Full text of Federal Reserve Bulletin : February 1916
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FEDERAL RESERVE BULLETIN ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON FEBRUARY, 1916 WASHINGTON GOVERNMENT PRINTING OFFICE 1916 FEDERAL RESERVE BOARD. EX OFFICIO MEMBERS. WILLIAM G. MCADOO, Secretary of the Treasury, Chairman. JOHN SKELTON WILLIAMS, Comptroller of the Currency. CHARLES S. HAMLIN, Governor. FREDERIC A. DELANO, Vice Governor. PAUL M. WARBURG. W. P. G. HARDING. ADOLPH 0. MILLER. H. PARKER WILLIS, Secretary. SHERMAN ALLEN, AssistantlSecretary. M. 0. ELLIOTT, Counsel. SUBSCRIPTION PRICE OF BULLETIN. The Federal Reserve Bulletin is distributed without charge to member banks of the system and to the officers and directors of Federal Reserve Banks. In sending the Bulletin to others the Board feels that a subscription should be required. It has accordingly fixed a subscription price of $2 per annum. Single copies will be sold at 20 cents. Foreign postage should be added when it will be required. Remittances should be made to the Federal Reserve Board. Member banks desiring to have the Bulletin supplied to their directors may have it sent to not less than ten names at a subscription price of $1 per year. in TABLE OF CONTENTS. Page. Work of the Board, . Class 0 directors appointed : Meeting of governors of Federal Reserve Banks.. Bound copies of Bulletin Settlement of clearing-house balances Receipts and disbursements of Federal Reserve Board Earnings and expenses of Federal Reserve Banks Gold-settlement fund ,... Informal rulings of the Federal Reserve Board Agricultural-implement paper Forms for reporting earnings and expenses Table showing holidays in reserve-bank cities Fiduciary poweis granted •„ .• Intradistrict clearing system, additions to and withdrawals from Law department. Business conditions throughout the 12 Federal Reserve Districts Distribution of discounts Acceptances. Federal Reserve Bank statements Gold imports and exports Capital and reserve deposits IV ... ... 51 52 52 53 53 54 56 60 64 67 68 68 70 70 71 75 86 91 93 96 98 FEDERAL RESERVE BULLETIN VOL. 2 FEBRUARY 1, 1916 WORK OF THE BOARD. During the month of January the Federal Reserve Board has continued the preparation of its annual report to Congress, and has compiled full data regarding the work of the several Federal Reserve Banks during the past year. These data will be embodied in appendices supplementary to the annual report, which is now practically ready for publication. Selection of additional class C directors, in order to complete the directorates of the several banks, has also been necessary, there being a number of vacancies not filled at the close of December, some having also occurred since that date. The directorates are now complete for the year 1916, except in so far as future vacancies not now foreseen may occur. Elsewhere in this issue is furnished a complete list of the new class C directors. It has been determined that henceforward Federal Reserve Agents and deputy Federal Reserve Agents shall be designated as such from year to year, their terms as directors being three years under the statute, but their designation in their official capacity being made from year to year, thereby affording greater flexibility and latitude, and securing more effective service in cases where vacancies occur before the expiration of a given term. In the same way it has been arranged that Federal Reserve Banks shall annually submit to the Board schedules of their staffs and salaries for approval, thereby placing members of such staffs practically upon a basis of appointment for terms not to exceed one year. The understanding is that within the year's period thus fixed the officers and employees of the banks shall hold office subject to the pleasure of the several boards of directors, but that the confirmation of the staffs, with their salaries, by the Federal Reserve Board, shall occur annually. This, of course, would be a pro forma matter so far as regards the ordinary routine or administrative appointments. Paralleling this decision, the Board No. 2 has voted that it will annually consider and confirm the salaries of national bank examiners, making report of the same to Congress each year, under the terms of the Federal Reserve Act, such determination being considered to be a compliance with the spirit of the law regarding the examination staff. As a result of the resolutions passed by the Board during the month of January, changes have occurred in the Federal Advisory Council, the Governors of Federal Reserve Banks who were formerly members of that body having been replaced by other representatives elected by their respective boards of directors. In addition to the changes thus necessitated, one or two other changes of personnel have also occurred in the Advisory Council. Due to the delay incidental to effecting these changes and giving the usual notice thereof, the Advisory Council determined to defer its regular statutory meeting, which would otherwise have occurred on January 19, until February 15. During the past month many inquiries have been received with respect to the question of refunding outstanding United States 2 per cent bonds bearing the circulation privilege into 3 per cent bonds. Numerous applications have been received from member banks desirous of converting at par under the $25,000,000 limit provided under section 18 of the Federal Reserve Act, while Federal Reserve Banks have presented plans for the exchange and steady conversion of the bonds in question. The fact that the subject had thus presented itself in practical form led to a reopening of the matter, and the Treasury Department has for the past few weeks given detailed legal and financial investigation to the whole problem. The situation has also been carefully discussed by the Board itself, and it is expected that within a very short time the details of the policy to be pursued in regard to this refunding, both in so far as affects the Treasury Department and the Board as well, will be made known. 51 52 FEDERAL RESERVE BULLETIN. . A conference with tlie Governors of Federal Reserve Banks was held in Washington on January 20, the purpose of the conference being discussion of various phases of administration on which joint and harmonious action appeared to be demanded. Class C Directors Appointed. Following is a list of Class C directors named by the Federal Reserve Board to fill vacancies caused by expiration of term of office, resignations/etc.: Boston.—Allen Hollis. New York.—George Foster Peabody. Designated as Deputy Federal Reserve Agent, in place of Charles Starek, disqualified because a national bank examiner. Mr. Starek continues as a Class C director. Philadelphia.—Vance C. McCormick. Geo. W. Norris designated as Deputy Federal Reserve Agent, vice George La Monte, resigned. Cleveland,—H. P, Wolfe. Richmond.—M. F. EL Gouverneur. Atlanta.—Edward T. Brown. Chicago.—E. T. Meredith. St. Louis.—William McC. Martin. :Minneapolis.—William Hi Lightner. Designated as Deputy Federal Reserve Agent, vice P . M . Kerst, whose term expired December 31, 1915. Kansas City.—R. H. Malone, F. W. Fleming. Mr. Fleming was designated as Deputy Federal Reserve Agent, vice A. E. Ramsey, resigned. In this district J, Z. Miller, formerly Federal Reserve Agent, was named as Governor, and Charles M. Sawyer, formerly Governor, was named as Federal Reserve Agent. Dallas.—William F. Ramsey. Designated as Federal Reserve Agent, vice E. O. Tenison, resigned. Qan Francisco.—Walton Moore. Appointed to succeed Charles E. Peabody, resigned. Designated as Deputy Federal Reserve Agent, in place of Claud Gatch, disqualified because a national bank examiner. Mr. Gatch continues as a Class C director. Bulletin to Bank Directors. Considerati6n has been given to a request that the Bulletin be supplied to all directors of member banks. It is found that this would increase the cost to an extent not felt to be warranted. Member banks which desire to have the Bulletin supplied to their directors will, however, be given a rate of $1 per year for lists of not less than 10 names forwarded at the same tiine. FEBRUARY 1, 1916. Governors of Banks Meet. Governors of Federal Reserve Banks gathered in Washington for the exchange of ideas and discussion of problems of operation on January 19 and remained during the 20th and 21st. The trend of the discussion is indicated in the following press notice, which was issued by the Governors on Saturday, January 22: The Sixth Conference of the Governors of the Federal Reserve Banks was held at the Shoreham Hotel, Washington, D. C, January 19 to 21, inclusive. The following Governors were present: Benjamin Strong, jr., Federal Reserve Bank of New York; J. B. McDougal, Federal Reserve Bank of Chicago; A. L. Aiken, Federal Reserve Bank of Boston; C. J. Rhdads, Federal Reserve Bank of Philadelphia; A. C. Eains, Federal Reserve Bank of San Francisco; Geo. J. Seay, Federal Reserve Bank of Richmond; R. L. Van Zandt, Federal Reserye Bank ol Dallas; E. R. Fancher, Federal Reserve Bank of Cleveland; Theo. Wold, Federal Reserve Bank of Minneapolis; J. C. McCord, Federal Reserve Bank of Atlanta; Roilo Wells, Federal Reserve Bank of St. Louis; J . Z . Miller, Federal Reserve Bank of Kansas City; J. F. Curtis, counsel, Federal Reserve Bank of New York. Conferences were held with the Federal Reserve Board and with the Federal legislative committee and the executive committee of the National Bank Section of the American Bankers7 Association, but no action was taken upon any of the subjects submitted for discussion by the committees of the American Bankers' Association, this conference having been arranged for an exchange of views upon matters relating to the development of the Federal Reserve System. Among the topics discussed at the meeting of Governors were the following: Collections and clearances; fiscal agency functions for the United States Government and the details of accounting, etc., in that connection; openmarket operations, including a discussion of domestic acceptances, "trade acceptances, and Government bonds; the gold settlement fund, including methods of accounting, audit, and transfers; methods of accounting, including method of calculating dividend payments; statistics; reserves of member banks; issues of Federal Reserve notes; Government bond purchases and conversions. The meeting adjourned, subject to call, without setting any time or place for holding the next meeting. FEBRUARY 1, 1916. FEDEBAL BESEBVE BULLETIN. Bound Copies of Bulletin. Many inquiries have been received by tlie Federal Reserve Board for bound copies of the Federal Reserve Bulletin for 1915. The Board is^not in a position to supply these volumes. Itptias had a very few copies bound, but only a sufficient number for the use of the members of the|Board and its officers in Washington. The June number of the Bulletin is practically exhausted. Copies of the June number should be carefully preserved. Clearing-House Balances. This^memorandum on the settlement of clearing-house balances was submitted to the Federal Reserve Board on January 4 and was approved: With one exception Federal Reserve Banks have the privilege of presenting items for payment through the local clearing house. In each city daily clearings are made and the rules call for a daily settlement of debit balances. In some Federal Reserve cities, however, as a matter of practice, daily settlements are hot insisted upon, but are a matter of arrangement between the debtor and creditor banks. A Federal Reserve Bank should not be a party to deferred settlements. If a member bank requires a temporary advance, a means is provided through the rediscount privilege. It is respectfully recommended that the Federal Reserve Banks be advised that, in the opinion of the Federal Reserve Board, debit balances arising out of transactions with clearing-house members should be settled daily, either in cash, by credit on the books of the Federal Reserve Bank, or in exchange acceptable to the creditor bank. Balances due to the Federal Reserve Bank should be settled daily, either in cash, by debit on the books of the Federal Reserve Bank, or in acceptable exchange on other cities. Certificates of indebtedness issued by the manager of a clearing house, or cashiers7 checks which are given in exchange thereof, should be presented for payment and settled for on the day of issue. 53 has been received by the Board from the Federal Reserve Banks: District No. 1, Boston—Daniel G. Wing, Boston, Mass. District No. 2, New York—J. P. Morgan, New York City. District No. 3, Philadelphia—Levi L. Rue, Philadelphia, Pa. District No. 4, Cleveland—W. S. Rowe, Cincinnati, Ohio. District No. 5, Richmond—J. W. Norwood, Greenville, S. C. District No. 6, Atlanta—Charles A. Lyerly, Chattanooga, Tenn. District No. 7, Chicago—J. B. Porgan, Chicago, 111. District No. 9, Minneapolis—C. T. Jaffray, Minneapolis, Minn. District No. 10, Kansas City—E. F. Swinney, Kansas City, Mo. District No. 11, Dallas—T. J. Record, Paris, Tex. District No. 12, San Francisco—Herbert Fleishhacker, San Francisco, Cal. Subscriptions to Bulletin* A few days ago the Federal Reserve Board received a check for $38 from the president of a leading trust and savings bank in the Middle West, with the request that the Federal Reserve Bulletin be sent for one year to 19 business men of his acquaintance. In requesting that the subscriptions be entered, the writer gave as his reason for sending the subscriptions that he was impressed with the value of the Bulletin to all business men who are interested in keeping abreast of business and financial conditions. Statement for the Press. There have been sent to the Federal Reserve Board from Federal Reserve Banks and various member banks of the system copies of an anonymous circular which is being sent out from Philadelphia to member banks of the Federal Reserve System, headed " Failure to comply with regulations." The circular quotes the last paragraph of section 9 of the Act which permits the Federal Reserve Board to require the surrender of stock and return cash-paid subscriptions with interest* The Federal Reserve Board has not sent out Members of Advisory Council. this circular and has no knowledge of its source. There is given below a list of members of the It appears to be the intent of those issuing it Federal Advisory Council of the Federal Re- to create prejudice against the Federal Reserve serve Board, notice of the election of whom Act and the Federal Reserve Board. 54 FEDERAL RESERVE BULLETIN. FEBRUARY 1, 1916. RECEIPTS AND DISBURSEMENTS OF FED- either by the Board or the Committee on Budget and Expenditures and the secretary of ERAL RESERVE BOARD. the Board. There is here given a detailed account of RECEIPTS. receipts and expenditures by the Federal Unexpended balance Jan. 1,1915. $139,169.80 Reserve Board. The expenses of the Reserve Second assessment (made July 1, 1915) 108,283.64 Bank Organization Committee were paid from Reimbursements..' 528.07 521.84 an appropriation of $100,000 made by Congress. Bulletin, subscriptions to Of this appropriation there is a balance of Total available.... 248,503.35 $17,708.15 unexpended. * DISBURSEMENTS. Under the Federal Reserve Act the Federal Reserve Board is authorized to make semi- By Governor of Board (Jan. 1 to Feb. 12,1915). 18,478.26 By fiscal agent (Feb. 13 to Dec. 31,1915).... 172,731.19 annual assessments upon Federal Reserve Auditors' settlements by transfer (Jan. 1 to Banks to cover its expenses. The first assessDec. 31,1915).. 20,004.13 ment for this purpose was made on November Total disbursements 211,213.58 2, 1914. Balances on hand Dec. 31, 1915, with TreasDisbursements for the Board were, until Feburer of United States to credit of— ruary 12, 1915, made by the Governor of the Fiscal agent $12,268.81 Federal Reserve Board 25,020.96 Board, on which date the moneys of the Board — 37,289.77 were deposited in the Treasury of the United 248,503.35 States to the credit of a special fund, a bonded GENERAL STATEMENT. fiscal agent having been appointed by the Board and authorized to make collections and First assessment, including $239,871.10 for Federal Reserve notes, made Nov. 2,1914. 431,768.40 disbursements. Overpayments first, assessment 106.43 The funds of the Board are carried in a 431,874.83 special account with the Treasurer of the Amount assessed for Federal Reserve notes.. 239,871.10 United States and transfers are made by the Governor of the Board to the credit of the fiscal To credit of general expenses (including $106.34 overpayment) 192,003. 73 agent as necessary. The accounts of the Board Total disbursements to Jan. 1,1915 52,833. 93 pass through the hands of the Auditor for the Unexpended balance Jan. 1», 1916 139,169.80 State and other departments and are given the official examination required by the Govern- To credit general expenses, 1914 192,003. 73 ment. The term "auditor's settlement by Total commitments to Dec. 31, 1914 62,498.08 transfer" under '"DisbursementsJ? covers setUnencumbered balance Jan. 1, 1915.. 129,505.65 tlements made by transfers of credit authorized and directed by the auditor on the books of the Unexpended balance Jan. 1, 1915 139,169.80 Treasury Department. It is used by the Unencumbered balance Jan, 1, 1915 129,505. 65 Unpaid commitments Jan. 1,1915 9,664.15 Federal Reserve Board largely in connection with payments to the Bureau jof Engraving Available funds during 1915 as per statement. 248,503.35 and Printing for the preparation of Federal Unpaid commitments Jan, 1,1915 $9,664.15 207,722. 71 Reserve notes. The term "commitments" Commitments during 1915 217,386.86 where used covers all obligations entered into by the Board. Unencumbered balance Dec. 31,1915. 31,116.49 Telegrams paid for by the Federal Reserve Unpaid commitments Dec. 31, 1915 (estimated) 6,173.28 Board are billed at the Government rate. All payments for the Board are first approved Unexpended balance Dec 31,1915... 37,289.77 Detailed statement of expenses. To and including Dec. 31, 1914. 1915 January. February. March. April. May. June. July. Total for August. September. October. November. December. year 1915. Personal services—Salaries: Board and its c l e1 r k s . . . . . . . $29,765.00 $7,449.98 $7,361.64 $7,333.32 $7,333.31 $7,333.31 $7,333.32 $7,333.31 $7,333.31 $7,333.32 $7,333.31 $7,333.31 $7,333.31 $88,144.75 6,641.09 2,563.87 2,472.92 2,468.32 2,388.32 2,338.32 2,312.77 2,318.32 2,318.32 2,359.98 2,406.15 2,337.21 2,323.32 28,607.82 Secretary's office 1,868.33 Counsel's office 975.00 1,058.33 1,158.33 1,158.33 1,519.44 1,574.99 1,715.82 1,950.00 1,908.34 1,866.66 1,866.66 1,866.67 18,618.57 Division of audit and examination 1,635.01 1,183.33 1,183.33 1,183.33 976.65 1,128.33 1,133.33 1,164.16 1,164.16 1,464.16 1,426.16 1,404.16 1,404.16 14,815.26 Division of reports and statistics. 633.33 602.22 7,128.57 608.33 605.28 476.66 597.50 541.66 610.83 633.33 633.33 558.33 596.66 633.33 Division of issue 651.66 13,361.66 651.66 3,027.87 1,613.68 1,130.01 1,293.36 1,739.31 1,872.66 1,837.68 651.66 616.66 651.66 651.66 50.00 600.00 Telephone operator 93.33 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 Messengers 788.30 315.00 4,605.00 375.00 375.00 405.00 355.00 355.00 425.00 440.00 425.00 355.00 425.00 355.00 117.99 Charwomen.. 720.00 60.00 60.00 60.00 60.00 60.00 60.00 60.00 60.00 60.00 60.00 60.00 60.00 Nonpersonal services—Transportation and subsistence of persons: Board and its clerks Secretary's office i. Division of audit and examination Counsel's office Messengers (car fare) Transportation of things Communication service: Telephone Telegraph Postage Printing, binding, etc Engraving Advertising Contract repairs Electricity Steam (heat) Other (nonpersonal services) Supplies: Stationery Periodicals Other Equipment: Furniture and office equipment.. Books. Office changes and improvements Reimbursable expenditures (including return of overpayments) ... Total 1 44,539.14 14,777.52 14,296.51 14,499.16 14,657.58 15,198.72 15,215.42 14,329.10 14,585.78 86.80 12.00 54.10 288.62 410.37 13.80 46.59 97.44 215.00 28.00 287.70 349.32 538.77 346.42 1,157.11 150.90 21.80 27.22 828.61 5.00 709.59 1,201.61 51.00 3,350.91 58.82 39.15 38.45 60.00 30.00 1,255.93 45.08 140.66 23.50 1,714.96 69.48 239.31 6.67 30.00 15.00 760.91 48.00 30.00 15.00 34.40 .15 30.00 15.00 30.66 15.00 45.00 275.90 90.00 2,040.46 93.25 646.02 209.00 5.25 12.78 58.26 6.00 14.57 181.07 20.40 7.45 219.02 8.00 8.58 449.04 3.60 40.69 117.65 7,088.40 27.00 541.08 283.62 160.24 5.58 105.40 15.00 106.40 25.00 309.23 1.25 401.31 92.85 7.00 '"h'.QO 24589 36.61 226.42 27.50 155.77 7.10 58.80 300.33 2*573.14 250.00 1.72 .24 14,832.27 223.75 116.80 588.69 14.90 671.99 2 43.00 2 250.00 20.00 798.28 2 40.00 2 250.00 1.58 30.00 15.00 15.46 5.00 44.52 2 250.00 67.46 277.20 55.00 1,462.66 62.50 311.23 767. 64 57.69 253.71 20.00 990.63 .50 30.00 6.00 30.00 1.00 30.00 30.00 11.65 30.00 8.00 30.00 93.03 65.71 8.86 17.74 7.15 8.63 88.22 18.00 2.20 93.74 15.00 16.45 440.22 50.64 62.90 6.40 123.85 27.25 7.00 31.12 81.15 2 250.00 14,686.33 987 14,637.45 176,601.63 308.40 1,656.27 41.80 581.34 11.70 5,351.75 53.82 25.00 2.65 2 40.00 2 250.00 30.00 1,649.47 646.29 2,998.86 176.00 12,512.61 257.10 18.35 30.00 15.00 101.90 360.00 90.00 1,221.67 1,662.06 157.11 207.74 5.00 "728.i4 79.14 56.15 8.00 22.43 33.98 305.63 136.31 418.63 72.43 2,768.07 382.07 14.00 3,523.45 31,120.08 18,160.90 207,722.71 346.28 106.43 47.80 56.60 19.30 2.00 115.39 85.79 17,958.94 3,365.86 1,288.05 1,420.74 4,279.31 4,603.33 2,170.08 2,107.55 2,231.09 1,368.85 2,375.30 2,386.47 362,498.08 18,143.38 15,584.56 15,919.90 18,936.89 19,802.05 17,385.50 16,436.65 16,816.87 16,254.64 17,207.57 Correspondence division and division of mail and flies abolished as divisions and made part of secretary's office Dec. 1,1915. a Estimated. *"*5.'66' 5.00 1.49 14,885.79 3 w tei 1 I 433.31 »Annual report for 1914 gave total expenses to Dec. 31, 1914, as $59,229.87. This was necessarily an estimate. The actual payments were $62,498.08. Ox 56 FEDERAL RESERVE BULLETIN. EARNINGS AND EXPENSES OF FEDERAL RESERVE BANKS TO DECEMBER 31, 1915. The following tables show the earnings and current expenses of each of the Federal Reserve Banks and the system as a whole for the past calendar year. Separate tables are given showing amounts charged to organization expenses, cost of Federal Reserve notes, and cost of furniture and equipment for the entire period since organization. The last table gives a recapitulation of earnings and expenses of the banks since organization, the excesses of earnings over current expenses, amounts amortized, dividends declared, also amounts carried to organization expenses, and, lastly, amounts carried to profit and loss. The combined earnings of all the Federal Reserve Banks for the period since organization in November, 1914, to December 31, 1915, are given as $2,193,755, and the current expenses for the same period as $1,677,639, leaving an excess of earnings over current expenses of $516,116. An informal ruling of the Board printed on page 12 of the January Bulletin provided that excesses of current expenses over earnings for the period to December 31, 1915, also the cost of Federal Reserve notes put in circulation by banks whose earnings were insufficient to take care of the cost of such notes in addition to current expenses should be carried to organization expenses upon the closing of the books after December 31, 1915. Accordingly, organization expenses on January 1, 1916, include aggregate deficiencies of earnings to December 31, 1915, of $113,667, the cost of Federal Reserve notes used to December 31, 1916, not offset by current earnings—$105,401; depreciation of furniture and equipment not etiarged to current expenses, $6,752; and, in addition, organisation expenses for the period to Decem- FEBRUARY 1, 1916. her 31, 1915, totaling $380,157. This latter total is made up of $186,168—expenses of the banks prior to opening on November 16, 1914, and $193,989—assessments to defray the expenses of the Board prior to July 1, 1916, From the total of the items named, viz, $605,977, are deducted the amounts covered by the net surplus earnings of five banks, viz, $112,017, which leaves a balance of $493,960 as organization expenses on January 1, 1916. The total cost of Federal Reserve notes, including the cost of transmittal to the banks, was $804,705. Of this total, $157,017 was carried to current expenses and $105,401 to organization expenses upon the closing of the books for the past period, the sum x>i these items, $262,418, representing the cost of used notes; i. e., notes put in circulation by the Federal Reserve banks. The remainder, $542,287, represents the cost of notes not yet put in circulation by the banks. The cost of furniture and equipment to December 31, 1915, is stated as $284,620, upon which a depreciation allowance of $14,628 was made at the close of the year, of which the larger portion, $7,876, was charged to current expenses and the remainder, $6,752, to organization expenses. All the banks except St. Louis and Kansas City made their current expenses in the calendar year 1915, and all the banks except Cleveland, St. Louis, Kansas City, and San Francisco made their current expenses since organization. A 5 per cent dividend, amounting to $151,940, was paid to members by the Richmond Federal Reserve Bank at the end of the calendar year and a dividend, amounting to $65,523, was declared by the Dallas Federal Reserve Bank on January 7, 1916. The Atlanta and Chicago Federal Reserve Banks, while not declaring dividends, show net profits for the period since organization of $82,550 and $20,091, respectively. FEBRUARY 1, 57 FEDERAL RESERVE BULLETIN. 1916. Earnings and current expenses of each of the Federal Reserve Banks during the calendar year 1915. EARNINGS. Boston. New Phila- CleveYork. delphia. land. Richmond. ChiAtlanta. • cago. Bills discounted—members $9,859 $22,855 $17,445 $29,555 $312,907 $227,212 Bills bought—bankers' acceptances..... 49,038 97,135 29,605 11,281. 858 89 Investments: 8,288 15,516 United States bonds. 6,351 57,916 192,520 54,156 55,972 1,541 Warrants 601 201 Commissions received. . 2,402 10,547 9,161 123,782 824 484 Sundry profits 4,609 Total earnings 125,566 332,218 1133,276 113,148 9,98 1,110 Deduct commission paid. 1,540 1,410 Earnings 124,568 331,108 131,736 111,738 St. Minne- Kansas Dallas. San FranLouis. apolis. City. cisco. $76,495 $44,836 $50,489 $62,715 $239,558 Total. $61,707 $1,155,633 24,069 6,387 5,248 7,832 75,591 62,431 7,488 16,325 18,793 20,931 20,631 9,575 3,105 4,148 648 1,505 1,508 78,141, 99,609 101,401 819 771 861 77,370 98,790 100,540 241,987 113,200 2,140,457 9,847 241,987 113,200 2,130,619 1*4 k?,k 314,850 233,652 253,409 2,338 314,850 233,652 251,071 635 289 13,122 244,664 18,431 18,432 171,724 490,689 13,150 64,597 CURRENT E X P E N S E S . Assessment account expenses of Federal Reserve Board since July 1 $9,610 $21,841 $10,523 $11,901 Federal Advisory Council. 1,000 410 343 386 Governors' conferences... 484 1,440 912 774 Federal Reserve Agents' 244 conferences 283 218 267 7 Directors fees., 6,938 2,090 7,340 3,153 1,200 2,250 Legal fees 1,969 2,500 Salaries: 32,050 68,033 32,580 30,083 Bank officers 18,641 66,708 31,309 Clerical staff Special officers and 322 watchmen 1,133 Another Traveling expenses: 1,072 1,174 2,170 Directors... 755 930 Officers and clerks.... 217 1,115 Per diem allowance of 1,370 2,290 1,420 directors 1,068 1,017 1,614 894 Telephone 959 125 190 Telegraph 410 63 1,983 4,228 2,848 3,234 2,167 563 797 1,572 13,400 39,497 Rent. 7,720 Insurance and premiums 2,761 2,298 1,345 1,603 on fidelity bonds Light, heat, and power... 971 1,138 Printing and stationery.. 2,788 16," 782* 3,291 "i,"375 474 Repairs and alterations.. 243 535 40 All other expenses not $6,710 ' 87 851 $4,832 $13,258 902 403 785 895 $5,577 150 931 $4,753 697 1,003 $5,928 297 728 $5,511 1,387 $7,871 951 2,419 $108,315 7,013 11,746 339 3,410 1,924 717 2,970 1,501 169 1,800 2,871 1,320 4,299 44,096 21,960 202 3,260 941 224 4,925 1,304 317 2,430 5,500 422 4,460 25,978 24,730 26,444 24,674 50,000 42,225 51,858 35,164 27,542 25,500 20,745 31,681 32,373 26,255 40,750 24,032 443,191 1,026 1,389 2,484 4,777 3,434 1,650 1,185 2,319 1,146 1,806 113 25,013 7,814 1,951 455 3,579 1,463 1,468 927 1,380 935 953 674 3,854 369 1,866 1,022 168 1,306 22,494 10,168 1,880 306 271 2,911 2,712 2,518 291 504 790 1,170 1,264 767 529 663 4,311 4,892 2,101 690 7,852 25,176 16,725 940 543 274 1,864 345 5,000 3,891 537 359 9,372 4 8,500 1,332 581 346 3,047 5,729 8,405 330 407 203 1,471 220 15,656 18,999 9,180 3,937 43,629 16,908 160,152 1,862 672 4,039 1,780 1,852 91 4,729 107 2,731 1,294 7,507 995 1,822 1,144 68 3,808 507 1,188 986 7,721 87 5,401 178 5,116 667 260 4,875 3,039 24,674 5,658 60,864 8,041 3,153 1,677 3,669 4,244 2,035 3,892 2,912 2,258 50,319 Total current ex102,433 256,342 110,935 108,050 penses... 91,519 96,316 176,965 136,313 80,367 112,401 109,875 109,213 1,490,729 74,106 258,943 18,423 H I , 861 132,112 3,987 639,881 5,028 Excess of earnings over current expenses 22,135 19,350 74,766 1,198 20,801 1 2 3,688 233,331 137,336 4,833 • 136 Including $20,503 appreciation on United States bonds. Deficit of operation. Expenses of the Federal Advisory Council and of the Conferences of the Governors and of the Federal Reserve Agents from date of organization to Dec. SI, 1915. Federal Federal Governors' Reserve Federal Reserve Bank. Advisory conferences. Agents' Council. conferences. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago $410 1,000 374 574 135 403 1,153 $543 1,440 912 911 878 958 948 $283 267 218 244 202 224 317 Total. $1,236 2,707 1,504 1,729 1,215 1,585 2,418 Federal Federal Governors' Reserve Federal Reserve Bank. Advisory conferences. Agents' Council. conferences. St. Louis Minneapolis Kansas City Dallas San Francisco Total Total. $150 848 357 1,387 951 $931 1,181 924 524 2,720 $422 339 717 169 897 $1,503 2,368 1,998 2,080 4,568 7,742 12,870 4,299 24,911 58 FEDERAL RESERVE BULLETIN. FEBRUARY 1, 1916. Organization expenses of the Federal Reserve Banks and the system as a whole. Phila- CleveNew Boston. York. delphia. land. Expenses prior to Nov. 16,1914 . $12,999 $30,967 $13,305 $15,866 Assessment, account expenses Federal Reserve Board prior to July 1, 1915 17,266 41,368 18,396 21,511 Cost of Federal Reserve notes used prior to Jan. 1, 1916, not offset by 9,014 current earnings 2,586 150,000 Deficiency in earnings to 9,383 Dec. 31, 1915.... Depreciation, furniture 1,752 and equipment.. Total 34,603 122,335 Less amounts charged against current earnings to Dec 31,1915.. 31,701 $12,012 11,556 Atlanta. Chicago. $15,255 $16,641 8,342 23,307 St. Minne- Kansas Louis. apolis. City. FranDallas. San cisco. Total. $5,854 , $13,205 $15,699 $14,556 $19,809 $186,168 10,164 13,817 193,989 13,805 7,273 105,401 23,479 11,459 113,667 52,358 605,977 9,849 8,533 12,120 10,603 69,346 9,880 5,000 55,774 184 Organization expenses Jan. 1/1916 34,603 122,335 31,517 1 Richmond. 23,568 23,597 39,948 23,568 23,597 39,948 55,774 97,169 32,341 67,863 6,752 24,720 24,720 97,169 112,017 32,341 67,863 52,358 493,960 Cost of notes used from July 1 to Dec. 31, $63,800, charged to current expenses. Cost of Federal Reserve notes, November, 1914, to Dec. 31, 1915. New- Phila- CleveBoston. York. delphia. land. Richmond. Cost of Federal Reserve notesuptoDec.31,1915 $50,535 $345,887 $55,772 $51,772 Less cost of notes used up to Dec. 31,1915: Charged to current expenses 9,316 63,800 12,600 Charged organization 9,014 expense 2,586 50,000 Total Cost of unissued Federal Reserve notes Jan. 1, 1916 $31,766 14,398 Atlanta. Chicago. St. Minne- Kansas Louis. apolis. City. $34,058 $65,709 $34,483 $38,634 $25,057 24,556 5,329 8,098 FranDallas. San cisco. Total. $28,844 $804,705 $42,188 18,920 12,120 10,603 13,805 157,017 7,273 105,401 11,902 113,800 12,600 9,014 14,398 24,556 5,329 12,120 18,701 13,805 18,920 7,273 262,418 38,633 232,087 43,172 42,758 17,368 9,502 60,380 22,363 19,933 11,252 9,924 34,915 542,287 Cost offurniture and equipment (including vaults), November, 1914, to Dec. 31, 1915. New Phila- CleveBoston. York. delphia. land. Cost of equipment $11,347 $26,980 $18,491 Depreciation allowance... 1,752 Balance Jan. 1,1916. 9,595 26,980 18,491 $20,187 20,187 Richmond. . $11,849 2,349 9,500 Atlanta. Chicago. St. Minne- Kansas Louis. apolis. City. $8,545 $26,210 $20,346 $54,159 $46,829 3,210 2,317 5,000 6,228 23,000 20,346 54,159 41,829 FranDallas. San cisco. Total. $33,255 $6,422 $284,620 14,628 33,255 6,422 269,992 FEBRUARY 1. 59 FEDERAL RESERVE BULLETIN. 1916. Organization expenses, also cost of Federal Reserve notes and equipment for the period November, 1914, to Dec. SI, 1915. New Phila- CleveBoston. York. delphia. land. Expenses prior to Nov. 16 1914 $12,999 $30,967 $13,305 $15,866 Assessments, account expenses Federal Reserve Board, prior to July 1, 1915 17,266 41,368 18,396 21,511 Total organization expenses Cost of Federal Reserve notes Cost of furniture and equipment: Equipment Vaults Machines. Other Total cost of furniture and equipment 30,265 72,335 Richmond. $12,012 11,556 Atlanta. Chicago. St. Minne- Kansas Louis. apolis. Gity. FranDallas. San cisco. Total. $14,556 $19,809 $186,168 9,880 10,164 13,817 193,989 $15,255 $16,641 $5,854 $13,205 $15,699 8,342 23,307 9,849 8,533 31,701 37,377 23,568 23,597 39,948 15,703 21,738 25,579 24,720 33,626 380,157 50,535 345,887 55,772 51,772 31,768 34,058 65,709 34,483 38,634 25,057 28,844 42,188 804,705 9,543 8,941 4,538 8,145 9,894 9,291 4,662 4,940 9,540 4,372 1,335 3,899 1,804 9,351 9,960 6,077 5,374 6; 960 44,351 15,071 7,364 10,013 3,682 12,314 49 14,070 2,535 373 6,376 19,466 7,388 25 1,069 600 4,753 72,794 97,484 80,74§ 33,596 11,347 26,980 18,491 20,187 11,849 33,255 6,422 284,62© 7,297 653 2,726 1,496 4,323 8,545 26,210 20,346 54,159 46,829 Recapitulation of earnings and expenses of the Federal Reserve Banks and the system as a whole from organization to Dec. SI, 1915. New Phila- CleveBoston. York. delphia. land. Richmond* Atlanta. Chicago. St. Minne- Kansas Louis. apolis. City. FranDallas. Sancisco. Total. Earnings: Nov. 16 to Dec. 31, $891 $13,927 $2,739 $2,077 1914 Jan. 1 to Dec. 31,1915. 124,568 331,108 111,233 111,738 A p p r e c i a t i o n on United States bonds 20,503 $4,730 314,850 $2,808 $17,814 233,652 251,071 $9,463 77,370 $1,322 $1,934 98,790 100,540 $2,679 241,987 $2,761 113,200 $63,145 2,110,107 125,459 345,035 134,475 113,815 319,580 236,460 268,885 86,833 100,112 102,474 244,666 115,961 2,193,755 Current expenses: Nov. 16 to Dec. 31, 1914 13,710 25,004 10,756 15,148 Jan. 1 to Dec. 31,1915. 102,433 256,342 110,935 108,050 12,791 91,519 7,124 23,342 19,866 11,647 13,552 96,316 176,965 136,313 80,367 112,401 15,763 109,875 18,207 109,213 186,91© 1,490,729 116,143 281,346 121,691 123,198 104,310 103,440 200,307 156,179 125,638 127,420 1,677,639 215,270 133,020 Total Total Excess of current earnings Excess of current expenses - . Amortization: Cost of Federal Reserve notes used Furniture and equip- 9,316 63,689 Dividends declared 68,578 9,383 11,902 113,800 12,600 9,014 1,752 13,654 113,800 Total 12,784 20,501 12,600 9,014 14,398 24,556 5,329 2,349 2,317 3,210 16,747 26,873 8,539 92,014 125,953 119,028 8,098 69,346 23,479 12,120 18,701 13,805 12,120 18,701 18,805 72,335 31,701 37,377 23,568 23,597 39,948 15,703 21,738 44,301 12,784 46,391 192,255 215,270 50,470 133,020 48,487 68,578 27.823 69,346 40,439 44,384 8,098 23," 479* 97,169 32,341 23,015 82,550 20,091 Organization expenses, Jan. 1, 1916 Profit and loss account credit 34,603 n 22,335 31,517 Profit and loss account debit illl 1 7,273 262,418 18,920 7,273 277,046 14,628 217,463 65,523 Total. 43,919 186,135 Deduct excess earnings... 9,316 63,689 Add deficit in eaminss *"9," 383* 55,774 25,579 I 516, H i 18,920 5,000 151,940 . <.. Organization expenses to 30,265 Dec. 31,1915 €... 11,459 24,720 33,626 109,163 119,028 40,899 874,66@ "~ii,*459 j- 516,116 52,358 67,863 380,157 9,865 Cost of Federal reserve notes used from July 1 to Dec. 31,1915, and not offset by earnings—$111—carried to profit and loss. 493,961 135,521 111 60 FEDEKAL BESEBVE BULLETIN. GOLD SETTLEMENT FUND. Payments and transfers through the gold settlement fund have been numerous during the month of January and Indicate its continued development. Federal Reserve Banks and Federal Reserve Agents are using the fund freely, FEBRUARY 1, 1916. The amounts held to the credit of the Federal Reserve Banks on January 20, 1916, were $84,230,000, while the amounts standing to the credit of the Federal Reserve Agents in the Federal Reserve Agents' fund on that date were $58,030,000. A condensed summary of transactions in the gold settlement fund from May 20 to December 31, 1915, is given below: Condensed summary of transactions, May 20 to Dec, SI, 1915, both inclusive. Federal Reserve Bank of— BostonNew York Philadelphia... Cleveland Richmond Atlanta Chicago St. Louis... Minneapolis Kansas City Dallas San Francisco Total Gold deposited. Withdrawn. Withdrawn by transfer to Federal Reserve Agent. Payments to and from other Federal Reserve Banks. Excess of— Total withdrawn. $3,230, 000 $3,230,000 87,000, 000 87,000,000 12,450, 000$7, 000,000 $5,000,000 $12,1,000,000 450,000 3,200, 000 270,000 270,000 2,930,000 9,770, 000 110,000 9,550,000 10,660,000 6,380, 13,700,000 13,700,000 12,030, 000,000 4,260,000 6,260,000 5,770,000 3,220, 000 000,000 5,000,000 7,000,000 1,400, 4,000,000 4,000,000 3,480, o o o . : 276,666 7,000,000 7,270,000 7,680, 000 930,000 1,900,000 9,830,000 5— 000 7, 000,000 2,050,000 7,050,000 000 5, 155,800,000 25,580,000 52,460,000 78,040,000 77,760,000 Amount of clearings to Dec. 31, 1915. Withdrawals. Total debits. 7,320,000! 3,780,000 2,600,000 3,790,000 2,170,000 1,070,000 Total credits. Net debit. Net credit. Balance to credit in fund Dec. 31, 1915. $134,160,000 $135,209,000 $1,049,00014,279,000 334,583,000 253,300,000 $81,283,000 5,717,000 129,399,000 138,644,000 9,245,000 9,695,000 17,194,000 25,306,000 00011,042,000 8,112,000 67,879;, 000 78, 644,000 10,765,000 9,875,000 11,037,000 3,717,000 32,107,000 43, 144,000 1,356,000 156,084,000 151,670,000 4,414,000 101,517,000 111,369,000 9,852,000 6,072,000 6,141,000 13,096,000 6,955,000 4,355,000 37,305,000 43,559,000 6,254,000 2,464,000 20,398,000 31,876,000 11,478,000 9,308,000 15,882,000 26, 832,000 10,950,000 9,880,000 !l, 052,649,0001,052,649,000 85,697,000 85,697,000 77,760,000 the Federal Reserve Bank of Chicago were $4,414,000, an amount relatively small in proTotal clearings. Balances. portion to its total payments of $156,084,000. Previously reported $964,300,000 $175,381,000 The net payments made by the Federal Reserve 9,818,000 52,873,000 Settlement of Dec. 30,1915 Bank of New York were much heavier, both in 1,017,173,000 185,199,000 Total amount and relatively, being $81,283,000. 35,476,000 Other transfers between banks Among the causes which may be cited to Total payments between F ederal Reserve Banks effected through gold explain this shifting in the ownership of the settlement fund, to Dec. 31,1915... 1,052,649,000 gold held in the gold settlement fund are the Amount of clearings and transfers between Federal Reserve usual late summer and fall movement of funds Banks, from Jan. 1, 1916. from New York to the interior for crop-moving purposes and the movement of a part of the Total Balances. Transfers. clearings. gold received from Europe in payment for exports in the course of its distribution among Week e n d i n g $5,900,000 the interior points at which much of the export Jan 6 1916 . . . . $46,957,000 $5,297,000 582,000 3,421,000 43,307,000 ' Jan. 13,1916 519,000 business originated. The movement of gold 5,500,000 42,904,000 Jan 20 1916 7,001,000 for crop-moving purposes is balanced in normal 133,168,000 14,218,000 Total years by return shipments beginning in NoPayments for the Federal Reserve Bank of vember and reaching their maximum about New York and the Federal Keserve Bank of the first of the year. In the present situaChicago to other Federal Reserve Banks were tion it appears probable that the other factor greater than their receipts, while each of the mentioned has been sufficiently important to other 10 banks received payments in excess overbalance this normal return flow and that of those made. The net payments made by it may be considered as accounting for the FEBRUARY 1, 1916. 61 FEDERAL RESERVE BULLETIN. transfer of ownership of gold held in the gold settlement fund from the Federal Reserve Bank of New York to other Federal Reserve Banks. This movement did not terminate with the close of the year 1915, but continued through the first week in January, so that the highest point was reached on January 6, when the net amount thus transferred stood at $86,293,000. The settlements of January 13 and 20 have, however, both been favorable to the Federal Reserve Bank of New York, so that the net amount of the movement at the latter date was only $82,674,000. It is interesting to note that, with the exception of New York, the banks which have handled the largest transactions through the gold settlement fund show net payments or receipts much smaller with relation to total payments made and received than do those banks which have handled the smaller aggregate sums. For example, the Federal Reserve Bank of Chicago, which ranks second in amount of total payments, had total debit items of $156,084,000, while its credits were only $4,114,000 less;, Boston, next in order, received payments aggregating $135,209,000 and made payments only $1,049,000 less; Philadelphia and St. Louis, which ranked next in volume of transactions, had balances also relatively small; while Minneapolis, San Francisco, and Cleveland, which handled the smallest volume of transactions, were all creditors by amounts large in proportion to the total amount of transactions handled by them. The table following shows the amounts of the deposits and withdrawals made by each Federal Reserve Bank through the United States Treasury, subtreasuries, or mints. No shipments of gold between the various offices of the Treasury have been necessary in connection with the operations of the fund, as with the exception of the New Orleans Subtreasury and the Denver Mint the deposits at each point have exceeded the withdrawals, and in these cases the Treasury Department had ample funds on hand to make the payments desired. Deposits and withdrawals by Federal Reserve Banks, and where made, May to to Dec. 81 , 1915. [000's omitted.] Federal Reserve Bank of— Subtreasury or mint at— Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. Chicago. Depos- With- Depos- With- Depos- With- Depos- With- Depos- With- Depos- With- Depos- Withited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. drawn. New York .• Philadelphia Cincinnati . . Washington Chicago . . . ... $3,230 . . . . . . . ......... 3,230 Total $87,000 $12,450 $7,000 12,450 87,000 7,000 $110 "ii*5o6" 1,700 1270 3,200 270 i $9,770 11,110 16,270 9,770 1,110 6,380 $12,030 $2,000 12,030 2,000 Federal Reserve Bank of— Subtreasury or mint at— St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. By all banks. Depos- With- Depos- With- Depos- With- Depos- With- Depos- With- Depos- Withited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. drawn. New York PhiladelDhia Wash inszt on Chicago St. Louis NPW Orleans San Francisco Total 1 . $3,230 87,000 12,560 $7,000.5 1,500 2$4,150 21,890 $270 1,650 13,430 2,000 25 6,700 2,025 3,510 7,810 3,510 7,810 3 $5,980 $5,000 5,980 5,000 94.5 94.5 $0.5 $3,220 12,000 3,220 2,000 $i, 400 1,400 $3,480 3,480 270 7,660 7,930 5,980 5,000 155,800 25,580 Includes a deposit of $5,000,000 made by the Treasury Department. 2 Includes a deposit of $4,000,000 made by the Treasury Department. s In addition to the amount shown, $4,400,000 has been deposited with the assistant treasurer of the United States at San Francisco, to the credit, however, of the Federal Reserve Agent at San Francisco. 62 FEDERAL RESERVE BULLETIN. FEBRUARY 1, 1916. Gold settlement fund—Summary of transactions Dec. %4, 1915, to Jan, 20, 1916. Federal Reserve Bank of— Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Balance last statement, Dec. 23,1915. Gold. Withdrawn. Kansas'City Dallas San Francisco... $3,331,000 6,613,000 5,169,000 10,410,000 9,205,000 2,720,000 1,698,000 6,243,000 3 988 000 1,722,000 9,319,000 9,942,000 50,000 150,000 2,000,000 Total 70,360,000 2,600,000 Federal Reserve Bank of— Balance last statement, Dec. 30,1915. Boston $4,279,000 6,717,000 New York 8,695,000 Philadelphia 11,042,000 Cleveland 9,875,000 Richmond 3,717,000 Atlanta Chicago 1,256,000 6,072,000 St. Louis . . . 4,355,000 Minneapolis Kansas City 2,464,000 Dallas 9,408,000 San Francisco . . . 9,880,000 Total.... 77,760,000 Federal Reserve Bank of— Balance last statement, Jan. 6,1916. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis. Minneapolis Kansas City Dallas San Francisco Total Federal Reserve Bank of— Boston New York Philadelphia........ Cleveland Richmond.. Atlanta Chicago St. Louis Minneapolis Kansas City.' .... Dallas San Francisco Debit. $10,000,000 $845,000 Credit. 154 000 10,000,000 Gold. Withdrawn. *$5*666,"666* 999,000 Credit. *$8,*666,'666" $1,500,000 4,000,000 *$i*666,"666" 1,100,000 8,000,000 7,000,000 7,000,000 Debit. 9,000,000 Gold. 4,860,000 50,000 $50,000 32,000 32 000 500,000 9,600,000 582,000 Total debits. 5,297,000 46,957,000 582,000 Debit. 77,760,000 Total credits. Jan. 6,1916,, balance in fund after Net credits. clearing. 504,000 2,000,000 $1,603,000 8,707,000 8,897,000 11,661,000 9,822,000 3,321,000 2,372,000' 7,580,000 3,944,000 2,151,000 8,812,000 11,880,000 5,297,000 80,750,000 569,000 716,000 1,508,000 46,957,000 Total credits. Jan.13,1916, balance in fund after Net credits. clearing. $3,973,000 $4,457,000 10,612,000 10,658,000 5,512,000 4,707,000 1,254,000 1,556,000 6,332,000 6,844,000 2,174,000 2,379,000 1,190,000 7,171,000 5,981,000 1,383,000 4,257,000 2,874,000 43,000 77,000 34,000 1,569,000 2,262,000 332,000 1,498,000 44,000 57,000 693,000 1,166,000 13,000 $2,087,000 9,253,000 8,092,000 12,013,000 10,574,000 3,526,000 10,164,000 6,197,000 3,901,000 2,784,000 9,506,000 10,333,000 3,421,000 3,421,000 88,430,000 $484,000 46,000 $805,000 43,307,000 302,000 512,000 205,000 43,307,000 Settlement of Jan. 20,1916. Net debits. Total debits. Total credits. Jan .20,1916,. balance in fund after Net credits. clearing. $817,000 $5,063,000 $4,246,000 9,314,000 12,387,000 $3,073,000 7,192,000 4,613,000 1,337,000 1,216,000 5,783,000 6,533,000 750,000 166,000 1,486,000 1,320,000 5,785,000 7,067,000 1,282,000 $413,000 106,000 ""1*537,"666* 5,387,000 3,850,000 325,000 65,000 260,000 850,000 1,190,000 340,000 285,000 265,000 20,000 97,000 152,000 55,000 2,579,000 121,000 $660,000 --------$519,000 660,000 Credit. Total debit. Net debit. Transfers. Deposited. 9,818,000 Settlement of Jan. 13,1916. Credit. $600,000 $360,000 $2,087,000 9,253,000 $2,000,000 8,092,000 12,013,000 10,574,000 50,000 3,526,000 10,164,000 6,197,000 3,901,000 2,784,000 io," 666" 9,506,000 10,333,000 "2,*8o6,"666* 52,873,000 $1,176,000 $4,941,000 $3,765,000 3,010,000 11,726,000 8,716,000 298,000 6,037,000 5,739,000 1,168,000 1,737,000 4,583,000 53,000 4,636,000 396,000 1,876,000 1,480,000 9,782,000 10,498,000 450,000 4,588,000 6,096,000 125,000 64,000 61,000 1,662,000 1,359,000 303,000 323,000 827,000 93,000 2,093,000 $500,000 Withdrawn. Net debits. Transfers. Deposited. 1,920,000 9,818,000 52,873,000 5,500,000 50,000 350,000 367,000 792,000 393,000 1,938,000 $4,279,000 6,717,000 8,695,000 11,042,000 9,875,000 3,717,000 1,256,000 6,072,000 4,355,000 2,464,000 9,408,000 9,880,000 $948,000 2,681,000 632,000 1,070,000 997,000 Settlement of Jan. 6,1916. Debit. Gold. 80,750,000 999,000 Deposited. 16*666" Withdrawn. Total credits. $5,637,000 $6,585,000 18,268,000 9,217,000 5,602,000 8,283,000 854,000^ 1,486,000 4,433,000 5,503,000 1,640,000 2,637,000 596,000 9,557,000 8,961,000 171,000 5,205,000 5,034,000 95,000 462,000 1,229,000 2,021,000 210,000 603,000 143,000 2,081,000 Transfers. 50,000 5,010,000 Total debits. Net debits. Dec. 30, 1915, balance in after Net credits. fund clearing. $9,051,000 $845,000 154,000 60,000 440,000 1,060,000 T o t a l . . . . . . . . . . 88,430,000 Deposited. $400,000 $1,603,000 8,707,000 8,897,000 11,661,000 9,822,000 3,321,000 2,372,000 7,580,000 3,944,000 2,151,000 8,812,000 11,880,000 Balance last statement, Jan. 13,1916. Settlement of Dec. 30,1915. Transfers. 519,000 519,000 5,500,000 42,904,000 42,904,000 5,500,000 $1,270,000 10,326,000 5,513,000 11,892,000 ll,934-,00O 3,360,000 11,859,000 4,766,000 3,641,000 3,114,000 8,967,000 7,588,000 84,230,000 Federal Reserve agents9 fund—Summary Dec. 23, 1915. Week ending Dec. 30, 1915. Federal Reserve Agent at— Balance. Philadelphia Richmond . Atlanta Chicago . . . . St. Louis Minneapolis Kansas Gity Dallas . San Francisco Total. 63 FEDERAL RESERVE BULLETIN. FEBRUARY 1, 1916. Deposited. Week ending Jan. 6, 1916.1 Week ending Jan. 13,1916. Withdrawn. Balance. $5,000,000 15,000,000 9,150,000 ""$400,'666' 9,550,000 13,700,000 13,700,000 4,260,000 4,260,000 5,000,000 5,000,000 4,000,000 4,000,000 7,000,000 7,000,000 150,000 1,900,000 1,750,000 6,450,000 6,450,000 56,310,000 of transactions, Dec. 24, 1915, to Jan. 20f 1916, Deposited. Balance. $5,000,000 9,310,000 13,700,000 4,260,000 '5,000,000 4,000,000 7,000,000 1,900,000 1,060,000 7,510,000 "$666," 666" "'"$366,'666* - - - - - • 550,000 56,860,000 600,000 Week ending Jan*. 20,1916. Withdrawn. $500,000 1,420,000 57,680,000 500,000 Deposited. Balance. 800,666 $5,000,000 8,860,000 13,700,000 4,260,000 5,000,000 4,000,000 7,000,000 1,900,000 8,310,000 850,000 58,030,000 $50,000 i No change. DISCOUNT RATES. Discount rates of each Federal Reserve Bank in effect Jan. 27y 1916. Maturities of 10 days and less. Boston, .... New York Philadelphia Cleveland Richmond Atlanta... Atlanta (New Orleans branch). Chicago St. Louis Minneapolis Kansas City Dallas San Francisco .'.... Maturities of over 10 to 30 days, inclusive. Maturities of over 30 to 60 days, inclusive. Maturities of over 60 to 90 days> inclusive. Trade acceptances. Agricultural and live-stock 60 to paper over To 60 days, Over 90 days, 90 days. inclusive. inclusive. Commodity paper. 13* 3. 4 4 3J 4 13 3 1 Rate for commodity paper maturing within 90 days. 2 Rate for trade acceptances bought in open market without member bank indorsement. * A rate of 2 to 4 per cent for bills with or without member bank indorsement has been authorized. fRate for commodity paper maturing withm 30 days, 3£ per cent; over 30 to 60 days, 4 per cent; over 60 to 90 days,4| per cent; over 90 days 5 per cent. 23914—16 8 64 FEDEBAL BESERVE BULLETIN. FEBRUARY 1, 1916. INFORMAL RULINGS OF THE BOARD. Below are reproduced letters sent out from time to time over tlie signatures of the officers of the Federal Reserve Board, which contain information believed to be of general interest to Federal Reserve Banks and member banks of the system: Purchase of United States Bonds. In answer to your letter dated December 23, asking whether Government bonds bought by the Federal Reserve Bank of St. Louis prior to January 1, 1916, may be deducted from its proportionate share of the bonds allotted under the provisions of section 18 at the end of the first quarter of 1916, I have to advise you that the Federal Reserve Board, in a ruling printed on page 217 of the August Bulletin, ruled that bonds bought by Federal Reserve Banks prior to December 31, 1915, shall not be considered eligible for deduction in this manner. The only question to be considered in this connection is whether the bonds bought in the open market bear the circulation privilege; if they do, .they are eligible as a deduction from the amount of bonds allotted under the provisions of section 18 whether or not they are actually securing circulation at the time of purchase; if they do not bear that privilege, thay have no relation to the provisions of section 18 and can not be considered in making the deduction from the amount of bonds allotted under that section. DECEMBER 31, 1915. Acceptance Securities. Your letter addressed to Hon. 0. S. Hamlin, Governor of the Federal Reserve Board, under date of December 16, has been duly considered by the Board, and I am instructed to advise you that the Attorney General, in an opinion some time ago (17 Op. A. G., 471), reached the conclusion that while national banks did not have the power to accept drafts and bills of exchange at that time, if there were no other legal objections to such acceptance, it would not come within the restriction contained in section 5200. The Federal Reserve Board in its letter to the Governor of the Federal Reserve Bank of New York relating to agreements for acceptance securities, printed on page 269 in the September Federal Reserve Bulletin, stated that— " I t should be understood, of coifrse, that the 10 per cent limitation imposed by section 5200 of the United States Revised Statutes is not intended to apply to the mere acceptance of a bill of exchange, but that the provisions of section 5200 of the United States Revised Statutes would apply to the indebtedness arising between the drawer of the bill and the accepting bank in case the drawer fails to furnish funds with which to meet the acceptance a/t maturity.7' It is, therefore, the opinion of this office that the objections incurred by the mere acceptance of a draft do not come within the provisions of section 5200. JANUARY 3, 1916. Status of Employees of Reserve Banks. Your letter of January 3 was submitted to the Board, and I am directed to say to you that the Board is in accord with the views expressed therein. As you stated, the real point is that the list of all salaries should be submitted to the Board once a year for its approval, and the month of January would seem to be the natural time for such approval, as that is the usual month when changes in salaries are made. The Board does not wish to convey the idea that it desires that all clerks should have definite terms of office. These appointments may be for an indefinite term provided they are terminable at the pleasure of the board of directors of the bank. While the general custom is that clerks are appointed by the officers of the bank, the officers, Senior and junior, as a rule, are appointed or elected by the board of directors of the bank, generally to serve for the ensuing year. It would appear, therefore, that this general practice ought to be observed also by the Federal Reserve Banks and senior and junior officers ought to be appointed from year to year and their salaries, as all others, should be subject to annual approval by the Federal Reserve Board. JANUARY 6, 1916. Eligibility of State Banks. In reply to your letter of December 29,1915, requesting an opinion as to whether a Michigan State bank in a city of approximately 5,000 inhabitants, could become a member of the Federal Reserve System, with a capital of less FEBRUARY 1, than $50,000, you are advised that section 5138, United States Revised Statutes, as amended in 1900, provides, in substance, that no association shall be organized with a capital of less than $100,000 except in cities (1) where the population does not exceed 6,000, banks with a capital of not less than $50,000 may be organized with the approval of the Secretary; (2) where the population does not exceed 3,000, banks with a capital of not less than $25,000 may be organized with the sanction of the Secretary of the Treasury. If the population exceeds 50,000 the capital must be not less than $200,000. As the population of Bessemer, Mich., is more than 3,000, but less than 6,000, it would come under exception (1). While the statute vests in the Secretary of the Treasury a discretion as to whether national banks in cities of from 3,000 to 6,000 may organize with capital of less than $100,000, but more than $50,000, the minimum is conclusively fixed by law at $50,000, and State banks located in a city of approximately 5,000 population can not become member banks with a capital stock of less than that minimum. No power is vested in the Secretary of the Treasury or any other executive officer to reduce this minimum. JANUARY 6, 1916. Circulating Notes. In further reply to your letter of November 9, 1915, you are advised that counsel for the Federal Reserve Board has ruled that there is nothing in the provisions of the Federal Reserve Act or of the National Bank Act which prevents a national bank which has reduced the amount of its circulating notes by the sale of bonds in the manner provided in section 18 of the Federal Reserve Act, from taking out additional circulation on the security of other bonds bought in the open market. JANUARY 6, 1916. Cattle Paper. Your letter of January 4, stating that a large cattle loan company has taken up with a New York banking institution an arrangement under which it may draw drafts with maturities to 90 days, attaching to the draft a chattel mortgage on cattle securing the amount, has had the consideration of the Federal Reserve Board. 65 FEDERAL RESERVE BULLETIN. 1916. It is the view of the Board that cattle should be considered as a readily marketable commodity and that the Federal Reserve Bank of St. Louis may consider as eligible a bankers' acceptance secured by a chattel mortgage on cattle. JANUARY 6, 1916. Eligible Acceptances. The Federal Reserve Board recently received a telegram from a Federal Reserve Bank stating that the bank was offered acceptances drawn by a manufacturer on and accepted by a trust company in the city in which the bank is located. The trust company is not a member of the Federal Reserve System. It was stated that the proceeds were to be used for the purchase of raw material and the payment of labor used in manufacturing. The goods had not been sold, and the drawer could not, therefore, comply with sub-section d, section 3, regulation S, and furnish to the Federal Reserve Bank warehouse receipts or other instruments desired. While these acceptances were stated by the bank to be a safe investment it was held by the Federal Reserve Board, after careful consideration, that they were not of a kind eligible to be taken by a Federal Reserve Bank. JANUARY 8, 1916.. Status of Class C Directors. In reply to a letter sent out from this office under date of January 5, the Federal Reserve Board has been informed that, in several of the Federal Reserve Banks, class C directors are placed in a position with reference to the administration of the bank's affairs, through the provisions of the by-laws, which is different from that of directors of classes A and B. The matter has been carefully investigated and legal advice obtained in respect to it, with the result that the Board has directed me to express to you the opinion that the Federal Reserve Act does not warrant any discrimination by by-laws against class C directors, but that they are regarded as being eligible to the same appointments and subject to the same duties as other directors. Will you kindly bring this letter to the attention of your board of directors and advise me of the result of its action ? JANUARY 14, 1916. 66 EEDEBAL BESEEVE BULLETIN. Paper of Suspended Banks. Your correspondence with the receiver of a national bank has been brought to the attention of the Board. It appears that the receiver, in considering his plans for the reorganization of the bank, desires assurances from you that the Federal Reserve Bank will, upon the reopening of the national bank, rediscount eligible paper for it freely, without requiring the indorsement of the directors or other additional security. He further intimates that upon such assurances will depend the success of the plans for the reorganization of the bank. In the opinion of the Board you have very properly declined to give such assurances. The fact that the bank has suspended and that it is necessary to reorganize it is evidence that its affairs have not hitherto been prudently conducted. In many cases it is customary for small banks, in securing accommodations from their reserve agents, to offer the note of the bank secured by bills receivable aggregating considerably more than the face of the note offered for discount, thus giving the rediscounting bank a good margin of security. The Federal Reserve Banks are not permitted under the Act to discount notes for their member banks secured in this way, but in granting accommodation must discount each note or bill separately. Discount operations, however, are not mandatory upon the Federal Reserve Banks. Section 13 of the Act provides that "upon the indorsement of any of its member banks, with the waiver of demand notice and protest bj such bank, any Federal Reserve Bank may discount notes, drafts, and bills of exchange arising put of actual commercial .transactions." There is nothing in the Act that prohibits guaranties or the deposit of additional security under a collateral agreement. Nearly all of the Federal Reserve Banks in their transactions with over-extended member banks, have required additional security or guaranties, although they have complied with the letter of the Act by discounting notes separately with the indorsement of the member bank. It is difficult in many cases for directors of Federal Reserve Banks to form definite conclusions as to the strength of paper offered and many accommodations that have been granted FEBRUARY 1, 1916. would doubtless have been refused but for the additional security offered. There are many banks where the management is concentrated in one officer and where the directors do not actually direct. In such cases there is an obvious advantage in securing the indorsement or guaranty of the directors, for besides the added strength that is given by the names of well-to-do directors, the liability incurred by them in indorsing, brings about a closer supervision on their part of the bank's affairs. The Board feels, however, that Federal Reserve Banks in dealing with member banks will, as far as possible, comply with the terms of the Act and where the bank making offerings for discount is in good standing and well managed, and where the paper conforms to the regulations of the Board and appears to be unquestionably good, a guaranty of directors should not be required, but it is clear, none the less, that your position in declining to give .the assurances asked for by the receiver, is well taken. It is assumed, of course, that should the national bank resume business ypur board of directors will consider its offerings upon their merits, and will discount, without the personal indorsement of its directors, such paper as may be entirely satisfactory. JANUARY 18, 1916. Farm Land Loans* Replying to your letter of January 20, relating to the limit imposed by law on farm-land loans, you are advised that the provisions of section 5200 of the Revised Statutes are applicable to money borrowed on the security of farm land under the provisions of section 24 of the Federal Reserve Act, and that, in consequence, no real estate loan should be made to any one individual in excess of 10 per cent of the capital and surplus of the lending bank. You are also advised that the provisions of section 5200 refer to the total liabilities of any one association, person, company, or corporation, and that, therefore, any other liability of a borrower on his personal note should be included in estimating the maximum amount which can be loaned on the security of real estate. JANUARY 24, 1916. FEBRUARY 1, 1916. FEDERAL RESERVE BULLETIN. Agricultural Implement Paper. Upon the question, whether notes given by farmers in payment of agricultural implements may be rediscounted at Federal Reserve Banks, the Federal Reserve Board on December 30, 1915, made answer as follows: The question put is a very close one. The law permits the rediscount of six months' paper that has been "drawn or issued for agricultural purposes, or the proceeds of which have been used or are to be used for agricultural purposes." There can not be any doubt that a bill drawn by a dealer on a farmer in payment for agricultural implements purchased by the farmer is a bill that has been "drawn or issued for agricultural purposes and the proceeds of which have been used or are to be used for agricultural purposes." The question then arises—does such paper comply in addition to this requirement, with those prescribed by the FederalReserve Board by Regulation lB, of which II (a) prescribes that "no bill is eligible/ the proceeds of which have been used or are to be used for permanent or fixed investments of any kind, such as land, buildings, machinery (including therein additions, alterations, or other permanent improvements, except such as are77properly to be regarded as costs of operation). I t is a very close question whether agricultural implements are to be considered as permanent improvements or as part of the cost of operation. However, it must be considered that machinery of this kind is not of a permanent character. It wears out rapidly and in most cases has to be replaced within a comparatively short time, so that it may be assumed that a certain amount of money would be spent annually and regularly for the purchase and replacement of machinery of this kind. As the Board by its regulations does not desire unnecessarily to restrict, but rather to encourage, the facilities to be given, as far as that maybe done consistently with prudence, it would appear that the wider interpretation in this case should be given, and a ruling by the Board would appear entirely appropriate which would permit notes and bills of exchange drawn by implement dealers on a farmer against a sale to him of agricultural implements, to be considered as drawn or issued for agricultural purposes. 67 This would answer, in the affirmative, question 1: "Are the notes of farmers or consumers given for the purchase price of farm tools, agricultural machinery, or other farm-operating equipment discountable under the section 13 of the Federal Reserve Act providing for notes, bills, or drafts,7 drawn or issued for 'agricul-. tural purposes ?" Question 2 reads as follows: "Will the fact that such notes, drafts, or bills are presented by the dealer with his indorsement for rediscount, change their classification from the rating given them if presented by the maker (the farmer); if so, why?" It is to be assumed that the clause permitting the rediscount of agricultural six months7 paper was enacted by Congress for the purpose of giving special facilities to farmers. If the note were purchased from a dealer, it would appear that the facility is not given to the farmer but to the dealer. However, there is no doubt that the language of the law plainly would permit the rediscount of such paper ana, inasmuch as, indirectly, the farmer would profit by the rediscount to the dealer—inasmuch as otherwise the farmer would have to borrow, and probably borrow at a higher rate for a single-name note than the money could be secured upon the double-name bill of exchange drawn by the dealer—it is to be expected that the advantage of the lower discount rate and of the cheaper credit will indirectly result to the benefit of the farmers. It would appear, therefore, that from every point of view, question 2 should be answered in the negative. Question 3 reads: "What provisions or marks of identification, if any, must be placed upon notes, drafts, or bills to have them properly classified as 'issued for agricultural purposes7 and render them discountable if their maturity does not exceed six months?77 The nature of the bill, the name of the acceptor, and the name of the drawer would probably indicate that a farmer was the purchaser and an implement dealer the seller of the goods. However, the purchasing member bank will have to satisfy itself in some satis^ factory way that the bill is substantially of an agricultural character. A simple memorandum attached to the bill, stating that the bill 68 FEDERAL RESERVE BULLETIN. was drawn in payment of agricultural implements, signed either by the acceptor or the drawer, would probably be considered sufficient evidence by the member bank and the Federal Reserve Bank. Question (4) reads: "What is the limit, in amount, that a Federal Reserve Bank may rediscount of notes, drafts, or bills where taken for ' agricultural purposes' as provided in section 13?" The law prescribes that in the aggregate the total amount of agricultural paper purchased by a Federal Reserve Bank should not exceed a percentage of its capital stock, the percentage to be fixed from time to time for each Federal Reserve Bank by the Federal Reserve Board. The percentage fixed by the Board differs in the various districts. Whenever a district has p plied, , the maximum limit has been granted, g , h h been b i d d to t be b 99 99 per centt off which has considered the capital stock. FEBRUARY 1, 1916. Treatment of Earnings and Expenses* On January 22 the Federal Eeserve Board sent out the following letter and attached form which will in the future be used by Federal Reserve Banks in reporting their earnings and expenses. Inclosed * please find 50 copies of revised forms Nos. 286b and 287b for reporting the monthly earnings and expenses of your bank. No change has been made in the form of the report for the earnings except that the reading of the first two captions has been modified to agree with the reading of the corresponding items on Form 34. Under the second head should be included, therefore, the earnings from all open-market purchases of trade acceptances, bankers7 domestic acceptances, and bankers' foreign trade acceptances. No provision has been made for reporting separately "Commissions paid." Sucn commissions, in accordance with informal ruling of the Board under date of September 22, 1915 (see p. 309 Federal Reserve Bank Holidays. of the October Bulletin), should be treated as This table of holidays, which will be ob- part of the purchase price or cost of the investserved by the 12 Federal Reserve Banks, has ment. Been made up from advices received from Under the head of current expenses the following observations would se^m pertinent: them. 1. Assessments on account of expenses of Apr. May Bank. Feb. Jan. Mar. June Federal Reserve Board should be apportioned to each month (regardless of the dates when Boston 22 30 19 paid) and cumulative figures of amounts 1 12,22 New York charged since January 1, 1916, shown in the 1 12,22 30 Philadelphia..... 21 1 22 Cleveland 30 second column. 22 1,19 30 Richmond 22 1,19 26 3 Atlanta 2. The expenses of the several advisorv 22 18,23 3 New Orleans branch. 4,11 12,22,29 5 bodies, including the Federal Advisory Council, Chicago.. 30 22 St. Louis 30 the Governors', and the Federal Reserve 12,22 Minneapolis 21 30 14 Kansas City 22 30 Agents' conferences, should be segregated, 21 Dallas...... 22 30 3 these expenses to include fees, per diem 12,22 San Francisco 2,30 allowances, traveling and other incidental expenses. Oct. Bank. July. Sept. Aug. Nov. Dec. 3. Items to be apportioned over a period should on day of payment, be charged to acBoston 30 New York 7,30 count " Expenses paid in advance " on Form 34, Philadelphia........ 7,30 Cleveland 7,30 pro rata amounts to be transferred to current Richmond 7,30 expenses on the last day of each month and to Atlanta , 4 30 New Orleans branch, 7,30 be included, under proper headings, on monthly Chicago... 7,30 12 St.Louis 7,30 report of expenses (Form 287b). 7,30 4. Under the general head of organization Kansas City.. 7,30 4 Dallas 30 4 expenses please report, in accordance with San Francisco. 7,30 4,9 informal ruling of December 10, 1915 (p. 12 of the January Bulletin), in short column the i Usually a holiday. 4 1 FEBRUARY 1, 1916. FEDERAL RESERVE BULLETIN. 69 •for the month cost of Federal Reserve notes issued by the Earnings of the Federal Reserve Bank of ,? IStf 6—Continued. bank prior to January 1, 1916, not offset by of current earnings, and all other organization MEMORANDUM. expenses shown on Form 34 after closing of Total Cumulative books for calendar year 19.15. The total of for totals.* month. these two items should equal the amount shown at the beginning of the7 year against item of Federal Reserve notes unissued by "Expense;—Organization ' on Form 34. At- Cost bank (including expressage, insurance, etc.). tention is called to the provisions of the Board's of furniture and equipment: informal ruling of December 10, 1915, regard- CostFurniture and fixtures Vaults ing the methods of amortizing the cost of FedMachines eral Reserve notes and other organization exOther penses. Total cost of furniture and equipment... 5. A separate account is set up for depreciation of furniture and equipment. This account 1 Totals for items "Cost of Federal reserve notes unissued, etc./' and " Cost of furniture and equipment" should agree with totals for coris to stow amounts written off in accordance of responding items on Form 34, as at close of business on the last of the report month. with paragraph 5 of informal ruling of December 10,1915. Expenses of the Federal Reserve Bank of for the month of , 1916. 6. The amount of item "Total current ex7 penses ' shown at the foot of Form 287b should Total equal the amount shown against item "ExTotal since for month. Jan. 1,1916. pense—Current" on Form 34 as at close of business on the last day of each month. Items shown in memorandum on Form 286b I. Current expenses: represent amounts expended during the month serve Board (monthly proportion) Federal Advisory Council (fees and travelon account of Federal Reserve notes printed ing expenses) Governors' conferences (including traveland shipped, including expressage, insurance, ing expenses). etc.; also amounts paid during the month for Federal Reserve Agents' conferences (including traveling expenses) furniture and equipment. As indicated in the Salaries: B ank offi cers heading,the figures in the second column against Clerical staff.. items "Total cost of furniture and equipSpecial officers and watchmen All other ment" and "Cost of Federal Reserve notes unDirectors'fees: Per diem allowance issued by bank" in this memorandum should Traveling expenses.* equal amounts shown against items "FurOfficers' and clerks' traveling expenses (less amounts included in items Federal niture and equipment" and "Cost of unissued Reserve Agents' and Governors' conferFederal Reserve notes" on Form 34 as at close of business on the last day of the report Rent.. Telephone. month. Telegraph.. Copies of the monthly report of earnings and expenses should be sent to us on or before the Insurance and premiums onfidelitybonds, Light, heat, and power 7tn of each month. Prmting and stationery Earnings of the Federal Reserve Bank of— of , 1916. Total for month. Earnings from: Bills discounted and bought— Bills discounted for member banks.. Bills bought in open market InvestmentsUnited States bonds , Municipal warrants , Commissions received Sundry profits Total earnings. for the month Total since Jan. 1,1916. Repairs and alterations All other expenses, n. s Total expenses of operation II. Cost of Federal Reserve notes issued by bank during month (including expressage, insurance, etc.) III. Organization expenses: Organization expenses Jan. 1,1916— Cost of Federal Reserve notes used prior to Jan. 1, 1916, not offset by All other. Total Amortization of Federal Reserve notes, monthly proportion (not less than one-thirtieth cost of notes) All other organization expenses, monthly proportion (not less than one-twenty-fourth of" All other").. IV. Depreciation of furniture and equipment., Total current expenses. 70 FEDERAL RESERVE BULLETIN. Fiduciary Powers, The applications of the following banks for permission to act under section 11 (k) of the Federal Reserve Act have been approved since the issue of the January Bulletin, as follows: DISTRICT NO. 1, FEBRUARY 1, 1916. DISTRICT N O . 8. Trustee, executor, administrator, and registrar of stocks and bonds: Citizens National Bank, Lebanon, Ky. Exchange National Bank, Columbia, Mo. DISTRICT NO. 9. Trustee, executor, administrator, and registrar of stocks and bonds: Great Falls National Bank, Great Falls, Mont. First National Bank, Cli&tonville, Wis. Trustee, executor, administrator, and registrar of stocks and bonds: First National Bank, Springfield, Vt. DISTRICT NO. 10. Trustee, executor, and registrar of stocks and bonds: First National Bank, Bangor, Me. Trustee, executor, administrator, and registrar of stocks Bath National Bank, Bath, Me. and bonds: Manufacturers National Bank, Lewiston, Me. First National Bank, Anthony, Kans. Canal National Bank, Portland, Me. Burnes National Bank, St. Joseph, Mo. Trustee and registrar of stocks and bonds: Trustee, executor and administrator: Second National Bank, Nashua, N. H. First National Bank, Evanston, Wyo. DISTRICT NO. 2. DISTRICT N O . 11. Trustee, executor, administrator, and rgistrar of stocks and bonds: First National Bank, Morristown, N. J. Bloomfield National Bank, Bloomfield, N, J. Lambertville National Bank, Lambertville, N. J. North Ward National Bank, Newark, N. J. Second National Bank, Paterson, N. J. Trustee, executor, administrator, and registrar of stocks and bonds: State National Bank, Albuquerque, N. Mex. Intradistrict Clearing System. Additions to and withdrawals from the system since the publication of the lists in Trustee, executor, administrator, and rgistrar of stocks and previous issues of the Bulletin are as follows: DISTRICT No. 3. bonds: Atlantic City National Bank, Atlantic City, N. J. DISTRICT No. 4. Trustee, executor, administrator, and registrar of stocks and bonds: First National Bank, Brooksville, Ky. First National Bank, Williamsburg, Ky. Trustee and registrar of stocks and bonds: City National Bank, Columbus, Ohio. DISTRICT NO. 5. DISTRICT NO. 3. Withdrawals: First National Bank, Dunmore, Pa. Second National Bank, Altoona, Pa. DISTRICT N O . 4. Additions: Farmers National Bank, Arcanum, Ohio. Withdrawals: First National Bank, Munhall, Pa. DISTRICT No. 5. Withdrawals: Enterprise National Bank, Laurens, S. C. Trustee, executor, administrator, and registrar of stocks and bonds: DISTRICT NO. 6. Farmers & Merchants National Bank, Lake City, S. C. Additions: Edisto National Bank, Orangeburg, S. C. National Branch Bank of Kentucky, Frankfort, Ky. DISTRICT No. 7. Withdrawals: First National Bank, Brownsville, Tenn. Trustee, executor, administrator and registrar of stocks and bonds: DISTRICT NO. 11. Additions: First National Bank, Casey, 111. Farmers & Merchants National Bank, Achille, Qkla. Milliken National Bank, Decatur, 111. Withdrawals: State National Bank, Bloomington, 111. First National Bank, Aylesworth, Okla. Citizens National Bank, Kokomo, Ind. First National Bank, Bokchito, Okla. Mrst National Bank, Humboldt, Iowa. Durant National Bank, Durant, Okla. Trustee, executor, and administrator: First National Bank, Kenefick, Okla. -First National Bank, Moweaqua, 111. Hall County National Bank, Memphis, Tex. First National Bank, Indianola, Iowa. First National Bank, Sonora, Tex. Oskaloosa National Bank, Oskaloosa, Iowa. FEBRUARY 1, FEDERAL BESBRVE BULLETIN. 1916. 71 LAW DEPARTMENT. The following opinions of counsel have been Government to pay any notes issued to it authorized for publication by the Board since which are presented to the Treasurer for rethe last edition of the Bulletin: demption before the Government will issue such notes to the applying bank. In other Transportation Charges ©n Federal Reserve Notes. words, the Government merely undertakes to Each Federal Reserve Bank must pay all expenses incilend its credit to the Federal Reserve Bank dent to the issue and retirement of its own Federal Reserve notes, including transportation charges on notes returned upon the bank's furnishing the necessary seto the bank of issue from any other Federal Reserve Bank curity provided for in the Act. This security or from the Treasury of the United States where they have consists of commercial paper in an amount been redeemed. equal to the face or par value of the. notes issued JANUARY 18, 1916. to the bank, such commercial paper being SIR: I have carefully read your letter of the deposited with a duly authorized agent or cus11th, submitting for consideration by this office todian designated Federal Reserve Agent. the question of expense involved in returning Section 16 of the Federal Reserve Act pronotes redeemed either by the Treasurer or by vides in part that— one of the Federal Reserve Banks to the Notes presented for redemption at the Federal Reserve Bank of issue. In order to answer the specific questions sub- Treasury of the United States shall be paid out of the redemption fund and returned to the mitted, it is necessary to consider those pro- Federal Reserve Banks through which they visions of the Act which relate to both the issue were originally issued, and thereupon such and redemption of these notes. Some con- Federal Reserve Bank shall, upon demand of fusion of thought results from the fact that the the Secretary of the Treasury, reimburse such Act provides for two distinct stages of issue redemption fund in lawful money; or, if suchr Federal Reserve notes have been redeemed by and two, and possibly three, stages of redemp- the Treasurer in gold or gold certificates, then tion. such funds shall be reimbursed to the extent It must be remembered that under the terms deemed necessary by the Secretary of the of the statute a Federal Reserve note is an Treasury in gold or gold certificates, and such Federal Reserve Bank shall, so long as any of obligation of the United States; that is to say, its Federal Reserve notes remain outstanding, it is a promise by the United States to pay to maintain with the Treasurer in gold an amount the holder on demand a fixed amount in gold. sufficient in the judgment of the Secretary to This note may be said to be issued as soon as provide for all redemptions to be made by the this obligation is created, or, in other words, Treasurer. It thus appears that the Federal Reserve as soon as the liability of the Government to pay upon presentation the amount stipulated, Bank through which these notes are issued unhas become fixed. It is in determining this dertakes the redemption of such notes whether this redemption takes place at its own counter, stage of issue that confusion first results. These notes are prepared by the Bureau of at the counter of another Federal Reserve Engraving and Printing and stored in the Bank, or at the office of the Treasurer of the Treasury or subtreasuries or mints of the United States. When the Federal Reserve Bank places these United States. So long as they remain in storage no obligation has been created on the notes in circulation and they come into the part of the United States, and the notes can not hands of third parties, the holders or owners of be said to have been issued. When a Federal such notes may present them for redemption— Reserve Bank applies for an issue of such notes (a) To the Federal Reserve Bank of.issue; under the terms of the Act the applying bank (6) To any other Federal Reserve Bank; or, must undertake to furnish the gold to the (c) To the Treasurer of the United States. 23914—16 4 72 FEDERAL RESERVE BULLETIN". If they are presented to any Federal Reserve Bank other than the bank of issue and are either redeemed in gold or lawful money or credited to the account of the owner presenting them, such Federal Reserve Bank is required by law to return them to the Federal Reserve Bank of issue for redemption. In doing this the Federal Reserve Bank receiving such notes, either for credit or for redemption in lawful money, is performing a service for the Federal Reserve Bank of issue which has undertaken to furnish funds for the redemption of such notes and it is, in effect, acting as the agent for the Federal Reserve Bank of issue. For this service it not only does not receive any compensation but incurs some expense, since it loses the use of its funds during the period that such notes are being returned to the Federal Reserve Bank of issue. It seems clear, therefore, that the Federal Reserve Bank of issue, for which this service is performed, should defray all expenses of transportation. In like manner, where notes are redeemed by the Treasurer of the United States, the Treasurer is performing a service for the Federal Reserve Bank of issue and all expenses incident to such redemption should be borne by that bank. Answering specifically the questions submitted by you, this office is of the opinion— (1) That the Act clearly contemplates that each Federal Reserve Bank must redeem its own notes and the notes of any other Federal Reserve Bank. (2) That no distinction is made by the Act between the receipt of Federal Reserve notes in due course of business and the receipt of such notes for redemption. The duty performed for the Federal Reserve Bank of issue is the same in either case and the expenses incident to the return for redemption or credit should, in both cases, be borne by the Federal Reserve Bank of issue. (3) Where Federal Reserve notes unfit for circulation are returned to the Comptroller for cancellation and new notes issued, the expenses of this new issue are paid in the same manner as in the case of an original issue. FEBRUARY 1, 1916. Section 16 provides in part that— The expenses necessarily incurred in executing the laws relating to the procuring of such notes, and all other expenses incidental to their issue and retirement, shall be paid by the Federal Reserve Banks. This has been construed to mean that each bank pays the expenses incident to the issue and retirement of its own notes and so whether the transportation charges are included in the assessment levied by the Federal Reserve Board or not the Federal Reserve Bank of issue should be required to defray this expense. Respectfully, M. G. ELLIOTT, Counsel. To Hon. CHARLES S. HAMLIN, Governor Federal Reserve Board. Right of a National Bank to Increase the Amount of Its Circulating Notes. There are no provisions of law which prohibit a national bank from increasing the amount of its outstanding circulating notes merely because it has withdrawn circulation since the passage of the Federal Reserve Act under the provisions of section 18 of that Act. DECEMBER 4, 1915. SIR: I have your memorandum asking— (1) Is there anything in the Federal Reserve Act or in its construction by the Board or the Treasury that prohibits a national bank from increasing its circulation over the amount it has outstanding? (2) Is there anything that prohibits a national bank which has since the passage of the Act withdrawn circulation from again taking out circulation up to or beyond the amount it had outstanding when the act was passed ? In reply I beg to advise that the provision of the Federal Reserve Act which amends the the previous statutes relating to circulation reads as follows: SEC. 17. So much of the provisions of section fifty-one hundred and fifty-nine of the Revised Statutes of the United States, and section four of the Act of June twentieth, eighteen hundred and seventy-four, and section eight of the Act of July twelfth, eighteen hundred and eightytwo, and of any other provisions of existing statutes as require that before any national FEBRUARY 1, 1916. FEDERAL RESERVE BULLETIN. banking association shall be authorized to commence banking business it shall transfer and deliver to the Treasurer of the United States a stated amount of United States registered bonds is hereby repealed. It will be observed that this section repeals only those provisions of certain statutes which " require that before any national banking association shall be authorized to commence banking business it shall transfer and deliver to the Treasurer of the United States a stated amount of United States registered bonds.7? The effect of this amendment is that national banks are not required as a condition precedent to doing business to take out circulation, but it does not provide that banks which do take out circulation shall not be subject to those statutes which contain the conditions and limitations relating to the issue of national-bank notes. In answer to your inquiries, therefore, it is the opinion of this office that national banks may increase their circulation to an amount equal to the capital stock of such banks by deposit of the necessary bonds and that this may be done whether a national bank has reduced its circulation since the passage of the Federal Keserve Act or not. I understand that this practice is being approved by the office of the Comptroller of the Currency* Respectfully, M. C. ELLIOTT, Counsel. To Hon. CHARLES S. HAMLIN, Governor Federal Reserve Board. Eight of a National Bank to Write Insurance Through Its Officers. National banks have no express or implied power to write fire, cyclone, liability, or other kinds of insurance, or to receive the profits from insurance contracts entered into by its officers. JANUARY 13, 1915. SIR: The question has been raised whether, it is lawful for the officers of a national bank to write fire, cyclone, liability, and other kinds of insurance, all the profits derived from such business being turned into the bank. The powers of national banks are defined by section 5136, United States "Revised Statutes Article VII of which provides: 73 To exercise by its board of directors, or duly authorized officers or agents, subject to law, all such incidental powers as shall be necessary to carry on the business of banking; by discounting and negotiating promissory notes, drafts, bills of exchange, and other evidences of debt; by receiving deposits; by buying and selling exchange, coin, and bullion; by loaning money on personal security; and by obtaining issuing, and circulating notes according to the provisions of this title. The power to write insurance, act as insurance agent or broker, is not specifically enumerated in this section, and unless such business can be considered as incidental to some of the enumerated powers of national banks it is illegal and prohibited by implication as clearly as if by expression. (Logan County National Bank v. Townsend, 139 U. S., 67.) In Farmers & Merchants National Bank v. Smith (77 Fed., 129) it was held that it is not within the powers of a national bank to engage in the business of selling mortgage bonds on commission. Circuit Court Judge Thayer, on page 137, said: The brokerage business is entirely distinct from the business of banking which it was authorized to transact. If a national bank can lawfully act as a broker in selling farm mortgages for a commission, no reason is perceived why it may not act in the same capacity in selling any other species of property, real or personal. The national bank act does not, in terms, or by necessary implication, authorize national banks to act as brokers in negotiating the sale of securities, and it is generally agreed that they can not lawfully engage in such business. In Pepperday v. Citizens National Bank (183 Pa. St., 519, 524) the Supreme, Court of Pennsylvania said: It is no part of the business of a national bank to engage in the selling of stocks for anybody. It was a transaction outside of its regular banking business and not within its chartered powers. In Weckler v. First National Bank (42 Md., 581) the court said, on page 593: Nor can we perceive it is in anywise necessary to the purpose of their existence, or in any 74 FEDERAL RESERVE BULLETIN. sense incidental to the business they are empowered to conduct, that they should become bond brokers or be allowed to traffic in every species of obligations issued by the innumerable corporations, private and municipal, of the country. By analogy it would seem that writing insurance on commission is in no sense incidental to any.of the enumerated powers of a national bank. It is contended that the national bank, in the instance under consideration, is not acting as agent for the insurance company, but that its officers write the insurance in their Individual capacities and turn in all the profits to the bank. If the bank receives all the profits of writing the insurance, its officers are, in substance, acting as agents for the bank, and the bank is estopped to deny that it is engaging In the insurance business. In Schuyler National Bank v. Gadsden (191 U. S., 451) it was held that the taking of realestate security by the president of a national bank in his individual name for the benefit of the bank was in legal effect but the taking of security by the bank itself, and the president acted as its agent. Where a national bank retains and enjoys the proceeds of a transaction, it is estopped to deny that the act of the officer who enters into the transaction Is its own. (Peoples Bank v. National Bank, 101 U. 3., 181.) National banks, as such, must of necessity act through their officers or other agents. Inasmuch, therefore, as this class of business does not come within either the expressed or implied powers of national banks, an administrative board or officer can not authorize it. Any such extension of the powers of national banks must be left to the consideration of Congress. Respectfully, M. C. ELLIOTT, Counsel. To Hon. C. S. HAMLEST, Governor Federal Reserve Board. FEBRUARY 1, 1916. Consolidation of Two or More National Banks—Right to Operate Branches. A national bank may purchase the assets of other liquidating national banks, but such consolidation does not give the right to such national bank to operate branches anywhere in the United States. JANUARY 8, 1916. SIR : The following question has been referred to this office for an opinion: Whether the Federal Reserve Board would permit the establishment of branch banks under the following circumstances: "The capital of the A National Bank, at present, is $300,000, and it is contemplated increasing the capital to $500,000. In doing so, it is proposed to take over, with the increased capital, the present capital stock of the B National Bank, which is $100,000, and the O National Bank, which is $50,000.. The balance of the increase in the capital stock of the A National Bank to be distributed as the stockholders elect." It is not entirely clear, from the question submitted, just what method of procedure is proposed. If it is contemplated that the A National Bank, as a corporation, is to become the purchaser of the stock of the other two banks, such an arrangement would be contrary to the provisions of the national-bank act, which do not permit national banks to hold stock in other corporations. If, on the other hand, it is proposed to purchase from the B National Bank and the C National Bank their assets, paying therefor with stock in the A National Bank, such a course will involve the liquidation of the two banks purchased, and the A National Bank, as the surviving corporation, can not, under the law, establish branches in the city in which it is located or anywhere in the United States. I am of opinion, therefore, that the plan submitted can not be carried out' without violating the provisions of the national-bank act. Respectfully, M. 0. ELLIOTT, Counsel. To Hon. CHARLES S. HAMLIN, Governor Federal Reserve Board. FEBRUARY 1, 1916. FBDEEAL RESERVE BULLETIN. GENERAL BUSINESS CONDITIONS. General business and banking conditions are described in reports made by Federal Reserve Agents for the 12 Federal Reserve Districts/as of approximately January 22. Below are given in detail digests of. conditions in the various districts substantially as reported by Federal Reserve Agents. DISTRICT NO. 1—BOSTON. Business has. continued its upward trend throughout the month and improvement is reported in nearly all-lines of trade. The longer established and more conservative merchants, however, are proceeding with caution. Manu* facturers are scrutinizing orders and there is a very general inclination to restrict production to actual requirements, refraining from anything bordering on speculation. The labor situation is again causing uneasiness, largely due to the fact that certain.manufacturers, more especially those having foreign orders on which large profits are expected, are yielding to the demand of their employees for increases rather than run the risk of having their output retarded. This influence has unsettled labor working on regular domestic orders. The money market is dull and rates continue low. Call money is 3 per cent; commercial paper 2\ to 3 per cent for short dates #nd 3 to 4 per cent for six months; town notes, six months, 2 to 2J per cent, longer periods, 2-J to 3 per cent; 90-day bankers' acceptances 2 per cent upward. Loans and discounts of Boston Clearing House banks show a decrease of $4,521,000 from last month, and demand deposits have increased $164,000 in the same time. The amount "Due. to other banks" on January 15 was $128,008,000, an increase of $11,396,000 during the last month. The excess reserve of these banks has increased from $31,584,000 on December 18, 1915, to $43,329,000 on January 15, 1916. Exchanges of the Boston Clearing House for the week ending January 15, 1916, were $197,134,000 as compared with $157,873,678 for the corresponding week last year and $192,350,968 for the week ending December 18, 1915. Building and engineering operations in New England from December 15, 1915, to January 12, 1916, were $14,789,000, the largest for over 10 years, and an increase of $8,686,000 over the same period last year. Exports at the port of Boston for December, 1915Vwere $10,805,887, an increase of $499,782 over December, 1914, and over double those .of December, 1913. Imports at the port of Boston during December, 1915, were $18,905,580, an increase of $10/527,432 over the same month last year, and $6,087,890 more than in December, 1913. Receipts of the Boston post office for December, 1915, show an increase of over $70,000 or about 8 per cent over December, 1914. The first 15 days of January, 1916, show an increase over the same period last year of $47,423, or about 13 per cent. The. two most important railroad systems in this district continue to report increased earnings; the Boston '& Maine Railroad reporting ''net after taxes" for the five months ending December 1 as $5,991,179,; an increase of $ l r 828,429 over the same months last, year; and the'New Haven reporting "net after taxes" for the same period as $10,714,858, an. increase .of $3,041,808. All the railroads in this section have had much difficulty in handling the increased amount of freight offered them, and in some cases this has necessitated an embargo. There were 85 failures in this district during December, 1915, with liabilities of $977,033 as compared with 166 failures with liabilities of $1,367,200 during the same month last year. • Both the woolen and worsted mills report increased business and are running at capacity. The heavy-weight season, which is just com.mencing, opened auspiciously, and the prospects are for good business. The boot and shoe industry continues to improve,, domestic orders becoming more and more a factor each month. The high, price of leather, the changing styles, and the uncertainty of the future, have caused manufacturers to FEDERAL EESEBVE BULLETIN. caution tlie retailer against purchasing beyond Ms present needs. Activity is reported in the dry goods market, due to the extraordinarily large retail holiday trade and the necessity of replenishing depleted stocks of merchandise. The cotton mills are running full. The market for fine and fancy goods is strong, and the mills are well sold up. Buyers are placing forward orders, and in some goods there is an active demand for early shipments, which are hard to obtain. There is a good demand for print cloths at rising prices. Mill men are anxious for forward orders at present price levels, with cotton and other manufacturing materials high and rising. The market for bonds is steadier and a large volume of business is being done, a good demand coming from banks, corporations, and private investors. DISTRICT NO. 2—NEW YORK. Wholesale, jobbing, and retail trade were all very active during December, and in the latter trade the holiday business was of record volume. Interviews and correspondence with many public service corporations, manufacturers, and business houses have confirmed the marked improvement and unusual activity of trade and industry reported in recent months. Some observers have noticed a tendency to overbuy. Collections are generally good. Announcements have been made of a number of important wage increases. Congestion of export freight traffic in and near New York was somewhat relieved last week by a reduction of approximately 3,000 cars of export package and piece freight from the quantity of the previous week. But the railroads estimate that between 45,000 and 50,000 cars of freight are still held up in terminals or on the tracks. In many cases new embargoes have been imposed, while old ones are modified or abolished. During the year 1915 there were cleared from the port of New York 4,915 ships, an increase of 873 over 1914. Their tonnage of 13,094,230 shows a decrease of 457,274 tons FEBRUARY 1, 1916. from the previous year, owing to the withdrawal of the larger trans-Atlantic liners. New York Clearing House banks on January 1.5, 1916, reported loans, etc., $3,263,860,000, deposits $3,510,286,000, and excess reserves $172,518,370. Since November 27,1915, loans, etc., have increased $130,625,000, deposits have increased $148,149,000, and excess reserves have decreased $10,958,970. Other statistics for December, 1915, compared with December, 1914, are the following: Exchanges through the New York Clearing House $12,331,140,315, an increase of $5,801,464,857. Transactions on the New York Stock Exchange: Par value of bonds sold $122,142,000, an increase of $86,715,000, but decreased $4,834,000 from the previous month. Transactions in stocks 13,732,300 shares, an increase of 11,857,318, but decreased 3,742,463 from previous month. New incorporations in the Eastern States of companies capitalized at $1,000,000 or over, $135,125,000, an increase of $29,675,000. New York State failures 347, with liabilities of $4,606,373, a decrease of 45 in number and $875,927 in liabilities. New York City building permits $11,189,188, an increase of $7,559,987. Exports from the port of New York $216,809,179, an increase of $118,939,854. Imports at New York $94,792,790, an increase of $28,551,429. Acceptances of the national and State banks and trust companies in this district on December 31, 1915, aggregated $69,635,261. Five million dollars 6 per cent Kingdom of Norway bonds were underwritten in New York and offered to the public on January 19 at 101J. Renewal rates for call money ranged from If to 2 per cent, and the high rates for the day advanced to 2 | per cent toward the end of December. Time money on collateral was 2\ to 3 per cent for 60 days to 4 months, and 3 to 4 per cent for 6 to 12 months' loans. Bankers7 acceptances were quoted from 2 to 2f per cent and commercial paper ranged from 2f to 3J per cent, with prime six months' notes readily salable at 3 per cent. In December, Sterling exchange quotations at closing rates strengthened from 4.70f to FEBRUARY 1, 1916. FEDERAL RESERVE BULLETIN. 77 4.73f. Paris checks fluctuated between 5.81 fidence in the continuance of the stability of and 5.871. Berlin checks declined from 79| to business conditions. One of our industries which has never been 75J and demand bills on Amsterdam moved more prosperous than at present is the silk from 41J to 43.37. industry. The market value of the 1912 outDISTRICT NO. 3—PHILADELPHIA. put in Pennsylvania alone is stated by the On account of the belief that much of the Bureau of Industrial Statistics of this State to business, with which the manufacturing plants have been $81,500,000, which is an increase of of this district are now engaged, is of a tem- about $18,000,000 over the value of the product porary character, there is not the underlying in 1911. There has been a steady increase in confidence in trade conditions that the existing the number of plants and the output, so that industrial activity may seem to justify. Ex- the silk industry has become a very important cept for this feeling on the part of the com- one. The demand for silk garments has inmunity, there is no change in conditions from creased so rapidly that at this date most of the those reported one month ago. The great mills are running full time, where labor is holiday trade, and some difficulty in obtaining obtainable, and many are operating day and goods, has emphasized the necessity of dealers night. Considerable numbers of new mills and carrying larger stocks, and increased orders are additions to plants are reported. The throwsters and weavers both report business active being placed. Some of the indices as to business conditions with the best prices for a number of years. Raw materials, especially dyestuffs, have inat this time are as follows: Favorable features.—-Continuance of the un- creased in price, and this is slightly affecting precedented foreign trade; tendency to min- the amount of sales. There is a steady demand mize effects of munition business and empha- for broad silks, the ribbon silk business is still size development of domestic trade; extra depressed. The question of securing labor is a large business in steel and iron products, at serious one, and some of the mills are continuhigh prices; improvement in railroad earnings— ally advertising for help. Earnings are said record figures in some cases; gain in amount of to be satisfactory, and collections good. new building construction; enlargement of Conditions among the laboring classes are many manufacturing plants; 1915 crops better better than for several years. It is generally than 1914; bank clearings running ahead of reported that the demand for skilled labor, 1914; good collections; less unemployment and especially mechanics, exceeds the supply, and increased wages in some industries; brisk retail unskilled labor can secure all the work desired. buying—high priced goods being bought in- A scarcity of unskilled labor is reported from stead of lowest priced; backward deliveries of certain sections, partly due to the exodus of a large per cent of foreign labor, because of the merchandise. Unfavorable features.-—Railroad freight tie- war, and also to the demand for workers in up at eastern terminals, with embargoes on munitions plants in other cities. Wages for all certain classes of freight at certain cities; insuf- classes of labor are good, averaging 10 to 15 ficient railroad equipment to handle freight; per cent higher than 18 months ago. Common 7 lack of ships for foreign trade; high pricQ of laborers,'' pick and shovel men/ are being paid building materials which may curtail opera- 17 to 20 cents an hour and other laborers of tions; threatened anthracite coal strike and a slightly better grade are receiving 25 to 30 Wilkes-Barre traction strike; rising costs of cents an hour. So long as labor is satisfactorily employed, manufacture, including labor and raw materials, especially dyestuffs; a certain lack of con- the consumption of goods by the workers will 78 FEDERAL EESEEVE BULLETIN. FEBRUARY 1, 1916. be large, and general business consequently Post-office receipts in the same cities for Demust be good. cember, 1915, show an increase of 14.1 per cent, the totals for that month being $1,357,018.47 DISTRICT NO. 4—CLEVELAND. against $1,189,513.41 for 1914. The situation in the steel trade may be said There were 2,407 building permits issued in to be the determiner of general business condi- these- six cities in. December, 1915, compared tions of District No. 4. Therefore the reports with 1,640 for December, 1914, representing an on all kinds of business at this time continue to increase of 30.3 per cent in valuations. The be favorable. total valuation of building operations in these Every operation which can turn out either cities for 1915 was $75,978,345, compared with pig iron or steel is running to capacity without a total for 1914 of $70,602,676. satisfying the unusual demand. The price The head of one of the largest coal companies situation is a little feverish, and the high-point in this district reports that the present condiof $1.90 for shapes and bars and. $2 for plates tion of the coal business is superior to any has been reached. Coke is selling at $5. The similar period for 8 or 10 years. unfilled orders; on the books of. the steel corImprovement in the railroad situation over poration at the opening of 1916 were 7,806,220 the holiday season in respect to the car congestons, the largest ever reported under the present, tion has permitted freer operations among method. One of the first fruits of this over- several important industries and has added to swift return of prosperity was the steel strike coal mining and coke production. at Youngstown early in January. It. presented Every form of glass trade is increasing in an ugly situation for a few days, and the settle- volume, with window glass the most active. ment has resulted in an increase in wages Additions and extensions to the plants and new amounting approximately to 10 per cent. works and factories are reported all over the. This with other announced increases means district, especially in the steel and rubber insome falling off in net earnings of the larger dustries. concepis, but with a continuance of present Mercantile lines show continued -strength in volume and prices, profits even with the in- volume of business. Credit men report lines crease in wages will be satisfactory. in many instances being extended considerably Money is still plentiful-,, the lowest rates ever beyond those heretofore granted, but reports recorded for commercial loans in this district in general show accounts in first-class shape, being offered in the- centers. In. the smaller with no developed evidences of overbuying. communities the demand is spotted. Some The approximate figures of commercial report a good demand at usual rates, while failures in this district as reported by R. G. others report a slow demand at lower rates. Dun & Co. are $773,600 for December, 1915, It is becoming quite the practice in the agri- and $6,716,000 for 1914. cultural districts of Ohio to option or contract The prosperity of the farmers has reflected for sale of land for March .1 delivery. These itself in the making of improvements. Many transactions take quite an amount of. money farmers in this district are building modern and will stimulate demand in, certain localities. houses, barns, silos, and new fencing. The. member banks in. the Reserve Cities of this %he outlook for all lines of industry and trade district- on December 31, 1915, reported total in this district appears reasonably clear for at deposits of $459,014,000,. an increase of$97;- least the first half of 1916. 154,000 over December 31, 1914. . The clearings in the six largest cities for the first half of DISTRICT NO. 5—RICHMOND. General business conditions in the Fifth ReJanuary, 1916, totaled $380,313,140,04, against $296,705,763.59 for the same period of 1915, serve District during the past 30 days have been very satisfactory in almost every line of an increase of 28.2 per cent. FEBRUARY 1, 1016. FEDERAL RESERVE BULLETIN. activity. Retailers report tliat routine business is good, and further advise that holiday sales were gratifying in both quantity and quality. Both city and country merchants are placing orders with manufacturers and jobbers more freely than for two or three years, especially in the metal industries. In the Carolinas, farmers generally are in better position both in relation to their debts and future prospects than for a long time. Last year's crops brought good prices, permitting wholesale liquidation, while diversification tended to make farms self-sustaining. A good acreage has again been planted in wheat, and while many farmers announce their purpose to plant a large crop of corn, it is possible that with a continuance of the present high prices for cotton the acreage of spring planted grains will be diminished. For the reason that essential chemicals can not be had in supply sufficient to permit the employment of usual formulae in the manufacture of fertilizers in normal quantity manufacturers and consumers during this year will operate under most unusual conditions. In 1915, the farmers used little more than half the amount of commercial fertilizer to which they had been accustomed. The consequence of forced diminution in the use of chemicals, particularly potash, may be shorter crops than could otherwise be expected. The cotton movement has been very light. Its holders are unwilling to sell even at present prices. While it is admitted that current quotations mean good profits, it is a very generally held opinion that the coming crop wil not be large and that in consequence prices will further advance. Tobacco growers hold a like opinion, reasoning that it would be impossible for them to make their crops without certain chemicals which they will not this season be able to obtain as usual. Lumber is now in strong position and mills are committed to advance orders which will keep them busy for some time in the future. Cotton milling on the whole showed fair results during the past year, with immediate 79 prospects of better conditions, particularly where the mills are not called upon to use dyestuffs. Some properties which a year ago bought cotton in quantity at 8 cents a pound or under have shown flattering results. At export points there has been a congestion of grain, awaiting shipment, due to the lack of transportation facilities. Given an adequate supply of ocean carriage, both the railroads and their terminals can easily care for the situation. Grain is, however, becoming congested under existing conditions and has caused embarrassment not only to the shippers of grain but to the railroads and their customers in other lines. One effect has been that ocean freights are now from 100 to 150 per cent higher than last year in some directions. For some commodities the increase has been even greater. The corn crop has only begun to move from the West, and it is feared that congestion in the movement, after the grain has reached the seaboard, will result in conditions injurious to the trade, particularly should another great crop of grains be grown this year. Money is in plentiful supply throughout the district, a condition evidenced in part by the fact that member banks in the district now owe less for borrowed money than is usual even in January. The loan line of its reserve bank is now $1,800,000 below its amount as reported in August last. Individual banks in the Carolinas report that they are loaning some share of their funds at a rate as low as 4J per cent. Present very easy conditions are apt to continue until the general spring demands are met in March next. DISTRICT NO. 6—ATLANTA. Reports from business centers in this district indicate that the temporary improvement in the fall months has crystallized into a more permanent p:rosperity. Money is plentiful and many new industries are reported under way. Labor is quite fully employed. The railroads are letting contracts for new work, and with the recent increase in rates it is expected that they will make large improvements. 80 FEDERAL RESERVE BULLETIN. There is a strong "undercurrent of optimism among real-estate dealers following the period of great inactivity for the past 18 months. The building records show quite an improvement, and builders have made plans for the erection of many large structures in the new year and are confident that the record of the past 12 months will be exceeded by a substantial margin. Collections are reported as good. Wholesalers of dry goods report exceedingly good trade for this season of the year, with the statement that the only real hindrance is to get hold of the right kind of goods, owing to the shortage of dyes tuffs and the embargo on wools. The hosiery mills of Tennessee are reported running behind on orders. In the Chattanooga district nearly all manufacturing plants are running full time. Five new manufacturing plants have been put under way within the past month, and it is estimated the capital invested represents $1,500,000, giving employment to 2,500 men, In the Birmingham district iron and steel industries continue to do a big business. More iron is being sold than is being produced, and the production is the heaviest in the history of the industry. Prices continue to range from $15.50 to $16.50 per ton. All the iron that was sold several months ago at the minimum price has been delivered, so that all iron now being shipped is at a good profit. In view of the shortage of coke a number of old ovens have been put in operation. New ore mines are being opened. In the steel plants all are running at a maximum output, and labor is assured of steady employment in the district. In the Tennessee tobacco district very little of the 1915 crop has been brought to market, with a considerable percentage of the 1913 and 1914 crops still in the warehouses. The grade of the 1915 tobacco is below the average, and while the prices obtained are comparatively low with last season they are considered fairly good for the quality of tobacco. In view of the good-sized crop and low grade a decline is expected in prices. Shipment to foreign countries is hampered by lack of shipping facilities and high freight rates. FEBRUARY 1, 1916. In the Savannah naval-stores district there is a brighter outlook for the future. Strenuous efforts have been made during the past 18 months with a view to reducing production, the result showing a decrease, and the trade is feeling the effect of upward prices. At present the supply of both turpentine and rosin is assuming a more normal state and the industry is in a much more healthy condition. New Orleans reports general conditions throughout that section as unusually good. Interest rates have shown no particular change and are still low, with little demand for loans. The weather has been favorable for cane production, and with the considerable increase in acreage a much larger crop is expected. The sugar market has shown some improvement lately and a more active market is expected. Offerings of spot cotton from the interior have been limited and local factors are not offering freely. Cotton at New Orleans in presses are 409,805 bales as against 272,430 this date, 1915; on shipboard 34,174 against 89,478 for 1915. While Liverpool continues to advance owing to the actual general demand for cotton by British spinners and the scarcity of the article on the other side of the Atlantic, American markets remain practically at a standstill owing to the inability to export cotton because of lack of shipping facilities and prohibitive freight rates. The general cotton market remains unchanged, with a big holding movement in force. The domestic lumber market continues to advance. Increased buying by railroads and building industries does much to replace the normal export shipment. While the demand is yet below possible production the market is in a much more healthy and stable condition and present prices permit profitable production, with tendency to higher levels. Altogether the outlook in this line is encouraging. DISTRICT NO. 7—CHICAGO. Reports in the Seventh Federal Reserve District indicate generally increasing activity. The large steel companies show a demand in excess of the capacity of the mills, with prices proportionately firm. Building is quite active, FEBRUARY 1, 1916. FEDEBAL BESEBVE BULLETIN. noticeably so in those localities which are benefiting by the present conditions, while other cities report improving prospects. Lumber is more in demand, prices are better, and a still further improvement is anticipated. Study of the grain markets shows that prices have been well maintained, due to a good demand from abroad, the speculative sentiment of the farmers, and the possibility that before long Europe will require some of our corn crop. One interesting comment is to the effect that the statisticians figure, as a general rule, the United States, Canada, Australia, and Argentina have between them about 250,000,000 bushels of wheat more than the importing countries which can import will require. Winter wheat is reported as in satisfactory con-* dition, with an acreage slightly less than last year, but it is too early to make an accurate forecast as to the result of the crop. The movement of live stock to market is heavy, with good prices and a steady demand. One authority advises us that the supply of hogs in the district has been large, but they have been marketed freely, which may cause a shortage next summer. The wholesale dry-goods business is brisk, with purchasers anticipating their wants on account of the possibility of higher prices and scarcity of merchandise. Dyed and printed goods are in short supply, wool is scarce, and this may have the effect of retarding the volume of business next fall unless the situation is relieved. Inclement weather has somewhat decreased the business of the Chicago department stores of late, but the trade as a whole reports increasing retail purchases, and collections are satisfactory. The grocery business claims improving prospects, although many sections report that it is barely normal. Hardware is in good demand, and furniture manufacturers are optimistic in view of increased orders. Automobile sales are well maintained, and it is the general impression that this section will, at least for the coming year, continue to absorb a substantial number of cars. The piano business, usually a good trade barometer, indicates an improvement in the 81 manufacturing and retail departments, with the likelihood of an increase in price owing to the higher cost of materials. Coal mining in Illinois is active, due to the requirements of the steel and allied industries. The agreement of the United Mine Workers with the coal operators expires April 1 next, and a considerable quantity of coal is being purchased for storage by the railroad companies. The freight movement in this district is heavy considering the car shortage. Chicago clearings from January 1, and including January 19, showed an increase over the same period last year of more than $100,000,000, while 18 other cities in the district showed clearings for the first 15 days of January of $201,000,000, as against $162,000,000 for the first 15 days in 1915. Large Chicago savings banks report smaller proportionate withdrawals during the course of the January interest period than has been the case in some years. A survey of the situation shows improvement in almost all lines, although Iowa is suffering somewhat from the result of its partial crop failure last year. This is being noticed in some localities by collections below normal, without distinct promise of present improvement. The other States are faring better, with collections from fair to good. DISTRICT NO. 8—ST. LOUIS. The healthy, prosperous business condition which has developed in this district in the past few months continues. Reports received from practically every branch of industry in the district show a general increase in shipments. In only a very few cases have shipments been reported below the normal, and many firms report gains as high as 40 per cent. Reports made to this office contain many statements such as: Fort Smith.—On account of the1 large feed crop which we have in this section, we feel that our community is at least 30 per cent better off than it has been since the 1910 crop. Little Rock.—Shipments increased 25 per cent. Another report says: Collections 10 per 82 FEDERAL RESERVE BULLETIN". cent better this year. Past due accounts 20 per cent less. Louisville.-—The last three months of 1915 especially showing an increase over any corresponding month of any year before. Memphis.—Our business 33J per cent increase in December, and collections about 40 per cent increase. Another report says: Past due accounts considerably fewer than the threeyear average. St. Louis.—Shipments 120 per cent and collections 119 per cent of average last three years. Another report says: Sales for December 43 per cent above normal. Retail merchants throughout the district experienced a large and profitable holiday trade. They report that the attitude of their customers has changed. A few months ago, the general public was buying the more popular priced and cheaper grades of merchandise, whereas to-day they are making their selections from the better grades. The customary reaction after the holidays does not seem to be as severe as usual. The public utility companies report an increase in the total number of passengers carried for every quarter of the year. This fact seems to be of some significance, for the prevailing opinion is that the general use of automobiles has affected the street car companies, especially in the smaller cities and the interurban lines. A study of the gross and net railroad earnings for December furnishes additional testimony as to the general revival of all business. Practically all of the railroads operating in this district show increases both in gross and net earnings for December. This is particularly true of the railroads operating in the northern section, where really substantial gains have been made. Authorities on railroad operations contend that while a part of this gain represents a recovery of the loss in 1914, the improvement far outshadows the falling off, and this is at least in part due to the fact that railroads are operating on the economical basis which they were forced to establish a year or more ago. There is a shortage of cars in this FEBRUARY 1, 1916. district, and the movement of freight toward the east is somewhat hampered by lack of terminal facilities. Building permits also show substantial increases, St. Louis alone reporting a gain of about 68 per cent for December, 1915, as compared with the same month a year ago. This revival, of course, affects the business of lumbermen, contractors, hardware, and allied lines. The decrease in the number and total of liabilities of commercial failures in 1915 furnishes a striking index to business conditions. Period. First quarter... Second quarter. Third quarter.. Fourth quarter Number. Liabilities. 1,413 1,047 936 928 $33,000,000 13,000,000 9,885,000 8,000,000 While the total number of failures for the entire year is greater than either 1913 or 1914, it appears that the total of the liabilities has been very materially decreased. The banking interests of the district still hold excess reserves, particularly in the larger centers and are in excellent position to take care of all legitimate business demands. In fact, the larger banks are actively in the market for commercial paper, and in many cases have been forced to invest their surplus funds in bonds and other securities in which they do not normally invest. There has been no increase in bank rates to customers or on commercial paper. The bank rate to customers in the larger centers seems to be fixed at 4J to 5 per cent, with the rate in smaller communities somewhat higher and subject to local conditions. Commercial paper is selling freely at 3 and 3 \ per cent, and brokers report a scarcity of available paper. The bond market shows the influence of bank purchases and is correspondingly active. In December this bank cleared 202,876 items for a total of $84,559,718.57, by far the biggest month both as to number of items cleared and total of amount. FEBRUARY 1, 1916. FEDERAL RESERVE BULLETIN. DISTRICT NO. 9—MINNEAPOLIS. Business in all lines is on a very solid foundation, with large orders ahead and output guaranteed for at least the first half of the year. This is especially true of the flour-milling industry, the iron and steel concerns, and the lumber and paper mills. The Comptroller's call of December 31 showed a good increase in loans and discounts of the banks at the larger centers in this district, and since the first of the year there has been an obvious improvement in the demand for money, but without changes in rates, which are still at a very low level. The Calumet & Hecla has announced 10 per cent wage increases guaranteed until June 1, covering 12,000 men in the northern Michigan copper industry. The Steel Corporation has made a similar announcement covering its northern Minnesota mines, and the larger independent operators have taken similar action. Increases have been granted by a number of smaller concerns, and labor is fully employed at good wages. The lumber business is the last to return to a normal basis, but is very active. The mills are working full time against orders which guarantee large production for practically all of 1916. The local yards, which bought cautiously during all of 1915, find their stocks are low, and are buying freely. Prices have advanced $3 to $3.50 per thousand on the grades representing the larger volume of sales, with still better advances on better grades. Cattle and hogs on soft-corn feed have not done well, and the immense forage crop proves to have only a moderate value. As a result there have been very heavy shipments of light hogs and cattle to the South St. Paul and Chicago markets, and many farmers have been forced to bring in corn at 75 cents to carry sttick through the winter. There will probably be a shortage of spring beef, and the marketing of light hogs is an unfavorable condition, indicating future high retail prices. Crop-year receipts at Minneapolis and Duluth aggregate 184,009,000 bushels of grain, as against 117,915,000 for the same period a year 83 ago, an increase of 66,094,000 bushels. Even with this remarkable increase in receipts elevator stocks are still behind last year, amounting to 25,863,000 bushels, as against 27,146,000 bushels, and as against 31,371,000 bushels in 1914. Terminal stocks have been increasing during the month, but are still very far short of capacity. Flour production is still very heavy. The price situation as to wheat is remarkable. Cash grain has commanded a premium since the beginning of the crop year, and while the daily fluctuations have been erratic each week has brought an advance. Farmers who have been and are holding wheat have realized excellent profits. In the face of very heavy receipts, the price has stubbornly advanced by degrees, with no present indications of receding. The very favorable market has put an immense sum of money into the hands of the farmers, and this is reflected in good collections and active trade at country points, with a correspondingly beneficial influence upon wholesale lines. DISTRICT NO. 10—KANSAS CITY. Weather conditions prevailing generally throughout District No. 10 have been seasonal and normal. Heavy snows, which are so essential to the growth of winter wheat and to furnishing a supply of water for irrigation purposes during the ensuing summer, have fallen in almost all parts of the district, and there has been no untimely or|excessive cold. The movement of grain to the market centers has been accelerated during the past 30 days, and while it has not been abnormal, it has been a movement which has been retarded up to this time by reason of farmers holding their wheat and other grains for higher prices. This movement of grain to the markets has caused considerable liquidation, has added largely to the deposits in the banks of the district, and has lessened the demand for money. Most of the banks of the district|have an excess of loanable funds and are amply able to take care of legitimate requirements of their^eustomers. 84 FEDEBAL RESERVE BULLETIN. Rates of discount show no material change during the past 30 days and rule from 5 to 8 per cent according to locality and security offered. Probably at no previous time in the history of the district has the wholesale and retail trade assumed such large proportions. The holiday trade was unprecedented and cash was paid for most purchases, and all lines of industry report exceptionally good collections. The movement of live stock to the market centers is normal with prices fairly satisfactory except upon dressed beef cattle. Unless there is an improvement in prices, cattle feeders will almost without exception lose upon the season's operations. There is an abundance of forage and grain and the winter loss will be very much below the average. Kansas City is probably the world's largest hay market and this year the market has been peculiarly active, both in the assembling of supplies and in their distribution. Alfalfa from Kansas, Colorado, Nebraska, Wyoming, and New Mexico is marketed at this center and distributed throughout the New England States, the Carolinas and Virginias, and Gulf Coast States, as well as all intervening territory. Prairie hay from Kansas, Colorado, Oklahoma, and Nebraska is regularly handled here, and this city has supplied at different times almost every important market in the country, North, East, and South, and has exported to Cuba, Isthmus of Panama, the Philippines, and to Europe. The receipts of hay for the crop year of 1914-15 aggregated about 35,000 cars, and, in addition to this, there were about 10,000 cars handled by Kansas City firms direct from producers to consumers. The mid-continent oil field continues exceptionally active. New leases are being taken and an unusual amount of drilling and prospecting is under way. The demand for timbers and structural steel is strong, occasioned by the high prices being paid for the crude product. The prevailing price in this field is a trifle in excess of $1.20 per barrel. High prices for lead and zinc have stimulated production and this industry is experiencing the greatest prosperity in its history. FEBRUARY 1, 1916. The district is practically free of labor disturbances, and while there are some idle men in the large cities of the district, as is always the case at this season of the year, all lines of labor, both common and skilled, are very generally employed. DISTRICT NO. 11—DALLAS. The general outlook in this district is optimismtic. Preparations for the 1916 crops are under way, and if the weather permits, rapid progress will now be made in this direction. There are a few reports that the recent cold weather has killed some small grain, but they are not sufficient to affect the crop outlook generally. It is, of course, too early to make a forecast as to the fruit crop. The cold of the past month, however, has been sufficiently severe to do some damage to the citrus fruits and vegetable gardens of southern Texas. The cold weather was beneficial in destroying the insect pests that are always harmful in the agricultural districts during mild winters. Optimism prevails among manufacturers. While this district has not benefited as much as some of the others in recent heavy purchases of saddlery and harness, horses and mules, its normal output has been materially increased. There has been a good demand for goods locally and factories are running on full time. Member banks continue to experience only a normal demand for loans. This is to be expected at this season, and it will probably be 60 days yet before this condition changes. There has been very little change in rates during the past month, and they continue easy. Statements of our member banks show largely increased deposits over last year. Comparison of the deposits of the banks in the Texas reserve cities alone, excluding nonmember banks, shows an increase of approximately $28,000,000 over 19.14. A large increase in clearings is also reported from practically all of the larger cities of the district. Dallas banks showed an increase of approximately $48,000,000 over a year ago. All sections of the district report a holiday trade almost unprecedented in volume, and the demand for high-grade goods was especially FEBRUARY 1, 1916. FEDERAL RESERVE BULLETIN. noticeable. Our information is that in manyinstances stocks were almost cleared, and wholesalers have enjoyed one of the largest seasons in their history. Collections are reported, as improving and are above the average for this season. Reports from Oklahoma indicate that practically all the cotton crop has been marketed. In Texas, however, it is estimated that 25 per cent of the crop is still held. It is not thought that there will be any material reduction in the acreage in 1916. Good prices are obtaining for rice, and it is believed that 65 to 75 per cent of the 1915 crop has passed from the farmers' hands. The balance is being held for higher prices. Eough rice is active at present prices, but clean rice is not moving so well. Operations in the oil fields of the district continue active, and the prices obtaining are the best in the history of the fields. Production in the northwestern Louisiana districts, composed of Caddo, Red River, and De Soto Parishes, amounted in the aggregate to 14,881,022 barrels, compared with 12,210,598 barrels in 1914. Present prices for the product are stimulating operations. Railroads report an increase in freight traffic of 15 per cent over the previous year. Passenger traffic is good, and shows a slight increase over the corresponding period last year. Larger cities of the district report an increase in post-office receipts of approximately 25 per cent. Recent bad weather conditions have affected building operations. Considerable work is under way, and with open weather prevailing there should be renewed activity. Labor continues in good demand, and there is no evidence of any unemployment. DISTRICT NO. 12—SAN FRANCISCO. Pacific coast precipitation is principally included in four months, December to March, with annual averages ranging from approximately 16 inches at Los Angeles to 35 at Seattle. Abundant precipitation is counted a sure forerunner of good crops, a confident expectation of which for the current year is based upon 85 a rainfall materially above the seasonal average at this date. There is also an unusual depth of snow in the mountains, assuring irrigation next summer. Reports from throughout this district confirm the harvesting and profitable marketing of large crops during the past year, with a consequent general expansion of trade not infrequently reaching new records in volume and profits. Wheat, barley, sugar beets, hops, beans, oranges, prunes, raisins, apples, have all given good net profits to growers. Table grapes were also profitable, approximately 10,000 carloads being shipped by California alone. Peach and apricot growers have profited less, but are now organizing for cooperative marketing to secure more economical and uniform distribution. In this they have adopted the successful methods of growers of citrus fruits and raisins. Alfalfa is said to have yielded as much as $15 per ton when fed to stock. Live-stock interests are doing well. The petroleum industry of California is benefiting by advancing prices, occasioned both by broadening markets and expanding consumption, and by a decline in production of 13,000,000 barrels last year, as compared with 1914. Metal mining—gold, silver, copper, lead—is very active. The stimulus which activity of one industry transmits to another is well illustrated by the purchase for Arizona mines of 10,000,000 feet of timbers. Important purchases of lumber, particularly for mines, railroads, and for export to Australia, have advanced prices from $1 to $3 per thousand, and brought much encouragement to the lumber sections. From 100 to 150 sailing vessels are now carrying lumber from Pacific coast ports to Australia, and a number of vessels are building for this trade. All shipyards are exceedingly busy and rapidly extending their operations. The Comptroller's last call shows an increase of more than $80,000,000 in deposits in the national banks of the seven reserve cities of this district during the past year. Conservatism is evidenced by the fact that loans and investments during the same period increased only $8,000,000. Credit conditions are consequently easy. 86 FEDEBAL EESEEVE BULLETIN. FEBRUARY 1, 1916. DISTRIBUTION OF DISCOUNTS BY SIZES for Atlanta and New Orleans and $2,430 for Chicago. AND MATURITIESAbout 36.5 per cent of the total number of The total of commercial paper, exclusive of bills and 49.6. per cent of the total amount bankers7 acceptances, discounted during De- discounted during December were bills in cember, 1915, amounted to $15,412,000, a amounts ranging between 1,000 and 5,000 total of 15 per cent below the total for Novem- dollars. Bills of the largest size (i. e., in ber, but larger than for any other month of the amounts over $10,000) constituted 17.6 per past year. Of the total amount of discounts cent of the total discounts for the month, as reported, the share of the three southern banks against 22 per cent shown for the month before. was 62.3 per cent; the share of Kansas City, In the case of Atlanta and its New Orleans 11.7 per cent; and that of Chicago, 14.4 per branch the share of these largest-size bills was cent. Out of the 12, only 5 banks appear to 31.3 per cent of the monthly total, being largely have been active in the rediscount field during commodity paper secured by cotton and disthe report month, these 5 banks reporting counted at the 3 per cent rate. Small bills (in 88.4 per cent of the total discounts granted denominations up to $250) constituted over 19 during the month by all the reserve banks, per cent of the entire number, though less than as against 86.7 per cent in November. Chicago 1.5 per cent of the total amount of the paper is the only bank which reports a considerable discounted during the month. The Richmond bank reports 571 and the Atlanta bank 387 of increase in discounts for the past month. Commodity paper, $2,939,500, mostly se- such bills. Over 60 per cent of the number and amount of all small bills discounted during cured by cotton, constitutes 19.1 per cent of the month were handled by these two banks. the total discounts for the month, compared with 23.9 per cent for November, and 13.7 per Of the total amount of paper discounted durcent in October. About 62.2 per cent of this ing December, 1.9 per cent was 10-day, 16.4 per paper was handled by the Atlanta bank and cent 30-day, 32.9 per cent 60-day, and 34.2 its New Orleans branch and 30.5 per cent by per cent 90-day paper. Over 2.25 millions, or the Richmond bank. A total of $514,000 of 14.6 per cent, was agricultural and live-stock trade acceptances was discounted during the paper, maturing after 90 days at the time of month by six banks, and in addition $31,600 rediscount. The largest amounts of 10-day of this class of paper was purchased by the and 30-day paper were discounted during December by the Chicago bank. Richmond Boston bank in the open market. reports the largest amounts of 30-day and The total of paper discounted during the 60-day paper, while Dallas leads in the amount past calendar year by the 12 banks was of 6-month paper handled during the month. $161,353,000, of which about two-thirds was The number of member banks which redishandled by the three southern banks, less than counted with the Federal Reserve Banks during 20 per cent by the four western banks, a little December was 725, compared with 837 in Noover 10 per cent by the four eastern banks, vember, 796 in October, and 762 in September, and 4.6 per cent by San Francisco. and constituted about 9.5 per cent of the The total number of bills discounted during entire number of member banks shown at the the month was 8,095, compared with 9,652 in end of the year. About one-half of the redisNovember and 9,285 in October. The average counting banks were southern banks. The size of the paper discounted in December by largest absolute and relative number of banks all the banks was slightly less than $1,904, as accommodated is shown for the Atlanta disagainst $1,893 in November, $1,621 in October, trict, viz, 131 out of 387, or 33.8 per cent of the and $1,249 in June, marking the gradual and total. This total is 50 less than in November, steady increase in the average size of the paper a relative decrease about equal to the relative handled. During the past year the monthly decrease shown for the total amount of paper average varied in the case of the more active discounted by the bank and its branch during banks from $1,500 for Richmond to $2,415 December of the past year. 87 FEDERAL RESERVE BULLETIN. FEBRUARY 1, 1916. Commercial paper, exclusive of bankers' acceptances, rediscounted by each of the Federal Reserve Banks during the month of December, 1915, distributed by sizes. NUMBER OF PIECES AND AMOUNTS. [In thousands of dollars.] $100 Over $250 To $100. Over to $250. to $500. Over $500 to $1,000. Over $10,000. Over $1,000 Over $2,500 Over $5,000 to $5,000. to $10,000. to $2,500. Total. Per cent. Bank. •S8 Boston New York Philadelphia... Cleveland Richmond . Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco. Total.. 15713.7 13910.3 64 4.1 10 31 31 15 414 248 71 21 25 80 156 2.0 5.1 4.6 2.5 73.8 41.7 12.0 3.8 4.5 15.5 27.3 1.4 12.1 18.3 30.6 8.9 418.7 173.5 143.1 42.6 75.7 159.8 174.3 15.3 5.3 11.8 14.7 7.6 530 212.5 219 84.2 116 46.8 56 21.3 58 21.2 129 49.0 202 78.6 2.1 11 19.4 25 34.7 21 38.8 16 32.5 431 733.9 267 478.1 249 448.0 79 128.3 109 161.1 256 401.1 290 51 73.6 96.2 47.4 27.6 47.1 2951,211.5 231 953. 171 747.4 48 167.0 20 65.9 132 507.3 186 14 49.4 78 132 148 10.2 79 261.72,449 521,110.51,469 377.0 914 72.8 288 30.7 326 390.1 888 430.01,.,211 32.6 113 49.0 14.0 21.3 749.7 694.9 442.4 138.1 50.2 284.4 480.4 58.5 184. 131. 117. 130. 3,675.5 3,547.0 2,220.8 574. 409. 1,-8 2,379.9 233.0 1.0 1.6 1.8 1.0 30.2 18.1 11. < 3.6 4.0 11.0 15.0 1.4 1.2 .9 23.9 23.0 14.4 3.7 2.7 11.7 15.4 1.5 458 36.01, 111 194.21,418 555.11,6261,272.91,805 3,037.91,150 4,617.4 390 2,982.9 137 2,715.6 8,09515,412.0100.0100.0 PERCENTAGES OF AMOUNTS OF EACH CLASS TO TOTAL. To $100. Bank. Boston . . . New York Philadelphia. Cleveland Richmond Atlanta. Chicago St. Louis Minneapolis Kansas Citys. Dallas San Francisco Total 0.1 .3 1.1 . .4 .3 .2 .1 .1 .2 .2 Over $100 to $250. Over $250 to $500. Over $500 to $1,000. Over $1,000 to $2,500. Over $2,500 to $5,000. Over $5,000 to $10,000. Over $10,000. Total. 1.1 3.9 3.9 1.9 2.0 1.2 .5 .7 1.1 .8 1.1 .6 2.9 9.0 12.5 5.9 5.8 2.4 2.1 3.7 5.2 2.7 3.3 .9 6.6 13.9 26.0 6.8 11.4 4.9 6.4 7.4 18.5 8.8 7.3 6.6 10.5 26.3 33.0 25.0 20.0 13.4 20.2 22.3 39.4 22.2 20.5 31.6 52.2 36.0 23.5 36.2 32.9 26.9 33.7 29.1 16.1 28.1 29.3 21.2 16.4 20.4 19.6 19.9 24.0 12.2 15.7 20.2 25.1 7.8 7.1 31.3 17.0 12.7 7.5 21.6 18.1 14.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1.3 3.6 8.3 19.7 30.0 19.3 17.6 100.0 26.6 10.6 88 FEDERAL RESEBVE BULLETIN. FEBRUARY 1, 1916. Commercial paper, exclusive of bankers' acceptances, discounted during December by each of the Federal Reserve distributed by States and maturities as of date of discount. Banks, [In thousands of dollars.] Paper maturing after 10 days but within 30 days. Paper maturing after 30 days but within 60 days. Number of member banks. Number of banks accommodated. Paper maturing within 10 days. 73 70 168 56 18 48 1 3 2 1 42 25.0 2 15.4 3.0 17.0 433 9 44.6 23.2 New York 132 483 1 11 1.1 Total 615 12 24 70 534 Districts and States. District No. 1—Boston: Connecticut..... Maine. Massachusetts New Hampshire. Rhode Island Vermont , Total District No. 2—New York: District No. 3—Phildelphia: Delaware. New Jersey Pennsylvania - Total District No. 4—Cleveland: Kentucky Ohio Pennsylvania West Virginia.. Total District No. 5—Richmond: District of Columbia Maryland.. . North Carolina South Carolina.... Virginia West Virginia Total District No. 6—Atlanta: Alabama Florida Georgia Louisiana Mississippi Tennessee . Total District No. 7—Chicago: Illinois Indiana Iowa Michigan Wisconsin Total District No. 8—St. Louis: Arkansas Illinois Indiana Kentucky Mississippi Missouri Tennessee Total... District No. 9—Minneapolis: Michigan Minnesota Montana North Dakota South Dakota . Wisconsin Total . ... . ... : 3.2 60 11.0 13.8 Paper maturing after 60 days but within 90 days. Paper maturing after 90 days. Total commercial paper discounted. 20.0 13 3 39.5 2.3 37.0 23.5 85.0 3.3 41.3 75.1 184.2 5.0 16.6 2.2 58.3 .5 47.1 0.9 8.8 122.9 1.1 21.6 60.5 . 47.6 .9 131.7 1 12 3.5 10.1 35.8 15.8 26.4 19.0 7.0 39.3 78. S 628 13 13.6 51.6 26.4 19.0 7.0 117.6 72 375 301 14 2 5 4 16 11 0 75 6.8 25 7 9.2 5.4 39 5 13.8 9.6 77 8 40.1 12.2 762 11 1.6 25.3 40.3 53.3 9.6 130.1 14 98 81 74 137 104 1 6 32 35 32 6 9.7 12.9 1.0 10 2 2.8 305.4 124.4 87.2 5.2 32 9 67.4 583.8 529.2 268.0 22.0 31.3 96.9 671.4 496.9 209.4 25.6 1.0 21.7 9.2 50.0 74.4 168.1 1,592.0 1,172.6 615.6 52.8 508 112 23.6 535.1 1,503.3 1,531.5 81.9 3,675.5 95 55 117 5 18 97 31 12 52 5 7 24 5.0 58 0 44.4 118 3 142.1 231.4 12.1 55.0 403 0 158.7 603.6 170.2 .2 245 0 75.3 650 5 165.0 64.7 166.5 174.8 3.2 848 1 283.4 1 603 8 335.2 76.8 399.7 387.0 131 5.2 287.8 1,367.0 1,510.3 376.7 3,547.0 317 197 348 77 51 13 14 50 4 2 121.5 763.8 26.0 18.9 295.8 123.2 81.7 31.3 12.0 51.4 101.1 266.2 4.3 5.0 34.5 58.6 219.2 4.3 2.0 1 ; 267.0 308.9 586.0 39.9 19.0 990 83 121.5 808.7 544.0 428.0 318.6 2,220.8 62 157 61 69 17 81 20" 6 11 4 7 5 8 4 6.0 6.3 85.8 4.8 19.3 12.3 39.0 43.9 21.3 17.9 24.2 13.6 5.8 26.6 6.2 .4 18.5 11.2 17.9 54.9 75.0 15.8 23.8 21.5 2.5 42.6 76.8 61 8 82.5 178.7 72.5 59.6 467 45 6.6 122.2 217.1 172.2 56.4 574.5 31 279 66 152 119 88 1 26 1 20 14 19 44.6 2.6 26.5 10.6 20.0 22.3 4.1 83 12.6 1.5 102.1 3.1 22 8 67.7 20.0 175.4 7.2 51 0 101.3 54.5 735 81 29.1 17.0 68.8 .196.4 409.4 6.4 9.5 1.0 36.4 19 9 18.4 15.2 98.1 89 FEDERAL EESEEVE BULLETIN. FEBRUARY 1, 1916. Commercial paper, exclusive of bankers' acceptances, discounted during December by each of the Federal Reserve Banks, distributed by States and maturities as of date of discount—Continued. [In thousands of dollars.] Districts and States. Number of member banks. Number of banks accommodated. Paper maturing within 10 days. 119 220 53 206 9 308 33 2 23 8 29 5.0 40.0 948 83 6 26 28 42 545 647 District No. 10—Kansas City: Colorado Kansas Missouri Nebraska . . . New Mexico Oklahoma Wyoming Total District No. 11—Dallas: Arizona Louisiana New Mexico Oklahoma Texas ... . . Total District No. 12—San Francisco: Alaska „ Arizona California Idaho. Nevada Oregon Utah.... Washington Total Paper maturing after 60 days but within 90 days. Paper maturing after 90 days. Total commercial paper discounted. 12.4 249.0 266.1 73.8 12 0 73.1 41.2 143.1 14.7 110.0 65.9 65.5 44 0 630.1 602.3 305.6 9.6 50.9 65.0 100.8 226.3 413,8 652.2 340.4 356.9 1,808.3 1 4 7 10 96 1.8 65 11.0 7.5 183.7 2.5 72 1 9.2 21.2 422.0 6.5 85 9 7.0 22.8 743.3 105.4 24.5 647.0 20.0 164.5 123.4 76.0 1,996.0 118 210.5 517.8 865.5 786.1 2,379.9 7.0 17.2 7.2 60.3 9.7 53.5 143,0 16.9 5 2.1 2.5 35.5 8.4 48.5 4 2.8 6.0 14.2 1.6 24.6 11.9 32.9 119.7 63.5 233.0 16 2 529 Paper maturing after 30 days but within 60 days. 4 9 193.0 189.1 17.2 21 1 7 266 58 10 86 23 78 Paper maturing after 10 days but within 30 days. 27 45.0 5.0 5,0 RECAPITULATION. Districts and cities. No. 1.—Boston No, 2.—New York No. 3.—Philadelphia.. No. 4.—Cleveland No. 5.—Richmond No. 6,—Atlanta No. 7.—Chicago No. 8.—St. Louis No. 9.—Minneapolis... Kansas City... Dallas San Francisco. Total number of member banks reported. 433 615 628 762 508 387 990 467 735 948 647 529 Total for December. Per cent Totals for— November.. October September. August July June May April March February.. January 7,646 7,649 7,630 7,610 7,606 7,607 7,605 7,611 7,614 7,617 7,610 Number of banks accommodated. Paper maturing within 10 days. Paper maturing after 90 days. Total commercial paper. Per cent. 5.0 23.2 21.6 51.6 25.3 535.2 287.8 808.7 122.2 17.0 413.8 210.5 11.9 41.3 60.5 26.4 40.3 1,503.3 1,367.0 544.0 21?. 1 68.8 652.2 517.8 32.9 75.1 47.6 19.0 53.3 1,531.5 1,510.3 428.0 172.2 98.1 340.4 865.5 119.7 0.9 7.0 9.6 81.9 376.7 318.6 56.4 196.4 356.9 786.1 63.5 184.2 131.7 117.6 130.1 3,675.5 3,547.0 2,220.8 574.5 409.4 1,808.3 2,379.9 233.0 1,2 0.9 0.8 0.8 23.9 23.0 14.4 3.7 2.7 11.7 15.4 1.5 296.9 1.9 2,528.8 16.4 5,071.6 32.9 5,260.7 34.2 2,254.0 14.6 15.412.0 '100.0 100.0 214.2 2,516.6 165.2 1,995.2 131.7 1,698.2 320.2 1,380.1 103.4 1,612.4 1,810.3 1,631.5 1,239.0 1,798.6 2,957.4 4,109.3 6,242.0 5,327.4 6,180.0 4,990.9 4,512.5 3,905.3 3,800.8 3,500.9 5,257.4 5,421.8 3,627.0 6,791.2 5,671.0 5,306.5 4,520.1 5,294.3 5,187.2 4,331.1 4,166.4 5,162.9 3,265.8 2,365.1 2,505.7 1,892.0 1,088.6 1,022.4 1,715.4 2,503.2 2,382.3 1,643.0 1,180.8 885.3 611.4 18,269.7 15,050.8 14,405.0 12,233.7 13,238.0 13,406.0 12,145.7 10,549.3 13,399.7 12,530.3 10,712.8 9 12 13 11 112 131 83 45 81 83 118 27 44.6 1.1 13.6 1.6 23.6 5.2 121.5 6.6 29.1 45.0 725 9.5 837 796 762 693 796 785 716 617 570 469 Paper Paper Paper maturing maturing maturing after after after 10 days 30 days 60 days but within but within but within 30 days. 60 days. 90 days. 90 FEDERAL .RESERVE B U L L E T I N . Amount FEBRUARY 1, 1916. of trade acceptances discounted by each Federal Reserve Bank from Sept. 2, date of first discount, to Dec. SI, 1915, {In thousands of dollars.] Trade acceptances discounted during month of— Federal Reserve Bank. Octo- Novem- Decem- Total. September. ber. ber. ber. New York Cleveland .,... Richmond.. Atlanta (including New Orleans branch) St. Louis T .'. Kansas City Dallas San Francisco . Total 1 1.6 10.6 259.2 12.3 4.5 2.5 28.8 . . . . 319.5 4.8 2.7 100.1 402.6 37.1 59.4 22.4 0.9 .6 145.7 205.6 13.8 71.8 37.9 19.9 194.1 139.7 104.6 11.5 61.0 3.1 629.1 496.2 514.0 U,958.8 5.7 4.9 450.5 1,007.1 167.8 87.8 160.8 74.2 In addition to the total shown above, the Boston Federal Reserve Bank, on Dec. 31, 1915, held also $31,600 of trade acceptances bought in the open market. Amounts of commodity paper discounted by each Federal Reserve Bank from Sept. 8, date of first discount, to Dec. 81,1915. [In thousands of dollars.] Commodity paper discounted during month of— Federal Reserve Bank. Octo- Novem- DecemSepTotal. tember. ber. ber. ber. 364.4 1,523.4 96.0 807.3 1,657.2 2,739.1 1,828.7 31.2 53.6 15.0 11.3 1.5 12.5 148.3 4.8 83.7 2.3 35.7 1.5 Richmond Atlanta (including New Orleans branch) . St. Louis Minneapolis Dallas -. San Francisco 2,881.4 7,032.3 99.8 25.3 239.1 37.2 905.6 2,094.8 4,375.2 2,939.5 10,315.1 Total. Classes of commodity paper discounted by each Federal Reserve Bank from date of first discount to close of business on Dec. SI, 1915. Cotton Rice . Cottonseed cake Cottonseed Sugar Yarn Peaches (evaporated).... Wheat Seed. Corn . Oats Grain Timber Pig iron Apples Peanuts Hay Miscellaneous Richmond. Atlanta (including New Orleans branch). $2,880,816 $6,378,867 75,000 36 313,332 20,000 10,000 80,188 2,100 3,000 . . St. Louis. Minneapolis. San Francisco. l $237,573 1,522 $800 « 25,000 10,000 $35,701 $20,075 1,539 673 529 20,000 3,492 600 100 125,000 63,962 5,217 2,881,489 7,032,244 99,752 25,292 1 Dallas. All discounted at regular rates. 239,095 37,240 Total. $9,498,056 1,522 75,000 36 313,332 20,000 45,701 125,263 10,000 2,100 3,000 1,539 529 20,000 3,492 600 100 194,842 10,315,112 Amounts 91 FEDERAL RESERVE BULLETIN. FEBRUARY 1, 1916. of commercial paper, exclusive of bankers7 acceptances, held by each Federal Reserve Bank on Dec, SO, 1915, distributed by maturities. [In thousands of dollars.] Paper maturing within 10 days. Federal Reserve Bank. Boston New York Philadelphia Cleveland Richmond Atlanta, including New Orleans branch Chicago St. Louis Minneapolis Kansas City Dallas San Francisco.. . Total Per cent Paper maturing after 10 days but within 30 days. Paper maturing after 30 days b u t within 60 days. Paper maturing after 60 days but within 90 days. Paper maturing after 90 days. Total. Per cent. ^ 58.3 37 5 41 5 169.0 1,028.8 1,131.8 486.5 249.9 217.3 630.4 1,092.9 86.0 66.5 98 7 64 6 99.6 2,717.5 1,973.5 1,234.8 393.0 163.9 1,056.2 1,056.6 86.8 91.7 82 5 36.7 170.1 2,752.9 2,722.-3 876.2 374.3 196.4 841.1 1,079.2 130.8 19.0 18 9 17.6 67.9 933.1 1,273.0 720.5 132.8 211.7 521.4 693.6 83.9 11.7 32.5 74.4 1,030.8 687.4 104.9 510.2 532.4 1,035.2 62.9 235.5 237.6 172.1 539.1 7,506.7 8,131.4 4,005.4 1,254.9 1,299.5 3,581.5 4,957.5 450.4 0.7 07 0.5 1.7 23.2 25.1 12.4 3.9 4.0 11.1 15.3 1.4 5,229 9 16.2 9,011 7 27.8 9 354 2 28.9 4,693 4 14.5 4,082 4 12.6 32,371.6 100.0 100.0 ACCEPTANCES. Bankers1 foreign-trade acceptances, by classes, held by the Federal Reserve Banks each week. [In thousands of dollars.] Nonmember banks. " Date. banks. December 27,1915. Januarys, 1916.... January 10,1916... January 17,1916... January 24,1916... 1 13,790 15,494 16,492 16,908 16,348 Trust companies. 5,697 7,160 7,293 6,857 7,282 State banks. banks. 292 362 370 425 364 Total. 820 822 938 1,010 1,441 20,599 23,838 25,093 25,200 125,435 Acceptances indorsed by member banks: Trust companies, §40,000; private banks, $441,000; total, $481,000. In addition to the foreign trade acceptances shown above, the Federal Reserve Banks held, on January 24,1916, also a total of 108 bankers' domestic acceptances, amounting to $797,729, and distributed by sizes as follows: 40 items up to $5,000, amounting to $118,196; 56 items from $5,000 to $10,000, amounting to $432,617; and 12 items from $10,000 to $25,000, amounting to $246,916. Distribution of bankers7 foreign trade acceptances held by Federal Reserve Banks, 1916, by classes of acceptors and sizes. To $5,000. Over $5,000 to $10,000. Over $10,000 to $25,000. "3 Class of acceptors. Over $25,000 to $50,000. according to schedules on hand Jan. Over $50,000 Over $100,000. to $100,000. 24, Total. m II Member banks... Trust companies. State banks Private banks Total. Per cent 135,000 39,002 1,795,525 1,255,347 105,000 95,185 2,362,358 45,000 657,718 250,324 2,917,136 1,861,067 78,500 399,188 1,389,870 3,251,057 9,463,922 103 4,053,617 5,255,891 5.5 12.8 676,436 539,432 37.2 3,231,215 572,078 15.9 20.7 1,329,086 691,882 885 16,348,244 534 7,282,164 363,500 74 1,441,417 10 2,020,968 1,541 7.9 25,435,325 100.0 64.3 28.6 1.4 5.7 100.0 92 FEDEBAL EESEBVE BULLETIN. FEBRUARY 1, 1916. Amounts of acceptances held by the several Federal Reserve Banks at close of business on Fridays, Dec. 23, 1915, to Jan* 21, 1916. [In thousands of dollars.] BostonMaturities within 10 days: Dec 23 1915 Dec 30 1915 . . Jan 7 1916 Jan 14 1916 Jan. 21,1916 From 11 to 30 days: Dec 23 1915 Dec 30 1915 Jan 7,1916 Jan 14 1916 Jan 21 1916 From 31 to 60 days: Dec 23 1915 Dec. 30,1915 Jan 7 1916 Jan 14 1916 Jan 21 1916 From §i days to 3 months: Dec 23,1915 Dec 30 1915 Jan 7 1916 Jan. 14,1916 Jan 21 1916 Total acceptances held: Dec 23 1915 Dec 30'1915 Jan 7 1916 Jan 14 1916 Jan. 21,1916 - -. New Phila- Cleve- RichYork. delphia. land. mond. 568 285 409 714 839 482 748 1 036 1,011 1,016 447 73 292 220 493 84 10 107 145 70 851 1,338 1,424 1 608 1,812 1,558 1,977 1,402 1 595 1,556 383 591 676 664 709 175 235 252 205 226 2,820 2,559 2,945 2,518 2,795 2,152 1,844 2,780 3,117 4,246 1,169 1,107 818 792 846 281 257 357 298 414 2,462 2,311 2,089 2,338 2,529 3,348 4,146 4,330 4,543 3,768 610 772 726 770 306 186 302 226 292 292 6,701 6,493 6,867 7,178 7,975 7,540 8,715 9 548 10,266 10,586 2,609 2,543 2 512 2,446 2,354 726 804 942 940 1,002 Atlanta. Chicago. San Total St. Minne- Kansas for Louis. apolis. City. Dallas. Francisco. system. 7 166 25 204 196 251 96 29 71 73 138 33 14 61 78 116 49 22 52 53 42 85 30 32 65 108 2,010 1,236 2 264 2,555 3,080 7 7 7 19 279 481 637 906 806 102 184 194 165 156 75 160 153 121 140 67 105 115 75 179 125 188 250 175 149 3,615 5,266 5,110 5 521 5', 752 100 19 57 57 38 1,057 905 838 578 963 311 239 285 294 344 234 172 212 205 196 179 150 207 235 191 334 256 275 290 385 8,537 7,508 8 774 8 384 10,518 100 150 150 150 50 46 8 136 336 417 605 649 719 485 131 210 209 361 302 92 131 123 119 153 88 152 121 107 127 106 178 269 263 212 7,540 9,003 8,900 9,798 8,560 100 150 150 150 150 72 72 200 400 1,919 2,016 2,328 2,399 2,505 640 661 759 893 940 434 478 549 523 605 383 429 495 470 539 650 652 826 793 854 21,702 23,013 25 048 26,258 27,910 Amounts of acceptances purchased by the several Federal Reserve Banks to Nov. 30, and for the month of December, 1915, distributed by maturities. [In thousands of dollars.] Acceptances maturing— Within 30 days: Feb m to Nov 30 D8c©mt)8r Total, calendar year 1915 After 30 but within 60 days: Feb 19 to Nov 30 D ecemb er Total, calendar year 1915 After 60 days b u t within 3 months: Feb. 19 to Nov. 30 December. Total, calendar year 1915 Total acceptances bought: Feb 19 to Nov 30. December Total, calendar year 1915 New Phila- CleveBoston. York. delphia. land. 470 27 739 507 497 1,246 410 285 695 Richmond. 101 101 Atlanta. Chicago. San St. Minne- Kansas Louis. apolis. City. Dallas. Francisco. Total. 7 141 15 103 42 3 69 61 7 156 103 45 69 61 2,136 844 2,980 19 609 207 347 27 169 22 179 4 726 24 8,054 1,003 19 816 374 191 183 750 9,057 = 1,667 470 1,261 203 746 2,137 2,350 27 2,377 1,464 746 9,047 2,424 17,101 5,110 3,944 1,462 1,804 312 100 150 46" 4,131 679 1,090 234 1,081 138 1,371 165 2,196 223 41,865 10,943 11,471 22,211 5,406 2,116 250 46 4,810 1,324 1,219 1,536 2,419 52,808 11,184 12,921 20,190 5,644 5,615 1,950 2,651 312 100 150 72 4,881 901 1,540 261 1,292 163 1,619 169 2,983 247 52,055 12,790 14,105 25,834 7,565 2,963 250 72 5,782 1,801 1,455 1,788 3,230 64,845 i Includes $31,600 of trade acceptances bought in the open market. FBBEDAET 1, 1916. 93 FEDEKAL EBSEEVE BULLETIN. FEDERAL RESERVE BANK STATEMENTS. Resources and liabilities of each of the Federal Reserve Banks and of the Federal Reserve System at close of busvnessfon Fridays, Dec. SO, 1915, to Jan. 21, 1916. RESOUECES. [In thousands of dollars.] Boston. Gold coin and certificates in vault: Dec. 30,1915 Jan.7,1916 Jan. 14,1916 Jan.21,1916 Gold settlement fund: Dec. 30,1915 Jan.7,1916 Jan. 14,1916 Jan.21,1916 Gold redemption fund: Dec. 30,1915 Jan.7,1916. Jan. 14,1916 Jan.21,1916 Legal-tender notes,silver3, etc.: Dec. 30,1915.. Jan.7,1916 Jan. 14,1916 Jan.21,1916 Total reserve: Dec. 30,1915 Jan.7,1916 Jan. 14,1916 Jan.21,1916 Bills discounted—Members: Dec. 30,1915 Jan 7,1916 Jan. 14,1916 Jan.21,1916 Bills bought in open market: Dec. 30,1915 Jan.7,1916 Jan. 14,1916 Jan.21,1916 United States bonds: Dec. 30,1915 Jan.7,1916.. Jan. 14,1916 Jan.21,1916 Municipal warrants: Dec. 30, 1915.... Jan.7,1916 Jan.14,1916 Jan. 21,1916... Federal reserve notes, net assets: Dec. 20,1915 Jan. 17,1916 Jan.14,1916 Jan.21,1916..... Due from other Federal reserve banks, net: Dec. 30,1915 Jan.7,1916 Jan.14,1916 Jan.21,1916 All other resources: Dec. 30,1915 Jan.7,1916 Jan.14,1916 Jan.21,1916 Total resources: Dec. 30,1915 Jan. 7,1916 Jan.14,1916 Jan.21,1916... 1 New York. Philadelphia. 14,097 16,673 16,591 17,463 168,965 169,138 159,451 155,783 6,440 5,915 10,027 11,806 4,279 1,603 2,087 1,270 6,717 8,707 7,253 10,326 8,695 8,897 8,092 5,513 Cleve- Richland. mond. Atlanta. 5,223 5,941 5,601 5,636 4,872 5,020 5,230 5,096 35,162 37,298 30,788 29,932 2,967 3,180 3,167 3,017 2,700 3,053 11,042 9,875 11,661 10,222 12,013 10,574 11,892 11,934 3,717 3,321 3,526 3,580 1,256 2,372 10,164 11,859 6,072 7,580 6,197 4,766 334 334 312 307 307 318 305 9,559 9,600 9,683 9,610 55 172 162 55 St. Minne- Kansas Dallas. Chicago. Louis. apolis. City. Francisco. 3,103 8,381 8,590 8,595 8,606 3,975 3,964 4,009 4,010 4,355 3,944 3,901 3,641 2,464 2,151 2,784 3,114 8,941 8,812 11,880 9,506 9,533 8,957 4,768 25 25 24 21 30 30 30 30 107 107 107 107 260 260 256 253 120 163 177 211 259 374 464 499 5 15 7 5 11,072 13,435 11,011 13,410 11,663 14,235 12,038 13,719 14,090 15,991 14,165 9,817 4,205 4,096 4,625 5,044 Total for system. 266,546 272,018 260,855 259,106 77,293 81,150 85,630 81,620 si. i"HS 1,124 T 1,250 1,215 1,062 361 696 1,327 1,758 7,477 5,379 4,478 3,297 3,097 3,773 4,684 5,247 1,211 1,298 1,420 1,559 67 109 164 156 185 148 240 181 630 702 1,005 810 138 176 184 20 93 141 225 18,743 18,987 20,011 20,494 183,214 183,396 171,344 169,461 18,232 18,585 22,803 22,566 21,812 32,559 23,116 23,061 15,499 16,156 16,651 18,014 9,081 8,796 9,314 9,162 37,048 40,372 41,957 42,601 9,157 10,923 9,564 7,988 7,105 7,120 7,160 6,999 235 206 200 208 237 234 206 175 172 164 149 182 539 445 411 386 7,507 7,331 7,106 6,759 8,131 7,388 7,208 6,575 4,005 4,167 3,929 3,512 1,255 1,216 1,241 1,152 1,299 1,169 1,140 1,121 3,581 3,414 3,206 3,197 6,867 7,178 7,975 8,715 9,548 10,266 10,586 2,543 2,512 2,446 2,354 942 940 1,002 150 150 150 150 72 72 200 400 2,016 2,328 2,399 2,505 661 759 893 940 478 549 523 429 495 470 539 1,973 2,791 2,991 2,991 2,357 2,400 2,404 2,470 25 25 25 4,218 4,242 4,246 4,313 970 971 1,091 1,491 1,304 1,329 1,393 1,458 2,119 2,129 2,182 2,188 870 870 1,295 1,295 330 330 330 330 1,256 1,163 1,173 1,466 292 332 332 453 911 880 961 288 278 253 349 72 76 76 76 345 335 335 450 12,220 17,097 19,484 20,624 1,695 1,665 1,666 1,686 817 719 740 795 818 992 1,209 1,269 1,301 1,221 2,641 5,394 21,910 24,156 29,943 34,895 1,367 1,991 2,022 2,507 4,439 5,045 5,007 4,783 147 1,599 1,158 1,594 169 969 119 430 6,186 6,725 5,887 3,485 2,210 2,931 2,533 1,060 1,182 1,045 1,170 104 118 108 174 6,547 7,078 9,805 10,688 20,685 21,427 19,602 20,761 22,107 19,800 21,077 22,374 20,533 22,663 491,110 499,087 507,579 511,326 3,041 3,171 3,332 3,307 1,269 6,128 7,238 7,189 1,538 1,448 2,457 2,957 2,846 2,767 2,920 2,926 709 780 901 15,877 17,821 21,499 23,630 401 496 675 436 292 462 612 705 3,668 3,515 2,212 1,110 830 551 1,158 1,671 949 152 287 445 650 788 103 130 134 111 1,531 2,209 1,864 239 187 226 342 700 1,492 2,522 3,612 87 100 103 107 29,454 31,149 24,499 30,095 31,130 25,596 32,448 31,883 25,148 32,427 31,889 25,346 19,217 19,371 19,405 18,786 60,363 60,310 62,321 62,312 15,219 18,403 18,405 18,938 16,391 17,215 17,415 17,303 1,629 219 1,477 2,227 431 346 446 590 441 415 442 346 32,267 31,562 34,531 36,767 209,753 217,542 210,995 211,387 927 584 927 941 158 158 160 617 4,957 4,391 4,301 4,275 933 Items in transit, i. e. total amounts due from, less total amounts due to, other Federal Reserve Banks. 13,525 12,888 14,283 14,132 m 358,488 367,306 361,983 355,920 450 406 401 416 32,368 30,531 29,498 27,958 652 854 23,013 25,048 26,258 27,910 1,000 1,000 1,000 3,025 15,797 16,734 17,613 20,242 1 20,767 1-11,137 112,995 113,089 94 FEDERAL RESERVE BULLETIN. FEBRUARY 1, 1916. Resources and liabilities of each of the Federal Reserve Banks and of the Federal^ Reserve System at close of business on Fridays, Dec. 80, 1915, to Jan. 21, 1916—Continued. LIABILITIES. [In thousands of dollars.] Boston. Capital paid in: Dec. 30,1915 Jan. 7,1916 Jan. 14,1916.. Jan. 21,1916..... Government deposits: Dec 30 1915 Jan. 7, 1916 ... Jan. 14,1916 Jan. 21,1916 Reserve deposits, net: Dec. 30,1915 Jan. 7,1916 Jan. 14,1916 Jan. 21,1916 Federal Reserve notes, net liability: Dec. 30 1915 Jan. 7,1916 Jan 14 1916 Jan. 21,1916 Due to other Federal Reserve Banks, net: Dec 30 1915 Jan 7 1916 Jan 14 1916 Jan. 21.1916 All other liabilities: Dec. 30, 1915 Jan 7 1916 Jan. 14,1916 Jan 21 1916 Total liabilities: Dec. 30, 1915 Jan. 7,1916 Jan. 14,1916 Jan. 21,1916 New York. Philadelphia. Cleve- Richland. mond. Atlanta. San St. Minne- Kansas Dallas. FranChicago. Louis. apolis. City. cisco. Total for system. 5,158 5,158 5,158 5,158 11,063 11,058 11,056 11,058 5,270 5,270 5,270 5,270 5,941 5,938 5,938 5,938 3,354 3,357 3,357 3,355 2,423 2,420 2,420 2,423 6,645 6,645 6,645 6,646 2,781 2,781 2,783 2,783 2,547 2,547 2,548 2,548 3,038 3,026 3,026 3,014 2,753 2,753 2,754 2,755 3,942 3,942 3,942 3,941 54,915 54,895 54,899 54,889 517 862 1,089 4,502 5,507 5,431 537 303 494 293 366 481 5,000 5,384 5,733 6,016 5,000 5,828 5,919 6,044 i 323 963 965 525 601 635 405 222 169 417 502 570 5,000 5,092 5,094 5,136 * 664 807 1,043 15,000 23,841 26,879 28,073 27,109 25,887 28,511 30,520 183,208 187,375 186,944 188,298 |24,184 |24,288 §26,471 125,400 25,208 24,899 25,579 25,470 10,856 11,157 iO,991 10,758 8,237s 8,173 8,326 7,999 53,718 53,988 54,713 54,701 12,337 15,097 15,021 15,520 13,844 14,263 14,645 14,586 14,180 14,829 15,018 15,930 9,646 9,787 9,875 9,795 17,485 17,501 17,625 17,679 400,012 407,244 413,719 416,656 5,266 5,674 5,038 5,184 3,456 2,849 2,635 2,216 1,478 1,330 1,254 1,324 3,286 3,129 3,021 2,847 8,010 14,607 7,486 6,600 404 1,263 333 7,472 32,267 31,562 34,531 36,767 209,753 217,542 210,995 211,387 29,454 30,095 32,448 32,427 13,486 12,982 11,943 11,571 31,149 31,130 31,883 31,889 23 24 29 "33 101 101 105 104 24,499 25,596 25,148 25,346 19,217 19,371 19,405 18,786 101 60,363 60,310 62,321 62,312 15,219 18,403 18,405 18,938 7,697 125 134 137 16,391 17,215 17,415 17,303 18,696 19,206 19,800 20,838 20,685 20,761 21,077 20,533 21,427 22,107 22,374 22.663 491,110 499,087 507,579 511,326 i Overdraft. Circulation of Federal Reserve notes at close of business on Fridays, Dec. SO,1915, to Jan. 21,1916. [In thousands of dollars.] Boston. Federal Reserve notes issued to the bank: Dec. 30,1915 Jan. 7,1916 Jan. 14, 1916 Jan. 21, 1916 Federal Reserve notes in the hands of the bank: Dec. 30,1915 Jan. 7,1916 Jan. 14, 1916 Jan. 21, 1916 Federal Reserve notes in circulation: Dec. 30,1915 Jan. 7,1916 Jan. 14, 1916 Jan. 21, 1 9 1 6 . . . . . . . . . Gold and lawful money deposited with or to the credit of the Federal Reserve Agent: Dec. 30,1915 Jan. 7,1916. Jan. 14, 1916 Jan. 21, 1916 Carried to net liabilities: Dec. 30,1915 . Jan. 7,1916 Jan. 14, 1916. Jan. 21, 1916 . . Carried to net assets: Dec. 30,1915 Jan. 7,1916 Jan. 14 1916 Jan. 21, 1916 New York. Phila- . Cleve- Richdelphia. land. mond. Atlanta. San St. Minne- Kansas Dallas. FranChicago. Louis. apolis. City. cisco. Total for system. 10,020 10,020 10,020 10,020 89,440 91,840 94,240 94,240 9,160 9,160 9,160 8,660 11,000 11,200 11,200 11,200 15,630 15,030 15,030 14,230 18,950 18,350 18,130 17,990 4,380 4,380 4,380 4,380 8,950 8,950 8,950 8,950 14,000 14,000 14,000 14,000 11,000 11,000 11,000 11,000 15,145 15,145 14,610 14,580 6,450 6,450 8,310 11,130 214,125 215,525 219,030 220,380 709 780 901 980 16,017 17,921 21,550 23,681 401 496 675 436 292 462 612 705 814 206 682 186 1,294 1,301 1,295 1,574 1,695 1,665 1,666 1,686 817 719 740 795 818 992 1,209 1,269 522 670 746 676 419 576 149 293 1,301 1,221 2,641 5,394 25,099 27,009 32,866 37,675 9,311 9,240 9,119 9,040 73,423 73,919 72,690 70,559 8,759 8,664 8,485 8,224 10,708 10,738 10,588 10,495 14,816 14,824 14,348 14,044 17,656 17,049 16,835 16,416 2,685 2,715 2,714 2,694 8,133 8,231 8,210 8,155 13,182 13,008 12,791 12,731 10,478 10,330 10,254 10,324 14,726 14,569 14,461 14,287 5,149 5,229 5,669 5,736 189,026 188,516 186,164 182,705 10,020 10,020 10 020 10,020 89,300 91,740 94,189 94,189 9,160 9,160 9,160 8,660 11,000 11,200 11,200 11,200 9,550 9,150 9,310 8,860 14,200 14,200 14,200 14,200 4,380 4,380 4,380 4,380 8,950 8,950 8,950 8,950 14,000 14,000 14,000 14,000 9,000 9,000 9,000 9,000 11,440 11,440 11,440 11,440 6,450 6,450 .8,310 11,130 197,450 199,690 204,159 206,029 1,478 1,330 1,254 1,324 3,286 3,129 3,021 2,847 5,266 5,674 5,038 5,184 ......... 709 780 901 980 15,877 17,281 21,499 23,630 401 496 675 436 292 462 612 705 3,456 2,849 . . . . . . . . 2,635 2,216 1,695 1,665 1,666 1,686 817 719 740 795 818 992 1,209 1,269 13,486 12,982 11,948 11,571 1,301 1,221 2,641 5,394 25,099 24.156 29,943 34,895 95 FEDERAL RESERVE BULLETIN. FEBRUARY 1, 1916. Statement of Federal Reserve Agents' accounts at close of business on Fridays, Bed 30, 1915, to Jan. 21, 1916. [In thousands of dollars.] Boston. Federal Reserve notes: Received from the ComptrollerDec. 30,1915 Jan. 7,1916 Jan 14,1916 Jan. 21,1916 Returned to the ComptrollerDec. 30,1915 Jan. 7,1916 Jan. 14,1916. Jan. 21,1916 Chargeable to the Federal Reserve AgentDec. 30,1915 Jan. 7,1916 Jan. 14,1916 Jan. 21,1916 In the hands of the Federal Reserve AgentDec. 30,1915 . . . Jan. 7,1916 ,. Jan. 14,1916...... Jan. 21,1916 Issued to Federal Reserve Bank, net— Dec. 30,1915 Jan. 7,1916 3an. 14,1916 Jan. 21,1916 Amounts held by Federal Reserve Agent: In reduction ofliability on outstanding notesGold coin and certificates on handDec. 30,1915.. Jan. 7,1916 Jan. 14,1916 Jan. 21,1916.. Lawful money on 16,360 106,240 16,360 108,240 19,380 * 108,240 19,380 108,240 500 500 500 500 Dec. 30,1915.. Jan. 7,1916... Jan. 14,1916.. Jan. 21,1916.. Memorandum: Total amount of commercial paper delivered to the Federal R e s e r v e Dec. 30 1915 Jan 7 1916 Jan 14 IQifi Jan. 21,1916 Philadelphia. Cleve- Richland. mond. Atlanta. Chicago. 12,480 12,480 15,480 15,480 12,600 12,600 13,000 13,000 20,400 20,400 20,400 20,400 9,380 9,380 9,380 9,380 640 640 640 640 80 80 120 120 17,000 17,000 17,000 17,000 San Minne- Kansas St. Louis. apolis. City. Dallas. Francisco. 9,600 9,600 9,600 9,600 19,000 19,000 19,000 19,000 11,000 13,000 13,000 13,000 120 120 120 120 Total for system. 19,580 19,580 19,580 19,580 10,000 10,000 11,360 11,360 263,640 267,640 275,420 275,420 61 61 61 81 230 230 230 230 1 631 1,631 1 671 15,860 15,860 18,880 18,880 106,240 108,240 108,240 108,240 11,840 11,840 14,840 14,840 12,520 12,520 12,880 12,880 17,000 17,000 17,000 17,000 20,400 20,400 20,400 20,400 9,260 9,260 9,260 9,260 9,600 9,600 9,600 9,600 19,000 19,000 19,000 19,000 11,000 13,000 13,000 13,000 19,519 19,519 19,519 19,499 9,770 9,770 11,130 11,130 262,009 266,009 273,74S 273,729 5,840 5,840 8,860 8,860 16,800 16,400 14,000 14,000 2,680 2,680 5,680 6,180 1,520 1,320 1,680 1,680 1,370 1,970 1,970 2,770 1 450 2,050 2,270 2,410 4 880 4,880 4,880 4,880 650 650 650 650 5 000 5,000 5,000 5,000 2,000 2,000 2,000 4,374 4,374 4,909 4,919 3,320 3,320 2,820 47,884 50,484 54,71S 53,349 10,020 10,020 10,020 10,020 89,400 91,840 94,240 94,240 9,160 9,160 9,160 8,660 11,000 11,200 11,200 11,200 15,630 15,030 15,030 14,230 18,950 18,350 18,130 17,990 4,380 4,380 4,380 4,380 8,950 8,950 8,950 8,950 14,000 14,000 14,000 14,000 11,000 11,000 11,000 11,000 15,145 15,145 14,610 14,580 6,450 6,450 8,310 11,130 214,125 215,525 219,030 220,380 10,020 10 020 10,020 10,020 89,300 91,740 94,189 94,189 4,160 4,160 4,160 3,660 10,470 10.670 10,670 10,670 3,950 10,000 3 950 10,000 3,950 10,000 3,950 10,000 2,000 2,000 2,000 2,000 9,540 9,540 9,540 9,540 Dec. 30,1915 Jan. 7,1916... Jan. 14,1916. Jan. 21,1916.. Credit balances in gold redemption fund— Dec 30 1915 Jan. 7,1916 Jan 14 1916 Jan 21 1916 Credit balances with Federal R e s e r v e BoardDec 30,1915 Jan. 7,1916 . Jan. 14,1916 Jan 21 1916 As security for outstanding n o t e s Commercial paperDec 30 1915 Jan 7 1916 Jan 14 1916 Jan 21 1916 Total- New York. 500 500 500 500 9,550 13,700 9,150 13,700 9,310 13,700 8 860 13 700 140 100 51 51 10,020 10,020 10,020 10,020 89,440 91,840 94,240 94,240 140 100 51 51 9,160 9,160 9,160 8,660 11,000 11,200 11,200 11,200 650 650 650 650 120 120 120 120 530 530 530 530 5,000 5,000 5,000 5 000 139,940 142,580 145,029 144,529 6,080 5 880 5 720 5,370 4,750 4 150 3,930 3,790 15,630 15,030 15,030 14,230 18,950 18,350 18,130 17,990 6,096 5,976 5 778 5,466 4,751 4,150 3 930 3,790 4,260 4,260 4,260 4 260 4,380 4,380 4,380 4,380 5,000 5,000 5,000 5 000 8,950 8,950 8,950 8,950 4,000 4,000 4,000 4 000 14,000 14,000 14,000 14,000 7,000 7,000 7,000 7,000 1,900 6,450 6,450 1,900 8,310 1,900 1 900 11,130 56,86C 56,460 58,480 60,850 2,000 2,000 2,000 2,000 3,705 3,705 3,170 3,140 16,675 15,835 14,871 14,351 11,000 11,000 11,000 11,000 15,145 15,145 14,610 14,580 2,002 2,006 2 003 2,008 3,751 3,958 3 810 3,829 6,450 6,450 8,310 11,130 214,125 215,525 219,030 220,380 16,740 16,190 15,572 15,144 96 FEDERAL BESEBVE BULLETIN. FEBRUARY 1, 1916. GOLD IMPORTS AND EXPORTS. Imports of gold, by customs districts, Jan. 1 to Dec. 31, 1915, and Jan. 1 to Jan. 21,1916. Total. Vermont. St. Lawrence. Michigan. Chicago. Dakota, Duluth and Superior. Buffalo. San Francisco. Southern California. Washington. Laredo. Alaska. El Paso. New Orleans. Arizona. Florida. Porto Rico, Rhode Island. Philadelphia. New York. Maryland. Massachusetts. Maine and New Hampshire. [In thousands of dollars.] Week ending Bee. 31,1915, Bullion, refined Foreign coin Total Jan. 1 to Bee. 81,1916. 4 258 378 11,124 i,447 193 482 1 11,764 1,447 675 3 138 49 7 7 187 = 79 81 32 11 5 160 43 5 .... 6 299 406 578 13,053 6 14,336 39 39 === 1 1 113 Ore and base bullion 13,653 443 375 145 23 128 1,328 7 3,967 5,211 5 180 1 1,688 United States mint or assay 162 12,467 office bars 12,629 13,465 39,484 27 10 3,553 14,361 . . . . 2,804 752 478 1,249 2/785 4 21,743 United States coin. 3 85,968 156,187 23 **6 24 48,390 13 5 Foreign coin ... .... 51,243 39,333 1 230,002 11,651 *50 *3 119,781 2,"507 4,407 30 . . . 996 Total, 1 1,688 140,554 5 1451,955 60,042 50 3 155,102 2/507 3 27 4,440 479 853 1,394 23 3,688 66,956 8 7,780 6,130 5 180 Week ending Jan. 7,1916. Ore and base bullion United States mint or assay Bullion, refined United States coin Foreign coin Total 7 273 85 16 15 3 •- 5,805 6,078 7 15 85 6 2 64 124 16 1 70 87 16 1 358 3 5,805 6,291 3 Week ending Jan. 14,1916. Ore and base^bullion United States mint or assay office bars Bullion, refined United States coin.. . Foreign coin Total 3 254 923 1,180 8 195 1 1 8 9 2 Week ending Jan. 21,1916. . Ore and base bullionUnited States mint or assay office bars Bullion, refined United States coin Foreign coin Total 19 ft 149 60 29 495 1 923 29 43 64 72 6— 55 20 6 — 60 30 18 3 911 3,674 4,615 30 5 30 23 . . . 3 59 92 59 147 20 . . . 6 .... 3 3 132 1 -- 1,065 36 3,674 1 4,907 = Jan. 1 to Jan. 21,1916. Ore and base bullion United States mint or assay office bars Bullion, refined United States coin Foreign coin. Total 1,597 = 33 1,438 10,402 11,873 26 13 32 5 3 32 31 16 2 205 37 31 112 18 . . . 254 . . . . 92 20 254 . . . . 297 i Includes $37,000 for Eagle Pass not shown in the table. 12 180 . . . 12 . . . . 407 79 79 5 1 31 1,917 42 10,403 6 -- 12,800 97 FEDERAL RESEKVE BULLETIN". FEBRUARY 1, 1916. Exports of gold, by customs districts, Jan. 1 to Dec. 81, 1915, and Jan. 1 to Jan. 21, 1916. Total. Vermont. St. Lawrence. Montana and Idaho. Michigan. Duluth and Superior. Buffalo. Washington. San Francisco. Alaska. Hawaii. El Paso. Porto Rico. New Orleans. New York. Maine and N e w Hampshire. [In thousands of dollars.] Week ending Bee. SI, 1915. Ore and base bullion.. .. United States mint or assay office bars . . . Bullion, refined, domestic United States coin... Foreign coin . Total 0 1 1,723 40 1 1,763 21 2 21 100 100 45 5 15 15 2 2,094 52 1 115 1,762 2,134 60 22 2,095 4,064 358 22 119 732 419 1,350 1 Jan. 1 to Bee. SI, 1915. Ore a n d base bullion . . U n i t e d States m i n t or assay office b a r s . . . Bullion, refined: Domestic *.. Foreign U n i t e d States coin Foreign coin Total... .. .. .. . 499 3 4 1 2 14,437 3,797 10 6 18,733 10 8 43 300 25 32 327 2 137 32 629 520 2 12 1 3 5 2 1,231 7,726 18 917 . . . . 131 1 457 5 17,096 11,666 2 13 2 9,697 19 30,093 90 1,279 Week ending Jan. 7,1918. United States mint or assay office bars United States coin Foreign coin Total 250 142 496 638 853 250 142 1,349 1,103 1,741 - Week ending Jan. 14,1916. Ore and base bullion United States mint or assay office bars Bullion, refined United States coin Foreign c o i n . . . . . . . . . . Total Week ending Jan. 21,1916. Ore and base bullion United States mint or assay office bars Bullion, refined: Foreign United States coin Foreign coin Total Jan. 1 to Jan. 21,1916. Ore and base bullion...... United States mint or assay office bars Bullion, refined: Domestic 509 548 200 8 101 61 1,257 8 162 9 5 1 9 767 102 617 458 1 1,953 258 14 511 === 15 15 1 500 500 15 1 2 1,000 15 1 3 509 101 1 United States coin Foreign coin 1,190 1,196 15 8 62 2 Total 2,895 15 8 163 3 253 2 15 750 24 5 503 2 105 2,027 2,307 750 1,111 2,364 1,786 24 1,017 3 29 3 1,268 500 750 3 5,480 98 FEDERAL RESERVE BULLETIN. FEBRUARY 1, 1916. CAPITAL AND RESERVE DEPOSITS. Statement of capital and reserve deposits, also percentage of capital to the combined amounts of capital and 65 per cent of reserve deposits. [Figures as of December 1,1915. In thousands of dollars.] Paid-in capital. Federal Reserve Bank of— Boston New York Philadelphia Atlanta Chicago St Louis Minneapolis Kansas City Dallas San Francisco Total . .. - Reserve deposits. 65 per cent of reserve deposits. Percentage of Paid-in capital capital to sum plus 65 per of capital cent of reserve and 65 per cent deposits. of reserve deposits. 5,171 11,061 5,270 5,931 3,354 /\ 2,421 \f 6,641 2,780 2,497 3,030 / 2,756 \ 34,942 27,252 171,144 23,728 24,436 115,149 2io 149 i12,100 2 7 ioo 52,545 12,502 13,557 13,692 114,053 2 9,053 17,331 17,714 111,244 15,423 15,883 9,847 6,597 7,865 4,615 34,154 8,126 8,812 8,900 9,135 5,885 11,265 22,885 122,305 20,693 21,814 13,201 9,951 10,286 * 7,036 40,795 10,906 11,309 11,930 11,891 8,641 15,207 22.2 9.0 25.5 27.2 25.4 33.7 23.5 34.4 16.3 25.5 22.1 25.4 23.2 31.9 25.9 54,854 \f i 397,489 2 382,489 258,368 248,618 313,222 303,472 17.5 18.1 1 Inclusive of $5,000,000 of Government funds. 2 Exclusive of $5,000,000 of Government funds. INDEX. Acceptances Advisory council, election of Agricultural implement paper Anonymous circular on stock subscriptions Business conditions Capital and reserve deposits, statement of Class C directors appointed Clearing-house balances, settlement of Commercial paper discounted Discount rates in effect Distribution of discounts Earnings and expenses of Federal Reserve Banks. Federal Reserve Agents' accounts, statement of... Federal Reserve Bank statements Federal Reserve Board, receipts and disbursements of Federal Reserve Bulletin: Bound copies of Cost of, to directors of member banks Federal Reserve notes, circulation of Fiduciary powers granted , Forms for reporting earnings and expenses Gold imports and exports Gold settlement fund Governors of Federal Reserve Banks, meeting of.. Holidays in reserve bank cities Page. Page. 91 Informal rulings of the Board 53 Purchase of United States bonds 87 Acceptance securities 53 Status of employees of reserve banks ,. 75-85 Eligibility of State banks 98 Circulating notes Cattle paper 52 Eligible acceptances 53 Status of class C directors 86-91 Paper of suspended bank 63 Farm land loans 86-91 56-59 Intradistrict clearing system, additions to and withdrawals from 95 93-95 Law department Transportation charges on Federal Reserve notes 54,55 Right of a national bank to increase amount of its circulating notes 53 Right of a national bank to write insurance 52 through its officers 94 Consolidation of national banks, right to oper70 ate branches 68, 69 Receipts and disbursements of the Federal Reserve 96, 97 Board 60-63 Resources and liabilities of Federal Reserve Banks. 52 Work of the Board 68 64-66 64 64 64 64 65 65 65 65 66 66 o 70 71-74 71 72 73 74 54,55 93, 94 51