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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
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86
91
93
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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 e 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 office1
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
44,539.14
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)
...

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.'66'

5.00
1.49

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

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

14,832.27

116.80

588.69
14.90

671.99

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

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
987

Total

"728.i4

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

3

1,662.06
157.11
207.74

79.14

56.15
8.00

22.43

33.98

305.63
136.31

418.63
72.43

3,523.45

tei

1

I

31,120.08

18,160.90

w

2,768.07
382.07
14.00

207,722.71

346.28

106.43

47.80

56.60

19.30

2.00

115.39

85.79

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.




176,601.63

5.00

17,958.94

1

14,637.45

308.40

14,686.33

223.75

90.00

2,040.46
93.25
646.02

14,885.79

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

Earnings

$76,495 $44,836 $50,489 $62,715

$61,707 $1,155,633

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

233,652 253,409
2,338

314,850

124,568 331,108 131,736 111,738

$239,558

Total.

24,069

314,850

Total earnings
125,566 332,218 1133,276 113,148
9,98 1,110
Deduct commission paid.
1,540
1,410

St.
Minne- Kansas Dallas. San FranLouis. apolis. City.
cisco.

233,652 251,071

13,122
635
289

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'
Federal Reserve Bank. Advisory conferences. Reserve
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'
Federal Reserve Bank. Advisory conferences. Reserve
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.
PhilaNew
Boston. York. delphia. Cleveland.
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

St.
Minne- Kansas
Louis. apolis. City.

Dallas. San Francisco.

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

23,307

10,603

69,346

9,880

5,000

55,774

23,568

23,597

39,948

23,568

184

Organization expenses Jan. 1/1916 34,603 122,335 31,517
1

Richmond.

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- PhilaBoston. York. delphia. Cleveland.

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

Dallas. San Francisco.

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
PhilaBoston. York. delphia. Cleveland.
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

Dallas. San Francisco.

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 PhilaBoston. York. delphia. Cleveland.
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.

Dallas. San Francisco.

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
PhilaBoston. York. delphia. Cleveland.

Richmond*

Atlanta.

Chicago.

St.
Minne- Kansas
Louis. apolis. City.

Dallas. San Francisco.

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

9,014

12,600

9,014

92,014 125,953

119,028

8,098
69,346

14,398

24,556

5,329

2,349

12,600

1,752
13,654 113,800

Total

12,784

20,501

2,317
26,873

8,539

12,120

18,701 13,805

3,210

16,747

23,479

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

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*

25,579

24,720

33,626

109,163
119,028

40,899

1




52,358

67,863

380,157

874,66@
"~ii,*459 j- 516,116

illl

55,774

I 516, H i

18,920

5,000

151,940

. <..

Organization expenses to
30,265
Dec. 31,1915

€...
11,459

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 o—
f

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 o—
f
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
. . . . . . . .........

$12,450 $7,000

$110

"ii*5o6"
1,700

3,230

Total

$87,000

12,450

87,000

7,000

1270

3,200

270

i $9,770 11,110 16,270
9,770

1,110

$12,030

$2,000

12,030

6,380

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 1,650
$270
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.

Deposited.

Kansas'City
Dallas
San Francisco...

70,360,000

2,600,000

$845,000

50,000
150,000
2,000,000

Total

Debit.

$10,000,000

$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

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




154 000
10,000,000

Gold.
Withdrawn.

999,000

999,000

Credit.

*$8,*666,'666"

$1,500,000
4,000,000

350,000
1,100,000
8,000,000

7,000,000

7,000,000

Debit.

9,000,000

50,000
$50,000

32,000

32 000
500,000
9,600,000

Gold.

4,860,000

77,760,000

Total
credits.

Jan. 6,1916,,
balance in
fund after
Net credits. clearing.

504,000
2,000,000

5,297,000 46,957,000

582,000

582,000

Debit.

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.

$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

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*

Total
debits.

$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

Gold.

80,750,000

9,818,000 52,873,000

*$i*666,"666"

16*666"

Withdrawn.

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.

50,000

5,010,000

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.

Deposited.

*$5*666,"666*

Total
debits.

Net debits.

Dec. 30,
1915, balance in
Net credits. fund after
clearing.

$9,051,000
$845,000

154,000

60,000
440,000
1,060,000

T o t a l . . . . . . . . . . 88,430,000

Credit.

$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.

Balance.

800,666

$500,000

1,420,000 57,680,000

Deposited.

500,000

$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
paper over To 60 days, Over 60 to
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
lied,
p p , the maximum limit has been granted,
g ,
hh b
i d d t b 99
t f
which has been considered to be 99 per cent of
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 the year against item
Federal
by
"Expense;—Organization7' on Form 34. At- Cost of (includingReserve notes unissuedetc.).
bank
expressage, insurance,
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
furniture and equipment" should agree with totals
is to stow amounts written off in accordance of " Cost of items on Form 34, as at close of business on the lastfor corresponding
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
past calendar year by the 12 banks was 60-day paper, while Dallas leads in the amount
$161,353,000, of which about two-thirds was of 6-month paper handled during the month.
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
over 10 per cent by the four eastern banks, December was 725, compared with 837 in November, 796 in October, and 762 in September,
and 4.6 per cent by San Francisco.
The total number of bills discounted during and constituted about 9.5 per cent of the
the month was 8,095, compared with 9,652 in entire number of member banks shown at the
November and 9,285 in October. The average end of the year. About one-half of the redissize of the paper discounted in December by counting banks were southern banks. The
all the banks was slightly less than $1,904, as largest absolute and relative number of banks
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.]
To $100. Over $100 Over $250
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

9

44.6

23.2

New York

132
483

1
11

1.1

Total

615

12

24
70
534

Paper
maturing
after 60
days but
within
90 days.

Paper
maturing
after 90
days.

17.0

433

Districts and States.

District No. 1—Boston:
Connecticut.....
Maine.
Massachusetts
New Hampshire.
Rhode Island
Vermont

,

Total

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




. ...

.
... :

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

13

13.6

51.6

26.4

19.0

7.0

117.6

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

11

1.6

25.3

40.3

53.3

9.6

130.1

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

112

23.6

535.1

1,503.3

1,531.5

81.9

3,675.5

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

131

5.2

287.8

1,367.0

1,510.3

376.7

3,547.0

317
197
348
77
51

.

5.0
16.6

387.0

Total

184.2

95
55
117
5
18
97

Total
District No. 5—Richmond:
District of Columbia
Maryland.. .
North Carolina
South Carolina....
Virginia
West Virginia

75.1

508

Total
District No. 4—Cleveland:
Kentucky
Ohio
Pennsylvania
West Virginia..

41.3

14
98
81
74
137
104

-

37.0
23.5
85.0
3.3

762

District No. 3—Phildelphia:
Delaware.
New Jersey
Pennsylvania

20.0
13 3
39.5
2.3

72
375
301
14

District No. 2—New York:

District No. 7—Chicago:
Illinois
Indiana
Iowa
Michigan
Wisconsin

13.8

628

Total

District No. 6—Atlanta:
Alabama
Florida
Georgia
Louisiana
Mississippi
Tennessee

3.2
60
11.0

Total commercial
paper discounted.

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.]

Number
of member
banks.

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

Districts and States.

Number
of banks
accommodated.

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

Paper
maturing
after 30
days but
within
60 days.

Paper
maturing
after 60
days but
within
90 days.

Paper
maturing
after 90
days.

Total commercial
paper discounted.

4 9
193.0
189.1
17.2

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

21

1
7
266
58
10
86
23
78

Total

Paper
maturing
after 10
days but
within
30 days.

16
2

529

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.




Paper
maturing
within
10 days.

7,646
7,649
7,630
7,610
7,606
7,607
7,605
7,611
7,614
7,617
7,610

Paper
maturing
after
90 days.

Total
commercial
paper.

Per cent.

5.0

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

44.6
1.1
13.6
1.6
23.6
5.2
121.5
6.6
29.1
45.0

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.
23.2
21.6
51.6
25.3
535.2
287.8
808.7
122.2
17.0
413.8
210.5
11.9

9
12
13
11
112
131
83
45
81
83
118
27
725
9.5

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

Number
of banks
accommodated.

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 o—
f
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.

Richmond.

Cotton
Rice
.
Cottonseed cake
Cottonseed
Sugar
Yarn
Peaches (evaporated)....
Wheat
Seed.
Corn .
Oats
Grain
Timber
Pig iron
Apples
Peanuts
Hay
Miscellaneous




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.

Dallas.

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

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..

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

Total
Per cent

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

.

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
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

84
10
107
145
70

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
-.

447
73
292
220
493

851
1,338
1,424
1 608
1,812
-

482
748
1 036
1,011
1,016

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. Fran- system.
cisco.

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 PhilaBoston. York. delphia. Cleveland.

470
27

739
507

497

1,246

410
285
695

Richmond.

Atlanta.

Chicago.

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

Total.

7

103

42
3

69

61

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

101

141
15

7

101

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.

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

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

14,097
16,673
16,591
17,463

Cleve- Richland. mond.

307
307
318
305

9,559
9,600
9,683
9,610

55
172
162
55

St.
Chicago. Louis. Minne- Kansas Dallas.
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

Total
for
system.

4,205
4,096
4,625
5,044

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

13,525
12,888
14,283
14,132

m
358,488
367,306
361,983
355,920

854

Items in transit, i. e. total amounts due from, less total amounts due to, other Federal Reserve Banks.

32,368
30,531
29,498
27,958

652

933

450
406
401
416

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.
Chicago. Louis. Minne- Kansas Dallas. Franapolis. 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

23
24
29
"33
29,454
30,095
32,448
32,427

13,486
12,982
11,943
11,571

31,149
31,130
31,883
31,889

24,499
25,596
25,148
25,346

101

101
101
105
104
19,217
19,371
19,405
18,786

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.
Chicago. Louis. Minne- Kansas Dallas. Franapolis. 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




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

80
80
120
120

17,000
17,000
17,000
17,000

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

19,000
19,000
19,000
19,000

120
120
120
120

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

9,600
9,600
9,600
9,600

11,000
13,000
13,000
13,000

Total
for
system.

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-

Philadelphia.

640
640
640
640

New
York.

500
500
500
500

9,550 13,700
9,150 13,700
9,310 13,700
8 860 13 700

6,080
5 880
5 720
5,370

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

18,950
18,350
18,130
17,990

6,096
5,976
5 778
5,466

4,751
4,150
3 930
3,790

4,000
4,000
4,000
4 000

4,750
4 150
3,930
3,790

15,630
15,030
15,030
14,230

5,000
5,000
5,000
5 000

4,380
4,380
4,380
4,380

8,950
8,950
8,950
8,950

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

4,260
4,260
4,260
4 260

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

79
81

5

160

187

=

32
11

6

43

5 ....

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
21,743
United States coin.
3
85,968 4 156,187
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

2

Total

19

149

60

29
495
1
923

64

72

6—

55

9

Week ending Jan. 21,1916. .
Ore and base bullionUnited States mint or assay
office bars
Bullion, refined
United States coin
Foreign coin

ft
29
43

20

6

—

60

30

18
3

911
3,674
4,615

30

5

30 23 . . .

3

59

147

132

92

59

3

1 -20 . . .

6 ....

3

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

5
1
79

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

45

1
1

21

1,723
40
1,763

2

21

100

100

5

15

15
2

2,094

52
1
115
1,762
2,134

60

22

2,095

4,064

358

0

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

6

18,733

10

8

43

300

25

32

10

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
853

638

250
142
1,349

1,103

142
496

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

1,257

8

9
5

101
61
162

1

9
767
102
617
458

1

1,953

258
14

511

===
15

15
1
500
500

15

1

1,000

15

1

3

2

101

750

24
5

509

15

1,190
1,196

15

8

62

2,895

15

8

163

3

2,364

105
2,027
2,307

750
1,111
29

1,786

24
1,017
3

2

Total

2

503

1

3
1,268
500

750

2

United States coin
Foreign coin




253

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.
Page.

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.

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


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102