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FEDERAL RESERVE
BULLETIN




ISSUED BY THE

FEDERAL RESERVE BOARD
AT WASHINGTON

JANUARY, 1917

WASHINGTON
GOVERNMENT PRINTING OFFICE
1917

FEDERAL RESERVE BOARD.
EX OPPICIO MEMBERS.
WILLIAM G. MCADOO,

Secretary of the Treasury,
Chairman,
JOHN SKELTON WILLIAMS,

Comptroller of the Currency.




W. P. G. HARDING, Governor.
PAUL M. WARBURG, Vice Governor.
FREDERIC A. DELANO.
ADOLPH C. MILLER.
CHARLES S. HAMLIN.
H. PARKER WILLIS, Secretary.

SHERMAN ALLEN, Assistant Secretary and Fiscal
Agent.
M. C. ELLIOTT, Counsel,

SUBSCRIPTION PRICE OF BULLETIN,
The Federal Reserve Bulletin is distributed without charge
to member banks of the system and to the officers and directors
of Federal Reserve Banks.

In sending the Bulletin to others the

Board feels that a subscription should be required.

It has

accordingly fixed a subscription price of $2 per annum.

Single

copies will be sold at 20 cents.

Foreign postage should be added

when it will be required.

Remittances should be made to the

Federal Reserve Board.

Member banks desiring to have the

Bulletin supplied to their directors may have it sent to not less
than ten names at a subscription price of $1 per year.




TABLE OF CONTENTS.
Page.

Review of the month
Dividends declared by Federal Reserve Banks
Purchase of United States bonds
Bank of England as foreign agent of Federal Reserve System
Growth of use of bankers' acceptances
Operation of clearing plan
Meeting of governors of Federal Reserve Banks
Class C directors appointed
Class A and B directors elected
Increased use of trade acceptances
•.
War loans of foreign countries
One hundred largest national banks
Commercial failures during November
Fiduciary powers granted.
New national-bank charters granted
Collaboration between the Federal Trade Commission and the Federal Reserve Board
Assessment for expenses of the Federal Reserve Board
Gold settlement fund
Informal rulings of the Federal Reserve Board
Law department
Business conditions throughout the 12 Federal Reserve districts
Charts:
Commercial paper, acceptances, and other investments held
Reserves and net deposits of Federal Reserve Banks
Distribution of discounted paper
Acceptances, distribution of
Federal Reserve Bank statements
Gold imports and exports
Earnings on investments of Federal Reserve Banks
Disc6unt rates in effect
IV




1
4
5
5
5
6
'7
7
7
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19
20
20
21
23
25
28
31
33
57
57
57
63
67
71
73
74

JANUARY 1, 1917.

VOL. 3

REVIEW OF THE MONTH.
The work chiefly receiving the attention of
the Federal Reserve Board during the month
of December has been the preparation of its
annual report to Congress, and, in this connection, the discussion and formulation of
amendments to the terms of the law which
it is prepared to recommend. Those amendments have been transmitted to the chairmen of the Banking and Currency Committees of the Senate and House in advance of
the Board's complete report, because of the
limited time available for discussion at the
short session of Congress. The considerations
which have led the Board to present these
amendments will be set forth in the annual
report shortly to bo transmitted.
The whole situation as to reserves, interest
rates, and demands for accommodation has
been such as to confirm the Board in the
belief, previously expressed, that the time has
come for the use not only of distinct caution
on the part of our banks, but also of the
adoption of a more adequate policy to control
the dangers growing out of the continued shipment of gold to the United States. In the
statement issued on November 28 the Board
used the following language :
"The Board does not share the view, frequently- expressed of late, that further importations of large amounts of gold must of necessity
prove a source of danger or disturbance to this
country. That, danger, the Board believes,
will arise only in case the inflowing gold should
remain uncontrolled and. be permitted to become the basis of undesirable loan expansions
and of inflation. There are means, however,
of controlling accessions of gold by proper
and voluntary cooperation of the banks or, if
need be, by legislative enactment."




No. 1

As a moans of providing the control of the gold
referred to in this statement, the Board suggested the advancing of the date on which
balances with city banks should cease to count
as reserves, from November 1, 1917, to February or March of the same year. This was
recommended mainly because it would eliminate fictitious reserve balances, and tend to
promote a better understanding of real reserve
conditions.
A more positive program has, however,
been felt to be necessary, and other amendments have in consequence been suggested by
the Board to Congress.
Among the amendments thus transmitted
to the appropriate committees
Proposed

amendments.

,. ^

O± C o n

gress "«

,-.

the

e 11

following

items:
(1) An amendment designed to advance the
date when reserve balances carried with city
correspondents will no longer count as reserves,
from November 1, 1917, to a date 60 days after
the passage of the amendatory act.
(2) A provision authorizing the Federal Re; serve Board to increase member bank reserves
| under carefully guarded conditions.
| (3) A revision of section 19 of the act re| lating to reserves so far as to eliminate matter
which has become obsolete by reason of the
actual effecting of reserve transfers, while at the
same time reserves carried with Federal Reserve
Banks are strengthened, and the amount and
character of funds to be carried in vault are
placed within the option of the member banks.
(4) An amendment authorizing State banks
to carry balances with Federal Reserve Banks
and to clear checks through them.
(5) Sundry minor amendments intended to
correct obvious defects or errors in existing law,

FEDERAL RESERVE BULLETIN.

JA.\-I7AHY 1,

1917.

or to improve the working of various phases of was, however manifest—a misunderstanding
to which Governor Harding made reference in
the legislation.
It will bo observed (hat the principal of the an address at Boston on December 14, in the
Board's proposed amendments following language:
Controlling a r e i n t e n d c d t W Q r k t o g e t ] i e r
'' Some of you may perhaps have seen a statethe gold supply.
toward the further application ment that was recently given to the press by
of the policy already mapped out in the state- the Federal .Reserve Board, in which the sugment regarding bank investments in foreign obli- estion was made that in view of abnormal congations issued by it on November 28. As noted itions throughout the world, it would be best
that the banks of this country should keep
above, it was there suggested that the inflow themselves in a liquid condition and proceed
of gold into the "United States i\.?cd not be con- along 'indicated lines of prudence and consersidered a menace to tho well-being of the com- vatism. 'The suggestion was made also that
munity, provided that satisfactory provision as the United States is fast becoming the banker
was made for the control of its movement and of foreign countries in all parts of the world,
and authoritative
accumulation. The question raised is how to investors should receive fullcase of unsecured
data, particularly in the
obtain and exercise sufficient authority in con- loans.
nection with such control. This, as is now
I know that there has been criticism of the
suggested by iho Board, can be accomplished Board's action in making this statement,
by wiping out the fictitious reserves carried in which has been given a signiii.cance neither
nor'intended. In its
the form of reserve balances, vesting the Board justified it was not the purpose reference to investors,
of the Board to
itself with power to increase when necessary make an attack, either open or covert, upon
the percentage of member bank reserves car- the credit of any Government, nor did it seek
ried with reserve banks, and rearranging the in its statement to reflect upon any particular
reserve requirements of the country so as to obligations, In my opinion, what the Board
place all reserve funds, except needed till had in mind wb.en it made its brief reference to
inventors, was simply this: American investors
ironoy, in the handy of the reserve banks have for many years been accustomed to buying
themselves. The gold movement has con- industrial secnriti.es--railroad obligations to a
tinued and imports into the United States dur- great extent. In dealing with- these securities
ing the four weeks between Novoirber I7 and cortam well-established rules have been develDecember 22, were 8109,655,000, while exports oped. The investor has acquired the habit of
requi
for the same period were $36,202,000. Net earning
imports of gold for tho five "weeks ending De- funds
cember 22 were $97,797,000, while net gold nitely whether he is offered a first mortgage
imports sinco January 1, 1916, were 8483,- bond, income bond, preferred stock, or common
801,000, compared with $409,050,000 for the stock. It Is the practice of every Issuing
house when offering securities to state all neccorresponding period in. 193 5.
essary details either over its own signature or
During the past month there have been fur- that of the head of the borrowing corporation. ;
ther developments in connection Nowhere is the importance of authentic and
Short i?n?v in- with the question of bank invest- complete information more fully understood
vestments.
and appreciated than in Europe, both in Engments in foreign obligations of land and on the Continent, and prospectuses
technically short terms. Subsequent to the for foreign loans contain all the important facts
statement issued by the Board on November 28 relating thereto, in a statement signed by an
and published in the last issue of the Federal authorized representative of the foreign govReserve Bulletin, short term securities which ernment or by the issuing house, or in some
cases by both.
Board sought merely to
were about to be offered were withdrawn. call attention to The fact that as this country
the
Some misunderstanding of the exact scope and has become an important market for foreign
application of the statement of November 28 securities, the same businesslike habits which




f

JANUARY 1, 1917

FEDERAL RESERVE BULLETIN.

Operations during the past month have
are well established regarding domestic loans,
should be developed in the marketing of foreign
been decidedly more active
Operations of , 7
-, .
,-% •
v
flotations."
tlian
dunn
reserve banks.
8 t l i e P^cedmg
Among other results the Board's statement
month, while at some of the
above referred to has had the banks there has been a sharp increase in the
Reserve con- e f f o c t f } e a d i
^
b a n k g
t o
demand for rediscounts. This was witnessed
ditions.
.
°
,
give greater attention to tne at New York, where about $9,000,000 in rereserve situation. Figures were given in the discounts and open-market purchases is
last issue of the Federal Reserve Bulletin to shown for a single day (December 7), and at
show the condition of member bank reserves Boston, whore a comparable increase in activity
in large cities on November 18, and develop- occurred. The banks showing the largest inments since that time have not been such crease in their bill holdings for the month were
as to indicate much change. According to as follows:
the latest data now available, the reserve
Nov. 24.
Dec. 22.
Increase.
percentage of the 60 member banks forming
835,268,000 845,855,000 910,687,000
the New York Clearing House Association New York...
Philadelphia
5,497,000
14,403,000
19,900,000
Cleveland...
7,138,000
10,745,000
3,607,000
figured against net demand deposits de- Minneapolis.
3,604,000
4,387,000
7,991,000
Richmond...
2,648,000
clined from 19.5 on November 25 to 18.9 on Chicago
3,658,000
6,306,000
2,428,000
10,006,000
12,434,000
1,972,000
2,582,000
4,554, COO
December 2, and rose to 20.5 on December 16, Kansas Cit5r.
at which figure it .stood on December 23.
So far as the general money market was conThis included returns from 31 banks which
are members of the Federal Reserve System cerned, the event of most interest was the
and from 29 nonmembers. Reports of the movement of the call-loan market in New York,
New York State Banking Department indi- occurring on December 4, which at one time
cate a decline of the reserve percentage for sent call-money rates as high as 15 per cent. It
the State banks from 26.2 for tho week ending was practically simultaneous with this disturbNovember 18 to 25.2 for the week ending De- ance that the increase in rediscounting at the
cember 23, while the reserve percentage for Federal Reserve Bank of New York became most
the trust companies is shown to have de- marked. A number of its members initiated
clined during the same period from 22.6 to rediscount operations in order to prepare them20.8. The average excess reserves of the selves for sudden demands, which it was thought
Philadelphia national banks, members of the might be brought to bear upon them. There
local Clearing House Association, declined was nothing to indicate that the increase in
from over 26 millions for the week ending No- rediscounting thus noted took place for the
vember 18 to about 16 millions for the week purpose of providing call money, but rather
ending December 23, while the average reserves as an incident of the general situation, of
of the Philadelphia trust companies belonging which the rise of call-money rates afforded one
to the association declined during the same index. The control by Federal Reserve Banks
period from nearly 6 millions to a little over 1 of a situation of the kind which developed during
the month will, of course, ordinarily be found
million.
in their regulation of the discount rate, and acReserves of the Boston banks for the week
cordingly there has been a tendency to slightly
ending December 23 were likewise lower than
stiffen rates of accommodation in view of the
about a month ago, though the decline was
change of condition referred to. The Federal
much smaller than in the case of the Phila- Reserve Bank of New York has advanced its
delphia banks.




FEDERAL RESERVE BULLETIN.

acceptance rate from 2f to 2|- per cent for 60day bills and to 3 per cent for 9G-day bills as
of December 11, while the Federal Reserve
Bank of Boston raised its rate for maturities
not exceeding 10 days to 3J per cent, for maturities of over 10 to 30 days, inclusive, to
4 per cent, and the rate on member banks'
collateral notes maturing within 15 days to 4
per cent. Changes in the Boston rates became
effective December 7. St. Louis has increased
its rates for 15-day and commodity 90-day
paper to 3J per cent.
Two conferences have been held by the Federal Reserve Board during the

JANUARY 1,

1817.

conversion of 2 per cent bonds should be generally made in the form of 3 per cent 30-year
bonds, the present plan of issuing half of the
converted securities in 30-year 3s and half in
one-year notes to be abandoned.
The Board has had under consideration for
Foreign Agen- some time the advisability of
cies.
authorizing the Federal Reserve Banks to establish one or more correspondents or agencies in Europe, and under
date of December 20, 1916, passed a resolution approving the application of the Federal
Reserve Bank of New York for authority to
establish an agency with the Bank of England.
Conferences at • ,
.-,
.,,
,
A statement touching this matter which was
Washington
P
month with representatives of the several Federal given to the press on December 25 will be
Reserve Banks. On December 4 the Federal found on another page of this issue.
Reserve Agents assembled in Washington for a
meeting which lasted until the 7th, while on
December 11 the governors of Federal Reserve Dividends Declared by Federal Reserve Banks.
Banks began sessions which extended through
the 13th. At both conferences conditions
Six Federal Reserve Banks had declared divirelating to the management and operation of dends prior to December of the present year,
the Federal Reserve System as a whole were while the remaining six banks were authorized
carefully reviewed, and suggestions were made to pay a 6 per cent dividend during December,
by the Board with reference to changes and 1916, for some part of the period since the
improvements in existing practice. The whole opening of the banks in November, 1914. The
subject of commercial paper and the use of details regarding dividends thus far declared
trade and bankers7 acceptances, was given par- are as follows:
ticular attention at these conferences, while
existing reserve conditions and the best method
Date of
authorization Amount of Period for which authorized.
of improving them was likewise discussed.
dividend.
by Federal
Reserve Board.
The Board further explained both to the Federal Reserve Agents and to the governors of the Boston
Dec. 21,1916
8246,891 Nov., 1914, to Dec. 31,1915.
131,150 Nov., 1914, to Mar. 31,1915.
16,1916
banks its ideas with reference to pending pro- New York.... Dec. 23,1916
128,340 Nov., 1914, to June 30,1915.
Philadelphia.. Dec.
Do
143,816
Nov. 27,1916
posals to amend the Federal Reserve Act, and Cleveland
2 151,940 •Nov., 1914, to Dec. 31,1915.
(lDec. ,1915
3 30,388
received suggestions regarding the application Richmond | Dec. ,1916
167,535 Jan., 1916, to Oct. 31,1916.
,1916
J1 June ,1916
129,198 Nov., 1914, to Dec. 31,1915.
of these amendments to conditions in the sev- Atlanta
\ Dec. ,1916
72,759 Jan., 1916, to June 30,1916.
fiJune ,1916
76,156 Nov., 1914, to Mar. 31,1915.
eral reserve districts. Clearing and collection Chicago
\ Dec. ,1916
286,575 Apr., 1915, to Dec. 31,1915.
iDec. ,1916
4 31,000 Nov., 1914, to Mar. 31,1915.problems were considered, and it was agreed St. Louis
4
60,000 Nov., 1914, to July 1, 1915.
Minneapolis.. Dec. 16,1916
66,707 Nov., 1914, to June 30,1915.
to issue a new corrected par list on January 1, Kansas City.. fl July ,, 1916
Jan.
1916
65,523 Nov., 1914, to June 30,1915.
\ Sept. ,1916
with monthly supplements thereafter for a six Dallas
78,813 July, 1915, to Dec. 31, 1915.
/i Sept 30,1916
12,341 Nov., 1914, to Dec. 31,1914.
months' period. Refunding of Government San Francisco \ Dec. 20,1916
433;ooo Jan.,1915, to Apr. 1,1915.
bonds also formed the subject of recommenda1
Date when dividend was declared.
Five per cent dividend for period November, 1914, to Dec. 31,1915.
tion. I t was the practically unanimous opin- 2 One per cent .dividend for period November, 1914, to Dec. 31,1915.
*
4
Preliminary estimate.
ion of the representatives of reserve banks that




FEDERAL RESERVE BULLETIN.

JANUARY 1, 1917.

Purchase of United States Bonds.
A comparatively small amount of United
•States 2 per cent bonds were offered for sale
by member banks of the Federal Reserve system to Federal Reserve Banks during the last
quarter of 1916. These bonds are offered under section 18 of the Federal Reserve Act
through the Treasurer of the United States.
Owing to the fact that Federal Reserve Banks
had already purchased more than $25,000,000
of this kind of bonds during the year 1916, the
Board did not require further purchases.
The resolution covering the matter was
adopted on December 27, 1916, and was as
follows :
Whereas it appears that the 12 Federal Reserve Banks have purchased in the open
market bonds in excess of the amount which
might have been allotted to such banks at the
end of this quarterly period on the basis
heretofore determined upon and announced
by the Board: Now, therefore, be it
Resolved, That it is the sense of the Board
that no necessity exists for enforcing the requirement provided for under section 18 of the
Federal Reserve Act at the end of this quarterly period ending December 31, 1916, and
that it will not, therefore, at this time require
the Federal Reserve Banks to purchase any of
the bonds which are offered for sale by member
banks through the Treasurer of the United
States under the provisions of section 18: Be it
further
Resolved, That the Secretary be instructed
to send a copy of this resolution to the various
Federal Reserve Banks and to the member
banks which have offered bonds for sale in
order that they may be notified of the action
of the Board in the premises.
Bank of England as Foreign Agent.
The following press statement was issued
December 25:
The Federal Reserve Board has authorized the
Federal Reserve Bank of New York to appoint
as one of its foreign correspondents and agents
the Bank of England, of London, England,
under the terms of the Federal Reserve Act.
Section 14 of the act permits any Federal
reserve bank "with the consent of the Federal
73976—17




2

Reserve Board to open and maintain banking
accounts in foreign countries, appoint correspondents, and establish agencies in such
countries wheresoever it may deem best for
the purpose of purchasing, selling, and collecting bills of exchange and to buy and sell
with or without its indorsement through such
correspondents or agencies bills of exchange
arising out of actual commercial transactions,"
so that a broad field of operations is opened
under it.
In granting the authority to establish this
agency the Board has authorized the Federal
Reserve Bank of New York to maintain accounts either with or for the Bank of England.
Operations both in England and in the United
States are thus possible.
Other Federal reserve banks may participate
in the agency relationship with the Bank of
England upon the same terms and conditions
that will govern the Federal Reserve Bank of
New York, if they so desire.
Bankers' Acceptances.,
The following figures compiled by the statistical division of the Federal Reserve Board
present the latest available facts with reference to the growth of the use of bankers7 acceptances:
Amounts of acceptances in the foreign and domestic trades
reported by banks and trust companies in Greater New
York under date of Nov. 11 and 29, respectively, compared with like figures for Sept. 12 and 20, 1916.
NATIONAL

BANKS.
Nov. 17.

Bank of New York
Merchants
Mechanics & Metals...
National City
Chemical
Atlantic
American Exchange..
Bank of Commerce
Hanover
Citizens' Central
Market & Fulton
•Importers' & Traders'.
National Park
East River
Irving
Chase
Garfield
Seaboard
Liberty.
Coal &vIron
Union Exchange
Battery Park
Bronx
Total.

$4,654,300

962,500
6,550,300
13,902,900
90,400
38,500
4,116,800
12,261,300
3,583,300
438.200
9,000
753,500
3,139,100
3,108,100
6,482,200
5,200
12,400
683,300
118,200

Sept. 12.
$4,260,900
451,900
5,363,400
8,419,500
116,100
37,900
4,416,000
9,182,700
3,225,000
26,400
13,500
25,000
3,244,900
89,200
2,652,000
7,614,200
5,200

438,000
12,200

550,000
51,600
41,500
126,300
10,000

61,359,700

49,923,200

FEDERAL RESERVE BULLETIN.

JANUARY 1, 1917.

Amounts of acceptances in the foreign and domestic trades,
etc.—Continued.
TRUST COMPANIES.
Nov. 29.
Bankers' Trust Co
Astor Trust Co
Guaranty Trust Co
Fidelity Trust Co
Lawyers Title & Trust Co
Columbia Trust Co
New York Trust Co
Broadway Trust Co
Central Trust Co
Commercial Trust Co
Equitable Trust Co
Farmers' Loan & Trust Co
Hudson Trust Co
Peoples' Trust Co., Brooklyn
Franklin Trust Co., Brooklyn
Total

556,400
200,000
043,200
33,300
166,700
761.800
100,000
953,500
650,000
1,000
622,600
097,900
4,000
100,000
715,000
89,005,400

STATE BANKS.
Nov. 29.
Corn Fxchange Bank
W. R. Grace & Co.'s Bank

$2,952.200
490;100
3,442,300

Total
RECAPITULATION.

At the conference of Federal Reserve Agents
held in Washington on December 4-7, a committee to which was submitted the question
of bankers7 acceptances, presented a report in
Sept. 20.
the course of which the following statement
$8,957,600 was made:
"4i,'635,'5(J6
"The entrance in a substantial way of the
American bankers7 acceptances in ordinary
1,351,700
commerce, and the adoption by many bankers
997,000
1,450,000 of this method of financing not only imports
and exports, but domestic trade, contemplated
7,021,600
7,399,600 under the recent amendment to the Federal
Reserve Act, are most encouraging signs of
progress. They of themselves justify the en68,213,000 actment of the Federal Reserve Act, and should
be encouraged in every possible way.
"While in the beginning accepting was
limited to the larger banks, most of which were
Sept. 20.
experienced in foreign transactions, and were
familiar with and informed on acceptances,
SI, 971,100 now the question of acceptances is creating a
wider interest, and officers of reserve banks
1,971,100
are frequently being asked to supply information, and reply to various inquiries involving
limitations, restrictions, privileges, etc.77

| Nov., 1916. Sept., 1916.
National Banks
'. '$61,359,700
Trust companies
! 89,005,400
State banks
! 3,442,300
All banks and trust companies in greater New !
York
153,807,400

§49,923,200
68,213,000
1 , 971,100
'

Operation of the Clearing Plan.

The following table shows briefly the clearing
operations of the Federal Reserve system for
Acceptances held by Philadelphia national banJes on Nov. 17the monthly period ending December 15, 1916,
and Sept: 12, 1916.
with comparative figures for each of the four
Sept. 12.
Nov. 17.
preceding months:
Corn Exchange National Bank
Fourth Street National Bank
Franklin National Bank
Girard National Bank
Market Street National Bank
Philadelphia National Bank
Tradesmen's National Bank
Union National Bank
Total.

31,812,600
176,400
5,300
1,283,300
208,300
4,376,800
777,300
8,640,000

120,107,300

8181,600 I
119,100 I
3,700 •
100,000 !
85,000 |
3,602,400 |
966,000 i
26,600 i




Bank.

5,081,400

In addition the Philadelphia national banks i
on November 17 show contingent liabilities '
as indorsers on acceptances bought and
resold, as follows: Girard National Bank r
$2,871,800; Philadelphia National Bank, $15,500.
For all trust companies and State banks in
Maryland the following figures showing aggregate liabilities on acceptances in the foreign
and domestic trade are available:
Sept. 12, 1916
Nov. 17, 1916

Operations of the Federal Reserve interdistrict clearing system, Nov. 16 to Dec. 15, 1916.

$2,728,100
3,308,100

Average
number
of items
handled
dailv.

Average
amount of
daily
clearing.

Non member banks
Member
from
banks
which
in the
checks
district. \ are collected at
par.

Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City
Dallas
,
San Francisco.,

38,479 813,153,317
42,551 28,307,438
30,081 16,545, 774
15,873
8,320,355
17,064
8,062,500
13,851
4,689,214
120,452 13,220,268
10,039
8,402,904
15,613
8,828,269
13,782
7,791,296
12,734
6,521,235
5,519
1,761,162

402
625
632
754
520
390
759
941
621
521

242
313
292
496
286
440
1,269
881
1,100
1,412
238
1,096

Total Nov. 16 to Dec. 1 5 . . .
Oct. 16 to Nov. 15...
Sept. 16 to Oct. 15...
Aug. 16 to Sept. 15..
July 15 to Aug. 15...

236,038
227,489
204,891
177,397
133,113

125,603,732
115,061,224
97,666,107
78,559,704
59,301,696

7,627
7,623
7,618
7,618
7,624

8,065
8,059
7,459
7,449
7,032

1

Does not include Government checks averaging 2,062.

JANUARY 1,

1917.

FEDERAL RESERVE BULLETIN.

Meeting of Governors.

Class C Directors Selected.

Governors of Federal Reserve Banks held a
meeting in Washington, December II to 14,
at the close of which they gave out the following:
A conference of the governors of Federal
Reserve Banks was held at the Shoreh&ixi
Hotel, Washington,"D. C., December 11 to 14,
inclusive. There were present Messrs. A. L.
Aikon, governor of the Federal Reserve Bank
of Boston; G. J. Sea}', of Richmond; C. J.
Ehoads, of Philadelphia: EoIIa Wells, of St.
Louis; Theo. VYold, of Minneapolis; J. A,
McCord, of Atlanta; Vice Gov. RT H. Treman,
of Now York: J. Z. Miller, of Kansas City; E. L.
Van Zandt, of Dallas; E. R. Fancner, of
Cleveland; J. B. McDougal, of Chicago; Mr.
J. F. Curtis, counsel of "the Fedora! Reserve
Bank of Now York and secretary to the conference; also Mr, Marcus Walker, manager of
the New Orleans branch of the Federal. Reserve Bank of Atlanta; Mr. L. II. liendricks,
assistant cashier of the Federal Reserve Bank
of Now York: Mr. C. C. Bullen, auditor of the
Federal Reserve Bank of Boston; and Mr. A.
II. liale, auditor of i'Jie Federal Uoservo B&nk
of St. Louis.
The governor^) 'hold several meotings with
the Federal lieserve Board and "with various
committees of tho Board, at "winch topics connected witii the administration of th.o banks
were taken up for discussion and recommendations made.
Among the subjects considered were the following: Disposition of Government bonds; Federal Reserve Banks as iiscai agents of the Government; uniformity in reports of reserves z*id
enforcement of reserve penalties; report of the
transitmanagers' conference held at Chicago; report of the auditors' meeting held at Chicago;
handling of gold settlement fund; retirement of
national bank notes: vault reserves; purchase of
domestic and foreign acceptances; conversion of
3 per cent Treasury notes into 30-year 3 *per
cent bonds; treatment of organization expenses; collections and clearances; loans on farm
land and other real estate; national banks as
insurance agencies; the accumulation of. gold
by Federal Reserve Banks; and the establishment of branches or agencies of Federal Reserve Banks.
The conference adjourned to meet subject
to call without any definite time or place for
the next meeting.

The Federal Reserve Board has thus far
made selection of the following Class C directors
in cases of vacancies where terms expire on
December 31, 1916. Terms of directors are
for three years unless otherwise indicated.
Where designation has been made for Federal
lieserve Agent or Deputy Federal Reserve
Agent the term is for the year ending December 31, 1917:




Disirict No. I, Boston.—Walter S. Hackney.3
District No. 2, New York.—Pierre Jay.2
District No. 3, Philadelphia.—Henry B. Thompson.1
District No. 4. Cleveland.—Lyman r.«. Trcadway.1
District No. 5, Richmond.—James A. -Joricure.1
District No. 6, Atlanta.—W. II. Xettig.
District- No. 7. Chicago.—William A. Heath 3 (two-year
term). E. T. Meredith (tliree-year term).
District No. 8, St. Louis.
District No. 9, Minneapolis.-—John W. Black.
District No. 10, Kansas City.—F. W. Fleming.
District No. li, Dallas.—!VI. 0. Wocton.
District No. 12, San Francisco.

Class A1-and B Directors Elected,
The following Ckss A and B directors have
beers, elected by the Federal Reserve Banks
for the three-year term beginning January 1,
1917:
District No. I, .Boston:
Glass A—ThoTxias W. FaiTiam, New Haven, Com::.
Class B- E. R. Morse, Proctor, Yt.
.District No. 2, Ne^v York:
Class A—"William Woornv&rii, Nev-' York City.
Class B—K. K. Tovr.no, New York City.
District No. 3, Philadelphia:
Class A—M. 7>. Murphy, Clarks (keen. Fa.
Ckss B—Alba B. Johnson, Philadelphia, Pa.
District No. 4, Cleveland:
Class A—W. S. Rowe, Cincinnati, Ohio.
Class B—R. P. Wright, Erie, Pa.
District No. 5, Richmond:
Class A—J. F. Bruton, Wilson, N. C.
Class B—J. F. Oyster, Washington, D. G.
District No. 6, Atlanta:
Class A—F. W. Foote, Hattiesburg, Miss.
W. H. Hartford, Nashville, Tenn.
1

Designated as Deputy Chairman and Deputy Federal Reserve Agent.
2 Designated as Chairman and Federal Reserve Agent.

FEDERAL RESERVE BULLETIN.

District No. 7, Chicago:
Class A—J. B. Forgan, Chicago, 111.
Class B—John W. Blodgott, Grand Eapids, Mich.
District No. 8, St. Louis:
Class A—Sam A. Zicgler, Albion, 111.
Class B—W. B. Plunkett, little Eock, Ark.
District No. 9, Minneapolis:
Class A—E. W. Decker, Minneapolis, Minn.
Class B—F. R. Bigolow, St. Paul, Minn.
District No. 10, Kansas City:
Class A—W. J. Bailey, Atchison, Kans.
Class 1)—M. L. McClure, Kansas City, Mo.
Class B—Harry W. Gibson,1 Muskogee, Okla.
District No. 11, Dallas:
Class A—B. A. McKinney, Durant, Okla.
Class B—Marion Sansom, Fort Worth, Texas.
District No. 12, San Francisco:
Class A—C. K. Mclntosh, San Francisco, Cal.
Class B—E. H. Cox, Madera, Cal.

Trade Acceptances.
Steady progress is being made at Federal
Reserve Banks in promoting the use of the
trade acceptance. At the meeting of Federal
Reserve Agents in Washington, held on December 4-7, the subject was carefully discussed,
and the committee on trade acceptances submitted the following report:
This committee, which made a report to the
last conference of Federal Reserve Agents, has
endeavored to keep in touch with the progress
these acceptances have made since that time
with a view to bringing in this additional
report, which is now submitted.
Your committee believes that there has been
a gradually increased use of trade acceptances,
but that the movement is not gaining strength
in proportion to the opportunities and influence
of the Federal Reserve System. While considerable satisfactory work of development and
education has been seen in various parts of the
country,, the efforts so far appear to be scattered and without cooperation, especially
among the Federal Reserve Banks. Since the
trade acceptance plan is acknowledged to be
scientific and preferable to the book account
system, and since the Federal Reserve Board
has recognized and given the system authority
and standing among the federal Reserve
Banks, there should be no reluctance on the
part of any Federal Reserve Bank to push the
movement with vigor and persistence. It is
i Elected tofillvacancy caused by resignation. Term expires Dec.
31,1917




JANUARY 1, 1.017.

the belief of the committee that development
of the trade acceptance plan should be part of
any general publicity scheme, if such action
should be taken by the conference and approved by the Board.
The committee is of the opinion that the best
results now can be obtained through trade
organizations, trade papers, chambers of commerce, credit men, etc. Particularly is it
desirable to get a number of users of acceptances in a single trade or industry, as others are
encouraged to their use if it bo noticed that
their competitors have adopted the plan. One
of the principal arguments for delay by many
concerns who are interested and convinced is
the fact that their competitors continue the
book account plan, and they 'can not afford to
risk alone the innovation and changed methods.
The committee also wishes to point out the
desirability of having concerns who are obtaining trade acceptances in settlement of their own
purchases. We are a^dvised that a number of
companies have a printed form of trade acceptance drawn on themselves which they send to
the concerns from whom they purchase, requesting that drafts on them accompany all
invoices sent.
The committee has a list of 70 companies
who are using trade acceptances with satisfaction. These users of trade acceptances represent 40 different kinds of businesses and are
located in 18 States. The largest number of
users are dealers in cotton, cotton goods, and
cotton mills. The lumber business seems to
rank next to the cotton business in the number
of concerns using acceptances. While the acceptance plan seems to find a readier reception
among concerns of smaller capital, the list is
not without a number of names of high rated
compamies. The information in respect to
the number of companies using trade acceptances and the above analysis thereof is based
on very incomplete data obtained by inquiry
from the Federal Reserve Banks, and in our
opinion the list of companies referred to represents only a small proportion of the cc-ncerns
that have made a beginning in substituting
the trade acceptance for the open account.
We recommend that each Federal Reserve
Bank secure standard forms of trade acceptance and supply these to their member banks,
accompanied by a circular explaining the
advantages, with all essential details.
D. C. WILLS, Chairman.
FREDERIC H. CURTISS.
PIERRE JAY.
W. F. RAMSEY.

JANUARY 1,

FEDERAL RESERVE BULLETIN.

1917.

Mr. 11. H. Treman, acting governor of the fear of losing customers who may not, at first,
Federal Reserve Bank of New York, lias re- take kindly to the change to definite maturicently discussed the subject of trade accept- ties, and there is also the feeling that as business has been successfully conducted with the
ances in an address delivered before the Na- open book account, why change to a new
tional Hardware Association of the United system, even if better, which would involve
States 'and the American Hardware Manufac- trouble and expense in the change.
(h) That man}" a successful business man of
turers Association. Mr. Treman enumerated
to-day would never have attained success if
the following objections and advantages inher- his business had not been fostered and assisted
ent in the trade acceptance plan:
by the extension of credit by the jobber and
Let us now consider the objections, and later | manufacturer beyond the actual terms, when
the advantages connected with the use of the a crop failure or other catastrophe had overtaken him.
trade acceptance.
Those objections represent the sum total ofAmong the objections offered to the profered during several months of discussion of
posed change are:
(a) That open book accounts are preferable the topic. Those just outlined undoubtedly,
in the United States where wholesale distribu- at first glance, apparently present a case against
tion is conducted over great distances, where the trade acceptance system, but, while some
purchases arc made frequently and in small of these objections arc real and valid, a close
amounts, and where variations in trade dis- analysis will show that most of thorn arc based
counts and differences in the terms as to length either on an overconscrvativo desire to cling to
present methods, however crude and unscienof credit exist.
(b) That if trade acceptances were generally tific, or a narrow viewpoint that sees only local,
used hy the two million (estimated) business limited or temporary conditions, or (and this
firms in the country and a large proportion of is perhaps the principal basis) a 'total lack of
the acceptances should be discounted, it would comprehension of what the trade acceptance
entail groat increase in clerical force, books, system is, and how flexibly it can be accometc., by banks, and would tend to an over- modated to our business needs.
Let us now consider the advantages claimed
extension or inflation of credit.
(c) That in ordinary practice some drafts by those who favor the change. They state:
(a) That open book accounts, i. e., dead capwill be lost or mislaid, and in other cases they
will not be paid at maturity, causing default. ital, will be transferred *iiito trade acceptances,
(d) That the acceptance system does not which is live capital, i. e., self-liquidating
take into account the necessity of examination commercial credit paper available for the payof goods before acceptance by the merchants ment of debts, and when discounted, like
to guard against shortage, quality not up to promissory notes, becomes a basis for issue of
samples, and other just causes for returning currency and bank reserves under the Federal
liesorvc Act.
merchandise.
(o) That they show on their faces that they
(e) That the best merchants will continue
to borrow the capital they need on their own arise out of a bona fide commercial transaction.
(c) That acceptances, being two-name drafts,
single name promissory notes, and by continu^
—.v u v W v v of open ^ v ^ accounts, they are safer, more liquid for bankers to hold,
ing the, rpractice — v^v^x book ^ w v ^ . ^ , v ^ j j are safer, more liquid for bankers to hold, and
will give the buyer longer credits than those j more likely to be paid at maturity than singlewho adopt the trade acceptance plan, and thus | name promissory notes.
will hold and increase their business to the | (d) That banks would have better knowledge
detriment of their competitor.
of a borrower's financial position through trade
(/) That it is suggested that bankers "will not drafts instead of direct notes.
favor this change because they arc content to
(e) That the trade acceptance system would
loan their money on single name paper on which practically eliminate the overdue accounts
they secure higher rates than they will be able which, according to the records submitted from
to do when they discount trade acceptances.
jobbers and manufacturers herewith, amount
(g) That there is a natural prejudice on the to about 30 per cent of the sales, and if legal
part of the seller against taking "the initiative proceedings are necessary, a trade acceptance
in bringing about a better credit system for is much better to have than an open book
T

J




J

"1

• i 1

J

1

I1

J

1

•

/*

*"
B

J I

II

1

'I

\

10

FEDERAL RESERVE BULLETIN.

account, because the seller has an acknowledgment in writing of the account.
(£) That the use of the trade acceptance
would remove the necessity for the manufacturer or jobber, with somewhat limited capital,
borrowing so heavily in order to act as banker
•in supplying credit to customers, as is now
done to such an unreasonable extent.
(g) That the trade acceptance "tyould reduce
loss by bad debts by effecting prompt payments, and would save the interest on overdue
accounts.
(h) That trade acceptances would tend to
educate the retailer, who will have acceptances
to meet at certain definite times, not to overbuy, thus tying up too much of his capita;!, or
to extend too long credits to his own customers,
both of which are serious defects in the present
business system.
(i) That trade acceptances will tend to eliminate the abuse of the extension of credit to
those retailers who, having but little real capital
themselves invested, learn to conduct their
business principally on the credit extended to
them by rival jobbers or manufacturers.
(j) That those who settle by trade acceptances will put themselves into the class of preferred buyers, the same as those who discount
for cash, as against those who will decline to
give a trade acceptance and. insist upon a long
open-book account. Ultimately goods will be
sold to those who demand long credits on the
basis only of higher pfice over those who discount or send trade acceptances.
(Jc) That the trade acceptance system, even
with small retailers, would work a great improvement on our whole merchandising system,
and tend to make the untrained and unsystematic tradesman of less menace to his competitor who does business on sound methods.
(I) That trade acceptances would curtail or
end the bad practice of taking unearned or
unauthorized discounts, would curb the unfair
practice of returning merchandise after shipment has been made, would tend to stop the
pernicious habit of assigning or hypothecating
book accounts to secure working capital, and
would operate to reduce the overhead costs of
doing business and enable both manufacturer
and jobber to sell at lower prices.
(m) That the Federal Reserve Board, recognizing the advantages of the " trade accept-




JANUARY 1, 1917.

ance," has authorized special rates of discount
for this class of paper, and that all Federal
Reserve Banks in establishing rates have made
a rate generally one-half per cent of 1 per cent
lower for trade acceptances than the rate for
promisso^ notes.
Probably other advantages can be cited, but
these will bo sufficient to indicate the principal
reasons given for the adoption of the trade
acceptance system, and they would seem to be
convincing.
Loans of Principal Belligerent Nations.
The following compilation basedjehiefly upon
official materialfshows tbe*growth|of national
indeb tedness|since|the outbreaKof I the waif to
the most recent available date. Figures are
shown for the UnitedfKingdom, France, Russia,
Germany, Austria, and Hungary.
UNITED KINGDOM.
BORROWINGS OF'2 THE f BRITISH

GOVERNMENT.

According to the London Statist of November 18, the British public (both funded and unfunded) debt at the end of March, 1914, stood
at £707,654,000, from which it was raided to
£1,165,801,702 at the end of March, 1915, and
to £2,196,439,245 at the end of March, 1916.
Since April 1, 1916, an additional £1,052,000,000 of loans have been raised, including the
recent American loan of about £60,000,000.
Ab6ut the middle of November the national
debt of the country amounted to approximately
£3;250,000,000, of which between £600,000,000
and £700,000,000 represented loans to allies
and dominions.
The following table, taken from the Statist
of November 18, 1916, shows the war borrowings of the British Government during
the present fiscal year (since Apr. 1, 1916)
and the total borrowings since August 1,
1914:

JANUARY 1, 1917.

11

FEDERAL RESERVE BULLETIN,

Apr. 1,1916, j Total from
to Nov. 11, Aug. 1,1914, to
1916.
Nov. 11,1916.
Treasury bills (all maturities)
£536,554,000
£1,087,022,000
6 per cent exchequer bonds due February,
1920
;..
89,342,000
89,342,000 I
27,910,000
War expenditure 2-year certificates
27,910,000 !
35,800,000
War savings 5-yoar certificates
34,550,000 I
95,106,000
" Other'' debt i
86,106,000 I
56,896,000
Ways and means advances
37,000,000 i
2
331,798,000
3} per oent war loan, 1925-1928
31,547,000
3 per cent exchequer bonds, March, 1920
4£ per cent war loan, 1925-1945 »
582,630,000
5 per cent United States of America loan
^(October, 1915)
50,820,000
5 per cent exchequer bonds: *
34,222,000
34,222,000 j
Due October, 1919
237,829,000
84,140,000 j
Due December, 1920
62,464,000
Due October, 1921
62,464,000 j

FRANCE.
GROWTH OF THE FRENCH NATIONAL DEBT SINCE
AUGUST 1, 1914.

The following data regarding French public
expenses authorized to the end of the calendar
year 1916, and the growth of the French national debt up to August 31, 1916, are taken
mainly from the financial statement submitted
to the French Senate on September 15, 1916,
by M. Eibot, the French Minister of Finance,
and reprinted in the official Bulletin de Sta992,288,000 j 2,723,386,000
Total.
13,253,358,000 tistigue et de Legislation Gomparee for SepEquivalent in United States dollars. 4,828,970,000
tember, 1916.
J Through conversions £62,774.400 in issue Mar. 31, 1916.
2 £899,997,072 in issue Mar. 31,' 1916, owing to conversions.
A comparison of the Government expendi3
Includes inter alia, 5 per cent United States of America collateral loan,
September, 1916, for $250,000,000.
tures and ordinary receipts effected between
4
Issue suspended.
August 1, 1914, and July 31, 1916, indicates a
United Kingdom currency notes issued and held by the Bank deficit of about 35 billion francs. To this
of England, also portions secured by coin and bullion and
total should be added the amounts advanced
by Government securities, 1914-1916,
by the French treasury to the allied Govern[From the London Economist.]
ments which up to July 31, 1916, aggregated
[000's omitted.]
about 1,650 million francs, also amounts
1
' Secured
Secured
advanced to chambers of commerce, to sociePer ! byOovi "and
cent. i ernment
•j bullion.
- isecurities. ties for assisting wounded military persons,
and advances to the State railroads for capital
1914.
!
expenditures, pending the issue of bonds.
£11,423
Aug. 26
1 £21,535
9,104
£4,500 15.8 : £10,924 Considerable payments were also made for
Sept. 30
! 28,409
13,924
5,778
9,500 30.3 i
Oct.28
1 31,367
13,924 the benefit of the departement du Nord and the
5,772
13,500 39.6
Nov. 25
! 34,134
9,924
9,286
18,500 48.1 '
Dec.30
i 38,478
food distribution service for the civil popula1915.
31
11,924 tion.
22,500 63.6
35,409
Jan. 27..
Moreover, the departements, communes,
26,500 72.3
36,661
8,924
1,079
Feb. 25..
27,500 69.1
39,802
3,520
8,623 the State Savings Bank (Caisse des depdts et*
Mar. 31..
27,500 65.3
42,099
5,837
Apr. 28..
8,623
28,500 63.0
45,160
7,237
May 26..
9,586 consignations), army treasuries, and various
28,500 61.3
46,577
8,655
June 30..
9,586
28,500 61.8
45,387
4,250
Julv28..
9,586 other public bodies had to draw upon their
28,500 52.5
52,201
14,759
Aug. 25..
9,586
2S3 500 39.5
72,022
22,969
Sept. 29..
20,400 current accounts, which at the beginning of
28,500 35.0
81,852 i 8,727
Oct. 27..
44,621
28.500 31. 5
90,226 j 17,114
Nov. 24..
44,621 the war showed quite large credits.
28; 500 27.6
103,125 j 20,536
Dec. 29..
54,621
1916.
I 5,245 28,500 29.2 61,577 The result of all these operations, while not
Jan. 26..
97,758
65,203 affecting directly the State expenditures, adds,
28,500 28.7
6,450
Feb. 23..
99,345
71,121
28,500 26.6
7,902
Mar. 29..
106,691
75,718 however, about 3 billions of francs to the def28,500 24.5
12,876
Apr. 26..
116,244
83,775
28,500 24.0 |
7,155
May 3 1 . .
118,550
8S, 758 icit burden of the treasury, which accordingly
28,500 23.4
7,005
June 28..
122,099
92,157
6,338 i 28,500 22.6
July 26..
125,486
97,529 by July 31, 1916, had reached a total of 38
28,500 22.0
5,879
Aug. 30..
129,659
99,321
28,500 21.6
5,964
Sept. 27..
131,525
28,500 21.1 i 103,862 billion francs.
5,575
This deficit was covered by the
Oct. 25..
135,319
105,323
28,500 20.9
5,448
Nov. 29..
136,582 j
following loan operations:
I




12

FEDEEAL RESERVE BULLETIN.

Million francs.

5 per cent rente loans yielding a total of
Two loan operations in United States
National defense short-term bonds ("obligations")
not converted into 5 per cent rente; amount
issued to July 31,1916
(This amount is offset by the amortization of
the old six-year bonds to an amount of 283
millions.)
Treasury bills (bons du tresor) disposed of in
England representing on July 31,1916, a total of.
The issue of national defense treasury bills. proved
a continued success. Deducting all reimbursements and conversions the net yield from these
issues totaled
Increase in the amount of funds- deposited by the
public with the national treasury
'.
Advances of the Bank of France up to July 31,1916.
Advances of the Bank of Algeria up to July 31,
1916

11, 925
1,476
1,037

2,315

13,166
142
8, 300
45
38,406

Less amount of 6-year bonds amortized
283
Decrease in amount of ordinary Treasury
bills "outstanding
395

JANUARY 1,

1917.

the disposal of the Bank of France for the needs
of the foreign exchange market in the shape of
treasury bills (in pounds sterling) renewable
during the war and the years immediately following the conclusion of peace, the bank in
turn lending to the British treasury or to the
Bank of England gold, which is to be repaid at
the termination of war, whenever it should be
needed for the resumption of specie payments.
The statement adds, "A new convention is
to be signed regarding this matter between the
French and British Governments, which will
assist us to meet most of our commitments toward those countries which are our principal
purveyors, including Great Britain itself, and
to maintain the stability of our exchanges/7
Appropriations authorized or applied for since Aug. 1,
1914.
[Source: Bulletin cle Statistique, Sept., 1916. In thousands of francs.]

678
1

37, 728

I

Calendar year.
1915

19M

1916

Total.

J_

Of this total only 22 per cent came from the Military expenditures proper.! 5,867,251'15,704,418 23,600,675 45,232,444
Public debt
banks of issue in the shape of fiduciary circu- Expenditures of social soli- 60,332| 1,900,024 3,005,207 4,965,562
darity
lation and 78 per cent, or almost four-fifths, Purchase of food for the sus- 494,465! 2,673,251 3,290,242 6,457,959
tenance of the civil populafrom voluntary contributions by the public.
186,800
20,000 166,800
tion
Other expenditures
147,386| 2,261,124 2,394,771 4,803,181
Speaking of the general financial situation,
Total.
6,589,434122,705,617J32,350,895J61,645,946
M. Kibot discussed the question of payments
i
I
I
which the national treasury has to make Movement of the French public debt from July 31, 1914, to
Aug. 31, 1916.
,abroad as the result of foreign purchases for
national defense purposes and in providing food [Source: Bulletin de Statistique, Sept., 1916. In thousands of francs.]
for the civil population.
Increase Decrease
since July since July
The monthly average of these payments from
31,1914. 31,1914.
about 250 million francs in 1915 had gone up
to about 600 millions about the middle of 1916. A. Consolidated or long-term debt:
5 per cent loan, 1915 (760,244,273 francs of
This increase, the minister adds, would have
15,204,885
rente)
3 per cent rente delivered in part payment
been even greater had not the Government de2,166,666
a/c loan (65,000,000 francs of rente)
3£ per cent amortizable " r e n t e " delivered as
cided to draw more largely on the resources of
part paj'ment a/c subscription for—
1. National-defense short-term bonds
the country and order only those things
(28,641,368 francs of rente) . ;
845,176
2. 5 per cent loan (939,800 francs of
abroad which could not be furnished by narente)
tional labor.
Total
j 15,204,885 3,011,842
To the amounts of foreign purchases should
Debt repayable within
be added the growing sums represented by in- B.mination of hostilities: short term after terNational-defense short-term bonds (obliterest on loans and on advances received, also the
gations)
1,159,724
6-year bonds:
amounts which the French treasury places at
159,750
Law of Feb. 17,1898
!
1

Exclusive of the decrease b y 295 millions in the amount of cash on
hand in the treasury between July 31,1914 and 1916.




Law of Sept. 26,1908
Law of July 30,1913
Law of Apr. 4,1914
Franco-British loan in the United States

1
j
|
j 1,295*000

35,000
8,760
79,770

.7 iXUAUY 1, 1917.

13

EEDEEAL RESERVE BULLETIN.

Movement of the French public debt from July 31, 1914, to ?. Issues of national defense treasury bills (bons de la defense nationale, exclusive of bills in 5 and 20 franc deAug. SI, 1916—Continued.
nominations) .
Increase Decrease
since July since July
31,1914. 31,1914.
B. Debt repayable within short term after ter- I
mination of hostilities—Continued.
!
Treasury bills (bons) issued to the British •
Treasury
I 1,508,156
Treasury bills handed to the Bank of England by the Bank of France
1,210,560
Advances of the Bank of France
8,400,000
Advances of the Bank at Algeria
100,000
Advances of the syndicate of principal banks
in the United. States
518,000
Total
:
Net increase
C. Floating debt:
Ordinary treasury bills (bons ordinaires)
National-defense*treasury bills
Treasury bills placed abroad

14,191,440 j 283,280
13,908,160 I

[In millions of francs.]
1914
Gross issues
Less amounts retired through reimbursement and renewal or applied
toward payment en other loans
Outstanding at the end of vear
and on Aug. 31,1916
".

1915

1916

1,696

16,388

17,977

36,061

78 11,044

10,764

21,886

5,344

7,213

14,175

1,618

Total.

LOAN OPERATIONS SINCE AUGUST 31, 1916.

A second*5 per cent "rente" loan was issued
in October, 1916, which, according to official
announcement of the minister of finance on
14,485,818 j 394,520 November 9, amounted to 11,360 million
Total
14,091,298 j
Net increase
francs. In payment the Government received
Recapitulation showing net increases of the several classes of the French public debt:
950 millions of national defense short-term
A. Consolidated or long-term debt
12,193,043
B. Debt repayable within short term after
bonds, about 3,500 millions of national defense
termination"of hostilities
13,908,160
14,091,298
C. Floating debt
treasury bills, about 7.4 millions of 3 | per cent
Total net increase Julv 31,1914, to A nti. 3.1,
rente, and about 5,500 millions of cash. Of the
1916
..........
10,192,501
latter amount, about 160 millions was gold,
1. Issues of national defense short-term bonds (obligations the total amount of gold turned in by the
public to the Bank of France and the treasury
de la defense nationale).
During the year 1915 a total of 3,823 million francs nomi- since the opening of the war being nearly
nal of national defense short-term bonds was sold by public 1,900 million francs. As a result of the sucsubscription. In payment therefor the Government cessful issue of this loan, the Government was
received:
able to return about 2,200 millions of the
Million francs.
8,500 millions received as advances from the
Cash
2, 525
National defense treasury bills
372 Bank of France. Moreover, during Septem28,585,000 francs of 3J amortizable rente (estiber, 1916, the unfunded part of the namated capital value)
817 tional debt was increased by the following
3,714 amounts: 1
Mmions
i 394,520
14,183,178 i
302,640 |

In addition to the bonds sold to the public, totaling. 3, 823
there was delivered to the Belgian Government for
the purpose of redeeming Belgian and Congo
treasury bills a total of
137

of francs.

Sale of national defense treasury bills
891
Sale of national defense short-term bonds (obligations de'ccnnales)
260

Total
1,151
Increase in amounts of funds deposited with Govern- ,
ment treasuries
16
Following the conclusion of the new convention
Leaving thus a balance outstanding of
633
with the United Kingdom, there were discounted
During 1916 there was issued a total of
527
in England treasury bills totaling
567
paid for in the following manner:
A loan concluded with a syndicate of American
Cash
453
banks netted about
183
National defense treasury bills
53.3
The Bank of France advanced during the month.. 100
55,000 of 3> per cent amortizable rente.. 1.6
<
And the Bank of Algeria
20
507.9
Total loans realized during September
2,037
Total of national defense short-term bonds
i Economists Frangais, Nov. 18,1910, p. 680.
outstanding on Aug. 31, 1916
1,160
73976—17
3
Total of short-term bonds issued during 1915. 3, 960
Of this total there was returned to the Government
as part payment on the 1915 5 per cent loan
3, 327




14

FEDERAL RESERVE BULLETIN.

Amounts

J u l y 30,
1914.

Bank notes in circulation.
Gold in vault

GROWTH OF THE E M P I R E ^ DEBT.
Nov. 30,
1916.

Increase.

6,683,185 16,119,496
f<*3,764,625
4,141,342 L&l,280,922

a Held in vault.

9,430,311

[Amounts in millions of marks.]

GROWTH OF PUBLIC DEBT, 1914 TO 1917.

According to official data of the Russian
ministry of finance, the Russian public debt
has increased since January 1, 1914, as follows
(in thousands of rubles):
January 1—
1914

1915
1916
1917

Between September, 1914, and October,
1916, the Imperial Government issued five
loans totaling over 47 billion marks, as may be
seen from the following tabular statement taken
largely from the 1916 Statesman's Yearbook:

b Held abroad.

RUSSIA.

'

Increase
during

Total:
9,888,310

year.

10,473,572
18,876,731
25,220,937

,

1917.

GERMANY.

of Bank of France notes in circulation, also gold
held by the Bank of France.
[In thousands of francs.]

T

JANUARY 1,

585,862
8,403,159
6,344,206

First loan issued September, 1914,2
(1) 5 per cent treasury bills falling due Oct. 1,1920
1,000
(2) 5 per cent imperial loan, not redeemable before Oct. 1,1924. 3,460
Second loan issued March, 1915, at 98£:
(1) 5 per cent treasury bills (no amount fixed), falling duel
Oct. 1,1922
1 9,061
(2) 5 per cent imperial loan, not redeemable before Oct. 1,1924. J
Third loan issued September, 1915, at 99:
5 per cent imperial loan, not redeemable before Oct. 1,1924. 12,101
Fourth loan, issued March, 1916:
(1) 4£ per cent treasury bills (no amount fixed), falling due"
on July 1,1932, issued at 95.
•10,712
(2) 5 per cent imperial bonds, falling due on Oct. 1, 1924,
issued at 98}
Fifth loan issued during Sept.-Oct., 1916:
(1) 4£ per cent treasury bills (no amount fixed) falling due'
between 1923 and 1932, issued at 95.
10,699
(2) 5 per cent Imperial bonds, not redeemable prior to October, 1924, issued at 98.

The following classification of the loans outstanding on January 1, 1917, is shown by the
Below is given an analysis of the subscriptions
official Viestnik Finansov, No. 38,1916, p. 457: to each of the first four German war loans:

1. Loans negotiated in terms of rubles equal to
one-tenth of an imperial, or exclusively in
terms of foreign currency:
(a) Of the "rente" type (without date
of repayment)
(b) Terminable
2. Loans negotiated in terms of rubles equal
to one-fifteenth of an imperial:
(a) Of the "rente" type (without date
of repayment)
(6) Terminable.
3. Short term treasury bonds:
Sold in Russia
Sold abroad
Total

jn
thousands
rubles.
50,958
2, 743,973

3,265,472
8,480,569
6,500,000
4,179,964
25,220,936

Annual interest charges proposed for 1917 are 669,410,000
rubles, compared with 652,779,000 authorized for 1916.

[Source: 1915 Reichsbank report and Statesman's Yearbook, 1916. I n .
millions of marks.]

July 16/29, Nov. 16/29,
1914.
1916.

Bank notes hi circulation
Gold on hand
Foreign gold credits




841,174
825,884
72,471

* Decrease.

4,241,141
755.422
1,107,104

Increase.
3,399,967
i 70,467
1,034,633

Number of Amount. Number of Amount.
subscribers.

subscribers.
U p to 200 marks
300 to 500 marks
600 to 1,000 marks
|
1,100 t o 2,000 marks
2,100 to 5,000 marks
5,100 to 10,000 marks
10,100 to 20,000 m a r k s . . .
20,100 to 50,000 m a r k s . . .
50,100 to 100,000 m a r k s . .
100,100 to 500,000 m a r k s .
500,100 t o 1,000,000 marks
Over 1,000,000 marks

Total

452,113
581,470660,776
418,864
364,459
130,903
46,105
26,407
7,742
4,361
538
325

71
254
604
733
1,354
1,057
745
926
648
1,066
440
1,162

4,460 j 2,691,060

9,060

36
111
/
587 \
579
450
307
410
315
509
287
869

231,112
241,804
453,143
157,591
56,438
19,313
11,584
3,629
2.050
'361
210
1,177,235

Third loan.
Subscriptions.

Amounts of Russian State bank notes in circulation, also gold
Up to 200 marks
on hand and foreign gold credits of the Bank.
300 t o 500 marks
[In thousands of dollars.]

Second loan.

First loan.
Subscriptions.

600 to 1,000 marks
1,100 to 2,000 marks
2,100 to 5.000 marks
5,100 to 10,000 m a r k s . . . .
10,100 to 20,000 marks
20,100to 50,000 m a r k s . . .
50,100 to 100,000 m a r k s . . .
100,100 to 500,000 m a r k s . .
500,100 to 1,000,000 marks.
Over 1,000,000 marks

Total

Fourth loan.

Number of
Number of
subscribers. Amount. subscribers. Amount.
984,358
858.259
918,595
530,176
422,626
147,593
53,445
32,840
10,090
7,074
832
530

130
369
844
928
1,563
1,202
858
1,167
850
1,766
695
1,7.29

2,406,118
967,929
885,941
468,724
347, 725
113,927
42,158
30,361
9,100
6,308
780
574

201
407
794
792
1,247
907
666
980
734
1,531
641
1,812

3,966,418

12,101

5,279,645

10,712

15

FEDERAL RESERVE BULLETIN.

JANUARY 1,1917.

The total number of subscribers to the fifth
war loan is given as 3,810,696, while the
number of subscriptions of 2,000 marks and
below was 3,383,188 or almost 90 per cent of
the total number.
The following table shows the various classes
of institutions through which subscriptions
were received:

Reichsbank at the beginning of the war and
on November 30. The importance of th#
other note issuing banks, as may be seen from
the comparative statement, continues purely
local and of little national significance.1;
Comparative statement showing condition of all German
banks of issue, Nov. 23 and 30,1916.
[Source: Deutscher Reichsanzeiger. In thousands of marks of 23.8 cents
nominal.]
I

First
loan.

Total-

479
2,895
883
203

565
5,663
1,978
384
358
112

4,460

Reichsbank
Other banks and bankers...
Savings banks
Life insurance companies...
Cooperative credit societies.
Post offices

Second
loan.

9,060

Third
loan.

Bavarian Bank of
ReichsNote
Saxony,
bank, Nov. Bank,
30,1916.
Nov. 23, Nov. 23,
1916.
1916.

Fourth
loan.

7,391 I
2,877 !
417 !
680 I
167 '

461
6,165
2,727
349
839
171

12,101 j 10,712

FIDUCIARY CIRCULATION.

Before the war the Imperial Treasury had
issued a total of over 200 millions of its own
notes, the so-called Reichskassenscheine. The
authorized amount of these legal-tender notes
has been raised during the war to 360 million
marks. In addition there are also in circulation certificates of the war loan banks, the

Gold
Other metallic reserve
Currency notes l
•.
Notes of other banks
Checks and bills, including treasury
bills
Collateral loans
Securities
Other assets

Total

29,375
852
5,385

22,137
5,300
16,573

8,075,687
12.408
75', 482
674,938

45,157
2,694
1,933
4,191

26,220
37,304
10,283
10,849

11,692,130

Total
Capital
Surplus
Notes in circulation
Demand deposits
Time deposits
Other liabilities

2,518,488
16,457
315,832
2,838

89,587

128,666

180,000
85,471
,
7,333,660
} 3,661,917
431,082
11,692,130

7,500
3,750
67,678
6,273
4,386

30,000
7,500
43,854
26,100
17,690
3,522

89,587

128,666

so-called DarlehnslcassenscJieinej of which a

maximum issue of 3,000 million marks has
been authorized. The total issued by December 31, 1914, according to the Statistisches
Jahrbuch fur das Deutsche Reich (1915 edition,
p. 295) was 1,317 million marks, of which 445.8
millions were in actual circulation, and the
remainder in the vaults of the Reichsbank.
At the end of 1915 the total actual circulation
of loan bank certificates in 20, 5, 2, and 1 mark
denominations is shown in the 1915 Reichsbank report as 972.2 millions, while the
amount of certificates held by the Reichsbank on that date was 1,254.8 million marks.
The bulk of circulation is composed of the
notes of the Reichsbank and of the other
banks of issue. Below are shown the principal
asset and liability items of these banks, including their metallic reserve and notes in circulation at the latest available dates (Nov. 23 and
30, 1916), also a comparison of the gold in
vault and the note circulation of the German




Gold
Other metallic reserve
Currency notes 1
Notes of other banks
"
Checks and bills, including treasury bills.
Collateral loans
Securities
Other assets

|\
f

R A(.7
b 4b

9,850
499
6,053
22,785
15,404
4,529
12,231

55,076 j

71,351

9,000
2,250
21,344 !
20,712 !

9,000
1,773
24,321
34,145

1,770

2,009

55,076

Total..
Capital
Surplus
Notes in circulation.
Demand deposits
Time deposits
Other liabilities

' '
1.401
3,533
15,469
5,593
1,832
20,7*1

71.351

103

Total..

1 Reichs-und Darlehnskassenscheine.

Amount of Reichsbank notes in circulation; also gold held by
the Reichsbank prior to the outbreak of the war and on
Nov. 30, 1916.
[Source: Wochen-Ubersichte der Reichsbank. In thousands of dollars.]
July 31,
1914.
Notes in circulation.
Gold on hand

092 442
298,261

Nov. 30,
1916.

Increase.

1,745,411
599,400

1,052,969
301,139

16

FEDERAL RESERVE BULLETIN".

[Source: Gorman Embassy Commercial Bulletin No. 1. December,
1916.]

Status of the Reichshcmk of December 7, 1916.
ASSETS.
Dollars.
599,704,000
Gold.
Treasury bills and commercial p a p e r . . . . j 1,888,302,000
LIABILITIES.
Notes in circulation
Deposits

1,652,271,000 6,989,542,000
815; 136,000 3,423,574,000

The outstanding notes are covered by gold
to 38.2 per cent of the value, or 2.9 per cent
above the legal limit, which is 33.3 per cent.
Since the preceding week, November 30,
1916. there have been the following changes:
ASSETS.
Dollars.
Gold increase.
Treasury bills and commercial paper,
decrease

Marks.

64.524

271,000

34,524,000

145,003,000

16,245,000
50,726,000

68,230,000
238,252,000

LIABILITIES:
Notes in circulation, increaseDeposits, decrease

nearly $20,000,000. Small increases are reported regularly. For the last week the increase was $64,524; during the last few weeks
the export of gold was considerable.

Marks.
2,518,758,000
7,930,871,000

The last detailed statement available in this
country is dated October 31:

.Grovjth of the gold reserve.

July 30, 1914
Nov. 11, 1915
Dec. 7, 1916

PAPER CIRCULATION.
Dollars-.

Marks.

Gold
596,600,000 2,506,000,000
Silver
3,860.000 ' 16,210,000
Currency notes (Kassenscheine)
2,558; 300
10,745,000
War loan bank certificates
52.071,400
218,700,000
Notes issued by other German banks
i
'599,520
2,518,000
Treasury bills, commercial paper, checks.; 1,875,470,000 7,877,000,000
Loans against collateral
!
3,283,800
13,792,000
Securities
j
18, 714,200
78,600,000
Other assets
|
157,020,000
659,531.000
LIABILITIES.
j
'.

|323,057,142
579, 333, 809
599,704,000

There are no gold mines in Germany and
there have been no imports on a considerable
scale. The gold accumulated in the coffers of
the Reichsbank during the war has been
withdrawn from circulation; its place had. to
be taken by bank notes. During the last
weeks the public has sold substantial quantities
of superfluous ornaments. The supply of gold
from this source will probably be quite considerable, although a certain class of jewelry,
wedding rings, for example, will not be accepted. Before the war there was an estimated annual consumption of gold for industrial purposes of about $20,000,000. During
the last 50 years $416,000,000 worth of gold
have been used in Germany for jewelry. It is
estimated that about $250,000,000 worth has
remained in the country. A part of this reserve is sure to come forward. The consumption of gold for jewelry goes on at present at
the rate of 2\ to 3£ million dollars a year;
four-fifths of the jewelry manufactured is
exported.

ASSETS.

Capital
Reserve
Notes in circulation
Deposits
Other liabilities

JANUARY 1, 11JJ7.

12,860,000
180,000.000 j
2Q, 350,000
85,471'. 000 i
; 1, 728,500,000 7,260,000,000
! ' 823.570,000 3,459,000,000
95] 216) 000 '399,912.000 !

During the war the bank-note circulation
of the German Empire has increased greatly,
just as it has done in other belligerent countries.
REICHSUA.NK NOTES IX CIRCULATION.

July 30, 191.4
Nov. 11. 1915
Dec. 7, 1916

Four State banks enjoy the privilege of
issuing notes besides the Reichsbank. Their
circulation was according to the last available statement of June 30, 1916:

GOLD STOCK'OF THE REICHSBANK.
Bavarian Note Bank.
The stock of gold kept by the Reichsbank , Bank _ Saxony.
_ _ of _ _
has nearly doubled since the beginning of the j Banko ofj a d c n
wucrttemberg
war. During the last year it has increased by | a n k f j




$450, 212, 619
1, 372, 595, 476
1, 652', 271, 000

Dollars.

j,

16,150,000 !
10,120,000 |
5,500,000 j
4,200,000:

Marks.
07,850,000
42,510,000
23,130,000
17,720,000

JANUARY I.

17

FEDERAL RESERVE BULLETIN.

1917.

This circulation has remained almost stationary throughout the war.
Before the war an issue of $57,148,000
(240,000.000 marks) unsecured currency notes
(kassenscheine) was authorized and made
legal tender. The amount has since been
raised to 885,714,000 (360,000,000 marks).
Moreover, the issue of a new circulating medium, the war loan hank certificates, has been
authorized up to the limit of $714,000,000
(3,000,000,000 marks). The maximum so far
reached is §603,000,000.
War. loan bank certificates are issued by
specially organized loan banks. The customer
has to put up statutory securities as collateral,
mostly bonds and shares. Other forms of
property are occasionally admitted. In every
case a broad margin is insisted upon, which
has never been lower than 25 per cent of the
value. The loan is secured not onty by the
collateral, but the borrower has to assume unlimited liability. Behind these obligations of
the debtor stands the guaranty of the Imperial
Government.
The loan.is issued in the form of war loan
bank certificates, which are really currency
notes and legal tender. These certificates are
in small denominations which are eagerly taken
up by the public, as there has been a great
demand for small currency since the beginning
of the war. The rate of interest charged to the
borrower is one-half per cent above the bank
rate. On account of this extra obligation the
loans are mostly short-lived and are in demand
for temporary accommodation. Whenever the
loan is repaid, the amount of war loan bank
certificates outstanding is diminished correspondingly. Whenever there is big demand
for temporary accommodation, for example,
when payments on the imperial loans fall due,
there is a temporary increase in the amount of
certificates issued,
A considerable share of these certificates is
held by the Roichsbank, which can issue notes
against them. When estimating the total
paper circulation these certificates held by the
Reichsbank ought to be deducted to avoid
double accounting.

For a long time the monthly expenditure for
war purposes was about $500,000,000. The
entrance of Roumania into the war raised that
monthly expenditure during the last four
months to about $524,880,000. The new
credit will be sufficient for approximately five
months. In September the fifth loan was
offered to the people: $2,536,000,000 were
subscribed.
Of the $12,380,000,000
(52,000,000,000
marks) voted up to October 27, $10,714,000,000
(45,000,000,000 marks) have been provided
by long-term loans. The rest is financed by
treasury bills which are taken up like commercial paper, especially by banks and big industrial concerns.
Though the last installment on the fifth
war loan does not fall due until February 6,
1917, 83.3 per cent of the total amount subscribed had been paid up by November 17
of the current year. The number of subscribers was somewhat less than for the two previous
loans, yet the fifth loan too can be called a
"people's loan/''
A.nahjSiH of the jive

Up to October 27, 1916, the Imperial Parliament had voted $12,380,000,000 (52,000,000,000 marks). On that day a new credit of
$2,880,000,000 was granted by the Reichstag.




loans.

First
Second
Third
war loan. war loan. war loan.
Subscriptions up to
$500......
92(5,059
From $525 to 82,500... I 214,029
From S2,500 to S25,- !
000
1 34,520
From
825,000 to |
8250,000
1 2,411
Over 8250,000
!
210
Total

Fourth
war loan.

Fifth
war loan.

12,113,223 3,291,388 4,728,712 3,383,188
339,062
570,219
461,652
| 495,302
j
81,019
78,819
! 80,254 j 96,375
!
\
7,900
8,902
7,088
!
4,899 I
574
530
725
!
325 i

1,177,235 ,2,094,003 3,906,418 5,279,045 3,810,096
|
:
i
I

AMOUNT S U B S C R I B E D B Y O I F F E R E N 1
INVESTORS.

GROUTS OF

[In million dollars.]
Invested b y people
subscribing up to
$500
:...
From S525 to 82,500...
From S2,500to §25,000
From
825,000
to
$250.000
Over 8250,000
Total.

GERMAN FINANCE.

war

NUMBER OF SUBSCRIBERS.

174.7
245.0
245. 7

395.7 !
552.1 |

540. 7
058.3
084.5

522.3
512.8
500. G

361.0
399. 7
581. 6

189.5
206.9 |

358.5 j
270.6 I

585.9 !
411.6

519.1
431.4

609,5
582.8

2,552.2

2,535.2

574.0 j

1,061.8 j 2,150.9 j 2,881.0

Intending subscribers for war loans can
borrow money at the loan banks at somewhat cheaper rates than the ordinary borrower. They have to pay one-fourth per cent
above bank rate instead of one-half per cent
above bank rate. This privilege makes it

18

FEDERAL RESERVE BULLETIN.

possible for investors to subscribe to war loans
at a time when they are somewhat short of
liquid money. They can use the loan banks,
but for temporary purposes only, because they
have to pay 5.25 per cent to the loan bank,
while the war loans net them only 5.1 per cent;
no investor would care to shoulder the loss entailed by the permanent use of the loan banks.
On November 30 the amount of loans
granted by the loan banks for the purpose of
enabling borrowers to subscribe to the fifth
war loan was $72,600,000, or 3.16 per cent of
the total amount paid in.
AUSTRIA.
Public debt statement as at Dec. 31, 1915.
[Source: Nachwoisung dcr Staatsschuldcn-Kontroll-Kommission des
Reichsratcs iiber den Stand der Staatsschulden
31 Dezember
1915.-7-Vienna, 1916.]
[In thousands of kronen. Krone = 20.3 cents nominal.]
Capital
amount.
A. War debt:
1. Due to the Austro-llungarian Bank—
(a) Collateral loan, secured by 2^-year
5 per cent treasury bills of 600
million kronen nominal
(b) Collateral loan, secured by 5-year
5 per cent treasury bills of
1,696,000,000 kronen nominal
(c) 13 notes (Solawechsel), at 63,600,000 kronen
(d) 7 notes (Solawechsel), at 63,600,000
kronen
(e) 20notes (Solawechsel), at 25,440,000
kronen
(f) Loan against debt receipt
Total

..

2. Austrian Syndicate—
Advances* in current account
Treasury bills
Total
3. German Syndicate—
(a) Treasury bills totaling 200 million
marks (£ per cent commission^
1,764,000 kronen; 1 per mille German bill stamp tax= 235,200
kronen. Conversion into kronen made on the basis of legal
equivalent)
(b) Treasury bills totaling 180 million
marks (§ per cent commission^
1,323,000 kronen; 1 per mille German bill stamp tax= 211,680 kronen; conversion into kronen
made on the basis of legal
equivalent)
(c) Treasury bills totaling 125 million
marks ( | per cent commission=
918,750 kronen; 1 per mille German bill stamp tax= 147,000
kronen. Conversion into kronen made on the basis of legal
equivalent)
Total




Yearly
interest
charge.

JANUARY 1, 1917.

Public debt statement as at Dec. 31, 1915—Continued.
[In thousands of kronen.]
Capital
amount.
The Statesman's Yearbook for 1916 gives the
following details regarding dates of issue,
prices, maturities, etc., of the four Austrian
war loans, made to May, 1916:
4. War loans—
(a) First loan, issued November, 1914,
at 97-£ (5-.V per cent treasury bills,
falling due at par Apr. 1, 1920).. -2,200,747
(b) Second loan, issued May, 1915, at
95} (5£ per cent stock, not redeemable till 1925)
2,688,322
(c) Third loan, issued October, 1915,
at 93J (5J per cent treasury bills,
not redeemable before Oct. 1.
1930)
4,203,062
(d) Fourth loan, issued May, 1916—
5-i- per cent treasury bills repayable at par in June, 1923,
issued at 93
2,127,000
5£ per cent bonds to run for 40
years, issued at 95J2,314,000
(e) A fifth war loan was to be issued
in November, 1916.

Yearly
interest
charge.

121,041
147,858

231,168

RECAPITULATION.

25,500

1,272,000

12,720

826,800

8,268

445,200

4,452

508,800
391,156

59,940

300,000
200,000

13,500
9,000

500,000

22,500

235,200

59,940
22,500
32,046
500,067
614,553

Due to the Austro-llungarian Bank
Austrian syndicate
German syndicate
3 war loans

5,088
3,912

3,953,956

3,953,956
500,000
593,880
9,09^,131

Total outstanding war debt Dec. 31,1915. 14,139,967
510,000

1.
2.
3.
4.

14,112

13. Public debt of Austria other than war debt
outstanding Dec. 31,1915
Total public debt of Austria outstanding
Dec. 31,1915
Preliminary unofficial iigures show the proceeds of the fourth war loan, issued in May,
1916, at 5J per cent, as

12,908,840

510,948

27,048,807

1,125,501

4,441,000

Below is given the distribution of the coupon bonds of the first two war loans by denominations, also the number and amounts of
registered bonds issued under these two loans,
as shown in the above-named official document : '
First war loan.

Second war loan.

Number.

211,680

10,584

147,000

7,350

593,880

32,046

Coupon (bearer)
bonds:
100 kronen
200 kronen
1,000 kronen
2,000 kronen
10,000 kronen
100,000 kronen....
Registered bonds
Total

Kronen.

Number.

245,386
289,044
209,906
182,855
74,230
2,938
3,370

24,358,600
57,808,800
209,906,000
365, 710,000
742,300,000
293,800,000
506,683,500

200,371
300,180
239,408
218,583
87,738
3,345
2,929

Kronen.

20,037,100
60,036,000
239,408,000
437,166,000
877,380,000
334,500,000
719,794,700

1,007,729 2,200,746,900 1,052,559 ! 2,688,321,800

FEDERAL RESERVE BULLETIN.

JANUARY 1,1917.

19

period were those located in Dallas, New Orleans, Buffalo, Kansas City, Philadelphia,
San Francisco, Cleveland, Pittsburgh, and
[Source: Statesman's Yearbook, 1916 ed. Proceeds in millions of
kronen.]
Boston.
First loan, issued in November, 1914, at 97k 6 per cent stock not
Among the 100 largest banks there were
redeemable till Nov. 1,1920
."
1,170
Second loan, issued in May, 1915, 6 per cent stock not redeemaonly 5 which did not show an increase. Three
ble before 1921, issued at 98. and 5£ per cent stock not redeemable before 1925, issued at 91$
1,120
of these banks showing reductions were loThird loan, issued in October, 1915, at 98, 6 per cent rente, not
redeemable before May 1,1921
1,980
cated in New York and 2 in California. The
Fourth loan, issued in May, 1916,6 per cent rente, not redeemable
before Nov. 1,1921, issued at 97£ and 5$ per cent treasury bills,
not redeemable before June 1,1926, issued at 91T%, about
1,800 largest reduction shown by any one of these
Total
6,070 5 banks was less than two and a quarter
million dollars.
The largest percentage of increase was
One Hundred Largest National Banks.
shown by a bank in Texas, which increased
Interesting figures showing the distribu- over 33 per cent, or over $6,000,000.
tion between States of the 100 largest national banks in the. United States were made
Commercial Failures During November.
public by the Comptroller of the Currency on
December 22 and are given below.
In common with other records, statistics of
failures continue to make a gratifying exhibit,
Formerly the 100 largest national banks in
the United States were congested principally reflecting the general prosperity of the country
in a comparatively few financial centers. and the increased promptness iri the settlement
To-day the big banks are distributed through of financial obligations. Strictly commercial
22 States and in 33 cities, embracing every defaults, as distinguished from banking suspensions and personal embarrassments, numsection of the country.
The 100 national banks with the largest bered 1,251 during November, and the liabiliresources as shown by the call of November ties reported to R. G. Dun & Co. were $14,17, 1916, all have resources in excess of 104,621. These figures exceed the 1,240 in$20,000,000, with one exception, the exception solvencies, involving $10,775,654 in the preceding month, but the number is the smallest
being one of the Chicago banks.
for any November since 1912, and it is necesOklahoma, Alabama, Louisiana, Virginia,
Washington, New Jersey, and Oregon each sary to go back to 1910 to find a lighter incontain 1 of the 100 largest banks; Texas, debtedness for the period. For the 11 months
Nebraska, Maryland, Michigan, Indiana, and of the current year, failures show a numerical
Wisconsin each contain 2 of these banks; reduction of 23 per cent and a contraction of
Colorado has 3; Ohio, Minnesota, and Massa- over 36 per cent in amount as compared with
chusetts each have 5; California and Illinois 1915, while the record in both respects reveals
have 7 each; Missouri has 8; Pennsylvania has a substantial decrease from the mortality of
two years ago. Betterment in comparison
16; and New York State has 25.
Between September 12 and November 17, with a time of abnormal conditions obviously
1916, the resources of the 100 largest banks is to be expected, but the present returns appear particularly favorable when it is conincreased $550,000,000, or nearly 9 per cent.
Outside of the central reserve cities the sidered that the possibilities of financial
large banks which showed increases of as reverses are enhanced through the increased
much as $5,000,000 each in deposits in this number of firms in business.
HUNGARY.

Loans issued during the period 1914 to 1916.




20

FEDERAL BESEBYE BULLETIN.

JANUARY 1, 1917.

DISTRICT NO. 10.
Detailed figures by Federal Reserve districts
follow:
Trustee, executor, administrator, and registrar of stocks
Number of
tailurcs.

District.
No. 1
No. 2 .
No. 3 . . .
No. 4
No. 5...
No. 6 . . . . . .
No. 7.
No. 8
No. 9
No. 10...
No. 11
No. 12

Liabilities.

145
225
81
79
79
119
150
58
43
46
45
181
1,251
1,565
1,815
1,377
1,175

Total, 1916
1915
1914
1913
1912..

$1,772,161
5,112,920
828,863
559,256
687,100
1,072,404
1,989,510
330,795
324,232
325,794
345,757
755,829
14,104,621
15,694,434
25,489,498
24,199,485
15,646,105

and bonds:
Tootle-Lemon National Bank, St. Joseph, Mo.
Trustee, executor, and administrator:
First National Bank, Butte, Nebr.
First National Bank, Muskogee, Okla.
DISTRICT NO. 11.

Trustee, executor, and administrator:
American National Bank, Austin, Tex.

New National Bank Charters.

The Comptroller of the Currency reports the
following increases and reductions in the number of national banks and the capital of naFiduciary Powers.
tional banks during the period from November
The applications of the following banks for 25 to December 22, 1916, inclusive:
Banks.
permission to act under section 11 (k) of the
5
Federal Reserve Act have been approved since New charters issued to
With capital of
$330,000
the*issue of the December Bulletin:
Increase of capital approved for
2
DISTRICT NO. 1.

Trustee, executor, administrator, and registrar of stocks
and bonds:
Safety Fund National Bank, Fitchbuig, Mass.
DISTRICT No.

3.

Trustee, executor, administrator, and registrar of stocks
and bonds:
Broad Street National Bank, Trenton, N. J.
DISTRICT NO. 4.

Trustee, and registrar of stocks and bonds:
First National Bank, Bucyrus, Ohio.
DISTRICT No.

7.

Trustee, executor, administrator, and registrar of stocks
and bonds:
First National Bank, Sheridan, Ind.
Leavitt-Johnson National Bank, Waterloo, Iowa.
Trustee, executor, and administrator:
First National Bank, Coon Rapids, Iowa.
National Bank of Mattoon, Mattoon, 111.
DISTRICT No.

9.

Trustee, executor, and administrator:
American National Bank, Spearfish, S. Dak.




With new capital of
Aggregate number of new charters and
banks increasing capital
With aggregate of new capital authorized

40,000
7
370,000

Number of banks liquidating (other than
those consolidating with other national
banks)
10
Capital of same banks
1, 910, 000
Number of banks reducing capital
1
Reduction of capital
100,000
Total number of banks going into liquidation or reducing capital (other than those
consolidating with other national banks). 11
Aggregate capital reduction
2,010,000
The foregoing statement shows the aggregate of
increased capital for the period of the banks
embraced in statement was
370,000
Against this there was a reduction of capital
owing to liquidations (other than for consolidation with other national banks) and reductions of capital of
2,010,000
Net decrease
1, 640, 000
In addition to the changes noted above, one bank, with
capital of $25,000, was placed in the hands of a receiver
during this period.

JAXITARY 1. 19.17.

FEDERAL RESERVE BULLETIN.

Collaboration With the Federal Trade
Commission.
In the regular course of its work the Federal
Trade Commission has discovered a number of
facts concerning business conditions in general, some of which have an important bearing upon the work of the Federal Reserve
Board.
First. It has been found that there is a
widespread custom among the banks of the
country, not only in small places but frequently
in large cities, to grant considerable lines of
credit without requiring statements of any description from the borrower.
Second. In innumerable instances in which
statements of assets and liabilities have been
made, these statements are manifestly inaccurate, particularly in the case of manufacturers
with respect to the present value of their plant
and equipment, and in the case of wholesale
merchants with respect to the actual marketable value of goods on hand and the realizable
value of accounts receivable.
Third. It has developed that, even in the
case of reports made by certified public accountants, the reported values of assets are
frequently misleading, because depreciations
have not been properly allowed for, and no
statement is made in the report from which
the bank using it as a basis of credit can form
any correct idea of the value of the plant as a
going concern or its value as an asset in case
of the failure of the owner.
It is not suggested by the Federal Trade
Commission that the Federal Reserve Board
shall make any drastic changes in its policy
with reference to the requirement of statements from borrowers or that the Federal Reserve Board prescribe any standard form of
statement. It is not proposed that any of the
Federal Reserve Banks shall be interfered with
in their efforts to bring about a uniformity in
the statements of borrowers. Nor is it proposed that the Federal Reserve Board shall
assume control over the activities of public ac73976—17




4

21

countants or become responsible for the manner in which they may perform their duties.
The Federal Reserve Board, therefore,
has under consideration some consistent basis
of cooperation with the Federal Trade Commission in an effort to standardize the work
of public accountants, by the recommendation
of certain forms of statements and certain
methods of examination, as hereinafter explained in detail.
The Federal Trade Commission has received
cordial responses from business men in all
parts of the county, and is greatly encouraged in the prosecution of its labors by the
feeling that bankers, manufacturers, and merchants will be glad to cooperate with them in
their efforts to improve conditions affecting
credits in all parts of the country. It believes,
however, that a campaign of education is absolutely necessary, and that much time must
elapse and much work be done before any
widespread improvement can be expected.
There is unquestionably large room for improvement, conditions having been discovered
by the Federal Trade Commission with reference to credit information, particularly
along certain manufacturing lines, which it
regards as positively startling.
It is thoroughly realized that whatever plan
is attempted must take into consideration the
conditions under which public accountants
have been working in the past and are now
working. The profession of the public accountant in this country is comparatively
young, and has, therefore, not reached that
standard of professional ethics or degree of
refinement which it has attained in other
countries—England, for example. Competition is keen, and public accountants, even with
the highest appreciation of the responsibilities
committed to them, have been faced with the
alternative of meeting conditions as they exist,
or letting some one else do the work.
To be more explicit, while many audits and
examinations are now being made solely for
the benefit of the client whose business is being

22

FEDERAL RESERVE BULLETIN.

investigated, by far the larger number are
made at the direct request or at the instigation
of and for the benefit of banks, and others who
have been asked or expected to make loans on
the basis of the results of the examinations.
The accountant is employed, paid, and instructed by the person whose affairs are being
examined. This does not mean that the average public accountant can be bought or induced by any consideration to certify to a
statement which he knows to be untrue or
which he has reason to suspect. On the contrary, experience with the profession satisfies
one that the average accountant is entirely
honest and usually competent.
It is a fact, however, that under the circumstances above described, because of competition
and the employer's desire to reduce the expense
of examinations to the lowest possible point,
the custom has arisen of confining audits and
examinations, with rare exceptions, to a single
year's operations; and while the cautious accountant will protect himself by a statement
in his report showing the period covered by
his examination and give figures with reference to stocks of merchandise on hand and
accounts and bills receivable, with qualifications which will indicate that he assumes no
responsibility for estimates and values given,
yet the banker, not always an expert accountant, frequently overlooks the qualifications,
and is misled by the statement.
The public accountant does not as a rule
make his statement in the form thus indicated
of his own choice. If he is an experienced and
competent accountant, he will gladly go to the
bottom in every case, report facts as far as
they can be ascertained, and state actual conditions in unqualified and unmistakable terms
if he is at liberty to do so, which, as has been
intimated, is seldom the case.
The remedy suggested by the Federal Trade
Commission is briefly as follows:
First. There shall be prescribed several different standard forms of statements (one or
more for each particular line of business),
these forms to embody principles and be sub-




JANUARY 1,

1917.

ject to variation in individual cases as special
circumstances may require. They must, of
course, be designed to show (in a manner
as uniform as possible) the real condition of
the business, or as much as can be shown about
the business, with clear and unmistakable indications of those facts which can not be ascertained.
Second. Certain standard methods of procedure on the part of the auditor or examiner
are to be prescribed, with a view of making
examinations as complete as possible and as
thorough as may be necessary.
Third. It is proposed that a registry of
public accountants be established, and rules
made governing the admission of accountants
to registry, and the withdrawal of permission
to use the registry number in any case in which
the accountant to whom that number has been
assigned is guilty of negligence, fraud, or violation of the regulations.
It is not intended that an accountant receiving permission to use the registry number
shall be required to perform all of his work in
accordance with established regulations, or to
use the number in connection with every report made by him of an audit or examination,
but it is intended that whenever he does affix
his registry number it will be only with a
statement appended that the examination or
audit in that particular case was made in
strict accordance with the regulations.
Under these circumstances an accountant
would be entirely at liberty to make an examination in whatever way he may consider
necessary and cover whatever ground his employer may wish him to cover, or give in connection with the work a certificate containing
any qualifications he may see fit to embody, but
he can not affix his registry number unless the
examination or audit has complied in every
respect with requirements provided for in the
regulations.
The Federal Trade Commission is now engaged in compiling a set of regulations covering the registration of accountants and the
conduct of audits and examinations. These it

M*t-*t>i I.

IU17.

FEDERAL RESERVE BULLETIN.

23

ptitpoM's to discuss with the National Society
The Federal Reserve Board, for its. part, is
* f Public, Accountants and later to submit to appreciative of the work done by the Federal
*
ila Ki'drrnl Reserve Board for its considera- Trade Commission, and would be glad to con«»h. It will suggest to the Federal Reserve operate in securing the desired results.
h* » r»11 h a t the registry of public accountants be
n
* flrrt^tl by the Federal Reserve Board rather
ilifin by the Federal Trade Commission, on
Assessment for Expenses of Board.
iUv Uu'ory that this would be more natural and
}t»n)»or in view of the Federal Reserve Board's
Acting under the provisions of the Federal
MM it ion in supervising the character of com- Reserve Act, the Federal Reserve Board on
|
trit'irial paper rediscounted by Federal Reserve December 5 voted an assessment of one-tenth
Ilitiiktt for their member banks.
of 1 per cent upon the capitalization of Federal
l-iider this plan it would not be necessary Reserve Banks to cover estimated expenses of
fur I he Federal Reserve Board to alter its the Board from January 1 to June 30, 1917.
prwent policy with reference to statements. The assessment is based upon the capitalizaJi would not be necessary for the Board to in- tion of Federal Reserve Banks as of December
«IHI upon audited statements to any greater 1, 1916, of $111,474,000. The rate of assessextent than it now does, nor would it be neces- ment will yield $111,474 and is slightly higher
mwy for the Board to issue any formal order than that made for the last half of 1916, which
giving preference to statements made in ac- was seventy-five one-thousands of 1 per cent.
cordance with the regulations over those other- The assessment at the lower rate for the latter
\s we made. The more important results would half of 1916 was made possible by a consider«M)ine from a better appreciation of the whole able balance carried over.
Kuhject and a gradual education of bankers as
The resolution of the Board and the figin the kind of statements which they need.
ures upon which the assessment is based folThe suggestion that the Federal Reserve low:
Hoard should undertake the registration of
Whereas, under section 10 of the Act apaccountants is obviously one which will re- proved December 23, 1913, and known as the
quire most careful study and consideration, Federal Reserve Act, the Federal Reserve.
and it is quite possible that some better way Board is empowered to levy semiannual^ upon
of handling the matter may. be discovered. the Federal Reserve Banks in proportion to
their capital stock and surplus
<>ne suggestion has been made that, inasmuch sufficient to pay; its estimated an assessment
expenses, inas the main object of the plan is the protection cluding the salaries of its members, assistants,
of national and State banks, the best method attorneys, experts, and employees for the half
<f handling it would be through the bankers' year succeeding the levying of such assess»
associations of the different States. This will ment, together with any deficit carried forward from the preceding half year; and
certainly be considered and thoroughly canWhereas it appears from estimates subvassed. Whatever method is adopted it will mitted and considered that it is necessary that
undoubtedly demand the heartiest cooperation a fund equal to one-tenth of 1 per cent of the
on the part of bankers, merchants, manu- capital stock of the Federal Reserve Banks be
created for the purposes hereinbefore defacturers, and accountants.
scribed, exclusive of the cost of engraving and
The privilege of registration, in order to be printing Federal Reserve notes: Now, thereof value, must be jealously guarded, and the lore,
administration of regulations in respect to
Be it resolved, That pursuant to the aupenalties for failure to observe the rules laid thority vested in it by law, the Federal Reserve
down will have to be most carefully consid- Board hereby levies an assessment upon the
several Federal Reserve Banks of an amount
ered in order to secure proper conditions with- equal to one-tenth of 1 per cent of the total
out injustice to those concerned.
capital stock of such banks, and the fiscal




24

FEDERAL RESERVE BULLETIN.

JANUARY 1,1917

agent of the Board is hereby authorized to Estimated requirements, January to June.
inclusive, 1917
collect from said banks such assessment and Estimated unencumbered balance, Jan. $114,956.34
execute, in the name of this Board, a receipt
1, 1917
10,099. 36
for payment made. Such assessment will be
104, 856.98
collected in two installments of one-half each;
the first installment to be paid on January 1, Total capitalization Federal Reserve
1917, and the second half on March 1, 1917.
Banks, Dec. ], 1916
I l l , 474,000.00
Rate of assessment to produce Sill,474
(one-tenth of 1 per cent)

Estimate for January, 1917, assessment.
Average monthly encumbrance for period
July 1, 1916, to Dec. 31, 1916
Estimated monthly reauixementB, January to June, inclusive, 1917
'.
Estimated monthly increase

. 001

SHERMAN ALLEN, Fiscal Agent. '

$18,008.31
19,159.39
], 151.08

Approved: Committee on organization, expenditures,
and staff.
F. A. DELANO.
C. S. HAMLIN.
A. C. MILLER.
DECEMBER 5, 1916.

Estimate for January assessment, 1917.
Commitments.
d

July 1 to

\ Decker,

Total.

Monthly
average".

1916.

Personal services:
Board and its clerks
Secretary's office
Counsel's office
Division of Audit and Examination
Division of Reports and Statistics
Division of Issue
-.
Messengers
Charwomen

$36,925.02
! 11,048.33
10,333.32
6,691.67
! 4,454.16
; 3,454.34
•, 1,760.00
;
296.00

:

Total
Nonpersonal services:
Transportation and subsistence of persons—
Board and its clerks
Secretary's office
Division of Audit and Examination
Division of Reports and Statistics
< Counsel's office
Messengers (car faro)
Communication service:
Telephone
Telegraph
Postage
Printing, binding, etc
Contract repairs
Electricitv (light and power)
Steam (heat)
. Other (nonpersonal services)
Supplies:
Stationery
Periodicals
Other
Equipment:
Furniture and office equipment
Books
Contingencies
Grand total




74,962.84
:

:
:

i

:

,

;

i
j
600.63 |
25.05 \
2,719.88 i
19.20 |
j
15.00 !
301.58
1,743.72
20.00
5,416.83
40.34
150.00
15.00
173.98 ,
|
-569.94 ;
145.90 I
109.71 ;
j
1.480.75 !
111.15 j
!

$7,375.04 344,300.06
2,595.01
13,643.34
2,066.66
12,399.98
1,338.34
8,030.01
i; 030.00
5,484.16
648.34
4,102.68
365.00 | 2,125.00
60.00 !
356.00

! Estimated
i average
monthly
roquirement, Jan.
1 to June
30,1917.

37,383.34
2,273.89
2,066.66
1,338.33
914.03
683.78
354.17
59.33

$7,375.04
2,595.01
2,066.66
1,438.34
1,030.00
7118.34
365.00
60.00

15,478.39; 90,441.23 | 15,073.53

15,648.39

760.63
25.05
3,019.88
19.20

126.77
4.17
503.33
3.20

100.00
10.00
625.00

15.00

2.50

10.00
3.00

361.58
2,043.72
20.00
8,116.83
40.34
180.00
30.00
183.98

60.26
340.62
3.33
1,352.80
6.72
30.00
5.00
30.66

60.00
333.00
5.00
1,250.00
10.00
30.00
15.00
50.00

i
719.94
145.90 !
134.71 j

119.99
24.32
22.45

125.00
20.00
40.00

1,680.75 '
111.15

280.13
18.53

150.00
25.00
650.00

18,008.31

19,159.39

100.00
300.00

60.00 j
300.00 !
2,700.00 I

30.00 ;
15.00
10.00 ;
150.00 !
!
25.00
200.00

88,681.50 j 19,368.39 • 108,049.89

JANUARY 1,

1917.

25

FEDERAL RESERVE BULLETIN.

Reserve Banks and the Federal Reserve Agents,
acting in conjunction with a representative of
Operations of the gold settlement fund durthe Federal Reserve Board.
ing the period November 24 to December 21,
inclusive, resulted in the settlement of obliga- Amount of clearings and transferSj Federal Reserve Banks,
tions amounting to $839,527,000, with changes
from Nov. U, 1916, to Dec. 21, 1916.
in ownership of gold of 2.37 per cent. The
[In thousands of dollars.]
Federal Reserve Banks of New York, Cleveland, Richmond, St. Louis, and Dallas were
Total
clearings. Balances. Transfers.
debtors during the period, the amount of gold
movement from New York to other banks Settlement of—
15,265
205,304
2,790
December 1,1916
being $15,154,000, approximately two-thirds
185,488
13,283
December 7,1910
11,217
198,938
December 14,1910
9,826
6,870
of which was in the week ending December 1.
222,160
December 21,1910
11,877
6,700
Since that date, the movement has diminished,
811,950 ! 50,251
27,577
Total.
126,368
| 4,478,708 422,451
and for the week ending December 21 there Previously reported
Total since Jan. 1, 1916
j 5,290,718 472,702 I 153,945
was a return flow of $2,526,000.
Total transfers, 1916
|
153,945
An audit of the gold settlement fund and the Total for 1915, including transfers i 1,052,649
!
and transfers, May 20,
Federal Reserve Agents' fund was made on Total clearings 21,1916
1915, to Dec.
, 6,497,312 j.
December 11 by representatives of the Federal
Gold Settlement Fund.

Changes in ownership of gold.
[In thousands of dollars.]

To Nov. 23,1916. j From Nov. 24,1916, to Dec. 21,1916, inclusive.*

Federal Reserve Bank of—

Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.

Balance to
credit Nov.
23,1916, plus
Decrease.! Increase. net deposits
of gold since
that date.

15,954.
14,007.
1,561

18,606
17,426
15,105
17,434
20,181
5,939
32,428
3,149
6,562
18,064.
13,573.
10,092

178.560

I 178,560

21,850
291,420 I

55,437
21.428
33,829
26,307
5,140 I
12,278
12,488
37, 797
40,705
34,441
296,560 ! 296,560 j

Total.
1
2

Balance
Dec. 21,
1916.

32,580
12,607
19,498
22,029
3,007
29,170
3,078

Total changes from
May 20, 1915, to
Pec. 21,1916.2

Decrease. Increase. Decrease. Increase,

526

22,376
"306," 574 "|

15,154

57,935
19,364
31,981
29,239

2,498

2,064
1,848

2,932
3,258
' 71

1,882

426
2,110
*434"

"I
19,926 I

" 8," 53*1'
19,926

308,456 j

Changes in ownership of gold during period Nov. 24,1916, to Dec. 21,1916, equal 2.37 per cent of obligations settled.
Total changes in ownership of gold equal 4.75 per cent of total obligations settled.




12,349
12,062
39', 907
40,271
42,972
308,456

26

FEDERAL RESERVE BULLETIN.

J A N U A R Y T, 1 9 1 7 .

Gold settlement fund—Summary of transactions from Dec. 1, 1916, to Dec. 21, 1916, inclusive.
[In thousands of dollars.)

Federal Reserve Bank
of—

Balance
last statement,
Nov. 23,
1916.

Boston
New Y o r k . . . ,
Philadelphia..
Cleveland
Bichmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco

18,080
7,580
15,537
19,898
23,169
5,767
30,230
4,778
8,988
19,464.5
14,507.5
7,981

Total...

175,980

Federal Reserve Bank
of—

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

•

Balance
last statement,
Dee. 1.
1916.
15,734
7171
1.
71
, 838
15, 870
22, 618
23, 332
8, 863
27
7,736
9,197
17, 931.5
14, 951.5
4, 038

.-

*

175,280

Total.

Federal Reserve
Bank o—
f




Total
debits.

2,646
7,919

300

2,490

3,333

17,601
44,787
27,805
14,053
14,834
7,396
25,391
19,277
6,287
15,003
8,318
4,612

2,790

2,790

15,265

205,364

300

2,000
1,960
400
2,800

500

1,367

..
j.
I.
|.

11,200 j

10,500

Gold.
Withdrawn.

Transfers.

Deposited.

Total
debits.

9,020

9,020
850

170

80

15.250

11,217

13,283

185,488

100
247

7,120

3,023

3,301

1,000

900
200
2,000

14,660
33,914
33,597
13.868
13)695
6,884
21,341
19,748
5,128
12,404
6,571
3,678

347
1,000
850

"3,"660"
3,299

1,500 j .

11,217

Transfers.

14,955
36,868
29,106

17,125
16,463
10,221
24,024
22,235
8,496

15,430
9,162
1,279

2,958
2,209
427
844

205,364 I 15,265

Total.
credits.

Net
credits,

11,359
40,504 6,590
29;937
10,569
14,574
879
7,302
418
24,522 3,181
19,822
74
5,322
194
13,312 j 938
7,580 I 1,009
655 I
185,488

13,283

Changes in ownership of gold.
Increase.

15,734
7,171
15,838
22,870
23,618
8,332
27,863
7,736
9,197
17,931.
14,951.
4,038

2,346
10,409

175,280

15,265

Dec. 7,
1916,
balance
in fund
after
clearing.
12, 780
20, 741
10, 308
20, 321
23, 167
7, 850
31, 044
310

1,367
2,209
427
844
1,143
15,265

Changes in ownership of gold.
Decrease. Increase.
3,229
1,430
4,510
2,449 !
121i
418
3,181
74
194
938
937
5,997

17, i.5
15, 593.5
035
183,410

1,301
3; 072
1,629
2,825

11,739

11,739

Dec. 14, I Changes in owner!
ship of gold.
1916,
balance
in fund
Net
after
credits. clearing. Decrease.! Increase.

Settlement of Dec. 14,1916.
Total
credits.
17,296
38,899
29,074
12,177
16,084
9,407
26,735
21,910
4,877
15,632
6,237
610

5,750

1,301
3,072
1,629
2,825

Settlement of Dec. 7,1916.

Net
Debit. Credit. debits.

15,000

1,020
100 I
500 j
900 I

Dec. 1,
1916,
balance
in fund
Total
Net
after
credits. credits. clearing.

Settlement of Dec. 1,1916.

Net
Debit. Credit. debits.

10,000

1,000 .
100 !.
1,180 i.
760 !
1,000:.

12,780
20,741
10,308
20,321
23,167
7,850
31,044
6,310
9,391
17,869.5
15,593.5
8,035
I 183,410

Transfers.

With- ; Dcposdrawn.
ited.

Gold.
Balance
last
statement, !
D
-°9~7» j With1916.
drawn.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
•.
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total

Gold.

1,510

590
900

; 960

857
6,715
744

8,938 i 9,826

18, 708
22, 954
7, 407
30, 879
4, 248
8, 494
18, 513.5
663.5
973
178,290

1,810
5,841
488
1,513
413
957
6,715
1,862
897
644
950
1,8

11,964

11,964

27

FEDERAL BESEBVE BULLETIN.

JANUARY 1,1917.

Gold settlement fund—Summary of transactions from Dec. 1, 1916, to Dec. 21, 1916, inclusive—Continued.

Federal Reserve
Bank of—

Balance
last
statement,
Dec. 14,
1916.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
....
St. Louis
Minneapolis...
Kansas City
Dallas
San Francisco
Total.

Gold.
Withdrawn.

14,590
14,900
8,960
18,708
22,954
7,407
36,879
4,248
8,494
18,513.5
14 663.5
7,973
178,290

#

Deposited.

Net
Debit. Credit. debits.

2,300

50
100

170

1,000

1,320

2,000

1,400

2,300

1,770

6,700

6,700

100

650

1,500

Total
debits.

300
4,000

280

200*
500

Dec. 21,
1916,
balance
in fund
after
Net
credits. clearing.

Settlement of Dec. 21,1916.

Transfers.

15,903
45,675
33,564
15,233
17,734
9,165
30,143
23,917
5,963
13,923
7,666
3,274

19,619
46,501
39,759
14,059
15,791
7,897
26,872
22,718
4,031
14,124
6,576
4,213

3,716
826
6,195

222,160

222,160

11,877

1,174
1,943
1,268
3,271
1,199
1,932
1,090
11,877

Total
credits.

201
939

Changes in ownership of gold.
Decrease. Increase.

18,606
17,426
15,105
17,434
20,181
5,939
32,428
3,149
6,562
18,064.5
13,573.5
10,092

i
1 174 '
2,943
1,268
5,271
1,099
1,932
1,090
14,777

178,560

4.016
2^526
6,195
....

201
1,839
14,777

Federal Reserve Agents1 fund—Summary of transactions, Nov. 24, 1916, to Dec. 21, 1916, inclusive.
[In thousands of dollars. 1

Federal Reserve agent at—

Philadelphia
Richmond
Atlanta
Chicago
St. Louis
. . .
Minneapolis
Kansas City
Dallas
San Francisco . .
Total




Nov.
23,
1916,
balance.

Week ending Dec. 1,
1916.

85,250

1,200

Week ending Dec. 14,
1916?
With- Deposdrawn. ited.

Balance.

With- Deposdrawn. ited.
1,020
500
900

10,520
15,500
15,870
3,950
""i,*566" 6,810
6,250
14,260
""906
200 11,930
100
1,000 12,700

360

2,000
960
400
snn

9,500
15,000
14,970
3,950
5,310
6,250
13,360
11,830
11,700

7,820

91,870

100

97,790

460

With- Deposdrawn. ited.

8,700
200
14,600
500
14,210
2,950
5,310
4,250
12,900 """"566'
11,430
10,900

Week ending Dec. 7,
1916.

1,000
900
760
1,000

6,020

Balance.

ioo"

1,020
250
900
880

1,900

Balance.
11,180
15,750
16,770
4,830
6,710
6,250
14,260
11,930
14,600

4,950 102,280

Week ending Dec. 21,
1916.
With- Deposdrawn. ited.

1,000
320

200
500

280
1,600

700

Balance.
11,180
15,750
15,970
5,010
6,710
6,250
14,260
11,930
14,320
101,380

28

FEDERAL RESERVE BULLETIN.

JANUARY 1,

1917.

INFORMAL RULINGS OF THE BOARD.
Below arc reproduced letters sent out from
time to time over the signatures of the officers
or members of the Federal Reserve Board
which, contain information believed to be of
general interest to Federal Reserve Banks and
member banks of the system:

Group Insurance.

I acknowledge receipt of your letter of the
20th instant, which has been brought to the
attention of the executive committee of the
Board.
There is no objection to the taking out of
group insurance covering the employees of
your Federal Reserve Bank along the lines
Purchase of Acceptances.
suggested in your letter, which plan we underReceipt is acknowledged of your letter of the stand is already effective in at least two of the
21st instant inclosing statement of condition of Federal Reserve Banks.
a bank in New Orleans, which institution desires
NOVEMBER 23, 1916,
to offer its acceptances to the branch bank at
New Orleans.
The Federal Reserve Board has no objection
to your bank's authorizing the purchase of the Differentia! as to Acceptances.
The Board has been considering for several
acceptances of this institution by the branch
bank at New Orleans, but would like to be days the question whether there should be any
advised, as a matter of information, as to the differential in favor of acceptances of member
character of the acceptances to be offered— banks and has reached the conclusion that
will they be against imports or exports, or will while a very decided differential may be inthey be against domestic transactions, or both ? advisable, there is no objection to a moderate
differential, say one-fourth of 1 per cent, to
NOVEMBER 23, 1916.
apply between member-bank acceptances and
the acceptances of large nonmember institutions well known throughout the country and
Purchase of Bank's Own Acceptances.
whose acceptances necessarily have a broad
The attention of the Board has been called market. There will be no inconsistency, of
to the fact that in some cases member banks, course, in applying a higher differential to the
which are authorized under the amendment to acceptances of smaller and less widely known
the Federal Reserve Act of September 7, 1916, institutions whose offerings would have a
to accept against domestic transactions to the restricted market only. As the Board has
extent of 50 per cent of their capital and sur- already approved a rate of from 2 to 4 per cent
plus, have been extending credits in this way for bankers7 acceptances, your directors of
and have been purchasing their own accept- course have a liberal margin of discretion in
ances, under the impression that by this means the matter.
they could extend credits to a single borrower
DECEMBER 4, 1916.
up to one-half of their capital and surplus
instead of being restricted to 10 per cent as
provided by section 5200, R. S. This question Acceptances.
I wish to acknowledge receipt of your letter
has been carefully considered by counsel, and
the Board has ruled that a member bank's of December 5, 1916. You state that an acown acceptances purchased by it, must be ceptance house which has purchased an accepttreated as loans and as such are subject to the ance based on the importation or exportation
10 per cent limitation. The opinion of counsel of goods desires to reimburse itself by drawwill be published in the December issue of the ing a bill upon a national bank, pledging as
Federal Reserve Bulletin, and in the mean- collateral security for the bill the acceptance
time you are requested to correct any mis- which was based upon the transaction involvapprehensions that your member banks may ing the importation or exportation of goods.
You ask whether a national bank would be
entertain on this subject.
authorized to accept a bill of this character
• NOVEMBER 23, 1916.




u n d e r t h e provisions of section 13 of t h e Federal Reserve Act.
T h a t section authorizes n a t i o n a l b a n k s to
accept drafts or bills growing out of transactions involving the importation or exportation
of goods and, though the Board has ruled
t h a t it is n o t essential t h a t the specific goods
be identified or even in existence a t the time
of t h e acceptance in order to m a k e it legal,
nevertheless t h a t acceptance m u s t grow out
of a specific transaction which itself involves
the importation or exportation of goods.
I n the case presented in your letter the acceptance house has purchased with its own
funds an acceptance based on t h e i m p o r t a t i o n
or exportation of goods. T h a t acceptance
necessarily m u s t h a v e grown out of a transaction involving the importation or exportation
of goods, b u t it is the opinion of t h e Board t h a t
there is no direct or logical relation between
t h a t transaction and the subsequent one in
which the purchaser of t h a t acceptance arranges before its m a t u r i t y to reimburse himself b y drawing a new bill secured b y the first
acceptance. The new bill can n o t properly
be said to grow out of the original export
transaction in the sense contemplated b y the
Act. If t h a t was so, it would be possible to
h a v e two or even more acceptances drawn for
the same a m o u n t and existing at the same
time, purporting to finance the same export
transaction. I t is obvious t h a t the law did
n o t contemplate p y r a m i d i n g acceptance credits
in t h a t m a n n e r .
The Board believes, therefore, t h a t no national b a n k can legally accept a draft drawn
under the circumstances set forth in your
letter, first, because it is n o t an acceptance
growing o u t of a transaction involving t h e
i m p o r t a t i o n or exportation of goods, and second, because it is n o t an acceptance of the
character authorized b y the a m e n d m e n t of
September 7, 1916. I t is n o t drawn b y a b a n k
or b a n k e r located in a foreign country, nor does
i t grow o u t of a transaction involving the
domestic s h i p m e n t or storage of goods.
D E C E M B E R 8,

1916.

Acceptances Against Bullion.
T h e B o a r d h a s considered your letter of
N o v e m b e r 29 w i t h reference to s h i p m e n t of
gold b a r s to Peru, and h a s reached t h e conclusion t h a t gold bars m a y b e properly considered as goods, and t h a t accordingly 60-day
bills w h e n accepted b y b a n k s a n d b a n k e r s
73976—17




29

FEDERAL RESERVE BULLETIN.

JANUARY 1,1917.

5

against such a s h i p m e n t would b e eligible for
purchase b y Federal Reserve B a n k s as based
u p o n or involving t h e e x p o r t a t i o n of goods.
D E C E M B E R 4,

1916.

Bills Drawn Against Coin.

In reference to your letter of December 7,
1916, submitting certain questions relating to
the eligibility of bills of exchange drawn to
finance shipments of gold from this country,
I wish to state that the Federal Reserve Board
is of the opinion that gold coin is " goods'
within the meaning of section 13 of the Federal
Reserve Act, and that, therefore, a bill of
j exchange drawn to finance a shipment of gold
| coin from this country either to Europe or to
Canada, as suggested in your letter, is eligible
for purchase by a Federal Reserve Bank if
otherwise in conformity with the provisions of
law and the regulations of the Federal Reserve
Board.
DECEMBER 12, 1916.

Purchase of Warrants from Member Banks.

I received your letter of the 11th instant
referring to the purchase by your bank of
$25,000 of notes of a member bank.
The fact that paragraph VII of Regulation E,
| series of 1916, authorizes any Federal Reserve
| Bank to purchase warrants which comply with
only Paragraphs I and III of Regulation E,
from any of its members, provided that they
are indorsed by the member bank and do not
exceed 10 per cent of its capital and surplus,
does not of itself prohibit a Federal Reserve
Bank from purchasing warrants from a member
bank in excess of that 10 per cent limit if they
comply with all the other provisions of Regulation E. In other words, Paragraph VII was
intended to extend the powers of Federal
Reserve Banks so as to authorize them to purchase through a member bank warrants which
could not properly be purchased in the open
market under the other paragraphs of Regulation E.
It occurs to me, therefore, that if the warrants in question comply with those other provisions of Regulation E, there is, of course, no
reason why you should not take them, even
though offered by a member bank.
If this issue of $25,000 of notes, together with
any other warrants of that county which you
may hold, should exceed 25 per cent of the total

30

FEDERAL RESERVE BULLETIN".

amount of eligible warrants issued by that municipality, the approval of the Federal Reserve
Board would be necessary, under the provisions
of Paragraph II. In order to avoid any delay,
therefore, the Board has directed me to advise
you that it gives its approval for the purchase
oi these warrants, provided the other provisions of'Regulation E are complied with.
DECEMBER 13,

1916.

Compensation of Member Bank Officers.

Your letter of December 5, asking for a construction of that part of section 22 of the Federal Reserve Act which limits the powers of
directors, officers, and employees of member
banks to accept fees, commissions, etc., has
been received.
I am inclosing herewith a copy of an opinion
filed with the Federal Reserve Board by its
counsel, together with a memorandum attached thereto, which is self-explanatory.
The Federal Reserve Board has consistently
maintained the position that it should not
make rulings oil specific or concrete cases arising under this section of the Federal Reserve
Act, because of the fact that, it being a penal
statute, no ruling by the Board would afford
any protection to a person subsequently indicted for a violation of its provisions.
DECEMBER 7,

1916.

Acceptances and Security Therefor.

I have your letter of December 13, in reply
to which let me say that there can not be any
objection to permitting the mills to substitute
other warehouse receipts for cotton receipts
during the life of the acceptance.
The second question, whether receipts must
be registered warehouse receipts or receipts of
warehouses belonging to the mills receiving the
credit, I have to refer you to our letter of
Special Instructions No. 2, 1916, of which I
inclose a copy, in which you will find that we
say under "f": "In purchasing or discountingbankers' acceptances or other bills which are
secured by warehouse receipts, etc., the Fedoral Reserve Banks should make sure that the
receipt is issued by a warehouse which is independent of the borrower."




JANUARY 1,1917.

As to your third question relating to the acceptance of a private banking house made for
a bag company, stating in the body of the
draft that it is for burlap from Calcutta stored
on the docks, I should say that if the credit
were granted before the importation took
place, there would be no objection to continuing or renewing the acceptance while the goods
are on the docks. If it is a new transaction entered into after the importation, as such, had
been completed, it would be a domestic transaction, and in that case it would be a question
whether burlap is to be considered "readily
marketable goods"—in which case the acceptor must be secured by warehouse receipts
or other documents.
You ask me how far you should satisfy yourselves as to the fact of whether or not the
acceptor has been secured by such documents.
As to that, you must use your own judgment.
As I have written you frequently, we do not
want to be too technical, but we must be
certain that the law is not being evaded, and I
think you ought to be careful to impress upon
the acceptor that the rules must be observed
and that from time to time you may have to
inquire as to whether this is being done. Generally speaking, I should say that if you are
dealing with a private firm that you are trusting
and that from time to time must come to you
and report to you about its financial condition, you should, be in a position to find out for
yourself what the methods of the firm are in
the acceptance business and how far it would
be necessary for. you to make further inquiries
and investigations to be certain of your ground.
DECEMBER 15,

1916.

Fiduciary Powers.

In the October, 1916, Bulletin, the Board
printed a list of those States in which it has
determined, upon advice of counsel, that
national banks may properly exercise, in
whole or in part, the fiduciary powers authorized by section 11 (k). Through an oversight,
the State of New York was omitted. Though
national banks have not authority under the
laws of that State to act as trustee, executor,
or administrator, they may properly act as
registrar of stocks and bonds, if authorized to
do so by the Federal Reserve Board.

JANUARY 1,

1917.

FEDERAL EESEEVE BULLETIN.

31

LAW DEPARTMENT.
The following opinions of counsel have been drawee for acceptance, it would become due
authorized for publication by the Board since and payable at once and demand for payment
the last edition of the Bulletin:
should immediately be made. If, therefore, a
sight bill is actually accepted and circulates
Demand and Sight Bills.
Demand and sight bills of exchange must be presented after acceptance in the discount market, it
for payment by the holder within a reasonable time. would, in effect, be nothing more than a promisDemand and sight bills become due and payable on the sory note of the acceptor because the drawer
date on which they are presented for acceptance.
and indorsers would be released by a failure to
If a member bank holds demand and sight drafts for
more than a reasonable time after acceptance, they must demand payment when due; that*is, when first
be classed as overdue paper and considered in substance seen by the acceptor.
as promissory notes of the acceptor subject to the limitaIt may be argued that the terms of a demand
tions imposed by section 5200.
bill differ from those of a bill drawn at sight,
since the holder of the bill payable on demand
NOVEMBER 28, 1916.
SIR: The attached correspondence raises the must not only present it to the drawee but must
question of the status of demand and sight bills actually demand payment in order to comply
of exchange which have been accepted by the with its terms. It is conceivable, therefore,
drawee and which are purchased or discounted that a demand bill might be accepted before
it is presented for payment. Such bills, howby a national bank.
The determination of this question neces- ever, must be presented for payment within a
sarily involves a consideration of the distinc- reasonable time, and the courts might very
tion between presentation for acceptance and properly take the view that a demand bill prepresentation for payment. The ordinary time sented for acceptance and held is not presented
bill, for example, a bill drawn payable 60 days for payment within a reasonable time, since the
after sight, must be presented to the drawer for payment might have been demanded at the time
acceptance within a reasonable time. What is of acceptance and the holder's failure to avail
a reasonable time depends upon the circum- himself of this opportunity would constitute a
stances in each case. After acceptance such a negligent act which would release the indorsers.
bill becomes payable 60 days after the date on
In the case of Kampman v. Williams et al.
which it is accepted, and, of course, must be (70 Texas 568), a demand bill was accepted on
classed as overdue paper if unpaid after the 60 June 23 and was not presented for payment
days expire. In order to have recourse against until December 5. The court held that even
the drawer and indorsers it is essential that a though the bill was payable on demand it beholder should present the bill in such case to came due and payable on June 23, the date on
the acceptor for payment on the date of which it was accepted, or as soon thereafter
maturity; that is, 60 days after acceptance.
as demand could reasonably have been made.
In the case of sight bills there is no fixed date In support of this position the court cited
specified in the bill on which payment must be Daniel on negotiable Instruments (542, sec.
made, but there is an obligation on the holder 605) and Cook v. Cook (19 Texas 437). On
to present such bills for payment within a the authority of this case it would seem that
reasonable time. Sight bills can not be pre- demand bills as well as sight bills become due
sented for acceptance as distinguished from and payable on the date on which they are
presentation for payment, because as the term presented for acceptance and that if payment
"sight" implies, the order of the drawer is to is not made on the date of acceptance in the
the drawee to pay the amount specified in the case of a demand bill it must be made within
bill when presented to the drawee; that is, as a reasonable time thereafter.
soon as seen by him. It is obvious, therefore,
It is the opinion of this office, therefore, that
that if a sight bill should be presented to the sight and demand bills become due and payable




32

FEDEBAL RESERVE BULLETIN.

as soon as they are accepted, and if held by
the bank after acceptance for more than a
reasonable time they must be classed as overdue paper and must be considered, in substance, as promissory notes of the acceptor
which should be included within the limitations
imposed by section 5200; since the failure of the
holder to present for payment within a reasonable time releases the indorsers and leaves the
bank recourse only against the acceptor.
Respectfully,
M. C. ELLIOTT, Counsel.
To Hon. JOHN SKELTON WILLIAMS,

Comptroller of the Currency.

JANUARY 1,1917.

grounds of general policy for the Board to
determine. The purpose of the regulation is
to insure sufficient funds with which to pay the
warrants at maturity. It is respectfully suggested, therefore, that in any case where experience has demonstrated that the due date produces sufficient taxes to provide for such payment at maturity, the Board may properly rule
that the warrants may be purchased by Federal
Reserve Banks even though such warrants
mature before the penalty date.
Respectfully,
M. C. ELLIOTT, Counsel.
To Hon. W. P. G. HARDING,

Governor Federal Eeserve Board.
Eligibility of Warrants.
The Federal Reserve Board may, under the provisions
of Regulation E, series of 1916, authorize Federal Reserve
Banks to purchase warrants which are issued in anticipation of the collection of taxes and which mature after the
date on which such taxes are due but before the penaltyattaches for their nonpayment, if experience has demonstrated that the due date produces sufficient taxes to pay
the warrants at maturity.
DECEMBER 4, 1916.

Regulation E, series of 1916, provides that
Federal Reserve Banks may purchase warrants
which are issued by a municipality in anticipation of the collection of taxes "which are due
and payable on or before the date of maturity
of such warrants; but the Federal Reserve
Board may waive this condition in specific
cases. * * * Taxes shall be considered as
due and payable on the last day on which they
may be paid without penalty."
The law requires merely that the warrants be
issued "in anticipation of the collection of
taxes/' and the fact that the penalty for the
failure to pay taxes does not attach until after
the date of maturity of the warrants is immaterial under the terms of the law itself. The
restriction that the taxes must be due and payable before the date of maturity of the warrants
is one merely of regulation and not of law. The
Board, realizing that this restriction might
bring about hardships in certain cases, inserted
in its amended regulation on the purchase of
warrants the proviso that it might waive this
condition in specific cases. Whether or not it
should be waived in the case in hand is one
which is a question on its merits as well as on




Litigation Involving Constitutionality of Section 11 (k).

The case of Grant Fellows, attorney general
of Michigan, ex rel. the Union Trust Company
et al. v. The First National Bank of Bay City,
Mich., was instituted in the Supreme Court of
the State of Michigan more than a year ago.
The proceedings were in the nature of quo
warranto and were brought by the attorney
general of Michigan at the relation of the trust
companies of Michigan to enjoin the First National Bank of Bay City from acting as trustee,
executor, administrator, and registrar of stocks
and bonds under the permit granted to it by
the Federal Reserve Board as authorized by
section ll(k) of the Federal Reserve Act.
With the permission of the court, the Federal
Reserve Board, by counsel, appeared as amicus
curisB, filed a written brief, and argued the case
orally.
On September 26, 1916, the Supreme Court
of the State of Michigan filed an opinion holding that though the exercise by a national bank
of the powers specified in section ll(k) would
not be in contravention of the laws of the State
of Michigan, nevertheless, Congress in granting
to national banks the right to act as trustee,
executor, and administrator exceeded its constitutional powers and that section ll(k), therefore, is unconstitutional and void.
A writ of error was granted to the Supreme
Court of the United States and, on motion to
advance, the case has been assigned for hearing
by that court on February 26, 1917.

JANUARY 1,1917.

33

FEDERAL RESERVE BULLETIN.

SUMMARY OF BUSINESS CONDITIONS DEC. 23, 1916.
District No. 1Boston.

District No. 2—
Now York.

Crops:
Condition.
Outlook.
Industries of the
district.

Busy.

Construction,
building a n d
engineering.
Foreign trade

Active

Bank clearings

Increase.

Money rates

Increase over last
month.

Railroad, p o s t office, arid other
receipts.

Increase

Outlook..
Remarks.,

Satisfactory

District No. 7—
Chicago.
General business... Large volume still
maintained.

Satisfactory

Yield below normal;
prices high.
, Record preparations
anticipated.
Engaged to capacity. Prosperous

activ- Very good, but
hampered by labor and c a r
shortage.
Increasing
Fairly busy

Large increase

Very active

Good..
E x c e p t i o n all 3- Active
busy.

About same.,

R a i l r o a d , post
office, and other
receipts.
Labor conditions .

Increasing...

E a s y a n d unchanged.
Perceptible
increase.

Increasing.
Slight increase in
some money centers.

In demand at full
wages.

Promising
Quite favorable
Inadequate trans- Jobbing, retail, and
general business at
portation facilities and shortage
high water.
of fuel curtailing
output.
District No. 10—
Kansas City.

District No. 11—
Dallas.

Fair.
Good.

District No. 12—
San Francisco.

Excellent.

Moderate

.

Very good..

Active.

Not as promising as
at this time last
year.

Encouraging
Working to capacity.

Money rates

27 per cent increase
over last year.
4 to 6 per cent; demand somewhat
improved.

Fully employod

Good

Outlook
Industries of the
district.

Increase

Considerable improvement.

Increase for year; Still show increases.. Increasing.
docroaso in * November against
October.

Satisfactory

Increase

B u i l d i n g much
above average for
season.
Exports increased
100 per cent over
last year.

Firmer

District No. 9—
Minneapolis.

Satisfactory

Fairlv active

Operating full capacity.

Increasing

Exports for November 186 per
cent more than
same month last
year, and 58
per cent more
than October,
1916.
Increasing

Crops:
Condition

Construction,
building^
and
engineering.
Foreign trade
Bank clearings

Winter crops fair.

Recession over 30
days ago.

Now on moderate Rates advanced
in early part of
level and firm
month; no maafter s e v e r e
terial reduction
strain in call
since.
money for sevor| al weeks.
Railroad net earn,| Increasing
ings decreasing;
post-office receipts increasing.
Well employed, Good labor scarce,
and wages adwages high.
vancing.
i Uncertain
Good....'
I Continued activ- Christmas savings
club disburse! ity in trade and
ments in district
I industry a n d
this year were
i satisfactory colS9,39o"844.
lections.
District No. 8—
St. Louis.

District No. 6—
Atlanta.

, Highly satisfactory. Excellent.

Normal

Sustained
ity.

Exports decrease; Recent weekly total slightly lowimports increase.
er than a year

Labor conditions.. Well employed

Excellent

Good.

R e t a i l holiday
trade l a r g e r
than ever before.

Very good.

Good.

General business... Excellent, b u t
signs of hesitation.

District No. 5—
Richmond.

District No. 4—
Cleveland.

District No. 3—
Philadelphia.

Winter crops in
good condition.

Practically all harvested except citrus fruit.

Continue at capacity.

Active.

Shipbuilding and
mining especially active; lumbering improving.
Increase.

; Above normal

Normal

j

Satisfactory.

Outlook..

Favorable...

Remarks.

General prosperity; uncertainty
as to future:
satisfactory collections.




-.
Slight decrease
Steady
Increasing

People well em- ! Good
ployed at good I
wages.
I
Promising
j G ood

| Less active
| Increase
Indication of hard! ening.
! Increase
Satisfactory.
Satisfactory

: Slight hardening The year has been
one of the most
j in rates; holiday
prosperous in the
I trade excellent.
history of this territory.

Normal
Increase over November last year.
Easy

Increasing.
Increase.

No unemployment
except in building
trades.
Encouraging

Fairly settled.

Tendency
harden.
Heavier than 1915... Increasing.

Holiday trade unusually
heavy;
business generally
on firm basis.

to

Generally favorable.
Little evidence of
increase in cost
of living.

34

FEDEEAL EESERVE BULLETIN.

JANUARY. 1,

1917.

GENERAL BUSINESS CONDITIONS.
There is given on the preceding page a summary of business conditions in the United
States by Federal Reserve districts. The reports are furnished by the Federal Reserve
Agents, who are the chairmen of the boards of
directors for the several districts. Below are
the detailed reports as of approximately December 23:
DISTRICT NO. 1—BOSTON.

Even before the publication of the recent
peace overtures a feeling of hesitation or uncertainty as to the general business situation
had begun to appear among the business men
and manufacturers. This has, however, been
apparent from time to time during the year.
With talk of peace hesitation has become more
pronounced and manufacturers and merchants
generally are awaiting developments before
taking on new commitments.
In some lines the approach of the time for
closing books and taking inventories is restricting purchases. Many of the mills and
manufacturers, however, are well sold ahead
and are unable, or unwilling, to make contracts
with deliveries to start too far in the future.
Christmas trade was unusually brisk. Many
retailers report the largest business in many
years, and some the largest in their history.
The cotton industry is less active and mills
are booking little new business, due to the
recent drop in cotton, the peace proposals, and
the fact that buyers of goods are busy, either
taking stock or with the holiday trade. The
mills are well sold ahead and prices for fine and
fancy goods continue firm, with a little weakness evident in print cloths.
Wool brokers have little wool on hand and
with limited sources of supply are not anxious
to make sales, and, therefore, prices have held
firm. Mills have many contracts for future
delivery, and the quarterly statement of the
National Association of Wool Manufacturers
as of December 1, 1916, shows a smaller percentage of idle woolen and worsted spinning




spindles than any time during the last year
and a half.
Manufacturers of boots and shoes have accepted all the advance orders that they can
handle, and, as their leather requirements are
well covered, are little interested in the present
market. The demand from consumers is not
so urgent. The demand for leather is lighter,
with little change in prices.
During the month there has been considerable activity in money, and higher rates have
prevailed than for some time. After the first
rapid increase, rates reacted but continue firmBanks in this district have been well loaned up
for some time, and with an increased demand
for accommodation members have taken advantage of their rediscounting privilege with
the Federal Reserve Bank. This has tended
toward keeping rates on a reasonable basis.
The statements of the Boston Clearing House
banks still show but small surplus reserve, and
rates will, therefore, probably remain firm until
after the January disbursements, although the
present heavy liquidation in securities may
have a reactionary effect. Rates are—call
money, 6 per cent; six months7 money, 4-| to 4f
per cent; year money, 4-| per cent; bankers7
acceptances, indorsed, 2J per cent upward;
unindorsed, 3 per cent upward; town notes,
3£ per cent upward.
Loans and discounts of the Boston Clearing
House banks on December 16 show a decrease
of $14,842,000 from last month and demand
deposits have decreased $2,534,000 in the same
period. The amount "Due to banks77 on
December 16 was $121,753,000 as compared
with $143,312,000 on November 18. The
excess reserve of these banks decreased from
$26,615,000 on November 18 to $25,816,000
on December 16.
Exchanges of the Boston Clearing House for
the week ending December 16 were $280,152,120, as compared with $192,350,968 for the
corresponding week last year and $277,309,318
for the week ending November 18.

JANUARY 1,1917.

FEDERAL EESEBVE BULLETIN.

Building operations in New England from
January 1, 1916, to December 20, 1916,
amounted to $204,936,000 as compared with
$175,465,000 for the corresponding period of
1915 and $195,393,000 for the same period in
1912, the highest previous year on record.
Exports from the port of Boston for November, 1916, amounted to $16,329,327 as
compared with $19,706,548 for October, 1916,
and $9,219,676 for November, 1915. Imports
for November, 1916, amounted to $11,058,247,
an increase of $1,671,348 over October, 1916,
and a decrease of $1,953,020 from November,
1915.
The receipts of the Boston post office for
November, 1916, show an increase of $5,235,
or only about 1 per cent over November, 1915.
For the first 15 days of December receipts were
about 18 per cent, or $79,780, over HIG corresponding period of last year.
Boston & Maine Railroad reports net operating income, after taxes, for October, 1916, as
$1,385,762, as compared with $1,248,165 for
the corresponding month of 1915. New York,
New Haven & Hartford Railroad reports net
operating income, after taxes, for October,
1916, as $2,061,176, as compared with $2,196,853 for the same month last year.
DISTRICT NO. 2—NEW YORK.
During the last few days special reports on
business conditions have been received from
a large number of firms and corporations.
These advices show that trade and industry
in general have continued active and practically unchanged notwithstanding developments
in the European war situation, the disturbance
in money rates, and the very unsettled stock
markets.
Some wholesale distributors report a seasonal lull in orders, as usual at the approach
of the inventory period, but retail stores are
handling an unprecedented volume of holiday
trade. Collections generally are very satisfactory. Materials are still scarce and deliveries
of goods are somewhat hindered by a shortage
of freight cars. The closing down of certain




35

outside activities and workmen seeking sheltered employment during the winter months
have considerably improved the labor situation.
Several important industries have announced
further increases in wages. Financial institutions are distributing among employees substantial bonus additions to salaries as compensation for the increased cost of living.
Some of the reports received on conditions
in various trades and industries are the following :
Steel.—No change in volume, payments normal, orders booked in advance, and record
unfilled orders reported by the leading producer.
Copper and lead.—A growing demand
throughout the fail, at constantly advancing
prices, until about three weeks ago, when
demand fell off and prices receded.
Leather.—A seasonal lull in buying, prices
firm, and some weakness in *the price of raw
stock.
Sugar.—Business quiet, but this is normal
at the season when grocers are taking inventories. Prices of refined sugar tending downward.
Rubier.—Factories exceedingly busy on domestic orders, jobbers and retailers holding
light stocks. Collections satisfactory.
Paper.—Demand for news print paper exceeds anything heretofore known, exceeding
for the first time the producing capacity of the
mills. This is accounted for by increased advertising and circulation. Everything entering
into the manufacture of paper has increased in
price. Foreign orders are large, and imports
of foreign-made paper have fallen off considerably.
Drugs and chemicals.—Some recessions have
occurred in prices of goods of foreign origin,
but domestic goods have advanced. Export
orders are large. Collections satisfactory.
Carpets and rugs.—Mills sold far ahead and
no change in the heavy demand for floor coverings of all kinds. Outlook in the retail trade
is satisfactor}^ and collections are good.
Builders9 hardware.—Since the outbreak of
the war the erection of new buildings has

36

FEDERAL BESERVE BULLETIN.

JANUARY 1,

1917.

Business failures.—Brads tree t reports 86
lagged, which has directly affected the volume
of this trade; but there has been a perceptible failures in the district during the month of
increase recently. The trend of prices has been November, of which 78 represented concerns
constantly upward. Collections are good, as with capital of $5,000 or less. This compares
with 87 failures in October, 73 in September,
they have been during the last 18 months.
Food products.—Short crops generally and a and 65 in August.
Chemicals.—There is considerable activity in
great domestic demand have caused prices to
rise, and when seasonal orders are filled stocks the market for chemicals, most of the products
remaining in the hands of wholesale houses being firmly held. Prices of dyes tuffs have
will not be large. Retail trade is very brisk declined somewhat. This is said to be due to
speculative sales. Drugs and druggists' sunand payments are satisfactory.
Wholesale clothing.—The volume of trade dries arc in fair demand.
Coal.—Shipments of anthracite for Novemcontinues to be unusually large, and prices are
still rising. Collections are exceptionally good. ber amounted to 5,993,000 tons, an increase of
Money rates are firm and now on moderate 123,000 tons over the previous month, but a
levels after several weeks of unusual strain, decrease of 501,000 tons as compared with
November, 1915. The anthracite situation is
particularly in the call loan markets.
The statement of the New York Clearing slightly easier than earlier in the month, with
House Association dated December 16, 1916, approximately the same prices prevailing.
showed loans, etc., $3,342,471,000, deposits Bituminous coal shows continued strength,
$3,465,670,000, and excess reserves $94,447,- with a strong, steady demand. Snowstorms
320. Since November 4 last these figures have tied up the railroads in the bituminous region,
decreased as follows: Loans, etc., $14,576,000, with the result that the mines reported the
deposits $60,921,000, excess reserves $29,- I poorest car supply this year. The coke market
659,720. Comparison with the totals of De- is strong.
cember 31, 1915, shows loans increased $84,Cotton.—The cotton-goods market is now
865,000, deposits decreased $1,050,000, and quieter, as the usual end of the year dullness
excess reserves decreased $51,503,810.
has appeared. Manufacturers are acting cauExports from the port of New York for the tiously and are buying only for present needs.
week ended December 9 compared with the Export demand and domestic trade of good
corresponding period in 1915 show a decline of volume have made this a successful season.
$7,326,820, but the total since January 1 is
Crops.—High prices for Lancaster County
$1,074,847,889 higher than last year.
tobacco have brought out practically all of the
Gold imported from all sources since Janu- old stock. Some of the new crop has been
ary 1, 1916, has reached a total of $608,500,000. delivered to warehouses as the weather has
been favorable to seasoning. Farmers believe
DISTRICT NO. 3—PHILADELPHIA.
There is apparently no decrease in the ac- there will bo a scarcity and high prices next
tivity of the leading industries, and complaints year regardless of the war, and they are, thereconcerning the difficulties in the production fore, planning a larger acreage for 1917. Reand delivery of goods are still heard. This ports of the Pennsylvania State Department of
situation is especially noticeable in textiles and Agriculture indicate that the condition of winter wheat in the ground averages 98 per cent,
leather.
The department stores in Philadelphia are and the condition of rye 99 per cent. Recent
doing a larger business than ever before, and snow since the report was published has impeople are buying higher class goods. The proved the conditions. Final reports of the
cold weather has been an added stimulant to 1916 cereal crops in Pennsylvania indicate that
the demand for strictly seasonable merchandise. although there was a shortage in yield, the




JANUARY 1,

1917.

FEDERAL RESERVE BULLETIN.

total value exceeded that of last year's crops
by almost 20 per cent.
Glass.—The price of window glass remains
firm, though the demand has slightly fallen off.
Purchases are made according to requirements.
Stocks in jobbers' hands are normal, and there
is an absence of any speculative features.
Groceries.—Business has been somewhat quieter among the wholesale grocers during the
past month, but is still good. As is usual
during December, retailers are too busy with
holiday trade to give their time and attention
to extended purchases of goods. Prices in
some communities have declined slightly.
Collections continue fairly good.
Iron and steel.—Car shortage has checked
steel production, but the high prices have held
up earnings. Plants are sold ahead for the
greater part of next year and are running at
full capacity. The activity in pig iron, however, is diminishing as prices go higher, but
quotations continue upward. The overwhelming demand for ship plates continues, Norwegian, Italian, and Japanese interests being energetic in their requests for ship steel. Railroads
are considerable buyers, and good sized orders
have been placed for locomotives both for
domestic and foreign roads. It is. reported
that the Baldwin Locomotive Works now have
enough locomotive orders to keep busy for the
first half of 1917. Concerning the Steel Corporation's increase of over 1,000,000 tons in
orders in November, it is stated on authority
that out of nearly 2,500,000 tons booked in
that month, less than 10 per cent is to be
classed as export emergency business.
Leather.—The leather market presents no
new aspect. Tanners are refusing to make
large sales to either domestic or foreign buyers,
and are endeavoring to make the best division
possible of the stock at their disposal among
domestic customers. Hides have dropped
slightly, but this has not affected leather buying or leather values. The cost of raw material and of production has increased materially
and the continuance of the present prices seems
to be recognized by buyers as inevitable.




37

Lumber.—Generally satisfactory conditions
seem to prevail in the lumber industry at the
present time. The demand for all kinds has
been firm. The orders taken are mostly confined to short-time deliveries, due to uncertainty attributable to the actual scarcity of
lumber, because of shortage of labor and of cars
available for shipping purposes. Very little
lumber is being received from the West, most
of the supply coming from southern mills.
Building statistics encourage expectations of a
big demand the next few months. It is also
noted that new undertakings in the way of
moderate-priced residences are very extensive.
This is a reflection of the increased prosperity enjoyed by workers in manufacturing
centers, and as lumber is largely used in these
projects a continued active demand is expected. The rise in quotations of structural
steel is causing the substitution of lumber, and
with the prevailing anticipation that spring
demand will be vei'y active, prices are hardening.
Paints.—The past season has been a busy
one for the painters, and there is considerable
work in sight. Flax and linseed oil have advanced steadily, and whiting is in good demand, the lack of sufficient supply of chalk
still hampering makers of this product. The
advancing productive costs have caused paint
and varnish makers considerable anxiety, and
the outlook indicates that higher figures must
rule if a reasonable profit is desired. The demand for metallic paints is so heavy that
makers are unable to keep up with it.
Port.—The commissioners of navigation report the value of exports from the port of
Philadelphia during the month of November
as $41,467,000, an increase of 826,995.000 over
the shipments made during the corresponding
period of last year, and an increase of $16,250,000 over October of this year. The value
of war materials exported was 62 per cent of
the total value. Of other commodities exported, oil products show the heaviest gains.
An increase of $1,881,000 is shown in the value
of the imports, the values for November roach-

38

FEDERAL RESERVE BULLETIN.

ing a total of $6,947,000, as against $5,065,000
for November, 1915, and §7,603,000 for October of this year.
Post-office receipts.—Receipts of the Philadelphia post office for the month of iSFovember
amounted to 8826,094, compared with §783,981
during November, 1915. There were 267,342
money - order transactions, amounting to
$1,985,087, an increase over the previous November of 7,062 and $186,747, respectively.
Railroad car movements.—The Pennsylvania
Railroad, as a result of cooperation of freight
solicitors and shippers, is moving the present
immense volume of freight over its lines at
an average increase of 2 tons per loaded car
as compared to last year's records. This increase covers all classes of freight. More
powerful locomotives and larger cars are used.
Shipbuilding.—World-wide conditions have
brought an unprecedented expansion in the
shipbuilding industry. The demand for merchant tonnage and the diversion of British
yards almost exclusively to building war vessels
have combined to bring tremendous pressure
on our shipyards. Before the war, American
companies were not building many ships for
other countries, but now, our yards, greatly enlarged, have begun to turn out vessels for foreign
owners. Merchant tonnage in the Philadelphia
Federal Reserve district under construction
November 1, 1916, is as follows: Number, 87;
gross tons, 412,408. To be launched during
fiscal year ending June 30, 1917: Number, 59;
gross tons, 270,464. June 30, 1918: Number,
28; gross tons, 141,944.
Textiles, etc.—Textile manufacturers are extremely busy. There is a scarcity of goods in
many lines, and the holiday trade has materially reduced the stocks of jobbing houses.
The carpet and rug trade is brisk, scarcity of
raw materials and high wages interfering with
production. Conditions in the silk trade have
improved slightly, there having been some
buying of spring goods; reports from manufacturers indicate that the capacity of the silk
mills has been much increased. The tapestry




JANUARY 1, 1917.

mills are better engaged than a month ago.
General trade in dry goods has been good.
In accordance with an estimate made by
officials at the Schuyikill Arsenal, the Government will be in the market for more than
$15,000,000 of Army supplies, mostly clothing
items, during the first half of 1917.
Wool.—Uncertain prospects have suddenly
brought the wool trade almost to a standstill.
Prices had reached the highest point possibly
ever known, and profits have been abnormally
large. It is reported that the accounts being
carried are of twice the usual amount, yet settlements are promptly made.
" Cfiristmas Savings Club" disbursements*—
The first "Christmas savings club" in the
United States was opened by one of the trust
companies in Pennsylvania in 1909 and, since
that time, each year has witnessed increasing
numbers of banking institutions conducting
such clubs. Efforts were made to secure information from all banking institutions in the
district as to the amount of Christmas savings
club disbursements. The table below shows
that this year 457 institutions returned over
$9,000,000, the largest disbursement of any one
institution being about $383,000.
Banks Banks Amount
conreport- duct- of Christmas
ing no
ing
Christ- Christ- savings
club dismas
mas
savings savings burseclubs. clubs. ments.

Number of
banks
in district.

National banks....
Trust companies -.
State banks
Total

Number of
banks
replying.

Per
cent of
banks
replying.

632
228
133

576
182
114

Per ct.
91
80
86

303
71
41

273 83,948,319
111 4,240,885
73 1,206,640

993

872

88

415

457

9,395,844

Money.—During the first half of the month
surplus reserves of the Philadelphia banks
reached the lowest level, proportionately, since
the establishment of the Federal Reserve
Banks. Call money rose from 3-| to 5 per cent,
other rates being also advanced, and there
has been no material reduction since. Most of
the local banks are well loaned-up.

JANUARY 1,1917.

FEDERAL RESERVE BULLETIN.

DISTRICT NO. 4—CLEVELAND.

Entirely inadequate railroad facilities and a
shortage of fuel, including coal, coke, and natural gas, have caused some curtailment in
operations during the last month. The situation in this respect has been aggravated by zero
weather and snow. Notwithstanding these
obstacles, reports on conditions continue quite
satisfactory. The partial disturbance in stock
and commodity markets, caused by developments in the foreign situation, seems to have
had absolutely no effect upon industrial and
mercantile operations and little or none upon
industrial and commercial sentiment.
Agriculture.—There is nothing new to report
in the general agricultural situation. The
tobacco crop is bringing prices beyond all record. Common grades that last year brought
from $3.50 to $4 will to-day sell for around $9
to $11 per hundred. In some parts of the district values of farm lands have sharply increased, with considerable activity in exchanges
and sales at the increased prices.
Raw materials.—During 1916 over 67,000,000
tons of ore have been brought down the Great
Lakes. There has been produced over 40,000,000 tons of pig iron. Prices have advanced slightly during the last 30 days.
The lumber trade, which is quite an important one in this district, has not participated in the present prosperity as much as
other interests. The volume during the year
was somewhat smaller than the average for a
series of years and profits less. The explanation offered is high costs in primary markets
and difficulty of prompt delivery which influenced dealers to take less chances in maintaining full stocks.
Fuel.—The coal business is quite active at
prices somewhat under what they were a
month ago. The freight embargo is being felt
in this industry. Both coal and coke trades
are looking forward to 1917 as registering the
largest and most uniformly profitable business
ever experienced. This view is based on the
fact that 6 and 12 months contracts are now
being concluded with large consumers at prices




39

ranging 50 cents to $1 a ton over the contract
prices realized for the 1916 output.
Oil and gas interests are prosperous. In
some instances prices being paid for oil are the
highest ever recorded. Great activity is taking
place in the Kentucky oil fields. Production
is increasing in that district and considerable
money is going there for investment. The clay
industry is active in all its branches.
Manufacturing.—The steel business is entering 1917 with the largest order book in its history. The amount and character of these
orders, the safeguards adopted for enforcing
legal contracts, the proportion of actual specifications for orders given appear to assure full
operations for the ensuing 12 months at least.
The business also has been distributed. It has
come from railroads in all their lines, shipbuilding both on the ocean and the Groat Lakes,
from structural and bridge work. There has
also been a general requirement in the way of
pipe, tanks, and specialties which altogether
has created a demand beyond anything in the
steel business in this country or elsewhere.
Costs, however, are increasing, and it is doubtful whether the profits will be as great in 1917
as in 1916. Manufacturing concerns of every
kind report orders ahead at satisfactory prices,
ranging from three months to a whole year,
and in exceptional lines talk is heard of deliveries being deferred to 1918.
Optimistic reports on conditions, in addition
to steel and its products, include such industries as glass, electrical goods, rubber, automobiles, pottery.
Garment and knit-goods manufacturers report an excellent demand for spring goods.
They expect to see wool prices well maintained,
stating that prices of 1915 were abnormally
low.
Transporiatioji,—The year will probably close
with the worst car shortage yet experienced.
Limited embargoes exist on a number of lines
and temporary suspensions and shutdowns are
occurring in some industries affected. Traction travel has taken on its usual expansion for
the holidays.

40

PEDEKAL KESEKVE BULLETIN.

JANUARY 1, 1017.

Labor,—Labor is fully employed and gen- as earlier in the year, Comparative table is
erally is satisfied. Restlessness is noticed only given herewith:
in a very few reports. Three advances were
made during the year in which workers in steel,
Valuations.
Permits issued.
Per
cent
Increase
coke, and kindred industries participated.
inor
Novem-! Novem-J Novem- Novem- decrease. crease
Although this is a between-seasons period
ber, ber, 1915. ber, 1916.
or deber,
1915.
crease.
1916.
for jobbers in mercantile lines, the demand is
relatively good, prices firm, and collections Akron
277
422 S535,105 $1,164,465 §629,360
117.6
790,965 771,195
19,770
fine. Department stores are* doing the best Cincinnati... 1,269 1,139 2,434,715 2,843,245 i i408,530 "12.5
1,012
16.7
Cleveland
1,131
347,350 554,965 207,615
243
59.7
217
business in years—some report the best in all Columbus
131,075 315,997 184,922
54
141.0
Dayton
120
663,312 916,806 253,494
303
Pittsburgh...
38.2
328
their experience. Comparative percentages of Toledo
535,755 543,270
230
7,515
1.4
229
203,790 269,635
79
65,845
Youngstown.
99
32.3
sales do not disclose the real increase in business
3,4(37 I 3,085 15,642,067 7,379,578 jl, 737,511
30.8
because of the higher prices of goods sold. For
example, a number of retail shoe stores report
Permits isPer
a decline in the number of pairs sold but a
sued for year Valuations, year ending—
cent
ending—
| Increase ingreater money value in the sales volume.
crease
•!
or
Post-office receipts for the eight large cities in
Nov. Nov. N o v . 30, N o v . 30, ! decrease. or
de80,
30,
1915.
1916.
crease.
the district for November showed a decrease
1915. 1910.
of approximately 5-J per cent compared with
Akron
2,153 4,590 So, 072, 840S12, 41,84
,669,006 151.1
October but almost a 10 per cent increase over Cincinnati
15,734 16,161! 13,121, 268"- 10, 943,145 2,178,123 i 16.6
Cleveland
14,166 14,042i 32,891, 255 30, 027,280j 2, SG3,975 18.7
November of last year. Figures are given Columbus
2,823 3,129 5,783, 285' 7, 102,240! 1,318,955
22.8
Dayton
818! l,379i 2,157, 672^ 3 , 478,003! 1,320,391
61.2
below:
Pittsburgh
3,8161 4,255! 14,881, 990; 15, 350,4901, 468,500
3.1
c"A

r\t>K

I

onr>

u-tc

]

!

Per cent
November, November, Increase or increase or
1916.
decrease.
1915.
decrease.

7,358, 200' 9, 601,499 2,243,299
338*^
3,182, 9051 3 , 521,739

30.4
10.6

43,339! 49,160; 84,449,415' 92,766,302 8,316,887

Toledo..'...
Youngstown...

9.8

.2,74fij
1,083

4,269i
l,335i

i Decrease.
Akron
Cincinnati

Cleveland
Columbus
Dayton
Pittsburgh
Toledo

855,253
279,976
330,553
100,460
69,498
361,816
95,430
27,118

853,243
252,189
297,617
88,656
71,045
323,948
87,053
24,532

S2,010
27,787
32,936
11,804
M-, 547
37,868
8,377
2,586

3.7
11.0
11.4
13.3
16.1
11.6
9.6
10.5

Total

1,320,104

1,201,283

118,821

9.8

Youngs town

1

Decrease.

Real estate and building.—Compared with
last month, building, because of weather conditions, shows a decrease. About 1.000 less
building permits were issued in the large cities
of the district in November than in October.
There is an increase of almost 31 per cent in
valuations of new buildings in November,
1916, over November, 1915. This is very
satisfactory in view of high costs for materials
and difficulty in getting labor. Real estate
brokers report a brisk demand for moderate
sized homes. New buildings are being erected
in the down-town section of all our cities.
Factory building and extension is not so evident




Collections.—Credit men report more satisfactory collections than last month. The
strain on capital of smaller concerns is found
occasionally, due to increased funds necessary
to carry inventories and customers. Business
men, however, are not quite as daring as they
were a few months ago. The inevitable readjustment has as a rule been kept constantly
in mind for the last six months and corporation management is much more conservative
to-day than ever before at the end of a year of
unprecedented prosperity.
Money and investments.—High-class bond investments have been in heavy demand during
December. This is due to the disturbance in
speculative securities and the continued accumulation of funds. Money is ruling firmer than
it did 30 days ago. Clearings continue to show
large increases both over figures for the same
period last year and for the preceding month
this year. Banking transactions of all kinds

JANUARY 1,1917.

FEDERAL RESERVE BULLETIN.

41

and the establishment of small industries,
including additions to many existing plants.
Building.—Jobbers in this line report an
increased volume of business, a large volume
of new building being underwa}^, notwithstanding the advance in prices of supplies and the
high cost of labor. These conditions are indicated throughout the district. Richmond, Va.,
leads with a reported increase of 73 per cent
Per cent
in the volume of building over this time last
Doc. 1 to
Dec. 1 to
Increase. |
of
15,1910.
15,1915.
i increase. year.
Coal.—Mining of bituminous coal continues
92.6
$5,774,000 $11,121,000 85,3-17,000
Akron
24. S on a favorable basis, but shipments are being
69,023,150 86,204; 013 17,180,863
Cincinnati
88.6
79,153,594 149,345,125 70,191,531
Cleveland
32.7 retarded by continued car shortage. The
18,128,500 24,053,300 5,924,800
Columbus
27.5
129,231,786 164,803,836 j 35,572,050
Pittsburgh
45.7 manufacture of fire brick in some of the coal
Toledo.
16,141,779 23,520,370 i 7,378,591
35.9
Youngstown
| 4,600,737
7,180,828 | 2,580,091
regions is on an unusually good basis. Port
44.7
322,053,546 1466,228,472 ; 144,174,926
shipments of coal continue to show a decrease.
I
I
I
Prices are firm, with a scarcity of freight
DISTRICT NO. 5.—RICHMOND.
room and a continuance of high rates.
Trade, agricultural, and other reports indiCotton mills.—Conditions are reported satiscate a continuance of the full tide of prosper- factory from every standpoint—mills running
ity, with occasional conservative notes of to full capacity at profitable prices, distribuwarning in anticipation of a readjustment to tion good, and mill stocks at a minimum.
more normal conditions. Such a return is
Sales to retailers are in fair volume but
anticipated, without any material recession in limited, owing to the uncertainty of future
business.
trend of prices and to the high price of cotton.
The continued high cost of materials, labor, Prices are also affected to some extent by the
and particularly living, is commented upon anticipation of a greatly increased acreage in
everywhere. Concerted effort toward cost cotton next year. Although prices for cotton
reduction is being made by housewives and have declined very materially within the past
many organizations.
week or 10 days, goods are firmly held and have
Reports as to conditions among the farmers not declined proportionately. Spot goods are
emphasize properous conditions, and indicate very firm and future deliveries only slightly
great activity in the preparations for future less so. There is a note of caution, however,
crops. Truckers and canners have had a sounded by several conservative operators as to
successful season, both as to output and prices. abnormal prices, closer margin of profit, and
Tidewater Virginia has raised an unusually possible reaction from present conditions.
large crop of fall Irish potatoes, which are
Exports continue in large volume, the movebeing sold at $4 to $5 per barrel. The fish ment from Baltimore, Norfolk, Newport News,
and oyster industry in the same section has and other ports indicating an average increase
been unusually profitable, and the menhaden of about 100 per cent over last year.
fisheries of Chesapeake Bay have had a better
Furniture.—Conditions are reported to be the
season than for several years past. The pro- best prevailing in many years, plants running
duction of fish scrap by this industry is an to full capacity, and the outlook favorable for
important factor in the fertilizer trade.
a continuance of this activity. The advance in
The industrial agent of a trunk railroad re- price of the finished product appears to have
ports general activity in farming, stock raising, balanced the advancing cost of raw materials,
aggregate totals of unprecedented size, and the
volume of business is keeping up unabated.
There are at present no signs that the unearned
portion of our prosperity will have to be paid
for in 1917, since the momentum already acquired will likety carry the movement for at
least that period. Comparative figures on
clearings are given below:




42

FEDERAL RESERVE BULLETIN.

leaving a satisfactory margin of profit. Collections are good, with a considerable increasing demand for goods.
Jobbers.—"Plave never known conditions
to be better," is the way one jobber puts it ;
and this seems to be a fair report of the trade
conditions generally. Buyers are rarely asking
for any extensions, and an unusual number are
discounting bills. There seems to be, however, considerable difference of opinion as to
the future. Large business is generally expected, but many look for lower prices and
predict that jobbers and retailers will only
purchase moderately, at least until there is
some recession in prices. There is a disposition to reduce stocks and keep commitments
well in hand.
Live stock.—The interest in this line continues to be gratifying, the reports from sales
indicating high prices and a profitable return.
One point reports a sale of 350 hogs, attended
by buyers from Richmond, Baltimore, and
nearer points.
A still more gratifying indication is the importation into the district of better grades of cattle.
One stockman has purchased 200 AberdeenAngus cows and 6 bulls.
Lumber.—The lumber business has had a
general and steady improvement during the
past 60 days. A much stronger demand has
developed for the better grades of lumber,
which have been very stagnant since the European war. This indicates reduced stocks, an
improved demand, with a stiffening in prices,
the improvement averaging apparently $1.50
to $2 above prices prevailing 60 days ago. The
outlook is for further improvement.
The hardwood trade was v6ry much demoralized by the European war, but is now reported as in excellent shape. The interrupted
trade with the belligerent nations has been
replaced by demand in other directions, and
the vohirne of sales is showing a steady improvement over last year.
Machinery and metals.—The machinery demand is rather beyond capacity as to prompt
deliveries, owing chiefly to difficulty in obtain-




JANUARY 1,

1917.

ing raw material. The increased cost of material and labor has restrained trade less than was
expected, but the heaviest purchases of machinery in this district has gone into revamping, balancing up, or enlarging in a moderate
way existing plants, rather than to undue
expansion in new plants. Sales are largely for
cash, evidencing prosperity among the mills.
Metal houses report an abundance of orders
sufficient to take their product several months
in advance, without any apparent relaxation
in the demand. Export orders are not being
sought, as the home demand is sufficient to
pretty well consume the supply. Pipe foundries, furnaces, etc., are running to full capacity
with orders ahead for all they can produce.
Money and banking.—Deposits are at highwater mark, and many banks have sought outside investments, but these appear to be wisely
limited to such as are of a liquid nature. Bank
reserves have indicated a decreasing tendency
of late, many banks having furnished considerable amounts of money to borrowers on shortterm notes, trade acceptances, or commodity
notes, representing the purchase of cotton,
cotton seed, and other products. ' Much of this
financing has been done by the banks without
finding it necessary to rediscount with the
Federal Reserve Bank to any large extent.
The peanut crop is reported to be of good
quality and slightly below normal. There is
some disposition to hold peanuts for better
prices. This is being done in spite of the fact
that prices are already high enough to have
discouraged much speculation. The demand
is active for all grades, and cleaners are handling
the crop freely on a fair basis of milling profit.
Railroad earnings show an average increase
of about 10 per cent, with a strong pressure for
cars, indicating the offering of an increased
volume of traffic.
Clearing-house returns from the district indicate an increase of 27 per cent over last year,
postal receipts and money-order business continuing in increased volume.
Federal Reserve clearings for the month
ending December 15 show an increase of 1.69

JANUARY 1,1917.

FEDERAL RESERVE BULLETIN.

per cent in the number of items and 2.69 per
cent in the volume.
Shoes.—Reports in this line seem to be conflicting, indicating some unsettlement, at least
in the minds of jobbers and manufacturers.
One large manufacturer summarizes the situation as being " without parallel/' but evidently
anticipates that present conditions can not last
indefinitely and urges caution. Another says
goods are selling at prohibitive prices, and lie
is therefore buying materials very cautiously,
as experience teaches that prohibitive commodity prices always result in reaction. Retailers
have been buying liberally and collections have
been good. Manufacturers are not disposed to
urge sales, as they do not consider it desirable
for jobbers to overload at these prices.
A large lumber company, a subsidiary of the
Norfolk-Southern Railroad, reports the sale to
northern capital of 45,000 acres of land in
eastern North Carolina to be developed for
farming and stock raising. The lands in this
section have heretofore been unavailable for
lack of drainage. Under a new State drainage
law, districts have been formed, under which
the financing of scientific drainage has been
accomplished.
On the Maryland Stool Plant, recently purchased by the Bethlehem Steel interests, an
expenditure of $40/000,000 to §50,000,000 is
contemplated. The Newport News Shipbuilding & Dry Dock Co. has extensions and improvements to its plant underway to cost
$1,000,000. This plant has orders far in advance of production.
The purchase by the United States Government has just been announced of 1,700 acres
of land on Back Bay, adjacent to Fortress
Monroe, for use as an aviation Held and proving
ground for the Army. The War Department
will ask for an appropriation for buildings and
equipment.
The city of Norfolk has just made an appropriation of $391,000 for the purchase of a
water front for municipal docks and manufacturing plants.
Appropriations for the Norfolk Navy Yard
authorize the construction there of one of the




43

two dry docks capable of receiving the largest
vessels which can pass through the Panama
Canal locks. Bids for the building of this
dock are shortly to be asked.
The Government has purchased at Cape
Henry the necessary site for the erection of
the most modern defenses for the entrance of
Chesapeake Bay.
DISTRICT NO. 6—ATLANTA.

Conditions have not materially changed in
the district during the past 30 days, except for
an unusual activity among retail merchants
due to the enormous volume of buying incident
to the holiday season. There is an abundance
of money in this section of the country and a
feeling of confidence that the prosperous times
are to continue. The cities report crowded
stores and large increases in the number of
sales as well as volume of business.
Bank deposits continue to grow and some of
the banking centers report demands for loans
considerably increased in the past 30 days.
Collections are exceedingly good for this season
of the year. Real estate is somewhat more
active. Building operations show considerable
gain, and according to figures given out by the
American Contractors Association the following increases are reported in the larger cities of
our district: New Orleans, 49 per cent; Birmingham, 37 per cent; Nashville, 32 per cent;
Atlanta, 22 per cent.
The various industrial and manufacturing
plants of the district continue to operate at
capacity and more favorable reports come from
the coal-mining section. The car shortage is
less acute and coal operators anticipate further
relief in this respect in 1917. Among the
special features is the wide development of the
graphite mines in Alabama. • Many new companies have been formed and operators advise
that their output can be sold at a high figure
for the next five years.
The Alabama press report oil found on the
lands of the Pratt Consolidated Co., 33 miles
from Birmingham on the banks of the Warrior
River. The drillers struck oil at a depth of
800 feet, and after drilling into the oil-bearing

44

FEDEKAL RESERVE BULLETIN.

sand only about 12 inches they estimate the
flow already at something like 150 barrels per
day. Further development has been suspended
awaiting the arrival of Gov. Haskell, of Oklahoma, one of the parties interested in the proposition.
At Kingsport, Tenn., an eastern corporation
has purchased several hundred acres of land
and has under construction, and, in a small
way, in operation, a plant for the manufacture
of dyes, by-products, and explosives. This is
an entirely new industry in our district and is
being watched with a great deal of interest.
The outcome of the crops has proven more
satisfactory than forecast indicated, with the
exception of the central and southern portion
of Alabama. Due to the torrential rains during the summer and the ravages of the bollweevil in the latter part of the season these sections produced only a small part of their usual
cotton crop. Their cotton acreage had been
decreased and with a lack of fertilizer a normal
crop was not expected, but it was hoped that
crop diversification would more than offset the
loss. However, a great deal of the corn and
other diversified crops met with the same proportionate damage as cotton and left the producers in these sections in a far less prosperous
condition than in any other portion of the
district.
In the dark-tobacco fields of Tennessee the
buyers are reported eager for tobacco and it is
stated that probably 75 per cent of the crop,
said to be the largest ever known, has changed
hands. Prices have been on a gradual increase since the opening of the season, now
ranging from $6.50 to $11.50, with some sales
reported as high as $18, and it is believed that
the market will go still higher.
Yellow-pine lumber continues to show a slight
advancing tendency, but the movement is not
at all in keeping with advances in cement,
brick, steel, and other building materials. The
hardwood situation is very satisfactory. Dealers report an increased demand and their expectations are that walnut, oak, and cypress
will soon find higher levels.




JANUARY 1,

1917.

Florida is enjoying a good season in the
winter fruits and vegetables. The following
number of cars have been shipped from Jacksonville, High Springs, and Hampton since the
opening of the season, September 15, to December 19: Grapefruit, 1,849 cars; oranges,
7,733 cars; lettuce, 531 cars; vegetables, 72
cars; potatoes, 11 cars: pineapples, 5 cars; tomatoes, 2 cars.
Reports from Georgia and Florida are to the
effect that a large number of winter tourists
have arrived and that the hotels look forward
to a more prosperous season than for many
years.
There have been a few slight decreases in
prices of commodities but on the whole the
cost of living shows little change. In view of
prevailing conditions a number of the industrial corporations have voluntarily granted increases in wages and this is being reflected in
the general trade. Little changes are reported
in the compensation of the salaried man other
than bonuses given to employees at Christmas
as added compensation.
The New Orleans branch of the Federal Reserve Bank of Atlanta reports as follows:
There has been but slight change in the
banking situation in the past month. Demand
with banks is light and rates are easy. Deposits and clearings continue to increase.
The demand for bonds and high class securities is now greater than ever before recorded
in this section.
For the 11 months of 1916 New Orleans clearings aggregated $1,206,341,922 against the
same period for 1915 of $862,440,150.
The stock of coffee on hand in public warehouses is: Brazil coffee, 242,500 bags; all other
kinds, 45,350 bags.
The coffee afloat from Brazil to reach here
within the next six weeks is 230,000 bags.
The Louisiana sugar crop has been harvested
and, with the exception of only a few sugar
houses, grinding is practically over. The consensus of opinion is that this has been the most
satisfactory year for over a decade, notwithstanding the ill effects of the recent freeze.

JANUARY 1,1917.

FEDEKAL RESERVE BULLETIN.

DISTRICT NO. 7—CHICAGO.

All authorities report a continuation of the
large volume of business. There is no marked
evidence of recession due to the peace rumors
now current. Bank deposits throughout the
district continue to increase and money rates
are still down. Demand for funds is only fair,
especially in big cities, though several country
correspondents report a loaned-up condition in
the banks under their observation. It appears
that the marketing of some products has been
hastened by the high prices prevailing, and this
circumstance no doubt contributes to the continued ease of money.
Shortage of cars is still felt in manufacturing
lines, making it difficult to secure raw material
promptly, and has also held up to some extent
the shipment of grain, as well as other products,
thus affecting some collections. Retailers are
doing a large business due to the usual holiday
buying. No decrease from the high prices of
food and clothing can be noted.
Generally favorable weather for farming prevailed in this district during the past month.
Winter wheat is promising, and there is an increased acreage. Illinois corn has been a disappointment in quantity and of only fairly
good quality; elsewhere no complaint is heard.
Pastures seem to be in splendid condition, due
to the warm weather and rains.
Bond houses look for increased activity in
American securities, due to the decline in demand for foreign obligations. They report this
year as an excellent one in volume and believe
that investors in foreign bonds will incline toward collateral issues.
Agricultural implements.—Volume in this line
has been large generally, though slight curtailment in purchases is mentioned in one quarter
as due to high prices. Price readjustment has
been necessitated by a rapid advance in raw
materials, and this has been a serious handicap.
Long-time commitments in raw materials have
been necessary to insure future delivery. Labor is restless.
Automobiles.—Nothing new has developed in
this line. Volume is apparently satisfactory,




45

considering that the volume of purchases of
automobiles at this time of the year is small.
Coal.—The attractive market for coal has
caused the opening of a number of mines which
had been closed for from one to five years.
The assertion is still made that notwithstanding the insufficient car supply large production
has been maintained, business being away
above normal. One dealer looks for decreased
production for the balance of the month, due
to weather conditions, shortage of equipment,
insufficiency of motive power on railroads on
account of severe weather and usual holiday
shortage of labor. Business is prospering with
unusually satisfactory collections.
Distilling and brewing.—Withdrawals from
bonded warehouses are largest in the history of
the business with sharp advances in whiskies.
Malt companies are so rushed as to be unable
properly to handle business and welcomed recent
break in grain markets resulting in the withholding of orders by some buyers. High prices
of all grains and inferiority of corn will limit
1917 crop. Collections are very satisfactory.
Dry goods.—itetailers report an increase in
business of 20 to 25 per cent and an increase in
stocks of about 40 per cent, but that there is a
general inclination to great conservatism in future purchases. Wholesalers report increased
shipments with orders falling off, partly owing
to large previous commitments on the part of
retailers and partly owing to the feeling that
the top of values has been reached. The disproportionate salary increase of the consumer
compared to the cost of foodstuffs and clothing
is mentioned as a factor likely to induce greater
conservatism in future consumption, although
nothing of the kind is now apparent. Collections are satisfactory, and there is a hopeful
outlook for the future.
Furniture.—On the whole this business is in
excellent condition. Labor conditions are a
shade easier and collections are good. Factories are busy and have a larger amount of
unfilled orders than usual at this time. Excessive values in many lines are still maintained, but there has been no material advance
over last month in this direction.

46

FEDERAL RESERVE BULLETIN.

Grain markets.—Decided reactions in all markets resulted from the recent peace talk, and
future prices will vary with the cessation or
continuance of hostilities. Grain for export
has been retarded, first by car shortage, and
then by lack of ocean tonnage. Corn is moving fairly well, and is in good export demand.
Farmers are eager to market.
Groceries.—In the face of extremely highpriced staples there is no let-up in the consumption. Among the trade there is the feeling that prices have about reached their high
level. Retailers are well stocked up, and buying is at low level, as usual for this time of year.
Car shortage is blamed by some wholesalers for
failure to get certain goods to take care of the
demand. Collections are generally satisfactory.
Hardware.—Volume in this industry is being
well maintained. However, high prices must
eventually restrict volume, say authorities.
The shortage of cars, labor, and raw materials
is making itself felt. Collections are a little
short of satisfactor}^.
LeatJier.—This is the usual slowing-up period
in the leather business, and, as far as new sales
are concerned, the present period is no exception, but orders for immediate delivery are
occupying plants to capacity, and there is good
promise of large future bookings, since finished
leather stocks are low. Continued maintenance of high prices will depend on the foreign
situation. Collections are very good.
Live stock.—Exhibitions at the International
Live Stock Show held recently in Chicago revealed an excellent quality of live stock. The
prize-winning steer sold at auction for $1.75 a
pound, a total of $1,977.50, the highest price
paid for a steer in the history of the industry.
Receipts have been liberal, prices tending downward, and collections are a trifle slower.
Lumber.—Ver}^ little complaint is manifested in this industry. Building operations
compare favorably with past periods. However, comment has been made that comparatively speaking wholesale lumber dealers are
receiving less for their product than is being




JANUARY 1,

1917.

paid for any other staple, while nearly all kinds
of lumber have advanced in price.
Mail order.—Business in this line is reported
to have shown a considerable gain over the
same period last year in District No. 7.
Pianos.—Concerns in this industry are quite
active either with immediate or future orders.
High prices for raw materials and difficulty
in securing same are a serious menace to volume; however, collections in general are good.
Prospects for the coming year are said to be
good.
Steel.—This industry is booked so far into
the future as to be able to disregard any temporary adverse conditions. Business is enormous, with no abatement in sight. Collections
are excellent and prices very high.
Watches and jewelry.—We are told that these
are record days for houses in this line, one
reporting business for November 26 per cent
ahead of a year ago and the first nine days of
December 58 per cent ahead of the corresponding period last year. Goods are selling at high
prices and volume is due to general prosperity.
Wool and woolens.—In this line business continues good with steadily advancing prices
which will continue to increase as long as the
war lasts. Collections are excellent.
Clearings in Chicago for the first 21 days
of December were $1,496,000,000, being
$399,000,000 more than for the corresponding
21 days in December, 1915. Clearings reported by 21 cities in the district outside of
Chicago amounted to $291,000,000 for the first
15 days of December, 1916, as compared with
$193,000,000 for the first 15 days of December,
1915. Deposits in the eight central reserve
city member banks in Chicago were $702,529,000 at the close of business December 20,
1916, and loans were $482,144,000. Deposits
show a decrease of approximately $5,000,000
and loans a decrease of approximately
$2,000,000 over last month.
DISTRICT NO. 8—ST. LOUIS.
The extreme activity of business in this district reported for November has been even

JANUARY 1,1017.

FEDERAL RESEBVE BULLETIN.

greater during the present month. The • increase is apparent in practically all lines, but
particularly in manufacturing, jobbing, and
the wholesale and retail business.
Both wholesale and retail stores had a recordbreaking Christmas business. For some of
them it was the largest in their history. This
is especially true of the wholesale dry goods
houses and the big department stores. Jewelers, both wholesale and retail, are also having
an extremely large business. One of the
largest hardware houses in this district reports
that it has never had a larger business than
this month.
Prices continue very high, but a number of
interests in this district have either increased
wages or given Christmas bonuses to their
employees, so that the high prices have not
yet affected the demand. Active demand
continues for both luxuries and necessities.
Buying, while heavy, still is not generally in
excess of incomes.
Manufacturing concerns are working to capacity, with large orders ahead. Many industries are feeling the effects of the high prices
of raw material, and some are experiencing
difficulty in obtaining a sufficient supply at
any price. Manufacturers of shoes are doing
an extremely large business, but are refusing
to take orders at present prices for delivery
later than 30 days, owing to the unusual condition of the leather market. Further advances in footwear appear unavoidable.
The shortage of cars continues, and while
the condition is slightly improving, yet many
of the manufacturers are hampered in making
deliveries after goods are sold by reason of
their inability to secure proper transportation
facilities.
This district is unquestionably feeling the
effects of the prosperity of its farmers. While
the crops have not been as large this year as
last, yet the returns which the farmer has
received for his products have been greater,
and this has enabled him to pay off his debts
and still have money to spend.




47

According to Government estimates the area
sown in winter wheat this fall throughout the
United States i& 2.3 per cent more than the
area sown in the fall of 1915, the total estimated area sown this fall being 40,090,000
acres, with an increase over last fall of 887,000
acres. However, in this district, while the
acreage sown in winter wheat is large, yet it
is estimated as being a little less than that
sown in the fall of last year. The condition
of the winter wheat in this district is estimated
to be 3.9 per cent below last }^ear and 4.6 per
cent below the 10-year average. Nevertheless,
the weather is seasonable and the recent snowfalls should help the wheat considerably.
The cotton-growing portions of this district
are also in excellent condition. The cotton
growers have not only been blessed with
abundant crops, but have also received exceptionally high prices for their product. On
the whole they have had a most successful
season. The report comes from Louisville that
tobacco is moving in large volume at much
better prices than last year.
The St. Louis National Stock Yards report
that during November, 1916, considerably
more cattle, horses, and mules were shipped
than during the same month last year, but
that a less number of hogs and sheep were
shipped. However, in comparison with the
figures for October of this year the reports
would seem to indicate that there has been a
perceptible slackening in the demand for cattle,
sheep, and horses and mules, with an increase
in the demand for hogs during the past month.
Commission men say that it is becoming difficult to get horses fitting the Army specifications, and that the prices for them are much
higher than they were a year ago.
From report's received from the principal
cities in this district, it appears that building
operations are quite active for this season of
the year. While there has been a slight decrease in the number of permits issued and the
valuation since last month, yet in comparison
with this time last year an increase in the operations is noted.

48

FBDEBAL KESEEVE BULLETIN.

JANUARY 1, 1917..

The postal receipts in St. Louis, Louisville, j a slight hardening of rates. Many of the
and Memphis for November, 1916, show sub- larger institutions are well loaned up in constantial gains over the corresponding months sequence of heavy demands from their correlast year. The postal receipts in Little Rock spondents during the last 30 days. The outlook is generally regarded as favorable and the
show a slight decrease.
The clearings throughout the district show | coming annual meetings will probably disclose
a decided increase. For the week ending De- that the earnings for the year have been encember 9, 1916, the percentages of increase tirely satisfactory. At country points the
over the corresponding week in 1915 were as j banks are in a strong position, and are exfollows: Memphis, 42.7 per cent: St. Louis, j periencing a good demand, with rates prac40.4 per cent; Louisville, 22 per cent; and j tically the same as for some weeks past.
Little Rock, 18.7 per cent.
I Industrial concerns and practically all of
The deposits in all the banks in this district j the manufacturing enterprises of the district
continue at a high level, and money is easy. are enjoying a substantial activity, except as
The rates for money are about the same as the car situation has interfered with their
reported last month. The prevailing rate to j operations. Most concerns have orders ahead
customers in St. Louis is from 4 to 4J per cent, I for the first part of the coming year, and there
and in other sections of the district it is some- are no signs of any recession. Trade at
country points is good, and wholesale and diswhat higher.
tributing lines report an excellent business.
DISTRICT NO. 9—MINNEAPOLIS.
Collections are very good.
Generally favorable conditions during the
Brisk winter weather has stimulated holiday
month are marred only by increasing diffi- trade, and buying is in very substantial
culties resulting from the car shortage and volume, but with an evident disposition on
traffic situation. Many lines of activity are the part of purchasers to exercise caution and
seriously hampered, and because of the neces- conservatism. The condition of trade at
sity of conserving car supply in order to meet country points is substantial evidence of the
the imperative needs of their own territory buying power of the farmers and the degree
the respective northwestern lines are placing to which they have profited by the extremely
increased restrictions upon the movement of high prices for all farm products.
equipment eastward and upon eastbound
Grain prices broke sharply on the midshipments.
December peace talk, and have since shown a
The milling and elevator situation through- considerable fluctuation, although with some
out the entire district is unfavorable, and ter- recovery. From the reports at hand, and other
minal elevators, especially, are not alone con- reliable information, it would appear that the
gested with grain, but are severely handicapped bulk of the 1916 crop, together with a large
by the increasing difficulty of obtaining and proportion of the old wheat held over from
moving cars. This situation coupled with last year, has already moved, the larger part
severe weather during the third week of the of it during the period of high prices.
month caused the slowing down of lines that
Elevator stocks are considerably increased
are dependent upon the car supply. The rail- over a year ago. A considerable amount of
roads have acted promptly and are putting hard southwestern wheat is being brought in
forth every effort to minimize the embarrass- for milling purposes, and the larger milling
ment to shippers, but have had poor results in concerns have been compelled to take the
their efforts to secure the return of equipment position that they will not buy carloads except
now on eastern lines and at Atlantic terminals. in care that can be reloaded with flour and
The demand upon banks at urban centers is mill stuffs. By this process they have been
very satisfactory, and there are indications of able to obtain some relief, although the yards




JANUARY 1,

1917.

FEDERAL RESERVE BULLETIN.

49

are crowded with loads and the mills are filled homa reports an acreage of almost 3,000,000,
to capacity with finished products that can an average decrease for the State of 5 per cent,
not be moved. Some of the larger concerns with growing condition 84 per cent. In spite
have put their mills on part time, with the of transportation difficulties, it is believed that
prospect that they may be compelled to close the amount of wheat hoarded in farmers' bins
down entirely if the situation does not shortly has been materially reduced.
improve.
All live-stock markets of the district were
Business opinion is that the outlook for considerably hampered late in November b}r
1917 is favorable. Most observers agree that | the appearance of a suspected case of foot-andduring the remainder of the winter and the mouth disease in the Kansas City stockyards.
early spring trade should continue in good Last year's epidemic took from Federal and
volume. Favorable spring planting weather State treasuries $9,000,000, in addition to
will be a sufficient guaranty of continued further losses of owners. As a consequence
prosperity during the first half of the coming every precaution was taken. Immediate oryear, especially in view of the fact that the ders were issued prohibiting the shipment of
farmers went into the winter with a much any stock from the Kansas City and St. Joseph
larger amount of work accomplished than in stockyards, except for immediate slaughter.
ordinary years.
Expert observation failing to reveal well-defined symptoms of the disease, the quarantine
DISTRICT NO. 10—KANSAS CITY.
was lifted at the end of November. Beef steer
Latest reports but confirm the increasing prices in that month reached the highest level
commercial records of the year, with no seri- ever known. All classes of killer kinds sold
high, grass-fat cows from the western ranges
ously deterrent features.
The period was generally favorable to agri- selling at prices never obtained before, and
culture and particularly to husking and market- old cows for canning purposes selling especially
ing corn and shipment of live stock, Freezing high for that class. The demand for cattle
temperatures caused immaterial crop damage. to go back to the country continues good, with
Necessary precipitation was lacking in some steady prices. The five weeks ending Decemsections. From the highest temperature ever ber 2 showed a considerable increase of hogs
recorded in Oklahoma early in the month of slaughtered at all packing centers in the disDecember, the middle of that month showed a trict,
severe drop with the lowest temperature in
With flour high in price, bread increasing in
15 years, for this season of the year, reported cost, and milk, butter, eggs and other comfrom Kansas, followed by a heavy snow, in modities steadily increasing, the problem of
limited areas, of much benefit to the wheat.
living has become increasingly serious. There
Considerable interest attaches at this time is every indication of a coal shortage if cold
to the condition and acreage of the winter weather continues, and the price has become
wheat. From State reports available, Kansas almost prohibitive. The situation in Oklais shown to have an acreage of approximately homa is especially threatening, the settlement
9,000,000, or 3 per cent more than seeded a of the coal strike there and the arrival of an
year ago, with an average growing condition of early blizzard having brought a flood of orders
75.9 per cent, which is 12.5 per cent lower than which the mines, reopening after a two weeks7
at this time last year and lower than the shutdown, are unable to fill. The continuDecember condition for each of the past five ance of the car shortage is also having its
years. Nebraska shows an acreage in excess effect.
of 3,000,000, 5 per cent greater than last year,
Retail business continues to show a marked
and a growing condition of 85 per cent. Okla- improvement over the corresponding period of




50

FEDERAL RESERVE BULLETIN.

last year. Merchandise is high and scarce in
manufacturers' hands, but those retailers who
are able to finance themselves are carrying
largo stocks, many having anticipated their
needs in order to save the advances. Clothiers
report an increase, in volume of business of
approximately 25 per cent over last year, and
the favorable weather for hcav}^ merchandise
will doubtless bring further increases. Retail
jewelers report an excellent holiday trade, but
with increased costs and expenses claim about
the same percentage of profits. General mercantile stores are doing the largest volume of
business in their histor}^.
Wholesalers advise that an abnormal volume of business continues, with the outlook for
the next six months very good indeed, but are
slow in prophesying after that period. One of
the largest wholesalers in furniture, carpets,
and house decorations, however, reports that
orders arc being booked from their regular
customers with less success than the corresponding period of last year, claiming that the
country merchant is hesitating to pay tho
advanced prices.
The implement business continues highly
satisfactory, notwithstanding the general advance, orders being placed quite freely, dealers'
stocks having been well cleaned up last year.
The announcement of further advances in this
line has had the direct result of stimulating
contracting.
The flour milling industry has every reason
to view the trend of eastern trade with a
marked degree of satisfaction, even though
ground for entire complacency may be still
lacking. A steady stream of flour has been
flowing eastward from the mills of Kansas,
Oklahoma, Nebraska, and other States have
been contributing their proportion. It is
conceded that more winter wheat flour has
been sent to eastern markets than ever before
in the history of the industr}^
The following table shows, so far as figures
are available, the census statistics on milling
in this district for 1900 and 1909 as compared
with a reliable estimate of the output for the




JANUARY 1, 19.1.7.

crop JQSLY ending June 30, 1916, figures being
in total flour production:
j 1900 census 1909 census
• (barrels). (barrels).

1916
(barrels).

i

Kansas
Nebraska
Oklahoma
Colorado
Western Missouri
Total

i 5 000,000
1,821,000
'
975,000
*
;
:

10,879,000 112,213,447
3,500,000
2,264,000
2,500,000
2,199,000
1,500,000
975,000
3,000,000

'
1

22,713,447

i Exact. Other amounts in this column estimated.

The production for 1916 would have been
increased materially but for the very poor
quality of wheat which mills had to grind.
Current milling conditions in this territory are
exceptionally healthy. The general financial
position of milling enterprises is strong and
millers have never before enjoyed such security
in their credits. The fundamental soundness
of the industry has resulted in such paper
becoming standard in eastern markets, and
local bankers have come to look upon it with
more favor because of their direct knowledge of
the business.
The retail lumber trade continues to enjoy a
volume of business much larger than last year
and beyond expectations. Cement consumption has amounted to about 20 per cent more
than in 1915, and more of this product is selling
than is usual at this time of year, while there is
much more business in prospect for 1917 than
for 1916 at this time-last year. The use of
cement in road building is increasing rapidly.
Engineering and building operations continue
strong. The increase in building permits
issued is a repetition of the increases shown by
months with corresponding months last year.
Collections in all lines are reported on a
parity with sales, and even exceeding them in
many instances.
Advancement in mining in Colorado has
been steady. Production is being resumed in
many long idle districts. The zinc centers are
establishing a new high water mark of production. The big drainage projects are reaping
the reward of industry, and ore from freshly
drained ground is now a material factor in the

JANUARY 1, 1917.

daily production. There have been few new
strikes on the surface this season, but there
have been several ore discoveries in old-time
producers that are important. The first underground concentrating mill in the world will
soon be ready for operation in Ouray County,
Colo., which will end delays caused by snow
slides or deep snows, which have heretofore
hindered operations at this point. The total
value of ore production in the Joplin (KansasOklahoma-Missouri) district has now gone
over the $31,000,000 mark. The increase in
price has again encouraged development work,
and new mines are being frequently opened.
The value of this year's production should go
at least $8,000,000 above last year's. In this
district interest centers in the Miami, Okla.,
fields, where 500 drill rigs are now pounding
day and night in search of new ore. Joplin, the
metropolis of this mining district, is experiencing marked prosperity.
The predicted gradual increase in the price
of crude oil in Kansas and Oklahoma was partly
realized when an advance of 10 cents per barrel
was announced on December 12, and a similar
increase on December 18, crude oil now bringing $1.20 per barrel, with further increases
being freely predicted. Production double
that of 1915, when it amounted to 4,212,000
barrels, is freely predicted for the current year.
The past six months have witnessed much real
progress and development in these fields.
Considering the strained relations between
employers and labor, as evidenced in reports
from various parts of the country, conditions
in this territory may be said to be unusually
satisfactory. Voluntary wage increases and
bonuses are the order of the day and there are
no disturbances worthy of note. Welfare organizations are having less calls for assistance
and less difficulty in administering to the wants
of those in need than usual at this time of the
year.
Taking all things into consideration, railroad earnings can be said to continue satisfactory.




51

FEDERAL RESERVE BULLETIN.

The trend of bank clearings at leading cities
in the district for the month of November, and
for the first eleven months of 191*6, as compared
with the same periods of 1915, continues upward, as indicated by the following percentages
of increase :
City.
Denvcr
Kansas City
Lincoln
Muskogeo
Oklahoma City.
Omaha
Pueblo
St. Joseph
Topeka
Wichita

November.
27.9
33.6
29.1
41.1
82.6
36.8
26.6
30.6
28.6
20.1

Eleven
months.
33.7
28.3
32.0
62.7
69.5
29.5
12.0
31.5
21.0
31.2

Reports of bank deposits and post-office
receipts continue to show remarkable gains.
While there is slight evidence of increased
demand for loanable funds, no material change
has been made in rates of discount. The year
1916 has witnessed a general plethora of loanable funds, everyone has had plenty of work
at good wages, business has thriven, new industries are making rapid strides, and crops,
while below normal in production, have had
greater value than for years, and these conditions are reflected in all the commercial activities of the district.
DISTRICT NO. 11—DALLAS.

Merchants are enjoying a holiday business
almost unprecedented in volume, and, notwithstanding the prices of merchandise are
much higher than those of past years, buying
is unusually heavy. Ideal weather conditions
have prevailed and have contributed to make
the Christmas shopping season active. With
the activity with retailers there is inclined to
be a lull in the wholesale and jobbing business
and the orders now being handled are for the
most part emergency ones and to build up depleted stocks of merchandise, which will doubtless continue until after the new year.
The car situation shows improvement but is
still far from normal. Collections in all lines

52

FEDERAL RESERVE BULLETIN.

JANUARY 1, 1917.

are reported as good or much better than last below the loans and discounts and deposits of
the banks in the reserve cities of Texas on
year.
There is some preparation of land for crops November 10,1915, and on November 17,1916,
the coming year. Reports indicate that with dates'of the comptroller's call, for comparison:
the high prices realized for cotton the past seaIncrease.
son, there will be a tendency to increase the
Nov. 10,1915. | Nov. 17,1916.
acreage. This is a condition which is being
Per
Amount.
cent.
discouraged as much as possible. Winter
wheat is in good condition over most of the
Loans and discounts.. $92,352,000 | 3126,034,000 i $33,682,000
district. Some sections, however, report that Deposits
117,151,000
202,706,000 • 85,555,000
73
rain is badly needed and that there is not suffiThere is also shown the percentages of incient moisture in the ground to bring up winter
crease of deposits for the same period: Dallas,
feed crops. The farmers throughout the rice
belt have enjoyed the most profitable season 84 per cent; Fort Worth, 87 per cent; Galveston,
in 15 years. This has enabled them to liqui- 65 per cent; Houston, 69 per cent; San Antonio,
date their debts and to go into the new crop 52 per cent; Waco, 74 per cent.
The State banks of Texas also show a heavy
year in excellent condition. Reports indicate
increase in deposits for the same period, the
that the acreage planted in rice the coming
season will be materially increased. The rice figures being: November 10,1915, $101,164,854;
yield for the States of Texas, Louisiana, and November 17, 1916, $163,026,267; increase,
Arkansas averaged approximately 11 bags per $61,861,413; per cent increase, 61.
An increase of $45,048,763 is shown in the
acre, which is equivalent to approximately 50
bushels per acre. The crop was marketed at deposits of the State banks on November 17,
1916, over the call of September 12; 1916.
an average price of 93 cents per bushel.
In the extreme southwestern part of the Clearings of the principal cities in the district
district weather conditions have been ideal and for November, 1915 and 1916, and for the eleven
have enabled the uninterrupted harvest of months ending November 30 of the two years,
sugar cane, which has been going along at a are as follows: November, 1915, $180,579,749;
very satisfactory pace for the past three weeks November, 1916, $252,317,732; increase, $71,and which should continue for about six weeks 737,983; per cent increase, 39.
For eleven months ending November 30,
longer.
Financial conditions show no material 1915, $1,553,406,378; November 30, 1916,
change. The comptroller's call of November $1,953,774,173; increase, $400,367,795; per
17 brought out the generally satisfactory condi- cent increase, 26.
There were handled in the district clearing
tion of member banks, and a comparison of
the calls of November 17, this year, with the house for the period November 16, 1916, to
call of November 10, last .year, brings out some December 15, 1916 (25 business days), 318,364
interesting figures. There is still little demand items, aggregating $163,030,885, or a daily
for loanable funds, and outside investments and average of 12,734 items, aggregating $6,~
the purchase of commercial paper and bonds 521,234. For the period, October 16, 1916, to
continue to be sought as a means of employ- November 15, 1916 (25 business days), there
ment for idle funds. There is some evidence were handled 340,952 items, aggregating $175,that banks in the western and southwestern 574,192, or a daily average of 13,638 items,
part of the district are having a rather active aggregating $7,022,967. I t will be seen, theredemand for funds, principally from cattlemen, fore, that there was a slight decrease in the
and that the credit conditions are keeping pace number and amount of items handled in the
with the financial situation. There is shown past 30 days.




JANUARY 1,1917.

FEDEBAL BESEBVE BULLETIN.

Reports indicate some dullness in building
operations. There is shown below the number
and valuation of permits issued in the principal
cities of the district for the month of November,
1916, as compared with November, 1915—
1915: Number, 980; amount, $1,001,291. 1916:
Number, 749: amount, $1,199,018. Increase,
$197,727; per cent increase, 20.
Considering the season of the }rear, manufacturers and dealers in building materials advise
that the volume is satisfactory and better than
in 1915. Reports indicate that demand for
building brick, hollow tile, and fire brick is good
and material manufacturers are satisfied with
the volume. Collections in building lines are
reported as good, and one firm reports that they
will have less loss in accounts than ever before.
Some improvement is reported in the lumber
business from the manufacturers' standpoint.
Prices are around $3 per thousand higher than
three months ago and demand continues good
in spite of the increase in shipments caused by
the improvement in the local car supply. The
shortage of cars in this line is still felt. One
large manufacturer reports that the supply
is probably 90 per cent of normal. Export
buyers of lumber are active and are placing
good orders with the mills.
Reports from the oil fields of Louisiana and
Texas continue to be quite favorable. New
wells are being brought in in territory heretofore undeveloped, and many of the established
companies are making arrangements to do a
great deal of drilling. Authorities consulted
stated that in their opinion the industry in this
district is on a settled basis and there is less
speculation than ever before; that the fields
are being operated in an intelligent manner and
the day of speculation is rapidly passing. New
gas wells are also being opened up. Reports
from the Louisiana fields particularly indicate
the largest producing wells the field has over
known.
The curtailed output of the coal mines has
caused an advance in the price of coal and difficulty is being experienced in obtaining supplies. The threatened strike in the Oklahoma




53

fields and the time consumed in effecting new
contracts with the miners have caused a limited output and advanced prices, which we
understand are better than for several years.
Post office receipts at 8 of the principal cities
of the district show an increase of 19 per cent
for the month of November over similar period
of last year. With two exceptions, the cities
reporting show good increases. With the
immense parcel-post business now being
handled, the post offices in the larger cities
have found it necessary to provide additional
space and put on extra help to care for the same.
The figures are: 1915, $290,410.43; 1916, $346,138.96; increase, $55,728.53; per cent increase,
19.
During the past 30 days the live stock business, both range and market conditions, has
been active and satisfactory. At the Fort
Worth market, the largest in the district, the
heavy receipts of cattle, hogs, and sheep have
been readily absorbed by packers, stockers,
and traders. Only a limited supply of fat
cattle has been received; also limited consignments of grass-fattened cattle from south
Texas. Good prices have obtained for such
live stock at from $7.50 to $7.75 per hundred.
On account of the very high prices of feed,
particularly cotton seed, cake, meal, and hulls,
there is practically no full feeding of cattle in
Texas. Live stock men report that this indicates high prices for fat stock in the early
spring months. The range conditions are generally good except that in some sections, particularly the Panhandle and the far West, reports
are that rain is badly needed. Range cattle
are reported to be in good condition and are
going through the winter in good shape. There
is shown below a statement of the live stock
receipts at the Fort Worth market for November, 1916, and November, 1915, also for the
eleven months of each year ending November
30. Quite a substantial increase is shown-in
each case. Especially is this true as regards
hogs, the receipts showing nearly 100 per cent
increase over last

54

FEDERAL RESERVE BULLETIN.

November.
1916
Cattle
Calves
Hogs
...
Sheep
Horses and mules

108,499
28,604
75,322
16,317
8,351

Jan. 1 to Dec. 1.

1915

1916

88,753
24,309
40,336
12, 748
' 5,583

822,436
157,619
880,464
395,173
71,939

1915
740,070
140,379
422,483
353,740
48,831

_
l

Reports from the sections of the district
where the sheep industry is most important
indicate that the wool has been practically, all
marketed and that there is little trading in
that business at this time. Eeports from
San Angelo indicate that the outlook for the
wool business in the spring is extremely good
and it is anticipated that the price will be the
highest ever paid in that section; that the sheep
are all fat and free from disease and the clip
promises to be an exceedingly large one, free
of dirt and of excellent quality.
There is a temporary lull in wholesale and
jobbing trades due principally to the fact that
holiday orders have been filled and retailers
are busy with that trade. Wholesalers have
already begun to book a few orders for spring
delivery and the outstanding feature has been
the inability to secure stocks of merchandise on
account of the scarcity of raw materials. The
large mail-order houses continue to show a
heavy increase in trade and have been worked
to their capacity.
Passenger traffic is good for this season and
some increase is reported over last year. For
the month of November the interurban lines
enjoyed an increase in business over the same
month a year ago of approximately 18 per
cent. Freight officials report that the car
situation continues serious.
With the exception of changes to be expected
at this season, the labor situation is practically
the same as reported in our previous letter,
and there is no evidence of any large number of
unemployed. In the building trade, as is to be
expected during this part of the year, there is
the usual percentage of men out of work,
which is a condition that will continue until
the spring building activity commences.




JANUARY 1,

1917.

Exports from the port of Galveston for
the month of November, 1916, aggregated
$41,252,024, and for the same period a year
ago the aggregate was $16,767,905, or an
increase of $24,484,119, or 146 per cent. The
principal commodities making up this large
increase are cotton shipped to France, Italy,
Spain, Switzerland, and England; shipments of
spelter to England, and wheat to Belgium.
Exports to Cuba and Mexico in November of
this year have likewise shown substantial increases over the same period a year ago.
Failures in the district from November 16,
1916, to December 15, 1916, were 39, with
liabilities aggregating $258,654. For the similar period of last year they were 52, with
liabilities aggregating $1,000,873.
DISTRICT NO. 12—SAN FRANCISCO.

Notwithstanding adverse weather conditions
during the fall months, when it was impossible
for wheat growers to seed the acreage intended,
there was nevertheless an increased planting of
winter wheat in the Northwestern States over
that of last season, about 2,500,000 acres being
sown. California reports indicate that more
barley is being planted this year than ever
before. The cost of seed is the highest since
1904. Recent rains have been of great value
to all grains.
Frosts which occurred about the middle of
November caused an estimated loss of 5,000
bales of cotton in southern California. The
estimated crop is 60,000 bales. Eecord prices
have been received for cotton.
Prices for citrus fruit for the Christmas market were unusually high and netted the growers
large returns. The shortage of cars has badly
hampered this industry as well as others.
Because of delay in shipment, much fruit was
allowed to remain on the trees in central and
northern California and suffered somewhat
from frosts occurring in the early part of December. Citrus fruit in southern California was
but little damaged.
The demand for apples was not as great this
year as is usual during the preholiday period

JANUARY .1,1917.

FEDERAL RESERVE BULLETIN.

and prices fell off appreciably. Stocks in storage in the Northwest are not as large as they
were a year ago, but the uncertainty in the
market and lack of transportation facilities
have depressed prices.
The bean crop has been shipped and has
netted large returns, due to prices made high
by a shortage in the Eastern crop.
The sugar-beet acreage harvested in this district in 1916 was 25 per cent larger than that
of 1915; the 1916 price averaged about $6 per
ton, compared to $5.40 per ton for 1915. Hawaii's cane-sugar crop for 1917 is estimated at
575,000 to 625,000 tons. The Hawaiian sugar
production during the year ending September
30, 1916, was 593,000 tons. It is estimated
that the United States produces sufficient beet
sugar to supply about one-fourth of the total
consumed by this country; Porto Rico, Hawaii,
and the Philippines supply another fourth in
cane sugar, leaving us dependent upon other
sources for only one-half of our requirements,
amounting to more than 4,000,000 tons per
annum.
Of the 75,000 acres planted to rice in 1916, a
little over 60,000 acres will be harvested, the
remainder having failed to mature. Much
damage was done by early rains and heavy
winds. A few early sales were reported at $1.75
per hundred, but many farmers have preferred
to hold their crop anticipating better prices.
Dairying is becoming of more and more importance each year. In California alone the
value of dairy products for the year ending
September 30, 1916, was over $40,000,000.
This district is at present exporting large
quantities of condensed milk. Due to the fact
that the war has closed other channels, the
United States is shipping condensed milk into
many new markets.
Prices for meat products are higher. For
the first time in many months shipments have
recently been made from Idaho and Nevada to
coast points. Hitherto all meats from Idaho
have been shipped East because of higher
prices.




55

Lumbering has not shown any great change
during the past month. Prices have held firm
except in redwood which declined about $1
per thousand. Some of the sawmills in the
Northwest have been forced to turn away
orders and curtail production on account of
car shortage. There has been a constant accumulation of orders for shipment by rail, the
aggregate on December 12 amounting to
11,831 cars, which is said to be the record
figure for the Pacific Northwest.
Mining in this district continues its extreme
activity. The mineral output of the seven
States composing this district was valued at
over $300,000,000 in 1915 and due to high,
prices for all metals and the increased activity
in this industry, this figure should be largely
exceeded in 1916.
The November petroleum production of
263,209 barrels daily is a decline of 3,311
barrels daily compared with October, while
shipments of 310,008 barrels daily is a new
high record and an average daily increase of
6,356 barrels over October. Crude oil stocks
on November 30 totalled 45,914,181 barrels.
It is estimated that California's petroleum production for 1916 is 93,000,000 barrels, an excess
of more than 2,000,000 barrels over last year.
Consumption, however, aggregates more than
103,000,000 barrels, stored stocks having in
consequence been reduced by more than
10,000,000 barrels. The value of this year's
petroleum production is placed at $49,000,000.
New wells opened during this year have been
twice as many as last year.
Building permits in 19 leading cities of this
district in November, 1916, show an increase
of 8 per cent over" November, 1915, while the
first 11 months of 1916 show an increase of 20
per cent over a corresponding period in 1915.
Clearings for the same cities for November,
1916, show a 40 per cent increase over November of last year. Salt Lake City, Spokane,
and Seattle show the largest percentages of
increase, each showing over 50 per cent
increase.

56

FEDERAL RESERVE BULLETIN.

."IA.VI.-ARY J ,

i::>iT.

Charter rates show little change over those per cent over the last report and 22 per cent
of a month ago. Exports from Pacific coast increase over the corresponding report last
ports for the month of November, 1916, show a year. Total resources of all member banks in
50 per cent increase over November, 1915, while this district are approximately $180,000,000
imports have increased about 25 per cent.
j more than on November 10, 1915, or an inSeven new shipbuilding companies have been \ crease of 20 per cent during the year.
started on the Pacific coast within the past j Because of the war this district has profited
few weeks, two for steel ships and five for | from high prices from many of its products,
wooden ships. Japanese tonnage continues to j such as copper and other metals, live stock,
increase, although constituting a smaller per- | grain, etc. Its industries, however, with an
centage of the total tonnage on the Pacific | occasional notable exception, such as in shipthan a few months ago because of the increase j building, have not been enlivened as in the
in the shipping of other countries, including • East. With a cessation of the stimulus in cerour own.
tain lines from the termination of the war other
Deposits of the 521 national banks in the industries, such as lumbering, should have
twelfth Federal Reserve district at the date counterbalancing increase of activity. It seems
of the last comptroller's call, November 17, ! probable that the transition from a war condiaggregating §857,000,000, show an increase of j tion to one of peace will be marked by mini10 per cent over the September 12 report, and I mum disturbance of the conditions of prosan increase of 27 per cent over a year ago. \ perity now prevailing quite generally throughLoans and discounts show an increase of 6 j out this district.




JANC'AIiY 3, 1917.

FEDERAL RESERVE BULLETIN.

57

DISTRIBUTION OF DISCOUNTED PAPER, I class of paper. The total of trade acceptBY CLASSES, SIZES, AND.MATURITIES, j ances discounted since September, 1915, is
Commercial paper discounted by the Federal $5,986,700, Richmond and Atlanta together
Reserve Banks during November, 1916, totaled reporting over 60 per cent of the total.
Notwithstanding the considerable increase
$17,904,100, compared with $11,862,900 discounted in October, 1916, and $18,269,700 in in amount, the number of bills discounted
November, 1915. Nearly 60 per cent of the during November is about 1,000 below the
November discounts is credited to the Federal October total, the smallest monthly total reReserve Banks of Boston and Philadelphia, ported until then. As a result the average
where some of the leading local banks redis- size of the paper discounted during Novemcounted in some volume during the month ber, about $6,000, is nearly twice as large as
under discussion. Discount operations of the the October average, while like averages for
three southern banks totaled $2,958,700, or a Boston and Philadelphia run in excess of
little over 16 per cent of the total discounts for $24,000. This of course is due to the larger
the month, as against 65 per cent in November, size of the discounts of both customers' paper
1915. Discounts of the Federal Reserve Banks and member banks' collateral notes handled
for the 11 months in 1916 totaled $144,154,200, for the large city banks accommodated by
compared with $145,941,000 for the same these two reserve banks. As a matter of
period in 1915.
fact, 86 per cent of the total November disOf the total discounts for the month counts of the Boston Reserve Bank and about
$5,587,900 is represented by advances to 11 92 per cent of the total discounts of the Philamember banks upon their own notes secured delphia Reserve Bank are represented by
by commercial paper, $1,047,000 by commodity largest-size bills (of over $10,000 each). The
paper, and $828,600 by trade acceptances proportion of the largest-size notes for the
(two-name paper). The aggregate of these system is over 69 per cent, as against 45 per
three classes of paper, discounted at preferen- cent shown for October, 1916, and 22 per cent
tial, i. e., lower than ordinary rates, is for November, 1915. The share of the monthly
$7,463,500, or about 42 per cent of the total discounts of medium-size notes (in denomidiscounts for the month. About 70 per cent nations of over $1,000 to $5,000) is not quite
of all member banks7 collateral notes dis- 17 per cent, as against 31 per cent for the
counted during the month is reported by the month before and 47.5 per cent for November,
Philadelphia and Chicago banks.
1915. Small notes (in amounts up to $250)
Of the total amount of commodity paper constituted over 12 per cent of the total numdiscounted during November by four banks, ber, though only about 0.3 per cent of the
over 84 per cent was handled by Richmond amount of bills diseounted during the month.
and Atlanta, including the New Orleans
The general rule that the larger-size bills
branch. Commodity paper discounted during are of the shorter maturity class is borne out
the first 11 months of the present year totaled by the November discount figures, which indi$15,996,500, of which over 87 per cent was cate that of the total discounts for the month,
cotton paper, handled mostly by the Richmond 42 per cent was 10-day paper, i. e maturing
v
and Atlanta banks. Discounts of trade acwithin 10 days from the date of discount by
ceptances (two-name paper) for the month,
the Federal Reserve Banks. In the case of
$828,600, were larger than for any previous
month since the special rates for this class of the Philadelphia and Boston banks these
paper first became effective in September, shares are as high as 62 and 69 per cent. The
1915. Boston, and New York for the first share of 30-day paper was 33.4 per cent; that
time report discounts in some volume of this of 60-day paper 9.1 per cent, and that of 90-




58

FEDERAL RESERVE BULLETIN.

day paper 10.6 per cent. November discounts of agricultural and live-stock paper
maturing after 90 days at the time of rediscount .with the Federal Reserve Banks (6month paper) totaled $884,900, Richmond
Chicago, and Minneapolis together taking
nearly 75 per cent of this class of paper.
On the last Friday of the month the banks
held a total of $20,499,600 of discounted paper, as against $21,130,700 shown about the
end of October and $32,794,300 on the corresponding date in 1915. Less than 33 per
cent, as against over 62 per cent on November
26, 1915, is represented by the holdings of the
three Southern banks.
Commercial

paper,

exclusive of bankers'

JANUARY 1,1917.

Of the 7,628 member banks, reported at the.
end of November, only 336, or less than 5 per
cent, are shown to have rediscounted during
the month with Federal Reserve Banks. The
largest number for the month, just as for
October, is reported by the Chicago district,
where a considerable number of banks in the
country districts, mainly in Iowa, is being
accommodated through the discount of farmers' paper. The number of rediscounting
banks in the three Southern districts was 104
for November, compared with 159 the month
before and 438 for November, 1915. Dallas
reports the smallest number of member banks
accommodated during the month.

acceptances, discounted by each Federal Reserve Bank
November, 1916, distributed by sizes.

during

the month

of

NUMBER OF PIECES AND AMOUNTS.
[In thousands of dollars.]
Over
Over voKjyj w e t OX,VAJ
To $100. $100 to Over $250 v v u i $500 Over $1,000 Over $2,500 Over $5,000
to $500. to $1,000. to $2,500. to $5,000. to $10,000.
$250.

Over
$10,000.

Total.

Per cent.

Banks.
B%

s
Boston
New York.
Philadelphia
Cleveland
Richmond
Atlanta, including New
Orleans branch
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total.

0.2

39

2.5
1.3
3.7
4.6
9.7

2.5
4.4!
9.9
2.0
36.9

5.5
10319.0
2
31
1

m
2*

B

25.7
65.6
2.2|
21.9
9.5

7l! 57.1
189| 150.3
19 14.0
82, 56.9
41 28.9
3! 2.7
21 1.6
.5

34.4
27.5
25.0
18.1
217.1

316.1
29.1
110.0
18.0
445.5

567.6
75.2
106.0
30.0
279.1

5,931.3
568.3
3,140.0
25.1
357.0

283 6,865.6 9.5 38.3 $24,260
79 715.3 2.6 4.0 9,050
140 3,415.0 4.7 19.1 24,390
81 106.0 2.7 .6 1,310
587 1,463.1 19.7 8.2 2,490

133.5
312.5
57.5
146.2
70.9
27.1
44.0

13! 11. 21
121 9. 5; 18
26! 20. 14
4i
14; 7. 3j 9
150117. 2 127

303.1
302.4
97.8
97.8
41.2
63.8
67.6

248. 8
120.6
176.4
37.3
40.4
52.0
68.0

1,062.1
664.4
35.3
20.0
11.2

381 1,338.8 12.8 7.5
780 2,036.4 26.1 11.4
111, 1,012.8 3.7 5.7
308
401.3 10.3 2.2
137
211.3 4.6 1.2
.8
44
156.8 1.5
54
181.7 1.8 1.0

3,510
2,610
9,120
1,300
1,540
3,560
3,360

100.0 100.0 6,000
2:476.9 6651,113.8 4661,892.4 21lil,801.4 200 12,378.6 2,985 17,904.1

78 7.1 290 52.8j 453 181.1

PERCENTAGES OF AMOUNTS OF EACH CLASS TO TOTAL.
Banks.

To $100.

Over $100
to S250.

Over $250
to $500.

°1
43

0.6
.3
19
2.5
19
3.2
2
55

Over $500 Over $1,000 Over $2,500 Over $5,000
to $5,000. to $10,000.
to $1,000.
to $2,500.

Over
$10,000.

Total.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta.
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total




6.8

•i2

.6
4
.9

i 4
.1

4.5

"
.3

02
1.3
.6
69
8.0
43
7.4
14
14 2
13.7
17

.3

.9

1.0

17

86.4
79.4
92.0
23.7
24.4
42 1
52.1
65 6

05
3.8
.7
17 1
14.8
10 0
15.4
57
36 4
33.6
17 3
24.2

46
4.1
3.2
17 0
30.3
22 6
14.9
96
24 4
19.5
40 7
37.2

19.1
33.2
37.4

9.4
7.1

6.2

10.6

10.1

69.1

8.3

10.6
3.1
28 3
19.0
18 6
5.9
17 5
9.3

8.8

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

59

FEDERAL RESERVE BULLETIN.

JANUARY 1,1917.

Commercial paper discounted during November, 1916, by each Federal Reserve Bank, distributed by States and maturities
as of date of discount.
[In thousands of dollars.]
Maturities
Number Number
of banks
of
member accom- Within
banks. modated. 10 days.

Districts and States.

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

10.0

23.0
7.3
10.5

351.3
9.8
G, 487.1

211.1

6,865.6

20.9
80.4

4.2
236.0

4.7

74.6
64.0.7

101.3

1,762.3

205.0
2.5
3.6

45.8

113.3

4,710.7

240.2

4.7

715.3

50
67
158
56
17
48

2

8.5

3.9

5.0

19

4,729.2

1,879.5

15
129
481

4
7

.3

49.2
319.6

625

Total

2
1
14

402

.

Total

cial paper
From 11 From 31 From 61
After
disto 60
to 90
to 30
90 days. counted.
days.
days.
days.

11

.3

17.4

i

District No. 2—New York:
Connecticut
New Jersey
New York

.

Total
District No. 3—Philadelphia:
Delaware
New Jersey
Pennsylvania

368.8

j

24
72
535

4
8

29.4
2,092.5

53.5
1,220.1

3.5
5.7

10.3

86.4
3,328.6

631

12

2,121.9

1,273.6

9.2

10.3

3,415.0

68
374
299
13

2
9
1

2.5

32.7
5.0

13.2
11.8

4.0
30.5

6.3

17.2
83.8
5.0

754

12

2.5

37.7

25.0

34.5

6.3

106.0

15
96
81
79
146
103

16
20
3
2

6.9
14.1

114.6
227.9
17.6

205.2
170.0
14.0
19.2

236.6
194.7
15.5
15.4

202.0
9.4

765.3
616.1
47.1
34.6

520

41

21.0

360.1

408.4

462.2

211.4

1,463.1

93
55
110
21
18
92

18
10
12

37.4

208.8
118.4
33.2

81.5
51.1
71.5

224.6
38.0
182.8

7.5
4.2

559.8
211.7
287.5

4
11

42.8

87.2
25.4

8.7
44.9

3.4
47.8

19.6

142.1
137.7

389

55

80.2

473.0

257.7

496.6

31.3

1,338.8

18
7
57
2

12.5
23.3
1.0
9.7

1,090.5
18.2
167.8
15.2

93.4
16.7
196.7
21 3

3S6
6.4
103.0
1.3

43.9
2.7
174.2

Wisconsin

316
196
353
76
52

1,278.9
67.3
642.7
47 5

Total

993

84

46.5

1,291.7

328.1

149.3

220.8

Total
District No. 4-Cleveland:
Kentucky
Ohio

P ennsy Ivan ia
West Virginia

.'...

Total
District No. 5—Richmond:
District of Columbia
Marvland
North Carolina
South Carolina

.

.

Virginia .

West Virginia
Total

District No. 6—Atlanta:
Alabama
Florida
Georgia

„
.

.

Mississippi

. ..

Tennessee
Total

District No. 7—Chicago:
Illinois
Indiana
Iowa
Michigan

District No. 8—St. Louis:
Ark&ns&s
Illinois
Indiana
Kentuokv

:

425.8

Tennessee

8
3
5
2
4
3

79.0

206.6

61.8
23.0
9.6
21.7
5.8
66.2

Total

470

25

504.8

219.8

188.1




2,036.4
i

67
157
61
67
18
80
20

Mississippi
Missouri

m

3.5
2.2
7.5

; • ; *

13.2
42.3
2.8

2.1
1.8

34.9

1 5

93.2

6.9

80.0
69.6
440 0
29.2
42 2
351.8
1,012.8

60

JANUARY 1,1917.

FEDERAL RESERVE BULLETIN.

Commercial paper discounted during November, 1916, by each Federal Reserve Bank, distributed by States and maturities
as of date of discount—Continued.
Maturities
Number Number
of banks
of
member accomWithin
banks. modated. 10 days.

Districts and States.

From 11
to 30
days.

Total

From 31 F r o m 61
to 60
to 90
days.
days.

cial paper
After
90 days.

counted.

District No. 9—Minneapolis:
32
285
76
155
125
88

23

67.7

135.7

241 3

33,4

28.7

33.7
50.2

44 7
112.3
3.0

14.6

101.9

55.4

219. 6

401.3

1
4
3
9
0
3
0

10.0
1.8
2.1
26.1

37.8
2.8
15.2

11.1
59
22.7

16.6
99
39.9

.1

3.3

6.0

9.4

20

40.0

55.9

43.0

72.4

211. 3

6
11
28
33
543

2

9.1

13.7

33.5

50.3

6

ii.3

14.0

75.2

100. 5

621

.

26 7

941

Minnesota •
Montana
North Dakota
South Dakota
Wisconsin

8

11.3

23.1

13.7

108.7

150. S

7.6

49.5

67. i

2.7

130 ;}

2

6.0

10.0

16 0

i

26.1

9.3

35.4

81.6

86. 4

.

.

.1

Total
District No. 10—Kansas City:
Colorado
Kansas
Missouri
Nebraska
New Mexico
Oklahoma
Wyoming

.

-

. . . . . .
•

- -

--

Total
District No. 11—Dallas:
Arizona.
IjOiiisia,n9,
NGW "Mpvico
Oklahoma
Texas

. - -

--

Total
District No. 12—San Francisco:
A laska
\rizona*.
California
Idaho
Nevada,
Oregon
Utah
Washington

38

1
7
262
58
10
82
23
78

*

521

Total

.4

9.8

122
222
54
194
9
304
36

ii.2

9.8

761

»

6
8
1

Q

3.0

4.0

8

li

4.0 j

7.0

2.7

10
67
20
103

0
?
>
7
9

181. 7

"ItECAPITULATION.
[In thousands of dollars.]

Number
of
member
banks.

Districts and cities.

No. 1—Boston
No. 2—Now i'ork
No. 3—Philadelphia
2s o. 4—Cleveland
No. .">—'Richmond
No. 6— A.tlanta.
No. 7—Chicago
No- 8—Sr. Louis
No. 9—Minneapolis
No. 10—'Kansas Citv
No. 11—Dallas
No. 12—Sail Frajiclsco

Total for J a n u a r y - N o v e m b e r , 1915. -




45.8
101.3
9.2
25.0
408.4
257.7
328.1
188.1
101.9
55.9

4.0

l,879.o
36S. 8
1.273.6
37.7
360.1
473.0
1,291.7
219.8
14.6
40.0
11.3
7.0

336 j 7,520. 2
42.0

5,977.1
33.4

402
625
03 i
754
520
889
993
470
761
941
621
521

[

4,729.2
.3
2,121.9
2.5
21.0
80. 2
46.5
504.8
9.8

'628

-

Total for Novemberi'ercent
Total for J a n u a r y - N o v e m b e r , 1916

Maturities.
Number |
of banks j accom- | W i t h i n From 11 F r o m 31 I F r o m 61
>n
modated-i 10 days. to 30 days. to 60 days. to 90 days.
90 days,
i

22, 7-10. 4

81.6

211.1
210.2
10.8
34.5
4.62.2
496.6
149.3
- 93.2
55.4
43.0
13.7
80.4

6.3 '
211.4 i
31.3 :
220. S :
6.9 !
219.6 i
72.4 |
108.7 ;
2.7 !

1.626.1
9.1

1,895.8
10.6

184.9 i
4.9 !

23.1

34, 752 5 \ 31,682. 8 38.601. S

:'i3,683.r>

I
Total
; commercial
Por cent.
; paper
^counted.

I r>2,7fio.S

52,061.7

4.7

6,865.6
715.3
3,415.0
106. 0
1,463.1
1,338 8
2,036.4
1,012.8
401.3
211.3
156.8
181. 7
17,904.1

16,373.7 | 144,154.2
17,-130.0 j 145,941.0

38.3
4.0
19.1
• .6
8.1
7.5
11.4
5. 7
2.2
1.2
.9
1.0
100.0
100.0

61

FEDERAL RESERVE BULLETIN.

JANUARY 1,1917.

Member banks' collateral notes discounted by each Federal Reserve Bank from Sept. 11, 1916, date vjhen first special rate
became effective, to Oct. 31, 1916.
Total September• N o J g j j f er» November,
1916.

Federal Reserve Bank.

Total SepNovember, tember1916.
November,
1916.

Federal Reserve Bank.

I

Boston
New York
Philadelphia
Cleveland
:
Richmond
Atlanta (including New Orleans branch)
Chicago

i

8340,000
330,000
! 3,032,500
15,000
j
180,000
•
120,000
! 1,082,600

§655,000
455,000
3,277.500 !
385,000 j
1,056,000
722,350
1.175,000 !

St. L o u i s . . .
Minneapolis
Kansas City
Dallas
..

§435,000
12,800
30,000
10,000

35635,000
512,800
30,000
230,000

Total.

5,587,900

9,133,650

Trade acceptances discounted by each Federal Reserve Bank from Sept. 12, 1915, date of first discount, to Nov. 30, 1916.

Federal Reserve Bank.

Total to
Dec. 31,
19.15.

Total
for first
11 months
in 1910.

November,
1916.

Boston
New York
So,700
Philadelphia
Cleveland
4,900
Richmond
450,500
Atlanta (including New Orleans
branch)
| 1,007,100
Chicago

6265,400 j

161,000 !
1,000
3,700
154,000
179,000
•I

Federal Reserve Bank.

8315,300
166,600

St. Louis
Minneapolis...
Kansas City...
173,800 Dallas
1,288,400 ! San Francisco.

$167,800

Total
November, for first
11 months
1916.
in 1916.
567,200
600
190,900
248,900
53,400

850,400

87,800
160,800
74,200

Total..

14,100

1,958,800 i

66,600 j

948,000
8,200

Total to
Dec. 31,
1915.

828,600 I

4,027,900

i

Commodity paper discounted by each Federal Reserve Bank from Sept. 8, 1915, date of first discount, to Nov. 30, 1916.

November,
1916.

Richmond
Atlanta (including New Orleans
branch)
St. Louis
Minneapolis

Total
for first
11 months
in 1916.

8343,200

Federal Reserve Bank.

86,788,600

539,400
129,000

7,106,900
1,348,000
19,800

82,881,400
7,032,300
99,800
9.-» mo !
^300 I

Federal Reserve Bank.

Kansas City...
Dallas
San Francisco.

Total to
Dec. 31,
1915.

Total
November, for first
1916.
11 months
in 1916.

835,400

8360,000
225,200
148,000

10,315,100 ! 1,047,000

15,996,500

8239,100 I
37,200 |

Total-

Commodity paper discounted by each Federal Reserve Bank during the 11 months ending Nov. 30,1916, distributed by classes.
1
1
Class.

Atlanta
(including
New Orleans
branch).

Richmond.

Beans

•

Coffee
Cotton
....
Cotton seed

86,742,900

Total

.

140,000
400

. . .

Kansas
City.

Dallas.

8360,000

6', 100

6,788,600 ; 7,106,900

1,348,000

7,000

274,000

16 S00




1

148,000

15,996,500

8300

?3 666

6,000

4,600

19,800

Total.

8500
6,800
125,000
13,957,100
9,500
3,000
140,000
400
64,200
2,900
36,200
380,500
47,100
5,000
7,600
902,000
308,700

64,200

41,100

. . . .

San Francisco.

5,000
7,600
26,400
24,000

^S218,200

2,900
29 200

...
.

Minneapolis.

£;~ofi

6 800
125 000
5,921,700 81,074,000
9 500

viax

Flour
Hav-.
...
Hops
Maize
Oats
.
Oil
Peanuts
Prunes
....
Raisins
Wheat
Miscellaneous

St. Louis.

360,000

225,200 |

20,500

62

FEDERAL RESERVE BULLETIN.

JANUARY 1.1917.

Amounts of discounted paper held by each Federal Reserve Bank on Nov. 24, 1916, distributed by maturities.
Maturities.
Federal Reserve Bank.

Boston
New York
Philadelphia...,
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City...
Dallas
San Francisco.
Total.
Per cent
Amounts held on Nov. 26,1915..
Per cent




|
i

Within 10
days.

11 to 30
days.

!

31 to 60 I 61 to 90
days. I days.

,801,500
343,100
896,100
42,200
550,500
513,000
414.600
394,600
273,800
82,000
349,300
38,000

5863,400
273,400
170,700
62,400
752,600
708,000
•1,648,900
984,900
240,400
181,800
248,900
83,500

825,200
125,600
22,100
97,500 .
1,087,100
1,001,000
977,200
807,400
324,800
208,200
380,000
147,900

5,696,700
27.8

6,218,900
30.3

5,201,000
25.4

1,914,000
9.3

5,173.0
15.8

7,593.2
23.1

11,509.9
35.1

5,038.1
15.4

§92,500
229,600
5,600
32,900
292,700
438,000
251,600
131,400
107,100
104,000
154,200
70,800

Total.

Per cent,

After 90
days..
§2,782,600
972,100
1,094,500
244,700
2,695,000
2,713,000
3,873,700
2,335,900
1,288,200
768,500
1,389,000
342,400

13.6
4.7
S.b
1.2
13.1
13.2
18.9
11.4
6.3
3.8
6.8
1.7

1,466,000 I 20,499,600
7.2;
100.0

100. C

S400
9,700
12,100
52,400
581,400
14,600
342,100
192,500
256,600
4,200

3,480.1 j
10.6 ;

32.794.3
100.0

,1917.

63

FEDERAL RESERVE BULLETIN.

ACCEPTANCES.
Acceptances bought in open market and held by Federal Reserve Banks as per schedules on file on dates specified, distributed
by classes of accepting institutions.
[In thousands of dollars].
I

Bankers' acceptances.
Trade

Nonmember banks.
Date

-

Member
banks.

:

!

Total

Date.
Total.

market.1

| banks. I banks.
1915.
Feb. 22
Apr. 5
MayS
June?
July 3
Aug. 2
Sept. 6
Oct. 4
Nov.l
Dec. 6
1916.
Jan. 3
Jan. 10
Jan. 17
Jan. 24.
Jan. 31
Feb. 7
Feb. 14
Feb. 2 1 . . . .
Feb. 28....
Mar. 6
Mar. 13....
Mar. 20....
Mar. 27....
Apr. 3
Apr. 10
Apr. 17,...
Apr. 24
Mavl
May8
Mavl5....

!
'
'
!
'
|
!
i
1

!
93 |
3,653 i
5,038 '
5,242 •
4,342 j
»,3oO
6,087 \
9,000 !
8,477
12,311

| 15,494
.1 16,492
.1 16,908
.' 16,348
.! 15,834
.! 15,681
J 17,581
.i 17,661
.j 17,436
. 17,182
J 20,323
:• 20,563
.j 21.128
.; 21,000
.! 22,239
-! 22,135
J 23,566 .
.i 24,875 !
.! 25,058 !
.j 26,633 i

7,820 •

10 |
10
10 '

110
110
192
161
352
472
343
204
396

! 11,593
' 13,347
•
i 9,960
i 9,770
: 11,129
i 12,884
i 14,373
' 13,265
. 18,154
'

8,189 :
4,516
5,267 '
5,407
6,305
4,898
4,331
5,172

20
20
132
253
275

7,160
8,057
7,655
8,070
8,174
7,876
7,985
8,194
8,755
8,670
10,032
11,280
12,864
13,573
14,804
15,028
15.196
15,400
15,750
15,372

362
822 j 23,838
938 : 25,857
370
1,010 ; 25 998
425
363 1.441 ; 26,222
356 1,510 ' 25,874
336 1,456 : 25,349
;
347 1,851 ! 27,764
392 1,841 28,088
1,841 ! 28,440
408
408 1,781 i 28,041
470 1,631 | 32,456
408 2,467 34,718
411 3,078 37,481
473 3,262 38,308
476 | 3,405 ' 40,984
564 3.442 j 41,169
584 3,504 ! 42,850
585 3,430 j 44,290
671 3,493 i 44,972
773 4,960 I 47,738




Bankers' acceptances.

:

1918.
May 22..
May 29..
June 5...
~>,960
Juno 12..
9,770 '• June 19...
11,129
June 20...
1 2 , 8 8 4 ••• July 3 . . . .
14,373 ', July 10...
i 13,265 July 17...
. 18,154 '. July 24...
July 3 1 . . .
Aug. 7....
., 23,838 : Aug. 14....
,; 25,857 i Aug. 21...
180 • 26,178 | Aug. 28...
180 : 26,402 Sept. 4 . . .
180 ! 27,054 ' Sept. 1 1 . .
489 ! 25,838 • Sept. 18..
528 ! 28,292 • Sept. 25..
460 ! 28,548 ! Oct. 2 . . . .
460 ! 28,900 I Oct. 9 . . . .
462 I 28,503 I Oct. 16...
546 ' 33,002 . Oct. 2 3 . . .
678 i 35,396 : Oct. 30...
629 : 38,110 !j Nov. 6....
722 39,030 Nov. 13..
874 . 41,858 ! Nov. 20...
1,321 I 42,490 ' Nov. 27..
1,438 ! 44,288 j Dec. 4...,
1,477 I 45,767 ;i Dec. 11...
1,518 46,490 . Dec. 18...
1,635 49,373 i
93
11,593
13,347

'

Nonmember banks.

i M e m - ii ber !
i banks. '

.!
.j
.•
.'
:
.

26,639
26,104
24,680
27,354 1
32,011 i
33,155 !

.'
.!
J
.1
.j
.i
..
J
.|
.,
.!
.1
.!
.!
.j
.':
.!

34,144 |
40,497 i
41,514
41,395
39,695 1
41,536 i
43,058 j
43,061 •
'
41,413
39,766
42,533
40,309
37,798
36,957
37,655
39,694
37,993

J 37,770
.! 39,494
.
.! 43,173
.
,! 46,118
.
..i 47,748
.1 55,071
. . 01,029
.

16,490
16,541
17,029
19-, 209
19,490
18,722
18,921
20,201
22,309
22,327
21,437
19,060
18,144
19,849
20,716
20,356
20,747
22,105
22,636
21,782
23,195
23,684
26,281
27,951
29,474
28,434
31,237
32,527
33,232
35', 466
36,220

690
690
644
622
560
552
471
620
593
610
724
738
754
736
734
726
760
743
711
712
705
784
867
733
1,014
1,383
1,670
1,704
1,630
1,635
1,514

6,038 49,857
5,895 49,230
7,007 49,360
7,865 55,050
9,067 61,128
11,009
11,830 I 64,211
11,827 I 66,792
13,193 ! 76,592
12,977 i 77,428
13,619 ' 77,175
.
13,940 I 73,433
13,443 i 73,877
12,623 i 76,266
12,673 1 77,184
12,491 1 74,986
11,531 1 72,847
11,443 ! 76,824
10,795 j 74,451
9,944 ! 70,236
10,251 1 71,108
10,230 I 72,353
10,718 ! 77,560
11,829 ! 78,506
12,147 1 80,405
12,802 1 82,113
13,854 1 89,934
14,636 : 94,985
16,069 ! 98,679
17,291 110,063
17,349 .116,112

51,863
51,267
51.568
2,310 57,360
2,054 63,182
1,958 I 65,396
3,422 ! 67,633
3,052 i 69,844
3,685 i 80,277
3,651 j 81,079
3,722 I 80,897
4,225 I 77,658
4,387 i 78,264
3,748 I 80,014
i
3,815 1 80,999
3,673 78,659
2,676 ! 75,523
2,673 i 79,497
2,796 ! 77,247
2,306 ! 72,542
2,048 ! 73,156
1,897 I 74,250
1,723 i 79,283
2,468 ! 80,974
2,378 ! 82,783
3,425 ! 85,538
3,721 ! 93,655
3,979 i 98,964
4,487 i103,166
4,890 i114,959
4,634 1120,746
i

64

FEDERAL RESERVE BULLETIN.

JANUARY 1,1917.

Amounts of acceptances held by each Federal Reserve Bank at close of business on Fridays, Dec. 1 to Dec. 22,1916, distributed
by maturities.
[In thousands of dollars.]

i
Acceptances maturing—

Within 10 days:
Dcc.l
Dec. 8
Dec. 15
•.
Dec. 22
From 11 to 30 days:
Peel
Dec. 8
Dec. 15
Dec. 22
From 31 to 60 days:
Dec.l
Dec. 8
Dec. 15
Dec. 22
From 61 days to 3 months:
Dec.l...'
Dec. 8
Dec. 15
Dec. 22....J
Total acceptances held:
Dec.l
Dec. 8
Dec. 15
Dec. 22

!
St.
Louis.

I Boston.' New I Phila- | CleveYork. delphia.j land.

| 1,761
2,915
; 1,845 ! 4,106

1,590
2.328
1, 788
1,785

I
I
i
j

1,284
953
. 332 |
608

762
1,250
624
749

I
I
I
i

38
230
281
385

4,256
4,841
5.329
5,829

•
i
!
!

1,038
2,031
2,828
3,074

1,425
1,533
2,021
1,671

j
i
!
I

800
1,203
1,129
1,146

5,068 . 16,940
5,628 | 15,223

4,665
3,408
4,671 I 3,4.06
4,466 | 3,352
3,883 \ 3,281

2,433
2,304
2,398
2,289

I
!
1
i

1,562
1,530
1,786
1,880

5,893
4,979
3,907
3,415

10,419
10,582
10,161
10,484

2,825 j 1,475
2,976 ! 2,059
2,777 I 2.289
2, '112 i 2/787

366
557
921
1.298 I 1.642 574
l',780 ! 2,552
957
2,279 I 2,628 1,859

14,232 ! 36,680
11,873 41,386
10,617 ! 42,084
10,947 i 41.510

!

13,336
7,205
14, 816
8,449
14,361 ! 8.801
13,909 ! 9', 750

141 : 2,601
40S I 3,916

!
|
I 2,00-1 ; 6,999
i
880 I 9,602
' 1,501 '. 12,322
! 1,496 ' 11,887
i
!

4,574 ' 16,347

i 4,189 I 17,096

!
;
!
I

5,511
6,385
6,823
6,988

i
I
•
j

135 j
100 I
266 i
356
792
1,278
1,118

i
j
I
;

'i

Total

980 I 11,008
333 i
167; 1,104 i 13,682
8,717
19 ! 1,434 j
58 1 1,026 j 11,678
29 |
59
368 I
481 |

953 i
561
991
899;
889 I 1,183
832 I 1,060
370
418
344
437

2,957
1,810 •
4,605 I 2,365 !
5.748
3,301 i
6.039
4,075 ;

i

Distribution

j San
Kansas! Dallas. | Fran1
Cisco.

Minneapolis.

2,653
3,935
3,871
3,802

j
I
'
!

23,434
29,851
37,308
36,503

6,126 j 45,784
4,621 : 45,185
5,102
47,032
4,710
44,184
1,161
26,380
2,990 i 31,064
2,538 I 29,860
2,910 I 32,268

1,293 10,920
1,635 12,650
1,914 ! 12,945
2,036 12,448

106,606
119, 782
122;918
124,633

!

by maturities of acceptances bought in open market by each Federal Reserve Bank during the calendar year 1915
and the first 11 months of 1916.
[In thousands of dollars.]

Acceptances maturing-

New
Boston. York.

Philadelphia.

1,246
4,728
2,038
1,477
317
155
955

695
4,552
754
983
634
231
1,171

Atlanta !
Cleve- I Kich- ^ ^ ' C h i c a land. I mond. Odians! 6°branch).;

!

I

|
'
|
St. I Minne-1 Kansas!
| ^ u i s . , apolis. | City, j
•,
!
»

San
Francisco.

Total,. •

for
system.

-IWithin 30 days:
Calendar year, 1915
6 months ending June, 1916...
July, 1916
August, 1916
September, 1916
October, 1916.. *
November, 1916
Total for 11 months, 1916
After 30 but within 60 days:
Calendar year, 1915
6 months ending June, 1916...
July, 1916
August, 1916
September, 1916
October,1916
November, 1916

497
350
191
163

482
1,186

9,670 I 8,325

2,137
1,433
4
87
723
100
1UU
1,943

2,377
5,063
1,169
1,101
1,227
1,233
L,JL56

1,464
4,016
739
609
1,934
1,750
1 , YOU

3,823 \

1,223

Total for 11 months, 1916
4,290 I 13,616 10,271
After 60 days, but within 3 months:
11,471 22,211 5,406
Calendar year, 1915
24,049 34,435 10,959
6 months ending June, 1916
1,391 11,161 3,556
July, 1916
"
4,062 5,508 2,069
August, 1916
3,787 6,940 4,023
September, 1916
;.
2,180 10,405 3,981
October, 1916
6,205 13,842 3,276
November, 1916
Total for 11 months, 1916.... i 41,674
Total acceptances bought:
|
I
!
Calendar year, 1915
14,105 |
6 months ending June, 1916
25,832
July, 1916
! 1,395
August, 1916
1 4,340
September, 1916
: 4,673
October, 1916
! 2,280
November, 1916
8,630

82,291
7,565
25,834
44,226 19,527
14,368 5,049
8,086 3,661
8,484 6,591
11,793 5,962
18,620 5,670

101
322
402
41
20

579 j
905
400
! 1,781

156 ; 103
133 ..
71
480 '

617 '

300 i..
402 1

50
28 I

149
227

57 •
'

250

1,538 i 1,315

790 I 3,915
746
1,267
406
855
489
846
550

961
62
46
749
375
16

4,413

2,855
1,257
2,278
2,344
2,173

.
'
!
;
j
i

816
1,840
849
250
362
871
90 j 148
590 !
33

i
,
!
i
I

46 4,810 !
2,1265.389 I
404 1,948 I
666 1.390 ;
297 '
•
1,190 1,696 !
585 ' 1,977 2,772 j
102 i
979 1,689 !

2,963 !
7,061 j
3,663 "
2,153
2,787
3,190
2,728

250
1,540
1,205
446
2,827
960
308

,

:

i
I
'
I
I

7,342
72
2,657
412
916
2,146
2,320
1,967

7,346 ; 10,418

65 I

94

191 I
630
69 !
216
299
338
392

183
459

4,103 i 3,568 j

250 !
I
238 !

16,379 j 1,222 j

71
374
1,151
294
382
887
441
413

19
261

2,209 ' 1,5

2,116
5,472 ;

Total for 11 m o n t h s , 1916... .j 47,150 |105,577 j 46,460 1 21,582 I




7 i
270 '

398 ,

1
!
i

1,324
4,321
2,036
1,335
1,561
1,781
1,578

14,884 I 12,612

5,782
7,362
3,277
1,752
2,867
2,920
2,124
20,302

1,801 |
5,472 I
2,401 j
1 717 '
2,448
2,222
1,991
; 16,251

1,944

2,980
11,553
4,805
3,719
4,118
717
2f|
4,413
750 !

61 j
539
152 I
468

426

1,930

311
187
138
27

358
34

9,057
750
2,299 I 19,380
619 ! 4,219
4,978
759
8,179
474
6,826
1,009
9,431
387

1,122 I

392

5,547

53,013

500

2,419
5,847
2,628
1,349
2,068
4,981
2,814

52,808
96,733
27,479
19,750
24,790
33,351
34,723

1,536
1,219
2,500
1,635
1,262 I
827 i
787
702
248
1,035
942
,1,052
608

405

7,378

4,220 I

1,455
3,151
1,334
1,053
- —
1,032
1,373
1,444

1,788
2,103

*o6"

1,098
463
1,137
635

649
227
726
439

9,387 j 5,436

1,273

29,325

19,687 j 236,826
3,230 64,845
8,085 127,666
3,399 36,503
2,576 28,447
2,542 37,087
6,011 40,894
3,951 48,567

2,091 27,164 I 319,164

65

FEDERAL EESEEVE BULLETIN.

JANUARY 1, 1917.

Amount of short-term investments {municipal warrants) held by each Federal Reserve Bank at close of buisness on Fridays
Dec. 1 to Dec. 22, distributed by maturities.
I In thousands of dollars.]

V\"arrants maturing—

, Within 10 davs:
Dec. i . . . ;
Doc. 8
Dec. 15
Doc. 22
From 11 to 30 days:
Dec. 1
Dec. 8
Dec. 15
Dec. 22
From 31 to 60 davs:
Dec. 1
*.
Doc. 8
Dec. 15
Dec. 22
From 61 to 90 days:
Dec. 1
Doc. 8
Dec. J5
Dec. 22
From 91 days to 6 months:
Dec. I.."
Dec. 8
Dec. 15
Dec. 22
Total municipal -warrants hold:
Dec. 1
Dec. 8
Dec. 15
Dec. 22

Distribution

Atlanta
ing New Chicago.
Orleans
branch).

York.

.Philadelphia.

67
157
80
89

6,698
1,48 A
397
778

791
177
20
293

751
700
650
C50

857
50

153

102

200
169
114
132

2,249
1,070
713

490
455.
445
213

234
183
397
878

278
636
501

213
153
358
368

122
1.83
183
91

261
327
312
215

152
177
442

86
136
137
70

562
772
558
77

280
280
278

444
234
234

265
442
262
101

86
111
116

270
145
305
313

366
290
371
131

818
792
910 i
910

394
116
116
117

157
100
131
181

50
25
34
34

359
359
189
171

530
530
424
399

138
81
81

203
281
167
167

2
2
4
4

390
465
439

34
109
75
75

338
348
25
25

36
61
55
55

1,157
1,157
1,000
920

9,920
3,526
2,082
1,750

1,505
906
739
719

2,568
2,728
2,682

404
404
406
402

2,126
1,485
1,4-10
1,390

592
789
729
729

646
692
672

343
334
316
164

Boston.

XOAV

Clove-, Richland. mond.

50

St. |MinneLouis. apolis.

Total
for
system.

Dallas.

68 !.
18 ,.
152 !.

178

353

672 j
i

204

10,364
2,751
1,379
2,447

289
204
398
468

4,242
3,211
3,170
2,774

331
533
339
67

2,129
3,151
2.624
1,605

2 I
2 i

41
78
78

2,377
1,591
2,362
2,164

50 !

112
163
125
126

2,142
2,531
1,659
1,567

, 1,855
127 ! 1,026
127 i
941
127 |
441

21,254
13,235
11,195
10,557

1,0-11
85

162 ;.
152 ;.

"46T
!
27
78
103
63
50
25
6
6

25
25
50 i
50 •

27 |

2i

by sizes of acceptances bought in open market by all the Federal Reserve Banks during the month of November, and
for the first 11 months of 1916.
To $5,000.

T o 810,000.

T o 825,000.

To S50.000.

|

Bankers' acceptances..' 575 1,674.822
51
Trade acceptances
157,839

T o t a l acceptances
bought during 11
months ending November, 1916

Total.

§ i

S

Total
Per cent
Total acceptances bought
during:
October, 1916
September, 1916
August, 1916
July, 1916
Juiie, 1916
May, 1916
April, 1916
March, 1916
February, 1916
January! 1916

O v e r 8100,000.

I

Acceptances bought in
open market.

N o v e m b e r , 1916:

To §100,000.

626 1,832,661

3.8

49'
524
327
526
562
335
269
288
2071
194

384,176
304,439
916,682
633,337
533^168
012,891'j
847,35l|
941,908!
789,675
546,959

440 3,360.708: 927 15,291,9621 268 ; l l , l S 9 , 3 7 l i 100! 8,374,934 29j 6,056,950 2,339;'45,948,747
93" 852,217
23 '322', 465 j
3' ' 100^ 079j 6, '469', 393 5; 715,791! 1811 2 2,618,384 5.4
533 4,212,925 950 15,614,427i 27l 11,290,0501 106' 8,844,327 34: 6,772,741 2,520! 48,567,131
4,427i 27l|
13"
18.2
8.7
100.0
32.2|
j
8 7 |
3 2 2 | 2 3 2 i
182 . . . !
632i
445
232!
4951
7371
219|
281 j
234!
159!
220

5,079,008:
3,517,940 :
1,888,457;
4,026,432
6,238,1681
1,755,224
2,305,281
1,983,554
1,307,989
l,720,758j

740= 12, 333,59"
660 11 194,706
809
853.
312
313
35j

196

:,035,7365.828'

835,547
12, 830,111
£
739,638
960,425
o,\
5 420,116
'
578,432
6,5
3,548,326
41
,113,726

265: 12,142,475
1651 6,835,609
131! 5,340,003
185 j 7,662,059
1 9 1 •• 8,209,613 j
1081 3,262,880 !
94! 3,896,184,
109! 4,539,67l!
49i 1,830,851!
47 1,857,477|

6,990,915
6,836,652
5,744,106
5,005,021
6,763,226
5,698,417
2,697,334
5,095,263
1,613,614
1,284,593

201
371
35'
29!
37:
23|
11
22!
lot

2,963,522
7,197,162
6,721,610
5,286,683
5,913,336
4,221,630
3,332,850
3,779,223
3,326,375

2,228
1,909
1,216
2,112
2,463
1,059
1,000
1,071
707

40,893,693
37,086,508
28,446,405
36,503,643
42,397,149
21,911,467
18,499,116
22,918,051
12,416,830
9,523,513

99,169,0511,615! 66,866,872| 67256,633,468 263.49,515,132 16,98fj!319,163.506

1 Of the above total, bankers' acceptances totaling $42,949,151 were based on imports and exports, and S2,999,596 on domestic trade transactions.
2 Of the above total, trade acceptances totaling S205,801 were based neon domestic trade transactions, and S2.412,583 were drawn abroad on
importers in the United States and indorsed by foreign bank"




66

FEDERAL RESERVE BULLETIN.

Total investment

JANUARY 1, 1917.

operations of each Federal Reserve Bank during the month of November, 1916, and for the 11 months ending
Nov. SO, 1916 and 1915.
[In thousands of dollars.]

Bank.

Boston
New York....
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. .Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.

Acceptances bought in
Bills
open market.
discounted
for
Trade
member Bankers' acceptbanks. accept- ances. Total.
ances.

Municipal warrants bought.

City.

All
State. other. Total.

Purchases of United States bonds and
Treasury notes.
2 per j 3 'oer
cent • cent
bonds, i bonds.

6,865.6! 8,630.1
8,630.1
517.li
• 517.1!
i 5.301.4!
92.5
715.3J 17,964.11 655.7 18,619.8 5,301.4
322.8i:
5.1 50.3! '378.2'
3,415.0-: 5.513.41 156.0 5,669.4
150.2
29.4!
185.6j1 "2,401.9
106.0 2,655.0!
73.0 2,728.0
276.2
1,463.1!
367.6!
307. G
j
117
1,338.8' 1,761.91 205.8 1,967.
117.3
129.5: 305.2
434.7, 1,076.0
2,036.4! 2,021.1 103.2 2,124.3
1,991.5
260.3!
i
! 260.3!
1,012.8! 1,991.5
401.3 j 1,425.4
155.9:...I 12.1, 168.0."
18.6 1,444.0
634.8
180.2 ! ...
180.2J
.5
211.3!
634.81
439.1
50. Oi
2.0
52.0 1,550.0
156.8,
439.l!
70.2:...
70.2.
181.7 2,544.7) 1,406.1 3,950.8i

Total:
Nov.. 1916... 17,904.1 45,948.7| 2,618.4 48,567. li 7,143.6 427.6
i
Nov., 1915.. j 18,269.7 7,919.0
7,919.0;

Total investment
operations.

'
i
'
;
!

1915

|
I
1

! 181-0 \
|

5,724.4
7,0*58.8
3,045.8
1,389.5
4,682.2
5,040.8
2,285.5
1,241.8
1,4S8.12
3,019.8
2,707.9
494.1

.i 5,628.3 , 79,76-1.5
J 2,988.82:

|

i
i
j

!
i.

i 16,012.8
92.5 !24, 728.0
| 9,462.6
2,402.1; 5,421.7
1 276.2 i 2,106.9
3,423.8
5,952.4
! 1,257.0
3, 814. 6
• 50.0
. . :'
•.. 2,013.3
1,026.8
.5
2,197.9
• 1,550.0
4,202.7

38,178.72

i

;

50.0 |

'

;

|
1
I
0.2!
1

i .
i
i

1

93.8' 7,665.0' 5,397.1 j 231.0 I
| 9,001.2. 2,282.0 I 316.821 sooio1!

11 months cnd-j
i
i
I
ing Nov. 30, :
'
I
I
1916
J144,154.21304,754.9 14,408.6 319,163.5'81,351.0,4,084.5 920.3 86,355.8:42, 878.35 3, 878. 88.4,153.2| 300.0 51,210. J3 600,883.93j
11 months end-!
f
!
:
i
;
ing Nov. 30, !
i
l
52,055. Cj
i
j
62,648.710,193.85J2,7S2.12 390.0,
"13,365.97 i
1915
145,941.01 52.055.0!
.274,010.67
;

;

!

Sales of United States bonds and 1-year Treasury notes during the month of November,

1916.

[Tn thousands of dollars.]

j

I

I Bos- | Now
ton. ! York.
2 per cent bonds
3 per cent bonds
1-year Treasury notes
Total sales

*}$*'
phia

j Cleve- I Rich- j At: l a n d p m o n ( l - | lanta.

i
I
j
j
'
i 744.0 il,310.0
508.0 I 985.0 i 505.0!
:
!
i 100.0
j 744.0 1,310.0 ' 506.0 |l, 085.0 ; 505.0

Sari

Chi- I St. I Minno-i Kansas
cago. ! Louis, j apolis. I City. Dallas.
:

!
j
,"450."6"'" "i2o."6"'

j

Total.

80.0 j
25.0 !

;

80.0
6,146.0
j ' 100.0

!

lOO'.O

1,450.0 : 120.0 1 401.0 ! 105.0 '

; 100.0 I 6,326.0

'

!

I

i

I

:

United States bonds and notes held by all Federal Reserve Banks on Nov. 29, 1916, distributed by
3 per cent j o n p r omt
3 per cent conversion j ° V \.J£r
loan of 1961, bonds of ! l"Jteaar
1946.
1 notes.
i_

2 per cent 2 per cent ! 2 per cent
consols of Panamas of Panamas ot
1936.
i 1938,
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total..

81,252,000
92,550
1,651,000
903,900
276,200
375,100
2,356,000
522,900
1,013,900
7,151,250
2,865,850
2,633,750
21,094,400

880,000
8500,000 1 1,000,000
5O,"666" I

509,"306"

50,000 I
162,000 I
542,500 i

88,000
155,000

1,304,500 • 1,832,300

82,586,560

5/666
2,541,000
1,080,000
1,193,740

$400 !
500 I

900

7,406,300

.

i

maturities.

4 per cent
loan of 1925.1

Total.

$56,000 I 81,000,000 '
82,388,000
,102,900 ! 1,205,000 ;
1,400,450
2,844,000
19,000 I 1,174,000
44,600 i 618,000 ! §2,119,200 7,772,260
1,364,000
17,800 ! 1,070,000
2,034,000
829,900 i
824,000
8,760,100
18400 i 1,517,000
18,400 ! 1517000
1,768,000
3,169,000
675,100 891,000
3,166,340
27,200 !
700,000
181,000
939,600 ;
963,000
825,000
10,128,850
705,000 !
j
707,400 |
4,975,750
500,000
3,133,750
3,437,900

11,167,000 j 4,893,200

51,136,500

Amount of United States bonds with circulation privilege:
Amount of United States bonds and notes without circulation privilege:
2 per cent
$24,231,200
3 per cent of 1961
S900
3 per cent
7,406,300
3 per cent conversion
3,437,900
4 per cent
4,893,200
3 per cent 1-year notes
11,167,000
Total




36,530,700

Total

.*.

14,605,800

67

FEDERAL RESERVE BULLETIN.

JANUARY 1,1917.

FEDERAL RESERVE BANK STATEMENTS.
Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve System at close of business on Fridays, Dec.
1 to Dec. 22, 1916.
RESOURCES.
[In thousands of dollars.]
Philadelphia.

Cleve- Richland. mend.

Atlanta.

Chicago.

141,908
127,187
134,726
151,752

16,650
16,429
16,780
14,042

36. 464
36) 074
15, 611
15, 386

4, 549
4, 512
4, 602
< 665

4, 876
4, 988
0 , 435
0 ) 555

29,254
26,193
26,834
28,390

8,602
8,623

7,171
21,241
16,900
19,826

15,838
9,448
8,930
15,105

22, 870
20, 32!
18, 608
17; 434

23, US
23, 017
23. 054
39) 231

8, 332
6, 80O
407
0 , 939

27,863
31,044
34.379
29)428

250
250
250
250

50
50
100
100

55
53
48
45

245
2('3
253
221

267
262

142 I 7,080

269
223
102
77

i , 009
779
632
534

46
22
10
10

180
136
158
109

32,807
26,150
25,892
29.324

40, 398
37, 227
34, 899
33, 279

27, 958
27, SI 4
27; 919
?A, 127

Bostcn.

New

Gold coin and certificates in vauit:
12,317
Tec. 1
14,478
Dec. 8.
Dec. 15
j 13,961
Dec. 22
1 11 552
Gold settlement fund:
I
Dec!
15.734
Dec. 8
1 13,080
Dec. 15
!
Lee. 22
\
Gold redemption fund:
!
Dec. 1
I
Dec. 8
!
Tec. 15
Dec. 22
Legal-tender r o t e s , silver, etc.:
Dec.l
:
Dec. 8
i
Dec. 15
j
Dec. 22
...i
Total reserve:
j
Dec.l
'.
Dec. 8
|
Dec. IS
i
Dec. 22
j
5 per cent redemption fund against j
¥. 11. b a n k n o t e s :
I
Dec. 1
i
LOeo. 8
!
Dec. 15
Dec. 22
|
Bills discounted—members:
'
:
Dec.l
Dec. 8
Dec. 15
Dec.22
Bills bought in open m a r k e t :

Dec!
Dec.8
Dec. 15
Dec. 22
United States bonds:
Dec.l
Dec. 8
Dec. 15
"..
Dec. 22
1-year Treasury notes:
Dec. i
*
Dec 8
Dec.15
[/.'.'.'.'.'.'."'.'.'."'.
Dec. 22.
Municipal warrants:
Dee. 1
i
!
Dec. 8
Dec. 15
Dec. 22
Federal Reserve notes, net:
Doc. 1
Dec. 8
".....I
Dec. 15
i
Dec. 22
1
Due from other F. R. Banks, net: !
Deal
.
Dec. 8
Dec. 15
Dec. 22
"
.
All other resources:
Dec. 1
Dec. 8
Dec. 15
Dec. 22
Total resources:
Deal
Dec. 8
Dec. 15
Dec. 22
1

14,580
18,606
50
50
50
50 |

279 ; 1,302
82 ' 4,792
2,870
165
28,243
27,887
28.083
30,373

4,021
8,747
7,236
6,081

160.409
149', 980
356,668
1374,698

San i Total
,
Minne-1 Kansas
apolis. City. Dallas. Fran- j for
Cisco. :system-.

4,718
4.977
5)398
5,550

4,537
4,638
4,809
4,864

7.736
6'. 110
4)348
3,349

9,197
9,391
8,494
G,562

17,932
17)770
18.114
18)065

14.052
3.5)594
14,664
14,574

200
200
200
200

47
178
166
1C4

30
30
30

118
113
111
104

154
74
67
62

10
10
10
10

I 1,416
i 1,533
I 1,543
I 1,479

384
227

303

9,982

7,677
7,727
7,931
8,584

1,156
1,163
1.802
1)321

181
174
175
172

34
36
54
48

279
201
197
194

102
47
62

10,836
4', 644
7,907
6,025

17,541
16,074

17,085
17,322
16,630
35,348

15,489
16,856
18,796
20;069

I 450.010
I 432)633
I 443,209
I 455,942

483

13, 600 57,701
12,236 57,664
33; 258
7-19
11, 90(3 j

9,48IJ

15,301

""
I
2,23.9
4,628
6,191
5,991

3,600

2.805
3)990
1,710
1,4G0

1.082
1)259
1,258
1,952

6,547
8,687
8,474
8,834

5,541
6,385
6,823
6,988

' 2,957
4,605
5,748
6,03S

7,508

2,268
2.203
2)203
2,203

2,466
2,442
2,442
2,442

824 I !.5!7
824 !)537
821
824 ] I". r J 7
>

891
891
891
891

700
700
700
700

003 i

404
404
406
402

592
789
729

646
692
672
672

343
77
334 I 127
316 ! 127
164 I 127

! 2,364
! 2)610
"
" 2,547
,
i 3)366

36,680 i 13,336
41,386 • 14,816
42,084 j 14,361
10,947 I 41,510 ! 13,909

7,205
8,449
8)801! !
9,750

1,250
1,660
2,742
3,404

j
i
'
1

4,835
5,271
5,108
4,693

1.670
3)651
1,651
1,651

7,154 i
7,361 i
7,361 !

294
426
426
1,126

i
;
1
j

1,210

1)73.0 i 8,358
1,710 I 8)408
1,710 I 8,458

1,174
1,174
3,174
1,174

618 !
618 ;
618 !
63 8 :

1,157 : 9,920 i 1,505
1,157 I 3,526 " 906
1,000 ! 2,082 i
739
920 : 1,750 i
719

2,568 i
2,728!
2,682 ,
2,682 !

9,942 •
9,666 ;
4,345 !

14,232
11,873
10,617

3,380
1,3321,332
1)332

1G5
195
993
1,013

3,000 I 1,205
1,000 ! 3.205
1,000 • 3)205
1,000
1,205 !

! 10,071 1,300
; 10,464 i 1,839
! 11,311
i 12,213

2,473
6,399
949 i 5,906
8,944 I 14,050
6,032 ! 6,820

7,361 I

1,070 I
1,070 !
1,070
3,070 ;
61 •

61 ''
61 :
61

625

!
:
!
!

2,126
1,485
1,440
1,390

793 !
447
1,076 , 1,754
! 1,227
i,i33 . 1,989

11,126
13,247
8,795
15,020

57
30 j 138
91
11 !
316 93
25 163
255

163
171
217
207

121
32
45
54

53,678 221,733 54,068
53,726 !222,742 51,255
50,101
57,520 243,747

61,564
60,232
60,421
59,402

33,965
34,383
34,736
33,877

j
!
i
I

735
718

280
240
760
600

24,024
25,292
25,815
25,608

91,970
95,497
96,198
99,034

285
483

705 1,066
666 j 944

6,166
6,942
8,774
9,494
37l!
244 :
673 !
277 ,
36,175 ,
35,524 I
37,104 I
36,798

420
420
420
400
311
294
293
281

21,505
38,345
37,748
32,297

1,81.0 ' 3,293
2,365
1,635
3,301
3,914
4,075 2,036

10,920
12,650
12,945
12,448

106,606
119,782
122,918
124,633

2,634
2,634
2,634
2,634

40,215
41,548
42,648
43,504

SCO
500
500

479 I

9,166
9,166
9,160
9,216

4,270
4,270
4,322
4,328

705
705
705 !
705 i

.•=00

11,167
11,167
11,167
31,167

1,855
1,026
941
941

21,254
13,235
11,195
10,557

1,065
2,017
2,520
2,342

063 I

18,301
18,760
19,504
19,236
138,188
136,565
147,586
149,318

""566"
25

2,495
2,881
4,656
3,506

14
39,621
39,792
40,135
40,701

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




261,917
245,335
256,418
269,627

5,038 ! 175,781
7,235 181.101
7,873 ! 177)341
10,692 I 178,811

2,577
1,101

30,070
30,359
29,544
29,804

j
I
i
I

923
845

2,532
2,199
2,066
2,071

1,549
1,009
1,686
1,114

337

202

3.616
3)490
3,369

j-

761.
686
2,587
1,672
3,605
3,724

13 i

22,802 19,922
22,896 ! 20,507
23,677 i 19,737
23,767 1 19,694

10,365
9,509
10,866
9,305

320 100
320 100
320 j 100 f
300;
246
2,418
1,525
2,244
1,477 ; 2,473
995 ' 2,902

1.159
751
1.160
810

St.
Louis

40,383
41,478
44,124
42,230

710,161
715,316
741,051
750,560

68

FEDERAL RESERVE BULLETIN.

JANUARY 1,1917.

Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve System at close of business on Fridays, Dec.
1 to Dec. 22, 1916—Continued.
LIABILITIES.
[In thousands of dollars.]
Boston.

Capital paid in:
Dec. 1
Doc 8
Dec. 15
Dec 22
Government deposits:
Dec
Doc
Dec
Dec

1
8.
15
22

Member bank deposits, not:
Dec 1

New
York.

Philadelphia.

Cloveland.

Richmond.

Atlanta.

Chicago.

St.
Louis.

5.007
5. Oil
4.990
4,990

11,913
11.914
11,914
11,914

5,228
5,228
5,228
5,228

5,993
5. OSS
5^990
6,022

3,346
3.3-16
3,346
3,346

2,480
2,480
2,480
2,480

6,685
6.685
6,685
6,685

2,798
2-798
2 7^8
2,796

2.609
2.609
2.608
2,610

3,058
3,065
3,068
3,070

2,695
2.695
2,695
2,695

3.925
3,924
3,929
3,929

2,546
3.168
2:871
2.365

1,860
4,725
3,717
5,520

3,759
2,903
3.081
3', 167

1,562
1,213
1,183
986

3,034
2,569
3,145
2,663

3,603
3,739
3,670
3,760

2,853
2,153
1,455
2,515

2,138
2.361
3,044
2,665

849
820
855
912

137
453
362
157

1,684
1,553
1,519
1,461

2,692
26,777
3,011 ' 28,668
3,860
28,762
3,301
29,472

39,145 54,009
39.247 53,031
39', 072 53,248
43\ 629 52,394

25,511
25,997
24,561
24,381

13,788
15,499
16,066
15,780

82,397
86,610
88,015
89,799

26.193
26,833
27,125
27,217

26,605 35.302
26.911 35.238
25', 765 35,600
26.252 35 484

23,142
23,555
22,960
22 822

2,044
2,434
2, 775
3,456

4,037
3,518
3.549
3,533

5,046
3,532
4,137
4,120

1,096
1,008
1^ 105
1,990

1,160
931
781
1,501

45,890 207,829
45,289 205', 950
Dec 8
Dec. 15
51,873 222'. 578
49,914 226|177
Dec 22
Federal Reserve notes, not liability:
Dec 1
Dec 8
.
..
Dec 15
Dec 22
Federal Reserve bank notes in
circulation:
Dec.l
Dec 8
Dec. 15
Dec. 22
Due to other Federal Reserve
Banks, net:
Dec.l
Dec 8
Dec. 15
Dec 22

All other liabilities:
Dec. 1
Dec. 8
Dec 15
Dec. 22
Total liabilities:
Dec.l
Dec. 8
Dec. 15
Dec. 22




259
1,154

San
Total
Franfor
cisco. system.

Minne- Kansas
apolis. City. Dallas.

33,719
34,483
36.273
34,938

i

5,771
3,698
2,278

875

165
179
183
182

30
37
34
31

56
56
50
55

35
49
43
35

33,965
34,383
34,736
33,877

24,024
25,292
25,815
25,608

91,970
95,497
96,198
99,034

613.530
618.643
643', 136
6^8 787
13,383
11,423
12 606
15,754

28
28
i

55,737
55 746
55,731
55,765

28
28
:

!

123
598

293
•

235
255
249
251

131
153
172
136

53,678
53,726
59,983
57,520

221,733
222,742
238,381
243,747

.

54,068
51,255
50,101
53,360

61,564
60'. 232
60,421
59,402

7
19
23
30
36,175
35,524
37,104
36,798

30,070
30,359
29,544
29,804

::::::

39,621
39,792
40,135
40,701

28,681
28,857
28,553
28,479

47
60
62
62

706
808
816
782

40,383
41,478
44,124
42,230

710,161
715,316
741,051
750,560

69

FEDERAL RESERVE BULLETIN.

JANUARY 1,1917.

Federal Reserve note account of each Federal Reserve Bank at close of business on Fridays, Dec. 1 to Dec. 22, 1916.
[In thousands of dollars.]
Boston.
Federal Reserve notes issued to
bank:
Dec. 1
Dec. 8
Dec. 15
Dec.22
Federal Reserve notes in hands of
bank:
Dec. 1
Dec. 8
Dec. 15
Dec.22
Federal Reserve notes in circulation:
Dec.l
Dec. 8
Dec. 15
Dec.22
Gold and lawful money deposited
with or to credit of Federal Reserve Agent:
Dec.l
Dec. 8
Dec. 15
Dec.22
Carried to net assets:
Dec.l
Dec. 8
Dec. 15
Deo. 22
Carried to net liabilities:
Dec.l
Dec. 8
Dec. 15
Dec.22




New
York.

12,187
12,147
13,103
13,503

90,733
94,764
98,875
104,941

1,159
751
1,160
810

10,071
10,464
11,311
12,213

Philadelphia.

Glove- Richland. | mond.

14,121 8,763 19,187
15,964 9,420 19,694
17.232 10,574 20,034
17; 194 10,939 20,478
1,300
1,839
1,041
146

625
481
761

846
766
805
374

! 24,513
~ ""
25,448 !
25,799 I
25,959 ;

4,142 , 16,702 20,380
4,137 I 17,166 20,380
5,513 I 17,148 20,331
5,189 16,918 20,311

884 ; 1,549 j
1,003 ! 1,009 |
972 i 1,686 j
988 ! 1,114

11,028 80,662 12,821 8,138 18,341 23,629
2,593
11,396 84,300 14,125 8,939 18,928 24,445 3,128
11,943 87,564 16,191 9,813 19,229 24,827 3,827
12,753 92,728 17,048 10,253 20,104 24,971 j 4,075

12,187
12,147
13,103
13,563

90,733
94,764
98,875
104,941

14,121
15,964
15,932
15,894

1,159
751
1,160
810

10,071
10,464
11,311
12,213

1,300
1,839

259
1,154

8,763
9,420
10,574
10,939

San
Kansas : Dallas. Fran- Total
for
City.
cisco. system.

At- ! ChiSt.
lanta. • cago. j Louis.

16,297 19,592
16,494 20,927
16,454 21,278
16,648 21,438

2,532
2,199
2,066
2,071

301
815
210
227

2,044
2,434
2,775
3,456

4,037
3,518
3,549
3,533

544 |
632
535 :•
550

255
184
335
199

17,848
18,181
18,265
18,240

19,955
20,767
20,882
21,727

4,112 11,355
4,137 12,819
5,513 ! 12,801
5,189 12,571

20,380
20,380
20,331
20,311

18,859 ! 23,410
19,759 i 23,610
19,777 i 23,533
19,737 22,502

!
:
i
i

1,065
2,017
2,520
2,342

21,131
22,160
23,402
21,720

1,096
1,008
1,105
1,990

1,160
931
781
1,501

12,218
14,218
15,103
14,795

252,057
264,639
273,274
278,528

1,065
2,017
2,520
2,342

2,532
2,199
2,066
2,071
5,046
3,532
4,137
4,120

12,218 268,270
14,218 279,462
15,103 289,778
14,795 296,766

24,570 , 11,153 247,139
! 24,541 I 12,201 257,302
24,314 • 12,583 266,376
:
; 24,003 I 12,453 275,046

16,401
16,351
16,938
I 16,691

1,549
1,009 1
I 1,686
1,114

625
481
761

20,499 i 24,825
21,399 ! 24,725
21,417 24,649
22,277 i 24,202

18,301
18,760
19,504
19,236
13,383
11,423
12,606
15,754

70

JANUARY 1,1917.

FEDERAL BESEEVB BULLETIN.

Federal Reserve note account of each Federal Reserve Agent at close of business on Fridays, Dec. 1 to Dec. 22, 1916.
[In thousands of dollars.]

New
York.

Boston.

Federal Reserve notes:
Received from ComptrollerDec. 1
Dec.8
Dec. 15
Dec.22
Returned to ComptrollerDoc. 1
Dec. 8
Dec. 15
-.-.
Dec. 22
Chargeable to Federal .Reserve
AgentDec.1
Dec. 8
Dec.15
Dee. 22
In hands of Federal ttsservo
AgentDec.1
Dec. 8
Dee. 15
Dec. 22
Issued to Federal Reserve
Bank, n e t Dec. 1
Dec. 8
Dec. 15
Dec. 22
Amounts l^old bv VorLei-Al Rosr-rve
Agent:
In reduction o['llability on outstanding notes —
Gold coin, and certificates
on liand—
Dec. 1
Dec. 8
Dec. 15
Dec. 22
Credit balance in gold redemption f u n d Dec. 1
Dec. 8
Dec. 15
. .
Dec. 22
Credit balance with Federal
Reserve Board—
Dec. 3
"Dec. 8
Dee. 15
Dec. 22
As security for outstanding
notes—

phfc

Clovc

!

I

1
24,500 24,220
24,500 25,120
24,500 27,120
24,500 28,120

158,400 19,880
163,400 21,920
108,400 I 30,480
! 173,400 I 30,480

15,160
15,160
16,660
16,660

28,000
28,000
29,500
29,500

33,280
33,780
35,380
35,380

10,380
10,380
10,880
10,880

22,540
22,540
22,540
22,540

6,913
6,953
7,117
7,357

5,759
52,147
5,956
52,516
52)805 : 5,i
53,139 ' 6,026

3,497
3,540
3,586
3,621

6,163
6,306
6,466
6,522

3,642
3,706
3,756
3,796

1,357
1,362
1,367
1,691

2,298.
2,334
2,352
2,582

800
800
849
869

29,038
30,074
31,624
31,584

9,023
9,018
9,513
9,189

20,242
20,206
20,188
19,958

23,700
23,700
23,651
23,631

17,967
17,927
21,763
2.1; 523
.", 780
5,780
8,660
7,960

106,253
110,884
115,595
120)261

! 14,121 !
; 15,964 !
! 24,492 j
:
24,454 ;

15,520 i
16,120
!
16,720 7,260 ;
15,320 , 7,260 I

2,900
2,200
2,500
2,100

19,187
19,694
20,034
20,478

12,187 90,733 I 14,121 ! 8,763
32,147 94,764 15,964- I 9,420
13,103 98,875 i 17,232 ! 10,574
13,563 104)941 ! 17,194 I 10,939

11,100
11,100
12;100
12,600

85, 853
89, 253
92, 652
99, 052

1,087
1,047
1,003
963

4, 880
5, 511
223
6,
5,889

3,820 8,280
3,820 8,880
3,820 9,880
3,820 10,280
801 !
764 j
932
894

483
540
694
659

5,125 I
4,626 !
5,825 !
5,625 I

2,650
2,000
3,000
2,500

3,460 |-

j
!
j
j

797 !
744 j
704
648 :

'
.
i

1,300
1,300

2,890
3,200
3,580
3.830
19,187
19,894
20,031
20,478

3,112
3,352
4,333
4,564 j

1,162
1,097
2.048 I
2,008 I

412,280
422,720
447,380
453,380

1,602
1,602
1,617
1,925

90,300
91,297
92,283
94,080

I

I

I 22,252
! 23,152
I 25,070
i 26,030

31,166
!
31,066
j30,990
30,858

14,118 321,980
16,118 331,423
16,103 355,097
15,795 359,300

6,341
6,341
6,341
6,656

1,900 ! 53,710
1,900
51,961
1,000
65,319
1,000 I 62,534

16,702
17,166
17,148
16,918

192
187
183
179

844
926
898 . ]
I
5,310 I
6,810
6,710
6,510 J
on/?

3,950
3,950
5,330
5,010

4,921 I
4,521 I _
4,521 1
4,521 "

20,380
20,380
20,331.
20,311

24,825 12,218 ! 268,270
24,725 14,218 i 279,462
24,649 i 15.103 | 289,778
24,202 I 14,'795 i 296,766

20,499
21,399
21,417
22,277

1.100
1,229 i 1,240 •
1,100 1,229 1,340j
1,229
i',100
1,051" 1,147 1,263 ,
-/"
i
1 t\*r
1)031 ••1,107 | 1*232 '
;

AI^

6,250
6,250
6,250
6,250

13,360
14,260
14,260
14,260

115,318
149)318
154)817
162,117
14,369
14,921
16,677
15,931

518
518
503
475

! 11,830 11,700 92,370
I 11,930 13,700 100,400
11,930
10,930

1,640
1,640
1,640
2,510

5,347
i 4,347
4,347
4,347

1,415
1,115
1,116
1,700

20,499
21,399
21,417
22,277

24,825
24,725
24,647
24,202

101,780
100,430

14,600
14,320

.

..
.i
i
i
!

15,213
14,823
16,504
18,238

I

21,513
25,448
25,799
25,959

4,142 15,702
4,137 17,166
5,513 ! 17,148
5,189 16,918

4,929
4,529
4,528

5,347
4.351
4,350
4,348

4)525

15,720
17,720
17,720
17,720

- 5,165 I 13,030 4,270 10.340
. 5'. 165 . V\,(ttQ ! 4,270
1
10)3-10 !
-I 5)165 ! 13,030 j 4,370 10,340 i
5,165 13,030 i 4,370 10,340 :

3,460 !.
,
i 3,460
; 3,460

14,970
| 15,500 !
9,500
! 15,750 I16,370
11,380
11,180 ... ."J 15,750 :15,770
j 16,000 15,970
11,180 ,

Dee! 8 " ! ! ! " ! " . ! ! ! ! " ! ! ! ! .
Dec. 15
i.
Dec.
!.
T o t a l - 22
!
Dec. 1
12,187 90,733 14,121 8,763
Dec. 8
! 12,147 91,764 15,954 9,420
Dec. 15
' l:$, 103 93,875 17,232 10,571
Dec. 22
1 13,563 104,941 17,194 10,939
Memorandum:
I
Total amount of commercial j
pap
aper delivered to Federal •
Res
Reserve A g e n t Dec. 1
1

4,142
4,137
5,513
5,189

j 35,320
35,320
35,320
35,320

3,540 I 3,320 1,753
3,040 ! 3,320 I 1,753
3,040 I 3,320 " 3,653
.
3,0-10
3,320 | 3,753

4,881
4,881
4,000
4,000

24,513
25,448
25,799
25,959

r

1,968
4,154
1,968 j 4,254
2,050
4,330
2.090
4,462

!
11,663 21,837
11,620 21,694
13,074 23,034
13,039 ! 22,978

San
Total
Franfor
cisco. system.

Minne- • Kansas 1 n ,,
St.
Louis. apolis. ! City. ! J J a i J a s -

24,880
24,880
28,880
28,880

1,300
1,300




Chicago.

j

Commercial p a p e r -

Dec. 8
Dec. 15
Dec. 22

Atlanta.

Richmond.

"

20,380
20,380
20,331
20,311

1,642
1,640
1,641
2,545

I
:
I
!

1,525
1,582
1,878
1,795

268,270
279,462
289,778
296,765

12,218
14,218
15,103
14,795

I

16,555
15,454
17,030
19,077

GOLD IMPOSTS AND EXPORTS.
of gold, by customs districts, Jan. 1 to Dec. 15, :W:(6.
[In thousands of dollars.]
!
Maine
Art- ; Ki
and New Nev.- .Florida.
Hamp- York.
Orleans. zona. J 'aso.
shire.

Han
La rod 0. A l a s k a .
i-isco.

SouthMichiSt. Lawern WashCali- ington. Buffalo. Dakota. gan. Ohio. rence. Total.
fornia.

- -

Week ending Nov. 24.

•

!

Ore and base bullion
United States mint or assa v office b'irs
Bullion refined
United States coin
Foreign coin
Total
.

38

15

rj-i -

•

23

2, -134

157
365
1
2,434

i

2.476

8

Week ending Dec. 1.

148

6

157
135

I
254

3

13

<2

8

15

148

3

3,105

6

21

157

80

!

Ore and base bullion
United States mvnt or assay office bars
Bullion, refined
Foreign coin
Total

. ..'

37

3G

23

214
24,375

39
24,789
2,433

24,375

27,475

24,133
22,875

24,683
1
25,308

47,008

50,441

28, i08

28,401

28,108

28,634

334,931
1,778
91,819

12,509
4 460
439,512
3,122
149,661

428,528

609,264

39

3i'2

•\

••

2

i

2,'133
378 '

37

10 '

5

2,439

2

23

21

so

8

105

12

Week ending Dec. 8.

Ore and base bullion
United States mint or assav office bars
Bullion, refined
United States coin
Foreign coin

fil

j

1

1

5

1

44 8

•

100

16
98

2.533

114

25S

31

3

194
255

255
3

1
2,433

Total

1

500

1

5

Week ending Dec. 15.

i

Ore and base bullion
Bullion, refined..
United States coin
Total

7/i

i

I

2

7
4

2(52

:

8

12

32

82

232

27
1

!

337

11

2

1

31

3

27

32

82

624

357

2,162

1

Jan. 1 to Dec. 15.

Ore and base bullion
Bullion, refined
United States coin
Foreign coin
Total

1

.

2,377

33,881
1,218
1 28,644

349

20,002

66 12ft

45 :
10
55

506

105

iss

1

20,000

47

fi

9 ::::::::::::

363

694 ! 152

lift

3,066

3

2,603

2.794
' 20

237

3,410

31

2,587
50

2,930

33,242

34

5,246

26,766
237

4 460
41,643

3

2,412
49,139

357

2,162

3

•

Excess of gold imports over exports for 50 weeks, Jan. 1 to Dee. 15. 1916
Excess of gold imports over exports for corresponding period, 1915




3459,457
404,200

I

• Vermont.

PA

St. Lawrence.

6

Mont-ana a n d
Idaho.

o

02

Michigan.

¥

to

Dakota.

1.d

Washington.

PH

San Francisco.

o

Hawaii.

800

o

Alaska.

3,000

PH

Eagle Pass.

800

3,401

New Orleans.

3,000

3

Virginia.

Florida.

33
3,305

Now York.

Philadelphia.

Maine and New
Hampshire.

Exports of gold, by customs districts, Jan. 1 to Bee. 15, 1916.

"p

Week ending Nov. 2fh
1,037

63

31

80

i

1,100
70
7,185

;

United States mint or assay
office bars
Bullion, refined, domestic
United States coin
Foreign coin
:
Total

i

1

1,117

1

6

8,356

2

1

31

869
13

Week ending Dec. 1.

Ore and base bullion
United States mint or assay
office bars
Bullion refined domestic
United States coin
Total

13
867

7

6

4,955

29

217

17

4,961

29

1,084

30

2

500

5,726

6

2

502

6,621

2

2,025

7,476

2

2,025

8,023

11

7

6

6
5

Week ending Dec. 8.

United States mint or assay
office bars
Bullion refined domestic
United States coin
Total

5
5

24
513

3,399

350

400

1,300

3,936

3-50

J00

1,300

10

1
24

29
518

i

19

Week ending Dec. 15.

United States mint or assay
office bars
Bullion, refined, domestic
United States coin
Foreign coin
Total
Jan. 1 to Dec. 15.
Ore and base bullion.
United States mint or assay
office bars
Bullion, refined:
Domestic
Foreign .
United States coin
Foreign coin
Total




1,034
11,384

110

365

198

1

44

27
44

11,428

110

365

2

1,232

25

12

186

14,928

1,041
6,329
1,438
57,391
18,197
2

1,034
12,097

3,000 1,629

15

350 1 165

'
2 1

84,396

3,000 1,629

15

350 1,165

2

386

29,371

13

3S6

45,216

2

513
4
21
29

4

9

12

104
1

16
6

1
3

50

5,594

912

109

33

16

216

13,202

271
16,768

522

5,402

6

1

1

70

50

i

1

H

11

275

701
i

19

42
16
1 4.150

750

2 6,152

765

^422

15

7,631
1,458
103,803
19,876
149,807

73

FEDEEAL EESEEVE BULLETIN.

JANUAUY 1,1917.

EARNINGS ON THE INVESTMENTS OP FEDERAL RESERVE BANKS.
Average amounts of earning assets held by each Federal Reserve Bank during November, 1916, earnings from each class of
earning assets, and annual rate of earnings on the basis of November, 1916, returns.
Average balances for the month of the several classes of earning assets.

Bills disBills bought
counted,
in open
members. | market.

United
States
bonds.

\
|

One-year
Treasury
notes.

Municipal
warrants.

Total.

I

!

I
:
i
i
1

9

1

8

2

1

Total.

§2,015,145 $12,938,419
1,067,498 ! 30,371,945
709,357 I 12,351,742
6,884,225
271,773 |
1,452,632
2,964,959
4,615,246
3,103,944
6,395,444
3,240,961
5,029,402
2,141,803
3,015,500
1,418,800
1,839,471
771,464
1,918,216
943,441
6
10,655,967
299,216

SI, 616,138
642,617
1,874,600
6,077,867
294,041
1,210,000
7,246,467
2,290,000
2,616,500
9,198,133
3,510,750
2,716,250

§1,000,000
1,205,000
1,174,000
661,333
1,070,000
821,000
1,517,000
891,000
700,000
963,000
705,000
500,000

§1,779,419
6,379,169
1,863,130
3,680,377
60,750
330,005
2,641,500
834,336
1,281,400
408,784
69,655
2,164,714

$19,349,121
39,666,229
17,972,829
17,575,575
5,842,382
10,083,195
21,041,372
11,186,541
9,032,200
13,180,852
7,147,062
16,336,147

19,923,136

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
D
l
Dallas l
San Francisco

39,293,363

11,210,333

21,493,239 |

188,413,505

96,493,434

Earnings from—
Bills disBills
counted, bought
memin open
bers.
market.

Boston
New York
Philadelphia..
Cleveland
Richmond....
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas C i t y . . .
Dallas
Ban Francisco.
Total

United
States
bonds.

Calculated annual rates of earnings from—

One-year MuniciTreasury pal warrants.
notes.

§2,364
2,947
2,871 i
1,653 !
12,577 j
2,544 |
522 i
2,015 i
2,653 j
3,793 |
14,437
2,252 j
4,435 I
1,754 !
4,751 I
2,368 !
16,163
1,724 ;
6,292 !
1,250 j
4,406 !

§5,114 §25,270
3,371
64,222
24,638
2,129
13,613
1J000
9,432
3,549
9 445 I 10,876
12,153
12,903
6,552 ! 10,594
5,735 i
5,961
3,129 !
3,751
7,489 !
2,045
1,138 j 21,615
i

§2,840
1,379
3,152 i

66,687 \ 199,037

73,667 ; 27,531 i 53,056




$4,449
14,803
4,572
10,256
171
985
6,450
2,284
3,010
189
4,9

Total.

Bills disBills
counted, bought
memin open
bers.
market.

United One-year MuniciStates Treasury pal warnotes.
bonds.
rants.

Total.

Per cent. Per cent. Per cent. Per cent. Per cent. Per cent.
2.47
2.22
2.98
3.16
3.19
2.61
2.57
2.62
3.00
2.79
3.85
2.66
2.43
2.05
2.98
2.99
3.67
2.53
2.41
2.52
3.00
3.40
4.49
2.72
3.08
2.24
3.00
3.56
4.02
3.50
2.88
2.68
2.98
3.64
3.71
3.14
2.46
2.39
3.00
2.98
4.58
2.87
2.57
2.36
2.99
3.28
3.73
2.85
2.41
2.22
3.05
2.87
4.93
2.86
2.49
2.14
3.00
2.65
4.95
2.44
2.50
2.20
3.00
3.20
4.68
17,739
3.00
2.48
2.01
3.00
2.S2
4.64
33,467
2.50

§40,037
86,722
37,362
39,099
16,218
25,974
49,736
26,117
21,207

419,978

4.08

2.52

2.29

3.00

3.01

2.72

74

FEDEE-AL BESEEVE BULLETIN".

JANUARY 1,

1917.

DISCOUNT RATES.
Discount rates of each Federal Reserve Ba,nh in effect Dec. 3, 1916.
Maturities.
(Commodity Paper Member
paper bought banks'
matur- in open collatAgriculing
eral
tural
market. loans.
11 to 30 16 to 30 31 to 60 61 to 90 and live- To 30 31 to 60 61 to 90 within
Within Within days, in- days, in- days, in- days, in- stock days, in- days, in- days, in- 00 days.
10, days. 15 days. clusive. clusive. clusive. clusive. paper clusive. clusive. clusive.
over 90
days.
Discounts

4

3.V

A

4
4
4
4
4

3
3*

U
4
4
34

l

3

4
4

4

A

4
4
41
4

4

•

J
31

4
4
44
4
4

1
Rate
2
Rate
B

4
4
4

4
4
4

5
,5
415"

4

3='.

<>"

O.3.

3i

4
4

?

'71

4

4

3-i
4

34

3?.

t

32

31
34

or

3.\

•:«:

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Atlanta (New Orleans
branch)
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

Trade acceptances.

3-i
34

5
4.15
5

f

«i

8

3"

34

3
34
313

3

si

4
34
3-j

34

4
[

f3

3-5

31
81
3-i
4
4
3>7,
4

for bills of exchange in open-market operations.
for trade acceptances bought in open market without member bank indorsement.
Rate for commodity paper maturing within 30 days, 3^ per cent; over 30 to 60 days, 4 per cent; over 60 to 90 days, 4^ per cent; over 90 days, 5
per cent.
.
NOTE.—Rate for bankers' acceptances, 2 to 4 per cent.




INDEX.
Pago.

Acceptances, distribution of, by sizes, maturities,
etc
Assessment for expenses of Federal Reserve Board.
Bank of England as foreign agent
Bankers' acceptances, growth of use of
Business conditions throughout the 12 Federal Reserve districts
:
Charts:
Commercial paper, acceptances, and other investments held
.'
Reserves and net deposits of Federal Reserve
Banks
Clearing plan, operation of
Commercial failures during November
Commercial paper, distrib ution of
Discount rates in effect
Directors of Federal Reserve Banks:
("lasses A and B elected
^
Class C appointed
Dividends declared by Federal Reserve Banks
Earnings on investments of Federal Reserve
Banks
Federal Reserve Agents, meeting of
Federal Reserve Agents' accounts, statement of
Federal Reserve Bank statements
Federal Reserve Board, assessment for expenses of..
Federal Reserve note account of each Federal Reserve Bank




Page.

Federal Trade Commission and Federal Reserve
63-65
Board, collaboration between
23, 24 Fiduciary powers granted by Board
5 Gold imports and exports
5,6 Gold settlement fund
Governors of Federal Reserve Banks, meeting of...
33-56 Informal rulings of the Board:
Purchase of acceptances
Group insurance
57 !
Differencial as to acceptances
I
Acceptances against bullion
57
Purchase of warrants from member banks
6
Compensation of member bank officers
19
Acceptances, security for
57-62 Law department:
74
Demand and wight bills
Eligibility of warrants
7, 8
litigation involving constitutionality of section
7
11 (k) of act
4 National bank charters granted
National banks, statement showing 100 largest
73 Resources and liabilities of Federal Reserve Banks.
4 Review of the month
69, 70. Trade acceptances, increased use of
67, 68 Treman, R. II., extract from address of, on trade ac23, 24
ceptances
United States bonds, purchase of
69, 70 I War loans of foreign countries

o

21-23
20
71, 72
25-27
7
28
28
28
29
29
30
30
31
32
32
20
19
67, 68
1-4
8-10
9,10
5
10-19

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