Full text of Federal Reserve Bulletin : February 1920
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FEDERAL RESERVE
BULLETIN
ISSUED BY THE
FEDERAL RESERVE BOARD
AT WASHINGTON
FEBRUARY, 1920
WASHINGTON
GOVERNMENT PRINTING OFFICE
1920
FEDERAL RESERVE BOARD.
EX OFFIC1O MEMBERS.
W. P. G. HABDINO, Governor.
ALBEBT STRAUSS,
DAVID F . H O U S T O N ,
Secretary of ttte Treasury, Chairman,
Vice Governor,
ADOLPH C. MILLEB,
CHARLES S. HAMLIN.
JOHN SKELTON WILLIAMS,
Comptroller of the Currency.
H E N B Y A. MOEHLENPAH.
GEOBGE L. HARRISON, General Counsel
W. T. CHAPMAN, Secretary.
W. W. HOXTON, Executive Secretary.
R. G, EMERSON, Assistant Secretary.
H . P A R K E B WILLIS,
W. M. IMLAY, Fiscal Agent
Director, Division of Analysisland Research.
M. JACOBSOKT,
W. W. PADDOCK, Chief, Division of Operations and
Examination.
Statistician.
J. E. CRANE,
Acting Director, Division of Foreign Exchange.
OFFICERS OF FEDERAL RESERVE BANES.
Federal Reserve Bank
Boeton
Governor.
Chft.1rrnn.ri-
Frederic H. Curtiss... Chas. A. Mores
Chas. E. Spencer, j r . . W. Willett.
C. C. Bullen
L. H. Hendricks.3
J.H.Case 2
E. R. Kenzel.38
L. F. Sailer 3
J. D. Higgins. 3
Charming Rudd.
A. W. Gilbart.3
W. A. Dyer.
Wm. H Hutt, 4jr
H. G. Davis.
M. J. Fleming
4
Frank J.Zurfinden ..
Geo. H, Eeesee.
C. A. Peple
1
New York
Pierre Jay
Benj. Strong, jr
Philadelphia
Cleveland
R. L. Austin
D.C.Wills....
E; P. Passmore
E. R. Fancher
Richmond
Cald well Hardy
George J. Seay
Atlanta
Chicago
Joseph A. McCord
Wm. A. Heath
M. B. Wellborn
J, B. McDougal
St. Louis
Minneapolis
KansastJity
Dallas
San Francisco
Wm. Me. Martin
John H. Rich
Asa E. Ramsay...
Wm. F. Ramsey
John Perrin
D. C. Biggs
R. A. Young
J. Z. Miller, jr
R. L. VanZandt
J. U. Calkins
1
±v. xi. x>roaaaU8
2
On leave of absence.
Acting governor.
aController.
M. W. Bell.
S. B. Cramer.
L. C. Adelson
C. R. McKay
"R fl
1
Cashier.
Deputy governor.
TLfWM/vii/i 4
C M . Attebery
J. W. White.
S. S. Cook.
C. A. Worthington . . . J. W. Helm.
Lynn P. Talley.
Lynn P. Talley
W. N. Ambrose.
Wm. A. Day
6
Ira Clerk.
C. H. Stewart.6
< Assistant to governor.
* Assistant deputy governor.
MANAGERS OF BRANCHES OF FEDERAL RESERVE BANKS.
Federal Reserve Bank of—
Manager.
New York:
Buffalo branch
Ray M. Gidney
Cleveland:
Cincinnati branch
Pittsburgh branch
L. W. Manning.
Geo. De Camp.
Richmond:
Baltimore branch
Morton M. Prentis.
Atlanta:
New Orleans branch
Jacksonville branch....
Birmingham branch
Nashville branch
Marcus Walker.
Geo. R. De Saussure.
A. E. Walker.
Bradley Curry.
Chicago:
Detroit branch
R. B. Locke.
Federal Reserve Bank of—
Manager.
St. Louis:
Louisville branch
Memphis branch
Little Rock branch
W. P. Kincheloe.
J. J. Heflin.
A. F. Bailey.
Kansas City:
Omaha branch
Denver branch
0 . T. Eastman.
C. A. Burkhardt,
Dallas:
El Paso branch
Houston branch
R. R. Gilbert.
Sam R, Lawder.
San Francisco:
Los Angeles branch
Portland branch
Salt Lake City branch...
Seattle branch
Spokane branch
Ira Clerk (acting).
C. L. Lamping. §
C. H. Stewart (acting).
C. J. Shepherd.
C. A. McLean.
SUBSCRIPTION PRICE OF BULLETIN.
The FEDERAL RESERVE BULLETIN ifl distributed without charge to member banks of
the system and to the officers and directors of Federal Reserve Banks. In sending
the BULLETIN to others the Board feels that a subscription should be required. It has
accordingly fixed a subscription price of $2 per annum. Single copies will be sold at
20 cents. Foreign postage should be added when it will be required. Remittances
should be made to the Federal Reserve Board. Member banks desiring to have the
BULLETIN supplied to their officers and directors may have it sent to not less than 10
names at a subscription price of $1 per annum.
N* complete sets of the BULLETIN for 1915,1916, or 1917 are available.
in
TABLE OF CONTENTS.
Page,
Review of the month
Business, finance, and industry, January, 1919: Summary
Special reports by Federal Reserve agents
Earnings and expenses of the Federal Reserve Banks, 1919
Gold reserves of principal banks of issue, 1900-1919
Changes in excess reserve (free gold) during 1919
Terms of sale in the principal industries
Official:
State banks and trust companies admitted to the system
Charters issued to national banks
Foreign branches of American banks
Banks granted authority to accept up to 100 per cent of capital and surplus
Fiduciary powers granted to national banks
Rulings of the Federal Reserve Board
Law department:
Preferential rates of discount on member bank notes
Miscellaneous:
Secretary Glass to president of Chamber of Commerce of United States on foreign
Statement of Herbert Hoover on European financial situation
Final report of Cunliffe Committee
Conference of clearing-house representatives to discuss interest rates on bank balances
Acceptance liabilities of member banks
Directors of Oklahoma branch bank
Commercial failures reported
Statistical:
International price index
Wholesale prices in the United States
Discount and interest rates prevailing in various centers
Physical volume of trade
Debits to individual account, December and January
Discount and open-market operations of the Federal Reserve Banks
Operation of the Federal Reserve clearing system
Resources and liabilities of the Federal Reserve Banks
Federal Reserve note account
Interdistrict movement of Federal Reserve notes
Condition of member banks in selected cities
Imports and exports of gold and silver
Estimated stock of money in the United States
Discount rates approved by the Federal Reserve Board
Diagrams:
Changes in excess reserve (free gold) during 1919
Par point map
IV
113
122
127
132
144
145
148
159
160
159
159
161
162
163
financing
137
140
141
157
158
159
160
164
168
172
174
185
188
194
195
200
202
203
209
210
211
147
194
FEDERAL RESERVE BULLETIN
VOL. 6
FEBRUARY, 1920.
REVIEW OF THE MONTH.
Little change has occurred during the month
of January in the condition of
Present Treasthe Treasury or in its relation to
ury situation.
the banking and financial market. Expenditures, exclusive of public debt
transactions, for the month amounted to approximately $348,300,000, while receipts on
the same basis were $255,300,000. General
conditions have been carefully reviewed by
the Secretary of the Treasury in a statement
issued on January 11, in which Mr. Glass set
forth in detail the financial condition of the
Government. The main point in the statement was his expression of the view that if
the present tax level is maintained, while
new expenditures are avoided, the turn in the
general tide of Government financing has been
reached. "As to the future," says the Secretary of the Treasury in the statement referred to,
"it may be stated positively that unless
Congress should enter upon new fields of large
expenditure, not included in the Treasury's
estimates, or should make a reduction in the
amount of taxes in addition to the reduction
made a year ago upon the recommendation of
Secretary McAdoo from about $6,000,000,000
to about $4,000,000,000, we may look forward
confidently to the retirement of the floating
debt out of the taxes provided by existing law
and miscellaneous receipts coming within the
general head of war salvage (although further
issues of tax certificates in diminishing amounts
will be necessary from time to time in the
intervals between income and profits tax installment payments), and to the gradual reduction of the funded war debt through the
operations of the Liberty loan bond purchase
fund and sinking fund already created by law.
On the other hand, should Congress embark
upon new fields of large expenditure or further
reduce taxes, it will, as I have already indicated,
be clearly necessary to revise the Treasury's
plans and call upon the country to finance the
resulting
deficit oy the issue of a new Liberty
loan.7'
Conditions in Treasury financing as they have
developed during the past few months, are
No. 2
outlined by the Secretary of the Treasury, as
follows:
"On the basis of Treasur daily statements
the Government's gross de t on August 30,
1919, was $26,596,701,648.01; on December 31
it amounted to $25,837,078,807.38; a reduction
of $759,622,840.63. Its floating debt (unmatured Treasury certificates of indebtedness) on
August 30 was $4,201,139,050.39; on December
31 it amounted to $3,578,485,800.37, a reduction of $622,653,250.02. The portion of the
floating debt requiring to
be refunded (socalled "loan certificates77) on August 30
amounted to $2,012,387,500; on December 31
it amounted 77
to $1,326,661,000, a reduction of
$685,726,500.
In the same statement Secretary Glass
further makes a brief forecast of the policy to
be pursued during January and February.
He says that—
"the loan certificates outstanding on December 31 were of issues maturing January 2,
January 15, February 2 and February 16, 1920,
and have been or will be paid from cash on
hand December 31, and from the proceeds of
the sale of tax certificates thereafter issued,
thus consummating the Treasury's plan for
financing the unfunded portion of the war
debt in such a way as to avoid any large
funding operations."
The Treasury and its requirements (barring
unexpected necessities) may thus be considered
to have ceased to be the most dominant factor
in the financial situation, and consequently the
Federal Reserve system is able to give primary
consideration to the industrial and commercial
requirements of the country.
These needs and requirements are undoubtedly very great. Trustworthy
Credit situation.
figures compiled for the year
1919 show that the issue of new capital by
corporations which came into existence during
that year was far greater than in any preceding
year. Reports to the Federal Reserve Board
from the several districts show that the urgent
necessity of enlarging building accommodation
both for business establishments and for
dwellings is compelling a resumption of construction even at the very high price levels
113
114
FEDERAL RESERVE BULLETIN.
FEBRUARY, 1920.
Some light has been cast upon the amount of
now prevailing. The requirements of the railaid required to avert starvaroads are estimated by some as high as $6,000,Foreign condi- ,.
•
, .
,
- ^
000,000 for capital expenditure during the next tions and needs. t l 0 n m C e r t a m P a r t s o f E u r 0 P e
three years, or perhaps $2,000,000,000 per anduring the past month in statenum. In many other directions the immediate ments issued by the Secretary of the Treasury
and demonstrable domestic credit and capital and by Mr. Herbert Hoover. Secretary Glass,
requirements are very large. Associated and in a communication to Congress, dated Jancontrasted with these are the calls of European uary 7, has commented briefly upon the need
nations for financing. What these calls should to save from starvation certain European
properly be is a matter as to which differ- countries in the following language:
ence of opinion exists. It is a fact, however,
" While it is impossible now to estimate defithat our balance of trade for the year 1919 was nitely just what will be required, I am of the
considerably above $4,000,000,000, of which opinion, from the information so far obtainable, that a minimum of $125,000,000 and a
amount not less than $1,750,000,000 was maximum
of $200,000,000 would suffice to
provided for by funds furnished by the Gov- supply the portion of relief to be assumed by
ernment, leaving more than $2,000,000,000 this Government, provided Congress should
which have been cared for through the exten- grant the necessary authorization to participate
sion of credit by commercial concerns and in alleviating this serious and desperate situation.
"As any relief undertaking, so far as conthrough such accommodation as the banks
cerns
the United States, would be primarily
or private investors have extended. Estimates a question
of supplying food, and as it is adof the amount required by European countries visable that the purchases of food for Europe
in actual reconstruction work during the com- should be handled and coordinated in such a
ing year vary within wide limits. Very high manner as not to increase the prices of food
figures have been stated by some, while less in the United States, I am recommending that
extensive estimates have been put forward by the United States Grain Corporation be emto purchase, sell, and deliver food
official representatives of several of the prin- powered
and relief supplies for Europe up to the amount
cipal European nations. The question how of $150,000,000, and that for the supplies so
nearly adequate domestic credit resources furnished credit may be extended by the
77
actually are for the meeting of such estimates Grain Corporation.
is perhaps the most fundamental issue upon
Mr. Hoover's statement, to which reference
which a conclusion should be reached. The has been made, was rather a discussion of the
demands of foreigners are coming at a time methods properly to be applied in meeting
when there will be other urgent demands. European requirements than a statement of
Capacity to meet these demands and to satisfy the amount or volume of these requirements
them depends entirely upon our surplus of pro- themselves, although under the latter head
duction over consumption. As the Board has some interesting reflections are offered with rerepeatedly stated, this is not a time at which it spect to the actual necessities of certain of the
is wise or desirable to increase the quantity of countries for food and maintenance. Among
unliquid securities or long term obligations the salient opinions expressed by Mr. Hoover
which are held by the banks on investment ac- in this statement, issued under date of January
count. The problem is thus essentially a prob- 6, is the suggestion made in speaking of Europe
lem of providing ways and means for the con- as a whole and in urging that the 70,000,000
servation of credit and for the diversion of people of prosperous nations who have not
resources from unnecessary, wasteful, and suffered in the war should also aid in European
extravagant uses to those which will most relief, that—
effectually serve the interests of the United "if we add bread supply on Government credit
States and its industries and of those foreign to these starving cities, with this and busiborrowers whose requirements are considered ness credits, we would be doing our share of
world responsibility. If we do undertake the
most urgently necessary.
solution of the bread question by our Govern-
FEBRUARY, 1920.
ment, our action would benefit and protect
the other nations of Europe from infection of
anarchy and chaos/'
Taking up the countries of Europe individually, Mr. Hoover says that "the neutral
countries have made money from the war,
have asked no favors and have given none."
Outside of interest to the Allies, Great Britain
admits she needs nothing but commercial credits, adds Mr. Hoover, who asserts that she has
ample unpledged foreign assets to cover her
needs, as has France. Mr. Hoover admits
that the position of Italy is difficult, and that
some of the larger cities may need breadstuff
substance beyond the ability of commercial
credits. Germany, he says, could obtain commercial credits if the Reparations Commission
would allow her to use her domestic resources
and unpledged foreign assets until she gets
upon her feet.
Of particular interest in connection with the
international financial situation is the positive
and unequivocal statement made by the Secretary of the Treasury, under date of January
30, and elsewhere printed in full in this number
of the BULLETIN, setting forth, in connection
with a proposed international financial conference to be held in Europe, precisely what
the attitude and policy of the Treasury, with
respect to European economic and financial
conditions and needs, are.
Developments during the month of January
do not reveal any immediate
chan e in the trade
g
situation
which underlies the problem
of European financing. Exports continue to
move abroad in very large volume. Official
figures for the year 1919 show that the actual
export balance in favor of the United States was
in round numbers $4,017,400,000. The returns
for the month of January are not as yet available, but indicate a continuance, although perhaps in somewhat lesser measure, of this
balance in favor of the United States. Recent
returns for export trade in the principal European countries, moreover, indicate only a very
moderate recovery of the ability to export.
Among these countries Great Britain is far in
the lead. There has been a material increase in
her power to ship a surplus of goods abroad, and
115
FEDERAL RESERVE BULLETIN.
this growth of ability is particularly notable
in her business with the United States. France
and Italy, likewise, show some improvement in
their export relations, but that improvement
is thus far only tentative and partial. American banks are not making any considerable
commitments in foreign exchange. Export
houses accordingly fear that they must reduce
their trade or else finance their customers out
of their own resources. In some cases it
would seem balances are being left abroad unpaid, but subject to an interest allowance
granted by the debtor. The shipper of the
goods thus cares for the financing of his customer by what is in effect a loan of capital
pending the time when exchange conditions
become easier. There has, however, been no
evidence of such an easing of the exchange
outlook. On the contrary, during the past
month the downward movement of sterling
was resumed, the quotation at one time going
as low as $3.49. German marks have also
touched the new low level of 1.09 cents, while
other continental exchanges have been weak
and declining. The following table carries
further the data furnished in the last issue of
the BULLETIN, and supplies the quotations for
some of the chief foreign currencies during the
month of January:
Foreign exchange rates.
Jan. 3.
High, j Low.
England
France
Italy
Spam
Argentina
Hongkong
China (Shanghai)
Japan
Jan. 10.
High.
3.79^
3.79$
3.75£
10.68 10.93 10.78
13.16 13.28 13.24
19.30 19.25 19.05
43.125 43-125 43.00
97.00
95.00 94.50
166.00 164.00 160.00
50.375 50.125 50.375
Low.
High. I Low.
' 3.681
' 12.07
14.22
19.65
43.25
\ 97.50
160.00
49.75
High.
3.73|
11.22 11.15
13.43 13.43
18.95 19.10
43.00
43.125
94.50 100.00
160.00 161.00
50.00 50.00
Jan. 24.
England
France
Italy
Spain
Argentina
Hongkong
China (Shanghai)
Japan
Jan. 17.
Low.
3.68*
11.63"
13.70
19.00
43.125
96.00
160.60
49.875
Jan. 31.
High.
3.61J
3.58|
11.61 13.38
13.72
15.62
18.60 18.85
43.125 43.25
94.50 99.00
158.00 163.00
49.75 49.75
Low.
3.50*
12.54
14.54
18.10
43.125
94.50
156.00
48.00
116
FEDERAL RESERVE BULLETIN.
The exchange situation thus depicted is an
intensification of that which has prevailed
during the final quarter of 1919. Save in those
cases where the American exporter is able directly or through the assistance of some exceptional condition to finance his customer
abroad, they constitute an increasingly difficult
barrier to overcome and tend strongly to cut
off the shipments of American manufacturers,
except in cases where foreign buyers are practically precluded from satisfying their wants with
any except American products. The trade
balances with Oriental and some South American countries continue to be adverse to us,
with corresponding results shown in exchange
quotations. A one-sided world trade in which
we export a large excess to Europe and import
a much more moderate but still considerable
excess from other parts of the world, has thus
been established. As shown elsewhere, one
incident in this situation is proving to be the
fairly steady movement of gold out of the
United States in settlement of unfavorable trade
balances with some non-European countries.
The policy of the United States with respect
to European needs for supplies, in so far as
governmental action is concerned, has been
fully stated by the Secretary of the Treasury
and from time to time reviewed in the BULLETIN. It has undergone no alteration in principle, notwithstanding that for humanitarian
reasons the Secretary of the Treasury has during the past month recommended to Congress
necessary measures involving the sale of perhaps $150,000,000 worth of supplies on a pure
credit basis for use in those portions of Europe
which have been more seriously affected by
war and the conditions subsequently growing
out of it.
The problem of the United States is clearly
that of conserving its credit
Conservation of
resources
and of applying them
credit.
in those directions where the
greatest need for them is recognized. Domestic demand has been competing with
export demand. Credits have thus far been
arranged which have enabled shipments to
Europe to be made. Experience during the
past year with its almost unparalleled expan-
FEBRUARY, 1920.
sion of banking liabilities, involving in the
national institutions alone a growth of over
$2,000,000,000 of deposits, has shown that the
process of credit conservation is fully as
urgently needed as it was during the war.
The situation was characterized by Governor
Harding in an address before^the Massachusetts
Bankers' Association on January 8, as follows:
"Our banking system is therefore passing
through a transition period. During this
transition period there should be an effective
control of credits, gradual liquidation, and
such temporary expansion only as may be
necessary to meet seasonal requirements or
emergencies. There should be a less lavish
but more efficient use of capital and credit,
extravagance should be discouraged in every
way possible, and the production of essential
commodities increased. I t is important that
the world should get back to work, but in
order to provide steady employment for the
people of our country, it is necessary that there
should be a sustained demand for the products
of our fields and factories, mines, and forests,
and, in order to maintain this steady demand,
it is necessary to provide markets abroad for
our surplus production."
Working along this line of policy, the Federal
Reserve agents in the several districts have in
some cases issued to member banks circular
letters of suggestion designed to encourage the
curtailment of unessential loans and to explain
to them the real purpose of variations in the
discount rate, while others, although making
no public statement, have undertaken to secure
the cooperation of member banks through informal conversations and correspondence intended to aid in this process of reducing inflated
loans and of confining reserve credit to the
financing of necessary business operations.
An indication of the need of effective control
in the various districts is furnished by letters
of recommendation or direction which have
been issued by the various Federal Reserve
agents, outlining to member banks the general
credit policies to be locally pursued. A
brief summary of certain of these indications of policy is as follows:
Boston.—Heavy borrowers have been asked
to reduce their applications. It has been
pointed out to them that the January liquida-
FEBRUARY, 1920.
FEDERAL RESERVE BULLETIN".
117
tion has been slight and that unless an actual in Washington on January 6 in response to an
policy of curtailment is adopted, the pressure invitation of the Federal Reserve Board for
for credit will be continuous and increasing in the purpose of discussing the question of rates
of interest to be paid by banks upon deposits
volume.
New York.—The bank in announcing ad- made with them by other banks. Subsequent
vances in rates, has called attention of borrow- to this session, the New York Clearing House
ers to the fact that as the volume of Govern- Association on January 16 adopted a rule fixment securities falls off, the released credit ing the maximum rate on such deposits of 2\
should be devoted to the reduction of indebted- per cent, while similar action was recommended at an adjourned session of the Washness of the Federal Reserve Bank.
Richmond,.—The attention of borrowers has ington conference which took place in Chicago
been called to the fact that liquidation of credit on January 23. The discussions at the conshould be begun through the application of in- ference of January 6, however, did not concome savings to the payment of loans made fine themselves to this important matter of
upon Government securities, while commercial detail but covered the broader question of
enterprises should and must operate more credit conservation and of the relation of
within their own capital means, and banks rates of discount thereto. In speaking to
must operate more within their own resources. the bankers at the session of January 6,
Cleveland,.—The Federal Reserve Bank has Governor Harding expressed his views on the
announced its intention to supervise and inves- situation in the following language:
" There is no question that the credit structigate all paper offered for rediscount, in order
to make sure that the proceeds are to be used ture of this country is expanded. Such a condition is inevitable; there is no blame that
for necessary commercial industrial, or agri- should
attach to anyone for such a state of
cultural purposes.
affairs, for we have passed through the greatest,
Minneapolis.—Member banks have been ad- most destructive, and most expensive war of all
vised that the resources of the system are not history. All wars are accompanied by increase
to be used to operate in the investment market, of taxation. In most of the countries there has
or to encourage speculative movements. The been inflation of currency, and in all countries
expansion of credits.
Federal Reserve Bank has used every pre- a great
u
While we have turned our backs upon the
caution to eliminate such use of its facilities, period of war financing and have directed our
including under the head of speculation price steps toward a more normal banking policy, we
increases and hoarding of commodities.
can not expect this year, nor next, nor in the
San Francisco.—The public has been in- immediate future, to regain a banking position
formed that the country is at present passing which would be regarded as normal when
through an era of extravagance, and that it is judged by prewar standards.
''We can only reach such a position when, as
the duty of banks now to exercise their best the result of increased production and reduced
efforts toward correction of unsound conditions^ expenditure on the part of the people and the
avoiding especially speculation both in securi- Government, outstanding obligations of the
Government have been very greatly reduced and
ties and in commodities.
During the month of January the reserve the remainder has been absorbed by the investing
percentage of the Federal Re- public. The process is one which will require
time and patience. But we can formulate our
Discount r a t e s e r v e SyStem has continued to policies now. We must have a definite policy.
fluctuate within narrow limits
'' We believe that by calling the attention of
and has shown but little improvement. Most the banks of the country to the fact that, after
of the time the percentage has varied between all, the resources of the Federal Reserve Banks
45 and 46 per cent, but at some of the banks are not infinite, and that not only is there a
check provided upon rediscounting in the way
the figures have at times run down very much of
advancing rates, but a direct check as outbelow this level. The situation was fully lined in section 4 of the Federal Reserve Act,
stated at a conference of bankers which met which, in defining the duties of board directors
118
FEDERAL. RESERVE BULLETIN.
of a Federal Reserve Bank, requires them, in
granting their loans and discounts and accommodations, subject to the orders of the Federal
Reserve Board, to pay due regard to the wants
and requirements of every other member bank,
to administer the affairs of their bank fairly and
impartially, keeping in view the possible requirements of all members; and it follows that
should three or four members, or a group of a
dozen or so member banks, be permitted,
through their very large discounts, to absorb
all the loanable funds of a Federal Reserve
Bank, it would be impossible to grant reasonable accommodations to all member banks.
"But it is going to be necessary, perhaps, to
raise rates beyond their present level. I am not
here to make a prophecy nor to outline future
policies, but you should all bear in mind that a
further rate increase is a contingency which
must be reckoned with."
Acting upon the credit situation as analyzed
and observed at the various
Federal Rese
disrates. ^
™ Banks> a n d i n
accord with the views of the
Board as above set forth, the discount rates at
the various institutions have been raised, the
action being made public on January 21 and
the following days. These increases have
raised the rate on commercial paper to a level
of 6 per cent, secured paper protected by Liberty bonds and Victory notes being 5J per
cent. In the following table is furnished the
revised discount rate schedule of the system
as now in effect:
FEBRUARY, 1920.
The intent of these advances has already been
so fully explained as to necessitate no additional comment. They are, in brief, an effort
to restrict the rapid growth of credit, to which
attention has been called during recent weeks.
The situation which is called forth by this
action is illustrated by the following table,
which exhibits the growth of bank loans and
investments (including amounts discounted
and rediscounted with Federal Reserve Banks)
on the one hand and of rediscounts and bills
payable with Federal Reserve Banks on the
other of selected member banks (some 800
in number) of the Federal Reserve System.
[In millions of dollars.]
Date.
Oct. 31
Nov. 28...
Dec. 19
Dec. 26
Number
of banks.
Loans
Rediscounts
(including
and bills
rediscounts)
payable
and investwith
ments of
Federal
selected memReserve
ber banks.
Banks.
1919.
1920.
Jan. 2
Jan. 9
Jan.16 . . . .
Jan. 23
Jan. 30
784
795
790
797
16,115
16,156
16,407
16,521
1,698
1,813
1,638
1,833
798
802
803
803
804
16,753
16,868
16,852
16,840
16,762
1,870
1,729
1,757
1,824
1,834
It is much to be desired that variations in
the discount rate should serve
Other methods
as
a sufficient indication to
of restriction.
member banks of the policy
Discount rales of Federal Reserve Banks in effect Feb. 2, 1920.
which must necessarily be pursued in presentDiscounted bills maing rediscount applications to Federal Reserve
turing within 90 days
Agri(including member
Banks. This, however, is not always the case
banks' 15-day collat- Bankers Trade cultural
eral notes) secured accept- accept- *md
and perhaps is not always possible, even where
ances ances
livebydisstock
first
consideration is being given to the indusmaturFederal Reserve
countpaper
Treasing
Bank—
ed formaturtrial
and commercial requirements of the
ury Liberty Otherwithin
meming
wise
certifi- bonds secured
90
ber
within
country
and where everything possible is being
cates
and
days.
banks.
and
91 to 180
of in- Victory unsedays.
done to restore the proper balance between the
debt- notes. cured.
edness.
volume of credit and the volume of goods.
Boston
The
process is necessarily more or less gradual
New York
Philadelphia...
and
can be completed only when very conCleveland
Richmond
siderable
redemptions of bonds have been
Atlanta
Chicago
made
and
the remainder thoroughly absorbed
St. Louis
Minneapolis
by the public. In effecting this object, howKansas City....
ever, it has been found desirable by Federal
Dallas
San Francisco..
Reserve Banks throughout the country to
NOTE.—Rate on paper secured by War Finance Corporation bonds
loans
1 per cent higher than the rate on commercial paper shown in column 3. scrutinize with care the rediscount
FBBRDAET, 1920.
FEDERAL RESERVE BULLETIN.
allowed to their several members, and where
these were excessive or were being employed
for pure profit or for the support of unessential
business operations, to recommend to them in
some cases limitation of the amount of credit
thus extended by them. This is a process
which calls for the direct cooperation of the
various members in the restriction not only of
those loans which are employed in the operations on the securities markets, but also of
those which are used in facilitating the carrying of large stocks of commodities which are
thus hoarded or withheld from consumption.
It is highly important, also, that all long credits
granted in connection with exports be kept out
of the commercial banks and that so far as
practicable the liquid condition of the banks
be preserved by restricting their discounts and
advances to paper of short maturity growing
directly out of agricultural, industrial, or commercial operations.
The unfavorable exchange conditions to
High prices and which reference has already
the foreign ex- been made have developed with
changes.
a n e r a of higher prices at home
and abroad. In Europe, particularly, prices of
commodities drawn from the United States
have advanced to excessive figures, because of
the added element of cost entailed through the
adverse exchange. While exchange rates, as
pointed out in previous issues of the BULLETIN,
are to be regarded as symptomatic rather than
causative in character, in times of transition
and readjustment such as the present, it may
nevertheless be true that they have a momentary effect in embarrassing and interrupting
the course of international trade. The situation
lends especial interest to the final report of the
committee on currency and foreign exchanges,
which was originally constituted in Great
Britain in January, 1918, under the chairmanship of the late Lord Cunliffe. This final
report is published elsewhere in the present
issue of the BULLETIN. The findings do not
differ in substance from those of the original
or preliminary report; they emphasize the conclusions which were reached in that document.
The committee expresses a strong hope that the
Government will confine its use of bank loans to
119
making provision for purely temporary necessities. It recommends a step already noted in
a former issue of the BULLETIN that the actual
maximum fiduciary circulation in any year shall
be made the legal maximum for the following
year, subject only to certain emergency provisions. The chancellor of the exchequer, in reply to a question in the House of Commons, has
expressed agreement with the committee's view
that increased production, cessation of Government borrowing, and decreased expenditure,
both public and private, are the first essentials
to recovery.
The continuous rise in prices and inflation of
credit are arousing more and more anxiety in
foreign countries, and particularly in Great
Britain. Conservative writers on the subject
recommend the early funding of the floating
debt, and the issue of fresh currency only upon
a basis controlled by the available gold supply.
Meanwhile, index numbers representing the
level of prices continue to show a rapid upward
movement both here and abroad. The index
number of the Bureau of Labor Statistics shows
for the month of December a further advance in
prices amounting to 8 points, while food prices
alone appear to be increasing even more rapidly.
Gold imports for the calendar year 1919
totaled 76.5 millions, compared
Gold and silver ^ fe m mi O ns for the calendar
movements.
year 1918, while gold exports
totaled 368.2 millions, compared with 40.9 millions exported in 1918. Net gold exports for
1919 amounted to 291.7 millions, as against
21.1 millions the year before. The 1919 figures
are, however, exclusive of 173.4 millions of gold
received from the Reichsbank for foodstuffs
sold to the German Government. This gold is
held at present in London, with the exception
of about 42 millions which have been sold by
the Federal Reserve Banks and released to foreign interests. Counting the 131.3 millions
held on December 31 by the Bank of England
for the Federal Reserve Banks as an offset
against the net exports above shown, the net
loss of gold through transfer abroad is reduced
to 160.4 millions. Of the gold imports over
three-fourths were received from Canada,
120
FEDEEAL RESERVE BULLETIN.
Hongkong, the United Kingdom, and Mexico,
while of the gold exports 94.1 millions were
consigned to Japan and over 125 millions to the
other Far Eastern countries; i. e., China, Hongkong, British India, Straits Settlements, and
Dutch East Indies; 56.6 millions to Argentina;
33 millions to other South American countries;
29.8 millions to Spain; and 10.4 millions to
Mexico. Net imports of gold since August 1,
1914, were $765,520,000, as may be seen from
the following exhibit:
[In thousands of dollars.]
Imports.
Exports.
Excess of
imports
over
exports.
23,253
451,955
685,745
553,713
61,950
76,534
492
104,972
31,426
155,793
372,171
40,848
368,185
14,727
181,719
420,529
529,952
181,542
21,102
1291,651
114,235
1,853,642
1,088,122
765,520
FEBRUARY, 1920.
10, have practically ceased since and been superseded by large gold shipments to that country
during the latter part of the year.
Net exports of silver since August 1, 1914,
were $432,742,000, as may be seen from the
following exhibit:
[In thousands of dollars.]
Aug. 1 to Dec. 31,1914
Jan. 1 to Dec. 31,1915.
Jan. 1 to Dec. 31,1916.
Jan. 1 to Dec. 31,1917.
Jan. 1 to Dec. 31,1918.
Jan. 1 to Dec. 31,1919.
Jan. 1 to Jan. 10,1920.
Total
Aug. 1 to Dec. 31,1914.
Jan. 1 to Dec. 31,1915
Jan. 1 to Dec. 31,1916
Jan. 1 to Dec. 31,1917
Jan. 1 to Dec. 31,1918
Jan. 1 to Dec. 31, 1919
Jan. 1 to Jan. 10,1920
Total
1
Excess of exports over imports.
Gold imports for the 10-day period ending
January 10 of the present year amounting
to $491,980, were received principally from
Canada, Mexico, and Peru. Of the gold exports amounting to $14,727,348, $5,934,239
were consigned to China, $3,706,301 to Japan,
$2,456,675 to Hongkong, and $1,500,000 to the
Straits Settlements, the remainder going principally to Mexico and British India.
Silver imports during 1919 totaled 89.4 millions, compared with 71.4 millions in 1918,
while silver exports during 1919 were about 239
millions, compared with 252.8 millions the year
before. By far the larger portion of the silver
exported in 1919 was consigned to the Far East,
British India having received 109.2 millions,
China 77.6 millions, and Hongkong 10.2
millions. The three countries named account
for over 80 per cent of the total value of
silver shipped to foreign destinations during the
past calendar year. It is worth noting that
silver exports to India, which constituted by
far the larger portion of the total foreign silver
shipments during 1918 and 1919 to September
Imports.
Exports.
Excess of
exports
over
imports.
12,129
34,484
32,263
53,340
71,376
89,410
4,336
22,182
53,599
70,595
84,131
252,846
239,021
7,706
10,053
19,115
38,332
30,791
181,470
149,611
3,370
297,338
730,080
432,742
About one-half of the $4,336,000 of silver
imported during the 10-day period ending
January 10, was received from Mexico; Peru,
Salvador, Honduras, and Canada furnishing
most of the remainder. Of the silver exports,
amounting to $7,706,000, $4,677,000 were
consigned to China and $2,526,000 to Hongkong.
For the four weeks between December 19,
1919, and January 16, 1920,
The
t.
banking
,
,
,
.
J
.l%
\
,.
'
member banks m the leading
git
cities report further net liquidation of 47.4 millions in United States Government securities, largely Victory notes and
Treasury certificates. War paper holdings, less
rediscounts, show a decrease of 20.4 millions.
This decrease is, however, more than fully
offset by an increase for the period of 85.2
millions in loans secured by stocks and bonds,
which at the close of the period under review
constituted 21.1 per cent of the total loans
and investments of the reporting banks. All
other loans and investments, composed mainly
of ordinary commercial loans, show an even
larger growth of 264 millions, 58 per cent of
which represents the increase for the banks
outside the Federal Reserve Bank cities. Collateral notes, of reporting banks held linger
discount at the Federal Reserve Banks declined in the meantime 44.8 millions, so that
FBBRIJABY, 1920.
FEDERAL RESERVE BULLETIN.
the margin between the loans and investments
of the reporting banks and their borrowings
from the Federal Reserve Banks shows an
increase of 326.3 millions for the period. As
against a reduction of 224.8 millions in Government deposits other demand deposits (net)
show an increase of 545.3 millions, and reserve
balances with the Federal Reserve Banks an
increase of 157.1 millions.
Data for the Federal Reserve Banks available for the period between December|26, 1919,
and January 23 of the present year indicate a
slight downward trend in their assets, both
discounted and purchased paper being smaller
at the close of the period than four weeks before. Total discounts held by the Federal Reserve Banks declined 41.5 millions, a larger
decline in the holdings of war paper being
partly offset by an increase in the holdings of
ordinary commercial paper. As the result of
rate revision and the partial elimination of the
differential between 15-day and 90-day paper
there is seen an increase of 135.9 millions in the
holdings of 90-day paper, and a decline of the
proportion of 15-day discounts to total discounts from 68 to 62 per cent. During the
period under review the New York bank rediscounted considerable amounts of paper with
other Federal Reserve Banks, resulting in an
increase by January 16 in the amount of paper
held under discount for other Federal Reserve
Banks from 40.6 to 119.8 millions. By the
following Friday the total had been reduced
to 89.1 millions held by five Federal Reserve
Banks. As against this large increase in the
volume of interbank discounts, holdings of
bankers7 acceptances purchased from jthe Bos-
121
ton and New York banks and reported by six
other Federal Reserve Banks show a reduction
of 79.4 millions. In accordance with the large
increase in member banks7 demand deposits
the Federal Reserve Banks show an increase
from 1,704.5 to 1,817.8 millions in their net
deposits. On the other hand, Federal Reserve
note circulation declined steadily during the
four weeks from 3,057.6 to 2,844.2 millions, or
at an average weekly rate of over 53 millions.
Losses of 51.8 millions in gold reserves and of
47.6 millions in total cash reserves were caused
principally by export withdrawals of gold,
also by sales of gold held in London and
exchange of gold for other reserve cash. The
reserve ratio of the banks at the end of the
period—44.8 per cent—shows no change from
the ratio reported four weeks before.
Hon. David F. Houston, who since March 6,
1913, has been Secretary of
New Secretary A . u
, , -,
A n
of the Treasury. g <™lture, was nominated by
the President January 28, 1920,
to be Secretary of the Treasury in succession
to Hon. Carter Glass. He took the oath of
office in his new appointment February 2.
Mr. Houston, as one of the three members of
the Reserve Bank Organization Committee,
had much to do with the inception of the
Federal Reserve System. He was a frequent
adviser at the time that the Federal Reserve
Act was being framed and for many years has
been a close student of economics, finance,
and banking. As an ex officio member and
chairman of the Federal Reserve Board, the
new Secretary will have much to do with the
shaping of banking policies.
122
FEDERAL RESERVE BULLETIN.
FEBRUARY, 1020.
BUSINESS, INDUSTRY, AND FINANCE, JANUARY, 1920.
Reporting heavier trade demands and in
many cases greater " prosperity"' than ever
before in the history of their districts, Federal
Reserve agents nevertheless point to shortened
lending power, less easy credit and dangers
of various kinds growing out of extravagance,
excessive prices and overtrading. Labor conditions have been on the whole encouraging
and the demand for products strong and active.
Although emphasis is thus placed upon
spending power and the volume of business,
many countervailing considerations are receiving attention heretofore not granted them.
From district No. 1 it is stated that "never in
the history of the mercantile life of New
England was Christmas trade so enormous,
and never was purchasing power exercised with
such extravagance." Yet, "in spite of the
orgy of spending, the people of New England
have put into its savings institutions during the
past year approximately $190,000,000. There
is no reason to become pessimistic with respect
to existing conditions."
In district No. 3 manufacturing business
"continues to be offered in large volume," and
although retail trade shows a natural falling off
from the holiday level, it is "in excess of last
January/' "The stores report difficulty in
procuring supplies due to the heavy demand.
Collections are excellent and cash payments
comprise a large part of total receipts."
In district No. 4 the present demand for
manufactured products and the present fever
of extravagance has not reached its zenith,
while foreign trade is rapidly developing.
In district No. 5 "the end of the year brings
a repetition of the reports of unprecedented
prosperity. Farmers, merchants, manufacturers and bankers have all had record years.
Collections were never better and many old
accounts have been liquidated."
District No. 6 notes that the "public mind
is giving more thought to the economic situation," and y e t " there has been little if any slack-
ening in the wholesale or retail trade during January. All lines report very limited stocks on
hand and new supplies difficult to obtain."
In district No. 7 "demand for commodities
outruns any possibility of providing a supply.
The general volume of business in the Middle
West continues at a high level. Farming communities continue to enjoy the prosperity
which has resulted from several years of very
high prices. Nevertheless, there is running
through the banking mind in the Middle West
the thought that "this country can not long
continue the extraordinary volume of foreign
exports," while there has been a "rather
liberal use of credits in all lines."
District No. 8 finds that *' the holiday trade
was in many instances unprecedented, while
prices continue high, demand for money at a
record level, and collections good."
In district No. 9 there is "sufficient work for
all who care to work. Factories are running
full time and booking all the orders they can
fill," and there is a "continuous demand for a
larger supply of skilled labor."
District No. 10 reports that 1919 was a
record year of business effort and that at the
opening of the new year the business situation
continues active, while payments for the first
week in January are from 10.4 per cent to 12.7
per cent better than in the corresponding week
last year. "The tremendous buying power of
the people" has continued.
In district No. 12 no strikes or labor disturbances are in progress, bank clearings have
increased, retail trade continues active, averaging 45 per cent greater than in December,
1918, and there is a strong demand for all
classes of products.
Some districts report that an indication of a
limit of buying power is apparently in sight.
At Boston the opinion is expressed that increases in rediscount rates are required to
check further expansion of unnecessary credits.
In Philadelphia it is reported that the present
FEBRUARY, 1920.
FEDERAL BBSERVE BULLETIN.
situation can be remedied chiefly by increased
production which is needed. In Cleveland the
peak of high prices has not yet been reached,
while "the evil effects of underproduction and
labor unrest" are present in certain lines. In
Richmond " universal criticism of the present
extravagance of the public and of inefficiency
in production" is wide, but there is "no abate"
ment of these symptoms." In Atlanta "there
is great need for universal thrift in order to
prevent the conditions which a continuous increase in the price of commodities will bring/'
In Chicago u there is a terribly curtailed supply
of goods77 and "a persistent maintenance of
the high cost of living." In St. Louis little has
been accomplished in fighting the cost of living
and it is likely that "little will be accomplished"
until individuals stop indulging in extravagance. Banks are besieged by small borrowers
who wish to borrow on Liberty bonds. In
Kansas City there is a tendency to "defer payment of war obligations, to further inflate
credits, and thus prolong the abnormally high
prices."
Agricultural operations in most districts are
now practically suspended owing to the presence of midwinter conditions which have prevented any change in the productive outlook
from manifesting itself, leaving in most placee
only marketing problems to be dealt with.
From Minneapolis, however, it is reported that
the outlook is good. The western half of the
district has been covered by a good blanket
of snow which has disappeared under warm
winds, but most of the moisture has gone
into the ground. Conditions in the eastern
part of the district are very favorable to winter
wheat and rye, and while the seed wheat
situation seems likely to give some concern,
much of the available seed being of doubtful
germinating quality, it is believed that the
shortage will not be really acute. In the St.
Louis district winter wheat acreage has been
materially reduced as compared with last year,
which, however, was unusually large. In
parts of the district the crop has been damaged by excessive rains and sleet. An average
123
yield in tobacco is expected and about onequarter of the last cotton crop is still unpicked. In Kansas City the winter wheat area
has likewise been reduced, being about 16,500,000 acres as compared with 20,939,000
a year ago, a reduction of 20.6 per cent. There
is a tendency on the part of farmers to get back
to normal crop growing. The movement of
grain to the markets has been in satisfactory
volume. On the Pacific coast heavy snows and
cold weather in the northwest has brought live
stock off the ranges and forced early winter
feeding. Winter wheat has been undamaged
by the cold and the heavy snows have increased the moisture content of the soil. Fruit
trees have suffered some damage. A large
movement of canned goods and other products
is in progress.
As regards the live-stock situation, receipts of
cattle at 15 primary markets during December
are reported as 1,650,315 head, corresponding
to an index number of 164, as compared with
2,046,664 head during November and 1,706,945
head during December, 1918, the respective
index numbers being 203 and 169. Receipts of
sheep during December were 1,589,237 head,
as compared with 1,114,761 head a year earlier
and 1,743,189 head during November, 1919,
the respective index numbers being 116, 82,
and 128. Receipts of hogs show a change from
3,785,870 head, corresponding to an index
number of 172 during December, 1919, to
4,197,313 head, corresponding to an index
number of 191 during December, 1918, as compared with 2,715,955 head, corresponding to
an index number of 124 during November.
From Kansas City it is reported that December, 1919 and December, 1918, receipts of cattle
and sheep at the six markets of that district
were 6,821,451 and 8,906,561, respectively,
while receipts of hogs were 9,777,671, as compared with 10,680,622 in December, 1918.
The live-stock markets have been in an unsettled condition throughout the year 1919
and losses at the six markets referred to, as
compared with the 1918 record, were 8.2 per
cent of cattle and 8.5 per cent of hogs, although
124
FEDERAL RESERVE BULLETIN.
an increase of 17.1 per cent for sheep and calves
for 1919 is shown by the reports.
Flour milling has been heavy during the latter part of 1919 and the opening of 1920 in the
Kansas City district. At Kansas City flour
output equaled 84 per cent of milling capacity,
at Omaha it was slightly above 94 per cent
capacity, and at interior points it was 80 per
cent capacity. This compares with the output
of a year ago of 75 per cent capacity at Kansas
City, 80 per cent capacity at Omaha, and 72
per cent capacity at interior mills. Car shortage exists in a good many regions, including
the flour-producing sections. Nevertheless the
output of flour has been larger in many sections
during 1919 than in 1918.
Iron and steel production has reached a high
record level, but the demand for production is
keeping well ahead of supply.
Independent
producers are regulating their quotations more
nearly to conform to the present intensity of
demand and advances in operating costs.
Steel corporation mills continue to adhere to
minimum prices, but they are quoted only to
regular customers. Total unfilled orders of
the United States Steel Corporation on December 31 were the largest since October 31, 1918,
while December showed the greatest single
monthly gain in history. This amounted to
1,137,036 tons. Total unfilled orders during
the last seven months increased over 4,000,000
tons. Some of the independent mills are in a
similar position.
Pig-iron production also
shows an increase from 2,392,350 tons during
November to 2,633,268 tons during December,
the respective index numbersIbeing 103 and 114,
The Philadelphia district reports a heavy
demand for pig iron and foundries are unable
to produce in sufficient amounts. Prices are
advancing and there are practically no stocks
on hand. Steel producers are running at their
maximum so far as the material and labor situation will permit. There is a general feeling
that the next six months will continue to be
marked by business of a very large volume.
In district No. 6, industrial plants around Birmingham are working to capacity, with suffi-
FEBRUARY, 1920.
cient orders to keep them actively employed
for some time to come. Pig iron production
was not quite so large in 1919 as in 1918, the
decrease being due to difficulty in securing raw
material and to inefficiency of labor. There is
now a shortage of railroad equipment with
which to ship pig iron.
The termination of the coal strike has removed the last obstacle from the path of the
miners who wished to return to work, but in
spite of this fact and the continuance of a strong
foreign demand, the output of coal is limited
by the failure of railroad companies to deliver
cars to the mines as needed. The car problem
must be solved before a material betterment can
be expected. In the fourth Federal Reserve
district some mines are operating at only 10 per
cent of capacity on this account, and 136 mines
in the Pittsburgh district report a loss of
200,000 ton,s of production during the last two
weeks in December. In district No. 3 the production of bituminous coal is gradually recovering, but is not yet up to normal, while the car
situation is bad.
The anthracite industry
closed the year with an estimated production
of 68,700,000 tons, which is 10,000,000 tons
short of the preceding year. The market demands are at the present time absorbing the
output of domestic sizes. The output of bituminous coal has, however, shown a steady increase in that district during the past month,
the output for December amounting to
1,325,000 tons as compared with 1,000,000 tons
in November. In the country as a whole production during December was 36,612,000 tons,
corresponding to an index number of 99, as
compared with 20,303,000 tons, corresponding
to an index number of 55 during November,
and 40,184,000 tons, corresponding to an index
number of 108, during December, 1918. In anthracite coal shipments during December were
6,138,460 tons, as compared with 5,971,671
tons during November, and 5,736,260 tons
during December, 1918, the respective index
numbers being 109, 106, and 102. Special
comment is offered in some districts with respect to the tremendous increase in the use of
FBBRUAKT, 1920.
FEDERAL, RESERVE BULLETIN.
oil as fuel, the production of crude oil being on
the increase, while prices are approaching the
level where new drilling operations may be expected » From the Kansas City district it is
reported that during the 12 months of 1919 the
output was 130,000,000 barrels of crude oil, as
against 145,000,000 barrels in 1918, the loss in
production amounting to 10.1 per cent, due to
shortage of labor and materials and scarcity of
machinery. During the year, however, it was
a fight to develop new production in order to
offset the natural decline of production from
old wells. The demand for oil at present is so
great that the supply is not keeping pace with
it and it is expected that during 1920 the development of oil on a larger scale than ever before
will be undertaken. For the past December
665 new wells were completed, with 50,425 barrels of daily production.
In wool and textile manufacture there has
been some easing of the situation, prices being
slightly lower for the medium grades of raw
wool, and dealers passing on these inducements
to the manufacturer in the belief that the public may be willing to buy less expensive goods.
Mills, however, continue to be sold far ahead
and particularly the better goods are in very
great demand. In the Philadelphia district,
however, the demand for the finest grades continues very strong, while the percentage of
wools free from defect is comparatively small.
Yarns are scarce, but in so far as materials can
be obtained, manufacturers are very busy. It
is expected that during the next few months
heavy demand will continue. In clothing, the
claim is made that consumers have shown a
finical tendency to demand only the finest
qualities, while prices of ready-made articles
are tending materially higher and labor conditions are such as to entail heavy cost of production entirely independent of raw material
expenses.
Cotton textile mills are running to capacity
and in some instances are sold through June
and are accepting contracts for as late as September in the New England district. The purchase of raw cotton has, however, fallen off of
late and manufacturers are coming to the view
125
that the limit of prices has been reached. There
is no apprehension as to the future of the industry in New England, extensive additions to
factories being under way. In the Philadelphia
district the finer grades of cotton yarns are preferred, while stocks of yarns are not increasing.
It is becoming increasingly difficult to place
new orders owing to the fact that spinners have
sold out so far ahead. Prices of yarns are
trending upward and the price of finished
goods is high and is expected to go higher.
The question in the minds of buyers is said to
be not so much that of price as of delivery.
From the Middle West prosperity in wholesaling is reported, wholesale dry-goods dealers
reporting increases running from 47 per cent
to 100 per cent and even over 300 per cent for
December, as compared with the corresponding
month a year ago.
In leather and shoes there has been apparently some sign of a slowing down in demand for
the highest cost goods, with corresponding increase in demand for the lower grades. The
leather market has been firm and stable and is
likely to remain unchanged for some time to
come. Some manufacturers fear further wage
increases which may offset declines in other
items of production cost. Factories, however,
are sold well into the spring and their capacity
is not sufficient to take care of business offered.
In automobile manufacturing the sale of
pleasure cars seems to be reaching new proportions. Trucks are in but little demand,
although there has been some recent improvement. Hardware business is flourishing, and
the volume for December and the first half of
January was considerably in excess of the previous year. Manufacturers of electrical specialties report business from 80 per cent to 115
per cent beyond that of December, 1918. Harvesting machinery manufacturing in some districts is problematical owing to the uncertainty
of the wheat crop. Manufacturers of chemicals
are enjoying a steady trade. The stove business
is not normal in volume.
The housing situation in the Middle West
continues to be fundamentally important. In
126
FEDERAL RESERVE BULLETIN.
the Kansas City district the year 1919 recorded
an increase of 130 per cent over 1918, the estimated cost of new buildings amounting to more
than $64,000,000. In district No. 1 the period
of building postponement has apparently been
passed, immediate necessities being of such urgent character that they must be met. It is
predicted that the current year will break all
current records. Certain classes of materials,
however, seem to be absolutely impossible to
deliver. In the Philadelphia district a good
volume of demand for many classes of materials is reported. Stocks of lumber on hand are
scanty. In Chicago the structural trades are
operating at one-half normal speed owing to
inability to obtain structural steel. Prohibitive prices and extreme scarcity control the
brick situation. In district No. 6 the demand
for lumber is in excess of the supply and prices
continue very high. The winter season has
been unfavorable for production. The naval
stores industry is quiet, but producers are engaged in preparing for the coming season. Demand is improving. Foreign purchasing is
restricted on account of high exchange rates.
Taking the country as a whole, the characteristics of the situation are extremely strong demand for building materials, particularly for
lumber, and very low stocks, coupled with unfavorable transportation conditions which have
prevented deliveries. Early spring building
operations will be correspondingly difficult.
During the month of December there was an
increase of 8 points in the Bureau of Labor
Statistics index number, the index number for
the month of December standing at 238. The
index numbers for each of the principal classes
of commodities likewise show increases, the
figure for the group of raw materials for the
month of December being 233, as compared
with 226 for November, for the group of producers goods increasing from 216 in November
to 229 in December, and for the group of consumers goods standing at 244 during December
as compared with 236 during November. The
increase in the index number for the group of
raw materials is due largely to the increases in
FEBRUARY, 1920.
prices of farm products and forest products,
the index number for the former group increasing 12 points to 288, and for the letter group
increasing 20 points, the December figure being
259. On the other hand, animal products show
a slight decrease and mineral products a slight
increase.
There has been an evident improvement in
general labor conditions during the month. In
the East and North employment is reported as
being full and labor is said to be in a more contented mood than for some time past. High
wages and generally satisfactory conditions of
employment are given as the reason for this
improvement. At some manufacturing centers efforts are made to increase wages on the
ground that higher living costs make them
necessary but this argument in behalf of higher
wages is apparently losing its force, employers
feeling that the strong demand for luxuries
indicates that there is a large surplus of buying
power in the hands of consumers. In the steel
districts the termination of the strike has resulted in a more stable condition of the labor
market, and the Pittsburgh district is now free
from strikes, excepting minor local disturbances. In all parts of the country a similar
condition is reported except that poor transportation conditions seem at some points to
make full operation difficult, hence subjecting
labor to some little irregularity of employment.
At some points in the South and Southwest
there are still complaints that labor is not
working full time but is using its high income
to purchase leisure at the expense of production. Nevertheless, the general labor situation even in these districts is reported as the
best for months past. There is some prospect
of agricultural labor shortage in connection
with the crop season now pending, but the
extent of this is still for the future to determine.
There are some strikes of street railway workers in various cities and more or less unrest
exists here and there, but from various quarters it is stated that a much better understanding of the industrial situation exists among
labor organizations and that adjustments of
FEBRUARY, 1920.
wages already made have tended to restore
good feeling.
The banks in the eastern centers particularly
are reporting a heavy demand for funds and
are using the Federal Reserve Banks freely.
In the interior of the country money has been
in strong demand for local uses. The action
of the Federal Reserve system in raising its
discount rate to 6 per cent on January 23 has
been favorably received by the financial community as a step toward the reduction of outstanding lines of credit. Ordinary commercial
rates are moving upward. While on some
days there have been very high rates for call
funds at the different centers, a reduction in
the volume of speculation has limited such
charges, and during much of the time call
funds have ranged around 6 per cent to 8 per
cent, although they have run as high as 25
per cent. The market for commercial paper
is dull, and commercial paper houses report
that they are discouraging their clients from
extensive borrowing. A lower level of prices
and very much less activity in stocks and
securities generally has been characteristic
during the latter part of the month of January.
Liberty bonds have declined slightly and
standard railroad and industrial bonds have
sold at low figures. Foreign exchange has
moved to lower levels, sterling bills reaching
the low level of $3.49, while practically all
continental exchanges have also gone to record
low figures. During the past month the money
situation has not shown the relaxation usual in
January. New financing has been greatly
impeded. There has been no change in the
foreign credit situation, but a Belgian loan of
$25,000,000 was successfully placed during the
middle of the month.
On the whole, the business outlook presents
much the same characteristics as during December, but with indications that a peak in
high prices and inflation has been appoached
if not reached. Financially the month has
been one of doubt and tension. Prospects of
business activity for the coming weeks appear
" favorable," but will require careful disposal
127
FEDERAL RESERVE BULLETIN.
of pending financial and exchange problems.
Foreign trade continues on its abnormally high
level, although a reduction during December
was noted. A much heavier reduction, should
exchange continue at its present unfavorable
figures, is predicted by many.
SPECIAL REPORTS.
REPORTED BY DISTRICT NO. 2.
Money rates.—The money market of the
past 30 days has been in a state of tension.
Rates for call money on the New York
Stock Exchange covered the wide range of
6 to 25 per cent, which was the highest since
the 30 per cent rate of November 12. The
high figures were reached at the end of the
year, when funds were being withdrawn from
New York by out-of-town banks for use at
home. Early in January rates w e r e easier, a
reflection of the creation of credit which was
incidental to the redemption of certificates of
indebtedness. Throughout the period renewals were made at unusually high figures.
From December 23 to January 5 the renewal
rate ranged from 10 to 15 per cent; on January
6 the rate was 8 per cent; since then it has
ranged between 6 and 8 per cent. Time money
has been scarce and rates hare been high.
Transactions have been few, even for the
shortest maturities. Rates are nominally 7J
per cent for loans on mixed collateral and 8 to
8J per cent on all industrial.
The market for commercial paper has continued dull as far as banks in the city of New
York are concerned. Few of them report any
purchases at all. It has been observed, however, that there has been an increased demand
for commercial paper from institutions within
a comparatively short distance of New York,
and dealers report their outside business to be
good in practically all sections of the country.
Very recently a heavy supply has manifested
itself, which appears to be considerably in excess of the power of the market to absorb.
Certain commercial paper houses report that
they are discouraging their clients from borrowing extensively. The rate remains on a
6 per cent basis, with a few sales of exceptionally desirable names at 5f per cent. In the
last 30 days the Federal Reserve Bank twice
raised its purchase rate on acceptances.
Present purchase rates are 5 per cent for indorsed 90-day bills, and 4 | per cent for 60day and 30-day bills. Stringency in money
128
FEDERAL RESERVE BULLETIN.
rates has kept the discount market limited, but
latterly dealers in acceptances have been taking
steps to widen the market for this kind of paper.
Stock market.—On the whole the stock
market in the last 30 days has been particularly sensitive to the stringency of money.
For a short time around the first of the year
prices rose and the volume of sales increased
accordingly, but for the most part the movement of prices has been downward, on a
market which has been in the hands of professional traders, with public speculative activity much diminished. No considerable reinvestment demand has been reported.
Liquidation, which had its beginning more
than two months ago, has continued with few
interruptions. It has been orderly and there
has been evidence of a substantial amount of
real capital to sustain the market against
radical declines. Railroad shares reached the
lowest point of December on the 12th, and
industrials on the 22d; but the rallies were
slight and generally lacking in vigor. By the
middle of January railroad stocks were again
down to a price level only about 1J points
above the lowest of December, while industrials were down 1^ points below the lowest
of the previous month.
Average daily stock sales for the week just
before Christmas were 817,400 shares; and this
compares with 1,197,700 a day for the week
ended January 2, and 826,700 for the week
ended January 9. Around the first of the
month an active day was a day of rising prices,
but more recently activity has been accompanied by weakness.
Bond market and new financing.—Heavy
liquidation in bonds, both corporation and
Government, continued somewhat past the
middle of December, attributable in part at
least to a desire on the part of holders to record
losses for the purposes of the income tax. The
general level of prices touched its lowest on
December 18, but in the succeeding three
weeks there was a substantial movement
upward.
Railroad bonds, in response to favorable
reports from Washington as to the time when
the roads will be returned to their owners, and
the conditions under which the return may be
accomplished, showed more strength than any
of the other major groups of bonds. They rose
about 2 f points from the middle of December
to the middle of January. Public utility issues
recovered about f, industrials 1^ points, and
foreign Government bonds as a group about 1^.
PBBBUABT, 1920.
Liberty bonds rose from I to If points up to
January 4, and as usual made up the larger part
of aggregate of sales. Transactions in corporation bonds remained heavy, averaging about
$5,500,000 per day over the turn of the year,
and then sharply diminished to $2,800,000
daily.
During the second week in January renewed
liquidation of moderate proportions made its
appearance. Liberty bonds lost somewhat
more than their previous gains and railroad
bonds also declined.
The curtailment of new issues of securities
observed in November continued, the result of
general financial conditions reflected in a
lessened public demand. The total in December was $223,000,000 as compared with $253,000,000 in November and $390,000,000 in
October. For the entire years 1919 and 1918
the monthly averages were $252,000,000 and
$112,000,000, respectively. The new issues in
December included a number of high-grade
municipal and Government bonds; preferred
stocks of industrial corporations of proved
standing, as well as of corporations which are
still to demonstrate their capacity to earn on
augmented capital; and corporation bonds
and notes of varying degrees of quality.
New incorporations in December amounted
in nominal capital to $1,077,500,000. This
compares with the monthly averages of
$1,056,000,000 for 1919 and $216,000,000 for
1918.
REPORTED BY DISTRICT NO. 3.
The production of bituminous coal is gradually recovering but is not yet up to normal.
The car situation at the mines has not been
relieved to any extent and is having its effect
in holding back production. Prices are trending upward. The possibility of scarcity of this
fuel has not yet been eliminated.
The anthracite industry closed the year with
an estimated commercial production of 68,700,000 tons, which is 10,000,000 tons short of
the previous year. This was largely occasioned
by the reduced demand for steam sizes, which
have not moved freely in spite of the suspension of mining in the bituminous fields during
the strike.
At the present time market demands are
readily absorbing the output of domestic sizes,
but the smaller steam sizes are in surplus supply, indicating a smaller demand from manufacturers. Prices, with the exception of the
steam sizes, have been steady. The tendency
FBBEUART, 1920.
FEDERAL RESERVE BULLETIN.
for the future will entirely depend on the condition of the labor situation, which is now being
investigated in the bituminous field by the
President's commission. In the anthracite
field the present wage agreement expires on
April 1, and a new wage agreement must then
be negotiated. Until that time prices are expected to remain the same. The general attitude of labor at present is toward higher wages.
The railroad car situation in the anthracite
field has not been disturbing and the general
supply of fuel is apparently ample for all
purposes at this time.
129
December showed the greatest single monthly
gain in history. This amounted to 1,137,036
tons. During the past seven months the total
unfilled orders of the leading interests were
swollen over 4,000,000 tons. Some of the independent mills are in a relatively similar position, and have enough business on their books
at present at the current rate of operations to
carry them well past mid-year.
A large buying movement in heavy melting
steel scrap is accepted as further indication that
heavier steel production is at hand. Insistent
demand continues for immediate or early shipment, particularly in bars, sheets, and plates,
REPORTED BY DISTRICT NO. 4.
strip steel, wire nails, and oil-country goods, and
Demand for iron and steel is keeping well the trade is being scoured for odd lots in stocks
ahead of supply since production generally has and offering premiums over the customary
continued unsatisfactory and subnormal. prices.
Early deliveries in many lines virtually are im- Sheet mills are particularly hard pressed with
possible to obtain. Buyers encountering this a tremendous demand arising from automobile
situation on their current requirements have makers.
Tinplate consumers are pressing the mills for
been rendered more anxious to fortify themselves on their future needs. The result has additional booking of orders, but the mills
been that strong efforts are being made on all report they are nearly sold up to July 1 and are
sides to get under cover forward needs running accepting very light additional business. The
to July 1 and beyond. Fearing a shortage of season for really heavy consumption of tinmaterial, many consumers have made prices a plate is several months away. Most favorable
secondary consideration; therefore, they have prices are ruling on export business, but it is
been actively bidding up the market upon reported very little of this trade is accepted.
themselves, and the situation wholly is in the Tinplate market remains quotable at March 21
sellers' hands. The steel corporation having prices.
reiterated its determination to maintain the
Pipe mills will not be able to overtake the
minimum price schedules suggested by the in- demand for oil-country goods even in the next
dustrial board March 21, now finds itself practi- six months. Severe weather has slowed down
cally alone in this position. Various inde- operations somewhat in the fields, but the
pendent producers are regulating the quotations demand is unabated for tubing and casing and
more nearly to conform with the present in- drive pipe. Pipe lines projected for early
tensity of demand and the material advances in spring in newly developed fields are further
operating costs. Some of them are observing a postponed.
conservative policy; others have raised their
Production has remained unsatisfactory and
schedules sharply. As a consequence the few of the mills have been able as yet to work
spread of going prices has been increased. back to maximum outputs. This has been due
Between the high and low figures it now to the demoralizing effects growing out of the
amounts to something like $17 per ton in steel steel and coal strikes, the lack of common labor,
plates, $13 in steel bars, $19 to $24 in sheets, etc. The official termination of the steel strike
$6 in structural shapes, and corresponding undoubtedly will help to bring about some imamounts in other finished products.
provement in this respect, in that working
While the steel corporation mills continue to forces will be augmented. However, during
adhere to minimum prices, these are being the strike many oi the men had become scatquoted only to regular customers. Further- tered through other lines of employment and
more, the obligations of the largest producer the taking up of their old jobs promises to be
have grown heavily so that deliveries on many
adual. General efficiency has suffered from
lines have become far deferred. Total unfilled
e recent interruptions of operations and the
orders of the steel corporation on December 31 manufacturers are finding it a real problem to
were the largest since October 31, 1918, and restore it.
130
Under these circumstances much tonnage
now being offered the mills is being declined
because of the doubt that it can be delivered
within the period desired. This has brought
up the big question as to how the railroads
are to obtain the large quantity of steel necessary to their speedy rehabilitation once they
are returned to private hands. There has been
some talk that special dispensation may have
to be arranged for their benefit, in order that
their requirements may be met. The railroads
have been heavy buyers of steel during the
several weeks which ha^e elapsed since the
presidential announcement that they were to
be returned to their former owners March 1.
Principally rails for 1920 delivery have been
taken, these orders amounting probably to
1,000,000 tons. Heavy purchases also have
t>een made for car repairs, in track fastenings,
etc. New ship work is coming along steadily
and large lots of plates and other forms have
been placed to cover additional construction
contracts. The mills have been obliged to
refuse considerable business of this character.
The pig-iron market has continued to rise
under a steady demand that has considerably
exceeded the available supply. Many of the
furnaces now are sold up entirely against their
first half production. Buyers are now coming
into the market for the last half of the year
and sales for that period which had been on
the basis of $38 to $42 at furnace for the base
grade have been increasing. Such little metal
as is obtainable for first half shipment is bringing from $40 to $42 for the base grade. Producers are less inclined to advance above these
levels, believing that the market has advanced
amply, if not too rapidly.
December production of pig iron as compiled
by the Iron Trade Review made a somewhat
better showing than was anticipated earlier in the
month, when the coal strike was affecting operations. The December tonnage produced was
2,629,851, against 2,404,369 in November and
1,864,424 in October. According to the record
of furnaces blowing on December 31, which was
262, pig-iron production virtually had been
restored to the basis which was prevailing at
the outbreak of the steel strike in September.
With December figures, it is shown that the
production of coke and anthracite pig iron in
the country in the calendar year of 1919 was
30,586,714" tons and including charcoal iron
about 30,925,000 tons. This compares with
39,054,644 tons in 1918, 38,621,216 tons in
1917, and 39,434,797 tons in 1916.
, 1920.
FEDERAL RESERVE BULLETIN.
REPORTED BY DISTRICT NO. 6.
The value of agricultural products raised in
Georgia during the year 1919, exclusive of any
livestock, is estimated to be $613,000,000, by
the Cooperative Crop Reporting Service, conducted jointly by the United States Bureau of
Crop Estimates and the Georgia State Department of Agriculture. This is more than
$15,000,000 increase over the previous year,
although it was the worst crop season in a
decade, and a record for boll weevil damage.
The year has been marked agriculturally by
the adding of tobacco and sugar cane to the list
of principal crops. The season of 1918 has
already seen peanuts and velvet beans become
principal crops, and with the continuous spread
of the boll weevil further diversification is expected. The early ravages of the insect the
past year caused heavy abandonment of cotton,
which was largely replaced by food and feed
crops.
Below are given figures, published by the
United States Department of Agriculture,
showing the number of bales of cotton ginned
in the States of the Sixth Federal Reserve District prior to January 1, 1920:
Alabama
Georgia
Mississippi
680,459
1, 637,738
823,082
Florida
Louisiana
Tennessee
17,515
291,222
239,876
Ginnings of sea-island cotton prior to January 1 were:
Florida
Georgia
2,886
650
Alabama reports indicate that very little
preparation has so far been made for the
approaching season's crops. The unfavorable
weather conditions have prevented .farm work
to any great extent.
The crop of sugar-cane sirup for the past
season is estimated at from 60 per cent to 70
per cent of normal.
The rice crop of Louisiana for 1919 is valued
at $53,000,000, being sold all over the country,
and shipped to Cuba, Porto Rico, and all
Latin American countries, in addition to large
European shipments. The sugar crop has
already been sold for high prices, which in a
measure has offset the short crop. The estimated value of the 1919 crop, including byproducts, is $50,000,000.
Tennessee reports show 1919 crops to be
below normal, except tobacco and hay. Tobacco production is estimated at 20 per cent
above that of 1918. Corn and cotton were
badly damaged by rain. The wheat acreage
FEBRUABY, 1920.
FEDERAL RESERVE BULLETIN.
is stated to be only 50 per cent of that sowed
in 1918, and oats, rye, and barley average
about 75 per cent of normal, both as to acreage
and condition of crop.
Reports from Florida indicate that frosts
about the first of January did considerable
damage to growing crops in the southern part
of the State, the section to which agriculture is
practically confined at this season of the year.
Everyone, however, saved their seed beds, and
will replant the stock that has been frosted.
A heavy average of potatoes is being planted.
There is a large acreage of cabbage which has
not been damaged by the frosts and is in splendid growing condition. A large quantity of
seed cane is being banked, indicating a large
acreage of this product next season.
An increase of several thousand acres in
plantings of tomatoes this season is indicated.
The recent cold weather damaged the early
plantings to about 10 per cent to 20 per cent;
these seed beds, however, were also saved, and
this acreage will be replanted.
REPORTED BY DISTRICT NO. 7.
Business is in a peculiar pocket. On one
side there are forays against high prices,
society women engineering film propaganda
and quasi-boycotts against this or that commodity at the prevailing prices, or else pledging
themselves to refrain from buying until concessions are made. On the other side there is
the obstinate fact that demand for commodities outruns any possibility of providing a
supply, that production is low in volume because labor is inefficient and because raw materials are available in quantities much below
necessary requirements. These factors, combined with others of vital moment, such as car
shortage, motive-power famine, inadequate
transportation facilities, and strike rumors,
constitute a total of risk element against which
the average man of business dreads to pit his
capital. Crowning all the rest of the difficulties that are piled up around business tranquillity stands the foreign exchange situation,
most obstinate and unfavorable in its bearings
on American hopes.
"The wish is father to the thought/' apparently, when it is asserted
that "prices are on
the point of breaking.7' Occasionally, it is
true, there appear advertisements announcing
<ubig cuts" in prices, and these are heralded as
the beginning of the era of forced liquidation
and of declines in the cost of living. Investigation fails to show that these "leaders"
represent the facts of the general market. On
131
the contrary, all the reports sent in, responsive
to questionnaires for purposes of this report,
bear out the main point in Gov. Hardmg's
Boston address, namely, that foreign competition against domestic demands for a terribly curtailed supply of goods is responsible
alike for the obstinate unfavorableness of the
foreign exchanges to our sales of goods abroad
and for the persistent maintenance of the
"high cost of living."
Advices from all parts of the district indicate
that the general volume of business in the Middle West continues at a high level and that
building operations and other activities will be
sufficient to sustain the movement, for the
immediate future at least. Farming communities continue to enjoy the prosperity
which has resulted from several years of very
high prices, and so long as the industrial centers
of the agricultural districts continue to be
abundantly supplied with purchasing power,
there is little indication of any marked decline
in domestic trade.
There is running through the banking mind
in the Middle West, however, the thought that
this country can not long continue the extraordinary volume of foreign exports without
some improvement in the foreign exchange
situation. A drastic drop in international
business, if it should come, would tend to alter
the exchange situation. Such decline in exports may be offset to some extent by the
tremendous accumulative buying power of our
own country, yet this is an unknown factor in
the present business situation.
REPORTED BY DISTRICT NO. 8.
Wholesalers in practically all lines appear to
be very prosperous. Many report that their
business was never better. The buying power
of the merchants is very strong and collections
are good. Increases in business as high as
350 per cent over December, 1918, are reported.
The dry goods trade is especially active.
Wholesale dry goods dealers report increases
ranging from 47 to 100 per cent and even
over 300 per cent in December as compared
to the corresponding month in 1918. The
demand is far above normal and there is
still difficulty in securing goods promptly from
factories. As has been the case for several
months, orders on hand for future delivery are
exceptionally large.
Wholesale shoe dealers say business is improving, showing increases as high as 35. per
cent over November and 50 per cent over December, 1918. Orders for future delivery are
larger than usual.
132
FEDEBAL BESERVE BULLETIN.
In the wholesale drug line conditions have
not materially changed since the last report.
Prices are generally stationary and collections
are good. One concern states that it has about
10 per cent less owing to it on account than it
had a year ago, although its annual business increased 20 per cent over that for the year 1918.
While some wholesale grocers report decreases in business as compared to December,
1918, most concerns report increases ranging
from 18 per cent to 25 per cent for the same
period. Orders on hand for future delivery
are small, in some cases only 50 per cent of
those held last year.
The wholesale hardware business is steady.
December shows slight increases over the corresponding month in 1918. Some concerns
have large orders for future delivery, while
others, those dealing in mining tools for
instance, have none.
Wholesale hat houses report increases as
high as 82 per cent over December, 1918.
Their orders for future delivery are exceptionally large. There is a scarcity of skilled
labor and a difficulty in obtaining goods from
the manufacturers.
REPORTED BY DISTRICT NO. 12.
Heavy snows and severe cold weather in the
Pacific Northwest and the interior sections of
this district have brought live stock off the
ranges and forced earlier winter feeding than
usual, requiring heavy purchases of feed, at
exceptionally high prices. It is anticipated,
however, that the snowfall will result in satisfactory range conditions in the late spring and
early summer. Winter wheat was practically
undamaged by the cold and the heavy snows will
greatly increase the moisture content of the soil,
thereby improving the prospects for large per
acre yields during 1920. Fruit trees in Oregon,
particularly peach and pear trees, have suffered
from freezing. The exact amount of damage,
however, will not be ascertainable for some time.
In California barley is sprouting very slowly
and lack of rain is causing some anxiety concerning prospects for 1920 crops.
The major portion of the Washington commercial apple crop of 19,320,000 boxes, which
compares with a 1918 crop of 12,888,000 boxes,
is out of the hands of the growers, having been
marketed at record prices. The dealers are
now suffering a loss reported at approximately
$750 per car through the recent drop in prices
and the heavy losses due to freezing of fruit in
common storage and in transit.
FEBRUARY, 1920.
EARNINGS AND EXPENSES OF THE FEDERAL RESERVE BANKS FOR 1919.
Total earnings of the Federal Reserve Banks
for the calendar year 1919 were $102,380,583,
compared with $6^,584,417 for the calendar
year 1918, while total current expenses were
$20,341,798, compared with $12,137,438 for
the earlier year. Current expenses for the
year under review include, besides $15,439,194
of expense of operation proper, $3,016,823, the
cost, including expressage, insurance, and other
expenses incident to the issue and retirement of
Federal Reserve notes; $872,326, taxes on Federal Reserve bank note circulation; $938,791,
the cost of furniture and equipment purchased
during the year, and $74,664, the cost of repairs
and alterations of bank premises.
As a result of increased borrowings by member banks and the higher discount rates
adopted, the earnings of all the Federal Reserve
Banks show considerable higher totals for the
last three months than for the earlier months
of the year.
Total current expenses shown above are exclusive of the expenses of the fiscal agency departments. These expense are treated separately, being reimbursable by the Government.
During the past calendar year the Federal
Reserve Banks acting as fiscal agents, largely
in connection with the Victory loan and the
.several certificates issues, expended a total of
$16,626,016. There was also due to the banks
from the Treasury at the beginning of the year
a total of $9,573,832, expended by the banks
during the year 1918. Reimbursements received during the year from the Government
amounted to $22,612,681, leaving thus a reimbursable balance at the end of 1919 of
$3,587,167.
Current net earnings of the banks—i. e.7 the
excess of earnings over current expenses—
totaled $82,038,785, compared with $55,446,979 for 1918. Calculated on an average aggregate paid-in capital for the year of $83,513,000 the net earnings for 1919 constitute
98.2 per cent, as compared with 72.6 per cent
on the average paid-in capital in 1918.
To the current net earnings above shown
should be added $219,575, the amount by which
the reserve set aside in previous years to take
care of depreciation of United States bonds
owned has been reduced, and $40,857 representing largely amounts carried directly to profit
and loss during the past year. This gives total
gross profits of $82,299,217. Deductions from
FEBRUARY, 1920.
this total, $3,931,713, comprise the following
items: Depreciation allowances of $2,649,819
on bank premises (especially large in New
York City and Chicago); additional reserve
against depreciation of United States bonds,
$34,156; a special reserve of $525,741 set aside
by the New York bank to cover losses and
take care of future contingencies; an amount
of $493,928, assessed against the banks for the
support of the Federal Reserve Board during
the first six months of 1920, and miscellaneous
deductions of $228,069. This leaves net earnings available for dividends, surplus, and franchise taxes of $78,367,504. Dividends at the
rate of 6 per cent paid during the year by all
the Federal Reserve Banks amounted to
$5,011,832.
Under section 7 of the original act the banks
had to carry to surplus one-half of their net
earnings up to 40 per cent of their paid-in capital and had to pay the other half to the Government as a franchise tax. In accordance
with this provision the banks at the close of
1918 carried to surplus $21,605,901, and under
instructions from the Reserve Board, concurred
in by the Treasury, set aside the balance of their
net earnings, $26,728,440, as a special reserve
for payment of the franchise tax. On March 3,
1919, an amendment to section 7 was enacted
whereby all net earnings, after deduction of
6 per cent dividends, were to be paid into a
surplus fund until this fund should have reached
100 per cent of the total subscribed capital, and
that thereafter 10 per cent of such net earnings
were to be carried to surplus, while the remainder was to be paid as a franchise tax to the
Government. This amendment was made applicable to the net earnings for the calendar
year 1918, and accordingly the Federal Reserve
Banks transferred to surplus account the
amount of $26,728,440 reserved at the close of
the year for franchise tax.
At the end of 1919 net earnings, after payment of dividends, amounted to $?3,355,672,
and of this amount $70,651,778 was carried to
surplus, while the balance was paid to the Government as franchise tax by the New York
bank, whose surplus is in excess of 100 per cent
of its subscribed capital. For the other banks
the ratios of surplus to subscribed capital stand
as follows:
133
FEDERAL, RESERVE BULLETIN.
Per cent.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
58.8 St. Louis
100.7 Minneapolis
55.8 Kansas City
47.7 Dallas
66.3 San Francisco
68.5
System
57.9
Per cent.
45.8
58.0
76.1
44.3
65. 3
68. 7
Of the total earnings of the banks, about 78.9
per cent, as against 71.5 per cent in 1918, came
from discounts, largely war paper; bills purchased in open market contributed about 13.7
per cent of the total earnings, as against 17.7
per cent in 1918; United States securities,
chiefly Treasury certificates, 5.6 per cent, as
against 5.7 per cent the year before; transfer
operations yielded about 0.8 per cent of the
annual earnings, compared with 1.5 per cent in
1918, while the balance of the earnings represent penalties, including interest on deficient
reserves, collection charges, profits on sales of
foreign coin, and sundry smaller profits.
Of the total expenses of operation of the
banks proper, exclusive of their fiscal agency
departments, $7,103,547, or about 46 per cent,
as against 42 per cent the year before, went as
compensation to the clerical staff, and
$1,418,144, or about 9 per cent, as against 11.5
per cent in 1918, as salaries to bank officers.
Compensation of special officers and watchmen,
also of extra help, overtime pay, and supper
money account for $1,375,311, or about 9 per
cent of the total expenses of operation;
$902,547, or 6 per cent, as against 10 per cent
the year before, went for postage and expressage, and $829,178, or about 5.5 per cent,
for printing and stationery. Contributions of
the banks for the support of the Federal Reserve Board totaled $594,818, as against
$382,641 the year before,7 and constitute about
4 per cent of the banks total operating expenses, compared with 4.5 per cent for 1918.
Rent paid by the banksf totaled $613,988,
compared with $369,122 in 1918, the New York
and Chicago banks reporting the largest increases under this head. All the banks have,
invested in bank premises, but most of them
for the present find it necessary to transact the
bulk of their business in rented quarters. Total
book value of investments in bank premises at
the close of the year, after allowing $2,649,819
for depreciation, stood at $10,156,318, compared
with $8,081,841 at the beginning of the year.
Earnings and expenses of each Federal Reserve Bank for the calendar year 1919.
CO
EARNINGS.
Boston.
New York. Philadelphia.
Cleveland.
Richmond.
Atlanta.
Discounted bills
$6,003,252 $29,935,911 $7,987,864 $5,341,785 $4,099,953 $3,735,033
367,338
351,418
67,019 1,882,985
Purchased bills
1,077,691 3,326,839
185,293
1,888,497
495,768
450,308
United States securities
369,457
85
Municipal warrants
8,356
Transfers—net earnings
45,607
Deficient reserve penalties (including
66,442
125,192
68,313
interest)
25,673
27,836
36,405
Profits realized on United States secur5
2,350
ities
13,468
33,556
7,913
11,352
144,760
Sundry profits
19,347
Total earnings.
7,497,583
35,332,412
8,609,880
7,800,829
4,775,324
Chicago.
St. Louis.
Minneapolis.
Kansas
City.
Dallas.
San Francisco.
$8,915,827 $2,918,462 $1,829,461 $3,888,839 $2,443,806 $3,667,951
2,141,789
882,564
564,495
340,875
113,397 2,870,368
736,241
213,501
405,400
238,385
320,412
229,080
143,495
10,570
44,569
52,373
30,157
18,166
3,672
4,416,001 12,012,078 3,884,478
3,007,041
51,461
Total.
$80,768,144
13,986,778
5,761,300
85
198,749
193,661
178,410
106,705
81,984
65,970
727,844
20,914
323
140
2,355
303,768
4,961,482 3,062,251
7,021,224
102,380,583
CURRENT EXPENSES.
Expense of operation:
Assessments, account expenses
Federal Reserve Board
Federal advisory council (fees and
traveling expenses)
Governors' conferences (including
traveling expenses)
Federal Reserve agents' conferences (including traveling expenses)
SalariesBank officers
Clerical staff
Special officers and watchmen.
Allother
Directors' fees
Per diem allowance
Traveling expenses
Officers' and clerks' traveling expenses
Legal fees
Rent
Taxes and fire insurance
Telephone
Telegraph
Postage
Expressage
Insurance and premiums on fidelity bonds
Light, heat, and power
Printing and stationery
'
Repairs and alterations
Cost of currency shipments to and
from member and nonmember
banks
Allother
$45,619
$181,875
$49,059
$58,676
$29,535
$22,391
$80,170
$24,981
$20,209
$28,151
$20,362
$33,790
$594,818
500
1,150
381
1,035
736
470
816
1,150
1,274
300
992
2,594
11,398
244
316
210
499
254
575
523
553
83
498
788
2,498
7,041
255
43
133
84
229
341
361
109
1,105
2,908
96,929
577,104
44,688
59,228
4,059
650
1,278
99,815
494,639
17,444
71,687
2,600
930
1,989
74,796
326,746
7,497
16,283
3,400
820
1,999
116,952
289,855
10,037
12,934
3,013
4,085
3,025
158,083
881,142
64,752
80,785
4,915
590
1,249
95,040
400,860
13,408
20,289
5,970
2,290
3,326
61,014
91,604
208,171
453,258
8,726
14,423
3,530
11,698
3,870
6,735
980 !
6,438
1,965
5,102
87,212
390,993
6,363
11,883
2,220
740
1,487
136,807
491,627
13,757
19,005
5,879
1,344
1,418,144
7,103,547
274,581
1,100,730
70,556
20,007
27,466
16,304
3,000
53,525
533
6,445
15,084
70,916
2,023
570
7,941
11;452
2,447
10,032
48,262
2,809
9,113
4,495
14,018
8,268
2,988
24,326
49,906
8,831
28,147
5,500
97,477
253
9,793
24,^16
98,723
6,393
22,933
61
36,020
701
3,548
15,609
54,853
4,586
5,531
3,380
14,295
851
2,223
2,752
34,781
969
13,959
1,825
31,820
646
3,734
12,233
78,769
2,468
14,578
2,400
5,526
1,746
3,189
21,772
39,883
25,556
16,729
3,199
3,256
5,672
4,912
27,929
47,193
4,538
179,127
41,438
613,988
49,451
98,047
202,724
778,759
123,788
8,692
20,806
4,546
49,782
11,508
13,308
3,365
41,009
13,194
20,636
5,852
88,080
18,620
306,595
73,960
829,178
297,930
27,075
40,881
25,519
41,348
46,474
46,197
546,266
666,747
775,542 1,047,693
15,439,194
109
139
105,097
606,345
12,278
12,111
3,550
1,140
•2,661
294,795
1,982,807
61,208
781,297
24,345
8,708
3,817
58,367
3,554
29,015
11,250
290,243
11,855
7,958
78,621
3,416
32,490
33,235
116,072
54,395
5,421
1,941
1,500
15,775
14,423
7,578
60,780
7,804
19,104
16,771
41,478
16,722
98,817
2,859
236,653
130,718
45,848
17,616
78,477
31,581
33,088
3,937
46,952
9,560
9,718
5,093
39,083
11,393
8,881
3,889
46,294
2,619
8,736
8,087
101,466
40,349
18,961
1,945
34,676
5,314
78,824
82,115
103,905
142,251
35,354
102,559
33,790
31,552
41,504
21,008
31,982
44,003
66,144
84,905
47,789
18,673
4,613,220 1,260,243 1,076,278
Total expense of operation
1,220,964
Cost of Federal Reserve currency (including expressage, insurance, etc.)..
285,917
Miscellaneous charges, account note
31,774
issues
3,'385
682,110
723,083
1,853,298
833,765
434,378
918,620
642,430
209,419
168,867
119,347
148,735
400,418
188,617
56,273
131,339
85,719
187,486
2,624,567
105,167
45,411
16,981
28,582
11,536
62,558
20,313
17,002
16,493
8,028
28,411
392,256
Taxes on Federal Reserve bank note
circulation
Furniture and equipment
Bank premises
Total current expenses
Current net earnings, year 1919
Per cent of average paid-in capital
89,422
43,748
169,514
204,014
98,132
100,868
61 112
80,491
53,414
32,468
49,420
41,561
46,844
458
24,912
23,926
58,300
73,798
133,970
98,080
42,829
70,718
65,327
54,290
35,400
119,671
13,094
872,326
938,791
74,664
1,671,825
5,734,3,45
1,775,185
1,396,031
911,927
972,217
2,548,324
1,174,793
556,491
1,186,069
982,836
1,431,755
20,341,798
5,825,758
84.3
29,598,067
137.5
6,834,695
89.1
6,404,798
69.0
3,863,397
91.7
3,443,784
104.8
9,463,754
81.0
2,709,685
69.3
2,450,550
81.6
3,775,413
99.0
2,079,415
63.5
5,589,469
113.3
82,038,785
98.2
PROFIT AND LOSS ACCOUNT OF EACH FEDERAL RESERVE BANK FOR THE CALENDAR YEAR 1919.
Boston.
Earnings
Current expenses
Current net earnings for year
Credits to current net earnings on
account of—
Amounts previously reserved for
depreciation on U.S.bonds
All other.
Total
Deductions from current net earnings
on account of—
Bank premises .
Reserve for depreciation United
States bonds...
Assessment account expenses F. R.
Board, Jan.-June, 1920
Special reserves
All other. .
New York.
Philadelphia.
Cleveland.
Richmond.
Atlanta.
Minneapolis.
St. Louis.
Chicago.
Kansas
City.
Dallas.
San Francisco.
Total.
17,497,583 $35,332,412 $8,609,880 $7,800,829 $4,775,324 $4,416,001 $12,012,078 $3,884,478 $3,007,041 $4,961,482 $3,062,251 $7,021,224 $102,380,583
982,836 1,431,755 20,341,798
5,734,345 1,775,185 1,396,031
911,927
556,491 1,186,069
1,671,825
972,217 2,548,324 1,174,793
5,825,758 29,598,067 6,834,695 6,404,798 3,863,397 3,443,784 9,463,754 2,709,685 2,450,550 3,775,413 2,079,415 5,589,469 82,038,785
5,825,758
31,096
3,697
58,606
940
13,096
3,584
29,629,163
6,838,392
6,404,798 3,922,943
3,460,464
9,463,754
20,000
51,478
820,000
25,531
20,302
66,764
900,032
254,684
29,112
5,044
41,828
46,555
27
967
219,575
40,857
2,450,550
3,923,362 2,079,885 5,590,463
82,299,217
335,000
100.000
168,625
2,649,819
19,520
16,607
16,167
33,306
21,854
1,172
493,928
525,741
228,069
116,607
38,021
203,103
3,931,713
!"".
1
2,709,685
!
147,846
103
470
34,156
9,711
168,682
525,741
75,089
108,283
4,730
146
6,287
786
11
48,377
1,669,544
179,223
311,013
45,677
78,067
887,550
354,531
Net earnings available for dividends,
surplus, and franchise tax, Dec. 31,
5,777,381
1919
27,959,619
6,659,169
6,093,785
3,877,266
3,382,397
8,576,204
2,355,154
2,333,943 3,923,362
2,041,864
5,387,360
78,367,504
1,291,047
23,964,678
462,380
6,196,789
556,785
5,537,000
252,872
3,624,394
197,397
3,185,000
700,807
7,875,397
234,660
2,120,494
180,186
2,153,757
196,335
1,845,529
296,161
5,091,199
5,011,832
70,651,778
Total deductions
Dividends paid..
Transferred to surplus fund
Franchise tax paid United States
Govern ment
38,666
414,447
5,362,934
228,755
3,694,607
2,703,894
2,703,894
FISCAL AGENCY DEPARTMENT EXPENSES OF EACH FEDERAL RESERVE BANK, AMOUNTS REIMBURSED BY THE TREASURY DEPARTMENT,
AND BALANCES REIMBURSABLE AT THE END OF THE CALENDAR YEAR 1919.
Total disbursements during 1919
Amounts reimbursable Jan. 1,1919
Boston.
New York. PhiladelCleveland.
phia.
Richmond.
Atlanta.
Chicago.
$1,166,763
558,932
$4,963,642 $1,005,050 $1,494,163
758,096
3,049,530
766,785
$577,099
226,076
$712,656
458,650
$2,711,206
1,261,885
Total
1,725,695
Reimbursements received during 1919 . 1,539,918
Balance reimbursable Jan. 1,1920.
185,777
8,013,172
7,035,337
1,763,146
1,645,329
2,260,948
1,930,562
803,175
550,352
1,171,306
1,049,519
977,835
117,817
330,386
252,823
121,787
St. Louis. Minneapolis.
San Francisco.
Kansas
City.
Dallas.
$553,058 $1,161,982
508,669
933,435
$16,626,016
9,573,832
Total.
$921,819
450,342
$606,534
150,212
$752,044
451,220
3,973,091 1,372,161
3,410,610 1,265,704
756,746
627,461
1,203,264
796,088
1,061,727
848,133
2,095,417
1,883,668
26,199,848
22,612,681
106,457
129,285
407,176
213,594
211,749
3,587,167
532,481
Earnings and current expenses of each Federal Reserve Bank, by months, for the calendar year 1919.
EARNINGS.
Boston.
January
February..
March
April
May
June
July
August
September.
October
November.
December.,
Total
New York.
phia.
$525,055 $2,806,299 $658,171
506,592 2,576,420
616,446
567,475 2,843,565
690,973
587,362 2,648,937
674,815
619,839 2,908,549
706,261
604,188 2,586,788
702,695
631,738 3,064,518
702,684
583,143 2,896,848
718,959
629,460 2,623,409 ! 707,226
655,413 3,155,511
756,681
745,500 3,400,023
793,629
841,818 3,821,545
881,340
7,497,583 35,332,412 I 8,1
Cleveland.
mond.
Atlanta.
$579,072
542,338
597,250
570,417
590,570
576,734
619,051
646,465
621,130
700,893
845,449
911,460
$385,481
354,977
394,719
396,212
398,218
377,693
380,629
366,955
383,302
416,300
420,958
$349,756
288,668
324,003
318,467
338,776
334,959
344,191
352,294
383,043
446,108
451,996
483,740
7, 800,829
4,775,324
4,416,001
Dallas.
San Francisco.
$265,073
227,487
246,157
232,809
234,943
233,634
255,115
242,681
256,967
295,663
259,549
312,173
$509,295
466,167
577,361
508,416
566,630
507,603
575,207
588,572
607,390
663,666
707,021
743,896
$7,770,131
7,033,107
8,072,719
7,794,264
8,226,919
7,793,244
8,511,773
8,263,677
8,164,744
9,294,647
10,055,821
11,399,537
12,012,078 ! 3,884,478 3,007,041 4,961,482 3,062,251 7,021,224
102,380,583
Chicago.
$823,055
693,832
865,435
853,765
934,037
958,234
1,022,300
988,782
931,560
1,076,905
1,290,014
1,574,159
A. I Mi:inneapo-l Kansas
St. Louis.
lis.
I City.
$282,051
226,019
327,022
330,224
288,564
285,962
284,508
311,286
343,458
368,794
385,860
450,730
$204,303
193,851
224,985
259,045
240,428
229,249
239,952
216,553
241,666
300,369
299,549
357,091
$382,520
340,310
413,774
413,795
400,104
395,505
391,880
351,139
436,133
458,344
456,273
521,705
Total.
CURRENT EXPENSES.
January...
February..
March
April
May
June
July
August
September.
October
November.
December.
$105,759
92,402
177,414
125,801
97,283
152,789
105,782
139,303
124,664
106,449
106,062
338,117
Total
1,671,825
$79,011
94,606
117,851
91,928
84,591
348,017
121,370
108,115
102,211
101,998
102,584
422,911
$50,214
70,201
77,650
67,434
63,803
71,964
47,665
48,388
63,915
63,598
59,945
227,150
$57,207
75,445
74,446
76,463
69,099
64,140
56,868
79,218
61,986
67,561
78,867
210,917
$136,033
135,033
181,500
206,763
237,633
229,903
165,619
207,021
181,992
284,410
171,480
410,937
5,734,345 1,775,185 1,396,031 ! 911,927
972,217
2,548,324
$345,502
306,935
411,008
354,288
531,778
654,433
388,537
374,970
371,320
361,698
536,922
1,096,954
$93,863
115,527
119,519
83,108
90,258
114,565
98,212
84,975
93,261
93,366
320,733
150,356
73,337
73,731
84,297
76,931
82,425
254,759
$33,423
35,580
32,358
32,402
33,708
90,543
37,577
39,690
41,007
40,590
44,315
95,298
$87, 111
63,002
116,995
102,430
74,957
83,505
81,115
82,284
81,547
90,376
99,277
223,470
1,174,793
556,491
1,186,069
$73,798
63,199
97,658
75,704
$62,652
46,422
80,096
54,775
65,456
75,598
63,574
98,181
76,558
81,354
87,848
190,322
$77,595
75,109
89,342
84,950
78,494
221,873
78,314
72,185
82,513
85,638
104,499
381,243
$1,202,168
1,173,461
1,575,837
1,356,038
1,495,658
2,257,686
1,317,970
1,411,730
1,356,985
1,453,864
1,567,590
4,172,811
982,836 1,431,755
20,341,798
FEDEBAL, EESERVE BULLETIN.
FEBRUABY, 1920.
Foreign Financing.
Following is copy of a letter which Secretary
Glass has addressed to Homer L. Ferguson,
president of the Chamber of Commerce of the
United States of America, on the subject of
foreign financing:
JANUARY 28,
1920.
SIR: I have the honor to acknowledge receipt of the
letter of January 22, 1920, signed by yourself and Messrs.
A. C. Bedford, John II. Fahey, and Harry A. Wheeler, to
whom, as a committee designated by the Chamber of
Commerce of the United States, was referred a communication transmitting a memorandum signed by 44 prominent American citizens addressed to the United States
Gcpernment, the Reparations Commission, and the
Chamber of Commerce of the United States, recommending that the Chamber of Commerce of the United States
designate representatives of commerce and finance to
meet with those of other countries for the purpose of examining the situation as set out in the communication,
and recommending such action as may be advisable.
In compliance with your request for an expression of
opinion from the Treasury in respect to the observations
and recommendations contained in the memorial, I may
first state that the views and policy of the Treasury in
respect to the international financial situation are set forth
in the inclosed extracts from my annual report (pp. 11
to 14, inclusive).
With much that is contained in the memorial the
Treasury is in hearty accord. Concerning the need of
increased production and decreased consumption, the need
of balancing governmental budgets and taking effective
measures to deflate currency and credit, concerning the
need of prompt and proper determinations by the Reparations Commission which will make possible the resumption of industrial life in Germany and the restoration of
trade with Germany, there can be no doubt.
The people of the United States are being called upon
by taxes and otherwise not only to meet the Government's
expenditures but to reduce the war debt. So far as the
countries of Europe are concerned, the adoption of similar
policies is a matter for the Governments of those countries
and for the Reparations Commission.
In an effort to alleviate the situation the United States
Government has done all that was considered advisable
and practicable. Since the armistice, we have extended
to foreign Governments the following financial assistance:
Direct advances
$2, 380, 891,179. 65
Funds made available to those Governments through the purchase of
their currencies to cover our expenditures in Europe
736,481, 586. 76
Army and other governmental supplies
sold on credit (approximately)
685,000,000. 00
Relief (approximately)
100,000,000. 00
Unpaid accrued interest up to Jan. 1,
1920, on Allied Government obligations
324, 211, 922. 00
Total
4,226, 584,688. 41
137
The Treasury is opposed to further governmental aid
beyond that outlined in my annual report and in my recent
communication to the Ways and Means Committee of
Congress with respect to the extension of interest on the
Allied Government obligations held by the Government
of the United States and to the supplying of relief to certain portions of Europe. The Governments of the world
must now get out of banking and trade. Loans from Government to Government not only involve additional taxes
or borrowings by the lending Government with the inflation attendant thereon, but also a continuance by the
borrowing Government of control over private activities,
which only postpones sound solutions of the problems.
The Treasury is opposed to governmental control over
foreign trade and finance and even more opposed to private
control. It is convinced that the credits required for the
economic restoration and revival of trade must be supplied
through private channels; that as a necessary contribution
to that end the Governments of the world must assist in
the restoration of confidence, stability, and freedom of
commerce by the adoption of sound fiscal policies; and
that the Reparations Commission must adopt promptly a
just and constructive policy.
The memorial which was simultaneously circulated in
Europe differs in its scope and character from the one presented in the United States. The European memorial contains some passages omitted in the American memorial
which apparently advocate further governmental financial
assistance, and also requests the respective Governments
to designate representatives to attend the proposed conference, which would give it an official character.
The Treasury has not looked with favor upon certain
' features of the memorial nor upon the proposed conference,
being apprehensive lest the memorial and such a conference should serve to cause confusion and revive hopes
(which, I am certain, are doomed to disappointment) that
the American people through their Government will be
called upon to assume the burdens of Europe by United
States Government loans—such matters as the suggestion
of further governmental loans by the United States, the
cancellation of some or all of the obligations of European
Governments held by the United States Government (as
contemplated by a passage contained in the European
memorial but omitted from the American memorial), and
the deferring of obligations of foreign Governments held
by the United States to liens created in favor of loans hereafter made for reconstruction purposes, are clearly not appropriate for consideration in such a conference as is
contemplated by the memorial.
The existing world-wide inflation of currency, credit, and
prices is a consequence of the fact that for a period of four
or five years the peoples of this earth have been consuming
and destroying more than they have produced and saved,
and against the wealth so destroyed the warring nations
have been issuing currency and evidence of indebtedness.
The consequence of the world's greatest war is profound
and inescapable. It has affected all the nations of the
civilized world, as well those who participated actively
138
FEDERAL RESERVE BULLETIN.
in the war as those who did not. The inflation exists in
the neutral countries of Europe and in the Orient. It
exists where there was no war debt, where the war debt
was badly handled, and to some degree where the war
debt was well handled.
The problems to the cure of which the distinguished
gentlemen are directing their attention, have been the
subject in one form or another, of daily study of the
Treasury Department since the outbreak of the war, and
especially since the signing of the armistice. These
problems have at all times been complex and difficult,
and simple solutions have never been possible, because
they involve some factors which are not susceptible of
solution by any comprehensive plan. The process of
healing the wounds inflicted by the war must necessarily
be slow and painful, involving as it does not only the
physical restoration of industry and agriculture, but as
well the restoration to habits of industry of masses of
men accustomed by the war to unsettlement. We must
necessarily, and to a great extent, depend upon and
encourage the independent activity and resourcefulness
of each person affected to repair his own fortunes, with
the assistance of his business connections in other
countries, and also upon each individual to return to a
normal life of industry and economy.
From the moment of the cessation of hostilities the
Treasury of the United States has pursued a policy of
looking toward the restoration as promptly as possible
of normal economic conditions, the removal of governmental controls and interferences and the restoration
of individual initiative and free competition in business.
It has insisted upon strict economy in governmental
expenditure and upon the maintenance of taxes at a level
which, with the salvage of war materials and supplies,
etc., will insure the prompt retirement of the floating
debt of the United States and the establishment of a fund
adequate for the retirement of the funded debt in the
course of a generation. The Treasury long since, with
the cooperation of the Federal Reserve Board, removed
the embargo on the export of gold, thus enabling American
citizens and, indeed, the nations of the world, to the
extent that they find credit here, to finance their purchases
throughout the world in cash.
Rightly or wrongly, a different policy has been pursued
in Europe. European Governments have maintained,
since the cessation of hostilities, embargoes upon the
export of gold. The rectification of the exchanges now
adverse to Europe lies primarily in the hands of European
Governments. The normal method of meeting an adverse
international balance is to ship gold. The refusal to ship
gold prevents the rectification of an adverse exchange.
The need of gold embargoes lies in the expanded currency
and credit structure of Europe. Relief would be found
in disarmament, resumption of industrial life and activity
and the imposition of adequate taxes and the issue of
adequate domestic loans.
The American people should not, in my opinion, be
called upon to finance, and would not in my opinion
FEBRUARY, 1920.
respond to a demand that they finance, the requirements
of Europe in so far as they result from the failure to take
these necessary steps for the rehabilitation of credit.
Such things as international bond issues, international
guaranties and international measures for the stabilization
of exchange are utterly impracticable so long as there
exist inequalities of taxation and domestic financial
policies in the various countries involved; and when
these inequalities no longer exist such devices will be
unnecessary.
It is unthinkable that the people of a country which
has been called upon to submit to so drastic a program
of taxation as that adopted by the United States, which
called for financing from current taxes a full one-third of
the war expenditures, including loans to the Allies,
should undertake to remedy the inequalities of exchange
resulting from a less drastic policy of domestic taxation
adopted by the other Governments of the world. The
remedy for the situation is to be found not in the manufacture of bank credit in the United States for the movement of exports, a process which has already proceeded
too far, but in the movement of goods, of investment securities and, in default of goods or securities, then of gold
into this country from Europe; and in order that such
securities may be absorbed by investors our people must
consume less and save.
The United States could not, if it would, assume the
burdens of all the earth. It can not undertake to finance
the requirements of Europe because it can not shape the
fiscal policies of the Governments of Europe. The Government of the United States can not tax the American
people to meet the deficiencies arising from the failure of
the Governments of Europe to balance their budgets, nor
can the Government of the United States tax the American people to subsidize the business of our exporters.
It can not do so by direct measures of taxation nor can it
look ^\ith composure upon the manufacture of bank
credit to finance our exports when the requirements of
Europe are for working capital rather than for bank credit.
Lamentable as would be the effects upon our industrial
life and upon Europe itself of the continued maintenance
of an exchange barrier against the importation into Europe
of commodities from the United States, this country can
not continue to extend credits on a sufficient scale to cover
our present swollen trade balance against Europe, while
paying cash (gold and silver) to the countries of Central and
South America and the Far East with which it has an
adverse balance on its own and international account.
The consequence of the maintenance by Europe of this
barrier will be to force the United States to do business
with those countries with which it is able to do business
on a cash basis. The only other policy which the United
States could adopt would be the policy of reestablishing
embargoes on gold and silver and of inflating its own
currency to the same extent that the currencies of Europe
are inflated with a view to lowering its exchange to a parity
with theirs. This would involve taxing the whole people
for the benefit of our exporters and the benefit of Europe
FEBRUARY, 1920.
FEDERAL RESERVE BULLETIN.
and submitting to have imposed on the United States
domestic financial policies adopted by Europe but quite
contrary to those heretofore adopted by the United States.
It would mean a world-wide inflation, the abandonment
of the gold standard, and, ultimately, chaos.
If the peoples and Governments of Europe live within
their incomes, increase their production as much as possible, and limit their imports to actual necessities, foreign
credits to cover adverse balances would most probably be
supplied by private investors and the demand to resort
to such impracticable methods as Government loans and
bank credits would cease.
There is no more logical or practical step toward solving their own reconstruction problems than for the Allies
to give value to their indemnity claims against Germany
by reducing those claims to a determinate amount which
Germany may be reasonably expected to pay, and then
for Germany to issue obligations for such amount and be
set free to work it out. This would increase Germany's
capacity to pay, restore confidence, and improve the
trade and commerce of the world. The maintenance of
claims which can not be paid causes apprehension and
serves no useful purpose.
Private investors can only make loans to the extent of
their savings in excess of domestic capital requirements
and then will only make them to the extent that they
have confidence in the securities or obligations offered.
The adoption of the measures indicated should add to the
confidence of the private investor.
If the Chamber of Commerce of the United States considers it advisable and desirable to designate representatives to attend an unofficial conference, the Treasury does
not desire to offer any objection provided the scope and
character and limitations of such a conference as well as
the impossibility of United States Government action
are clearly understood.
Cordially yours,
CARTER GLASS.
HOMER L. FERGUSON, Esq.,
President, Chamber of Commerce of the United States cf
America, Washington, D. C.
[From the Annual Report of the Secretary of the Treasury, 1919.]
THE INTERNATIONAL FINANCIAL SITUATION.
The international financial situation is one of great
importance and in which we are seriously interested.
The present position relative to foreign financing and the
general policy of the Treasury concerning this vital problem should be fully stated.
Since the armistice the United States has advanced to
the Governments of the Allies, as of the close of business
October 31, 1919, the sum of $2,329,257,138.55, and there
remained on that date an unexpended balance of $593,628,111.45, from the total loans of $10,000,000,000 authorized
under the Liberty loan acts.
The Treasury asked and obtained power for the War
Finance Corporation to make advances up to the amount
of $1,000,000,000 for nonwar purposes, and the War Finance
Corporation is prepared to make such advances.
By the act approved September 17, 1919, the Federal
Reserve Board is authorized to permit, until January 1,
139
1921, national banks to invest to a limited extent in the
stock of American corporations principally engaged in
such phases of international or foreign financial operations
as may be necessary to facilitate exports.
The Secretary of War is authorized to sell surplus Army
stores on credit.
The United States wheat director is authorized to sell
wheat to Europe on credit.
The power which at present exists in the Government
or governmental agencies to assist in meeting Europe's
financial needs is, therefore, considerable. This power
must, of course, be exercised with extreme caution and
with the most careful regard for the urgent needs of our
own people for an ample supply of foodstuffs and other
necessities of life at reasonable prices.
The Treasury is considering with representatives of the
Governments of the Allies the funding of the demand
obligations which the United States holds into long-time
obligations and at the same time the funding during the
reconstruction period or, say, for a period of two or three
years, of the interest on the obligations of foreign Governments acquired by the United States under the Liberty
loan acts.
The Treasury believes that the need of Europe for financial assistance, very great and very real though it is, has
been much exaggerated both here and abroad. Our hearts
have been so touched by the suffering which the war left
in its train and our experience is so recent of the financial
conditions which existed during the war (when men were
devoting themselves to the business of destruction) that
we are prone to overlook the vast recuperative power
inherent in any country which, though devastated, has
not been depopulated, and the people of which are not
starved afterwards. We must all feel deep sympathy for
the suffering in Europe to-day, but we must not allow our
sympathy to warp our judgment and, by exaggerating
Europe's financial needs make it more difficult to fill them.
Men must go back to work in Europe, must contribute to
increase production. The industries of Europe, of course,
can not be set to work without raw materials, machinery,
etc., and, to the extent that these are to be secured from
the United States, the problem of financing the restoration
of Europe belongs primarily to our exporters. Governmental financial assistance in the past and talk of plans for
future Government or banking aid to finance exports have
apparently led our industrial concerns to the erroneous
expectation that their war profits, based so largely on
exports, will continue indefinitely without effort or risk
on their part. To them will fall the profits of the exports
and upon them will fall the consequences of failure to
make the exports. So soon as domestic stocks, which
were very low at the time of the armistice, have been
replenished, those industries which have been developed
to meet a demand for great exports, paid for out of Government war loans, will be forced to close plants and forego
dividends unless they maintain and develop an outlet
abroad. The industries of the country must be brought to
a realization of the gravity of this problem, must go out and
seek markets abroad, must reduce prices at home and
abroad to a reasonable level, and create or cooperate in
creating the means of financial export business. There is
no reason for high commodity prices in the specter of
European demand nor for high interest rates in the specter
of European credits. Our fear must be that the cessation
of war exports will result in closed plants, passed dividends,
and general depression. The way to avoid those evils is
to stimulate production and encourage industrial and
commercial activity and not to burden them with high
interest rates which are a deterrent to these things, but
unfortunately are not a deterrent, except temporarily,
in such times as these to speculation.
140
FEDERAL RESERVE BULLETIN".
Since armistice day, the consistent policy of the Treasury
has been, as far as possible, to restore private initiative
and remove governmental controls and interferences. It
has been the view of the Treasury that only thus can the
prompt restoration of healthy economic life be gained.
The embargoes on gold and silver and control of foreign
exchange have been removed, as well as the voluntary
and informal control of call money and the stock exchange
loan account. The control exercised by the Capital
Issues Committee over capital issues has been discontinued. Thus the financial markets of the United States
have been opened to the whole world and all restrictions
removed that might have hindered America's capital and
credit resources, as well as its great gold reserve, from'
being available in aid of the world's commerce and
Europe's need.
There are those who believe that the dollar should be
kept at par—no more, no less—in the market of foreign
exchange. If effective action were taken to carry out
such a policy, it could only be done by drawing gold out
of the United States when the dollar would otherwise be
at a discount and by inflating credit when the dollar
would otherwise be at a premium.
The dollar is now at a premium almost everywhere in the
world. Its artificial reduction and maintenance at the
gold par of exchange in all currencies is quite unthinkable
unless we propose to level all differences in the relative
credit of nations and for our gold reserve substitute a reserve consisting of the promises to pay of any nation that
chooses to become our debtor. Inequalities of exchange
reflect not only the trade and financial balance between
two countries but, particularly after a great war such as
that we have been through, the inequalities of domestic
finance. The United States has met a greater proportion
of the cost of the war from taxes and bond issues than any
other country. Largely as a consequence of this policy
the buying power of the dollar at home has been better
sustained than has the buying power at home of the currency of any European belligerent. For the United States
to determine by governmental action to depress the dollar
as measured in terms of foreign exchange and to improve
tfie position of other currencies as measured in terms of
dollars would be to shift to the American people the tax
and loan burdens of foreign countries. This shifted burden would be measured by the taxes to be imposed and
the further loans to be absorbed by our people as a consequence and by increased domestic prices.
United States Government action at this time to prevent
in respect to foreign exchange the ordinary operation of the
law of supply and demand, which automatically sets in
action corrective causes, and to prevent the dollar from
going to a premium when its natural tendency is to do so
would artificially stimulate our exports, and, through the
competition of export demand with domestic demand,
maintain or increase domestic prices.
The view of the Governments of the Allies, I .take it, is
that had they (after the war control of their imports had
been relaxed) attempted to continue to "peg" their exchanges here at an artificial level by Government borrowing, the effect would have been to stimulate their imports
and discourage their exports, thus aggravating their
already unfavorable international balances.
It is not, of course, to be expected that the breach left
by the withdrawal of governmental support of exchange
can be filled by private initiative until the ratification of
the treaty of peace has given reasonable assurance against
the political risk which, rather than any commercial or
credit risk, now deters private lenders. Some progress haj3
already been made in placing here through private channels the loans of allied and neutral European countries and
municipalities. The Treasury favors the making, in our
markets, of such loans, which contribute to relieve the
FEBRUARY, 1920.
exchanges. I am sure that when peace is consummated
and the political risk measurably removed American exporters and European importers will lay the basis of credit
in sound business transactions, and I know that American
bankers will not fail then to devise means of financing the
needs of the situation nor American investors to respond to
Europe's demand for capital on a sound investment basis.
Meanwhile it is well to remember the invisible factors
which are always at work toward a solution of the problem.
Immigrants' remittances to Europe are and will continue
to be a very large item in rectifying the exchanges. As
soon as peace is concluded foreign travel will be a further
item. Another very important factor is the purchase of
European securities and properties and repurchase of
foreign-held American securities by American investors;
but the principal factor in Europe's favor is the inevitable
curtailment of her imports and expansion of her exports.
These processes, of course, are stimulated by the very position of the exchanges which they tend to correct.
European Financial Situation.
The following statement regarding the European financial situation was issued by Mr.
Herbert Hoover on January 6, 1920:
" I emphatically disagree with the statements being
circulated by European propagandists, either as to the
volume of European financial needs from the United States
or their suggestions that the great bulk of these needs
can not be met by ordinary commercial credits and that
thus our Treasury must need supply further large loans.
Aside from some secondary measures by our Government,
the problem is one of ratification of peace and ordinary
business processes and not one of increasing our burden of
taxation. Our taxes are now 600 per cent over prewar
rates, while no one of the Allies has increased taxes to this
extent. We simply can not increase this burden. We
can not increase the volume of credits that Government
lending implies without double damage to ourselves.
"Of secondary measure, some dozen cities in central and
southern Europe need breadstuffs on credit from the Grain
Corporation to prevent actual starvation, and the Allies
are asking for temporary delay in paying interest on our
Government loans to them. These dozen cities can not
find commercial credits and the Allies can not pay this
year in any event. The actual situation varies with every
country in Europe, and generalities are not worth print
paper. The European neutral countries hav e made money
from the war and have asked no favors. Outside of
interest to the Allies, Britain states it wants nothing but
commercial credit. These she can always obtain if she
puts up her ample collateral assets. France also has
unpledged foreign assets that would cover most of her
important needs.
'' The position of Italy is more difficult, but with demobilization of her army and her navy her needs would be
less. So far as I know, no one is threatening her with
war. It is possible that some of her larger cities may need
breadstuff assistance beyond the ability of commercial
credits. Germany could pay or secure commercial credits
FEBRUARY,
1920.
FEDERAL RESERVE BULLETIN.
if the Reparation Commission would allow her to mobilize
and use her resources until she gets further on her feet.
The Baltic States have enough food except milk for their
children, and we are taking care of this. Bulgaria,
Greater Serbia, Greece, Roumania, South Russia and
Turkey (except Armenia) have a surplus of food this year
and are exporting it. If they prohibit the import of silk
stockings, perfume, and other nonessentials, they could
procure their other imports or at least live until they do it
on a business basis. Hungary could feed herself if Roumania would return the cattle and grain she abstracted
last summer.
"We are therefore left with Finland, Belgium, Poland,
€zecho-Slovakia, and Austria to consider. Austria is the
sorest point in Europe, and while she must be fed this
winter, the Allies should be made to realize that any
assistance from us is upon condition that she is free to
make such political associations as will take her out of a
perpetual poorhouse. Most European statesmen naturally desire to please their people by borrowing from our
Government to revive prosperity overnight. But to my
mind the one essential thing for all those countries which
can not provide for themselves out of normal commerce is
to feed their people over this winter and to devote themselves to setting their internal finances in order and defer
immediate rehabilitation of industry until the world
recovers sufficiently for them to secure commercial credits
and private capital. In the food matter, the five last
countries mentioned will take care of their agricultural
and small town populations out of their crops of last year.
These countries and Italy's deficiency in commercial
credits lies in a dozen large cities, aggregating, say, fifteen
or twenty million people. Even these have some resources that to my mind are sufficient to take care of their
food needs except bread, together with milk for the children, and the most of the latter is being taken care of by
charity.
" Therefore the problem from the point of view of action
of our Government, outside the temporary deferring of
interest, further reduces itself to helping out with the
bread supply of less than 5 per cent of the population of
Europe. The latter is only an echo of the job that our
Government had to undertake in the year ending August
1 last in saving Europe from famine. Therefore no such
situation exists as that which confronted us last year at this
time, and there is no ground for hysteria on either side of
the Atlantic.
'' This year the Government has a large surplus of wheat
flour acquired by it under the wheat guarantee. In the
ordinary course we should hold it for spot cash for foreign
nations. We could solve the bread situation in these
-dozen cities in Europe if the Grain Corporation were to sell
about 15 per cent of our surplus flour on short credits to
meet these acute situations. The difference between these
short credits and cash is the difference between starvation
and existence to them. These plans require no new appropriations on our Treasury and no additional taxes on our
141
people, but it does require an understanding in Europe
that this country is nearing the time when it must cease to
carry the economic burden of Europe except through
charity and ordinary business processes set up under proper
security. The American people are now finding $5,000,000
a month in charity to feeding 3,000,000 of children and
fighting diseases. If we add bread supply on Government
credit to these starving cities with this and business credits
we would be doing our share of world responsibility. It
would appear that the 70,000,000 people of prosperous
neutrals who have not suffered in the war should also be
the scene of European appeals. Many people of Europe
are not at work. For instance, their coal production is less
than 7Q per cent and their economic demobilization is in a
great degree due to this alone. Only they can remedy it.
The currency, taxation, and internal financial reorganization problems are their own problems. We can not reorganize these things for them.
"If we do undertake the solution of the bread question
by our Government, our action will benefit and protect the
other nations of Europe from infection of anarchy and
chaos. Poland is the sole shield of Europe from bolshevik
invasion. If we extend this help, it should be upon consideration that the stronger nations in Europe will do their
full part in many directions.
"While a restoration of last year's complete control of
supplies in Europe would make things go smoother, it
stifles the initiative to help themselves and does more
damage than good. We withdrew from Europe at last
harvest precisely for this reason, that Europe had to be
impressed with the necessity to go back to work and
ordinary business processes. The world needs to get away
from the notion of governmental help, both internally and
externally, and get back to work and business."
Final Report of Cunliffe Committee.
(From Board of Trade Journal, Dec. 18,1919.)
The committee on currency and foreign exchanges, which was constituted under the
chairmanship of Lord Cunliffe, has made its
final report to the lords commissioners of His
Majesty's Treasury (Cmd. 464, price Id. net).
The committee was originally appointed in
January, 1918, "to consider the various problems which will arise in connection with currency and the foreign exchanges during the
period of reconstruction and report upon the
steps required to bring about the restoration
of normal conditions in due course/' The
following words were subsequently added to
the terms of reference: "And to consider the
working of the bank act, 1844, and the constitution and functions of the Bank of England
with a view to recommending any alterations
142
FEDEEAL EESERVE BULLETIN.
FEBRUARY, 1920.
tions which experience suggested to be desirable have been
made in the constitution and management of the bank
during the war, and we do not now think it necessary to
make any further recommendations.
5. Government borrowings on ways and means advances
from the Bank of England.—We desire to draw attention to
the extensive use made during the war of the system of
ways and means advances from the Bank of England. We
referred to this matter in paragraph 16 of our interim report and explained its effect in causing credit and currency expansion. The powers given to the Government
My Lords: 1. We have the honor to present herewith by Parliament to borrow from the Bank of England in the
our final report on certain matters referred to us in Jan- form of an overdraft on the credit of ways and means were,
uary, 1918, with which we were not in a position to deal as thejname implies, intended to enable the Government
in our interim report in August of that year.
to anticipate receipts from revenue or permanent borrow2. Foreign exchanges.—We stated in the introduction to ings for a brief period only. Indeed, Parliament by exour interim report our opinion that & sound system of cur- pressly providing that all such advances should be repaid
rency would in itself secure equilibrium in the foreign in the quarter following that in which they were obtained,
exchanges. We have reviewed the criticisms which have showed that it had no intention of bestowing upon the
been made upon this part of our report, but we see no Government the power of securing an overdraft of indefireason to modify our opinion. We nave found nothing nite duration and amount. Under the exigencies of war
in the experiences of the war to falsify the lessons of pre- finance the Government found it necessary to reborrow in
vious experience that the adoption of a currency not con- each quarter on the credit of ways and means the amount
vertible at will into gold or other exportable coin is likely needed to enable them to comply with the statutory rein practice to lead to overissue and so to destroy the quirement that the previous quarter's ways and means
measure of exchangeable value and cause a general advances should be repaid, with the result that the total
rise in all prices and an adverse movement in the toreign outstanding advances remained for a long time at a high
figure. We are glad to see that efforts are now being made
exchanges.
3. The nominal convertibility of the currency note to reduce this overdraft to more moderate dimensions.
which has been sustained by the prohibition of the export
We therefore hope, now that conditions are less abnorof gold is of little value. The weakness of the exchanges mal, that the Government will confine its use of ways and
is, in a measure, due to trade conditions, but an important means and advances from the Bank of England to providcause of the depreciation in sterling in New York and ing for purely temporary necessities. Such advances
other financial centers is, in our opinion, to be found in afford a legitimate method of tiding over a few weeks'
the expanded state of credit in this country. The exist- shortage, but are entirely unsuitable for borrowings over
ing expansion is not merely the legacy of the stress of war a longer period.
finance and Government borrowings, which even now
6. Foreign banks.—Several of our witnesses have called
have not ceased, but also in part the result of maintaining attention to the conditions under which it is open to forrates for money in London below those ruling in other eign banks to establish themselves in this country. We
important financial centers. The difficulties of the for- suggest that this is a matter which should receive the early
eign exchanges' position are aggravated by the grant of attention of His Majesty's Government.
long-term loans and credits, whether directly or under
7. Scottish and Irish banks.—We have now taken eviguaranty or otherwise by the Government or by private dence in regardAto the application of the recommendations
lenders, to enable foreign states or their nationals to pay in our intenm^report to Scotland and Ireland. The status
for exports from this country. Few of these loans and of legal tender was given to the notes of the Scottish and
credits will be liquidated at an early date. The large Irish banks of issue as an emergency measure to tide over
payments which we have to make to America, North and the period at the outbreak of war when a serious shortage
South, for necessary imports of foodstuffs and raw mate- of currency was threatened, a condition of affairs which no
rials from those countries make it essential that we, in our longer obtains. Some of the witnesses on behalf of the
turn, should secure payment in cash for as large a propor- Scottishfand Irish banks showed a marked desire to retain
tion as possible of our exports visible and invisible. We the privilege of legal-tender status for their notes. In our
recommend, therefore, that preference should be given to opinion the grant of legal-tender status could not be given
exports to countries which are able to make payment in permanently to the notes of Scottish and Irish banks exceptfunder statutory conditions similar to those embodied
the ordinary course of trade.
Increased production, cessation of Government borrow- in the bank act of 1844. The evidence before us indicates
ings, and decreased expenditure both by the Government that rather than be subjected to such conditions the banks
and by each individual member of the nation are the first would prefer the restoration of the prewar status. We
essentials to recovery. These must be associated with the accordingly recommend that the prewar status be restored.
restoration of the prewar methods of controlling the cur- We further recommend that when the position which we
rency and credit system of the country for the purpose of contemplate in our interim report is ultimately reached,
reestablishing at an early date a free market for gold in the cover held by the Scottish and Irish banks for their
excess issue shall take the form of any legal tender at that
London.
4. Bank of England.—The principles of the bank charter time in existence.
8. Currency note issue.—We have considered whether
act of 1844 were fully considered by us in our interim
report. We have examined with care the opinions there steps should not be taken at an early date to impose limexpressed in the light of certain criticisms which have itations upon the fiduciary portion of the currency note
been made with regard to them. We see, however, no issue with a view to the restoration of the normal arrangereason to alter our conclusions. We have again considered ments under which demands for new currency operate to
the principles governing the banking systems of the prin- reduce the reserve in the banking department of the Bank
cipal foreign countries, and we are satisfied that they are of England. In view of the fact that demobilization is
not so well adapted to the needs of this country as those approaching completion and that as we hope fresh Govcontained in the act of 1844. Certain important altera- ernment borrowing will shortly cease, we consider that
which may appear to them to be necessary or
desirable."
In the House of Commons on Monday the
Chancellor of the Exchequer announced the
action which the Government proposed to take
on the report. We give below the text of the
committee's report and of Mr. Chamberlain's
statement:
FEBRUARY, 1920.
FEDERAL. RESERVE BULLETIN.
effect should now be given to the recommendation made
in our interim report that the actual maximum fiduciary
circulation in any year should become the legal maximum
for the following year, subject only to the emergency arrangements which we proposed in paragraph 33 of our
interim report. The policy of placing Bank of England
notes in the currency note reserve as cover for the fiduciary
portion of the issue as opportunity arises should, of course,
be continued. We recommend further that the treasury
minute made under section 2 of the currency and banknotes act, 1914, providing for the issue of currency notes
to joint-stock banks, which is in fact inoperative, should
now be withdrawn.
The committee wish to place on record their deep sense
of obligation to Mr. G. C. Upcott, who served as secretary
to the committee from the beginning with unfailing zeal,
knowledge, and ability. They are also greatly indebted
to Mr. H. E. Fass, who was appointed joint secretary with
Mr. Upcott in July, 1919, and rendered important and
efficient service in the closing period of the committee's
labors.
We have the honor to be, My Lords, your obedient
servants,
(Signed)
CUNLIFFE (Chairman).
C. S. ADDIS.
R. E. BECKETT.
GASPARD FARRER.
HERBERT C. GIBBS.
W. H. N. GOSCHEN.
INCHCAPE.
R. W. JEANS.
A. C. PIGOU.
GEO. F. STEWART.1
W. WALLACE.
G. C. UPCOTT,
H. E. FASS,
Secretaries.
DECEMBER 3,1919.
THE GOVERNMENT PROPOSALS.
In reply to a question in the House of
Commons on Monday by Lieutenant-Commander Kenworthy, the Chancellor of the
Exchequer said:
The committee reaffirm the views set forth at greater
length in their first interim report, as to the importance
of restoring at the earliest possible moment the prewar
methods of controlling the currency and credit system of
the country, and reestablishing the free market for gold
in London. They point out that the difficulties of the
foreign exchange position are aggravated by the grant of
loans and credits to enable foreign States to pay for exports
from this country, when we in our turn have to pay cash
for imports of necessities from America, North and South,
and they recommend that preference be given to exports
to countries which are able to make payment in the ordinary course of trade. The argument as to the exchange
is obviously true, and we are fully alive to the importance
of this aspect of the question. There are, however, other
considerations arising out of our relations with our allies,
and out of the economic condition of Europe, to which
due weight must be given in particular cases. Subject
143
to the fulfilment of these obligations I agree with the
committee.
The Government further agree with the committee's
view that increased production, cessation of Government
borrowings, and decreased expenditure, both public and
private, are the first essentials to recovery. So far as I can
foresee, the highest point of the national debt will be reached
in the course of the next month or six weeks, and I have
every hope that thereafter we may be in a position to
effect a gradual but steady diminution of the gross debt.
In paragraph 4 the committee reaffirm their view that the
principles of the bank charter act of 1844 are well adapted
to the needs of this country. In paragraph 5 the committee express their gratification at the efforts now being
made to reduce the amount of ways and means borrowings
from the Bank of England, and express the hope that,
with the return of more normal conditions, the Government will confine the use of such advances to what the
committee describe as their legitimate function, namely,
to tide over a few weeks' shortage. I am in entire agreement with the committee on this matter, and every effort
will be made to continue the process of paving off such
advances. The question of the position of foreign banks
' in this country, referred to in paragraph 6 of the report, is
already under the consideration of the Board of Trade.
In paragraph 7 the committee recommend that the legal
tender status accorded to the notes of Scottish and Irish
banks as an emergency measure in August, 1914, be withdrawn, and prewar conditions restored. I propose to
give effect to this recommendation forthwith, and a proclamation will be submitted this week to his majesty ii\
council to take effect as from 1st January, 1920.
In paragraph 8 the committee make three recommendations, viz, (a) that the actual maximum fiduciary circulation of currency notes in any one calendar year be fixed
as the legal maximum for the next; (b) that the practice
of placing Bank of England notes in the currency note
reserve as cover for the note issue as opportunity arises be
continued; (c) that the Treasury minute made under
section 2 of the currency and bank note act, 1914, providing for the issue on loan of currency notes to jointstock banks be now withdrawn. I propose to give immediate effect to the first and third of these recommendations, and to continue the policy recommended in .the
second. I propose to circulate in the official report copies,
of the Treasury minutes issued on their points,
TREASURY MINUTES.
The Treasury minutes referred to by Mr.
Chamberlain are as follows:
The Chancellor of the Exchequer draws the attention of
the board to paragraph 8 of the final report of the committee
on currency and foreign exchanges after the war, which
recommends the imposition of a maximum limit on the
issue of currency notes under the currency and bank
notes act, 1914. The chancellor proposes to the board that
steps shall be taken to give effect to the recommendation
that the actual maximum fiduciary circulation of currency
notes in any year shall be the fixed maximum for the
following year.
The maximum fiduciary circulation during the expired
portion of the current calendar year has been £326,608,298
10s., and the chancellor accordingly proposes that direc1
Subject as regards the recommendations of paragraph tions shall now be given to the Bank of England restricting
7 to the following reservation:
them from issuing currency notes during the 12 months
"Having regard to the evidence given by the witnesses commencing 1st January, 1920, in excess of a total of
from Ireland, the prewar status should not be restored £320,600,000, except against gold or Bank of England
in Ireland until the Government considers the time notes, and from issuing m the calendar year commencing
opportune. (Signed) GEO. F. STEWART.
"st January in any year henceforward notes in excess of
144
FEDERAL RESERVE BULLETIN.
the actual maximum fiduciary circulation of the preceding
12 months. My Lords concur.
Under the powers conferred by section 2 of the currency
and bank notes act, 1914, and the treasury minutes of 6th
August and 20th August, 1914, and 29th February, 1916,
the treasury gave directions embodied in those minutes
for the issue of currency notes to bankers, and, upon the
application of the national debt commissioners, to the
postmaster-general, for the purpose of providing cash for
the post office savings bank fund, and to the order of the
trustees of any trustee savings bank for such amount as
might from time to time be necessary to provide funds for
the payment of sums due to depositors (including depositors
in special investment departments), the notes so issued
being treated as interest bearing advances by the treasury.
The arrangements then made were designed to meet the
danger of a shortage of currency in the circumstances
attendant on war conditions, and the committee on currency and foreign exchanges after the war in their final
report recommend that they should now be discontinued.
The Chancellor of the Exchequer therefore recommends
to the board that the directions given by the minute cited
shall be revoked as from 1st January, 1920, in so far as they
provide for the issue of currency notes as advances to
bankers and to the postmaster-general and the trustee
savings banks, provided that any advance made under
those powers and still outstanding upon that date shall be
unaffected by such revocation and remain so unaffected
until repayment. My Lords concur.
GOLD RESERVES OF PRINCIPAL BANKS
OF ISSUE, 1900-1919.
In the table
amounts of gold
banks of issue at
1900 and 1919.
vault holdings.
below are shown revised
reserves held by the leading
the end of each year between
The figures represent actual
The amounts of gold held
FEBRUARY, 1920.
abroad and foreign gold credits have been
uniformly excluded. This affects chiefly the
figures of the Bank of France and of the Bank
of Russia. British figures are exclusive of
$138,695,000 held as reserve by the Treasury
against currency notes outstanding. For Italy,
the figures given represent the amounts of
gold in vault reported by all three banks of
issue and not merely by the Bank of Italy.
Swiss figures prior to 1908 represent gold holdings of all banks of issue. Figures for 19081918 represent gold holdings of the Central National Bank organized in 1907.
Figures for the United States include—
(1) Amounts of gold held in the Treasury of
the United States at the end of the calendar
year and reported among the free assets of the
Government; i. e., exclusive of gold cover for
gold certificates outstanding; also of amounts
of gold held for redemption of Federal Reserve
notes.
(2) Amounts of gold held by the national
banks and reported in their statements to the
Comptroller nearest the close of the years
1900-1916. Of the clearing-house certificates
reported by the national banks 60 per cent was
estimated to represent gold.
(3) At the close of 1914-1919, gold holdings
of the Federal Reserve Banks. These holdings
are exclusive of the amounts of gold held by
foreign7 agencies, but include amounts of the
banks and agents' redemption funds held in
the Treasury.
Movement of the gold reserves of the principal central banks, 1900-1919.
[In thousands of dollars.]
United
States
Treasury,
national
banks,
and
Federal
Reserve
Banks.
Dec. 31,1900.
1901.
1902.
1903.
1904.
1905.
1906.
1907.
1908,
1909.
1910
1911
1912
1913
1914
1915
1916
1917
1918
1919
511,465
532,656
561,697
544,836
590,162
620,961
677,566
630,243
719,193
703,358
718,124
762,937
790,290
779,292
863,135
1,078,741
1,200,831
1,773,072
2,248,295
2,093,138
Bank
of England.
138,896
156,042
144,909
140,699
145,641
138,842
141,442
149,625
149,559
158,785
152,592
157,860
147,594
170,245
338,191
250,510
264,275
283,899
384,937
444,516
Banks
Bank Russian of Italy, Bank of German Austroof
Hun- Bank
State
of
Naples, Belgium. Reichs- garian
RuFrance. Bank.
and
bank.
mania.
Bank.
Sicily.
364,700
451,427
77,817
351,300
475,494
80,689
364,900
490,751
86,900
378,000
455,731
116,372
453,400
513,110
120,806
368,700
555,531
155,534
458,300
522,200
179,271
488,500
519,344
217,419
555,700
673,223
227,508
604,400
674,612
232,291
634,300
632,924
238,544
648,500
618,855
244,737
683,900
619,009
248,261
786,800
678,856
265,476
803,400
802,591
269,584
831,200
967,950
263,278
758,396
652,885
223,400
667,041
639,682
206,700
664,017
202,457
694,847 i 335,784 2 200,122
» Aug. 1,1919, data for the bank controlled by the Kolchak government.
2
Sept. 30,1919.
119,249
150,586
130,219
132,942
168,839
142,060
114,665
118,515
183,000
162,228
157,459
173,352
184,998
278,687
498,508
581,954
599,873
572,768
538,804
3
259,546
51,417
20,578
22,185
21,690
22,600
23,169
23,007
24,254
25,586
30,638
30,680
39,816
48,092
55,423
59,131
56,619
3
Dec. 15,1919.
186,312
226,129
224,350
233,601
217,618
225,344
222,737
239,549
274,326
267,543
261,732
245,113
251,421
213,757
138,758
58,759
53,717
53,074
3
47,152
29,242
29,733
42,647
34,487
34,576
34,577
53,074
« 34,776
« Dec. 6,1919.
FEBRUARY, 1920.
145
FEDERAL RESERVE BULLETIN.
Movement of the gold reserves of the pricipal central banks,
1900-1919—Continued.
[In thousands of dollars.]
Dec. 31,1900.
1901.
1902.
1903.
1904.
1905.
1906.
B a n k of
Bank of
Sweden.
Bank of
Norway.
Bank of
Spain.
9,877
12,591
13,942
15,814
16,883
18,281
19,277
6,508
7,212
5,897
5,678
6,546
6,522
8,076
67,555
67,627
74,233
70,175
71,810
72,505
74,373
23,531
27,699
22,668
20,208
27,159
31,863
26,706
Netherlands.
1907.
18,847
8,281
75,521
36,899
1908.
1909.
1910.
1911.
1912.
1913.
1914.
1915.
1916.
1917.
1918.
1919.
20,957
21,556
21,535
22,758
26,816
27,372
29,088
33,385
49,183
65,513
76,532
75,356
8,380
8,964
9,711
10,844
10,814
12,846
11,181
18,028
33,027
31,214
32,708
39,590
76,259
77,760
79,280
80,693
84,384
92,490
110,444
166,414
241,424
379,597
430,072
472,464
40,608
48, &31
49,948
56,426
65,032
60,898
83,663
172,530
236,217
280,689
277,156
256,204
Conversion fund
B a n k of
Bank of
of the
SwitzerArgentine Japan.
land.
Government.
19,322
32,576
21,058
34,326
20,530
53,897
20,776 I 36,895
58,306
20,653 I 48,570
39,883
20,546
57,624
21,181
73,380
99,115
f U0,907
101,414
80,628
2 14,568
22,674
84,498
122,261
23,921
108,595
166,447
30,034
110,857
179,447
31,009
114,233
182,394
33,416
123,141
215,031
32,801
111,846
224,989
45,922
108,791
213,906
48,275
123,836
66,585 « 251,158
204,644
69,025 < 252,390 323,835
80,041 4 252,380
361,722
99,779 «,« 294,094 M39,577
Bank of
Java.
Canadian
gold
Total.
2,029,813
2,165,594
2,216,583
2,243,835
2,480,232
2,516,573
2,665,150
2,719,034
2 8,131
3 10,582
3 16,046
3 10,027
3 12,418
3 13,804
3 28,984
5 43,423
8 67,827
160,798
157,196
188,331
190,770
202,176
200,576
202,965
3,154,007
3,296,554
3,322,114
3,422,553
3,573,046
4,039,727
4,658,650
5,147,194
5,079,807
5,864,879
5,899,288
6,109,154
1
Of the banks of issue.
a Of the Central National Bank.
• Figures as of Mar. 31.
«Exclusive of the gold held in the Argentine legations abroad and the 10,000,000 gold pesos in the conversion fund of the Banco de la Nacitfn.
ft Dec. 28,1918.
« Oct. 31,1919.
' Dec. 6,1919.
a Dec. 15,1919.
v. 29,1
9 Nov.
,1919.
Changes in Excess Reserves ("Free Gold")
During 1919.
In the table below and attached diagram
there are presented figures showing weekly
changes in the amounts of minimum reserves
required to be held by Federal Reserve Banks
against net deposits and Federal Reserve
notes in circulation, also like changes in the
banks' total cash reserves. By deducting from
the total cash reserves the aggregate amounts
required to be held as reserves against net deposit and note liabilities, we obtain figures of
excess reserves, or of "free gold," which may
serve as the basis of further reserve deposit
credit or additional Federal Reserve note circulation.
For the past calendar year there is shown a
reduction in the amount of "free gold" from
550 to 315.9 millions. This is the combined
result of the growth of required deposit reserves from 543 to 596.6 millions of required
note reserves from 1,059 to 1,223.1 millions,
and the decline in cash reserves from 2,152.2
to 2,135.5 millions.
Net deposits and required deposit reserves
fluctuated largely in accordance with the volume of discount operations, which were lowest
during the early weeks of the year and about
the middle of September, and highest during
May following the consummation of the Victory loan, and in November of the past year.
Federal Reserve note circulation and required note reserves fluctuated within narrow
limits during the first nine months of the year.
It was only in the last week of September that
note expansion on a large scale started; as a
matter of fact the increase in required note
reserves between September 19 and December 26 was about 11 millions larger than the
increase for the entire year.
Cash reserves reached the highest point in
June. Removal of the gold embargo early in
June followed by considerable export withdrawals of gold accounts for the gradual reduction in reserves from 2,270.3 millions on
June 6 to 2,138.5 millions on September 12.
This movement was checked temporarily by
transfers to London of large amounts of German gold acquired from the United States Grain
Corporation, but resumed its downward course
beginning with the last week in October, the
decline in reserves between October 24 and
the last Friday in December being 79 millions,
as against a decline of 17 millions only for the
entire year.
146
FEBRUABY, 1920.
FBDEEAL RESERVE BULLETIN".
At the beginning of 1919 the "free gold'7 of
the system totaled $550,084,000. On the basis
of a 35 per cent required deposit reserve and
40 per cent required note reserve, this amount
would support 1,571.7 millions of additional
net deposits, or 1,375.2 millions of additional
note circulation. At the close of the year the
amount of free gold had declined to $315,913,000, which is sufficient support for 902.6
millions of additional net deposits or 789.8
millions of additional Federal Keserve note
circulation. If it be assumed that for every
$2 of increase in net deposits there will be an
increase of $3 in Federal Reserve note circulation, the possible maximum expansion works
out at $831,350,000, of which $332,540,000, or
40 per cent, will be represented by net deposits
and $498,810,000, or 60 per cent, by Federal
Reserve note circulation.
Required reserves against net deposit and Federal Reserve note liabilities, and amounts of gold held in excess of required
reserves.
[In thousands of dollars.]
Net deposits.
Amount.
1919.
1,551,509
1,575,867
1,592,483
1,679,536
1,659,457
1,614,161
1,744,662
Jan.3
Jan. 10
Jan. 17
Jan. 24
Jan. 31
Feb.7
Feb. 14
Feb. 20
Feb. 28
Mar.7
Mar. 14
Mar. 21
Mar. 28
Apr.4
Apr. 11
Apr. 18
Apr. 25
May 2
May 9
May 16
May 23
May 29
June 6
June 13
June 20
June 27
July 3
July 11
July 18
July 25
Aug.l
Aug. 8
Aug. 15
Aug. 22
Aug.29
Sept.5
Sept. 12
Sept. 19
Sept. 26
Oct. 3
Oct. 10
Oct. 17
Oct. 24
Oct. 31
Nov. 7
Nov. 14..
Nov.21
Nov.28
Dec. 5
Dec. 12
Dec. 19
Dec. 26
,
,769,445
,768,646
L, 741,425
,703,366
,777,915
,735,070
,752,194
,774,950
,765,309
,865,315
,797,505
,830,920
,712,118
,794,770
,771,329
,750,694
,772,003
[,842,433
,769,496
,796,561
,766,181
,820,817
,688,674
1,621,147
1,629,797
1,624,117
1,618,216
1,499,914
1,634,074
1,726,266
1,743,850
1,796,159
1,792,402
1,850,518
1,870,510
1,858,258
1,846,800
1,889,399
1,761,521
1,786,424
1,610,924
1,704,470
Required
reserve of
35 per cent.
543,028
551,553
557,369
580,810
564,956
610,632
605,779
628,859
630,732
619,306
619,026
609,499
596,178
622,270
607,275
613,268
621,233
617,858
652,860
629,127
640,822
599,241
628,170
619,965
612,743
620,201
644,852
619,324
628,796
618,163
591,036
567,401
570,429
568,441
566,376
524,970
'571,926
604,193
610,348
628,656
627,341
647,681
654,679
650,390
646,380
661,289
616,532
625,248
563,823
596,565
Federal Reserve notes
in circulation.
Amount.
2,647,605
2,590,681
2,513,089
2,466,556
2,450,729
2,454,165
2,468,388
2,466,248
2,472,307
2,488,537
2,503,095
2,510,687
2,521,776
2,547,670
2,548,588
2,543,704
2,549,552
2,549,040
2,556,749
2,532,039
2,504,253
2,519,292
2,513,037
2,499,265
2,488,253
2,499,180
2,552,348
2,538,127
2,512,048
2,504,497
2,506,820
2,532,057
2,540,904
2,553,534
2,580,629
2,611,697
2,621,228
2,621,258
2,655,354
2,708,186
2,741,684
2,752,569
2,753,457
2,752,876
2,806,759
2,808,456
2,817,173
2,852,277
2,881,359
2,907,435
2,988,894
3,057,646
Required
reserve of
40 per cent.
1,059,042
1,036,272
1,005,236
986,622
980,292
981,666
987,355
986,499
988,923
995,415
1,001,238
1,004,275
1,008,710
1,019,068
1,019,435
1,017,482
1,019,821
1,019,616
1,022,700
1,012,816
1,001,701
1,007,717
1,005,215
999,706
995,301
999,672
1,020,939
1,015,251
1,004,819
1,001,799
1,002,728
1,012,823
1,016,362
1,021,414
1,032,252
1,044,679
1,018,491
1,048,503
1,062,142
1,083,274
1,096,674
1,101,028
1,101,383
1,101,150
1,122,704
1,123,382
1,126,869
1,140,911
1,152,544
1,162,974
1,195,558
1,223,058
Total net
Total
deposit and amount
Federal Re- requiredof
serve note reserves.
liabilities.
4,199,114
4,166,548
4,105,572
4,146,092
4,110,186
4,068,326
4,213,050
4,197,044
4,269,046
4,290,627
4,272,540
4,279,333
4,263,201
4,251,036
4,326,503
4,278,774
4,301,746
4,323,990
4,322,058
4,397,354
4,301,758
4,350,212
4,225,155
4,294,035
4,259,582
4,249,874
4,324,351
4,380,560
4,281,544
4,301,058
4,273,001
4,352,874
4,229,578
4,174,681
4,210,426
4,235,814
4,239,444
4,121,172
4,289,428
4,434,452
4,485,534
4,548,728
4,545,859
4,603,394
4,677,269
4,666,714
4,663,973
4,741,676
4,642,880
4,693,859
4,599,818
4,762,116
,602,070
,587,825
,562,605
,574,460
,561,102
,546,622
,597,987
,592,278
,617,782
,626,147
,620,544
,623,301
,618,209
,615,246
,641,705
,624,757
,640,849
,640,558
,665,676
,630,828
,648,539
,604,456
,627,876
,615,266
,612,415
,641,140
,660,103
,624,143
,630,595
,620,891
,650,109
,607,398
,588,815
,602,681
,613,120
,614,867
,573,473
,634,068
,687,467
,707,022
,729,684
,728,724
,748,831
,777,383
,773,772
,773,249
,802,200
,769,076
,788,222
,759,381
,819,623
Ratio of
total cash
Gold in reserves to
Total cash excess of net deposit
reserves required re- and Fed*
serves (free era! Reserve
held.
gold).
note liabilities
combined.
2,152,154
2,161,898
2,170,163
2,168,387
2,179,646
2,175,614
2,185,318
2,191,532
2,188,723
2,205,462
2,196,737
2,208,578
2,210,524
2,218,628
2,211,989
2,230,859
2,240,152
2,237,219
2,242,784
2,245,857
2,247,933
2,255,106
2,270,343
2,261,988
2,234,459
2,216,256
2,195,353
2,180,211
2,177,481
2,161,023
2,156,327
2,152,118
2,151,723
2,142,701
2,135,976
2,136,870
2,138,499
2,162,057
2,187,505
2,205,511
2,202,100
2,199,185
2,214,561
2,205,592
2,187,369
2,200,106
2,186,972
2,159,666
2,154,095
2,160,405
2,154,911
2,135,536
550,084
574,073
607,558
583,927
618,544
587,331
599,254
570,941
579,315
576,193
585,277
592,315
603,382
570,284
606,102
607,063
596,370
602,226
580,181
617,105
606,567
665,887
634,112
619,193
603,841
554,213
520,108
553,338
530,428
535,436
502,009
544,325
553,886
533,295
523,750
523,632
588,584
553,437
518,044
495,078
469,501
485,837
456,761
409,986
426,334
413,723
357,466
385,019
372,183
395,530
315,913
Percent.
51.3
51.9
52.9
52.3
53.0
53.5
51.9
52.2
51.3
51.4
51.4
51.6
51.9
52.2
51.1
52.1
52.1
51.7
51.9
51.1
52.3
51.8
53.7
52.7
52.5
52.1
50.8
49.8
50.9
50.2
50.5
49.4
50.9
51.3
50.7
50.4
50.4
52.5
51.0
49.7
49.1
48.3
48.7
47.9
46.8
47.1
46.9
45.5
46.4
46.0
46.8
44.8
FHBEUAEI, 1920.
FEDERAL EBSEKVE BULLETIN.
fc
TOTAL CASH RESERVES
AND EXCESS RESERVES
Or ALL FEDERAL RESERVE BANKS
DURING THE CALENDAR YEAR 1919.
Curye /.• CashJtescrres regained, against
• JVe£fc]u>si£and,&3Ulbt»/Zabtti£i6S combined,.
C 2 J l C f X f l h S X 5 «
310173431 ?W
1 JAti.
ft2lB84 If IS 252 9 !623296f32D2?3lt I82SI / ISZI& 51219263 IOI7&l3t7H2t2t 5fii£
\FEB. \MCff. \APRL 1 MAY \JVliE\JULY \AUG.\S£PT. \ OCT. \IHOV. 1
147
148
FEDERAL RESERVE BULLETIN.
TERMS OF SALE.
The following is the second of a series of
articles giving data as to current practice and
recent history of terms of sale in the principal
industries. Acknowledgment is due the many
business houses, individuals, and trade associations who have courteously furnished the
information.
IRON AND STEEL.
Pig iron, whether steel making, such as
basic and Bessemer, or foundry or forge, is
sold upon terms of net 30 days from date of
invoice or average date of monthly shipments.
The larger proportion of the steel making pig
iron, however, is transported in molten condition to steel works, and steel products during
the initial stages of rolling, such as ingots,
blooms, and slabs, are in large measure not
commercial products. Terms for billets,
blooms and slabs, into which the ingot is rolled,
are largely one-half per cent 10 days, net 30
days.
Terms for heavier rolled products differ,
standard rails being sold on terms of net 30
days and light rails on terms of one-half per
cent 10 days, net 30 days, while the latter
terms obtain also for structural shapes and
plates. The former are sold to constructors
of buildings, and builders of bridges, ships,
cars, etc., the latter to the same group, as well
as to manufacturers of boilers and tanks.
Turning to light-rolled products, such as merchant and sheet bars and wire rods, these
generally carry terms of one-half per cent 10
days, net 30 days. Terms for all these items
have been in effect for many years. It is
stated that "about 1900 no discount was given
on wire rods. Certain types of merchant bars
are sold to hardware jobbers, but large quantities are also sqld to manufacturers of agricultural implements, vehicles, etc., and some
are further manufactured into bolts, nuts,
spikes, etc. Sheet bars are rolled by purchasers
into black sheets, used for roofing and making
stovepipe receptacles, etc., and into black plate
used in the manufacture of tin plate. Wire
rods provide the raw material for the wire
goods industry.
Rivets (one-half inch and larger in diameter)
and spikes carry terms of one-half per cent 10
days, net 30 days, bolts, nuts, and rivets less
than one-half inch in diameter, terms of 1 per
cent 10 days, net 30 days. Track bolts and
specially designed bolts, however, carry in considerable measure terms of net 30 days, though
FEBRUARY, 1920.
the former in certain cases bear a cash discount
of one-half per cent 10 days. The manufacture of these products is relatively concentrated. There are not over 25 producers of
bolts and nuts, of whom all but three or four
now adhere to the terms given above. About
1912 an unsuccessful effort was made to reduce
the discount and net terms on this item from
2 per cent 10 days, net 60 days, but a similar
effort several years later succeeded. This was
in spite of the strong resistance of the hardware
jobbers, who, however, handle only a small
part of the total output, the major part being
sold direct by the manufacturers to industrial
consumers. It is stated that prior to 1914 or
1915 the discount on rivets was generally 1
per cent.
Wire products, including wire rope and
smooth, barbed, and twisted wire, nails,
and woven wire goods, carry terms of 2 per
cent, 10 days, net 60 days. Similar terms
obtain for welded tubes, pipe, and other
welded tubular products. In the case of purchasers to whom frequent shipments are made,
monthly payment is permitted, terms then
being 2 per cent 10th proximo. Seamless
tubes and other seamless products carry terms
of 2 per cent 10 days, net 30 days, although in
the case of contracts for a considerable periodical supply of seamless cylinders the net terms
are increased to 60 days. Sheets and tin mill
products, including black sheets and tin plate,
are sold on terms of 2 per cent 10 days, net 30
days. These terms have been in effect for 12
to 15 years, prior terms having been respectively 2 per cent 10 days, net 60 days and 1 per
cent 10 days, net 30 days.
As has been indicated above, terms in general have been in effect for a considerable
number of years and substantial uniformity in
terms now exists. Prior to 1900, which aate
may be taken as the beginning of the movement towards consolidation in the industry,
terms were considerably more irregular and
were often adapted to meet the special needs
of the customer, extended terms, such as from
4 to 8 months, with correspondingly high cash
discounts, being frequently employed for certain classes of products.
It may be stated broadly that the cash discount is greater for the more highly finished
products, which are sold both in smaller lots
and to different classes of purchasers than are
the semifinished products. It is stated, moreover, that the commodities bearing only a onehalf per cent discount are sold on a close
margin.
FEBRUARY, 1920.
FEDERAL RESERVE BULLETIN.
COPPER, LEAD, AND ZINC.
For the present purpose the distinguishing
characteristic of the markets for the nonferrous
metals in their primary forms may be considered to be the absence of standardization, both
in marketing practice * and in terms. Strictly
speaking, for these metals there are no " regular" terms, such as prevail in many other lines.
Moreover, a large speculative interest has
always existed in copper and in zinc, in particular in the former. In lead, on the other hand,
there is relative concentration of production.
The producing companies are only 12 in number, one of them produces 35 per cent or more
of the total output, and "its policy is to conduct
a business made stable by maintaining regular
customers and prices as nearly constant as conditions permit." It is stated that only 5 per
cent of pig lead finds its way into the hands of
jobbers for resale. In copper and zinc, however, the percentage so handled is much greater.
Recent estimates place the figure for copper for
1919 at somewhere around 20 per cent of the
total output, and this is stated to have been
larger than normal. A very much larger percentage of the output of zinc, estimated at from
50 to 60 per cent, passes through the hands of
dealers. The proportion varies considerably
from time to time. It is a well-known market
fact that the copper producers have recently
been limiting strictly the amount sold to jobbers, in order, it is said, to avoid a repetition of
the situation some months ago when the jobbing interests to whom sales had been freely
made dominated the market. The general
practice varies among the different producers,
some of them pursuing the same policy as the
lead producers. In the matter of terms, the
producers of the nonferrous metals, while
preferring cash against documents, endeavor
to meet the wishes of their customers, and as a
rule are willing to sell on the terms preferred
by the latter, provided payment is made
within 30 days from date of shipment.
Producers7 terms on ingot copper vary, instances being cash against documents, cash on
delivery, sight or arrival draft, 10, 20, or 30 day
draft, and up to 30 days' open account. Formerly 30 days from arrival was also given; but
this has recently been changed to 10 days from
date of shipment if made from an eastern refinery and 30 days if made from a far western
refinery. This eliminates the financing by the
1
Various details on this point have been obtained from Aldrich and
Schmuckler. Prices of Ferroalloys, Nonferrous and Rare Metals, War
Industries Board Price Bulletin, No. 34.
149
producer required under the earlier terms, also
disputes as to what constitutes date of arrival,
which were frequent. Prior to the war a discount of one-half per cent 10 days was usually
granted large consumers, net terms being 30
days, but this was largely eliminated during the
war, copper being sold chiefly on a cash basis.
Producers are again allowing large consumers
30-day terms.
Pig lead is sold by the larger producers on
terms of cash on arrival at the buyer's plant, a
sight draft with bill of lading attached being
used in most cases with instructions to the bank
to hold the draft awaiting the arrival of the
shipment. A small percentage of sales call for
cash in 10 or 15 days from date of shipment.
The larger producers' terms on slab zinc are
similar to those allowed on lead. Sales of
prime western zinc during the early part of the
war, when scarcity existed, were almost wholly
on sight draft. Cash on arrival or sight draft
are, however, by no means exclusively employed. Terms in some cases vary from net 10
days to net 30 days from date of shipment, according to length of time required for delivery.
It is stated that since the middle of 1917, when
prime western zinc has been in free supply,
leading consumers have been able to reestablish
such terms. It may be noted that they by no
means always involve a longer period than in
the case of cash on arrival terms, as shipments
from western centers to eastern consuming
works are frequently three, four, or five weeks in
transit. High-grade zinc, which is used extensively to make the better quality brass and for
rolling sheet, largely carries a cash discount of
one-half per cent for payment within 10 days
from date of shipment or in some cases with
sight or 10-day draft. In special cases the
terms to purchasers of high standing are made
one-half per cent 10 days, net 30 days. There
has recently been a movement looking to the
formulation of standard terms for the industry.
Jobbers7 terms on copper and zinc are stated
to be largely one-half per cent 10 days, net 30
days, although on carload lots in competition
with producers net cash on arrival may be
specified. Pig lead is sold largely on terms of
net 30 days.
Turning now to manufactures of the nonferrous metals. Terms on brass and copper
products, including rods, wire, sheet and tubing, are largely 1 per cent 10 days, net 30 days,
the discount in some cases being given for semimonthly settlements by the 5th and 20th.
These terms have been in effect for many
years. In certain cases the discount was re-
150
FEDERAL RESERVE BULLETIN.
duced during the war to one-half per cent and
in some cases later eliminated, although subsequently in general restored to the former figure
of 1 per cent.
Trade sheet lead and lead pipe carry terms
of 2 per cent 10 days, net 30 days, bar lead
and solder carry terms of net 30 days, and
chemical sheet lead and chemical lead pipe
carry terms of 1 per cent 10 days, net 30 days.
The first two classes of items are sold largely
to jobbers of plumbing supplies and to plumbers, the last to the chemical trade. The difference in the discount is accounted for by the
difference in size and credit standing of purchaser. While a 1 per cent discount is sufficient inducement to the large concerns of firstclass credit standing in the chemical trade to
generally discount their purchases, it is insufficient in the case of jobbers of plumbing supplies and plumbers.
Rolled zinc products are regularly sold on a
cash basis, sight draft against bill of lading
being used in many cases. A cash discount oi
3 per cent is allowed. These terms have been
in effect for many years. By far the larger
part of these commodities is sold to jobbers as
against consumers, although the proportion
varies considerably from month to month.
HARDWARE.
The hardware field is exceedingly complex.
A large number of items are included under
the term, and the limits are vague and ill-defined at points, merging into other lines.
Hardware distributors have extended their activities to include related lines as well, automobile accessories affording the latest instance,
while some of the regular hardware items are
handled by other merchants also. Within the
recognized limits of the field itself, there is no
standard classification of items into a number
of types. In addition, the lines produced by
the individual manufacturers differ greatly.
In order to clarify the discussion as far as possible, several of the classifications in actual use
will be presented. The war service committee
of the American Hardware Manufacturers' Association had the following sections:
Wire goods and heavy hardware.
Builders' hardware, metal ware, small castings and
stampings.
Cutlery.
Hardware tools.
Agricultural tools.
General hardware.
FBBBUABT, 1920.
The internal organization of the individual
hardware jobber, however, by no means follows the same lines. Following are the list of
departments of several hardware jobbers; the
number of which, of course, will vary with the
size of the house.
House No. 1—
Builders' hardware.
Mechanics' tools.
Brass goods, valves, pipe fittings.
Steel bars, plates, sheets, light rails, etc.
Wrought pipe and boiler tubes.
Cutlery, fishing tackle, sporting goods, etc.
Fire arms and ammunition.
Nails, horseshoes, barbed wire, etc.
Household goods, enameled, agate and tin ware, etc.
House No. 2—
Auto accessories.
Builders' hardware.
Cutlery, watches, and clocks.
Electrical supplies.
Heating and plumbing.
Heavy hardware.
Mill; logging and agricultural.
Mining and railway.
Paint and glass.
Saddlery and shoe findings.
Sporting goods.
Stoves and ranges.
Tents and awnings.
Tools.
Toys and novelties.
In the present discussion we shall consider
first the general line of shelf hardware and
then treat in succession the metals and heavy
hardware, builders' hardware, and sporting
goods. Automobile accessories and electrical
supplies, a smaller portion of which products
is distributed through the hardware jobbers
than in the case of the lines just mentioned,
will be treated separately later. The regular
distributive chain in the hardware industry
comprises manufacturer, jobber, retailer, and
consumer, but it is stated that in the Central
West and on the Pacific coast a greater proportion of goods is sold by jobbers to manufacturing and other consumers not individuals
than in the other sections.
Activities of the National Hardware Association with respect to terms of sale have dealt
both with the purchases and with the sales of
hardware jobbers. Although in the 90's the
American Hardware Manufacturers' Association gave much consideration to net 30-day
terms, and some manufacturers adopted these
terms, the strenuous objection on the part
of the wholesalers resulted in the abandonment of the attempt to establish these terms,
and the recognized terms upon which manufacturers sold continued for many years to be
FEBRUARY, 1920.
FEDEBAL, RESERVE BULLETIN.
2 per cent 10 days, net 60 days, The officers
of the jobbers' association have always displayed great interest in the maintenance of the
discount, and have at once communicated with
manufacturers who have announced a decrease
in or discontinuance of the same. The reasons
for the jobber's advocacy of the cash discount,
and the advantages claimed for it, are substantially similar to those put forward by the
National Wholesale Grocers' Association, which
are given in the December, 1919, issue of the
FEDERAL RESERVE BULLETIN. It is generally
held that the discount is the source of a considerable part of the net profits of the jobber,
which are usually estimated as from 2\ to 3$
per cent of gross sales. The success of the
work may be judged from the statement in the
1910 report of the secretary-treasurer that
" almost all manufacturers now admit that the
usual and ordinary terms are 2 per cent 10
days, net 60 days." From this time on a
period of relative quiescence is noted, and the
terms of 2 per cent 10 days, net 60 days, became established as the regular hardware terms.
For several years correspondence with manufacturers was relatively small and the work was
confined largely to representing to members
the undesirabihty of wrongfully deducting the
discount when not
paying within the 10-day
discount period.1 This period, however, was
not of very long duration. A rather widespread movement among manufacturers became manifest several years later, in particular
after the outbreak of the war, to either decrease
or eliminate the discount. This may be ascribed both to the increase which occurred in
the price of the various hardware articles, which
accompanied the increase in the cost of production, and to the existence of a seller's market.
Strong opposition was aroused among the jobbers, the more so as their cost of doing business had been steadily mounting. At the 1916
convention of the latter's association the resolution of 1899, favoring a cash discount of 2 per
cent for payment within 10 days, was again
read, and a similar resolution was passed. Both
in 1916 and in the succeeding year the
question was of prime importance. In the
latter year a committee of the jobbers was
151
appointed to present the matter to the manufacturers' convention. At the same time
jobbers were again urged to respect the discount period. With the passing of war conditions the matter has gradually declined in
importance, and in 1918 it was stated that
"many of the manufacturers who changed
their terms during the past year reinstated the
discount." The above statement, however,
should by no means be construed as indicating
that the majority of manufacturers deviated
from the regular terms. This occurred more
largely in lines where the bulk of the merchandise has been distributed through other than
hardware channels, in particular where the bulk
of the manufacturers' sales are to large industrial consumers. A prominent illustration is
afforded in the case of bolts and nuts, as was
mentioned above, also by explosives, where
terms have recently been changed to net 10
days. Several reliable estimates agree that at
the present time about 80 per cent of hardware
items are sold by manufacturers upon the
regular terms.
To turn now to specific lines. It should be
noted that it makes little difference to the
jobber whether net terms are 30 days or 60
days, inasmuch as he generally discounts his
purchases. This, however, appears to be the
only change which has been generally adopted
in any of the distinctly hardware lines.
Although the majority oi manufacturers of
mechanics' hand tools extend 60 days, a considerable number give only 30 days. The
latter terms are used also in a few cases for
farriers' tools, while they are in general use for
heating appliances for mechanical purposes,
such as gasoline torches, etc. The terms of
manufacturers of cutlery vary from 30 days
to 60 days on sales to wholesalers, although
60 days is generally given to retailers, or on
sales to distant territory, such as the Pacific
coast. A very small percentage is also stated
to be sold on an absolutely net basis without
cash discount. Certain seasonable goods, such
as carvers' and high-priced table knives, sold in
the spring for early summer delivery, bear
September 1 or October 1 dating. Prior to the
war the hardware jobbers in the South and
i Some evidence as to promptness with which collections are made by Southwest obtained datings. Wire goods,
hardware manufacturers is afforded by the following data contained in a springs, and fence bear terms of 2 per cent 10
paper advocating the use of trade acceptances, read by Mr. R. H. Treman
at the 1916 convention of the National Hardware Association, and repro- days, net 30 days, whereas 60 days is given on
duced on pages 23-24 of the pamphlet entitled Trade Acceptances. What wire cloth and poultry netting in certain cases.
They Are and How They Are Used, prepared for the American Acceptance Council and published October 1. 1919: "The reports show that The trade acceptance is used to some extent. In
when the bills are discounted, instead of being paid in 10 days they have
averaged 15 days, and for those who take the option of the 60-day credit certain cases net terms are 60 days to retailers
period, the average payment is in from 75 to 80 days, and 10 per cent or with a trade acceptance in place of 30 days on
more of customers take 90 days or more."
152
FEDERAL RESERVE BULLETIN.
open account, while in other cases 30 and more
rarely 60 and 90 day acceptances are employed
in connection with contract shipments to industrial consumers. Terms given on saws
vary, instances of net 30 days, 2 per cent 10
days, net 30 days and 2 per cent 10 days net
60 days being noted. In one case 60 days is
given instead of 30 days to southern jobbers.
These terms apply on sales of hand and circular
saws which fall in the mill goods category as
well as on sales of crosscut and hand saws. In
the chain industry, terms in the welded, weldless and hardware branches are 2 per cent 10
days net 30 days, while for transmission and
conveying chain terms are net 30 days, no discount being given.
Most manufacturers of seasonal goods have
continued for many years the policy of offering
to the jobbers a dating on shipments on condition that they would permit the manufacturer
to ship the goods at his convenience. In the
case of agricultural hand tools, while the regular hardware terms prevail, invoices are dated
March 1 for hay, manure, grain, and spading
forks, garden, field, and wheel hoes, garden
rakes, and garden cultivators. Some years
ago April 1 dating was given on southern
hoes, but this has been discontinued. Corn
hooks and knives bear September 1 dating
and hay knives November 1 dating. Allowance for prepayment is at the rate of from
6 to 12 per cent per annum. Certain household goods, such as water coolers, oil cook
stoves, etc., and oil and wood heaters, stovepipe, etc., known respectively as spring and
fall items, especially where they are of a bulky
nature, bear March 1 and September 1 dating.
In this industry a recent tendency toward
shortening of the net period from 60 days to
30 days is reported. Sales by manufacturers
of furnaces, stoves and ranges in general bear
a September 1 dating, reduced some years ago
from October 1, and the spring dating, usually
April 1, which was formerly customary, was
also abolished several years ago. Net terms
have largely been reduced from 60 days to 30
days, although 60 days' trade acceptance is
employed in certain cases where net terms on
open account are 30 days. About 10 years ago
the discount was reduced from 5 per cent 30
days to 2 per cent 30 days and later to 2 per
cent 10 days. It should be noted that manufacturers in this line largely sell direct to retailers, it being estimated that not over 20 per
cent of the product is handled through jobbers.
Jobbers largely give the usual season dating in
FEBRUARY,
1920.
this line, likewise on wire cloth and screen
doors.
The regular terms of sale of hardware jobbers
have been the same as those upon which their
purchases are made, namely, 2 per cent 10
days, net 60 days, but within the past year
there has been a movement to reduce the net
period to 30 days. The National Hardware
Association has considered the question at
various times. Parallel with its work of
urging all jobbers to respect the cash discount
period, similar work was undertaken designed
to bring the matter to the attention of the
retailer. In 1911 a special committee on cash
discount was appointed with this particular
function. From about 1912 on emphasis
began to be placed upon the 2 per cent as a
premium for prepayment, rather than as a
discount for cash. The expression, which
however dates back at least to 1899, has also
been employed in the subsequent dealings with
the manufacturers. The report of the cash
discount committee in 1912 stated that certain
of the markets were badly demoralized on the
question of the enforcement of the cash discount period. Mr. R. H. Treman in the
address delivered in 1916 to which reference
was made above gives the following data:
" As to jobbers (wholesale distributors), the reports show
that throughout the country generally from 40 to 50 per
cent of buyers discount their bills within 15 days after
purchase, while of those who take the 60-day option from
25 to 30 per cent pay " promptly,' or within one month
following the 60-day maturity. Of the remaining 20 per
cent, only about one-half pay in the period between three
and four months after purchase while the other half pay
in from four to six months, or never, notwithstanding that
the terms of sale agreed upon were for a credit of only 60
days."
Variation was noted according to locality,
jobbers on the Pacific coast having 50 per
cent of buyers discount their bills, 20 per cent
pay in 75 days, and 30 per cent in from three
to four months. In the rural districts the
majority of retailers did not discount their
bills, and averaged 90 days in place of the 60
days called for by the regular terms. In
some cases interest-bearing notes for longer
periods were taken by wholesalers. In connection with the respect of the discount period
by retailers, attention was directed in 1916 to
the fact that the order blank prepared by the
retailers' national association contained a
clause calling for 2 per cent on receipt of goods.
The other problem confronting the jobber in
connection with the cash discount has been
the question of proximo terms. A growing
FEBRUARY, 1920.
FEDERAL RESERVE BULLETIN.
tendency in this direction has been evident,
although there is no uniformity of practice
with respect to the matter. In certain cases
semimonthly settlement has been permitted,
while in some cases it has been confined to
city sales. In other sections, however, for
example in Iowa, proximo terms are not
favored. It will be evident from the data
given above that the question of the enforcement of the net terms has been of equal importance with the enforcement of the cash discount period. As a practical means to the
former end, the collection of interest on overdue
accounts has often been advocated, in particular by the cash discount committee in 1911
and 1914. It should be noted that in certain
sections at least considerable improvement
in collections has been observed during the
past several years, likewise an increase in the
percentage of those taking the cash discount.
Some interest has been manifested in the
trade acceptance during the past few years,
and the National Hardware Association has
distributed considerable literature. As is the
case in some other distributive lines, however,
no widespread adoption of the acceptance is
found, although it was stated in 1918 that
quite a few houses, in particular in the South,
had put into effect terms of 2 per cent 10 days,
net 30 days or 60-day trade acceptance, and
that "those who had tried acceptances were
very much pleased with them." The matter
had previously been discussed at the meetings
of the Southern and Texas Associations, which
adopted the terms mentioned. The general
question of length of terms of sale has been discussed at various conventions of the National
Association. In 1918 a resolution was introduced favoring uniform "terms of 2 per cent
premium if cash is received within 10 days,
or 1 per cent if received in 30 days, or 1 per
cent if received befoie the 10th of the month
for aggregate invoices of previous month, or
net 60-day trade acceptance or bank
note for
the previous month's aggregate/7 and in the
discussion which followed the suggestion was
made that terms should be adopted not
only by the State Associations, but by the
National Association as well. It is stated
that during the year 1919 there was a tendency
to shorten the net terms from 60 days to 30
days.
To consider briefly now the actual terms in
use in the several sections of the country.
General employment of other than the regular
terms is always found in certain markets.
At the present time a 2 per cent discount is reg-
153
ularly given, even on items upon which the
manufacturer allows only a lesser discount,
with the exception, of course, of distinct lines,
such as metals and heavy hardware. In certain sections where the net terms are 60 days,
some jobbers have adopted 30 days; for example, in New York State and eastern Pennsylvania. In 1918 it was stated that terms in
Texas, outside of the Dallas district, had been
reduced to 30 days. Recent advices, however,
state that only about one-third of the houses in
the State, in particular those stocking principally heavy goods, at the present time sell on
terms other than the regular 2 per cent 10 days,
net 60 days. There was also stated to be a general tendency to shorten terms in the South, but
that it was hindered by the fact that the large
middle western centers, such as Chicago, St.
Louis, and Louisville, continued on the 60-day
basis. At the present time the majority of the
southern jobbers still use the latter terms,
which are customary also in various other large
eastern and middle western markets, such as
Cleveland, Pittsburgh, Detroit, Duluth, Kansas City, Omaha, Sioux City, Des Moines, and
Denver, and on the Pacific coast.
Distribution of iron and steel products and
of heavy hardware is accomplished through one
of three channels. There are exclusive metal
houses, houses which deal in heavy hardware
in addition to iron and steel, and hardware
jobbers who have one department of their business dealing in these items. It has been stated
that in the East the metal business in general
is handled apart from hardware, whereas in
other sections it is combined with hardware
jobbing. Among the items embraced under
the term heavy hardware, including bolts and
nuts, horseshoes, nails, heavy tools, such as
anvils, vises, and hammers, etc., the more
staple have long been known as relatively unprofitable items, the margin of profit being
small, but turnover heavy, in the case of nails,
estimated in 1911 at from 15 to 20 times a
year. The terms on which the general class of
items is sold differ according to the type of
dealer. Terms on the several classes of rolledsteel products in large measure vary according
to the manufacturer's terms. There has been
a tendency for jobbers handling hardware, however, to extend hardware terms also on iron and
steel. On the other hand, with the tendency
of manufacturers during the past several years
to decrease the discount allowed, hardware jobbers, a considerable proportion of whose business is in these lines, have shown a tendency
to decrease the discount or to shorten terms
154
FEDERAL RESERVE BULLETIN.
on them, while continuing the regular terms
on the regular hardware items. Thus in the
South in a considerable number of cases net
terms are 30 days, with either a 1 or 2 per cent
discount for payment within 10 days. Houses
which do only a small amount of such business,
however, continue the regular hardware terms
on these lines.
Builders' hardware is generally considered
as a separate line. Owing to the technical
knowledge required to properly handle the
somewhat intricate details of the business all
hardware dealers do not handle it, and a
special department is created by the wholesaler, selling to retailers, contractors, and consumers. In the past manufacturers' terms
were largely 2 per cent 10 days, net 60 days,
but there has been a tendency lately toward
reduction of the net terms to 30 days. Builders' hardware in some degree is seasonable, in
that consumers make larger purchases in the
spring and fall, but datings are rare. Jobbers
usually sell the item on tne general hardware
terms prevalent in the territory. In New
York City and vicinity, builders' hardware is
sold by the manufacturers, most of whom
have branch offices, direct to the contractor
or consumer. In exceptional cases this may
also apply when New York contractors erect
large structures elsewhere. It is the custom
to require payment of 85 per cent of each
month's deliveries by the 10th of the following month and the remaining 15 per cent in
30 days after the completion of the building
operation.
Sporting goods are being handled to an
increasing extent through the hardware jobbers. Years ago there were a considerable
number of special jobbers confining their activities to the line, but at the present time
there are stated to be less than half a dozen
such houses in existence. While in general
such goods are distributed through the jobber,
some manufacturers sell direct to large department stores and others through their own
branch stores, and direct to the retailer. Certain manufacturers note a tendency toward
the last-named method. The general terms,
given both by manufacturers and by jobbers,
are the same as in the case of hardware,
namely, 2 per cent 10 days, net 60 days.
During the war there has been a tendency ior
the manufacturers of certain lines, such as
firearms and ammunition, to decrease the net
period to 30 days. In certain cases proximo
terms are given by jobbers, though this is not
general. The business is distinctly seasonable.
FEBRUABY, 1920.
In this connection there are several general
branches, each from some manufacturers receiving a distinctive dating, such asfishingtackle,
baseball and general athletic goods, and firearms
and ammunition. As most of the branches of
sporting goods and athletic goods are termed
seasonable goods, it is customary not only for
the manufacturer but in some cases also for
the jobber to extend seasonable datings, and
this custom is quite common. Manufacturers
of fishing tackle in general extend to jobbers
April 1 dating, although this has been withdrawn by many since the opening of the war.
Jobbers in turn give the same dating in the
Eastern States, while in the North Central
States, the dating is frequently May 1 or sometimes later. On base ball and general athletic
goods coming into active season about April 1,
the majority of manufacturers extend April 1
dating, and likewise with jobbers. Manufacturers of firearms and ammunition generally
extend October 1 dating, this being an average
of the various opening seasons for game, and
the same dating is given by jobbers. At times
in the past jobbers have protested against the
application of the dating to loaded shells employed for trap shooting in July and August,
and in another connection a maximum dating
of September 1 has been favored.
Summarizing, where the cash discount is
taken, it can be said that 2 per cent is taken
and allowed, although a considerable effort is
being made on the part of some manufacturers
to reduce the cash discount to 1 per cent, or
to sell on net terms of 10 or 30 days. Where
credit is taken, the generally accepted terms
are 60 days. It is stated that there is a growing tendency in many lines where credit is
given to require paper to be given instead of
the open book account with its indeterminate
date of payment.
MILL SUPPLIES AND " MACHINERY."
Because of the unity of dealers' interest,
these two classes of goods are generally considered together. The title is not, however,
strictly accurate, inasmuch as the term " machinery" refers in this connection rather to
machine tools, that is, machines for doing work
with cutting tools or utilizing minor tools in
fashioning the wood and iron parts of machinery, performing the five operations of planing,
boring, turning, milling, and slotting.
Mill supplies, exclusive of the metal lines, on
the whole, carry a cash discount of 2 per cent
when sold by manufacturers, with net terms
FBBEUARY, 1920.
FEDERAL RESERVE BULLETIN.
of 30 or 60 days. Many exceptions are however found, and several dealers report that
during the last few years quite a few manufacturers eliminated the discount or reduced it
to 1 per cent.
Machine tools, on the other hand, are sold
by many of the large manufacturers on terms
of net 30 days. J t is stated from several
sources that discounts given are largely by the
newer and smaller manufacturers, possessing
less financial strength and therefore less desirous of having capital tied up in receivables,
but who after several years discontinue the
same. Quite a number of well-established
manufacturers, however, are stated to allow a
cash discount of 1 per cent, and in some cases
2 per cent is given. It is noted that the former
discount is given in certain cases on lighter
tools, the heavier carrying no discount. It is
estimated that of the standard line of machine
tools possibly 80 to 85 per cent is sold through
dealers and the balance by manufacturers.
Direct sales occur more largely in the case of
new tools or devices, the manufacturer introducing the same, and then getting the dealers
to stock the item. An increasing tendency
toward the distribution of both mill supplies
and tools through dealers is noted.
There is stated to be an increasing tendency
for dealers to handle both classes of goods. It
is estimated that perhaps 75 per cent of distributors start as distributors of mil] supplies
only, later adding lines of machine tools, one
at a time. Occasionally, however, machinetool distributors start without any supply lines,
and these are rarely added. Ninety per cent
of mill-supply houses in the South handle also
machinery. In general, mill supplies and machinery alone are handled, but in the West and
in the less-developed sections other lines, such
as agricultural machinery, are also handled to
a greater or lesser extent. In some cases the
mill-supply business is combined with hardware joobing. Separate departments usually
handle mill supplies and machinery. In the
handling of the latter, mechanical knowledge
is required, and there are therefore separate
purchasing agents for both classes, although
90 per cent of the houses buying machinery
also buy supplies.
In general, the terms of dealers conform to
those upon which they are sold by manufacttirers. Machine tools thus generally bear
terms of net 30 days, in certain cases with cash
discounts of 1 or 2 per cent for payment
within 10 days. Mill supplies generally carry
terms of 2 per cent 10 days, net 30 days or 60
155
days, although on certain items, mostly the
metal lines, and items such as bolts, nuts,
rivets, and some kinds of screws, the discount
is only 1 per cent, and on some other items,
such as iron and steel bars, no discount is given
in certain cases. Proximo terms are used in
some cases, likewise the trade acceptance.
In certain cases additional time is given for
trade acceptance settlement, terms, for example, being net 30 days or 45 days trade acceptance for machine tools. In the South, however, dealers' terms are generally 2 per cent
10 days, net 30 days or 60 days, on sales of
both supplies and machinery, these terms
applying to approximately 90 per cent of the
dealers7 total sales. The difference in terms
between machine tools and mill supplies has
been accounted for by differences in financial
strength between the manufacturers of the
two classes of goods, and also by the fact that
many of the great variety of dealers' customers
are small and with uncertain credit ratings.
On the larger items, such as machine tools,
dealers frequently cover their sales with some
form of chattel mortgage or method whereby
title is retained. In such cases an initial cash
payment, such as one-third or one-half, may
be required with order or upon receipt of bill
of lading, and the balance covered by interestbearing notes maturing monthly for three or
four months. In some cases six months' time
is given.
Collections of dealers as indicated by the
average number of days' business represented
by accounts receivable, have always been considerably longer than the net period for which
terms are nominally made. The average is
generally estimated at about 45 days, while
certain houses aim to run as close to 30 days
as possible, in some cases accounts are carried
up to three months, the latter occurring, for
example, in the case of builders' busmess.
Large corporations are stated to be no
prompter than small firms, due to the fact
that "large bodies move slowly." The percentage of dealers' customers who discount
their purchases is relatively small. While the
figure, of course, will vary with the character
of business of the house, information received
from several houses indicates that slightly over
one-third discount, approximately one-third
pay when due, and the remainder run past due.
Dealers have tended to shorten the net terms
actually tak^n by insisting upon stricter observance of the nominal terms, and certain
houses show a considerable decrease in the
number of days' business outstanding. It is
156
FEDEBA1, BESEEVE BULLETIN.
interesting to observe that while " there have
been a good many suggestions from dealers to
manufacturers looking toward the reintroduction of7 the cash discount in the machine-tool
trade/ there has been no active effort comparable to that put forth by jobbers in other
lines, such as hardware. It has been suggested
that this is due to the fact that dealers in
general work very closely with their principals,
the manufacturers. It may be observed that
dealers as a rule sell machine tools from samples
carried in warehouse, which mill supplies are
stocked by them.
MACHINERY.
Power machinery, including engines and boilers, and hoisting and conveying machinery
have as regular terms net 30 days. However,
exception is made to such terms in two cases—
where the machinery is to be erected or where
the amount of the order is large. In some
cases payment of from 50 to 80 per cent of the
total amount is specified upon shipment of the
material. Subsequent payments are only one,
two, or three in number, and a time limit, such
as three or four months, is fixed within which
final payment shall be made. Thus, for example, it may be specified that 60 per cent is
due upon shipment, 20 per cent in 30 days
thereafter, and 20 per cent when the material
has been erected. In other cases an initial
payment upon signing of the order may be
specified, though sometimes omitted, then
monthly payments, as the work progresses, for
70 per cent or more of the value of goods
shipped and labor performed during a month,
and a final payment of 10 per cent or more
upon the erection of the machinery. In some
cases the payments are required for the work
done in the shop and the final payment is due
upon the shipment of the machinery. Certain
manufacturers vary the payment plan according to the size of the order. Thus, for orders
under $5,000, not calling for erection, terms of
net 30 days may be specified; for orders of
from $5,000 to $20,000 not calling for erection,
and orders up to $20,000 calling for erection,
payment upon shipment may be required, with
balance due in 30 days and upon erection;
while for contracts of over $20,000, whether
calling for erection or not, progressive monthly
payments may be required, with the balance
due upon completion of the work.
Textile machinery is almost entirely sold direct by the manufacturer to the user. The
1
FEBRUARY, 1920.
regular terms on the domestic product are net
30 days from date of invoice. A very small
proportion of sales are made upon terms of net
60 days, and very infrequently a cash discount
of 2 per cent is given tor payment within 10
days. A study made in 1916 indicates that in
some cases
cotton-mill stock and bonds were
accepted.1 Silk machinery however, is sold to
some extent on a time basis, estimates placing
the total so sold at approximately one-fourth to
one-third of the output. Provision is made in
such cases for the payment of from one-third
to one-half cash on delivery, and the balance
is covered by notes due in 3, 6, 9, or 12 months.
These notes are secured by a lease contract.
Material use is made of the plan by new concerns which are usually short of capital, also in
some cases for financially weak purchasers of
other classes of textile machinery.
Printing machinery is also sold direct by the
manufacturer to the user. Either cash or deferred payment is specified. In the latter case
an initial cash payment of about 25 per cent
is required, and the balance is due within 24
months, being represented by interest-bearing
notes maturing monthly and secured by a lien
on the machinery. In some cases a discount
of 5 per cent is given for cash settlement on
erection of the machinery.
BAILWAY EQUIPMENT.
The regular terms on which domestic sales
of locomotives are made are net 30 days from
date of delivery. A leading manufacturer
states that it is in most cases f. o. b. works, and
that it refers only occasionally to time from
acceptance when dealing with political subdivisions where the statutes specifically require
formal acceptance prior to payment for the
goods. Where the purchaser has insufficient
funds, conditional sales or lease agreements
are made. Security is afforded by a lien on
the equipment. Such sales occur in particular to contractors or very small railroads, and
in normal times only a very small percentage
of the business is done on such terms. Whfle
the terms of payment vary greatly, provision
is generally made for an initial payment ranging from 20 to 33 J per cent. Payment of the
balance in equal monthly or quarterly installments is specified, the total period in general
running not over two or three years, although
in some cases up to five years. The payments
are evidenced by notes drawing interest at 6
per cent. No general changes in terms during
the past decade are noted, other than a more
Bureau of Foreign and Domestic Commerce, Misc. Series No. 34.
FEBRUABY, 1920.
FEDEBAL RESERVE BULLETIN.
frequent formation of equipment trusts. In
such cases either the regular terms prevail or
cash upon completion or acceptance by the
railroad is specified.
Usual terms in car-builder's contracts, covering all classes of freight and passenger cars,
call for cash on delivery, that is, for invoices
accompanied by inspector's certificate or receipt, or bill of lading of railroad first handling
the cars, in lots of 25, 50, or 100 cars. These
terms prevail also in cases where equipment
trusts are employed, as has been done in recent
years by many of the larger railroads. Occasional payment out of current funds by a few
railroads with substantial credit is noted, in
which case net 30 days from delivery has been
specified. In a few cases short-time notes
with interest have been taken where the
amount involved was not very large. While
each case is treated individually, as a general
rule a cash payment of approximately 25 per
cent is required with the order, and the balance is represented by notes, part of which are
due upon the delivery of the cars, and the remainder spread evenly over about one year.
The cars remain the property of the builder
until paid for.
Terms in the case of sales of street railway,
interurban, and subway cars are largely adapted
to the particular case in question. While
contracts specify cash on shipment, meaning
sight draft attached to bill of lading, this is
not rigidly adhered to. Ordinarily, however,
payment in three equal installments, the last
due at the close of three to four months, has
represented the maximum terms. Deferred
payments bear interest.
SHIPBUILDING.
Terms employed in the case of ship construction for private domestic purchasers provide
for an initial payment upon execution of the
contract, usually for 5, 10, or 15 per cent and in
rare cases 20 per cent of the purchase price.
Subsequent payments of equal size are required
when certain steps in the building of the vessel
have been completed, such as laying of the
keel, plating, launching, etc. The number of
payments varies with the type of vessel, and
estimated time required for completion, but is
stated to be approximately 10 or 12. The final
installment, varying from 5 to 10 per cent, is
generally due upon completion and delivery of
the vessel. Prior to 1917 it is reported that it
was the general practice in certain cases, such
as for large bulk cargo ships, to accept one-half
of the purchase price in first serial bonds,
maturing in from 1 to 10 years.
157
Interest Rates on Bank Balances.
A conference of representatives of clearing
houses from various parts of the country was
held at Washington January 6 for the purpose
of discussing the relation of the rates of interest paid on deposits to the Federal Reserve
Bank discount rates. At the conclusion of its
session the following resolution was adopted:
Whereas the Federal Reserve Board has invited the
representatives of the clearing houses from various parts
of the country, here assembled, to attend a conference in
regard to the interest rates paid on deposits throughout
the country, and Governor Harding, of the Federal Reserve
Board, has outlined very clearly the present financial
situation and the probability of advances in rates by the
Federal Reserve Banks, and
Whereas it is the opinion of the conference that the
present method in several of the larger centers of the
country of regulating interest on bank balances, by a sliding scale, based upon the 90-day Federal Reserve Bank
discount rate, is not wholly satisfactory, and
Whereas until more satisfactory regulations are adopted
governing the rates of interest to* be paid on balances it is
most important that existing regulations should not be
abrogated, and
Whereas it is the opinion of this conference that the
Federal Reserve Banks should always be free to establish
their rates of discount without reference to any clearinghouse regulations as to the payment of interest, and
Whereas it is the opinion of this conference that the
payment of high rates of interest on bank or commercial
balances is unsound and is bad banking, and that every
effort should be made to avoid such a practice;
Now, therefore, in order to make progress along safe and
conservative lines, it is requested that the Federal Reserve Board invite the clearing houses in each Federal
Reserve city to select three representatives from its Federal Reserve district to attend a meeting to be held on or
about January 23, 1920, at Chicago, 111., to consider this
whole question of interest on balances in order that some
basis may be agreed upon that will be mutually satisfactory, conducive to conservative banking, and benefit the
entire business and banking community.
Pursuant to the request contained in the
foregoing resolution the Federal Reserve Board
instructed the chairmen of the several Federal
Reserve Banks to invite the clearing house in
each Federal Reserve city to select three representatives from its Federal Reserve district
to attend such a meeting to be held in Chicago
on January 23. At this meeting the following
resolution was adopted:
Whereas the Federal Reserve Board has invited representatives of the Federal Reserve districts to this conference to consider the interest rates paid on bank and trust
company balances; and
Whereas it is the opinion of this conference that the
Federal Reserve Board should always be free to establish
its rates of discount without reference to any clearinghouse regulations as to the payment of interest; and
Whereas the Federal Reserve Board, through Governor
Harding, has expressed its approval of the action of the
New York Clearing House in adopting a rate of 2J per cent
as its maximum rate;
Now, therefore, be it resolved, That we recommend to the
banks and trust companies in the various Federal Reserve
districts that no rate in excess of 2\ per cent be paid on net
and available daily balances of banks and trust companies.
158
Acceptance Liabilities of Member Banks.
In continuation of similar figures printed on
page 852 of the September (1919) BULLETIN
there are given below data of acceptance liabilities of national and other member banks at the
close of 1918 and on selected dates of the calendar year 1919. September 12 figures are
available for national banks only, for the reason
that other member banks were not required to
submit condition reports for that date. Between the close of 1918 and November 17 acceptance liabilities of all member banks increased from $480,624,000 to $565,677,000, or a
little over $85,000,000. During the same
period member banks in New York City increased their acceptance liabilities from
$240,125,000 to $281,976,000, or by $41,851,000; member banks in Boston from $57,581,000
to $70,957,000, or by $13,376,000; and member
banks in Chicago from $44,375,000 to $47,426,000, or by $3,051,000. Considerable increases
in acceptances outstanding are also shown for
the member banks at Baltimore, Cleveland,
San Francisco, New Orleans, and Minneapolis,
while member banks in Philadelphia and St.
Louis report the largest reductions in their acceptance liabilities for the period under review,
as may be seen from the following exhibits:
Acceptance liabilities of national and other member banks.
[In thousands of dollars, i. e., 000 omitted.]
Dec. 31, Mar. 4, June 30, Sept. 12, Nov. 17,
1919.
1918.
1919.
1919.
1919.
National banks:
New York
Boston
Philadelphia
Pittsburgh
Cleveland
Detroit
Cincinnati
Indianapolis
Richmond
Baltimore
Atlanta
New Orleans
Charleston, S. C.
Chicago
St. Louis
Minneapolis
Dallas
San Francisco...
Portland, Oreg..
Seattle
Allother
120,897
44,170
19,995
4,664
8,168
2,700
659
1,718
4,815
1,066
984
2,734
1,505
29,677
11,837
3,374
2,940
9,627
3,323
1,301
28,947
112,762 107,005 128,541
41,723
49,429
57,653
15,418
18,050 22,372
4,290
6,538
5,267
6,651
8,682
7,279
1,629
2,564
3,098
2,494
4,386
3,487
1,510
1,396
2,249
4,430
2,509
3,013
1,638
6,774
2,930
317
365
731
1,982
1,740
1,841
821
1,353
710
21,032 25,283 26,852
11,928
6,889
5,471
1,635
1,763
5,623
1,760
1,325
200
10,613
11,870
17,283
1,710
2,864
2,069
1,582
1,089
1,586
18,592
21,233
18,555
305,101 269,173
Total.
State bank and trust
company members:
New York
119,228 124,485
Buffalo
215
160
Boston
13,411
14,998
Providence
,
784
625
Philadelphia
700
725
Pittsburgh
2,200
2,627
Cleveland
3,622
4,654
Detroit
200
Memphis
700
1,733
Richmond
Baltimore
50
50
Savannah
FEBRUARY, 1920.
FEDEBAL KESERVE BULLETIN.
149,413
56,449
18,683
5,487
9,193
2,633
3,547
2,737
6,780
3,355
995
3,822
1,293
24,199
4,709
9,849
4,510
15,820
3,950
1,584
30,102
272,035 323,226
359,110
126,376
1,082
18,919
244
450
1,750
3,931
1,200
1,180
132,563
1,110
14,508
1,144
750
2,266
5,265
550
1,887
220
25
631
709
Acceptance liabilities of national and other member banks—
Continued.
[In thousands of dollars, i. e., 000 omitted.]
Dec. 31, Mar. 4, June 30, Sept. 12, Nov. 17.
1918.
State bank and trust
company membersContinued.
Atlanta
New Orleans
Chicago
St. Louis
San Francisco
Portland, Oreg
Seattle
. .
Allother
Total
T o t a l national
banks
Total State banks
and trust companies
Grand total
320
6,299
14 698
6,784
1919.
100
4,796
17 435
6,053
1919.
1919.
1919.
675
100
4,932
24 484
5^590
927
480
428
3,222
2,496
2,759
9,617
23 227
6*865
555
996
175
3,485
175,523
182,092
194,551
206,567
305,101
269,173
272,035
175,523
182,092
194,551
206,567
480,624
451,265
466,586
565,677
447
451
323,226
359,110
It will be noted that during the first half of
1919 acceptance liabilities slightly decreased,
the small increases reported for State bank and
trust company members beixig due probably
to the larger number of banks included in later
reports, as the result of new accessions to
membership.
On the corresponding dates the following
amounts of acceptances purchased in the open
market were held by the Federal Reserve Banks:
Dec. 31, 1918
Mar. 4, 1919
June 30, 1919
Sept. 12, 1919
Nov. 17, 1919
$292,196,000
266,176,000
315,993,000
362,005,000
444,253,000
Of the total Federal Reserve Bank holdings
of bills purchased in the open market, all but
a few millions are bank acceptances, while of
the latter about 70 per cent are composed of
member bank acceptances. It is thus possible
to determine approximately the increasing
proportion of member bank acceptances which
during the second part of the year have found
their way into the portfolios of the Federal
Reserve Banks.
During the last two months of the year
this movement was particularly extensive, and
on the last of December the Federal Reserve
Banks held a total of $574,103,000 of paper
purchased in the open market, composed of
$7,734,000 of trade acceptances and
$566,369,000 of bank acceptances. A little
over 70 per cent of the latte^, or $405,339,000,
were member bank acceptances, while the
remainder, or $161,060,000, represented bills
accepted by nonmember State banks and trust
companies, foreign banks and their agencies,
and private banking firms.
FEBKUARY,
1920.
159
FEDERAL RESERVE BULLETIN.
Mich., have consolidated under the title
" Pontiac Commercial & Savings Bank."
State Banks and Trust Companies.
The following list shows the State banks and
WITHDRAWAL.
trust companies which have been admitted
to membership in the Federal Reserve SysThe Peru Trust Co., Peru, Ind., has withtem during the month of January.
One thousand two hundred and six State drawn from membership.
institutions are now members of the system,
having a total capital of $424,775,776, total
Directors of Oklahoma Branch Bank.
surplus of $449,059,518, and total resources of
$9,649,935,391.
Announcement was made on January 29,
1920,
of the appointment of the following
reCapital. Surplus. Total
directors of the Oklahoma City branch of the
sources.
Federal Reserve Bank of Kansas City: Mr.
William Mee, Mr. E. K. Thurmond, Mr. L. H.
District No. 2.
Earhart,
Mr. Dorset Carter, Mr. P. C. Dings.
Bank of Bogota, Bogota, N. J
$50,000 $10,000 $122,959
The
first
two gentlemen have been appointed
District No. 3.
by the Federal Reserve Board, while the last
Penn Counties Trust Co., Allentown, P a . . 300,000 60,000 1,996,924 three are the appointees of the Federal Reserve
District No. 4.
Bank of Kansas City. Mr. William Mee is
5,000
311,538 president of the Security National Bank of
Atwater Savings Bank Co., Atwater, Ohio. 25,000
Oklahoma City, and Mr. E. K. Thurmond, also
District Ao. 6.
of Oklahoma City, is prominently connected
25,000
25,000
415,537
Monroe County Bank, Forsyth,Ga
25,000
2,500
27,500 with banking interests in the State of OklaBank of Ocoee, Ocoee, Fla
homa. Mr. L. H. Earhart, formerly assistant
District No. 7.
cashier of the Federal Reserve Bank of Kansas
Woodlawn Trust & Savings Bank, Chi250,000 100,000 5,111,738 City, has been appointed manager of the
cago, 111
Peoples State Savings Bank, Britton,
branch. Mr. Dorset Carter is an attorney and
25,000
5,000
Mich
378,369
Spring Lake State Bank, Spring Lake,
president of the Coline Oil Co., and Mr. P. C.
25,000
3,500
Mich
296,979
Dings is president of the Guaranty State Bank
Oakland County Savings Bank, Pontiac,
250,000 70,000 3,415,134 of Ardmore, Okla.
Mich
District No. 8.
Jefferson-Gravois Bank of St. Louis, St.
Louis, Mo
South Side Trust Co., St. Louis, Mo
200,000
200,000
70,000 1,719,057
50,000 2,235,934
District No. 9.
Merchants & Miners State Bank, Ironwood, Mich
100,000
10,000
609,071
25,000
40,000
50,000
30,000
1,000
15,000
1,000
2,000
158,444
410,623
428,238
175,947
District No. 11.
Bridgeport State Bank, Bridgeport, Tex.
First Guaranty State Bank, Clifton, Tex..
First State Bank, McGregor, Tex
Citizens State Bank, Valley Mills, Tex....
District No. 12.
Imperial Valley Bank, Brawley, Calif— 77,000 34,665
977,701
Los Nietos Valley Bank, Downey, Calif.. 50,000 15,000
441,937
Kingsburg Bank, Kingsburg, Calif
75,000 30,000 1,044,026
Bank & Trust Co. of Central California,
300,000 100,000 4,694,832
Fresno, Calif
Bank of Santa Maria, Santa Maria, Calif.. 400,000 300,000 5,463,027
Garden City Bank & Trust Co., San Jose,
500,000 595,000 9,571,187
Calif.
50,000 10,000
910,468
Burley State Bank, Burley, Idaho
25,000
30,000
5,000
Athena State Bank, Athena, Oreg
150,323
1,250
First Bank of Reedsport, Reedsport, Oreg. 25,000
50,000 10,000
702,595
Dallas City Bank, Dallas. Oreg
823,539
Puyallup State Bank, Puyallup, Wash... 50,000
Foreign Branches.
The Board has been advised that the following branches of national banks and international and foreign banks, doing business under
agreement with the Federal Reserve Board,
have been opened for business recently:
National City Bank of New York:
Bogota, Colombia.
Barranquilla, Colombia.
Antwerp, Belgium.
Cape Town, South Africa.
Mercantile Bank of the Americas, New York City:
Banco Mercantil Americano de Colombia, Bogota,
Colombia.
Acceptances to 100 Per Cent.
Since the issuance of the January BULLETIN the following bank has been authorized
by the Federal Reserve Board to accept drafts
CONSOLIDATION.
and bills of exchange up to 100 per cent of
The First Commercial Bank and the Pontiac its capital and surplus:
First National Bank, El Paso, Tex.
Savings Bank, member banks of Pontiac,
1
160
FEDEBAL RESERVE BULLETIN.
FEBRUARY, 1920.
seventh, eighth, ninth, tenth, eleventh, and
twelfth Federal reserve districts, while in the
The Comptroller of the Currency reports fourth district there is no change.
the following increases and reductions in the
Failures during December.
number and capital of national banks during
the period from December 27, 1919, to JanNumber.
Liabilities.
uary 30, 1920, inclusive:
New National Bank Charters.
Banks.
New charters issued to
31
With capital of
Increase of capital approved for
103
With new capital of.
Aggregate number of new charters and
banks increasing capital
134
With aggregate of new capital authorized
Number of banks liquidating (other than
those consolidating with other national
banks under the act of June 3, 1864)
10
Capital of same banks
Number of banks reducing capital
0
Reduction of capital
Total number of banks going into liquidation or reducing capital (other than those
consolidating with other national banks
under the act of June 3, 1864)
10
Aggregate capital reduction
Consolidation of national banks under the
act of Nov. 7, 1918
2
Capital
The foregoing statement shows the aggregate of increased capital for the period of
the banks embraced in statement was
Against this there was a reduction of capital
owing to liquidation (other than for consolidation with other national banks under the act of June 3, 1864) and reductions of capital of
Net increases
District.
15,480,000
17,320,000
500,000
71
119
44
49
45
43
48
22
15
23
16
First
Second—
Third
Fourth....
Fifth
Sixth
Seventh...
Eighth....
Ninth
Tenth
Eleventh..
Twelfth...
0
Total..
i
|
i
I
!
!
581 j
1918 |
1919
129
27
49
39
29
93
36
30
29
33
101
$1,949,519
1,849,643
445,629
513,580
581,176
701,224
506,102
554,848
207,178
218,959
186,817
585,667
749,269
805,610
433,208
045,883
662,400
284,320
317,234
173,388
276,666
483,042
191,850
826 618
683 I 8,300,342
12,249,483
1918
Failures in the United States during 1919.
TOTAL COMMERCIAL.
500,000
1919
800,000
District.
17,320,000
First
Second..
Third....
500,000
16,820,000
Commercial Failures Reported.
Commercial defaults numbering 399 in the
United States during three weeks of January,
as reported to R. G. Dun & Co., contrast with
492 in the corresponding period last year, or
practically a 19 per cent reduction. The returns for December, 1919, the latest month for
which complete statistics are available, disclose 581 business reverses, with liabilities of
$8,300,342, which, as to number, is a less remarkably favorable showing than was made
by most months of 1919, but betters by a considerable margin the record of any previous
December since monthly statements were compiled in 1894. The December indebtedness,
while larger than in October, August, and July
of last year, is the smallest ever reported for
December. Comparing with the 683 insolvencies for $12,249,483 of December, 1918, decreases of 14.9 per cent in number and 32.2 per
cent in liabilities are shown, and fewer defaults than last year appear in the first, second,
1919
$1,840,000
Fourth..
Fifth....
Sixth....
Seventh.
Eighth..
Ninth...
Tenth...
Eleventh
Twelfth..
Total..
1918
1917
1916
1918
Number.
Liabilities.
Num- Liabilities.
ber.
744
1,185
360
587
355
455
770
359
149
271
322
894
$5,423,712 $11,884,238 1,285 $18,963,081
14,539,344 32,413,538 1,785 44,460,856
536
3,308,926
6,863,575
14,543,657
858
11,986,436 13,329,257
12,413,340
447
5,605,832
4,090,683
4,896,960
521
5,928,220
4,709,751
8,143,433
7,326,121 12,717,628 1,607 24,536 115
2,924,680
4,021,861
487
4,672,861
725,701
1,223,952
382
3,497,279
2,571,386
3,287,855
419
7,417 463
3.884,398
2,302,723
423
4,699,007
7,128,380 12,130,883 1,232
14,775,927
6,451
67,037,843
113,291,237
163,019,979
9,982 101,637,798 1^63,019,979
13,855 103,464,805 182,441,371
16,993 113,599,026 196,212,256
CLASSIFIED FAILURES, 1919.
Manufacturing.
Trading.
Other commercial.
Districts.
No. Liabilities.
First
Second
Third
Fourth
Fifth
Sixth
Seventh
Eighth
Ninth
Tenth
Eleventh
Twelfth
Total
1918. .
1917
1916.
270
455
111
168
71
75
247
58
32
58
24
296
$4,313,314
14,639,848
2,832,242
8,653,220
2,423,119
2,395,503
6,683,050
1,239,001
281,522
1,380.303
504,153
6,268,941
No.
Liabilities.
400 $4,564,854
596 6,988,065
222 2,453,649
358 2,889,495
252 2,422,854
355 3,146,429
467 4,065,601
261 1,874,280
102
748,624
191 1,670,470
280 2,809,704
529 4,036,418
1,865 51,614,216 4,013 37,670,443
2 766 72 279 fiJtt
57,921,757
3,691 j 79,543,507 1 9*430 70,116,669
4 196
79, QQQ KRft 11 Q93 91,373,828
No. Liabilities.
74 $3,006,070
134 10,785,625
27
1,577,684
61 1,786,542
32
759,859
25
386,288
56
1,968,977
40
908,580
15
193,806
22
237,082
18
570,541
69 1,825,524
573
722
734
874
24,006,578
31,725,569
32,781,195
31,838,848
FEBRUARY, 1920.
161
FEDEBAL RESERVE BULLETIN.
Fiduciary Powers Granted to National Banks.
DISTRICT NO. 8.
executor, administrator, registrar of stocks and
The applications of the following banks for Trustee,
bonds, guardian of estates, assignee, receiver and compermission to act under section 11-k of the mittee of estates of lunatics:
Federal Reserve act have been approved by
First National Bank, Louisville, Ky.
the Federal Reserve Board during the month
of January, 1920.
DISTRICT No. 9.
DISTRICT No.
1.
Trustee, executor, administrator, registrar of stocks and
bonds, guardian of estates, assignee, receiver, and comTrustee, executor, administrator, registrar of stocks and
mittee of estates of lunatics:
bonds, guardian of estates, assignee, receiver, and comNorthfield National Bank, Northneld, Minn.
mittee of estates of lunatics:
Yellowstone National Bank, Billings, Mont.
Citizens National Bank, Boston, Mass.
Merchants National Bank, Fargo, N. Dak.
Trustee, executor, administrator, registrar of stocks and
Trustee, executor, administrator, registrar of stocks and
bonds, and guardian of estates:
bonds, and guardian of estates:
Colonial National Bank, Hartford, Conn.
First National Bank, Chatfield, Minn.
Trustee, executor, administrator, and registrar of stocks
and bonds:
Hartford-Aetna National Bank, Hartford, Conn.
DISTRICT NO. 10.
Ticonic National Bank, Waterville, Me.
DISTRICT NO. 2.
Trustee, executor, administrator, registrar of stocks and
bonds, guardian of estates, assignee, receiver, and comTrustee, executor, administrator, registrar of stocks and
mittee of estates of lunatics:
bonds, guardian of estates, assignee, receiver, and comFirst National Bank, King City, Mo.
mittee of estates of lunatics:
American National Bank, Cheyenne, Wyo.
First National Bank, South Amboy, N. J«
Hamilton National Bank, Denver, Colo.
First National Bank, Montclair, N. J.
Registrar of stocks and bonds:
Stock Yards National Bank, South Omaha, Nebr.
DISTRICT NO. 4.
Trustee, executor, administrator, guardian of estates, assignee, and receiver:
Trustee, executor, administrator, registrar of stocks and
Merchants National Bank, Sallisaw, Okla.
bonds, guardian of estates, assignee, and receiver:
Commercial National Bank, Tiffin, Ohio.
Piqua National Bank, Piqua, Ohio.
DISTRICT No.
DISTRICT No.
11.
6.
Trustee, executor, administrator, registrar of stocks and
bonds, guardian of estates, assignee, receiver, and comRegistrar of stocks and bonds:
mittee of estates of lunatics:
First National Bank, Panama City, Fla.
American Exchange National Bank, Dallas, Tex.
Trustee, executor, administrator, registrar of stocks and
bonds, guardian of estates, assignee, receiver, and com- Trustee, executor, administrator, registrar of stocks and
bonds, guardian of estates, assignee, and receiver:
}:.,,
mittee of estates of lunatics:
First National Bank, El Paso, Tex.
St. Augustine National Bank, St. Augustine, Fla.
Trustee, executor, administrator, registrar of stocks and Executor, administrator, registrar of stocks and bonds,
guardian of estates, assignee, receiver and committee oi
bonds, guardian of estates, assignee, and receiver:
estates of lunatics:
First National Bank, Kingsport, Tenn.
Farmers & Merchants National Bank, Fort Worth,
Trustee:
Tex.
First National Bank, Athens, Ga.
DISTRICT NO. 7.
DISTRICT NO. 12.
«
Trustee, executor, administrator, registrar of stocks and Trustee, executor, administrator, guardian of estates,
bonds, guardian of estates, assignee, and receiver:
assignee and receiver:
First National Bank, Bushnell, 111.
First National Bank of Southern Oregon, Grants Pass,
First National Bank, Peru, Ind.
Oreg.
162
FEDERAL RESERVE BULLETIN.
FEBRUABT, 1920.
RULINGS OF THE FEDERAL RESERVE BOARD.
Preferential rates of discount on member bank notes^
The Federal Reserve Board may, under the
terms of section 14 of the Federal Reserve Act,
approve a preferential rate of discount upon
member bank notes secured by certificates of
indebtedness of the United States, by Liberty
bonds, or by Victory notes. A Federal Reserve
Bank, in the exercise of its discretion, may
decline to make an advance upon such a note
of a member bank unless the certificates of
indebtedness, Liberty bonds, or Victory notes
pledged as security are actually owned by the
member bank and unless the Government
deposit of such bank, if any, is secured by
certificates of indebtedness, Liberty bonds, or
Victory notes actually owned by it.
[See opinion of General Counsel, in the Law Department.]
Exchange charges on member bank's own acceptance^
The question has been presented to the
Federal Reserve Board whether a member
bank may lawfully make an exchange charge
on one oi its own acceptances presented to it
for collection by the Federal Reserve Bank of
its district.
The Federal Reserve Board is of the opinion
that a banker's acceptance is a draft within
the meaning of that part of section 13 which
reads as follows:
bill which accompanied the advice, the importer draws a 90-day draft upon his bank,
although at that time the goods sold may be
unshipped or lying in a foreign port awaiting
shipment, or afloat, or in this country.
The question is whether such a draft is eligible
for acceptance under that part of sectionl3 of the
Federal Reserve Act, which permits any member bank to accept drafts drawn upon it
' which grow out of transactions involving the
importation or exportation of goods."
The Federal Reserve Board has frequently
had occasion to rule that a draft drawn by an
importer of goods for the purpose of procuring
funds with which to pay the foreign seller of
those goods is eligible for acceptance by a member bank whether or not the bill of lading covering the goods is attached to the draft and
whether or not the goods have actually been
shipped by the seller at the time the draft is
drawn. In such a case, that is, where there has
been an actual sale of goods for export, the
draft which is to procure funds with which to
pay for those goods is one which clearly grows
out of a transaction involving the importation
of goods within the meaning of section 13, and
as such is eligible for acceptance by a member
bank, provided, of course, that it complies in
other respects with the terms of the law and the
regulations of the Federal Reserve Board.
This ruling is not intended in any way to
apply to the case of a draft drawn by an American manufacturer for the purpose of financing
the purchase of goods not from a foreign seller
but from an American importer.
That nothing in this or any other section of this act shall
be construed as prohibiting a member or nonmember
bank from making reasonable charges to be determined
and regulated by the Federal Reserve Board, but in no
case to exceed 10 cents per $100 or fraction thereof, based
on the total of checks and drafts presented at any one
time for collection or payment of checks and drafts and
remission therefor by exchange or otherwise; but no such
charges shall be made against the Federal Reserve Banks. Eligibility of drafts drawn by a cotton factor.
It is clear, therefore, that a member bank
has no authority in law to deduct exchange
in accounting to the Federal Reserve Bank
for one of its own acceptances forwarded to it
for collection by the Federal Reserve Bank.
Acceptance of drafts drawn by an American manufacturer for the purpose of financing the purchase of
goods from a foreign seller.
The Board has been asked for a ruling as to
the right of a member bank to accept drafts
drawn under the following circumstances:
An American importer of merchandise receives advices from the foreign seller that he is
making a shipment of the goods bought. This
advice, which is accompanied by a bill for the
the goods, usually comes through before the
arrival of the bill of. lading or the goods themselves. In order to procure funds to pay the
The Federal Reserve Board has considered
the question whether or not a draft drawn by a
cotton factor is eligible for acceptance by a
member bank if secured at the time of acceptance by a warehouse receipt covering cotton
consigned to the cotton factor for the purpose
of sale and, if eligible for acceptance by a member bank, whether it is eligible for rediscount
by a Federal Reserve Bank after acceptance.
The Board is of the opinion that any draft
drawn under the circumstances described,
where it appears that the proceeds are to be
used by the factor not for a commercial purpose but rather for the purpose of lending to
his customers, is not eligible for acceptance
under the terms of section 13 of the Federal
Reserve Act and in consequence is not eligible
for rediscount by a Federal Reserve Bank as
an acceptance.
FBBBUAKY, 1920.
FEDERAL, RESERVE BULLETIN.
163
LAW DEPARTMENT.
The following opinion of General Counsel
has been authorized for publication by the
Board since the last edition of the BULLETIN :
Preferential rates of discount on member bank notes.
The Federal Reserve Board may, under the terms of sec
tion 14 of the Federal Reserve Act, approve a preferential
rate of discount upon member bank notes secured by
certificates of indebtedness of the United States, by
Liberty bonds, or by Victory notes. A Federal Reserve
Bank, in the exercise of its discretion, may decline to
make an advance upon such a note of a member bank
unless the certificates of indebtedness, Liberty bonds, or
Victory notes pledged as security are actually owned by
the member bank and unless the Government deposit of
such bank, if any, is secured by certificates of indebtedness,
Liberty bonds, or Victory notes actually owned by it.
An opinion has been asked upon the following question: If the Federal Reserve Board
approves a Federal Reserve Bank's recommendation of preferential rates of discount for
member bank notes secured by certificates
of indebtedness of the United States, or by
Liberty bonds or Victory notes, may the Federal Reserve Bank make advances at those
rates only when the certificates of indebtedness, bonds, or notes pledged as security are
actually owned by the member bank procuring
the advance and only when the Government
deposit of such bank, if any, at the time that
the advance is made is also secured respectively by certificates of indebtedness, Liberty
bonds, or Victory notes actually owned by the
bank.
There is no doubt that a Federal Reserve
Bank may establish and the Federal Reserve
Board may approve preferential rates of discount upon member bank notes secured by
certificates of indebtedness, Liberty bonds, or
Victory notes; that has already been done in
previous instances. There is also no doubt
that the exercise of the power conferred upon
a Federal Reserve Bank to make advances
upon member bank notes secured by certificates
of indebtedness, Liberty bonds, or Victory
notes is purely optional with the Federal Re-
serve Bank and not mandatory. The Federal
Reserve Board has frequently had occason to
rule that the word "may" as used in the Federal Reserve Act in contradistinction to the
word "shall" is permissive, and that powers
conferred upon Federal Reserve Banks by that
word may or may not be exercised, in the discretion of the board of directors of the Federal
Reserve Bank. In the exercise of that discretion, however, the board of directors is required by the terms of section 4 of the Federal
Reserve Act to—
"administer the affairs of said bank fairly and
impartially and without discrimination in favor
of or against any member bank or banks and
shall, subject to the provisions of law and the
orders of the Federal Reserve Board, extend to
each member bank such discounts, advancements, and accommodations as may be safely
and reasonably made with due regard for the
claims and demands of other member banks.7'
From a legal standpoint, therefore, it is apparent that if a Federal Reserve Bank establishes
and the Federal Reserve Board approves preferential rates upon member bank notes secured by
certificates of indebtedness, Liberty bonds, or
Victory notes, the Federal Reserve Bank may,
as a matter of administration, refuse to make
an advance on such notes unless the certificates
of indebtedness, bonds, or notes pledged as
security are actually owned by the member
bank applying for the advance and unless
the Government deposit of such bank, if any,
at the time such advance is made is also secured respectively by certificates of indebtedness, Liberty bonds, or Victory notes actually
owned by it.
The Federal Reserve Board in transmitting
its approval of a rate may, of course, advise the
Federal Reserve Bank of the nature of its
powers referred to above. An expression of the
Board's opinion in that respect may be helpful
to the reserve bank in the effective administration of its preferential rates.
164
FEDERAL RESERVE BULLETIN.
FEBRUARY, 1920.
Tables are presented below showing the single preceding month since the 1919 rise in
monthly index numbers of wholesale prices of prices began. It should be noted in connection
some of the leading countries of the world com- with the British situation that the index numiuted on the basis of prices in 1913 = 100. ber compiled by the Economist shows an inn all cases except that of the United States crease in prices during December greater than
the original basis upon which the index num- during November.
The index number of the Bank of Japan
ber has been computed has been shifted to
the 1913 base. The monthly and yearly shows an increase of 9 points during November
index numbers are therefore only approximate. as compared with 14 points during October.
These index numbers are constructed by the The increase in prices in France during Devarious foreign statistical offices according to cember was not so great as during the two
methods described in the January BULLETIN. preceding months, according to the index
The December figures are subject to correction. number of the Statistique Generale. The perArrangements are being made at the present centage of advance between August and JDetime for these index numbers to be cabled to cember amount to 20 per cent. The most
the Federal Reserve Board as soon as they are recent figures available show Italian prices as
compiled in order that the information pub- high as French prices in October. No addilished in the BULLETIN may be as timely as tional figures have been received during the
possible. I t is hoped that the cable service past month to show the wholesale price level
will be installed within the course of the next in Sweden or Australia. The Swedish retail
price index computed with July, 1914, prices
two months.
as 100, has moved in the following fashion,
Index numbers of wholesale prices (all commodities).
however, during the year 1919:
f
[1913=100.]
United
States;
Bureau
of Labor
Statistics (328
quotations).
1913
1914
1915
1916
1917
1918
. .
United
Kingdom;
Statist
(45
commodities).
Italy:
Prof.
Bachi
(40
commodities).
Sweden,
official.
Australia; Commonwealth
Bureau
Census
and Statistics
(92 cornties).
Canada;
Department
of Labor
(272
quotations).
100
100
101
124
174
197
100
101
126
159
206
226
100
102
140
187
262
339
100
95
133
202
299
413
100
116
145
185
244
339
100
95
97
117
149
197
100
106
147
138
153
178
100
101
110
135
177
206
203
197
201
203
207
207
219
226
221
223
230
238
224
220
217
217
229
235
243
250
253
264
272
348
340
337
332
325
329
349
347
360
382
405
417
328
323
326
330
337
355
359
367
369
386
369
358
354
339
214
213
206
207
215
228
247
251
257
271
280
U77
212
207
205
206
210
210
218
223
223
222
227
1919.
January...
February .
March
April
May . .
June
July
August
September
October...
November
December.
France;
Bulletin
de la
Statistique
Generate (45
commodities).
Japan;
Bank
of Japan
for
Tokyo
(56
commodities).
276
240
Wholesale prices continued to rise during the
month of December in the United States, England, and Canada, according to index numbers
prepared by the United States Bureau of Labor
Statistics, The Statist, and the Canadian Department of Labor. The rate of increase in
the United Kingdom was less than during the
two preceding months, in the United States
approximately the same, while in Canada the
increase was considerably greater than in any
January
February
March
April
May
June
July
August
September
October
339
334
331
336
328
319
310
313
309
307
Retail prices usually do not fluctuate over
such a wide range as wholesale prices, but their
general upward or downward movement may
be expected to follow that of wholesale prices.
It may be assumed, therefore, that wholesale
prices have been declining in Sweden in contrast with the situation in other countries included in the above table. This is doubtless
due to the very advantageous financial and
trade position in which Sweden has found herself during the past year. This leaves Italy
and France in the most marked condition as to
expansion of any of the eight countries whose
prices are being followed, with prices in France
m December 417 per cent of those in 1913,
appear to be in approximately the same condimore of 1913 prices. United States and Canada
appear to be in approximately the same condition, with prices 240 per cent of the prewar
level.
One of the most notable things in the recent
movement of individual commodity prices is
the increase in the price of lumber and other
building material in England, the United
States, and Canada. In the last two countries
the first important increases since the war
FEBRUABY, 1920.
165
FEDERAL RESERVE BULLETIN.
occurred in June. Between June and December prices had increased 40 per cent. We
have not sufficient data to judge whether
building materials have been in sufficient
demand in France to cause prices to rise.
Quotations for a typical grade of pine, however, were decreased in July but advanced again
in December, 1919.
Metals of all sorts seem to be in very heavy
demand and prices are increasing in France
and England as well as in America. In England
an increase in freight rates the first of the
year is given as the partial reason for an
increase in the price of pig iron. Copper, tin,
zinc, and lead have all shown spectacular
increases in both England and France during
the last two months.
Coal prices for home consumption and
coastal shipping were lowered in December
in England. Fuel prices rose considerably in
Canada, but in the United States they were
at the same level that has prevailed throughout the fall and early winter.
Textiles continue to advance in all coimtries
where we have statistics. In the United
States the prices of commodities in the cloths
and clothing group have advanced approximately 30 per cent between June and Decmber,
and in England 26 per cent between June and
November. During December a slight drop
occurred in the price of wool in England. Silk
prices in France have soared during the last
six months, the unfavorable exchange situation and the small 1919 crop of cocoons being
given as the cause. Wool and cotton have
also been advancing in the French market.
December food prices in England are slightly
higher than those for November, but prices in
this line have not kept pace with those in the
building and equipment lines. Apparently the
same general statement may be made regarding conditions in France. This is due in part
to the fact that wheat, rye, and sugar are still
under control there.
Group index numbers— United States Bureau of Labor Statistics.
[1913=100.]
Date.
1913
1914
1915
1916
1917
1918
Chem- House
Cloths Fuel and Metals Lumber
and
Farm
Miscellaicals and furnishmetal building
and
lighting. and
ing
products. Food, etc. clothings.
neous.
products. materials. drugs.
goods.
100
103
106
119
189
219
100
102
105
124
178
191
100
98
99
123
181
240
100
96
92
114
175
163
100
88
94
142
208
181
100
98
94
100
124
152
100
101
109
157
198
221
100
99
99
115
145
195
100
98
99
117
153
192
222
218
228
235
240
231
246
243
226
230
240
244
209
197
205
212
216
206
218
228
212
211
219
234
234
223
216
217
227
258
282
303
306
313
325
335
170
169
168
167
167
170
171
175
181
181
179
181
172
168
162
152
152
154
158
161
160
161
164
169
161
163
165
162
164
175
186
209
229
231
236
253
191
185
183
178
179
174
171
172
173
174
176
179
218
218
218
217
217
233
245
259
262
264
299
303
212
208
217
1919.
February
March
April
June
July
August
September
October
November
December
..
216
213
212
221
225
217
220
220
220
166
FEDERAL RESERVE BULLETIN.
FEBRUARY, 1920.
Group index numbers— United Kingdom Statist.
{1913=100.]
Foodstuffs.
Date.
1913
1914
1915
1916
1917
1918
100
100
125
152
192
210
100
107
130
161
212
238
100
105
137
169
218
229
100
90
109
140
153
167
100
97
111
152
228
265
100
105
131
163
213
243
100
98
119
153
198
225
226
226
205
206
208
208
208
208
208
226
226
228
221
221
238
228
236
243
275
318
327
322
331
335
234
235
224
224
226
229
231
242
244
253
258
260
159
156
154
154
177
182
202
206
206
222
226
234
246
242
235
239
253
258
256
272
286
305
325
334
246
235
246
243
258
271
284
283
279
284
292
296
218
212
213
213
230
239
250
254
257
270
280
1919.
January
February
March
April
May
June
July
August
September
October
November
December
Minerals. Textiles. Sundries.
Group index numbers—France and Italy.
France, Bulletin
de la Statistique
Generale.
[1913=100.]
Italy,i Prof. Bachi.
[1913=100.]
Date.
Foods
(20).
1913
1914.
1915
1916
1917
1918
1919.
January
March
Mav
July
October
-
December
Materials
(25).
Cereals
and
meats.
Other
foodstuffs.
Textiles.
Minerals
and
metals.
Other
goods.
100
104
131
167
225
281
100
101
145
206
291
387
100
102
132
156
215
100
84
93
135
171
100
96
113
184
326
100
100
207
380
596
100
96
133
197
266
313
316
337
336
319
313
338
323
334
353
369
375
376
360
337
330
330
344
358
367
381
405
435
458
304
300
292
294
293
320
334
332
319
326
300
307
312
330
336
343
331
351
354
364
330
328
331
333
375
381
401
423
430
500
306
306
355
358
366
419
420
421
446
465
422
384
362
349
340
336
342
341
342
341
i Group index numbers January-September, 1918, not available in this country.
Group index numbers—Sweden, official.
[1913=100.]
Date.
1913-14
19141
1915
1916
1917
1918
January
February
March
April
1919.
Raw
able Animal materials
food.
for agriculture.
Coal.
Building
Metals. material.
Paper
pulp.
Hides
and
leather.
100
136
151
152
181
221
100
101
140
182
205
419
100
114
161
180
198
304
100
123
177
266
551
856
100
109
166
272
405
398
100
104
118
165
215
275
116
233
267
300
100
118
158
229
206
195
276
276
276
276
483
448
438
423
356
356
356
367
810
784
814
769
373
341
317
287
293
293
288
288
323
323
323
323
208
208
174
172
i Average for the six months ending Dec. 31,1914.
100
PBBBUARY, 1920.
Group index numbers—Canadian
Date.
1913
1914
1915
1916
1917
1918
Grains
and
fodder.
Animals Dairy
and
meats. products.
Fruits
and
vegetables.
Other
foods.
Department of Labor.1
Hides,
Textiles. leather,
etc.
Metals.
June
July
August
September
October
November
December
Fuel
Imple- Building
and
ments. materials,
lumber. lighting.
Drugs
and
chemicals.
100
114
136
142
206
231
100
107
104
121
160
195
100
100
105
119
149
168
100
99
93
130
233
214
100
104
121
136
180
213
100
102
114
148
201
273
100
105
110
143
168
169
100
96
128
167
217
229
100
101
106
128
174
213
100
100
97
100
118
147
100
94
92
113
163
188
100
106
160
222
236
250
198
192
199
21Z
231
238
240
243
232
232
240
251
191
191
196
209
213
213
216
215
201
180
175
182
191
178
171
184
181
179
186
189
193
204
221
230
206
188
189
198
209
221
200
210
195
178
240
240
223
218
219
213
213
215
218
224
227
228
230
232
293
281
282
284
277
274
278
277
282
289
298
306
171
162
162
166
202
211
235
260
256
252
252
231
204
189
172
162
162
161
166
171
171
165
171
181
229
229
229
223
223
226
226
228
231
225
232
232
154
155
156
153
153
158
168
170
183
188
194
224
209
202
199
206
192
194
194
199
200
201
201
209
240
233
212
210
208
197
195
196
197
198
181
190
1919.
F^hm&rv
March
April
May
167
FEDERAL RESERVE BULLETIN.
i Unimportant groups omitted.
168
FEDERAL RESERVE BULLETIN".
WHOLESALE PRICES.
In continuation of figures shown in the January BULLETIN there are presented below
monthly index numbers of wholesale prices
for the period January, 1919, to December,
1919, compared with like figured for December
of previous years; also for July, 1914, the month
immediately preceding the outbreak of the great
war. The general index number is that of the
United States Bureau of Labor Statistics. In
addition there are presented separate numbers
for certain particular classes of commodities in
accordance with plans announced in previous
issues of the BULLETIN.
Quotations for three commodities, namely
ginghams (Amoskeag, 27-inch), sheetings
(bleached, 10-4,Pepperell), and tickings (Amoskeag, 32-inch), have been omitted. On the
other hand, quotations for alcohol (denatured,
180 proof, New York), which had been dropped
temporarily, have been secured for the month
of November and December, and the commodity was again included in the calculation
of the index numbers for the latter month.
Index numbers for December are provisional,
due to the fact that certain data were not
received in time to render them available for
use in the calculations.
A considerable increase in wholesale prices
is again noted for the month of December.
The general index number of the Bureau of
Labor Statistics stands at 238, an increase of
8 points over the record figure for the month
of November. The index numbers for each
of the three principal classes of commodities
again show an increase, and each establishes a
new record for the group. The increase
is
greatest in the case of producers7 goods,
namely, 5.8 per cent from 216 to 229. Among
the commodities included in the group, decrease in price occurred only for a small number of commodities, among which may be
mentioned copper wire, harness and sole oak
leather, rosin, and tallow. These decreases
were more than offset by increases in price for
an extensive list of commodities, in particular
sugar, steel billets, silver, bar iron, nails, and
cast-iron pipe, cotton and worsted yarns, cotton thread, glazed kid, glycerin, linseed oil,
brick, lath, red-cedar shingles, and bran.
The index number for the group of con-
FEBRUARY, 1920.
sumers' goods shows an increase of 3.6 per
cent, from 236 to 244, the latter being 3 points
in excess of the previous record of 241, the
figure for the month of August. Decrease in
price occurred only in the case of a relatively
small number of commodities, in particular
coffee, cottonseed oil, peanuts, apples, lemons
and oranges, onions, butter (Chicago quotation), lard, and bacon. These decreases by
no means served to offset the increases in price
which occurred for an extended list of commodities, among which may be noted granulated sugar, wheat and rye flour, cornmeal,
molasses, potatoes, vinegar, milk and eggs,
ham, lamb and mutton, pork and poultry,
various textiles, such as print cloths, sheetings,
shirtings, denims, underwear and suitings,
and vici calf shoes.
The index number for the group of raw materials for the month of December stands at
233, an increase of 7 points, or 2.9 per cent
over the record figure for the previous month.
The number for only one of the subgroups included under the head of raw materials, namely,
animal products, shows a decrease from 212 to
209, or 1.3 per cent. Increases in the prices
of silk, goatskins, poultry (Chicago quotation),
ewes and lambs, were more than offset by decreases in the prices of good to choice steers,
hogs, poultry (New York quotation), calfskins, and packer hides. The index number
for the subgroup of mineral products has increased 1.3 per cent, from 183 to 185, due to
increases in the prices of coke, petroleum, pig
iron, lead, and zinc, which were not offset by
the decrease in the price of copper. Considerable increases are shown in the index
numbers for both the farm products and forest
products subgroups. The figure for the latter
group shows an increase of 8.4 per cent, from
239 to the new record figure of 259, due to increases in the prices of Douglas fir, maple, white
oak, white and yellow pine, poplar, and hemlock. The index number for the farm products subgroup has increased from 276 to 288, or
4.3 per cent, the December figure likewise establishing a new record. Decreases in the
prices of corn and cotton (New York quotation) were more than offset by increases in the
prices of cotton (New Orleans quotation),
wheat, oats, rye, barley, flax, alfalfa, timothy,
and tobacco.
FEBBDARY, 1920.
169
FEDERAL RESERVE BULLETIN.
Index numbers of wholesale prices in the United States for principal
classes of
commodities.
[Average price for 1913=100.]
Raw materials.
Year and month.
July, 1914
December,
December,
December,
December,
December,
All commodities
Producers' Consumers: (Bureau of
goods.
goods.
Labor Sta-
Farm
products.
Animal
products.
Forest
products.
102
98
110
155
235
237
106
99
97
131
178
210
97
94
93
99
130
150
91
91
104
180
162
185
99
96
102
144
180
200
93
93
116
164
181
199
103
102
107
142
185
221
100
98
106
147
183
207
234
224
237
246
255
250
261
251
240
254
276
288
208
210
217
224
225
217
233
235
215
212
212
209
147
148
149
145
146
156
166
193
227
234
239
259
179
175
173
170
170
173
177
180
184
184
183
185
196
194
199
202
205
203
214
218
216
220
226
233
196
192
190
186
189
196
202
212
212
211
216
229
216
205
210
214
219
217
230
241
226
228
236
244
203
197
201
203
207
207
219
226
221
222
230
238
1914..
1915..
1916..
1917.
1918..
Mineral
products.
Total raw
materials.
number).
1919.
January
February...
March
April
May........
June
July
August
September..
October
November..
December..
In order to give a more concrete illustration
of actual price movements there are also presented in the following table monthly actual
and relative figures for certain commodities of
a basic character, covering the period January,
1919, to December, 1919, compared with like
Average monthly
figures for December of previous years; also
for July, 1914, the month immediately preceding the outbreak of the great war. The
actual average monthly prices shown in the
table have been abstracted from the records of
the United States Bureau of Labor Statistics.
wholesale prices of
commodites.
[Average price for 1913=100.]
Corn. No. 3,
Chicago.
Wheat, No. 1,
Cotton, middling, northern
spring,
New Orleans.
Minneapolis.
Wheat, No. 2,
red winter,
Chicago.
Year and month.
Average Rela- Average
price per tive price per
bushel. price. pound.
July, 1914
December, 1914.
December, 1915.
December, 1916.
December, 1917.
December, 1918.
January, 1919...
February, 1919..
March, 1919
April, 1919
May, 1919
June, 1919
July, 1919
August, 1919....
September, 1919.
October, 1919...
November, 1919.
December, 1919.
$0.7044
.6340
.6794
.9125
1.5875
1.4290
1.3750
1.2763
1.4588
1.5955
1.7613
1.7563
1.9075
1.9213
1.5410
1.3888
1.4875
1.4485
114
103
110
148
258
232
223
207
237
285
310
312
250
226
242
235
$0.1331
.0721
.1185
.1757
.2894
.2958
.2850
.2694
.2681
.2670
.2947
.3185
.3377
.3125
.3078
.3538
.3963
.3990
Relative
price.
Average
price per
bushel.
105
57
93
138
228
233
224
212
211
210
232
251
266
246
242
279
312
314
$0.8971
1.1921
1.1311
1.7611
2.1700
2.2205
2. 2225
2.2350
2.3275
2. ."5390
2.5925
2.4575
2.6800
2.5250
2.5350
2.6250
2.8250
3.0300
Rela- Average
tive price per
price. bushel.
103
136
129
202
248
254
254
256
266
296
297
281
307
289
290
301
323
347
$0.8210
1.2023
1.2322
1.7275
2.1700
2.3088
2.3788
2.3450
2.3575
2.6300
2.7800
2.3613
2.2580
2.2394
2.2385
2.2394
2.2881
2.4490
Relative
price.
Cattle, steers,
good to choice,
Chicago.
Average
price per
100
pounds.
83 $9.2188
8.9125
122
8.4875
125
175 10.2917
220 13.2350
234 18.3600
18.4125
241
238 IS.4688
239 18.5750
267 18.3250
282 17. 7438
239 15. 4600
229 , 16.8688
227 ! 17. 6375
227 16.8050
227 17.5938
232 17.5000
248 17. 0750
Hides, packers',
heavy native
steers, Chicago.
Rela- Average Relative price per tive
price. pound. price.
108
105
100
121
156
216
216
217
218
215
209
182
198
207
198
207
206
201
$0.1938
.2250
.2575
.3350
.3500
.2900
.2800
.2800
.2763
.2950
. 3513
.4075
.4860
.5200
.4638
.4820
.4688
.4100
105
122
140
182
190
158
152
152
150
160
191
222
264
283
252
262
255
223
170
FEDERAL RESERVE BULLETIN.
FEBRUARY, 1920.
Average monthly wholesale prices of commodities—Continued.
[Average price for 1913=100.]
Hogs, light,
Chicago.
Year and month.
July, 1914
December, 1914.
December, 1915.
December, 1916.
December, 1917.
December, 1918.
January, 1919...
February, 1919.
March, 1919
April, 1919
May, 1919
June, 1919
July, 1919
August, 1919....
September, 1919
October, 1919...
November, 1919.
December, 1919.
Wool, Ohio, i-f
grades, scoured.
Average
price per
100
pounds.
Relative
price.
Average
price per
pound.
$8.7563
7.1313
6.2438
9.7500
16.7150
17.4400
17.4125
17.4688
18.8550
20.3813
20.7000
20.7800
22.3875
21.6125
18.2100
14.7250
14.1438
13.6800
104
84
74
115
198
206
206
207
223
241
245
246
265
256
215
174
167
162
$0.4444
.4861
.6429
.7286
1.3571
1.4365
1.1200
Coal, Pocahontas, Norfolk.
.2000
.0909
.0727
.1818
.. 2364
.2364
.2182
.2634
1.2545
1.2545
Relative
price.
Hemlock, New
York.
Average
price per
M feet.
94 $24.5000
103 24.2500
136 21.2500
155 24.5000
288 30.5000
305
255 36.0000
232 36.0000
255 36.0000
232 36.0000
228 36.0000
251 36.0000
263 41.0000
263
259 43.0000
268 44.0000
266 44.0000
266 48.0000
Coke, Connellsville.
Relative
price
101
100
101
126
149
149
149
149
149
149
169
177
182
182
Copper, ingot,
electrolytic.
New York.
Yellow pine,
flooring,
New York.
Coal, anthracite, Coal, bituminoi
stove, New York,
run of mine,
tidewater.
Cincinnati.
Average
price per
M feet.
Relative
price.
Average
price per
long ton.
$42.0000
41.0000
38.0000
41.0000
57.0000
63.0000
63.0000
64.0000
64.0000
64.0000
65.0000
68.0000
73.0000
78.0000
95.0000
100.0000
100.0000
112.0000
94
92
85
92
128
141
141
144
144
144
146
152
164
175
213
224
224
251
$4.9726
5.1796
5.1710
5.6801
6.4736
7.9500
7.9500
7.9500
7.9044
7.9045
7.9857
8.1174
8.1881
8.3145
8.4020
8.4135
8.4273
8.4098
Lead, pig,
desilverized,
New York.
Rela- Average Relative price per tive
price. short ton price.
102
102
112
128
157
157
157
156
156
158
160
162
164
166
166
167
166
Petroleum, crude,
Pennsylvania,
at wells.
$2.2000
2.2000
2.2000
4.5000
3.7500
4.1000
4.1000
4.0000
4.0000
4.0000
4.0000
4.0000
4.0000
4.0000
4.5000
4.5000
4.1000
4.1000
100
100
100
205
170
186
186
182
182
182
182
182
182
182
205
205
186
186
Pig iron, basic.
Year and month.
Average
price per
long ton.
July, 1914
December, 1914..
December, 1915..
December, 1916..
December, 1917..
December, 1918..
January, 1919
February, 1919..
March, 1919
April, 1919
May, 1919
June, 1919
July, 1919
August, 1919
September, 1919.
October, 1919....
November, 1919.
December, 1919..
Rela- Average Relative price per tive
price. short ton. price.
Average
price per
pound.
Relative
price.
Average
price per
pound.
77
67
$0.1340
.1275
.1975
.3450
.2350
.2540
.2038
.1731
.1509
.1530
.1600
.1756
.2150
.2281
.2220
.2172
.2038
.1873
85
81
126
219
149
161
130
110
96
97
102
112
137
145
141
138
130
119
$0.0390
.0380
.0525
.0730
.0650
.0667
.0558
.0508
.0524
.0507
.0508
.0530
.0561
.0579
.0609
.0643
.0676
.0718
$3.0000
3.0000
2.8500
* 6.0000
4.4120
4.6320
4.6320
4.6320
4.9000
4.9000
4.9000
5.1400
5.1400
100
100
95
200
147
154
154
154
163
163
163
171
171
5.1400
4.6320
4.6320
171
154
154
Cotton yarns,
northern cones,
10/1.
$1.8750
1.6250
2.3000
5.7500
6.0000
6.0000
5.7813
5.2188
4.4688
3.9000
3.8437
4.0000
4.0950
4.2188
4.5920
4.8250
5.9375
6.0500
94
236
246
246
237
214
183
160
158
164
168
173
188
198
243
248
Leather, sole,
hemlock No. 1.
Steel billets,
Bessemer,
Pittsburgh.
Relative
price.
89
86
119
166
148
152
127
115
119
115
115
120
128
132
138
146
154
163
Steel plates,
tank, Pittsburgh.
Average
price per
barrel.
$1.7500
1.4500
2.0000
2.6000
3.5000
4.0000
4.0000
4.0000
4.0000
4.0000
4.0000
4.0000
4.0000
4.0000
4.2500
4.2500
4.4375
4.6000
Relative
Average
price per
Relative
price. long ton. price.
71
59
82
106
143
163
163
163
163
163
163
163
163
163
173
173
181
188
Steel rails, open
hearth, Pittsburgh.
$13.0000
12.5000
17.5000
30.0000
33.0000
33.0000
30.0000
30.0000
28.9375
25.7500
25.7500
25.7500
25.7500
25.7500
25.7500
25.7500
28.3125
34.6000
85
119
204
224
224
204
204
197
175
175
175
175
175
175
175
193
235
Worsted yarns,
2-32's crossbred.
Year and month.
July, 1914..
December, 1914.
December, 1915.
December, 1916.
December, 1917.
December, 1918.
January, 1919...
February, 1919..
March, 1919
April, 1919
May, 1919
June, 1919
July, 1919
August, 1919....
September, 1919
October, 1919...
November, 1919.
December, 1919.
Average
price per
pound.
Relative
price.
Average
price per
pound.
$0.2150
.1600
.2100
.3850
.4950
.5500
.5000
.4164
.4132
.4300
.4826
.5608
.5912
.6130
.5903
.6111
97
72
95
174
224
249
226
188
187
194
218
253
267
277
267
276
300
316
$0.3050
.3250
.5700
.5000
.4900
.4900
.4900
.4900
.4900
.4900
.5100
.5300
.5700
.5700
.5700
.5700
.5700
Average
price per
pound.
Relative
price.
Average
price per
pound.
Relative
price.
Average
price per
pound.
Relative
price.
Average
price per
pound.
108 $19.0000
74
74
119
223
184
175
169
169
164
149
149
149
149
149
149
149
160
$0.0113
.0105
.0180
.0425
.0325
.0310
.0300
.0300
.0291
.0265
.0265
.0265
.0265
.0265
.0253
.0261
.0265
.0265
76
71
122
287
220
209
203
203
197
179
179
179
179
179
171
176
179
179
$30.0000
30.0000
30.0000
40.0000
40.0000
57.0000
57.0000
57.0000
54.5000
47.0000
47.0000
47.0000
47.0000
47.0000
47.0000
47.0000
47.0000
47.0000
100
100
100
133
133
190
190
190
182
157
157
157
157
157
157
157
157
157
$0.6500
.6200
.8800
1.2000
2.0000
2.0000
1.7500
1.7000
1.5000
1.5000
1.5000
1.6000
1.6000
1.6242
1.7500
1.7500
Relative
price.
115
202
177
174
174
174
174
174
174
181
188
202
202
202
202
202
19.0000
30.6000
57.5000
47.5000
45.1000
43.5000
43.5000
42.2500
38.5000
38.5000
38.5000
38.5000
38.5000
38.5000
38.5000
41.3750
46.4000
V
Relative
price.
84
80
115
154
257
258
225
219
193
193
193
206
206
209
225
225
FEBRUARY, 1920.
171
FEDERAL RESERVE BULLETIN.
Average monthly wholesale prices of commodities—Continued.
[Average price for 1913=100.]
Beef, carcass,
good native
steers, Chicago.
Coffee, Rio No. 7.
Flour, wheat,
standard patents, Hams, smoked,
1914-1917, 1919;
Chicago.
standard war,
1918, Minneapolis.
Average
price per
pound.
Average
price per
barrel.
Year and month.
July, 1914
December, 1914.
December, 1915.
December, 1916.
December, 1917.
December, 1918.
January, 1919...
February, 1919..
March, 1919
April, 1919
May, 1919
June, 1919
July, 1919
August, 1919
September, 1919
October, 1919...
November, 1919.
December, 1919.
Average
price per
pound.
Relative
price.
$0.1350
.1428
.1375
.1375
.1870
.2450
.2450
.2450
.2450
.2450
.2430
.2025
.2075
.2350
.2275
.2290
.2350
.2350
104
110
106
106
144
189
189
188
156
160
181
176
177
181
181
$0.0882
. 0631
.0763
.0925
.0756
.1725
.1547
.1544
.1602
.1695
.1931
.2114
.2303
.2150
.1663
.1650
.1697
.1518
Relative
price.
79
57
69
83
68
155
139
139
144
152
173
190
207
193
149
148
152
136
$4.5938
5.9500
6.2250
8.6813
10.1313
10.2100
10.2750
10.5500
11.2125
12.2150
12.4188
12.0125
12.1550
12.0063
11.6200
12.0313
12.9500
14.0250
Relative
price.
100
130
136
189
221
223
224
230
245
266
271
262
265
262
254
262
283
306
Average
price per
pound.
$0.1769
.1633
.1556
.1988
.3016
.3670
.3494
.3595
.3806
.3835
.2900
.2859
Relative
price.
106
98
94
120
181
221
210
201
203
216
227
229
230
231
209
174
172
174
Illuminating oil,
150° fire test,
New York.
Average
price per
gallon.
$0.1200
.1200
.1300
.1200
.1400
.1750
.1750
.1750
.1810
.1850
.1850
.2000
.2050
.2180
.2200
.2200
.2200
.2200
Relative
price.
97
97
105
97
114
142
142
142
147
150
150
162
166
177
178
178
178
178
Sugar, granulated,
New York.
Average
price per
pound.
$0.0420
.0483
.0592
.0692
.0804
.0882
.0882
.0882
.0882
.0882
.1085
Relative
pric3.
98
113
139
162
188
207
207
207
207
207
207
207
207
207
207
207
207
254
DISCOUNT AND INTEREST RATES.
in certain centers, in particular in districts Nos. 6 and 11, rates show little
or no such change. The increase is again most pronounced in the case of
commercial paper purchased in the open market and of bankers' acceptances. While remarked in the changes in high, low, and customary rates
for these classes of paper, in the case of customers' commercial paper and of
interbank loans, it is found largely only in an increase in the low rates,
and in the case of paper secured by Liberty bonds and certificates of indebtedness largely in the low and customary rates. Increase in the high rates
on loans secured by stock exchange or other current collateral is noted in
a number of centers. Comparison with rates prevailing for the period
ending January 15,1919, reveals the fact that in the case of commercial paper
purchased in the open market, present low and customary rates are higher
in a considerable number of centers, likewise low rates on interbank loans,
high, low, and customary rates on bankers' acceptances and on paper
secured by Liberty bonds and certificates of indebtedness, and in a lesser
number of centers on collateral loans secured by prime stock exchange or
i the following tables are presented actual discount and interest rates
mailing in the various cities in which the several Federal Reserve Banks
i. their branches are located during the periods ending December 15,
J19, and January 15, 1920. Quotations are given for prime commercial
paper, both customers' and purchased in the open market, interbank
loans, bankers' acceptances, and paper secured by prime stock exchange
or other current collateral. Separate rates are quoted for paper of longer
or shorter maturities in the first-named and last-named classes. In addition,
quotations are given for commodity paper secured by warehouse receipts
and for cattle loans, as reported from centers in which such paper is current.
Quatations are also given of rates charged on ordinary loans to customers
secured by Liberty bonds and certificates of indebtedness, as well as quotations in New York for demand paper secured by prime bankers' acceptances. Quotations for new types of paper will be added from time to time
as deemed of interest.
A continuance of the pronounced upward movement in interest rates is
noted in the majority of centers during the period under review, although
other current collateral.
Discount and interest rates prevailing in various centers.
DURING 30-DAY PERIOD ENDING DEC. 15, 1919.
Prime commercial paper.
District.
City.
Customers'.
30 to 90
days.
No. 1...
No. 2...
No. 3...
No. 4...
No. 5..
No. 6..
No. 7..
No. 8..
No. 9...
No. 10..
No. 11.
Boston
New York i.
Buffalo
Philadelphia
Cleveland...
Pittsburgh..
Cincinnati...
Richmond..
Baltimore...
Atlanta
Birmingham
Jacksonville.
New Orleans
Nashville...
Chicago
Detroit
St. Louis....
Louisville...
Memphis
Little Rock.
Minneapolis.
Kansas City.
Omaha
Denver
Dallas
El Paso
,
Houston
H. L. C.
6 5} 6
6 5 5|-5|
6 5 6
6 5i 5f
6 5* 6
6 5 6
6 5* 6
6 5* 6
6 5* 6
7 5 6
8 6 6
8 6 7
7 5 6-6*
6 5* 6
6 5i 5J-6
6 6 6
6 5 5J
6 5* 6
6 5 6
7 6 6J
6 5|6
7 5 6
6 5* 6
8 5* 6
8 6 6
8 6 8
7 5 6
Open market.
4 to 6
months.
H. L.
a
6 5| 6
6 5 5|-6
6 5 6
6 5£ 526 6 6
6 5* 6
6 5* 6
6 5* 6
6 5* 6
7 5 6
8 6 6
8 6 7
6* 5 6
6 6 6
6 5*
6 6 6
6 5 6
6 5* 6
6 6 6
7* 6 7
6J 6 6
7 5 6
6 5f 6
8 5* 6
8 6 6
8 6 8
7 6 6
30 to 90
days.
H. L. C.
6 5| 6
6 Si 5*-5f
6 5 5*-6
6 5f 6
6
6
6
5f
6
8
6
5*
5} 6
Si 6
Si Si
5f 5f
5*6
5£ 6
Si 6
S\ 5*
6 54
6 5* 6
6 5*
6 5f
?
fi *)t 5s-
6 5* 6
?a ?
6
5-2-6
6 6 6
8 6 7
Interbank
loans.
4 to 6
months.
Bankers' acceptances,
60 to 90 days.
Indorsed.
H. L. C. H. L. C. H.
6J 5 | 6
6 5 5*
6 5*5f
6 5 Si-Si
6 5 5*-6 6 5 6
6 5* 6
6 5 5*
6 5 5*
6 5£ 6
6 5* 6
6 6 6
6 5* 6
6 6 6
5f 5f 5*
7
6
8 6 6
6 5
6
6 6 6
Si
6*
6 5*
6 5* Si
6 54
6 5*
6 54 6
6 5* 6
6
6
6i 6
6
6
5 5 5
6 5 6
6
6 6 6
6 6
5
6 5*5*
7 5 6
6
7 5* 6
6
5|-6 7 6 6
6 6 6
8 6 8
8 6 7
6 5 6
!*??
3
?a
L. C.
Unindorsed.
Demand.
3 months.
H.
H.
8
15
6
6
6
6
6
6
H. L.
5
6
L.
'~
-
6 5* 6'
5i 4*
5i 4f 4 |
5 4* 5
5*
6
6
4£
6
6
6
5*-6
6
6
7
6
5
5*
6
6
5*
6
6
7
6
4f
4*4f
4|5
6 6
4f 4J
Collateral loans—stock exchange
or other current.
6
6
6 6
5* 5J
L. a
6
5 6
5 6
5 6
6 6
5 6
6 6
5|6
6 5* 6
7 5 6
8
8
7
6
6
6
6
6
6
8
8
6
6
8
6
8
7
6 6
6 7
5*6
6 6
5*
6 6
5i 6
5* 6
5* 6
6 6-7
6 7
5 6
5f 5f
6 6
6 6
6 8
6 7
8 6
a
Secured by
Cattle
loans.
Secured by Liberty
warehouse bonds and
receipts, certificates
etc.
of indebt-
3 to 6
months.
L.
6
5
5
5*
6
5*
6
6
5*
5
6
7
5*
6
5*
6
5f
5*
6
6
7
5
5f
6
6
6
6
C.
6
6
6
6
6
6
6
6
6
6
6
7
6
6
H. L. C.
H. L. C.
6 6 6
6 6 6
6 6 6
6 6 6
6 6
6 6
6
5*
7 5* 6-6*
6 6 6
6 5*
6 5* 6
6 6 6
6
6
8
7
6* 6 6
8 6 6-7 8 5* 6
7 6 6
10 6 8
8 8 8
8 6 7
H. L.
6
6
6
6
6
6
6
6
5*
a
4J 5
4* 5-5*
5 5*-6
5 5
6 6
5 6
5* 6
4f 5
5* 5*
6 46
7
7
6
6
6
6
6
6
7
6
6
6
8
6 6
4i 5*-6
5* 5f
5*
6 6
4f 5*
5 5*
4|6
6 6*
5*5*
4^6
5 6
4f 6
8 5 8
CD
No. 12... San Francisco.
Portland
Seattle
Spokane
Salt Lake City.
6
7
8
8
8
5 5
6 6
5 7
54. 7
6 7
6
7
8
8
8
54, 6
6 6
5f 7
6 7
6 7
5| 51 54,
5^ 5 5$
6
6
6
n
af
6 5 54,
6 6 6
6 6 6
6 6
6 6
54.
51
6 51 51
6
5f
6
6
5
4|
64
?
?
5
4f
4 | 6*
6
4| 6
6
6
4f 5
6 6
6
7
8
8
8
6
6
54.
5*
6
6
6
7
6
7
8
8
8
7
5 6
6 6
6 7
6 8
6 7
6
6
8
8
8
6
6
6
6
6
6
7
8
8
7
6
6
7
g
7
S 6
6 6
5 7
44. 6
5 6
DURING 30-DAY P E R I O D ENDING JAN. 15, 1920.
Prime commercial paper
30 to 90
days.
No. 5
No. 6
No. 7.,..
No. 8
No. 9....
No. 10...
No 11
No. 12...
H L. C.
Boston
5-f ft
New York K.. ft
6
6
ft
ft
Buffalo
Philadelphia.. ft 5f 5f
ft ft ft
Cleveland
5 6
6
Pittsburgh
ft
Cincinnati. . . ft
5 ft
Richmond
ft
ft
Baltimore...
7 5^ ft
Atlanta
Birmingham.. 8 6 6
Jacksonville... 8 ft 7
New Orleans.. 7 5 6-64,
ft
ft
Nashville
5 54^-6
Chicago
6
Detroit . . .. ft 5 ft
ft
ft
St. Louis
ft
ft
Louisville
6
6
Memphis
Little Rock
7
Minneapolis... 6
Kansas City... 7
7
Omaha
rf ft
8
Denver
8 ft" ft
Dallas
8 ft 8
Fl Paso
7 5 ft
Houston
San Francisco. 6 54. 6
Portland
7 ft 5
8 ft 7
Seattle
8 54, 7
Spokane
Salt Lake City 8 V *
f
It
f
35 os OS
No. 1...
No. 2....
No. 3....
No. 4....
30 to 90
days.
4 to 6
months.
H
76
6
ft
ft
ft
ft
ft
ft
ft
8
8
7
ft
6
ft
ft
ft
6
8
6
7
8
8
8
7
6
7
8
8
8
L.
ft
C.
ft
6
ft
5f 5f
ft
ft
6
ft
ft ft
54 ft
ft
6
6
ft 7
6
5
ft ft
ft
54 ft
*i4 ft
6
ft-7
6
5
rl ft
ft
ft
ft
5
ft
ft
6
i
ft
ft
6
ft
7
7
/
H. L.
a
ft
6
ft
ft
6
ft
ft
6
ft
ft
5
ft
ft
6
54
ft
6
ft
L.
ft
5
5
C.
ft
6
ft
ft
ft
6
ft
ft
ft
6
6
6
ft
ft
54 ft
8
ft
5
6
6
54 ft
5" 6
6
6
6
5! 6
1!
6
6
6
ft
6
6
?'
ft
6
ft
6
8
ft
ft
ft
ft
ft
4 to 6
months.
ft
ft
54,
54
6j
ft
ft
6
ft
6
6
54
ft
ft 5- ft
54 51 54
ft ft ft
8 ft 7
ft
ft
ft
ft
6
ft
64, 6
5i 51
ft ft
ft
54
ft ft
ft
8
f
H ^ 66
ft ftl
ftl
6 54. 51 6 5§
b
b 6
b b
6
ft
f
6
ft
6
ft
6
54.
ft
ft
54
ft
7
Indorsed.
H
ft
6
ft
g
6
ft
ft
ft
ft
8
ft
6
ft
OS OS
City.
3s OS OS
District.
6
5
6
ft
6
7
7
7
ft
8
ft
6
ft
ft 8
51 6
b
V
a
L.
5% 54
H.
54
5 5-5| 6
5 6 ft
54 54 .*>#
ft
6
5|
54 ft
5
ft
6 ft
as
6'
ft
5
54,
54,
5
6
ft
6
fif
54
54 6
5 5
54, 6
ft ft
6
6
ft
ft
ft ft
ft
6
ft 8
5 ft
54, 54.
ft ft
ft ft
6
6
6
7
Collateral loans—stock exchange
B a n k e r s ' acceptances,
60 to 90 days5.
Interbank
loans.
Open market.
(Customers.
ft
6
L.
5
a
54-
4f 41-54.
47
5&
44
4f
ft
54
ft
5
5*
5
44.
6
ft
6
6
Unindorsed.
H.
a
5'
54,
51
6'
5-5f
6
6
5$ 5 53
si
41
5
1
44 5
41
ft
54 ft
7
6
ft 7
54. 6
4|
11
5
53
f
44
41
"fif
4!
51
53
41
5
51 45 5
51 5J 5*
or other current.
Demand.
ff
10
25
ft
ft
ft
6
ft
ft
ft
8
8
8
7
?ft
ft
6
8
7
6
ft
8
ft
8
6
ft
5
41
51 g*
5£ 4 | 5
6
ft
6
7
6
7
8
8
8
L.
ft
4
ft
5
ft
54
ft"
54
6*
ft
5
8*
6
ft
ft
ft
6
ft
ft
ft
ft
6
7
6-64.
51
5 ft
54 ft
54 ft
6
7
6
5 6
54 ft
ft ft
ft ft
ft 8
?6
ft
7
6
ft
ft
6
7
7
3 months.
H.
ft
6
ft
ft
ft
6
ft
ft
ft
8
8
8
7
fft
ft
6
8
8
8
7
8
ft
8
8
6
7
8
8
L.
ft
54
ft
54
ft
54
6
ft
5
54.
5
54
54
C.
ft
6
ft
ft
ft
6
ft
ft
ft
ft
6
ft
6-64,
6
ft
ft
ft
6
7
7
6
6
5
*>£ ft
ft ft
ft
ft 8
ft 7
5
6
ft ft
ft 7
6
7
Secured by
warehouse
receipts,
Cattle
loans.
etc.
3 to 6
months.
H. L.
ft
6
ft
6
ft
6
ft
ft
ft
8
8
8
7
ft
?
a
H L. C.
54 ft
ft ft
6
ft
6
ft
6
ft
54 ft
ft ft
54 ft
ft
6
7
5 6-64.
8
8
8
g
8
6*
ft
6
ft
ft
ft"
ft 54 ft
6 54. 6
8 ft 7
8 7 8
8 5 6
ft
7
8 ft ft
ft ft
6
8 ft 8
ft 7
8
6
6
ft
7
8 ft ft
8 6 8
ftl
H. L. C.
ft
6
ft
¥
54
6
6
6
6
g
6
8
7
8
10
8
6 6-7
6 6
6 6
6 8
8 8
7
8
8
8
Secured by
Liberty
bonds and
certificates
of indebtedness.
H. L.
6
4*
5
6
ft 5
ft 5
ft 6
6 6 6 5
ft
ft 54,
1
ft 4f
5 ft
ft
54 ft 8 5
6
6* 6
ft ft 7
54, 6-7 6 41
g
g
ft 54
51 6 6
ft
ft
g
54 g
5
6
6
6
6
7
5
6 6
6
6
6
41
5§
54
6
8 43
ft 8
4
8
8 g
ft 7
8 5
a
7
8
i
C.
54
5^6
ft
54
ft
g
54
f
ft
6
ft
5-6
f
*
ft
ft
g
54
ft
g
g
I
ft
g
5
g
7
6
V
6
8
8
1
Rates for demand paper secured by prime bankers' acceptances, high, 6; low, 44,.
'Rates for demand paper secured by prime bankers' acceptances, high 6, low 4, customary, 4-5§.
OO
174
FEBRUARY, 1920.
FEDERAL RESERVE BULLETIN.
PHYSICAL VOLUME OF TRADE.
In continuation of tables in the January
there are presented in the following tables certain data
relative to the physical volume of trade. The
FEDERAL RESERVE BULLETIN
January, 1919, issue contains a description of
the methods employed in the compilation of
the data and the construction of the accompanying index numbers. Additional material
will be presented from time to time as reliable
figures are obtained.
Live-stock movements.
[Bureau of Markets.)
Receipts,
Shipments.
Cattle and
calves, 60
markets.
Hogs, 60
markets.
1918.
December...
Head.
2,134,979
Head.
5,589,886
Head.
1,595,515
1919.
January
February
March
April
May
June
July
August
September...
October
November...
December...
111,704
440;329
501,597
751,943
822,410
580,256
007,266
019,139
377,054
989,090
680,042
169,631
5,861,685
4,404,751
3,632,874
3,668,210
3,862,785
3,812,466
2,998,836
2,103,609
2,401,677
3,144,831
3,775,589
5,024,650
1,567,613
1,131,805
1,216,988
1,388,732
1,425,018
1,685,236
2,177,942
3,211,331
3,810,441
3,605,198
2,751,421
2,393,632
and
Sheep, 60 Horses
mules, 44
markets.
markets.
Hogs, 54
markets.
Sheep, 54
markets.
Horses and
mules, 44
markets.
Head.
805,802
Head.
1,449,781
Head.
1,610,355
Head.
71,513
Head.
3,937,451
761,168
528,326
563,893
698,599
788,086
709,637
706,843
894,816
1,150,183
1,532,297
1,374,452
967,348
1,546,875
1,288,134
1,272,654
1,107,411
1,181,745
1,373,824
963,662
690,821
860,614
1,103,837
1,308,095
1,608,292
608,016
418,827
481,907
575,136
614,275
828,046
997,338
2,014,267
2,466,937
2,159,531
1,597,007
2,409,482
106,459
76,512
64,332
49,634
34,658
36,889
43,738
74,268
135,724
125,701
134,679
86,534
3,022,518
2,311,799
2,382,786
2,430,780
2,618,764
2,948,396
2,711,581
3,674,172
4,613,458
4,921,366
4,414,233
5,071,656
Total, all
kinds.
Cattle and
calves 54
markets.
Head.
71,493
Head.
9,391,873
110,411
82,526
68,938
50,770
33,977
40,067
48,691
81,917
140,848
124,497
140,192
9,651,413
7,059,411
6,420,397
6,859,655
7,144,190
7,118,025
7,232,735
7,415,996
8,730,020
9,863,616
9,347,244
9,674,579
Total, all
kinds.
Receipts and shipments of live stock at 15 western markets.
Cliicago, Kansas City, Oklahoma City, Omaha, St. Louis, St. Joseph, St. Paul, Sioux City, Cincinnati, Cleveland, Denver, Fort Worth, Indianapolis, Louisville, Wichita.]
RECEIPTS.
[Monthly average, 1911-1913=100.)
Sheep.
Cattle and calves.
Head.
Relative.
1918.
December
1919.
January.
February
March
April
May
June
July
August
September
October
November
December
Head.
Relative.
Head.
1,706,945
169
4,197,313
191
1,114,761
1,656,046
1,096,118
1,094,614
1,255,379
1,262,065
1,122,782
1,527,881
1,541,133
1,871,042
2,317,487
2,046,664
1,650,315
164
116
109
125
125
111
152
153
186
230
4,603,335
3,451,894
2,842,663
2,823,484
3,049,223
3,061,838
2,411,539
1,595,759
1,704,944
2,160,079
2,715,955
3,785,870
209
168
129
128
139
139
110
73
78
98
124
172
Horses and mules.
Relative.
Head.
82
36,153
1,079,377
774,881
847,842
970,070
934,613
1,116,003
1,558,767
2,220,229
2,890,831
2,405,511
1,743,189
1,589,237
114
162
212
176
128
116
56,631
48,786
41,805
31,509
21,345
28,418
37,866
57,206
88,283
79,240
84,018
53,453
Relative
Total, all kinds.
Head.
Relative.
7,055,172
153
123
114
91
68
46
62
82
124
192
172
183
116
7,395,419
5,371,679
4,826,924
5,080,442
5,267,246
5,329,041
5,536,053
5,414,327
6,555,100
6,962,317
6,589,826
7,078,875
160
125
105
110
114
115
120
117
142
151
143
153
SHIPMENTS.
1918.
December
1919.
January
February
March
April
May
June
July
August
September
October
November
December
588,425
145
787,461
163
445,987
89
37,072
90
1,858,945
129
589,362
404,296
423,819
506,835
530,153
503,354
515,071
650,252
872,043
1,154,995
993,148
686,325
145
107
104
125
130
124
127
160
214
284
244
169
988,035
881,507
925,802
748,437
787,009
1,005,505
691,283
455,705
501,856
654,755
788,107
1,003,682
204
195
191
154
162
208
143
94
104
135
163
207
357,386
240,815
289,742
319,625
290,803
465,776
694,942
1,352,252
1,849,958
1,382,419
945,992
682,439
71
51
58
63
58
93
138
269
367
275
188
136
56,282
47,829
41,837
29,974
18,865
25,322
32,836
49,996
83,264
80,828
78,889
55,831
137
125
102
73
46
62
80
122
203
197
192
136
1,991,065
1,574,447
1,681,200
1,604,871
1,626,830
1,999,957
1,934,132
2,508,205
3,307,121
3,272,997
2,806,136
2,428,277
139
118
117
112
113
139
135
175
195
169
FEBRUARY,
175
FEDERAL RESERVE BULLETIN.
1920.
Exports of certain meat products.
[Department of Commerce.)
[Monthly average, 1911-1913=100.J
Beef, canned.
1918.
December..
Beef, pickled
and other cured.
Beef, fresh.
Hams and shoulders, cured.
Bacon.
Pounds.
Relative.
Pounds.
Relative.
Pounds.
Relative.
Pounds.
7,776,239
1,174
34,161,848
2,754
3,786,847
142
126,437,385
1,907 17,436,495
1,318 13,729,993
1,358 14,651,276
437 21,639,915
856 14,872,987
992 15,212,094
814 8,680,524
437 8,075,366
183 7,285,951
271 31,178,216
210 15,694,002
285 6,061,769
1,406
1,186
1,181
1 744
1,199
1,226
700
651
587
2,513
1,265
489
6,030,937
3,635,120
3,749,394
2,673,681
2,957,163
4,768,308
3,320,564
2,494,113
3,523,887
3,402,422
2,997,652
3,135,069
226
146
140
100
111
178
124
93
132
127
112
117
101,000,122 603
114,842,525
735
151,086,397
902
141,814,255 847
68,957,465
412
172,441,100 1,030
117,679,193
703
84,150,778 502
57,179,511 341
56,462,312 337
65,288,694
390
58,982,754 352
1919.
January
12,636,060
February... 8,151,723
March
8,997,973
April
2,896,759
May
5,669,232
June
6,574,766
July
5,392,104
August
2,894,361
September.. 1,213,709
October.... 1,793,784
November.. 1,393,238
December.. 1,886,835
Relative.
Pounds.
Relative.
755 38,939,568
54,846,433
49,283,053
85,712,426
109,569,968
49,707,874
96,854,552
47,452,834
40,147,727
18,209,239
13,090,972
16,844,285
15,688,297
Pickled pork.
Lard.
Pounds.
Relative. Pounds.
Relative.
261 37,724,398
86
2,025,778
46
37,850,338
68,972,779
97,239,435
86,555,951
55,807,234
114,328,804
68,163,734
48,968,628
36,960,364
41,016,518
42,106,339
63,645,722
86
168
221
197
127
260
155
111
84
93
96
145
2,273,683
1,956,362
2,141,508
2,494,454
2,095,072
3,131,639
2,392,515
2,117,796
2,792,439
3,804,290
4,934,696
4,125,550
51
47
48
56
47
71
54
48
63
86
101
93
367
354
574
734
333
649
318
269
122
88
113
105
Receipts of grain and flour at 17 interior centers.
[Chicago, Cleveland, Detroit, Duluth, Indianapolis, Kansas City, Little Rock, Louisville, Memphis, Milwaukee, Minneapolis. Omaha, Peoria,
St. Louis, Spokane, Toledo, Wichita; receipts of flour not available for Cleveland, Detroit, Indianapolis, Louisville, Omaha, Spokane,
Toledo, and Wichita.]
[Compiled from reports of trade organizations at these cities.)
[Monthly average, 1911-1913=100.J
Wheat.
Corn.
Rye.
Oats.
Barley*
Total grain.
Rela- Bushels. Rela- Bushels. Rela- Bushels. Rela- Bushels. Rela- Bushels.
Bushels. tive.
tive.
tive.
tive.
tive.
1918.
Dec'ber... 55,257,503
20518,008,635
1919.
J a n u a r y . . 24,652,641
February. 14,049,055
13,768,496
March
11,208,305
April
11,625,657
May
8,125,034
June
49,612,115
July
A u g u s t . . . 80,714,559
Sept'ber... 69,953,295
October.. 51,006,164
Nov'ber.. 35,729,832
Dec'ber... 30,582,779
9128, 731,387
5613, 034,852
431,797
51
4218, 301,721
43 10' 301,200
30 21, 098,146
184 12, 549,219
503,282
299
260 16, 267,145
189 12, 490,107
133 14, 606,137
113 23, 983,657
1
Flour.
Total grain1 and
flour.
RelaRelative. Barrels. tive. Bushels.
Relative.
6,807,076
615
8,792,752
123119,639,388
154 1,935,524
99128,349,246
148
128 22,1,945 659 114 5,615,054
6215, i, 961,423
85 \2] 406,029
85
60 17,,076,822
85 4,,, 955,130
82 20!i, 063^ 678 99 5,498,493
4619! i, 206,465
95 4:\, 280,911
94 24i,576,968
122 2;!, 791,618
56 25,i, 233,109 125 3;, 105,486
38 29,,774,582 14: 3,824,263
72 2(1,721,030 132 5,446,371
56 2 J, 323,974 120 4,472,397
88 2,579,579
",699,925
6517,
77 2,876,636
10715,592,282
507
233
448
497
387
252
281
345
492
404
233
260
943,78?
556,594
11 723,691
9i 634,405
416,141
12; 878,517
627,091
638,8711
294,256
369,326!
582,873
3,769:859!
125 90,SS8,523
007,953
98
955,936
163
706,602
134
830,374
117
470,283
180
127,020
120
93 129; 455,557
74 123, 682,097
61 ~~ 661,96*
198,346
50
805,213
53
11711,396,888
7211,032,368
1,485,320
78 I!
83 1,990,349
i;
69 2,447,200
2,
8911,894,599
127 1,572,420
166f3 2,283,145
1599 3,275,034
3!
124 3,073,034
95 3,541,957
99 2,371,262
71 97,174,519
56 56,653,609
76 67,639,876
102 73,663,173
125 64,842,774
97 77,995,979
80 106,202,910
117131,738,702
167137,510,750
157 112,271,510
181 90,137,153
121 87,475,892
112
70
78
85
75
90
122
152
159
129
104
101
80 30,773,422
152
Flour reduced to its equivalent in wheat on basis of 4* bushels to barrel.
176
FEBBUABY, 1920.
FEDERAL RESERVE BULLETIN.
Shipments of grain and flour at 14 interior centers.
[Chicago, Cleveland, Detroit, Duluth, Kansas City. Little Rock, Louisville, Milwaukee, Minneapolis, Omaha, Peoria, St. Louis, Toledo, Wichita;
shipments offlournot available for Cleveland, Detroit, Louisville, Omaha, Toledo, and Wichita.]
Wheat.
Corn.
Oats.
Rye.
Barley.
Total grain.
Total grain and
flour.*
Flour.
Rela- Bushels. Rela- Bushels. Rela- Bushels. Rela- Bushels. Rela- Bushels. Rela- Barrels. Rela- Bushels. RelaBushels. tive.
tive.
tive.
tive.
tive.
tive.
tive.
tive.
1918.
Dec'ber... 36,932,880
1919.
January.. 9,934,531
February. 8,876,844
March
14,857,872
April
30,764,328
May
31,901,327
June
8,151,872
July
12,423,422
August... 36,986,491
Sept'ber.. 37,730,048
October.. 25,813,130
Nov'ber.. 20,877,718
Dec'ber... 17,383,075
239
9,996,598
7123,850,316
6413,488,569
9519,769,237
6513,603,691
53 16,183,222
111 16,019,086
55117,069,617
6115,638,317
.5,628,503
7,919,623
47 16,651,580
50 16,705,015
4715.582,081
8112,433,716
62 8,649,063
7.544,393
199 15,708,842
207 7,784,931
53 8,629,052
81 8.102,275
240 5' 135,459
245 6,622, 779
167 7,116,502
135 6,609,629
11311,509,719
157 2,136,274
302 4,300,906
130 794,028
112 4,718,631
404,365
61 6,006,178
526 6,049,703
107 3,720,930
3,
8,143,580 1,150 6,632,763
112 7,525,794 1,063 6,677,508
103 2,740,593
387 9,588,195
103 1,546,100
218 9,133,000
1181,436,377 203 5,028,674
110 2,317,740 327 2,943,167
110 1,426,528
202 3,087,951
103 3,110,541
439 2,827,956
82 2,255,139 319 2,624,376
110 77,216,974
156 4,241,406
125 96,303,301
149
704,996
540,141
356,120
268,599
959,177
748,029
833,304
506,624
265,314
149,126
007,925
206,025
99 2,796,463
811,932,258
98 3,039,020
156 3,532,772
144 4,320,146
91 3,130,828
95 2,589,176
135 3,805,273
134 4,787,300
110 5,975,261
n 5,604,616
99
5,
94 4,470,22
83
61
90
104
128
92
76
112
141
176
165
132
95
77
96
144
140
91
90
129
136
125
115
103
121
165
155
170
171
246
234
129
75
79
73
67
61,289,0080
46,235,3302
62,031,7710
93,166,0073
90,399,g834
58,836,7746
58,484,5596
83,630,3353
87,808,1164
81,037,8801
74,328, (597
(i
66,321,5574
* Flour reduced to its equivalent in wheat on basis of 4£ bushels to barrel.
Receipts of grain and flour at nine seaboard centers.
[Boston, New York, Philadelphia, Baltimore, New Orleans, San Francisco, Portland (Oreg.), Seattle, Tacoma; receipts of flour not available for
Seattle and Tacoma.)
[Compiled from reports of trade organizations at these cities.]
[Monthly average, 1911-1913=100.]
Wheat.
Corn.
Oats.
Rye.
Barley.
Total grain.
Total grain and
flour.*
Flour.
RelaReia- Bushels. Rela- Bushels. RelaRelaRelaRelaRelaBushels. tive.
tive. Bushels. tive. Bushels. tive. Bushels. tive. Barrels. tive. Bushels. tive.
tive.
1918.
Dec'ber... 24,221,863
1919.
January., 9,768,801
February. 7,805,811
13,789,851
March
12,581,074
April.
14,157,852
May..
10,260,075
June..
July..
5,806,227
August. - -26,902,757
Sept'ber-. 28,010,858
October.. 14,755,827
Nov'ber.. 9,152,534
192
1,273,489
36 9,817,268
207 1,107,437
779
1,915,831
115 38,335,888
169 3,258,924
312 53,001,046
193
78
66
109
100
li:
81
46
214
222
117
73
1,411,366
783,263
636,127
1,089,425
1,588,571
1,051,177
901,842
815,132
512,072
507,065
438,147
9,275,187
4,713,794
3,254,914
4,604,521
5,642,176
30 10,249,644
6,959,186
5,676,984
5,345,464
4,335,038
3,998,525
195 566,191
106 2.!, 299,664
69 3'1,880,424
97 5,069,529
119 7,061,048
216 3".1,670,055
1461 ,479,951
64,510
119
113 535,701
911 , 718,701
84 1,391,024
398
1,734
2,731
3,568
4,970
2,583
1,042
45
377
1,210
98
1,738,326
995,454
2,285,954
1,853,372
3,561,412
6,564,620
9,723,852
4,993,395
2,171,521
796,839
851,651
105
64
138
112
215
396
586
301
131
48
51
22,759,871
16,597,986
23,847,270
25,197,921
32,011,059
31,795,571
24,871,058
38,452,778
36,575,616
22,113,470
15,831,881
100 2,026,246
781,302,061
105 1,644,676
1112,549,370
J
" 2,535,547
1412,
140 2,340,158
110 ',514,135
169 ,385,762
161 2,306,213
97 2,521,329
2;
70 1,552,796
194
134
157
244
243
224
145
133
221
241
149
31,877,9978
22,457,2
261
31,248,3
312
36,670,0
086
43,421,0
021
42,326,2282
31,684,6666
44,688,7
707
46,953,5575
33,459,4
451
22,819,4
463
116
88
114
134
158
154
116
163
171
122
83
1
Flour reduced to its equivalent in wheat on basis of 4| bushels to barrel.
FBBBUAJtT, 1920.
177
FEDEBAL KESEBVE BULLETIN.
Stocks of grain at eight seaboard centers at close of month.
[Boston, New York, Philadelphia, Baltimore, New Orleans, Newport News, Galveston, San Francisco.]
[Compiled from reports of trade organizations at these cities.]
[Bushels.]
1918.
December.
Oats.
Rye.
Barley.
Total grain.
302,980
6,074,067
2,248,272
2,767,606
25,752,619
645,317
417,520
346,543
464,503
448,020
214,079
265,196
155,491
172,254
82,240
155,490
5,495,937
6,110,159
5,650,120
5,335,971
4,047,059
5,475,856
3,760,063
2,216,989
1,901,510
1,898,271
2,504,833
1,972,696
1,735,876
1,920,348
3,434,873
1,690,860
514,252
867,491
578,250
516,142
483,270
1,264,494
3,047,346
3,930,465
4,403,665
5,420,013
4,263,510
6,783,798
5,528,176
5,414,183
4,061,830
3,079,360
2,351,012
26,526,787
24,829,633
25,053; 148
22,104,352
18,362,611
17,168,145
15,978,570
25,761,182
27,823,176
30,865,383
25,004,559
Wheat.
Corn.
14,359,694
,365,491
635,613
732,472
448,992
913,162
180,160
557,644
396,269
171,440
322,242
728,730
1919.
January
February
March
April
May
June
July
August
September
October
November
NOTE.—Figures for San Francisco include also stocks at Port Costa and Stockton.
Cotton.
[New Orleans Cotton Exchange.]
[Crop years 1911-1913-100.]
Sight receipts.
Bales.
August
September
October
November
December
January
February
March
April
M^y
Relative.
Bales.
1918-19.
Season, total
August
September
October
November
December
Relative.
1919-20.
at ports and
American spinners' Stocks
interior towns at
takings.
close of month.
Overland movement.
Port receipts.
Bales.
Relative.
401,860
988,156
1,632,921
1,710,666
1,709,734
1,392,468
768,444
601,858
494,106
536,139
32
79
130
136
136
111
61
48
39
43
226,242
536,190
779,371
641,283
690,782
705,493
477,696
460,066
462,363
502,082
50,482
42,028
158,768
217,450
157,038
157,270
106,368
75,489
79,700
99,041
48
40
151
207
149
149
101
72
76
11,724,104
78
6,735,898
61
1,528,262
313,301
584,776
1,779,927
2,369,177
2,070,597
25
47
142
189
165
238,271
260,698
1,029,331
1,178,443
1,069,693
26
28
112
128
116
49,630
26,138
110,202
245,237
167,004
Relative.
Bales.
Relative.
Bales.
94
372,394
352,025
697,623
1,007,892
929,491
705,353
383,157
202,556
149,566
193,016
82
77
154
222
205
155
84
45
33
42
1,306,868
1,644,690
2,189,007
2,745,815
2,697,141
2,637,908
2,689,379
2,604,549
2,484,852
2,417,631
Ill
140
186
233
229
224
228
221
211
205
121
5,850,715
107
1,928,959
164
47
25
105
233
159
302,238
300,001
621,784
1,155,324
1,138,401
67
66
137
254
251
1,412,048
1,501,805
2,340,881
2,616,383
2,765,040
120
127
199
222
235
California shipments of citrus and deciduous fruits.
Oranges.
Carloads.
December
January
February
March...
April
May
June
July
August
September
October
November
December
1918.
r.
1919.
Lemons.
Relative.
3,565
146
3,120
3,180
5,113
5,450
5,888
3,648
2,568
1,785
1,840
2,706
3,257
3,592
139
209
226
241
149
105
73
75
111
133
147
Total citrus fruits.
Carloads.
Relative.
Carloads.
722
178
4,287
150
267
131
174
221
256
371
375
256
108
102
141
109
67
3,651
3,838
6,010
6,488
7,389
5,168
3,606
2,221
2,254
^27!
128
144
211
228
259
181
127
78
79
115
130
136
109
198
67
36
276
896
4,199
6,601
6,781
5,529
2,141
197
631
658
897
1,038
1,501
1,520
1,038
436
414
572
442
-271
Relative,
Total
deciduous
fruits.
Carloads.
178
FEBKUABT, 1920.
FEDERAL RESERVE BULLETIN.
Sugar.
[Data of International Sugar Committee for ports of Boston, New York, Philadelphia, Savannah, New Orleans, Galveston, San Francisco.J
[Tons of 2,240 pounds.]
December
1918.
92,785
123,091
13,774
243,806
389,815
355,710
450,938
471,205
197,145
337,420
361,010
387,548
446,685
66,189
122,757
106,889
185,315
201,301
1919.
January
February
March
April
May
Raw stocks
at close of
month.
Meltings.
Receipts.
Receipts.
June
July
August
September
October
November
December
1919.
Raw stocks
at close of
month.
Meltings.
429,617
394,557
333,686
352,345
279,962
183,084
73,504
493,293
435,247
356,048
385,618
279,348
180,425
113,917
151,692
115,341
85,650
55,644
55,333
55,073
14,587
[Data for ports of New York, Boston, Philadelphia.)
[Weekly Statistical Sugar Trade Journal.)
[Tons of 2,240 pounds. Monthly average 1911-1913=100.)
Tons.
Raw stocks at
close of month.
Meltings.
Receipts.
Relative.
Relative.
Tons.
Receipts.
Relative.
Tons.
1918.
December
58,751
32
92,000
50
11,490
7
1919.
January
February
March
April
May
172,054
283,172
232,471
318,492
325,736
93
165
126
173
177
147,000
229,000
261,000
277,000
307,000
80
134
142
151
167
36,544
90,716
62,187
107,582
126,318
21
53
36
62
73
Tons.
1919.
June
July
August
September
October
November
December
Relative.
271,875
264,782
246,419
262,137
233,650
154,674
96,342
Raw stocks at
close of month.
Meltings.
148
144
134
142
127
84
52
Tons.
Relative.
313,000
292,000
229,000
292,000
216,000
177,000
126,765
171
159
125
159
118
96
69
Tons.
85,193
57,975
75,394
45,531
63,181
40,855
10,432
Relative.
49
34
44
26
37
24
6
Naval stores.
[Data for Savannah, Jacksonville, and Pensacola.]
[In barrels.]
[Compiled from reports of trade organizations at these cities.]
Spirits of turpentine.
Spirits of turpentine.
Rosin.
Stocks at
Stocks at
close of Receipts. close of
month.
month.
December
January
February...
March
April
May
1918.
1919.
127,888
53,196
280,182
125,541
121,676
97,450
75,546
47,115
34,835
22,154
14,338
19,493
50,435
285,808
259,974
243,813
225,657
229,404
Rosin.
Stocks at
Stocks at
Receipts. close of Receipts. close of
month.
month.
June
July
August
September
October
November
December
1919.
31,904
27,747
21,013
21,574
19,367
18,757
17,252
33,733
30,656
24,756
27,021
27,389
28,741
30,924
63,456
77,062
74,402
72,616
67,080
77,125
77,221
221,612
235,707
203,812
190,580
186,231
204,281
200,333
FEBRUARY, 1920.
179
FEDERAL RESERVE BULLETIN.
Lumber.
[From reports of manufacturers' associations.]
[M feet.]
Western pine.
Southern pine.
NumShipber of Producments.
mills. tion.
1918.
December...
1919.
January
February...
March
April
May
June
July
August
September.,
October
November..
December...
204
310,068 322,831
200
195
198
203
205
204
206
204
202
201
202
330,137
328,069
378,752
397,005
414,899
360,084
401,939
417,036
416,640
421,025
391,347
325,241
309,494
361,125
397,677
460,238
426,193
466,786
423,002
372,727
356,124
344,717
Douglas fir.
North Carolina pine.
Eastern white pine.
Num- Produc- Ship- Num- Produc- Ship- Num- Produc- Ship- Num- Producber of tion.
of
ber of tion.
ber of tion.
ments. mills.
ments. ber
ments. mills.
mills.
mills. tion.
Ship-
63,315
63,823
127
222,389
221,720
799
14,176
26,728
21,570
21,49 40,354
24,48 46,037
27,48 71,426
43,49 124,341
45,48 140,037
49 156,561
48 148,533
48 152,748
51 154,102
52 156,828
51 110,525
51 65,989
68,910
71,103
81,328
97,679
127,730
139,923
140,680
140,236
138,537
143,252
117,472
93,377
122
122
120
114
111
115
114
118
126
124
126
129
225,688
228,031
254,650
264,623
345,984
300,410
268,634
416,422
332,905
419,108
324,511
227,331
227,129
238,035
255,544
266,308
388,803
327,364
301,050
397,290
261,797
339,321
241,301
176,935
7,565
6,802
7,118
11,431
24,548
29,741
27,382
20,247
16,913
12,888
2,786
4,776
15,172
17,081
17,525
14,020
17,136
26,525
22,470
26,839
22,574
18,139
21,596
17,840
28,629
25,806
32,110
22,369
14,375
20,733
22,326
27,177
33,146
24,055
23,896
18,034
22,672
21,877
17,393
28,865
34,191
30,159
35,468
22,079
19,048
26,241
27,46
27
RECEIPTS AND SHIPMENTS O F LUMBER AT CHICAGO.
[Chicago Board of Trade.]
i
[Monthly average, 1911-1913=100.]
Shipments.
Receipts.
Mfeet.
December
January
February
March
April
May
1918,
1919
163,908
Relative.
77
134,604
97,511
124,040
144,253
162,365
M feet.
Shipments.
Receipts.
Relative.
Mfeet.
60,831
79
47,922
45,585
46,902
59,055
66,001
62
64
61
77
86
June
July
August
September
October
November
December
Relative.
Relative.
Mfeet.
1919.
184,862
200,148
170,385
205,909
208,638
176,972
226,617
80,762
90,134
87,953
93,120
95,674
70,175
79,553
107
105
118
115
121
125
92
104
Coal and coke.
[Bituminous coal and coke, U. S. Geological Survey; Anthracite coal, Anthracite Bureau of Information.)
[Monthly average, 1911-1913=100.)
Bituminous coal, es- Anthracite coal, shiptimated monthly ments over 9 roads.
production.
Short tons.
December
January
February
March
April
May
June
July
August
September
October
November
December
1918.
1919.
Coke, estimated monthly production.
Beehive.
By-product.
__.
Total.
Relative. Long tons. Relative. Short tons. Relative. Short tons. Relative.
40,184,000
108
5,736,260
102
2,255,296
41,485,000
31,566,000
33,719,000
32,164,000
37,547,000
37,055,000
42,754,000
42,880,000
47,403,000
54,579,000
20,303,000
36,612,000
112
91
91
87
101
100
115
116
128
147
55
934,241
871,932
938,908
224,715
711,915
619,591
052,334
144,144
687,401
560,150
971,671
138,460
105
74
70
93
101
100
108
109
101
117
106
109
2,401,567
1,822,894
1,768,449
1,316,960
1,135,840
1,170,752
1,512,178
1,733,971
1,790,466
1,551,980
1,680 775
1,721,000
2,562,048
6,779,482 !
I
I
Short tons.
Relative,
291
4,817,344
138
257
12,772,392
122
180
PEBRUABY, 192a.
FEDERAL RESERVE BULLETIN.
Movement of crude petroleum in United States.
[U. S. Geological Survey.]
[Barrels of 42 gallons each.]
Marketed.
Barrels.
December
January
February
March
April
May
1918.
1919.
Marketed.
Stocks at end
of month
Relative. (barrels).
28,071,000
146
30,196,000
26,910,000
30,234,000
29,386,000
29,985,000
158
150
158
153
156
Barrels.
June
July
August
127,777,000 September
126,982,000 October
129,213,000 November
130,729,000 December
130,321,000
1919.
Relative.
31,644,000
33,894,000
33,862,000
33,667,000
33,319,000
32,114,000
32,508,000
128,311,000
165
177
177
176
174
168
170
Stocks at end
of month
(barrels).
133,995,000
140,093,000
136,467,000
137,131,000
135,461,000
131,601,000
129,022,000
Total output of oil refineries in United States.
[Bureau of Mines.]
1918.
November.
January
February...
March
April
May
June
July
August
September.
October
November..
1919.
Gas and fuel Lubricating
(gallons).
(gallons).
Crude oil run
(barrels).
Gasoline
(gallons).
Kerosene
(gallons).
27,411,6
312,968,640
169,278,105
604,403,494
72,178,602
26,967,332
25,232,876
27,866,775
27,775,217
30,267,227
28,920,764
31,202,522
32,362,057
32,601,044
33,682,968
32,213,754
303,
283,
311,
319,
354,
338,
342,
326,
339,
363,
710,556
518,194
306,755
807,838
472,377
336,985
491,757
846,167
582,564
456,747
667,570
158,501,260
164,181,787
170,290,930
183,453,728
190,345,026
178,974,224
205,727,289
219,502,888
199,244,293
227,104,346
214,829,925
589,630,056
553,853,753
574,774,156
588,808,408
652,166,738
632,205,805
638,185,469
685,702,461
683,409,674
680,158,446
663,309,514
68,304,613
62,503,072
67,063,995
70,954,128
76,442,252
64,636,153
67,037,414
72,920,214
70,236,692
78,658,410
75,962,212
15,222,401
270,072,011
397,804,012
583,777,918
132,923,478
15,380,
14,820,
15,106.
15,184,
16,372,
16,775,
15,304,
15,131,
13,925,
14,091,
13,983,
383,
458,
546,
593,
594,
593,
514,
434,
371,
354,
332,393,181
303,062,436
294,677,623
276,356,837
244,635,631
252,542,434
279,855,061
296,065,646
311,843,057
329,160,795
347,070,560
646,411,414
692,816,000
749,067,806
807,895,498
788,740,572
811,790,637
817,809,519
830,329,785
862,135,385
828,745,452
791,052,991
158,370,431
152,297,163
165,495,254
170,122,088
173,754,109
175,384,775
173,884,303
170,572,819
158,967,070
152,536,736
149,193,143
STOCKS AT CLOSE OF MONTH.
1918.
Nov. 30
1919.
Jan. 31
Feb. 28
Mar. 31
Apr. 30
May 31
June 30
July 31
Aug. 31
Sept. 30
Oct. 31
Nov. 30
212,692
449,187
062,429
616,170
035,688
896,610
919,358
531,446
125,419
160,071
3783 133,185
FEBRUARY, 1920.
181
FEDERAL RESERVE BULLETIN.
Iron and steel.
[Great Lakes iron ore movements, Marine Review; pig iron production, Iron Age; steel ingot production, American Iron and Steel Institute.]
[Monthly average, 1911-1913=100; iron ore, monthly average, May-November, 1911-1913-100.]
Iron ore shipments
from the upper
Lakes.
Pig iron production
Steel ingot r produc-
tiori.
Unfilled orders U. S.
Steel Corporation
at close of month.
Gross tons. Relative. Gross tons. Relative. Gross tons.. Relative. Gross tons. Relative.
1918.
December
January
March
April
.
M v
j i me
.
July
August
September
October
November..
December
6 836
1919.
1,412,239
6,615,341
7,980,839
9,173,429
4,423,133
8,178,483
6,201,883
3,152,319
. .
109
132
151
73
135
102
52
3 433 617
148
2 992 306
125
7 379 152
140
3,302,260
2,940,168
3,090,243
2,478,218
2,108,056
2,114,863
2,428,541
2,743,388
2,487,965
1 863 558
2,392,350
2,633,268
143
136
133
107
91
91
105
118
107
80
103
114
3,082,427
2,688,011
2,662,265
2,239,711
1,929,024
2,219,219
2,508,176
2,746,081
130
120
110
93
80
92
104
114
6,684,268
6,010,787
5,430,572
4,800,685
4,282,310
4,892,855
5,578,661
6,109,103
6,284,638
6 472 668
7,128,330
8,265,366
127
114
103
91
81
93
106
116
119
123
135
157
Imports of pig tin.
[Department of Commerce.]
[Monthly average, 1911-1913=100.J
Pounds.
December.
January..
February.
March
April
May
1918.
Pounds.
5,887,063
1919.
1919.
65 I June
ll July
August
September..
October .
November.
December.
8,461,444
6 271,977
8,284,970
504 903
449,270
112,000
113,120
9,872,459
11,087,403
16,210,512
15,233,671
12,940,125
Relative.
1
1
109
122
178
168
142
Raw stocks of hides and shins.
[Bureau of Markets.]
[In pieces.]
Jan. 31
Feb. 28
Mar.31
Apr.30
May 31
June 30
July 31
Aug. 31
Sept. 30
Oct. 31
Nov.30
Dec. 31
1919.
NOTE.—Figures for Dec. 31 are provisional.
Cattle
hides.
Calfskins.
5,922,514
5,791,095
5,108,516
5,256,384
4,549,004
4,696,332
4,966,081
5,498,844
6,158,289
6,436,765
6,918,534
7,206,911
1,294,949
1,266,021
1,219,935
1,845,254
2,273,368
2,285,015
2,389,368
2,145,320
2,055,084
2,007,208
1,844,737
2,059,794
Kipskins.
515,523
429,704
415,882
421,474
386,244
558,033
554,516
585,269
947,546
1,097,039
1,088,173
1,107,891
Goat.
Kid.
Cabretta.
4,239,381
5,683,585
7,987,277
12,080,410
15,121,868
16,991,195
15,589,944
18,263,446
13,930,167
15,302,942
14,248,671
15,981,468
245,815
227,513
181,952
724,209
1,246,075
2,521,016
1,964,828
880,276
823,740
2,239,604
331,389
726,819
601,686
843,344
559,576
1,520,522
2,044,524
1,697,754
2,767,694
2,348,769
2,655,774
2,574,499
2,684,084
2,092,029
Sheep and
lamb.
6,844,680
9,033,943
8,264;864
9,095,816
8,039,531
8,118,702
6,815,160
7,126,885
8,661,215
10,122,930
9,398,712
9,138,679
182
FEBRUARY, 1920.
FEDEKAL RESERVE BULLETIN".
Textiles.
[Silk, Department of Commerce; cotton, Bureau Of the Census; wool, Bureau of Markets; idle machinery, January-September, 1918, inclusive,
National Association of Wool Manufacturers.]
[Cotton, monthly average crop, years 1912-1914=100; silk, monthly average 1911-1913=100.]
Cotton consumption.
Bales.
Percentage of idle woolen machinery on first of month
to total reported.
Cotton
spindles
• active
during
month.
Wool consumption
(pounds).
Sets of
Wider Under cards. Combs.
than 50- 50-inch
Woolen. Worsted.
inch reed reed
space. space.
Relative.
Imports of raw silk.
Spinning spindles.
Looms.
Pounds.
Relative.
1918.
December
472,908
105
33,657,960
32,355,081
22.5
24.9
13.8
17.8
16.1
27.4
2,680,863
131
1919.
January
February
March
April
May
June
July
August
September
October
November
December
556,721
433,516
433,720
475,753
487,998
474,407
509,793
502,536
491,313
555,344
490,698
511,585
124
103
96
106
109
105
113
112
109
123
109
114
33,856,472
33,282,593
32,642.376
33,213,026
33,556,011
33,943,405
34,184,407
34,187,310
34,216,662
34,307,367
34,483,775
34,594,214
32,573,970
23,186,818
29,320,063
39,159,945
45,084,834
48,849,892
54,973,093
48,938,476
52,985,961
60,018,415
52,428,854
55,566,253
40.3
52.3
58.1
48.4
36.6
29.6
22.0
22.1
19-9
16.0
14.8
13.9
32.6
41.5
42.4
38.9
32.9
26.6
26.0
24.9
22.8
20.7
18.2
19.1
32.2
38.7
39.1
26.5
17.1
15.4
9.7
9.4
8.1
8.2
7.6
10.5
30.7
39.8
47.8
34.2
22.5
12.8
7.6
6.5
5.5
5.9
5.3
5.3
36.5
41.1
41.8
28.4
16.8
15.2
8.9
8.9
7.9
7.7
6.7
8.4
37-5
48.6
52.7
36.1
25.8
21.1
13.5
10.9
12.8
7.2
6.7
6.2
1,461,827
1.742,812
l', 784,412
2,988,838
4,878,646
3,848,354
5,202,407
3,802,500
6,755,271
3,955,845
4,841,407
3,576,585
71
91
87
146
238
188
254
186
330
193
237
175
14.5
18.5
8.8
7.2
9.1
10.2
1920.
Production of wood pulp and paper.
[Federal Trade Commission.]
[Net tons.)
1918.
December..
1919.
January
February...
March
April
May
Wood
pulp.
Newsprint.
273,973
100,935 60,525
283,270
116,154
103,248
114,746
116,278
105,819
278,675
284,984
294,067
Book.
70,443
62,616
63,699
76,821
Paper
board.
Wrapping.
Fine.
127,523 49,064
26,721
50,490
45,480
48,069
48,158
56,579
27,675
24,600
23,514
22,470
25,010
140,859
125,208
136,175
138,802
151,651
Wood
pulp.
1919.
June
July
August
September.
October....
November.
December..
Newsprint.
Book.
277,142 114,896 71,938
260,685 113,929 75,613
260,987 113,413 82,737
266,915 111,434 81,024
308,710 125,216 89,440
147,672 116,603 84,085
306,617 122,781 88,779
Paper
board.
Wrapping.
152,957 60,656
169,593 63,769
189,782 64,861
184,897 63,353
202,524 67,110
182,940 63,394
174,649 62,288
Fine.
27,122
30,036
33,122
31,923
34,808
32,468
31,014
Sale of revenue stampsfor manufacturers of tobacco in the United States (excluding Porto Rico and Philippine Islands).
[Commissioner of Internal Revenue.]
Cigars.
Cigarettes.
Large.
Small.
Small.
Chewing
and
smoking
tobacco.
1918.
October
Number.
594,764,527
Number.
63,111,160
Number.
3,027,300,975
Pounds.
39,440,893
1919.
January
February
March...
518,706,482
476,329,947
549,098,351
72,458,974
60,138,630
84,493,873
3,079,212,253 29,308,616
3,126,274,662 27,472,269
3,845,079,275 29,227,678
Cigars.
1919.
April
May
June
July
August
September
October
Cigarettes.
Large.
Small.
Small.
Number.
510,357,494
551,659,749
576,976,572
569,908,339
533,227,393
575,777,829
677,622,154
Number.
73,314,273
57,611,547
48,855,070
47,500,287
54,953,647
53,735,960
64,170,793
Number.
2,650,182,742
2,767,699,400
3,140,393,217
3,585,030,983
3,918,403,687
4,283,247,387
5,028,875,337
Chewing
and
smoking
tobacco.
Pounds.
29,883,710
33,340,102
31,312,150
33,838,667
35,568,246
36,623,005
39,335,546
183
FEDERAL RESERVE BULLETIN.
FEBRUARY, 1920.
Output of locomotives and cars.
[Locomotives, United States Railroad Administration; cars, Railway Car Manufacturers' Association.]
Output of cars.
Locomotives.
Domestic Foreign
com- Domestic. Foreign.
shipped. pleted.
1918.
December..
Locomotives.
Number.
3,402
Number.
11,278
8,172
6,623
5,978
7,777
4,573
3,635
4,657
5,795
7,373
8,533
11,807
11,280
11,773
15,150
13,106
1919.
January
February...
March
April
May
282
135
258
197
207
84
164
128
36
31
Domestic Foreign
com- Domestic. Foreign.
shipped. pleted.
Total.
Number. Number. Number.
281
177
7,876
Output of cars.
1919.
June
July
August
September.
October
November.
December..
Number.
Number.
160
121
160
111
89
39
103
44
73
173
51
55
23
42
Total.
Number. Number. Number.
1,785
5,307
7,092
2,777
6,936
9,713
18,509
5,015
23,524
19,980
4,302
24,282
10,445
3,715
14,160
8,967
2,622
11,589
4,506
2,428
6,934
Vessels built in United States, including those for foreign nations, and officially numbered by the Bureau of Navigation.
[Monthly average, 1911-1913=100.]
Gross Relative.
Number. tonnage.
December
January
February
March
April
May
1918,
153
283,359
1,173
132
135
186
201
250
264,346
271,430
298,005
375,605
395,408
1,094
1,203
1,233
1,554
1,636
1919,
Gross Relative.
Number. tonnage.
June
July
August
September
October
November
December
1919,
272
245
238
202
210
143
149
422,889
397,628
455,338
378,858
357,519
347,051
294,064
1,750
1,645
1,884
1,568
1,479
1,436
1,213
Tonnage of vessels cleared in the foreign trade.
[Department of Commerce.]
[Monthly average, 1911-1913=100.]
Net tonnage.
;Net
Percentage Relaof
Rela- Ameri- tive.
tive. can to
total.
American. Foreign.
Total.
1918.
December.
1,141,319 2,053,517
3,194,836
82
35.7
141
1919.
January...
February..
March
April
May
1,166,391 1,896,123 3,062,514
1,262,487 1,671,070 2,933,557
1,161,416 1,737,171 2,898,587
1,744,753 2,058,220 3,802,973
2,424,837 2,469,194 4,894,031
78
75
75
98
126
38.1
43.0
40.1
45.9
49.5
151
170
158
181
196
1919.
June
July
August
September
October
November
December
tonnage.
American. Foreign.
Total.
511,501
920,247
2,957,249 2,797,818
2 627,480 2 481,676
2 645,778 2 073,560
2 251,871 1 910,489
2 043,675 1 733,923
4, 850,821
5 282,818
5 755,067
5 109,156
4 719,338
4 162,360
3 ,777,598
2, 339,320
2, 362,571
2
2
Percentage Relaof
Rela- Ameri- tive.
tive. can to
total.
125
136
148
131
121
107
97
48.2
44.7
51.4
51.4
56.1
54.1
54.1
191
177
203
203
222
214
214
Net ton-miles, revenue and nonrevenue.
[United States Railroad Administration.]
December
January
February
March...
April
May
1918.
1919,
33,639,389,000
30,383,169,000
25,681,943,000
28,952,925,000
28,629,739,000
32,440,708,000
June
July
August
September
October
November
December
1919,
31,953,366,000
34,914,294,000
36,361,653,000
38,860,311,000
40,343,750,000
32,539,248,000
33,462,298,000
184
FEDERAL RESERVE BULLETIN".
FBBEUAHT, 1920.
Commerce of canals at Sault Ste. Marie.
[Monthly average, May-November, 1911-1913—100.]
EASTBOUND.
Grain other than
wheat.
Bushels.
Relative.
1918.
December.
4,176,041
9,370,374
6,694,901
7,100,008
5,284,741
2,918,591
4,351,059
8,654,903
4,183,727
Bushels.
Flour.
Relative.
Barrels.
22,164,222
3,663,693
1919.
April
May
June
July
August
September..
October
November..
December..
Wheat.
105
75
80
59
33
49
97
Iron ore.
Relative.
594,320
16,729,000
29,096,116
6,402,051
2,391,840
1,487,218
10,180,991
22,252,196
17,388,391
7,807,045
Relative.
79,307
910,524
1,031,630
915,420
935,700
917,420
1,544,510
1,402,260
430,090
151
33
12
8
53
116
90
Short tons.
Total.
78
89
79
81
79
133
121
1,139,326
6,622,227
8,004,897
8,912,609
4,727,994
7,978,562
6,059,450
3,299,532
40,880
Short tons.
Relative.
918,496
112
135
150
80
134
102
56
1,756,266
7,895,542
8,554,979
9,343,396
5,080,651
8,525,794
7,063,120
4,201,881
409,576
113
122
133
72
122
101
60
WESTBOUND.
Soft coal.
Hard coal.
Short tons.
Relative.
Short tons.
Total freight.
Total.
Relative.
Short tons.
Relative.
Short tons.
Relative.
1918.
December
April
May
June
July
August
September
October
November
December
9,300
57,750
84,262
1,002,758
1919.
142,864
248,263
227,200
344,462
185,387
231,030
498,505
466,135
69,143
73
111
60
75
161
150
415,824
2,239,738
2,266,984
2,037,265
1,189,558
1,156,841
1,848,511
307,241
117
118
106
62
60
96
16
616,897
2,670,784
2,664,437
2,572,756
1,529,310
1,677,123
2,650,799
932,615
89,616
2,373,163
107
107
103
61
67
107
37
10,566,326
11,219,416
11,916,152
6,609,961
10,202,917
9,713,919
5,134,496
499,192
111
118
125
70
107
102
54
FDBBUAET, 1920.
185
FEDERAL RESERVE BULLETIN.
BANK TRANSACTIONS DURING DECEMBER-JANUARY.
In the table below are shown debits to individual account for the four weeks ending
January 21, 1920, and for the corresponding
period ending a year earlier, as reported by
over 150 of the country's more important
clearing houses. There is also given a recapitulation, by Federal Keserve districts, for
those centers that have reported data on a
uniform basis for each of the eight weeks
under review.
Total debits to individual account during
the week ending December 31, 1919, were
about 625 millions less than during the immediately preceding week. End-of-year interest
and dividend payments, together with the
redemption by the Treasury of the outstanding portion oi loan certificates maturing January 2 and the flotation of a new issue of tax
certificates, were mainly responsible for the
increase during the following week to 10J
billions, the high mark of the period. A
decline of over 300 millions from this large
total is shown for the next week under review,
followed by a partial recovery of about 190
millions for the fourth week, ending January
21, during which the Treasury redeemed the
outstanding portion of loan certificates maturing January 15.
Debits to individual account for the period
under review range from 16 to 42 per cent
higher than a year earlier. Figures for a year
ago show a large increase for the second week
as compared with the first week of the period,
due largely to the end-of-year interest and
dividend payments.
Debits to individual account at clearing-house banks.
[In thousands of dollars.]
Week endingFederal Reserve district.
No. 1—Boston:
Bangor
Boston
Fall River
Hartford
Holyoke
Lowell
New Bedford
New Haven
Portland
Providence
Springfield
Waterbury
Worcester
No. 2—New York:
Albany
Binghamton
Buffalo
New York
Passaic
Rochester
Syracuse
No. 3—Philadelphia:
Altoona
Chester
Harrisburg
Johnstown
Lancaster
Philadelphia
Reading;
Scranton
Trenton
Wilkes-Barre....
Williamsport....
Wilmington
York....
No. 4—Cleveland:
Akron
Cincinnati
Cleveland
Columbus
Dayton
Erie
Greensburg
Lexington
Oil City
Pittsburgh
Jan. 21,
1920.
Jan. 14,
1920.
3,395
355,216
9,383
24,654
4,198
5,700
9,045
20,565
7,595
45,842
19,335
7,687
19,630
3,614
350,074
11,424
23,413
4,467
5,612
8,994
19,571
8,217
44,842
16,529
8,024
18,497
17,832
4,082
76,336
5,412,377
5,513
31,333
16,047
16,217
4,608
75,031
5,347.254
6,111
31,706
17,894
2,715
5,497
4,239
3,275
5,881
387,236
5,451
12,169
11,183
8,188
3 806
8,942
4,046
3,689
5,120
4,100
3,220
5,633
361,896
5,620
15,312
11,599
8,765
3,860
12,905
4,010
28,832
69,333
157,648
33,013
12,573
7,569
3,725
13,470
2,874
190,525
26,774
63,121
179,193
30,973
12,481
6,975
3,068
12,486
2,942
180,701
Jan. 7,
1920.
Week endingDec. 31,
1919.
Jan. 22,
1919.
Jan. 15,
1919.
Jan. 8,
1919.
Dec. 31,
1918.
2,903
342,182
9,864
21,281
3,869
6,822
7,603
16,130
7,206
49,463
17,077
6,903
17,710
2,808
293,855
6,957
20,473
3,358
5,346
6,272
17,067
2,744
241,858
6,338
17,486
3,027
4,283
6 422
18,045
2,940
288,651
6,800
24,828
3,276
5,219
6,618
17,879
35,796
11,143
7,059
18,904
31,749
9,907
7,067
14,171
34,612
13,836
10,200
17,890
3,320
205,667
6,995
18,313
2,760
5,185
5,118
14,884
8,421
27,781
9,765
6,184
13,367
19,860
3,582
67,075
5,388,508
5,356
29,046
16,762
19,562
2,809
59,953
4,298,679
4,193
24,249
14,454
16,065
2,917
62,656
3,805,735
3,481
24,022
14,043
26,719
3,341
72,506
4,843,795
4,206
32,220
20,859
18,011
2.497
54,'988
3,562,715
3,955
21,621
12,226
2,805
5,356
3,579
3,311
5,914
385,293
5,474
15,705
11,764
8,130
3,632
11,143
4,319
2,812
3,976
3,500
2,694
4,786
345,200
4,433
12,426
12,440
8,473
3,504
9; 257
3,680
2,202
4,725
4,721
2,918
3,977
327 248
3,205
11,573
10,207
6,420
3,224
10,108
3,007
2,548
4,658
6,183
3,064
3,812
286,392
4,462
11,717
8,938
5,970
3,121
8,266
2,984
2,767
5,158
5,981
3,273
4,335
362,478
3,382
14,510
9,695
8,002
3,158
7,023
3,495
2,192
4,197
5,938
2,503
3,248
228,384
2,414
10,883
8,855
6,096
2,727
15,854
2,672
25,760
63,680
221,120
32,285
14,438
7,437
3,779
11,517
3,202
193,928
22,364
77,276
186,198
31,240
11,674
5,864
1,675
7,093
2,464
195,539
16,122
61,537
132,446
23,255
11,204
6,911
2,588
9,373
2,836
189,723
14,620
52,840
133,582
22,119
12,126
5,893
2,712
10,040
2,889
159,276
14,433
63,163
154,467
24,520
13,110
7,288
2,740
8,129
3,818
166,352
13,555
54,782
143,687
19,597
12,366
6,305
2,755
4,045
1,918
150,902
3,908
346,266
10, Oil
34,702
4,118
5,837
9,959
22,357
8,101
45,836
16,526
8,135
19,718
24,507
4,482
74,716
5,545 691
5,680
36,705
22,190
186
FEBBDAEY,
FEDERAL RESERVE BULLETIN.
1920.
Debits to individual account at clearing-house banks—Continued.
[In thousands of dollars.]
Week e n d i n g Federal Reserve district.
No. 4—Cleveland—Continued.
Springfield
Toledo
Wheeling
Youngstown
No. 5—Richmond:
Baltimore
Charleston
Charlotte
Columbia
Norfolk
Raleigh
Richmond
No. 6—Atlanta:
Atlanta
Augusta
Birmingham
Chattanooga.
Jacksonville
Knoxville
Macon
Mobile
Montgomery
Nashville
New Orleans
Pensacola
Savannah
Tampa
Vicksburg
No. 7—Chicago:
Bay City
Bloomington
Cedar Rapids...
Chicago
Davenport
Decatur
,
DesMoines
Detroit
Dubuque
Flint
Fort Wayne
Grand Rapids
•
Indianapoiis
•
Jackson
Kalamazoo
•
Lansing. . . . . . . . . . - - • • • • • • • •
Milwaukee.*"""
Peoria
Rockford
Sioux City
South Bend
Springfield
Waterloo
•
No. 8—St. Louis:
E vansville
•
Little Rock
Louisville
•
Memphis . . . . . . . . . - - - - • - • - - •
St. Louis
No. 9—Minneapolis:
Aberdeen
Billings
Duluth
Fargo
Grand Forks
Great Falls
Helena
Minneapolis
St. Paul
Superior
Winona
No. 10-KansasCity:
Atchison
Bartlesville
Cheyenne
Colorado Springs
Denver
,
Joplin
Kansas City, K a n s . . . . . . . . .
Kansas City, Mo
Jan. 21,
1920.
Jan. 14,
1920.
Jan. 7,
1920.
Week e n d i n g Dec. 31,
1919.
Jan. 22,
1919.
Jan. 15,
1919.
Jan. 8j
1919.
Dec. 31,
1918.
4,109
33,009
8,714
14,072
3,757
30,141
8,290
17,072
4,423
31,868
9,920
18,698
4,212
27,327
7,751
12,869
3,115
23,482
8,267
12,351
3,111
20,690
6,667
16,513
3,290
29,957
7,266
19,714
3,521
23,680
6,457
11,700
111,390
11,744
11,326
10,286
22,899
5,900
35,642
105,421
12,796
11,485
8,062
20,429
6,700
31,202
124,618
11,782
11,769
9,480
24,795
6,900
33,848
103,898
10,701
7,929
7,246
16,943
5,800
28,308
85,574
7,342
6,500
6,291
16,951
2,800
28,976
75,922
7,849
7,300
7,792
17,103
4,250
25,184
94,712
9,210
7,700
8,259
18,615
5,580
27,743
71,030
5,200
5,016
5,828
16,371
4,000
24,632
35,379
13,255
16,347
13,380
14,048
7,377
9,314
9,634
6,933
25,885
91,781
2,809
23,556
5,926
2,592
35,800
15,921
16,857
15,096
14,048
7,139
10,224
9,960
7,350
29,164
102,289
2,500
26,230
6,540
2,551
40,794
13,365
21,577
14,699
15,045
8,578
8,891
11,424
6,322
29,572
109,342
3,112
22,438
6,434
2,677
32,309
8,895
14,452
10,485
12,581
6,313
6,315
7,363
5,330
21,905
81,042
1,939
21,275
4,935
1,716
33,370
6,442
12,376
9,031
9,506
5,700
5,377
7,621
4,618
19,559
71,969
1,844
14,553
4,969
2,321
25,930
7,428
13,319
9,609
9,609
5,660
5,363
6,502
6,292
23,648
78,465
1,946
13,723
4,733
2,069
27,557
8,605
18,419
12,266
13,849
7,150
5,746
8,018
5,437
23,924
74,701
2,055
17,652
3,495
2,658
22,433
5,871
11,157
8,613
8,944
4,400
3,907
2,711
8,505
806,752
6,852
4,709
22,280
181,862
3,389
13,000
7,517
23,558
40,497
5,088
4,581
5,870
74,922
11,918
5,716
16,870
3,230
4,135
3,563
3,538
3,109
7,305
767,844
7,189
4,378
23,872
146,076
4,153
5,700
7,539
19,487
40,733
4,560
4,659
5,597
72,744
10,510
7,977
16,584
3,421
4,590
3,470
3,893
3,481
9,847
721,374
10 545
5,176
21,350
3,097
8,000
6,806
20,497
35,602
4,349
4,618
6,131
79,946
12,664
7,794
14,684
3,982
5,100
3,701
2,945
2,302
7,967
683,870
6,594
3,584
18,038
113,823
2,519
8,876
6,940
17,717
31,292
3,721
4,652
6,015
50,970
8,650
5,237
12,659
4,065
5,211
3,390
2,866
2,803
5,739
640,873
7,244
3,342
19,959
102,211
2,035
5,456
5,220
18,208
32,181
2,603
3,118
3,494
621,317
6,905
3,530
17,167
112,736
2,004
3,699
4,587
18,018
32,966
3,387
2,669
6,000
671,265
8,858
2,967
17,746
110,846
2,400
4,782
5,413
17,836
33,499
2,706
2,160
3,917
524,333
6,741
2,281
14,397
84,843
1,750
2,894
3,052
3,497
58,277
12,184
4,752
18,321
3,309
3,985
3,393
3,344
3,565
53,839
12,623
4,461
17,904
3,133
4,378
3,039
4,050
3,876
59,475
14,211
4,930
2,833
2,678
46,591
10,099
3,677
5,491
4,248
3,410
2,959
2,836
2,797
5,825
10,462
41,756
50,258
169,946
6,359
11,136
41,373
48,975
164,782
6,704
10,039
47,604
55,294
178,999
5,387
8,121
34,460
39,180
142,134
3,126
31,108
144,850
40,452
36,069
149,425
5,293
8,588
40,705
39,150
174,877
4,800
6,766
41,436
28,482
134,711
1,597
2,429
19,084
3,116
1,554
2,693
2,403
97,751
36,804
2,024
1,130
1,914
2,416
18,299
3,021
1,939
3,214
2,639
103,142
40,310
1,896
1,360
2,062
2,851
16,087
3,328
2,178
2,895
3,096
88,359
37,961
2,036
2,217
1,409
2,280
14,246
2,766
1,669
2,095
2,437
93,795
38,058
1,795
1,287
1,287
2,037
31,924
2,365
1,384
2,893
2,711
80,296
44,421
1,995
815
1,254
2,181
34.780
2,523
1,597
3,118
3,892
77,668
33,730
1,775
1,254
1,642
2,400
41,287
2,717
1,683
3,529
3,237
94,098
35,504
2,285
1,039
2,498
34,563
1,559
1,162
3,071
1,835
77,442
39,379
1,669
570
3,819
2,132
3,054
58,476
3,732
4,622
110,001
690
2,864
2,063
3,333
60,646
3,907
4,481
94,924
684
3,290
2,579
3,739
52,063
3,904
3,700
79,946
514
3,463
2,335
3,209
39,099
2,993
3,734
90,756
2,723
1,703
2,548
2,904
2,154
30,107
3,143
4,936
98,183
2,124
29,295
3,758
2,628
33,460
3,404
3,634
94,446
1,752
27,618
2 755
2,816
70,093
3,900
7,500
42,649
87,604
6,297
3,385
19,637
59,866
1,638
13,986
4,287
1,620
15,661
28,023
FEBRUARY, 1920.
187
FEDERAL RESERVE BULLETIN.
Debits to individual account at clearing-house banks—Continued.
Week e n d i n g -
Federal Reserve district.
Jan. 21,
1920.
No. 10—Kansas City—Continued.
Muskogee
Oklahoma City
Omaha
,
Pueblo
,
St. Joseph
Topeka
Tulsa
Wichita
No. 11—Dallas:
Albuquerque
Austin
Beaumont
Dallas
El Paso
"**
Fort Worth..""
Galveston
Houston
San Antonio...!
Shreveport
Texarkana
!
Tucson
Waco
"
\
No. 12—San Francisco:
Berkeley
Boise
Fresno
Long Beach
LosAngeles
Oakland
Ogden
\
Pasadena
Portland
Reno
Sacramento
Salt Lake City
San Diego
San Francisco
San Jose
Seattle
Spokane
Stockton
Tacoma
Yakima
Jan. 14,
1920.
Jan. 7,
1920.
Week ending—
Dec. 31,
1919.
Jan. 22,
1919.
Jan. 15,
1919.
Jan. 8,
1919.
Dec. 31,
1918.
7,855
21,574
64,569
4,094
25,856
5,989
28,031
13,957
5,753
19,437
66,099
4,811
24,249
5,995
29,781
14,841
8,567
20,951
58,523
7,026
22,544
7,363
28,447
17,409
6,099
16,580
50,639
5,055
13,282
6,143
32,333
10,861
3,569
15,188
63,484
4,498
28,071
5,023
20,090
8,300
4,143
15,538
47,491
3,737
24,316
5,154
20,071
7,691
3,786
16,496
47,991
4,618
23,664
5,181
20,842
9,389
3,105
12,623
48,049
3,991
12,961
3,764
24,606
7,231
1,961
4,450
4,785
57,987
9,070
24,497
12,559
38,777
9,241
10,771
2,380
1,624
4,250
2,014
4,300
5,085
55,024
9,825
24,484
7,944
38,953
9,334
10,120
1,844
1,660
4,876
2,153
4,303
4,900
59,090
9,951
27,084
10,649
39,025
9,516
10,183
2,332
1,964
5,650
1,581
3,997
4,133
54,135
8,230
33,841
10,727
37,595
8,032
7,067
1,816
1,349
3,700
1,360
3,742
4,802
31,251
6,405
18,931
7,878
24,294
1,574
3,818
4 139
34,704
5,615
19,436
8,854
36,345
1,639
3,930
5,231
38,879
7,036
18,019
12,559
27,214
1,324
3,930
3,391
30,944
5,244
17,033
7,528
24,140
5,324
1,517
1,595
3,034
7,652
1 249
1,521
3,554
6,758
1,935
1,512
4,275
4,606
1,260
1,198
3,526
3,018
3,470
11,258
5,570
106,205
20,541
5,106
5,626
50,295
3,305
14,788
20,372
8,033
226,592
5,896
51,187
13,907
6,439
10,013
3,117
3,461
4,011
11,793
5,773
95,980
20,314
4,551
5,722
47,142
2,886
16,132
19,947
8,376
215,137
6,501
47,676
13,418
7,010
11,244
3,440
3,652
3,707
13,453
6,067
99,068
19,815
5,098
5,422
44,931
3,902
19,817
20,146
7,490
198,313
7,464
51,315
14,121
6,187
10,015
3,858
2,227
3,966
9,892
4,704
84,790
16,359
5,071
4,057
45,303
2,804
15,924
19,363
7,286
189,300
5,453
45,260
11,868
5,592
9,460
3,999
2,937
11,853
4,353
2,831
39,691
1,083
14,208
17,785
5,732
182,947
7,196
2 607
56,377
13,107
2,870
2,577
35,172
1,852
13,882
15,048
5,645
148,389
3,199
7,346
3,212
66,551
13,605
5,184
3,013
42,848
2,145
15,459
17,096
6,493
161,114
2,239
5,613
2,077
53,012
11,466
4,270
1,960
37,935
2,021
12,284
16,087
3,834
142,378
43 839
9,861
4,001
12,314
1,757
49,040
8,782
4,000
11,146
1,957
49,612
9,730
4,154
11,871
2,438
42,036
7,926
4,373
11,378
1,628
2,600
6,014
2,331
61,230
RECAPITULATION BY F E D E R A L R E S E R V E DISTRICTS.
[In thousands of dollars.]
Week e n d i n g -
Week ending—
Federal Reserve district.
Number
of centers
included.
Jan. 21,
1920.
Jan. 14,
1920.
Boston
New York
Philadelphia.
Cleveland
Richmond —
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas C i t y . .
Dallas
San Francisco.
524,650
5,563,520
462,628
579,466
209,187
278,216
1,239,474
278,247
169,455
355,629
173,111
565,824
515,061
5,498,821
445,729
577,974
196,095
301,669
1,153,891
272,625
178,790
341,121
166,129
540,552
Total...
148 10,413,049
10,201,620
Dec. 31,
1919.
Jan. 22,
1919.
Jan. 15,
1919.
Jan. 8,
1919.
466,425
642,055
223,192
314,270
1, 138,292
298,640
160,853
317,472
177,284
532,725
501,807
5,530,189
417,181
593,546
180,825
236,855
994,657
229,282
160,550
284,246
168,171
484,998
429,038
4,423,899
393,535
503,210
154,434
209,256
940,586
230,007
171,313
289,469
110,133
424,430
363,097
3,928,919
352,115
463,078
145,400
214,296
920,526
237,455
162,518
258,687
128,461
382,584
432,749
5,003,646
433,237
518,247
171,819
231,532
987,359
268,613
188,382
272,087
128,987
425,070
319,339
3,676,013
295,963
455,270
132,077
177,570
769,565
216,195
164,217
224,268
104,124
362,517
10,512,552
9,782,307
8,294,322
7,557,136
9,061,728
6,897,118
Jan. 7,
1920.
527,373
5, 713,971
Dec. 31,
1918.
188
FEDERAL, RESERVE BULLETIN.
FEBBUAET, 1920.
DISCOUNT AND OPEN MARKET OPERATIONS OF THE FEDERAL RESERVE BANKS
DURING DECEMBER AND THE CALENDAR YEAR 1919.
Discount operations of the Federal Reserve cultural and live-stock paper, totaled $12,Banks during the month of December totaled 380,465, compared with $11,838,214 for No$7,290,872,591, compared with $7,414,498,375 | vember and $9,645,742 for October. The
during November, and $6,215,083,531 during average maturity of all the paper discounted
December, 1918. The totals are exclusive of during the month works out at 11.52 days,
bills discounted for other Federal Reserve compared with 11.36 days in November, 9.54
Banks, which totaled 117 millions for the days in October, the month preceding rate
month under review, 58 millions in November, revision, and 10.13 days for the entire calendar
and 107.1 millions in December, 1918.
year. About 53 per cent of the December disDiscount operations during the month at the counts took the 4h per cent rate and nearly 40
'New York bank show a decrease since Novem- per cent the 4 | per cent rate, while in November of 584.7 millions, a larger increase under ber about 78 per cent of all discounts took the
the head of 15-day war paper being offset to 4 | per cent and only 8 per cent the 4f rate.
some extent by increases in other classes of As a result the average rate of discount
discounts; smaller reductions in discount oper- charged during December works out at 4.67
ations for the month are also reported by the per cent, as against 4.53 per cent in November,
Atlanta, St. Louis, and Dallas banks. On 4.19 per cent in October, and 4.26 per cent for
the other hand, the eastern banks outside of the calendar year.
New York report considerably larger discount
Holdings of discounted paper on the last
operations during December than for the month Friday in December totaled $2,194,878,000,
before.
compared with a total of $2,214,139,000 of disTotal discounts for the year 1919 were counted bills held on the last Friday in No79,174 millions, compared with 39,753 millions vember and $1,702,938,000 held on the correin 1918, the large increase for the year just sponding date in December, 1918. . About 68.9
passed being due exclusively to the growth of per cent of the holdings at the close of the
the volume of war paper discounted, from month under review was made up of war paper,
33,390 to 74,188 millions. Of the 1919 total compared with about 78 per cent at the close
the New York share of war paper was over 91 of November and 82.2 per cent about the close
of 1918. Discounted trade acceptances held
per cent, as against 67 per cent in 1918.
For the month of December war paper con- about the end of December totaled $33,697,000,
stituted about 85 per cent of the total paper compared with $27,694,000 at the close of Nodiscounted, as against 90 per cent for the pre- vember and $15,985,000 on the last Friday in
ceding two months. Discounts of trade ac- 1918. Holdings of agricultural paper totaled
ceptances during December totaled $23,560,893 $24,825,000, as against $27,023,000 at the end
as against $21,923,920 in November. Of the of November and $29,384,000 about a year
larger total, $834,193 were based upon trans- previous, while holdings of live-stock paper
actions in the foreign trade, while the re- were $26,243,000, compared with $25,527,000
mainder were domestic trade acceptances. at the close of the previous month and $27,An increase from $2,052,898 to $62; 145,690 in 335,000 at the close of the previous year. Of
the discounts of bankers' acceptances is due the total agricultural paper held about 80 per
apparently to the rise in open-market rates cent represented the combined share of the Chiwhich made it more profitable
for member cago and Kansas City banks, while of the total
banks to discount bankers7 bills than to sell live-stock paper holdings over 72 per cent is
them in the open market. Discounts of credited to the Kansas City and Minneapolis
ordinary commercial paper, because of the banks.
partial elimination of the differential between
During the month under review the memwar paper and other paper, show an increase bership of the system shows a net increase
from $613,002,521 to $982,387,419, or of nearly from 9,009 to 9,069 institutions, while the
60 per cent.
number of member banks accommodated
Over 92 per cent of the December discounts through discount of paper rose from 3,649 in
were made up of 15-day paper; i. e., bills November to 3,659 in December. In the folmaturing within 15 days from date of dis- lowing exhibit are shown the number of memcount or rediscount with the Federal Reserve ber banks in each Federal Reserve district at
Bank. Six-month paper, composed of agri- the end of November and December, also the
FBBBUABY, 1920.
189
FEDEEAL KESERVE BULLETIN.
number in each district accommodated during compared with $3,686,930 in November. About
each of these two months.
60 per cent of the larger amount was drawn in
the foreign trade. Nearly one-half of the
Number of mem- Number of member banks in disber banks accom- acceptances bought was composed of paper of
trict.
modated.
more than 60 days' maturity at the time of purFederal Reserve Bank.
chase by the Federal Reserve Banks, the
NovemDec. 31. Nov. 30. Decemaverage maturity of all the bills bought being
ber.
ber.
57.11 days in December, compared with 55.55
Boston
265 days in November and 48.36 days in October.
432
430
277
434
405
748
753
New York .
375 About 27 per cent of the bills purchased in
405
678
676
Philadelphia...
843
282
841
276
Cleveland .
December were charged a rate of 4£ per cent,
252
584
255
583
Richmond
. . .
427
185 while 38 per cent of the bills purchased took the
173
427
Atlanta .
586
1,375
613 4J per cent rate.
1,366
Chicago
The average rate of discount
205
211
536
533
St. Louis...
921
280 charged on these bills works out at 4.84 per
915
270
Minneapolis
354
1.032
365
1,039
Kansas City
235 cent, compared with 4.47 per cent in Novem758
200
758
Dallas
192
700
213
723
San Francisco..
ber and 4.26 per cent in October. On the
3,649 last of December the Federal Reserve Banks
Total
3,659
9,069
9,009
held a total of $574,103,000 of purchased bills,
Bills purchased in the open market during compared with $501,910,000 on the last of
December, largely by the New York and Boston November and $292,197,000 at the close of
banks for their own account and for account of 1918. Of the most recent total, all but
other Federal Reserve Banks, totaled $400,- $7,734,000 were bankers' acceptances, of which
708,093, compared with $340,695,505 pur- $405,339,000 were bills accepted by member
chased in November and $335,261,712 in banks, $65,334,000 bills accepted by nonOctober. Of the total bills purchased during member banks and trust companies, $55,537,the month, $392,933,917 were bankers' accept- 000 bills accepted by private banks, and
ances, of which about 78 per cent were based $40,159,000 bills accepted by foreign banks and
upon foreign-trade transactions. Bills pur- their agencies. Of the $7,734,000 of purchased
chased during the year 1919 totaled 2,825.2 trade acceptances, held at the end of the year,
millions, compared with 1,809.5 millions in $2,540,000 were domestic trade acceptances
1918. Over 98 per cent of the total bills pur- and $5,194,000 foreign-trade acceptances. The
chased during the more recent year were latter are largely acceptances drawn by exporters in the Far East, and are reported for
bankers' acceptances.
Purchases of trade acceptances reported for the most ^art by the Boston, New York, and
the month by four banks totaled $5,080,924, San Francisco banks.
Total investment
Federal Reserve Bank.
operations of each Federal Reserve Bank during the month of December, 1919 and 1918.
Bills discount- Bills bought Municipal
in open
ed for memwarrants.
market.
ber banks.
$526,878,389
3,881,496,274
844,024,277
326,554,767
374,952,860
151,148,637
505,552,032
179,379,614
95,743,302
147,156,135
59^601,991
198,384,313
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
United
States
bonds.
1 $250
$39,438,586
210,272,820
2,678,026
27,622,483
6.743,120
6;019,116
42,017,209
5,381,753
1,547,985
10,337,197
940,460
47,709,338
UOO
3,250
4J per cent liberty bonds.
2
3,350
Total investment operations.
December,
1919.
$570,574,325
$4,257,350
555,628,000 4,647,397,094
852,038,303
5,336,000
67,199,000
421.376,250
382^096,080
400,100
2 846
157,168,599
639,572,241
92,003,000
3,860,750
188.622,117
102;839,787
5,548,500
5,406,500
162,899,832
64,117,451
3:575,000
15;150,500
261,244,151
$4,257,000
555,628,000
5,336,000
67,199,000
400,000
2846
92,002,500
3,857,500
5,548,500
5,406,500
3,575.000
15,150,500
$100
3 500
850
400,708,093
Total, D e c , 1919.. 7,290,872,591
36,850
155,733,438
Total, D e c , 1918... 6,215,083,531
Total, 12 months
ending Dec. 31,
$1,000 1,328,975
1919
79,173,971,930 2,825,177,002
Total, 12 months
ending Dee. 31,
1918
39,752,933,847 1,809,538,795 1,709,602 73,996,313
1
United United States
Total
States certificates of United
States
Victory indebtedness. securities.
notes.
758,361,346
758,365,546
1,747,880,000 1,747,916,850
December,
1918.
$456,202,416
5,508,007,483
516,200,472
339,369,955
299,680,044
172,763,597
296,880,658
140,181,080
17,623,363
86,837,955
95,104,214
189,882,582
8,449,946,230
8,118,733,819
377,600 4,732,188,846 4,733,895,421 86,733,045,353
5,776,352,160 5,850,348,473
U. S. war savings certificate.
3
3$ per cent Liberty bonds.
47,414,530,717
190
FEDERAL RESERVE BULLETIN.
B^EBRUAEY, 1 9 2 0 .
Average amount of earning assets held by each Federal Reserve Bank during December, 1919, earnings from each class of
earning assets and annual rate of earnings on basis of December, 1919, returns.
Average daily holdings of the several classes of earning assets.
Federal Reserve Bank.
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City.
Dallas.....'....
San Francisco.
Total: December, 1919
December, 1918
Year, 1919
Year, 1918
Discounted
bills.
Purchased
bills.
United States
securities.
Total.
$170,522,598
759,737,480
206,825,892
162,522,519
106,920,025
95,766,349
293,668,441
72,393,861
65,132,000
90,817,568
48,653,660
84,060,930
$29,844,159
160,543,353
4,442,339
57,490,252
13,946,473
13,917,379
101,259,035
33,645,456
16.582,000
17;475,801
9,481,245
91,331,625
$22,478,212
89,578,445
32,541,239
27,950,279
13,468,697
16,044,867
46,547,213
18,495,070
8,736,000
23,843,311
13,097,226
14,463,482
$222, 844,969
1,009,859,278
243,809,470
247,963,050
134,335,195
125,728,595
441,474,689
124,534,387
90, 450,000
132, 136,680
71, 232,131
189,856,037
\ 2,157,021,323
i 1,749,155,925
1 1,908,197,564
1,140,053,148
549,959,117
344,329,057
325,231,333
288,422,390
327,244,041
204,807,343
254,053,087
128,232,322
3,034,224,481
2,298,292,325
2,487,583,982
1,557,058,490
Earnings from—
Federal Reserve Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total: December, 1919
December, 1918
Year, 1919
Year, 1918
Discounted
bills.
Purchased
bills.
United States
securities.
Total.
$656,614
2,953,443
799,565
630,522
413,606
386,501
1,029,649
281,720
267,799
381,614
199,719
331,981
$116,750
616,327
16,940
217,235
54,109
56,122
387,816
129,365
64,457
68,106
37,241
356,537
$39,692
176,593
59,194
52,425
22,987
28,308
82,067
32,525
14,889
48,503
24,882
26,427
$813,056
3,746,363
875,699
900,182
490,702
470,931
1,499,532
443,610
347,145
498,222
261,842
714,945
8,332,733
6,379,428
80,768,144
48,343,852
2,121,005
1,273,946
13,986,778
11,939,786
608,492
418,321
5,761,300
3,828,801
11,062,229
8,071,695
100,416,307
64,126,661
Calculated annual rate of earnings from—
Federal Reserve Bank.
Purchased
bills.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total: December, 1919
December, 1918
Year, 1919
Year, 1918
4.54
4.33
4.30
4.14
United States
securities.
Total.
Per cent.
2.08
2.32
2.14
• 2.21
2.01
2.01
2.08
2.07
2.01
2.40
2.23
2.15
Per cent.
4.30
4.37
4.22
4.27
4.30
4.27
4.32
4.17
4.52
4.44
4.32
4.43
2.19
2.40
2.26
2.99
4.29
4.14
4.04
4.12
FBBBUART, 1920.
191
FEDERAL RESERVE BULLETIN.
Bills discounted during the month of December, 1919, distributed by classes; also average rates and maturities of bills discounted by each Federal Reserve Bank.
Member banks' collateral
notes.
Customers'
paper secured byGovernment
war obligations.
Secured byGovernment
war obligations.
Trade acceptances.
Otherwise
secured.
Bankers'
acceptances.
$30,340,410
58,374,365
32,334,764
9,213,946
6,510,418
2,899,987
4,089,135
6,325,716
1,269,847
2,960,765
269,305
2,321,457
$445,343,550
3,321,651,381
708,969,108
261,223,690
345,054,060
128,959,975
340,611,100
130,880,580
.49,327,350
101,066,255
53,925,419
158,271,500
$361,155 !$3,297,357
2 8,229,306
543,565
213,000 2,993,438
1,457,547 2,011,330
2,775,000
693,112
326,000 1,334,383
950,000 1,662,475
896,744
151,139
12,653,860
349,753
361,200
3 344,859
590,000 1,950,176
$3,767,547
57,287,275
Total: December, 1919.. 156,910,115
December, 1918.. 139,208,402
1,898,051,245
Year: 1919
1,247,674,180
1918
6,045,283,968
5,620,088, £99
72,290,093,321
32,142,405,711
20,584,506 23,560,893
51,586,141 11,942,831
257,922.911 138,572,840
865,382,519 187,372,579
Federal Reserve Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
1 Includes $266,717 of trade acceptances in the foreign trade.
2 Includes $493,424 of trade acceptances in the foreign trade.
All other
discounts.
Average Average
maturity
rate
in
(365-day
days.
basis).
Total.
$43,768,370
$526,878,389
435,953,947
3,881,496,274
102,176,840
844,024,277
52,910,693
326,554,767
19,919,505 i
374,952,860
15,820,563 I
151,148,637
159,191,414 I
505,552,032
38,679,020
179,379,614
44,098,222 !
95,743,302
29,938,057 sI
147,156,135
4,701,208
59,601,991
35,229,580 ]
198,384,313
881,823
*i87,"445*
""21*666"
62,145,690 982,387,419 i
719,812 391,537,646 !
71,543,310 4,517,788,303 i
19,940,200 5,290,158,658 '
7,290,872,591
6,215,083,531
79,173,971,930
39,752,933,847
13.28
7.40
9.04
17.61
9.93
18.70
27.04
16.73
35.23
27.66
19.46
15.28
Per cent.
4.64
4.63
4.61
4.68
4.64
4.61
4.69
4.64
4.88
5.02
4.80
4.62
11.52
8.54
10.13
11.81
4.67
4.21
4.26
4.26
3 Includes $74,052 of trade acceptances in the foreign trade.
Bankers' and trade acceptances in the foreign and domestic trade and dollar exchange purchased during the month of December, 1919; also average rates and maturities of total bills purchased by each Federal Reserve Bank.
Bankers' acceptances.
Federal Reserve Bank.
Boston
New York..
Philadelphia
Cleveland.
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
In the
foreign
trade.
In the
domestic
trade.
Trade acceptances.
Total.
In the
domestic
trade.
In the i
foreign j Total,
trade. 1
Average Average
Dollar
Total bills maturity
rate
exchange. purchased.
in
(365-day
basis).
days.
$14,295,204 $24,202,724 $38,497,928
$540,658 i $540,658 $400,000 $39,438,586
. . . . 35,473,532 169,527,806 205,001,338 $1,594,621 1,683,609 ! 3,278,230 1,993,252 210,272,820
2,095,211
2,678,026
582,815
2,658,026
20,000 !
20,000
27,622,483
5,869,236 21,102,206
26,971,442
372,118
651,041
278,923
4,891,620
6,743,120
1,851,500
6,743,120
i
2,580,626
6,019,116
6,019,116
3,438,490
42,017,209
42,017,209
9,232,885 32,784,324
2,959,951
5,381,753
5,381,753
2,421,802
1,310,571
1,547,985
237,414
1,547,985
7,281,358 10,287,197
3,005,839
50,000 "10,337,197
838,060
940,460
940,460
102,400
133,541
9,860,550 37,007,793 46,868,343
457,454
590,995
250,666 47,709,338
Total
1
I
86,351,667
306,582,250
392,933,917
2,007,085
;
3,073,839 | 5,080,924
2,693,252
400,708,093
55.49
48.31
74.12
66.39
67.74
66.54
71.26
61.65
73.27
65.26
36.80
73.39
Per cent.
4.92
4.81
4.75
4.84
4.82
4.60
4.87
4.80
4.76
4.79
5.01
4.88
57.11
4.84
i
Amounts of bills discounted and acceptances bought by each Federal Reserve Bank during October, November, and December, 1919 and 1918, distributed by maturities.
30-dav maturities.
15-dav maturities.
Federal Reserve Bank.
Discounts.
Acceptances.
Total.
I
j
Discounts. !
$1,142,489,264 $28,447,394 $1,170,936,658 $23,828,357 $15,111,710
12,552,276,843 164,256,709 12,716,533,552 25,939,502 81,626,724
93,430
2,555,098,902
474,455 2,555,573,357 13,589,151
853,058,209 19,308,397
7,652,809
848,605,624 4,452,585
904,878,173 16,178,287 2,439,424
903,991,373
8S6,800
467,985,723 9,462,357 2,178,652
467,810,503
175,220
1,052,180,517 15,140,557 1,067,321,074 58,553,206 8,067,233
526,724,677 11,160,320 1,053,580
521,914,533 4,810,144
196,988,186 13,296,992
704,780
20,502
196,967,684
377,838,837 12,254,392
1,197,966
377,692,939
145,898
482,400
247,028,399 2,711,233
246,043,379
985,020
6,796,067 14,681,277
502,276,190
501,559,121
717,069
60-dav maturities.
Total.
Discounts.
$38,940,067
107,566,226
13,682,581
26,961,206
18,617,711
11,641,009
66,620,439
12,213,900
14,001,772
13,452,358
3,193,633
21,477,344
$45,277,294
69,887,815
26,419,745
25,756,856
15,737,307
22,248,785
109,826,298
17,719,734
34,263,493
24,207,751
7,044,382
12,223,136
Tota1
'
44,603,907
$89,387,022
152,541,416
27,045,455
48,139,797
18,809,807
29,976,231
140,768,759
21,569,777
44,353,166
26,505,381
8,107,442
56,827,043
Total, 3 months ending:
Dec. 31,1919.... 21,366,630,682 220,512,353 21,587,143,035 213,078,261 135,289,985 348,368,246 410,612,596 253,418,700
Dec. 31,1918.... 16,364,977,627 77,758,451 16,442,736,078 104,503,759 119,393,542 223,897,301 225,016,799 173,374,177
664,031,296
398,390,976
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$44,109,728
82,653,601
625,710
22,382,941
3,072,500
7,727,446
30,942,461
3,850,043
10,089,673
2,297,630
1,063,060
192
FEDERAL RESERVE BULLETIN.
FBBEUAEY,
1920.
Amounts of bills discounted and acceptances bought by each Federal Reserve Bank during October, November, and December, 1919 and 1918, distributed by maturities—Continued.
90-day maturities.
Federal Reserve Bank.
Acceptances.
Discounts.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$127,961,739
172,006,539
84,341,028
34,678,093
22,118,168
31,391,540
136,126,189
28,830,223
36,555,054
34,897,769
8,956,923
23,639,710
Over 90-day maturities.
Total.
$59,829,303 $187, 791,
179,405,315 351, 411,
88, 878,
4,537,624
74, 283,
39,605,071
31, 224,
9,106,532
41, 381,
9,990,384
54,379,009 190, 505,
33, 433,
4,603,625
49, 265,
12,710,175
41, 593,
6,695,703
10, 361,
1,405,000
85,152,448 108, 792,
Discounts. Accept$60,547
17,694
4,277
201,308
44,460
118,510
8,280,091
151,588
4,078,863
15,217,219
2,748,994
2,940,870
Total.
Total.
$60,547
17,694
4,277
201,308
44,460
118,510
$24,083 8,304,174
151,588
4,078,863
15,217,219
2,748,994
2,940,870
Total, 3 months ending:
741,502,975 467,420,189 1,208,923,164 33,864,421
Dec. 31,1919
Dec. 31,1918
543,464,168 241,526,791 784,990,959 35,675,275
Acceptances.
Discounts.
Total.
$1,339,617,201 $147,498,135 $1,487,115,336
12,820,128,393 507,942,349 13,328,070,742
5,731,219 2,685,184,322
2,679,453,103
74,093,406 1,002,643,684
928,550,278
15,505,256
958,069,595
973,574,851
20,071,702
531,031,695
551,103,397
1,364,966,301 108,553,343 1,473,519,644
579,776,398
14,317,392
594,093,790
285,162,086
23,525,130
308,687,216
464,270,070
10,337,197
474,607,267
267,504,911
3,935,480
271,440,391
547,158,904 145,154,701
692,313,605
24,083 33,888,504 22,765,688,935
zz, /oo,o»o,yao 1,076,665,310 23,842,354,245
40,574,582 17,273,638,628 616,951,268 17,890,601,579
Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks from Oct. 1 to Dec. 81, 1919.
[In thousands of dollars.]
Rediscounted or sold by Federal Reserve Bank of—
Discounted or purchased by Federal
Reserve Bank of—
Boston.
Novem- December.
ber.
October.
November.
10,043
15,022
5,065
10,097
5,061
20,032
5,014
25,002
10,056
10,081
11,386
New York
Richmond
Atlanta
St Louis
Minneapolis. . . .
Kansas City
Dallas
San Francisco
5,080
15,210
15,118
5,065
October.
Novem- December.
ber.
48,000
48,500
8,500
10,006
5,012
Total
40,473
30,304
46,475
65,098
Purchased bills
Discounted bi lls
40,473
30,304
46,475
65,098
Dallas.
December.
October.
New York
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas.
San Francisco
Total . . .
Purchased bills .
Discounted bills
San
Francisco.
48,000
48,000
57,000
57,000
26,500
26,500
26,500
34
10,043
11,386
34,000
34,000
October.
November.
5,000
5,000
19,500
1,000
10,000
19,500
1,000
October.
October.
24
10
24
10
24
10
10,000
80,500
80,500
25,000
25,000
10,000
19,500
During October, November, and December, 1919.
i36,532
5,014
10,000
34,000
15,000
December.
Chicago. Minneapolis.
1,000
Rediscounted or sold by all Federal Reserve Banks.
Decem- October. November.
ber.
515
49,500
October.
Atlanta.
31,000
Rediscounted or sold by
Federal Reserve Bank of—
Discounted or pur- Kansas
chased by Federal City.
Reserve Bank of—
Richmond.
Philadelphia.
New York.
15,022
5,080
89,712
33,674
"i.6,666"
December.
515
10,065
64 597
5,061
10,077
57,500
10,081
515
173,009
163,571
147,819
515
46,509
126,500
105,571
58,000
30,819
117,000
Total.
Purchased
bills.
549
549
25,065
25,065
5,080
10,145
10,065
290,841 " "70*341"
43,749
35,249
10,000
10,006 *"*i6,"606*
67,577
10,077
21,467
21,467
Discounted
bills.
5,000
220,500
8,500
10,000
57,500
484,399
Total during year 1919.
Total.
55,827
284,317
5,080
10,065
1,423,811
180,529
447,895
50,099
67,577
133,050
Purchased
bills.
Discounted
bills.
15,827
40,000
55,300
229,017
5,080
5,065
5,000
95,477 1,328,334
40,320
140,209
19,282
428,613
45,099
5,000
10,077
57,500
133,050
2,658,250
182,899
301,500
424,577
2,233,673
FEBRUARY, 1920.
193
FEDERAL RESERVE BULLETIN.
Discounted bills, including member banks collateral notes, held by each Federal Reserve Bank on the last Friday in December, 1919, distributed by classes.
[In thousands of dollars.]
Federal Reserve Bank.
Member banks' collateral notes.
Customers'
paper
Agricul- Live stock secured by
Govern- Secured by
tural paper. paper.
ment war
GovernOtherwise
obligations. ment war
secured.
obligations.
I
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City....
Dallas
San Francisco..
Total
Per cent
Total Dec. 30,1918.
Per cent
228
5,477
13,531
3,391
3,346
72,418
138,265
81,387
13,446
14,330
4,562
8,939
7,873
3,498
4,666
336
2,869
65,788
446,323
97,261
107,090
73,571
56,817
137,901
36,269
18,967
32,231
42,298
43,249
26,243
1.2
27,335
1.6
352,589
16.1
362,840
21.3
1,157,765
52.8
1,037,348
112
8
150
24,825
1.1
29,384
1.7
Trade acceptances.
Bankers'
acceptances.
3,766
10,262
3,633
12,966
1,172
2,621
2,128
1,790
3,358
2,404
70
393
120
23
570
148
570
638
5,653
88
357
8,255
.4
21,615
1.3
All other
discounts.
1,367
3,162
76
33,697
1.5
15,985
.9
15,479
.7
Total.
49,050
180,092
28,182
44,063
18,160
25,642
112,140
29,458
40,029
24,460
6,889
17,860
194,836
788,194
208,140
167,577
108,661
90,222
275,269
78,235
70,057
87,433
54,061
72,193
576,025
26.2
208,431
12.3
2,194,878
100.0
1,702,938
100.0
Acceptances purchased by each Federal Reserve Bank, and held on Dec. 31, 1919, distributed by classes of accepting
institutions.
[In thousands of dollars.]
Trade acceptances.
Bank acceptances.
Federal Reserve Bank.
Member
banks.
Nonmember
trust
companies.
Nonmember
state
banks.
258
487
33,519
378
6,743
196
466
1,139
3,256
19
2,040
197"
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
12,518
123,413
4,494
30,051
15,717
14,481
84,788
25,739
12,516
12,791
5,538
63,293
170
2,302
Total:
Dec. 31,1919..
Nov. 30,1919.
Oct. 31, 1919..
Dec. 31,1918..
Dec. 31,1917..
405,339
347,852
271,701
238,257
227,717
5,121
6,446
8,021
2,745
8,163
76
100
875
868
275
,
Grand
Foreign
bank
Private branches
banks.
and
Total.
Domestic. Foreign.
Total.
total.
agencies.
336
19,562
35
4,383
50
16,978
11,970
3,467
19,232
250
7,025
342
817
5,063
2,868
14
1,638
883
13,938
12,321
,
48,
16,
16.
92,
32,
12,
18,
6,
101,
60,213
48,798
36,707
10,442
3,179
55,537
55,876
42,677
20,385
20,137
40,159
36,358
28,511
13,444
7,657
566,369
495,330
387,617
285,273
266,853
792
666
50
1,964
368
1,934
5
157
1,303
2,941
20
172
1,671
4,875
20
329
18,649
202,903
5,177
48,607
16.405
16,639
92,650
32 804
12,599
18,691
6,421
102,558
758
2,540
1,646
1,740
2,536
5,194
4,934
4,998
4,388
7,734
6,580
6,738
6 924
6,383
574,103
501,910
394,355
292 197
273,236
194
FEBRUARY, 1920.
FEDERAL RESERVE BULLETIN.
OPERATION OF THE FEDERAL RESERVE CLEARING SYSTEM, DEC. 16, 1919, TO
JAN. 15, 1920.
[Amounts in thousands of dollars.]
Items drawn on banks in own district.
Federal Reserve
Bank or branch.
Located in
Federal Reserve
and Federal
Reserve branch
cities.
Located outside
Federal Reserve
and Federal
Reserve branch
cities.
Number.
Number.
Amount.
j Amount.
Items drawn on
Treasurer of
United States.
Items forwarded
to other Federal Items forwarded
to parent bank
| Number i Reserve Banks or to branch in
and their
!
of I
same district.
branches.
i business!
! days in i
j month. |
Total.
kouBt.1
NumNumber. Amount. ber. Amount.
! Amount.;
21,231 3,549,058 1,278,915!
Boston
650,122j
803,653 2,769,056! 454,031 129,880
New Fork
873,235j 2,462,376 3,713,130 2,035,570 852,986| 358,120 5,439,351 4,856,066|
2,258
460,323!
10,210
140,943!
Buffalo
301,323
44,428
94,257
148,790!
51, on 3,116,666j 1,155,533!
Philadelphia
871,595 1,651,099 232,867 132,414
,333,153
5,939 1,228,833'
34,092'
461,477}
Cleveland
982,015 188,138
212,720!
267,400
2,382
778,159!
244,8981
616,405
28,543j
91,578
Cincinnati
133,211!
150,938
8,226 1,027,700!
416,879:
718,483 108,495
32 777
Pittsburgh
300,158
276,440!
5,851 1,350,187;
531 568i
31,818
Richmond
88,122
229,400 1,230,247 296,317
4,069
698,822J
232', 550!
65,784
4,930
Baltimore
510,159
183,733
162,697
5,532
451,508!
207,397!
90,520
21,154!
Atlanta
334,969
95,385!
111,345
2,782
182,9581
40,74l!
14,837
14,524!
Birmingham
126,984
23,122
41,450l
2,513
176,2011
37,758!
14,656
18,508;
120,895
Jacksonville
36,798
20,589
1,101
206,755
63,354;
23,391
8,494'
147,231
Nashville
38,862
51,030
2,928
179,386
20,380
93,833!
14,979!
115,303
New Orleans
49,104
70,525
24,118 3,947,277 1,231,618|
Chicago
762,615
823,540! 2,987,921 383,960 196,741!
9,560
174,405, 126,581!
8,230
7,865
Detroit
159,670
109,156!
6,505
7,848 1,444,592
419,848|
St. Louie
228,911
71,502!
290,769| 1,144,179 121,231
4,901
206,309
51,092
18,450|
Little Rock....
40,692
4,656!
27,7411 160,961
4,509
340,646
105,295
31,345|
95,559
13,067'
Louisville
69,441! 232,020
3,248
221,637
19,700
78,586j
151,984
7,258;
62,395
Memphis
55,638;
2,606 1,118,214
78,464
366,146!
20,399!
Minneapolis
229,828
285,076! 867,987
6,882 2,462,325
645,550!
55,8921
Kansas City
272,741
358,8601 2,133,692 279,808
2,010
380,828
85,835'
25,708:
11,865!
300,631
Denver.,
68,332
58,117i
1,756
498,046
109,172
37,458j
385,943
Omaha.
23,753|
88,350
69,958
3,507
519,872;
1,461,150
25,938i
Dallas
145,715 1,333,246 370,650;
101,966
1,880
193,047
30,277
32,426j
133,431
El Paso
13,345
15,052!
27,190!
2,175! 282,550
54,113'
137,082
13,682! 84,596
Houston
60,872
38,256|
330,1891
40,17
44,147 175,0151 456,447
San Francisco
95,633
114,997| 316,667
l,242i
130,615
100,962
11,127
4,582
29,437!
Los Angeles
25,071
17,068!
5,969
169,623
109,201
48,446:
Portland
14,090
46,332
33,254
2,732
457,383
410,294
83,7671
9,270
SaltLakeCity...
37,S19
37,607
10,194! 226,717i
68,746i
21,272
Seattle
66,030
44,699! 139,415|
931j 185,129!
154,336j
33,026'
7,094
Spokane
23,699
19,857
Total
16,667,004 8,220, Oil 24,545,481 5,214,4111,990,362
25i 451,145
25! 964,266
25i 134,117
25i 811,930
25! 40,716
25|
6,298
25
55,722
25! 98,859
25! 151,245
26|
17,890
26|
15,972
25!
28,809
26!
16,434
24;
47,410
225,766
25;
25;
18,842
25'
3,090
25;
7,683
25'
2,062
25i
25 138,264
25 230,766
65,733
25j
25! 37,861
25* 158,035
25! 37,013
20,798
25'
23,226|
25!
2,585!
|
2,8721
7,005|
11,618!
3,902'
745,086 33,202,847)14,179,508]
Number of member
banks in district.
30,161
31,979
11,730
20,765
40,498
9,065
31,081
1,926
8,851
71,999
25,895
3,864
12,551
6,662
7,498
6,168
13,162
12,488
1,101
1,225
18,587
4,820
8,001
6,355
12,828
18,389
47,116
1,137
2,508
1,329
15,077
9,155
3,044
2,696
566
495
90,053
39,474
22,773
80,338
19,809|
20,535|
99,1561
2,703
20.993J
8.185
24,587
18,369
23,121
16,816
8,935
15,473
4,587
6,231
19,922
2,381
4,100
20,704
7,478
8,354
|3,837,934J2,016,665 763,149
322,700
j Number of nonmember
! banks on par list.
Federal Reserve Bank.
1920
1920
1919
377,488
577,221
31,818
236 682
49,780
10,812
53,733
84,879
110,818
31,082
9,027
6,039
6,892
23,958
50,655
1919
11,280
651
2,159
1,004
91,318
102,602
13,549
12,030
22,308
12,623
31,161
19,368
2,330
1,293
23,294
4,537
4,274
Number of incorporated banks other
than mutual savings
banks not on par list.
I
1920
1919
I
Boston
New York
Philadelphia.
Cleveland
Richmond...
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco
Total...
431
758 I
681 !
843 i
586 j
428
,375 i
538 ;
923 !
,040 ;
759 I
727 !
424
721
666
814
565
424
1,338
513 I
867 !
994
728
8,702
247 i
325
415 i
1,085
509 I
425 !
3,897 I
2,357
2,212 i
3,350 I
1,225 !
16,986 i
244
322
314
738
353
- 290
2,414
1,035
1,191
2,171
247
927
10,246
984
1,148
293
317
717
107 i
3,566
91
288
1,149
1,288
1,747
1,545
1,648
1,012
947
148
FBBBUARY, 1920.
FEDERAL RESERVE BULLETIN.
195
OPERATIONS OF THE FEDERAL RESERVE BANKS.
During the four weeks between December 26, in the holdings of 15-day paper, and of 27.8
1919, and January 23 of the present year invest- millions in the holdings of 30-day paper, the
ment operations of the Federal Reserve Banks share of 15-day discounts in total discounts
on the whole show a slight downward trend, showing a further decline from 68 to about 62
the holdings of both discounted and purchased per cent.
Differences in the amounts of Treasury
paper being smaller at the close of the period
than four weeks earlier. The outstanding certificate holdings represent in most part
feature of the more recent developments in the amounts of temporary certificates held by the
Federal Reserve field is the return flow of Federal Reserve Banks to cover advances to
Federal Reserve notes, which set in during the the Treasury pending receipt of funds from
first week of January and is still continuing, depositary institutions.
though at a much reduced rate. The result
Discounted paper held by the several Federal
has been a reduction b}r 213.4 millions in Reserve Banks include amounts held under
Federal Reserve note circulation, which is discount for other Federal Reserve Banks.
however partly offset by an increase of 113.3 During the period under review the amount of
millions in net deposits.
such paper, largely as the result of rediscounting
Fiscal operations of the Treasury during the by the New York bank, increased on January
period include the redemption on January 2 | 16 from 40.6 to 119.8 millions, held by six
and 15 of the outstanding balances of the two Federal Reserve Batiks. By the following
series of loan certificates issued in August of the Friday the total had been reduced to 89.1
past year and the issue under date of January millions held by the Cleveland, Atlanta,
2 of 703 millions of a new series of tax certifi- Chicago, St. Louis, and Dallas banks. As
cates maturing December 15 of the present against this considerable increase in the volume
year. These operations apparently account of interbank discounts, holdings of bankers'
for the moderate increase in discounts shown acceptances purchased from the Boston and
under January 2, and the considerable decline New York banks show a decline from 128.1 to
on the Friday following. At the closing date 48.7 millions, the smaller amount being disof the period total discounts held by the tributed among the Cleveland, Chicago, St.
Federal Reserve Banks, 2,153.4 millions, were Louis, Kansas City, Dallas, and San Francisco
41.5 millions below the total reported four banks.
weeks earlier. War paper holdings show a
As a result of the considerable gains in memmuch larger decline, from 1,510.4 to 1,386.3 bers' reserve deposits, the net deposits of the
millions, this decline being partly offset by an Federal Reserve Banks show an increase from
increase in the holdings of ordinary commercial 1.704.5 to 1,817.8 millions. On the other hand,
paper from 684.6 to 767.1 millions. Of the Federal Reserve note circulation declined from
total held at the more recent date, 629.7 3.057.6 to 2,844.2 millions, or at an average
millions, or 45.4 per cent, was secured by weekly rate of over 53 millions.
Liberty bonds; 243.3 millions, or 17.6 per cent, | Export withdrawals, sales of gold held
by Victory notes; and 513.4 millions, or about abroad, and exchange of gold for other reserve
37 per cent, by Treasury certificates, as against cash, account for a reduction of 51.8 millions in
48.5, 22.3, and 29.2 per cent of the total of gold reserves and of only 47.6 millions in total
war paper reported four weeks before.
cash reserves. This reduction in reserves and
As the result of rate revision and the partial the substantial increase in deposit liabilities
elimination of the differentials between rates was fully neutralized by the larger reduction in
on 15-day and 90-day maturities there is seen note liabilities, with the result that the reserve
an increase of 135,9 millions in the holdings ratio of the banks on both January 23 and four
of 90-day paper, as against decreases of 155.9 weeks earlier stood at 44.8 per cent.
196
PEBBUABY, 1920.
FEDERAL, RESERVE BULLETIN".
Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Jan. 2 to Jan. 28, 1920.
[In thousands of dollars.]
RESOURCES.
Boston.
Gold and gold certificates:
8,014
Jan. 2
8,309
Jan.9
8,903
Jan. 16
9,064
Jan. 23
Gold settlement fund, Federal
Reserve Board:
36,083
Jan. 2
39,226
Jan. 9
47,525
Jan. 16
54,828
Jan. 23
Gold with foreign agencies:
Jan. 2
9,002
Jan. 9
8,784
Jan. 16
8,565
Jan. 23
Gold with Federal Reserve
agents:
73,189
Jan. 2
79,895
Jan. 9
76,761
Jan. 16..
74,289
Jan. 23
Gold-redemption fund:
26,664
Jan. 2
14,850
Jan. 9
17,555
Jan. 16
19,716
Jan. 23
Total gold reserves:
153,536
Jan. 2
151.282
Jan. 9
159', 528
Jan. 16
.166,462
Jan. 23
Legal-tender notes, silver, etc.:
3,966
Jan.2
5,009
Jan.9
4,641
Jan. 16
5,004
Jan. 23
Total cash reserves:
157,502
Jan.2
156,291
Jan.9
164,169
Jan. 16
171,466
Jan. 23
Bills discounted:
Secured by Government
war obligations i—
123,914
Jan.2
105,100
Jan.9
108,935
Jan. 16
105,562
Jan. 23
All other60,742
Jan. 2
54,660
Jan.9
47,574
Jan. 16
43,258
Jan. 23
Bills bought in open market: 2
18,634
Jan. 2
38,284
Jan. 9
34,500
Jan. 16
35,424
Jan. 23
United States Government
bonds:
539
Jan.2
,
539
Jan. 9
539
Jan. 16
,
Jan. 23
539
United States Victory notes:
Jan.2
Jan.9
Jan. 16.,
Jan. 23
United States certificates 0/
indebtedness:
Jan. 2
33,605
Jan.9
21,775
Jan. 16
26,074
21,891
Jan. 23
Total earning assets:
237,434
Jan.2
Jan.9
220,358
Jan. 16
217,622
206,674
Jan. 23
New
York.
Philadelphia.
AtCleve- Richland. mond. lanta.
San
Minne- Kansas
St.
Louis. apolis. City. Dallas. Francisco.
Chicago.
Total.
24,180
24,215
24,278
24,463
2,725
2,808
2,853
2,862
8,256
8,288
7,539
7,258
254
247
340
278
6,362
6,467
6,448
6,676
13,388
10,864
12,860
12,589
239,609
220,301
212,119
220,347
20,082 72,562
21,055 L15,620
24,041 88,448
20,302 87,767
16,675
15,879
22,359
17,675
5,952
13,507
18,018
18,289
30,994
24,294
26,607
36,365
15,415
11,868
11,588
10,084
27,859
25,146
27,439
31,155
363,723
380,263
456,260
441,499
6,172
5,796
5,655
5,514
3,546
3,330
3,249
3,168
6,303
5,919
5,775
5,631
3,414
3,206
3,128
3,050
6,041
5,673
5,535
5,396
131,320
123,322
120,323
117,322
217,767 61,181 35,607 39,246 27,411 .28,445
219,929 71.525 35,147 39,465 32,973 .16,178
213,020 53,879 34,703 38,100 33,014 .03,382
214,502 54,375 35,029 36,260 32,194 93,791
1,205,596
1,209,508
1,136,326
1,126,261
154,012
140,823
124,643
137,103
1,200
1,279
1,383
1,282
10,368
6,102
12,069
7,990
2,421
2,441
2,472
2,502
41,101
11,154
94,198
61,528
30,577
28,544
31,166
30,117
36,416
45,500
41,205
49,935
30,007
28,470
23,666
23,454
48,195
45,260
44,158
43,057
10,506
9,866
9,626
9,386
10,768
10,112
9,867
9,621
6,435
6,043
5,896
5,749
4,727
4,440
4,332
4,224
306,756
300,520
284,286
283,218
88,918
81,858
78,583
75,063
123,711
128,098
120,723
127,973
39 972
37,'343
44,587
41,730
63,393
66,577
55,288
57,837
25,000
25,000
25,000
25,000
8,479
10,096
12,354
14,770
1,956
1,137
1,192
1,498
7,223
8,791
6,619
8,894
8,051
7,709
6,
5,912
20,371
16,772
22,910
19,531
6,577
6,003
7,536
5,844
575,064
522,757
572,285
549,906
139,680
131,643
133,112
130,618
183,219
190,949
185,056
197,017
86,058
83,088
83,240
82,329
104,682
108,239
98,820
96,555
350,507
391,211
362,974
360,224
93,330
102,011
92,282
86,270
45,819
46,260
45,638
46,111
536
381
422
310
715
809
910
1,048
192
198
204
220
997
979
1,108
1,139
1,757
3,175
620,883
569,017
617,923
596,017
140,216
132,024
133,534
130,928
183,934
191,758
185,966
198,065
86,250
83,286
83,444
82,549
105,679
109,218
99,923
97,694
352,416
393,369
365,252
361,981
95,820
104,682
95,216
89,445
571,822
494,173
419,804
482,773
173,734
174,403
163,582
159,377
114,920
100,854
105,025
93,457
84,607
82,577
73,752
75,762
63,898
67,645
80,733
80,718
160,421
135,896
176,432
184,693
48,271
45,640
62,032
54,429
21,228
20,363
20,519
22,451
39,744
37,354
33,262
33,832
42,940
48,921
55,357
45,940
1,484,262
1,352,085
1,351,454
1,386,348
239,901
267,130
288,505
278,596
34,761
28,911
31,442
39,355
46,319
42,505
39,160
39,737
23,841 24,826 135,695 32,587
23,681 23,142 110,833 28,574
22,156 18,358 117,160 33,683
21,517 18,451 129,639 47,261
50,152
47,256
44,868
42,291
48,432 18,372 31,297
51,810 18,183 30,985
58,488 10,617 36,600
57,987 12,208 36,810
746,925
727,670
748,611
767,110
208,652
194,796
212,295
202,706
5,177
5,842
6,065
7,827
48,219
63,729
63,791
71,312
16,560 16,226
10,973 9,887
11,205 9,662
10,449 9,503
1,257
1,257
1,457
1,457
1,385
1,385
1,385
1,385
833
833
833
833
50
250
50
50
1,235
1,235
1,235
1,235
8,429
8,458
8,331
375
375
375
375
245,642
241,139
233,572
239,035
237,822
234,452
243,340
229,056
i
!
!
I
1,909 i 2,490
2,158
2,671
2,278
2,934
445
400
792
200
4,538
4,255
5,452
7,124
4,477
4,477
4,477
1,153
1,153
1,153
1,153
9,218
9,709
9,466
9,835
138,503
130,726
125,608
121,223
120,994
116,718
124,797
124,716
122,367
107,977
118,850
121,221
53,806 81,335 56,447 184,951 2,062,615
60,672 74,180 57,769 167,570 2,041,371
64,301 76,274 57,324 158,682 2,043,878
63,944 85,658 54,901 152,766 2,026,650
65
74
62
69
361
321
287
361
1,253
1,439
1 471
1,627
354
429
453
425
58,657
60,728
60,403
61,246
53,871 81,696 57,700 185,305 2,121,272
60,746 74,501 59,208 167,999 2,102,099
64,363 76,561 58,795 159,135 2,104,281
64,013 86,019 56,528 153,191 2,087,896
90,690 31,161 12,061 17,567
88,792 21,154 10,229 15,211
84,118 15,668 8,409 14,013
82,939 12,612 7,984 9,524
I 4,477
3,845
3,255
3,146
2,897
116
116
116
116
38,763
39,157
52,021
47,354
6,621
6,286
6,256
6,091
103,063
109,539
109,693
119,418
574,631
574,722
575,675
575,789
3,966
3,966
3,966
2,632
2,632
2,632
2,632
26,836
26,836
27,036
27,036
8,868
4
4
4
4
10
10
10
10
79,952 30,585 27,521 12,260 15,665
30,598 26,521 12,260 15,665
71,211 31,098 34,521 17,260 15,665
68,716 31,091 23,707 12,260 15,665
1,101,634
1,025,095
993,322
1,034,298
15,627
14,675
14,318
13,961
64
264
64
64
83,891 18,236 9,480 16,986
64,797 17,243 8,480 16,832
52,921 17,281 12,555 20,780
40,513 17,750 8,480 15,826
475,174
404,795
435,108
442,261
131,408
113,764
129,817
133,205
93,037
86,444
86,467
81,322
131,597
130,075
135,411
126,037
9,065
9,065
8,300
8,300
11,844
11,681
12,018
12,566
349,090
302,406
319,684
276,765
76,787
76,659
81,160
77,919
191,776
203,758
216,300
217,366
3,181,808
2,983,983
3,022,524
3,033,112
FBBBUART, 1920.
197
FEDERAL RESERVE BULLETIN.
Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Jan. 2 to Jan. 23, 1920—Contd.
[In thousands of dollars.]
RESOURCES.
Boston.
Bank premises:
1,103
Jan.2
1,108
Jan. 9
1,108
Jan. 16
1,098
Jan. 23
Uncollected items and other
deductions from gross deposits:
104,966
Jan.2
75,056
Jan. 9
87,310
Jan.16
83,257
Jan. 23
per cent redemption fund
against Federal Reserve
bank notes:
1,072
Jan.2
1,072
Jan.9
Jan. 16
• 1,072
1,072
Jan.23
All other resources:
Jan.2
1
333
Jan.9
534
Jan. 16
!
488
Jan. 23
i
Total resources:
!
Jan.2
1502,446
Jan.9
454,218
Jan. 16
471,815
Jan. 23
464,055
1 Includes bills discounted for
other Federal Reserve banks:
Jan.2
1
Jan.9
!
Jan. 16
Jan .23
2 Includes bankers'acceptances
bought from other Federal
Reserve banks:
With their indorsement—
Jan.2
Jan.9
Jan.16
Jan. 23
Without their indorsementJan. 2
Jan.9
Jan.16
Jan. 23
New
York.
3,094
3,094
3,094
3,094
257,067
222,803
268,237
230,008
2,910
2,885
2,832
2,751
Philadelphia.
San
St.
Minne- Kansas
Louis. apolis. City. Dallas. Francisco.
Cleve- Richland. mond.
Atlanta.
Chicago.
504
504
553
553
463
478
480
480
2,116
2,116
2,116
2,116
97,166 96,546 101,242 54,485
77,009 76,566 81,169 52,573
95,285 86,507 87,512 50,535
81,724 79,077 85,867 47,599
131,964
122,620
141,810
120,796
83,123
79,111
74,553
70,528
500
500
500
500
640
640
640
640
356
356
356
356 I
500
500
500
515
31,347
I 24,148
23,480
22,026
462
462
462
462
399
421
421
448
91,285
89,971
88,544
81,512
67,012
61,916
60,044
56,999
Total.
232
231
231
231
10,369
10,410
10,461
10,493
55,575 1,171,778
58,754 1,021,696
53,035 1,116,852
63,240 1,022,633
1,475
1,475
1,475
1,475
1,114
1,146
1,166
1,125
643
519
643
335
831
847
803
859
1,832
2,132
1,692
1,568
673
682
725
463
400
324
276
310
957
558
957
550
958 ! 558
941 | 566
665
665
665
665
13,130
13,254
12,865
12,130
1,176 ! 419
1,175 ! 156
1,137
421
1,143
469
a 649
426
470
418
620
&905
482
505
163
154
149
325
590
564
599
567
241
255
282
305
141
148
160
140
477
497
507
477
612
350
388
276
278
334
320
5,733
5,241
5,463
5,483
520,705
504,988
518,089
508,381
327,762
297,109
298,242
291,032
282,615
279,988
276,687
271,673
964,092
925,596
946,577
929,289
311,621
298,850
300,949
294,302
179,296
172,310
175,246
168,326
306,474
396,463
302,443
295,448
1,986,764
1,824,069
1,886,545
1,867,311
485,418
452,303
464,787
454,131
9,500
2,500
5,000 17,540
7,000 6,050 4,500
22,000 47,500 12,970
19,500 47,675 7,470
* Includes Government overdraft of $245,000.
8,940
5,622
1,992
376
6,731
3,230
1,444
1,386
433,829
431,685
429,700
435,013
28,903
24,350
7,814 10,000
12,000
5,065 16,500 17,058
15,165 10,723
15,165 7,134
14,115 4,639
4,902
12,386
11,939
18,574
203,068
199,104
201,366
192,786
1
6,504,093
6,136,680
6,272,446
6,171,747
51,443
41,900
110,784
89,145
5,065
5,065
5,065
5,065
10,081
58,849
30,953
2^,364
23,819
100
3,598
2,441
406
3,580
32,357
29,943
20,817
24,906
6,264
5,036
990
& Includes Government overdraft of $204,000.
198
FBBBUAHY, 1920.
FEDEKAL RESERVE BULLETIN.
Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Jan. 2 to Jan. 23, 1920—Contd.
[In thousands of dollars.]
LIABILITIES.
Boston
Capital paid in:
Jan. 2
Jan.9
Jan. 16
Jan.23.
Surplus fund:
Jan.2
Jan.9
Jan. 16
Jan. 23
Government deposits:
Jan.2
Jan. 9
Jan.16
Jan. 23
Due to members—reserve account:
Jan.2
Jan.9
Jan.16
Jan.23
Deferred availability items:
Jan.2
Jan. 9
Jan.16
Jan. 23
Other deposits, including foreign government credits:
Jan. 2
Jan. 9
Jan.16
Jan. 23
Total gross deposits:
Jan. 2
Jan.9
Jan.16
Jan. 23
Federal Reserve notes in actual
circulation:
Jan.2
Jan.9
Jan.16
Jan. 23
Federal Reserve bank notes in
actual circulation—net liability:
Jan. 2
Jan.9
Jan.16
Jan. 23
All other liabilities:
Jan.2
Jan.9
Jan.16
Jan. 23
Total liabilities:
Jan. 2
Jan.9
Jan.16
Jan. 23
NewYork.
Philadelphia.
Cleveland.
Richmond.
Atlanta.
Chicago.
Minne- Kansas
St.
Dallas.
Louis. apolis. City.
San
Francisco.
Total.
7,108
7,105
7,105
7,105
22.391
22.392
22.393
22,397
7,884
7,884
7,887
7,899
9,533
9,533
9,533
9,533
4,393
4,397
4,397
4,397
3,429
3', 429
3, 435
3,456
12,363
12,374
12.375
12,376
4,064
4,065
4,081
4,081
3,076
3,076
3,090
3,107
4,022
4,022
4,021
4,021
3,417
3,414
3,415
3,417
5,753
5,760
5,797
5,800
87,433
87,451
87,529
87,589
8,359
8,359
8,359
8,359
45,082
45,082
45,082
45,082
8,805
8,805
8,805
8,805
9,089
9,089
9,089
9,089
5,820
5,820
5, S20
5,820
4,695
4,695
4, 695
4,695
14,292
14.292
14,292
14,292
3,724
3,724
3,724
3,724
3,569
3; 569
3,569
3,569
6,116
6,116
6,116
6,116
3,030
3,030
3,030
7,539
7,539
7,539
7,539
120,120
120,120
120,120
120,120
12,844
1,028
898
8,542
194
6,282
'309
47,571
6,119
672
2,878
4,501
479
211
6,595
1,297
1,675
4,073
3,093
4,357
3,993
3,000
1,495
1,683
4,975
3,387
2,865
5,128
2,106
1,893
1,365
333
1,543
818
1,193
2,559
1,325
2,480
4,303
9,076
2,105
3,530
5,023
5,969
5,517
38,920
27,798
34,698
90,448
785,043 97,822 124,416
702,354 102,864 134,154
767,364 103,674 141,491
718,116 101,925 133,564
67,142
64,149
62,204
60,124
60,404
56,408
60,038
55,748
272,994
273,564
276,090
271,139
75,019
74,947
70,869
72, 692
55,111
53,402
55,167
51,833
80,239
89,238
91,902
94,959
62,652
63,062
65,797
63,588
120,794
119,808
123,961
121,307
1,922,800
1,850,219
1,943,561
1,859,149
84,541 88,289 I 36,902 109,002
59, 668 66,526 43,104 84,159
72,886 72,758 40,731 109,912
64,649 70,256 I 42,183 91,329
61,691
54,164
59,720
57,341
16,874
14,284
18,049
14,648
87,382
69,639
71,842
64,215
43,352
38,238
33,427
35,261
34,139
34,850
33,531
47,185
944,884
763,146
849,854
795,782
4,147
3,914
4,183
3,819
2,951
2,270
2,681
2,362
4,021
3,735
4,142
3,710
2,508
2,062
2,317
2.167
6,520
5,764
5,462
4,988
116,307
96,425
107,800
95,097
121,164
116,269
125,004
114,154
81,843
206,265
60,349
167,248
74,167 i 181,977
66,848 | 168,007
5,960
5,560
6,041
6,110
56,232
43,336
50,112
42,844
94,604
70,917
80,854
73,860
8,361
6,786
8237
8,237
6,987
582
7,200
6,437
6,937
6068
6,068
221,811 1,047,734 206,906 |216,157
— —
183,206
239 200,738
919,220 181.
,
206,110
999,762 195', 643
195,654
976,538 187,273 221,525
210.876
3,816 i 3,155 11,436
3,645 j 2,729 10,187
3,717
2,735 11,236
9,570
3,635
2,837
159,829
134,320
139,976
135,690
104,534
105,334
107,861
104,761
396,432
369,405
398,921
377,013
144,244
1135,890
139,900
135,958
76,829
71,321
76,230
70,386
172,460
163,805
170,445
164,209
110,992
107,665
110,617
103,121
164,983
165,445
168,923
178,997
3,022,911
2,737,588
2,935,913
2,840,476
243,368
233,500
228,164
230.999
811,119
776,592
757,906
761,643
232,160
224,322
222,140
220,261
262,997
262,345
254,607
255,587
145,277
140,005
135,493
132, 607
154,112
150,613
144,704
142,770
498,178
486,386
477, 493
481,593
143,411
138,726
136,621
133,849
87,106
85,566
83,474
82,468
103,680
102,214
101,485
100,728
74,814
74,256
73,648
72,591
242,770
239,843
234,144
229,131
2,998,992
2,914,368
2,849,879
2.844,227
20,820
20,921
20,859
20,486
52,776
52,353
52,068
50,959
28,791
29,091
28,884
28,107
22,106
22,261
22,140
21,915
12,073
12,096
12,040
11,912
15,503
15,496
15,502
15,432
41,012
41,223
41,272
40,750
15,611
15,851
15,925
15,786
8,207
8,231
8,303
8,164
19,489
19,482
19,483
19,427
10,383
10,253
10,141
10,031
11.790
11,841
11,865
11,874
25S, 561
259,099
25S,482
254,843
1,127
1,218
1,452
7,662
8.430
9',334
10,692
872
962
1,428
1,786
823
1,022
1,195
1,381
370
471
516
606
342
421
490
559
1,815
1,916
2,224
3; 265
567
594
698
904
509
547
580
632
707
824
893
947
432
486
515
991
1,257
1,432
1,672
16,073
18,057
20,523
24,492
1.986,764 485,418 520,705
454,218 1,824,069 452,303 504,988
471,815 1,886,545 464,787 518,089
464,055 1,867,311 454,131 508,381
327,762
297,109
298,242
291,032
282,615
279,988
276,687
271,673
964,092
925,596
946,577
929,289
311,621
298,850
300,949
294,302
179,296
172,310
175,246
168,326
306,474
296,463
302,443
295,448
203,068
199,104
201,366
192,786
433,829
431,685
429,700
435,013
6; 504,090
6,136,683
6,272,446
6,171,747
MEMORANDA.
Contingent liability as indorser
on:
Discounted paper rediscounted with other Federal Reserve B a n k s Jan. 2
Jan.9
Jan.16
Jan. 23
Bankers' acceptances sold
to other Federal Reserve
banksJan. 2
Jan.9
Jan.16
Jan. 23
25,664
20,050
25,434
31,695
58,849
30,953
27,364
23,819
9,570
10,000
9,850
10,000
16,209
11,850
5,000
3,750
51,443
41,900
119,784
89,145
58,849
30,953
27,364
23,819
FEBRUAEY, 1920.
199
FEDERAL RESERVE BULLETIN.
Maturities of bills discounted and bought, also of Treasury certificates of indebtedness.
jln thousands of dollars.]
Within 15
days.
Bills discounted:
Jan.2
Jan.9
Tan. 16
Jan. 23
Rills bought:
Jan. 2
J an.9
Jan. 16
Jan. 23
United States certificates of indebtedness:
Jan. 2
Jan.9
Jan.16
Jan.23
1
16 to 30
days.
1,477,607
1,433,979
1,386, 691
1,328,917
116,925
103,555
115,446
122,411
238,153
150,015
i
j
1
!
85,606 !j
39,889
52,457 !
11,293
31 t o 60
days.
61 to 90
days.
172,077
217,142 !
341 395
312! 265
323, 307 j
298, 901 !
153,
160,
196,
288,
104,217
103, 643
101,103
116.004
206, 406 I
237, 367
237, 365
229. 157 j
147,
130,
121,
108,
3,000
3,151
2,574
5,136
607 I
797 i
850
868
K
7.
6,
6.
Over 90
days.
20,929
22,554
21,879
20,455
Total.
2,231,187
2,079,755
2 100,065
2,153,458
574,631
574,722
575,675
575,789
245,888
243,243
246,203
243,368
349,090
302,406
319,684
276,765
200
FEBRUARY, 1920.
FEDERAL KESEKVE BULLETIN.
FEDERAL RESERVE NOTES.
Federal Reserve note account of each Federal Reserve Bank at close of business on Fridays, Jan. 2 to Jan. 23, 1920.
[In thousands of dollars.]
Federal Reserve notes:
Received from agents—
Jan.2
Jan. 9
Jan. 16
Jan. 23
Held for banksJan. 2
Jan. 9
Jan. 16
Jan. 23
In actual circulationJan. 2
Jan. 9
Jan. 16
Jan. 23
Gold deposited with or to credit
of Federal Reserve agent:
Jan.2
Jan. 9
Jan. 16
Jan.23
Paper delivered to Federal Reserve agent:
Jan.2
Jan. 9
Jan. 16
Jan. 23
Phila- Cleve- Richdelphia. land. mond.
San
St.
Minne- Kansas
FranLouis. apolis. City. Dallas. cisco.
Atlanta.
Chicago.
150.878
145;849
140^933
136,771
159,467
155,687
149.098
147,851
537,501
523,362
511,645
515,247
163.275
160;620
155,573
155,668
88,503
87.643
85', 449
84,585
110,393
110,112
109,307
107,487
78,641
78,320
78,361
76,821
279,419
283,112
279,216
276,625
3,291.342
3,244,314
3,177,290
3,146,156
20,821
12,260
15,583
13,133
5.601
5.844
5', 440
4,164
5.355
5.074
4,394
5,081
39,322
36,976
34,152
33,654
19,864
21,894
18,952
21,819
1,397
2,077
1,975
2,117
6,713
7,898
7,822
6,759
3,827
4,064
.4, 713
4,230
36,649
43,269
45,072
47,494
292,350
329,946
327,411
301,929
232,160
224,322
222,140
220,261
262,997
262,345
254,607
255,587
145,277
140,005
135;493
132,607
154,112
150.613
144.704
142,770
498,178
486.386
477,493
481.593
143,411
138;726
136,621
133.849
87,106
85,566
83,474
82,468
103,680
102,214
101,485
100,728
74,814
74,256
73,648
72,591
88,918
81,858
78,583
75,063
123,711
128,098
120,723
127,973
39,972
37.343
44,587
41,730
63.393
66,577
55.288
57,837
217,767
219.929
213,020
214,502
61,181
71,525
53,879
54,375
35,607
35,147
34,703
35,029
39,246
39,465
38,100
36,260
:.281
203,290 1,018,253 173,919
198,044 953,766 186,782 189', 088
918,288 170.301 206.026
184,244 961,953 182,876 196,420
115.214
115,214
104,031
104,183
104,853
100,585
108.599
107,050
Boston.
New
York.
254,396
251,602
244,468
241,996
939,186
935,596
921,679
905,595
245,865
237,806
231,371
228,790
283,818
274,605
270,190
268,720
11,028
18,102
16,304
10,997
128.067
159;004
163,773
143,952
13,705
13,484
9,231
8,529
243,368
233,500
228,164
230,999
811,119
776,592
757,906
761,643
73,189
79,895
76,761
74,289
306,756
300,520
284,286
283,218
, 191,009
386.509 111,910 73.592
335,223 95,368 66,158
377,457 111.383 62,782
396,864 114,302 58,663
242,770 2,998,992
239,843 2,914,368
234,144 2,849,879
229,131 2,844,227
27,411 128,445
32,973 116,178
33,014 103,382
32,194 93,791
105,657 63,756
104,123 63,628
105,712 68,894
101,302 65,653
Total.
1,205,596
1,209,508
1,136,326
1,126,261
165,428 2,730,662
182,570 2,590,549
190,177 2,614,659
194,300 2,667,810
201
FEDERAL RESERVE BULLETIN.
FBBBUABY, 1920.
Federal Reserve note account of each Federal Reserve agent at close of business on Fridays, Jan. 2 to Jan. 28, 1920.
[In thousands of dollars.]
Boston.
New
York.
Phila- Clevedelphia. land.
Federal Reserve notes:
Received from ComptrollerJan. 2
476,300 2,001,000 510,780
479.900 2,007,600 510, 780
Jan. 9 .
479 900 2,007,600 510,780
Jan. 16
479,900 2,008,720 510,780
Jan. 23
Returned to ComptrollerJan. 2 .
945.814 241,575
193,224
Jan. 9.. ..
.. . . 196 518 962^004 244,634
975,921 248,409
199,652
Jan.16
992,405 252,930
202 124
Jan.23. .
Chargeable to Federal Reserve agentJan. 2 .
283,076 1,055,186 269,205
Jan. 9..
. . 283 382 1,045,596 266,146
280,248 1,031,679 262,371
Jan.16
277 776 1 016,315 257,850
Jan. 23.. .
In hands of Federal Reserve agentJan. 2
116,000 23,340
28,680
110,000 28 340
31 780
Jan. 9
35 780
110.000 31,000
Jan.16
110,720 29 060
35 780
Jan. 23
Issued to Federal Reserve
Bank less amount returned to Federal Reserve
agent for redemption:
Jan. 2 .
254 396
939,186 245,865
251,602
935.596 237,806
Jan. 9
244 468
921,679 231,371
Jan. 16
905,595 228,790
241,996
Jan. 23
Collateral held as security for
outstanding notes:
Gold coin and certificates—
Jan. 2..
183,740
183,740
Jan. 9
183,740
Jan. 16.
Jan. 23
183,740
Gold redemption fund—
13 189
Jan 2
13 016 14,529
12,895
11,780 16,469
Jan.9.
15,761
10,546 12,694
Jan.16..
9,478 13,174
13,289
Jan. 23
Gold settlement fund, Federal Reserve Board—
Jan. 2
60,000
110,000 74.389
67,000
105,000 65,389
Jan.9.
61,000
90 000 65 889
Jan 16
61,000
90,000 61,889
Jan. 23
. .
Eligible paper, minimum
required— i
Jan. 2
632,430 156,947
181,207
171,707
635,076 155,948
Jan.9
637,393 152,788
167, 707
Jan 16
622,377 153,727
167,707
Jan. 23
1
Rich- Atmond. lanta.
Chicago.
San
St. Minne- Kansas
FranLouis. apolis. City. Dallas. cisco.
Total.
485,040
485,240
485,840
486,240
305,860
305,860
305,860
305,860
298,000
298,000
298 000
299,800
838,800
845,600
848 960
854,120
299,600
299,600
299,600
299,600
152,080
154,080
154,080
154,080
203,260
205,260
207,280
207,300
143,700
144,500
146,000
145,980
409 920
415,880
419,880
419,880
6,124,340
6,152,300
6,163,780
6,172,260
175,122
178,735
182,110
185,860
129,794 93,088
132,424 94.903
135.179 98,192
138,036 100,644
290,459
298 298
305,205
313 723
113,825
115,480
120,127
121,632
56,317
56,777
57,971
59,395
87.077
88!358
89,723
91,563
48,899
49,400
50,359
51,179
129,351
131,618
133,414
136,005
2,504,545
2,549,149
2,596,262
2,645,496
309,918
306,505
303,730
300 380
176,066
173,436
170,681
167 824
204,912
203 097
199,808
199 156
548.341
547 302
543,755
540 397
185,775
184,120
179.473
177,968
95,763
97,303
96,109
94.685
116,183
116.902
117,557
115,737
94,801
95,100
95,641
94,801
280,569
284,262
286,466
283 875
3,619,795
3,603,151
3,567,518
3,526,764
26,100
31 900
33,540
31 660
25,188
27 587
29,748
31,053
45.445
47 410
50,710
51 305
10,840
23 940
32,110
25 150
7,260
22,500
23,500
9,660
23,900 10,660
22.300' 10,100
5,790
6,790
8,250
8,250
16,160
16,780
17.280
17,980
1,150
1,150
7,250
7 250
328,453
358,837
390,228
380,608
283,818
274,605
270,190
268,720
150,878
145,849
140,933
136,771
159,467
155,687
149,098
147,851
537,501
523,362
511.645
515,247
110,393
110,112
109.307
107,487
78,641
78,320
78,361
76,821
279,419
283.112
279,216
276,625
3,291,342
3,244,314
3,177,290
3,146,156
32,025
36,025
30,025
34,025
2,500
2,500
2,500
2,500
163,275
160,620
155,573
155.668
88,503
87,643
85,449
84,585
4.000
4,000
4,000
4,000
13,052
13,052
13,052
13,052
244,148
248,148
242,148
246,148
8,831
8,831
8.831
8,831
18,226
17,713
15,917
14,265
101,120
105.786
96,105
91,979
37,360
36,860
34,860
32,860
14,484 110,219
18,484 98,465
19.484 87,465
19.484 79,526
860.328
855,574
798,073
788,134
71,147
70,647
71,207
71,227
51,230
45,347
45,347
44,627
150,974
166.934
175,834
182.834
2,085.746
2,034,806
2,040,964
2,019,895
16,686
17,073
15.698
13,948
1,972
1,343
587
2,730
2,893
3,077
3,788
3,337
8.622
8,783
7,876
8.358
3,250
5.595
2,948
3.444
2, 755
2,795
2,351
2,677
1.886
2,605
3.240
3.400
75,000
75,000
75,000
80,000
38,000
36,000
44,000
39,000
58,000
61,000
49,000
52,000
209,145
211.146
205,144
206,144
53 931
61,930
46,931
46,931
19,800
19,300
19,300
19,300
160,107 110,906
146,507 108,506
149,467 96,346
140,747 95,041
96,074
89,110
93,810
90,014
319,734 102,094
303,433 89,095
298,625 101.694
300,745 101.293
52,896
52,496
50,746
49,556
For actual amounts, see " Paper delivered to Federal Reserve agent," on p. 200.
4.096
5.658
4.699
3,879
202
FEDERAL RESERVE BULLETIN.
FEBRUARY, 1920.
Amounts of Federal Reserve notes received from and returned to other Federal Reserve Banks for redemption or credit during
the period from Jan. 1, 1919, to Dec. SI, 1919.
Philadelphia.
Cleveland.
Richmond.
Received. Returned,
Received. Returned
$4,528,700
35,792,100
11,133,500
$1,655,100
21,783,650
9,567,500
7,180,750
1,874,200
3,906,900
1,123,805
395,000
571,100
392,800
811,880
7,897,500 9,771,000
3,510,500 4,605,380
5,633,000 19,028,500
1,477,000
6,225,265
1,068,500
1,099,000
1,452,500
1,716,200
512,500
894,700
993,050
1,881,210
5,728,850
3,060,400
16,439,300
1,703,850
1,515,550
1,762,250
480,600
866,850
$4,367,850
31,924,350
9,899,870
6,876,600
$2,250,250
22,233,250
13,156.250
9,627,500
6,217,370
5,425,000
2,662,005
524,000
1,001,200
575,250
1,332,320
8,539,250
8,955,500
2,597,000
2,027,750
2,146,000
757,500
620,750
62,719,465 90,292,900 235,407,790 210,385,200 78,299,885
21,660,305 37,931,700 118,050,470 118,629,200 39,531,305
4,278,835 12,012,900 29,997,052 24,799,975 8,066,790
94,525,050 96,675,555
62,354,660 40,366,135
14,960,902 5,175,740
64,563,900 70,805,815
21,249,450 31,113,635
2,534,070 6,450,175
72,911,000
26,603,050
2,083,430
New York.
Boston.
Received. Returned. Received. Returned. Received. Returned
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total: 1919.
1918.
1917.
$45,236,150 $59,738,000
4,247,000 6,872.600
4,427,450
2,325,250
4.392,150
2,237,750
1,607,830 2,470,650
3,681,000 6,369,450
1,073,035 1,219,550
1,378,050
420,000
1,621,300
522,400
509,100
306,605
1,294,600
1,062,445
59,310,500
22,815,150
22,394,000
12,802,160
28,768,500
9,962,820
3,414,000
4,883,200
3,178,600
8,018,610
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas C i t y . . .
Dallas
San Francisco.
Total: 1919.
1918.
1917.
Returned.
Boston
Total: 1919.
1918.
1917.
St. Louis.
Returned.
Received.
$1,584,360
14,014,420
2,770,980
4,948,010
6,271,540
$6,311,850
40,400,150
6,951,510
19,259,550
8,873,310
6,792,795
$3,908,000
28,930,000
6,150,000
19,071,000
5,490,500
6,340,000
6,145,500
9,271,360
571,500
1,677,400
2,820,850
1,357,935
6,975,840
9,506,250
1,063,500
2,381,450
4,139,000
965,310
25,007,785
15,834,500
10,335,250
2,310,850
7,900,180
13,137,000
18,418,000
14,621,500
3,270,000
10,269,500
58,397,145
21,107,515
6,210,710
54,620,660
20,438,925
4,650,150
149,977,730 I
49,708,155 |
5,129,265 J
129,605,500
51,456,600
15,268,500
Received.
Returned.
$494,200
3,581,350
548,000
606,700
734,750
3,857,150
3,229,500
5,458,235
339,000
3,945,150
Received.
Minneapolis.
Returned.
$1,207,350
7,747,100
1,526,500
1,993,200
2,582,000
8,802,075
13,102,000
$1,098,565
10,234,335
2,037,755
6,237,965
2,705,855
9,518,855
25,107,085
953,500
8,200,400
2,805,705
1,550,095
1,871,705
9,093,880
5,495,840
2,157,445
50,469,925
15,019,535 !
3,344,960 !
75,559,285
37,557,760
7,979,770
Received.
Returned.
$246,550
2,366,850
378,400
647,150
469,700
2,396,350
1,710,500
2,455,150
294,150
2,549,650
$1,618,950
7,450,700
1,504,000
2,080,850
2,148,500
2,040,725
14,637,000
9,053,925
2,518,000
$522,400
4,908,700
858,200
1,721,200
1,019,500
1,617,500
10,335,250
8,200,400
2,402,050
3,208,750
5,345,740
4,015,150
4,201,550
1,971,060
934,850
51,607,140
33,604,360
7,783,185
39,801,900
6,320,605
1,118,755
24,765,095
11,083,945
5,7«5,280
14,449,300
11,855,210
3,506,950
Received.
Returned.
Returned.
$1,405,650
5,693,250
1,124,500
1,804,550
2,069,250
1,017,730
18,446,500
1,873,305
$451,000
3,376,000
556.500
1,104,500
524,000
550,000
15,714,000
950,000
2,402,050
392,700
3,377,150
2,510,000
378,500
3,589,000
39,606,635
14,296,105
5,537,985
29,703,500
9,115,300
1,351,000
Total.
San Francisco.
Dallas.
Received.
$3,382,000
59,800,500
i6,*45i,*666" *8,*798,*666*
$2,439,250
18,361,150
3,617,500
3,434,950
8,699,750
Kansas City.
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
54,441,950
24,882,550
24,859,000
14,603,700
29,202,250
5,983,050
4,091,350
5,489,350
2,522,950
11,028,250
Chicago.
Atlanta.
Received.
$4,370,700
47,221,750
$59,860,250 $33,280,800
Received.
Returned.
$1,277,800
14,769,350
1,044,500
1,044,950
635,250
940,855
10,172,000
2,128,495
3,921,000
4,175,550
2,280,850
$1,075,745
8,018,955
1,280,495
1,866,410
1,356,250
1,346,100
7,783,965
1,529,745
3,592,310
5,389,250
2,027,590
$87,882,550
258,177,400
100,907,380
72,692,750
67,326,310
50,558,270
126,542,400
73,840,035
29,989,500
39,429,900
19,167,660
34,608,625
$49,454,770
235,404,660
98,070,630
83,331,735
60,714,845
53,953,305
134,226,140
48,758,995
37,722,915
49,017,130
24,108,730
36,921,155
42,390,600
15,582,545
4,355,640
35,266,815
5,094,685
1,843,080
961,122,780
411,124,010
92,095,617
911,685,010
408,607,145
92,109,482
FEBRUARY, 1920.
FEDERAL RESERVE BULLETIN.
203
CONDITION OF MEMBER BANKS IN SELECTED CITIES.
For the period between December 19, 1919,
and January 16 of the present year, reports
from about 800 member banks in leading cities
indicate a reduction of 47.4 millions in United
States securities held. A total decline of 3.1
millions is shown in the aggregate holdings of
United States bonds, Victory notes fell off
15.8 millions, this amount apparently representing additional absorption by subscribing
customers, while Treasury certificate holdings,
after reaching the maximum of 894.6 millions
on January 9, declined to 815.9 millions, or
28.4 millions below the total reported four
weeks before. Reductions in certificate holdings represent amounts of certificates redeemed
by the Treasury on or before maturity and to a
much smaller extent amounts placed with the
public. Loans secured by Government war
obligations, less rediscounts (so-called war
paper), show a decrease from 1,022.6 to 1,002.2
millions. Of the total war paper (less rediscounts) held on the more recent date, 692.9
millions, or 69 per cent, was secured by Liberty
bonds, 292.4 millions, or 29 per cent, by Victory
notes, and 16.9 millions, or less than 2 per cent,
by Treasury certificates.
War paper rediscounted with the Federal
Reserve Banks decreased from 306.3 to 299.8
millions, while the total of other paper rediscounted with the Federal Reserve Banks increased from 486 to 656.3 millions. In addition the reporting banks decreased the total of
their collateral notes discounted with the Federal Reserve Banks from 846.1 to 801.3 millions.
Of the latter total all but 5.6 millions was represented by war paper. Of the gross amount of
war paper, 1,328.9 millions, shown by reporting member banks for December 19, no less
than 1,147.7 millions, or about 86 per cent,
was either discounted or rediscounted with
the Federal Reserve Bank. Four weeks later
the gross amount of war paper shown by all
reporting banks had declined to 1,302 millions,
while the amount of war paper discounted or
rediscounted with the Federal Reserve Banks
had been reduced to 1,095.5 millions, or to 84
per cent of the gross total shown. Loans secured
by stocks and bonds, which totaled 3.270.5
millions on December 19, reached the high
point of 3,390.6 millions on the first Friday of
the year. Since then there has been some
liquidation of these loans, reducing the total to
3,355.7 millions, or to 21.1 per cent of the total
loans and investments of all reporting banks,
as compared with 20.9 per cent four weeks
before. All other loans and investments of
reporting banks (exclusive of rediscounts with
Federal Reserve Banks) show a steady increase
from 9,340 to 9,604 millions, about 58 per
cent of the total increase being shown by members outside Federal Reserve Bank cities.
Fluctuations in volume of Government deposits were caused largely by the Treasury's
transactions in redeeming and placing certificates, the movement of Treasury certificates
held by reporting banks being parallel to the
movement of their Government deposits.
Other demand deposits (net), in keeping with
the considerable increase in the loans and investments of the reporting banks, show an increase during the four weeks of 545.3 millions,
while the gain of 172.9 millions in time deposits
is due largely to the inclusion for the first time
on January 9 of reports from two and on January 16 of reports from three Los Angeles
trust companies and savings banks.
Reserve balances with the Federal Reserve
Banks show a commensurate increase, the total
on January 16 being 157.1 millions larger than
four weeks before. A decrease of 26.3 millions
in cash on hand apparently represents to a large
extent Federal Reserve notes returned to the
Federal Reserve Banks.
204
FEDERAL RESERVE BULLETIN.
FEBRUAEY,
1920.
Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve Bank
cities and in Federal Reserve branch cities as at close of business on Fridays from Dec. 26, 1919, to Jan. 16, 1920.
1. ALL REPORTING MEMBER BANKS,
tin thousands of dollars.]
ton.
Number of reporting
banks:
Dec. 26
Jan.2
Jan.9
Jan. 16
United States bonds to
secure circulation:
Dec.26
Jan.2
Jan.9
Jan.16
Other United States
bonds, including Liberty bonds:
Dec. 26
Jan.2
Jan. 9
Jan. 16
United States Victory
notes:
Dec. 26
Jan.2
Jan.9
Jan. 16
United States certificates
of indebtedness:
Dec. 26
Jan.2
Jan. 9
Jan. 16
Total United States securities owned:
Dec. 26
Jan.2
Jan.9
Jan. 16
Philadelphia.
Cleveland.
RichAtSt. Minne- Kansas
mond. lanta. Chicago. Louis. apolis. City. Dallas.
112
112
112
112
San
Francisco.
107
107
107
107
Total.
797
798
802
803
13,436
13,336
13,111
13,Oil
48,887
48,887
48,886
48,887
11,097
11,097
11,097
11,097
41,841
41,841
41,841
41,841
26,271
26,296
26,296
26,296
14,015
14,015
14,015
14,015
20,873
20,874
20,861
20,893
17,178
17,178
17,178
17,178
14,514
14,461
14,150
14,148
271,521
272,526
269,161
263,507
29,426
29,518
28,947
29,425
62,826
63,583
62,170
61,123
36,283
37,249
37,121
36,005
27,864
28,961
29,425
29,226
61,020
59,476
61,214
60,310
14,782
15,631
19,662
14,361
7,758
7,727
7,725
7,883
92,937
97,801
97,577
87,143
12,283
11,994
11,883
12,460
27,353
25,079
24,831
24,675
12,248
12,123
11,511
11,356
8,288
8,136
7,682
7,650
44,822
44,109
43,826
43,251
5,501
5,099
4,752
4,604
48,191
45,149
48,261
43,118
294,646 55,836
351,789 60,581
370,185 68,393
327,235 58,716
63,996
57,382
60,680
59,165
28,474
27,202
27,566
29,094
39,744
42,062
41,360
109,939
129,959
122,619
120,521
22,247
24,225
25,776
24,459
83,899
80,673
83,247
78,160
707,991
771,003
785,809
726,772
108,642
113,190
120,320
111,698
196,016
187,865
189,522
186,804
103,276
102,870
102,494
102,751
89,911
93,174
92,482
517,533
510,678
510,240
522,104
102,411
97,256
96,623
89,065
88,866
90,441
88,047
86,542
37,718
37,947
37,031
37,402
1,483,103
1,541,833
1,515,711
1,502,165
207,032
209,802
210,889
204,224
349,745
351,567
348,890
349,029
3,352,240
3,374,075
3,357,857
3,392,073
497,703
484,392
499,486
501,877
6,060,867
6,197,589
6,169,617
6,143,114
Loans secured by United
States bonds, Victory
notes, and certificates:
41,344
Dec. 26
43,793
Jan.2
Jan.9
, 44,116
41,527
Jan. 16
Loans secured by stocks
and bonds other than
United States securities:
204,836
Dec. 26
208,330
Jan.2
204,534
Jan.9
206,769
Jan.16
All other loans and investments:
665,647
Dec. 26
673,502
Jan.2
675,049
Jan.9
686,182
Jan.16
Total loans and investments:
995,726
Dec. 26
1,006,298
Jan.2
1,006,946
Jan.9
1,012,638
Jan. 16
Reserve balances with
Federal Reserve Bank:
74,135
Dec. 26
85,134
Jan.2
86,870
Jan.9
88,6r
Jan. 16
Cash in vault:
30,512
Dec. 26
29,838
Jan.2
24,243
Jan.9
23,487
Jan. 16
Net demand deposits on
which reserve is computed:
Dec. 26
767,204
Jan.2
, 824,778
Jan.9
800,456
Jan. 16
, 822,885
New
York.
7,020
7,020
7,120
7,120
14,317
14,067
14,067
14,239
19,573
19,573
19,573
19,573
34,605
34,605
34,605
34,605
269,113
268,789
268,650
268,755
10,540 24,925
10,546 27,185
10,495 24,928
10,688 25,321
20,095
17,526
18,514
18,416
58,980
61,074
60,920
61,116
632,776
637,716
636,707
623,646
6,472
6,215
6,125
4,199
4,110
3,781
3,876
13,022
12,728
13,846
14,346
237,997
238,123
236,347
226,064
17,003 24,281
15,588 21,866
18,952 20,652
15,205 17,581
34,733
29,440
30,775
30,306
50,792
52,112
59,430
54,853
857,355
894,649
815,851
236,654 59,708
254,418 62,133
248,520 67,368
244,975 60,602
37,310 70,362 78,600
35,899 69,590 70,649
39,285 65,862 72,643
35,708 63,266 72,171
157,399
160,519
168,801
164.920
1,929,768
2,001,983
2,036,353
1,934,316
24,353
25,642
24,705
24,440
102,644
103,147
98,537
96,868
32,193
32,184
30,571
30,810
14,981
15,143
15,213
14,970
20,944 7,506
20,800 13,880
21,015 7,352
19,482 7,237
29,891
29,257
30,814
31,774
1,020,384
1,020,168
1,004,264
1,002,221
112,551
113,085
112,784
111,854
50,605
52,980
52,182
54,420;
469,458
484,269
482,510
486,466
157,824
160,974
157,659
159,540
31,655
31,859
31,652
32,064
74,305
75,216
75,667
75,012
31,686
31,689
31,605
33,292
127,573
129,042
139,966
140,881
3i
3,390,646
794,953
792,093
806,113
814,053
338,804
341,789
345,478
345,786
350,268
354,955
358,309
355,953
1,372,447
1,360,972
1,401,994
1,411,834
313,747
320,957
324,812
325,049
252,208
256,064
253,910
252,565
472,692
476,157
469,712
474,723
214,992
213,116
218,884
219,126
744,725
735,367
819,754
824,828
9,370,426
9,383,439
9,531,358
9,604,049
915, 7881L, 429,580
904, 6401L, 421,966
927, 3181L, 432,572
906, 864 V[,436,428
592,349
595,691
597,787
597,793
515,137
526,751
527,678
521,302
2,181,203
2,202,806
2,231,561
2,240,143
563,472
576,248
580,410
576,001
336,154
332,784 1,059,58815,
1,_._,
620,951
338,965 641,763 329,334 1,054,18515,796,
1,796,236
340,060 632,256 330,484 1,159,33515.1,936,024
335,307 632,483
1,162,40315;>, 896,302
187,428
202.022
201,571
207,268
44,069
49,555
49,897
45,632
24,514
26,340
24,430
24,475
45,712
43,128
48,253
53,017
24,107
25,905
27,860
29,780
73,237
75,648
79,550
81,396
1,347,175
1,444,285
1,406,535
1,473,974
77,911 13,250
76,084 13,715
72,757 11,365
68,522 10,920
9,504
10,692
10,130
9,012
16,432 12,681
16,809 13,131
16,235 11,555
15,397 10,599
29,119
29,421
31,946
29,783
429,712
431,436
410 707
377,307
803,946 362,907 305,490 1,366,985 352,884
815,622 371,236 327,953 1,432,306 375,358
837,286 369,475 323,905 1,441,313 380,368
857,178
324,313 1,468,799 380,264'
238,711
246,341
246,880
246,542
35, r~
650,456
710,526
648,912
704,190
60,199
59,492
68,864
65,301
85,064
87,541
92,706
97,908
37,794
41,005
40,453
38,001
40,460
37,989
37,169
38,394
146,238
139,527
140,736
126,488
21,549
21,027
19,533
16,650
36,218
40,920
35,656
34,554
20,958
22,868
20,965
17,997
15,340
17,404
15,586
13,898
5,032,001
5,220,661
5,125,440
5,234,706
655,361
668,657
677,203
668,121
2,747
2,745
2,718
2
454,082
462,219
469,535
475,614
240,622
259,151
250,498
255,665
3,300,373
3,364,049
3,355,716
594,05611,174,249
604,96511,609,247
626,81711,549,176
637,04111,740,416
205
FEDERAL RESERVE BULLETIN.
FEBBUARY, 1920.
Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve Bank
cities and in Federal Reserve branch cities as at close of business on Fridays from Dec. 26, 1919, to Jan. 16, 1920—Con.
1. ALL REPORTING MEMBER BANKS-Continued.
[In thousands of dollars.]
Boston.
Time deposits:
Dec. 26
Jan. 2
Jan. 9
Jan. 16
Government deposits:
Dec. 26
Jan. 2
Jan. 9...
Jan.16
Bills payable with Federal Reserve Bank:
Secured by United
States war obligations—
Dec. 26
Jan.2
Jan. 9
Jan. 16
All otherDec. 26
Jan.2
Jan. 9
Jan.16
Bills rediscounted with
Federal Reserve Bank:
Secured by United
States war obligationsDec. 26
Jan.2
Jan. 9
Jan. 16
All otherDec. 26
,
Jan.2
Jan. 9
Jan. 16
,
New
York.
Philadelphia.
Cleveland.
RichAtmond. lanta.
Minne- Kansas Dallas.
St.
Chicago. Louis.
apolis. City.
San
Francisco.
Total.
129,141
129,158
130,701
131,337
392,356
397,155
393,580
408,923
22,242
22,651
22,844
23,156
332,699
335,487
335,130
334,009
96,086
98,480
98,348
99,685
121,150
123,939
123,167
124,728
560,265
567,402
567,733
572,795
112,015
113,559
114,094
116,166
59,924
59,975
60,371
59,978
85,782
87,678
86,448
87,013
35,869
38,537
39,129
40,325
354,815
359,786
438,194
468,164
2,302,344
2,333,807
2,409,739
2,466,279
36,263
40,649
47,433
37,898
248,489
330,789
330,559
214,881
36,080
43,376
49,422
35,180
46,565
44,340
41,519
37,826
12,366
7,815
7,538
21,359
19,471
15,645
10,733
74,623
63,769
61,191
39,835
24,585
23,496
23,249
12,906
6,865
2,163
6,861
5,830
12,204
"8,118
7,770
3,241
31,502
24,293
17,560
2,971
29,551
20,922
24,998
13,830
580,452
629,201
633,745
423,121
43,785
35,064
18,676
23,849
411,343
401,265
323,346
329,584
82,212
72,541
69,012
63,419
92,077
86,329
74,647
70,355
48,802
50,418
55,125
46,845
45,020
42,830
45,510
43,920
90,619
106,210
94,898
95,473
26,561
28,880
21,587
30,827
13,483
12,365
12,021
11,424
34,539
34,030
27,223
24,799
5,822
6,804
11,673
23,305
32,658
30,042
36,335
31,868
926,921
906,778
790,053
795,668
50
57.
530
580
510
360
550
1,280
495
150
5,242
5,121
5,557
4,991
335
100
100
100
6,682
7,131
7,237
5,601
4,356
5,722
4,533
6,557
2,156
2,035
1,827
1,811
3,820
3,698
3,366
3,064
124
251
313
213
3,228
2,715
1,922
2,123
309,590
303,099
298,662
299,821
110,343 23,478
117,704 25,035
93,171 21,346
100,183 26,472
40,405
40,513
34,865
40,951
43,127
42,829
4,965
5,096
4,742
4,54^
19,700
23,582
23,414
28,600
590,014
653,492
633,360
656,286
56,377
54,247
53,012
53,947
130,875
123,008
123,795
123,479
76,102
79,858
79,069
79,106
12,029
12,235
10,390
10,588
10,521
10,304
10,318
10,009
2,955
3,144
3,708
3,101
50,496
52,140
47,326
39,757
192,814
230,046
257,838
279,176
26,592
32,164
26,069
26,687
43,007
42,673
39,074
36,229
16,661
19,385
18,757
17,070
24,538
20,494
18,091
14,223
7,047
5,882
6,409
5,823
2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES.
[In thousands of dollars.]
Number of reporting banks:
Dec. 26
Jan.2
Jan.9
Jan. 16
United States bonds to secure
circulation:
Dec. 26
Jan.2...
Jan.9
Jan.16
Other United States bonds,
including Liberty bonds:
Dec. 26
Jan. 2
Jan.9
Jan. 16
United States Victory notes:
Dec. 26
Jan.2
Jan.9
Jan. 16
United States certificates of
indebtedness:
Dec. 26
Jan.2
Jan. 9
Jan. 16
Total United States securities owned:
Dec. 26
Jan.2
Jan.9
Jan. 16
276
276
276
276
3,506
3,406
3,181
3,081
39,190
39,190
39,190
39,190
7,087
7,087
7,087
7,087
3,631
3,631
3,631
3,631
2,832
2,832
2,832
2,832
3,100
3,100
3,100
3,100
6,617
6,485
6,233
6,091
241,308
240,863
238,446
232,886
21,999
22,079
21,927
22,121
9,677
9,686
9,261
8,466
4,486
5,540
5,726
5,650
1,422
1,483
1,490
1,516
951
946
947
1,127
81,782
87,236
87,320
76,844
8,918
8,740
8,655
9,086
5,390
5,325
4,759
4,498
592
884
535
490
687
669
566
553
19,818
19,358
19,050
18,529
2,259
2,086
1,795
1,565
252
249
251
250
31,972
27,930
31,883
28,752
274,574
332,072
347,390
308,547
959 17,775
1,343 15,934
2,058 15,524
2,039 9,639
49,483
53,599
49,545
52,679
19,245
21,504
22,617
21,315
5,956
5,746
7,251
7,091
43,046
38,767
42,244
39,051
636,854
699,361
712,346
657,467
32,795
22,984
25,700 10,599 21,186
27,830 11,151 20,680
24,837 11,011 14,808
98,044
100,152
97,897
99,732
51,920 14,097
56,420 7,058
64,354 10,179
55,284 8,242
89,924
94,326
102,023
93,578
1,438
1,440
1,439
1,439
10,548
10,548
10,548
10,548
4,753
4,753
4,753
4,825
4,560
4,560
4,560
4,560
18,500
18,500
18,500
18,500
101,936
101,838
101,612
101,584
1,566 8,009
1,586 10,470
1,624 10,262
1,706 10,332
5,342
2,946
3,278
3,194
37,471
39,139
36,376
36,323
371,208
372,568
373,317
360,733
3,662
3,354
3,254
3,093
1,000
914
1,032
995
6,366
6,052
5,974
5,995
131,677
135,813
134,138
123,025
5,527
5,349
6,330
5,475
22,374
17,862
19,491
19,080
21,08.3
23 502
24,062
24,411
514,965
568,319
600,684
542,554
38,058 10,565 21,951 33,276
40,674 10,372 23,926 26,282
45,791 11,917 24,599 28,361
38,791 11,838 23,725 27,829
83,420
87,193
84,912
85,229
1,119,786
1,178,538
1,209,751
1,127,896
27,305 6,006
25,755 6,536
27,863 10,831
27,085 5,363
2,791
2,791
2,791
2,791
206
FEBRUARY, 1920.
FEDERAL RESERVE BULLETIN.
Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve Bank
cities and in Federal Reserve branch cities as at close of business on Fridays from Dec. 26,1919, to Jan. 16, 1920—Con.
2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES—Continued.
[In thousands of dollars.]
Boston.
New
York.
Philadelphia.
Cleve- RichAtland. mond. lanta.
s secured" by United
States bonds, Victory
noxes, and certificates:
28,163 483,335 97,437 24,636
Dec.26
30,550 481,621 92,455 22,727
Jan.2
481,088 91,554 22,964
31,217
Jan.9
29,031 493,568 84,119 22,275
Jan.16
Loans secured by stocks and
bonds, other than United
States securities:
Dec. 26
... 160,331 ,343,083 .88,618 130,859
163,798 ., 402,520 191 013 134,128
Jan.2
159,492 , 363, 675 191,495 127,335
Jan. 9
160,254 ,344,086 .84,911 125,931
Jan.16
All other loans and investments:
458,312 ,991,622 132,118 2?3,889
Dec. 26
466,308 ,011,587 H9,611 220,880
Jan. 2
467,267 ,994,904 133,382 221,391
Jan.9
476,886 ,023,795 135,813 228,109
Jan.16
Total loans and investments:
689,852 ,459,894 808,097 412,179
Dec.26
699,423 ,595,089 797,405 403,435
Jan. 2
700,220 , 552,013 518,454 399,520
Jan.9
705,222 ,518,916 T98,421 401,152
Jan.16
Reserve balances with Federal Reserve Bank:
58,528 613,552 53,043 22,888
Dec.26
669, 481 52', 601 24,563
68,976
Jan.2
71,487 608,772 63,025 23,756
Jan.9
660,997 58,193 27,780
72,215
Jan.16
Cash in vault:
129,971 16,914 9,265
19,804
Dec.26
123,660 16,213 10,301
18,882
Jan.2
125,979 15,356 9,219
16,323
Jan.9
113,743 13,110 8,807
14,318
Jan.16
Net demand deposits on
which reserve is computed:
593,704 4,589,921 567,352 201,291
Dec.26
631,310 4,765,497 578,653 205,774
Jan.2
616,108 4,669,929 589,194 210,347
Jan. 9
632,552 4,766,405 579,578 218,311
Jan.16
Time deposits:
308.253 13.294 168,414
Dec.26
40,896
41,432 31i;818 13,333 169,531
Jan.2
305,029 13.295 163,519
42,355
Jan.9
318,949 13,568 163,164
42,489
Jan.26
Government deposits:
238,682 34,661 14,851
26,879
Dec.26
31,101
323,851 40,771 11,292
Jan.2
38,596
320,364 48,153 10,837
Jan. 9
32,521
206;986 33,089 8,964
Jan. 16
Bills payable with Federal
Reserve Bank:
Secured by United States
war obligations370,888 75,845 21,535
35,239
Dec. 26
361,770 67,444 19,765
30.003
Jan.2
13;791
286,359 64,364 12,530
Jan.9
19,510 293,268 59,070 11,100
Jan.16
All other—
Dec.26
Jan.2
Jan.9
Jan. 16
Bills rediscounted with Federal Reserve Bank:
Secured by United States
war obligations47,714
Dec. 26
125,503 75,682 5,462
Jan.2
45,573
117,870 79,438 4,879
Jan.9
119,469 78,724 4,818
45,342
Jan.16
119,167 78,761 5,709
46,658
All otherDec.26
179,384 25,438 27,758
48,245
Jan.2
50,674 219,776 30,995 29,670
246,678 24,737 26,533
44,989
Jan.9
267,881 25,572 23,980
37,836
Jan.16
Chicago.
St.
Minne- Kansas
Louis. apolis. City. Dallas. Francisco.
13,889
12,782
12,932
12,501
6,376
6,166
6,094
6,273
75,483 22,908
74,433 22,820
69,726 22,132
67,333 22,327
8,186
8,356
8,250
7,779
6,266
17,663
16,680
15,598
14,862
6,377
6,610
5,279
6,830
371,335 25,879
384,854 28,685
382,557 123,638
388,269 124,749
14,735
14,994
15,232
15,518
32,698
33,197
33,395
33,178
67,083
65,461
65,227
64,674
55,374
54,892
56,570
56,160
796,818 .88,809
780,952 197,428
814,253 99,734
819,645 203,034
.07,504
.05, 522
.04,908
.03 048
91,111
88,854
88,623
84,071
7,831
8,643
7,495
6,162
8,414
6,126
7,178
6,787
2,262
3,215
2,317
2,333
2,465
?,847
2,704
2,409
46,707
44,707
42,130
38,916
69,069 50,489
65,015 53,563
63,148 51,896
65,101 52,748
937,172
986,118
994,785
,003,732
19,731
20,097
19,894
20,458
19,214
19,420
19,594
19,637
257,760
261,407
1,527
1,869
2,312
1,632
5,448
626
805
822
6,380
8,413
7,745
4,909
9,763
7,840
11,062
3,927
17,066
16,959
16,561
16,883
790,891
784,004
771,564
770,911
9,970 63,645
9,837 63,915
10,155 64,319
10,274 65,625
2,465,193
2,550,231
2,492,170
2,474,487
11,106 .68,511 51,338 102,554
13,522 68,193 51,017 388,114
12,183 62,457 55,251 391,411
12, 564 .61,615 57,228 389,582
5,947,534
5,937,965
5,974,030
6,029,105
),765
>,664
.44,592
.47,244
.47,582
.47,699
!29,426
231,907
227,216
225,182
130,592 32,667 13,158
141,843 36,617 13,998
141,418 38,420 12,230
145,080 32,871 12,749
13,091
12,228
17,099
20,726
5,053
7,829
8,260
10,035
33,696
35,995
33,653
35,388
992,513
1,078.990
1,032,793
1,088,983
4,801
4,4?1
4,391
4,006
2,544
2,122
2,221
1,932
10,894
10,973
12,137
10,218
255,585
247,693
242,330
218,098
240,826 .07,224 .58,898 65,705 275,833
260,547 .09,771 .66,321 84,686 281,484
263,827 09,590 .70,917 72,591 281,203
263,690 •10,802 L71,107 78,349 285,506
7,857,484
8,188,739
8,093,535
8,227,881
1,341,680
1,340,391
1,364,433
1,374,979
375,654
589,607
391,295
388,901
2,146
8,544
2,281
2,158
Total.
7,061
6,904
2,897
3,448
3,465
2,718
96,730 566,685 .0,323,404
95,680 556,181 L0, 450,738
96,048 557,203 [0,447,515
»57,319 10,402,399
21,520
21,638
70,016 21,829
70,326 22,057
12,166
12,819
11,930
11,930
3,593
3,607
3,747
3,804
207,474
211,143
205,244
209,345
1,141,203
1,156,044
1,135,334
1,158,459
42,388 21,790
36,864 20,859
30,088 20,012
18,477 10,341
2,294
415
3,132
2,900
4,699
2,703
3,019
2,151
26,362
20,940
14,954
1,294
21,246
16,139
18,214
9,459
440,827
507,430
510,486
328,636
45,942 20,727
53,716 22,929
45,570 14,768
44,294 23,918
3,613
2,705
14,082
15,151
12,896
13,264
4,775
15,625
18,462
16,347
19,360
18,196
622,556
607,246
496,833
509,786
262,732
450
1,280
345
2,939
2,632
2,667
2,536
687
687
587
558
2,347
2,133
2,710
2,411
1,118
2,761
1,517
1,685
3,639
3,282
2,824
3,187
3,454
2,915
1,554
90,246
95,157
72,518
14,886
14,881
11,794
13,569
1,593
2,418
1,419
1,470
1,143
1,138
1,074
1,470
1,264
1,146
1,392
1,171
33
28
90
79
1,310
1,578
1,224
1,191
266,113
260,685
259,967
263,385
3*3,866 15,661
34,560 19,638
31,638 20,704
32,697 20,885
1,429
1,210
1,085
985
13,612
17,300
15,823
20,109
455,397
520,954
502,696
530,731
2,054
1,960
1,427
1,461
20?
f JEfcEltAL RESfcitV£ BULLETIN.
Principal resources and liabilities ofmember banks in leading cities, including member banks located in Federal Reserve Bank
cities and in Federal Reserve branch cities as at close of business on Fridays from Dec. 26,1919, to Jan. 16,1920—Con.
3. MEMBER BANKS IN F E D E R A L RESERVE BRANCH CITIES.
[ In thousands of dollars. ]
Kansas
St.
New
CleveRichFranDallas Sancisco
Atlanta4 Chicago
mond
York
land
City
Louis
Districts District. 2 Districts District. District.^ District.* District. 7 District .8 District.*
Number of reporting banks:
Dec. 26
Jan. 2
Jan. 9
Jan. 16
United States bonds to secure circulation:
Dec. 26
Jan. 2
Jan. 9
Jan. 16
Other United States bonds, including
Liberty bonds:
Dec. 26
Jan. 2
Jan. 9
Jan. 16
United States Victory notes:
Dec. 26
Jan. 2
Jan. 9
Jan. 16
United States certificates of indebtedness:
Dec. 26
Jan. 2
Jan. 9
Jan. 16
Total United States securities owned:
Dec. 26
Jan. 2
Jan. 9
Jan. 16
Loans secured by United States bonds,
Victory notes, and certificates:
Dec. 26
Jan. 2
Jan. 9
Jan. 16
Loans secured by stocks and bonds, other
than United States securities:
Dec. 26
Jan. 2
Jan. 9
Jan. 16
All other loans and investments:
Dec. 26
Jan. 2
Jan. 9
Jan. 16
Total loans and investments:
Dec. 26
Jan.2
Jan. 9
Jan. 16
Reserve balances with Federal Reserve
Bank:
Dec. 26
Jan.2
Jan. 9
Jan. 16
Cash in vault:
Dec. 26
Jan.2
Jan. 9
Jan. 16
Net demand deposits on which reserve
is computed:
Dec. 26
Jan.2
Jan. 9
Jan. 16
Time deposits:
Dec. 26
Jan. 2
Jan. 9
Jan. 16
Government deposits:
Dec. 26
Jan. 2
Jan.9
Jan, 16
,
Total.
38
38
40
40
19
19
19
19
24
24
24
24
12
12
12
12
18
18
18
18
17
17
17
17
11
11
11
11
39
39
41
42
187
187
191
192
1,599
1,599
1,599
1,599
24,897
24,897
24,897
24,897
5,583
5,608
5,608
5,608
6,915
6,915
6,915
6,915
1,870
1,870
1,870
1,905
5,280
5,280
5,280
5,280
4,237
3,987
3,987
3,987
7,108
7,108
7,108
7,108
13,305
13,305
13,305
13,305
70,794
70,569
70,569
70,604
7,381
8,430
7,771
7,587
41,542
41,956
41,550
41,218
9,304
9,403
9,436
9,247
22,528
23,424
24,103
23,772
15,447
15,646
15,588
15,570
8,025
8,175
7,629
7,599
6,121
5,952
7,310
7,096
7,681
7,596
18,198
18,538
21,129
21,330
137,322
140,391
141,384
140,447
3,617
3,667
3,467
3,462
17,852
16,146
16,160
16,172
3,767
3,703
3,635
3,610
5,930
5,820
5,679
5,515
14,447
14,432
14,554
14,535
3,119
2,902
2,846
2,925
955
851
1,560
1,537
1,347
1,396
5,986
6,006
7,188
7,696
57,272
55,168
55,727
56,291
8,167
7,756
10,268
8,032
40,264
40,606
40,676
40,831
16,514
14,831
14,403
12,269
17,139
20,378
20,111
20,520
48,454
59,320
57,559
54,126
2,951
2,648
3,068
3,063
8,793
7,992
6,052
4,984
5,782
5,533
5,313
5,308
26,600
25,771
32,481
27,891
174,664
184,835
189,931
177,084
20,764
21,452
23,105
20,680
124,555
123,605
123,283
123,118
35,168
33,545
33,082
30,734
52,512
56,537
56,808
56,722
80,218
91,268
89,571
86,136
19,333
19,129
19,219
19,443
21,653
20,533
17,011
15,903
21,760
21,274
21,429
21,468
64,089
63,620
74,103
70,222
440,052
450,963
457,611
444,426
6,279
6,384
6,400
6,820
52,732
56,069
53,325
52,835
9,399
9,472
9,545
10,187
12,766
14,409
12,993
12,843
10,503
11,859
12,511
12,625
8,228
8,292
7,356
7,392
10,211
9,915
9,956
8,751
1,857
1,841
1,590
1,641
11,387
11,260
13,214
13,881
123,362
129,501
126,890
126,975
39,363
39,918
40,239
40,266
158,880
158,638
162,372
162,802
34,266
35,448
35,218
34,547
32,365
34,498
34,752
35,458
52,058
52,573
52,976
51,053
29,131
29,436
31,177
31,958
21,712
21,951
22,307
21,496
13,786
13,855
13,139
14,360
58,781
59,529
69,804
69,260
440,342
445,846
461,984
461,200
120,535
121,969
122,325
126,261
417,357
419,153
428,741
428,735
99,405
99,523
99,722
100,794
216,075
219,864
222,970
220,837
281,841
284,470
287,426
291,060
109,108
103,028
109,429
106,843
149,293
150,201
150,135
152,569
68,771
64,238
66,084
65,087
310,317
317,217
398,479
405,189
1,770,702
1,784,6G3
1,885,311
1,897,375
186,941
189,723
192,069
194,027
753,524
757,465
767,721
767,490
178,238
177,988
177,567
176,262
313,718
325,308
327,523
325,860
424,620
440,170
442,484
440,874
165,800
164,885
167,181
165,636
202,869
202,600
199,409
198,719
104,174
101,208
102,242
102,556
444,574
451,626
555,600
558,552
2,774,458
2,810,973
2,931,796
2,929,976
12,205
12,437
15,070
14,945
44,401
46,432
51,455
51,750
11,957
13,204
13,535
12,993
24,191
25,375
22,830
24,128
28,725
30,741
29,766
30,391
10,679
12,003
10,704
12,148
14,759
12,452
13,021
13,388
8,058
7,851
7,949
7,963
35,746
35,857
42,378
42,313
190,781
196,352
206,708
210,019
3,953
3,292
3,306
2,613
16,329
18,044
15,497
15,403
6,247
6,715
6,275
4,959
8,708
9,888
8,715
7,667
16,227
15,710
15,186
14,812
5,403
5,702
4,404
4,376
5,540
5,761
5,606
5,440
3,216
3,407
2,846
2,952
16,127
16,404
17,896
17,703
81,750
84,983
79,731
75,925
125,410
131,135
129,918
129,736
432,323
437,581
454,122
460,035
109,423
114,805
114,399
114,634
199,376
217,458
214,562
213,693
206,876
216,474
210,310
222,920
101,416
103,845
106,002
106,174
131,899
131,186
132,710
135,735
71,353
68,523
70,951
70,693
285,857
291,325
313,773
319,630
1,663,933
1,712,332
1,746,747
1,773,250
31,594
31,855
34,479
35,185
94,075
100,117
99,605
19,064
18,805
18,916
19,784
66,437
67,820
67,823
68,869
194,663
196,408
198,959
199,740
35,727
36,389
36,661
37,193
43,554
43,030
42,877
42,868
17,640
17,771
18,015
18,917
135,248
136,210
220,464
246,390
637,216
642,363
738,311
768,551
3,000
1,587
3,547
3,203
26,741
28,620
26,299
24,401
6,078
2,598
2,068
618
12,408
14,625
11,516
22,068
18,167
22,242
15,230
2,795
2,637
3,209
2,512
3,993
2,798
2,576
681
2,774
1,761
1,188
717
7,447
4,686
6,723
4,250
87,304
77,479
79,368
60,581
9"
9
208
FEBRUARY, 1920.
FEDERAL RESERVE BULLETIN.
Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve Bank
cities and in Federal Reserve branch cities as at close of business on Fridays from Dec. 26,1919, to Jan. 16,1920—Con.
3. MEMBER BANKS IN F E D E R A L R E S E R V E BRANCH CITIES—Continued.
[In thousands of dollars.]
New
RichCleveSt.
Kansas
FranDallas Sancisco
Atlanta Chicago
City
York
land
mond
Louis
District. 1 District.* Districts District.* District.* Districts District.7 Districts District.»
Bills payable with Federal Reserve
Bank:
Secured by United States war obligationsDec 26.. .
Jan. 2
Jan.9 . .
Jan. 16
All o t h e r Dec. 26
Jan 2
J an. 9 - - • Jan. 16
Bills rediscounted with Federal Reserve
Bank:
Secured by United States war obligationsDec. 2 6 . . .
Jan. 2
Jan.9 . .
Jan. 16
All o t h e r Dec. 26 . .
Jan. 2
Jan. 9
Jan. 16
19,431
18,559
18,265
16,010
65,020
61,608
56,669
54,590
29 234
29,228
27,373
31 818
28 048
33,535
31,433
34 105
5,469
5,310
6,404
6,452
15
15
85
60
12,691
12,725
8,920
7,068
5,062
5,659
5 468
4,770
12,325
12,275
15,355
11,726
198 082
197,660
194,335
187,154
4,099
3 983
4,483
3,521
25
335
100
100
100
4,474
4 098
4 668
3,681
2,541
2,434
1,717
1,719
5 336
6,289
4,565
3,856
5,484
5,401
5,079
5,143
1,495
1,490
2,350
1,950
1 943
950
950
978
2,569
2,358
2,299
2,405
1,814
1,767
1,086
977
91
223
223
134
1,803
1.011
612
892
23 076
21,923
18,881
18 054
4,151
1,867
3 260
3,026
11 478
9,384
9,378
8,743
10,447
9,756
9,581
• 8,228
18,265
14,908
13,911
11,275
5,666
5,200
4 330
3,349
7,726
9,341
8,692
12,014
13,064
13,647
15,474
15,751
2,787
3,157
2,846
2,745
5,083
5,035
6,294
7,150
78 667
72,295
73 766
72,281
Buffalo.
Pittsburgh and Cincinnati.
Baltimore.
New Orleans, Birmingham, Jacksonville, and Nashville.
Detroit.
20,802
18,761
24,448
20 115
Total.
•7 Louisville, Memphis, and Little Rock.
Omaha and Denver.
s9 El Paso and Houston.
Spokane, Portland, Seattle, Salt Lake City, and Los Angeles.
209
FEDERAL RESERVE BULLETIN.
FEBRUARY, 1920.
IMPORTS AND EXPORTS OF GOLD AND SILVER*
Gold imports into and exports from the United States.
[In thousands of dollars.]
During 11
During 10
days ending davs ending
Dec. 20,1919. Dec. 31,1919.
Total for
calendar
year 1919.
Total for
calendar
year 1918.
Ten days
ending Jan.
10,1920.
IMPORTS.
Ore and base bullion
United States Mint or assay office bars
Bullion, refined
United States coin
Foreign coin
..
.
..
Total
749
281
16,744
287
21
33,186
11,243
15,361
15,335
6
39,591
6,834
184
403
508
456
7,503
9,216
589
76,534
61,950
492
873
7,771
2,685
3
10,777
20
109,427
12,628
245,497
206
4,484
3,575
32,157
6,988
14
7,725
8,644
3
13,465
11
367,572
613
40,422
426
14,727
8,647
13,476
368,185
40,848
14,727
89
EXPORTS.
Domestic:
Ore and base bullion
United States Mint or assay office bars
Bullion, refined
Coin
Total
Foreign coin
..
Total exports
Excess of gold exports over imports since Jan. 1,1920, $14,235,000. Excess of gold imports over exports since Aug. 1,1914, $765,520,000.
Silver imports into and exports from the United States.
[In thousands of dollars.]
During 10
days ending
Dec. 20,1919.
During 11
days ending
Dec. 31,1919.
3,367
2,342
74,074
449
20
680
8,387
1,055
5,894
44,878
51
20,569
1,268
4,610
3,458
162
28
92
3,649
3,491
89,410
71,376
4,336
289
1,547
141
42
2,662
3,829
5
72,586
113,949
21,222
19
67,096
169,316
3,542
6,353
459
1,977
6,533
207,762
239,973
6,812
765
1,284
559
790
1
23,647
7,611
6,018
6,855
866
28
Total
2,049
1,349
31,259
12,873
894
Total exports
4,026
7,882
239,021
252,846
7,706
Total for
calendar
year 1919.
Total for
calendar
year 1918.
Ten days
ending Jan.
10, 1020.
IMPORTS.
Ore and base bullion
United States Mint or assay office bars
Bullion, refined
United States coin
Foreign coin
Total
115
17
746
EXPORTS.
Domestic:
Ore and base bullion
United States Mint or assay office bars
Bullion, refined
Coin
Total
Foreign:
Ore and base bullion
Bullion, refined
Coin
Excess of silver exports over imports since Jan. 1,1920, $3,370,000. Excess of silver exports over imports since Aug. 1,1914, $432,742,000.
210
FEDERAL RESERVE BULLETIN.
Estimated general stock of money, money held by the Treasury and by the Federal Reserve system, and all other money in
the United States, Jan. 1, 1920.
General stock of
monev in the
United States.
Gold coin (including bullion in Treasury)2
Gold certificates
'.
Standard silver dollars
Silver certificates
Subsidiary silver
Treasury notes of 1890
United States notes
Federal Reserve notes
Federal Reserve Bank notes
National-bank notes
Total:
Jan. 1,1920
Dec. 1,1919
Nov. 1,1919
Oct. 1,1919
July 1,1919
Apr. 1,1919
Jan. 1,1919
Oct. 1,1918
July 1,1918
Apr. 1,1918
Jan. 1,1918
Oct. 1,1917
July 1,1917
Apr. 1,1917
Held in
United States
Treasury
as assets of the1
Government.
Held outside
Held by or for
States
Federal Reserve United
Treasury
and
Banks and
Federal
Reserve
agents.
system.
$1,350,126,144
358,885,470
$2,787,714,306
$382,042,539
288,221,775
55,462,781
249,452,405
2,455,945
3 5,811,954
3,378,203
346,681,016
!,295,789,145
269,122,800
721,338,692
19,792,932
45,550,983
59,808,709
39,774,944
M9,767,671
263,013,340
8,472,855
4,956,666
$390,993,272
305,666,881
81,536,166
143,715,138
243,618,257
1,6S5,736
277,120,413
2,987,224,822
200,841,236
679,597,082
',961,320,139
',783,144,476
',721,561,106
662,898,238
588,473,771
586,752,855
780,793,606
391,008,277
742,225,784
480,181,525
256,198,271
642,264,856
480,009,884
312,109,272
604,888,833
617,776,320
604.552,807
616,213,318
578,848,043
550,628,454
454,948,160
380,246,203
356,124,750
339,856,674
277,043,358
242,469,027
253,671,614
258,198,442
2,044,422,303
1,993,145,199
2,083,098,639
2,087,709,369
2,167,280,313
2,195,151,766
2,220,705,767
2,084,774,897
2,018,361,825
1,873,524,132
1,723,570,291
1,429,422,432
1,280,880,714
952,964,705
5,312, 009,003
5,172; 222,957
5,033, 909,660
4,958. 975,551
4,842, 345,415
4,840, 972,635
5,105, 139.679
4,925, 987,177
4,367, 739,209
4,266, 800,719
4,255, 584,622
3,970 373,397
3,945, 457,556
4,100, 976,125
Amounts per
capita outside
United States
Treasury and
Federal Reserve
system.
$49.81
48.54
47.28
46.61
45.00
45.17
47.83
46.34
41.31
40.47
40.53
37.97
37.88
39.54
> Includes reserve funds against issues of United States notes and Treasury notes of 1890 and redemption funds held against issues of nationalbank notes, Federal Reserve notes, and Federal Reserve Bank notes.
• Includes balances in gold settlement fund standing to the credit of the Federal Reserve Banks and agents.
»Includes standard silver dollars.
* Includes Treasury notes of 1890.
FEBRUARY, 1920.
211
FEDERAL RESERVE BULLETIN.
FEDERAL RESERVE BANK DISCOUNT RATES.
Rates on paper discounted for member banks approved by the Federal Reserve Board up to Feb. 2> 1920.
Discounted bills maturing within 90
days (including
member banks' 15day collateral notes)
secured b y Federal Reserve Bank.
Treasury
Liberty
certificates bonds and
of indebt- Victory
edness.
notes.
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..,
Dallas
San Francisco
Bankers'
Trade
accept*
acceptances
ances
maturing
maturing
within
within
3 months. 90 days.
5
5
5
5
5
5
5
5
5
5
5
5
Discounted bills secured otherwise than
by Government war
obligations, also unsecured, maturing
within—
90 days
(including 91 to 180
member days (agricultural
banks'
and live15-day
stock
collateral
paper).
notes)
6
6
6
6
6
6
6
6
54
6
6
6
NOTE.—Rate on paper secured by War Finance Corporation bonds 1 per cent higher than rate on commercial
paper shown in column 5.
INDEX.
Acceptance liabilities of member banks
158
Acceptances:
Banks granted authority to accept up to 100 per
cent of capital and surplus
159
Cotton factor, eligibility of drafts drawn by, ruling on
162
Drafts drawn by an American manufacturer
for purpose of financing the purchase of goods
from a foreign seller, ruling on
162
Exchange charges on member bank's own acceptance, ruling on
162
Held by Federal Reserve Banks on December
31, distributed by classes
193
Purchased by Federal Reserve Banks during
December
191
Purchased during three months ending December, distributed by maturities
191
Agricultural paper held by Federal Reserve Banks
during December
193
Bank transactions, debits to individual account.. 185-187
Banking situation, discussion of
120
Branch bank at Oklahoma City, directors of
159
Branches, foreign, of American banks
159
Business and financial conditions during January.. 122
Special reports by Federal Reserve agents
127
Charts:
Cash reserves and excess reserves of Federal
Reserve Banks during 1919
147
Par j)oint map
194
Charters issued to national banks during January.. 160
Check clearing and collection:
Exchange charges on member bank's own acceptance
162
Map showing States in which banks remit at
par
194
Number of nonmember banks on par list
194
Operation of system, December 16, 1919-January 15, 1920
194
Clearing-house bank debits
185-187
Collateral notes held by Federal Reserve Banks during December
193
Commercial failures:
During December
160
During year 1919
160
Copper, lead, and zinc industries, terms of sale in.. 149
Credit, conservation of
116
Extract from address of Gov. Harding on,
before Massachusetts Bankers' Association... 116
Summary of circular letters sent out by Federal
Reserve agents regarding
116
Credit situation, discussion of
113
Credits to European countries:
Discussion of
114
Letter of Secretary Glass to president of Chamber of Commerce of the United States regarding
137
Statement by Herbert Hoover regarding
140
Cunliffe committee, final report of
119,141
Debits to individual account
185-187
Directors of branch bank at Oklahoma City
159
Discount and open-market operations of the Federal
Reserve Banks
188-193
Discount rates:
Advance in
118
Conference of clearing-house representatives
with Board to discuss
117,157
In effect February 2, 1920
210
Preferential rates of discount on member-bank
notes, ruling on
162,163
Prevailing in various centers
172
Discounts:
Bills discounted during December, distributed
by classes.
191
Bills discounted during three months ending
December, distributed by maturities
191
Bills held by Federal Reserve Banks during
December
193
Rediscounts and sales of discounted and purchased paper between Federal Reserve
Banks, October-December, 1919
192
Earning assets held by Federal Reserve Banks
during December
190
Earnings and expenses of the Federal Reserve
Banks, 1919
132-136
Exports, gold and silver
209
Failures, commercial:
During December, 1919
160
During year 1919
160
Federal Reserve Banks:
Discount and open-market operations of
188-193
Earnings and expenses of, 1919
132-136
Resources and liabilities of
195-198
Federal Reserve notes:
Interdistrict movement of, January 1, 1919December 31, 1919
202
Note account of Federal Reserve banks and
agents
200
Fiduciary powers granted to national banks during
January
119
Foreign branches of American banks
156
Foreign countries, financial aid to:
Letter of Secretary of Treasury to president of
Chamber of Commerce of the United States
regarding
137
Statement of Herbert Hoover regarding
114,140
Foreign credits, discussion of
113-115
Foreign exchange:
Discussion of
115
Low levels for sterling and marks
115
Rates in foreign countries Jan. 3-31
115
Report, final, of Cunliffe committee
119,141
Gold:
Excess reserve (free gold) during 1919
145-147
Imports and exports
120, 209
Reserves of principal banks of issue, 1900-1919. 144
Government financing during January, discussion of 113
Harding, Goy., W. P. G.:
On curtailment of credit, before Massachusetts
Bankers' Association
116
On discount rates, before conference of clearing-house representatives
117
II
OTDEX.
Page.
Page.
Hardware industry, terms of sale in
150
Hoover, Herbert, statement of, on foreign conditions and needs
114,140
Houston, Hon. D. F., appointed as Secretary of
the Treasury
121
Imports and exports, gold and silver
120, 209
Interest rates:
Conference of clearing-house representatives
with Board to discuss
117,157
Prevailing in various centers
172
International wholesale price index
164-167
Investment operations of the Federal Reserve
Banks during December
189
Iron and steel industries, terms of sale in.
148
Law department, preferential rates of discount on
member bank notes
163
Live-stock paper held by Federal Reserve Banks
during December
193
Loans to European countries, discussion of
113-115
Machinery-manufacturing industry, terms of sale in. 154
Maturities:
Bills discounted and acceptances bought by
Federal Reserve Banks during three months
ending December
191
Bills discounted and bought
199
Member banks:
Acceptance liabilities of
158
Number discounting during December
189
Number in each district
189
Resources and liabilities of
203-208
Money, stock of, in the United States
210
National banks:
Acceptance liabilities of
158
Charters issued to, during January
160
Fiduciary powers granted to, during January.. 161
Oklahoma City, directors of branch bank at
159
Physical volume of trade
174-184
Prices, wholesale, index numbers:
International
164-167
In the United States
168-171
Railway equipment, terms of sale in the industry.. 156
Report, final, of Lord Cunliffe committee
119,141
Reserves:
Changes in excess reserves (free gold) during
1919
145-147
Gold reserves of principal banks of issue, 19001919
144
Resources and liabilities:
Federal Reserve Banks
195-198
Member banks in selected cities
203-208
Rulings of the Federal Reserve Board:
Acceptance of drafts drawn by an American
manufacturer for the purpose of financing the
purchase of goods from a foreign seller
162
Eligibility of drafts drawn by a cotton factor.. 162
Exchange charges on member bank's own acceptances
162
Preferential rates of discount on member bank
notes
162,163
Sale, terms of, in the principal industries
148-157
Secretary of the Treasury:
Appointment of Hon. D. R. Houston
121
Letter from Secretary Glass to president of
Chamber of Commerce of the United States
regarding European credit
137
Statement of, regarding future Government
financing
113
Shipbuilding industry, terms of sale in
157
Silver imports and exports
120, 209
State banks and trust companies:
Acceptance liabilities of
158
Admitted to system during January
159
Terms of sale in the principal industries
148-157
Trade:
Foreign, discussion of
115
Physical volume of
174-184
Treasury financing during January, discussion of...
113
Wholesale price index numbers:
International
164-167
United States
168-171
o
FEDERAL RESERVE DISTRICTS
»
FEDERAL RESERVE BANK CITIES
O
FEDERAL RESERVE BRANCH CITIES
The branches at Helena, Mont., and Oklahoma City, Okla., have been authorized by the Federal Reserve Board but are not yet open for business.
@FedFRASER