Full text of Federal Reserve Bulletin : December 1920
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FEDERAL RESERVE BULLETIN ISSUED BY THE FEDERAL RESERVE BOARfT AT WASHINGTON DECEMBER, 1920 GOVERNMENT PRINTING OFFICE 1920 FEDERAL RESERVE BOARD. EX OFFICIO MEMBERS. DAVID F. HOUSTON, Secretary of the Treasury, Chairman. JOHN SKELTON WILLIAMS, Comptroller of the Currency. W. P. G. HARDING, Governor. EDMUND PLATT, Vice Governor. ADOLPH C. MILLER. CHARLES S. HAMLIN. D. C. WILLS. W. W. HOXTON, Secretary. WALTER S. LOGAN, General Counsel. W. L. EDDY, Assistant Secretary. W. M. IMLAY, Fiscal Agent. R. G. EMERSON, Assistant to Governor. J. F. HERSON, Chief, Division of Examination and Chief Federal Reserve Examiner. J. E. CRANE, Acting Director, Division of Foreign Exchange. H. PARKER WILLIS, Director, Division of Analysis and Research. M. JACOBSON, Statistician. E. L. SMEAD, Chief, Division of Reports and Statistics. OFFICERS OF FEDERAL RESERVE BANKS. Federal Reserve Bank of— Deputy governor. Governor. Chairman. Boston Frederic H. Curtiss. Chas. A. Morss. New York. Pierre Jav Benj. Strong *.. Philadelphia. Cleveland R. L. Austin L. B. Williams 4 . George W. Norris. E. R. Fancher.... Richmond ' Caldwell Hardy. George J. Seay. Atlanta. Chicago. Joseph A. McCord. Wm. A. Heath.... M. B. Wellborn. J. B. McDougal. St. Louis Minneapolis . Wm. McC. Martin. John H. Rich D. C. R. A. Young. J. Z. Miller, jr R. L. Van Zandt. J. U. Calkins ! Asa E. Ramsay.. | Wm. F. Ramsey. j John Perrin Kansas City Dallas San Francisco 1 On leave of absence. 2 Acting governor. 3 Controller. * Acting chairman. Cashier. C. C. Bullen W. W. Paddock. J. H. Case2 L. F. Sailer E. R. KenzeL... G. L. Harrison.. W. Willett. L. H. Hendricks.3 J. D. Higgins.* 3 Channing Rudd. A. W. Gilbart.3 3 Leslie R. Rounds. J. W. Jones.3 W. A. Dyer. H. G. Davis. Wm. H. Hutt, jr M. J. Fleming Frank J. Zurlinden.. C. A. Peple R. H. Broaddus A. S. Johnstone 56 John S. Walden L. C. Adelson C. R. McKay B. G. McCloud5 0. M. Attebery W. B. Geery S. S. Cook C. A. Worthington Lynn P. Talley Wm. A. Day Ira Clerk 6 C. H. Stewart 6 5 Assistant to governor. Geo. H. Keesee. M. W. Bell. S. B. Cramer. J. W. White. B. V. Moore. J. W. Helm. Sam R. Lawder. W. N. Ambrose. 6 Assistant deputy governor. MANAGERS OF BRANCHES OF FEDERAL RESERVE BANKS. Federal Reserve Bank of— New York: Buffalo branch Cleveland: Cincinnati branch... Pittsburgh branch... Richmond: Baltimore branch... Atlanta: New Orleans branch. Jacksonville branch. Birmingham branch. Nashville branch Chicago: Detroit branch St. Louis: Louisville branch. .. Memphis branch Little Rock branch.. Manager. Ray M. Gidney. L. W. Manning. Geo. De Camp. Morton M. Prentis. Marcus Walker. Geo. R. De Saussure. A. E. Walker. J. B. McNamara. R. B. Locke. Federal Reserve Bank of— Manager. Kansas City: Omaha branch L. H. Earhart. Denver branch C. A. Burkhardt. Oklahoma City branch. C. E. Daniel. Dallas: El Paso branch Houston branch W. C. Weiss. E. F. Gossett. San Francisco: Los Angeles branch... Portland branch Salt Lake City branch. Seattle branch Spokane branch C. J. Shepherd. Frederick Greenwood. R. B. Motherwell. C. A. McLean. W. L. Partner. W. P. Kincheloe. J. J. Heflin. A. F. Bailey. SUBSCRIPTION PRICE OF BULLETIN. The FEDERAL RESERVE BULLETIN is the Board's medium of communication with member banks of the Federal Reserve System and is the only official organ or periodical publication of the Board. It is printed in two editions, of which the first contains the regular official announcements, the national review of business conditions, and other general matter, and is distributed without charge to the member banks of the Federal Reserve System. Additional copies may be had at a subscription price of $1.50 per annum. The second edition contains detailed analyses of business conditions, special articles, review of foreign banking, and complete statistics showing the condition of Federal Reserve Banks. For this second edition the Board has fixed a subscription price of $4 per annum to cover the cost of paper and printing. Single copies will be sold at 40 cents. Foreign postage should be added w^hen it will be required. Remittances should be made to the Federal Reserve Board. No complete sets of the BULLETIN for 1915, 1916, or 1917 are available. in TABLE OF CONTENTS. Review of the month Business, industry, and finance, November, 1920 Condition of wholesale trade Production of knit goods. Production of finished cotton fabrics.: The international financial conference at Brussels Method of adjusting salaries of bank employees to meet changes in the cost of living Gold re3erves of principal banks of issue, 1910-1920 Official: Foreign branches of American banks State banks and trust companies admitted to system Banks granted authority to accept up to 100 per cent of capital and surplus Charters issued to national banks Fiduciary powers granted to national banks Rulings of the Federal Reserve Board Law department: Decision of the United States Circuit Court of Appeals in Atlanta "par clearance" case Miscellaneous: New coinage and paper currency laws for India Commercial failures reported Statistical: Retail trade index Foreign trade index Wholesale prices abroad Wholesale prices in the United States Discount and interest rates prevailing in various centers Physical volume of trade Gold settlement fund transactions Debits to individual account, October and November Discount and open-market operations of the Federal Reserve Banks Operations of the Federal Reserve clearing system Resources and liabilities of the Federal Reserve Banks Federal Reserve note account Condition of member banks in selected cities Imports and exports of gold and silver Estimated stock of money in the United States Discount rates approved by the Federal Reserve Board Diagrams: Wholesale prices in the United States IV Page. 1253 1264 1274 1275 1275 1277 1293 1295 1298 1299 1300 1300 1300 1301 1303 1298 1300 1307 1309 1310 1325 1329 1330 1339 1342 1345 1350 1351 1356 1357 1364 1368 • 1368 1326 FEDERAL RESERVE BULLETIN VOL. DECEMBER, 1920. 6 REVIEW OF THE MONTH. Fiscal operations of the Government during the month of November have T r e a s u r y s n o w n a gross income of finances. ° $275,420,812 on ordinary account and a gross expenditure of $426,092,313 on ordinary account, the result accordingly being a net deficit of $150,671,501. The Treasury Department on November 8 offered an issue of certificates of indebtedness amounting to $200,000,000, which was oversubscribed to the extent of more than $92,000,000. The amount allotted as announced on Wednesday, November 17, was $232,124,000. The rate named was 5f per cent. Seven of the Federal Reserve districts oversubscribed their quota. Question having arisen in some quarters as to the advisability of relaxing the requirements of the Government relative to the payment on December 15 of the fourth installment of income and excess profits taxes, the Secretary of the Treasury made public on November 22 a statement in which he outlined certain aspects of the present position of the Treasury, saying in part: " The revenue act provides for the payment of income and profits taxes in four quarterly installments due on March 15, June 15, September 15, and December 15. The taxes due on December 15, 1920, represent chiefly the final installment due in respect to income and profits of the taxable year 1919. Taxpayers have already had nearly 12 months' grace as to this final installment and have had every opportunity to make provision for its payment by setting up the necessary reserves or purchasing Treasury certificates of indebtedness. The Treasury Department, moreover, has adjusted its financial program to the tax payment dates provided by the revenue act of 1918. There are outstanding nearly $700,000,000 of certificates maturing on December 15, 1920, and $300,000,000 additional mature on January 3 and January 15, 1921. On December 15 there will also become payable the semiannual interest on the first Liberty loan and the Victory No. 12 Liberty loan, aggregating about $140,000,000. To meet these heavy maturities of principal and interest and at the same time provide for the current requirements of the Government, enlarged as they are by the extraordinary burdens impos 3d upon the Treasury in connection with paym 3nts to the railroads, the Treasury relies chiefly on the income and profits taxes payable on December 15. This installment is not expected to exceed $650,000,000. The Treasury must finance its further requirements, so far as they are not covered by ordinary current receipts, through issues of Treasury certificates of indebtedness. It would be impossible to defer the payment of the December installment of taxes without forcing the Treasury to offer Treasury certificates in prohibitive amounts." The year 1920 has been a period of decided advance in the process of ecoClose of a re- nomic readjustment consequent markable year. upon the conditions left by the war. Production had been developed to a very high point as a result of war necessities, besides being diverted into channels different from those normal in peace time. It was, therefore, inevitable that a period of readjustment involving some decrease in output, at least temporarily, should ensue. On former occasions, when problems of a similar sort have been met with, the process of readjustment from a war to a peace-time level of business has been extremely rigorous. Conditions during the present period of readjustment have by comparison been tolerable. Production during the latter part of the year has, it is true, fallen off in some branches following upon the readjustment of the price structure. Fundamental alterations in the distribution of labor between trades and employments have also been a feature of recent months. In the banking field the advance of the volume of deposits has changed during the recent months into a recession, although Federal Reserve note circulation was about $200,000,000 larger at the close of November than at the end of July. It is also to be noted that there has been a marked change in the composition of bank portfolios resulting 1253 1254 FEDERAL RESERVE BULLETIN. from the gradual retirement of long-term or speculative paper and the substitution of paper based upon bona fide commercial transactions growing out of the actual purchase and sale of goods. In international trade the conditions which led to an excessive development of exporting business have been in process of change, and a return to more normal conditions is now in progress. So far as concerns the European countries the year has been noteworthy in international trade for a decided evidence of increase of productive power which, although interrupted from time to time by internal difficulties of one kind or another, has nevertheless been the dominant feature in the foreign economic movement. Very sharp reduction in prices coupled with heavy decreases in production, extensive unemployment, and business reaction, often involving bank failures, have been the outstanding features of readjustment in former years. The transition through which the community is now passing, while necessarily uncomfortable, has thus far been accompanied by only a minimum of the unfavorable symptoms developed on other occasions. While the present process is as yet incomplete and though some lines of business may be expected to pass through a still further period of reorganization, there is good reason for believing that with our present strong banking structure the difficulty of the transition will not be much further aggravated and that a normal situation will be restored with far less than usual distress. The fiscal situation both at home and abroad is still uncertain due to the fact that, while the war was technically over at the signing of the armistice, it was not over in the financial sense until a long time later, while it has not been possible during the readjustment period to place public finance in any country upon its peace time footing, pending much closer ascertainment of the best method of taxation. The close of the year 1920, however, in spite of the fact that in some branches of economic and financial life there is still much progress to be made before reaching a definite basis for further growth, must nevertheless be regarded as quite unmistakably a turning point in the process of transition from conditions produced DECEMBER, 1920. by the war to the normal economic basis of international and industrial life. In thus estimating the position of the economic organization at the close Basis of pros- <• , v 1AOA •, or the year 1920, very large rft emphasis should undoubtedly be placed upon the volume of production. It is in the quantity of output supplied by a nation that the best test is found of its true position from the economic standpoint. Although the year 1920 shows a downward movement in some branches of production and trade and a lessening of the activity with which credit media are employed, a gratifying aspect of the year is seen in the fact that the changes thus far reported have been so small, especially when the great activity of production and the great extension of credit which occurred during the war period are borne in mind. Considering the year 1920 in comparison with similar periods, reaction shown by the indexes representing the chief lines of business activity, as already stated, is in most cases relatively minor as compared with the volume of production and trade when at its high point. While much is said of changes in prices and particularly of declines of prices as an indication of economic retrogression, it is to be remembered that the real income of the community is the quantity of goods available for consumption and not the money value of the goods thus produced. The fundamental test of the degree in which conditions which make for prosperity have been regained and former industry restored is found in the indexes which exhibit actual volume of output. Of primary importance are statistics showing the yield of agricultural and manufacturing industries. Next to these are indexes showing the actual movement of goods from producer to consumer. The latter may be best derived from statistics of freight movement, figures showing the activity of money and credit, and data reflecting the activity of wholesale and retail trade. Prices play an important part as a factor in the process of distribution,, and the price level is of first significance to the student of business conditions because it aids in definitely determining the profit-making position of the various economic factors of the community as measured in terms of money DECEMBER, It is true that reductions in wholesale prices in 1920 have greatly lowered the general levels. It should be remembered, however, that far too great stress may be placed upon the level of prices in connection with national condiditions, since prices are expressions of relative value and hence of much greater interest to the individual than to the community at large. Viewed from the standpoint of the volume of commodities rendered availThe volume of production. *, -, £ able for ,. ,i consumption, the year 1920 has been one of unusual success. As is well known, the output of primary wealth—the product of the farms and, in general, of agricultural enterprise—has been of more than average size. Preliminary estimates have already been furnished for this output in former months. The figures of the Department of Agriculture, made available at the opening of November, are substantially the same as those which have already been published for October 1 and, as pointed out in past issues, exhibit in most lines a substantial advance above the average of recent years, and in some important crops corstitute the largest output ever produced. In the case of corn, the only product for which the November estimates differ from those of October, the estimated output, although showing a decline of about 17,000,000 bushels, still remains the largest on record. While the situation as to agriculture is practically beyond question, the work of the year in respect to manufacturing is less clear. According to some investigators, however, the output of the country, whether as measured in the aggregate or per capita, was probably close to high-water mark at the close of spring. The facts would indicate that in the more distinctly manufacturing and industrial lines there had been subsequent to the heavy war production a natural decrease in, and readjustment of, output which became evident shortly after the opening of 1919 and which continued for several months thereafter. The requirements of, buyers did not dominate market conditions, but there subsequently developed shortages in various lines. Of this situation the final result was a considerable increase in productive activity, although in 1255 FEDERAL RESERVE BULLETIN. 1920. some lines, such as those of textile production, a so-called "sellers' market" eventually developed. That this situation had not become well established until the spring of 1920 was far advanced is not singular. This period of higher production was apparently reaching its peak during the early months of 1920. Since the late spring of the year 1920, however, there has been in progress a certain decrease in output. The condition of different industries in this regard is by no means uniform, although it may be seen most clearly in textiles. Shipbuilding, and very recently the iron and steel industries, exhibit an influence of the same kind. The decrease in unfilled orders on the part of the United States Steel Corporation, which has been in progress ever since about the beginning of August, points clearly not only to a relative decrease in the activity of these basic industries but also to a falling off in that of other industries which are practically dependent upon them. Building construction may be ranked as one of the latter. Exactly how far the shrinkage in production has gone can, of course, be stated only conjecturally as an aggregate figure, but light on the present situation is furnished by the Board's index of production, which makes the following showing: Sept., 1920. Oct., 1920. Oct., 1919. Total. Relative. Total. * e Jf Total. Relative. Receipts of live stock at 15 western markets (in thousands of 5,266 head) Receipts of grain at 17 interior centers (in thousands of bushels). 110,111 Sight receipts of cotton 772 (in thousands of bales). Shipments of lumber reported by 3 associations (in millions of 716 feet) Bituminous-coal p r o duction (in thousands 51,093 of short tons) Anthracite-coal production (in thousands of 5,125 short tons) .". Crude-petroleum p r o duction (in thousands 37,889 of barrels) Pig-iron production (in thousands of long ?>, 129 tons) Steel-ingot production (in thousands of long 3,000 tops) Cotton consumption (in 458 thousands of bales)— Wool consumption (in thousands of pounds). 30,928 75.6 5,355 76.9 6,962 116.0 95,955 101.1 94,901 100 42.1 1,463 79.7 1,835 100 85.3 699 83.3 839 100 90.8 50,744 90.2 56,243 100 60.6 7,645 90.4 8,459 100 113.7 39,838 119.6 33,319 100 167.9 3,293 176.7 1,864 100 100 3,016 82.4 400 72.0 556 100 51.5 33,704 50.2 60,018 100 1256 FEDERAL RESERVE BULLETIN. In order to illustrate clearly the changes in production during the current year there have been prepared and are presented herewith four brief tables showing the situation in agriculture as based upon live stock, grain, and cotton sight receipts during the year 1920; the production of bituminous and anthracite coal and of crude petroleum; the output of pig iron and steel ingots and the unfilled orders of the United States Steel Corporation; and the consumption of cotton and wool. Movement of agricultural products. DECEMBER, 1920. Cotton and woolen industries. [Pounds.] Cotton consumption. Average for year 1918 Average for year 1919 Wool consumption. 2,573,561,000 ! 50,429,835 2,466,193,000 I 45,257,215 1920. January February March.." April May June July August September October I 2,958,625,000 2,582,970,000 I 2,878,520,000 ! 2,839,195,000 I 2,705,400,000 ! 2,777,605,000 I 2,627,025,000 ! 2,415,965,000 ! 2,288,235,000 ! 1,999,185,000 059,862 247,652 344,602 887,832 649,381 679,920 372,064 849,956 928,337 [Monthly average, 1911-1913=100.] and Live stock Grain flour rereceipts at ceipts at 15 western 17 interior markets. centers. Average for year 1918. Average for year 1919 1920. January February March , April May June July August September October Cotton sight receipts. 127 129 126 106 74 84 139 105 110 90 112 110 100 109 114 116 102 99 87 56 74 92 97 114 137 126 90 64 44 29 21 29 24 61 Coal and petroleum. [Monthly average, 1911-1913=100.] Anthracite Bituminous Crude coal procoal pro- petroleum duction. duction. production. Average for year 1918 Average for year 1919, 1920. January February March April May June July August September October Ill 97 130 103 155 164 100 92 98 88 105 103 105 99 69 103 131 116 126 102 107 118 123 131 138 137 177 186 190 189 193 195 201 206 198 208 Iron and steel. [Monthly average, 1911-1913=100.] Unfilled Pig-iron Steel-ingot U.orders S. Steel production. production. Corporation. Average for year 1918 Average for year 1919 1920. January February March April May June July August , September October 138 110 125 164 114 130 138 ,146 118 129 131 132 136 135 141 123 127 137 109 119 123 116 124 124 125 176 180 188 197 208 208 211 205 197 187 While it thus appears that the figures point to some reductions in certain lines of productive activities, thefiguresthus far available in other lines indicate an actual increase. Care should be taken in reviewing conditions at the close of the year 1920 Movement of a n d i n comparing them with goods. those existing at previous dates throughout the year to differentiate between production changes and trade changes. In all periods of transition it is the latter that are the more obvious. It should steadily be borne in mind that the year 1920 has been a more disturbed period in connection with the movement of goods to market than in production, and that as a result there has been at times congestion and arrested movement of commodities, while at other times the deliver}7 and consumption of products has been steady and satisfactory. In general, the year may be divided into three periods, the first culminating in the early spring or toward the end of April, at which time a peak of congestion had been reached on the railways as the result of bad weather and lack of satisfactory efficiency of railroad personnel aggravated by the tentative or "outlaw" strikes which had been in progress. Thereafter there ensued a period of fairly steady moving of commodities to points of consumption, assisted by the favorable weather in the spring and summer as well as by the increase in efficiency of the railroads of the country. From about September onward the movement of goods again began to show a decline, this being due in the case of agricultural staples to a tendency to hold products at the points of production, while in the case of manu- DECEMBER, 1920. factured articles it was probably the outcome of a reluctance or unwillingness on the part of distributors to go on receiving eonsignmen ts. This situation has been noteworthy from time to time not only with respect to the domestic movement of goods but also in relation to exports, It was worthy of note also that in spite of the large yield in agricultural lines the grain movement lias been unexpected!}7 small, partly in consequence of defective transportation at certain times of the year and partly as a result of a disposition on the part of farmers to hold back their product. Conditions in transportation were reflected in the figures showing the movement of goods last spring and in certain decreases of the same sort for the current autumn, notwithstanding that the ton-mile figures on railways are to-day of large size. In order to present the phase of the business situation reflected in the movement of goods from manufacturer to consumer there has been prepared a table, to show the movement of commodities, of ton-mileage figures for the railways as follows: Net ton mileage of United States raihvays. September, 1918 September, 1919 January, 1920 February, 1920 March, 1920 April, 1920 May, 1920 June, 1920 July, 1920 August, 1920 September, 1920 38,592,137,000 38, 860, 311,000 34, 769, 722, 000 32, 758, 789, 000 37, 990, 993, 000 28, 490, 595,000 37, 884, 967, 000 38,179, 565, 000 40, 435, 508, 000 42, 706, 835, 000 40, 999, 843, 000 In connection with this there should also be considered another table, exhibiting the total movement of certain selected exports as reflected in indexes presenting the total volume of goods shipped as they would be if stated in terms of the price level of 1913, In order to obtain these figures 29 of the most important articles of export were selected whose value in 1913 formed 56.3 per cent of the total value of exports. The export values of these commodities were then reduced for each month of 1920 for which figures are available in the proportion indicated by the index number of prices as compared with the price existing in 1913. Thus, for example, if the value of the exports in July, 1257 FEDERAL RESERVE BULLETIN. 1920, be represented by 100, while the price level at that date was 200 as compared with the level of 100 in 1913, the figure 100 would be divided by 2. With the column exhibiting exports in this way has also been associated a corresponding column representing import conditions based on 25 of the most important imports whose value in 1913 formed 47.7 per cent of total imports. Actual and adjusted values of imports and exports. [Monthly average values, 1913=100.] Value of total imports. Value of imports of selected commodities at 1913 prices. Value of total domestic exports. Value of exports of selected commodities at 1913 prices. 1919. January.. February March April Mav June July August September October November December.. . 142.6 157. 4 179.1 182.7 220.2 196.1 230.1 205.7 291.4 269 0 284.4 254. 8 111.4 128.0 161. 8 169.3 194.9 165.7 192.3 147.8 217.5 193. 2 198.1 172.4 299.9 281.4 290.3 333. 3 290.4 445.0 273.5 311.0 285.3 304. 2 357.7 327.6 124.7 99.0 106.1 129.3 111.4 174.7 110.9 117.5 103.9 104.2 126.7 114.6 1920. January February March April May June. Tulv August . September 317. 2 313. 0 350.8 331.8 288.5 370.1 359 6 343. 8 243.4 217.3 213.1 247.2 212.7 162.3 191.3 178 4 178.1 129.1 352. 5 309.9 393. 6 329. 7 356. 2 302.5 313 9 280.2 291.7 112.9 98.7 128.9 107.1 112.5 91.1 101 3 87.3 88. b An examination of the index numbers for the value of imports and exports as thus given leads to the conclusion that with price fluctuation eliminated, in the way already outlined our export volume for 1920 is on a lower level, some of the months for the period being lower than the average monthly figure for 1913. The volume of imports, however, is higher than the 1913 level, a fact which illustrates the statemen t often made that the reaction subsequent to the war which had been generally predicted by economists is now in progress. Thefiguresfor imports and exports, both when measured in volume and when measured in values, have shown an absolute tendency to fall off, although the growth of imports up to the present time has been greater than that of exports when adjusted values are taken as a basis for comparison. The year 1920 must undoubtedly be regarded as a period of transition from war conditions to peace conditions in our foreign trade. 1258 FEDERAL RESERVE B U L L E T I N . DECEMBER, 1920. lative single percentages designed to embody not only the returns of the current month but also accumulated results of preceding months, point to a decline in sales, which has not, it would seem, gone to very great length thus far, in some districts amounting merely to the curtailment or abolition of a seasonal increase of the volume of business which would otherwise have been expected, the remaining volume being higher than that of the preceding year. The tendency, howTonnage of vessels cleared in the foreign trade. ever, in other districts has been distinctly [Department of Commerce.] downward, and at the present time the Board's [Monthly average, 1911-1913=100.] index points clearly to a limitation of the active buying of consumers which was so Net tonnage Per centnoticeable during 1919 and the earlier part of Relaage Relative. Ameri- tive. 1920. This bears out the general impression can to American. Foreign. Total. total. already existing with respect to retail trade conditions as indicated by many reports of a Ill 185 46.7 September, 1918 2,009,194 2,290,872 4,300,066 131 203 general nature furnished by expert observers September, 1919 2,627,480 2,481,676 5,109,156 51.4 1920. in the various branches of trade. The activity 100 197 49.8 1,933,385 1,949,798 3,883,183 January 92 202 of retail trade is of special interest at the February 1,702,407 1,628,212 3,330,619 51.1 March 105 198 2,040,031 2,040,538 4,080,569 50.0 115 222 present time, because it usually is one of the April 2,504,038 1,960,634 4,464,672 56.1 133 209 May 2,729,790 2,436,247 5,166,037 52.8 163 200 last elements in the business situation to show June 3,199,274 3,141,913 6,341,187 50.5 178 189 July 3,302,538 3,616,052 6,918,590 47.7 194 190 the effects of those factors which make for August 3,616,267 3,929,602 7,545,869 47.9 178 195 depression or reduction. September 3,421,531 3,513,599 6,935,130 49.3 Curtailment of purchasing power does not usually occur, at least As is seen from the table, however, the ton- in full measure, until reductions of employnage figures thus far available show an actual ment and lowering of prices have resulted in increase in the amount of shipping required to lessening the incomes of buyers who are thereby carry our trade as compared with any preceding induced to suspend or limit their purchases. month during the whole course of the calendar Accordingly, a definite reaction in retail trade year, excepting only February and September. seldom presents itself until after readjustment The activity of retail trade is usually re- has made considerable progress in manufac^ #1 , garded as a direct index of the turing and even in wholesale activity. This is & Retail trade. „ for the reason that the decline in retail trade attitude oi consumers with remakes itself felt in some districts at a date spect to the price level and is looked to by considerably later than that which appears to students of the business situation not merely mark the turning point in production by manufor the purpose of obtaining a test of business facturers. The following table presents the conditions from the retail trade standpoint, combined results of the Board's study of the but also of affording an indirect index of the retail trade situation during the past year. probable rate at which stocks of goods will pass off through retail trade channels into the Retail trade activity—Per cent of increase in net sales of department stores in 1920 over 1919. hands of consumers. For a good many months past the Board has been developing a Jan. l, 1920, to close of— July 1,1920, to close of— Disretail trade index based upon figures concerning trict. Jan. | Feb. Mar. Apr. May. June. July. Aug. Sept. Oct. stocks of goods, turnover, and other important items furnished by a -specified number of No. 1.. 34.8 32.5 31.6 27.5 25.8 26.2 19.9 15.1 15.2 10.1 22.2 : 20.3 j 26.2 20.5 30.9 31.0 23.8 24.9 19.6 17.3 leading retail establishments in the several No.3..i No. 4.. ! 36.0 i 38.2 33.6 32.1 34.6 29.9 27.3 25.9 23.9 Federal Reserve districts. A study of these No. 12. 51.7 ! 46.5 41.0 36.9 34.7 33.2 21.2 21.4 19.8 16.8 figures, and especially a comparison of cumu- These changes are most clearly illustrated when the influence of price fluctuations is eliminated from the figures in order to place them on a comparative basis of volume. It is also worthy of note in this connection that after a period of steady growth during the first eight months of the year in the amount of shipping actually engaged in carrying our foreign commerce a certain reaction has now set in, as may be seen from the following table: i DECEMBER, 1920. FEDERAL RESERVE BULLETIN. 1259 Figures showing the development of retail ment of the figures during the years 1919 and trade are not, however, indica- 1920, which is herewith presented: A c t i v i t y of tive of more than the superficial Bank transactions as shown by debits to individual account. business. attitude of buyers with respect [In millions of dollars, i. e., 000,000 omitted.] to consumption goods. They may be subject to other very special influences, as is seen from Jan., Feb., Mar., Apr., M a y , June, July, District. 1919. 1919. 1919. 1919. 1919. 1919. 1919. the fact that the prompt reduction of prices to consumers may at times result in the temporary No. 1 1,989 1,355 1,570 1,514 1,766 1,717 1,863 2 18,683 14,927 17,189 17,859 21,418 21,613 22,953 and perhaps deceptive increase of buying on No. 1,562 1,495 1,649 1,673 1,768 No. 3 1,633 1,318 1,931 1,998 2,119 2,272 2,403 4 2,115 1,709 the part of consumers who believe it wise to No. 574 595 652 722 779 No.5 640 549 781 772 885 872 897 6 910 735 "stock u p " in advance of actual needs. A No. 3,732 4,180 4,217 4,556 No. 7 3,975 3,307 3,713 875 868 919 I 934 1,032 8 1,027 837 better analysis of the general activity of trade No. 584 629 661 | 614 646 No. 9 713 477 1,092 1,242 1,125 1,131 1,321 No. 10 1,134 1,002 throughout the whole economic structure is No. 543 454 541 468 580 11 536 420 1,862 1,748 1,680 1,620 1,994 1,709 1,450 afforded by the study of figures showing the No. 12 Total.. 34,792 28,086 32,044 32,642 37,896 38,194 40,918 actual use made of the mechanism of exchange or, in other words, the extent to which exNov., D e c , Jan , Feb., Oct., Sept., change media have been used for the purpose District. Aug. 1919. 1919. 1919 1919. 1919. 1920. 1920. of transferring goods from sellers to buyers. 1,712 2,246 2,181 2,354 2,277 1,760 1,788 It is with a view to developing this phase of No. 1 20,471 21,366 24,846 24,442 25,013 24,321 18,606 No. 2 1,612 1,853 1,766 1,631 1,780 1,970 2,034 the situation that use has frequently been made No.3 2,411 2,358 2,283 2,621 2,626 2,186 2,136 No.4 913 729 in the past of data showing the per capita vol- No.5 729 862 846 722 831 1,299 l,0L9 918 1,170 1,142 1,218 838 No. 6 ume of money in circulation—an imperfect No. 4,552 4,777 4,704 4,959 5.134 4,320 4,328 7 1,224 945 1,073 1,111 1,043 916 1,008 index of the activity of exchange. Better than No.8 821 648 852 753 736 6172 770 No. 9 1,348 1,347 1,481 1,322 1,276 1,409 i,2ai No. 10 this, but still unsatisfactory, is the practice of No. 11 554 611 743 764 780 743 584 2,099 2,344 2,227 2,436 2,396 1,977 2,030 analyzing clearing-house figures. Early in its No. 12 Total.. 37,236 I 39,243 44,525 43,483 I 45,493 45,184 35,706 effort to provide a satisfactory review of business conditions the Federal Reserve Board Apr., May, June, July, Aug.,Sept.. Oct., 1920. 1920. 1920. 1920. I 1920. 1920. 1920. instituted a system of statistics showing debits District. to individual depositors' account throughout the 2,082 2,103 2,151 2,021 2,084 1,761 1,876 2,106 country, relying upon the clearing-house banks NNo.o . l2 22,919 21,991 21,376 20,208 19,791 18,007 18,237 20,817 1,947 1,939 1,946 1,942 1,914 1,818 1,795 1,927 of the various clearing centers for this informa- No.3 2,616 2,608 2,556 2,667 2,757 2,424 2,269 2,109 No.4 743 742 805 816 805 828 823 841 tion. Thefiguresthus accumulated are of large No.5 970 1,009 1,046 1,174 1,143 1,132 1,036 1,053 No. 6 5,010 4,953 4,774 5,122 5,045 5,388 5,277 5,111 7 value in affording evidence as to the degree of No. 917 957 1,006 997 1,115 1,054 1,055 987 No.8 655 802 890 702 686 708 698 727 No. 9 activity in the use of banking media and are No. 10 1,451 1,313 1,408 1,333 1,323 1,327 1,390 1,420 726 633 786 670 614 652 645 652 11 accordingly deserving of unusually careful No. 2,472 2,347 2,420 2,425 2,541 2,293 2,382 2,469 No. 12 study. They indicate a decline in total debits 41,598 41,375 39,779 39,910 36,334 37,195 40,503 Total.. to individual account. Total figures for the NOTE.—Monthly figures are prorated from weekly data shown each United States increased from 34.7 billions in month in the FEDERAL RESERVE BULLETIN. Caution is necessary in their interpretation, as the number of reporting centers varies slightly. January, 1919, to 45.4 billions in December, It should, of course, be understood that the 1919, this being the peak of the movement. decline in debits to individual account which The returns for January, 1920, at 45.1 billions is thus presented has no necessary relation to were nearly as large, but thereafter an almost the credit or "money" situation. The total continuous decline set in. The low point in the amount of bank deposits as well as the movement was apparently reached in August, volume of notes in circulation have been slowly 1920, with 36.3 billions, since which time manor on the increase within recent months. The figadvances have taken place. It should be reures showing debits to individual account to called, however, that the organization of the which reference is made herein are essentially New York Stock Exchange clearing house has figures showing a "turnover 7 ' of credit, or conto some extent altered the reports from disdescribe as trict No. 2. These facts may be more clearly stitute a factor in what economists 7 "velocity of circulation/ They indicate not set forth in a table designed to show the move- 1260 FEDERAL RESERVE BULLETIN. the total amount of credit which is available for the use of the individual or business establishment, but the decrease in the activity with which such credit has been used by its owners. The downward trend of exchange during 1920 Production appeared to have reached the and foreign ex- low point toward the middle of change. November, when sterling was quoted below 3.40. As may be seen from the graphic representation already published in the last issue (p. 1159), the movement of practically all European exchanges has been steadily downward and practically on parallel lines since early in the year. The sharp depression which was brought about in the early part of November was attributed by experts to the necessity of financing considerable quantities of grain and cotton bills growing out of the shipments of this year's products at a time when, as already pointed out in former issues, there was a very large outstanding indebtedness on the books of foreign banks and business houses, which resulted in creating an overhanging supply of exchange, which was at times "dumped" in the market whenever a slight upward trend suggested the possibility of converting foreign currencies into dollars at even a tolerably favorable rate. This, of course, was a situation primarily applicable only to European exchanges. Nevertheless, in relations with South American countries the situation was equally unfavorable, due to conditions already set forth and including depression of prices as well as the disturbance of our foreign trade relationships with those countries. In a general way it may be said that the year 1920 has been a period of practically steady deterioration in exchange conditions, as reflected in the constantly growing open balances in favor of the United States which are being carried in an increasingly large list of foreign nations. Foreign exchange conditions during the year 1920 throw interesting light upon the bearing of exchange rates on international trade. They show that abnormally low quotations of foreign currencies tend to reduce the export shipments of the nation, particularly when these low quotations are the result of unpaid balances which give rise to a quantity of exchange that may be thrown upon the market at any given moment. The exchange situa- DECEMBER,, 1920. tion is therefore in some measure responsible for the slowing down of the export trade of the United States, and illustrates once more the necessity of action designed to bring about soundness in international financial relations. Another phase of present conditions which deserves particular attention is seen in the fact that as things stand the amount of our exports would seem to be quite closely conditioned upon the amount of our imports. As our banking and mercantile credit situation becomes more and more saturated with foreign credit, or, in other words, reaches a position where it is difficult to extend any more accommodation— certainly no more long-term accommodation— to foreigners, the natural inference would seem to be that current and future shipments of our goods abroad would be paid for in very large measure with contemporary shipments of goods to this country. Such a situation is evidently developing, as is sem in the study of foreign trade already presented. The facts as thus set forth afford a satisfactory explanation of the steady increase in our importations from abroad and furnish a warrant for the opinions of those who have believed that there would be a larger movement of goods into the United States as the result of the extensive credits which have in the past been granted foreign countries. Price movements have already been incidentallv referred to as a factor P r i c e s and ™ ,. " ,. , , ml anecting readjustment. The remarkable changes of 1920, however, require some special attention. In the case of wholesale prices, readjustment has occurred in a more striking fashion than in perhaps any other field. In January prices in the United States stood at 242 per cent of the prewar level, according to the Federal Reserve Board index number. They continued to advance until April, when the index number stood at 263. May prices were at approximately the same high level, but since that time the decline has been quite considerable. By October the Board's number had fallen to 208, showing a decline of 21 per cent from the peak. More or less similar readjustments have been made in foreign prices during the same period. British prices reached their peak in April and have been on the decline since then, the t d DECEMBER, 1920. FEDERAL RESERVE BULLETIN. 1261 reductions in the past two months being goods on home markets, have been the prinespecially noteworthy. Canadian prices have cipal factors of the transition period in our shown tendencies very similar to those in the dealings with South America. In order to United States. In Japan the drop in prices remedy these conditions desire has been exhas been more extreme, the difference between pressed in various South American countries the March and October index numbers amount- that loans in their favor shall be floated in our ing to 30 per cent. market. The extent to which such expectaFrance and Italy show somewhat different tions might be satisfied wrould depend very fluctuations. In both countries prices reached largely, of course, upon the degree in which their peak in April of this year, receding from the credit thus to be extended actually furthese high points during the next two months, nished a means of effectually paying current but increasing again recently. But even in obligations. The real point of the situation these two cases the index numbers are at is that many of the South American countries slightly lower points than last spring. In the which produce staples, such as sugar, coffee, following table are presented index numbers rubber, and others which have greatly fallen for January, April, and October: in price, find themselves without the means of meeting obligations which they had conWholesale price indexes. tracted on the assumption that their commodi[Average prices, 1913=100.] ties would command a much higher price, or, in other words, they find the sale of these Jan., 1920. Apr.,1920.!Oct., 1920. articles slow in the United States because of United States 242 263 ! 208 the slackening of demand for goods which has United Kingdom. 288 313 282 France 487 584 ! 503 left many concerns more than fully equipped Italy 504 679 i 665 Sweden The South 319 354 i 346 with quantities of raw material. Canada 248 261 1 234 Japan 301 300 ! 226 American countries are thus, through a combiIndia 218 200 i 206 Australia nation of special circumstances, placed in 203 217 ! somewhat the same position as the nations of Within the past month further developments Europe. They lack paying power because what in South American trade have they have for sale is for the moment not suffiCommerce with -, I T , , i ciently high priced and not sufficiently salable r cooutn ., America. . . occurred which tendI to empha. to enable them to equalize their trade balance size the real character of our with the United States. The situation for the foreign trade problem. A moratorium had altime being is thus similar to that of such ready been declared by Cuba on October 10 and European countries as are riot as yet in position has been in effect ever since then. Meanwhile to export in any degree or are insufficiently other moratoria or what amounts to such a susprepared to meet their recurring interest pension have been put into effect in several of obligations and pay for their current importathe So th American countries, notably in Parations from the United States. The decline guay. The immediate cause of trouble has of prices thus exerts an unexpected influence been found in the rapid decline of staple produpon our foreign business by limiting the field ucts, such as sugar, hides, rubber, coffee, wool, of our markets in those countries from which and other chief exports, while the demoralizawe draw staples which have suffered the most tion of exchange rates upon the United States severe recession as a result of recent alterahas made it difficult, in some cases next to imtions in the price level. possible, for South American importers to purDuring the month ending November 10 the chase dollars with which to pay for their North net inward movement of gold American importations and yet leave themGold and sil- w & g $62,519,000. as compared L selves in position to dispose of the goods at ver movements. . ' ' , with a net inward movement prices which will appeal to the community. Decline in prices, lack of stability in exchange, of $56,503,000 for the month ending October and consequent inability to sell imported 10. Net imports of gold since August 1, 1914, 1262 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. were $816,229,000, as may be seen from the Mexico furnished $2,288,000, or almost onefollowing exhibit: half, and Peru $1,038,000 of the $4,645,000 of silver imported during the monthty period [In thousands of dollars.] ending November 10, most of the remainder Excess of coming from Chile, Bolivia, Honduras, and imports Exports. Imports. over Canada. Of the silver exports, amounting to exports. $4,927,000, about 45 per cent, or $2,246,000, i 81,719 104,972 Aug. 1 to Dec. 31, 1914 23,253 was consigned to Japan, $1,555,000 to China, 420,529 31,426 Jan. l t o Dec. 31, 1915 451,955 529,952 155,793 Jan. l t o Dec. 31, 1916 685,745 and the remainder principally to Hongkong, 181,542 372,171 Jan. l t o Dec. 31, 1917 553,713 21,102 Jan. l t o Dec. 31, 1918 61,950 40,848 Mexico, and Canada. 1291,651 Tan. 1 to Dec. 31, 1919 76,534 368,185 36,474 Jan. l t o Nov. 10,1920 333,775 297,301 Substantial credit liquidation and some de816,229 1,370,696 Total 2,186,925 The banking crease in borrowings from Fedi Excess of exports over imports. situation, eral Reserve Banks are the salient features of developments in the bankEngland furnished $82,053,000, or over 86 ing field during the five weeks between October per cent, and France $5,571,000 of the $95,060,- 15 and November 19, as indicated by the 000 of gold imported during the monthly weekly reports of about 825 member banks in period ending November 10, Columbia, Canada, leading cities. Sweden, Australia., and Mexico furnishing most As against an increase of over 11 millions in of the remainder. Of the gold exports, the holdings of United States war securities amounting to $32,541,000, over 85 per cent, or proper, i. e., Liberty bonds and Victory notes, $27,942,000, was consigned to Japan, $3,000,the reporting banks show a reduction of 16.4 000 to China, and the remainder principally to millions in their holdings of Treasury cerHongkong, Mexico, and Canada. Since the tificates, notwithstanding the substantial inremoval of the gold embargo on June 9, 1919, crease in these holdings shown on November 19 total gold exports have amounted to approxi- following the most recent certificate issue. All mately $651,097,000. Of this total, $174,407,- classes of loans show considerable reductions— 000 was consigned to Japan, $146,555,000 to loans supported by Government war obligaArgentina, $69,330,000 to Hongkong, $67,396,- tions by about 30 millions, loans supported by 000 to China, $40,812,000 to British India, corporate securities by about 120 millions, and $29,778,000 to Spain, and the remainder prin- all other loans and investments, composed cipally to Mexico, Uruguay, the Dutch East largely of commercial loans and discounts, by Indies, the Straits Settlements, Canada, and 336 millions. Total loans and investments on Venezuela. November 19 stood at 16,794 millions, or about During the same monthly period the net 490 millions below the total shown five weeks outward movement of silver was $282,000, as previous. Member banks in New York City compared with a net inward movement of show larger liquidation of loans secured by ' $1,308,000 for the month ending September 10. corporate obligations and a reduction of 287 Net exports of silver since August 1, 1914, millions in total loans and investments. Acwere $454,571,000, as may be seen from the commodation of all reporting institutions at the following exhibit: Federal Reserve Banks during the first three weeks under review fluctuated within moderate [Tn thousands of dollars.] limits, reaching a high of 2,278 millions on Excess of November 5. During the following two weeks exports Imports. Exports. over these banks were able to reduce their loans imports. from their Reserve Banks by 159 millions, or 10,053 12,129 22,182 Aug. l t o Dec. 31. 1914 19,115 to 12.6 per cent of their total loans and invest34,484 53,599 Jan. 1 to Dec. 31, 1915 32,263 38,332 70,595 Jan. 1 to Dec. 31, 1916 53,340 30,791 ments, compared with 13 per cent on October 84,131 Jan. l t o Dec. 31, 1917 71,376 181,470 252,846 Jan. l t o Dec. 31, 1918 89,410 149,611 15. 239,021 For the New York City banks this ratio Jan. l t o Dec. 31, 1919 79,856 25,199 Jan. 1 to Nov. 10, 1920 105,055 continued practically unchanged at slightly 454,571 Total. 372,858 827,429 i over 14.5 per cent. DECEMBER, 1920. For the five weeks between October 22 and November 26 the Federal Reserve Banks show a decrease of about 14 millions in their holdings of discounted paper. Holdings of acceptances purchased in open market declined from 300.7 to 247.7 millions, liquidation of this class of paper being heaviest during the second part of November, when in consequence of the lower call-money rates the investment demand for prime bankers7 acceptances largely increased. Fluctuations in the totals of Treasury certificates held reflect chiefly the amounts of special certificates held by the Reserve Banks to cover advances to the Government pending collection of funds from depositary institutions. The total of such special certificates reached the high figure of 64 millions on November 19, following the large disbursements of the Government in interest payments and in the redemption of loan certificates, but declined to 21 millions by the following Friday. A considerable decrease is shown in the volume of interbank rediscounting, the total of paper held under discount for other Reserve Banks by the Boston, Philadelphia, and Cleveland banks showing an almost continuous reduction from 243.1 to 154.1 millions. On November 1 the Atlanta bank abolished its graduated discount rates and raised its rate on 90-day paper to 7 per cent. This change apparently has not yet had any effect upon the volume of discount operations, total discounts of this bank showing a nominal increase between October 29 and November 26 from 176.8 to 177.2 millions, while rediscounts with other Reserve Banks increased meanwhile from 36.1 to 40.2 millions. For the three Reserve Banks of St. Louis, Kansas City, and Dallas, which continued to apply graduated rates during November, a reduction of total discounts from 429.1 to 378.9 millions, as against a reduction from 115 to 67.9 millions in bills rediscounted with other Reserve Banks, is seen. Net deposits show but a moderate change since October 22, the November 26 figure of 1,623.6 millions being only one million below the October 22 total. Federal Reserve note 1263 FEDERAL RESERVE BULLETIN. circulation, after a practically continuous reduction during the first four weeks of the period, resumed its upward trend during the following week, with the result that the November 26 total'of 3,325.6 millions shows a further expansion of 18.2 millions for the week, though a reduction of 30.6 millions since October 22. Gold with foreign agencies shows a further reduction from 80.4 to 70.2 millions, the latter total including 3.3 millions of gold held "earmarked ;) for account of the Federal Reserve Banks by the Bank of France. Total gold reserves, as the result of further net gold imports, mainly from Great Britain, reached a total of 2,023.9 millions, a gain for the period of 29.3 millions, while total cash reserves show an even larger gain for the five weeks from 2,157.3 to 2,195.3 millions. The banks7 reserve ratio shows a decline between October 22 and November 5 from 43.3 to 43 per cent. During the following weeks, because of the considerable reduction in note and deposit liabilities and the gain in reserves, the ratio rose to 44.4 per cent, which is only 1 per cent below the maximum shown for January 9 of the present year. The usual quarterly session of the Fed-eral Reserve Board with the Federal Meetings of A d y i Council occurred on the month. AT / ... November 15. Light districts were represented, those not so represented being New York, San Francisco, Dallas, and Kansas City. The session was devoted to a general consideration of credit and banking conditions as existing at this time throughout the country, and the reports showed a reassuring condition of soundness as well as concurrence on the part of those present in the credit policy which is being followed by the reserve system in general. During the month sessions of the special committee of the Federal Reserve Agents, nominated at the annual conference in October, for the purpose of considering general questions relating to business conditions reports have been in progress. 1264 FEDERAL RESERVE BULLETIN. DECEMBER,, 1920. BUSINESS, INDUSTRY, AND FINANCE, NOVEMBER, 1920. The month of November has continued the period of readjustment in business. Prices have continued their decline, the Board's general index showing a net loss for the month of 18 points. The activity of manufacturing in many lines has been still further reduced and there has been some increase in unemployment. There has been a corresponding reduction of buying power which is reflecting itself in a noticeable way in a lessening in the volume of trade, particularly in the volume of wholesale trade. While business failures have continued to increase as compared with a year ago, the total growth in assets of failed concerns has been moderate. Banks have been able to extend credit in reasonable volume, with the result that losses due to shrinkage of inventory values have been carried without producing an undue measure of commercial embarrassment. In the agricultural regions an outstanding feature of the month has been the retardation of the movement of products to market, which has resulted in a slowing down of collections and in a reduced liquidity of commercial paper. In some of the leading agricultural States bank failures have been reported. The general opinion of bankers and financiers is to the effect that the process of readjustment has been kept under control and has produced as little economic disturbance as might reasonably have been expected. It is impossible to estimate the extent to which the completion of the readjustment process may involve further slackening of employment or the increase of commercial embarrassments. Favorable elements in the immediate situation are the improvement in transportation conditions and the easing of credit conditions. Freight congestion is reported practically at an end and both staples and coal are moving steadily to market as shipped. In district No. 1 (Boston) there is an "unmistakably widespread curtailment of production," but the money situation is reported satisfactory. In district No. 2 (New York), while price declines and cancellation of orders have continued with "substantial interruptions and readjustments in many industries/' the orderly manner in which these readjustments have proceeded "has been greatly facilitated by the existence of the present machinery for the maintenance of credit flexibility." The volume of credit demand is falling off. In district No. 3 (Philadelphia) there has been "little change in the general condition of business" during the past month, but while factories have in many instances closed or reduced their time, "the retail trade is now making an encouraging beginning" in readjustment and "a ready response" to lower prices is manifested. In district No. 4 (Cleveland) "th,e physical difficulties that have tended to interfere with production have largely disappeared" and the chief obstacle to progress is found in the failure to bring about a thorough readjustment of prices. Iron and steel demand has been "tapering off." In district No. 5 (Richmond), despite reduction in prices and improvement in transportation, the month has shown "no pronounced developments." In district No. 6 (Atlanta) agricultural conditions have continued favorable throughout the district despite some shrinkage in yield as compared with previous prospects. Coal production has increased and there has been a beginning toward the more systematic financing of the export trade. In district No. 7^ (Chicago) "indices of business conditions point to a considerable letdown in general activity." Uncertainty prevails in many lines, while failure to bring about greater uniformity in prices is an obstacle to recovery. There is a lowering of cost of production and a reduction in the volume of employment. In district No. 8 (St. Louis) the tendency of business has been to slow down, with the readjustment movement gaining considerable momentum. The price recessions have given rise to some hesitation and uncertainty both on the part of merchants and the public. The yields of the leading agricultural products were large and "fall farm operations have progressed well." In district No. 9 (Minneapolis) the grain movement has continued favorable and the physical volume of trade increased as compared with September, although less than a year ago. Prices have still further declined, but financial conditions continue stable. In district No. 10 (Kansas City) the month has shown no "decided change in the tendency toward a general readjustment of business." Agricultural and other prices have fallen off there as elsewhere. In district No. 11 (Dallas) the general movement was a continuance of that of the preceding month, with further shrinkage in wholesale trade but with impr vement in retail trade and DECEMBER, 1920. FEDERAL RESERVE BULLETIN. collections. The sowing of winter wheat has increased and the movement of cotton has become heavier. In district No. 12 (San Francisco) agricultural prospects are favorable and the movement of products to market is proceeding normally. Retail trade is larger than last year or than during the preceding month. Some industries show curtailment, especially lumber and mining. General conditions in the district are still reasonably good. Harvesting of this year's large crops is nearing completion in most sections. Favorable weather nas aided materially in maturing and harvesting the crops. The rains which have been general have left the soil in good condition for seeding. In district No. 9 (Minneapolis) about 21 per cent of the corn is going into silage, while Montana is utilizing about 35 per cent of its acreage for forage and fodder and about 6 per cent for grazing. As frost did not appear until late, the corn is practically matured with very little damage. Some injury to corn is indicated in the unharvested lowland fields of Oklahoma, due to heavy rain. In all sections corn is of good quality. Seeding of winter wheat in district No. 8 (St. Louis) "is practically completed, and the early sown grain has made good growth and* ;is in fine condition to enter the cold weather.' On the Pacific coast "timely rains during October and early November have facilitated extensive sowing of winter wheat and have replenished power and irrigation reservoirs." While the production of tobacco this season is exceptionally heavy, there is more than usual of the low grades due to damage of different kinds. In Kentucky from 15 to 25 per cent of the Burley crop will be more or less affected, while in Tennessee the color is bad and the quality is rather low. It is generally reported that the farmers are dissatisfied with the price of tobacco, and this has manifested itself in a tendency toward slower marketing. The opening of the Burley tobacco markets, which usually occurs early in December, will probably be postponed until after the first of the year. Manufacturers of tobacco in district No. 5 (Richmond) report a slowing of demand from both domestic and foreign buyers. The weather generally has been favorable to the picking of fruits on the Pacific coast, and the rains have helped to size up the fruit. Carload shipments of navel oranges are already moving out of northern California. In district No. 11 (Dallas) the heavy rains in some sections have slowed up cotton picking and some damage has been done to the open cotton. "In many localities it is reported that picking operations will not be resumed until 1265 the open cotton goes through a period of sun bleaching to remove the effects of weather damage." In south Texas the harvesting of what is said to be the largest cotton crop on record in that section is nearing completion. Cotton picking is finished in Florida, and nearly so in Alabama, South Carolina, Mississippi, and Louisiana, but in upper Georgia the boll weevil has increased 50 per cent. In Oklahoma "the fields are still white with unpicked lint and less than half has been picked thus far." Opening of the bolls and picking have been retarded, but picking has been resumed, with the supply oi pickers still inadequate. Throughout the cotton section it is reported on the whole that there has been a heavily increased movement of cotton, but in district No. 5 (Richmond) a tendency has developed toward the forming of a crop-holding movement. The number of bales of cotton ginned prior to November 1, 1920, is considerably larger than for the corresponding period last year, the figures being 7,471,352 bales for 1920 and 6,305,054 bales for 1919. Receipts of live stock continue much lighter than last year, and the downward trend of live-stock prices in general continues. Receipts of cattle and calves at 15 western markets during October were 1,628,564 head, corresponding to an index number of 162, as compared with 1,736,009 head during September, corresponding to an index number of 172, and 2,317,487 head during October, 1919, corresponding to an index number of 230. Receipts of hogs during October were 1,836,748 head, as compared with 1,597,622 head during September and 2,160,079 head during October, 1919, the respective index numbers being 84, 73, and 98. October receipts of sheep were slightly less than during September, being 1,865,330 head as compared with 1,893,312 head, and 2,405,511 head during October, 1919, the respective index numbers being 136, 139, and 176. In all markets of district No. 10 (Kansas City), "with the exception of a heavy run of feeder lambs from Utah and Nevada to Colorado and eastern feed lots, the receipts of live stock have been light." At Fort Worth, October receipts of sheep .since 1910 have not been as small as they were this year. Heavy runs of live stock in district No. 9 (Minneapolis) are indicated from the West, and grass fed cattle predominated at all times. The quality of cattle received at South St. Paul is reported as the poorest for a number of years. From that district it is stated that "the demand for stock cars in the West has been very heavy, and serious complaint has been made of shortage in some places." All live-stock prices, except lamb and mutton, declined in that 1266 FEDERAL RESERVE BULLETIN. market in October and the declines continued into November. Downward price movements continued to feature the course of trade in district No. 11 (Dallas), although the market steadied toward the end of the month. While the limited supply of good corn fatted killers held prices to the highest levels of the year in district No. 10 (Kansas City), prices of all butcher grades were depressed during the early part of October, although subsequently rising, and the price of hogs reached the lowest figure of the year. Live stock in all sections is generally reported in excellent condition. In district No. 10 (Kansas City) "range and pasture conditions continue better than for some years past because of general rains.'' The abundant hay crop gives additional promise of winter and spring feeding, but up to the present time less stocks are reported as going to feed lots. In district No. 11 (Dallas) the ranges in Arizona, New Mexico, the Panhandle, and southwest Texas show a general trend toward improvement as a result of heavy rains, and the stock water supply has been replenished. In point of volume the movement of grain to market has been practically the same as last year, although the total crop is larger this year. In California, however, the decreased acreage during the season just past has been considered as the cause of low receipts, together with the long threshing season due to heavy rains, and the receipts are below those of last year. A factor in the present situation has been the continued decreases in the prices of the various grains. Thus in Minneapolis, No. 1 dark northern cash wheat was quoted on October 30 at $2.13J to S2.17J as compared with $2.35§ to $2,454 on September 30. In district No. 10 (Kansas City) the receipts of w^heat during October, while slightly larger than last year, showed a 20 per cent decrease from the heavy marketings in September. While this is attributed largely to the drop in prices, it is recalled that the slump in wheat receipts between September and October in 1919 was about 40 per cent at the markets of these districts. In Minneapolis total receipts of all grains during October, amounting to 25,367,870 bushels, were 6 per cent larger than in September and about 17 per cent larger than in October, 1919. Indications point to a speeding up of the movement in the case of wheat and flax. Wheat receipts during October were an increase of about 20 per cent over September, while receipts of flax more than doubled. "A year ago there was great difficulty in securing railroad equipment with which to move the grain. Complaints of difficulty in securing cars this year have been few and widely scattered.'' The following statement from district No. 10 DECEMBER, 1920. (Kansas City) fairly characterizes the situation throughout the grain belt as a whole: "The reports seem to indicate that a larger proportion than usual of farmers are holding wheat for marketing in the winter and spring or for higher prices, though it is apparent that many farmers are inclined to let as much of their wheat go at prevailing prices as will enable them to meet their financial obligations." Milling activity in district No. 10 (Kansas City) has decreased on account of the slow demand for flour. Mills in the district operated at 62 per cent of capacity during October, as against 86 per cent in October, 1919. Similarly, mills in district No. 9 (Minneapolis) are operating at about 50 per cent of capacity, as against about 75 per cent last year, although the output during the five weeks ending October 30 was 28 per cent larger than during the five weeks ending September 25. Flour movements were likewise greater in October than in September, although considerably less than during October, 1919. Combined shipments from Minneapolis and Duiuth during October were 2,378,773 barrels, as compared with 1,834,189 barrels during September and 3,481,899 barrels during October, 1919. Fluctuations in wheat prices at Kansas City had a somewhat depressing effect on milling activity. Heavy purchasing of flour was absent, even though prices were weaker, but there was a slight improvement at the end of the month. Flour prices have generally followed the trend of the wheat market, hard wheat patents on November 6 being quoted at Kansas City at $10.50 to $10.70, as against $11.30 to $11.45 on October 2. Business in St. Louis is of a handto-mouth sort, particularly in the south. Mill operation in the district from the middle of October on ranged from 40 to 50 per cent of capacity. "The dominant feature of the bituminous coal business," states the report from district No. 3 (Philadelphia), "is the fact that the situation has turned, with rather startling rapidity, from a problem of production and transportation to a question of markets." Prices are declining, the curtailment of industrial activity in some industries has cut down consumption, and the demand for export tonnage has fallen off considerably. Production in general has been well maintained throughout the country, amounting to 50,744,000 tons during October, as against 51,093,000 tons in September and 56,243,000 tons in October, 1919, the respective index numbers being 137, 138, and 152. In spite of the several holidays during November, production in general continues at a high level. The reports to the United States Geological Survey of loss of DECEMBER, 1920. FEDEBAL RESERVE BULLETIN. time on account of absence of market, however, indicated recently that "in general it may still be said that the market is sufficiently active to absorb all the coal offered for shipment," the only losses from this cause being west of the Mississippi. From Kansas City it is stated that while the demand for steam coal has softened to some extent since September, there has been no radical change in prices. In Alabama production has steadily increased in spite of the fact that the strike is still on in that field, and production is now only 25,000 tons under the usual output. The price of coke, both furnace and foundry, has fallen greatly. The market is characterized from district No. 3 (Philadelphia) as " sluggish," and production in district No. 4 (Cleveland) has fallen off somewhat. From district No. 6 (Atlanta), however, it is stated that prices "show but little change." Production of anthracite coal during October amounted to 7,645,000 tons, corresponding to an index number of 103, as compared with 5,125,000 tons during September and 8,459,000 tons during October, 1919, the respective index numbers being 69 and 114. There was a much sharper decrease in output at the opening of November than in the case of bituminous coal. Production to date is 3,750,000 tons less than last year, although prior to the strike it was 200,000 tons ahead of the output for the corresponding period of the previous year. A noticeable return to the anthracite mines of men who had drifted into other industries is reported from district No. 3 (Philadelphia). Trade sources state that independent operators still obtain "fancy prices." With respect to the situation regarding fuel for domestic use, householders' bins in district No. 8 (St. Louis) are rapidly being filled, while in district No. 5 (Richmond) there appears to be plenty of coal available for houses, although public utilities are operating on narrow margins. In district No. 10 (Kansas City) it is reported that uncertainty was felt during October concerning the prices of refined petroleum products. The demand for fuel oil from factories and steam plants is increasing, while the recent slump in the demand for kerosene is giving way under a stronger domestic demand for use in heating stoves. Gasoline is showing weakness because of large stocks laid in before the recent change in freight rates and a disposition on the part of certain refiners to make prices wind 1 will move gasoline, rather than to hold it in stock. The retail tank station business this year to date is reported as about 40 per cent larger than last year in the district. Apprehension is also reflected among operators and refiners over lack of interest in prospect- 1267 ing new fields, causing a lull in developments, although stocks are now increasing slightly. Production in Oklahoma and Kansas during October was 12,768,125 barrels, as compared with 12,023,250 barrels during September. Production in district No. 11 (Dallas) during October was 12,280,197 barrels, an increase of 790,687 barrels over the figure for September. " A marked improvement in drilling results was a noticeable feature in the district's oil industry." Wells completed during October in district No. 10 (Kansas City) numbered. 1,060, with a daily production of 95,738 barrels, as compared with 1,048 wells in September, showing a daily production of 83,917 barrels. In the face of falling prices and declining demand, production of iron and steel has been further curtailed. These tendencies have been noticeable, in particular in the case of the independent producers. Many companies have recently been operating at about 50 to 75 per cent of capacity, while some plants of special character, such as those producing material required by the automobile industry, are on an even lower basis. At the close of October, 28 more furnaces were idle than at the opening of the month, and this has been considerably increased during November. Consumers are hesitant, and operate on a hand-to-mouth basis. Specifications on existing contracts are more sluggish. Prices of pig iron have declined, being closely related to the decline in the price of coke. Lower prices are reported in the warehouse steel market. There has been a tendency to reduce the spread between quotations of independent mills and the minimum schedule. Exceptions are tubular goods, for which there is a heavy demand, and wire products, which are less active but are holding firm. A noticeable decrease in the demand for wire rope during the past four weeks is reported from district No. 3 (Philadelphia), due to a falling off in drilling operations and the condition of the lumber industry in the Northwest. Interest has centered recently in the announcement of the leading interest that no changes would be made in its minimum quotations under present conditions, and the announcements by leading independents of prices based on the minimum schedule. Structural steel orders during October were only 2 5 | per cent of capacity, and were the smallest since April, 1919. Conditions in the industry are reflected in the decline in the unfilled orders of the United States Steel Corporation, which amounted to 9,836,852 tons at the close of October, corresponding to an index number of 187, as compared with 10,374,804 tons at the close of September, corresponding to an index number of 197. 1268 FEDERAL RESERVE BULLETIN. Both pig-iron and steel-ingot production during October, however, were greater than during September, daily pig-iron production being somewhat larger and daily steel-ingot production somewhat smaller. The figure in the case of pig iron was 3,292,557 tons, as compared with 3,129,323 during September, the respective index numbers being 142 and 135. A lesser increase was remarked in the case of steel ingots, production rising from 2,999,551 tons in September to 3,015,982 tons in October, corresponding to index numbers of 124 and 125, respectively. The nonferrous-metal industries are also passing through a period of small demand and declining prices. Stocks of copper are reported large, and there has been curtailment of output by producers. Output of the metal in district No. 9 (Minneapolis) during October, according to reports from companies producing about 75 per cent of the total output of the district, was 94 per cent of the September figure and 67 per cent of that in October, 1919. It is stated that a decrease in export demand has affected the volume of production. Copper production in district No. 12 (San Francisco) is about 60 per cent of normal, certain mines in Arizona having ceased operations and others curtailed output. Lead has generally been believed to be in a somewhat better position than either zinc or copper. Producers in the Joplin district shut down their mills during the last two weeks of October, the shutdown being the most complete ever attempted in the district. Reports state that it is intended to run only three days a week, and as a result to do away with the large surplus stock maintained in the district since last year. The depression in the textile industries continues to manifest itself in further shutdowns and more extensive curtailments of working time. It is difficult to estimate the percentage of capacity in operation, as mills are working not only below capacity but on part time and some are closed for indefinite periods. One large New Bedford cotton mill reports operations at only 20 per cent of capacity, anocher at 44 per cent, while one of the largest Lowell corporations is running 60 per cent of its machinery for four days a week, and a large Maine mill is using 75 per cent of its machinery at one-half to two-thirds time. General estimates indicate that the cotton mills in district No. 1 (Boston) are operating from 30 per cent to 40 per cent of capacity and even so are manufacturing largely for stock instead of being engaged upon 'current orders. The United States Census reports that the amount of cotton consumed in the six New England States DECEMBER, 1920. in October was 133,140 bales, or 15,302 bales less than in September. The amount of cotton held in the mills at the close of the month was 463,369 bales, or 68,084 less than reported for September. In district No. 5 (Richmond) jobbers and retailers are said to be buying practically nothing. Cotton middling is selling at 17 cents on the markets of North and South Carolina. In district No. 3 (Philadelphia) no change in the cotton-yarn situation during the month has occurred. Apparently there is not sufficient buying demand to establish a market. District No. 1 (Boston) states that there is practically no demand for raw wool and consequently no stabilization of prices. South American wools are somewhere around prewar levels; domestic wools, although showing sharp declines from the peak prices, are nevertheless well above prewar levels. Curtailment of production persists in woolen mills as in other textile lines. It is said, however, that a certain amount of buying has recently been done by woolen mills in district No. 1 (Boston), although there is as yet no indication of renewed activity. District No. 3 (Philadelphia) asserts that demand for woolen yarns is virtually nonexistent. Reporting firms are either closed or operating at reduced capacity, the maximum for any reporting concern being 57 per cent of capacity. The goods are being produced chiefly for stock. In underwear lines the situation is-similar. District No. 3 (Philadelphia) says: " I t is doubtful whether more than 25 per cent of the productive capacity of the mills in this district is now being maintained." Statistics received from 20 reporting mills bear out this statement, as the value of the products manufactured by these mills fell 12.8 per cent during October as compared with September, while the latter month witnessed a decline of 27.5 per cent from August totals. The value of the output was 42.1 per cent less than in October a year ago. Unfilled orders at the end of the month were 71.2 per cent below the figures for a year ago, whereas at the end of September they wTere 47.6 per cent below the amount for the corresponding month of the preceding year. There were no records of orders booked during the month, and those already placed have been canceled to a great extent. Price revisions early in October were without effect and were discontinued. Carpet and rug manufacturers in district No. 3 (Philadelphia) are also faced with a similar situation—negligible current orders and extensive cancellations of those already placed. Many of these mills are closed while a few are running at anywhere from 25 per cent to 75 per cent of capacity. Reports received directly from 39 hosiery DECEMBER, 1920. FEDERAL RESERVE BULLETIN. firms in district No. 3 (Philadelphia') which sell to the wholesale trade show a decline of 69 per cent in the selling value of goods manufactured during the month of October as compared with October, 1919, while the value of finished products on hand at the end of the month is 98.2 per cent greater than a year ago, even at present selling prices. Unfilled orders on hand (selling price) at the end of the month show a diminution of 85.1 per cent as compared with October, 1919, and of 47.2 per cent as compared with the precedirg month. Orders are said to consist principally of requests for a few numbers to fill in broken lines. Operations are at a low ebb and there are many complete shutdowrs. Seven hosiery firms selling to the retail trade show reductions in value of output of 50.4 per cent as compared with October, 1919. There was an increase of 46.1 per cent in the value of finished products on hand at the end of the month, while unfilled orders (at the end oi the month) were 71.8 per cent less than in September. Statistics of unfilled orders for October a year ago are not available but the reduction in September orders at the end of the month as compared with September, 1919, was 71.6 per cent. Reports covering the month of October have been received from 33 firms belonging to the National Association of Finishers of Cotton Fabrics. The total number of finished yards billed during the month, including white goods, dyed goods, and printed fabrics, amounted to 46,233,000 yards as compared with 58,670,000 yards reported by the same firms for September. The average per cent of capacity in operation for all reporting districts was 33, but in district No. 1 (Boston) and No. 2 (New York) the returns averaged only 26 per cent and 27 per cent, respectively. In district No. 3 (Philadelphia) the average rose to 53 per cent. The total average number of days of work ahead for all reporting districts at the end of October amounted to 4.4 days, as compared with 6.9 days at the end of September. District No. 1 (Boston) reported an average of 2.6 days of work ahead; district No. 2 (New York) an average of 5 days, and district No. 3 (Philadelphia) an average of 6.8 days. Twenty-seven representative mills reporting to the Association of Knit Goods Manufacturers had unfilled orders amounting to 137,685 dozen at the beginning of October, as compared with 340,444 dozen on September 1. Production during October totaled 159,124 dozen, whereas 250,316 dozen were manufactured in September. Shipments were 113,446 dozen in October, 228,089 dozen in September, while cancellations amounted to 25?668 dozen and 26,089 dozen, respectively, 1269 Thus far there have been no indications of revival in the silk industry. The fact that this is normally a dull peiiod of the year, together with uncertainty as to the outcome of the attempts of the Japanese Government to stabilize prices, are mentioned as factors that contribute to stagnation. Prices of raw silk in New York are said to be about the same as the minimum established in Japan, Shinshu No. 1 selling for about $6.25 per pound. Stocks in local warehouses are said to amount to about 50,000 bales. District No. 2 (New York) says that at Paterson, N. J., during the week ending November 8, a total of only 90,920 loom hours was achieved, or 8.6 per cent of the maximum possible on the basis of a 44-hour week. Bradstreets announces that there have been 126 failures of small concerns in Paterson, while about 150 plants are closed. Manufacturers of men's clothing have announced reductions varying from 33 per cent to 50 per cent in the price of winter clothing. Rochester manufacturers have shown spring lines at prices 25 per cent to 33 per cent below those for the fall and winter, but so far few orders have been placed. As makers of women's suits and dresses have no surplus stocks, piices have not been reduced to the same extent. In the leather industry few changes have occurred during the month. No large orders for future delivery are being placed, chiefly because of the lack of demand from boot and shoe manufacturers. In consequence, quotations for hides and skins continue to drop. Kansas City quotations on hides are below the 1911-1914 average, while certain grades of hides are at the lowest level reached since 1905. On November 12 No. 1 wet salted hides sold in St. Louis at 7 cents per pound, as compared with 9 cents a month ago and 41 cents in 1919. According to the report from district No. 1 (Boston), however, several large tanning concerns have recently entered the market and are stated to have bought considerable quantities of raw stock. Tanneries in district No. 3 (Philadelphia) are being worked at greatly reduced capacity or else are closed down. In district No. 1 (Boston) the boot and shoe industry is said to be not over 50 per cent normal, and although reports from a majority of concerns making returns show orders somewhat larger than a month ago, they are principally for immediate sale. In district No. 3 (Philadelphia) the situation is about the same. District No. 8 (St. Louis) says that shipments of boots and shoes in October and during the first half of November were close to a year ago, but new business had declined anywhere 1270 FEDERAL RESERVE BULLETIN. from 40 per cent to 75 per cent, as compared with a year ago, and factory output had been reduced from 25 per cent to 40 per cent. There is considerable complaint of returns and cancellations. Further recessions in wholesale trade are shown by the statistics compiled from the returns made by firms in eight of the twelve Federal Reserve districts. As compared with October a year ago, the declines on the whole are much more general and much more pronounced, except in the case of hardware and drugs. But even in hardware lines recessions have occurred in districts No. 6 (Atlanta) and No. 12 (San Francisco), amounting to 8.8 per cent with 9 firms reporting in district No. 6 (Atlanta) and 4.4 per cent with 23 firms reporting in district No. 12 (San Francisco). On the other hand, increases in hardware sales reported by districts No. 3 (Philadelphia), No. 4 (Cleveland), and No. 5 (Richmond) are slight as compared with returns for a year ago, whereas in September they were considerably in excess of the sales for the same month of the preceding year. In wholesale groceries all reporting districts except district No. 12 (San Francisco), show declines in October sales as compared with October, 1919, while in the month of September only one district (Dallas) reported declines as compared with September, 1919. In district No. 3 (Philadelphia) 20 wholesale hardware dealers report a negligible decrease in the volume of net sales as compared with September, but sales are still 6.7 per cent above October, 1919. Total prices have not changed greatly, but collections are somewhat slower. Reports from 50 wholesale grocery firms in district No. 3 (Philadelphia) show net sales to be 11.1 per cent less than in September and 11.2 per cent less than in October, 1919. It is stated that declines are general and are not confined to a limited number of establishments. In district No.. 4 (Cleveland) declines in the volume of net sales of wholesale dry goods firms (4 firms reporting) and wholesale grocery firms (3 firms reporting) as compared with a year ago amount to 27.5 per cent and 10.8 per cent, respectively, while hardware sales have been maintained, being 2 per cent in excess of the levels of 1919. In district No. 5 (Richmond) decreases have been especially heavy in wholesale dry goods, sales being 40.5 per cent below September sales and 47.4 per cent below sales for October, 1919. Wholesale shoe lines, with 8 firms reporting, show declines of 16.3 per cent as compared with September and of 36.3 per cent as compared with, a year ago. In furniture lines, however, increases of 7.5 per cent and 12.2 DECEMBER, 1920. per cent, respectively, are recorded for 4 firms. Collections are reported to be about as satisfactory as they were a month ago. In district No. 6 (Atlanta) a decline has occurred in all four lines for which reports are received, namely, groceries, dry goods, hardware, and shoes, not only as compared with the preceding month, but also as compared with October, 1919. The average declines in sales of wholesale shoe firms dropped 36.4 per cent from the preceding month and 32 per cent from the totals of a year ago, while the declines for wholesale dry goods dropped 38.8 per cent and 46.2 per cent, respectively. In groceries the decline was slight as compared with September, being only 1.3 per cent, but amounting to 26.1 per cent as compared with October, 1919. There is said to be little buying for spring requirements in any line reporting. In district No. 7 (Chicago) declines are recorded as compared with October, 1919 for dry goods, shoes, and groceries, amounting to 34 per cent for dry goods, 13 firms reporting, 32.6 per cent for shoes, 9 firms reporting, and 15.2 per cent for groceries, 25 firms reporting. In district No. 10 (Kansas City) reductions in the volume of sales for reporting grocery, hardware, and furniture concerns are found both as compared with October, 1919, and with the preceding month. In district No. 12 (San Francisco) all reporting lines showed declines in net sales as compared with September, the declines being greatest in automobile tires and dry goods, amounting to 18.8 per cent and 17.5 par cent, respectively, while in wholesale drugs and groceries the declines were only 1.3 per cent and 2.3 per cent. On the other hand, although sales as compared with the preceding year were less in automobile tires, shoes, dry goods, hardware, and furniture lines, increases were reported in stationery, drug, and grocery lines, amounting to 21.9 per cent in the case of stationery, 12 per cent in drugs, and 9.6 per cent in groceries. Current unfilled orders are reported to be much smaller in the stationery business. In retail trade the "reduction sales'7 which were prominent in some districts during September became somewhat general during October, but in some sections these sales are still ''spotty." Cold weather in most sections has stimulated the buying of clothing, but in general the usual seasonal demand is still lacking. There is generally reported a decided determination on the part of the public to wait until prices come down, and this is characterized by some as a "consumers' strike." Stores generally are reducing stocks and making no attempts to replenish them. Outstanding orders are declining, and retailers are ordering DECEMBER, 1920. only what is needed to meet day-to-day requirements. While prices are slowly but generally declining, it is still felt that present declines have not paralleled declines in wholesale prices. ''Shoppers'7 are confining buying to necessities and staples. There is a tendency for retailers, according to the majority of reports, to endeavor to realize on goods at as near the present level of prices as possible. The holiday trade is generally expected to move a considerable part of the present stocks. The volume of trade in general has been better oiaintained in the case of department stores bhan in the case of stores dealing in special commodities only. The volume of trade during October as compared with October, 1919, differs somewhat in the different districts. In district No. 1 (Boston) there is no change, but in district No. 2 (New York) it has increased, and likewise in district No. 6 (Atlanta), with the exception of the city of Atlanta. In district No. 10 (Kansas City) a decrease of 1.03 per cent is shown, and in district No. 9 (Minneapolis) a decrease of 3.2 per cent, while in district No. 11 (Dallas') the increase is roughly 16 per cent, and in district No. 12 (San Francisco), 8.2 per cent. October and early November price changes were more general a* d extreme than for any other period since the readjustment in prices commenced. The Board's index number registered 208 in OctoberT as compared with 264 in May, when prices w ere at their peak, and 226 in September. The radical change between September and October was due to the weakening in iron and steel prices, which had previously remained firm, and the more extreme revisions m cereal, textile, lumber, and nonferrous metals prices. By November 20 reductions had been made in bituminous coal prices, and here and there cement, brick, and paper showed signs of weakening. Instability of price was marked in practically all commodities during this period. Even in those industries where large reductions had been made earlier in the year there was apparently little confidence in existing values. Where the revision in prices has only just begun this feeling of uncertainty is equally prevalent. Industrial inactivity accounts in large measure for the revisions" in coal, iron and steel, and other metal prices. The decline in export trade is at least in part responsible for the tall in prices of cereals, meats, cotton, lumber, and copper. Surplus stocks in such lines as wool and copper have helped to bring about the revisions in these commodities. Although all reports indicate that retail prices in particular lines have been cut, it is generally admitted that revisions have not 1271 FEDERAL RESERVE BULLETIN. been made on the same scale as in wholesale trade. So far there is no evidence of a revival of activity in the lumber industry, as contracts continue to fall off and new orders to decline in volume, despite price recessions. In district No. 1 (Boston) some lumber mills have closed down entirely and curtailments are general in the absence of demand. Prices are said to be from 25 per cent to 40 per cent below previous levels. In district No. 6 (Atlanta) a number of mills are closed, shipments are exceeding orders and production, and stocks are being reduced in consequence. The 143 mills belonging to the Southern Pine Association reporting from district No. 6 (Atlanta) have a normal weekly production of 90,837,000 feet, but the output for the week ending October 29 was only 58,665,000 feet, or 35.4 per cent below normal, while shipments amounted to 60,939,000 feet and orders,' 44,673,000 feet. District No. 8 (St. Louis) estimated on the basis of data on hand that 50 per cent of the mills in the Mississippi Valley had closed. The market for hardwood wras reported to be inactive and there was a great spread in prices for yellow pine. In district No. 9 (Minneapolis) special reports from 13 lumber manufacturers giving cut, stocks, and shipments show that lumber cut and shipments declined while stocks increased. There has been a marked decrease in unfilled orders. The combined statistics (given in thousands of board feet) are as follows: Lumber cut Stocks Shipments i October. September. | 23,882 I 154,622 | 11,260 24,853 141,431 16,602 Per cent, October October, 1919. of September. 98.1 109.2 67.8 134,478 28,338 Per cent, October, 1920, of October, 1919. 99.5 115.0 39.7 Thirty-two reporting mills in district No. 11 (Dallas) belonging to the Southern Pine Association, which have a normal weekly output of 20,116,000 feet, reported an average weekly cut of only 12,058,000 feet for the four-week period ending October 29, and shipments amounting to 11,982,000 feet. Unfilled orders amounted to slightly more than two weeks' normal production, or 43,101,000 feet. Reports from the four associations of lumber producers in district No. 12 (San Francisco) show continued inactivity in the industry. It is stated that railroad buying, principally of ties, and California requirements constituted the principal items for northwestern lumber. Figures of cut, shipments, and orders (in 1272 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. thousands of board feet) of the associated mills 1919. In Philadelphia the value of building in district No. 12 were as follows: permits was $4,840,000 in October, 1919, and $2,590,000 in October of this year. In district No. 4 (Cleveland) building permits for new West Coast LumberWestern Pine Manumen's Association. facturers' Association. construction amounted to 479 in number, with a total value of $6,028,000, in October, I Four weeks Preceding Four weeks Preceding whereas 2,596 permits were issued in ending four weeks. 1920, I ending four weeks. Oct. 23. Oct. 23. October, 1919, with a total value of $13,869,000. Permits for repairs and alterations 32 36 Average number I 120 123 were slightly in excess of those for 1919 in point of value. Declines in the valuation of 102, 763 permits have been general in district No. 5 286,440 274,685 103,806 Cut 233,220 65,340 235,356 53,745 Shipments 202,008 33,075 (Richmond), as compared with a year ago, the Orders 213,315 32,625 totals for new construction and repairs in 22 cities of the district being $8,504,000 in OctoCalifornia White and California Redwood Sugar Pine ManufacAssociation. ber, 1919, and only $4,453,000 in October, turers' Association. 1920—a drop of 47.6 per cent. In permits for alterations there was a slight increase, from Four weeks Preceding Four weeks Preceding ending ending $1,178,000 to $1,409,000. In district No. 6 Oct. 23. four weeks. Oct. 23. four weeks. (Atlanta) decreases in the valuation of permits are reported from a majority of cities 8 Average number 10 10 8 from which returns are secured. Of the 33 cities reporting in district No. 7 (Chicago), 38,821 26,029 43,529 24,906 Cut . 14,336 16,059 17,626 only five show an increase in the value of per17,113 Shipments 22 605 9,185 19,388 12 789 Orders mits as compared with October, 1919, the decrease being in excess of 60 per cent in the Furniture factories in district No. 5 (Rich- majority of cases. Very little building is mond) are receiving few orders. They are in progress in district No. 8 (St. Louis), the either shut down or running below normal, five leading cities showing sharp declines in while in district No. 8 (St. Louis) buying is value of permits issued, as compared with confined almost exclusively to buying for im- a year ago. In rural districts, it is said, mediate use. Jobbers and retailers are placing new building has been either postponed or abandoned. The situation in district No. 9 no orders for stock. As might be surmised from the lack of de- (Minneapolis) is rather unusual in that permand for lumber and other building materials, mits granted in the 9 largest cities increased further general declines in building activity 5 per cent in number and 43 per cent in value are noted in October. In district No. 1 for September, but the volume was nevertheless (Boston), with the exception of Hartford, only about 75 per cent that of October, 1919. Manchester (New Hampshire), and Fitchburg, A very heavy increase in Sioux Falls, where all 12 reporting cities show decreases in the permits were valued at $429,000 in Septemvalue of permits issued as compared with ber, has markedly affected the average. October, 1919. Exceptional construction work Actual total values for all 9 cities were in Hartford and Manchester raised the total $3,311,000 in October, $2,312,000 in September, valuation, however, above the figures for the and $4,304,000 in October, 1919. In district same month last year. Applications for build- No. 10 (Kansas City) there was an increase ing permits, including alterations and repairs, in building operations as compared with in 36 cities in Massachusetts were 27.3 per cent September, but total valuations in October less in October than in September, falling from were 48.7 per cent below the corresponding $6,269,000 to $4,558,000. In district No. 2 totals for October, 1919, for the 17 reporting (New York) contracts for buildings, as reported cities. In district No. 11 (Dallas) a large numby the F. W. Dodge Co. for New York State be of permits was issued in October, but the and northern New Jersey, amounted to $49,- valuation was smaller than for the preceding 207,000 in October, as compared with $59,- month. For the district as a whole there has 818,000 in September. District No. 3 (Philadel- been a decrease of 60.1 per cent in the value phia) reports that the total number of permits of permits as compared with October, 1919, issued amounted to 2,310 in October, as com- the actual totals being $6,526,000 and $2,respectively. Of the 9 reporting ared with 1,190 for the same month a year ago. 604,000,only Beaumont registers an increase, Istimated cost of construction was $4,804,735 cities, Galveston showing a decline of 76.2 per cent, in October, 1920, and $8,246,000 in October, g DECEMBER, 1920. FEDERAL RESERVE BULLETIN. Houston 64.8 per cent, and Dallas 57.2 per cent. The falling off in building activity, which was only apparent in the Pacific Northwest in September, became general throughout district No. 12 (San Francisco) in October. Building permits in the 19 principal cities averaged 15.8 per cent less by value and 9.9 per cert less in number than for the preceding month, the decrease being less pronounced, however, in the interior than on the coast. There was an increase, as compared with October, 1919, of 18.1 per cent by value and 29.5 per cent in number of permits issued. In the industrial sections of the country unemployment continues to increase and has assumed large proportions in the textile districts and in centers of boot and shoe manufacture. In some parts of the country wage decreases have accompanied the decline in employment, while elsewhere reductions of wages have not yet been much in evidence. Massachusetts official statistics on unemployment as of September 30, based upon returns from 1,103 trade-unions with a membership of 255,000, show that the percentage of unemployment in the textile industry was then 26.3 per cent, and in boots and shoes 40.9 per cent. The total percentage for the State was 19.3 per cent of union membership, the highest since March, 1908. Wage reductions of 15 per cent to 20 per cent in textile plants in many New England centers are also reported, although recently the Manufacturers' Association of Fall River and the Textile Council agreed upon the maintenance of existing wage schedules following the expiration of the present agreement. In district No. 2 (New York) it is estimated that there was a decline of about 5 per cent in the number employed in November as compared with the preceding month. This estimate is based on preliminar}^ figures from the New York State Industrial Commission, supplemented by data obtained from employers and labor unions. The New York State Industrial Commission finds that while 358,806 persons were employed in factories in a selected list of industries on August 1, there remained only 212,616 on November 10, a decrease of 146,190. However, as the intention was to select those industries which had been most affected by declines in business activity, the statistics have to be taken with reservations. In Paterson, N. J., 25,000 silk workers are reported to be unemployed. In district No. 3 (Philadelphia) unemployment is increasing in many lines, notably among textile mill workers. In district No. 4 (Cleveland) there is also increasing unemployment. In district No. 5 (Richmond) u there is a marked increase in unemployment of both skilled and unskilled labor." A num- 1273 ber of cotton mills in North and South Carolina have reduced wages about 15 per cent. In district No. 7 (Chicago) unemployment is increasing in automobile centers, while a considerable number of the 45,000 garment workers in the district are idle for at least part of the time. District No. 8 (St. Louis) reports a surplus of labor in practically all lines, but more particularly in lumbering, transportation, clothing, and shoe manufacturing. Wage reductions, however, have been insignificant. District No. 10 (Kansas City) does not think that unemployment is greater than usual for the season, and district No. 12 (San Francisco) reports little more than customary unemployment, with no unemployment of skilled labor reported, although there is a decrease in the labor turnover. In the agricultural regions, on the contrary, the supply of labor has not been excessive in relation to the demand. Indeed, in some parts of the country reports of shortage are still heard, while wages have been generally maintained at a high point. Cotton pickers and corn huskers are scarce in district No. 5 (Richmond). It is reported from district No. 6 (Atlanta) that farm labor in Louisiana is barely sufficient to harvest the crops, while district No. 12 (San Francisco) says that in the Mesa, Phoenix, and Yuma sections there is a shortage of cotton pickers. Financial developments during the month have shown stability and successful readjustment to conditions. The outstanding development has been a reduction of rates of interest both on call and time funds and to a moderate extent for commercial paper. Some decrease in the demand for bankers' acceptances has occurred, although a considerable number of new customers in this field have been noted in the financial centers. Country banks have been active buyers of commercial paper during the month. As was to be expected, a curtailment has occurred in the amount of interreserve-bank rediscount operations, and despite the withholding of crops from market in some parts of the West the process of liquidating farmers' obligations and of moving the funds to the cities to meet obligations there has made some progress. The season has been characterized by the heavier volume of applications made by out-of-town to city banks for advances, but with the approach of the end of the year some relative lessening in the volume of these requirements is naturally observed. Foreign exchange during the month has been unsettled and irregular. Quotations for sterling, francs, and lire have on the whole tended downward, although from time to time there have been reactions toward higher levels which, however, were usually not long main- FEDERAL RESERVE BULLETIN. SPECIAL REPORTS. CONDITION OF WHOLESALE TRADE. Percentage of increase (or decrease) in net sales in October, 1920, as compared with the preceeding month. Boots and Groceries. Dry goods. Hardware. shoes. No. No. No. No. No. No. No. No. 3.. 4.. 5.. 6.. 7.. 10. 11. 12. Auto supplies. No. No. No. No. No. No. No. No. 3 4 5 6 7 10 11 - 2 . 6 12 1.3; 5 + 4.0 6 4 — 11.5 3 | © -34.0 2 i —18.8 17 Percentage of increase (or decrease) in net sales in 1920, as compared with October, 1919. Groceries. Dry goods. | Hardware. Shoes. 9.2 1.3 -11. - 8. - 2.3 - 2 . 2 -40. i -34.0 27 - 1 7 . 5 20 -9.2 -10.2 . . . -14.0 4|... 1 2 - 3.9 -16.3 -36.4 23 8+ 7.5! 5 1. ...-21.0| . . . - 9. 0 12 - 8. 7! 13 October, Furniture. Dis- ! triet. ! 1 ; s No. 3.. No. 4.. No. 5.. No. 6.. No. 7.. No. 10. No.11. No.12. 11.2 10. 8.2 26.1 15.2 26.0 17.0 Drugs. -27.5 -47.4 -46.2 -34.0 -19.0 231-15.4 .. + 6.7 4+2.0 7 + 6.3 7 - 8.8 13 . . . . . ! - 2.0 4... 1 2 - 4.4 Auto supplies. 201. l 36.3 32.0 32.6 23-22.21 8+12.2 -20.0 -24.0 -4.2 No. 3 No. 4 No. 5. No. 6 No. 7 No. 10 No. 11 + 15.0 No. 12 + 12.0 3 2 19 Farm imStationery. plements. Auto tires. District. -11.1 mber of firms. cent. • 1 mber of firms. Per cent. 1 Stationery. mber of firms. cnet. District. Number of firms. Drugs. Furniture. District. 1920. Percentage of increase (or decrease) in net sales in October, 1920, as compared with the preceding month—Continued. Per cent. tained. Continued heavy exports of staple products have thrown upon the market large volumes of bills which, together with the overhanging balance of exchange carried upon the books of foreign banks and business houses, have tended to prevent the market from reacting in any prominent or sustained way to higher values. There has been a decline in the activity of debits to individual deposit account in the clearing-house banks reporting to the Board, which may be interpreted as reflecting the lessened volume of general business. Investment demand has been lower and declining prices for stocks have tended to discourage buyers of securities. The situation in the stock market has been parallel to the condition prevailing in commodity markets generally, liquidation in the one being reflected in heavier selling and a lower level of values in the other. In export trade the outstanding feature of the month has been seen in the growth of cancellation of orders, expecially from South American points, which has tended to subject export enterprises to uncertainty. One effect of this situation has been to cause banks to exercise greater caution in connection with the purchase of drafts. Nevertheless the total volume of exports has been tolerably well maintained as a result of the large movement of staples to foreign and especially to European ports. DECEMBER, mber of firms, 1274 -50.0 5+5.0 +21.9 18 -27. DECEMBER, PRODUCTION REPORT OF THE KNIT GOODS MANUFACTURERS OF AMERICA. Total production of winter and summer underwear for the 6 months ending Oct. SI, 1920. Per Number Actual of mills produc- cent of norreporttion ing. (dozens). mal. May June July August September. October... 48 54 57 64 63 62 678,287 560,034 583,190 585,071 606,257 393,422 82.2 80.3 73.4 67.3 74.2 50.4 Order and production report for month endiivj Oct. SI, 1920. Number of mills reporting 29 Unfilled orders first of month (dozens) 148,898 New orders received during m o n t h (dozens) 79,438 Total (A) (dozens) 228,336 Shipments during m o n t h (dozens) 123,882 Cancellations during month (dozens) 28,017 Total (B) (dozens) 151,899 Balance orders on hand Nov. 1 (A minus B) 76,437 For the month {33 mills). Dozens. Orders Shipments... Cancellations. Production... 1275 FEDERAL RESERVE BULLETIN. 1920. 79,438 123,882 28,017 183,711 Per cent of actual production. 25.4 39.6 58.7 Twenty-seven representative mills which reported for September and October furnish the data for the following tables: [In dozens.] Unfilled orders first of month.. New orders Shipments Cancellations Production epte September. October. Loss. 340,444 17.662 228,089 26,089 250,316 137,685 44,650 113,446 25,668 159,124 202,759 Gain. 114,643 421 91,192 FINISHED COTTON FABRICS. The National Association of Finishers of Cotton Fabrics, at the request of the Federal Reserve Board, have arranged for a monthly survey within the industry. The results of the inquiries are herewith presented in tabular form. Mr. H. E. Danner, secretary of the association, makes the following statement concerning the tabulation: The accompanying figures are compiled from statistics furnished by 33 out of 59 members of the National Association of Finishers of Cotton Fabrics. It is probably fair to state that in the absence of having specific detail at hand, but according to our best estimate, it is probably well within the fact, that the figures given for the various classes of work would cover approximately the following percentages of the entire industry: White goods, 70 per cent; dyed goods, 60 per cent; printed goods, 30 per cent. The figures given represent reports from exactly the same finishers for the two months, both for the totals and for the subdivisions, and therefore are strictly comparable. NOTE.—Many plants were unable to give details under the respective headings of white goods, dyed goods, and printed goods, and reported their totals only, therefore the column headed "Total" does not always represent the total of the subdivisions, but is a correct total for the district. 1276 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. Production and shipments offinishedcotton fabrics, by Federal Reserve districts. f [ Total finished yards billed during month: District 1 ". 2 3 5 6 8 Total Totalfinishingcharges billed during month: District 1 2 . . . 3 5 6 § Total . . . Total average per cent of capacity operated: District 1 2 . . 3 5 6 8 Average for all districts Total gray yardage offinishingorders received: District 1 2 . .• . . . . 3 5 6 8 . ; . . . . Total Number of cases of finished goods shipped to customers (case equal approximately 3,000 vards): * District 1 . . . . 2 3 5 6 8 . . . .. Total Number of cases of finished goods held in storage at end of month: District 1 ... 2 3 5 6 8 Total Total average work ahead at end of month, expressed in days: District 1 2 3 5 6 8 Average for all districts i i September, 1920. October, 1920. White goods. Dyed goods. Printed goods. Total. White goods. Dyed goods. Printed goods. 10,384,678 2,081,937 6,035,052 4,767,537 37 665 11,624,175 787,792 4,746,897 94,582 986 093 9,690,103 551,127 33,813,789 6,573,892 10,781,949 4,862,119 1,023,758 1,614,872 8,013,004 1,991,749 6,656,895 4,250,307 25,460 9,014,636 625,529 3,695,909 50,957 523,846 4,924,251 459,240 23,220,197 5,670,189 10,352,804 4,301,264 549,306 2,140,077 23,308,869 18,239,539 10,241,230 58,670,379 20,937,415 14,910,877 5,383,491 46,233,837 $224,537 41,812 234,695 98,185 749 $497,744 26,746 183,467 1,835 37,813 §650,320 25,101 $1,558,885 192,546 434,134 100,020 38,562 27 693 $187,368 40,120 256,829 88,961 561 $415,783 25,294 135,549 783 21,087 $308,059 13,639 $998,242 155,732 406,795 89,744 21,648 33,978 599,978 747,605 675,424 2,351,840 573 839 598, 496 321,698 1,706,139 46 41 82 74 34 19 30 31 47 36 j 33 i 53 74 59 72 32 35 82 55 30 13 31 20 42 26 27 53 55 33 81 57 31 34 41 46 28 23 33 8,819,825 2,398,403 6,518,929 3,658,050 31,895 7,771,112 903,225 2,963,242 47,251 256,330 3,743,385 1,564,039 21,688,638 5,802,899 9,991,674 3,705,301 288,225 2,291,351 6 197 932 774,917 4,678,913 1.928,287 31,308 6,158,694 632,377 2,740,454 134 135,095 2,282,297 349,596 15,610,148 3,030,898 7,902,503 1,928,421 166,403 1,801,109 21,427,102 11,941,180 5,307,424 43,768,088 13,611,357 9,666,754 2,631,893 30,439,480 3,366 1,066 2,314 1,729 3,101 2,027 16,141 2,940 4,299 2,588 2,709 856 2,136 1,915 2,536 1,169 12,193 2,589 3,867 2,551 8,475 4,624 2,027 26,204 7,616 3,996 1,169 21,402 4,417 1,106 451 544 4,990 4,261 23,493 4,128 5,812 1,980 5,021 1,133 500 510 5,416 4,051 24,235 4,226 5,957 2,164 6,518 5,339 4,261 36,077 7,164 5,771 4,051 37,703 6.2 15.2 13.9 10.9 4.1 2.9 7 0 6.9 19.0 5.3 8.0 9.9 10.9 2.6 16.0 4.2 10.6 10.0 13.0 2.1 1.9 4.8 1.4 10.0 2.6 5.0 6.8 13.0 2.3 20.0 9.4 4.5 8.7 6.9 7.3 2.6 2.6 4.4 1,520 1,460 236 349 Total. 202 355 1,121 664 DECEMBER, 1920. 1277 FEDERAL RESERVE BULLETIN. The work of the conference was divided into THE INTERNATIONAL FINANCIAL CONtwo parts—first, the presentation of statistical FERENCE AT BRUSSELS. The financial conference, called by the Council of the League of Nations originally for July 23 at Brussels, was finally held on September 24, and lasted from that date until October 8. Delegates were sent not only from the countries which are members of the league but also from former enemy countries with the exception of Turkey, and from certain of the newer States, including Finland, Luxemburg, Esthonia, Latvia, and Lithuania. Russia did not send delegations and the United States was only unofficially represented. The difficulties which have of late exhibited themselves in American foreign trade give a special interest to the outcome at the Brussels conference, detailed information concerning which has only recently been received in the United States/ There are presented herewith the outstanding facts concerning the action of the conference. Of particular interest in this connection are the reports of the four committees which offered carefully prepared results of investigation and discussion, while among the various schemes laid before the conference, that of M. Ter Meulen, of Holland, is the one which has apparently received most approval from American observers. As will be noted from the digest of the findings of the conference, the essence of the plan of M. Ter Meulen—as indeed that of various other students of the situation—is found in the segregation of assets which form the basis of government guaranties and which, therefore, afford to foreign lenders about all the security that they could possibly expect to get under any conditions. The merit of the discussions at the Brussels conference would seem to be chiefly in the fact that they recognized the necessity of putting advances of capital into the form of long-term investments and were prepared to ascertain the kinds of protection for such investment which would to the best advantage and in just measure tempt foreigners—especially Americans—to purchase securities whose proceeds might be used in paying for raw materials and fixed capital needed by the borrowing countries. The Brussels conference having no definite authority to do more than recommend, the final decision in the matter is practically before the League of Nations, which from November 15 onward, was in session at Geneva. As was recognized throughout the Brussels conference the principal obstacle to obtaining any very definite settlement of the issues at stake before that conference was found in the fact that neither the amount nor the method of paying the German indemnities had been determined upon. statements regarding the economic and financial conditions of the countries represented, and, second, the conferences of the various commissions assigned to specific problems. For the purposes of reporting, the members of the conference were divided into the following six groups: First, neutrals; second, continental allies; third, conquered nations; fourth, new nations; fifth, England, the British Empire, and Japan; sixth, miscellaneous. Four committees were appointed for the purpose of developing the conclusions of the conference on the following subjects: (1) Public finance; (2) currency and exchange; (3) international trade; (4) international credits. The question of reparations and interallied war debts were excluded from discussion at the conference. Preliminary to the meeting of the conference memoranda were prepared by economists in various countries and submitted to the conference for its consideration. Prof. G. Cassel, of Stockholm, presented a memorandum on The World's Monetary Problems. The recommendations of M. Ter Meulen, of Holland, were for the most part accepted by the Commission on International Credits and incorporated in its resolution. Closely related to M. Ter Meulen's recommendation is that of M. Delacroix, former prime minister and minister of public finance for Belgium, in his memorandum proposing the establishment of an international bank. An analysis of the difficulties connected with the problem are set forth by Prof. A. C. Pigou, of Cambridge. Excerpts from Prof. Cassel s report are published below: WORLD'S MONETARY PROBLEMS. (By Gustav Cassel.) THE PROCESS OF INFLATION. The war has been financed by all countries involved, to a great extent, by means of creating more money, which has been, more or less directly, handed over to the exchequer, partly in the form of new issues of bank notes or State paper money; partly in the form of extended bank credits, which could be used as means of payment. The latter method has indirectly caused a corresponding increase of the circulating medium of exchange to satisfy the increased demand for cash for smaller payments; for the proportion between the payments in bank credits and those in cash has, as stated above, been pretty constant as determined by the customs of each people. The result of the creation of new money has been, in both cases, that a new buying capacity has been put at the disposal of the Government. The total buying capacity of the community having in this way been increased without a corresponding increase in the commodities to be bought, a general rise in prices has followed. With higher prices, the need for means of payment has been increased proportionally, and the mass of the medium 1278 FEDEKAL RESERVE BULLETIN. of exchange which could be kept in circulation has, therefore, at every time been proportional to the general level of prices. But the primus motor to the enhancement of prices has always been the creation of an artificial buying capacity. Under normal conditions, it should be observed, a fresh buying capacity is created only by production and marketing of commodities and services of a corresponding value, and such buying capacity does not tend to raise prices. As artificial, we must then denote a buying capacity which is not based on such production and which must, therefore, lead to a rise in prices. * * * However, Government finance is not the only factor to be taken account of in the process of inflation. Every extension of bank credits beyond the limit set by the fresh savings put at the disposal of the banks is apt to cause inflation. A certain restriction of the credit giving of the banks is therefore always necessary. This restriction is achieved partly by discriminating between the demands for credit, partly by a reduction of their amount, and partly by the rates of discount or interest charged. Where these means are not applied with sufficient severity the credit giving will involve the creation of artificial buying capacity; and if such practice is made possible by a supply of legal tender adapted to it, the result must inevitably be an inflation of the currency. This is in fact what has been going on since the war in a good many countries. * * * In all countries the rates of discount of the central banks have been kept far beneath the heights which would have corresponded to the extraordinary scarcity of capital caused by the war and by extravagant State expenditure after the war. The rate of interest has, as all other prices, the fundamental function in social economy of restricting demand so far as the limited supply requires. With a too low rate of interest the equilibrium of the capital market is disturbed, and a need for artificial restriction of the demand for capital arises, expressing itself in schemes for bureaucratic control of the use of capital, "rationing of capital," etc. Such means are always more or less pernicious for the wholesome growth of economic life, but they are seldom effective enough to bring about the necessary restriction of the demand for capital. And as long as the banks, and ultimately the central bants, have to meet greater demands than can be satisfied by real savings, an arbitrary creation of bank money is inevitable. Thus the result of an endeavor to keep down the bank rate beneath the point which the real scarcity of capital would require must always be an inflation. * * * INTERNATIONAL EXCHANGES—PURCHASING PO'.VER PARITIES. Given a normal freedom of trade between two countries A and B, a rate of exchange will establish itself between them and this rate will, smaller fluctuations apart, remain unaltered as long as no alterations in the purchasing power of either currency is made and no special hindrances are imposed upon the trade. But as soon as an inflation takes place in the money of A and the purchasing power of this money is therefore diminished, the value of the Amoney in B must necessarily be reduced in the same proportion. And if the B-money is inflated and its parchasing power is lowered, the valuation of the A-money in B will clearly increase in the same proportion. If, e. g., the inflation in A has been in the proportion of 320 to 100 and the inflation in B has been in the proportion of 240 to 100, the new rate of .exchange will be threefourths of the old rate (approximately the case of England and the United States). Hence the following rule: When two currencies have been inflated, the new normal rate of exchange will be equal to the old rate multiplied by the quotient between the degrees of inflation of both countries. There will, of course, always be fluctuations DECEMBER, 1920. from this new normal rate, and in a period of transition these fluctuations are apt to be rather wide. But the rate calculated in the way indicated must be regarded as the new parity between the currencies. This parity may be called the purchasing power parity, as it is determined by the quotient of the purchasing powers of the different currencies. During the war the buying capacity of the different monetary standards has, owing to the over-abundant supply of means of payment, been much reduced, though in very different proportions. Consequently the purchasing power parities have undergone very important alterations and are now quite different from the parities which were in force before the war. There is no reason to believe that exchanges will ever be restored generally to their old parities. These old parities have, in fact, lost their old significance and can no longer in any respect be regarded as normal. The constant references still made to them are a most serious hindrance against a clear understanding of what has really happened to the world's monetary standards. In statistics likewise it is only confusing to retain the old custom of converting foreign money on the basis of the prewar parities. The purchasing power parities represent the true equilibrium of the exchanges, and it is, therefore, of great practical value to know these parities. It is, in fact, to them we have to refer when we wish to get an idea of the real value of currencies whose exchanges are subject to arbitrary and sometimes wild fluctuations. Every care should therefore be taken to ascertain the rate of inflation of each country, as measured by the increase of circulation or by the rise of prices, and from these data calculate the purchasing power parities of the different currencies. Such figures, based on monthly mean inflation in different countries ought to be laid before the world some few days after the end of each month. * * * ABNORMAL DEVIATIONS OF THE EXCHANGES. In the earlier part of the war, when a certain amount of freedom still was left for international trade, the actual rates of the exchanges used to coincide fairly well with the purchasing power parities. But later the sharp restrictions of the trade between nations have often distorted the exchanges from these parities. If trade between two countries is more hampered in one direction than in the other, the value of the money of the country whose export is relatively more restricted will fall, in the other country, beneath the purchasing power parity. This result is only in accordance with our general conception of the rate of exchange as an expression of the valuation of a means of securing the supply of foreign commodities; if this supply is made artificially difficult, the actual value of the foreign currency must sink in proportion. There are many instances of such abnormal deviations of the exchanges. Thus, the inflation in the United States has without doubt been much smaller than in Sweden, and the dollar has kept much more of its old purchasing power than the Swedish crown. The purchasing power parity must therefore have risen considerably above the old parity of kroner 3.73 for the dollar. But the actual rate fell, during the time of the severest war restrictions of American exports to Sweden, far beneath this old parity, the mean monthly rate for November, 1917, being as low as kroner 2.55. As soon as the restrictions were removed, the dollar exchange rose to a height corresponding to the purchasing power parity and even for a short time above it. The explanation of the temporary undervaluation of the dollar is to be sought in the absence of any immediate employment for dollars in Swedish possession. * * * We can imagine ^ several other factors which might depress the international value of a currency beneath its purchasing power parity. But if there is no special hindrance against export from a country, every undervaluation of its currency will obviously call forth an increase of its export tending to counteract this under- DECEMBER, 1920. FEDERAL RESERVE BULLETIN. valuation. For as soon as the currency of a country is undervalued in comparison with its purchasing power parity there will be a special profit in buying this currency and using the money to procure commodities from that country. The stimulus thus given to the demand must very soon bring the price of the currency up to the purchasing power parity. Therefore, where no extra restrictions on the export of a country are imposed, other causes depressing the exchange beneath the purchasing power parity can have only a temporary effect. As instances of such depressing tendencies we can quote: A distrust in the future of a monetary standard, leading to a discounting of an anticipated fall of the internal value of the money; operations of speculators, etc. By far the most important of these depressing factors is, however, the practice of selling out the currency of a country abroad. This practice has, during the last year, reached such proportions and become such a prominent factor in the international monetary situation that it is necessary to devote special attention to it. The whole operation can best be studied in the case of Germany. German marks have been sold out abroad on an enormous scale, and at almost any price they would fetch. As the central government, local bodies, banks, and business enterprises were in absolute need of foreign means of payment, and these did not seem to be procurable in any other way, the country was driven to this selling out of its currency. The process must be looked upon as a substitute—a bad substitute, indeed—for the more regular device of securing foreign loans. As lenders could not be found, Germany turned to a new class of investors, the speculators in currency, and offered them, instead of a high rate of interest, the inducement of an extraordinary low rate of exchange. Of course, the speculators suffered heavy losses as the exchange went down step by step. But new ranks of speculators were always ready to believe that "the bottom has been reached"; asa matter of fact, the last of them have made enormous profits. The selling out of marks is said to have been considerably increased by the endeavors to evade in this way an exorbitant taxation. Now, this process, carried on on such a scale, inevitably must have a tendency to depress the German mark beneath its purchasing power parity. Such a depression has also taken place, at certain periods, to a most alarming degree. When the mark was at its lowest international value it had certainly not more than a third or a fourth part of the value which would have corresponded to its internal purchasing power. It would, under such circumstances, have been extraordinarily profitable to use German marks for buying in the cheap German markets. In fact, almost everything could then have been exported from Germany with great advantage. This was, of course, an impossible situation for Germany. She was simply compelled to protect her scanty supplies of food and raw materials, and thus to prohibit exports of them. In regard to other commodities she tried to defend herself against buyers, seeking to take advantage of the low exchanges, by raising prices for foreigners to some multiple of the inland price. These measures, however, must, according to what has been stated above, have the effect of pressing down, permanently, the exchange value of the mark beneath its purchasing power parity. On the other side, the measures have not been quite effective. It has not been possible to prevent the enormous buying capacity put into the hands of foreigners from reverting, to a certain extent, to Germany and making itself fell Dn its internal market, by forcing up prices even for inland buyers. This means, however, that the internal purchasing power of the German mark has been reduced. In fact, the general rise of prices in Germany during the last 12 months has been enormous. But then, of course, the purchasing power parities of the mark have been proportionally cut down. From these experiences it seems clear enough what disastrous effects are connected with an endeavor to sell out a 1279 currency of a country to foreign speculators. Although the case of Germany is the most conspicuous, the practice has by no means been restricted to that country. Other countries which have been tempted on the same downward road should now see the necessity of stopping the process. EFFECTS ON INTERNATIONAL TRADE. Every alteration in the purchasing power parity of the exchange between two countries naturally must have a disturbing influence on their mutual trade. But as soon as this parity has been stabilized at a certain level it is of no importance whether this level is high or low. Thus, the export trade of a country is not hampered by low quotations of the foreign exchanges as long as these quotations only correspond to a high level of prices in foreign countries or a low level at home; nor is it specially stimulated by high quotations of the foreign exchanges as long as these only correspond to the relative purchasing power of the monetary standards quoted. Likewise, low prices on foreign currencies do not mean an encouragement of imports from them or a handicap for the home producer, provided these exchanges are a true expression for the purchasing power of the foreign money; on the same condition, high prices of foreign currencies do not in any way hamper the import from them. In fact, the terms "high" or "low" exchanges have no sense in themselves; if they are to be used they must obviously refer to the normal rates of exchange, i. e., to the purchasing power parities. But when used, as is generally the case, in reference to old parities which have lost all real significance they are in the highest degree misleading. Equally clear it is that every deviation of the actual rates of exchange from the purchasing power parities must cause considerable disturbances in international trade. The export from A to B must be very much hampered if the money of B is quoted in A lower than would correspond to the general level of prices in B as compared with that in A. At the same time, the import to A from B would get an artificial stimulus from such a quotation. True, both these effects would tend to enhance the value of the B money in A and to bring it up again to its purchasing power parity, which shows that this parity is the true point of equilibrium for the exchanges. But in reality this restoration to equilibrium may take a long time, expecially if the forces depressing the exchange are strong and work continually. And this period may prove very disturbing for trade and industry in both countries. Generally the country which has got its money undervalued is regarded as the sufferer, and the difficulties of its position are clear to everybody. In fact, however, it is not much better for the country whose currency is overvalued, such a country being exposed to quite a new sort of dumping of the most reckless and incalculable kind, and at the same time very much hampered in its export trade. Most European countries have had such disagreeable experiences of the extraordinary depression of the German mark during the winter 1919-20, while Germany herself has had to go through all the sufferings and curious disturbances of a country exposed to an abnormal undervaluation of its currency. But this is by no means the only case. There has been, in the first months of 1920, a very substantial undervaluation of the French franc and the Italian "lira in relation to British, American, and neutral currencies. It is obviously of great importance that the fullest light should be thrown upon the causes of these abnormal movements of the exchanges and on their effects on trade. Here we have, however, first of all, to emphasize the general truth that exchanges are disturbing to international trade only in so far as they deviate from their purchasing power parities. To judge the present exchanges from the point of view of the prewar parities is a grave mistake, which is, however, incessantly repeated, even in otherwise sound expositions of the monetary situation. The result is that people often represent an exchange as 1280 FEDEKAL RESERVE BULLETIK. being against a country when the opposite is the case, and vice versa. In questions of such vital practical bearing no obscurity in regard to first principles can be allowed without serious risk, and it seems, therefore, highly desirable that a full understanding on this point should be arrived at. The world will never come back to the prewar parities, and we shall therefore, in any case, sooner or later have to accustom ourselves to look upon the new purchasing power parities which, we may hope, will gradually crystallize themselves out of the present muddle as the true parities. The months of May and June of 1920 have witnessed a very sharp rise of the German mark. One could have imagined that this recovery should have been a great advantage for Germany, as well as for the countries trading • with Germany, and, to a certain extent, this has undoubtedly been the case. But the very alteration and its suddenness have in reality proved almost fatal not only to the international trade of Germany, but also to her production and her whole internal economic life. These consequences have naturally been aggravated by the violent daily fluctuations of the exchanges which have taken place and which seem to have become worse and more incalculable than ever. These experiences and similar experiences in regard to other currencies seem to show that exchanges which are very much depressed beneath their purchasing power parities are liable to more violent and arbitrary fluctuations than exchanges which move in the vicinity of their purchasing power parity. Certainly a situation which allows such fluctuations of the exchanges is quite intolerable; the complete impossibility of making an ordinary business calculation or an economic forecast of any kind threatens not only international trade, but the whole economic life of a continually growing part of the world with a complete breakdown. When the exchanges move against a country—i. e., when the currency of the country sinks in international value—people generally explain it as a result of an adverse balance of trade. But this explanation is obviously inadequate if the deviation of the exchanges is considerable and has more than a quite temporary character. For if a country buys more from another than it sells to it, the balance must be paid in some way; say, by export of securities or by loans in the other country. Thus the balance of payments must on the whole equalize itself, and there is no reason for a definite alteration in the rates of exchange. Should such an alteration occur, it must generally be taken as a proof of an inflation which has brought down the internal value of the monetary unit of the country and raised its general level of prices. With an unaltered price level and an adverse rate of exchange the country's export trade should get a strong stimulus, which would tend to bring the exchange back soon enough to its normal rate. On the other hand, if an inflation has taken place a new normal equilibrium of the exchanges must establish itself, quite irrespective of any balance of trade. If, e.g., the French inflation is 600 (in comparison with 100 before the war) and the English inflation is 300, it is altogether superfluous to look for another cause to explain the normal rate having doubled from 25 francs for the pound to 50 francs. (These figures are, of course, somewhat simplified, but may be taken as representing the essential of what has really happened.) If then, in addition, France, suffers from an adverse balance of trade, this balance must be paid for by fresh credits or by export of securities, and no further depression of the franc will follow. Were the country really cut off from all normal ways of procuring means of payment, and were it for this reason turning to sell out its own currency abroad to speculators, that would without doubt be a factor tending to a further depression of the international value of the franc. But even then a definite depression beneath the purchasing power parity could only take place if the export of com- DECEMBER, 1920. modities from France were particularly restricted and the foreign holders of francs thereby cut off from a free use of their purchasing power on the French market. This ought to make it clear that an adverse balance of trade, or even, more generally, an adverse balance of daily obligations, is quite insufficient as an explanation of any lasting depression of the exchange value of the currency of the country. Now, if we are bound, on these grounds, to abandon altogether the popular theory of trade balances as an explanation of the movements of international exchanges since the beginning of the war, another very popular theory has to be buried, too, viz, the theory that depressed exchanges can be corrected by an adjustment of the trade balance. In fact, it is very generally believed that a country which has seen the price of its money abroad sink very much below its prewar parity will be able, after the war, to restore the old exchanges only by increasing its exports. This will certainly be possible if the low quotations of the money of the country have been caused exclusively by one-sided hindrances against its exports. But if they are signs of a deteriorated internal value of the money, no development of the export of the country can better the exchanges. These will in the future be governed exclusively by the purchasing power parities, and will therefore only be improved if the country succeeds in reducing its inflation, and thus in giving its monetary unit a higher internal value. But this is, as we shall see, a very complicated process, involving difficulties of another kind than that of increasing exports. STABILIZATION OF THE DIFFERENT MONETARY STANDARDS. The problem of stopping inflation is obviously, in the first instance, a problem for each country to decide for itself. By carrying through such a policy the country will be able to attain a stabilized standard of value; and whatever may be the further aims of the monetary policy of the country, this is undoubtedly the first thing to be done. The general means of keeping up a monetary standard is the sufficient limitation of the supply of means of payment in that standard. The principal regulator of this supply is the rate of discount. In the whole world the rates of discount have been too low during the war. The real scarcity of capital would have commanded a much higher interest than the 5 or 6 per cent which have generally prevailed but which have only been the results of a continual falsification of the money market. Even now, after the war, the world's need of capital is so great, in comparison with the scanty supply, that a real equilibrium can be attained only by the aid of higher rates of interest than those generally prevailing. This has begun to be more and more recognized, as is shown by the latest increases of the discount rates of some central banks up to 7 per cent. But still there are many countries lagging behind in this regard in the belief, as it seems, that they can really afford the convenience of a much lower rate, and curiously enough these countries are by no means always among the richest. * * * The first condition which must be fulfilled, if a stabilization of prices shall be attained, is, therefore, that the rate of interest at which the banks lend their money shall, broadly at least, correspond to the real scarcity of capital. Besides the rate of interest, there are other means for enforcing the necessary restriction on the demand for capital. The banks always discriminate between the proposals for which their accommodation is sought, and in periods of particular scarcity of capital it is only natural that this discrimination is made more severe than usual. It seems sound, under present circumstances to discriminate particularly against a use of capital which, though preferable enough, will require a long time to become remunerative; or which involves mainly the strength- DECEMBER, 1920. FEDERAL RESERVE BULLETIN. ening of a monopoly without adding materially to the productive capacity of the community; or which is calculated to serve a demand for luxuries which now ought to be excluded. But the proposition that is sometimes put forward that the banks should restrain their fresh advances to purposes of "public utility," refusing assistance even to the most profitable bargains or enterprises, seems thoroughly unsound, considering that it must be a rather important public interest—particularly in a poor country or in times of distress—that capital shall be used, generally, in the most profitable way. The device of using capital for "public utility" has, in reality, proved itself to lead to particularly wasteful dispositions of capital, without due regard to the actual limits of supply, and, therefore, to be one of the most prominent factors in the process of inflation. The bureaucratic control of the use of capital which has been introduced in some countries does not seem capable of doing much good. If the rate of interest is kept so high as to correspond to the real scarcity of capital, there will be no need for a further restriction of the demand on bureaucratic lines. And if bureaucratic regulation is to supply the additional restriction of the market which a too low bank rate makes necessary, it seems almost sure that the employment of the available capital in the-community will be rather uneconomical. Besides, the control itself must be a serious hindrance against trade and enterprise, and, therefore, must diminish the effectivity of the business life of the country. * * * M. Delacroix, former prime minister and minister of finance for Belgium, presented a memorandum to the conference, which has been widely discussed, on the subject of an international bank of issue. ESTABLISHMENT OF AN INTERNATIONAL BANK. (By M. Delacroix.) AN INTERNATIONAL BANK OF ISSUE. Such being the financial condition of Europe, it is urgent, indeed essential, to set up an international bank of issue, in which all States, without distinction, would be represented, and which would be managed by a committee consisting of a number of delegates. The objects of this bank would be to issue interest-bearing gold bonds in exchange for genuine securities. The committee of this bank would decide in each case whether the securities offered were satisfactory; only after thorough investigation of the proposed guarantees would it consent to issue to any State requesting a loan, bonds to the value of these securities. The guarantees would involve, in certain cases, a direct control over the yield obtained from the securities. f The situation is so critical in certain parts of Europe that common humanity calls for intervention, and for loans to prevent the populations dying of want. Yet these countries in nearly every case still possess resources which they can not immediately make use of. The bank of issue would give them the means of using these assets, during a period to be defined, and would permit them to obtain at once the funds necessary to buy essential supplies. There are some States, especially in Europe, whose financial resources are at an end, but who, nevertheless, possess considerable natural wealth. The international bank, by means of the financial control which it would introduce, would be the means of saving them from ruin. 1281 THE POSITION OF THE CENTRAL POWERS. Moreover, the Central Powers, who are under the jurisdiction of the reparations commission, must nevertheless be allowed a certain amount of free export. Germans must be allowed to deal with their foreign agents in order to sell their produce and obtain a supply of essential raw material. The powers of the reparations commission can not be widened to that extent. Therefore, another organization is necessary, independent of the reparations commission, which can control this free commerce from a purely financial point of view. THE EFFECTS OF THE BOND ISSUE. Doubtless the exchange market as it now exists will remain independent of the international bank of issue, but as a large number of international transactions will be carried out in the way described above, rises in the exchange will be retarded, and the exchange market will no longer have a continual tendency to rise. Further, States will gradually come to understand how vital it is to them to equalize their balance of trade and, consequently, to limit imports to strictly necessary goods. States with a depreciated exchange having thus obtained bonds from the bank of issue will be able to obtain abroad, by this means, goods essential for their food supply and the raw material for their industries and for transport services, etc. It will be clearly understood that these bonds can only be issued for the purchase of produce or goods, and not for purchase of gold. Foreign traders to whom these bonds are oltered in payment will endeavor to discount them through private banks. They will have no difficulty in doing so as the security will be first class, equal in value to gold, and secured by guarantees under international control. The system, therefore, does not entail the undesirable necessity of fresh inflations of currency. Securities will consist either of rights over customs duties, harvests, mineral products, or any produce from which a return can be foreseen in a relatively short time, and which will allow the bonds to be redeemed at a not too distant date. THE INTERNATIONAL BANK WILL ACT AS A CLEARING HOUSE. The working of the bank will, moreover, allow rapid circulation of these bonds. The resumption of work ought to result in the reestablishment of the financial balance of each of the States affected by the crisis. The international bank will thus be a huge clearing house, with branches in each country which belongs to it. The number of bonds given to each country will be determined by general agreement, and the clearing house will keep them at the disposal of the different countries who call for them as and when they need them. The bonds assigned will be handed over by the Government to the branch of the clearing house with instructions not to allow them to be used except for essential needs. At the same time steps could be taken to insure that the payments received for foreign sales of manufactured goods by those who import raw material should be put at the disposal of the branch of the clearing house and dealt with at the same rate as that fixed for the bonds. THE IMPORTANCE OF COUNTRIES PROVIDING RAW MATERIALS. Without the assistance of the chief holders of raw materials and gold (American and neutral countries) it will be difficult to remedy the disease. But even without this assistance, an arrangement on a smaller scale between countries with depreciated exchanges would be most desirable and useful. 1282 FEDERAL, RESERVE BULLETIN". The difficult point will be the assessment of the number of bonds to be given to each country. We must, above all, take into account the possibility of repayment, by means of the produce of industry, of the sums lent to borrowing States. The "coefficient of productivity" must, therefore, be taken into account. In an additional memorandum Prof. Pigou, of Cambridge, has set forth the salient difficulties connected with the whole problem of international loans. MEMORANDUM ON CREDIT, CURRENCY, AND EXCHANGE FLUCTUATIONS. (By A. C. Pigou.) * * * There are three principal alternative methods under which a loan with international sanction might be raised: (1) It might be offered for subscription on the markets of the world under an international guaranty; (2) it might be subscribed directly by certain of the financially stronger governments; or (3) the administrative authority might issue guaranteed bonds to borrowing governments which these borrowers could then sell upon the market. These plans will now be considered in turn. * * * The third plan is in substance that submitted by M. Delacroix. Under this plan the guaranteeing authority would not raise subscriptions at all, but would emit interest-bearing bonds, secured in the first place on the pledge of repayment, accompanied perhaps .by collateral, of the borrowing governments, and in the second place by the guarantee of the international authority. These bonds would then be issued by the government to which a loan had been granted as means of payment for foreign purchases. This means, in effect, that they would be sold for cash either to members of the general public or to bankers in stronger countries. This plan has the advantage that it can not well end in a fiasco. Bonds of this kind are practically bound to be salable at a price. It is thus certain that funds really would be raised for the countries in need. If the League of Nations issued a 5 per cent loan for subscription, there might be hardly any response, but if it in effect issues.5 per cent bonds and offers them on the market, not at a fixed issue price but at whatever price the market decides to pay for the bonds, there is bound to be a response. If the tonds sold in the market at less than par, the borrowing government would, of course, have to pay for the accommodation thus obtained a net rate of interest correspondingly in excess oi the nominal rate borne by the bond. This, however, would merely register the fact that capital is very dear. Except by way of gift, which is not now in question, countries in difficulties can not reasonably look to obtain capital on terms better than these on which it will be subscribed under an international guaranty. If the conditions of loans operated under an international guaranty were made sufficiently stringent, the risk to the guarantors would not be very large. Nevertheless, it would, of course, be necessary to define strictly the terms of the guaranty and to determine the limit of liability of each guaranteeing government. The second problem * * * was that o^" determining the principles in accordance with which the internationally raised loan should be distributed. Plainly the leading criteria must be, for consumption loans, urgency of need, and for production loans, probable productivity in the near future. Account must be taken of the fact that certain countries are so short of materials that their labor and factory equipment can not be got to work and that therefore a large mass of productive power is involuntarily idle; that others, while perhaps possessing raw material, are short of machines, factory tools, agricultural implements, etc., so that their labor can not be applied to their DECEMBER, 1920. material and natural resources in a really effective manner; and that yet others are so short of the apparatus of transport, adequately repaired railway lines, wagons, engines, and the necessary spare parts that such resources in food, material (including coal), etc., as they have or receive can not be taken without prolonged delays to the places where it is most wanted. Thus there would be scheduled (1) food up to a minimum required to conserve working power; (2) agricultural implements to enable food to be produced at home up to a minimum; (3) material to enable factories to get to work up to a minimum; (4) machines for depleted factories. These things would take precedence of everything else as being the conditions precedent to productivity. Then might come long period work to restore regions so devastated that no effect can be produced for some years; to rebuild factories or build new ones, and so on. Statistical inquiry would have to be made to determine the amount of the needs of the several countries under the different categories. The distribution of available funds would have in the main to be based upon the result of this inquiry. Essential food needs and needs for capital required to set existing capital working should in the general interest be satisfied before the needs for restoration and rebuilding of devastated areas, the effective renewal of which would necessarily take a long time. There remains the problem of the conditions to be imposed in connection with the loans. It is evident that no grants should be made except for the purpose of purchasing essential articles, necessary food, raw material for industry, transport equipment, or the mechanical equipment of factories and farms. This condition would not, however, always be sufficient. A loan made for the purchase of these things might be so used as to enable the home resources of borrowing countries to be wasted in unessential purposes, which, but for the loan, would have had to be postponed in favor of efforts to meet essential needs. In this way, though in form the loan would be devoted to essential needs, in reality it would not be. Further conditions might therefore be found on occasions to be necessary. It goes without saying that some discretion on this matter would have to be left to the authority entrusted with the administration of the loan, and it is not, therefore, suggested that the same conditions should be imposed in connection with every grant. Nevertheless, it may be useful to pass in review certain conditions which naturally suggest themselves as appropriate. (a) First, as a condition of a grant from the international loan, the administering authority should require the borrowing country to take means to insure that its citizens are not at the same time themselves making loans or investments abroad. Investment of capital abroad may be stopped by direct prohibition against making loans to foreigners or taking up shares in foreign companies. It would be necessary also to forbid the purchase from foreigners of existing shares, whether in foreign or in domestic companies. The same result could be achieved otherwise by (1) prohibiting the export of any securities except against goods, and (2) prohibiting the export of goods except on condition that the proceeds shall be brought in either goods or in foreign exchange within some limited time (e. g., in Greece), the foreign exchange thereafter only being made available to importers of essential goods. (b) Secondly, it seems reasonable that loans should be conditional on the borrowing countries conserving such foreign exchange as they hold either in payment for exports of their goods or for the sale abroad of securities held by their citizens for essential purchases. This condition could be enforced by the prohibition of luxury imports and, ultimately, by compulsion upon all receivers of foreign exchange to sell it in a central institution which, in turn, would only resell to persons contracting to bring in imports scheduled as essential. It should be pointed out, however, that a policy of excluding luxury imports may DECEMBER, 1920. FEDERAL RESERVE BULLETIN. defeat its own purpose unless it is accompanied by a similar prohibition against the home manufacture of luxury goods for home consumption. For, if nothing were done except to prohibit the import of luxuries, rich people desirous of these or similar things might offer high prices for home varieties of them. In certain circumstances this would mean that the real cost in capital and labor involved in getting them by direct manufacture would be bigger than the real cost of making the exports with which they used to be bought. It might happen, therefore, that a prohibition of luxury imports would cause exports to fall off by more than the amount formerly employed to buy the luxuries; so that, as a final result of the prohibition, the country would be less, and not better, able to buy necessaries for itself abroad. These considerations show that the case for making a prohibition of luxury imports unaccompanied by general sumptuary legislation, a condition of international assistance, is less strong than it appears to be at first sight. (c) Thirdly, in the particular conditions of the present time there is a third form of waste of resources which it may be well to preclude in the conditions of a loan. In Germany and Austria, owing to an exchange collapse out of proportion to the rise of domestic prices, it pays individuals to sell goods to foreigners for export at very much less than their foreign value. Clearly, here what is required is not, indeed, to prohibit exports, but to insure that export sales are made at prices roughly corresponding with the world market, the special profit in domestic currency being taken in an export tax or otherwise by the government. (d) Fourthly, it can be no part of the duty of a body set up by the League of Nations indirectly to finance war or the upbuilding of military establishments. It may well be held, therefore, that no loan should be made to a nation engaged in war or in "unreasonable military preparations." In practice, however, the task of deciding what preparations are in fact unreasonable would often present insuperable difficulties. The same sort of difficulty attaches to the imposition of such a condition as that a borrowing government must be taking reasonable means to balance its budget or to check the expansion of its currency. (e) Finally, the loans would have to be in terms of gold and not of the borrowing country's currency. The interest payable on them, as well as the principal, would have to be exempt from all taxation in that country so long as they were held by foreigners. They would have to take precedence over, or at least to rank with, other debts of the borrowing governments. In some circumstances a lien on customs or on industrial concerns might be required as security for the payment of the interest due on them. RESOLUTIONS OF COMMITTEES. The resolutions of the four committees appointed for the study of public finance, currency and exchange, international trade, and international credits are quoted in full below. The annex to the resolutions of the commission on international credits gives the suggestions of M. Ter Meulen which were accepted by that committee. RESOLUTIONS PROPOSED BY THE COMMISSION ON PUBLIC FINANCE. I. Thirty-nine nations have in turn placed before the international financial conference a statement of their financial position. The examination of these statements brings out the extreme gravity of the general situation of 1283 public finance throughout the world, and particularly in Europe. Their import may be summed up in the statement that 3 out of every 4 of the countries represented at this conference, and 11 out of 12 of the European countries, anticipate a budget deficit in the present year. Public opinion is largely responsible for this situation. The close connection between these budget deficits and the cost of living, which is causing such suffering and unrest throughout the world, is far from being grasped. Nearly every government is being pressed to incur fresh expenditure; largely on palliatives which aggravate the very evils against which they are directed. The first step is to bring public opinion in every country to realize the essential facts of the situation and particularly the need for reestablishing public finances on a sound basis as a preliminary to the execution of those social reforms which the world demands. II. Public attention should be especially drawn to the fact that the reduction of prices and the restoration of prosperity is dependent on the increase of production, and that the continual excess of government expenditure over revenue represented by budget deficits is one of the most serious obstacles to such increase of production, as it must sooner or later involve the following consequences: (a) Further inflation of credit and currency. (6) A further depreciation in the purchasing power of the domestic currency, and a still greater instability of the foreign exchanges. (c) A further rise in prices and in the cost of living. The country which accepts the policy of budget deficits is treading the slippery path which leads to general ruin; to escape from that path no sacrifice is too great. III. It is therefore imperative that every government should, as the first social and financial reform, on which all others depend— • (a) Restrict its ordinary recurrent expenditure, including the service of the debt to such an amount as can be covered by its ordinary revenue. (6) Rigidly reduce all expenditure on armaments in so far as such reduction is compatible with the preservation of national security. (c) Abandon all unproductive extraordinary expenditure. (d) Restrict even productive extraordinary expenditure to the lowest possible amount. IV. The Supreme Council of the Allied Powers in its pronouncement on the 8th March declared that "Armies should everywhere be reduced to a peace footing, that armaments should be limited to the lowest possible figure compatible with national security, and that the League of Nations should be invited to consider, as soon as possible, proposals to this end." The statements presented to the conference show that, on an average, some 20 per cent of the national expenditure is still being devoted to the maintenance of armaments and the preparations for war. The conference desires to affirm with the utmost emphasis that the world can not afford this expenditure. Only by a frank policy of mutual cooperation can the nations hope to regain their old prosperity; and in order to secure that result the whole resources of each country must be devoted to strictly productive purposes. The conference accordingly recommends most earnestly to the council of the League of Nations the desirability of conferring at once with the several governments concerned, with a view to securing a general and agreed reduction of the crushing burden which, on their existing scale, armaments still impose on the impoverished peoples of the world, sapping their resources and imperiling their recovery from the ravages of war. The conference hopes that the assembly of the League which is about to meet will take energetic action to this end. V. While recognizing the practical difficulties in the way of immediate action in all cases, the conference considers that every government should abandon at the earlies practicable date all uneconomical and artificial measure 1284 FEDERAL RESERVE BULLETIN. which conceal from the people]the true economic situation; such measures include— (a) The artificial cheapening of bread and other foodstuffs, and of coal^and other materials by selling them below cost price to the'public, and the provision of unemployment subsidies of such a character as to demoralize rather than encourage industry. ^ (6) The maintenance of railway^fares, postal rates, and cliarges for other government services on a basis which is insufficient to cover the cost of the services given, including annual charges on capital account. I VI. In so far as, after every effortJias been made, it is impossible to cut down expenditure" within the limits of existing revenues, fresh taxationjnust be imposed to meet the deficit, and this process must be ruthlessly continued until the revenue is at least sufficient to meet the full amount of the ordinary scurrent expenditure. The conference considers that the relative advantages of the various possible means of increasing" the national revenue, whether by direct or indirect taxation or by a capital levy (to be devoted to the repayment of debt), depend upon the special economic conditions obtaining in each country, and that in consequence each country must decide for itself on the methods which are best suited to its own internal economy. VII. If the above principles are accepted and applied loans will not be required for recurrent ordinary expenditure; borrowing for that purpose must cease. In a number of countries, however, although the ordinary charges can be met from revenue, heavy extraordinary expenditure must at the present time be undertaken on capital account. This applies more especially in the case of those countries devastated during the war, whose reconstruction charges can not possibly be met from ordinary receipts. The restoration of the devastated areas is of capital importance for the reestablishment of normal economic conditions; and loans for thip purpose are not only unavoidable but justifiable. But in view of the shortage of capital it will be difficult to secure the sums required even for this purpose, and only the most urgent schemes should be pressed forward immediately. VIII. The mean3 by which loans are raised are no less important than the purposes for which they are destined. In future the loans which are required for urgent capital purposes must be met out of the real savings of the people. But those savings have, as it were, been pledged for many years ahead by the credits created during the war, and the first step to raising fresh money must be to fund the undigested floating obligations with which the markets are burdened. These principles apply both to internal and to external borrowing, and in regard to the latter we suggest that it would be in the general interest for the creditor countries to give such facilities as may be possible to the debtor countries to fund their floating obligations at the earliest possible date. IX. In order to enlist public interest it is essential to give the greatest publicity possible to the situation of the public finances of each State. The conference is, therefore, of the opinion that the work already accomplished by the secretariat in its comparative study of public finances should be continued, and it suggests that the Council of the League of Nations should request all its members and all the nations represented at this conference to furnish it regularly not only with budget estimates and final budget figures, but also with a halfyearly account of actual receipts and expenditure. At the same time, countries should be urged to supply as complete information as is possible on the existing system of taxation, and any suggestions which may appear to each State to be useful for the financial education of the public opinion of the world. With the aid of the information thus obtained the League of Nations would be enabled to prepare pamphlets for periodical publication, setting out the comparative financial position of the countries of the world, and explaining the various systems of taxation in force. DECEMBER,, 1920. X. The conference is of opinion that the strict application of the principles outlined above is the necessary condition for the reestablishment of public finances on a sound basis. A country which does not contrive as soon as possible to attain the execution of these principles is doomed beyond hope of recovery. To enable Governments, however, to give effect to these principles, all classes of the community must contribute their share. Industry must be so organized as to encourage the maximum production on the part of capital and labor, as by such production alone will labor be able to obtain those improved conditions of life which it is the aim of every country to secure for its people. All classes of the population, and particularly the wealthy, must be prepared willingly to accept the changes necessary to remedy the present situation. Above all, to fill up the gap between the supply of and the demand for commodities, it is the duty of every patriotic citizen to practice the strictest possible economy and so to contribute his maximum effort to the common weal. Such private action is the indispensable basis for the fiscal measures required to restore public finances. RESOLUTIONS PROPOSED BY THE COMMISSION ON CURRENCY AND EXCHANGE. The currency of a country, in the sense of the imme diate purchasing power of the community, includes (a) the actual legal tender money in existence, and (6) any promises to pay legal tender, such as bank balances— which are available for ordinary daily transactions. The currencies of all belligerent, and of many other countries, though in greatly varying degrees, have since the beginning of the war been expended artificially, regardless of the usual restraints upon such expansion (to which we refer later) and without any corresponding increase in the real wealth upon which their purchasing power was based; indeed, in most cases, in spite of a serious reduction in such wealth. It should be clearly understood that this artificial and unrestrained expansion, or uinflation " as it is called, of the currency or of the titles to immediate purchasing power, does not and can not add to the total real purchasing power in existence, so that its effect must be to reduce the purchasing power of each unit of the currency. It is, in fact, a form of debasing the currency. The effect of it has been to intensify, in terms of the inflated currencies, the general rise in prices, so that a greater amount of such currency is needed to procure the accustomed supply of goods and services. Where this additional currency was procured by further "inflation" (i. e.y by printing more paper money or creating fresh credit) there arose what has been called a "vicious spiral" of constantly rising prices and wages and constantly increasing inflation, with the resulting disorganization of all business, dislocation of the exchanges, a progressive increase in the cost of living, and consequent labor unrest. I. Therefore: It is of the utmost importance that the growth of inflation should be stopped, and this, although no doubt very difficult to do immediately in some countries, could quickly be accomplished by (1) abstaining from increasing the currency (in its broadest sense as denned above), and (2) by increasing the real wealth upon which such currency is based. The cessation of increase in the currency should not be achieved merely by restricting the issue of legal tender. Such a step, if unaccompanied by other measures, would be apt to aggravate the situation by causing a monetary crisis. It is necessary to address ourselves to the causes underlying the necessity for the additional currency. The chief cause in most countries is that the Governments, finding themselves unable to meet their expenditures out of revenue, have been tempted to resort to the artificial creation of fresh purchasing power, either by the direct issue of additional legal tender money or more frequently by obtaining—especially from the banks of issue, which in some cases are unable and in others unwilling to DECEMBER, 1920. FEDERAL RESERVE BULLETIN. 1285 refuse them—credits which must themselves be satisfied Another urgent need is the freest possible international in legal tender money. We say, therefore, that— exchange of commodities. With this another commission II. Governments must limit their expenditure to their revenue. will deal, but we feel that our recommendations here on (We are not considering here the financial operations carried out inflation would not be complete without adding that— VI. Commerce should as soon as possible be freed from in conjunction with the reconstruction of the devastated areas.) I I I . Banks, and especially banks of issue, should be freed control, and impediments to international trade removed. Equally urgent is the necessity for decreased consumpfrom political pressure and should be conducted solely on the tion in an impoverished world" where so much has been lines of prudent finance. But the Governments are not the only offenders in this destroyed and where productive power has been impaired. respect; other parties, and especially in pome countries It is therefore specially important at present that, both on the municipalities and other local authorities, have raised public and private account, and not only in-impoverished excessive credits which in the same way multiply the countries, but in every part of the world— VII. All superfluous expenditure should be avoided. titles to purchasing power. To attain this end the enlightenment of public opinion Nor will it be sufficient for the purpose of checking further inflation that additional issues of legal tender currency is the most powerful lever. If the wise control of credit or the granting of additional credits should cease, since the brings dear money, this result will in itself help to promote floating debts of Government and other authorities con- economy. We pass now from inflation and its remedies to the stitute in themselves a form of potential currency in that, * except in so far as they are constantly renewed, their other points submitted to us. Without entering into the question whether gold is or amount will come to swell the total currency in existence; is not the ideal common standard of value, we consider it consequently— IV. The creation of additional credit should cease and Gov- most important that the world should have some common ernments and municipalities should not only not increase standard, and that, as gold is to-day the nominal standard their floating debts, but should begin to repay or fund them of the civilized world— VIII. It is highly desirable that the countries which have by degrees. In normal times the natural and most effective regulator lapsed from an effective gold standard should return thereto. It is impossible to say how or when all the older countries of the volume and distribution of credit is the rate of interest which the central banks of issue are compelled, for the would be able to return to their former measure of effective sake of self-preservation and in duty to the community, gold standard, or how long it would take the newly formed to raise when credit is unduly expanding. It is true that countries to establish such a standard. But, in our opinion— IX. It is useless to attempt to fix the ratio of existing high money rates would be expensive to Governments which have large floating debts, but we see no reason why fiduciary currencies to their nominal gold value; as, unless the community in its collective capacity (i. e., the Gov- the condition of the country concerned were sufficiently ernment) should be less subject to the normal measure for favorable to make the fixing of such ratio unnecessary, it restricting credit than the individual members of the com- could not be maintained. The reversion to, or establishment of, an effective gold munity. In some countries, however, the financial machinery has become so abnormal that it may be difficult standard would in many cases demand enormous deflation for such corrective measure to be immediately applied. and it is certain that such— X. Deflation, if and when undertaken, must be carried out We recommend, therefore, that— V. Until credit can be controlled merely by the normal gradually and with qreat caution; otherwise the disturbance influence of the rate of interest it should only be granted for to trade'and credit might prove disastrous. XI. We can not recommend any attempt to stabilize the real economic needs. It is impossible to lay down any rule as to the " proper value of gold and we seriously doubt whether such attempt rates" of discount or interest for different countries. could succeed; but this question might well be submitted These rates will depend not only on the supply and demand to the committee to which we refer later, if it should be at different times, but also on other factors often of a appointed. XII. We believe that neither an international currency nor psychological nature. It may, indeed, confidently be said that when once the arbitrary increase of inflation an international unit of account would serve any useful purceases and when the banks of issue are able successfully pose or remove any of the difficulties from which interto perform their normal functions, rates will find their own national exchange suffers to-day. XIII. We can find no justification for supporting the idea proper level. The complementary steps for arresting the increase of that foreign holders of bank notes or bank balances should be inflation by increasing the wealth on which the currency treated differently from national holders. XIV. In countries where there is no central bank of issue, is based may be summed up in the words: Increased proone should be established, and if the assistance of foreign duction and decreased consumption. The most intensive production possible is required in capital were required l o r the promotion of such a bank, order to make good the waste of war and arrest inflation, some form of international control might be required. XV. Attempts to limit fluctuations in exchange by impos^ and thus to reduce the cost of living; yet we are witnessing 1 in many countries production below the normal, together ing artificial control on exchange operations are futile and with those frequent strikes which aggravate instead of mischievous. In so far as they are effective they do not achelp to cure the present shortage and dearness of com- curately reflect the real conditions of the market, tend to modities. When diminution in the Government's de- remove natural correctives to such fluctuations, and intermands frees more credits for trade and for the recuperation fere with free dealings in forward exchange which are so of the world, when inflation has ceased and prices cease necessary to enable traders to eliminate from their calculato rise, and when the general unsettlement caused by the tions a margin to cover risk of exchange, which would othwar subsides, it is probable that great improvement will erwise contribute to the rise in prices. Moreover, all Govbe seen in productive activity. Yet, in our opinion, the ernment interference with trade, including exchange, tends production of wealth is in many countries suffering from to impede that improvement of the economic conditions a cause which it is more directly in the power of Govern- of a country, by which alone a healthy and stable exments to remove, such as various forms of control often change can be secured. We support the suggestion that— imposed by them as a war measure and which has not XVI. A committee should be set up both for continuing yet been completely relaxed. In some cases business has even been taken by Governments out of the hands of the the collection of the valuable financial statistics that have private trader, whose enterprise and experience are a far been furnished for this conference and also the further more potent instrument for the recuperation of the country. investigation of currency policy. 1286 FEDERAL RESERVE BULLETIN. RESOLUTIONS PROPOSED BY THE COMMISSION ON INTERNATIONAL TRADE. I. The international financial conference affirms that the first condition for the resumption of international trade is the restoration of real peace, the conclusion of the wars which are still being waged, and the assured maintenance of peace for the future. The continuance of the atmosphere of war and of preparations for war is fatal to the development of that mutual trust which is essential to the resumption of normal trading relations. The security of internal conditions is scarcely less important, as foreign trade can not prosper in a country whose internal conditions do not inspire confidence. The conference trusts that the League of Nations will lose no opportunity to secure the full restoration and continued maintenance of peace. II. The international financial conference affirms that the improvement of the financial position largely depends on the general restoration as soon as possible of good will between the various nations; and in particular it indorses the declaration of the Supreme Council of the 8th March last "that the States which have been created or enlarged as a result of the war should at once reestablish full and friendly cooperation, and arrange for the unrestricted interchange of commodities in order that the essential unity of European economic life may not be impaired by the erection of artificial economic barriers." III. The conference recommends that, within such limits and at such time as may appear possible, each country should aim at the progressive restoration of that freedom of commerce which prevailed before the war, including the withdrawal of artificial restrictions on, and discriminations of price against, external trade. IV. The international financial conference expresses its conviction that the instability of the exchanges constitutes a great hindrance to the resumption of normal international trade. V. The international financial conference would welcome any action which can be taken by the League of Nations to enable the countries, which under present conditions can not purchase the necessary supplies for their reconstruction, temporarily to obtain commercial credits on an approved basis for this purpose. VI. The international financial conference expresses the conviction that the repair, improvement, and economical use of the transport systems of the world, and particularly of countries affected by the war, are of vital importance to the restoration of international trade. RESOLUTIONS PROPOSED BY THE COMMISSION ON INTERNATIONAL CREDITS. I. The conference recognizes in the first place that the difficulties which at present lie in the way of international credit operations arise almost exclusively out of the disturbance caused by the war, and that the normal working of financial markets can not be completely reestablished unless peaceful relations are restored between all nations, unless the outstanding financial questions resulting from the war are made the subject of a definite settlement, and unless this settlement is put into execution. II. The conference is, moreover, of opinion that the revival of credit requires as primary conditions the restoration of order in public finance, the cessation of inflation, the purging of currencies, and the freedom of commercial transactions. The resolutions of the Commission on International Credits are therefore based on the resolutions of the other commissions. III. The conference recognizes, however, that this general improvement in the situation requires a considerable period of time, and that in present circumstances it is not possible for certain countries to restore their economic activity without assistance from abroad. This assistance is required for periods which exceed the normal term of commercial operations. DECEMBER, 1920. IV. The conference is of opinion that in principle the resources out of which this assistance is to be provided should be found from the savings of the lending countries and must not result in undue increase of the fiduciary circulation—that is to say, in the creation or extension of a disproportion between means of payment and the genuine requirements of business. V. The conference believes, on the other hand, that this assistance can only be effectively accorded to countries which are prepared to assist one another in the restoration of economic life, and to make every effort to bring about within their own frontiers the sincere collaboration of all groups of citizens and to secure conditions which give to work and thrift liberty to produce their full results. VI. The conference does not believe that, apart from particular decisions dictated by national interests or by considerations of humanity, credits should be accorded directly by Governments. VII. It appears to the conference that one of the chief obstacles to the granting of credits is the absence in borrowing countries of sufficient security for ultimate repayment. The conference therefore studied with attention in the light of the general considerations enumerated above, all the proposals presented with a view to creating guarantees which would provide satisfactory security for exporters. The conference has been forced to recognize that no single system could by itself suffice to provide for the many different needs of the various countries, and that it is necessary to indicate a series of measures sufficiently elastic to be adapted afterwards to every variety of circumstances. For these reasons the conference decided to make the following recommendations: VIII. An international organization should be formed and placed at the disposal of States desiring to have resort to credit for the purpose of paying for their essential imports. These States Would then notify the assets which they are prepared to pledge as security for the sake of obtaining credit, and would come to an understanding with the international organization as to the conditions under which these assets would be administered. The bonds issued against this guarantee would be used as collateral for credits intended to cover the cost of commodities. A plan based upon these principles is developed in the annex. It has been devised to enable States to facilitate the obtaining of commercial credits by their nationals. It is easy to see that the scheme is susceptible of development in various directions, and that some of its provisions might be adapted so as to facilitate the extension of credit direct to public corporations. A committee of financiers and business men should be nominated forthwith by the Council of the League of Nations for the purpose of defining the measures necessary to give practical effect to this proposal. IX. It has been represented to the conference that more complete results might be achieved if the bonds used as collateral were to carry some international guarantee. The conference sees no objection to the further consideration of this proposal. The committee referred to in Paragraph VIII above might usefully consider the conditions under which it could be applied. X. It has also been represented to the conference that an extension on international lines of the existing system of export credit insurance would in many instances be of great value in developing trade with countries where political and social conditions give rise to an anxiety which is often exaggerated by exporters. The conference believes that an extension of this kind is worthy of consideration, and that it should be examined in detail by experts. XL The attention of the conference has been called to the present svstem of "finishing credits (Veredlungskredit)"; that is to say, of credits under which a lien in favor of the exporter or a banker is maintained on the raw DECEMBER, FEDERAL RESERVE BULLETIN. 1920. material in all its different stages and upon the proceeds of the manufactured article. This system has suffered greatly owing to the lack in many countries of sufficient legal protection for the exporter throughout the various stages of importation, manufacture, reexportation, and sale. The conference would suggest that the council draw the attention of the different Governments to this question, and summon an advisory body of legal experts and business men to specify the legislative action which it would be desirable to take in order to attain the desired object in each of the countries concerned. XII. Apart from the above-mentioned proposals which the conference recommends the League of Nations to adopt, and if possible to apply in practice, the conference believes that the activities of the league might usefully be directed toward promoting certain reforms, and collect ing the relevant information required to facilitate credit operations. In this connection the conference considers it well to draw attention to the advantages of making progress under each of the following heads: (1) Unification of the laws relating to bills of exchange and bills of lading; (2) The reciprocal treatment of the branches of foreign banks in different countries; (3) The publication of financial information in a clear, comparative form; (4) The examination of claims by the holders of bonds the interest on which is in arrears; (5) An international understanding on the subject of lost, stolen, or destroyed securities; (6) The establishment of an international clearing house; (7) An international understanding which would insure the due payment by everyone of his full share of taxation and would avoid the imposition of double taxation, at present an obstacle to the placing of investments abroad. XIII. During the course of its deliberations the conference could not fail to be impressed by the fact that all, or almost all, of the many proposals submitted for its consideration require at some stage the active intervention of the League of Nations. The conference is unanimously in sympathy with this tendency, and believes that it is desirable to extend to the problems of finance that international cooperation which the League of Nations has inaugurated, and which it is attempting to promote in order to improve the general situation and maintain the peace of the world. ANNEX. 1. In order that impoverished nations, which under present circumstances are unable to obtain accommodation on reasonable terms in the open market, may be able to command the confidence necessary to attract funds for the financing of their essential imports, an international commission shall be constituted under the auspice: of the League of Nations. 2. The commission shall consist of bankers and business men of international repute, appointed by the council of the League of Nations. 3. The commission shall have the power to appoint sub commissions and to charge them with the exercise of its authority in participating (interesses) countries or groups of countries. 4. The Governments of countries desiring to participate shall notify to the commission what specific assets they are prepared to assign as security for commercial credits to be granted by the nationals of exporting countries. 5. The commission, after examination of these assets, shall of its own authority determine the'gold value of the credits which it would approve against the security of these 6. The participating Government shall then be authorized to prepare bonds to the gold value approved by the commission, each in one specific currency to be determined on the issue of the bond. 1287 7. The date of maturitv and the rate of interest to be borne by these bonds shall be determined by the participating Government in agreement with the commission. 8. The service of these bonds shall be secured out of the revenue of the assigned assets. 9. The assigned assets shall in the first instance be administered by the participating Government or by the international commission, as that commission may in each case determine. 10. The commission shall at any time have the right of making direct representations to the Council of the League of Nations as to the desirability of transferring the administration of the assigned assets either from the commission to the participating Government or from the participating Government to the commission. 11. The decision of the Council of the League of Nations on this question shall be binding. 12. After the preparation of these bonds the participating Government shall have the right to loan the bonds to its own nationals, for use by them as collateral security for importations. 13. The bonds shall be made out in such currencies and in such denominations as are applicable to the particular transaction in respect of which they are issued. 14. The participating Government shall be free to take or not to take security for the loan of these bonds from the nationals to whom they are lent. 15. The maturity and the rate of interest of the loan of the bonds shall be fixed by agreement between the participating Government and the borrower of the bonds; they need not be the same as the maturity and the rate of interest of the bonds themselves. 16. When making application to his Government for a loan of these bonds, the importer must furnish proof that he has previously obtained from the international commission express permission to enter into the transaction for which the bonds are to be given as collateral. 17. Each bond, before it is handed over by the participating Government to the importer, shall be countersigned by the commission in proof of registration. 18. Having obtained the consent of the commission and received from them the countersigned bonds, the importer will pledge these bonds to the exporter in a foreign country for the period of the transaction. 19. The exporter will return to him on their due dates the coupons of the pledged bonds, and the bonds themselves on the completion of the transaction. 20. On receipt of the coupons and the bonds respectively,the importer will return them to his Government. 21. Bonds returned to the participating Government shall be canceled and may subsecfuently be replaced by other bonds, either in the same or in a different currency, up to an equivalent amount. 22. The exporter, or if he has pledged the bonds the institution with which he has repledged them acting on his behalf, would be free, in the event of the importer not fulfilling the terms of his contract, to hold until maturity the bonds given as collateral by the importer, or to sell them in accordance with the custom in his country in case of default. 23. In the second alternative an option of repurchasing the bonds direct must first be given for a short period to the Government which issued them. 24. If a sale is resorted to and results in a surplus beyond what is necessary to cover the claims of the exporter upon the importer, the exporter shall be held accountable for that surplus to the Government which issues the bonds. 25. The revenues from the assigned assets shall be applied as follows to the service of the bonds. 26. Out of these revenues, the commission or the participating Government, as the case may be5> shall purchase foreign currencies sufficient to meet at their due date the coupons on all bonds any time outstanding in the different foreign currencies. 1288 FEDERAL RESERVE BULLETIN". 27. In addition they shall establish abroad in the appropriate currencies a sinking fund calculated to redeem at maturity 10 per cent of the bonds outstanding in each of the different countries. 28. Further, in addition to the amounts provided for payment of coupons and for the endowment of the sinking fund, they shall establish out of the assigned revenues a special reserve in one or more foreign currencies for the redemption of bonds sold in accordance with paragraph 22. 29. The amount to be set aside for the special reserve shall in each case be determined by the commission. 30. Any surplus remaining at the end of each year after the provision of these services shall be at the free disposal of the participating Government. 31. A participating Government shall have the right to offer its own bonds as collateral for credits obtained for the purpose of importations on Government account. The previous assent of the commission will in these cases also be required for the particular importations desired by the participating Government. 32. If a participating Government which has been in control of its assigned revenues should fail to fulfill its obligations, the exporter concerned will notify the commission and the commission will apply to the Council of the League of Nations for the transfer of the management of the assigned revenues to the commission. 33. The consent of the commission is necessary whenever bonds secured on the assigned assets are given as collateral and shall as a rule be accorded only for the import of raw materials and primary necessities. 34. The commission may, however, at its discretion, sanction in advance the importation of specified quantities of such goods. 35. Even in the case of imports under such a general sanction a notification of the particular transaction must be registered with the commission. 36. The assent of the commission must also be obtained in every case to the term of the credit which it is proposed to open. REPORT OF THE INTERNATIONAL FINANCIAL CONFERENCE. The president of the conference on October 8 presented the following report: In accordance with arrangements made by the Council of the League of Nations the international financial conference met at Brussels on Friday, September 24, 1920, in the Chamber of Deputies, which was generously placed at its disposal by the Belgian Government and the president of the chamber. The discussions of the conference, which sat until October 8, have been governed by the resolution passed by the Council of the League in February, 1920: "The League of Nations shall convene an international conference with a view to studying the financial crisis and looking for the means of remedying and of mitigating the dangerous consequences arising from it,'' and by the further instruction approved by the council on August 5, 1920, to the effect that "none of the questions which are the subject of the present negotiations between the Allies and Germany should be discussed at the conference." The members of the conference, 86 in number, while appointed by their several Governments, attended as experts and not as spokesmen of official policy. They were drawn from those with both private and official experience and the conditions of their appointment permitted them to give the conference the full benefit of their knowledge and to express their personal opinions with freedom. The members so attending represented the following 39 countries: Argentina, Armenia, Australia, Austria, Belgium, Brazil, Bulgaria, Canada, China, Czecho-Slovakia, Denmark, Esthonia, Finland, France, Germany, Greece, DECEMBER, 1920. Guatemala, Holland, Hungary, India, Italy, Japan, Latvia, Lithuania, Luxemburg, New Zealand, Norway, Peru, Poland, Portugal, Roumania, Serb-Croat-Slovene State, South Africa, Spain, Sweden, Switzerland, United Kingdom, United States of America, Uruguay. I. REVIEW OF THE SITUATION. Some of the financial ills from which the world is suffering are common to all nations. But the severity of the malady and the effects which it has produced on the body politic have varied immensely in proportion to the degree in which each nation has been immersed in the maelstrom of the war. In order, therefore, to get a complete and balanced picture of the situation, the conference first devoted itself to hearing an exposition of the financial situation of each of the 39 countries represented. These statements constitute Volume III of this report. Certain of the belligerent countries of Europe (Belgium, Bulgaria, France, Germany, Great Britain, Greece, Italy, and Portugal) unable to cover the expenses of the war from their national current revenue, find their balance sheet burdened with an enormous volume of both internal and external debt, the amount of the latter being still undetermined in the case of Germany. The total external debt of the European belligerents converted into dollars at par amounts to about 155 milliard dollars compared with about 17 milliard dollars in 1913, which, even when full allowance is made for the depreciation of money, represents a tremendous burden in proportion to the total national income of the belligerent countries. The external debt, amounting to about 11 milliard dollars due to the United States, to If milliard pounds sterling due to Great Britain, presents an even more difficult financial problem because in nearly every case it is payable in a currency which is less depreciated than that of the country concerned. The Government expenditure of these belligerent countries has increased in proportions which vary between 500 and 1,500 per cent, the present figures amounting to between 20 and 40 per cent of the total national income. The higher of these percentages represents the expenditure of France, which includes in her budget a very large sum for the restoration of her devastated provinces. In all cases vigorous efforts have been made to introduce an ordely fiscal system into State finance by the imposition of fresh taxation—mostly in the form of direct taxes—and the ordinary revenues are in most cases now equal to or not far short of the ordinary expenditure. But except in the case of Great Britain there is still a very large gap between the total income and expenditure. All of these countries have lost a very large propor-. tion of their prewar holdings of gold and have enormously increased their paper currencies. This process of inflation, which has been reduced by Great Britain and checked by France, still continues in other countries. Except in the case of Germany and her allies, whose imports were prevented by the blockade, all these countries have during the war had an enormous excess of imports over exports. This excess increased in some cases after the armistice, but it is now diminishing. Indeed, in almost every case there is now a perceptible growth of exports. During the war the exchanges of these countries did not reflect their real economic position, as artificial measures were in most cases taken to stabilize them; but the exchanges rapidly deteriorated when these measures were given up in 1919. This depreciation continued for 12 months. Since the spring of this year there have been appreciable variations, but on the balance the net movement has been toward improvement. As a result of the war a number of new States have been created, while certain existing States, some of which were belligerents, have had their territories profoundly modified. Among these are Austria, Czecho-Slovakia, Esthonia, Finland, Hungary, Latvia, Lithuania, Poland, DECEMBER, 1920. FEDERAL RESERVE BULLETIN. Roumania, and Serbia. For none of these countries, except Finland, is there a definite basis of comparison. All of them have received as a legacy of the war extremely depreciated currencies. In most cases the machinery of an orderly State revenue system is not yet in operation, and with enormous expenditure upon food relief, armaments, and in some cases actual war, there is no sign yet of any possibility of a budget equilibrium. In many of these countries the printing press is still in operation. On the other hand several of them are predominantly agricultural. Their productive powers may recover rapidly, and a single good harvest, especially with the present high price of food, is likely to strengthen both their financial and their economic position. In the case of Austria, whose economic life has been more completely disintegrated than elsewhere, the situation is peculiarly difficult. In the countries of Europe which were neutral during the war, including Denmark, Sweden, Holland, Luxemburg, Norway, Spain, and Switzerland, the position is essentially different; but the financial difficulties are also serious. In some cases heavy expenditure was incurred by these countries directly in consequence of the war, and they have had largely to increase their internal debt. But in most cases the budget difficulties are due to the growth of Government expenditures caused by the rise of prices and the provision of subsidies to prevent this rise pressing too heavily on the general population. This expenditure has in some cases been met by increased taxation, but in the case of Holland, Switzerland, and Spain there are considerable deficits, and in the two latter cases no equilibrium is yet in sight. The trade position of these countries also presents peculiar difficulties. During the war their trade balances were very favorable, owing to the demand for their products from the belligerent nations and the stoppage of their imports. The result was an accumulation of gold, which led to an expansion of currency and a rise of prices almost as serious as that which for entirely different reasons took place in the belligerent countries. Since the war the trade situation has been reversed, as these countries have been importing the goods required to replenish stocks, and, owing in part to the premium to which their exchanges have risen as compared with the depreciated currencies of the belligerent nations, the maintenance of their exports has become difficult. To some extent, therefore, the favorable factors in the situation of these countries are actually an embarrassment. The countries outside Europe have on the whole the most favorable economic position. Though special conditions affect certain of them, especially China, in general it may be said that they have benefited by the ready disposal of their products to the nations of Europe. Their trade balances have been very favorable, and their exchanges have improved relatively to those of European countries. They have in many cases been able to pay off a large proportion of their external debts and, on the other hand, have made large loans to their former creditors. This is particularly the case with the United States, to whom most of the countries of Europe are now heavily indebted. But, as in the case of European neutrals, their accumulation of gold has led to a rise in prices and has rendered more difficult the maintenance of the volume of their exports. Their future economic position, therefore, is vitally dependent on the restoration of the purchasing power of their European customers. It must also be kept in view that many of these countries, especially in the new hemisphere, have immense unfulfilled demands for capital expenditure, and the world-wide shortage of capital at the present time constitutes a serious handicap to their development. It is noteworthy, however, that, different as are the conditions in these different groups of countries, certain features are common to practically every country of the world as a consequence of the destruction and dislocation of the war. In every country the purchasing power of the national currency has diminished and the cost of living 1289 in terms of that currency has increased. With few exceptions, neutral as well as belligerent countries suspended the gold basis of their currency. Even where the gold basis has been retained the purchasing value of the currency has declined, for the value of gold itself in terms of commodities has diminished to about one-half. In every country international trade has been impeded, dislocated, and diverted from its normal channels. The inability of Europe to export during the war forced the normal purchasers of her goods to look elsewhere for their requirements, to develop production in unaccustomed channels at home or in other countries overseas. Simultaneously Europe's need for imports compelled the sale of her capital holdings abroad, which are not, therefore, now available for her present needs. The instability and depreciation of exchanges resulting from these and other causes have impeded the trade of both seller and buyer. Countries with unfavorable exchanges have found it difficult to buy raw materials, and those with favorable exchanges have found in them an obstacle to the sale of their exports. With half the world producing less than it consumes and having insufficient exports to pay for its imports, credits alone can bridge the gulf between seller and buyer, and credits are rendered difficult by the very causes which make them necessary. Finally, every country finds impediments to its international trade in the new economic barriers which have been imposed during and since the war. II. THE LIMITS OF FINANCIAL REMEDIES. Such, in the briefest outline, is the economic and financial condition of the world which was presented to the conference in vivid detail by the reports from the 39 countries attending it. The members of the conference were conscious that, limited to the sphere of finance both by their terms of reference and their personal qualifications, they could only deal with a part of the problem which faced the Governments and peoples of the world. Finance is, after all, only a reflection of commercial and economic life—a part only, though an essential part, of its mechanism. The wealth of the world consists of the products of man's work, and the sum total of human prosperity can be increased only by an increase of production. All that any official or organized action can do is to create conditions which are favorable to production, and of those the most important fall outside the sphere of finance. First and foremost, the world needs peace. The conference affirms most emphatically that the first condition for the world's recovery is the restoration of real peace, the conclusion of the wars which are still being waged, and the assured maintenance of peace for the future. The continuance of the atmosphere of war and of preparations for war is fatal to the development of that mutual trust which is essential to the resumption of normal trading relations. The world must resolve the rivalries and animosities which have been the inevitable legacy of the struggle by which Europe has been torn. This the conference ventures to hope is no vain aspiration. The fact that for the first time since 1914 representatives of belligerents and neutrals alike have met in conference is a good omen for the future. The world needs the inauguration of a new era of cooperation and good will between nations if it is to repair the destruction of those years of struggle, if indeed it is ever to secure the survival of its civilization. If the first condition of recovery is peace between the countries of the world, the next is peace within each of them and the establishment of conditions which will allay the social unrest that is at present impeding and reducing production and which will restore social content and with it the will and the desire to work. Among the conditions, however, which are essential if a maximum production is to be attained is the existence 1290 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. The conference moreover strongly indorses the declaraof a system which facilitates the exchange of commodities and their equitable distribution, and within this third tion of the supreme council of the 8th of March last, "that sphere lies the task of finance and the especial problems the States which have been created or enlarged as the result of the war should at once reestablish full and friendly which the conference has had to consider. cooperation and arrange for the unrestricted interchange of commodities in order that the essential unity of EuroIII. RECOMMENDATIONS OF THE CONFERENCE. pean economic life may not be impaired by the erection The conference divided the work, involved in the ex- of artificial economic barriers." Each country should amination of these problems into four parts and intrusted aim at the progressive restoration of that freedom of comspecial commissions of its members with the task of making merce which prevailed before the war, including the a detailed study and preparing specific recommendations withdrawal of artificial restrictions on, and discriminations with regard to (a) public finance and (6) currency and of price against, external trade. exchange, (c) international trade and commerce, and (d) REVENUE AND EXPENDITURE. international action with special reference to credits. The recommendations of these committees which have Where it is impossible to keep expenditure within the been unanimously approved by the conference are given in full at the end of this report and they require to be limits of existing revenue fresh taxation must be imposed considered as a whole with the detailed arguments on to meet the deficit, and this process must be ruthlessly continued until the revenue is at least sufficient to meet which they are based. The substance of these recommendations may be sum- the full amount of the recurrent ordinary expenditure. The relative advantages of the various possible methods marized as follows: of taxation depend on the special economic conditions obtaining in each country, and each country must decide GENERAL FINANCIAL CONSIDERATIONS. for itself on the methods best suited to its own internal The first step is to bring public opinion in every country economy. In future the loans which are required for urgent capital to realize the essential facts of the situation and particularly the need of reestablishing public finances on a purposes must be met out of the real savings of the people. sound basis as a preliminary to the execution of those But these savings have, as it were, been pledged for many years ahead by the credits created during the war, and social reforms which the world demands. the first step to raising fresh money must be to fund the Nearly every Government is being pressed to incur undigested floating obligations with which the markets fresh expenditure, largely on palliatives which aggravate are burdened. the very evils against which they are directed. The country which accepts the policy of budget deficits is CESSATION OF INFLATION. treading the slippery path which leads to general ruin; to escape from that path no sacrifice is too great. It is of the utmost importance that the growth of " inflaThe statements presented to the conference show that tion" should be stopped. It should be clearly understood on an average some 20 per cent of the national expendi- that this artificial and unrestrained expansion of the curture is still being devoted to the maintenance of arma- rency does not and can not add to the total real purchasing ments and to preparations for war. The conference power in existence, so that its effect must be to reduce the desires to affirm with the utmost emphasis that the world purchasing power of each unit of the currency. Inflation can not afford this expenditure. Only by a frank policy is in fact an unscientific and ill-adjusted method of taxof mutual cooperation can the nations "hope to regain their ation. old prosperity, and to secure that result the whole resources The effect of it has been to intensify, in terms of the of each country must be devoted to strictly productive inflated currencies, the general rise in prices, so that a purposes. The conference accordingly recommends most greater amount of such currency is needed to procure the earnestly to the Council of the League of Nations the accustomed supplies of goods and services. Where this desirability of conferring at once with the several Gov- additional currency was procured by further "inflation"— ernments concerned, with a view to securing a general i. e., by printing more paper money or creating fresh and. agreed reduction of the crushing burden which, on credit—there arose what has been called a "vicious their existing scale, armaments still impose on the im- spiral" of constantly rising prices and wages, and conpoverished people of the world, sapping their resources stantly increasing inflation with the resulting disorganizaand imperiling their recovery from the ravages of war. tion of all business, dislocation of the exchange, a proThe conference hopes that the assembly of the league gressive increase in the cost of living and consequent which is about to meet will take energetic action to this labor unrest. end. It is highly desirable that the countries which have It is also of the greatest importance that every Govern- lapsed from an effective gold standard should return ment should abandon at the earliest practicable date all thereto. It is impossible to say how or when all the uneconomical and artifical measures which conceal from older countries would be able to return to their former the people the true economic situation. measure of effective gold standard or how long it would To enable Governments, however, to give effect to the take the newly formed countries to establish such a principles of sound finance all classes of the community standard. But in the opinion of the conference it is usemust contribute their share. Industry must be so or- less to attempt to fix the ratio of existing fiduciary currenganized as to encourage the maximum production on the cies to their normal gold value. Unless the condition of part both of capital and of labor, as by such production the country concerned was sufficiently favorable to make alone will those improved conditions of life be obtained the fixing of such a ratio unnecessary, it could not be which it is the aim of every country to secure for its people. maintained. All classes of the population, and particularly the wealthy, The reversion to, or establishment of, an effective gold must be prepared willingly to accept the charges neces- standard by any means other than devaluation would in sary to remedy the present situation. Above all, to fill many cases demand enormous deflation, and it is certain up the gap between the supply of and the demand for that such deflation, if and when undertaken, must be commodities, it is the duty of every patriotic citizen to carried out gradually and with great caution, otherwise practice the strictest possible economy and so to con- the disturbance to trade and credit might prove disastrous. tribute his maximum effort to the common weal. Such The conference does not recommend any attempt to private action is the indispensable basis for the fiscal stabilize the value of gold and gravely doubts whether measures required to restore public finances. any such attempt could succeed. It believes that neither DECEMBER, 1920. FEDERAL RESERVE BULLETIN. 1291 an international currency nor an international unit of FINISHING CREDITS. account would serve any useful purpose or remove any of the difficulties from which international exchange The attention of the conference has also been called to suffers to-day. the present system of "finishing credits"—that is to say, of credits under which a lien in favor of the exporter or a CENTRAL BANKS OF ISSUE. banker is maintained on the .raw material in all its different stages and upon the proceeds of the manufactured article. The conference is of opinion that in countries where The council of the league is recommended to draw the there is no central bank of issue, one should be established, attention of the different Governments to this question and if the assistance of foreign capital were required for and to summon an advisory body of legal experts and busithe promotion of such a bank, some form of international ness men to specify the legislative action needed to attain control might be necessary. the desired object in each of the countries concerned. Attempts to limit fluctuations in exchange by imposing artificial control on exchange operations are futile and MISCELLANEOUS PROPOSALS. mischievous. In so far as they are effective they falsify the market, tend to remove natural correctives to such Apart from the above-mentioned proposals, the conferfluctuations and interfere with free dealings in forward ence that the activities of the league might useexchange which are so necessary to enable traders to fully believes be directed toward promoting certain reforms and eliminate from their calculations a margin to cover the collecting the relevant information required to facilitate risks of exchange, which would otherwise contribute to credit operations. In this connection the conference conthe rise in prices. siders it well to draw attention to the advantages of making progress under each of the following heads: EXTERNAL CREDITS. Unification of the laws relating to bills of exchange and of lading. The conference recognizes, however, that any general bills The reciprocal treatment" of the branches of foreign improvement in the situation requires a considerable banks in different countries. period of time, and that in present circumstances it is The publication of financial information in a clear, not possible for certain countries to restore their economic comparative form. activity without assistance from abroad. This assistance The examination of claims by the holders of bonds, the is required for periods which exceed the normal term of interest on which is in arrear. commercial operations. An international understanding on the subject of lost, This assistance, however, can only be effectively accorded stolen, or destroyed securities. to countries which are prepared to cooperate with one The establishment of an international clearing house. another in the restoration of economic life and to make international understanding which, while insuring every effort to bring about within their own frontiers the theAndue payment by everyone of his full share of taxation, sincere collaboration of all groups of citizens and to secure would avoid imposition of double taxation which is conditions which give to work and thrift liberty to produce at present antheobstacle to the placing of investments their full results. The conference does not believe that apart from the abroad. It will be seen that these recommendations involve both particular decisions dictated by national interests or by internal action by the several Governments and also considerations of humanity, credits should be accorded international cooperation. For the measures taken in directly by governments. their respective countries the several Governments are and must, of course, remain responsible, though on cerNEW CREDIT ORGANIZATION. tain questions the conference has ventured respectfully to tender to them its advice. The conference makes the following recommendations: The conference is unanimous, however, in believing An international organization should be formed and placed that national action is not by itself sufficient. Interat the disposal of States desiring to have resort to credit national cooperation, of which the conference itself is the for the purpose of paying for their essential imports. first effort and example, must continue and develop, and These States would then notify the assets which they are in this the League of Nations must take the initiative. prepared to pledge as security for the sake of obtaining The specific recommendations now made, such as the these credits and would come to an understanding with proposal to form a new international credits organization, the international organization as to the conditions under are only instances of the measures of international cooperawhich these assets would be administered. tion which require to be elaborated in more detail. The bonds issued against this guaranty would be used The work of the present conference has been a comas collateral for credits intended to cover the cost of mencement only. It will be necessary to follow up the commodities. diagnosis now arrived at by a systematic study of the A plan, the details of which are set out in the annex comparative progress made in the solution of the present to this report, *is unanimously recommended by the difficulties and by continued collaboration in devising conference, which considers that a committee of financiers new proposals to meet new circumstances as they develop. and business men should be nominated forthwith by For this purpose and for the work of a continuous character the Council of the League of Nations for the purpose of which each of the commissions lias recommended within defining the measures necessary to give practical effect to its own sphere, a permanent organization will be necesthis proposal. sary, and it may be desirable for the conference itself to meet again at a later date. EXPORT CREDIT INSURANCE. In this connection, the terms of reference of the present conference were, as already stated, limited by the council An extension on international lines of the existing of the league. The conference has never sought to oversystem of export credit insurance would also in many step the limits which the Council of the League of Nations instances be of great value in developing trade with coun- set to the scope of its deliberations. It, however, feels tries where the uncertainty of political and social condi- justified in associating itself with the hope expressed by tions give rise to a lack of confidence. The conference M. Leon Bourgeois in his report to the council of April believes that an extension of this system is worthy of con- 5 last, to the effect that the economic uncertainty which sideration and that it should be further examined in detail besets alike the countries which are entitled to receive by experts. and the countries which are under an obligation to pay 1292 FEDERAL RESERVE BULLETIN". reparation claims may speedily be removed, since the settlement of this question is indispensable not only for the reconstruction of the countries devastated by the war—a matter of capital importance to the reestablishment of Europe's economic equilibrium—but also for the recovery of the States on whom the burden of this reparation lies. IV. THE UNANIMOUS CHARACTER OF THE RECOMMENDATIONS. Some of the recommendations of the conference may appear axiomatic in character rather than original contributions to the financial problem of the world. Their adoption, however, would mean a fundamental change in the policies of the great majority of European countries. It may, for example, seem almost a platitude to say that it is essential that Governments should meet their ordinary current expenditure out of their ordinary current revenue, and that, if they do not do so, the inflation and an increased cost of living are inevitable. In nearly 3 out of 4 of the countries represented at the conference, however, and in nearly 11 out of 12 of European countries, budgets do not at present balance and many of them show no prospect of doing so in the near future. In these circumstances the recommendations made collectively and unanimously by the conference may perhaps claim a special force and significance. The members of the conference venture to call special attention to the way in which, selected by the Governments of 39 countries representing about 75 per cent of the population of the world, they have been able through this fortnight's discussion to arrive at a general agreement as to the main features of the world's economic and financial position, and some at least of the most important measures urgently required for its restoration. They therefore have been able to give to their suggestions the force of collective and unanimous recommendations. Whatever may be the future of our positive proposals, the conference can not have been in vain. It has been a gathering unique in the history of the world. It has not been a gathering of statesmen, working at the solution of political difficulties in the interest of their particular countries; it has been a gathering of experts from all nations working for the solution of the common problem of the whole world. Such differences and divergencies of view as may have existed were brought to the common stock, and all alike have benefited by the interchange of views which resulted. As the work of the conference and its commissions proceeded, there developed a spirit of close and intimate cooperation such as might scarcely have been thought possible. That cooperation is in itself a factor of the utmost importance. Each country has had the opportunity of presenting to the rest of the world its special difficulties, its particular anxieties, and all have contributed toward finding a solution. REMARKS OF THE AMERICAN REPRESENTATIVE. An extract from the remarks of Mr. Boyden, unofficial representative of the United States of America, at the afternoon session of Tuesday, September 28, of the International Financial Conference, held in Brussels, 1920, is printed below: * * * I can refer the gentlemen present, many of whom have doubtless in their minds the possibility of aid in the way of credit or otherwise from the United States, to the policy of our Government in that respect, which has been expressed in the letter from Mr. Glass, which is contained in the first printed document which was presented to this conference. That letter expresses the official opinion of our Treasury. It was DECEMBER, 1920. confirmed by the present Secretary of the Treasury, Mr. Houston, shortly after he took office, and so 1 do not go beyond my authority for a statement of our governmental position with regard to the possibility of Government loans and refer you to those authorized Government statements. Beyond that there will always be the friendly and charitable spirit of the American people; that has been enormous, it continues, and my personal faith is that it will continue, and yet, after all, the result of charity can but be small. Further, there is the possibility of relations in ordinary business ways. America is a business nation, America is always ready for business, and America will be ready to do business even more than she is now doing with Europe whenever conditions are such that business can be done, but at present it is my personal view that Americans will find it difficult to convince themselves in large numbers and to great amounts that Europe under present conditions is a good business risk. I ask you, gentlemen, to bear in mind first that Americans as a whole have never accustomed themselves to sending their money into foreign countries; that is an unfortunate fact from the present point of view. We, as individuals who have surpluses to invest, have always found opportunities for investment at home and have never grown into the habit largely of sending our money abroad. When you add to that the fact that Europe has gone through this terrible war and recognize the conditions which one sees in Europe, you have in your mind's eye a picture of conditions which will enable you as financiers to see something in the way in which Americans regard investment abroad; and yet that investment is now going on and will continue to go on, but only to the extent that our business men find it is justified by the conditions. Our business men will see that it is justified by the conditions as they see and realize how much Europe is actually doing now and has done already to readjust these conditions, and as they see a growing feeling of harmony and unity among these separated States in Europe. If America could see advance toward something in the way of economic union among the different States of Europe; if America could see gradually coming about a decrease in the hostility which reigns to a large extent among these different States, you would then find the psychology of the American business man very much changed as to conditions over here. The contrast between these States over in Europe, separated by customs boundaries, separated by laws of demarkation between different nationalities jealous of each other, separated in every way—the contrast, I say, between that condition of things and the state of things which exists between our States of the United States is a striking one to the American. He sees how the absence of these boundaries enables the United States to do business from the Atlantic to the Pacific, from the boundary of Mexico to the boundary of Canada, and how much that facilitates the ordinary interchange of business commodities and all the relations of life. He sees contrasted with that, over here in Europe, the different States, each working largely for itself and all failing to work in harmony. When you see growing out of this situation something more in the way of union among the States in Europe you will see this change of which I speak, in the psychology of the American business man. And this conference, gentlemen, will have something to do toward leading to that state of things. The fact that you gentlemen representing these different countries are able to gather in this hall and talk together in the friendly spirit in which you are talking, and will talk, will aid in that. The fact that the league has invited here representatives of the nations who were vanquished in this war will help America to appreciate that there is a chance that Europe may get together. I congratulate the league on the fact that it has taken this step and that we are to-day to listen to the representatives of the vanquished nations. When a struggle like this has ended it is for the victors to go more than half way, and I DECEMBER, 1920. FEDERAL RESERVE BULLETIN. am glad that the league has done something in the way of going to meet those men against whom we were fighting as we believe for correct principles. That union, gentlemen, will come. One of the members spoke yesterday of the fact that union in South Africa had brought about good results. We in America always have in our minds the fact that some 60 years ago our country was divided over a fight regarding principles which were held sacred both by the North and by the South, and that to-day our country is as united as any country in the world, and that the ravages and passions which were aroused by that time have disappeared. So we look forward to something of that kind. It will take time, but we hope that all you gentlemen will take away from this convention this idea, that cooperation in Europe is one of the foundation principles of European rehabilitation; that the spirit of good will is an economic principle which it is worth while for this convention to emphasize; and that this convention may well take for one of its mottoes, for one of its resolutions, the language which you all see behind the President, 'Tunion fait la force." 1293 best information available relative to retail price changes. It would appear that information covering price changes at six months interval would be sufficient for the purpose at hand. Determination of proportion of expenditures for various purposes.—A questionnaire was prepared and distributed to all employees of Federal Reserve Banks receiving salaries of less than $5,000 per annum, requesting certain information relative to expenditures for the calendar year 1919. The questionnaire was divided into two sections, one to be filled in by married individuals, heads of families, and all others who for one reason or another could best give the expenditures of a family group rather than their own individual expenditures, the other to be used by those giving their own individual expenditures. Allowing for the discard Adjusting Salaries of Bank Employees to Meet of faulty schedules, the following are the total Changes in the Cost of Living. number of schedules which were found usable: The following is a description of a plan deIndividuals. vised for ascertaining changes in the cost of living of bank employees, with a view to affordFederal FamiNot living at Living at home. Total. Reserve ing a basis for changes in salaries in accordance lies. home. district. with such changes in the cost of living. It is based upon certain information obtained by Males. Females. Males. Females. the Division of Analysis and Research in a study made some time ago and represents in 1 . 11 11 149 372 86 115 2 401 2,148 71 51 806 819 substance part of the report of the division. 11 3 33 178 48 79 7 464 172 97 144 24 27 The problems involved in measuring changes 4 . 60 295 5 41 124 11 59 in the cost of living are twofold. 20 32 41 172 22 57 6 . 38 105 156 20 66 227 (1) The determination of changes in prices 78 . 30 273 45 100 22 76 31 164 19 57 9 . 40 of various classes of consumption goods, and 17 190 32 40 31 70 17 (2) The determination (in order to give 10 11 220 21 35 22 45 97 40 188 12 26 16 94 proper weighting to such price changes) of the 12 934 5,120 percentage of the total expenditures of a typical 1,680 346 259 Total... 1,901 family or individual going toward food, rent, clothing, etc., in each salary group which is basis was thus afforded for determining considered. Any single set of such figures theA proportionate for each purwould, of course, be confined to one locality, pose in each of the expenditures cities in which Federal Rebut the method would be substantially accu- serve Banks are located. The salary groups rate and would be applicable to other sections which were employed are as follows: as well. $2,400 and under $2,700. $600. It should be noted that this study does not Underand $2,700 and under $3,000. under $900. consider the extent to which salaries in the $600 $3,000 and under $3,300. $900 and under $1,200. past have been adjusted to changes in the cost $1,200 and under $1,500. $3,300 and under $3,600. $3,600 and under $3,900. of living, nor does it attempt to compare pres- $1,500 and under $1,800. $3,900 and over. ent salaries with any minimum cost of living $1,800 and under $2,100. standard, such as has been prepared by the $2,100 and under $2,400. Little dependency is to be placed on the inBureau of Labor Statistics for Washington, D. C, as well as for various coal mining centers. formation relative to individuals in the salary Measurement of price fluctuations.—The Bu- groups under $600, for the reason that the mareau of Labor Statistics has been preparing at jority of these employees were of working age intervals of six months reports showing per- only a part of the calendar year 1919, and thus centage price changes since December, 1914, of for the major part of the year they were not the various classes of consumption goods, working, but usually attending school. The namely, food, rent, clothing, etc., for fourteen returns from those who gave family expendior more cities throughout the United States. tures have been tabulated separately. The It is thought that this material furnishes the returns from those who gave their individual 1294 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. expenditures have been divided (1) on the basis ployees in general. For any one of these cities of whether the individual was living with the then, were it desired by an individual instituimmediate family or nearest relatives, (2) by tion to follow changes in the cost of living, it sex. In the case of those who live with the would be necessary to take the price changes family or nearest relatives it would have been furnished by the Bureau of Labor Statistics at impossible to separate food from rent cost, so six months intervals, and to weight these acthat the individual was therefore asked to give cording to the percentage distribution of exthe sum paid regularly each week to the family penditures shown for the employees of the parin lieu of board and lodging, and the amount ticular salary group under consideration. In spent for food outside of the home. In tabu- this manner it would be possible to obtain lating these returns these two items were added changes for the entire employees of the instituand the resulting figures entitled uiood and tion receiving less than $5,000 per annum. rent." The following figures for the Federal Reserve This information relative to expenditures of Bank of New York show the general character employees of Federal Reserve Banks should be of the data, and are representative of the rerepresentative of the expenditures of bank em- sults obtained. Analysis of returns on questionnaire relative to expenditures during calendar year 1919 of employees of the Federal Reserve Bank of New York. SECTION I. RETURNS OF THOSE WHO GAVE EXPENDITURES FOR THE FAMILY GROUP RATHER THAN FOR THEM SELVES INDIVIDUALLY (MAJORITY FOR THE WHOLE OR A PART OF THE YEAR WERE MARRIED AND LIVING WITH HUSBAND OR WIFE, OR WERE THE MAJOR SUPPORT OF THE FAMILY GROUP IN WHICH THEY LIVED). Expenditures! or— Rent. Salary group. $600 and under $900 $900 and under $1,200 $1,200 and under $1,500... $1,500 and under $1,800... $1,800 and under $2,100... $2,100 and under $2,400... $2,400 and under $2,700... $2,700 and under $3,000... $3,000 and under $3,300... $3,300 and under $3,600... $3,600 and under $3,900... $3,900 and over Number of cases. 7 26 68 95 166 182 99 57 49 20 18 32 Heat and light. Food. Furniture and house furnish- x Miscellaneous. ing Clothing. Per Per Per Per Per Per cent cent cent cent cent cent Average of total Average of total Average of total Average of total Average of total Average of total amount. ex- amount. ex- amount. ex- amount. ex- amount. ex- amount. expendpendpendpendpendpenditure. iture. iture. iture. iture. iture. $291 349 339 334 379 436 463 476 491 641 543 633 26.5 22.2 18.6 17.3 17.4 17.9 17.9 15.8 15.6 19.4 15.4 14.6 $50 60 73 73 77 84 84 95 127 126 123 118 $419 677 821 878 924 960 1,035 1,206 1,177 1,076 1,297 1,557 4.5 3.8 4.0 3.8 3.6 3.4 3.2 3.2 4.0 3.8 3.5 2.7 38.1 43.0 45.0 45.4 42.3 39.4 40.1 39.9 37.4 32.5 36.7 35.9 $179 212 236 276 294 369 398 516 534 552 549 722 16.2 13.4 13.0 14.3 13.5 15.1 15.4 17.1 16.9 16.7 15.6 16.7 $4 31 111 92 147 135 141 184 264 159 129 215 .4 1.9 6.1 4.8 6.7 5.5 5.5 6.1 8.4 4.8 3.7 5.0 $158 248 244 283 362 453 463 544 557 757 891 1,091 14.3 15.7 13.4 14.6 16.6" 18.6 17.9 18.0 17.7 22.9 25.2 25.2 SECTION I I . R E T U R N S OF THOSE W H O GAVE T H E I R E X P E N D I T U R E S AS INDIVIDUALS R A T H E R THAN E X P E N D I T U R E S . CLASSIFIED BY S E X . A.—Returns of those who, for the major portion of the pear, did not live with immediate family or nearest relatives. Total expenditures, average ainoi] nt $1 101 1*577 1,824 1,936 2,183 2,437 2,584 3,021 3,150 3,311 3,532 4,336 FAMILY Expenditures for— Rent. Salary group. Number of cases. Average amount. Clothing. Food. Per cent of total Average expend- amount. iture. Per cent of total Average expend- amount. iture. Miscellaneous. Per cent of total Average expend- amount. iture. Total expenditures, Per cent average of total amount. expenditure. MALE. Under $600 $600 and under $900 $900 and under $1,200 $1,200 and under $1,500.. $1,500 and under $1,800.. $1,800 and under $2,100.. $2,100 and under $2,400.. $2,400 and over $317 182 171 255 348 358 341 524 19.7 23.7 14.6 17.3 22.2 19.4 17.8 18.3 $599 304 540 613 632 615 743 929 37.3 39.4 46.0 41.5 40.4 33.3 38.7 32.4 $257 133 194 198 238 229 296 316 212 246 333 298 443 352 468 20.9 19.1 20.6 23.5 20.3 26.8 19.2 22.9 550 380 452 485 512 548 501 728 31.2 34.3 38.0 34.2 35.0 33.1 27.3 35.6 222 267 274 284 360 300 465 16.0 17.3 16.6 13.4 15.3 ! 12.4 14.4 11.0 $433 151 268 412 346 644 559 1,097 26.9 19.6 22.9 27.8 27.1 34.9 29.2 38.3 $1,606 770 1,173 1,478 1,564 1,846 1,919 2,866 459 294 226 327 374 303 682 384 26.0 26.6 19.0 23.0 25.5 18.3 37.1 18.8 1,765 1,108 1,191 1,419 1,468 1,654 1,835 2,045 FEMALE. Under $600. $600 and under $900 $900and under $1,200.... $1,200 and under $1,500.. $1,500 and under $1,800.. $1,800 and under $2,100.. $2,100 and under $2,400.. $2,400 and over 22.0 20.1 22.4 19.3 19.4 21.8 16.4 22.7 DECEMBER, 1920. 1295 FEDERAL RESERVE BULLETIN. SECTION II. RETURNS OF THOSE WHO GAVE THEIR EXPENDITURES AS INDIVIDUALS RATHER THAN FAMILY EXPENDITURES. CLASSIFIED BY SEX-Continued. B.—Returns of those who, for the major portion of the year, lived with immediate family or nearest relative. Expenditures for— Salary group. N umber of cases. Food and rent. Average amount. Clothing. Miscellaneous. Per cent of total expenditure. Average amount. Per cent oitotal expenditure. Average amount. Per cent of total expenditure. Total expenditures, average amount. Under $600 $600 and under $900 $900 and under $1,200... $1,200 and under $1,500. $1,500 and under $1,800. $1,800 and under $2,100. $2,100 and under $2,400. $2,400 and over 16 54 130 79 61 33 19 9 $612 601 681 814 934 1,081 1,073 1,306 58.1 55.4 58.8 57.9 59.0 57.2 54.2 54.1 $205 216 215 247 250 277 281 290 19.5 19.9 18.5 17.5 15.8 14.7 14.2 12.0 $236 268 263 346 401 533 626 818 22.4 24.8 22.7 24.6 25.3 28.2 31.6 33.9 $1,053 1,085 1,159 1,407 1,585 1,891 1,980 2,414 Under $600 $600 and under $900 $900 and under $1,200... $1,200 and under $1,500., $1,500 and under $1,800.. $1,800 and under $2,J00.. $2,100 and under $2,400.. $2,400 and over 19 94 477 170 34 7 3 2 454 520 606 722 804 849 862 781 50.9 51.)0 51.7 52.8 50.8 50.0 48.0 42.6 306 339 369 406 427 460 358 30.1 30.0 29.0 27.0 25.7 25.2 25.6 19.5 170 193 226 277 374 422 472 697 19.1 19.0 19.3 20.2 23.6 24.8 26.3 38.0 892 1,019 1,171 1,368 1,584 1,694 1,794 1,836 Gold Reserves of Principal Banks of Issue, 1910- is not included in this table because no recent figures are at hand. 1920. In the table below are shown the amounts of gold reserves held by the banks of issue and by the Governments of the leading countries of the world, the amounts held by the Governments being limited to the gold held as reserve against currency. The table is in continuation of one published in the FEDERAL RESERVE BULLETIN for February, 1919, page 140. The figures represent actual vault holdings, exclusive of gold held abroad and of foreign credits. Figures for the United States include: (1) Amounts of gold held in the Treasury of the United States at the end of the calendar year and reported among the free assets of the Government, i. e., exclusive of gold cover for gold certificates outstanding, also of amounts of gold held for redemption of Federal Reserve notes. (2) Amounts of gold held by the national banks and reported in their statements to the comptroller nearest the close of the years 19101916. Of the clearing-house certificates reported by the national banks 60 per cent was estimated to represent gold. (3) At the close of 1914-1920 gold holdings of the Federal Reserve Banks. These holdings are exclusive of the amounts of gold held by foreign agencies, but include amounts of the banks' and agents' redemption funds held in the Treasury. A summary of the figures showing gold holdings in 1913 and in 1920, by countries arranged in groups, is shown below. Russia Aggregate gold holdings show an increase of 3,075 millions, or about 97 per cent, for the seven-year period. This growth of gold reserves in central institutions represents in part the result of efforts made by the Governments to withdraw gold from general circulation and to concentrate it in the banks of issue, where it supports fiduciary currency and also is available when international gold payments are to be made. Most of the allied countries show gains in gold, though Italy, Belgium, Rumania and Canada report smaller amounts than seven years earlier. The largest increases in gold holdings in this group are shown for the United States, England, and Japan. The German Reichsbank shows a loss of 19 millions of gold between December 31, 1913, and October 23, 1920. This decrease below the prewar amount is not, however, a measure of the loss of gold by Germany. When the war broke out gold was gathered into the vaults of the central bank from all over the country, the aggregate holdings of the Reichsbank reaching 600 millions at the end of 1916. During the summer of 1917 and the spring of 1918 considerable shipments of gold were made by the Reichsbank to neighboring neutral countries to pay for food and other supplies and to improve the exchange position of the mark, so that by the middle of September, 1918, the gold holdings of the Reichsbank had decreased to 559 million dollars. Following the Brest-Litvosk treaty about 50 millions of gold were 1296 FEDERAL RESERVE BULLETIN. added to the Reichsbank's gold reserves, which reached a total of 607 millions at about the time of the armistice (Nov. 7, 1918). Since then the Reichsbank has lost about 340 millions, a large portion of which was paid out for food after the lifting of the allied blockade. A loss of 206 millions shown for the Austro-Hungarian Bank represents chiefly gold transferred to Germany and figuring among the gold accretions of the Reichsbank during the early period of the war. In the case of Russia the latest available figures are for 1917; since that time large amounts of the gold have left the country, and there are no reliable figures as to the amounts still in Russia. Shipments of gold to obtain credits in Great Britain for the purchase of war materials between October, 1914, and the early part of 1917 decreased the Russian stock of gold by about 330 million dollars. Gold to the amount of 333 million dollars is known to have fallen into the hands of the Kolchak Government, about 123 millions of which was paid for military supplies to Allied Governments and to an Anglo-American syndicate. Part of the remaining 210 millions was recaptured by Bolshevik troops. From the above data, published by the former Russian assistant minister of finance, Novitsky, in the New York Times of July 4, 1920, it appears that the Bolshevik authorities at one time or another controlled, in addition to over 60 millions of Rumanian gold, between 400 and 500 millions of gold formerly held by the Russian State Bank. Practically the entire gold reserve of the Rumanian Central Bank DECEMBER, 1920. was transferred to Russia for safekeeping during the German invasion, and has not yet been returned. All the neutral countries show large gains in gold for the period, the aggregate gain being about 1,034 millions. The largest additions to gold reserves among neutral countries are reported by Spain, Netherlands, and Argentina. Central gold reserves of leading countries, 1920 and 1913. [In millions of dollars.] Change between 1913 and 1920. Country. 1920 1913 Increase. Decrease. Total 6,256 3,181 3,075 Allied countries, total 4,436 2,170 2,266 2,098 738 683 204 51 692 170 679 288 59 29 115 65 73 1,406 568 4 United States England France ItalyBelgium Rumania Canada Japan India Central Powers, total Germany Austro-Hungary Neutral countries, total Sweden N orway Denmark N etherlands Spain . Switzerland Argentina Java.'. 95 451 116 386 43 84 8 29 20 305 530 225 260 45 279 251 19 206 1,515 76 39 61 256 474 104 416 89 4ST 27 13 20 61 92 33 225 10 1,034 49 26 41 195 382 71 191 79 DECEMBER, 1920. 1297 FEDERAL RESERVH BULLETIN. Movement of the gold reserves of the principal countries, 1910-1920. [In thousands of dollars.] United States Bank of Treasury, England national and banks, and rency curnote Federal reserves. Reserve Banks. Dec. 3 1 — 1910 644,443 1911 658,925 1912 661,543 1913 691,514 1914 827,703 1,312,329 1915 1916 1,442,229 1917 1,739,750 2,245,720 1918 2,097,713 1919 Latest available date 12,097,843 in 1920 Bank of Denmark. Dec. 3 1 1910 . .. 1911 1912 1913 1914 1915 1916 1917 1918 1919 Latest available date in 1920 a1 Oct. 16-29. Nov 29. 2 Oct. 27. 34 Oct. 28. June 30. s Oct. 28. e Oct. 23. 7 Aug. 23. s Oct. 23. 9 Nov. 8. w Oct. 30. " Oct. 18. Russian State Bank. Bank of France. 152,892 157,860 147,594 170,245 428,221 389,205 402,970 422,594 523,632 583,211 632,924 618,855 619,009 678,856 802,591 967,950 652,885 639,682 664,017 694,847 2 738,243 3 682,711 B ank of Netherlands. Bank of Spain. 18,319 18,556 19,465 19,666 24,506 29,833 42,847 46,611 52,159 60,807 49,948 56,426 65,032 60,898 83,663 172,530 236,217 280,689 277,155 256,204 79,280 80,693 84,384 92,490 110,444 166,414 241,424 379,597 430,072 472,041 10 60,994 255,809 2 473,660 Italy; note reserves of the 3 banks of issue and of the National Treasury. 634,300 648,500 683,900 786,800 803,400 831,200 758,396 a 667,041 Bank of Belgium. 273,991 288,515 294,803 288,103 299,759 293,453 255,772 238,931 243,566 203,441 39,816 48,092 55,423 59,131 56,619 4 203,654 5 51,435 51,417 Domestic Conversion gold reCanadian of the serves of Bank of \ Govern- fund Argentine the Bank Switzer- | ment Governof Japan land. ment. reserves. and of the Government. 30,034 31,009 33,416 32,801 45,922 48,275 66,585 69,025 80,041 99,779 15 104,376 German Reichsbank. AustroHungarian Bank. 157 173 184 278 498 581 599 572, 538, 259 6 260,032 India Government rupee reserve held in India. 267,543 261,732 245,113 251,421 213.757 138.758 58,759 53,717 53,074 45,111 21,535 22,758 26,816 27,372 29,088 33,385 49,183 65,513 76,532 75,350 7 45,180 8 75,689 Bank of Java. National Bank . of Ruin ani 179,447 182,394 215,031 224,989 213,906 ^228,939 " 251,158 " 252,390 "269,628 "299,119 67,360 66,228 67,814 64,963 64,062 68,187 113,411 229,981 225,821 349,947 13 30,103 13 75,688 13 95,293 13 72,780 30,202 41,361 38,636 86,712 63,842 96,205 13 10,582 13 16,046 13 10,027 13 12,418 1318,804 13 28,984 13 37,051 13 51,600 13 69,817 16 95,205 ""415,828 iM50,644 19 115,632 20 88,819 74,789 100,631 104,077 115,375 94,626 120,335 119,598 120,143 121,261 119,212 12 13 14 Bank of Sweden. Bank of Norway. 9,711 10,844 10,814 12,846 11,181 18,028 33,027 31,214 32,691 39,590 9 39,481 Total. 2 200 3,363,894 3,511,640 3,630,571 3,968,206 4,680,290 5,497,204 5,391,976 5,933,409 5,949,674 5,873,530 22 329 6,255,565 (21) (2!) (21) 29,242 29,714 36,264 22 Nov. 6. Mar. 31 of the following year. Exclusive of the gold held in the Argentine legations abroad, and the 10,000,000 gold pesos in the conversion fund of the Banco de la Nacion. • 16 15 Oct. 30. Sept. 30. 17 July 30 (see Revista de Economia Argentina, p. 71) is9 Oct. 15. 1 Oct. 15. 20 Sept. 25. 21 Figures for vault holdings not available. 22 July 17. 1298 FEDERAL RESERVE BULLETIN. New Currency Law for British India. India's coinage and paper currency laws have recently been amended. Following is the resolution promulgating the new law: RESOLUTION. The rate at which the sovereign and the half-sovereign are legal tender in India has been altered from Rs. 15 to Rs. 10 per sovereign by the Indian Coinage (amendment) Act No. XXXVI of 1920. Also the Indian Paper Currency (amendment) Act No. XLV of 1920 authorizes the issue of currency notes against sovereigns and half-sovereigns at the new rate of Rs. 10 per sovereign and against gold bullion at the corresponding rate of rupee 1 for 11.30016 grains troy of fine gold. The Government of India have accordingly decided that, with effect from the 1st October. 1920, sovereigns and half-sovereigns shall be valued at the rate of Rs. 10 per sovereign and gold bullion at rupee 1 for 11.30016 grains troy of fine gold in all Government accounts, inclusive of the accounts of the paper currency and gold standard reserves. (2) Gold mohurs will however continue to be valued at Rs. 15 each in all Government accounts except those of the paper currency reserve. Mohurs can now be held in that reserve at their bullion value only, and when it becomes necessary to place mohurs in the reserve hereafter the difference between their equivalent at the 15-rupee rate and the value at which they can be held in the reserve will be treated as an item of expenditure of Government. (3) All gold and securities held in the paper currency reserve on the 1st October, 1920, will be revalued in accordance with the provisions of the Paper Currency (amendment) Act No. XLV of 1920, and the deficiency in the reserve resulting from the revaluation will be made up by 12 months' Treasury bills of the Government of India issued by the controller of the currency to the reserve. Foreign Branches. There is given below a list of the foreign banking corporatiors organized under State laws doing business under agreement with the Federal Reserve Board, and their foreign branches; foreign banking corporations organized under section 25 (a) of the Federal Reserve Act; and foreign branches of national banks, as of November 18, 1920: BANKS DOING BUSINESS UNDER AGREEMENT WITH THE FEDERAL RESERVE BOARD. American Foreign Banking Corporation, New York City: Brussels, Belgium. Buenos Aires, Argentina. Cali, Colombia. Cristobal, Canal Zone. Harbin, Manchuria. Havana, Cuba. La Vega, Dominican Republic. Manila, Philippine Islands. Panama City, Republic of Panama. Puerto Plata, Dominican Republic. Port-au-Prince, Haiti. Rio de Janeiro, Brazil. Sanchez, Dominican Republic. San Francisco de Macoris, Dominican Republic. San Pedro de Macoris, Dominican Republic. San Pedro Sula, Republic of Honduras. Santiago de Los Caballeros, Dominican Republic. Santo Domingo, Dominican Republic. DECEMBER, 1920. Mercantile Bank of the Americas (Inc.), New York City: Paris, France. Barcelona, Spain. Madrid, Spain. Hamburg, Germany. AQiliated institutions— Mercantile Overseas Corporation— Guyaquil, Ecuador. Banco Mercantil Americano de Colombia— Bogota, Barranquilla, Cartagena, Medellin, Cali, Girardot, Manizales, Honda, Armenia, Bucaramanga, and Cucuta, Colombia. Banco Mercantil Americano del Peru— Lima, Arequipa, Chiclayo, Callao, Trujillo, and Piura, Peru. Banco Mercantil Americano de Caracas— Caracas, La Guayra, Maracaibo, Puerto Cabello, and Valencia, Venezuela. American Mercantile Bank of Brazil— Para and Pernambuco, Brazil. National Bank of Nicaragua— Managua, Bluefields, Leon, and Granada, Nicaragua. Banco Mercantil Americano de Cuba— Havana and Ciego de Avila, Cuba. Banco Mercantil de Costa R i c a San Jose, Costa Rica. Banco Atlantida— La Ceiba, Tegucigalpa, San Pedro Sula, Puerto Cortez, and Tela, Honduras. (A branch office is also maintained by the Mercantile Bank of the Americas (Inc.) in New Orleans, La.) Asia Banking Corporation, New York City: Canton, China. Changsha, China. Hankow, China. Hongkong, China. Manila, Philippine Islands. Peking, China. Shanghai, China. Tientsin, China. International Banking Corporation, New York City: Canton, China. Hankow, China. Harbin, China. Hongkong, China. Peking, China. Shanghai, China. Tientsin, China. Tsingtao, China. London, England. Lyons, France. Bombay, India. Calcutta, India. Rangoon, India. Yokohama, Japan. Kobe, Japan. Batavia, Java. Soerabaya, Java. Panama, Republic of Panama. Colon, Republic of Panama. Cebu, Philippine Islands. Manila, Philippine Islands. Singapore, Straits Settlements. Santo Domingo, Dominican Republic. Sanchez, Dominican Republic. San Pedro de Macoris, Dominican Republic. Santiago, Dominican Republic. Barahona, Dominican Republic. Puerta Plata, Dominican Republic. (A branch office is also maintained by the International Banking Corporation in San Francisco, Calif.) DECEMBER, 1920. 1299 FEDERAL RESERVE BULLETIN. Park-Union Foreign Banking Corporation, New York City: National City Bank, New York City—Continued. Cape Town, South Africa. Paris, France. Port of Spain, Trinidad. Shanghai, China. Calle Rondeau, Montevideo, Uruguay. Tokyo, Japan. Montevideo, Uruguay. Yokohama, Japan. Caracas, Venezuela. (Branch offices are also maintained in San FranCiudad Bolivar, Venezuela. cisco, Calif., and Seattle, Wash., by the ParkUnion Foreign Banking Corporation.) Maracaibo, Venezuela. The First National Corporation, Boston, Mass., has Temporarily closed— opened no foreign branches. A branch office of this corMoscow, Russia. poration is maintained at 14 Wall Street, New York City. Petrograd, Russia. The Shawmut Corporation of Boston, Mass., has opened First National Bank, Boston, Mass. no foreign branches. A branch office of this corporation Buenos Aires, Argentina. is maintained at 65 Broadway, New York. The French American Banking Corporation of New York City and the Foreign Credit Corporation of New York State Banks and Trust Companies Admitted. City have opened no foreign or domestic branches. The following list shows the State banks and trust comFOREIGN BANKING CORPORATIONS ORGANIZED UNDER panies which have been admitted to membership in the SECTION 25 (a) OF FEDERAL RESERVE ACT. Federal Reserve System during the month of November, 1920. First Federal Foreign Banking Corporation, New York One thousand four hundred and sixty-two State instiCity. tutions are now members of the system, having a total capital of $506,873,000, total surplus of $498,932,930, and total resources of $10,127,714,260. FOREIGN BRANCHES OF NATIONAL BANKS. National City Bank, New York City: Buenos Aires, Argentina. Plaza Once, Buenos Aires, Argentina. Rosario, Argentina. Brussels, Belgium. Antwerp, Belgium. Bahia, Brazil. Pernambuco, Brazil. Porto Alegre, Brazil. Rio de Janeiro, Brazil. Santos, Brazil. Sao Paulo, Brazil. Barranquilla, Colombia. Bogota, Colombia. Medellin, Colombia. Santiago, Chile. Valparaiso, Chile. Artemisa, Cuba. Bayamo, Cuba. Caibarien, Cuba. Camaguey, Cuba. Cardenas, Cuba. Ciego de Avila, Cuba. Cienfuegos, Cuba. Colon, Cuba. Cruces, Cuba. Cuatro Caminos, Habana, Cuba. Galiano, Habana, Cuba. Guantanamo, Cuba. Habana, Cuba. Manzanillo, Cuba. Matanzas, Cuba. Nuevitas, Cuba. Pinar del Rio, Cuba. Placetas del Norte, Cuba. Remedios, Cuba. Sagua la Grande, Cuba. Sancti Spiritus, Cuba. Santa Clara, Cuba. Santiago, Cuba. Union de Reyes, Cuba. Yaguajay, Cuba. London, England. Genoa, Italy. Lima, Peru. San Juan, Porto Rico. Ponce, Porto Rico. Barcelona, Spain. Madrid, Spain. Name of bank. Capital. Surplus. Total $60,000 $108,553 District No. 4. Adena Commercial Adena, Ohio & Savings Bank, District No. 5. Farmers Bank & Trust Co., Forest City, N.C 100,000 $75,000 1,347,778 50,000 724,939 District No. 6. Commerce Bank & Trust Co., Commerce, Ga Bank of Donalsonville, Donalsonville. Ga Lagrange Banking & Trust Co., Lagrange, Ga 100,000 100.000 250,000 326,635 650,000 4,071,433 District No. 7. Citizens State Bank, Early. Iowa 30,000 Magnolia Savings Bank, Magnolia, Iowa.. 25,000 Security Trust & Savings Bank, Shenandoah, Iowa 60,000 The Hamilton County State Bank, Webster City, Iowa 100,000 Stratford State Bank, Stratford, Wis 50,000 33,000 10,000 421,149 320,837 6,000 395,254 30,000 10,000 1,663,582 459,396 100,000 50,000 867,840 50,000 15,000 907,888 25,000 5,000 331,992 District No. 11, Bay City Bank & Trust Co., Bay City,Tex First State Bank, Bishop, Tex 65,000 25,000 10,000 10,000 807,460 235,131 District No. 12. The Commercial Bank of Turlock, Turlock Calif. J. N. Ireland & Co., Bankers,MaladCity, Idaho Madras State Bank, Madras. Oreg Jackson County Bank, Medford, Oreg 75,000 35,000 1,111,725 40,000 25,000 100,000 12,500 18,000 20,000 612,913 309,972 1,218,732 District No. 8. Saline Trust & Savings Bank, Harrisburg, District No. 10. The Fidelity State Bank, Aurora, Nebr... Meadow Grove State Bank, Meadow Grove, Nebr Withdrawal.—First Trust & Savings Bank, Winamac, Ind. Conversion.—The Superior Savings & Trust Co., Cleveland, Ohio, to the Superior National Bank & Trust Co. of Cleveland, Ohio. 1300 FEDERAL RESERVE BULLETIN. DECEMBER, 1 9 2 0 . Voluntary liquidation.—Leon Savings Bank, Leon, Iowa. Change of place of business.—The Farmers and Stockgrowers Bank of Sweet, Gem County, Idaho, has removed its place of business to Montour, Gem County, Idaho. ber, the latest month for which complete statistics are available, disclose 923 insolvencies for $38,914,659 of liabilities, as against only 463 failures for less than $7,000,000 in the corresponding month of last year. It thus appears that the October defaults are practically double in number those of that month of 1919, while the expansion in the indebtedness is relatively much greater, owing to an unusual number of insolvencies of exceptional magnitude. Fiduciary Powers Granted to National Banks. The October failures, moreover, are larger in number than those of any month since March, 1918, and the liabilities are The applications of the following banks for permission to the heaviest of all months back to April of 1915. Separated act under section 11 (k) of the Federal Reserve Act have a ?cording to Federal Reserve districts, the October statebeen approved by the Board during the month of ment shows more failures than in that month of 1919 in November, 1920: e ^ery instance, except in the sixth district, where there DISTRICT NO. 2. is no change, and in the ninth district, where a reduction Trustee, exe :'or, administrator, registrar of stocks and bonds, guar- oi one default is seen. Aside from the first district, where dian of esta ;, assignee, receiver, committee of estates of lunatics: t\ ere is a moderate decrease, the October liabilities show The Secon National Bank of Hoboken, Hoboken, N. J. ii .creases in every case, and some of the differences are The First i\ fional Bank of Ridgewood, Ridgewood, N. J. striking. DISTRICT NO. 3. Failures during October. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics: The County National Bank of Lock Haven, Lock Haven, Pa. The First National Bank, Merchantville, N. J. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver. The Broad Street National Bank, Philadelphia, Pa. Number. Liabilities. Districts. First Second Third Trustee, executor, administrator, registrar of stocks and bonds, guardian Fourth.. of estates, assignee, receiver: Fifth The Central National Bank of Cleveland, Cleveland, Ohio. Sixth The Superior National Bank and Trust Company, Cleveland, Ohio. Seventh Trustee, executor, administrator, registrar of stocks and bonds, guardian Eighth of estates, assignee, receiver and committee of estates of lunatics. Ninth The First National Bank, Sharon, Pa. Tenth Fleventh DISTRICT NO. 7. Twelfth Guardian of estates, assignee, receiver, committee of estates of lunatics: Total The Des Moines National Bank, Des Moines, Iowa. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver and committee of estates of lunatics. The First National Bank, Aurelia, Iowa. DISTRICT NO. 4. . . ... 1920 1919 59 275 27 69 58 38 122 47 16 41 42 129 50 86 24 49 21 38 59 23 17 27 22 47 $938,595 15,462,866 2,902,609 1,933,886 1,644,702 613,307 6,259,566 1,280,507 83,769 775,366 2,947,957 4,071,529 $1,016,079 1,650,441 341,294 763,728 119,567 256,923 715,161 249,471 64,709 361,861 263,516 1,069,216 923 463 38,914,659 6,871,966 1920 1919 New National Bank Charters. DISTRICT NO. 8. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics: The St. Claire National Bank of Belleville, Belleville, 111. The First National Bank of Marion, Marion, 111. The Comptroller of the Currency reports the following increases and reductions in the number and capital of national banks during the period from October 30, to November 26, 1920, inclusive: DISTRICT NO. 10. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics: The First National Bank, Emerson, Nebr. The First National Bank of Randolph, Randolph, Nebr. Trustee, executor, registrar of stocks and bonds and guardian of estates. The First National Bank, Marysville, Mo. Acceptances to 100 Per Cent. Since the issuance of the November BULLETIN the following bank has been authorized by the Federal Reserve Board to accept drafts and bills of exchange up to 100 per cent of its capital and surplus: Security National Bank of Oklahoma City, Okla. Commercial Failures Reported. The tendency toward increase in the country's business mortality has become more sharply denned, and the 746 commercial failures reported to R. G. Dun & Co. during three weeks of November materially exceed the 408 defaults of the same period of 1919. The returns for Octo- Banks. Amount. 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 under the act of June 3, 1864) 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 under the act of June 3,1864) Aggregate capital reduction Consolidation of national banks under the act of Nov. 7, 1918 Capital The foregoing statement shows the aggregate of increased capital for the period of the banks embraced in statement was Against this there was a reduction of capital owing to liquidation (other than for consolidation with other national banks under the act of June 3, 1864), and reductions of capital of Net increases.. $2,110,000 890,000 34 ,000,000 2,,225,000 0 2, ,225,000 730,000 3,000,000 2,225,000 775,000 DECEMBER, 1920. FEDERAL RESERVE BULLETIN. 1301 RULINGS OF THE FEDERAL RESERVE BOARD. Acceptances against domestic shipping documents. The Federal Reserve Board has been asked to rule upon the eligibility of bankers' acceptances created under the following circumstances: Cottonseed oil is sold and shipped by a mill to a refiner. The mill draws a sight draft upon the refiner and attaches the bill of lading covering the cottonseed oil shipped. Upon receipt of the sight draft with bill of lading attached, the refiner pays the sight draft and retains the bill of lading. The refiner desires to draw 90-day drafts for acceptance by his bank, the bill of lading to be attached to the draft at the time of acceptance but to be returned to the refiner immediately thereafter. The facts which have been presented to the Board do not indicate how long a period of time it takes for the completion of the shipment from the mill to the refiner, but it is to be inferred that the shipment will be concluded shortly after the drawing of the drafts by the refiner. In fact it is urged that the drafts must be drawn for 90 days, because it will require at least that time before the refiner can refine the cottonseed oil and reship the finished product and receive payment therefor. The Federal Reserve Board is of the opinion that drafts drawn under these or similar circumstances are not eligible for rediscount by Federal Reserve Banks. The Board has heretofore ruled that drafts drawn by the purchaser of goods and secured at the time of acceptance by bills of lading covering the goods bought are not eligible unless.the proceeds are to be used to pay for the goods. (FEDERAL RESERVE BULLETIN, granted upon the borrower's promissory note rather than by means of bankers' acceptances. In the ruling in the January, 1920, BULLETIN it was said with reference to certain renewal acceptances "the spirit of the law does not contemplate that acceptances based upon the domestic shipment of goods shall be used as a cloak to finance the carrying of those goods throughout the process of manufacture into finished products." The principle there stated is equally applicable to original acceptances based upon the domestic shipment of goods. Regulation A of the Board's regulations, series of 1920, provides in section B, subdivision (c) (2) that— Although a Federal Reserve Bank may rediscount an acceptance having a maturity at the time of rediscount of not more than three months, exclusive of days of grace, it may decline to rediscount any acceptance the maturity of which is in excess of the actual or customary period of credit required to finance the underlying transaction or which is in excess of that period reasonably necessary to finance such transaction. Where bankers' acceptances are drawn against bills of lading, the underlying transaction is, of course, the domestic shipment of the goods covered by the bill of lading. The period during which the acceptances are to run should, therefore, have some relation to the period of time actually required for the shipment. The acceptance of drafts secured by bills of lading for the primary purpose of providing the borrower with working capital during the period required to manufacture and resell the goods covered by the bills of lading is an abuse of the domestic acceptance privilege, which should be carefully guarded against; May, 1917, p. 380; FEDERAL RESERVE BUL- and Federal Reserve Banks should decline to LETIN, Jan., 1920, p.. 66.) Under the facts rediscount or purchase acceptances made for which have been presented to the Board in the such purpose. present case, it is not clear whether the refiner is to use the proceeds of the bankers' acceptance to pay the mill for the cottonseed oil Agricultural implement paper. The Federal Reserve Board receives from covered by the bill of lading. If not, the acceptance would be ineligible upon this time to time inquiries with reference to the eligibility for rediscount by Federal Reserve ground. Furthermore, even though it should appear- Banks of paper arising out of the purchase of that the refiner is to use the proceeds of the agricultural implements and farm machinery draft to pay for the cottonseed oil purchased, of various kinds. In view of these inquiries the circumstances would not, in the Board's the Board has made the following ruling: _ Definition of eligible commercial and agriculopinion, justify the issuance of a 90-day : acceptance credit, since it is apparent that the tural paper.- -Tae regulations of the Federal credit is desired for the purpose of adding to Reserve Board define eligible commercial and the working capital of the borrower rather than agricultural paper as notes, drafts, or bills of to finance the shipment of goods during the exchange which have been issued or drawn, or period that the shipment is continuing. A tli.i proceeds of which have been used or are to credit for such a purpose should, of course, be be used in the first instance, in producing, pur- 1302 FEDERAL RESERVE BULLETIN. chasing, carrying, or marketing goods (including goods, wares, merchandise, or agricultural products, including live stock) in one or more of the steps of the process of production, manufacture, or distribution. If a note, draft, or bill of exchange has been issued or drawn, or the proceeds have been or are to be used, for an agricultural purpose, that note, draft, or bill of exchange may be eligible for rediscount if it has a maturity at the time of rediscount of not more than six months, exclusive of days of grace. On the other hand, if a note, draft, or bill of exchange has been issued or drawn, or the proceeds have been or are to be used for a commercial purpose, it will not be eligible for rediscount if it has a maturity at the time of rediscount in excess of 90 da}^s, exclusive of days of grace. The Board's regulations further provide that no note, draft, or bill of exchange is eligible for rediscount if the proceeds have been or are to be used for permanent or fixed investments of any kind, such as land, buildings, fixed machinery, or for any other capital purpose. Tvx) general classes of eligible agricultural and commercial paper.—It will be observed that there are two general classes of eligible agricultural and commercial paper—(1) paper which is eligible because issued or drawn for an agricultural or commercial purpose, and (2) paper which is eligible because the proceeds have been or are to be used for an agricultural or commercial purpose. Notes given in payment for articles purchased.—Since the purchase and sale of goods of any character is a commercial transaction from the standpoint of the seller, a note of a buyer given to the seller in payment for articles urchased is a note which has been " issued or rawn" for a commercial purpose. Such a note may, therefore, be eligible for rediscount irrespective of whether or not the articles purchased will constitute a permament or fixed investment in the hands of the ultimate producer. This is true whether the buyer is a dealer, purchasing articles for resale, or is a farmer, purchasing articles for his own use. S Notes the proceeds of which are used to pur- chase articles.—If a note is not " issued or drawn" for a commercial or agricultural purpose, its eligibility or ineligibility for rediscount must be determined by the purpose for which the proceeds have been or are to be used. The use of proceeds to purchase goods for resale is a commercial purpose, even though the articles are of such a character that they must be considered permanent investments in in the hands of those* who ultimately purchased them. Consequently, the note of a dealer, discounted by him at his local bank to provide DECEMBER,, 1920. funds to purchase articles for resale, may be eligible for rediscount as commercial paper irrespective of the character of such articles. A note of a farmer, however, discounted by him at his local bank to provide funds with which to purchase articles for agricultural uses is eligible or ineligible for rediscount according to the character of such articles. The farmer's note is ineligible for rediscount if the articles are in the nature of a permanent or fixed investment; but, on the other hand, if they are articles which are for agricultural uses and which have to be replaced from time to time, the farmer's note may be eligible for rediscount as agricultural paper. Articles in the nature of pemaanent or fixed investments.—Whether or not given articles are in the nature of permanent or fixed investments, as that term is used in the Board's regulations, is a question which depends upon the circumstances in each particular case. The Board has ruled that farm tools, agricultural implements and machinery, and other farmoperating equipment do not constitute permanent or fixed investments when they are of such a character that they have to be replaced within a comparatively short time, so that it may be assumed that a farmer will have to spend a certain amount of money annually and regularly for the purchase and replacement of equipment of this kind (FEDERAL RESERVE BULLETIN, Feb., 1916, p. 67). So, also, the Board has specifically ruled that a tractor, like horses and mules, bought for farm work and purchased with several years' use in view, does not constitute a permanent, or fixed investment, and that a note the proceeds of which are used to pay for such a tractor may be eligible agricultural paper (FEDERAL " R E SERVE BULLETIN, Apr., 1918, p. 309). On the other hand, the Board has ruled that a silo is a permanent or fixed investment, and that a note the proceeds of which have been used to build a silo is not eligible agricultural paper (FEDERAL RESERVE BULLETIN, Oct., 1918, p. 971). The Board has also ruled, upon the basis of the facts in the particular case, that an electric system furnishing light and power for an individual farm is in the nature of a permanent or fixed investment within the meaning of the Board's regulations. Distinction between agricultural paper and commercial paper.—The purchase and sale of any articles or commodities including agricultural products is a commercial rather than an agricultural transaction. Consequently the note of a dealer, whether it is given in payment for articles or commodities purchased for resale or is discounted by the dealer at his bank to provide funds with which to pur- DECEMBER, 1920. FEDERAL RESERVE BULLETIN.. chase such articles or commodities, can be eligible for rediscount only as commercial paper, even though the articles or commodities will be used by the ultimate purchasers for agricultural purposes. Such a note can be eligible for rediscount, therefore, only when it has a maturity at the time of rediscount of not more than 90 days. The note of a farmer, however, given in payment for articles or commodities purchased, may be considered agricultural paper which is eligible for rediscount when it has a maturity at the time of rediscount of not exceeding six months, provided that the articles or commodities purchased are to be used by the farmer for agricultural purposes and are not in the nature of permanent or fixed investments. So also, of course, the note of a farmer, discounted by him at his local bank for the purpose of providing funds to purchase such articles or commodities, may be eligible for rediscount as agricultural paper when it has a maturity at the time of rediscount of not more than six months. Since the purchase and sale of agricultural products is a commercial rather than an agricultural transaction, a note given to a farmer in payment for agricultural products grown by him can not be eligible for rediscount as agricultural 1303 paper, but may be eligible as commercial paper if it has a maturity at the time of rediscount of not more than 90 days. Sams principles apply to drafts as to notes.— In the foregoing statements and discussions of hypothetical cases where payment for goods purchased is made by the buyer giving to the seller a negotiable instrument representing the buyer's obligations, it has been assumed for the sake of brevity that the negotiable instrument would be a note of the buyer. As a matter of fact, in such cases the buyer may either make his own note or accept a draft drawn on him by the seller. In either case, however, the same principles will apply in determining whether the instrument representing the buyer's obligation is commercial paper, which can not be rediscounted if it has a maturity in excess of 90 days, or agricultural paper, which may be rediscounted with a maturity not in excess of six months. No obligation to rediscount paper even though eligible.—It should be understood, of course, that even though a bill or note may technically be eligible for rediscount, a Federal Reserve Bank is under no obligation to rediscount it, but may accept it or refuse it in the exercise of its discretionary power. LAW DEPARTMENT. Right of Federal Reserve Banks to collect checks drawn The suit was originally brought in the Superior Court of Fulton County, Ga., and was removed to the District Court on nonmember banks not remitting at par. of the United States for the Northern District of Georgia, The following is the opinion, filed November by the appellee, the Federal Reserve Bank of Atlanta. 19, 1920, of the United States Circuit Court of The appellants were State banks of Georgia, not members Appeals, Fifth Circuit, in the so-called "Par of the Federal Reserve System. The relief prayed for in Clearance" case instituted against the Federal the petition filed in the State court, was an injunction against the appellees, restraining them from collecting Reserve Bank of Atlanta, last January. The checks drawn on appellants " except in the usual and opinion affirms the decision of the District ordinary channel of collecting checks through correspondCourt of the Northern District of Georgia (see ent banks or clearing houses/' the purpose being to precollection through agents presenting the checks over opinion published on page 496 of the May, 1920, vent the banks' counter. The appellants moved to remand the BULLETIN) and, in a full discussion of the cause to the State court, which was denied, and the bill points at issue, holds that the Federal Reserve was dismissed on the appellees' motion to dismiss for want Banks have the right to collect checks, drawn of equity. The appeal presents the questions of the coron nonmember banks which refuse to remit at rectness"of the rulings of the district court (1) in refusing to remand the case, and (2) in dismissing the bill (on the par, by having such checks presented at the merits. counters of the drawee banks, and that the (1) The jurisdictional amount is conceded to be present. case is one of which the United States district There was no diversity of citizenship claimed. Removal was granted because the cause was considered to be one court has jurisdiction. arising under the Constitution and laws of the United IN THE UNITED STATES CIRCUIT COURT OF APPEALS, FIFTH States. This because (1) the defendant, the Federal Reserve Bank, was incorporated under an act of Congress, CIRCUIT. and was neither a railroad corporation nor a national banking association; and (2) because the appellants' petition or American Bank & Trust Company, et al., appellants, v. bill, as amended, introduced a Federal question into the Federal Reserve Bank of Atlanta, Ga., et al., appel- record, in that it charged the acts of the defendants, lees. sought to be enjoined, to be ultra vires of the powers of the Before Walker and Bryan, circuit judges, and Grubb, appellee, the Reserve Bank, granted by the Federal district judge. Reserve Act and its amendments. If the district court GRUBB, District Judge: had original jurisdiction of the cause of action for either This is an appeal from a decree in equity of the District or both of the reasons mentioned, the cause was properly Court of the United States for the Northern District of removed. The appellants contend that the Federal ReGeorgia, dismissing the bill or petition for want of equity. serve^Bank is a national banking association, the presence 1304 FEDERAL RESERVE BULLETIN. of which as a party defendant would not introduce a question arising under the laws of the United States, and that there is no other such question presented by the appellants' petition or bill. We think the United States district court had original jurisdiction of the cause of action for both of the reasons assigned. The case of Osborn v. Bank of the United States (9th Wheat., 738), supported by many subsequent decisions of the Supreme Court, settles the question of the j urisdiction of the Federal court in cases in which one of the parties is a corporation, which owes its creation to an act of Congress, unless another act of Congress has withdrawn such jurisdiction. Nor is it important whether the Federal incorporation occupies the position of plaintiff or of defendant in the action. This is true unless & long line of Supreme Court decisions, in which jurisdiction was sustained upon this ground, without reference to the position of the corporation in the line-up of the parties, be disregarded. From this, follows the right of a Federal incorporation, made a defendant in a cause in a State court, to remove the cause to the Federal court, unless prohibited by an act of Congress. (Texas & Pacific Railway Co. v. Cody, 166 U. S., 606-609; Washington & Idaho R. R. Co. v. Coeur D'Alene Ry. Co., 160 U. S., 177-193.) Congress has withdrawn jurisdiction only in cases of railroad companies and national banking associations. The contention of appellants is that the Federal Reserve Bank of Atlanta is a national banking association within the meaning of the act of July 12, 1882 (c. 290); the judiciary act of March 3, 1887, as corrected by the act of August 13, 1888 (c. 886, sec. 4);.and by section 24 of the Judicial Code of 1911. The prohibiting clause of the latter is: "And all national banking associations established under the laws of the United States shall for the purpose of all other actions against them, real, personal, or mixed, and all suits in equity, be deemed citizens of the States in which they are respectively located." If this language applies to the Federal Reserve Banks, it withdraws jurisdiction from the Federal courts, in cases in which they are parties, and in which no other ground of jurisdiction appears in the record. We do not think it can be held to apply. At the time of the original limitation of jurisdiction in the act of July 12, 1882, and at the time of its renewals in the judiciary act of 1887, and in the Judicial Code of 1911, Federal Reserve Banks were unknown. The only national banking associations, then existent, were the national banks organized under the national banking laws. The question is whether Congress intended to include within this designation banks to be subsequently created of the nature of the Federal Reserve Banks. The answer will depend upon the result of a comparison instituted between the national banks and the reserve banks, and is to be determined, not so much by points of identity (for all banks have many such) but by points of difference. The important differences between national banks and reserve banks, so far as the solution of this question is concerned are (1) the disparity in the number of each class and (2) that the reserve banks are banks of deposit and discount for other banks only and not for the general public. There are many other important differences but we think the two mentioned are determinative. The one class, small in number, acts as governmental fiscal agencies with no general clientele; the other class serves the public generally and locally, and are necessarily numerous. That all the provisions of the national banking act could be made applicable appropriately or safely to the class of reserve banks, is clearly impossible. Yet the same reasoning that would apply the limitation of jurisdiction imposed upon national banks to reserve banks would make it necessary to apply all other limitations against and grants in favor of national banks to reserve banks. If the Reserve Banks are national banking associations within the meaning of the act of July 12, 1882, and its successors, for one purpose, they are so for all purposes DECEMBER, 1920. of the national banking laws. Such a conclusion would be a dangerous one, and lead to unforseeable consequences. We think it safer to conclude that Congress intended national banking associations to include only those that were then being created or those of a kindred nature that might thereafter be created; and that the differences between ordinary banks of deposit and discount with the public as customers and banks whose only permissible stockholders and customers are the Government and other banks, and which are more governmental agencies than private institutions; are not within the purview of national banking associations, as contemplated by Congress when it enacted the limitation upon the jarisdiction of national banking associations. In view of the paucity in number of the reserve banks, and their more intimate relation to the Government, and their more remote contact with the general public, Congress may well have found reason not to withdraw the jurisdiction of the Federal courts from them by reason of their Federal incorporation; though it had done so in the case of national banks. There is no express withholding of such jurisdiction. To imply it would necessarily lead to other implications so far reaching and difficult to anticipate that we do not think it should be implied. If the fact of Federal incorporation of the Reserve Banks confers jurisdiction on the Federal court, the fact that the officers of the appellee bank are made individual codefendants with it and that they are citizens of Georgia does not prevent removal. (Matter of Dunn, 212 U. S., 374.) (2) The amendment to the bill or petition of appellants charged that the acts of the appellees sought to be enjoined, if committed, would be committed in excess of the powers of the Federal Reserve Bank of Atlanta, and in violation of the provision of the Federal Reserve Act. Paragraph 9 of the amendment charges that "the coercive measures, now threatened, are not only not authorized or required by the terms of the Federal Reserve Act, which includes the charter of defendant reserve bank, but express provision is found therein for the performance of all clearing-house functions, therein imposed in the regular way and through orderly banking channels, applicable to nonmember banks as well as member banks. Wherefore plaintiffs charge that the threatened coercive measures are ultra vires the charter of defendant Reserve Bank and the execution thereof by the individual defendants would be illegal and should be enjoined." The purpose of the petition or bill was not to enforce the collection of compensation for services availed of by the defendant Reserve Bank at their reasonable value under the common law right. It was to compel the defendant bank to avail itself of such services or, as an alternative, to abstain from handling the plaintiffs' check for collection. The bill prayed that the defendant bank be enjoined from presenting petitioners' or plaintiffs' checks for collection in any but the usual way through correspondence and remittance. Section 13 of the Federal Reserve Act provided that "no such charges (for remission) shall be made against the Federal Reserve Banks." Appellants' contention is that this prohibition prevents the Federal Reserve Banks from expending money in any way for the collection and remission of the proceeds of checks and drafts drawn on nonmember and nondepositing banks and that any attempt to collect such checks and drafts by presenting them over the counter to drawee banks which would not remit for them at par was unauthorized and ultra vires of the powers of the Reserve Banks under the Federal Reserve Act; and appellants ask that the defendant bank be enjoined from handling such checks and drafts in the manner stated for that reason. Appellee, the Reserve Bank, assertsits right under the same provision of the Federal Reserve Act to collect such checks and drafts by any method, provided it makes no payments to remitting banks for services in remitting. Plaintiffs, cause of action was the alleged wrong asserted by them to be caused by such collections. One ground upon which DECEMBER, 1920. FEDERAL RESERVE BULLETIN. the wrong was urged is that the Reserve Bank is forbidden by the Reserve Act to make collection of checks and drafts in this manner. This presents for decision the proper construction of the quoted provisions of the Federal Reserve Act, and it was presented in the plaintiffs' own statement of their cause of action in the amendment to the bill and not as a suggested or anticipated defense which the defendants might be expected to set up as an answer to the plaintiffs' cause of action. The solution of this question depends upon the construction to be given sections 13 and 16 of the Federal Reserve Act and not merely to a chartered power of the defendant bank. The plaintiffs having injected this Federal question into their statement of their cause of action the case was thereby made removable as one arising under the laws of the United States. We think the district court of the United States properly entertained jurisdiction for both reasons. Coming to the merits, the appellants' cause of action is the prevention by injunction of the Federal Reserve Bank of Atlanta from collecting checks drawn on appellants' banks, in any other way than by correspondence and the remitting of the proceeds of the check by the bank on which it was drawn. The usage of the complaining banks had been to make a deduction from the amount of the check in remitting the proceeds to cover the so-called ''exchange " or cost of remitting. This charge could only be •applied in cases in which the check was forwarded through the mails to the drawee bank. If the check was presented over the counter of the drawee bank either by the payee or his agent, the full amount of the check was required to be paid, and the drawee bank was defeated in its endeavor to collect exchange on it. The purpose of the bill was to prevent the Federal Reserve Bank from handling checks on appellants and on other nonmember State banks except through the regular channel of correspondence or clearing. Section 13 of the Federal Reserve Act as amended prohibited the Federal Reserve Bank from paying for the cost of remission. Consequently it was disabled from collecting through the regular channel from all banks which insisted on deducting for the cost of remission. In the case of all such banks it had the alternatives of not handling their checks at all or of presenting them for collection over the counters of the drawee banks by agents, express companies, or the postal authorities. One contention of the appellants is that the Federal Reserve Act prohibited the Reserve Banks from handling any check, the collection of which entailed any expense, to whomsoever payable; and that their endeavor to collect checks by presenting them at the counter of the drawee was ultra vires, because expense was necessarily incident to that method. Another contention of appellants is that though the Federal Reserve Bank had the lawful right to handle such checks it was making or intending to make an oppressive use of its right, by so exercising it as to amount to coercion or duress and with a wrongful and malicious motive. If the Federal Reserve Bank, had availed itself of the services of the complaining banks in the remission of the proceeds of checks sent them for collection through the mails, in view of their known usage to deduct for exchange it would have been liable for the reasonable value of such services, except for the statutory inhibition against it. The purpose of the bill, however, is not to collect compensation for services rendered and to which the banks had a property right; but to compel the Federal Reserve Bank to avail itself of services, which it was unwilling to and disabled from accepting, by restraining it from using any method which did not require the use of such services. Complaining banks had no property right that was infringed by the refusal of the Federal Reserve Bank to avail itself of their services in remitting or that a court of equity could be called upon to protect. It was under no legal duty to accept the services of the complaining banks, even had there been no statutory obstacle to its doing so. It also had the legal right to present the checks of the complaining banks to them for payment singly or in numbers over their 1305 counters and it was the absolute duty of the complaining banks to pay the full amount of such checks without deduction, when so presented. This is disputed by appellants only because of the statutory prohibition against the Federal Reserve Banks paying the cost of remission of the proceeds of checks collected by it. It is contended that this provision not only prohibited the Reserve Banks from paying exchange to remitting banks on which the checks were drawn, but also from paying expense of any kind or to any person for collecting checks; and that as a consequence the Federal Reserve Banks were without power to handle any checks for collection, where such collection was attended with expense of any kind. If so, it would follow that the endeavor to collect checks over the counter through paid agents was within the prohibition of the Federal Reserve Act as amended and ultra vires. Whether appellants' construction of the prohibiting clause is correct depends upon the purpose it was intended to subserve. Appellants' contention is that its purpose was to conserve the assets of the Reserve Bank. Appellees' contention is that it was to aid in accomplishing a uniform par clearance system. In view of the purpose of Congress to effect the latter object, we think the appellees' construction is the correct one, and that the prohibition is limited to a charge against and payment of the charge to a remitting bank, and does not prevent the Federal Reserve Banks from expending money for collection of checks in any other way in an endeavor to accomplish a uniform system of par clearance. It follows that the acts of the Federal Reserve Bank complained of are within its legal powers. Conceding that they were ultra vires solely because entailing an unauthorized disposition of the banks' assets, the appellants and intervenors, who were neither stockholders nor creditors of the Reserve Bank, would have no standing to complain of such a disposition, because of a collateral injury to them. The right to make complaint on that ground would be confined to the United States or to individuals who were injured by the depletion of the banks' assets. If the purpose of the prohibition was altogether to save expense to the Federal Reserve Banks and if the statute evinced no policy to prevent the Reserve Banks from handling checks of nonmembers and nondepositing banks, if it incurred no expense, the mere incidental injury that appellants suffered from the handling of such checks would give it no right to complain of an expenditure from which it could suffer no injury. The Federal Reserve Act does not only not evince a purpose to deny to the Reserve Bank the power to collect checks of nonmember and nondepositing banks, but exhibits a general policy to encourage a uniform and universal system, of par clearance, which could only be accomplished by conferring power upon the Reserve Bank to handle checks drawn on all banks upon any terms that might be essential except the payment to the remitting bank of compensation for remitting. The appellants contend further that, even if the Federal Reserve Bank had the right to handle checks of nonmember banks by presenting over the counter, it could not exercise that right oppressively; that it was threatening to do so, and should therefore have been enjoined. The prayer of the bill is not limited to an oppressive use of the method complained of but extends to any use of it whatsoever. The bill seeks to enjoin the appellee bank "from collecting or attempting to collect any check against petitioners or against any other bank in like condition, who may become a party hereto, except in the usual and ordinary channel of collecting checks through correspondent banks or clearing houses, said channels being well established and well understood by defendants and all others familiar with the banking business." Appellants' complaint is of the method and not of an abuse of it. The effect of the writ prayed for would be to entirely prevent the appellee bank from collecting checks in any other way than by transmission to the drawee bank, and the remission of the proceeds by the drawee bank through the 1306 FEDERAL RESERVE BULLETIN. mails; and so to prevent their collection by presentation over the counter even though presented regularly and without accumulation. The right to the relief sought is also based upon the doctrine of conspiracy. An illegal conspiracy is' not predicable upon the doing of a lawful thing by lawful means, even when done in concert or combination. The bill fails to show a concert or combination that would amount to a conspiracy in law, though its object or the means by which it was to be accomplished were unlawful. The acts complained of were those of the defendant, the Federal Reserve Bank. No legal conspiracy could exist between it and its officers, the other defendants. The amended bill charges a conspiracy between the Federal Reserve Bank of Atlanta and the Federal Banks of other districts, upon the theory that all the Federal Reserve Banks are under control of the Federal Reserve Board. The Federal Reserve Banks of other districts have no power to act upon the petitioners or the intervenors. Their jurisdiction in that respect is confined to their own districts. Being without power to injure the compJaining banks they could not be members of a conspiracy against such banks. The members of the Federal Reserve Board are not charged as conspirators. That other Federal Reserve Banks had taken coercive steps against State banks in their districts to enforce the par clearance policy, as charged on hearsay information in the amended bill, has no bearing on the cause of action relied upon by appellants in this case. Appellants can take nothing from the doctrine of conspiracy. The principle that one must so use his property as not to unnecessarily and maliciously injure his neighbor, even though his act is otherwise lawful, is also invoked. Conceding that the accumulating of checks, and their presentation, when accumulated, with the intent to embarrass and injure the drawee bank, might constitute an actionable wrong and one that might be prevented by injunction; we do not think the amended bill presents any such case. There is no specific charge in the bill of any threat to present the checks in any accumulated or oppressive man- DECEMBER, 1920. ner, on which a court of equity would be justified in acting. Nor does the bill charge the appellee bank with acting from a merely malicious motive if that is material. It does aver that the purpose of the appellee was to compel the appellants to accept the lesser of two evils and to remit at par for checks drawn upon it. If this charge was borne out by the exhibits, which it is not, it would not constitute legal duress, on which a legal complaint could be predicated. The exhibits show that the adoption of a system of universal par clearance was advocated in good faith by the appellee bank as a proper banking policy, and as well by Congress and the Federal Reserve Board. The adoption of appropriate means by the appellee bank to accomplish this end can not with any propriety be attributed to malice on its part against appellants and other banks in like condition. Nor does the adoption of the method of presenting checks over the counters of the drawee bank imply an attempt to coerce them into becoming member or depositing banks. The Federal Reserve Bank was interested to supply a universal clearance at par for its member and depositing banks. It could accomplish this only by accepting from its member and depositing banks all checks tendered it by them upon whatever banks drawn. If drawn upon a nonmember and nondepositing bank, which refused to remit at par, it was disabled under the statute from handling such checks through the method of transmission of the checks and remittance of the proceeds through the mails. It could only collect such checks by presentation in person to the drawee bank. It is therefore reasonable to suppose that its declared purpose of making such presentations was in furtherance of its policy of furnishing complete clearing facilities to its member banks, and was not for the purpose of injuring or destroying the drawee banks, or of coercing them into becoming member or depositing banks with it. It constituted an essential step without which universal par clearance was not possible of accomplishment. We conclude that the district court had jurisdiction and that its decree dismissing the bill for want of equity was without error and it is therefore affirmed. DECEMBER, 1307 FEDERAL RESERVE BULLETIN. 1920. RETAIL TRADE. In the following tables is given a summary of the results obtained during the past few months in the 12 Federal Reserve districts on the regular retail trade index form from representative department stores. In districts Nos. 1, 5, 9, 11, and 12 the data were received in (and averages computed from) actual amounts (dollars). In districts Nos. 2, 3, 4, 6, 7, 8, and 10 the material was received in the form of percentages, the averages for the cities and districts computed from such percentages being weighted according to volume of business done during the calendar year 1919. For the month of October the tables are based on reports from 24 stores in district No. 1,17 in district No. 2, 38 in district No. 3, 16 in district No. 4, 24 in district No. 5, 9 in district No. 6, 6 in district No. 7, 6 in district No. 8, 10 in district No. 9, 12 in district No. 10, 17 in district No. 11, and 28 in district No. 12. The number of stores reporting varies from month to month, due to the inclusion of new stores in the reporting list. Condition of retail trade in the twelve Federal Reserve districts. [Percentage of increase.] Comparison of net sales with those of corresponding'period p r e v i o u s year. District and city. District No. 1: Boston... Outside Jai 1. 1, 1920, to close of— July I, 1920 to end of— Feb., Mar., Apr., May, June, July, Aug., Sept., Oct., 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. Feb., Mar., Apr., May, J u n e , July, Aug., Sept., Oct., 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. . . . . 15.4 36.1 38.9 29.4 16.8 26.0 19.4 25.5 27.8 28.5 16.3 27.2 11.6 9.1 16.0 14.7 0.1 2.2 24.9 41.6 30.7 36.4 26.1 33.1 24.7 30.5 25.3 30.0 16.3 27.2 24.1 18.1 15.9 16.9 9.7 11.1 18.3 37.5 18.5 20.7 28.0 19.9 10.9 15.4 .6 32.5 31.6 27.5 25.8 26.2 19.9 15.1 15.2 10.1 District No. 2: N.Y. City and Brooklyn. 29.9 Outside 66.6 50.4 15.0 22.4 26.4 32.3 22.4 26.9 10.9 26.4 13.2 16.9 1.7 15.4 39.8 59.3 38.1 35.0 33.6 35.3 30.1 32.7 31.7 22.4 26.9 13.0 27.1 3.6 23.4 5.2 19.6 64.8 15.8 41.1 22.8 35.4 28.4 24.4 15.9 3.6 57.0 34.9 33.7 33.8 24.4 17.5 10.2 10.0 37.5 45.5 23.1 27.4 65.2 12.4 18.4 .9 23.4 33.3 50.7 31.3 11.0 31.0 49.7 34.3 31.5 21.4 24.3 59.6 23.8 29.9 15.7 11.6 41.2 30.9 32.1 9.3 28.1 49.6 31.0 34.6 11.4 29.3 58.7 23.8 29.9 15.7 11.6 41.2 11.8 12.9 17.3 23.9 13.6 19.7 32.6 16.5 19.8 24.9 5.6 21.2 12.6 11.6 24.9 27.3 21.1 19.6 29.6 18.0 4.3 10.9 15.2 24.6 7.5 12.6 28.6 11.8 .3 7.8 12.4 20.5 33.6 8.8 22.0 43.5 17.0 '24*6" 19.6 22.6 25.7 20.9 27.6 33.2 20.8 11.6 8.8 14.1 9.9 25.9 25.6 51.6 26.9 27.4 22.6 22.4 23.6 11.5 58.4 35.4 31.0 65.1 19.2 19.8 10.5 43.6 28.5 14.9 33.9 4.3 10.9 7.1 38.2 40.9 17.1 34.4 6.3 48.8 26.4 39.0 23.6 15.2 32.1 U.I 62.8 18.3 35.1 48.9 29.1 19.3 21.0 18.6 10.4 11.5 16.9 15.3 22.0 20.1 3.1 9.9 .2 18.0 i*4.*5* U4.6 22.7 12.7 4.6 20.6 11.6 8.9 68.3 58.9 34.8 36.6 23.0 30.1 18.1 61.2 39.7 32.3 60.9 21.8 26.8 15.1 56.1 36.6 27.9 47.5 16.2 23.1 12.8 52.2 37.6 25.6 39.4 13.9 29.1 16.4 49.8 35.3 23.3 38.3 13.4 35.7 14.7 14.1 "i4.*2" "ii.'i" **"5."2 25.9 25.2 20.9 21.6 35.1 42.4 37.9 33.9 21.0 19.6 17.3 15.4 16.9 14.7 21.3 20.1 13.3 16.1 .2 14.4 14*2" 1 7.3 22.7 16.8 9.4 14.0 20.6 16.1 31.1 37.8 13.8 31.2 27.8 21.2 46.5 41.0 36.9 34.7 33.2 21.2 District District District No. 3 District No 4 District No 5 District No. 6 District No 7 District No 8 District No. 9 District No. 10 District No 11 District No. 12: Los Angeles... San Francisco... Oakland Sacramento Seattle Spokane Salt Lake City District 17.6 28.6 14.2 51.7 21.7 14.5 1 Decrease. 6.2 15.8 20.3 26.2 20.8 36.0 38.2 12.4 5.3 12.1 25.1 29.9 8.3 "50.Y 57.4 10.5 12.9 11.9 *26."9" 16.0 8.2 17.9 21.4 19.6 25.9 14.1 16.9 35.5 16.8 19.8 16.8 1308 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. Condition of retail trade in the twelve Federal Reserve districts—Continued, f Percentage of increase.] District No. 1: Boston Outside District No. 3 District No. 4 District No. 5. District No. 6. District No. 7 District No. 8 District No. 9 District No. 10.... DistrictNo.il.... District No. 12: Los Angeles.. San Francisco Oakland Sacrament o... Seattle Spokane District 1.2 Percentage of average stocks at end of each month to average monthly sales for same period. Feb. 1,1920, to end of— District and city. Feb., 1920. District No. 1: Boston Outside... District June, 1920. July, 1920. Feb., Mar., Apr., May, June, July, 1920. 1920. 1920. 1920. 1920. 1920. 384.7 403.1 392.4 372.3 392.8 415.7 383.4 402.0 399.4 18.8 18.6 15.8 15.5 15.4 10.0 18.5 7.5 13.7 14.2 11.4 14.7 7.5 10.8 19.6 18.7 15.7 12.7 12.3 12.0 14.0 13.1 9.1 22.9 18.8 20.3 21.8 16.8 17.7 15.7 18.9 16.8 14.3 14.7 12.0 9.2 6.6 19.0 18.2 14.8 17.2 17.4 15.9 13.6 8.1 500.3 437.2 27.9 468.8 466.8 18.6 512.9 489.0 20.4 24.8 19.4 16.9 20.9 31.4 23.5 17.6 34.8 I 13.2 12.1 9.9 20.1 20.6 31.2 31.9 19.3 16.2 9.7 17.0 19.5 19.8 18.9 16.1 17.4 19.3 10.1 13.3 8.4 11.0 15.7 9.2 iie 96 18.0 2O.'6" 25.3 13*7 15.6 18.6 14.2 17.0 14.8 15.6 23.2 17.2 9.1 9.7 12.7 10.0 ~5.9 7.6 7.1 6.9 5.1 6.1 12.4 3.1 4.1 39.0 | 29.7 28.2 27.7 ! 23.9 26.0 22.8 25.9 15.5 21.1 12.0 10.8 9.3 13.6 403.9 '337.'6* 534.7 427.9 410.7 371.0 29.7 432.6 377.0 396.8 332.5 ! 305.8 328.3 432.7 189.4 | 31.8 272.1 i 285.4 109.0 107.9 353.7 384.1 334."6" 425.5 481.3 522.5 454.2 508.8 539.9 512.8 573. 625.1 598.3 531.3 423.3 524.6 470.2 532.7 579.4 652.6 675.5 418.3 468.3 390.7 480.4 477.5 494.9 492.3 ! 469.8 581.6 610.7 585.2 { 589.5 533.4 6656 5426 527.9 539.7 755.9 605.8 528.8 605.4 515.3 456.0 508.0 516.0 536.5 1920. 19.6 19.7 379.9 390.0 489.3 613.7 479.4 349.5 485.8 506.3 492.1 441.3 369.9 440.1 496.7 573.9 466.9 380.0 347.0 382.6 357.5 399.8 471.2 386.3 369.1 439.0 362.8 362.3 403.6 412.7 456.8 423.8 422.2 I 421.5 407.0 505.9 560.7 298.6 Aug., Sept. Oct., Aug., Sept., Oct., 1920. 1920. 1920. 509.5 389.8 348.4 339.2 419.2 447.1 412.7 388.4 320.5 464.7 442.5 431.7 436.4 472.1 485.9 482.6 385.5 389.9 405.2 366.5 358.0 425.1 455.1 433.5 415.6 District District Apr., May, 1920. 1920. July 1,1920, to end of— 382.2 402.5 District No. 2: New York City and Brooklyn 405.6 Outside *... District No. 3 District No. 4 District No. 5 District No. 6 District No. 7 District No. 8 District No. 9 District No. 10 DistrictNo.il District No. 12: Los Angeles San Francisco. Oakland Sacramento Seattle Spokane Salt Lake City . Mar., 1920. Percentage of outstanding orders at end of month to total purchases during previous calendar year. 489.6 340.4 523.9 486.0 511.5 337.6 343.3 454.0 462.5 511.9 732.5 37.1 33.9 31.9 31.0 13.9 i95 5.4 387.4 568.'6' 502.5 579.0 22. 6 40.6 176 34.7 17.2 ! 14.2 ! 31.1 504.0 467.3 31.7 27.2 21.6 23.2 1 Decrease. ie.Y i63 i22 23.1 14.2 25.1 29.9 18.7 22.3 6.4 9.5 9.8 DECEMBER, 1309 FEDERAL RESERVE BULLETIN. 1920. FOREIGN TRADE INDEX. Total exports, after a slight increase during There is presented below a series of indexes designed to reflect movements in foreign trade September, showed a large increase during of the United States, with fluctuations due to October. This increase was noted in every price changes eliminated. The commodities class of exports, being practically the same in chosen for these indexes are those for which each case. Total imports on the other hand prices are compiled by the Federal Reserve showed a further large decrease. Although Board in the preparation of its international the imports of consumers' goods showed a price index. The list includes 25 of the most slight increase, the imports of both raw maimportant imports, the value of which in 1913 terials and producers' goods showed a very formed 47.7 per cent of the total import values, large decrease, more than offsetting the inand 29 of the most important exports, the crease of consumer's goods. value of which in 1913 formed 56.3 per cent of the total export values. The list of the commodities is given in the July BULLETIN. 1 . Value of exports and imports of selected commodities at 1913 prices. [In thousands of dollars; i. e., 000 omitted.] [Monthly average values, 1913=100.] Exports. Imports. Raw materials Producers' Consumers' Producers' Raw materials Grand total Grand total Consumers' (12 commodi- goods (10 com- goods (7 com- exports (29 com- (10 commodi- goods (12 com- goods (3 com- imports (25 comties). modities). ties). modities). modities). modities). modities). modities). 1913. January February... March April May June July August September.. October.... November.. December.. Value. Index Index Index num- Value. num- Value. n u m ber. ber. ber. Value. Index Index Index Index num- Value. num- Value. num- Value. number. ber. ber. ber. 100,027 71,074 61,681 71,446 68,856 46,963 51,325 74,869 103,614 137,772 126,836 113,326 116.8 83.0 72.0 83.0 80.4 54.8 59.9 87.4 120.9 160.9 148.1 132.3 142,504 114,130 102,215 114,282 110,440 86,817 90,120 115,786 146,426 184,992 168,069 156,468 111.6 89.4 80.1 89.5 86.5 68.0 70.6 90.7 114.7 144.9 131.6 122.5 Year.. 1,027,789 1919. January February... March April May June July August September.. October November.. December.. 84,066 58,488 57,659 65,112 67,595 98,335 71,917 81,250 70,285 70,240 99,589 89,585 Year.. 914,121 1920. January February... March April May June July August September.. October 93,141 70,130 90,805 68,048 63,650 55,200 66,924 67,225 70,699 101,669 11,762 12,266 11,836 14,128 11,661 11,612 11,109 11,547 10,622 12,608 9,987 10,053 101.4 105.8 102.1 121.8 100.6 100.1 95.8 99.5 91.6 108.7 86.1 86.7 30,715 30,790 28,698 28,708 29,923 28,242 27,686 29,370 32,190 34,612 31,246 33,089 100.9 101.2 94.3 94.3 98.3 92.8 91.0 96.5 105.8 113.8 102.7 108.7 61,347 55,332 55,555 52,271 50,089 40,822 40,298 42,470 52,659 44,407 48,107 60,904 121.9 40,107 110.0 41,060 110.4 45,753 103.9 42,346 99.5 38,409 81.1 38,606 80.1 35,990 84.4 37,385 104.6 41,184 88.2 22,721 95.6 28,788 121.0 31,929 108.3 110.9 123.6 114.4 103.7 104.3 97.2 101.0 111.2 61.4 77.8 86.2 100.0 604,261 100.0 444,278 100.0 158,021 159,258 124.7 44,552 126, 424 99.0 47,774 135,405 106.1 54,947 165,107 129.3 63,385 142,298 111.4 81,274 223,041 174.7 86,256 141,620 110.9 86,443 150,018 117.5 85,571 132,986 104.1 123,524 133,067 104.2 99,127 161,802 126.7 98,690 146,356 114.6 79,965 88.5 53,071 94.9 66,708 109.2 82,546 125.9 88,017 161.4 89,890 171.4 61,886 171.7 77,401 169.9 42,132 245.3 70,033 196.9 74,730 196.1 79,198 158.9 71,886 143.3 180.2 223.0 237.7 242.8 167.2 209.1 113.8 189.2 201.9 213.9 194.2 14,219 14,335 13,378 10,896 7,718 8,382 9,698 11,078 15, 883 15,929 15,059 21,446 Value. Index number. 115,673 110,727 114,686 105,513 96,216 87,810 85,986 90,933 109,726 83,057 91,954 114,279 115.1 110.1 114.1 104.9 95.7 87.3 85.4 90.4 109.2 82.6 91.5 113.7 100.0 1,206,560 100.0 112,057 128,712 162,716 170,271 196,025 166,654 193,336 148,656 218,797 194,243 199,142 173,372 111.4 128.0 161.8 169.3 195.0 165.7 192.3 147. 8 217.6 193.2 198.1 172.4 108.0 108.9 101.6 82.7 58.6 63.7 73.6 84.1 120.6 121.0 114.4 162.9 100.0 139,191 100.0 365,269 100.0 1,532,249 98.2 68.3 67.3 76.0 78.9 114.8 84.0 94.9 82.1 82.0 116.3 104.6 18,444 14,598 16,161 19,356 15,972 28,618 17,150 19,574 19,359 16,844 15,740 13,208 159.0 56,748 125.9 53,338 139.3 61,585 166.9 80,639 137.7 58,731 247.1 96,088 147.9 52,553 168.8 49,194 166.9 43,342 145.2 45,983 135.7 46,473 113.9 43,563 186.4 175.2 202.3 264.9 192.9 315.1 172.7 161.6 142.4 151.1 152.7 143.1 88.9 215,024 154.5 688,237 188.4 1,817,382 118.6 951,508 157.5 857,498 193.0 254,975 161.4 2,063,981 171.1 144,194 125,973 164,512 136,800 143,653 115,976 129,387 111,527 113,181 157,177 112.9 103,796 98.7 87,086 128.9 97,039 107.1 87,588 112.5 64,177 91.1 75,225 101.3 60,942 87.3 61,321 88.6 51,388 123.1 44,866 206.2 173.0 192.8 174.0 127.5 149.5 121.0 121.8 102.1 89.1 90,655 107,162 125,496 97,187 84,134 95,699 93,910 94,866 61,163 48,683 244.9 24,064 289.5 19,964 339.0 25,999 262.5 29,076 227.2 14,887 258.5 21,463 253.7 24,562 256.2 22,624 165.2 17,226 131.5 17,613 182.7 151.6 197.4 220.8 113.1 163.0 186.5 171.8 130.8 133.8 218,515 214,212 248,534 213,851 163,138 192,387 179,414 178,811 129,777 111,162 217.3 213.1 247.2 212.7 162.3 191.3 178.4 177.8 129.1 110.6 108.7 81.9 106.0 79.4 74.3 64.5 78.1 78.5 82.5 118.7 15,647 14,198 17,279 17,063 17,546 14,663 19,138 15,708 13,883 17,649 134.9 122. 4 149.0 147.1 151.3 126.4 165.0 135.4 119.7 152.2 35,406 41, 645 56,428 51,689 62,457 46,113 43,325 28,594 28,599 37,859 116.3 136.8 185.4 169.8 205.2 151.5 142.4 94.0 94.0 124.4 i An additional list of 11 commodities of imports is given in October BULLETIN. 14,434 108.1 14,230 109.6 25,223 191.6 18,869 143.3 24,861 188.8 18,512 140.6 29,492 224.0 20,953 159.1 25,240 191.7 20,386 154.8 21,254 161.4 21,521 163.4 1310 FEDEKAL KESERVE BULLETIN. DECEMBER, 1920. WHOLESALE PRICES ABROAD.1 Index numbers of wholesale prices (all commodities). [1913=100.] United France; United States; United Bulletin Italy; Federal Bureau of Kingdom; Prof. dela Reserve Labor Statist Statistique Bachi(40 Board (90 Statistics (45 com- Ge"ne"rale commodiquota- (328 quota- modities). (45 comties). tions). tions). modities). 100 100 101 124 174 197 215 100 101 126 159 206 226 242 100 101 137 187 262 339 356 100 95 133 202 299 409 364 212 219 226 223 230 238 264 271 276 382 405 423 242 242 248 263 264 258 250 234 226 208 248 249 253 265 272 269 262 250 242 225 288 306 307 313 305 300 487 522 555 584 550 493 496 501 526 503 100 1913. 1914.. 1915.. 1916.. 1917.. 1918.. 1919.. 1919. October November December 1920. January February March April May June July August September October 292 282 Australia; Calcutta, Sweden; Japan; Common- Canada; India; Svensk Bank of wealth DepartDepartHandels- Japan for Bureau ment of ment of tidning Tokyo (56 Census and Labor (272 Statistics (47 quota- commodi- Statistics quota(75 comtions). ties). (92 comtions). modities). modities). 2 100 116 145 185 244 339 330 100 96 97 117 149 197 240 3 100 141 132 5 155 170 180 100 101 110 135 177 206 217 388 436 455 307 308 317 271 280 288 200 199 197 222 227 238 504 556 619 679 659 615 613 632 660 665 319 342 354 354 361 366 363 365 362 346 301 313 321 300 272 248 239 235 230 226 203 206 209 217 225 233 234 236 230 248 254 258 261 263 258 256 244 241 234 * 100 218 209 198 200 210 206 209 209 208 206 1 The index numbers printed in this article are constructed by the various foreign statistical offices according to methods described in the BULLETIN for January, 1920. In all cases except that of the United States the original basis upon which the index numbers have been computed has been shifted to the 1913 base. The monthly and yearly index numbers are therefore only approximate. The latest figures are received by cable and are subject to correction. 2 July 1, 1913, to June 30, 1914=100. 3 July, 1914=100. 45 End of July, 1914=100. Last six months of 1917. Business depression appears to have become more general in foreign countries during October than was the case in earlier months. In spite of the instability of prices and exchange rates, production and trade in most countries increased during the first part of 1920. This was strikingly the case with the leading European countries. In recent months, however, a change has set in, October reports emphasizing the curtailment of production and the decrease in trade. Prices began to decline pretty generally in the spring, but in many cases the rate of decline was gradual as compared with the previous rate of increase, and it was not until the last six weeks that the movement became very widespread. Food and fuel prices are still at approximately the old high levels in most European countries. In Italy prices as a whole are still rising and the same is the case with Germany, although both countries have been through a period of falling prices during the year. In England, Canada, Japan, and the United States prices have been falling uninterruptedly for several months, while in Sweden and Australia the shift downward is of recent date. In France prices have fluctuated during the year but were declining in October. ENGLAND. As in the United States, prices in England declined more rapidly in October than at any time since the downward movement began. Practically all lines have now been affected by the readjustment except meats and coal. Where prices have been fixed by the Government, as is the case with wheat, they have not as yet been reduced. Although the Statist index shows an advance for vegetable foods as a whole, the reports from the American consul in London show downward movement of all of the leading cereals with the exception in wheat. Sugar and coffee likewise declined during the month of October, but butter and meats increased. As was the case in practically all markets of the world, cotton, wool, and hides continued to decline and uncertainty was prevalent in the silk markets. Authoritative quotations on semifinished and finished textiles are exceedingly hard to' obtain, but all reports seem to show a wide variation in quotations, depending apparently on the eagerness of individual sellers to liquidate. In the Egyptian cotton industry output has been curtailed for some time, and early in December the section of the trade using American cotton announced DECEMBER, FEDERAL RESERVE BULLETIN. 1920. a weekly reduction in working hours from 48 to 24. Throughout the coal strike it is reported that the latter group worked at not more than one-half normal capacity. The falling off in prices of all kinds of wool has been exceedingly great, but as the level was originally several times higher than before the war, prices on Australian wools are still well above the 1913 level. The South American staple is nearer the prewar level. After a period of great activity, the iron and steel industries have also begun to curtail production. Price cutting had not become prevalent until very recently, but within the past few weeks leading quotations of pig iron and semifinished steel products have shown considerable reductions. Copper, zinc, tin, and lead have also been affected during the recent period of falling prices. Gasoline, rubber and certain important chemicals are also slightly lower than during recent months. It may be concluded, therefore, that except in industries which are more or less controlled, the price decline has been general. The extent of price cutting, however, seems to have been less great than in the United States. The index number of wholesale prices published by the Statist, follows: Statist index number of wholesale prices. [1913=100.] Date. 100 110 155 193 252 248 100 100 125 152 192 210 100 107 130 161 213 238 100 105 137 169 218 229 100 90 109 140 152 167 100 97 111 152 228 265 100 105 131 163 212 243 100 98 119 153 198 225 October... November December. 260 266 270 226 226 228 322 332 336 253 258 260 222 226 234 305 325 334 284 292 296 270 280 286 January... February. March April i May June ' July l August ; September.! October 274 297 345 346 351 359 343 317 319 334 230 237 237 265 244 244 278 295 291 290 356 415 393 392 473 496 425 404 334 257 265 286 300 315 318 325 325 319 308 302 256 267 263 263 273 269 276 281 283 276 343 362 360 354 308 308 298 298 286 261 312 329 318 321 311 282 277 278 279 302 318 312 311 298 285 233 285 232 1913 1914 1915 1916 1917 1918 1919: 1920: i Vege- Ani- Sugar, Food- Min- Tex- Sun- Mate| table mal coffee, stuffs. erals. tiles. dries, rials. I foods. foods. tea. The coal strike which ended on November 8 had a serious effect not only on the production of coal but also on that of practically all industrial commodities. Coal production for October is the lowest of any month during the year. Pig-iron production and that of steel ingots and castings were likewise at the low levels of the year, showing very striking reductions from recent months. Although more than half of the miners voted against the agreement arrived at be- 1311 tween their delegates and the Government for the adjustment of the strike, it was decided that it should be called off and the terms of the agreement put into effect. This involves an increase of 2s. a shift to all persons of 18 years or over, Is. to persons of 16 or 17, and 9d. to persons under 16, this schedule to be effective at once and to last until the first of January. These increases will continue in effect during January only if the money returns from the export trade justify it. As was stated in the November BULLETIN, a national committee is to be created whose duty it will be to prepare a scheme for submission to the Government not later than March, 1921, for regulation of wages in the industry. The terms of settlement which have now reached this country in their official form show the situation to be somewhat different from that reported by the press at earlier dates. Although coal production is one factor taken into consideration in adjusting the wage schedule, another important factor is that of the quantity exported. Portions of the agreement are published below: The basis on which the advance shall be adjusted is as follows: If the weekly average of the proceeds of export coal during the test period are maintained at the weekly average of the proceeds of export coal during the September quarter the advance shall be Is., 6d., and 4M., respectively. If (after deduction of the cost of extra output) they exceed the September figure, an additional 6d., 3d., and 2^d., respectively, will be paid for every complete £288,000 of the excess. (c) For this purpose the amount of export coal in each period shall be assumed to be the excess of the tonnage produced over the rate of 219,000,000 tons annually; the proceeds shall be calculated by multiplying that excess tonnage by the average f. o. b. price as shown in the trade and navigation accounts for the quarter ended 30th September, 1920; and the cost of extra output shall be taken as 15s. per ton for each ton produced in excess of the rate of output for the quarter ended 30th September, 1920. (d) As part of the settlement hereby concluded, the Government undertake to make an order under section (3) of the mining industry act which shall provide for the variation of the one-tenth share of the excess profits of the industry payable to the owners under the coal mines (emergency) act by the deduction therefrom or addition thereto of one quarter of said tenth part for each 6d. by which the men's advance is reduced or increased. In other words, if from export coal during future months the returns continue to be on the same scale as those of the September quarter, the miners will receive Is. more than under the old schedule. For every increase in weekly export returns of £288,000 above the average for the September quarter, the individual miner will receive 6d. per shift above the Is. already mentioned. For the purpose of arriving at an estimate of coal exported, the surplus over the coal consumed at home in the earlv months of 1920 was used as a basis. 1312 DECEMBER, 1920. FEDERAL RESERVE BULLETIN. Deposit and note accounts. 1920 Knd o f January... February.. March April May June July August September October... Bank 1 notes. 000's. £84,258 92,426 99,371 101,284 103,614 106,658 106,869 106,294 108,791 108,839 Currency notes and Deposits, certificates public and outstandother. ing. 000's. £329,554 324,994 335,372 337,377 348,316 357,356 361,911 356,012 353,795 355,872 i Less notes in currency note reserve. 000's. £155,272 190,147 137,170 140,381 117,784 191,715 133,796 115,955 127,167 136,977 2 Government floating debt. Coin and bullion.2 Treasury bills. 000's. 000's. £128,434 £1,111,000 1,070,000 138,946 1,107,000 140,672 1,048,000 141,018 1,062,000 140,955 1,050,000 146,382 1,058,000 151,734 1,067,000 151,529 1,139,000 151,615 1,085,000 151,699 Discount rates. Temporary Total float- 3 months' 6 months' advances. ing debt. bank bills. trade bills. 000's. 000's. £208,000 £1,319,000 188,000 1,258,000 205,000 1,312,000 249,000 1,297,000 221,000 1,283,000 244,000 1,294,000 204,000 1,262,000 183,000 1,250,000 143,000 1,282,000 241,000 1,326,000 Per cent. Held by the Bank of England and by the Treasury as note reserve. The situation of the Bank of England during respect of goods supplied or services rendered October was not strikingly different from that to it (the Soviet Government) or to the former of previous months, although deposits through- Government of Russia.77 The revised draft out the month were at a higher point than at has not yet been published, but because of the any time since the first two weeks in August. importance of the question article 8 of the The ratio of reserves to liabilities stood at original draft is published below. approximately 10 per cent for the month except (8) The Russian Soviet Government hereby declares for the first week, when it was under 9 per cent. that it recognizes its liability to pay compensation to Bank note circulation was at about the same British subjects in respect of goods supplied or services level as during September, and currency note rendered to it or to the former Government of Russia, or to circulation about 2 million pounds greater than Russian citizens, for which payment has not been made to the Russian revolution. The detailed mode of at the end of September. Holdings of coin and owing discharging this liability, together with all other questions bullion have been almost stationary since July. with regard to the liability of each of the parties toward A considerable change is to be noted, the other party or its nationals, shall be regulated by the referred to in the preamble. owever, in the situation with regard to the treaty The British Government makes a corresponding declafloating debt, which stood at the end of ration. October at the highest point of the year. This is accounted for by the repayment of the A renewed interest in the provisions for the Anglo-French loan. No striking change has advancing of export credits by the British been made in policy with regard to the floating Board of Trade has resulted from the decline debt, but a new bond issue was placed on in foreign and domestic trade during recent November 1 and the old series withdrawn. months. According to the original law passed During the 6 months since the first series was in the early autumn of 1919, 26,000,000 pounds placed, only 11 million pounds have been sterling were made available for advances by subscribed. The new bond issue is being the Board of Trade to exporters of commodities placed on exactly the same terms as the first to foreign countries. The loans were intended one, the chancellor of the exchequer stating to finance shipments to foreign governments that if these bonds were made more attractive, as well as to individuals in foreign countries. housing loans could not be successfully placer! Provision was made for advancing up to 80 per In regard to foreign trade, developments of cent of the cost of the goods. At the end of the month have been of considerable interest. September, 1920, only a very small portion of Harmony has not been obtained in the matter this sum had been used by exporters, because, of the Russian trade agreement. On Novem- until recently, manufacturers were engaged to ber 20 the State Department gave out the text capacity on transactions which could be of the proposed agreement, but this appears to financed by ordinary banking methods. Achave been merely a tentative draft, not the cording to the new regulations, the Board of final agreement. Much controversy has been Trade will make advances up to 100 per cent raised in England over the original draft because in approved cases, but has a recourse of 20 it does not provide for the repayment by the per cent from the exporter. In other words, Soviet Government of state, municipal, and the risk of the exporter is as great as under the other money debts of the former Russian old provision, but the amount of the advance Government but merely for payment "in has been increased by 20 per cent. Advances DECEMBER^ 1313 FEDERAL RESERVE BULLETIN. 1920. are limited to two years, with a possibility of renewal, and manufactured articles only come within the provision of the law. Twenty-six million pounds sterling is the limit of advances which may be outstanding at any one time. The following countries constitute the list of nations to whom credits will be extended: Finland, Latvia, Esthonia, Lithuania, Poland, Czechoslovakia, Jugo-Slavia, Rumania, Georgia, Armenia, and Bulgaria. Value of foreign trade. Production (metric tons). Date. Imports. Monthly average, 1913 Exports. Reexports. 000's. £39,061 000'''s. £43, 771 183,498 170,514 I 176,648 167.154 166,816 170,491 163,342 153,255 152,692 149,389 105,880 85,964 103,699 106,252 119,319 116,352 137,452 114,903 117,456 112,295 Coal. 000's. £9,131 Pig iron. Ship tonnage under construcSteel ingots and tion (gross castings. tons). 000's. 24,336 000's. 869 000's. 649 2 22,657 19,435 19,505 17,131 2 22,131 19,048 2 22,926 16,970 18,885 14,044 676 656 710 655 738 726 750 752 741 533 766 811 854 779 848 745 800 709 884 544 i 2,002,699 1920. January February March April May June July August September October 25,464 22,604 27, 031 20,407 20,260 20,124 17,848 , 13,368 f 13,351 16,134 3,394,425 3,578,000 3,731,666 1 Average of four quarterly estimates. Figures following are estimates taken at the end of each quarter. 2 Five weeks in the month. The total value of foreign trade continued to decline, returns for the month of October showing a falling off in total imports and total exports. Reexports were 3 million pounds greater than during the preceding month. Among the leading groups of commodities which are exported, cotton yarns and manufactures show the most striking decline. During the month of July exports in this line of goods were valued at approximately 40 million pounds. During the month of September cotton yarns and manufactures to the amount of 38 million pounds were exported. During October, on the other hand, exports of this item had decreased to 32 million pounds. A somewhat similar decrease is found in the case of woolen yarns and manufactures, which were exported to the value of 14 million pounds in July as compared with 10 million pounds in October. The export of coal was naturally considerably decreased, the July figure being approximately 9 million pounds, the October figure 6 million pounds. There has been a very material decline also in the value of the exports of iron and steel, of coke, and of manufactures of vehicles, including locomotives, ships, and aircraft.1 i Errata.—In the November BULLETIN, it was stated that exports of rubber manufactures in September were valued at 7,800,000 pounds. This was a mistake, the figure applying to the value of exported vehicles during September; the export of rubber manufactures amounted to only 927,000 pounds. Per cent Average of tradepercentunion age in- members crease m unemcost of ployed living,1 (membase, July, 1914. bership 1,636,012 at end of September). 1920. January February March April May Juno July August September October November 125 130 130 132 141 150 152 155 161 164 176 2.9 1.6 1.1 .9 1.1 12 1.4 1.6 2.2 5.3 1 Food, rent, clothing, fuel, light, etc. Figures applying to increase in cost of living are for the beginning of month and those for trade-union unemployment are for end of month. FRANCE. The most striking aspects of the financial and industrial situation in France during October were the increased prices of some important food products, the decline in prices of raw materials, and the increasing credit stringency in France. Various reasons are assigned for the lastnamed phase of the situation. It undoubtedly is due in part to the fact that world prices for some important raw materials have declined and that a great deal of capital is tied up in stocks of finished goods which can not be dis- 1314 DECEMBER, FEDERAL RESERVE BULLETIN. posed of at prices which will cover their original cost. There are other reasons for the stringency in France, however. One of these is set forth in a memorandum recently drawn up by the Chamber of Commerce of Lyons. This document comments on the fact that there has been very little revival in France of the practice of discounting commercial paper, which disappeared there during the war," because deliveries were then made only for cash, and the State, the principal buyer of everything, settled with its contractors in paper without fixed dates." The purchasers who have become accustomed to paying in cash are now actually requiring credit, but are refusing to have their bills discounted at the banks, thus compelling the sellers of goods to try to find the credit they require in other ways. The memorandum protests against this procedure and urges the banking and commercial world to help in stopping it. In speaking of the credit stringency, M. Robineau, the governor of the Bank of France, said recently that while he is opposed to placing credit at the disposal of those who wish to use it for holding merchandise and raising prices, he is quite ready to assist manufacturers and merchants whose operations are "free from the spirit of pure speculation." He pointed out that the discount operations of the bank have increased from 1,100,000,000 francs before the war to 2,300,000,000 francs at present. 1920. It is difficult to tell from the statements of the private banks how much the credits they extend to industry have increased in the last two years, since they report in one item bills discounted and short-term government securities held (bons de la defense nationale). The figures on " debits in current account," although smaller in amount, are more illuminating. They represent the overdrafts, often covered by securities or other collateral, which French banks allow their active business customers. Debits in current account. [In thousands of francs.] Credit Lyonnais Comptoir National d'Escompte de Paris. Society Generate Dec. 31, 1918. Dec. 31, 1919. Aug. 31, 1920. 662,466 201,752 663,971 1,098,769 495,921 986,640 1,425,597 543,254 1,454,463 As the above table shows, there have been marked gains in these "current accounts" since the armistice, although the increase is not altogether due to more active trade, but probably to the rise in prices during the period concerned. The following table consolidates the individual tables, showing the condition of French commercial banks, published in the October issue of the BULLETIN and carries them up to August 31, 1920, the latest date for which such statements are available: Development of the commercial banks of France. [Total for Le Credit Lyonnais, Le Comptoir National d'Escompte de Paris, and Le Socie'te' Ge"ne"rale pour Favoriser le De*veloppement du Commerce et de I'lndustrie en France.] • [In thousands of francs.] Dec. 31— 1913 Cash in vaults and balance at banks Bills discounted and short-time national defense securities Advances on securities, including stock exchange loans Debits in current account Securities, including rentes Forward exchange operations h* Due from banks and bankers 2 Customers' liabilities on acceptances * Financial participations 2> 3 Coupons uncollected * Agencies outside of E u r o p e 2 Real estate Sundry assets l > 2 Total : LIABILITIES. Capital paid in Heser v e Deposits (checking accounts, deposit certificates payable at sight, discount account) Credits in current account Deposits payable at fixed date Acceptance liabilities UncoHected funds i Forward exchange operations h2 Agencies outside of Europe 2 Profit and loss l>« Sundry liabilities Total 1914 1915 1916 1917 1918 1919 Aucr. 31 1920. 470,967 1,208,940 998,746 1,051,926 1,255,503 859,274 1,063,852 1,239,436 3,493,548 1,308,615 1,911,976 2,530,965 3,804,424 4,636,405 8,299,412 8,756,985 1,058,257 1,463,905 63,200 920,172 1,297,598 68,647 94,277 175,076 74,869 42,300 17,575 101,410 119,005 109,881 31,269 72,645 16,440 7,094 104,297 25,904 5,171,502 636,133 1,010,517 86,203 177,638 90,853 54,008 60,628 11,591 3,756 105,316 114,093 5,933,627 632,292 1,190,315 80,826 107,597 89,271 47,195 53,960 19,438 7,729 105,350 123,513 7-, 520,413 587,780 1,528,189 79,356 207,794 92,895 23,408 54,834 39,739 2,912 105,475 154,903 8,372,964 746,254 2,581,330 81,995 226,591 162,841 83,514 54,536 35,351 3,924 107,263 203,849 13,650,712 790,750 3,423,314 79,508 231,621 182,986 • 89,270 54,710 20,117 7,174,389 682,379 1,034,724 92,842 42,480 80,937 49,002 68,447 19,139 3,782 105,288 101,771 5,191,513 106,422 189,542 15,164,661 700,000 328,861 700,000 343,400 700,000 333,937 700,000 267,929 700,000 268,582 700,000 269,268 700,000 295,062 « 732,038 318,780 2,071,097 3,066,837 296,865 493,032 1,355,141 2,212,779 320,140 150,195 1,336,010 2,074,338 304,286 113,997 98,815 42,480 1,659,703 2,441,959 2,299,386 89,464 95,566 177,638 2,192,327 3,576,394 284,950 91,657 82,455 107,597 2,579,301 3,918,388 279,558 53,995 94,440 207,794 4,166,845 7,288,116 302,358 171,817 129,373 226,591 18,371 199,326 7,174,389 14,754 75,093 5,171,502 29,319 158,331 5,191,513 33,423 168,559 5,933,627 37,790 178,661 7,520, 413 42,454 227,766 8,372,964 25,429 345,121 13,650,712 4,785,373 8,035,653 294,228 200,829 158,245 231,621 1,041 10,910 395,943 15,164,661 1 Le Credit Lyonnais. 2 Le Comptoir National d'Escompte de Par*s. * Le Societe* c&ierale pour Favoriser le De>eloppement du Commerce et de I'lndustrie en France. < This increase is due to the fact that the Comptoir National d'Escompte de Paris recently authorized an increase of 50,000,000 francs In its capital, of which 32,038,000 had been paid in on August 31,1920. DECEMBER, 1920. 1315 FEDERAL RESERVE BULLETIN. There is an interesting contrast between the situation of the private banks and that of the Bank of France. Deposits of the latter bank have increased about 300 per cent and note circulation over 500 per cent since 1913, while deposits of the three private banks have increased only 136 per cent, their credits in current account 161 per cent and their cash in vault and balances at banks 161 per cent in the same period. The new loan, proceeds from which are to make up the deficit in the 1920 extraordinary budget, opened October 20. It is reported that subscriptions so far have been very satisfactory, but no official figures are available on the amounts subscribed. Meanwhile the finance commission of the Chamber of Deputies is at work pruning the estimates for the 1921 budget. The tax receipts for October amounted to 1,332,000,000 francs, 212,000,000 francs more than those of the month previous, but 57,000,000 francs less than the budget estimate for October. The deficit in receipts from the tax on total business turnover was only 226,000,000 francs in October, as compared with 407,000,000 francs in September. Receipts from registration and stamp taxes, and from Government monopolies were, on the other hand, much larger than had been expected. The note circulation of the Bank of France reached its peak October 7, when it stood at 39,567,000,000 francs. It declined after that date to 39,084,000,000 francs on October 28 and stood at 38,806,700,000 on November 35. The gold and silver reserves of the bank made slight gains during the month. Frenchfinancialsituation. [In francs.] Bank of France. Situation of the Government. Advances to the Govern- Govern- Public Price of Gold Silver Deposits i Circula- ment for m e n t 3 3 per cent reserves debt tion purposes revenue perpetual (000,000's) (000,000's) of the (000,000's) (000,000's) rente. (000,000's) (000,000's) war 2 (000,000's) 1913, average... 1920, end of— January... February.. March April May June July August September. October... 3,343 629 830 5,665 3,602 3,603 3,606 3,608 3,609 3,610 3,611 3,612 3,531 3,537 255 251 247 244 240 241 248 255 256 264 3,172 3,277 4.039 3,469 3,751 3,653 3,416 3,267 3,307 3,474 37,583 37,889 37,569 37,688 37,915 37,544 37,696 37,905 39,208 39,084 320 25,300 25,800 26,300 25,300 26,050 26,000 25,550 25,800 26,600 26,600 35,000 885 > 206,616 794 859 1,057 857 908 1,109 6 233,729 882 1,120 1,332 86.773 58.75 57.60 58.82 57.40 59.35 57.25 58.90 56.30 54.15 56.20 1 Includes Treasury and individual deposits. 2 Under the laws of Aug. 5 and Dec. 26, 1914, July 10,1915, and Feb. 16,1917. From indirect taxation and Government monopolies. * Not including about 1,978 million francs held abroad, s As of Dec. 31, 1919. e Foreign debt calculated at par. 3 The exchange situation continues to hinder foreign trade transactions. The value of the English pound rose in Paris from 52.31 francs on September 30 to 54.68J on October 28, and by November 30 had reached 57.65 francs. The dollar rose from 15.08 francs to 15.715 in October and stood at 16.495 francs the last day of November. Italian exchange fell at the beginning of October to bl\ francs to the lira, but it recovered by the last of the montli to 59 francs. The mark fell from 24 francs on October 1 to 21 \ francs on October 28. 1316 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. The following table shows the course of rapid. The Chambre Syndicale du Commerce French prices as reported by the Bureau de la a Sucre at Paris quoted No. 3 white sugar for Statistique G6nerale: immediate delivery at 338 francs per 100 kilos on October 5 and at 245 francs November 3. Group index numbers—France. Meanwhile increasing unemployment is re[Bulletin de la Statistique Ge*ne*rale.] ported. A recent cable states that official [1913=100.] statistics on the subject place the number of former workers now unemployed in France Raw Sugar, Ani- Vege- coffee, The greatest depression has ocMin- Tex- Sun- mate- at 125,000. mal table and Foods Date. (20). erals. tiles. dries. rials curred in the metal, textile, and leather infood. foods. (25). cocoa. dustries. The Syndicate of the Metallurgists 100 100 100 100 100 of the Seine reports that of its 160,000 workers 100 100 100 1913 1914 103 103 104 101 normally employed in Paris, 25 per cent are 106 109 99 98 1915 126 126 151 164 132 145 145 131 The Government has 170 164 180 162 167 232 199 206 actually without work. 1916 1917 201 243 215 303 302 291 been attempting to relieve unemployment by 225 271 1918 298 460 387 286 231 281 420 283 1919, end of— transferring men released from industry to 337 554 402 268 295 403 405 October 353 351 271 323 435 reconstruction work in the devastated disNovember... 424 369 620 415 380 432 278 357 454 tricts. December... 375 419 649 1920: January 432 787 452 419 440 465 413 525 The following table was taken from a February... 474 828 484 436 474 444 503 561 March 884 500 516 439 498 460 600 document recently published by the French 548 522 511 429 506 587 498 953 646 April details as to the 480 424 472 480 841 601 459 614 finance ministry, giving May 400 392 434 734 517 540 quantity and value of French foreign trade 482 428 June 370 501 405 432 746 500 548 469 July 524 359 399 432 475 737 515 558 for the first eight months of this year. August September... October 531 533 412 428 544 422 487 472 468 453 715 637 540 527 558 528 There were two trends in French commodity prices during October. Prices for meat, eggs, milk, butter, cheese, margarine, and potatoes rose, while prices for nonferrous metal (excepting lead), iron and steel prices, prices for sugar, raw cotton, raw wool, and crude rubber declined. The reduction of iron and steel prices resulted from the cut in the price of foundry coke announced by the Government the first of October. The slump in other metal prices was due in part to the fear that a serious coal shortage might result from the English strike and in part to conditions in the world metal markets. Lead prices rose steadily from 209 francs per 100 kilos in Paris on October 2 to 225.75 francs on October 30. Cotton prices in Havre fell from 492 francs for 50 kilos on October 2 to 404 francs October 16, and closed the month at 430 francs. Stocks of cotton at Havre on October 30 amounted to 117,348 bales, as compared with 140,686 bales a year ago at this time. Wool prices at Havre fell steadily during the month. Buenos Aires fine wool, which was quoted at 11.50 francs per kilo October 2, had fallen to 9.80 francs October 30. At Lyons inactivity was general throughout the month. Silk production has been somewhat reduced, and the price of Cevennes raw silk fell from 275 francs per kilo the last of September to a nominal price of 245 francs October 22. In sympathy with world prices the decline in sugar prices during the month has been very Exports from France, January through August. In metric tons. 1919 1920 19131 19192 19202 3,439 10,047 2,393 1,844 5,107 5,736 32,112 9,251 5,602 17,716 274,676 244,847 147,824 158,520 147,441 807,805 273,352 111,718 370,400 97,451 ,381,944 831,287 412,359 1,031,911 398,460 3,676 28,246 212,421 3,560 12,159 95,083 869 60,449 857 5,198 54,916 1,791 78,036 144,208 130,591 11,631 34,093 31,652 78,523 129,440 248,608 168,572 225,203 91,542 627,800 333,501 268,835 356,901 337,814 251,269 35,799 961,562 55,394 21,085 507,063 1913 Broad silks 4,261 35,992 Cotton cloth 13,687 Woolen cloth Clothes of all kinds.. 4,973 Yarns 35,527 Raw wool and wool waste 55,600 10,012 Leather 1,049 Furs Leather manufactures 3,072 125,575 Wines Perfumes and soaps. 34,278 Pig iron, iron and steel 665,310 Machines and ma54,807 chinery Automobiles 17,560 Tools and metal manufactures 104,343 Manufactures of rubber and guttapercha 4,733 Chemical products... 655,060 Paper and paper 43,275 manufactures In thousands of francs. 31,795 1,531 51,872 80,800 157,442 308,999 30,522 154,279 33,010 708,971 19,472 81,733 93,482 85,828 307,105 5,756 11,527 68,333 143,799 104,037 594,682 132,802 122,913 284,038 742,636 35,465 106,581 134,501 235,337 19,903 i Valued at 1913 rates. 2 Valued at 1919 rates. These figures show in striking fashion the actual increase in the quantities of goods exported in the first eight months in 1920 as compared with 1919. In the cases of broad silks, clothes of all kinds, leather, leather manufactures, wines, pig iron, iron and steel, automobiles, and manufactures of rubber and guttapercha exports have been larger than in the same period of 1913. The increase in pig iron and iron and steel is particularly striking, and is due in part to the accession of Alsace-Lorraine. The following table gives total values for French foreign trade of the year: DECEMBER, 1317 FEDERAL RESERVE BULLETIN. 1920. Foreign trade of France} [In thousands of francs.] Impdrts. Food. 1913 average 38 .. 1919 average .. 1920: January February.., March April May June 4 Julys 8 August ... September. October 7... Raw materials. Exports. Manufactured articles. Total. Food. Raw materials. Manufactured articles. Parcel post. Total. 151,465 719,122 412,144 , 101,811 138,169 660,610 701,778 2,481,543 80,805 154,841 161,401 301,420 440,314 47,182 43,577 573,351 726,097 538,365 653,630 871,857 665,799 547,825 558,951 478,408 651,299 772,007 ., 398,592 813,216 ., 193,980 644,911 , 302,867 726,856 2,002,183 2,641,916 3,122,851 2,887,607 2,385,696 2,588,674 ^84,561 150,060 114,223 125;678 103,355 216,849 187,626 347,480 349,521 353,344 348,361 421,735 415,007 767,423 834,031 844.901 726,654 1,100,931 35,204 58,866 39,884 52,987 31,658 69,862 722,398 1,323,829 1,337,659 1,376,910 1,210,028 1,809,377 905,613 724,894 684,442 2,800,453 2,627,876 2,595,445 210,888 229,892 262,808 440,482 446,131 297,464 1,631,883 1,363,469 1,597,808 116,255 112,081 2,399,508 2,151,573 2,332,552 723,749 608,822 667,709 985,410 ,336,987 ,478,987 171,091 294,160 243,294 1 Not including gold, silver, or the reexport trade. *3 Calculated in 1913 value units. Calculated in 1918 value units. * January-June, 1920, figures are calculated in 1918 value units. French foreign trade figures are originally recorded in quantity units only, and the value of the trade is calculated by applying official value units to the quantities imported and exported. Normally the monthly state ments of trade appear computed at the rates of the year previous, and only at the end of the year is the trade evaluated at the prices prevailing during that year. Because of the disturbed price conditions in France this year, however, it was not until July that the 1919 price units were decided upon and applied. 5 Monthly French foreign trade figures are published only in cumulative form, and as the value rates used were changed in July it is impossible to give separate figures for that month, e Calculated in 1919 value units. 7 October figures subject to revision. [In thousands of marks.] GERMANY. The Reichstag began its fall session on October 27, when it was addressed by Herr Wirth, the finance minister, who spoke at length on Government waste and extravagance and Germany's debts. On that date the funded debt stood at 91 billion marks, the floating debt at 157 billion marks, and by spring the finance minister prophesied that the railroad and other debts would add 40 billion marks more, making a total of 308 billions. The following day the Reichstag started work on the budget for the fiscal year ending March, 1921. Almost every department of the Government reports a large deficit for last year. Only one, the economic ministry, shows a surplus. Government departments have been-forbidden to undertake work entailing new expenditures without the permission of the finance minister. The possibility of a forced loan for the purpose of improving the fiscal situation is still discussed. German tax receipts from April 1, 1920 (the beginning of the fiscal year), through June, 1920, were reported on November 1 to have been as follows: [In thousands of marks.] Receipts, AprilJune, 1920. General Post and telegraph Railroad 3 535 903 695,717 3, 687,515 7,929,135 254,194 204,245 382,666 891,565 285,266 2,017,936 Sales tax (law of 1918) Extraordinary war levy (1919). Customs (Aufgeld) Coal tax Tobacco tax The Reichsbank statements for October show that notes in circulation and Darlehnskassenscheine reached a high point for the year on October 16 and have declined since that date. Deposits were larger on September 30 than they had been since June 30. Since that date they have fluctuated, but have not risen to the height of the September 30 figure. June 6,1919.. 1920. May 15... May 3 1 . . . June 15... Increase June 30... over the July 15... same period July 3 1 . . . in 1919. Aug. 1 4 . . Aug. 3 1 . . 1 969 292 Sept. 7 . . . 372,483 Sept. 17.. 2,604,642 Sept. 23.. Sept. 30.. 4,946,417 Oct. 7 . . . . Oct. 15... Oct. 23... Oct. 30... The most important of the general taxes are as follows: Receipts, AprilJune, 1920. Reichsbank. [In millions of marks.] Reserves. Gold. ReichsNote cir- Deposits. und Dar- culation. lehns- kassenscheine. 1,302 1,092 1,092 1,092 1,092 1,092 1,092 1,092 1,092 1,092 1,092 1,092 1,092 1,092 1,092 1,092 1,092 15,546 15,907 16,189 17,252 17,210 17,874 17,964 18,686 18,650 18,849 18,980 19,861 19,949 20,435 20,244 21,341 28,218 9,151 48,948 50,017 50,809 53,975 53,847 55,969 56,462 58,401 58,752 58,928 59,264 61,735 62,078 62,129 62,066 63,596 16,451 17,024 15,313 23,414 14,851 17,282 15,573 15,772 12,074 17,207 14,217 20,054 13,172 16,415 12,347 17,945 1318 FEDERAL RESERVE BULLETIN. From the quotations available in this country it appears that the general trend of prices in Germany during October was upward. Exceptions to this movement are prices for raw cotton and iron and steel. The price of cotton fluctuated, rising from 59 marks per kilo on September 20, falling again to 45 marks on October 14, and rising to 49 marks by October 30. On November 1 iron and steel prices were increased by the Eisenwirtschaftsbund 15-18 per cent. Prices for important grades have, according to the Frankfurter Zeitung, been as follows since 1914: Ruhr coal production. Tons. [In marks per ton.] Before Janu- Dec. 1, Feb. 1, Apr. 1, June Aug. 1, the 1919. 1920. 1920. 1, 1920. 1920. war. 1919. 265 300 320 335 1,430 1,500 1,715 1,745 2,255 2,325 2,620 2,650 1920. per 100 kilos the first of the month, however, and the maximum price for potatoes was also raised. ' In general, reports seem to show that there was very little activity in German business in October. The iron and steel works had orders from Russia and some other foreign countries, but few domestic orders. Shoe factories were well supplied wdth orders, but in the textile and other industries unemployment was reported. Coal production in the Ruhr reached its maximum for this year in September. Monthly figures are as follows: German iron and steel prices. 83-50 Ingots 95 Billets Formed steel. 112 98-100 Bar iron Medium 110 plates DECEMBER, 2,650 3,125 3,620 3,650 2,435 2,725 3,320 3,200 2,140 2,365 2,740 2,840 1,770 1,995 2,340 2,440 January February March April May June July August September 6, 660,000 6,880,000 6,400,000 6,510,000 7,090,000 7,450,000 7,560,000 7, 290,000 7, 590,000 German industry reports lack of coal in consequence of the increased deliveries to the allies since the Spa agreement. According to Prices for most nonferrous metals increased an official estimate, August deliveries to domesin Germany during October, although they tic industries were less than those for July by were still far below the high levels of the the following amounts: early part of this year. This recent advance Tons. 1 is contrary to the general trend of metal prices To electric light works 43, 600 107, 400 in other countries. Since most of these metals To gas works 318,100 are imported into Germany, the change was To state railroads other railroads 2, 600 probably caused by the unfavorable rise in ex- To To other industries 312, 300 change rates during the month. The following For household purposes 2 100, 000 table shows metal prices in 1920: 420 2,545 4,470 5,535 4,775 4,060 3,360 Total German metal prices in 1920. Aluminum Antimony Lead Copper (refined) Nickel Zinc Tin Quicksilver Feb. June 17. 22. 6,300 2,400 1,750 3,550 8,200 1,450 14,600 280 2,400 850 425 1,125 3,800 525 4,200 70 July 23. Aug. 20. Sept. 23. 2,200 725 475 1,200 3,600 640 4,450 90 2,800 900 620 1,500 4,000 750 5,150 83 2,700 900 680 2,000 3,800 890 6,150 103 Oct. 21, 3,250 875 745 2,050 4,650 910 6,150 112 Hide prices also increased during the month, but a report dated November 1 stated that the rise seemed to have been arrested. Shoe prices, which began to decline in May, rose sharply in October, although they are still below the prices of April. Cotton yarn, which was quoted at 77^ marks on September 11, rose to 92^ on October 23, and the price of cotton cloth rose slightly from August and September levels. Prices for silks also increased throughout the month. Among the prices controlled by the Government few changes were made in October. The price of raw sugar was increased to 210 marks 884, 000 1 Coke computed on the basis on tons of coal. 2 Estimated. The following figures on German bankruptcies indicate that the withdrawal of Government support is beginning to be felt by weaker concerns, although the latest figure (that for the third quarter of 1920), is only about onefifth of the prewar quarterly figures. Bankruptcies in Germany, by quarters. First quarter Second quarter Third quarter Fourth quarter Entire year.. First to third quarter 1911 1912 1913 2,411 2,188 2,015 2,128 2,341 2,312 2,141 2,424 2,721 2,558 2,222 2,222 1914 1915 2,428 1,594 2,062 1,232 1,616 990 1,633 778 8,742 9,218 9,725 7,739 4, 6,614 6,794 7,501 6,106 3,816 1918 241 218 145 203 1919 285 263 209 258 1920 207 240 422 807 1,015 604 757 Exchange rates were increasingly unfavorable to Germany during October. The English pound was worth 214.25 marks the last of September and 249.75 marks the last of October; the dollar rose from 68.180 marks to 72,555 in the same period. DECEMBER, 1319 FEDERAL RESERVE BULLETIN. 1920. Berlin exchange onl— Holland. Marks to the Florin. Franc. Crown. 1.70 0.80 1.25 36.465 35.960 26.470 21.178 11.988 13.586 14 136 15.734 18.931 21.878 2 6.990 7.168 5.095 3.646 2.872 3.307 3.422 3.636 4.336 4.825 17.480 16.733 13.760 11.188 6.044 6.269 6.634 7.043 8.616 9.815 Par End of— January. February Brussels. Christiania. Stockholm. 1.125 London. New York. Paris. Switzerland. Lira. Pounds sterling. Dollar. Franc. Franc. 20.40 4.20 0.80 0.80 97.900 71.900 58.650 34.950 38.450 41.450 49.900 61.180 72.555 2 7.193 6.908 4.720 3.446 2.897 3.137 3.207 4.465 4.121 4.525 17.48 15.685 12.585 10.388 i 6.244 * 6.968 7.073 I 8.242 1.9.915 11.239 0.80 1920. Tyfarch April . Mav June July August September October 1 Last Wednesday in month quotations. The new import tariff law, promulgated on July 27, became effective on August 1 of this year. The purposes of the law are chiefly to facilitate Japanese trade in eastern markets, to protect Japanese manufacturers, and to develop infant industries which sprang up during the war. The minister of finance, in introducing the bill in the Diet, stated that "the principal features of the law are: (1) To furnish a good measure of protection to dye and drug industries; these industries were first seriously undertaken by Japanese during the course of the great war, are still in their infancy, and require reasonable protection. (2) To facilitate the importation of certain raw materials which are essential to her fundamental industries; consequently a number of articles have been added to the free list. (3) To prevent dumping by foreign traders, and for this purpose a series of surtaxes have been arranged for. (4) In order to compensate for increased rates on liquors of domestic production, the duties on imported liquors are raised." A summary of the amendments follows: Import tariff. (Yen, $0,498; kin, 1.32277 pounds avoirdupois; liter, 1.05668 U. S. liquid quarts.] Rate of duty (in yens). Articles. New. Sake (per 100 liters) Chinese liquors, fermented (per 100 liters) Beer, ale, porter, and stout (per 100 liters) Wines in bottle (per 100 liters) Wines in other receptacles (per 100 liters): A. Containing less than 14 per cent of alcohol— a. Containing less than 1 gram of grape sugar in 100 cubic cm. at 15° C b Others B Others Champagne and other sparkling wines (100 liters).. 2 18.980 18.130 15.400 12.388 7.193 8.492 8.841 9.990 12.188 13.886 2 5.995 5.245 3.446 2.498 1.948 2.313 2.248 2.298 2.572 2.647 2 324.750 331.150 278.700 223.250 134.850 151.850 156.300 177.300 214.250 249.750 2 Frankfort exchange. Import tariff—Continued. JAPAN. Crown. Italy. Old. 24.20 24.20 16.40 47.80 17.00 17.00 12.00 40.00 22.80 27.80 37.80 108.00 15.00 20.00 30.00 100.00 Rate of duty (in yens). Articles. New. Alcoholic beverage not otherwise provided for: 1. Containing less than 7 percent alcohol at 15° C 2. Others A. In bottles B. In other receptacles Silkworm egg, cards Oil seeds (except panlownia seeds) Salt Furs of sheep and goats (per 100 kin): Tanned .Other Tortoise shells (per 100 kin) Olive oi], in can or barrel ( per 100 kin) Animal fats (per 100 kin)' Beef tallow Vegetable tallow or wax obtained from the seeds of the " Stillingia sebifera" (per 100 kin) Licorice (per 100 kin) Ipecacuanha root (per 100 kin) Cassia and cinnamrn bark (per 100 kin) Cinchona bark (per 100 kin) Ryutan or gentian root (per 100 kin) Rhubarb (per 100 kin) Apricot soed and bitter almond (per 100 kin) Nux vomica (per 100 kin) Ergot of nye (per 100 kin) Cloves (ner 100 kin) Licorice extract Bromine Salicylic and acetyl salicylic acid (per 100 kin) Salicylate of sodio-theobromine (per 100 kin) Hydfobromic acid, potassium bromide, and other bromides not otherwise provided for (per 100 kin) Alcohol (r>er liter) Denatured alcohol (r»er liter) Ant.ifebrin (per 100 kin) Chemical products derived from the fractional distillation of coal tar, except carbolic acid, salicylic acid, bakelite, and medical drugs, and essences other than benzoldehyde, nitrobenzol, and nitratoluol (per 100 kin) Alcoholic medical preparations (per liter) Artificiolindigo Coal-tar dyes not otherwise provided for (per 100 kin)....: Pitch and asphalt (per 100 kin) Gypsum, uncalcined (per 100 kin) Old. 27.80 20.00 124.00 73.90 110.00 60.00 Free. Free. Free. 9.40 Free. Free. Free. Free. Free. Free. Free. Free. Free. Free. Free. Free. Free. Free. Free. 5 () ( ?6 () (6) 6 (1.00 ) <•) 0) 0) 9.40 9.40 (3) 1.70 .80 6.00 2.00 82.00 (*> 6.65 2.85 2.60 (l) (1) 14.30 6.10 0) 0) 11.60 14.10 10.00 .73 .73 11.00 1.00 T 2.75 .73 Free. Free. 7.00 .55 .06 1 Not specified in free list before. 2 40 per cent ad valorem. . s4 The present rates vary from 1.30 to 1.34 yen per 100 kin. 20 per cent ad valorem. & 10 per cent ad valorem. 6 35 per cent ad valorem. 7 Applicable only to aniline salt or hydrochlorate of aniline. s Dry, 40 yen per 100 kin. Liquid or paste, 20 per cent ad valorem. 1320 FEDERAL RESERVE BULLETIN. Import tariff—-Continued. Rate of duty (in yens). Articles. New. Minerals and manufactures thereof, not otherwise provided for: (1) Unworked (2) Other—Powdered or calcined Ores, matte, bottom, and mineral dust Platinum, iridiiun, osmium, palladium, radium, indium, and ruthenium Copper, waste or old, fit only for remanufacturing (per 100 kin) Lead, waste or old, fit only for remanufacturing (per 100 kin) Tin, waste or old, fit only for remanufacturing... Brass and bronze, waste or old, fit only for remanufacturing (per 100 kin) Metal or woodworking machinery, not otherwise provided for, including rolling machines, drawing machines, nail-making machines, molding machines, flanging machines, bending machines, riveting machines, etc., each weighing not more than (per 100 kin): (1) 25 kilos (2) 50 kilos (3) 100 kilos (4) 250 kilos • (5) 500 kilos (6) 1,000 kilos • (7) 2,500 kilos (8) 5,000 kilos (9) 50,000 kilos (10) Other Wood: (1) Cut, sawed, or split, simply— f-1. Pine, fir, and cedar—Cedar less than 20 by 7 cm. by 7 mm f-2. Other— (a) Not exceeding 65 mm. in thickness (per cubic meter) (6) Other (per cubic meter) (2) Other—Match splint Wheat bran (per cubic meter) Rice bran (per cubic meter) Old. Free. Free. Free. Free. Free. (10) Free. 1.30 Free, Free. Free. (9) 50.00 30.00 ,19.10 17.10 15.10 13.10 9.10 8.00 5.10 4.70 37.50 22.50 14.30 12.80 11.30 9.80 6.80 6.00 3.80 3.50 Free. Free. Free. Free. Free. Free. .30 2.25 Free. 3.10 1.80 .30 .06 s 10 per cent ad valorem. s 5 per cent ad valorem. i° Various rates according to degree of manufacture, ii 25 per cent ad valorem. Wholesale prices in Tokyo were 2.2 per cent lower in October than in September and 30 per cent lower than in March, when prices reached the highest point in the history of the country. The index stands at approximately the same point as in June, 1919, namely, about three times the prewar level. Ever since last March, when the depression set in, both exports and imports have been decreasing in value; this has been especially the case with imports. Total exports during the 10 months ending October 31 amounted to 1,756,000,000 yen, and total imports during the same period to 2,123,000,000 yen, leaving an adverse balance of 367,000,000 yen. Exports during October were 134,000,000 yen and imports during the same month 108,000,000 yen. The change in prices in practically all countries can account in only a small measure for the decrease in the total value of trade. According to the official review of the 28 important items on Japan's export lists, 19 registered gains during the nine months of the year ended by September 30, as compared DECEMBER,, 1920. with the same period of 1919, including cotton tissues, silk fabrics, cotton yarns, refined sugar, porcelain, toys, coal, braids, timber, glass and glassware, cotton knit goods, waste silk, Portland cement, tea, buttons, matches, hats and caps, paper, and rice. The nine important items showing a decrease were raw silk, beans and peas, copper, starch, woolen cloth, spelter, leather manufactures, beer, and iron and steel materials and shapes, raw silk registering the greatest decrease, namely, 40,000,000 yen. Of the 28 important commodities on the import list, 21 registered gains. These are almost all raw materials, fertilizers, and machinery, and were purchased before the crisis in anticipation of postwar prosperity. They include raw cotton, wool, oil cakes, iron and steel shapes, beans and peas, Chilean saltpeter, sugar, woolen cloth, skins and hides, machinery, paper pulp, coal-tar dyes, leathers, hemp and flax, cotton tissues, rails, coal, iron nails, iron pipes and tubes, soda ash and caustic soda, and petroleum. The importation of these items has been heavily reduced in recent months. ITALY. Recent estimates of the receipts and expenditures of the Italian Government for the fiscal year beginning last July show a deficit of approximately 14,000,000,000 lire. Ordinary expenditures are now estimated at 15,468,000,000 lire, extraordinary expenditures, consisting of amortization of public debt, pensions, compensation for damages caused by the war, food supply, etc., are estimated at 11,222,000,000 lire, making a total expenditure of 26,690,000,000 lire. Total receipts, on the other hand, are now estimated at 12,946,000,000, of which 11,446,000,000 will be obtained from ordinary sources and 1,500,000,000 from sales of war materials, etc. The combined ordinary and extraordinary receipts would thus appear insufficient to cover even the ordinary expenditures, and the total deficit amounts to 13,744,000,000 lire. In order to reduce the deficit, the commission on finance recommends economy in administration, better enforcement of taxes on silk fabrics, gloves, and wine, the enactment of new taxes on consumption, and, above all, an increase in the price of bread, so that the subsidy may be decreased. During the discussion of the budget in the Senate at the session of September 24, a group of senators made a motion to invite the Government to solve the problem of the bread subsidy with a view to reducing the deficit. Premier Giolitti, however, refused to commit 1321 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. himself to any measure that might bring about an increase in the price of bread and reserved for the Government the right to propose other sources of revenue as a means of improving the fisbal situation; he mentioned, in particular, a possible increase of the tax on wines. The importance of the bread subsidy in national finances for the year 1920-21, and the general situation with regard to the supply of grain, has been discussed in various statements given out by the ministry of agriculture and the commissioner on food supply during August and September. Italy's annual requirement of wheat is estimated at about 70 million quintals. Last August this year's wheat crop was provisionally estimated by the ministry of agriculture at 40,065,000 quintals, that of 1919 having been about 46,204;000 quintals, and the average annual crop for the period 1909-1919, 47,663,000 quintals. Later information shows that the estimate of the ministry of agriculture was rather too high. There will thus need to be imported, in 1920-21, 30 million quintals of wheat. At 225 lire the quintal (a little under the price of last August), this will amount to 6,750,000,000 lire. The requisition of 13 million quintals within the country, at an average price of 110 lire, will cost an additional 1,430,000,000 lire, the total thus amounting to 8,180,000,000 lire. On the other hand, the proceeds of the sale of wheat by the Government are estimated at about 2,580,000,000 lire. The net charge upon the Government will thus be about 5,600,000,000 lire. Should the prices which prevailed at the end of August be maintained, the charge would be increased by an additional 750,000,000 lire. Since August there has been a material decline in prices of foreign cereals, but at the same time Italian currency has depreciated abroad. The value of the actual estimates is somewhat vitiated, therefore, although the importance of the bread subsidy in Italian finances is not changed. Contrary to the situation in most other countries, with the important exception of Germany, prices in Italy are still advancing. The index number for all commodities registered 665 per cent of the prewar level in October of this year. The high level of prices is largely accounted for by the prices of metals and fuel. Textile prices are also at a very high level. Food prices remain largely controlled, and although they have advanced during the past year the increase has not been at the same rate as that of materials for manufacture. Coincident with this rise in prices the lira has depreciated excessively in foreign markets. During the first week of November lire were worth 3.66J-3.47 cents in the New York market as compared with a par of 19.3 cents. Group index numbers—Italy. Prof. Bachi. Date. 1913. 1914 1915 1916 1917 1918 Cereals and meats. Other foodstuffs. Textiles. Minerals and metals. Date. 100 102 132 156 215 315 100 84 93 135 171 229 113 184 326 475 100 100 207 380 596 750 100 96 133 197 266 391 326 328 338 366 371 373 499 633 658 459 568 584 341 351 405 1919. October. November December. AUSTRALIA. The following comment regarding the formation of a note-issue department in the Commonwealth Bank of Australia is taken from a correspondent's letter from Melbourne, dated September 3, to the London Economist: The Commonwealth Government has introduced a bill one of the main features of which is to compel the banks (with the exception of the Commonwealth Bank of Australia) to hold up 2L portion of their deposits in Australian notes, the administration of which is to be transferred from the Treasury to a note-issue department of the Commonwealth Bank of Australia. The note-issue de- [1913=100.] 1920. January February.. March April May....... June July August September. October... Cereals and meats. 363 365 381 395 441 445 434 445 459 446 Other foodstuffs. 396 399 418 494 499 511 508 510 520 502 Textiles. 777 840 962 1,064 840 742 759 794 837 810 Minerals and metals. 671 857 996 1,076 1,088 917 903 957 1,040 1,092 Other goods. 418 443 489 535 525 534 542 540 541 572 partment is to be managed by a board of directors composed of the governor of the bank and three other directors appointed by the Government. Every bank other than the Commonwealth Bank is to be compelled to hold "in the form of Australian notes an amount not less than 20 per cent of the deposits which it holds, repayable at call of less than six months' notice, and 10 per cent of deposits it holds repayable at six months' or longer notice." As the word "deposits" is not denned, it would appear to include deposits in London or elsewhere outside Australia as well as those within Australia. The board of the Commonwealth Bank is required to hold not less than one-fourth of the amount of notes outstanding in gold coin and bullion, and is empowered to invest the remainder or any part thereof (a) on deposit with any other bank, or (b) insecurities of the United Kingdom, or of the 1322 FEDERAL RESERVE BULLETIN. Commonwealth or of a State, or (c) in the ordinary business of the bank. The power conferred upon the Commonwealth Bank by clause '(c) is a new feature. Power is reserved to the Governor-General of the Commonwealth to transfer the control of and responsibility for the whole or part of the Australian note issue from the board of the Commonwealth Bank to the treasurer, whenever in his (the Governor-General's) opinion an emergency has arisen which renders it desirable in the public interest so to do, and to retransfer the note issue to the board of the Commonwealth Bank when the emergency has ceased. Apart from the board to be established under this bill, which will have to do only with the note issue, the Commonwealth Bank of Australia has no board of directors, but is managed solely by the governor of the bank with the assistance of the deputy governor and the staff. BELGIUM. A summary of the 1920 budget for Belgium, which finally became law on August 16, 1920, shows a deficit of 5,589,000,000 francs for the year. Ordinary expenditures amount to 2,788,000,000 francs, extraordinary normal to 453,000,000 francs, and extraordinary war expenditures to 6,115,000,000. Receipts of all sorts total 3,767,000,000 francs. EECEIPTS. Ordinary: Direct taxes Customs and excises Registration Port and canal tolls Railroads Posts, telegraphs, and telephones Ostend-Dover service Antwerp-Tete de Flandre Francs. 421,530,000 315,300,500 289,500,000 3,120,000 600,000,000 73,592,120 4,000,000 400,000 DECEMBER, Ordinary—Continued. Internal transportation Capital and revenue Reimbursements Exceptional: Tax on war profits War booty Sale of army stocks Received from Germany for occupation expenses Passports Extraordinary: Normal War sale of objects recovered in Germany Approvisation Office des Regions Devastees 1920. Francs. 29,660,000 60,803,385 21,207,924 300,000,000 80,000,000 20,000,000 95,000,000 230,000 1,750,000 20,000,000 1,359,000,000 71,500,000 Miscellaneous 752,000 3,767,345,929 EXPENDITURES. Ordinary: Public debt Salaries and civil list Ministerial budgets 529,699,779 8,583,633 2,249,589,259 2,787,872,671 Extraordinary normal: Ministries War expenditures : Public debt Ministerial budgets 453,082,525 597,015,000 5,518,122,481 Total expenditures Total receipts Deficit to be covered 9,356,092,677 3,767,345,929 5,588,746,748 In a law of January 27, 1920, the Government was authorized to borrow 5,000,000,000 francs, of which one-half was obtained in February and March through the floating of a premium loan, and it was reported in September that the rest will be raised by the placirg of 2,500,000,000 francs in the form of 5 per cent treasury notes payable in six months. Group index numbers—United States, Bureau of Labor Statistics. [1913=100.] Date. 1913 1914 1915 1916 1917 1918 October November December January.... February March April May. June July August September October Farm products. Food, etc. Cloths and clothing. Fuel and lighting. Metals and metal products. Lumber and building material. House Chemicals and drugs. furnishing goods. Miscellaneous. 100 103 106 119 189 219 100 102 105 124 178 191 100 98 99 123 181 240 100 96 92 114 .175 163 100 88 94 142 208 181 100 98 94 100 124 152 100 101 109 157 198 221 115 145 195 100 98 99 117 153 192 230 240 244 211 219 234 313 325 335 181 179 181 161 164 169 231 236 253 174 176 179 264 299 303 220 220 220 246 237 239 246 244 243 236 222 210 182 253 244 246 270 287 279 268 235 222 204 350 356 355 353 347 335 317 300 278 257 184 187 192 213 235 246 252 267 284 282 177 189 192 195 193 190 191 193 192 184 268 300 325 341 341 337 333 328 318 313 189 197 205 212 215 218 217 216 222 216 324 329 329 331 339 362 362 363 371 371 227 227 230 238 246 247 243 240 239 229 100 1919. 1920. 1323 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. Group index numbers—Australian Commonwealth—Bureau of Census and Statistics. [July, 1914=100.] Metals and coal. Date. July,1914 1915 1916 1917 1918 September October November December January February March April May June July August September Textiles, leather, etc. Agricultural products. Dairy products. Groceries and tobacco. Meat. Building materials. Chemicals. 100 117 154 213 220 100 93 131 207 232 100 202 113 110 135 100 127 124 116 121 100 110 127 131 138 100 150 155 155 147 100 116 136 194 245 100 149 172 243 315 182 186 184 186 225 243 254 259 200 236 238 224 138 141 142 142 149 152 151 156 152 154 132 132 259 271 278 281 263 272 267 266 189 192 205 205 214 214 211 209 211 273 283 281 277 265 260 252 251 222 227 226 226 234 252 261 244 238 231 143 149 162 169 177 187 188 189 209 156 161 160 192 197 195 193 193 196 147 149 126 160 170 208 261 284 273 282 287 268 272 280 280 297 297 283 282 276 1919. 1920. 307 307 307 312 295 Group index numbers—Canadian Department of Labor.1 [1913=100.] Date. Grains Animals and and fodder. meats. Dairy products. Fruits and vegetables. Other foods. Textiles. Hides, leather, etc. Metals. Imple- Building Fuel and ments. materials, lumber. lighting. Drugs and chemicals. 1913 1914 1915 1916 1917 1918 100 114 136 142 206 231 100 107 104 121 161 197 100 100 105 119 149 168 100 99 93 130 233 214 100 104 121 136 180 213 100 102 114 148 201 273 100 105 110 143 168 169 100 96 128 167 217 229 100 101 106 128 174 213 100 100 97 100 118 147 100 94 92 113 163 188 100 106 160 222 236 250 1919. October November.. December.. 232 240 251 180 176 182 204 221 230 178 240 240 228 230 232 290 298 306 252 252 231 165 171 181 225 232 232 188 194 224 201 201 209 198 181 1920, January February... March April May June July August September.. October 269 275 280 291 301 302 292 271 254 229 195 195 198 200 207 206 211 204 202 194 228 216 206 196 189 183 194 198 202 207 265 290 295 316 358 338 295 142 190 177 245 251 254 264 275 274 283 277 261 249 316 321 322 366 323 314 305 300 296 292 237 245 222 239 215 186 183 173 169 156 191 199 210 214 213 207 209 209 207 203 235 231 237 237 237 238 242 243 259 259 232 243 268 268 294 295 282 285 273 265 212 215 215 245 257 279 294 190 189 194 201 203 206 218 218 217 211 i Unimportant groups omitted. 211 1324 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. Group index numbers—Calcutta, India, Department of Statistics. [End of July, 1914=100.] Date. Build- ManuJute Hides Cotton Raw ing manufacmanuand tured Metals. skins. fac- cotton. factures. rials. articles. tures. Other textiles. Raw Oil Tea. Sugar. Pulses. Cereals. Other Oils. jute. seeds. foods. End of July, 1914. August, 1918 100 100 100 317 100 83 100 100 240 100 328 100 240 100 100 100 100 100 95 100 179 100 100 1119 1920. January February March April May June July August September... October 118 118 127 114 128 131 139 142 158 154 225 217 218 201 215 233 235 235 237 282 226 215 222 219 248 244 249 257 245 245 253 233 211 209 160 116 100 99 105 96 356 364 351 357 365 364 364 360 347 343 214 181 164 150 170 142 147 151 163 163 136 153 158 159 161 164 164 168 168 164 164 159 155 135 116 123 119 119 115 115 132 125 123 118 119 120 83 89 91 105 104 200 190 166 163 169 171 169 167 179 184 96 92 87 90 90 73 74 72 65 64 377 363 321 377 511 482 503 477 456 392 207 191 160 159 150 149 159 160 170 169 167 158 151 156 157 156 151 154 154 155 204 199 192 185 183 180 188 185 186 178 185 I 179 158 135 144 132 139 154 142 1 Includes pulses. Group index numbers—Sweden, Svensh Handelstidning. [1913=100.] Date. Vegeta table food. Animal food. Raw materials for agriculture. Coal. Metals. s. Building material. Paper pulp. Hides and leather. Textiles. Oils. 100 136 151 152 181 221 100 101 140 182 205 419 100 114 161 180 198 304 100 123 177 266 551 856 100 109 166 272 405 398 100 104 118 165 215 275 100 116 233 267 300 100 118 158 229 206 195 100 103 116 166 247 100 111 120 149 212 October November... December... 230 230 241 360 361 362 323 317 319 893 840 840 213 225 237 281 280 294 292 316 343 223 228 258 308 328 350 170 204 204 1920. January February March April May June July August September... October 273 270 265 269 250 252 271 273 258 328 305 304 284 283 273 277 307 312 306 317 319 318 320 320 311 312 310 308 309 864 936 960 248 259 291 283 324 318 293 286 273 256 295 371 367 367 367 381 388 388 388 390 388 476 682 767 788 778 767 756 753 740 258 269 268 263 252 212 202 191 180 166 353 380 380 368 374 368 336 328 310 250 204 226 275 275 275 303 303 322 340 340 1913-14. 19141... 1915.... 1916.... 1917.... 1918 1919. . 1,008 1,069 1,252 1,252 1,117 1,085 1.026 i Average for six months ending Dec. 31, 1914. 1325 FEDERAL, RESERVE BULLETIN. DECEMBER, 1920. WHOLESALE PRICES IN THE UNITED During October all the commodities included in the index declined in price except Canadian STATES, lumber and Formosa tea which were unThe Federal Reserve Board's all-commodi- changed, and Mexican sisal which advanced ties index of wholesale prices registered 208 during the month. in October, 1920, as compared with 212 in In the case of goods exported from the United October, 1919, and 264 in 7May, 1920. The States, a 31 per cent decrease since last April Bureau of Labor Statistics index number is indicated by the Board's index. Domestic registered 225 in October, 1920, as compared goods as a whole declined only 20 per cent with 222 in October, 1919, and 272 in May, 1920. during the same period, a fact which seems to Although the two indexes differ as to the present show that the price situation has been largely level of wholesale prices, in both cases they controlled by the foreign-trade situation. Exshow prices in the autumn of 1920 at about ports and imports have depreciated considerthe same level as in the autumn of 1919. In ably more than commodities which do not other words prices are back again at about the enter into foreign trade. During the past same place as they were before the very ma- month nearly all important commodities which terial increases of last winter and spring had the United States exported decreased in price. taken place. Both indexes show also that Exceptions to this w^ere coal, kerosene, gasoalthough prices have receded 15 or 20 per cent line, and lard. from their peak they are still considerably The rate of decline has been approximately higher than at any time during the war. the same in raw materials, producers7 goods, Prices of goods which are imported into the and consumers' goods. United States have declined more than any In making up the index for October quotaother group in the Board's index. A 42 per tions were obtained for all commodities incent drop occurred in this group between cluded in the index with the exception of one May and October. This was due to the very grade of raw wool, namely, Sidney and Geelong rapid decline in such commodities as sugar, Merinos, 64's at Boston. No wool of this coffee, rubber, hides, silk, wool, and tin; some grade was received in that market during the of these commodities have decreased in price month. 50 per cent or more during the past six months. Index numbers of wholesale prices in United States—Federal Reserve Board. [Average price for 1913=100.1 Date. Average for the year 1913. 1919. January February March April May June July August September October November December... 1920. January February March April May June July August September October ... : Goods pro- Imported. Exported. Consumed. R a w mate- Producers' Consumers' rials. goods. goods. duced. All. 100 100 100 100 100 100 100 100 197 191 193 198 204 204 214 221 215 215 222 231 168 168 163 165 172 180 176 174 170 174 179 203 200 192 194 194 211 214 224 219 212 226 242 245 195 190 191 196 201 202 211 218 212 211 217 225 195 190 196 201 209 208 217 217 211 213 220 229 192 191 185 181 184 192 200 206 203 207 213 223 196 188 188 197 202 202 211 224 216 214 219 225 195 189 191 196 202 203 211 218 211 212 219 226 244 244 250 265 266 260 253 238 231 213 212 216 218 242 246 226 208 182 164 142 255 252 256 264 262 256 248 229 211 181 240 242 247 263 264 257 249 234 227 211 245 242 246 263 263 258 249 237 233 211 236 247 263 274 274 265 251235 225 209 240 240 241 257 261 255 250 229 218 203 242 242 248 263 264 258 250 234 226 208 1326 FEDERAL. RESERVE BULLETIN. mOEXflUMBERS OFWHOLESALE PRICES 1NTHEUNITED STATES- J9I9J9Z0 INDEXNUMBERSOFIVIIOLESAIXPRICES IN THE UIUTED STATES-1919,1320. JJll Commodities (Joods imjwrtecL. — (joodsexjtorted. •— AVERAGE PRICE LEVEL OF 1913 DECEMBER, 1920. • . i •• &CLWMaterials. — -—>— - Producers'Goods. • •••————» Cbnsvuners'Goods. AVERAGE PRICE LEVEL OF 1913 = 100. 300 •300 300 230 280 280 260 260 260 240 240 240 220 220 22O 200 200 200 180 (80 180 160 160 160 160 140 140 MO 120 120 120 100 100 100 300 =100, 140 Index numbers of wholesale prices in the United States for principal classes of commodities. [Bureau of Labor Statistics.] [Average price for 1913=100.] Raw materials. Year and month. Farm products. July, 1914... October, 1914 October, 1915.. . . October, 1916 October, 1917 October, 1918 October 1919 January, 1920 February, 1920 March 1920 April, 1920 May 1920 June, 1920 July, 1920 August, 1920 September, 1920 October, 1920 . . . . . . . 102 100 105 152 228 240 254 291 278 288 304 259 232 191 Animal products. 106 105 105 122 190 211 212 213 206 200 196 179 186 184 181 186 172 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 for certain commodities of a basic character, covering the period January, Forest products. 97 96 92 96 129 143 234 273 315 348 367 367 363 359 351 344 339 Mineral products. 91 90 98 137 153 184 184 190 194 197 224 234 245 250 258 270 265 Total raw materials. 99 98 101 129 179 199 220 239 240 247 260 260 261 258 251 248 230 All commodities Producers' Consumers' (Bureau of goods. Labor Stagoods. tistics index number). 93 95 102 149 184 204 211 245 246 246 263 271 262 251 238 224 209 103 103 102 135 178 214 228 259 256 263 280 285 279 272 250 240 224 100 99 102 134 181 205 222 248 248 253 265 272 268 263 25Q 242 225 1920, to October, 1920, compared with like figures for October of previous years. The actual average monthly prices shown in the table have been abstracted from the records of the United States Bureau of Labor Statistics. DECEMBER, 132>7 FEDERAL RESERVE BULLETIN. 1920. Average monthly wholesale prices of commodities. [Average price for 1913=100.] Corn No. 3, Chicago. W h e a t , No. 1, Cotton, middling, n o r t h e r n spring, New Orleans. Minneapolis. W h e a t , No. 2, red winter, Chicago. Cattle, steers, good to choice, Chicago. Hides, packers, heavy native steers, Chicago. Year and month. Average price per bushel. July, 1914 October 1914 October, 1915 October 1916 October 1917 October, 1918 October 1919 $0.7044 .7266 .6335 .9463 1.9620 1.3270 1.3888 1.4750 1.4125 1.5515 1.6913 1.9825 1.8390 1.5388 1.5310 1.2938 .8778 F e b r u a r y 1920 March, 1920 April 1920 May, 1920 June, 1920 July 1920 August, 1920 September 1920 October, 1920 Rela- Average tive price per price. pound. Relative price. Average price per bushel. Relative price. Average price per bushel. Relative price. Average price per 100 pounds. SO.1331 .0692 .1203 .1723 .2659 .3150 .3538 .4035 .3944 .4060 .4144 .4038 .4030 .3950 .3380 .2706 .2088 105 54 95 136 209 248 279 318 311 320 326 318 317 311 266 213 164 SO. 8971 1.1020 1.0190 1.7569 2.1700 2.2155 2.6250 2.9313 2.6875 2.7550 3.0063 3.0750 2.9000 2.8313 2.5500 2.4903 2.1063 103 126 117 201 248 254 301 336 308 315 344 352 332 324 292 285 241 $0 8210 1.1086 1.1325 1.6809 2.1700 2.2345 2.2394 2.6338 2.4900 2.5000 2.7725 2.9750 2.8950 2.8050 2.4735 2.4919 2.2047 83 112 115 170 220 227 227 267 252 253 281 302 294 284 251 253 224 S9.2188 9.4313 8. 8750 9.9050 14.6750 17.8563 17.5938 15.9375 14.9688 14.4000 13.9063 12.6000 15.0313 15.3813 15.3500 15.2500 14.6875 114 118 103 154 319 216 226 240 229 252 275 322 299 250 249 210 143 Hogs, light, Chicago. Wool, Ohio, i-f grades, scoured. Hemlock, New York. Yellow pine, flooring, New York.* Relative price. 108 111 104 116 173 210 207 187 176 169 163 148 177 181 180 179 173 Average price per pound. $0 1938 .2125 .2650 . 2663 .3375 .3000 .4820 .4000 .4025 3640 .3613 . 3538 .3410 . 2944 .2850 .2840 .2550 Relative price. 105 116 144 145 184 163 262 218 219 198 196 192 185 160 155 154 139 Coal, anthracite, stove, New York, tidewater. Coal, bituminous r u n of mine, Cincinnati. Year and month. Average price per July, 1914 October 1914 October, 1915 October 1916 October, 1917 . October 1918 October 1919 J a n u a r y , 1920 F e b r u a r y 1920 March, 1920 April 1920 May, 1920 J u n e 1920 July, 1920 August 1920 September, 1920 October, 1920 .. .. .... .. .. Rela- Average Relative price per tive 100 pounds. price. pound. price. Average price per M feet. Relative price. Average price per M feet. Relative price. Average price per long ton. Relative price. Average price per short ton. 94 97 127 146 288 305 268 263 263 263 255 247 212 193 185 178 154 $24.5000 24.2500 20.5000 23.7500 30.5000 101 100 . 85 98 126 44.0000 53.0000 57.0000 57.0000 57.0000 57.0000 57.0000 57.0000 57.0000 57.0000 57.0000 182 219 235 235 235 235 235 235 235 235 235 $42.0000 42.0000 38.0000 39.0000 57.0000 63 0000 100.0000 112.0000 139 0000 139.0000 160.0000 160.0000 160.0000 160.0000 157.0000 157.0000 152.0000 94 94 85 87 128 141 224 251 312 312 359 359 359 359 352 352 341 S4.9726 5.1947 5.1826 5.6744 6.1426 6 9000 8.4135 8.4291 8.4118 8.4109 8.4368 8.9964 9.3672 9.4580 9.6087 10.4363 10.4732 98 103 102 112 121 136 166 167 166 166 167 178 185 187 190 206 207 $2.2000' 2.2000 2.2000 3.7500 3.3000 4.1000 4.5000 4.1000 4.1000 4.1000 5.5000 6.0000 6.0000 6.0000 6.0000 7.1000 7.1000 $8.7563 7.9313 8.0125 9.6550 17.5550 18 0938 14.7250 15.1250 14.9813 15.5000 15.7125 14.7550 15.3500 15.8875 15.7350 17.0688 14.7875 104 94 95 114 208 214 174 179 177 183 186 175 182 188 186 202 175 $0.4444 .4583 .6000 6857 L.3571 L 4365 L.2634 L.2364 L.2364 L.2364 L.2000 L. 1636 .noon .9091 .8727 .8364 .7273 ' Coal, Pocabontas, Norfolk. Coke, Connellsville. Relative price. Average Relaprice per tive short ton. price. Copper, ingot, electrolytic, New York. Lead, pig, desilverized, New York. Petroleum, crude, Pennsylvania, at wells. Relative price. 100 100 100 170 150 186 205 186 186 186 250 273 273 273 273 323 323 Pig iron basic. Year and month. Average price per long ton. J u l y 1914 October, 1914 October, 1915 October 1916 October, 1917 October, 1918 October 1919 J a n u a r y , 1920 F e b r u a r y 1920 March 1920 . April, 1920 May 1920 J u n e , 1920 J u l v 1920 August, 1920 . September, 1920.. October 1920 S3.0000 3.0000 2.8500 4.5000 3.9080 4.6320 5.1400 4.6320 4 6320 4,6320 6.4800 6.4800 6.4800 6 4800 6.4800 7.2800 7.2800 100 100 95 150 130 154 171 154 154 154 216 216 216 216 216 243 243 $1.8750 1.6750 2.0000 3.1250 6.0000 6.0000 4.8250 6.0000 6.0000 6.0000 10.5000 12.0000 14.3000 14.3750 15.5500 15.3125 14.3125 77 69 82 128 246 246 198 246 246 246 430 492 586 589 637 628 587 Average price per pound. Relative price. Average price per pound. Relative price. Average price per barrel. SO.1340 .1170 .1800 .2850 .2350 .2600 .2172 .1931 .1906 .1858 .1919 .1906 .1900 .1900 .1900 .1869 .1675 85 74 114 181 149 165 138 123 121 118 122 121 121 121 121 119 106 $0.0390 . 0375 .0450 .0705 .0795 .0805 .0643 .0872 .0881 .0923 .0896 .0856 .0848 .0860 .0898 .0816 .0731 89 85 102 160 181 183 146 198 200 210 204 195 193 195 204 185 166 SI.7500 1.4500 1.7000 2.4000 3.5000 4.0000 4.2500 5.0625 5.5125 6.1000 6.1000 6.1000 6.1000 6.1000 6.1000 6.1000 6.1000 Relative price. 71 59 69 98 143 163 173 207 225 249 249 249 249 249 249 249 249 Average price per long ton. $13.0000 12.8100 15.0000 19.8800 33.0000 33.0000 25.7500 37.7500 42.2500 41.6000 42.5000 43.2500 44.0000 45.7500 48.1000 48.5000 43.7500 Relative price. 88 87 102 135 224 224 175 255 287 283 289 294 299 311 327 330 298 1328 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. Average monthly wholesale prices of commodities—Continued. Cotton yarns, northern cones, 10/1. Leather, sole, hemlock No. 1. Steel billets, Bessemer, Pittsburgh. Steel p] ates, tank, I>ittsburgh. Steel rails, open hearth, Pittsburgh. Worsted yarns, 2-32's crossbred. Year and month. Average Relaprice per tive pound. price. $0 2150 .1700 .1950 .3000 .4200 .6100 6111 .7271 .7465 .7549 .7784 .7672 .7299 .7009 .6310 .5429 .4343 July, 1914 October 1914 October, 1915 October 1916 October, 1917 October, 1918 October, 1919 January, 1920 February, 1920 . . . March, 1920 April 1920 Mav, 1920.. June, 1920 July, 1920. August 1920 September 1920 October, 1920 97 77 88 136 190 276 276 329 337 341 352 347 330 317 285 245 196 Beef, carcass, good native steers, Chicago. Average price per pound. Relative price. $0 3050 108 .3200 .4050 .4600 .4900 5700 .5600 .5700 .5700 .5700 .5700 .5700 .5700 .5500 .5100 .4900 113 144 163 174 202 199 202 202 202 202 202 202 195 181 174 . . . . . . . . . . $19.0000 20.0000 24.6300 46.2500 49.3750 47.5000 38.5000 48.0000 55.2500 60.0000 60.0000 60.0000 60.0000 62.5000 61.0000 58.7500 55.0000 74 78 96 179 191 184 149 186 214 233 233 233 233 242 237 228 213 Coffee, Rio, No. 7. Flour, wheat, standard patents (1918, standard war), Minneapolis. Year and month. July, 1914 October 1914 October, 1915 October, 1916 . October, 1917 October, 1918 October, 1919 . J a n u a r y , 1920 February, 1920 March, 1920. . April 1920 May, 1920 June, 1920 July, 1920 . August, 1920 September, 1920 October, 1920 Average Relaprice per tive long ton. price. Average price per pound. $0.0113 .0115 .0140 .0350 .0325 .0325 .0261 .0274 .0350 .0365 .0375 .0375 .0355 .0338 .0325 .0325 .0309 Relative price. 76 78 95 236 220 220 176 185 236 247 253 253 240 228 220 220 209 Hams, smoked, Chicago. Average Relaprice per tive long ton. price. $30.0000 30.0000 30.0000 35.0000 40.0000 57.0000 47.0000 50.7500 54.5000 54.5000 54.5000 54.5000 54.5000 54.5000 54.5000 54.5000 54.5000 100 100 100 117 133 190 157 169 182 182 182 182 182 182 182 182 182 Illuminating oil, 150°firetest, New York. Average price per pound. $0.6500 .6300 .8500 1.1500 1 8000 2.1500 1.7500 2.2500 2.2500 2.2000 2.2000 2.0000 2.0000 1.7500 1.7500 1.6000 1.5000 Relative price. 84 81 119 148 232 277 225 290 290 283 283 258 258 225 225 206 193 Sugar, granulated, New York. Average price per pound. Relative price. Average price per pound. Relative price. Average price per barrel. Relative price. Average price per pound. Relative price. Average price per gallon. Relative price. Average price per pound. $0.1350 .1438 .1375 .1375 .1900 .2450 .2290 .2320 .2125 .2050 .2090 .1950 .2225 . 2550 .2550 .2600 .2520 104 111 106 106 147 189 177 179 164 158 161 151 172 197 197 201 195 $0.0882 .0656 .0675 .0950 .0850 .1040 .1650 .1628 .1478 .1500 .1514 .1559 .1498 .1306 .0936 .0819 .0759 79 59 61 85 76 93 148 146 133 135 136 140 135 117 84 74 68 $4.5938 5.7563 5.5188 9.2800 10.5000 10.2100 12.0313 14.4438 13.5375 13.1650 14.2813 15.0313 14.1600 13.6688 12.2350 12.5938 11.2063 100 126 120 202 229 223 262 315 295 287 312 328 309 298 267 275 244 $0.1769 .1719 .1613 .1935 .2860 .3361 .2900 .2944 .3056 .3155 .3313 .3556 .3650 .3769 .3725 .3634 .3575 106 103 97 116 172 202 174 177 184 190 199 214 220 227 224 219 215 $0.1200 .1200 .1200 .1200 .1300 .1750 .2200 .2240 .2400 .2500 .2600 .2600 .2600 .2600 .2600 .2750 .2900 97 97 97 97 105 142 178 182 195 203 211 211 211 211 211 223 235 $0.0420 .0593 .0497 .0708 .0818 .0882 .0882 .1537 .1495 .1372 .1919 .2247 .2120 .1910 .1490 .1426 .1078 Relative price. 98 139 116 166 192 207 207 360 350 321 449 526 497 447 349 334 252 DISCOUNT AND INTEREST RATES. In the following table are presented actual discount and interest rates prevailing during the 30-day period ending November 15, 1920, in the various cities in which the several Federal Reserve Banks and their branches are £2 located. A complete description of the several types of paper for which quooo tations are given will be found in the September, 1918, and October, 1918, to FEDERAL RESERVE^ BULLETINS. Quotations for new types of paper will be added from time to time as deemed of interest. As was the case during the previous period, no marked tendencies in rates on the whole are exhibited. Changes are scattered, and are found only in a relatively small number of centers. Neither any particular centers or types of paper show significant changes. Present rates continue higher in almost all centers than rates during the same period of 1919. Discount and interest rates prevailing in various centers during 30-day period ending Nov. 15, 1920. Prime commercial paper. District No. 30 to 90 days. 10. 11. 12. Boston New York i Buffalo Philadelphia... Cleveland Pittsburgh Cincinnati Richmond Baltimore Atlanta Birmingham... Jacksonville New Orleans — Nashville Chicago Detroit St. Louis Louisville Memphis 2 Little Rock Minneapolis Kansas C i t y . . . . Omaha Denver Dallas El Paso Houston San Francisco.. Portland Seattle Spokane Salt Lake City. Los Angeles Open market. Customers. City. H. L. 7 6 7 6 6 8 8 8 8 8 7 7 7 7 9 8 8 10 8 8 8 8 8 8 6 6 6 6 6 6 6 6 64 6 64 64 64 6 7 6 5 6 6 6 6 6 7 7 6 6-64 6" 6 7 7 74-8 7 4 to 6 months. H. L. 8 64 8 6 7 6 6 6 7 6 6 6 6 6 6 6 6 8 7 8 8 8 7 7 8 6 Bankers' acceptances. 60 to 90 days. C. 7 7 6 7 6 64 6 6 7 7 7 7 6 | 74-8 6 7 7 7 64 7 64 7 6 6 74 74 6 7 7 8 6 Interbank loans. 30 to 90 days. 4to6 months. H. L. C. 8 7f 8 H. L. C. 8 7| 8 8 7f 8 74 8 8 7f 8 8"*8""8" 74 6 64-7 74 6i 6 | 84 8 8^7 8 8 8 8 84 ! 8 7| 8 8 8 7 8 7| 8 8 8 7 8*74 8 7| 81 8 Collateral loans—stock exchange or other current. Cattle loans. Indorsed. H. L. 7 6 7 6 7 6 7 6 7 6 6 7 8 7 8 8 7 7 8 6 C. H. L. C. 64 7 7 68 6 | 7 6 6 6 6 6 6 6 6 6 6 7 6 6 6-7 6 64 7 - 7 | 6 7 7 6 6# 7 6 6 8 64 74 7 8 6 84 7 7 74 8 6 8 6J 6 6 6 7 7 7 74 7 74-8 6i 6 64 6i 8 Demand. 3 to 6 months. 3 months. L. C. H. L. C. T. L. C. H. I -. C. H. L. C. H. L. C. H. L. C. 6i | 8 74 74 8 8 744 744 6 6 6 i - 7 | 10 4 6-9 8 55 66-7 7 8 5 6-7 41 7 7 6 7 6 6-7 6 6 54 6 6 5 | 66 6 6 7 8 6 8 5| 7 8 6 7 6 6 6 6 6 6 6 6 i 7 7 74 7 8 64 6 74 64 6" 6 6 j 6 2 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 7 7 7 7 7 8 6 7 8 6 8 6 7 8 6 7 6 7-8 8 6 7-8 8 6 8 6 7-8 8 6 77 7 8 7 74 8 7 8 7 8 8 6 74 7 74-8 8 7 74-8 8 7 8 7 74-8 8 6 78 66 " 7 8 6 8 6 7 7 6 7 7 7 7 7 7 7 7 7 7 7 7 7 7 64 7 6 64 7 8 6 7 6 6i 6! 6 6 64 6£ 6 6 6 64 6i 61 64 6 7 5| 8 7 7 6 Unindorsed. Ordinary loans to customers Secured b y secured b y warehouse Liberty receipts, bonds and etc. certificates of indebtedness. 64 6 61 7 61 7 7 61 7 7 7 1 Rates for demand paper secured by prime bankers' acceptances, high 64, low 5|, customary 5|-6. 7 74 6 8 7 74 74 8 74 6 7-8 8 6 7 8 84 7 6 7 64 74 8 64 7 8 10 8 6 7 7 64 6 64 7 6 6 7" 8 6 7 8 8 7 6 8 8 6 7 8 9 8 5 7 8 5 8 8 7-8 8 7 7 6* 64 10 8 7 7 8 7 8 8 7 8 7 7 7 8 6 74 7 8 6 64 8 644 . . . . . . . . 10 6 74 7 74 7 7 8 8 8 2 6 6 64 7 w 7 7 ?* 4 874 7 ? 7 7 8 7 No report. 00 to CO 1330 DECEMBER, 1920. FEDERAL RESERVE BULLETIN. PHYSICAL VOLUME OF TRADE. In continuation of tables in the November FEDERAL RESERVE BULLETIN there are presented in the following tables certain data relative to the physical volume of trade. The January, 1919, issue contains a description of the methods employed in the compilation of the data and the construction of the accompanying index numbers. Additional material will be presented from time to time as reliable figures are obtained. In the textile industry there has been an indication of a further decline in activity during October and the usual seasonal activity is lacking. Wool consumption during October showed an increase when compared with September, but was only about half the amount consumed during October, 1919. The percentage of idle woolen machinery on the 1st of November, although less in some cases, showed a tendency to increase when compared with October 1. The percentage of idle woolen machinery still continues very much greater than during the corresponding period of 1919. Cotton consumption declined considerably, both when compared with September, 1920, and October, 1919. The number of cotton spindles active during the month also showed a decrease, both when compared with last month and the same month a year ago. Imports of raw silk during October showed a further large decrease and are still considerably less than the amount imported during October, 1919. After a continued increase since March, 1920, the production of bituminous coal during October showed a slight decrease and was considerably less than the production during October, 1919. On the other hand, the production of anthracite coal showed a very large increase during October, but was somewhat less than the production during October, 1919. However, it is to be remembered that the coal strike occurred during September, 1920. Crude petroleum production, after falling off during September, showed a decided increase during October and was considerably larger than the production figure for October, 1919. Pig-iron production showed a slight decline for November when compared with the large production during October, but was very much greater than the production during November, 1919. Steel-ingot production during November fell considerably when compared with October. The unfilled orders of United States Steel Corporation at the close of November showed a further decrease when compared with October, but were well above the figure for November, 1919. Receipts of lumber at Chicago and St. Louis showed an increase during October when compared with September, 1920, but were considerably below the receipts for October, 1919, while shipments showed a decrease both when compared with September, 1920, and October, 1919. Receipts and shipments at these cities during November showed a decline both when compared with October, 1920, and November, 1919. There was a considerable decrease in the production of southern pine, western pine, and North Carolina pine both when compared with September, 1920, and October, 1919. The production of eastern white pine decreased during October, but was considerably above the figure for the same month a year ago. The production of Douglas fir increased during October, but showed a decided falling off when compared with October, 1919. California shipments of citrus fruits showed a further decline during October and were only about one-half the amount shipped during October, 1919. Shipments of deciduous fruits showed a still further increase during October and were more than twice the figure for October, 1919. Receipts of raw sugar at the North Atlantic ports remained practically the same as last month and were considerably less than the receipts during the same month a year ago, while meltings showed a considerable decrease both when compared with last month and the same month a year ago. Stocks of raw sugar at the close of October at these ports showed a slight decrease, but were slightly above the stocks at the close of October, 1919. Receipts and shipments of live stock at 15 western markets during October showed an increase over September, but were in every case less than the respective figures for October, 1919. Stocker and feeder shipments from 35 markets showed the usual seasonal increase, but still reflected the generally lighter movement during 1920. Receipts of grain and flour at 17 interior markets showed a decided falling off during October and were less than the receipts during the same month a year ago. Cotton sight receipts showed the seasonal movement, but were somewhat lighter than during October, 1919. The railroad net-ton mileage during September showed a considerable decrease, but was still above the figure for September, 1919. The tonnage of vessels cleared during October showed a further decrease when compared with September, but was considerably above the figure for October, 1919. Live-stock movements. [Bureau of Markets.] Receipts. Shipments. Cattle and calves, 60 markets. Hogs, 60 markets. and Sheep, 60 Horses mules, 44 markets. markets. Total, all kinds. Cattle and calves, 54 markets. Hogs, 54 markets. and Sheep, 54 Horses mules, 44 markets. markets. October, 1919 Head. 2,989,090 Head. 3,144,831 Head. 3,605,198 Head. 124,496 Head. 9,863,615 Head. 1,532,877 Head. 1,104,302 Head. 2,162,886 Head. 125,700 Head. 4,925,765 1920. January February.... March April May June July August September... October 1,868.723 1,468,370 1,803,073 1,542,150 1,766,394 1,870,121 1,657,743 1,952,086 2,279,345 2,196,939 5,275,412 3,423,992 3,963,245 3,030,801 4,234,022 3,741,202 2, 837,685 2,516,240 2,435,589 2,826,277 1,560,051 1,387,111 1,255,490 1,441,072 1,421,009 1,592,450 2,000,758 2,561,661 2,826,693 2,945,709 138,541 108,056 82,584 48,036 40,901 32,199 35,668 73,423 57,468 38,657 8, 842, 727 752,605 6,387,529 591,691 7,104,392 570,323 6,062,059 593,362 7,462,326 771,865 7,235,972 789,953 6,531,854 721,328 7,103,410 869,849 7,599,095 1,079,170 8,007,582 1,159,459 1,665,274 1,287,169 1,399,485 1,119,205 1,374,902 1,295,936 1,095,470 953,088 931,261 1,064,175 669,458 572,634 483,550 724,718 769,718 768,172 1,015,612 1,459,150 1,581,680 1,932,083 138,145 110,827 87,896 47,998 40,021 33,539 37,152 69,971 60,414 37,994 3,225,482 2,562,321 2,541,254 2,485,283 2,955,506 2,887,600 2,869,562 3,352,058 3,652,525 4,193,711 Total, all kinds. DECEMBER, 1920. 1331 FEDERAL RESERVE BULLETIN. Receipts and shipments of live stock at 15 western markets. [Chicago, Kansas City, Oklahoma City, Omaha, St. Louis, St. Joseph, St. Paul, Sioux City, Cincinnati, Cleveland, Denver, Fort Worth, Indianapolis, Louisville, Wichita.] RECEIPTS. [Monthly average, 1911-1913=100.] Cattle and calves. Relative. Head. October, 1919 Hogs. Sheep. Relative. Head. 2,317,487 230 2,160,079 1,400,031 1,038,092 1,203,499 1,040,903 1,203,656 1,290,265 1,188,019 1,459,565 1,736; 009 1,628,564 139 114 119 103 120 128 118 145 172 162 3,912,449 2,440,154 2,910,909 2,150,281 3,128,249 2,746,390 2,115,639 1,818,245 1,597,622 1,836,748 Horses and mules. Relative. Head. Head. 2,405,511 Relative. Total, all kinds. Relative. Head. 78,940 171 6,962,017 151 76 74 66 68 58 74 95 124 139 136 90,022 75,488 56,880 31,235 24,889 21,056 26,257 55,371 38,950 24,716 196 176 124 68 54 46 57 120 85 54 6,438,093 4,531,850 5,071,587 4,150,610 5,158,954 5,064,239 4,631,373 5,021,900 5,265,893 5,355,358 139 105 110 90 112 110 100 109 114 116 1920. January February.... March April May... June July August September... October 178 119 132 98 142 125 96 83 73 84 1,035,501 948,116 900,293 928,191 796,160 1,006,528 1,301,458 1,688,719 1,893,312 1,865,330 SHIPMENTS. October, 1919 1,155,575 284 655,220 135 1,385,774 275 | 80,528 3,277,097 228 548,841 427,608 418,310 414,937 515,062 528,273 508,199 640,295 819,371 856,327 135 113 103 102 127 130 125 157 202 213 1,026,763 814,253 923,525 712,087 822,907 797,946 737,923 627,670 540,812 584,720 212 180 191 147 170 165 152 130 112 121 403,382 334,012 298,878 373,381 316,002 399,613 644,557 899,342 1,027,510 1,192,912 80 71 59 74 63 79 128 179 204 237 89,990 78,540 61,625 31,348 24,037 22,363 27,728 52,163 40,890 24,051 2,068,976 1,654,413 1,702,339 1,531,783 1.678.0J8 1,748,195 1,918,407 2,219,470 2,428,583 2,668,032 144 123 119 107 117 122 134 155 169 186 1920. January February March April May , June July August Septenber... October Shipments of stockers and feeders from 35 markets. Cattle and calves. October, 1919... January February March April Hogs. Total, all kinds. Sheep. 830,825 106,625 1,384,404 2,321,854 346,430 237,939 240,121 242,996 80,719 82,981 104,962 72,834 300,449 140,219 135,246 267,664 727,598 461,139 480,329 583,494 1920. Cattle and calves. 291,895 270,053 217,292 279,402 474,852 573,136 May June July August September October... Hogs. Sheep. 252,221 66,144 226,696 42,156 25,826 322,869 34,479 567,430 44,483 789,773 59,155 1,055,370 Total, all kinds. 610,260 538,905 565,987 881,311 1,309,108 1,687,661 Exports of certain meat products. [Department of Commerce.] [Monthly average, 1911-1913=100.] Beef, canned. Beef, fresh. Beef, pickled, and other cured. Pounds. Relative. Pounds. Relative. Pounds. Relative. October, 1919.. 1,793,784 271 31,178,216 2,513 3,402,422 1,081,643 163 735,132 119 847,397 128 1,606,737 243 5,976,493 902 6,787,622 1,024 5,217,838 788 1,231,070 186 244,261 37 207,503 31 22,872,223 13,010,793 6,036,166 17,687,306 4;304,038 12,526,669 5,506,812 343,352 1,964,543 522,251 1,844 1,124 487 1,426 347 1,010 444 28 158 42 1,670,500 1,631,457 2,290,835 2,241,460 3,056,449 2,563,702 1,973,004 2,152,982 1,613,657 1,995,039 1920. January February March April Mav June July August September October Hams and shoulders, cured. Bacon. Relative. Lard. Pounds. Relative. Pounds. 127 56,462,312 337 13,090,972 88 41,016,518 63 65 86 84 114 96 74 81 60 75 77,501,002 75,891,195 75,002,410 24,356,349 5,412,388 60,730,935 31,562,761 23,333,156 41,371,561 49,838,768 463 488 448 145 301 363 188 139 247 298 13,905,923 24,217,706 31,088,859 15,64.0,236 17,896,764 21,277,089 8,385,089 9,360,469 8,997,124 8,787,853 93 174 208 105 120 143 56 63 60 59 38,823,902 36,644,906 69,429,785 40,758,401 55,544,483 45,069,517 47,061,422 31,020,802 46,326,353 54,173,979 Pounds. Pickled pork. Relative. Pounds. Relative. 3,804,290 86 88 4,251,187 89 3,710,308 158 3,160,456 93 2,784,535 126 3,816,157 102 3,962,649 107 2,926,247 71 2,257,511 105 3,279,902 123 3,549,456 96 93 S 63 90 86 66 51 74 80 1332 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. Receipts of grain and four at 17 interior centers. [Chicago, Cleveland, Detroit, Duluth, Indianapolis, Kansas City, Little Rock, Louisville, Memphis, Milwaukee, Minneapolis, Omaha, Peoria St. Louis, Spokane, Toledo, Wichita; receipts of flour not available for Cleveland, Detroit, Indianapolis, Louisville, Omaha, Spokane, Toledo; and Wichita.] [Compiled from reports of trade organizations at these cities.] [Monthly average, 1911-1913=100.] Wheat. Corn. Oats. Rye. Barley. Total grain. Flour. Total grain and flour.1 RelaRelaRelaRelaRelaRelaBushels. Rela- Bushels. tive. Bushels. Rela- Bushels. tive. Bushels. tive. Bushels. tive. Barrels. tive. Bushels. tive. . October, 1919 51,006,164 1920. January February March April May June July August September... October 074,624 115,324 007,798 260,236 510,063 020,640 714,399 039,021 181,275 403,825 189 12,493,107 56 22,563,414 112 4,472,397 404 4,369,326 61 94,901,408 122 3,468,787 177 110,510,950 127 93 24,: :, 139,094 7: 26,051, 855 6' 24,306,196 57 11,326,509 76 l:.2,107,950 78 27;! ",251,166 i, 824,268 160 9,840,320 1 1 20, !0,696,955 ( 16819,064,508 108|20,925,941 324 20,575,654 108 19,149,624 50 12,952,593 54|16,724,389 12114,260,053 93J18,734,180 44130,728,748 92 31,031,569 85 21,235,162 104 4. 378,610 109 3, 263,686 95J3, 548,739 64i2, 914,553 83i3, 758,507 7l|3i 177,770 93!3. 096,026 1523; 191,103 1545, 571,428 105 4 455,979 396 3. 298,544 316 2! 470,622 3212; 928,440 263 2! 245,881 340 2, 690,076 287 2, 721,367 280 2: 659,921 288 3! 007,508 503 Q, 630,056 403 5 795,028 46 77,, 816,813 100 2,298,692 97 2,059,421 ~~ ',617,544 871 57 888,423 72 1 ,913,075 88 2'!, 113,979 96 2,052,110 1151,949,339 115 141 1,843,954 ^,137,639 123 2; 117 88,160,927 113 79,744,536 83 75,219,745 45 48,697,676 98 64,399,823 108 80,057,876 105 84,263,289 99198,578,726 94!ll8,409, 109 105,573,878 102 99 87 56 74 92 97 114 137 122 1 3' 70,477,141 4 67,940, 797 416' 31 44,699,772 38 55,790,985 55; 38 68,430,996 37 75,028,794 42 89,806,700 92 110,111,283 8195,954,502 Flour reduced to its equivalent in wheat on basis of 4i bushels to barrel. Shipments of grain and flour at 14 interior centers. [Chicago, Cleveland, Detroit, Duluth, Kansas City, Little Rock, Louisville, Milwaukee, Minneapolis, Omaha, Peoria, St. Louis, Toledo, Wichita; shipments of flour not available for Cleveland, Detroit, Louisville, Omaha, Toledo, and Wichita.] Corn. Wheat. Oats. Rye. Barley. Flour. Total grain. Total grain and flour.1 RelaRela-| RelaRelaRela- Bushels. RelaRelaBushels. tive. tive. Bushels. tive. Bushels. tive. i Bushels. tive. Bushels. tive. Barrels. tive. Bushels. tive. 7,111,877 50!16,706,440 1101,426,528 202 3,087,951 79 54,500,986 110 5,975,971 176 81,392,856 126 11412, 326,051 9811 977,640 165,894 71 15,822,099 13,073,0™ 79 14,243,957 38 8,691,440 8691440 0,4 4, 4 2 8 8 42 20,444,288 7lll2,805,056 64)11,345,429 44|12,814,067 44|12,69O,866 73J1O,6O1,178 104 3,685,914 5212, 007,718 92 2,113,505 3201, 306,340 94 3,062,530 4331, 574,887 57 8,811,500 1,2451, 651,509 9861, 488,387 135 6,977,479 7671, 905,225 84 5,428, 886 632 2, 092,672 75 4,476,238 407 2, 231,851 84 2,880,003 613 3, 556,180 84 4,339,057 670 4, 529,091 70 4,742,380 51)51,355,; 36142,584,789 40|41,074,604 42)35,584,903 38|55,569,420 49 50,469,450 54)46,016,965 57 49,120,881 91 55,570,771 116 56,467,822 104 4, 140,314 92:3, 156,962 83|2; 960,175 72L 702,132 1122: 877,122 102!3: 725,330 93i3' 767,678 99|3: 605,105 112J3: 187,454 1143 758,735 122 69, 987,282 100 56, 791,118 87 54, 395,392 50 43, 244,497 85 68, 516,469 9167, 233,435 111 62, 971,516 106 65, 343,854 94 69, 914,314 111 73, 382,130 108 94 84 67 106 104 97 101 108 114 October, 1919 26,168,190 1920. January February March April May June July August September... October , 514,087 ,114,215 027,336 058,643 720,121 242,046 002,099 934,816 700,593 ,258,795 72 371,811 134 939,145 088,237 131 123 100,527 162 260,144 186 284,075 170 10'336,378 1 Flour reduced to its equivalent in wheat on basis of 4§ bushels to barrel. Receipts of grain and flour at nine seaboard centers. [Boston, New York, Philadelphia, Baltimore, New Orleans, San Francisco, Portland (Oreg.), Seattle, Tacoma; receipts of flour not available fcr Seattle and Tacoma.] [Compiled from reports of trade organizations at these cities.] [Monthly average, 1911-1913=100.] Wheat. Corn. Oats. Rye. Barley. Total grain. Flour. Total grain and flour.1 RelaRelaRelaRelaRelaRelaRelaBushels. tive. Bushels. Relative. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Barrels. tive. Bushels. tive. 1919. October 507,065 4,335,038 911,717,301 1,209 1,491,759 1,244,393 1,203,649 1,317,555 767,332 1,878,334 3,305,542 1,576,842 1,456,958 1,844,753 2,663,274 2,331,246 3,646,727 1,546,590 2,382,271 3,194,897 3,499,101 2,671,365 3,069,700 1,828,515 56 2,643,611 53 3,212,668 77 4,119,986 33 3,440,350 50 5,117,806 67 6,506,053 6 74 5,048,019 56 3,407,799 65 4,133,465 38 5,436,354 14,755,827 1920. January 5,711,009 February 4,898,690 March 6,486,745 5,441,434 April 10,621,723 May 13,374,721 June 18,710,633 July 28,098,022 August September... 31,693,246 29,028,202 October 45 42 51 43 84 106 149 223 252 230 1 796,839 48 22,112,070 97 2,521,329 24133,458,051 122 1,8611,297,839 2,42311,315,291 2,9001,300,871 2,421 685,054 3,602 556,764 4,5791,191,767 3,553 2,098,083 2,398 2,289,791 2,9091,815,227 3,826 2,558,276 7813,807,492 85 13,002,288 7816,757,978 41 "12,430,983 34 19,445,896 72 26', 145', 772 126 32,661,378 138 38,043,819 109 42,168,596 154 40,696,100 611,561,693 611,102,606 741. " ' r,752,860 55 843,916 861,,301,211 115 1,486,365 1441'., 660,849 1681,390,077 1861,422,872 1791 ,463,830 150 20,835,111 ,964,015 168 24,645,848 6,228,605 125 25,301,346 142 32,834,415 0,135,198 :4,299,166 136 48,571,520 140 47,283,335 76 70 90 59 92 120 146 162 177 173 Flour reduced to its equivalent in wheat on basis of 4§ bushels to barrel. DECEMBER, 1020. FEDERAL. RESERVE BULLETIN. Stocks of grain at eight seaboard centers at close of month. [Boston, New York, Philadelphia, Baltimore, New Orleans, Newport News, Galveston, San Francisco.] [Compiled from reports of trade organizations at these cities.] [Bushels.] Wheat. Corn. Oats. Rye. Barley. 3,079,360 30,865,383 2,587, 2,340, 1,891. 2,034. 1,071, 1,193. 3,187. 4,052^ 4,110. 3,577, 16,580,330 14,166,660 12,764,609 13,040,921 15,001,123 13,082,559 18,455,017 21,375,743 25,586,809 26,410,498 Total grain. 1919. October 25,322,242 82,240 1,898,271 483,270 ,485,491 ,634,682 280,682 704,155 781,927 492,819 923,745 915,892 517,070 277,003 711,501 948,239 851,287 967,475 437,521 459,568 744,167 1,097,945 1,146,514 1,292,818 2,398,639 1,571,209 1,351,457 389,958 819,790 901,756 1,323,940 1,532,272 2,398,157 2,521,049 2,397,156 2,671,743 2,389,321 1,944,350 1,889,965 2,035,334 1,275,554 777,445 2,414,910 1,742,178 1920. January February March..". A pril May June July August September October NOTE.—Figures for San Francisco include also stocks at Port Costa and Stockton. Cotton. [New Orleans Cotton Exchange.] [Crop years 1911-1913=100.] Bales. Overland movement. Port receipts. Sight receipts. Relative. Relative. Bales. Bales. American spinners' takings. Relative. Relative. Bales. Stocks at ports and interior towns at close of month. Relative. Bales. 1919-20. August September. October November.. December.. January February... March April May Season total. 302,238 300 001 621,784 1,155,324 1,214,337 793,453 374,093 270,269 276,805 214,678 1,412,048 1,501,805 2,340,881 2,616,383 2,765,040 175 | 2,470,496 2,510,482 2,276,737 2,148,038 1,913,407 1,674,828 6,365,990 1,461,000 25.322 17,324 79,830 251,841 254,460 387,780 1,365,397 1,607,602 2,101,839 327,001 632,902 1,835.273 2,445,698 2,218,773 1,583,473 1,050,964 '796,632 552,943 360,607 26 50 146 195 177 126 90 64 44 29 238,271 260,698 1,029,331 1,178,443 1.069,693 '982,030 725,515 621,808 499,187 289,809 26 28 112 128 116 107 85 68 54 32 49,630 26,138 110,202 245,237 242,940 205,233 138,084 108,573 48,565 57,661 12,432,856 83 7,299,667 66 308,262 771,590 ],463,041 25 62 117 159,586 443,149 971,334 17 48 106 47 25 105 233 231 195 141 103 46 55 66 137 120 127 199 222 235 210 213 193 182 162 1920-21. August Sepi ember. October 116 136 178 California shipments of citrus and deciduous fruits. [October, 1920, on, California Fruit News and Bureau of Markets.] [1911-1913--= 100.] Oranges. October, 1919 Lemons. Total citrus fruits. Carloads. Relative. Carloads. Relative. Carloads. Relative. 2,706 Ill 572 141 3,278 115 5,529 2,457 2,683 4,715 3,720 5,048 3,294 2,822 1,707 1,409 752 100 118 193 152 206 135 115 70 58 31 630 852 651 508 1.353 1,576 664 751 464 925 156 225 161 125 334 389 164 185 115 3,087 3,535 5,366 4,228 6,401 4^870 3,486 2,458 1,873 1,677 108 133 188 148 225 171 122 123 139 155 22 24 1,263 3,179 7,239 9,021 11,880 1920. January February March April May J une July August September October Total deciduous fruits. 59 Carloads. 1334 FEDERAL RESERVE BULLETIN. DECEMBER, 192C. Sugar. [Data for ports of New York, Boston, Philadelphia.] [Weekly Statistical Sugar Trade Journal.] [Tons of 2,240 pounds. Relative. Tons. Raw stocks at close of month. Meltings. Receipts. Relative. Tons. Monthly average 1911-1913=100.] Relative. Tons. October, 1919.. 233,650 127 216,000 118 63,181 37 1920. January February March April 208,554 316,667 335,532 310,580 113 184 182 169 181,000 269,000 333,000 307,000 99 157 182 167 37,986 85,653 88,185 91,765 22 50 51 53 Relative. Tons. Raw stocks at close of month. Meltings. Receipts. Tons. Relative. Relative. Tons. 1920. May.. June 254,616 301,318 386,328 308,313 109,302 109,335 July August September October 138 164 210 168 59 59 286,000 319,000 325,000 287,000 164,000 114,000 156 174 177 156 89 62 60,381 42,699 104,027 125,340 70,642 65,977 35 25 60 73 41 38 Naval stores. [Data for Savannah/Jacksonville, and Pensacola.] [Compiled from reports of trade organizations at these cities.] [In barrels.] Spirits of turpentine. Rosin. Spirits of turpentine. Receipts. Stocks at close of month. 19,367 27,389 67,0 186,231 8,300 3,762 1,876 7,644 24,910 17,900 4,819 3,996 47,874 29,303 14,660 27,029 165,927 140,559 103,443 98,517 October, 1919 Receipts. Stocks at close of month. Receipts. 1920. January February March April 1920. May June July August September.. October Stocks at close of month. 23,473 33,522 39,158 33,997 32,162 30,260 6,174 19,654 30,906 27,963 44,396 49,885 Rosin. Receipts. Stocks at close of month. 68,163 94,904 117,088 111,497 97,797 88,766 78,113 108,656 135,979 144,109 176,612 195,837 Lumber. [From reports of manufacturers' associations.] [M feet.] Southern pine. Western pine. Number of m i Is. Production. Ship- Num- Producof ments. ber mills. tion. October, 1919 201 421,025 356,124 1920. January February March April May June July August September... October 202 386,481 203 383,239 205 436,944 205 •438,056 205 430,271 204 385,293 207 385,842 204 383,540 204 376,566 206 344,427 404,706 369,047 424,775 359,461 347,404 287,487 331,273 337,677 378,195 329,751 52 69,895 85,583 130,425 167,165 183,621 197,461 177,262 171,143 164,312 146,424 Ship- Douglas fir. Number of Producmills. tion. Ship- 143,252 124 419,108 339,321 144.180 147,180 156,211 133,114 132.181 125,770 103,500 123,344 98,806 69,936 128 124 123 126 124 127 127 123 127 120 327,568 332,511 342,948 359,651 424,687 343,801 242,612 366,433 299,277 355,614 344,568 295,934 329,012 274.597 383,346 271,815 225,666 322,908 238,965 426.598 Eastern white pine. Number of Producmills. tion. 10 Ship- 12,888 IS, 139 38,007 32,551 43,771 46,222 12,731 25,771 37,459 46,149 48,962 40,124 63,614 59,687 61,620 61,757 26,323 41,557 49,668 55,991 45,445 30,928 North Carolina pine. Number of Producmills. tion. 26 Shipments. 24,055 22,079 24,678 15,534 29,633 13,659 15,992 14,259 20,756 19,511 21,887 19,487 26,283 15,202 29,896 10,613 18,657 10,481 15,217 14,130 16,043 14,877 DECEMBER, 1920. 1335 FEDERAL, RESERVE BULLETIN. Receipts and shipments oj lumber at Chicago and St. Louis. [Chicago Board of Trade and Merchants' Exchange of St. Louis.] [Monthly average, 1911-1913=100.] Receipts. M feet. October, 1919... November, 1919 January February March April Shipments. Relative. 440,216 380,186 M feet. Receipts. Relative, 272,571 235,274 107 93 219,783 224,286 296,047 131,933 87 95 117 1920. * 403,604 421,692 500,230 236,975 87 97 108 51 M feet. 1920. May.. June July August September. October November. Shipments. Relative. 313,447 393,738 399,615 370,352 375,456 398,333 342,971 M feet. 195,965 212,339 184,767 220,368 242,857 220,116 190,282 Relative, 77 84 73 87 96 87 75 Coal and coke. [U. S. Geological Survey.] [Monthly average, 1911-1913=100.] Bituminous coal, estimated monthly production. Short tons. October, 1919 Relative. 56,243,000 Anthracite coal, esti- Beehive coke, estimated mated monthly promonthly production. duction. Short tons. Relative. Short tons. S, 459,000 114 1,521,000 58 7,366,000 8,335,000 7,240,000 6,543,000 7,745,000 7,641,000 7,785,000 7,332,000 5,125,000 7,645,000 100 92 98 88 105 103 105 99 69 103 1,982,000 1,731,000 2,025,000 1,602,167 1,689,500 1,710,333 1,693,000 1, 776,000 1, S20,000 2,065,000 76 71 77 61 65 65 65 68 70 79 1920. January February March April May June July August September October 48,689,000 40,127,000 46,792,000 37,939,000 39,753,000 43,710, 000 45,523,000 48,389,000 51,093,000 50,744,000 131 116 126 102 107 118 123 131 138 137 Relative. Crude petroleum. [TJ. S. Geological Survey.] [Barrels of 42 gallons each.] Produced. Barrels. October, 1919 January February March April Relative. Produced. Stocks at end of m o n t h (barrels). 33,319,000 174 I 135,461,000 33,980,000 33,212,000 36,461,000 36,283,000 177 186 190 127,164,000 126,339,000 125,597,000 124,991,000 1920. Barrels. May.. June. July.. August September October 1920. I Stocks at end of month Relative. (barrels). 36,931,000 37,295,000 38,548,000 39,397,000 I 37,889,000 39,838,000 193 195 201 206 198 208 124,689,000 126,763,000 128,168,000 129,043,000 128,788,000 129,382,000 1336 DECEMBER, FEDERAL RESERVE BULLETIN. 1920. Total output oj oil refineries in United States. [Bureau of Mines.] Gasoline (gallons). Kerosene (gallons). 32,601,044 339,582,564 199,244,293 683,409,674 70,236,692 30,815,160 29,208,723 33,592,004 32,852,040 34,578,282 34,906,078 37,024,052 39,757,770 40,549,316 336,719,157 322,588,697 367,137,678 355,597,451 381,079,291 415,158,911 423,419,770 444,141,422 453,881,096 195,956,392 194,523,334 191,110,175 184,469,017 180,877,089 173,581,000 172,213,511 189,010,459 199,140,024 617,555,156 589,684,857 686,945,963 643,088,785 707,198,355 689,878,061 751,193,898 834,322,503 836,700,086 75,878,635' 74,243,073 81,818,973 85,568,064 89,252,410 94,964,222 92,369,504 91,078,569 86,230,371 Crude oil run (barrels). September, 1919 1920. January February March April May June July August September Gas and fuel Lubricating (gallons). (gallons). STOCKS AT CLOSE OF MONTH. Sept. 30, 1919 • 1920. Jan. 31 Feb. 29 Mar. 31 Apr. 30 May 31 June 30 July 31 Aug. 31 Sept. 30 13,925,441 371,125,419 311,843,057 862,135,385 158,967,070 13, 200,727 13, 500,599 14, 346,458 15, 145,691 15, 331,375 16, 172,280 17, 086,253 17, 960,558 18, 830,079 515,934,364 562,996,489 626,393,046 643,552,644 577,671,795 504,055,601 413,279,319 323,239,991 288,195,394 327,548,646 652,080,901 330,120,942 590,322,125 334,617,117 i 580,182,858 376,358,123 590,687,009 419,077,605 618,939,135 421,343,353 641,968,363 410,853,047 655,152,293 378,548,791 i 708,608,472 379,300,705 ! 771,126,965 141,690,177 132,759,244 130,630,597 140,355,972 135,882,485 133,212,551 131,866,455 130,797,810 130,449,829 Iron and steel. [Great Lakes iron-ore movements, Marine Review; pig-iron production, Iron Age; steel-ingot production, American Iron ar.d Steel Institute. [Monthly average, 1911-1913=100; iron ore, monthly average, May-November, 1911-1913=100.] Iron-ore shipments from the upper Lakes. Pig-iron production. Steel-ingot produc- Unfilled orders U.S. Steel Corporation at close of month. Gross tons. Relative. Gross tons.! Relative. Gross tons. Relative. Gi oss tons. Relative. 6,201,883 3,152,319 October, 1919.... November, 1919.. January February... March April May June July August September.. October November.. 102 52 1920. 230,854 6,976,085 9,233,566 9,638,606 9,270,763 8,923,482 8,848,986 115 152 159 153 147 146 1,863,558 2,392,350 80 103 3,015,181 2,978,879 3,375,907 2,739,797 2,985,682 3,043,540 3,067,043 3,147,402 3,129,323 3,292,597 2,934,908 130 138 146 118 129 131 132 136 135 142 127 2,968,102 2,865,124 3,299,049 2,638,305 2,883,164 2,980,690 2,802,818 3,000,432 2,999,551 3,015,982 2,638,670 6,472,668 7,128,330 123 -135 123 9,285,441 127 9,502,081 137 9,892,075 109 10,359,747 119 10,940,466 10,978,817 116 11,118,468 124 10,805,038 124 10,374,804 125 9,836,852 109 9,021,481 176 180 188 197 208 208 211 205 197 187 171 Imports oj pig tin. [Department of Commerce.] [Monthly average, 1911-1913=100.] Pounds. October, 1919 January February March. April 16,210,512 Relative. 178 1920. 8,772,953 13,925,843 11,980,019 10,345,130 Pounds. 97 164 132 114 May June July August September October Relative. 1920. 9,102,341 11,232,325 17,584,167 11,195,937 9,596,819 6,741,331 100 124 193 123 106 74 1337 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. Raw stocks of hides and skins. [Bureau of Markets; July, 1920, on, Bureau of the Cens s.] [In pieces.] September 30,1919. 1920. Jan. 31 Feb. 29 Mar. 31 Apr. 30 May 31 June 30 September 30. 1 Cattle hides. Calfskins. Kipskins. 6,158,289 2,055,084 947,546 6,773,360 6,559,337 6,558,300 6,072,895 5,849,375 6,212,946 5,093,824 920,184 859,697 930,218 281,370 724,056 107,393 526,391 Goat. Sheep and Iamb. Kid. Cabretta. 16,749,664 823,740 2,736,802 8,661,215 1,036,372 13,474,529 1,141,620 16,481,328 966,850 15,968,660 834,711 14,666,590 924,042 14,131,330 915,499 14,562,713 037,417 113,408,277 927,436 665,524 468,188 156,871 791,150 60,999 1,893,614 2,197,683 2,047,519 1,947,499 2,253,785 2,070,471 2,197,149 8,902,067 9,460,914 9,227,252 8,911,681 9,004,621 10,993,22K 11,235,417 Figures for kid skins included. Textiles. [Silk, Department of Commerce; cotton and idle wool machinery, Bureau of the Census; wool consumption, Bureau of Markets.] [Cotton, monthly average crop, years 1912-1914=100; silk, monthly average, 1911-1913=100.] Percentage of idle woolen machinery on first of month to total reported. Cotton consumption. Bales. Imports of raw silk. Cotton spindles active during month. Wool consumption (pounds). Relative. Spinning spindles. Looms. Under Sets of Combs. Wider than 50- 50-inch cards. Woolen. Worsted. inch reed reed space. space. Pounds. Relative. October, 1919... 556,041 124 34,344,095 60,018,415 16.0 20.7 8.2 5.9 7.7 7.2 3,955,845 193 1920. January February March April May June July August September October November 591,725 516,594 575,704 567,839 541,080 555,521 525,405 483,193 457,647 399,837 132 123 128 126 120 124 117 107 102 89 34,739,071 34,668,643 34,667,747 34,346,737 34,066,236 34,503,754 34,666,842 34,471,515 34,040,806 33,669,804 63,059,862 55,247,652 58,344,602 57,887,832 50,649,381 40,679,920 32,372,064 32,849,956 30,928,337 33,703,523 14.5 12.2 14.9 13.1 15.2 26.8 42.5 49.5 51.8 49.0 46.9 18.5 17.6 19.8 16.9 18.2 22.4 32.3 29.9 34.8 34.9 37.7 8.8 7.6 9.8 9.6 10.6 21.1 38.0 39.6 39.6 38.3 39.5 7.2 6.9 7.0 7.1 6.7 15.9 35.0 33.4 37.3 26.3 32.8 9.1 7.1 10.3 9.5 11.5 23.1 42.0 45.5 44.6 43.2 42.8 10.2 7.9 11.7 7.0 7.0 14.2 32.7 37.6 38.0 26.0 34.8 4,855,989 3,696,121 2,491,651 2,227,857 2,505,798 3,221,177 2,581,920 2,690,690 1,968,801 1,531,850 237 194 122 109 122 157 126 132 96 75 Production oj wood pulp and paper. [Federal Trade Commission.] [Net tons.j Wood pulp. October, 1919 1920. January February March April Newsprint. Book. 308,710 125,216 89,440 302,541 266,191 327,143 350,194 96,419 S5,532 95,851 95,251 129.663 114,235 127,847 128,269 Paper board. Wrapping. Fine. 202,524 67,110 34,808 211,934 176,855 207,863 199,395 70,109 61,574 68,403 75,347 32,S86 29,202 33,671 33,493 1920. May June July August September October Wood pulp. Newsprint. Book. 363 815 115 334 965 913 877 129,230 130,380 J29,853 128,818 121,00.5 124,818 92,856 94,957 95,526 94, 424 94,142 93,849 337; 312, 305, 293, 319, Paper board. 213, 215, 218, 215, 218, 196, 475 131 771 633 743 604 Wrapping. Fine. 70,511 72,987 73,487 75,226 70,917 73,100 31,575 3-1,121 34,078 33,122 34,207 34,526 Sale oj revenue stamps for manufactures oj tobacco in the United States (excluding Porto Rico and Philippine Islands). [Commissioner of Internal Revenue.] Cigars. Cigarettes. Large. Small. Small. Manufactured tobacco. October, 1919 Number. 677,622,154 Number. 64,170,793 Number. 5,028,875,337 Pounds. 39,335,546 1920. January February March April 663,634,243 593,832,200 753,239,958 , 663,577,579 58,837,900 43,358,500 55,052,100 56,548,853 4,528,760,833 3,536,117,847 4,373,778,917 3,756,989,397 33,608,313 31,531,460 38,422,481 34,327,970 Cigars. 1920. May June July August September October Cigarettes. Large. Small. Small. Number. 676,227,828 708,112,284 678,751,956 672,020,289 678,640,116 704,799,089 Number. 59,943,280 52,735,587 51,766,100 48,171,240 50,175,580 60,882,760 Number. 3,953,345,380 4,088,834,583 3,053,336,563 3,569,397,443 3,557,482,503 3,840,334,806 Manufactured tobacco. Pounds. 34,875,839 34,231,058 30,988,646 32,138,941 32,094,569 27,123,774 1338 DECEMBER, 1920. FEDERAL RESERVE BULLETIN. Output of locomotives and cars. \Locomotives, United State? Railroad Administration; February on, reports from individual producers; cars, Railway Car Manufacturers' Association.] Locomotives. Domes- Foreign tic comshipped. pleted. October, 1919. 1920. January February March. ... April Locomotives. Output of cars. Domes- Foreign. tic. Total. Number. Number. Number. Number. Number. 89 55 10,445 3,715 48 43 45 22 85 59 96 4,650 3, 960 3,053 2,313 1,914 1,066 2,040 1,934 14,160 May June 1920. Julv 6,56! 1 August 5,026 ! September 5, 093 ! October 4,247 Output of cars. Domes- Foreign tic comshipped. pleted. Domes- Foreign. tic. Number. Number. 112 83 72 99 54 122 114 125 69 126 106 198 Number. 2,792 2,7S0 2.731 3,409 3,955 6,309 Number. 1,402 731 434 1,210 1.203 684 Total. Number. 4,194 3,511 3,165 4,619 5,058 6,993 Vessels built in United States, including those for foreign nations, and officially numbered by the Bureau of Navigation. [Monthly average, 1911-1913=100.] Gross Number. tonnage. Relative. Gross Number. tonnage. Relative. October, 1919 January February March April 210 1920. 115 140 170 164 357,519 1,479 1,050 1,185 1,157 1,040 253,680 267,231 279,709 251,442 1920. 184 198 173 178 135 120 May June July August September October 776 1,105 899 1,073 1,084 940 185,145 267,076 217,239 259,210 261,962 227,162 Tonnage of vessels cleared in the foreign trade. [Department of Commerce.] [Monthly average, 1911-1913=100.] Net tonnage. American. Foreign. October, 1919... 2,645,778 1920. January February March April 1,933,385 1,702,407 2,040,031 2,504,038 Total. Net tonnage. PercentRela-j age Relative. I Ameri- tive. can to total. 2,073,560 4,719,338 121 56.1 1,949,798 1,628,212 2,040,538 1,960,634 3,883,183 3,330,619 4,080,569 4,464,672 100 92 105 115 49.8 51.1 50.0 56.1 197 202 198 222 Per cent- 1920. May June July August September... October American. Foreign. Total. 2,729,790 % 436,247 3,199,274 3,141,913 3,302,538 3,616,052 3,616,267 3,929,602 3,421,531 3,513,599 3,334,961 3,199,742 5,166,037 6,341,187 6,918,590 7,545,869 6,935,130 6,534,703 RelaRela- age tive. Ameri- tive. can to total. 133 163 178 194 178 168 52.8 50.5 47.7 47.9 49.3 51.0 209 200 189 190 195 202 Net ton-miles, revenue and nonrevenue. [United States Railroad Administration; March, 1920, on, Interstate Commerce Commission.] September, 1919 January February March April 38,860,311,000 1920. ; 34,769,722,000 32,758,789,000 37,990,993,000 28,490,595,000 1920. May June July August September i 37,884,967,000 38,179,565,000 40,435,508,000 42,706,835,000 40,999,843,000 DECEMBER, 1920. 1339 FEDERAL RESERVE BULLETIN. Commerce of canals at Sault Ste. Marie. [Monthly average, May-November, 1911-1913=100.] EASTBOUND. Grain other than wheat. Bushels. October, 1919 November, 1919 Relative. Bushels. Relative. Barrels. Total Iron ore. Flour. Wheat Relative. Short tons. Relative. Short tons. Relative. 4 351 059 8,654,903 49 97 22 252 196 17,388,391 116 90 1 544 510 1,402,260 133 121 6 059 450 3,299,532 102 56 7 063 120 4,201,881 101 60 6 008 000 11,904 942 3,076,986 3,133,419 2,315,909 3,102,770 7,198,311 9,921,968 134 35 35 26 35 81 111 4 274 611 13 497 995 5,976', 125 7, 838,470 7,512,510 11,624,488 28 470 696 37,236,311 70 31 41 39 60 148 193 658 910 1,082,521 1,171,250 1,038,221 621,010 1,142,991 1/317,800 57 93 101 89 53 98 114 162 630 6 683,820 8,707,350 9,235,086 8,784,821 8,721,412 8,656,823 5,553,173 113 146 156 148 147 146 94 454 726 7,483,836 9,153,884 9,749,701 9,278,071 9,290,129 9,876,641 7,065,488 107 131 139 132 133 141 101 1920. April Mav June. . Julv August September . October November WESTBOUND. Total freight. Relative. Short tons. Relative. Short tons. Relative. Short tons. 498 505 466,135 161 150 1,848,511 307,241 96 16 2,650,799 932,615 107 37 9,713,919 5,134,496 10,000 202 000 271,020 300 150 341,690 177 123 376,388 329,845 65 87 97 110 57 121 106 50,831 531,375 966,382 1,294,162 2,533,614 2,040 774 2,493,907 1,869,723 28 50 67 132 106 130 97 82,483 937,374 1,493,935 1,827,978 3,147,219 2,458,002 3,123,658 2,354,092 38 60 73 127 99 126 95 537,209 8,421,210 10,647,819 11,577,679 12,425,290 11,748,131 13,000,299 9,419,580 Short tons. October, 1919 . . November, 1919 Total. Soft coal. Hard coal. 1920. April Mav... June July. August September October... November . GOLD SETTLEMENT FUND. Seasonal shifting of funds for crop-moving purposes, accompanied by an increased volume of rediscount transactions between Federal Reserve Banks, also the increased volume of fiscal operations of the Government which were particularly heavy during September, are reflected in record totals for both clearings and transfers through the gold settlement fund during the three-month period ending November 18, 1920. Total clearings through the fund aggregated $21,821,566,124, compared with $21,035,992,496 shown for the preceding threemonth period, while transfers increased from $1,688,008,156 to $2,487,123,679. Government operations, affecting both transfers and clearings, included the collection of about 716 millions of income and excess profits taxes on September 15, the redemption during the three-month period of nearly 900 millions of maturing loan d tax certificates and the issuance of over 800 Relative. 102 54 89 112 122 131 137 99 millions of new certificates of indebtedness, also semiannual interest payments on September 15, October 15, and November 15 on the third, fourth, and second Liberty loans aggregating approximately 290 millions. The exceptionally heavy transfers during the week ending on September 23 were composed in part of the transfers of $140,000,000 to the Federal Reserve Bank of New York for Government account. Sales on September 9 of $45,000,000 of certificates of indebtedness by the Federal Reserve Bank of New York to the Boston and Cleveland banks and the increasing use of the clearing and collection facilities of the Federal Reserve Banks also account in some measure for the increase in transfers and in clearings through the fund during the period under review. The Federal Reserve Bank of New York again shows a large net loss of gold through the fund, amounting during the period to $132,557,621, its net gain through transfers of 1340 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. $314,099,077 being more than offset by a net Amounts of clearings and transfers through the gold settlement by Federal Reserve Banks, from Aug. 20, 1920, to loss through settlements of $446,656,697. fund, Nov. 18, 1920, both inclusive. Large net losses are also shown for the Boston and Chicago banks, while the Federal Keserve Transfers. Total clearings. Banks of Cleveland and San Francisco show particularly heavy gains, the gain by the latter of— bank being due largely to the transfer of gold to Settlements $139,172,021 50 $1,617. 170,660.73 Aug. 20-26 205,860,624.68 1,564j 298,615.00 Aug. 27-Sept. 2.. meet withdrawals for export to the Far East. 236,973,073.86 1,371, 559,276.44 Sept. 3-9 During the three months under review the 133;588,899.27 084,253.26 Sept. 10-16 1,773, 324,162,871.32 751,667.67 Sept. 17-23 banks deposited $192,145,835, net, of gold in 174,048,789.47 035,125. 67 Sept. 24-30 178,958,431.61 Oct. 1-7 ,712, 016,971.41 the fund and transferred $153,778,000 to the 126, 682,837.83 Oct. 8-14 ,574. 179,059.27 Federal Reserve Agents' 7 fund. As a result 195,392,529.90 Oct. 15-21 2 076' 163,301.65 191,888,532.04 Oct. 22-28 1,798! 435,287.23 the balance in the banks fund increased by 213,869,197. 63 Oct. 29-Nov. 4 . . 1,503! 858,465.19 213,370,408.98 Nov. 5-11 1,503! 182,679. 86 $38,367,835, from $366,775,601 to $405,143,436. 156,155,460.68 Nov. 12-18 1,743!,830,760.86 The balance in the agents' fund increased from 2,487,123,678.77 21,821,566,124.24 Total $792,184,860 to $807,262,893, net transfers Previously reported for 1920 4,126,662,247.70 54,069,502,103.79 6,613,785,926.47 75,891,068,228.03 since Jan. 1, 1920 from the banks amounting to $153,778,000, Total 7,930,857,773.95 66,053,394,214.47 Total for 1919 being largely offset by net gold withdrawals Total for 1918 4,812,105,000.00 45,439,487,000.00 2,835,504,000.00 24,319,200,000.00 aggregating $138,699,968. At the close of the Total for 1917 period under review, November 18, 1920, the aggregate balance in the two funds stood at Clearings and transfers. $1,212,406,328, an increase of $53,445,868 over Total for 1920 to date $82,504,854,154.50 73,984,251,988.42 the combined balance shown three months Total for 1919 Total for 1918 50,251,592,000.00 earlier. Total for 1917 27,154,704,000.00 for 1916 5,533,966,000.00 Following are figures showing operations Total Total for 1915 1,052,649,000.00 through the two funds during the period from Total clearings and transfers from May 20,1915, August 20 to November 18, 1920, inclusive. to Nov. 18, 1920 240,482,017,142.92 Changes in ownership of gold. Total to Aug. 20,1920. Federal Reserve Bank. Decrease. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas.. . San Francisco Total Increase. From Aug. 20,1920, to Nov. 18,1920, inclusive. Balance to credit Aug. 19. 1920, plus n e t deposits of gold since t h a t date. $67,901,539.05 $31,560,212.12 211,760,607.70 80,835,442. 59 35,809,032. 09 217,249,219.11 27,767,900.67 11,948,511.93 12,951,912.96 39,666,443.64 14,230,401.83 35,700,078.39 85,565,027.02 64,574,511.71 * 827, 525. 40 11,132,158.18 6,161,321.94 *29,*i66,'658.*5i" 23,010,564.32 24,017,252.42 4,780,886. 34 343,283,556.50 129,166,102.46 $903,205,055.67 Balance Nov. 18,1920. $18,732,842.95 79,202,986. 51 44,593,484. 55 77,884,846.45 14,232,433.78 3,5*80,444. 08 58,795,286. 27 13,567,991.70 9,169,679. 54 25,496,307.95 4,123,500.44 55,763,631.25 Decrease. Total changes from May 21,1915, to Nov. 19, 1920. Decrease. Increase. $12,827,369.17 132,557,621.19 Increase. $55,074,169.88 $1,035,762,676.86 $8,'784," 452'46' 50,116,945.78 1,280,520.82 7,810,845.91 "*89,"6i9,"895.'65 267,366,164.89 13,229,032.75 47,477,289.55 8,930,337.64 78,970,028.81 "26," 769,'740* 75" 14,395,517.10 3,008,357.60 2,485,743. 63 8,"i23,"806.*58" 84,929,733.71 31,646,402.14 23,359,866. 52 428,213,290.21 914,337,213.85 914,337,213.85 405,143,435.47 405,143,435.47 172,812,117.01 172,812,117.01 1,043,886,477.44 1,043,886,477.44 '"'657,'385." 90" 1 Excess of withdrawals over balance Aug. 19,1920, and deposits since that date. DECEMBER, 1341 FEDERAL RESERVE BULLETIN. 1920. Combined statement from Aug. 20, 1920, to Nov. 18, 1920, both inclusive. GOLD SETTLEMENT FUND. Balance last statement, Aggregate withdrawals and transfers to agent's fund. Aug. 19, 1920. Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City.. Dallas San Francisco. $28,564,594.62 35,349;353.45 46,462,549.59 65,972,959.32 18,798,108.05 4,600,948-57 81,232,325.52 8,124,694.10 5,991,071.94 25,678,029.93 5,109,786.34 40,891,180.04 $2,004 382.50 $10,000,000.00 $67,004,382.50 $70,000, 000.00 24,189,945.75 172,601,200.00 54,189,945-75 230,601',200.00 2,691, 217. 50 32,037,700-00 55,691,217-50 45,037, 700.00 19,867, 188. 65 3,662,130-00 41,867,188.65 3,662, 130.00 1,927,194. 58 11,581,000.00 17,427,195- 09 11,581,000.00 787,300. 40 24,155,950.00 34,987,300.40 26,155, 950.00 1,901,298.50 26,234,000-00 21,901,298.50 26,234! 000.00 9,554, 019. 50 6,001,800.00 17,854,019.50 8,90i;800-00 2,446! 750.00 867,000.00 2,896,750,00 3,067 000.00 1,882! 710. 61 7,215! 245.00 7,215,245 00 9,882,710.61 2,114; 440.00 9,114,440 00 8,785,540.00 8,785' 540.00 73,129; !.5O 31,500,000.00 118,129,282.50 48,072; 000.00 Total... 366,775,601.47 142,495,730.49 Gold deposits. 334,641,565-00 450,945,731.00 489,313,565.00 Settlements from Aug. 20,1920, to Nov. 18,1920, both inclusive. Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas C i t y . . . Dallas San Francisco.. Total. $446,656,697.6 19,442,253.82 98,994,539.24 75,143,130.62 37,746,895.00 4,846,640.42 5,545,945.16 688,376,101.95 Total debits. Total credits. Debits. $388, 291,931.38 503, 937,643.46 102, 854,347.31 358, 686,270.42 272, 000,000.00 149, 364,624.43 60, 000,745- 67 128, 498,966.50 111, 000,000.00 184. 233,335.20 210, 564,601.90 17, 691,212.50 2,487,123,678.77 2,487,123,678-77 Net credits. $1,657, 345,517.24 6,044 866,168.99 2,066 652,647.99 l,87i; 811,751.05 1,752, 474,988.02 773, 216,033-02 180,214.59 2, 1,607; 908,811.90 506, 093,231.60 1,222, 629, 413.17 790, 602,572.23 721, 784,774.44 $1,833, 706, 229.38 $176,360,712.14 5,598, 209, 471.30 62,843,393-64 2,129; 496,041.63 2,207. 758,916.65 335,947,165-60 1,733; 032,734.20 674, 221,493.78 2,834, 459,440.50 28,279,225-91 1,532, 765,681. 28 468. 346,336.60 1,217; 782, 772.75 785, 056,627.07 806! 730,379.10 84,945,604-66 21,821,566,124.24 21,821,566,124.24 :, 376,101.95 Credits. $577,480, 012.69 189,838! 566.96 156,913; 288. 49 644,516,490- 24 251,277, 225.36 42,559,239.28 115,049,712.33 38,960,318. 78 70,244, 747.40 176,900! 951.15 205,676! 042.64 17,707; 083- 45 Balance in fund at close of business Nov. 18,1920. Federal Reserve Bank of— Net debits. Transfers. Aggregate deposits and transfers from agent's fund. Gold withdrawals. Federal Reserve Bank of— Summary of changes in owner ship of gold by banks througtransfers and settlements. Decrease. 842.95 986.51 484.55 846.45 433.78 444.08 .27 991.70 679. 54 Increase. $12,827,369.17 132,557,621.19 $8,784,452.46 50,116,945.78 1,280,520.82 7,810,845.91 26,769,740.75 14,395,517.10 3,008,357-60 2,485,743-63 307.95 500.44 631.25 ""657,'385." 90' 405,143,435.47 172,812,117-01 84,929,733.71 172,812,117.01 F E D E R A L RESERVE AGENTS' FUND. Deposits through transfers from bank. Total withdrawals. Total deposits. Balance at close of business Nov. 18,1920. 16,572,000 $65,000, 000.00 30,000, 000.00 53,000, 000.00 22,000, 000.00 15,500, 000.51 34,200, 000.00 20,000! 000.00 000.00 450, 000.00 8,000, 000.00 7,000! 000.00 45,000! 000.00 $87,000,000 $80,000,000.00 68,000,000 30,000,000.00 43,000,000 53,000,000.00 12,000,000 22,000,000.00 24,000,000 27,000,033.00 20,700,000 34,200,000.00 41,000,000 55,000,000.00 26,900,000 29,800,000.00 5,200,000 450,000.00 14,000,000 15,000,000.00 12,000,000 15,000,000.00 37,572,000 45,000,000.00 $105,000,000 25,000,000 101,389,260 110,000,000 45,500,033 57,000,000 176,144,500 40,430,600 11,200,000 36,360,000 13,734,000 85,504,500 154,672,000 308,450,000. 51 391,372,000 Withdrawals last Gold Federal Reserve Agent Balance Gold deposits. for transfers statement, at— to bank. Aug. 19,1920. withdrawals. Boston New York.... Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis.. Kansas City.. Dallas San Francisco $112,000,000 63,000,000 91,389,260 100,000,000 42,500,000 43,500,000 162,144,500 37,530,600 15,950,000 35,360,000 10,734,000 78,076,500 $27,000,000 10,000,000 30.000,000 12,000,000 24,000,000 18,700,000 41,000,000 24,000,000 3,000,000 14,000,000 12,000,000 21,000,000 $15,000,000.00 Total... 792,184,860 236,700,000 98,000,032.49 $60,000,000 58,000,000 13,000,000 11,500,032.49 2,000,000 35,000,000.00 21,500,000.00 2,900,000 2,200,000 7,000,000.00 8,000,000.00 406,450,033.00 807,262,893 1342 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. BANK DEBITS DURING OCTOBER-NOVEMBER. Aggregate debits to individual account; as reported by 156 important clearing-house associations, fluctuated between 8,719 millions for the week ending November 3 and 9,983 millions for the week ending November 15, which saw heavy financial operations by the Government in connection with interest payments on the fourth Liberty loan and the issuance and redemption of Treasury certificates. The average of debits for the five weeks ending November 24 was 9,364 millions compared with an average of 9,270 millions for the preceding four weeks. The larger average volume of debits is more than accounted for by an increase in the average for New York City clearing-house banks from 4,616 to 4,730 millions, this increase in New York apparently reflecting chiefly the larger volume of stock exchange transactions during recent weeks. A comparison with average figures for the five corresponding weeks in 1919 shows a reduction for New York City banks of about 1,042 millions, or from 5,772 to 4,730 millions, while for the other reporting centers this year's average of 4,634 millions was only slightly below the average of 4,673 reported for the five-week period of the preceding year. The lower figures for New York City banks are due apparently, to a large extent, to the operation of the Stock Exchange Clearing House which greatly reduced the volume of checks issued in payment for purchases of securities. Debits to individual accounts at clearing-house banks. SUMMARY BY FEDERAL RESERVE DISTRICTS. [In thousands of dollars.] Federal Reserve district. Number of centers included. Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco. Total.... 156 1919 Week ending— 1920 Week ending— Oct. 27. Nov. 3. Nov. 10. Nov. 17. Nov. 24. Oct. 29. Nov. 5. 485,116 4,768,617 445,228 646,322 179,247 233,115 1,121,526 217,919 191,756 319,031 179,318 556,285 499,568 4,458,256 405,990 584,191 183,129 225,258 1,007,391 204,431 171,229 297,134 168,715 513,314 454,290 5,066,558 452,959 593,699 190,478 238,157 1,116,134 219,061 220,219 313,175 173,015 577,448 512,825 5,236,714 449,704 628,331 194,181 237,041 1,175,663 234,073 209,780 333,021 163,257 607,941 437,057 4,878,262 439,987 604,318 174,283 223,719 979,128 206,483 189,823 322,973 161,771 542,619 9,343,480 8,718,606 9,615,193 9,982,531 9,160,423 10,150,421 10,025,484 10,824,090 11,133,748 10,091,038 468,649 535,952 5,847,376 5,571,802 423,328 374,314 533,327 517,268 185,968 192,653 268,223 277,775 1,019,713 1,108,759 219,983 239,161 178,735 192,272 307,840 309,599 174,242 168,585 523,037 537,344 Nov. 12. Nov. 19. Nov. 26. 473,292 6,460,158 455,692 560,503 206,209 257,054 1,070,763 244,640 175,998 298,226 177,112 444,443 600,130 6,174,690 449,653 554,189 223,047 298,236 1,207,125 277,075 187,120 351,607 200,590 610,286 508,324 5,496,580 412,569 551,799 194,969 265,108 1,164,155 240,438 179,535 338,504 188,134 550,923 NOTE.—Figures for the following centers, while shown in the body of statement, are not included in the summary, complete data for these centers not being available each week under review: Manchester, N. H.; Washington, D. C; Huntington, W. Va.; Moline, 111.; Sioux Falls, S. Dak.; Cheyenne, Wyo. DATA FOR EACH REPORTING CENTER. [In thousands of dollars.] Federal Reserve district. Oct. 27. No. 1—Boston: Bangor Boston Fall River Hartford Holyoke Lowell Manchester... New Bedford. New H a v e n . . Portland Providence... Springfield... Waterbury... Worcester.... No. 2—New York: Albany Binghamton.. Buffalo New York Passaic Rochester.... Syracuse 1919 Week ending— 1920 Week ending— 3,874 302,983 7,682 23,422 4,080 5,681 4,474 8,061 21,785 11,341 50,756 16,677 8,100 20,674 20,875 4,160 69,314 4,620,664 5,204 31,622 16,778 Nov. 3. Nov. 10. Nov. 17. Nov. 24 Oct. 29. Nov. 5. Nov. 12. Nov. 19. Nov. 3,879 288,345 9,703 23,239 4,731 6,477 4,694 7,586 19,698 9,876 36,828 18,444 8,125 17,359 4,435 338,499 8,751 26,908 4,341 6,272 6,836 7,468 19,932 9,862 37,743 19,963 8,033 20,618 3,619 282,557 7,091 18,590 4,297 5,239 5,029 6,879 19,081 9,266 38,550 16,348 6,831 18,709 3,154 314,920 10,238 23,135 3,523 5,108 3,312 352,914 16,238 23,861 4,317 6,933 3,157 312,038 11,138 24,160 4,104 5,041 3,531 409,286 13,095 23,030 4,119 6,415 3,128 347,560 14,230 16,790 4,629 9,679 7,761 16,002 7,029 35,338 16,898 6,901 18,642 11,427 18,325 7,876 40,623 23,669 8,146 18,311 7,976 18,146 7,188 38,206 17,216 9,247 15,675 12,002 19,969 8,928 45,136 19,495 9,502 25,622 9,130 16,347 6,828 35,259 17,768 7,722 19,254 25,004 16,336 4,580 4,123 73,480 67,459 4,315,498 4,906,375 5,992 4 867 30,553 32,220 19,420 18,907 19,662 4,218 74,660 5,076,964 5,648 37,077 18,485 16,943 3,991 71,307 4,732,177 5,613 31,972 16,259 20,230 3,556 61,923 5,713,194 5,325 27,859 1, 17,110 3,463 61,499 5,437,575 4,594 32,002 15,559 20,200 4,416 68,634 6,313,998 5,334 30,192 17,384 12,919 4,543 69,232 6,028,439 17,207 3,615 67,359 5,364,902 5,075 22,970 15,452 3,789 316,992 11,293 26,935 4,856 7,041 4,829 10,257 21,603 9,273 38,904 21,475 6,338 20,812 6,692 35,525 17,340 1343 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. Debits to individual accounts at clearing-house banks—Continued. DATA FOR EACH REPORTING CENTER—Continued. [In thousands of dollars.] 1920 Week ending— Federal Reserve districtOct. 27. 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 Greensburg Lexington Oil City Pittsburgh Springfield Toledo Wheeling Youngstown No. 5—Richmond: Baltimore Charleston Charlotte Columbia Huntington Norfolk Raleigh Richmond Washington No. 6—Atlanta: Atlanta Augusta Birmingham Chattanooga Jacksonville Knoxville Macon Mobile Montgomery Nashville New Orleans Pensacola Savannah Tampa Vicksburg No. 7—Chicago: Bay City Bloomington Cedar Rapids Chicago Davenport Decatur Des Moines Detroit Dubuque Flint Fort Wayne Grand Rapids Indianapolis Jackson Kalamazoo Lansing Milwaukee Moline Peoria Rockford Sioux City South Bend Springfield Waterloo No. 8—St. Louis: Evansville Little Rock Louisville Memphis St. Louis Nov. 3. Nov. 10. 1919 Week ending— Nov. 17. Nov. 24. Oct. 29. Nov. 5. Nov. 12. Nov. 19. Nov. 26 3,980 5,200 2,500 4,964 5,912 363,500 4,330 IS,221 12,099 9,540 4,167 6,566 4,249 2,849 4,953 2,738 4,853 5,402 331,198 4,039 13,309 11,717 9,543 3,906 7,068 4,415 3,160 5,816 2,760 5,490 6,005 365,736 4,627 19,133 13,618 10,233 4,568 7,364 4,449 3,104 5,581 3,060 6,040 5,855 367, 877 4,702 13,976 13,817 9,290 4,330 7,441 4,631 3,420 5,517 2,064 5,240 5,077 360,450 3,856 16,544 12,339 9,000 3,795 8,488 4,197 3,456 4,658 4,183 3,164 5,363 348,588 3,580 14,707 10,086 8,408 3,355 10,036 3,744 2,910 3,748 4,190 2,922 4,976 307,602 3,756 10,937 9,938 6,984 3,433 9,488 3,430 4,060 5,453 3,600 3,580 5,599 374,474 4,735 17,125 11,932 7,383 3,879 10,086 3,786 3,145 5,011 4,670 3,616 5,741 370,800 3,791 13,123 11,673 9,713 4,058 10,330 3,982 3,740 4,848 3,610 2,786 5,316 335,399 4,044 17,568 11,101 8,277 3,462 8,614 3,804 19,636 66,271 177,855 29,749 11,182 8,160 7,314 4,594 3,524 258,406 3,657 30,281 10,624 15,069 17,937 62,239 181,622 27,810 11,153 7,489 6,020 5,453 3,400 204,233 3,062 29,002 10,014 14,757 18,543 58,905 161,910 27,828 11,581 8,590 2,669 4,543 4,370 238,803 3,084 24,357 10,508 18,008 18,528 67,668 187,032 29,865 11,724 8,579 5,636 4,893 3,800 225,358 3,264 35,371 10,118 16,495 14,436 64,356 167,691 30,127 10,638 8,531 5,811 3,757 3,182 240,325 3,324 27,957 12,173 12,010 25,034 57,307 154,521 27,228 11,126 6,333 8,431 4,340 2,599 188,666 3,151 24,455 7,665 12,471 25,945 57,155 162,212 27,341 11,746 6,469 3,494 5,165 3,108 164,778 3,956 26,000 8,686 11,213 27,049 60,637 167,761 28,059 12,038 7,126 4,042 4,705 2,246 185,644 3,721 34,969 8,011 14,495 28,193 63,436 177,970 29,594 12,573 7,152 4,660 5,858 2,415 173,325 3,372 24,219 9,283 12,139 27,517 63,094 161,696 26,185 11,415 6,706 3,387 5,447 2,817 194,441 3,025 27,730 5,862 12,477 109,788 6,900 7,037 5,461 6,293 17,702 3,800 28,559 33,366 110,483 6,220 8,206 6,168 5,945 17,044 3,900 31,108 38, 052 108, 690 6,250 8,164 6,915 6,700 19,844 5,000 35,615 37,031 109,056 7,150 13,192 6,004 7,136 19,926 3,890 34,963 39,510 99, 438 6,980 7,139 5,338 7,207 20,068 4,100 31,220 34,697 94,554 12.611 9; 500 11,064 91,308 14,273 8,700 10,255 105,011 13,505 8,300 9,491 119,971 12,070 10,300 9,939 104,006 10,889 S.500 8,853 20,665 4,850 32, 724 25, 482 6,335 36,302 28.997 5, .r00 35, 405 26, 768 4,900 39,099 23,404 5,300 34,017 28,184 8,513 18,521 10.824 12.825 7,561 5,839 7,435 4,125 23,477 80,326 2,023 15,853 5,928 1,681 29,234 9,127 18, 456 11,560 13,826 6,753 5,427 13,947 4,327 20,405 65,123 2,351 16,257 1,585 27,921 8,076 17,478 11,515 12,960 6,779 5,473 6,747 4,095 25,957 85,088 2,306 15,703 6,400 1,660 29,258 8,242 19.125 11,982 13,162 7,371 5,959 7.355 4; 185 24,328 77,378 1,833 18,589 6,633 1,641 26,790 7, 459 17,771 10,784 11,078 8,090 4, 643 6,802 3,846 22,973 77,649 1,839 15,767 6,682 1,548 35,948 12,958 16,124 12,135 12,776 5, 765 9,697 8, 758 6,266 21,600 82,864 2,191 34,398 4,752 1,991 37,928 12,893 15,980 13,166 11,853 6,807 10,186 9,616 6,873 23,379 89,699 2,656 28,804 5,367 2,568 38,685 14,926 14, 827 11,831 10, 454 6,305 8,868 9,783 6,702 21,305 77,962 2,066 25,875 4,605 2,860 38,291 16,115 16;844 14,129 14,887 7,490 10,992 9,525 7,185 30,094 97,918 2,507 24,620 5,231 2,408 36,977 14,398 16,462 11,646 12,889 5,865 8,731 7,833 6,252 24,621 82,955 2,343 26,598 5,605 1,933 3,122 2,278 12,354 739,647 8,508 3,332 19,177 140,494 3,784 6,734 7,098 22,062 34,574 4,127 5,474 5,070 62,574 2,498 9,477 5,644 13,928 5,987 2,990 3,091 2,820 2,479 9,549 648,623 6,887 2,832 14, 792 130,754 3,132 7,201 7,536 23.623 30.624 4,463 5,328 5,995 61,614 1,913 8,194 6,077 13,125 5,970 2,749 3,024 2,863 2,413 12,908 723,849 7,289 3,627 21,568 136,690 4,269 6,677 8,524 22,739 36,961 3,539 5,735 5,519 69,262 2,847 9,593 6,152 13,109 5,145 3,530 4,173 3,395 2,587 9,980 758,503 8,490 3,607 17,990 158,107 2,620 5,745 7,855 21,291 37,721 4,359 5,854 4,670 80,266 2,681 8,907 6,107 14,559 5, 739 3,636 3,675 3,559 1,997 10,277 642,040 6,580 3,360 17,189 118,293 3', 738 5,703 7,891 21,599 33,053 4,209 5, 250 5,969 53,730 2,849 7,330 4,710 12,397 3,949 3,122 3,183 2,915 2,691 8,412 677, (46 7,628 3,278 20,726 118,97b 2,275 9,653 7,250 18,720 31,722 4,802 3,897 5,338 55,272 3,668 2,760 9,741 722,789 8,831 3,597 21,633 145,956 2,381 10,943 7,470 17,880 34,374 4,593 4,382 5,732 58, 750 3,318 2,586 10,443 689,392 8,338 3,687 20,943 139,065 2,597 9,228 6,755 20,459 36,392 4,821 4,308 6,177 57,070 4,206 2,858. 12,317 773,120 7,128 3,847 19,882 183,553 2,980 11,931 7,726 18,848 39,032 4,896 4,922 6,223 60,168 3,690 2 268 7,537 828,342 6,217 3,136 19,778 115,932 2, C60 10,086 6,363 16,438 34,870 5,208 4,462 6,334 53,880 8,995 5,038 12,805 4,725 3,367 3,583 10,120 5,947 13,746 4,197 5, 832 3,437 11,857 5,655 15,459 3,981 4,952 3,280 10,473 5,466 13,829 3,519 6,870 3,331 8,816 5,860 10,203 3,139 5,043 3,893 5,515 11,296 25,743 31,628 143,737 5,140 12,071 26,378 29,113 131,729 5,475 8,474 26,557 32,868 145,687 5,681 12,570 29,605 33,021 153,196 4,674 12,038 22,910 30,016 136,845 4,053 9,897 30,651 40,280 135,102 4,416 10,335 34,861 43,558 145,991 b, 745 10,008 36,888 39,505 152,494 5,626 11,734 38,625 53,091 168,099 4,409 10,406 28,432 44,478 152,713 1344 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. Debits to individual accounts at clearing-house banks—Continued. DATA FOR EACH REPORTING CENTER—Continued. [In thousands of dollars.] 1920 Week ending— 1919 Week ending— Federal Reserve district. Oct. 27. No. 9—Minneapolis: Aberdeen Billings Duluth Fargo Grand Forks Great Falls Helena Minneapolis St. Paul Sioux Falls Superior Winona No. 10—Kansas City: Atchison Bartlesville Cheyenne Colorado Springs— Denver Joplin Kansas City, Kans. Kansas City, Mo.... Muskogee 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: Berkeley Boise Fresno Long Beach Los Angeles Oakland Ogden Pasadena Portland Reno Sacramento Salt Lake City San Diego San Francisco San Jose Seattle Spokane Stockton Tacoma Yakima Nov. 3. Nov. 10. Nov. 17. Nov. 24. Oct. 29. Nov. 5. Nov. 12. Nov. 19. Nov. 26, 1,824 2,608 38,656 3,675 1,727 2,714 2,162 95,917 38,436 5,600 2,770 1,267 1,732 1,629 35,536 3,844 1,873 2,528 2,674 86,458 31y,402 5j, 200 2,463 1,090 2,275 3,010 44,297 3,868 2,158 3,792 3,279 112,360 41,155 5,400 2,565 1,460 1,911 3,262 39,010 3,572 1,993 3,257 2,614 105,547 44,751 6,400 2,326 1,537 1,319 2,961 36,931 3,028 1,797 3,148 2,639 99,482 35;, 113 5,000 2,253 1,152 1,723 2,285 20,560 7,654 1,989 2,197 2,531 101,836 34,743 2,142 2,582 27,628 9,515 2,973 2,611 2,737 94,816 43,611 1,515 2,710 21,185 8,765 2,003 2,943 3,009 92,179 38,504 2,880 19,618 9,167 2,275 3,183 3,014 101,698 41,820 1,420 2,787 16,271 2,796 1,931 3,542 2,378 101,181 44,137 1,985 1,232 2,353 1,304 1,980 1,205 2,036 441 1,844 1,248 439 3,743 1,915 2,760 55,471 2,954 4,189 88,324 5,772 29,715 56,572 4,726 18,892 3,763 29,829 11,882 342 3,959 2,343 2,750 49,502 2,890 4,017 388 3,930 1,979 3,110 51,149 2,493 4,497 99,403 7,989 26,269 50,665 16,814 17,012 3,635 32,587 13,080 384 3,695 2,050 4,618 53,006 3,166 4,131 92,910 5,227 32,425 52,646 17,809 16,176 2,947 24,486 9,347 499 548 3,727 477 2,912 532 3,474 88,597 5,252 23,642 49,861 3,992 19,624 3,919 26,932 11,855 426 3,106 2,216 3,305 51,130 3,207 4,528 94,385 4,924 26,439 54,037 6,760 19,215 4,311 26,841 10,561 3,023 38,212 2,566 2,955 94,798 6,247 18,225 74,374 2,866 18,408 2,882 38,438 3,817 3,346 91,362 5,651 24,610 12,617 3,336 41,715 3,175 2,988 101,150 7,082 18,154 61,020 3,718 19,414 6,467 24,896 12,209 7,127 18,951 57,788 4,593 22,116 6,019 13,677 24,721 3,602 55,115 3,831 3,184 107,138 7,303 19,798 62,710 17,278 22,097 6,163 13,611 25,771 580 2,478 2,399 3,061 52,285 3,258 3,301 108,313 7,561 19,917 59,739 8,738 21,300 5,779 28,715 11,080 1,688 4,275 4,071 48,061 9,811 28,461 13,821 45,032 8,018 7,710 1,878 1,485 4,977 1,898 4,445 4,410 47,486 9,631 22,397 12,577 43,081 6,797 8,426 1,846 1,501 4,220 2,310 3,595 4,503 46,832 10,440 26,986 12,688 39,143 9,037 9,035 2,481 1,887 4,078 2,218 4,308 4,112 44,981 9,626 26,860 12,539 33,902 7,988 8,295 2,714 1,464 4,250 2,011 3,723 4,520 45,201 10,228 25,181 12,711 34,426 8,021 7,933 1,928 1,633 4,235 1,798 4,098 3,788 49,275 7,362 24,808 12,793 45,775 7,622 10,442 1,548 1,287 3,646 1,967 4,402 4,800 49,329 7,551 24,984 14,243 37,863 7,908 7,915 1,665 983 4,975 2,035 4,818 4,330 52,367 10,155 27,017 12,930 39,244 8,596 8,948 1,688 1,424 3,560 2,225 4.922 4,248 59,849 9,686 29,281 14,509 46,257 9,980 10,506 2,273 725 6,129 1,952 5,158 4,738 54,297 9,428 31,467 12,269 41,944 9,275 9,979 1,746 1,569 4,312 2,449 2,753 18,672 5,092 102,800 19,187 3,912 . 5,026 42,007 2,868 17,519 18,565 7,675 224,000 7,533 40,849 14,766 5,459 11,067 4,086 2,111 2,678 16,432 3,940 3,358 17,448 5,547 103,365 21,406 4,085 6,018 48,767 2,782 21,030 18,340 2,946 3,323 20,795 2,718 3,091 15,559 4,783 104,200 20,115 6,6.57 5,890 41,828 3,421 14,329 18,508 7,845 221,472 4,669 37,138 2,245 4,250 11,780 2,799 3,854 14,354 4,119 85,274 19,130 4,205 4,531 47,495 3,497 15,990 18,253 5,790 210,702 8,421 52,737 14,697 2,696 4,068 11,299 3,599 72,933 17,569 4,005 3,826 38,637 3,254 14,452 18,093 4,511 162,639 6,982 44,940 12,162 5,380 9,402 3,996 2,945 5,537 15,511 4,784 105,130 20,691 6,717 5,477 59,730 3,154 19,828 22,611 6,579 223,178 9,277 58,408 14,832 2,247 3,452 11,545 4,311 95,478 16,954 6,206 4,574 49,042 3,120 17,208 22,036 4,571 215,540 6,633 56,911 11,818 5,092 10,123 4,062 5,344 93,219 19,476 6,001 4,324 49,143 2,253 16,221 17,153 7,128 194,634 7,008 39,832 11,452 4,971 10,397 3,537 8,905 231,066 6,957 39,608 14,223 4,288 12,142 4,173 6,332 112,998 20,584 6,147 5,540 49,113 3,344 23,047 19,700 9,382 238,683 7,545 41,631 14,725 7,107 11,316 3,683 13,275 4,221 9,634 3,266 3,414 81,957 16,744 3,754 3,692 52,970 3,469 13,077 16,649 4,967 208,603 7,653 49,844 13,229 9,052 11,590 4,098 6,514 10,514 4,468 7,846 13,161 4,890 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. 1345 DISCOUNT AND OPEN-MARKET OPERATIONS OF THE FEDERAL RESERVE BANKS DURING OCTOBER, 1920. Discount and open-market operations of the Federal Reserve Banks during October and September, 1920 and 1919, are shown in summary form for the system as a whole in the table below. Detailed figures for each Federal Reserve Bank for the most recent month are given on pages 1347-1349: Summary of discount and open-market operations of Federal Reserve Banks in October and September, 1920 and 1919. [In thousands of dollars.] 1920 1919 Octo- j Sep- I OctoSepber. tember. j ber. j tember. Total discount and open-market purchases Discounts—total Secured by Government war obligations Otherwise secured and unsecured—total Commercial n. e. s., agricultural and live-stock paper.. Trade acceptances Bankers' acceptances Average maturity (in days) Average rate (365-day basis), per cent Open-market operations: Bills purchased—total Bankers' acceptances—total.. I n the domestic trade I n the foreign trade Trade acceptances—total I n the domestic trade In the foreign trade Dollar exchange Average maturity (in days) — Average rate (365-day basis), per cent United States securities purchased: Bonds Certificates of indebtedness 8,013,263 8,446,264 8,468,032 8,801,291 7,548,456 7,298,9698,060,3186,726,155 4,305,307 4,164,1157,348,942 6,238,286 3,243,149 3,134,854 711,376 487,869 3,213,736 3,109,778 694,040 476,862 , 19,157 16,064 10,619 17,131 10,256 1,272 388 7,945 13.26 9.54 9.44 14.27 6.40 4.19 4.18 6.33J 281,832 257,988; 335,262 205,048 269,284 249,268 329,864 201,962 66,244 52,961 81,819 48,557 203,040 196,307 248,045 153,405 1,670 2,130 4,989 2,773 735 203 1,938 479 9351 1,927 3,051 2,294 10,871 6,590 409 313 35.51 41.71) 48.36 46.15 6.05 6.04 182,927. 889,307 4.26 4.25 72,4521,870,088 Discount operations of the Federal Reserve Banks in October aggregated 7,548 millions, or 249 millions more than the month before, though 512 millions less than in October of the preceding year. The figures in the table are exclusive of bills discounted for other Federal Reserve Banks, which totaled 393 millions during October and 440 millions during September of this year, and 127 millions during October and 189 millions during September, 1919. Discounts of paper secured by Government war obligations, including Treasury certificates, were larger by 141 millions in October than in September, while other discounts increased by 108 millions. Trade acceptances discounted in October totaled 19 millions,7 as against 17 millions in September; bankers acceptances aggregated 10 millions in October, compared with 8 millions in September; and all other discounts, including commercial, agricultural, and live- stock paper, aggregated 3,213 millions, as against 3,110 millions the month before, and 694 millions in October of last year. The average maturity of all paper discounted in October figures out at 13.26 days after discount by the Federal Reserve Banks, compared with 14.27 days in September and 9.54 days in October of the past year. The increase in average maturity, as compared with 1919, is due mainly to the fact that a larger proportion of the paper discounted by the Reserve Banks for member banks consists of redispounted customers7 paper of varying ma-7 turities, the proportion of member banks 15-day collateral notes being smaller than a year ago. The average rate of discount was 6.40 per cent, marking a slight increase from the September average of 6.33 per cent. In 1919 the average rate for October was 4.19 per cent, and for September 4.18 per cent Total bills purchased in October were 24 millions above the 7 September amount, the volume of bankers acceptances purchased being about 20 millions larger and that of dollar exchange about 4 millions larger than the month before, while trade acceptances de-7 clined somewhat in amount. Of the bankers acceptances purchased 66 millions were in the domestic trade and 203 millions in the foreign trade. The average maturity of all paper purchased by Federal Reserve Banks in October was 35.51 days, compared with 41.71 days in September and 48.36 days in October, 1919. Average maturity of purchased paper varied decidedly for the different Federal Reserve Banks: At the New York and Boston banks, where a large proportion of the acceptances are held under 15-day repurchase agreements, the maturities averaged 24.03 days, while at the other Reserve Banks average maturities were much higher, the highest averages being 69.79 days reported for the Minneapolis bank and 67.51 days for the Philadelphia bank. The rate charged on purchased paper varied from 5 | to 7J per cent, the average for the month being 6.05 per cent, compared with 4.26 per cent for October of last year. During the month under review, 33 banks were added to the membership of the system, the total number of member banks increasing from 9,525 on the last day of September to 9,558 on the last day of October, while the number of member banks accommodated through discount of paper increased from 4,758 in September to 4,952 in October. The number of member banks in each district at the end 1346 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. of October and of September and the number Federal Reserve Bank holdings of disand percentage accommodated during each of counted and purchased paper, by classes, at the two months are shown in the following the end of October and September, 1920 and statement: 1919, are shown in detail on page 1349, and are summarized in the following table: Member banks Member banks accommodated. in district. Federal Reserve Bank. October. Oct. 31. Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas C i t y . . . Dallas , San Francisco.. 434 780 697 869 610 449 1,404 569 997 1,084 844 821 Total 434 776 694 866 610 446 1,404 1,080 841 817 217 306 310 248 340 323 848 310 508 614 542 386 9,558 | 9,525 j 4,952 SepSepOc- temtem- tober. ber. ber. 219 323 348 258 356 310 772 303 410 547 521 391 50.0 39.2 44.5 28.5 55.7 71.9 60.3 54.5 51.0 56.6 64.2 47.0 50.5 42.9 50.1 29.8 58.4 69.5 55.0 53.2 41.5 50.6 61.9 47.9 4,758 I 51.8 j 50.0 An additional statement shows the growth in membership of the system from month to month from October, 1919, to October, 1920, the number of member banks accommodated during each month, and the proportion of member banks receiving accommodation. It will be seen that during the year 681 members were added to the system, and that the number of banks accommodated in October of the current year was the largest on record, 4,952, or 51.8 per cent of the total number of banks in the system. The proportions of banks accommodated was considerably higher for the southern and middle western Reserve Banks than for those in the east and the far west. The lowest percentage, 28.5 per cent, is reported for the Cleveland bank, and the highest, 71.9 per cent, for the Atlanta bank. Year and month. 1919. October November December January February March April May June July August September October 1920. Member banks acNumber of commodated durmember ing month. banks at end of month. Number. Per cent 8,977 9,009 9,069 3,839 3,649 3,659 42.8 40.5 40.3 9,112 9,161 9,227 9,271 9,329 9,395 9,458 9,487 9,525 9,558 3,461 3,338 3,670 4,175 4,645 4,948 4,858 4,780 4,758 4,952 38.0 36.4 39.8 45.0 49.8 52.7 51.4 50.4 50.0 51.8 Summary of discounted and purchased paper held by the Federal Reserve Banks at the end of October and of September, 1920 and 1919} [In thousands of dollars.] 1920, end of— October. Discounted paper, total Secured by Government war obligations Otherwise secured and unsecured, total Commercial paper, n. e. s. Agricultural paper Live-stock paper Trade acceptances Bankers' acceptances Purchased paper, total Bankers' acceptances, total... Member banks Nonmember trust companies Nonmember State banks. Private bankers Foreign bank branches and agencies Trade acceptances, total Domestic Foreign September. 1919, end of— October. September. 2,801,297 2,704,464 2,128,547 1,882,282 1,203,905 1,220,423 1,681,082 1,572,503 1,597, 3921,484,041 1,322, 0491L, 229,465 131,528 120,998 109,121 103,426 23,155 22,080 8,072 11,539 299,487 301,211 298,223 296,070 194,908 200,976 447,465 374,758 28,447 27,028 16,261 971 394,355 387,617 271,701 309,779 238,134 32,932 27,273 10,961 479 300,129 297,153 208,784 1, 37,642 33,787 3,009 38,939 29,788 8,021 36,707 42,677 8,255 24,821 33,420 27,864 3,417 644 2,773 25,511 2,988 207 2,781 28,511 6,738 1,740 21,873 2,976 591 2,385 1 For discounted paper the figures are for ths List Friday of e.ich month; for purchased paper for the last day of each month. Among the principal changes between September and October in holdings of discounted paper the following are to be noted: A decrease of 17 millions in paper secured by Government war obligations, accompanied by an increase of 113 millions in paper not so secured. Holdings of agricultural paper were about 11 millions larger and those of live-stock paper about 6 millions larger than the month before, increases of 1 million in trade acceptances on hand and of 3 millions in bankers' acceptances held also being shown. The increase m commercial paper held was 93 millions for the month. Holdings of purchased paper w^ere 299 millions at the end of October, compared with 301 millions at the end of September. A table showing average daily holdings of the principal classes of earning assets and annual rates of return for each month from October, 1919, to October, 1920, is given below. October figures by Federal Reserve Banks are shown on page 1348. 1347 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. During October, 1919, average daily holdings of discounted bills were 2;073 millions, while during October, 1920, they were 713 millions larger, or 2,786 millions. While there were temporary recessions in January and June, the general upward tendency continued throughout the period under review, in spite of the fact that the average rate of discount rose continuously from 4.15 per cent for October, 1919, to 6.34 per cent for the most recent month. Average holdings of purchased bills, on the other hand, reached a maximum of 576 millions in January of this year and declined steadily since that time, totaling only 304 millions during October. The rate of earnings on purchased paper rose from 4.22 per cent in October, 1919, to 6.07 per cent in July, 1920, and has remained approximately at that level since. No marked fluctuations either in average holdings or in rate of earnings are noted for United States securities. Average daily holdings by Federal Reserve Banks of each class of earning assets, and annual figures, October, 1919, to October, 1920. ! Average daily holdings (in millions of dollars). ! All I classes All classes DisPur- United States of counted! chased securibills. earning bills. ties. assets. Year and month. Pur- United DisStates counted chased securiearning bills. bills. ties. i assets. Of I 1919. October November December 1920. January February.. March April May June July August September. October •3,044 3,158 3,208 3,192 3,256 3,210 3,201 3,234 3,317 3,395 monthly Annual rate of earnings from— I Year and month. rate of earnings; 2,073 2,146 2,157 340 455 550 296 307 327 October November. December.. 2,143 2,302 2,383 2,440 2,538 2,461 2,519 2,605 2,677 2,786 576 547 481 420 416 401 364 326 314 304 325 309 344 332 302 348 318 303 326 305 January February.. March April May June July August September. October 1919. Per cent. 3.95 4.16 4.29 Per cent. 4.15 4.40 4.55 Per cent. 4.22 4.33 4.54 Per cent. 2.18 2.22 2.19 4.46 4.88 5.12 5.23 5.36 5.51 5.71 5.81 5.83 5.94 4.71 5.20 5.49 5.58 5.66 5.89 6.11 6.19 6.22 6.34 4.79 5.06 5.47 5.70 5.77 5.98 6.07 6.07 6.06 6.07 2.18 2.18 2.10 2.10 2.22 2.24 2.15 2.22 2.35 2.20 1920. Total discount and open-market operations of each Federal Reserve Bank during October, 1920. Federal Reserve Bank. Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco. Total Total Total Total October, 1920 October, 1919 10 months ending October 31, 1920 10 months ending October 31,1919 Bills discounted for member banks. Bills bought in open market. $337, 362,021 4,914, 285,965 374, 913,501 170, 536,687 240, 870,499 226, 884,442 487, 434,416 208. 162,884 83: 030,732 163: 968,589 553,296 227^ 453,203 $29,068,813 145,283,478 8,765,355 24,045,906 3,745,000 2,959,767 27,335,649 2,101,938 482,750 2,078,481 1,395,000 34,569,740 7, 548, 456,235 8,060,317,969 67,976,281,169 64,468, 598,764 281,831,877 335,261,712 2,732,695,806 2,083,773,404 1 United States securities pur- 1 chased. Bonds and victory notes. $48,000 48,000 50 •288,600 1,752,025 I n c l u d e s $1,000 of m u n i c i p a l w a r r a n t s . Certificates of indebtedness. Total. October, October, 1920. 1919. $46,817. 500 76,660; 000 23,576, 500 5,000, 000 4,000, 000 1,000, 000 20, 527, 500 408, 500 484, 500 $413,248,334 5,136,229,443 407,303,356 199,582,593 248,615,499 230,844,209 j 535,297,565 210,673,322 83,997,982 169,347, 570 3, 300; 500 114,948,296 263,174,943 1,152,000 182,927,000 ; 8,013,263,112 72,452,500 ! 6,439,443,000 i 77,148,708,575 3,920,914,500 $432,396,299 4,660,916,510 1,155,157,238 337,833,565 325,092,997 216,636,862 455,306,043 223,927,323 112,823,897 172,215,594 138,814,107 236,911,796 8,468,032,231 1 7*6," 475,' 039," 693 1348 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. Average daily amount of earning assets held by each Federal Reserve Bank during October, 1920, earnings fronfeach class of earning assets, and annual rate of earnings on basis of October, 1920, returns. Average daily holdings of— Federal Reserve Bank. Purchased bills. Discounted bills. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas ." San Francisco $172,630,679 950,581,967 174,145,655 218,432,933 110,777,909 128,973,299 468,593,795 117,730,488 85,402,000 110,925,822 77,082,612 170,938,712 2,786,215,871 2,073,415,643 Total, October, 1920 Total, October, 1919 Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas ." San Francisco Purchased I1 United States bills. securities. Discounted bills. $973,684 5,155,359 862,616 1,207,040 547,586 652,721 2,642,512 583,998 485,017 602,077 374,171867,182 Total, October, 1920 Total, October, 1919 $186,562 i 438,215 ! 91,920 : 237,705 • 30,825 11,893 234,166 7,338 ' 7,602 14,261 • 4,469 298,758 14,953,963 7,317,609 1,563,714 1,219,359 Total. $35, 836,064 85! 859,297 714,583 45; 563,154 b, 923,520 2, 376,556 45, 929,718 378,440 l! 351,000 2;', 780,844 896,855 58, 370,812 $24, 098,242 73, 603,300 33, 287,445 24, 244,166 13, 623,832 15,816,612 44, 907,568 18, 487,755 8,613,000 21 790,580 12,269,419 13, 821,531 $232,564,985 1,110,044,564 225,147,683 288,240,253 130,325,261 147,166,467 559,431,081 137,596,683 95,366,000 135,497,246 90,248,886 243,131,055 303,980,843 340,188,783 304,563,450 295,725,153 3,394,760,164 2,709,329,579 n. Earnings from— Federal Reserve Bank. United States securities. Calculated annual rate of earnings from— Total. $42,549 160,468 61,323 42,339 23,201 26,102 79,562 32,967 14,731 39,081 21,708 24,094 $1,202,795 5,754,042 1,015,859 1,487,084 601,612 690,716 2,956,240 524,303 507,350 655,419 400,348 1,190,034 568,125 547,895 17,085,802 9,084;863 Discounted bills. Purchased bills. United States securities. Total. Per cent. Per cent. Per cent. Per cent. 6.15 2.08 6.11 6.66 6.03 2.57 6.12 6.40 6.12 2.17 5.32 5.84 6.14 2.06 6.07 6.51 6.14 2.01 5.45 5.84 6.11 2.01 5.73 6.17 6.02 2.09 6.24 6.66 6.29 2.09 5.36 5.86 6.63 2.01 6.26 6.69 6.06 2.12 5.71 6.41 5.79 2.08 5.24 5.73 6.04 2.06 5.78 5.99 6.34 4.15 6.07 4.22 2.20 2.18 5.94 3.95 Bills discounted during the month of October, 1920, distributed by classes; also average rates and maturities of bills discounted by each Federal Reserve Bank. Federal Reserve Bank. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total, Oct., 1920. Total, Oct., 1919. Customers' paper secured by Government war obligations. Member banks' collateral notes. Secured by Government war obligations. O therwise secured. $10,438,905 67,469,182 31,126,744 5,804,290 3,896,256 8,388,538 9,976,898 6,212,291 2,273,996 5,611,998 1,190,313 3,968,943 $259,865,920 2,468,023,390 221,498,877 114,010,893 199,145,330 .136,955,860 261,382,698 117,052,740 32,944,150 91,874,041 82,721,722 163,472,749 $402,500 1,061,800 676,000 777,822 147,000 2,293,910 1,029,918 1,461,100 799,059 $155,546 3,663,154 351,216 2,220, 426 1,243,726 1,808,182 2,967,859 1,701,243 536,743 913,887 1,110,659 2,484,671 156,358,354 164,222,840 4,148,948,370 7,184,719,069 9,249,109 45,649,017 19,157,312 16,064,284 1 1 Includes $1,172,608 in the foreign trade. Commercial, n. e. s., agricultural and live-stock paper. Total. 1,831,427 $66,901,650 2,369,446,605 121,561,664 47,096,078 35,523,387 78,895,530 212,107,694 82,118,910 44,979,934 63,889,385 27,069,502 54,896,354 $337,362,021 4,914,285,965 374,913,501 170,536,687 240,870,499 226,884,442 487,434,416 208,162,884 83,030,732 163,968,589 113,553,296 227,453,203 12.37 6.95 15.82 19.43 15.42 25.20 38.42 26.40 45.80 39.87 28.59 23-38 Per cent. 6.44 6.47 5.59 5.88 5.98 6.22 6.72 6.10 6.81 7.13 5.91 5-98 10,256,397 1,271,426 3,204,486,693 648,391,333 7,548,456,235 8,060,317,969 13.26 9.54 6.40 4.19 Trade Bankers' acceptances. acceptances. 2 $5,683,634 375,000 1,002,500 160,332 221,445 930,700 1,999 49,360 2 Includes $15,0C0 in dollar exchange bills. Average Average rate maturity (365-day in days. basis.) DECEMBER, 1349 FEDERAL RESERVE BULLETIN. 1920. Bankers' and trade acceptances in the foreign and domestic trade and dollar exchange bills purchased during October, 1920, also average rates and maturities of total bills purchased by each Federal Reserve Bank. Bankers' acceptances. Trade acceptances. Dollar exchange bills. Federal Reserve Bank. Foreign. Domestic. Boston New York Philadelphia Cleveland . Richmond Atlanta Chicago.. St. Louis Minneapolis Kansas City Dallas San Francisco Total. $9,609,611 $19,109,202 29,027,244 107,592,943 1,182,987 6,607,368 7,321,359 16,074,547 538,800 3,206,200 938 348 2,021,419 7,588,945 18,956,704 140,000 1,961,938 200,000 282,750 37,500 2,040,981 1,395,000 6,359,171 27,091,002 Domestic. $28,718,813 136,620,187 7,790,355 23,395,908 3,745,000 2,959,767 26,545,649 2,101,938 482,750 2,078,481 1,395,000 33,450,173 Total. Average maturity in days. Average rate (365 day basis). 24.03 24.03 67.51 49.76 50.77 45.69 60.12 42.00 69.79 60.17 37.82 50.96 Per cent. 6.22 5.96 6.10 6.05 6.0g 6.0 8 6.11 6.16 6.08 6.59 6.08 6.05 35.51 48.36 6,05 4.26 215,851 215,851 $350 000 &2P OfiR 812 7,409,433 145,283,478 975,000 8, 765,355 450,000 24,045,906 3,745,000 2,959,767 790,000 27,335,649 2,101,938 482,750 2,078,481 1,395,000 903,716 34,569,740 934,908 3,051,436 1,669,709 4,988,990 10,878,149 281,831,877 408,637 335,261,712 $534,801 $719,057 $1,253,858 200,000 200,000 734,801 1,937,554 Total, Oct., 1920.. 66,243,653 203,040,366 269,284,019 Total, Oct., 1919.. 81,818,557 248,045,528 329, 864,085 Foreign. Total bills purchased. Discounted bills, including member banks' collateral notes, held by each Federal Reserve Bank on the last Friday in October, 1920, distributed by classes. [In thousands of dollars.] Federal Reserve Bank. B oston New York Philadelphia Cleveland . Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas .. San Francisco Agricultural paper. Member banks' collateral notes. Customers' paper seLive-stock cured by Govern- Secured by paper. ment war Govern- Otherwise secured. obligations. ment war obligations. 76 262 715 9 187 17,051 33,768 4,496 16 375 13 365 15,772 20,461 ... Total, 1920 . Total, 1919 131,528 28,447 18,084 140 349 38,532 11,293 6,663 13,559 19,812 10 683 5 006 9,587 3,080 6,085 10 147 205 2,182 3,567 44 661 32,671 14,559 11,119 109,121 27,028 282,733 208,362 77,022 375 598 76,934 51,815 33,693 55,402 125,138 33,245 3 657 24,238 17,130 47,300 921,172 1,472,720 Bankers' acceptances. Trade acceptances. 152 23 3,831 6,435 397 150 556 77 909 133 389 81 2,243 1,808 1,469 4,418 1,587 305 341 255 1,843 757 55 99 4,202 2,241 3,649 18,987 23,155 16,261 11,539 1,159 Commercial paper n. e. s. 95,836 410,934 59,404 154,337 60,070 50,680 279,918 65,606 13,364 33,713 25,900 68,638 191,117 937,223 175,689 221,183 112,535 140,673 463,837 120,654 84,670 115,777 77,638 160,301 1,318,400 355,771 2,801,297 2,128,547 197 394 1,389 448 971 Total. Acceptances purchased by each Federal Reserve Bank and held on Oct. 30, 1920, distributed by classes of accepting institutions. In thousands of dollars.] Trade acceptances. Bankers' acceptances. Federal Reserve Bank. Boston New York Philadplohia Richmond Chicago St. Louis Minneapolis Dallas San Francisco Total: Oct. 30, 1920 Sept. 30,1920 Oct. 31,1919 Oct. 31,1918 Member bank. . . . 28,496 50,384 11,168 20 478 5,' 611 2,294 38,412 1,118 1,398 2,301 1,070 32,178 194,908 200,976 271,701 314,719 Non- • Nonmember member State trust company. Bank. Foreign bank Private branches bank. and agencies. Total. Total. 718 14,039 3 460 6 802 2,23-8 12,380 2 705 6 374 225 3 62i 370 2 066 179 8,757 7,899 10,557 32,055 1 85,790 19,252 1 40 650 ; ! 5,611 2,294 44,591 1,488 i 1,398 2,301 1,070 i 59,570 j 1,869 3,009 8,021 2,949 1 37,767 2 33,662 29, 788 42,677 30,242 27,884 25,511 28,511 14,006 296,070 1 298,223 | 387,617 373,585 125 1,141 199 38,939 36,707 11,669 478 7,846 1,919 6 797 267 £j c s" Foreign. 591 2,166 2,757 53 607 660 2,301 1,070 60,230 644 207 1,740 3,947 2,773 2,781 4,998 5,057 3,417 2,988 6,738 9,004 299,487 301,211 394,355 382,589 1 Includes $2,134,000 acceptances of corporations organized under Edge Act. i Includes $1,233,000 acceptances of corporations organized under Edge Act. Total. 32,055 88,547 19,252 40, 650 5,611 2,294 44,591 1,488 1350 DECEMBER., FEDERAL, RESERVE BULLETIN. 1920. OPERATIONS OF THE FEDERAL RESERVE CLEARING SYSTEM FROM OCT. 16 TO NOV. 15,1920. [Amounts in thousands of dollars.] Items drawn on banks in own district. Federal Reserve Bank or branch. Located in Located outside Federal Reserve Federal Reserve Bank and branch Bank and branch cities. cities. Items drawn on Treasurer of United States. Items forwarded Items forwarded to parent bank to other Federal Reserve Banks and or to branch in same district. branches. Total. Number. Amount. Number. Amount. STumber. .mount Number. Amount. | Number. Amount. Number. Amount. Boston 8 New York Buffalo Philadelphia Cleveland 3 Cincinnati 3 Pittsburgh Richmond 2 2 Baltimore Atlanta 3 Birmingham2 Jacksonville Nashville i 2 New Orleans Chicago Detroit St. Louis Little Rock Louisville Memphis Minneapolis Kansas City2 Denver Oklahoma City Omaha Dallas 2 El Paso 2 Houston 2 2 San Francisco 2 Los Angeles Portland 2 Salt Lake City s . . . Seattle l Spokane 2 Total: 647,437 070,754 169,561 484,216 335,302 165,329 319,888 108,293 205,122 97,267 42,306 33,882 41,809 59,625 723,524 229,059 243,204 42,969 84,618 70,357 288,787 243,518 77,235 50,959 88,202 90,725 32,348 65,20C 117,26/ 178,559 54,576 60,219 60,392 31,675 683,114 ,165,276 116,063 890,335 286,196 161,973 380,898 175,516 195,964 80,800 26,143 20,789 36,876 64,848 769,841 194,812 276,907 30,211 69,613 41,107 181,873 334,896 79,245 74,140 67,227 93,720 12,412 52,792 114,006 102,642 41,914 33,340 45,453 22,748 2,989,541 4,094,586 367,899 1,915,474 1,138,229 772,468 774,327 1,587,107 686,020 312,491 140,237 126,295 199,529 111,921 3,339,276 364,521 1,308,604 291,108 356,264 167,071 1,817,352 1,987,166 350,687 910,696 529,985 1,649,680 127,640 361,461 343,047 716,503 197,856 366,169 210,191 176,865 465,887 322,977 57,337 272,647 193,423 98,358 110,584 307,931 92,677 67,780 13,881 16,337 24,345 16,934 415,178 48,266 105,425 22,373 27,438 15,07? 143,99£ 146,091 31,467 107,784 46,637 316,689 14,072 52,111 37,123 65,898 15,028 43,052 19,529 15,768 193,184 133,086 612,537 ,013,240 174,231 129,103 193.024 837,626 485,535 39,146 264,761 15,846 497,864 59,615 490,825 129,118 304,652 157,432 152,680 23,042 41,294 17,937 38,037 26,230 62,694 27,475 84,299 40,395 ,213,118 306,503 247,195 10,102 391,814 26,913 53,886 7,568 100,438 7,211 2,169 57,813 329,046 116,448 492,949 262,166 113,484 81,266 961,655 181,924 49,482 673,982 116,289 32,773 1,768,537 413,771 86,346 173,104 28,934 18,543 523,320 106,796 20,647 513,318 214,827 26,60£ 176,281 917,591 62,51^ 270,696 60,843 2,95f 440,670 78,44" 12,83! 299,499: 74,23' 15,26s 220,368 40,378 9,31" 137,422 44,183 3.774,400 ,064,580 124,284 6,229,920 15,076 552,536 831 188,764 30,042 3,588,454 63,248 5,916 1,536,779 58,887 996,684 4,430 47,722 6,382 1,141,937 51,399 7,378 1,746,799 55,390 946,532 16,011 30,255 440,013 4,100 14,163 1,270 196,706 10,529 911 170,706 16,416 1,473 257,754 18,900 2,517 190,446 410,852 28,099 4,473,652 35,987 629,567 4,117 154,227 9,482 1,706,035 7,365 1,302 341,442 42,149 3,387 483,031 9,461 1,633 246,889 49,586 3,178| 2,155,725 144,594 11,956 2,375,278 20,161 2,772 448,083 55,795 28,132 13,116 96,659 53,004 22,529 18,264 14,282 28,91C 11,821 2,425 3,362 2,450 1,893 63,698 7,741 3,901 2,055 9,255 1,862 64,829 642,592 35,024 226,352 31,264 21,014 49,617 75,850 119,597 18,749 12,776 9,410 5,450 12,144 43,067 6,452 7,009 2,390 1,485 760 44,937 65,635 19,201 13,769 8,373 42,657 7,364 32,819 4,990 9,261 1,617 20,606 6,543 2,949 Oct. 16 to Nov. 15, 1920. \7,614,184 7., 923,690J30,788,266 4,750,101 2,989,658 414,295 41,392,108 13,088,087 «3,806,922 1,666,552 Sept. 16 to Oct. 15,1920. 7,543,851 8:,213,12130,612,929 5,033,93912,510,644 427,398 40,667,424 13,674,458'*3,784,37851,773,070 Oct. 16 to Nov. 15,1919. 6,196,752 7',, 438,529 22,382,854 5,006,048 2,822,482 973,862 31,402,088 13,418,439 6 3,126,287"1,754,892 Federal Reserve district. Number of member j Number of nonmenib a n k s in district ber banks on par list Nov. 15. Nov. 15. 1920 1919 Boston New York.... Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis.. Kansas City.. Dallas San Francisco 434 782 700 871 611 454 ,404 569 Total... 9,574 1 2 3 4 846 824 430 751 676 841 582 429 1,366 533 915 1,028 757 700 1920 1919 258 323 437 1,077 1,264 412 4,278 2,526 2,925 3,398 1,261 1,029 243 321 411 1,063 450 347 3,522 2,127 1,493 3,038 905 940 19,188 14,860 36,439 9,913 28,756 33,092 9,872 49,253 26,069 5,926 11,894 6,032 10,311 6,125 12,799 28,448 3,411 3,388 15,418 4 825 9,813 12,635 10,228 10,038 52,074 2,450 1,868 1,091 3,649 2,025 1,745 4,668 426 1,119 96,664 43,363 23,926 19,393 55,590 13,056 8,846 44,758 32,399 30,816 8,958 31,875 19,495 24,002 20,316 16,356 8,788 10,303 2,555 2,209 7,967 5,826 5,539 12,573 7,095 764,278 794,991 725,909 297,128 305, «12 331,101 Number of incorporated banks other than mutual savings banks not on par list Nov. 15. 1920 1919 181 27 1,021 1,220 673 529 1,395 262 267 121 1,727 5,515 340 1,206 Number of business days in period, 23. Number of business days in period, 24. Number of business days in period, 26. Includes 7,100 items, amounting to $2,206,000 forwarded direct to member banks in other Federal Reserve districts & Includes 7,078 items, amounting to $2,640,000 forwarded direct to member banks in other Federal Reserve districts." e Includes 5,578 items, amounting to $4,468,000 forwarded direct to member banks in other Federal Reserve districts, NOTE.—Number of business days in period was 25 except as otherwise indicated by notes 1, 2, and 3. DECEMBER, 1920. FEDERAL RESERVE BULLETIN. 1351 CHANGES IN CONDITION OF FEDERAL RESERVE BANKS. For the five weeks between October 22 and November 26 the Federal Reserve Banks report a relatively moderate reduction in their holdings of discounted paper, from 2,749.2 to 2,735.1 millions. After an increase of 77.6 millions during the first two weeks undet review, discounted paper on hand shows a decline of 42 millions for the week ending November 12 and of 111.4 millions during the following week, when Government disbursements were extraordinarily heavy. These disbursements included payment on and after November 15 of the semiannual interest on the second Liberty loan bonds; also the redemption of the capital and interest coupons of about 93.5 millions of loan certificates issued six months previous. On the same date the Government issued a new series of 6-month loan certificates aggregating 232 millions. Payment for this issue by the banks was made chiefly in the customary manner, i. e.; by crediting the Government account, and it was only when the Government began to draw against its bank credits that the latter's borrowings from the Reserve Banks resumed their upward course, as witnessed by an increase of 62 millions during the week ending November 26 in the total of discounted paper held by the Federal Reserve Banks. No appreciable change is shown in the absolute or relative holdings of paper secured by Government war obligations, including Treasury certificates, fluctuations in the holdings of this class of paper coinciding with changes in the aggregate amounts of discounts held, and the ratio of war paper to total discounts on hand during the entire period continuing practically unchanged at slightly over 43 per cent. In the following exhibit is given a summary of the weekly changes in the principal asset and liability items of the Federal Reserve Banks for the five weeks under review: Of the total holdings of paper secured by Government war obligations the largest share, viz, about 53 per cent, is represented by paper secured by Liberty bonds, the percentage varying but little during the period, while the amount held at the close of the period, 630 millions, was about 6 millions less than five weeks before. Paper secured by Victory notes constituted between 27 and 28 per cent of the total of war paper held, the November 26 holdings of 318.2 millions being 4.2 millions below the October 22 total. Federal Reserve Bank holdings of paper secured by Treasury certificates show but little change during the five weeks under review, the total held being in the neighborhood of 244 millions and constituting about 20 per cent of the total amount of war paper held. Considerable increases in the holdings of 15-day paper are shown on November 5 and 26, when the share of the shortest-term paper in the total discounts held came near and exceeded 60 per cent. Changes in the holdings of 30day and 60-day paper were relatively moderate, while a large reduction is shown in the total of 90-day paper held on the last two Fridays, the ratio of this class of paper to total discounts held on November 26 falling below 9 per cent from over 13 per cent five weeks earlier. A steady growth is shown in the amount of 6-month agricultural and live-stock paper held, the November 26 holdings of 51.7 millions showing an increase of 28.7 millions since October 22. Holdings of acceptances purchased in open market declined from 300.7 to 247.7 millions, liquidation being heaviest during the second part of November, when as a result of the decline in call-money rates the investment demand for prime bank acceptances showed a considerable increase. Fluctuations in the totals of Treasury certificates held reflect largely the Principal asset and liability items of the 12 Federal Reserve amounts of special certificates held by the Banks combined on Fridays, Oct. 22 to Nov. 26, 1920. Reserve Banks to cover advances to the Gov[In millions of dollars.] ernment pending collection of funds from depositary institutions. On October 22 the Oct. Oct. Nov. Nov. Nov. Nov. 22. 29. 5. 12. 19. 26. banks held 10 millions of such certificates; on November 19, following the large disburseReserves: 2,195 Total i 2,157 2,168 2,170 2,180 2,180 Gold | 1,995 2,003 2,002 2,009 2,008 2,024 ments on Government account, the total went Bills discounted: | up to 64 millions held by seven Reserve Banks, Total | 2,749 2,801 2,827 2,785 2,673 2,735 while by the following" Friday the total had Secured b y Gov- | ernment war ob- i been reduced to 21 millions, held by the Phila1,204 1,215 1,181 1,159 ligations 1,199 1,192 Allother 1,550 1,597 1,612 1,604 1,514 1,543 delphia, Cleveland, and San Francisco banks. Bills bought i n open mar298 Considerable reduction in the volume of 300 288 ket 301 275 248 269 268 269 Certificates of indebtedness 281 331 294 Total earning assets I 3,358 3,396 3,422 3,369 3,307 3,304 interbank rediscounting is noted, the total of 19 47 18 Government deposits 15 12 16 paper held under discount for other Reserve Members' reserve deposits. i 1,779 1,806 1,777 1,802 1,782 1,712 Net deposits 1,624 1,675 1,695 1,675 1,633 1,624 Banks showing an almost continuous reducFederal Reserve notes i n tion from 243.1 to 154.1 millions, held by the circulation 3,356 3,351 3,354 3,329 3,307 3,326 Federal Reserve B a n k Boston, Philadelphia, and Cleveland banks. 215 215 215 notes i n circulation 214 214 215 43.1 43.0 43.6 Reserve percentages 43.3 44.1 44.4 The latter bank reports on November 26 a 1352 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. total of 112.1 millions (137.9 millions on Octo- ing the period between a high of 1,694.9 milber 22) held under discount for other Reserve lions on November 5 and a low of 1;623.6 milBanks, compared with 95.8 millions held for lions on November 26. Federal Reserve note its own member banks (79.3 millions on Octo- circulation, after a practically continuous reber 22). Discounts held by the Boston bank duction during the first four weeks, resumed for other Reserve Banks declined during the five its upward trend during the following week, the weeks from 72.9 to 27.2 millions, while dis- November 26 total of 3,325.5 millions indicatcounts held for its own members went up from ing an expansion of 18.2 millions for the week, 101.2 to 144.9 millions. The list of accommo- though a reduction of 30.6 millions for the five dated Reserve Banks includes besides the weeks under review. Considerable reductions New York bank six other Reserve Banks in in outstanding Federal Reserve note circulathe South and Middle West. On November 1 tion are reported by the Boston, Chicago, and the Atlanta bank abolished its graduated dis- Dallas banks, while the New York, Cleveland, count rates and raised its 90-day paper rate to Richmond, and San Francisco banks report on 7 per cent. This change in discount policy is November 26 higher circulation figures than not yet reflected statistically, total discounts, five weeks previous. Federal Reserve bank including paper rediscounted with other Re- note circulation figures show only moderate serve Banks, showing an increase between changes—the November 26 total of 214.6 milOctober 29 and November 26 from 176.8 to lions being 0.8 million larger than the October 177.2 millions, while rediscounts with other 22 total. Gold with foreign agencies shows a Reserve Banks went up in the meantime further reduction, from 80.4 to 70.2 millions, as from 36.1 to 40.2 millions. For the three the result of transfer of earmarked gold from Reserve Banks of St. Louis, Kansas City, and the Bank of England to the Federal Reserve Dallas, which continued to apply graduated Banks. The total of this item includes at presrates during November, a reduction of gross ent also 3.3 millions of gold held earmarked discounts from 429.1 to 378.9 millions, and a for account of the Federal Reserve Banks by the reduction from 115 to 67.9 millions in bills Bank of France. Total gold reserves, as the rediscounted with other Reserve Banks are result of further net gold imports mainly from noted. Great Britain, show a gain from 1,994.6 to Holdings of acceptances purchased from 2,023.9 millions, while total cash reserves show other Reserve Banks decreased from 24.3 to an even larger increase during the period from 14.4 millions, composed of bank acceptances 2,157.3 to 2,195.3 millions. purchased from the New York bank and held The banks' reserve ratio declined from 43.3 by the Boston, Philadelphia, and San Fran- per cent on October 22 to 43 per cent on cisco Reserve Banks. There continue to be November 5. During the following weeks, reported aggregate guarantor's liabilities of largely in consequence of loan liquidation and 16.2 millions on bank acceptances held for the gain in reserves, the ratio shows a gradual account of foreign correspondents. rise to 44.4 per cent, the highest percentage Changes in the several classes of deposits were attained since July 23 and only 1 per cent berelatively moderate, with the consequence that low the maximum shown for January 9 of the calculatednet deposits show a fluctuation dur- present year. Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Oct. 29 to Nov. 26, 1920. [In thousands of dollars.] RESOURCES. Phila- Clevephia. land. Boston. Gold and gold certificates: Oct. 29 Nov. 5 Nov. 12 Nov.19 Nov.26 Gold settlement fund—Federal Reserve Board: Oct. 29 Nov.5 Nov. 12 Nov.19 Nov. 26 Gold with foreign agencies: Oct.29. Nov.5. Nov.12 Nov. 19 Nov.26 „ 8,023 8,033 7,993 7,825 7,806 82,470 92,153 86,909 87,038 99,490 1,326 1,308 1,298 1,330 1,308 30,299 55,721 25,467 37,192 54,654 66,250 57,410 60,440 75,969 74,128 53,820 42,29<3 53,744 42,704 46,414 5,468 5,674 5,639 5,424 5,140 27,276 28,315 28,347 27,263 25,638 5,992 6,218 6,180 5,944 5,633. 10,538 10,542 10,256 10,348 10,365 Rich- 2,455 2,465 2,477 2,485 2,496 78,342 28,956 70,126 27,584 85,113 20,981 71,412 18,846 83,221 21,089 6,142 6,373 6,334 6,093 5,774 3,670 3,808 3,785 3,641 3,450 Kansas City. anta. Chicago. 6,434 6,547 6,660 6,735 6,376 24,448 22,635 21, 751 21,912 21,967 2,805 4,781 4,754 3,625 3,577 7,235 7,211 7,238 7,246 7,281 69,2 7,546 62,866 6,037 55,081 4,375 56,096 4,575 53,891 4,692 49,647 12,118 15,540 13,324 12,585 15,028 9,949 10,791 10,061 10,130 8,317 22,622 22,605 20,014 24,610 21,468 8,913 9,249 9,192 8,842 8,380 3,520 3,653 3,631 3,493 3,309 2,022 2,099 2,086 2,006 1,901 3,595 3,731 3,708 3,567 3,380 At- 2,696 2,798 2,781 2,675 2,535 St. MinneLouis. apolis. 686 720 749 766 San j Dallas. FranTotal. Cisco. I 4,975 5,080 5,121 6,153 6,332 13,448 I 13,261 I 14,637 14,820 14,883 3,812 39,583 5,997 48,799 8,371 51,089 44,347 4,417 4,789 27,780 1,947 2,021 2,008 1,932 1,831 3,445 3,575 3,553 3,418 3,239 164,819 174,702 169,814 170,266 182,647 416,163 417,9.84 409,075 400,678 411,227 74,686 77,514 77,244 74,303 70,210 DECEMBER, 1353 FEDERAL RESERVE BULLETIN. 1920. Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Oct. 29 to Nov. 26, [In thousands of dollars.] RESOURCES.—Continued. Phila- Cleve- Richdelphia. land. mond. Atlanta. Boston. New York. 130, 705 128, 237 134, 650 124, 961 123, 356 262, 733 251, 920 250, 751 250, 002 249,032 116, 778 119, 097 117,198 119,666 122, 191 20, 076 21, 883 19, 693 18, 718 19,648 37, 965 37, 955 38, 374 38, 000 38,000 12, 511 13, 356 13, 702 14, 930 9,867 194, 571 219, 548 193, 442 194, 120 210, 604 476, 694 467, 753 464, 821 478,277 486, 288 190, 427 182, 272 192, 122 184, 574 185, 413 252, 340 243, 375 268, 947 263, 606 273, 799 8,604 9,970 10, 606 9,993 8,886 129, 916 131, 070 132, 380 132, 58a 133, 297 717 455 365 501 492 1,980 1,962 1,962 1,981 2, 051 203, 175 229, 518 204,048 204, 113 219,490 606, 610 598,823 597,201 610,857 619,585 191, 144 182, 727 192, 487 185, 075 185, 90.1 254, 320 245, 337 270, 909 265, 587 275, 850 95, 106 84, 322 86, 277 78, 219 78, 288 515,947 513, 943 482, 183 469 383 465,027 115, 466 114, 290 113, 915 118, 967 121, 613 63, 108 71,187 72, 874 66, 575 95, 567 96 Oil 86,397 96, 880 89 712 93, 877 421 276 429 620 469 356 426 546 436,760 60, 223 67,231 60, 537 49 071 50 008 31, 985 27, 294 30 247 29, 869 23 055 88 546 92,682 91 899 95 322 77 990 555 553 552 552 552 1 462 1 462 1 462 1 467 1 467 5 5 5 5 5 50 50 50 50 50 21 520 21 484 21 692 33 057 24 321 68 247 67 054 68 164 76,129 70 706 30 696 30 508 30 451 44 550 44 285 23 299 23 299 23 299 34 299 23 299 12,262 12,262 12,262 14,262 12,262 15,666 15,666 15,666 15,665 15,667 245 182 220 055 235,653 231 414 220 098 1,095,528 1,104,811 1,113,114 1,068,897 1,052,000 227,071 238,042 229,898 235', 065 234,900 285 282 293,640 269,446 258,862 263,215 131,693 134,593 136,068 133,120 134,673 158,708 157,301 156,353 156,435 155,219 552,166 566,102 544,767 539,456 550,687 140,511 138,872 137,323 140,239 140,234 2 098 2,129 2 203 2,362 2 391 4,102 4,114 4,114 4,116 4,208 657 657 683 683 683 1,178 1,182 1,563 1,565 1,565 1,285 1,326 1,326 1,334 1,334 623 623 623 623 625 2,142 2,142 2,142 2,342 2,342 866 147,075 63,589 160,037 72,179 157,754 61.973 155,641 6b;058 135,447 63,626 74,639 75,414 74,403 83,976 72,955 59,150 62,095 65,689 67,758 67,083 1920—Continued. San Francisco. Louis. Total. Gold with Federal Reservi agents: Oct. 29 Nov.5. Nov. 1 2 . . . Nov. 19. Nov.26 Gold redemption fund: Oct. 29 Nov.5 Nov. 12 Nov. 19 Nov..26... Total gold reserves: Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov. 2 6 . . . Legal-tender noteSj silver, etc.: Oct. 29 Nov.5 Nov.12 Nov. 19 Nov. 26 Total reserves: Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov. 26 Bills discounted: i Secured by Government war obligations— Oct. 2 9 , . . . . Nov.5....... Nov. 1 2 . . . Nov. 1 9 . . . . Nov. 26, All other— Oct. 29 Nov.5 Nov. 12 Nov. 19 Nov. 26 Bills bought in open market: 2 Oct. 29 Nov.5 Nov.12 Nov. 19 Nov.26 U. S. Government bonds: Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov.26 U. S. ViGtory notes: Oct. 29 Nov.5 Nov. 12 : Nov. 19 Nov.26 U. S. certificates of indebtedness: Oct. 29 Nov.5 Nov. 12 Nov. 19 Nov.26 Total earning assets: Oct. 29 Nov.5 Nov. 12 Nov. 19 Nov. 26 li-ink premises: Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov.26 Uncollected items and other deductions from gross deposits: Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov.26 54,990 53,755 58,648 57,635 53,917 48,816 49,167 48,180 48,920 48,068 26,851 26,184 26,540 26,035 26,290 41,320 40,080 39,237 41,104 39,921 5, 794 6,478 6,221 5, 711 6,047 3,293 3,959 3,257 3,719 3,437 4,088 4,849 5,230 3,882 4,446 41,604 39, 630 51,401 48,999 46, 980 64,668 64,127 63,217 63,426 61,184 176,381 172,407 169,003 184,022 ™ '"" 15, 253 11,611 13, 708 12,648 14, 175 5,689 12, 294 7,261 13, 081 8,434 6,759 7,046 8,246 6,989 8,478 35,459 38,916 | 41,611 i 25,144 ! 30,517 88,103 86,555 85,279 84,400 83,265 1308,067 1298,288 297, 653 293,811 298,611 73,053 79,619 76,110 74,334 76,029 1,616 1,626 1,723 1,791 1,977 8,375 7,309 11,117 11,594 10,882 7,025 6,933 6,7f~ 89,719 86,621 88,181 84,655 87,002 81,706 86,191 82,750 85,242 316,442 308,086 308,770 305,405 309,493 80,362 86,911 83,135 81,267 82,797 49,438 74,235 50,296 I 73,798 49,264 70,854 49,320 75,889 47,500 | 72,201 40,356 i 68,961 144,950 44,062 j 67,497 142,928 48,150 I 67,613 141,576 47,378 ! 68,665 147,533 51,042 ! 69,495 149,481 158,075 158,583 136 658 123, 089 112, 305 72,179 71,399 68,989 64, 781 64,457 71,712 71,897 70, 713 69,838 67,531 19 252 24 579 23 561 21 043 17 560 39 956 39 727 35 772 34 055 31 201 5,663 5,637 5,434 5,466 5,679 1 434 1 434 1 434 1 434 1 434 834 834 833 834 833 1,233 1,233 1,233 1,233 1,233 42, 065 42, 626 53, 069 63, 459 61, 358 88,296 86,135 84,333 81,232 82,449 497 i 486 ! 322 474 ! 301 ! 10 10 10 10 10 | I | ! 28,560 94,637 27,588 91,283 26,629 97.814 24,189 110,963 22,982 108,219 7,263 7,908 8,608 9,646 10,451 12,432 10,421 10,050 10,823 9,775 1,175,118 1,152,346 1,177,689 1.205,746 1,197,681 172,504 179,127 174,856 157.117 162,181 49,350 72,317 46,557 1163,545 2,003,320 50,244 71,951 48,594 '167,339 2,001,673 49,182 68,909 50,737 .177,143 2,008,678 49,136 73,912 46,337 184,371 2,008,110 47,226 69,981 46,385 163,896 2,023,946 1,918 l 1,847 1,945 1,977 j 3,177 3,108 3,334 3,616 3,796 521 390 472 494 420 164,718 168,056 171,333 172.118 171,364 49,734 51,702 54,071 49,953 50,181 1164,066 167,729 177,615 184,865 164,316 2,168,038 2,169,729 2,180,011 2,180,228 2,195,310 43,928 45,000 49,073 50,462 49,825 8,663 33,825 ; 20,210 53,385 11,545 37,657 : 27,989 54,681 11,154 31,745 i 27,089 49,328 12,350 31,879 ! 21,836 45,660 11,712 26,569 i 20,986 52,820 1,203,905 1,215,101 1,180,977 1,158,907 1,192,425 318,887 336,736 321,326 308,121 328,976 76,726 73,531 68,202 69,849 70,344 76,007 71,732 72,740 72,792 68,850 81,952 ! 81,537 ! 80,763 | 83,439 | 87,095 57,428 52,253 50,769 51,880 56,154 1106,916 110,808 106,840 105,349 106,618 1,597,392 1,611,724 1,603,773 1,514,467 1,542,975 2,253 2,125 2,244 2,150 2,409 44,221 42,336 37,763 30,417 28,091 1,488 1,933 1,639 1,489 1,365 1,398 1,409 1,549 1,290 1,490 2,313 I 2,316 2,335 2,334 1,818 1,070 815 610 315 215 60,230 58,916 54,801 51,477 56,830 298,375 299,769 287,854 275,227 247,703 113 113 114 114 114 4,490 4,490 4,490 4,490 4,489 116 116 115 116 116 8,867 ' 8,866 8,866 8,867 8,867 3,979 3,979 3,979 3,979 3,979 2,632 2,632 2,632 2,632 2,632 26,868 26,865 26,863 26,871 26,869 8,300 ! 11,301 8,300 | 11,300 8,300 J 11,300 8,300 17,399 8,200 16,322 269.434 268,047 269,310 331,154 293,676 1,153 1,153 1,153 1,153 1,153 i 52 82 184 274 3 3 3 3 3 2,220 1 1 1 1 1 39,618 17,216 39,612 17,255 39,612 17,256 48,895 17,286 39,650 17,547 8,481 8,481 8,482 12,828 12,826 12,826 12,826 12,821 94,665 139,786 93,283 143,203 94,040 136,536 95^034 139,346 90,664 137,171 90,987 93,336 90,747 86,310 89,634 1234.464 {238,337 224,601 222,517 235,222 3,396,043 3,421,575 3,368,846 3,306,695 3,303,717 891 891 603 603 613 631 631 885 885 885 915 915 1,323 1,323 1,328 1,354 1,517 231 231 231 231 231 15,993 16,081 16,577 17,047 17,333 29,337 94,366 40,503 29,190 101,465 46,451 30,079 97,595 46,085 30,829 102,482 45,197 25,559 85,523 35,534 22,501 26,925 26,858 26,034 24,763 60,295 63,629 62,066 68,905 56,870 51,916 53,341 49,666 52,796 46,623 44,615 43,479 41,461 48,113 41,501 742,976 787,960 772,277 804,424 709,401 1354 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Oct. 29 to Nov. 26,1920—Continued. [In thousands of dollars.] RESOURCES—Continued. New York. Boston. 5 per cent redemption fund against Federal Reserve Bank notes: Oct. 29 Nov. 5 Nov 12 Nov 19 Nov. 26 All other resources: Oct 29 Nov. 5 Nov Nov. Nov. Nov. RichAtmond. lanta. Chicago. St. MinneLouis. apolis. Kansas City. San Dallas. Francisco. Total. 2,620 2,616 2,597 2,609 2,627 1,300 1,300 1,300 1,300 1,300 1,139 1,139 1,139 1,139 1,139 451 451 451 451 451 503 507 503 491 471 2,467 1,798 1,665 2,059 1,363 623 623 623 623 623 512 386 573 465 328 916 916 916 916 916 586 586 586 586 586 665 665 665 665 665 12,854 12,059 12,090 12,376 11,541 537 462 529 558 509 1,022 851 1,070 859 1,195 651 646 782 793 949 320 266 274 282 364 289 411 744 291 312 216 216 264 198 225 639 833 747 718 1,084 390 404 423 436 449 109 128 181 210 263 263 274 304 315 267 908 1,109 911 889 897 359 432 561 481 673 5,703 6,032 6,790 6,030 7,187 507,054 506,991 502,153 497,154 497,477 1,856,957 1,871,252 1,875,850 1,842,979 1,815,062 484,412 495,551 487,123 487,974 487,363 616,878 616,978 617,734 611,411 615,088 281,661 285,497 288,933 284,660 286,603 279,106 276,018 274,824 274,767 267,341 968,222 980,426 955,686 952,462 950,492 263,255 274,127 268,455 268,653 260,528 167,828 171,621 171,529 171,694 164,149 276,380 282,705 271,561 286,286 268,340 19o,454 201,397 197,309 191,888 189,438 444,400 450,873 445,434 456,872 442,608 6,341,607 6,413,436 6,356,591 6,326,800 6,244,489 5 12 19 26 2 Includes bankers' acceptances bought from other Federal Reserve Banks without their indorsement: Oct 29 Nov. Nov. Nov. Nov. Cleveland. 1,072 1,072 1,072 1,072 1,072 Nov 12 Nov. 19 Nov. 26 Total resources: Oct 29 Nov. 5 Nov 12 Nov 19. . . Nov. 26 includes bills discounted for other Federal Reserve Banks: Oct. 29 Philadelphia. 5 12 19 26 81 199 51 389 55,414 35,604 27,217 27,129 32 550 24,503 16 352 14,760 3 197 10 072 14 833 12 736 10 282 6,998 7,000 7 017 437 138,750 141 232 120,266 111 984 112,106 • 247,078 225,171 200,183 163,940 154,083 6,917 13,362 14,883 19,736 17,299 14,352 93 50 LIABILITIES. Capital paid in: Oct. 29 Nov.5 Nov. 12 Nov. 19 Nov.26 Surplus fund: Oct. 29 Nov.5 Nov. 12 Nov. 19 Nov.26 Government deposits: Oct. 29 Nov.5 Nov. 12 Nov. 19 Nov.26 Due to members—reserve account: Oct.29 Nov.5 Nov. 12 Nov.19 Nov. 26 Deferred availability items: Oct.29 Nov.5 Nov. 12 Nov.19 Nov.26 Other deposits, including foreign Government credits: Oct.29 Nov.5 Nov. 12 Nov.19 Nov. 26 Total gross deposits: Oct. 29 Nov.5 Nov. 12 Nov.19 Nov.26 | 1 1 1 7,669 7,669 7,669 7,669 7,669! 12,351 12,351 12,351 12,351 12,351 1,688 3,905 1,188| 768 598 25,244 25,249 26,240 26,247 26,245 8,426 8,426 8,426 8,469 8,490 10,300 10,318 10,320 10,352 10,352 5,257 5,258 5,268 5,272 5,277 3,960 3,995 4,000 4,009 4,013 13,766 !13,766 j13,777 i 13,784 ;13,813 4,306 4,307 4,308 4,332 4,346 3,385 3,387 3,388 3,394 3,396 4,506 4,507 4,507 4,447 4,456 4,052 4,083 4,083 4,085 4,085 6,882 6,859 6,861 6,869 6,878 97,753 97,824 98,847 98,929 99,020 51,308 51,308 51,308 51,308 51,308 13,069 13,069 13,069 13,069 13,069 13,712 13,712 13,712 13,712 13,712 8,067 I 8,067 8,067 8,067 8,067 7,050 7,050 7,050 7,050 7,050 23,917 23,917 23,917 23,917 23,917 5,884 5,884 5,884 5,884 5,884 5,178 5,178 5,178 5,178 5,178 8,395 8,395 8,395 8,395 8,395 4,152 4,152 4,152 4,152 4,152 11,662 11,662 11,662 11,662 11,662 164,745 164,745 164,745 164,745 164,745 1,681 863 1,039 1,062 1,226 438 I 765 1,162 ! 5,757 580 i 1,219 1,181 ! 456 1,336 ! 947 1,920 3,771 910 1,559 2,192 883 1,618 439 1,503 1,268 1,731 3,227 1,921 2,493 2,318 851 2,150 1,749 1,614 1,950 1,125 3,043 944 167 1,337 18,754 47,378 17,845 12,259 15,909 258,978 |250,085 249,820 247,727 244,075 60,921 62,118 63,308 63,589 62,116 44,534 42,510 46,262 44,884 42,732 77,214 52,694 1119,135 76,876 50,326 121,194 78,628 49,742 114,818 81,965 49,579 122,525 71,747 47,277 110,832 1,805,661 1,777,256 1,801,864 1,781,806 1,711,774 60,874 46,709 23,308 63,562 59,865 51,882 23,325 76,472 60,884 57,422 21,993 66,292 64,239 52,082 25,206 69,234 59,762 53,591 16,926 67,010 38,283 44,774 41,841 41,927 35,158 20,309 53,460 24,915 59,455 22,717 49,429 23,171 60,090 18,291 53,597 4,556 14,730 3,834 255 913 2,129 3,872 3,280 2,396 i 1,626 947 254 1,177 647 122,470 120,303 120,615 115,443 113,602 703,701 683,343 712,744 688,639 660,024 106,806 110,702 112,813 113,466 107,433 43,428 44,999 46,658 47,105 48,008 101,358 110,085 110,025 108,592 103,996 53,373 60,303 49,922 53,036 55,194 740 879 550 832 562 12,572 18,154 16,869 16,352 13,110 920 1,121 1,242 885 1,441 168,326 170,086 169,011 164,148 162,770 | 150,584 154,444 150,276 150,378 147,838 59,341 59,207 55,646 .58,475 56,908 49,283 46,1^8 47,192 45,136 47,190 461 411 436 586 409 255 248 305 248 306 315 197 207 216 250 822,187 103,228 212,906 826,312 175,998 218,000 843,472 166,373 213,222 813,838 168,334 215,457 778,073 165,24J 208,656 107,986 112,200 114,412 111,867 112,031 73,344 70,832 69,972 71,739 65,702 32,470 40,268 39,577 35,574 37,142 34,673 34,983 34,864 36,615 33,757 571,807 631,326 601,624 616,871 582,432 1,317 1,715 1,353 1,792 1,877 589 601 681 566 573 306 301 246 343 552 418 359 409 479 415 342 272 315 322 372 3,072 2,665 3,095 3,607 3,030 21,307 26,923 25,708 26,228 22,927 324,622 1334,029 318,684 319,209 |313,909 101,713 111,264 106,740 107,641 100,039 66,032 69,344 69,664 69,901 62,843 132,823 139,917 130,387 145,027 128,077 86,357 93,016 91,383 87,089 86,741 158,005 161,885 153,721 162,914 1148,956 2,417,529 2,482,883 2,447,041 2,437,164 2,333,042 | i | | j DECEMBER, 1355 FEDERAL RESERVE BULLETIN. 1920. Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Oct. 29 to Nov. i S, 1920—Continued. [In thousands of dollars.] LIABILITIES—Continued. Federal Reserve notes in actual circulation: Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov. 26 Federal Reserve bank notes in circulation—net liability: Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov. 26 All other liabilities: Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov. 26 Total liabilities: Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov. 26 Minne- KanSt. sas Louis. apolis. City. Philadelphia. Cleveland. Richmond. Atlanta. Chicago. 876,706 886,709 872,609 869,621 876,321 273,266 271,319 272,469 271,054 273,194 352,123 346,776 351,659 342,885 352,873 146,116 145,550 146,700 144,816 146,492 .77,734 .76,676 76,195 .74,078 .72,398 554,186 556,455 546,615 542,200 544,759 39,617 38,678 38,226 36,897 37,139 21,619 21,658 21,594 21,673 21,916 21,763 21,874 22,224 22,276 22,515 11,524 11,589 11,623 11,630 11,638 13,934 14,153 14,176 14,267 14,449 37,205 10,451 37,026 10,599 37,220 10,572 37,339 10,512 37,539 10,374 7,934 i 7,894 7,853 j 7,798 I 7,758 I 41,895 42,996 43,995 45,068 45,976 6,074 6,298 6,597 6,729 6,980 2,711 5,081 5,192 5,375 5,449 3,008 3,098 3,084 3,312 3.431 3; 624 3,729 14,526 ! 3,003 15,233 i 3,444 15,473 ' 3,603 16,013 3,480 16,555 3,718 ,856,957 484,412 616,878 .871,252 495^ 551 616,978 .875, 850 487,123 617,734 ,842,979 487,974 611,411 ,815,062 487,363 615,088 281,661 285,497 288,933 1284,660 286,603 279,106 276,018 274,824 274,767 267,341 968,222 980,426 955,686 952,462 950,492 45.5 44.3 43.3 43.2 43.2 40.5 40.4 40.3 40.1 40.1 40.3 39.0 40.2 40.2 40.0 14,275 10,000 9,520 10,000 10,000 36,122 37,508 35,141 38,845 40,216 7,050 3,000 New York. Boston. Dallas. Total. i 296,168 1293,735 289,041 1288,696 |290,116 ! i ! 17,324 ! 17,672 ; 18,369 18,434 18.520 i 5,216 5,478 ! 5,712 5,856 ': 6,051 ! 507,054 506,991 502,153 497,154 497,477 i 82,714 83,190 82,729 82,609 82,137 137,898 138,629 137,348 136,804 136,167 91,071 251,746 90,265 254,126 3,351,303 3,354,180 256,662 3,328,985 87,797 86,584 258,759 3,307,43? 258,281 3,325,53? 84,464 111,575 i110,750 1109,161 109,329 108,336 15,377 15,218 15,086 14,925 14,793 7,615 7,545 7,484 7,525 7,464 10,598 10,627 10,653 10,605 10,505 214,961 214,533 215,080 213,881 214,610 2,585 2,628 2,717 2,814 2,837 3,704 3,918 4,025 4,163 4,283 2,207 2,336 2,410 2,453 2,532 5,507 5,714 5,875 6,063 6,326 95,316 99,271 101,893 104,646 107,534 263,255 274,127 268,455 268,653 260,528 167,828 171,621 171,529 |171,694 1164,149 276,380 282,705 271,561 286,286 268,340 195,454 201,397 197,309 191,888 189,438 444,400 450,873 445,434 456,872 442,608 6,341,607 6,413,436 6,356,591 6,326,800 6,244,489 40.4 42.7 42.0 40.8 41.3 39.2 40.0 39.2 39.0 39.5 40.3 39.5 39.9 40.9 40.2 39.6 39.8 41.7 41.3 40.3 44.9 45.0 48.1 49.5 44.9 43.1 43.0 43.6 44.1 44.4 MEMORANDA. Ratio of total reserves to net deposit and Federal Reserve noteliabilities combined—per cent: Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov. 26 Contingent liability as indorser on discounted paper, rediscounted with other Federal Reserve Banks: Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov.26 Bankers' acceptances sold to other Federal Reserve Banks without indorsement: Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov.26 Contingent liability on bills purchased for foreign correspondents: Oct. Nov. Nov. Nov. Nov. 29 5 12 19 26 , 49.6 56.0 51.1 51.6 55.0 39.1 38.6 38.3 40.0 40.8 51.3 48.7 51.1 49.4 49.6 51.9 50.1 55.2 56.0 56.5 48,000 44,700 38,000 14,750 10,150 247,078 225,171 200,183 163,940 154,083 37,305 26,603 44,895 32,828 34,433 25,023 41,878 28,629 i 23,680 26,250 40,503 27,089 16.739 25,830 29,969 27,807 I 12;793 25,860 28,464 26,600 ' 13,362 14,883 19,736 17,299 14,352 13,362 14,883 19,736 17,299 14,352 1,168 1,168 1,168 1,168 1,168 6,080 6,078 6,076 6,072 6,071 1,280 1,280 1,280 1,280 1,280 1,312 1,312 1,312 1,312 1,312 784 784 784 784 784 576 576 576 576 576 1,904 1,904 1,904 1,904 1,904 432 432 432 432 432 752 752 752 752 752 768 768 768 768 768 416 ; 416 416 416 416 I 736 736 736 736 736 16,208 16,206 16,204 16,200 16,199 Maturities of bills discounted and bought, also of Treasury certificates of indebtedness held by the 12 Federal Reserve Banks combined. [In thousands of dollars.] Within 15 days. Bills discounted: Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov.26 Bills bought: Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov. 26 United States certificates of indebtedness: Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov. 26 { ! ! j 1 ! j 16 to 30 days. 31 to 60 days. 61 to 90 days. 1,591,408 1 635,658 1 599,696 1,567,959 1,650,801 300,671 277,975 301,964 306,981 296,096 512,062 504,721 508,238 515,532 501,627 368,446 375,876 338,166 234,289 235,181 115,046 131,993 119.593 97,488 78,663 73,439 68,556 64,595 62,281 62,111 82,560 76,589 83,612 98,948 90,601 27,330 22,631 20,054 18,510 16,328 15,370 12,178 16,592 80,051 35.027 8,100 12,597 12,499 12.922 22', 045 28,883 26,419 24,850 12,411 12,385 14,135 10,927 8,947 4,921 3,920 Over 90 days. 28,710 32,595 36,686 48,613 51,695 Total. 2,801,297 2,826,825 2,784,750 2,673,374 2,735,400 298,375 299,769 287,854 275,227 247,703 202,946 205,926 206,422 220,849 220,299 269,434 268,047 269,310 331,154 293.676 1356 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. FEDERAL RESERVE NOTES. Federal Reserve Agents' accounts at close of business on Fridays, Oct. 29 to Nov. 26, 1920. [In thousands of dollars.] New Boston. York. Phila- Cleve- ! RichChidelAtlanta. cago. phia. land, f mond. St. Minne- Kansas Louis. polis. City. Dallas. San Francisco. Total. RESOURCES. Federal Resarve notes on hand: Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov. 26 Federal Reserve notes outstanding: Oct.29 Nov. 5 Nov. 12 , Nov. 19 Nov. 26 Collateral security for Federal Reserve notes outstanding: Gold and gold certificates— Oct. 29 Nov. 5 , Nov.12 Nov. 19 Nov. 26 Gold redemption fund— Oct. 29 Nov. 5 Nov.12 Nov. 19 Nov. 26 Gold settlement fund—Federal Reserve Board— Oct.29 Nov.5. Nov. 12 Nov.19 Nov. 26 Eligible p a p e r Amount required— Oct. 29 Nov.5 Nov. 12 ' Nov. 19 Nov. 26 E xcess amount held— Oct. 29 Nov.5 Nov. 12 Nov. 19 Nov. 26 Total resources: Oct. 29 Nov. 5 Nov.12 Nov. 19 Nov. 26 117,300 117,300 120,500 116,500 110,200 141,000 139,800 139,800 143,000 168,000 35,280 34,280 35,680 33,680 39, — 30,000! 30,000! 32,0001 32,200| 30,100 23,339 26,159 27,519 27,019 25,329 58,875 59,535 61,295 63,565 62,195 60, 600 129,160 132,040 126,200 128,360 312,492 310,024 303,238 302,548 303,243 986,339 991,176 999,449j 991,577 996,447i 281,386 282,705 285,706 287,073 284,598 370,252! 369,0131 370,756J 369,866 371,065 151,4791 152,045 151,816 151,414 151,585 183,492 182,231 180,521 179,461 177,209 632,736 630,202 629,958) 637,057 632,1751 5,900 5,900 5,900 5,900 5,900 209,608 209,608 209,608 209,608 209,608 19,805 17,337 18,750 19,061 17,45ft 8,12, 17,312 16,143 15,394 14,424 105,000 105,000 110,000 100,000 100,000 45,000 25,000 25,000 25,000 25,000 181,787 181,787 168,588 177,587 179,887 723,606 739,256 748,698 741,575 747,415 167, 163,608 168,508 167,407 162,407 41,315 16,226 44,816 20,213 15,363 269,094 266,112 259,488 212,335 195,049 5,558 25,157 3,229 9,191 7,676 24,683 36,230 24,952 11,755 24,263 6,395 7,164 19,191 14,610 11,225 783,599 2,382,772 753,574 2,388,264 771,792 2,398,186 741,809 2,338,489 732,049 2,355,943 609,610 625,847 610,321 617,017 616,552 795,187 804,256J 798,4641 783,6871 796,493 332,692 337,413 350,342| 344,457 339,724 449,9291,377,722 447,388 1,453, 668 445,587 1,431,602 444,088 1,433,239 440,0041,455,141 346,4491 343,994! 340,037! 342,968j 342,957! 188,729 196,719 191,359 187,398 185,989 284,153 285,251 276,880 281,057 276,483 215,427 215,832 211,325 203,009 203,918 594,314 8,360,583 598,883 8,451,089 590,479 8,416,374 599,246 8,316,464 614,0018,359,254 400 2,1,308,300 400 2!2,314,900 4002:2,326,500 4002:2,330,200 400 2'2,362,400 660,380 660,380 666,680 668,580 674,580 690,520 691,720 697,020 699,920 701,120 380,480 385,840! 388,200 389,700| 390,200! 405,98011,161,180 406,420 i 1,231,180 408,380J 1,237,220 408,380 1,243,460 410,00011,246,660 383,400} 384,300 384,780 385,820 389,100 181,720 187,720 187,720 187,720 187,720 262,020 262,020 262,020! 262,520' 262,520 196,160 196,160 196,160 196,160 196,160 524,960 7; 1,881,500 525, 760 7. 1,972,800 530, 760 8, 5,011,840 534 320 8; 5,033,180 538, 240&5,086,100 296,6081,180,961 299,076 1,183,924 302,662 1,187,251 307,352 1,195,623 313,957jl,197,953 340,714 343,395 345,294 347,827 350,302 290,268 292,707 294,264 297,854 299,955 205,662! 207,636 208,855 211,267 213,286 163,613 164,654: 166,564| , 168,354; 170,596 207,650; 209,799 211,788! , ! 213445! 213,445! 215,498! 89,698 90,365 91,009 91,514 92,459 137,003 138,243 139,087 140,219 141,403 88,001 88,973 89; 932 91,371 92,579 228,659,3,696,681 232,0133,722,603 235,482-3,747,418 237,334i3,782,363 240,077!3,814,190 429,792 1,127,339 427,324 1,130,976 423,7381,139,249 419,0481,134,577 413,443 1,164,447 319,665 316,985 321,385 320, 753 324,278 400,252! 399,013! 402,756| 402,066! 401,165| 174,818 178,204 179,335 178,433 176,914 242,367 693,336 175,750! 92,022 241,7661 759,362 174,5011 97,355 241,816 ~ " ~ " ' 761,998 172,994! 96,711 240,026| i vjo, i u i iHijOio 16,206 239,4041 760,535 173,602! 95,26l| 125,017! 123,777 122,933 122,301 121,117 108,159 107,187 106,228 104,789 103,581 296,3014,184,819 293, 747 4,250,197 295,278 4,264,422 296,98614,250,817 298,163J4,271,910 3,500 3,500 3,500 32,025 32,025 32,025 32,005 32,005 15,389 17,708 15,809 18,277 15,802 3,500 3,500 19,380 16,r" 16,! 16,220 18,220 7,560 7,360 8,460 7,640 7.340 12,790 12,690 13,470 14,320 14,320 156.370 84,377: 117,457 157,521 84,550i 116,417 156,014 84,446! 114,473 156,155 84,601! 114,661 155,382 83,756 113,777 95,369 94,497 92,758 90,469 89,261 291,4213,666,170 289,067 3,659,448 290,898 3,660,033 292,606 3,657,488 294,783 3,653,281 9,831 7,831 6,831 5,831 5,331 277,776 277,776 276,776 276,756 276,256 7,645! 12,805! 12,265 11,605 11,505) 4,380 3,380 518,649 590,749 604,389 593,329 618, 629 3,860 5,860 5,8601 6,860! 6,860 13,052 13,052 13,052 13,052 13,052 3,925! 3,776!! 3,789 4,129 4,077 l,599i 932! 1,288! 1,783! 2,038| 3,960 2,720 3,877 2,744 3,561 5,995 5,023 6,064 6,624 5,917 13,876 19,672 16,863 15,856 13,610 107,222 119,101 118,103 119,624 109,357 80,761 71,611 80,951 95,107 94,609 790,120 755,469 782,810 809,366 812,068 3,104 1,130 2,901 3,499 1,480 3,168 4,627 2,717 2,926 2,684 8,236 8,263 8,858 7,877 8,955 101,389 90,000 38,500 101,389 90,000 38,500 101,389 100,000l 48,500 101,389 110,0001 45,500 106,389 110,000 45,500 58,000 56,000 57,0001 57,000 55,000 168,145 164.144 160.145 176,145 179,14* 41,031 39,531 38,531 37,931 37,131 12,200! 12,200i 12,200! 11,200 11,200! 37,360 37,360 35,360 38,360 36,360 12,734 14,734 13,734 11,734 11,734 228,1871 109,875 118,824 226,387 112,415 118,104 217,687 100,415 117,304 206,407 102,415 116,035| 209,707 104,605 116,025 456,355 457,795 460,955 453,035 444,075 107,554 108,354 107,834 107,235 107,314 57,526 58,366 57,906 58,566 57,466 76,137 76,337 75,236 73,557 73,856 66,809 66,909 6.6,129 66,280 66,279 24,070 23,391 23,250 24,601 23,391 51,650 64,104 39,646 32,925 62,431 14,329 12,330 41,679 11,972| 14,814 45,057 11,029 10,202 39,474 6,591 44,095 14,438 13,973. 6,972 41,589 11,899 14,148 12,339 7,751 11,076 20,040! 20,601 21,044 21,454 19,353 4,1 4,1 4,; I 196,784 2,491,052 197,784*2,507,102 193,084]2,482,344 181,643 2,451,742 186,564 2,455,600 6,592 16,069 4,303 9,654 21,055 509,594 541,444 491,919 408,159 434,063 LIABILITIES. Federal Reserve notes received from Comptroller of the Currency—gross: Oct. 29 Nov.5 Nov. 12 Nov.19 Nov. 26 Less amounts returned for destruction: Oct. 29. -..., Nov.5 Nov. 12 -. Nov. 19 Nov. 23 Net amount of Federal Reserve notes rec3ived from Comptroller of the Currency: Oct. 29 .* Nov.5 Nov.12 Nov. 19 Nov.28 726, 726, 726, 726, 727, 467,844 471,818 , 475,2^2 480,203 486,125 l l ^ « v y , XMM. VV/1 XUl^ « KJXJ 1357 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. Federal Reserve Agents'9 accounts at close of business on Fridays, Oct. 29 to Nov.. 26, 1920—Continued. [In thousands of dollars.] New York. Philadelphia. Cleveland. 262,733 251,920 250,751 250,002 249,032 116,778 119,097 117,198 119,666 122,191 142,065 142,626j 153,069 163,459 161,358 41,604J 39. 630 5i; 401 48,999 46,980! 223,102 992,700 198,013 ,005,368 213,404 1,008,186 197,800 953,910 195,250 942,464 173,166 189, 765 171,737 176,598 170,083 252,870! 262,617! 242,6391 218,162, 233,970 783,599 2,382,772 753,574f2,388,264 771,792 2,398,186 741,809 2,338,489 732,049 2,355,943 609,610 625,847 610,321 617,017| 616,552 795,187! 804,256! 798,464 783; 687! 795,493! Boston. Richmond. A tt ll aa nr it taa A Chicago. - San Francisco. St. Minne- Kansas Louis. polis. City. Dallas. Total. LIABILITIES—continued. Collateral received from Federal Reserve Bank: Gold— Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov. 26 Eligible paper— Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov. 26 " Total liabilities: Oct. 29 Nov.5 Nov. 12 Nov. 19 Nov. 26 130,705 128,257 134, 650 124,961 123,356 64 > 668 64,127 63,21' 63,426 61,184 176,381 172,407 169,003 184,022 188,100 48, 816 49,167 48,180 48,920 48,068 26,851 26,184 26,540 26,035 26,290 116,270 119,579 119,606 117,025! 115,830 142,894 141,495 140,554 140,636 139,416 508,005 521,899 500,601 485,960 506,506 121,883 120,326 118,863 121,673) 121,287 69,856 73,180 68,108 65,157 64,438 117,816 121,394 114,710 117,652 115,445! 78,708, 203,376 203, 3,000,646 3' 81,057 213, 853 3,048,546 78; 468! 197; 387 "!,974,263 2: 74,03l| 191, 297 2! !, 859,901 77,355 207, 619 2; 1,889,663 332,692' 337,4131 350,342 344,457! 339,724 449,929 1,377,722j 447,38811,453,668 445,587j 1,431,6021 444,0881,433,239 440,004; 1,455,141 346,449 343,994? 340,037 342,988 342,957 188,729 196,719 191,359 187,398 185,989 284,153! 285,251 276,880! 281,057! 276,483| 215,427! 594, 314 8, !, 360,583 215,832 598, 883 8, 5,451,089 211,325 590, 479 8, 5,416,374 203,009 599, 246 85,316,464 ; 203,918 614, 0018.5,359,254 41,320 28,560! 40,080 27,588 39,237 26,6291 41,104 24,189 39,921! 22,982| 94,637 1,175,118 91,283 1,152,346 97,814 1,177,689 110,9631,205,746 108,2191,197,681 CONDITION OF MEMBER BANKS IN LEADING CITIES. Substantial liquidation of principal loan ac- duction in the banks' own loan and deposit accounts, as reflected in an aggregate reduction counts. of nearly 500 millions in total loans and investGovernment credit operations, especially ments of about 825 member banks in leading about the end of the period under review, were cities, is the most salient feature of banking de- quite considerable in volume but did not differ velopment for the weeks between October 15 in character from those described in previous and November 19. Net deposits show a com- reviews and apparently affected but little the mensurate reduction, while liquidation of bor- general situation. In the following exhibit rowings from the Federal Reserve Banks are shown the weekly changes in the principal set in only later during the period and didasset and liability items of all reporting memnot attain the same proportion as the re-ber banks for the five weeks under review. Resources and liabilities of member banks in leading cities on Fridays from Oct. 15 to Nov. 19, 1920. [In millions of dollars.] Oct. 15. Oct. 22. Oct. 29. Nov. 5. Nov. 12. Nov. 19. NlTmbp.r of b a n k s 822 823 823 823 825 824 United States bonds United States Victory notes United States certificates of indebtedness 877 191 362 878 193 314 876 193 295 879' 194 285 880 195 278 885 195 345 1 430 . . . Total United States securities owned . . Laans secured by Government war obligations, including rediscounts with Federal Reserve Bank Loans secured by corporate stocks and bonds All other loans and investments, including rediscounts with Federal Reserve Bank 1,385 1,364 1, 358 1,353 1,425 924 3 162 915 3,106 912 3,142 911 3, 087 909 3 ,049 894 3,044 11 768 11,697 11,599 11, 579 11,521 11,430 Total bans and investments, including rediscounts with Federal Reserve Bank 17 284 17,103 17,017 16, 935 16 ,832 16,793 1 422 381 11,473 2 ,808 188 1,333 377 11,241 2,815 152 1,365 367 11,172 2,805 81 1, 335 387 11, 094 817 45 1,370 384 11,122 2 ,810 30 1,344 378 10,992 2,786 173 2 ,249 2,204 2,244 2, 278 2 ,228 2,119 928 1 ,321 930 1,274 939 1,315 942 1, 336 905 1 ,323 884 1,235 Reserve balance with Federal Reserve Bank Cash in vault Net demand deposits. . . . . Time deposits Government deposits Bills discounted and reliscounted with Federal Reserve Bank, total.. Secured by Government war obligations Allother 1358 FEDERAL RESERVE BULLETIN. As against an increase of over 11 millions in the holdings of United States war securities proper, i. e., Liberty bonds and Victory notes, the reporting banks show a reduction of 16.4 millions in their holdings of Treasury certificates, notwithstanding tne substantial increase in these holdings shown on November 19 following the most recent certificate issue. For the member banks in New York City a reduction for the five weeks .of over 2 millions in Liberty bonds and Victory notes as against an increase of over 12 millions in Treasury certificates are noted. All classes of loans show considerable reductions—loans supported by Government obligations by about 30 millions, loans supported by corporate securities by about 118 millions, and commercial loans and discounts (composing the bulk of the item "All other loans and investments7') by about 338 millions. Total loans and investments, accordingly, on November 19 stood at 16,793 millions, or about 490 millions below the total shown five weeks previous. Member banks in New York City show larger liquidation of loans collateraled by Government and corporate securities and a reduction of over 135 millions in other loans and investments, curtailment of loans secured by stocks and bonds reflecting largely the heavy selling of stock exchange securities during November, while other loans and investments of the New York banks fell off more heavily during the last week in October and the week ending November 19. The ratio of combined holdings of United States war securities and loans supported by such securities to total loans and investments shows a rise from about 12 to 12.2 per cent for all reporting banks and from about 15 to 15.3 per cent for member banks in New York City. Government deposits show a gradual decline from over 188 millions on October 15 to less than 30 millions on November 12. On the following Friday, following the allotment of the DECEMBER, 1920. November 15 certificate issue, these deposits were replenished to the extent of 173 millions. Other demand deposits (net) of the reporting banks followed a downward course nearly in keeping with loans and investments, the reduction of this item for the five weeks being over 480 millions. Time deposits show but slight fluctuation during the first four weeks and at the close of the period were 22 millions below the October 15 total. For the New York City banks moderate reductions in Government and time deposits and a decline of 255 millions in net demand deposits are shown. Accommodation of all reporting institutions at the Federal Reserve Banks during the first three weeks under review fluctuated within moderate limits, reaching a high of 2,278 millions on November 5. During the following two weeks the banks were able to reduce their loans from their reserve banks by 159 millions, or to 12.6 per cent of their total loans and investments, compared with 13 per cent on October 15. For the New York City banks this ratio remained practically unchanged at slightly over 14.5 per cent. Reserve balances show a sharp decline of over 89 millions for the week ending October 22, this decline corresponding to reductions of over 181 millions in total loans and investments, of 232 millions in net demand deposits, and of 45 millions in the bank's borrowings from the Federal Reserve Banks. Fluctuations during the subsequent weeks were within narrower limits, the November 19 total of the item, 1,344 millions, being about 78 millions below the October 15 total. Cash in vault at the close of the period stood at 378 millions, an increase of 7 millions since the middle of October. Reserve balances of the New York members show a decline of 73 millions for the week ending October 22, the total shown on that date, 567 millions, being a low record for the year. Their cash holdings show an increase of about 2.5 millions for the period. Principal resource and liability items 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. 22 to Nov. 19, 1920. 1. ALL REPORTING MEMBER BANKS. [In thousands of dollars.] Boston. Number of reporting banks: Oct. 22 Oct. 29 Nov. 5 Nov. 12 Nov. 19 United States bonds to secure circulation: Oct. 22 Oct. 29 Nov. 5 Nov. 12 Nov. 19 Cleveland. NewYork. 115 115 115 115 115 12,609 12,610 12,610 12,610 12,610 46,663 46,663 46,959 47,459 47,459 11,347 11,347 11,347 11,347 11,347 42,295 42,400 42,428 42,428 42,440 Richmond. Atlanta. Chicago. St. Minne- Kansas Louis. apolis. City. Dallas. San Francisco. Total. 81 81 81 81 80 46 46 46 46 46 108 108 108 108 108 35 35 35 35 35 37 37 37 38 38 83 83 83 83 83 51 51 51 51 51 68 68 68 68 68 823 823 823 825 824 28,908 28,908 29,008 29,008 28,958 14,380 14,455 14,530 14,530 14,580 21,550 21,552 21,551 21,551 21,548 16,623 16,623 16,422 16,432 16,422 7,371 7,371 7,370 7,371 7,371 14,701 14,701 14,751 14,751 14,751 19,573 19,573 19,573 19,573 19,573 32,648 32,648 32,648 32,623 32,648 268,668 268,851 269,197 269,683 269,707 DECEMBER, 1359 FEDERAL RESERVE BULLETIN. 1920. Principal resource and liability items 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. 22 to Nov. 19, 1920—Continued. 1. ALL REPORTING MEMBER BANKS—Continued. [In thousands of dollars.] New York. Philadelphia. 18,255 19,425 19,622 19,174 19,801 253,113 248,439 250,278 252,726 249,924 29,076 30,122 29,543 29,669 30,194 62,107 61,179 60,995 60,967 61,620 33,429 33,453 33,796 33,529 33,903 28,111 28,080 28,298 27,969 28,002 51,722 51,313 51,696 51,926 54,395 13,217 13,533 13,353 13,373 13,577 5,938 5,838 5,840 5,801 5,850 83,426 83,500 83,440 84,105 84,256 9,168 9,218 9,301 9,425 9,791 18,861 19,064 19,182 19,217 19,389 7,048 6,887 6,819 6,856 6,754 4,033 4,019 3,996 4,023 3,960 39,054 38,574 38,640 38,835 38,408 2,705 2,720 2,735 2,721 1,025 1,069 1,056 1,053 1,058 21,666 15,526 16,101 15,416 19,911 152,597 147,242 142,750 137,128 179,229 16,115 13,774 13,514 13,280 16,923 15,355 14,014 13,300 12,111 16,593 7,234 7,118 7,094 7,052 7,822 6,706 6,624 6,520 6,456 6,754 53,289 51,275 46,311 46,917 52,154 3,842 3,695 3,853 4,077 4,687 58,468 53,399 54,173 53,001 58,172 535,799 525,844 523,427 521,418 560,868 65,706 64,461 63,705 63,721 68,255 138,618 136,657 135,905 134,723 140,402 76,619 76,366 76 717 76,445 77; 437 53,230 53,178 53,344 52,978 53,296 165,615 36,371 162,714 36,556 158,198 36,348 159,229 36,617 166,505 37,407 47,384 46,982 46,924 46,200 45,825 451,223 438,565 438,890 438,883 422,170 70,896 76,945 75,995 75,775 74,017 70,429 69,478 70,985 68,892 68,443 29,895 30,024 30,796 29,844 29,950 32,036 31,423 31,385 31,845 31,066 90,293 95,441 92,635 95,280 96,858 194,377 197,680 198,136 196,642 197,555 1,311,665 1,359,100 1,298,701 1,267,917 1,243,662 214,341 212,864 212,566 211,520 214,695 328,673 327,329 330,534 329,013 331,465 108,188 108,747 113,501 114,285 113,409 59,680 58,802 58,752 59,104 60,608 453,409 449,315 449,040 445,905 452,611 138,584 127,442 127,651 127,261 127,283 31,150 30,983 31,116 31,897 33,832 817,689 816,725 815,386 804,741 809,389 4,170,229 4,087,314 4,078,657 4,076,341 4,041,933 590,076 588,161 591,455 590,315 979,530 983,644 988,557 975,869 972,969 407,911 403,293 396,980 395,628 388,840 427,738 425,437 423,670 408,914 412,904 1,807,573 1,800,459 1,795,207 1,784,561 1,754,087 409,180 407,392 408,439 399,692 395,614 298,519 298,941 301,638 302,499 1,117,918 1,114,786 1 114,619 1,100,584 1,110,941 6,468,916 6,410,823 6 339,675 6,304,559 6,268,633 941,019 942,431 943,721 941,331 941,488 1,517,250 1,517,108 1,525,981 1,508,497 1,513,279 622,613 618,430 617,994 616,202 "~\636 572,684 2,516,890 568,840 2,507,929 567,151 2,495,080 552,841 12,484,975 557,874 2,470,061 615,829 603,622 604,181 595,510 593,158 84,098 84,018 82,266 81,464 80,221 612,410 645,594 619,656 654,911 629,783 70,501 65,512 69,112 72,093 71,606 104,007 104,159 105,753 101,398 101,668 35,840 36,700 35,323 33,562 34,826 28,823 32,052 28,852 29,594 27,900 26,763 24,796 25,343 25,172 25,369 121,021 116,776 125,852 125,210 124,482 18,010 18,719 18,901 19,478 19,633 38,058 18,583 36,088 17,570 38,962 18,708 35,859 18,969 38,320 18,295 13,942 14,507 13, 908 13,840 13,441 848,232 832,298 819,986 819,019 797,313 5,012,334 4,993,980 4,928,657 4,915,610 4,876,940 698,017 684,743 689,300 694,716 685,316 Boston. Other United States bonds, including Liberty bonds: Oct. 22 Oct. 29 Nov. 5 Nov. 12 Nov. 19 United States Victory notes: Oct. 22 Oct. 29 Nov. 5 Nov. 12 Nov. 19 United States certificates of indebtedness: Oct. 22 Oct. 29 Nov. 5 Nov.12 Nov. 19 Total United States securities owned: Oct. 22 Oct. 29 Nov. 5 Nov. 12 Nov. 19 Loans secured by Government war obligations, including rediscounts with Federal Reserve Bank: Oct. 22 Oct. 29 Nov. 5 Nov. 12 Nov. 19 Loans secured by stocks and bonds other than United States securities: Oct. 22 Oct. 29 Nov.5 Nov. 12 Nov. 19 All other loans and investments, including rediscounts with Federal Reserve Bank: Oct. 22 Oct. 29 Nov.5 Nov. 12 Nov. 19 Total loans and investments, including rediscounts with Federal Reserve Bank: Oct. 22 Oct. 29 Nov.5 Nov. 12 Nov. 19 Reserve balances with F e d e r a l Reserve Bank: Oct. 22 Oct. 29 Nov.5 Nov. 12 Nov. 19 Cash in vault: Oct. 22 Oct. 29 Nov.5 Nov. 12 Nov. 19 Net demand deposits on which reserve is computed: Oct. 22 Oct29 Nov. 5 Nov. 12 Nov.19 -"••,521 San Francisco. St. j Minne- Kansas Dallas. Chicago. Louis. apolis. City. 956,753 950,397 962,009 947,750 941,389 339,003 339,698 339,937 1339,142 !335,318 249,829 246,026 245,800 249,467 245,737 186,066 189,752 186,642 185,061 182,324 23,812 22,354 9,877 23,742 22,451 9,883 23,519 22,666 9,816 23,509 21,981 10,073 23,448 22,451 64,114 65,772 66,438 65,717 67,354 609,204 607,386 610,087 610,356 614,742 5,004 5,097 5,186 5,240 5,170 3,181 3,076 3,072 3,191 3,224 14,067 14,339 14,375 14,736 14,915 193,494 193,386 193,627 195,217 195,496 2,028 1,923 2,010 1,855 1,636 7,233 6,803 6,729 6,709 7,166 5,009 4,980 5,379 5,206 5,964 22,798 22,019 21,662 21,847 26,203 313,872 294,993 285,223 278,054 345,402 20,318 20,240 20,319 20,095 20,138 50,750 50,343 50,185 50,209 50,535 50,117 50,080 50,690 49,951 51,212 133,627 134,778 135,123 134,923 141,120 1,385,238 1,364,616 1,358,134 1,353,310 1,425,347 31,694 15,802 29,087 10,828 32,232 16,569 29,381 10,284 31,743 17,224 30,407 10,029 31,940 17,011 30,492 9,721 32,854 17,053 31,311 10,558 34,840 34,224 34,155 32,819 33,807 914,407 911,548 911,168 908,702 893,912 80,918 82,000 81,142 79,824 82,727 39,450 40,637 39,944 37,698 37,920 145,462 147,077 146,431 147,952 148,244 3,105,903 3,141,976 3,087,514 3,049,018 3,044,011 520,755 528,395 528,307 526,599 297;986 514,276 272,147 267,757 265,021 264,757 260,095 995,965 991,758 985,203 990,726 997,690 11,697,312 11,599,276 11,578,520 11,520,642 11,430,304 365,789 366,733 370,297 371,502 369,009 372,548 368,758 365,684 362,127 359,785 1,309,894 1,307,837 1,300,912 1,306,420 1,320,861 17,102,860 17,017,416 16,935,336 16,831,672 16,793,574 85,863 83,613 83,141 83,408 82,044 1,333,215 1,365,222 1,335,235 1,369,928 1,343,951 681,510 690,119 690,041 687,124 678,849 38,449 17,372 44,304 25,482 37,336 20,185 41,762 24,539 38,231 18,084 43,610 24,565 40,350 21,367 45,128 21,592 I 40,303 20,567 48,364 24,345 I 66,358 10,087 65,223 9,813 72,477 10,088 68,743 10,066 66,563 9,584 !l,379,715 11,370,489 1,356,189 1,363,660 11,348,244 Total. 300,495 298,192 300,586 301,465 |304,857 9,528 9,258 9,348 9,485 15,100 15,755 15,294 15,197 14,681 12,680 12,054 12,207 13,547 11,640 27,361 26,438 26,323 27,972 26,808 377,491 366,997 387,411 383,538 378,224 187,998 196,702 195,684 198,375 jl90,272 ;394,038 391,723 '394,927 1408,221 i400,373 226,793 [224,172 1219,877 1224,639 J221,474 647,381 643,581 641,352 659,881 645,040 11,240,588 11,172,001 11,094,304 11,121,945 10,992,273 1360 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. Principal resource and liability items 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. 22 to Nov. 19, 1920—Continued. 1. ALL REPORTING MEMBER BANKS—Continued. [In thousands of dollars.] Time deposits: Oct22 Oct. 29 Nov. 5 Nov.12 Nov. 19 Government deposits: Oct. 22 Oct. 29 Nov. 5 Nov. 12 Nov.19 Bills payable with Federal Reserve Bank: Secured by United States war obligations— Oct. 22 Oct. 29 Nov. 5 Nov. 12 Nov.19 All other— Oct. 22 Oct. 29 Nov.5 Nov.12 , Nov. 19 Bills r e d i s c o u n t e d with Federal Reserve Bank: Secured by United States war obligations— Oct. 22 Oct. 29 Nov.5 Nov. 12 Nov.19 All other— Oct. 22 Oct. 29 Nov.5 Nov. 12 Nov. 19 Philadelphia. Boston. New York. 159,158 162,445 164,203 153,504 133,107 474,118 458,556 458,284 455,883 452,475 39,712 39,244 39,896 39,711 39,564 380,379 382,012 383,050 385,045 386,413 11,949 7,649 4,286 2,138 13,524 73,892 30,900 17,372 8,677 75,664 15,593 10,363 5,819 2,899 11,541 15,716 10,522 5,714 9,474 24,754 2, 396 1,422 917 528 2,818 23,411 23,038 26,333 352,831 347,740 345,251 314,123 309,913 42,445 42,482 44,422 43,253 47,646 13,960 18,996 27,421 26,553 18,956 29, 084 26 583 26, 118 30 688 30, 014 36 36 36 36 600 28,289 26,942 Cleveland. Ricrjmond. Atlanta. Chicago. Minne- Kansas St. Louis. apolis. City. Dallas. San Francisco. Total. 636,621 634,764 637,848 638,514 639,184 128,767 129,235 130,283 129,563 128,042 68,747 68, 733 68,470 68,747 68,553 98,213 99,029 99,359 100,076 55,664 56,302 57,109 57,236 57,638 519,727 519,916 521,389 523,794 522,334 2,814,559 2,805,247 2,816,595 2,809,940 2,786,045 1,345 968 653 381 1,257 13,661 8,773 4,951 2,451 18,893 3,661 2,045 1,139 571 6,500 1,202 492 276 137 2,766 3,533 2,238 1,256 632 2,170 1,676 1,196 670 456 1,605 7,225 4,163 2,359 1,181 11,724 151,849 80,731 45,412 29,525 173,216 30,603 32,145 32,115 29,133 31,572 82,981 81,132 80,496 79,781 83,524 21,582 21,688 22,087 22,575 22,704 6,071 5,751 5,393 5,899 5,516 22,846 24,130 23,856 22,750 18,864 17,345 19,306 20,402 18,710 16,144 31,493 29,678 31,303 26,592 21,987 674,652 672,669 685,197 648,346 633,782 533 433 150 450 564 1,295 265 325 325 25 85 85 270 320 185 2,705 2,140 1,699 1,938 1,988 7,771 8,431 9,146 9,065 2,461 2,037 1,481 1,720 1,718 83,267 83,689 85,175 77,959 75,416 29,798 29,133 27,962 26,700 25,252 19 19 19 19 19 8 8 8 8 8 1106,199 1148,479 107,644 1148,183 108,708 ! 148,326 ! 108,696 1149,888 i 107,955 |K0,704 510 756 721 918 807 668 I 12,314 13,062 15,182 16,316 15,731 140,673 138,629 139,768 139,516 131,658 34,385 35,765 37,082 37,325 36,864 ! 9,615 10,613 8,385 8,676 8,382 4,674 4,607 4,471 4,160 3,891 10,959 10,735 10,857 10,450 10,572 16,602 16,511 15,131 14,507 16,133 8,761 7,969 7,982 1,886 2,637 2,900 2,929 2,832 45,755 52,354 56,392 59,687 68,961 423,517 459,879 465,052 498,176 432,582 27,966 I 35,799 33,564 34,747 32,025 40,397 38,505 38,000 38,044 35,304 46,264 44', 924 45,931 44,378 39,736 76,839 76,756 75,262 70,865 71,231 275,164 270,132 282,353 262,469 247,350 85,460 84,090 85,107 70,748 67,463 66,607 65,742 64,477 66,110 66,789 4,711 4,887 4,409 4,361 | 4,497 | 70,390 71,775 75,483 71,101 71,319 254,915 256,675 256,781 257,007 250,056 1,271,424 1,312,778 1,334,758 1,320,984 1,233,428 2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES. [In thousands of dollars.] Number of reporting banks: Oct. 22 Oct.29 Nov.5 Nov. 12 Nov.19 United States bonds to secure circulation: Oct.22 Oct.29 | Nov.5 1 Nov.12 | Nov. 19 | Other United States bonds, including Liberty bonds: Oct.22 Oct.29 Nov. 5 1 Nov.12 1 Nov.19 i United States Victory notes: i Oct.22 1 Oct.29 1 Nov.5 i ! Nov.12 Nov.19 1 United States certifi- j cates of indebtedness: I Oct.22 ! Oct.29 i Nov.5 | Nov.12 Nov.19 24 24 24 24 24 72 72 72 72 72 I ; ! I i 2,281 2,281 2,281 2,281 2,281 36,966 36,966 37,362 37,862 37,862 7,337 7,337 7,337 7,337 7,337 3,671 3,671 3,671 3,671 6,800 6,867 6,940 6,018 6,636 221,006 216,486 218,375 220,392 217,399 561 461 464 426 472 11,143 5,796 6,680 6,854 9,252 12 12 ! 12 i 13 13 285 285 285 287 287 8 8 8 8 8 51 51 51 51 51 13 13 13 13 13 2,776 2,776 2,776 2,776 3,671 | 2,776 3,100 3,100 3,100 3,100 3,100 1,439 1,440 1,439 1,439 1,438 9,993 9,993 9,792 9,802 9,792 2,791 2,791 2,791 2,791 2,791 4,276 4,276 4,276 4,276 4,276 4,560 16,650 4,560 16,650 4,560 16,650 4,560 16,650 4,560 16,650 22,203 23,251 22,672 22,764 23,131 7,759 7,756 7,786 7,781 7,776 4,685 4,696 4,696 4,685 4,685 1,537 1,537 1,537 1,537 1,537 16,484 16,465 17,001 17,223 18,023 5,270 5,377 5,163 5,128 5,309 1,900 1,885 1,905 1,827 1,992 8,228 8,190 8,180 8,186 8,133 6,375 6,552 6,772 6,443 6,426 74,034 74,010 73,934 74,600 74,628 6,649 6,696 6,708 6,828 7,023 2,333 2,339 2,338 2,338 2,338 153 153 153 153 153 176 176 175 175 175 11,084 11,174 11,166 11,491 11,807 536 547 547 556 528 216 216 221 216 221 2,522 2,627 2,639 2,665 2,681 860 758 758 868 905 5,966 6,068 5,843 6,053 6,145 105,090 105,225 104,946 106,369 107,076 137,753 132,558 128,188 122,620 163,286 14,816 12,506 12,248 11,996 15,253 1,646 1,438 1,392 1,378 2,168 541 530 530 530 486 532 532 507 502 502 18,377 17,745 15,836 16,540 19,029 2,654 2,580 2,876 2,596 3,489 477 563 660 387 281 2,574 2,119 2,070 2,018 1,907 1,356 1,296 1,540 1,388 2,123 12,628 11,757 11,641 11,695 15,485 204,497 189,420 184,168 178,504 233,261 95,840 95,841 96,035 96,545 96,534 38,854 341,101 39,097 338,159 41,070 342,097 40,427 | 342,411 41,730 342,777 1361 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. Principal resource and liability items 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. 22 to Nov. 19, "~0—Continued. 2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES—Continued. [In thousands of dollars.] Philadelphia. Boston. Total United States securities owned: i Oct. 22 j Oct. 29 Nov. 5 Nov. 12 Nov. 19 Loans secured by Government war obligations, including rediscounts with Federal Reserve Bank: Oct. 22 Oct. 29 Nov. 5 Nov. 12 Nov. 19 Loans secured by stocks and bonds other than United States securities: Oct. 22 Oct. 29 Nov. 5 Nov. 12 Nov. 19 All other loans and investments, including rediscounts with Federal Reserve Bank: Oct. 22 Oct. 29 Nov. 5 Nov. 12 Nov. 19 Total loans and investments, including rediscounts with Federal Reserve Bank: Oct. 22 Oct. 29 Nov. 5 Nov. 12 Nov. 19 Reserve balances with Federal R e s e r v e Bank: Oct. 22 Oct. 29 Nov. 5 Nov. 12 Nov. 19 Cash in vault: Oct. 22 Oct. 29 Nov. 5 Nov. 12 Nov. 19 Net demand deposits on which reserve is computed: Oct. 22 Oct. 29 Nov. 5 Nov. 12 Nov. 19 Time deposits: Oct. 22 Oct. 29 Nov. 5 Nov. 12 Nov.19 Government deposits: Oct. 22 Oct.29 Nov.5 Nov. 12 Nov.19 Bills payable with Federal Reserve Bank: Secured by United States war obligations— Oct.22 Oct. 29 Nov.5 Nov. 12 Nov.19 Cleveland. San Francisco. Rich- AtSt. mond. lanta. Chicago. Louis. Total. 20,785 15,405 16,365 15,579 18,641 469,759 460,020 457,859 455,474 493,175 51,005 ! 49,790 ! 48,965 i 48,925 i 52,744 15,409 15,204 15,187 15,168 15,953 8,155 8,155 8,155 8,144 8,100 5,345 5,345 5,319 5,314 5,314 47,384 46,824 45,442 46,693 50,297 18,453 18,497 18,378 18,082 19,118 5,384 5,455 5,577 5,221 5,285 ! 17,600 I 17,212 17,165 17,145 ; 16,997 13,151 13,166 13,630 13,259 14,014 74,098 73,572 75,204 74,825 80,010 746,528 728,645 727,246 723,829 779,648 39,471 38,694 39,096 38,484 38,506 422,995 410,604 411,201 411,494 394, 723 67,367 73,325 72,396 72,557 70,893 18,911 18,806 18,971 19,470 19,100 7,796 7,739 8,351 7,665 7,805 905 6,876 6,560 6,502 6,449 59,426 19,231 63,208 19,390 60,614 18,958 63,110 19,017 65,076 19,459 9,679 9,927 10,343 10,074 9,976 11,971 12,149 12,628 12,447 12,532 2,825 2,724 2,972 2,247 2,615 16,415 15,880 14,979 15,036 15,300 682,992 679,322 677,069 678,103 662,434 146,233 149,680 150,525 149,463 152,044 1,162,316 1,206,383 1,147,200 1,111,751 1,091,195 194,789 193,048 192,877 191,780 194, 808 112,386 112,345 113,748 115,984 116,392 15,439 15,324 14,788 15,444 15,383 6,452 6,422 6,607 7,129 7,327 337,961 335,184 335,479 332,762 340,590 16,277 16,264 16,473 17,126 17,013 33,750 12,605 69,104 33,643 12,597 68,957 33,360 11,946 68,192 31,994 9,729 69,337 33,410 9,644 68,755 2,195,683 2,237,960 2,179,466 2,140,134 2,134,242 593,690 ""' """ 591^016 591,049 580,161 585,456 3,682,640 3,603,496 3,595,185 3,596,333 3,563,401 519,830 517,240 520,088 518,244 513,594 308,241 309,146 311,180 311,245 309,466 82, 086 78, 589 77, 303 76, 700 74, 329 74, 532 74, 380 73, 662 72, 563 70 424 1,063,643 1,061, 798 1,051,243 1,041,162 272,416 46,560 ;183,248 270,461 47,370 185,238 272,773 45,155 185,092 265,528 .45,875 1187,559 262,304 45,338 1180,341 69,266 68,812 67, 551 69,776 68,032 490,360 7,498,821 481,873 7,391,264 479,626 7,380,462 481,381 7,355,608 489,475 7,303,322 800,179 794,795 797,035 783,687 794,647 5,737,710 ", 680,503 i,611,445 5,575,052 \ 542,494 832,991 833,403 834,326 831,506 832,039 454,947 455,501 459,086 461,8P7 460,911 13,476 09,807 08, 597 07,953 05, 617 93,234 93,023 92,148 91,508 89,514 1,520,723 1,508,859 1,503,333 1,493,808 1,497,125 398,471 396,461 398,380 390,262 177,900 179,016 177,548 178,296 177,612 1246,569 248,242 248,245 249,145 243,280 97,847 97,299 96,099 95,011 94,305 549,977 1,124,024 540,282 1,037,191 338,001 0,964,243 340,579 0,898,674 653,540 10,879,646 66,600 66,772 65,260 64,124 63;918 567,804 603,782 579,841 612,731 589,453 63,582 59,251 62,559 65,711 64,283 29,856 31,166 29,440 29,110 26,257 5,980 6,118 5,248 4,946 5,583 5,210 6,529 5,242 5,545 5,095 134,785 135,153 134,780 131,562 131,392 28,817 27,768 28,075 29,593 29,987 7,670 7,775 7,824 10,452 9,052 16,078 13,084 14,803 16,255 17,398 6,969 6,637 6,938 5,463 6,321 41,250 39,037 38,621 39,263 39,021 974,601 1,003,072 978,631 1,014,755 987,760 16,207 14,985 15,353 14,833 15,128 106,200 102,819 110,342 110,811 110,443 14,212 14,552 14,841 15,980 15,861 9,604 9,696 9,406 9,486 9,324 1,671 1,703 1,879 2,042 1,573 2,538 2,208 2,323 2,277 2,223 38,818 37,647 43,179 39,750 38,590 5,076 5,057 5,166 4,930 4,828 3,201 3,186 2,997 3,176 2,817 4,009 4,184 4,381 3,922 3,910 2,336 1,976 2,029 2,110 2,014 10,792 10,603 10,671 10,505 10,483 214,664 208,616 222,567 219,822 217,194 647,151 639,395 629,245 628,548 612,409 4,513,490 4,506,067 4,436,063 4,427,331 4,392,760 610,289 596,568 600,315 608,005 599,649 235,347 239,475 241,203 240,977 233,322 54,343 55,681 55,064 53,054 54,309 40,169 39,454 39,296 40,648 38,452 948,855 942,140 937,514 942,034 932,126 210,397 207,945 209,690 207,156 212,505 82,222 84,679 83,081 85,518 81,447 135,977 134,257 135,083 143,779 138,935 65,883 63,687 61,960 63,443 62,890 318,813 313,959 311,785 312,943 311,949 7,862,936 7,823,307 7,740,299 7,753,436 7,670,753 60,266 61,406 61,195 51,276 57,681 335,907 318,231 317,616 314,550 312,137 29,180 28,609 29,204 28,893 28,751 183,243 183,863 184,106 185,365 186,147 21,702 21,714 22,529 22,536 22,512 21,244 21,222 21,370 21,616 21,681 292,807 291,110 293,468 294,757 297,165 76,642 76,934 77,423 77,536 77,750 26,020 25,961 26,324 26,444 26,390 10,696 11,250 11,193 11,282 11,329 5,461 5,890 6,291 6,347 6,373 239,538 239,724 239,979 240,375 240,032 1,302,706 1,285,914 1,290,698 1,280,977 1,287,948 8,036 4,964 2,791 1,389 10,696 70,293 28,560 16,059 8,022 72,744 15,140 10,052 5,645 2,814 10,591 1,921 787 444 2,296 6,271 164 42 24 12 73 6,538 4,202 2,383 1,172 10,682 2,909 1,583 891 446 5,585 245 68 38 19 1,238 2, 560 1,485 834 418 1,623 1,228 822 461 349 1,510 6,835 4,099 2,306 1,151 10,687 116,318 56,996 32,058 18,193 132,015 21,299 20,031 22,057 23,072 22,614 321,429 316,266 314,797 278,594 275,092 39,261 39,638 41,573 39,424 43,485 630 1,542 2,430 1,280 1,130 1,250 1,250 1,250 25,266 24,236 23,686 23,713 25,340 12,428 12,911 12,833 13,438 13,495 527 568 550 748 11,718 12,016 11,720 9,587 9,456 4,203 4,578 5,461 4,354 3,471 17,696 15,238 16,747 15,545 13,199 461,075 451,568 454,596 418,217 416,867 449 332 182 105 j 315 5,138 4,126 3,292 6,950 6,697 88,371 88,113 88,271 87,635 87,681 1362 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. Principal resource and liability items 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. 22 to Nov. 19, 1920—Continued. 2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES—Continued. [In thousands of dollars.] Boston. Bills payable with Federal Reserve BankContinued. All other— Oct 22 Oct. 29 Nov. 5 Nov. 12 Nov. 19 Bills rediscounted with Federal R e s e r v e Bank: Secured by Unite 1 States war obligations— Oct. 22 Oct. 29 Nov.5 Nov. 12 Nov. 19 All other— Oct. 22 Oct. 29 Nov. 5 Nov. 12 Nov. 19 New York. Philadelphia. Cleveland. AtRichmond. lanta. St. Minne- Kansas Dallas. Chicago. Louis. apolis. City. San Francisco. 800 11,822 12,514 14,677 15,824 15,661 136,984 135,476 136,786 136,506 128,782 34,176 35,461 36,778 37,076 36,640 2,229 2,597 2,450 2,646 2,457 45,585 51,922 56,225 58,886 67,856 397,690 429,865 438,884 466,514 402,225 25,940 33,777 31,896 33,020 30,332 32,132 29,752 28,356 30,522 27,243 11,871 11,757 11,175 8,945 6,610 1,912 2,093 1,797 1,680 1,555 9,412 8,967 7,526 6,854 8,932 14,635 15,396 14,498 14,061 12,556 197,571 191,100 196,333 178,322 171,994 4,562 4,506 3,821 3,788 4,409 1,377 1,694 1,756 1,697 1,700 4,227 4,540 4,977 4,702 4,604 60,925 49,901 38,042 60,031 47,988 39,135 62,210 47,807 40,4fl 49,363 50,111 35,612 46,570 49,897 35,682 Total. 800 518 529 338 313 219 3,017 3,173 2,718 2,690 2,638 10,203 35,313 10,016 ?5,952 10,112 40,552 10,020 37,547" 9,314 37,896 210,236 211,550 213,624 213,776 207,597 919,808 956,691 978,509 972,923 898,175 3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES. [In thousands of dollars.] New CleveRichFranAtlanta4 Chicago St. Louis Kansas Dallas San York land mond Citv cisco, districts districts district. 3 district. district.& districts district .* district .8 district .9 Number of reporting banks: Oct.22.... Oct.29 Nov.5 Nov. 12 Nov. 19 United States bonds to secure circulation: Oct.22.... Oct.29.... Nov.5 Nov.12 Nov. 19 Other United States bonds, including Liberty bonds: Oct.22 Oct.29 Nov.5 Nov.12 Nov .19 United States Victory notes: Oct.22.... Oct.29.... • Nov. 5 Nov. 12. Nov.19.. United States certificates of indebtedness: Oct.22.... Oct.29.... Nov.5 Nov.12.. Nov. 19.. Total United States securities owned: Oct.22.... Oct.29.... Nov. 5 Nov. 12. Nov.19 Loans secured by Government war obligations, including rediscounts with Federal Reserve Bank: Oct.22.... Oct. 29 Nov. 5 Nov.12 Nov.19 Total. 11 11 11 11 11 40 40 40 40 40 18 18 18 18 18 23 23 12 12 12 12 12 18 18 18 18 18 29 29 29 29 29 13 13 13 13 13 44 44 44 44 44 208 208 208 208 1,599 1,599 1,599 1,599 1,599 25,209 25,209 25,237 25,237 25,249 5,608 5,608 5,608 5,608 5,608 6,980 7,030 7,030 7,030 7,030 1,905 1,905 1,905 1,905 1,905 5,280 5,280 5,280 5,280 5,280 5,398 5,398 5,398 5,398 5,398 7,108 7,108 7,108 7,108 7,108 13,185 13,185 13,185 13,185 13,185 72,272 72,322 72,350 72,350 72,362 10,557 10,939 10,898 11,279 11,456 43,024 41,950 41,730 41,590 42,485 9,054 9,054 9,038 9,081 9,210 22,136 22,158 22,344 22,318 22,352 18,189 17,925 17,914 17,857 19,311 7,418 7.628 1,682 7,737 7,760 9,098 9,113 9,010 8,953 8,946 7,253 7,232 7,233 7,233 7,237 21,773 23,195 21,916 21,843 22,176 148,502 149,194 147,765 147,891 150,933 2,031 2,118 2,138 2,144 2,265 13,440 13,630 13,753 13,670 13,836 2,704 2,686 2,680 2,687 2,680 2,635 2,621 2,597 2,657 2,592 19,103 18,609 18,610 18,608 18;608 2,041 2,047 2,071 2,077 2; 091 1,121 1,137 1,191 1,202 1,100 1,196 1,194 1,194 1,194 1,193 7,644 7,814 8,081 8,234 8;320 51,915 51,856 52,315 52,473 52,685 8,064 7,939 7,877 7,859 9,405 10,266 9,420 8,669 7,826 10,937 1,021 26,159 24,831 22,292 21,769 24,819 1,047 750 1,098 5,929 5,832 5,753 5,694 5,922 1,338 1,030 2,766 2,794 2,794 2,807 3,352 1,885 1,885 2,000 2,000 2,058 8,998 9,195 8.954 8,785 9,279 66,135 63,786 60,079 58,828 67,900 22,251 22,595 22,512 22,881 24,725 91,639 90,209 89,389 88,323 92,507 18,387 18,264 18,232 18,126 18,596 37,680 37,641 37,724 37,699 37,896 65,356 63,270 60,721 60,139 64,643 15,786 15,929 15,867 16,432 16,161 18,383 18,442 18,363 18,360 18,796 17,442 17,419 17,535 17,535 1 ,596 51,600 53,389 52,136 52,047 52,960 338,824 337,158 332,509 331,542 343,880 11,314 11,114 10,928 10,809 10,778 40,608 39,989 39,404 38,706 38,702 8,886 9,108 8,933 8,871 8,605 19,267 18,901 18,900 19,039 18,468 14,725 16,020 15,618 15,698 15,335 11,169 11,386 11,346 11,471 11,960 11,242 11,011 11,326 11,383 11,920 3,019 2,921 2,559 2,395 2,795 17,242 17,184 16,978 16,401 17,169 137,472 137,634 135,992 134,773 135,732 916 906 23 23 23 974 834 208 1363 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. Principal resource and liability items 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. 22 to Nov. 19, 1920—Continued. 3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES—Continued. [In thousands of dollars.] FranNew CleveRichDallas Sancisco, Atlanta Chicago St. Louis6 Kansas City land mond York districts district .2 district.s district.* district.5 district. district.? district.* districts Loans secured by stocks and bonds other than United States securities: Oct. 2 2 . . . . Oct.29.... Nov.5 Nov. 12 Nov. 19.. All other loans and investments, including rediscounts with Federal Reserve Bank: Oct. 2 2 . . . . Oct.29 Nov. 5 Nov. 12 Nov. 19. Total loans and investments, including rediscounts with Federal Reserve Bank: Oct. 2 2 . . . . Oct.29.... Nov.5 Nov. 12. Nov. 19 Reserve balances with Federal Reserve Bank: Oct.22.... Oct. 29 Nov.5 Nov. 12. Nov.19.. Cash in vault: Oct. 2 2 . . . . Oct. 2 9 . . . . Nov.5 Nov. 12 Nov. 19 Net demand deposits on which reserve is computed: Oct. 22 Oct. 29 Nov.5 Nov. 12 Nov. 19 Time deposits: Oct. 22 ! Oct. 29 j Nov.5 Nov. 12 Nov. 19 Government deposits: | Oct. 22 | Oct. 29 ! Nov.5 ! Nov. 12 Nov. 19 ! Bills payable with Federal Reserve I Bank: | Secured by United States war obli- i gations— Oct. 22 Oct. 29 Nov. 5 Nov. 12 Nov. 19 All other— Oct. 22 Oct. 29 Nov.5 Nov. 12 Nov. 19 Bills rediscounted with Federal Reserve Bank: Secured by United States war obligations— Oct. 22 Oct. 29 Nov.5 Nov. 12 Nov. 19 All other— Oct. 22 Oct. 29 Nov.5 Nov. 12 Nov.19 Total. 53,672 55,541 54,973 56,087 56,225 154,858 153,736 157,931 151,992 152,767 31,840 31,821 31,984 31,876 32,372 39,762 38,894 38,624 38,529 39,987 59,294 58,446 58,091 57,687 57,311 47,277 36,423 36,479 35,716 36,683 28,515 29,223 29,083 28,924 30,741 14,717 15,963 15,716 15,825 15,775 68,202 69,596 70,959 70,382 71,636 498,137 489,643 493,840 488,018 493,497 193,951 191,552 193,956 193,465 192,355 497,292 497,445 501,529 489,983 489,881 121,676 120,680 118,996 119,414 117,414 263,508 283,871 262,166 260,881 255,372 350,852 353,120 350,559 351,294 340,059 120,287 120,608 120,245 118,266 117,423 202,779 204,913 204,420 202,755 199,097 85,354 83,223 82,679 81,016 78,785 470,436 475,036 470,229 473,752 471,925 2,306,135 2,310,448 2,304,779 2,290,826 2,262,311 281,188 280,802 282,369 283,242 284,083 784,697 781,379 788,253 769,004 773,857 180,789 179,873 178,145 178,287 176,987 360,217 359,307 357,414 356,148 351,723 490,227 490,856 484,989 484,818 477,348 194,519 184,346 183,937 182,885 182,227 260,919 263,589 263,222 261,422 260, 554 120,532 119,526 118,489 116,771 114,951 607,480 615,205 610,302 612,582 613,690 3,280,568 3,274,883 3,267,120 3,245,159 3,235,420 16,432 16,224 13,858 15,807 15,304 56,109 55,461 58,316 54,291 57,398 12,819 13,837 12,214 11,105 12,461 16,621 19,233 17,160 18,005 16,801 25,356 27,030 26,086 25,909 25,323 8,534 8,576 9,347 9,619 9,274 17,735 17,420 17,175 17,736 18,651 8,406 8,348 8,089 7,581 8,140 41,182 40,738 41,251 40,261 39,757 203,194 206,867 203,496 200,314 203,109 3,353 3,063 4,020 3,604 3,534 16,266 15,688 17,866 15,989 17,578 6,212 5,864 6,190 6,315 6,250 7,414 8,258 7,617 7,452 7,329 12,388 11,462 13,146 12,519 12,015 4,072 3,882 3,906 4,145 3,762 6,378 6,589 6,366 6,573 6,342 3,645 3,298 3,338 4,176 3,307 14,667 13,939 13,877 15,163 14,444 74,395 72,043 76,326 75,936 74,561 168,578 165,637 169,017 166,229 163,555 540,187 533,418 539,931 525,822 530,010 111,807 112,613 110,790 109,195 108,905 159,146 157,237 157,104 159,409 158,935 198,371 196,227 187,524 191,498 190,156 79,121 79,253 79,762 83,073 81,007 146,539 146,479 147,650 149,731 152,175 66,366 67,329 65,405 65,767 66,977 297,374 297,946 298,237 314,278 301,090 1,767,489 1,756,139 1,755,420 1,765,002 1,752,810 67,510 68,589 68,570 69,771 69,752 117,928 118,319 118,624 119,000 119,301 19,210 19,229 19,013 19,006 18,884 88,009 87,920 87,817 89,181 89,983 225,335 224,652 225,081 223,808 222,104 42,608 42,745 43,336 42,480 40,803 58,713 58,939 60,733 60,869 61,156 22,844 22,934 23,175 23,323 23,397 266,261 266,309 267,483 269,151 268,089 908,418 909,636 913, 832 916,589 913,469 2,684 1,899 1,066 533 1,985 13,182 9,337 5,047 5,664 16,384 1,250 710 527 310 1,709 1,081 823 568 313 938 4,465 2,925 1,644 747 462 248 125 915 522 464 261 131 509 441 374 209 107 67 370 59 50 29 338 24,742 17,053 9,620 8,034 29,245 16,955 15,675 17,091 17,851 19,188 11,311 15,189 24,155 22,643 14,527 7,270 7,027 6,886 8,118 7,286 24,903 26,398 26,238 23,452 25,859 35,593 35,067 33,858 33,149 35,315 6,855 7,915 8,115 7,630 5,760 12,194 13,002 13,118 9,683 7,699 131,360 137,166 146,876 140,571 129,729 85 85 270 320 185 1,336 1,071 1,513 1,452 878 1,548 1,567 1,523 1,501 1,689 32,071 32,152 29,947 29,595 29,285 30,085 30,787 30,015 28,880 29', 169 187,266 186,896 189,918 181,606 173,512 822 6,400 8,827 8,525 8,952 8,785 8,857 7,452 8,368 8,463 9,260 5,238 495 265 325 325 25 756 721 918 1,872 1,887 1,817 6,599 7,085 5,092 5,292 5,255 2,648 2,791 2,515 2,315 1,960 7,384 7,132 7,455 7,119 7,287 4,159 4,551 4,627 4,659 4,263 4,302 4,255 4,148 4,194 4,478 1,909 1,882 2,082 2,116 1,962 926 817 633 512 574 10,742 14,348 11,046 14,713 15,575 4,749 4,899 5,947 3,545 4,171 15,405 14,379 14,983 15,746 14,105 50,386 49,501 48,647 45,218 46,372 14,145 13,837 21,734 20,114 13,596 23,350 23,004 22,080 20,775 20,306 28,785 26,953 26,893 25,155 23,570 9,619 9,188 8,573 7,460 6648 6,648 2,596 2,072 1 Buffalo. 2 Cincinnati and Pittsburgh. 34 Baltimore. New Orleans, Jacksonville, Nashville, and Birmingham. * Detroit. 6 Louisville, Memphis, and Little Rock. i Omaha, Denver, and Oklahoma City. s9 El Paso and Houston. Spokane, Portland, Seattle, Salt Lake City, and Los Angeles. IMPORTS AND EXPORTS OF GOLD AND SILVER. 00 Gold imports into and exports from the United States, distributed by countries. Exports. Imports. Belgium.. Denmark France Germany Greece Iceland Italy N et h erlands Norway Portugal Russia in Europe Spain Sweden Switzerland United Kingdom: England Scotland $13 834 257 2,781,071 6,515 $299,329 354 944 26,663,950 Total EuroDp 29,820,571 Total North America During 11 days ending Oct. 31, 1920. During month of October, 1920. $13,834 257 3,080,400 6,515 During 10 days ending Nov. 10, 1920. $1,900 2,490,710 1.158 British Honduras Canada Costa Rica Gnatftmala. Honduras Nicaragua Panama Salvador Mexico Newfoundland Cuba British West Indies Virgin Islands of United Statps Dominican Republic Dutch West Indifis Haiti Argentina Bolivia Brazil Chile Colombia Ecuador British Guiana Dutch Guiana Peru . . . . Uruguay Venezuela During 10 days ending Oct. 20, 1920. •218,382,243 42,671,893 111,871,035 15,973,370 244,687,088 12,295 22 534 53 440 '271 118 023 1,255 46,121 194,668 44,395 122,565 306,258 271 361,929 221 328 48,793 328 26,293 147,507 4,680 130,367 15,070 120 51,906 10 847,479 1,345 17,870 151,902 178,162 34,438 277,514 15,000 3,552,896 13,235 2,082,824 4,070,138 268,014 36,564,154 5,015,216 10,000 4,616,223 45 20 33,378,901 33,834,920 611 479 575,024 8,267 14,872 258,255 229,497 1,080,335 1,208,178 3,401 498,312 681,594 1,057,938 4,153,275 3,983,132 61 221 5,085 15,090 18,838 260,347 525 4,800 5,200 539,649 23 789,983 41,808,304 40,618,935 496 8,221 16,022 1,724,416 32,929 11,985 44,578 8,221 5,750 1,207,770 1,707,682 7,374 43,765 380,664 6,545,251 523,893 146,177 23,399 1,043,309 102,158 1,069 26,200 218,060 552,024 379,911 120,554 20,144 709,531 325,164 912 241,263 28,070,000 661 67,570 2,276,445 60,050 $10,000 2,604 1,123,918 23,672 15,454 14,324 $31,900 2,002,666 4,016,019 95,000 25,495 10,959 1,940 777,026 During 10 From Jan. From Jan. days end1 to Nov. 1 to Nov. ing Nov. 10, 1919. 10, 1920. 10, 1920. $422,242 4,800 182,273 10 U,304 262,726 344,864 35,907 During 11 During days end- month of October, ing Oct. 1920. 31, 1920. 40,107 1,163,121 3,324 25,364 1 268 631 238,322 714 610 4,937 108,326,617* 13,079,548 1,155,097 49,505 221 42,585 358 627 $352,864 199,551 22,158,754 6,515 128,700 42,309,743 667,261 4 502 326 824 Total South America 24,489 62,821 354,944 471 243 7 784 496 . . 62,821 10 From Jan. From Jan. During end1 to Nov. 1 to Nov. days ing Oct. 10, 1930. 10, 1919. 20, 1920. 45,767 74,870 122,160 8,557 494,832 258,711 651 filQ 1,356,661 2,241,393 896,510 10,916,346 2,388,362 $m,499 $171,167 $595,785 $128,587 19,000 263,050 20,000 17,705,798 21,300 16,500 390,000 3,098,020 7,756,592 77,250 617,249 25,000 75,000 500,000 5,000 5,000 10,000 44,000 10,000 278,417 1,293,034 23,314,014 15,926,575 89,995,000 32,960,000 2,500,000 425,000 100,000 4,953,620 157,331 7,940 • 394,549 50,000 50,000 285,918 30,000 30,000 280,000 400,000 700,000 236,000 6,300 3,653,376 12,850,000 184,000 5,005 19,795 2,893,369 7,405,000 11,232,220 108,304,676 62,494,009 % to d China Chosen (Korea-) - • British India Straits Settlements Dutch East Indies French East Indies Hongkong Japan Russia in Asia 176 573 Total Asia Australia New Zealand Philippine Islands British East Africa British South Africa British West Africa Portuguese Africa 1,260 -176,573 176,573 . Total, all countries Excess imports or exports . . 82,971 56,834 15,853 123,868 72,687 2,849,567 3,416,333 30,191,910 10,000,000 33,042,737 176,573 486,650 63,348 45,786 486,650 1,734,227 818,685 423 423 31,636,047 45,168,325 116,762,001 18,256,070 18,144,148 38,156,603 90,830,762 6,218,451 1 ijil' 3,000,000 28,286,750 32.656.908 8,630 8,630 6,512.371 6,683,454 12,065,105 2 290 000 29,243,862 27,630.133 1,194,667 6,521,000 259,510 9,829,210 13,418,047 13,097,350 133,300 6,600,005 510,360 21,069,215 208.850 11,512 851 6,733,305 24,588,205 11,721.701 SO 2 9 3 OQ1 31,573,046 73,578,715 23,000 165,374,633 173,177,469 1 i ; •; 683,123 489,173 499,324 333,774,818 62,175,252 102,500 240 ; 8 150 280,358 36,474,035 3,000,000 39,446 13,491,899 7,011,722 | • 1 Excess of gold exports over imports since June 10, 1919, $284,790,000. 25,931,239 i 12,037.619 2 297,300,783 288,264,947 226,089,695 I Excess of gold imports over exports since Aug. 1, 1914, $816,229,000. 1 Includes: Ore and base bullion, $15,023,000; United States Mint or Assay Office bars,$3,846,000; other bullion, refined, $247,062,000; United States coin, $16,210,000: foreign coin, $51,628,000. 2 Includes: Domestic exports—Ore and base bullion, $11,000; United States Mint or Assay Office bars, $34,979,000; other bullion, refined, $1,063,000; coin, $200,179.000. Foreign exports—Bullion, refined, $498,000; coin, $571,000j ft ft w Oi Silver imports into and exports from the United States, distributed by countries. Exports. Imports. During 10 days ending Oct. 20, 1920. Belgium.. Denmark Finland France Greece Italy Netherlands Norway Portugal Spain Sweden. Switzerland United Kingdom—England British Honduras.. Canada Costa Rica •Guatemala 'Honduras 'Nicaragua Panama •Salvador Mexico "Newfoundland . British West Indies Cuba Virgin Islands of United States Dominican Republic ^Dutch West Indies IFrench West Indies. . . . . . . Haiti 2,760 42,240 $42,240 1,834 $32,428 $1,797 112,153 42,240 24,026 ,54,861 14,453 7,978 69,682 31,395 17,176 $599,857 17,438 6,588,197 $32,920 1,092,497 1,219,430 1,950 228 1,979 11,088 14,164 1,725 816,950 37,824 $146,605 $81,190 $227, 795 $2,500 4,821,678 55,162 85,265 5,228 1,206,166 56,797 146,605 81,190 227,795 2,500 4,909,55S 25,127,512 5,730 58,709 5,730 147, 753 3,882 39,941 2,014 145,649 51,639 6,508,950 4,415,618 >1 532, die 36,419 3,902 30,782 2,622,626 5 5,400 177,550 25 6,938 9,900 808,037 4,500 391,510 3,000 542,000 ft 11 56 667,542 5,123 30 230 77 77 1,148,623 732,155 3,388,540 216,218 25,000 940 357,301 13,859 251,298 940 528,672 49,399 8,090 3,829 35,177 2 941 1 1 I j 1 I $3,503 During 10 10 During 11 During Jan. From Jan. From Jan. From Jan. During end- days end- month of days end- From 1 to Nov. 1 to Nov. 1 to Nov. 1 to Nov. days ing Nov. ing Oct. October, ing Oct. 10, 1919. 10, 1920. 10, 1919. 10, 1920. 10, 1920. 31, 1920. 1920. 20, 1920. 28,256 200 . . During 10 days ending Nov. 10, 1920. 111, 430 172,203 15,324,282 5 123 Total South America 2 010 235,167 18,137 1 576 30 782 812^ 815 Argentina Bolivia Brazil Chile •Colombia Ecuador British Guiana Dutch Guiana Peru Venezuela... China Chosen (Korea) British India Dutch East Indies French East Indies Hongkong Japan $24,267 44,348 535 . During month of October, 1920. $24,267 1,834 Total Europe Total North America During 11 days ending Oct. 31, 1920. CO 866,855 7,429 13,000 i 388 4 322 626 1 100,000 395,330 41 516, 752 85 542, 852 358,165 792,471 1,355,236 568,617 5,343 | 81,553 255,637 69,097 3,355,418 6,230,640 153,672 62,802 8 24,534 2,280,610 2,575,241 742,4S0 632,590 89,273 148,199 355,757 3, 725, 765 48,225,248 52,854,154 11 6,225 7,017 59.374 71,638 1,105 120,800 300 2,097 20 77 61,446 108,487 2 155 1, 571,180 j 196 170 13, 670 121 265 , 7,600,266 598 16,050,136 9,554,358 3 328 j 90,120 72,723 181,112 741 8,535 9,276 4, 500 50,000 54,500 26,050 3,047, 074 3,000 27.356 1,250,904 25,000 316 000 184,045 | 141,835 585 390,537 80,694 10,328 161 150,000 585 6,205,060 12, 723 2,230 852 2,000 1 j 1,402 2,493 5,063 10,000 50,000 585 585 26,458 62,638 283,627 2,824,081 59,241,013 39,351,245 223,211 109,180,718 431,469 1,829, 734 4,058.373 20,610,359 3,848,251 6 369,880 3,946,453 1,543,116 i 113,284 1,191,500 I ! ! ! 12,125,294 2,333 > 1 271 399 249,250 1,500 1,195,253 9,000 j i 35,492 1 2fiO. 812 1,621 3; 139J 526 fiQ4 2fi3 65,753 42 6,390 10,846,052 185 1,650 j j 63,323,877 j 1,295,317 52,787 46,474 58, 725,912 2,408,890 81,553 54,960 206,253 638,234 164,740 416,005 ir Russia in Asia... Turkey in Asia... Total Asia. New Zealand... Philippine Islands... British South Africa. British West A frica.. Portuguese Africa Total, all countries... Excess imports or exports. 970 52,759 87,982,177 158,901,055 38,511 81,553 81,553 5,343 3,744,368 50 1,151 50 1,406 228 519 11,992 17,777 6,097 586 10,505 76,822 93,321 52,252 255 1,546,444 | 2,576,183 1,128,114 4,400 1,617,798 1,580,043 186,109 4,912,050 1,446,790 | 179,855,769 782,851 74,621,611 I 2,869,023 1,251,225 5,085,284 4,400 1,393,934 580,745 11,880 5,708,601 663,939 2 105,055,367 190,296,265 796,551 25,199,598 115,674,624 Excess ol silver exports over imports since Aug. l, iyi4, $45i,o/i,uuu. 1 Includes: Ore and base bullion, $63,040,000; United States Mint or Assay Office bars, $3,000; other bullion, refined, $7,031,000; United States coin, $1,831,000: foreign com, $7,951,000. :ports—ore and 2 Includes: Domestic exports—ere and base bullion, $16,000; United States Mint or Assay Office bars, $4,348,000; other bullion, refined, $60,073,000; coin, $14,537,000. Foreign exj base bullion, $1,000; bullion,refined, $21,756,000; coin, $4,324,000. 1368 FEDERAL RESERVE BULLETIN. DECEMBER, 1920. General stock of money in the United States, money held by the Treasury and the Federal Reserve System, and all other money in the United States, Nov. 1, 1920. General stock. Gold coin (including bullion in Treasury) Gold certificates Standard silver dollars Silver certificates Subsidiary silver 1 Treasury notes of 1890 United States notes Federal Reserve notes Federal Reserve Bank notes National-bank notes Total: Nov. 1,1920.. Oct. 1,1920. Sept. 1,1920. Aug. 1,1920. July 1,1920. Jan. ,1920.. July ,1919.. Jan. ,1919.. July ,1918.. Jan. ,1918.. July 1,1917. $2,739,043,566 ! \ 1 j | ! ! ! 269,857,494 264,697,830 Held in the United States Treasury as assets of the Government.1 Held outside Held by or for States Federal Reserve United Treasury and Banks and Federal Reserve agents. System. $435,891,220 j 2 $1,324,328,816 325,600,190 »26,646,010 77,837,252 3,141,698 '"i3," 636," 962* 346,681,016 3,663,517,685 238,601,900 732,549,629 8,181,712 i 23,750,109 3,680,824 ! 15,323,030 * 60,763,726 292,952,755 23,661,882 2,203,015 8,254, 949,120 8,136, 332,855 7,997, 080,820 7,927, 844,377 7,887, 181,586 7,961, 320,139 7,588. 473,771 7,780; 793,606 6,742, 225,784 6,256; 198,271 5,480! 009,884 503,605,555 ! 472,464,953 \ 485,884,277 I 483,824,265 | 485,057,472 | 604,888,833 ! 578,848,043 I 454,948,160 j 356,124,750 j 277,043,358 253,671,614 j 2,133, 993,646 2,110, 500,713 2,031, 514,938 2,059, 010,192 2,021. 271,614 2,044; 422,303 2,167. 280,313 2,220', 705,767 2,018! 381,825 1,723!,570,291 1,280!1,880,714 Amount per capita outside United States Treasury and Federal Reserve System. $421,819,032 231,404,308 89,721,794 60,384,609 261,556,132 1,627,867 277,735,578 3,346,814,821 211,259,194 715,023,584 5,617, 349,919 5,553, 367,189 5,479, 681,605 5,385, 009,920 5,380, 852,500 5,312 009,003 4,842! 345,415 5,105! 139,679 4,367 739,209 i 4,255 584,622 i 3,945 457,556 i $52.26 51.70 51.06 50.22 50.19 49.81 45.00 47.83 41.31 40.53 37.88 1 Includes reserve funds held against issues of United States notes and Treasury notes of 1890 and redemption funds held against issues of national-bank notes, Federal Reserve notes, and Federal Reserve Bank notes, but excludes gold and silver coin and bullion held in trust for the redemption of outstanding gold and silver certificates and Treasury notes of 1890. 2 Exclusive of amounts held with United States Treasurer in gold redemption fund against Federal Reserve notes, and of gold held with foreign agencies but inclusive of balances in gold settlement fund standing to the credit of the Federal Reserve Banks and agents. 3 Includes subsidiary silver. < Includes Treasury notes of 1890. FEDERAL RESERVE BANK DISCOUNT RATES. Rates on paper discounted for member banks approved by the Federal Reserve Board up to Dec. 1, 1920. Paper maturing within 90 days. Federal Reserve Bank. Secured b y Treasury Liberty bonds certificates of and Victory indebtedness. notes. Boston New York.... Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis.. Kansas City.. Dallas San Francisco 51 ?6 6 6 6 Trade acceptances. Commercial paper n. e. s. Bankers' acceptances maturing within 3 months. Agricultural and live-stock paper maturing after 90 days, but within 6 months. 7 7 6 51 6 7 7 6 1 Discount rate corresponds to interest rate borne by certificates pledged as collateral, with minimum of 5 per cent in the case of Philadelphia, Atlanta, Kansas City, and Dallas, and 54 per cent in the case of Cleveland, Richmond, Chicago, and San Francisco. 2 5J per cent on paper secured by §\ per cent certificates and 5 per cent on paper secured by 4J and 5 per cent certificates. NOTE.—Rates shown for St. Louis, Kansas City, and Dallas are normal rates, applying to discounts not in excess of a basic linefixedfor each member bank by the Federal Reserve Bank. Rates on discounts in excess of the basic line line are j subject to a £ per cent progressive increase for each 25 per cent by which the amount of accommodation extended exceeds the basic line. INDEX TO VOLUME 6. Page. Abstract business of a national bank under section 11-k 385 Acceptances: Acceptance liabilities of member banks 158, 686 Agencies of national banks for purpose of accepting drafts 835 Automobile paper 65 Banks granted authority to accept up to 100 per cent of capital and surplus 60,159, 382, 492, 608 697, 833, 945,1063,1175,1300 Bankers', definition of 1180 Collection of 699 Conference of bankers with Board relative to acceptance credits ^ 559 Cotton factor, paper 162 Dollar exchange drafts 835 Documentary drafts, bankers' acceptances secured by 610 Domicile bills 386 Draft drawn on foreign buyer 610 Draft drawn by an American manufacturer for financing purchase of goods from a foreign seller 162 Draft drawn by a cotton factor 162 Draft drawn for purpose of furnishing dollar exchange 835 Draft, renewal of 66, 277 Draft secured by warehouse receipt covering automobiles and automobile tires 65 European banks, 1913, 1918, and 1919 374 Foreign buyer, draft drawn on 610 Foreign seller, draft drawn by an American manufacturer for financing purchase of goods from 162 Growth in acceptance market 559, 666 Held by Federal Reserve banks each month... 93, 193, 307, 416, 532, 642, 741, 873, 985,1102,1233,1349 Mississippi law authorizing State banks to accept drafts and bills of exchange 701 Purchased by Federal Reserve b a n k s Distributed by maturities— Three months ending December, 1919. 191 Three months ending March, 1920. . . . 530 Three months ending June, 1920 870 Three months ending September, 1920. 1231 Distributed by rates of discount— Three months ending Nov. 30, 1919... 92 Three months ending Feb. 29, 1920... 414 Three months ending May 31, 1920. . . 742 Three months ending Aug. 31, 1920... 1104 Each month 91, 93,191, 193, 306, 413, 415, 530, 532, 641, 642, 740, 741, 870, 873, 984, 985, 1101, 1102, 1231, 1233, 1349 Regulations of Board regarding 1181,1182 Renewal acceptances 65, 66, 276, 277 Shipping documents, acceptances against. .. 66,1301 Texas law authorizing trust companies to accept drafts and bills of exchange 950 Trade acceptance as actual security 1065 Accommodations granted by city banks to correspondents, methods followed 584 Acts: Amending Clayton Antitrust Act 813 Amending Federal Reserve Act— ' Sec. 14—Progressive discount rates 448, 498 Sec. 25a—Corporations engaging in foreign banking (Edge Act) 56 Making gold certificates legal tender 60 Mississippi law authorizing State banks to accept drafts and bills of exchange 701 Mississippi law relating to par collections 387 Texas banking laws authorizing trust companies to acept drafts or bills of exchange 950 Administrator, executor, etc. (See Fiduciary powers.) Advertising: Right of national bank having trust powers to use the words "trust company" as part of corporate title 497 State bank member that it is under Government supervision 65 Advisory Council, Federal: Conferences with Board. 224, 556, 579,1019,1123,1263 To discuss credit situation 556, 579 Recommendations on interest and discount rates 224 Report to Board relative to credit control.. 581,583 Agencies of national banks for purpose of accepting drafts 835 Agencies, foreign branch. (See Foreign branches.) Agricultural implement industry, terms of sale in.. 1149 Agricultural paper: Definition of 1180,1301 Held by Federal Reserve banks each month.. 93,193, 307, 415, 532, 641, 741, 872, 985,1102,1233,1349 Regulations of Board on discount of 1180 Amendment to section 8 of Clayton Act 813 Amendments to Federal Reserve Act: Section 14—Graduated discount rates 448,498 Section 25a—Corporations engaging in foreign banking (Edge Act) 56 Amendments to State banking laws. (See State banking laws.) American Bankers' Association: Address of Secretary of Treasury before 1123,1125 Ileport of committee of, on McFajdden gold bill. 1147 American Foreign Banking Corporation, New York City, foreign branches of 272, 607, 944,1298 American investments abroad 687,777 Anglo-French loan 1129 Annual report of Board, extract from, relative to credit control 223, 239 Argentina: Banking and financial conditions in 592 Credit to allies 596 Deposits, capital, etc., of principal banks in, 1914-1919 599, 600 Exchange rates on foreign countries, 1914-1920. 598 Gold reserves 1297 Monetary system 593 Public debt 596 Resources and liabilities of Banco de la Nacion. 597 Asia Banking Corporation, New York City, foreign branches of 272,607,944,1298 1369 1370 INDEX TO VOLUME 6. Page. Banking laws, amendments to—Continued. Page. Assets and liabilities. (See Condition statements.) Texas law authorizing trust companies to accept Australia: drafts and bills of exchange 950 Wholesale prices in, index of 511, 621, Belgium: 711,849, 961,1079,1208,1323 Budget 1322 Note-issue department of Commonwealth Gold reserves of Bank of Belgium 144 Bank 1321 Bills discounted and bought. (See Discount and Austro-Hungarian Bank, gold reserves 144,1297 open-market operations.) Automobiles and automobile tires: Bills of exchange: Acceptance of drafts secured by warehouse Practice of handling in foreign countries 269 receipts covering 65 Regulations of Board on discount and purTerms of sale in the industry 258-261 chase of 1179,1181,1182 Balance of trade. (See Imports and exports.) Blankets, woolen, terms of sale in the industry 470 Bank notes. (See Federal Reserve bank notes; Bonds: National bank notes.) Foreign, prices of 450 Bank of Belgium, gold reserves 144,1297 liberty, prices of 446, 555 Bank of Denmark, gold reserves 1297 Purchases by Treasury suspended 445 Bank of England: Bonuses to soldiers 340 Condition statements 334, 893 Books in Federal Reserve Board library 701, 834, 946 Discount rates 446,1070,1199,1312 Books, terms of sale in the industry 1037 Gold reserves 144,1297 Boots and shoes, terms of sale in the industry 930 Note circulation 485, 842, 954,1069,1199,1312 Boyden, R. W., remarks by, before Brussels interReserves, circulation, and security holdings, national financial conference 1292 December, 1917-March, 1920 485 Boundaries of sixth and eighth Federal Reserve Bank of France: districts, changes in 59 Condition statements 334, 893,1073,1203,1315 Branches, foreign, of American banks 63,159, 272, 382, Deposits, note circulation, and reserves 218, 492,606, 944,1174,1299 1073,1203,1315 As of February 18, 1920 272 Gold reserves 144,1297 As of May 18, 1920 606 Report of, for year 1919 372 As of August 18, 1920 944 Reserves, circulation, and security holdings, As of November 18, 1920 *. 1298 December, 1917-March, 1920 485 Branches of Federal Reserve banks: Bank of Japan: Directors, election of 61,159 Gold reserves 145,1297 Los Angeles branch, opening of 60 Note circulation 1077 Oklahoma City b r a n c h Bank of Java, gold reserves 145,1297 Authorized 62 Bank of the Netherlands: Directors chosen 159, 782 Condition statements 336, 894 Opening of 782 Gold reserves 145,1297 Brazil: Bank of Norway: Assets and liabilities of banks in 821-824 Condition statements 45 Economic and financial conditions in 813 Gold reserves 145,1297 Exchange rates at Rio de Janeiro, 1914-1919... 819 Bank of Roiimania, gold reserves 144,1297 Foreign trade 815 Bank of Spain: Monetary system 814 Condition statements 335, 895 Note circulation 815 Gold reserves 145,1297 Public debt 819 Bank of Sweden: Brick industry, terms of sale in 938 Condition statements 45 Brussels international financial conference 1129, Gold reserves 145,1297 1277-1293 Bank of Switzerland, gold reserves 145,1297 Boyden, R. W., remarks of 1292 Bank premises, cost of 135, 830 Cassel, Gustav, report of ,. 1277 Bank transactions—debits to individual account: Delacroix, M., memorandum of 1281 January, 1919-May, 1920 603 Pigou, A. C, memorandum of 1282 November, 1918-March, 1920 483 Report of conference 1288 1919-1920 1259 Resolutions adopted 1283 Weekly 84,185, Builders' supplies, terms of sale in the industry 939 297,407, 524, 635, 733, 863, 978,1095,1225,1342 Building activity, reports on, by Federal Reserve Bankers' acceptances. (See Acceptances.) agents 682 Banking and financial conditions: Building materials, notes for, eligibility for redisDiscussion of 10,120, 222, 347, 454, count 699 565, 671, 781, 910,1018,1133,1259,1262 Building operations, loans for 927 Index of, January, 1918-March, 1920 479 Business conditions: Review, year 1920 662-670, 723-733,1253-1261 Indexes of 474 Banking laws, amendments to: In the several districts . . . . 13,122, 225, 349, 456, 567, Section 8, Clayton Act 813 673,783,912,1020,1135.1264 Section 14, Federal Reserve Act—-progressive Review, year 1920 1254-1260 discount rates 448, 498 Business failures. (See Commercial failures.) Section 25a, Federal Reserve Act—Edge Act.. 56 Call loan rates: Making gold certificates legal tender 60 In New York market, October, 1918-August, Mississippi law authorizing State banks to ac1920 942 cept drafts and bills of exchange 701 Memorandum of Federal Reserve agent of New Mississippi law relating to par collections 387 York on 369 INDEX TO VOLUME 6. 1371 p Page, Call loan rates—Continued. age. Chemical industry, terms of sale in 1157 Reply of Board to Senate resolution relative to 345,368 Chile: Condition of banks in 1055-1061 Call report, Comptroller of the Currency 442 Economic and financial conditions in 1052-1061 Canada: Exchange rates on foreign countries 1055 Gold reserves 1297 Exports 1054 Wholesale prices in, index of... 32,167, 282, 392, 510, Public debt 1056 621, 712, 849, 962,1079,1209,1323 Trade with foreign countries 1044 Canals at Sault Ste. Marie, commerce of.. 83,184, 733, 985, ]031 1094,1224,1339 China industry, terms of sale in Circulation, currency: Cancellation of orders, reports on, by Federal ReAbroad, discussion of 6, 667, 902, 909, 928 serve agents 679 Bank of England 485. 842, 954,1069,1199,1312 Capital: Bank of France 485,1203,1315 European banks, 1913, 1918, and 1919 374 Bank of Japan 1077 Federal Reserve banks—• Banks in allied, central, and neutral countries, Increase or decrease in, regulations of Board 1187 1914-1920 488 regarding .--•--.-. Brazil 815 (See also Resources and liabilities.) Chile 1052 National banks, increase or decrease in 62, 160, 274, 383, 492, 609, 697, 833, 946,1064,1175,1300 Federal Reserve notes— July, 1919-June, 1920 146 State banks admitted to membership 62,159, Weekly 100, 200, 317, 273,383,492, 607, 697, 833, 945,1063,1174,1299 425, 540, 649, 751, 880, 993,1111,1240,1356 (See also Condition statements.) German Reichsbank 486, 847,1317 Carpets, wool, terms of sale in the industry 471 League of Nations on 898, 901, 909 Case, Justice, opinion by, on exercise of trust powers Per capita in the United States— by national banks located in Connecticut 610 By months 109, 210, 327, Cassel, Gustav, remarks by, before Brussels inter435, 551, 659, 762. 890,1004.1121,1250,1368 national financial conference 1277 July, 1919-June. 1920 730 Cement industry, terms of sale in 938 Reform In India....' 253,1298 Certificate of deposit: Reserves against Federal Reserve note circulaForm of 495 tion 146 Time, subject to rules and regulations of savings Resolution of Senate regarding 558, 582 department 1065 Clayton Antitrust Act: Certificates of indebtedness: Amendment to section 8 813 Allotments of Treasury loan and tax certificates, As applied to private bankers 948 July, 1919-June, 1920 729 Regulations of Board under 1193 Issues of 1, 339, 445. 553, 661, 769, 897,11*23,1253 Maturities 99,199, 316, 424, 540, Clearing and collection: Collection of bill of lading draft received from 649, 751, 879, 992,1110,1239,1355 nonmember bank for account of member Chapman, W. T., resignation as secretary of Federal bank 948 Reserve Board 1134 Collection of check drawn on a member bank Charges, collection. (See Clearing and collection.) forwarded by another member bank with Charters issued to national banks 62,160, 274, 383, instructions to remit to a Federal Reserve 492, 609, 697, 833, 946,1064,1175,1300 Bank 494 Charts: Collection of maturing items for the account of Cash reserves and excess reserves of Federal Reanother Federal Reserve Bank 276 serve banks during 1919 147 Collection of notes and acceptances 699 Debits to individual account, January, 1919Exchange charges on member bank's own May, 1920. . 605 acceptance 162 Deposit liabilities of national banks 727 Governor of Board to Member of Congress reDeposits, notes, and reserves of Federal Reserve garding 489 banks 725 Growth of the system 310, 724,1016 Discount and interest rates in New York Interdistrict time schedule 746, 987 market, October, 1918-August, 1920 942 Map showing States on par list 94, Earning assets of Federal Reserve banks 725 194, 308, 419, 535, 644 Exchange rates— Mississippi law relating to par collections 387 Denmark 41 Number of banks on par list— New York, on allied, neutral, and silver By months 94,194, 308, 418, 534, 643, standard countries 51, 52,1159,1161 745, 874, 986,1105,1234,1350 Sweden 41 July, 1919-June, 1920 724 Growth of "clearing and collection system 312 Operations of system— Interreserve bank discounting 1042 By months 94,194, 308, 418, 534, 642. Investments of national banks, 1914-1920 727 744, 874, 986,1105,1234,1350 Money in the United States, stock of 827 1917-1920 310,1016 Par point map. 94,194, 308,419, 535, 644 1919-1920 724 Reserves, circulation, etc., of principal central Opinions of courts in Atlanta par clearance banks in Europe 487 case 496,1303 Wholesale prices in the United States 964,1082, Regulations of Board regarding 483 1212,1326 Clearing-house bank debits: Check clearing and collection. (See Clearing and November, 1918-March, 1920 483 collection.) 1372 INDEX TO VOLUME 6. Pa e Page. Clearing-house bank debits—Continued. s149 January, 1919-May, 1920 603 Copper industry, terms of sale in 811 1919-20 1259 Corset industry, terms of sale in Weekly 84,185, 297, Cost of living: In England 845, 957,1072,1203,1313 407, 524, 635, 733, 863, 978,1095,1225,1342 Clearing-house representatives, conference of, to Supreme council of peace conference on. . . . 363, 451 (See also Prices.) discuss interest rates 3,157 Cotton fabrics, finished, production and shipCoal: ments 1028,1146,1275 Production in England 617, 709, 844,1071 Production in France 619, Cotton factor, draft drawn by, eligibility for acceptance \ 162,1176 710, 846, 907, 959,1074,1205 464 Production in Germany 907,1207 Cotton manufactures industry, terms of sale in \ 76,177, 290, 400, Strike in England 1198,1311 Cotton, stocks of 480,518, 627, 717, 856, 970,1089,1219,1333 Shortage, reports on, by Federal Reserve agents 789 Counsel of Federal Reserve Board, opinions by. (See Rulings.) Coal and coke, production and shipments 79,179, 292, 402, 480, 520, 629, 719, 858, 972,1091,1220,1335Countries in which banks may accept drafts to furnish dollar exchange 1175 Coal and coke industry, terms of sale in 265 Court opinions in Atlanta par clearance case... 496,1303 Coin, gold, use of in payment of Liberty bond coupons 454 Credit control: Address of Secretary of Treasury before AmeriCollateral notes held by Federal Reserve Banks can Bankers Association 1125 each month 93,193,307, Conference of Advisory Council and directors 415, 532, 641, 741, 872, 985,1102,1233,1349 with Board to discuss 556, 566, 579 Collection conditions in Federal Reserve districts.. 922 Collection of checks. (See Clearing and collection.) Discussion of 113,116. Commercial failures: 217, 221, 448, 553, 555, 665, 774, 897,1013,1124 Export, reduction of 217 By months :. 63,160, 274, Extract from Annual Report of Board relative 384,493, 609, 697, 833, 945,1064,1175,1300 to 223, 239 During 1919 160 Loans for building operations 927 Commodity paper, irrigation company paper as 949 Loans for speculative purposes 342, 446, Comptroller of the Currency: 554,665,774, 897,1012 Call report 442 Recommendations of Federal advisory council Ruling by, re agencies of national banks for on 556 purpose of accepting drafts 835 Resolution of Senate, reply of Board 558, 582 Condition statements: Statement of Board re credit for crop moving.. 1124 Banco de la Nacion, Argentina 597 Bank of England 334, 893 Credits to foreign countries: Discussion of 7, 214, 343, 562, 901 Bank of France 334, 893,1073,1203,1315 Herbert Hoover on 114,140 Bank of the Netherlands 336, 894 Letter of Secretary of Treasury to Chamber of Bank of Norway 45 T Commerce of L nited States regarding 137 Bank of Spain 335, 895 606, 696, 832, 943,1062,1175 Bank of Sweden 45 Crop forecasts 1012; 1016 Brazilian banks 821-824 Crop moving, credit for Statement of Board regarding 1124 Chilean banks, 1914-1919 1057-1061 Cuban banks 1166-1168 Cuba: Condition of banks in 1166-1168 English commercial banks, 1914-1919 1044 Federal Reserve Banks 95,195, 313, Economic and financial conditions in 1162-1168 420, 536, 645, 747, 875, 988,1106,1235,1351 Imports and exports 1164 French commercial banks, 1913-1919 1047,1314 Monetary system 1164 German commercial banks, 1913-1919 1049 Moratorium decree 1165 German Reichsbank 335, 601, 894 Public debt 1165 Member banks— Sugar production and exports 1163 Abstract of 329, 438, 764,1005 Cunliffe committee, final report of 141 June, 1919-May, 1920 728 Currency: Weekly 102, 203, 319, Circulation— 427, 543, 651, 753, 882, 995,1112,1241,1357 Abroad, discussion of 6, 657, 902, 909, 928 National Bank of Copenhagen 46 Bank of England.... 485, 842, 954,1069,1199,1312 National banks, abstract of 442 Bank of France 485,1203,1315 Conferences: Bank of Japan 1077 Bankers with Board relative to acceptance Banks in allied, central, and neutral councredits 559 tries, 1914-1920 488 Clearing-house representatives with Board to Brazil 815 discuss interest rates 3157 Chile 1052 Directors of Federal Reserve Banks with Board Federal Reserve notes— to discuss credit situation 556* 566, 579 July, 1919-June, 1920 146 Federal Advisory Council 224, Weekly 100, 200, 317, 556,566,579,1019,1123,1263 425, 540, 649, 751, 880, 993,1111,1240,1356 Federal Reserve Agents '. 1123,1263 German Reichsbank 486, 847,1317 Governors of Federal Reserve Banks 455,1123 League of Nations on 898, 901,909 Connecticut, exercise of trust powers by national Per capita in the United States— banks located in 610 By months 109, 210, 327, Construction work, notes for, eligibility for redis435,551, 659, 762, 890,1004,1121,1250,1368 count 699 July, 1919-June, 1920 730 INDEX TO VOLUME 6. 1373 Pa e Currency—Continued. & - Directors of Federal Reserve Branch Banks—Con. page. Election of, for year 1920—Continued. Circulation—Continued. New Orleans 61 Reform in India 253,1298 Oklahoma City 159, 782 Reserves against Federal Reserve note Omaha 61 circulation 140 Pittsburgh 61 Resolution of Senate regarding 558, 582 Portland 61 Receips and shipments, July, 1919-May, 1920. 731 Salt Lake City 61 Stock of, in the United States— Seattle 61 By months 109, 210, 327, Spokane 61 435,551,659, 762, 890,1004,1121,1250,1368 Procter, W. C , resignation of, as director of 1917-1920 824-827 July, 1919-June, 1920 730 Cincinnati branch 10 Debits to individual account: Discount and open-market operations of Federal November, 1918-March, 1920 483 Reserve Banks: January, 1919-May, 1920 603 Acceptances held each month.. 93,193, 307, 416, 532, 1919-1920 1259 642,741, 873, 985,1102, 1233, 1348 Weekly 84,185, 297, Acceptances purchased— Distributed by maturities— 407, 524, 635, 733, 863, 978,1095,1225,1342 Three months ending December, 1919 191 Decisions. (See Opinions ) Three months ending March, 1920 530 Definitions: Three months ending June, 1920 870 Agricultural paper 1180 Demand deposits 1182 Three months ending September, 1920. 1231 Promissory notes 1180 Distributed by rates of discount— Readily marketable securities under RegulaThree months ending Nov. 30, 1919... 92 tion F . .? 385 Three months ending Feb. 29, 1920... 414 Time deposits and savings accounts 1182 Three months ending May 31, 1920... 742 Warrants 1183 Three months ending Aug. 31. 1920... 1104 Delacroix, M., memorandum of, presented at BrusEach month 91, 93,191,193, 306, 413, 415, sels international financial conference 1281 530, 532, 641, 642, 740, 741, 870, 873, Denmark: 984, 985,1101,1102,1231,1233,1349 Agricultural and live-stock paper held each Foreign exchange rates in Copenhagen 41, 44 month 93,193, Gold policy and foreign commerce of 35 307, 415, 532, 641, 741, 872, 985,1102,1233,1349 National Bank of Copenhagen, condition stateBills discounted— ment 46 Distributed by maturities— Trade balance, 1912-1917 39 Three months ending December, 1919. 191 Deposit certificate: Form of 495 Three months ending March, 1920 530 Time, definition of 1183 Three months ending June, 1920 870 Time, subject to rules and regulations of savings Three months ending September, 1920. 1231 Distributed by rates of discount— department 1065 Three months ending Nov. 30, 1919... 91 sits: Three months ending Feb. 29, 1920... 413 Demand and time, definition of 1182 Three months ending May 31, 1920... 742 European banks, 1913, 1918, 1919 374 Three months ending Aug. 31, 1920... 1103 Federal Reserve Banks— Each month 90,1912 July, 1919-June, 1920 724 (See also Condition statements.) 306, 412, 530, 641, 740, 870, 984,1101,1231,1348 Great Britain, France, and Italy 218 Bills held eadh month 93,193, Member banks, 1914-1920 726-728 307, 415, 532, 641, 741, 872, 985,1102,1233,1349 Savings accounts, definition of 1183 Charts showing interreserve bank discounting. 1042 Directors of Federal Reserve Banks: Collateral notes held each month 93,193 Conference with Board to discuss credit situa307, 415, 532, 641, 741, 872, 985,1102,1233,1349 tion 556, 566, 579 Dollar exchange bills purchased each month. 91,191, Election of, for year 1920 60 306, 413, 530, 641, 740: 870, 984,1101,1231,1349 Thompson, W. B., resignation as director of Earning assets held— New York bank 10 Each month 90,190, Voting for, by member banks 1178 305, 412, 529, 640, 739, 869, 983,1100,1230,1348 July, 1919-June, 1920 723, 725 Directors of Federal Reserve Branch Banks: Earnings from each class of earning assets, Election of, for year 1920—• monthly 90,190, 305, 412, Baltimore 61 529, 640, 740, 869, 983,1101,1230,1348 Birmingham 61 Number of member banks accommodated each Buffalo 61 month 89,189, 304, Cincinnati 61 411, 528, 639, 738, 868, 982,1099,1229,1346 Denver 61 Rates of earnings from investments— Detroit 61 By months 90,190, 305, El Paso 61 412, 529, 640, 740, 869, 983,1101,1230,1348 Houston 61 June, 1919-May, 1920 732 Jacksonville 61 Rediscounting during crop-moving period 1017 Little Rock 61 Rediscounts and sales of paper between Federal Los Angeles 60, 61 Reserve Banks— Louisville 61 October-December, 1919 192 Memphis 61 January-March, 1920 $31 Nashville 61 1374 INDEX TO VOLUME 6. Discount and open-market operations of Federal page. Edge Act: Page. Reserve Banks—Continued. First Federal Banking Corporation organized Rediscounts and sales of paper between Federal under 449 Reserve Banks—Continued. Foreign trade under 5 Investments abroad under 1168-1173 April-June, 1920 871 Regulations of Board under 379,1190 July-September, 1920 1232 Text of 56 First 7 months of 1920 1014 1919-20 730,1041 Election of directors. (See Directors.) 262 Total investment operations 89,189, 305, Electrical goods industry, terms of sale in 412, 529, 640, 739, 869, 983,1100,1230,1347 Emerson, R. G., appointed assistant to governor of Board 1134 War paper discounted 90,191, 306, 412, 530, 641, 665, 741, 870, 984,1101,1231,1348Employees, Federal Reserve Banks: Questionnaire on salaries of 54 War paper held each month 93,193, 307, Method of adjusting salaries 1293 415, 532, 641, 741, 872, 985,1102,1233,1349 Employment conditions, reports on, by Federal Discount policy of Federal Reserve Banks: Reserve agents 791 Extract from Annual Report of Board regard156 ing 223, 239 Engines and boilers, terms of sale in the industry.. England: Reply of Board to Senate resolution relative Bank of England—• to 558, 582 Condition statements 334, 8<)o Discount rates: Discount rates 446,1070,1199,1312 Advance in 2,118, 447, 557 Gold reserves 144,1207 Bank of England 446,1070,1199,1312 Note circulation 485, 842, 954,1069,1199,1312 Conference of clearing-house representatives Reserves, circulation, and security holdwith Board to discuss 3,157 ings, December, 1917-March, 1920 485 Discussion of 2,117, 223, 345, 447, 557, 777 Capital, deposits, and acceptances of leading Graduated, amendment to sec. 14 of Federal banks, 1913, 1918, and 1919 375 Reserve Act relating to 498 Coal production 617, 709, 844,1071 In effect, monthly 110, 211, 328,436, Coal strike 1198,1311 551, 659, 762, 890,1004,1121,1250,1368 Condition of principal commercial banks in, In New York market— 1914-1919 1044 January, 1918-March, 1920 479 Cost of living index 845, 957,1072,1203,1313 October, 1918-August, 1920 ... 941 Foreign exchange rates 843, 957,1070,1201 Preferential, on member bank notes, ruling Government floating debt 1070,1199,1312 on 162,163 Investment trusts in 1169 Prevailing in various centers 72,172,286,396, Pig iron and steel production 709, 514, 622, 713, 852, 967,1085,1215,1329 844,1071,1202,1313 Progressive 448, 498, 777 Price control of commodities in 244 Recommendations of Advisory Council on 224 Price situation in, address on, by Hon. R. McResolution of Federal Reserve Bank of Kansas Kenna \ 247 City relative to graduated rates 449 Reserves, deposits, and note circulation 218 Reports on, by Federal Reserve districts 571 Ship tonnage under construction. 844,1071,1202,1313 Districts, Federal Reserve, change in boundaries Trade-union employment 618, of sixth and eighth 59 709, 844, 957,1072,1203,1313 Dividends of Federal Reserve Banks 135, 726, 830 Wholesale prices in, index of 30, Dividends and earnings of State bank members. 660,1251 166, 280, 389, 506, 617, 708, 844, 954,1069,1198,1310 Dollar exchange: Acceptance of draft drawn for furnishing....... 835 Errata: July Bulletin 928 Bills purchased by Federal Reserve Banks August Bulletin 947 each month 91,191, 306, 413, 530, 641, 740, 870, 984,1101,1231,1349 Essential loans. .. 342,446, 554, 665, 774, 897, 904, 927,1012 Evans, Judge B. D., opinion by, in Atlanta par Countries in which banks may accept drafts 496 clearance case to furnish 1175 Domicile bills as acceptances 386 Exchange rates, foreign. (See Foreign exchange rates.) Drafts: Regulations of Board on discount, etc., of.. 1179,1182 Executor, administrator, etc. (See Fiduciary powers.) (See also Acceptances.) Drug industry, terms of sale in 1155 Exports. (See Imports and exports.) Dry goods industry, terms of sale in 797 Failures, commercial: By months 63, Earning assets of Federal Reserve Banks: 160, 274, 384,493, 609, 697, 833, 945,1064,1175,1300 Amounts held— During 1919 160 1920, by months 90,190, 305,412, 529, 640, 739, 869, 983,1100,1230,1348 Farm land, loans on, regulations of Board regarding. 1185 July, 1919-June, 1920 723, 725 Federal Advisory Council: Conferences with Board. 224, 556, 579,1019,1123,1263 Earnings and dividends of State bank members. 660,1251 To discuss credit situation 556, 579 Earnings and expenses of Federal Reserve Banks: Recommendations on interest and discount Calendar year 1919 132-136 rates 224 January, 1919-June, 1920 726 Report to Board relative to credit control. .. 581, 583 Six months ending June 30, 1920. 828-831 Kederal land bank notes, eligibility of, for redisEarnings from investments of Federal Reserve count 609 Banks, rates on, June, 1919-May, 1920 732 Federal Reserve act, amendments to: Eddy, W. L., appointed assistant secretary of FedSection 14—Progressive discount rates 448, 498 eral Reserve Board 1134 INDEX TO VOLUME 6. Federal Reserve act, amendments to—Continued. Page. Section 25a—Corporations engaged in foreign banking (Edge Act) 56 Federal Reserve agents: Gold fund transactions 300, 633, 976,1015,1341 Meetings of 1123,1263 Federal Reserve bank notes: Circulation, July, 1919-June, 1920 724 Stock of, in the United States— By months 109, 210, 327,435, 551,659, 762,890,1004,1121,1250,1368 1917-1920 825 July, 1919-June, 1920 730 Federal Reserve Banks: Condition statements, weekly 95,195, 313, 420,536,645,747,875,988,1106,1235, 1351 Directors of. (See Directors.) Discount and open-market operations of. (See Discount and open-market operations.) Dividends paid— Calendar year 1919 135 January-June, 1920 830 January, 1919-June, 1920 726 Earnings and expenses— Calendar year 1919 132-136 January, 1919-June, 1920 726 Six months ending June 30, 1920 828-831 Fiscal agency disbursements— 1919 135 January, 1919-June, 1920 726 January-June, 1920 830 Franchise tax 135, 830 Norris, G. W., appointed governor of Philadelphia bank 348 Political affiliations of directors or officers of... 10 Profit and loss account, calendar year 1919.. 135, 830 Rediscounts and sales of paper between— During three months period... 192, 531, 871,1232 1919-20 730,1041 Review of operations, 1919 11 Salaries of employees— Questionnaire on 54 Method of adjusting 1293 Federal Reserve Board: Chapman, W. T., resignation of, as secretary... 1134 Conference with bankers relative to acceptance credits 559 Conference with clearing-house representives to discuss interest rates 3,157 Conferences with Federal Advisory Council . 224, 556, 579,1019,1123,1263 Conferences with governors of Federal Reserve . Banks 455,1123 Eddy, W. L., appointed assistant secretary 1134 Emerson, R. G., appointed assistant to governor. 1134 Harding, W. P. G., redesignated as governor.. 782 Harrison, G. L., resignation as general counsel. 782 Herson, J. F., appointed chief of division of examination 1134 Hoxton, W. W., appointed secretary 1134 Logan, W. S., appointed counsel 782 Moehlenpah, H. A., retirement of, as member.. 911 Paddock, W. W., resignation of, as chief of division of examination 1134 Platt, E d m u n d Appointed member 566 Designated as vice governor 782 Regulations of, series of 1920 379,1179 Remarks of Gov. Harding relative to credit control 557, 579 Reply to Senate resolution relative to discount policy 558,582 1375 Federal Reserve Board—Continued. Page. Reply to Senate resolution relative to interest rates on call loans 345, 368 Resolutions of, regarding political affiliations of officers or directors of Federal Reserve Banks 10 Statement of, re credit for crop moving 1124 * Strauss, Albert, retirement of, as member 348 Wills, D. C., appointed member of 1019 Federal Reserve Bulletin printed in two editions.. 672 Federal Reserve districts, changes in boundaries of sixth and eighth 59 Federal Reserve notes: Circulation, July, 1919-June, 1920 724 Interdistrict movement of 202, 542, 881,1241 Issued and redeemed, June, 1919-May, 1920... 732 Note account of Federal Reserve agents 100, 200, 317, 425, 540, 649, 751, 880, 993,1111,1240,1356 Reserve against, 1919 146 Stock of, in the United States— By months 109, 210, 327, 435, 551, 659, 762, 890,1004,1121,1250,1368 July, 1919-June, 1920 730 1917-1920 825, 826 Fiduciary powers: Abstract business of a national bank under section 11 (k) 385 Administration of trust department of a national bank under Regulation F 699 Exercise of, by national banks located in Connecticut 610 Exercise of, by national banks located in Wisconsin 700 Granted to national banks 64,161, 274, 384, 493, 608, 698, 834;946,1063,1174,1300 Opinion by Judge Van Valkenburgh on right of national bank to use the words ''trust company" as part of corporate title 497 "Readily marketable securities" under Regulation F 385 Real estate loans by national banks 949 Regulations of Board regarding 1184 Right of a national bank to do an abstract business 385 First Federal Foreign Banking Corporation, organization of, under Edge Act 449,1299 First National Bank, Boston, foreign branches of. 272, 606, 944,1299 Fiscal agency disbursements of Federal Reserve Banks: Calendar year 1919 135 January, 1919-Jime, 1920 726 January-June, 1920 830 Foreign banking: Act (Edge) providing for incorporation of institutions engaging in 56 Discussion of 218, 564 Regulations of Board governing corporations engaging in 379,1190 Foreign banks: Capital and surplus, deposits, and acceptances of leading banks in Europe 374 Condition statementsArgentine banks 597 Bank of England 334, 893 Bank of France 334, 893,1073,1203,1315 Bank of the Netherlands 336, 894 Bank of Norway 45 Bank of Spain 335, 895 Bank of Sweden 45 Brazilian banks 821-824 Chilean banks 1057-1061 1376 INDEX TO VOLUME 6. Foreign banks—Continued. Page. Condition statements—Continued. Cuban banks 1166-1168 English commercial banks 1044 French commercial banks 1047 German commercial banks 1049 German Reichsbank 335, 894 National Bank of Copenhagen 46 Gold reserves— 1900-1919 144 1910-1920 1295-1297 Foreign bonds, price and yield of 450 Foreign branches of American banks 63, 159.272,382,492,606, 944,1174,1298 Asof Feb. 18, 1920... 272 As of May 18, 1920 606 As of Aug. 18, 1920 944 As of Nov. 18, 1920 1298 Foreign countries: Loans to— Discussion of 7,114, 214, 343, 562, 901 Herbert Hoover on. 114,140 Secretary of Treasury to Chamber of Commerce of United States regarding 137 Practice of handling bills of exchange in 269 Foreign exchange rates: Buenos Aires, 1914-1920 598 Chile 1055 Cunliffe Committee report on 141 Denmark, 1914-1919 14, 44 Discussion of 4,115, 216 219,343,450,563,670,778,900,1128,1260 England 843, 957,1070,1201 France 709,1074,1204,1315 Germany 1076,1319 In New York on allied, neutral, and silverstandard countries '.. 49-52,1158-1162 League of Nations on 898, 901, 909 Low levels for sterling 216.1260 Norway, 1914-1919 43 Quoted in New York— Three months ending December, 1919. . . . Ill Three months ending March, 1920 437 Three months ending June, 1920 763 Three months ending September, 1920 1122 Rio de Janeiro, Brazil, 1914-1919 819 Review, year 1920 670,1260 Sweden, 1914-1919 40,42 Foreign loans: Anglo-French loan 1129 Discussion of 7,114, 214, 343, 562, 901 Government and municipal loans placed in the United States 687-692 Herbert Hoover on 114. 140 Secretary of Treasury to Chamber of Commerce of United States regarding 137 Foreign trade: Brazil, 1910-1919 815 Chile 1054 Denmark 38, 39 Discussion of 4, 115, 217, 219, 451, 562, 775, 899, 908,1127,1260 French National Bank of Commerce organized to promote 46 Index of 694, 841, 953,1068,1197,1309 Establishment of 694 Norway 37, 39 Sweden 36, 39 Under Edge Act 5 Form of certificate of deposit 495 France: Bank of France— Condition statements.... 334,893,1073,1203,1315 Pa e France—Continued. 8Bank of France—Continued. Deposits, note circulation, and reserves 218, 1073,1203,1315 Gold reserves, 1900-1919 144 Report of, for year 1919 372 Reserves, circulation, and security holdings, 1917-1920 485,1315 Budget 490,958,1072 Capital, deposits, and acceptances of leading banks, 1913, 1918, and 1919 376 Coal in 619, 710, 846, 907, 959,1074,1205 Condition of principal commercial banks in 1913-1919 1047,1314 Foreign exchange rates 709,1074,1204,1315 French National Bank of Foreign Commerce, organization of 46 Price control of commodities in 246 Public debt 958,1073,1203,1315 Tax proposals for 1920 491 Wholesale prices in, index of 31, 166, 281, 390, 507, 619, 710, 846, 957,1072,1203,1313 Franchise tax, Federal Reserve Banks 135, 830 French National Bank of Foreign Commerce, organization of 46 Fruits, shipments of 77, 177, 291, 401, 519, 628, 717, 857, 971,1089,1219,1333 Fur manufacturing industry, terms of sale in 807 Furniture industry, terms of sale in 936 Germany: Capital, deposits, and acceptances of leading banks, 1913, 1918, and 1919 376 Coal production 907,1207,1318 Condition of principal commercial banks in 1913-1919 1049 Foreign exchange rates 1076,1319 Indemnity figures 563 Price control of commodities 1206 Public debt 1076,1317 Reichsbank— Condition statements 335, 894,1076,1317 Gold reserves. 144,1297 Note circulation 847,1317 Report of, for year 1919 601 Reserves, circulation, and security holdings, 1917-1920 \ 486 Wholesale prices in 847,1075,1206,1317 Glass industry, terms of sale in 940 Glove industry, terms of sale in 812 Gold: Certificates legal tender, act making 60 Coin, use of, in payment of Liberty bond coupons 454 Exports, 1919 219 Imports and exports of 9,108,119, 209, 221, 325, 346, 433, 453, 549, 565, 657, 671, 760, 780,888, 909,1002,1018,1119,1132,1248,1261,1364 Report of committee of American Bankers Association on McFadden gold bill 1147 Reserves. (See Reserves.) Stock of, in the United States— By months 109, 210, 327, 435, 551, 659, 762, 890,1004,1121,1250,1368 1919-1920 730 1917-1920 825, 826 Gold settlement fund transactions: During crop-moving period 1015 During year 1920 300, 633, 976,1015, 1339 June, 1919-July, 1920 724 Government financing: Bond purchases suspended 445 Discussion of 1,113, 213, 339, 445, 553, 661, 769, 897,1011,1123,1253 INDEX TO VOLUME 6. 1377 Page. Government financing—Continued. Page. Indexes—Continued. Plan for future 113 Physical volume of trade— Government supervision, advertising by State memMonthly 74,174, 288, ber bank that it is under 65 398, 516, 624, 714, 853, 968,1086,1216,1330 Governors of Federal Reserve Banks: 1913-1920 480 Conferences with Board 455,1123 Retail trade 53, 238, Norris, G. W., appointed at Philadelphia, vice 377, 503, 614, 706, 839, 951,1066,1195,1307 E. P. Passmore, resigned 348 Establishment of 53 Governor of Federal Reserve Board: Wholesale prices— Harding, W. P. G., redesignated 782 Abroad 26,164, 279, On bonuses to soldiers 340 388, 506, 616, 708, 842, 954,1069,1198,1310 On credit control 116, 557, 579 In the United States 30, On discount rates 117, 582 68, 165, 168, 280, 282, 393, 499, 511, 611, On loans for essential industry 904, 927 616, 702, 712, 836, 850, 962,1081,1210,1325 Remarks before conference of Advisory Council Description of international price index.. 26, 499 and directors relative to control of credit.. 557, 579 India: Reply to Senate resolution relative to disCurrency reform in 253,1298 count policy 582 Rupee reserves 1297 Grain and flour, receipts and shipments 75,175, 289, Wholesale prices in 963,1079,1209,1324 399, 480, 517, 626, 716, 855, 969,1088,1218,1332 Industrial loans, foreign, placed in the United Great Britain. (See England.) States. 691 Harding, W. P. G., redesignated as governor of Interdistrict time schedule 746, 987 Federal Reserve Board 782 Interest rates: Hardware industry, terms of sale in 150 Call loansHarrison, G. L., resignation of, as counsel to FedMemorandum of Federal Reserve agent of eral Reserve So2,Td. _...... .^ . . . . . . . . 782 New York on 369 Reply of Board to Senate resolution reHats, men's and women's, tcn^s of sale in the ingarding 345, 368 d y . Conference °f clearing-house representatives Herson, J. F., appointed chief of division of ex^ith Boam to discuss 3,157 amination 1134 In New York— Hides and skins, raw stocks of. 80, 180, 2^4, 404, 522, 631, January, 1918-Ivfarch ,1920 _479 721, 860, 973,1092,1*222,1337 October, 1918-August, 1920..., 941 Hoover, Herbert, on loans to foreign countries... 114,140 Hosiery industry, terms of sale in 472 Prevailing& I£ various centers 72,172, 286, Houston, David F., appointed Secretary of the 396, 5i4, 522, 713, 852, 967,1085,1215,1359 Treasury 121 Recommendations of Advisory Council on 224 Hoxton, W. W., appointed secretary of the Federal Reports on, by Federal Reserve agents. ^ 571 Reserve Board ". 1134 International Banking Corporation, New York Imports and exports: City, foreign branches oi 273, 492, 607, 944,1298 Actual and adjusted values of 1257 Internation financial conference at Brussels 1129, Brazil, 1910-1919 815 1277-1293 Chilean 1054 Boyden, R. W., remarks of 1292 Cuban 1164 Cassel, Gustav, report of 1277 Denmark 39 Delacroix, M., memorandum of 1281 England 618, 709, 843, 956,1071,1200,1313 Pigou, A. C, memorandum of 1282 France 508, 620, 710, 847, 959,1075,1205,1317 Report of conference 1288 Gold 9,108,119, 209, 221, 325, 346, 433, 453, Resolutions adopted 1283 549, 565, 657, 671, 760, 780, 888, 909,Interreserve bank discounting, charts showing. .1041-1044 1002, 1018, 1119, 1132, 1248, 1261, 1364 Investment securities, depression in 223 Italy 508 Investment trusts as a channel for investment Meat products exports 75, 175, 289, abroad 1168-1173 399, 517, 626, 715, 854, 969, 1087, 1217, 1331 Investments, American, abroad 687, 777 Merchandise, 1913-1920 482 80,181, 294, 403, Japan 509, 849, 961 Iron and steel, production of 481, 521, 630, 720, 860, 973,1092,1222,1336 Norway 39 148 Pig tin imports 80,181, 294, Iron and steel industry, terms of sale in 949 404, 522, 631, 720, 860, 973,1092,1222,1336 Irrigation company paper as commodity p a p e r . . . . Silver 9,108,120, 209, 221, 326, 346, 434, 454, Italy: Budget 489,957,1320 550, 565, 658, 671, 761, 780, 889, 909, Gold reserves '. ....... 1297 1003,1018,1120,1132,1249,1262,1364 Reserves, bank deposits, and note circulation.. 218 Sweden 39 Price control of commodities in 246 United Kingdom, France, and Italy 218 Public debt 489 Income and excess-profits taxes 341,1253 * Tax law in effect Jan. 1, 1920 489 Indexes: Wholesale prices in 31,166, 281, Banking and financial conditions, January, 391, 508, 620, 711, 848, 959,1080,1210,1320 1918-March, 1920 479 law regulating foreign banking in 1039 Business conditions, description of 474 Jamaica, Foreign trade 694, 841, 953,1068,1197,1309 Japan: Bank of Japan— Establishment of 694 Gold reserves 145,1297 Imports and exports of merchandise, 1913-1920 482 Note circulatian.. , , , , . „ , . , 1077 1378 Japan—Continued. Import tariff Wholesale prices in, index of INDEX TO VOLUME 6. Page. 1319 Loans, investments, and deposit liabilities of member banks, 1914-1920 726 509, 82,183, 296, 848,960,1076,1207,1319 Locomotives and cars, output of 405, 523, 632, 722, 862, 974,1093,1223,1338 Jewelry industry, terms of sale in 1032 Logan, W. S., appointed general counsel of Federal Joint stock land bank, notes of, eligibility for Reserve Board 782 rediscount 609 60 Knit goods, production of 925,1027,1145,1275 Los Angeles branch bank, opening of 79,179, 292, 402, Laces and embroideries, terms of sale in the industry. 473 Lumber, receipts and shipments Law department. (See Rulings.) 480, 520, 629, 718, 858, 972,1090,1220,1364 Laws, banking: Lumber industry, terms of sale in 933 Act making gold certificates legal tender 60 McFadden gold bill, report of committee of AmeriAmendment to Clayton Act 813 can Bankers Association on 1147 McKenna, Hon. R., address of, on price situation in Amendments to Federal Reserve Act— England 247 Section 14—Progressive discount rates.. 448,498 Section 25a—Corporations engaging in Machine tool industry, terms of sale in 155 foreign banking (Edge Act) 56 Machinery manufacturing industry, terms of sale in. 156 Maps. (See Charts.) Authorizing establishment of French National Bank of Foreign Commerce 48 Maturities: Acceptances purchased— India currency law ,253,1298 Each month 91,191, 306, Mississippi law authorizing State banks to 413, 530, 641, 740, 870, 984,1101,1231,1349 accept drafts or bills of exchange 701 Three months ending December, 1919 191 Mississippi law relating to par collections 387 Three months ending March, 1920 530 Regulating foreign banking in Jamaica 1039 Tax legislation in Spain 692 Three months ending June, 1920 870 Texas banking laws authorizing trust comThree months ending September, 1 9 2 0 . . . 1231 panies to accept drafts or bills of exchange.. 950 Three months ending Nov. 30, 1919 92 Lead industry, terms of sale in 149 Tnree months ending Feb. 29, 1920 114 League of Nations: I Three months ending May 31, 1020 742 On currency situation and foreign eXGnanpp 858, Three months ending Aug. 31, 1920 1104 "901, 909 Bills discounted by Federal Reserve B a n k s Brussels international conference 1129,1277-1293 Each month 90, 99,191, 199, Boyden, R. Vv., remarks of 3 222 306, 316, 412, 424, 530, 540, 641, 649, 740, 751, C&ssel, Gustav, report of 1277 870, 879, 984, 992,1101,1110,1230,1239,1348 Delacroix, M., memorandwui. of 1281 Three months ending Nov. 30, 1919 91 Three months ending Feb. 29, 1920 413 Pigou, A. C.a memorandum of 1282 Three months ending May 31, 1920 742 Report -zi conference 1288 Three months ending Aug. 31, 1920 1103 Resolutions adopted 1283 Three months ending December, 1919 191 Leather manufactures, terms of sale in the industry 932 Three months ending March, 1920 530 Liberty bond coupons, gold coin in payment for 454 Three months ending June, 1920 870 Liberty bonds: Three months ending September, 1920 1231 Prices of 446, 555 Certificates of indebtedness 99, Purchases by Treasury suspended 445 199, 424, 540, 649? 751, 879, 992,1110,1239,1355 Limitations on rediscounts for a State member 75,175, bank , 495 Meat products, exports of 289, 399, 517, 626, 715, 854, 969,1087,1217,1331 Live stock, receipts and shipments of.. 74,174,288,398, 1155 480, 516, 625,714,853, 968,1086,1216,1330 Medicines, terms of sale in the industry Member banks: Live stock paper held by Federal reserve banks, Classification of loans and discounts of State each month 93,19 , 307, bank members 333, 444, 766,1007 415, 532, 641, 741, 872, 985,1102,1233,1349 Condition reports—• Loans: Abstract of 329, 438, 764,1005 By member banks to other banks and trust June, 1919-May, 1920 728 companies as of Nov. 17, 1919 552 Weekly 102,203, Call loan rates, reply of Board to Senate resolu319,427,543,651, 753, 882, 995,1112,1241,1341 tion relative to 345, 368 Earnings and dividends of State bank memEssential, governor of Board to a lumber combers 660,1251 pany regarding 927 Loans by, to other banks and trust companies For speculative purposes 342, as of Nov. 17, 1919 552 446, 554, 665, 774, 897,1012 Loans, investments, and deposit liabilities of, Foreign, placed in the United States 687-692 1914-1920 726-728 In aid of exports, suspension of, by War Number accommodated through discount operFinance Corporation 562 ations each month 89,189, Methods followed by city banks in granting 304,411, 528, 639, 738, 868, 982,1099,1229,1346 accommodation to correspondents 584 Number in each district, by months 89,189, Movement of, in Federal Reserve districts 920 304,411, 528, 639, 738, 868, 982,1099,1229,1346 Real estate-^Resources and liabilities, June, 1919-June, By national banks exercising trust powers 949 1920 729 Regulations of Board regarding 1185 State banks admitted to system, by months.. 62,159, To foreign countries— 273,383,492, 607, 697, 833, 945,1063,1174,1299 Discussion of 7,114,140,214, 343, 562, 901 Secretary of Treasury to Chamber of Men's clothing industry, terms of sale in 803 Commerce of United States regarding... 137 Men's furnishings, terms of sale in the industry 810 Statement of Herbert Hoover regarding, 1X4,140 Men's hats, terms of sale in the industry , , . T T 809 INDEX TO VOLUME 6. Page. 1379 Page. Mercantile Bank of the Americas, New York, foreign Notes of Federal land bank, eligibility of, for rebranches of 63,159, 272, 382, 607, 944,1298 discount 609 As of Feb. 18, 1920 272 Notes, drafts, and bills of exchange, regulations of As of May 18, 1920 607 Board on discount, etc., of 1179,1181,1182 Asof Aug. 18, 1920 944 Notes, promissory, definition of 1180 As of Nov. 18, 1920 1298 Office appliances, terms of sale in the industry 1038 Merchandise, imports and exports, 1913-March, Oil refineries, output of 79,180, 293, 403, 1920 482 480, 521, 630, 720, 859, 973,1091,1221,1336 Methods followed by city banks in granting accomOklahoma City branch bank: . modation to correspondents 584 Authorized 62 Millinery, terms of sale in the industry 808 Directors chosen 159, 782 Mississippi law authorizing State banks to accept Opening of 782 drafts or bills of exchange 701 Opinions by courts in Atlanta par clearance case. 496,1303 Mississippi law relating to par collections 387 Opinion by Judge Van Valkenburgh on right of Moehlenpah, H. A., retirement of, as member of national bank having trust powers to use the Federal Reserve Board 911 words "trust company" as part of corporate title. 497 Money: Opinion by Justice Case on right of national banks Per capita circulation— in Connecticut to exercise trust powers 610 By months 109, 210, 327, 435, Opinion by supreme court of Wisconsin relative to 551, 659, 762, 890,1004,1121,1250,1368 exercise of trust powers by national banks located July, 1919-June, 1920 730 in that State 700 Receipts and shipments, July, 1919-May, 1920. 731 Opinions of counsel of Federal Reserve Board. Stock of, in the United States— (See Rulings.) By months 109, 210, 327, 435 Optical goods, terms of sale in the industry 1034 551, 659, 762, 890,1004,1121,1250,1368 Paddock, W. W., resignation of, as chief of division f 1917-1920 824-827 of examination 1134 July, 1919-June, 1920 - 730 Paint industry, terms of sale in 940 Municipal loans, foreign, placed in the United Paper industry, terms of sale in 1035 States 689 Par collection of checks. (See Clearing and collecMusic and musical instruments, terms of sale in the tion.) industry 1034 Park-Union Foreign Banking Corporation, New National bank notes: York City, foreign branches of 273, 607, 944,1299 Stock of, in the United States— Passmore, E. P., resignation of, as governor of B y months 109, 210, 327, 435, 551, Federal reserve bank of Philadelphia. 348 659, 762, 890,1004,1121,1250,1368 Peace Conference, statement of supreme council July, 1919-June, 1920 730 of, on economic conditions 363, 451 1917-1920 - - 825 Per capita circulation in the United States: National banks: By months 109, 210, 327, 435, 551, Abstract business under sec. Ilk 385 659, 762, 890,1004,1121,1250,1368 Acceptance liabilities of 158, 686 July, 1919-June, 1920 730 Administration of trust department under RegPetroleum, production of... 79,180, 293, 403, 480, 521, 630, ulation F 699 719, 859, 972,1091,1221,1335 Agencies of, for accepting drafts 835 Petroleum industry, terms of sale in 267 Capital of, increase and decrease in. . . . 62,160, 274, Pig iron and steel production in England 709, 383, 492,' 609, 697, 833, 946,1064,1175,1300 844,1071,1202,1313 Charters issued to 62,160,274, Pig tin, imports of 80,181, 294, 404, 522, 383, 492, 609, 697, 833, 946,1064,1175,1300 631, 720, 860, 973,1092,1222,1336 Condition reports, abstract of 442 Pigou, A. C, memorandum presented before Exercise of trust powers by banks located in Brussels financial conference 1282 Connecticut 610 Physical volume of trade, index of: Fiduciary powers granted to 64,161, 274, By months 74,174, 288, 398, 516, 384, 493, 608, 698, 834, 946,1063,1174,1300 624, 714, 853, 968,1086,1216,1330 Foreign branches of 272, 606, 944,1299 1913-1920 480 Loans, investments, and deposit liabilities of, Discussion of. 343,453, 1914-1920 726 561, 668, 772, 906,1017,1125,1255 Real estate loans by, exercising trust powers... 949 Review, year 1920 1255 National City Bank, New York, foreign branches Platt, Edmund: of 63,159, 272, 382, 492, 606, 944,1174,1299 Appointed member of Federal Reserve Board . 566 Asof Feb. 18, 1920 272 Designated as vice governor 782 As of May 18, 1920 606 litical affiliations of directors or officers of Federal As of Aug. 18, 1920 944 Poreserve banks 10 Naval stores 78,178, 291, Pottery industry, terms of sale in 1031 401, 519, 628, 718, 857, 971,1090,1220,1334 Preferential rates of discount 162,163 New Zealand, practice of handling bills of exchange in 269 Prices: Address of Hon. R. McKenna on price situation Norris, G. W., appointed governor of Federal rein England 247 serve bank of Philadelphia 348 Control of— Norway: In England, France, and Italy, 1913-1919 243 Bank of Norway, condition of 45 In Germany 1206 Foreign exchange rates in Christiania 43 Discussion of 8,119, 344,452, 561, Gold policy and foreign commerce of 35 666, 771, 905,1016,1127,1254,1260 Trade balance, 1912-1917 39 1380 INDEX TO VOLUME 6. "Readily marketable securities" under Regula- Pa ? e tion F 385 26,164, 279, 388, 506, Real estate loans: 616, 708, 842, 954,1069,1198,1310 By national banks exercising trust powers 949 Description of international price index.. 26,499 Regulations of Board regarding 1185 In the'United States 30, 68, Rediscounts: 165,168, 280, 282, 392, 393, 499, 511, 611, 616, Borrower, limitations upon amount redis702, 712, 836, 850,962, 963,1081,1210,1325 counted for, by different member banks 278 Review, year 1920 666,1260 Limitations on. for State member bank 495 Supreme council of peace conference on 363, 451 Notes for building materials or construction Private bankers, Clayton Act as applied to 948 purposes 699 Procter, W. C, resignation of, as director of CincinNotes of Federal land bank 609 nati branch bank 10 Regulations of Board on 1179 Production and trade: (See also Discount and open-market operations.) Discussion of 343, Rediscounts and sales of paper between Federal 453, 561, 668, 772, 906,1017,1125,1255 Reserve Banks 192, 531, 730, 871,1014,1041 Index of .74,174, 288, 398, April, 1919-October, 1920 1041-1044 516, 624, 714, 853, 968,1086,1216,1330 Charts showing 1042,1043 Review, year 1920 668,1255,1260 First 7 months of 1920 1014 Profit and loss account of Federal reserve banks, June, 1919-June. 1920 730 calendar year 1919 135 Regulations of the Federal Reserve Board, 1920. 1179-1194 Public debt: Regulation A—Rediscounts under section 13... 1179 Argentina 596 Regulation B—Open-market purchases of bills Brazil 819 of exchange, trade acceptances, and bankers' Chile 1056 acceptances under section 14 1181 Cuba 1165 Regulation C—Acceptance by member bank of England 1070,1199,1312 drafts and bills of exchange 1182 France 958,1073,1203,1315 Regulation D—Time deposits and savings acGermany 1076,1317 counts .". 1182 Italy 1320 Regulation E—Purchase of warrants 1183 "United States 1123 Regulation F—Trust powers of national banks.. 1184 Public utility loans, foreign, placed in United Regulation G—Loans on iarm land and other States .~ 692 real estate 1185 Questionnaire, Federal reserve bank salaries 54,1293 Regulation H—Membership of State banks and Railroad car shortage 560 trust companies 1186 Resolutions adopted by conference of Advisory Regulation I—Increase or decrease of capital Council and directors regarding 581 stock of Federal Reserve banks and cancellaRailroad loans, foreign, placed in the United States. 590 tion of old and issue of new stock certificates.. 1187 Railroad strike 574 Regulation J—Check clearing and collection... 1189 Railway equipment industry, terms of sale in 156 Regulation K—Banking corporations authorRailway net ton-mileage 82,183, 296, 406, 481, 524, ized to do foreign banking business under 632,722, 862, 975,1094,1224,1257,1338 section 25a 379,1190 Rates: Regulation L—Interlocking bank directorates Acceptances purchased by Federal Reserve under the Clayton Act 1193 Banks— Renewal acceptances 66, 277 Each month 91,191, 306, 413, 530, 641, Reserves: 740, 870, 984,1101,1231,1349 Bank of England, 1917-1920 485 Three months ending November 30, 1919.. 92 Bank of France, 1917-1920 485,1315 Three months ending February 29,'1920. . 414 Banks in allied, central, and neutral countries, Three months ending May 31. 1920 742 1914-1920 488 Three months ending August 31, 1920 1104 Excess (free gold), changes in, during 1919 145 Bills discounted by Federal Reserve Banks— Federal Reserve Bank— Each month 90,191, 306,412, 530, 641, Against net deposit and note liabilities, 740, 870, 984,1101,1231,1348 1919 146 Three months ending November 30, 1919.. 91 January, 1918-March ,1920 479 Three months ending February 29, 1920.. 413 July, 1919-June, 1920 667, 724 Three months ending May 31, 1920 742 German Reichsbank, 1917-1920 486 Three months ending August 31, 1920 1103 Gold, of principal banks of issue— Call money, reply to Senate resolution on 369 1900-1919 144 Discount— 1910-1920 1295-1297 Advance in 2,118, 447, 557 Great Britain, France, and Italy 909 In effect, monthly.... 110, 211, 328,436, 551, 659, New method of figuring reserves against de762, 890,1004,1121,1250,1368 posits 3 Prevailing in various centers 72,172, 286, Reserve position of the Federal Reserve Banks. 1, 396, 514,622, 713, 852, 967,1085,1215,1329 220, 448, 554, 663, 775, 911,1019,1134,1263 Earnings from investments of Federal Reserve Resolutions: Banks— Adopted at jonference of directors and adBy months 90,190, 305, visory council relative to car shortage 566, 581 412, 529, 640, 740,869, 983,1101,1230,1348 Brussels international financial conference 1283 June, 1919-May, 1920 732 Of Board regarding political affiliations of offiForeign exchange. (See Foreign exchange cers or directors of Federal Reserve Banks... 10 rates.) Of Senate relative to call-loan interest rates... 368 Prices—Continued. Index of wholesale— Abroad Page. INDEX TO VOLUME 0. 1381 Resolutions—Continued. Page. Rulings of the Board and opinions of counsel—Con. page. Cotton-factor paper, eligibility of 162,1176 Of Senate relative to discount policy of Federal Directors of Federal feserve Banks, member Reserve Banks 558, 582 banks required to vote for 1178 Resources and liabilities: Discount rates, preferential, on member bank Federal Reserve Banks 96, notes 162,163 196, 314, 421, 537, 645, 748, 876, 988,1106,1235,1351 Documentary drafts, bankers' acceptances seMember banks in leading cities— cured by 610 By months 103, 204, 320, Domicile bills, eligibility of 386 428, 544, 652, 754, 883, 995,1112,1241,1357 Exchange charges on member bank's own June, 1919-June, 1920 729 acceptance 162 Retail trade index 53, 238, 377, Federal land bank notes, eligibility for redis503, 614, 706, 839, 951,1066,1195,1258,1307 count 609 Establishment of 53 Fiduciary powers of national banks—• Review of business and banking conditions, 1920. .. 662Abstract business 385 670, 723-733,1253-1261 Administration of trust department under Ribbon industry, terms of sale in 467 Regulation F 699 Rulings of the Board and opinions of counsel: "Readily marketable securities" under Abstract business of national bank under secRegulation F 385 tion Ilk 385. Real estate loans 949 Acceptances— Foreign buyer, acceptances secured by docuAgencies of national banks for purpose of mentary drafts drawn on 610 accepting drafts 835 Foreign seller, draft drawn by an American Automobiles and automobile tires, drafts manufacturer for financing the purchase of secured by warehouse receipts covering.. 65 goods from 162 Bankers' acceptances secured by docuForm of certificate of deposit 495 mentary drafts on foreign buyer 610 Importation of goods, draft drawn by American Collection of 699 manufacturer to finance 162 Dollar exchange, drafts drawn for furnishIrrigation company paper 949 ing 835 Joint stock land" bank notes, eligibility for Draft drawn by an American manufacturer rediscount 609 for financing purchases from a foreign Limitation on aggregate rediscounts of paper seller 162 of one borrower made for different member Exchange charges on member bank's own banks 276, 278 acceptance 162 Limitation on rediscounts for a State member Renewals, eligibility of 65, 66, 276, 277 bank 495 Shipping documents, acceptances against. 66,1301 National bank, abstract business of 385 Trade acceptance as actual security for Preferential rates of discount on member bank accepting banks 1065 notes 162,163 Advertisement of State bank member that it is Private bankers, Clayton Act as applied to 948 under Government supervision 65 "Readily marketable securities" under ReguAgricultural-implement paper— lation F - : - - 385 Articles in the nature of permanent and Real estate loans by national banks exercising fixed investments 1302 trust powers 949 Definition of 1301 Rediscounts—• Distinction between agricultural and comFederal land bank notes 609 mercial paper 1302 For a State member bank, limitations on.. 495 No obligation to rediscount even though Of paper of one borrower made for different eligible 1303 member banks 276, 278 Notes given in payment for articles purRenewal of drafts 65, 66, 2 76, 277 chased 1302 Shipping documents, acceptances against . . . 66,1301 Same principles apply to drafts as to notes.. 1303 State member bank— Two general classes of eligible agricultural Advertising that it is under Government and commercial paper 1302 supervision 65 Automobiles and tires, acceptance of drafts seLimitations of section 9 upon amount of cured by warehouse receipts covering 65 rediscounts for 495 Borrower, limitations upon amount redisTime certificates of deposit subject to regulacounted for, by different member banks 278 tions of savings department 1065 Building materials, note for, eligibility for Water sold by irrigation company, as trade rediscount 699 acceptance 949 Certificate of deposit, form of 495 Whisky in bond, warehouse receipts covering.. 494 Clayton Act as applied to private bankers 948 Russian State Bank, gold reserves 144,1297 Collection of bill-of-lading draft received from Salaries in Federal Reserve Banks 54,1293 nonmember bank for account of member bank 948 Scandinavian countries, gold policy and foreign commerce of 35-46 Collection of checks drawn on a member bank Secretary of the Treasury: forwarded by another member bank with Address before American Bankers' Associainstructions to remit to a Federal Reserve tion 1123,1125 Bank 494 Houston, David F., appointed 121 Collection of maturing items for the account of On bonuses to soldiers .m 340 another Federal Reserve Bank 276 On credits to European countries 137 Collection of notes and acceptances 699 On future Treasury financing 113 Construction work, notes .for, eligibility for On income and excess-profits tax 341,1253 rediscount 699 1382 INDEX TO VOLUME 6. Page. Senate resolution: Page. 928 Relative to call-loan interest rates 345, 368 Tanning industry, terms of sale in Tariff, import, in Japan 1319 Relative to discount policy of reserve banks, reply of Board to 558,582 Tax: Certificates, Treasury, allotments of, July, Ship tonnage under construction in England 844, 1919-June, 1920 '. 729 1071,1202,1313 Income and excess profits 341,1253 Shipbuilding industry, terms of sale in 157 Legislation in Spain 692 Silk industry, terms of sale in 466 Legislation in Italy 489 Silver: Imports and exports of... 9,108,120. 209, 221, 326, 346, Terms of sale in the principal industries: Agricultural implements 1149 434, 454, 550, 565, 658, 671, 761, 780. 889, 909, 1003, 1018, 1120, 1132, 1249, 1262, 1366 Automobile accessories 261 Price of 7, 563,1128 Automobile tires 260 Automobiles 258 Purchase of, under Pittman A ct 563, 779 Blankets, woolen 470 Stock of, in the United States— Books 1037 By months 109, 210, 327, 435, Boots and shoes 930 551, 659, 762, 890, 1004, 1121, 1250, 1368 Brick 938 July, 1919-June, 1920 730 Builders' supplies 939 1917-1920 825 Soldiers, bonuses to 340 Carpets and rugs 471 Cement 938 South Africa, establishment of a central reserve bank in 1040 China ware 1031 South America, commerce with 1261 Coal and coke 265 (Seexdso Argentina, Brazil, Chile.) Copper 149 Corsets 811 Spa conference 779 Cotton manufactures 464 Spain, tax legislation 692 Dry goods 797 Speculative loans 342, 446, 554, 665, 774, 897,1012 Electrical goods 262 State banks: Engines and boilers 156 Members of system— Fur manufacturing 807 A cceptance liabilities of 158, 686 Furniture 936 Advertising that bank is under Government supervision 65 Glass and glassware 940 Banks admitted, by months 62, 159, 273, Gloves 812 383,^492, 607, 697, 833, 945, 1063, 1174, 1299 Hardware 150 Classification of loans and discounts of 333, Plats, men's and women's 808, 809 444, 766,1007 Hosiery 471 Condition reports, abstract of.. 329, 438, 764,1005 Iron and steel 148 Earnings and dividends of 660,1251 Jewelry 1032 Loans, investments, and deposit liabilities Laces and embroideries 473 of, June, 1919-May, 1920 728 Lead , 149 Regulations of Board regarding 1186 Leather manufactures 932 Resources, etc., of all State banking instituLumber 933 tions 891 Machine tools 155 Machinery 156 State banking laws: Men's clothing 803 ^ Mississippi law authorizing State banks to Men's furnishings 810 accept drafts and bills of exchange 701 Men's wear, woolen and worsted 469, 802 I Mississippi law relating to par collections 387 Millinery 808 Texas law authorizing trust companies to accept Music and musical instruments 1034 drafts and bills of exchange 950 Office appliances 1038 Stationery industry, terms of sale in 1037 Oils 267 Statistical review of condition of Federal Reserve Optical merchandise 1034 System, 1920 662-670, 723-733 Paints and varnishes 940 Steel industry, terms of sale in 148 Paper 1035 Store fixtures, terms of sale in the industry 936 Petroleum 267 Strauss, Albert, retirement of, as member of Board.. 348 Pottery 1031 Strikes: Railway equipment 156 Coal, in England 1198,1311 Ribbons, silk 466 Railroad, in the United States 574 Shipbuilding 157 Sugar, receipts and meltings 77,178, 291, 401, Silk 466 519, 628, 718, 857, 971, 1090, 1220, 1334 Stationery 1037 Sweaters, terms of sale in the industry 473 Steel 148 Sweden: Store fixtures 936 Bank of Sweden, condition statement 45 Sweaters, woolen 473 Foreign exchange rates in Stockholm 40,42 Tanning 928 Gold policy and foreign commerce of 35 Thread, cotton 464 Trade balance, 1912-1917 39 Thread, silk 466 Wholesale prices in, index of 32,166, 281, 938 392, 510, 620, 711, 849, 962,1080,1209,1324 Tile Underwear, cloth 812 Sugar production and exports 1163 Underwear, knit 472 Supreme council of peace conference on economic Varnish 940 conditions 363,451 INDEX TO VOLUME 6, 1383 Page. Terms of sale in the principal industries—Con. Page. Wire 148 Trust powers of national banks. (See Fiduciary Women's garments 805 powers.) Women's wear, woolen 469 Underwear: Wood pulp 1035 Production and orders 925,1027,1145,1275 Woolens and worsteds 468 Terms of sale in the industry 472,812 Yarns— United States notes, stock of, in the United States: Cotton 464 By months 109, 210, ?&7,435 Silk 466 551, 659, 762.890,1004.1121,1250,1368 Wool 468 1917-1920 '., _' 825 Zinc 149 Van Valkenburgh, Judge, opinion by, on right of Texas law authorizing trust companies to accept W& national banks having trust powers to use the drafts and bills of exchange 950 Tvords "trust company" as part of corporate title. 497 Textiles, manufacturing of 81,IS2,295, Varnish industry, terms of sale in 940 404, 522, 631, 721, 861, 974,1093,1222 1337 Vessels: Thread: Built in the United States 82,183,296, Cotton, terms of ss,ie in the industry 464 405, 523, 632, 722,862, 975,1094,1223,1338 Silk- tGtins of sale in the industry 466 Cleared in foreign trade, tonnage of.. 82,183, 296,405, Thompson, W, S.? resignation as director of Federal 481,524, 632, 722, 862, 975,1094,1224,1258,1338 Reserve'Bank of New York 10 War Finance Corporation, suspension by, of loans in Tile industry, terms of sale in 938 aid of exports 562 Time deposits and savings accounts, regulation of War paper, discount of 90,191,306, board regarding 1182 412,530, 641, 665, 741,870, 984,1101,1231,1348 Time schedule, interdistrict 746,987 Warrants, purchase of, regulations of Board regarding 1183 Title of national bank, use of words "trust company " as part of 497 Whisky in bond, warehouse receipts covering, as collateral 494 Tobacco, sale of revenue stamps for manufactures of 81,182, 295 Wholesale prices: Control of, in England, France, and Italy, 405, 523, 632, 722, 861, 974,1093,1223,133^ 1913-1919 243 Trade: Indexes of—• Foreign, index of 694, 841, 953,1068,1197,130! • Abroad 26,164, 279, Establishment of 694 388,506,616, 708, 842, 954,1069,1198,1310 Physical volume of— Establishment of 26 Discussion of 343, In the United States 30, 68,165, 453, 561, 668, 772, 906,1017,1125,1255 168, 280, 282, 392, 393, 499, 511, 611, 616, Index of 74,174, 288, 702, 712, 836, 850, 962, 963,1081,1210,1325 398,516,624, 714, 853, 968,1086,1216,1330 Review of. year 1920 668.1255 Wholesale trade, reports on, by Federal Reserve agents 570, 795, 926,1029,1143,1274 Retail, index of 53, 238, 377, 503,614,706, 839, 951,1066,1195,1258,1307 Wills, D. C, appointed member of Federal Reserve Board 1019 Establishment of 53 Review, year 1920 1258 Wisconsin, exercise of trust powers by national banks located in 700 bolesale, reports on... 570, 795, 926,1029,1143.127* Transportation situation 560, 581, 773 Women's garments, terms of sale in the industry.. 805 81,182, 295, Treasury financing 1,113, 213, 339, 445, 553,661, Wood pulp and paper, production of 405, 523, 631, 721, 861, 974,1093,1223, 1337 769,897,1011, 1123,1253 1035 Bond purchases suspended 445 Wood pulp industry, terms of sale in 468 Plan for future 113 Woolen and worsted industry, .terms of sale in Secretary of Treasury on foreign financing. . . . 137 Yarns: Cotton, terms of sale in the industry . 464 Treasury notes, stock of in United States. .. 109. 210. 327, Silk, terms of sale in the industry 466 435,551, 659, 762, 8)0, 1004,1121.12:,0, 1368 Woolen, terms of sale in the industry 468 "Trust company" as part of corporate title of 149 national bank having trust powers 497 Zinc industry, terms of sale in FEDERAL RESERVE DISTRICTS ® FEDERAL RESERVE BANK CITIES O FEDERAL RESERVE BRANCH CITIES The branch at Helena, Mont., has been authorized by the Federal Reserve Board but is not yet open f'jr business.