Full text of Federal Reserve Bulletin : February 1918
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FEDERAL RESERVE
BULLETIN
ISSUED BY THE
FEDERAL RESERVE BOARD
AT WASHINGTON
FEBRUAEY, 1918
WASHINGTON
GOVERNMENT FEINTING OFFICE
1918
FEDERAL RESERVE BOARD,
EX OFFICIO MEMBERS.
WILLIAM G. MCADOO,
Secretary of the Treasury,
Chairman.
W. P. G. HARDING, Governor.
PAUL M. WARBURG, Vice Governor.
FREDERIC A. DELANO.
ADOLPH C. MILLER.
CHARLES S. HAMLIN.
JOHN SKELTON WILLIAMS,
Comptroller of the Currmcy.
H. PARKER WILLIS, Secretary.
SHERMAN ALLEN, Assistant Secretary and Fiscal
Agent.
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. !n 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 officers and directors may have it sent
to not less than ten names at a subscription price of $1 per annum.
No complete sets of the Bulletin for 1915 are available.
Bound copies of the Bulletin for 1916 may be had at $5 per copy.
SECOND EDITION OF THE INDEX DIGEST.
The Federal Reserve Board has had prepared a second
edition of the Index Digest of the Federal Reserve Act, by
Hon. Charles S. Hamlin, member of the Federal Reserve
Board, the first edition of which was published in 1915.
While the edition is primarily for the use of the Board, enough
copies will be printed to supply the demand of banks and
others who may desire to purchase them. Those who desire
copses (bound in paper) should at once remit $1 or (bound
in cloth) $1.25 to the Federal Reserve Bank of the district
in which the subscriber is resident Copies of the edition,
when published, will be transmitted to the respective Federal
Reserve Banks for distribution.
TABLE OF CONTENTS.
Page.
Review of the month
Exchange agreement with Argentina
*
Capital Issues Committee of the Federal Reserve Board
Annual Report of the Federal Reserve Board transmitted to Congress
Banks granted authority to accept up to 100 per cent of capital and surplus
Fiduciary powers granted to national banks
Executive order relating to foreign exchange
Press statements issued by the War Trade Board
Treasury circular on sale of war savings certificates and stamps
New national bank charters and capital increases during the year
Commercial failures during the year
Growth of resources of national banks
New national bank charters issued during the month
State banks and trust companies admitted to the system up to Jan. 31, 1918.
Text of bill creating a War Finance Corporation
..
Earnings and expenses of the Federal Reserve Banks
Gold settlement fund transactions
Operation of the Federal Reserve interdistrict collection system
Informal rulings of the Federal Reserve Board
Law department.
Business conditions throughout the Federal Reserve districts
Ratio of total reserves to aggregate net deposit and Federal Reserve note liabilities
Chart showing
Federal Reserve notes and gold cover held by Federal Reserve agents
Chart showing.. - —
Discount operations of the Federal Reserve Banks
Acceptances
Resources and liabilities of the Federal Reserve Banks
Federal Reserve note account of Federal Reserve Banks and agents
Interdistrict movement of Federal Reserve notes
Member bank condition statement
Earnings on investments of Federal Reserve Banks
Gold imports and exports
Discount rates in effect
IV
*..
.,
,
„
69
76
77
79
80
80
81
87
87
89
89
90
92
92
95
99
105
107
108
110
112
130
131
132
133
134
138
142
145
147
148
151
152
152
FEDERAL RESERVE BULLETIN
VOL.
4
FEBRUARY 1, 1918.
REVIEW OF THE MONTH,
The first month of the year 1918 finds the
Condition of Federal Reserve system in a
Federal Reserve condition of increasing strength
system.
The total
a n d res p O nsibility,
gold on hand on Jan. 18 was $1,784,307,000,
the largest accumulation of the metal ever in
the possession of the Federal Reserve Banks.
The reserve percentage held against notes and
deposits is approximately 65 per cent, while
the membership of State institutions has increased during the month by 46, bringing
the total State membership to 296 with combined resources of $5,036,051,076. The final
figures for gross earnings for the calendar year
1917, elsewhere presented in detail in this issue,
are $15,838,859, and net earnings. $11,202,993.
The operations of the gold settlement fund for
1917 amount to $26,962,946,500, as against
$5,757,836,000 during the preceding year.
Items cleared during the month ending January
15 of the present year number 359,067, as
compared with 241,933 cleared during the corresponding period in 1917. There has thus
been during the past 12 months a very great
increase both in the scope of the banks' operations, in their holdings of gold, in their membership, in their total resources, and in their
capacity to meet such demands as may be
brought to bear upon them. As a result of
the sale of the second Liberty loan, there has
been a considerable increase in commitments
of Federal Reserve Banks upon paper secured
by Government obligations, and the paper discounted by them is still In process of liquidation, only three months having elapsed since
the completion of subscriptions to the loan.
The final instaliixientlupon the second Liberty
loan was paid on January 15, and a reasonable
No. 2
period must be allowed for the adjustment of
transactions growing out of it. On January
25 the total amount of paper collaterally by
Government obligations held by all Federal Reserve Banks had been reduced to $312,520,000.
While this sum is larger than the amount held
at the corresponding date subsequent to the
first Liberty loan, the sum thus remaining
unliquidated is relatively moderate, considering the scope of the Government loans placed
during the year.
The annual report of the Federal Reserve
Board was sent to Congress on
T h e Board's January 22.
There is pubaim&al report.
lished elsewhere in this issue a
general synopsis or digest of the salient features of the report. The following summary?
with reference to the outcome of the operation
of the system during the year 1917, is presented in the report itself and affords a sketch
of the general situation as affected by Government financing:
Taking the year as a whole, it 'will "be noted
that, although there has been a great increase
in the total assets of the system, there has been
a reduction of gold and lawful money reserves
from 81.4 per cent at the beginning, to 63.6
per cent at the end of the year, but it should
not be overlooked, that the figures for December 28, 1917, represent the condition existing
at a time when the process of distributing the
second Liberty loan was still uncompleted.
The question whether the final absorption by
the ultimate investor of the second Liberty
loan and the resulting financial adjustments
would bring about as favorable a situation as
that which existed at the closing of the first
loan,, is still an open one, but indications axe
that there will be a larger amount of bonds
left in the hands of the banks and that a correspondingly greater volume of discounts secured by Government obligations may remain
70
FEDEEAL RESERVE BULLETIN.
with the Federal Reserve Banks than was the
case at the close of the first Liberty loan. The
existing condition is susceptible of improvement and will be improved as the public performs its duty of absorbing the Government
loans out of savings. The position of the banks
with respect to credit expansion is indicated by
the condensed statement of the deposits, loans,
discounts, and investments of the national
banks as reported to the Comptroller of the
Currency on November 20, 1917, as compared
with corresponding figures on December 31,
1914, November 10, 1915, and November 17,
1916.
[In thousands of dollars; 000 omitted.]
Deposits, net, on which
reserve is computed
Loans and discounts, including overdrafts
United States bonds
Other stocks,
bonds, and
securities 1
Dec. 31,
1914.
Nov. 10,
1915.
Nov. 17,
1916.
Nov. 20,
1917.
10,348,806
6,668,325
8,256,662
9,976,980
6,363,435
791,995
7,241,140
777,765
8,355,101 9,550,571
724,473 2 2,354,183
1,313,778
1,343,822
1,747,794
1,949,619
1
8
Exclusive of Federal Reserve Bank stock.
Includes United States certificates of indebtedness and payments on
account of subscriptions for Liberty loan bonds.
It is proper to point out that while, during
the year 1917, there has been a lessening of the
fluidity and immediate availability of the country's banking resources, the change is not surprising when there is considered the extent of
the requirements which have been made upon
our banking system. It is evident also, from
an analysis of the figures, that the decrease in
reserve strength is attributable only in a minor
degree to normal commercial discounts and
that it is mainly the result of Government financing and the consequent demands upon our
resources.
Comparative figures of chief assets and
liabilities of member banks in
p r i n c i P a l o i t i e s u n d e r d a t e Gf
December 7, 1917, and January 18, 1918, throw some light on the part
played by the banks of the country in the financial operations of the Government. Figures
for the two dates are not exactly comparable,
the earlier figures reflecting condition of 607
banks, while those for the later date represent
totals for 662 banks, but they are sufficiently
indicative of the general trend of development
during the period following the consummation of
the second Liberty loan. The largest changes
FEBRUARY 1,1918.
are shown under the head of United States securities owned, net demand deposits, and Government deposits. The first item shows a decrease from 1,763.1 to 935.8 millions. In this
total of 935.8 millions on the date named there
were included about 275 millions of the 700
millions of United States bonds deposited with
the United States Treasurer to secure circulation, besides relatively small amounts of other
Government securities issued before the war.
Loans secured by Government obligations
show a slight increase during the period from
373.5 to 381.3 millions, while other loans and
investments (exclusive of permanent investments) increased from 9,470.1 to 9,897.2 millions. Aggregate loans and investments of reporting banks show a decrease from 11,606.8
to 11,214.3 millions. The decrease would, of
course, have been larger had the number of
reporting banks remained constant.
Reserves of these banks (all held with their
Federal Reserve Banks) show an increase for
the period from 1,137.8 to 1,147.3 millions,
while cash in vault went up from 388.2 to 394.9
millions, the increases under these two heads
to a large extent representing amounts credited to newly reporting banks.
Net demand deposits increased from 8,391 to
8,901.9 millions, and time deposits from
1,259.9 to 1,361.8 millions. The ratio of combined vault cash and reserve to combined net
demand and time deposits shows a decline
from 15.8 to 15.0 per cent. For the banks in
the three central reserve cities this ratio declined from 17.2 to 16.5 per cent. Different
results are obtained if in figuring reserve percentages account is taken of Government deposits, against which no reserve need be car*ried by member banks. These deposits show
a decline from 1,475.6 to 354.7 millions, while
for all three classes of deposits combined the
apparent decline is from 11,126.5 to 10,618.5
millions. On the basis of these figures the
ratio of combined cash and reserve to deposits
of all reporting banks shows an increase between the two dates from 13.7 to 14.5 per
cent. For the banks in the three central
reserve cities this ratio increased from 14.3 to
16.0 per cent.
FEBRUARY 1,1918.
It is noteworthy that aggregate loans and
investments on both dates were in excess of
total deposits, the ratio of total investments
to total deposits of all reporting banks showing an increase from 105 to 106.2 per cent. For
the banks in the central reserve cities this
ratio shows a decline from 102 to 100.2 per cent.
Between December 21, 1917, and January
253 1918, the Federal Keserve
Operations of B a n k s ii qu idated nearly 70
Federal Reserve
.1V
-,-, .-,-, v
, -. -,
« ,
millions of bills discounted and
Banks.
.
.
bought, and increased their
holdings of United States securities by about
14.6 millions. Bills discounted on hand show
a decrease of 65.8 millions, while discounts
secured by war obligations (including both
customers' paper and member banks' collateral
notes) increased from 298.2 to 312.5 millions,
or from 43 to slightly below 50 per cent of the
total discounts held. Other discounted paper
on hand decreased by over 80 millions from
295.2 to 315.1 millions and constitutes at present but slightly over one-half of the total discounts by the banks. A decrease of 4 millions
is indicated in the total holdings of paper
bought in the open market, all the banks except at New York and Boston reporting net
liquidation of this class of paper. New York
increased its holdings of bought paper from
138.7 to 168.3 millions, or from about 50 to
over 60 per cent of the total reported on the
two dates.
Investments in Government short-term securities, chiefly certificates of indebtedness, increased from 58.1 to 72.7 millions, the New
York bank alone reporting an increase of 10.6
millions in the temporary investments of this
class of securities. United States long-term
securities held by the banks show practically
no change. Other earning assets include, besides warrants on both dates, also $2,765,000 of
bill of lading drafts on the later date.
During the period under review net deposits
of the Federal Reserve Banks increased from
1,466.3 to 1,492.9 millions, gold reserves from
1,645.5 to 1,726.5 millions, and Federal Keserve
notes in circulation from 1,227.6 to 1,234.9
71
FEDERAL RESERVE BULLETIN".
millions. The ratio of total earning assets to
net. deposits, which on the earlier date stood
at 73.7 per cent, declined to about 69 per
cent, while the ratio of total reserve to
combined net deposit and Federal Reserve
note liabilities went up from 62.9 to 65.4 per
. cent.
In the following table are shown the changes
between December 21, 1917, and January 25,
1918, in the totals of discounted and purchased
bills held by each of the Federal Reserve
Banks, also changes in the aggregate holdings
of other classes of earning assets:
[In thousands of dollars, i. e., 000 omitted.]
Federal Reserve Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Dec. 21,
1917.
Jan. 25,
1918.
70,158
397,450
65,331
77,921
44,644
23,765
116,194
47,897
23 050
35,356
25,157
44,529
62,151
390,898
47,989
62,338
45,657
18,172
119,445
35,896
15,366
32,580
22,762
48,320
Total bills
901,574
971,452
Total United States securities. 108,568 123,194
1,102
Other earning assets
4,902
Total investments held. 1,081,122 1,029,670
Net
Net
increase. decrease.
8,007
6,552
17,342
15,583
1,013
5,593
3,251
12,001
7,684
2,776
2/395
3,791
69,878
14,626
3,800
51,452
On January 17 the Secretary of the Treasury
announced that he had offered
A new issue of f o r subscription at par and ac.certificates.
r
j
-«,-,'
^
,
crued interest through the J ederal Reserve Banks, $400,000,000 of Treasury
certificates of indebtedness, payable on April
22, 1918, with interest at 4 per cent per annum
from January 22, 1918. Subscriptions were
received at Federal Reserve Banks up to the
close of business on Tuesday, January 29, 1918.
This offering was oversubscribed, allotments
in full being made in the order in which subscriptions were received in the several districts.
The certificates when issued will be in denominations of $1,000, $5,000, $10,000, and
$100,000, and, as in former offerings, it is announced that the certificates will be exempt
both as to principal and interest from all taxation now or later to be imposed by the United
72
FEDEEAL RESERVE BULLETIN.
States, or by any local taxing authorities except
estate and inheritance taxes, graduated income
taxes, and excess profits and war profits taxes
now imposed or to be imposed upon the incomes
or profits of individuals and corporations. The
graduated income taxes and excess profits taxes
do not, however, apply to bonds and certificates whose principal does not exceed $5,000.
Provisions with respect to redemption at par
and accrued interest at specified dates before
maturity are made applicable to this issue as
well. The new issue is the thirteenth successive offering of certificates that has occurred
since the entry of the United States into the
war, and is the first step anticipatory of a third
general loan. Of the first eleven issues of certificates, five were funded into the first Liberty
loan- and six into the second, while the twelfth
issue was marketed for the purpose of anticipating the proceeds of taxes due in June, 1918,
under the excess profits and income provisions
of the new legislation of 1917. The thirteenth
issue is thus the first of those to be floated in
anticipation of the third Liberty loan.
The Board has taken measures to call to the
attention of the several FedDistribntloii of e r a i Reserve Banks the imcertifecates.
„
.
.,
.,
portance ot securing a wide and
uniform distribution of these certificates of indebtedness which will be issued pending receipts froin the next bond issue. In a communication to the several banks it has estimated that the amount to be raised will
probably average about $300,000,000 per week,
arid it decided to secure as widespread an
absorption of these certificates as possible in
order that no-particular group of banks may
be called upon to absorb more than its due
share, thereby compelling itself to curtail
necessary credits in order to carry these securities. With a view to preventing the development of such a situation, it has been suggested
that Federal Reserve Banks effect an organization which will enable them to carry on an
effective campaign for the wide distribution of
the certificates in districts. The Federal Reserve Banks have been advised to inaugurate
a campaign of education with the view of hav-
FEBRUARY 1,1918.
ing members understand the necessity of curtailing nonessential credits, or sorting out and
sending in gold certificates and gold coin, of
securing more State banks as members, and of
absorbing their proper proportion of these
short-term Treasury certificates. In a communication to the several banks, the Board
under date of January 14, says:
"A special department of your bank might
be organized for this work under the immediate
supervision of some prominent banker in your
district, of vision and influence, and, after your
organization has been effected, representative
bankers from various parts of your district
might be asked to visit you with the view of
acquainting themselves with the requirements
of the situation, and of devising the best means
of meeting them. A definite proportion of certificates might be allotted to each of your banks,
and committees formed in each group of the
various State banking associations whose duty
it would be to correspond with and to visit all
banks in the group, and to urge upon them the
importance of cooperation. It should be
pointed out to your member and nonmember
banks that by investing in these Treasury certificates of indebtedness, and in placing them
with their depositors, they would best insure
themselves against undue strain in arranging
for payments for subscriptions to the next
Liberty loan issue. The ensuing bond campaign is going to be a most vigorous one, and
special attention will foe paid to the countrydistricts. By arousing interest in the sale of
Treasury certificates, you will not only render
most effective service to the Government in
providing for its financial necessities, but you
'will do a great deal toward preventing expansion of unnecessary credits> and will avoid a
strain upon your member banks and upon your
own bank which, if not anticipated in this way,
might be very embarrassing.77
The distribution of capital and credit between
enterprises in accordance with
Priorities in cap-,i
.,-„.
i i a i ISSIS6S-
•
* ,.
.
,
£
tneir relative importance irom
_
x
the standpoint of the winning of
the YVSLT has had the careful attention of the Fed«
eral Reserve Board for some time past. In its
annual report the Board said: "There must be
a conservation of credit as well as of goods, and
credit, generally speaking, should not be used
except where it is required for the common
welfare, as in planting crops, the manufacture
73
FEDEKAL RESERVE BULLETIN.
FEBRUARY 1,1918.
of necessary articles, or in such construction
work as may be essential in bringing about
increased production. Limitation in ordinary
lines of credit is necessary to make room fcir
the credits required by the Government for tile
purchase of supplies essential for war purposes. It must be expected that the w&r
activities of the Government will bring about
a further expansion of deposits and loans ijn
banks, and in order to keep our credit structure
strong it is necessary that the banks should
exert their influence and lend their energies tjo
a more general absorption of Government
loans by savings and to limitation of private
credits wherever practicable without causing
hardship. We must look to the future aijd
prepare unceasingly for further demands which
may be made upon us."
I
In applying the idea of conservation of capital and credit the Federal Reserve Board, at
the request of the Secretary of the Treasury,
has undertaken the duty of passing upon such
plans or proposals for issues of capital designed
to finance new enterprises or to refinance or
extend old ones as may be submitted to it.
Elsewhere in this issue (p. 77) will be found I a
full statement concerning this work.
\
taking covered by any proposed issue is necessary for the public use and welfare, or contributes toward winning the war. The question at issue is not, the Secretary points out,
one merely of capital, but also one of material
and labor. "Public improvements or private
enterprises which in times of peace might be
entirely proper/' he says7 " should now be considered in the light of, or in connection with,
the great governmental problems arising out
of our military necessities/'
lii order to carry out the functions thus undertaken by the Federal Reserve
Capital Issues
Committee.
B o a r d
there
h a g b e e n
n a m e d
an advisory committee whose
personnel and purposes were announced in a
statement issued to the public on January
27. A special committee of the Board, consisting of Messrs. Warburg, Delano, and
Hamlin, is assigned to the supervision of new
capital issues, while in addition to these three
members the proposed advisory committee is
to consist of Mr. Allen B. Forbes, senior partner of the firm of Harris, Forbes & Co., New
York City; Mr. F. H. Goff, president of the
Cleveland Trust Co., Cleveland, Ohio; and Mr.
Henry C. Flower, president of the Fidelity
While no specific authority has been confer- Trust Co., Kansas City, Mo. Mr. Forbes will
red upon any administrative agency to approf e act as chairman of the advisory committee.
or disapprove new undertakings, a number pi The counsel of the committee will be Mr. B. W.
corporations, executives, bankers, and munici- Palmer, of the firm of Storey, Thorndike,
pal officials have already submitted plans for Palmer & Dodge, Boston. The Capital Issues
new enterprises or new issues; and it is now ap- Committee will organize at each of the twelve
parent that the Government may count upon Federal Reserve Banks local committees for
a full measure of cooperation on the part ;of the purpose of furnishing to the committee
States, municipalities, and private corpora- such additional information and recommendations, with the result that a large number jof tions as the Board may require in dealing with
such plans for future development will be sufo- cases originating in the respective districts.
mittedfrom time to time. The Secretary of the These local committees will consist in e'Bch case
Treasury strongly urges upon the corporations of the chairman of the board of directors and
and bankers of the country that before makiiig the governor of the respective Federal Reserve
Banks and three additional members particucontracts requiring the use of labor and matelarly equipped by banking or business experirial, and before placing new issues of securities
ence to serve with these ex officio officers of
or agreeing to purchase such new issues, tiHey the bank; in addition the Board .will approve a
confer with the Federal Reserve Board in orcjer list of names of qualified persons in those
that it may determine whether the undpr- localities, who may be called in as sub-
37528—18
2
74
FEDBEAL BESERVE BULLETIN.
FEBRUARY 1,1918.
stitutes or additional advisers for such local enterprises necessary to the war in cases where
committees whenever required. The com- they can not obtain such aid through regular
mittee does not expect to deal with cases banking channels, as well as in exceptional
touching railroad financing, but it will give cases directly to persons, firms, corporations,
advice with respect to the sale of securities or associations, whose operations shall be necesinvolving municipal, public utility, and indus- sary or contributory to the prosecution of the
trial financing. The committee will act in a war. The Secretary proposes that the corpomanner similar to that of the Capital Issues ration in question be permitted to have outCommittee in London, which exercises its in- standing at any one time its own notes or oblifluence, relying upon voluntary cooperation gations in an amount aggregating not more
on the part of banks, bankers, and business than eight times its paid-in capital, such notes
men of the country. For the time being the or obligations to mature in not less than one or
committee does not contemplate passing upon more than five years from the dates of issue.
individual issues of securities aggregating less
In a statement regarding the proposed corthan $500,000, in the case of industrial and poration, issued to the press on February 1,
public utility corporations, and $250,000 in the the Secretary of the Treasury says:
case of municipalities; nor upon securities hav"As a corollary to the provision for the
ing a maturity of less than one year. The extension
of credits, the bill provides for apwork thus undertaken is in line with the plan proval by the corporation, through a system
which has already been announced in the of licenses, of issues of securities with a view
Board's annual report as well as in its New to preventing the use of capital in unnecessary
Year's announcement respecting the necessity expenditures during the period of the war.
This is of great importance to the country in
of saving bank credit as well as goods. Many order to conserve the supply of new capital
indications of a disposition to cooperate have and make it available for Government loans
already been received, various important and essential war purposes. The Secretary of
municipalities submitting their plans for pro- the Treasury has already asked for the volunposed financing in order to obtain the advice tary submission to the Federal Reserve Board
of any projected capital issue and has asked
of the new organization. A considerable the Federal Reserve Board to pass upon such
number of private enterprises have done like- issues. The Federal Reserve Board is already
wise, and the Board asks for the aid and sup- performing this patriotic service, and in doing
port of all those bankers, trust companies, and that has secured the cooperation of prominent
other concerns which are from time to time bankers acting in an advisory capacity. The
work which the Board has taken on this line
interested in the issue of securities, as well as should be regarded as preliminary to and
that of the business community, at whose in- laying the basis and furnishing in no small
stance, or in whose behalf such issues are part the organization for the work which the
corporation will have to do."
placed on the market.
Further details of the plan are presented in
Carrying still further the idea of a plan to
full
on p. 95 of this issue.
sustain the credit of those inWar Finance d us tries which are performing
For the five weeks ending January 18 the net
r
&
Corporation.
.
outward gold movement tof
taled about
Junctions essential or desirable
«,932,000, comin connection with the conduct of the war, the
pared with $3,426,000 for the
Secretary of the Treasury announced on Janu- preceding four weeks. Gold imports for the
ary 29 a draft of a measure to create a "War five weeks totaling $3,506,000 came largely
Finance Corporation." The function of the from Canada, Mexico, and South American
corporation would be to make advances to ap- countries, while gold exports totaling about
plicants, including commercial banks, savings $5,438,000 were consigned chiefly to Mexico,
banks, and other bankers or trust companies, Canada, and Chile.
which shall have advanced funds to industrial
FEBRUARY 1,1918.
FEDEEAL RESERVE BULLETIN.
75
is in about the same position as a year ago,
while in four there has been some falling off.
It is proper to point out, however, that these
percentages are somewhat misleading in certain
cases. For example, there is no gain in the
Boston district because all the banks in that
district, both member and nonxnernber, have
[In thousands of dollars; i. e., 000 omitted.]
from the outset remitted at par. It may be
Excess of
that in some other cases also, where the gain
Imports. Exports. imports
over
exports. has been small, it is because the number of
banks reporting a year ago represented a larger
181,719 proportion of all the banks in the district than
104,972
23,253
Aug. 1 to Dec. 31,1914.
420,529
31,426
451,955
Tan. 1 to Dec. 31,1915..
529,952 in other districts which apparently make a
155,793
685,745
Jan. I t o Dec. 31,1916..
181,542
372,171
553,713
Jan. I t o Dec. 31,1917..
1,777
481 better showing.
2,258
Jan. 1 to Jan. 18,1918..
Total
1,716,924
666,139 1,050,785
Where good progress has been made, it has
been almost invariably due to energetic solicii Excess of exports over imports.
tation by one or more members of the staff of
The gold embargo has continued throughout the bank who have devoted their attention to
the month upon practically the same basis as the matter and have done actual work for the
heretofore, the most important development purpose of adding to their par list.
being the conclusion of an agreement with the
Government of Argentina whereby funds up Clearing membership in Federal Reserve systemfor the year 1917.
to $40,0GG,QQ0maybe deposited with the Federal
Member banks.
Reserve Bank of New York as a basis for the
furnishing of exchange upon Argentina. This
DistrictMonth endingIncrease
arrangement contemplates the exportation
Per cent.
or
decrease.
Jan. 15. Dec. 15.
of gold to that country, should such shipment
be desired, immediately after the close of the
402
13
10.75
399
war. Arrangements have also been completed Boston.
4.49
623
651
New York
128
1
632
628
4
.63
Philadelphia for the establishment of an additional Indian Cleveland
752
763
11
1.46
521
8
1.53
529
Richmond...
credit of 10,000,000 rupees, which sum has Atlanta.. .
2
. .
391
. 51
389
1,044
1,084
3.84
40
been distributed to importers in proportion to Chicago
468
2.35
479
11
St. Louis...
707
9.33
773
66
their needs through the Federal Reserve Bank of Minneapolis
943
16
1.70
959
Kansas City
Dallas
619
14
633
2.26
New York. Other negotiations for the work- San Francisco
522
12
534
2.30
ing out of exchange arrangements with the
7,622
Total
7,823
208
2.73
governments of various countries to which
Nonmember banks.
gold would otherwise be shipped in settlement of international balances are expected
District.
Month endingIncrease
shortly to be brought to a conclusion, and it
or
Per cent.
is believed will result in avoiding the necessity
Jan. 15. Dec. 15. decrease.
of transferring specie.
(2)
242
242
In the following table are set forth data Boston
New York
313
343
30
0.96
Philadelphia
310
33 62
232
78
492
showing the increases or de- Cleveland
565
73
14.88
286
Richmond
266
120
17.00
416
326
190
121.63
check°cfearfiig.Of creases in the number of banks Atlanta..
1,429
Chicago
2,331
63.13
902
883
12 91
997
Louis
114
on the par lists of various Fed- St.
1,100
1,033
Minneapolis.. .
167
16.09
1,408
"City
1,527
119
8.45
eral Reserve Banks for the 12 months ending Kansas
221
211
Dallas
UO
14.53
1,108
1,170
62
5.59
December 15, 1917. The tabulation shows San Francisco
Total
8,130
9,321
14.64
1,191
that six districts have made gains during the
period in question, and that of these, three have
1
Decrease.
made very substantial progress. One district
2 All banks in Boston district are in the clearing system.
Net gold imports for the calendar year 1917
totaled $181,542,000, compared with $529,952,000 for the year 1916, and $420,529,000 the
year before. The gain in the country's stock
of gold since August 1, 1914, was $1,050,785,000, as may be seen from the following exhibit:
76
FEDERAL RESERVE BULLETIN.
FEBRUARY 1,1918.
Exchange Agreement With Argentina.
By the terms of a circular given to the public
January 28, there has been put
It was announced at the Treasury on January
changed *& * **' * n t o practical operation the |
7 that Secretary McAdoo has concluded through
terms of the Executive order of
the State Department an arrangement with
November 23, 1917, in which provision was
the Argentic Government to stabilise exmade for a definite regulation of foreign exchange between the two countries and to
change transactions. The new system calls for
check the depreciation of the American dollar
the creation, under the direction of the Federal
on the Argentine market, which had threatened
Reserve Board, of a system of regular reports
to become a serious obstacle to trade between
by all persons engaged in foreign exchange
the two countries.
business of every description, and will thus
Under the arrangement, the Argentine Govenable the Board to maintain a careful overernment
revives a law which was passed, immesight or check upon practically the whole exdiately
after
the outbreak of the European
change business of the country. As heretofore
war,
under
which
American business men,
stated, provision has been made for the immeowing
money
to
Argentine
merchants, may dediate installation of this system, and an office
posit
such
amounts
with
the
Argentine ambashas been opened in New York City for the
sador,
who
in
turn
deposits
these
amounts in
purpose of facilitating the gathering of the
current
account
with
the
Federal
Reserve
Bank
regular reports which are called for by the new
of
New
York.
The
Argentine
Government
plan. Licenses will be regularly issued to
applicants under the provisions of the new order, agrees that the balance of this account will not
the text of which is published in this issue on be shipped in gold until after the ratification
pages 81-86. Hitherto there has been nothing of the treaty of peace ending the present war,
to prevent banks from making remittances ac- and the American Government agrees that no
cording to their own discretion and judgment, obstacles will at that time be interposed to the
except in cases where there was reason to sup- shipment of the said balance in gold. Paypose that the transactions proposed to them ments to the Argentine ambassador are to be
were for account or benefit, direct or indirect, on the basis of the relative gold value of the
of an enemy alien, in which event it was nec- two currencies plus a charge of 3 per cent to
essary to bring the matter before the War cover transportation, insurance, and other
Trade Board. This condition of affairs is now charges.
The arrangement with the Argentine Gov~
terminated, and the system of licensing, already
referred to, is substituted therefor. The new ernmentpermits such deposits up to $40,000,000
regulations provide that " a dealer shall require with the Argentine ambassador, but it is conevery customer purchasing foreign exchange fidently expected that if this amount proves
from him or selling foreign exchange to him, to inadequate, arrangements for increasing the
file a statement showing the purpose of such limit can be made with the Argentine Governpurchase or sale with such details as the Fed- ment.
eral Reserve Board may require, including a
Erratum.
declaration to the effect that no enemy or ally
of enemy of the United States has any interest
On page 5 of the January Bulletin, in paradirectly or indirectly in such purchase or sale. graph headed "Earnings and dividends" it is
The Federal Reserve Board shall prescribe the stated that "eight banks have paid their diviform of such declaration. Copies of such state- dends to the end of the year 1917. The four rements shall be furnished by such dealer upon maining banks have paid all dividends to June
request to the Federal Reserve Board, through 30,1917," etc. This statement should read:" Six
the several Federal Reserve Banks,"
banks have paid full dividends to the end of the
FEBRUARY 1,1918.
FEDERAL RESERVE BULLETIN.
77
year 1917, four to June 30, 1917, and the reThe committee does not expect to deal with
cases touching railroad financing, but it will
maining two banks to the end of 1916.;?
give advice with respect to the sale of securities involving municipal, public utility,
and industrial financing. The committee will
Priorities in Capital Issues.
act in a manner similar to that of the Capital
The following statement issued in the Issues Committee in London, which exercises
morning papers of January 27, 1918, gives the its influence relying upon voluntary cooperation on the part of the banks, bankers, and
details of the Board's organization for the over- business men of the country.
sight of capital issues:
For the time being the committee does "not
It was learned to-day that the Capital Issues contemplate passing upon individual issues of
Committee of the Federal Reserve Board has securities aggregating less than $500,000, in the
completed the draft of its general plans of case of industrial and public utility corporations,
and $250,000 in the case of municipalities;
organization.
In Washington, in addition to the three mem- nor upon securities having a maturity of less
bers of the Federal Reserve Board whose names than one year. This does not mean that for
have heretofore been announced, there will be smaller amounts the committee does not desire
an advisory committee consisting of Mr. the cooperation of all concerned. Indeed, it is
Allen B. Forbes, senior partner of the firm of considered imperative that a policy of avoiding
Harris, Forbes & Co., New York City; Mr. appropriations for unessential expenditures be
F. H. Goff, president of the Cleveland Trust adopted by all with the most scrupulous care.
Co., Cleveland, Ohio; and Mr. Henry C. Flower, The committee hopes in due course it will be
resident of the Fidelity Trust Co., Kansas able to devise ways and means to deal also
with transactions of smaller scope.
ity, Mo.
It is distinctly understood that the committee
Mr. Forbes will act as chairman of the advisory committee. The counsel of the com- will not pass upon the intrinsic merits of indimittee will be Mr. Bradley W. Palmer, of the vidual cases, but only upon the question of
firm of Storey, Thorndike, Palmer & Dodge, whether or not the objects for which money
Boston. Mr. Stephen L. Selden, at present is to be raised and spent are essential to and
identified with the Aircraft Board, will be the compatible with the national welfare at this
executive secretary of the committee, in which time.
It is the committee's desire that applications
capacity he will be assisted by Mr. James Q.
Newton, of Denver, Colo. All these have be addressed to it at Washington. From there,
offered their services without compensation. if necessary, they will be transmitted for further
The advisory committee will have an office local investigation to the respective districts.
There is no doubt that pending possible
with the Federal Reserve Board in the Treasury Building and the staff of the committee action by Congress the committee can count
will be located in the Metropolitan Bank upon the heartiest cooperation of all concerned.
As a matter of fact, it has already received
Building, opposite the Treasury Building.
The Capital Issues Committee will organize communications from all parts of the country
at each of the twelve Federal Reserve Banks asking for its advice.
local committees for the purpose of furnishing
With the statement in question the following
to the committee such additional information letter was given out for issue in the various
and recommendations as the Board may require
in dealing with cases originating in the respec- Federal Reserve districts:
DEAR SIR.: In order to win the war, it is
tive districts. These local committees will consist of the chairman of the board and the gov- imperative at this time that goods, credit, and
ernor of the respective Federal. Reserve Banks savings be placed at the disposal of the Governand three additional members, particularly ment in the largest possible measure. Any
equipped by banking or business experience, unnecessary production or consumption of
to serve with these ex officio officers of the goods, and any unnecessary use of credit, saps
bank; in addition the Board will approve a list and weakens the fighting strength of the nation.
There is no doubt about the willingness of
of names of experts and prominent citizens in
those localities'" who may be called in as sub- the people of the United States to meet the
stitutes or additional advisers for such local Government's requirements generously and
without reserve; but they demand, and are
committees whenever required.
P
78
FEDERAL BESERVE BULLETIN.
entitled to, guidance as to which industries
and pursuits are to be considered as necessary
for the best interest of the country, and,
therefore, are to be stimulated, and which,
on the other hand, are to be held as unnecessary and, therefore, to be discouraged under
present circumstances.
The problem affects with peculiar force our
banking operations because credit improperly
granted not only wastes to that extent funds
that should be made available to the Government, but misdirects at the same time the use
of labor and material which should be devoted
to our national purposes.
To bring about a proper control of credit is,
therefore, one of the foremost endeavors of
nations at war, and it is for this reason that
European belligerent countries have created
some central organizations whose duty it is to
state authoritatively whether or not the sale
of securities (stocks or bonds or notes) is in the
public interest, no securities being placed by
voluntary agreement or by act of lav/, except
with the approval of these bodies.
In a letter dated January 11, 1918, Secretary
McAdoo invited the Federal Reserve Board:
"as another patriotic service to assume the
responsibility of passing upon such proposals
as may be submitted to them in respect to
capital expenditures or issues of new securities.77
At the same time, the Secretary issued a
public statement, which is printed below.
The Board, acting upon this letter, passed a
resolution accepting this charge, appointing
three of its members, Messrs. Warburg, Hamlin,
and Delano, to act as a Capital Issues Committee, authorizing the committee to engage
the necessary staff and to appoint an expert
advisory committee to assist it in investigating
and passing upon all cases that would come
before it.
Messrs. Allen B. Forbes, senior partner of the
firm of Harris, Forbes & Co., New York City;
F. H. Goff, president of the Cleveland Trust
Co., Cleveland, Ohio; and Henry C. Flower,
president of the Fidelity Trust Co., Kansas
City, Mo., were then invited to become members
of the advisory committee, and in a fine spirit
of patriotism, they have agreed to serve in this
capacity. The committee will not pass upon
the intrinsic merit of securities to be offered for
sale; it will only examine into two questions:
(1) Whether the offer is timely with respect
to the financial operations to be undertaken by
the Government from time to time, and
(2) Whether the objects for which the funds
are to be raised by the offer of securities are
FEBRUARY 1,1918.
compatible with the public interest as above
described.
In developing its policies as to the various
classes of cases involved and in passing upon
them individually, the committee expects to
seek advice from the various departments and
boards at Washington and, in addition, it
expects, whenever necessary, to call upon the
chairman and governor of each Federal Reserve
Bank for a local investigation and report,
authorizing them to invite, from, a list to be
approved by the Board, not more than three
men likely to be able to give expert and judicial
advice in the case, to join with them in
particular examination and report.
The committee is mindful of the fact that, on
the part of the banks and bankers, there is no
legal obligation to submit their cases. It will
be an entirely voluntary act by them. The
committee has no doubt, however, that it may
count upon their single minded patriotic
cooperation. The committee hopes that before
offering for sale stocks, bonds or notes of
corporations in amounts of $500,000 and above,
and in the case of States, counties, and municipalities of $250,000 and above, advice will be
sought from it as to whether such sale at the
time will be held to be compatible with the
public interest. While the committee will be
glad to give advice to the best of its knowledge
and ability in all questions of credit submitted
to it, it does not in general expect to pass upon
notes having less than one year to run.
You are requested to bring this letter to the
notice of the banks and investment houses of
your district and to invite their cordial
cooperation.
Application forms are in course of preparation, and they should be addressed to Federal
Reserve Board, Capital Issues Committee,
Washington, D. C."
Very truly, yours,
PAUL M. WARBURG,
Chairman, Capital Issues Committee.
The statement issued by the Secretary of
the Treasury, referred to above, is as follows:
" I n my annual report to Congress, dated
December 3, 1917, I referred to the importance at this time of avoiding unnecessary capital expenditures in both public and private
enterprises. While no specific authority has
been conferred upon me to approve or disapprove new undertakings, a number of corporation executives, bankers, and municipal officials, inspired by the idea that they should do
FEBRUARY 1,1918.
FEDEBAL RESERVE BULLETIN.
nothing which, would in any way retard our
efforts in the prosecution of the war, have
submitted to me plans for new enterprises or
new issues of securities.
" I t is now apparent that the Government
may count upon a full measure of cooperation
on the part of the States, municipalities, and
private corporations, with the result that a
large number of such plans for future developments will be submitted from time to time.
It therefore becomes necessary that each of
these proposals receive adequate consideration and that a recommendation be made
without delay as to the course to be pursued.
"Pending action by Congress, I have requested the Federal Reserve Board to pass
upon such proposals as may be submitted to
them or referred to them by me, and advise
whether or not such expenditures of capital
or such issues of new securities should be
made. The Board has consented to undertake this responsible work, and I therefore
strongly urge upon the corporations and the
bankers of the country, that before making
contracts requiring the use of labor and material, or before placing new issues of securities or agreeing to purchase new issues of securities, they confer with the Federal Reserve
Board in order that it may determine whether
the undertaking covered by the proposals is
necessary for the public health and welfare,
or contributes directly toward winning the
war,
"This is not alone a question of capital, but
of material and labor. Public improvements
or new private enterprises which in time of
peace might be entirely proper, should now
be considered in the lignt of, or in connection
with, the great Governmental problems arising
out of our military necessities. I am confident
that I can count upon the cordial cooperation
of all concerned in this great work of conserving our capital resources, so that we may devote
them primarily to bringing victory and peace."
Annual Report of the Federal Reserve Board.
The Federal Reserve Board transmitted to
the Speaker of the House of Representatives
on January 22 its fourth annual report. As
usual this report, with exhibits and statistics
attached thereto, and including the reports of
Federal Reserve agents, will be transmitted to
every member bank. Simultaneously with the
79
transmission of the report, the following statement, intended briefly to summarize some of
the salient features of the document, was
made public:
Ji$
War's effect upon national finance and banking is reflected in the fourth annual report of
the Federal Reserve Board, transmitted to the
Speaker of the House of Representatives on
Tuesday, January 22. The Board reviews
the conditions brought about by the great
growth of foreign trade and the various measures intended to remedy resulting difficulties
or forestall dangers that have been put into
effect in consequence. Chief among the latter
are the provision of a large supply of Federal
Reserve notes,, which were provided and conveniently stored early in the year 1917, the
development of numerous expedients for the
conservation of the gold supply, and the application of the amendments of June 21, 1917,
to the Federal Reserve act, for the purpose, of
enlarging reserves and strengthening the lending power of the several banks.
The Board calls attention to the effect of
the war upon the banking and credit situation, both public and private, pointing out the
rise in prices, but emphasizing the fact that
while during the year 1917 there has been
a lessening of the fluidity and availability of
the country's banking resources the change is
not surprising in view of the heavy requirements. It also points out that these changes
in prices are not necessarily due to alterations
in the banking position, but that abnormal
demands and the withdrawal of labor and
capital have had an important and far-reaching
effect. "Banking expansion," the Board says,
"is an unavoidable incident of war finance, but
every effort should nevertheless be made to
counteract it so far as possible by eliminating
banking credit not clearly needed for the purpose of purchasing or carrying goods necessary
for the life of a nation at war." From the
standpoint of the private individual it is noted
that the effect of the Government's borrowing
on a large scale has been to withdraw from
the market a large proportion of the funds
normally available for other loans. This tendency has resulted in an effort to make paper
ordinarily regarded as ineligible available for
rediscount at Federal Reserve Banks. The
policy of the Board, however, has invariably
been to refuse such applications and to maintain the liquid character of bank assets.
"Under no circumstances," says the report,
"can the Board admit the eligibility of pa-
80
FEDEBAL RESERVE BULLETIN.
p e r # * * which in its essential character
fails to conform to sound banking principles.77
The report, however, suggests early consideration by Congress of the problem of corporate
financing, in the belief that no satisfactory
solution of the general corporate and credit
problem will be found that does not involve
some degree of government intervention. The
Board is of the opinion that some plan for
such intervention or aid can be worked out
that will meet the situation satisfactorily.
One effect of the war has been to enlarge the
earning power of the Federal Reserve Banks
in a very material degree. The gross earnings
are given as $15,800,000 and the net earnings as
$11,200,000. The dividends declared during
the year are about $6,800,000. Six of the
banks have paid their dividends completely
up to the end of the year 1917, while four others
have paid up to June 30, 1917, and the remaining two have paid to the end of the year 1916.
Although the banks are not operated primarily for profit, the Board calls attention to
the fact that during the coming year their
earnings will undoubtedly be large, and that
a substantial franchise tax will be paid to the
Government out of excess earnings. The
amount paid this year to the Government is
$1,134,234. In connection with the management of the banks the Board explains that
the events of the past year have done much
to bring into their proper relationship the
several elements of the Federal Reserve system, and that the position of the Board as the
foverning body of all the banks is now well
efined, the line of distinction between the
local managements of each institution and the
general policies of the system growing more
and more marked. Among the activities of
the year that are incidentally described are
the further extension and development of the
clearing and collection system and the continuation of work under the Clayton Act, permits for service as directors being granted in
182 cases. Applications for fiduciary powers
have been granted in 112 cases.
The expense of conducting the work of the
Board during the year has been a little less
than $250,000, including all salaries, while the
cost of the gold-settlement fund for the year
has been about $3,500, or $0,013 per $1,000.
While no far-reaching amendments to the
Federal Reserve act are recommended, a number of minor changes are suggested for the
consideration of Congress. Among these is a
change in the present method of electing
directors called for by the fact that under
FEBRUARY 1,1918.
present conditions only a minority of all banks
entitled to vote are taking an active part in
the selection; a change in the denominations
of Federal Reserve notes intended to permit
the issue of large bills; a change in the terms
of section 22, which relates to transactions
between directors and their respective banks;
the amendment of section 25 designed to
provide for the incorporation under Federal
Reserve charter of banks for foreign trade, and
the amendment of section 25 to permit the
establishment of branches of national banks
in the cities where such banks are located.
In closing, the Board calls attention to the
fact that due to the concentration of reserves
the Federal Reserve system is to-day the
ultimate resource of the business and financial
community and that its position as such is
unquestionable. The responsibility thus laid
upon it emphasizes the necessity of making
sure that every policy adopted must be developed with the view of maintaining and strengthening the financial position of the country and
of providing for the readjustments to follow
the war.
Acceptances to 100 Per Cent.
The Second National Bank, New York City,
the Corn Exchange National Bank, Philadelphia, Pa., and the Bank of the Manhattan Co.,
New York City, during the month have been
granted authority by the Federal Reserve
Board to accept drafts and bills of exchange
up to 100 per cent of their capital and surplus.
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:
DISTRICT No.
1.
Trustee, executor, and administrator:
National Bank of Bellows Falls, Bellows Falls, Vt.
Trustee:
City National Bank, Berlin, N. H.
DISTRICT No.
8.
Trustee, executor, administrator, and registrar of stocks
and bonds:
Firat National Bank, Greenville, Miss.
DISTRICT No.
5.
Trustee, executor, administrator, and registrar of stocks
and bonds:
Commercial National Bank, High Point, N. 0.
DISTRICT N O . 6.
Trustee, executor, administrator, and registrar of stocks
and bonds:
First National Bank, Canton, Miss.
DISTRICT N O . 7.
Trustee, executor, and administrator:
German American National Bank, Arlington, Iowa.
Home National Bank, Thorntown, Ind.
DISTRICT No.
8.
Trustee, executor, administrator, and registrar of stocks
and bonds:
Third National Bank, St. Louis, Mo.
DISTRICT NO, 9.
Trustee, executor, administrator, and registrar of stocks
and bonds:
Merchants National Bank, Billings, Mont.
Regulation of Foreign Exchange.
Following is the text of an Executive order
signed by the President on January 26, 1918,
prescribing rules and regulations under section
5 of the trading-with-the-enemy act and supplementing rules and regulations heretofore
prescribed under title 7 of the espionage act.
Whereas by virtue of the authority vested in me by the
act approved June 15, 1917, known as the espionage act,
I directed by Executive order, dated September 7, 1917,
that the regulations, orders, limitations, and exceptions
prescribed by me in relation to the export of coin, bullion,
and currency should be administered by the Secretary of
the Treasury, and upon his recommendation prescribed
certain regulations in relation thereto; and
Whereas by Executive order, dated October 12, 1917,
made under authority of the act aforesaid and of the act
approved October 6, 1917, known as the trading-with-theenemy act, I vested in the Secretary of the Treasury the
executive administration of any investigation, regulation,
or prohibition of any transactions in foreign exchange,
export, or earmarking of gold or silver coin or bullion or
currency, transfers of credit in any form (other than
credits relating solely to transactions to be exceuted
wholly within the United States) and transfers of evidences
of indebtedness or of the ownership of property between
the United States and any foreign country or between
residents of one or more foreign countries by any person
37528—18
3
81
FEDERAL EESEBVE BULLETIN.
FEBRUARY 1,1918.
within the United States, and I further vested in the Secretary of the Treasury the authority and power to require
any person engaged in any such transaction to furnish,
under oath, complete information relative thereto, including the production of any books of account, contracts,
letters, or other papers in connection therewith in the
custody or control of such person, either before or after
such transaction is completed; and
Whereas by said Executive order, dated October 12,
1917, I authorized and directed the Secretary of the
Treasury for the purpose of such executive adminietra
tion to take such measures, adopt such administrative procedure, and use such agency or agencies as he may from
time to time deem necessary and proper for that purpose
and
Whereas the Secretary of the Treasury, with the approval of the President, by order dated November 23,
1917, adopted certain administrative procedure for the
executive administration, authority and power vested in
the Secretary of the Treasury by said Executive order,
dated October 12, 1917, and designated the Federal Reserve Board to act as the agency of the Secretary of the
Treasury, subject to the approval of the Secretary of the
Treasury, to carry out such executive administration,
authority, and power vested in the Secretary of the Treasury as hereinbefore recited:
Now, therefore, upon the recommendation of the Secretary of the Treasury, and in order to vest all necessary
authority in the Federal Reserve Board to act as the agency
of the Secretary of the Treasury, in the performance of
the duties hereby imposed upon it, I hereby prescribe the
following orders, rules, and regulations in respect of such
executive administration, authority, and power, and I
hereby amend the regulations heretofore prescribed by
said Executive order, dated September 7, 1917, as herein
provided.
DEFINITIONS.
PERSON.
The term person as used herein shall be deemed to mean
an individual, partnership, association, company, or other
unincorporated body of individuals or corporation or
body politic.
DEALER.
The term dealer as used herein shall be deemed to mean
any person engaged primarily or incidentally in the business (1) of buying, selling, or dealing in foreign exchange,
or (2) of buying, selling, or dealing in securities for or
through, foreign correspondents, or (3) any person who carcies accounts or securities with orfor foreign correspondents.
DEALERS OP CLASS A.
Dealers who engage in the business of buying, selling,
or dealing in foreign exchange, or of buying, selling, or
dealing in securities for or through foreign correspondents,
and who may or may not carry accounts or securities
82
FEDERAL RESERVE BULLETIN.
FEBRUARY 1,1918.
with or for foreign correspondents shall be known as the ownership of property between the United States
and any foreign country, whether enemy, ally of enemy, or
dealers of Class A.
otherwise, or between residents of one or more foreign
DEALERS OF CLASS B.
countries, by any person within the United States, except
Dealers who carry accounts or securities with foreign cor- any such transactions or transfers conducted in conformity herewith, are hereby prohibited.
respondents or who buy, sell, or deal in securities through
such correspondents but who do not carry accounts or TRANSACTIONS IN FOREIGN EXCHANGE OR IN SECURITIES
FOR OR THROUGH FOREIGN ACCOUNT.
securities/or foreign correspondents and who do not engage
in the business of buying, selling, or dealing in foreign
CERTAIN PERSONS REQUIRED TO OBTAIN REGISTRATION
exchange or of buying, selling, or dealing in securities
CERTIFICATES.
for foreign correspondents shall be known as dealers of
No person, other than a customer, shall, after February 10,
Class B.
1918, engage in any transaction or make any transfer deDEALERS OF CLASS C.
scribed in the next preceding subdivision hereof who shall
Dealers who carry accounts or securities for foreign not have obtained, on or before that date, a registration
correspondents or who buy, sell, or deal in securities for certificate, as hereinafter provided.
such correspondents but who do not carry accounts or
Every person who is a dealer upon the date hereof, as
securities with foreign correspondents and who do not en- promptly as possible and in any event on or before
gage in the business of buying, selling, or dealing in foreign January 31, 1918, shall file, with the Federal Reserve
exchange or of buying, selling, or dealing in securities Board, through the Federal Reserve Bank of his district,
through foreign correspondents shall be known as dealers an application for a registration certificate. Such applicaof Class C.
tion shall be in form approved by the Federal Reserve
FOREIGN EXCHANGE.
Board and shall show the character of business engaged
in and whether or not an enemy or ally of enemy of the
The teimforeign exchange as used herein shall be deemed
United States or any subject or citizen of an enemy or
to mean checks, drafts, bills of exchange, cable transfers,
ally of enemy, wherever resident or domiciled, has any
or any form of negotiable or assignable instrument, or interest directly or indirectly in such business. Such
order used (a) to transfer credit or to order the payment of application shall embody an agreement on the part of the
funds in any foreign country, or (6) to transfer credit or applicant to comply with the regulations of the Federal
to order the payment of funds within the United States Reserve Board, and to permit the inspection at any time
for foreign account.
of his books and accounts and to make reports as and when
required on forms to be approved by the Federal Reserve
SECURITIES.
Board.
The term securities as used herein shall be deemed to The Federal Reserve Board may issue to such applicant
mean all evidences of ownership of property not included the appropriate registration certificate in form approved
by it, entitling the holder to engage in the class or classes
in the foregoing definition of foreign exchange.
of foreign exchange or other transactions specified in such
CORRESPONDENT.
certificate, subject to all applicable provisions of law and
The term correspondent as used herein shall be deemed to such Executive orders of the President and administrato mean any person who acts as the agent of, or for, or on tive regulations as shall have been issued or may from time
behalf of, or as the depositary of, another person, or any to time be issued by the Federal Reserve Board.
Any person who is not a dealer at the date hereof but
person who is the principal for, or on behalf of, whom
who hereafter desires to become a dealer must first obtain
another person acts as agent.
a registration certificate.
CUSTOMER.
Any person, other than a customer, who does not desire
to become a dealer but who nevertheless desires to engage
The term customer as used herein shall be deemed to in one or several transactions or to make one or several
mean any person other than a dealer who buys foreign transfers described in the next preceding subdivision
exchange from a dealer or sells foreign exchange to a dealer. hereof, may be permitted by the Federal Reserve Board,
TRANSACTIONS IN FOREIGN EXCHANGE AND CERTAIN in its discretion, to engage in any such transaction or to
OTHER TRANSACTIONS PROHIBITED EXCEPT AS HEREIN make any such transfer without first obtaining a registration certificate, and the Federal Reserve Board may likeAUTHORIZED.
wise waive any requirement hereof, other than any which
All transactions in foreign exchange, export or earmark- relates to trading with an enemy or ally of enemy, whenever
ing of gold or silver coin or bullion or currency, transfers of it is satisfied that such waiver is not incompatible with the
credit in any form (other than credits relating solely to best interests of the United States.
transactions to be executed wholly within the United
Nothing herein shall be construed to abrogate or modify
States) and transfers of evidences of indebtedness or of any existing requirement that licenses shall be obtained
FEBRUARY 1,1918.
83
FEDEKAL RESERVE BULLETIN.
from the War Trade Board in respect of any transaction
with, or for account of, an enemy or ally of enemy, or any
person acting for, or on behalf of, or for the benefit of, an
enemy or ally of enemy.
REVOCATION OF REGISTRATION CERTIFICATES.
which are not included in the reports of such correspondents but may be called upon for any information in regard
thereto desired by the Federal Reserve Board, and shall
keep all books and records in a manner which will make
it possible to furnish such information.
SPECIAL REPORTS.
Any or all such registration certificates may be revoked
at any time by direction of the Secretary of the Treasury
Whenever any holder of a registration certificate shall
or of the Federal Reserve Board.
have reason to believe that any transaction within his
knowledge involves or may involve directly or indirectly
BOOKS AND ACCOUNTS.
the payment of funds or delivery of securities to or the
Each Federal Reserve Bank through which any such transfer of credit or securities for the benefit of an enemy
registration certificate shall be issued shall furnish to the or ally of enemy, or which may involve any other transapplicant copies of all forms of reports required, and the action with an enemy or ally of enemy, he shall immebooks and records of such applicant shall thereafter be diately report the facts and circumstances to the Federal
kept in a manner which will make it possible to furnish Reserve Board through a Federal Reserve Bank.
information called for in such reports without delay.
FILING AND VERIFICATION OF REPORTS.
GENERAL REPORTS.
After obtaining a registration certificate, each holder
thereof shall file with the Federal Reserve Bank through
which such certificate shall be issued a report on forms to
be furnished by the Federal Reserve Board, showing all
accounts or securities carried with or for foreign correspondents as of the close of business on January 30, 1918, or
on such other date as the Federal Reserve Board may
require, and such other information as may be called for
on such forms and shall thereafter file with the Federal
Reserve Board, through such Federal Reserve Bank, on
dates specified by the Federal Reserve Board, reports
showing all changes in such accounts and all purchases,
sales, and other transactions in foreign exchange or securities/or or through foreign correspondents.
CUSTOMERS' STATEMENTS.
A dealer shall require every customer purchasing foreign
exchange from him or selling foreign exchange to him, to
file a statement showing the purpose of such purchase or
sale with such details as the Federal Reserve Board may
require, including a declaration to the effect that no
enemy or ally of enemy of the United States has any
interest directly or indirectly in such purchase or sale.
The Federal Reserve Board shall prescribe the form of such
declaration. Copies of such statements shall be furnished
by such dealer upon request to the Federal Reserve
Board, through the several Federal Reserve Banks.
REPORTS MADE THROUGH DOMESTIC CORRESPONDENTS.
Dealers to whom registration certificates have been
issued, and who buy, sell, or deal in foreign exchange
through domestic correspondents (for example, banking or
other institutions located in the United States), unless
otherwise directed by the Federal Reserve Board, shall
arrange with such correspondents to include such transactions in the reports of such correspondents.
Such dealers will be required to report to the Federal
Reserve Board only those foreign exchange transactions
All reports, statements, and declarations herein required,
unless otherwise specified, shall be filed with the Federal
Reserve Board through the Federal Reserve Banks.
Any or allsuchreports, statements, or declarations shall,
in the discretion of the Federal Reserve Board, be verified
by oath of the person making same.
EXAMINATIONS.
The books and records of all dealers must at all times
be open to inspection by examiners designated by the
Federal Reserve Board.
DECLARATION OF FOREIGN CORRESPONDENT
OBTAINED BY HOLDERS OF REGISTRATION
CATES.
TO BE
CERTIFI-
After dates to be fixed by the Federal Reserve Board
in respect of each foreign country, respectively, no holder
of a registration certificate shall engage in transactions
withy through, or for any foreign correspondent in such
foreign country unless he shall have obtained from such
correspondent a declaration to the following effect:
Having arranged with
to act as
[Holder of registration certificate.]
the agent or correspondent in the United States for, or on behalf of, the
undersigned, under regulations issued by the appropriate authorities of
the United States Government and/or the undersigned having agreed
to act as the foreign correspondent of the said
I/we do hereby declare that I/we will not deal or attempt to deal, directly
or indirectly, with said agent or correspondent in any transaction for
or on account of, or for the benefit of, an enemy or ally of enemy of the
United States, and will not make available for the use of an enemy or
ally of enemy of the United States any funds or property received or
credits established as a result of any transaction engaged in with or
through said agent or correspondent, and will not transmit to said agent
or correspondent for collection or credit any negotiable instrument
bearing the signature or indorsement of an enemy or ally of enemy of
the United States.
The words "enemy" and "ally of enemy" are used herein as now or
hereafter defined by laws of the United States or by proclamation of the
President of the United States.
NOTE.—If foreign correspondent is incorporated this certificate must
be executed by a duly authorized officer of such corporation.
84
FEBEUAEY 1,1918.
FEDEKAL BESEEVE BULLETIN.
SUSPENSION OF RELATIONS WITH FOREIGN CORRESPONDENTS.
If any foreign correspondent of a dealer in the United
States or any person proposing to become Ithejfforeign
correspondent of a dealer in the United States, shall refuse
or fail to make the foregoing declaration as herein required,
or if the Federal Reserve Board shall have reason to
believe that any such foreign correspondent or any such
person is dealing or trading withfanjenemy or ally, of
enemy of the United States, contrary to the provisions of
the declaration of noninterest of|enemies, herein required,
or if in the judgment of the Federal Reserve Board the
best interest of the United States requires such action, it
may prohibit any dealer or dealers in the United States
from engaging in any transaction with, through, for, or on
behalf of such correspondent or such person.
SUSPENSION OF TRANSACTIONS.
Whenever the Federal Reserve Board shall have reason
to believe that any transaction in foreign exchange or any
transfer of securities carried with or for a foreign correspondent involves or may involve trading with an enemy,
or ally of enemy, or in its judgment is incompatible with
the best interest of the United States, it may cause notice
to be served on the parties in interest to postpone the
consummation of such transaction for a period of 90 days
pending investigation of the facts, and upon investigation
if the Federal Reserve Board is of the opinion that the
best interests of the United States require such action it
may prohibit the consummation of such transaction.
The Secretary of the Treasury may likewise prohibit the
consummation of any such transaction by notice served
onjthe parties in interest (either directly or through the
Federal Reserve Board) in any case in which in his
judgment|the best interests of the United States require
such action.
Provided, however, that any holder of a Class A or Class C
registration certificate may collect maturing obligations
and coupons, checks, or drafts issued for dividends or
interest for account of a person resident in a foreign country, without making such declaration, if such holder has
filed with the Federal Reserve Board a similar declaration
executed by the person for whom collection is made.
INTEREST OR DIVIDEND CHECKS PAYABLE FOR FOREIGN ACCOUNT.
Every person issuing checks or drafts for interest or dividends after January 26, 1918, payable to any foreign
Government or to any person resident in a foreign country
shall attach to or shall print on the back of such check or
draft the following statement:
This check or draft will not be paid unless the following declaration
is executed by the person to whom it is sent for collection by the payee,
or his agent, or by the person who acts as the agent in the United States
for the payee.
From actual personal knowledge, or in reliance upon declarations or
affidavits furnished the undersigned by the parties in interest, I/we do
hereby expressly declare that no enemy or ally of enemy of the United
States is directly or indirectly interested in the proceeds of this check
or draft and that such proceeds willnot be made available for the use of an
enemy or ally of enemy of the United States; that the stock upon which
this dividend is paid (or the obligation upon which this interest is paid)
Is not and has not been owned by or held for account of an enemy or ally
of enemy of the United States since January 26,1918, and has not been
purchased by the present owner from an enemy or ally of enemy or from
a person acting for or on behalf of or for the benefit of an enemy or ally of
enemy since February 3,1917.
D E A L I N G S IN SECURITIES F O R OR T H R O U G H F O R E I G N A C COUNT.
No person shall purchase, sell, or deliver any securities
for account of any foreign Government, or for account of
any person resident in a foreign country, unless such Government or such person, as the case may be, shall have made
a declaration, in form approved by the Federal Reserve
Board, similar in effect to that required in the case of the
SPECIAL PROVISIONS ASJTO COLLECTION OF DIVIDENDS, collection of maturing obligations, for account of a foreign
INTEREST, OR MATURING OBLIGATIONS FOR FOREIGN Government or person resident in a foreign country.
ACCOUNT.
Every person presenting for collection maturing obligations, or coupons, checks, or drafts issued for dividends or
interest, for account of any foreign Government or person
resident in any foreign country, shall make a declaration
in form approved by the Federal Reserve Board, to the
effect that such collections are not made for, or on behalf
of, or for the benefit of, any enemy or ally of enemy^that
the proceeds of such collections will not be made available
lor any enemy or ally of enemy; and that the maturing
obligations, or the obligations and stocks upon which dividends or interest are to be paid, are not the property of any
enemy or ally of enemy; have not been owned by, or held
ior the account of, any enemy or ally of enemy, since
January 26, 1918, and were not purchased by the present owner from any enemy or ally of enemy or from
any person acting for or on behalf of or for the benefit of an
©nemy or ally of enemy since February 3,1917.
PROCEDURE WHERE DECLARATION OF NONINTEREST OF
ENEMY OR ALLY OF ENEMY CAN NOT B E MADE.
Any person who is unable to make a declaration of noninterest of enemy or ally of enemy required hereunder
may apply to the Federal Reserve Board for a waiver of
such declaration, submitting to such board all facts and
circumstances relating to the transaction involved which
are in the possession of the applicant. If upon investigation the Federal Reserve Board shall determine that
there is no reason to believe that any enemy or ally of
enemy is directly or indirectly interested in the transaction involved, and that its consummation will not be
incompatible with the best interests of the United States,
it may permit the transaction to be consummated without
the declaration herein required. If the Federal Reserve
Board shall have reason to believe that an enemy or ally
of enemy is or may be directly or indirectly interested in
FEBRUARY 1,1918.
85
FEDEKAL KESEBVE BULLETIN.
the transaction, it shall transmit to the War Trade Board APPLICATIONS FOR REGISTRATION CERTIFICATES AND
all records in the case for such action as that board may
EXPORT LICENSES, PROVIDED FOR HEREUNDER, BY
determine to be necessary.
PERSONS RESIDING IN ANY DEPENDENCY OF THE
EXPORT AND EARMARKING OF COIN, BULLION, OR CURRENCY.
The following regulations prescribed by Executive
order, dated September 7, 1917, shall continue in force
as herein amended.
Any person desiring to export from the United States or
any of its territorial possessions to any foreign country
named in the proclamation dated September 7, 1917, any
coin, bullion, or currency, shall first file an application in
triplicate with the Federal Reserve Bank of the district
in which such person is located for a special or general
license. Applications filed must contain statements under
oath and showing in detail the nature of the transaction,
the amount involved, the parties directly and indirectly
interested, and such other information as may be of assistance to the proper authorities in determining whether
the exportation for which a license is desired will be compatible with the public interest. All such applications
should be made on the standard form prescribed by the
Federal Reserve Board.
Each Federal Reserve Bank shall keep a record copy of
each application filed with it under the provisions of this
regulation and shall forward the original application and
a duplicate to the Federal Reserve Board at Washington,
together with such information or suggestions as it may
believe proper in the circumstances, and shall in addition
make a formal recommendation as to whether or not, in
its opinion, the exportation should be permitted.
The Federal Reserve Board, subject to the approval of
the Secretary of the Treasury, is hereby authorized and
empowered, upon receipt of such application and the
recommendation of the Federal Reserve Bank, to make
such ruling as it may deem proper in the circumstances;
and if, in its opinion, the exportation in question be compatible with the public interest, to permit said exportation
to be made; otherwise to refuse it.
No gold or silver coin, or bullion, or currency shall be
set aside and earmarked for safekeeping for any person
without the written approval of the Federal Reserve
Board.
UNITED STATES.
Applications to the Federal Reserve Board either for
registration certificates or for licenses to export coin,
bullion or currency may be made by persons residing in
any dependency of the United States (including the
Philippine Islands, Alaska, Guam, Hawaiis Porto Rico,
Virgin Islands, and Canal Zone) through such agency
located in any such dependency as may be hereafter
designated by the Federal Reserve Board, instead of
through a Federal Reserve Bank; but until an agency has
been so designated in any such dependency, persons
residing therein may make such applications through any
Federal Reserve Bank. The Federal Reserve Board may
from time to time postpone, in respect of any one or more
of such dependencies, the date on and after which persons
residing therein shall be prohibited from engaging in any
of the transactions or making any transfer hereinbefore
prohibited without having obtained registration certificates, in case such registration certificates can not be obtained on or before the date hereinbefore specified.
(Signed)
The WHITE HOUSE,
WOODROW WILSON.
26 January, 1918.
The following forms were approved by the
Federal Reserve Board in connection with the
above Executive order:
(Form FE 107. Application for registration certificate.)
of
hereby makes
application for a Class.. registration certificate to be issued under authority of Executive order of the President, dated January 26,1918, made
by virtue of the authority vested in the President by the act of Congress
approved June 15, 1917, known as the Espionage Act, and the act
approved October 6,1917, known as the Trading-with-the-Enemy Act.
The applicant expressly undertakes and agrees, in consideration of the
issuance of the certificate applied for, (a) that all books and records
relating to any transaction engaged in under authority of such certificate
shall be open at all times to inspection by the examiners designated by
the Federal Reserve Board; (6) that all reports required under regulations of the Federal Reserve Board will be promptly furnished on forms
approved by the Federal Reserve Board; (c) that all transactions engaged in under authority of this certificate will be conducted in accordLICENSES FROM WAR TRADE BOARD IN TRANSACTIONS ance with regulations now or hereafter made by the Secretary of the
INVOLVING TRADING WITH AN ENEMY OR ALLY OP Treasury or by the Federal Reserve Board, and with such Executive
orders as the President may have issued or may hereafter issue.
ENEMY.
It is expressly represented to the Federal Reserve Board that the
Applications to the Federal Reserve Board for permission to export or earmark gold or silver coin or bullion or
currency shall be accompanied by a certified copy of a
license issued by the War Trade Board, whenever any such
transactions involve or may involve trading directly or
indirectly with an enemy or ally of enemy or with any
person acting for, or on behalf, of, or for the benefit of, an
enemy or ally of enemy.
business engaged in by the applicant is
;
that no enemy or ally of enemy and no subject or citizen of an enemy or
ally of enemy has any interest directly or indirectly in the business of
the applicant except as shown on statement accompanying and forming
part of this application, marked Exhibit A.
IN!WITNESS WHEREOF, this application is executed this
day
Of
,191...
To the FEDERAL RESERVE BOARD,
Washington, D. C.
86
FEDEBAL BESEBVE BULLETIN.
FEBRUARY 1,1918.
(Form FE 110. Registration certificate, class C.)
NOTE.—Exhibit A should consist of a copy of report, if any, made to
the Alien Property Custodian in compliance with the provisions of the
This is to certify that
of...
is entitled to
Trading-with-the-Enemy Act, with such additional information as the (1) carry accounts or securities for foreign correspondents, and to engage
circumstances may require.
in the business of (2) buying, selling, or dealing in securities for foreign
correspondents.
RECOMMENDATION OF FEDERAL RESERVE BANK.
All such transactions shall be subject to all applicable provisions of law
The foregoing application has been examined and it is recommended and to such Executive orders of the President and administrative regulations of the Secretary of the Treasury or of the Federal Reserve Board
that the certificate applied for I
as have been or may hereafter be issued.
This certificate does not entitle the holder to engage in the business of
(a) buying, selling, or dealing in foreign exchange; or of (6) buying,
selling, or dealing in securities through foreign correspondents; or to
(c) carry accounts or securities with foreign correspondents.
This certificate does not entitle the holder to engage in any transaction
(Form FE 108. Registration certificate, Class A.)
which involves or may involve directly or indirectly trading with an
enemy or ally of enemy of the United States, and is subject to revocation
This is to certify that
, of
at any time by order of the Secretary of the Treasury or of the Federal
is entitled to engage in the business of: (1) Buying, selling, or dealing Reserve Board.
in foreign exchange; (2) buying, selling, or dealing in securities for forIssued under authority of Executive order of the President, dated
eign correspondents; and (3) buying, selling, or dealing in securities January 26,1918, made by virtue of the authority vested in the President
through foreign correspondents; and is entitled to (4) carry accounts of by the act of Congress approved June 15,1917, known as the espionage
secutities/or foreign correspondents; and to (5) carry accounts or securi- act and the act approved October 6,1917, known as the trading-withties with foreign correspondents. All such transactions shall be subject the-enemy act.
to all applicable provisions of law and to such Executive orders of the
FEDERAL RESERVE BOARD,
President and administrative regulations of the Secretary of the Treasury
By
.
or of the Federal Reserve Board as have been or may hereafter be issued.
Governor.
Countersigned:
This certificate does not entitle the holder to engage in any transaction
which involves or may involve directly or indirectly trading with an
enemy or ally of enemy of the United States, and is subject to revocation
at any time by order of the Secretary of the Treasury or of the Federal (Form FE 113. Declaration of noninterest of enemies to be filed by
Reserve Board.
foreign correspondents or persons acting for foreign correspondents.)
Issued under authority of Executive order of the President, dated
From actual personal knowledge, or in reliance upon declarations or
January 2fi, 1918, made by virtue of the authority vested in the President
by the act of Congress approved June 15,1917, known as the Espionage affidavits furnished the undersigned by the parties in interest, I/we do
Act, and the act approved October 6,1917, known as the Trading-with- hereby expressly declare that no enemy or ally of enemy of the United
States is directly or indirectly interested in the transaction described
the-Enemy Act.
below; that the property or evidence of indebtedness involved therein
FEDERAL RESERVE BOARD,
is not and has not been owned by, or held for the account of an enemy
By.
or ally of enemy of the United States since
, 1918; that
Governor,
such property or evidence of indebtedness has not been purchased by
Countersignature:
the present owner from an enemy or ally of enemy of the United States
or from any person acting for or on behalf of or for the benefit of an enemy
or ally of enemy of the United States since February 3,1917, and that
the funds derived from the transactions described herein will not be
made available for the use of an enemy or ally of enemy of the United
(Form FE 109. Registration certificate, class B.)
States. The words "enemy" and "ally of enemy" are herein used
This is to certify that
of
is entitled to as now or hereafter defined by the laws of the United States, or by
(1) carry accounts or securities with foreign correspondents, and to proclamation of the President of the United States.
engage in]the business of (2) buying, selling, or dealing in securities through NOTE.—If the transaction is engaged in by a corporation the foregoing
foreign correspondents.
declaration must be executed by a duly authorized officer.
'^
All such transactions shall be subject to all applicable provisions of law
andtosuchExecutive>rders:of the President and administrative regulations of the Secretary of the Treasury or of the Federal Reserve Board Transaction referred to in and made a part of the foregoing
as have been or may hereafter be issued.
declaration.
This certificate does not entitle the holder to engage in the business of
(a) buying, selling, or dealing in foreign exchange; or of (&) buying,
Other
Nature of party
to Foreign corselling, or dealing in securities for foreign correspondents, or to (c) carry
transaction; transaction:
respondent,
accounts or securities for foreign correspondents.
Property i. e., sale,
i.
e.,
for whose
or evi- hypotheca- purchaser, account
This certificate doespiot entitle the holder to engage in any transaction
dence of tion, deliv- lender, in whose or
be- Amount.
Date.
which involves or may involve directly or indirectly trading with an
ery for
indebtedperson to helf person
enemy or ally of enemy of the United States and is subject to revocation
ness in- safekeeping, whom
demaking
volved. or collection livery is declaration
at any time by order of the Secretary of the Treasury or of the Federal
of maturing made, or
Reserve Board.
is acting.
obligations. obligor.
Issued under authority of Executive order of the President, dated
January 26,1918, made by virtue of the authority vested in the President
by the act of Congresss approved June 15,1917, known as the espionage
act, and the act approved October 6,1917, known as the trading-withthe-enemy act.
FEDERAL RESERVE BOARD,
By
Countersigned:
Governor.
FEBRUARY 1,1918.
FEDERAL BESERVE BULLETIN,
Trading With the Enemy.
The following statements for the press were
issued by the War Trade Board on January 26:
PROTESTS OF " ENEMY" PAPER.
The War Trade Board has authorized all
persons in the United States holding notes,
checks, or drafts, upon which an " enemy" or
"ally of enemy" appears, or the handling of
which involves in any way trading with, or
for, or on behalf of, an "enemy" or "ally of
enemy," to perform such acts as may be necessary to perfect their rights against those
secondarily liable on such notes, checks, or
drafts, in the event that acceptance or payment
on such drafts or checks, or payment on such
notes is refused: Provided, however, that this
authorization shall not be deemed to legalize
the presentation of any drafts, checks, or notes,
for acceptance or payment, or the receipt of
payment on any drafts, checks, or notes, 7upon
which an "enemy" or "ally of enemy' appears, or where such presentation would involve trading with, or for, or on behalf of, an
"enemy" or "ally of enemy," without a license
from the War Trade Board.
PAYMENT OF UNITED STATES PATENT OFFICE
The War Trade Board has authorized the
payment of United States Patent Office fees
requisite for the filing, prosecution, registration, and preservation of patents, trade-marks,
prints, labels, or copyrights, of an "enemy"
or "ally of enemy," by any person within the
United States, where such person is the holder
of a power of attorney granted by such
"enemy" or "ally of enemy:" Provided, however, that when such fees are to be paid from
the funds of an "enemy" or "ally of enemy"
in the United States, such payment shall be
made subject to the approval of the Alien
Property Custodian.
COUPONS FOR FOREIGN OWNERS DUE PRIOR TO
JANUARY 1, 1918.
The War Trade Board has authorized banks
and others having coupons to collect, which
were due prior to January 1, 1918, for foreign
individuals, firms, corporations, or others, to
make such collection without obtaining licenses
87
from the War Trade Board or authority from
the Federal Reserve Board: Provided, however, that any funds so received, which the
collecting agency has reason to believe are the
property of an "enemy" or "ally of enemy,"
or will be used for the benefit, directly or
indirectly, of an "enemy" or "ally of enemy,"
must be held in separate account under notice
to the Alien Property Custodian.
Sale of War Savings Certificates.
The Treasury Department, in a circular
dated January 2, 1918, has furnished information regarding a method of obtaining warsavings certificate stamps and United States
thrift stamps for cash, which may be used as
an alternative to the method heretofore
provided. The circular in question is as
follows:
[1917. Department Circular No. 96. War-Savings Circular No. 3.
Loans and Currency.)
As an alternative to the method provided in
Treasury Department Circular No. 95, any
agent for the sale of war-savings certificates,
war-savings certificate stamps, and United
States thrift stamps (as well as individuals,
partnerships, corporations, and the duly authorized representatives of labor, fraternal, and
other associations, even though not previously
agents) may obtain from a Federal
Reserve Bank, for sale to the public, warsavings certificate stamps in excess of $1,000
(maturity value), and also United States thrift
stamps, with an adequate supply of warsavings certificates and thrift cards, upon the
conditions stated below.
Anyone desiring to obtain war-sayings certificate stamps and United States thrift stamps
as provided in this circular must execute and
deliver to a Federal Reserve Bank an application on Form No. 1025, hereto attached (copies
of which may be had from any Federal Reserve
Bank).
Such application must bear the recommendation of a Federal director of war-savings, a
State director of war-savings, or of some other
person acceptable to such Federal Reserve
Bank. Upon approval of such application by
such Federal Reserve Bank the applicant may,
from time to time, deposit cash with such
Federal Reserve Bank, as fiscal agent of the
United States, and obtain therefor deliveries
88
FEDERAL RESTSBVE BULLETIN.
of war-savings certificate stamps at the current
cost price thereof during the month in which
such stamps shall be obtained, as stated
thereon, and United States thrift stamps at 25
cents each. Upon delivery of any such stamps
the applicant becomes a cash agent of the
second class.
The aggregate amount of war-savings certificate stamps and United States thrift stamps
obtained by any such agent less amounts reported as sold by such agent shall not exceed
the aggregate amount stated in the application
of such agent. Such application may, however, be amended, with the approval of such
Federal Reserve Bank, so as to include such
additional amount of war-savings certificate
stamps and United States thrift stamps as
such agent may desire to obtain.
Each cash agent of the second class, whenever from time to time required by the
Secretary of the Treasury, shall render a report
to such Federal Reserve Bank, substantially
in Form No. 1026, hereto attached (copies of
which may be had from such Federal Reserve
Bank), of the number of war-savings certificate
stamps and United States thrift stamps obtained from such Federal Reserve Bank
theretofore sold by such agent.
Any cash agent of the second class who shall
have complied with the terms of such agency
may at any time surrender such agency and
redeliver to such Federal Reserve Bank, as
Fiscal Agent of the United States, (1) all
unsold war-savings certificate stamps and
United States thrift stamps and (2) all unissued war-savings certificates and thrift cards
obtained by such agent from such Federal
Reserve Bank.
. ., .
, .
Any cash agent of the second class whose
agency shall have been terminated shall thereupon, and each cash agent of the second class
shall in any event, on or before December 31,
1918, redeliver to such Federal Reserve Bank,
as fiscal agent of the. United States, (1) all
unsold war-savings certificate stamps and
United States thrift stamps and (2) all unissued
war-savings certificates and thrift cards obtained by such agent from such Federal Reserve
Bank.
Upon any redelivery of stamps, as provided,
in either of the two preceding paragraphs,
such Federal Reserve Bank, as fiscal agent of
the United States, shall return to such agent
the amount deposited with such Federal Re-
FEBRUARY 1,1918.
serve Bank by such agent for each war-savings
certificate stamp redelivered and 25 cents for
each United States thrift stamp redelivered.
In determining the amount deposited with such
Federal Reserve Bank by any cash agent of the
second class for war-savings certificate stamps
so redelivered, sales shall be deemed to have
been made by such agent in the order in which
deliveries of such stamps may have been obtained by such agent, so that earlier sales shall
be deemed to have been made out of earlier
deliveries.
The Secretary of the Treasury reserves the
right to withdraw this circular, or to amend
from time to time any of the provisions hereof,
and to terminate any agency created hereunder.
[Form 1025.]
APPLICATION.
To THE FEDERAL RESERVE BANK OP
,
As Fiscal Agent of the United States:
The undersigned desires to become an agent of the second class for the
issue and sale of war-savings certificates, war-savings certificate stamps,
and United States thrift stamps, in accordance with and subject to the
respective provisions of Treasury Department Circulars Nos. 94 and 96 t
and to obtain from such Federal Reserve Bank, from time to time, for
sale to the public, as provided in such circulars, war-savings certificate
stamps and United States thrift stamps in the aggregate amount of
$
4 ... (the amount to be inserted may be more than the amount
presently desired and should be ample to cover the agent's requirements),
and from time to time to obtain additional war-savings certificate stamps
and United States thrift stamps, in place of stamps reported sold by the
undersigned. Such war-savings certificate stamps shall be taken at the
current cost price thereof during the month when obtained, as stated
thereon, and such thrift stamps shall be taken at 25 cents each.
The undersigned hereby agrees—
(a) To sell war-sayings certificate stamps, obtained by the undersigned,
for cash only and at the current cost price stated thereon; :. .
(&) To sell tfnited States thrift stamps for cash only and at 25 cents
each;
(c) To endeavor to sell such stamps as promptly as possible; and
(d) Faithfully to perform all other obligations of an agent of the second
class; as herein and in said circulars provided or as provided in any
supplemental or amendatory regulations.
Upon delivery to the undersigned of any war-savings certificate stamps
or United States thrift stamps desired to be obtained hereunder, the
agreement contained in this application shall become binding upon the
undersigned, who shall thereupon become a cash agent of the second
class.
Dated,
1918.
Signature in full.
(Authorized signature required.)
Address, number and street
Gity or town
------- —
County
State
Application recommended by
, 1918.
Application approved by Federal Reserve Bank of
,
1918.
by..
,.
FEBRUARY 1,1918.
FEDEKAL EESEBVE
[Form 1026.]
BULLETIN.
89
tions received during the year 1916 with capital of $12,525,000.
Charters granted.—During the year 1917, 194
charters were granted, capital of $12,085,000.
Dated
,1918.
Fifty-seven of these banks with capital of
To FEDERAL RESERVE BANK OP
,
As Fiscal Agent of the United States:
$3,205,000 were conversions of State banks or
The undersigned hereby renders the following report of sales of war- reorganizations of State and private banks.
sayings certificate stamps and United States thrift stamps obtained by
This compares with 122 charters granted
the undersigned from such Federal Reserve Bank:
during the year 1916 with capital of $6,890,000,
War-sav- United
48 of which, with capital of $3,080,000, were
ings cerconversions of State banks or reorganizations
tificate
thrift
stamps. stamps. of State and private banks.
Capital increases.—In 1917, 175 national
*Sales to
1918, not prebanks increased their capital stock in the sum
viously reported (number of stamps)
of $22,934,990, against 92 banks increasing
* NOTE.—Agents should fill in date to which they are able conveni- their capital by $14,785,000 during 1916.
entlyito make report of sales unless some specific date is required by the
Capital reductions.—Thirteen banks reduced
Secretary of the Treasury.
their capital by $750,800 during 1917, against
{If additional stamps are desired tolreplace\stamps sold, the following 18
requisi'
banks reducing their capital $915,000 the
tion should be filled in.)
~~~"""previous year.
Liquidations.—Seventy-four national banks
REQUISITION FOR STAMPS.
went
into voluntary liquidation (exclusive of
The application filed by the undersigned states that the
those consolidating with other national banks)
undersigned desires to obtain war-savings certificate
during the year 1917, their aggregate capital
stamps and thrift stamps to an amount not in excess of.. $
War-savings certificate stamps (obtained, but
being $6,522,500, as compared with 102 such
not now nor heretofore reported sold), at
banks liquidating during 1916, with an aggre$
each
$
gate capital of $9,233,000.
Thrift stamps (obtained, but not now nor hereLiquidations for consolidation with national
tofore reported sold), at 25 cents each
banks.—During 1917, 25 national banks with a
Total
capital of $5,370,000 liquidated and were conDifference (being aggregate amount of such stamps pressolidated with other national banks, while
ently obtainable upon deposit of cash)
during the previous year the liquidations of
Against which the undersigned desires to obtain,
upon deposit of cash therefor, as provided inH
this class were 38 banks with capital of
Treasury Department Circular No. 96:
$8,525,000.
War-savings certificate stamps, at $
each.. $
Charters refused.—During 1917 the CompThrift stamps, at 25 cents each
troller of the Currency refused 31 applications
Total.,
for charters for new national banks. During
the year 1916 charters were refused for 17 new
(Name of agent.)
national banks.
By.
Receivers appointed.—During the year 1917
(Official signature required.)
receivers were appointed for 4 national banks
(Address.)
with an aggregate capital of $1,125,000 (exclusive of 1 bank, which was closed during the
year
but subsequently restored to solvency and
New National Bank Charters and Capital
reopened). During the previous year there
Increases.
were 8 such receiverships, the aggregate capital
In a statement issued on January 19 the being $480,000.
Comptroller of the Currency furnishes the folBusiness Failures During 1917.
lowing summary of the operations of the year
Numbering 13,855 and involving $182,441,1917 respecting membership in the national
371,
commercial failures in the United States
bank system:
during 1917, as reported to R. G. Dun & Co.,
Charters applied for.—During the calendar
disclosed substantial reduction from the morrear 1917 this office received 291 applications
tality
of the previous year, when there were
or charters for new national banks with capital
16,993
defaults for $196,212,256. In 1915 the
of $19,895,000, as compared with 248 applicaREPORT OF SALES OF WAR-SAVINGS CERTIFICATE
STAMPS AND UNITED STATES THRIFT STAMPS,
?
37528—18
1
90
FEDERAL RESERVE BULLETIN.
number of insolvencies was 22,156, the largest
on record, and the amount was $302,286,148,
while in 1914 there were 18,280 business reverses for the exceptional sum of $357,908,859.
The 1917 returns, in fact, make the best
numerical exhibit since 1911, and it is necessary
to go back to 1909 to find a smaller indebtedness.
Without exception, fewer failures occurred
last year than in 1916 in all of the 12 Federal
Reserve districts, and only in the first, second,
seventh, and twelfth districts was there any
increase in the liabilities. Aside from the
ninth district, where there was a decrease of 27
defaults, or 5 per cent, the numerical reductions were of considerable size in every instance,
and the showing in this respect was especially
good in the sixth, third, tenth, fifth, eleventh,
and eighth districts. The expansion in the
indebtedness, owing to a few insolvencies of
unusual magnitude, was particularly large in
the second and first districts, and it was about
$1,800,000 in the twelfth district; but these
increases were more than offset by the contraction elsewhere, the falling off in the sixth district alone exceeding $9,000,000.
The number of commercial failures last year
and the preceding year, with the amount of
liabilities, in each Federal Reserve district is
compared below:
FEBRUARY 1,1918.
commercial, the latter including agents and
brokers:
Manufacturing.
Districts.
Num- Liabilities.
ber.
First
Second
Third
Fourth
Fifth
Sixth
Seventh
Eighth
Ninth....
Tenth
Eleventh
Twelfth
Districts.
1917
First
Second....
Third
Fourth....
Fifth
Sixth
Seventh...
Eighth....
Ninth
Tenth
Eleventh.
Twelfth...
1,470
2,501
709
1,109
821
1,098
1,859
818
513
579
674
l,'7O4
1916
1,639
2,843
974
1,278
1,096
1,707
2,174
1,042
540
802
870
2,028
Liabilities.
ber.
Num- Liabilities.
ber.
612 jS12,521,166
762 35,919,628
935 I 25,631,770 1,383 15,042,779
6,264,460
467 3,507,862
212
760 4,626,294
295 8,178,829
626 5,361,386
173 ! 3,219,474
906 7,417,789
154 i 3,738,856
8,845,204
532 I 10,832,058 1,209
127 2,221,562
658 3,594,751
2,742,869
69 '
429
579,135
111 ; 1,771,679
439 2,628,074
3,685,075
60 :
599
402,914
6,744,958
411 4,181,604 1,192
U . S . . 3,691 | 79,543,507
96 81,801,769
183 11,963,599
777,790
30
54 2,943,894
247,745
22
38 1,532,571
118 3,362,050
758,794
33
97,512
15
439,360
29
402,463
15
101 8,453,648
734
9,430 | 70,116,669
32,781,195
Strictly financial failures, which in the returns tabulated *for this report are separated
from commercial defaults, numbered 42 in the
United States last year, as against 50 the preceding year, with liabilities of $18,451,964, as
compared with $10,396,779 in 1916. The
figures for each of the Federal Reserve districts
are printed below:
Banking failures for 1917.
Number.
Liabilities.
Districts.
First
Second
Third
Fourth. . .
Fifth
Liabilities.
Sixth..
Seventh
Eighth . . . .
. ..
Ninth.
j
1917
1916
Tenth
Eleventh
§20,242,563 §15,304,555 Twelfth
52,638,148 46,507,166
United States
10,550,112
11,032,593
15,749,017
17,683,783
8,828,605 12,428,457
12,689,216 22.056,677
23,039,312 22,617,920
6,575,107
8,888,513
3,419,516
4,724,399
4,839,113
8,808,637
4,490,452
8,571,775
19,380,210
17,587,781
Commercial failures, year 1917.
Number.
Brokers and
agents.
Trading.
1917
1916
1
2
2
1
1
6
2
16
9
4
2
14
6
6
3
5
2
6
1
42
50
Q
,
1917
113,025
1,510,000
1916
290,666
§175,000
1,200,000
100,000
972,601
480,000
3,489,178
1,311,000
965,000
425,000
2,816,239
65,000
1,489,000
150,000
18,451,964
10,396,779
4,657,000
7,992,000
565,000
183,700
Growth of Resources of National Banks.
According to a statement of the Comptroller
of the Currency issued on January 9, the reUnited States.
13,855 16,993 182,441,371 196,212,256 ports of the 7,656 national banks as of November 20, 1917, the compilation of which has
In the following table commercial failures in just been completed, show total resources of
the United States are shown by the three lead- 18,553 million dollars. This is an increase
ing classes: Manufacturing, trading, and other over the figures of November 17, 1916, of 3,033
FEBRUARY 1,1918.
FEDEBAL EESEEVE BULLETIN,
million dollars, and an increase over September 11, 1917—the greatest which had been reported up to that time—of 2,009 million
dollars. These resources exceed by more than
500 million dollars the total resources of all
State banks (doing a commercial business), all
private banks, and all trust companies in the
United States as of June 20, 1917—the latest
date for which State bank returns have been
compiled—including also the total resources
at that time of the 12 Federal Reserve Banks.
Total deposits on November 20, 1917,
amounted to 14,798 million dollars. This was
an increase over November 17, 1916, of 2,309
million dollars, and an increase as compared
with September 11, 1917, of 1,564 million
dollars. Of the 1,564 millions increase in deposits since September 11, 1917, 641 millions
was with the national banks of the central
reserve cities; 446 millions with the national
banks in other reserve cities, and 477 millions
with the country banks.
The only States whose banks showed no
increase between the September and November calls were Maine, Illinois, Michigan, Iowa,
and Nebraska. The State in which banks outside the reserve cities showed the largest increase was Texas, whose increase was 83
million dollars. Tne next largest increase was
in Oklahoma, of 45 million dollars. The
country banks in New York State increased 40
million dollars. The next largest increases
were in New Jersey and North Carolina of 22
millions each, followed by Arkansas with 19
millions; South Carolina and California with
18 millions each, and Massachusetts and Pennsylvania with 17 millions each. These figures
indicate that the growth in deposits in our
national banks is wide and general, and not
confined to any particular section or locality.
Loans and discounts on November 20, 1917,
amounted to 9,535 million dollars. This was an
increase of 1,189 million dollars as compared
with November 17 the previous year, and an
increase as compared with September 11, 1917,
of 480 million dollars. The proportion of loans
and discounts to total deposits on November
91
20, 1917, was only 64.43 per cent, as against the
proportion of loans and discounts to deposits
on November 17, 1916, of 66.83 per cent, and as
compared with 68.42 per cent on September 11,
1917.
Cash in vaults and due from Federal Reserve
Banks, including items in process of collection
on November 20, 1917, amounted to 1,759
million dollars, as compared with 1,507 million
dollars on November 17,1916, and as compared
with 1,666 millions on September 11, 1917.
United States bonds and certificates of indebtedness, including Liberty bonds held by
national banks November 20, 1917, amounted
to 2,354 million dollars, an increase as compared with November 17, 1916, of 1,629 million
dollars, and an increase as compared with September 11, 1917, of 1,195 million dollars. The
increase was very largely represented by
Government short-term certificates of indebtedness, a large proportion of which has been
paid off since November 20, 1917.
Bills payable and rediscounts November 20,
1917, amounted to 600 million dollars, an increase over November 17, 1916, of 526 million
dollars, and an increase over September 11,
1917, of 314 million dollars, This increase is
mainly explained by temporary loans made
with Federal Reserve Banks in connection with
the second Liberty loan, which since November
20 have been largely paid.
Bonds, securities, etc., other than Government bonds amounted November 20, 1917, to
1,906 million dollars, an increase since November 17, 1916, of 196 million dollars, and an
increase over September 11, 1917, of 43 million
dollars.
Capital, surplus, and undivided profits on
November 20, 1917, amounted to 2,236 million
dollars, an increase over November 17, 1916, of
93 million dollars.
The Comptroller of the Currency, in a statement issued on January 21, said that during the
nine months ending December 31, 1917, United
States Government bonds held on deposit as
92
FEDERAL BESERVE BULLETIN.
security for circulating notes of national banks
increased by $19,054,890.
Since March 31, 1917, the amount of bonds
deposited has shown a steady increase each
month, rising from $664,526,370 on the date
mentioned to $683,581,260 at the close of the
year.
New National Bank Charters.
The Comptroller of the Currency reports the
following increases and reductions in the number of national banks and the capital of
national banks during the period from December 29, 1917, to January 25, 1918, inclusive:
13
$650,000
24
2,670,000
Aggregate number of new charters and
banks increasing capital
37
With aggregate of new capital authorized
. - 3,320,000
Number of banks liquidating (other than
those consolidating with other national
banks)
Capital of same banks
Number of banks reducing capital
Reduction of capital
Total number of banks going into liquidation or reducing capital (other than those
consolidating with other national banks).
Aggregate capital reduction
Alabama:
Birmingham—American Trust
& Savings Bank
Eufaula—Bank of Eufaula
Marion—Marion Central Bank...
Montgomery—Sullivan Bank &
Trust Co
Total.
California:
San Fernando—San Fernando
Valley Savings Bank
Stockton—Farmers & Merchants
Colorado:
Denver—International Trust Co.
Connecticut:
Bridgeport—Bridgeport Trust Co
New Haven—Union & New
Haven Trust Co
Total.
Delaware:
Wilmington—
& Wilmington Trust Co
Security Trust & Safe Deposit Co
Total.
8
310,000
1
25,000
District of Columbia:
Washington—Continental Trust
Co
Florida:
Deland—Volusia County Bank..
Tampa—Citizens Bank & Trust
Co
Total.
9
335,000
The foregoing statement shows the aggregate of
increased capital for the period of the banks
embraced in statement was
3,320,000
Against this there was a reduction of capital
owing to liquidations (other than for consolidation with other national banks) and
reductions of capital of
335,000
Net increase
ninety-six State institutions are now members
of the system, having a total capital of
$232,609,800, total surplus of $312,154,446,
and total resources of $5,036,051,076.
Total.
Banks\
New charters issued to
With capital of
Increase of capital approved for
With new capital of
2,985,000
The following list shows the State institutions which have been admitted to membership
in the Federal Reserve system up to and including January 31, 1918. Two hundred and
Total resources.
Capital.
Surplus.
$500,000
100,000
50,000
$250,000 $5,836,700
14,000
378,828
100,000
497,661
250,000
25,750
605,582
900,000
389,750
7,318,771
25,000
640,000
2,500
195,000
100,456
4,488,260
665,000
197,500
4,588,716
500,000
500,000
13,803,659
500,000
300,000
7,866,545
650,000
500,000
4,574,303
1,150,000
800,000
12,440,848
1,000,000
500,000 13,141,081
600,000
1,600,000
700,000
5,909,691
1,200,000 19,050,780
1,000,000
100,000
100,000
100,000
1,217,318
250,000
500,000
3,550,995
350,000
600,000
4,289,237
Georgia:
Athens—American State Bank..
100,000
20,000
538,635
AtlantaCentral Bank & Trust Corporation
, 1,000,000
300,000 9,620,109
Trust Company of Georgia.., 1,000,000 1,000,000 3,893,161
Brunswick—Brunswick Bank &
Trust Co
100,000
72,000 1,049,176
SavannahCitizens & Southern Bank.. 1,000,000 1,000,000 18,537,851
Savannah Bank & Trust Co.
630,000
570,000 8,415,862
West Point—Citizens Bank
,
50,000
172,477
Total.
Idaho:
Genesee—Genesee Exchange
Bank
Kimberly—Bank of Kimberly..
Total.
State Banks and Trust Companies Admitted.
FEBRUARY 1,1918.
Illinois:
ChicagoAustin State Bank
Central Trust Co. of Illinois.
Chicago Savings Bank &
Trust Co.
First Trust & Savings Bank
Foreman Bros. Banking Co.
Harris Trust & SavingsBank
Home Bank & Trust Co
Hyde Park State Bank
Kaspar State^Bank
3,880,000 2»962,000 42,227,271
25,000
35,000
12,500
10,250
482,091
389,592
60,000
22,750
871,683
200,000
6,000,000
60,000 2,668,743
1,000,000 54,074,035
1,000,000
200,000 12,733,891
5,000,000 5,000,000 84,207,394
1,500,000
500,000 18,141,352
2,000,000 2,000,000 33,570,255
300,000
75,000 2,428,522
200,000
50,000 1,840,530
500,000
300,000 6,476,754
Capital.
Illinois—Continued.
Chicago—Continued.
Mechanics & Traders State
Bank
Merchants Loan & Trust Co.
Noel State Bank
,
Standard Trust & Savings
Bank
State Bank of Chicago
,
Union Trust Co
United State Bank of Chicago
Cicero—Kirchinan State Bank...
Effingham—Effingham
State
Bank
Elmhurst—Elmhurst
State
Bank
Evanston—State Bank of Evanston
JolietCommercial Trust & Savings
Bank
Joliet Trust & Savings Bank.
Kewanee—Union State Savings
B ank & Trust Co
Martinsville—Martinsville State
Bank
Oak Park—Oak Park Trust &
S avings B ank
Oak Park—Suburban Trust &
Savings Bank
Quincy—State Savings Loan &
Trust Co
Total.
Indiana:
Elkhart—St. Joseph Valley Bank
Kentland—Discount & Deposit
State Bank
. Paoli—Paoli State Bank
Terre Haute—Terre Haute Trust
Co
Total.
Iowa:
Brighton—Brighton State Bank.
Cedar Falls—Security Trust &
Savings Bank
Clinton—Peoples Trust & Savings Bank
,
Des Moines—Iowa Loan & Trust
Co
Gilman—Citizens Savings Bank.
Mason City—Commercial Savings Bank
Ottumwa—Ottumwa
Bank
Sioux City—Bankers Loan &
Trust Co
Sutherland—First Savings Bank,
Thompson—State
Bank
of
Thompson
,
Vail—Farmers State Bank
Total.
Fairview—Fairview State Bank.
Fort Scott—Fort Scott State
Bank.
Hiawatha—Morrill & Janes Bank
Wichita—Southwest State Bank.
Winfield—The State Bank....
Total.
Kentucky:
Louisville—German Insurance
Bank
Maysville—First Standard Bank
& Trust Co
Mount Sterling—ExchangeBank
of Kentucky
Total.
93
FEDERAL BESEBVE BULLETIN.
FEBRUARY 1,1918.
Surplus.
Total resources.
$200,000
3,000,000
300,000
$50,000 $1,920,040
8,000,000 109,517,884
75,000 2,428,746
1,000,000
1,500,000
1,500,000
200,000
500,000
3,000,000
1,500,000
30,000
100,000
25,000
50,000
10,000
60,000
25,000
9,980,043
38,004,507
37,348,934
869,220
613,746
721,719
703,766
4,142,457
150,000
200,000
100,000
100,000
5,000
25,000
569,684
766,311
100,000
25,000
1,170,562
50,000
17,000
388,031
200,000
50,000
2,687,734
100,000
10,000
Louisiana:
Gretna—Jefferson Trust & Savings Bank
Iota—Bank of Iota
New OrleansCanal Bank & Trust Co
Hibernia Bank & Trust Co.
Interstate Trust & Banking
Co
Metropolitan B ank
379,251
1,000,000
26,410,000 22,732,000 436,446,508
100,000
50,000
2,484,247
70,000
25,000
35,000
750
549,592
194,868
350,000
200,000
6,468,674
545,000
285,750
9,697,381
=5===
50,000
10,000
672,810
50,000
5,000
919,175
300,000
300,000
5,179,744
500,000
25,000
100,000
11,000
7,436,047
383,801
100,000
14,000
1,117,160
100,000
30,000
1,205,090
100,000
50,000
5,000
277,323
320,201
30,000
50,000
8,000
8,000
251,762
264,040
1,355,000
491,000
18,027,153
30,000
15,000
291,985
100,000
100,000
200,000
100,000
26,000
50,000
9,000
50,000
748,859
1,143,410
1,521,337
1,282,448
530,000
150,000
250,000
500,000
7,307,484
175,000
60,000
1,418,794
50,000
25,000
434,572
475,000
585,000
9,160,850
Surplus.
£$30,000
25,000
$20,000
2,000,000
1,500,000
Total resources.
$402,332
114,204
500,000 21,210,372
2,000,000 25,881,516
750,000
400,000
500,000
200,000
9,171,943
4,077,889
4,705,000
3,220,000
60,858,256
Maryland:
Baltimore500,000
Baltimore Commercial Bank,
1,000,000
Baltimore Trust Co
1,000,000
Maryland Trust Co.,
100,000
2,000,000
2,668,945
15,990,745
8,974,128
2,500,000
2,100,000
27,633,818
1,000,000
600,000
2,000,000 25,578,848
1,000,000 18,200,452
500,000 24,001,52a
1,500,000 23,933,840
300,000
5,787,080
7,000,000 150,784,124
1,500,000 36,288,917
Total.
Total.
8,092,397
Capital.
Massachusetts:
BostonAmerican Trust Co
Beacon Trust Co
Commonwealth Trust Co
International Trust C o . . .
Metropolitan Trust Co....
Old Colony Trust Co
State Street Trust Co
Cambridge—Charles River Trust
Co......
Fitchburg—Fitchburg Bank &
Trust Co
Holyoke—Hadley Falls Trust Co.
Newton—Newton Trust Co
Norwood—Norwood Trust C o . . .
Winchester—Winchester Trust
Co
Worcester—Worcester Bank &
Trust Co
Total.
Michigan:
AdrianAdrian State Savings Bank..
Commercial Savings Bank...
Lenawee County Savings
Bank
Albion—Commercial & Savings
Bank
Ann Arbor—State Savings Bank.
Charlotte—Eaton County Savings Bank
Dearborn—Dearborn State Bank"
DetroitFirst State Bank
Peninsular State Bank
Peoples State Bank
The Dime Savings Bank
Wayne County & Home
Savings Bank
,
Detroit Savings Bank
Central Savings Bank
American State Bank
,
FlintCitizens Commercial & Sav-
1,000,000
1,500,000
300,000
6,000,000
1,000,000
200,000
200,000
2,893,28$
500,000
500,000
400,000
200,000
250,000
250,000
400,000
4,935,072
6,283,988
4,889,053
2,563,580
100,000
25,000
731,236
1,250,000
500,000
24,123,410
14,550,000 15,425,000 330,994,403
120,000
110,000
55,000
30,000
1,975,276
1,139,850
150,000
50,000
2,194,213
75,000
150,000
40,000
150,000
798,485
2,976,070
100,000
50,000
20,000
50,000
925,622
1,478,614
500,000
150,000 8,275,489
2,500,000 1,000,000 27,270,333
2,500,000 2,500,000 77,761,759
1,000,000 1,000,000 32,769,194
3,000,000 3,000,000 53,681,743
750,000
750,000 19,524,470
500,000
100,000 11,962,743
500,000
185,130 7,243,617
150,000
Union Trust & Savings Bank
100,000
Industrial Savings Bank
250,000
Fremont—Old State Bank
50,000
Gladstone—State Savings Bank.
50,000
Grand Haven—Grand Haven
75,000
State Bank
Grand R a p i d s 400,000
Grand Rapids Savings Bank
Kent State Bank
500,000
Hart—Oceana County Savings
Bank
40,000
Highland Park—Highland Park
State Bank..
1,000,000
Hudson—Boies State Savings
Bank...
:
75,000
JacksonCentral State Bank
100,000
Jackson State Savings Bank.
100,000
Union Bank of Jackson
400,000
175,000
135,000
250,000
25,000
15,000
3,438,805
3,848,355
4,307,935
875,831
571,986
50,000
1,662,949
350,000
500,000
8,479,169
9,419,740
13,000
427,901
400,900 20,976,678
25,000
m
26,000
100,000
100,000
734,295
1,062,781
2,037,539
4,388,130
94
FEDERAL BESSEVE BULLETIN".
Michigan—Continued.
Lansing—Lansing State Savings
Bank
Lapeer—Lapeer Savings Bank...
Monroe—B. Dansard & Sons'
State Bank
Mount Pleasant—Exchange Savings B a n k . .
Niles-Niles City Bank
Petersburg—H. C. McLachlin &
Co. State Bank
Port Huron—St. Clair County
Savings Bank
Rochester—Kochester Savings
Bank
Romeo—Romeo Savings B a n k . .
Royal Oak—First Commercial
State Bank
...
Saugatuck—Fruit Growers State
Bank
Sault Ste. Marie—Sault Savings
Bank
St. Clair—Commercial & Savings
Bank
Total....
Minnesota:
MinneapolisBankers Trust & Savings
Bank.
. ..
German American Bank
St. Anthony Falls Bank
Wells-Dickey Trust Co
St. Paul—Peoples Bank
Spring Valley—Farmers State
Bank
Virginian-American Exchange
Bank
Winona—Merchants Bank of
Winona
Total......
Mississippi:
Summit—Union Bank of Pike...
Missouri:
Kansas C i t y Commerce Trust Co
Fidelity Trust Co
St. L o u i s Franklin Bank
German American
German Savings Institution.
International Bank of
Lafayette South Side Bank..
Mercantile Trust Co
Mississippi Valley Trust Co
St. Louis Union Bank.
Marshall—Wood & Huston Bank
Total
Montana:
Helena—Conrad Trust & Savings
Bank
Hingham—Hingham State Bank
Opheim—First State B a n k . .
Sidney—Yellowstone
Valley
Bank & Trust Co
Bozeman—Gallatin Trust & Savings Bank
Total
Nebraska:
Lewellen—Bank of Lewellen
Pender—Pender State Bank
Total
.New Jersey:
Bloomfield—Bloomfield Trust Co
Camden—Camden Safe Deposit
&TrustCo
Montclair—Bank of Montclair...
Passaio—
Passaic Trust & Safe
Deposit Co
Peoples Bank & Trust Co...
Total resources.
Capital.
Surplus.
$150,000
50,000
$100,000 $2,632,821
545,282
10,000
20,000 1,627,265
100,000
50,000
100,000
30,000
20,000
791,176
699,175
25,000
5,000
362,541
100,000
50,000
1,319,436
50,000
50,000
10,000
30,000
556,346
1,081,181
25,000
5,000
362,624
50,000
10,000
476,786
100,000
35,000
% 140,382
50,000
10,000
746,874
16,195,000 11,579,130 324,551,462
1,000,000
200,000
300,000
500,000
300,000
200,000
200,000
60,000
20,000
50,000
2,197,403
4,689,159
3,763,062
612,406
2,280,204
25,000
5,000
149,092
100,000
30,000
1,162,835
100,000
50,000
2,581,970
2,525,000
615,000
17,436,041
25,000
4,000
165,516
1,000,000
1,000,000
750,000 32,897,159
1,000,000 14,461,776
600,000
700,000 8,961,674
1,000,000
700,000 9,239,685
1,500,000 1,000,000 19,261,222
500,000
500,000 6,981,718
800,000
400,000 12,604,870
3,000,000 6,500,000 40,732,458
3,000,000 3,500,000 30,414,523
2,500,000 2,500,000 44,389,921
100,000
150,000 1,485,071
15,000,000 17,700,000 221,430,077
New Jersey—Continued.
Plainfield-Plainfield Trust Co..
Rahway—Rahway Trust Co
Westfield—Peoples Bank & Trust
Hoboken—Hudson "Trust" Go." of
WestHoboken....
Total
New York:
Batavia—The Bank of Genesee..
BrooklynBrooklyn Trust Co
Franklin Trust Co
Manufacturers Trust Co
Peoples Trust Co
,
BuffaloBuffalo Trust Co
Citizens Commercial Trust
Co
80,000
5,000
3,042,678
335,296
229,183
100,000
5,000
748,601
100,000
25,000
1,046,919
460,000
115,000
5,402,677
25,000
50,000
10,000
3,000
250,820
403,036
75,000
13,000
653,856
200,000
100,000
3,213,787
500,000
100,000
800,000
80,000
10,352,726
2,799,827
200,000
200,000
100,000
300,000
7,130,181
6,825,277
North Carolina:
New Bern—New Bern Banking
& Trust Co
North Dakota:
Enderlin—Enderlin State Bank..
Fargo—Northern Savings Bank..
Hettinger—Hettinger State Bank
Williston—Bank of Williston
Total
Total resources.
Capital.
Surplus.
$300,000
100,000
$200,000 $8,749,434
25,000
398! 277
100,000
1,000,000
80,000
2,005,718
1,000,000 21,466,091
2,700,000 2,685,000 62,941,318
100,000
100,000
1,151,907
1,500,000 2,898,481 40,270,926
1,000,000 1,000,000 24,823,842
1,000,000
300,000 15,031,812
1,000,000
29,443,301
1,000,000
500,000
9,624,217
500,000
1,250,000
18,196,063
1,250,000
New Y o r k Bankers Trust Co
, 11,250,000
Bank of America
1,500,000
Broadway Trust Co
1,500,000
Central Trust Co...
5,000,000
5,000,000
Columbia Trust Co
3,500,000
Corn Exchange Bank
6,000,000
Equitable Trust Co
1,000,000
Fidelity Trust Co
750,000
German American Bank
400,000
GermaniaBank of the City of.
Guaranty Trust Co
25,000,000
Lincoln Trust Co
1,000,000
Manhattan Co
2,050,000
Mercantile Trust & Deposit
co
: . . . . 1,000,000
Metropolitan Bank
, 2,000,000
Metropolitan Trust Co
2,000,000
New York Trust Co
3,000,000
Pacific Bank
500,000
Scandinavian Trust Co
1,000,000
Union Trust Co
3,000,000
U. S. Mortgage & Trust Co.... 2,000,000
W. R. Grace & Co.'s Bank...
500,000
United States Trust Co
2,000,000
Ogdensburgh—St.
Lawrence
Trust Co
100,000
Utica-Citizens Trust Co
500,000
w
Oneida County Trust Co
250,000
Utica Trust & Deposit Co
400,000
Watertown—Northern
New
York Trust Co
400,000
Oneida—Madison County Trust •
& Deposit Co
164,100
Rome—Rome Trust Co
300,000
Elmira—Chemung Canal Trust
Co
600,000
Syracuse—City Bank
500,000
Gloversville—Trust Co. of Fulton
County
200,000
Total
200,000
35,000
25,000
FEBRUARY 1 , 1 9 1 8 .
11,250,000
6,000,000
750,000
15,000,000
5,000,000
6,991,165
10,500,000
1,000,000
250,000
600,000
25,000,000
500,000
4,500,000
327,011,784
60,903,035
34,726,703
209,953,374
124,186,774
153,989,100
230,210,148
13,965,146
8,404,825
8,731,766
613,535,033
16,675,933
82,094,144
500,000
1,000,000
4,000,000
10,000,000
500,000
1,500,000
4,500,000
4,000,000
500,000
12,000,000
8,593,786
28,801,800
63,853,782
90,773,776
13,907,579
11,359,362
87,043,831
6,675,523
77,455,087
25,000
823,362
400,000
250,000
200,000
10,641,931
2,428,746
11,850,975
400,000
7,151,603
94,870
60,000
2,224,326
3,627,406
400,000
148,000
7,301,858
7,442,110
100,000
527,339
90,714,100 134,967,516 2,558,781,416
100,000
738,684
50,000
100,000
25,000
50,000
10,000
15,000
3,500
395,259
1,460,424
282,089
113,071
225,000
28,500
2,250,843
Ohio:
ClevelandCitizens Savings & Trust Co.. t,000,000 4,000,000 74,532,631
Cleveland Trust Co
1,500,000 2,500,000 55,121,784
Guardian Savings & Trust Co 1,000,000 3,000,000 52,731,355
Columbus—Citizens Trust &
Savings Bank
700,000
150,000 5,271,822
Hillsboro—Hillsboro Bank &
Savings Co
50,000
12,000
551,959
Massillon—Ohio Banking &
Trust Co
150,000
37,500 1,307,036
Newark—Newark Trust Co
200,000
125,000 2,655,417
Steubenville—Steubenville Bank
& Trust Co
125,000
50,000 1,713,78*
Capital.
Ohio—Continued.
Toledo-rGuardian Trust & Savings Bank
Youngstown—City Trust & Savings Bank.
3200,000
200,000
Surplus,
150,000
1,250,000
1,040,000
200,000
50,000
300,000
110,000
300,000
300,000
1,000,000 1,750,000
2,500,000 7,500,000
1,000,000 4,000,000
2,000,000 5,000,000
5,000,000 .6,000,000
2,000,000 1,000,000
1,500,000 34,500,000
200,000
200,000
2,600,000 2,600,000
200,000
150,000
Total.
18,550,000 73,410,000
Rhode Island:
Providence—Industrial Trust Co... 3,000,000 4,000,000
South Carolina:
Cheraw—Merchants & Farmers
Bank....
100,000
3,000
Hartsville—Bank of Hartsville...
50,000
50,000
Sumter—Peoples Bank of Sumter
100,000
19,400
Westminster—W e s t m i n s t e r
25,000
Bank
100,000
10,500
Woodruff—Bank of Woodruff....
40,700
390,700
Total.
South Dakota:
Sioux Falls—Sioux Falls Savings
Bank
200,000
Tennessee:
Memphis—Union & Planters
1,400,000
Bank & Trust Co
Texas:
Bonham—First State Bank
100,000
Bremond—First State Bank
50,000
Cuero—First State Bank & Trust
100,000
Co
Childress—Farmers & Mechanics
State Bank
50,000
DallasCentral State Bank
200,000
First State Bauk
250,000
DeKalb—First State Bank
25,000
Edgewood—Farmers & Merchants State Bank
35,000
25,000
Hamlin—First State Bank
Lubbock—Lubbock State Bank, 100,000
75,000
Memphis—Citizens State Bank..
Paris—Lamar State Bank &
150,000
Trust Co
25,000
Savoy—First State Bank
50,000
Wolfe City—First State Bank..
107,900
1,235,000
Total.
Virginia:
Chase City—Peoples Bank &
Trust Co
100,000
Harrisonburg—Peoples Bank of.. 150,000
Total resources.
$200,000 $4,224,961
.1,125,000 10,224,500
Total.
Oregon:
Enterprise—Enterprise
State
Bank
,
10,000
50,000
Hood River—Butler Banking Co. 100,000
20,000
North Portland—Live Stock
State Bank
10,000
100,000
Portland—Ladd & Tilton Bank.. 1,000,000 1,000,000
Total.
Pennsylvania:
Erie—Security Savings & Trust
Co
:..".
...
Lykens—Miners DepositBank...
New Castle—Lawrence Savings
& Trust Co
,
PhiladelphiaCommercial Trust Co
Girard Trust Co
Philadelphia Trust C o . . . . . . .
Penna. Co. for Insurances on
Lives and Granting Annuities
Fidelity Trust Co
PittsburghPittsburgh Trust Co
Union Trust Co
Oakland Savings & Trust Co.
Colonial Trust Co
Wilkes-Barre—The Dime Deposit Bank
95
FEDERAL BESEEVE BULLETIN.
FEBRUARY 1,1918.
23,000
4,752,034
Capital.
Virginia—Continued.
Norfolk—Citizens Bank of
Richmond—The Savings Bank
of
Total
202,862,783
Washington:
Bellingham—Northwestern State
Bank............
259,637
Cbehalis—Coftman-Dobson Bank
909,708
& Trust Co..
Colfax—First Savings & Trust
. 872,846
Co
Farmington—Bank of Farming21,427,913
ton
Hoquiam—Lumbermens Bank...
23,470,104
La Crosse—First State Bank.....
North Yakima—Yakima Valley
Bank
.
Odessa—Farmers and Merchants
3,989,335
Bank
679,897
Port Townsend — Merchants
Bank
3,183,907
Reardan—Farmers State Bank...
Rosalia—Bank of Rosalia
24,796,108
Seattle61,172,461
Metropolitan Bank
26,160,684
Dexter Horton Trust & Savings Co
Spokane—Spokane & Eastern
43,602,088
Trust Co
62,640,331
Tacoma—Fidelity Trust Co
Tekoa—Tekoa State Bank
21,067,764
Wilbur—State Bank of Wilbur..
137,516,868
4,185,658
Total
20,204,199
1,954,742 West Virginia:
Charleston—The Kanawha Valley Bank
411,144,042
Graiton—Grafton Banking &
TrustCo....
71,783,303
Total....
Wisconsin:
Clinton—Citizens Bank
338,007
Madison—Bank of Wisconsin
394,626
Milwaukee368,325
Badger StateBank
Marshall & Illsley Bank
453,433
American Exchange Bank...
256,874
Total
1,811,265
3,852,236
200,000 15,307,795
14,000
25,000
543,354
35,000
651,531
25,000
561,737
5,000
28,000
25,000
1,698,236
3,016,796
2,638,304
7,000
1,750
13,000
26,400
95,675
158,894
837,114
377,603
12,500
3,500
20,000
1,482,314
120,175
235,461
241,150
12,650,017
10,000
20,000
173,005
554,154
§600,000
Surplus.
Total resources.
$500,000 $5,896,002
200,000
200,000
2,198,163
1,050,000
730,000
8*821,324
100,000
45,000
1,474,055
150,000
100,000
1,493,790
50,000
15,000
369,711
25,000
100,000
60,000
5,000
13,000
8,000
254,214
760,618
715,454
100,000
15,000
1,269,710
25,000
2,500
247,374
75,000
25,000
25,000
25,000
7,500
5,000
744,277
639,855
308,777
200,000
100,000
3,559,260
400,000
100,000
7,725,758
1,000,000
500,000
30,000
50,000
200,000 20,078,867
300,000 6,645,716
435,848
12,000
919,175
5,000
2,915,000
958,000 47,642,459
. ,=
7,619,935
400,000
900,000
100,000
30,000
1,180,082
500,000
930,000
8,800,017
50,000
300,000
10,000
60,000
478,360
2,156,438
200,000
1,000,000
250,000
2,000
700,000
50,000
1,506,471
17,405,264
4,721,622
1,800,000
822,000
26,268,155
War Finance Corporation.
Secretary McAdoo on January 29 called
the following measure to the attention of the
Congress:
An Act To provide further for the national security and defense, and
for the purpose of assisting in the prosecution of the war to provide
credits for industries and enterprises in the United States necessary or
contributory to the prosecution of the war, and for other purposes.
Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled,
That for the purpose of affording financial assistance,
either directly or indirectly, to persons, firms, corporations,
and associations whose operations are necessary or contributory to the prosecution of the war, in cases where such
persons, firms, corporations, or associations shall be unable
to procure funds on reasonable or practicable terms from
the general public or through the regular banking channels, and for the purpose of regulating and controlling the
96
FEDERAL .RESERVE BULLETIN.
offering for sale or subscription of securities hereafter issued,- and for other purposes in aid of the prosecutionfof
the war, the Secretary of the Treasury, together with fou r
additional persons (who shall be the directors first ap"
pointed as hereinafter provided)lare hereby created|a
body corporate and politic in deed and in lawfby the
name, style, and title of the "War Finance Corporation"
(herein called the "corporation"), and shall have succession for a period of] ten years, provided that in no event
shall the corporation exercise any of the powers conferred
by this act, except such as are incidental to the successful
liquidation of its assets and the successful winding up its
affairs after six months after the termination of the war,
the date of such termination to be fixed by proclamation
of the President of the United States.
SEC. 2. The capital stock of the corporation shall be
$500,000,000, all of which shall be subscribed by the United
States of America, and such subscription shall, upon the
approval of the Secretary of the Treasury, be subject to
call upon the vote of three-fifths of the board of directors
of the corporation at such time or times as may be deemed
advisable; and there is hereby appropriated out of any
money in the Treasury, not otherwise appropriated, the
sum of $500,000,000, or so much thereof as may be necessary, for the purpose of making payment upon such subscription when and as called. Receipts for payments by
the United States of America for, or on account of, such
stock shall be issued by the corporation to the Secretary
of the Treasury, and shall be evidence of stock ownership.
SEC. 3. The management of the corporation shall be
vested in a board of directors, consisting of the Secretary
of the Treasury, who shall be chairman of the board, and
four other persons, to be appointed by the Secretary of
the Treasury, with the approval of the President of the
United States. Any director or directors so appointed
may be removed by the Secretary of the Treasury, with
the approval of the President, and vacancies, however
arising, may be filled by the Secretary of the Treasury,
with the approval of the President. Whenever a vacancy
shall occur among the directors so appointed, the person
appointed director to fill any such vacancy shall hold
office for the unexpired term of the member whose place
he is selected to fill. Three members of the board of directors shall constitute a quorum for the transaction of
business.
SEC. 4. The principal office of the corporation shall be
located in the District of Columbia, but there may be
established agencies or branch offices in any city or cities
of the United States under rules and regulations prescribed by the board of directors, with the approval of
the Secretary of the Treasury.
SEC. 5. The four directors of the corporation appointed
as hereinbefore provided shall devote their entire time to
the business of the corporation (except such part of their
time, if any, as shall be devoted to other governmental
business) and shall receive annual salaries, payable
monthly, the amount of which shall be fixed by the Sec-
FEBRUARY 1,1918.
retary of the Treasury, with the approval of the President of the United States, not, however, exceeding the
annual salary of the principal officer of an executive department of the United States. Any director receiving
from the United States any salary or compensation for
services shall not receive as salary from the corporation
any amount which, together with any salary or compensation received from the United States, would make the total
amount paid to him by the United States and by the corporation exceed the amount fixed as the annual salary of a
director of the corporation, as hereinbefore provided. Of
the four directors appointed, as hereinbefore provided, the
Secretary of the Treasury shall designate two to serve for
two years, and two for four years; and thereafter each
director so appointed shall serve for a term of four years.
No director or officer of the corporation shall continue to
be an officer, director, or trustee of any other corporation
or member of any firm of bankers; and, before entering
upon his duties each director and officer shall certify under
oath to the Secretary of the Treasury that he has complied
with this requirement, and shall also take an oath faith m
fully to discharge the duties of his office. But nothing con>
tained in this act or in the Federal Reserve Act shall be
construed to prevent the appointment of a member of the
Federal Reserve Board or of any other governmental administrative body or of a director of a Federal Reserve
Bank as a director of the corporation.
SEC. 6. The corporation shall be empowered and authorized:
(a) To adopt, alter, and use a corporate seal; to make
contracts; to purchase or lease and hold or dispose of such
real estate as may be necessary for the prosecution of its
business; to sue and be sued; complain and defend in any
court of law or equity, including courts of the United
States; to appoint, by its board of directors, and &K. the
compensation of such officers, employees, attorneys, and
agents as are not otherwise provided for in this act, to define
their duties, require bonds of them, and fix the penalties
thereof, and to dismiss at pleasure such officers, employees,
attorneys, and agents; and to prescribe, amend, and repeal, by its board of directors, subject to the approval of
the Secretary of the Treasury, by-laws regulating the manner in which its general business may be conducted and
the privileges granted to it by law may be exercised and
enjoyed, and prescribing the powers and duties of its
officers and agents.
(b) To make advances, upon such terms, not inconsistent herewith, as it may prescribe, for periods not exceeding five years from the respective dates of such
advances, (1) to any bank, banker, or trust company,
which has made, and which has outstanding, any loan or
loans to any person, firm, corporation, or association,
whose operations shall be necessary or contributory to the
prosecution of the war, and evidenced by a note or notes,
or (2) to any bank, banker, or trust company which has
rendered financial assistance, directly or indirectly, to
any such person, firm, corporation, or association by the
FEBRUARY 1,1918.
FEDERAL RESERVE BULLETIN.
purchase of its bonds or other obligations: Provided, That
advances so made by the corporation on the basis of any
such loan or loans shall not exceed 75 per cent of the face
value thereof: And provided, That any advances so made
by the corporation, in cases where such financial assistance shall have been rendered by the purchase of such
bonds or other obligations, shall not exceed 75 per cent of
the market value of such bonds or other obligations at the
time of such advance, as estimated and determined by
the board of directors of the corporation: And provided
further, That all such advances shall be made upon the
promissory note or notes of such bank, banker, or trust
company, secured by the notes, bonds, or other obligations, which are the basis of any such advance by the
corporation, together with all the securities, if any, which
such bank, banker, or trust company may hold as collateral
for such notes, bonds, or other obligations. The corporation shall, however, have power to make advances (a)
up to 100 per cent of the face value of any such loan or
loans made by any such bank, banker, or trust company
to any such person, firm, corporation, or association, or (h)
up to 100 per cent of the market value at the time of such
advances (as estimated and determined by the board of
directors of the corporation) of such bonds or other obligations by the purchase of which financial assistance shall
have been rendered to such person, firm, corporation, or
association, provided every such advance shall be secured
in the manner described in the preceding part of this
paragraph, and in addition thereto by collateral security,
to be furnished by the bank, banker, or trust company, of
such character as shall be prescribed by the board of
directors, with the approval of the Secretary of the Treasury, of a market value, at the time of such advance (as
estimated and determined by the board of directors of the
corporation), equal to at least 25 per cent of the amount
advanced by the corporation. The corporation shall
retain power to require additional collateral security at
any time.
(e) To make advances from time to time, upon such
terms, not inconsistent herewith, as it may prescribe, for
periods not exceeding 90 days, to any savings bank or
other banking institution which receives savings deposits,
on the promissory note or notes of the borrowing institution, whenever the corporation shall deem such advances
to be necessary or contributory to the prosecution of the
war or important to the public interest: Provided, That
such note or notes shall be secured by the pledge of securities of such character as shall be prescribed by the board
of directors of the corporation with the approval of the
Secretary of the Treasury, the market value of which, at
the time of such advance (as estimated and determined by
the board of directors of the corporation) shall be equal in
amount to at least 125 per cent of the amount of such
advance; And provided further, That the rate of interest
charged on any such advance shall not be less than one
per cent in excess of the rate of discount for 90-day com37528—18
5
97
mercial paper prevailing at the Federal Reserve BankTof
the district in which the borrowing institution is located.
The corporation shall retain power to require additional
collateral security at any time.
(d) In exceptional cases, to make advances directly to
any person, firm, corporation, or association, whose operations shall be necessary or contributory to the prosecution
of the war, for periods not exceeding five years from the
respective dates of such advances, upon such terms, and
upon the security of such bonds, notes, or other obligations,
and subject to such rules and regulations as may be prescribed by the board of directors of the corporation, with
the approval of the Secretary of the Treasury. The corporation shall retain power to require additional collateral
security at any time.
(e) To subscribe for, acquire and own, buy, sell, and
deal in bonds and obligations of the United States to such
extent as the Secretary of the Treasury may from time to
time determine.
(/) To issue and have outstanding at any one time its
notes or obligations in an amount aggregating not more
than eight times its paid-in capital, such notes or obligations to mature not less than one year nor more than
five years from the respective dates of issue, and to bear
such rate or rates of interest, and may be redeemable
before maturity at the option of the corporation as may
be determined by the board of directors, subject to the
approval of the Secretary of the Treasury. Such notes
or obligations shall have a first and paramount floating
charge on all tjie assets of the corporation,and the corporation shall not at any time mortgage or pledge any
of its assets. Such notes or obligations may be issued
at par in payment of any advances authorized by this
act, or, for any of the purposes of this act, may be offered
for sale publicly or to any individual, firm, or corporation
at such price or prices as the board of directors may determine, subject to the approval of the Secretary of the
Treasury. Such notes or obligations may be dealt in by
Federal reserve banks in the same manner and to the
same extent as bonds or notes of the United States not
bearing the circulation privilege, and Federal reserve
banks shall be authorized, subject to the regulations of
the Federal Reserve Board, to rediscount and purchase
paper secured by such notes or obligations in the same
manner and to the same extent, and at the same rate
or at such higher rate as the Federal Preserve Board may
approve, as they may purchase or rediscount paper,
secured by such bonds or notes of the United States,
under authority of the Federal Reserve Act. Any Federal reserve bank acquiring by purchase or rediscount
such paper secured by the notes or obligations of the
corporation may, with the approval of the Federal Reserve Board, use such paper so acquired for any purpose
for which it is authorized to use paper secured by such
bonds or notes of the United States: Provided, however,
That whenever Federal reserve notes are issued against
98
FEDERAL EESEEVE BULLETIN,
the security of such paper the Federal Reserve Board
may make a special interest charge on such notes, which,
in the discretion of the Federal Reserve Board, need not
be applicable to other Federal reserve notes which may
from time to time be issued and outstanding. All provisions of law not inconsistent herewith, in respect to the
purchase or rediscount by any Federal Reserve Bank of
paper secured by such bonds or notes of the United
States and in respect to Federal reserve notes issued
against the security of such paper, shall extend, in so
far as applicable, to the purchase or rediscount of paper
secured by the notes or obligations of the corporation and
to the Federal reserve notes issued against the security
of such paper. Nothing done or omitted by the corporation hereunder shall be construed as carrying the approval of the corporation or of the United States of the
legality, validity, worth, or security of any securities.
(g) To exercise by its board of directors, and its duly
authorized officers or agents, all powers specifically granted
by the provisions of this act and such incidental powers as
shall be necessary or proper to carry out the purposes of
this act: Provided, That the powers specifically enumerated
herein shall be deemed additional to, and not in limitation
of, any implied powers granted by this act: And provided
further, That it shall not exercise any of those powers or
perform any business except such as is incidental and necessarily preliminary to its organization until it has been
authorized by the President of the United States to commence business under the provisions of this act.
SEC. 7. For the purpose of assisting in the prosecution
of the war, and providing for the public security and
defense, through the restriction of unnecessary capital
expenditures, the corporation may, under rules and regulations to be prescribed by the corporation^ with the approval of the Secretary of the Treasury, investigate and
license, or refuse to license, the sale, or offering for sale or
for subscription, of securities, as hereinafter provided. No
person, firm, corporation, or association shall sell, or offer
£OT sale, or for subscription, any issue, or any part of any
issue, of securities hereafter issued, the par or face value
of which shall be in excess of $100,000, except in accordance with such rules and regulations as the corporation,
with the approval of the Secretary of the Treasury, shall
prescribe, nor, when required by such rules and regulations, except as permitted by licenses granted by the corporation. The corporation shall, however, grant licenses
for any such sale, or any such offer for sale or for subscription, which it shall determine to be consistent with the
foregoing purposes. Shares of stock of any corporation or
association without nominal or par value shall, for the purposes of this act, be deemed to be of the par value of $100
each. Any securities which upon the date of the approval
of this act are in the possession or control of, or have been
hypothecated by, the corporation, association, or obligor
issuing the same shall not be deemed to have been issued
prior to the date of the approval of this act, within the
meaning hereof. Nothing in this act shall be construed
FEBRUARY 1,1918.
to prohibit, or to require any license from the corporation
in respect of, any borrowing by any person, firm, corporation, or association in the ordinary course of business as
distinguished from borrowing for capital purposes. This
section shall not be construed to apply to any securities
issued by any railroad corporation the property of which
may be in the possession and control of the President of
the United States. This section shall not take effect until
rules and regulations shall have been prescribed by the
corporation, as hereinbefore provided, and may continue
in effect until the expiration of six months after the termination of the war, the date of such termination to be
determined by a proclamation of the President of the
United States.
SEC. 8. Whoever shall willfully violate any of the provisions of this act or of any license, order, rule, or regulation issued hereunder, or whoever shall willfully violate,
neglect, or refuse to comply with any such license, order,
rule, or regulation issued hereunder, shall upon conviction
in any court of the United States of competent jurisdiction,
be fined not more than $5,000, or, if a natural person,
imprisoned for not more than four years, or both; and any
officer, director, or agent, of any corporation or association,
or member of any firm, who shall knowingly participate
in any such violation, neglect, or refusal shall *be punished
by a like fine, imprisonment, or both.
SEC. 9. All net earnings of the corporation not required
for its operations shall be accumulated as a reserve fund
until such time as the corporation liquidates under the
terms of this act. Such reserve fund shall, upon direction
of the Secretary of the Treasury, be invested in bonds,
notes, or certificates of indebtedness of the United States,
or upon like direction may be deposited in member banks
of the Federal Reserve system, or may upon like direction
be deposited in any of the Federal Reserve Banks. The
Federal Reserve Banks are hereby authorized to act as
depositaries for and as fiscal agents of the corporation in
the general performance of the powers conferred by this
act. Beginning six months after the termination of the
war, the date of such termination to be fixed by a proclamation of the President of the United States, the directors
of the corporation shall proceed to liquidate its assets and
to wind up its affairs. Any balance remaining after the
payment of all its debts shall be paid to and become the
property of the United States, and thereupon the corporation shall be dissolved.
SEC. 10. Any and all notes and obligations issued by the
corporation shall be exempt, both as to principal and
interest, from all taxation now or hereafter imposed by
the United States, any State, or any of the possessions of
the United States, or by any local taxing authority, except
(a) estate or inheritance taxes, and (b) graduated additional income taxes, commonly known as surtaxes, and
excess-profits and war-profits taxes, now or hereafter
imposed by the United States, upon the income or profits
of individuals, partnerships, associations, or corporations.
The interest on an amount of such notes and obligations
FEBRUARY 1,1918.
FEDERAL RESERVE BULLETIN.
the principal of which does not exceed in the aggregate
$5,000 owned by any individual, partnership, association,
or corporation, shall be exempt from the taxes provided
for in subdivision (b) of this clause. The corporation,
including its franchise and the capital and reserve or surplus thereof, and the income derived therefrom, shall be
exempt from all taxation now or hereafter imposed by the
United States, any State, or any of the possessions of the
United States, or by any local taxing authority, except
that any real property of the corporation shall be subject
to State, county, or municipal taxes to the same extent,
according to its value, as other real property is taxed.
SEC. 11. If any clause, sentence, paragraph, or part of
this act shall, for any reason, be adjudged by any court of
competent jurisdiction to be invalid, or, in case any court
of competent jurisdiction shall adjudge to be invalid any
provisions hereof in respect of any class or classes of
securities, such judgment shall not affect, impair, or
invalidate the remainder of this act, but shall be confined
in its operation to the clause, sentence, paragraph, part,
or subject matter of this act directly involved in the controversy in which judgment shall have been rendered.
SEC. 12. The term securities, as used in this act, includes
stocks, bonds, notes, certificates of indebtedness, and
other obligations.
SEC. 13. The right to amend, alter, or repeal this act is
hereby expressly reserved.
EARNINGS AND EXPENSES OF THE
FEDERAL RESERVE BANKS.
Total earnings of the Federal Reserve Banks
for the calendar year 1917 were $15,438,858,
compared with $4,955,343 for the calendar
year 1918, while total current expenses were
$4,235,866, compared with $2,204,344 for the
previous year, Current expenses for the year
under review include $2,669,585 of expenses of
operation proper, $1,111,636—the cost, including postage, expressage, insurance, and
other expenses incident to the issue and
redemption of Federal Reserve notes and bank
notes, $299,823—depreciation of bank buildings, furniture, and equipment, and $154,824
the excess of the cost of operation of the
transit department over the total of service
charges collected by those Federal Reserve
Banks showing a deficit from operation of this
department. The total is exclusive of expenses
of the fiscal agent departments. These expenses are treated separately, being reimbursed
by the United States Treasury Department-
99
Net earnings of the banks, i. e., the excess of
earnings over current expenses, totaled
$11,202,992, or at the rate of 18.9 per cent on
an average aggregate paid-in capital for the
year of $59,260,000, compared with 9.8 per
cent for the first six months of 1917 and about
5 per cent for the calendar year 1916. It is
thus seen that the financial results of operation
were especially favorable during the second
half of the year, when the discount demands
upon the Federal Reserve Banks in connection
with the loan operations of the Government
caused a much larger employment of the banks7
funds than during the earlier portion of the
year. Three banks report net earnings for the
year in excess of 20 per cent on their average
paid-in capital; three other banks show net
earnings between 15 and 20 per cent, while the
remaining six banks show net earnings between
12 and 15 per cent. To the total net earnings
above shown should be added the net profits
carried over from 1916, $649,302, and miscellaneous adjustments in the profit and loss
account amounting to $10,529, making a total
of $11,862,823.
Deductions from this total, $1,633,914, comprise the cost of notes paid for but not yet
issued by the banks, the premium on United
States bonds, also special funds set aside to cover
depreciation on United States securities owned
by the banks, leaving $10,228,909 as the net
profits on December 31,1917. Over two-thirds
of this amount, or $6,801,726, represents the
amount of dividends paid to member banks
during the year, including certain small adjustments in the dividend account. The balance of
$3,427,183 was distributed as follows: $1,134,234
was pail by six banks as franchise tax to the
Government; an equal amount was carried by
these banks to surplus, while $1,158,715 was
carried to profit and loss by the other six banks.
Over 45 per cent of the total earnings for the
year, as against 20.7 per cent the year before,
was from bills discounted; 32.2 per cent, as
against 31.5 per cent from acceptances bought
in the open market; 15.3 per cent, as against
22.3 per cent from United States securities;
100
FEDEEAL BESEKVE BULLETIN.
about 3 per cent came from the sale of transfer
drafts, and the remainder from municipal
warrants, profits on United States securities
sold, penalties for deficient reserves, commissions, and sundry smaller profits.
Expenses of operation of the banks proper,
exclusive of their transit and fiscal agent departments, were $2,669,585, compared with
$1,684,501 for the calendar year 1916. Of
the total, about 28 per cent went as compensation to the clerical staff and 23.2 per cent
as salaries to bank officers. Less than 9 per
cent of the total operating expense is represented
by contributions of the banks for the support of
the Federal Reserve Board. Rent paid by all
banks, except Dallas, constitutes less than 7
per cent of the total expenses of operation, while
the cost of printing and stationery accounts for
about 5.4 per cent of these expenses. Other
large items of operating expense, in the order
of their importance, were postage, insurance,
directors7 fees and per diem allowances, compensation to special officers and watchmen, and
salaries not specified.
Current expenses are exclusive of $183,764
expended on furniture, fixtures, and vault
account. During the year the banks wrote off
FEBRUARY 1,1918.
this account a total of $305,421. At the end
of the year the furniture and fixtures account
was completely charged off by a number of
banks, leaving a balance of $133,396 at the
opening of 1918, representing the combined
furniture, fixtures, and vault account.
The Richmond bank owns a banking house
for its branch in Baltimore and ground upon
which to build in Richmond. Dallas owns a
banking house, while Atlanta and San Francisco own ground on which they propose to erect
bank buildings for their own use. The total
amount reported at the close of the year by
these four banks and Philadelphia under the
head of "Bank premises" is $707,611, compared with $368,222 at the beginning of the
year.
Disbursements of the transit departments,
not included in the banks' operating expenses,
totaled $844,305. As an offset against these
disbursements the banks received $704,670 of
service charges for handling items received for
collection. Aggregate deficits of $154,824 reported by 7 banks were included among the
current expenses of the banks, while excesses
of service charges appear among the earnings of
5 banks.
Earnings and expenses of each Federal Reserve Bank and of the system as a whole for the calendar year 1917.
EARNINGS.
Boston.
NewYork.
Philadelphia.
Cleveland.
Richmond. Atlanta.
Chicago.
St.
MinneLouis. apolis.
City.
San
Dallas. Francisco.
Total.
Billsdiscounted and bough I:
Bills discounted—Members and Federal ReS571,117$21,455,533
3370,359 §375,169 $418,629 $231,636
serve Banks
543 $347,871 $311,376 $438,831 $198,571 $292;982 $6,950,617
;
Acceptances bought in
market
502,397 1,843,325 474,653 496,711 201,008 102,311 394,340 180,601 148,531 171,112 149,006 308,596 4,972,591
Investments:
-,792 159,432 147,355
94,785 378,668 123,875 317,924 96,143 140,820 443,958 110,301 97,936 256.
United Statessecurities.
5,203
Municipal warrants
66,470 18,170 48,132
13,691 4,479 5,137
560 3,629
11,935 215,119
Profits realized on United
Statessaciirities
11,102
14,335 13,768 24,261 16/712 25,569 25,196
4,008 11,250 146,201
Transfers—Net earnings
339 14,022
17,134 170,634 57,920 45,983 45,570 34,027 64,363 450,100
108
Deficient reserve penalties,
6,105
18,565
6,878 17,844
including interest
13,527 12,223 14,968 4,468 37,396 12,968 18,222 194,526
38,538
Commissions received
45,476
Net service chargesreceived
in excess of transit de1,564 2,726
partment disbursements.
i,129
4,387
383
15,189
32,857
3,181 1,208 7,196
Sundry profits....
.
7,917
4,940
253
52
',436 1,112 4,202
81,050
Total earnings
1,198,008 4,848,2911,015,959 1,297,244 770,009 541,822 2,022,278 736,774
955,950 569,430 854,75515,438,858
101
FEDEBAL BESERVE BULLETIN.
FEBRUARY 1,1918.
and expenses of each Federal Reserve Bank and of the system as a whole for the calendar year 1917—Continued.
CURRENT EXPENSES.
Expenses of operation:
'Assessments account
expenses Federal Reserve Board
Federal Advisory Council (fees and traveling
Governors' conferences
(including traveling
Federal Reserve agents'
conferences (including
traveling expenses)...
SalariesBank officers
Clerical staff
Special officers and
watchmen
All other.
Directors7 fees
Per diem allowance
Trave ling expenses.
Officers' and clerks'
traveling expenses
LegaHees
Rent.
Taxes and fire insurance
Telephone....
Telegraph
Postage
Boston.
Philadelphia.
$21,226
$50,252 $22,057
Cleveland.
San
RichSt.
Minne- Kansas
mond. Atlanta. Chicago. Louis. apolis. City. Dallas. Francisco.
$25,783 $14,258 810,154
479
445
650
350
653
432
539
552
174
251
337
43,550
49,039
129,247
228,485
46,206
42,615
46,678
44,861
33,200
35,303
36,471
37,893
604
11,017
29,534
12,090
950
1,344
8,311
V361
4,35:
2,541
2,120
1,320
1,571
700
1,882
3,020
1,230
1,806
3,424
3,590
2,188
2,540
2,471
16'
110
4,060
1,010
711
168
$30,021 $12,733 $10,198 $13,118 $11,439 $16,56C
405
150
370
150
15C
5,081
432
711
625
665
398
944
5,928
208
215
37,782
38,773
41,051
39,940
56,657
2,782
2,981
1,575
815
1,132
434
160
2,372
465
1,139
2,400
3,825
1,323
13,669
15,353
15,948
178,628
1,184
870
585
3,166
8,424
104
2,313
2,371
3,203
6,960
5,645
24,274
12,229
89,925
61,112
1,871
3,851
1,185! 1,468
7,314 12,180
2,473
287
17,388
5 ~~
3,437
464
18,407
1,506
10,966
43,197
10,311
143,016
29,160
249,156
11!
243
63,761
85,865
10,289
5,138
2,050
590
961
48,688 37,101
55,236 31,926
2,12:
2,043
5,450
1,640
1,843
1,
816
3,740
940
1,506
1,419
1,062
3,975
2,540
5,313
1,227 1,219
2,750.
22,915 "i3,"077
361
1,500
5,660
S76
55,551
163
1,700
9,070
954
2,000
16,625
669
500
5,807
1,067
600
12,153
430
4,452
565
5,507
3,036
6,464
3,216
17,374
12,907
1,69
81
7,940
4,692
2,629
685
657
5,210
4,116
1,211
535
843
6,826
2,483
1,906
815
14,362
9,510
711
769
9,477
2,906
699
6,552
5,030
Insurance and premiums on fidelity bonds
Light, heat, and power.
Printing and stationery
Repairs and alterations.
All other expenses
13
2,803
325
1,470
U86
2,647
1,651
8,004
1,289
26,191
4,700
1,426
7,311
233
9,183
2,032
175
7,063
28
15,812
5,876
2,397
18,002
528
37,578
2,070
7,544
8,828
5,404
2,202
820
9,723
11,296
2,101
35,067
1,039
100,830
4,926
386
11,490
7,475
1,267
4,602
Total expenses of operation
193,531
704,278
163,955
68,954
343,765
70,340
91,256
58,903
15,010
1,887
3,069
3,626
Cost of Federal Reserve
notes issued, including
expressage, insurance ,etc.
Miscellaneous charges account note issues
Depreciation of furniture
and equipment
Depreciation of bank premises
Disbursements of transit
department in excess of
net service charges received
Total current expenses.
Net earnings for year 1917..
Per cent of average paid-in
capital
4,994
3,782
14/9741
66,283
22,120
285,715 1,129,336
912,293 3,718,955
17.4
28.2
262,084
753,875
8,256
14.1
7,416
725
$237,795
827
921
2,400
15,246
2,605
Total.
74
1,
8,850
810
565
8,838
1,234
620,392
746,827
47,111
46,157
46,230
15,120
20,019
194,941 141,095 146,748 _318,043 177,938 125,101 155,337 145,220 203,396 2,669,585
54,808
2,314
30,232 25,726
8,177
28,435
2,500
2,277
14,594
159,825
32,225
48,679
49,363
1,:
6^088
1,355
20,886
41,364
38,353
30,911
34,998 1,054,183
8,077
57,453
32,325
28,142
261,388
38,435
7,500
8,196
33,098
154,824
334,092 257,785 214,510 512,407 234,618 210,201 271,451 215,956 307,711 4,235,866
983,152 512,224 327,312 ,509,871 502; 158 418,137 884,499 353,474 547,044 .1,202,992
18.9
13.7
14.9
13.2
12.9
14.8
15.9
16,8
20.6
1 Credit.
102
FEBRUARY 1,1918.
FEDERAL RESERVE BULLETIN.
Profit and loss account of each Federal Reserve Bank and of the system as a whole for the calendar year 1917.
Boston.
Earnings Current expenses
Net earnings for
year
Profit and loss account
Jan. 1,1917
Miscellaneous adjustments in profit and
loss during year
Total
New
York.
Philadelphia.
Cleveland.
San
Minne- Kansas
St.
Richmond. Atlanta. Chicago. Louis. apolis. City. Dallas. Francisco.
Total.
$1,198,008 14,848,291 $1,015,959 $1,297,244 $770,009 $541,822 $2,022,278 $736,774 $628,338 $955,950 $569,430 $854,755 $15,438,858
285,715 1,129,336 262,084 334,092 257,785 214,510 512,407 234,618 210,201 271,451 215,956 307,711 4,235,866
912,293 3,718,955
753,875
163,064
89,966
11,597
963,152 512,224 327,312 1,509,871 502,156 418,137 684,499 353,474 547,044 11,202,992
94,797
11,664
10,120
10,654
923,890 3,892,673
Less:
Cost of Federal Reserve currency not
yet issued to bank
(including
expressage, insurance, etc.)
Premium on United States bonds
Reserved for depreciation on United
States bonds
138,267
205,880
Total deductions.
171,934
651,128
33,667
61,978
12,748 44,542
91,506
2,127
2-2,127
1125
41,903
15,417
649,302
10,529
843,841 1,057,949 523,888 337,432 1,573,976 514,904 460,552 775,880 395,377 562,461 11,862,823
445,248
14,320
209 470
50,000 24,909
209,470
50,000
39,229
43,001
42,508
159,515
75,462
1,407
21,657 117,970
1,407
77,603
280,119
578,744
* 21,657
445,854
91,000
609,316
91,000
1,633,914
NetprofitsDec. 31,1917.
751,956 3,241,545
843,841
848,479 473,888 298,203 1,293,857 514,904 438,895 657,910 393,970 471,461 10,228,909
Dividends paid
Dividends accrued
and paid on surrendered stock including miscellaneous
adjustments in dividend account
597,829 1,941,642
622,150
715,614 240,944 215,972
1,177
1,453
601,756 1,942,819
623,603
150,200 1,298,726
220,238
Total dividends
paid during
year
Profit and loss Dec. 31,
1917j after payment
of dividends
Distribution of profit
and loss:
Paid to Government account
franchise tax
Carried to surplus
account
Profit and loss Jan.
1,1918
Dividends paid to
3,927
554
860,058 284,566 363,876 360,236 187,744 394,490
2,201
286
16,665
716,168 240,944 218,203
862,259 284,566 363,895 364,503 188,234 394,776
6,801,726
132,311 232,944
80,000
431,598 230,338
75,000 293,407 205,736
2,231
19
75,100
649,363
116,472
40,000
215,799
37,500
75,100
649,363
116,472 40,000
215,799
37,500
12-31-17
12-31-17
220,238
6-30-17
6,785,121
132,311
6-30-17 12-31-17 12-31-17
4,267
490
76,685
293,407 205,736 76,685
230,338
12-31-17 12-31-16 12-31-17 6-30-17 6-30-17 12-31-16
3,427,183
1,134,234
1,134,234
1,158,715
i Credit.
* Amount paid to the Chicago Federal Reserve Bank in adjustments of dividends due to banks transferred from the Minneapolis to the Chicago
district.
3 Includes $6,500 for abrasion on gold coin.
103
FEDERAL RESERVE BULLETIN.
FEBRUARY 1,1918.
Transit department disbursements and net service charges of each Federal Reserve Bank and of the system as a whole for
the calendar year 1917.
DISBURSEMENTS.
New
Phila- Cleve- RichBoston. York.
delphia. land. mond. Atlanta.
Expenses of operation:
SalariesBank officers
$3,563 $3,000
Clerical staff
$51,854 $58,871 $55,134 39,950 29,254
All other
228
Officers' and clerks' traveling
213
expenses
631
201
Legal fees
Rent
1,630
1,200
2,232
7,041
6,590
204
35
65
Taxes and fire insurance
Telephone
57
55
53
1
Telegraph
32
61
345
Postage
19,157 22,294 17,939 12,626 10,659
480
Expressage
66
8,027 28,850 11,756
Insurance and. premiums on
• fidelity bonds..
880 1 391
488
894
Light, heat, and power
747
235
138
1,585
Printmg and stationery
5,790
2,271
5,350 10,942 3,780
Repairs and alterations
420
107
118
All other expenses, not specified. 1,938 17,746 4,652
2,819
886
Total expenses of operation.. 96,132 147,206
Depreciation of furniture and equipment
Total disbursements
Member banks
Other Federal Reserve Banks
Total service charges received.
Service charges paid other Federal
Reserve Banks
Service charges, net
Transit department disbursements
in excess of net service charges
received
$469
20,279 $35,042
$725
15,868 $23,799 $28,631
6
52
37
185
5,013
1,445
36
15
8,278
11
288
78
8,578
466
247
104
7,799
969
130
366
726
152
544
1,714
3,200
6 052
9,481
53,858
3,359
43,707
34,692
41,361
52,465
49,694
64,145
800,272
1,640
3,100
2,441
2,846
60,886
36,332
44,461
54,906
52,540
64,145
844,305
22,299
32,821
20,542
15,714
34,603
28,945
25,445
13,864
20,001
693,063
260,068
60,886
10,746
96,132 147,206 101,701
84,566
51,186
50,244
17,544
5,077
4,449
39,498
8,951
28*
24
127
312
9,353
9,769
2,301 14,262
1.045
1 320
33,251
392
834
1,075
152,947
67,188
240
5,033
2,688
26
750
4,924
19
48,498
48
1 098
$9,926
414,896
941
525
304
240
5,118
15,754
1,600
$2,169
27,292 $28,922
655
Total.
3,133
600
6,157
68,812
3,000
60
San
Francisco.
4,121
148
2,294
4,818
656
2,106
48
33
815
52
356
44,033
CHARGES.
93,507
16,048
60,964
26,017
43,028
22,592
30,042 110,243
25,091 17,529
146,033 109,555
86,670 128,271
12,139 17,762
Minne- Kansas
St.
Louis. apolis. City. Dallas.
2,750
96,883
SERVICE
Chicago.
86,981
65,620
55,133 127,772
71,293
53,363
50,317
54,390
33,865
953,131
10,933
87,876
65,110
80,923
29,974
79,581
17,009
69,972
10,047
55,573
7,166
47,967
65,322
62,450
32,235
39,058
2,773
50,590
3,607
46,710
1,467
52,923
2,818
31,047
248,461
704,670
8,256
66,283
22,120
14,594
14,387
2,277
11,564
12,726
16,129
8,196
33,098
189,635
1
Excess service charges.
Fiscal agent department disbursements of each Federal Reserve Bank, amounts reimbursed, and balances reimbursable by
the United States Treasury, to the end of the calendar year 1917.
New
Phila- CleveBoston. York.
delphia. land.
Richmond. Atlanta.
Chi-
Minne- Kansas
St.
Louis. apolis. City. Dallas.
San
Francisco.
Total.
Total disbursements to Dec. 31,
$294,499 $894,485 $186. 008 $237,581 $66,921 $70,380 $456,845 $191,516 $106,338 $114,172 $92,798 $376. 219 $3,087,762
1917
Amounts reimbursed by United
States Treasury to Dec. 31,1917. 151,288 534,135 85,975 98,333 23,700 24,686 169,417 66,667 52,211 27,722 27,793 128,615 1,390,542
Balances reimbursable
143,211 360,350 100,033 139,248
Cost of furniture
and
Total
Depreciation charged during calendar year ending
Dec. 31,1917
Balance Jan. 1,1918..
Bank premises
14,974
14,974
45,694 287,428 124,849
54,127
86,450
65,005 247,604 1,697,220
equipment, including vaults, also biink pre mises.
New
Phila- CleveBoston. York.
delphia. land.
Balance as reported Jan, 1,
1917
Additional purchases during calendar year ending
Dec. 31,1917
$14,974
43,221
RichMinne- Kansas
City.
mond. Atlanta. Chicago. St.Louis. apolis.
$15,410 $20,164 $12,000
$12,282 i $28,109 $28,689 $59,274 $41,961
FranDallas. San
cisco.
$37,164
Total.
^$255,053
25,822
25,479
6,641
4,116
23,538
14,691
12,583
9,007
$28,142
183,764
34,181 45,986
37,479
18,923
32,225
52,227
73,965
54,544
46,171
28,142
438,817
28,414
18,923
32,225
7,728
44,464
40,794
35,171
28,142
305,421
44,499
29,501
13,750
11,000
136,736
120,000
133,396
707,611
18,771
8,600
25,581
10,000
45,986
9,065
300,000
"140*875
i Refund of $195.50 deducted.
"
104
EEDEBAL BESEBVE BULLETIN.
FEBRUARY 1,1918.
Cost of unissued Federal Reserve notes.
San FranSt. Louis
Kansas
cisco (in(includCity
cluding
New
RichPhilaCleveing
(includ,
Seattle, Total,
Minnen
g
Boston. York. delphia. land. mond.
Chicago. Louis- apolis.
Dallas. Spokane,
ing
ville
Omaha
and
New
branch).
branch).
Portland
Orleans
branches).
branch).
Atlanta
(includ-
i
l
I
Balance as reported Jan. 1,
1917
$29,230 $235,599 $27,708 .$39,544 $9,355 $20,315 167,958 $19,763 -$16,295 128.599 $8,940
Additional cost during calendar year ending Dec.
73,391 553,414 43,144 51,712 49,548 49,401 134,868 45,767 39,001 62,588 32,132
31,1917 . . .
Total
102,621 789,013 70,852 91,256 58,903
Cost of Federal Reserve
notes charged to current
expenses during calendar
year ending Dec. 31,1917.. 102,621 789,013 70,340 91,256 58,903
Balance Jan. 1,1918..
512
1$503,306
$34,998 1,169,964
69,716 202,826
65,530 55,296
91,187 41,072i
34.998 1,673,270
69,128 202,826
49,363 42,381
91,187 30,911
34,998 1.632,927
10,161
40,343
i
I
588
16,167
12,915
1 Includes cost of Federal Reserve bank notes amounting to $983.82.
Earnings and current expenses, by months, for the calendar year 1917-j of each Federal Reserve Bank and the system as a whole.
EARNINGS.
Boston.
January
February..
March
April.......
May
June
July.
August.....
September.
October
November.
December..
New
York.
Phila- Cleve- Richdelphia. land. mond.
$53,987
43,978
45,168
53,134
53,867
$120,886
109,043 45,091
91,582 ,44,794
107,644 47,812
156,521 72,047
437,386 78,704
104,597 389,244 87,023
110,323 233,893 90,314
108,553 315,977 95,853
126,746 672,011 85,419
161,013 AI,033,209 122,933
247,1901L,180,895 197,575
Atlanta
(including
St. Minne- Kansas
New Chicago. Louis. apolis. City. Dallas. Francisco.
Orleans
branch).
$65,114 $44,,597 $47,800 $88,968 $31,400 $32,121 $29/731 $20,826 $49,982
52,713 35,436 26,584 68,040 31,283 31,310 31,311 24,678 34,413
51,150 37,496 21,128 63,591 33,052 31,094 34,889 22,943 31,090
54,016 44,603 23,870 68,272 35,947 34,082 34,955 28,886 38,725
28,271 89,149 43,806 43,184 42,511 34,747 52,476
66,220
73,082 58,850 28,873 136,407 47,167 39,952 72,814 33,119 59,645
26,861 192,247 53,281 49,422 88,498 36,581 62,530
78,742
107,090 65,074 33,380 160,522 55,826 60,826 97,756 45,805 75,312
117,730 68,800 44,330 170,449 66,900 70,234 92,918 53,031 80,282
131,396 69,299 73,964 247,193 91,293 58,689 106,034 79,296 91,571
193,726 85,379 85,520 336,516 96,824 83,836 166,516 88,510 119,352
306,265133;
"",557 101,241 399,360 147,269 87,459 158,017 100,625 159,377
Total.
533,880
507,977
571,946
738,468
155;451
235,888
138,121
285,057
832,911
573;334
218,830
Total
1,198,008 4,848,2911,015,959 1,297,244 765,622 541,822 2,020,714 734,048 622,209 955,950 569,047 854,75515,423,669
Net service charges in excess
of transit department dis4,387
2,726
bursements
1,564
6,129
383
15,189
Total earnings.,
1,198,008 4,848,2911,015,9591,297,244 770,009 541,822 2,022,278 736,774
955,950 569,430 854,75515,438,858
CURRENT EXPENSES.
January
February
March
April
May.....
June
July
August
September
October
November
December
1...
Total
Transit department disbursements in excess of
net service charges received
Total current expenses
$11,736
14; 088
14,908
15,667
14,656
18,226
20,785
22,077
24,428
29,841
30,815
60,232
$53,558 $11,354 $12,104 $10,395 $10,972 $18,968 $12,428 $7,705 $11,040 $10,022 $11,244 $181,526
61,972 15,548 15,153 8,147 11,424 23,194 12,183 9,892 11,085 9,271 11,416 203,373
66,284 15,340 15,207 8,672 10,882 25,960 11,391 8,995 12,537 9,407 10,984 210,567
61,834 15,703 18,178 8,779 10,631 31,639 11,677 11,889 12,374
11,076 219,441
58,375 15,145 20,215 10,483 10,566 34,175 15,228 11,166 13,078
11,262 223,337
65,532 19,226 23,006 77,994
9,717 30,258 14,495 11,288 11,789 25,627 33;481 340,639
73,825 13,530 20,731 11,867 12,753 60,844 16,194 13,378 15,934 10,921 17,132 287,894
90,565 18,098 17,048 10,567 13,232 36,949 15,961 12,608 18,415 13,579 20,259 289,358
96,832 23,618 24,934 12,425 25,957 43,408 19,883 18,533 26,535 24,952 20,612 362,117
136,796 28,240 28,244 11,337 29,502 51,845 33,690 24,655 32,187 23,017 26,830 456,184
157,874 25,456 33,251 16,171 23,787 59,441 34,034 17,977 31,980 17,810 24,994 473,590
139,606 38,706 91,427 70,948 42,810 95,726 37,454 62,115 66,301 52,368 75,323 833,016
277,4591,063,053 239,964 319,498257,785 212,233 512,407 234,618 210,201 263,255 215,956 274,613 4,081,042
8,256
285,7151,129,336
22,120
14,594
2,277
8,196
33,098
154,824
334,092 257,785 214,510 512,407 234,618 210,201 271,451 215,956 307,711 4,235,866
NOTE.—Increases in current expenses shown for the months of June and December are due to the inclusion of special charges account depreciation of furniture and equipment, also cost of Federal Reserve currency during these two months.
FEDEKAL KESEEVE BULLEHH.
FEBRUARY 1,1918.
Reducing Clerical Costs.
[James Stanley in the February " System."]
Small banks belonging to the Federal Reserve system rediscount a greater amount of
customers' paper in a number of separate pieces
than do some of the larger banks, which pass
only a few of their biggest and best customers'
notes to the nearest branch for rediscounting.
This means a large number of individual financial statements to be prepared and copied to go
with the notes rediscounted by the small bank.
To shorten the routine of getting these statements ready a North Dakota bank has all its
customer statement blanks printed in duplicate.
Whenever a customer submits a statement, he
automatically furnishes a carbon copy, too.
Thus, the original is sent on to the reserve branch
with the customer's note and the duplicate is
retained by the bank for its information.
GOLD SETTLEMENT FUND.
105
fer of the funds being largely for the use of the
Treasurer. During the last week of the period
the balances of the interior banks increased at
the expense of New York in anticipation of the
final payment on the second Liberty loan.
Deposits of gold, principally at New York,
Philadelphia, Chicago, and San Francisco,
account for the increase in the banks' fund of
47.1 millions during the four-week period,
against a loss of only 1.3 millions in the total
balances of the agents' holdings, resulting in a
net gain in the fund of 45.8 millions. The combined banks' and agents' balances on January
17, 1918, totaled $845,166,500, compared with
$272,320,000 in the fund January 1, 1917.
The total of the balances in the fund January
1, 1918, was $808,247,000, indicating a net
increase for the year 1917 of $535,927,000.
Shifting of credits in the fund resulted in
considerable gains in the balances of New York,
Boston, Philadelphia, San Francisco, and St.
Louis, Chicago and Cleveland balances indicating the largest decreases. Changes in the
ownership of gold in the fund amounted to
2.47 per cent of the obligations settled, as
against 2.27 per cent for the preceding fourweek period, and 1.64 per cent for the period
from May 20, 1915, to January 17, 1918.
Below are given figures showing changes in
the fund between December 20, 1917, and
January 17, 1918, inclusive:
Shifting of funds between New York and the
interior, including the concentration at New
York of the final installment payments on the
second Liberty loan and of amounts received
for certificates of indebtedness issued in anticipation of tax payments, account largely for
the continued heavy volume of clearings and
transfers effected through the gold-settlement
fund for the four weeks ending January 17, Amounts of clearings and transfers, Federal reserve hanks,
from Dec. %1', 1911', to Jan. 17, 1918, inclusive.
1918. Combined clearings and transfers from
December 20, 1917, to January 17, 1918, both
[In thousands of dollars.]
inclusive, totaled $2,980,359,000, averaging
Balances
Total
$745,089,750 per week, compared with a like
clearings.
adjusted. Transfers.
average of $904,916,750 for the preceding four
of—weeks, which witnessed the payment of the Settlement
Dec 27,1917
47,965
130,000
727,137
Jan.
3.
1918
48,534
36,400
536,945
second installment on the second Liberty loan.
43,419
63,500
690,242
Jan. 10,1918...
:....
50,432
72,500
723,635
Jan.
17,
1918
The balance to the credit of New York in the
2,677,959
190,350
302,400
Total
fund declined sharply in favor of the interior
158,500
1,950,822 .
142,385
since Jan. i, 1918
during the second week of the period. The fol- Total
24,319,200
Total for 1917
2,154,721 2,835,504.5
•5,633,966
Total
for
1916,
including
transfers.
lowing week, however, witnessed a complete Total for 1915, includ.Dg transfers. 1,052,649
reversal, and New York's balance gained 73.9
Total clean'n • and transfers. Mav 2 . ±ttl"», to Jan.
millions, 43.8 mi lions through transfers and
17,191°
. . . . . . . . . . . . . . xi,950, .41.5
settlement and 30.1 millions by deposits, trans- I
37528—18
6
106
FEDERAL EESEBVE BULLETIN.
FEBRUARY 1,1918.
Changes in ownership of gold.
[In thousands of dollars.]
Total to Dec. 20,1917.
Federal Reserve Bank of—
Decrease.
Increase.
From Dec 20,1917, to Jan. 17,1918,] nclusive.
Balance to
credit Dec.
20,1917,
plus net
deposits of
gold since
that date.
22,630
Boston
o
New York
Philadelphia
Cleveland
573,013
49,929
99,862
17,081
54,449
88,547
13,511
14,158
61,550.5
47,275.5
104,020
.
Atlanta
.
St Louis . . . . . . . .
Minneapolis
.
....
.
Dallas
San Francisco
573,013
Total
Balance
Jan. 17,
1918.
Decrease.
21,101
50,582
14,522
. 58,443.2
28,853
8,785
74,608
5,914.4
5,141
35,600.1
19,303.7
25,769
37,425
34,6S9
31,452
44,830.2
19,820
15,364
45,228
20,820.4
10,262
31,531.1
17,737.7
39,463
29,380
348,622.4
348,622.4
73,554
573,013
Increase.
15,893
13,613
9,033
4,069
1,566
Total changes from May
20, 1915, to Jan. 17,
1918.
Decrease.
16,324
io,930
588,906
38,954
68 859
86,249
8 048
61 028
59 167
28,417
19 279
57 481.5
45,709.5
117,714
6 579
ii,906
5,121
13,694
73,554
Increase.
588,908
588,906
Gold settlement fund—Summary of transactions from Dec. 20, 1917, to Jan. 17, 1918, inclusive.
[In thousands of dollars.]
Gold.
Federal Reserve Bank of-
Balance
last statement Dec.
20,1917.
Withdrawn.
14,101
6,002
12,837
60,930
23,407.2
9,970
79,280.2
10,842
10,328.5
36,971.7
17,590
19,264
Boston
New Y o r k . . . . .
Philadelphia...
Cleveland......
Richmond.
Atlanta
Chicago
St. Louis
..
Minneapolis...
Kansas City...
Dallas
San Francisco.
301,523.6
Total.
000
520
23, 930
5, 750
118.2
10, 290
37, 035
5, 500
6, 037.5
3, 004
1, 086.3
10, 400
105,671
Transfers.
Deposited.
Debit.
Credit.
9,000
45,100
25,615
3,263.2
5,564
9,105
32,362.8
572.4
850
1,632.4
2,800
16,905
15,000
108,400
5,000
37,000
14,000
20,500
146,000
9,000
30,000
152,769.8
50,000
3,900
23,000
26,000
7,500
39,500
5,000
5,000
60,000
302,400
302,400
Weekly statements, Dec. 20, 1917, to
Jan. 17,1918.
Total
debits.
Net
debits.
Total
credits.
Net
credits.
223,686
805,698
303,628
253,035
126,151
78,009
359,207
176,728
80,328
122,079
55,828
93,582
22,295
13,337
190,350 2,677,959 2,677,959
190,350
11,471
66,830
7,664
46,780
4,619
3,331
25,585
5,587
1,414
17,069
212,862
859,191
290,698
259,648
121,184
75,330
361,587
161,822
75,207
105,148
54,894
100,388
20,594
40,167
9,586
6,010
23,205
14,906
10,708
16,931
2,348
10,263
Jan. 17,
1918,'
balance
in fund
after
close of
business.
37,425
34,689
31,452
44,830.
19,820
15,364
45,228
20,820.4
10,262
31,531.1
17,737.7-
39,463
348,622.4
Federal Reserve agents1 fund—Summary of transactions from Dec. 20', 1917, to Jan. 17, 1918.
[In thousands of dollars.]
Federal Reserve agent at—
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chi cag o
Balance
last statement,
Dec. 20,
1917.
2,000
75,000
55,429
30,000
30,000
42,970
128,565
Gold
withdrawn.
Gold
deposited.
4,000
35,000
22,435
"5," 666°"
9,800
26,342.5
23,930
5,000
10,250
36,435
Balance
Jan. 17,
1918.
6,000
40,000
56,924
35,000
25,000
43,420
138,657.5
Federal Reserve agent at—
Balance
last statement,
Dec. 20,
1917.
Gold
withdrawn.
Gold
deposited.
Balance
Jan. 17,
1918.
St. Louis
Minneapolis..,
Kansas City...
Dallas
San Francisco.
27,405
16,500
39,860
8,474
41,621
2.4
1,000
500
1,000
5,615
5,500
6,000
3,000
900
10,400
32,902.6
21,500
42,350
8,374
46,406
Total....
497,824
106,694.9
105,415
496,544.1
107
FEDEKAL EESEKVE BULLETIN.
FEBRUARY 1,1918.
OPERATION OF THE FEDERAL RESERVE CLEARING SYSTEM, DEC. 16, 1917, TO JAN,
15, 1918.
!
Items drawn
Items drawn
handled
on banks in dis- Items drawn Items
by both bank
on banks in
trict outside
on banks in
and branches
Federal Reserve Federal Reserve other
districts
city (daily
(daily
city (daily
(daily average).
average).
(average).
average).
Number. Amount.
Total (exclusive
of items drawn
on Treasurer of
United States)
(daily average).
NumNumNum- Amount. NumAmount.
ber. Amount ber.
ber. Amount. ber.
72
Boston
373112,791,930 39,395 55,046,i,782
254 $7,144, 060
47,022 524,
95214,277, 245
52,792106, 695;960
58,546.249 43,178 33,872,1,466
New York.
32,
438,062
10,
62
47,591
18,043,655
21,335
3,394,645
lOi
817
Philadelphia..............
4,660,023 23,94011,482,44'
664 3' 005' 355
391 $839,849 27,745 19, 987,674
Cleveland
24,699 14, 824,130
4,124,583 21,265
" " " " 700, - 2,165 3,999,109
Richmond.
....
..}
12,010
2,089,110
2,279,985
1,582
512 237,928 15,704 7, 383,193
.,172
776,
Atlanta.
24,087
689
28,480
1,774
19,115 19,428
4,,283
Chicago...
!
205 1,277,238 *352 "230*834 15,338 12, 481,834
8,718,931 11,736
254,i,831
St. L o u i s . . . .
784,834
17,135
5,724,470 13,426
8,
288,1,911 1,046 1,771,513
Minneapolis....
. . . . .j
7,898,002 18,871
814 5,444,643 1, 5521 ,103,218 21,682 23, 958,556
512,i,693
Kansas City
!
16,393 9, 321,284.
565 1,012,167
2,351,4821 14,828
Dallas
957,', 635
466,376 4*911 * 990," 208 24,486 7, 730,497
504
3,778,818 16,046
San Francisco......'
495,L095
Totals:
418
49,342
51,487,
268,
7,718 3,402,035 359,067 268,522,943'
48,549
128,937,223
253,458
84,788,
Dec. 16 to Jan. 15
334,787 31.4,623,152:
7,678
,
1171,723,439 240,758 84,440, 761146,353 58,458,
Nov. 18 to Dec. 1 5 . . . 447678
210
45,393
53,089,
325,690
283,938,810;
47,574
166
66,552,773,232,723
64,296,
Oct. 16 to Nov. 1 5 . . .
. . . . . . 2 9 3 , 7 4 2 220,732,251
128,271,466 212,935'47,476, 204 40,216 44,984,
Sept. 16 to Oct; 1 5 . . .
621132,564
40
648,
.
.
.
.
.
.
2
5
1
,
0
6
1
182,303,483
306
100,331,694(182,191|41,323,
Aug. 16 to Sept. 15...
L . . . . . . . . 243,625 176,410,219
98,075,9191175,625:40,353, 2:8 31,273 37,981,
July-16 to Aug. 1 5 . . .
720
33,941
46,782,
!
.
.
.
.
255,039197,489,874!
76
109,722,258
182,622
41,004,
June 16 to July 1 5 . . .
!
...250,241174,236,7371
97,322,883 179,193 '38,599, 461 ,'33,150 38,314,
May 16 to June 15
! . . . . . . . . . 238,288 160,680,956!
87,370,859 171,093 38,473, 163 33,428 36,836,
Apr. 16 to May 15....
60,288,002 168,607132,666, 959,32,008 34,693,
!
231,777127,648,503
Mar. 16 to Apr. 1 5 . . .
NumNum- ber of
ber of nonmem- member
ber
banks banks
in
on
dispar
trict.
Numlist.
Amount.
ber.
Items drawn
on Treasurer of
United States
(daily average).
2,863 $2,084,095
403
651
20,009 9,167,627
2,233 1,393,038
628
375,106
542
76v
166,558
551
53;
478,774
. 762
402
1,883 1,109
5,160
761,730 4 479
2,255
117,167 V781
242
302,000 I'962
833
179,85.°
' t 633
484
1,449 4,204,691
249
343
812
549
284
313
2,235
987
1,041
1,527
208
1,1C6
38,13019,235,176 '7,909 '9,268
33,808 27,179,053 7,82:- 9,321
30,426 17,496,974 '7,826 9,210
26,797 13,518,566 ' 7,74: 9,052
23,492 11,006,515 7,718 8,934
19',533 9",
19533
" 701,569 7,68:- 8,837
19,10011, 637,899 7,686 8,805
8,'89
16,344 4, 414,508 7,65!
15,925 3, 597,865 7,834 8,926
12,582 2, 643,408 7,625 8,607
108
FEDERAL BESEBVE BULLETIN.
FEB&UAEY 1,1918.
INFORMAL RULINGS OF THE BOARD.
Below are reproduced letters sent out from the negotiable instruments law, you should
time to time over the signatures of the officers mature your 15-day notes, payable in those
or members of the Federal Reserve Board States and falling due on Saturday or Sunday,
as of Monday, charging 16 or 17 days' interest,
which contain information believed to be of as the case may be. The Board is of the opingeneral interest to Federal Reserve Banks and ion that if the collateral note on its face promember banks of the system:
j vides for payment 15 days after date, the law
| has been complied with, but if, by reason of
Maturity of Notes Due on Sunday or Legal Holidays. I the local law of a State you are obliged to
j collect this paper one or two days before its
(To a Federal Reserve Bank.)
apparent maturity or one or two days thereThe Board has considered your letter relating after, that you should charge interest accordto the time to be computed on member banks' ingly, for there is no question that you are
15-day collateral notes which fall due on Sat- entitled to interest after maturity up to date of
urday or Sunday and are consequently legally payment on any jjaper which you may have
matured on Monday in the States which have discounted and which is not paid promptly at
adopted the negotiable instruments law, which maturity. It is suggested, however, that you
provides that paper falling due on Sunday or a have banks use your own form of collateral
legal holiday is payable on the next succeeding notes as far as possible, making those notes
business day. It appears that all the States in payable at the Federal Reserve Bank of
district have the negotiable instruments Atlanta, in which case their maturity would
}rour
aw with the exception of Georgia, and that in be governed by the laws of Georgia.
Mississippi local law provides that paper falling
JANUARY 12, 1918.
due on Sunday or a holiday is payable on the
next preceding business day. In Georgia the
act of 1907 provides that paper falling due on Eligibility of a Note of an Acceptance House or Broker.
Sunday or a legal holiday is payable on the
(To a Federal Reserve Bank.)
next succeeding business day.
Keceipt
is
acknowledged of your letter of
In discounting any paper regardless of maturity, you should first consult your calendar January 18, in which you ask for a ruling of the
and time its actual maturity. For instance, if Board on the question whether the note of an
you should on January 26 discount a note run- acceptance house or broker, secured by acceptning for 90 days, you should, as far as notes ances eligible for purchase or rediscount at a
payable in Alabama, Georgia, and Florida are Federal Reserve Bank is itself eligible for reconcerned, mature this paper on April 27, as discount by a Federal Reserve Bank when
April 26 is a legal holiday in these States, and endorsed by a member bank.
In reply, you are advised that the Board has
you should figure discount for 91 days instead
of 90. If the paper is payable in Mississippi it consistently ruled that the eligibility of any
would legally mature on April 25, and you paper offered for rediscount must, in accord-)
should figure discount for 89 days. In the ance with the terms of the act, be determined j
other States of your district April 26 is not a by the use made of the proceeds of the loan (
legal holiday, and you should therefore mature represented by such paper. In the case you-such paper in those States on April 26 and submit, the note of the acceptance house or
figure discount for 90 days. As far as your broker could not be said to have been used for
15-day notes are concerned, you should, in the an industrial, agricultural, or commercial purcase of a note payable in Mississippi, falling pose, since the business of such acceptance
due on Sunday, mature it as of Saturday and house or broker is not such as to come within
charge 14 days' interest. In the case of a 15- any of these classifications. The fact that the
day note payable in Georgia, you should ma- note is secured by eligible paper is immaterial
ture it if due on Sunday as of Monday and if the proceeds are not used for one of the purcharge 16 days7 interest, and in Alabama, poses mentioned.
Tennessee, and the other States which have
JANUARY 21, 1918.
,1918.
Form of Draff*
(To a national bank.)
Receipt is acknowledged of your letter of
January 3 Inclosing blank form of draft used
by some of your cotton mills which, are purchasing cotton from merchants.
You ask whether there is any objection to
the form of draft submitted, and also ask to be
informed whether such a draft made payable
at sight and accepted by the drawee is negotiable if it contains the following provision:
"With interest at the rate of 6 per cent per
annum if payment is delayed."
In reply you are advisee!—
(a) That the Board knows of no objection-to
the use of the draft in the form submitted.
(6) If made payable at sight and accepted
by the drawee it should not be discounted as a
draft or bill of exchange since in. practically all
States a draft payable at sight becomes payable
without grace as soon as presented or exhibited
to the drawee. This being true, if the holder
presented it for acceptance instead of for payment the drawer and indorsers would probably
be released and the holder would have recourse
only against the acceptor as the party primarily liable. Such a draft would not be elifible for rediscount with a Federal Reserve
lank since it would not have a fixed maturity
of less than 90 days. To all intents and purposes it would be the promissory note of the
acceptor and his liability to the bank would be
subject to the limitations of section 5,200^ Revised Statutes,
(c) In the opinion of the Board the insertion
of the language suggested would not affect
the negotiability of the instrument if it is construed to mean that interest at the rate of 6
per cent per annum is to begin to run from date
of maturityo It is inadvisable, however, in any
case to insert language the meaning of which is
ambiguous^ and the clause suggested in your
letter is open to this criticism.
JANUARY 17,
1918.
Basis £©r Figuring Interest for Rediscount Transactions.
(To a Federal Reserve Bank.)
I am replying to your letter of January 28,
in which you inform the Board that, in connection with rediscounts with Federal Reserve
Banks, the point has been raised by one bank
that it is its habit tofigurediscounts on a basis
of 360 days to the year? while in your district
109-
FEDEBAL BESEKTE BULLETIN.-
37528—18-—7
they are figured on a basis of 365 days. The
bank claims, therefore, the difference from you.
You have asked the Board to give you a
ruling in this respect, and after a full discussion
of the question it has been decided to rule that
for rediscounts on transactions between Federal
Reserve Banks the basis of 365 days to the
year should be applied*
JANUAEY31?
1918.
Eligibility of Trade Acceptances for Rediscount
(To a corporation.)
The Board has given very careful consideration to your letter of November 15, 1917, in
which you request further information as to the
effect of the ruling made in the Board's letter of
October 30.
The Board's conception of the trade acceptance is that it is an instrument which carries
upon its face the evidence of the commercial
character of the transaction which gave it
birth. The finance paper of the -—•Corporation issued against drafts drawn by it on dealers and placed in-trust to secure such paper
issued by it in the shape of notes or certificates
gives no indication whatever as to the nature
of. the security, which may or may not be eligible paper. The Board does not concur
in
your opinion that the statute is satisfied u when
the proceeds of a note are used for a commercial
purpose, regardless of whether or not the maker
of the note is the purchaser of the goods or
whether in substance the maker of the note1
is extending credit to the actual purchaser/
etc., for if the maker of the note in the case cited
is extending credit to the actual purchaser, it
necessarily follows that the
• Corporation
is not itself the actual purchaser but is lending
its funds to the purchaser to pay the purchase
price. If such a transaction conforms to the
statute, then any bank could borrow money and
lend the proceeds of its note to a customer who
would use such proceeds for a commercial purpose, and then set up the claim that its own
note would thereby become eligible for rediscount.
It appears to the Board that the — — Corporation by issuing notes of this character is
really raising money for capital requirements
for similar transactions in the future, and that
the whole plan is in essence afinanceoperation
rather than a commercial transaction,
JANUARY 16,
1918.
110
FEDERAL RESEBVE BULLETOT*
FlBEUAET 1, 101S.
LAW DEPARTMENT.
TTie following opinions of counsel have been negotiates the instrument, it becomes by his
authorized for publication by the Board since indorsement a valid note or bill in the hands of
the holder.
the last edition of the Bulletin:
Or as expressed in another part of the text:
Bills Payable to the Order of the Drawee.
The * * * drawee may be designated
A bill made payable to the order of the drawee is not
negotiable until the drawee as payee has indorsed it. as payee, or the same person may be drawer,
When it has been accepted and indorsed by the drawee drawee, and aiso payee. In such cose the
It is a valid negotiable instrument In the hands of a third instrument has no inception as an obligation
party, and the drawer is not released, since the terms of until its indorsement and delivery by the
payee.
his order have been specifically complied witho
DECEMBER
13,
1917,
SIR: The accompanying letter from an officer of one of the Federal Reserve Banks has
been referred to this office for an opinion on
the questions involved. The writer states:
We have received several inquiries with respect to bills of exchange of the following
character, which are presented to us for purchase or rediscount. The bill is drawn payable to the order of the drawee, accepted and
indorsed by the latter, and then negotiated,
or negotiated by the drawer prior to acceptance
and indorsement by the drawee.
The question is whether under either of
these circumstances the drawer is discharged
from liability to a. subsequent holder, in case
the acceptor fails to pay at maturity.
Under section 8, subdivision 3, of the negotiable instruments law, an instrument payable
to order may be drawn payable to the order
of the drawee wiuhout destroying its negotiability. As stated in.the text in Norton on
Bills and Notes, fourth edition, page 86, however—
An instrument in the form of * * * a
bill where the payee and acceptor, or the
payee, drawee, and drawer are one and the
same person, is sufficient in form as * * *
a bill. But since a man can not contract with
himself, such a writing, unnegotiated, gives
rise to no obligation. If, however, the payee
It would seem clear, therefore, that an
instrument of the kind described would be
negotiable after the acceptor who is the payee
has indorsed it. It would not be negotiable
before it is indorsed by the payee, since the
holder could not transfer title without this.
Under the terms of the bill itself the order
of the drawer is to pay to the drawee or his
order. The drawee by accepting the bill
agrees to comply with its terms—that is, to
honor the order of the drawer. As he is
named as payeef he and he alone can fix the
necessary indorsement to pass title to the
bill. Answering specifically the questions of
the writer, therefore, it is the opinion of this
office—
(1) That a bill accepted by the drawee who
is named as payee and indorsed by the acceptor is a valid negotiable instrument in the
hands of a third party, and that the drawer is
not released, the terms of his order having
been specifically complied with.
(2) That a bill made payable to the drawee
can not be properly negotiated until the drawee
as the payee has indorsed it.
Respectfully,
IL C. ELLIOTT, Counsel.
To Hon. W. P. G. HARDING,
Governor Federal Reserve Board.
111
F1DEBAL BESEBYE BULLETIN
FlBEBABY 1, 1918*
SUMMARY OF BUSINESS CONDITIONS JAN. 23, 1917,
District No. 1—
Boston.
Genera! business*.. = . Active.
District No. 2—
New York.
District No. 3 Philadelphia.
Good; retail trade
quiet.
Crops;
Condition..
Outlook...
District No. 7—
Chicago*
District No. 8—
St. Louis.
G o o d . . . . . . . . . . . . . . . Generally good.
General business*.
Crops:
Condition........ . . . . . d o . . . . . . . . . . . . . . F a i r . . . . . . .
a c r e a g e Favorable..
Outlook.
it.
Industries of the dis- Necessary Indus- Busy,, as a rule.
trict.
• tries active.
Construction, build- Practically a t a | Dull............
ing, and engineerstandstill.
ing.
Foreign t r a d e . . . . . . .
Bank clearings*.„.«,.,. Decrease.
Increase........
Somewhat greater.
Small increase.....
Finn..............
Heavy; December shows increase.
Scarce and
inefficient.
Unsettled.........
Increase...........
Firm..............
Post-office receipts
Increased*
|
Scarcity and ex=
acting.
Improving........
War industries
active; other
production retarded.
Very little activity
Coal and transportation situation most acute.
District No. 9—
Minneapolis.
•Remarks.,
Noxnisgivings...... Generally
able.
District No. 10—
Kansas City,
Fair for the season G o o d . . . . . . . . . . . . .
Fair..............
More favorable...
Active...........
Active...........
Slow.............
D e c l i n i n g In
volume.
favor- .....da...
Large volume.....
Good demand at
6 per cent.
Railroad, irreeular; post office,
volume large.
In demand at high
wages.
Generally satisfactory.
General! activity
above normal for
period of year.
U p . . . . . . . . . . . . . . . . Nearly 50 per cent
increase.
Steady.....
Steady............
Money rates......... F i n n . . . . . . . . . . . . . . . Firm.........
Railroad, post office, Post-office receipts Increase in post- No change.
oiiice receipts.
normal.
and other receipts.
Settled with
Generally s a t i s - Labor scarce....... Good.......
Labor conditions
t h r e a t e ned
factory.
shortage ot farm
labor.
Outlook..
District No. 5—
Richmond.
Active, limited Large volume.....
only by scarcity
of supplies.
Good...
Inactive...........
.....doExtensive preparations anticipated.
Decreased output Running full......
by reason of
weather a n d
other conditions.
D e c r e a s e * <,oo = o = o = =Private building
negligible;
Government
work in large
volume.
Restricted.........
..do..
..do-
Industries ©I the dis- T u r n i n g ' m o r e Active, but hamtowards "Govern- pered by transtrict.
ment worko
portation a n d
fuel difficulties,
Construction, build- Little new eonstruc- At minimum.......
ing, and engineertionexeept on
ing*
Gov era merit
work*
Foreign trade*....... Heavy imports of Deereased export
raw material.
movement b e ' cause of traffic
congestion.
Bank'clearings....... Increased.......... Decrease,..........
Money rates . . . . . . . . . Firm ?4nd steady... Firm...............
Railroad, post office, Post office increased. Increased..........
r a i l r o a d deand other receipts.
Fair; considerable Demand greater
Labor conditions
than supply.
unrest.
Unsettled.......... Fair................
Outlook..............
Increasing demands Course of business
Remarks.
and i n d u s t r y
for capita! purduring remainder
poses andGovernof winter will dement financing,
pend largely on
scarcity of coal,
success of efforts
and transportato relieve transtion dimcultics
portation congesmaking business
tion and fuel
hard to conduct.
shortage
District No. 4—
Cleveland.
District No. 6—
Atlanta.
Fair.
Do.
D
Handicapped for
eoai: some labor
Below average*
Very limited.
Increase.
Firm.
Good.
Fair.
Unsettled, account
rapid readjustments.
District No. 11—
Dallas,
District No. 12—
San Francisco,
Good.........
Fair..........
Active.
Prospects bettered
by recent rains*
Very activ®.
Active.
Inactive; seasonal Decreasing,
for midwinter.
Large Increase.
Satisfactory....
31 percent increase Largely increasing.
over December,
1916.
Easy..
. . . . . . . . Firmer.
Railroad, increase; Increasing.
post office,
41 per cent increase over 1916.
G e n e r a l l y Unsettled,
satisfactory;
some uncmploymrnt in unskilled trades*
Promising.......... Favorable.,
For general increase of ail
business.
Prevalent e o a I Heavy snow and Deficient precipitation, is at
rain have imand car shortproved crop con- present an un»
age is serious*
ditions, especifavorable factor.
ally wheat; retail trade curtailed : general
business satisfactory.
FEDEBAL BESEBVE BXJLLETOT,
FEBKUAEf 1/1918.
;
GENERAL BUSINESS CONDITIONS.
There is given on the preceding page a summary of business conditions in the United
States by Federal Reserve districts. These reports are furnished by the Federal Reserve
Agents, who are the chairmen of the boards of
directors for the Federal Reserve Banks of the
several districts. Below are the detailed reports as of approximately January 23 :
DISTRICT NO. 1.—BOSTON.
The money market continues firm throughout the district. The general activity of
business, the high cost of raw materials and
other costs of production and the subscriptions to Government securities have taken up
the surplus funds of banks. Loans have been
restricted by banks, for the most part, in
taking care of their own customers. This has
kept them out of the market for outside paper.
While the January disbursements eased money
to some extent, banks are still charging practically 6 per cent for demand and time money
and are restricting commitments as far as
possible. Bankers acceptances, 90 days, 4J
per cent. Town notes, 6 months, 5i per cent.
The boot and shoe industry continues quiet
outside of Government orders? and retail trade
is confined to a considerable extent to overshoes, etc., needed for the inclement weathere
Early last week before the closing order
there was a better demand for cotton goods
than for some weeks. The inquiries for the
most part were for early deliveries starting
this side of April. There was a moderate
amount of business in print cloth with prices
firm,
The wool market is much quieter, although
prices remain firm. There is very little
trading between dealers, and it is still too
early to judge what effect the Government
order requiring wool importations to be offered
to the United States has made on the general
situation. This is especially true when it is
remembered that this country produces only
one-third to one-half of the wool consumed
and that it is absolutely dependent upon
importations from other countries of this
commodity in order to equip its soldiers.
The exchanges of the Boston Clearing House
for the week ending January 19, 1918, were
$309,856,871, compared with $239,287,699 for
the corresponding week last year and
$267,479,959 for the week ending January 12,
1918.
Building and engineering operations in New
England from January 1 to January 15, 1918,
amounted to $4,825,000, as compared with
$8,287,000 for the corresponding period of 1917.
The receipts of the Boston post office for
December, 1917, show an increase of
$111,710.24, or about 11 per cent more than
December, 1916. For the first 15 days of
January, 1918, receipts were about 16 percent,
or $63,918.76 more than for the corresponding
period of last year.
The Boston & Maine R. R. reports net operating income, after taxes, for November, 1917, as
$752,459 as compared with $1,079,945 for the
corresponding month of 1916. The N.- Y. N,
EL & EL Ro R. reports operating income, after
taxes, for November, 1917, as $1,469,202 as
compared with $2,077,456 for the same month
the previous year.
Loans and discounts of the Boston Clearing
House banks on January "19, 1918, amounted
to $482,062,000, as compared with $485,833,000
last month and $449,2~17,000 on January 20,
1917. Demand deposits on January 19, 1918,
amounted to $403,700,000 as compared with
$411,627,000 on December 15, 1917, and
$366,139,000 on January 20, 1917. Time
deposits on January 19, 1918, totaled
$22,254,000, as compared with $23,743 on
December 15, 1917, and $32,185,000 on January 20? 1917. The amount "Due to banks"
on January 19, 1918, was $130,745,000, as
compared with $121,753,000 on December
15, 1917.
While the volume of business of industries in
this district is very large, the scarcity of coal,
the railroad situation, the high cost of produetion, and the condition of the money market
FEBEUABY 1,1918.
FEDERAL BESEBVE BULLETIN.
are making it increasingly difficult to conduct
business.
New England is beginning to realize more
and more that it must get into a position to
meet the continually increasing burden placed
upon this section through war conditions; that
it must perfect and organize its business so as
to get the benefit of war orders, and to be prepared to meet subscriptions to future Liberty
Loans.
DISTRICT NO. 2—NEW YORK.
During the past month business and industry
in this district have been seriously hampered
by congestion of rail transportation and shortage of fuel. This has been intensified by extremely cold weather interfering with movement of barges in New York Harbor and delivery of coal from railroad terminals to New
York City, where the coal shortage has been
acute. Coal users of practically all classes have
lacked fuel and experienced serious inconvenience, and many ships have been held in harbor
because of lack of bunker coal, thus reducing
exports below those for the previous month.
Production has been much interfered with by
these conditions, many factories having been
closed for days or even weeks at a time, and
among the plants thus affected have been many
which manufacture products essential for war
purposes. The output of the hydroelectric
plants at Niagara Falls has been redistributed
among the several industries using the current,
and priority given to plants manufacturing
munitions or filling orders for the Government.
In the steel industry reduced production is reported, aggravated by inability to forward
promptly finished steel products. The general
demand for steel products is reported light, and
it is doubtful if increased demand could be
cared for, as the Government's direct and indirect requirements are utilizing almost the
entire capacity of the mills. Steel car manufacturers have only moderate orders on hand.
Building trades continue quiet and the demand
for building materials is lighter than for many
years.
113
The drug, dye, and chemical industries report
heavy demand, but have been much hampered
by difficulty in obtaining supplies, lack of fuel,
and difficulties of delivery; also by the extreme cold weather, as many of their products
are liable to damage by freezing.
Paper mills report softening prices. Conditions have been favorable for lumber and
pulp-wood operations, and a larger quantity has
been delivered to the streams than is usual at
this season of the year. Sugar refineries are
still short of raw sugar. Automobile manufacturers are very busy on Government orders,
though the recent auto show in New York
City stimulated other sales materially. Shoe
sales are light. Jewelry sales have decreased
somewhat, and the demand has turned from
high-priced to medium and low-priced articles.
Sales of watches have been extremely heavy,
and have depleted stocks.
Favorable conditions are reported in the tea
and coffee trades. Manufacturers and dealers
in men's clothing report fair sales and orders
being placed with wholesalers for the fall of
1918, several months in advance of the usual
time. The dry-goods trade also reports a fair
demand in spite of high prices.
Activity is at the highest level in the textile
manufacturing trades, with business the heaviest in their history both as to value and quantity. Manufacturers of hosiery, underwear,
and knit goods are running factories full time.
Cutlery manufacturers are rushed. Manufacturers of machinery are producing so heavily
for Government use that the necessity for curtailment of sales to general trade is not improbable, and throughout the industries working on war materials there is as high a degree
of activity as fuel and transportation facilities
permit.
Retail business in most parts of the district
is reported quiet, A larger proportion of purchases than usual are on a cash basis and efforts
at economy are general.
Collections are good in practically all lines
from which reports have been received.
11.4
.FEDERAL RESERVE BULLETIN.
After a year of almost continuous decline,
stock and bond prices took an upward turn
following the announcement of the President
on December 11 that the Government would
take control of the railroads and that Congress
would be urged to guarantee the earnings of
the roads upon the basis of their average earnings for the last three years. The upward
movement has continued through the first
weeks of January.
Call-money rates were firm at about 6 per
cent during the last weeks of December, eased
materially around the first of the year, ruling
at 4 per cent or lower up to January 14, and
have since displayed a firmer tendency, rising
to an average of around 6 per cent. Rates for
commercial paper, bankers' acceptances, and
time money have shown slight fluctuations,
and on January 21 were as follows: Commercial
paper, 5J per cent to 5 | per cent; bankers' acceptances, 3 | per cent to 4 per cent; time
money, 6 per cent. Recent issues of notes running from one to two years by corporations of
the highest standing have been placed at rates
above those quoted for commercial paper and
for time loans.
DISTRICT NO. 3—PHILADELPHIA.
The shutting down of industry throughout
the district for several days this month, for the
purpose of relieving the freight congestion and
expediting the distribution of coal, has disturbed general business here, the full effects of
which have not yet been ascertained. The industrial loss resulting from this shutdown,
however, is expected to be more than offset by
the benefit the district will experience through
the improvement of the railroad situation.
While the production of iron and steel for
some time has been curtailed by the scarcity of
coal, the general coal situation has been acute
only for the past few weeks. During that time
it has caused much suffering and possibly large
financial losses. Until the coal situation became serious there had been no unusual developments in the general business condition.
All branches of business directly connected
with the war are continually absorbing more
FEBRUARY 1,1018.
and more attention, more of the productive
capacity of the district, and are giving constant
employment to labor at high wages. Labor
conditions are unsatisfactory. Much complaint is made about the constant shifting of
workers and the loss incident to their continual
reemployment.
The building trade, with the exception of
Government work, is very inactive. This is
largely due to the inability to secure materials
and labor, and also to the fact that there is but
slight extension of industrial plants. Building
permits for 12 towns in this district, including
Philadelphia, for December, 1917, amounted to
$915,000 as compared with $6,157,000 in
December last year. There is a great need in a
number of these cities for houses to accommodate laborers who have recently been drawn
there. This is particularly true of this city,
because of the large shipbuilding operations
which are in progress in and near it, and there
is in contemplation the erection of between
7,000 and 8,000 houses to accommodate workmen.
Notwithstanding the dullness in the building
trade, the demand for hardware products has
been good. The Government has been taking
about 70 per cent of the goods in this line and
the prospects are that it will absorb a still
greater percentage of them. Prices are high.
Collections are reported not good or in keeping
with the otherwise favorable condition of the
trade.
The demand for chemicals and drugs has
been very active because of the urgent demands
of both the Government and civilian users.
The lack of shipping facilities has been felt
to a great extent and has cut down trade, and
in addition it has necessitated the carrying of
very large stocks by jobbers and retailers.
Crude drugs are high in price and show indications of going still higher, whereas the prices
of chemicals show a declining tendency. Collections are good. This industry in general has
benefited very considerably by the elimination
of German competition as a result of the war.
The demand for all kinds of groceries is very
good, but more especially for the staples, such
FEBRUARY I , 1918.
as flour, salt and sugar, of all of which there is
such a scarcity at this time. The supply of
sugar is gradually increasing "but the people
have in some cases been using molasses and
sirups as substitutes. Canned goods are on
hand in fairly large quantity. Prices have
remained fairly steady for the last two or three
weeks. There seems to be some difference of
opinion as to whether or not it would be wise
to have further price regulation of food, or continue the present plan of selling goods at the
usual profit above cost, irrespective of what the
goods can be sold for in the market..
The Government orders for knitted underwear for 1918 seem to have been taken care of.
In the hosiery and. underwear lines, factories
are running at approximately 75 per cent of
capacity, the output being affected by a shortage of labor and needles. Considerable difficulty is being experienced in securing sufficient
supplies of yarn, Manufacturers are shortening their credit terms to the jobbers and the
latter, in turn,, to the retailers. The demand
is good, stocks are low, and prices are constantly advancing. Collections are quite "good.
The Government regulations applying to imported wools have had a quieting effect on the
market, and some merchants have canceled
their foreign orders. The demand for wool is
so great, however, that it is considered doubtful
if the,regulations will have any great effect in
lowering prices.
The last installment of the second Liberty
loan was paid January 15. It is interesting to
note that only $26,000,000 remained unpaid on
that date, the payment of $86,000,000 of the
amount that could have been then payable
having been anticipated.
"This bank's loans and discounts made during
December amounted to $45,025,000, as compared with $31,478,000 in November and
$1,150,000 in December of 1916. The earnings
have increased rapidly and in December they
were at the rate of 30.2 per cent on the capital
stock.
The money market has been rather quiet, but
firm. Call money is quoted at 6 per cent and
choice commercial paper at 5 | to 6 per cent.
115
FEDEEAL RESERVE BULLETIN.
Financial indicators.
Percentage increase
or decrease compared with.—
\ Jan. 17,1918.
Previous
month.
Philadelphia banks:
I
Loans.......
....l$585.073,000
Deposits
i 643;338,000
Federal reserve bank:
j
Discounts and collateral l o a n s . . . 30,863,400
Cash reserve, per c e n t . . . . . . .
71
90-day discount rate, per cent
|
Ah,
Commercial paper, per c e n t . . . . . . —
5|
-0.5
+ 0.5
-11
+22
4h
5*
Dec, 1917. I S E
Bank clearings:
In P h i l a d e l p h i a . . . . . .
Elsewhere in district.
Last
year.
+ 9
— 4
+400
~ 9
1
Last
year.
!
$1,549,512,824
102,350,996
Total........
1,651,863,820
Port of Philadelphia:
40,158,000
Exports
4,446,000
Imports
740,020
Building permits in Philadelphia....
1,160,298
Post-office receipts in Philadelphia..
Commercial failures in district (per
163!
Bradstreet's)
-
+ 1
+ 1
+11
+ 1
+11
+24
+ 8
-57
+60
1
-34
-87
" +20
60
i Actual.
DISTRICT NO. 4—CLEVELAND.
Business at last realizes that it is face to face
with actual war conditions, and presents great
expansion in some directions and very severe
contraction in others—an increase in the manufacture of war goods and goods necessary to
carry on. the war,- and a corresponding decrease
in the manufacture of goods unnecessary to the
successful prosecution of the war.
Agriculture.—The extremely cold weather
and heavy snows have caused the feeding of
and caring for live stock to take the attention
of farmers, to the exclusion and delay of preparation for the spring crops. It is reported that
thousands of hogs, ready for market, are being
fed at a loss because cars can not be secured to
ship them to market. Traction cars and motor
trucks are being used in a limited way for this
purpose.
The weather has precluded husking, and
there is an unusually large amount of corn in
the field. Tests of the 1917 crop show a very
low percentage of germination, and it is thought
that seed corn will be very scarce and high
priced.
116
FEDEEAL BESEBVE BULLETIN.
Manufacturing.—Government demands and
regulations which cut in many different directions, the weather, coal shortage, and transportation difficulties, all tend to obscure the
real situation. A shortage of coke has compelled the, banking of a large number of furnaces, and consequently has heavily reduced
the production of pig iron. Some manufacturers who ordinarily furnish their own supply of
pig iron through their own organization are
compelled to buy from outsiders. This in its
turn has affected the steel business and its
manufactured products. However, it is thought
that, with a clean-up by the railroads, steel
manufacturing will be resumed on a scale that
will more than take care of Government needs
and will revive commercial demands.
The frozen condition of the rivers and the
lack of cars have seriously interfered with the
coal trade. Apparently the mines are in a
position to furnish more coal, and, with normal
weather and a means of marketing their product, they should do a much increased business.
The clay and brick industries, except in
isolated cases, report decreased output due to
delay in receiving materials and in delivery of
their products.
Owing to natural gas shortage, a number of
glass factories are practically idle and some
are said to be closed for the winter. In several
cases, on account of fuel conditions, gas producers have been installed. The window-glass
manufacturers are adversely affected by the
cessation of building operations.
Mercantile lines.—Jobbers of merchandise
supplying the country trade as a rule report
business good. The outlook is satisfactory,
and an active spring trade is predicted. In the
retail trade there has been some lessening in
activity, caused by weather conditions. However, seasonable articles are in brisk demand,
and, despite the appeal to save, there is a
distinct tendency to extravagance.
Collections. Except in very few instances,
collections are reported remarkably good. In
one particular case, however, one of the large
manufacturers of its line and a very large producer of war goods reports for the past month
FEBEUAET 1,1918.
the largest business, excluding war materials,
in its history, with collections disappointing
and notes offered at maturing dates. As a
general proposition, credits are closely watched.
Transportation.—The unusual weather, stopping navigation on the rivers and tying up cars
on sidings and in yards, has seriously and continuously added to the difficulties of the situation. Congestion was so severe in some localities in the district that there was practically
no freight movement for twenty-four hours at a
time, and passenger and street car service was
greatly delayed. There is a hopeful feeling
that, as a result of the "closing order," together with milder weather, the worst has been
experienced and gradual improvement may be
expected.
Labor.—A slowing up in the manufacture of
strictly " peace" goods, together with shutdowns in plants occasioned by transportation
difficulties, fuel shortage, etc., has somewhat
eased the demand for laborers in some localities, and in many instances men are reported
idle. In some cases the situation is acute to
the extent of paying idle men in order to hold
them for future requirements. Undoubtedly
with the clearing of freight congestion both
men and women workers will be in brisk demand, especially in munition centers.
Building operations.—Building
activities
have been greatly reduced, due to scarcity and
high prices of labor and materials and lack of
mortgage money. Where an increase is shown
over 1916 in the value of buildings being
erected, this is due almost wholly to the erection of manufacturing plants. Therefore, reports show that the building business is very
dull, and some manufacturers of products, such
as plumbing materials, etc., are remodeling
their shops to enable them to accept orders
from other sources.
Money.—The demand for money continues
brisk, and rates are firm. Outside the large
centers some idle funds are reported, but not in
as large amounts as usual at this time of year.
Generally, the situation is one of preparation
for the future. Only legitimate immediate
needs are considered, and funds for these appear
to be ample.
FEBRUARY 1,1918.
FEDERAL RESERVE BULLETIN.
DISTRICT NO. 5—RICHMOND.
There has been probably less slowing down
of business in this district than is usual at this
time of the year.
The coal deposits in this district are among
the most extensive, valuable, and important
in the country. Three of our greatest trunk
line coal roads derive a large portion of their
revenue from the hauling of coal from these
properties to harbors on the coast, particularly
to Norfolk and Newport News. Other railroad
lines assist in the general distribution of this
fuel to the hundreds of manufacturing plants
throughout the district. The chief difficulty
of providing fuel has been lack of transportation.
In West Virginia, 30,000 miners are reported
to be idle, large glass plants being shut down
for lack of fuel, and many of the men are seeking other employment. The contractors for
the United States powder plant at Crawford
City are reported to be employing many of
these men at 35 cents per hour. If transportation at the coal mines is provided, it is estimated that the output of coal could be increased from 25 per cent to 50 per cent over
the present volume.
Business conditions in some few lines have
been adversely affected, but this is due to
special conditions and is rather sporadic.
Business activity generally continues unabated. The situation may be generally
summarized in the words of one report, which
says: "Demand for goods is unprecedented,
brought about in a great degree by the prosperity of the farmer and the high wages of the
laboring man. When a laboring man gets $2
a day, he spends it, and when he gets $5 a day,
he spends it. To-day, the man who buys
tenderloin beefsteak is the laboring man, and
the man who is economizing is the millionaire.7'
Army and Navy requirements are creating
a scarcity in many lines of merchandise.
Collections are good. Scarcity of essential
factors, raw materials, transportation, and the
fuel and labor necessary to convert them into
finished products are the chief restraints
117
on the volume of business. Little effort
is being made to procure new business, as all
producers and manufacturers are finding ready
demand for all products at high prices. The
risk of operating at the present high, cost
of materials and labor is another factor which
is holding in check efforts for the expansion
of trade.
Weather conditions have been a notable
factor in all activities for the past month.
In Richmond, Va., since December 11, there
have been 14 snowfalls, aggregating a depth
of over 2\ feet. This is a fair indication
of conditions prevailing in the northern States
of the district. There have been considerable
snowfalls as far south as South Carolina.
There has naturally been little agricultural
activity in the district. While severe weather
has done some damage, in the northern portion of the district it has protected wheat to" a
considerable extent. In South Carolina a
considerable portion of the oat and wheat
crops have been destroyed, necessitating replanting. Reports from the valley of Virginia
indicate that a considerable proportion of
the old wheat crop is still being held. Chesapeake Bay and other inland waters have been
frozen, causing serious delays in shipping and
extensive damage to the oyster industry.
The most important question in the district,
and one which is already engaging widespread
attention and consideration, is that of the
planting and raising of this year's crops,
Farmers are reported "never so rich.7' The
demand for plows is unprecedented, but this
is also said to be true of automobiles.
Profitable returns from farming are improving farm labor conditions. A record
volume of fertilizers is in demand and at high
figures, which will represent an enormous
increase in crop expenses. The incentives
of 30-cent cotton and 30-cent tobacco are a
temptation to plant these crops to the limit.
Any considerable reaction in the price of these
commodities, which must be raised this year
on the high-cost basis referred to, might bring
a serious reaction in farming conditions.
118
EEDEEAL EESEBVE BULLETIN.
The shipment of cotton has been seriously
delayed at the ports due to lack of shipping
facilities,1!and if the present crusade for the
relief of fuel conditions also relieves this
embargo, it will materially improve conditions
in this direction. Considerable cotton is still
held in warehouses in the interior, quite a
little of it apparently still for account of
farmers.
Farm mortgages to a considerable amount
are reported to have been paid off. Considerable land has changed hands in the past few
months at high prices, creating a new volume
of obligations. Prosperity has improved credit
conditions, and many farmers who have been
dependent on merchants for crop supplies
obtained, however, at high prices, are seeking
bank accommodations to enable them to purchase supplies, particularly fertilizers, for cash.
A saving of $10, or even $15, per ton can be
made in this way, but high prices have added to
the volume of required bank accommodation,
and the demand in this direction is likely to be
heavy. These requirements demand close
scrutiny.
Eailroad returns under present conditions
form a very uncertain criterion, which is also
the case with regard to post-office receipts.
The latter show a largely increased volume, the
major portion of which, however, is due to
increased rates.
Private building is almost at a standstill,
very little work being done except for the
Government, and this has hardly made up the
deficit in ordinary home building.
Road building is receiving increased attention in the district generally, and particularly
in Virginia. The State legislature is considering the launching of a well-matured plan for
State highways, with feeders to be provided by
the counties and local committees. The parcelpost automobile routes contemplated by the
post-office authorities have been a matter of
keen interest. Bank deposits are reported
larger than ever, but profits have not been proportionate to the volume of business. The
recent calls and cash payments on account of
Government financing aggregated $37,000,000
FEBRUARY 1,1918.
since December 20, and have been reflected in
the loans of the Federal Reserve Bank, which
have for the first time reached the aggregate of
$50,000,000.
The mills of the district are reported in fine
shape and making money, and "the general
outlook to us for manufacturers, farmers, and
bankers is bright, though industries requiring
the movement of considerable tonnage over the
railroads are fearful of the conditions that may
exist within the next 60 or 90 days/ 7 To this
may be added by way of caution the vital
question of the cost of pitching this year's
crops, referred to above.
DISTRICT NO. 6—ATLANTA.
Due to the war necessities and regulations
the sudden readjustments in business have
been such during the past month as to curtail
manufacture in some of the essential lines.
While there is a feeling of confidence as to the
ultimate outcome of the war, demands for
subscription to Liberty bonds, war-savings
stamps and certificates, and the continued
demand for contributions for other movements
in connection with the war has forced a spirit
of general economy among the people, producing a clearer vision of war's necessities and
demands.
The district experienced the coldest weather
in 20 years, prevailing almost entirely throughout the month, considerably retarding business
and adding further handicap to all transportation. Indications are that there will be a
general decrease of acreage of all early truck
crops in Florida. While there was some fear
for the small grain crops, the cold weather
does not appear to have done any considerable
damage; in fact the heavy snows appear to be a
benefit to the wheat and make the prospects
for a good crop favorable. Live stock does
no.t appear to have suffered to any extent.
The coal situation was the most important
feature in January activities. The increased
activities over previous years, coupled with a
shortage of coal, the lack of railroad facilities,
and unheard-of cold weather created an extraordinary demand for coal, the need of which
has been sorely felt by many people.
FEDEKAL RESERVE BULLETIN.
FEBRUARY 1,1918.
Railroad conditions have grown worse from
day to da}^, and it is hoped that with Government control some relief will be found. The
opinion prevails in this section that the blocked
conditions of the railroads are largely due to
their endeavoring to haul too much tonage
per train, resulting in constant break-downs,
delays and the necessity of a great deal of
rolling stock in the repair shops. The laws
relative to a limitation of 16 hours with
corresponding rest also add to present difficulties. It is often necessary that trains be sidetracked to wait either the arrival of a new
crew, or until the original crew has had their
allotted time for rest.
The total production of cotton, corn, and
potatoes in the States within this district
during 1917 was estimated by the Department
of Agriculture as follows:
Cotton, 1917.
Georgia
Florida
Tennessee
Alabama
Mississippi
Louisiana
Bales.
1,820,000
40,000
206.000
505,000
895,000
615,000
Cotton, 1916.
Florida
Tennessee
Alabama
Mississippi
Louisiana
Bales.
1,829,039
41,449
382,422
533,402
811,794
443,182
Corn, 1917. Potatoes,1917.
Bushels.
72,000,000
13,875,000
42,246,000
111,150,000
77,200,000
84,050,000
Bushels.
1,596,000
2,275,000
1,600,000
4,888,000
2,952,000
1,092,000
Corn, 1916. Potatoes,1916.
Bushels.
62,000,000
12,300,000
44,814,000
78,000,000
47,812,000
47,600,000
Bushels.
900,000
1,332,000
1,625,000
2,952,000
1,800,000
780,000
Tobacco trade in the Tennessee district has
been rather quiet, due to the holidays and bad
weather conditions, preventing delivery by
farmers. The export tobacco stored in warehouses is owned largely by the representatives
of the British and Italian Governments, and
no shipments of importance have been made
recently on account of shortage of car and
ocean steamship space.
The year 1917 showed an increase in bank
clearings at New Orleans of $582,850,716 on
the year 1916; Chattanooga an increase of
$54,031,407; Atlanta an increase of $681,496,996; Birmingham a gain of $39,880,110. The
119
postal receipts throughout the district also
showed a large increase, some of which, of
course, is due to increase in population and
large Army camps and to the high rates of
postage. The campaign of the sale of warsavings stamps and certificates is progressing
nicely throughout the district. Good reports
are being received from the various headquarters, and it is expected that the sales will come
up to expectations.
Labor continues scarce, with increased wages.
Most of the cotton has been marketed, the
extraordinary prices bringing out the major
portion of the staple held. With continued
high prices for cotton a large crop is looked
for in 1918, notwithstanding increased diversification.
The district enjoyed an unusual holiday
trade. While prices were high, the general
public seemed to raise no objection. Regardless of the war, buyers asked for commodities
as usual. Naturally the volume of business was
greater than in past years, as in many cases
prices were double on certain wares. Aside
from the increased prices, however, there was a
substantial increase in sales.
There has been a growing scarcity of flour,
and the wheat supply on hand is reported as
getting low. Some of the mills are reported
as shut down on account of shortage of wheat;
other mills are running about half time. The
mills are becoming adjusted to the new milling
regulations, which require the making of a
barrel of flour out of 4 bushels and 24 pounds
of wheat.
With production in all lines more and more
confined to war's necessities, with the Government's demands for raw materials of all kinds,
principally lumber, builders and real estate
dealers see nothing strange in the fact that
building operations fall off.
The general business outlook in the section
is only fair, due to unsettled conditions; but
business is growing used to the rapid readjustments, and there is no reason for fear any obstruction unless overtaken by some unforeseen
disaster. The demand for coal, iron, and lum-
120
FEDEKAL liESEKVE BULLETIN.
FEBRUARY 1,
1918.
Quiet reigns in the investment market, the
ber is still greatly in excess of the supply.
Great activity continues at the various ship- chief subject of interest being prospective
Government financing. One authority believes
building plants on the coast and Gulf
there
is a great deal of investment money
DISTRICT NO. 7—CHICAGO.
awaiting higher rates for miscellaneous securiIt is gradually becoming possible to discern ties, which, it is thought, will advance proa distinct line of demarkation between indus- portionately should there be an increase in the
tries that are essential and those that are not rate of Liberty bonds. There is a consistent,
essential, This district, like the whole country, though small, demand for municipal securities.
is on a war basis. Conservation orders, fixa- Short-time obligations of public utilities and
tion of maximum prices, and most recently large industrials appear to have a ready sale.
the fuel order of Administrator Garfield, bring
Bank deposits are high throughout the dispersonally to every man and woman a vivid trict. Rates hold firm and no softening is
realization that this war is a serious business, anticipated. While banks are in comfortable
requiring the coordination of all resources and position, there is some discrimination between
the cooperation of every citizen. This is re- one borrower and another, the legitimate
flected in the diminishing volume of business borrower finding no difficulty in securing acin luxuries.
commodation, however.
Heavy snowfall in this district completely
A heavy snow blanket provides protection
paralyzed transportation for practically two for winter wheat. Some bad freezes last fall
days and greatly aggravated the already serious in certain localities found the ground bare and
shortage of coal at industrial centers and did damage estimated &t as high as 10 per cent.
elsewhere.
No improvement is reported in the corn crop,
The coal situation had been a cause of which was universally soft. Snow blockade is
anxiety for months. Stocks were low and seriously hampering the marketing of last year's
many large consumers were able to maintain crops.
only small supplies sufficient for a few days.
In the agricultural implement line shortage
With the complete tie-up of the railroads even of transportation, materials, and fuel is acute,
these surpluses were wiped out and this district and this will render it a difficult matter to fill
found itself in a coal famine. Radical steps the orders which are being received in good
had to be taken and the recent edict of the fuel quantity. Considering the season, receivables
administrator forbidding the use of coal for a are in good condition, no particular difficulty
period of days, except by essential enterprises, being experienced in this direction. The labor
should furnish a means of replenishing the de- situation is reported unsatisfactory in some
pleted coal bunkers.
departments of the industry.
Necessary industries of the district have in
In many cases automobile manufacturers
general been working to capacity, meeting the have turned to Government work. This foreshortage of fuel, material, and transportation shadows a limitation of the output of pleasure
with the means at hand, though not a few cars.
have been compelled to close.
As reported above, the scarcity of coal had
There continues to be a scarcity of labor. been aggravated by the temporary collapse of
Wages are the highest ever paid. The demand transportation from January 6 to 11, but the
is so great in some localities that it has been heavy snowfall, in addition to preventing the
found impossible to house the necessary men, moving of cars, has made the operation even of
though otherwise they could be used to ad- the mines impossible. Hence, it is said, provantage. Very little wage difficulty is ex- duction will be very light for several days, and
perienced.
mines in Illinois and Indiana will have pro-
FEBRUARY 1,1918.
FEDERAL BESEBVE BULLETIN.
duced less coal in January of this year than for
any like period for many years.
As there has been no distillation of beverage
spirits since September 8, 1917, distillers are
disposing of accumulated stocks and at high
prices in fair volume. The use of molasses in
the manufacture of commercial alcohol has
supplanted corn; hence distillers can not turn
to this business. Such concerns are either
liquidating, which at present prices is possible
without material loss, or are branching into
chemical manufacture, corn products, cattle
feeding, and the like. Maltsters suffer radical
reduction in volume due to shipping restrictions
and railroad embargo. They report a number
of inquiries for their product, which would forecast a satisfactory resumption of business when
restrictions have been removed.
Dry-goods houses report a good volume of
sales, the preference running to necessities.
Seasonable weather had its usual good effect
on buying. Speculative purchases are still a
factor in volume. Collections are fair to good.
This is the semiannual sale period for furniture manufacturers. Buyers appear in the
market as in past sales and volume is expected
to be close to normal. Retailers complain
somewhat about holiday business. The principal difficulty among manufacturers has been
with labor and transportation. Collections are
reported very good.
Conditions in the grain business are described as extremely unsatisfactory. For some
time receipts at terminals had been light, and
when the bad weather came, blockading or
seriously hampering car movement, grain receipts were reduced 'to' a minimum. The result is that farmers hold enormous amounts of
grain which they are unable to market, while
different localities throughout the country are
suffering.
Wholesale grocers, looking back on the past
year's business, report general satisfaction both
with tonnage and volume, and losses have been
held to the usual fractional percentage. They
report that adjustments have been made in line
with governmental restrictions. There is some
uncertainty as to. the future but no misgivings.
121
It is expected that buying power will continue
strong, due to the large wages of labor. For
the present, on account of weather conditions,
collections will probably fall short of normal.
Prospects for a good spring business in the
hardware line are reported good. There are
expressions of satisfaction with regard to
present business, and though salesmen have
been snowbound for the past two weeks and
shipments delayed, this is, of course, only
temporary. Collections are good.
Jewelry houses succeeded in maintaining
sales for December at the normal for the corresponding month in the prewar years, but ran
considerably behind the 1916 and 1915 figures.
Thus far in January this retrogression has continued at an increased percentage. Collections
are said to be very good. Manufacturers are
unable to keep abreast of the demand for military wrist watches, but business in other directions is not at all brisk.
The leather industry is active where.Government orders have been placed, but quiet in
civilian lines. As to all other industries, railroad embargoes are the chief concern. Collections are good, labor satisfied, and the general
situation satisfactory.
Prices in the live-stock market have eased off
somewhat. Railroad situation has reduced
receipts at yards temporarily. Quality of
stock is good. Farmers have their farms well
stocked with beef cattle. The number of young
hogs is reported large and it is anticipated that
supply during spring and summer will be plentiful. Foreign demand, of course, continues
strong, with the usual obstructions, scarcity of
rail and water transportation.
Lumber for building is not in demand to an
appreciable extent. The Government is taking
some material for use in cantonments and panel
work for aeroplane manufacture. Retail business is at a standstill. Few inquiries are received from railroads and car manufacturers.
Mail-order houses report their usual increase
in volume for December, 1917, business over
the same period in 1916. It is expected bad
weather will affect collections for a time.
122
FEDERAL BESERVE BULLETIN.
Piano orders are fair in number, but show a
decided drop from last year. Dealers are not
pessimistic, but look for favorable conditions in
their line. Output has been reduced or hampered by scarcity of raw materials and by uncertainty in railroad situation. Labor is still
in short supply. Collections are satisfactory.
No change is reported in the shipbuilding industry, production being pushed to the limit
established by the scarcity of essential factors.
War orders are, of course, the life of the steel
business, though domestic consumers are beginning to buy more freely. Demand is expected to continue indefinitely, with an active
market for all products.
I t is estimated that about half the woolen
and worsted factories in the country are employed at Government* work. This quite
logically has tended to advance prices materially for civilians. Mills are offering to wholesalers for future sale the highest priced fabrics
ever known, and these prices are being met, as
purchasing power is strong due to high salaries
and wages. The usual inventory sale is not so
much in evidence this year, retailers being unwilling to sacrifice goods which they can only
replace at higher figures. Some relief for the
serious shortage of wool stocks is promised by
the release to this country of wool controlled by
the English Government.
Clearings in Chicago for the first 16 business
days of January were $1,303,000,000, being
$32,000,000 less than for the corresponding 16
business days in January, 1917. Clearings
reported by 23 cities in the district outside of
Chicago amounted to $288,000,000 for the
first 15 days of January, 1918, as compared
with $290,000,000 for the first 15 days of
January, 1917. Deposits in the 12 central
reserve city member banks in Chicago were
$807,000,000 at the close of business January
21, 1918, and loans were $614,000,000. Deposits show a decrease of approximately
$38,000,000 over last month and loans an increase of approximately $8,000,000.
FEBRUARY 1,1918.
DISTRICT NO. 8—ST. LOUIS.
The usual midwinter dullness is apparent in
some lines, but on the whole business in this
district is satisfactory and indications point to
a good spring trade. Heavy snowstorms and
severe cold weather during January hindered
transportation of all kinds and caused delays
in the movement of goods. Tbis, together
with an acute shortage of coal, has hampered
business, but the situation has been greatly
relieved by the closing orders of the Fuel
Administrator. The increased cost of materials is affecting practically all industries, while
some are suffering from their inability to get
supplies at inj price.
Manufacturers of shoes and clothing continue especially busy, as are also producers of
munitions, machinery, tools, and other war
accessories. Factories are more and more adjusting themselves to the manufacture of articles necessary for the prosecution of the war
and discarding nonessentials. For instance,
one concern in this district which formerly
manufactured silk skirts is now making Army
clothing; another that made beds now makes
hospital furniture, and a sash and door company is manufacturing aeroplanes.
The low temperature has stimulated the sale
of winter supplies, especially heavy clothing,
overcoats, and underwear, and merchants report a good trade in this class of merchandise.
The usual postholiday clearance sales have also
stimulated the retail trade. However, the
practice of economy is becoming more and
more the rule, especially among those who have
been accustomed to luxuries, and this is having
its effect upon trade in general.
Collections are reported to be good.
During January the annual fur sale was held
in St. Louis and was well attended by representatives from all over the world.
The heavy snowfalls h<tve afforded protection to the winter wheat and prospects are
favorable for a good crop. According to Government reports for December, in the States
FEBRUARY 1,1918.
EEDEEAL KESEEVE BULLETIN.
of Arkansas, Illinois, Indiana, Kentucky, Mississippi, Missouri, and Tennessee, all or parts
of which are in this district, 10,238,000 acres
were sown in winter wheat last fall, as against
8,669,000 acres in 1916. The condition of the
winter wheat in this district was reported to be
85.7 per cent, as compared with a 10-year average of 88.9 per cent.
In the St. Louis market the demand for live
stock during December, while somewhat better
than a year ago, was not as good as the
previous month. Reports of the St. Louis
National Stock Yards show that, in comparison
with the month of November, there have been
decreases in the sales of all live stock. The
receipts of live stock also show a decrease, excepting hogs and sheep, which show a slight
increase. In comparison with the year 1916
reports for 1917 indicate an increase in the
receipts and sales of cattle and horses and
mules, but a decrease in the receipts and sales
of hogs and sheep.
The postal receipts for December in St. Louis,
Louisville, Memphis, and Little Rock all show
substantial increases over the corresponding
month last year.
The inclement weather, in addition to the
high cost of materials, has further checked
building operations. Reports from the leading
cities in this district indicate that during December there have been perceptible decreases
in the number of building permits issued and
also the estimated cost of construction, both
in comparison with the previous month and
the corresponding month last year.
The demand for money in this district continues good, especially in the large cities. The
rate to customers continues at from 5 | per cent
to 6 per cent.
Practically none of the banks in the large
cities are in the market for commercial paper.
However, there is a good demand for this class
of investment from the country banks, especially in the southern portions of the district.
The rate has ranged from 5f to 6 per cent, the
former being the basic rate.
123
DISTRICT NO. 9—MINNEAPOLIS.
Business throughout the district has been
feeling the effects of the usual midwinter lull
and has been quiet, although fair to good for
this season of the year. Sharp cold weather
has prevailed. The snowfall has not been
heavy, and the movement of commodities has
suffered more from the widespread railway
congestion than from, the usual midwinter
weather difficulties,
Industrial concerns have been fully occupied, except that those engaged upon war contracts have had some difficulty in securing
delivery of material. Labor has been well
employed, and labor conditions throughout the
district are satisfactory.
The month has brought but little change in
banking conditions. Rates are firm, although
the demand is slightly less than a month ago.
Active efforts have been in progress throughout all the vStates in the district to solve the
seed-corn problems created by the partial crop
failure last year. The Government has sent
a representative to check up the situation in
North Dakota as to oats and barley, and steps
have been taken through the Food Administration to anticipate the heavy demand for seed
wheat in the spring. The Federal reserve
bank has been very actively at work in efforts
to locate such seed corn as the farmers within
the district are willing to sell, and has been
listing such supplies for the purpose of making
the information available to districts where
the seed value of the corn was destroyed by
frosts and bad weather. A considerable
amount of seed has been located in this way,
and as a result of the action of the bank in
sending warning notices through member and
State banks to individual farmers, considerable
activity has been stirred up, and farmers are
thoroughly alive to the situation and are
taking steps to provide for their individual requirements. Excellent work is being done by
the State authorities in North and South
Dakota, Minnesota, and Wisconsin, as the
result of which a large amount of good seed
has been saved.
124
FEDERAL RESERVE BULLETIN.
FEBRUARY 1,1918.
The business outlook at the close of the j November. In this district for 1917, receipts
month is satisfactory, and most concerns are I of hogs at the markets were 16 per cent less
looking forward to an active spring.
j than for the previous year.
The sheep movement to the six large marDISTRICT NO. 10—KANSAS CITY.
kets of the district registered an increase of
I less than 1 per cent for this year over last. In
Agriculture.—The total value of the 13 jthe next two months, the movement of all live
principal crops for all States in whole or part | stock will be governed largely by the weather
within this district, according to Government j conditions.
estimates, is $1,718,454,000, a 33 and 40 per j Hog slaughterings in December by the discent increase, respectively, over the 1916 and | trict packers decreased one-half as compared
1915 valuations.
• with the same month last year, which reflects
The discouraging condition of wheat in Kan- j the general condition for the past season, hogs
sas and Nebraska, due to a continued drouth | having been reshipped to the country to be
and an unusually cold and dry December, was j fattened rather than slaughtered. More catgreatly relieved by recent heavy snows, which • tle, however, were slaughtered by local packers
promise to redeem thousands of acres of grain ! than in any other previous year. Operations
considered worthless.
were stimulated by a strong demand for beef
Colorado harvested an average sugar-beet; and the material increase of receipts.
crop, which was sold at increased prices, while ! Mining.—The year 1917 broke all records of
the cotton crop in Oklahoma this year showed ^production for lead and zinc ores in the Kansasa gain over the 1916 production.
j Missouri-Oklahoma district. As a result of the
The movement of all grains throughout the j lowering prices, the valuation of the zinc outyear and especially in the last three months put for the year decreased 5 per cent under
has been affected by the car shortage, local I 1916. The prices for lead advanced over the
receipts and shipments for 1917 showing a j previous year, and the output increased 42 per
marked decline from 1916, although hay re- cent in value. A large increase in surplus
ceipts have registered a good increase. Wheat | stocks at the end of the year is also notable.
stock in elevators of this district decreased ! The Miami (Okla.) district has shown a proslightly during December, while corn supplies j duction of lead and zinc for the past year
gained almost 200 per cen't.
I valued at $15,000,000. Even greater producLive stock.—There was a liberal movement | tion is predicted for this year.
of short-fed cattle from Kansas, Missouri, and j The facts that a marked increase was shown
Oklahoma o;i the local market. Prices ranged in the value of Wyoming's mineral output for
from SI0 to -2, or about $2 higher than a year 1917 over 1916, and that New Mexico has
ago. The movement of the beet-pulp-fed j doubled its output in the past two years, are in
steers from Colorado has started and will in- '•contrast with the estimated value for 1917 of
crease as the season advances. Feeding op- Colorado's mining products, which decreased
erations are active, and will continue strong, j one-sixth under the previous year.
because of the large beet crop and the high I Both Oklahoma and Kansas report a serious
prices received for cattle. For the past year! situation in a Statewide coal shortage, with
cattle receipts on the markets of this district! suffering in some cases. This is attributed
showed an increase of more than one-fourth i principally to a lack of transportation facilities.
over 1916.
j Oil.—Kansas has come to the front in the
The average weight of hogs in December | oil industry during the past year, showing a
was 212 pounds, 26 pounds heavier than a year j production one and one-half times greater than
ago, and the heaviest for a year and one-half. ; the State's production for 1916. The unexThe general quality was the best in many; pected cold weather of the past month has
months. Prices showed a slight increase over :
FEBRUARY 1,1918.
FEDERAL RESERVE BULLETIN.
caused a curtailment "of operations, and in
many cases suspension of work, not only in
these fields, but in aU fields of the oil States in
this district.
For the first time in 10 years the production
of oil in Oklahoma has declined, a decrease
being shown of 14,000,000 barrels, or 13 per
cent under last year, accounted for in part by
the difficulty in securing supplies and the
almost prohibitive prices charged for them.
Now that the Government is securing data as
to the supplies needed in 1918 for the oil industry, this situation, which has been prevalent
for the past year, undoubtedly will be greatly
relieved.
With the production of Wyoming for 1917
estimated at 10,000,000 barrels, an increase|of
one-half over the previous year, and the large
oil-shale acreage in Colorado as yet untouched,
both States look forward to a year which
promises great development of petroleum
resources.
Over 2,000,000 barrels, or 2 per cent of the
crude oil in storage in the Oklahoma-Kansas
field, was withdrawn during the month of
November.
Lumber and construction.—Building permits
for December in 10 principal cities of this district show a 30 per cent decrease from the same
month last year. However, the volume of
permits for the past year increased 7 per cent
over 1916, in comparison with a 23 per cent
decrease in the largest cities of the United
States. The estimated cost of these buildings
for December as against the same month last
year decreased one-fifth and for the year gained
22 per cent over 1916, while the entire United
States showed a decrease of 29 per cent for 1917.
Lumber business is not reported active.
Retail trade has slackened due to the season,
and wholesale interests are not pushing sales.
The market continues firm and, since supplies
are limited because of a prevalent car and labor
shortage, prices hold steady on practically aU
lines of lumber with some slight advances.
Labor.—But few strikes, and those of small
importance, have been reported in this district
during the past month, all of which have been
125
settled, with the exception of one in the southern Kansas coal fields, which leaves these mines,
with a daily production of about 900 tons, idle
in this present time of great need. Local
street-railway men threaten a strike in case of
the employment of women on the cars, this
being considered in the face of a reported shortage of man labor.
With a present shortage of farm labor in
Kansas, with men responding to the call for
Army and Navy service, and others answering
the demands of war industries, a serious problem confronts that State of securing fifty or sixty
thousand farm hands, which are imported every
spring and summer. Western Oklahoma, also,
reports that there are not enough men left on
the farms to insure the production of full crops.
Mercantile.—A favorable decrease of onefifth in the number of commercial business
failures is reported for this district in 1917 in
comparison with 1916, and the liabilities of
concerns failing decreased over 40 per cent.
The number of automobile licenses issued for
1917 by the States of this district made a new
record, which shows an increase of about onehalf over the previous year. Farm tractor sales
have increased during the past year. The
tractor business looks forward to a bright
future owing to higher wages and labor shortage on the farms, although securing shipments
by railroads from the manufacturers is a serious
problem.
Business in general has quickly recovered
from the usual holiday dullness and collections
continue good. Retail trade in clothing and
dry goods is stimulated by clearance sales, with
better prices than ever before, and good demand for hats, caps, boots, and shoes. Drugs
are reported active and the demand for groceries and provisions normal.
Financial.—Deposits of national banks in
this district have reached new high levels, the
exact figures for which are not accessible at this
time. Total deposits in State banks, by comparison of calls, have gained during the past
year in Oklahoma 85 per cent, in Colorado 42
per cent, in Nebraska 35 per cent, in Kansas
23 per cent, and in Missouri 17 per cent.
126
FEDERAL EESEEVE BULLETIN.
Bank clearings in the 17 largest cities of this
district for December increased 47 per cent over
the same month last year, and were one-half
greater for the year 1917 compared with 1916.
During the past month money rates have remained steady, and the demand continues
strong.
January business has felt the usual seasonal
dullness, but the outlook is brighter. Wholesale and retail merchants have been busy since
the turn of the new year taking inventory,
closing their books on last year's business, and
arranging stocks for a new season. Retail
trade has been curtailed during the month on
account of extremely cold weather. Railroad
facilities have been interrupted, the condition
of country roads has kept farmers away from
the cities and trade has been curtailed as the
result. There are evidences of early spring
trade, and wholesalers and jobbers are starting
their traveling salesmen. Advance reports are
that orders are satisfactory, and, notwithstanding the exceptionally high prices of merchandise, dealers are well pleased with the volume
of orders thus far received, and anticipate a
satisfactory spring trade. Collections in wholesale and retail lines are good, and even better
than for the same period in 1917.
A heavy snow and rain over a large portion
of the farming section during the month have
greatly improved agricultural conditions, and
prospects at this writing are good for 1918
crops. The winter wheat crop especially has
been materially benefited. The weather was
unusually severe, and extended to the lower
Rio Grande district, where the freeze did much
damage to winter vegetable crops of that section. It is estimated that lettuce was damaged
50 per cent, cabbage 75 per cent, and other
vegetables similarly. Citrus fruit was injured
but slightly. In the extreme west and northwest sections the rainfall was not sufficient to
break the protracted drouth, and farming
conditions in those communities show little
improvement. It is, indeed, commendable,
however, to note the optimism of the people of
the drouth-stricken sections. One of our correspondents, in the heart of the drouth area,
FEBRUARY 1,191S.
writes: "The spirit of our people is unbroken.
They are l pressing the collar 'harder than ever
before. Every economy is being practiced,
and we share their optimism that prosperity
must soon again reward their faithful efforts."
The manufacturing industries of the district
are active and have sufficient orders in hand
to run indefinitely. As in other sections, the
fuel situation in this district has been serious
and curtailed operations in various lines. The
situation has been aggravated by the unusually
cold weather.
There have been more or less exaggerated
reports as to cattle losses in the range country
during the recent blizzard. While there were,
of course, some losses, principally in sections
where the range was poor on account of insufficient moisture, we do not believe as large
numbers of cattle have died as advance reports
indicated. It is difficult to reconcile reports
received. One correspondent in west Texas
advises that losses were less than 1 per cent.
Another, in the Roswell district, states that
the losses were at least 10 per cent. The
outlook for spring in the cattle industry is not
encouraging, on account of poor range conditions, and unless seasonal rains fall during the
remainder of the winter the problems which
stockmen have faced for several months, and
continue to bear, will be multiplied.
This is the season of the year when banks
of the district have the least demand upon
them. Most of the institutions are in a strong
position, as reflected by the reports of condition on December 31. Heavy deposits and
cash are noted, and reserves well maintained.
Commercial paper is being sought as an investment of idle funds. Money is easy. The sale
of war savings stamps and thrift certificates is
well under way, and thrift societies are being
organized in every community. People of the
district are responding liberally and unselfishly
to the Government's financial demands. There
is also a liberal response to the various offerings of certificates of indebtedness. Demand
with banks in the cattle raising sections is
heavy. The bond market is extremely quiet.
While there are occasional purchases by
FEBRUARY 1,1918.
private investors where the offerings are
especially attractive, brokers report that the
market is quiet and subordinated to the Government's issues.
Clearings at the principal cities of the district for December show an increase of 31 per
cent over December, 1916. The increase at
the same cities for the year amounts to 33 per
cent over 1916.
Building operatkxns are inactive, which is to
be expected at this midwinter season. There
is very little construction under way, and the
industry is quiet. As a result there is a surplus
of skilled labor in the construction trades.
Indications are there will be considerable unemployment in the district for the next few
months. The release of men from Government construction has created a surplus in
various lines of skilled labor, and this ha,s contributed to the unemployment. There is a
good demand for unskilled workmen and reports of actual shortage are numerous. The
most serious shortage, however, seems to be
that of farm labor, and it is predicted that
when the planting season opens the shortage
will become more acute.
Failures in Texas for the past year reflect
the general improvement in business, and the
number and amount of liabilities carried shows
a material decrease when compared with 1916.
The figures were as follows: 1916—Number,
588; liabilities, $5,936,223. 1917—Number,
431; liabilities, $3,380,339.
Post-office receipts at the principal cities of
the district show an increase of 41 per cent for
the month of December over December, 1916.
The copper mines of Arizona, are operating
at full capacity, and the industry is quite
prosperous at the present time.
The discovery of oil in the Brownwood section has made business active there, and offset
to an extent the poor returns from crops, as a,
result of the drought.
While ifc is too early in the year to make
predictions as to business for 1918, it is gratifying to report that prospects at the present time
are excellent. The fact that we are at war is
127
FEDERAL RESEBVE BULLETIN".
being brought closer home every day. The
adjustment to this condition ds still going on.
DISTRICT NO. 12—SAN FRANCISCO.
Shipbuilding on the Pacific coast is proceeding upon a scale which seems vast measured by
any other standard than that of the critically
vital need for many ships to transport troops,
food, and war materials. The following details
give some indication of the development within
12 months of this industry at Seattle:
1916
Plants building steel ships
Plants building wooden ships
Number of employees
Monthlv pav roll
Steel cargo ships launched
Tonnage of steel ships launched
Wooden ships launched
Tonnage of wooden ships launched
Cargo ships in ways December 10
Tonnage in ways December 10
Total amount of contracts
1917
3
2
6,400
$600,000
4
29,600
4
10
15,200
§1,600,000
23
201,000
10
23,950
13
45
79,500
232,450
$155,000,000
m , ooo, ooo
The volume of construction at San Francisco
and other California yards is shown by the
following:
Num- Tonnage.
ber.
Steel vessels for which contracts have
been closed
Steel vessels for which contracts are
about to be closed
Wooden vessels for which contracts
have been closed
Total
Total steel and wood ships to be built
by July 1,1918
Cost.
73
700,000
$105,000,000
21
150,000
30,000.000
12
50,000
6,000, GOO
106
900,000
141,000,000
300 2,000,000
300,000,000
It is estimated that United States warships
costing over $200,000,000 are also under construction at Pacific coast yards.
For the year ending October 31, 1917, the
imports of Seattle were $262,000,000 and exports $182,000,000, compared with $156,000,000 and $188,000,000, respectively, for 1916.
Imports and exports at San Francisco for the
same period were $202,000,000 and $143,000,000, respectively, as against $115,000,000 and
$109,000,000 in 1916.
It is stated that as many passenger steamers
from trans-Pacific ports are now calling at San
Francisco as at any time in its history. Change
128
FEDERAL RESERVE BULLETIN.
in trade routes due to war conditions is bringing to Pacific coast ports thousands of travelers
for business or pleasure who would normally
travel by other routes.
The following are final estimates of grain production in the seven States of this district:
Wheat
Oats...
Barley,
1917
1916
1915
Bushels.
70,899,000
43,037,000
57,664,000
Bushels.
87,508,000
56,850,000
55,770,000
Bushels.
108,192,000
58,136,000
62,435,000
Of these totals Washington, Idaho, and Oregon produced approximately 80 per cent of the
wheat, divided, Washington about 40 per cent,
Idaho and Oregon each about 20 per cent; the
same three States, about 80 per cent of the
oats, in nearly equal proportions; and California about two-thirds of the barley.
The crop of commercial apples of the State
of Washington for 1917, amounting to 19,815
carloads, was the largest of any State in the
Union and compares with the 1916 total of
approximately 16,000 carloads. In spite of
scarcity of boxes, shortage of labor, and limited
shipping facilities, storage facilities were such
as to minimize the losses. Shipments of other
fruits were: Peaches, 2,112 carloads; cherries,
plums, prunes, 1,465 carloads; and other small
fruits, 965 carloads.
The Government report places the apple
crop of Oregon at 650,000 barrels; of Idaho,
567,000 barrels; and of California, 1,125,000
barrels. Utah reports good crops compared
with a total failure a year ago,
California production of fresh fruits during
1917 was valued at $40,000,000; citrus fruits,
$45,000,000; dried fruits and raisins, $35,000,000; prunes, $10,000,000; canned fruits and
vegetables, $30,000,000; olives and olive oil,
$5,000,000; nuts, $8,000,000.
California produced twice as many beans in
1917 as in any previous year, the crop of
4,500,000 centals, valued at $45,000,000, being
estimated as one-third the total of the entire
country.
The citrus crop for the season 1917-18 will be
very light. Due to a few days of unusual heat
FEBRUARY 1 , 1 9 i a
last summer, the navel-orange crop of southern
California will be exceptionally light, some sections reporting not more than 15 per cent of
normal.
The live-stock situation, which a month ago
was very unfavorable because of drought and
scarcity of feed, has been relieved by widespread rains. Precipitation throughout the
district, however, still averages far below the
seasonal normal. The deficiency of snow in
the mountains threatens inadequate supply of
water for irrigation next summer. In southern
Idaho feed is reported as abundant, hay selling
at $9 to $10 per ton, especially because of a
winter remarkably open thus far. In some
sections herds have been considerably reduced
by sales because of scarcity and high prices of
feed.
Labor is unsettled. Strikes and threatened
strikes have usually resulted in so-called compromises, under which there have been substantial concessions of laborers' demands.
There are of course many patriotic workmen,
but the distressing fact is rather generally
reported that there is very unpatriotic lack of
output per unit, many of those dominating the
attitude of the workmen appearing to view the
situation as one in which they may properly
seek their supposed advantage by rendering
least service while receiving highest return. A
clearer vision would drive home the conviction
that quite regardless of wage contentions or
whether wages are high or low, their real advantage lies in greatest output, as that contributes most to winning the war and thus to the
safeguarding of their own freedom.
During 1917 Arizona, the leading copper
State, produced an estimated total of 687,000,000 pounds, some 7,000,000 pounds less than in
1916. Smelting was hampered by labor troubles. Utah produced 245,000,000 pounds, increase 13,000,000; Nevada 110,000,000, increase 9,200,000; California 45,000,000, and
Alaska 86,000,000. The total production at
the average monthly quotation of 27.2 cents
per pound would have a value of $319,500,000.
The production of petroleum in California
during 1917 amounted to 97,267,852 barrels, an
FEBRUARY 1,1918.
increase of 5,445,470 barrels over 1916. Consumption however exceeded this by 11,585,725
barrels, stored stocks declining from 44,036,190
barrels on December 31, 1916, to 32,450,465 on
December 31, 1917.
California led all other States in gold production with 1,006,969 ounces in 1917 and Utah
in silver with 14,315,300 ounces.
Retail sales are reported large, even in nonessentials and luxuries. Conditions in this district perhaps do not lend themselves readily to
restriction of consumption to essentials. Trade
and industry are profitable, employment is
plentiful, wages are high. A mild climate
throughout most of the district conduces much
to pleasure seeking. It is far from the scene of
war and the preparations for war are little in
evidence. Many are helping, but there seems
no widespread conviction of the fact that every
avoidable consumption of materials necessary
for war, wool, cotton, gasoline, etc., or of that
which represents labor is a handicap to this
country and a help to Germany.
In 17 principal cities of the district bank
clearings in 1917 were 34 per cent greater than
in 1916. Building permits in December were
22 per cent less-than in December, 1916,
State banks are showing an increasing disposition to join the Federal Reserve system.
The following State banks have become members.
129
FEDERAL RESERVE BULLETIN.
Num- Capital and Resources.
ber.
surplus.
California...
Idaho
Oregon.. „
Washington
$862,500
83,750
2,295,000
3,590,000
$4,588,000
828,000
23,562,000
38,373,000
The total resources of State banks in the
States mentioned are reported as follows:
California
Idaho
Oregon...
Washington
$993,201,000
51,026,000
86,109,000
138,374,000
The State banks have thus made a start, but
if they generally gave serious consideration to
their own possible fate if the strength of the
Federal Reserve system should prove inadequate to financial strains of the character which
may grow out of war necessities, a struggle for
self-protection would bring their applications
for membership in an avalanche, even though
patriotism did not move them and even though
their possible transactions with the Federal
Reserve Bank might be very limited.
In Idaho the bank commissioner in issuing
charters to new banks seeks to have them become from the outset members of the Federal
Reserve system.
The twelfth Federal reserve district is producing largely and selling its products, including laborj at high prices. It is prosperous.
130
FEDEEAL RESERVE BULLETIN.
FEBRUARY 1,1918.
RATIO OF TOTAL RESERVES TO AGGREGATE NET DEPOSIT AND FEDERAL RESERVE NOTE LIABILITIES.
In the following table and accompanying
During 1917 net deposits of the Federal Reserve Banks increased from 651.2 to 1,458.0 diagram are shown the weekly changes during
millions, as the result of transfer of reserves 1917 in net deposits, Federal Reserve notes
and the increase of members' deposit credits in in actual circulation, total reserves and the
connection with the large discount operations ratio of the latter to the aggregate net deposit
incident to the flotation of the two Liberty and Federal Reserve note liabilities.
loans and the placing of the several issues of Net deposits, Federal Reserve notes in circulation, total
certificates of indebtedness. Particularly large reserves, and ratio of total reserves to aggregate net deposit
and Federal Reserve note liabilities at close of business
increases of net deposits are shown about the on each Friday during the calendar year 1917.
middle and the latter part of June and the end
[In thousands of dollars: i. e., 000 omitted.]
of October.
Ratio of
I
total rei
Circulation of Federal Reserve notes shows
Aggreserve to
gate net
aggrea larger increase for the year than net deposits,
Federal deposits
gate net
Reserve
and
deposits
Net de- notes
Total
the total at the end of the year exceeding by
in Federal
and
posits.
circula- Reserve reserve. Federal
973.6 millions the total shown at the beginning
tion.
note
reserve
liabilinote
of the year. As distinct from net deposits,
ties.
liabilities.
which show the largest increase during June,
the growth in note circulation is more evenly
Per cent.
" 82.1
spread over the year, though the increase Jan. 5
651,252 272,873 924,125 758,242
83.0
687,105 268,168 955,273 792,433
Jan. 12
84.0
during the latter half of 1917 was over three Jan. 19
933,515 783,822
670,548 262,967
85.3
680,262 259,768 940,030 808,824
Jan. 26
86.4
times larger than during the first half of the Feb. 2
935,175 808,019
675,145 260,030
84.3
656,422 278,523 934,945 788,242
Feb. 9
83.0
year.
960,410
668,571
291,839
Feb. 16
797,271
83.5
677,036 303,171 980,207
Feb. 23
818,573
85.0
681,336 314,258 995,594
Cash reserves, composed mainly of gold, Mar. 2
846,093
86.1
702,159 326,612 1,028,771 885,616
Mar. 9
87.6
1,042,954
706,893
show the largest gain about the end of June, Mar. 16
914,102
88.5
695,548 346,804 1,042,352 922,720
Mar. 23
89.0
706,905 357,610 1,064,515 947,328
when large transfers of gold to the banks were Mar. 30
84.7
760,282 376,510 1,136,792
6
962,662
84.7
1,146,407
744,598
made following the enactment on' June 21 Apr.
401,809
Apr. 13
971,006
84.8
743,989 414,357 1,158,346
Apr. 2 0 . . . .
982,633
83.8
1,164,041
743,532
of the amendments to the Act, which provided, Apr.
420,509
27
975,481
85.0
808,890
428,502 1,237,392 l,030;201
May 4
83.3
among others, for a change in reserve require- ;i May 11
815,564
438,218 1,253,782 1,035,759
82.1
793,028 446,501 1,239,529 1,016,745
May 18
84.9
1,175,574
ments and the maintenance of member banks' May
721,172
454,402
25
1,014,263
80.4
771,946 464,865 1,236,811 993,417
Junel
77.5
reserve exclusively at the Federal Reserve JuneS
i;
356,145
876,676
481,469
1,051,511
71.4
1,014,177
491,615 1,505,792 1,075,408
June 15
71.7
Banks. For the entire year a gain in total June
1,741,931
1,242,210
499,721
22
1,247,698
75.4
1,261,800 508,753 1,770,553 1,334,406
June 29
79.6
reserves from 758.2 to 1,720.8 millions is July 6
1,155,722 527,459 1,683,181 1,356,017
79.9
1,221,027 532,508 1,753,535 1,400,916
July 13
79.1
shown.
1,805,823
1,273,597
534.226
July 20
1,430.321
80.1
1,232,200 534; 015 1,766,215 1,414; 052
27
From the beginning of the year to the end July
81.9
1,194,170
540,785 1,734,955 1,421,382
Aug. 3
82.7
1,171,722
549,244 1,720,966 1,424,059
Aug. 10
of March the Federal Reserve Banks reduced Aug. 17
82.0
1,183,088 558,782 1,741,870 1,427,489
82.6
1,152,359 573.049 1,725,408 1,424,769
24
their earning assets by about 25 per cent. Aug.
81.7
1,721,841
1,133,926
587i 915
Aug. 31
1,406,108
79.6
1,156.923 621,299 1,778,222 , 415,391
Sept. 7
As a result, the ratio of their reserves to com- Sept. 14
80.0
1,137,606 644,567 1,782,173 1,426,034
79.6
1,153,921 670,246 1,824,167 1,452,251
Sept. 21
bined net deposits and Federal Reserve note Sept. 28
77.1
1,193,886 700,212 1,894,098 1,457,559
76.9
1,256,491 740,916 1,997,407 1,486,715
Oct.
5
liabilities increased from 82.1 to 89 per cent. Oct. 12
74.5
2,007,211
1,227,326
779,885
75.6
1,195,390 815.210 2,010,600 1,495,558
Oct. 19
1,520,512
On June 15 this ratio stood at 71.4 per cent, Oct.
71.7
1,318,798 847; 506 2,166,304 1.552,942
26
69.0
1,432,772 881,001 2,313,773 !i; 596,819
Nov.
2
but increased gradually to 82.6 per cent on Nov. 9
69.4
2,341,059
1,408,547
932,512
65.8
1,515,365 972,585 2,487,950 1,625,585
Nov.
16
1,636,853
August 24. Between the end of August and Nov. 23
64.7
1,547.122 11,015,892 2,563,014 1,658,762
63.2
1,595;512 1,056,983 2,652,495 !l,676,211
Nov. 30
November the percentage declined to 63.2 Dec.
65.1
i;474,285
7
; , 8 5 11,110.537 2,584,822
63.2
1538214 11,153,385 2; 691,599 1,683,307
Dec.
14
1,538,214
1,700,384
per cent and stood at 63.6 on the last Friday Dec. 21
62.9
|2,693,965
'1,466,323 1,227,642
1,693,670
63.6
Dec. 28
|1,457,994 1,246,488 12,704,482 1,720,768
of the year.
FEBRUARY 1,1918.
131
FEDERAL RESERVE BULLETIN.
NET DEPOSITS & F.RNOTE LIABILITIES,
TOTAL RESERVES, AND RATIO OF TOTAL RESERVES
TOA66RE6ATE[NET'DEPOSITAND F.R.NOTELIABILITIES,
DURIHG CALENDAR YEAR 1917.
Qtrm £>
Curve /:
Joted Cash Reserves
3te
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so
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2900
2S0G
so
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2800
2S0Q
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1600
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//do
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noo
wo
tooo
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800
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700
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600
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400
400
300
300
200
WO
100
100
SIZ 19 26 Z 0 16 Z32
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6 8 Z)27 3 Q !? 2f3l 7 M-3 & S fc®35 2 9 JS23'30? f4 2128
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MARCH" rWRIL MAY
I MAY1 JUNE
1 J
1 JULY I AU6U5T\S£Pr£M^\oaOBER\NOV£MB£R\D£CmBER\
132
FEDERAL BESEBVE BULLETIN.
FEBRUARY 1,1913.
FEDERAL RESERVE NOTES AND GOLD
In the following table and accompanying
COVER HELD BY FEDERAL RESERVE diagram are shown the weekly changes in the
AGENTS DURING CALENDAR YEAR 1917. amounts of notes outstanding and in circula-
During the year the total of Federal Reserve
notes issued by Federal Reserve agents increased by 1,041.5 millions, while the amount
of gold cover held by them against these notes
increased by about 500.6 millions. In the
earlier part of the year until about June 8, an
increase of 212 millions in the amount of notes
issued was accompanied by an increase of about
194 millions in the amount of gold cover held
against these notes. During the following two
weeks notes were issued apparently against
paper, while gold in some volume was transferred to the banks in exchange for paper
pledged with the agents. This resulted in
strengthening the reserve position of the banks,
the law, as it then stood, permitting to count
as reserve only gold and lawful money held by
the banks, but not amounts held by the agents.
On June 22, the notes issued were covered by
gold to the extent of 72.4 while the ratio of gold
reserve (including gold in the redemption fund
standing to the credit of the banks) to notes in
actual circulation (i. e., amounts issued less
amounts of Federal Reserve notes held by the
banks and in process of redemption) was 79.8
per cent. On August 17, the ratio of gold
cover to the amount of notes issued had risen
to about 82 per cent, while the ratio of gold
reserve to notes in circulation had gone up to
91.7 per cent.
Subsequent changes in the relative amounts
of gold cover against notes issued and in circulation are due to issues in increasing volume of
notes against commercial paper and to some
extent also to transfers of gold by the agents
to the banks for the purpose of equalizing the
banks' reserves against deposits and Federal
Reserve notes, as figured under the amended
act. On December 14, the ratio of gold with
the agents to notes issued had gone down to
55.6 per cent, while the note reserve had declined to 60.8 per cent. On the last Friday of
the year the former ratio stood at 58.3 while
the note reserve had risen to 64.3 per cent.
tion, also in the volume of gold cover held by
the agents against Federal Reserve notes outstanding. The shaded portion between curves
1 and 2 indicates the required amounts of paper
collateral. These amounts are considerably
less than the actual amounts pledged by the
banks with the agents, the excess amount of
paper held by the latter on the last Friday of
the year being 46.8 millions.
Federal Reserve notes outstanding and in circulation; also
amounts of gold and required paper collateral held by
Federal Reserve agents during 1917.
[In thousands of dollars; i. e., 000 omitted.]
1917.
Jan. 5 . . . .
Jan.12...
Jan. 1 9 . . .
Jan. 2 6 . . .
Feb. 2 . . . .
Feb. 9 . . . .
Feb. 16...
Feb. 2 3 . . .
Mar. 2 . . . .
Mar. 9 . . . .
Mar. 16...
Mar. 2 3 . . .
Mar. 30...
Apr. 5-6..
Apr. 1 3 . . .
Apr. 20...
Apr. 27...
May 4
May 1 1 . . .
May 1 8 . . .
May 2 5 . . .
Junel
June 8 —
June 15...
June 22...
June 29...
July 6 . . . .
July 1 3 . . .
July 2 0 . . .
July 2 7 . . .
Aug. 3 . . . .
Aug. 10...
Aug. 17...
Aug. 24...
Aug. 31...
Sept. 7 . . .
Sept. 14..
Sept. 2 1 . .
Sept. 28..
Oct. 5
Oct. 11-12
Oct. 1 9 . . .
Oct. 2 6 . . .
Nov. 2 . . . .
Nov. 9
Nov. 16..
Nov. 23...
Nov. 30...
Dec. 7 . . . .
Dec. 1 4 . . .
Dec. 2 1 . . .
Dec. 2 8 . . .
Gold
cover.
281,292
274,512
273,141
273,320
274,074
288,720
297,270
306,186
317,581
328,433
338,608
349,519
360,668
378,450
410,796
418,538
122,905
433,089
438,323
448,311
456,611
475,201
459,942
390,765
402,639
413,715
428,338
423,889
434,193
467,845
485,467
502,588
488,536
493,185
494,779
520,470
536,009
558,227
560, H I
580,734
618,827
614,692
602,433
616,254
629,906
623,948
661,824
683,939
683,378
746,107
781,851
Federal | Federal
Reserve I Reserve
notes
notes
outin circustanding. lation.
300,280
292,014
291,693
290,577
308,348
321,453
331,469
343,847
355,263
363,278
372,244
382.564
400,698
431,788
440,539
446,544
458,874
470,401
478,906
488,088
499,844
512,527
527,971
539,976
550,504
570,725
579,957
583,937
584,464
590,389
601,227
613,646
627,307
644,911
680,073
700,430
725,397
757,076
797,630
837,425
875,278
903,387
941,284
995,384
[,038,620
1,102,287
1,126,345
[,184,667
[,229,007
[,295,069
[,341,752
272,873
268,168
262,967
259,768
260,030
278,523
291,839
303,171
314.258
326,612
336,061
346,804
357,765
376,510
401,809
414,357
420,509
. 428>502
438,218
446,501
454,402
464,865
481,469
491,615
499,721
508,807
527,549
532,508
534,226
534,015
540,785
549,244
558,782
573,049
587,915
621,299
644,567
670,246
700,212
740,916
779,885
815,210
847,506
881,001
932,512
972,585
1,015.892
1,056,983
1,110,537
1,153,385
1,227,642
1,246,488
133
FEDEBAL RESERVE BULLETIN.
FEBRUARY 1,1918.
s
FEDERAL RESERVE NOTES OUTSTANDING
AND IN CIRCULA T/ON DURING 1917,
ALSO AMOUNTS OF GOLD AND REQUIRED PAPER
HELD BY FR. AGENTS.
Curve /.• jfmounts ofOold Cover'held against JTJfcJIfotes issued*
Curve 2: Jfnwimts of S'Jt.JVotes' outstanding,
(~6old Cover, jdwsffiqwr Collateral required,).
Carre J.- Jl'mount? ofJTJ£.J¥o£es uiJlctaal Circalattoih,
(~Jfmoan£$QutstaMMfiff, less JfrnoarUs Md,
btfJSanfCs and iw process ofMedemfttwn)..
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134
'FEDERAL BESEBVE BULLETIN.
FEBRUARY 1,1918.
DISCOUNT OPERATIONS OF THE FEDERAL RESERVE BANKS.
During the month of December discount
operations of the Federal Reserve Banks
totaled $892,237,774, as against $3,206,486,771
for November and $2,681,165,854 for October
of the present year. As is seen from a comparison of these figures, the pressure upon the
Federal Reserve Banks7 liquid resources, caused
by member banks seeking accommodation for
themselves and customers investing in Government war loan securities, was much less
during December than for the two months
previous, though a large part of the paper discounted by the reserve banks, as during the
earlier months, was secured by Government war
loan obligations. Member banks7 collateral
notes thus secured totaled 238 millions, or 26.8
per cent of the total paper discounted with the
Federal Reserve Banks during the month as
against 80 per cent of the much larger total
reported the month before.
Discounts of collateral notes secured by commercial paper from 412.5 millions during
November declined to 149,3 millions during
December. This large decrease in the use of
collateral notes was due apparently in part to
the provision in the war revenue act of October 3, effective December 1, which imposes a
tax of 2 cents per $100 or any fractional part
thereof on promissory notes (held to include
collateral notes tendered for discount to
Federal Reserve Banks)*
Total discounts fof the month include in
addition 15.4 millions of trade acceptances in
the domestic and foreign trades, compared with
6.9 millions for November, and 488.7 millions
of unclassified discounts, including customers7
paper secured by Government war loan obligations, as against 201.4 millions of like paper
reported the month before.
Discounts for the calendar year 1917 aggregated 8,968.8 millions, as against 207.9 millions
in 1916. Of the total for the more recent year,
7,744.5 millions, or 86.3 per cent, were collateral notes, while 37.5 millions were reported as
trade acceptances, 12.9 millions as commodity
paper, and 1,173.9 millions as customers7 paper,
including bills secured by Liberty bonds and
certificates of indebtednessOver 90 per cent of the year7s discounts is
represented by 15-day paper (i. e., maturing
within 15 days from date of discount with the
Federal Reserve Bank), this percentage running
as high as 97 per cent in the case of the New
York bank.
On the last Friday of the year the Federal
Reserve Banks held a total of $680,706,000 of
discounted bills, compared with $756,398,000
at the end of November. About 43 per cent
of the total holdings about the end of December,
as against 66 per cent the month before, was
paper directly traceable to war financing, i. e,,
member banks7 collateral notes and customers'
paper secured by Liberty bonds and certificates
of indebtedness. The remainder was composed of $87,751,000 of member banks' collateral notes secured by commercial paper,
$283,737,000 of customers7 (secured and unsecured) paper n. s., $8,631,000 of agricultural,
and $7,662,000 of live-stock paper. About 72
per cent of the agricultural paper was held by
the Chicago and Minneapolis banks, while
about 86 per cent of the live-stock paper is
credited to the Kansas City, Dallas, and
Minneapolis banks.
During the month the number of member
banks increased from 7,846 to 7,882, largely as
the result of admission to membership of State
banks and trust companies. The number of
members accommodated through the discount
of paper during the last quarter of the year was
2,261, compared with 1,647 during the third
quarter, and 1,185 during the second quarter of
the year. Chicago, with 504 member banks
discounting during the fourth quarter, leads all
other districts, followed by New York with
283 member banks accommodated during the
last quarter of the year.
135
FEDEBAL BESEBVE BULLETIN.
FEBRUARY 1,1918.
Bills discounted during the month of December, 1917 and 1916, and the 12 months ending December, 1917 and 1916, distributed by classes.
Member banks' collateral notes.
Secured by
Liberty bonds
or United
States certificates of
indebtedness.
Federal Reserve Bank.
Boston
New York
Philadelphia
Cleveland
Kichmond
Atlanta
Chicago*
St. Louis
Minneapolis
Kansas City
Dallas
San|Francisco
Total,
Total,
Total,
Total,
,
December, 1917
December, 1916
January-December, 1917
January-December, 1916
Trade
All other
discounts.
Commodity
paper.
Otherwise
secured.
SI, 520,150
45,637,140
1,722,250
1,187,000
5,291,713
3,281,500
59,940,560
3,450,000
588,522
24,730,287
1,084,280
835,000
$2,687,752
3,781,191
99,001
2,297,491
.565,101
1,163,800
226,361
982,609
97,243
627,867
7,862
2,888,373
"i,"325,"266'
149,268,402
29,892,400
7,744,511,195
38,967,447
15,424,651
1,103,000
37,552,920
5,212,300
$11,590,444
102,149,997
9,485,501
18,821,300
8,209,060
4,923,850
45,769,000
21,727,740
2,685,622
6,984,350
1,000,000
5,460,943
238,807,807
Total.
266,987
$90,280,529
110,664,647
33,695,673
41,325,396
105,465,697
13,971,786
31,078,518
23,822,356
5,068,607
9,868,497
1,452,851
20,427,220
$106,078,875
262,232,975
45,025,375
63,631,187
119,531,571
24,666,136
137,014,439
49,982,705
8,439,994
42,211,001
3,544,993
29,878,523
1,615,137
816,700
12,871,660
16,813,200
487,121,777
31,903,900
1,173,872,190
146,877,553
892,237,774
63,716,000
8,968,807,965
207,870,500
$22,950
Amounts of discounted paper, including member banks1 collateral notes, held by each Federal Reserve Bank on the last Friday
in December, 1917, distributed by classes.
[In thousands of dollars; i. e., 000 omitted.]
Banks.
Boston
New York
Philadelphia...
Cleveland
Kichmond
Atlanta........
Chicago
St. Louis
Minneapolis
Kansas City...
Dallas
San! Francisco..
Total.
Percent
Agricultural
paper.
Live-stock
paper.
Member banks1 collateral
notes.
Customers'
paper
secured by
Liberty
Secured by
bonds or
Liberty
United
bonds or
Otherwise
States certiUnited
secured.
ficates of
States certiindebtedness. ficates of
indebtedness.
1,269
674
218
383
6,855
79,690
5,368
5,262
4,948
2,468
21,641
11,341
883
9,663
260
2,268
1,286
37,484
478
7
5
140
89
88
1,171
3,608
1,802
752
36,518
58,443
16,467
10,931
5,760
35
6,782
1,633
320
199
4,802
388
8,631
1.3
7,662
1.1
142,278
20.9
150,647
22.1
87,751
12.9
61
188
43
515
305
4,908
67
1,417
36,510
1,725
316
7,465
775
295
All other
discounts.
21,272
79,307
17,020
28,358
18,879
11,895
36,595
24,958
Total.
65,931
254,985
9,532
13,205
1,016
21,700
44,601
30,107
16,260
106,525
39,812
13,491
34,814
8,873
25,786
283,737
41.7
680,706
100.0
136
FEDERAL RESERVE BULLETIN.
FEBRUARY 1,1918.
Bills, including member banks* collateral notes, discounted by each Federal Reserve Bank during the 8 months ending December9
1917, distributed by maturities as of date of discount
Districts.
District No. 1—Boston:
Connecticut
Maine....
Massachusetts.
New Hampshire
Rhode Island
—
Vermont
TotalDistrict No. 2—New York:
New York
New Jersey.......
Connecticut
—
Total.
District No. 3—Philadelphia:
Delaware.....
New Jersey
Pennsylvania
TotalDistrict No. 4—Cleveland:
Kentucky
Ohio
.
Pennsylvania.
West Virginia
Total.
District No. 5—Richmond:
District of Columbia...
Maryland
..
North Carolina
South Carolina
Virginia
West Virginia
Total...
Number
of member banks
at end of
December.
Number
of banks
accommodated
during
quarter
ending
Dec. 31.
55
63
163
55
18
48
Maturities.
Within
15 days.
From 31 to
From 61 to
90 days.
83,547,191
226,822
33,964,967
944,488
1,606,158
862,501
$2,878,597
212,727
18,394,646
1,064,730
1,954,486
1,106,831
$1,734,931
246,164
25,946,866
558,259
2,398,785
314,043
85,420,345
614,048
66,401,458
720,284
5,984,795
365,169
8121,632
1,487
783,073
13,430
13,731
813,702,696
1,301,248
145,491,010
3,301,191
11,944,224
2,662,275
933,353
178,402,644
Total..
District No. 7—Chicago:
Illinois
i
Indiana....
Iowa
Michigan
Wisconsin
Total..
District No. 8-St. Louis:
Arkansas
Illinois
Indiana
Kentucky
Mississippi
Missouri
Tennessee
,
TotalDistrict No. 9—Minneapolis:
Michigan
Minnesota
North Dakota
South Dakota
Over 90
days.
402
163
41,152,127
25,612,017
31,199,048
79,506,099
519
136
15
222
51
10
5,162,573,498
11,813,991
1,258,400
11,377,437
596,659
152,733
36,097,004
2,466,159
1,265,023
75,908,463
3,553,489
1,730,522
5,285,956,402
18,430,298
4,406,678
670
283 5,175,645,889
12,126,829
39,828,186
81,192,474
5,308,793,378
23
73
542
1
24
152
50,000
3,712.282
57,787,563
300,258
7,124,639
470,633
4,718,961
422,468
18,733,578
900
2,425
50,000
4,906,541
88,367,166
635
177
61,549,845
7,424,897
5,189,594
19,156,046
3,325
93,323,707
991,472
60,579,710
27,011,687
525,000
292,799
13,254,742
5,510,082
150,000
232,454
11,340,547
2,053,136
1,000
700,636
13,200,975
1,630,070
5,075
10,625
20,000
2,217,361
98,386,599
36,204,975
701,075
89,107,869
19,207,623
13,627,137
15,536,756
30,625
137,510,010
376,709
21,160,115
5,965,304
4,828,562
151,292,744
935,454
204,056
1,269,064
566,605
328,378
832,022
29,413
121,347
1,734,053
925,904
1,184,957
1,571,036
40,760
133,020
2,294,309
1,321,449
1,348,724
1,897,206
528,060
10,155
9,864
2,600
500
18,4558,887
3,229,538
70
301
13
764
79
15
97
81
84
151
102
530
166
2,559,445
2,318,194
16,585,914
23,745,852
1,307,756
4,247,915
672,465
358,039
1,843,439
174,400
240,437
337,406
7,522,769
5,578,056
. ::... _: —
926,299
722,341
940,307
193,104
2,956,993
2,084,795
754,185
47,133
262,598
17,898
703,041
548,231
1
District No. 6—Atlanta:
Alabama......
Florida
Georgia
Louisiana
Mississippi.......
Tennessee
Total bills
discounted.
From 16 to
30 days.
95
57
107
25
X8
90
23,120
835,132
26,467,696
8,789,126
155,593,508
1,533,687
200,912,370
60,478
4,911,539
3,858,416
23,471,573
24,721,57a
1,828,689
5,897,071
392
176
50,765,076
3,626,186
6,339,465
3,817,460
140,671
64,688,858
334
200
358
99
109
150
77
189
44
44
11,284,440
27,947,661
51,689,363
27,489,917
4,399,858
2,728,650
1,757,289
1,103,494
2,694,683
4,610,755
5,279,394
5,845,098
2,165,665
10,945,710
9,799,134
1,881,204
7,875,615
2,417,668
987,857
1,541,180
4,428,854
102,155
67,147
227,154,626
21,470,951
47,854,517
57,478,345
42,185,314
1,100
504
12,683,974
28,846,622
22,961,478
6,436,599
396,143,753
5,612,229
1,528,250
4,032,000
4,282,941
59,600
58,449,796
6,700,236
423,138
288,434
147,695
561,087
19,850
6,324,198
1,072,649
981,875
585,006
392,012
1,486,536
97,142
4,855,571
1,687,342
456,610
177,710
294,540
933,094
125,062
4,448,358
2,028,509
30,296
31,675
7,504,148
2,611,075
4,866,247
7,263,658
307,654
74,125,629
11,488,736
80,665,052
8,837,051
10,085,484
85,301
22,895,550
144,651
30,301
1,274,862
57,501
79,527
114,098
3,309,507
53,772
478,948
67
158
63
68
18
87
20
479
34
295
162
127
92
325,215,080
64,643
2,534,989
229,415
414,991
48,772
6,000
48,706
116,677
108,168,147
572,642
359,804
159,760
294,343
30,587,550
845,143
1,633,192
137
FEDERAL RESERVE BULLETIN.
FEBRUABY 1 , 1 9 1 8 .
Bills, including member banks1 collateral notes, discounted by each Federal Reserve Bank during the $ months ending December,
1917, distributed by maturities as of date of discount—Continued.
Number
of member banks
at end of
December.
Districts.
District No. 9—Minneapolis—Continued.
Montana
Wisconsin
Total
District No. 10—Kansas City:
Colorado
Kansas
Missouri
Nebraska
New Mexico. . . . . .
Oklahoma
w
Wyoming
. . .
Total
District No. 11—Dallas:
Arizona.
New Mexico.
Oklahoma
Texas
...
Total
District No. 12—San Francisco:
Alaska .
Arizona.
California
Idaho
Nevada
Oregon . ..
Utah
Washington
Total
Number
of banks
accommodated
during
quarter
ending
Dec. 31.
Maturities.
Within
15 days.
From 16 to
30 days.
From 31 to
60 days.
From 61 to
90 days.
Over 90
days.
Total bills
discounted.
120
38
45
10
346,861
243,663
$127,866
14;137
§233,040
41,509
§168,837
92,859
§643,011
5,505
31,219,615
397,673
776
225
23,915,992
1,584,194
4,230,874
3,505,734
1,740,722
34,977,516
122
233
55
192
9
311
14
37
17
61
2
45
2,908.440
4.947', 561
79,386,283
44,850,165
421,998
211,884
381,695
1,542,214
7,24i,539
814,254
1,342
590,457
235,644
505,390
2,396', 145
9,512
1,483,006
10,000
1,108,672
428,175
4.16,027
1,993,236
2,028
1,259,215
114,255
1,165,645
255,601
38,936
1,121,021
49.050
653,167
93,421
6,195,212
6,078,865
80,728,331
51,902,781
60,590
11,451,181
219,018
3,373,387
5,230,154
5,321,608
3,376,841
156,635,978
36
4
958
180
139,333,988
7
12
32
30
551
1
2
11
4
88
225,000
180,000
295,000
23,081,853
998
94,493
53,452
8,745
14,855
82,539
288,094
258,685
492,829
449,168
1,109,337
673,391
793,892
107,137
319,493
1,273,060
295,000
26,107,641
632
106
23,781,853
598,111
1,406,176
946,931
1,369,260
28,102,331
48
28,558,195
293,000
i6,43i,9i2
149,945
50,000
2,232,208
315,439
2,265,589
7,818,369
222,159
25,000
1,252,856
639,220
1,651,088
102,839
206,891
31,221
82,339
8,320
52,070,236
909,417
95,000
9,221,724
3,016,312
6,919,017
15,445,093
11,608,692
431,610
72,231,706
$41,152,127 §25,612,017 $31,199,048 $79,506,099
39,828,186
81,192,474
5,175,645,889 12,126,829
5,189,594 19,156,046
7,424,897
61,549,845
13,627,137
15,536,756
89,107,869
19,207,623
5,578,056
7,522,769
3,229,538
184,558,887
6,339,465
3,817,460
50,765,076
3,626,186
22,961,478
325,215,080
12,683,974 28,848,622
8,463,883
80,665,052
8,837,051 10,085,484
4,230,874
3,505,734
23,915,992
1,584,194
5,230,154
5,321,608
139,333,988
3,373,387
1,406,176
948,931
23,781,853
598,111
37,077,839
7,688,472 15,445,093 11,608,692
$933,353
8178,402,644
5,308,793,378
93,323,707
137,510,010
200,912,370
64,688,858
396,143,753
108,168,147
34,977,516
156,635,978
28,102,331
72,231,706
1
7
65
10
85
24
14
1
18
10
83
19
4,379,675
1,722,437
2,124,532
5.158,921
37,422
20,000
1,325,764
256,877
869,488
547
110
37,077,839
7,668,472
272
RECAPITULATION.
No. 1—Boston
No.2-NewYork
No. 3—Philadelphia....
No. 4—Cleveland
No. 5—Richmond
No. 6—Atlanta
No. 7—Chicago
No. 8—St. Louis
No. 9—Minneapolis
No. 10—Kansas City....
No. 11—Dallas
No. 12—San Francisco..
670
635
764
530
392
1,100
479
776
958
632
547 i
Total for 3 months ending Decomber,1917
Percent
7,882 !
Total for 3 months ending December, 1916
Total for 3 months ending December, 1915
7,627 I
7,646 !
Total for year ending Dec. 31,1917
Total for year ending Dec. 31.1916
Total for year ending Dec. 31,1915
7,882 I
7,627 !
7,646 I
I
163
283
177
79
166
176
504
92
225
180
106
110
167,005,889
2.5
259,539,930
3.8
75,445,200
7,716,900
7,861,300
16,641,000
7,996,000
17,722,900
8,129,297,853 | 181.023,663
115,053,100
26,509,200
272,359,039
34,422,900
57,837,400
356,996,455
41,576,600
57,322,400
2,261 6,232,769,497
91.9
5,615
1,788
1,920
105,972,279
1.6
3,325
30,625
23,120
140,671
6,436,599
116,677
1,740,722
3,376,841
1,369,260
431,610
14,602,803 6,779,890,398
0.2
100.0
2,180,500
6,651,700
93,483,000
48,732,500
29,130,950 8,968,807,965
16,817,900
207,870,500
19,684,000
161,353,000
138
FEDEBAL BESBEVE BULLETIN*.
FEBRUARY 1,1918.
Acceptances bought in open market and held by Federal Reserve Banks as per schedules on file with the Federal^ Reserve Board,
or as reported by the Federal Reserve Banks on dates specified^ distributed by classes of accepting institutions.
Bankers* acceptances.
Date.
Feb. 22
Apr. 5
May3......
June7
July3
Aug. 2 . . . .
Sept. 6
Oct.4
Nov. 1.
Dec.6....
1915.
1916.
Jan. 3
Feb.7
Mar.6
Apr.3
Mayl
June 5
July3.
Aug.7
Sept. 4
Oct.2..
Nov.6....
Dec.4
Jan. 1
Feb. 5
Mar.5
Apr. 2
May7
June 4
July 14-16
July 31
Aug. 31
Sept. 29
Oct. 31
Nov. 30
Dec. 31
,
....
Member
banks.
Nonmember Nonmemtrust
ber State
companies.
banks.
$93,000
3,653,000
5,038,000
5,242,000
4,342,000
5,350,000
6,087,000
9,000,000
8,477,000
12,311,000
$7,820,000
8,189,000
4,516,000
5,267,000
5,407,000
6,305,000
4,898,000
4,331,000
5,172,000
$10,000
10,000
10,000
15,494,000
15,681,000
17,182,000
21,000,000
24,875,000
24,680,000
32,989,000
39,695,000
41,413,000
37,798,000
37,770,000
47,748,000
66,803,000
50,361,000
53,288,000
43,979,000
49,192,000
69,262,000
108,597,000
112,433,000
94,597,000
131,997,000
150,301,000
171,723,000
227,717,000
Private
banks.
Foreign
bank
branches
and agencies.
Total.
Trade acceptances
bought in
open
market.
Total acceptances.
20,000
20,000
132,000
253,000
275,000
$110,000
110,000
192,000
161,000
352,000
472,000
343,000
204,000
396,000
$93,000
11,593,000
13,347,000
9,960,000
9,770,000
11,129,000
12,884,000
14,373,000
13,265,000
18,154,000
$93,000
11,593,000
13,347,000
9,960,000
9,770,000
11,129,000
12,884,000
14,373,000
13,265,000
18,154,000
7,160,000
7,876,000
8,670,000
13,573,000
15,400,000
17,029,000
18,921,000
19,060,000
20,356,000
21,782,000
29,474,000
33,232,000
362,000
336,000
408,000
473,000
585,000
644,000
471,000
738,000
726,000
712,000
1,014,000
1,630,000
822,000
1,456,000
1,781,000
3,262,000
3,430,000
7,007,000
11,830,000
13,940,000
12,491,000
9,944,000
12,147,000
16,069,000
23,838,000
25,349,000
28,041,000
38,308,000
44,290,000
49,360,000
64,211,000
73,433,000
74,986,000
70,236,000
80,405,000
98,679,000
$489,000
462,000
722,000
1,477,000
2,208,000
3,422,000
4,225,000
3,673,000
2,306,000
2,378,000
4,487,000
23,838,000
25,838,000
28,503,000
39,030,000
45,767,000
51,568,000
67,633,000
77,658,000
78,659,000
72,542,000
82,783,000
103,166,000
34,625,000
23,511,000
32,518,000
20,328,000
19,650,000
27,611,000
30,390,000
43,107,000
33,273,000
14,987,000
3,147,000
5,338,000
8,163,000
1,502,000
972,000
1,090,000
689,000
236,000
584,000
3,333,000
2,564,000
2,312,000
2,193,000
1,307,000
753,000
3,179,000
18,224,000
13,775,000
20,581,000
16,830,000
19,177,000
21,077,000
38,082,000
20,782,000
18,086,000
21,708,000
21,083,000
18,201,000
20,137,000
121,154,000
88,759,000
107,837,000
82,026,000
88,349,000
118,773,000
184,785,000
179,973,000
149,637,000
173,171,000
177,991,000
199,178,000
266,853,000
4,585,000
4,041,000
2,535,000
1,144,000
1,679,000
3,022,000
4,660,000
4,242,000
4,952,000
6,942,000
6,224,000
6,275,000
6,383,000
125,739,000
92,800,000
110,366,000
83,170,000
90,028,000
121,795,000
189,445,000
184,215,000
154,589,000
180,113,000
184,216,000
205,453,000
273,236,000
1917.
$140,000
354,000
200,000
94,000
239,000
3,805,000
1,087,000
1,369,000
2,286,000
2,153,000
3,163,000
7,657,000
Amounts
139
FEDERAL RESERVE BULLETIN.
FEBRUARY 1,1918.
of bills discounted and acceptances and warrants bought by each Federal Reserve Bank during Decemberf 1917,
distributed by maturities.
15-day maturities.
Banks.
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
Discounts.
Acceptances.
$20,137,602
192,834,756
32,125,650
38,051,343
112,143,939
18,660,328
116,649,863
36,715,274
3,890,704
$101,294
1,613,396
421,399
1,070,000
Warrants.
Total.
$61,000
$20, 238,
194, 448,
32, 125,
38, 051,
112, 565,
19, 791,
116, 649,
36, 773,
3,959r
33,,698,
57,875
33,698,605
Total.
Percent
2,117,832
9,206,883
250,000
2,124,562
616,232,779
5,707,389
30-day maturities.
61,000
Discounts. Acceptances. Warrants.
$14,922,952
7,521,946
6,206,425
13,084,184
1,852,264
1,333,661
3,737,095
3,927,090
446,026
2,039,877
37
144,134
111 331,445 3,731,567
622,001,168
58.1
58,947,221
60-day maturities.
$253,173
4,597,042
234,544
1,277,479
2,042,777
954,237
59,218
189,529
2,108,506
5,630
750,000
2,571,795
15,043,930
Total.
$25,210
$15,176,125
12,118,988
6,440,969
14,361,663
3,895,041
2,313,108
3,796,313
4,116,619
2,556,532
2,045,507
894,134
6,303,362
25,210
74,018,361
6.9
90-day maturities.
Banks.
Discounts.
Boston
New Y o r k . . . .
Philadelphia.
Cleveland
Richmond...
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas.
Total.
Percent
Acceptances. Warrants.
$25,837,504
27,316,976
2,897,808
5,913,406
2,444,607
2,856,890
7,961,592
5,258,450
1,406,385
2,634,596
312,127
9,718,057
$1,734,229
25,675,107
787,040
1,568,573
2,188,588
2,085,999
247,477
533,552
1,319,410
8 091
1,864,798
4,153,504
$165
94,558,398
42,166,368
165
Banks.
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas C i t y . . .
Dallas
San Francisco.
Total....
Percent
Discounts. Acceptances.
$233,060
4,313
8,047
32,842
2,110,221
43,493
1,011,009
1,847,892
745,403
240,221
Warrants.
Discounts.
$27,571,733
52,992,083
3,684,848
7,481,979
4,633,195
4,943,054
$44,947,757
34,559,297
3,795,492
6,577,941
3,082,714
1,782,415
6,555,668
4,038,398
1,685,870
1,990,031
225,497
6,981,795
$10,518,235
75,030,029
4,806,558
5,177,934
2,646,703
1,719,987
4,541,136
1,261,750
1,818,465
3,051
1,934,796
2,843,725
$2,779
$55,465,992
109,589,326
8,602,050
11,755,875
5,729,417
3,505,181
11,096,804
5,300,148
3,504,335
1,993,082
2,160,293
9,825,120
116,222,875
112,302,369
2,779
228,527,623
21.8
5,792,002
2,725,795
2,642,687
2,176,925
13,871,561
Over 90-day maturities.
Acceptances. Warrants.
Total.
136,724,931
12.8
Total.
Total.
Discounts.
Acceptances.
Warrants.
Per cent.
Total.
$119,076,306
$623,500 $106,078,875 $12,997,431
369,148,549
262,232,975 106,915,574
170,000 45,025,375 5,998,142
51,023,517
72,338,199
687,339 63,631,187 8,707,012
126,981,038
158,047 119,531,571 7,449,467
35,042 24,666,136 5,830,223 $91,354 30,587,713
$2,200
141,969,156
2,217,107 137,014,439 4,954,717
"166*886'
52,692,890
667,479
710,972 49,982,705 2,710,185
13,866,200
110,962
8,439,994 5,426,206
1,121,971
16,772
1,847,892 42,211,001
42,227,773
8,448,781
3,544,993 4,799,594 104,194
849,597
104,194
42,142,209
810,321 29,878,523 12,263,686
570,100
$390,500
170,000
683,026
150,000
6,276,501 2,848,953
106,394
9,231,848
0.9
892,237,774 178,069,009
Total.
195,548 1,070,502,331
100.0
AcWar- Total.
Discept- rants.
counts. ances.
89.1
71.0
88.2
88.0
94.1
80.6
96.5
94.9
60.9
99.9
42.0
70.9
10.9
29.0
11.8
12.0
5.9
19.1
3.5
5.1
39.1
0.1
56.8
29.1
0.3
16.6
0.1
1.2
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
140
FEDERAL EESEBVE BULLETIN.
FEBBUABY 1,191$.
Maturities of discounts, acceptances, and municipal warrants held by each Federal Reserve Bank on Friday, Dec, 28, 1917.
[In thousands of dollars, i. e., 000 omitted.]
1 to 15 days.
Banks.
Bills discounted.
Acceptances
bought.
16 to 30 days.
Municipal
warrants.
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
13,047
141,907
20,877
23,767
21,232
10,374
70,316
21,710
2,765
19,904
1,665
7,809
981
13,631
2,135
5,177
2,534
1,370
1,493
819
2,284
1,408
1,233
7,258
Total.
Percent
355,373
40,321
Acceptances
bought.
Bills discounted.
Total.
Bills discounted.
Boston.
New York.....
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
Total.
Percent
Acceptances
bought.
28
7,804
10,804
2,877
4,573
1,902
1,932
14,385
4,681
1,140
2,736
105
4,428
1,204
22,043
6,823
6,812
4,494
703
1,649
1,809
3,129
9
6,947
5,555
10
2,645
16,034
6,490
4,269
2,745
7,052
9,983
116
395,810
41.4
57,367
61,177
10
118,554
12.4
715
67,700
5,019
7,126
4,113
3,868
1,227
3,076
2,037
10
6,185
4,056
175,006
105,132
511
141
652
Over 90 days.
Banks.
Boston...
New York
Philadelphia...
Cleveland.....
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas C i t y . . .
Dallas
San Francisco.
Total.
Percent
9,008
32,847
9,700
11,385
61 to 90 days.
Municipal
warrants.
8,862
78,859
13,133
12,587
5,342
2,728
12,289
10,753
6,776
8,504
5,774
9,399
Bills discounted.
Total.
9,577
147,070
18,152
19,713
9,455
6,737
13,516
13,829
8,813
8,514
11,959
13,455
36,218
23,415
2,634
3,669
1,619
1,179
5,346
2,592
1,384
1,628
439
3,851
280,790
29.3
83,974
Acceptances
bought.
Municipal
warrants.
994
4,293
1,676
349
1,981
123
Total.
Total.
5
12
47
4,189
76
1,426
2,042
994
299
65,931
254,985
39,521
44,601
30,107
16,260
106,525
39,812
13,491
34,814
8,873
25,786
8,341
148,125
18,417
22,026
13,038
6,935
8,662
7,380
7,799
1,425
14,368
18,850
74,272
403,621
57,948
66,634
43,145
23,497
115,187
47,192
21,315
36,239
23,391
44,636
88.8
63.2
68.2
66.9
69.8
69.2
92.5
84.4
63.3
96.1
38.0
57.8
11.2
36.7
31.8
33.1
30.2
29.5
7.5
15.6
36.6
3.9
61.4
42.2
9,090
680,706
275,366
957,077
100.0
71.1
28.8
104
152,833
16.0
Percentages.
Accept- Municipal
ances
warbought. rants.
8,986
41,659
68,166
7,074
6,580
3,516
2,296
9,639
4,268
1,733
1,628
442
5,832
123
Bills
discounted.
104
Total.
5,441
44,751
4,440
2,911
1,897
Bills Accept- Municdisipal
ances
Total.
count- bought.
wared.
rants.
76
1,426
2,042
890
299
Total.
14,028
155,538
23,022
28,951
23,766
11,772
71,809
22,529
5,074
21,310
2,944
15,067
31 to 60 days.
Banks.
Municipal
warrants.
511
10
7
25
'iho
1,005
Bills Accept- Municdisipal
count- ances
war- Total.
bought. rants.
ed.
0.1
1.3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
141
FEDERAL RESERVE BULLETIN.
FEBRUARY 1,1918.
Total investment operations, exclusive of purchases of United States certificates of indebtedness, of each Federal Reserve
Bank during the months of December, 1917 and 1916, and the year ending Dec. 28, 1917 and 1916.
Bills discounted for
members and
Federal Reserve Banks.
Federal Reserve Banks.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$106,078,875
262,232,975
45,025,375
63,631,187
119,531,571
24,666,136
137,014,439
49,982,705
,..
8,439,994
42,211,001
3,544,993
29,878,523
Total, December, 1917.
Total, December, 1916
Total, 12 months ending Dec. 31,1917
Total, 12 months ending Dec. 31,1916
892,237,774
63,716,000
1,968,807,965
207,870,500
Bills bought in open market.
Bankers' acceptances.
Trade ac-
$12,399,766
104,832,313
5,944,693
8,707,012
7,449,467
5,830,223
4,954,717
2,710,185
5,426,206
16,772
4,799,594
11,373,218
$597,665
2,083,261
53,449
890,468
174,444,166 3,624,843
64,946,600
1,924,900
1,051,807,580 30,947,981
369,762,300 16,332,700
Municipal warrants.
City.
Total.
$12,997,431
106,915,574
5,998,142
8,707,012
7,449,467
5,830,223
4,954,717
2,710,185
5,426,206
16,772
4,799,594
12,263,686
2 per
cent.
Boston...
New York
Philadelphia..
Cleveland
Richmond.
Atlanta
Chicago...
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
3 per
cent.
3£ per
cent.
$2,120
3,122,950
$399,750 10,448,300
1,000
42,900
5,539,400
Total.
$68,200
$91,354
104,194
104,194
2,944
2,600
263,059
4,087,100
Total.
December,
1917.
$2,120
3,122,950
10,448,050
1,000
$119,078,426
372,271,499
61,871,567
72,339,199
127,023,938
37,127,113
141,979,156
52,692,890
13,866,200
42,227,773
9,273,781
42,157,209
42,900
$10,000
775,000
15,000
$2,944
All
other.
68,200
16,200
788,748
936,500
195,548
3,404,000
16,821,566
90,686,0Q0
Total investment operations.
1-year
Treasury
notes.
4 per
cent.
820,210
178,069,009
124,404
3,385,200
66,871,500
1,082,755,561 15,769,759
386,095; 000 85,662,400
United States bonds and Treasury notes.
Federal Reserve Banks.
State.
6,539,400
10 000
825,000
15,000
50,000
Decem December, December,
ber,
1916.
1917.
1916.
$20,023,200
38,707,500
18,781,700
10,131,100
9,735,050
5,150,100
14,416,200
5,911,000
5,750,800
3,203,600
1 848 900
5,872,100
1,190,750 20,205,670
Total, December, 1917
10,000 21,406,420 1,091,908,751
Total, December, 1916
$5,249,750 $40,000
139,531,250
250,000
5,539,750
Total, 12 months ending Dec. 31,
13,997,200 188,540 45,787,610 21,562,319 7,069,000 88,606,316 10,156,699,812
1917
Total, 12 months ending Dec. 31,
741,401,680
48,128,100 3,918,880
4,403,200 300,000 56,750,180
1916
Per ct. Per ct.
10.9
14.3
34.2
27.8
5.6
13.5
6.6
7.3
7.0
11.6
3.4
3.7
13.0
10.3
4.8
4.2
1.3
4.1
2.3
1.3
3.9
4.2
100.0
100.0
United States securities held by each Federal Reserve Bank on Dec. 31,1917, distributed hy maturities.
United States bonds with circulation
privilege.
Federal Reserve
Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis...
Minneapolis.
Kansas City
Dallas
San Francisco
Total
per cent 3 per cent 4 per cent 3 per cent 3 per cent 3 per
2 per cent 2Panamas
1-year
cent
loan of
consols of
loan of conversion
of
bonds of Treasury loan of
1918.
1925.
1936-1938.
1946-47.
1961.
notes.
$750
50
.
United States bonds without circulation privilege.
6,400
915.100
640',600
862,500
100
323,050
155,850
450,900
428,750
15,784,050
1
$529,
1,255,
$50,000
$100
549,
467,200 2,653,660 $2,378,200
414,
237,000
21,000
10,
367,300 "2,"58i,"666" "i,'768,"666'
427,
1,153,
1,080,000
114,
16,260 1,199,180
206,250
838,
22,240
825,000
281,500
1,233,
1,412,600
7,563,840 I 5,177,450
$2,194,000
4,493,000
2,548,000
3,221,000
1,969,000
1,491,000
3,378,000
1,444,000
1,340,000
1,784,000
1,430,000
1,500,000
6,526,400 26,792,000
4 per cent U. S. cer3^ per
cent Lib- Liberty tificates of
loan of
indebtederty loan
ness.
of 1947. 1942-1947.
$80,000
411,150
249,850
2,027,000
42,900
215,900
i$118,992
3,470,150
6,302,800
320,750
41,450
1,509,200
$400
500
7,500
477,100
26,250
900
Total.
$2,922,742
$15,000,000 24,679,850
9,649,950
_.
28,050,000 39,539,010
I.
3,205,450
|.
•3,888,000
10,384,600
3,677,400
3,228,490
500
27,950
10,633,090
5,926,100
53,000
3,955,000
3,537,650 11,844,292 (43,050,500 121,689,682
Includes unpaid portion of Liberty Loan bonds sold to individual subscribers.
Total United States bonds with circulation privilege, $29,937,940. Total United States securities without circulation privilege, $91,632,750.
142
FEBRUARY 1,1918.
FEDEEAL 3ESEBVE BULLETIN.
RESOURCES AND LIABILITIES OF FEDERAL RESERVE BANKS.
Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve system at close of business on Fridays, Dec.
28, 1917, to Jan. 25, 1918.
RESOURCES.
[In thousands of dollars; i. e., 000 omitted.]
l
Gold coin and certificates in
vault:
Dec.28
,
Jan.4
Jan. 11
,
Jan. 18
Jan. 25
Gold settlement fund—Federal
Reserve Board:
Dec.28
Jan. 4
Jan. 11
Jan. 18
Jan. 25
Gold with foreign agencies:
Dec.28....
Jan.4..
Jan. 11
Jan. 18
Jan. 25....
Gold with Federal Reserve
agents:
Dec.28
Jan.4
Jan. 11
Jan. 18
Jan. 25
Gold-redemption fund:
Dec.28...
Jan.4
Jan. 11
Jan. 18
Jan. 25
Total gold reserves:
Dec.28
,
Jan.4
Jan. 11
Jan. 18
Jan. 25
Legal tender notes, silver, etc.:
Dec.28
.'
,
Jan. 4
,
Jan. 11
,..,
Jan. 18
Jan. 25
Total cash reserves:
Dec.28
Jan. 4
Jan. 11
.,
Jan. 18
,
Jan. 25
Bills discounted for members
and Federal Reserve Banks:
Dec.28
Jan. 4
Jan. 11
Jan. 18
Jan. 25
Bills bought in open market:
Dec.28
,
Jan.4
Jan. 11
,
Jan. 18
Jan. 25
United States Government
long-term securities:
Dec.28
Jan.4
Jan. 11
,
Jan. 18
,
Jan. 25,
,
United States Government
short-term securities:
Dec.28
,
Jan. 4
,
Jan. 11
Jan. 18
,
Jan. 25
ChiPhila- Cleve- Richdelphia. land. mond. Atlanta. cago.
New
York.
19,900
19,427
16,472
14,772
13,865
305,660
312,564
318,465
317,072
18,322
18,187
18,614
18,759
18,790
29,202
26,658
25,434
23,146
20,382
31,774
25,621
26,372
26,617
26,231
499,917
480,072
478,839
477,301
472,012
16,977
10,506
25,284
37,425
34,290
20,854
21,082
43,519
60,689
97,111
39,101
29,687
38,993
30,827
37,196
37,168 22,097 13,407 54,674 17,884 20,287 37,206 24,223 13,642
50,030 25,171 21,295 58,177 21,314 17,409 38,461 23,407 22,148
28,179 22,684 15,833 78,270 21,669 12,998 30,314 20,209 25,570
45,512 14,890 16,434 77,329 24,076 9,512 23,335 16,310 26,893
40,184 12,367 16,893 39,014 26,656 14,554 24,635 19,368 25,942
317,520
338,687
361,522
383,232
388,210
3,675
3,675
3,675
3,675
3,675
18,112
18,112
18,112
18,112
18,112
3,675
3,675
3,675
3,675
3,675
4,725
4,725
4,725
4,725
4,725
1,837
1,837
1,837
1,837
1,837
1,575
1,575
1,575
1,575
1,575
7,350
7,350
7,350
7,350
7,350
2,100
2,100
2,100
2,100
2,100
2,100
2,100
2,100
2,100
2,100
2,625
2,625
2,625
2,625
2,625
1,838
1,838
1,838
1,838
1,838
2,888
2,888
2,888
2,888
2,888
52,500
52,500
52.500
52;500
52.500
37,897
41,071
42,424
43,407
44,354
250,599
250,595
227,052
236,700
236,467
56,946
63,884
63,102
68,376
64,916
55,410
57,794
59,693
61,850
64,610
31,602
26,546
26,478
26,360
26,305
49,821
47,701
50,053
49,226
47,575
124,400
131,403
129,356
118,133
120,514
32,366
31,241
31,441
35,308
34,882
31,920
32,910
35,699
37,621
37,522
42,052
42,025
44,950
48' 422
48,369
25,037
25,037
24,121
23,892
22,181
43,801
46,984
49,957
49,432
46,134
781,851
797,191
784,326
796,727
793,829
2,000
2,000
2,000
1,987
2,000
10,000
10,000
10,000
10,107
10,000
1,500
1,500
1,500
1,500
1,500
99
28
92
48
61
485
433
379
298
251
1,099
1,110
1,183
1,231
1,483
615
614
668
742
815
930
908
901
878
1,037
1,122
1,159
507
507
484
478
465
1,218
1,236
1,240
1,258
1,253
24
34
152
38
81
19,345
19,270
19,643
19,710
19,956
80,449
76,679
89,855
101,266
98,184
622,871
605,449
611^247
644,073
678,762
119,544
116,933
123,884
121,137
126,077
126,604
139,235
118,123
135,281
129,942
62,227
60,168
57,587
49,645
47,017
71,642
77, 783
74, 993
74,928
74, 057
218,924
235,501
246,903
234,833
58,276
61,958
64,045
67,406
70,000
68,129
66,839
65,272
70,516
83,978
85,074
80,042
76,360
77,484
64,557
63,136
58, 373
53,401
53, 950
92,129
97,675
104,939
105,868
101,276
1,671,133
1,687,720
1,696,830
1,729,470
1,726,507
3,960
3,729
4,795
5,148
5,346
40,784
35,000
36,347
37,439
37,901
1,149
1,789
2,404
2,611
2,243
210
274
780
1,162
1,327
185
235
196
198
176
444
434
781
779
871
771
1,301
2,620
3,594
4,462
634
889
1,419
1,707
1,336
365
457
510
582
627
53
54
90
714
787
870
1,203
1,445
391
360
428
49,635
45,310
51,201
54,837
56,252
84,409
80,408
94,650
106,414
103,530
663,655
640,449
647,594
681,512
716,663
120,693
118,722
126,288
123,748
128,320
126,814
139,509
118,903
136,443
131,269
62,412
60,403
57,783
49,843
47,193
72,086
78,217
75,774
75,707
74,928
219,695
236,802
249,523
238,427
203,704
58,910
62,847
65,464
69,113
71,336
70,297
68,586
67,349
65,854
71,143
84,031
85,120
80,130
76,414
77,574
65,271
63,923
59,243
54,604
55,395
65,931
57,321
51,210
50,628
52,844
254,985
242,618
232,430
227,314
222,620
39,521
32,963
29,156
31,163
33,810
44,601
41,012
33,672
37,573
49,360
30,107
27,086
23,528
33,061
32,254
16,260
14,687
15,302
12,695
11,348
106,525
94,112
80,889
106,170
110,924
39,812
34,299
28,611
29,966
13,491
12,764
12,220
12,505
13,140
34,814
35,484
32,873
29,518
32,545
8,341
9,633
5,832
6,350
9,307
148,125
152,377
150,982
155,570
168,278
18,417
18,384
17,045
14,269
14,179
22,026
18,968
17,300
13,397
12,978
13,038
13,829
13,780
12,586
13,403
6,373
2,424
6,750
6,824
8,662
8,370
8,578
9,002
8,521
7,380
7,416
7,384
6,241
5,930
610
610
610
610
610
1,309
5,167
5,152
1,305
5,120
7,467
6,566
5,417
5,541
5,307
8,268
8,268
8,266
8,265
1,221
1,231
1,231
1,231
1,231
2,547
2,397
1,771
1,646
1,747
7,007
7,007
7,007
7,007
7,007
2,194
2,194
2,194
4,344
4,344
32,113
68,113
52,996
15,213
2,648
2,548
3,300
3,025
4,023
31,221
35,271
43,771
39,771
26,271
1,491
1,491
1,491
1,491
1,491
3,368
3,378
3,378
5,878
5,878
6,206
6,181
6,260
6,257
5,740
6,102
6,349
6,462
6,531
31,885
37,957
31,259
31,279
31,549
St.
Minne- Kansas
Louis. apolis. City. Dallas.
San
Francisco.
Boston.
4,996
6,373
7,927
5,021
5,474
14,757
14,832
15,005
14,917
15,181
1,588
1,456
1,669
1,500
1,390
12,241
11,618
10,965
10,103
9,310
Total.
92,495 1,720,768
98,044 1,733,030
105,330 1,748,031
106,228 1,784,307
101,704 1,782,759
8,873 25,786
8,997 24,470
8,635 22,139
8,649 25,826
9,499 29,352
680,706
625,813
570,665
603,488
627,662
7,799
6,425
4,973
2,687
2.226
1,425 14,388 18,850
544 13,623 15,416
32 13,563 16,817
35 13,531 17,386
35 13,263 18,968
275,366
271,338
258,710
257,804
273,912
2,233
2,233
2,233
2,233
2,233
1,888
1,888
2,004
2,214
3,617
8,849
8,849
8,862
8,862
8,862
4,496
4,496
4,496
4,541
4,071
2,455
2,455
2,455
2,455
2,455
48,350
51,167
49,506
45,911
50,525
1,444
1,444
1,444
1,444
1,444
1,341
1,938
1,853
1,678
2,322
1,784
5,784
5,784
5,784
5,784
1,430
2,430
2,430
2,430
2,430
1,500
1,500
1,500
1,500
1,500
58,883
92,058
137,227
122,310
72,669
143
FEDERAL RESERVE BULLETIN*.
FEBRUARY 1,1918.
Resourses and liabilities of each Federal Reserve Bank and of the Federal Reserve system at dose of business on Fridayst Bee.
28, 1917, to Jan. 25, 1918—Continued.
E ESOUECES—Continued.
[In thousands of dollars; i. e., 000 omitted.]
Boston.
Municipal warrants:
Dec. 28
All other earning assets:
Jan.4
Jan. 11
Jan. 18..
!
Jan. 25
Total earning assets:
77,076
Dec. 28
69,758
Jan.4
59,846
Jan. 11
61,932
Jan. 18....,
67,105
Jan. 25
Due from other Federal Reserve
Banks—net:
Dec. 28
Jan. 4
2,361
Jan. 11
1,399
Jan. 18
Jan. 25
Uncollected items:
19,012
Dec. 28...
22,136
Jan. 4..
21,933
Jan. 11
23,570
Jan. 18
16,395
Jan. 25
Total deductions from gross deposits:
19,012
Dec. 28
30,472
Jan.4.
24,294
Jan. 11
24,969
Jan. 18
16,395
Jan. 25
5 per cent redemption fund
against Federal Reserve bank
notes:
Dec. 28...
Jan.4
Jan. 11
Jan. 18
Jan. 25
All other resources:
Dec. 28..
Jan.4
1
Jan. 11
Jan. 18
Jan. 25
Total resources:
180,497
Dec. 28
180,638
Jan. 4....
178,790
Jan. 11
193,315
Jan. 18
187,030
Jan. 25
New
York.
511
Phila- Cleve- RichChidelphia. land. mond. Atlanta. cago.
10
511
511
511
511
10
413,423
432,786
457,188
437,696
411,742
68,063
60,441
54,918
53,998
57,329
302
106,123
103,519
103, Oil
99,007
96,874
150
1,267
1,265
773
707
4
50
56
66
5,167
5,063
4,224
4,902
46,335 27,535 125,562 50,869
44,145 25,802 113,635 46,165
40,520 21,798 100,504 40,435
23,250
38, 771
48, 923 22,018 .133,981 39,853
24,544
23,973
22,050
20.085
22,308
46,872
50,661
47,551
44,199
47,226
29,317
30,813
30,389
29,924
29,970
48,591
43, 845
42, 961
47,223
52,341
1,064,310
1,045,543
1,021,171
1,033, 737
1,029,670
5,692
12,163
***935 8,964
5,274
14,573
1,065
2,218
932
5,831
2,659
2,426
5,386
8,155
6,087
2,417
1,792
1,961
11,976
145,244
128,229
135,818
132,505
16,538 9,344 23,615
19,198 10,468 19,967
18,080 10,948 25,194
18,436 14,212 32,043
17,028 10,236 27,728
15,307
18,668
16,152
18,745
18,465
12,525
12,698
12,510
17,453
13,106
301,067
302,007
306,593
381,708
323,703
26,274 15,307 18,249
22,393 18,668 23,545
30,580 16,152 12,510
40,198 21,162 17,453
33,815 20,257 15,067
313,043
347,251
334,822
417,526
356,208
854
810
768
652
606
1,651
2,112
75,975
77,477
70,302
83,895
75,298
32,856
32,189
41,242
46,772
38,917
22,180
20,717
19,436
23,089
21,653
5,596
4,045
19,784 17,090
12,931 17,384
14,872 20,541
19,313 22,805
18,609 20,496
75,975
77,477
70,302
83,895
75,662
32,856
44,131
41,242
53,971
38,917
31,396
20, 717
30,001
44,027
31,983
19,784
12,931
14,872
24,909
22,654
19,202
17,384
21,476
22,805
20,496
36,841
38,174
35,383
61,375
45,772
6,078
8,836
8,128
4,761
5,164
42,533 22,616 10,4.09
50,337 28,034 12,686
44,347 26,208 11,880
23,197 20,043
60,345 22,192 10,236
400
400
400
400
400
221,612
223,294
222,448
231,717
224,566
264,333
263,745
251,915
279,477
260,126
Total.
25
9,216
1,153,053
1,150,712
1,175,084
1,203,103
1,204,067
San
Dallas. Francisco.
960
1,000
1,001
1,003
11,942
10,565
20,938
10,330
City.
773
763
467
280
12
142
364
St.
MinneLouis. apolis.
287
239
397
239
130
337
117
82
95
71
492
128,818
117,718
113,572
123,980
118,900
119,160
121,520
119,130
121,857
117,513
388,282
400,777
394,374
433,777
398,030
132,711
137,046
132,107
131,081
133,381
105,911
105,245
101,279
105,982
103,687
157,577
158,574
158,661
161,211
159,015
9,067
9,114
9,121
9,142
9,170
3,474
3,475
3,475
3,475
3,481
2,617
2,620
2,642
2,643
2,651
3,396
3,397
3,396
3,398
3,396
316
1,005
5,724
10,847
137
137
137
137
137
537
537
537
537
537
720
661
1
178
40
7
2,813
537
519
379
201
110,752
113,541
105,921
105,827
105,759
159,335
165,612
160,841
170,911
169,112
3,101,471
3,126,898
3,105,080
3,236,486
3,169,375
2,795
2,795
2,795
2,799
2,798
4,163
4,206
4,206
4,203
4,217
70,442
70,825
71,603
71,938
72,439
LIABILITIES.
Capital paid in:
18,684 5,887 8 026 3,664 2,811
5,858
Dec.28..
5,859
18,696 6,142 8 038 3,664 2,819
Jan.4
5,858
18,718 6,773 8 068 3,694 2,857
Jan. 11....
5,906
18,978 6,775 8 088 3,697 2,858
Jan. 18
5,929
19,212 6,775 8 221 3,736 2,855
Jan. 25
Surplus:
40
649
116
75
Jan. 4
40
116
649
75
Jan. 11
40
116
649
75
Jan. 18
116
40
649
75
Jan. 25
Government deposits:
3,278
4,704
8,838
5,638
30,797
6,798
Dec.28
6,637
21,764 10,354 25,212 2,821 4,779
Jan.4
1,036
12,216 2,772 9,480
2 617 3,064
Jan. 11
25,374
21,483 19,361 45,094 14,038 5,222
Jan. 18
5,217
16,227
10,970
20,899
6,134
5,280
Jan. 25
Due to members—reserve account:
79,215 663,613 84,382 107,946 43,721 38,176
Dec.28
77,666 643,590 88,936 111,237 44,265 38,598
Jan.4
80,710 671,696 91,234 112,764 44,941 39,178
Jan. 11
70,856
645,384 80,622 104,685 40,808 38,671
Jan. 18
79,295 680,314 84,061 110,521 42,979 37.696
Jan. 25
i Difference between net amounts due from and net amounts
a Overdraft.
216
216
216
216
38
38
38
38
1,134
1,134
1,134
1,134
6,829 5,874 8,064 8,943 6,334 12,116
9,891 4,199 9,780 11,556 10,657 13,356
3,681 3,247 5,502 4,841 6,319 6,315
45,446 8,874 11,814 13,189 8,110 21,824
13,603 . 11,619 7,943 11,038 10,274 16,457
189,789 49,391 40,314 68,968 44,980
170,793 55,546 39,389 69,199 43,891
178,270 53,427 39,418 74,564 43,670
175,295 49,954 38,212 70,019 42,878
173,351 49,015 38,814 73,366 42,147
due to other Federal Reserve Banks,
62,671
66,120
68,610
64,192
69,184
108,213
131,006
57,856
239,829
135,691
1,453,166
1,449,230
1,498,482
1,421,576
1,480,743
144
FEDERAL JEtESBBVE BULLETIN.
FEBRUARY 1,1918.
Resources and liabilities of each Federal Reserve Bank and the Federal Reserve system at close of business on Fncays, Dec.
28, 1617; to Jan. 25, 1918.
LIABILITIES-Continued.
[In thousands of dollars; i. e., 000 omitted.]
Phila- Cleve- RichNew
ChiBoston. York.
delphia. land. mond. Atlanta. cago.
Collection items:
14,861
Pec 28
Jan 4
. • •. - 15,960
15,624
Jan 11
16,244
Jan. 18
12j 480
Jan 25
Due to other Federal Reserve
Banks—net:
606
Dec 28
jan 4
Jan. 11»
Jan 18
7 832
Jan. 25
Other deposits, including foreign Government credits:
Pec 28
Jan. 4
Jan 11
.
Jan. 18 . „
Jan. 25
Total gross deposits:
Dec. 28...
101,480
100,263
Jan. 4
97,370
Jan. 11.
112,474
Jan. 18
Jan 25
104,854
Federal Reserve notes in actual
circulation:
Pec 28
72,214
74,246
Jan 4
Jan. 11
75,308
74,682
Jan 18
Jan 25
75,872
Federal Reserve bank notes in
circulation—net liability:
Dec. 28
Jan. 4
Jan. 11
Jan. 18
Jan. 25
All other liabilities:
Pec. 28
945
Jan.4
195
179
Jan. 11
178
Jan. 18
300
Jan. 25
Total liabilities:
Dec. 28
180,497
180,638
Jan. 4
178,790
Jan. 11
193,315
Jan. 25
18
187,030
Jan.
40,982
43,071
55,441
66,244
55,906
27,076
24,428
27,617
32,990
29,025
9,085
5,340
7,095
25,289
4,343
14,551 14.144
13,912 I ii'.O22
15,274 11,664
16,175 14,073
15,206 12,792
7,909
10,681
11,137
13,836
11,675
5,816
1,382
728
760
4,014
676
13,512
14,101
13,359
11,114
12,840
109
69
104
70
231
5,305
3,829
4,379
4,075
3,573
12,549
10,507
10,701
10,409
7,551
8,747
9,582
6,699
6,472
5,830
720
28
336
254
225
2 084
12 150
13,440
13,496
24,809
32,275
21,582
24,952
21,542
20,584
18,793
San
St. Minne- Kansas
Louis. apolis. City. Dallas. Francisco.
i.670
52
4
4
3
3
2,930
4,013
3,280
2,818
2,580
187
409
319
299
111
7
31
11
13
28
28
25
21
21
21
10,471
10,604
9,636
9,512
9,284
Total.
191,689
192,649
203,073
221,728
194,955
207
209
2,506
2,603
3,080
2,746
2,448
17,969
20,594
20,315
30,779
37,697
734,668
727,205
759,944
783,209
784,722
121,439
123,718
122,299
132,973
126,140
153,403
154,444
137,622
166,024
146,857
66,959
59,490
56,716
68,919
61,905
50,841
54,822
53,383
57,986
54,879
201,130
209,649
206, 773
244,143
208,327
68,964
74,255
70,352
70,241
73,585
53,690
53,029
49,310
54.114
52; 028
90,488
91,287
90,127
93,638
91,976
60,781
64,158
57,024
57,460
58,251
87,764
92,683
87,848
98,483
97,373
1,771,037
1,793,479
1,779,726
1,913,912
1,849,086
396,970
402,900
394,466
398,610
397,462
93,643
93,229
93,218
91,823
91,430
102,221
101,225
106,115
105,282
104,756
58,195
54,448
53,046
51,248
53,143
65,508
63,839
62,850
60,975
59,739
178,085
181,798
178,199
180,276
180,165
60,273
59,146
58,054
57,142
56,061
49,604
49,543
49,266
49,172
48,930
55,299
55,585
56,817
55,852
55,278
47,176
46,523
46,073
45,510
44,617
67,300
68,723
68,787
68,225
67,481
1,246,488
1,251,205
1,242,199
1,238,797
1,234,934
8,000
8,000
8,000
8,000
8,000
2,731
1,262
1,307
1,657
2,022
643
205
158
146
221
683
38
110
103
292
1,153,053
1,150,712
1,175,084
1 203 103
1,204,067
221,612
223,294
222,448
231 717
264,333
263,745
251,915
279; 477
260,126
Jj^jri y OOO
152
170
226
223
254
15
23
15
40
394
305
321
325
365
65
29
58
95
41
5,504
2,255
2,418
2,705
3,782
388,282
400,777
394,374
433,777
398,030
132,711
137,046
132,107
131,081
133,381
105,911
105,245
101,279
105,982
103,687
157,577
158,574
158,661
161,211
159,015
110,752
113,541
105,921
105,827
105,759
159,335
165,612
160,841
170,911
169,112
3,101,471
3,126,898
3,105,080
3,236,486
3,169,375
65
128,818
117,718
113,572
123,980
118,900
119,160
121,520
119,130
121,857
117,513
8,000
8,000
8,000
8,000
8,000
• 108
145
FEDERAL RESERVE BULLETIN.
FEBRUARY 1,1918.
FEDERAL RESERVE NOTES.
Federal Reserve note account of each Federal Reserve Bank at close of business on Fridays, Dec. 28, 1917, to Jan. 25, 1918.
[In thousands of dollars; i. e., 000 omitted.]
Federal Reserve notes received
from agent—net:
Dec. 28
Jan.4....
Jan. 11
.,
Jan. 18
;•....
Jan. 25
Federal Reserve notes held by
banks:
Dec. 28..
Jan, 4
„
Jan. 11
PfJan. 1 8 . . . . . . . . .
Jan. 25
Federal Reserve notes in actual
circulation:
Dec. 28...
Jan. 4
Jan. 11
Jan. 18
Jan. 25
Gold deposited with or to credit
of Federal Reserve agent:
Dec. 28
Jan.4
Jan. 1 1 . . . . . . . .
Jan. 18
Jan. 2 5 . . ,
Paper delivered to Federal Reserve agent:
Dec. 28..
Jan.4....
Jan. 11
Jan. 18
Jan. 25
San
Minne- Kansas
St.
Louis. apolis. City. Dallas. Fran-
Total.
51,016
51,006
50,795
50,967
50,868
58,062
57,883
61,347
61,282
59,872
47,727
47,116
46,245
45,788
44,873
77,088
78,561
78,535
80,228
1,341,752
1,366,335
1,368,148
1,373,105
1,373,622
1,590
1,592
1,784
2,373
2,278
1,412
1,483
1,529
1,795
1,938
2,763
2.298
4,530
5,410
4,594
551
593
172
278
256
6,605
8,365
9,774
10,310
12,757
95,264
115,130
125,949
134,308
138,698
178,085
181, 798
178,199
180,276
180,165
60,273
59,146
58,054
57.142
56,061
49,604
49,543
49,266
49,172
48,930
55,299
55,585
58,817
55,852
55,278
47,176
46,523
46,073
45,510
44,617
67,300 1,246,488
68,723 1,251,205
68,787 1,242,199
68,225 1,238.797
87,471 1,234,924
49,821
47,701
50,053
49,226
47,575
124,400
131,403
129,356
118,133
120,514
32,368
31,241
31,441
35,308
34,882
31,920
32,910
35,699
37,621
37,522
42,052
42,025
44,950
48,422
48,369
25,037
25,037
24,121
23,892
22,181
43,801
46,984
49,957
49,432
46,134
781,851
797; 191
784,326
796,727
43,386 17,805
40,945 19,810
37,320 16,266
45,789 16,626
45,657 16,303
64,133
61,473
60,479
72,263
70,776
38,785
35,080
28,844
28,922
28,032
19,836
18,449
16,315
14,342
14,170
16,244
16,208
16,787
12,848
12,856
23,241
22,620
22,198
22,180
22,762
41,421
37,009
36,836
36,214
41,664
606,705
608,324
608,898
609,056
634,363
Boston.
New
York.
74,297
77,471
78,824
79,807
80.754;
456,339
474,536
470,992
477,841
477,607
97,326
97,264
99,122
98,096
97,236
105,710
105,594
108,493
108,650
108,410
60,840
59,134
58,970
57,795
61,275
2.083
3; 225
3,518
5,125
4,882
59,369
71J636
76,526
79,231
80,145
3,683
4,035
5,904
6,273
5,806
3,489
4,369
2,378
3,368
3,654
2,645
4,686
5,924
6,547
8,132
72,214
74,246
75,308
74,682
75,872
^402,900
;^394,466
•398,610
93,229
93,218
91,823
397,462 91,430
102,221
101,225
106,115
105,282
104,756
58,195
54,448
53,046
51,248
53,143
65,508
63,839
62,850
60,975
59,739
37,897
41,071
42,424
43,407
44,354
250,599
250,595
227,052
236,700
236,467
56,946
63,884
63,102
68,376
64,916
55,410
57,794
59,693
6i; 850
64,610
31,602
26,546
26,478
26,360
26.305
36,668
36,682
36,688
36,700
36,703
213,400
229,811
251,519
241,166
245,780
40,981
42,234
36,725
33,036
37,322
50,825
48,009
48,921
50,970
62,338
Phila- Cleve- Richdelphia. land. mond.
Atlanta.
Chicago.
66,517
66,020
65,392
63,821
187,780
191,988
188,941
189,457
190,339
61,863
60,738
59,838
59,515
58,339
1,379 9,695
2,678 10,190
3,170 10,742
4,417 9; 181
4,082 10,174
73,905
146
FEDERAL BESERVE BULLETIN.
FEBRUARY 1,1918.
Federal Reserve note account of each Federal Reserve agent at close of business on Fridays, Dec. 28, 1917, to Jan. 25, 1918.
[In thousands of dollars; i. e., 000 omitted.]
Boston.
Phila- Cleve- Rich- AtNew
York. delphia. land. mond. lanta.
Chicago.
St. MinneLouis. apolis. City. Dallas. Francisco.
Total.
FEDERAL RESERVE NOTES.
Received from Comptroller:
Dec. 28
Jan. 4
Jan. 11
Jan. 18
Jan. 25
Returned to Comptroller:
Dec. 28
Jan.4
Jan. 11
Jan. 18
Jan. 25
Chargeable to Federal Reserve
agent:
Dec. 28
Jan.4
Jan. 11
Jan. 18
Jan. 25
In hands of Federal Reserve
agent:
Dec. 28
Jan. 4
Jan. 11
Jan. 18...
Jan. 25
Issued to Federal Reserve
Bank, less amount returned
to Federal Reserve agent for
redemption:
Dec. 28
Jan.4
Jan. 11
Jan. 18
,
Jan. 25
Collateral held as security for
outstanding notes:
Gold coins and certificates
on handDec. 28
Jan.4
Jan. 11
/....
Jan. 18
Jan. 25
In gold redemption fund—
Dec. 28
Jan.4
Jan. 11
Jan. 18
Jan. 25
Gold settlement fund, Federal Reserve Board—
Dec. 28
Jan. 4
Jan. 11
Jan. 18
Jan. 25
Eligible paper,
required
minimum.1 —
Dec. 28
Jan. 4
Jan. 11
Jan. 18
Jan. 25
TotalDec. 28
Jan.4
Jan. 11
Jan. 18
Jan. 25
1
103,160
104,180
105,460
105,460
106,500
673,080
690,280
703,480
710,680
710,680
125,480
125,480
127,720
127,720
133,200
128,520
128,520
133,360
133,760
133,760
78,100
78,100
78,100
78,100
81,740
89,620
89,620
89,620
89,620
89,620
232, 740
237,100
238,300
240,180
240,181
19,343
19,669
20,036
20,533
20,586
119,141
119,144
122,688
123,039
123,273
17,994
18,056
18,838
19,864
20,724
8,870
8,986
9,427
9,670
9,910
15,420
15,546
15,710
15,885
16,045
10,863
10,883
11,030
11,108
11,359
7,339
7,543
7,862
83,817
84,511
85,424
84,927
85,914
553,939
571,136
580,792
587,641
587,407
107,486
107,424
108,882
107,856
112,476
119,650
119,534
123,933
124,090
123,850
62,680
62,554
62,390
62,215
65,695
78,757
78,737
78,590
78,512
78,261
230,408
230,961
232,637
232,319
97,600 10,160 13,940
96,600 10,160 13,940
109,800 9,760 15,440
109,800 9,760 15,440
109,800 15,240 15,440
1,840
3,420
3,420
4,420
4,420
11,870
12,220
12,570
13,120
14,440
38,300
38,420
42,020
43,180
41,980
2,290
4,495
5,365
5,675
6,625
97,326
97,264
99,122
98,096
97,236
60,840
59,134
58,970
57,795
61,275
66,887
66,517
66,020
65,392
63,821
187,780
191,988
188,941
189,457
190,339
61,863
60,738
59,838
59,515
58,339
51,016
51,006
50,795
50,967
50,868
2,513
'l20
13,102
13,102
13,102
13,102
13,102
9,520
7,040
6,600
5,120
5,160
72,580
73,660
73,660
73,660
73,860
8,427
8,427
8)457
8,470
65,480
67,980
67,980
67,980
67,980
78,740
78,740
82,740
82,740
82,740
68,500 80,340
68,500 83,540
68,500 85,140
68,500 85,140
68,500 86,900
11,878 12,258
12,057 12,269
10,095 12,393 12,490
10,173 12,478 12,607
10,272 12,648 12,757
64,153 55,606
65,233 58,096
65,203 57,885
65,190 57,807
64,964 57,708
66,862
66,683
70,347
70,262
70,092
6,435
6,452
6,579
6,605
6,672
1,796,340
1,825,700
1,854,060
1,863,540
1,875,661
247,163
248,065
255,082
257,975
261,004
56,242 73,905 1,549,177
56,231 77,088 1,577,635
56,010 78,561 1,598,978
55,893 78,535 1,605,565
55,743 80,228 1,614,657
4,590 8,800 8,515
7,090 8,800 9,115
7,090 9,000 9,765
6,840 9,000 10,105
6,840 10,220 10,870
47,727
47,116
46,245
45,788
44,873
207,425
211,300
230,830
232,460
241,035
74,297
77,471
78,824
79,807
80,754
456,339
474,536
470,992
477,841
477,607
32,530
35,730
33.109
33.110
33,109
165,420
180,417
177,277
184,277
184,262
3,367
3,341
4,315
4,297
4,245
10,179
10,178
9,775
12,423
12,205
4,967
4,905
4,843
5,232
5,167
5,455
5,384
5,814
5,743
5,593
1,602
1,546
1,478
1,360
1,305
3,448
3,428
3,280
3,202
2,951
325
293
189
75
427
2,448
2,449
2,418
2,405
2,379
1,318
1,308
2,097
2,019
1,920
2,192
2,165
2,090
2,562
2,509
2,483
2,483
2,467
3,338
2,427
3,695
3,678
3,551
3,526
4,458
41,479
41,158
42,317
46,182
45,586
2,000
2,000
5,000
6,000
7,000
75,000
60,000
40,000
40,000
40,000
47,759
54,759
54,039
56,924
55,529
35,000
35,000
35,000
35,000
35,000
30,000
25,000
25,000
25,000
25,000
42,770
40,670
43,170
42,420
41,020
124,075
131,110
129,167
118,058
120,087
27,405
27,403
28,903
32,903
32,503
17,500
18,500
20,500
22,500
22,500
39,860
39,860
42,860
45,860
45,860
8,474
8,474
7,474
5,974
5,174
40,106
43,306
46,406
45,906
41,666
489,949
486,082
477,519
476,545
471,339
36,400
36,400
36,400
36,400
36,400
205, 740
223,941
243,940
241,141
241,140
40,380
33,380
36,020
31,720
32,320
50,300
47,800
48,800
46,800
43,800
29,238 17,066 63,380 29,497
32,588 18,816 60,585 29,497
32,492 15,967 59,585 28,397
31,435 16,166 71,324 24,207
34,970 16,246 69,825 23,457
19,096
18,096
15,096
13,346
13,346
16,010
15,858
16,397
12,840
11,503
22,690
22,079
22,124
21,896
30,104
30,104
28,604
29,103
34,104
559,901
569,144
583,822
576,378
579,803
74,297
77,471
78,824
79,807
80,754
456,339 97,326 105,710 60,840 66,887 187,780
474,536 97,264 105,594 59,134 66,517 191,988
470,992 99,122 108,493 58,970 66,020 188,941
477,841
108,650 57,795 65,392 189,457
477,607 97,236 108,410 61,275 63,821 190,339
61,863 51,016
60,738 51,006
59,838 50,795
59,515 50,967
58,339 50,868
58,062
57,883
61,347
61,262
59,872
47,727
47,116
46,245
45,788
44,873
73,905
77,088
78,561
78,535
80,228
1,341,752
1,366,335
1,368,148
1,373,105
1,373,622
105,710
105,594
108,493
108,650
108,410
3,603
3,603
4,220 14,955
4,220 17,410
4,220 18,879
4,220 21,107
4,220 24,017
3,604
3,604
58,062
57,883
61,347
61,262
59,872
73,905
77,088
78,561
78,535
80,228
14,080
14,080
14,180
14,580
14,580
For actual amounts see item "Paper delivered to Federal Reserve agent," on page 145.
1,341,752
1,366,335
1,368,148
1,373,105
1,373,622
250,423
269,951
264,490
274,000
276,894
Amounts
147
FEDERAL RESERVE BULLETIN.
FEBRUARY 1,1918.
of Federal Reserve notes received from and returned to other Federal Reserve Banks for redemption or credit hy
each Federal Reserve Bank during the calendar year 1917.
New York.
Boston.
Received.
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City...
Dallas.
San Francisco.
Returned.
$9,482,800 $3,018,450
634,700
368,000
352,900
36,415
263,900
50,500
193,200
135,400
347,800
218,500
99,700
53,450
142,200
16,000
126,600
8,815
141,400
283,695
156,500
30,200
Total.
11,941,700
4,219,425
Philadelphia.
Cleveland.
Received.
Returned.
Received.
Returned,
Received.
$3,064,200
$9,552,800
$368,000
11,169,902
$634,700
5,818,700
5,876,300
1,720,700
3,680,305
3,116,410
1,760,420
664,500
844,375
976,600
1,014,415
2,656,490
11,553,902
1,216,800
993,100
1,236,100
3,425,000
878,700
390,500
127,750
566,920
383,415
$38,915
1,250,300
258,495
$352,900
1,725,105
883,000
835,000
798,005
311,000
406,000
113,000
122,000
129,000
101,000
163,000
247,995
336,670
151,400
357,500
90,600
17,000
12,100
312,450
31,370
101,100
72,680
420,040
176,520
77,030
64,240
36,410
32,595
145,200
285,900
939,500
226,705
53,000
25,000
295,390
67,955
25,374,715
30,324,987
14,515,907
8,010,485
2,528,325
4,999,655
Richmond.
Chicago.
Atlanta.
St. Louis.
Received.
Returned.
Received.
Returned.
Received.
Returned.
Received.
$47,500
999,100
323,920
133,950
$263,900
3,600,750
798,000
100,600
$135,400
1,236,500
150,650
282,150
862,450
$193,200
3,030,710
311,000
72,180
268,520
278,520
128,610
34,250
44,390
34,240
33,500
12,700
862,450
332,000
122,080
17,000
18,990
91,980
184,485
$347,800
1,698,920
419,000
418,040
128,610
223,550
224,550
424,450
95,900
212,550
960,500
69,245
747,500
820,635
29,000
68,950
525,830
50,450
$232,500
3,425,000
357,500
1,178,650
312,000
747,500
1,135,000
3,418,000
2,652,500
921,000
700,000
1,050,350
219,500
145,550
129,335
225,460
$53,450
922,200
90,600
226,705
122,080
820,630
1,050,350
$100,900
661,150
113,000
183,020
34,250
424,450
1,205,000
328,300
2,298,000
1,961,500
148,950
54,500
211,150
373,720
57,540
2,070,680
6,392,235
4,654,345
6,117,975
15,079,650
5,006,115
8,022,765
3,418,680
Boston
New York
Philadelphia..,
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas C i t y . . .
Dallas
San Francisco.
Total.
Minneapolis.
Kansas City.
Dallas.
San Francisco.
Total.
$283,695
599,420
314,450
299,640
89,330
521,830
$141,400
964,265
101,000
39,410
33,750
950,600
974,000
1,961,500
58,000
310,950
$15,000 $142,200
390,500
792,325
17,000
122,000
51,500
116,030
17,000
44,390
95,900
29,000
219,500 3,418,000
54,500
$8,815 $126,600
127,750
929,160
11,600
129,000
66,740
25,000
18,990
34,240
68,950
217,550
142,150 2,776,500
211,150 2,298,500
133,400
224,500
215,000
58,000
260,000
133,400
66,250
249,295
310,950
52,100
754,820
337,765
104,060
225,145
1,327,000
5,508,090
1,110,855
7,895,375
3,536,050
5,760,020
373,720
66,250
754,820
Returned.
Total.
Received. Returned, Received. Returned, Received. Returned. Received. Returned. Received.
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
Returned.
Returned.
$29,025 $156,500 $4,276,500 $12,012,900
393,580 2,560,440 29,997,052 24,799,975
31,575
163,000 8,066,790 14,960,902
69,545
36,840 5,175,740 2,534,070
185,015
14,200 6,450,175 2,083,430
66,850 6,210,710 4,650,150
50,990
875,000 5,129,265 15,268,500
301,010
148,950 3,344,960 7,979,770
58,170
272,000 5,537,985 1,351,000
266,140
58,100 7,783,185 1,118,755
319,635
106,560 5,765,280 3,506,950
226,605
4,355,640 1,843,080
1,931,290
4,456,440
92,093,282
92,109,482
148
FEDERAL RESERVE BULLETIN.
FEBRUARY 1,1918.
MEMBER BANK CONDITION STATEMENT.
Principal resources and liabilities of member banks located in central reserve, reserve, and other selected cities, as at close of
business on Fridays, Dec. 21, 1917, to Jan. 18, 1918.
[In thousands of dollars; i. e., 000 omitted.]
1. TOTAL FOR ALL REPORTING BANKS.
Boston.
Number of banks reporting:
Dec. 21
Dec. 28......
Jan. 4..
Jan. 11
Jan. 18
United States securities
owned:
28,839
Dec. 21
28.426
Dec. 28..
29,623
Jan. 4
29,951
Jan. 11
30,157
Jan. 18...
Loans secured ~bj United
States bonds and certificates:
44,696
Dec. 21
44,142
Dec. 23
42,583
Jan. 4
40,962
Jan. 11
37, 854
Jan.18.
All other loans and investments:
663,297
Dec. 21
659,419
Dec. 28
663,403
Jan. 4
663,609
Jan. 11
Jan. 18....
671,024
Reserve with Federal Reserve Banks:
Dec. 21
48,867
56,722
Dec. 28
55,533
Jan. 4
Jan. 11
55,882
Jan.18...
49,627
Cash in vault:
22,250
Dec. 21
25,080
Dec. 28
23,681
Jan. 4
24,855
Jan. 11
Jan. 18
22,645
Net demand deposits on
which reserve is computed:
527,880
Dec. 21
528,147
Dec. 28—
535,830
Jan. 4
550,369
Jan. 11
553,402
Jan.18
...
Time deposits:
Dec.21
77,136
76,885
Dec. 28
75,758
Jan. 4
75,856
Jan. 11
76,591
Jan.18
Government deposits:
Dec.21
39,474
Dec. 28.....
39,474
Jan.4..
41,077
Jan. 11
39,730
30,484
Jan.18
NewYork.
Phila- Cleve- RichAtdelphia. land. mond. lanta.
St.
Minne- Kansas Dallas. FranChicago. Louis.
apolis. City.
cisco.
67
614
630
64.0
659
662
34
67
60,557
64,321
75,572
77,774
75,020
38,190
38,408
48,329
41,446
41,913
34,270
32,877
33,584
32,561
29,381
22,125 10,904
21,125 10,152
20,797 11,294
22,118 11,465
22,555 12,404
2,673
2,271
2,304
3,315
2,530
886,419
902,768
900,485
886,895
300,149
292,396
320,517
318,721
311,416
263,372
268,854
268,840
264,515
259,449
1,249,502
1,309,687
1,324,186
1,323,962
1,322,694
54,141
58,616
62,706
64,736
54,325
78,650
82,478
84,147
85,938
82,184
26,441
26,613
30,299
30,324
28, 095
25,179
23,363
26,064
24,635
25,079
124,957
132,996
132,495
137,123
134,684
129,850
137,069
135,192
139,108
129,628
20,242
23,749
23,218
25,199
23,158
34,239 17,150 13,636
44,738 18,861 14,990
49,964 21,786 15,885
44,268 22,522 14,759
45,454 16, 866 12, 950
4,011,224
4,172,439
4,231,809
4,347,385
4,249,491
484,057
496,665
551,599
587,216
585,835
653,024
684,476
684,471
694,072
688,540
247,989
240,440
258,180
274,682
246,029
286,283
309,160
329,441
326,935
325r864
18,905
23,793
18,326
17,005
15,194
199,110
206,162
202,364
204,693
440,486
330, ~~'
141,211
151,011
29,505
29,529
38,205
35,629
25, 972
56,735
56,957
60,727
58, 785
53,099
456,934
435,214
506,112
486,578
445,469
28,459
28,021
30,484
29,970
232,269
227,962
268,572
231,888
212, 908
25,177
25,226
21,982
25,163
25,286
4,090,644
4,151,259
4,041,880
4,063,076
4,082,896
543,165
552,974
579,992
633,093
626,612
597,698
631,694
609,923
635,806
616,801
118,109
113,479
113,954
110,165
121,292
Total.
33,540 10,166
33,272 10,148
44,673 10,927
34,750 13,133
34,955 13,550
29,074
30,123
33,795
30,966
31,545
24,705
28,966
30,081
29,768
30,442
53,204
48,371
56,645
53,677
53,672
916,047
891,626
1,013,779
970,739
935, 794
1,266
1,305
1,248
1,592
2,386
2,329
3,789
2,607
2,447
2,942
4,856
3,346
3,431
3,849
3,969
5,750
5,380
5,580
4,910
6,403
401,182
388,268
423,832
391,711
381,310
212,497
216,870
214,578
235,711
231,821
438,919
432,394
449,573
451,713
448, 752
167,329
181,262
192,800
196,418
196,526
471,222
447,645
469,992
473,804
464,701
9,624,118
9,746,199
9,768,297
9,875,021
9,897,249
34,547 14,590
34,673 8,897
34,890 8,544
35,281 8,721
42, 786 9,287
337,603
330,671
342,051
363,504
386,370
33,705 16,869
32,885 17,927
38,355 17,021
38,113 19,269
34,967 18,384
51,586 17,990 38,350 1,114,433
41,262 19,207 38,060 1,161,823
45,231 19,036 42,435 1,163,245
46,874 20,176 43,513 1,202,389
42,648 19,895 40,585 1,147,274
63,322
68,524
73,447
69,866
64,631
12,413
14,886
15,897
14,999
14,116
8,150
8,588
8,681
10,350
9,940
18,565 11,435
20,627 13,083
19,995 14,422
20,046 14,129
18,290 13,406
201,789
206,120
206,493
207,211
201,927
911,805
947,727
981,751
,011,945
997,142
252,285
253,262
273,459
283,977
278,716
154,965
155,583
157,466
176,592
173,652
376,444
364,449
373,676
377,252
379,398
175,228
179,595
194,560
196,133
193, 941
41,276
46,847
54,720
45,443
51,021
66,743
67,814
68,610
66,276
65,051
314,018
329,589
332,008
341,156
74,259
76,680
67,652
79,314
80,539
37,537
39,852
40,127
48,207
47,151
43,068
49,825
44,092
41,554
46,199
17,712
29,904
24,056
23,691
23,271
9,826
12,615
14,835
12, 350
12,377
1,120
869
2,290
2,167
1,823
54, 366 7,352
64,844 7,102
78, 728 11,250
76,863 11,257
35,234 7,244
16,550 8,786
14,242 8,633
14,643 16,609
10,822 7,372
8,397 12,136
25,876
22,544
24,142
25,233
23, 772
377,128
412,739
426,310
425,334
394, 856
354,271
341.380
359;747
357,398
353,866
8,350,961
8,570,283
8,809,041
9,085,832
8,901,939
87,969 1,230,078
81,004 1,321,944
88,853 1,343,588
87,716 1,348,698
89,878 1,361,800
6,229 15,277
6,653 19,836
8,470 15,017
14,453
5,933 11,024
685,706
591,578
550,439
419,018
354,734
2. MEMBER BANKS IN CENTRAL RESERVE CITIES.
I CENTRAL RESERVE CITIES.
Number of banks reporting:
Dec.21
Dec. 28
Jan.4
Jan. 11
Jan. 18
United
States securities
owned:
Dec.21
Dec. 28
Jan.4
Jan. 11
Jan. 18
105
107
107
108
108
411,628
390,479
462,200
443,925
26,592
25,534
34,446
35,043
23,406
21,300
20,270
22,066
21,774
21,417
459,520
436,283
518,712
500,742
449; 52f
149
FEDERAL RESERVE BULLETIN.
FEBRUARY 1,1918.
Principal resources and liabilities of member banks located in central reserve, reserve, and other selected cities, as at close of
business on Fridays, Dec. 21, 1917, to Jan. 18, 1918—Continued.
[In thousands of dollars; i. e., 000 omitted.]
2. MEMBER BANKS IN CENTRAL RESERVE CITIES—Continued,
Boston.
San
Francisco.
Chicago.
St.
Louis.
207,799
203,821
245,169
209 551
190,540
20,869
20,466
21,109
21,410
27,544
13,335
7,647
7,333
7,369
7,592
242,003
231,934
273,611
238,330
225,676
3,693,660
3,753,299
3,626,186
3,653,434
3.664, 950
822,114
825,948
852,758
839,106
845, 500
256,444
243,654
247,832
256,402
280,548
4,772,218
4,822,901
4,726,776
4,748,942
4,790,993
563,194
592,840
571 354
602,146
579, 732
89,384
93,804
96,468
98,040
96,293
26,587
25,473
30,718
29,745
26,944
679,165
712,117
698,540
729,931
702,969
112,574
118,057
116,547
120;677
113,041
39,702
42,316
46,444
44,887
40,898
8,059
9,606
9,880
8,996
8,434
160,335
169,979
172,871
174,560
162,373
3,627,807
3,792,664
3,850,703
3,962,030
3,866,101
651,245
657,591
691,798
702,317
681,099
187,435
189,280
202,066
203,621
198,523
4,466,457
4 63^/535
4 T44.567
^867,968
4,745,723
250 435
272'716
285,448
284,324
284,356
129,053
131,334
135,318
135,570
135, 021
62,295
62,652
53,287
62,902
62,521
441,783
466,702
474,053
482,796
481,898
418,971
310,196
227,279
125 035
137,911
39,232
48,478
58,631
51,685
24,994
5,979
5,978
9,929
9,713
6,265
464,182
364,652
295,839
186,433
169,170
New
York.
Phila- Clevedelphia. land.
Richmond.
Atlanta.
Minne- Kansas Dallas.
apolis. City.
Total.
CENTRAL RESERVE CITIES—
continued.
Loans secured by United
States bonds and certificates:
Dec.21
Dec.28
Jan. 4
Jan. 11
Jan. 18.
All other loans and investments:
Dec 21
Dec.28
Jan 4
Jan. 11 .
Jan. 18.
Reserve with Federal Reserve Bank:
Dec. 21
Dec.28..
Jan. 4
Jan. 11
Jan. 18.
Cash in vault:
Dec. 2 1 . . . . . . .
Dec. 28.
.
Jan. 4
Jan 11
.
Jan. 18
Net demand deposits on
which reserve is computed:
Dec. 21..
Dec 28
Jan. 4
Jan 11
Jan. 18.
Time deposits:
Dec 21
Dec 28
Jan. 4
Jan. 1 1 . . . . . .
Jan 18
Government deposits:
Dec 21
Dec 28
Jan 4
Jan 11
Jan 18
3. MEMBER BANKS IN RESERVE CITIES.
OTHER RESERVE CITIES.
Number of banks reporting:
Dec.21.......
14
Dec.28
14
Jan. 4
14
Jan. 1 1 . . . .
14
Jan. 18
14
United
States
securities
owned:
Dee. 21
14,718
Dec.28
14,188
Jan. 4.
14,824
Jan. 1 1 . . .
14,683
Jan, 18
.....
14,763
Loans secured by U. S. bonds
and certificates:
Dec.21......
37,205
Dec.28.......
36,753
Jan. 4...
35,627
Jan. 11.....
34,139
Jan. 18...:.....
31,186
All other loans and investments:
Dec.21............
495,583
Dec.28
.489,467
Jan. 4.
........488,976
Jan. 1 1 . . . . . . . . . . . . . . . . . . . 488,367
Jan. 18.
496,819
16
18
16
16
16
33
33
34
35
35
46
48
55
55
56
39
40
42
43
41
27
26
27
26
26
33
36
36
48
49
8
10
11
13
13
13
14
14
14
15
67
68
69
68
69
29
32
32
33
33
41
40
43
43
43
408
410
27,610
26,872
25,168
24,571
23,316
22,792
22,109
24,555
24,022
23, 662
101,304
97,344
104,727
100,941
110,924
25,135
23,576
27,160
26,647
27,571
27,885
26,552
28,041
27,463
24,641
22,936
28,620
29,610
40,627
49,320
6,913
8,650
8,590
9,685
10,547
8,558
8,533
9,216
8,977
9,580
29,074
30,123
33,795
30,966
31,545
22,286
25,601
25,960
25,699
25,140
50,867
47,370
56,645
53.677
53,'672
360,078
359,538
388,291
387,938
404,661
15,088
14,832
13,781
12,473
12,108
24,474
24,587
21,361
24,572
24,680
20,569
19.341
19;936
21,339
21,826
8,340
8,280
9,638
9,632
10,499
2,514
•2,106
2,151
3,149
2,373
10,886
11.441
Hi 014
13,356
14, 720
922
1,046
1,044
1,140
1,357
1,134
1,167
1,113
1,349
2,147
2,329
3,789
2,607
2,447
2,942
4,801
3,339
3,373
3,720
3,908
5,184
4,848
5,580
4,910
67 403
133,448
131,529
127,226
132,226
134,129
254,555
256,878
252,943
250,065
257, 834
482,867
489,995
519,065
572,285
564,188
778,542
793,173
833,033
817,409
824,441
218,172
207,669
241,916
231,800
233,890
226,206
232,199
234,536
231,228
233,741
364,048
425,322
409,886
474,255
466,536
51,629
61,755
75,832
82,648
81,638
179,392
184,061
182,032
180,258
177,134
438,919
432,394
449,573
451,713
448,752
144,653
163,012
162,033
185,699
166,032
457,480
433,594
469,992
473,804
464,701
4,092,046
4,169,519
4,319,817
4,417,511
4,415,706
377
150
FEDERAL RESERVE BULLETIN.
FEBRUARY 1,1918.
Principal resources and liabilities of member banks located in central reserve, reserve, and other selected cities, as at close of
business on Fridays, Dec. 21, 1917, to Jan. 18, 1918—Continued.
[In thousands of dollars; i. e., 000 omitted.]
3. MEMBER BANKS IN RESERVE CITIES—Continued.
Boston.
New
York.
Phila- Cleve- Richdelphia. land. mond.
Atlanta.
San
St.
Minne- Kansas Dallas. FranChicago. Louis.
apolis. City.
cisco.
Total.
OTHER RESERVE CITIES—COn.
Reserve with Federal Reserve Bank:
Dec. 21
Dec.28
Jan. 4
,
Jan.ll
Jan. 18
Cash in vault:
Dec.21
Dec.28
Jan.4.
Jan.ll
Jan. 18
Net demand deposits on
which reserve is computed:
Dec.21
Dec.28
Jan.4
Jan. 11
Jan. 18
,.
Time deposits:
Dec.21
Dec.28
Jan.4
Jan. 11.Jan.18
Government deposits:
Dec.21
Dec.28
Jan.4.
Tan. 11
Ja^.18...
38,933
46,537
44,993
45,624
39,432
22,405
28,305
26,346
23,440
26, 973
49,921
54,347
58,552
60,566
50, 625
71,243
74,784
79,285
81,081
77,117
21,287
20,948
24,848
24,420
22, 735
22,634
20,865
23,849
22,197
22,889
37/670
5,185
5,532
6,422
6,851
6;507
15,480
18,369
16,620
17,795
16,344
9,590
9,968
9,987
10,249
9,275
17,360
20,199
19,765
22,502
20,492
29,236
38,883
45,181
39,891
40,741
13,857
14,412
17,352
18,056
13,297
11,795
12,996
14,136
12,942
11,608
17,973
22,988
23,749
24,586
23,286
2,727
3,751
4,705
4,765
4,384
411,431
408,104
411,583
424,973
432,347
233,300
231,437
228,675
230,954
228,593
428,433
447,577
496,647
532,553
531,952
585,077
612,311
626,032
632,987
627,264
181,701
173,697
195,615
205,593
181,790
175,299
179,898
184,458
182,952
181,739
230,677
262,819
258,741
301,874
308,218
40,987
46,254
56,869
62,588
62,877
28,127
28,433
27,417
27,274
27,766
21,107
21,249
27,105
25,707
24,743
13,762
13,470
13,110
11,751
175,702
183,701
186,947
187,874
183,286
31,061
32,052
42,230
34,852
41,065
52,732
53,754
54,534
53,447
55,205
33,767
33,767
35,453
33,289
26,917
12,883
12,302
13,019
9,917
9,668
27,480
27,504
36,721
33, 639
24,573
54,371
54,596
59,918
57,989
52,384
9,706
8,407
8;355
768
483
1,912
1,865
1,620
29,307
36,520
32,635
14,942
16,071
15,182
15,781
15,185
51,586
41,262
45,231
46,874
42, 648
16,233
17,673
16,751
17,511
17,424
37,528
37,098
42,435
43,513
40,585
381,204
399,942
416,529
426,186
399,790
6,156 18,565 10,337 24,973
6,429 20,627 11,576 21,587
6,305 19,995 12,218 24,142
6,941 20,046 11,737 25,233
6,519 18,290 11,587 23,772
178,049
201,785
214,155
214,743
199,595
376,444
364,449
373,676
377,252
379,398
155,823
163,643
168,099
168,962
167,232
341,521
328,573
359,747
357,398
353,866
3,298,718
3,353,950
3,497,257
3,636,630
3,591,853
122,460 8,661 25,608 43,068
154,804 7,644 27,441 49,825
165,351 11,552 27,553 44,092
191,907 10,140 27,242 41,554
201,487 12,000 27,448 46,199
15,274
25,650
18,814
19,060
18,614
87,503
80,553
88,853
87,716
89,878
625,065
678,576
707,558
718,524
737,577
6,129
6,453
8,270
8,304
5,769
14,344
18,903
15,017
14,453
11,024
196,517
200,897
230,611
210,775
170,749
14,590
15,822
19,548
25, 111
10,214
133,025
135,188
137,115
138,944
136,577
1,260 15,250
1,011 12,915
1,208 13,230 16,609
1,331 9,098 7,372
731 7,358 12,136
4. REPORTING MEMBER BANKS OUTSIDE RESERVE CITIES.
COUNTRY BANXS.
Number of banks reporting:
Dec.21
Dec.28
Jan.4
Jan. 11
Jan.18
17. S. securities owned:
Dec.21
Dec.28.....
Jan.4
Jan.ll
Jan. 18
Loans secured by U. S. bonds
and certificates:
Dec.21
Dec.28
Jan.4
Jan.ll
Jan.18
All other loans and investments:
Dec.21
Dec.28
Jan.4
Jan. 11
Jan.18
Reserve with Federal Reserve Bank:
Dec.21
Dec.28
Jan.4
Jan.ll
,.
Jan.18
Cash in vault:
Dec.21..
Dec.28
Jan.4..
Jan. 11
Jan.18
22
22
21
21
21
24
24
24
24
24
14,121
14,238
14,799
15,288
15,394
17,696
17,863
18,744
18,082
17,455
7,491
7,389
6,956
6,823
11
11
11
11
11
24
25
20
20
21
13
13
14
5
5
26
5,667 16,805 13,055
5,912 16,135 14,832
5,929 9,227 21,169
5,948 9,224 14,799
4,736 10,368 14,342
6,385
6,325
5,543
5,098
4,740
4
4
4
14
15
11,029 5,327
10,167 4,352
11,516 14,017
2,104 3,291
2,294 2,991
143
146
140
143
144
1,608
1,615
1,711
4,156
3,990
2,419
3,365
4,121
4,069
5,302
2,337
1,001
96,449
95,805
106,776
82,059
81,612
55
7
58
129
61
566
532
25,733
24,805
22,996
21,155
21,505
22,676 13,742
18,250 14,051
30,767
30,719
30,494
759,854
753,779
721,704
708,568
690,550
9,309
9,622
9,864
10,260
703
639
621
591
606
1,556
1,784
861
779
729
2,564
1,872
1,656
1,833
1 905
159
165
153
166
157
2,792
2,766
2,767
515
522
333
204
167
212
132
138
135
243
167,714
169,952
174,427
177,242
174,205
142,429
141,082
162,751
159,577
160,117
60,298
62,979
60,927
60,828
62,424
107,877
109,595
67,452
69,486
70,547
81,977
84,727
78,601
86,921
77,526
37,166
36,655
34,304
33,287
25,708
63,340
58,417
61,542
10,601
10,658
29,530
25,262
18,387
24,454
24,184
33,105
32,809
32,546
55,453
54,687
9,934
10,185
10,540
10,258
10,195
12,099
10,549
12,223
10,220
10,096
4,220
4,269
4,154
4,170
3,700
7,407
7,694
4,862
4,857
5,067
5,154
5,665
5,451
5,904
5,360
2,545
2,498
2,215
2,438
2,190
6,266
2,672
3,392
755
721
1,933
1,880
1,215
1,517
1,516
1,927
1,856
1,839
3,488
3,199
1,757
1,534
2,285
2,665
2,471
6,770
6,711
7,061
7,060
6,301
7,686
9,044
8,658
8,182
7,312
2,882
3,550
3,453
2,697
2,666
5,003
5,855
4,783
4,377
4,713
3,293
4,449
4,434
4,466
3,569
1,841
1,994
1,749
1,817
1,342
5,647
3,220
3,254
393
447
1,627
1,529
1,312
1,238
1,298
1,994
2,159
2,376
3,409
3,421
1,098
1,507
2,204
2,392
1,819
962
903
957
54,064
49,764
48,176
46,272
43,515
38,744
40,975
39,284
36,031
FEBRUARY 1,1918.
151
FEDERAL BESEEVE BULLETIN.
Principal resources and liabilities of member banks located in central reserve, reserve, and other selected cities, as at close of
business on Fridays, Dec. 21, 1917, to Jan. 18, 1918—Continued.
[In thousands of dollars; i. e., 000 omitted.]
4. R E P O R T I N G M E M B E R B A N K S O U T S I D E R E S E R V E CITIES—Continued.
Boston.
COUNTRY BANKS—continued.
Net demand deposits on
which reserve is computed: j
Dec. 21
.i 116,449
120,043
Dec. 28....
Jan. 4
1 124,247
125,396
Jan. 11
121,055
Jan. 18
Time deposits:
Dec. 21
49,009
Dec. 28
48.452
Jan. 4
48,341
Jan. 11
48,582
Jan. 18
48,825
Government deposits:
Dec. 21
5,707
Dec. 28
5,707
Jan. 4
5,624
Jan. 11..
6,441
Jan. 18
3,567
!
New
York.
Phila- Cleve- RichAtdelphia. land. mond. lanta.
San
St.
Minne- Kansas
Louis. apolis. City. Dallas. Francisco.
Total.
590,756
576,798
567,217
581,234
564,363
66,288
66,743
62,565
69,089
84,239
26,490
26,222
22,035
24,259
20,188
29,883
27,317
31,212
7,754
7,825
23,863
17,728
14,524
17,768
17,316
21,940
20,395
20,351
39,648
37,075
14,741 5,143 23,408 10,215
15,195 10,323 22,461 14,795
16,888 5,216 15,417 12,490
16,904 5,254 16,819 10,591
16, 765 5,308 16,599 9,956
14,011
14,060
14,076
12,829
28,567
27,880
28,920
4,531
4,648
3,303
6,384
2,813
6,272
6,018
11,929
12,411
12,574
20.965
19,703
2,438
4,254
5,242
4,631
4,657
466
451
163,230
176,666
161,977
147,378
142,325
352
386
378
302
203
544
544
549
67
113
113
113
213
248
1,300
1,327
1,413
1,724
1,039
100
200
200
75
164
933
25, 007
26,029
23,989
21,810
14,815
150,117
148,338
152,431
154,401
154,797
8,632
8,326
8,290
6, 259
3,432
55,624
49,088
54,952
54,863
53,883
67,947
72,165
58,439
61,085
61,276
Chicago.
2,364
2,361
809
2,025
2,025
1,484
1,990
1,399
796
715
2,937
4,107
5,129
3,943
4,022
19,405 12,750
15,952 12,807
26,461
27,171
26, 709
EARNINGS ON INVESTMENTS OF FEDERAL RESERVE BANKS.
Average amounts of earning assets held by each Federal Reserve Bank during December, 1917, earnings from
earning assets, and annual rates of earnings on the basis of December, 1917, returns.
each class of
Average balances for the month of the several classes of earning assets.
Bills discounted,
members and
Federal Reserve
Banks.
Bills bought in
open market.
Boston
New York
Philadelphia..
Cleveland
Kichmond
Atlanta
Chicago
,
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco
$40,241,452
312,385,180
33,346,433
43,104,912
24,327,250
15,324,143
93,032,270
31,285,780
12,578.300
29,236,175
7,617,515
21,674,389
$11,575,880
108,492,558
21,297,307
26,174,885
13,495,471
7,041,676
7,047,015
7,667,696
9,608,200
2,375,596
15,117,229
20,544,014
$2,871,363
15,533,136
7,654,381
24,263,463
3,482,681
4,954,860
14,183,536
3,717,238
3,314,200
10,703,735
5,674,826
4,329,492
Total...
664,153,799
250,437,527
100,682,911
Banks.
Earnings from—
Banks.
Bills discounted,
Bills
members bought
and
in open
Federal market.
Reserve
Banks.
United
States
securities.
Boston
New York....
Philadelphia.
Cleveland
Bichmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco
$216,605
816,793
108,602
155,024
82,289
52,563
322,190
104,654
41,244
105,156
27,500
77,648
$23,043
318,848
62,746
79,654
40,025
21,564
21,018
22,924
6,665
45,395
61,940
$7,324
38,297
23,216
66,803
8,149
15,735
33,747
8,507
7,128
22,008
14,842
8,872
Total...
2,110,268
732,191
254,628
United States
securities.
Municipal
warrants.
$54,688,695
$527,0)6
39 277
1(7,582
93,553,842
41,305,402
27,642,737
114,262,821
42,670,714
25,526,100
« , 315,506
29,149,312
46,54^,895
322,05E
25,400
"739," 742
1,663,977
1,016,938,214
Calculated annual rates of earnings from—
Municipal
warrants.
Total.
$246,972
1,175,712
194,717
301,498
130,463
90,877
1,015
376,955
136,085
76,844
103
133,829
88,071
"334
148,460
$1,774
153
17
3,396
3,100,483
Bills discounted,
Bills
members bought
and
in
open
Federal
Reserve market.
Banks.
United
States
securities.
Municipal
warrants.
Total.
Per cent. Per cent. Per cent. Per cent. Per cent.
3.16
3.03
3.23
3.23
3.27
2.90
3.46
3.22
3.67
3.57
4.61
3.46
3.83
3.79
3.24
3.58
4.24
2.00
3.72
2.76
3.49
3.98
3.87
3.72
3.61
3.74
4.04
3.88
2.80
3.51
4.08
3.75
2.69
3.52
3.93
3.53
2.53
3.48
3.86
4.77
3.72
2.42
3.33
4.23
3.63
3.14
3.60
4.33
"5." 42
3.72
2.41
3.54
4.19
3.75
3.43
2.98
2.40
3.59
152
FEDEKAL BESERVE BULLETIN,,
FEBRUARY 1,1918.
GOLD IMPORTS AND EXPORTS.
Gold imports and exports into and from the United States.
[In thousands of dollars; i. e., 000 omitted.]
Week endingDec. 21,
1917.
Dec. 28,
1917.
Jan. 4,
1918.
Jan. 11,
1918.
Jan. 18,
1918.
Total for
corresponding period
during
1917.
Total
since
Jan. 1,
1918.
IMPORTS.
Ore and base bullion
United States mint or assay office bars
Bullion, refined
United States coin .
. . . .
Foreign coin
.„
....
. —
Total........
208
203
268
215
82
466
161
529
16
ii
5
14
578
40
7
148
1,000
733
1,045
' 14
599
2
1.502
50,000
4,976
298
840
1,237
2,258
57,049
3
6
977
8
1,696
15
658
148
13,442
ll
383
748
877
1,688
19
568
866
2
286
2,565
587
867
291
983
1,707
14,263
27
11
104
1
i
70
522
27
11
104
1
1
70
522
2,592
598
971
292
984
1,777
14,785
EXPOKTS.
Domestic:
United States mint or assay office bars
Bullion, refined.
. .
Coin...'
„
3
1
.
• •
Total
Foreign:
Bullion, refined
Coin
Total
Total exports
Excess of gold imports over exports since Jan. 1,1918, $481; excess of gold imports over exports since Aug. 1,1914, SI,050,785.
DISCOUNT RATES.
Discount rates of each Federal Reserve Bank approved by the Federal Reserve Board up to Jan. Si, 1918,
Maturities.
Discounts.
Federal Reserve Bank.
Within 15
days,
including
member
banks'
collateral
notes.
16 to 60
days.
61 to 90
days.
Agricultural and
live-stock
paper
over 90
Trade acceptances.
Secured by U. S. certificates of indebtedness or Liberty Loan
bonds.
Within 15
days, including
member
banks'
collateral
notes.
Ito60
days,
inclusive.
61 to 90
I days, -i
inclusive.
16 to 90
Boston
New Y o r k i . . .
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Loins
Minneapolis...
Kansas City...
Dallas.
San Francisco,
t
4
4
4
4
4
4
4
4
4
4
1
Rate of 3 to 4$ per cent for 1-day discounts in connection with the loan operations of the Government.
NOTE l.—-Bate for acceptances purchased in open market, 3 to 4} per cent, except for Boston, Chicago, and Minneapolis, whose rates rang©
from 3 to 5 per cent.
NOTE 2.-—In case the 60-day trade acceptance rate is higher than the 15-day discount rate trade acceptances maturing within 15 days will be
s taken at the lower rate.
INDEX.
Acceptances:
Page.
Banks granted authority to accept up to 100
per cent of capital and surplus
80
Distribution of
138
Annual report of the Board submitted to Congress.. 69,79
Argentina, exchange agreement with
76
Business conditions throughout the several Federal
Reserve districts
111-129
Capital issues committee of the Board
73, 77
Charters issued to national banks:
During the year
89
During the month.
92
Charts:
Katie of total reserves to aggregate net deposit
and Federal Reserve note liabilities
131
Federal Reserve notes and gold cover held by
Federal Reserve agents during year 1917
133
Check clearing and collection system, operation of. 75,107
Circular of the Treasury Department relating to
sale of war-savings certificates
87-89
Clerical costs, reducing of, in rediscounting paper.. 105
Discount operations of the Federal Reserve Banks. 134
Discount rates in effect
152
Earnings and expenses of the Federal Reserve Banks
for the year 1917
99-104
Earnings on investments of Federal Reserve Banks
for thefmonth
151
Erratum, number of banks declaring dividends
76
Exchange agreement with Argentina
76
Executive order of the President regulating foreign
exchange
75,81
Failures, commercial and banking, during the year.
89
Federal Reserve agents' fund, transactions under.. 106
Federal Reserve Banks:
Earnings and expenses of, for year 1917
99-104
Earnings on investments of, during the month. 151
Resources and liabilities of
142-144
Federal Reserve Board:
Annual report of, transmitted to Congress
69,79
Committee of, to pass upon priorities and capital issues
73,77
Federal Reserve notes:
Accounts of Federal Reserve Banks and agents. 145
Amounts issued and in circulation and amounts
of gold and required paper collateral held by
Federal Reserve agents during 1917
132
Federal Reserve notes-—Continued.
page.
Amounts issued and in circulation, etc.—Con.
Chart showing
133
Interdistrict movement of.
147
Fiduciary powers granted to national banks during
the month
80
Foreign exchange, Executive order of the President
regulating
75,81
Gold imports and exports
152
Gold settlement fund, transactions under
105,106
Informal rulings of the Board:
Maturity of notes due on Sunday or legal
holiday
108
Eligibility of a note of an acceptance house or
broker
„
108
Form of draft
109
Basis for figuring interest on rediscount transactions
109
Eligibility of a trade acceptance for rediscount
109
Law department:
Bills payable to the order of the drawee
110
Member banks, condition of—
70,148-151
National banks:
Charters issued to—
During the year 1917
.......
89
During the month of January.
92
Resources of, as shown by statement of the
comptroller
9o
President of the United States, executive order of,
regulating foreign exchange
81-86
Press statements issued by the War Trade Board,..
87
Reserves, ratio of, to net deposit and Federal Reserve note liabilities
130
Chart showing
131
Resources and liabilities of Federal Reserve
Banks
»
.
142
Review of the month
69-76
State banks and trust companies admitted to the
system up to January 31, 1918
92-95
Treasury certificates of indebtedness, issue of
71
War Finance Corporation, creating of
74,95-99
War-savings stamps, circular of the Treasury Department relating to sale of
87
War Trade Board, statements issued by
87
@FedFRASER