Full text of Federal Reserve Bulletin : December 1939
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FEDERAL RESERVE BULLETIN DECEMBER 1939 Recent Gold and Capital Movements Economic Controls in Foreign Countries Amendments to Regulations F and H Annual Report of Foreign Central Banks Netherlands and Argentine *** BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM CONSTITUTION AVENUE AT 20TH STREET WASHINGTON TABLE OF CONTENTS Review of the month. Recent gold and capital movements; Economic controls in foreign countries National summary of business conditions Summary of financial and business statistics Law Department: Financial Transactions under Neutrality Act of 1939 Amendments to Regulation F—Trust Powers of National Banks Amendments to Regulation H—Membership of State Banking Institutions in the Federal Reserve System : Number of banks and branches 1933-1939 Analysis of changes in number of banks and branches; January 1-September 30, 1939 Restoration of Netherlands Government's power to prohibit the export of gold Annual Report of the Netherlands Bank Annual Report of the Central Bank of the Argentine Republic Financial, industrial, and commercial statistics, United States: Member bank reserves, Reserve bank credit, and related items Federal Reserve bank statistics Reserve position of member banks; deposits in larger and smaller centers Money in circulation Gold stock and gold movements; bank suspensions; bank debits All banks in the United States.... All member banks Condition of reporting member banks in leading cities Acceptances, commercial paper, and brokers' balances Federal Reserve bank discount rates Money rates and bond yields Security markets Treasury finance Governmental corporations and credit agencies; Postal Savings System Production, employment, and trade Wholesale prices Crop report Statistics for Federal Reserve chart book International financial statistics: Gold reserves of central banks and governments Gold production Gold movements, International capital transactions of the United States Central banks Bank for International Settlements Money rates Discount rates of central banks Commercial banks Foreign exchange rates Price movements: Wholesale prices ^ Retail food prices and cost of living Security prices Federal Reserve directory: Board of Governors and staff; Open Market Committee and Staff; Federal Advisory Council Senior officers of Federal Reserve banks; managing directors of branches Index to volume 25 II Page 1039-1049 1050-1051 1053 1054 1054 1054-1064 1065 1066 1067 1068-1076 1077-1094 1096 1097-1101 1102 1103 1104 1105 1106-1107 1108-1111 1112 1113 1114 1115 1116-1117 1118-1119 1120-1128 1129 1130 1131-1132 1134 1135 1135-1136 1137-1139 1140-1143 . 1144 1144 1145 1145-1146 1147 1148 1149 1149 1151 1152 1153 FEDERAL RESERVE BULLETIN VOL. 25 DECEMBER, 1939 REVIEW OF THE MONTH From the outbreak of war to the middle of November acquisitions of foreign gold by the United States Treasury Recent gold and through import and release capital movements _ from earmark averaged $50,000,000 a week as against a weekly average of $60,000,000 in the preceding twelve months when the gold movement reached its peak. The current movement reflects to a large extent the need of foreigners for dollars with which to pay for the excess of exports from the United States, which amounted to $107,000,000 in September and reached a new high level for recent years of $117,000,000 in October. Reported figures show little net movement of capital since the end of August. A small inflow of funds from neutral countries has been offset by utilization of dollar deposits and selling of American securities by belligerents. Transactions not covered by current statistics were apparently substantial. When war broke out the third large flight movement of capital from Europe to the United States in less than a year was in progress. The first of these movements occurred in September and October 1938 and was connected with the events immediately preceding and following the Munich settlement; the second began in March 1939 following the German move on Prague; and the third commenced early last August. In a space of only twelve critical weeks—four in September 1938, five in March and April of this year, and three immediately preceding the outbreak of war—$1,600,000,000 of foreign gold came to the United States. Largely as a result of No. 12 the three crisis movements the inflow both of gold and of capital to the United States in the twelve months ending August was considerably larger than at any previous time. It brought the total inflow of gold since January 1934 to $9,000,000,000 and the recorded net capital inflow to $5,300,000,000. Most of the difference between these two figures is accounted for by the $2,600,000,000 excess of merchandise exports of the United States and by transactions that have not been identified. Of the recorded capital movement a third represented the return of American capital from abroad and the accumulation of dollar balances by foreign official institutions; the remainder represented private funds sent here by foreign nationals for deposit in banks or for the purchase of American securities. The full movement of funds, including unrecorded transactions, may have been considerably larger. Half of the private movement of foreign capital to the United States in the period since early 1934 came British foreign from the United King- exchange regulations dom, France, and the countries of the British Empire. To bring a halt to this type of capital outflow and to obtain control over funds sent abroad in the past the British and French Governments have imposed strict foreign exchange regulations. In the United Kingdom the export of currency and gold has been subjected to license and the business of dealing in foreign exchange has been centralized in the Bank of England and the principal commercial banks acting under its supervision. Initially all purchases of foreign exchange, and all transfers of sterling from the accounts of residents 1039 1040 FEDERAL RESERVE BULLETIN DECEMBER 1939 of the United Kingdom to those of non-resiEarlier in the year, before the war crisis dents, were prohibited except on application reached its peak, fluctuations in sterling had to an authorized dealer. Transactions for been held within a narrow range by official the purpose of liquidating old contracts, de- gold operations, but on August 25 the British fraying reasonable travelling expenses, or Fund withdrew its support and the rate fell meeting reasonable business requirements EXCHANGE, RATES IN NEW YORK such as payments for imports, insurance premiums and claims, or freight charges, were for the most part freely approved, but others were subject to special review. Subsequently these provisions were somewhat modified, the most important new ruling providing that transactions with British territories other than Canada, Newfoundland, and Hong Kong were not subject to restriction. Exchange regulations adopted throughout the Empire were essentially similar to those of the United Kingdom. As a further limitation on the power to export capital, residents of the United Kingdom are required, with certain exceptions, to sell to authorized dealers for account of the Government all receipts of currencies of the United States, Argentina, Belgium, Canada, France, Netherlands and Netherlands East Indies, Norway, Sweden, and Switzerland. Both sales and purchases of exchange on these countries in London must be carried out at the official buying and selling rates Certified noon buying rates for cable transfers. fixed by the Bank of England; other exchange dealings take place at rates established in the sharply. For several days it moved erratimarket. The official buying and selling rates cally in an uncontrolled market. When the for dollars are $4.04 (originally $4.06) and new exchange regulations and official rates first became effective the New York quota$4.02 respectively. While non-residents of the United Kingdom tion steadied at the new level, but it subseare subject to the same restrictions as resi- quently turned irregularly lower. Quotations dents in the matter of purchasing foreign in New York and other foreign centers, howexchange through authorized dealers at the ever, apply to only a part of the total volume official or market rates in London, they are of transactions; the rest are carried out in apparently not prevented from selling their London at the official rates. sterling abroad. It is this provision that has The chart also shows the trend of New made it possible for foreigners to deal in York quotations for the Canadian dollar and sterling exchange outside London at vary- the Netherlands guilder. The former is the ing rates. The chart shows that the rate for only British Empire currency which has not sterling in New York, for example, has not closely followed the course of sterling; the generally remained within the spread of the latter is representative of several currencies, official buying and selling rates in London. including the Swiss franc and Swedish krona, AUGUST - NOVEMBER, 1939 AUG. SEPT. OCT. 1939 NOV. DECEMBER 1939 1041 FEDERAL RESERVE BULLETIN which have been held relatively steady in terms of the dollar. Besides prohibiting the current export of capital, the British regulations contain provisions concerning certain assets acquired before the war began. Under these provisions residents of the United Kingdom who are owners of gold or of foreign exchange denominated in the currencies of the specified countries mentioned above must offer such holdings to the Treasury unless it can be shown that they are required for approved purposes. Stocks, bonds, and other securities payable in the specified currencies can be sold or transferred by residents only with the permission of the Treasury, and the Treasury is given power to acquire such securities at some future time. Acting under this authority the Treasury has requisitioned holdings of the Canadian 3!/2 per cent sterling loan of 1930-1950, amounting to about £28,000,000; this will make it possible for the Canadian Government to redeem these obligations in advance with part of the proceeds of a $200,000,000 issue of 2 per cent two-year notes sold to banks in Canada, and will provide the British authorities with a substantial amount of Canadian exchange. There is no evidence that other securities have yet been requisitioned but sale of securities in foreign markets has been permitted in certain cases on condition that the foreign exchange proceeds be delivered to the Treasury. There has been some selling of this character in the United States. To enable the Treasury to pay for foreign assets acquired under the new regulations the previous limit of £575,000,000 on the borrowing power of the Exchange Equilization Account has been removed. The export of capital from France in any form has been prohibited. The regulations forbid the purchase French foreign # abroad of any property export of any holdings of securities, claims to foreign exchange, and similar assets, is forbidden. The regulations are administered by an Exchange Bureau operated by the Bank of France, and foreign exchange dealings are centralized in the Bureau and banks acting under its direct supervision. Exchange will be made available for necessary and approved commercial transactions, for payment of debts arising from transactions undertaken before September 10, 1939, and for certain other purposes. The offer to the authorities of gold and foreign balances held at the outbreak of war has not been required in France as it has in England. All such holdings as well as foreign securities held abroad on December 31, 1939, and in some cases foreign assets held in France, must be declared before January 15, 1940, however. Dealings in foreign securities have not been restricted, but owners of foreign assets subject to declaration must be prepared to explain transactions negotiated after December 31, 1939, and the foreign currency proceeds of security sales must be turned over to the Exchange Bureau. Complete figures on the foreign assets of the belligerent countries are not available. It is believed, however, Foreign resources t h a t t h e i r holdings in the of the belligerents • i , United States include a large part of their more readily disposable resources—gold and short-term balances and securities denominated in the currencies of countries with relatively free and well-developed financial markets. So-called direct investments in controlled enterprises such as railways and other utilities, mines, oil wells, manufacturing enterprises, agricultural properties, and other real estate, which bulk large in British overseas investments, are less likely to be readily marketable. Some of these assets are situated in the United States, as exchange regulations shown in the table below, but a larger part is or securities. All foreign held in Empire and other countries not highly exchange received for exports or services industrialized. There is a certain reluctance, abroad must be returned to France, and the moreover, to lose control of such enterprises 1042 FEDERAL RESERVE BULLETIN through sale to foreign interests. Obligations issued by governments and municipalities in the less highly developed countries, of which British investors hold a considerable volume, do not possess the ready availability of gold and of balances and securities denominated in dollars and other leading currencies, although they may be negotiable under certain conditions in the countries of issue. The table below presents data on the estimated distribution at the end of August 1939 of foreign balances and investments in the United States and of central gold reserves, together with estimated gold production in 1938. Figures of dollar resources for dates since August have not yet been published. The first column of the table shows total holdings of the more readily available international resources—gold, dollar balances, and American securities. It does not include direct investments in the United States. The DECEMBER 1939 figure for all countries is nearly half again as large as the export surplus of the United States during the four years of the World War, which amounted to $11,800,000,000. Approximately half of all foreign holdings of gold and dollar resources at the present time is under the control of the British Empire and France. During the World War little more than a quarter of the export surplus of the United States was paid for through the sale in this country of gold and American securities held by foreigners, as shown in the first table on the next page. The remainder was covered by foreign borrowing in the United States. The present situation differs in a number of respects from that of twenty-five years ago. The Neutrality Act passed early in November has closed the American capital market to belligerent Governments, and a number of other potential borrowers are debarred under FOREIGN HOLDINGS OF GOLD, DOLLAR BALANCES, AND AMERICAN E N D OF AUGUST INVESTMENTS 1939 [Approximate figures in millions of dollars] Gold, dollar balances, and securities r Direct and other Annual investments gold (various production bases of (1938) value) Securities readily negotiable Country>r area Central Total gold (cols. 2-4) reserves (market value) Dollar balances Total (cols. 5-7) 1 Belligerents: United Kingdom Franee Canada __ . Other British and French countries... Total British Empire and F r a n c e Germany Neutrals: Italy Netherlands . Switzerland _. U. S. S. R. Other European countries Latin America 6 Far East and other 8 Total neutrals All foreign countries. .._ 2 3 Common Preferred stocks stocks 5 4 Bonds 7 6 8 9 3,330 3,500 1,070 540 i 2,000 13,000 215 540 595 315 355 * 735 185 500 535 130 400 * 120 15 60 * 80 40 40 * 900 80 560 8,440 160 5,755 3 150 1,265 10 1,420 * 1,065 * 195 * 160 * 1,540 * 200 1,400 1,250 1,000 2,750 1,090 1,110 4 190 770 590 6 1,000 2,190 660 375 10 160 285 * 430 390 355 * 470 375 * 130 40 380 * 270 295 * 25 30 * 30 5 20 * 175 50 * 380 170 35 5 25 120 10 180 6185 10 90 115 65 30 335 (2) 165 585 750 (2) 8,800 5,775 1,630 1,395 995 110 290 860 400 17,400 11, 680 2,905 2,815 2,060 305 450 2,400 1,150 * Small amounts not published separately. 1 Broad Broad estimate, estimate, based based on on latest latest reported reported figures of Stabilization Fund holdings and data on gold movements. 2 Less LLess than th than $5,000,000. $5000000 $5,000,000. 3 Broad B d estimate, t i t b based on probable acquisitions of gold from private note-issuing banks in 1935, Austria in 1938, and Czecho-Slovakia in 1939, adjusted for net exports since 1935. < Reported figure for December 1938. * Estimate based on scattered data. • Includes small amounts for British and French possessions 1043 FEDERAL RESERVE BULLETIN DECEMBER : UNITED STATES BALANCE OP PAYMENTS JULY 1914-DECEMBER 1918 [In billions of dollars] Payments Item Excess of merchandise exports Payment effected through: Gold imports 1.0 Estimated European sales of American securities 2.0 Total gold and securities- Receipts 11.8 3.0 Foreign loans sold to private investors in United States 1.5 Direct advances by United States Government after April 1917 _. 7.3 Total loans to foreigners Estimated net service payments to foreigners. Net receipts from unidentified transactions FOREIGN HOLDINGS OF GOLD AND DOLLAR RESOURCES 1914 AND 1939 [Approximate figures in millions of dollars] _.. 0.4 0.4 12.2 Country 12.2 Source: Review of Economic Statistics, Volume I, p. 251. the Johnson Act. On the other hand, the dollar value of disposable international resources is much larger than in 1914. Estimates of pre-war foreign investments in the United States are subject to a wide margin of error, and no classification by type is available. The data presented in the following table, however, indicate that foreign dollar resources plus gold holdings are currently perhaps twice as large as in 1914; and the dollar value of foreign gold production is three times as large. Finally, there is a greater readiness to use gold reserves. The belligerent powers as a group emerged from the World War with considerably larger central gold reserves than they possessed at its beginning. While this was directly attributable to the return of gold coin from circulation, a considerable amount of which was, in fact, shipped abroad, it also reflected a desire to maintain gold reserves in preparation for an expected return to the gold standard after the war. In the present instance, however, none of the belligerents was on the gold standard at the outbreak of war, and the two holding most gold took immediate action to make their entire gold reserves available for international use. In Great Britain the gold holdings of the Bank of England were transferred in their entirety— except for a nominal amount of less than $1,000,000—to the Exchange Equalization Account, and the fiduciary note issue of the Bank was increased correspondingly. In France the requirement that the Bank of France maintain a gold reserve equivalent to 35 per cent of its total sight liabilities was suspended. The German Reichsbank has had no effective legal reserve requirement since 1931. Total gold and dollar resources 11939 Leading belligerents: United Kingdom France Canada Germany Other countries: Netherlands Allother All foreign countries 1914 4,230 2, 765- 3, 965 3,580 1,080- 1, 280 1,630 4 115 160 1,030- 1, 330 660- ! 1,780 8,420 2, 450- 2, 550 19,800 8,100-10,100 Central gold reserves 21914 Dollar resources 3 1914 165 2, 600-3,800 400- 600 115 (6) 6330 700-1,000 2,250 600- 800 200- 300 3,600 4, 500-6, 500 1 Data from table on page 1042, including direct and other investments (column 8). 2 Figures are for end of December 1913. Monetary gold outside central reserves in leading countries in 1914 has been estimated as follows, in millions, of dollars: United Kingdom, 600; France, 965; Germany, 475; Kussia, 255; estimate for Russia from European Currency and Finance, Vol. II (Commission of Gold and Silver Inquiry, 1925); other estimates from Currencies after the War (League of Nations, 1920). 3 Lower figure for all countries is estimate given in Review of Economic Statistics, Vol. I, p. 230; higher figure and distribution by countries based on estimates of Sir George Paish, given in Report of National Monetary Commission, 1910. 4 Gold only; see note 5. 6 No estimate available; included with "All other" countries. 8 Includes $50,000,000 of gold held by Government as war reserve (Annual Report of the Reichsbank, 1914) .£;, • The financial measures taken by the United Kingdom and France are designed to conserve and mobilize their Economic controls international resources. m foreign countries . . . . As such they constitute one segment of a broad economic and fiscal program for making the most effective use of available international resources and internal productive facilities. This program involves the establishment of rigid controls over imports and exports and over the internal production, use, and prices of essential commodities. It also involves a sharp increase in governmental expenditures and a revision of the tax structure. As a supplement to their independent efforts the British and French Governments announced around 1044 FEDERAL RESERVE BULLETIN the middle of November a plan for coordinate action in a number of fields; henceforth import programs will be drawn up jointly and direction of their combined merchant fleets will be centralized in London. In Germany the control of international transactions and of domestic business had already reached an advanced stage of development before the war began. The new measures, therefore, have constituted an extension of the previously existing system rather than a fundamental change. The adoption of various types of control measures has not been confined to the belligerents. A number of neutral countries with previously free markets have invoked exchange restrictions, and others have tightened existing regulations. Few countries now have free exchange markets. Neutral countries have also endeavored to protect themselves against possible shortages of essential commodities as a result of the war. Nearly every country in Europe and some on other continents have subjected exports and imports to controls of varying extent and severity. A smaller number, including the Netherlands, Switzerland, Sweden, Norway, and Denmark, have taken steps of an internal character. With differences as to countries and commodities affected, maximum prices have been set, the allocation of raw materials to industry and the disposition of finished products have been taken under official supervision, and limits have been placed on the use of certain commodities. Shortly before the outbreak of war the British Government prohibited the export of many essential raw United Kingdom—control of imports and exports materials such as . rubber and various non-ferrous metals. Subsequently nearly all exports were made subject to license or other types of regulation, and control over imports was established. The importation of passenger cars, various types of clothing, jewelry, and other manufactured articles of a luxury DECEMBER 1939 or semi-luxury character was prohibited. For goods falling less definitely in this category, or which are manufactured in sufficient quantities in the United Kingdom, such as textiles, leather and rubber manufactures, and certain types of machinery, importation was made subject to license. In the case of most raw or semi-finished industrial materials and foodstuffs the Government has either reserved the sole right of purchase abroad or exercises indirect control through the granting of foreign exchange permits, allocating cargo space in British ships, regulating the distribution of supplies within the country, or establishing maximum sterling prices at too low a level to allow purchases abroad. To ensure an adequate supply of certain essential raw materials and foods the British Government has negotiated special contracts. It has arranged, for example, to purchase the entire exportable surplus of wool, lead, and zinc from Australia and New Zealand for the duration of the war and has entered into more limited contracts with Empire and other countries for bulk purchases of such articles as meat and dairy products and copper. British Empire production of many basic commodities is well in excess of recent consumption in the Empire and France. Sharp declines in the volume of British exports and imports in September were to some extent the result of temporary influences such as the sudden disruption of shipping schedules and the imperfect functioning of the new license-issuing machinery. They also reflected severance of trade with Germany and the war-time reorganization of British business. The October figures for imports, and to a much smaller extent for exports, were higher than in September, but both remained well below those of a year ago. Internal trade in a considerable number of important commodities has been subjected to direct control in the Internal control United Kingdom. The type and degree of supervision varies widely. Trading in many raw foods has been placed DECEMBER 1939 FEDERAL RESERVE BULLETIN 1045 under the Ministry of Food, which exercises 37V2 per cent and certain exemptions were virtually complete authority over stocks, im- lowered; surtax and estate tax rates were ports, and wholesale distribution. Maximum raised; and a general excess profits tax was prices have been set in a number of instances imposed. Increases in indirect taxes affected and plans for rationing are under way. Thus mainly alcoholic beverages, sugar, and tofar, gasoline, coal, gas, and electricity are bacco. the only important commodities to be rationed Revenue from the new taxes will cover comdirectly, although civilian consumption of paratively little of the increased expenditure wool and some other commodities is limited authorized by Parliament last through controlling the use of raw materials Government September. The budget prexpenditure by manufacturers. The limitation on gasosented in April provided for line consumption is particularly severe; it is £620,000,000 of defense expenditure in the estimated that civilian consumption will be fiscal year ending March 1940, an increase of reduced 25 to 50 per cent. more than 50 per cent over the preceding Leading industrial products such as iron, fiscal year. Subsequent authorizations raised steel, and other metals, wood, and textiles ;he defense appropriation to £750,000,000 and have been subjected to varying degrees of established the sum to be borrowed at £500,regulation. In some instances reports only 000,000. With the outbreak of war the Govare required; in others maximum prices have ernment received authority to spend an addibeen set, priority has been given to gov- tional £500,000,000. While all budget estiernment contracts, and sales of finished mates in time of war are subject to great goods and purchases of raw material are uncertainty, it now appears that the Governregulated. ment may spend £1,200,000,000 for military The new British tax schedule presented to purposes and air raid defense during the curParliament toward the end of September sup- rent fiscal year, or approximately three times plements the other measures as much as in 1938-39. Total expenditure New taxation of control. Its significance lies may amount to about £2,000,000,000, of which in the fact that it will somewhat limit the ex- about half is expected to be borrowed. To aspenditures of the civilian population, both by sure the best possible terms for Government absorbing income and by curtailing the con- borrowing, private businesses have been prosumption of particular commodities. It will hibited from issuing securities without Treasthus facilitate the diversion of resources from ury authorization. civil to military uses, which is the major task Not all of the new Government expenditure of a war-time economy. While estimates of will result in additional orders for industry. revenue from the new taxes are, in the nature Some of it will merely replace private sources of the case, uncertain, it is expected that they of demand eliminated by the war. But in will bring in rather more than £100,000,000 many lines the accelerated rate of armament during the remainder of the current fiscal expenditure will call forth additional indusyear and over twice as much in 1940-41. Sub- trial output and may stimulate private instantial reductions are expected, however, vestment. The expansive effect on total outin the revenue from certain other taxes, put and on business conditions generally in particularly those on gasoline and motor the United Kingdom will be retarded to the vehicles. extent that private consumption is curtailed A large part of the added revenue will be and difficulties develop in shifting plant, derived from direct taxation. The standard equipment, and labor to unaccustomed emrate of income tax was raised from 2 7 ^ to ployments. 1046 FEDERAL RESERVE BULLETIN In recent years British business conditions have come increasingly under the influence of government expenditures British business for rearmament. The early developments _ _ ... phases of the recovery movement that began in 1932 were founded to a large extent on an expanding volume of private investment, particularly the construction of dwellings and the modernization of industrial facilities. With expanding national INDUSTRIAL PRODUCTION UNITED KINGDOM AND FRANCE PER CENT 140 PER CENT 140 v V UNITED KINGDOM 120 100 V 60 120 v r J 100 80 120 120 FRANCE KJO INDEX #X BO V NDE.X V - ••• f Ml f V / 100 80 V 60 1934 1938 Official indexes of physical volume of production on a ratio scale. United Kingdom: Board of Trade; quarterly index unadjusted for seasonal variation; 1930 = 100; latest figure, second quarter 1939; figures for 1932-33 represent old Board of Trade index (1924 = 100) converted to a 1930 base. France: Statistique Generate; monthly indexes partially adjusted for seasonal variation; 1928 = 100; latest figure, June 1939 (preliminary); old index on 1913 base has been converted to a 1928 base. DECEMBER 1939 ture for armament. The iron, steel and other metal-working trades, machinery, and shipbuilding were affected particularly. They continued to receive support from government expenditure during the period of declining production and employment that began in the latter part of 1937. Under the influence of still larger military and naval appropriations they led the upturn that commenced toward the end of 1938. The strong upward trend that was under way before the outbreak of war is shown on the chart. The mixed initial effects of the war on the British economy are epitomized in the changes that took place in the volume of unemployment in the two months ending October 16. During this period there was an increase of approximately 200,000 in the number of registered unemployed in the United Kingdom, some of whom were seeking employment for the first time. While on balance the increase occurred entirely among women, there were many shifts in which both men and women were involved. As shown in the table unemployment was confined largely to the service trades, with the largest increases being recorded for workers in the hotel, boarding-house, entertainment, and various retail distribution lines. These were particularly hard hit by the "blackout" system, the evacuation of urban areas, and the disruption of normal transportation schedules. Unemployment in the building trades income, increased consumer buying stimu- PRINCIPAL CHANGES I N UNEMPLOYMENT I N THE UNITED KINGDOM, AUGUST 14-OCTOBER 16,1939 lated the production of automobiles and other [In number of persons] goods for final consumption. Expansion of plant and equipment was accompanied by inDecreases Increases creased activity in the industrial machinery manufacturing trades... — 133, 700 Heavy and iron and steel industries. Employment Service and mining 56,400 26,800 Building 20,400 Textiles, apparel, and Printing, etc increased, not only in industry but also in Motor vehicle, cycle, airother light manufactur43,100 13,300 ing craft; road transport retail distribution, entertainment, and other Dock 10,900 9,500 Public works and harbor House furnishings manuservice occupations. 7,300 facture During the later phases of the recovery 110,400 Total.. 1211,000 Total.. economic activity in England was heightened An additional net increase of 98,000 in unemployment largely by an accelerated rate of government expendi- represented persons seeking work for the first time. 1 DECEMBER 1939 FEDERAL RESERVE BULLETIN 1047 increased substantially, and some manufac- wool manufacturing concerns are relatively turing industries, particularly those catering well occupied. to the final consumer, such as house-furnish- Little information is available concerning ings and motor-cars, also showed a higher economic developments in France in recent months. Before the outlevel of unemployment. The level for manuFrench economic break Of War, however, profacturing as a whole was reduced, however. developments . , Unemployment also declined in public works ductive activity was at a contracting, coal mining, national govern- high level, as shown on the chart on page ment service, and public utilities. Some of 1046. For nearly a year the volume of prothese reductions reflected seasonal influences, duction in France had been rising, a developbut for the most part they were connected ment that was in large measure associated with the speeding up of military prepara- with increased military expenditure. Such tions. The figures reveal clearly the early expenditure in 1938 was half again as large shift of economic activity in the United King- as in 1937, and appropriations for 1939 bedom away from the satisfaction of ordinary fore the outbreak of war, amounting to some peace-time wants and toward fulfillment of 50,000,000,000 francs, were more than twice war-time needs. They indicate no less clearly the 1937 figures. Following the commencethe difficulties connected with this process. ment of hostilities in Europe the French ParPublication of many of the statistics re- liament appropriated an additional 69,000,flecting business conditions in the United 000,000 francs for the armed forces. Kingdom has been discontinued. In many Partly as a result of mobilization, and lines, as indicated by the unemployment partly as a result of increased armament figures, the disruption of normal activity was activity, labor shortages have developed and serious and not quickly overcome. In other it has been found necessary to issue a numlines, however, there was little if any serious ber of regulations governing hours, wages, interruption to work, and reports from in- and employment. In this respect the ecodustrial centers indicate that output has ex- nomic measures taken in France differ subpanded during recent weeks. Production of stantially from those in the United Kingdom, steel was at approximately the rated capacity where the settlement of questions concerning of the industry last May, and remained at rates of pay, hours, and mobility of labor has very nearly this level through July, the latest been left largely to negotiation between month for which figures are available. Re- workers and employers. In other respects ports from leading steel areas are to the the French controls are broadly similar to effect that output has recently reached new those in Great Britain; strict control over high levels. Presumably in recognition of an imports and exports has been instituted, actual or potential shortage of supplies for prices have been fixed, and the production the steel industry the government removed and distribution of commodities is regulated the 33% per cent duty on pig iron in October. in various ways. Similar action was taken in 1937 and reversed Exports from the United States, as shown in 1938. Manufacturers of industrial ma- on the chart, increased sharply during Sepchinery and electrical equipment are reported tember and October, the first to be exceptionally busy. In some cases un- United States j - w o m o n t h s of war in Europe. ^ employment has been eliminated and the labor foreign trade The rise was partly seasonal, unions have agreed to permit additional workers to be brought into the industry in but it carried the figures well over those for order not to hamper production. The chemi- a year previous. No such increase occurred cal industry is also active, and cotton and in the initial war months in 1914. Exports in August of that year declined sharply, and 1048 FEDERAL RESERVE BULLETIN in September they recovered only to the July level. It was not until December, following the reorganization of disrupted shipping schedules and the reopening or establishment of business connections, that exports exceeded those of the previous year. FOREIGN TRADE OF THE UNITED STATES MILLIONS OF DOLLARS MILLIONS OF DOLLARS 350 350 300 300 150 150 100 -50 1937 1938 1939 General imports and exports, including reexports. Raw cotton exports have shown by far the largest current increase. The rise was largely seasonal, but to some extent it reflected the replenishment of low stocks in foreign countries and the operation of the Federal Government's export subsidy program, which went into effect late last summer. Exports of cotton in September and October were $38,000,000 larger than in the same months of 1938, when shipments were unusually low. Shipments of tobacco, on the other hand, were $37,000,000 less than in 1938. Except for preserved fruits, which increased, and fresh fruits, which declined, exports of most other agricultural commodities changed only slightly. Among industrial products, exports of automobiles rose sharply in October, as is customary following the introduction of new models. Exports of iron and steel continued DECEMBER 1939 the steady expansion that began in the summer of 1938, while shipments of chemicals and coal in September and October were substantially higher than in the preceding two months. Other leading exports such as machinery and petroleum products were well maintained at the high levels reached during recent years of war preparation abroad, but shipments of aircraft declined sharply owing to the arms embargo and were $9,000,000 less than at the peak reached in August. There were small increases in exports of a wide list of manufactured commodities. Most of the increase in exports to the United Kingdom that occurred in September was lost in the following month and shipments to France remained at the relatively low September level. Exports to Canada rose sharply in both months, however, reaching a level higher than in any recent year. During September and October together the principal neutral countries to which increased quantities of American goods were shipped were Italy, the Netherlands, Norway, Sweden, and Russia in Europe; Brazil, Colombia, Cuba, Mexico, and Venezuela in Latin America ; and Japan. Industrial activity in the United States, which increased sharply with outbreak of the war in Europe, rose Recent business somewhat further in NoS s t T t e s i n vember and in many lines was close to capacity levels. The Board's seasonally adjusted index of industrial production in November is estimated at about 125 per cent of the 1923-1925 average as compared with 120 in October, 111 in September, and 103 in August. In the steel industry output of ingots and of many finished products was the largest on record and in most steel-consuming industries there were marked increases in activity. Automobile production reached high levels except at plants of one major producer whose production had been curtailed since early October by an industrial dispute. Output of textiles, petroleum products, and electricity continued at high levels FEDERAL RESERVE BULLETIN DECEMBER 1939 reached earlier. On the railroads, shipments declined less than seasonally, following considerable advances in September and October, and were at about the level reached in the spring of 1937. In the construction industry, the effects of the war have not been marked. Contracts for private construction, both residential and non-residential, continued in September and October close to the highest levels of the year. Awards for public projects declined sharply in October. Wholesale commodity prices generally showed little change in November and were close to the advanced levels reached in the early part of September. Prices of some industrial materials, such as steel scrap and wool, continued to decline from previous high levels while cotton advanced. Prices of United States Government securities have increased and yields have declined substantially during the Government pasf- f-WQ m o n t h s , following security m a r k e t ^ . - , / . - . -IT a period of sharp declines in prices and of a rapid rise in yields after the outbreak of the war. On November 25, the yield on the longest-term Treasury bond issue outstanding was 2.45 per cent, com- 1049 pared with the highest point of 2.78 per cent late in September and with an all-time low of 2.26 per cent on June 5. Yields on Treasury notes moved similarly during this period, averaging 0.60 per cent for 3-to-5 year notes on November 25, compared with 0.35 per cent on June 5. In pursuance of the System's policy of endeavoring to maintain orderly conditions in the market, Federal Reserve bank holdings of Treasury bonds and notes and guaranteed obligations, which had been increased by about $475,000,000 during the period of the price decline in September, were reduced by about $45,000,000 during the two weeks ending November 22. System holdings of Treasury bills, as they mature every week, have been replaced on only few occasions since June 21, and the System's portfolio of such bills declined from $477,000,000 on that date to $77,000,000 on November 22. About half of this decline has occurred since September 20. The net result has been that total holdings of Government securities in the System Open Market Account declined from a peak of $2,826,000,000 on September 20 to $2,593,000,000 on November 22. 1050 FEDERAL RESERVE BULLETIN DECEMBER 1939 NATIONAL SUMMARY OF BUSINESS CONDITIONS [Compiled November 16 and released for publication November 18] Rapid expansion of industrial output continued in October, and employment and payrolls increased considerably. Distribution of commodities to consumers, which had increased in September, was maintained at the higher level in October. In the first half of November industrial activity increased further but, with production in many industries approaching capacity, the advance was less rapid than in earlier months. Commodity prices generally showed little change during October and the first half of November, following the sharp rise in September. Production.—Volume of industrial production showed a further sharp rise in October and the Board's seasonally adjusted index advanced from 111 to 120 per cent of the 1923-1925 average. Marked increases in activity were reported in the steel and steel-consuming industries and at mines. In the steel industry ingot production in October was at a rate of 90 per cent of capacity and actual volume of output was the greatest MANUFACTURING PRODUCTION POINTS IN TOTAL INDEX POINTS IN TOTAL INI 140 1934 1935 1936 1937 1938 1939 Index of physical volume of production, adjusted for seasonal variation, 1923-1925 average = 100. Durable and nondurable series expressed in terms of points in the total index. By months, January 1934 to October 1939. for any month on record. Some further increase in the rate of output was reported in the first half of November. Pig iron production also advanced sharply and lake shipments of iron ore, which had increased considerably in September, continued in exceptionally large volume. Activity in the machinery and shipbuilding industries and in most other steel-consuming lines rose in October but by a considerably smaller amount than output of steel. In the automobile industry, however, output showed less than the marked rise usual at this season. This was due to the fact that plants of one large producer were closed during most of the month by an industrial dispute. Mineral production in October was at record levels owing chiefly to a high rate of crude petroleum output. In the nondurable goods industries activity was generally maintained at the high levels reached in August and September. Flour production declined sharply, however, following an exceptionally large volume of output in September. Value of construction contracts, as reported by the F. W. Dodge Corporation, decreased considerably in October, reflecting principally a reduction in awards for public construction. Private residential contracts continued in substantial volume while awards for commercial and industrial building declined somewhat following increases in the previous month. Employment.—Reports from leading industrial States indicate that factory employment and payrolls increased sharply between the middle of September and the middle of October. Increases were particularly large at steel mills and in related industries. There was also a considerable increase in employment on the railroads in October. Distribution.—Retail distribution of general merchandise in October showed about the usual seasonal rise from the advanced September level. In the early part of November department store sales increased considerably. Freight-car loadings rose further from 1051 FEDERAL RESERVE BULLETIN DECEMBER 1939 September to October, reflecting a large increase in shipments of miscellaneous freight, which includes most manufactured products, and smaller increases in loadings of coal, forest products, and ore. Bank credit.—Total loans and investments at reporting member banks in 101 leading cities increased substantially during the six weeks ending November 8, reflecting largely purchases of Treasury bills by New York City WHOLESALE PRICES MEMBER BANKS IN 101 LEADING CITIES PER CENT 110 — no 100 100 90 90 BILLIONS OF DOLLARS " 12 "S 10 U.S. GOVT OBLIGATIONS 8 80 80 70 70 BILLIONS OF DOLLARS ( niRECT AN ) GUARANTEED ) 6 COMMERCIAL LOANS 4 60 60 OTHER SECURITIES j 2 50 1934 1935 1936 1937 1938 Index compiled by the United States Bureau of Labor Statistics, 1926=100. By weeks, 1934 to week ending November 11, 1939. LOANS TO BROKERS^"" AND DEALERS 0 '34 1935 1938 1939 Wednesday figures for reporting member banks in 101 leading cities, September 5, 1934, to November 15, 1939. Commercial loans, which include industrial and agricultural loans, represent prior to May 19, 1937, so-called "Other loans" as then reported. Commodity prices.—Price changes that have occurred since the general sharp rise in September have reflected largely particular banks. Commercial loans continued to show developments in individual commodities. moderate increases. Deposits at these banks From the middle of October to the middle of rose to new high levels. November prices of a number of foodstuffs MONEY RATES IN NEW YORK CITY continued to decline and there were also decreases in some industrial materials, such as print cloths, wool, tin, and steel scrap. Wheat, cotton, and burlap advanced somewhat while prices of most other commodities, including finished industrial products, showed little change. Government security prices.—Following a sharp recovery from the low of September 21, prices of United States Government bonds showed irregular changes during the period 1938 1934 1935 1937 1939 1936 from October 24 through the first half of Minimum rate on rediscounts for and advances to member November. On November 15 yields on long- by Federal Reserve bank; weekly averages of daily yields onbanks 3- to 5-year Treasury notes and Treasury bonds callable after 12 years, term Treasury bonds were at 2.47 per cent as and average discount on new issues of 91-day Treasury bills offered week. For weeks ending January 6, 1934, to November compared with 2.79 per cent on September 21. within 18, 1939. 1052 FEDERAL RESERVE BULLETIN DECEMBER MEMBER BANK RESERVES AND RELATED ITEMS WEDNESDAY FIGURES BILLIONS OF DOLLARS 16 TREASURY DEPOSITS AT F. R. BANKS 1934 1935 1936 1937 Latest figures for November 15. See p. 1096. 1939 1939 1053 FEDERAL RESERVE BULLETIN DECEMBER 1939 SUMMARY OF FINANCIAL AND BUSINESS STATISTICS 1939 Oct. Sept. Aug. 2,832 6 1935 1933 2,610 g 2,590 2,600 9 2,554 14 2,481 2,475 2,429 283 1 1 1 1 3 4 5 83 2,540 2,430 12,162 10, 578 2,567 2,503 6,475 6,101 3,225 2,474 2,431 9,059 2,478 5,585 2,791 2,052 4,059 2,271 5,576 11,862 11,443 10,659 5,490 5,198 4,607 1929 8,546 3,143 8,196 2,920 8,119 2,955 7,935 2,522 158 595 446 551 128 507 6,830 1,220 5,989 2,512 5,001 2,469 288 55 497 2,343 528 1,459 952 241 208 3,996 2,015 4,476 207 22 406 2,358 43 Averages of Wednesday figures; in millions of dollars 22,571 8,421 4,279 552 505 3,085 14,150 8,566 2,232 3,352 9,957 482 3,062 18,511 5,254 7,845 1 22,384 22,327 21, 323 21,078 20, 675 21,023 22,198 22,064 19,997 17, 505 8,322 8,179 8,282 8,268 8,215 8,506 9,546 8,462 8,028 9,156 4,166 3,930 3,904 3,893 3,886 4,059 0) 0) 0) ' 0) 777 990 568 642 669 675 636 701 1,226 1,181 511 521 576 578 577 588 0) 0) 12,652 3,077 3,086 3,133 3,122 3,116 3,158 14,062 14,148 13,041 12,810 12,460 12, 517 8,467 8,537 8,084 7,957 7,702 7,982 8,394 2,226 2,265 1,682 1,668 1,646 1,451 1,164 3,369 3,346 3,275 3,185 3,112 3,084 3,094 9,643 8,951 7,005 6,712 6,602 6,400 5,307 0) 0) 13,602 0) 0) 11,969 0) 0) 8,349 9,080 1,250 3,272 4,799 7,989 5,228 3,052 4,024 383 928 3,121 1,822 22 599 16* 887 0) 0) 0) •2, 208 5,712 2,865 2,847 1,725 248 1,142 1 326 240 2,951 2,808 2,446 2,413 2,416 2,289 1,884 2,358 2,112 18, 209 17, 717 15, 688 15,377 15,118 15,033 15,097 14, 619 12, 729 5,243 5,259 5,164 5,213 5,206 5,202 5,202 4,999 4,883 7,573 7,118 6,122 5,974 5,920 5,770 5,298 5,810 4,938 1,322 0) 4,946 6 115 6,788 2,787 674 .76 .56 .17 2.79 3.60 1.72 1.16 5.85 7.61 3.31 4.49 3.60 4.73 392 121 270 189 34 . 155 89 60 29 32 18 959 841 118 781 667 115 477 440 1 7 .69 1.00 .05 2.60 3.15 .69 1.00 .14 2.65 3.25 .56 1.00 .05 2.21 2.93 740 336 404 176 18 157 174 41 133 90 16 74 '450 »103 "'•347 '327 425 416 1 387 1 382 3 337 12 5 2,822 C) Averages of daily figures; per cent per annum 1.00 .05 2.48 3.15 1.00 2.58 3.21 .75 1.00 .06 2.51 3.18 .81 1.00 .07 2.56 3.19 1.00 .28 2.68 3.26 .75 .91 .17 2.65 3.24 Amounts per month;in millions of dollars ••301 766 167 599 338 64 274 238 146 92 150 85 65 92 86 91 86 90 79 69 75 82 79 75 61 67 80 75 78 67 74 81 78 78 68 75 81 79 78 67 73 81 78 '26 417 182 236 338 127 211 328 178 150 203 102 101 518 164 354 382 99 282 83 112 111 78 63 190 79 69 74 82 79 86 86 86 85 85 81 81 82 80 82 80 79 84 78 81 66 51 61 71 66 95 105 100 92 105 90 90 91 37 21 50 91 74 64 79 76 75 82 25 11 37 73 50 58 67 119 119 115 117 87 142 106 110 107 111 190 171 140 121 437 367 '371 197 '174 178 73 '105 13 Index numbers Index numbers, adjusted for seasonal variation, 1923-25=100 BUSINESS INDEXES P120 P122 P77 P67 P84 PIOI P101 80 90 111 111 114 73 68 76 97 94 77 91 103 104 91 73 67 78 96 90 70 89 289 181 251 176 96 95 98 82 57 102 90 84 68 84 90 89 97 78 56 96 89 82 64 86 88 87 95 66 53 77 88 77 62 83 86 84 98 64 45 80 90 78 62 85 110 109 116 59 41 74 109 103 78 92 105 105 105 55 37 70 99 86 75 88 Amounts per month; in millions of dollars MERCHANDISE EXPORTS AND IMPORTS * Less than $500,000. p Preliminary. ' Revised. • Partly estimated. 12 Figures not available. Includes time deposits of banks, domestic and foreign, 1929-1933. » Does not include time deposits, 1929-1933. 1936 2,598 g PRICES Exports, including re-exports. General imports 1937 1 763 2,732 2,437 2,564 2,572 2,564 2,565 17,002 16,823 16,390 13,940 13,441 13,057 13, 250 2,926 2,911 2,900 2,745 2,733 2,724 2,711 17, 328 7,249 7,098 6,668 6,570 6,482 6,510 2,239 2,253 2,344 2,782 2,717 2,392 2,804 358 611 783 665 704 774 653 972 972 872 622 598 606 658 Common stocks (1926=100) Wholesale commodity prices (1926=100): All commodities Farm products Foods Other commodities Retail food prices (1923-25=100) Industrial production Manufactures Minerals Construction contracts awarded—total.. Residential Allother. Factory employment.._ __ Factory payrolls (unadjusted) _ Freight-car loadings. Department store sales. 1938 2,467 CAPITAL ISSUES All issues—total New __. Refunding Domestic corporate issues—total.. New Refunding Aug. 1 MONEY RATES AND BOND YIELDS Commercial paper Stock exchange call loans U. S. Treasury bills (91 days) U. S. Treasury bonds, long-term Corporate high grade bonds (Moody's Aaa). Sept. 2,794 g REPORTING MEMBER BANKS IN 101 LEADING CITIES Total loans and investments Loans—total Commercial, industrial and agricultural To brokers and dealers in securities Other loans for purchasing or carrying securities.. All other loans Investments—total U. S. Government direct obligations Obligations fully guaranteed by U. S. Govt Other securities Reserve with Federal Reserve banks Cash in vault _. Balances with domestic banks Demand deposits—adjusted Time deposits (excluding interbank) 2 Deposits of domestic banks 3 Borrowings . Oct. Averages of daily figures; in millions of dollars MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS Reserve bank credit outstanding—total ... Bills discounted Bills bought U. S. Government securities Gold stock __ Treasury currency outstanding Money in circulation Treasury cash holdings Treasury deposits with F. R. banks Nonmember deposits and other F. R. accounts Member bank reserve balances: Total • Excess _ Annual averages 1938 278 178 246 168 231 166 258 163 279 257 205 202 1054 FEDERAL RESERVE BULLETIN DECEMBER 1939 LAW DEPARTMENT Financial Transactions under Neutrality Act of 1939 The President of the United States on November 4, 1939, issued a proclamation under authority of section l(a) of the Neutrality Act of 1939 (Pub. Res. No. 54, 76th Cong.), approved November 4,1939, proclaiming that a state of war exists between Germany and France; Poland; and the United Kingdom, India, Australia, Canada, New Zealand and the Union of South Africa. In this connection, section 7 of the Neutrality Act, relating to financial transactions, provides as follows: FINANCIAL TRANSACTIONS "SEC. 7 (a) Whenever the President shall have issued a proclamation under the authority of section 1 (a), it shall thereafter be unlawful for any person within the United States to purchase, sell, or exchange bonds, securities, or other obligations of the government of any state named in such proclamation, or of any political subdivision of any such state, or of any person acting for or on behalf of the government of any such state, or political subdivision thereof, issued after the date of such proclamation, or to make any loan or extend any credit (other than necessary credits accruing in connection with the transmission of telegraph, cable, wireless and telephone services) to any such government, political subdivision, or person. The provisions of this subsection shall also apply to the sale by any person within the United States to any person in a state named in any such proclamation of any articles or materials listed in a proclamation referred to in or issued under the authority of section 12 (i). (b) The provisions of this section shall not apply to a renewal or adjustment of such indebtedness as may exist on the date of such proclamation. (c) Whoever shall knowingly violate any of the provisions of this section or of any regulations issued thereunder shall, upon conviction thereof, be fined not more than $50,000 or imprisoned for not more than five years, or both. Should the violation be by a corporation, organization, or association, each officer or director thereof participating in the violation shall be liable to the penalty herein prescribed. (d) Whenever any proclamation issued under the authority of section 1 (a) shall have been revoked with respect to any state the provisions of this section shall thereupon cease to apply with respect to such state, except as to offenses committed prior to such revocation. Amendments to Regulation F section 11. Inquiries received from time to time have indicated that in some instances the best interests of trusts might be better served if the requirements were somewhat more flexible. Accordingly, transactions have been excepted from such requirements where specifically authorized by court order. This exception has been incorporated in the regulation by substituting for the last sentence of footnote 12 the following footnote applicable to the entire section 11: The requirements of this section shall not be deemed to prohibit the making of any investments or the carrying out of any transactions which are expressly required by the instrument creating the trust or are specifically authorized by court order. For the purpose of clarification, the first sentence of footnote 12 has been revised and incorporated as a footnote appended to the word "interests" in subsections (a) and (b) of section 11, to read as follows: Under recognized principles of sound practice regarding the handling of trust assets, a trustee or other fiduciary should not have any interest, direct or indirect, in the assets of a trust except as a fiduciary; and the requirements of this section contemplate that the national bank will not invest trust funds in the stock or obligations of, or property acquired from, any organization in which officers, directors, or employees of the bank have such an interest as might affect the exercise of the best judgment of the management of the bank in investing trust funds and that the national bank will not sell or transfer trust assets to any organization in which the officers, directors, or employees of the bank have such an interest as might affect the exercise of the best judgment of the management of the bank in selling or transferring trust assets. In order to conform with amendments to Internal Revenue laws, the words "Revenue Act of 1936" where they appear in section 17(a), the footnote thereto, and in the statutes in the Appendix, have been changed to read "Internal Revenue Code"; and the appropriate sections of the Internal Revenue Code have been substituted in the Appendix for the sections of the Revenue Act of 1936. Regulation F, relating to trust powers of Amendments to Regulation H national banks, was amended effective November 20, 1939. The only substantive Regulation H, relating to membership of amendment relates to the requirements of State banking institutions in the Federal Re- serve System, was amended in minor respects effective November 20,1939, and reprinted to incorporate such amendments and one previously adopted. The amendment of Regulation H was prompted primarily by the repeal of the requirement in subsection (y) of section 12B of the Federal Reserve Act that State banks having deposits of $1,000,000 or more become members of the Federal Reserve System. The text of the regulation is set forth below: REGULATION H As amended, effective November 20, 1939 MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL RESERVE SYSTEM CONTENTS AUTHORITY FOR REGULATION SEC. 1. DEFINITIONS (a) (b) (c) (d) (e) (f) State bank Mutual savings bank Board Board of directors Federal Reserve bank stock Capital and capital stock SEC. SEC. SEC. 2. ELIGIBILITY REQUIREMENTS 3. INSURANCE OF DEPOSITS 4. APPLICATION FOR MEMBERSHIP SEC. 5. APPROVAL OF APPLICATION (a) State bank, other than a mutual savings bank (b) Mutual savings bank (c) Mutual savings bank not authorized to purchase stock of Federal Reserve bank at time of admission (d) Execution and filing of application (a) Matters given special consideration by Board (b) Procedure for admission to membership after approval of application SEC. 1055 FEDERAL RESERVE BULLETIN DECEMBER 1939 6. CONDITIONS OF MEMBERSHIP SECTION 1. DEFINITIONS For the purposes of this regulation— (a) The term "State bank" means any bank or trust company incorporated under a special or general law of a State or under a general law for the District of Columbia, any mutual savings bank (unless otherwise indicated), and any Morris Plan bank or other incorporated banking institution engaged in similar business.1 (b) The term "mutual savings bank" means a bank without capital stock transacting a savings bank business, the net earnings of which inure wholly to the benefit of its depositors after payment of obligations for any advances by its organizers, and in addition thereto includes any other banking institution the capital of which consists of weekly or other time deposits which are segregated from all other deposits and are regarded as capital stock for the purposes of taxation and the declaration of dividends. (c) The term "Board" means the Board of Governors of the Federal Reserve System. (d) The term "board of directors" means the governing board of any institution performing the usual functions of a board of directors. (e) The term "Federal Reserve bank stock" includes the deposit which may be made with a Federal Reserve bank in lieu of a subscription for stock by a mutual savings bank which is not permitted to purchase stock in a Federal Reserve bank, unless otherwise indicated. (/) The terms "capital" and "capital stock" mean common stock, preferred stock, and legally issued capital notes and debentures purchased by the Reconstruction Finance Corporation which may be considered capital and capital stock for purposes of membership in the Federal Reserve System under the provisions of section 9 of the Federal Reserve Act. SECTION 2. ELIGIBILITY REQUIREMENTS Under the terms of section 9 of the Federal Reserve Act, as amended, to be eligible for admission to membership in the Federal Reserve System— (1) A State bank, other than a mutual savings bank, must possess a paid-up, unimpaired2 capi- (a) Conditions applicable to all institutions applying for membership (b) Conditions applicable to institutions exercising 1 Under the provisions of section 19 of the Federal Reserve Act, trust powers national banks, or banks organized under local laws, located in SEC. 7. POWERS AND RESTRICTIONS Alaska or in a dependency or insular possession or any part of the United States outside the continental United States are not reSEC. 8. ESTABLISHMENT OR MAINTENANCE OF BRANCHES quired to become members of the Federal Reserve System but may, (a) In general with the consent of the Board, become members of the System. (b) Branches in the United States (c) Application for approval of branches in United However, this Regulation H is applicable only to the admission of States banks eligible for admission to membership under section 9 of the (d) Foreign branches Federal Reserve Act and does not cover the admission of banks eligible under section 19 of the Act. Any bank desiring to be (e) Application for approval of foreign branches admitted to the System under the provisions of section 19 should SEC. 9. PUBLICATION OF REPORTS OF MEMBER BANKS AND THEIR communicate with the Federal Reserve bank with which it desires AFFILIATES to 2do business. (a) Reports of member banks Section 345 of the Banking Act of 1935 provides in part that: (b) Reports of affiliates "If any part of the capital of a national bank, State member bank, SEC. 10. VOLUNTARY WITHDRAWAL FROM FEDERAL RESERVE SYSTEM or bank applying for membership in the Federal Reserve System (a) General consists of preferred stock, the determination of whether or not (b) Notice of intention of withdrawal the capital of such bank is impaired and the amount of such im(c) Time and method of effecting actual withdrawal pairment shall be based upon the par value of its stock even (d) Withdrawal of notice though the amount which the holders of such preferred stock shall be entitled to receive in the event of retirement or liquidation SEC. 11. BOARD FORMS shall be in excess of the par value of such preferred stock. If any APPENDIX such bank or trust company shall have outstanding any capital AUTHORITY FOR REGULATION notes or debentures of the type which the Reconstruction Finance Corporation is authorized to purchase pursuant to the provisions This regulation is based upon and issued pur- of section 304 of the Emergency Banking and Bank Conservation suant to provisions of section 9 of the Federal Act, approved March 9, 1933, as amended, the capital of such bank may be deemed to be unimpaired if the sound value of its assets is Reserve Act and related provisions of law. (Section less than its total liabilities, including capital stock, but ex9 of the Federal Reserve Act is printed in the not cluding such capital notes or debentures and any obligations of Appendix.) the bank expressly subordinated thereto." 1056 FEDERAL RESERVE BULLETIN tal sufficient to entitle it to become a national banking association in the place where it is situated under the provisions of the National Bank Act, except in the following circumstances, in which case such a bank may be admitted to membership with a lesser capital as indicated: (A) Any such institution organized prior to June 16, 1933 (the date of the approval of the Banking Act of 1933) situated in a place the population of which does not exceed 3,000 inhabitants and at the time of admission having a capital of not less than $25,000; (B) Any such institution (whether or not organized prior to June 16, 1933) situated in a place the population of which does not exceed 3,000 inhabitants and which at the time of admission is entitled to the benefits of insurance under section 12B of the Federal Reserve Act and has a capital of not less than $25,000. (2) A mutual savings bank must possess surplus and undivided profits not less than the amount of capital required for the organization of a national bank in the place where it is situated. (3) The minimum capital required for the organization of a national bank, referred to hereinbefore in connection with the capital required for admission to membership in the Federal Reserve System, is as follows: If located in a city or town with a population- Minimum Capital Not exceeding 6,000 inhabitants Exceeding 6,000 but not exceeding 50,000 inhabitants Exceeding 50,000 inhabitants (except as stated below) In an outlying district of a city with a population exceeding 50,000 inhabitants; provided State law permits organization of State banks in such location with a capital of $100,000 or less _..._ DECEMBER 1939 SECTION 4. APPLICATION FOR MEMBERSHIP (a) State bank, other than a mutual savings bank. —A State bank, other than a mutual savings bank, applying for membership, shall make application on Form 83A to the Board for an amount of capital stock in the Federal Reserve bank of its district equal to six per cent of the paid-up capital stock and surplus of the applying institution. (b) Mutual savings bank.—A mutual savings bank applying for membership shall make application on Form 83B to the Board for an amount of capital stock in the Federal Reserve bank of its district equal to six-tenths of one per cent of its total .deposit liabilities as shown ]by the most recent report of examination of such institution preceding its admission to membership, or, if such institution be not permitted by the laws under which it was organized to purchase stock in a Federal Reserve bank, on Form 83 C, for permission to deposit with the Federal Reserve bank an amount equal to the amount which it would have been required to pay in on account of a subscription to capital stock. (c) Mutual sayings bank not authorized to purchase stock of Federal Reserve bank at time of admission.—If a mutual savings bank be admitted to membership on the basis of a deposit of the required amount with the Federal Reserve bank in lieu of payment upon capital stock because the laws under which such bank was organized do not at that time authorize it to purchase stock in the Federal Reserve bank, it shall subscribe on Form 83D for the appropriate amount of stock in the Federal Reserve bank whenever such laws are amended so as to authorize it to purchase stock in a Federal Reserve bank.4 (d) Execution and filing of application.—Each application made under the provisions of this section and the exhibits referred to in the application blank shall be executed and filed, in duplicate, with the Federal Reserve bank of the district in which the applying bank is located. SECTION 5. APPROVAL OF APPLICATION SECTION 3 . INSURANCE OF DEPOSITS (a) Matters given special consideration by Board. passing upon an application, the following matAny State bank becoming a member of the Federal —In Reserve System after the date of the enactment of ters will be given special consideration: the Banking Act of 1935 (August 23, 1935) and (1) The financial history and condition of the which is not at the time an insured bank under the applying bank and the general character of its provisions of section 12B of the Federal Reserve Act, management; will become an insured bank under the provisions of (2) The adequacy of its capital structure and that section on the date upon which it becomes a its future earnings prospects; 3 member of the Federal Reserve System. In the (3) The convenience and needs of the comcase of an insured bank which is admitted to memmunity to be served by the bank; and bership in the Federal Reserve System, the bank (4) Whether its corporate powers are conwill continue to be an insured bank. sistent with the purposes of the Federal Reserve 3 Act. In the case of a State bank which at the time of its admission to membership in the Federal Reserve System is not an insured bank, the Board is required under the provisions of subsections (e) and (g) of section 12B of the Federal Reserve Act to issue a certificate to the Federal Deposit Insurance Corporation to the effect that the bank is a member of the Federal Reserve System and that consideration has been given to the financial history and condition of the bank, the adequacy of its capital structure, its future earnings prospects, the general character of its management, the convenience and needs of the community to be served by the bank, and whether or not its corporate powers are consistent with the purposes of section 12B of the Federal Reserve Act. 4 The Federal Reserve Act provides that, if the laws under which any such savings bank was organized be not amended at the first session of the legislature following the admission of the savings bank to membership so as to authorize mutual savings banks to purchase Federal Reserve bank stock, or if such laws be so amended and the bank fail within six months thereafter to purchase such stock, all of its rights and privileges as a member bank shall be forfeited and its membership in the Federal Reserve System shall be terminated in the manner prescribed in section 9 of the Federal Reserve Act. DECEMBER FEDERAL RESERVE BULLETIN 1939 (6) Procedure for admission to membership after approval of application.—If an applying bank conforms to all the requirements of the Federal Reserve Act and this regulation and is otherwise qualified for membership, its application will be approved subject to such conditions as may be prescribed pursuant to the provisions of the Federal Reserve Act. When the conditions prescribed have been accepted by the applying bank, it should pay to the Federal Reserve bank of its district one-half of the amount of its subscription and, upon receipt of advice from the Federal Reserve bank as to the required amount, one-half of one per cent of its paid-up subscription for each month from the period of the last dividend.5 The remaining half of the bank's subscription shall be subject to call when deemed necessary by the Board. The bank's membership in the Federal Reserve System shall become effective on the date as of which a certificate of stock of the Federal Reserve bank is issued to it pursuant to its application for membership or, in the case of a mutual savings bank which is not authorized to subscribe for stock, on the date as of which a certificate representing the acceptance of a deposit with the Federal Reserve bank in place of a payment on account of a subscription to stock is issued to it pursuant to its application for membership. SECTION 6. CONDITIONS OF MEMBERSHIP (a) Conditions applicable to all institutions applying for membership.—Pursuant to the authority contained in the first paragraph of section 9 of the Federal Reserve Act, which authorizes the Board to permit applying State banks to become members of the Federal Reserve System "subject to the provisions of this Act and to such conditions as it may prescribe pursuant thereto," the Board, except as hereinafter stated, will prescribe the following conditions of membership for each State bank hereafter applying for admission to the Federal Reserve System, and, in addition, such other conditions as may be considered necessary or advisable in the particular case— 1. Such bank at all times shall conduct its business and exercise its powers with due regard to the safety of.its depositors, and, except with the permission of the Board of Governors of the Federal Reserve System, such bank shall not cause or permit any change to be made in the general character of its business or in the scope of the corporate powers exercised6 by it at the time of admission to membership. 2. The net capital and surplus funds of such bank shall be adequate in relation to the character and condition of its assets and to its de5 In the case of a mutual savings bank which is not permitted by the laws under which it was organized to purchase stock in a Federal Reserve bank, it shall deposit with the Federal Reserve bank an amount equal to the amount which it would have been required to pay in on account of a subscription to capital stock. 6 If, after admission of any bank to membership, it should desire to make any change in the general character of its business or in the scope of its corporate powers exercised at the time of admission, it will be necessary for it to obtain the permission of the Board before making any such change. The acquisition by a bank of the assets of another institution through merger, consolidation, or purchase may result in a change in the character of its assets or the scope of its functions within the meaning of condition numbered 1, and if at any time a member State bank subject to such condition anticipates making any such acquisition a detailed report setting forth all the facts in connection with the transaction should be made promptly to the Federal Reserve bank of the district in which such bank is located. 1057 posit7 liabilities and 8other corporate responsibilities, and its capital shall not be reduced except with the permission of the Board of Governors of the Federal Reserve System.9 3. Such bank shall not engage as a business in issuing or selling either directly or indirectly (through affiliated corporations or otherwise) notes, bonds, mortgages, certificates, or other evidences of indebtedness representing real estate loans or participations therein, either with or without a guarantee, indorsement, or other obligation of such bank or an affiliated corporation.10 (b) Conditions applicable to institutions exercising trust powers.—The Board will also prescribe for each trust company or State bank exercising trust powers at the time of its admission to membership the following conditions of membership which are appropriate for institutions exercising trust powers: 4. Such bank shall not invest funds held by it as fiduciary in stock or obligations of, or property acquired from, the bank or its directors, officers, or employees, or their interests, or in stock or obligations of, or property acquired from, affiliates of the bank.11 5. Such bank, except as permitted in the case of national banks exercising fiduciary powers, shall not invest collectively funds held by the bank as fiduciary and shall keep the securities and investments of each trust separate from those of all other trusts12 and separate also from the properties of the bank itself.13 6. If funds held by such bank as fiduciary are deposited in its commercial or savings department or otherwise used in the conduct of its 7 If at any time, in the light of all the circumstances, the aggregate amount of the bank's net capital and surplus funds appears to be inadequate, the bank, within such period as shall be deemed by the Board to be reasonable for this purpose, shall increase the amount thereof to an amount which in the judgment of the Board shall be adequate in relation to the bank's aggregate deposit liabilities and other corporate responsibilities. 8 This applies to capital stock of all classes and to capital notes and debentures legally issued and purchased by the Reconstruction Finance Corporation which, under the Federal Reserve Act, are considered as capital for purposes of membership. A reduction in capital, however, shall not be deemed to be contrary to this provision if, at the same time, the capital is correspondingly increased or a specific reserve in an amount not less than the amount of the capital reduction is set aside to provide for an increase in capital and can be used for no other purpose; provided, of course, the transaction does not violate any provision of 9 applicable laws. This condition will not be prescribed in connection with the admission of mutual savings banks to membership in the Federal Reserve System. 10 This condition does not apply to the sale of mortgages covered by11insurance under the provisions of the National Housing Act. Under recognized principles of sound practice regarding the handling of trust assets, a trustee or other fiduciary should not have any interest, direct or indirect, in the assets of a trust except as a fiduciary; and the condition contemplates that a trust institution will not invest trust funds in the stock or obligations of, or property acquired from, any organization in which officers, directors, or employees of the trust institution have such an interest as might affect the exercise of the best judgment of the management of the trust institution in investing trust funds. The requirements of this condition shall not be deemed to prohibit the making of any investments or the carrying out of any transactions which are expressly required by the instrument creating the trust or are specifically authorized by court order. 12 This does not prevent a bank from investing the funds of several trusts in a single real estate loan of the kind which could be made by a national bank under the provisions of section 24 of the Federal Reserve Act, as amended, if the bank owns no participation in the loan and has no interest therein except as trustee or 13other fiduciary. Requirements relating to collective investment of trust funds by national banks are contained in the Board's Regulation F. 1058 FEDERAL RESERVE BULLETIN business, it shall deposit with its trust department security in the same manner and to the same extent as is required14 of national banks exercising fiduciary powers. SECTION 7. POWERS AND RESTRICTIONS Every State bank while a member of the Federal Reserve System— (a) Shall retain its full charter and statutory rights subject to the provisions of the Federal Reserve Act and other Acts of Congress applicable to member State banks, to the regulations of the Board made pursuant to law, and to the conditions prescribed by the Board and agreed to by such bank prior to its admission; (b) Shall enjoy all the privileges and observe all the requirements of the Federal Reserve Act and other Acts of Congress applicable to member State banks and of the regulations of the Board made pursuant to law which are applicable to member State banks; and (c) Shall comply at all times with any and all conditions of membership prescribed by the Board in connection with the admission of such bank to membership in the Federal Reserve System. SECTION 8. ESTABLISHMENT OR MAINTENANCE OF BRANCHES (a) In general.—Every State bank which is or hereafter becomes a member of the Federal Reserve System is subject to the provisions of section 9 of the Federal Reserve Act relating to the establishment and maintenance of branches in the United States or in a dependency or insular possession thereof or in a foreign country. Under the provisions of section 9, member State banks establishing and operating branches in the United States beyond the corporate limits of the city, town, or village in which the parent bank is situated must conform to the same terms, conditions, limitations, and restrictions as are applicable to the establishment of branches by national banks under the provisions of section 5155 of the Revised Statutes of the United States relating to the establishment of branches in the United States, except that the approval of any such branches must be obtained from the Board rather than from the Comptroller of the Currency. Under the provisions of section 9, member State banks establishing and operating branches in a dependency or insular possession of the United States or in a foreign country must conform to the terms, conditions, limitations, and restrictions contained in section 25 of the Federal Reserve Act relating to the establishment by national banks of branches in such places. The principal applicable provisions of law have been interpreted as follows: (b) Branches in the United States.— 1. Branches established within the corporate limits of the city, town, or village in which the 14 Such requirements applicable to national banks are contained in section 11 (k) of the Federal Reserve Act and the Board's Regulation F issued pursuant to section 11 (k). In cases where trust funds are fully protected by a statutory preference in all of the assets of the bank over its general creditors, the Board may waive compliance with this condition. However, if compliance be waived in any case, the Board expressly reserves the right to require compliance with the condition if, at any time, it feels that such trust funds are not adequately protected. DECEMBER 1939 parent bank is situated do not require the approval of the Board. 2. Before a member State bank establishes a branch beyond the corporate limits of the city, town, or village in which it is situated, it must obtain the approval of the Board. 3. Before any nonmember State bank having a branch or branches established after February 25, 1927, beyond the corporate limits of the city, town, or village in which the bank is situated is admitted to membership in the Federal Reserve System, it must obtain the approval of the Board for the retention of such branches; and any provisions contained in this section of this regulation which by their terms relate to the establishment on retention of branches by member State banks are equally applicable to the retention by a nonmember State bank applying for membership and having any branches previously established. 4. A member State bank located in a State which by statute law permits the maintenance of branches within county or greater limits may, with the approval of the Board, establish and operate, without regard to the capital requirements of section 5155 of the Revised Statutes, a seasonal agency in any resort community within the limits of the county in which the main office of such bank is located for the purpose of receiving and paying out deposits, issuing and cashing checks and drafts, and doing business incident thereto, if no bank is located and doing business in the place where the proposed agency is to be located; and any permit issued for the establishment of such an agency shall be revoked upon the opening of a State or national bank in the community where the agency is located. 5. Except as stated in the immediately preceding paragraph, a member State bank which establishes a branch beyond the corporate limits of the city, town, or village in which it is situated must have a paid-in and unimpaired capital stock of not less than $500,000, except that, in a State with a population of less than 1,000,000, and which has no city located therein with a population exceeding 100,000, the capital stock shall be not less than $250,000, and except that, in a State with a population of less than 500,000, and which has no city located therein with a population exceeding 50,000, the capital stock shall be not less than $100,000. In any such case, the aggregate capital stock of the member State bank and its branches shall at no time be less than the aggregate minimum capital stock required by law for the establishment of an equal number of national banking associations situated in the various places where such member State bank and its branches are situated. 6. A member State bank may not establish a branch beyond the corporate limits of the city, town, or village in which it is situated unless such establishment and operation are at the time authorized to State banks by the statute law of the State in question by language specifically granting such authority affirmatively and not merely by implication or recognition, and DECEMBER 1939 FEDERAL RESERVE BULLETIN 1059 subject to the restrictions as to location imposed SECTION 9 . PUBLICATION OF REPORTS OF1 5MEMBER BANKS AND THEIR AFFILIATES by the law of the State on State banks. 7. Any member State bank which, on Febru(a) Reports of member banks.—Each report of ary 25, 1927, had established and was actually condition made by a member State bank, which is operating a branch or branches in conformity required to be made to the Federal Reserve bank with the State law is permitted to retain and of its district as of call dates fixed by the Board of operate the same while remaining a member Governors of the Federal Reserve System, shall be of the Federal Reserve System, regardless of the published by such member bank within twenty days location of such branch or branches. from the date the call therefor is issued. The report shall be printed in a newspaper pub8. In order to remain a member of the Federal Reserve System, every member State bank must lished in the place where the bank is located or, if relinquish any branch or branches established there be no newspaper published in the place where after February 25, 1927, beyond the corporate the bank is located, then in a newspaper published limits of the city, town, or village in which the in the same or in an adjourning county and in general parent bank is situated, unless such branch or circulation in the place where the bank is located. branches are in conformity with or are brought The term "newspaper", for the purpose of this reguinto conformity with the same terms, conditions, lation, means a publication with a general circulation limitations, and restrictions as would be appli- published not less frequently than once a week, one cable in the case of the establishment of such of the primary functions of which is the dissemination of news of general interest. branches. The copy of the report for the use of the printer 9. The removal of a branch from one town to for publication should be prepared on Form 105e. another town constitutes the establishment of a The published information shall agree in every rebranch in such other town within the meaning of spect with that shown on the face of the condition the provisions of the Federal Reserve Act. report rendered to the Federal Reserve bank, except that any item for which no amount is reported may (c) Application for approval of branches in United be omitted in the published statement. All signatures States.—Any member State bank desiring to establish shall be the same in the published statement as in a branch beyond the corporate limits of the city, the original submitted to the Federal Reserve town, or village in which it is located and any non- bank, but thereport signatures may be typewritten or othermember State bank applying for membership and wise copied on the report for publication. desiring to retain any branch established after Febof the printed report shall be submitted ruary 25, 1927, beyond the corporate limits of the to Athecopy Reserve bank attached to the certificity, town, or village in which the bank is situated cate onFederal Form 105e. should submit a request for the approval by the (b) Reports of affiliates.16—Each report of an afBoard of any such branch to the Federal Reserve bank of the district in which the bank is located. filiate of a member State bank, including a holding Any such request should be accompanied by advice company affiliate, shall be published at the same as to the scope of the functions and the character time and in the same newspaper as the affiliated of the business which are or will be performed by bank's own condition report submitted to the Fedthe branch and detailed information regarding the eral Reserve bank, unless an extension of time for policy followed proposed to be followed with refer- submission of the report of the affiliate has been ence to supervision of the branch by the head office; granted under authority of the Board of Governors and the bank may be required in any case to furnish of the Federal Reserve System. When such extenadditional information which will be helpful to the sion of time has been granted, the report of the Board in determining whether to approve such re- affiliate must be submitted and published before the expiration of such extended period in the same newsquest. (d) Foreign branches.—Before a member State 15 Under the provisions of section 9 of the Federal Reserve Act, bank establishes a branch in a foreign country, or reports of condition of member State banks which, under that dependency or insular possession of the United States, section, must be made to the respective Federal Reserve banks on dates fixed by the Board of Governors of the Federal Reserve it must have a capital and surplus of $1,000,000 or call System "shall be published by the reporting banks in such manner more and obtain the approval of the Board. and in accordance with such regulations as the said Board may (e) Application for approval of foreign branches. prescribe". Section 9 also provides that the reports of affiliates of a member —Any member State bank desiring to establish such State bank which are required by that section to be furnished to the respective Federal Reserve banks "shall be published by the a branch and any nonmember State bank applying bank the same conditions as govern its own condition refor membership and desiring to retain any such ports".under The term "affiliates", as used in this provision of section branch established after February 25, 1927, should 9, under the express terms of that section, includes "holding comaffiliates as well as other affiliates", but a member State bank submit a request for the approval by the Board of pany is not required to furnish to a Federal Reserve bank the report of any such branch to the Federal Reserve bank of an affiliated member bank. the district in which the bank is located. Any such 16 Section 21 of the Federal Reserve Act, among other things, as follows: "Whenever member banks are required to request should be accompanied by advice as to the provides reports from affiliates, or whenever affiliates of member scope of the functions and the character of the busi- obtain banks are required to submit to examination, the Board of Governess which are or will be performed by the branch nors of the Federal Reserve System or the Comptroller of the Curthe case may be, may waive such requirements with reand detailed information regarding the policy fol- rency,toasany such report or examination of any affiliate if in the lowed or proposed to be followed with reference to spect judgment of the said Board or Comptroller, respectively, such supervision of the branch by the head office; and report or examination is not necessary to disclose fully the relabetween such affiliate and such bank and the effect thereof the bank may be required in any case to furnish ad- tions the affairs of such bank." Therefore, of course, in any case ditional information which will be helpful to the upon where the Board of Governors waives the filing of a report of an Board in determining whether to approve such re- affiliate of a member State bank, no publication of a report of such affiliate is required. quest. 1060 FEDERAL RESERVE BULLETIN paper as the condition report of the bank was published. The copy of the report for the use of the printer for publication should be prepared on Form 220a. The published information shall agree in every respect with that shown on the face of the report of the affiliate furnished to the Federal Reserve bank by the affiliated member bank, except that any item appearing under the caption "Financial relations with bank" against which the word "none" appears on the report furnished to the Federal Reserve bank may be omitted in the published statement of the affiliate, provided that if the word "none" is shown against all of the items appearing under such caption in the report furnished to the Federal Reserve bank the caption "Financial relations with bank" shall appear in the published statement followed by the word "none." All signatures shall be the same in the published statement as in the original report submitted to the Federal Reserve bank, but the signatures may be typewritten or otherwise copied on the report for publication. A copy of the printed report shall be submitted to the Federal Reserve bank attached to the certificate on Form 220a. SECTION 1 0 . VOLUNTARY WITHDRAWAL FROM FEDERAL RESERVE SYSTEM DECEMBER 1939 bank authorizing the withdrawal of such tank from membership in the Federal Reserve System and authorizing a certain officer or certain officers of such bank to file such notice or application, to surrender for cancellation the Federal Reserve bank stock held by such bank, to receive and receipt for any moneys or other property due to such bank from the Federal Reserve bank and to do such other things as may be necessary to effect the withdrawal of such bank from membership in the Federal Reserve System. Notice of intention to withdraw or application for waiver of six months' notice of intention to withdraw by any bank which is in the hands of a conservator or other State official acting in a capacity similar to that of a conservator should be accompanied by advice from the conservator or other such State official that he joins in such notice or application. (c) Time and method of effecting actual withdrawal.—Upon the expiration of six months after notice of intention to withdraw or upon the waiving of such six months' notice by the Board, such bank may surrender its stock and its certificate of membership to the Federal Reserve bank and request that same be canceled and that all amounts due to it from the Federal Reserve bank be refunded.18 Unless this is done within two months after the expiration of such six months' notice or after the waiver of such notice by the Board, or unless the bank requests and the Board grants an extension of time, such bank will be presumed to have abandoned its intention of withdrawing from membership and will not be permitted to withdraw without again giving six months' written notice or obtaining the waiver of such notice. (d) Withdrawal of notice.—Any bank which has given notice of its intention to withdraw from membership in a Federal Reserve bank may withdraw such notice at any time before its stock has been canceled and upon doing so may remain a member of the Federal Reserve System. The notice rescinding the former notice should be accompanied by a certified copy of an appropriate resolution duly adopted by the board of directors of the bank. (a) General.—Any State bank desiring to withdraw from membership in a Federal Reserve bank may do so after six months' written notice has been filed with the Board;17 and the Board, in its discretion, may waive such six months' notice in any individual case and may permit such bank to withdraw from membership in a Federal Reserve bank, subject to such conditions as the Board may prescribe, prior to the expiration of six months from the date of the written notice of its intention to withdraw. (b) Notice of intention of withdrawal.—Any State bank desiring to withdraw from membership in a Federal Reserve bank should signify its intention to do so in a letter addressed to the Board and mailed to the Federal Reserve bank of which such bank is a member. Such letter should state clearly the reason SECTION 1 1 . BOARD FORMS for the bank's desire to withdraw. Any such bank All forms referred to in this regulation and all desiring to withdraw from membership prior to the expiration of six months from the date of written such forms as they may be amended from time to notice of its intention to withdraw should so state time shall be a part of this regulation. in the letter signifying its intention to withdraw and 18 A bank's withdrawal from membership in the Federal Reserve should state the reason for its desire to withdraw System is effective on the date on which the Federal Reserve bank stock held by it is duly canceled. Until such stock has been canprior to the expiration of six months. celed, such bank remains a member of the Federal Reserve SysEvery notice of intention of a bank to withdraw tem, is entitled to all the privileges of membership, and is required from membership in the Federal Reserve System to comply with all provisions of law and all regulations of the and every application for the waiver of such notice Board pertaining to member banks and with all conditions of membership to it. Upon the cancellation of such stock, should be accompanied by a certified copy of a resolu- all rights andapplicable privileges of such bank as a member bank shall tion duly adopted by the board of directors of such terminate. 17 Under specific provisions of section 9 of the Federal Reserve Act, however, no Federal Reserve bank shall, except upon express authority of the Board, cancel within the same calendar year more than twenty-five per cent of its capital stock for the purpose of effecting voluntary withdrawals during that year. All applications for voluntary withdrawals are required by the law to be dealt with in the order in which they are filed with the Board. Upon the cancellation of such stock, and after due provision has been made for any indebtedness due or to become due to the Federal Reserve bank, such bank shall be entitled to a refund of its cash paid subscription with interest at the rate of one-half of one per cent per month from the date of last dividend, the amount refunded in no event to exceed the book value of the stock at that time, and shall likewise be entitled to the repayment of deposits and of any other balance due from the Federal Reserve bank. FEDERAL RESERVE BULLETIN DECEMBER 1939 APPENDIX 1061 Payment of subscription Whenever the Board of Governors of the Federal Reserve System shall permit the applying bank to Section 9 of the Federal Reserve Act provides as become a stockholder in the Federal reserve bank of the district its stock subscription shall be payable follows: on call of the Board of Governors of the Federal x Applications for membership by State banks Reserve System, and stock issued to it shall be held Any bank incorporated by special law of any State, subject to the provisions of this act. or organized under the general laws of any State or of law to be complied with; reports of of the United States, including Morris Plan banks Provisions and other incorporated banking institutions engaged condition in similar business, desiring to become a member of All banks admitted to membership under authorthe Federal Reserve System, may make application ity of this section shall be required to comply to the Board of Governors of the Federal Reserve with the reserve and capital requirements of this System, under such rules and regulations as it may act and to conform to those provisions of law imprescribe, for the right to subscribe to the stock of posed on national, banks which prohibit such banks the Federal reserve bank organized within the dis- from lending on or purchasing their own stock, which trict in which the applying bank is located. Such relate to the withdrawal or impairment of their application shall be for the same amount of stock capital stock, and which relate to the payment of that the applying bank would be required to sub- unearned dividends. Such banks and the officers, scribe to as a national bank. For the purposes of agents, and employees thereof shall also be subject membership of any such bank the terms "capital" to the provisions of and to the penalties prescribed and "capital stock" shall include the amount of out- by section fifty-two hundred and nine of the Revised standing capital notes and debentures legally issued Statutes, and shall be required to make reports of by the applying bank and purchased by the Recon- condition and of the payment of dividends to the struction Finance Corporation. The Board of Gov- Federal reserve bank of which they become a memernors of the Federal Reserve System, subject to the ber. Not less than three of such reports shall be provisions of this Act and to such conditions as it made annually on call of the Federal reserve bank may prescribe pursuant thereto may permit the on dates to be fixed by the Board of Governors of the applying bank to become a stockholder of such Fed- Federal Reserve System. Failure to make such eral reserve bank. reports within ten days after the date they are called for shall subject the offending bank to a penalty of Branches of State member banks $100 a day for each day that it fails to transmit such Any such State bank which, at the date of the report; such penalty to be collected by the Federal approval of this Act, has established and is operating reserve bank by suit or otherwise. Such reports of a branch or branches in conformity with the State condition shall be in such form and shall contain such law, may retain and operate the same while remain- information as the Board of Governors of the Federal ing or upon becoming a stockholder of such Federal Reserve System may require and shall be published reserve bank; but no such State bank may retain or by the reporting banks in such manner and in accordacquire stock in a Federal reserve bank except upon ance with such regulations as the said Board may relinquishment of any branch or branches established prescribe. after the date of the approval of this Act beyond the limits of the city, town, or village in which the parent Examinations bank is situated. Provided, however, That nothing As a condition of membership such banks shall herein contained shall prevent any State member bank from establishing and operating branches in likewise be subject to examinations made by directhe United States or any dependency or insular pos- tion of the Board of Governors of the Federal Resession thereof or in any foreign country, on the serve System or of the Federal reserve bank by same terms and conditions and subject to the same examiners selected or approved by the Board of limitations and restrictions as are applicable to the Governors of the Federal Reserve System. establishment of branches by national banks except Acceptance of State examinations; expenses; reports that the approval of the Board of Governors of the of examinations Federal Reserve System, instead of the Comptroller of the Currency, shall be obtained before any State Whenever the directors of the Federal reserve member bank may hereafter establish any branch bank shall approve the examinations made by the and before any State bank hereafter admitted to State authorities, such examinations and the reports membership may retain any branch established after thereof may be accepted in lieu of examinations made February 25, 1927, beyond the limits of the city, by examiners selected or approved by the Board of town, or village in which the parent bank is situated. Governors of the Federal Reserve System: Provided, however, That when it deems it necessary the board Financial condition, management and powers may order special examinations by examiners of its selection and shall in all cases approve the form In acting upon such application the Board of ownthe report. The expenses of all examinations, Governors of the Federal Reserve System shall con- of than those made by State authorities, may, in sider the financial condition of the applying bank, other discretion of the Board of Governors of the Fedthe general character of its management, and whether the Reserve System, be assessed against the banks or not the corporate powers exercised are consistent eral examined and, when so assessed, shall be paid by the with the purposes of this act. banks examined. Copies of the reports of such ex1 aminations may, in the discretion of the Board of This and subsequent catchlines are not a part of the law. Statutory Provisions 1062 FEDERAL RESERVE BULLETIN Governors of the Federal Reserve System, be furnished to the State authorities having supervision of such banks, to officers, directors, or receivers of such banks, and to any other proper persons. DECEMBER 1939 companies organized prior to the date this paragraph as amended takes effect and situated in a place the population of which does not exceed three thousand inhabitants and having a capital of not less than $25,000, nor to any State bank or trust comForfeiture of membership pany which is so situated and which, while it is entitled to the benefits of insurance under section 12B If at any time it shall appear to the Board of Gov- of this Act, increases its capital to not less than ernors of the Federal Reserve System that a mem- $25,000. ber bank has failed to comply with the provisions of this section or the regulations of the Board of Gov- Waiver of membership requirements as to insured ernors of the Federal Reserve System made pursuant thereto, or has ceased to exercise banking functions banks without a receiver or liquidating agent having been (The provisions of this paragraph of the statute appointed therefor, it shall be within the power of relate to waiver of membership requirements for the board after hearing to require such bank to sur- banks which were formerly required to become memrender its stock in the Federal reserve bank and to bers of the Federal Reserve System under subsecforfeit all rights and privileges of membership. The tion (y) of section 12B of the Federal Reserve Act. Board of Governors of the Federal Reserve System In view of an amendment of June 20, 1939, repealing may restore membership upon due proof of compli- the requirement for membership, the provisions ance with the conditions imposed by this section. relating to waiver of membership requirements is no longer effective, and, accordingly, is not printed Voluntary withdrawal from membership herein.) Any State bank or trust company desiring to withdraw from membership in a Federal reserve Laws to which subject bank may do so, after six months' written notice Banks becoming members of the Federal Reserve shall have been filed with the Board of Governors System under authority of this section shall be subof the Federal Reserve System, upon the surrender ject the provisions of this section and to those of and cancellation of all of its holdings of capital stock this to act which relate specifically to member banks, in the Federal reserve bank: Provided, That the but shall be subject to examination under the Board of Governors of the Federal Reserve System, provisions not of the first two paragraphs of section in its discretion and subject to such conditions as it fifty-two hundred and forty of the Revised Statutes may prescribe, may waive such six months' notice as amended by section of this act. Subin individual cases and may permit any such State ject to the provisions oftwenty-one this act and to the regulabank or trust company to withdraw from member- tions of the board made pursuant any bank ship in a Federal reserve bank prior to the expiration becoming a member of the Federalthereto, Reserve System of six months from the date of the written notice of shall retain its full charter and statutory rights its intention to withdraw: Provided, however, That a State bank or trust company, and may continue no Federal reserve bank shall, except under express as authority of the Board of Governors of the Federal to exercise all corporate powers granted it by the Reserve System, cancel within the same calendar State in which it was created, and shall be entitled year more than twenty-five per centum of its capital to all privileges of member banks: Provided, howstock for the purpose of effecting voluntary with- ever, That no Federal reserve bank shall be perdrawals during that year. All such applications shall mitted to discount for any State bank or trust combe dealt with in the order in which they are filed with pany notes, drafts, or bills of exchange of any one the board. Whenever a member bank shall surrender borrower who is liable for borrowed money to such its stock holdings in a Federal reserve bank, or shall State bank or trust company in an amount greater be ordered to do so by the Board of Governors of than that which could be borrowed lawfully from the Federal Reserve System, under authority of such State bank or trust company were it a national law, all of its rights and privileges as a member banking association. The Federal reserve bank, as a bank shall thereupon cease and determine, and after condition of the discount of notes, drafts, and bills of due provision has been made for any indebtedness exchange for such State bank or trust company, shall due or to become due to the Federal reserve bank it require a certificate or guaranty to the effect that shall be entitled to a refund of its cash paid sub- the borrower is not liable to such bank in excess of scription with interest at the rate of one-half of one the amount provided by this section, and will not be per centum per month from date of last dividend, permitted to become liable in excess of this amount if earned, the amount refunded in no event to exceed while such notes, drafts, or bills of exchange are the book value of the stock at that time, and shall under discount with the Federal reserve bank. likewise be entitled to repayment of deposits and of any other balance due from the Federal reserve False certification of checks bank. It shall be unlawful for any officer, clerk, or agent of any bank admitted to membership under authorCapital required for membership ity of this section to certify any check drawn upon No applying bank shall be admitted to member- such bank unless the person or company drawing the ship in a Federal reserve bank unless it possesses a check has on deposit therewith at the time such paid-up unimpaired capital sufficient to entitle it to check is certified an amount of money equal to the become a national banking association in the place amount specified in such check. Any check so certiwhere it is situated under the provisions of the fied by duly authorized officers shall be a good and National Bank Act, as amended: Provided, That this valid obligation against such bank, but the act of any paragraph shall not apply to State banks and trust such officer, clerk, or agent in violation of this sec- DECEMBER 1939 FEDERAL RESERVE BULLETIN tion may subject such bank to a forfeiture of its membership in the Federal Reserve System upon hearing by the Board of Governors of the Federal Reserve System. 1063 vided for in lieu of payment upon capital stock shall be applied upon such subscription. If the laws under which any such savings bank was organized be not amended at the next session of the legislature following the admission of such savings bank to membership so as to authorize mutual savings banks to purchase Federal reserve bank stock, or if such laws be so amended and such bank fail within six months thereafter to purchase such stock, all of its rights and privileges as a member bank shall be forfeited and its membership in the Federal Reserve System shall be terminated in the manner prescribed elsewhere in this section with respect to State member banks and trust companies. Each such mutual savings bank shall comply with all the provisions of law applicable to State member banks and trust companies, with the regulations of the Board of Governors of the Federal Reserve System and with the conditions of membership prescribed for such savings bank at the time of admission to membership, except as otherwise hereinbefore provided with respect to capital stock. Government depositaries and financial agents All banks or trust companies incorporated by special law or organized under the general laws of any State, which are members of the Federal Reserve System, when designated for that purpose by the Secretary of the Treasury, shall be depositaries of public money, under such regulations as may be prescribed by the Secretary; and they may also be employed as financial agents of the Government; and they shall perform all such reasonable duties, as depositaries of public money and financial agents of the Government, as may be required of them. The Secretary of the Treasury shall require of the banks and trust companies thus designated satisfactory security, by the deposit of United States bonds or otherwise, for the safe keeping and prompt payment of the public money deposited with them and for the faithful performance of their duties as Reports of affiliates financial agents of the Government. Each bank admitted to membership under this Admission to membership of mutual savings banks section shall obtain from each of its affiliates other than member banks and furnish to the Federal reserve Any mutual savings bank having no capital stock bank of its district and to the Board of Governors (including any other banking institution the capital of the Federal Reserve System not less than three of which consists of weekly or other time deposits reports during each year. Such reports shall be in which are segregated from all other deposits and are such form as the Board of Governors of the Federal regarded as capital stock for the purposes of taxation Reserve System may prescribe, shall be verified by and the declaration of dividends), but having sur- the oath or affirmation of the president or such other plus and undivided profits not less than the amount officer as may be designated by the board of direcof capital required for the organization of a national tors of such affiliate to verify such reports, and shall bank in the same place, may apply for and be ad- disclose the information hereinafter provided for as mitted to membership in the Federal Reserve System of dates identical with those fixed by the Board of in the same manner and subject to the same provisions Governors of the Federal Reserve System for reports of law as State banks and trust companies, except of the condition of the affiliated member bank. Each that any such savings bank shall subscribe for capital such report of an affiliate shall be transmitted as stock of the Federal reserve bank in an amount herein provided at the same time as the correspondequal to six-tenths of 1 per centum of its total ing report of the affiliated member bank, except that deposit liabilities as shown by the most recent report the Board of Governors of the Federal Reserve System may, in its discretion, extend such time for good of examination of such savings bank preceding its cause shown. Each such report shall contain such inadmission to membership. Thereafter such subscrip- formation as in the judgment of the Board of Govtion shall be adjusted semiannually on the same per- ernors of the Federal Reserve System shall be necescentage basis in accordance with rules and regulations sary to disclose the relations between such prescribed by the Board of Governors of the Federal affiliate and such fully and to enable the Board to Reserve System. If any such mutual savings bank inform itself as tobank effect of such relations upon applying for membership is not permitted by the the affairs of such the bank. The reports of such aflaws under which it was organized to purchase stock filiates shall be published the bank under the in a Federal reserve bank, it shall, upon admis- same conditions as govern itsbyown condition reports. sion to the system, deposit with the Federal reserve bank an amount equal to the amount which it would Additional reports of affiliates have been required to pay in on account of a subAny such affiliated member bank may be required scription to capital stock. Thereafter such deposit shall be adjusted semiannually in the same manner to obtain from any such affiliate such additional reas subscriptions for stock. Such deposits shall be ports as in the opinion of its Federal reserve bank subject to the same conditions with respect to re- or the Board of Governors of the Federal Reserve payment as amounts paid upon subscriptions to cap- System may be necessary in order to obtain a full ital stock by other member banks and the Federal and complete knowledge of the condition of the afreserve bank shall pay interest thereon at the same filiated member bank. Such additional reports shall rate as dividends are actually paid on outstand- be transmitted to the Federal reserve bank and the ing shares of stock of such Federal reserve bank. Board of Governors of the Federal Reserve System If the laws under which any such savings bank and shall be in such form as the Board of Governors was organized be amended so as to authorize mutual of the Federal Reserve System may prescribe. savings banks to subscribe for Federal reserve bank stock, such savings bank shall thereupon subscribe Failure to obtain reports of affiliates for the appropriate amount of stock in the Federal Any such affiliated member bank which fails to reserve bank, and the deposit hereinbefore pro- obtain from any of its affiliates and furnish any 1064 FEDERAL RESERVE BULLETIN" report provided for by the two preceding paragraphs of this section shall be subject to a penalty of $100 for each day during which such failure continues, which, by direction of the Board of Governors of the Federal Reserve System, may be collected, by suit or otherwise, by the Federal reserve bank of the district in which such member bank is located. For the purposes of this paragraph and the two preceding paragraphs of this section, the term "affiliate" shall include holding company affiliates as well as other affiliates. Dealings in investment securities and stock State member banks shall be subject to the same limitations and conditions with respect to the purchasing, selling, underwriting, and holding of investment securities and stock as are applicable in the case of national banks under paragraph "Seventh" of section 5136 of the Revised Statutes, as amended. Divorce of stock from stock of other corporations After the date of the enactment of the Banking Act of 1935, no certificate evidencing the stock of any State member bank shall bear any statement purporting to represent the stock of any other corporation, except a member bank or a corporation engaged on June 16, 1934 in holding the bank premises of such member bank, nor shall the ownership, sale, or transfer of any certificate representing the stock of any State member bank be conditioned in any manner whatsoever upon the ownership, sale, or transfer of a certificate representing the stock of any other corporation, except a member bank or a corporation engaged on June 16, 1934 in holding the bank premises of such member bank: Provided, That this section shall not operate to prevent the ownership, sale, or transfer of stock of any other corporation being conditioned upon the ownership, sale, or transfer of a certificate representing stock of a State member bank. DECEMBER 1939 copy of each such agreement shall be filed with the Board of Governors of the Federal Reserve System. Upon the failure of a State member bank affiliated with a holding company affiliate to obtain such an agreement within the time so prescribed, the Board of Governors of the Federal Reserve System shall require such bank to surrender its stock in the Federal reserve bank and to forfeit all rights and privileges of membership in the Federal Reserve System as provided in this section. Whenever the Board of Governors of the Federal Reserve System shall have revoked the voting permit of any such holding company affiliate, the Board of Governors of the Federal Reserve System may, in its discretion, require any or all State member banks affiliated with such holding company affiliate to surrender their stock in the Federal reserve bank and to forfeit all rights and privileges of membership in the Federal Reserve System as provided in this section. Examination of affiliates In connection with examinations of State member banks, examiners selected or approved by the Board of Governors of the Federal Reserve System shall make such examinations of the affairs of all affiliates of such banks as shall be necessary to disclose fully the relations between such banks and their affiliates and the effect of such relations upon the affairs of such banks. The expense of examination of affiliates of any State member bank may, in the discretion of the Board of Governors of the Federal Reserve System, be assessed against such bank and, when so assessed, shall be paid by such bank. In the event of the refusal to give any information requested in the course of the examination of any such affiliate, or in the event of the refusal to permit such examination, or in the event of the refusal to pay any expense so assessed, the Board of Governors of the Federal Reserve System may, in its discretion, require any or all State member banks affiliated with such affiliate to surrender their stock in the Federal reserve bank and to forfeit all rights and privileges of memHolding company affiliates bership in the Federal Reserve System, as provided Each State member bank affiliated with a holding in this section. company affiliate shall obtain from such holding NOTE: The provisions of law specifically referred company affiliate, within such time as the Board of Governors of the Federal Reserve System shall to in section 9 and other provisions to which a State prescribe, an agreement that such holding company bank which is a member of the Federal Reserve affiliate shall be subject to the same conditions and System is subject are printed in the Federal Reserve limitations as are applicable under section 5144 of Act or the Appendix thereto as compiled under the the Revised Statutes, as amended, in the case of direction of the Board of Governors of the Federal holding company affiliates of national banks. A Reserve System. 1065 FEDERAL RESERVE BULLETIN DECEMBER 1939 NUMBER OF BANKS AND BRANCHES, 1933-1939 [Figures for 1939 are preliminary] Nonmember banks Member banks End of year figures except where otherwise indicated Total National State Other than mutual savings and private banks Mutual Private Not Insured1 insured i N u m b e r of B a n k i n g Offices 1933 1934 1935 1936 1937 1938 1939 (Sept. 30) . _ 17,940 19,196 19,153 19,066 18, 927 18, 774 18,667 6,275 6,705 6,715 6,723 6,745 6,723 6,716 1,817 1,961 1,953 2,032 2,075 2,106 2,139 8,556 8,436 8,340 8,224 8,129 9, 341 3 9, 579 1,088 1,043 997 958 926 704 705 698 693 691 690 4 688 103 246 143 139 79 73 5 69 15,029 16,063 15,869 15, 667 15, 387 15 194 15,050 5,154 5,462 5,386 5,325 5,260 5 224 5,197 857 980 1,001 1,051 1,081 1 114 1,144 8, J41 7,693 1,108 1,046 7,728 1.004 7,588 960 7,449 7,316 917 7,211 883 579 579 570 565 563 555 552 98 241 138 134 74 68 63 2,911 3 133 3 284 3,399 3 540 3,580 3,617 1 121 1 243 1 329 1,398 1 485 1,499 1,519 981 952 981 994 992 995 125 126 128 128 128 135 136 5 5 5 5 5 5 6 N u m b e r of B a n k s (Head Offices) 1933 1934 1935 1936 1937 1938 _ 1939 (Sept. 30) __ . _ N u m b e r of B r a n c h e s ' 1933 1934 1935 1936. 1937 1938. 1939 (Sept. 30) _. _ __ „ . . . 960 7TO 778 828 848 891 908 918 42 39 37 41 43 i Federal deposit insurance did not become operative until January 1, 1934. a Thefiguresfor December 1934 include 140 private banks which reported to the Comptroller of the Currency under the provisions of Section 21(a) of the Banking Act of 1933. Under the provisions of the Banking Act of 1935, private banks no longer report to the Comptroller of the Currency and, accordingly, only such private banks as report to State banking departments are in thefiguresshown for subsequent years. * Separatefiguresnot available for branches of insured and not insured banks. * Comprises 50 insured banks with 21 branches and 502 uninsured banks with 115 branches. *6 Comprises 1 insured bank with no branches and 62 uninsured banks with 6 branches. The number of branches in head-office cities and outside head-office cities, respectively, were as follows: 1933.___ 1934 1935 1936 1937 _. 1938.. _. 1939 (Sept. 30). In head-office cities Outside head-office cities 1,784 1,776 1,754 1,749 1,757 1,743 1, 742 1,127 1,357 1,530 1,650 1,783 1,837 1,875 1066 FEDERAL RESERVE BULLETIN DECEMBER 1939 ANALYSIS OF CHANGES IN NUMBER OF BANKS AND BRANCHES, JANUARY 1—SEPTEMBER 30,1939 [Preliminary figures] Member banks Total National State Nonmember banks Other than mutual savings and private banks Insured Mutual savings Private Not insured Analysis of B a n k Changes 15,194 5,224 1,114 7,316 917 - +17 +3 +1 +11 +2 ___ -36 -28 -97 -4 -3 -26 -2 -3 -4 -20 -10 -60 -9 -8 Number of banks on December 31 1938 Increases in number of banks: Primary organizations (new banks) * Decreases in number of banks: Suspensions Voluntary liquidations 2 _ Consolidations, absorptions, etc Inter-class bank changes: Conversions— State into national National into State __ Federal Reserve membership—3 Admissions of State banks . « Withdrawals of State banks Federal deposit insurance—4 Admissions of State banks Withdrawals of State banks +13 -10 ___. -» -9 -4 +2 +49 +8 -4 Net increase or decrease in number of banks -3 68 -1 -4 -49 +4 +15 -15 . Number of banks on September 30,1939 A 555 -144 -27 +30 -105 -34 -3 -5 15,050 5,197 1,144 7,211 883 552 63 3,580 1,499 992 908 41 135 5 +35 +37 +5 +11 +5 +4 +22 +21 +2 —9 -26 -4 -7 -10 -2 -12 -4 +4 Analysis of B r a n c h Changes Number of branches on December 31, 1938 Increases in number of branches: De novo branches Banks converted into branches Decreases in number of branches: Suspension of parent bank Otherwise discontinued «« Inter-class branch changes: Branches of a National bank which became a State member bank Branch of a National bank which became a branch of a nonmember bank - Branches of a nonmember bank which became a National bank Branches of nonmember banks which became branches of State Tnembpr bfvnks 5 Net increase or decrease in number of branches Nmnber of brapches'^p September 30,1939 —1 +13 +1 +1 +1 -13 +7 -7 +37 +20 +3 +10 +2 +1 +1 3,617 1,519 995 918 43 136 6 i Exclusive of new banks organized to succeed operating banks. a8 Exclusive of liquidations incident to the succession, conversion and absorption of banks. Exclusive of conversions of national banks into State bank members, or vice versa, as such conversions do not affect Federal Reserve membership. 4 Exclusive of conversions of member banks into insured nonmember banks, or vice versa, as such conversions do not affect Federal Deposit Insurance Corporation membership. * Includes 2 branches of an insured nonmember bank which was absorbed by a State member bank and 5 branches of 3 insured nonmember banks which became State member banks. Back figures—See Annual Report for 1938 (tables 13 and 14), and BULLETIN for November 1937, pp. 1084-1122. DECEMBER 1939 FEDERAL RESERVE BULLETIN 1067 RESTORATION OF NETHERLANDS GOVERNMENT'S POWER TO PROHIBIT THE EXPORT OF GOLD The embargo on the exportation of gold from the Netherlands which came into force on October 1, 1936, was repealed by Royal decree of June 28, 1938. An act of November 25, 1938, restores the effect of the original measure of 1936. The Crown is now authorized, on recommendation of the Minister of Finance, to prohibit temporarily the export of gold coin and gold bullion. Power to authorize exemptions from the prohibition will be granted to the Minister whenever the embargo becomes effective. The amendments made by the act of November 25, 1938, came into force on December 10, 1938. An unofficial translation of the act of September 30, 1936 (Staatsblad No. 101), as amended by the act of November 25, 1938 (Staatsblad No. 408), published as an appendix to the Annual Report of the Netherlands Bank for 1938-1939, is given herewith. The two preceding measures relating to the embargo on gold were published respectively in the BULLETIN for December, 1936 and October 1938. AUTHORIZATION TO PROHIBIT THE EXPORT OF GOLD Article 1. As soon as this act comes into force, the royal decree of September 26, 1936, No. 52, prohibiting the export of gold coin and gold bullion shall acquire force of law as from the day on which it was signed. The prohibition shall remain valid until repealed by royal decree; its repeal shall be published in the Nederlandsche Staatscourant. Article Ibis. The Crown is authorized, on the recommendation of the Minister of Finance, to prohibit temporarily the export of gold coin and gold bullion, as from a date to be fixed by the Minister of Finance and with the proviso that exemptions from the prohibition may be granted in special cases by or on behalf of the said Minister. The provision of the second sentence of article 1 shall apply to this prohibition. After the issue of a royal decree as referred to in the first paragraph of this article a bill shall be introduced without delay in the States General in order to have the prohibition sanctioned by law. If the bill be withdrawn, or rejected by the States General, the royal decree shall be repealed without delay. Article 2. The provisions of the act of August 3, 1914 (Staatsblad No. 334), as amended by existing or future laws, shall apply to the prohibition of article 1 and article Ibis in a like manner as would be the case if the prohibition were decreed by virtue of the said act, except in so far as the prohibition itself contains provisions to the contrary. Article 3. This act shall come into force on the day after its promulgation. 1068 FEDERAL RESERVE BULLETIN DECEMBER 1939 ANNUAL REPORT OF THE NETHERLANDS BANK The annual report of the Netherlands Bank viction that the world will come to its senses for the year ending March 31, 1939, was pre- and be able to create the possibility for sented to the general meeting of shareholders collaboration and mutual support. Two reon June 6, 1939, by Dr. L. J. A. Trip, Presi- flections are the main foundation of this condent of the Bank. Sections of the official viction. Firstly, there is no doubt that a new English translation of the report published world war, at the present stage of technique by the Bank are given herewith: 1 and armaments, would have such annihilatInternational political developments.—The ing consequences, not only of a material financial year which ended on March 31,1939, nature and for the armed forces in direct was largely influenced by the development of conflict, but also for the civil population, international political relations. These rela- especially women and children, that common tions created constant unrest and uncertainty sense refuses to accept as possible the unwhich turned, on several occasions, into panic chaining of such slaughter and the willingand war-scare. This led to armaments being ness of the peoples to subject themselves to it. increased to a level which it will be impossible Secondly, it is a fact that a world war would to maintain. It is comprehensible and ex- lead to such chaos that there could be no plicable that in a world in which the menace question of gathering the fruits of victory, of armed forces plays as important a role and the present-day powers would not suras it; does today, no other possibility can be vive the calamity. envisaged than the concentration of all forces International financial and economic develtowards strengthening the fighting services. opments.—The above remarks not only lead This also applies to countries which nobody to the conclusion that the economic, financial for a moment suspects of aggressive inten- and monetary future is absolutely uncertain, tions. It is, however, incomprehensible and dependent as it is on international political inexplicable that the world has neither the relations; it implies at the same time that it strength nor the will to leave the road to ruin is exceedingly difficult, if not impossible, to and to put an end to the senseless race. It is form an accurate idea of the present situation surely clear to all who wish to see, that no in the three spheres just mentioned. The country will be able, in the long run, to keep situation is subject to the influence of so up the present-day tempo and the present exabnormal, artificial and unsound factent of its armaments and expenditure. Ac- many tors that a correct estimate as to the share of cording to an estimate relating to this matter, each of these is impossible. Morethe various governments together must bor- over, the actualfactors situation is repeatedly underrow almost 2,000,000,000 guilders a month to going radical changes at very short notice. cover their budgetary deficits. The unlimited armaments have already Under the circumstances thus briefly dementioned above. Next, attention must scribed one asks oneself whether there is any been be called to the ever-advancing isolation of sense in economic and financial contempla- individual countries. Despite the admission tions as, long as there is so little certainty that more extensive commercial intercourse about political developments. For it is in is of the most vital importance, every day these developments, as experience teaches brings new impediments imports and, conagain and again, that the decisive factor for sequently, to exports. Intopractice, all counthe future lies. Economic revival, financial tries are continuing their efforts to further recovery and monetary stability are unthinktheir exports, often accepting most unsound able unless international political relations show a considerable improvement, the fear of and unfruitful means, and at the same time war is banished, and armaments are reduced to restrict their imports. That such efforts to a reasonable level. In the meanwhile it have no chance of success is self-evident. It would be inadmissible, in my opinion, to as- is impossible to reserve the home market for sume that the conditions just described could home prgduction and at the same time to ennot be fulfilled. We may not give up the con- large sales on foreign markets. In reality these efforts to further exports whilst at the 1 The report, which is available also in Dutch, contains in addi- same time restricting imports are only part tion sections dealing with the money market, interest rates, the capital market, exchange rates, etc., together with a number of of the whole system of artificial and in many tables. For earlier reports, see BULLETIN for August 1938 and cases mutually contradictory measures which 1937, July 1936, 1934, 1933, September 1932, August 1931, etc. DECEMBER 1939 FEDERAL RESERVE BULLETIN are being taken to a growing extent in various countries and styled economic policy. Among these measures, those in the monetary and financial field play an important part. A progressive development can be traced here. In the beginning it was expected that a lowering of the gold value of monetary units would lead to a corresponding rise in commodity prices while a policy of cheap money and expansion of credit was to stimulate private enterprise. When this expectation was not fulfilled and the said policy would apparently not yield the desired results, refuge was taken in a great increase in government expenditure, which caused budget deficits to grow rapidly. It was supposed that this would make private business revive in a relatively short time, and that the government would then be able to reduce its intervention within the limits of its revenue. This expectation was not realized either, with the result that the level of government expenditure and budget deficits was maintained and even raised on the assumption that, in this way, the national income and prosperity would increase. Not in all countries were the motives of the government's policy along the lines just indicated stated in so many words. In several cases this reasoning was even expressly repudiated. But in actual fact things have on the whole moved in the direction indicated above. Depreciation of national monetary units, a policy of cheap money, great increase of government expenditure, growing budgetary deficits, which are taking on a mpre and more permanent character, are the principal characteristics of the development. In my opinion it cannot be said that this development has led to a lasting improvement. Nor is it reasonable to suppose that one can go on in this direction much longer. This applies especially to the policy of anticipating on future income and future savings, which is being followed nowadays in various countries. Even in the wealthiest countries there is a limit to the reserves which they sacrifice in order to pursue their present line of action. As to the measures in the economic field, I have already mentioned the continuous curtailment of international trade which is going hand in hand with persistent endeavors to reserve the home market for home production. As an inevitable consequence, governments have come to interfere to a rapidly increasing extent in almost every branch of 1069 economic life. A process of cartellizing national business life under the guidance and stimulus of the government is well under way in various countries. This will no doubt result in rigidity followed by higher prices and increased cost of production. Experience has taught that cartels and trusts involve a tendency to maintain or force up price levels. As long as the government refrained from cooperation and stimulation, there was a certain corrective in the freedom of participation and in the initiative and competition of outsiders. If the government bars the way to this corrective, as seems to be more and more the case, harmful consequences will make themselves felt. The burden which is consequently put on the consumer, added to the influence of monetary and fiscal measures, will not fail to lead to impoverishment, a decrease in consumption and the growth of unemployment. The power of the government reaches far, but not so far as to enable it to enforce greater consumption when the required means and confidence on the part of the consumers are lacking. It is true that the government could, by distributing money, create the impression for a certain time that the consumers have increased purchasing power at their disposal; but, as experience has already taught and as the future will certainly show once more in a painful manner, this is only a question of shifting purchasing power, the result of which can be neither sound nor lasting. Only cheaper and more extensive production, gradually increasing international trade, and the liberation of economic life from the innumerable impediments which are constantly neutralizing the essential elasticity in prices and cost of production, and from the excessive burden of taxation in various forms, which is stifling private initiative and investment, can bring goods within the reach of consumers on a larger scale and at lower prices. Only then will sound and lasting purchasing power and a permanent increase of employment be created. I know that my view is not in agreement with the wishes of the powers that determine the line of action in most countries. But this may not deter me from bringing to the fore and from defending that view again and again, particularly because I am convinced that sooner or later the facts will show that we cannot go on along the road which we are following at present, and that we shall 1070 FEDERAL RESERVE BULLETIN have to change our course from sheer necessity. It will then be deplorable that so much more has been lost and that the sacrifices to be made will weigh so much more heavily than would have been the case if the way of least resistance had been abandoned sooner. After what has been said above, the reader will not be surprised that my expectations for the future, even apart from the international political situation, cannot be favorable. That the considerable decline in economic activity which was noticeable in 1938 as compared with 1937, did not degenerate into a crisis, and that consequently a comparison with 1936 does not lead to downright unfavorable results, cannot change these expectations. The same applies with regard to the improvement shown by the second half of 1938 as compared with the first part of that year. Apart from the fact that the first months of 1939 saw the end of this improvement, it suffices to refer to the many artificial and unsound factors and measures which I have already mentioned and which are little apt to free the world of the everrecurring declines in trade which have been experienced since the end of the war of 1914. The decline in 1938 is shown by the following index figures, in the computation of which 1929 is taken as 100. Industrial world production, which rose from 109.5 in 1936 to 117.7 in 1937, declined to 109.8; world trade, the value of which, in gold, had reached 46.4 in 1937, after having been 37.4 in 1936, diminished to 40.2; the sea freights of tramp shipping, which had reached the high figure of 132.6 in 1937 after having been 87.4 in 1936, fell to 100.9 in 1938; shipbuilding moved from 89.7 in 1936 to 102.1 in 1937 and to 84.4 in 1938; wholesale prices fell from 78.6 in 1937 to 63.0 in 1938 and thus came below the 1936 figure of 69.7. International monetary developments.—In the monetary field there has also been a decline. This can be seen from the following survey which gives the gold value of the national monetary units of a number of countries on March 31, 1938, and March 31, 1939, respectively. The changes that occurred were all in a downward direction. The most important was the movement of the French franc, which showed a further decline of its gold value by 13.60 per cent. After that comes the Japanese yen with 5.96 per cent followed at a short distance by the pound sterling and the DECEMBER 1939 DEVELOPMENT OF THE GOLD VALUE OF VARIOUS MONETARY U N I T S Gold value March 31, 1938 Gold value March 31, 1939 Decline in per cent (In fine grammes) U. S. dollar Belga Guilder. ._ Pound sterling Danish crown . Norwegian crown Swedish crown French franc Swiss franc _ _ Japanese yen.. . . __ .. 0.8863 0.1498 0. 4907 4. 4030 0.1965 0. 2212 0. 2269 0.0272 0. 2032 0. 2568 0.8863 0.1492 0. 4705 4.1495 0.1852 0.2085 0. 2138 0.0235 0.1989 0. 2415 0.40 4.12 5.76 5.75 5.74 5.77 13.60 2.12 5.96 monetary units of the other countries of the sterling bloc with about 5.75 per cent. The decline of the Netherlands guilder amounted to 4.12 per cent while that of the Swiss franc was only 2.12 per cent. These figures show once more that there is still no question of stability in the rates of exchange and that the monetary agreement in existence between the United States, Great Britain, France, Belgium, the Netherlands and Switzerland provides no adequate security in the monetary sphere. Capital movements, which periodically assumed large proportions under the influence of international political difficulties, must be considered as the main cause of the fluctuations in the rates of exchange. There has been a strong flow of capital to America. In addition, the trade balance of the United States showed a substantial excess of exports of more than $1,100,000,000. Imports into this very important country declined in value by 35.8 per cent while the value of exports only diminished by 7.6 per cent. This situation stands in peculiar contrast with the position of the United States as a creditor country, and is naturally apt to increase the existing difficulties in no small measure. Notwithstanding the very welcome efforts of the Secretary of State of the United States to further international commercial intercourse, which once more found expression in the trade agreement with Great Britain, the results have until now remained considerably below what is desirable and necessary. In the light of the above it is not surprising that the flow of gold to the United States did not only continue but showed a substantial increase. The monetary gold stock of that DECEMBER 1939 FEDERAL RESERVE BULLETIN 1071 country amounted to $12,760,000,000 at the in the gold stock of the Bank of England on end of 1937 and had risen to $14,512,000,000 account of the fact that that stock was still by the end of 1938. This increase exceeded valued at the old price. It is generally—and the total gold production of the world in 1938 rightly—admitted that this policy of reservby no less than $466,000,000. It has con- ing the profits of the revaluation is an obvious tinued during the current year, amounting requirement of sound financial management. in the first quarter to $746,000,000. Gold production.—The world's gold proThese facts illustrate the lack of balance duction rose to 1,142,925 kilograms in 1938, in the economic structure of the world of to- thus exceeding the corresponding figure for day. Until the return of international con- 1937 by more than 5*4 per cent as against fidence, which forms the essential basis for an increase of 5 per cent from 1936 to 1937. a more extensive traffic in goods, credit and A new record was thus attained in the past capital, an improvement can hardly be ex- year. The value of the production amounted pected. The same applies to greater stability to $1,286,250,000 in United States dollars of in the rates of exchange. As to this point, the new parity. As has already been menit is perhaps an advantage that monetary tioned, considerably more than this amount manipulations are less in the center of inter- of gold flowed to the United States in 1938. est at present than they were a few years According to the statements made on the ago, because the inexpediency of such manip- subject it may be assumed that the monetary ulations is now recognized in wider circles, policy of the United States will be maintained. and because the freedom in the monetary field The importance of this both to the world and which nearly all countries have now reserved to the country itself can hardly be overestifor themselves makes it less likely for an mated. There is no denying that the world individual country to be able to improve its price of gold is founded on this policy. If position by making use of this artificial de- the present fixed relation between the dollar vice. If this is correct, the essential impor- and gold were abandoned, a general monetary tance of a firm maintenance of the exchange dislocation would, in my opinion, set in, which rates is obvious, and its necessity should be would involve very detrimental consequences fully taken into account when conducting the for economic and financial conditions in the wofld including America herself. The results national economic and financial policy. The various equalization funds and cen- which the manipulations of various monetary tral banks have endeavored in close collabo- units have brought about have by no means ration to prevent serious shocks and violent fulfilled expectations. In no case can they fluctuations which, without this cooperation, form the foundation of an international monwould no doubt have arisen on several occa- etary system which could satisfactorily resions in the past year. In this connection place the gold standard. That it was possible the monetary agreement above referred to to attain a certain degree of stability of the has doubtless rendered a great service. Its rates of exchange is, I am convinced, to be maintenance and, as far as possible, its ex- attributed to the close connection with gold tension and strengthening are among the which was created by the scheme adopted in the United States. If experience, especially first requirements of practical politics. In Great Britain an act was passed on that of the last few years, has placed one February 28, 1939, to value the gold stock of fact beyond doubt, it is this, that we cannot the Central Bank once in each week.2 I can- dispense with gold as an international means not attach much importance to this measure of payment. This leads, in my opinion, to as a matter of principle. What has actually the inevitable conclusion that a fixed basis happened is, that a change has been made in on which gold is purchased and sold in the the method of bookkeeping, which has been various countries is necessary and that the brought more into line with reality. In this factors which govern the mutual relations connection it must be borne in mind that between cost and price levels in the countries almost the whole of the book profits which concerned must leave room for such modiresulted from the first revaluation, was trans- fications as are necessary to maintain this ferred to the Exchange Equalization Account basis. so that a reserve in the books of this fund Monetary gold stocks.—As regards the took the place of the latent reserve contained monetary gold stocks, the lack of complete data about the various equalization funds See BULLETIN for April 1939, page 271. 2 1072 FEDERAL RESERVE BULLETIN makes it impossible, this year no less than last, to give an exact survey. The afflux of gold to six countries 3 exceeded the world's gold production of the last four years by more than 13 per cent. The flow to the four countries (the United States, Great Britain, Netherlands and Switzerland) whose stocks show an increase, exceeded the production by almost $3,600,000,000. The uneven distribution of the monetary gold is clearly seen from these figures. It is also illustrated by the fact that more than 80 per cent of the total estimated gold stock of the world is in the hands of the six countries included in the list. This maldistribution, as well as the still increasing gold production, are problems which have been pushed into the background under the present circumstances and can only be solved when the world is prepared to return to collaboration in the economic and financial sphere. Conditions in the Netherlands.—What I have said above regarding the development of the world applies on the whole also to the Netherlands. There have been no important differences between the course of events in this country and that in the world, as far as the latter was not influenced by quite special circumstances. According to the figures and data available, it cannot be said that developments in the Netherlands were unfavorable as compared to those in other countries with which comparisons can be made. The decline in trade which occurred in 1938 also made itself felt here. What I have said above about the numerous artificial and often contradictory measures which render it difficult to make a correct diagnosis of the real situation and which are apt to increase rather than to diminish the lack of balance in the economic structure, also applies to the Netherlands. The Netherlands too are continuing to restrict imports despite the very exceptional importance of international trade and shipping to the country on account of its geographic situation, its history and the character of its population. In the Netherlands, too, one can trace the phenomena of increased government expenditure, a long series of growing budgetary deficits, depreciation of the monetary unit and pressure on the consumer and on private enterprise. It is strange that some circles are 3 The United States, Great Britain, France, Netherlands, Switzerland and Belgium; comparison is based on gold holdings, at the end of 1934 and 1938, of central banks of the six countries plus $1,800,000,000 in the United States Stabilization Fund. Gold in other equalization funds is left out of account. DECEMBER 1939 pleading for more rapid progress along the road of the above-mentioned financial and monetary measures, although the bad results in the countries where they have been most consistently and extensively enforced are obvious. I do not mean to say with the above that the Netherlands could have maintained their old policy of laissez-faire under the circumstances which have developed in the world, and that they could have refrained from all government interference with economic life. It is absolutely essential that foreign aggression should be warded off, and that the means of the country's national existence should be defended and maintained. But it is equally essential fully to realize the necessity not only of avoiding a rise in the cost of production and the cost of living in the Netherlands, but of furthering a reduction in the level of these costs. In my opinion the future cannot be faced confidently in this respect. The process of cartellizing, which is at present going on in the Netherlands under the guidance and insistence of the Government, is sure to have an unfavorable effect. The same applies to the considerable rise in the tariff of protective import duties which became effective a few months ago. If the Government interferes on a large scale with economic conditions and the development of economic life, it cannot, in my opinion, refuse to take upon itself the care and responsibility for the level of the cost of production and the cost of living in the country itself, and for the maintenance of the required equilibrium in this respect with the principal countries with which the Netherlands have to compete internationally. It is not by means of export bounties but only by the maintenance of the required relation between the said costs at home and abroad, and by the gradual improvement of this relation, that foreign competition can be sustained with success. To my mind, there is every reason to pay close attention to this point. There is little doubt that there is a growing lack of equilibrium between costs and prices in the "sheltered" part of Holland's economic life on the one hand, and costs and prices in those trades and industries that are dependent on international competition, on the other. It is to be feared that this disharmony will increase as a result of the protective measures that have been taken, and of the organization among producers for the home market. DECEMBER 1939 FEDERAL RESERVE BULLETIN The course of affairs just indicated seems to me to involve danger for the international economic position of our country and for a sound and lasting extension of employment. In this connection attention must also be called to the new social and fiscal burdens which will weigh heavily on industry and trade if the measures proposed and announced by the Government are accepted. As far as I have been able to calculate, the additional burden which trade and industry will have to bear, as a result of the new measures alluded to, will exceed 60,000,000 guilders a year. It is clear that this will reduce still further the spirit of enterprise, the possibilities to invest and the revival of economic life which are already so much hampered by existing circumstances and government interference. Experience in other countries has repeatedly shown that a real recovery is only attainable when business life can work and employ people on the foundation of reasonable prospects and possibilities. It is difficult to understand how increased social and fiscal burdens of such magnitude can be reconciled with the very correct opinion expressed by the Government itself, that a reduction of unemployment can best be attained by creating such conditions for industry and trade as to enable them to employ the largest possible number of workmen. Very careful consideration should be given to the questions whether, under the present circumstances, expensive social measures are justified and whether economic life in the Netherlands may in addition be burdened with new taxes which will lead to serious fiscal and economic consequences. I do not hesitate to answer these questions in the negative. This does not mean that the state of affairs which has been arrived at in government finances, particularly as a result of armament and unemployment expenditure, does not call for radical measures. On the contrary, the budgetary prospects of the Government and the municipalities make such measures an urgent necessity. In order to preserve its most valuable asset, its freedom and independence, the Dutch nation will have to make considerably heavier sacrifices than it has, until now, been prepared to make. That under the prevailing circumstances a certain loss of capital and reserves is as inevitable in the Netherlands as it is elsewhere may be true; but this does not alter the fact that a correct understanding of the real situa- 1073 tion has not penetrated sufficiently, and that, consequently, the impoverishment will assume larger proportions than is in accordance with the required provision for the future of the country and the people. As things look at present, the Dutch nation will not be able to maintain its present standard of living. Unless it is prepared to make the inevitable sacrifices now and, instead of clinging to the maintenance of its nominal income, to cooperate in reducing public expenditure, cost of production and cost of living, greater sacrifices will be imposed by the force of circumstances. Some time ago I cooperated in a public appeal and warning against the tendency referred to above. I am firmly convinced that that which was explained and emphasized in the document concerned, is right and will be confirmed by future developments. In the meanwhile it has appeared that those who bear the responsibility are of another opinion or in any case that they do not at present feel at liberty to act according to the above-mentioned appeal. Under these circumstances it is useless to enter into further djetailed argumentation. The future will have to pass judgment, and the facts will show how long and with what results the road now taken can be followed. The Netherlands Bank.—There were no changes of importance in the task and activities of the Netherlands Bank during the past year. The management of the Equalization Fund continued to demand constant attention and extensive work. This applies to the technical execution as well as to consultations with the Government and with the managements of foreign equalization funds and central banks. As is well known, the buying and selling of gold, which was one of the principal parts of the activities of the Netherlands Bank, was transferred to the Equalization Fund when the gold standard was abandoned. In this way a source of profit was cut off, the comparative significance of which had grown in connection with the extensive gold movements of post-war years on the one hand, and on account of the decline in the Bank's credit business on the other. Experience has shown that the remuneration which the Bank receives for the management of the Fund is not sufficient to make good the loss just mentioned. As regards the general line of development, there is a considerable difference between the year under review and the year 1937-1938. 1074 FEDERAL RESERVE BULLETIN DECEMBER 1939 This difference does not lie in the character when the current items showed a credit balof the main factors which dominated gold ance. However carefully and conscientiously movements and the course of the rates of the official figures have been compiled, no exchange. As has already been recorded definite conclusions can be drawn from them above in connection with the general mone- as to the question whether, in a given year, tary situation, these factors again consisted the current items have been in equilibrium, mainly in capital movements. The difference or what the amount of the credit balance, if to which I am referring, lies in the fact that any, has been. For 1937 this becomes evident the capital movements of which I gave a when one sees that the figures leave an unshort survey in my last report, and which explained difference of no less than 499,000,caused the demand for guilders considerably 000 guilders, an amount which exceeds the to exceed the supply, did not continue in 1938- entire debit balance on merchandise account 1939. This can be seen from the figures of by 97,000,000 guilders. This does not alter the gold stock of the Netherlands Bank. Let the fact that the compilation and publication it be clearly understood, however, that they of the figures are of great importance in only indicate a tendency and are no gauge of order to indicate the direction in which the the extent of the movements. At the end of various known items are moving. It seems the financial year 1937-1938 the Bank's gold to me that the remittance relation between stock amounted to 1,466,200,000 guilders. the Netherlands and the Netherlands Indies After an initial increase to over 1,481,200,000 a source of great difficulty in judging a guilders this level was maintained, with slight is year. For example, the profits of fluctuations, from the beginning of June, given companies working in the Netherlands Indies 1938, to the beginning of December, 1938, are not remitted as separate amounts. They when it fell to 1,461,200,000. It started are included in the yield of the products exfalling again in the second half of February, ported, and the year in which they are re1939, and continued to do so until, by the end mitted rarely coincides with the year in which of the financial year, the gold stock had they are distributed among those entitled to diminished to 1,322,500,000 guilders. At the a share in these profits. The latter year, howtime of writing it amounts to 1,209,500,000 ever, is taken as that of the remittance in guilders. As can be deduced from these compiling the official figures. figures and from other data at our disposal, Although some reservations should be made capital is moving away from the Nether- on account of what has just been said, it lands. The political factors, repeatedly re- should be pointed out that the import balance ferred to above, have led to the withdrawal for 1938 on merchandise account showed only of the foreign money that had sought refuge a decrease of 26,000,000 guilders as compared in the Netherlands. The buying of foreign— with 1937 while, on the other hand, the proespecially American—securities has also ex- ceeds of the exp.orts from the Netherlands erted an influence, although this factor has not been so important as one might suppose Indies as well as the yield of the services renjudging by the number of foreign securities dered by the Netherlands—on account of the that have been* introduced here. Finally, fall in freights—have suffered a considerable though one cannot speak of capital flight, decline. Considering the strong position of there has been a certain transfer of liquid the guilder and its gold cover, this developfunds from the Netherlands to other coun- ment obviously constitutes no reason for tries. There is no reason to deplore this. anxiety. It may, to a certain extent, have That foreign funds which were held in the contributed in the direction of the capital Netherlands at short notice have gone again, movement referred to above. can only be considered as an advantage, while The depreciation of the guilder increased the other two factors mentioned above have during the financial year under review. On not in the least affected the position of the March 31, 1938, it amounted to 18.68 per Netherlands and of the guilder. cent as against 22.02 per cent on March 31, Another point which should be mentioned 1939. Thus the guilder once more arrived at in this connection, is that, as far as can be the level at which it stood at the beginning judged at present, the balance of payments of October 1936. While the percentage of of the Netherlands for 1938 presents a some- the depreciation decreased during the period what different picture from that for 1937, in which the demand for guilders exceeded DECEMBER 1939 FEDERAL RESERVE BULLETIN 1075 the supply, it has increased now that the tive pressure on sterling. As Holland is one of the parties to the monetary agreement, situation is reversed. Although the extremely abundant supply the Netherlands Bank was among the cenon the money market has been somewhat in- tral banks to which the Bank of England fluenced by the efflux of gold, the quotations addressed itself in this connection, and we have nevertheless remained at a very low have gladly given the desired cooperation. level. Except during a few days in Septem- We were of opinion that speculation was inber 1938, signs of an upward tendency were deed playing an important part in weakening not perceived until the last month of the finan- the position of the British currency; and we cial year, and this largely under the influence felt that a further decline of sterling and of the international political situation. If with it of the monetary units of the counthis upward movement in money rates per- tries belonging to the sterling bloc, would sists, it may lead to the restoration of more involve serious consequences of a monetary normal conditions in the money market and and economic nature. We therefore invited enable the Netherlands Bank to regain its the commercial banks which had, a few years influence on that market. The conditions ago, joined the gentlemen's agreement to that were created by the strongflowof capital defend the guilder to collaborate; and to our to the Netherlands can hardly be considered satisfaction all institutions concerned desound. The efflux of foreign capital has had clared themselves ready to act according to practically no effect on the rates of interest our wishes. The measures taken by the in the money market. This is to be attributed British authorities had a favorable result. to the correct policy which the commercial Not only could the sterling-dollar rate be banks in the Netherlands have followed with maintained; it showed a marked improveregard to their liquidity. If, however, the ment by rising from 4.628 on January 3,1939, internal situation, apart from the withdrawal to 4.681 on March 31, 1939. of foreign money, should cause a contraction For the sake of completeness, mention on the money market, the inevitable conse- should be made of the fact that the embargo quences as to the rates of interest would have on the export of gold coin and gold bullion, to be accepted, although it would be advisable issued in this country when the gold standard to prevent the rates from going up too sud- was abandoned, and sanctioned by the act denly. Efforts to maintain the recent ab- of September 30, 1936 (Staatsblad No. 101), normally low rates of interest by artificial was repealed upon our suggestion by the interference must, in my opinion, be rejected Minister of Finance as from August 7, 1938. as unsound. In the long run they would, In practice, the embargo had already been moreover, be doomed to failure. suspended since June 17, 1937, licenses to When the British authorities took strong export gold having been granted freely and measures at the beginning of 1939 to defend on an unlimited scale from that date. By their currency and to restrict speculation virtue of the act of November 25, 1938 against sterling, the Bank of England asked (Staatsblad No. 408), the Minister of Finance of gold the other parties to the monetary agreement is authorized to prohibit the export to cooperate in these endeavors by putting a again under certain circumstances.4 stop, as far as possible, to gold transactions text of the Act of September 30, 1936, as amended by in their markets which might exert specula- the The Act of November 25, 1938, is given on p. 1067. 4 1076 FEDERAL RESERVE BULLETIN DECEMBER 1939 BALANCE SHEET OF THE NETHERLANDS BANK AS OF MARCH 31, 1939, AND MARCH 31, 1938 [In thousands of guilders] Assets March 31, 1939 March 31, 1938 Gold coin 113, 557 106, 638 Gold bullion 1, 215, 834 1, 352, 681 13, 744 Silver coin 23, 815 4,291 Correspondents abroad 6,011 5,400 2,700 Foreign bills. 9,111 Domestic bills 9,728 77, 718 Loans 73, 713 221, 545 Advances in current account 134, 310 Advances to the Government (law of May 27, 1932) 7,630 Investments in shares listed by the Amsterdam Brokers' Association 34, 994 34, 525 Shares of the Bank for International Settlements, 1,209 of which 25 per cent is paid in 1,209 7,784 Other investments 8,657 619 Net balance with banking correspondents 253 66 Cash items _._ 35 542 Interest accrued on loans 479 128 Interest accrued on advances in current account.. 120 358 Interest accrued on investments 351 71 Commission account 40 4,580 Bank premises and furniture 4,580 Total assets.__ 1, 630, 626 1, 857, 306 Liabilities Notes in circulation Current accounts Other demand liabilities Capital Reserve fund Special reserve Pension fund Unearned discount on domestic bills Unearned discount on foreign bills Dividends payable Balance of profits at the disposal of the general meeting Total liabilities. March 31, 1939 1,014,184 571, 493 82 20,000 4,277 7,757 12, 120 6 2 23 March 31, 1938 934,313 877,879 453 20,000 4,861 7,102 12,000 3 3 23 682 1, 630, 626 l r 857, 306 DECEMBER 1939 FEDERAL RESERVE BULLETIN 1077 ANNUAL REPORT OF THE CENTRAL BANK OF THE ARGENTINE REPUBLIC The annual report of the Central Bank of the value of 202,000,000 pesos, decided upon the Argentine Republic for the fourth finan- by the National Government in 1937. The cial period, covering the year ending Decem- advantages of the first named procedure lie ber 31, 1938, was submitted by the Board of not only in the saving effected through not Directors to the Meeting of Shareholding actually moving the gold, but more particuBanks in March 1939. Sections of the official larly in the fact that it can be released more promptly and freely with a minimum of unEnglish text are given herewith: As usually happens when the trade cycle desirable psychological reactions. The experience gained in this matter has is in its downward phase, the balance of our international payments for 1938 closed with taught a lesson which public opinion will not a substantial deficit. It was therefore neces- fail to learn. In spite of the strain imposed sary to make full use of the gold and foreign on them our monetary reserves are still subcurrency holdings of the Exchange Fund stantial. Their usefulness lies in their being which thus fulfilled the specific purpose for employed at the right moment, provided that the causes of the disturbing adverse balance which they were accumulated. This disequilibrium had its origin in the are also attacked at once. Even a cursory study of current events exodus of floating funds half-way through reveals the unmistakable presence, together 1937 and continued later as exports declined with certain factors, of all the same while imports remained at a high level, elements whichnew give their characteristic imthereby causing the deficit in our balance print to the undulating course of Argentine of payments to reach 582,000,000 pesos in economic life. In actual fact there is an 1938. Of this total the official and free ex- unbroken succession of periods of prosperity change markets were responsible for 313,- and depression which have a fundamental 000,000 pesos and 269,000,000 pesos respec- bearing in determining the monetary as well tively.1 as the financial policy of the country. To meet this adverse balance it was necesAlthough it is impossible to say how or in sary to release 461,000,000 pesos in gold and what particular form or at what precise foreign exchange from the Fund, in addition moment the turn in the tide is likely to occur to 121,000,000 pesos, obtained by the Na- after a period of prosperity, the knowledge tional Government from foreign loans. that such a moment will inevitably arrive It was possible to effect the whole of this should be sufficient to advise the timely adopconsiderable transfer of foreign exchange tion of measures tending to moderate the without causing any uneasiness amongst the range of the fluctuation or to palliate its general public who, in Argentina as in other social and economic consequences. countries, are apt to look upon gold exports Notwithstanding the fact that the characwith a degree of apprehension which is just teristic elements referred to above determine as exaggerated as the optimism engendered the course of the trade cycle now as on previby an influx of that metal. ous occasions in both the present and the This result may be considered to have jus- past century, profound have taken tified the practice, adopted at a favorable place in the meantime inchanges the economic strucmoment, of converting foreign exchange of the world, while both the domestic holdings into gold and keeping it earmarked ture and the international policy of the most imin the more important foreign centers rather portant nations has also undergone substanthan bringing it to this country. An excep- tial modifications. cycle continues to tion to this practice was the repatriation of follow its course, butThe vastly different the gold belonging to the Exchange Fund to economic and political under conditions which not NOTE: The report, available in the official English translation only powerfully influence its very intensity published by the Bank, contains in addition sections on profits for the year, administrative niatters, etc., together with statistical and duration but also the nature, range, and tables and charts. For earlier reports, see BULLETIN for August severity of its effects. 1938, September 1937 and July 1936. Quotations in New York of the Argentine peso based on buying Although monetary policy is being comrates for foreign currencies in the official market in Buenos Aires plicated by all these circumstances it is still averaged $0.31135 in December 1938. 1 The latter figure has been arrived at by calculating the rate at 15 pesos to the pound, so as to allow of the resulting total being necessary to base it on cyclical experience. added to the official market figure. Except where otherwise stated, In previous reports we have implicitly recogall figures regarding exchange are shown at the above mentioned nized this fact as, for instance, when we said rate. 1078 FEDERAL RESERVE BULLETIN in the report for 1936 that " in periods when economic activity is on an upward trend an exaggerated optimism frequently breeds the germs of future misfortunes." The country was at that time definitely in the midst of an upward phase and we thought it timely to issue a reminder that such phases "are generally limited in duration" and added that "therefore, the opportunities which they offer for remedying the consequences of past evils and for accumulating reserves for times of stress for which it is wise to be prepared, should not be missed." In the present report we shall again have to discuss monetary policy in the light of these periodically recurring events. It will not therefore be out of place to outline briefly the characteristic features of the Argentine trade cycle and the monetary disturbances which usually take place during its course. Our trade cycle differs from those of the great industrial and creditor nations and the lessons of an experience distinct from our own would be of little use in explaining it. To interpret it aright we must therefore analyze the facts peculiar to our own country and to this purpose the following chapter will be devoted. T H E TRADE CYCLE AND MONETARY POLICY Characteristic features of our trade cycle.— A study of the Argentine trade cycle from the academic standpoint does not, of course, come within the scope of this chapter. We propose to confine ourselves to a brief outline of its working, as reflected in the experience of former times and in the course of events which have come under our own direct observation, and to a recapitulation of precedents which, although already generally known, will enable us to see in better perspective the occurrences dealt with in this report and to set forth clearly the aims of our monetary policy. Argentina being both an agricultural country and a field for the investment of foreign capital, the trend of the oscillations of the trade cycle is determined, on the one hand by the variations in the physical volume and prices of the products of the soil and by the extent to which they are absorbed by the world markets, and on the other, by the greater or lesser inflow of foreign capital. Apart from the varying fortunes of agricultural and pastoral production, which are of course dependent on weather conditions, the DECEMBER 1939 other factors just mentioned are closely linked to foreign cyclical movements which thus reflect on the Argentine trade cycle. The intensity and duration of our cycles depend not only on the individual strength of each of those factors, but also on the time and manner in which they happen to take effect, either exerting pressure jointly or offsetting each other to a greater or lesser extent. The first outward signs of the upward phase make their appearance in the balance of payments. An increase in exports, or larger investments of foreign capital, or both these factors at once, produce a favorable balance which immediately reacts on the internal monetary position. The mechanism of this reaction is extremely simple. As a consequence of the favorable balance the supply of foreign exchange in the market exceeds the demand. The banks purchase the excess exchange and credit or deposit the corresponding amounts in Argentine currency in the sellers' current accounts. In their turn, the banks usually transfer the excess exchange bought from their customers to the Central Bank, which in the same way credits the banks with the equivalent amount and thus creates fresh banking funds,2 while holding the exchange as such, or converted into gold, until the occasion for using it arises. A first conclusion may be drawn from the foregoing, namely that a favorable balance in our international accounts is immediately reflected in a parallel expansion in the available media of payment, through an increase in current account deposits and a similar expansion of bank cash reserves deposited in the Central Bank. The increase in the media of payment is distributed in the first place among those sections of the population that benefit directly from increased exports or from foreign capital investments, and the purchasing power of those sections is consequently enhanced to an equivalent extent. The general demand for goods and services is thereby increased, and imports, which in this country are extremely sensitive to such an expansion, soon feel the resulting stimulus. Media of payment and imports.—In fact, imports tend to follow closely the growth in the volume of media of payment. At first 3 Under the Caja de Conversion system the working was identical except that the banks instead of selling exchange surrendered gold, and the Caja instead of crediting them with the equivalent amount paid them in notes. The effects on the monetary system are exactly the same. DECEMBER 1939 FEDERAL RESERVE BULLETIN 1079 sight this would not seem to be the case, inas- has on the balance of payments. It is a much as only a part of the goods consumed matter of cardinal importance for Argentine are of foreign origin and home industries monetary policy that these consequences supply an increasing proportion of national should be fully recognized. Furthermore, if requirements. However, a closer study of we think over the example given we will be the problem will show our contention to be led to a better appreciation of the diverse well founded. Let us suppose, to take a very positions in which different countries find simple example, that of the total goods and themselves in regard to the oft recommended services required by the population only 20 policy of artificially expanding the volume per cent are imported; let us suppose further of media of payment with a view to encouragthat the increase in the media of payment ing internal economic activity. In countries amounts to 300,000,000 pesos and that the where only a negligible part of the goods conwhole of this sum is spent by its recipients. sumed by the population are imported, the Of this increase in demand, on the basis of disturbing effects of such a policy on the balthe percentage just stated, imports would ance of payments are naturally less serious obtain 60,000,000 pesos while the remaining than in a country like ours where imported 240,000,000 pesos would be satisfied by do- goods supply a very important part of the mestic manufactures and services, which requirements of the population and of inwould thus benefit to that extent by the dustry. expansion in purchasing power. If we sup- As imports increase, due to the close relapose further that of those 240,000,000 pesos 20 which exists between them and the per cent is also expended on foreign articles tionship media of payment, the gold and foreign ex(and the percentage might be altered without change which had previously entered the affecting the final result), imports would be country as a result of the favorable balance further increased by 48,000,000 pesos and an of payments tend toflow again and equivalent volume of media of payment would a corresponding volume ofoutwards media of be thereby eliminated. The residue of 192,- is thereby eliminated. In all this payment 000,000 pesos would go to increase the pur- there are no monetary disturbances process of any chasing power of those whom it now reaches. kind, although the resulting fluctuations in In this way if we continued our analysis we economic activity bring in their train consewould find that in passing from hand to hand of another nature which will be dealt the volume of purchasing power originally quences with below. put into circulation has an ever widening Disturbances caused by credit expansion.— sphere of action. At each stage a portion of The monetary disturbances of a trade cycle the transferred purchasing power is devoted to imports which gradually increase and in really begin when credit expansion creates this way approach a total value approxi- further media of payment in addition to those mately equivalent to the initial 300,000,000 already resulting from a favorable balance of payments. pesos increase in purchasing power. Let us now see how this particular diffiThe example given is, of course, only a culty, which has been so frequent an occurrough outline wherein it has been taken for rence in monetary history, comes about. granted that domestic production of goods When, inour accordance with the procedure deand services is capable of being increased to above, the commercial banks transfer a very considerable extent, as happens when scribed the bank of issue (whether it be the Caja there is serious unemployment. If such ex- to pansion were not possible and the additional de Conversion or the Central Bank) the exThe play of the many variable factors which complicate all demand could not be met by local producers, economic problems alters the numerical ratios in our example. the enhanced purchasing power would flow real If the increased purchasing power goes into savings rather than into expenditure on goods and services, the growth of imports will more quickly and easily into the hands of the be proportionally less. The varying rate at which money circualso affects the working of the process, as also does the inimport trade after changing hands less often, lates crease in the public requirements of currency. In this way the or, in other words, after giving a lesser im- approach of imports to the 300,000,000 pesos mark in the example quoted would be in inverse ratio to the volume of funds withheld petus to internal trade.3 at each stage for such increased currency requirements. On the hand, if the expansion in the media of payment has its We would have omitted this explanation other origin in the investment of foreign capital, there is a corresponding increase in the volume of financial services which have to be had it not, apart from elucidating an impor- remitted abroad, equivalent volume of purchasing power is tant point, furnished us with an opportunity therefore eliminatedan and the growth of imports is diminished in a similar measure. In other similar ways our example could be to stress the effects which a credit expansion further complicated to an infinite degree. 3 1080 FEDERAL RESERVE BULLETIN cess gold or foreign exchange which they have purchased, they increase their available funds to an equivalent extent. Each bank, as is only to be expected, seeks to take advantage of this increase in funds to extend its loan operations, more especially if the ratio of its cash reserves to deposits was previously satisfactory. In this respect, it is a well known and easily explained fact that the banks, through the medium of credit expansion, can create additional deposits in current account two, three, or more times greater— according to circumstances and to the greater or lesser degree of caution exercised by the management—than the total fresh funds which they receive. Be that as it may, the media of payment thus created have exactly the same effects when released on the market as those derived from the inflow of gold and foreign exchange. But, whereas the increased imports originating from the latter can be paid for with that same gold and exchange, imports promoted by the circulating media created by new bank loans have to be paid for out of the gold reserves previously lying in the bank of issue. Here lies the essentially disturbing character of this form of credit expansion. The inflated imports thus upset the equilibrium of the balance of payments and bring about a pressure on the exchange market which increases proportionally to the degree of credit expansion which has taken place. The shortage resulting from the excess of demand over supply of exchange must be covered by the release of gold or foreign exchange from the reserves and if the media of payment, notwithstanding these unmistakable symptoms of inflation, continue to grow due to further credit expansion, the continued dwindling of monetary reserves and the parallel shrinkage in cash reserves at the banks are not long in forcing the country off the gold standard, or to a further currency depreciation if the gold standard has already been abandoned, as has more than once been proved by the grave events which have occurred in our monetary history. This goes to prove the validity in this country also of that ancient principle which lays down that redundant media of payment—those of which we write may well be so described—tend to force monetary reserves out of the country. Depreciation becomes more aggravated as long as there is a growth of current account deposits originating in the grant of larger credits, the effects DECEMBER 1939 of which are fundamentally the same as those following the issue of bank-notes.4 This then is the cause of the monetary difficulties to which our trade cycle is liable and which are apt to degenerate into a severe crisis. These difficulties are not inherent to the course of the cycle, although they very frequently accompany it as a consequence of the natural and spontaneous reaction of the banks when confronted with an increase in their cash reserves. This is, of course, a very summary description in which the process has been simplified as much as possible by eliminating the various peculiarities and complications which have characterized its working in our country. Normal banking credit.—In the foregoing explanation no account was taken of the type of loans granted, volume being the sole criterion adopted. It is a matter of some importance to elucidate this point as credit expansion need not necessarily involve risk or give rise to excessive speculation, as has been not infrequently noted in these inflationary movements. It is quite possible indeed to imagine eminently sound and desirable transactions from the economic point of view which have nevertheless contributed to monetary difficulties, either because the amounts loaned were very large or because they involved an undue immobilization of banking funds. It is therefore imperative that our views on this question should be well defined, inasmuch as they constitute the basis of the recommendations issued by the Central Bank to the commercial banks last year, advising caution in granting new loans and in fixing their date of maturity. In the first place it is essential to distinguish between investment loans, or other operations involving the immobilization of funds, and what might be termed the normal credit requirements of ordinary business. To provide for these latter is the specific function of deposit and discount banks. This type of transaction is of a liquid character, whereas operations of the former class belong to the investment category and can only be liquidated slowly, for which reason they must be kept within prudent limits if monetary soundness is to be preserved. 4 This is not the only cause of currency depreciation. It can also originate in a disequilibrium of the balance of payments brought about by a persistent fall in prices which gradually reduces exports, as well as by the unbalanced position resulting from an expansion of the circulating media. The price factor played a very important part in the late depression although in its early stages credit inflation was the predominant influence. DECEMBER 1939 FEDERAL RESERVE BULLETIN Such normal banking credit presupposes easy liquidation, since its purpose is the prompt sale to the consumer of goods which are produced, imported, and placed on the market with the help of that credit. It also implies the creation of fresh purchasing power by the banks, but only for the relatively short space of time which elapses in the normal course of business between the production or importation of the goods and payment being made for them by the consumer. There is thus at all times a considerable volume of credit which is in process of repayment, after which it is re-applied to new transactions in the ordinary routine of business. The process of production, whether on the farm or in the factory, as well as trade in general, is carried on to a great extent with the help of banking credit, which thus assists in providing that part of the population which depends directly or indirectly on these activities with the purchasing power which it needs in order to continue its consumption of both imported articles and domestic goods or services. The tempo of these activities, and consequently that of the banking loans used for them, is largely determined by the prospects of future sales of the goods dealt in by these producers or traders, and also on the varying foreign demand for those goods. Being thus dependent on future sales, purchasing power created by normal banking credit is necessarily of limited duration except in certain special cases which will be dealt with later. Future sales prospects are the object of innumerable surmises by producers, traders, manufacturers, and bankers, and are consequently affected by the psychological currents of optimism and pessimism which influence the trend of business. Argentina being an agricultural country, such surmises refer mainly to the prospects for agricultural and pastoral products because of their far-reaching effects on the general business situation. In fact, an increase in the value of rural production, apart from its direct influence on imports, not only creates a proportionately greater demand for domestic goods and services by the rural population, but also increases the demand of the producers and sellers of those goods and services, and of those who, in their turn, supply these latter with the articles they consume; and so on indefinitely. Internal business activity is thereby stimu- 1081 lated to a greater extent than it would be by the requirements of the rural population. Conversely, a decline in the value of agricultural and pastoral production becomes accentuated in its depressing effects when reflected on general business activity. Temporary immobilizations of normal credit.—If the trend of rural production, trade, and credit, are so powerfully affected by agricultural and pastoral prospects, it is only natural that in the measure in which results do not come up to expectations, certain characteristic disturbances should frequently make their appearance and call into play the elasticity of a good banking and currency system. It happens in such cases that both imports and local industrial production exceed the real consumptive capacity of the market. Sales are therefore not up to expectations and consequently loans cannot be paid off within the prescribed time limit. Credits therefore become immobilized not because of their nature but by force of circumstances and loaned funds are slow in returning to the banks. In addition, with exports also falling below expectations and imports unduly high, gold and foreign exchange have to be released to cover the deficit in the balance of payments. However, this adverse balance is purely temporary as imports tend to decline of their own accord when the purchasing power originating in rural production diminishes. All these are normal happenings in an agricultural country and the cash holdings of the banks, as well as the monetary reserves of the Central Bank, should be sufficient to face such difficulties without resorting to stringent credit restriction, which in these circumstances would defeat its own ends.5 It is easy to understand that the ability of the banks to withstand these unavoidable credit immobilizations depends on the degree to which they have previously refrained from immobilizing funds in financing or investment operations. The above is an outline of the nature of normal banking credit and of the important function which banks perform through its medium. It is for them a duty, requiring both prudence and ability, to provide business with media of payment adequate to the degree of activity prevailing at any given 5 e We refer, of course, to a general restriction and not to such limitations as it may be desirable to introduce with regard to certain branches of economic activity where a salutary liquidation, destined to correct past errors or excesses, may be deemed necessary. 1082 FEDERAL RESERVE BULLETIN time. Concurrently, it is the duty of the Central Bank to provide the banks with the supplementary resources which they may need to ensure that genuine business dealings are not held up for lack of circulating media. This is one of the main purposes of rediscounting which, by the nature of the need it is intended to satisfy, can only be effected with readily collectible short-term paper corresponding to real and actual transfers of merchandise or, in other words, with paper originating in a producing or a trading operation based on the sale of goods and with the expectation of their proximate consumption. Distinction between credit and savings.— As already stated, a marked distinction must be drawn between the two forms of credit mentioned above. In normal credit operations immobilization of funds and excessive imports are merely incidental risks. On the other hand, in financing operations and longterm investments immobilization is the direct and inevitable consequence of the operations themselves, and the purchasing power launched on the market thereby contributes at once to the over-expansion of imports, inasmuch as these operations are not connected with an immediate sale of goods which depends on the prospects of agricultural production and its export. Furthermore, and in contrast to the course of events in normal credits, no corrective reaction follows. On the contrary, as long as the expansion in financing or investment loans remains unchecked, the growth of imports, and the drain on monetary reserves, will continue. All this is strictly in accordance with the acknowledged principle of liquidity in bank portfolios, a principle which, like many other ancient monetary truths, has been and still is entirely borne out by experience. Financing and investment operations are really contributions of capital which can only be repaid slowly and therefore can only be undertaken with funds accumulated through saving which, when all is said and done, is the only means of building up capital. The roles of bank credit and saving have, it is true, been frequently confused and such confusion is easily understandable in new countries which lack the great mass of savings which their economic development requires. If savings could be replaced by credit this problem would be very easily solved. Whereas the utilization of savings merely signifies a transfer of purchasing power DECEMBER 1939 from those who accumulate them to the borrowers who invest it in their enterprises, bank loans, as already shown, create a fresh volume of purchasing power. If a private enterprise or a public department makes an issue on the market instead of borrowing from the banks and thereafter spends the funds so obtained, no monetary consequences which may affect imports and the balance of payments are entailed. But such consequences would assuredly follow if the securities, instead of being acquired by the public out of their savings, were taken up by the banks. In this case the banks would be creating fresh purchasing power and transferring it to the issuer of the securities. In passing we would mention that this is a factor of considerable practical importance, and was one of the chief reasons for the establishment of the short-term bill market, as explained in the corresponding chapter of this report. However, it must not be forgotten that in this country the banks receive a considerable portion of the savings of the population. Consequently they act not only as creators of purchasing power but also as intermediaries between savings depositors and businessmen wishing to borrow those funds, or in other words as distributing agents for the savings of the public. An important conclusion may be drawn from the above. If the banks embark on financing or investment operations utilizing for such purposes only a prudent percentage of new savings deposits (inasmuch as previous ones are already invested in one form or another) they do not bring fresh purchasing power into being, but only transfer a part of what they have received from the public. In this case, and always provided they make adequate provision to meet such withdrawals as past experience tells them to expect, such financing or investment loans involve no monetary dangers and are exposed only to the risks inseparable from this class of business. But if this limit is exceeded the monetary consequences already described are unavoidable whatever the nature or purpose of the investments, whether they are first class mortgages, advances to finance the development of promising industries, or credits to promote public or private works of an undeniably productive character. In short, it is a dangerous illusion to think that these operations, however praiseworthy FEDERAL RESERVE BULLETIN DECEMBER 1939 they may be, can be carried on beyond the limits referred to by resorting to banking expedients to cover the lack of local capital. The failure to recognize this elementary principle leads inevitably to depleting monetary reserves or to floating foreign loans to counterbalance a deficit in the balance of payments. The trade cycle and monetary disturbances. —A more accurate appraisal of the working of the cycle is now possible. During the upward phase imports, internal industrial activity, and business in general, increase. Prosperity reigns. This is the outcome of the expansion in the circulating media caused by the gold and foreign exchange which enter the country as a result of increased exports and investments of foreign capital. The subsequent expansion in imports tends to disturb the balance of the international payments and this disturbance becomes accentuated at the moment when, inevitably, exTHE ARGENTINE TRADE CYCLE AS REFLECTED IN THE PRINCIPAL ECONOMIC INDICES (Twelve months moving averages) Logantlmk scale 1083 ports fall and the inflow of foreign capital either dwindles or ceases altogether, while foreign financial services increase. The downward phase then begins. The gold and foreign exchange which previously poured in now flows out again, while the drop in purchasing power causes a decline in industrial and business activity and a shrinkage in imports. These events tend to restore the balance and if no credit expansion has taken place no major monetary difficulties need be feared. Nevertheless the problem of the trade cycle is a serious one, since all the economic activities of the nation—as can be clearly seen from the appended chart—are continually subject to these successive periods of expansion and contraction which can be extremely troublesome if the change of trend is both sudden and severe. Government finance also suffers from the same causes, increased revenues and bond issues encourage larger expenditure which cannot be so easily curtailed when the tide turns. If there has been credit expansion the fresh purchasing power which it creates stimulates the upward trend during the boom period, and both internal trade and imports advance more rapidly. If when the downward phase commences, and both6 exports and investments of foreign capital fall, credit expansion continues, either because of its own momentum or of a budget deficit, imports and internal business activity tend at first to maintain their level and later to decrease less than they would otherwise have done. This causes a heavier deficit in the balance of payments and a corresponding outflow of gold and foreign exchange. Monetary disturbances are therefore more or less serious according to the degree of inflation which has taken place. 6 We have not dealt with investments of floating funds from abroad as they are a recent development and did not occur in former cycles. In our previous report we discussed the difficulties which these funds brought in their train. Considerable investments of this kind were made during the upward phase of the present cycle from 1935 onwards and contributed to accentuate it, but when half-way through 1937 there appeared the first signs that the upward phase was coming to an end a considerable volume of floating funds took hurried flight, while the previous inflow of long-term foreign capital investments shrunk more and more. We do not intend to repeat what we wrote in the report for that year concerning the monetary disturbances which these funds caused but shall confine ourselves to summarizing briefly their influence on the course of the cycle. When floating funds enter the country their effect on the monetary system is the same as that so frequently observed in the past with regard to investments of long-term foreign capital, namely, increased imports and utilization of the exchange which had previously come into the country. Later, the floating funds withdraw at the most unexpected moment and entail a further outflow of exchange reserves. In this way floating funds tend to double the demand for exchange: first to pay for the imports which they originate, and, afterwards, to cover their own withdrawal. Far from having the counterbalancing effect that might have been imagined, these movements of funds tend to aggravate the consequences of the cyclical fluctuations. 1084 FEDERAL RESERVE BULLETIN It should be noted, however, that credit expansion is neither necessary nor unavoidable, although, as has so often happened in Argentina, it sometimes occurs spontaneously as an outcome of the increase of bank reserves. It can be prevented by the adoption of timely and cautious measures by the banks and of an adequate policy of monetary absorption by the Central Bank. This will be the subject of the following chapter. The above concludes the review of the typical features of the Argentine trade cycle. They still exert their influence today as they did formerly, but under the sway of the great changes which have taken place in the economic and political structure of the world and which alter the intensity, duration, and complexity of the cyclical fluctuations. These circumstances make new demands on monetary policy, demands which will be more easily met if the factors which affect monetary policy are more clearly understood and its purpose more generally recognized. If this and succeeding chapters help to achieve those ends they will have served their main purpose. MONETARY ABSORPTION AND THE PROBLEM CYCLE 1939 in gold from the Caja de Conversion on commencing operations. The conversion of those holdings into banknotes would, therefore, have doubled the total note issue. To achieve the object outlined above, the Central Bank first resorted to Certificates of Participation in Consolidated Treasury Bonds, then to Treasury Bills specially authorized by the National Government for the purpose, and, finally, created Gold and Foreign Exchange Holding Certificates to supplement the action of the Participation Certificates. The following table gives an idea of the magnitude of these operations. ABSORPTION OF BANKING FUNDS BY THE BANK CENTRAL Volume of funds absorbed End of: Certificates Treasury of Participa- bills issued Gold and tion in Con- for the purForeign solidated chase of Exchange Treasury Gold and Holding Bonds (Real Foreign Certificates value) Exchange 1 OF THE The absorption of banking funds.—In the preceding chapter we have sought to describe certain phenomena of great significance to our monetary policy without attempting to discuss the policy itself. This we have done deliberately so as to avoid confusion between our examination of the facts and the measures suggested for dealing with them. The time for discussing these measures has now arrived, after having established that the source of monetary disturbances in the trade cycle lies in a spontaneous movement towards credit expansion which appears whenever funds derived from a favorable international balance accumulate in the banks. It will be understood therefore that the absorption or sterilization of those funds is one of the principal aims of monetary policy. We shall not repeat what we have written on this subject in former reports. It will suffice to recall that the Central Bank judged it indispensable to carry into effect a policy of absorption in order to preserve the country from the dangers of a plethora of funds. In April 1937 the total gold and foreign exchange holdings reached the huge sum of 1,224,000,000 pesos, by a strange coincidence the very same amount that the Central Bank received DECEMBER Total Cash holdings of the banks 2 (In millions of pesos) 1936 January February __. March April May June July August September.. October November. _ December... 27? 7 242.8 223.2 186.9 323.0 342.9 347.0 311.5 330.0 323.4 347.2 397.0 34.4 67.5 1937 January February. — March April May June July August September.. October November. . December. _. 397.0 397.0 397.0 370.9 365.4 356.2 356.2 364.4 371.1 355.5 331.0 309.1 82.2 93.8 98.0 100.0 94.0 77.0 88.0 93.6 63.6 63.6 63.6 63.6 1938 January February... March April May June July August September.. October November.. December... 300.5 281.3 304.4 266.7 289.0 332.3 306.5 275.3 357.7 352.9 314.4 300.1 63.6 63.6 63.6 63.6 63.6 63.6 63.6 63.6 63.6 63.6 63.6 63.6 75.0 172.5 204.0 248.4 251.8 269.1 283.3 282.6 276.1 249.3 234.6 196.9 . 183.3 183.3 147.8 128.6 86.6 72.8 67.7 12.5 40.0 10.0 272.7 242.8 223.2 186.9 323.0 342.9 347.0 311.5 330.0 323.4 381.6 464.5 739.1 768.7 812.9 829.4 743.5 722.9 690.3 714.0 659.4 747.6 775.8 772.1 479.2 565.8 667.5 674.9 707.8 685.0 713.3 741.3 717.3 695.2 643.9 607.3 793.7 796.4 772.5 829.0 772.9 840.1 829.7 761.9 737.1 780.2 721.5 689.7 561.0 528.2 551.3 478.1 481.2 482.5 442.9 406.6 433.8 416.5 418.0 373.7 709. 2 739.5 701.4 752.8 663.3 651.0 683.4 717.5 682.7 678.7 670.6 630.9 1 The funds obtained from these bills were used in due course for the repatriation of dollar indebtedness. 2 Comprises the principal banking institutions which hold approximately 93 per cent of the reserves and deposits corresponding to institutions governed by the Banking Law. FEDERAL RESERVE BULLETIN DECEMBER 1085 In August 1937 banking funds absorbed by these means reached their maximum level of 741,000,000 pesos, the banks having been provided with this incentive to invest their surplus funds temporarily in these categories of paper. In this way they were not forced to increase their loans and investments in the market unduly. cline in the volume of media of payment caused by the outflow of foreign exchange has been less considerable than it would otherwise have been. This circumstance has undoubtedly assisted in keeping internal trade at a comparatively high level in relation to the heavy fall in exports. But, as is only natural, it has also tended to keep imports at a high level, so much so that, as mentioned LOANS, MEDIA OF PAYMENT AND BANKING FUNDS ABSORBED. in the introduction to this report, this has Millions of pesos been one of the main factors in the disequilibrium of the balance of payments. In view of the trend revealed by imports, the National Government decided to institute prior exchange permits for the importation of all goods paid for through the free market, which goods in 1938 were valued at 335,000,000 pesos.8 This measure, efficiently and flexibly applied, will make it possible to regulate the volume of imports to the country's real capacity to pay, and within limits compatible with the prudent use of monetary reserves. i I i i i i i i i i i i i I t i i i i i i It is reasonable to expect, and indeed it is J. F. M. A. M. J. J. A. S. O. N. D. J. F. M. A. M. J. J. A. S. O. N. D. J. F. M. A. M. J. J A. S. O. N. D. already happening, that the purchasing power which, as a consequence of these measures, The effects of the launching on the market can no longer encourage a disproportionate of those surplus funds can be readily imag- expansion of imports, will be diverted prinined if it is borne in mind that, despite the cipally towards industry, except insofar as considerable amounts which the Central Bank this purchasing power is converted into savwas able to absorb, there was at certain mo- ings and these savings remain unused in the ments considerable competition amongst the banks. As a Consequence, industry, which banks in placing funds. Fortunately it was would otherwise suffer much more severely found possible to ease the situation later, due from the marked decline in exports, as exto the banks cooperating in joint measures plained in the previous chapter, will not only designed to restore competition to its rightful be able to mitigate these effects to an appresphere, as explained in our previous report. ciable extent but in some branches may even During the upward phase of the cycle credit be able to regain the level of prosperous expansion was kept within reasonable limits times. in relation to the volume of surplus banking The far-reaching importance for the nafunds available, as can be seen from the tional economy of these events must, of accompanying chart. course, be recognized as also the desirability But later, as the downward phase developed that they should follow their course under from the middle of 1937 onwards, bank loans the most favorable conditions, taking timely expanded continuously. The normal credit precautions against certain dangers which requirements of business had not really in- are not difficult to discern. creased, the expansion being more the outIn economics, reactions are not infrequently come of the application of the Agrarian Credit observed comparable with those of a living Law, of the advances made to the Grain Regu- organism, whose passing phases of depression lating Board to finance its7 purchases, and of can be alleviated by the use of certain stimugovernment requirements. lants, but only in carefully measured doses Promotion of internal business activity.— and when strictly necessary, so as to prevent By virtue of the above fact, the cyclical de- a dangerous habit being formed. The effect 7 Of the 226,000,000 pesos increase in the net loans and in- of credit on economic life is very similar, it vestments of the banks in 1938, 92,000,000 correspond to the 1936 1937 193S 8 Agrarian Credit Law, 45,000,000 to the Grain Regulating Board, Taking the exchange rates at which the operations were 27,000,000 to government requirements, and the remainder to effected. Calculated at 15 pesos to the pound sterling they come other loans and investments. to 266,000,000 pesos. 1086 FEDERAL RESERVE BULLETIN must only be resorted to when absolutely necessary as an undue expansion would inevitably lead to very serious consequences. The industrial capacity of the country is limited and if purchasing power is created beyond a certain point production could not continue to develop. A rise in prices of both locally manufactured and imported goods would follow with the consequent adverse effect on the cost of living. Once this point at which industry is operating at full capacity has been passed, it would be unwise to encourage its further growth by means of bank loans. Times are not propitious for such an expansion, firstly because it would cause an increase in credit immobilizations, and secondly because it would lead to undesirable over-capitalization, to excessive investments in industrial plant under the fictitious stimulus of a growth of purchasing power which, when it goes back to a normal level, would give rise to serious over-production. Finally, circumstances having confronted us with this emergency, it behooves us to spare no effort to ensure that the beneficial results of alleviating the industrial depression and preventing the spread of unemployment shall entail the least possible dislocation of the subsequent economic development of the country, and more particularly of the monetary system. Absorption of purchasing power.—From everything that has been said in this and the preceding chapter it follows that monetary policy when faced with a trade depression can aim at two different objectives. The first is to prevent credit expansion from accentuating the severity of the cyclical fluctuations and from causing an adverse balance of payments which increases in proportion to the excess of imports. The second objective goes further, it aims not only at preventing the fluctuations from becoming accentuated but at diminishing their range and the extent to which the volume of purchasing power varies during the cycle, in order to moderate the effects of these variations on the volume of internal trade. Naturally, to achieve this latter object it would be necessary to withdraw from the market part of the purchasing power derived from increased exports and from foreign capital investments, sterilizing it until the downward phase of the cycle begins and it should be expedient once again to release it. DECEMBER 1939 This is therefore a real reserve of purchasing power which, like all reserves, is built up during prosperous times for use in adverse conditions. But there is a fundamental difference between a general reserve of this kind and a reserve which a private individual deems it wise to make. Anyone who deposits his savings in a bank or invests them in bonds is building up an individual reserve, but is not contributing to a general reserve for the community, inasmuch as the bank or the issuer of the bonds re-launches that purchasing power on the market by lending or spending the funds thus received. Consequently, the accumulation of a general reserve for the purpose of influencing cyclical fluctuations requires that the purchasing power so accumulated should be neutralized or sterilized, until the moment arrives for setting it free. To render the application of such a policy possible in this country, the establishment of a market for short-term paper is imperative, apart from the possibility of using long-term bonds for this purpose, which will be dealt with later. Due to the absence of a market of this kind, the Central Bank has had to confine itself to placing its absorption Certificates with the banks, and not among the public. In this way it has withdrawn a considerable portion of the surplus banking funds without affecting the volume of deposits in current account or that of currency in the hands of the public, which between them constitute the bulk of the purchasing power of the population. Furthermore, the placing of paper of this kind with the banks has been proved in practice to lack the necessary efficacy, because it is a temporary form of investment which can be quickly liquidated if it is desired to invest the funds in another way. On the contrary, the placing of these Certificates on the market would have the following consequences : the public would draw on their current accounts with the banks to pay the Central Bank which issues the Certificates, and the banks would thereupon transfer the corresponding funds to the Central Bank, which would promptly withdraw them from circulation, as it does at present with the funds derived from subscriptions to Certificates. In this way the funds in question would be definitely withdrawn from the banks, and there would be no possibility of their being utilized for credit expansion as long as the Central Bank pursued its absorption policy. DECEMBER 1939 FEDERAL RESERVE BULLETIN For these reasons the gradual establishment of a market for short-term paper is of great importance from the monetary point of view. It is also important from the financial standpoint as it would allow of the temporary financing of government expenditure when the unevenness of revenue collections is the cause of a shortage of funds, or the moment is not propitious for the issue of long-term bonds. This explains the efforts made during the past financial year to develop a market of this kind through the placing of Treasury Bills by public tender, as will be seen in the following chapter. The absorption policy could also be put into practice by placing long-term bonds with the public and sterilizing the media of payment received against them. The Central Bank, in gradually accumulating bond holdings, which when it completes its fourth year of existence in a few months time will have reached the considerable figure of 50,000,000 pesos, has not failed to envisage this possibility, as will be explained in the corresponding chapter of the report. It is conceivable that, in the future, the Bank may be able to augment the efficacy of its other means of absorbing funds by the sale of these bonds, and by keeping the amounts derived therefrom in reserve for the purpose of reinvesting them and putting the corresponding media of payment back into circulation when it deems such a proceeding advisable. Reduction of cyclical fluctuations.—In short, the absorption of media of payment or purchasing power during the upward phase by means of the placing of paper by the Central Bank, would militate against the expansion of imports, industry, and other local activities, and the gold and foreign exchange which would otherwise be devoted to payment of imports would then accumulate as monetary reserves. When recession sets in, that purchasing power would be again put into circulation by the redemption of the paper at maturity and its withdrawal from the market by the Central Bank. Internal trade would decline less acutely, and so would imports, since the exchange which had been kept in reserve would help to pay for them. Therefore, the absorption of media of payment, and their subsequent return to the market, would reduce the extent of the cyclical fluctuations and at the same time preserve the banks from the dangers of credit expansion. The full development of the market for 1087 short-term paper—a task which can be neither quickly nor easily accomplished—is all that is required for the efficient application of such a policy, as the same means which the Central Bank has used for the absorption of funds could serve this purpose without any substantial change in the financial basis of such operations. The idea of exerting influence on cyclical fluctuations in this fashion, so far as the financial policy of the Government is concerned, has already been the subject of a very interesting study published in the latest Annual Report of the Ministry of Finance.9 In commenting on public works expenditure during the last decade, it is pointed out that the maximum was reached "at the culminating moment of our trade cycle, since the year 1937 may be thus considered. On the contrary, when depression was at its worst between 1931 and 1933 expenditure on public works dropped to its lowest levels. The State with its programme of public works has therefore followed the same trend as the cyclical movements of our economy, thereby accentuating their fluctuations instead of moderating them. It would have been wiser to accumulate reserves in periods of prosperity and spend them during depression. In this way the State would have helped to alleviate the unemployment which occurs in times of crisis. When the economic situation improves industry can absorb by itself the greater part of available labour. If State action were to take this direction the periodic crises could be surmounted without such serious effects on the economic life of the country". There is, therefore, a wide field of action for monetary policy during the trade cycle and valuable experience is already being gained therein. We have thought it desirable to examine it and record the foregoing comments, in which we have sought to avoid all complexities of a technical nature which might prevent a clear understanding and discussion of these problems which are of such far-reaching national importance. In the application of this policy the greatest caution should be exercised, and it should never be forgotten that its aim is not to oppose the natural development of economic forces but rather to moderate the cyclical momentum and thus lessen unfavorable social and economic reactions. 9 Year 1937, Vol. 1, page 41. 1088 FEDERAL RESERVE BULLETIN BOND AND OTHER SECURITY OPERATIONS Absorption of government securities in 1938.—While 1936 was characterized by a wave of optimism, and 1937 by the issue of the considerable volume of bonds that saturated the market, 1938 was a year of consolidation on the Stock Exchange. As shown in the following table, the net volume of Government securities placed during the year amounted to only 135,000,000 pesos as against 550,000,000 and 350,000,000 respectively in the two preceding years. Securities placed Year Securities Net withdrawn absorption (In millions of pe 505) 150.0 500.0 150.0 700.0 115.0 250.0 1936 1937 1938 350.0 550.0 135.0 The serious events of 1937, which were fuHy dealt with in our previous report, made it imperative to proceed with great caution in this matter, restricting issues to what was absolutely indispensable so as to guard against the dangers of another congestion of the market. In this way it was possible to keep quotations at a fairly steady level, the only two important fluctuations which occurred during the year being fortunately of very brief duration, as will be explained below. It is easy to imagine the disastrous effects, both on the market and on the interests of those who invest their savings in bonds, which would have followed a failure to act WEIGHTED AVERAGE MONTHLY SPOT QUOTATIONS OF THE PRINCIPAL NATIONAL BOND ISSUES ON THE BUENOS AIRES STOCK EXCHANGE Credito Argentino Interno Year 1938 % 1934 1935 1936 4% 1936 Foreign Debt Repatriation Loan 4% January February March April May June July August September October November December 100.65 99.66 99.95 100. 33 100. 53 100. 63 100.88 100. 50 99.37 100. 01 100.17 100. 23 (In pesos excluding coupon) 93.14 92.38 92.43 84.37 91.65 91.27 91.22 84.19 91.13 90.59 90.85 83.55 92.20 91.78 91.76 83.75 92.44 91.91 91.80 83.64 92.71 91.93 92.07 83.66 92.97 92.44 92.33 83.71 93.45 92.48 92.51 83.74 91.04 90.48 90.73 81.72 92.07 91.34 91.26 81.90 92.70 92.12 92.13 82.76 92.71 92.14 92.26 83.06 84.44 84.02 83.48 83.62 83.56 83.75 83.72 83.58 81.98 81.93 82.86 83.01 Average forjyear. 100.17 92.37 83.20 1 91.60 91.85 83.31 Including EmprSstito Patriotico 5 per cent, 1st Series. D E C E M B E R 1939 with the prudence which circumstances demanded. It was necessary to recommend repeatedly the postponement or suspension of various proposed issues. To give an idea of the magnitude of these projected issues it will suffice to say that, excluding national securities, at the end of 1938 bond issues awaiting authorization to be put on the market involved the considerable sum of 500,000,000 pesos. The Securities Commission.—In such circumstances the Securities Commission was obliged to participate actively in the work of regulation. As stated in the report for 1937, it was instituted for the purpose of coordinating the various market factors in order to put an end to congestion caused by the excessive volume of bonds, and to establish conditions conducive to the greater stability of the Stock Market. Events have confirmed the necessity of creating this body. The Commission has no compulsive powers. Its function is to study all projected issues submitted to it, either directly or through the Ministry of Finance, and make whatever recommendations it considers advisable in accordance with the state of the market. For this purpose it must have a,t its command the fullest information regarding thefinancialposition and plans of the issuer. The Commission therefore takes no decisions, it merely recommends. In this way it has advised the postponement or suspension of such projected issues as could not be placed because of the limited absorptive capacity of the market, and it has asked the banks to abstain from advancing money on bonds issued in spite of the adverse report of the Commission. Consequently the power of the Commission lies essentially in the moral weight which its recommendations carry in the market and with issuers. And that moral weight can only exist if those recommendations are inspired solely by the public interest and an unwavering sense of fairness. Program of issues for 1938.—By nature of its duties, the Securities Commission has kept in close touch with the National Ministry of Finance. At the suggestion of the latter, a study was made in May last on the basis of which the absorptive capacity of the market for the remainder of the year was estimated at 150,000,000 pesos. This figure, together with the information furnished by the provinces and municipalities, was used as a basis at the meeting called that same month by the DECEMBER 1939 FEDERAL RESERVE BULLETIN 1089 Minister of Finance for the purpose of ex- tions to unjustifiably low levels. These purchanging views on the program of future chases had the desired effect of allowing the issues. The meeting was attended by the Stock Exchange speedily to regain its former members of the Securities Commission and confidence. also by representatives of the Banco de la In addition to sales on the Stock Exchange, Nacion Argentina, of the Banco de la Provin- the Central Bank, as in former years, placed cia de Buenos Aires, and of local financial bonds for account of the Government to the houses. value of 32,000,000 pesos, outside the Stock On that occasion the suggested figure of Exchange with the Pension Boards and va150,000,000 pesos was accepted as a conserva- rious other Government departments. tive estimate for the absorption of govern- Placing of other government securities.— ment securities by the Stock Exchange and Mortgage Bonds placed during the year it was considered advisable to distribute it as amounted to 54,000,000 pesos but as the refollows: National Government issues, 60,- demptions simultaneously effected reached 000,000 pesos; Banco Hipotecario National, 53,700,000 pesos, the net volume of these 50,000,000 pesos, and provincial and munici- bonds placed on the market was insignificant. pal issues, 40,000,000 pesos. These figures This allowed an increase in the sum originally were fixed subject to further revision if mar- allotted to the provinces and municipalities ket conditions made it necessary. from 40,000,000 to 46,000,000 pesos and also Placing of National Bonds.—The placing a slight increase in market sales of national of National Bonds on the market, effected bonds. through the Bank in its capacity as Financial In the total placings for the year there Agent of the National Government, was car- must also be included approximately 40,000,ried out gradually up to the figure mentioned 000 pesos, which is the estimated volume of above. Province of Buenos Aires bonds sold.10 The sales of bonds effected on the market Operations in National Treasury Bills.— were of two categories. On the one hand there In this sphere efforts have been made during were the ordinary bond issues tofinancethe 1938 to establish and develop a short-term public works programme, which amounted to Treasury Bill market. The chief obstacle lay 52,000,000 pesos. On the other, bonds were in the nature of these Bills which, being made sold which had previously been bought by the out to order, could only be transferred by enBank to regulate the market. In respect of dorsement, which proved in practice to be a these latter operations, purchases during the serious drawback to their free circulation. year amounted to 33,000,000 pesos, while In addition, these transactions were subject sales aggregated 47,000,000 pesos, the excess to income tax and stamp duties which also of 14,000,000 pesos being accounted for by hampered the ready negotiation of the Bills. bonds purchased in 1937 and carried forward Both these hindrances were removed by the from that year. At the end of 1938 the National Government with a view to the remaining securities awaiting liquidation speedy realization of the object referred to. as a result of these regulatory operations Bearer bills were instituted by Decree on amounted to 2,700,000 pesos. The excess February 4,1938, and they were subsequently sales added to the ordinary bond issues re- exempted from the above mentioned taxes. ferred to above give a total of 66,000,000 The Central Bank was thus able to announce pesos, which represents the total volume of the new regulations which became effective National Bonds placed on the market during for these bills as from tenders accepted on the year. April 9. The results achieved have been very satisThe regulatory operations just mentioned were effected principally on two occasions, factory taking into account the situation durfirst in February, when the depreciation of ing the year and the fact that a pew developthe peso in the free market was accompanied ment of this kind must necessarily take place by sales of securities chiefly by foreign gradually. The fundamental object pursued holders, and secondly, on the occasion of the in encouraging the establishment of a shortinternational crisis in September, when the term bill market was to induce the financial Central Bank had to intervene very actively houses and the investing public in general to on the Stock Exchange in order to prevent the 10 Apart from this, Province of Buenos Aires Mortgage Bonds company issues were also offered on the market to the value momentary confusion from depressing quota- ofand20,000,000 pesos. 1090 FEDERAL RESERVE BULLETIN DECEMBER 1939 place their funds temporarily in a class of 85,000,000 pesos. Herein lies one of the most security carrying the most absolute guaran- significant results achieved so far by the tee. The country lacked this field of invest- creation of a short-term bill market. ment embodying the characteristics of early Although it is true that from the point of maturity and immediate realization, in which view of the National Treasury there is no investors would be assured that the security difference between funds received from the they had purchased could be realized at any banks and those subscribed by the public, moment. For this it was necessary that the from the monetary standpoint the two situamarket should be as extensive as possible, tions are entirely different, as shown in the both in regard to the number and the financial second chapter of this report. Subscriptions capacity of the investors, so that both buyers by the banks involve the creation of fresh and sellers could always find the means of media of payment, whereas public subscripsatisfying their requirements. All this has tions merely entail a transfer to the National been achieved by the cooperation of the brok- Treasury of media of payment already existing firms which have taken an active share ent. It is unnecessary to repeat the remarks not only in tendering but also in negotiating made in the above mentioned chapter regardbills in the open market. The result of the ing the effects of each of these methods of tenders throughout the year can be followed financing expenditure. It is therefore easy in the table given below: to understand the Central Bank's concern in furthering the development of this tendency, PLACING OF TREASURY BILLS FOR ACCOUNT OF THE without in any way prejudicing the interest NATIONAL GOVERNMENT IN 1938 of the banks which have always been able to find a suitable field for the investment of Average rate of interest on their surplus cash reserves, either in CertifiTreasury Bills amount allotted maturing at approximately: Bills in cates of Participation in Consolidated Bonds Date of circulaissue tion i or in Gold and Foreign Exchange Holding Al30 OfSub90 180 360 Certificates. Further, the development of a fered scribed lotted days days days days days short-term market will open up for the banks (Thou(In thousands of pesos) (Per cent) sands a profitable outlet for their temporary cash ofpesos) 2.25 Jan. 10 20,000 6,900 6,900 2.06 145,100 balances which it will be possible to invest 3,050 2.02 2.25 Feb. 10 25,000 7,050 123,800 in readily realizable short-term bills, as hap2.25 Mar. 10 20,000 9,900 3,900 117,050 2.39 2.50 Apr. 9 20,000 4,600 4,600 109,100 pens" in important financial centers where 2,350 2.13 2.25 2.75 May 10 15,000 3,350 123,950 " 24 25,000 33,700 25,675 2.13 2.33 2.37 2.75 2.88 132, 325 treasury bills are regarded as the most typical 141,050 short-term market security. June 10 10,000 16,550 13, 225 2.13 2.33 2.33 2.75 135,025 " 25 20,000 25,375 13, 825 2.10 2.33 2.38 2.75 7,100 2.10 2.50 2.75 132,125 July 8 18,000 14,925 The 85,000,000 pesos of bills taken up by 138, 200 " 26 15,000 19,750 17,800 2.12 '2.16 2.42 2.75 Aug. 10 20,000 22,400 18,600 2.15 2.28 2.40 2.75 3.00 142, 200 other institutions and by the public in 1938, " 25 25,000 29,400 27, 300 2.11 2.31 2.49 2.75 3.00 143,800 Sept. 10 15,000 24,325 23, 275 2.15 2.35 2.49 2.75 3.00 150, 925 include 12,000,000 pesos subscribed by for136, 250 eign holders through exchange swap opera" 24 25,000 25,300 23,300 2.13 2.35 2.50 2.75 142,125 Oct. 10 25,000 27,425 25, 725 2.12 2.35 2.50 2.75 " 25 25,000 27,050 25, 200 2.06 2.32 2.50 2.75 3.00 143, 925 tions. A very restrictive policy has been 3.00 149,025 Nov. 10 17,500 18,300 16,800 2.08 2.31 2.50 " 25 22,500 19,350 15,850 2.08 2.35 2.50 2." 75 3.00 145, 725 followed in this respect as it has not been 2.93 148, 950 Dec. 10 20,000 22,500 19,750 2.10 2.35 2.50 « 24 25,000 22,055 16, 555 2.13 2.35 2.50 "2~75 3.00 144,755 considered advisable to be burdened with a large volume of short-term commitments For this reason tenders for short1 Including Treasury bills placed without tender and Treasury bills of abroad. Yacimientos Petroliferos Fiscales. term bills have been refused and practically No change has occurred during the year in all the foreign bids accepted have been for the volume of bills in circulation but their maturities at 9 months or a year. A judidistribution has been modified. In effect, of cious contact has thus been established with the 150,000,000 pesos of bills in circulation foreign investors but within extremely pruat the end of 1937, 91,000,000 had been placed dent limits. The total of 145,000,000 pesos of bills outwith the banks and 59,000,000 with other financial institutions and members of the standing on December 31st last, also included public. Whereas, out of the 145,000,000 11,000,000 of the Yacimientos Petroliferos pesos in circulation at the close of 1938, the Fiscales and 64,000,000 used for the repatriaamount held by the banks had declined to tion of foreign indebtedness. The balance, 60,000,000 pesos, that held by other in- 70,000,000 pesos, corresponds therefore to stitutions and by the public had risen to bills for Treasury financing. DECEMBER 1939 1091 FEDERAL RESERVE BULLETIN Participation in consolidated treasury bond and gold and foreign exchange holding certificates.—During the year 1938 the banks have had to resort to the realization of a part of their holdings of Participation in the Consolidated Bonds and Gold and Foreign Ex- OTHER ACTIVITIES OF THE BANK Exchange operations.—The rise of sterling and the price level. The deficit in the balance of payments in both the official and the free exchange markets forced the Central Bank to become an active seller of exchange in order to meet the demand which exceeded supply. During the latter part of January PLACING OF CERTIFICATES OF PARTICIPATION IN CONSOLIDATED BONDS I N 1938 and the beginning of February this situation caused the first depreciation of the peso in Certificates in Rate of interest on Nominal value the free market, when the sterling rate rose amount allotted circulation Date of from 16.99 pesos on January 28 to 19.05 pesos issue of CertifiNomi- Market Mini- Maxi- Aver- on February 4. The continuance of this state OfSubAlnal cates fered scribed l o t t e d i value mum mum age of affairs brought about a further depreciavalue tion in November, when the pound rose from (In thousands of pesos) 18.96 to 20.62. This decline coincided with (%) Jan. 17 70,000 77,000 70,000 301,850 300,502 1.674 2.009 1.906 the National Government's decision to modify Feb. 2 49, 700 42,900 39,800 291,950 290,640 1.739 2.023 1.931 " 17 50,000 53, 650 40,650 282,600 281,336 1.739 2.023 1.789 the official market selling rate raising it from Mar. 2 27,750 39,450 27,750 282,800 281, 525 1.722 1.996 1.913 16 to 17 pesos, in view of the exchange situa120,000 110,000 115,000 305,950 304,435 1.957 1.996 1.992 « 8,350 8,350 301, 550 300,048 2.018 2.018 2.018 tion and of the measures adopted in regard Apr. 2 12,750 " 13 70,000 48,250 36, 500 268,050 266,673 1.992 2.145 2.036 May 2 50,000 39,000 13,000 241, 250 239, 995 1.996 2.113 2.042 to grain prices. a 50,000 53,000 90,000 290,600 289,043 2.035 2.152 2.092 Last year we explained at length how the June 2 40,000 24,300 30,600 293,450 291, 858 2.113 2.191 2.183 21,000 312, 450 310, 761 2.186 2.186 2.186 " 10 deficit in the balance of payments began, and " 17 60,000 34,000 60, 750 313, 200 311,471 2.035 2.230 2.226 21,000 334,200 332, 343 2.218 2.218 2.218 in this report reference has been made in " 24 July 2 50,000 29,450 43,800 316, 650 314,902 2.176 2.295 2.287 " 16 40,000 28,050 28,050 308,200 306,479 2.168 2.284 2.247 other chapters to the various factors which Aug. 2 20,000 10,700 10, 700 305,900 304,182 2.191 2.309 2.282 account for its continuance during the year. " 16 90,000 57,000 57,000 272,900 271, 325 2.245 2.323 2.290 4,000 276,900 275, 302 2.284 2.284 2.284 It only remains now to deplore that such ad" 18 Sept 2 60,000 37, 700 37, 700 263,000 261, 455 2.255 2.374 2.360 36, 350 299,350 297,481 2.356 2.356 2.356 verse circumstances have rendered it impos" 3 " 17 60,000 48,000 90, 300 328, 900 326, 683 2.374 2.374 2.374 sible to maintain a greater degree of stability 24,210 353,110 350, 730 2.388 2.388 2.388 " 23 6,990 360,100 357, 674 2.376 2.376 2.376 in free market rates. " 24 It must be pointed out, 366,000 363, 391 2.361 2.361 2.361 70, 700 23,000 40,000 Oct. 1 u 25,000 20,000 25,000 365, 950 363, 330 2.309 2.387 2.373 however, that notwithstanding its regrettable 10,000 10,900 10,000 354,750 352,197 2.309 2.387 2.366 Nov. 2 repercussions abroad, the depreciation of the 40,000 24, 500 44,500 346, 750 344,212 2.348 2.377 2.375 a 8,800 316, 850 314,493 2.360 2.380 2.371 peso in the free market, as anticipated in our Dec. 2 10,000 13,800 50,000 33,500 33, 500 302, 350 300,082 2.360 2.380 2.377 « 1937 report, has had no great effect on the internal price level because of the type of 1 Including Certificates allotted without tender. the imported goods paid for through that 2 For a term of 90 days approximately. and because they constitute less than change Holding Certificates, to replenish their market, 20 per cent of the total imports. cash reserves in view of the drain caused by VALUE OF GOLD AND GENERAL PRICE LEVEL D¥ ARGENTINA the deficit in the balance of payments and the (Indices, basis 1926 = 100) increase in advances. In this way a substantial decline in cash reserves has been avoided, I - 300 but, on the other hand, placings of these Certificates have undergone an appreciable reduction. Whereas in December 1937 the total value of Certificates of both classes placed by the Central Bank with the other Banks amounted to 545,000,000 pesos, at the same date in 1938 it had fallen to 312,000,000 pesos. The usual table illustrative of the course of operations in Certificates of Participation in Consolidated Treasury Bonds is given above. In the corresponding column the upward tendency of the interest rate, in harmony with I 1,1 1 1I 1 1 1 1 1926 27 28 29 30 31 32 33 34 35 36 37 1938 the changed conditions of the market will be Note: The value of gold currencies and that of the pound sterling from November 1933 onwards noted. has been calculated at the official market selling rate. 2 17 17 17 17 17 Logarithmic scale VALUE OF GOLD CURRENCIES GENERAL WHOLESALE PRICE LEVEL 1092 FEDERAL RESERVE BULLETIN DECEMBER 1939 On the contrary, the appreciation of the to the bills discounted in Zurich and Amsterpound sterling in the official market is apt dam in May for a nominal value of 40,000,000 to produce a rise in the internal price level. Swiss francs and 12,500,000 florins (guilNevertheless, this has not occurred during ders) respectively. The result of these oper1938 due to the fact that the fall in interna- ations is given below: tional prices has been greater than the rise in the pound. In effect, in December 1937 the Average general wholesale price index for Argentina Net proceeds of the Rate of selling rate Yield in Yield in conversion in the free in £ stood at 111.7 (basis: 1926 = 100), whereas foreignloancurrency into £ market in December 1938 it had fallen to 103.0. Wholesale prices have therefore almost re- Swiss francs 39,080,000 21.72 1, 799,172 18.94 34,078,882 Florins 12, 315, 752 8.98 1, 371,080 18.97 26,009,905 turned to their pre-crisis level, a very signifi- Dollars 23,143,750 4.76 4,862, 847 18.97 92, 229, 360 cant fact as it proves that despite the considerable currency depreciation which has taken place during the last decade, prices Bank inspections.—Inspections. The Bank stand today almost at the same level as at the Inspection Department has continued to perbeginning of the period. This is easily ex- form its duties according to plan. In the plained by the great fall in international execution of a program approved in 1938 prices, which in this country has been offset nearly all the important banks and not a few by the simultaneous rise in the value of gold in of the smaller ones have already been interms of Argentine currency, as can be clearly spected. To date 82 inspections have been seen in the accompanying chart (p. 1091). carried out comprising banks which hold 92 Nevertheless it is obvious that, given an per cent of the total deposits. unvarying level of international prices, any In performing this task the Central Bank depreciation in the value of the currency must has acted in the same spirit that has been necessarily affect the internal price level, as explained in previous reports, endeavoring has been repeatedly proved by past ex- to cooperate with the banks in finding a soluperience. tion to any difficulties with which they may Gold exports. Due to the situation referred be confronted. In the case of some instituto above, it was found necessary from July tions whose balance sheets showed losses or onwards to export an appreciable part of the a considerable volume of frozen assets, it has gold imported in 1937 by order of the Na- been necessary to consider methods of mobitional Government. Of this gold, which was lizing those funds and improving the state of valued in the Exchange Fund at 202,000,000 the balance sheet, either by making use of pesos, at the rate of 140.4 shillings per ounce part of the reserves or of the paid up capital, and 15 pesos to the £, only 91,000,000 pesos or by obtaining assistance from the Instituto remained. The cost of shipping the gold Movilizador de Inversiones Bancarias. These worked out at 0.337 per cent of its value, measures have met with every success and including freight, insurance, and other ex- have not given rise to any uneasiness in the penses. At the same time the Central Bank, market. for the reasons mentioned above, was obliged In addition, some special inspections have to dispose of a considerable part of the gold been made in regard to exchange operations. which it held abroad also for account of the The results have, generally speaking, been Exchange Fund. The net amount of gold thus very satisfactory, but it has been noticed that sold reached a total equivalent to £16,231,929. the book-keeping systems used for these oper11s. 5d., or 243,000,000 pesos at the rate given ations sometimes lack clarity. This led to a above. These operations were effected chiefly study of the possibility of working out a simin the London Market. In addition, when the ple uniform book-keeping system which could National Government floated the $25,000,000 be used by banking institutions who might loan in New York, gold to the value of ap- wish to simplify their work and facilitate the proximately $6,000,000, or 19,000,000 pesos declarations which they have to make to the at the same exchange rate, was deposited in Central Bank according to the regulations that market. issued by the Exchange Control Office. Foreign Loans. The Bank took part in the Minimum cash holdings. Compliance with exchange operations originated by the New the regulations regarding minimum cash York loan, as well as in those corresponding holdings has continued to be satisfactory. FEDERAL RESERVE BULLETIN DECEMBER 1939 1093 banking and non-banking, according to the nature of their assets and liabilities and to the ratio of their capital to the funds received from members. The former are required to comply with the Banking Law, while nonbanking cooperatives must take all measures necessary to prevent the public from confusing them with institutions subject to the regulations and control of the Banking Law. To ensure that such measures are taken, the Central Bank is empowered to ask them for information and to inspect them. This Decree has as its main purpose to ensure the untrammelled development of cooperatives which, although receiving funds from their members even if only in limited amounts, devote themselves primarily to activities which are not of a banking character. Subsidiary currency.—To date no change has been made in the subsidiary currency issue which remains at the same total of 212,LIABILITIES, CASH HOLDINGS AND SURPLUS OVER 000,000 pesos at which it stood on May 31, LEGAL MINIMUM DURING 1938 1935, when the Central Bank was established. [Monthly average of daily balances, in thousands of pesos] At that time the Central Bank held 11,000,000 pesos in its own vaults, the remaining 201,C a s h holdings Liabilities 000,000 being in the hands of the banks and Since then the requirements of Difference with re- the pubjic. spect to legal Months circulation have constantly increased, and the minimum Per Sight Term Total Amount cent Central Bank's holdings of subsidiary curSur- Defi- Net rency have diminished to such an extent that plus cit surplus on December 31 last they amounted to only 2,200,000 pesos. This circumstance has made Jan 1, 843, 886 2, 436, 977 4, 280,863 752, 733 17.6 263, 317 603 262, 768 Feb.... 1, 832, 374 2,453,;, 735 4, 286, 286,109 781,625 18.3 292, 740 578 292,162 it imperative to restrict the exchange of subMarch. 1,853,087 2,i; 448, "- 510 4, 301, 17.9 276,488 800 275, 688 April. _ 1, 819, 648 2,!, 520 4! 168 771,832 18.1 285, 772 021 284, 751 sidiary currency for Central Bank notes and May.._ 1, 778, 740 2, U5,483 A,,224, 224', 223 767!\ 493 18.2 288, 641 , 366 287, 275 June.- 1,758,291 2, 442, 537 i,200, 828 702, 331 16.7 226, 705 082 225, 623 to confine these activities to the renewal and July... 1, 724,046 2, ""!,442, 935 4 , 166,981 704,646 16.9 234,346 976 233, 370 exchange of subsidiary currency of the vaAug.... 1, 701,487 2,!, 439,173 4! 140, 660 742,' 5,710 17.9 277,009 1 655 275, 354 Sept... 1, 728, 572 2,423^ !, 423, 729 4 152, 301 748, ' 823 18.0 279, 963 588 278, 375 rious denominations. 1,719,484 2, 412, " ' - 745 4! 132, 229 719, 258 17.4 252, 875 729 251, 146 Oct The Law allows for an increase in the issue "!, 399, 616 4' 115, 528 713, 670 17.2 248, 874 706 247,168 Nov. _. 1, 715, 912 2, Dec-.. 1, 729, 270 2,!, 384,110 4!, 113, 380 711,663 17.3 245, 689 426 244, 263 of this class of currency by the National GovAve— 1, 767,066 2,431, 589 4,198, 655 402 17.6 264,373 1,211 263,162 ernment at the request of the Central Bank, always provided that the total does not exceed Statistical summary. The regular publica- 20 pesos per inhabitant. The Bank has not tion of the Statistical summary of the state considered it desirable to make such a request of the banks called for by the Banking Law without first ascertaining whether the greater was commenced in February last in accord- demand for this currency, especially in 1938, ance with forms drawn up by the Central is due to temporary factors or to a natural growth in circulation requirements. The exBank. Cooperative societies. A careful study of perience of the present moment may well the working of cooperative societies led to the show definitely which of these two alternative conclusion that, generally speaking, the funds causes is responsible. which they receive cannot be considered as The want of one and two centavo coins has bank deposits. Once the Central Bank had again been felt during 1938. The continual studied this matter, the Executive Power is- applications made by Government departsued Decree No. 15,130 on October 21 last, ments, as well as the frequent requests from which divides cooperatives into two classes, industrial and commercial concerns which re- The holdings of the banks as a whole remain appreciably above the minimum required by law, although excess holdings, due to reasons mentioned elsewhere, have declined during the year. Deficits have also been comparatively small as is shown in the table which follows. These deficits, as in the previous year, have occurred in institutions of minor importance which in most cases are undergoing reorganization. Exercising the powers vested in it under the Banking Law, the Central Bank has refused to authorize the payment of dividends by establishments which have not kept their holdings regularly up to the legal minimum. The same step was taken in the case of institutions in which inspection had disclosed the existence of losses which it was desirable to write off by applying profits to that purpose. 449, '40, 1094 FEDERAL RESERVE BULLETIN DECEMBER 1939 quire such coins for their payments, cannot During 1938 the Bank granted the adbe satisfactorily met because of the very small vances requested by the Government, which number of these coins in existence. fluctuated between 10,000,000 and 70,000,000 Temporary advances to National Govern- pesos. The largest sum outstanding at any ment.—By Art. 44 of Law 12,155 the Bank one moment was 68,000,000 pesos. is authorized to make advances to the Na- These advances were used by the National tional Government for the purpose of cover- Government chiefly at the beginning and end ing temporary insufficiency in revenue collec- of each month. They decreased appreciably tions, up to a limit of 10 per cent of the aver- in the middle of each month and remained age cash revenue collected by the Government completely unused for periods of from 8 to in the three preceding years. 22 days in January, February, May, July, The average for the years 1935-37 was August, and November. In June no advances 904,000,000 pesos, the maximum advance al- at all were requested. lowable this year therefore amounting to On December 31 the balance outstanding of this account was 50,000,000 pesos. 90,000,000 pesos. BALANCE SHEET OF THE CENTRAL BANK OF THE ARGENTINE REPUBLIC AS OF DECEMBER 31, 1938 AND 1937 [In thousands of pesos] Assets Gold at home Gold at home, extension of Exchange FundGold abroad and foreign exchange Foreign exchange bought forward Subsidiary currency Shareholding banks, shares subscription accounts Non-interest bearing Government bonds.__ Consolidated Treasury bonds National securities, Article 34, Law 12, 155.. Bank premises Temporary advances to National Government, Art. 44, Law 12, 155 Other assets Total assets.. Dec. 31, 1938 1, 224, 418 71, 351 18, 384 2,198 118,884 396, 909 28, 939 0) D e c . 31, 1937 Liabilities 1, 224, 418 129,109 68,196 Notes in circulation B ank deposits National Government deposits Other deposits Foreign exchange sold forward Capital General reserve fund Special reserve for contingencies Contingency and enlargement of premises reserve Certificates of participation in Consolidated Treasury bonds Bank premises amortization account Profit and loss account Other liabilities 2,477 15 118, 884 397, 970 23, 701 970 50, 255 5,603 17,092 2,510 1, 916, 941 1, 985,340 Total liabilities. 1 Entered at the nominal figure of 1 peso. Dec. 31, 1938 1,117,957 320, 584 109, 706 914 18, 384 20,000 4,558 1,500 2,500 Dec. 31, 1937 1,149,751 355, 394 125,019 4,927 20,000 2,586 1,500 600 302, 350 5,184 13, 304 310, 500 970 7,386 6,707 1,916,941 1, 985,340 FINANCIAL, INDUSTRIAL, AND COMMERCIAL STATISTICS UNITED STATES 1095 1096 FEDERAL RESERVE BULLETIN DECEMBER 1939 MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS [In millions of dollars] Reserve bank credit outstanding Date Bills Bills disbought counted End of month figures: 1938—Oct. 31 Nov. 30 Dec. 31 1939—Jan. 31 Feb. 28 Mar. 31__._ Apr. 30 May 31 June 30 July 31 Aug. 3 1 . . . . Sept. 30 Oct. 31 Wednesday figures: 1938—Dec. 7 Dec. 14 Dec. 21 Dec. 28 1939—Jan. 4 Jan. 11 Jan.18 Jan. 25 U. S. GovOther ernReserve ment bank securi- credit i ties Gold stock Treasury currency outstanding Total Money Treasury in circash culaholdtion ings Member bank Treasury Other reserve balances NonFeddeposits memeral with Federal ber de- Reserve Excess posits acReserve (esticounts Total banks mated) 7 7 4 5 4 4 3 4 5 5 5 6 6 2,564 2,564 2,564 2,564 2,564 2,564 2,571 2,564 2,551 2,488 2,426 2,804 2,736 14 13 33 28 30 18 20 4 23 -8 14 68 59 2,586 2,584 2,601 2,607 2,598 2,587 2,595 2,573 2,579 2,486 2,446 2,879 2,801 14,065 14, 312 14, 512 14, 682 14,874 15, 258 15, 791 15,957 16,110 16, 238 16, 646 16,932 17,091 2,751 2,773 2,798 2,816 2,824 2,839 2,849 2,862 2,881 2,895 2,907 2,919 2,932 6,700 6,787 6,856 6,653 6,731 6,817 6,905 6,967 7,047 7,049 7,171 7,293 7,342 2,770 2,689 2,706 2,776 2,740 2,691 2,699 2,636 2,563 2,360 2,325 2,244 2,254 535 484 923 747 1,148 1,229 931 920 944 752 708 545 286 424 574 441 458 488 533 545 586 739 693 622 753 728 260 259 260 255 254 257 255 253 258 257 255 240 241 8,713 8,876 8,724 9,215 8,936 9,157 9,900 10,029 10,018 10, 507 10, 918 11,655 11,973 3,227 3,383 3,205 3,644 3,387 3,559 4,098 4,218 4,140 4,553 4,758 5,352 5,553 6 7 8 7 1 2,564 2,564 2,564 2,564 20 29 84 39 2,591 2,600 2,656 2,610 14, 367 14,380 14,454 14, 508 2 775 2,784 2,788 2,790 6,844 6,858 6,943 6,912 2,681 2,651 2,677 2,707 407 413 1,025 941 576 551 514 505 258 258 267 265 8,966 9,034 8,472 8,577 3,442 3,476 2,979 3,072 4 5 4 5 1 1 1 1 2,564 2,564 2,564 2,564 35 23 18 14 2,604 2,592 2,588 2,583 14, 14, 14, 14, 565 577 615 640 2,800 2,805 2,810 2,812 6,839 6,716 5,666 6,623 2,725 2,712 2,726 2,754 891 873 800 767 436 459 435 470 258 258 256 256 8,819 8,956 9,130 9,166 3,298 3,436 3,559 3,597 Feb. Feb. Feb. Feb. 1 8 15..21 5 7 5 4 1 1 1 1 2,564 2,564 2,564 2,564 13 12 17 23 2,582 2,584 2,587 2,592 14, 14, 14, 14, 694 732 772 818 2,817 2,818 2,819 2,821 6,663 6,673 6,695 6,708 2,770 2,768 2,771 2,752 887 931 1,250 1,181 469 488 500 495 256 255 254 254 9,047 9,018 8,707 8,841 3,478 3, 459 3,166 3,298 Mar. Mar. Mar. Mar. Mar. 1 8 15 22 ___ 29— 4 3 3 3 3 1 1 1 1 1 2,564 2,564 2,564 2,564 2,564 19 -3 27 5 10 2,586 2,565 2,595 2,573 2,578 14,888 14, 923 14, 983 15,075 15,160 2,827 2,829 2,832 2,834 2,837 6,739 6,751 6,751 6,758 6,765 2,716 2,716 2,712 2,743 2,722 1,168 1,102 1,059 1,222 1,201 484 510 552 511 505 253 253 259 258 257 8,942 8,985 9,077 8,989 9,125 3, 382 3,407 3,443 3,364 3,519 Apr. Apr. Apr. Apr. 5 12 19 26..__ 3 3 3 3 1 1 1 1 2,564 2,564 2,564 2,564 17 17 23 12 2,584 2,584 2,591 2,580 15, 15, 15, 15, 292 430 605 714 2,838 2,842 2,844 2,849 6,855 6,835 6,858 6,860 2,712 2,707 2,723 2,693 1,103 1,015 951 913 470 515 509 516 257 256 256 256 9,318 9,528 9,743 9,903 3,708 3,879 3,998 4,124 May May May May May 3 10 17 24 31 3 4 4 4 4 1 1 1 1 1 2,564 2,564 2,564 2,564 2,564 4 7 8 8 4 2,572 2,575 2,576 2,576 2,573 15, 801 15,856 15,892 15, 927 15, 957 2,851 2,854 2,857 2,859 2,862 6,915 6,904 6,913 6,893 6,967 2,691 2,678 2,683 2,646 2,636 936 959 927 915 920 554 521 543 558 586 255 255 255 254 253 9,872 9,967 10,005 10,097 10,029 4,084 4,186 4,244 4,304 4,218 June June June June 7 14 21 28 3 3 5 5 1 1 1 1 2,564 2,564 2,564 2,551 8 37 15 10 2,576 2,605 2,584 2,567 15, 987 16,027 16,060 16, 093 2,864 2,868 2,873 2,879 6,986 6,936 6,934 6,962 2,571 2,570 2,566 2,559 935 928 941 962 630 714 714 677 253 253 263 263 10,053 10,101 10,099 10,116 4,279 4,264 4,227 4,243 July July July July 5 12 19 26 5 5 5 5 1 1 1 1 2,551 2,535 2,515 2,488 13 28 17 19 2,569 2,569 2,537 2,512 16,136 16,174 16,191 16, 227 2,880 2,885 2,890 2,893 7,100 7,041 7,022 7,002 2,577 2,552 2,530 2,506 820 791 764 742 678 638 634 690 257 257 257 257 10,151 10, 350 10, 412 10,436 4,292 4,447 4,485 4,485 Aug. Aug. Aug. Aug. Aug. 2 9 16 23.... 30 5 5 5 5 6 1 1 1 1 1 2,453 2,443 2, 423 2,423 2,426 18 14 25 13 15 2,476 2,462 2,453 2,441 2,448 16, 16, 16, 16, 16, 248 270 335 501 638 2,895 2,897 2,900 2,903 2,905 7,054 7,070 7,091 7,098 7,141 2,370 2,354 2,366 2,334 2,327 863 844 776 724 709 662 597 565 604 608 257 256 256 256 255 10,413 10, 509 10,633 10,829 10,951 4,462 4,533 4,590 4,741 4,799 Sept. Sept. Sept. Sept. 6 13 20— 27 6 7 6 6 1 1 1 1 2,594 2,824 2,826 2,804 42 42 50 36 2,643 2,873 2,883 2,846 16, 726 16,808 16, 902 16, 925 2,908 2,911 2,915 2,914 7,261 7,235 7,236 7,238 2,264 2,227 2,272 2,260 676 615 619 552 688 755 781 771 247 234 242 242 11,141 11, 526 11, 549 11, 621 4,969 5,271 5,275 5,332 Oct. 4 Oct. 11_____ Oct. 18 Oct. 25 Nov. 1 . Nov. 8 Nov. 1 5 . . . 7 7 6 6 6 6 6 1 1 1 2,785 2,765 2,748 2,736 2,721 2,687 2,649 45 38 63 30 38 28 60 2,837 2,810 2,817 2,771 2,765 2,721 2,715 16, 958 16,973 16, 997 17,039 17,099 17,132 17, 235 2,920 2,924 2,927 2,929 2,932 2,935 2,939 7,309 7,346 7,330 7,302 7,352 7,409 7,384 2,250 2,238 2,216 2,230 2,250 2,263 2,341 469 404 349 326 349 348 564 776 742 698 692 790 779 772 239 238 241 240 241 241 241 11,672 11, 739 11,907 11,950 11,814 11, 749 11, 587 5,359 5,399 5,509 5, 534 5,376 5, 354 5,166 * Includes industrial advances. NOTE.—For description of figures in this table and discussion of their significance, see BULLETIN for July 1935, pp. 419-429. Reprints of article together with all available back figures, may be obtained upon request from Division of Research and Statistics. Back figures are also shown in Annual Report for 1937 (tables 3 and 4) and for excess reserves in BULLETIN for August 1935, pp. 499-500. Averages of daily figures for recent months and years are shown in the table on p. 1053. 1097 FEDERAL RESERVE BULLETIN DECEMBER 1939 PRINCIPAL ASSETS AND LIABILITIES OF ALL FEDERAL RESERVE BANKS [In thousands of dollars] Wednesday figures E n d of m o n t h 1939 N o v . 15 Nov. 8 Nov. 1 1939 Oct. 25 Oct. 18 Oct. 11 Oct. Oct. 4 1938 Sept. Oct. ASSETS Gold certificates on hand and due from 14,866, 654 14,858,210 14,839, 206 14, 804, 210 14, 769, 206 14, 725, 715 14, 696, 217 14, 829, 206 14, 671, 720 11, 262, 700 U. S. Treasury 9,005 10, 253 9,139 8,926 9,777 8,987 8,846 8,813 7,344 Redemption fund—F. R. notes 315,194 323, 888 344, 281 332, 383 325,153 339, 670 353, 716 334, 273 367,842 Other cash Total reserves. Bills discounted: For member banks For nonmember banks, e t c . Total bills discounted. 15,230,623 15,191,237 15,187,920 15,157,417 15,111,366 15,049, 896 15,030, 375 15,177, 722 15,013,337 11,639,355 3,176 3,309 3,166 3,309 2,939 3,309 2,442 3,309 2,314 3,309 3,205 3,309 3,440 3, 2,848 3,309 2,925 3,309 7,401 6,485 6,475 6,248 5,751 5,623 6, 514 6,749 6,157 6,234 7,401 415 498 548 548 541 11,561 11, 623 11,763 11, 787 11,803 11,841 11, 744 11, 972 15, 264 Bills bought: Payable in foreign currencies. Industrial advances U. S. Government securities, direct and guaranteed: Bonds Notes . Bills 1,305,442 1, 313, 942 1, 315, 942 1, 315, 942 1, 315, 942 1,315,942 1, 315,942 1, 315, 942 1, 315,942 787,327 1,239,172 1, 247,497 1, 245, 497 1, 245, 497 1, 245, 497 1, 245, 497 1, 245, 497 1, 245, 497 1, 245,497 1,164, 565 174, 320 186, 820 612,123 104,705 125, 380 159, 380 203, 457 223,457 174, 320 242, 370 Total U. S. Government securities, direct and guaranteed Other Reserve bank credit 2, 649, 319 2, 686,819 2, 720, 819 2, 735, 759 2, 748, 259 2, 764, 896 2, 784,896 2, 735, 759 16,104 50, 634 26, 241 33,207 47, 950 25, 996 18, 216 47, 361 Total Reserve bank credit outstanding 11,6 2,715,315 2, 721,021 2, 764, 743 2, 771, 4 55,965 2, 564,015 -1,367 2, 837, 241 2, 801,021 2,878, 528 2, 585, 854 2, 816, 718 LIABILITIES F. R. notes in actual circulation. 4,805, 254 4,817,094 4, 781,385 4, 743, 717 4, 756,457 4, 757,812 4, 732,133 4, 772,822 4, 719, 776 4,315,142 Deposits: Member bank—reserve account... 11, 587,156 11, 748, 66011,813, 664 11, 950,44611,906,847 11, 739,156 11, 671, 66411,972, 848 11,655,397 8, 713,092 326,003 349,137 403, 535 469,127 286, 371 544, 548 535, 277 564,123 347,622 349,030 U. S. Treasurer—general account.. 454, 277 456, 231 470, 881 418, 898 414, 705 444, 207 466,137 415, 699 447,873 204, 063 Foreign bank 319, 449 272, 874 283, 540 297, 400 309, 403 312, 658 304,969 219, 612 317, 728 322,911 Other deposits Total deposits. Ratio of total reserves to deposit and F. R. note liabilities combined (per cent) 12,923,284 12,875,424 12,953,024 12,968, 221 12, 954, 229 12, 884, 298 12, 916, 331 12, 987, 576 12,952, 787 9,672,044 85.9 85.9 85.6 85.6 85.3 85.3 85.2 85.5 83.2 85.0 MATURITY DISTRIBUTION OF BILLS AND U. S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS [In thousands of dollars] Bills discounted: Oct. 25 Nov. 1 Nov. 8 Nov. 15 Industrial advances: Oct. 25 _ Nov. 1 Nov. 8 Nov. 15 . U. S. Government securities, direct and guaranteed: Oct. 25 ___ Nov. 1 Nov. 8 Nov. 15 91 days 6 m o n t h s 1 year to to 1 year 2 years Within 15 days 16 to 30 days 31 to 60 days 61 to 90 days to 6 months 5,751 6,248 6,475 6,485 1,385 1,404 1,594 1,486 125 515 315 3,546 3,609 3,578 3,361 278 207 130 393 189 317 576 753 912 108 45 59 74 11, 763 11,680 11, 623 11, 561 1,442 1,585 1,577 1,467 343 98 73 357 408 891 1,245 1,011 1,115 700 436 476 1,040 1,051 1,040 944 2,104 2,089 2,032 2,114 2,952 2,961 2,930 2,956 48,675 69, 280 76, 705 35,425 182, 453 35, 425 138, 783 138, 783 136,783 136, 783 347, 365 348,829 348, 828 345, 254 Total 2, 735, 759 2, 720,819 2, 686, 819 2,649, 319 48, 54, 48, 69, 940 675 675 280 161, 161, 161, 161, 705 705 705 705 2 years to 5 years Over 5 years 2,359 2,305 2,290 2,236 589, 693, 695, 690, 282 567 567 567 1, 1, 1, 1, 218, 218, 218, 210, 556 555 556 305 1098 FEDERAL RESERVE BULLETIN DECEMBER 1939 STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS, BY WEEKS [In thousands of dollars] Total Boston New York Philadelphia Min- KanSan Cleve- Rich- At- Chicago St. neapsas Dallas FranLouis olis City land mond lanta cisco ASSETS Gold certificates on hand and due from U . S . Treasury: Oct. 25 Nov. 1 Nov. 8 Nov. 15 Redemption fund — Federal Reserve notes: Oct. 2 5 . . . . Nov. 1 Nov. 8 Nov. 15 Other cash: Oct. 25 Nov. 1 Nov. 8 Nov. 15__. Total reserves: Oct. 25 Nov. 1 Nov. 8. Nov. 15 Bills discounted: Secured by U. S. Government obligations, direct and guaranteed: Oct. 25 Nov. 1 Nov. 8 Nov. 15 Other bills discounted: Oct. 25 Nov. 1 Nov. 8 Nov. 15 Total bills discounted: Oct. 25 Nov. 1 Nov. 8 Nov. 15 Industrial advances: Oct. 25 Nov. 1 Nov. 8 Nov. 15 U. S. Government securities, direct and guaranteed: Bonds: Oct. 25 Nov. 1 Nov. 8 Nov. 15 Notes: Oct. 25 Nov. 1 Nov. 8 Nov. 15 Bills: Oct. 25 Nov. 1 Nov. 8... Nov. 15 Total U. S. Government securities, direct and guaranteed: Oct. 25 Nov. 1 Nov. 8 Nov. 15 14, 804, 210 14,839, 206 14, 858, 210 14,866, 654 8,926 8,846 9,139 10, 253 344,281 339, 868 323,888 353, 716 15,157, 417 15,187, 920 15,191, 237 15, 230, 623 993 1,180 1,091 1,089 853,152 7, ', 124, 328 731, 589 855, 218 7,084, 774 752,121 850,142 ,142 6, \ 998, 030 788, 293 841,, 580 \, 6, 971,039 795, 848 1,116 1,116 1,074 1,061 1,345 1, 345 1,197 1,155 29,184 90, 041 29, 691 84, 374 29, 680 81,613 30, 789 87, 524 883, 452 7, 215, 714 886,,025 7', 170, 493 880.), 896 '7, , 080, 840 873, 430 7\ ', 059, 718 100 85 75 4,758 5,068 5,384 5,: 454 383 1,383 1,308 i, 036 247, 764 336,867215, 654 883, 761 379, 274 268. 600 2, 499, 949 410, 1,151 2,511,503 412, !, 228 246,089 335, 535 215,142 918, 407 384, 272 273, 914, 681 389, 310 281, 370 2, 528, 284425, 732 248, 255 335,007226, 778 928,083 390, 834 278,465 2, 539,001 425, 209 246, 505 340, 518238,132 575 536 575 536 256 480 1,000, 1,237 348 348 322 294 968 905 838 17, 537 18, 420 18,123 20, 808 46, 370 42, 598 43,054 43, 341 840 840 825 816 552 552 539 517 853, 236 850, 766 872,328 871, 440 415 406 406 389 1,450 1,450 1,431 1,397 17, 570 16,911 16, 288 17, 332 761, 691 906, 545 400, 349 286,485 2, 547, 287425, 237 257,018 355, 790233,639 2, 555, 555, 069 427, 583 255, 251 355,336 232,459 782, 481 941, 059 407, 759 291, 919 !, I, 670243, 472 817,098 935,807 410,161 299, 815 2, 572, 243 439, 978 258, 514 353i 1,121 255, 853 827,130 952, 870 417, 333 299, 567 2, 583,180 441, 525 256,039 360, 29, 524 30, 270 24, 984 31,020 29,648 29, 977 27, 422 29, 974 22, 248 22,116 20,646 23, 787 20, 500 22, 912 20, 595 25, 262 327 327 321 241 14, 361 8,927 18, 371 14, 515 8,835 19, 249 13,421 9,938 18,124 15, 500 19,086 313 275 249 309 63 55 30 60 138 173 168 143 110 120 81 71 10 90 65 65 145 108 74 101 60 60 75 75 30 100 135 90 1,474 1,525 1^500 321 321 321 321 478 491 477 503 342 362 362 327 136 141 170 167 417 417 433 430 146 146 156 156 147 141 147 159 884, 210 882, 486 898, 743 903, 857 66 4 4 19 4 55 30 50 30 1,124 1,321 1,471 112 101 98 98 301 299 291 264 5,751 6,248 6,475 6,485 100 85 75 1,787 1,800 1,857 1,809 384 376 351 381 616 664 645 646 452 482 443 398 146 231 235 232 562 525 507 531 206 206 231 231 177 241 282 249 949 1,189 1,381 1,537 116 105 117 102 356 329 341 294 11,763 11,680 11, 623 11, 561 1,571 1,520 1,501 1,422 1,998 1,983 1,984 1,974 3,136 3,144 3,145 3,153 339 338 337 332 1,016 1,013 1,003 1,007 644 678 445 444 444 444 7 7 7 7 828 818 812 810 200 162 161 185 522 518 512 510 1,057 1,055 1,054 1,054 1, 315, 942 1, 315, 942 1, 313, 942 1,305,442 95,178 95,198 95,100 94, 538 416, 676 113,124 416, 243 113,099 414, 607 112,869 410, 798 112,074 136, 950 136,970 136,807 135, 974 107, 646 107,675 107, 570 106, 943 1, 245,497 1, 245, 497 1, 247,497 1, 239,172 90, 084 90,103 90, 291 89, 738 394, 370 393, 960 393, 642 389, 944 107,068 107,045 107,163 106, 387 52, 347 143, 664 44,078 35,051 57,790 46,908 52, 392 143, 719 44.106 35,087 57,879 46, 951 52,417 143, 630 35,119 57,998 46, 979 52,196 142, 845 44.107 34, 986 57,854 46, 786 43,897 49, 545 135, 972 41, 716 33,174 54,697 44,397 129, 619 129, 638 63,058 49,588 136,025 41, 744 33,209 54,781 44,438 129, 889 63,365 49, 765 136, 366 41,875 33,342 55,065 44, 603 129,071 63,172 49, 545 135, 593 41, 667 33, 211 54,919 44,412 174, 320 159, 380 125, 380 104, 705 12, 608 11, 530 9,075 7,583 55,196 50, 413 39, 563 32, 949 14,985 13, 698 10,770 6,214 5,686 4,483 3,752 14,260 13,041 10, 265 8,578 2, 735, 759 2, 720,819 2, 686, 819 2, 649, 319 197, 870 196,831 194,466 191, 859 866, 242 860,616 847, 812 833, 691 235,177 233, 842 230, 802 227, 450 72,868 120,142 97, 519 72, 546 119,670 97,075 71, 812 118, 597 96,065 71,003 117,413 94,950 223, 792 222,624 219, 966 217,034 66, 530 66, 623 66,739 66, 551 18,142 8,813 16, 589 13,055 6,368 10,906 5,338 6,934 6,345 5,002 4,186 284,711 138,312 108,826 283,197 137, 750* 108, 325 279, 751 136, 472 107,184 275, 951 135,061 105, 927 19,031 17, 407 13, 705 11,457 5,839 5,342 4,209 3,521 298, 667 297,151 293, 701 289,895 91, 633 91,192 90,191 89,085 4,643 4,250 3,351 2,806 7,655 7,010 5,534 4,640 101,886 101,908 102,131 101, 513 DECEMBER 1099 FEDERAL RESERVE BULLETIN 1939 STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS, BY WEEKS—Continued [In thousands of dollars] Min- KanCleve- Rich- At- Chicago St. neapsas Dallas Louis olis City land mond lanta New York Philadelphia 199,441 198, 451 196, 052 193, 356 870,027 864, 399 851, 653 837,474 139, 780 109,616 238, 697 237, 362 284,199 139, 245 109, 234 234, 298 280, 733 137, 918 108, 082 230, 984 276, 929 136, 466 106, 822 47 4 47 4' 3 3 3 3 18 18 18 18 5 5 5 5 4 4 4 4 2 2 2 2 2 2 2 2 23, 385 22,133 20, 844 23, 216 553 576 688 592 4,746 4, 236 3,306 4,253 943 895 670 1,218 1,401 1,851 1,546 1,506 2,702 2,884 3T" 2,168 I,1,745 1,502 2,603 2,999 2,228 2,481 1,640 1,427 1,974 1,865 662, 257 716,496 578,163 964,81' 66,123 77, 684 59,100 98,421 167, 343 175,119 116,931 244,816 48, 775 72,080 47, 739 87,404 37, 844 64, 648 70, 797 117,076 56, 963 61, 507 53, 541 79, 988 25, 217 27, 658 25, 657 34,519 90, 983 91,065 86, 379 138, 467 30, 287 30,545 29, 054 41, 227 42,108 42,037 42,037 42,035 2, 903 2, 5,894 5,894 2, 564 2,557 2,557 2,557 2,040 2,041 2,041 2,041 3,880 3,871 3,871 3,871 69, 436 69,492 70,073 70, 581 4,534 4,536 4,572 4,605 4,081 4,078 4.125 4,151 2,923 2,930 6,928 6,991 6,988 7,056 Total Boston San Francisco ASSETS—Continued Total bills and securities: Oct. 25 Nov. 1 Nov. 8 . Nov. 15 D u e from foreign banks: Oct. 25 Nov. 1 Nov8 Nov. 15 Federal Reserve notes of other banks: Oct. 25 Nov. 1 Nov. 8 . Nov. 15 Uncollected items: Oct. 25___ Nov. 1 Nov. 8 Nov. 15 Bank premises: Oct. 25 Nov. 1 Nov. 8___. Nov. 15 Other assets: Oct. 25 Nov. 1 Nov. 8 Nov. 15 Total assets: Oct. 25 Nov. 1 _.. Nov. 8 . Nov. 15 2, 753, 273 2, 738, 747 2, 704, 917 2, 667, 365 4, 4,594 4,594 4,594 22, 252 22,193 22, 392 22, 568 1,008 18, 707, 923 1,157,009 8, 289, 18, 776,872 1,170, 245, 346 18,607,318 1,144, 084, 028 1,173,305 8,177.',735 6,027 5,998 6,044 5,r' 5,894 7,644 7,652 7,736 7,766 2^ 976 299, 674 298,120 294, 652 290, 870 91, 91, 405 90, 429 89, 323 73, 873 121, 291 98,157 73,605 121,021 97, 698 72, 906 120,139 72,062 119,135 95, 562 225, 205 224, 008 221, 361 218, 382 1 1 1 1 1 1 1 1 4 4 4 4 557 446 545 1^097 1,605 1,687 1,422 1, 387 2,789 2,621 2,748 3,549 19,136 18,990 18, 553 24,178 28,780 34,103 30, 246 40,140 26, 388 25,042 26, 709 36,332 30,182 39, 640 29, 501 38, 856 2,256 2,251 2,251 2,250 1,508 1,501 1,501 1,500 3,132 3,119 3,119 3,119 1,272 1,266 1,266 1,266 3,157 3,157 3,157 3,157 2,173 2,180 2,188 2,205 1,875 1,886 1,894 1,918 2,842 2,859 2, 886 2,913 2,390 2,418 2,443 2,469 5,767 5, 771 5,837 5,874 1 1 1 1 1, 411 1,207 708 428,451 2, 951, 361553, 440 354, 821 513, 441 362, 404 1,151,314 1,060, 732 1, 279, 234 606, r 1,079,074 1, 328,063 617, 850 435, 2' 0 2, 958,121 555, 392 352, 440 518,12f >6 359 359,330 330 1,157, 687 1,100, 553 1,296,368 r 611,188 '""440, 310 2, 966, 367565, 875 354, 456511,483 371,130 1,161,351 1,140, 1, 362,045 643, 765 447,429 i,3^025, 931i78, 396 356, 7946-26. 816 391,981 1,173, 679 LIABILITIES Federal Reserve notes in actual circulation: Oct. 25 Nov. 1 Nov. 8 Nov. 15 Deposits: Member bank—reserve account: Oct. 25 Nov. l._. Nov. 8 Nov. 15 U. S. Treasurer-general account: Oct. 25 Nov. 1 Nov. 8 Nov. 15 Foreign bank: Oct. 25 Nov. 1 Nov. 8 Nov. 15 Other deposits: Oct. 25 Nov. 1 __ . Nov. 8 Nov. 15 ' Less than $500. 4, 743, 717 4, 781, 385 4, 817,094 4,805, 254 400,330 1, 187,036 400, 305 1, 202, 765 400, 231 1, 205, 831 399, 410 1, 203, 510 333,002 333, 989 337, 704 337, 366 440, 727 220,481 158,778 1,043,041 187,157 , 1 3 7 , 274 177, 792 440,096 223, 798 160, 345 , 047, 750188,998 88,9 137,913 179,269 448, 301 225, 247 160, 585 , 051, 487189, 89 408 4 138, 706 180, 503 448, 015 225, 548159, 864 1,052, 207 189, 382 3 138, 700 180,396 82, 536 83, 775 84,186 83, 555 375, 563 382,382 394,905 387, 301 11, 950, 446 11,813,664 11, 748, 660 11, 587,156 606, 676 6,404,940 608,174 6, 256,122 602, 868 \6;139,740 570, 731 6,096, 910 581,117 585, 326 609, 704 595, 266 651, 208 278,174 199,166 1, 682, 706 285, 712 153, 554 270,802 207, 650 668, 843 278, 215 195,014 1, 670,938 290,947 152,126 263,863211, 535 221, 024 659, 384 291, 428 202, 943 1, 673, 756 217, 851 652, 091 279, 791 198, 038 1, 639, 906 295^ 690 151,193 263, 334 628, 741 632, 561 627,053 626, 355 326,003 349, C30 347, 622 564,123 21, 652 95, 204 21, 441 112, 045 20, 318 115, 452 41, 933 152, 504 13,836 16, 904 18, 937 44, 300 33, 899 42, 662 34, 225 63, 624 16, 960 19,169 6,904 20,487 10, 874 18, 923 16, 756 20,195 29, 745 40,158 51, 049 90, 641 18, 621 12,915 11,628 21, 337 23,931 20,825 19, 398 20,824 13, 582 16,047 14,017 19, 246 18,044 11, 211 11, 581 26, 634 29, 655 16, 730 27, 357 42, 398 418, 898 470,881 456, 231 454, 277 30, 875 33,889 33, 079 33, 078 142, 998 168, 062 160, 645 158, 688 41, 613 45, 674 44, 582 44,581 39, 897 43, 791 42, 743 42, 743 18, 447 20, 241 19, 763 19, 763 15, 015 16, 480 16, 086 16, 086 51, 909 56, 975 55,612 55, 612 12,441 13, 655 13, 329 13, 329 9,867 10, 830 10, 571 10, 571 12, 441 13,655 13, 328 13, 329 12, 441 13, 655 13, 328 13, 329 30, 954 33, 968 33,165 33,168 272, 874 319,449 322,911 317, 728 6,006 5,881 6,996 183, 713 218,646 225,066 228,860 10, 657 18,333 17,151 15, 908 7,665 12, 832 12, 631 8,961 1,911 2,953 4,647 3,994 7,111 5,990 6,202 6,668 5,307 5, 5881 5,330 4,792 7,760 8,308 7,474 6,582 5,007 5,486 5,329 5,021 900 1,105 1,098 845 3,379 4,300 4,812 4, 599 33,458 30,027 26,175 23, 624 7,874 1100 FEDERAL RESERVE BULLETIN DECEMBER 1939 STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS, BY WEEKS—Continued [In thousands of dollars] Total Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco LIABILITIES—Continued D eposits—C ontinued: Total deposits: Oct. 25 Nov. 1 Nov. 8 Nov. 15 Deferred availability items: Oct. 25 Nov. 1 Nov. 8 Nov. 15 Other liabilities, including accrued dividends: Oct. 25 Nov. l._ Nov. 8 Nov. 15 Total liabilities: Oct. 2 5 . . . . Nov. 1 Nov. 8 Nov. 15 12, 968, 221 12,953,024 12, 875,424 12, 923, 284 665,i, 209 6, >, 826, 855 669,i, 385 6,i, 754,875 663, 261 6,i, 640,903 640; i, 636, 962 653,I, 616 6, 644,088 690, 547 562,106 916,914 67,130 76,117 56, 349 95,835 153, 732 166, 223 115,583 215,1411 4,147 4,278 4,453 4,853 342 371 358 401 1,449 1,477 1, 582 1,855 732, 669 315,492 232,166 1,769, 667 324, 534192, 359 297, 725241, 514 325', 825 189, 267 294, 670240,701 ~"~ '~~~320, 584236, "- 4C7 •-1,773,659 T 768,128 1, 748,983 322, 742 241, 987 1, 785, 747336, 741 .190,^50 7 289,441 250, 745 767^ 419 324',035 240, 987 1, 790, 951336, 938 187, 609 296, 754 262,413 93, 324 30, 998 15,928 27, 628 27,147 47, 580 72, 614 55, 681 24, 598 91, 420 29, 814 16,009 33,906 23,658 45,942 86, 614 58,435 25, 607 65, 766 48,123 24, 798 83, 744 28,929 15, 721 31, 216 24, 975 39,496 70,377 113, 264 79,102 33, 635 137, 358 41, 297 21, 216 39, 346 34,788 647,223 666,237 690, 374 700,055 453 438 447 468 394 410 428 446 118 121 127 131 384 413 429 445 185 193 195 199 164 167 175 181 123 131 135 139 175 179 185 199 112 117 120 125 722,808 713,286 713, 750 725, 545 27, 728 36,802 27,406 35, 555 248 261 272 264 18, 360,173 1,133,011 8,169,072 1, 028, 258 1, 246, 404 591, 772 415, 727 2, 906,416 542,345, 853 684 503, 320 351, 309 1,126,347 18, 429, 234 1,146,178 8,125| 1125 340 1, 046, 606 1, 295, 248 602, 938 422, 552 2,913, 242 "" 343, 320 5C8,024 348, 251 1,132, 731 544,804 18, 259,077 1,120,199 7,963, 555, 253 345, 312 5C1,345 360,026 1,136,333 1,068,021 18, 650,305 1,149, 262 8, 057, 468 1,108, 266 1, 329i 144 628,816 434', 685 2, 980',567, 961 798 347, 664 516, 695 380,881 1,148, 665 CAPITAL ACCOUNTS Capital paid in: Oct. 25 Nov. 1 Nov. 8 Nov. 15 Surplus (section 7): Oct. 25 Nov. 1 Nov. 8 Nov. 15 Surplus (section 13b): Oct. 25 Nov. 1____ Nov. 8 Nov. 15 Other capital accounts: Oct. 25 Nov. 1 Nov. 8 Nov. 15 Total liabilities and capital accounts: Oct. 25 Nov. 1 Nov. 8 Nov. 15 Contingent liability on bills purchased for foreign correspondents: Oct. 25 Nov. 1 Commitments to make industrial advances: Oct. 25 Nov. 1 Nov. 8 Nov. 15 4,561 4,561 4,561 4,561 13.803 13,805 13.804 13,804 3,992 4,004 4,019 4,019 2,919 2,919 2,922 2,922 4,303 4,303 4,303 4,303 4,050 4,051 4,051 4,052 10,623 10,621 10, 621 10,621 5,630 5,630 5,630 5,630 22, 22, 22, 22, 666 666 666 666 4,685 4,685 4,685 4,685 3,153 3,153 3,153 3,153 3,613 3,613 3,613 3,613 3,892 9,965 9,965 9,965 9,965 713 713 713 713 1,429 1,429 1,429 1,429 545 545 545 545 1,001 1,001 l,0Gl 1,001 ,142 ,142 ,142 ,142 1,266 1,: ' 1,266 2,121 2,121 2,121 2,121 1,820 1,814 1,841 1,840 7,047 6,979 7,061 7,071 1,365 1,354 1,373 1,349 2,064 2,047 2, (" 2,054 ,063 ,044 .,080 1,063 1,887 1,870 1,! 1,890 2,258 2,249 2,311 2,307 18, 707, 923 1,157, ', 009 8. 289,008 1, 060, 732 1, 279, 234 606, 708 428,451 2, 951, 361553, 440 555, 392 18, 776, 872 1,170,173 8, 245, 346 1,079,074 565,875 18, 607, 318 1,144, 2 084, 028 1,100, 553 18,998, 684 1,173, 305 8,177, 140,808 1, 362', 045 643, 765 447,429 3,025, 931 578,396 17 "" 735 .,1, 354,821 352,440 354,456 356,794 135, 557 135, 580 135, 597 135,602 9,383 9,384 9,383 9,383 50, 909 50,912 50,914 50,915 12,117 12,117 12,115 12,115 13, 792 13,796 13, 797 13,799 149,152 149,152 149,152 149,15f 10,083 10, r 10,083 10,083 52, 463 52, 463 52,463 52, 463 13, 696 13, 696 13, r 13 14, 323 14, 323 14, 323 14, 323 27, 264 27, 264 27, 264 27, 264 2,874 2,874 2,874 2,874 7,457 7,457 7,457 7,457 4,416 4,416 4,416 4,416 1,007 1,007 1,007 1,007 3,293 3,293 3,293 3,293 35, 777 35,642 36, 228 36, 361 1,658 1,654 1,670 1,703 9,107 9,174 9,295 9,432 2,245 2,239 2,305 2,315 3,708 3,689 3,763 3,772 1,555 1,529 1,566 1,565 5,105 5,107 5,107 5,108 3,892 3,892 513, 441 362, 404 1,151, 314 518,126 359, 330 1,157, 687 511,483 371,130 1,161, 351 , 526, 816 391, 9811,173,679 101 101 10,156 10,023 9,966 9,919 493 493 484 481 1,891 1,885 1,934 1,907 955 935 923 922 1,407 1,358 1,356 1,362 858 857 856 850 415 410 410 410 567 567 567 567 3,404 3,354 3,273 3,257 1101 FEDERAL RESERVE BULLETIN DECEMBER 1939 INDUSTRIAL ADVANCES AND COMMITMENTS UNDER SECTION 13b OF THE FEDERAL RESERVE ACT, JUNE 19, 1934, TO NOVEMBER 15, 1939 [Amounts in thousands of dollars] Date (last Wednesday of each month) 1934—Dec. 26. __ 1935—June 26_._ Dec. 314__ 1936—June 2 4 . . . Dec. 3 0 . _ . 1937—Mar. 3 1 . . . June 3 0 . . . Sept. 2 9 . . . Dec. 29. _. 1938—Mar. 3 0 . . . June 2 9 . . . Sept. 2 8 . . . Dec. 2 8 . . . 1939—Jan. 2 5 . . . . Feb. 214__ Mar. 29... Apr. 2 6 . - . May 31... J u n e 28 _ July 26.... Aug. 3 0 . . . Sept. 2 7 . . Oct. 25_... N o v . 15 •».. Applications received by Federal Reserve banks after consideration by Industrial Advisory Committees, net Applications under consideration by Federal Reserve banks Applications approved to date by Federal Reserv e banks (with and without conditions) Number Amount Number Amount Number 4,386 6,325 7,437 8,006 8,247 8,344 8,430 8,474 8,534 8,708 8,976 9,102 9,188 9,203 9,221 9, 249 9,270 9,296 9,308 9,330 9,355 9,366 9,388 9,396 146,972 237, 581 293,084 314,471 328, 998 333, 300 339, 509 341,842 350, 551 358, 936 369, 583 378, 974 387,490 389,176 389, 554 392, 230 394, 055 394, 970 395,499 399,780 401, 228 402, 305 402,944 404,144 71 68 28 12 5 9 10 1 7 19 8 8 5 8 7 14 7 6 5 6 7 2,955 11, 349 2,823 1,880 1,245 1,322 1,263 800 550 1,299 476 146 247 999 964 344 495 400 255 760 532 370 70 470 984 1,646 1,993 2,183 2,280 2,323 2,361 2,381 2,406 2,464 2,566 2,617 2,653 2,660 2,671 2,683 2,697 2,713 2,721 2,730 2,743 2,752 2, 763 2,768 • 2 1 3 Federal Repaid, Reserve expired, bank Approved or withcommit- but not drawn by bank advances ments comapplipleted a outoutcant, Amount standing* standing etc. Federal Reserve Total 49, 634 88, 778 124,493 133,343 139,829 141, 545 145, 758 146, 724 150, 987 154, 918 161,158 168, 380 175,013 175, 651 175, 902 177, 895 178, 639 179, 332 179, 778 183, 354 184,152 185, 234 186,034 186, 799 13, 589 27, 518 32,493 30,484 25, 526 23,059 23, 019 21, 415 20, 216 19, 371 18, 444 17, 567 17, 345 16, 811 16, 474 15, 798 15, 817 15, 305 15, 255 15, 384 14, 667 14,454 14, 545 14, 341 8,225 20, 579 27, 649 24, 454 20, 959 18, 611 16, 331 14,880 12, 780 13,110 13, 649 13, 597 14,161 13,004 12, 907 12, 647 11, 749 11,530 11,175 11,476 11,009 10, 517 10,156 9,919 20,966 11,248 11, 548 9,381 8,226 7,898 1,470 537 3,369 3,419 3,084 5,737 1,946 1,293 1,105 1,975 2,134 2,496 2,067 733 1,220 1,938 1,764 2,267 Financing institution participations out- s standing 5,558 24, 900 44,025 61,425 77, 910 85,210 97, 663 102, 588 107,384 111,193 117,555 122,447 128, 839 132,009 133,001 135,004 136,696 137, 922 139,281 142, 943 144,812 146,156 148,037 148,888 1,296 4,533 8,778 7,599 7,208 6,767 7,275 7,304 7,238 7,825 8,426 9,032 12, 722 12, 534 12, 415 12,471 12, 243 12,079 12,000 12,818 12,444 12,169 11,532 11, 384 i Includes industrial advances past due 3 months or more which are not included in industrial advances outstanding in waskly statement of condition of the Federal Reserve banks. J Includes applications approved conditionally by the Federal Reserve banks and under consideration by applicant. 3 Does not include financing institution guaranties of advances and commitments made by Federal Reserve banks, which amounted to $1,513,763 November 15, 1939. 4 Tuesday. 6 Latest date for which figures are available. FEDERAL RESERVE NOTES—FEDERAL RESERVE AGENTS' ACCOUNTS, BY WEEKS [In thousands of dollars] Total Federal Reserve notes: Issued to F. R. bank by F. R. agent: Oct. 25 Nov. 1 Nov. 8. Nov. 15 Held by Federal Reserve bank: Oct. 25_ Nov. 1 Nov. 8 Nov. 15 In actual circulation: 1 Oct. 25 Nov. 1 Nov. 8 Nov. 15 Collateral held by bank as security for notes issued to bank: Gold certificates on hand and due from U. S. Treasury: Oct. 25 Nov. 1 Nov. 8 Nov. 15 Eligible paper: Oct. 25 Nov. 1 Nov. 8 Nov. 15 Total collateral: Oct. 25 Nov. 1 Nov. 8.. Nov. 15 1 Boston New York Philadel- Cleve- Richphia land mond Atlanta Chicago MinneapSt. Louis olis Kansas City 5,060,802 429,043 1, 283,175351, 207 461,881 231,531 170,119 1,080,862 199, 722141, 662 187,064 5,069, 242429,080 1,283,981 351, 351', 726 462, 462', 537 235, 667171, 743 1,080,936 199,996 142,385 186, 504 5,102,403 427,162 1, 290,398354,036 467, , 249 143, 753 189, 276 921 236,425 172,178 1,081,875 200, 467,921 5,096, 606 424,913 1, 288^ 849 359, 541 468, 229 237, 692 172,182 1,079, 342 200, 200,603 143,162 188,466 317,085 287, 857 285, 309 291, 352 28, 713 28, 775 26, 25, 503 96,139 81, 216 84,567 85, 339 18, 205 17, 737 16, 332 22,175 21,154 22,441 19, 620 20, 214 37,821 33,186 30,388 27,135 12,565 10,998 10,841 11,221 Dallas 91,390 433,: 13,146 13,959 90, 728 433,959 =7,454 91, 676 447,''"' 90, 900 442, 727 9,272 7,235 8,773 8,070 8,854 6,953 7,490 7,345 57, 583 51, 577 52, 549 55,426 11,050 11,869 11,178 12,144 11,341 11, 398 11, 593 12, 318 4, 743, 71 400,330 4, 781, 385400,305 4,817,094 400,231 4,805, 254 "1,410 1,187,036 333,002 440,727 220,481 1, 202,765333,989 440,096 223; 1, 205,831 337, 704 448, 301 225, 247 1, 203, 510337, 366 448,01 225, 548 158, 778 160, 345 160, 585 159,864 1,043,041 137, 274 177, 792 1,047,750 188; 998 137! " ,913 179,269 1,051,487 189,408 138!I, 706 180, 503 1,052, 207 189, 382 138, I, 700180, 396 82, 536 375, 563 83, 775 382, 382 84,186 394, 905 83, 555 387, 301 5,164,000 440,000 5,166,000 440,000 5,177,000 440,000 5, 202,000 440,000 1, 305,000 360,000 465,000 235,000 174,000 1, 305,000360,000 465,000 237,000 174,000 1, 305,000360,000 471,000 240,000 174,000 1,315,000 370,000 471,000 245, 000 174,000 1, 090,000 203,000 143, 500190,000 1,090,000 203,000 143, 500 190, 000 1,090,000 , , 203,000 , ,145, 500 190,000 1090000 203,000 1,090,000 0 0 0 145, 4 500 0 190,000 94, 500 464,:,000 94, 500 464!:,000 94, 500 464!:,000 1,626 2,132 2,346 2,337 100 85 75 5,165, 626 440,000 5,168,132 440,100 5,179, 346 440,085 5, 204, 337440,075 353 370 418 360 63 55 30 60 1,305, 353 360,063 465,000 1, 305, 370360,055 465,000 1,030 471,000 1,305,418 360; 1, 315, 360370,060 471,000 310 340 301 256 235, 310 237, 340 240,301 245, 256 110 110 135 174,000 174,000 174,000 174, 000 1,090,000 203,110 1,090,000 203, " 1,090,000 203. 1, 090, 000 203,135 4,388 4,472 5,047 4,462 74 144 185 148 94, 500 464,000 716 1,013 1,192 1,303 143, 574 190,716 143, 644 191,013 145, 685 '"191,192 145, 648 191,303 Includes Federal Reserve notes held by the United States Treasury or by a Federal Reserve bank other than the issuing bank. San Francisco 500 500 500 500 464,000 464,000 464,000 464,000 1102 FEDERAL RESERVE BULLETIN DECEMBER 1939 RESERVE POSITION OF MEMBER BANKS, OCTOBER, 1939 MEMBER BANK RESERVE BALANCES BY CLASSES OF BANKS [Averages of daily figures. In millions of dollars] [Averages of daily figures. In millions of dollars] Gross Net dedeTime demand mand de- posits deposits posits > Classes of banks and districts All member banks _ _36,732 29,973 11, 735 Central reserve city banks: 13, 588 12, 952 New York 2,506 2,831 Chicago Reserve city banks: Boston district New York district Philadelphia district.. Cleveland district Richmond district Atlanta district Chicago district St. Louis district Minneapolis district.. Kansas City district... Dallas district San Francisco district. Reserves with Federal Reserve banks Required All member banks * 6,372 11,862 5,490 744 495 2,984 595 5,958 1,112 2,974 518 1,214 221 1,328 1,736 781 751 1,336 872 409 1,071 760 2,253 1,102 177 1,088 1,332 594 508 922 647 295 660 468 1,784 88 155 246 724 208 177 575 179 90 158 128 1,924 197 39 203 269 114 98 190 122 56 123 88 408 407 51 398 495 182 130 333 215 88 201 132 571 210 13 196 226 67 32 143 93 32 77 44 163 12, 733 9,576 4,652 1,908 3,203 1,295 Country banks: Boston district 913 New York district 1,353 Philadelphia district.. 673 Cleveland district 621 Richmond district 556 Atlanta district 490 Chicago district. _ 897 St. Louis district 383 Minneapolis district.. 323 Kansas City district... 474 Dallas district 545 San Francisco district. 350 653 981 447 411 334 290 554 235 204 282 324 223 558 1,395 874 673 350 224 725 241 272 157 104 270 106 188 97 83 58 46 103 40 38 42 44 40 193 365 174 145 96 74 208 68 61 71 78 54 86 177 77 62 39 28 105 28 23 30 34 13 4,939 5,843 885 1,588 704 Total Total _ . 7,579 1 Gross demand deposits minus demand balances with domestic banks (except private banks and American branches of foreign banks) and cash items in process of collection. NOTE.—See table at foot of p. 1113 for percentages of deposits required to be held as reserves Total reserves held: 1938—September October November December 1939—January. February March April May June July August September October Week ending (Friday): 1939—Sept. 22 Sept. 29 Oct. 6 Oct. 13 Oct. 20 Oct. 27 Nov. 3 Nov. 10 Excess reserves: 1938—September October November December 1939—January February March. April May June July August September October Week ending (Friday): 1939—Sept. 22 Sept. 29 Oct. 6 Oct. 13 Oct. 20 Oct. 27 Nov. 3 Nov. 10 Reserve Country city banks banks * New York cago 8,196 8,546 8,727 8,745 9,029 8,925 9,021 9,624 9,997 10,085 10, 321 10, 659 11,443 11,862 3,669 3, 939 4,075 4,139 4,409 4,482 4,472 4,889 5,094 5,049 5,195 5,366 5,866 5, 958 861 884 888 898 780 673 681 794 878 893 848 923 1,009 1,112 2,352 2,409 2,426 2,387 2,474 2,405 2,475 2,544 2,630 2,728 2,827 2,883 3,009 3,203 1,314 1,317 1,338 1,322 1,366 1,364 1,393 1,397 1,395 1,415 1,451 1,486 1,559 1,588 11, 593 11, 640 11, 675 11, 747 11,921 12,001 11, 920 11, 759 5,925 5,899 5,898 5,896 5,987 6,023 5,930 5,760 1,049 1,091 1,090 1,094 1,112 1,129 1,137 1,119 3,050 3,101 3,107 3,166 3,221 3,265 3,263 3,271 1,569 1,550 1,580 1,591 1,602 1,583 1,590 1,609 2,920 3,143 3,276 3,226 3,484 3,373 3,432 3,926 4,212 4,246 4,402 4,607 5,198 5,490 1,382 1,589 1,712 1,734 1,996 2,047 1,986 2,302 2,465 2,394 2,504 2,587 2,943 2,974 361 375 374 376 260 164 179 299 360 362 305 363 430 518 698 712 710 658 734 669 741 794 858 944 1,013 1,046 1,147 1,295 479 467 480 457 495 494 526 531 529 546 581 611 678 704 5,317 5,352 5,361 5,402 5,541 5,590 P5, 503 P5, 358 2,982 2,956 2,936 2,927 3,004 3,020 2,924 2,772 466 503 504 504 515 530 535 522 1,180 1,223 1,224 1,265 1,306 1,342 1,339 1,340 706 717 Excess Held Central reserve city banks Chi- p1 Preliminary. Weekly figures of excess reserves of all member banks and of country banks are estimates. DEPOSITS OF MEMBER BANKS IN LARGER AND SMALLER CENTERS [Averages of daily figures. In millions of dollars] Member banks in larger centers Member banks in smaller centers (places over 15,000) (places under 15,000) All member bank.5 Federal Reserve district Boston New York Philadelphia Cleveland Richmond Atlanta Chicago _ St. Louis Minneapolis Kansas City. _ Dallas San Francisco . _ _ Total Gross demand Time Oct. Sept. Oct. Sept. 2,128 15,162 2,001 2,358 1,337 1,241 5,064 1,255 732 1,545 1,306 2,602 2,050 14,876 1,932 2,280 1,298 1,201 4,939 1,210 722 1,520 1,256 2,537 647 2,295 1,120 1,397 558 400 1,795 420 362 315 231 2,194 651 2,275 1,123 1,397 556 400 1,784 420 362 315 232 2,193 36, 732 35, 820 11, 735 11, 706 Gross demand Oct. Time Sept. 1,914 1,989 l 1, 272 i 1, 227 1,692 1,755 2,047 2,123 1,110 1,143 1,052 1,089 1 1, 901 i 1,858 988 1,026 541 536 1,176 1,199 1,004 966 2,416 2,477 518 i 1,048 667 1,097 363 314 i 1,006 303 178 201 186 2,096 522 i 1,042 670 1,098 362 314 i 999 303 177 200 186 2,095 138 302 246 235 195 151 332 229 191 346 302 125 136 302 240 233 189 149 326 222 186 343 290 121 129 502 453 300 195 87 294 117 185 114 46 98 129 501 453 299 194 86 293 317 185 115 46 98 117, 520 116, 981 i 7,976 i 7,968 2,792 2,737 2,520 2,515 * Excluding central reserve city banks, for which figures for latest month are shown in table above. Gross demand Oct. Oct. Sept. Time Sept. Oct. Sept. DECEMBER 1103 FEDERAL RESERVE BULLETIN 1939 KINDS OF MONEY IN CIRCULATION [Outside Treasury and Federal Reserve banks. In millions of dollars] End of month Total Gold certificates Silver dollars Silver certificates Treasury notes of 1890 Subsidiary silver coin Federal National bank notes United Federal Reserve States Reserve bank notes notes notes Minor coin 1938—October.... November. December.. 6,700 6,787 6,856 76 76 75 1,297 1,312 1,339 351 356 357 148 151 151 257 4,282 4,349 4,405 206 203 201 1939—JanuaryFebruary.. March April May June. July. August September. October 6,653 6,731 6,817 6,905 6,967 7,047 7,049 7,171 7,293 7,342 75 74 74 73 72 72 71 71 71 70 1,269 1,327 1,378 1,385 1,417 1,454 1,446 1,465 1,488 1,485 348 350 352 354 358 361 362 365 369 373 149 150 151 152 154 155 156 157 159 161 244 246 251 255 259 266 264 267 269 267 4,301 4,320 4,350 4,426 4,449 4,484 4,496 4,595 4,688 4,739 198 195 193 191 189 186 184 182 180 178 Back figures—See Annual Report for 1937 (table 35). PAPER CURRENCY, BY DENOMINATIONS, AND COIN IN CIRCULATION [Outside Treasury and Federal Reserve banks. In millions of dollars] Large denomination currency 2 Total Coin and small denomination currency 2 in circula$13 tion i Total Coin $2 $5 $10 $20 Total 1938—October 6,700 6,787 6,856 5,021 5,096 5,147 540 548 550 505 511 524 32 33 34 923 936 946 1,572 1,599 1,611 1,450 1,469 1,481 1, 683 1,696 1,714 1939—January February March 6,653 6,731 6,817 6,905 6,967 7,047 7,049 7,171 7,293 7,342 4,953 5,011 5,049 5,069 5,109 5,164 5,169 5,253 5,329 5,363 538 541 544 548 554 558 561 566 571 577 492 498 503 505 513 514 514 521 532 535 32 33 33 32 33 33 33 34 34 34 904 919 928 929 937 947 947 966 980 982 1,546 1,574 1,594 1,602 1,614 1,638 1,644 1,681 1,706 1,710 1,440 1,446 1,448 1,453 1,458 1,473 1,470 1,487 1,507 1,526 1,705 1,721 1,770 1,838 1,861 1,887 1,885 1,922 1,965 1,981 End of month November December April May June July August September. October $50 Un- $5,000 $10,00c assorted! $100 $500 $1,000 400 404 409 754 761 770 157 158 160 321 323 327 18 17 17 33 32 32 4 5 5 403 406 411 418 422 428 426 433 440 445 768 774 799 829 836 848 847 857 876 884 160 161 165 170 172 176 175 180 185 186 329 335 349 370 380 388 391 405 413 415 17 17 17 18 17 17 17 17 20 20 28 28 28 33 33 29 28 30 30 30 6 1 2 3 3 3 4 4 1 2 1 Total of amounts of coin and paper currency shown by denominations less unassorted currency in Treasury and Federal Reserve banks. 2 Includes unassorted currency held in Treasury and Federal Reserve banks and currency of unknown denominations reported by the Treasury as destroyed. 3 Paper currency only; $1 silver coins reported under coin. Back figures—See Annual Report for 1937 (table 36). TREASURY CURRENCY OUTSTANDING SHIPMENTS AND RECEIPTS OF UNITED STATES PAPER CURRENCY [Held by Treasury and Federal Reserve banks and in circulation, In millions of dollars] End of month Silver Federal Nadollars Suband sid- M i n o r United Re- tional Total silver iary coin States serve b a n k bul- silver notes b a n k notes lion * coin notes 1938—October _ . „ 2,751 November. 2,773 December.. 2,798 1,634 1,657 1,685 376 376 376 158 158 159 347 347 347 29 29 28 208 206 203 1939—January....... 2,816 February __ 2,824 March 2,839 April 2,849 May 2,862 June. _ 2,881 2,895 July 2,907 August September. 2,919 2,932 October 1,705 1,717 1,733 1,746 1,759 1,778 1,794 1,804 1,814 1,825 376 376 377 376 377 380 381 383 386 390 159 160 160 160 161 161 162 162 164 166 347 347 347 347 347 347 347 347 ••347 347 28 27 27 27 26 26 26 25 25 25 201 198 196 193 191 189 186 185 183 181 '•Revised. 1 Includes silver held against silver certificates a m o u n t i n g to $1,729, 000,000 on October 31, 1939 a n d $1,564,000,000 on October 31, 1938. [By selected b a n k s and financial institutions in N e w York C i t y . I n millions of dollars] Ship- Net ments to Receipts from Europe 1936 1937 1938 34.8 21.5 33 1 26.2 47.6 34 4 8.6 1938—October.... November. December. 10.6 3.4 .7 .6 1.0 2.2 10.0 2.4 1939—January.... February.. March April May.. June July August.... September October... 6.7 3.0 27.3 46.1 3.8 2.9 2.2 4.7 .8 1.8 2.0 1.0 .9 .3 4.7 2.0 26.4 45.8 3.1 1.8 1.2 3.8 .7 1.6 Year or month Europe ship- ments .7 1.1 1.0 .9 .1 .2 Back figures.—See Annual Report for 1937 (table 38). Description.—See BULLETIN for January 1932, pp. 7-8. Net receipts 26.1 1.3 1104 FEDERAL RESERVE BULLETIN DECEMBER 1939 ANALYSIS OF CHANGES IN GOLD STOCK OF UNITED STATES MOVEMENT OF GOLD TO AND FROM UNITED STATES * [In millions of dollars] [In thousands of dollars] Gold stock at end of period Period Total 19341 1935 1936 1937 1938 . . 1937—July August September October November December 1938—January. February March. April May June July . . August... •. September October November December . 1939—January February.... March April May June July August September October Nov. 1-22P nactive account Increase in gold stock Net Dogain or mesOSS ( - ) tic Net gold through gold import marking protrans- ducactions 2 tion 8,238 10,125 11, 258 12, 760 14, 512 4,202.5 1,133.9 82.6 .2 1,887. 2 1, 739. 0 26.5 1,132. 5 1,116. 6 - 8 5 . 9 1,227.9 1, 502. 5 1, 585. 5 -200.4 1, 751. 5 1, 973. 6 -333. 5 12,446 12, 567 12, 741 12, 803 12, 774 12, 760 1, 214.1 1, 335. 7 1, 210. 0 1, 271. 9 1, 242. 5 1, 227. 9 127.3 121.6 174.3 62.0 -29.3 -14.0 175.4 - 3 5 . 5 104.8 -5.3 145.5 9.3 90.5 -8.0 22.1 - 2 0 . 1 18.0 -101.6 12.7 16.9 12.2 14.9 13.8 11.9 12, 756 12, 776 12, 795 12, 869 12 919 12, 963 13, 017 13,136 13, 760 14, 065 14, 312 14, 512 1, 223. 2 1, 200. 6 1,183. 0 -4.6 20.7 18.5 74.3 49.8 44.2 54.5 118.3 623.8 305.0 247.5 199.6 2.1 -1.1 8.0 - 1 8 . 2 -.6 52.9 -1.2 71.1 52.8 - 5 3 . 9 55.3 - 1 5 . 5 63.8 - 2 0 . 9 166.0 - 2 8 . 8 520.9 - 1 3 . 3 562.4 -110.2 -7.4 177. 8 240.5 - 6 2 . 4 11.0 10.0 10.7 10.6 11.5 9.6 14.2 14.7 14.1 13.5 15.5 13.3 170.0 192. 7 383.8 532. 3 166.2 153.3 128.0 407.6 285.9 159.9 165.7 156.3 223.3 365.4 605.8 429.4 240.4 278.6 259.9 326.1 69.7 69.6 14.1 -48.6 10.7 -114.8 -251.6 -102.6 -166.2 152.1 2.8 79.5 82.4 12.2 10.4 11.0 13.1 12.6 10.6 13.1 14.0 15.6 14, 682 14, 874 15, 258 15 791 15,957 16 110 16, 238 16, 646 16, 932 17, 091 17, 257 National Nonmember banks In- State sured1 Not Number of banks suspended: 1934 1935 1936 1937 1938 1939—Jan.-Oct Deposits of suspended banks (in thousands of dollars):" 1934 1935 1936 1937 1938 1939—Jan.-Oct 36, 937 10,015 11, 306 19, 723 13,012 34, 762 40 5,313 507 7,379 1,708 36 211 1,357 25, 736 1,912 3,763 10, 207 10,156 11,721 5,202 34, 98, 93! 59S 48C 1,044 2,46; 1 Represents licensed banks suspended; does not include nonlicense< banks placed in liquidation or receivership. 2 Federal deposit insurance became operative January 1, 1934. * Deposits of member banks and insured nonmember banks suspended are as of dates of suspension, and deposits of noninsured nonmembei banks are based on the latest data available at the time the suspension; were reported. Back figures—See Annual Report for 1937 (table 76). Exports Imports Jan.-Oct. Exports 69,740 Imports 165,122 3,770 6,363 301,311 3,860 78, 946 1, 797,485 239,264 26, 398 4,847 4,509 8,252 19,006 2,101 4,653 3,601 55, 272 33,226 6,363 2,990 Sweden. Switzerland United Kingdom... 10,182 9,954 Canada. 1,794 Mexico 394 Central America.__ 4 Argentina Chile Colombia Ecuador 785 Peru 423 Venezuela 8,420 Australia British India 2,703 China and Hong 4,087 Kong apan 12,497 D hilippine Islands. 3,188 South Africa 2,14" !,854 All other countries 2 . Total September October Imports 1,482 162, 451 120, 850 653 445 816 2,102 143 1,357 375 5,474 4,065 5,157 16, 425 3,948 11 247 20, 518 136,017 30, 349 15 326,089 15 2,955,485 Exports 68 54 156 206 2,528 487 i Figures represent customs valuations which, with some exceptions, xe at rate of $35 a fine ounce. * Includes all movements of unreported origin or destination. Back figures.—See table, p. 1135, and Annual Report for 1937 (tables 1 and 32). BANK DEBITS Debits to individual deposit accounts, at banks in principal cities.] [In millions of dollars] Year and month 1929.. 1935.. BANK SUSPENSIONS^ Member banks From or t o - 96.0 110.7 Belgium 131.6 ance... 143.9 :taly 148.6 Netherlands p Preliminary. 1 Figures based on rate of $20.67 a fine ounce in January 1934 and $35 a 2fine ounce thereafter. Gold held under earmark at Federal Eeserve banks for foreign account on October 31, 1939, in millions of dollars: 1,053.1. NOTE.—Figures for domestic production of gold are those published in table, p. 1135, adjusted to exclude production in Philippines. Adjustment based on annual figures reported by Director of Mint and monthly imports of gold to U. S. from Philippines. For back figures see Annual Report for 1937 (table 29). Total, all banks 1939 1937.. 1938.. Total, all reporting centers 982, 531 402, 718 461, 889 469, 463 405,929 New York City 140 other leading cities i 133 other reporting cities 2 197,836 168, 778 331,938 190,165 219, 670 235, 206 204, 745 47,504 28, 547 33,283 36,421 32,406 184,006 1938—September.. October November.. December. _ 32,192 36,130 32, 224 43, 209 13,085 15,140 12,425 18,879 16, 440 18, 096 17,039 21, 087 2,666 2,895 2,760 3,243 1939—January February... March April May. June. July .__ August September.. October 35,180 29,973 37, 322 32, 822 34, 656 36,883 33, 245 33,314 36, 594 35,830 14, 533 12, 380 16, 274 13, 311 14,165 15, 312 12, 794 13,118 15,138 13, 683 17, 860 15, 201 18, 211 16,832 17, 763 18, 676 17,683 17,496 18, 526 19,029 2,786 2,392 2,837 2, 679 2,728 2,895 2,768 2,701 2,930 3,119 1 Comprises centers for which bank debit figures are available beginning with 1919, except that one substitution was made in 1920 and one in 21928. Cities (other than the 141 centers) for which bank debits are currently reported. The number has changed very little since 1934 and has numbered 133 since 1936. Back figures.—See Annual Report for 1937 (Table 71), which also gives a definition of bank debits. Figures for individual reporting cities and totals by Federal Reserve districts are available in mimeographed form. 1105 FEDERAL RESERVE BULLETIN DECEMBER 1939 ALL BANKS IN THE UNITED STATES Comprises all national banks in the continental United States and all State commercial banks, trust companies, mutual and stock savings banks and such private and industrial banks as are included in abstracts issued by State banking departments. Also includes, during the period June 1934-June 1935, private banks which, pursuant to the provisions of sec. 21 (a) of the Banking Act of 1933, submitted condition reports to the Comptroller of the Currency. Under the amended provisions of sec. 21 (a) private banks no longer report to the Comptroller of the Currency. For comparative figures of private banks included in the figures from June 1934 to December 1935, see Federal Reserve Bulletin for December 1935, p. 883, and July 1936, p. 535. Figures for nonmember banks are for dates indicated or nearest thereto for which figures are available. NUMBER OF BANKS Call date DEPOSITS, EXCLUSIVE OF INTERBANK DEPOSITS* Member banks Nonmember banks National Other Mutual nonsavings member banks Total Total State [In millions of dollars] Member banks All banks Call date Total National State banks Nonmeniber banks Mutual Other savings nonmembanks ber banks 1929—June 29 Dec. 31 25,110 24, 630 8,707 8,522 7,530 7,403 1,177 1,119 611 609 15,792 15,499 1929—June 29... 53,852 Dec. 3 1 — 55, 289 32,284 33, 865 19,411 20, 290 12,873 13, 575 8,983 8,916 12, 584 12, 508 1933—June 30 Dec. 30 14, 519 15, 011 5,606 6,011 4,897 5,154 709 857 576 579 8,337 8,421 37,998 1933—June 30 Dec. 3 0 . . . 38, 505 23,338 23, 771 14,772 15,386 8,566 8,385 9,713 9,708 4,946 5,026 1934—June 30 Dec. 31 15, 835 16,039 6,375 6,442 5,417 5,462 958 980 578 579 8,882 9,018 1934—June 30 Dec. 31.__ 41,870 44, 770 26, 615 28,943 17,097 18, 519 9,518 10, 424 9,780 9,828 5,475 6,000 1935—June 29 Dec. 31 15, 994 15, 837 6,410 6,387 5,425 5,386 985 1,001 571 570 9,013 8,880 1935—June 29 _. 45, 766 Dec. 31_._ 48,964 29,496 32,159 19,031 20,886 10, 465 11, 273 9,920 9,963 6,350 6,842 1936—June 30 Dec. 31 15, 752 15, 628 6,400 6,376 5,368 5,325 1,032 1,051 566 565 8,786 8,687 1936—June 30.. 51,335 Dec. 31__. 53, 701 34, 098 35,893 21, 986 23,107 12,112 12, 786 10, 060 10,143 7,178 7,666 1937—June 30 Dec. 31 15, 527 15, 393 6,357 6,341 5,293 5,260 1,064 1,081 564 563 8,606 8,489 1937—June 30.. Dec. 3 1 — 53, 287 52, 440 35,440 34,810 22,926 22, 655 12, 514 12,155 10, 213 10, 257 7,635 7,373 1938—June 30 Dec. 31 15, 287 15, 206 6,338 6,338 5,242 5,224 1,096 1,114 563 556 8,386 8,312 1938—June 30— Dec. 3 1 — 52,195 54,054 34, 745 36, 211 22, 553 23, 497 12,193 12, 714 10, 296 10, 365 7; 153 7,478 1939—June 30 Oct. 23 15,082 6,330 6,339 5,203 5,196 1,127 1,143 553 8,199 1939—June 30. .. 55, 992 Oct. 2 3 . . . . 38,027 39, 287 24, 534 25, 248 13, 493 14,039 10, 521 7,444 For footnotes see table below. For footnotes see table below. LOANS AND INVESTMENTS [In millions of dollars] Member banks All b a n k s Nonmember banks Mutual savings banks Call date Total Loans Investments Total Loans Investments Total Loans Investments Other nonmember banks Total Loans Investments 1929—June 29. _. Dec. 31 58,474 58, 417 41, 531 41, 918 16, 943 16,499 35, 711 35, 934 25, 658 26,150 10,052 9,784 9,556 9,463 5,892 5,945 3,664 3,518 13,207 13,020 9,981 9,823 3,227 3,197 1933—June 30 Dec. 30 40,076 40,319 22,203 21,977 17, 872 18, 342 24, 786 25, 220 12,858 12,833 11, 928 12, 386 10,044 9,985 5,941 5,906 4,103 4,079 5,246 5,115 3,404 3,238 1,841 1,877 1934—June 30. . Dec. 31 42, 502 43,458 21, 278 20, 473 21, 224 22, 984 27,175 28,150 12, 523 12,028 14, 652 16,122 9,904 9,782 5,648 5,491 4,256 4,291 5,423 5,526 3,108 2,955 2,315 2,571 1935—June 29 Dec. 31 44, 416 45, 717 20, 272 20, 329 24,145 25, 388 28, 785 29, 985 11, 928 12,175 16, 857 17,810 9,852 9,804 5,341 5,210 4,511 4,594 5,779 5,927 3,003 2,944 2,777 2,983 1936—June 30 Dec. 31 48,458 49, 524 20, 679 21,449 27, 778 28, 075 32, 259 33,000 12, 542 13, 360 19, 717 19, 640 9,961 10,060 5,105 5,027 4,856 5,034 6,238 6,464 3,032 3,062 3,206 3,402 49, 696 48, 566 22, 514 22,198 27,182 26, 368 32, 739 31, 752 14, 285 13,958 18, 454 17, 794 10,180 10,187 5,002 4,996 5,178 5,191 6,778 6,627 3,227 3,244 3,550 3,383 1938—June 30 Dec. 31 2 47,381 48, 929 21,130 21, 354 26, 252 27, 575 30, 721 32,070 12,938 13, 208 17, 783 18, 863 10,196 10, 255 4,961 4,930 5,235 5,325 6,465 6,604 3,231 3,217 3,234 3,387 1939—June 30 2 Oct. 2 2 3 49, 611 21,314 28, 297 32, 603 33,075 13,141 13,470 19, 462 19, 605 10,342 4,931 5,411 6,665 3,242 3,423 1937—June 30 „ Dec. 31 1 Prior to Dec. 30, 1933, member-bank figures include interbank deposits not subject to immediate withdrawal, which aggregated $103,000,000 on that date. The nonmember bank figures include interbank deposits to the extent that they are not shown separately in a few State bank abstracts. 2 Beginning December 1938 figures of loans and investments exclude approximately $50,000,000 and $100,000,000, heretofore reported as loans and investments, respectively, which indirectly represent bank premises or other real estate and are now classified in condition reports among "Other assets." 3 Figures of all banks not available. Back figures—See Annual Report for 1937 (tables 48-49). 1106 FEDERAL RESERVE BULLETIN DECEMBER 1939 CONDITION OF ALL MEMBER BANKS [In millions of dollars] Loans 1 Call date ComTotal merloans cial, and inOpen indusvest- Total i trial, market ments and paper agricultural 2 Investments i u. S. Government Loans for purchasing or carrying securities To brokers To and others dealers obligations Obli- gations of States Other and securGuar- polit- ities i anical subNotes Bonds teed divi-5 sions Direct Real Loans Other estate to Total loans banks loans * Total Bills TOTAL—ALL MEMBERBANKS 1929—Dec. 31.. 35,934 1933—June 30_. 24, 786 1934—Dec. 31.. 28,150 1935—Dec. 31 _.29,985 1936—Dec. 31.. 33,000 1937—Dec. 31.. 31, 752 1938—Dec. 31.. 32,070 1939—Mar. 29.. 32,095 June 30.. 32,603 Oct. 2 . . . 33, 075 26,150 12, 858 12,028 12,175 13, 360 13, 958 13, 208 5,448 3,047 5,531 3,141 5,571 13,470 (8) 583 595 751 651 634 643 442 427 420 2,463 953 1,030 1,243 1,410 950 973 838 731 7,685 3,752 3,110 2,893 2,785 2,752 ?775 733 736 () 714 11,515 9,784 3,863 330 4,857 11, 928 6,887 155 4,708 16,122 9,906 98 5,006 17, 810 LO, 501 85 6,041 19, 640 LI, 639 70 6,996 17, 794 LO, 574 125 2,728 18,863 LO, 882 99 2,671 19,048 LO, 691 58 2,796 19, 462 LO, 946 (8) 19, 605 LO, 893 169 157 139 140 144 141 121 124 130 322 162 63 42 42 29 99 77 41 3,191 2,372 2,273 2,284 2,405 2,547 2,716 2,749 2,828 6 6 989 1,768 1,906 1,797 2,340 2,660 2,831 2,918 1,393 1,744 1,965 2,178 2,226 2,047 2,448 2,555 2,554 2,764 4,528 3,297 3,262 3,364 3,868 3,376 3,192 3,142 3,131 3,030 278 401 470 388 894 1,086 1,123 1,157 222 478 446 507 426 342 517 582 480 662 758 680 632 653 790 704 698 714 736 708 C8) 78 88 94 94 109 108 135 155 96 87 129 141 143 135 141 149 154 147 100 103 124 121 176 171 179 168 6 249 1,113 1,030 1,192 1,053 662 286 303 441 (8) 520 2,049 4,217 5,403 4,527 4,277 3,389 2,604 2,720 (8) 3,094 3,725 4,659 3,905 6,060 5,635 7,208 7,783 7,786 (8) NEW YORK CITY » 8,774 7,133 7,761 8,418 9,280 8,313 8,335 8,408 8,688 9,044 6,683 3,424 3,159 3,434 3,855 3,673 3,262 3,086 2,988 3,116 1929—Dec. 31.. 1,757 1933—June 30_. 1,287 1934—Dec. 31. _ 1,581 1935—Dec. 31.. 1,868 1936—Dec. 31. _ 2,100 1937—Dec. 31.. 1,901 1938—Dec. 31.. 1,969 1939—Mar. 29__ 1,965 June30__ 2,052 Oct. 2... 2,050 1,448 677 532 476 633 635 539 545 544 563 1929—Dec. 31.. 1933—June 30.. 1934—Dec. 31.. 1935—Dec. 31.. 1936—Dec. 31.. 1937—Dec. 31.. 1938—Dec. 31.. 1939—Mar. 29.. June 30.. Oct. 2... 1,461 1,456 1,479 () 195 364 396 286 216 198 138 126 128 1,257 758 716 1,078 1,173 761 787 668 555 2,145 1,044 820 793 753 733 220 209 215 ) 251 61 55 29 51 41 43 32 39 8 533 251 170 149 140 129 70 70 71 664 108 195 117 159 123 119 115 115 2,775 1,340 1,124 1,057 1,048 1,066 242 228 221 2,595 2,091 937 3,709 1,024 4,602 1,096 4,985 1,527 5,425 1,811 4,640 436 5,072 427 5,322 440 5,700 5,928 1,112 2,551 3,246 3,425 3,739 3,207 2,963 2,939 3,360 3,401 »58 6 638 758 865 718 495 158 68 168 (8) 166 987 1,664 1,810 1,559 1,536 1,142 831 908 (8) 889 926 824 749 1,462 1,175 1,663 2,040 2,284 (8) 535 237 202 249 402 426 62 57 59 309 610 1,049 1,392 1,467 1,266 1,430 1,420 1,507 1,487 116 384 743 1,061 1,107 916 1,005 992 1,040 1,017 63 6 206 164 213 198 32 59 121 185 (8) 19 82 299 604 375 366 291 212 234 (8) 94 97 279 243 533 518 655 660 621 3,679 1,678 1,671 1,851 2,231 2,610 1,081 1,066 1,116 (8) 2,944 4,011 5,715 6,432 7,000 6,211 6,691 6 91 6 205 95 85 120 106 57 100 78 (8) 165 681 1,692 2,267 1,904 1,589 1,224 977 1,014 (8) 1,112 1,597 2,022 1,724 2,403 2,267 2,997 3,105 3,010 (8) 279 656 697 637 740 823 889 907 448 598 649 723 774 691 808 823 895 897 1,128 930 978 977 1,102 921 866 6,751 6,752 1,368 2,483 3,809 4,076 4,426 3,961 4,278 4,181 4,102 4,091 4,705 4,439 2,005 3,598 1,810 4,756 1,810 5,002 1,881 5,747 2,149 5,677 1,149 5,669 1,121 5,618 5,504 1,180 (8) 5,437 1,267 1,469 2,108 1,940 2,368 2,490 2,636 2,578 2,444 2,383 6 97 64 «13 28 17 29 11 15 11 171 299 562 722 689 786 732 585 563 (8) 999 1,106 1,533 1,189 1,662 1,675 1,893 1,978 1,870 (8) 355 623 645 678 597 643 683 699 627 581 741 807 883 879 982 1,001 1,025 1,058 2,546 1,549 1,552 1,633 1,851 1,630 1,453 1,397 1,351 1,297 CITY OF CHICAGO 9 361 348 C) RESERVE CITY BANKS 1929—Dec. 31.. 12,029 1933—June 30.. 8,492 1934— Dec. 31. 10,028 1935—Dec. 31. 10,780 1936—Dec. 31. 11,795 1937—Dec. 31. 11,414 1938—Dec. 31.. 11,654 1939—Mar. 29_ 11,624 June 30. 11, 756 Oct. 2... 11,880 9,084 4,482 4,312 4,347 4,794 5,203 4,963 4,936 5,004 5,127 2,121 2,116 2,118 (8) 168 126 179 195 209 201 149 145 138 ,131 ,090 ,094 ,124 1,176 1,230 1,249 1,284 () 258 99 55 34 23. 27 20 17 12 856 COUNTRY BANKS 1929—Dec. 31.. 1933—June 30.. 1934—Dec. 31. 1935—Dec. 31. 1936—Dec. 31. 1937— Dec. 31. 1938—Dec. 31. 1939—Mar. 29. June 30_. Oct. 2 . . 13,375 7,873 8,780 8,919 9,825 10,124 10,113 10,098 10,109 10,102 8,936 4,275 4,025 3,918 4,078 4,446 4,444 4,480 4,605 4,665 1,531 1,597 1,626 (8) 201 35 101 142 187 216 138 142 140 291 25 64 20 29 25 25 24 22 2,231 1,117 996 894 843 824 243 226 229 1,462 1,055 1,026 1,035 1,123 1,219 1,353 1,363 1,402 (8) 6 C8) 1 Classifications indicated were revised as of Dec. 31, 1938; for explanation see BULLETIN for January 1939, pp. 22-23, and the April BULLETIN, pp. 259-264. Beginning June 30, 1939, detailed classifications available on June and December dates only. 23 Not reported separately prior to December 1938 except for weekly reporting banks in leading cities. Figures in this column prior to Dec. 31,1938, represent all loans on securities, regardless of purpose, excepting only loans on securities to banks and 4to brokers and dealers. This is a residual item and because of the revised loan classifications figures beginning Dec. 31, 1938, are not comparable with earlier figures. 6 Includes obligations of territorial and insular possessions when reported separately. 6 Includes Treasury certificates of indebtedness. 7 For estimated figures for Dec. 31,1938, on basis comparable with earlier figures see p. 332 of the April BULLETIN. 8 Not reported separately. 9 Central reserve city banks. Back figures.—See Annual Report for 1937 (tables 52-58). 1107 FEDERAL RESERVE BULLETIN DECEMBER 1939 CONDITION OF ALL MEMBER BANKS—Continued [In millions of dollars] Demand deposits, except interbank Call date Interbank deposits Time deposits, except interbank Reserves BalIndiDewith ances mand vid- States CertiFed- Cash with uals, and defied eral doin posits part- polit- and U. S. Re- vault mestic adnerical offiGovserve banks justed ships, subcers' ern- 4 banks and divi- checks ment cor- sions etc.3 porations IndiDomestic vid- States banks uals, and part- polit- Postal nerical savForsubings4 eign diviand De- Time banks cor- sions mand porations Borrow- accounts TOTAL—ALL MEMBER BANKS 1929—Dec. 31__ 1933—June 30_. 1934—Dec. 31__ 1935—Dec. 31__ 1936—Dec. 31__ 1937—Dec. 31__ 1938—Dec. 31_. 1939—Mar. 29.. June 30— Oct. 2___. 2,008 3,149 3,776 4,066 3,414 4,240 4,403 4,674 6 5, 304 12, 089 15,686 18,801 21, 647 20,387 22,293 22, 364 23, 587 25,118 11,830 14,951 18,035 20, 970 19,747 21,119 20,845 22,448 23,983 1,335 1,087 1,799 2,139 2,329 2,132 2,386 2,467 2,532 2,390 1,681 657 838 882 881 767 547 533 790 666 143 806 1,636 844 882 781 790 775 694 675 12,267 7,803 9,020 9,680 10,429 10,806 10,846 10,940 11,063 11,104 827 846 1,576 2,541 2,658 2,738 4,104 4,582 4,975 5,929 179 101 103 111 133 120 109 156 112 6 109 4,750 4,358 5,069 6,193 6,929 6,111 7,168 7,605 8,012 8,676 5,847 4,676 5,370 6,479 7,274 6,507 7,273 7,677 8,281 8,812 128 96 229 323 285 189 280 260 288 321 1,180 461 540 524 457 404 195 272 472 349 20 332 792 224 225 382 139 135 84 72 1,112 671 591 591 679 696 652 655 653 683 232 415 511 558 596 884 705 897 133 203 207 209 188 179 235 178 235 6 237 957 912 1,189 1,401 1,554 1,438 1,688 1,250 1,666 1,747 1,041 870 1,073 1,301 1,495 1,354 1,597 1,182 1,565 1,632 42 87 182 208 191 207 181 141 197 195 2,374 2,235 4,082 5,573 6,572 7,005 8,694 9,112 10,011 11, 617 558 2,168 16, 647 17, 526 665 697 589 746 777 712 774 595 300 294 361 296 482 462 461 441 418 122 788 452 218 104 95 61 68 3,517 3,057 4,S 6,402 5,436 6,510 6,816 7,097 5 8, 243 95 89 134 161 153 129 132 133 142 6142 146 154 449 438 464 511 629 607 6 757 879 191 13 6 15 12 6 7 5 5 6,709 4,837 5,054 5,145 5,275 5,371 5,424 5,467 5,496 5,530 179 2,105 1,582 1,565 1,573 1,585 1,606 1,593 1,692 1,586 1,587 N E W YORK CITY & 1929—Dec. 31._ 1933—June 30._ 1934—Dec. 31._ 1935—Dec. 31_. 1936—Dec. 31_. 1937—Dec. 31. _ 1938—Dec. 31_. 1939—Mar. 29.. June 30— Oct. 2.... 18 110 56 1,198 1,255 1,798 2,338 2,493 2,108 2,687 2,731 2,992 6 3, 568 597 128 133 414 397 423 442 553 524 6 670 310 259 445 522 599 528 658 834 746 6 853 33 2 2 4 5 6 9 10 12 614 12 CITY OF CHICAGO 6 1929—Dec. 31.. 1933—June 30.. 1934—Dec. 31__ 1935—Dec. 31_. 1936—Dec. 31_. 1937—Dec. 31__ 1938—Dec. 31__ 1939—Mar. 29.. June 30__ Oct. 2.... 358 381 413 449 445 452 452 471 316 204 226 229 244 255 257 261 270 270 RESERVE CITY BANKS 1929— Dec. 31_. 1933—June 30. 1934—Dec. 31_. 1935—Dec. 31__ 1936—Dec. 31__ 1937—Dec. 31__ 1938—Dec. 31__ 1939—Mar. 29.. June 30— Oct. 2.... 751 705 1,268 1,594 2,108 2,310 2,354 2,459 2,735 3,053 156 122 207 256 285 200 321 342 318 323 947 1,002 1,543 1,779 1,816 1,470 1,940 2,106 2,210 6 2, 485 5,229 3,764 5,136 6,161 7,126 6,870 7,214 7,326 7,654 8,017 5,547 3,708 4,919 6,001 7,023 6,743 7,034 6,899 7,331 7,803 423 349 585 707 843 777 796 889 917 801 300 108 169 204 230 192 170 123 160 158 76 312 620 385 407 256 424 420 415 410 4,433 2,941 3,494 3,796 4,026 4,161 4,233 4,276 4,320 4,319 371 208 206 266 203 266 269 243 233 627 452 822 927 1,247 1,361 1,353 1,367 1,403 1,555 321 203 702 275 1,296 305 1,676 319 1,929 307 1,645 322 1,956 350 1, 963 307 2,117 329 «2,473 5,711 3,054 4,292 5,047 6,039 5,968 6,224 6,183 6,255 6,677 5,091 2,576 3,589 4,254 5,177 5,143 5,215 5,087 5,272 5,736 742 555 804 901 1,011 959 1,128 1,176 1,130 1,073 72 106 127 167 149 154 114 135 131 39 116 178 137 178 78 143 137 136 133 6,390 3,833 4,554 4,879 5,275 5,504 5,509 5,557 5,619 5,632 133 86 84 388 186 79 35 34 17 22 19 1,604 1,315 1,984 2,422 2,826 2,389 2,719 2,813 2,920 8 3, 307 30 59 117 134 137 107 108 108 115 6116 61 285 210 136 69 61 44 46 40 35 405 228 342 415 483 412 446 438 439 6 515 7 16 16 16 21 23 25 26 6 26 64 15 18 29 34 34 57 64 69 8 71 292 16 2,029 1,533 1,614 1,657 1,697 1,735 1,777 1,795 1,812 1,821 367 167 13 6 3 12 6 5 5 4 2,258 1,517 1,650 1,687 1,750 1,775 1,798 1,818 1,828 1,852 COUNTRY BANKS 1929—Dec. 31_. 1933—June 30.. 1934—Dec. 31_. 1935—Dec. 3 1 . . 1936—Dec. 31__ 1937—Dec. 31__ 1938—Dec. 3 1 . . 1939—Mar. 29.. June 30— Oct. 2_... 158 147 153 145 148 1 Prior to Dec. 31,1935, excludes balances with private banks to the extent that they were then reported in "Other assets." Since Oct. 25, 1933, includes time balances with domestic banks which on that date amounted to $69,000,000 and which prior to that time were reported in "Other assets". 2 Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection and, prior to Dec. 31,1935, less 3cash items reported on hand but not in process of collection. Includes "Due to Federal Reserve banks (transit account)," known as "Due to Federal Reserve banks (deferred credits)" prior to Dec. 31, 1935. 4 U. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits. 6 Central reserve city banks. 6 Partly estimated. Back figures—See Annual Report for 1937 (tables 52-58). 1108 FEDERAL RESERVE BULLETIN DECEMBER 1939 CONDITION OF REPORTING MEMBER BANKS IN 1 0 1 LEADING CITIES [Monthly data are averages of Wednesday figures. In millions of dollars] Loans Date or Month Total loans and investments Total Investments Loans for purchasing or carrying securities Commercial, industrial, and agricultural Open market paper To brokers and dealers U. S. Government obligations Direct Real Loans Other estate to loans banks loans Total To others Total Bills i Motes i Bonds1 Guaranteed Other securities TOTAL—101 CITIES 1938—October 1939—April May June July August. September October 21,323 21, 727 21, 693 21,887 22,046 22,327 22,384 22, 571 8,282 8,127 8,091 8,094 8,146 8,179 8,322 8,421 3,904 3,848 3,839 3,830 3,888 3,930 4,166 4,279 346 305 303 304 312 313 316 317 697 678 671 648 642 568 552 576 537 539 541 532 521 511 505 1,163 1,144 1,151 1,159 1,163 1,171 1,178 1,181 109 69 58 52 64 62 38 35 1,515 1,527 1,523 1,537 1,539 1,540 1,545 1,552 ,041 .3,600 :3,602 3,793 .3,900 14,148 4, 062 .4,150 8,084 8,225 8,296 8,383 8,499 8,537 8,467 8,566 342 398 422 461 488 450 561 2,011 2,033 2,106 2,132 2,149 2,144 2,132 5,872 5,865 5,855 5,906 5,900 5,873 5,873 1,682 2,033 2,033 2,119 2,158 2,265 2,226 2,232 3,275 3,342 3,273 3,291 3,243 3,346 3,369 3,352 1939—Aug. 3O._ Sept. 6__ Sept. 13. Sept. 20. Sept. 27. Oct. 4___ Oct. 11_. Oct. 18... Oct. 25__ Nov. 1— Nov. 8... Nov. 15.. 22,442 22,389 22, 389 22, 339 22,419 22, 498 22, 568 22, 563 22, 657 22, 728 22,835 23,014 8,209 8,305 8,315 8,319 8,350 8,375 8,408 8,423 8,479 8,521 8,521 8,549 3,996 4,075 4,159 4,201 4,229 4,251 4,288 4,286 4,292 4,310 4,330 4,362 317 314 318 315 316 318 318 316 318 317 316 312 640 568 532 533 538 530 548 593 603 594 588 519 512 513 510 510 505 504 501 510 512 500 497 1,174 1,174 1,178 1,180 1,180 1,179 1,182 1,181 1,180 1,184 1,184 1,187 49 46 34 35 35 36 37 36 32 36 37 39 1,546 1,544 1,545 1,546 1,547 1,548 1,549 1,555 1,554 1,559 1,560 1,564 .4,233 A, 084 A, 074 4,020 A, 069 L4,123 4,160 L4,140 L4,178 14,207 14,314 .4, 465 8,565 8,512 8,489 8,428 8,437 8,503 8,559 8,574 8,628 8,684 8,720 8,725 502 468 475 437 419 492 553 571 629 667 702 720 2,160 2,154 2,153 2,131 2,137 2,130 2,128 2,126 2,145 2,159 2,169 2,179 5,903 2,286 5,890 2,219 5,861 2,222 5,860 2,230 5,881 2,232 5,881 2,240 5,878 2,240 5, 877 2,224 5,854 2,226 5,858 2,232 5,849 2,250 5,826 2,402 3,382 3,353 3,363 3,362 3,400 3,380 3,361 :, 342 3,324 3,291 3,344 3,338 1938—October 1939—April May June July August. _ September October 7,809 8,010 7,958 8,103 8,138 8,349 8,393 8,538 2,935 2,795 2,759 2,758 2,765 2,828 2,869 2,895 1,447 1,379 1,372 1,375 1,408 1,483 1,620 1,661 142 117 120 121 120 117 116 115 528 555 529 523 497 493 435 430 197 195 198 201 191 184 177 173 119 110 111 113 115 117 117 116 413 383 385 386 380 382 377 375 4,874 5,215 5,199 5,345 5,373 5,521 5,524 5,643 2,902 2,946 3,024 3,139 3,174 3,197 3,196 3,314 146 170 168 146 205 233 358 741 727 808 821 826 801 788 2,059 2,127 2,163 2,207 2,166 2,162 2,168 803 1,045 1,034 1,060 1,098 1,137 1,105 1,123 1,169 1,224 1,141 1,146 1,101 1,187 1,223 1,206 1939—Aug. 30.. Sept. 6__ Sept. 13. Sept. 20. Sept. 27. Oct. 4 - _ Oct. 11__ Oct. 18__ Oct 25__ Nov 1... Nov 8... Nov 15.. 8,379 8,341 8,361 8,393 8,477 8,525 8,508 8,507 8,614 8,679 8,771 8,858 2,856 2,892 2,858 2,856 2,871 2,875 2,881 2,891 2,936 2,955 2,939 2,943 1,545 1,573 1,615 1,640 1,652 1,655 1,665 1,662 1,663 1,672 1,674 1,682 120 115 115 115 117 117 116 113 115 117 115 110 467 499 430 405 406 412 411 430 467 472 467 463 183 176 178 178 177 173 171 170 179 180 170 168 118 118 118 117 117 117 117 114 114 114 114 115 384 378 377 376 377 375 374 377 375 376 373 376 5,523 5,449 5,503 5,537 5,606 5,650 5,627 5,616 5,678 5,724 5,832 5,915 3,155 3,147 3,191 3,217 3,228 3,280 3,285 3,305 3,385 3,458 3,508 3,517 194 189 226 261 255 320 342 358 411 462 515 541 825 816 812 789 787 786 776 776 814 835 844 2,136 2,142 2,153 2,167 2,186 2,174 2,167 2,171 2,160 2,161 2,149 2,130 1,147 1,093 1,098 1,107 1,120 1,128 1,125 1,120 1,119 1,121 1,132 1,213 1,221 1,209 1,214 1,213 1,258 1,242 1,217 1,191 1,174 1,145 1,192 1,185 1938—October 1939-April May ___ June July _._. August September October 13, 514 13,717 13, 735 13, 784 13,908 13, 978 13, 991 14,033 5,347 5,332 5,332 5,336 5,381 5,351 5,453 5,526 2,457 2,469 2,467 2,455 2,480 2,447 2,546 2,618 204 188 183 183 192 196 200 202 141 142 149 148 151 149 133 122 379 342 341 340 341 337 334 332 1,044 1,034 1,040 1,046 1,048 1,054 1,061 1,065 1,102 1,144 1, i38 1,151 1,159 1,158 1,168 1,177 8,167 8,385 8,403 8,448 8,527 8,627 8,538 8,507 5,182 5,279 5,272 5,244 5,325 5,340 5,271 5,252 879 196 228 254 315 283 217 203 1,270 1,306 1,298 1,311 1,323 1,343 1,344 3,813 3,738 3,692 3,699 3,734 3,711 3,705 1,059 1,060 1,128 1,121 1,109 2,106 2,118 2,132 2,145 2,142 2,159 2,146 2,146 1939—Aug. 30.. Sept. 6 . . . Sept. 13. Sept. 20. Sept. 27. Oct. 4___. Oct. 11__. Oct. 18... Oct 25._ Nov. 1... Nov. 8... Nov. 15.. 14.063 14, 048 14,028 13, 946 13, 942 13, 973 14,060 14,056 14,043 14,049 14.064 14,156 5,353 5,413 5,457 5,463 5,479 5,500 5,527 5,532 5,543 5,566 5,582 5,606 2,451 2,502 2,544 2,561 2,577 2,596 2,623 2,624 2,629 2,638 2,656 2,680 197 199 203 200 199 201 202 203 203 200 201 202 141 141 138 127 127 126 119 118 126 131 127 125 336 336 335 332 333 332 333 331 331 332 330 329 1,056 1,056 1,060 1,063 1,063 1,062 1,065 1,067 1,066 1,070 1,070 1,072 1,162 1,166 1,168 1,170 1,170 1,173 1,175 1,178 1,179 1,183 1,187 1,188 8,710 8,635 8,571 5,410 5,365 5,298 5,211 5,209 5,223 5,274 5,269 5,243 5,226 5,212 5,208 308 279 249 176 164 172 211 213 218 205 187 179 1,335 1,338 1,341 1,342 1,350 1,344 1,352 1,350 1,331 1,324 1,325 1,333 3,767 3,748 3,708 1,139 1,126 1,124 1,123 1,112 1,112 1,115 1,104 1,107 1,111 1,118 1,189 2,161 2,144 2,149 2,149 2,142 2,138 2,144 2,151 2,150 2,146 2,152 2,153 N E W YORK CITY OUTSIDE N E W YORK CITY 8,463 8,473 8,533 8,524 8,500 8,483 8,482 8,550 3,695 3,707 3,711 3,706 3,694 3,697 3,700 3,696 i Not reported separately prior to February 8, 1939. NOTE.—For description of figures see BULLETIN for November 1935 (pp. 711-738) or reprint, which may be obtained from the Division of Research and Statistics, and BULLETIN for June 1937 (pp. 530-531). For back figures see BULLETIN for November 1935 (pp. 711-738) or reprint, BULLETIN for December 1935 (p. 876), Annual Report for 1937 (tables 65-67) and corresponding tables in previous Annual Reports. DECEMBER 1109 FEDERAL RESERVE BULLETIN 1939 CONDITION OF REPORTING MEMBER BANKS IN 101 LEADING CITIES—Continued [Monthly data are averages of Wednesday figures. In millions of dollars.] Demand deposits, except interbank Reserves with Federal Reserve banks Date or month Time deposits, except interbank Interbank deposits IndiIndiDomestic DeBalbanks vidmand vid- States CertiCash ances with uals, uals, States deand fied and in doU. S. part- politpartposits Forand polit- Postal vault mestic Govnerneradeign ical offiical savbanks justed ships, ern- ships, 2 banks subcers' ments subings and and Dedivi- :hecks, divicorcormand Time sions etc. porapora- sions tions tions Borrowings. Capital account s TOTAL—101 CITIES 1938—October 1939—April May June July August SeptemberOctober 7,005 7,973 8,361 8,460 8,645 8,951 9,643 9,957 425 424 423 447 448 440 477 482 2,446 2,596 2,644 2,727 2,765 15, 688 16,455 16, 796 17,182 17,366 17, 717 2,951 18, 209 3,062 8, 511 16, 16,000 16,259 16,633 17,008 17,168 17,904 18, 277 1,372 1,452 1,470 1,317 1,436 1,331 1,302 428 441 419 406 438 448 411 563 620 581 545 541 532 528 526 5,152 4,974 4,984 4,996 5,006 5,021 5,016 5,040 235 251 229 216 220 210 197 1939—Aug. 30.. Sept. 6... Sept. 13.. Sept. 20.. Sept. 27.. Oct. 4 . . . Oct. 1 1 . . Oct. 1 8 . . Oct. 25... Nov. 1... ' Nov. 8... Nov. 15.. 9,247 9,368 9,686 9,723 9,794 9,826 9,879 10,028 10,094 9,885 9,852 9,698 465 463 489 470 486 471 489 480 487 458 500 475 2,789 2,813 2,950 3,021 3,018 3,034 3,037 3,087 3,090 3,111 3,089 3,166 17,479 17, 599 18,102 17,926 17,988 17, 926 18,296 18,433 18,453 18, 273 18,184 18, 520 1,447 1,366 1,359 1,266 1,334 1,328 1,312 1,248 1,320 1,460 1,481 1,431 394 512 496 391 394 392 357 440 456 510 415 407 528 528 526 528 528 528 526 525 526 525 523 521 5,017 5,016 5,018 5,013 5,018 5,028 5,032 5,043 5,057 5,063 5,067 5,070 224 215 210 207 207 203 205 190 190 181 178 182 141 110 85 60 59 51 49 49 583 578 580 589 597 601 615 596 597 604 599 603 609 611 616 625 628 629 630 18,096 18,040 18, 288 18,175 18, 333 18,306 18,451 18,567 18, 721 18, 556 18, 660 18, 604 18 6,012 6,473 6,530 6,607 6,763 6,991 7,447 7,722 110 116 118 121 127 127 126 123 479 638 639 606 620 652 732 793 3,663 3,695 3,712 3,721 3,716 3,722 3,716 3,719 7,040 7,219 7,459 7,566 7,545 7,711 7,687 7,760 7,729 7,832 7,829 7,997 127 127 127 126 122 123 124 123 123 122 123 122 683 712 720 742 753 762 791 797 820 727 721 711 3,724 3,726 3,714 3,712 3,712 3,714 3,719 3,720 3,722 3,728 3,733 3,731 2,549 2,785 2,814 2,845 2,928 3,052 3,300 3,381 424 561 560 529 540 575 657 702 1,482 1,483 1,488 1,488 1,479 1,482 1,475 1,475 3,112 3,179 3,308 3,359 3,354 3, 3,372 3,377 3,386 3,439 3,415 3,465 613 638 649 666 672 675 698 707 729 651 648 645 1,481 1,479 1,475 1,473 1,474 1,476 1,475 1,475 1,476 1,480 1,480 1,479 NEW YORK CITY 1938—October 1939—April May ___ June July August September.. Otb 3,754 4,651 4,895 4,866 4,995 5,184 5,631 5,701 6,613 7,287 7,467 7,608 7,660 7,905 8,152 8,259 6,972 257 7,348 7,495 304 7,636 280 7,773 225 7,913 304 8,268 249 8,394 240 328 268 274 269 231 274 278 240 1939—Aug. 30 Sept . 6 __ Sept . 13 Sept . 20 . . __ Sept . 27 Oct. 4 Oct. 11 ._ Oct. 18 Oct. 25 Nov Nov,. 8 Nov . 15.... _._ 5,499 5,547 5,699 5,636 5,640 5,651 5,667 5,725 5,761 5,560 5,486 5,449 8,195 8,151 8,195 8,091 8,170 8,210 8,214 8,256 8,356 8,212 8,265 8,256 8,174 8,228 8,347 8,227 8,271 8,225 8,377 8,446 8,526 8,365 8,299 8,393 257 269 214 257 272 239 210 237 330 328 317 230 341 319 223 230 220 198 256 285 315 256 231 8,652 8,764 8,997 9,235 9,255 9,636 9,883 694 1,115 1,148 1,190 1,092 1,132 1,082 1,062 165 160 167 150 175 164 170 171 422 510 496 485 482 481 479 477 4,531 4,391 192 4,406 209 4,416 188 4,417 172 4,424 170 4,415 165 4,425 156 3,716 3,762 3,835 3,939 4,147 4,341 110 116 118 121 127 127 126 122 2,181 2,212 2,224 2,233 2,237 2,240 2,241 2,244 1,139 1,109 1,090 1,052 1,077 1,056 1,073 1,038 1,083 1,130 1,153 1,114 164 171 177 168 164 172 159 184 171 195 159 176 480 479 478 479 480 479 477 476 478 476 474 473 4,421 4,419 4,414 4,414 4,415 4,419 4,421 4,427 4,432 4,435 4,438 4,440 3,928 4,040 4,151 4,207 4,191 4,322 4,315 4,383 4,343 4,393 4,414 4,532 127 127 127 126 122 123 123 122 122 121 122 121 2,243 2,247 2, 239 2,230 2,238 2,238 2,244 2,245 2,246 2,248 2,253 2,252 OUTSIDE NEW YORK CITY 1938—October.... 1939—April May June July August September October 1939—Aug. 30 Sept. 6 Sept. 13 Sept. 20 Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25 Nov. 1 Nov. 8 Nov. 15 . 3,251 3,322 3,466 3,594 3,650 3,767 4,012 4,256 364 368 367 380 383 377 399 402 2,370 9,075 2,514 9,168 2,567 9,329 2,651 9,574 2,688 9,706 2,734 9,812 2,879 10,057 2,989 10, 252 3,748 3,821 3,987 4,087 4,154 4,175 4,212 4,303 4,333 4,325 4,366 4,249 394 386 410 394 406 393 403 403 409 384 415 399 2,717 2,741 2,878 2,947 2,945 2,960 2,966 3,012 3,018 3,039 3,018 3,086 9,901 9,889 10,093 10,084 10,163 10,096 10, 237 10,311 10, 365 10, 344 10, 395 10, 348 9,305 9,371 9,755 9,699 9,717 9,701 9,927 9,908 9,885 10,127 173 166 167 164 163 158 159 153 153 143 141 142 3,463 1 Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection. * U. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits. 1110 FEDERAL RESERVE BULLETIN DECEMBER 1939 CONDITION OF REPORTING MEMBER BANKS IN 101 LEADING CITIES—Continued [In millions of dollars] Loans Total loans and invest- Total ments Federal Reserve district and date (1939) Investments Loans for purchasing Commeror carrying cial, securities inOpen Real Loans Other dusmarto estate Total trial, ket To loans banks loans and paper brokagriers To culand others tural dealers U. S. Government obligations Direct Total Bills Other Guar- securities anNotes Bonds teed BOSTON (6 cities) October 25 _____ _ - 1,193 November 1 1,192 November 8 1,192 November 15 1,192 602 605 605 604 287 287 289 291 64 65 63 63 23 26 24 22 21 21 21 21 81 81 81 81 1 1 1 1 125 124 126 125 591 587 587 588 415 412 412 414 19 19 20 22 56 55 55 56 340 338 337 336 45 45 44 50 131 130 131 124 3,294 3,312 3,295 3,299 1,777 1,786 1,787 1,796 121 123 121 115 471 476 471 467 237 237 227 225 201 201 201 202 23 24 26 29 464 465 462 465 6,173 6,218 6,330 6,418 3,628 3,699 3,749 3,756 411 462 515 541 876 894 903 905 2,341 2,343 2,331 2,310 1,205 1,208 1 220 1,308 1,340 1,311 1 361 1,354 1,150 1 153 1,157 1,163 423 423 425 426 198 198 198 199 26 25 25 25 19 20 21 21 31 31 31 31 55 55 55 55 1 1 1 1 93 93 94 94 727 730 732 737 362 362 362 364 38 38 38 39 324 324 324 325 92 94 95 99 273 274 275 274 1,884 1,881 1,888 1,902 678 677 677 679 258 253 253 254 6 6 6 6 20 20 20 20 25 26 26 26 172 173 173 174 2 3 3 2 195 196 196 197 1,206 1,204 1,211 1,223 810 809 814 818 12 9 10 11 211 211 212 213 587 589 592 594 115 116 118 126 281 279 279 279 685 688 691 698 259 260 261 260 116 117 117 117 13 13 14 14 3 2 3 2 15 15 15 15 39 39 39 39 73 73 73 73 427 428 430 438 312 313 314 317 4 4 4 4 181 182 184 186 127 127 126 127 48 48 49 55 67 67 67 66 610 615 616 622 305 308 310 1 312 165 168 167 172 4 4 5 4 4 4 5 4 12 12 10 11 31 32 32 32 88 87 90 88 305 307 306 310 142 143 143 144 8 8 9 9 38 38 37 40 96 97 97 95 66 68 67 70 97 96 96 96 3,155 3,148 3,142 3,155 880 884 896 904 515 519 534 539 34 33 33 34 31 31 28 30 76 77 77 76 109 109 109 110 115 115 115 115 2,275 2,264 2,246 2,251 1,500 1,490 1,467 1,450 133 127 106 92 437 434 433 432 930 929 928 926 287 288 292 309 488 486 487 492 697 696 697 704 332 335 336 338 200 203 203 204 8 7 8 8 4 4 4 4 13 13 13 13 52 52 52 52 52 53 53 54 365 361 361 366 201 195 195 196 8 3 3 3 54 54 54 55 139 138 138 138 65 67 67 70 99 99 99 100 405 409 409 412 189 193 194 195 101 103 105 106 3 3 3 3 1 1 1 1 8 8 8 7 9 9 9 9 67 69 68 69 216 216 215 217 146 145 146 146 33 33 32 32 113 112 114 114 26 26 26 28 44 45 43 43 660 665 669 678 284 286 287 290 174 175 176 178 17 16 16 17 3 3 3 3 9 10 10 10 26 26 26 26 54 55 55 55 376 379 382 388 193 195 198 199 11 13 13 15 87 83 84 83 95 99 101 101 52 52 52 57 131 132 132 132 534 538 537 541 270 273 274 275 180 182 183 184 2 2 2 2 2 2 2 2 14 14 14 14 22 22 22 22 50 51 51 51 264 265 263 266 155 157 155 156 23 22 22 23 50 53 53 54 82 82 80 79 52 50 50 52 57 58 58 58 2,216 2,213 2,212 2,230 963 965 961 967 321 319 318 322 20 20 20 21 12 14 12 12 49 48 48 48 383 385 385 385 178 178 177 178 1,253 1,248 1,251 1,263 764 764 765 765 84 84 84 84 680 680 681 681 173 170 170 178 316 314 316 320 2,090 2,086 2,080 2,087 558 561 570 576 379 383 395 399 19 18 18 18 28 27 25 26 66 67 67 67 14 14 14 14 52 52 51 52 1,532 1,525 1,510 1,511 1,048 1,040 1,019 1,004 250 250 250 249 669 667 667 666 154 156 158 170 330 329 333 337 NEW YORK (8 cities)* October 25 _ ._ _ 9,467 November 1 __ 9,530 9, 625 November 8 November 15 9,717 PHILADELPHIA (4 cities) October 25 November 1 November 8 November 15 CLEVELAND (10 cities) October 25 _ November 1 November 8 November 15 __ RICHMOND (12 cities) October 25 November 1 November 8 November 15 1 ATLANTA (8 cities) October 25 _ November 1 November 8 November 15 1 1 1 1 CHICAGO (12 cities)* October 25 November 1 November 8 November 15 ST. LOUIS (5 cities) October 25 November 1 _ _ _ _ November 8 November 15 MINNEAPOLIS (8 cities) October 25 November 8 November 15 3 3 3 3 KANSAS CITY (12 cities) October 25 _ November 1 November 8 November 15 _ _ 1 1 1 1 DALLAS (9 cities) October 25 November 1 November 8 November 15 SAN FRANCISCO (7 cities) October 25___ November 1 November 8 November 15 1 1 1 CITY OF CHICAGO* October 25 November 1 November 8 _ November 15 129 123 102 89 * Separate figures for New York City are shown in the immediately preceding table, and for the city of Chicago in this table. The figures for the New York and Chicago districts, as shown in this table, include New York City and Chicago, respectively. 1111 FEDERAL RESERVE BULLETIN DECEMBER 1939 CONDITION OF REPORTING MEMBER BANKS IN 101 LEADING CITIES—Continued [In millions of dollars] Time deposits, except interbank Demand deposits, except interbank ReBalDeserves Indiances mand vid- States Certiwith Fed- Cash with uals, and fied dedoeral in posits part- polit- and Reical offivault mestic ad- 1 nerbanks justed ships, subserve cers' banks and divi- checks, cor- sions etc. porations Federal Reserve district and date (1939) Interbank deposits Domestic Indibanks vid- States uals, and part- polit- Postal U.S. Forical savGov- nereign ern-2 ships, sub- ings 2 banks and diviDement cor- sions mand Time porations CapBorital rowacings counts BOSTON (6 cities) October 25 November 1 November 8. November 15 494 490 484 458 144 141 144 143 160 164 168 173 1,195 1,196 1,201 1,180 1,132 1,128 1,116 1,128 112 134 134 115 19 21 17 24 13 13 13 13 234 233 233 233 3 3 3 3 5,903 5,692 5,622 5 579 97 92 106 95 192 199 201 214 8,966 8,830 8,905 8,893 9,014 8,861 8,794 8 888 379 479 494 485 304 336 273 250 67 67 68 67 992 995 997 998 49 47 45 48 420 423 448 431 19 17 20 19 218 220 220 225 920 925 956 940 934 942 946 945 46 47 75 73 9 12 6 10 52 52 52 52 272 272 273 273 8 8 8 8 519 535 520 512 46 43 46 45 354 357 352 362 1,304 1,314 1,312 1,310 1,252 1,277 1,263 1,297 119 120 120 115 17 19 15 18 42 42 42 42 710 711 710 711 19 18 18 18 187 185 196 185 23 20 23 20 211 218 216 217 485 478 489 481 483 480 490 497 41 43 40 38 10 12 9 12 28 28 28 28 198 199 198 198 3 3 3 3 124 119 125 120 14 12 14 12 208 206 206 210 391 387 391 388 374 373 374 390 61 61 61 60 4 5 5 4 41 39 39 39 181 181 182 182 7 7 7 7 1,424 1,414 1,417 1,386 74 71 75 74 545 546 538 552 2,639 2,611 2,598 2,585 2,474 2,450 2,435 2,501 305 298 288 279 39 41 36 34 105 105 104 104 917 919 921 922 214 220 231 224 12 11 13 11 184 187 189 190 476 474 485 479 500 493 498 511 31 32 33 34 6 7 6 6 18 18 17 17 188 188 188 188 97 99 101 97 7 6 7 7 109 117 120 116 303 308 309 307 270 269 271 279 57 64 60 60 7 7 6 6 1 2 2 1 119 119 119 119 196 189 186 189 16 14 16 15 344 336 331 340 541 532 527 531 530 524 522 548 65 66 60 59 10 10 10 11 22 22 22 22 142 142 142 142 134 133 140 135 12 10 12 11 271 277 270 285 464 464 462 469 452 445 444 464 42 48 51 48 10 11 9 9 30 30 30 30 382 386 382 382 23 21 24 23 294 284 278 282 1.037 L, 037 ,025 ,041 1,038 1,031 1,031 1,072 62 68 65 65 21 29 23 23 1,128 1,127 1,133 1,103 41 40 42 42 246 247 242 243 ,826 L, 818 L, 811 ] ,792 1,729 1,720 1,712 1,746 187 183 179 172 23 23 20 18 _ 1 1 1 1 324 331 329 333 36 27 24 19 1 1 1 245 246 246 246 NEW YORK (8 cities)* October 25 November 1 November 8 November 15 _ 3,461 3,514 3,490 3,543 17 17 17 17 730 653 649 647 1 598 1,602 1,603 1 602 1 1 1 1 393 399 399 409 12 12 12 12 13 8 8 7 223 222 222 222 2 2 2 2 400 402 394 411 39 39 39 39 1 1 1 2 373 374 374 374 295 305 308 314 6 6 6 6 1 1 1 1 97 96 97 97 2 2 2 2 273 274 277 284 3 3 3 3 1 1 2 2 94 94 94 94 22 22 22 22 6 6 6 6 1,137 1,148 1,151 1,186 10 9 10 9 17 13 13 12 405 408 409 408 3 3 3 3 2 2 2 2 336 345 350 356 6 6 6 6 1 95 95 95 95 1 1 1 1 142 147 152 150 3 3 3 3 1 1 1 1 59 59 59 59 3 3 3 3 1 1 1 1 418 415 417 434 7 7 7 7 128 128 128 128 8 8 7 8 1 1 261 267 273 279 107 107 106 106 976 976 976 976 65 59 59 59 60 60 60 60 479 480 480 481 20 20 20 20 PHILADELPHIA (4 cities) October 25 November 1__ November 8 November 15 _ CLEVELAND (10 cities) October 25 . November 1 November 8 November 15 RICHMOND (12 cities) October 25 November 1 __ November 8 November 15 ATLANTA (8 cities) October 25 November 1 November 8 November 15 CHICAGO (12 cities)* October 25 . . . November 1 November 8 ._ November 15 __ _ ST. LOUIS (5 cities) October 25 November 1_ November 8 November 15 MINNEAPOLIS (8 cities) October 25 November 1__ _ November 8 November 15. ._ _ KANSAS CITY (12 cities) October 25 November 1 November 8_ . . November 15 _ _ 102 102 102 102 DALLAS (9 cities) October 25, . November 1_ . _ November 8 November 15 _ __ SAN FRANCISCO (7 cities) October 25 November 1_ November 8 November 15 CITY OF CHICAGO* October 25 November 1 November 8 November 15 289 285 289 298 3 3 3 3 867 871 874 898 *1 See note on preceding page. Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection. 2 U. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits. 86 86 87 87 20 20 20 20 20 22 21 20 345 344 345 345 16 12 12 10 266 269 269 269 1112 FEDERAL RESERVE BULLETIN DECEMBER 1939 COMMERCIAL PAPER, ACCEPTANCES, AND BROKERS' BALANCES COMMERCIAL PAPER AND BANKERS' ACCEPTANCES OUTSTANDING [In millions of dollars] Dollar acceptances outstanding End of month By holders Commercial paper outstand- Total outstand- ing i ing Held by accepting banks Own bills Total 1938—September October November December _ 1939—January February March April May June July August September _ October -- - - By classes Federal Reserve banks Held by Bills bought 212 213 206 187 261 270 273 270 221 223 222 212 129 130 124 121 92 93 98 91 195 195 191 192 189 181 194 201 209 205 255 248 245 238 247 245 236 235 216 221 204 198 191 189 192 191 188 191 177 179 122 122 117 118 124 122 119 128 115 111 82 76 74 72 68 69 69 63 62 67 For own account Based on ex- Dollar exports from change on Based on goods stored in or shipped between points in For ac- Held count of by foreign others correspondents ports into U. S. 40 46 51 58 89 94 94 95 57 57 59 60 2 3 56 59 59 57 57 56 57 56 52 50 54 49 55 53 48 44 39 42 89 87 87 86 82 81 75 79 78 85 57 57 58 56 51 45 41 40 40 40 2 52 48 42 38 36 39 39 40 43 46 55 54 56 57 59 60 61 59 36 32 (2) (2) (2) im U . S. Foreign countries U.S. 3 3 2 2 1 19 20 19 18 18 18 i As reported by dealers; includes some finance company paper sold in open market. a Less than $500,000. Back figures—See Annual Report for 1937 (table 70). CUSTOMERS' DEBIT BALANCES, MONEY BORROWED, AND PRINCIPAL RELATED ITEMS OF STOCK EXCHANGE FIRMS CARRYING MARGIN ACCOUNTS [Member firms of New York Stock Exchange. Ledger balances in millions of dollars] Debit balances End of month Credit balances Customers' credit balances i Debit Customers' balances in debit partners' balances investment (net) i and trading accounts Debit balances in firm investment and trading accounts Cash on hand and in banks Money borrowed 2 Free Other (net) Other credit balances In In firm partners' In investinvestcapital ment and ment and accounts trading trading (net) accounts accounts June September December 1,549 1,489 1,363 985 61 55 48 34 175 161 128 108 223 214 239 232 1,172 1,217 1,088 688 346 266 256 278 115 92 96 85 29 25 26 26 18 13 12 10 419 397 385 355 1938—March . June September October November December 831 774 823 905 939 991 29 27 29 32 30 32 95 88 76 85 78 106 215 215 213 196 189 190 576 495 559 617 662 754 239 258 257 270 252 247 81 89 68 73 65 60 25 22 20 20 20 22 9 11 7 315 298 300 304 303 305 1939—January _. February March April May June -July August September ___ __ __ _ October _ 971 967 953 831 828 834 839 792 856 894 34 29 27 26 26 25 24 22 20 21 75 83 84 83 76 73 84 71 64 72 192 168 174 190 183 178 183 202 217 200 713 709 699 579 561 570 589 556 520 577 235 222 225 236 230 230 238 235 305 289 60 62 59 60 69 70 67 58 87 76 22 20 20 20 21 21 20 20 22 21 12 5 9 1937—March 8 8 5 7 6 6 6 6 11 9 298 294 294 290 284 280 278 275 283 284 1 Excluding balances with reporting firms (1) of member firms of New York Stock Exchange and other national securities exchanges and^ (2) of firms' own partners. 2 Includes both money borrowed from banks and trust companies in New York City and elsewhere in the United States and also money borrowed from other lenders (not including member firms of national securities exchanges). NOTE.—For explanation of thesefiguressee "Statistics on Margin Accounts" in BULLETIN for September 1936. The article describes the method by which the figures are derived and reported, distinguishes the table from a "statement of financial condition," and explains that the last column is not to be taken as representing the actual net capital of the reporting firms. Backfigures.—SeeBULLETIN for March 1938, p. 196, and (for data in detail) Annual Report for 1937 (table 69). 1113 FEDERAL RESERVE BULLETIN DECEMBER 1939 FEDERAL RESERVE BANK DISCOUNT RATES [Per cent per annum] Rediscounts and advances under sections 13 and 13a of the Federal Reserve Act except last paragraph of Section 13 Federal Reserve Bank Secured by direct and eligible guaranteed obligations of the U . S . Rate Nov. Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis MinneapolisKansas C i t y Dallas San Francisco 1 1 IK l l IK In effect beginning- Advances under Section 10 (b) of the Federal Reserve Act All other In effect beginning- Rate Nov. 28 Sept. 1, 1939 Aug. 27, 1937 Sept. 4, 1937 M a y 11, 1935 Aug. 27, 1937 Sept. 16, 1939 Sept. 1, 1939 Sept. 21, 1939 Aug. 24, 1937 Sept. 16, 1939 Sept. 16, 1939 Sept. 3, 1937 Advances secured by direct obligations of the United States (last paragraph of Section 13 of the Federal Reserve Act) VA VA IK VA IK IK VA Sept. 1, 1939 Aug. 27, 1937 Sept. 4, 1937 M a y 11, 1935 Aug. 27, 1937 Aug. 21, 1937 Aug. 21, 1937 Sept. 2, 1937 Aug. 24, 1937 Sept. 3, 1937 Aug. 31, 1937 Sept. 3, 1937 To banks Rate Nov. 28 In effect beginningSept. 2, 1937 Oct. 10, 1935 Sept. 4, 1937 Oct. 19, 1935 Sept. 10, 1937 Aug. 21, 1937 Aug. 21, 1937 Sept. 2, 1937 Aug. 24, 1937 Sept. 3, 1937 Aug. 31, 1937 Sept. 17, 1937 Rate Nov. 28 1 1 1 Wi IK l l IK To others Rate In effect beginning- Nov. 28 Sept. 1, 1939 Aug. 25, 1939 Sept. 1, 1939 Sept. 1, 1939 Sept. 1, 1939 Sept. 16, 1939 Sept. 1, 1939 Sept. 16, 1939 Sept. 1, 1939 Sept. 16, 1939 Sept. 16, 1939 Sept. 1, 1939 In effect beginningApr. 29, 1938 Feb. 8, 1934 Sept. 1, 1939 May 11, 1935 Feb. 19, 1934 Apr. 23, 1938 Oct. 16, 1933 Feb. 23, 1935 Oct. 8, 1938 Apr. 16, 1938 Apr. 16, 1938 Oct. 19, 1933 i 2% per cent to lenders other than banks. NOTE.—Rates applicable to United States Government securities' repurchase agreements are as follows: New York, 1 per cent; Cleveland, Kansas City, and Dallas, VA per cent. Back figures.—See Annual Report for 1937 (table 40). FEDERAL RESERVE BANK BUYING RATES ON ACCEPTANCES FEDERAL RESERVE BANK RATES ON INDUSTRIAL ADVANCES [Per cent per annum] Rates in effect, Nov- 28, 1939, on advances and commitments under Sec. 13b, of the Federal Reserve Act as amended June 19, 1934. [Per cent per annum except as otherwise specified] Rate in effect on Nov. 28 Maturity Previous rate In effect beginning— Oct. 20, 1933 __.do __.do _._do ... —do ___do ___do _- 1-15 days i__ 16-30 days___ 31-45 days... 46-60 days___ 61-90 days... 91-120 days.. 121-180 days. i This rate also applies to acceptances bought under repurchase agreements, which agreements are always for a period of 15 days or less. NOTE.—Minimum buying rates at the Federal Reserve Bank of New York on prime bankers' acceptances payable in dollars; higher rates may be charged for other classes of bills. The same minimum rates apply to purchases, if any, made by other Federal Reserve banks. Back figures.—See Annual Report for 1937 (table 41). MAXIMUM RATES ON TIME DEPOSITS Maximum rates that may be paid by member banks as established by the Board of Governors under provisions of Regulation Q. [Per cent per annum] Nov. 1, 1933 Feb. 1, 1935 to to Jan. 31, 1935 Dec. 31, 1935 In effect beginning Jan. 1, 1936 Savings deposits Postal Savings deposits Other time deposits payable in: 6 months or more 90 days to 6 months Less than 90 days NOTE.—Maximum rates that may be paid by insured nonmember banks as established by the Federal Deposit Insurance Corporation, effective February 1, 1936, are the same as those in effect for member banks. In some States the maximum rates established by the Board and the Federal Deposit Insurance Corporation are superseded by lower maximum rates established by State authority. Federal Reserve Bank Boston New York PhiladelphiaCleveland Advances to financing institutions— Advances direct to Commitindustrial On porments tion for or comto make On re- advances mercial or- which maining ganizations instituportion tion is obligated 3^-6 4-6 4-6 Richmond Atlanta Chicago St. Louis 5-6 5-6 Minneapolis.. Kansas City— Dallas San Francisco 6 4-6 5-6 5-6 4-5 1-2 H-2 4-6 5 5-6 4 1-2 0) 4-6 4 4 3-4 5-6 4-5 y2 1-2 y2 H-2 1 Authorized rate 1 per cent above prevailing discount rate. 2 Same as to borrower but not less than 4 per cent. 3 Flat charge. Back figures—See Annual Report for 1937 (table 40). MEMBER BANK RESERVE REQUIREMENTS [Per cent of deposits] Classes of deposits and banks On net demand deposits: * Central reserve city. Reserve city Country June 21, Aug. 16, Mar. 1, May 1, Apr. 16, 19171936193719371938Aug. 15, Feb. 28, Apr. 30, Apr. 15, and 1936 1937 1937 after 1938 15 10K 17K 12M 17K 12 On time deposits: All member banks__ 1 See footnote to table on p. 1102 for explanation of method of computing net demand deposits. 1114 FEDERAL RESERVE BULLETIN DECEMBER 1939 MONEY RATES AND BOND YIELDS OPEN-MARKET RATES IN NEW YORK CITY COMMERCIAL LOAN RATES [Per cent per annum] Prevailing rate o n - Year, month, or week Prime commercial paer, 4 to 6 months AVERAGE OF RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES [Per cent per annum! Average rate o n - AverU . S . Preasage ury bills yield on Prime Stock Stock exU. S. exbankTreasers' change change call New 91ury accept- time issues day 3-to-5 ances, loans, loan reofdealyear QO 90 yu res' new- fered 1934 average notes days days als Iwithin quo1935 average 1936 average. period1 tation Total 19 cities 1937 average 1938 average 1936 average___ 1937 average. .1938 average.__ .75 .95 .81 1938— Oct. Nov Dec. h 1939—Jan. Feb Mar April May June July Aug Sept Oct y2-% Week ending: Oct. 2 8 . . . . Nov. 4 Nov. 11.... Nov. 18_— 1.16 1.25 1.25 .91 1.00 1.00 .143 .447 .053 .17 .28 .07 /l6 1J4 IX 134 1.00 1.00 1.00 .023 .024 .007 .05 .04 .03 Via Vi« Via Vie Vie Vie Vie Vie Vie Vie i1^ IX IX IX 1M IX IX IX IX IX 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 .002 .004 .005 .019 .006 .006 .017 .046 .102 .028 .03 .03 .03 .03 .03 .03 .04 .05 .14 .05 .15 .43 .44 A-zA 7 /l6 Via 5 A 7 VT-Y% l A-bA VL-*A Vs-H A-H 5 Vsr3A 5 Z A- 4 5 Vie Vie Vie Vie A-H % IX IX IX IK 1.00 1.00 1.00 1.00 .028 .017 .020 .018 _.. 1.11 1.40 1938—January February .83 March April .68 May .71 June .67 July... August .65 September .63 October .51 November .50 December .42 _ .39 .45 .48 1939—January February 1.07 Quarterly Figures: .77 1938—September .05 .05 .05 .05 .65 .69 .68 .63 1939—March.. June September _ New York City 7 other 11 SouthNorthern and ern and Western Eastern cities cities 3.45 2.93 2.68 2.59 2.53 2.45 1.76 1.72 1.73 1.69 3.71 3.39 3.04 2.88 2.75 4.32 3.76 3.40 3.25 3.26 2.60 2.49 2.48 2.48 2.48 2.56 2.57 2.52 2.53 2.57 2.49 2.60 1.70 1.70 1.65 1.70 1.70 1.70 1.70 1.67 1.70 1.70 1.70 1.70 2.92 2.65 2.64 2.60 2.64 2.78 2.78 2.71 2.74 2.90 2.68 2.95 3.28 3.21 3.28 3.25 3.20 3.31 3.35 3.28 3.26 3.21 3.20 3.63 2.64 2.52 1.73 1.70 2.97 2.69 3.32 3.36 2.65 2.00 2.75 3.25 2.95 2.91 2.68 2.13 2.15 2.04 3.05 3.05 2.78 3.77 3.62 3.31 i Quarterly figures are on revised basis and are therefore not strictly i Series comprises 273-day bills to October 15, 1937, bills maturing comparable with the series of annual and monthly figures. For figures about March 16, 1938, from October 22, to December 10,1937, and 91-day beginning January 1928 and description of figures see pp. 963-969 of the November 1939 BULLETIN. bills thereafter. Back figures.—See Annual Report for 1937 (tables 43 and 44). Figures for 91-day Treasury bills available on request. BOND YIELDS 1 [Per cent per a n n u m ] U. S. Treasury 2 Year, m o n t h , or week N u m b e r of issues _ _ _ . 1936 average 1937 average 1938 average Week ending: Oct. 28 Nov. 4 Nov 11 Nov. 18 _ By ratings Aa Aaa industrial Baa A By groups Kanroad Public utility 2-6 15 120 30 30 30 30 40 40 40 . . 2.65 2.68 2.56 3.07 3.10 2.91 3.87 3.94 4.19 3.24 3.26 3.19 3.46 3.46 3.56 4.02 4.01 4.22 4.77 5.03 5.80 3.50 3.55 3.50 4.24 4.34 5.21 3.88 3.93 3.87 2.48 2.50 2.49 2.47 2.44 2.34 2.30 2.17 2.13 2.16 2.21 2.65 2.60 2.82 2.74 2.75 2.70 2.70 2.67 2.75 2.66 2.63 2.65 2.75 3.29 3.08 4.03 3.95 3.95 3.86 3.81 3.74 3.84 3.78 3.71 3.66 3.67 3.95 3.83 3.15 3.10 3.08 3.01 3.00 2.99 3.02 2.97 2.92 2.89 2.93 3.25 3.15 3.53 3.46 3.42 3.32 3.26 3.22 3.22 3.16 3.13 3.08 3.11 3.49 3.35 4.08 4.02 4.02 3.97 3.94 3.87 3.97 3.92 3.86 3.83 3.80 4.05 3.94 5.36 5.23 5.27 5.12 5.05 4.89 5.15 5.07 4.91 4.84 4.85 5.00 4.88 3.43 3.39 3.40 3.31 3.29 3.29 3.35 3.30 3.23 3.18 3.21 3.57 3.43 4.94 4.83 4.82 4.70 4.63 4.46 4.66 4.60 4.47 4.42 4.41 4.58 4.51 3.73 3.65 3.63 3.57 3.52 3.48 3.51 3.45 3.42 3.39 3.40 3.70 3.57 2.51 2.52 2.51 2.47 2.85 2.82 2.74 2.68 3.77 3.75 3.71 3.70 3.09 3.07 3.01 2.99 3.27 3.23 3.19 3.15 3.88 3.85 3.81 3.78 4.84 4.83 4.85 4.87 3.34 3.31 3.26 3.24 4.46 4.46 4.46 4.45 3.51 3.47 3.43 3.41 _ _. _ Total ___. 1938—October N o v e m b e r . . __ December 1939—January February March April May June . July August September October Corporate4 Municipal 3 1 Monthly and weekly data are averages of daily figures, except for municipal bonds, which are based on Wednesday figures. 2 Average of yields of all outstanding bonds due or callable after 12 years; see BULLETIN for December 1938, pp. 1045-1046 for description. Figure for week ending October 21 should be revised to 2.54. 3 Standard Statistics Co. * Moody's Investors Service, week ending Friday. Because of limited number of suitable issues, the industrial Aaa group has been reduced from 10 to 4, the industrial Aa group from 10 to 3, the industrial A group from 10 to 8, and the railroad Aaa group from 10 to 5. Back figures.—See Annual Report for 1937 (table 80); for U. S. Treasury bonds, see pp. 1045-1046 of BULLETIN for December 1938. DECEMBER 1115 FEDERAL RESERVE BULLETIN 1939 BOND PRICES1 STOCK MARKET Corporate Year, month, or date U. S. Treasury 2 1938—October November December 1939—January February March April May June July August September October ._ ___ Total Stock prices 1 Indus- Rail- Utility trial road 2-6 15 60 20 20 103. 7 101.7 103.4 110.8 110.3 113.7 97.5 93.4 78.9 92.2 90.1 82.9 94.7 89.6 58.6 Number of issues 1936 average 1937 average. 1938 average Municipal 3 3 105.4 100.4 95.3 104.3 104.0 104.1 104.4 104.8 106.0 106.6 108.3 109.1 108.9 108.2 101.9 102.6 115.2 116.6 116.5 117.3 117.3 117.9 116.4 118.1 118.6 118.3 116.5 107.1 110.7 81.8 82.1 81.1 81.9 82.1 83.1 79.4 80.2 81.4 81.6 81.0 80.9 82.9 86.8 86.9 86.0 86.2 86.4 87.1 83.8 84.8 86.2 86.3 85.8 85.0 86.4 59.9 60.2 58.6 59.7 59.0 60.9 54.5 54.8 56.2 56.4 55.5 59.0 61.6 99.3 98.7 99.7 100.7 101.3 99.7 101.0 101.6 102.1 101.7 98.6 100.5 104.2 104.0 103.9 104.4 114.6 115.1 116.6 117.7 83.4 83.0 83.2 83.1 87.1 87.0 87.0 87.1 61.9 60.5 60.7 60.2 101.1 101.5 101.8 101.9 Oct. 25 Nov. 1 Nov. 8 Nov. 15 i M o n t h l y data are averages of daily figures except for municipal bonds, which are averages of Wednesday figures. a Average prices of all outstanding bonds due or callable after 12 years, based on quotations from Treasury Department; see BULLETIN for December 1938, p p . 1045-1046 for description. Prices expressed n decimals. 3 Prices derived from average yields> as computed b y Standard Statistics Co. Back figures.—See Annual Report for 1937 (table 79); for U. S. Treasury bonds, see p p . 1045-1046 of BULLETIN for December 1938. Year, month, or date Preferred 2 Volu m e of trading 3 Common (index, 1926=100) Total Industrial Railroad Utility 20 420 348 40 1936" average 1937 average 1938 average 138.9 136.2 135.6 111 112 83 127 131 99 104 95 73 1,824 1,519 1,100 1938—October N o v e m b e r . __ December 1939—January February March April May June July August September. __ October 140.4 142.3 141.7 141.7 141.8 142.3 140.4 141.8 143.9 143.7 142.3 136.2 137. 7 91 95 92 92 90 92 82 83 86 86 86 92 95 110 114 111 109 106 108 96 97 101 101 101 109 113 77 81 78 81 84 86 80 82 85 85 87 84 86 1,889 1,355 1,195 1,114 708 999 964 548 507 821 706 2,595 1,050 Oct. 25 Nov. 1 Nov. 8 Nov. 15 139.4 139.7 139.9 140.3 97 95 94 94 115 112 111 110 88 87 87 87 1,306 1,209 1,157 729 N u m b e r of issues __ 1 Standard Statistics Co. Monthly data are averages of Wednesday figures. 2 Average prices of industrial high-grade preferred stocks, adjusted to a $73 annual dividend basis. Average daily volume of trading in stocks on the New York Stock Exchange, in thousands of shares. Weekly figures are averages for the week ending Saturday. Back figures—Fov stock prices,'see Annual Report for 1937 (table 79). CAPITAL ISSUES [In millions of dollars] ] ?or Year or month 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 . 1938—Oct Nov Dec 1939—Jan Feb Mar Apr May June July Aug Sept Oct Total (new and refunding) 11, 513 7,619 4,038 1,751 1,063 2,160 4,699 6,214 3,937 '4,446 For refunding new capital Domestic Domestic Total Total (r\r\ (, domestic and foreign) Total State and municipal agencies » Total (doFor- mestic and eign * Total forBonds eign) and Stocks Corporate Federal notes 10,093 9,420 6,912 6,004 3,095 2,860 1,197 1,165 720 708 1,386 1,386 1,457 1,409 1,972 1,949 2,138 2,094 2,359 2,323 1,418 1,434 1,235 762 483 803 855 735 712 971 0 87 75 77 64 405 150 22 157 481 8,002 4,483 1,551 325 161 178 404 1,192 1,225 872 2,078 2,980 1,239 305 40 144 334 839 817 807 5,924 1,503 311 20 120 35 69 352 408 65 167 196 241 200 378 162 '143 117 283 318 '83 41 336 103 152 126 76 44 105 63 94 253 66 57 15 42 0 0 55 118 310 4 2 2 0 203 0 10 276 64 43 60 6 24 53 '78 '22 30 '50 '26 16 18 62 37 44 5 17 43 '48 18 22 40 '23 14 14 2 6 16 1 7 10 31 3 9 '10 3 2 4 766 386 '514 257 561 240 '357 ' 1 , 313 605 '590 '450 174 740 167 226 241 200 398 162 '144 117 293 318 '103 41 336 State and municipal 1,387 673 1,420 706 527 908 893 944 235 32 554 498 12 283 343 765 774 0 48 3,242 3,216 23 4,242 4,123 1,680 44 1,799 35 '2,087 '2,060 13 53 21 87 37 136 365 382 191 129 599 135 '271 57 163 75 161 1,180 312 '272 '332 133 402 2 6 15 27 10 13 11 7 39 18 13 8 10 0 31 0 0 20 0 (*) 0 10 0 20 0 0 599 160 '273 57 163 78 213 1,195 312 '272 '347 133 404 Federal agencies 2 Corporate Total Foreign^ Bonds and Stocks notes 542 0 1,374 474 461 0 51 821 789 93 319 315 26 187 219 312 317 312 1,782 987 1,864 353 3,387 3,187 856 281 1,209 665 ' 1 , 265 ' 1 , 234 833 23 32 4 32 0 81 200 352 31 33 179 51 56 60 9 26 119 119 28 274 89 '225 10 101 46 106 131 249 '143 '292 74 157 1 18 11 (') 35 (') 23 20 2 '38 9 0 0 25 3 0 0 3 53 16 0 0 15 0 2 323 22 20 19 17 15 21 1,021 21 74 18 51 235 274 108 '235 10 136 47 129 151 252 '180 '301 74 157 * Revised. i Includes issues of noncontiguous U. S. Territories and Possessions. i Includes publicly-offered issues of Federal credit agencies, but excludes direct obligations of U. S. Treasury. « Less than $500,000. Source.—For domestic issues, Commercial and Financial Chronicle; for foreign issues, U.S. Department of Commerce. Monthly figures subject to revision. Backfigures.—SeeAnnual Report for 1937 (table 78). 1116 FEDERAL RESERVE BULLETIN DECEMBER 1939 TREASURY FINANCE UNITED STATES GOVERNMENT DEBT VOLUME AND KIND OF DIRECT OBLIGATIONS [On basis of daily statements of United States Treasury. In millions of dollars] Noninterestbearing Interest-bearing ]Publicly-offered» Total gross E n d of m o n t h debt Bonds Total interest Total Prewar bearing 1932—June 1933—June 1934—June 1935—June . 1936—June 1937—June 1938—June ._ .. _ 1938—October November . December 1939—January . February March April May June . __ July August _ September October _. _ _ _ 19,487 22, 539 27,053 28, 701 33, 779 36, 425 37,165 19,161 22,158 26,480 27, 645 32, 989 35, 800 36, 576 38, 423 38,603 39,427 39, 631 39, 859 39,985 40,063 40,282 40, 440 40, 661 40, 891 40, 858 41, 036 37,897 38,068 38,899 39,097 39,326 39,442 39, 525 39, 751 39, 886 40,114 40, 351 40, 342 40, 526 Treas- U. S. ury* savings Notes Bills 616 954 1,404 2,053 2,354 2,303 1,154 105 92 118 156 1,071 926 868 1,302 1,303 1,306 1,309 1,310 1,311 1,309 1,308 1,308 1,309 1,307 1,306 1,405 826 827 827 826 825 827 826 825 839 833 829 795 791 618,816 •21, 782 626,006 26, 910 31, 297 33, 734 33,463 753 753 753 753 79 79 79 13,460 13,417 15,679 14,019 17,168 19, 936 21,846 62 316 800 1,238 1,261 4,548 6,653 10,023 11,381 10, 617 9,147 34, 527 34, 559 35, 327 35,469 35, 533 35, 579 35, 627 35,680 35, 715 35,798 35,862 35,886 36,026 79 79 79 79 79 79 79 79 79 79 79 79 79 22, 712 22,712 24,005 24,005 24,005 25, 218 25, 218 25, 218 25, 218 25, 218 25, 218 25, 218 25, 218 1.367 L,399 ,442 L, 580 L, 643 L, 701 L 751 l', 806 1,868 1,949 2,015 2,051 2,092 9,067 9,067 8,496 8,496 8,496 7,270 7,270 7,270 7,243 7,243 7,243 7,232 7,232 r AdSocial justed seservice3 curity4 issues issues All others Matured 19 579 1,601 240 284 356 580 601 560 644 60 66 54 231 169 119 141 266 315 518 825 620 506 447 1,807 1,937 2,002 2,046 2,207 2,257 2,294 2,442 2,511 2,542 2,722 2,746 2,796 736 745 743 756 761 779 780 805 820 941 938 915 913 94 105 101 109 112 125 122 117 142 140 133 112 109 433 431 427 425 421 419 416 414 411 408 406 404 401 Other J.VJ. 1 Excludes postal savings bonds, formerly sold to depositors in the Postal Savings System. 2 Includes Liberty bonds. * Includes adjusted service bonds of 1945 and special issues of adjusted service bonds and of notes to Government Life Insurance Fund series and of certificates to the adjusted service fund. * Includes special issues to old-age reserve account, unemployment trust fund, and railroad retirement account. * Includes postal savings bonds and special issues to retirement funds, to Postal Savings System and to Federal Deposit Insurance Corporation. * Includes certificates of indebtedness not shown separately: 1932—$2,726,000,000; 1933—$2,108,000,000; 1934—$1,517,000,000. MATURITIES OF PUBLICLY-OFFERED DIRECT OBLIGATIONS, OCTOBER 31,1939 FULLY GUARANTEED OBLIGATIONS, BY AGENCIES i [In millions of dollars] [In millions of dollars] Maturing D a t e maturing or callable Bonds Total Bills Notes U . S. Savings 1939—Nov. 1-Dec. 31 1940—Jan. 1-Mar. 31 Apr. 1-June 30 J u l y 1-Sept 30 Oct. 1-Dec. 31 1941 1942 1943 _ 1944 1945 1946 1947 1948 1949. _ 1950 1951 1952 1953 1954 1955 1956 1958 1959 1960 1961 1963 1965 Total Bonds callable * 1,430 1,880 738 904 501 526 1,378 738 737 1,385 1,001 1,050 416 737 2.219 1,001 1,948 416 2,118 1,841 2,820 1,997 1,481 Other 834 898 176 323 422 510 2 662 1,941 1, 519 2,399 1,487 819 1,223 2,436 1,786 2,663 755 489 1,223 2,436 1,786 2,663 755 489 982 2,611 50 919 1,485 982 2,611 50 919 1,485 36,026 1,405 7, 232 2,092 25, 297 1934—June.. Dec... 1935—June.. Dec— 1936—June.. 1 Dec... 353 1937—June.. Dec.._ 1938—June.. 1,379 1,855 2,555 1,755 2,372 1,460 1,674 2,278 1,186 2,382 2,611 982 919 1,485 50 25, 297 i Excludes U. S. savings bonds. Other bonds in the amount of $2,577,000,000 not callable prior to maturity are shown as of date of maturity. 2 Includes unclassified U. S. savings bonds. End of Month 1938—Oct... Nov. _ Dec... 1939—Jan. _. Feb... Mar. _ Apr... May.. June.. July.. Aug... Sept. _ Oct.._ Total Federal Home ReconComFarm Owners' struction modity Mortgage Loan Finance Credit Corpora- CorporaCorpora- Corporation tion tion tion 2 681 3,063 4,123 4,494 4,718 4,662 4,665 4,645 4,853 312 980 1,226 1,387 1,422 1,422 1,422 1,410 1,410 134 1,834 2,647 2,855 3,044 2,988 2,987 2,937 2,937 235 249 250 252 252 252 255 297 299 206 5,001 4,993 4,992 4,987 5,410 5,410 5,410 5,409 5,450 5,480 5,583 5, 456 5,448 1,395 1.388 ,388 ,383 ,381 1,381 ,380 ,379 .379 1,379 1,379 1,279 1,279 2,888 2,888 2,888 2,888 2,888 2,888 2,888 2,888 2,928 2,958 2,858 2,831 2,823 511 511 509 509 819 819 819 820 820 820 820 820 820 206 206 206 206 206 206 206 206 206 206 409 409 409 U. S. Housing Authority U4 114 114 114 114 114 114 114 114 i Principal amount of obligations guaranteed as to interest and principal. Excludes obligations held by U. S. Treasury and reflected in the public debt. The total includes guaranteed debentures of the Federal Housing Administrator, amounting to $2,933,000 on October 31, 1939. 2 Excludes obligations guaranteed as to interest only. For August 1939 and subsequent months includes matured bonds not presented for retirement amounting to $92,000,000 on October 31. 1117 FEDERAL RESERVE BULLETIN DECEMBER 1939 SUMMARY OF TREASURY OPERATIONS [On basis of daily statements of United States Treasury. In millions of dollars] General and special accounts Expenditures * Receipts General Period Total Other In- Social inter- All come securnal other ity taxes taxes 2 revenue* National Total Inter- deest on fense and debt Vet- All other Recovery and relief or deTrust Increase crease during acperiod counts, etc 7 Excess excess of receipts of reTrans- (+)or ceipts Reor volv- fers to ex- (+) extrust pendiing pendifunds accts., tures tures General fund 7 Gross(net) e etc. 6 (-) (-) balance debt erans'4 Adm. Fiscal year ending: 5,294 June 1937 June 1938 6,242 June 1939. 5,668 4 months ending: Oct. 1937 Oct. 1938 Oct. 1939 1938—October November. __ December 1939—January _ February March April May June July August September. __ October 2,158 2,635 2,182 253 755 740 2,187 2,285 2,238 697 567 507 8,442 7,626 9,210 866 926 941 1,436 1,556 1,627 1,994 2,178 2,761 3,073 2,238 3,105 204 121 92 868 - 3 , 1 4 9 607 - 1 , 3 8 4 685 - 3 , 542 +374 +306 +890 - 1 2 8 +2,646 -338 +740 +622 +3, 275 1,983 1,841 1,768 634 618 445 216 200 217 897 847 916 237 176 190 2,518 2,965 3,177 260 243 253 507 546 632 703 910 696 958 56 37 26 296 -534 271 - 1 , 1 2 4 336 - 1 , 4 0 9 +125 +219 +122 +532 +353 +1, 258 -925 +597 332 382 704 308 417 737 268 397 613 308 420 719 322 41 36 481 48 56 506 40 43 355 42 37 328 37 34 129 3 43 182 4 30 124 25 36 119 27 36 209 175 181 173 143 183 156 187 193 187 218 312 199 48 41 40 45 37 45 42 42 39 43 46 52 50 769 678 862 693 662 870 785 744 951 807 822 784 764 67 9 173 30 17 120 66 10 272 15 18 151 68 136 137 136 140 122 136 133 136 140 ••145 '152 '147 154 250 228 190 221 209 243 258 279 223 ••259 '254 '261 305 9 7 4 5 10 6 8 7 8 1 11 5 9 44 49 49 39 50 68 55 50 56 167 66 50 53 262 249 309 258 254 297 266 262 252 220 321 170 175 Details of trust accounts, etc. Old-age reserve and railroad retirement accounts Period InIn- Benefit ReRevestvest- payceipts ments ceipts ments ments Fiscal year ending: June 1937 _ June 1938 June 1939 Withdrawals by States 1938—October November. _ December... 1939—January February... March April May June July August September. _ October -113 -44 +46 -1 In- gold All other expenditures 293 560 395 1 191 442 9 329 99 9 658 9 112 9 184 136 127 9 11 9 246 +60 +87 +116 2,553 2,216 2,838 1,087 141 142 142 194 143 182 190 240 279 183 64 103 1 168 146 9 207 83 9 54 91 9 56 36 9 43 170 +20 +36 +43 2,676 2,569 1,913 1,271 141 142 143 34 34 34 34 50 50 50 40 83 45 51 43 43 125 37 51 148 34 34 137 32 58 154 13 54 40 26 19 33 36 44 41 32 41 42 41 40 24 19 21 18 9 15 9 326 96 9 60 3 9 86 16 29 22 15 23 18 16 10 9 6 9 11 94 9 20 9 112 9 37 9 27 12 +19 +13 +8 +2 -1 +14 +11 +23 + 11 +13 +5 +10 + 15 2,569 2,447 3,084 2,933 3,343 3,389 3,044 2,924 2,838 2,447 2,231 2,178 1,913 267 461 516 223 196 234 44 49 49 39 50 68 55 50 85 65 66 50 53 () 85 120 32 10 111 9 13 108 9 13 9 14 129 9 19 7 -409 -122 +636 -151 +410 +46 -346 -119 -86 -391 -216 -53 -264 Increment Seign(+) or Total active iorage on gold 294 763 838 267 550 639 1 +30 +428 +52 +93 +9 +95 All other, excess of receipts ComReconstruction m o d i t y Finance Credit Corpora- Corporation tion 4 months ending: Oct. 1937 Oct. 1938 Oct. 1939 -3 -6 -31 +30 +180 +824 +204 +227 +127 +78 +219 +158 +222 +230 -34 +178 Details of general fund balance (end of period) N e t expenditures in checking accounts of G o v e r n m e n t agencies Unemployment t r u s t fund -437 -296 -157 -385 -245 -132 -517 -348 -339 -499 -402 -65 -442 -112 (8) 2 5 94 92 144 96 9 74 4 142 142 142 142 142 142 142 142 142 142 142 142 143 356 446 536 467 558 467 478 492 503 508 515 522 528 536 544 549 554 558 Work- 970 1,628 2,160 875 1,960 1,213 1,960 1,828 2,449 2,288 2,693 2,732 2,380 2,254 2,160 1,761 1,539 1,481 1,213 T Excludes debt retirements. Revised. 2 Includes taxes u n d e r Social Security Act and on carriers and their employees. 3 Includes miscellaneous internal revenue, unjust enrichment tax, and processing taxes. 4 Excludes expenditures for adjusted service which are included u n d e r "Transfers to t r u s t accounts, e t c . " 5 Includes revolving funds of P u b l i c W o r k s Administration and F a r m Credit Administration. 6 Includes expenditures for retirement funds, adjusted service certificate fund, old-age reserve account and railroad retirement account; except for t h e adjusted service certificate fund, these appear as receipts u n d e r " T r u s t accounts, e t c . " 8 9 '' Details given in lower section of table. Less t h a n $5C0,000. Excess of credits. i° Includes other trust accounts, increment resulting from reduction in weight of t h e gold dollar, expenditures chargeable against increment on gold (other t h a n retirement of national b a n k notes) and receipts from seigniorage. 1118 FEDERAL RESERVE BULLETIN DECEMBER 1939 GOVERNMENTAL CORPORATIONS AND CREDIT AGENCIES, SEPTEMBER 3 0 , 1939 [Based on compilation by U. S. Treasury Department from reports received from organizations concerned. In millions of dollars] Home mortgage and Reconhousing agencies struction Finance Corporation Home Other United and mort- States Public Owners' Loan gage HousWorks Corpoing Admin- ration agencies thAuistration ority Total Farm credit agencies TennesInsee surOther Valance Farm ComFarm ley agen- Other Sept. Aug. mort- Credit modity 30, 31, gage Credit Other Au- cies Adm. thor1939 1939 agenCorpobanks ity cies and cor- ration porations Sept. 30, 1938 ASSETS Loans and preferred stock: Loans to financial institutions . Preferred stock, etc Loans to railroads Home and housing mortgage loans Farm mortgage loans Other agricultural loans All other loans Total loans and preferred stock Cash U. S. Govt. direct obligations Obligations of Government credit agencies: Fully 6guaranteed by U. S. Other Accounts and other receivables Business property Property held for sale Other assets Total assets other than interagency 6 . 210 515 462 211 164 40 0) 76 0) 30 2,055 188 281 (0 2,266 65 392 39 37 104 21 2 2,626 66 78 356 53 171 13 8 24 t(i) 36 2 9 4 536 6 1,790 2,885 820 2,731 0) 6 0) 0) 0) 488 2,347 2,626 1,118 1,068 104 2,626 21 2 462 1,670 2 48 430 842 492 56 1 130 0) 210 6 119 8 0) 0) 0) 21 33 7 617 0) 199 3 324 617 1 524 24 77 1 0) 4 282 14 2,337 2,335 2,637 2,776 723 1,128 837 1,033 141 41 446 535 695 111 141 45 450 531 704 95 159 40 372 447 667 125 5 1 61 1 3 8 553 313 671 557 11, 967 12,017 11,319 3 1 204 9 56 5,356 5,489 5,010 1,357 1,345 1,365 737 1,054 1,052 0) 642 1,279 s 1,000 8 105 205 11 188 183 8 8 697 43 101 1 81 470 859 495 8,923 8,900 8,496 329 336 418 684 735 738 312 14 4 107 6 292 3,114 257 56 37 399 428 844 492 LIABILITIES Bonds, notes, and debentures: Guaranteed by United States... Other 6 Other liabilities (including reserves). Total liabilities other than interagency 6 Excess of assets over liabilities, excluding interagency transactions. Privately owned interests U. S. Government interests (0 114 409 148 107 134 36 967 2,839 169 122 2,385 216 597 183 16 208 65 7,768 7,886 7,112 . 823 46 319 50 135 729 200 426 4 100 370 297 463 139 492 4,19*9 4,131 4,207 377 393 391 823 46 269 135 528 422 100 370 297 324 492 3,806 3,739 3,830 i Less t h a n $500,000. * Includes $63,000,000 loans of Public Works Administration. 3 Includes $257,000,000 loans of Farm Security Administration. * Includes $158,000,000 loans of Rural Electrification Administration. *6 Excludes Federal land bank bonds held by Federal Farm Mortgage Corporation. Includes, however, investments in securities of agencies (other than mentioned in footnote 5) and deposits of agencies with Reconstruction Finance Corporation. NOTE.—For explanation of table, see BULLETIN for October 1938, p. 882. RECONSTRUCTION FINANCE CORPORATION LOANS AND INVESTMENTS [Amounts outstanding. In thousands of dollars] Oct. 31, 1938 Loans to financial institutions Loans on preferred stock of banks and insurance companies.. Preferred stock, capital notes, and debentures Loans to railroads (including receivers) Loans for self-liquidating projects Loans to industrial and commercial businesses Loans to drainage, levee, and irrigation districts Other loans Securities purchased from Public Works Administration 216,157 37,090 521,981 426,046 194, 606 98, 224 79, 667 19, 205 138, 783 Apr. 3C 1939 193,967 33, 583 528,024 443,840 111,391 112, 531 27,129 130,313 May 31, 1939 190,447 33, 494 528, 573 436,612 113,450 114,498 83,084 28, 640 128,865 J u n e 30, 1939 183, 943 33, 444 529, 270 439,199 44, 683 117,079 83,109 27,393 116, 577 July 31, 1939 181, 502 33, 349 526,876 438,863 68,106 121,804 83,358 25,196 119, 705 Aug. 31, 1939 178, 833 33,181 517,125 438,837 73,844 123,042 83,462 23,812 122,986 Sept. 30, 1939 177,011 33,162 515,157 438,835 85, 264 125,753 83, 502 23, 847 124, 476 Oct. 31, 1939 175, 795 33,127 513, 200 436, 650 89, 872 126, 863 83, 482 23, 274 126, 649 Total loans and investments, other than interagency.. 1, 731, 760 1, 663, 744 1, 657, 663 1,574,697 1, 598, 759 1, 595,121 1,607,006 1, 608, 911 Preferred stock of Export-Import bank Loans to Rural Electrification Administration Capital stock of, and loans to R. F. C. Mortgage Co Capital stock of, and loans to Fed. Natl. Mtge. Assn Loans to Tennessee Valley Authority T o t a l loans a n d investments 20,000 44,996 31, 975 2,000 45,000 56,698 55,066 29,398 3,000 45,000 61,148 55, 625 33, 796 3,000 45,000 146,498 55, 219 41, 776 8,300 45,000 146, 498 54,903 44,438 8,300 45,000 146, 498 54,629 46,500 8,300 45, 000 146, 498 55,102 50, 323 1,877,228 1,852,906 1,856,232 1,869,585 1,895,551 1,894, 260 1,907, 932 1, 914,133 N O T E . — F o r explanation of table and back figures, see BULLETIN for April 1936, p . 220. 45,000 146,498 57,094 37,996 8,300 1119 FEDERAL RESERVE BULLETIN DECEMBER 1939 FARM CREDIT ADMINISTRATION LOANS AND DISCOUNTS OUTSTANDING, BY INSTITUTIONS [In thousands of dollars] Federal intermediate credit bank loans to and discounts for— Farm mortgage loans by- Regional agricultural Other credit cor- financing Land porations, instituBank Federal tions, land banks Commis- production credit asexcept sioner sociations, cooperaand banks tives for cooperatives i End of month Loans to cooperatives b y - EmerProduc- Regional agriculgency tion credit tural credcrop and associait corpodrought tions rations loans 1934—December. 1935—December. 1936—December. 1937—December. 1,915, 792 2, 071, 925 2,064,158 2,035, 307 616, 825 794, 726 836, 779 812, 749 99, 675 104, 706 129,872 165,194 55, 672 47,162 41,017 40, 464 60,852 94,096 105, 212 138,169 87,102 43,400 25, 288 15, 592 111, 182 172,489 164,887 172,130 1938—October. __ November. December. 1939—January. _. February.. March April May June July August September October 1, 997, 561 1, 990, 475 1, 982, 224 1,973,179 1,968, 790 1, 960, 357 1, 954, 677 1, 947,944 1,940, 586 1, 934,013 1, 928,166 1, 922, 577 1, 916,431 766, 502 760, 326 752, 851 745, 631 740, 870 733, 647 174, 626 166, 549 168, 392 163,815 166, 996 175, 362 182, 643 186, 588 190, 359 189,044 187, 968 179, 674 169, 731 36,121 34, 537 33, 545 33,077 34,115 35, 318 36, 483 38,124 39, 794 40, 657 41, 661 37, 645 33, 996 154, 560 148, 430 148,037 148,416 155,409 167,867 177, 792 183, 351 187, 712 187, 844 185, 215 174,032 162, 703 12,354 11, 592 11,081 10,863 10, 689 10, 399 10, 298 10, 286 10, 235 10,003 9,599 9,127 8,351 174, 574 172,043 170,891 169, 707 170,400 175, 509 179,156 179,834 179, 565 178, 754 177, 668 175,060 723,187 717, 622 712, 823 708,426 703,840 699, 274 171,211 Federal intermediate credit banks Banks for Agriculcoopertural atives, Marketincluding ing Act Central revolvBank ing fund 2,731 1,641 1,813 744 851 920 834 1,152 1,528 1,256 596 359 263 127 778 1,493 27,851 50,013 69, 647 87, 633 54,863 44, 433 53, 754 30,982 86, 931 86, 221 87, 496 27,917 25,313 23, 723 23,948 23, 631 23, 305 23,190 23,061 22, 592 22,189 22,422 21, 663 21, 582 73, 692 65, 783 61, 363 60,465 59, 577 62,124 61,404 65,160 70,422 i Some of the loans made by the regional agricultural credit corporations (prior to October 1935) and by the banks for cooperatives and most of the loans made by the production credit associations are discounted with the Federal intermediate credit banks. The amounts in this column are thus included in the three columns under those headings. Such loans are not always discounted in the same month in which the original credit is extended. FEDERAL HOME LOAN BANK BOARD POSTAL SAVINGS SYSTEM LOANS OUTSTANDING, BY INSTITUTIONS [In millions of dollars] [Loans in thousands of dollars] Assets Home mortgage loans b y - End of month Federal savings and loan associations Home Owners' Loan Cor- Number poration of associations Loansi 1934—December _ 1935—December. 1936— December. 1937—December . 2,379,491 2,897,162 2, 765,098 2, 397, 647 1,023 1,212 1,328 81, 300 348, 000 586, 700 853, 500 1938—October. __ November. December. 1939—January... February.. March April May June July August September. October __. 2, 203,896 2,186,170 2,168,920 2,149, 038 2,134, 261 2,117, 598 2,105, 824 2,091, 324 2,080, 512 2,067, 844 2, 059, 792 2,054, 865 2,049, 421 1,370 1,374 1,368 1,370 1,375 1,375 1,381 1,383 1,386 1,385 1,392 1,394 1,394 1, 011,087 1, 020,873 1,034,162 1,040, 770 1, 051,109 1, 067, 887 1,089,879 1,117, 228 1,136, 289 1,157, 536 1,186, 784 1, 206,887 1, 231, 685 Federal home loan bank loans to member institutions 2 86, 651 102, 791 145, 394 200,092 End of month 1935—June.. 1936—June. . 1937—June_. 1938—June.. U. S. Government Depossecurities itors Cash Cash balin dereGuar- serve ancesi Total posiDian- funds, tory rect teed banks Total obli- obli- etc.2 gations 1,205 1,232 1,268 1,252 189, 217 1938—September 1,248 October 189, 685 1,250 November 198, 840 1,250 178, 852 December 1,252 170, 614 1939—January 1,259 161, 614 February _____ 1,263 157,176 1,266 March 157, 911 1,264 April 168, 962 1,261 May 161, 537 1,262 June 159, 470 1,268 July 163, 687 1,271 August 168, 654 l 267 September October , 270 1,236 1,265 1,307 1,290 385 777 203 967 136 1,100 115 1,103 630 800 933 936 147 167 167 167 74 95 71 72 1,287 1,289 1,291 1,291 1,299 1,304 1,309 1,306 1,305 1,304 1,310 1,314 1,118 1,118 1,128 1,132 1,137 1,144 1,153 1,154 1,157 1,157 1,172 1,174 952 952 961 965 971 978 166 166 167 167 166 166 167 166 146 146 146 146 71 75 76 73 79 79 76 76 75 79 80 84 1,011 1,011 1,026 1,028 1 Federal Home Loan Bank Board estimates for all Federal savings p1 Preliminary. and loan associations. Outstanding principal, represented by certificates of deposit. Does 2 Excludes loans to other than member institutions which are neglinot2 include accrued interest nor outstanding savings stamps. gible in amount. Includes working cash with postmasters, 5-per cent reserve fund and miscellaneous working funds with the Treasurer of the United States, accrued interest on bond investments, and accounts due from late postmasters. Back figures—See BULLETIN for August 1935, p. 502. 1120 FEDERAL RESERVE BULLETIN DECEMBER 1939 PRODUCTION, EMPLOYMENT, AND TRADE [Index numbers; 1923-25 ayerage=100. The terms "adjusted" and "unadjusted" refer to adjustment for seasonal variation] Construction contracts awarded (value) 2 Industrial production i * Year and month Total Manufac- Minerals Total Residential All other Factory employment3 U Factory Freight-car pay- loadings4 * rolls 3 Department store sales * (value) Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Unad- Ad- Unad- Ad- Unadjusted justed justed justed justed justed justed justed justed justed justed justed justed justed justed justed justed justed justed 84 87 67 86 101 94 105 108 106 112 119 95 80 63 75 78 90 105 109 84 83 87 67 85 101 95 104 108 106 111 119 96 81 64 76 79 90 105 110 86 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 77 89 70 74 105 96 99 108 107 106 115 99 84 71 82 86 91 105 116 98 63 63 56 79 84 94 122 129 129 135 117 92 63 28 25 32 37 55 59 64 44 30 44 68 81 95 124 121 117 126 87 50 37 13 11 12 21 37 41 45 79 90 65 88 86 94 120 135 139 142 142 125 84 40 37 48 50 70 74 80 107 107 82 91 104 96 100 102 100 100 306 92 78 66 73 86 91 99 109 90 98 117 76 81 103 96 101 104 102 104 110 89 68 47 50 65 74 86 103 78 84 91 78 85 100 98 103 107 104 104 107 92 74 55 58 62 64 75 78 62 78 94 87 88 98 99 103 106 107 108 111 102 92 69 67 75 79 88 92 85 1936 109 110 114 121 108 111 115 114 110 110 114 121 107 110 115 114 102 105 112 117 110 115 115 111 59 57 58 66 60 54 51 53 47 43 40 45 47 41 39 38 69 69 72 83 70 65 62 65 102 102 104 107 104 105 105 106 87 93 94 99 75 77 82 83 84 86 84 77 88 90 94 92 94 100 105 161 114 116 118 118 118 114 114 117 111 102 88 84 112 117 122 122 122 115 111 115 109 102 90 80 115 116 117 118 118 114 114 117 110 100 85 79 113 118 122 125 123 114 110 114 106 99 86 75 111 116 128 115 117 115 112 113 116 113 109 115 107 112 119 105 118 118 116 121 125 123 113 109 63 62 56 53 56 61 67 62 56 52 56 61 51 54 56 61 68 72 75 66 56 49 50 49 45 47 45 44 44 42 44 40 37 36 32 30 37 42 47 51 52 47 45 40 37 35 31 25 77 75 64 61 66 77 86 81 71 65 76 87 63 64 63 68 81 92 99 87 72 61 65 68 107 108 110 111 112 111 112 112 110 108 104 98 105 108 110 111 112 110 111 112 112 110 104 97 95 100 106 110 110 108 105 109 105 105 93 85 80 82 83 84 80 78 80 79 78 76 71 67 73 76 80 79 80 79 82 81 87 84 72 62 93 95 93 93 93 93 92 93 94 93 91 89 72 76 90 89 95 90 65 72 100 103 101 156 80 79 79 77 76 77 83 88 90 96 103 104 79 79 80 78 77 77 81 87 91 97 104 98 76 75 75 73 73 74 82 87 89 95 103 104 75 76 77 76 75 75 79 85 89 95 103 98 108 103 104 100 92 92 93 95 97 98 102 109 103 99 96 91 90 92 93 97 102 106 105 103 52 51 46 52 51 54 59 66 78 82 96 96 42 44 46 59 61 63 65 69 79 78 85 77 26 32 33 37 37 42 49 53 56 57 56 57 22 28 35 43 44 46 49 52 56 56 54 48 73 66 56 65 62 64 68 77 96 102 128 128 59 56 55 73 76 76 78 84 97 96 111 100 93 92 90 88 86 85 86 88 89 90 93 94 91 91 91 89 86 84 85 89 92 92 93 94 75 78 78 75 73 71 71 77 82 84 84 87 65 62 60 57 58 58 61 62 64 68 69 69 59 57 57 55 57 58 62 63 71 75 70 64 90 88 86 83 78 82 83 83 86 84 89 89 70 70 77 86 80 79 58 65 91 92 99 156 101 99 98 92 May___ 92 98 June July.... 101 Aug 103 S e p t — 111 Oct P120 100 99 100 95 94 98 97 99 112 P123 100 97 96 92 91 97 100 104 111 P120 r99 110 98 110 100 110 96 95 94 98 97 104 95 106 99 91 110 114 P121 P122 105 105 102 88 97 105 107 96 123 P133 86 73 69 67 63 63 67 73 73 P77 70 63 69 76 75 73 73 76 73 P77 55 58 55 58 55 58 62 67 68 P67 45 51 58 68 65 64 63 66 68 P65 111 85 80 74 68 67 71 78 76 P84 90 95 72 94 79 94 83 94 84 93 80 94 81 95 84 96 77 97 P79 P101 92 94 94 94 93 93 94 96 100 P103 84 86 88 86 85 87 84 90 94 P101 69 67 66 60 62 67 69 70 77 80 63 62 63 58 62 67 70 71 85 89 88 87 88 88 85 86 86 89 91 80 69 69 82 88 87 83 60 69 97 99 Sept Oct Nov Dec 1937 Jan. Feb Mar April May June... July.— Aug Sept. ._ Oct Nov Dec 1938 Jan Feb Mar April... May June July.— Aug Sept.— Oct Nov Dec 1939 Jan Feb Mar April. __ r p1 Preliminary. Revised. * Average per working day. For indexes of groups and separate industries see pp. 1121-1122; for description see BULLETIN for February and March, 1927. 2 3-month moving average of F. W. Dodge Corporation data, centered at second month; for description see p. 358 of BULLETIN for July 1931. 3 The indexes for factory employment and payrolls unadjusted for seasonal variation are compiled by the Bureau of Labor Statistics. For description of the seasonally adjusted index of factory employment compiled by F. R. Board of Governors see BULLETIN for October 1938, pp. 835837, and for October 1939, p. 878. For current indexes of groups and separate industries see pp. 1123-1126. Underlying figures are for payroll period ending nearest middle of month. 4 For indexes of groups see p. 1128. Back figures.—See Annual Report for 1937 (table 81). For department store sales see BULLETIN for October 1938, p. 918; for factory employment and payrolls see BULLETIN for October 1938, pp. 838-866, and for October 1939, pp. 879-887. 1121 FEDERAL RESERVE BULLETIN DECEMBER 1939 INDUSTRIAL PRODUCTION, BY INDUSTRIES (ADJUSTED INDEXES) [Index numbers of the Board of Governors; adjusted for seasonal variation. 1923-25 average=100] 1938 Industry Sept. Oct. 1939 Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. 89 69 107 95 83 106 103 94 110 104 92 114 100 88 97 ••84 109 06 80 110 92 76 105 01 71 108 97 82 110 100 88 110 104 92 115 Ill 103 117 P120 75 59 77 90 67 92 108 76 112 101 74 104 93 72 95 88 73 89 83 75 84 79 66 80 73 55 75 89 73 90 100 81 102 105 91 107 121 101 123 157 119 160 46 4 84 5 96 8 99 12 105 12 100 12 01 14 87 14 73 15 81 15 87 15 89 19 85 78 71 75 50 81 80 50 73 88 66 59 94 57 66 89 70 72 87 73 76 00 69 92 91 71 102 80 82 93 90 70 87 91 68 99 93 71 97 98 71 95 110 70 69 107 80 155 84 155 82 153 69 147 80 133 90 131 81 83 75 80 79 124 82 87 76 121 78 165 87 222 89 5 08 5 105 6 106 6 106 6 105 5 106 5 94 2 77 2 103 5 110 5 120 5 130 7 23 103 107 93 107 86 66 111 100 104 91 101 87 67 104 112 112 107 123 101 69 123 117 120 116 134 112 72 116 109 111 107 114 113 77 107 109 111 111 117 113 87 97 110 114 105 110 91 84 108 97 105 85 01 80 78 88 104 110 105 120 98 73 76 111 115 116 138 105 70 84 111 117 114 136 105 64 84 120 128 123 150 103 79 87 121 129 118 138 103 84 107 _ 103 78 86 72 65 119 101 81 80 69 70 114 107 00 94 89 77 118 123 98 99 109 85 138 124 103 100 119 97 137 124 105 104 118 97 137 121 05 93 103 95 138 115 07 01 101 106 127 113 04 01 80 104 126 108 91 87 91 102 119 114 88 89 69 106 131 117 98 106 '73 103 130 103 86 92 71 87 114 P116 Slaughtering and meat packing Hogs Cattle • Calves Sheep... _ Wheat flour Sugar meltings _ 98 88 106 118 152 88 106 05 02 04 108 140 01 103 04 88 06 112 152 86 100 86 79 89 106 137 92 108 87 74 97 111 150 92 106 83 67 100 108 157 94 70 89 73 106 110 156 97 78 00 81 00 105 135 100 04 04 84 104 108 142 05 72 87 73 103 104 143 100 66 89 77 102 107 145 96 81 92 84 100 104 139 88 77 100 95 102 111 146 103 96 99 69 95 110 144 91 91 160 75 229 84 160 74 211 78 164 76 233 05 179 76 258 07 165 79 237 78 162 77 231 78 164 78 236 80 164 77 236 81 170 75 246 85 170 75 247 84 158 73 227 80 168 76 241 89 164 76 235 85 166 75 240 83 57 130 58 132 63 128 61 128 61 125 61 127 62 126 63 130 65 127 63 132 63 126 63 130 65 142 63 137 206 265 109 141 113 208 269 102 143 110 208 269 104 140 109 201 259 107 142 100 205 262 112 145 106 201 256 113 138 117 202 256 122 140 111 200 265 122 143 115 211 260 124 143 110 215 276 122 144 121 212 273 117 139 115 218 280 123 140 128 221 284 118 148 123 95 98 71 99 103 72 100 104 75 112 116 79 110 115 76 109 114 71 114 119 76 104 108 73 102 106 68 112 117 77 111 116 77 122 127 84 123 128 '86 126 131 90 97 98 102 109 110 110 110 05 08 104 106 91 114 P122 78 67 169 75 69 171 79 61 169 77 61 173 31 80 174 71 94 57 85 89 70 87 73 100 90 69 86 01 71 101 75 53 174 74 91 68 70 77 53 127 78 93 71 86 46 73 175 55 89 82 71 84 71 174 97 98 71 104 Manufactures—Total 1 Durable Nondurable IRON AND STEEL Pig iron Steel ingots . . no P117 TRANSPORTATION EQUIPMENT: Automobiles Locomotives _ . _ . NONFERROUS METALS: Tin deliveries * Zinc Lead CEMENT AND GLASS: Cement Glass, plate _ _._ COKE: Byproduct Beehive TEXTILES Cotton consumption. _ Wool Consumption _ ___ Machinery activity * Carpet and rug loom activity L Silk deliveries LEATHER AND PRODUCTS Tanning Cattle hide leathers Calf and kip leathers Goat and kid leathers Boots and shoes 129 P119 P131 120 FOOD PRODUCTS: TOBACCO PRODUCTS __ Cigars Cigarettes Manufactured tobacco _ ._ PAPER AND PRINTING: Newsprint production Newsprint consumption . . PETROLEUM REFINING Gasoline 1 Kerosene Fuel oil i Lubricating oil 1 _ _ R U B B E R T I R E S AND T U B E S 1 1 Tires, pneumatic Inner tubes 1 Minerals—Total Bituminous coal Anthracite Petroleum, crude.. Iron ore Zinc Lead __ Silver . . . ._ 71 50 158 41 75 50 102 72 49 161 50 80 50 102 76 58 165 42 88 66 51 r 90 70 107 79 pro ^185 128 110 70 i Without seasonal adjustment. v Preliminary. Revised. NOTE.—Descriptive material and tables giving back figures may be obtained upon request from the Division of Research and Statistics. Series on shipbuilding, silk-loom activity, and on production of book paper, wrapping paper, fine paper, boxboard, mechanical wood pulp, chemical wood pulp, paper boxes, and lumber, included in the total index, are withheld from publication pending revision. 1122 FEDERAL RESERVE BULLETIN DECEMBER 1939 INDUSTRIAL PRODUCTION, BY INDUSTRIES (UNADJUSTED INDEXES) [Index numbers of the Board of Governors; without seasonal adjustment. 1923-25 average=100] 1938 1939 Industry Sept. Manufactures—Total _ Durable Nondurable IRON AND STEEL.. Pig iron Steel ingots... 89 66 109 Oct. 95 79 109 75 57 76 Nov. Dec. 103 92 113 85 108 100 77 103 TRANSPORTATION EQUIPMENT: Automobiles __. _ Locomotives 115 8 117 12 Jan. Apr. May Feb. Mar. '99 84 111 ••84 111 100 86 111 96 84 106 94 78 107 90 71 92 92 75 93 93 79 95 87 70 89 79 56 81 105 11 ••100 12 105 14 106 13 15 June 97 85 108 July 95 83 105 Aug. Oct. 99 85 111 110 99 119 P121 P122 P121 103 87 105 120 98 122 152 119 156 59 93 15 NONFERROUS METALS: Tin deliveries Zinc Lead - 95 106 72 102 90 73 -- CEMENT AND GLASS: Cement Glass, plate 86 107 91 155 155 64 153 42 147 48 133 65 138 107 7 111 111 117 135 112 72 103 107 7 114 117 109 118 113 77 122 108 7 109 6 115 119 116 128 113 87 104 104 95 96 94 92 109 115 98 101 98 92 125 COKE: « ByproductBeehive TEXTILES Cotton consumption Wool Consumption Machinery activity Carpet and rug loom activity Silk deliveries LEATHER AND PRODUCTS Tanning Cattle hide leathers Calf and kip leathers._. Goat and kid leathers.. Boots and shoes 107 93 112 100 78 121 165 222 95 2 76 2 101 5 107 4 116 4 112 119 106 122 91 84 104 100 113 84 88 80 78 87 104 114 100 111 98 73 75 105 111 109 124 105 70 75 103 106 106 121 105 64 80 112 115 118 139 103 79 91 128 7 121 125 122 145 103 84 113 P127 133 P126 126 108 111 108 101 138 125 94 94 91 97 145 112 94 91 91 105 124 105 88 87 85 96 115 104 90 112 102 113 81 98 128 rl30 100 104 ••88 101 '149 119 91 95 82 91 137 P130 84 69 101 104 145 94 80 64 98 96 140 94 91 71 114 107 170 122 102 97 84 111 116 158 102 87 180 181 87 259 179 92 252 63 146 103 104 96 113 86 66 116 103 107 96 111 87 67 104 116 117 113 134 101 69 127 119 84 90 83 68 143 111 86 92 82 73 128 102 85 76 112 90 66 118 113 176 104 114 94 79 110 113 163 102 98 104 97 111 114 151 93 78 101 103 94 100 135 101 100 98 104 151 90 70 74 88 100 147 91 84 74 92 111 142 91 92 81 72 87 114 127 91 109 92 81 101 122 139 90 81 76 96 108 140 88 78 177 86 252 91 161 90 222 81 167 90 231 92 145 57 212 79 167 61 232 79 147 67 211 79 156 71 224 81 151 72 215 78 172 78 248 85 186 81 272 86 171 76 249 80 261 91 57 128 58 140 137 61 132 62 120 61 125 61 131 64 139 131 64 131 62 112 61 116 64 139 206 265 111 141 113 209 269 107 143 110 208 269 113 140 109 202 259 115 142 100 205 262 115 145 106 202 256 115 138 117 201 256 119 140 111 208 265 121 143 115 211 269 119 143 119 215 276 113 144 121 211 273 108 139 115 217 280 116 140 128 221 284 121 148 123 100 104 75 112 116 79 110 115 76 109 114 71 114 119 76 104 108 73 102 106 68 112 117 77 111 116 77 122 127 84 123 128 '86 105 103 105 105 102 97 105 107 86 60 163 35 88 69 55 82 66 164 83 74 164 166 77 50 171 FOOD PRODUCTS: Slaughtering and meat packing... Hogs Cattle Calves Wheat flour Sugar meltings.. TOBACCO PRODUCTS Cigars Cigarettes Manufactured tobacco.. PAPER AND PRINTING: Newsprint production... Newsprint consumption. PETROLEUM REFINING.. Gasoline Kerosene Fuel oil Lubricating oil RUBBER TIRES AND TUBES Tires, pneumatic Inner tubes Minerals—Total . Bituminous coal._ Anthracite Petroleum, crude. Iron ore Zinc Lead Silver 95 98 71 102 103 72 106 76 51 163 78 71 48 97 79 63 163 86 78 52 101 58 93 75 108 26 83 174 94 70 102 40 73 177 82 90 51 173 132 87 71 105 44 178 150 84 65 59 75 53 129 159 87 68 78 22 P145 P115 P90 120 P115 126 131 90 123 P133 90 72 179 187 93 67 P102 P75 P187 218 106 72 p Preliminary. «• Revised. NOTE.—Descriptive material and tables giving backfiguresmay be obtained upon request from the Division of Research and Statistics. Series on shipbuilding, silk-loom activity, and on production of book paper, wrapping paper,finepaper, boxboard, mechanical wood pulp, chemical wood pulp, paper boxes, and lumber, included in the total index, are withheld from publication pending revision. DECEMBER 1123 FEDERAL RESERVE BULLETIN 1939 FACTORY EMPLOYMENT, BY INDUSTRIES (ADJUSTED FOR SEASONAL VARIATION) [Index numbers of the Board of Governors; adjusted to Census of Manufactures through 1937. 1923-25 average=100] 1939 1938 Industry and group Sept. Total Durable goods Nondurable goods IRON, STEEL, PRODUCTS Blast furnaces, steel works Bolts, nuts, washers, rivets. Cast-iron pipe _ Cutlery, edge tools Forgings Hardware Plumbers' supplies Stamped, enameled ware... Steam, hot-water heating Stoves Structural, ornamental _ Tin cans, tinware Tools Wirework _ _ _ MACHINERY __ Agricultural implements Cash registers, etc Electrical machinery Engines, turbines, etc. Foundry, machine-shop productsMachine tools Radios, phonographs Textile machinery Typewriters TRANSPORTATION EQUIPMENT Aircraft Automobiles Cars, electric-, steam-railroad Locomotives __ Shipbuilding NONFERROUS METALS, PRODUCTS AJnminTim Brass, bronze, copper Clocks, watches Jewelry _ __ _ Lighting equipment. _ _ Silverware, plated ware Smelting, refining _ LUMBER, PRODUCTS Furniture Lumber, millwork _ Lumber, sawmills _ STONE, CLAY, GLASS PRODUCTS _ Brick, tile, terra cotta . Cement Glass.. . _ _ Marble, granite, slate Pottery___ TEXTILES, PRODUCTS Fabrics Carpets, rugs _ Cotton goods . Cotton small wares. Dyeing, finishing textiles Hats, fur-felt Hosiery. __ Knitted outerwear Knitted underwear Knitted cloth Silk, rayon goods Woolen, worsted goods Wearing apparel _ Clothing, men's. Clothing, women's Corsets, allied garments Men's furnishings Millinery Shirts, collars r Revised. . Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. 89 4 75.6 102.7 90.2 78.3 101.5 92.8 82.1 103.1 94.4 83.7 104.7 94.6 84.4 104.4 94.3 84.2 103.9 94.0 83.7 103.8 93.8 83.9 103.3 93.3 82.9 103.3 94.3 83.9 104.2 95.3 84.7 105.4 96 0 '85.3 105.9 97 3 88.5 105.7 101 0 94.1 107.5 83.6 88 87 85.8 89 90 89.1 93 95 90.9 95 97 90.7 95 96 90.4 94 96 90.7 94 97 90.5 95 94 89.6 94 93 90.3 96 93 90.6 96 94 95.7 101 101 105.0 115 113 69 84 49 71 70 85 52 83 73 88 64 89 72 90 56 91 72 90 54 89 73 89 55 87 73 90 55 84 73 86 55 80 71 91 54 72 73 139 74 146 74 147 74 143 74 147 74 144 75 142 76 147 72 91 56 70 75 135 74 144 73 90 54 87 92.5 97 98 77 147 80 158 75 81 59 88 76 137 74 79 60 91 80 154 74 82 62 93 83 162 74 82 63 94 83 154 74 84 66 95 84 152 75 85 67 95 84 151 75 84 67 96 84 148 74 85 67 95 84 142 78 157 74 79 58 93 76 125 75 86 66 95 84 135 78 89 67 95 81 128 79 88 69 98 85 121 80 86 71 97 87 149 84 89 75 104 90 164 85.1 100 134 86.8 104 134 89.2 104 133 91.7 110 134 92.3 114 132 94.0 123 131 94.8 124 131 94.9 122 127 94.4 119 126 95.4 118 128 96.1 115 127 97.3 121 125 99.7 123 127 105 6 125 126 73 94 56 78 74 97 59 84 76 102 66 88 81 160 81 83 85 84 85 82 75 120 89 63 123 85 75 122 98 64 126 87 77 124 117 66 127 88 79 126 123 69 127 92 80 128 126 69 127 91 81 132 129 71 128 91 82 134 130 72 129 69.8 798 80.3 824 90.6 837 93.2 868 94.1 900 92.9 966 102 102 98 87.2 91.2 91.1 90.0 ••88.3 88.9 98.2 104.2 968 1,075 1,169 1,267 1,385 1 414 1,512 1 606 33 17 103 35 19 106 38 17 113 36 16 111 78 72 86 99 31 16 93 28 15 94 29 16 100 86.2 128 86 97 87 86 87 91 82 138 124 73 129 93 81 140 121 75 126 95 83 144 122 75 126 96 89 89 87 95 83 149 131 77 122 90 34 18 112 34 21 118 33 25 127 32 28 128 88 97 85 146 126 78 119 92 99 86 155 129 78 122 97 108 91 170 145 81 123 f88 100 31 29 125 34 28 128 41 25 132 r96.3 157 99.2 152 107.1 165 115 85 91 88 71 130 87 93 96 70 105 88.4 131 91.9 132 93.1 131 93.3 131 93.4 135 93.4 140 93.2 143 92.8 142 92.8 145 94.6 153 98 79 84 71 61 101 81 84 77 64 106 79 86 82 65 106 79 91 85 67 105 84 90 86 68 104 84 91 84 68 104 84 92 80 69 103 85 93 104 84 90 76 68 105 82 91 73 68 106 84 94 75 70 70 71 76 77 78 78 77 78 77 77 76 62.8 62.4 64.0 65.7 65.1 63.2 64.2 64.8 65.3 66.0 66.4 79 65 80 67 85 67 85 66 85 67 84 56 85 69 86 69 86 60 69 4 57 84 58 67 4 80 65 65.0 83 87 61 89 63 79 0 81 0 77 68 109 85 95 77 70 75 58 57 59 69 60 59 56 57 59 69 60 60 70.7 73.2 76.8 77.8 79.6 77.4 77.4 77.9 75.4 78.4 58 67 97 53 55 63 96 52 78.1 68 66 95 53 77.5 58 67 98 51 57 67 99 50 62 63 87 45 53 67 92 46 81 82 84 85 87 86 85 84 84 87 88 100.3 89.0 67 85 76 118 94 147 71 69 131 64 78 121.4 106 177 103 141 84 119 98.9 88.1 71 84 77 116 96 148 72 69 135 62 75 119.0 104 171 104 142 84 117 100.0 90.5 74 85 80 118 91 148 71 70 139 64 84 116.9 104 167 105 138 72 117 102.2 92.3 76 85 83 121 89 151 77 71 144 65 88 120.0 106 173 106 140 77 119 101.9 91.9 78 85 82 122 90 153 64 72 134 64 88 119.5 103 171 107 132 79 130 101.8 91.7 77 86 82 122 90 153 68 71 134 64 84 120.2 104 173 107 136 84 123 101.0 91.0 77 85 80 122 87 154 70 70 134 65 81 119.2 104 171 107 132 84 121 99.6 90.2 77 85 78 121 86 154 67 70 133 65 77 116.4 103 165 109 128 81 119 99.8 91.0 74 85 80 124 84 153 68 73 128 66 81 115.2 102 161 111 125 80 120 101.2 92.0 73 86 79 120 89 152 72 74 138 63 86 117.5 104 169 114 129 74 120 104.1 94.5 74 56 68 98 47 57 68 99 49 61 64 100 49 59 66 95 48 57 66 98 60 83 128 93 154 75 77 138 63 89 121.1 107 174 115 135 73 123 87 104.9 95.4 76 91 84 129 90 155 80 79 140 62 85 121.4 107 174 117 140 77 121 77 61 59 67 100 48 87 103.6 94.2 78 91 86 129 87 149 75 78 140 61 83 120.4 106 172 116 136 80 121 83 63 60 68 105 50 87 106.4 98.0 83 94 91 133 86 152 75 79 147 65 90 120.4 107 170 117 138 80 121 1124 FEDERAL RESERVE BULLETIN DECEMBER 1939 FACTORY EMPLOYMENT, BY INDUSTRIES (ADJUSTED FOR SEASONAL VARIATION)—Continued [Index numbers of the Board of Governors; adjusted to Census of Manufactures through 1937. 1923-25 average=100] 1938 1939 Industry and group Sept. LEATHER, MANUFACTURES Boots, shoes Leather Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June 97.2 97 81 96.5 96 83 97.6 96 85 98.1 97 86 98.9 98 87 99.0 98 87 99.2 98 86 97.7 97 85 92 84 126.7 144 263 96 153 83 76 75 98 116 99 123.4 143 263 96 129 82 76 77 99 108 127.4 144 276 95 149 83 78 78 100 108 95 128.8 144 274 96 151 86 79 78 100 152 94 128.8 144 276 96 150 84 79 79 98 212 125.7 144 275 94 143 83 77 78 96 120 93 127.3 144 270 94 158 82 78 78 96 107 127.0 144 270 95 157 81 77 78 96 103 102 128.4 146 272 96 159 81 80 77 98 107 87 129.4 147 275 95 162 80 81 77 100 104 65.7 65 64.4 59 65 65.0 63 65 65.6 63 66 65.9 61 67 64.8 61 65 61.4 62 62 64.5 63 65 65.1 62 65 65.5 62 66 109.0 105 104 109.2 105 105 98 113 110.6 108 106 99 114 111.1 110 106 100 114 111.0 111 106 100 113 111.1 111 106 99 114 111.4 112 106 100 114 111.5 111 106 100 114 111.5 111 107 99 115 111.1 111 106 99 114 CHEMICAL, PETROLEUM, AND COAL PRODUCTS Petroleum refining Other than petroleum Chemicals Cottonseed oil, cake, meal Druggists' preparations Explosives Fertilizers Paints, varnishes Eayon, allied products Soap 112.9 121 110.9 113 100 109 87 103 118 299 81 112.6 120 110.8 115 99 108 86 99 118 300 80 113.3 120 111.8 119 101 108 84 102 118 297 77 113.7 119 112.4 120 104 108 85 100 119 297 81 113.6 119 112.3 119 97 109 86 103 119 297 81 112.9 119 111.4 120 88 107 86 97 118 301 80 113.4 119 112.2 120 96 108 120 299 79 114.2 118 113.3 118 103 109 86 110 121 309 78 114.4 119 113.4 117 110 111 87 115 119 302 79 R U B B E R PRODUCTS Rubber boots, shoes Rubber tires, inner tubes Rubber goods, other 75.8 54 61 125 76.5 56 63 123 81.4 60 66 133 82.9 60 67 137 81.4 58 67 133 81.4 60 66 133 82.2 60 67 134 81.3 60 67 131 81.1 61 67 129 FOOD, PRODUCTS Baking Beverages Butter Canning, preserving Confectionery Flour Ice cream Slaughtering, meat packing Sugar, beet Sugar refining, cane -- TOBACCO MANUFACTURES Tobacco, snuff Cigars, cigarettes P A P E R , PRINTING Boxes, paper Paper, pulp Book, job printing Newspaper, periodical printing. 97.1 July Aug. Sept. Oct. 97.4 96 87 96.8 95 87 97.2 95 127.9 129.7 147 146 269 269 96 95 '160 150 82 86 79 81 75 75 101 101 99 105 94 96 128.1 146 269 95 147 82 82 76 102 131 90 126.4 146 270 95 133 81 80 77 103 108 100 65.7 61 65.2 62 64.4 62 65 63.5 62 64 111.8 113 106 101 114 112.0 115 107 99 115 112.8 116 109 98 116 114.9 121 114 99 116 113.1 '113. 7 r i l l . 9 120 121 122 111.4 r i l l . 9 nO9.4 117 115 119 88 81 85 112 90 93 92 107 103 105 120 125 122 295 254 298 84 87 116.2 122 114.9 122 87 113 98 111 123 297 87 119.8 122 119.2 132 93 113 102 108 125 79.7 47 67 134 86.1 58 70 144 91.2 60 74 154 80.8 59 131 98.7 98 87 83.6 58 68 138 r Revised. NOTE.—Figures for October 1939 are preliminary. For description and back data see the BULLETIN for October 1938, pages 835-886, and for October 1939, pages 878-887. Underlying figures are for payroll period ending nearest middle of month. DECEMBER 1125 FEDERAL RESERVE BULLETIN 1939 FACTORY EMPLOYMENT AND PAYROLLS, BY INDUSTRIES (WITHOUT SEASONAL ADJUSTMENT) [Index numbers'of the Bureau of Labor Statistics; adjusted to Census of Manufactures through 1937. 1923-25 average=100] Factory employment Industry and group 1938 1939 Sept. Oct, Total Durable goods Nondurable goods IRON, STEEL, PRODUCTS Blast furnaces, steel works Bolts, nuts, washers, rivets Cast-iron pipe Cutlery, edge tools Forgings Hardware Plumbers' supplies Stamped, enameled ware Steam, hot-water heating Stoves Structural, ornamental Tin cans, tinware Tools Wirework — MACHINERY Agricultural implements Cash registers, etc Electrical machinery Engines, turbines, etc Foundry, machine-shop products. Machine tools Radios, phonographs Textile machinery Typewriters TRANSPORTATION EQUIPMENT Aircraft Automobiles Cars, electric-, steam-railroad Locomotives Shipbuilding NONFERROUS METALS, PRODUCTS Aluminum Brass, bronze, copper Clocks, watches Jewelry Lighting equipment Silverware, plated ware Smelting, refining LUMBER, PRODUCTS Furniture Lumber, millwork Lumber, sawmills STONE, CLAY, GLASS PRODUCTS Brick, tile, terra cotta Cement Glass Marble, granite, slate Pottery TEXTILES, PRODUCTS Fabrics Carpets, rugs Cotton goods Cotton small wares Dyeing, finishing textiles Hats, fur-felt Hosiery Knitted outerwear Knitted underwear Knitted cloth Silk, rayon goods Woolen, worsted goods Wearing apparel Clothing, men's Clothing, women's Corsets, allied garments Men's furnishings Millinery Shirts, collars Revised. __. June 92.4 79.7 104.6 93.4 84.6 101.8 84.3 88 87 70 84 49 70 74 133 76 84 60 103 75 121 90 70 87 52 84 74 141 77 88 61 91 77 138 90.4 96 93 73 90 54 72 76 147 75 88 67 98 84 136 85.4 94 134 78 83 75 121 103 62 123 87.3 98 134 81 83 75 122 119 63 126 92.0 75.9 107.3 64.4 774 65 30 16 87.3 127 71 62 70 July 93.5 83.0 103.5 Sept. Oct, June 100.0 89.4 110.2 103.3 95.5 110, 81.6 68.1 96.7 84.2 74.6 94.9 86.5 80.7 93.0 92.3 97 97 75 92 56 76 78 '153 78 90 72 107 84 116 96.4 101 100 75 97 59 83 80 156 81 92 74 107 86 145 106.0 115 113 76 104 65 88 82 162 86 97 76 106 91 166 70.1 70 81 57 72 46 68 59 134 57 76 48 105 66 122 76.7 100.3 106.5 95.6 113 116 119 114 118 127 127 128 125 126 87 92 88 97 87 96 97 105 99 83 84 91 83 147 156 140 171 145 130 150 136 177 120 77 77 78 80 75 122 121 124 118 125 80.2 90.8 79.9 r75.2 95.7 103.1 799 1,305 1,399 1,414 1,467 1,558 86 92 76 97 105 70 35 28 32 33 40 32 26 29 28 16 26 29 126 124 129 95 133 122 91.3 91.5 91.3 94.7 100.4 110.6 133 144 151 150 154 168 102 104 115 104 108 131 80 86 80 83 90 84 100 85 87 94 107 97 88 71 71 73 99 72 68 63 69 73 77 77 76 75 72 84 95 93 75 87 54 69 77 144 76 100 80 126 66.3 83 60 61 66.7 84 60 61 68.7 88 61 63 73.3 55 75.7 56 71 93 48 84 80.5 61 72 99 52 79.7 62 73 96 54 82 62 73 99 53 85 100.9 89.0 71 84 78 116 96 151 78 70 139 64 76 123.3 107 178 105 148 87 122 98.0 89.6 73 84 77 117 86 149 71 75 135 59 85 112.6 100 158 113 127 68 119 98.1 91.1 74 86 80 119 90 149 72 73 136 60 86 109.5 105 144 112 124 56 118 103.5 93.1 76 87 81 122 94 152 78 77 140 63 86 122.1 110 174 114 131 78 120 75 114 97 148 75 69 133 66 77 125.! 110 184 103 137 93 121 1939 '96.3 '83.9 108.0 65.2 84 56 101.3 88.4 1938 Aug. Sept. Oct 65.3 84 56 87 49 Factory payrolls July 84.4 76.0 Aug. Sept. Oct, '81.5 99.0 93.6 87.5 100.5 101.3 99.0 103.9 57 78 51 89 62 149 63 83 49 91 70 142 82.6 86 90 66 82 56 74 68 146 63 77 59 103 79 138 78.6 '88.0 82 93 83 104 66 68 72 80 55 59 65 80 65 71 137 156 60 68 73 78 59 64 115 103 79 72 116 124 91.5 95 109 63 85 63 91 72 156 71 82 63 117 82 161 111.5 124 136 72 95 75 97 80 170 83 93 69 111 92 183 77.8 93 122 76 88 64 117 92 53 114 81.1 99 121 81 88 65 120 108 55 126 95.4 127 125 92 114 77 166 105 73 113 94.0 123 123 91 110 75 166 114 75 113 100.9 125 124 98 116 80 182 139 73 122 111.1 131 126 106 130 64.1 726 66 24 11 95 83.5 774 1,299 91 89 22 30 11 25 136 78.7 135 93 75, 78 58 55 65 85.4 144 100 82 88 65 61 67 84.0 157 103 76 70 56 58 72 70.1 91 62 72.5 94 59.6 72 45 55 59.7 72 45 54 60.1 69 48 56 81.8 63 72 101 52 83.6 63 72 106 52 61.5 42 62 87 34 67 66.3 44 64 98 33 77 70.6 50 68 101 40 73 104.5 93.5 78 90 84 125 90 150 79 78 143 63 82 124. Ill 179 116 133 89 123 108.4 98. 83 94 92 133 86 155 81 81 152 67 91 124.8 110 178 118 145 83 127 86.4 75.8 54 71 69 98 94 163 58 59 115 53 61 101.5 83 142 103 123 102 95 85.1 77.4 59 73 75 101 77 171 63 62 118 53 62 94.7 77 132 112 138 70 96 79. 75.6 57 71 70 97 74 148 56 67 111 48 71 82.3 74 106 117 111 45 124 119 93 114 78 161 123 75 117 170 76 126 '78.3 99.5 109.0 1,381 1,362 1,514 112 103 '75 36 28 27 25 27 26 143 128 135 96.6 113.5 83.4 191 167 148 163 154 123 107 '111 99 89 76 85 93 84 77 69 82 58 75 54 71 59 66 51 81 71 71 71 1,338 73 25 27 132 62.9 76 50 57 63.4 78 50 56 85 52 61 71.7 50 70 103 '41 75 71.8 50 68 105 39 75 78.5 55 72 121 40 79 79.3 88.3 76.5 '80.3 64 57 75 73 76 73 103 98 84 82 '162 144 64 57 65 68 114 117 52 48 72 73 79.7 '98.3 '86 78 133 97 112 113 120 106 37 67 103 91 81.0 68 79 82 108 74 156 62 67 121 52 68 92.1 80 118 120 121 81 102 93.9 88.2 75 84 89 115 61 176 68 75 132 57 77 99.0 84 133 127 144 64 116 56.3 68 ' 45 50 92 40 1126 FEDERAL RESERVE BULLETIN DECEMBER 1939 FACTORY EMPLOYMENT AND PAYROLLS, BY INDUSTRIES (WITHOUT SEASONAL ADJUSTMENT) —Continued [Index numbers of the Bureau of Labor Statistics; adjusted to Census of Manufactures through 1937. 1923-25 average=100] Factory employment Industry and group 1938 Sept. LEATHER, MANUFACTURES Boots, shoes Leather FOOD, PRODUCTS Baking Beverages Butter Canning, preserving Confectionery Flour Ice cream Slaughtering, meat packing. Sugar, beet Sugar refining, cane TOBACCO MANUFACTURES.. Tobacco, snuff Cigars, cigarettes PAPER, PRINTING Boxes, paper Paper, pulp Book, job printing Newspaper, periodical printing. CHEMICAL, PETROLEUM, AND COAL PRODUCTS Petroleum refining Other than petroleum Chemicals Cottonseed oil, cake, meal Druggists' preparations Explosives Fertilizers Paints^ varnishes Rayon, allied products Soap RUBBER PRODUCTS Rubber boots, shoes Rubber tires, inner tubes. Rubber goods, other 98.2 99 80 Factory payrolls 1938 1939 Oct. 95.4 95 83 150.2 146 281 100 317 92 78 82 97 107 100 133.9 145 263 96 172 97 78 72 67.8 64 67.7 109.4 107 104 98 114 96 June July Aug. 94.1 93 85 19.7 100. 7 127.2 147 298 103 141 72 79 92 99 54 91 135.0 147. 0 148 147 301 295 104 103 197 289 70 79 83 80 93 89 101 100 57 100 Sept. Oct. Sept. 1939 Oct. June July 79.5 78 77 74. 71 79 74.6 70 82 83.6 82 82 '•84. 6 83 83 76.6 72 84 76.5 71 150.7 148 287 99 304 91 84 82 101 121 91 137.1 148 270 95 177 96 83 73 103 290 101 135.8 137 320 85 257 92 78 66 106 105 125.4 133 293 81 141 93 77 60 107 246 82 123.8 138 355 87 110 69 74 75 107 59 77 128.6 139 359 89 154 64 80 77 109 54 81 135.1 135 350 87 251 77 77 74 106 86 81 139.6 139 336 84 264 92 129.7 137 308 82 153 95 83 63 108 241 87 71 62 62.9 63 63 61.5 65 60 61.8 67 61 62.7 67 62 62.9 67 62 63.3 71 62 102.0 117 101 86 102 103.7 125 108 83 102 109.3 133 113 86 110 113.7 150 126 84 110 119.1 136 113.9 136 48 122 109 63 126 247 102 124. 135 121.4 140 94 125 114 86 128 286 107 133.6 141 131.4 158 114 135 125 82 135 303 109 '86.3 58 79 127 91.2 62 83 135 102.2 64 91 162 Underlying figures 66.' 61 67 66.4 61 67 66.7 62 67 110.1 112 105 99 114 109.8 108 106 97 114 110.1 110 106 99 112 110.9 114 107 113.2 119 109 98 116 116.4 128 114 99 117 102. 4 118 102 83 105 105.1 126 107 83 107 103.5 118 105 84 106 114. 122 112.7 115 131 111 89 92 117 302 83 114.9 121 113.5 117 140 112 88 89 118 301 83 109.8 110.4 122 121 107.2 rlO7. 7 117 117 54 49 108 108 90 91 79 73 124 122 286 297 82 109. 2 123 105. 119 57 110 93 74 122 255 117.7 123 116.4 124 113 114 100 98 122 300 122.0 123 121.8 134 132 117 104 98 125 310 91 118.1 135 112.9 124 106 118 98 78 117 282 119.3 133 115.1 130 115 124 101 70 119 277 118.7 rll7. 9 132 134 113.9 rll3.7 132 131 42 45 121 119 101 103 63 65 124 129 272 283 97 75.8 56 61 123 77.6 58 63 125 56 66 129 60 70 142 92.5 62 74 157 74.8 56 77.7 59 67 120 82.1 55 75 122 133 Oct. 96.1 94 65.4 59 66 82.6 59 Sept. 97.8 97 87 65.2 61 78.7 45 67 131 Aug. 114 81.5 43 77 121 108 117 86 r Revised. NOTE.—Figures for October 1939 are preliminary. Back data m a y be obtained from the Bureau of Labor Statistics. are for payroll period ending nearest middle of m o n t h . 1127 FEDERAL RESERVE BULLETIN DECEMBER 1939 CONSTRUCTION CONTRACTS AWARDED, BY TYPES OF CONSTRUCTION [Figures for 37 States east of the Rocky Mountains, as reported by the F . W. Dodge Corporation. Value of contracts in millions of dollars.] Month January . February March____ ApriL May June July August _ September October. _ November December Year Nonresidential building Residential building Total 1938 1939 1938 ? 1939 192.2 118.9 226.9 222.0 283.2 251.0 239.8 313.1 300.9 357.7 301.7 389.4 251.7 220.2 300.7 330.0 308.5 288.3 299.9 312.3 323.2 261.8 36.2 40.0 79.4 74.6 83.2 85.7 88.0 99.7 99.6 112.7 95.3 91.5 80.2 79.0 125.2 114.4 133.8 111.9 109.3 127.2 129.7 118.3 3,196.9 Commercial Factories 1938 1939 6.6 4.9 15.7 11.5 8.6 10.7 9.7 11.3 10.7 13.8 10.5 7.0 1938 121.1 985.8 1939 15.4 13.0 20.2 18.9 19.2 18.8 26.2 18.3 14.0 24.2 13.7 14.0 7.1 9.5 13.0 17.5 13.0 15.8 17.4 10.4 20.7 16.8 Educational * 1938 1939 19.0 15.4 21.0 16.9 11.8 14.7 10.7 21.4 33.9 47.0 49.0 73.3 17.3 13.5 17.4 21.3 19.5 26.8 22.9 21.1 26.6 22.6 1938 31.7 21.8 27.6 21.1 16.4 12.6 19.4 13.8 10.1 9.5 334.1 215.8 Public works and public utilities' Other i 16.4 15.1 31.0 33.1 38.2 37.7 26.1 36.3 33.4 46.0 42 8 45.2 1939 1938 28.9 24.7 39.8 34.8 27.8 37.8 28.7 24.6 24.9 23.8 401.2 1939 86.5 71.8 77.7 121.0 97.9 83.6 102.1 116.3 111.1 70.8 98.6 30.5 59.7 67.0 122.2 83.5 79.3 126.1 109.3 114.0 90.4 158.4 1,139.0 i Not strictly comparable with data for earlier years due to changes in classification. CONSTRUCTION CONTRACTS AWARDED, BY TYPES OF FINANCING [Figures for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. Total Value of contracts in millions of dollars.] Privately-financed * Publicly-financed» Month 1934 1935 1936 1937 1938 1939 1934 1935 1936 1937 1938 1939 1934 1935 1936 1937 1938 186 97 178 131 134 127 120 120 110 135 112 93 100 75 123 124 127 148 159 169 167 201 188 264 215 140 199 235 216 233 295 275 234 226 208 200 243 188 231 270 244 318 322 281 207 202 198 209 192 119 227 222 283 251 240 313 301 358 302 389 252 220 301 330 308 288 300 312 323 157 65 126 78 72 73 52 69 69 79 74 61 65 38 68 53 47 64 67 92 97 114 118 196 149 79 96 105 94 116 153 153 116 101 89 82 112 69 66 74 93 137 131 104 80 78 93 115 118 51 95 99 144 108 98 171 160 203 179 279 148 111 128 160 135 128 137 158 144 29 31 52 53 63 54 67 51 41 57 38 32 45 37 55 71 80 84 93 76 70 87 70 68 66 62 103 130 122 116 141 122 119 125 119 117 130 119 165 195 151 180 191 178 127 124 106 94 75 68 132 123 139 143 142 142 141 154 123 110 1,543 1,845 2,675 2,913 3,197 975 1,007 1,334 1,152 1,705 837 1,341 1,761 1,492 January __ February March April May Jjinft ,_ July August September October November December Year . i Back figures —See BULLETIN for February 1938, p. 159. 568 1930 104 109 173 170 174 161 163 154 179 Data for years prior to 1932 not available. CONSTRUCTION CONTRACTS AWARDED, BY DISTRICTS COMMERCIAL FAILURES, BY DISTRICTS [Figures reported by Dun & Bradstreet. Amounts in thousands of dollars.] [Figures for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. Value of contracts in thousands of dollars.] Number Federal Reserve district Oct. Sept. Oct. 16,478 47,226 16,537 29, 485 28, 276 27, 571 44, 670 16, 523 10,041 10, 299 14, 690 21, 288 58,465 18,907 34, 232 32,058 27,982 63,806 21, 274 8,923 11,809 24,483 35,895 82,441 16, 582 33,089 34, 205 28,082 65,861 20,716 10,627 11,154 19,046 261, 796 323, 227 357, 698 Federal Reserve district .._ Total (11 districts) 1938 1939 Oct. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas Liabilities 1938 1939 Sept. Oct. Oct. Sept. Oct. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis.. __ Minneapolis Kansas City Dallas San Francisco 90 260 47 52 47 65 137 38 13 38 22 107 67 220 52 38 31 33 112 26 21 42 21 95 85 257 67 83 51 54 127 42 25 48 21 137 1,608 3,549 1,024 1,348 750 1,137 3,158 216 155 350 555 2,290 1,198 2,448 1,077 771 381 328 1,262 301 104 283 257 992 1,036 5,107 770 948 442 476 1,843 477 210 443 316 1,151 Total 916 758 997 16,140 9,402 13,219 1128 FEDERAL RESERVE BULLETIN DECEMBER : MERCHANDISE EXPORTS AND IMPORTS [In millions of dollars] Merchandise imports * Merchandise exports 1 Excess of exports Month 1935 1936 1938 1937 1939 1935 1937 1936 1938 1935 1939 1936 1937 1939] 1938 January February March 176 163 185 199 182 195 223 233 257 289 262 275 213 219 268 167 152 177 187 193 199 240 278 307 171 163 173 178 158 190 9 11 8 11 —11 -4 -18 -45 -51 118 99 102 35 61 April May June — _- 164 165 170 193 201 186 269 290 265 274 257 233 231 249 236 171 171 157 203 192 191 287 285 286 160 148 146 186 202 179 -6 —5 13 -10 9 —5 -18 5 -21 115 109 87 45 47 57 July August September _ 173 172 199 180 179 221 268 277 297 228 231 246 230 251 289 177 169 162 195 193 216 265 246 233 141 166 168 169 176 181 -3 3 37 -15 —14 5 3 31 63 87 65 79 61 75 107 October November December- 221 270 223 265 226 230 333 315 323 278 252 269 P332 189 169 187 213 196 245 224 223 209 178 176 171 P215 32 100 37 52 30 -15 108 92 115 100 76 98 Year 2,283 2,456 3,349 3,094 2,047 2,423 3,084 1,960 235 33 265 1,134 77 P117 p Preliminary. i Including both domestic and foreign merchandise. » General imports, including merchandise entered for immediate consumption and that entered for storage in bonded warehouses. Source.—Bureau of Foreign and Domestic Commerce. Back figures.—See BULLETIN for January 1931, p. 18, for July 1933, p. 431, and for February 1937, p. 152. FREIGHT-CAR LOADINGS, BY CLASSES DEPARTMENT STORES—SALES, STOCKS [Index numbers; 1923-25 average=100] [Index numbers based on value figures; 1923-25 average=100] 1938 Oct. Sales i Stocks (end of month) Without Adjusted seasonal for seasonal variation adjustment Without Adjusted seasonal for seasonal adjustment variation 1939 June July Aug. Sept. Oct. Month Adjusted for seasonal variation Total Coal Coke Grain and grain products... Livestock Forest products . Ore Miscellaneous1 Merchandise ._ _ 68 69 50 95 44 42 48 72 62 67 68 51 90 36 40 64 71 61 69 76 62 80 39 43 59 72 62 70 78 69 75 37 42 67 74 62 77 85 80 87 82 88 45 45 85 82 63 95 87 44 50 108 86 62 Without seasonal adjustment Total Coal Coke Grain and grain products Livestock Forest products Ore. M iscellaneous1 Merchandise 75 76 50 95 62 43 71 82 65 67 58 47 89 30 42 108 74 61 70 64 52 111 34 43 112 74 61 71 69 57 90 37 44 125 75 62 85 89 78 99 57 49 149 92 65 1938 1939 1938 1939 1938 1939 1938 January February.. March 90 88 86 88 87 88 70 70 77 69 69 82 71 70 70 67 68 68 63 67 71 60 65 69 April May June 83 78 82 88 85 86 86 80 79 88 87 83 69 69 68 67 66 67 71 71 65 69 68 64 83 83 86 86 89 91 58 65 91 60 69 97 67 67 67 67 67 68 61 65 70 60 65 71 84 89 89 90 92 99 156 99 67 67 66 69 74 78 62 77 July August September 89 October ___ 96 November 95 December 87 62 52 160 97 65 Year __ 85 1939 68 1 Based on daily average sales—with allowance for changes from month to month in number of Saturdays and in number of Sundays and holidays. Adjustment for seasonal variation makes allowance in March and April for the effects upon sales of changes in the date of Easter. 1 In less-than-carload lots. Back figures.—Department store sales, see BULLETIN for August NOTE.—For description and back data see pp. 522-529 of BULLETIN 1936, p. 631, and for October 1938, p. 918; department store stocks, see for June 1937. Based on daily average loadings. Basic data compiled BULLETIN for March 1938, p. 232. by Association of American Railroads. Total index compiled by combining indexes for classes with weights derived from revenue data of the Interstate Commerce Commission. 1129 FEDERAL RESERVE BULLETIN DECEMBER 1939 WHOLESALE PRICES, BY GROUPS OF COMMODITIES [Index numbers of the Bureau of Labor Statistics. 1926=100] Other commodities All commodities Farm products Foods 95.3 86.4 73.0 64.8 65.9 74.9 80.0 80 8 86.3 78.6 104.9 88.3 64.8 48.2 61.4 65.3 78.8 80.9 86.4 68.5 99.9 90.5 74.6 61.0 60.5 70.5 83.7 82.1 85.5 73.6 91.6 85.2 75.0 70.2 71.2 78.4 77.9 79.6 85.3 81.7 109.1 100.0 86 1 72.9 80.9 86.6 89.6 95.4 104.6 92.8 90.4 80.3 66.3 54.9 64.8 72.9 70.9 71.5 76.3 66.7 83.0 78.5 67.5 70.3 66.3 73.3 73.5 76.2 77.6 76.5 100.5 92.1 84.5 80.2 79.8 86.9 86.4 87.0 95.7 95.7 95.4 89.9 79.2 71.4 77.0 86.2 85.3 86.7 95.2 90.3 94.2 89.1 79.3 73.5 72.6 75.9 80.5 80.4 83.9 77.6 94.3 92.7 84.9 75.1 75.8 81.5 80.6 81.7 89.7 86.8 82.6 77.7 69.8 64.4 62.5 69.7 68.3 70.5 77.8 73.3 78.3 77.6 77.5 77.0 68.1 66.8 67.8 67.6 74.5 73.5 74.1 73.1 81.3 81.1 80.6 80.3 92.0 93.4 94.6 93.1 65.8 66.2 66.2 65.8 76.6 75.4 73.7 73.2 95.5 95.3 94.9 94.6 89.5 89.8 89.2 89.4 77.3 77.1 76.6 76.7 86.2 85.7 85.8 86.0 72.4 72.6 73.0 73.1 1939—January February March April . May „ June _ July August September October... 76 9 76.9 76.7 76 2 76.2 75 6 75.4 75 0 79.1 79.4 67.2 67.2 65.8 63.7 63.7 62.4 62.6 61 0 68.7 67.1 71.5 71.5 70.2 68.6 68.2 67.6 67.5 67 2 75.1 73.3 80.2 80.2 80.4 80.5 80.6 80.2 80.2 80.1 82.1 83.8 93.1 91.9 91.8 90.9 91.6 92.3 92.5 98.5 104.6 65.9 66.1 66.6 66.9 67.5 67.3 67.6 67.8 71.7 75.5 72.8 73.0 73.1 73.4 73.9 73.0 72.8 72 6 72.8 73.9 94.4 94.3 94.3 94.0 93.5 93.2 93.2 93 2 94.8 95.8 89.5 89.6 89.8 89.6 89.5 89.5 89.7 89.6 90.9 92.8 76.7 76.3 76.5 76.0 75.9 75.7 75.0 74.6 77.3 78.1 85.4 85.2 85.2 85.4 85.5 85.6 85.6 85.6 86.6 87.8 73.2 73.5 74.1 74.4 74.2 73.8 73.4 73.3 76.6 77.6 Week ending— 1939—August 5 August 12 August 19 August 26 . September 2 September 9 September 16. September 23 September 30 October 7__ October 14 October 21 October 28 . . . November 4 November 11 November 18 75 1 74.8 74.6 74.8 75.3 78 4 79.3 79.6 79 5 79.0 78.9 79.4 79.2 79.3 79.3 79.1 62.5 61.4 60.4 61.1 62.7 68.1 69.7 69.5 69.3 66.8 66.7 67.5 67.2 67.5 67.8 67.3 67.2 66.7 66.2 66.7 68.5 74.5 75.5 75.1 74.4 72.9 72.7 73.2 72.3 72.3 72.4 72.3 80.5 80.5 80.4 80.4 80.4 81.7 82.4 83.0 83.3 83.7 83.7 84.1 84.2 84.4 84.4 84.4 93.7 93.5 9?. 8 92.6 9? 7 96.0 98.3 100.4 104.1 105.2 105.0 105.4 105.5 104.4 104.5 104.3 67.4 67.2 67.4 67.4 67.2 68.4 71.4 72.3 73 4 73.8 74.2 74.8 75.2 75.6 75.6 75.6 73.4 73.5 73.6 73.2 73.2 74.0 74.1 74.2 74.4 74.8 74.4 74.6 74.6 74.7 74.7 74.8 93.4 93.5 93.5 93.5 93.5 94.6 94.9 95.3 95 2 95.1 95.3 96.3 96.3 96.2 96.2 96.1 90.1 90.1 89.5 89.7 89.7 90.1 90.7 91.0 91.2 91.8 92.5 92.5 93.0 93.1 93.1 92.9 74.5 74.3 74.2 74.2 74.4 75.9 77.1 77 9 78.5 77.9 77 fi 78.0 77.9 77.7 77.9 77.8 87.0 87.0 87.0 87.0 87.0 87.0 87.1 88.8 89.1 89.1 89.2 89.2 89.3 89.6 89.7 89.7 73.0 73.0 73.0 73.1 73.2 76.1 76.1 76.6 76.7 77.1 77.0 77.2 77.4 77.9 78.2 78.2 Year, month, or week 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 . __ 1938—September October November December . Total 1938 Hides and Textile Fuel and Metals Building Chemi- House- Miscelleather lighting and metal cals and furnishproducts products materials products materials drugs ing goods laneous Q2. 7 1939 1938 Subgroups Oct. July Aug. Sept. Oct. 50.8 76.2 65.0 52.3 69.7 60.7 51.5 65.1 66 0 76.3 60.1 64.6 61.6 70.5 66.1 71.6 75.1 57.5 83 3 70.4 64.6 71.9 62.0 75.3 60.4 67 9 71.9 58 5 73 7 60.3 74.5 78.8 62.8 81 0 71.7 78.9 78.0 60.2 74 9 70.2 100 3 100.8 100 8 82.1 76.9 77.2 84.6 84.1 84.0 96.9 95.6 97.1 L01 8 97.4 92.0 97.1 105.7 112.4 97.8 99.3 81.2 65.1 60.2 40.2 75.4 64.1 81.7 70.4 62.8 43 4 84.0 69.8 83.2 74.3 63.5 46 2 91.3 78.3 FARM PRODUCTS: Grains Livestock and poultrv Other farm products FOODS: Dairy products Cereal products Fruits and vegetables Meats Other foods _ H I D E S AND LEATHER PRODUCTS: Shoes . Hides and skins Leather Other leather produci s. . . TEXTILE PRODUCTS: Clothing Cotton goods Hosiery and underwear _ Silk and rayon Woolen and worsted goods Other textile product 5 . 81.6 64.6 59.9 30 9 76.3 65.3 81.5 65.5 61.5 39 5 75.5 63.7 FUEL AND LIGHTING MI LTERIALS Anthracite.. Bituminous coal Coke Electricity. Gas Petroleum products.. 1939 Subgroups 79.1 72.6 72.1 72.5 75.3 98.7 95.8 96.0 96.7 98.2 104.2 104.2 104 2 L04.2 108.0 81.8 78.1 75.8 87 1 89.0 86 7 87.2 53.8 52.2 51.7 53.3 54.0 Oct. July Aug. Sept. Oct. 95.4 96.8 96.9 95.0 76 2 78.5 93.4 94.7 95.1 93 0 73 3 79.3 93.5 94 7 95.1 92 5 74 6 79.3 93.5 94.7 95.5 92.1 84 7 79.3 93.4 94.6 96.0 93.9 85.3 79.3 91 1 90 6 90.7 91.5 90 3 91.8 81 1 82 2 78.5 79.3 L07. 3 107.3 89.6 91.7 90 5 91.3 91 8 82 1 79.3 107.3 89.5 91 0 91.3 93.7 84 7 79.3 107.3 90.3 91.5 91.3 98.0 85 7 79.3 107.3 91.9 82.1 74.4 70.6 72 6 METALS AND M E T A L PRODU CTS: Agricultural implements Farm machinerv Iron and steel. Motor vehicle 5 1 Nonferrous metals Plumbing and heating BUILDING M A T E R IALS! Bri(Vk" a n d til p. Cecdent Luinber Paint and paint materials Plumbing and heating Structural stee 1 Other building materials CHEMICALS AND DRUGS: Chemicals Drugs and pharmaceutic als Fertilizer materials 80.5 74.9 67 5 73 4 78.2 71.8 67.5 72 6 77.5 71.7 67.2 72 9 81.2 72.8 69.2 72 6 Fur nishings Fur niture __ _ _ 89.3 82.1 90.0 81.0 90.0 81.1 91.7 81.3 __ 57.4 60.5 72 4 79.9 34.7 81.3 MiXP.d fp.rtili7P.rs HOUSEI'URNISHING GOODS: MISCELLANEOUS: Auto tires and tubes ._ Cattle feed Paper and puln Rubber, crude Other miscella neous 66 5 81.7 35.3 81.2 93.7 81.7 60.5 60.5 60.5 68 4 93 4 82 9 80.0 81.8 86.3 34.9 47.7 42.7 81.3 82.8 85.4 1 Preliminary revision. 2 Revised series. Backfigvr<?.—Tor n ontl ly and arrival ir dej>e>" of grcujs, see Annual Eepcrt for 1937 (table 86); for indexes of subproups, see Annual Report for 1937 (table 87). 1130 FEDERAL RESERVE BULLETIN DECEMBER 1939 NOVEMBER CROP REPORT, BY FEDERAL RESERVE DISTRICTS [Based on estimates of the Department of Agriculture, by States, as of November 1, 1939] i [In thousands of units] Cotton Federal Eeserve district Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis _ Minneapolis. _ _ Kansas City Dallas. San Francisco Production 1938 Estimate Nov. 1, 1939 Production 1938 1938 Estimate N o v . 1, 1939 Production 1938 Estimate N o v . 1, 1939 Bales Bales Bushels Bushels Bushels Bushels Bushels Bushels 7,663 27, 343 50,942 208, 517 139, 741 146, 651 1,124, 515 337,888 277,850 170, 505 92, 550 6,898 8,324 19,810 52, 956 27, 263 6,572 67, 734 66,081 30, 268 287, 758 36,020 83,851 6,876 17,067 41, 692 24,092 5,521 56, 474 55,903 24,788 223,169 30,402 64,726 68 108 139 120 63 74 165 87 1,847 143 189, 588 10,148 102 41, 901 1,922 97 152,933 4,918 97 28, 379 2, 591,063 686, 637 550, 710 244,164 188, 735 467 3,819 600 415 3,675 593 7,633 29,317 52, 521 199, 591 138, 232 194,289 1,038, 749 332,179 227,136 224, 284 91, 577 6,730 11,943 11, 845 2, 542, 238 1,382 2,399 3 2 3, 386 ___ 3, 381 Oats Federal Reserve district Boston New York Philadelphia Cleveland Richmond _ . Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total _. Spring wheat Estimate N o v . 1, 1939 Production 1,048 2,623 Total Winter wheat Corn White potatoes Tobacco Tame hay Estimate N o v . 1, 1939 Production 1938 Estimate Nov. 1, 1939 Production 1938 1938 Estimate N o v . 1, 1939 Production 1938 Bushels Bushels Tons Tons Pounds Pounds Bushels Production Estimate N o v . 1, 1939 6,326 27, 708 19, 222 49,425 20,949 15,276 430, 768 51, 571 235, 287 134,530 39, 563 23, 214 6,765 27,380 16,723 46,240 21,848 14,606 368,452 42,659 253,130 76,908 35, 363 31,156 3,523 5,737 2,376 5,478 3,729 3,419 18, 379 6,825 10,745 7,002 1,403 11,683 3,339 4,470 1,954 5,013 3,471 3,198 17, 396 7,103 9,868 6,433 1,351 11,427 22,847 1,842 32,110 105,694 746,014 188,189 33, 239 241, 254 2,733 4,612 34,853 2,277 36,085 115,981 977,060 196,164 33,364 256,432 2,809 4,384 47,316 32,123 22,996 20,554 27, 261 15,466 53, 457 13,978 43,347 26,160 3,778 65,181 Bushels 47,359 30,081 21,745 20,301 23,146 14,589 48, 954 11,869 42, 517 29,157 3,393 68,654 1,053,839 941, 230 80, 299 75,023 1, 378, 534 1, 659,409 371,617 361, 765 1 Figures for spring wheat, oats, and tame hay from estimates for Oct. 1, for winter wheat from Aug. 1. No estimate made for Nov. 1. Includes 16,000 bales grown in miscellaneous territory. Includes 18,000 bales grown in miscellaneous territory. 2 3 1131 FEDERAL RESERVE BULLETIN DECEMBER 1939 STATISTICS FOR FEDERAL RESERVE CHART BOOK Chart book page 1939 Oct. 25 Oct. 18 WEEKLY FIGURES Nov. 1 Nov. Reserve bank credit—total._ Bills discounted Bills bought U. S. Gov't securities... Gold stock Money in circulation Treasury cash Treasury deposits Member bank balances Required reserves e Excess reserves—total2 New York City 2 Chicago 2 2 Reserve city banks Country banks 2 3, 5 5 5 5 3 3, 9 3 3 3, 6 6 7 7 7 7 7 2.82 .01 Aug. MONTHLY FIGURES Wholesale commodity prices: 4 United States: All commodities 31, 32 Farm products __ 31 Foods 31 2.65 Other commodities... 31 17.24 England 32 7.38 France 32 2.34 Germany ___ 32 .56 [ndustrial production « 35 11.59 Manufacturing production: 6 6.42 Total.. 6 __ 37 P5.20 Durable 37 2.71 Nondurable 6 37 .50 Factory employment 43 1.28 Factory payrolls.__ 43 P. 71 Freight-car loadings 6 45 Department store sales 6 5 47 Department store stocks 47 2.77 .01 2.72 .01 2.75 17.00 7.33 2.22 .35 11.91 6.40 5.54 3.00 .51 1.31 .72 2.74 17.04 7.30 2.23 .33 11.95 6.42 5.59 3.02 .53 1.34 .70 2.72 17.10 7.35 2.25 .35 11.81 6.44 2.69 17.13 7.41 2.26 .35 11.75 6.40 P5. 36 2.77 .52 1.34 p. 72 14 14 14 22.56 14.14 8.42 22.66 14.18 8.48' 22.73 14.21 8.52 22.84 14.31 8.52 23.01 14.47 8.55 15 15 15 15 15 18.57 5.24 .54 7.88 .80 18.72 5.25 .54 7.85 .82 18.56 5.25 .54 7.95 .73 18.66 5.25 .54 7.95 .72 18.60 5.26 .53 8.12 .71 16 16 16 16 4.43 1.19 1.66 .43 4.50 1.17 1.66 .47 4.58 1.15 1.67 .47 4.64 1.19 1.67 .47 4.73 1.19 1.68 .46 17 17 17 6.37 2.15 2.62 6.35 2.15 2.63 6.34 2.15 2.64 6.33 2.15 2.66 6.40 2.15 (l) P5.50 2.92 .54 1.34 P. 70 MONEY RATES AND SECURITY MARKETS 2.72 .01 Stock prices, total < 27, 29 Industrial 27 Railroads 27 Public utilities 27 Volume of trading 2 (mill, shares) 29 Brokers' loans (mill, dollars) 29 1.00 .69 .44 .05 .70 2.55 3.14 4.88 1.00 .69 .44 .05 .65 2.51 3.09 4.84 1.00 .69 .44 .05 .69 2.52 3.07 4.83 1.00 .69 .44 .05 .68 2.51 3.01 4.85 1.31 593 1.21 603 OTHER Oct 79.5 111 104 43 62 96.4 89.8 70 89 67 111 48 63 100.0 93.6 77 91 68 79.4 67.1 73.3 83.8 P89. 3 P120 Phi P63 P103. 3 P101. 3 80 90 69 of dollars 299 123 176 297 125 172 P314 251 176 75 289 181 107 P332 P215 P117 5,811 5,400 3,665 2,146 5,900 6,010 3,674 2,226 643 293 308 42 847 444 337 66 P124 P190 P6, 009 P6, 204 P3, 791 v2, 218 474 338 82 In billions oj dollars 16.65 1.16 2.71 .77 20 20 20 20 20 QUARTERLY FIGURES 1.16 594 Figures for week3; in unit BUSINESS CONDITIONS 1.00 .63 .44 .05 .63 2.47 2.99 4.87 entral gold reserves: United States England France Netherlands U. S. Gov't interest-bearing debt—total Bonds Wednesday figures; in unit indicated Notes Bills 96 94 97 95 94 Special issues 110 113 115 112 111 31 33 34 32 32 87 86 88 87 87 1.15 548 79.1 68.7 75.1 82.1 84.9 75.0 61.0 67.2 80.1 79.2 97 0 79.7 103 In millions Construction contracts awarded: 7 41 Total _ 41 Eesidential. _ 41 Other xports and imports: 49 Exports (incl. re-exports). 49 General imports __ 49 Excess of exports Income payments: 50 Total 6 50 Total unadjusted 5 50 Salaries and wages 50 Other * iash farm income: 51 Total 51 Crops 51 Livestock and products.. 51 Government payments... Averages of daily figures*; per cent per annum F.R.bankdiscountrate,N.Y. 19 Commercial paper 19 Bankers' acceptances 19 U. S. Treasury bills 21 U. S. Treasury notes 21 U. S. Treasury bonds 21, 25 Corporate Aaa bonds 25 Corporate Baa bonds 25 Sept. Index numbers 1923-25=100 BUSINESS CONDITIONS 2.77 .01 REPORTING MEMBER BANKS Total, 101 cities: Loans and investments. Investments Loans. Adjusted demand deposits Time deposits U. S. Gov't deposits Domestic bank balances Foreign bank balances._ New York City: U. S. Gov't obligations.. Other securities Commercial loans Brokers' loans 100 cities outside New York: U. S. Gov't obligations.. Other securities Commercial loans Wholesale commodity prices: All commodities Farm products Foods Other commodities _ Steel plant operations (% of capacity) Automobile production (thous. cars) Electric power production (mill. kw. hrs.) Total freight-car loadings (thous. cars) Nov. 15 Wednesday figures; in billions of dollars RESERVES, GOLD, AND CURRENCY 1939 Chart book 16.93 0) 17.09 0) 2.71 76 40.35 27.31 7.24 1.31 4.49 2.71 .75 40.34 27.35 7.23 1.31 4.46 40.53 27.39 7.23 Jan.Mar. 1939 Apr.June 1939 JulySept. 1939 P. 1.41 4.50 In millions 0] dollars indicated 4 33 33 33 33 79.4 67.5 73.2 84.1 79.2 67.2 72.3 84.2 79.3 67.5 72.3 84.4 79.3 67.8 72.4 84.4 79.1 67.3 72.3 84.4 38 90.3 90.2 91.0 92.5 93.5 38 70.1 78.2 82.7 86.2 86.7 39 2,494 2,539 2,537 2,514 2,514 39 861.2 834.1 805.9 786.0 771.4 Domestic corporation security issues, total New Refunding 276 82 193 ••662 130 -532 Per cent per Customers' rates:8 New York City 7 other Northern and Eastern cities 11 Southern and Western cities '648 '92 ••556 annum 23 2.13 2.15 2.04 23 3.05 3.05 2.78 23 3.77 3.62 3.31 r v Preliminary. Revised. • Estimated. • Points in total index of manufacturing production. 1 Less than $5,000,000. f Three-months moving average adjusted for seasonal variation. » Averages of daily figures, see footnote1. « Revised series. See pp. 963-969 of the November 1939 BUL»Figures are shown under the Wednesday date included in the weekly period. LETIN. «Index numbers, 1926=100. • Adjusted for seasonal variation. NOTE.—Copies of this chart book can be obtained at a price of 50 cents, time. The latest figures appear on p. 1132 of this BULLETIN. Banking statistics for call report dates are published from time to 1132 FEDERAL RESERVE BULLETIN DECEMBER 1939 BANKING STATISTICS FOR CALL REPORT DATES—CHART BOOK SERIES [In billions of dollars] June 30 Dec. 31 Mar. June 30 Sept. 28 Dec. 56.79 25.69 25.23 5.42 57.42 25.96 25.26 5.53 56.83 26.26 24.05 5.69 56.78 26.34 24.13 5.50 56.74 26.27 24.39 5.47 57.64 26.18 25.19 5.49 59.12 26.30 26.10 5.82 11 11 11 11 21.35 11.16 5.75 32.53 21.40 11.35 5.30 32.74 20.39 11.52 5.44 31.75 20.51 11.59 5.62 31.52 20.89 11.56 6.10 30.72 21.60 11.46 6.09 31.63 22.29 11.51 6.51 32.07 22.36 11.60 6.82 32.10 23.59 11.72 7.10 32.60 25.12 11.75 <8.25 33.08 11 12 13 13 12 13 13 13 18.83 12.72 10.86 1.86 6.11 2.33 3.53 .25 18.45 12.69 10.87 1.82 5.77 2.13 3.40 .23 17.79 12.37 10.57 1.80 5.42 2.03 3.21 .18 17.98 12.45 10.63 1.83 5.52 2.19 3.15 .18 17.78 12.34 10.22 2.13 5.44 2.13 3.13 .18 18.69 13.01 10.71 2.30 5.68 2.30 3.19 .18 18.86 13.22 10.88 2.34 5.64 2.45 3.01 .18 19.05 13.35 10.69 2.66 5.70 2.55 2.96 .18 19.46 13.78 10.95 2.83 5.69 2.55 2.94 .19 19.61 13.81 10.89 2.92 5.79 2.76 ) 11 12 13 13 12,13 12 13 13 13 13.70 4.28 1.42 2.82 2.44 6.97 6.22 .71 .10 14.29 4.37 1.54 2.83 2.51 7.41 6.66 .64 .12 13.96 3.70 .95 2.75 2.55 7.71 7.00 .64 .07 13.55 3.54 .88 2.67 2.56 7.45 6.75 .61 .10 12.94 3.32 .70 2.61 2.61 7.01 6.40 .49 .12 12.94 3.30 .71 2.59 2.66 6.97 6.36 .48 .13 13.21 2 1.75 .97 2.78 2.72 2 8.74 2 5.45 .44 .12 3 2.73 13.05 1.57 .84 .73 2.75 8.73 5.53 .42 .10 2.67 13.14 1.47 .73 .74 2.83 8.85 5.57 .42 .06 2.80 13.47 All banks in the United States: Total deposits and currency.. Time deposits Demand deposits adjusted..._ Currency outside banks Member banks: Demand deposits adjustedTime deposits Interbank balances.. _ Loans and investments Investments, total. U. S. Government obligations, total Direct obligations.. Guaranteed obligations Other securities, total State and local government securities.. Other domestic Foreign securities Loans, total... Security loans, total 12 Brokers' loans Loans on securities (excluding brokers' loans; Real estate loans J I Other loans, total i Commercial loans 2 Open-market paper Loans to banks All other loans* p Preliminary. 1939 1937 Chart book page Mar. 31 31 Mar. June 29 30 Oct. , 990 •59.17 *60.95 47 P26. 72 J>26,800 13 J>27. 39 29, 170 P5.69 P6.05 *>6, 230 26. P26. 1 In chart 12 loans to banks on securities are included in the total of "security loans" prior to June 30, 1937 and in the total of "other loans" since that date. 2 Figures are reported on somewhat different basis beginning December 31, 1938. For detailed explanation of the changes and for estimates on old 3 basis as of December 31, 1938, see BULLETIN for April 1939, page 332. 4 Not originally plotted in chart book. 5 Partly estimated. Detailed breakdown of loans and investments now available on June and December dates only. INTERNATIONAL FINANCIAL STATISTICS 1133 1134 FEDERAL RESERVE BULLETIN DECEMBER 1939 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS [In millions of dollars] Countries in Tripartite Accord End of month 1934—December_ 1935—December. 1936—December. 1937—December. 1938—November. December. 1939—JanuaryFebruary . March April May June July August September. October_-_ 21,051 21, 604 22, 630 23, 964 8,238 10,125 11, 258 12, 760 1,584 1,648 2,584 2,689 5,445 4,395 2,995 2,564 25, 287 25, 468 14, 312 14, 512 2,690 2,690 2,435 2,435 24,003 24,175 24, 387 24, 964 25,140 25, 290 25, 512 26,118 P25, 235 2 . 277 14, 682 14, 874 15, 258 15, 791 15,957 16,110 16, 238 16, 646 16, 932 17,091 1,042 1,042 1,066 1,066 1,067 1,067 1,162 1,162 1 1 2,435 2,435 2,435 2,574 2,574 2,574 2,574 2,714 2,714 2,714 Other countries Switzerland Total i (52 Belcoun- United United King- France gium tries) States dom Netherlands 590 611 632 597 584 581 582 588 518 520 524 540 573 614 615 611 573 438 490 930 1,008 995 995 974 909 834 823 800 769 769 752 *>757 Argentina National B.I.S. Bank 624 454 655 648 699 699 699 680 640 598 598 598 595 585 585 579 Brazil British India Bulgaria Canada 275 275 275 274 274 274 274 274 274 274 274 274 274 274 *>274 P274 19 19 20 24 24 24 24 24 24 24 24 24 24 24 24 P24 134 189 188 184 186 192 197 206 210 212 214 213 212 218 218 212 403 444 501 469 434 431 431 431 428 428 428 428 427 431 P431 P431 Chile China 10 8 16 18 18 19 20 21 21 21 21 21 21 P21 Other countries—Continued End of month DenCo- Czechoslomark lombia vakia 112 112 91 92 83 83 83 83 67 66 65 62 60 60 58 1934—Dec... 1935—Dec... 1936—Dec... 1937—Dec... 1938—Nov... Dec... 1939—Jan Feb... Mar... April.. May.. June... July... Aug. _. Sept... Oct.... Egypt Germany 2 Greece 55 55 55 55 55 55 55 55 55 55 55 55 55 55 P55 40 34 26 24 27 27 27 27 29 29 31 31 30 28 28 P28 Hungary Italy 3 Japan 518 270 208 210 210 193 193 193 193 193 193 193 193 193 193 193 394 425 463 261 164 164 164 164 164 164 164 164 164 164 End of month 1934—Dec. 1935—Dec. 1936—Dec. _ 1937— Dec. 1938—Nov.. Dec. 1939—Jan.. Feb.. Mar. April MayJune. July. Aug.. Sept. Oct.. 16 South Africa 104 109 114 120 132 133 133 134 134 135 136 137 137 148 149 184 212 203 189 220 220 220 219 221 218 218 219 219 222 234 P234 68 69 69 P149 Spain * Sweden 740 735 718 718 525 525 525 525 525 525 525 525 525 525 525 159 185 240 244 321 321 331 331 332 339 344 346 348 355 357 332 Turkey Uruguay 22 24 26 29 29 29 29 30 30 30 30 30 30 30 29 P29 Mexico New Zealand Norway 61 84 98 82 96 94 96 96 96 107 107 107 107 107 107 P107 Peru Poland 19 20 20 20 19 20 19 19 19 19 19 19 19 19 96 84 75 83 84 85 85 85 85 84 84 84 84 84 P19 Government gold reserves1 not included in total for 52 countries Other countries—Continued Portu- Rumagal Java 68 68 P68 Yugoslavia other countries « 154 158 175 169 125 125 127 126 124 126 126 133 135 136 P131 P131 End of month 1934—Dec... 1935—Dec... 1936—Dec. _ 1937—Dec... 1938—Mar... June.. Sept... Oct.... Nov.__ Dec... 1939—Jan... J Feb.._ Mar... Apr. .. May_. June.July__ Sept. _ United United France States Kingdom Belgium 31 53 2 934 3 1, 395 1,489 81 "62 759 80 "154" () 1,732 * 103 130 331 381 465 559 455 477 "~85" 1 Reported at infrequent intervals or on dep1 Preliminary. layed basis: U. S.—Exchange Stabilization Fund Data reported monthly incomplete. For additional data see section at end of table. 1 (Special A/c No. 1); U. K.—Exchange EqualizaFigure for May 1939 officially reported and carried forward. 3 Figure for Mar. 1937 officially reported as of 20th of month and carried forward through tion Account; France—Exchange Stabilization Nov. 1937. Figures for Dec. 1937 through Mar. 1938 officially reported and carried forward Fund and Rentes Fund; Belgium—Treasury. Gold in Swiss and Dutch Funds and in some through Nov. 1938. Figure for Dec. 1938 officially reported and carried forward. 4 central reserves not reported. Figure for Aug. 1, 1936, carried forward through Mar. 1938; Apr. 1938 figure officially re- other 2 Figure for Mar. 1937, first date reported. ported and carried forward. & These 16 countries are: Albania, Algeria, Australia, Austria through Mar. 7, 1938, Belgian 43 Figure for Sept. 1937. Congo, Bolivia, Danzig through Aug. 31, 1939, Ecuador, El Salvador, Estonia, Guatemala, First date reported. 6 Finland, Latvia, Lithuania, Morocco, and Siam. Transferred: from Bank to Account, $1,648, NOTE.—For back figures and description of table see BULLETIN for June 1933, pp. 368-372, 000,000 on Jan. 6, and $1,162,000,000 on Sept. 6, and July 1936, pp. 544-547; also see footnotes to table in BULLETIN for Aug. 1936, p. 667, and Dec. 1939; from Account to Bank, $26,000,000 on Mar. 1, and $94,000,000 on July 12, 1939. 1937, p. 1262. 1135 FEDERAL RESERVE BULLETIN DECEMBER 1939 GOLD PRODUCTION Outside U. S. S. R. [In thousands of dollars] Estimated world production outside U.S.S.R. Year or month Production reported monthlyAfrica Total South Africa Rhodesia North and South America West Africa Belgian United Congo Statesi $1=25-8/10 grains of gold 9/10 fine 215, 242 11, 607 2,360 4,297 221, 526 11,476 4,995 2,699 224,863 11,193 5,524 3,224 238,931 12,000 5,992 3,642 227, 673 13, 335 6,623 3,631 $1=15-5/21 grains of gold 9/10 385,474 22, 578 11,214 6,148 366, 795 24, 264 12,153 6,549 377,090 25, 477 13, 625 7,159 396,768 28,053 16, 295 7,386 410,710 28, 296 20, 784 8,018 425, 649 28, 532 24, 670 8,470 Canada Mexico Colombia i. e., an ounce of fine gold=$20.67 45, 651 39, 862 13, 463 2,823 47, 248 43, 454 13,813 3,281 49, 527 55, 687 12,866 4,016 50, 626 62, 933 12,070 5,132 52,842 60,968 13,169 6,165 fine; i. e., an ounce of fine gold=$S5 89,467 103,224 22, 297 10,438 108,191 104,023 23,135 12,045 126, 325 114,971 23,858 11,515 152, 509 131,181 26, 465 13, 632 168,159 143, 367 29, 591 15,478 178,143 165, 379 32,306 18, 225 1929.. 1930.. 1931.. 1932.. 1933.. 382, 532 401, 088 426,424 458,102 469,257 352, 237 365, 258 386, 293 413,459 411, 208 1933.. 1934.. 1935_. 1936.. 1937.. 1938.. 794,498 823,003 882, 533 971,514 1, 041, 987 1,118,480 696, 218 707, 288 751, 979 833, 088 892, 535 957,175 1938—July August September. October November. December.. 98, 551 98,089 97, 439 96, 938 98, 787 98/845 84, 908 84,140 83, 275 82, 954 84, 802 84, 234 36, 222 36,622 36, 237 36, 449 35, 842 36, 007 2,410 2,415 2,365 2,445 2,381 2,318 2,067 2,053 2,048 2,174 2,204 2,240 716 716 743 725 728 751 16, 781 16, 590 16, 937 16, 320 18, 579 16,068 1939—January February... March April May June July August September.. 94,835 90, 964 97, 627 '94,540 r98, 484 '99, 450 102, 680 P107, 322 P106, 629 80,159 76, 749 82, 656 79, 728 83, 415 83, 541 87,078 P91, 502 P90, 513 36,188 34, 505 37, 558 35, 613 37, 970 37,065 37, 952 38, 494 P37, 444 2,287 2,069 2,202 2,252 2,355 2, 369 2,395 P2, 431 P2, 431 2,230 2,221 2,346 2,349 2,323 2,277 2,395 2,379 P2, 379 753 688 767 729 779 756 739 731 *>731 14,919 13,153 14,364 15, 260 15,167 14, 460 16, 099 16, 796 19,576 14, 689 14,571 14, 291 14, 449 14, 445 15, 231 4,241 2,941 2,062 2,265 2,353 2,700 1,748 1,515 1,812 1,622 1,628 1,499 14,396 1,762 13, 684 3,421 14,498 2,542 14,238 1,733 15,133 1,794 15,287 . 3,216 15,402 3, 627 15, 722 6,519 P15, 050 PS, 529 1,953 1,562 1,752 1,513 1,614 1,551 1,551 1,735 1,803 Far East Chile Austra- British lia India 3,009 8,712 9,553 12,134 14, 563 16,873 7,508 6,785 6,815 6,782 6,919 5,094 8,350 9,251 9,018 9,544 10,290 28, 568 30, 559 31, 240 40,118 46, 982 54, 264 11,715 11, 223 11,468 11,663 11,607 11,247 752 986 4,330 4,771 4,816 4,642 4,783 5,393 951 958 946 956 930 995 4,076 4,016 4,492 4,301 4,649 4,684 4,399 P 4 , 714 P 5 , 694 940 863 938 912 936 910 936 923 683 428 442 788 1, 019 906 930 1,033 655 568 1,198 830 696 968 1,583 Pl,059 *>989 Gold production in U. S. S. R.: No regular Government statistics on gold production in U. S. S. R. are available, but data of percentage changes irregularly given out by officials of the gold mining industry, together with certain direct figures for past years, afford a basis for estimating annual production, in millions of dollars, as follows—at $20.67 per fine ounce: 1929, $15; 1930, $31; 1931, $34; 1932, $40; 1933, $56; at $35 per fine ounce: 1933, $95; 1934, $135; 1935, $158; 1936, $185; 1937, $180; 1938 (preliminary), $184. p Preliminary. r Revised. i Includes production in the Philippines. NOTE.—For monthly figures back to January 1929 and for explanation of table see BULLETINS for March 1939, p. 227, Febiuary 1939, p. 151, June 1938, pp. 539-540, and April 1933, pp. 233-35. For annual figures of world production back to 1873 (including Russia-U.S.S.R.), see Annual Report of Director of Mint for 1936, pp. 108-109, 1937, pp. 104-105 and 1938, pp. 102-103. Figures for Canada beginning January 1939 are subject to official revision. GOLD MOVEMENTS [In thousands of dollars at approximately $35 a fine ounce] United States Year or month 1934 1 1935. 1936. 1937. Total net imports or net exports Net imports from or net exports (—) to: Netherlands Switzerland Canada Mexico 1,131,994 499,870 260, 223 8,902 94,348 3 227,185 1, 739,019 315, 727 934, 243 2 1,116, 584 174,093 573, 671 3, 351 71,006 6,461 1, 585, 503 891, 531 -13,710 90,859 1,973, 569 1, 208,728 81,135 15,488 163,049 60,146 12,402 968 7,511 54, 452 1,363 86, 829 95,171 72, 648 111,480 76, 315 30,270 13, 667 39, 966 38,482 36, 472 16, 944 10,899 11,911 18, 397 10, 557 15,360 47, 219 11,521 41,832 3,840 27, 242 46,185 1 1,136 14, 333 38,148 10, 810 7,171 731 3,183 1,446 2,236 3,457 2,550 2,113 4 4 11 2,107 1,772 2,748 2,721 3,775 2,720 3,294 2 33, 678 29, 256 3,840 -67 10, 842 4,220 6,852 7,665 12,066 17,191 15,196 34, 299 120,837 9,940 2,342 2,496 3,822 1,649 2,050 3,280 4,150 3,956 653 1,794 2,089 2,754 2,719 3,326 2,179 2,594 3,843 3,022 2, 775 3,947 3,188 United Kingdom BelFrance gium 1938—August September.. October November.. December. 165, 973 91,227 4,721 520,896 377, 984 562, 366 443, 403 42,959 17 177, 768 99,145 240, 526 101, 707 37,395 1939—January February.. March April May June July August September. October 156, 345 223, 281 365, 384 605, 797 429, 404 240,430 278, 636 259,921 326,074 69,726 52,050 165, 377 250,042 384,925 302,667 128,196 177,805 163,738 162,450 10,182 3,213 1,979 1, 1,6 1,400 816 37,179 21 84, 603 3 41, 651 2 1 2 86 Sweden 27,098 44, 564 40, 449 55, 081 45, 554 22, 640 1 2,9£0 1Q 8,227 55, 680 2,284 5,644 5,628 1,482 Colom- Philippine Aus- Japan bia Islands tralia 4,234 2,114 2,117 2,107 2,123 2,120 2,102 12,038 1,029 15, 335 3,498 21,513 23, \ 280 25, 427 34, 1,713 246, 464 27,880 39, 1,162 168,740 V "" 2,655 6,585 4,303 4,844 5,295 5,677 5,034 5,474 8,420 British India 76,820 75, 268 77,892 50, 762 16,159 All other countries 32, 316 47,054 39, 743 30,179 ! 68,376 li, 425 3,806 2,982 760 2 4,768 3,822 19,150 1,797 2 22, 207 37,819 5,446 11,410 5,528 10, 931 14,093 10,938 10,931 16,425 12,497 1 5,124 175 4,398 3,685 4,391 4,944 » 7, 073 3,390 3,909 3,072 2,244 6,416 2,760 4,512 9,259 4,065 « 8, 552 2,703 5 18,012 23, 497 35, 095 5,740 1 Differs from official customhouse figures in which imports and exports for January 1934 are valued at approximately $20.67 a fine ounce. 2 Figures for November and December 1938 include imports from Argentina of $14,112,000 and $17,710,000, respectively. «Includes $4,503,000 from Argentina. 4 Includes $5,158,000 from Hong-Kong. 5 Includes $6,363,000 from Italy; $4,087,000 from Hong-Kong. NOTE.—For gross import and export figures and for additional countries see table on p . 1104. 1136 FEDERAL RESERVE BULLETIN DECEMBER 1939 GOLD MOVEMENTS—Continued [In thousands of dollars at approximately $35 a fine ounce] United Kingdom Net imports from or net exports (—) to: Total net im ports or net exports (-) Year or month United States Germanyi France Belgium Netherlands AustraU.S.S.R. lia 348,190 121,017 -13,585 32, 575 142,137 - 4 , 726 -17,476 10, 796 931 756, 215 23, 292 -15,133 -21,215 541,187 46,147 - 2 1 , 993 -16,572 199, 965 38,899 33,173 348, 000 - 4 6 , 463 115, 540 1934 1935 1936 1937 1938 -497,166 716, 269 -435, 502 369, 722 -276, 830 1,169, 931 -834,009 420, 427 -285, 638 -1,050,395 1938—June July Aug Sept Oct Nov Dec 89, 580 24,119 -73,132 -261,143 -210,171 - 9 6 , 508 - 6 6 , 726 -20,811 - 6 , 1 3 7 -10,529 -997 - 9 3 , 660 - 5 , 726 -360, 016 685 -308, 528 69, 604 -105,220 -66 - 9 7 , 371 758 57 56, 764 -12,037 47 23, 212 - 5 , 7 5 0 - 2 5 8 -10,041 6,164 14,358 120, 075 - 7 , 4 9 8 535 4,077 33, 982 6,005 - 2 , 3 2 8 - 5 , 2 4 5 -898 9,990 2,057 28,104 - 3 6 , 514 -148,005 -259, 984 -121,188 -294,077 - 5 1 , 591 -147,332 -318,511 Q - 5 0 , 814 -68 -160,218 -183 -306, 839 -357, 518 - 1 , 4 3 1 -262 -287, 762 -412 -127,293 -330 -182,145 2,691 -223,370 -33 211 -253 11 396 779 88 23, 477 1,039 29 176, 451 19,164 4, 018 2,008 49,004 -38 415 22,968 -1 196 8,856 1 - 7 , 4 9 1 -11,275 1939—Jan... Feb Mar Apr May. June July Aug _ Germany Year or month Total net imports or net exports^ () 41, 790 37, 981 26, 723 24,165 27, 831 South Africa, Rhodesia, West Africa British India Other British countries 335,253 206, 693 404, 295 181, 602 488,814 128,421 464, 837 66, 330 333, 750 55, 744 40, 623 31, 516 31,192 16, 831 6,530 2,695 7,358 3,725 9,929 6,418 6,581 10, 356 3,035 3,023 - 4 , 750 4,204 - 2 0 , 792 4,260 618 1,815 531 5,672 5,613 16, 866 681 736 5,631 143 5,671 3,451 5,559 12, 656 45, 394 52, 636 38, 423 49,120 304 1,374 151 - 1 , 1 0 1 1,417 -1,148 4,805 4 - 4 7 , 875 2,975 1 -145, 856 2,388 911 3,078 697 4,606 s-114,284 5,649 55 Switzerland Total net imports or net exports () - 7 , 673 - 5 , 407 -11,429 - 1 6 , 521 -11,151 -10,498 - 2 2 , 763 - 2 1 , 980 - 4 , 671 2,831 1,017 1,511 - 3 , 790 -1 -32 -437 - 3 , 793 -2 -1,138 - 4 , 966 United Kingdom France Belgium 421 -920 -312 -1,955 1,353 1,603 1,347 704 3,762 399 1,847 - 3 , 845 3,618 73, 394 -425 32, 921 1,504 153 - 3 , 3 1 8 - 5 7 5 -14,393 —4, 618 - 8 , 980 British India Net imports from or net exports (—) to: United States All other countries 62,397 - 9 , 1 2 3 2 88, 228 32, 754 -50,661 14,126 53, 465 28,067 -10,129 37, 708 3,998 22,079 - 8 1 -16,596 3-55,032 20, 761 - 8 9 , 371 -78,029 4,922 2,024 2,490 2,102 2,839 705 155 528 5,665 8 Switzerland Sweden Italy Netherlands Germany 1 Increase in India: All other countries Total net Gold In In imports produc- Ingold or net tion in dian earmarkexports India re- ed for () serves foreign In private holdings7 account 1934.. 1935.. 1936_. 1937.. 1938.. - 9 0 , 920 -46,065 -12,784r - 4 5 , 955 64 -54,858 42, 969 -230, 788 - 1 , 8 6 8 122, 278 - 9 , 1 2 7 -1,714 - 3 , 7 1 8 -56,946 -51,1"" 11, 940 - 3 5 , 224 - 1 , 2 4 5 - 1 , 1 2 8 76, 620 1938—Aug... Sept.. Oct.__ Nov... Dec.__ -6, 864 -36, 626 -16,134 -10,129 - 3 , 765 1939—Jan.. _ Feb._. Mar.__ Apr.__ May.. June.. July.. Aug... Sept. _ Oct.?.. 33 - 3 , 786 -21 -763 -11,940 - 2 , 1 1 2 1,547 9,999 - 3 7 , 332 -10,786 9,967 -162,645 -54, 266 -104, 650 8,059 - 2 , 329 - 5 , 4 1 9 -5, 807 93 -284 -10,696 - 8 , 589 7,765 - 2 , r • 1,033 2 4,334 5,275 - 2 , 730 - 1 , 5 0 6 -1,030 - 2 , 744 -915 -1,338 9,024 1,454 913 - 5 , 690 -2 -7 -1,140 228 10, 464 15,940 907 13 -1,854 -29,235 18, 397 19,431 -181,725 -13,940 25, 542 39, 305 14,531 51, 299 - 4 5 , 061 27, 739 -657 - 7 4 , 375 - 1 , 0 6 7 11,314 -43 1,543 - 9 , 607 s 2, 812 - 2 , 990 9 26, 368 -16,461 10, 609 -32, 745 - 4 , 989 -230, 720 -161,872 -121,066 - 6 1 , 723 - 5 4 , 661 11, 223 11,468 11, 663 11, 607 11, 247 3,824 - 6 , 267 342 924 1,884 -10,251 2,551 -56 3 994 -265 31 - 2 , 884 -438 -209 - 7 , 082 -957 - 7 , 622 - 2 , 283 211 958 946 956 930 995 -1,274 -125 -7 - 3 , 288 -15 -97 -5,113 -14,830 -860 - 2 , 4 3 1 - 2 , 573 - 3 , 394 - 4 , 202 -1,138 -239 -2,049 -76 -3,116 -10,264 -244 -171 - 5 , 274 -204 -887 -11 -243 2,744 1,830 940 863 938 912 937 910 2,580 342 4,600 6,553 25,125 -8,382 418 -616 33 -139 -1,283 117 -158 -117 -166 549 24 -1,990 - 4 , 805 1 - 2 , 294 -149 -213 556 - 1 , 5 8 1 -1,509 -576 - 8 , 327 - 8 6 4 10, 819 - 3 , 8 7 6 - 7 3 19, 585 - 7 1 8 o 725 10,800 355 —91 2,815 1,234 -1 -25 89 - 4 , 574 - 1 , 3 7 2 -1,153 -1,929 -457 -37 o 173 -6 -219, 670 -150,398 -109,403 -50,075 12,078 -55,494 1,909 5,690 4,479 -3 -6,124 -11 - 8 , 575 -7,043 - 3 , 273 11, 423 -10,608 7,749 -10,174 4,812 -8,984 5,197 - 7 , 679 1,839 -5,104 5,749 - 6 , 888 942 -10,270 2,512 -6,863 c p Preliminary. Corrected. Beginning April 1938 figures refer to Greater Germany. Includes $17,465,000 exported to Rumania and unspecified net imports of $95,937,000. 3 Includes $67,655,000 exported to Central and South America. 4 Figures for April and May include exports to Canada of $45,972,000 and $144,910,000 respectively. 5 Includes net exports to Canada of $115,515,000. • Through March 1935 gold held by government; subsequently, gold held by Reserve Bank of India to which government gold was transferred. 7 Figures derived from preceding columns; gold movement plus production minus increases in Indian reserves and gold earmarked for foreign account in India. 8 Includes net import of $19,926,000 from Czecho-Slovakia and net export of $15,374,000 to Austria. 9 Includes net import of $26,555,000 from Czecho-Slovakia. NOTE.—Switzerland.—In some cases annual aggregates of official monthly figures differ somewhat from revised official totals published for year as a whole. 1 2 DECEMBER 1137 FEDERAL RESERVE BULLETIN 1939 INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES NET CAPITAL MOVEMENT TO UNITED STATES SINCE JANUARY 2, 1935 [In millions of dollars. Minus sign indicates net movement from United States] TABLE 1.—TOTAL CAPITAL MOVEMENT Increase in foreign banking funds in U. S. From Jan. 2, 1935, through— Total Total 1935—Dec. 31 1936—Dec. 30 1937—Dec. 29 1938—Dec. 28 , 1939—Mar. 29 June 28 Aug. Aug. Aug. Aug. Aug. 2 _ 9 16 23 30 __ _ __ Central bank funds in N. Y. Other Decrease in U. S. banking funds abroad Foreign securities: Return of U. S. funds Domestic securities: Inflow of foreign funds Inflow in brokerage balances 1,412.5 2,608 4 3, 410. 3 3 779 2 603.3 930.5 1,168. 5 1,432 7 9.8 81.1 243.9 216 3 593.5 849.4 924.6 1,216.5 361.4 431.5 449.1 478.1 125.2 316.2 583.2 610.0 316.7 917.4 1,162. 0 1, 210. 9 6.0 12.9 47.5 47.6 4,134. 7 4, 595. 6 1, 693. 0 2, 048. 3 256.8 361.8 1,436. 2 1, 686. 5 550.5 609.5 646.7 664.5 1,180. 6 1,199. 3 63.9 74.0 4, 637. 2 4, 664.8 4,711.8 4,830 0 4, 865. 3 2, 093. 9 2,139. 1 2,182. 2 2,287 3 2, 334. 2 327.1 323.2 305.5 352 5 371.6 1, 766. 8 1,815.8 1, 876. 7 1,934 9 1, 962. 6 598.8 612.0 624.8 635 1 622.6 680.2 652.8 654.5 656 9 657.8 1,182. 2 1,176. 5 1,164.9 1,165.1 1,165. 7 82.1 84.5 85.4 85.5 85.0 TABLE 2.—TOTAL CAPITAL MOVEMENT, BY COUNTRIES United Kingdom France 31 30 29 28 1,412. 5 2, 608. 4 3,410. 3 3, 779. 2 554.9 829.3 993.7 1,186.1 210.2 299.5 281.7 339.5 114.5 229.7 311.9 324. 6 130.4 335.5 607.5 554.0 36.6 83.1 123.9 140.7 1939—Mar. 29 June 28 4,134.7 4, 595. 6 1, 203.1 1, 360. 2 366.8 439.7 383.6 401.0 587.6 599.2 4, 637. 2 4, 664. 8 4,711.8 4,830.0 . 4,865. 3 1, 337. 7 1, 326. 5 1,341.6 1, 386. 4 1, 326. 3 441.9 444.3 451.0 449.9 473.4 405.7 409.7 407.7 408.8 412.1 606.8 607.5 600.6 618.7 647.2 1935—Dec. 1936—Dec. 1937—Dec. 1938—Dec. Aug. Aug. Aug. Aug. Aug. 2 9 16 23 30___ Netherlands Switzerland Total From Jan. 2, 1935, through— Germany Far East Other Europe Total Europe 24.0 45.6 22.1 33.0 130.0 228.5 312.2 463.8 1, 200. 6 2,051. 3 2, 653.0 3, 041. 7 150.5 106.3 157.2 0) 70.9 201.2 410.6 389.5 128.3 184.0 224.6 156.8 12.7 21.4 15.9 34.1 150.2 149.5 24.7 29.5 536.8 604.2 3, 252. 9 3, 583. 3 185.1 230.5 443. 5 500.2 206.4 223.8 46.8 57.9 151.5 152.4 151. 7 149.8 148.8 31.2 31.4 32.2 30.9 26.1 617.3 619.8 635.4 664.3 665.1 3, 592. 0 3, 591. 6 3, 620. 3 3, 708. 7 3, 699.1 259.1 267.1 270.7 275 8 29L8 516.1 521.7 523.2 530.2 536.1 207.2 220.3 236.1 248.8 259. 4 62.7 64.0 61.4 66.4 78.9 Italy Latin Canada America All other TABLE 3.—FOREIGN BANKING FUNDS I N UNITED STATES, BY COUNTRIES From Jan. 2, 1935, through— 1935—Dec. 1936—Dec. 1937—Dec. 1938—Dec. 31___ 30 29 28 1939—Mar. 29 June 28 Aug. Aug. Aug. Aug. Aug. 2 9 16 23 30 United Kingdom France Netherlands Switzerland Germany 603.3 930.5 1,168. 5 1, 432. 7 128.6 163.5 189.3 366.7 129.6 144.2 111.8 158.8 55.7 65.9 76. 3 84.4 72.4 109.8 288.4 203.7 -.8 2.7 9.6 -9.8 7.3 23.0 6.9 3.8 60.7 79.7 109.4 203.0 453.5 588.9 791.7 1, 010. 6 46.0 86.8 76.3 135.1 33.5 149.3 166. 3 134.0 58.8 90.4 126.2 132.7 11.5 15.2 8.0 20.4 1, 693. 0 2, 048. 3 401.8 535.2 187.4 252.3 129.9 132.0 233.4 227.1 -10.9 -14.5 -3.9 -6.6 267.8 320.0 1, 205. 5 1, 445. 5 136.5 191.5 179.8 242.0 139.9 131.5 31.3 37.8 2,093. 9 2,139. 1 2,182. 2 2, 287. 3 2, 334. 2 517.0 511.7 529. 5 570.1 522.3 252.1 253.9 262.6 263.6 283.7 138.9 144.6 143.0 140.9 144.8 234.9 234.6 226.2 243.0 270.0 -15.3 -15.5 -15.7 -17.5 -18.5 -5.5 -5.2 -4.1 -5.2 -7.4 332. 8 335. 6 350. 1 379 2 384*. 1 1, 454. 9 1, 459. 7 1,491.6 1, 574.1 1, 579. 0 205.4 232.4 235.6 240.2 256.1 258.6 261.4 260.7 265.5 268.9 133.8 142.7 154. 5 162.9 172.8 41.2 42.9 39.8 44.7 57.5 Total TABLE 4.—UNITED From Jan. 2, 1935, through— Total Italy Other Europe Total Latin Europe Canada America Far East All other STATES BANKING FUNDS ABROAD, BY COUNTRIES United Kingdom France Netherlands Switzerland Germany Italy Other Europe 8.8 Total Latin Europe Canada America Far East All other 1935—Dec. 31 1936—Dec. 30 1937—Dec. 29 1938—Dec. 28 361.4 431.5 449.1 478.1 208.8 178.0 207.4 204.5 48.1 62.0 65.3 65.5 -.4 -3.3 -4.4 -6.9 1.6 2.7 2.6 2.6 29.7 66.0 105.1 140.3 13.7 16.3 6.5 13.9 22.0 26.9 33.0 310.2 343.7 409.3 453.0 -4.6 36.9 -21.7 30.6 20.1 24.9 51.6 66.8 37.3 30.4 18.7 -65.0 -1.6 -4.4 -8.7 -7.2 1939—Mar. 29 June 28 550.5 609.5 209.2 236.7 64.9 68.1 -1.5 -1.0 4.5 3.6 149.8 153.8 10.8 17.7 30.9 39.9 468.6 518.8 49.9 42.2 66.5 55.7 -28.1 -2.9 -6.4 -4.3 598.8 612.0 624.8 635.1 622.6 239.3 237.8 234.2 236.5 225.2 70.3 71.1 69.8 67.9 70.0 -4.4 -6.0 4.7 8.4 8.4 4.9 5.0 5.4 5.7 5.6 157.5 158.3 158.2 158.1 158.2 17.9 17.7 17.4 17.2 14.6 40.6 40.6 40.8 40.8 35.1 526.1 524.5 530.6 534.6 517.2 39.6 48.3 48.8 49.5 52.3 54.1 56.2 58.7 59.9 61.9 -18.7 -14.3 -10.8 -6.5 -5.7 -2.3 -2.7 -2.4 -2.5 -3.0 Aug. Aug. Aug. Aug. Aug. 2 9 16 23 30 i Inflow less than $50,000. NOTE.—Statistics reported by banks, bankers, brokers, and dealers. For backfiguresand description of the statistics, see BULLETIN for April 1939, pp. 284-296, April 1938, pp. 267-277, and May 1937, pp. 394-431. 1138 FEDERAL RESERVE BULLETIN DECEMBER 1939 INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES—Continued NET CAPITAL MOVEMENT TO UNITED STATES SINCE JANUARY 2, 1935—Continued [In millions of dollars. Minus sign indicates net movement from United States] T A B L E 5 . — F O R E I G N SECURITIES, BY COUNTRIES Net Purchases by Foreigners From Jan. 2,1935, through— Total United Kingdom France Netherlands Switzerland Germany Italy Other Europe Total Europe Latin Canada America Far East All other 1935—Dec. 31 1936—Dec. 30 1937—Dec. 29 1938—Dec. 28_ 125.2 316.2 583.2 610.0 67.8 116.1 136.8 129.1 6.8 18.2 22.8 26.2 7.4 10.4 21.2 27.3 -1.2 13.7 30.4 37.1 13.3 22.5 26.6 33.1 2.9 9.4 13.5 20.5 46.1 87.9 115.2 165.9 143.1 278.3 366.4 439.1 -39.7 1.7 10.5 -38.9 12.7 15.7 175.0 166.3 7.9 17.0 24.5 33.8 1.1 3.5 6.8 9.7 1939—Mar. 29 June 28 646.7 664.5 127.6 128.2 28.7 29.4 38.4 41.7 34.9 35.8 23.1 23.8 174.9 180.4 453.8 467.4 -25.8 -26.5 172.6 176.0 36.2 37.1 9.9 10.4 Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30 680.2 652.8 654.5 656.9 657.8 126.7 126.4 126.6 127.2 127.4 26.3 28.2 28.3 28.4 28.3 28.3 28.3 29.7 29.7 29.8 29.8 29.7 42.3 42.3 42.5 43.0 43.2 36.0 36.1 36.2 36.3 36.4 24.3 24.3 24.3 24.3 24.4 180.6 180.7 181.2 181.5 181.8 468.0 468.0 468.8 470.3 471.2 -13.5 -41.6 -41.3 -41.2 -41.5 177.5 177.8 178.0 178.6 178.8 38.2 38.5 38.7 38.8 38.8 10.0 10.1 10.3 10.4 10.5 T A B L E 6.—DOMESTIC SECURITIES, BY COUNTRIES Net Purchases by Foreigners United Kingdom France Netherlands Switzerland Germany 316.7 917.4 1,162.0 1, 210. 9 149.8 367.7 448.7 472.6 23.4 64.7 70.3 76.5 50.5 157.6 213.8 212.9 55.1 200.2 275.3 301.7 -5.4 -7.5 -17.4 -22.7 1,180. 6 1,199. 3 448.3 442.0 72.3 74.4 217.7 231.0 301.7 315.0 1,182. 2 1,176. 5 1,164. 9 1,165.1 1,165. 7 434.7 431.5 431.7 432.5 433.5 73.5 72.4 71.7 72.3 72.2 229.5 231.1 220.7 220.0 220.6 311.3 311.0 311.0 312.2 313.4 From Jan. 2, 1935, through— Total 1935—Dec. 31 1936—Dec. 30 1937—Dec. 29 1938—Dec. 28 1939—Mar. 29 June 28 Aug. Aug. Aug. Aug. Aug. 2 9 16 23 30 Latin Canada America Other Europe Total Europe -.1 -3.3 -4.9 -5.4 12.9 38.5 55.7 56.6 286.2 818.0 1,041.6 1,092. 3 2.8 32.6 37.6 27.8 3.7 15.5 18.2 23.4 21.4 44.1 54.7 56.4 2.6 7.1 9.8 11.0 -23.4 -25.2 -5.5 -5.5 56.5 56.9 1,067. 6 1, 088. 4 18.8 13.9 24.6 25.7 57.9 57.6 11.7 13.7 -26.5 -26.6 -26.8 26.9 -27.1 -5.6 -5.6 -5.6 -5.6 -5.7 56.0 55.6 55.4 55.4 56.7 1, 072. 9 1,069. 4 1,058. 2 1,059. 8 1,063. 6 18.9 18.1 17.4 16.9 13.0 25.2 24.6 24.6 24.6 24.7 51.9 51.1 51.3 50.5 50.6 13.3 13.2 13.3 13.3 13.7 Italy Far East All other TABLE 7.—BROKERAGE BALANCES1, BY COUNTRIES From Jan. 2, 1935, through— Total United Kingdom France Netherlands Switzerland Germany Italy Other Europe Total Europe Latin Canada America Far East All other 1935—Dec. 31 1936—Dec. 30 1937—Dec. 29 1938—Dec. 28 6.0 12.9 47.5 47.6 (2) 4.0 11.5 13.2 2.4 10.4 11.5 12.6 1.3 -.9 5.0 6.8 2.5 9.1 10.8 8.8 -.2 .1 .3 .1 .2 1.4 .4 5.0 5.3 7.6 22.6 44.0 46.7 -4.5 -7.6 3.5 2.6 1.0 -4.2 -.5 -.9 2.9 2.1 .5 -1.0 1939—Mar. 29 June 28 63.9 74.0 16.3 18.1 16.0 16.8 8.8 9.6 9.6 11.9 -.2 -.3 .2 .1 6.6 7.0 57.4 63.2 5.6 9.3 .1 .8 .6 .4 .3 .3 82.1 84.5 85.4 85.5 85.0 19.9 19.2 19.6 20.1 17.8 17.7 18.5 18.6 17.7 19.1 12.0 10.3 9.6 9.8 8.6 13.4 14.5 15.5 14.7 15.0 -.2 (2) 2 -.2 _ 2 .2 .2 .2 .2 2 7.3 7.3 7.9 7.5 7.4 . 70.2 70.1 71.2 69.8 68.0 8.8 10.0 10.2 10.4 11.9 .7 1.7 1.3 1.7 1.9 1.9 2.3 2.3 3.2 3.0 .5 .4 .4 .4 .3 Aug. Aug. Aug. Aug. Aug. 2 9 16 23 30 1 For explanation see BULLETIN for May 1937, pp. 395-396. 2 Inflow less than $50,000. s Outflow less than $50,000. (3) (3) -.9 .2 1139 FEDERAL RESERVE BULLETIN DECEMBER 1939 INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES—Continued OUTSTANDING SHORT-TERM ACCOUNTS, BY COUNTRIES [Outstanding amounts in millions of dollars] TABLE 8.—SHORT-TERM LIABILITIES TO FOREIGNERS, BY COUNTRIES Date Total United Kingdom France Netherlands Switzerland 105.2 222.2 66.0 78.0 11.5 Germany Italy Other Europe Total Europe Latin Canada America Far East All other Reported by Banks in New York City 2,162.8 1,911.7 961.2 469.6 155.7 196.0 241.8 216.8 148.3 98.2 86.1 91.9 188.2 130.8 103.3 121.7 96.7 106.6 49.0 38.2 69.0 43.5 42.7 60.3 31.0 37.5 21.6 12.6 10.9 11.9 40.6 46.8 107.5 126.3 156.0 249.9 227.1 232.9 686.3 814.3 1,017.1 1, 237.8 103.3 99.3 145.3 186.1 175.6 235.2 117.4 122.8 156.3 263.9 280.9 254.9 125.1 130.1 188.9 200.2 236.0 243.7 12.0 12.0 23.4 27.1 20.0 32.4 14.8 12.2 314.7 366.9 1, 432. 7 1, 672. 7 236.6 291.7 300.7 363.0 250.9 242.5 «= 43. 3 49.7 13.3 13.6 14.6 13.6 11.4 379.7 382.5 397.0 426.1 431.0 1, 682.1 1, 686. 9 1, 718. 8 1,801.3 1, 806. 2 305.5 332.5 335. 8 340.4 356.2 379.5 382.3 381.6 386.4 389.8 244.8 253.7 265.5 273.8 283.7 53.2 54.9 51.8 56.7 69.4 1929—Dec. 31__. 1930—Dec. 31___ 1931—Dec. 30. __ 1932—Dec. 28___ 1933—Dec. 27. __ 1934—Nov. 28i. 2, 672.7 2, 335.0 1, 303. 5 745.6 392.0 466.7 301.5 214.5 104.9 169.7 48.9 59.1 923.7 799.4 549.2 71.1 27.0 32.7 99.1 122.2 44.6 11.9 1934—Dec. 5 K. 1935-Jan. 2.... Dec. 31_. 1936—Dec. 30__ 1937—Dec. 29__ 1938—Dec. 2 8 - 79.6 76.9 205.5 235.7 261.5 438.8 36.1 33.9 163.5 176.3 143.9 190.9 13.5 12.9 68.6 78.8 89.1 98.4 12.1 13.7 86.1 123.5 302.1 217.4 28.4 29.9 29.0 32.0 39.0 19.9 16.8 18.8 26.1 41.7 25.7 22.6 1939—Mar. 29.. June 28. _. 584.8 597.0 1,200.2 1,491.6 1, 729. 6 2,003.9 2, 264. 2 2, 619. 5 473.9 607.4 219.5 284.4 143.9 146.0 247.1 240.8 18.7 15.1 Aug. 2__. Aug. 9.... Aug. 16__ Aug. 23... Aug. 30... 2, 665.1 2, 710. 3 2, 753. 4 2, 858. 6 2, 905. 4 589.1 583.8 601.7 642.3 594.5 284.2 286.0 294.7 295.7 315.9 152.9 158.5 157.0 154.8 158.7 248.5 248.3 239.8 256.7 283.6 14.3 14.2 13.9 12.1 11.1 8.0 12.7 9.7 204.5 161.0 41.1 32.9 17.5 25.8 157.4 111.2 33.2 39.8 11.7 14.3 371.3 281.3 122.2 66.2 31.1 41.7 Reported by Banks in United States TABLE 9—SHORT-TERM FOREIGN ASSETS, BY COUNTRIES Date Total United Kingdom France Netherlands Switzerland Germany Italy Other Europe Total Europe Latin Canada America Far East All other Reported by Banks in New York City 1931—Dec. 30 1932—Dec. 28 1933—Dec. 27 1934—Nov. 281. __ 1,103.3 I 937.9 898.8 827.1 I 166.2 87.3 192.5 201.3 29.5 62.9 66.9 94.1 20.9 13.0 18.4 15.9 12.6 6.2 12.3 8.5 467.2 434.9 260.9 178.8 18.7 11.8 16.7 10.7 854.3 713.1 651.0 569.5 58.1 42.2 32.3 84.4 136.5 155.2 159.7 124.4 41.8 24.0 49.7 46.2 2.6 3.5 6.2 2. 6 81.3 80.0 71.2 57.8 52.9 46.7 749.5 743.2 433.0 392.1 326.5 282.8 267.1 217.0 170.7 174.6 154.5 141.1 114.4 99.2 99.5 110.3 111.8 109.8 107.3 106.1 104.1 118.1 117.4 80.1 67.2 78.9 162.6 125.7 100.5 8.3 8.5 10.1 12.9 17.2 15.7 48.8 39.9 39.2 39.2 38.9 39.0 44.7 91.2 96.3 100.9 59.4 118.0 65.7 46.3 54.0 56.7 48.0 47.5 46.7 44.0 116.3 111.9 108.4 104.1 103.3 10.8 11.1 10.9 11.0 11.5 149.2 97.0 83.2 60.2 Reported by Banks in United States 1934—Dec. 5 2__ 1935—Jan. 2.... Dec. 31_. 1936—Dec. 30_. 1937—Dec. 29__ 1938—Dec. 28__ 1939—Mar. 29.. June 28— Aug. 2 . . . Aug. 9_... Aug. 16... Aug. 23... Aug. 30... c 1 2 1,137. 8 1,139. 9 778.6 672.6 655.0 628.0 553.6 494.6 505.3 492.1 479.3 469.0 481.4 266.4 296.9 88.1 114.1 84.8 87.7 83.0 55.4 52.8 54.4 58.0 55.7 66.9 Corrected. Last report date on old basis. First report date on new basis. 108.2 80.5 32.5 16.8 13 5 13.3 13.8 10.7 8.5 7.6 9.0 10.8 8.7 19.2 18.6 19.0 21.9 23.0 25.5 8.3 8.2 6.6 5.4 5.5 5.4 20.1 19.7 3.6 4.5 23.1 24.7 13.9 10.2 10.3 3.1 3.1 2.7 2.3 2.5 239.6 231.7 202.0 165.1 126.1 90.9 81.4 77.4 73.7 72.8 73.0 73.1 73.0 26.5 27.2 13.5 10.9 20.8 13.3 16.4 9.5 9.3 9.5 9.8 10.0 12.6 209.7 211.3 205. 2 201.1 218.6 14.9 12. 8 1140 FEDERAL RESERVE BULLETIN DECEMBER 1939 CENTRAL BANKS Bank of England (Figures in millions of pounds sterling) 1929—Dec. 1930—Dec. 1931—Dec. 1932—Dec. 1933—Dec. 1934—Dec. 1935—Dec. 1936—Dec. 1937—Dec. Assets of issue dept. Gold Other assets i Assets of banking department Discounts and advances Securities 26.3 38.8 31.6 23.6 58.7 47.1 35.5 46.3 41.1 22.3 49.0 27.3 18.5 16.8 7.6 8.5 17.5 9.2 84.9 104.7 133.0 120.1 101.4 98.2 94.7 155.6 135.5 379.6 368.8 364.2 371.2 392.0 405.2 424.5 467.4 505.3 71.0 132.4 126.4 102.4 101.2 89.1 72.1 150.6 120.6 22.2 Cash reserves Coin Liabilities of banking department Note circulation Notes Bankers' 25. 31. 30. 28. 27. 26. 25. 30. 29. 145.8 147.6 120.7 119.8 190.7 192.3 200.1 313.7 326.4 260.0 260.0 275.0 275.0 260.0 260.0 260.0 200.0 220.0 1938—Nov. 30. Dec. 28. 326.4 326.4 200.0 230.0 1.2 45.6 51.7 17.6 28.5 110.8 90.7 480.8 504.7 1939—Jan. 25___ Feb. 22.. Mar. 29.. April 26_. May 31.. June 28.. July 26. _. Aug. 3O._ Sept. 27.. Oct. 25... 2 126. 4 126.4 3 226. 2 226.2 226.2 226.4 4 246.4 263.0 5.1 .2 400.0 400.0 300.0 300.0 300.0 300.0 300.0 300.0 580.0 580.0 .7 1.0 1.1 62.6 53.7 44.2 37.1 26.4 27.4 35.5 33.5 38.3 53.0 18.8 17.5 4.8 6.2 8.0 6.8 8.0 6.4 2.5 103.9 100.6 124.8 129.5 140.7 136.7 128.0 137. 8 144.2 127.7 463.8 472.7 482.0 489.1 499.8 499.0 510.9 529.5 541. 8 527.1 1.0 .5 Deposits Public Domestic bills (Figures in millions of francs) Gold£ Foreign Open exchange market 7 Other liabilities 12.1 12.1 11.4 35.8 36.2 40.3 33.8 36.5 36.4 37.1 39.2 36.6 17.9 18.0 18.0 18.0 18.0 18.0 18.0 18.0 18.0 97.1 101.0 23.1 15.9 37.2 36.8 17.8 18.0 118.2 103.1 98.5 91.4 82.4 101.4 91.4 90.1 107.1 116.8 12.9 16.3 21.8 27.0 38.3 15.4 26.0 31.1 19.8 12.6 36.7 35.1 36.3 37.6 37.1 37.0 36.7 39.0 40.5 39.2 18.1 18.2 18.2 17.7 17.8 17.9 18.1 18.2 18.3 17.7 8.8 6.6 7.7 8.9 9.9 Liabilities Assets Bank of France Other Deposits Loans o n Advances Shortto term Other Govern- 9 Govern- securiment sement ties curities Other assets 5,603 6,609 8,545 9,196 8,251 8,288 7,879 8,344 7,277 Special 8 Other 17,698 31,909 573 715 675 2,521 2,901 2,730 2,515 2,921 3,211 3,253 3,583 3,781 1929—Dec. 2 7 1930—Dec. 26. _ 1931—Dec. 30__ 1932—Dec. 30__ 1933—Dec. 29__ 1934—Dec. 28_. 1935—Dec. 27__ 1936—Dec. 30__ 1937—Dec. 30. - 41, 668 25,942 53, 578 26,179 68,863 21,111 4,484 83,017 1,158 77,098 82,124 963 1,328 60, 359 1,460 58, 933 911 5,612 5,304 7,157 6,802 6,122 5,837 5,800 5,640 5,580 1,379 652 8,624 8,429 7~" 3,438 4,739 3,971 9,712 8,465 10,066 1938—Nov. 24.. Dec. 29__ 87,264 87, 265 821 7,032 7,422 1,611 1,797 11,021 7,880 20, 627 20, 627 443 3,739 3,612 1939—Jan. 26__. Feb. 23._ Mar. 30.. April 27. May 25.. June 29._ July 27_ _ Aug. 3 1 . . Sept. 28_. Oct. 26__ 87, 266 87, 266 87, 266 '092,266 92, 266 92, 266 92, 266 «97, 266 97, 266 97, 266 761 759 758 756 754 722 722 218 212 85 8,004 7,801 8,631 8,609 8,164 8,074 8,316 9,396 9,734 10, 038 1,996 2,014 2,054 2,165 2,276 2,279 2,275 1,708 1,958 2,007 6,193 5,462 5,733 6,012 4,774 5,009 5,000 15,009 14,830 20,627 20, 627 20, 627 20,577 20, 577 20, 577 20, 577 20, 577 22, 777 25,473 136 73 172 127 78 374 472 2,412 930 336 3,389 3,317 3,332 3,362 3,401 3,471 3,461 3,805 3,661 3,576 Other liabilities Note circulaGoverntion ment Other 68, 571 76,436 85, 725 85,028 82, 613 83,412 81,150 89, 342 93,837 11,737 12,624 5,898 2,311 2,322 3,718 2,862 2,089 3,461 7,850 11, 698 22,183 20,072 13,414 15, 359 8,716 13, 655 19, 326 1,812 2,241 1,989 2,041 1,940 1,907 2,113 2,557 3,160 14,185 106, 798 14,442 110, 935 14.099 109,378 14,308 111, 162 14, 558 119, 748 14,452 124, 666 14, 264 121,391 14, 753 122, 611 14,458 123,239 16,016 142, 359 16,482 144, 562 17.100 144, 379 6,169 5,061 31, 955 25, 595 3,004 2,718 5,445 5,079 3,955 3,755 4,573 5,188 5,468 3,304 2,342 2,004 24, 935 22, 556 16, 702 17, 255 17, 570 16, 909 16,058 18,038 18,022 14, 790 2,713 2,830 2,726 2,649 3,020 2,816 2,781 2,708 2,926 3,006 i Securities and silver coin held as cover for fiduciary issue. Currency and Bank Notes Act, 1939 (see BULLETIN for April 1939, p. 271), fixed fiduciary issue at £300,000,000 and provided for valuation of gold at current prices instead of legal parity, effective March 1, 1939. Since Sept. 6, 1939, however, an increase in fiduciary issue (and securities held as cover) to £580,000,000 has been authorized b y British Treasury under Section 8 of Currency and Bank Notes Act, 1928 (see BULLETIN for August 1928, pp. 567-569). For status of fiduciary issue before Mar. 1, 1939, see BULLETIN for April 1939, p. 339. i On Jan. 6, 1939, £200,000,000 of gold transferred to British Exchange Equalization Account. 8 Effective Mar. 1, 1939, gold valued at current prices instead of legal parity and about £5,500,000 transferred from Exchange Account to Bank. See note 1. * On July 12, 1939, £20,000,000 of gold transferred from Exchange Account to Bank of England. 66 On Sept. 6, 1939, £279,000,000 transferred from Bank of England to Exchange Account. By decree of Nov. 12, 1938 (see BULLETIN for Jan. 1939, p. 29), gold revalued on basis of 27.50 milligrams gold 0.900 fine per franc; on Nov. 14 increment of nearly 31,500,000,000 francs was applied to partial reimbursement of advances to Government, which stood at authorized maximum of 52,000,000,000 francs on that date. Permanent debt of Government to Bank, included above in Other Assets, was simultaneously increased by 6,800,000,000 francs. For details of revaluations in October 1936 and July 1937 see BULLETIN for Dec. 1938, p . 1091. 7 Negotiable bills of Caisse Autonome and bills bought under authority of decree of June 17, 1938 (see BULLETIN for Aug. 1938, p . 650). s Bills and warrants endorsed by National Wheat Board (law of Aug. 15,1936—see BULLETIN for Oct. 1936, pp. 785-786), and bills rediscounted for account of Banques Populates (law of Aug. 19, 1936—see BULLETIN for Oct. 1936, p. 788). • Includes advances granted under authority of Conventions between Bank of France and Treasury of June 18, 1936, June 30, 1937, March 22, 1938, and April 14, 1938, as modified by Convention of Nov. 12, 1938; and under authority of Convention of Sept. 29, 1938, approved b y decree of Sept. 1, 1939 (see BULLETINS for July 1936, p . 536; Aug. 1937, p . 720; June 1938, p . 452; Aug. 1938, p . 650; Jan. 1939, p . 30, and Nov. 1939, p . 976). "11 On April 20, and again on Aug. 3, 1939, 5,000,000,000 francs of gold transferred from Stabilization Fund to Bank of France. Figures not yet available. NOTE.—For further explanation of table see BULLETIN for February 1931, pp. 81-83, and July 1935, p. 463 1141 FEDERAL RESERVE BULLETIN D E C E M B E R 1939 CENTRAL BANKS—Continued Liabilities Assets Reichsbank (Figures in millions of reichmarks) 1929—Dec. 31 1930—Dec. 31 1931—Dec. 31 1932—Dec. 31 1933—Dec 30 1934—Dec. 31 1935—Dec. 31 1936—Dec. 31. 1937—Dec. 31 Reserves of gold and Bills (and checks), foreign exchange including Security loans Treasury Total Gold* bills reserves 2,687 2 685 1 156 920 396 84 88 72 . 2, 283 2 216 984 806 386 79 82 66 76 71 1938—Nov. 30 Dec. 31 77 71 76 71 1939—Jan. 31 Feb. 28 Mar. 31 Apr. 29 M a y 31 June 30. _ July 31 Aug. 31 Sept. 30 Oct. 31 76 76 77 77 77 77 77 77 77 77 71 71 71 71 71 ___ Securities Eligible as note cover Other Note circulation Deposits Other liabilities 1,032 1,012 1,059 923 953 861 5,044 4,778 4,776 3,560 3,645 3,901 4,285 4,980 5,493 298 1,494 1,621 7,744 8,223 1,141 1,527 1,093 1,091 298 288 292 476 285 274 289 296 393 366 1,848 1,710 1,489 1,928 2,182 1,658 1,652 1,964 1,963 2,375 7,816 7,939 8,311 8,519 8,525 8,731 8,989 10,907 10, 995 10, 820 1,119 1,105 1,249 1,122 1,292 1,281 1,294 1,480 1,602 1,520 1,091 1,112 1,212 1,289 1,234 1,132 1,157 1,294 1,287 1,312 2,848 2 572 4,242 2,806 3 226 4,066 4 552 5,510 6,131 251 256 245 176 183 146 84 74 259 445 349 221 92 102 161 398 322 319 315 303 60 106 286 7,514 8,244 48 548 298 45 557 7,160 7,361 8,180 7,726 7,547 8,159 8,461 10, 272 10,105 9,358 52 60 58 55 40 48 36 60 24 35 592 660 677 668 922 930 925 1,013 1,324 1,440 Other assets 656 638 1,065 1,114 735 827 853 765 755 652 755 540 640 984 736 822 1,338 1,313 836 1,001 970 1 Not shown separately on Reichsbank statement after June 15, 1939. NOTE.—For explanation of above table see BULLETIN for February 1931, pp. 81-83, and July 1935, p. 463. Central bank [Figures as of last report date of month] National Bank of Albania (thousands of francs): Gold. Foreign assets Loans and discounts Other assets Note circulation Other sight liabilities Other liabilities Central Bank of the Argentine Republic (millions of pesos): Gold reported separately. _. Other gold and foreign exchange. Negotiable Government bonds Other assets Note circulation Deposits—Member bank Government ___ _ Other Foreign exchange sold forward Other liabilities Commonwealth Bank of Australia (thousands of pounds): Issue department: Gold and English sterling Securities Banking department: Coin, bullion, and cash. London balances Loans and discounts Securities Deposits Note circulation Bank of Belgian Congo (millions of Belgian francs): Gold Loans and discounts Other assets Note circulation Deposits . Other liabilities 1938 1939 Oct. Sept. Aug. Oct. Central bank [Figures as of last report date of month] Oct. National Bank of Belgium (millions of belgas) : Gold reserve __ _ 3,603 845 Other gold and foreign exchange Discounts 552 126 Loans Other assets, . 549 Note circulation __ _ _ 5,370 Demand deposits—Treasury 1 Other 181 Other liabilities 124 1,224 1,224 1,224 Central Bank of Bolivia (thousands of bolivianos) : 105 135 95 282 Gold at home and abroad 277 41 238 Foreign exchange 220 268 1,135 Loans and discounts 1,163 1,053 430 497 372 Securities—Government 169 93 109 Other 3 8 1 Other assets 60 40 41 Note circulation 52 55 54 Deposits. _. Other liabilities National Bank of Bulgaria (millions of leva): Gold 16, 030 16, 030 16,011 Foreign exchange 43, 995 41, 500 37, 305 Loans and discounts Government debt. 1,467 1,869 1,463 Other assets 15, 640 15, 874 20,199 • Note circulation 18, 060 17, 620 14, 935 Deposits _ _ 62, 250 59,550 57, 250 Other liabilities 91,355 87, 262 89, 303 51, 025 48, 525 48, 030 Bank of Canada (thousands of Canadian dollars): Gold 225, 675 Sterling and United States ex166 change _____ 46, 564 470 Canadian Gov't securities: 399 2 years or less 193, 862 363 Over 2 years _ _ _. . 55,039 532 Other assets __ _ 7,893 140 Note circulation _ 224, 401 234,102 Deposits-Chartered banks... Dominion Government 39,089 18, 432 Other 13,008 Other liabilities 7,567 39, 531 4, 965 8,286 25,034 21, 515 13, 799 7,575 18,896 5,583 4,515 10, 978 12,844 12, 746 1938 1939 Sept. Aug. Oct. 3,628 942 440 171 553 5,401 4 206 124 3,622 932 374 273 472 5,299 4 247 124 3,318 905 420 48 458 4,542 54 434 119 56, 695 92. 663 23, 655 402, 753 4,037 43, 321 283, 655 280,129 59, 331 2,003 837 1,259 3,468 1,134 3,115 3,318 2, 267 2,006 705 2,409 3,417 1,386 4,426 3,206 2, 291 225, 675 209, 775 181,146 44, 448 52, 860 36, 364 155, 054 111,018 169, 675 63, 588 52,078 44,989 7,125 10,969 7,234 212, 490 179, 704 178,080 221,127 201,318 228,460 38, 228 30, 695 25, 363 11, 380 11, 216 1,682 9,923 9,558 12,774 1142 FEDERAL RESERVE BULLETIN DECEMBER 1939 CENTRAL BANKS—Continued Central bank [Figures as of last report date of month] Central Bank of Chile (millions of pesos): Gold Discounts for member banks Loans to government _ Other loans and discounts Other assets Note circulation _ __ _ Deposits— Bank _ Other Other liabilities Bank of the Republic of Colombia (thousands of pesos): Gold Foreign exchange Loans and discounts Government loans and securities. Other assets Note circulation. _ _ Deposits Other liabilities National Bank of Czecho-Slovakia ' (millions of koruny): Gold Foreisrn exchance Discounts Loans Other assets Note circulation Demand deposits „ Other liabilities Bank of Danzig (thousands of gulden): Gold Foreign exchange of the reserve Other foreign exchange Loans and discounts Other assets Note circulation Demand deposits Other liabilities National Bank of Denmark (millions of kroner): Gold Foreign exchange Discounts Loans—To Government agencies Other Securities Other assets Note circulation Deposits Other liabilities Central Bank of Ecuador (thousands of sucres): Gold Foreign exchange (net) Loans and discounts Other assets Note circulation Demand deposits Other liabilities National Bank of Egypt2 (thousands of pounds): Gold Foreign exchange Loans and discounts British, Egyptian, and other Government securities Other assets Note circulation Deposits—Government Other Other liabilities 1939 Oct. 37,233 4,944 22 040 37,087 31 986 53, 795 47, 641 31, 855 Sept. 1938 Aug. Oct. 146 81 754 240 66 884 146 67 754 231 43 845 145 57 766 166 43 771 191 54 157 157 86 153 182 74 149 37 383 5,544 21 131 37,105 31 018 54,069 46, 060 32,052 35 453 7,543 19 434 37,167 31 787 53, 628 45, 786 31, 969 41 747 7,893 17 527 46, 548 27 359 54, 301 44, 734 42, 040 1,659 793 1,895 1,019 4 585 6,438 851 2,661 1,698 796 1,855 804 4 354 6,056 702 2,750 2,690 786 3,682 1,161 1 443 7,130 987 1,645 22, 862 1,165 197 31, 661 2,263 54,190 25, 900 19, 010 31,182 455 451 22, 367 3,074 38, 551 16, 816 19,012 117 89 25 97 150 189 108 452 127 T95 118 112 22 163 81 146 110 435 142 176 39, 031 7,193 60, 011 18, 459 64, 742 44, 252 15, 701 34, 051 5,887 52, 269 20, 569 67, 558 29, 554 15, 661 117 39 26 101 182 218 86 480 118 169 6,545 1,708 5,744 27,010 11, 973 22,186 3,945 18, 248 8,603 1939 Central bank [Figures as of last report date of month] Central Reserve Bank of El Salvador (thousands of colones): Gold Foreign exchange Loans and discounts... __ __ Government debt and securities Other assets . _ _ Note circulation Deposits Other liabilities Bank of Estonia (thousands of krooni):8 Gold Foreign exchange (net) Loans and discounts Other assets Note circulation __ Demand deposits Other liabilities _ Bank of Finland (millions of markkaa): 4 Gold Foreign assets Loans and discounts Domestic securities Other assets. _ _ Note circulation _ _ _ Deposits—Treasury Other Other liabilities Bank of Greece (millions of drachmas): Gold and foreign exchange (net) Loans and discounts Government obligations Other assets Note circulation Deposits Other liabilities National Bank of Hungary (millions of pengo): Gold*.__ _ Foreign exchange reserve Discounts Loans—To Treasury _ Other Other assets ___ _ _ _ _ Note circulation __ Demand deposits.. Certificates of indebtedness.. Other liabilities Reserve Bank of India (millions of rupees): Issue department: Gold at home and abroad Sterling securities Indian Gov't securities Rupee coin Note circulation Banking department: Notes of issue department Balances abroad Treasury bills discounted Loans to Government Other assets Deposits Other liabilities Bank of Japan (millions of yen): 29 225 Gold 7,138 Special foreign exchange fund 22, 299 Discounts 3,703 Loans—Government 18,180 Other 8,597 Government bonds Other assets Note circulation Deposits—Government.. Other... __ _ Other liabilities Oct. 124 83 625 343 35 334 1,032 178 94 240 Sept. 1938 Aug. Oct. 13, 208 5,172 837 5,104 1,092 14, 490 7 374 3,550 13, 206 3,421 1,082 5,492 948 13, 644 6 047 4 458 40, 904 7, 370 45, 048 38,115 69, 461 26, 774 35, 203 40, 904 9,454 31, 476 40, 293 56, 981 28, 027 37,119 34, 15, 26, 31, 54, 32, 21 1,181 2,214 1,269 331 274 2,547 132 561 2,028 1,183 2,487 1,155 332 304 2 262 242 906 2,050 620 2,382 1,377 247 348 2 068 273 989 1,645 3,126 13,651 4,207 1,993 10, 639 10, 340 1,996 3,097 12, 388 4,211 2,164 9,980 9,993 1,887 3,410 8,291 4,315 2,115 7,190 8,740 2,201 124 98 627 342 32 331 1,087 148 99 220 124 101 576 343 43 352 1,038 181 99 221 84 115 479 190 14 272 794 126 66 169 444 595 374 755 1,789 444 622 324 709 1,772 379 74 4 6 68 13 428 116 327 29 2 31 56 13 339 119 501 300 451 3 140 1,805 397 2,634 544 501 300 387 3 58 1,850 447 2,461 652 501 300 476 3 63 1,625 245 2,157 554 308 351 397 6,545 1,244 8,626 292 786 697 351 217 229 680 iName changed to National Bank of Bohemia and Moravia, Prague, by decree of March 31, 1939. Items for issue and banking departments consolidated. Gold revalued in part on March 6, 1939 at 0.2802 gram fine gold per kroon. In accordance with law of December 22,1938, gold revalued on December 31,1938, at approximately 0.02 gram fine gold per markka. In accordance with law XXV of 1938 gold revalued on January 15, 1939, at 0.1754 gram fine gold per pengo and resulting increment included in other assets. 2 8 4 8 1143 FEDERAL RESERVE BULLETIN DECEMBER 1939 CENTRAL BANKS—Continued Central bank [Figures as of last report date of month] Bank of Java (millions of guilders): Gold Foreign bills Loans and discounts Other assets Note circulation Deposits Other liabilities Bank of Latvia (millions of lats): Gold.. -_ _ Foreign exchange reserve... . _ Loans and discounts Other assets. _ _ Note circulation Deposits Other liabilities Bank of Lithuania (millions of litu): Gold Foreign exchange Loans and discounts Other assets _ Note circulation Deposits Other liabilities Netherlands Bank (millions of guilders) : Gold. Silver (including subsidiary coin) Foreign bills Discounts Loans Other assets Note circulation Deposits—Government Other Other liabilities Reserve Bank of New Zealand (thousands of pounds): Gold _.. _ . Sterling exchange reserve. Advances to State or State undertakings Investments Other assets __ __ _ _ Note circulation ' Demand deposits Other liabilities Bank of Norway (millions of kroner) * Gold _ Foreign assets Total domestic credits and securities Discounts Loans Securities Other assets Note circulation Demand deposits—Government Other Other liabilities Central Reserve Bank of Peru (thousands of soles): Gold and foreign exchange.. _ Discounts Government loans Other assets Note circulation Deposits Other liabilities Bank of Poland (millions of zlotys): Gold Foreign exchange Loans and discounts Securities Special gov't debts Other assets Note circulation Other sight liabilities Other liabilities 1 2 1939 Oct. 98 31 180 45 119 184 51 Sept. 1938 Aug. Oct. 129 9 70 92 199 75 26 129 9 67 91 193 77 25 117 3 64 114 189 83 26 98 35 176 47 118 187 51 98 35 153 52 89 204 45 83 42 148 60 83 202 48 58 9 145 42 170 45 38 60 6 132 43 173 39 30 71 4 114 33 143 55 24 1 104 7 2 90 249 74 1,142 1 129 17 2 48 260 68 1,132 336 48 344 48 1 481 20 4 17 302 67 1 046 140 658 47 2,802 5,312 2,802 5,690 2,802 7,708 20, 843 3,816 598 16, 648 14, 710 2,014 19, 634 3, 658 357 15, 802 14, 377 1,962 10 881 2,732 328 14, 438 8,347 1 666 237 78 236 128 211 219 384 182 75 126 27 538 21 81 86 309 136 47 126 43 505 21 109 81 212 73 33 106 39 456 29 115 81 51, 654 24, 045 84 614 5,283 106,119 43, 629 15 848 433 13 1,034 127 0) 360 1,476 121 370 Central bank [Figures as of last report date of month] Othfir assets Notfi circulation "OeTriflnrj deposit^ Other liabilities South African Reserve Bank (thousands of pounds): Gold Foreign bills Other bills and loans Other assets Note circulation Deposits Other liabilities Bank of Sweden (millions of kronor): Gold Foreign assets Discounts _ Loans Domestic securities Other assets Note circulation DeTiRnd deposits Other liabilities Swiss National Bank (millions of francs): Gold Foreign exchange Discounts Loans. Other assets Note circulation Other sight liabilities Other liabilities Central Bank of the Republic of Turkey (thousands of pounds): Gold Foreign exchange—Free In clearing accounts Loans and discounts Securities Other assets Note circulation Deposits Other liabilities Bank of the Republic of Uruguay (thousands of pesos): Issue department* Gold and silver Note circulation __ _ Banking department: Gold Notes and coin Loans and discounts Other assets Deposits Other liabilities National Bank of the Kingdom of Yugoslavia (millions of dinars): Gold Foreign exchange Loans and discounts Government debt __ Other assets._. Note circulation Other sight liabilities Other liabilities 1938 Sept. Aug. Oct. 920 495 225 415 1 036 1 249 2,374 952 1,013 920 456 219 413 1 036 1 250 2,230 1 040 1,024 918 493 172 f'435 1 039 1,318 2,171 1 099 1,105 20,393 4,762 21,869 1,382 10,197 13, 700 47, 977 8,933 15, 393 20, 267 4,195 17, 930 1,441 10,183 12,490 42, 351 11,004 13,150 18,078 4,207 12, 230 1,850 10, 500 10, 687 34, 581 12, 063 10, 908 28, 398 7,125 18 18, 225 20 545 29, 880 3,341 26, 910 6,421 2 719 15, 848 16 712 31, 676 3,511 26, 560 7,170 1,822 15, 403 17 755 29, 951 3,249 732 452 14 111 207 511 1,248 573 207 786 529 13 78 194 535 1,259 703 173 782 608 11 60 186 545 1,126 884 183 707 890 13 28 86 462 1,028 985 172 2,395 291 95 54 686 2,036 835 649 2,419 285 94 49 684 2,082 802 648 2,419 288 63 43 684 2,024 828 646 2,873 302 111 26 707 1,736 1,641 642 Oct. Bank of Portugal (millions of escudos): Gold. Other reserves (net) Non-reserve exchange Loans and discounts... Government debt Other assets Note circulation Other sieht liabilities Other liabilities National Bank of Rumania (millions of lei): Gold Special exchange accounts Loans and discounts Special loans 2 Not reported separately on bank statement; included with loans and discounts. Agricultural and urban loans in process of liquidation. 1939 36, 837 3 2,419 205, 985 197, 852 28,109 288, 521 64,072 118, 612 36,906 36, 871 1 11 3,556 17, 500 154,080 92, 058 193, 539 189, 951 28,053 34,173 229, 521 196, 611 65,461 64,978 121,165 108, 965 86, 235 87, 296 86, 235 103, 585 89, 548 86, 520 2,316 21,003 20,826 52, 327 50,194 48, 718 112,004 108, 563 97, 596 106, 349 108, 389 69, 209 88, 948 87, 450 80, 373 202, 735 200, 521 137, 466 1,987 616 2,573 2,835 3,944 9,244 1,546 1,164 1,987 582 2,494 2,400 3,961 9,108 1,095 1,221 1,924 509 2,132 2,231 3,332 7,986 1,350 791 1,893 442 1,896 2,243 3,457 7,012 2,049 869 1144 FEDERAL RESERVE BULLETIN D E C E M B E R 1939 BANK FOR INTERNATIONAL SETTLEMENTS [In thousands of Swiss gold francs 1] 1939 1938 1939 Assets 1938 Liabilities Oct. 31 Gold in bars Cash on hand and on current account with banks _ Sight funds at interest Sept. 30 17, 532 16, 523 15,851 13,814 27, 337 11, 536 Rediscountable bills and acceptances (at cost) Time funds at interest Sundry bills and investments Other assets _ 158,019 26, 575 214, 265 176,062 32, 979 226,008 6, 233 3,027 Total assets 452, 290 493, 472 Oct. 31 29, 303 Demand deposits (gold) Oct. 31 Sept. 30 10,664 10,688 9,347 20,175 3,148 40,169 3,002 110,941 8,549 229, 644 250, 906 254,888 188, 659 188, 706 202, 204 452, 290 493, 472 585,929 ___ 27, 935 Short-term deposits (various currencies) : 14,434 Central banks for own account Other 201,065 52,080 Long-term deposits: Special accounts.. 248, 243 Other liabilities 12, 869 Total liabilities __ 585, 929 Oct. 31 i See BULLETIN for December 1936, p. 1025. MONEY RATES IN FOREIGN COUNTRIES [Per cent per anum] United Kingdom (London) Month Bankers' acceptances 3 months 1929—October... 1930—October... 1931—October... 1932—October... 1933—October... 1934—October... 1935—October. _. 1936—October. __ 1937—October. __ 1938—October.. _ 6.13 2.09 5.68 1939—April May _ June July August September October Treasury bills, 3 months Bankers' Day-to-day allowance money on deposits .77 .63 .56 .55 .70 6.19 2.13 5.46 .71 .73 .68 .62 .54 .53 .68 5.45 1.65 4.36 .71 .75 .75 .75 .75 .75 .75 1.40 .73 .75 .79 1.58 3.51 1.88 1.36 .70 .76 .77 1.92 3.23 1.77 .75 .77 .75 1.35 2.72 1.71 Netherlands (Amsterdam) Germany (Berlin) Switzerland Belgium (Brussels) France (Paris) Italy (Milan) Private discount rate Private discount rate Private discount rate Private discount rate Private discount rate l Money for Day-to-day 1 month money 1 Private discount rate Money for 1 month 7.28 4.66 8.00 3.87 3.87 3.81 3.04 2.94 2.88 2.88 9.06 5.93 9.84 5.00 5.50 5.13 3.26 2.82 2.91 2.88 8.06 5.15 9.21 4.94 5.11 4.63 3.13 2.82 2.81 2.70 5.15 1.59 2.76 .37 .50 .59 4.70 1.87 .13 .21 4.52 1.48 3.07 1.00 1.00 1.00 5.00 2.51 .50 .50 2.88 2.77 2.79 2.75 2.75 2.75 2.88 2.53 2.50 2.50 2.50 2.36 2.46 2.71 2.65 2.50 2.51 1.11 .72 .49 .51 1.03 2.94 1.90 1.24 .80 .75 .75 1.53 3.66 2.24 Sweden (Stockholm) Hungary Japan (Tokyo) Month 1929—September 1930—September 1931—September 1932—September 1933—September 1934—September 1935—September. 1936—September 1937—September 1938—September 3.38 1.50 1.80 1.50 1.50 1.50 2.40 1.98 1.00 1.00 4.94 2.39 2.44 3.00 2.27 2.15 1.88 1.38 1.00 3.26 3.50 1.99 1.50 1.00 1.13 1.50 2.85 3.38 3.54 2.65 7.01 5.48 5.47 5.50 3.55 3.00 4.87 4.50 5.00 5.00 1939—March April May June July August September 1.00 1.00 1.00 1.00 1.00 1.00 1.25 3.28 4.28 3.99 2.79 2.30 2.24 1.94 5.00 5.00 5.00 5.00 5.00 95 2.70 Prime Loans up commer- Day-to-day to 3 money cial paper months M7M 8-1034 ^ 8 % V2 434- 7V2 4- 7 4 - &A 4 - 634 5-6 4-4% 334 334 3 2% 3^-534 3-5 234-5 2M-4H 2^-5 2^5 2H-5 4^-63 Call Discounted money bills overnight 5.48 5.48 4. 93-5. 48 5. 66-6. 21 5.11-5. 48 5.11 5.11 4.75 4.75 4.56 4.47 4.47 4.47 4.47 134 134 134 134 2.92 3.65 2.56 3.47 2.56 2.63 2.62 2.81 2.46 2.33 2.54 2.47 2.37 2.39 23-3-5 1 Beginning September 1939 figures are those published in the Wochenbericht des Instituts fur Konjunkturforschung. NOTE.—For explanation of table see BULLETIN for November 1926, pp. 794-796; April 1927, p. 289; July 1929, p. 503; November 1929, p. 736; May 1930, p. 318; and September 1938, p . 757. 1145 FEDERAL RESERVE BULLETIN DECEMBER 1939 DISCOUNT RATES OF CENTRAL BANKS [Per cent per annuml Central bank of— Date effective In effect June 30, 1936 July 7 July 10 Sept. 9 Sept. 25 Oct 2 Oct. 9 Oct. 16... ._ Oct. 20 Nov. 26 Dec 3 Jan. 28, 1937 June 15 July 7 Aug 4 Sept. 3 Nov 13 May 10, 1938 May 13 May 30 Sept 28 Oct 27 Nov 25 Jan 4 1939 Apr. 17 May 11 July 6 Aug. 24 Aug 29 Sept. 28 Oct. 26 In effect Nov. 28, 1939. _ United GerKing- France many dom Belgium 4 2 2 4 Central bank of— Neth- Switzerer Japan lands land 3 2H 2 2 5 3 2 2H 3 Wi 2 4 6 5 4 2 4 2H 3 3 2H 2K 2 Date effective Albania 6 April 1, 1937 Argentina.. Mar. 1, 1936 Belgium July 6, 1939 Bolivia 6 2 July 5, 1932 Britishlndia Nov. 28, 1935 3 Bulgaria Aug. 15, 1935 6 Canada Mar. 11, 1935 Chile 3-4K Dec. 16, 1936 Colombia... July 18, 1933 Czechoslovakia. _ 3 Jan. 1, 1936 Danzig Jan. 2, 1937 4 Denmark. __ Oct. 10, 1939 Ecuador 4 Nov. 30, 1932 El Salvador Mar. 30, 1939 3 Estonia Oct. 1, 1935 Finland Dec. 3, 1934 4 France 2 Jan. 4, 1939 Germany... Sept. 22, 1932 4 Greece . Jan. 4, 1937 6 Hungary Aug. 29, 1935 4 Italy 4H May 18, 1936 3.29 3 2 Rate Nov. 28 Central bank of— Rate Nov. 28 Japan Java Latvia Lithuania Mexico Netherlands New Zealand Norway Peru Poland Portugal Rumania South Africa Spain Sweden Switzerland Turkey United Kingdom U. S. S. R... Yugoslavia. . 3.29 3 6 3 3 2 4 Date effective Apr. Jan. Jan. July Mar. Aug. 7, 1936 14, 1937 1, 1939 15, 1939 1, 1937 29, 1939 4 Nov. 19, 1938 Sept. 22, 1939 May 20, 1932 Dec. 18, 1937 Aug. 11, 1937 May 5, 1938 May 15, 1933 *Mar. 29, 1939 Dec. 1, 1933 Nov. 26, 1936 July 1, 1938 2 4 5 Oct. 26, 1939 July 1, 1936 Feb. 1, 1935 4 2 1 Not officially confirmed. Changes since Oct. 26: None. 4 3 4 3 3 2 2 2 4 2H 3 IK 3.29 COMMERCIAL BANKS [Figures as of end of month, except those for United Kingdom, which are averages of weekly figures] Liabilities Assets United Kingdom (Figures in millions of pounds sterling) Cash Money at call and Bills discounted short notice Securities Loans to customers Other assets Deposits Total Demand i Time i Other liabilities 10 London clearing banks 1930—December. 1931—December. 1932—December. 1933—December. 1934—December. 1935—December. 1936—December. 1937—December. 1938—December. 208 184 207 213 216 221 236 236 235 144 119 127 119 151 159 187 155 150 322 246 408 311 255 322 316 295 244 285 297 472 565 594 605 630 605 606 933 905 778 740 759 784 864 954 940 240 222 208 237 247 231 238 242 250 1,876 1,737 1,983 1,941 1,971 2,091 2,238 2,250 2,172 1,015 1,044 1,140 847 846 963 900 910 924 254 237 216 244 251 231 232 237 254 992 868 991 11 London clearing banks 2 1936—December. 1937—December. 244 244 195 163 322 300 660 635 890 984 249 256 2,315 2,330 1,288 1,284 1,012 1,026 245 252 1938—September. October. __ November. December. 234 234 233 243 148 149 149 160 289 268 272 250 646 645 642 635 973 973 966 971 242 256 255 263 2,269 2,256 2,249 2,254 1,236 1,247 1,244 1,256 1,033 1,009 1,004 262 270 269 269 1939—January... February.. March April _ May June _ July August September October 3__ 248 243 232 229 236 235 235 233 268 256 143 138 141 145 144 150 155 152 146 159 256 212 190 184 201 249 278 279 236 289 625 617 611 611 605 600 597 599 603 605 972 982 992 997 992 993 986 985 252 253 249 256 258 257 251 269 276 271 2,230 2,176 2,152 2,155 2,167 2,219 2,240 2,245 2,278 2,327 1,260 1,213 1,186 1,185 1,194 1,232 1,241 1,239 970 964 966 970 973 987 999 1,016 1,020 997 1,007 267 268 264 267 268 265 263 273 266 272 1 Through December 1937 excludes deposits in offices outside England and Wales, which are included in total. Figures for 10 banks not available2beginning 1936. District Bank included beginning in 1936. 3 Figures combined from reports by banks for one or another of several days near end of month; averages of weekly figures discontinued. NOTE.—For other back figures and explanation of tables see BULLETIN for October 1933, pp. 639-640. 1146 FEDERAL RESERVE BULLETIN DECEMBER 1939 COMMERCIAL BANKS—Continued [Figures as of end of month] Assets France (4 large banks. Figures in millions of francs) Cash 1930—December. 1931—December. 1932—December. 1933—December. 1934—December. 1935—December. 1936— December. 1937—December. 1938—November December. 1939—January. _. February.. March April May June July August p__ 2,419 11,311 9,007 5,870 5,836 3,739 3,100 3,403 3,357 3,756 3,329 3,433 3,604 3,522 5,148 3,538 3,464 6,357 Due from Bills disbanks counted 4,675 2,168 1,766 1,416 1,421 2,484 2,975 4,116 4,318 4,060 3,985 3,824 3,519 3,745 3,769 3,857 3,580 3,718 20,448 18,441 22,014 19,848 18, 304 16,141 17, 582 18, 249 18, 522 21, 435 22,100 23,024 23, 945 25, 667 25,102 25, 263 25, 717 18, 784 Other Loans Total 10,743 9,274 7,850 8,309 8,159 8,025 7,631 7,624 7,956 7,592 7,079 6,927 6,654 6,414 7,061 6,538 6,850 7,353 Demand 36,681 38,245 37,759 32, 635 30,943 27, 553 28,484 30,348 30,971 33, 578 33,444 34, 243 34, 793 36, 368 38,120 36, 231 36, 650 33, 293 2,361 2,130 1,749 1,827 1,717 1,900 1,957 2,134 1,976 1,940 1,339 1,250 1,310 1,353 1,409 1,472 1,532 1,674 Cash (5 large Berlin banks. Figures in millions of reichsmarks) reserves 191 173 143 131 115 139 137 148 199 270 179 195 184 175 219 189 237 214 Due from banks 1,483 817 583 471 393 316 269 299 255 295 261 270 285 307 308 271 292 306 35,284 37,023 36,491 31,773 30,039 26,859 27,955 29, 748 30,460 33,042 32,863 33, 619 34,127 35, 700 37, 444 35, 547 35, 991 32, 668 1,397 1,222 1,268 862 904 694 529 600 511 537 581 624 667 667 676 684 659 626 3,934 3,888 3,904 4,364 4,537 4,108 921 576 295 273 193 337 473 661 746 721 643 538 541 558 519 486 430 455 Other liabilities 4,357 4,503 4,331 4,362 4,301 4,399 4,289 4,517 4,411 4,484 3,745 3,677 3,697 3,775 3,849 3,951 4,063 4,138 Liabilities Bills dis- Loans counted 2,453 1,431 1,631 1,702 2,037 2,162 2,567 3,205 3,589 3,384 3,620 3,643 Own acceptances Time Assets Germany i 1930—November.. 1931—November.. 1932—November.. 1933—November.. 1934—November.. 1935—November.. 1936—November.. 1937—November.. 1938—August September.. October November.. 1939—January February..., March April May June Liabilities Deposits 7,416 5,377 4,570 3,731 3,331 2,884 2,729 2,628 2,731 2,817 2,743 2,685 2,708 2,798 2,833 2,761 2,772 Securities 482 807 938 860 874 ,027 ,112 ,020 ,098 ,097 ,183 L, 406 L, 178 , 145 ,112 ,082 1,073 1,080 Deposits Other Total 1,127 991 1,003 851 812 844 876 895 902 901 891 852 829 9,091 6,062 6,161 5,754 5,816 5,376 5,751 6,264 6,933 6,915 7,031 7,234 7,334 7,377 7,458 7,745 7,981 7,793 Demand 3,857 3,252 2,958 2,624 2,731 2,435 2,661 2,912 3,219 3,311 3,373 3,531 3,619 3,576 3,693 3,870 3,996 3,793 Time 5,233 2,810 3,203 3,130 3,085 2,941 3,090 3,352 3,714 3,603 3,658 3,703 3,716 3,801 3,765 3,875 3,985 3,999 Credits obtained from banks 1,986 1,328 1,146 661 485 686 579 513 416 424 422 420 414 410 401 398 396 390 Other liabilities 1,828 2,341 1,550 1,481 1,432 :, 449 ,334 ,335 :,368 ,400 1,427 1,438 1,436 1,427 1,418 1,414 1,385 1,342 Liabilities Canada '10 chartered banks. Figures in millions of Canadian dollars) 1930—December. 1931—December. 1932—December. 1933—December. 1934—December. 1935—December. 1936—December. 1937—December. 1938—November. December. 1939—January... February.. March April May June July.. August September. Security loans abroad and net Securities Other due Security loans from loans and dis- foreign counts banks Entirely in Canada Cash 207 201 211 197 228 228 240 255 277 263 276 267 259 260 266 255 266 265 279 205 135 103 106 103 83 114 76 64 65 63 60 56 54 55 53 51 49 51 1,275 1,253 1,104 1,036 977 945 791 862 970 940 919 921 943 956 963 957 947 957 1,020 171 146 155 134 155 141 161 102 192 166 167 171 192 203 217 226 202 245 214 604 694 778 861 967 1,155 1,384 1,411 1,426 1,463 1,454 1,490 1,499 1,509 1,505 1,525 1,520 1,507 1,502 Other 602 510 439 432 449 485 507 510 471 474 459 450 458 449 452 494 468 461 475 Note circulation . 133 129 115 121 124 111 103 96 92 88 85 88 93 90 85 92 95 Deposits payable in Canada excluding interbank deposits Total 2,115 2,058 1,916 1,920 2,035 2,180 2,303 2,335 2,499 2,500 2,457 2,471 2,492 2,509 2,524 2,542 2,520 2,524 2,583 Demand 538 563 628 694 755 752 844 840 789 780 791 812 846 862 822 822 891 Other liabilities Time 1,426 1,360 1,378 1,357 1,407 1,486 1,548 1,583 816 752 760 725 718 745 790 786 1,655 1,660 808 782 1,667 1,691 1,700 1,697 1,678 1,680 1,697 1,702 1,692 7fi6 800 821 833 850 875 849 873 862 v Preliminary. i Combined monthly balance sheets not published for December. Prior to merger of two of the banks in February 1932 figures refer to six large Berlin banks. Beginning in 1935 figures are not entirely comparable with those shown for previous years due to changes in reporting practice (See BULLETIN for June 1935, p. 389). NOTE.—For othe r back figures and explanation of table see BULLETIN for October 1933, pp. 641-646; June 1935, pp. 388-390; and August 1939, p. 699. 1147 FEDERAL RESERVE BULLETIN DECEMBER 1039 FOREIGN EXCHANGE RATES [Averages of certified noon buying rates in New York for cable transfers. In cents per unit of foreign currency] Brazil (milreis) Australia (pound ) Argentina (peso) Year or month Belgium (belga) Official 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 95 127 83 505 66. 738 58 443 72. 801 33 579 32 659 33 137 32. 959 32 597 480 83 458 6C 351. 5C 279 92 337.07 400 91 388.8(> 395 94I 393. 94I 389. 5,) 13 912 11.8072 13 952 10.7136 7.0290 13. 929 7.1223 13 914 7. 9630 17. 900 23 287 8. 4268 8. 2947 18.424 16 917 8. 5681 8. 7190 16.876 5. 8438 16.894 1939—February M!arch April M^ay June July August September October 31.236 31 234 31 207 31 210 31.217 31.211 31. lie 373. 3[\ 373 2"7 372. 8(3 372 8<) 373.112 373. o:$ 367.3 I 318 3 I 319.5 L 16.860 16 823 16.838 17 016 17.008 16.991 16.968 17.028 16.729 Year or month 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939— F e b r u a r y _ _. March. April May June July . _ 29. 77C Chile (peso) Free market 5. 8788 6.1806 5. 8602 5. 8647 5. 8595 6. 0585 6. 0571 6.0579 6. 0594 6. 0575 5.1038 5.0555 5.0236 5.0162 5. 0503 Export China (yuanShanghai) Colombia (peso) 12.0601 12. 0785 12. 0669 7. 9079 7. 6787 10.1452 5.0833 5.1240 5.1697 5.1716 4.0000 4. 0000 41.901 29.917 22. 437 21. 736 28. 598 34.094 36. 571 29. 751 29. 606 21. 360 96.551 96. 493 96. 570 95. 275 81. 697 61. 780 56.011 57.083 56. 726 55. 953 99 99 99. 99 99 99 99 99 99. 99 99. 502 99. 583 99. 483 99. 620 99. 773 99. 835 99.494 91. 255 89. 331 5.1736 5. 1733 5.1735 5.1733 5.1737 5.1703 5.1691 5.1776 5.1713 4.0000 4.0000 4. 0000 4.0000 4.0000 4.0000 4.0000 4.0000 4. 0000 15. 885 16.016 16.015 15.987 13. 434 10. 637 7.163 6.696 7.638 56.990 56. 983 56. 982 57.009 57.169 57.036 57.061 57. 068 57.151 99 933 99 932 99 936 99 942 99. 949 99. 950 99.950 Hungary (pengo) Italy (lira) Japan (yen) Mexico (peso) Netherlands (guilder) Bulgaria (lev) Canada — (dollar) 36.202 36.067 33. 690 26.347 31. 816 37. 879 36. 964 37. 523 37. 326 36. 592 .7216 .7209 .7163 .7193 1.0039 1. 2852 1. 2951 1. 2958 1. 2846 1. 2424 99.247 99. 842 96. 326 88.090 91. 959 101.006 99. 493 99. 913 100.004 99. 419 35.014 35.057 34. 962 34.916 34. 924 34. 905 34.407 29. 928 30. 296 1. 2130 1. 2103 1. 2089 1. 2101 1. 2077 1. 2126 1. 2111 British India (rupee) Official Cuba (peso) 965 952 930 941 946 936 920 909 916 925 DenEgypt mark . (krone) u Dound) Finland (markka) France (franc) GerHong many Greece (drach- Kong (reichs- ma) (dollar) mark) 2.9609 2. 9640 2. 9619 2. 9618 3. 8232 4. 2424 4.1642 4. 0078 3.4930 3. 4674 26.680 26. 765 25.058 18. 832 19. 071 22. 500 21. 883 22.189 22. 069 21. 825 498.07 498. 60 465.11 359. 54 434. 39 516. 85 502. 60 509. 68 506. 92 501. 30 2, 5160 2. 5169 2. 3875 1. 5547 1. 8708 2. 2277 2.1627 2.1903 2.1811 2.1567 3.9161 3. 9249 3. 9200 3.9276 5. 0313 6. 5688 6. 6013 6.1141 4. 0460 2. 8781 23.809 23. 854 23. 630 23. 749 30. 518 39. 375 40. 258 40. 297 40. 204 40.164 1.2934 1. 2959 1. 2926 .8320 .7233 .9402 .9386 .9289 .9055 .8958 47.167 33. 853 24. 331 23.460 29. 452 38. 716 48. 217 31.711 30. 694 30. 457 17.441 17.494 17. 452 17. 446 22. 360 29. 575 29. 602 29. 558 19. 779 19. 727 5. 2334 5. 2374 5. 2063 5.1253 6. 7094 8. 5617 8. 2471 7. 2916 5. 2607 5. 2605 46.100 49.390 48. 851 28. I l l 25. 646 29. 715 28. 707 29.022 28. 791 28. 451 48.183 47.133 35. 492 31. 850 28.103 27. 742 27. 778 27. 760 27. 750 22.122 40.162 40. 225 40. 230 40. 295 51. 721 67. 383 67. 715 64. 481 55.045 55.009 483 21 468 22 415 29 320.19 340 00 402. 46 391. 26 398.92 396. 91 392 35 3.4248 3. 4245 20.912 20. 912 20.891 20.895 20. 900 20. 896 20.834 19 317 19.291 480.43 480. 40 479. 90 479.97 480.10 480. 00 472. 41 432 04 2. 0604 2.0597 2. 0542 2.0548 2.0559 2.0547 2.0456 1. 9000 1. 8943 2. 6471 2. 6488 2. 6478 2. 6487 2. 6493 2. 6488 2. 6137 2. 2651 2. 2736 40.117 40. 098 40. 081 40.115 40.105 40.113 39.859 39. 500 .8583 .8586 .8579 .8570 .8565 .8576 .8520 . 7575 .7345 29. 078 29. 049 28. 659 28. 884 28. 916 28. 703 28. 213 24. 863 25. 030 19. 627 19. 613 19. 602 19.588 19. 577 19. 576 19. 576 5. 2602 5. 2601 5. 2601 5. 2603 5. 2604 5. 2605 5.2515 5.1445 5.0465 27. 297 27. 300 27. 274 27. 277 27. 284 27. 279 26.870 23. 459 23. 510 19. 973 20. 026 20.023 20.025 19. 753 17.133 16.800 19. 023 20.151 53. 626 53.092 53.132 53. 601 53.167 53. 278 53.484 53.182 53.115 374. 84 374. 78 374 41 374.42 374 60 374. 49 368 82 319 75 320. 81 Czechoslovakia koruna) August September October ___ _ New Zealand (pound) Uruguay (peso) Year or month Norway (krone) Poland (zloty) Straits SweRuma- South PortuSpain Settleden nia Africa gal ments (peseta) (leu) (escudo) (pound) (dollar) (krona) 1929 1930 1931 1932 1933 1934 . . . 1935 1936 1937 1938 26.683 26. 760 25.055 18.004 21. 429 25. 316 24. 627 24. 974 24. 840 24. 566 11 194 11. 205 11.197 11.182 14. 414 18. 846 18.882 18.875 18. 923 18.860 4.4714 4. 4940 4. 2435 3.1960 3. 9165 4. 6089 4. 4575 4. 5130 4. 4792 4. 4267 .5961 .5953 .5946 .5968 .7795 1.0006 .9277 .7382 .7294 .7325 483. 27 483. 79 480. 76 476. 56 414. 98 498. 29 484. 66 491. 65 489. 62 484.16 1939—February March April Mav June.July... ~ . August September.. October 23. 539 23. 539 23 515 23. 519 23. 524 23. 520 23. 376 22. 655 22. 697 18 898 18. 860 18 818 18 812 18.812 18. 808 18.754 4. 2508 4. 2502 4 2448 4. 2460 4. 2484 4. 2506 4. 2234 3. 6564 3. 6444 .7272 .7140 .7056 .7056 .7042 .7035 .7043 463. 83 463. 74 462. 80 463.11 463. 32 463. 28 456.10 394. 57 396.12 United Switzerland Turkej' King) dom (pound (franc) (pound; Controlled Yugoslavia Non-con- (dinar) trolled 14.683 11. 667 9.545 8.044 10. 719 13. 615 13.678 12. 314 6.053 5.600 56 f11? 55. }64 52. 445 40 W 49. ?3? 59. 005 57 73 58 258 57. 973 56. 917 26. 784 26. 854 25. 254 18. 471 22.032 25. 982 25. 271 25. 626 25. 487 25.197 19. 279 19. 382 19. 401 19.405 24. 836 32. 366 32. 497 30.189 22. 938 22. 871 48.411 47. 061 47.181 47. 285 60. 440 79.047 80.312 80. 357 80.130 80.109 485 69 98. 629 486. 21 85.865 453. 50 55. 357 350. 61 47.064 423. 68 60. 336 503. 93 79. 956 490.18 80. 251 497.09 79. 874 494. 40 79.072 488 94 64. 370 1 1 1 1 1 2 2 2 2 2 11. 023 11. 023 11. 023 11. 000 10. 492 10.148 54. 416 54. 394 54 ?73 54 S73 54. 509 54 785 53. 996 46. 712 47. 017 24.133 24.130 24. I l l 24.110 24.107 24.114 24. 002 23. 763 23.792 22. 672 22. 614 22. 431 22. 480 22. 546 22. 550 22. 573 22. 57f 22. 433 80. 385 80.361 80. 279 80. 290 80.101 80. 021 80.022 79. 500 468 57 468. 54 468 05 468 13 468. 24 468.15 461. 07 399. 51 401.05 2 2820 2 2781 2 2636 2 2675 2. 2674 2 2744 2. 2729 61 646 61. 650 61 592 61. 598 61. 609 61. 600 60. 659 52. 595 52.847 35.620 35. 818 35. 698 38.180 39. 022 7591 7681 7680 6411 7607 2719 2837 2965 3060 3115 NOTE.—Developments affecting averages since September 1939 have been as follows: No rates certified for following days: Argentina—Oct. 1-16; Bulgaria, Cuba, Egypt, Germany, Hungary, Poland, Rumania, Turkey, and Yugoslavia—Oct. 1-31; Uruguay—Oct. 17-31. Quotations no longer nominal for Australia, Denmark, Finland, Hong Kong, Italy, Norway, Portugal, South Africa, Straits Settlements, and Sweden. For further information concerning nominal status of exchange quotations, special factors affecting the averages, and changes in the basis of quotation, see BULLETINS for March 1938, p. 244; March 1939, p. 236; September 1939, p. 831; and November 1939, p. 1031. 1148 FEDERAL RESERVE BULLETIN DECEMBER 1939 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES WHOLESALE PRICES—ALL COMMODITIES [Index numbers] United Canada States (1926=100) (1926=100) Year or month United Kingdom (1930=100) France (1913=100) Germany (1913=100) Italy (1928=100) Japan (October 1900=100) Netherlands (1926-30= 100) Switzerland (July 1914 =100) 237 106 144 220 181 141 126 110 96 91 90 90 96 111 107 1926 100 100 1124 695 134 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 95 86 73 65 66 75 80 81 86 79 96 87 72 67 67 72 72 75 85 79 100 88 86 86 88 89 94 109 101 627 554 500 427 398 376 338 411 581 653 137 125 111 97 93 98 102 104 106 106 95 85 75 70 63 62 68 76 89 95 161 180 178 186 198 238 251 100 90 76 65 63 63 62 64 76 72 1938—September October November. __ _ December 78 78 78 77 75 74 74 73 98 99 98 98 652 664 674 684 106 106 106 106 97 97 97 96 252 253 254 255 71 71 70 71 106 106 106 106 1939—January 77 77 77 76 76 76 75 75 79 79 73 73 73 73 74 73 73 72 78 97 97 97 97 98 98 98 98 105 pill 689 685 683 675 684 683 678 674 107 107 107 106 107 107 107 107 107 97 97 98 98 97 98 96 259 264 265 266 270 270 270 272 288 70 70 70 70 70 70 70 71 106 105 105 106 107 106 107 107 117 __ — February March April May __ _ __ June July August __ September October p Preliminary. i Approximate figure, derived from old index (1913=100). WHOLESALE PRICES—GROUPS OF COMMODITIES [Indexes for groups included in total index above] United Kingdom (1930=100) United States (1926=100) Year or month Farm products Foods Other commodities Foods Industrial products France (1913=100) Germany (1913=100) Farm and food products Industrial products Agricultural products Provisions Industrial raw Indusand semi- trial finfinished ished products products 1926 100 100 100 581 793 129 132 130 150 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 105 88 65 48 51 65 79 81 86 69 100 91 75 61 61 71 84 82 86 74 92 85 75 70 71 78 78 80 85 82 100 89 88 83 85 87 92 102 97 100 87 85 87 90 90 96 112 104 579 526 542 482 420 393 327 426 562 641 669 579 464 380 380 361 348 397 598 663 130 113 104 91 87 96 102 105 105 106 125 113 96 86 75 76 84 86 96 91 132 120 103 89 88 91 92 94 96 94 157 150 136 118 113 116 119 121 125 126 68 67 68 68 75 74 74 73 81 81 81 80 92 93 91 92 102 102 103 102 631 646 662 684 669 680 685 685 106 106 107 107 91 92 95 95 94 94 94 94 126 126 126 126 67 67 66 64 64 62 63 61 69 67 72 72 70 69 68 68 68 67 75 73 80 80 80 81 81 80 80 80 82 84 93 91 90 91 92 92 91 90 101 100 100 100 100 101 101 102 102 107 688 673 671 650 652 643 629 616 690 694 694 697 712 718 721 726 108 108 108 107 108 109 109 109 108 94 94 94 92 94 91 92 92 94 94 95 95 94 94 95 95 95 126 126 126 126 126 126 126 126 126 - - 193g—September October _ _ November __ _ December 1939—January February March April May June July . August September October __ _ _ _ P109 r Preliminary. Sources— See BULLETIN for March 1931, p. 159; March 1935, p. 180; October 1935, p. 678; March 1937, p. 276; and April 1937, p. 372. DECEMBER 1149 FEDERAL RESERVE BULLETIN 1939 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES—Continued Year or month RETAIL FOOD PRICES COST OF LIVING [Index numbers] [Index numbers] EngGer- Nether- SwitzUnited land lands erland States France many 192319131911June July July 1925=100 1914=100 1914=100 1914=100 1913=100 1914=100 Nether- SwitzGerEngUnited lands perland land France many States June 19111923July 19131925=100 1914=100 1930=100 1914=100 1913=100 1914=100 Year or month 1926 109 161 554 146 161 160 1926 103 170 142 168 162 1929 1930 1931 1932. 1933 1934 1935 1936 1937. 1938 105 100 82 68 66 74 81 82 85 79 154 145 131 126 120 122 125 130 139 141 611 614 611 536 491 481 423 470 601 702 156 146 131 116 113 118 120 122 122 122 162 150 136 119 120 124 118 120 127 130 156 152 141 125 117 115 114 120 130 130 1929 1930 1931_. 1932 1933 . 1934 1935 1936 1937 1938 100 97 89 80 76 79 81 82 84 83 164 158 148 144 140 141 143 147 154 156 154 148 136 121 118 121 123 125 125 126 168 161 151 141 139 140 161 158 150 138 131 129 CO <M I> COCO C< 128 130 137 1938-September October. __ November December. 79 78 78 79 140 139 140 139 697 725 727 742 121 121 121 121 130 130 128 130 130 1938-September 130 October 130 November 130 December. 83 156 155 156 156 125 125 125 125 139 138 137 138 137 137 137 137 1939-January . . February March April May June JulyAugust... September October. __ 78 77 76 77 77 76 77 75 79 78 138 138 135 135 748 744 742 734 122 122 123 122 138 123 136 136 137 136 137 138 134 738 134 139 739 741 124 125 137 138 749 125 122 83 129 1939-January 129 February 128 March 129 April 130 May 132 June 132 July 131 August 133 September October 130 124 1 82 82 83 100 97 91 87 83 78 86 102 117 120 155 155 153 153 122 153 123 139 137 136 126 126 126 126 126 153 156 127 127 155 127 126 155 137 137 138 P165 p Preliminary. i Revised index from March 1936 (see BULLETIN for April 1937, p . 373). Sources— See BULLETIN for April 1937, p . 373, and October 1939, p . 943. SECURITY PRICES [Index numbers except as otherwise specified] Common stocks Bonds Year or month United States (average price) i (1926=100) France England (December (1913=100) 1921=100) Germany (average price) Number of issues. _ 60 1926.- 97.6 110.0 57.4 1929 1930. 1931 1932 1933. 1934 1935 1936 1937 1938 98.1 99.3 90.9 69.5 73.4 84.5 88.6 97.5 93.4 78.9 110.2 111.8 108.4 113.2 119.7 127.5 129.9 131.2 124.6 121.3 85.1 95.8 96.9 88.6 81.3 82.1 83.5 76.3 75.1 77.3 81.4 83.3 3 83.4 3 67.1 82.5 90.7 95.3 95.8 98.7 99.9 1938—September.. October November.. December... 78.7 81.8 82.1 81.1 118.4 118. 2 118.0 116.3 75.6 78.3 80.6 88.3 1939—January February March April May June July August September.. October 81.9 82.1 83.1 79.4 80.2 81.4 81.6 81.0 80.9 82.9 115.9 115.8 113.6 110.8 113.5 113.5 112.5 110.9 106.9 83.4 86.5 86.0 86.6 85.1 84.0 84.3 82.9 c 1 2 87 36 Netherlands 2 8 United States England France Germany Netherlands (1930=100) 100 420 278 300 329 100.0 100.0 100.0 100.0 100.0 104.3 104.1 94.8 105.3 113.4 107.8 109.1 4 101. 8 105.9 190.3 149.8 94.7 48.6 63.0 72.4 78.3 111.0 111.8 83.3 119.5 102.6 78.9 67.9 78.6 85.7 86.3 97.0 96.3 80.8 217.6 187.6 132.2 105.2 99.6 83.3 79.7 77.2 97.4 89.7 122.8 100.2 3 78.0 3 50.3 61.7 71.1 82.9 91.6 102.6 100.1 99.8 99.8 99.7 99.2 100.6 105.6 105.3 105.9 86.0 91.1 94.7 92.0 78.4 79.6 80.4 78.4 83.7 88.0 91.8 104.7 94.7 98.6 97.2 94.6 92.8 98.0 98.8 97.8 99.0 99.0 99.0 99.0 99.0 99.0 99.0 99.0 98.9 104. 3 102.1 100.9 95.2 98.0 96.3 94.4 92.6 79.6 91.8 90.1 91.7 81.9 83.1 86.0 86.1 86.3 92.4 95.3 78.0 77.5 77.1 75.1 77.0 76.6 75.8 75.3 72.0 94.0 100.0 97.9 97.9 103.0 98.3 100.4 94.0 95.3 96.1 94.4 94.9 94.1 92.5 91.7 C 93. 2 92.8 94.3 92.4 94.0 139 100 70 46 52 55 55 66 104 96 89! 3 91.6 89.3 88.6 92. 1 Corrected. Prices derived from average yields for 60 corporate bonds as published by Standard Statistics Co. Indexes of reciprocals of average yields. For old index, 1929-1936, 1929=100; average yield in base year was 4.57 per cent. For new index beginning January 1937, January-March 1937=100; average yield in base period was 3.39 per cent. 8 Exchange closed from July 13 to Sept. 2, 1931, and from Sept. 19, 1931, to Apr. 11, 1932. Index for 1931 represents average of months JanuaryJune: index for 1932 represents average of months May-December. • New index. See note 2. Sources.—See BULLETIN for February 1932, p. 121; June 1935, p. 394; April 1937, p. 373; July 1937, p. 698; and November 1937, p. 1172. FEDERAL RESERVE DIRECTORY 1150 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM MARRINER S. ECCLES, Chairman RONALD RANSOM, Vice Chairman M. S. SzYMCZAK CHESTER C. DAVIS ERNEST G. DRAPER JOHN K. MCKEB LAWRENCE CLAYTON, Assistant to the Chairman ELLIOTT THURSTON, Special Assistant to the Chairman CHESTER MORRILL, Secretary LISTON P. BETHEA, Assistant Secretary S. R. CARPENTER, Assistant Secretary J. C. NOELL, Assistant Secretary WALTER WYATT, General Counsel J. P. DREIBELBIS, Assistant General Counsel GEORGE B. VEST, Assistant General Counsel B. MAGRUDER WINGFIELD, Assistant General Counsel LEO H. PATJLGER, Chief, Division of Examinations R. F. LEONARD, Assistant Chief, Division of Examinations C. E. CAGLE, Assistant Chief, Division of Examinations E. A. GOLDENWEISER, Director, Division of Research and Statistics WOODLIEF THOMAS, Assistant Director, Division of Research and Statistics EDWARD L. SMEAD, Chief, Division of Bank Operations J. R. VAN FOSSEN, Assistant Chief, Division of Bank Operations J. E. HORBETT, Assistant Chief, Division of Bank Operations CARL E. PARRY, Chief, Division of Security Loans PHILIP E. BRADLEY, Assistant Chief, Division of Security Loans O. E. FOULK, Fiscal Agent JOSEPHINE E. LALLY, Deputy Fiscal Agent FEDERAL OPEN MARKET COMMITTEE FEDERAL ADVISORY COUNCIL MARRINER S. ECCLES, Chairman District No. 1 (BOSTON) THOMAS M. STEELE GEORGE L. HARRISON, Vice Chairman District No. 2 (NEW YORK) LEON FRASER CHESTER C. DAVIS ERNEST G. DRAPER M. J. FLEMING GEORGE H. HAMILTON HUGH LEACH WM. M C C . MARTIN JOHN K. MCKEE RONALD RANSOM M. S. SZYMCZAK District No. 3 (PHILADELPHIA) HOWARD A. LOEB, District No. 4 (CLEVELAND) T. J. DAVIS CHESTER MORRILL, Secretary S. R. CARPENTER, Assistant Secretary Vice-President District No. 5 (RICHMOND) ROBERT M. HANES District No. 6 (ATLANTA) EDWARD BALL District No. 7 (CHICAGO) EDWARD E. BROWN District No. 8 (ST. LOUIS) WALTER W. SMITH District No. 9 (MINNEAPOLIS) JOHN CROSBY President District No. 10 (KANSAS CITY) JOHN EVANS J. P. DREIBELBIS, Assistant General Counsel District No. 11 (DALLAS) R. E. HARDING E. A. GOLDENWEISER, Economist JOHN H. WILLIAMS, Associate Economist District No. 12 (SAN FRANCISCO)__.PAUL S. DICK WALTER WYATT, General Counsel ALLAN SPROUL, Manager of System Open Market Account 1151 WALTER LICHTENSTEIN, Secretary SENIOR OFFICERS OF FEDERAL RESERVE BANKS Chairman and Federal Reserve Agent Federal Reserve Bank of— President First Vice President Vice Presidents F. H. Curtiss_ R. A. Young New York__ Owen D. Young G. L. Harrison.. _ _ Allan Sproul PhiladelDhia T B McCabe J S Sinclair F J. Drinnen C A Mcllhenny 3 W. J. Davis E. C. Hill Cleveland G C Brainard M. J. Fleming F. J. Zurlinden W. H. Fletcher G. H. Wagner W. F. Taylor » Richmond... _ _. Robert Lassiter Hugh Leach J. S. Walden, Jr J. G. Fry G. H. Keesee i Atlanta F H Neely R. S. Parker W. S. McLarin, Jr. Chicago R. E. Wood i G. J. Schaller H. F Conniff M. H. Bryan C. S. Young W. H. Snyder» J. H. Dillard St Louis W T Nardin W. McC. Martin.. F. G. Hitt Minneapolis.._ _ _ W. C. Coffey 1 J N Peyton 0 S. Powell Kansas City R. B. Caldwell G. H. Hamilton... C. A. Worthington H. G. Leedy J. W. Helm 3 Dallas J. H. Merritt R R Gilbert E B Stroud R. B. Coleman W. J. Evans W. 0. Ford 2 San Francisco St George Holden l W. A. Day Ira Clerk W. M. Hale C. E. Earhart * R. B. West Boston i Deputy chairman. W. W. Paddock _ 2 W. Willett » _ __ H. P. Preston... Cashier. L. R. Rounds W. S. Logan J. H. Williams R. M. Gidney L. W. Knoke R. G. Rouse 0. M. Attebery C M . Stewart * H. I. Ziemer 3 E. W. Swanson 3 Also cashier. MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS Federal Reserve Bank of— New York: Buffalo Branch Cleveland: Cincinnati Branch Pittsburgh Branch Richmond: Baltimore Branch Charlotte Branch.__ Atlanta: Birmingham Branch Jacksonville Branch Nashville Branch. _. New Orleans Branch Chicago: Detroit Branch St. Louis: Little Rock Branch Louisville Branch Memphis Branch Managing director R. M. O'Hara _. B. J. Lazar _ P. A. Brown W. R. Milford W. T. Clements P. L. T. Beavers G. S. Vardeman, Jr. J. B. Fort, Jr. L. M. Clark _ _ R. H. Buss Federal Reserve Bank of— Minneapolis: Helena Branch Kansas City: Denver Branch Oklahoma City Branch Omaha Branch _ _ __ Dallas: El Paso Branch Houston Branch San Antonio Branch San Francisco: Los Angeles Branch _ Portland Branch. Salt Lake City Branch Seattle Branch.. _ _ __ _ Managing director R. E. Towle J. E. Olson C. E. Daniel L. H. Earhart J. L. Hermann W. D. Gentry M. Crump W. N. Ambrose D. L. Davis W. L. Partner C. R. Shaw A. F. Bailey F. D. Rash W. H. Glasgow SUBSCRIPTION PRICE OF BULLETIN The FEDERAL RESERVE BULLETIN is an official publication of the Board of Governors of the Federal Reserve System. The BULLETIN is issued monthly and is sent to member banks without charge. To others the subscription price, which covers the cost of paper and printing, is as follows: in the United States, Canada, Mexico, and insular possessions, $2.00 per year and 20 cents per single copy; elsewhere, $2.60 per year and 25 cents per single copy. 1152 INDEX TO VOLUME 25 Page Page Acceptances: Bankers': Outstanding 54, 130, 206, 314, 414, 508, 585, 664, 796, 906, 996, 1112 Buying rates 55, 131, 207, 315, 415, 509, 586, 665, 797, 907, 997, 1113 Discount rates, open market .56, 132, 208, 316, 416, 510, 587, 666, 798, 908, 998, 1114 Member bank holdings: All banks on call dates: Mar. 29, 1939 489 June 30, 1939 728 Monthly table 48, 124, 200 (See also Open market paper.) Africa. (See South Africa; West Africa.) Agricultural credit institutions. (See Farm credit agencies.) Albania: National Bank of: Condition 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1025, 1141 Discount rate 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Algeria: Decree approving convention between French Government and Bank of Algeria 976 Allen, P. R., reelected Class B Director, Federal Reserve Bank of Boston 7 Anthracite. (See Coal.) Argentina: Central Bank of: Annual report, 1938 1077-1094 Condition 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1025, 1141 Discount rate 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Gold reserves 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 Foreign exchange rates 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Gold movements to and from U. S. .46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Assets and liabilities. (See Condition statements.) Austin, R. L., retirement as Class C Director and Chairman and Federal Reserve Agent, Philadelphia 8 Australia: Bank of: Condition 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1025, 1141 Foreign exchange rates 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Gold movements to and from U.S.. .46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Gold production 75, 151, 227, 337, 435, 529, 607, 687, 819, 929, 1019, 1135 Austria: Foreign exchange rates 84, 160, 236, 346, 447, 541, 619 Automobiles. (See Transportation equipment.) Balance of international payments of United States: July, 1914-Dec, 1918 1043 1936-1937 31 1937-1938 975 Balance of trade of United States: Discussion of 92, 96, 551, 1048 Balance sheets. (See Condition statements.) Bank credit. (See Credit, Bank.) Bank debits. (See Debits to individual accounts.) Bank directorates, Interlocking: Board of Governors statement on 719 President's veto message on S. 2150 719 Regulation L, amended 719 Bank failures. (See Banks: Suspensions.) Bank for International Settlements: Annual report, 1938 746-772 Condition 81, 157, 233, 343, 445, 538, 616, 696, 828, 938, 1028, 1144 Gold reserves 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 Bank mergers. (See Banks: Consolidations, absorptions, etc.) Bank premises: Member banks: Dec. 31, 1938 264 Mar. 29, 1939 489 June 30, 1939 728 Bank supervision: "Problems of Banking and Bank Supervision" 97 Bankers' acceptances. (See Acceptances.) Bankers' balances: Discussion of 712-713 Member bank holdings: All banks on call dates: Dec. 31, 1938 264 Mar. 29, 1939 488 June 30, 1939 727 Monthly table 49, 125, 201, 309, 409, 503, 580, 659, 791, 901, 991, 1107 Reporting banks: All banks, N. Y. C. and outside N. Y. C, monthly and Wednesday figures. . . 50, 126, 202, 311, 411, 505, 582, 661, 793, 903, 993, 1109 By districts and for Chicago, Wednesday figures 52, 128, 204, 313, 413, 507, 584, 663, 795, 905, 995, 1111 Banking and financial legislation: Branch banking laws, Federal and State 851-870 Federal Reserve membership requirement for State insured banks repealed 559 Federal Reserve notes, Direct obligations of U. S. as collateral for, until June 30, 1941 637 Foreign. (See under name of country.) Gold Reserve Act of 1934, amended 638 Loans to executive officers of member banks extended 559 Neutrality Act of 1939: Financial transactions under 1054 1153 1154 INDEX TO VOLUME 25 Page Banking and financial legislation—Continued. Reconstruction Finance Corporation and related agencies continued 253-254 Trust Indenture Act of 1939, note on 851 Banking developments: Discussion of 243, 456 Banking funds: Discussion of 353, 709-714 Movement to U. S. from abroad: July-Sept., 1938 32-33 Oct.-Nov., 1938 184-185 1938 290-291 Description of tables 284-287 Monthly table 437, 531, 609, 689, 821, 931, 1021, 1137 Banking offices: Number of: 1933-1939, by classes 109, 477, 1065 Banks: Branches. (See Branch banks.) Consolidations, absorptions, etc.: 1938 changes 110 Jan.-Mar., 1939 changes 478 Jan.-Sept., 1939 changes 1066 Loans to, by member banks: All banks on call dates: Dec. 31, 1938 264 Mar. 29, 1939 489 June 30, 1939 728 Monthly table. . 48, 124, 200, 308, 408, 502, 579, 658, 790, 900, 990, 1106 Reporting banks: All banks, N. Y. C. and outside N. Y. C , monthly and Wednesday figures. . 5 0 , 126, 202, 310, 410, 504, 581, 660, 792, 902, 992, 1108 By districts and for Chicago, Wednesday figures .52, 128, 204, 312, 412, 506, 583, 662, 794, 904, 994, 1110 Loans to, by Reconstruction Finance Corporation 60, 136, 212, 320, 420, 514, 591, 670, 802, 912, 1002, 1118 Number of: Call dates: 1933-1939 109, 477, 1065 1938 changes 110 Jan.-Mar., 1939 changes 478 Jan.-Sept., 1939 changes 1066 Monthly table . 4 7 , 123, 199, 307, 407, 501, 578, 657, 789, 899, 989, 1105 Group banks: Dec. 31, 1938 480 Operating branches: Dec. 31, 1938, by States 479 Group banks, Dec. 31, 1938 480 Suspensions: Monthly table. . 4 6 , 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 (See also Federal Reserve banks; Member banks; National member banks; Nonmember banks; State banks; State member banks.) Banks for cooperatives: Loans outstanding 61, 137, 213, 321, 421, 515, 592, 671, 803, 913, 1003, 1119 Belgian Congo: Bank of: Condition 825, 935, 1025, 1141 Gold production 75, 151, 227, 337, 435, 529, 607, 687, 819, 929, 1019, 1135 Page Belgium: Foreign exchange rates 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Gold movements to and from U . S . 46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Money rates 81, 157, 233, 343, 445, 538, 616, 696, 828, 938, 1028, 1144 National Bank of: Annual report, 1938 279-283 Condition 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1025, 1141 Discount r a t e : Changes in 445, 539, 697 Monthly table . 8 2 , 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Gold reserves 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 Treasury gold reserves 606, 686, 818, 928, 1018, 1134 Belligerents: Credits to, regulations 961 Financial transactions under Neutrality Act '.1054 Foreign resources 1041-1043 Biddle, Francis, appointed Deputy Chairman, Federal Reserve Bank of Philadelphia 7 Bills: Bought in open market by Federal Reserve banks: All banks combined, end of month and Wednesday figures 38, 114, 190, 298, 398, 492, 569, 648, 780, 890, 980, 1096 Each bank, Wednesday figures. .40, 116,192, 300, 400, 494, 571, 650, 782, 892, 982, 1098 Discounted by Federal Reserve banks: All banks combined, end of month and Wednesday figures 38, 114, 190, 298, 398, 492, 569, 648, 780, 890, 980, 1096 Each bank, Wednesday figures 40, 116,192, 300, 400, 494, 571, 650, 782, 892, 982, 1098 Federal Reserve bank holdings: Maturity distribution . 3 9 , 115, 191, 299, 399, 493, 570, 649, 781, 891, 981, 1097 Payable by member banks. (See Borrowings.) Bituminous coal. (See Coal.) Board of Governors of Federal Reserve System: Members and officers 88, 164, 240, 350, 452, 546, 624, 704, 836, 946, 1036, 1151 Press statements: Advances to member and nonmember banks 840 Check clearing and collection 719 Interlocking bank directorates 719 Monetary measures and objectives. . . .363364, 461 Price stabilization 255-259, 461 Publications: Annual report, 1938 97 Federal Reserve System—Its Purposes and Functions 461 List of 37, 568 Member bank condition reports revised 22, 259-262 Monetary Measures and Objectives . . . 461 Problems of Banking and Bank Supervision 97 Stocks registered, Jan. 31, 1939 173 Bolivia: Central Bank of: Condition 78. 154, 230, 340, 441, 535, 613, 693, 825, 935, 1025, 1141 INDEX TO VOLUME 25 Page 1155 Page Brokers and dealers in securities—Continued. Bolivia—Continued. Loans to, by member banks—Continued. Central Bank of—Continued. Reporting banks—Continued. Discount rate 82, 158, 234, 344, N. Y. C, monthly and Wednes445, 539, 617, 697, 829, 939, 1029, 1145 day figures 50, 126, 202, 310, Bonds: 410, 504, 581, 660, 792, 902, 992, 1108 Collateral loans on. (Ruling.) 362 By districts and for Chicago, WedNew issues. (See Capital issues.) nesday figures 52, 128, 204, 312, Prices: 412, 506, 583, 662, 794, 904, 994, 1110 Discussion of 628-629 Margin accounts, Debit balances in. (See Principal countries 86, 162, 238, 348, Brokers' balances.) 449, 543, 621, 702, 833, 943, 1033, 1149 United States 57, 133, 209, 317, Broker's balances: Monthly table 54, 130, 206, 314, 417, 511, 588, 667, 799, 909, 999, 1115 414, 508, 585, 664, 796, 906, 996, 1112 United States Government. (See United Movement to U. S. from abroad: States Government securities.) July-Sept., 1938 33 Yields: Oct.-Nov., 1938 185 Charts 629, 840 1938 294 Discussion of 628-629, 840 Description of tables 284-287 Monthly and weekly figures 56, 132, 208, Monthly table 438, 532, 610, 690, 316, 416, 510, 587, 666, 798, 822, 932, 1022, 1138 908, 998, 1114 National summary 98, 175, Brooks, F. F., reelected Class A Director, Federal Reserve Bank of Cleveland 6 250, 556, 633, 958 contracts. (See Construction conBoots and shoes. (See Leather and leather prod- Building tracts.) ucts.) Building materials: Borrowings: Prices, Discussion of 953 Member banks: Wholesale price indexes 71, 147, 223, 331, All banks on call dates: 431, 525, 602, 681, 813, 923, 1013, 1129 Dec. 31, 1938 264 Bulgaria: Mar. 29, 1939 488 Foreign exchange rates 84, 160, 236, 346, June 30, 1939 727 447, 541, 619, 700, 831, 941, 1031, 1147 Monthlv table . 49, 125, 201, 309, 409, National Bank of: 503, 580, 659, 791, 901, 991, 1107 Condition 78, 154, 230, 340, Reporting banks: 441, 535, 613, 693, 825, 935, 1025, 1141 All banks, N. Y. C. and outside Discount rate 82, 158, 234, 344, N. Y. C, monthly and Wednes445, 539, 617, 697, 829, 939, 1029, 1145 day figures . .51,-127, 203, 311, 411, Gold reserves 74, 150, 226, 336, 505, 582, 661, 793, 903, 993, 1109 434, 528, 606, 686, 818, 928, 1018, 1134 By districts and for Chicago, WedBurke, E. S., Jr., retirement as Class C Director nesday figures 53, 129, 205, 313, 413, and Chairman and Federal Reserve Agent, Cleveland 8 507, 584, 663, 795, 905, 995, 1111 Business and credit conditions: Brainard, George C, designated Chairman and Discussion of 1, 91, 167, 243, 353, Federal Reserve Agent, Cleveland 7 455, 549, 627, 709, 839, 949, 1039, 1048 Branch banks: National summary 8, 97, 174, 249 1933-1939 109, 477,1065 357, 462, 555, 632, 715, 846, 957, 1050 1938, by States 479 Statistical summary 11, 100, 177, 252, 1938 changes 110 360, 465, 558, 635, 718, 849, 960, 1053 Jan.-Mar., 1939 changes 478 Jan.-Sept., 1939 changes 1066 Caldwell, R. B., designated Chairman and Federal Reserve Agent, Kansas City 7 Group bank branches: Dec. 31, 1938 480 Canada: Bank of: Laws, Federal and State 851-870 Annual report, 1938 392-395 Brazil: Condition 78, 154, 230, 340, Bank of: 441, 535, 613, 693, 825, 935, 1025, 1141 Condition 78 Discount rates 82, 158, 234, 344, Gold reserves 74, 150, 226, 336, 445, 539, 617, 697, 829, 939. 1029. 1145 434, 528, 606, 686, 818, 928, 1018, 1134 Gold reserves 74, 150, 226, 336, Foreign exchange rates 84, 160, 236, 346, 434, 528, 606, 686, 818, 928, 1018, 1134 447, 541, 619, 700, 831, 941, 1031,1147 Commercial banks . 83. 159. 235, 345, Breithut, R. C 265, 468 446, 540, 618, 698, 830, 940, 1030, 1146 British India. (See India, British.) Foreign exchange rates 84, 160, 236, 346, Brokers and dealers in securities: 447, 541, 619, 700, 831, 941, 1031, 1147 Loans to, by member banks: Gold movements to and from U. S. 46, 122, 198, All banks on call dates: 306, 406, 500, 577, 656, 788, 898, 988, 1104 Gold production 75, 151, 227, 337, Mar. 29, 1939 489 435, 529, 607, 687, 819, 929, 1019, 1135 June 30, 1939 728 Wholesale price indexes . 85, 161, 237, 347, Monthly table 48, 124, 200, 308, 448, 542, 620, 701, 832, 942, 1032, 1148 408, 502, 579, 658, 790, 900, 990, 1106 Cannon, Harry L., elected Class B Director, FedReporting banks: eral Reserve Bank of Philadelphia 7 All banks, N. Y. C. and outside 1156 INDEX TO VOLUME 25 Page Page Capital: Federal Reserve banks 40, 116, 192, 300, 400, 494, 571, 650, 782, 892, 982, 1098 Member banks: Dec. 31, 1938 264 Mar. 29, 1939 489 June 30, 1939 728 Capital accounts: Member banks: All banks on call dates: Dec. 31, 1938 264 Mar. 29,1939 488 June 30, 1939 727 Monthly table 309, 409, 503, 580, 659, 791, 901, 991, 1107 Reporting banks: All banks, N. Y. C. and outside N. Y. C, monthly and Wednesday figures 51, 127, 203, 311, 411, 505, 582, 661, 793, 903, 993, 1109 By districts and for Chicago, Wednesday figures 53, 129, 205, 313, 413, 507, 584, 663, 795, 905, 995, 1111 Capital issues: Discussion of 172, 630 Monthly figures 57, 133, 209, 317, 417, 511, 588, 667, 799, 909, 999, 1115 Capital movement to United States: Discussion of. . . .92-96, 247, 455, 549, 1039-1043 Statistics: July-Sept., 1938 32-34 Oct.-Nov., 1938 184-186 1938 288-289 Description of tables 284-287 Monthly table 437, 531, 609, 689, 821, 931, 1021, 1137 Capital movements, International: Discussion of 92-96, 1039 Car loadings, Freight. (See Freight-car loadings.) Cash: Member bank holdings: All banks on call dates: Dec. 31, 1938 264 Mar. 29, 1939 488 June 30, 1939 727 Monthly table . . 4 9 , 125, 201, 309, 409, 503, 580, 659, 791, 901, 991, 1107 Reporting banks: All banks, N. Y. C. and outside N. Y. C , monthly and Wednesday figures . . 50, 126, 202, 311, 411, 505, 582, 661, 793, 903, 993, 1109 By districts and for Chicago, Wednesday figures 52, 128, 204, 313, 413, 507, 584, 663, 795, 905, 995, 1111 Cement: Factory employment index: Adjusted 65, 141, 217, 325, 425, 519, 596, 675, 807, 917, 1007, 1123 Unadjusted 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Factory payrolls index 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Production index: Adjusted 63, 139, 215, 323, 423, 517, 594, 673, 805, 915, 1005, 1121 Unadjusted 64, 140, 216, 324, 424, 518, 595, 674, 806, 916, 1006, 1122 Wholesale price index 71, 147, 223, 331, 431, 525, 602, 681, 813, 923, 1013, 1129 Central America: Gold movements to and from U. S.. .46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Central banks. (See under name of country, e.g. France: Bank of.) Central reserve city member banks: Condition on call dates: Dec. 31, 1938 264 Mar. 29, 1939 488-489 June 30, 1939 727-728 Monthly table 48, 124, 200, 308, 408, 502, 579, 658, 790, 900, 990, 1106 Deposits 44, 120, 196, 304, 404, 498, 575, 654, 786, 896, 986, 1102 Reserves: Monthly and weekly figures 44, 120, 196, 304, 404, 498, 575, 654, 786, 896, 986, 1102 Certificates of deposit: Payment or renewal of time certificates maturing on Sunday. (Ruling.) 850 Charts: American investment abroad and foreign investment in U. S. 95 Bond yields 629, 840 Chart book statistics . 111-112, 224, 332-333, 432, 526, 603-604, 683, 815, 925, 1015, 1131-1132 Commercial loan rates at banks in principal cities 963 Condition of member banks by classes of banks 712 Construction contracts awarded . 8, 170, 249, 459 Department store sales and stocks. . 171, 463, 846 Deposit behavior study 269, 469 Distribution of commercial loans according to interest rates charged 17, 725 Earnings and expenses of member banks 373 Excess reserves of member banks 98, 358 Exchange quotations for leading countries . 353 Exchange rates in New York 1040 Exports of U. S. merchandise 552 Factors of gain and losses of reserve funds . 711 Factory employment 9, 98,174, 250, 458, 463, 632 Factory employment, hours and earnings 458, 463 Foreign trade of the United States . . 552, 1048 Freight-car loadings 556, 633, 715, 958 Industrial production 8, 20, 97, 169, 174, 249, 456, 462, 555, 632, 715, 844, 846 Industrial production, United Kingdom and France 1046 Interest-bearing debt of U. S. Government. . 2 Investments of country banks 245 Manufacturing production 357, 1050 Member bank reserves and related items 10, 99, 176, 251, 359, 464, 557, 634, 716, 717, 848, 959, 1052 Member banks in 101 leading cities 9, 175, 244, 358, 556, 633, 958, 1051 Money in circulation 355 Money rates in New York City 175, 250, 463, 847, 1051 National income payments 168, 455 Resources of Foreign Monetary Authorities with Federal Reserve Banks 549 Stock prices 629, 841 Wholesale prices 97, 358, 460, 556, 716, 843, 847, 950, 951, 958, 1051 Yields on U. S. Government securities. . . . 3 Check clearing and collection: Regulation J, revised 719-721 INDEX TO VOLUME 25 Page Chemicals: Factory employment index: Adjusted 65, 141, 217, 325, 425, 519, 596, 675, 807, 917, 1007, 1123 Unadjusted 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Factory payrolls index. . .67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 951 Prices, Discussion of Wholesale price indexes .71, 147, 223, 331, 431, 525, 602, 681, 813, 923, 1013, 1129 Chile: Central Bank of: Condition. . .78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1026, 1142 Discount rate. . . 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Gold reserves. . . . 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 Foreign exchange rates. . .84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Gold movements to and from U. S. 46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Gold production 75, 151, 227, 337, 435, 529, 1135 607, 687, 819, 929, 1019, China: Central Bank of: Gold reserves . 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 Foreign exchange rates .84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Gold movements to and from U. S. 46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Cigars and cigarettes. (See Tobacco: Manufactures.) Closed banks. (See Banks: Suspensions.) Coal: Freight-car loadings indexes .70, 146, 222, 330, 430, 524, 601, 680, 812, 922, 1012, 1128 Production indexes: Adjusted 63, 139, 215, 323, 423, 517, 594, 673, 805, 915, 1005, 1121 Unadjusted . . 64, 140, 216, 324, 424, 518, 595, 674, 806, 916, 1006, 1122 Wholesale price indexes . . 71, 147, 223, 331, 431, 525, 602, 681, 813, 923, 1013, 1129 Coffey, W. C , appointed Deputy Chairman, Federal Reserve Bank of Minneapolis 7 Coin: 499, Circulation 45, 121, 197, 305, 405, 576, 655, 787, 897, 987, 1103 Coke: Freight-car loadings indexes 70, 146, 222, 330, 430, 524, 601, 680, 812, 922, 1012, 1128 Production indexes: 63, 139, 215, 323, 423, 517, Adjusted 594, 673, 805, 915, 1005, 1121 64, 140, 216, 324, 424, 518, Unadjusted 595, 674, 806, 916, 1006, 1122 Collier, Raymond J. 963 Colombia: Bank of: Condition . . . 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1026, 1142 Discount rate. 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Gold reserves. 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 Foreign exchange rates 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Gold movements to and from U. S. 46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 1157 Page Colombia—Continued. Gold production. . . .75, 151, 227, 337, 435, 529, 607, 687, 819, 929, 1019, 1135 Commercial failures. . .69, 145, 221, 329, 429, 523, 600, 679, 811, 921, 1011, 1127 Commercial, industrial and agricultural loans: Commercial loans, Discussion of increase in. 841 Member banks: All banks on call dates: Mar. 29, 1939 489 June 30, 1939 728 Monthly table 308, 408, 502, 579, 658, 790, 900, 990, 1106 Reporting banks: All banks, N. Y. C. and outside N. Y. C, monthly and Wednesday figures . .50, 126, 202, 310, 410, 504, 581, 660, 792, 902, 992, 1108 By districts and for Chicago, Wednesday figures . 52, 128, 204, 312, 412, 506, 583, 662, 794, 904, 994, 1110 Term loans to commercial and industrial concerns 560-562 Commercial paper: Discount rates, open market 56, 132, 208, 316, 416, 510, 587, 666, 798, 908, 998, 1114 Member bank holdings: All banks on call dates: Mar. 29, 1939 489 June 30, 1939 728 Monthly table 48, 124, 200 Outstanding 54, 130, 206, 314, 414, 508, 585, 664, 796, 906, 996, 1112 (See also Open market paper.) Commodity Credit Corporation: Act continuing functions 254 Assets and liabilities . . 60, 136, 212, 320, 420, 514, 591, 670, 802, 912, 1002, 1118 Guaranteed obligations outstanding . . . 58, 134, 210, 318, 418, 512, 589, 668, 800, 910, 1000, 1116 Summary of operations, 1938 365-371 Commodity prices. (See Prices.) Comptroller of the Currency: 22 Condition report form revised. Condition statements: All banks in U. S.: 24-28 Sept. 28, 1938 382-386 Dec. 31, 1938 563-567 Mar. 29, 1939 970-974 June 30, 1939 81, 157. Bank for International Settlements 233, 343, 445, 538, 616, 696, 828, 938, 1028, 1144 Federal Reserve banks: All banks combined, end of month and Wednesday figures 39, 115, 191, 299, 399, 493, 570, 649, 781, 891, 981, 1097 Each bank, Wednesday figures . 40, 116, 192, 300, 400, 494, 571, 650, 782, 892, 982, 1098 Foreign central banks 77, 153, 229, 339, 440, 534, 612, 692, 824, 934, 1024, 1140 Foreign commercial banks 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Governmental corporation and credit agencies: Monthly table 60, 136, 212, 320, 420, 514, 591, 670, 802, 912, 1002, 1118 Summary of operations 365-371 Insured commercial banks: Dec. 31, 1938 . . . . 381 June 30, 1939 877 1158 INDEX TO VOLUME 25 Page Condition statements—Continued. Member banks: All banks on call dates: Dec. 31, 1938 264, Mar. 29, 1939 488-489 June 30, 1939 727-728 Monthly table. . .48, 124, 200, 308, '408, 502, 579, 658, 790, 900, 990, 1106 Selected dates, 1933-1938 263 Chart 712 Reporting banks: All banks, N. Y. C. and outside N. Y. C, monthly and Wednesday figures . . 50, 126, 202. 310, 410, 504, 581, 660, 792, 902, 992, 1108 By districts and for Chicago, Wednesday figures 52, 128, 204, 312, 412, 506, 583, 662, 794, 904, 994, 1110 Revised form 22, 259-262 Consolidations, absorptions, etc. (See Banks: Consolidations, absorptions.) Construction contracts awarded, Value of: By types of construction and financing, and by districts 69, 145, 221, 329, 429, 523, 600, 679, 811, 921, 1011, 1127 Charts 8, 170, 249, 459 Discussion of 169, 455, 458-459, 949, 955 Indexes 62, 138, 214, 322, 422, 516, 593, 672, 804, 914, 1004, 1120 National summary. . 8, 98, 174, 249, 357, 462, 555, 632, 715, 846, 957, 1050 Corn crop reports 72, 682, 814, 924, 1014, 1130 Corporations and credit agencies, Governmental. (See Governmental corporations and credit agencies.) Cost of living: Indexes, principal countries 86, 162, 238, 348, 449, 543, 621, 702, 833, 943, 1033, 1149 Cotton: Crop reports 72, 682, 814, 924, 1014, 1130 Manufactures. (See Textiles.) Country member banks: Condition on call dates: Dec. 31, 1938 264 Mar. 29, 1939 488-489 June 30, 1939 727-728 Monthly table. . 48, 124, 200, 308, 408, 502, 579, 658, 790, 900, 990, 1106 Deposits: Monthly figures 44, 120, 196, 304, 404, 498, 575, 654, 786, 896, 986, 1102 Reserves: Monthly and weekly figures . 44, 120, 196, 304, 404, 498, 575, 654, 786, 896, 986, 1102 Cozzo, J. B., appointed Class C Director, Federal Reserve Bank of Dallas 554 Crabbs, G. D., reelected Class B Director, Federal Reserve Bank of Cleveland 7 Credit, Bank: Federal Reserve: End of month and Wednesday figures, 38, 114, 190, 298, 398, 492, 569, 648, 780, 890, 980, 1096 Monthly and yearly averages of daily figures. .11, 100, 177, 252, 360, 465, 558, 635, 718, 849, 960, 1053 Member banks: Discussion of 171, 243-246, 354, 456, 631, 709-714 National summary 9, 98, 175, 250, 358, 462, 556, 633, 716, 847, 958, 1051 Page Credit agencies, Governmental. (See Governmental corporations and credit agencies.) Credit control: Board of Governors statement on Monetary measures and objectives 363-364, 461 Credit union notes: Eligibility for discount by F. R. banks. (Ruling.) 361 Crops: National summary 633, 716, 847 Reports, by districts 72, 682, 814, 924, 1014, 1130 Cuba: Banking and financial legislation: June, 1939. Stabilization fund established 742 July, 1939. Settlement in pesos of obligations contracted in U. S. dollars ; 744 Foreign exchange rates 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Currency circulation. (See Money in circulation.) Currie, Lauchlin B. : Appointed Administrative Assistant to President of United States 631 Deposit behavior studies 178, 871 Curtiss, F. H.: Reappointed Class C Director, Federal Reserve Bank of Boston 7 Redesignated Chairman and Federal Reserve Agent, Boston 7 Customers' debit balances of Stock Exchange firms. (See Brokers' balances.) Customers' loans, Rates on. (See Interest rates: Charged customers by banks; Interest rates: Commercial loan rates.) Czechoslovakia: Foreign exchange r a t e s . . . 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 National Bank of: Condition. . .78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1026, 1142 Discount rates. . 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Gold reserves 74, 150, 226, 336, 434, 528, 606, 818, 928, 1018, 1134 Danzig: Bank of: Condition 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1026, 1142 Discount rate 82,158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Debits to individual accounts: Monthly table 46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Debt, U. S. Government. (See Treasury finance: Public debt.) Deficit, U. S. Treasury. (See Treasury finance: Deficit.) Denmark: Foreign exchange rates ... 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 National Bank of: Condition 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1026, 1142 Discount rate: Changes in 234, 939, 1029 Monthlv table 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Gold reserves 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 INDEX TO VOLUME 25 Page Dennison, Henry S., reappointed Deputy Chairman, Federal Reserve Bank of Boston 7 Department store sales and stocks: Charts 171, 463, 846 Discussion of 170, 949 Index of sales (value) : Monthly figures 70, 146, 222, 330, 430, 524, 601, 680, 812, 922, 10.12, 1128 Yearly and monthly figures . 62, 138, 214, 322, 422, 516, 593, 672, 804, 914, 1004, 1120 Index of stocks (value) : Monthly figures . 7 0 , 146, 222, 330, 430, 524, 601, 680, 812, 922, 1012, 1128 National summary 9, 98, 174, 250, 357, 463, 556, 632, 716, 846, 957, 1050 Deposits: All banks in U. S.: Call dates: Sept. 28, 1938 24-28 Dec. 31, 1938 382-386 Mar. 29, 1939 563-567 June 30, 1939 970-974 Monthly table . .47, 123, 199, 307, 407, 501, 578, 657, 789, 899, 989, 1105 Behavior study: 178-183, 265-270, 468-476 Analysis by size of accounts 178-183 Analysis by type of deposit holder. . 265-270 Charts: Movement of deposits prior to suspension 469 Percentage reductions in demand deposits, classified 269 Demand deposit accounts, Changes in number 476 Location of banks supplying data 179 Scope of data 178 Summary of results 178 Timing of deposit reductions 468-476 Demand: Distribution by economic classes of depositors, 1933, 1935 and 1936 871-874 Federal Reserve banks: All banks combined, end of month and Wednesdav figures 39, 115, 191, 299, 399, 493, 570, 649, 781, 891, 981, 1097 Each bank, Wednesday figures 40, 116, 192, 300, 400, 494, 571, 650, 782, 892, 982, 1098 Group banks, Dec. 31, 1938 480 Insurance of. (See Insurance of deposits.) Insured: survey, Sept. 21, 1939 101-104 Insured commercial banks: Dec. 31, 1938 381 June 30, 1939 877 Interest on. (See Interest on deposits; Interest rates.) Member banks: All banks on call dates: Dec. 31, 1938 264 Mar. 29, 1939 488 June 30, 1939 727 Monthly table . 49, 125, 201, 309, 409, 503, 580, 659, 791, 901, 991, 1107 Charts 244, 712 Classes of banks . 44, 120, 196, 304, 404, 498, 575, 654, 786, 896, 986, 1102 Discussion of 456, 631, 709, 713 Larger and smaller centers . . . . 44, 120, 196, 304, 404, 498, 575, 654, 786, 896. 986, 1102 1159 Page Deposits—Continued. Member banks—Continued. Reporting banks: All banks, N. Y. C. and outside N. Y. C, monthly and Wednesday figures 51, 127, 203, 311, 411, 505, 582, 661, 793, 903, 993, 1109 By districts and for Chicago, Wednesday figures 53, 129, 205, 313, 413, 507, 584, 663, 795, 905, 995, 1111 Mutual savings banks: Sept. 28, 1938 28 Dec. 31, 1938 386 Mar. 29, 1939 567 June 30, 1939 974 National member banks: Sept. 28, 1938 26 Dec. 31, 1938 384 Mar. 29, 1939 565 June 30, 1939 972 Nonmember deposits in Federal Reserve banks: End of month and Wednesday figures . 38, 114, 190, 298, 398, 492, 569, 648, 780, 890, 980, 1096 Personal loans: Funds for retiring personal loans as deposits. (Ruling.) 637 Postal Savings System. (See Postal Savings deposits.) Private banks: Sept. 28, 1938 28 Dec. 31, 1938 386 Mar. 29, 1939 567 June 30, 1939 974 Reserves required against. (See Reserve requirements.) Savings: Payment of interest on. (See Interest on deposits.) State banks: Sept. 28, 1938 27 Dec. 31, 1938 385 Mar. 29, 1939 566 June 30, 1939 973 Suspended banks: Monthly table 46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Time: Distribution by economic classes of depositors, 1933, 1935 and 1936 873 Directorates, Interlocking. (See Bank directorates, Interlocking.) Discount rates: Federal Reserve banks: Discussion of 840 Monthly table 55, 131, 207, 315, 415, 509, 586, 665, 797, 907, 997, 1113 Foreign central banks: Prevailing rates 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Discounts and advances: Federal Reserve banks for member banks: Board of Governors statement on 840 Credit union notes. (Ruling.) 361 Regulation G repealed 361 Distribution: National summary 9,98, 174, 250, 357, 463, 556, 632, 716, 846, 957, 1050 Dividends: Federal Reserve banks: Jan.-June, 1939 640 1160 INDEX TO VOLUME 25 Page Dividends—Continued. Member banks: 1938 372-379 Jan.-June, 1939 875 Dollar, Weight of: Act extending powers relating to alteration of 638 Durable goods: Estimated expenditures for new durable goods, 1919-1938 731-736 Factory employment index: Adjusted 65, 141, 217, 325, 425, 519, 595, 675, 807, 917, 1007, 1123 Unadjusted 67, 143, 219, 327, 427, 521, 598, 677, 908, 919, 1009, 1125 Factory payrolls index 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Prices, Discussion of. . . 953 Production index: Adjusted: 1919-1938 21 Monthly table 139, 215, 323, 423, 517, 594, 673, 805, 915, 1005, 1121 Discussion of 20 Unadjusted: 1923-1938 21 Monthly table 140, 216, 324, 424, 518, 595, 674, 806, 916, 1006, 1122 Earmarked gold. (See Gold: Earmarked.) Earnings and expenses: Federal Reserve banks: Jan.-June, 1939 640 Member banks: 1938 and 1937 372-379 By classes of banks 374 By districts 375-377 By six-month periods during 1938 378 Discussion 372 Jan.-June, 1939 874-875 Chart 373 Operating ratios, 1938: By size groups and geographic divisions 481-486 Eccles, Marriner S.: Introductory remarks at ceremony on 25th anniversary of signing of Federal Reserve Act 13 Ecuador: Central Bank of: Condition 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1026, 1142 Discount rate 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Gold movements to and from U. S.. . . 46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Egypt: Foreign exchange rates 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 National Bank of: Condition 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1026, 1142 Gold reserves 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 El Salvador: Central Reserve Bank of: Condition . 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1026, 1142 Discount rate 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Page Employment, Factory: Charts 9, 98, 174, 250, 458, 463, 632 Discussion of 168, 457 Indexes: Adjusted: By industries, monthly figures. . 65, 141, 217, 325, 425, 519, 596, 675, 807, 917, 1007, 1123 Total, monthly figures 62, 138, 214, 322, 422, 516, 593, 672, 804, 914, 1004, 1120 Unadjusted: By industries, monthly figures. . 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Total, yearly and monthly figures. . 62, 138, 214, 322, 422, 516, 593, 672, 804, 914, 1004, 1120 National summary 9, 98, 174, 249, 462, 556, 632, 715, 1050 England. (See United Kingdom.) Estonia: Bank of: Condition 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1026, 1142 Discount rate 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Exchange stabilization funds: Gold reserves 606, 686, 818, 928, 1018, 1134 Executive officers of member banks: Definition of "Executive officer" changed. Regulation O, amended 636 Loans to: Public act extending period 559 Expenditures, U. S. Treasury. (See Treasury finance: Expenditures.) Expenses. (See Earnings and expenses.) Export-Import Bank: Act continuing functions 254 Loans outstanding, Dec. 31, 1938 365, 371 Exports. (See Foreign trade.) Factory employment. (See Employment, Factory.) Failures, Bank. (See Banks: Suspensions.) Failures, Commercial. (See Commercial failures.) Farm Credit Administration: Banks and corporations: Assets and liabilities. ... 60, 136, 212, 320, 420, 514, 591, 670, 802, 912, 1002, 1118 Loans and discounts outstanding, by institutions 61, 137, 213, 321, 421, 515, 592, 671, 803, 913, 1003, 1119 Summary of operations of institutions under, 1938 365-370 (See also Governmental corporations and credit agencies.) Farm credit agencies: Assets and liabilities 60, 136, 212, 320, 420, 514, 591, 670, 802, 912, 1002, 1118 Summary of operations, 1938 365-371 Farm mortgage agencies: Assets and liabilities 60, 136, 212, 320, 420, 514, 591, 670, 802, 912, 1002, 1118 Summary of operations, 1938 365-371 Farm products: Wholesale price indexes: Principal countries 85, 161, 237, 347, 448, 542, 620, 701, 832, 942, 1032, 1148 United States 71, 147, 223, 331, 431, 525, 602, 681, 813, 923, 1013, 1129 Farm Security Administration: Summary of operations, 1938 370-371 INDEX TO VOLUME 25 1161 Page Federal Advisory Council: Meeting 172 Members 88, 164, 240, 350, 452, 546, 624, 704, 836, 946, 1036, 1151 Federal Deposit Insurance Corporation: Condition report form revised 22 Deposits covered: survey, Sept. 21, 1938 101-104 Federal Reserve membership requirement for State insured banks repealed 559 Federal Farm Mortgage Corporation: Guaranteed obligations outstanding . 5 8 , 134, 210, 318, 418, 512, 589, 668, 800, 910, 1000, 1116 Summary of operations, 1938 369-370 Federal Home Loan Bank Board: Loans outstanding, by' institutions 61, 137, 213, 321, 421, 515, 592, 671, 803, 913, 1003, 1119 Summary of operations of institutions under, 1938 368 (See also Governmental corporations and credit agencies.) Federal Home Loan Banks: Loans to members 61, 137, 213, 321, 421, 515, 592, 671, 803, 913, 1003, 1119 Federal Housing Administration: Summary of operations, 1938 369 Federal intermediate credit banks: Loans and discounts outstanding. .61, 137, 213, 321, 421, 515, 592, 671, 803, 913, 1003, 1119 Federal land banks and Land Bank Commissioner: Loans outstanding 61, 137, 213, 321, 421, 515, 592, 671, 803, 913, 1003, 1119 Summary of operations, 1938 366-370 Federal National Mortgage Association: Summary of operations, 1938 365, 368 Federal Open Market Committee: Members and officers 88, 164, 240, 350, 452, 546, 624, 704, 836, 946, 1036, 1151 Policy statement 6 Statement on reduction of holdings of Treasury bills 630 Federal Reserve Act: Amendments, 76th Congress: Federal Reserve membership requirement for State insured banks repealed 559 Loans to executive officers of member banks extended 559 Ceremony on 25th Anniversary of the signing of 13-16 Federal Reserve Agents: Accounts. (See Federal Reserve notes: Agents' accounts.) Appointments. (See Federal Reserve banks: Chairmen and Federal Reserve Agents.) Federal Reserve bank notes: Circulation 45, 121, 197, 305, 405, 499, 576, 655, 787, 897, 987, 1103 Federal Reserve banks: Branches, Managing directors of 89, 165, 241, 351, 453, 547, 625, 705, 837, 947, 1037, 1152 Chairmen and Federal Reserve Agents: Designation of 7 Retirement of 8 Deputy Chairmen, appointments 7 Directors: Class A and B, election of 6 Class C, appointments 7, 248, 554, 714 Federal Reserve banks—Continued. Earnings and expenses: Jan.-June, 1939 640 Officers 89, 165, 241, 351, 453, 547, 625, 705, 837, 947, 1037, 1152 Presidents: Death of B. A. McKinney, Dallas 356 Death of Oscar Newton, Atlanta 172 R. R. Gilbert, appointed President, Dallas 356 Robert S. Parker, appointed President, Atlanta . . . 173 Vice Presidents: E. B. Stroud appointed First Vice President, Federal Reserve Bank of Dallas 554 W. S. McLarin, Jr., appointed First Vice President, Federal Reserve Bank of Atlanta 956 Federal Reserve chart book: Changes in member bank series 332, 1015 Statistics 111-112, 224, 333, 432, 526, 603-604, 683, 815, 925, 1015, 1131-1132 Federal Reserve directory 88, 164, 240, 350, 452, 546, 624, 704, 836, 946, 1036, 1151 Federal Reserve districts: Map showing districts on back cover of each bulletin. Federal Reserve notes: Agents' accounts 43, 119, 195, 303, 403, 497, 574, 653, 785, 895, 985, 1101 Circulation: Actual: All banks combined, end of month and Wednesday figures . . . 39, 115, 191, 299, 399, 493, 570, 649, 781, 891, 981, 1097 Each bank, Wednesday figures ... 43, 119, 195, 303, 403, 497, 574, 653, 785, 895, 985, 1101 Outside Treasury and Federal Reserve banks, end of month figures. .45, 121, 197, 305, 405, 499, 576, 655, 787, 897, 987, 1103 Collateral security: Direct obligations of U. S. may be used as, until June 30, 1941 ' 637 Wednesday figures 43, 119, 195, 303, 403, 497, 574, 653, 785, 895, 985, 1101 Redemption fund: All banks combined, end of month and Wednesday figures 39, 115, 191, 299, 399, 493, 570, 649, 781, 891, 981, 1097 Each bank, Wednesday figures . . 40, 116, 192, 300, 400, 494, 571, 650, 782, 892, 982, 1098 Federal Reserve System: State bank membership: Membership requirement for State insured banks repealed 559 Regulation H, revised 1054-1064 "Federal Reserve System—Its Purposes and Functions" 461 Federal Savings and Loan Associations: Mortgage loans 61, 137, 213, 321, 421, 515, 592, 671, 803, 913, 1003, 1119 Fiduciary powers of national banks. (See Trust powers of national banks.) Financial conditions. (See Business and credit conditions.) Financial legislation. (See Banking and financial legislation.) 1162 INDEX TO VOLUME 25 Page Finland: Bank of: Condition 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1026, 1142 Discount rate 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Foreign exchange rates 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Floating money, Discussion of 93-96 Food and food products: Factory employment index: Adjusted • 65, 141, 217, 325, 425, 519, 596, 675, 807, 917, 1007, 1123 Unadjusted 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Factory payrolls index 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Prices, Discussion of 954 Production indexes: Adjusted 63, 139, 215, 323, 423, 517, 594, 673, 805, 915, 1005, 1121 Unadjusted 64, 140, 216, 324, 424, 518, 595, 674, 806, 916, 1006, 1122 Retail price index, principal countries 86, 162, 238, 348, 449, 543, 621, 702, 833, 943, 1033, 1149 Wholesale price indexes: Principal countries 85, 161, 237, 347, 448, 542, 620, 701, 832, 942, 1032, 1148 United States 71, 147, 223, 331, 431, 525, 602, 681, 813, 923, 1013, 1129 Forbes, Allan, reelected Class A Director, Federal Reserve Bank of Boston 6 Foreign banks: Central banks: Resources in United States: Chart of 549 Discussion of 549-551 (See also France, Bank of; etc.) Commercial banks, condition. .82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Deposits of, held by Federal Reserve banks: All banks combined, end of month and Wednesday figures 39, 115, 191, 299, 399, 493, 570, 649, 781, 891, 981, 1097 Each bank, Wednesday figures, . 40,116,192, 300, 400, 494, 571, 650, 782, 892, 982, 1098 Deposits of, held by member banks: All banks on call dates: Dec. 31, 1938 264 Mar. 29, 1939 488 June 30, 1939 727 Monthly table 49, 125, 201, 309, 409, 503, 580, 659, 791, 901, 991, 1107 Discussion of 711, 842 Reporting banks: All banks, N. Y. C. and outside N. Y. C, monthly and Wednesday figures 51, 127, 203, 311, 411, 505, 582, 661, 793, 903, 993, 1109 By districts and for Chicago, Wednesday figures 53, 129, 205, 313, 413, 507, 584, 663, 795, 905, 995, 1111 Foreign exchange: Rates: Chart 353, 1040 Discussion of ' 842, 1039-1041 Monthly table 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Regulations: France 1041 United Kingdom 1039-1041 Page Foreign trade of United States: Chart 552, 1047 Discussion of 551-552, 955, 1048 Forest products: Freight-car loadings indexes. . 70, 146, 222, 330, 430, 524, 601, 680, 812, 922, 1012, 1128 France: Bank of: Annual report, 1938 272-278 Condition 77, 153, 229, 339, 440, 534, 612, 692, 824, 934, 1024, 1140 Discount rate: Changes in 82, 158 Monthly table 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Gold reserves 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 Banking and financial legislation: Sept. 1, 1939. Decree and conventions. Issuance of 5, 10 and 20 franc notes to replace small coins. Gold reserve requirement of Bank of France suspended. Conventions between Government and Bank of France and Bank of Algeria approved 976 Nov. 12, 1939. Convention and decree. Gold revalued. Advances to Government increased 29 Commercial banks 83, 159, 235, 345, 446, 540, 618, 698, 830, 940, 1030, 1146 Cost of living index 86, 162, 238, 348, 449, 543, 621, 702, 833, 943, 1033, 1149 Economic developments, Discussion of 1047 Exchange Stabilization Fund: Gold reserves . 606, 686, 818, 928, 1018, 1134 Financial conditions, Discussion of 94 Foreign exchange rates 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Foreign exchange regulations 1041 Gold movements to and from U. S.. .46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Money rates 81, 157, 233, 343, 445, 538, 616, 696, 838, 938, 1028, 1144 Retail food price index 86, 162, 238, 348, 449, 543, 621, 702, 833, 943, 1033, 1149 Security prices 86, 162, 238, 348, 449, 543, 621, 702, 833, 943, 1933, 1149 Wholesale price indexes 85, 161, 237, 347, 448, 542, 620, 701, 832, 942, 1032, 1148 Freight-car loadings : Charts 556, 633, 715, 958 Indexes: By classes 70, 146, 222, 330, 430, 524, 601, 680, 812, 922, 1012, 1128 Total 62, 138, 214, 322, 422, 516, 593, 672, 804, 914, 1004, 1120 National summary 9, 98, 174, 250, 357, 463, 556, 633, 716, 846, 957, 1050 Fuel and lighting materials: Prices, Discussion of 954 Wholesale price indexes 71, 147, 223, 331, 431, 525, 602, 681, 813, 923, 1013, 1129 Fuels, Manufactured: Production indexes: Adjusted 63 Unadjusted 64 Geery, W. B., retirement as Class C Director and Chairman and Federal Reserve Agent, Minneapolis 8 General fund balance, U. S. Treasury. (See Treasury finance: General fund balance.) INDEX TO VOLUME 25 Page George, E. T., reelected Class B Director, Federal Reserve Bank of Atlanta 7 Germany: Banking and financial legislation: June 15, 1939. New German Reichsbank law 737 Commercial banks 83, 159, 235, 345, 446, 540, 618, 698, 830, 940, 1030, 1146 Cost of living index 86, 162, 238, 348, 449, 543, 621, 702, 833, 943, 1033, 1149 Foreign exchange rates 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Gold imports and exports 76, 152, 228, 338, 436, 530, 608, 688, 820, 930, 1020, 1136 Gold movements to and from U. S. 46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Money rates 81, 157, 233, 343, 445, 538, 616, 696, 828, 938, 1028, 1144 Reichsbank: Annual report, 1938 773-778 Condition 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1025, 1141 Discount rate 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Gold reserves 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 Law governing Reichsbank, June 15, 1939 737 Retail food price index 86, 162, 238, 348, 449, 543, 621, 702, 833, 943, 1033, 1149 Security prices 86, 162, 238, 348, 449, 543, 621, 702, 833, 943, 1033, 1149 Wholesale price indexes 85, 161, 237, 347, 448, 542, 620, 701, 832, 942, 1032, 1148 Gilbert, R. R., appointed President of Federal Reserve Bank of Dallas 356 Glass: Factory employment index: Adjusted 65, 141, 217, 325, • 425, 519, 596, 675, 807, 917, 1007, 1123 Unadjusted 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Factory payrolls index 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Production index: Adjusted 63, 139, 215, 323, 423, 517, 594, 673, 805, 915, 1005, 1121 Unadjusted 64, 140, 216, 324, 424, 518, 595, 674, 806, 916, 1006, 1122 Glass, Carter, Bas-relief of: Dedication of 15-16 Photograph of facing 1 Gold: Earmarked: Discussion of 550, 631 Monthly table 46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Imports and exports: Principal countries 75, 151, 227, 337, 435, 529, 607, 687, 819, 929, 1019, 1135 United States: Gross 46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Net 75, 151, 227, 337, 435, 529, 607, 687, 819, 929, 1019, 1135 Movement to U. S., Discussion of 92-96, 247, 353, 455, 549, 709-712, 841, 1039 Production: United States 75, 151, 227, 337, 435, 529, 607, 687, 819, 929, 1019, 1135 World 75, 151, 227, 337, 435, 529, 607, 687, 819, 929, 1019, 1135 1163 Page Gold—Continued. Reserves: Central banks and governments: Discussion of 550-551 Monthly table 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 United States 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 Stock, Monetary in U. S.: Analysis of changes in. . . 46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Discussion of 709 End of month and Wednesday figures. . .38, 114, 190, 298, 398, 492, 569, 648, 780, 890, 980, 1096 Gold certificates: Circulation 45, 121, 197, 305, 405, 499, 576, 655, 787, 897, 987, 1103 Federal Reserve bank holdings: All banks combined, end of month and Wednesday figures 39, 115, 191, 299, 399, 493, 570, 649, 781, 891, 981, 1097 Each bank, Wednesday figures. 40,116, 192, 300, 400, 494, 571, 650, 782, 892, 982, 1098 Gold Reserve Act of 1934: Amendment extending powers 638 Government bonds. (See United States Government securities.) Government debt. (See Treasury finance: Public debt.) Governmental corporations and credit agencies: Assets and liabilities 60, 136, 212, 320, 420, 514, 591, 670, 802, 912, 1002, 1118 Summary of operations, 1938 365-371 Grain: Freight-car loadings indexes. . 70, 146, 222, 330, 430, 524, 601, 680, 812, 922, 1012, 1128 Wholesale price index 71, 147, 223, 331, 431, 525, 602, 681, 813, 923, 1013, 1129 Great Britain. (See United Kingdom.) Greece: Bank of: Condition 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1026, 1142 Discount rates 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Gold reserves 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 Foreign exchange rates 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Group banks: Number, deposits, branches, by States and geographic divisions, Dec. 31, 1938 480 Guaranteed obligations of the U. S. (See Treasury finance: Guaranteed obligations.) Hay crop reports 72, 682, 814, 924, 1014, 1130 Holden, St. George, reappointed Deputy Chairman, Federal Reserve Bank of San Francisco 7 Home mortgage and housing agencies: Assets and liabilities 60, 136, 212, 320, 420, 514, 591, 670, 802, 912, 1002, 1118 Summary of operations, 1938 365-369 Home Owners' Loan Corporation: Assets and liabilities 60, 136, 212, 320, 420, 514, 591, 670, 802, 912, 1002, 1118 Guaranteed obligations outstanding 58 134, 210, 318, 418, 512, 589, 668, 800, 910, 1000, 1116 Mortgage loans 61, 137, 213, 321, 421, 515, 592, 671, 803, 913, 1003, 1119 Summary of operations, 1938 365-368 1164 INDEX TO VOLUME 25 Page Hong Kong: Foreign exchange rates 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Gold movements to and from U. S. 46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Housefurnishing goods: Wholesale price indexes 71, 147, 223, 331, 431, 525, 602, 681, 813, 923, 1013, 1129 Hungary: Foreign exchange rates 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Money rates 81, 157, 233, 343, 445, 538, 616, 696, 828, 938, 1028, 1144 National Bank of: Condition 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1026, 1142 Discount rates 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Gold reserves 74, 150, 226, 336, 434, 528, 606, 683, 818, 928, 1018, 1134 Imports. (See Foreign trade.) Income: International income position of U. S. 645 Payments to individuals: Charts 168, 455 Discussion of 167 Tax receipts. (See Treasury finance: Receipts.) Index numbers: Cost of living 86, 162, 238, 348, 449, 543, 621, 702, 833, 943, 1033, 1149 Department store sales and stocks. .70, 146, 222, 330, 430, 524, 680, 812, 922, 1012, 1128 Factory employment: Adjusted 65, 141, 217, 325, 425, 519, 596, 675, 807, 917, 1007, 1123 Unadjusted 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Factory payrolls 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Freight-car loadings 70, 146, 222, 330, 430, 524, 601, 680, 812, 922, 1012, 1128 Industrial production: Adjusted 63, 139, 215, 323, 423, 517, 594, 673, 805, 915, 1005, 1121 Unadjusted 64, 140, 216, 324, 424, 518, 595, 674, 806, 916, 1006, 1122 Retail food prices 86, 162, 238, 348, 449, 543, 621, 702, 833, 943, 1033, 1149 Security prices 86, 162, 238, 348, 449, 543, 621, 702, 833, 943, 1033, 1149 Wholesale prices 85, 161, 237, 347, 448, 542, 620, 701, 832, 942, 1032, 1148 India, British: Foreign exchange rates 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Gold imports and exports 76, 152, 228, 338, 436, 530, 608, 688, 820, 930, 1020, 1136 Gold movements to and from U. S. 46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Gold production 75, 151, 227, 337, 435, 529, 607, 687, 819, 929, 1019, 1135 Reserve Bank of: Condition 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1026, 1142 Discount rates 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Gold reserves 74,150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 Pago Industrial advances of Federal Reserve banks: All banks combined: End of month and Wednesday figures. 39, 115, 191, 299, 399, 493, 570, 649, 781, 891, 981, 1097 Number and amounts 43, 119, 195, 303, 403, 497, 574, 653, 785, 895, 985, 1101 Each bank, Wednesday figures. . .40, 116, 192, 300, 400, 494, 571, 650, 782, 892, 982, 1098 Maturity distribution 39, 115, 191, 299, 399, 493, 570, 649, 781, 891, 981, 1097 Rates 55, 131, 207, 315, 415, 509, 586, 665, 797, 907, 997, 1113 Industrial loans. (See Commercial, industrial and agricultural loans; Industrial advances of Federal Reserve banks.) Industrial production. (See Production, Industrial.) Installment loans: Term loan survey 562 Insurance agencies of United States Government: Assets and liabilities 60, 136, 212, 320, 420, 514, 591, 670, 802, 912, 1002, 1118 Summary of operations, 1938 366 Insurance of deposits: Federal Reserve membership requirement for State banks repealed 559 Survey of number and amounts of deposits, by size and classes, by types of banks, by States, Sept. 21, 1938 101-104 Insured commercial banks: Assets and liabilities: Dec. 31, 1938 381 June 30, 1939 877 Deposits insured: survey, Sept. 21,1938 .101-104 Number of: Dec. 31, 1938 381 June 30, 1939 877 Interest on deposits: Credit for obtaining new depositor not in conflict with Regulation Q. (Ruling.) . . . 559 Savings accounts: Payment of interest after death of depositor. (Ruling.) 851 Transfers to FHA mortgages. (Ruling.) 850 Time certificates of deposits, Payment or renewal of those maturing on Sunday. (Ruling.) 850 Interest on public debt. (See Treasury finance: Public debt.) Interest rates: Charged customers by banks . .56, 132, 208, 316, 416, 510, 587, 666, 798, 908 Commercial loan rates: 1928-1939: 963-969 Chart 963 Cities included 965 Comparable figures beginning 1928 966 Computation of averages 965 Definition of commercial loans . . 964 Movements in rates 964 Revised figures compared with former rates 966 Schedule 965, 968 Table of figures, 1928-1939 969 Sept. 1-15, 1938: 17-19 Chart 17 Geographical differences 18 Level of customers' rates 18 Method of reporting 17 INDEX TO VOLUME 25 1165 Page Interest rates— -Continued. Commercial loan rates—Continued. Sept. 1-15, 1938—Continued. Variation in rates by size of loans 18 Volume of loans covered by survey 18 Mar. 16-31 and June 1-15, 1939 725-726 Monthly table 998 Government securities, Discussion of . .2, 3, 628 Open market, in N. Y. C 56, 132, 208, 316, 416, 510, 587, Q66y 798, 908, 998, 1114 Term loans survey 562 Time deposits 55, 131, 207, 315, 415, 509, 586, 665, 797, 907, 997, 1113 (See also Discount rates.) Interlocking bank directorates. (See Bank directorates, Interlocking.) International capital movements: Discussion of 92-96 International capital position of United States 645 International capital transactions of United States: Statistics: July-Sept., 1938 32-35 Oct.-Nov., 1938 184-187 1938 288-296 Description of tables 284-287 Monthly table 437, 531, 609, 689, 821, 931, 1021, 1137 International income position of United States. . 645 Investments: All banks in U. S. on call dates: Sept. 28, 1938 24-28 Dec. 31, 1938 382-386 Mar. 29, 1939 563-567 June 30, 1939 970-974 Monthly table 47, 123, 199, 307, 407, 501, 578, 657, 789, 899, 989, 1105 American investment abroad: Chart 95 Discussion of 95 Tables 645 Foreign investment in U. S.: Chart 95 Discussion of 96, 554, 1041-1043 Table 645 Member banks: All banks on call dates: Dec. 31, 1938 264 Mar. 29, 1939 489 June 30, 1939 728 Monthly table . . 48, 124, 200, 308, 408, 502, 579, 658, 790, 900, 990, 1106 Chart 245, 1051 Discussion of 244-245, 631, 713-714 Maturity distribution, Discussion of. . . 260 Reporting banks: All banks, N. Y. C. and outside N. Y. C, monthly and Wednesday figures . 5 0 , 126, 202, 310, 410, 504, 581, 660, 792, 902, 992, 1108 By districts and for Chicago, Wednesday figures 52, 128, 204, 312, 412, 506, 583, 662, 794, 904, 994, 1110 (See also Loans and investments.) Iron and steel: Factory employment index: Adjusted 65, 141, 217, 325, 425, 519, 596, 675, 807, 917, 1007, 1123 Unadjusted 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Iron and Steel—Continued. Factory payrolls index 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Prices, Discussion of 953 Production index: Adjusted 63, 139, 215, 323, 423, 517, 594, 673, 805, 915, 1005, 1121 Unadjusted 64, 140, 216, 324, 424, 518, 595, 674, 806, 916, 1006, 1122 Wholesale price index 71, 147, 223, 331, 431, 525, 602, 681, 813, 923, 1013, 1129 Italy: Bank of: Discount rates 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Gold reserves 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 Foreign exchange rates 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Money rates 81, 157, 233, 343, 445, 538, 616, 696, 828, 938, 1028, 1144 Wholesale price indexes 85, 161, 237, 347 448, 542, 620, 701, 832, 942, 1032, 1148 Japan: Bank of: Condition 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1026, 1142 Discount rates 82, 158, 234 344 445, 539, 617, 697, 829, 939, 1029, 1145 Gold reserves 74, 150, 226, 336 434, 528, 606, 686, 818, 928, 1018, 1134 Foreign exchange rates 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Gold movements to and from U. S.. .46, 122 198 306, 406, 500, 577, 656, 788, 898, 988, 1104 Money rates 81, 157, 233, 343 445, 538, 616, 696, 828, 938, 1028, 1144 Wholesale price indexes 85, 161, 237, 347 448, 542, 620, 701, 832, 942, 1032, 1148 Java: Bank of: Condition 78, 154, 230, 340 441, 535, 613, 693, 825, 935, 1027, 1143 Discount rates 82, 158, 234, 344 445, 539, 617, 697, 829, 939, 1029, 1145 Gold reserves 74, 150, 226, 336 434, 528, 606, 686, 818, 928, 1018, 1134 Johnson, L. E. reelected Class A Director, Federal Reserve Bank of Richmond 6 Johnston, Oscar G., appointed Deputy Chairman, Federal Reserve Bank of St. Louis 7 Klages, R. E., appointed Deputy Chairman, Federal Reserve Bank of Cleveland * 7 Krost, Martin 178, 265, 871 Land Bank Commissioner loans. (See Federal land banks and Land Bank Commissioner: Loans outstanding.) Lassiter, Robert, redesignated Chairman and Federal Reserve Agent, Richmond 7 Latvia: Bank of: Condition 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1027, 1143 Discount rates 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Laws and legislation. (See Banking and financial legislation.) Lead production index: Adjusted 63, 139, 215, 323, 423, 517, 594, 673, 805, 915, 1005, 1121 1166 INDEX TO VOLUME 25 Page Page Lead production index—Continued. Unadjusted 64, 140, 216, 324, 424, 518, 595, 674, 806, 916, 1006, 1122 Leather and leather products: Factory employment index: Adjusted 65, 141, 217, 325, 425, 519, 596, 675, 807, 917, 1007, 1123 Unadjusted 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Factory payrolls index 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Prices, Discussion of 951 Production index: Adjusted 63, 139, 215, 323, 423, 517, 594, 673, 805, 915, 1005, 1121 Unadjusted 64, 140, 216, 324, 424, 518, 595, 674, 806, 916, 1006, 1122 Wholesale price index 71, 147, 223, 331, 431, 525, 602, 681, 813, 923, 1013, 1129 Liabilities. (See Condition statements.) Lichtenstein, Walter, reappointed Secretary of Federal Advisory Council 172 Liquidity of member banks: Discussion of 262 Lithuania: Bank of: Condition 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1027, 1143 Discount rates: Changes in 539, 697 Monthly table 82, 158, 234, 344, 445, 539, 617, 697, 829, 939,1029,1145 Livestock: Freight-car loadings indexes. . .70, 146, 222, 330, 430, 524, 601, 680, 812, 922, 1012, 1128 Wholesale price index 71, 147, 223, 331, 431, 525, 602, 681, 813, 923, 1013, 1129 Loans: Agricultural. (See Commercial, industrial and agricultural loans.) Brokers'. (See Brokers and dealers in securities: Loans to.) Commercial. (See Commercial, industrial and agricultural loans.) Executive officers of member banks: Public act extending period 559 Industrial. (See Commercial, industrial and agricultural loans; Industrial advances of Federal Reserve banks.) Member banks: Classification changes 259 Real estate. (See Real estate: Loans.) Security. (See Securities: Loans on.) Stock and bond collateral loans. (Ruling.) 362 Term loans to commercial and industrial concerns 560-562 Total: Reporting member banks: All banks, N. Y. C. and outside N. Y. C, monthly and Wednesday figures 50, 126, 202, 310, 410, 504, 581, 660, 792, 902, 992, 1108 By districts and for Chicago, Wednesday figures 52, 128, 204, 312, 412, 506, 583, 662, 794, 904, 994, 1110 Loans and investments: All banks in U. S. on call dates: Sept. 28, 1938 24-28 Dec. 31, 1938 382-386 Mar. 29, 1939 563-567 June 30, 1939 970-974 Loans and investments—Continued. All banks in U. S. on call dates—Continued. Monthly table 47, 123, 199, 307, 407, 501, 578, 657, 789, 899, 989, 1105 Insured commercial banks: Dec. 31, 1938 381 June 30, 1939 877 Member banks: All banks on call dates: Dec. 31, 1938 264 Mar. 29,1939 488-489 June 30,1939 727-728 Monthly table 48, 124, 200, 308, 408, 502, 579, 658, 790, 900, 990, 1106 Charts 9, 175, 244, 358, 556, 633, 712, 958 Discussion of 245-256, 354, 456, 631, 713-714 Reporting banks: All banks, N. Y. C. and outside N. Y. C, monthly and Wednesday figures 50,126, 202, 310, 410, 504, 581, 660, 792, 902, 992, 1108 By districts and for Chicago, Wednesday figures 52, 128, 204, 312, 412, 50.6, 583, 662, 794, 904, 994, 1110 Mutual savings banks: Sept. 28, 1938 28 Dec. 31, 1938 386 Mar. 29, 1939 567 June 30, 1939 974 National member banks: Sept. 28, 1938 26 Dec. 31, 1938 384 Mar. 29, 1939 565 June 30, 1939 972 Private banks: Sept. 28, 1938 28 Dec. 31, 1938 386 Mar. 29, 1939 567 June 30, 1939 974 State banks: Sept. 28, 1938 27 Dec. 31, 1938 385 Mar. 29, 1939 566 June 30, 1939 973 Loeb, Howard A., reelected Vice President of Federal Advisory Council 172 Longstreet, Victor M 963 Lumber and lumber products: Factory employment index: Adjusted 65, 141, 217, 325, 425, 519, 596, 675, 807, 917, 1007, 1123 Unadjusted 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Factory payrolls index 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Wholesale price index 71, 147, 223, 331, 431, 525, 602, 681, 813, 923, 1013, 1129 McAdoo, W. G.: Letter on 25th anniversary of signing of Federal Reserve Act 13 McCabe, Thomas B., designated Chairman and Federal Reserve Agent, Philadelphia 7 McCormick, Charles P., appointed Class C Director, Federal Reserve Bank of Richmond . . 714 Machinery: Factory employment index: Adjusted 65, 141, 217, 325, 425, 519, 596, 675, 807, 917, 1007, 1123 Unadjusted 67, 143, 219, 327 427, 521, 598, 677, 809, 919, 1009, 1125 Factory payrolls index 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 INDEX TO VOLUME 25 Page McKinney, B. A., Death of 356 McKnight, J. R., elected Class A Director, Federal Reserve Bank of Minneapolis 7 McLarin, W. S., Jr., appointed First Vice President, Federal Reserve Bank of Atlanta 956 Maestre, Sidney, elected Class A Director, Federal Reserve Bank of St. Louis 7 Malloy, Edwin, reelected Class B Director, Federal Reserve Bank of Richmond 7 Manufactures: Production index: Adjusted: By industries, monthly figures. . 63, 139, 215, 323, 423, 517, 594, 673, 805, 915, 1005, 1121 Durable and nondurable, 1919-1938 21 Total, monthly figures. . 62, 138, 214, 322, 422, 516, 593, 672, 804, 914, 1004, 1120 Charts 357, 1050 Unadjusted: By industries, monthly figures. . 64, 140, 216, 324, 424, 518, 595, 674, 806, 916, 1006, 1122 Durable and nondurable, 1919-1938 21 Total, yearly and monthly figures 62, 138, 214, 322, 422, 516, 593, 672, 804, 914, 1004, 1120 Margin account statistics 54, 130, 206, 314, 414, 508, 585, 664, 796, 906, 996, 1112 Margin requirements: Banks. Regulation U: Stocks registered, Jan. 31, 1939, list published 173 Brokers and dealers in securities. Regulation T: Capital contribution loans. (Amendment.) 722 Cash transactions. (Amendment.) . . . . 466 Domestic broker permitted to borrow from foreign broker. (Ruling.) . . . . 721 Loans by one member of an exchange to another. (Amendment.) 466 Time extension after expiration of original period (Ruling.) 253 Transacting business through medium of a member. (Ruling.) 961 Maturities: Bills held by Federal Reserve banks. (See Bills: Federal Reserve bank holdings.) Public debt. (See Treasury finance: Public debt.) United States Government securities held by Reserve banks. (See United States Government securities: Federal Reserve bank holdings.) Member bank reserves, Reserve bank credit, and related items: Monthly table 38, 114, 190, 298, 398, 492, 569, 648, 780, 890, 980, 1096 Member banks: Banking offices: 1933-1939 109, 477, 1065 Bills discounted for. (See Bills: Discounted by Federal Reserve banks.) Borrowings at Federal Reserve banks. (See Borrowings.) Branches: 1933-1939 109, 477, 1065 1938 changes 110 Jan.-Mar., 1939 changes 478 1167 Page Member banks—Continued. Branches—Continued. Jan.-Sept., 1939 changes 1066 Condition of. (See Condition statements.) Deposits. (See Deposits.) Earnings and expenses: 1938 and 1937 372-379 Jan.-June, 1939 875 Operating ratios, 1938 481-486 Loans and investments. (See Loans and investments.) National banks. (See National member banks.) Number of: 1933-1939 109, 477, 1065 1938 changes 110 Jan.-Mar., 1939 changes 478 Jan.-Sept., 1939 changes 1066 Monthly table 47, 123, 199, 307, 407, 501, 578, 657, 789, 899, 989, 1105 Reserves. (See Reserves.) State banks. (See State member banks.) Suspensions. (See Banks: Suspensions.) Merchandise: Exports: Chart of 552 Discussion of 92, 96, 551-552, 949, 955, 1047-1048 Exports and imports: Monthly table 70, 146, 222, 330, 430, 524, 601, 680, 812, 922, 1012, 1128 Freight-car loadings indexes . 70, 146, 222, 330, 430, 524, 601, 680, 812, 922, 1012, 1128 Merritt, J. H.: Reappointed Class C Director, Federal Reserve Bank of Dallas 7 Redesignated Chairman and Federal Reserve Agent, Dallas 7 Metals and metal products: Wholesale price indexes 71, 147, 223, 331, 431, 525, 602, 681, 813, 923, 1013, 1129 Mexico: Bank of: Discount rate 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Gold reserves 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 Foreign exchange rates 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Gold movements to and from U. S. 46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Gold production 75, 151, 227, 337, 435, 529, 607, 687, 819, 929, 1019, 1135 Middleton, J. D., reelected Class B Director, Federal Reserve Bank of Dallas 7 Minerals: Production index: Adjusted: By kinds, monthly figures 63, 139, 215, 323, 423, 517, 594, 673, 805, 915, 1005, 1121 Total, monthly figures. 62, 138, 214, 322, 422, 516, 593, 672, 804, 914, 1004, 1120 Unadjusted: By kinds, monthly figures 64, 140, 216, 324, 424, 518, 595, 674, 806, 916, 1006, 1122 Total, yearly and monthly figures 62, 138, 214, 322, 422, 516, 593, 672, 804, 914, 1004, 1120 1168 INDEX TO VOLUME 25 Page Page Monetary gold stock. (See Gold: Stock, Monetary.) Monetary legislation. (See Banking and financial legislation.) "Monetary measures and objectives'". 363-364, 461 Money in circulation: Chart 355 Discussion of 354 Kinds of: End of month figures . . 45, 121, 197, 305, 405, 499, 576, 655, 787, 897, 987, 1103 Seasonal variations in: Description of methods 641-642 Revised figures, 1919-1939 643-644 Seasonal adjustment factors, 1919-1940 643 Total: End of month and Wednesday figures 38, 114, 190, 298, 398, 492, 569, 648, 780, 890, 980, 1096 Money rates: Charged customers by banks 56, 132, 208, 316, 416, 510, 587, 666, 798, 908, 998, 1114 Charts 175, 250, 463, 847, 1051 Commercial loan rates: 1928-1939: 963-969 Chart 963 Cities included 965 Comparable figures beginning 1928 966 Computation of averages 965 Definition of commercial loans . . . 964 Movements in rates 964 Revised figures compared with former rates 966 Schedule 965, 968 Table of figures, 1928-1939 969 Sept. 1-15, 1938: 17-19 Chart 17 Geographical differences 18 Level of customers' rates 18 Method of reporting 17 Variation in rates by size of loans 18 Volume of loans covered by survey 18 Mar. 16-31 and June 1-15, 1939 . . 725-726 Monthly table 998, 1114 Foreign countries 81, 157, 233, 343, 445, 538, 616, 696, 828, 938, 1028, 1144 National summary 98, 175, 250, 358, 463, 556, 633, 716, 958 Open market, in N. Y. C 56, 132, 208, 316, 416, 510, 587, 666, 798, 908, 998, 1114 Mutual savings banks: Assets and liabilities: Sept. 28, 1938 28 Dec. 31, 1938 386 Mar. 29, 1939 567 June 30, 1939 974 Banking offices: 1933-1939 109, 477, 1065 Branches: 1933-1939 109, 477, 1065 Dec. 31, 1938 479 1938 changes 110 Jan.-Mar., 1939 changes 478 Jan.-Sept., 1939 changes 1066 Deposits on call dates 47, 123, 199, 307, 407, 501, 578, 657, 789, 899, 989, 1105 Loans and investments on call dates 47, 123, 199, 307, 407, 501, 578, 657, 789, 899, 989, 1105 Number of: 1933-1939 109, 477, 1065 Mutual savings banks—Continued, Number of—Continued. 1938 changes 110 Jan.-Mar., 1939 changes 478 Jan.-Sept., 1939 changes 1066 Call dates: Sept. 28, 1938 28 Dec. 31, 1938 386 Mar. 29, 1939 567 June 30, 1939 974 Monthly table 47, 123, 199, 307, 407, 501, 578, 657, 789, 899, 989, 1105 Operating branches: Dec. 31, 1938 479 Mullaney, E. E., reelected Class A Director, Federal Reserve Bank of Kansas City 7 Nardin, W. T., redesignated Chairman and Federal Reserve Agent, St. Louis 7 National bank notes: Circulation 45, 121, 197, 305, 405, 499, 576, 655, 787, 897, 987, 1103 National income. (See Income.) National member banks: Banking offices: 1933-1939 109, 477, 1065 Branches: 1933-1939 109, 477, 1065 Dec. 31, 1938, by States 479 1938 changes 110 Jan.-Mar., 1939 changes 478 Jan.-Sept., 1939 changes 1066 Condition on call dates: Dec. 31, 1938 264 Mar. 29, 1939 488-489 June 30, 1939 727-728 Deposits on call dates 47, 123, 199, 307, 407, 501, 578, 657, 789, 899, 989, 1105 Earnings and expenses: 1938 and 1937 374, 378 Jan.-June, 1939 875 Group banks, Dec. 31, 1938 480 Number of: 1933-1939 109, 477, 1065 1938 changes 110 Jan.-Mar., 1939 changes 478 Jan.-Sept., 1939 changes 1066 Call dates: Sept. 28, 1938 26 Dec. 31, 1938 384 Mar. 29, 1939 565 June 30, 1939 972 Monthly table 47, 123, 199, 307, 407, 501, 578, 657, 789, 899, 989, 1105 Operating branches: Dec. 31, 1938, by States 479 Suspensions: Monthly table 46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Trust powers. (See Trust powers of national banks.) National summary of business conditions 8, 97, 174, 249, 357, 462, 555, 632, 715, 846, 957, 1050 Neely, Frank H.: Reappointed Class C Director, Federal Reserve Bank of Atlanta 7 Redesignated Chairman and Federal Reserve Agent, Atlanta 7 Netherlands: Bank of: Annual report, 1938-1939 1068-1076 INDEX TO VOLUME 25 Page 1169 Page Nonferrous metals—Continued. Prices, Discussion of 953 v Production indexes: 78, 154, 230, 340, Adjusted 63, 139, 215, 323, 441, 535, 613, 693, 825, 935, 1027, 1143 423, 517, 594, 673, 805, 915, 1005, 1121 Discount rates: Unadjusted 64, 140, 216, 324, Change in 829 424, 518, 595, 674, 806, 916, 1006, 1122 Monthly table 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Wholesale price index 71, 147, 223, 331, Gold reserves 74, 150, 226, 336, 431, 525, 602, 681, 813, 923, 1013, 1129 434, 528, 606, 686, 818, 928, 1018, 1134 Nonmember banks: Banking and financial legislation: Branches: 1933-1939 109, 477, 1065 Nov. 25, 1938. Authorization to prohibit export of gold 1067 Dec. 31, 1938, by States 479 Cost of living index 86, 162, 238, 348, 1938 changes 110 449, 543, 621, 702 833, 943, 1033, 1149 Jan.-Mar., 1939 changes 478 Foreign exchange rates 84, 160, 236, 346, Jan.-Sept., 1939 changes 1066 447, 541, 619, 700, 831, 941, 1031, 1147 Deposits: Gold movements to and from U . S . . . 46, 122, 198, Call dates 47, 123, 199, 307, 306, 406, 500, 577, 656, 788, 898, 988, 1104 407, 501, 578, 657, 789, 899, 989, 1105 Money rates 81, 157, 233, 343, Deposits of, held by Federal Reserve banks: 445, 538, 616, 696, 828, 938, 1028, 1144 End of month and Wednesday figures . 38, Retail food price index 86, 162, 238, 348, 114, 190, 298, 392, 492, 569, 648, 780, 449, 543, 621, 702, 833, 943, 1033, 1149 890, 980, 1096 Security prices 86, 162, 238, 348, Group banks, Dec. 31, 1938 480 449, 543, 621, 702, 833, 943, 1033, 1149 Insured: Wholesale price indexes . . 85, 161, 237, 347, Assets and liabilities: 448, 542, 620, 701, 832, 942, 1032, 1148 Dec. 31, 1938 381 Neutrality Act of 1939: June 30, 1939 877 Credits to belligerants, regulations 961 Banking offices: Financial transactions under 1054 1933-1939 109, 477, 1065 New Zealand: Branches: Foreign exchange rates 84, 160, 236, 346, 1933-1939 109, 477, 1065 447, 541, 619, 700, 831, 941, 1031, 1147 110 1938 changes Reserve Bank of: 478 Jan.-Mar., 1939 changes Condition 78, 154, 230, 340, 1066 Jan.-Sept., 1939 changes 441, 535, 613, 693, 825, 935, 1027, 1143 Number of: Discount rates: 1933-1939 109, 477, 1065 Change in 82 381 Dec. 31, 1938 Monthly table 82, 158, 234, 344, 110 1938 changes 445, 539, 617, 697, 829, 939, 1029, 1145 478 Jan.-Mar., 1939 changes Gold reserves 74, 150, 226, 336, 877 June 30, 1939 434, 528, 606, 686, 818, 928, 1018, 1134 1066 Jan.-Sept., 1939 changes Newton. Oscar, Death of 172 Suspensions 46, 122, 198, 306, Nondurable goods: 406, 500, 577, 656, 788, 898, 988, 1104 Factory employment index: Loans and investments, call dates 47, 123, 199, Adjusted 65, 141, 217, 325, 307, 407, 501, 578, 657, 789, 899, 989, 1105 425, 519, 596, 675, 807, 917, 1007, 1123 Number of, call dates 47, 123, 199, 307, Unadjusted 67, 143, 219, 327, 407, 501, 578, 657, 789, 899, 989, 1105 427, 521, 598, 677, 809, 919, 1009, 1125 Operating branches: Factory payrolls index 67, 143, 219, 327, Dec. 31, 1938, by States 479 427, 521, 598, 677, 809 919 1009 1125 Uninsured: Prices, Discussion of 951 Banking offices: Production index: 1933-1939 109, 477,1065 Adjusted: Branches: 1919-1938 21 1933-1939 109, 477,1065 Monthly table 139, 215, 323, 423, 1938 changes 110 517, 594, 673, 805, 915, 1005, 1121 478 Jan.-Mar., 1939 changes Discussion of 20 1066 Jan.-Sept., 1939 changes Unadjusted: Number of: 1923-1938 21 1933-1939 109, 477,1065 Monthly table 140, 216, 324, 424, .110 1938 changes 518, 674, 806, 916, 1006, 1122 478 Nonferrous metals: Jan.-Mar., 1939 changes 1066 Jan.-Sept., 1939 changes Factory employment index: Suspensions 46, 122, 198,306, Adjusted 65, 141, 217, 325, 406, 500, 577, 656, 788, 898, 988,1104 425, 519, 596, 675, 807, 917, 1007, 1123 Unadjusted 67, 143, 219, 327, Norway: Bank of: 427, 521, 598, 677, 809, 919, 1009, 1125 Condition 78, 154, 230,340, Factory payrolls index 67, 143, 219, 327, 441, 535, 613, 693, 825, 935, 1027,1143 427, 521, 598, 677, 809, 919, 1009, 1125 Netherlands—Continued. Bank of—Continued. Condition 1170 INDEX TO VOLUME 25 Page Page Norway—Continued. Bank of—Continued. Discount rates: Change in 939 Monthly table 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Gold reserves 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 Foreign exchange rates . 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Noyes, N. H., reelected Class B. Director, Federal Reserve Bank of Chicago 7 Number of banks. (See Banks: Number of) Oats crop reports 72, 682, 814, 924, 1014, 1130 Obligations fully guaranteed by the U. S. (See Treasury finance: Guaranteed obligations.) O'Connell,'j. E., reelected Class B Director, Federal Reserve Bank of Minneapolis 7 Odlin, Reno, elected Class A Director, Federal Reserve Bank of San Francisco 7 Objectives, Monetary measures and . 363-364, 461 Officers and employees: Member banks: 1938 378-379 Jan.-June, 1939 875 Open Market Committee. (See Federal Open Market Committee.) Open market operations: 630, 710, 839, 1049 Discussion of Open market paper: Member bank holdings: All banks on call dates: 489 Mar. 29, 1939 728 June 30, 1939 Monthly table 308, 408, 502, 579, 658, 790, 900, 990, 1106 Reporting banks: All banks, N. Y. C. and outside N. Y. C, monthly and Wednesday figures . 50, 126, 202, 310, 410. 504, 581, 660, 792, 902. 992, 1108 By districts and for Chicago, Wednesday figures 52, 128, 204, 312 412, 506, 583, 662, 794, 904, 994, 1110 Operating ratios of member banks, 1938: By size groups and geographic divisions 481-486 Ore: Freight-car loadings indexes 70, 146, 222, 330, 430, 524, 601, 680, 812, 922, 1012, 1128 Paper and printing: Factory employment index: Adjusted 65, 141, 217, 325, 425, 519, 596, 675, 807, 917, 1007, 1123 Unadjusted 67, 143, 219, 327 427, 521, 598, 677, 809. 919, 1009, 1125 Factory payrolls index . 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Prices, Discussion of 951 Production index: Adjusted 63, 139, 215, 323, 423, 517, 594, 673, 805, 915, 1005, 1121 Unadjusted 64, 140, 216, 324, 424, 518, 595, 674, 806, 916, 1006, 1122 Wholesale price index 71, 147, 223, 331, 431, 525, 602, 681, 813, 923, 1013, 1129 Paper currency: Circulation 45, 121, 197, 305, 405, 499, 576, 655, 787, 897, 987, 1103 Paper currency—Continued. Shipments and receipts 45, 121, 197, 305, 405, 499, 576, 655, 787, 897, 987, 1103 Parker, Robert S., appointed President of Federal Reserve Bank of Atlanta 173 Partnership loans under Section 11 (m) of Federal Reserve Act. (Ruling.) 362 Payrolls, Factory: Charts 462 Indexes: By industries, monthly figures 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Total, yearly and monthly figures .62, 138, '214, 322, 422, 516, 593, 672, 804, 914, 1004, 1120 National summary 9, 98, 174, 249, 463, 715 Personal loans: Amounts received in connection with personal loans as deposits. (Ruling.) 637 Peru: Central Reserve Bank of: Condition 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1027, 1143 Discount rate 82, 158, 234, 344, 445, 5391 617, 697, 829, 939, 1029, 1145 Gold reserves 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 Gold movements to and from U. S. 46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Petroleum and products: , Factory employment index: Adjusted 65, 141, 217, 325, 425, 519, 596, 675, 807, 917, 1007, 1123 Unadjusted 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Factory payrolls index 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Production index: Adjusted 63, 139, 215, 323, 423, 517, 594, 673, 805, 915, 1005, 1121 Unadjusted 64, 140, 216, 324, 424, 518, 595, 674, 806, 916, 1006, 1122 Wholesale price index 71, 147, 223, 331, 431, 525, 602, 681, 813, 923, 1013, 1129 Philippine Islands: Gold movements to and from U. S. . 46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Phillips, L. E., reelected Class B Director, Federal Reserve Bank of Kansas City 7 Poland: Bank of: Condition 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1027, 1143 Discount rate 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Gold reserves 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 Foreign exchange rates . 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Porter, J. F., appointed Deputy Chairman, Federal Reserve Bank of Atlanta 7 Portugal: Bank of: Condition 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1027, 1143 Discount rate 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Gold reserves 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 INDEX TO VOLUME 25 Page 1171 Page Private banks—Continued. Portugal—Continued. Branches—Continued. Foreign exchange rates 84, 160, 236, 346, Jan.-Mar., 1939 changes 478 447, 541, 619, 700, 831, 941, 1031, 1147 Jan.-Sept., 1939 changes 1066 Postal savings deposits: Number of: Interest rate on, paid by member banks. . 55, 131, 1933-1939 109, 477, 1065 207, 315, 415, 509, 586, 665, 797, 907, 997, 1113 Sept. 28, 1938 28 Member bank holdings: Dec. 31, 1938 386 All banks on call dates: 1938 changes . . 110 Dec. 31, 1938 264 Mar. 29, 1939 567 Mar. 29, 1939 488 Jan.-Mar., 1939 changes 478 June 30, 1939 727 June 30, 1939 974 Monthly table 49, 125, 201, 309, Jan.-Sept., 1939 changes 1066 409, 503, 580, 659, 791, 901, 991, 1107 Operating branches, Dec. 31, 1938 479 Reporting banks: "Problems of Banking and Bank Supervision". . 97 All banks, N. Y. C. and outside Production, employment and trade: N. Y. C, monthly and WednesMonthly table 62, 138, 214, 322, day figures 311, 422, 516, 593, 672, 804, 914, 1004, 1120 411, 505, 582, 661, 793, 903, 993, 1109 Production, Industrial: By districts and for Chicago, Charts 8, 20, 97, 169, 174, 249, Wednesday figures 313, 456, 462, 555, 632, 715, 844, 846, 1046 413, 507, 584, 663, 795, 905, 995, 1111 Discussion of 168, 456-457, 844-845 Postal savings system 61, 137, 213, 321, Indexes: 421, 515, 592, 671, 803, 913, 1003, 1119 Adjusted: Potato crop reports 72, 682, 814, 924, 1014 By industries, monthly figures 63, President of United States: 139, 215, 323, 423, 517, 594, 673, 805, Letter on 25th anniversary of signing of 915, 1005, 1121 Federal Reserve Act 13 Total, monthly figures 62 Proclamations on newly-mined silver. 105, 723 138, 214, 322, 422, 516, 593, 672, 804, Regulations concerning credits to belliger914, 1004, 1120 ents 961 National summary 8, 97, 174, 249, Veto message on interlocking bank directo357, 462, 555, 632, 715, 846, 957, 1050 rates 719 Unadjusted: Prices: By industries, monthly figures 64, Agricultural : 140, 216, 324, 424, 518, 595, 674, 806, Discussion of 459, 843 916, 1006, 1122 Retail food: Total, yearly and monthly figures. . 62 Discussion of 844, 950 138, 214, 322, 422, 516, 593, 672, 804, Index, principal countries 86, 162, 238, 348, 914, 1004, 1120 449, 543, 621, 702, 833, 943, 1033, 1149 Production, Manufacturing. (See ManufacStabilization of: tures: Production.) Board of Governors statement on 255-259, Production credit associations: 461 Loans outstanding 61, 137, 213, 321, Wholesale commodity: 421, 515, 592, 671, 803, 913, 1003, 1119 Charts 97, 358, 460, Profit and loss: 556, 716, 843, 847, 950, 951, 958, 1051 Member banks: Discussion of 170, 459-461, 842-844, 949-955 1938 347-379 Indexes by groups: Jan.-June, 1939 875 Principal countries . 85, 161, 237, 347, Public debt, U. S. Government. (See Treasury finance: Public debt.) 448, 542, 620, 701, 832, 942, 1032, 1148 United States 71, 147, 223, 331, 431, Public Works Administration: Assets and liabilities: 525, 602, 681, 813, 923, 1013, 1129 Combined with Reconstruction Finance National summary 9, 175, 250, Corporation figures 60, 136, 212, 358, 463, 556, 633, 716, 847, 957, 1051 320, 420, 514, 591, 670, 802, 912,1002,1118 Principal assets and liabilities of Federal ReSummary of operations, 1938 366-367 serve banks: Monthly table 39, 115, 191, 299, Railroads: Earnings and expenses 170 399, 493, 570, 649, 781, 891, 981, 1097 Real estate: Private banks: Loans on, by member banks: Assets and liabilities: All banks on call dates: Sept. 28, 1938 28 Dec. 31, 1938 264 Dec. 31, 1938 386 Mar. 29, 1939 489 Mar. 29, 1939 567 June 30, 1939 728 June 30, 1939 974 Monthly table 48, 124, 200, 308, Banking offices: 408, 502, 579, 658, 790, 900, 990, 1106 1933-1939 109, 477, 1065 Reporting banks: Branches: All banks, N. Y. C. and outside 1933-1939 109, 477, 1065 N. Y. C, monthly and Wednesday figures 50, 126, 202, 310, Dec. 31, 1938 479 410, 504, 581, 660, 792, 902, 992, 1108 1938 changes 110 1172 INDEX TO VOLUME 25 Page Real estate—Continued. Loans on, by member banks—Continued. Reporting banks—Continued. By districts and for Chicago, Wednesday figures 52, 128, 204, 312, 412, 506, 583, 662, 794, 904, 994, 1110 Member bank holdings: Dec. 31, 1938 264 Mar. 29, 1939 489 June 30, 1939 728 Term loans secured by real estate 561 Receipts, U. S. Treasury. (See Treasury finance: Receipts.) Reconstruction Finance Corporation: Act continuing functions 253-254 Assets and liabilities: Combined with Public Works Administration figures 60, 136, 212, 320, 420, 514, 591, 670, 802, 912, 1002, 1118 Guaranteed obligations outstanding . 58, 134, 210, 318, 418, 512, 589, 668, 800, 910, 1000, 1116 Loans and investments 60, 136, 212, 320, 420, 514, 591, 670, 802, 912, 1002, 1118 Mortgage Company operations, 1938 . . 365-368 Summary of operations, 1938 365-371 Redemption fund; Federal Reserve notes. (See Federal Reserve notes: Redemption fund.) Regulations of Board of Governors: Regulation D. Reserve requirements: Funds for retiring personal loans as deposits. (Ruling.) 637 Regulation F. Trust powers of national banks: Amendments 1054 Ruling : 12 Regulation G. Rediscount of notes secured by adjusted service certificates: Regulation repealed 361 Regulation H. Membership of State banks: Revised 1054-1064 Regulation J. Check clearing and collection: Revised 719-721 Regulation L. Interlocking directorates: Amendments 719 Regulation O. Executive officers of member banks. Amendment. Change in definition of "Executive officer" 636 Regulation Q. Interest on deposits: Rulings 559, 850, 851 Regulation T. Margin requirements for brokers: Amendments 466, 722 Rulings 253,721,961 Reserve bank credit. (See Credit, Bank.) Reserve city member banks: Condition on call dates: Dec. 31, 1938 264 Mar. 29, 1939 488-489 June 30, 1939 727-728 Monthly table 48, 124, 200, 308, 408, 502, 579, 658, 790, 900, 990, 1106 Deposits: Monthly figures 44, 120, 196, 304, 404, 498, 575, 654, 786, 896, 986, 1102 Reserves: Monthly and weekly figures . .44, 120, 196, 304, 404, 498, 575, 654, 786, 896, 986, 1102 Reserve position of member banks: Monthly table 44, 120, 196, 304, 404, 498, 575, 654, 786, 896, 986, 1102 Page Reserve requirements: Member banks: Monthly table 55, 131, 207, 315, 415, 509, 586, 665, 797, 907, 997, 1113 Personal loans: Funds for retiring personal loans as deposits for reserve purposes. (Ruling.) 637 Reserves: Federal Reserve banks: All banks combined, end of month and Wednesday figures 39, 115, 191, 299, 399, 493, 570, 649, 781, 891, 981, 1097 Each bank, Wednesday figures 40, 116,192, 300, 400, 494, 571, 650, 782, 892, 982, 1098 Member banks: Account in Federal Reserve banks: All banks combined, end of month and Wednesday figures 39, 115, 191, 299, 399, 493, 570, 649, 781, 891, 981, 1097 Each F. R. bank, Wednesday figures. 40, 116, 192, 300, 400, 494, 571, 650, 782, 892, 982, 1098 Charts 10, 99, 176, 251, 359, 464, 557, 634, 711, 716, 717, 848, 959, 1052 Discussion of 91, 246, 456, 630, 709-711 Excess: Charts 98, 358 Classes of banks 44, 120, 196, 304, 404, 498, 575, 654, 786, 896, 986, 1102 Discussion of 91, 456, 630, 709 End of month and Wednesday figures 38, 114, 190, 298, 398, 492, 569, 648, 780, 890, 980, 1096 Total: All banks: Call dates: Dec. 31, 1938 264 Mar. 29, 1939 488 June 30, 1939 727 Monthly table 49, 125, 201, 309, 409, 503, 580, 659, 791, 901, 991, 1107 End of month and Wednesday figures . . 38, 114, 190, 298, 398, 492, 569, 648, 780, 890, 980, 1096 Classes of banks ... 44, 120, 196, 304, 404, 498, 575, 654, 786, 896, 986, 1102 Ratio to liabilities . . 39, 115, 191, 299, 399, 493, 570, 649, 781, 891, 981, 1097 Reporting banks: All banks, N. Y. C. and outside N. Y. C, monthly and Wednesday figures . 50, 126, 202, 311, 411, 505, 582, 661, 793, 903, 993, 1109 By districts and for Chicago, Wednesday figures, . 52, 128, 204, 313, 413, 507, 584, 663, 795, 905, 995, 1111 Retail trade: Discussion of 170 (See also Department store sales and stocks.) Retail food prices. (See Prices: Retail food.) Review of the month 1,91, 167, 243, 353, 455, 549, 627, 709, 839, 949, 1039 Rhodesia: Gold production 75, 151, 227, 337, 435, 529, 607, 687, 819, 929, 1019, 1135 INDEX TO VOLUME 25 Page Rubber and rubber products: Factory employment index: Adjusted 65, 141, 217, 325, 425, 519, 596, 675, 807, 917, 1007, 1123 Unadjusted 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Factory payrolls index 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Prices, Discussion of 951 Production indexes: Adjusted 63, 139, 215, 323, 423, 517, 594, 673, 805, 915, 1005, 1121 Unadjusted 64, 140, 216, 324, 424, 518, 595, 674, 806, 916, 1006, 1122 Wholesale price indexes 71, 147, 223, 331, 431, 525, 602, 681, 813, 923, 1013, 1129 Rulings of Board of Governors: (For rulings of Board see under subject matter, i.e., Margin requirements.) Rumania: Foreign exchange rates 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 National Bank of: Condition 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1027, 1143 Discount rate 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Gold reserves 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 Ruml, Beardsley: Reappointed Class C Director, Federal Reserve Bank of New York 7 Reappointed Deputy Chairman, Federal Reserve Bank of New York 7 Rural Electrification Administration: Loans outstanding, Dec. 31, 1938 . .365-366, 371 Salaries: Federal Reserve banks: Jan.-June, 1939 640 Member banks: 1938 374-379 Jan.-June, 1939 875 Salvador. (See El Salvador.) Savings accounts: Payment of interest on savings account after death of depositor. (Ruling.) 851 Transfers to FHA mortgages. (Ruling.) . . 850 Savings deposits: Interest rates on 55, 131, 207, 315, 415, 509, 586, 665, 797, 907, 997, 1113 Payment of interest on. (See Interest on deposits.) Seale, Ford, elected Class A Director, Federal Reserve Bank of Dallas 7 Seasonal variations in money in circulation. . 641-644 Securities: Loans on, by member banks: All banks on call dates: Mar. 29, 1939 489 June 30, 1939 728 Monthly table 48, 124, 200, 308, 408, 502, 579, 658, 790, 900, 990, 1106 Reporting banks: All banks, N. Y. C. and outside N. Y. C, monthly and Wednesday figures 50, 126, 202, 310, 410, 504, 581, 660, 792, 902, 992, 1108 By districts and for Chicago, Wednesday figures 52, 128, 204, 312, 412, 506, 583, 662, 794, 904, 994, 1110 1173 Page Securities—Continued. Market, Discussion of 171, 243, 355, 628-630 New issues. (See Capital issues.) Prices: National summary 358 Principal countries 86, 162, 238, 348, 449, 543, 621, 702, 833, 943, 1033, 1149 United States 57, 133, 209, 317, 417, 511, 588, 667, 799, 909, 999, 1115 Purchased by foreigners: July-Sept., 1938 34 Oct.-Nov., 1938 186 1938 292-293 Description of tables 284-287 Discussion of 96 Monthly table 438, 532, 610, 690, 822, 932, 1022, 1138 United States Government. (See United States Government securities.) Shipments and receipts of United States paper currency. (See Paper currency: Shipments and receipts.) Short-term foreign assets of banks in United States: July-Sept., 1938 35 Oct.-Nov., 1938 187 1938 296 Description of tables 284-287 Monthly table 439, 533, 611, 691, 823, 933, 1023, 1139 Short-term foreign liabilities of banks in United States: July-Sept., 1938 35 Oct.-Nov., 1938 187 1938 295 Description of tables 284-287 Monthly table 439, 533, 611, 691, 823,933,1023,1139 Silver. Circulation 45, 121, 197, 305, 405, 499, 576, 655, 787, 897, 987, 1103 Newly mined domestic silver: Act providing for coinage of 638 Presidential proclamations 105, 723 Regulations governing. . . .105-108, 638, 724 Production index: Adjusted 63, 139, 215, 323, 423, 517, 594, 673, 805, 915, 1005, 1121 Unadjusted 64, 140, 216, 324, 424, 518, 595, 674, 806, 916, 1006, 1122 Silver certificates: Circulation 45, 121, 197, 305, 405, 499, 576, 655, 787, 897, 987, 1103 Smith, Walter W., reelected President of Federal Advisory Council 172 Social security: Act made applicable to member banks 723 Receipts, withdrawals and benefit payments 59, 135, 211, 319, 419, 513, 590, 669, 801, 911, 1001, 1117 South Africa: 84, 160, 236, 346, Foreign exchange rates . 447, 541, 619, 700, 831, 941, 1031, 1147 Gold production 75, 151, 227, 337, 435, 529, 607, 687, 819, 929, 1019, 1135 Reserve Bank: Condition 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1027, 1143 Discount rates 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Gold reserves 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 1174 INDEX TO VOLUME 25 Page Spain: Bank of: Discount rates 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Gold reserves 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 Foreign exchange rates 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Gold movements to and from U. S. . . . 46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Stabilization fund: Act extending powers relating to 638 Stabilization of prices: Board of Governors statement on 255-259, 461 Stanley, J. R., elected Class B Director, Federal Reserve Bank of St. Louis 7 State banks: Assets and liabilities: Sept. 28, 1938 27 Dec. 31, 1938 385 Mar. 29, 1939 566 June 30, 1939 . 973 Federal Reserve membership requirement for State insured banks repealed 559 Number of: Sept. 28, 1938 27 Dec. 31, 1938 385 Mar. 29, 1939 566 June 30, 1939 973 State laws: Branch banking 851-870 State member banks: Banking offices: 1933-1939 109, 477, 1065 Branches: 1933-1939 109, 477, 1065 Dec. 31, 1938, by States 479 1938 changes 110 Jan.-Mar., 1939 changes 478 Jan.-Sept., 1939 changes 1066 Condition on call dates: Dec. 31, 1938 264 Mar. 29, 1938 488-489 June 30, 1939 727-728 Deposits, call dates 47, 123, 199, 307, 407, 501, 578, 657, 789, 899, 989, 1105 Earnings and expenses: 1938 374, 378-379 Jan.-June, 1939 875 Group banks, Dec. 31, 1938 480 Number of: 1933-1939 109, 477, 1065 1938 changes , 110 Jan.-Mar., 1939 changes 478 Jan.-Sept., 1939 changes 1066 Monthlv table 47, 123, 199, 307, 407, 501, 578, 657, 789, 899, 989, 1105 Operating branches: Dec. 31, 1938, by States 479 Regulation H, revised 1054-1064 Suspensions 46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 States and political subdivisions: Obligations of, owned by member banks: Dec. 31, 1938 264 Mar. 29, 1939 489 June 30, 1939 728 Public fund deposits: Member bank holdings: All banks on call dates: Dec. 31, 1938 264 Page States and political subdivisions—Continued. Public fund deposits—Continued. Member bank holdings—Continued. All banks on call dates—Continued. Mar. 29, 1939 488 June 30, 1939 727 Monthly table 49, 125, 201, 309, 409, 503, 580, 659, 791, 901, 991, 1107 Reporting banks: All banks, N. Y. C, and outside N. Y. C, monthly and Wednesday figures 311, 411, 505, 582, 661, 793, 903, 993, 1109 By districts and for Chicago, Wednesday figures 313, 413, 507, 584, 663, 795, 905, 995, 1111 Steagall, Henry B.: Address at 25th anniversary of signing of Federal Reserve Act 14 Steel. (See Iron and steel.) Stock exchange: Customers' debit balances, etc., of firms carrying margin accounts. . 54, 130, 206, 314, 414, 508, 585, 664, 796, 906, 996, 1112 Discount rates on loans 56, 132, 208, 316, 416, 510, 587, 666, 798, 908, 998, 1114 Stocks registered, Jan. 31, 1939 173 Volume of trading on N.Y.S.E 57, 133, 209, 317, 417, 511, 588, 667, 799, 909, 999, 1115 Stocks: Collateral loans on. (Ruling.) 362 Member bank holdings: Dec. 31, 1938 264 Mar. 29, 1939 489 June 30, 1939 728 New issues. (See Capital issues.) Prices: Charts 629, 841 Discussion of 629, 840 Principal countries 86, 162, 238, 348, 449, 543, 621, 702, 833, 943, 1033, 1149 United States 57, 133, 209, 317, 417, 511, 588, 667, 799, 909, 999, 1115 Stone, James C, appointed Class C Director, Federal Reserve Bank of Cleveland 7 Stone and clay products: Factory employment indexes: Adjusted 65, 141, 217, 325, 425, 519, 596, 675, 807, 917, 1007, 1123 Unadjusted 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Factory payrolls indexes 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Straits Settlements: Foreign exchange rates 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Stroud, E. B., appointed First Vice President, Federal Reserve Bank of Dallas 554 Summary of financial and business statistics . 11, 100, 177, 252, 360, 465, 558, 635, 718, 849, 960, 1053 Supervision of banks. (See Bank supervision.) Surplus : Member banks: Dec. 31, 1938 264 Mar. 29, 1939 488 June 30, 1939 727 Suspensions, Bank. (See Banks: Suspensions.)f INDEX TO VOLUME 25 1175 Page Page Sweden: Bank of: Condition 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1027, 1143 Discount rates 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Gold reserves 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 Foreign exchange rates 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Gold movements to and from U. S.. .46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Money rates 81, 157, 233, 343, 445, 538, 616, 696, 828, 938, 1028, 1144 Switzerland: Cost of living index 86, 162, 238, 348, 449, 543, 621, 702, 833, 943, 1033, 1149 Foreign exchange rates 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Gold imports and exports 76, 152, 228, 338, 436, 530, 608, 688, 820, 930, 1020, 1136 Gold movements to and from U. S. 46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Money rates 81, 157, 233, 343, 445, 538, 616, 696, 838, 938, 1028, 1144 Retail food price index 86, 162, 238, 348, 449, 543, 621, 702, 833, 943, 1033, 1149 Swiss National Bank: Annual report, 1938 387-391 Condition 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1027, 1143 Discount rates 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Gold reserves 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 Wholesale price indexes 85, 161, 237, 347, 448, 542, 620, 701, 832, 942, 1032, 1148 Tax receipts, U. S. Treasury. (See Treasury finance: Receipts.) Taxation of banks: Social Security Act made applicable to member banks 723 Taylor, Jay, appointed Deputy Chairman, Federal Reserve Bank of Dallas 7 Teagle, W. C , reelected Class B Director, Federal Reserve Bank of New York 7 Tennessee Valley Authority: Assets and liabilities 60, 136, 212, 320, 420, 514, 591, 670, 802, 912, 1002, 1118 Government's proprietary share in 366 Terborgh, George 731 Term loans: Survey of term loans to commercial and industrial concerns 560-562 Textiles: Factory employment index: Adjusted 65, 141, 217, 325, 425, 519, 596, 675, 807, 917, 1007, 1123 Unadjusted 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Factory payrolls index 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Prices, Discussion of 952 Production index: Adjusted 63, 139, 215, 323, 423, 517, 594, 673, 805, 915, 1005, 1121 Unadjusted 64, 140 ,216, 324, 424, 518, 595, 674, 806, 916, 1006, 1122 Wholesale price index 71, 147, 223, 331, 431, 525, 602, 681, 813, 923, 1013, 1129 Thomas, J. J.: Appointed Deputy Chairman, Federal Reserve Bank of Kansas City 7 Reappointed Class C Director, Federal Reserve Bank of Kansas City 7 Thompson, Otis A., reelected Class A Director, Federal Reserve Bank of New York 6 Tobacco: Crop reports 72, 682, 814, 924, 1014, 1130 Manufactures: Factory employment index: Adjusted 65, 141, 217, 325, 425, 519, 596, 675, 807, 917, 1007, 1123 Unadjusted 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Factory payrolls index . 6 7 , 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Production index: Adjusted 63, 139, 215, 323, 423, 517, 594, 673, 805, 915, 1005, 1121 Unadjusted 64, 140, 216, 324, 424, 518, 595, 674, 806, 916, 1006, 1122 Transportation equipment: Factory employment index: Adjusted 65, 141, 217, 325, 425, 519, 596, 675, 807, 917, 1007, 1123 Unadjusted 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Factory payrolls index 67, 143, 219, 327, 427, 521, 598, 677, 809, 919, 1009, 1125 Production indexes: Adjusted 63, 139, 215, 323, 423, 517, 594, 673, 805, 915, 1005, 1121 Unadjusted 64, 140, 216, 324, 424, 518, 595, 674, 806, 916, 1006, 1122 Treasury cash and deposits with Federal Reserve banks. (See United States Government deposits: Federal Reserve banks.) Treasury currency outstanding: End of month and Wednesday figures . 3 8 , 114, 190, 298, 398, 492, 569, 648, 780, 890, 980, 1096 End of month figures 45, 121, 197, 305, 405, 499, 576, 655, 787, 897, 987, 1103 Treasury finance: Deficit 59, 135, 211, 319, 419, 513, 590, 669, 801, 911, 1001, 1117 Discussion of 1-6, 243, 627-628, 710, 712 Expenditures: Discussion of 4-6, 627-628 Monthly table 59, 135, 211, 319, 419, 513, 590, 669, 801, 911, 1001, 1117 General fund balance . . .59, 135, 211, 319, 419, 513, 590, 669, 801, 911, 1001, 1117 Guaranteed obligations 58, 134, 210, 318, 418, 512, 589, 668, 800, 910, 1000, 1116 Public debt: Changes in 2, 627 Gross debt. .58, 134, 210, 318, 418, 512, 589, 668, 800, 910, 1000, 1116 Interest bearing: Chart 2 Monthly table. . .58, 134, 210, 318, 418, 512, 589, 668, 800, 910, 1000, 1116 Interest on: Discussion of 2,3 Monthly table. . .59, 135, 211, 319, 419, 513, 590, 669, 801, 911, 1001, 1117 Maturities: Discussion of 2, 628 1176 INDEX TO VOLUME 25 Page Page Treasury finance—Continued. Public debt—Continued. Maturities—Continued. Monthly table. . .58, 134, 210, 318, 418, 512, 589, 668, 800, 910, 1000, 1116 Noninterest bearing 58, 134, 210, 318, 418, 512, 589, 668, 800, 910, 1000, 1116 Receipts: Discussion of 4-5, 627 Monthly table 59, 135, 211, 319, 419, 513, 590, 669, 801, 911, 1001, 1117 Treasury notes of 1890: Circulation 45, 121, 197, 305, 405, 499, 576, 655, 787, 897, 987, 1103 Trust Indenture Act of 1939, Note on 851 Trust powers of national banks: Investment of funds: Amendments to Regulation F 1054 Deposit of funds in own savings department. (Ruling.) 12 Turkey: Central Bank of: Condition . .78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1027, 1143 Discount rate . .82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Gold reserves . .74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 Foreign exchange rates 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Union of Soviet Socialist Republics: Bank of: Discount rate 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Gold production 75, 151, 227, 337, 435, 529, 607, 687, 819, 929, 1019, 1135 United Kingdom: Bank of England: Condition 77, 153, 229, 339, 440, 534, 612, 692, 824, 934, 1024, 1140 Discount r a t e : Changes in 829, 939, 1029 Monthly table . 8 2 , 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Gold reserves 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 Gold transferred to British Fund . . . 91-92 Banking and financial legislation: Feb. 28, 1939. Currency and Bank Notes Act, 1939 271 Commercial banks 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Cost of living index 86, 162, 238, 348, 449, 543, 621, 702, 833, 943, 1033, 1149 Economic controls: Exports and imports 1044 Internal controls 1044-1045 Economic situation, Discussion of 553-554 Exchange Equalization Account: Bank of England transfer of gold to. 91-92 Borrowing power limit removed . 1041 Gold reserves 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 Foreign exchange rates: Discussion of 842, 1040 Monthly table 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Foreign exchange regulations 1039-1041 Gold imports and exports . . . 76, 152, 228, 338, 436, 530, 608, 688, 820, 930, 1019, 1135 United Kingdom—Continued. Gold movements to and from U. S 46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Money rates 81, 157, 233, 343, 445, 538, 616, 696, 828, 938, 1028, 1144 Retail food price index 86, 162, 238, 348, 449, 543, 621, 702, 833, 943, 1033, 1149 Security prices 86, 162, 238, 348, 449, 543, 621, 702, 833, 943, 1033, 1149 Tax measures, Discussion of 1045 Treasury expenditures, Discussion of 1045 Wholesale price indexes . . . 85, 161, 237, 347, 448, 542, 620, 701, 832, 942, 1032, 1148 United States Government credit agencies. (See Governmental corporations and credit agencies.) United States Government debt. (See Treasury finance: Public debt.) United States Government deposits: Federal Reserve banks: All banks combined, end of month and Wednesday figures . . . 38, 114, 190, 298, 398, 492, 569, 648, 780, 890, 980, 1096 Each bank, Wednesday figures . 4 0 , 116, 192, 300, 400, 494, 571, 650, 782, 892, 982, 1098 Member bank holdings: All banks on call dates: Dec. 31, 1938 264 Mar. 29, 1939 488 June 30, 1939 727 Monthly table . 49, 125, 201, 309, 409, 503, 580, 659, 791, 901, 991, 1107 Reporting banks: All banks, N. Y. C. and outside N. Y. C , monthly and Wednesday figures. 51, 127, 203. 311, 411, 505, 582, 661, 793, 903, 993, 1109 By districts and for Chicago, Wednesday figures 53, 129, 205, 313, 413, 507, 584, 663, 795, 905, 995, 1111 United States Government insurance agencies. (See Insurance agencies of United States Government.) United States Government securities: Bonds: Member bank holdings: All banks on call dates: Dec. 31, 1938 264 Mar. 29, 1939 489 June 30, 1939 728 Monthly table 308, 408, 502, 579, 658, 790, 900, 990, 1106 Reporting banks: All banks, N. Y. C. and outside N. Y. C , monthly and Wednesday figures . . . . 310, 410, 504, 581, 660, 792, 902, 992, 1108 By districts and for Chicago, Wednesday figures 312, 412, 506, 583, 662, 794, 904, 994, 1110 Prices . . 57, 133, 209, 317, 417, 511, 588, 667, 799, 909, 999, 1115 Yields. .. .56, 132, 208, 316, 416, 510, 587, 666, 798, 908, 998, 1114 Collateral security for Federal Reserve notes until June 30, '1941. 637 INDEX TO VOLUME 25 Page United States Government securities—Continued. Federal Reserve bank holdings: All banks combined, end of month and Wednesday figures 38, 114, 190, 298, 398, 492, 569, 648, 780, 890, 980, 1096 Discussion of 630, 710, 839, 1049 Each bank, Wednesday figures. . . .40, 116, 192, 300, 400, 494, 571, 650, 782, 892, 982, 1098 Maturity distribution. . .39, 115, 191, 299, 399, 493, 570, 649, 781, 891, 981, 1097 Guaranteed obligations: Member bank holdings: All banks on call dates: Dec. 31, 1938 264 Mar. 29,1939 489 June 30,1939 728 Monthly table 48, 124, 200, 308, 408, 502, 579, 658, 790, 900, 990, 1106 Reporting banks: All banks, N. Y. C. and outside N. Y. C, monthly and Wednesday figures. . . .310, 410, 504, 581, 660, 792, 902, 992, 1108 By districts and for Chicago, Wednesday figures . . . 312, 412, 506, 583, 662, 794, 904, 994, 1110 Outstanding, by agencies. . 58, 134, 210, 318, 418, 512, 589, 668, 800, 910, 1000, 1116 Holdings by types of investors 3-4 Interest rates on 2, 3 Issued directly to Government agencies and trust funds 3 Market, Discussion of. . .171, 243, 628, 847, 1049 Member bank holdings: All banks on call dates: Dec. 31, 1938 264 Mar. 29, 1939 489 June 30, 1939 728 Maturity distribution 489, 728 Monthly table 48, 124, 200, 308, 408, 502, 579, 658, 790, 900, 990, 1106 Discussion of 354, 631, 839 Reporting banks: All banks, N. Y. C. and outside N. Y. C, monthly and Wednesday figures 50, 126, 202, 310, 410, 504, 581, 660, 792, 902, 992, 1108 By districts and for Chicago, Wednesday figures 52, 128, 204, 312, 412, 506, 583, 662, 794, 904, 994, 1110 Treasury bills: Discount rates on 56, 132, 208, 316, 416, 510, 587, 666, 798, 908, 998, 1114 Federal Open Market Committee statement on reduction of holdings 630 Federal Reserve bank holdings: Discussion of 630, 710 Member bank holdings: All banks on call dates: Mar. 29, 1939 489 June 30, 1939 728 Monthly table 308, 408, 502, 579, 658, 790, 900, 990, 1106 1177 Page United States Government securities—Continued. Treasury bills—Continued. Member bank holdings—Continued. Reporting banks: All banks, N. Y. C. and outside N. Y. C, monthly and Wednesday figures ..'310, 410, 504, 581, 660, 792, 902, 992,1108 By districts and for Chicago, Wednesdav figures . 3 1 2 , 412, 506, 583, 662, 794, 904, 994, 1110 Treasury notes: Member bank holdings: All banks on call dates: Mar. 29, 1939 489 June 30, 1939 728 Monthly table 308, 408, 502, 579, 658, 790, 900, 990, 1106 Reporting banks: All banks, N. Y. C. and outside N. Y. C , monthly and Wednesday figures. 310, 410, 504, 581, 660, 792, 902, 992, 1108 By districts and for Chicago, 'Wednesday figures 312, 412, 506, 583, 662, 794, 904, 994, 1110 Yields 56, 132, 208, 316, .416, 510, 587, 666, 798, 908, 998, 1114 Yields on, Chart of 3 United States Housing Authority: Assets and liabilities 60, 136, 212, 320, 420, 514, 591, 670, 802, 912, 1002, 1118 Guaranteed obligations outstanding. . .318, 418, 512, 589, 668, 800, 910, 1000, 1116 Summary of operations, 1938 365-369 United States Maritime Commission: Loans outstanding, Dec. 31, 1938 366, 371 United States notes: Circulation 45, 121, 197, 305, 405, 499, 576, 655, 787, 897, 987, 1103 United States Treasurer: General account on deposit in Federal Reserve banks. (See United States Government deposits: Federal Reserve banks.) Uruguay: Bank of: Condition 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1027, 1143 Gold reserves 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 Foreign exchange rates 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 Venezuela: Gold movements to and from U. S. 46, 122, 198, 306, 406, 500, 577, 656, 788, 898, 988, 1104 Volkmann, W. G., reelected Class B Director, Federal Reserve Bank of San Francisco 7 Wages and hours of labor: Chart 458 Discussion of 458 Wagner, Robert F . : Letter on 25th anniversary of signing of Federal Reserve Act 14 Wald, Haskell 871 War effects on American markets 839-845 1178 INDEX TO VOLUME 25 Page Wayne, Joseph, Jr., reelected Class A Director, Federal Reserve Bank of Philadelphia 6 West Africa: Gold production 75, 151, 227, 337, 435, 529, 607, 687, 819, 929, 1019, 1135 Wheat crop reports 72, 682, 814, 924, 1014, 1130 White, G. J., reelected Class A Director, Federal Reserve Bank of Atlanta 6 Wholesale commodity prices. (See Prices: Wholesale commodity.) Williams, Alfred H., appointed Class C Director, Federal Reserve Bank of Philadelphia 248 Williams, F. D., reelected Class A Director, Federal Reserve Bank of Chicago 7 Wood, R. E.: Reappointed Class C Director, Federal Reserve Bank of Chicago 7 Reappointed Deputy Chairman, Federal Reserve Bank of Chicago 7 Wysor, W. G., reappointed Deputy Chairman, Federal Reserve Bank of Richmond .. 7 Young, Owen D., redesignated Chairman and Federal Reserve Agent, New York 7 Yugoslavia: Foreign exchange rates 84, 160, 236, 346, 447, 541, 619, 700, 831, 941, 1031, 1147 National Bank of: Condition 78, 154, 230, 340, 441, 535, 613, 693, 825, 935, 1027, 1143 Discount rates 82, 158, 234, 344, 445, 539, 617, 697, 829, 939, 1029, 1145 Gold reserves 74, 150, 226, 336, 434, 528, 606, 686, 818, 928, 1018, 1134 Zinc production index: Adjusted 63, 139, 215, 323, 423, 517, 594, 673, 805, 915, 1005, 1121 Unadjusted 64, 140, 216, 324, 424, 518, 595, 674, 806, 916, 1006, 1122 FEDERAL RESERVE DISTRICTS MINN. MINNEAPOLIS S.DAK. KANSAS CITY KANS. -/ ! ! -2 Oklahoma City ^ t _ j^ mmmm BOUNDARIES OF FEDERAL RESERVE DISTRICTS .-.— ® • O BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES (APPROXIMATE IN THE ST. LOUIS DISTRICT) FEDERAL RESERVE BANK QTIES. FEDERAL RESERVE BRANCH CITIES FEDERAL RESERVE BANK AGENCY DALLAS® TEXAS ^ /— Little#Rock/ MTSS