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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 5
John S. Walden 6
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 o—
f

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

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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.]
Live stock Grain and
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 o—
f
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
17.3
leading retail establishments in the several No.3..i 22.2 :! 20.3 ji26.2 20.5 30.9 31.0 23.8 24.9 19.6 23.9
No. 4..
36.0 38.2 33.6 32.1 34.6 29.9 27.3 25.9
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. 3
1,562
1,495
1,649
1,673
1,768
No.
1,633
1,318
1,931
1,998 2,119 2,272 2,403
2,115
1,709
the part of consumers who believe it wise to No. 4
574
595
652
722
779
No.5
640
549
781
772
885
872
897
910
735
"stock u p " in advance of actual needs. A No. 6
3,732 4,180 4,217 4,556
No. 7
3,975 3,307 3,713
875
868
919 I 934 1,032
1,027
837
better analysis of the general activity of trade No. 8
584
629
661 | 614
646
No. 9
713
477
1,092
1,242 1,125
1,131
1,321
No.
1,134
1,002
throughout the whole economic structure is No. 10
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 exchange media have been used for the purpose District. Aug. Sept., Oct., Nov., D e c , Jan , Feb.,
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. 7
4,552
4,777 4,704 4,959 5.134 4,320
4,328
1,224
945
1,073
1,111
1,043
916
1,008
index of the activity of exchange. Better than No.89
821
648
852
753
736
6172
770
No.
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
Sept.. Oct.,
Apr., May, June, July, Aug.,
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 N o . l2
22,919 21,991 21,376 20,208 19,791 18,007 18,237 20,817
No.
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
5,388 4,953 5,111 5,045 5,277 4,774 5,010 5,122
value in affording evidence as to the degree of No. 7
917
957 1,006
997
1,115 1,054 1,055
987
No.8
655
802
890
702
686
708
698
727
activity in the use of banking media and are No. 9
1,451 1,313 1,408 1,333 1,323 1,327 1,390 1,420
No. 10
726
633
786
670
614
652
645
652
accordingly deserving of unusually careful No. 11
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
shown each
United States increased from 34.7 billions in month in the FEDERAL RESERVE BULLETIN. weekly data necessary in
Caution is
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
New York Stock Exchange clearing house has which reference is made herein are essentially
7
to some extent altered the reports from dis- figures showing a "turnover ' of credit, or contrict No. 2. These facts may be more clearly stitute a factor in what economists describe as
7
set forth in a table designed to show the move- "velocity of circulation/ They indicate not




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 ,
i
r
c ., America. occurred which tend to empha- ciently high priced and not sufficiently salable
ooutn . .
.
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
181,542 and the remainder principally to Hongkong,
372,171
Jan. l t o Dec. 31, 1917
553,713
21,102
Jan. l t o Dec. 31, 1918
61,950
40,848
1291,651 Mexico, and Canada.
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 October as compared with 264 in
May, when prices wTere 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:

i October.

Lumber cut
Stocks
Shipments

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 $2,9
ared with 1,190 for the same month a year ago. 604,000, respectively. Of the an reporting
increase,
Istimated cost of construction was $4,804,735 cities, only Beaumont registers76.2 per cent,
Galveston showing a decline of
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.

mber of firms,

• 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,

cent.

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.]

epte
September.
Unfilled orders first of month..
New orders
Shipments
Cancellations
Production

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
[

i
i

September, 1920.

October, 1920.

White
goods.

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

Dyed
goods.

Printed
goods.

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

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

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

Total
Totalfinishingcharges billed during month:
District 1
2
.
.
.
3
5

White
goods.

57

6
8

Total.

23,308,869

2

3
5

Printed
goods.

10,384,678
2,081,937
6,035,052
4,767,537
37 665

Total finished yards billed during month:
District 1 ".

Dyed
goods.

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

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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

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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
to
Nearly every Government is being pressed to incur undigested floating obligations with must bethe fund the
which
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
proposals,
fluctuations and interfere with free dealings in forward ence believes the above-mentioned the league the conferthat the activities of
might
exchange which are so necessary to enable traders to fully be directed toward promoting certain reforms useand
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
lading.
The conference recognizes, however, that any general bills of reciprocal treatment" of the branches of foreign
The
improvement in the situation requires a considerable banks in different countries.
period of time, and that in present circumstances it is
The publication
not possible for certain countries to restore their economic comparative form. of financial information in a clear,
activity without assistance from abroad. This assistance
The examination
is required for periods which exceed the normal term of interest on which is of claims by the holders of bonds, the
in arrear.
commercial operations.
An
This assistance, however, can only be effectively accorded stolen,international understanding on the subject of lost,
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
An international
insuring
every effort to bring about within their own frontiers the the due payment byunderstanding which, while taxation,
everyone of his full share of
sincere collaboration of all groups of citizens and to secure would avoid the imposition of double taxation which is
conditions which give to work and thrift liberty to produce at present an obstacle to the placing of investments
their full results.
The conference does not believe that apart from the abroad.
It will
these recommendations involve
particular decisions dictated by national interests or by internal be seen that the several Governments and both
action by
considerations of humanity, credits should be accorded international cooperation. For the measures takenalso
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 7 .
30
273
45
100
22
76
8
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
A basis was thus afforded for determining
considered. Any single set of such figures the proportionate expenditures for each purwould, of course, be confined to one locality,
which Federal Rebut the method would be substantially accu- pose in each of the cities in The salary groups
serve Banks are located.
rate and would be applicable to other sections which were employed are as follows:
as well.
$2,400 and under $2,700.
It should be noted that this study does not Under $600. $900.
$2,700 and under $3,000.
and under
consider the extent to which salaries in the $600 and under $1,200.
$3,000 and under $3,300.
$900
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 curbanks, and rency note
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




a Oct. 16-29.
1
Nov 29.
2 Oct. 27.
3 Oct. 28.
4
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

Italy; note
reserves
of the 3
banks of
issue and
of the
National
Treasury.

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
255,809

2 473,660

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
serves of
Bank of \ Govern- fund of the the Bank
Argentine
Switzer- | ment
Governof Japan
land.
ment.
reserves.
and of the
Government.

79,280
80,693
84,384
92,490
110,444
166,414
241,424
379,597
430,072
472,041

10 60,994

634,300
648,500
683,900
786,800
803,400
831,200
758,396
a 667,041

Bank of
Belgium.

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
7 45,180

8 75,689

Bank of
Java.

National
Bank .
of Ruin ani

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

12
13
14

Bank of
Norway.

21,535
22,758
26,816
27,372
29,088
33,385
49,183
65,513
76,532
75,350

179,447
182,394
215,031
224,989
213,906
^228,939
" 251,158
" 252,390
"269,628
"299,119

74,789
100,631
104,077
115,375
94,626
120,335
119,598
120,143
121,261
119,212

Bank of
Sweden.

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 Oct. 30.
15
Sept. 30.
17 July 30 (see Revista de Economia Argentina, p. 71)
is Oct. 15.
19 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.




Capital. Surplus.

Name of bank.

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.
1920

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.

.

. ...

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

DISTRICT NO. 4.

1919

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
of
The following is the opinion, filed November by the United States for the Northern District of Georgia,
the appellee, the Federal Reserve Bank
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
collecting
Reserve Bank of Atlanta, last January. The checks drawn on appellants " except in from usual and
the
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
opinion published on page 496 of the May, 1920, ventbanks' counter. The appellants moved to checks over
the
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
par, by having such checks presented at the merits. the case, and (2) in dismissing the bill (on the
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
or
American Bank & Trust Company, et al., appellants, v. bill,association; and (2) because the appellants' petitionthe
as
a
Federal Reserve Bank of Atlanta, Ga., et al., appel- record, amended,itintroducedtheFederal question into
in that
charged
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 o—
f

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

91
.

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 o—
f

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

64
.
9.5

98
.

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).

Value.

1913.
January
February...
March
April
May
June
July
August
September..
October....
November..
December..

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.
4 End of July, 1914=100.
5
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
The detailed mode of
at the end of September. Holdings of coin and owing to the Russian revolution. with all other questions
discharging this liability, together
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
to in the preamble.
owever, in the situation with regard to the treaty referred Government makes a corresponding declaThe British
floating 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.

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

Monthly average, 1913

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.]
Dec. 31,
1918.

Credit Lyonnais
Comptoir National d'Escompte de Paris.
Society Generate

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 h 2
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
(000,000's) (000,000's) purposes revenue (000,000's) perpetual
(000,000's) (000,000's)
of the (000,000's)
rente.
war 2
(000,000's)
1913, average...
1920, end of—
January...
February..
March
April
May
June
July
August
September.
October...

3,343

629

830

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

5,665

3,602
3,603
3,606
3,608
3,609
3,610
3,611
3,612
3,531
3,537

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, Foods Min- Tex- Sun- mate- at 125,000. The greatest depression has ocmal table and
Date.
(20). erals. tiles. dries. rials
curred in the metal, textile, and leather infood. foods.
(25).
cocoa.
dustries. The Syndicate of the Metallurgists
of the Seine reports that of its 160,000 workers
100
100
100
100
100
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.
8
1913 average 3 ..
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.
* Calculated in 1913 value units.
3
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 cirund Dar- culation. Deposits.
lehns-

kassenscheine.
28,218

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

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
railroads
2, 600
probably caused by the unfavorable rise in ex- To other industries
To other
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.
Feb.

Aluminum
Antimony
Lead
Copper (refined)
Nickel
Zinc
Tin
Quicksilver

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.
1911

First quarter
Second quarter
Third quarter
Fourth quarter
Entire year..
First to third quarter

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

Brussels. Christiania. Stockholm.

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 o—
f
January.
February

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.
.
s The present rates vary from 1.30 to 1.34 yen per 100 kin.
4
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.

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




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

1913
1914
1915
1916
1917
1918
October
November
December

Farm
products.

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.]

Grains

Date.

Animals

and

and

fodder.

meats.

Dairy
products.

Fruits
and
vegetables.

Other
foods.

Textiles.

Hides,
leather,
etc.

Metals.

Imple- Building Fuel and
ments. materials, lighting.
lumber.

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
Other
Oils. jute. seeds. Tea. Sugar. Pulses. Cereals. 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 7
May, 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

Rela- Average Relative price per tive
100
pounds. price. pound. price.

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

..

..

....
..

..

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

Average Relaprice per
tive
long ton. price.
$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.

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




.
.

.

.

.

. . . .
.

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.
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

Relative
price.

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

8*74

H. L.
7 6
7 6
7 6
7
6
7
6
6
7
8
7
8
8
7
7
8
6

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

6J 6
6 6
7 7

7 74
7 74-8
6i 6
64 6i

7
74

Demand.

8 7
7 6

3 to 6
months.

3 months.

Ordinary
loans to
customers
Secured b y secured b y
warehouse
Liberty
receipts, bonds and
etc.
certificates
of indebtedness.

L. C. H. L. C.
T. L. C. H. I -. C. H. L. C. H. L. C. H. L. C.
6i |
8 8
4
74 74 8 74 74
4
6
6 6 i - 7 | 10 4 6-9 8 5 6 7 8 5 6-7
5 6-7
41
7
7 6
7
6 6-7
6
6
6
54 6 6 5 | 6 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 6 " 7 8 6
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

Unindorsed.

8

8
7|
81 8

C. H. L. C.
64
7 7 68 6 |
7

8 6

8 7|
8 8
8 7

Cattle
loans.
Indorsed.

8 64
74 7
8 6
84 7

84 !
8 7|
8 8
8 7

Collateral loans—stock exchange
or other current.

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
4
64
. . . . . . . . 10 6
74
7

74
7

7
8
8
8
2

6
6
64
7

w

7
7

?*

4
74
8
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.

Sheep, 60 Horses and
mules, 44
markets.
markets.

Total, all
kinds.

Cattle and
calves, 54
markets.

Hogs, 54
markets.

Sheep, 54 Horses and
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.

Total, all
kinds.

Sheep.

830,825

106,625 1,384,404

2,321,854

346,430
237,939
240,121
242,996

October, 1919...

January
February
March
April

Hogs.

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
~~
871',617,544
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-| Bushels. Rela- Bushels. RelaRelaRelaRelaBushels. tive. Bushels. tive. Bushels. tive. Bushels.
tive.
tive. Barrels. tive. Bushels. tive.
tive. i
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

RelaRelaBushels. tive. Bushels. Rela- Bushels. tive. Bushels. Rela- Bushels. Rela- Bushels. Rela- Barrels. Rela- Bushels. Relative.
tive.
tive.
tive.
tive.
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 6,506,053
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.

Rye.

Oats.

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.
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

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

83

7,299,667

66

308,262
771,590
],463,041

Season total.

26
50
146
195
177
126
90
64
44
29

12,432,856

August
September.
October
November..
December..
January
February...
March
April
May

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.

Lemons.

Total citrus fruits.

Total
deciduous
fruits.

Carloads.

Carloads.

Relative.

Carloads.

Relative.

2,706

October, 1919

Relative.
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




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- Producments. ber of
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

Ship-

Douglas fir.
Number of Producmills. tion.

Ship-

143,252
69,895
85,583
130,425
167,165
183,621
197,461
177,262
171,143
164,312
146,424

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.

Anthracite coal, esti- Beehive coke, estimated
mated monthly promonthly production.
duction.
Short tons.

Relative.

Short tons.

S, 459,000

56,243,000

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

Relative.

131
116
126
102
107
118
123
131
138
137

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.
13,925,441
• 1920.
Jan. 31
Feb. 29
Mar. 31
Apr. 30
May 31
June 30
July 31
Aug. 31
Sept. 30

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

Sept. 30, 1919

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

6,472,668
7,128,330
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

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.]
Cattle
hides.

1

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

1920.

Jan. 31
Feb. 29
Mar. 31
Apr. 30
May 31
June 30
September 30.

Kipskins.

6,158,289

September 30,1919.

Calfskins.

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.

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

Wood
pulp.

Fine.
1920.
May
June
July
August
September
October

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.

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.

Manufactured
tobacco.




Cigarettes.

Large.
1920.
May
June
July
August
September
October

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.

89

55

10,445

3,715

48
43
45

22
85
59
96

4,650
3, 960
3,053
2,313

Domes- Foreign
tic
comshipped. pleted.

Total.

Number. Number. Number. Number. Number.

14,160

1,914
1,066
2,040
1,934

Output of cars.

May
June

1920.

Julv
6,56! 1 August
5,026 ! September
5, 093 ! October
4,247

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

Total.

2,073,560

4,719,338

121

56.1

1,949,798
1,628,212
2,040,538
1,960,634

1,933,385
1,702,407
2,040,031
2,504,038

Net tonnage.

PercentRela-j age Relative. I Ameri- tive.
can to
total.

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-

American. Foreign.
1920.
May
June
July
August
September...
October

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.

Soft coal.

Hard coal.

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
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,
loss through settlements of $446,656,697. fund, 18, 1920, both inclusive. from Aug. 20, 1920, to
Nov.
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
bank being due largely to the transfer of gold to Settlements of—
$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
from the banks amounting to $153,778,000, Total since Jan. 1, 1920
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
5,533,966,000.00
Following are figures showing operations Total for 1916
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.

Transfers.

Aggregate
deposits and
transfers from
agent's fund.

Aug. 19, 1920.

Gold
withdrawals.

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

Federal Reserve Bank of—

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.

$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

21,821,566,124.24

:, 376,101.95

Summary of changes in owner
ship of gold by banks througtransfers and settlements.
Decrease.

$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

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.

Debits.

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
Gold
Federal Reserve Agent Balance last
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.

156

Oct. 27.

Nov. 3.

Nov. 10.

Nov. 17.

Nov. 24.

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

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

1919
Week ending—

1920
Week ending—
Oct. 29.

Nov. 5.

Nov. 12.

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. 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, as against 17 millions in September; bankers7 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 maturities, the proportion of member banks7
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 declined somewhat in amount. Of the bankers7
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

SepOc- Septem- tober. tember.
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, 0491, 229,465
L
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.

O
f

I 1919.

October
November
December

2,073
2,146
2,157
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;

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

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

1919.

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 I United
1 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

$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.

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

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

Earnings from—
Federal Reserve Bank.

United States
securities.

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

17,085,802
9,084;863

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.

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.

Foreign.

Total
bills purchased.

Dollar
exchange
bills.

Federal Reserve Bank.
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

$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

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

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

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

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

197
394

1,389

448

971

Total.

95,836
410,934
59,404
154,337
60,070
50,680
279,918
65,606
13,364
33,713
25,900
68,638

23

3,831

Commercial
paper
n. e. s.

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

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

Kansas
City.

anta.

Rich-

3,670
3,808
3,785
3,641
3,450

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, 5 a
8
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

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

|
I
|
!

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

497 i
486 !
322
474 !
301 !

10
10
10
10
10

28,560 94,637
27,588 91,283
26,629 97.814
24,189 110,963
22,982 108,219

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

81 199
51 389
55,414
35,604
27,217

5
12
19
26

27,129
32 550
24,503
16 352
14,760

3 197

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.

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?
84,464 258,281 3,325,53?

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




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
{
!
!
j
1
!
j

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

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

28,710
32,595
36,686
48,613
51,695

27,330
22,631
20,054
18,510
16,328

15,370
12,178
16,592
80,051
35.027

Over 90
days.

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
2,314,900
400 2!
2,326,500
4002:
2,330,200
4002:
2,362,400
400 2'

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
5,086,100
538, 240&

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

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

3,500
3,500

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 ar
A tt ll a n it taa

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 3,000,646
203,
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 8;
5,316,464
5,359,254
203,918 614, 0018.

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.

46,663
46,663
46,959
47,459
47,459

Atlanta.

Chicago.

St.
Minne- Kansas
Louis. apolis. City. Dallas.

San
Francisco.

Total.

81
81
81
81
80

115
115
115
115
115
12,609
12,610
12,610
12,610
12,610

Richmond.

11,347
11,347
11,347
11,347
11,347

42,295
42,400
42,428
42,428
42,440

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.

Kansas
St.
Chicago. Louis. j Minne- City. Dallas.
apolis.

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.]

Philadelphia.

Boston.

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

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.
Chicago. Louis. Minne- Kansas Dallas.
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

1,912
2,093
1,797
1,680
1,555
11,871
11,757
11,175
8,945
6,610

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
CleveRichAtlanta4 Chicago St. Louis Kansas
Dallas San FranYork
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.]
New
CleveRichAtlanta Chicago St. Louis Kansas Dallas San FranCity
cisco,
land
mond
York
6
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.
3 Baltimore.
4
New Orleans, Jacksonville, Nashville, and Birmingham.
* Detroit.

6

Louisville, Memphis, and Little Rock.
i Omaha, Denver, and Oklahoma City.
s El Paso and Houston.
9
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.
During 10
days ending Oct.
20, 1920.
$13 834
257
2,781,071
6,515

Belgium..
Denmark
France
Germany
Greece
Iceland
Italy
N et h erlands
Norway
Portugal
Russia in Europe
Spain
Sweden
Switzerland
United Kingdom:
England
Scotland

354 944
26,663,950

Total EuroDp

29,820,571

Total North America




$299,329

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 11
days ending Oct.
31, 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

From Jan. From Jan. During 10
end1 to Nov. 1 to Nov. days Oct.
ing
10, 1930.
10, 1919.
20, 1920.

45,767

74,870

122,160

8,557

494,832

1,356,661

2,241,393

896,510

10,916,346

2,388,362

$171,167

$595,785

$128,587

19,000
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

263,050

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

285,918

30,000

280,000
400,000
700,000
236,000
6,300
3,653,376
12,850,000
184,000

258,711

651 filQ

$m,499

50,000

30,000

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

176,573

176,573

.

Total, all countries
Excess imports or exports

. .

2,849,567

10,000,000

33,042,737

176,573
15,853

123,868
72,687

486,650
63,348
45,786

486,650
1,734,227
818,685

423

82,971
56,834

423

45,168,325

116,762,001

18,256,070

18,144,148

38,156,603

90,830,762

6,218,451

1

28,286,750

32.656.908

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

31,573,046
73,578,715
23,000

165,374,633

173,177,469

; •;

683,123
489,173

333,774,818

102,500
240

;

8 150

39,446

499,324
62,175,252

36,474,035

SO 2 9 3 OQ1
1

i

280,358
31,636,047

3,000,000

3,416,333

30,191,910

Total Asia
Australia
New Zealand
Philippine Islands
British East Africa
British South Africa
British West Africa
Portuguese Africa

ijil'

3,000,000
8,630

1,260

--

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

2,760
42,240

$42,240

1,834

During
From Jan. From Jan. During 10 During 11 month of During 10 From Jan. From Jan.
endendend1 to Nov. 1 to Nov.
1 to Nov. 1 to Nov. days Oct. days Oct. October, daysNov.
ing
ing
ing
10, 1919.
10, 1920.
10, 1919.
10, 1920.
10, 1920.
31, 1920.
1920.
20, 1920.
$32,428

$3,503

1,834

$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

111, 430
172,203
15,324,282

28,256

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

44,348
535
235,167
18,137
1 576
30 782
812^ 815

11
56
667,542

5,123

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

200

.

Argentina
Bolivia
Brazil
Chile
•Colombia
Ecuador
British Guiana
Dutch Guiana
Peru
Venezuela...

3,829
35,177
2 941

866,855
7,429
13,000 i
388
4 322
626 1

100,000

. .

1
1
I
j
1
I

395,330
41

516, 752
85

542, 852

358,165

Total South America




During 10
days ending Nov.
10, 1920.

$24,267

2 010

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

China
Chosen (Korea)
British India
Dutch East Indies
French East Indies
Hongkong
Japan

During
month of
October,
1920.

$24,267

Total Europe

Total North America

During 11
days ending Oct.
31, 1920.

CO

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

72,723

181,112

741

8,535

9,276

4, 500

50,000

26,050
3,000

27.356
1,250,904
25,000
316 000

16,050,136

9,554,358

184,045 |
585

I
!
!
!

10,328
161
150,000

9,000

j
i

141,835

249,250
1,500
1,195,253

3,047, 074

54,500

61,446
108,487
2 155
1, 571,180 j
196 170
13, 670
121
265 ,
7,600,266
598

3 328

j

90,120

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

390,537
585

12,125,294

6,205,060

12, 723

80,694

2,230

2,333

852

2,000

1
j

1,402

2,493
5,063

10,000

50,000

585

26,458

62,638

283,627

2,824,081

59,241,013

39,351,245

223,211

> 1 271 399

585

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

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

$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
Federal Reserve United States
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*

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.

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

Total:

346,681,016
3,663,517,685
238,601,900
732,549,629

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 are subject to a £ per cent progressive increase for each
line j
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,
Countries in which banks may accept drafts to fur402, 480, 520, 629, 719, 858, 972,1091,1220,1335
nish 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,
Employees, Federal Reserve Banks:
412, 530, 641, 665, 741, 870, 984,1101,1231,1348
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
1039
Business conditions, description of
474 Jamaica, law regulating foreign banking in
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 o—
f •
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







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