Full text of Federal Reserve Bulletin : January 1918

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FEDERAL RESERVE
BULLETIN




ISSUED BY THE

FEDERAL RESERVE BOARD
AT WASHINGTON

JANUARY, 1918

WASHINGTON
GOVERNMENT POINTING OEJB1CE
1918

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

Secretary of the Treasury,
Chairman.

W. P. G. HARDING, Governor.
PAUL M. WARBURG, Vice Governor.
FREDERIC A. DELANO.
ADOLPH 0. MILLER.
CHARLES S. HAMLIN.

JOHN SKELTON WILLIAMS,




Comptroller of the Currency.

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 officers and directors may have it sent
to not less than ten names at a subscription price of $1 per annum.
No complete sets of the Bulletin for 1915 are available.
Bound copies of the Bulletin for 1916 may be had at $5 per copy.
n




SECOND EDITION OF THE INDEX DIGEST.
The Federal Reserve Board has had prepared a second
edition of the Index Digest of the Federal Reserve Act, by
Hon. Charles S. Hamlin, member of the Federal Reserve
Board, the first edition of which was published in 1915.
While the edition is primarily for the use of the Board, enough
copies will be printed to supply the demand of banks and
others who [may desire to purchase them. Those who desire
copies (bound in paper) should at once remit $1 or (bound
in cloth) $1.25 to the Federal Reserve Bank of the district
in which the subscriber is resident. Copies of the edition,
when published, will be transmitted to the respective Federal
Reserve Banks for distribution.
in

TABLE OF CONTENTS.
Page.

Review of the month
Acceptance liabilities of American banking institutions
Tax on parcel-post packages
Opinion of Attorney General on power of Federal Reserve Board to grant fiduciary powers to national banks
Statement of Secretary of the Treasury regarding charges for cashing Liberty bond coupons
Banks granted authority to accept up to 100 per cent of capital and surplus
Election of directors of Federal Reserve Banks
New national-bank charters issued
Fiduciary powers granted to national banks
Commercial failures reported
State banks and trust companies admitted to system during month
Resources of national banks as shown by comptroller's call
Paper currency outstanding
Extracts from annual report of the Secretary of the Treasury
;
Assessment for expenses of the Federal Reserve Board
Gold settlement fund
Operation of the Federal Reserve clearing system
Changes in principal assets and liabilities of the New York clearing house banks since April, 1917
Chart showing
Informal rulings of the Federal Reserve Board
Law department
Business conditions throughout the Federal Reserve districts
Discount operations of the Federal Reserve Banks
Resources and liabilities of the Federal Reserve Banks
Federal Reserve note account of Federal Reserve Banks and agents
Member-bank condition statement
Earnings on investments of Federal Reserve Banks
Gold imports and exports
Discount rates in effect
Foreign exchange rates




IV

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15
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52
58
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66
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FEDERAL RESERVE BULLETIN
VOL. 4

JANUARY 1, 1918.
REVIEW OF THE MONTH.

The year 1917 will stand in financial history
as the beginning
of a new and
to
The close of a , ,,
? , ,
. ,.
wholl
remarkable year.
7 unprecedented period in
American public finance and
banking, due to the entrance of the United
States into the European war, and the far
reaching economic changes resulting therefrom.
For the Federal Reserve system it will likewise mark an epoch due to the assumption of
new duties and relationships which have greatly
enlarged its duties and responsibilities.
In reviewing the year just closed, the country
can not but regard with profound satisfaction the part played by its banking system
under the leadership and with the support of
the Federal Reserve Banks. The way in
which the Federal Reserve System has withstood every test to which it has been subjected
shows the wisdom with which it was conceived,
and that in it the country now possesses a
financial foundation of unrivalled solidity.
Financing of the war has, however, placed
unexpected and heavy burdens not only upon
the Federal Reserve Banks but on the banks
of the country generally. The zeal and efficiency with which they have responded to the
call made upon them is evidenced by the results
which have been achieved in a year which will
forever be a memorable one. Under the leadership of the Secretary of the Treasury the banks
have done their duty admirably in placing both
the short and long term securities of the Government. As long as the war lasts their services in
these directions will doubtless have to be relied
upon in the future as much as in the past. But




No. 1

there are other services of equal, if not of greater,
consequence in the successful financing of the
war in which the help of the banks of the
country will be needed. In extending a word
of greeting to its member banks with the opening of the new year and as we approach the
threshold of our second year in the war, the
Board feels it proper to point out certain fundamental methods in which it believes the banks
can help in placing the financing of the war
upon a foundation of unshakeable strength.
War financing in the last analysis means
putting the Government in possession of goods
and services. Financing by loans means the
sale to the Government of goods on credit.
To win the war our Government and the
Governments with which we are associated
must have goods and services. It is of as
much importance, therefore, that the Government should be helped to obtain the goods it
requires as it is that it should be helped to
procure the credit it requires with which to pay
for goods. In neither respect are the American
people as yet cooperating to a sufficient degree,
primarily because they have not yet been
adequately impressed with the paramountimportance of their cooperation. They have
not yet been made thoroughly to realize the
fact that the success or failure of the war—in
brief, the fate of the country—lies in their
hands. In the great work of educating the
people of the country to an appreciation of
their part in the effective conduct of the war
the banks of the country have an opportunity
to make themselves leaders. In the communities they serve they should endeavor to make
it clear that the amount of goods.that can be
l

FEDERAL RESERVE BULLETIN.

produced, even in a country as large and as
rich as ours, is limited; that saving, therefore, is necessary and that by saving goods the
people are serving their country in four ways:
(1) They enable our own Government and
our allied Governments to obtain the goods
required with the requisite speed. As everybody knows, time is a most important factor at
this juncture. Coal, copper, steel, and foodstuffs are cases in point.
(2) By saving goods not required by the
Government they release corresponding quantities for export to other countries, in exchange for which needed supplies may be
secured. To illustrate: If everybody in the
United States would cut down consumption
of cotton and woolen goods, even to a slight
amount, goods to the value of millions of dollars would be available for export and could be
made the basis of exchange to pay for muchneeded supplies of copper and nitrates for ourselves and beef and wheat for the use of our
allies obtained in South America.
(3) By consuming goods in smaller amounts
not only arc goods saved but money is saved,
and the people thus put in a position to absorb
and pay for the war loans of the Government
out of savings.
(4) By diminishing the consumption of
goods and by paying for Government bonds
out of savings instead of from funds borrowed
from the banks both the rapid rise of prices
of goods is retarded as well as banking inflation, which accelerates the rise of prices.
It can not have escaped the attention of the
banks that, since the beginning of the war, deposits have increased at a rapid rate and that
loans, discounts, and investments have grown
at an even more rapid rate. It is true that the
Federal Reserve's holdings of gold have also
increased to a point where they are larger
than those of any other country, but the percentage of the gold reserves against deposits
and notes has decreased. This is a familiar
phenomenon in time of war and to a certain
extent perhaps unavoidable, but it must
nevertheless be our constant concern to keep




JANUARY 1,

1918.

every dangerous tendency in the banking
situation under control and particularly to retard the too rapid expansion of banking credit,
as far as this can be done without jeopardizing
the main business of the country at this time—
the winning of the war.
Events are, however, every day making it
clearer that the conservation of our financial
strength is not "of itself sufficient to insure the
successful financing of the war. The financing
of the war is only in part a money problem;
in very large part it is an economic problem—a
problem of conserving the economic as well as
the financial strength of the Nation and developing our resources and productive power to the
point where they will be equal to sustain the
great military operations which are in prospect
and all that is incident to them.
'• Nobody should, therefore, consume goods except to the extent that their consumption is
.necessary to maintain health, and vigor.
Nobody should draw upon the credit resources of the country except to finance transactions which are essential for a nation at war.
Credit should be saved as much as goods.
Conservation of credit as regards nonessential
enterprises is necessary in order to provide,
without undue expansion, the credit required
by the Government and by business essential
to the success of the war and the well-being
of the country.
* The Board most earnestly invites serious
consideration of these and kindred steps in the
development of a program of national economy
and bespeaks the cooperation of all the banks
of the country in behalf of their adoption in
their several communities. The banks are
urged to teach in their districts the meaning
and necessity of saving and its relation to the
successful financing of the war; to tell the city
merchant and the country storekeeper that this
is not the time to buy and stock up, especially
with luxuries. Let the people everywhere be
encouraged to consume fewer things and let
those be the simple and substantial things that
are necessary to health and strength. Let the
public realize that it is more respectable in such

JANUARY 1,1918.

FEDERAL RESEKVE BULLETIN.

war times as confront us to be seen in old clothes will depend largely upon the strength and
than in new ones.f? Let the banks tell the people staying power of the Federal Reserve Banks,"
of their communities and their authorities, the a nd urged the importance of developing to the
mayors and governors, that this is not the time | m aximum degree our banking power, and of
for cities to be spending money on public | providing financial machinery adequate for the
works; rather should they be considering the j very great financial requirements imposed upon
suspension [of existing work with the view of j our country by reason of the war. He pointed
releasing men and material for the use of the | out that all banks should cooperate in strengthGovernment and so as not to compete with | ening the reserves of the Federal Reserve Systhe Government for the savings of the people, tem, thereby enlarging the Nation's banking
thereby weakening the ability of the Govern- power. The reserve requirements in a few
ment to place its loans.
States practically prohibit the cooperation of
State
banks and trust companies with the
' There is neither an unlimited supply of men
Federal
Reserve System, and make it impossior of goods or of credit. This is therefore the
ble
for
them
to exchange their Federal Reserve
time for both large and small enterprises, not
notes
for
gold,
and the Board would urge State
engaged in the production or handling of esbanking
institutions
in these States to endeavor
sentials, to reduce inventories and thereby free
to
o
btain
such
legislative
action as will enable
goods and productive power and banking credit
them
to
discharge
what
the President has
for essential uses.
termed
a
"solemn
obligation/'
In those States
Gigantic operations of the Government will
where
the
legislatures
do
not
meet
for a year
cause a further growth of bank deposits and
or
more,
the
banks
might
well
petition
their
loans. Our credit structure should therefore
governors
to
call
a
special
session
of
the
legisbe strengthened as far as possible, and to this
end the banks should bend their efforts toward lature. No State can afford not to do its full
duty at this time in helping the national cause.
three things:
The Board therefore ventures to call upon
(1) Absorption of Government loans by
the
banks, member and nonmember, each in
savings;
its
community,
to join in promoting and carry(2) Conservation of credit for public and
ing
on
a
campaign
of education along the lines
other essential uses with curtailment to nonwhich
have
been
indicated,
confident that it
essential enterprises; and
may
count
upon
their
willing
and effective
(3). Increase of the gold holdings of the Fedcooperation.
,
eral Reserve Banks so as to maintain an adequate basis for our growing credit structure.
The outstanding feature of the year has been
The latter result can be achieved if the banks
the financing of the Treasury
and the public, like those of England and Growth of system. D e p a r t m e a t w i t h i t s i s s u e s of
France—and Germ any as well—unite in a de- nearly $6,000,000,000 in bonds and in shorttermined effort to concentrate gold and gold term certificates issued in anticipation of the
certificates with the Federal Reserve Banks, sale of these bonds. The Federal Reserve
using Federal Keserve notes instead for general Banks, whose fiscal functions had previously
formed only a minor element in their duties,
circulation.
Yv"e must look to the future, and prepare have found one of their chief responsibilities
unceasingly for further demands which may be in the management of Government deposits
made upon us. The President of the United and in placing United States securities. By
States, in a statement issued on October 13, the act of June 21, 1917, Congress changed
called attention to the fact that "the extent the relation of the Federal Reserve system
to which our country can withstand the finan- to the member banks, and altered in an imcial strains for which!we|must be prepared, portant degree the status of the Federal Re*




FEDEBAL BESERVE BULLETIN.

JANUARY 1,

1918.

serve note. These changes have given to the same as those governing the first sale of these
Federal Reserve Banks a broader scope and certificates which occurred during the latter
larger capacity to accommodate the Govern- part of November. The issue accordingly
ment and the member banks dependent upon bears interest at the rate of 4 per cent, and the
them. Important accessions to the member- purchase price is payable between January 2
ship of the system, bringing within its scope and January 15, the certificates themselves
approximately 75 per cent of the liquid bank _ maturing on June 25, 1918. It is expected to
ing resources of the Nation, have been the leave the offer open for some time in order to
result of a general feeling of need for unity of enable the Federal Reserve Banks widely and
action, as well as of recognition of the more properly to distribute these securities.
liberal conditions of membership offered by the
The Board has pointed out to Reserve Banks
amendatory act in question. Thus has been that to attain the results contemplated in this
brought to a successful conclusion the plan of instance, special efforts must be made to reach
uniting into a compact organization the banks the taxpayer, both large and small, who wishes
of the whole country. In consequence of its to anticipate or spread paymei^ts due in June.
largely increased activity in dealing both with The certificates can not be used in payment of
the Government and its member banks, the future Liberty Loan installments, and they are
Federal Reserve System shows a marked not designed ultimately as an investment for
growth in its earnings. Its holdings of gold banks. While the Treasury seeks through
have greatly increased, reaching a maximum these issues to raise money and welcomes subof $1,671,133,000 on December 28, wh ile scriptions from other than taxpayers, the ultiits liabilities have grown more than propor- mate object of the issue is to relieve the contionately, leaving the reserve percentage a t gestion of the money market which would ensue
the close of the year at 63.6 per cent against if approximately two billions of tax payments
notes and deposits. As compared with De- were made by the tax payers in June. Thebanks
cember 29,1916, the gold reserves on December have been advised that it is of great importance,
28, 1917, have increased by the sum of 93 4.9 therefore, that the largest possible number of
millions and the free gold—over and above the taxpayers be reached and encouraged to purtotal required reserves—has increased 300 mil- chase the certificates maturing June 25, and
lions. The problems which must be faced b y that a vigorous effort be made not only to place
the system in common with the whole banking I these certificates in the first instance as far as
and financial community of the Nation during ) possible among taxpayers, but to the extent
the year 1918 are many and serious, but the | that they and the similar certificates dated Nosystem has shown itself esqual to its respon- i vember 30 are in the first instance subscribed for
sibilities, and has furnished a means of bring- | by banks and other than taxpayers, to continue
ing about a coordiantion and unity in American \ the process of education with a view to obtainbanking heretofore unknown.
I ing a large secondary distribution among taxA second issue of Treasury certificates of | payers.
indebtedness, intended prima- | It has been further suggested to Federal
j Reserve Banks that, with the foregoing purpayers, was announced by the | poses in mind, they should consider the advisaSecretary of the Treasury on December 15, the | bility of creating a small special organization
conditions of issue being substantially the I whose efforts should be devoted entirely or




JANUARY 1,1918.

FEDERAL KE3EEVE BULLETIN,

primarily to the work of distributing these
particular certificates. The success of the first
sale has already been described in the December
issue of the Bulletin, the first block of certificates providing for some $691,622,000. During
the month $1,197,013,000 of certificates of indebtedness were paid off and the second installment on account of the second Liberty loan,
due on December 15, was paid at the Federal
Reserve Banks, $597,614,026 being received on
that account, All Government deposits made
against "payments by credit" by subscribing
banks on account of Liberty loan subscriptions
were called and paid during the month.
The annual election of directors whose terms
expire on December 31. 1917,
Election of dihas
been held by the various
rectors.
Federal Reserve Banks, while
the Board has selected Class C directors in those
cases where the terms of the present incumbents
expire with the close of the year. Very few
changes have taken place except in cases where
change of occupation, or other similar conditions,
have rendered existing holders of directorships
ineligible for continuance. The only change
among Federal Reserve Agents is at the Federal
Reserve Bank of Kansas City, where Mr. Asa
E. Ramsay has succeeded Mr. Charles M. Sawyer. In San Francisco Mr. James K. Lynch,
formerly a director, has become governor of
the Federal Reserve Bank of San Francisco,
and Mr. Charles A. Morss has succeeded Mr.
Alfred L. Aiken as governor of the Federal
Reserve Bank of Boston. One or two vacancies still remain to be filled. In general, the
striking feature of the outcome in the selection
of directors of Classes A and B (chosen by the
member banks) has been the failure of the
members to participate as actively as might
reasonably have been expected in the process
of choosing directors. The following table
shows the names of the directors elected by the
banks, the number of banks authorized to cast
ballots, and the number of banks actually
voting:




11
District No. I—Boston:
Class A—T. P. Beai, Boston, Mass
Class B—Chas. A. Morss, Boston, Mass
District No. 2-New York:
Class A—Robert H. Treman, Ithaca, N. Y . . .
Class B-Wm. B. Thompson, Yonkers, N. Y.
District No. 3-Philadelphia:
Class A—Jos. Wayne, jr., Philadelphia, Pa....
Class B-Edwin S. Stuart, Philadelphia, Pa..
District No. 4—Cleveland:
Class A—Robt. Wardrop, Pittsburgh, Pa
Class B—Thos. A. Combs, Lexington, Ky
District No. 5—Richmond:
Class A—Edwin Mann, Bluefield, W. Va
Class B—D. R. Coker, Hartsville, S. C
District No. 6-Atlanta:
Class A—P. R. Kittles, Sylvania, Ga
Class B—Edgar B. Stern, New Orleans, La
District No. 7—Chicago:
Class A—E. L. Johnson, Waterloo, Iowa...
Class B—M. B. Hutchison, Ottumwa, Iowa
District No. 8—St. Louis:
Class A-Walker Hill, St. Louis, Mo
Class B—Le Roy Percy, Greenville, Miss...
District No. 9—Minneapolis:
Class A—L. B. Hanna, Fargo, N. Dak
Class B—Norman B. Holter, Helena, Mont
District No. 10—Kansas City:
Class A—C. E. Burnham, Norfolk, Nebr..
Class B—H. W. Gibson, Muskogee, O kla..,
District No. 11-Dallas:
Class A—E. K. Smith, Shreveport, La
Class B~J. J. Culbertson, Paris, Tex
District No. 12—San Francisco:
Class A—J. E. Fishburn, Los Angeles, Cal
Class B—A. B. C. Dohrmann, San Francisco,
Cal

74
73

79
142
70
184
173
60
100

42
73
85

68
52

322
3 i 322

64
64
27
15

SO

Earnings of Federal Reserve Banks have
been heavy in 1917. At the
Earnings and
end of the year 1916 the twelve
dividends.
Federal Reserve Banks together
showed aggregate arrears in dividends of about
$3,649,000 on an estimated total average
capital of $54,462,000, or about thirteen
months' arrears for the twelve banks. At the
end of this year back dividends amounted to
only $805,000 on an estimated total average
capital of $62,002,000, or about two and onehalf months' arrears for the twelve banks.
Dividends have been declared by all Federal
Reserve Banks. Eight banks have paid their
dividends to the end of the year 1917. The
four remaining banks have paid all dividends
to June 30, 1917, so that arrears still to be paid
under the cumulative requirements of the law
are now quite small. The dividends thus authorized at the several banks, and the dates to

FEDERAL RESERVE BULLETIN.

JANUARY 1,1918.

which in each case dividends have been paid, shall be paid into a surplus fund until it shall
are stated in the following table:
amount to 40 per centum of the paid-in capital
stock of each bank.7' In the event of the
Total
liquidation of a Federal Reserve Bank, the
amount
Bank.
From—
ToRate.
of divisurplus thus accumulated becomes the property
dends.
of the United States, subject, of course, to such
Per cent.
losses
or deficiencies as may occur during the
Boston
Jan. 1,1916 Dee. 31,1917
6 8597,829
New York
Jan. 1,1916 Dec. 31,1917
6 1,466,720
operation
of the banks and which in ordinary
466,768
Philadelphia
Jan. 1,1916 June 30,1917
6
539,805
Cleveland
Jan. 1,1916 June 30,1917
6
corporation
accounting would be a charge
105,254
Richmond
July 1,1917 Dec. 31,1917
6
145,465
Atlanta
Jan. 1,1917 Dec. 31,1917
6
against
an
undivided
profit and loss account.
Chicago
Julv 1,1916 Dec. 31,1917
6 1660,000
St. Louis
Jan. 1,1916 Dec. 31,1916
6 H67,000
Theoretically,
therefore,
the $1,000,000 paid
Minneapolis
July 1,1916 Dec. 31,1917
6 1220,000
183,513
Kansas City
July 1,1916 June 30,1917
6
into
the
Treasury
by
the
Federal Reserve
Dallas
Nov. 1,1916 June 30,1917
6 U10,000
San Francisco
Oct. 1,1915 Dec. 31,1916
6 1295,000
Board is only one-half of the actual earnings
derived by the Government, since it retains
i Estimate.
There never was any reason to doubt that, a contingent claim upon the assets of Federal
in due time, with even a normal volume of Reserve Banks to an equal amount. The
business, it would be possible for the banks, ; sum actually paid in, may, under provision
if wisely and economically managed, to pay of law, be used to supplement the gold retheir dividends in full and earn in addition a serves held against outstanding United States
considerable surplus. The first two and a notes, or may be applied to the reduction
half years of the system's life were exceptional, of the outstanding bonded indebtedness of
because of the abundance of the member the Government at the discretion of the
banks' lending power due to the change in Secretary of the Treasury. While the success
reserve requirements and to the great increase or failure of the Federal Reserve Banks or the
of gold in the country resulting from our heavy value of their services must never be judged
favorable balance of trade. It may reasonably by their earnings, it is gratifying to state that
be expected that from this time on the facilities at this time they are adding to the national
of the reserve banks will normally be called strength not merely through service and the
upon more extensively, even without the conservation of banking resources, but through
added stimulus produced by the present great these direct contributions from earnings.
volume of operations on Government account. With the arrears of the cumulative dividends
Judged from the point of view of earning practically disposed of, another year of activity
capacity, one of the most satisfactory aspects equal to the last may be expected to provide
of the operations of the Federal a corresponding increase in the volume of
surplus earnings. It should be borne in mind
R e s e r v e B a n k s durin
S t h e P a s t that the amount now paid to the United States
year is the fact that the Federal
Reserve Board was able on their behalf to has been arrived at after making all allowances
pay into the Treasury in round figures from the earnings of Federal Reserve Banks
$1,000,000 of surplus earnings. This has been from the beginning for operating expenses,
done under the provisions of section 7 of the depreciation, and other proper allowances.
Federal Reserve Act, which specifies that The Federal Reserve Act differs from the
after the cumulative dividend claims have charters of most foreign central banking inbeen fully met, "all the net earnings shall stitutions in that it names no specific annual
be paid to the United States as a franchise franchise tax, but provides first for the paytax, except that one-half of such earnings ment of dividends to the stockholding banks




JANUAEY 1,1918.

FEDERAL RESERVE BULLETIN.

Minor changes in the schedule of discount
at a moderate rate of return, leaving the excess
rates, published in the last isof earnings, whatever it may be, for the GovReriassiflca- s u e o f t h e Bulletin, have been
ernment.
tion of discount
-, -,
,,
, •,
« -^
On December 21 the Federal Reserve Bank „„.
made
during
the
month
ot
De. o f New York adopted a general
cember. These in practically
, langes in i n c r e a s e j n its discount rates of
discount rates.
all cases have been for the purpose of standabout one-half of 1 per cent, ardizing and harmonizing the rates now prevathereby bringing its schedule into line with lent at the various banks. The revised schedthose of other Federal Reserve Banks as an- ules are published on page 66 of this issue. As
nounced in the Bulletin for November. It there set forth the comparative schedule shows
was held desirable to delay this action until greater uniformity in the rates established by
after December 15 owing to the heavy pay- the 11 banks which have acted than has exments on Liberty Loan account to be made isted heretofore. It has been the desire of the
during the first halt of December, the with- Board to simplify the rate schedule and the
drawal by the Treasury of the large amounts means of acting upon changes in rates. There
on deposit against payments on credit on are now only two schedules for 15-day paper,
Liberty Loan bonds, the vast shifting of funds one for commercial paper and collateral notes
in connection with the payment of maturing secured by commercial paper (including comcertificates of indebtedness, all of which were modity paper and trade acceptances) and the
expected to cause increasing demand for ac- other for collateral notes and customers7 paper
commodation at metropolitan banks. This secured by Government securities. Heretofore
moderate increase in rates was not expected there were four rates, as some banks charged
to have a far-reaching direct effect upon the a different rate for a note secured by commercommercial rate of interest in the community, cial paper than for 15-day commercial paper
but serves a valuable purpose as an indica- discounted, and some had a rate one-half per
tion of policy, besides occupying a place of cent higher for member banks' customers7 notes
significance in connection with the handling of secured by Government securities than for a
accommodations based on Government obliga- collateral note secured in the same way. Some
tions. The process of completing the Decem- banks had a special quotation for the 15-day
ber payments on the second Liberty Loan has trade acceptance.
imposed heavy responsibilities upon the banks
The 15-day rate for commodity paper reof the eastern seaboard particularly, and it has mains merged with the 15-day rate for combeen a satisfaction to know that the Federal mercial paper, even though a special rate for
Reserve System has again proved its worth by longer time commodity paper may later be esaffording machinery through which the Federal tablished. Fifteen-day trade acceptances will
Reserve Board has been able to equalize bank- be taken under whichever classification may be
ing resources. This end has been accomplished the lower. If one of the banks has a trade
in part through the redistribution of acceptan- acceptance rate of 3-J per cent for 1 to 60 days,
ces among the several banks, and through the and a 15-day commercial paper rate of 4 per
undertaking of inter-reserve bank rediscounts, cent, 15-day trade acceptances will accordingly
as authorized by section 10 of the act. The be taken by that bank at 3 | per cent. If, at
result has been to maintain an even and steady another bank, the rate be 3 J per cent for trade
apportionment of reserve funds throughout the acceptances from 1 to 60 days and 3 per cent
country and to avoid, as in the past, any rela- for 15-day commercial paper, the trade accepttive shortage of accommodation or any disturb- ance would in that case be taken at the comance of the financial market due to public
mercial paper rate of 3 per cent. The Board
financing.
holds the view that when commercial paper or




FEDERAL RESERVE BULLETIN.

trade acceptances have run down to 15 days,
the difference in classification is not of sufficient
importance to warrant a special quotation.
Between November 23 and December 21 the
59 New York Clearing House
General Reserve
banks
reported a reduction of
position.
$481,752,000 in average weekly
loans and investments as against a gain of
$88,072,000 in average demand deposits and
practically no change in average legal reserves. Their average Government deposits
fluctuated between $871,102,000 for the week
ending November 23 and $966,010,000 for the
week ending December 7. Large withdrawals
during the subsequent two weeks reduced the
average aggregate Government balances with
these banks to $427,347,000 for the week ending December 22. The average excess of loans
and investments over total, including Government deposits, which stood at $396,274,000 for
the week ending November 23, has gone down
to $233,709,000 for the corresponding week in
December, indicating substantial liquidation
of investments, largely Government securities.
Considerable decreases in the loan and investment account are shown for the week ending
December 14 and more particularly for the subsequent weeks following the redemption by the
Government on December 6, 11, and 15 of
outstanding certificates of indebtedness of the
September 17, September 26, and October 24
issues. On December 15 payment of the
second installment on the second Liberty Loan
was due, while on the same date the Government made the first interest payment on the
first Liberty Loan.
As the result of these operations combined
average figures of vault cash and legal bank
reserves of all the 59 clearing-house banks,
which between November 23 and December
14 had increased by $48,881,000, show a decline for the following week of $53,718,000
while average demand deposits for the week
ending December 21 fell below the average
shown for the initial week in November. The
reserve percentage for all clearing-house banks,
representing the ratio of net demand deposits




JANUARY 1,

1913.

to aggregate cash in vault plus amounts due
from legal depositaries, including Federal
Reserve Banks, which had risen from 19.4
per cent to about 20 per cent for the first
three weeks in December, declined to 18.8 per
cent for the week ending December 21, this
decline apparently reflecting the large withdrawal of Government deposits preceding the
redemption of over 500 millions of certificates
of indebtedness presented on December 15 at
the New York bank. For those clearing-house
banks which are members of the Federal Reserve
System a similar course is shown, their reserve
percentage, figured on the basis of average weekly balances due from the Federal Reserve Bank
only (exclusive of vault cash), rising from 16
per cent for the week ending November 23 to
16.8 per cent for the week ending December 7,
but declining to 15.6 per cent for the week following. Figured on the same basis the actual
reserve percentage of the 54 member banks in
New York City reporting to the Board shows
an increase from 15.5 for December 7 to 17 on
December 14 and a decline to 15.5 on December 21.
For the trust companies in Greater New
York reserve percentages as figured by the
State Banking Department stood at 23 per cent
for the week ending December 7 as against
21.8 per cent for the initial week in November.
Since then the percentage declined to 22.8 for
the week ending December 14 and to 20.8 for
the week ending December 21, figures for the
latter week indicating decreases since December
7 of $234,981,000 in combined loans and investments and of $237,262,000 in aggregate deposits.
According to the weekly statements of the
Boston Clearing House average loans and investments of its 11 member banks show a continuous reduction from $520,693,000 for the
week ending November 24 to $488,988,000 for
the week ending December 22, while average
deposits (including Government deposits, but
excluding bank deposits) declined during the
same period from $456,261,000 to $387,218,000.
The ratio of average deposits, as above shown,

JANUARY 1,

1918.

FEDERAL RESERVE BULLETIN.

to item "Cash in bank and in Federal Keserve
Bank' 7 shows an increase from 12.9 for the
week ending November 24 to 14.4 for the week
ending December 22.
Similar reductions in aggregate loans and
investments from $617,952,000 for the week
ending November 24 to $577,825,000 for the
week ending December 22, are indicated for
the 34 members of the Philadelphia Clearing
House. Government deposits show an even
larger decline from $77,903,000 to $22,289,000
for the same weeks. For the members of the
Federal Keserve System the reserve percentage,
representing the ratio of reserve with Federal
Reserve Bank to net demand deposits shows a
decline from 12.3 per cent for the week ending
November 26 to 11.2 per cent for the week ending December 22.
Liquidation on a large scale of member
Condition of Fed- banks' collateral notes, cseral Reserve pecially notes secured by Libancs.
^ y | ) o n ( j s a n ( j cer tificates of
indebtedness, is the outstanding feature of
recent developments in the field of Federal
Reserve banking. During the first half of
December the Government redeemed large
amounts of outstanding certificates of indebtedness issued in anticipation of payments due on
Liberty Loan subscriptions and used as principal collateral for member banks7 notes.
Between November 30 and December 21 the
holdings by the Federal Reserve Banks of notes
protected by war loan securities decreased
from $405,608,000 to $146,819,000, this reduction being due in a large measure to the redemption of the securities underlying the discounted
paper. Another factor which accounts probably for some reduction in the amounts of collateral notes held by the reserve banks is the
provision in the war revenue act of October
3, effective December 1, which imposes a tax
of 2 cents per 100 dollars or any fractional part
thereof on promissory notes (held to include
collateral notes tendered for discount by member banks to their Federal Reserve Banks).
Other classes of discounts show substantial
increases with the result that the decrease in
total discounts on hand since November 23,




when a record total of?$756,398,000 is shown,
has been only $62,948,000, or considerably less
than the decrease shown in the holdings of
collateral notes. Acceptances are likewise
held in larger volume than at the end of the
previous month, the total amount given for
December 21, $277,943,000, being the largest
on record arid comprising in all probability
the greater part of bank and foreign trade acceptances outstanding. A relatively large increase is noted in the holdings of customers'
paper secured by war loan securities, the total
shown for December 21 being $142,602,000, as
against $93,657,000 at the end of November.
Favorable discount rates, taken, in conjunction with a "buy-and-borrow" campaign,
which was widely fostered in all districts,
was largely responsible for this growth, the
whole movement, moreover, being assisted by
the certain knowledge that any district could
count upon temporary accommodation of the
reserves of other districts through the provisions of the Federal Reserve Act which under
the direction of the Board permits one Federal
Reserve Bank to rediscount for another.
The exercise of this function enabled the Board
to equalize the holdings between Federal
Reserve Banks. During the last month the
Board in the exercise of its power was able
speedily and effectively to equalize reserves
among Federal Reserve Banks, thus proving
the wisdom and utility of one of the basic
principles of the Federal Reserve Act.
Investments of the Federal Reserve Banks
in United States bonds decreased from
$53,962,000 to $50,458,000, as the result of liquidation of Liberty bonds held by certain banks
pending final adjustment of their Liberty loan
accounts. No material change is shown in the
total of short-term United States securities on
hand, the reserve banks' purchases of certificates of indebtedness being on the whole moderate in volume, of a temporary character and
for the exclusive purpose of accommodating
member banks.
During the period under review the banks7
gold reserves increased from $1,604,704,000 to
$1,645,543,000, while the ratio of their total

10

FEDERAL RESERVE BULLETIN.

JANUARY 1,1918.

For the four weeks ending December 14 the
reserves to combined deposit and note liabilinet outward movement of gold
ties decreased from 64,7 to 62.9 per cent.
Gold imports
totaled $3,426,000, compared
In the following table are shown the changes | and exports,
with $4,101,000 for the five
between November 23 and December 21 in the j
totals of discounted and purchased bills held j weeks immediately preceding. Since April 6
by each of the Federal Eeserve Banks, also I of the present year the net outward gold
changes in the aggregates of other classes of! movement totaled $78,041,000, or at a weekly
rate of $2,168,000, as against a weekly average
earning assets:
[000 omitted.]
of about $856,000 for the four weeks ending
December 14. Gold imports for these four
Net
Net
Nov. 23. Dec. 21. increase.
Federal Reserve Bank.
decrease. weeks, totaling $2,702,000, are credited largely
to Mexico, Canada, South America, and the
$2,350
Boston
$70,158
867,808
Dutch
East Indies, while gold exports, totaling
401,451
New York
$4,001
397,450
48,518
16,813
65,331
Philadelphia
$6,128,000,
were consigned largely to Chile and
16,690
61,231
77,921
Cleveland
15,084
Richmor1^ . .
29,560
44,644
Mexico.
Since
January 1 of the present year
6,385
17,380
23,765
Atlanta
12,440
103,754
Chicago...
116,194
the
country's
stock
of gold increased through
22,777
25,120
47,897
St. Louis
3,744
MiTunp-apolis
19,306
23,050
net
imports
by
$183,906,000,
while the gain
37,658
35,356
Kansas City
2,302
19,193
Dallas .
25,157
5,964
since
August
1,1914,
is
given
as
$1,052,668,000,
34,928
44,529
Pan Francisco
-, !
9,601
as
shown
in
the
following
exhibit:
971,452
105,545
Total bills
865,907
Total United States securities.
Total municipal warrants
Total investments held.

111,812
1,422

3,244
320

108,568
1,102

979,141 1,081,122

[000's omitted.]

101,981
Imports.

Further progress has been made during the
past month in the development
New branches
of the Board's policy with reand offices.
spect to the establishment of
branches. Shortly after the opening of the
new year there will have been established
branches of Federal Reserve Banks at New
Orleans, Seattle, Portland, Spokane, Louisville, Cincinnati, Pittsburgh, Detroit, and Baltimore. Of these, all except the three last
named are already in operation. Further
modifications of a minor character have been
made in the standard draft of by-laws suggested
for use at branches, these changes being intended to adapt the by-laws more closely to
local conditions. The general fact, already
noted in former issues of the Bulletin, remains—
namely, the recognition of two distinct types
of branches, the one possessing an assigned
territory and segregated capital, the other and
later type, providing for a clientele consisting
of banks which have voluntarily chosen to
transact their business with the branch rather
than with the parent office.




Aug. 1 to Dec. 31,1914.
Jan. 1 to Dec. 31,1915..
Jan. 1 to Dec. 31,1916..
Jan. 1 to Dec. 14,1917..
Total..

Exports.

$23,253 $104,972
451,955
31,426
685,745 155,793
552,417 368,511
1,713,370

660,702

Excess
of imports
over
exports.
i $81,719
420,529
529,952
183,906
1,052,668

i Excess of exports over imports.

A further change in methods of administering
the present regulations as to the shipment of
precious metals has occurred during the month.
Control of all applications for the exportation
of manufactures of gold or silver when the
metal value of the article shipped is distinctly
small as compared with the cost of labor or of ;
other material employed in its production has ;
been transferred to the War Trade Board, the I
Federal Eeserve Board confining its attention
to applications for shipment of coin, or fine
bullion. The reexportation of gold imported
into the United States with the expectation of
reshipment is being in general forbidden,
except in those cases where the gold is returned
to the country from which it came. This
permits gold to continue to leave the United

•lANUAHY 1, 1 9 1 8 .

FEDERAL BESERVE BULLETIN.

States for countries which have shipped it
here for refining with the understanding that
the refined proceeds of such shipment will
come back to them. It, however, cuts off
dealings in gold which have in the past been
undertaken to some extent for the purpose of
reexporting coin at a profit to other countries.
The movement of silver out of the country
has been heavy, indications being that in a
variety of cases it has been substituted for
gold in the liquidation of international balances.
No system for the definite regulation of
foreign exchange has been apForeign ex- p i i e d dming & the month of
change regula- £
.
tions.
December, pending the issuance
of an Executive order designed
to carry into effect the executive powers
granted by Congress for that purpose. In view
of the numerous problems now coming before
the Board with reference to foreign exchange
and the probability of an enlargement of its
responsibilities in this regard, the Board has
appointed Mr. F. I. Kent as foreign exchange
adviser, Mr. Kent being for this purpose granted
leave of absence by the Bankers Trust Co. of
New York, of which he is a vice president.
It was announced on December 14 that the War
Trade Board had authorized the payment of
drafts accepted on or before December 14,
1917, drawn on funds to the credit of a person
who is an "enemy" or "ally of enemy," or
acting for or on behalf of an "enemy" or
"ally of enemy," or on which such a person
appears as drawer or indorser, when such
drafts are presented for payment in the United
States, provided that when such drafts are
collected for or on behalf of any person who
is an "enemy" or "ally of enemy" or person
acting for or on behalf of an "enemy" or
"ally of enemy," the proceeds of collection be
at once reported by the person making such
collection to and be held subject to the disposition of the Alien Property Custodian. No
drafts can be accepted, or transferred or
dealt in before acceptance, which are drawn
on funds to the credit of any person who is an
"enemy" or "ally of enemy," or acting for or




11

on behalf of an "enemy" or "ally of enemy,"
or drawn by or to the order of such a person,
or on which such person appears as indorser,
unless a license is first obtained from the Bureau
of Enemy Trade. The War Trade Board has
authorized the payment of travelers7 checks,
not exceeding $100 in amount, on which there
appears the indorsement of a person who is
an "enemy" or "ally of enemy," or acting
for or on behalf of an "enemy" or "ally of
enemy," without obtaining a license therefor.
The Board notified Federal Reserve Banks
of the action thus taken and requested thorn to
notify member banks accordingly.
Acceptance Liabilities of American Banking
Institutions.
In continuation of similar figures shown on
page 664 of the September, 1917, Bulletin
there are presented below summary data
of acceptance liabilities of national banks
in principal cities, supplemented by like
data for State banks and trust companies in
New York, Boston, Baltimore, and St. Louis.
Between June and September there was apparently a slight decrease in the amounts of
acceptances outstanding, the New York banks
and trust companies, particularly, reporting
decreases in their acceptance liabilities for the
latter date. November figures for the New
York banks and trust companies show but
little change from figures for the earlier dates.
Between September 9 and November 23, the
Fridays nearest the dates of the Comptroller's
calls, the Federal Reserve Banks increased
their holdings of acceptances from $173,199,000
to $209,905,000. Further increases are shown
for the more recent dates, the holdings on
December 21 being $277,943,000. It is
evident, therefore, that increasing amounts of
acceptances have been finding their way into
the portfolios of the Federal Reserve Banks
in addition to the substantial amounts of acceptances purchased or discounted by accepting institutions and reported with their other
loans and discounts.

12

FEBEBAL EESERVE BULLETIN.

JANUARY 1,1918.

Acceptance liabilities of American hanking institutions.
[In thousands of dollars; i. e., 000 omitted.]

AH national banks
Trust companies in State of New York:
Greater New York
Outside Greater New York
State banks in State of New York:
Greater New York
Outside Greater New York
Trust companies and State banks:
In Boston
In St. Louis
In Baltimore
,

June 20,
1917.

Sept.,
1917.

144,414

l
t138,231

94,485

3 90,452
3 973

5,957

3 7,025
3 331

16,979
60
1,765

6 17,544
6 916
1285

Total.,
1

and on January 4 paid into the Treasury of
the United States as a franchise tax the sum
of $1,134,234.48, the amounts being paid by
Nov.,
the banks as follows: Boston, $75,100; New
1917.
York, $649,363.57; Chicago, $215,799.18; Atlanta, $40,000; Richmond, $116,471.73; Min4 97,188 | neapolis, $37,500. These banks have also
«1,080
established on their books a surplus fund in
4 5,767
U 6 amounts equal to the sums paid the Govern16,370 ment.
7 1,867
2 70

Fiduciary Powers for National Banks.

255,757
6 Sept. 6.
«Sept. 21.

The following opinion, rendered by the
Attorney General of the United States, passes
Acceptance liabilities of national banks in principal cities upon the power of the Federal Reserve Board
of the United States on specified dates.
to grant to national banks the power to exer[In thousands of dollars; i. e. 000 omitted. ]
cise fiduciary powers:
Sept. 11.
2 Nov. 20.

3 Sept. 8.
4 Nov. 14.

June 20,
1917.

? Nov. 29.

Bpt. 11, Nov. 20,
1917.
1917.

New York
Boston
Philadelphia...
Cleveland
Cincinnati
Baltimore
New Orleans...
Charleston, S. C
Chicago
Minneapolis
San Francisco..
Another

79,473
30,681
8,513
1,494
1,578
1,966
1,394
660
3,357
1,468
5,646
8,184

72,717
31,873
9,649
535
751
568
465
137
5,554
991
5,008

Total

144,414

138,231

7,462

Excess Profits Paid Into Treasury.
The law requires that the Federal Reserve
Banks, after paying all necessary expenses,
together with 6 per cent cumulative dividends
to their stockholders, shall carry one-half of
excess profits remaining to their surplus -fund
until the surplus amounts to 40 per cent of the
capital, and shall pay the other half of excess
profits to the United States Government as a
franchise tax, the entire excess profits to be
paid to the Government after the surplus of a
Federal Reserve Bank reaches 40 per cent of
its capital. The Federal Reserve Banks of
Boston, New York, Chicago, Atlanta, Richmond, and Minneapolis have paid their dividends to stockholders to December 31, 1917,




NOVEMBER 26,

1917.

SIR: I have your letter dated November 16,
1917, with reference to the authority of the
Federal Reserve Board to grant to national
banks located in New York the power to act
as trustee, executor, and administrator. I am
of opinion that the Reserve Board has no such
authority under existing laws.
Section 11 (k) of the Federal Reserve Act
of December 23, 1913, c. 6, empowers the
Reserve Board—
SEC. 11 (k). To grant by special permit to national
banks applying therefor, when not in contravention of State
or local law, the right to act as trustee, executor, administrator, or registrar of stocks and bonds under such rules
and regulations as the said Board may prescribe. (38 Stat.
251, 262.)

The congressional enactment therefore authorizes the special permit only "when not
in contravention of State or local laws."
The act of April 16, 1914, Article V, section 223, Laws of New York, 1914, c. 369,
p. 1371, provides:
No corporation other than a trust company organized
under the laws of this State shall have or exercise in this
State the power to receive deposits of money, securities,
or other personal property from any person or corporation
in trust, or have or exercise in this State any of the powers
specified in subdivisions one, four, five, six, seven, and
eight of section one hundred eighty-five of this article, nor
have or maintain an office in this State for the transaction
of, or transact, directly or indirectly, any such or similar
business, except that a Federal reserve bank may exercise
the powers conferred by subdivision one of such section
if authorized so to do by the laws of the United States

JANUARY 1,1918.

Subdivisions 1, 4, 5, 6, 7, and 8 of section 185
of Article V referred to confer authority upon
trust companies to act as registrar of stocks and
bonds, as executor and administrator, and as
trustee in various capacities.
The laws of New York empower only trust
companies organized under the laws of that
State to act as trustee, executor, and administrator. This is not a case where the local
law simply authorizes State banks to assume
trust company functions. Fellows v. First
National Bank (192 Mich., 640). Corporations other than those organized in New York
are expressly prohibited from exercising such
powers. Since the national banks in question
are not organized under the laws of New York,
a special permit to act as trustee would be
plainly in contravention of the State law.
I find nothing in the opinion of Mr. Chief
Justice White in First National Bank v.
Fellows (244 U. S. 416), which would justify,
in the present matter, a different construction
of the unambiguous provisions of the controlling statutes. The language of the present
Chief Justice demonstrates the power of the
national legislature to confer authority upon
national banks to act as trustee, executor,
and administrator, where such powers are
exercised by State trust companies, even
though the State law discriminates against
the national agencies in this regard. The
power of Congress to determine how far
national banks may be subject to State control
is settled, and State regulations which conflict
with the congressional enactments are invalid.
(Davis v. Elmira Bank, 161 U. S. 275; Easton
v. Iowa, 188 U. S. 220; Van Reed v. National
Bank, 198 U. S. 554.) But in this case
Congress has not exerted its power. By section 11 (k) it has explicitly constituted the
local statutory provisions as the criterion of
the corporate capacity of national banks. The
New York statute, therefore, can not fairly
be said to deny to national banks operating
in New York a power Congress intended they
should have.
Very respectfully,
T. W. GREGORY, Attorney General.

Cashing Bond Coupons.
Secretary McAdoo on December 20 authorized the following statement:
' ' I am informed that a few banks and trust
companies are making a charge for cashing the




Liberty bond coupons. Though I realize that
the service rendered by banks and trust companies in cashing coupons is a substantial one,
I desire to point out that the coupons are payable at any Federal Keserve Bank or Subtreasury as well as at the Treasury Department
in Washington, and that any national bank
which is a general depositary of Government
funds is required to cash the coupons without
charge. I am confident, also, that no bank or
trust company which is a depositary of the
proceeds of Liberty bonds or Treasury certificates of indebtedness will make a charge for
collecting the coupons and paying the cash to
the holder, and it is my earnest hope that even
those banks and trust companies which have
not become such depositaries will perform this
service without charge as a patriotic duty."
Acceptances to 100 Per Cent.
Since the issue of the December Bulletin the
following banks have been authorized to accept
drafts and bills of exchange up to 100 per cent
of their capital and surplus:
National Union Bank, Boston, Mass.
Columbia Trust Co., New York, N. Y.
Union Trust Co., Pittsburgh, Pa.
First National Bank, Richmond, Va.
First National Bank, Hutchinson, Kans.
Fourth National Bank, Macon. Ga.
Cleveland Trust Co., Cleveland, Ohio.
Mercantile Bank of the Americas, New York, N. Y.
Continental & Commercial National Bank, Chicago, 111.

Directors of Federal Reserve Banks.
The Federal Reserve Board has appointed
the following Class C directors, Federal Reserve
Agents, and deputy chairmen of Federal Reserve Banks to fill vacancies where terms expire on December 31, 1917. Terms of directors
are for three years. Terms of Federal Reserve
Agents and deputy chairmen are for one year.
CLASS C DIRECTORS.

The PRESIDENT.

81939—18

13

FEDERAL BESEEVE BULLETIN.

3

District No. 1, Boston—Frederic H. Curtiss.
District No. 2, New York—W. L. Saundera.
District No. 3, Philadelphia—Richard L.Austin; Charles
C. Harrison (1-year term).
District No. 4, Cleveland—D. C. Wills.
District No. 5, Richmond—Caldwell Hardy.
District No. 6, Atlanta—M. B. Wellborn.
District No. 7, Chicago—James Simpson.

14
District
District
District
District
District

FEDERAL RESERVE BULLETIN.

No. 8, St. Louis—John W. Boehne.
No. 9, Minneapolis—John H. Rich.
No. 10, Kansas City—Asa E. Ramsay.
No. 11, Dallas—W. F. Ramsey.
No. 12, San Francisco—John Perrin.

FEDERAL RESERVE AGENTS AND DEPUTY CHAIRMEN.

JANUARY 1,1918.

District No. 2—New York:
Class A—Robert H. Treman, Ithaca, N. Y.
Class B—Wm. B. Thompson, Yonkers, N. Y.
District No. 3—Philadelphia:
Class A—Joseph Wayne, jr., Philadelphia, Pa.
Class B—Edwin S. Stuart, Philadelphia, Pa.
District No. 4—Cleveland:
Class A—Eobert Wardrop, Pittsburgh, Pa.
Class B—Thos. A. Combs, Lexington, Ky.
District No. 5—Richmond:
Class A—Edwin Mann, Bluefield, W. Va.
Class B—D. K. Coker, Hartsville, S. C.
District No. 6—Atlanta:
Class A—P. R. Kittles, Sylvania, Ga.
Class B—Edgar B. Stern, New Orleans, La.
District No. 7—Chicago:
Class A—E. L. Johnson, Waterloo, Iowa.
Class B—M. B. Hutchison, Ottumwa, Iowa.
District No. 8—St. Louis:
Class A—Walker Hill, St. Louis, Mo.
Class B—LeRoy Percy, Greenville, Miss.
District No. 9—Minneapolis:
Class A—L. B. Hanna, Fargo, N. Dak.
Class B—Norman B. Holter, Helena, Mont.
District No. 10—Kansas City:
Class A—C. E. Burnham, Norfolk, Nebr.
Class B—H. W. Gibson, Muskogee, Okla.
District No. 11—Dallas:
Class A—E. K. Smith, Shreveport, La.
Class B—J. J. Culbertson, Paris, Tex.
District No. 12—San Francisco:
Class A—J. E. Fishburn, Los Angeles, Cal.
Class B—A. B. C. Dohrmann, San Francisco, Cal.

District No. 1, Boston:
Chairman and Federal Reserve Agent—Frederic H.
Curtiss.
Deputy chairman—Allen Hollis.
District No. 2, New York:
Chairman and Federal Reserve Agent—Pierre Jay.
Deputy chairman—George F. Peabody.
District No. 3, Philadelphia:
Chairman and Federal Reserve Agent—Richard L.
Austin.
Deputy chairman—H. B. Thompson.
District No. 4, Cleveland:
Chairman and Federal Reserve Agent—D. C. Wills.
Deputy chairman—Lyman H. Tread way.
District No. 5, Richmond:
Chairman and Federal Reserve Agent—Caldwell
Hardy.
Deputy chairman—James A. Moncure.
District No. 6, Atlanta:
Chairman and Federal Reserve Agent—M. B. Wellborn"
Deputy chairman—Edward T. Brown.
District No. 7, Chicago:
Chairman and Federal Reserve Agent—Wm. A. Heath.
Deputy chairman—James Simpson.
District No. 8, St. Louis:
Chairman and Federal Reserve Agent—Wm. McC.
Martin.
Deputy chairman—John W. Boehne.
District No. 9, Minneapolis:
Directors of Branch Banks.
Chairman and Federal Reserve Agent—John H. Rich.
Deputy chairman—Wm. H. Lightner.
Directors of branch banks have been named,
District No. 10, Kansas City:
as follows:
Chairman and Federal Reserve Agent—Asa E. RamCINCINNATI BRANCH.
say.
(Federal Reserve IBank of Cleveland.)
Deputy chairman—F. W. Fleming.
District No. 11, Dallas:
Manager: L. W. Manning.
Chairman and Federal Reserve Agent—W. F. Ramsey. Directors: W. S. Eowe, L. W. Manning, W. 0. Proctor.
Deputy chairman—W. B. Newsome.
Judson Harmon, Chas. A. Hinsch, Cincinnati, Ohio.
District No. 12, San Francisco:
DENVER BRANCH.
Chairman and Federal Reserve Agent—John Perrin.
(Federal Reserve Bank' of Kansas City.)
Deputy chairman—Walton N. Moore.
Manager: C. A. Burkhardt.
Directors: C. C. Parks, A. C. Foster, 0. A. Burkhardt,
Class A asid B Directors Elected.
John Evans, Denver; Alva Adams, Pueblo, Colo.

The following Class A and B directors have
LOUISVILLE BRANCH.
been elected by the Federal Keserve Banks for
Federal Reserve Bank of St. Louis.)
the 3-year term beginning January 1, 1918:
Manager: W. P. Kincheloe.
District No. 1—Boston
Class A—T. P. Beal, Boston, Mass.
Class B—Chas. A. Morss, Boston, Mass.




Directors: George W. Norton, W. P. Kincheloe, F. M.
Sackett, Louisville; W. C. Montgomery, Elizabethtown,
Ky.; Chas. E. Hoge, Frankfort, Ky.

15

FEDERAL RESERVE BULLETIN.

JANUARY 1,1918.

NEW ORLEANS BRANCH.
(Federal Reserve Bank of Atlanta.)

Manager: Marcus Walker.
Directors: J. E. Bouden, jr., Marcus Walker, Edgar B.
Stern, Jas. E. Zunts, New Orleans; Frank Roberts,
Lake Charles, La.; H. B. Lightcap, Jackson, Miss.; A. P.
Bush, Mobile, Ala.
OMAHA BRANCH.
(Federal Reserve Bank of Kansas City.)

national banks during the period from December 1, 1917, to December 28, 1917, inclusive:
Banks.

New charters issued to
With capital of
Increase of capital approved for
With new capital of

18
$735,000
5
200,000

Aggregate number of new charters and
banks increasing capital
23
With aggregate of new capital authorized

Manager: W. B. Hughes.
Directors: Luther Drake, J. 0. McNish, W. B. Hughes,
Omaha, Nebr.; P. L. Hall, Lincoln, Nebr.; E. O. Mar- Number of banks liquidating (other than
those consolidating with other national
nell, Nebraska City, Nebr.
banks)
PITTSBURGH BRANCH.
Capital of same banks
(Federal Reserve Bank of Cleveland.)
Number of banks reducing capital
Reduction of capital
Manager: George DeCamp.
Directors: R. B. Mellon, Chas. W. Brown, James D. Cal- Total number of banks going into liquidation or reducing capital (other than those
lery, T. H. Given, George DeCamp, Pittsburgh, Pa.
consolidating with other national banks).
PORTLAND BRANCH.
Aggregate capital reduction

935,000

4
150,000
1
50,000
5
200,000

(Federal Reserve Bank of San Francisco.)

The foregoing statement shows the aggregate of
Manager: W. N. Ambrose, acting.
increased capital for the period of the banks
Directors: A. L. Mills, J. 0. Ainsworth, W. N. Ambrose.
embraced in statement was
Nathan Strauss, Thomas C. Burke, Portland, Oreg.
Against this there was a reduction of capital
SEATTLE BRANCH.
owing to liquidations (other than for con(Federal Reserve Bank of San Francisco.)
solidation with other national banks) and
reductions of capital of
Manager: C. J. Shepherd.
Directors: M. F. Backus, N. H. Latimer, 0. J. Shepherd,
Net increase
Chas. H. Clarke, Chas. E. Peabody, Seattle, Wash.

935,000

200,000
735,000

SPOKANE BRANCH.
(Federal Reserve Bank of San Francisco.)

Manager: Chas. A. McLean.
Directors: E. T. Coman, D. W. Twohy, Chas. A. McLean,
Peter McGregor, G. I. Toevs, Spokane, Wash.

Bonds to Protect Notes.

Fiduciary Powers.

The applications of the following banks for
permission to act under section Ilk: of the
Federal Reserve Act have been approved since
the issue ot the November BULLETIN:
%?$?• DISTRICT No. 1.

'
The Comptroller of the Currency reports as i ^ ^ ; ^ ; ; ^ : ; :
Trustee, executor, administrator, and registrar of stocks
of December 12 that United States Government ^ and bonds:
bonds held on November 30 last, as security for Hi Merchants National Bank, Leominster, Mass.
circulating notes of national banks, amounted •3'SS? •}•
DISTRICT N O . 4.
to $681,565,810, having shown an increase Trustee and registrar of stocks and bonds:
Painesville National Bank, Painesville, Ohio.
since March 31 of more than $17,000,000, or an
average increase of more than $2,000,000 per I I
I H i B I ii
DISTRICT NO. 5.
month during this period.
Trustee, executor, administrator, and registrar of stocks

New National Bank Charters.

and bonds:
First National Bank, Hyattsville, Md.
DISTRICT N O . 7.

The Comptroller of the Currency reports the Trustee, executor, administrator, and registrar of stocks
following increases and reductions in the num- and bonds:
ber of national banks and the capital of
First National Bank, Flint, Mich.




16

JANUARY 1,1918.

FEDERAL RESERVE BULLETIN.

DISTRICT NO.

State Banks and Trust Companies Admitted.

10.

Trustee, executor, administrator, and registrar of 3tocks
and bonds:
Farmers National Bank, Oklahoma City, Okla.
DISTRICT NO.

11.

The following list shows the State banks
and trust companies which have been admitted
to membership in the Federal Reserve System
during the month of December:

Capital. | Surplus.
Trustee, executor, administrator, and registrar of stocks
_.- .-. j
and bonds:
Bank of Kimberly, Kimberly, Idaho $35,000
$10,250
Metropolitan Trust Co.,Boston, Mass. 300,000
300,000
Royall National Bank, Palestine, Tex.

Commercial Failures Reported.
Continued reduction in the country's commercial mortality in comparison with recent
preceding years is disclosed by the failure returns, and commercial defaults for three weeks
of December, as reported to R. G. Dun & Co.,
number 707, against 873 in the same period of
1916. The statement for November—the latest
month for which complete statistics are available—shows fewer insolvencies than in any
November since 1909, the number being only
981, and the liabilities of $13,635,605 are the
smallest for that month back to 1910. Comparing with 1916, the November failures were
less numerous in all of the twelve Federal
Reserve districts, except the eighth, ninth, and
eleventh, and the decreases were especially
marked in the fifth and sixth districts. In
respect to the liabilities, the totals were larger
than last year in the third, sixth, eighth, and
eleventh districts, but smaller in all other
instances, the falling off in the second district
being about $1,500,000.
Failures during November.
Number.

Liabilities.

District.
1916
First
Second
Third..
Fourth
Fifth
Sixth..
Seventh
Eighth
Ninth
Tenth
Eleventh
Twelfth
Total




145
225
81
79
79
119

isp
58
43
46
45
181
1,251

1917
131
198
58
60
31
48
137
62
47
39
57
113
981

1916
$1,772,161
5,112,920
828,883
559,256
687,100
1,072,404
1,989,510
330,795
324,232
325,794
345,757
755,829
14,104,621

1917
§1,350,120
3,673,166
1,860,028
465,607
312,259
1,529,627
1,882,045
1,067,403
201,235
253,853
421,936
618,326
13,635,605

Total
resources.
5,787,080

The Plainfield Trust Co., Plainfield,
N.J
300,000
200,000 8,749,434
The Bank of Genesee, Batavia, N. Y.. 100,000
100,000 1,151,907
American State Bank, Athens, Ga... 100,000
20,000
538,635
Bank of Rosalia, Rosalia, Wash
25,000
5,000
308,777
Conrad Trust & Savings Bank,
Helena, Mont
200,000 | 80,000 3,042,678
Commercial Trust Co., Philadelphia,
Pa
1,000,000! 1,750,000 24,796,108
Camden Safe Deposit & Trust Co.,
Camden, N. J
500,000
800,000 10,352,726
Bloomfield Trust Co., Bloomfield,
200,000

100,000

Morrill & Janes Bank, Hiawatha,
Kans
100,000
50,000
German American Bank, New York
City.
750,000
250,000
Union Trust & Savings Bank, Flint,
Mich
100,000
135,000
Citizens Bank & Trust Co., Tampa,
250,000
Fla
580,000
Charles River Trust Co., Cambridge,
200,000
Mass
200,000
Butler Banking Co., Hood River,
100,000 !
20,000
Nile?City Bank," NilesVMich.* [.' .*.".'; „" 100,000 ; 20,000
Trust Company of Georgia, Atlanta,
Ga
1,000,000 ! 1,000,000
St. Anthony Falls Bank, Minneappolis Minn
300,000
60,000
Joliet Trust & Savings Bank, Joliet,
Highland Park State Bank, High-"
land Park, Mich
First State Bank of Detroit, Detroit,
Mich
Rochester Savings Bank, Rochester,
Mich
Romeo Savings Bank, Romeo, Mich..
Rahway Trust Co., Rah way, N. J
Pittsburgh Trust Co, Pittsburgh, Pa.
Harris Trust & Savings Bank, Chicago, 111
The Dime Savings Bank, Detroit,
Mich
Peninsular State Bank, Detroit,
Mich
..
Citizens Savings Bank, Gilman,
Iowa
Union State Savings Bank & Trust
Co., Kewanee, 111
Detroit Savings Bank, Detroit,
Mich
?
United States Trust Co., New York,
N. Y
Effingham State Bank, Efflngham,

3,213,787
1,143,410
8,404,825
3,848,355
3,550,995
2,893,283
909,708
699,175
3,893,161
3,763,062

100,000

25,000

766,311

1,000,000

400,000

20,976,678

500,000

150,000

8,275,489

50,000 i 10,000
556,346
50,000
30,000
1,081,181
100,000
25,000
398,277
2,000,000 1,000,000 21,067,764
2,000,000 2,000,000 33,570,255
1,000,000

1,000,000 32,769,194

2,500,000 | 1,000,000

27,270,333

25,000 I

11,000

383,801

100,000 I

25,000

1,170,562

750,000 I

750,000

19,524,470

2,000,000 12,000,000

77,455,087

50,000

First Standard Bank *& "Trust Co.",*
175,000
Maysville, Ky
H. C. McLachlen & Co. State Bank,
25,000
Petersburg, Mich
State Savings Loan & Trust Co.,
Quincy, 111
1,000,000
State Bank of Wilbur, Wilbur,
Wash
.'.
50,000
Grand Haven State Bank, Grand
Haven, Mich
,
75,000
First Savings Bank, Sutherland,
Iowa
50,000
Boies State Savings Bank, Hudson,
Mich
75,000
Pender State Bank, Pender, Nebr
50,000
Security Trust & Savings Bank,
Cedar Falls, Iowa
50,000
Madison County Trust & Deposit
Co., Oneida, N. Y
164,100
Eaton County Savings Bank, Charlotte, Mich
100,000

10,000

721,719

60,000

1,418,794

5,000

362,541
8,092,397

5,000

919,175

50,000

1,662,949
320,201

25,000
3,000

734,295
403,036

5,000

254,487

94,870

2,224,326

20,000

FEDERAL RESERVE BULLETIN.

JANUAKT 1,1918.

Capital.
Central Savings Bank, Detroit,
Mich
?
$500,000
Suburban Trust & Savings Bank,
Oak Park, 111
100,000
Maryland Trust Co., Baltimore, Md. 1,000,000
Rome Trust Co., Rome, N. Y
300,000
Chemung Canal Trust Co., Slraira,
600,000

Surplu

Total
resources.

$100,000 311,962,743
10,000
60,000

379,251
8,974,128
3,627,406

400,000

7,301,858

17

act for those agencies or departments of the
Government; including the Federal Reserve
Banks, mailing such packages, where postage
is to be paid thereon,

Resources of National Banks.
Metropolitan Bank, Seattle, Wash... 200,000
100,000 3,559,260
American State Bank, Detroit, Mich. 500,000
185,130 7,243,617
Volusia County Bank, Deland, Fla.. 100,000
100,000 i; 217,318
The Comptroller of the Currency on DecemDiscount and Deposit State Bank,
Kentland, Ind
70,000
35,000
549.592
Newark Trust Co.. Newark, Ohio.... 200,000
125,000 2,655;417 ber 20 issued a statement as to resources of
City Bank, Syracuse, N. Y
500,000
148,000 7,442,110
national banks in reserve and central reserve
Citizens Bank, West Point, Ga
50,000
172,477
Wilmington Trust Co., Wilmington,
cities, as follows:
Del...
500,000
13,141,081
Oceana County Savings Bank, Hart, 1,000,000
Mich
Statements just compiled show that the re13,000
40,000
427,901
Commercial & Savings Bank, St.
sources
of the national banks in the reserve and
Clair,Mich
50,000
10,000
746,874
Old State Bank, Fremont, Mich
50,000
25,000
875,831 ( central reserve cities of the United States at
Trust Company of Fulton County,
Gloversville, N. Y
200,000
100,000
527,339 the time of the last call, November 20, 1917,
A m e r i c a n E x c h a n g e Bank,
Milwaukee, Wis
250,000
50,000 4,721,622 amounted to 10,505 million dollars, exceeding by
The Northwestern State Bank,
1,408 million dollars the greatest resources ever
Bellingham, Wash
45,000 1,474,055
100,000
previously shown, and were greater than those
Pennsylvania Co. for Insurances on
Lives and Granting Annuities,
Philadelphia, Pa
2,000,000 5,000,000 43,602,088 of November 17, 1916, by 1,885 million dollars.
Kirchman State Bank, Cicero, 111... 100,000
25,000
613,746
The total deposits of the national banks in
Interstate Trust & Banking Co.,
New Orleans, La
750,000
500,000 9,171,943 reserve and central reserve cities amounted on
Lansing State Savings Bank,
Lansing, Mich
150,000 | 100,000 2,632,821 November 20, 1917, to 8,593 million dollars, an
Farmers State Bank, Reardan, Wash.
639,855 increase over the call of September 11, 1917, of
25,000 !
7,500
Farmers State Bank, Vail, Iowa
50,000 ;
264,040
8,000
1,087 million dollars, and an increase over May,
Gladstone State Savings Bank, Gladstone, Mich
50,000
15,000
571,986 1917, the greatest heretofore reported, of 1,023
Martinsville State Bank, Martinsville.Ill
17,000
50,000
million dollars. The increase over November
First State Bank, La Crosse, Wash..
60,000
8,000
715,454
17, 1916, was 1,336 million dollars.
Steubenville Bank & Trust Co.,
Steubenville, Ohio
125,000
50,000 1,713,784
The compilation of the country bank reports
Brighton State Bank, Brighton,
Iowa
10,000
50,000
672,810 has not yet been finished, but of the six States
Total
28,919,100 J32,050,750 488,728,420 whose reports have been completed, all but one

show materially increased deposits, including
Louisiana with an increase of 15 millions, ana
Two hundred and fifty Sta.te institutions North Carolina with an increase of 22 million
are now members of the system, having a dollars.
total capital of $229,039,800, total surplus of
Loans and discounts in reserve and central
$296,165,730, and total resources of $4,999,- reserve cities November 20, 1917, were 5,356
million dollars, an increase as compared with
427,655.
September 11, 1917, of 266 million dollars, and
an increase over November 17, 1916, of 655
Tax on Parcel Post Packages.
million dollars.
On November 20, 1917, loans and discounts
The Commissioner of Internal Revenue has
in
and central reserve cities amounted
advised the Federal Reserve Board that Fed- to reserve
51 per cent of total resources, as compared
eral Reserve Banks are subject to the war with a ratio of loans and discounts to resources
stamp tax imposed bv subdivision 14 of of 58 per cent on November 17, 1916.
The increases in deposits and loans are
Schedule A, act of October 3, 1917, upon
!
largely
/ due to transactions relating to the
parcel post packages, and states that this tax
|
Second
Liberty Loan.
applies to all packages on which postage re- i The increase
in deposits in the three central
quired to be paid amounts to 25 cents or more. reserve cities of New York, Chicago, and St.
The commissioner advises that postal authori- | Louis, as compared with September 11, 1917,
ties are prohibited from transporting such was 640 million dollars, of which increase 577
packages until a stamp or stamps representing • millions was in New York City.
Forty-three out of 54 reserve cities show an
the tax due shall have been affixed thereto, I increase in deposits, and only 11 cities show a
and that there is no exemption provided by the 1 reduction. The total increase in deposits in




18

FEDERAL RESERVE BULLETIN.

the 43 other reserve cities which showed increases amounted to 477 million dollars.
The reserve cities reporting an increase in
deposits of 10 million dollars or more were, in
round figures: Boston, 94 millions; Philadelphia 77, Pittsburgh 37, Dallas 26, San Francisco 25, Richmond 17, Atlanta and Fort Worth
14 each, Washington and Kansas City, Mo.,
13 each, Houston and Minneapolis 12 each,
Oklahoma City 11, and New Orleans 10 million
dollars.
Of the 11 cities showing a reduction in deposits the only cities in which the reduction
amounted to as much as two million dollars,
were: Indianapolis 9 millions, Des Moines 5,
Cedar Rapids and Omaha 4 each, Cleveland 3,
and Sioux City 2 millions dollars.

JANUARY 1,

1918.

Report of the Secretary of the Treasury.

The Secretary of the Treasury, in his annual
report on the finances, sent to the Speaker of
the House of Representatives on December 3,
1917, says in part:
America's entry into the European war,
April 6, 1917, brought the country face to
face with unparalleled and unusual financial
problems, both in their variety and magnitude.
To these were added the inevitable accompaniment of many other problems arising out of
essential economic readjustments necessitated
by the war and the transformation of an unarmed and peaceful Nation into a formidable
armed combatant. Many of the familiar
phenomena, inseparable from such a transformation, have appeared and will continue to
Paper Currency Outstanding.
appear until these readjustments have been
The paper currency of each denomination completed. They have caused unavoidable
outstanding on November 30, 1917, was as fol- losses and hardships. Such things can no
more be avoided in time of war than sacrifices
lows:
of blood if the rights of the Nation are to be
United
Treasury
Federal
Federal
vindicated and made safe for the future and a
States
Reserve
notes of
Reserve
Denominations.
We
notes.
banknotes just peace is to be secured for the world.
notes.
must
face
these
trials
with
philosophy,
resolu$19,149,313 $336,238
One dollar
18,201,220 208,767
Two dollars
tion, and calmness. We must see in them not
221,174.130
Five dollars
8192,965,980 $3,817,425
60,567,426
Ten dollars
506,920 389,108,580 5,040,000 alone the inspiration but the call to supreme
12,255,052 226,630 384,714,350 3,985,940 effort.
Twenty dollars
1,300,775
Fifty dollars
72,120,400
9,350
2,133,600
One'hundred dollars...
87,435,300
92,100
When these readjustments have been com',666,500
Five hundred dollars..
One thousand dollars.. 11,223,000
pleted, it will be found that all the brains and
69,000
Five thousand dollars.
energy of the Nation which have been released
Ten thousand dollars..
10,000
Fractional parts
from occupations nonessential to the war will
Total
347,681,016 1,916,000 1,126,344,610 12,843,365 be required in enterprises and activities which
Deduct:
are essential to the war, and that the welfare
Unknown, destroyed
1,000,000
Held in Treasury...
6,828,891
3,941
17,560,005
and prosperity of the country as a whole will
Held by Federal Renot
be impaired.
64,480,424
Redeemed but not
" Business as usual'' can not, of course, be
assorted by denominations
adopted as the guiding principle in time of
339,852,125 1,912,059 1,044,304,181 12,758,885 war. It is a wholly wrong theory and should
Net.
find no advocacy or acceptance by the sensible
National
Silver
Gold
and patriotic people of America. Business
bank
certifiTotal.,
Denominat i ons.
certificates,
notes.
cates.
must be readjusted to the war-making function
One dollar
$342,072
$230,3 17,999 8250,165,622 of the Nation.
Two dollars
163,392
78,947,457
4,078
What is of superlative importance in the
Five dollars
112,749,590
156; 339, 772 687,513,892
297,431,410 $404,344,090 12,105,8411,,169,104,267 readjustment that must take place is that our
Ten dollars
Twenty dollars
242,138,160 312,523i
"
" 724
-"' 16,746,780 972,590,636
191,343,990 people shall be impressed with the necessity
Fifty dollars
29,955,800
493,955
""""' 8,463, 710 234,252,220
One hundred dollars... 34,975,500 79 335,400
280,320
30,800,000 of economizing in the consumption of articles
Five hundred dollars..
88,000 109, 030, 000
15,500
One thousand dollars..
939,500
16,000 147,268,500 of clothing, food and fuel, and of every other
21,000
142,630,000
Five thousand dollars.
630,000
820,980,000 thing which constitutes a drain upon the availTen thousand dollars..
970,000
56,936
Fractional parts
56,936
able supplies, materials, and resources of the
Total
717,921,860 2,034,266,669 484,680,000 4,725,653,520 country.
Everything wasted now is nothing
Deduct:
1,000,000 short of criminal. So far as I have been able
TJnknown,de stroyed
Held in Treasury
14,374,836 640,454,700 10,212,595 689,521,448 to observe, the American people are not sufHeld by Federal Reserve agents
238,899,980
303,380,404 ficiently aroused to the necessity of economy
Redeemed but not
and of saving in this really serious time, not
assorted by denominations
869,795
869,795 only in the life of America but of the nations
702,677,229 1,154,911,989 474,467,405 3,730,881,873 of the world. Up to the present there has been
Net.




JANUARY 1,1918.

FEDERAL RESERVE BULLETIN.

a relatively small denial of pleasures, comforts,
and conveniences on the part of the average
citizen. He is drawing upon the general store
of supplies in the country with almost the same
freedom as before America came into the war.
This can not continue without serious hurt
to the Nation and to the world. The great
financial operations of the Government can
not be carried forward successfully unless the
people of the United States economize in
every possible direction, save their money
and lend it to the Government. By saving
money they give up some of their needless
pleasures; they reduce their demand upon the
general supply of food, clothing, and other
materials in the country, releasing thereby
that much more for the use of our own armies
and the armies and civilian populations of
the nations which are fighting the common
danger with us. They are at the same time
increasing their own material prosperity by
their savings, and they are directly helping
their Government by lending it the money
with which it can buy the necessary supplies
and command the necessary services to make
our fighting forces stronger and more effective
in the field; and this means an earlier victory
for American arms.
The great difficulty is to impress this lesson
of economy upon the American people. It
will require widespread propaganda and constant effort. With this in view, it was my
privilege to suggest to the Congress the raising
of $2,000,000,000 by the sale of war-savings
stamps and thrift stamps, so that the American
people would have the opportunity, as well as
the direct encouragement, to economize and
save money by putting within their reach the
opportunity of lending their savings, in such
small amounts even as 25 cents, to their own
Government.
We have therefore organized a war-savings
campaign upon a wide scale and shall bring to
the attention of every man, woman, and child
in the country the privilege now offered to
them of serving themselves and serving their
country by depositing their savings with the
Government of the United States upon the
safest security in the world. The Government
will accept these savings and issue its direct
obligations for them in the form of war-savings
stamps and thrift stamps.
These stamps are not issued by the Government as an investment for the rich. They are
intended for people of small means primarily.
They are intended to bring within the reach of
everyone in the United States the opportunity
of investing in the obligations of the United
States Government upon terms unusually ad-




19

vantageous to the investor and to encourage
everyone to save his money and lend it to the
Government.
The plan offers the most direct incentive to
economize and save ever offered to the people
of the country. When the Government makes
it possible for everyone to know that by saving
25 cents, which otherwise would have been
wasted, he can invest that 25 cents in a Government obligation, it is a definite objective to
which each one's economy may be directed.
In other words, it is possible to transmute one's
economies into a specific obligation of the Government, and each one who saves is able to
know that his economy is producing a concrete
result advantageous to himself, of benefit to his
Government, and a direct contribution to the
winning of the war.
I look upon the war-saving campaign which
the department has now inaugurated as promising the most wholesome benefits to the American
people, and producing fundamental conditions
that will be of immense help in financing, as
well as in successfully prosecuting, the war.
Interlocked with the question of " small savings" which can be invested in war-savings
stamps at interest is the question of " large
savings" which can be invested in Liberty
bonds at interest. The men and women of
large and moderate means owe a greater duty,
because they have a larger margin of income,
to cut off self-indulgences, to deny themselves
useless and needless luxuries, to make sacrifices
of comforts, pleasures, and conveniences that
will effect genuine economies and set an example to the Nation. Every dollar saved represents actual supplies saved and made available
for heroic soldiers and suffering civilians in
Europe and America.
It is easy to visualize the course of a dollar
saved from waste and invested in Government
bonds: First, it goes to the Government as a
loan for the war; second, it is expended by the
Government for food, clothing, and ammunition which go directly to a gallant soldier or
sailor, whose fighting strength is kept up by
the food, whose body* is kept warm by the
clothing, and whose enemy is hit by the ammunition. It has not been expended in the purchase of needless food and clothing for the man
at home, and is therefore released for the use
of the soldier; it is saved wealth to the man at
home and can be loaned to his Government at
interest, with resulting benefit to himself and
to his Government.
The man who subscribes for a Government
bond, and is advertised as a patriot for doing
so, is not a patriot if he immediately sells that
bond on the market when he does not impera-

20

FEDERAL RESERVE BULLETIN.

JANUARY 1,1918.

lively need the money. It is not mere sub- Government bonds, the greater the cost to
scription to a bond that helps the Government; the American people of carrying on the war
it is the actual purchase oi the bond and the and the greater will be the depreciation in
keeping of the bond that really helps. The peo- all other forms of investment securities. We
le must save and invest in Government bonds, can not regard without concern serious declines
t is by actually lending money to the Gov- in the general value of fixed investments. It
ernment and not by merely promising it and should be the earnest endeavor of everyone to
shifting the load to some one else that the citi- prevent this, and I earnestly hope that the
zen really helps in this great time. If loans processes of education and of unselfish conare made to the Government and bonds are sideration of the problem from the standpoint
taken therefor, the lender is supposed to deny of the general interest will provide the neceshimself something which releases, in turn, a sary remedy.
demand on the vital supplies or stores of the
The Government must, if necessary, absorb
country and puts the Government in position the supply of new capital available for investto buy the supplies thus released and to furnish ment in the United States during the period
them to our armies and navies. But if the of the war. This, in turn, makes it essential
lender immediately sells his bonds, relieves that unnecessary capital expenditures should
himself of the obligation to save vital supplies, be avoided in public and private enterprises.
and goes on wasting them, he does his country Some form of regulation of new capital exa grievous injury and hurts himself as well.
penditures should be provided. The subject
I want to make it clear that there is no desire is having deep study, and I hope to be able to
on the part of the Government to prevent or to submit some suggestions during the session of
interfere with freedom of legitimate trading in the Congress whicn will be of a constructive, as
Government bonds—that is, trading in good well as of a regulatory, nature. It may also
become necessary to concert some constructive
faith.
We must realize that the Government's measures through which essential credits may
credit is vital to the success of the war; that it be provided for those industries and enterprises
underlies every activity. It is a sacred duty in the country essential to the efficient and
of every citizen, and it should be regarded as a successful conduct of the war. The subject
glorious privilege by every patriot to uphold requires the best thought and study. It is
the Government's credit with the same kind of receiving the most earnest consideration.
self-sacrifice and nobility of soul that our galThe courage and resources of the Nation are
lant sons exhibit when they die for us on the so abundant that America's success in the war
battle fields of Europe. It is as imperative to is beyond question if they are properly organsustain the Government's credit as it is to sus- ized and intelligently used. The economic
tain our armies, because our armies can not be and financial condition of the country was never
sustained unless the Government's credit is so strong and America's spirit was never more
always above reproach.
aroused to the importance and necessity of
I have indulged the hope that additional going forward, resolutely and regardless of
bonds could be sold on sucn reasonable terms sacrifices, to the accomplishment of the great
that the remainder of the funds required to task to which God has called us.
^*
^1*
*J*
*5*
*|*
meet the estimated expenditures for the fiscal
year 1918 might be raised by that means and
LOANS TO FOREIGN GOVERNMENTS.
thus escape additional revenue legislation at this
session ol the Congress. It is my earnest conBy the acts of Congress of April 24, 1917,
viction that the general economy of the coun- and September 24, 1917, authority was vested
try should be permitted to readjust itself to the in the Secretary of the Treasury, on behalf of
new revenue laws before consideration should the United States, with the approval of the
be given to the imposition of additional tax President, to establish credits in favor of for* burdens. If a situation should develop where eign Governments engaged in war with the
the Government could not sell convertible and enemies of the United States, and, to the expartly tax-exempt bonds upon a 4 per cent tent of the credits so established, from time to
basis, it would, I believe, become necessary to time, to purchase at par from such foreign
seriously consider further revenue legislation. Governments, respectively, their several obliIn my judgment an increase in the rate of gations, such obligations under the authority
interest on such bonds would be extremely of the act of April 24 to bear the same rate of
unwise and hurtful. The higher the rate on interest and to contain in their essentials the

f




JANUARY 1, 1918.

FEDERAL RESERVE BULLETIN.

same terms and conditions as those of the
United States issued under authority of the
act, and under the terms of the act of September 24, to bear such rate or rates of interest,
not less than the bonds of the United States,
to mature at such date or dates, not later than
the bonds of the United States then last issued
under authority of either act, and to contain
such terms and conditions as might from time
to time be determined by the Secretary of the
Treasury.
A total appropriation of $7,000,000,000 was
provided for these purposes, $3,000,000,000 by
the earlier act and $4,000,000,000 by the later.
Under these authorizations credits have been
established in favor of the Governments of
Great Britain, France, Italy, Russia, Belgium,
and Serbia, and advances have been made to
those Governments as indicated in the following tabulation, which includes all such credits
and advances up to November 1, 1917:
Country.

Great Britain
France
Italy
Russia*
Belgium
Serbia
Total

Loans and
credits agreed
upon.

Loans made.

Balances under
established
credits.

$1,425,000,000 81,425,000,000
820,000,000
820,000,000
500,000,000
255,000,000
325,000,000
159,700,000
58,400,00054,500,000
3,000,000
3,900,000

$245,000,000
165,300,000
3,900,000

3,131,400,000

2,717,200,000

414,200,000

i Of the credits and loans in favor of the Russian Government, $5,000,000
represents a loan to the Roumanian Government, the advance being
made in this manner through the Russian Government in the absence of
a Roumanian representative in the United States who could negotiate a
direct loan to his Government.

The established credits indicated in the above
table cover the period from the date of the
passage of the earlier act, April 24, 1917, up
to November 1, 1917, or a little more than six
months. On the basis of the requests being
made on the Treasury it was estimated that
credits aggregating approximately $500,000,000
per month would be required to meet the urgent
war needs of the foreign Governments receiving
advances from the United States. With a balance of about $4,000,000,000 remaining available for the period beginning November 1,
1917, and with these credits averaging about
$500,000,000 monthly, it is anticipated that
the appropriation will be ample to meet the
requirements to the close of the fiscal year.
In negotiating these loans the judgment of
the Secretary has been determined very largely
by what was represented to him as the actual
necessities for the purchase of supplies and materials and other requirements in carrying on




31939—18

4

21

the war. After obtaining all light possible as
to the reasons for such necessities, if it was
determined that a loan should be made it was
then submitted to the President, and, if he approved, a credit of the sum indicated was established and drawn against from time to time
as the cash was needed to meet those requirements.
The obligations which have been purchased
under the terms of the acts referred to are in
the form of short-term or demand certificates
of indebtedness signed by the duly authorized
representatives of the respective Uovernments
receiving advances of funas. These obligations
under their terms shortly will be converted, at
par, with an adjustment of accrued interest,
into an equal par amount of gold bonds of the
Governments concerned. Interest on these demand obligations was first placed at 3 per cent
per annum, and shortly thereafter increased to
Si per cent per annum, these rates being established to conform to the rates paid by the Government of the United States on its short-term
certificates of indebtedness issued under authority of the act of April 24, 1917, in anticipation of receipts from the sale of the bonds of
the first Liberty loan. Subsequently, and
coincident with the sale of these bonds, the
rate was raised to 3-£ per cent per annum, thus
conforming with the rate carried by the bonds.
For obligations purchased since the approval
of the act of September 24,1917, the rate was
placed at 4J per cent per annum.
By the terms of this act the normal rate of
interest to be borne by the obligations of the
United States issued thereunder could not exceed 4 per cent per annum. At the same time
it rendered the bonds thus issuable exempt
from certain classifications of taxes, thereby
substantially increasing the cost to the Government of the money received from the sale of
its obligations by diminishing the amount
which it might in turn take from its citizens
in taxes. The rate of interest to be charged
on the loans to foreign Governments under the
terms of the act was not definitely fixed, but
was left in the discretion of the Secretary,
though a minimum was fixed. In the exercise
of that discretion it was determined to fix the
rate at 4£ per cent per annum, the additional
one-quarter per cent being added to compensate in part at least the loss to the Government due to the tax-exemption features on its
own obligations above referred to and the cost
incurred by the United States of issuing its
own bonds. This rate in turn will be further
increased in case there should be higher rates

22

FEDERAL BESERVE BULLETH9".

of interest paid by the United States during
the continuance of the war for the moneys
that it may invest in the purchase of foreign
obligations.
THE STOCK OF GOLD.

The gold monetary stock (coin and bullion
used as money) in the United States on November 1, 1917, is estimated at $3,041,500,000.
The increase in the past 10 months has been
$174,500,000; in the past three years $1,236,500,000; while in the past five years it has been
$1,161,333,000. In five years the portion of
the world's gold monetary stock held by the
United States has increased from approximately one-fifth to more than one-third.
CONVERSION OF 3J PER CENT BONDS OF THE
FIRST LIBERTY LOAN.

In consequence of the issue of the second
Liberty loan at 4 per cent the right to convert
the 3J per cent bonds of the first Liberty loan
into 4 per cent bonds arose on November 15,
the date borne by the bonds of the second
Liberty loan. At the time of this writing it
is not known whether the conversion privilege
will be exercised in large measure or not. As
conversion operations must be handled coincident with the issue of the bonds of the second
Liberty loan, and just before the first interest
payment date for the bonds of the first Liberty
loan, the facilities of the Treasury Department
and of the Federal reserve banks will be strained
to the utmost to care for the situation, particularly if any great number of holders of the
bonds of the first issue immediately present
their bonds for conversion. To care lor the
situation, in a measure, coupon interest payments on bonds converted will be made through
adjustment coupons attached to the 4 per cent
bonds issued upon conversion. These special
coupons will care for interest at 3J per cent
from June 15 to November 15 and at 4 per
cent from November 15 to December 15, or
at 3J per cent from June 15 to December 15.
The conversion provisions are covered in
Treasury Department Circular No. 93.
DEPOSITS OF PUBLIC FUNDS.

Under the provisions of the acts approved
April 24 and September 24, 1917, authorizing
the issuance of certificates of indebtedness and
bonds to meet expenditures incident to the




JANUAEY 1,1918.

war, authority was given to deposit with incorporated banks and trust companies subscribing
to the various issues of bonds and certificates
the proceeds arising from their subscription
payments thereto.
While such deposits were necessarily of a
temporary character, they nevertheless served
to prevent any unusual disturbance of the
money market or business conditions throughout the country.
In connection with the issues of certificates
of indebtedness prior to the first Liberty loan,
134 national and 100 State banks and trust
companies in six Federal reserve districts made
application and were accordingly designated as
depositaries for these funds.
Subsequently, 1,251 national and 780 State
banks and trust companies in the 12 Federal
reserve districts made application and were
designated as depositaries of public moneys to
enable them to make payment by credit for
bonds of the first Liberty loan and to receive
cash deposits of funds realized from the sale of
said bonds. A total of $860,117,491.91 of
Liberty loan funds was deposited with these
banks, every dollar of which has since been
gradually withdrawn through the Federal reserve banks and credited in the Treasurer's
general account.
Prior to the second Liberty loan, the number
of special depositaries was further increased by
83 national and 72 State banks and trust companies which subscribed for certificates of
August 9.
The above deposits were made under Department Circular No. 81.
All designations made subsequent to August
9 and prior to October 6 covered deposits to be
made on account of the sale of both certificates
of indebtedness and Liberty loan bonds, and
were made under Department Circular No. 81.
Designations made after October 6 likewise covered the issue of both certificates and bonds,
and were made under the provisions of Department Circular No. 92.
At the close of business on November 13,
1917, the Secretary had designated 1,903 national and 1,343 State banks and trust companies with authority to receive deposits on
account of their subscriptions to any one or all
of the various issues of bonds and certificates
of indebtedness without the necessity of making application and being designated each time
they subscribe to certificates and bonds and
desire to pay for them by credit.

JANUARY 1,1918.

FEDEEAL RESERVE BULLETIN.

23

Summarizing the foregoing by Federal re- tion to the exportation of coin, bullion, and
currency be administered by and under the
serve districts:
authority of the Secretary of the Treasury, and
Number of national banks and State banks and trust com- upon the recommendation of the Secretary of
panies in each Federal reserve district designated as special the Treasury prescribed regulations providing
I that application for permission to export coin,
| bullion, or currency must be filed with a
Number of Total immTifltinnni ! State banks berofde- | Federal reserve bank, which would transmit
District.
bpniSr i and trust ! positaries the application to the Federal Reserve Board.
oanics. companies.; created.
The board, subject to the approval of the
Secretary of the Treasury, was authorized to
Boston
173 !
92 ;
265
New York
280 :
210 !
490 permit or refuse the exportation.
Philadelphia..
206 !
115 !
321
In pursuance of the Executive order the
Cleveland
205 !
120
325
Richmond
204 '
180 j
384 Federal Reserve Board, with the approval of
Atlanta
125 !
87 !
212
Chicago
250 ;
226 I
476 the Secretary of the Treasury, issued regulaSt. Louis
119 i
97 :
216 tions governing the administrative procedure
Minneapolis...
172 !
186 i
358
Kansas City..
162 i
73 |
235 with regard to the exportation of coin, bullion,
Dallas
41 !!
178
137 :
and currency.
San Francisco
163
358
195
At the time of issue of the above proclaTotal...
2,228
1,590
3,818
mation the United States was practically the
only large country freely parting with the preInterest at the rate of 2 per cent per annum cious metals, and as a result there was a tendis charged for these deposits, and at the close ency to transfer to New York by means of exof business October 31, 1917, the Federal change operations balances due by foreign
reserve banks had reported that there had countries and to export gold from the United
been collected through them $1,443,956.42.
States in payment of such balances. In these
The following table shows the amounts of circumstances it became necessary for the prointerest collected upon all public deposits tection of the gold reserve of the United States
during each of the past five fiscal years:
to place restrictions on the export of gold.
In the exercise of these powers no obstacle
Year ending June 30—
1913
|122,218. 89 has been placed in the way of the free exporta1914
1,409,426.07 tion of silver bullion or silver coin of foreign
1915
1,222, 706. 93
1916
791,671. 45 mintage, nor upon the export of United States
1917
1,061, 992. 07 notes, national-bank notes, or Federal reserve
notes, nor upon Canadian silver coin or curEXPORTS OF COIN, BULLION, AND CURRENCY AND rency; but the exportation of gold has not been
permitted except in those cases in which unTRADING WITH THE ENEMY.
usual circumstances have seemed to justify the
The act of June 15, 1917, vested in the issue of licenses for its export. The departPresident the power to prohibit by proclama- ment has not, however, rested content with a
tion the export from this country of any negative policy of prohibition, but has initiated
article mentioned in such proclamation except a series of negotiations having for their purat such time and under such regulations as pose the substitution of arrangements which,
the President might prescribe. Accordingly while avoiding the necessity for large exports
the President on September 7, 1917, issued a of gold, would yet stabilize the exchanges beproclamation to the effect that—
tween the United States and neutral counexcept at such time or times, and under such regulations tries. Progress in these negotiations has been
and orders, and subject to such limitations and exceptions made in various directions, although none of
as the President shall prescribe, until otherwise ordered the negotiations has yet been carried to a final
by the President or by Congress, the following articles,
namely: Coin, bullion, and currency shall not, on and conclusion. By stabilizing the exchanges beafter the 10th. day of September, in the year one thousand tween the United States and any neutral counnine hundred and seventeen, be exported from or shipped try it will be possible to maintain with such
from or taken out of the United States or its Territorial country a course of trade much more nearly
possessions * * *.
normal than if exchange rates continued subBy Executive order of the same date the ject to violent and erratic fluctuations. It is
President directed that the regulations, orders, a pleasure to record that neutral countries
limitations, and exceptions prescribed in rela- have entered on these negotiations in a cordial




24

FEDERAL RESERVE BULLETIN.

spirit of cooperation, and it is hoped that
arrangements may shortly be concluded with
various countries.
Under the act approved October 6, 1917,
commonly known as the trading-with-theenemy act, wide powers were vested in the
President, which, under Executive order of
October 12, 1917, the President allocated to
various departments of the Government.
Assessment by Federal Reserve Board.

Acting under the provisions of the Federal
Reserve Act, the Federal Reserve Board on
December 12 voted an assessment of 0.00135
upon the capitalization of Federal Reserve
Banks to cover the estimated general expenses
of the Board from January 1 to June 30,1918.
The assessment is based upon a capital of
$138,096,000, as of December 7, 1917. The
rate of assessment will yield $186,430. The
resolution of the Board, with the figures on
which the assessment is based and a detailed
statement of expenditures and commitments as
a basis of estimate, are given below. This
assessment is slightly larger than that made
for the previous six-month period. This is
due to the enlargement of the activities of the
Federal Reserve Board and the increased work
which it has been and will be called upon to
perform.
Whereas under section 10 of the act approved December 23, 1913, and known as the
Federal Reserve Act, the Federal Reserve
Board is empowered to levy semiannually upon
the Federal Reserve Banks in proportion to
their capital stock and surplus an assessment
sufficient to pa^r its estimated expenses, including the salaries of its members, assistants,
attorneys, experts, and employees tor the half
year succeeding the levying of such assessment,
together with any deficit carried forward from
the preceding half year; and




JANUARY 1,1918.

Whereas it appears from estimates submitted and considered that it is necessary that
a fund equal to one hundred and thirty-five
thousandths of 1 per cent (0.00135) of the
capital stock of the Federal Reserve Banks be
created for the purposes hereinbefore described, exclusive of the cost of engraving and
printing of Federal Reserve notes: Jfow, therefore,
Be it resolved. That pursuant to the authority
vested in it by law, the Federal Reserve Board
hereby levies an assessment upon the several
Federal Reserve Banks of an amount equal to
one hundred and thirty-five thousandths of
1 per cent (0.00135) of the total capital stock
of such banks, and the fiscal agent of the Board
is hereby authorized to collect from said banks
such assessment and execute, in the name of
this Board, a receipt for payment made. Such
assessment will be collected in two installments
of one-half each; the first installment to be
paid on January 1, 1918, and the second half
on March 1, 1918.
Estimate for January, 1918, assessment.
Average monthly encumbrance for period
July 1, 1917, to Dec. 31, 1917
$21,870.42
Estimated monthly requirements, January
to June, 1918, inclusive
$30,811. 24
Estimated monthly increase

$8,940. 82

Estimated requirements, January to June,
1918, inclusive
$184,867.44
Estimated unencumbered balance Jan. 1,
1918
0.00
Total capitalization of Federal Reserve Banks
Dec. 7, 1917

$138,096,000

Rate of assessment to produce $184,867
0.0013387
Rate of assessment to produce $186,430
00135
Rate of assessment to produce $193,334
0014
Rate of assessment to produce $207,144
0015
In view of all conditions I have the honor to recommend
that an assessment of one hundred and thirty-five thousands of 1 per cent be levied.
SHERMAN ALLEN,

Fiscal Agent.
Approved for 0.00135.
F. A. DELANO,
0. S. HAMLIN,
A. C. MILLER,

Committee on Organization,
Expenditures, and Staff.

25

FEDERAL RESEEVE BULLETIN.

JANUABY 1,1918.

Detailed statement of expenditures and commitments as a basis of estimate.

July 1 to
Nov. 30,
1917.

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
Contingent
Total
Nonpersonal services:
Transportation and subsistenceBoard and its clerks
Secretary's office
,
Division of audit and examination.
Division of reports and statistics....
Counsel's office
,
Messengers
Communication service:
Telephone
Telegraph
Postage
Printing, binding, etc
Contract repairs
Electricity (light and power)
,
Steam (heat)
Other (nonpersonal)
Supplies:
Stationery
Periodicals
Other
Equipment:
Furniture and office supplies
Books
Gold settlement fund
Rent
Contingencies
Total
Grand total.




Estimate for
December.

Total for 6
months.

Estimated
Monthly
monthly reaverage for 6 quirements,
Jan. 1 to
months.
June 30,1918.

$37,040.56
11,885.00
9,013.33
10,149.83
7,083.34
4,203.99
2,485.83
327.05

$7,458.33
2,430.82
1,846.66
2,614.96
1,447.66
1,041.64
493.33
66.00

$44,498.89
14,315.82
12,764.84
12,764.84
8,531.00
5,245.63
2,979.16
393.05

$7,416.48
2,385,97
1,810.00
2,127.47
1,421.83
874.27
496.53
65.51

$7,458.33
2,430.82
1 846.66
2,614.96
1,447.66
1,041.64
493.33
66.00
2,609.91

82,188.98

17,399.40

99,588.38

16,59a 06

20,009.31

774.37
18.00
3,802.03
40.05
22.90
10.00

100.00

874.37
18.00
4,502.03
40.05
22.90
.15

145.73
3.00
750,34
6.68
3.82
2.50

200.00
20.00
1,000.00
10.00
10.00
3.00

1,050.98
4,027.70
20.00
12,438.46
35.09
180.00
45.00
923.23

175.16
671.28
3.33
2,073.08
5.85
30.00
7.50
153.87

250.00
1,000.00
5.00
2,000.00
20.00
30.00
15.00
50.00

150.80
310.09

132.*78
25.13
51.68

150.00
25.00
100.00

3,840.74
142.40
955.91
744.72
500.00

640.12
23.73
159.32
124.12
83.33

500.00
25.00
200.00
188.93
5,000.00

870.98
3,227.70
10,938.46
35.09
150.00
30.00
873.23

"700." 66'
5.00
180.00
800.00
20.00
1,500.00
30.00
15.00
50.00

646.69
150.80
260.09

150.00

3,540.74
142.40
805.91
555.79

300.00

50.00

150.00
188.93
500.00

26,895.23

4,738.93

31,634.16

5,212.36

10,801.93

109,084.21

22,138.33

131,222.54

21,870.42

30,811.24

26

FEDERAL RESERVE BULLETIN.

GOLD SETTLEMENT FUND.
Shifting of funds and credits through the
gold settlement fund from the interior to New
York in connection with the second Liberty
Loan and other fiscal operations of the Government account largely for the heavy volume
of clearings effected through the fund during
the 4 weeks ending December 20, 1917. For
the latter week, which witnessed payment of
the second installment on the second Liberty
Loan, combined clearings and transfers totaled
$1,063,988,000, which is only slightly below
the record total of $1,092,920,000 shown for
the week ending November 22, following the
payment of the first installment of that loan.
Combined clearings and transfers for the 4week period totaled $3,619,667,000, averaging
$904,916,750 per week compared with a like
average of $870,525,800 for the preceding 5
weeks. Changes in the ownership of gold in
the fund amounted to 2.27 per cent of the
obligations settled, as against 1.77 per cent for
the 5 weeks ending November 22 and 1.74
per cent for the period from May 20, 1915, to
December 20, 1917.
As the result of the shifting of funds Chicago,
New York, and Kansas City show considerable

JANUABY 1,1918.

gains of gold in the fund largely at the expense
of the Philadelphia, Richmond, and St. Louis
banks. Balances in the fund, including
amounts standing to the credit of Federal
Reserve Agents, show an increase for the 4
weeks of $61,735,490 and stand now at
$799,347,600, compared with $272,320,000 at
the beginning of the year.
Below are given figures showing changes in
the fund between November 22 and December
20, inclusive:
Amounts of clearings and transfers. Federal Reserve Banks,
from Nov. SO to Dec. 20, 1917, inclusive.
[In thousands of dollars.]
Total
clearings.
Settlement of—
Nov.30,1917
Dee. 6,1917
Dee. 13,1917
Dec. 20,1917

694,329
711,686
823,664
947,889

3,177,568
Total
20,414,495
Previously reported for 1917
Total since Jan. 1,1917
23,592,063
Total transfers Jan. 1,1917, to date. 2,691,604.5
Total for 1916, including transfers.. 5,633,966
Total for 1915, including transfers.. 1,052,649

Balances
adjusted. Transfers.

51,329
59,729
34,885
74,731

62,500
135,000
128,500
116,099

220,674
442,099
1,886,082 2,249,505.5
2,106,756 2,691,604.5

Total clearings and transfers,
May 20, 1915, to Dec. 20,
1917
32,970,282.5

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

Total to Nov. 22,1917.

Federal lleserve Bank oiDecrease.

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




Increase.

§18,444
S600,116

600,116

74,048
102,669
42,296
52,024
50,499
35,039
19,007
51,247.5
50,847.5
103,995
600,116

Total changes from May
20, 1915, to Dec. 20,
1917.

From Nov. 22 to Dec. 20,1917, inclusive.

Balance to
credit Nov.
22,1917,
plus net deposits of
gold since
that d a t e

Balance
Dec. 20,
1917.

89,915
121,101
36,956
63,737
48,622.2
7,545
41,232.2
32,370
15,177.5
26,668.7
21,162
19,239

S14,101
6,002
12,837
60,930
23,407.2
9,970
79,280.2
10,842
10,328.5
36,971.7
17,590
19,264

301,523.6
i Debit.

301,523.6

Decrease.

Increase.

84,186
27,103

824,119
2,807
25,215
21,528
4,849
3,572
82,090

Decrease.

322,630

3573,013
17,081
54,449
88,547
13,511
14,158
61,550.5
47,275.5
104,020

2,425
38,048
10,303
25*
82,090

Increase.

573,013

573,013

27

FEDERAL RESERVE BULLETIN.

JANUABT 1,1918.

Gold settlement fund—Summary

of transactions from Nov. 22 to Dec, 20, 1917, inclusive.
[In thousands of dollars.]

Federal Keserve Bank of—

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

$16
28,507
33,511
58,485.6
44,371.5
13,545
74,938.7
26,140
15,894
30,217.3
19,204
31,069

Total...

375,899.1

Dec. 20,
1917, balance in
fund after
close of
business.

Weekly statements, Nov. 22 to Dec. 20,
1917.

Transfers.

Gold.

Balance
last statement,
Nov. 22,
1917.

Withdrawn.

Deposited.

Debit.

Credit,

Net
debits.

SI
105,000
69,570
2,126.6
1.3
9,900
60,531.5
7,700
7,000
12,006
3,042
20,640

59,900
55,392
73,015
7,378
4,252
3,900
26,825
13,930
6,283.5
8,457.4
5,000
8,810

851,000
95,000
45,000
48,000
55,000
7,000
30,099
20,000
10,000
22,000
14,000
45,000

$57,000
265,000
1,000

297,518.4 223,142.9

442,099

Total
credits,
dit

Net
credits,

§264,325
952,072
337,281
310,515
153,742
109,762
422,886
196,092
112,622
144,994
85,760
87,517

819,169

10,000
61,099

820,983 $266,139
142,897 1,094,969
9,590
317,400
265,322
123,957
3,207
100,837
392,739
9,638
197,620
14,498
117,471
112,691
3,787
85,332
16,074
103,591

29,471
45,193
29,785
12,632
30,147
8,110
9,649
32,303
4,215

814,101
6,002
12,837
60,930
23,407.2
9,970
79,280.2
10,842
10,328.5
36,971.7
17,590
19,264

442,099

220,674 3,177,568

3,177,568

220,674

301,523.6

38,000
10,000

Total
debits.

Federal reserve agent's fund—Summary of transactions from Nov. 22 to Dec. 20,1917.
[In thousands of dollars,]
Balance
last
Federal Reserve Agent at— statement
Nov. 22,
1917.
Boston
New York
Philadelphia . .
Cleveland
Richmond.
Atlanta
Chicago..

Gold
withdrawn.

Balance,
Gold
20,
deposited Dec.
1917.

825,000
68,215

§100,000
69,020

1,500
4,500
19,444

9,400
60,530

$2,000
54,624
30,000
31,500
38,070
87,479

!

Balance
last
Federal Reserve Agent at— statement
Nov. 22,
1917.

52,000 ' St. Louis
75,000 Minneapolis
55,429 Kansas C i t y . . .
30,000 Dallas
30,000 I San Francisco....
42,970
128,565
Total...

Gold
withdrawn.

Balance,
Gold
20,
deposited Dec.
1917.

833,805
14,500
28,360
10,874
30,501

§13,900
5,000
500
5,200
9,200

§7,500
7,000
12,000
2,800
20,320

$27,405
16,500
39,860
8,474
41,621

361,713

152,459

288,570

497,824

OPERATION OF THE FEDERAL RESERVE CLEARING SYSTEM, NOV. 16 TO DEC. 15,1917.
Items drawn on .
Items drawn on
banks in Federal banks in district outReserve city (daily side Federal Reserve
city (daily average).
average).
Number.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals:
Nov. 16 to Dec. 15
Oct. 16 to Nov. 15.
Sept.16toOct.15.
Aug. 16 to Sept. 15
July 16 to Aug. 15.
June 16 to July 15,
May 16 to June 15.
Apr. 16 to May 15.
Mar. 16 to Apr. 15.




Amount.

2,869 $15,856,369
5,266 75,656,535
17,713,945
15,489
3,500,772
1,599
4,792,088
1,276
2,535,167
1,430
19,607,000
7,128
9,219,408
2,557
6,832,748
2,614
8,295,012
2,245
2,237,551
1,403
5,476,844
3,802
47,678
47,574
40,591
36,306
36,727
38,476
37,898
33,767
31,162

171,723,439
166,552,773
128,271,466
100,331,694
98,075,919
109,722,256
97,322,883
87,370,859
60,288,002

Number.

Amount.

Total (exclusive of
Items drawn on
Numitems drawn on Treas- Treasurer of United Num- ber of
ber of nonurer of United States)
States (daily
mem- mem(daily average).
average).
ber
ber
banks banks
in
dis- on par
NumNumAmount.
Amount. trict. list.
Amount.
ber.
ber.

Items drawn on
banks in other
districts (daily
average).
Number.

36,658 $4,886,680 3,840 $6,643,603
40,519 30,692,125 22,664 13,479,967
19,916 3,136,378 10,140 11,991,578
2,990,266
1,609
20,049 10,675,135
20,562 6,420,140 2,095 5,519,584
2,851,859
1,409
12,269 2,975,150
728,000
1,738
18,020 4,196,000
204 2,057,179
12,504 3,170,070
13,242 1,339,248
906 1,868,518
17,334 7,920,237
778 8,425,755
13,812 6,361,821
566 1,389,507
15,811 2,661,777
513,136
404
240,756
232,723
212,935
182,191
175,625
182,622
179,193
171,093
168,607

84,440,761
64,296,210
47,476,204
41,323,621
40,353,278
41,004,720
38,599,461
36,473,163
32,666,959

46,353
45,393
40,216
32,564
31,273
33,941
33,150
33,428
32,008

58,458,952
53,089,827
44,984,581
40,648,168
37,981,022
46,762,698
38,314,393
36,836,934
34,693,542

43,367
68,449
45,545
23,257
23,933
15,108
26,886
15,325
16,762
20,357
15,781
20,017

827,386,652
119,828,627
32,841,901
17,166,173
16,731,812
8,362,176
24,531,000
14,452,657
10,040,514
24,041,003
9,988,879
8,651,757

3,012 82,226,271
16,506 7,259,097
2,316
1,826,072
785
288,232
390
184,456
688
810,919
1,475,000
3,029
1,408,199
4,490
84,065
3,307,000
315
166,674
1,382 8,023,068

334,787

314,623,152
283,938,810
220,732,251
182,303,483
176,410,219
197,489,674
174,236,737
160,680,956
127,648,503

33,806
30,426
26,797
23,492
19,533
19,100
16,344
15,925
12,582

293,742
251,061
243,625
255,039
250,241
231,777

27,179,053
17,496,974
13,518,566
11,006,515
9,701,569
11,637,899
4,414,508
3,597,865
2,643,408

651
628
763
529
391
1,084
479
773
534
7,823
7,826
7,747
7,718
7,683
7,666
7,651
7,634

242
343
310
565
266
326
2,331
997
1,033
1,527
211
1,170
9,321
9,210
9,052
8,934
8,837
8,805
8,789
8,926
8,607

28

FEDERAL RESERVE BULLETIN.

JANUARY 1,1918.

CHANGES IN PRINCIPAL ASSETS AND LIABILITIES OF THE NEW YORK CLEARING
HOUSE BANKS SINCE APRIL, 1917.

Between the weeks ending April 7 and December 15 of the present year average weeklyloans and investments of the 59 banks, members of the New York Clearing House Association, increased by about 1 billion dollars from
3,639.2 millions to 4,638.5 millions, as shown
in the tables below and accompanying diagrams. During the same period average net
demand and time deposits as shown in the body
of the weekly clearing-house statement show a
decrease from 3,913.5 to 3,768.8 millions.
These deposits are, however, exclusive of
Government war-loan deposits, and in comparing the movement of the items the increasing volume of these Government deposits
should be considered. These deposits first
assumed importance during May, reached a
total in excess of 300 millions after the completion of the first Liberty Loan, and fluctuated
between 150 to 200 millions during the summer until the latter part of September.
Further Government financing in connection
with the second Liberty Loan apparently
accounts for the more recent increases, the
high level of 966 millions for the week ending December 8 following the issue of the
latest series of 691.6 millions of certificates of indebtedness. Considerable net
withdrawals of Government deposits are noted
for the subsequent two weeks, the latest figure




(for the week ending December 22) being
538.7 millions below the maximum of 966
millions shown for the first week in December.
Curve 1 in the first and third diagrams, indicating the movement of average loans and
investments, is seen to cross beyond curve 3
(indicating the movement of average deposits
including deposits on Government account)
during the latter part of June following the
consummation of the first war loan, falling,
however, below the latter at the beginning of
July and moving on a lower level during the
subsequent months. Since October 20, i. e.,
the time of the consummation of the second
Liberty Loan, the loan and investment curve
has been running continuously above the average deposit curve, though for the more recent
weeks the excess of loans and investments
over total deposits has shown decreasing
amounts.
Separate figures and diagrams are given for
clearing-house banks which are members of the
Federal Reserve system and for those which
at the various dates were outside the system.
A glance at the second diagram indicates
somewhat the intensity of the movement
into the system on the part of the larger trust
companies and State banks in Greater New
York. This movement may be said to have
fairly started only on October 6, when the
Guaranty Trust Co. joined the system.

1, 1918.

29

.FEDERAL RESERVE BULLETIN.

Average loans and investments, deposits, cash in vault, and excess reserves of the members of the New York Clearing House
Association since week ending Apr. 7, 1917.
Loans, discounts, investments, etc.
1
2
3 "
Week ending—

Apr.

7.,
14...
21..
28..
May II,.
' 12..
39...
26..
J u n e 2..

Non members
of J10 KertpraJ
'Reserve
System.

Total.

Net demand deposits and time deposits.

Members of
the Federal
Reserve
System,

i(C

15..
22..
29..
Oi:t. 6..
13..
20..
27..
3..
30..
17..
24..
Dec.
1..
8..
15..
22..

Cash in vault.
10

Weekending—

7.
14.
21
28.
M:iy 5.
12.
19.
28..
2
9
16
23
30
faly 7
14
21
28.
4
11
IS
Sept.

Oct.

Dec,

1
15.
22..
29.
6.
13.
20.
27.,
10...
17.,
24..
1.

15..
22..




~8

Non mem bars
of i.lio Federal
i.'esene
System,

Total.

Members of
the Federal
Kescrve
I System.

539,773,0C0 131,373.683,000 S3.913, 456.000
S2,298, 297,000 S3,340.,907,000 "3,639,204, 000
2.321. 0X2,000 lsw
. ; 009.000 3,674,091. 000
542,395.000 1,393.596,000 3,935,,991,000
2,30!; 9-15,000 1,371. 581,000 3.673,526, 000
492,302', 000 1,413,840,000 3,900. 142,000
2,287, 948,000 1.39-), 979,000 3,078,927, 000
479,105; 000 1,439,417,000 3,918;,522,000
401,217,000 1,405,501,000 3,806, 718,GOO ?9,075,000
2,251, 600,000 1,373, 292'. 000 3,f»2-l,9S2. 000
375,021,000 1.374,486,000 3,749, 507.00(5 39,622,000 I
2,243. 428,000 1,338,,739,0f,0 3,5S2,167; 000
396,645.000 I', 379.058,000 3,776. 303', 000
2.2.S0, 311,000 1,341.,0X7.000 3,621.398" TOO
63,785.000 !S2o,882,000
435.911,000 1.397;635.000 i 3,833, 546,000
2,313. 391.000 1,35<5, 62*', 000 3.670,019, 0(10
49,598,000 16,923,000
434,062,000 i;374,936,000 i 3.809, 598,000 91,792,000 ! 23,679,000
2.354. 553,000 1,364 ,093,000 3l718,616, 000
2,402, 401,000 1,344. 958.000 3,747,359, 000 ! 2) 448,618.000 1,345,367,000 3,793, 985,000
73,909,000 ! 20,162,000
2,451, 509,000 1,349. 703,000 3.801,272', 000 i 2, 411,191,000 1,331,743,000 3,745, 934.000 109.401,000 ! 31,787,000
99;383.000 1 33.149.000
2.4SR, 510,000 1,325. 095,000 3,813,611, 000 j 2, 3lK,306,000 3,288,508,000 3,606, 814',000
2,471. 511,000 1,353,,558,000 3.825,069, 000 ! 2, 302.855,000 1,305,0(53,000 3. (507, 918,000 151,284.000 60.160,000
381,602.000 1,294,725,000 3,670 327,000 207,320', 000 95', 476,000
2,482; 878,000 1,370. 137.000 3.853,015, 000
499,562,000 1,320,183,000 3,819, 745,000 127,719.000 621412,000
2,502, 142,000 1,366; 252,GOO 3,868,394, 000
375,060,000 1,333.204,000 3.708, 204,000 100,028', 000 SO', 308; 000
2.437, 579,000 1.369, 685,000 3,807,264. 000
430,651,000 1,331,343,000 3.767, 994,000 100,863,000 48,279.000
2,4.17, 083,000 1',35-i, 597,000 3,771,680! 000
400', 303,000 1,333,0-12,000 3,793, 405,000 100.960,000 48,853,000
2.388, 951,000 1,363..794,000 3,752,745, 000
,322,000 3,795,9S9l 000 i 2, 480,450,000 1.324,202.000 3,801 652,000 103.258,000 41.448,000
I 2,441, 607,000
I 2,507, 685,000 T.343, 252,000 3,850.917, 000 I 2, 425,802,000 ll299.201,000 3,725, 003,000 155,996,000 49,226,000
.! 2,478, 427,000 1,337. 922.000 3S 816; 349, 000 ; ", 423', 684.000 L305; 607,000 3,729, ,291,000 131.412,000 38,642,000
i 2,511, 485.000 1,33/, *J23)000 3,849.40S. 000 i 2, 460,1I0! 000 3.30(5,408,000 % 7(Kil 518,000 1! i. 763,000 33.784.000
! 2,529. 532;000 1,321, 121), 000 3.850) 052, 000 I 2, 422,972,000 5,290,021,000 3,712. 993,000 130;041,000 3i; 477', 000
! 2.4«fi, 991,000 1,321,,2Sa, 000 3,808.270. 000 ! 2. 412,552.000 1,305,582.000 3.718; 134,000 ; 125,052,000 28,503,000
j 2,545. 370,000 1.329,,5P9,000 3i 874,965; 000 i 2, 415,524,000 1,278.224,000 3. 093, 718,000 i 209.901,000 52", 196,000
' 2,577. 468,000 1,318, 412,000 l\ 895,880. 000 j 2, 454,225,000 1', 277.731,000 3', 731, 956,000 ' 185,251.000 39,234,000
i 2,(535, 421,000 1.326, 000.000 3,961,424. 000 I 2, 471,760.000 1', 288.460. COO 3,7(53,,220,000 193,903,000 41,855,000
i 3.077, 813,000
' 911, 802', 000 I 3,989,615', 000 | 2, 914,308,000
'889.51.5. GOO 3,803,,853,000 185,(571,000 14,791,000
! 3,150, 210,000
921, 184,000 4,071,430. 000 i 2, 970.1195,000
897;304; 000 3,873,,599,000 174,030,000 17,959,000
672. 883.000 4,174,02(5) 000 ! 3, 350)9X9,000
i 3 v 501, 143,000
648,090', 000 3,799.,079.000 301,631,000 14', 888,000
013,000 4,510,385, 000 i 3, 35 L, 720,000
! 4,040. 372,000
443,111,000 3,791, 831,000 539,260,000 19,222,000
744.000 1.556,056, 00!) ! 3, 399.000,000
; 4,117, 312.000
414,934.'. 000 3,813,,934,000 5l»3,Otf4,G0O 19,499,000
300. .013.0C0 4,622.3J1. 000 I 3, 549,524.000
i 4,321, 698;000
271.885; 000 3,824.,409.000 (331,390,000 16,276.000
200! 05 5.000 4,691,58-1, 000 i 3, 461,335,000
! 4)4S0, 910,000
275,506,000 3.(53(5,,901; 000 859,883,000 11,219,000
192! , 483'. 000 4,030,514, ooo | 3; 508,705,000
! 4.444; 031,000
166,800,000 3,675,,505.000 .751,706,000 10,443,000
8,245,000
189'. 6!0;000 4,869:353, 000 1 3; 570,914,000
! 4,(579, 753,000
165,017,000 3,735,,931; 000 957,765,000
4,638',
544,
608,433,000
4,622,000
181',
,759,000
000
!
3,
3.768.,775,000 746,715,000
160,3:2,000
i 4,456, 785,000
3,221,000
180, ,809,000 4.173,340, 000 I 3, 539,325,000
160,959,000 3,700,), 284,000 424,120,000
! 3>2 477,000

23..
30..
July 7..
14..
21..
28..
Vug.
4..
11..
18..
25..
1

Apr.

Special Government deposits.

5

Members of
tho Federal
Reserve
System,

Non members I
of the
Federal
Reserve
SyFtcin.

5339,961,0GO
326,965,000 *3 S ! 371)1000
303', 175, ()00 168.3-12,000
278,972,000 171)182,000
2071 iOO, 000 155.297,000
270; 253,00') 362) 540,000
286,145,000 179.5261000
261)861,000 182.771)000
285,780.000 K531351,000
242,03(5.000 150,812,000
213;798i000 14(5,211,000
176,939,000 129,902, (.500
127,811,000 142,762,000
101,033,000 14.8,453,000
110,207.000 136,014,000
97,452; 000 135,785,000
99,615,000 15!, 71(5,000
95,219,000 135,468,000
92,745,000 135,732,000
91.114,000 131,117,000
87,166,000 127,(53(3,000
84,938,000 115,61(5,000
75,910,000 109,369,000
80,232,000 104,542,000
80,315,000 100, (5(50.000
83,898,000
92)944; 000
86,955,000
84,85(5,000
97.612,000
65,489,000
1(K>; 814,000
62,240,000
97,034,000
52,025,000
101,592,000
38,097,000
102,543,000
361917,000 i
112.884,000
29,597,000 I
113; 296,000
21,483,000
110,674,000
20,111,000
110,027,000
20,099,000
110,480,000
19,280,000
108,578,000
19.898,000

81939—18-

Reserve in depositaries.
12

13

Total.

I Cue from the
I Federal lie! servo Banks.

8498.884,000
496)34-1,000
471,517.000
450.154; 000
4221(597,000
43:?; 793,000
4(55,67 i, 000
447,(^2.000
419,131,000
302,848,000
360,000,000
306,891,000
270,573,000
250,086,000
24(5,221,000
233,237,000
251.331,000
230)687,000
228,477,000
222; 261,000
214,802,000
200,554,000
185,279,000
184,774,000
180,975,000
176,842,000
171,811,000
163,101,000
103,051,000
119,059,000
139,(589,000
139.4(50.000
142)481)000
134,779,000
130,785,000
330,126,000
129,772,000
128,476,000

§233,558,000 558,990,000
227,962,000
(51,342,000
220,913,000
61,931.000
218.928,000
63,007)000
2171128,000
61,320,000
244) 07H, 000
60,352,000
237,512,000
(50,2(54,000
252,86-1,000
61, Cl 7,000
229,202,000
60,251,000
23?., 099,000
58,978,000
247,992,009
58,355,000
206,860,000
5(5,02(5,000
335,034,000
5(5,94(5,000
419,748,000 I 5(5,(514,000
410,841,000 I (53,414,000
353,102.000 I 65, 732,000
411,733; 000 i 65,820,000
4~ft, 487,000 j 70,230,000
425,419,000 ' 6(5,354,000
302,227,000
62,286,000
370,999,000
68,943,000
3(55, (588,000
77,1(55,000
349,875,000
80,077,000
363, ?97,000
97,335,000
383,397,000
86,838.000
371,747,000
91,407)000
380,403,000 112,387,000
454,144,000
71,7S3,000
457,772,000
76,272,000
451,292,000
52,927,000
476,110,000
31,800,000
501.016.000
31,779,000
519,993,000
16,823,000
519,905,000
10,191,000
552,59f>, 000
9,377,000
568,067,000
9,038,000
575,449,000
8,535,000
522,859,000
8,703,000

Total.

89,075,000
33,622,000
89,667,000
66,521,000
115,471,000
04,071,000
141,188,000
131,532,000
211,444,000
302,796,000
190,131,000
150,396,000
149,142,000
149,616,000
'144,706,000
205,222,000
170,084,000
151.547,000
1 fill 518,000
153,555,000
262.097,000
224,485,000
235,819,000
200,465,000
191,989,000
316.522,000
558,482,000
583.163.000
647,666,000
871,102,000
762,149,000
966,010,000
751,367,000
427,347,000

Excess reserves.

8292,548,000 5324,000,610
j 289,304,000 105,278,420
83,899,070
' 282,844,000
90,181,5(50
311,935,000
278,418,000
60,884.130
304,428.000
95,319) (580
] 207,776l000 100,837,300
87,825.810
I 3n,4si;or.o
81,950,910
I 289,453,000
42,385,130
! 292,077,000
35,304,8,30
306,347,000
33,75(5,730
322,805,000
5(5,006,430
391,980,000 218,524,410
47'i, 362,000
92,932.340
474,255,000
52.062,800
418,834,000 102,599,470
477,5^3,000 141,659,710
523,717,000 111,2(54,800
491,773,000
54,934,940
424,513,000
63,879,180
439,942,000
53.810,200
42)489,440
. 442,853,000
429,852,000
57,457,840
! 4(50,832,000
76,906,880
! 470,235,000
60,285,850
i 4(53,154,000
66, (595,300
! 492,790,000
87.907,3(50
! 525,927,000
83; (594,550
!
58,121, 430
' 534,044,000
58,429,300
504,219,000
i 507,910,000
78,468,700
! 533,395,000
79,094,880
" 5315,81(5,000
90,830.950
530,095,000 117,141; 050
5(51,973,000 123,154,180
577.105,000 125,083,010
81,249,760
583,984,000
531,562.000

§24,532,130 §148,532,740
33;977,280
139,255.700
30,882,950
114,7821020
123,924;850
31,742,790
79,602,260
18,718,130
123,983,790
28,6(54,110
346,623,340
45,790,950
133,S75.980
46.050,170
113. S3 6) 820
28)865,910
GO', 049,190
18,5(54,060
50,102,080
14,797,250
3(5,707,950
2,951,220
71,097,880
15,091,450
241,310,570
22.78(5,130
106,291,310
33,3.^S,970
65,153,550
13,090,750
132,038,080
29,438,610
158,892,340
17,232,030
126,080,660
14,815,860
65,192.080
10,257,140
76,151)330
12,272,(550
62,537,510
8,727,310
50,046,030
7,556,590
75,765,440
18,307,600
85.324,020
8,417,140
66)005,030
5,719,180
82,911,010
16,215,710
98,03(5,660
10,729,300
94,942,800
11,248,250
67.411,290
9,289,850
62) 405,050
3,975,750
6,109,580 I 84,578,280
3,981,850 k 83,076,730
2,327,910 "' 93,158.8(50
118,805,340
1,(561,290
124,(581,220
1,527,040
12(5,100.990
1,093,780
82.932,140
1,682,390

80

Xi'EDEKAL BESEBV.K BULLETIN.

AHS 1,191.8.

INFORMAL RULINGS OF THE BOARD.
Below are 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:

commodity paper for rediscount so that staple
perishable food products, such as butter, cheese,
eggs, poultry, frozen fish, etc., carried for seasonal periods in cold storage under negotiable
warehouse receipts, may be made eligible.
I beg to say that papers of this kind would be
I eligible if offered with the indorsement of a
j member bank at the usual rate for 90-day comTrade Acceptances,
| mercial paper. The so-called commodity rate
I have received your letter of December 13, 1 was established some time agp in order to give
inclosing a copy of a letter from a member of a preferential rate particularly to farmers durthe Trade Acceptance Council.
ing the crop moving-season In view of the
The Federal Reserve Board has ruled on fact, however, that the present time and presseveral occasions that a bill of exchange ent circumstances do not warrant any particudrawn by the seller of goods and accepted by lar preference of this sort, the commodity rate
the purchaser of those goods is a trade accept- has been abolished for the time being and has
ance, regardless of whether or not the purchaser been merged with the general commercial rate.
intends to resell the goods or to use them for I ought to add also that this commodity rate
his own purpose, and that, therefore, a retail was granted only in such, cases where the bordealer may finance the sale of his goods to a rower gave an undertaking that he had adretail customer by means of the trade accept- vanced the money to the farmer at a rate not
ance.
exceeding 8 per cent.
DECEMBER 15, 1917.
The Board believes, therefore, that a bill
drawn by a retail dealer on his retail customer
to finance the sale of goods to that customer is
a trade acceptance within the meaning of the Loans on City Real Estate.
Board's regulations, even though it is drawn
The Federal Reserve Board has considered
after the purchaser has failed to remit promptly
the questions presented in your letter with
on an open account.
The Board is also of the opinion, however, reference to the right of national banks not
that to attempt to use the trade acceptance located in central reserve cities to make loans
in this manner as a means of liquidating an on city real estate.
The Board has heretofore ruled that the
otherwise slow account would involve considerable danger to the primary purposes of the provisions of section 24 of the Federal Reserve
trade-acceptance movement, and would sub- Act authorize a national bank to purchase or
ordinate the trade acceptance to the open discount a mortgage on city real estate, proaccount by suggesting it as a last resort for vided its maturity is not more than one year.
bad debts. While, therefore, trade accept- The Board has also ruled that a national bank
ances of this character should probably be may discount a note payable within a year
considered eligible as a matter of law, neverthe- secured by a mortgage or mortgages with a
less member banks and Federal Reserve Banks maturity greater than a year. (See ruling of
should be encouraged, to discriminate against the Board" printed on page 602 of the Novemthem as far as possible for the reason just ber, 1916, Federal Reserve Bulletin,)
With reference to the last question which
stated.
you present, namely, whether a national bank
DECEMBER 24, 1917.
may invest in mortgage certificates issued by a
trust company as the direct obligation of that
company and secured by mortgages, I wish
to say that if the security for the trust comPerishable Food Products.
pany certificate is another note which in turn
I have your letter of December 12, and the is secured by real estate, then, under the deinquiry made therein whether it is possible cisions of the Supreme Court, the loan is
to amend our regulations on the eligibility of authorized by law, on the ground that it is a




31

.FEDERAL EESEKVE BULLETIN.

1918.

loan on personal security, and not a loan upon the member bank accepting a bill and by the
the security of real estate, so that the question Federal Reserve Bank to which it is offered, for
of whether or not a national bank may invest discount.
in such mortgage certificates does not involve | If the borrower exercises such control over
a construction of section 24 of the Federal | the corporation issuing the warehouse receipt
Reserve Act, which authorizes loans upon real ! as to give him control over the goods in storage.
estate. Of course, transactions should be | the purpose of requiring a receipt of the indemade in good faith and not merely for the pur- pendent warehouseman would be defeated.
of technically evading prohibition of the | The corporation issuing such receipt must be
{)ose
aw. If, however, the mortgage certificate is | organized in good faith, as an independent corsecured directly by a mortgage or deed of poration, and its affairs must be administered
trust on realty, than the provisions of section by duly authorized officers and agents inde| pendent of the borrower in order to comply
24 would have to be complied with.
! with, the rulings of the Board referred to.
DECEMBER 18, 1917,
!
Warehouse Receipts.
(To a Federal Reserve Uanlc.)

NOVEMBER 30,

1917.

j Revenue Stamps on Time Drafts.
(To a Federal Reserve Batik.)

Receipt is acknowledged of your letter of the
Receipt is acknowledged of your letter of the
23d instant, inclosing copy of a letter from the
president of the
National Bank of 1st instant, and in reply I would say that the
. In his letter to you the president of Commissioner of Internal Revenue has ruled
that a draft payable on arrival, or a draft paythis bank says:
"With a view to obtaining bank acceptances, able on demand after arrival of goods is, in.
some of our mills are taking out registration for effect, a time draft and must therefore have
their storehouses in their own name, and some revenue stamps affixed. Your attention is
others are organizing their clerks and book- called to the fact that a draft drawn payable on
keepers as separate corporations to register. arrival of goods is open to serious doubt as to
This last is a mere subterfuge, and yet the its negotiability, It seems preferable, thereclaim is made that warehouse receipts of the fore, that banks should have their customers
latter are more favorably considered than the drew such drafts simply as demand drafts
which are not subject to a stamp tax. There
first."
does not seem to be anything to prevent a bank
You ask to be o,dvised as to the attitude of from
giving in its letter of transmittal such inthe Board in this matter. While the Board
as it may see fit as to the presentadesires to encourage in every way the creation | structions
tion
or
holding
of the draft,
of a proper discount market for acceptances
D E C E M B E R 4,
1917.
and the use of this form of negotiable instrument, it desires the banks to carefully observe
the spirit as well as the letter of the law in developing this market. The Board has hereto- I Election of Branch Bsiik Directors.
fore ruled that warehouse receipts offered as I
(To a Federal Reserve Agent.)
security for bills accepted by member banks
under authority of section 13 of the Federal ! The Board has ruled that directors of the
Reserve Act must be issued by warehouses I branches of Federal Reserve Banks should be
which are independent of the borrower. It i elected annually, and you are requested, thererecognizes the separate entity of a corporation I fore, to bring this to the attention of your diissuing the receipt when, such corporation is rectors at the next meeting in. order that they
not itself the borrower. Where a corporation i may reelect those branch l>ank directors which
is formed, however, as a subterfuge for the pur- i are chosen by your bank or make such changes
pose of evading the spirit of the Board's ruling, as may be deemed proper.
this fact should be taken into consideration txv
DECEMBER 18, 1917.




82

FEDEBAL RESERVE BULLETIN.

JANUARY 1,

1918.

LAW DEPARTMENT.
Under section 3477, Revised Statutes, these
The following opinions of counsel have been
authorized for publication by the Board since vouchers, which represent claims against the
Government, are not assignable. After the
the last edition of the Bulletin:
delivery of the goods to the Government, thereDrafts drawn to finance sales to the "United States Govfore, the holder of the obligation of the seller
ernment.
would have recourse only against the seller on
Drafts drawn in connection with sales to the United
the note or bill executed by him. This being
States Government of lumber or other material can not be
treated as bills of exchange drawn against actually existing true, such paper would not comply with the
value and are subject to the limitations of section 5200, requirements of commodity paper and would
Revised Statutes, when discounted by national banks. not be entitled to the rate of discount preSuch drafts do not conform to the requirements of com- scribed for such paper.
modity paper as defined by the Federal Reserve Board and
Inasmuch as the claim of the Government is
should not be discounted at the rate prescribed for such
not
assignable and a note or bill executed by
paper.
the
seller
will, therefore, embody the obligation
NOVEMBER 30, 1917.
of
the
seller
only, such notes or bills could not
SIB: The accompanying letter transmits for
be
treated
as
commercial or business paper
your consideration an inquiry received from
actually
owned
by the person negotiating the
one of the member banks of the Fifth District
same
or
as
bills
of exchange drawn against
to the following effect:
actually
existing
value. They would, there"A certain company is selling the Governfore,
be
subject
to
the limit of 10 per cent prement a large amount of supplies. Could we
scribed
by
section
5200,
Revised Statutes.
loan them on these sales under the head of
The letter suggests that the matter be taken
commodity paper, and would this be subject to
up with the Treasury Department for the purthe 10 per cent limit?"
The opinion of this office has been asked on pose of determining whether in such cases a
warrant or other obligation may not be issued
the questions raised.
Commodity paper is defined in Regulation A, by the Government which would aid those who
series of 1917, as "A note, draft, bill of ex- are furnishing supplies to finance themselves
change, or trade acceptance accompanied and through their own banking institutions.
In reply to this suggestion attention is called
secured by shipping documents or by a warehouse, terminal, or other similar receipt cover- to circular letters of the Board sent to Federal
ing approved and readily marketable, nonper- Reserve Banks and to Federal Reserve Agents,
respectively, under dates of March 21 and
ishable staples properly insured.''
While the attached letter is not specific on March 31, 1917. These letters, which appear
the subject, it is unlikely that the sales of the on page 288 of the April, 1917, Bulletin, will
Government are made or can be made in a make clear the difficulty in carrying out the
manner which will enable the seller to offer suggestion made.
Unless section 3477, Revised Statutes, is
paper representing the purchase price of such
sales in a form which will comply with the repealed or amended the War Department can
not issue a negotiable voucher for claims
requirements of commodity paper.
As understood by this office, the custom in against it.
such case is for the Government to require
Respectfully,
delivery of the goods and to subsequently issue
M. C. ELLIOTT, Counsel.
a voucher in favor of the seller for the amount
To Hon. W. P. G. HARDING,
due.
Governor Federal Reserve Board,




JANUARY 1. 1918.

FEDERAL RESERVE BTTLLETIK.

Sales corporations.
A draft drawn by a lumber corporation upon a sales corporation which it and a number of other lumber concerns
have organized will, when accepted, become a trade
acceptance, even though the selling corporation is a stockholder of the sales corporation, provided the latter is
organized in good faith and not merely to act as an agent
for the purpose of evading the law.
DECEMBER 12,

1917.

funds should not be treated as a trade acceptance within the meaning of the Board's regulation which defines such acceptance as "a
bill of exchange drawn by the seller or the purchaser of goods sold and accepted by such
purchaser/5
Respectfully,
M. C. ELLIOTT,

Counsel.

SIR: The accompanying letter presents the
To W. P. G. HARDING,
following situation for the consideration of the
Governor Federal 'Reserve Board.
Board:
I
A sales corporation has been organized in Farm loan bonds.
New York by eight large southern lumber con- Farm loan bonds are issued by Federal farm land bank;
cerns. These concerns, which are stockholders incorporated under Federal lav/, and are not obligations
of the United States, so that they are not eligible as colin the sales corporation; sell their lumber lateral for promissory notes of member banks.
through the sales corporation on a 5 per cent
commission basis. The lumber corporations
NOVEMBER 26, 1917.
draw drafts or bills of exchange against the
SIR: In the accompanying letter the Board
sales corporation, which accepts these drafts is asked whether or not in its opinion bonds
and offers them, for rediscount as trade accept- issued by a Federal land bank are eligible as
ances. The writer states that the business is collateral for a member bank's 15-day note.
conducted on a legitimate basis and that if the
Section 13 of the Federal Reserve Act proacceptances are not issued by way of credit in vides in part that—
excess of consignments they could be said to be j Any Federal reserve bank may make adissued against actual existing values,. He is vances to its member banks on their promisdoubtful, however, about this paper coming sory notes for a period not exceeding fifteen
strictly within the classification of trade accept- days * * * provided such promissory notes
ances and asks for a ruling of the Board on the are secured by such notes, drafts, bills of exchange, or bankers' acceptances as are eligible
subject.
for rediscount or for purchase by Federal ReIf the sales corporation purchased outright serve Banks under the provisions of this act,
lumber from the lumber corporations and ex- or by the deposit or pledge of bonds or notes
ecuted its acceptance or drafts in payment. of the United States.
Inasmuch as farm loan bonds are not bonds
these drafts might be treated as trade acceptances, although the selling corporation is a of the United States, but are issued by farm
stockholder of the sales corporation, provided, land banks incorporated under Federal law, it
of course, that the sales corporation is organized is clear that they do not come within the classiin good faith and not merely for the purpose of fication of securities acceptable as collateral for
evading the law. If, however, the sales cor- promissory notes of member banks.
Respectfully,
poration is merely the agent of the lumber corM. C. ELLIOTT, Counsel
poration and lumber is not actually sold to that
corporation, the draft of the lumber company j To Hon. W. P. G. HARDING,
Governor Federal Reserve Board.
against its agent for the purpose of procuring!




84

FEDERAL RESERVE BULLETIN.

JANUARY 1.1918.

Section 5200.
j In the opinion of this office these notes
If Bank A, which has discounted a note for one of its j should be treated as if they had been discustomers, later sells that note without recourse to Bank j
B, such note becomes subject to the limitations imposed j counted in the first instance by Bank B, and
should be held subject to the limitations of
by section 5200 so far as Bank B is concerned.
;

section 5200. They do not constitute a loan
by rediscount to Bank A, but by becoming the
SIR: The accompanying file has been re-j purchaser of these notes Bank B is merely subferred to this office for a consideration of the | stituted for Bank A, and, in effect, has made a
legal question raised. Briefly stated, the case !loan to the customer of Bank A.
presented appears to be as follows:
i
Any other ruling by your office would make
Bank A having discounted certain notes for \ it possible for any national bank to violate the
its customer subsequently sells these notes with- j provisions of section 5200 merely by acquiring
out recourse or without its indorsement to j
customers' notes through another banking inBank B. Query: Are such notes in the hands
stitution.
of Bank B subject to the limitations imposed
Respectfully,
by section 5200? That is to say, may Bank B
M. C. ELLIOTT, Counsel.
purchase such notes in an amount equal to
To Hon. JOHN SKELTON WILLIAMS,
more than 10 per cent of its unimpaired capiComptroller of the Currency.
tal and surplus ?




DECEMBER

12,

1917.

•!

FEDERAL RESERVE BULLETIN.

.rANTJAEY 1 , 1 9 1 8 .

SUMMARY OF BUSINESS CONDITIONS DECEMBER 23, 1917.
District No. 1Boston.

District No. 2-New York.

District No. 3 ~
Philadeiphia.

District No. 4-~
Cleveland.

G ood on war orders; Generally active; I Good.,
retarding on dosome lines very !>
mestic business.
quiet.
'

General business
Crops:
Condition.,
Outlook...

District No. 5—
Richmond.

District No. 6—
Atlanta.

Fairly satisfactory. Restricted only j Good.
I by supplies; re- '
I tail trade brisk. |

Fair
Good
!
Moderately favordo
do
Favorable.
able.
Industries of the dis- For the most part Generally active, War industr I e s Restricted output. Running full on !
D
with some exceptrict,
i busy.
very busy; busisat is f a c t o r y !
tions.
ness in other
basis.
;
lines failing off.
Construction, build- Nearly up to last j Dull
Big decrease from Rapidly declining Private building j Poor,
ing, and engineeryear, but because !
last year in Philin volume.
limited; large !
ing,
of war orders.
i
adelphia; some
volume Govern- .
increase in other
rnent work.
!
parts of district.
Foreign trade..
P r a c t i c a l l y un- Decrease
comLimited by restric-i
changed.
I pared with last
tions and scar- !
j month.
city of freight !
room.
!
Bank clearings
j Increase..
,i Very large, but Increase*.
Increase
I Increase.
Decrease.
i] slightly less than
record figures
i made in October.
Money rates
j Increasing..
Steady, at firm j Firm, with tend- Increasingly firm. Hardening: 6 per Steady.
rates.
i ency to increase.
i
cent current rate.
Railroad, post-office, Decrease, e x c e p t Heavy
.: Increase
Increase
Railroad, irrogu- j
and other receipts.
post office.
lar; post, office, I
volume largo.
Unsatisfactory
Labor conditions
Labor scarce and More settled..
Scarce and wages Fair.
Labor scarce
inefficient.
!
high.
" !
i Unsettled
Outlook
For expansion of Further a d j u s t- Unsettled
Some uncertainty, | Good.
industries engagments to war conbut
generally j
ed in war work.
ditions expected.
satisfactory.
:
Remarks.
Coal shortage a
Practically all bus- Inability of rail- Bank d e p o s i t s j
cause for grave
iness dependent
roads to take
high; strong de- j
concern.
on war condicare of traffic is
maud at full j
tions; solution
greatest drawrates.
j
of transportaback in business
tion eiuestion
situation.
would s o l v e
many difficulties..

District No. 7™
Chicago.
General business
Crops:
Condition
Outlook

Generally good

District No. 8-St. Louis.
| Good

Bank clearings

Very active with Very busy
few exceptions. |
Very dull
J Quiet

Money rates
Railroad, post office,
fuid other receipts.
Labor conditions"




Decrease from last
month and about
equal to same
period last year.

District No. 10—
Kansas City.

District No. 11—
Dallas.

District No. 12—
San Francisco.

Good

Good

Large volume.

Fair...
do.

Foreign trade

Hetr) arks.

Good

:. Good except corn.
Good....

rndostries of the district.
Construction, building, and engineering.

Outlook

District No. 9—
Minneapolis.

.j Active..

..j Good

.i Fair to good

. J Improving.

i
Increase

Little change

Very firm..
Firm
Post-office receipts No change.
increased.
Easy at this time.. Scarce and wages Fair
high.
" i
I Good
Good; scarcity of Good
materials, etc.,
only unfavorable
feature.
Fuel and transpor- i
tation conditions \
unsatisfactory. '•

Good increase
Steady to firm.

Increase.

Settled.
Very good

Good

| Lack ot-precipita*
! tioii.
.
! Active and us I parading.
Building opera- j Tending to dotions dull; Gov- j crease.
crnraont orders i
predominate. !
Decrease
| In dollars about 20
I per cent increase.
Increase
| About 30 per cent
I increase.

Active

Steady
Increase

j Firmer.
Increasing.

Some
unsettle- | More settled.
ment.
!
| Good
i For great activity.
i
Drought still seri- The definite tendency is to inously felt and
crease in industhose portions
tries contributof district report
ing to war and
unsatisfactory
decrease in othconditions,
ers.
t h o u g h good,
business in more
favored sections
tends to offset.

86

FEDEKAL KESEftVE BULLETIN.

JANUAKY 1, 1918.

GENERAL BUSINESS CONDITIONS.
tinue busy, with attention turned almost entirely to the needs of the Government. The
wool trade is hesitant, awaiting the outcome of
the new requirement necessitating the offering
to the Government of all wool imported if
purchased after December 15 at July 30 prices
less 5 per cent. There is a great difference of
opinion among the trade as to the effect on
prices of this regulation.
DISTRICT NO. 1—BOSTON.
Cotton-cloth prices remain very firm, owing
So many conflicting factors arising from the to increased production costs and the high
war are entering into the business situation price for the staple. Business is mixed, with
that it can not be said that the trend of business some mills reporting good inquiries and some a
is in any definite direction. In fact, there are ! much smaller volume.
now two distinct lines of endeavor apparent, ! Plain goods are much more active than
one devoted to the requirements of the war I fancies, and there are some inquiries for conand the other continuing on domestic trade. j tracts for January delivery. It is thought
The former is becoming increasingly active, j from this that the market is low on goods.
with demand pressing, while the latter is being | The print-cloth market is very strong, with
slowly retardedI prices advancing. The additional capital reThe coal situation is very acute, and unless ! quired to conduct business on the present high
relief is found many manufacturers will be | plane is a serious problem, especially to the
obliged to close. Public-utility corporations \ small manufacturer.
are reducing their service, and even house- I The money market has been exceedingly
holders are restricting their use of coal in this | firm during December, Payments on account
emergency. Economy is becoming more gen- ; of Liberty Loan subscriptions and withdrawal
eral, especially among those who have always of Government funds on deposit with qualified
been accustomed to luxuries and who are now banks, together with great activity in local
affected by continual demands for contribu- industries in connection with Government
tions in connection with the war.
: orders, has brought about a condition where
In addition, the stock and bond markets are banks have been able to meet only the neceslow, and even when their losses are only on sary demands of their customers. Banks have
their books the effect is to cause a restriction of availed themselves to a considerable extent of
expenditures. On the other hand, many peo- ! the facilities of the Federal Reserve Bank to
ple are making more money than ever before, ; care not only for commercial demands but also
especially the laboring class. It is this class ! for demands arising out of subscriptions to
that is doing the buying. Retail Christmas j Liberty Loan bonds. On call, money to
trade is spotty and not up to last year, with ; brokers is firm at 6 per cent; commercial paper
fewer luxuries being purchased and business ranges from 5 | per cent to 6 per cent with year
turning to useful presents.
money 6 per cent.
The boot and shoe industry shows no
The exchanges of the Boston Clearing House
change, with business of manufacturers, out- for the week ending December 15, 1917, were
side of Government orders, quiet. Retail busi- ; $298,274,211, compared with $280,152,120 for
ness is better, but this is attributed to Christ- the corresponding week last year and $287,400,mas buying. Woolen and worsted mills con- 525 for the week ending December 8, 1917.
There is given on the preceding page a summary of business conditions in the United
States by Federal Reserve districts. These reports are furnished by the Federal Reserve
Agents, who are the chairmen of the boards of
directors for the Federal Reserve Banks of the
several districts. Below are the detailed reports as of approximately December 23:




JANUARY 1,1918.

FEDERAL RESERVE BULLETIN.

Building and engineering operations in New
England from January 1 to December 12, 1917,
amounted to $195,943,000, as compared with
$201,259,000 for the corresponding period of
1916, the highest previous year recorded.
The receipts of the Boston post office for
November, 1917, show an increase of $119,021.35, or about 26 per cent more than November, 1916. For the first 15 days of December, 1917, receipts^were about 4 per cent,
or $21,702.17, more than for the corresponding
period of last year.
Boston & Maine Railroad reports net operating income, after taxes, for October, 1917, as
$1,185,265, as compared with $1,385,762 for
the corresponding month of 1916. New York,
New Haven & Hartford Railroad reports
operating income, after taxes, for October,
1917, as $1,874,774, as compared with $2,061,176 for the same month last year.
Loans and discounts of the Boston ClearingHouse banks on December 15, 1917, amounted
to $485,833,000, as compared with $501,874,000
last month and $440,560,000 on December 16,
1916. Demand deposits on December 15,
1917, amounted to $411,627,000, as compared
with $448,815,000 on November 17, 1917, and
$366,561,000 on December 16, 1916. Time
deposits on December 15, 1917, totaled $23,743,000, as compared with $25,560,000 on
November 15, 1917, and $30,210,000 on December 16, 1916. The amount "Due to
banks" on December 15, 1917, was $121,753,000, as compared with $153,431,000 on November 17, 1917.
DISTRICT NO. 2—NEW YORK.

Business developments during the past
month have been along the line of further curtailment of industries regarded as nonessential,
with continuation and increase of intense activity in the essential lines. Activity in lines
doing war work has led to the ready absorption
of labor released in lines which show decreasing
output and the general level of business
activity can hardly be said to have changed as
it has for months past been at full capacity.
In many cases factories have been able to




37

change their product to adjust themselves to
the war situation, a noteworthy instance being
found in the automobile industry where companies making both pleasure cars and trucks
have concentrated their efforts on trucks and
are running to fullest capacity, with orders
booked far ahead, so that their output is in
excess of the prewar production. Other
manufacturers, whose products are of a character likely to be considered nonessential are
considering ways and means of changing their
output to war supplies or goods of an essential
character.
A tendency to economy is now distinctly
manifest. Business in several lines which have
been active during the fall is now reported as
slightly depressed, particularly in such lines as
jewelry, cut-glass ware, clothing, dry goods,
etc. A quiet period is reported in the theater
business, ascribed to the public's realization of
the necessity for conservation of resources and
energy. A natural reaction has been the
neglect of the theater.
The effects of the economy movement, however, are not uniform among the lines that at
first thought would appear to be luxuries.
Dealers in confectionery, for example, report
excellent business up to date. Dealers in
groceries, wines, liquors, etc., report excellent
business. Lack of sugar alone has prevented
heavy increases in sales of candy. Sales of
wines and liquors to dealers have shown
abnormal increase, ascribed to their desire to
protect themselves prior to the imposition of
war taxes and to higher prices caused by discontinuance of distilling and import of highly
alcoholic liquors. Chain stores report steady
increases in business during the year, despite
increased costs of merchandise and shortage
of labor.
Sales of men's and women's clothing have
fallen off distinctly and the number of pairs of
shoes being sold is estimated at 20 per cent to
25 per cent less than a year ago, though the
money volume of sales holds up.
In the dry goods line, lessened activity is
reported, particularly in silks and woolens

38

FEDEEAL EESEEVE BULLETIN".

JANUABY 1,1918.

though sales of cotton goods continue strong, owing to labor shortage and inadequate car
with large orders for export. Silk has not supply are unable to ship anything like their
advanced in price to the same relative extent full capacity. A shortage of pig iron during
as cotton and wool and is being bought as a the next year appears imminent.
substitute, but, in spite of this and the larger
The demand for machine tools is in excess
volume of transactions in the volume of sales of manufacturers' capacity to produce, and
in dollars than ever before, the yardage sales regular commercial work has been almost
are smaller than last year. Silk production entirely put aside in favor of Government
now appears to be in excess of consumption orders.
and the price has dropped. There is a feeling
The course of the stock market has been
of depression in this line here, though sales are downward and stock and bond prices are at
reported better in the West, Middle West, and unprecedently low levels.
South.
Money market conditions during the last
The drug and chemical lines continue unset- part of November and the first three weeks
tled, with high prices and retarded consump- of December have been stable, with commertion, though the volume of business expressed cial paper selling at 5£ per cent to 5f per cent.
in money is maintained at high levels. Ina- Call money rates which were quite easy from
bility to receive and deliver goods is particu- November 23 to 28 advanced on November
30 to 6 per cent and, except for a few days in
larly troublesome in this line.
Narrowing profits are reported in the paper early December, have since been steady at
manufacturing industry, increases in the selling that rate. Rates for time money on stock
prices of paper having been more than offset exchange collateral have ranged from 5J per
by increases in wages and other costs of pro- cent to 6J per cent with little money offered.
duction. Difficulty is being experienced, also,
DISTRICT NO. 3—PHILADELPHIA.
in obtaining and transporting pulp wood.
Industries of this district engaged in proA reflection of the lack of activity in building is found in the reports of lumber dealers ducing supplies for war purposes have been
who state that an increasing proportion of running at as near capacity as possible. Other
their output is being devoted to supplying the industries, however, have felt to a considerGovernment or manufacturers having Govern- able extent the circumstances which are cutting down their output; the demand for their
ment work with lumber and box shooks.
In the metals trade, activity centers on product has decreased, and they have been
Government work. The demand for lead and unable to meet the wages which the munitions
zinc appears to have fallen below the supply factories offer, so their position is far from
and business is quiet in these lines. Steel satisfactory.
Reports that we have received indicate that
stocks during the past few weeks have shown
an increase, ascribed to ocean and railroad Christmas trade is rather disappointing and
embargoes, which have permitted the com- not up to normal. The impression is conpletion of domestic business instead of sup- veyed that shoppers have been influenced by
plying export tonnage. By far the greater the economy and conservation campaigns.
portion of the business received by the steel Furthermore, many merchants are not carrytrade is due to the activities of this Govern- ing as large stocks as has been their custom
ment and the allies. Though production of heretofore, owing to their unwillingness to put
pig iron is being pushed to capacity, serious in many goods at prevailing high prices and
handicaps are encountered through the dif- because of their inability, in many instances,
ficulties of transporting raw materials, par- to secure goods from the manufacturers.
ticularly coke, while the coke manufacturers, Many people are not buying Christmas gifts.




JANUABY 1, 1918.

The coal situation is now receiving nationwide attention. Coal is being mined in greater
quantity than ever before, notwithstanding
the shortage of labor, but shipments are curtailed by the inability to obtain transportation facilities. The situation has been considerably aggravated by the appearance of
early cold weather. Some manufacturing
plants have been forced to operate on a margin
of one or two days7 supply of coal. Retail
dealers are selling a limited amount to each
individual.
Advices concerning the movement of freight
by the railroads are conflicting, but the majority of the reports indicate that there has
been no material improvement and the situation is still bad.
Building operations have practically ceased,
except where absolutely necessar}^ There is
a decided scarcity of houses for working people.
It will not pay builders to erect houses for
renting at the prevailing prices of materials
and the uncertain conditions of labor, particularly if it is felt that it is only a matter of time
before there will be a material decline in rentals.
At the present time the building material
industries are considerably depressed.
The farmers are most seriously handicapped
by the scarcity of labor, and no remedy is in
sight. Owing to this difficulty the acreage of
winter wheat is not expected to be as great
as was hoped.
The prevailing prosperity of labor would
make it seem that calls on charity organizations would be very few this winter, but the
greater cost of food has resulted in the demand
for charitable help being as large as last year.
The total of the Christmas savings fum
carried by the banks in this district is upward
of $10,000,000, which is about $500,000 ahead
of last year. The number of depositors is
approximately 350,000.
Payments on account of Liberty loan subscriptions have caused a shrinkage in loanable funds, and money rates have been firm
as a result. Call money advanced to 6 per
cent and the rates for commercial paper to
5f per cent.




39

FEDERAL RESERVE BULLETIN.

Financial indicators.

December 17,
1917.

Philadelphia banks:
Loans
Deposits
Federal Reserve Bank:
Discounts and collateral loans
Cash reserve, per cent
90-day discount rate, per cent
Commercial paper, per cent

Bank clearings:
In Philadelphia
Elsewhere in district..

Per cent increase or decrease compared with—
PreLast
vious
month. year.

$588,129,000
640,987,000

+
+

- 4
- 5
34,819,052 + 116
49 - 26

+463
- 9

14

14
14*

November,
1917.

Previous
month

$1,532,681,531
99,531,560

-

Total,,
Port of Philadelphia:
E xports
Imports
_.
Building permits in Philadelphia
Post-office receipts in Philadelphia
Commercial failures in district (per
Bradstreet's)
,

8
2

Last
year.

2

+20
+11

1,632,213,091

- 3

+20

32,309,000
4,106,000
1,712,520
1,077,115

-49
- 8
-15

-22
-31
-62

+11

+30

165

i Actual.

DISTRICT NO. 4—CLEVELAND.

This is a period of readjustment and curtailment. Manufacturers are remodeling their
plants to make the essentials and are eliminating the nonessentials. Merchants report
many customers buying those articles which
are necessary to the support of life and leaving on the counters the unnecessary. The key
words are "essential" and "necessary." Along
these lines business is readjusting itself.
Business, except on Government contracts
and strictly necessary lines, is not good. The
manufacturing industries, such as glass, pottery, steel, etc., for domestic use, wait on transportation and labor, the controlling factors of
the situation. Until these two elements are
able to do their part, no decided betterment
can be expected.
Agriculture.—Winter wheat is reported doing
well. The heavy snows in most localities have
protected it from the severe weather. The
unmatured corn is being fed to cattle and hogs.
In many cases the farmers are purchasing from
the stockyards underweight and undeveloped
animals and fattening them with the unmarketable corn. By this means a profit is made
and the meat supply of the country increased.

40

FEDERAL BESEEVE BULLETIN.

JANUARY 1,1918.

The cold weather has retarded the marketLabor.—Generally both skilled and common
ing of the tobacco crop, and it is not as yet well labor continue scarce and exacting. In one
under way. However, it is selling at the high- quarter there was reported unemployed labor
est price in its history, and should soon relieve occasioned by the shutting down of a large
any money stringency in the tobacco districts. plant engaged in the manufacture of nonManufacturing.—The output in many lines essentials. This, however, is the exception,
is being curtailed by the transition from regu- and in this instance employment was soon given
lar activities to the making of strictly war in the same plant, it having been remodeled to
goods, by the increasing strictness of Govern- accept Government contracts.
mental requirements whereby nonessentials are
Women continue to take places in the labor
sidetracked, and by the shortage of coal, coke, world formerly occupied exclusively by men.
labor, and transportation.
They are said to do the work satisfactorily.
The rumor of lower prices for the beginning Employers and employees are gradually adof the year in the steel business has unsettled justing themselves to the changed conditions,
the market and confined buying largely for the and, as a whole, there is believed to be a slight
account of the Government. Orders on hand improvement.
are in fair volume, and Government orders are
Building operations.—The severe cold
increasing.
weather has interfered with building operaThe clay industry is very quiet, and ship- tions. The demand for dwellings is still strong,
ments are about one-third the volume of last but the cost of materials deters contractors
year.
from attempting new projects, and conseThe coal trade is badly handicapped by lack quently the line, with few exceptions, shows a
of cars. In some quarters mines have been steady decline in volume.
compelled to close down on this account.
Money and investments.—The money market
Mercantile lines.—Jobbers for the most part is firm. Legitimate business is experiencing
are experiencing the usual holiday slackening little difficulty in securing funds for financing
in trade, and orders are of the "fill-in" variety. its normal needs. Banks, however, report that
In the retail trade Christmas shopping holds money for speculative purposes and those not
the way and promises to exceed last year's in harmony with the spirit of the times is not
business in money value. In many quarters advanced. It is probable that the demand for
it is reported that purchases are confined largely money reached its peak the week of Decemto those articles which are useful and neces- ber 15.
sary rather than to decorative novelties and
Investment markets are lethargic and continue to give the right of way to Government
the unnecessary.
Collections.—Collections are reported prompt finance.
The rediscount demands with the Federal
and satisfactory, probably partly due to scarcity of goods, prompt payment being a requi- Reserve Bank of Cleveland from member banks
are very heavy, as the appended comparative
site for securing future consignments.
Increases in wages and unusually large pay table will show.
rolls at this season of the year should continue Rediscounts during second Liberty loan, 1917:
Nov. 15
$18, 938, 681. 00
to keep collections at normal.
Dec. 1
31,880,178. 38
Transportation.—In some localities the car
pec. 15
49,117,574.12
shortage is very serious, compelling the closing Rediscounts during same period last year, 1916:
Nov. 15
$289,656. 06
of mines and factories and causing hardships
Dec. 1
245,805.71
and discomforts in many places from lack of
Dec. 15
1,477,077.53
fuel and necessary foodstuffs.
Rediscounts during first Liberty loan, 1917:
Railroad officials are hopeful concerning the
June 15
$3,524,117.20
situation and believe that traffic conditions will
July 2
9,098,426.51
July 16
7,423,364.84
be ameliorated.




JANUARY 1,1918.

DISTRICT NO. 5—RICHMOND.

FEDERAL BESEEVE BULLETIN.

41

cent, and deposits in banks are high. The emThere is little change in local conditions and bargoes on freights, however, particularly at
activities in the district during the past month. the ports where cotton shipments are largely
Reports indicate irregular and in some cases handled, are creating a large demand on the
adverse conditions as heretofore, mixed with banks for financing. Shipments are delayed in
singularly general prosperity. The people in coming in and have to be financed until arrival,
general appear to be well supplied with and are slow in going out, resulting in delay in
money and retailers particularly have had a realizing on them. These conditions, coupled
demand for goods in excess of available sup- with Government financing, referred to above,
plies. Food products in some lines are only have resulted in hardening rates and the active
in limited supply, but there has been no real employment of banking resources, suppledeprivation, and the current discussions on the mented by borrowing to a very considerable
subject have bordered on exaggeration, to say extent from the Federal Eeserve Bank. Loans
and discounts in the bank have reached the
the least.
Agricultural activities are naturally at a highest figure ever attained.
Supplementing the appeal of the President
standstill at this season, and unprecedentedly
severe weather, even for this time of the year, to State banks and trust companies to become
a heavy fall of snow being one of the accom- members of the Federal Reserve System, all
panying features, has brought serious discom- banks in the district have had the matter urged
fort and has interfered considerably with trans- upon their attention. This is being followed
by personal correspondence direct from the
portation and general activities.
National financing has been the most impor- bank, and from a committee of the American
tant factor dealt with during the month, both Bankers' Association and the State Council for
in discussion and in its practical bearing on the National Defense. This has aroused some infinances of the district. The unavoidable delay terest among nonmember banks, several of the
in the delivery of the definitive Government largest banks and trust companies in the disbonds, due to the unprecedented task involved trict have joined the system, and other appliin the printing and physical preparation of cations are anticipated. We quote the followthem, has apparently increased to a consider- ing from a circular recently issued by the comable extent the borrowing necessary in the missioner of banking in one of the States of
financing of them. It has apparently delayed our district:
li
and interfered with the distribution and final
As I view it, the matter is both a patriotic
absorption of them, but subscribers should ap- duty and an economic expediency. Aside from
preciate the difficulties attending such enor- the great need at this time for an efficient
mous and unexpected financing, and regard any mobilization of the banking resources to fortify
Nation in meeting extraordinary war conlittle inconvenience they may have suffered, our
ditions, in my opinion, membership^ going to
and which has been absolutely unavoidable, as prove very helpful in solving future problems
a part of the self-sacrifice all are called on to and meeting contingencies that are sure to
arise during the readjustment period after the
make.
The industries of the district are actively em- war. Just now our Nation and the Federal
Reserve System need the support of the banks;
ployed, production only limited bj scarcity of later the banks are going to need the support
supplies and labor. There is a general tend- of the system, and now is the time to make
ency to economy and thrift, although the view the alliance.77
is expressed in some quarters that high wages
have had a tendency to increase food consump- DISTRICT NO. 6—ATLANTA.
There has been no unusual developments
tion among wage earners.
Collections are reported good; clearings con- i in the general business situation of this district
tinue to indicate an increase of about 27 per I during the month of December. Reports from




42

FEDERAL BESERVE BULLETIN.

JANUARY 1,1918.

all over the district indicate a heavy Christmas operating companies recently announced additrade, and the district enters the new year tional expenditures [of $11,000,000 for their
under the most prosperous conditions and with shipbuilding project near Mobile.
the brightest prospects.
The labor situation, while somewhat acute in
The closing of the second Liberty Loan and certain parts of the district, has improved in
the payments of installments appear to show the coal mining district. Quite a number of
but little disturbance in financial circles. the negro miners have returned from the northLarge expenditures of the Government for ern fields.
Generally speaking, the industrial expansion
materials and provisions incident to supplying
the many Army camps in this section largely is limited only by productive capacity and
offset the withdrawal of funds on account of transportation facilities.
Liberty bond sales.
The exceptional cold wave during the latter DISTRICT NO. 7—CHICAGO.
part of the month interfered considerably with Business in practically all lines is moving at
general business, and especially with transpor- a rapid pace and the principal factor is the
tation, and general products and fruits have scarcity of the essentials of labor, transportareached higher price levels. The weather, tion, fuel, and materials. A few industries,
however, has proved very favorable for the however, through the lack of fuel and material,
killing and packing of meats for winter use, have been compelled to cut down their workand the farmer is better prepared in this respect ing force. There is little effort for new busithan in former years. The sugar refineries at ness, as concerns are working at capacity to
Savannah, which have been closed on account turn out that which comes to them unsought.
of the inability to procure the raw supplies, are Holiday trade will probably [be less than
expected to resume operations after January 1, usual.
when the new crop of sugar from Cuba will
The investment market has been narrowed
begin to come in. The citrus crop will be to such an extent that adjustments looking to
short, being estimated at 3,500,000. The reduction of forces are taking place. Investfreeze last spring reduced the crop of celery in ment activities are practically confined to
Florida from 25 to 30 per cent, cutting down short term corporate notes and municipals.
the average yield to 500 crates per acre. This It is reported that the large November and
year the acreage is somewhat below that of December maturities in investors7 hands have
last year, but with an ordinary year the yield been satisfactorily met. The corn crop is in
will be greater.
itself a great disappointment, though there is
The one item of special interest in the indus- some solace in the fact that this condition has
trial activities is the growing shortage of coal. augumented, to a considerable degree, the
At several of the largest centers a number of the feeding of live stock. Heavy snow has been
schools have been forced to close, and we have decidedly favorable to winter wheat and rye.
reports of one or two large plants being shut Cold weather has, if anything, operated to the
down on account of lack of fuel. Miners and improvement of the corn situation. Large
operators in the Tennessee field and also in the acreage of winter wheat is reported. The bean
Alabama field recently held conferences and | and potato crop is not being freely marketed
appear to have made general headway toward I owing to transportation difficulties.
a satisfactory agreement, and some relief from j Money rates are expected to remain hard
the shortage of coal is promised.
I indefinitely, due to Government financing,
The proposed establishment of Government! immense business activity, and soft corn situanitrate plants and powder mills at Mussel tion which brings the farmers to the banks as
Shoals, in northern Alabama, has created un- borrowers at a time when they are usually in
usual activity in that section. One of the large funds.




JANUARY 1,1918.

FEDERAL RESERVE BULLETIN.

43

Scarcity of labor and materials is a matter of maintain this grain at high levels. A fairly
serious consideration to agricultural imple- good export business prevails.
ment manufacturers; otherwise, a good spring
Wholesale grocers find a ready sale for their
business is anticipated and collections are products with the scarcity of material a factor.
good.
Canners face high prices for sweet corn,
Automobile concerns are seeking to divert tomatoes, beans, and the like. Volume is
their facilities into other channels, such as the about normal and collections very satisfactory.
manufacture of aeroplane engines and bodies,
Hardware concerns report a satisfactory
trucks, and ordnance parts, which will secure volume of business for this time of year. Purfor them Government contracts. Pleasure chase of necessities and Christmas goods form
automobile business will be greatly restricted. the bulk of trade in this line. Conditions are
Collections have tightened somewhat.
normal. Collections are unusually good.
The month of November saw a falling off in
Building is practically at a standstill, due to
the season and to scarcity of materials and the the jewelry business, though the period from
car shortage. Collections are good generally, the first of 1917 showed a fair increase over the
though some complaint is heard with regard corresponding period in 1916. Business continues to decline for the first two weeks of
to country collections.
Coal miners are unable to satisfy demand, December, 1917. A dull holiday season is
the extremely cold weather depreciating the anticipated. Collections are good.
efforts made to fill the already pressing reThe leather industry reports extreme quiet
quirements of manufacturers. Car shortage in civilian business. Government orders are
is also an unfavorable element.
keeping some houses at capacity, while those
Export demand would afford a broad market without Government contracts are slowing
for distillers' products were it not for the diffi- down with little promise for the future. Heavy
culty with shipping restrictions and scarcity of hides for Government work are in strong deocean bottoms. Domestic business is quiet mand. Collections vary from good to exceland no activity is anticipated for the duration lent.
of the war.
The live-stock situation continues to be
It is suggested that hoarding of stock is affected by soft corn. As reported last month,
responsible for some of the advanced prices at this has resulted in an unprecedented demand
which dry goods are being sold. Wholesalers fo;r feeding cattle and banks serving agriculreport a considerable volume of speculative tural communities are experiencing a brisk
buying. A satisfactory volume of retail busi- demand for funds. Receipts of animals at
ness has resulted from the seasonable weather yards are somewhat lighter, the quality apof the past few weeks. Collections are better parently good. It is said that meatless days
are affecting domestic demand, though, of
than normal.
Furniture houses are reasonably well occu- course, foreign demand is very active. One
pied with new business; factories are retaining authority questions the food value of soft corn
most of their employees, though orders are and suggests that this may tend to bring inferior products to market. An agreement
rather light. Collections are good.
Considering the large crops of wheat, corn, recently reached between the Food Adminisand oats, prices have ruled high. Corn of tration and the railroads as to hauling of
good quality brings a high price, though there live stock from prescribed zones will regulate
has naturally been some decline in the lower the volume of receipts. Prices trend downgrade, which was forced to the markets on ward. Collections are good.
account of its poor quality. Speculation is I In the lumber business the car shortage is
blamed for small receipts of oats, though acute, but it will work no particular hardship
transportation deficiency likewise operates to at this time, which is usually slow. Building




44

FEDERAL RESERVE BULLETIN.

operations are practically at a standstill.
Collections are fair.
Mail-order houses report business at about
the same volume as last year.
Piano manufacturers are experiencing the
customary holiday demand with little hope of
filling all orders due to subordination of their
transportation requirements to those of the
Government. Collections are very good, with
a scarcity of skilled labor. There is a disposition to be noncommittal as to prices and
deliveries for 1918.
Shipbuilders are still employed to capacity
and labor is scarce.
The steel industry is working at capacity to
fill war orders. Constructional steel is not in
great demand. Production of pig iron is not
keeping pace with orders and there is some concern among consumers. Lack of transportation is seriously affecting production. I t is
noteworthy that the month of November saw
the smallest decrease in United States steel
unfilled tonnage (8,897,106) since the decrease
began in May, 1907, from the high point
(12,183,083) in April, 1917. I t is believed
that steel buyers have given lip hope of lower
prices or greater ability to fill orders.
Wool purchases are being made for immediate
requirements. Still, prices remain firm, as
imports are curtailed, owing to the unwillingness of the importers to comply with requirements of the Trade Council in securing import
licenses. This will cause encroachment on
present stocks.
Clearings in Chicago for the first 19 days
of December were $1,338,000,000, being
$1,000,000 less than for the corresponding 19
days in December, 1916. Clearings reported
by 23 cities in the district outside of Chicago
amounted to $303,000,000 for the first 15 days
of December, 1917, as compared with
$304,000,000 for the first 15 days of December,
1916. Deposits in the twelve Central Reserve
City member banks in Chicago were
$845,000,000 at the close of business December
19, 1917, and loans were $606,000,000. Deposits show an increase of approximately
$8,000,000 over last month and loans an increase of approximately $12,000,000.




JANUARY 1,1918.

DISTRICT NO. 8—ST. LOUIS.

Business activity in this district has continued unabated during the closing month of the
year. Holiday shopping had a stimulating
effect on retail trade, and department stores
and merchants handling holiday goods report
that a large volume of business was transacted.
Some state that the volume was greater than
that of 1916. This, however, would seem
to mean that, measured in dollars, the volume
was larger, but the number of transactions
was doubtless less than last year. An interesting feature of this year's holiday purchasing
was the fact that the public bought more
useful articles.
Manufacturing industries in this district continue active, Government orders being an important factor. Clothing manufacturers are
working overtime, and manufacturers of shoes
are also busy. Manufacturers of munitions,
machinery, tools, implements, and allied lines,
are working to capacity, and the drug and
chemical lines are also extremely active.
That there is a feeling of confidence in this
district is evidenced by the fact that both
manufacturers and distributors are buying
freely and some new enterprises are being
launched. Business men are becoming reconciled to the taxes and restrictions imposed by
the Government and are settling down in a
grim determination to bring the war to a successful conclusion.
Prices on commodities continue high, but
have not yet reached a point where the demand
is curtailed. The supply to consumers of
certain commodities is being limited to so
much per family within a specified time.
Snowfalls throughout the district during
December furnished the much-needed moisture
for the winter wheat, and this should help it
materially. Government reports issued during
December indicate that approximately 42,170,000 acres in the United States were sown in
winter wheat this fall. The condition of the
winter wheat on December 1 was reported
to be 79.3, as compared with a 10-year average
condition on the same datp of 89.3. I t is forecasted that the present acreage of winter wheat

JANUARY 1,1918.

FEDEEAL EESERVE BULLETIN.

45

will yield 540,000,000 bushels. This is someThere has been a good demand for money,
what below the mark set by the Government, especially in the large centers. This has been
and already steps are being taken to insure a due to the general business activity and also
large increase in the acreage of wheat to be to the fact that the increased cost of materials
planted next spring.
and higher wages require considerably more
The total production of cotton in the States money to conduct business enterprises than
within this district during 1917 was estimated formerly. The bank rate to customers conby the Department of Agriculture on Decem- tinues at from 5J to 6 per cent, with the rate
ber 1 to be 2,247,000 bales, as compared with in the outlying districts somewhat higher.
2,270,948 bales in 1916, and 2,507,723 bales
As a rule, the large city banks have not been
for the last five-year average. In Arkansas in the market for commercial paper. There
and Tennessee the crop this year was con- has been a fair demand, however, from country
siderably less than last year.
banks in certain localities for commercial paper.
The shortage of cars continues to be a The rate has ranged from 5f to 6 per cent, the
serious handicap to business. Largely on this former applying mainly to short maturities
account, in some localities it has been impossi- and the latter to maturities of from four to
ble to get enough coal to meet the demand, six months.
and it has been necessary for some shops in this
On December 3, 1917, the Louisville branch
district to shut down on account of lack of coal. of the Federal Reserve Bank of St. Louis was
During the past month, there has been a opened.
decided decrease in the receipts of all live stock
in the St. Louis market, except horses and DISTRICT NO. 9—MINNEAPOLIS.
mules, which show quite an increase over the
Threats of serious labor troubles in St.
previous month. However, there have been Paul and Minneapolis, growing out of friction
increases over the previous month in the sales between the operating company and streetof live stock, with the exception of hogs, the railway employees, promised during the early
sales of which show a decrease.
part of the month to involve numerous labor
The postal receipts for November in St. unions in a sympathetic strike. The action
Louis, Louisville, Memphis, and Little Rock of the State Public Safety Commission in
all show substantial increases over the corre- Minnesota brought about an adjustment of
the situation, and the danger of serious intersponding month last year.
Reports from the leading cities in this ference with business and industrial activities
district indicate that during the month of was averted.
Labor conditions elsewhere have been satisNovember there has been a decrease in both
the number of building permits issued and the factory, and with all industrial concerns runestimated cost of construction in comparison ning to capacity and large orders ahead, labor
is fully employed at good rates of pay.
with the corresponding month last year.
Banking conditions show little change.
During December the outstanding financial
features in this district have been the with- The demand continues good, with rates very
drawal by the Government of over $60,000,000 firm. Retail trade has been satisfactory, exof the funds on deposit in the banks in this cept that at the larger centers holiday buying
territory, and the second payment on the has not been quite as brisk as a year ago.
Liberty Loan bonds, amounting to approxiA serious situation developed during the
mately $17,000,000. These were effected with month through investigation of agricultural
no disturbance to business, due to the Federal experts, who have been unable to find any
Reserve Bank. Such member banks as found considerable amount of seed corn for next
it necessary rediscounted paper with it.
year's planting. Exceptionally early frosts




46

FEDERAL RESERVE BULLETIN.

prevented the greater part of the corn in the
Ninth Federal Reserve District from maturing,
and most of it was caught in October by severe
freezing weather, followed in November by
warm, foggy days, the combined effect of
which was to produce mold and destroy the
seed value of a large amotfnt of corn that otherwise might have been saved. North Dakota
is practically without seed. I t is estimated
that less than 20 per cent of the corn crop in
Minnesota will germinate, while only about 4
per cent is what would be called good seed
corn in an ordinary year. In view of the
seriousness of the situation, the cooperation of
all the banks in all parts of the district was
invited, and during the month seed-corn warnings were sent out to many thousands of
farmers cautioning them to go over any corn
on hand and immediately select, dry, and test
the seed ears in order to provide their own supplies for spring.
Efforts were also put in motion to ascertain
what amounts of surplus seed individual farmers may have and arrange for its purchase and
shipment to points where there is no seed to
be had. I t is very possible that even with the
most active cooperation of banks, business
men, and farmers that it will be impossible to
secure and distribute enough seed to prevent
a sharp reduction in the corn acreage planted
in 1918. Attention is also being given to the
seed problem as it affects small grains and to
the conditions in parts of North Dakota and
Montana, where because of the crop failure this
year farmers are very short of feed and forage.,
As a consequence of the feed situation a considerable amount of stock has been shipped
out of both North Dakota and Montana, including many breeding animals that farmers
have not found it possible to carry over the
winter.
DISTRICT NO. 10—KANSAS CITY.

Agriculture.—The wheat movement in November was less than one-half as large as a
year ago and less than one-third that of two
years ago. Under the supervision of the food
administration, mills have been able to operate




JANUARY 1,1918.

at practically full capacity for the first time
in some months, with an increased output of
5 per cent over the same month a year ago
and some wheat accumulation in the smaller
mills. Millers are complying with the regulations of the authorities in the finest spirit
of cooperation, but are finding it difficult to
set flour prices within the rules, as a slight
fluctuation in wheat receipts produces fluctuation in cost. The steady decrease in stocks
of wheat and corn in the elevators during the
past months has been checked, wheat stocks
increasing 62 per cent during the month and
corn supplies doubling those of October.
The car shortage slightly affected the corn
movement for November, which was, however,
about normal, while an urgent demand kept
the prices higher than ever before. With hay
selling at more than double the price a year
ago, there was a larger movement on the local
market than for any previous month this year.
The hay crop of Nebraska is now estimated
at about 28 per cent less than last year.
Owing to a continued general drought and a
shortage of labor, Kansas farmers failed to
reach the wheat acreage goal of 10 millions
set by the national food administration. The
total wheat acreage of that State is nine and a
half millions, or 1 per cent less than for iast
year. The general condition of winter wheat
in Kansas is 70 per cent, in Oklahoma 51 per
cent, and in Nebraska about 80 per cent. A
strenuous effort has been started in Nebraska
to secure a large acreage of spring wheat to
offset the winter shortage.
The value of Colorado crops for this year is
said to be a half greater than for any other
previous year, and the cultivated acreage about
15 per cent greater. The bean crop in that
State has been greatly increased till it will
be nearly a sixth of that for the entire countrylast year. Notwithstanding some damage by
frost, the potato crop of that State shows a
third increase over 1916.
Live stock.—The demand for hogs has been
strong, with prices maintaining a high level,
prices declining during early December from
the former high figure. Those offered have

JANUARY 1,1918.

FEDERAL BESEBVE BULLETIN.

been of the highest grade marketed this season,
averaging 18 per cent heavier than for last year.
Receipts for November declined 40 per cent
from a year ago, owing to the shortage of last
year's corn crop and the lack of late summer
feed.
The prices for cattle broke from $1 to $3, but
rallied 50 cents by the end of November. The
big range movement of cattle is almost over
for the year. It continued this season logger
than usual because of the drought conditions
in the Southwest, causing a scarcity of pasturage in the wheat fields and in the grass regions
of southwest Texas. The large war contracts
for meat resulted in a demand for the common
class of cattle, but the demand for higher grades
used in local trade was light.
An increase in sheep receipts was registered,
due to the late movement of feeding lambs
through the market. Prices were much higher.
The movement of both cattle and hogs from
the markets for feeding on the farms has been
strong all year. The soft condition of the corn
became apparent in October. This greatly
stimulated winter feeding, so that during November shipments to the farms increased over
November last year nearly a half for cattle and
six times for hogs. For the first 11 months of
the year compared with the same period a year
ago the stocker movement increased a fifth for
cattle and one and one-half times for hogs.
The former prediction of a more plentiful meat
supply for next year seems now to be even
more justified than when it was made.
Mining.—The Missouri - Kansas - Oklahoma
lead and zinc district this year produced nearly
a third more zinc and a fourth more lead than
last year. The zinc market has been unsettled
for some time, averaging far below the figures
for a year ago. During the one month of November there was a decline of 11 per cent.
Smelters have been advancing money on shipments and storing the ore, but are no longer
able to do so. This condition, coupled with
the falling market, has resulted in the closing
of many mines in Kansas and Oklahoma. The
prices for lead have averaged a fourth more




47

than last year and were increasing at the beginning of December.
Colorado has this year increased her coal
output a fourth and reports that their difficulty is not lack of fuel but lack of cars to
move it. The possibility that alien enemies
may be excluded from the vicinity of the
mines caused some apprehension in the mining districts, where most of the workers are
Austrians who have not yet become fully naturalized and are unable to secure final naturalization papers on account of the condition of
war.
According to the reported statement of a
scientist in a Kansas State institution, there
is enough sulphur now going to waste at the
zinc smelters of this district to supply all the
needs of the country for sulphur and sulphuric
acid and in form to be obtained at a profit by
commonly used methods.
Oil.—The most important feature of the oil
situation in this district has been the gradual
decline of stocks and a lessened development in
the Mid-Continent field for November. As
there has been less difficulty in getting supplies
and labor than formerly and the weather averaged no dryer, the only reason that has been
given for the checking is a psychological one.
The total number of wells brought in in the
United States for November fell off a seventh
and production from them was more than a
third less than for October. The same proportions hold for the Mid-Continent field, although
Kansas doubled her production of a year
ago.
Operations continue active in Wyoming and
Colorado. In the first-mentioned State 30
wells were completed in November. The production of these new wells would equal nearly
half the entire production of the State last year.
Operators are expecting to continue the work
of drilling through the winter.
In Colorado a survey of the shale-oil resources has been arranged for under State supervision. A Government official has been
quoted as estimating the total possibilities at
20,000,000,000 barrels, from which 2,000,000

48

FEDERAL BESEBVE BULLETIN.

barrels of gasoline could be obtained, together
with vast quantities of ammonium sulphate for
fertilizer. A new and shorter process has been
patented for extracting the oil from shale, and
pioneer development along this line is now
going on.
Casinghead, a gas that escapes from the
mouths of oil wells, is now being utilized in
making gasoline in Oklahoma, and its value is
proving greater even than was first estimated
when its conservation was first undertaken by
the State.
Lumber and construction.—The lumber trade
is beginning to recover from the depression of
the past few months. Building in the cities
shows an increase over a year ago, but is confined to the construction that must be done for
business purposes.
Mill stocks are badly broken on account of
supplying unusual Government needs, and
shipments are made with increasing difficulty
in securing cars. Many country dealers allowed their stocks to become low during the
fall when demand was so light. They are now
ordering to supply the building that farmers
are doing and are finding it difficult to get
their orders filled and shipped. Local dealers
are optimistic notwithstanding the fact that
they expect the transportation troubles to become more acute and not to be relieved till
next spring or summer.
Labor.—The demand for laborers of all
classes continues strong. The condition of
soft corn has checked the demand on the farms
and the increased use of gasoline for power
purposes has assisted, but the great demand
caused by the withdrawal of young men for
the Army has not been entirely satisfied. Nebraska reports indicate that the State council
of defense, acting with national authorities,
handled the farm labor problem in a most satisfactory manner.
While the economic questions that have
brought about strikes have not, of course, been
disposed of, for the time being, the strike situation is very satisfactory. No disturbance of
any importance has occurred since the settle-




JANUARY 1,1918.

ment of the coal mine troubles, and so far as
reported none are contemplated.
Mercantile.—Trade continues very active in
nearly every line and collections are good.
The cold weather has stimulated heavy buying
in winter clothing of all kinds, and the holiday
trade has been very heavy. In this connection there has been especial development in
the sales of all forms of goods and articles for
personal use in the Army.
Sugar is scarce. Lumber sales are increasing. Hats, shoes, clothing, groceries, and^ provisions are moving rapidly, and in many cases
the difficulty is not in selling but is in getting
the goods. Distributing houses find it difficult to keep up with the demand of the country
dealers, in all forms of farm machinery and
gasoline-power machines. The slowing up of
sales of pleasure automobiles continues, as
does the increased sales of trucks, tractors,
tires, and accessories.
Failures have been few and confined to businesses whose capital was too small to properly
handle purchases and credits at the present
high prices. They are nearly a half less than
for a year ago, as compared with a reduction of
a tenth for the entire country. The liabilities
of those concerns failing averages about $6,000.
Financial.—The continued business activity
is shown in bank clearings during November,
two-thirds greater than for the month last year
and more than twice as great as two years ago.
Money rates have not changed and the demand
remains about the same, being perhaps slightly
less than for the previous month.
DISTRICT NO. 11—DALLAS.

Extremely cold weather has prevailed during
December, and has been especially beneficial to
wholesale and retail trade. Dealers in the
larger cities who handle such lines report that
they have enjoyed a good volume of business
during the month, and sales are ahead of last
year. Manufacturers are active, with collections good. Mail-order houses are enjoying a
large business. Manufacturers of saddles and
harness are exceptionally active, and dealers in

JANUABY 1,

1918.

FEDERAL RESERVE BULLETIN.

hardware, paints, and similar lines report increased sales.
As the crops of the past season have all been
marketed, there is little of interest to report of
agricultural conditions. The heavy freeze the
early part of the month killed insects, and the
scattered rains have put the ground in generally good condition for preparations for next
year's crops. Reports indicate that farmers
are preparing their land for 1918, and the acreage will be materially increased. More rain is
badly needed in some sections before the ground
can be sufficiently worked.
While there will probably be a curtailment in
the purchase of luxuries and nonessential articles, which is a condition quite desirable, reports indicate that the volume of holiday trade
will be heavy, and probably equal that of 1916,
when merchants in the larger cities of this district had an unprecedented business.
While building operations continue dull, and
reports from the larger cities state that the
number and value of permits issued during
November were small, manufacturers of brick
and other building materials report that the car
situation has improved, and their November
business was better than in recent months, with
collections good. Demand for lumber from the
interior trade is more than sufficient to employ
whatever cars are available, and while the volume of shipments is not up to normal, prices are
satisfactory, and collections in the trade are
good. The production is probably not more
than 85 per cent of normal, due to various conditions and a shortage of labor. All of the
mills in the "long leaf'7 territory are busily engaged in the production of lumber for shipbuilding from such portion of their timber as is
adapted to this purpose. At Orange, Tex.,
which is in the center of the lumber region of
southeast Texas, some 40 Government vessels
are now under^construction, furnishing employment for 4,000 men, with a weekly pay roll of
$50,000. This activity has made business good
in all lines.
The concentration of shipping at the North
Atlantic ports has reduced water transporta-




49

tion via the southern Gulf ports to a marked
extent, and exports from Galveston consequently showja decrease. Texas City, also one
of the largest ports in the district, has suffered
greatly. Reports received indicate that on account of the congestion at the northern ports
there will be a diversion of shipments to the
South at an early date, when it is expected
exports from Galveston, Texas City, and
other ports in the' district will materially
increase.
The banking situation is satisfactory. An
analysis of the reports received from member
banks, on the Comptroller's call of November
20, discloses heavy deposits, especially in more
favored agricultural sections, and a generally
sound condition. Banks in the sections mentioned are carrying heavier deposits than at the
same period of 1916, when all previous records
were broken. The demand for money continues good. Some banks are purchasing
prime commercial paper as an employment of
their surplus funds. There has been no noticeable increase in interest rates, and they remain
easy. The campaign for the purchase of WarSavings Certificates is now on, and is meeting
with good results.
Clearings at the larger cities during November, reflecting the heavy fall and winter business, were $351,898,194, an increase of 36 per
cent over November, 1916.
Post office receipts at the principal cities for
November show an increase of 51 per cent.
The increased postage rate, of course, accounts
for a substantial portion of the increase, as well
as the seasonal business in parcel-post shipments.
There has been little change in the cattle industry. There were few losses from the extremely cold weather of the month, but range
conditions have not improved. Ranchmen are
burning cactus in some sections to keep their
herds alive. The outlook is not good.
Labor conditions have not changed within
the month. There is a general shortage of
men, and notwithstanding attractive wages
the situation shows no improvement.

50

FEDERAL RESERVE BULLETIN'.

DISTRICT NO. 12—SAN FRANCISCO.

Lack of precipitation has been an unfavorable agricultural factor throughout this district during the fall. In Washington fall
plowing was restricted by dry weather, and
wheat, which was planted in the dust, did not
germinate effectively. Rains in the first part
of December in the Walla Walla (Wash.) district and snow in the region of Spokane
(Wash.) have tardily bettered the prospects
for winter wheat. In California the precipitation for the season beginning October 1 has not
been 10 per cent of normal. It is, of course,
not a definite indication that there will not be
abundant moisture later, so as to assure the
crops for 1918, but the continued dry weather
occasions concern.
The Pacific Coast potato crop is reported as
48,105,000 bushels, an increase over last year
of 3,105,000 bushels, an increase of 7 per cent
The acreage however increased from 216,000 to
328, 000 or 52 per cent. The barley crop in
California aggregated 40,000,000 bushels, which
was an increase of 17,000,000 bushels over 1916.
There has been a general effort to increase
acreage and this has been the cause of an
increase in some products. The season, however, which has just closed has not been generally favorable for agricultural products in
this district. It is in spite of this that the
summary of totals shows that the aggregate
tonnage was exceptional.
The supply of farm laborers, which has been
inadequate during the past year, and which
has been diminished by the draft, promises to
be materially short of the needs during the
coming year. The suggestion is being made
with increasing frequency that a large number,
perhaps 200,000, of Chinese farmers be brought
to this country, under bond for their return, to
raise crops during the war. Cuba has pursued this course to secure labor for handling the
crop of sugar cane. Apparently no objection
is made to the proposal except by labor unions.
Curtailment of available range for feeding,
the high price of feed, and inability to secure
labor have resulted in the marketing of much




JANUARY 1,1918.

live stock in the Northwest. In Oregon, Washington, and Idaho the holdings of hogs are at
present 2,550,000 plead, compared with
3,920,000 head at the same time a year ago; of
cattle 915,000 head, compared with 1,790,000
head a year ago; and 380,000 dairy cows,
compared with 510,000 in 1916. Holdings of
sheep and lambs alone show an increase, being
4,340,000 head compared with 4,260,000 head
a year ago. The campaign for more sheep
and more wool has been influential for an increase, but extraordinary prices have likewise
been a potent influence.
Labor conditions, which have been very unsettled during the year, appear to have reached
a state of greater stability. There have been
strikes in copper mines of Arizona, in lumber
mills of the Northwest, in shipyards and
allied metal trades, not only in San Francisco,
but also in Portland and Seattle. There has
been a telephone strike at Seattle and a bitter
and violent street car strike in San Francisco.
The intervention of the Federal Wage Adjustment Board, Secretary of Labor Wilson coming
himself to the Pacific Coast, was effective in
reaching settlements in several cases. The
intervention ordinarily resulted in prevailing
upon employers to concede the demands, in
large part, of the striking workmen, but at all
events a basis was usually reached under
which the processes of production were resumed.
In southern California canning tuna fish has
become an important industry, large contracts
having been made with the Government for
Army needs. The salmon pack of the Northwest, however, is the great fish industry. The
value of the 1917 salmon pack in Alaska alone
is placed at $30,000,000, comparing with
$21,000,000 in 1916.
Shipbuilding has advanced with huge strides.
Both steel and wooden ships are under construction in large numbers at Seattle and
Portland, while San Francisco is doubling and
quadrupling her facilities for building chiefly
steel ships, and Los Angeles is also engaged in
important construction.

JANUARY 1,1918.

FEDERAL RESERVE BULLETIN.

The construction of buildings is decreasing,
reports from the principal cities of this district
showing a decrease of 17 per cent during the
past five months.
Imports and exports, measured in dollars,
are at record figures in spite of deficient tonnage. Seattle leads San Francisco in foreign
trade, the estimated figures for 1917 being,
respectively, $410,000,000 and $320,000,000.
Petroleum production in California during
November was 8,112,170 barrels, while shipments were 9,303,660 barrels. This excess of
consumption reduced stored stocks by 1,191,490 barrels to 32,603,625. On December 31,
1915, stored stocks were 57,147,051 barrels.
Bank deposits and bank clearings continue
to expand. Lending rates of member banks
have tended to greater firmness and there has
been considerable rediscounting with Federal
Reserve Bank, but all legitimate requirements
of borrowers are being readily met. The influence of Federal Reserve Bank in imparting
financial stability and confidence is very
marked. This influence is being steadily enhanced as the exchange is made of Federal
Reserve notes for gold, the banks' reserve
thereby being continually expanded. The
issue of Federal Reserve notes is frequently
referred to as being an addition to the money
in circulation and evidencing a corresponding
inflation. The fact, however, is that for the
most part gold has been drawn into the reserve
of the Federal Reserve Bank pari passu with
the issue of Federal Reserve notes. Everyone
who uses a Federal Reserve note instead of
gold really places the gold in the reserve of the
Federal Reserve Bank and thereby performs
a patriotic service in adding to the financial
fortification of the country. A study of the
weekly published statement of Federal Reserve
Bank will show not only the large issue of
Federal Reserve notes, but also the great
increase thereby in the gold reserve.




51

After setting apart the gold and gold certificates legally required as vault reserves, California State banks and trust companies have
now such vault cash that they could exchange
approximately $20,000,000 gold and gold certificates for Federal Reserve notes. As the
Federal Reserve Bank would pay transportation charges both ways, this could be done not
only without expense to them but also without
impairing their reserve position. Such an addition of $20,000,000 gold to the reserves of
theFederalReserveBankwouldadd$30,000,000
to its lending power if proceeds were paid in
Federal Reserve notes. The opportunity for
patriotic service in thus strengthening the
Federal Reserve system to meet the Nation's
financial strain is open to every California State
bank whether small or large and whether
member or nonmember.
At the end of the year 1917, Federal Reserve
Bank of San Francisco paid a semiannual
dividend amounting to approximately $298,000,
covering accrued dividends upon its outstanding stock at the rate of 6 per cent per annum
from October 1, 1915, to December 31, 1916.
The semiannual dividend paid June 30, 1917,
amounted to approximately $108,000, making
a total paid during the year of approximately
$406,000. The dividend requirements at 6
per cent per annum are about $240,000 per
annum.
It would be of great value to any member
or nonmember bank, whether small or large,
if, as a means of gaining information concerning the methods of the Federal Reserve Bank,
it would arrange to have a skilled employee of
the grade of assistant cashier or chief clerk
enter for a few months the employ of the Federal Reserve Bank. Positions are available
for a few such men either immediately or after
a little notice. A bank having on its staff
one who had had such experience could not
fail to derive important benefit through the
knowledge gained of how best to avail of the
advantages of the Federal Reserve System.

52

FEDERAL BESEBVE BULLETIN,

JANUABY 1,1918.

DISCOUNT OPERATIONS OF THE FEDERAL RESERVE BANKS.
On the last Friday in November the Federal
During the month of November discount
operations of the Federal Reserve Banks Reserve Banks held a total of $756,398,000 of
totaled $3,206,486,771, or nearly 20 per cent discounted bills, as against $397,094,000 at the
in excess of the previous record total for end of October. Paper directly traceable to
October of the current year. Over 80 per war loan financing, i. e., member banks' colcent of the paper offered for rediscount was lateral notes and customers' paper secured by
in the shape of member banks' collateral notes Liberty bonds and certificates, aggregated
secured by Liberty bonds and certificates of nearly 500 millions and constituted about twoindebtedness, the New York bank alone re- thirds of the total discounts held by the banks
porting $2,398,184,883 of this class of paper for about the close of the month, the remainder
the month. Collateral notes, otherwise se- comprising $120,813,000 of member banks colcured, constituted about 13 per cent of the lateral notes, secured by commercial paper,
total discounts for the month, while over 6 per $121,678,000 of customers' (secured and unse-,
cent is represented by customers' paper, in- cured) paper, $8,731,000 of agricultural, and
cluding paper secured by Government bonds $6,261,000 of live stock paper. About 72 per
cent of the agricultural paper was held by the
and certificates.
Total discounts for the month include in Chicago and Minneapolis banks, while an equal
addition $6,959,770 of trade acceptances both percentage of the live stock paper is credited to
in the foreign and domestic trades, compared the Kansas City and Dallas banks.
with $4,442,261 for October, and an average
During the month the number of member
of about $1,516,850 for the first ten months of banks increased from 7,783 to 7,846, largely as
the present year; also $2,577,256 of commodity the result of admission to membership of State
paper, compared with $1,659,491 for October banks and trust companies. The number of
and an average of $867,927 for the ten months members accommodated during the month
ending October of the present year.
through the discount of paper is given as
Discounts for the 11 months of the present 2,102, or nearly double the number shown for
year aggregated $8,076,570,193, of which October. The total number of member
$7,356,434,988, or over 90 per cent were collat- banks in each Federal Reserve district on
eral notes, $22,128,269 trade acceptances, November 30, and the number of members
$11,256,523 commodity paper, and $686,- discounting during the month of November,
750,413 customers' notes, including bills were as follows:
secured by Government bonds and certificates.
As compared with corresponding 1916 figures,j
Number Number
of banks
of
Federal Reserve district.
discounts of trade acceptances with the Reserve •
member accommodated.
banks.
banks increased nearly five-fold, while discounts of commodity paper declined about 30 Boston
229
401
New York
659
175
per cent.
Philadelphia
634
116
762
102
Owing to the large preponderance of collat- Cleveland
Richmond . .
.
529
102
133
eral notes, about 94 per cent of the total dis- Atlanta
388
Chicago
1,082
843
476
78
counts of the month is reported as 15-day St. Louis
779
108
960
paper (i. e., maturing within 15 days from date Kansas City ..
115
633
Dallas
61
of discount with the Federal Reserve Bank), San Francisco
40
543
this proportion being as high as 99 per cent in
2,102
Total
7,846
the case of the New York bank.




53

FEDERAL RESERVE BULLETIN.

JANUARY 1 , 1 9 1 8 .

Bills discounted during the month of November, 1917 and 1916, and the 11 months ending November, 1917 and 1916,
distributed by classes.
I Member banks' collateral notes, i
Secured by
Liberty bonds
or U. S. certificates of
indebtedness.

Federal Reserve Bank.

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

Otherwise
secured.

$15,535,000
213,905,000
7,755,505
14,362,000
35,195,902
12,298,500
45,798,250
10.9-48,000
2)098,215
40,273,404
5,281,281
9,004,800

S436,894
1,102,357
100,139
819,959
544,291
1,350,141
12,788
651,754
35,679
378,141
37,528
1,490,099

2,585,651,730
412,455,857
5,587,895
7,356,434,988
9,075,047

6,959,770
853,300
22,128,269
4.109,300

$4,916,958
2,398,184,883
9,209,425
13,074,250
15,280,366

,

5,289,550
78,537,698
12,971,600
12,630,000
23,113,500
5,384,000
7,059,500

November, 1917
November, 1916
January-November, 1917.
January-November, 1916.

Trade
acceptances.

Commodity
paper.

All other,
discounts.

Total.

23,921
568,509

839,648,948
50,475,052
14,384,533
19,195,135
5,124,606
2,756,926
38,550,614
7,431,652
4,089,909
6,234,004
2,108,966
8,841,813

§60,537,800
2,663,667,292
31,478,602
£47,582,704
i 56,279,290
£23,049,369
162,899,350
32,313,695
18,879,203
69,999,049
12,835,696
26,964,721

2,577,256
1,047,000
11,256,523
15,996,500

198,842,158
10,415,905
686,750,413
114,973,653

3,206,486,771
£17,904,100
8,076,570,193
144,154,500

S29,000
131,360
134,125
1,354,252
310,689
25,400

Amounts of discounted paper, including member banks' collateral notes, held by each Federal Reserve Bank on the last Friday
in November, 1917, distributed by classes.
[In thousands of dollars; i. e., 000 omitted.]
Commercial and indus-1 Member banks' coltrial paper.
|
lateral notes.
Agricultural
paper.

Banks.

by!!
Live-stock Secured
Liberty
.Liberty ;
paper.

Secured by
Liberty
Liberty

^ s ' c c ? * I Otherwise !
tificates of
indebtedness.

*°f*<*

! tificates of
j indebtedi ness.

Otherwise
secured.

All other
discounts.

Total.

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

36
84
33
544
400
5,025
97
1,263
484
296
483

Total
Per cent

8,731
1.2




•i

28
1
217
157
115
797
2,939
1,544
463

31,408
34,467
12,219
7,650
1,544
10

5,275
172
169
219
175 i

10,013 !
20,887 i
3,463 i
4,586 |
4 770 I
4,860 I
33,92-i
9,010
3,852
3,900
1,811
9,519

i
!
i
!
!

2,
345,
2
2,
24,
4,
2, 515
5, 758 j
1 550 |
724 !

4,475
51,407
3,577
7,052
5,593
5,768
18,716
3,670
518
13,823
1,078
5,136
120,813 I
16.0

1,033 |
"7." 786"
1,820
178
172

100 i
11,083
1.5

48,072
453,662
24,003
32,612
16,735
14,351
88,029
17,838
9,114
27,103
6,279
18,600
756,398
100.0

54

FEDERAL RESERVE BULLETIN.

JANUARY 1,1918.

Acceptances bought in open market and held by Federal Reserve Banks as per schedules on file with the Federal Reserve Board,
or as reported by the Federal Reserve Banks on dates specified, distributed by classes of accepting institutions.
Bankers' acceptances.
Trade acDate.

Feb. 22..
Apr. 5 . . .
May 3 . . ,
June 7...
July3...
Aug. 2...
Sept. 6..
Oct. 4...
Nov. 1...
Dec. 6...

1916.

1917.




Nonmember State
banks.

893,000
3,653,000
5,038,000
5) 242,000
4,342,000
5,350,000
6,087,000
9,000,000
8,477,000
12,311,000

$7,820,000
8,189,000
4,516,000
5,267,000
5,407,000
6,305,000
4,898,000
4,331,000
5,172,000

,$10,000
10,000
10,000

15,494,000
15,681,000
17,182,000
1 21,000,000
!: 24,875,000
24,680,000
32,989,000
. 39,695,000
. .
! 41,413,000
37,798,000
1 37,770,000
| 47,748,000
j
!
'
;
1
!
|
1
!
!
j
1
1

1915.

Jan. 3
Feb. 7
Mar. 6
Apr. 3
Mayl
June 5.
July 3 .
Aug. 7.
Sept. 4
Oct. 2
Nov. 6
Dec. 4
Jan. 1
Feb. 5
Mar. 5
Apr. 2
May 7
June 4
July 14-16
July 31
Aug. 31
Sept. 29
Oct. 31
Nov. 30

Nonmember
trust
companies.

Member
banks.

i
!

66,803,000
50,361,000
53,288,000
43,979,000
49,192,000
69,262,000
108,597,000
112,433,000
94,597,000
131,997,000
150,301,000
171,723,000

Foreign
bank
branches
and agen-

Private
banks.

!

Total.

bought in
open
market.

Total acceptances.

20,000
20,000
132,000
253,000
275,000

.§110,000
110,000
192,000
161,000
352,000
472,000
343,000
204,000
396,000

§93,000
11,593,000
13,347,000
9,960,000
9,770,000
11,129,000
12,884,000
14,373,000
13,265,000
18,154,000

7,160,000
7,876,000
8,670,000
13,573,000
15,400,000
17,029,000
18,921,000
19,060,000
20,356,000
21,782,000
29,474,000
33,232,000

362,000
336,000
408,000
473,000
585,000
644,000
471,000
738,000
726,000
712,000
1,014,000
1,630,000

822,000
1,456,000
1,781,000
3,262,000
3,430,000
7,007,000
11,830,000
13,940,000
12,491,000
9,944,000
12,147,000
16,069,000

23,838,000
25,349,000
28,041,000
38,308,000
44,290,000
49,360,000
64,211,000
73,433,000
74,986,000
70,236,000
80,405,000
98,679,000

8489,000
462,000
722,000
1,477,000
2,208,000
3,422,000
4,225,000
3,673,000
2,306,000
2,378,000
4,487,000

23,838,000
25,838,000
28,503,000
39,030,000
45,767,000
51,568,000
67,633,000
77,658,000
78,659,000
72,542,000
82,783,0o0
103,166,000

34,625,000
23,511,000
32,518,000
20,328,000
19,650,000
27,611,000
30,390,000
43,107,000
33,273,000
14,987,000
3,147,000
5.338,000

1,502,000
972,000
1,090,000
689,000
236,000
584,000
3,333,000
2,564,000
2,312,000
2,193,000
1,307,000
753,000

18,224,000
13,775,000
20,581,000
16,830,000
19,177,000
21,077,000
38,082,000
20,782,000
18,086,000
21,708,000
21,083,000
18,201,000

121,154,000
88,759,000
107,837,000
82,026,000
88,349,000
118,773,000
184,785,000
179,973,000
149,637,000
173,171,000
177,991,000
199,178,000

4,585,000
4,041,000
2,535,000
1,144,000
1,679,000
3,022,000
4,660,000
4,242,000
4,952,000
6,942,000
6,224,000
6,275,000

125,739,000
92,800,000
110,366,000
83,170,000
90,028, GOO
121,795,000
189,445,000
184,215,000
154,589,000
180,113,000
184,216,000
205,453,000

$140,000
354,000
200,000
94,000
239,000
3,805,000
1,087,000
1,369,000
2,286,000
2,153,000
3,163,000

$93,000
11,593,000
13,347,000
9,960,000
9,770,000
11,129,000
12,884,000
14,373,000
13,265,000
18,154,000

55

FEDERAL BESEBVE BULLETIN.

JANUARY 1,1918.

Amounts of bills discounted and acceptances and warrants bought by each Federal Reserve Bank during November, 1917,
distributed by maturities.
15-day maturities.
Banks.

Acceptances.

Discounts.
Boston
New York

814,243,721
2,623,764,467
17,462,072
28,180,622
50,924,399
18,868,473

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

127,880,288
25,530,285
14,904,674
63,996,325
10,981,317
18,261,156

3,014,997,799

Total.

Percent

30-day maturities.
"~
" |
I
Total.
Discounts.!

Warrants.

490 !

!

611, 575 !
397, 439 ;
582, —
557,
,
1,509,
,
,
302,
195,

$14,369,211

i 2,624,376,042
17,859,511
28,763,003
!
51,481,399
I
20,377,648
! 127,880,288
25,530,285 I
15,207,176 I
64,191,547 :i
10,981,317
19,318,497 ;

502 j
222 !

1,057,341
5,338,125 !

$9,918,861
1,245,417
708,987
5,174,169 !
663,990 !
1,328,520 i
5,105,413
1| 423', 566 j
520,369a !!;
Mn
™
960,006
387,235 '
2,073,355 !

Warrants.
8727,951
3,787,828
2,666,308
3,764,148
3,108,928
1,088,826

Total.
$10,646,812
5,033.245
3}375! 295
8,938,317
3,772,918
2,417,346
5,105,413
2,588,605
3,540,190
1,800,294
3,295,435
6,744,088

1,165,039 I.
3,019,821 .
840,288 !.
2,908,200 !.
4,670,733 j .

j 3,020,335,924 i 29,509,888 ! 27,748,070
88.9 !

57,257,958

•|

60-day maturities.

90-day maturities.

Banks.
Discounts. Acceptances. Warrants.
Boston
New York
Philadelphia.
Cleveland
Richmond...
Atlanta
Chicago
St. Louis
Minneapolis
.Minneapolis*
Kansas City
Dallas
San Francisco

S3,604,
16,355,
7 458
9,619,
3,640,
821,

$4,086,615
6,708,561
1,575,537
6,346,481
1,526,664
1,886,530
14,101,738
3,090,450
1,683,851
A, UOO, QUA
! 1,7G9,514
I
790,518
i 3,803,274

Total

Total.

57,690,735 832,169,170
23,064,430 31,948,847
9,067,163 11,731,106
15,965,543
7,857,827
5,167,277
3,163,887
2,710,593
951,589
12,267,641
14,101,738
2,239,404
5,591,505
5,106,085
1,213,629
4,440,841
2,071,544
6,586,897
383,571
2,655,771
12,946,323

§33,500

2,550

"2*561"

3,422,
2,671,
5,796,
9,143,

47,369,733

65,033,347

36,050

112,439,130
3.3

Per cent
Over 90-day maturities.
Banks.

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




WarDiscounts. Accept-1
arices. j rants.
§119,433 $194,015';
900 113,051
23,605 137,488 !
350 90,146
14,257 11,000 $120,534
3,544,270 62,849 i
29,990 238,333 i
556,680
•
! 1,201^ 660
j
I 293,055
:
I 171,165
!

Discounts. Acceptances. Warrants.
$7,184,
40,640,
8,844,
8,894,
3,069,
1,215,
983,
3,873,
3,332,
1,312,
5,364,
7,540,

839,353,942
72,589,452
20,575,808
16,752,424
6,233,139
2,174,181
13,250,906
6,112,814
4,546,271
3,383^974
5,748,005
10,196,391

108,653,986 1 92,255,832
!

200,917,307
5.9
Per cent.

Total.
Total.

Discounts.

Acceptances.

Warrants.

Total.

$60,537,800 $11,836,348
$72,374,148
2,663,667,292 61,395,877 I
2,725,063,169
31,478,602 19,479,626 §33,500 i 50,991,728
47,582,704 j 22,997,676
70,580,380
"" '""
90,496
56,279,290 i 10,465,939
I 66,745,229
23,049,369 ' 4,645,617 I 130,573 ! 27,825,559
145,791
""
i 163,945,464
3,607,119
, ,
! 162', 899; 350 1,046,114 ,
' 40,091,532
! ne
268,323
° ooo . 32,313,695
7,777,837 !
! 28,991,536
! 556,680 i 18,879,203 10,077,199 ';
' 75,018,316
j 1,201,660 : 69,999,049
5,019,267 !
i 26,904,709
: 293,055 ! 12,835,696 14,069,013 i
j 49,376,464
i 171,165 ; 26', 964^721 22,411,743 ••

DisAccept-I Warcounts, ances. I rants. Total.

3313,448

!
!

113,951
161,093

OJL,

1UJ,

\)\J*

XV,

'I I W ,

\}£J\J

I 5,955,385 846,882 ! 120,534 ! 6,922,781 3,206,486,771 191,222,256
!

Total,

164,0733,397,873,100

!

100.0

97.7 !
61.7
67.4
84.3
82.8
99.4
80.6
65.2
93.3
47.7

I
i
!
i
i
i
I
i
I

54.6 :
94.4

16.4
2.3
38.2
32.6
15.7
16.7
19.4 i
34.8 !
6.7 !
52.3
45.4

100.0
0.1
.5

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

56

FEDERAL RESERVE BULLETIN.

Maturities of discounts, acceptances, and municipal

JANUARY 1,

1918.

warrants held by each Federal Reserve Bank on Friday, Nov. SO, 19.17,

[In thousands of dollars; i. e., 000 omitted.]
1 to 15 days.
Banks.

16 to 30 days.

Bills dis- Acceptances Municipal
bought.
warrants.
counted.

Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis...
Minneapolis
Kansas City..
Dp Has

San Francisco
Total
Percent

5,289
406,683
9,449
17,075
10,106
10,691
33,246
10,688
4,660
20,875
3,658
10,460

6,252
3,141
5,089
7,370
2,895
1,026
1.056
1,472
2,138
1, 722
2,013
4,192

542,880

38,366

505
3
9

517

Bills dis- Acceptances Municipal
warrants.
bought.
counted.

Total.
11,541
410,329
14,538
24,448
13,001
11,726
34,302
12,160
6,798
22,597
5,671
14,652

7,727
6,434
523
2,964
1,574
1,099
26,554
2,390
1,495
1,138
938
2,156

6,401
3,139
5,768
5.902
4,011
1,617
800
2,067
1,725
866
2,695
2,347

581,763
60.4

54,992

37,338

31 to 60 days.
Banks.

5,444
11,473
3,705
5,802
2,503
1,696
15,133
3,362
1,414
2,863
812
4,327 |

5,514
20,612
9,330
12,605
4,592
1,322
3,321
2,744
3,617
1,414
8.388
8,425

Total.
Per cent

58,534

81.884

44
7
3
25
46
125

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

Percent




Bills dis- Acceptances Municipal
counted. bought.
warrants.

Total.

!
2
15
45
3, 755
47
641
1,033
511
199
6,248

i
i20

320

2
15
165
3, 755
47
641
1,033
511
199
6.368
0.6

2

i3

15

92,345
9.6

Bills dis- Acceptances Municipal
bought.
warrants.
counted.

Total.
10,958
32,085
13,079
18,414
7,095
3,021
18,454
6,106
5,056
4,277
9,246
12,752

29,612
29.072
10,326
6,769
2,537
820
9,341
1,351
904
1,194
360
1,458

4,871
29,298
3,355
1,537
1,842
924
907
1,977
107
7
1,580
1,461

140,543
14.6

93,744

47,866

Bills dis- Aceptances Municipal
counted. bought.
warrants.
48,072
453,662
24,003
32,612
16,735
14,351
88.029
17,838
9.114
27,103
6,279
18,600

23,038
56,190
23,542
27,414
13,340
4,889
6,084
8,260
7,587
4,009
14,676
16,425

756,398

205,454

Total.
34,483
58,881
13,681
8,306
4,379
1,885
10,248
3,328
1,011
1,201
1.940
2,919

sii
141

652

142,262
14.8

Percentages.

Total.

Over 90 days.

Banks.

14,128
9,573
6,291
8,868
5,585
2,729
27,354
4,457
3,220
2,004
3,633
4,503

61 to 90 days.

Bills dis- Acceptances Municipal
warrants.
bought.
counted.

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

Total.

Total.

1,016
44
12
i
286 i
I
25
!
46
•

1,429

Bills Accept- Municipal
disances
war- Total.
counted bought. rants.

71.110
510,868
47.589
60. 038
30,075
19.526
94,113
2'6.098
16.726
31,112
21.001
35,025

67.6
88.8
50.4
54.3
55.6
73.5
93.5
68.4
54.5
87.1
29.9
53.1

32.4
11.0
49.5
45.7
44.4
25.0
6.5
31.6
45.4
12.9
69.9
46,9

963,281
100.0

78.5

21.3

6.2

0.1

1.5
0.1

6.2
0.2

100. G
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100. C
100.0
100.0
100.0

57

FEDERAL RESERVE BULLETIN.

JANUARY 1,1918.

Total investment operations, exclusive of purchases of United Stales certificates of indebtedness, of each Federal Reserve Bank
during the months of November, 1917 and 1916, and the eleven months ending Nov. SO, 1917 and 1916.
Municipal warrants.

Bills bought in open market.
Bills discounted for
members and
Trade
Bankers'
Total.
F. R. Banks. acceptances.

Federal reserve bants.

City.

State.

$11,836,348
j 860,537,800 §11,336,466
61,395,877
1,071,601
! 2,663,667,292 60,324,276
19,479,626
692.769
!
31,478,602 18,786,857
22,913,336
84) 340 22,997,676
i!
47,582,704
10,465,939
10,465,939 |
56,279,290
4,645,617 i
, 4,645;
, , 617
23,049,369
1,046,114 :
| 1,046,114
i 162,899,350
7,777,837 :
| 7,777,837
'' 32,313,695
9,921 i
107,278 10,077,199
18,879,203
5,019,267
5!019,267 '
89,999,049
14,069,013
14,069,013 :
I
12,835,696
22,411,743
26,964,721 20,521,156 i 1,890,587

Boston....
New York
Philadelphia
Cleveland
Richmond. - Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total, November, 1917
Total, November, 1916
Total, 11 months ending November,
1917
Total, 11 months ending November,
1916

;

3,206,486,771
;
17,904,100
i
• 8,076,570,193
|
1 144,154,500

186,875,799 ; 4,3-16,457
45,928,700 2,618,400
777,363,414 ! 27,323.138
304,916,700 | 14,407,800

191,222,256

15,645,355 I

901,686,552

82,277,200

319,223,500

i
1-year I
2 per cent. 3 per cent. 113»} per cent. 14 per cent, i Treasury i
"
'
' notes. •

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

82,000

250,000

!

50 I

504,000 I
152,050
9,050 1
27,950

500 j.

Total, November, 1917
Total, November, 1916 85,397,100
Total, 11 months ending November, 1917. 13,997,200
Total, 11 months ending November, 1916. 42,878,350

$33,500

833,500

'"*"5,"550'

'"i30,"573

39,050
93,800

164,073
7,565,100

260,115 i 720,548

16,626,018

4,084,500 j 920,300

87,282,000

November,
1917.

Total.

Novem! November, November,
ber,
I 1916.
1917.
1916.

!
j
872,374,148 S16,026,800
'. S330,350 i 2,725,393,519 24,729,000
9,462,600
50,991,728
5,421,700
, 756,000 ! 71,336,380
2,106,900
152,050 j 66,897,279
27,834,659
3,389,800
9,100 !
163,945,464
5,852,400
40,091,532
3,214,600
2,013,400
27,950 j 28,984,352
75,018,316
1,026,800
26,904,709
2,197,900
4,202,700
500 I 49,376,964

I
S325,000 I

So, 350

255,900 ! 1,018,050
2,000
|
200
231,000 ,

Total.

Total investment operations.

United States bonds and Treasury notes.
Federal Reserve Banks.

125,023
427,600

37,043,700 i

48,547,100

All
other.

1,275,950 i 3,399,149,050
5,628,300 ;

Per ct.
20.1
31.0
11.9
6.8
2.7
4.3
7.3
4.0
2.5
1.3
2.8
5.3

Per cU
2.1
80.2
1.5
2.1
2.0
0.8
4.8
1.2
0.9
2.2
0.8
1.4

100.0
| 79,644,600 j

100.0

188,540 44,581,610 | 1,081,950
66,908,300 i 9,064,791,063 i
3,878,880

!

\

j 4,153,200
51,210,430

j 601,870,430 j

\

United States securities held by each Federal Reserve Bank on Nov. SO, 1917, distributed by maturities.
United States bonds with circulation priviFederal Reserve
Bank.

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

United States securities without circulation privilege.
i

per cent 3 per cent
2 per cent 2Panamas
consols of
loan of
of
19361930.
1918.
1938.
8750
50

6,400
915,100
640,600
1,862,500
100
323,050
7,155,850
2,450,900
2,428,750
15,784,050

8100
467,200
237,000
21,000
367,300
16,260
22,240
281,500
1,412,600

oer cent ! 3 P e r c e n t I 3 P e r c e n t
onr,
n? conversion! 1-year
°^0t
bonds of ! Treasury
19^5.
i 946 _47, ! n o t e s .

$50,000

I
2,653,666 $2,378,200 !
2,581,000
1,080,000
1,199,180

7,563,840

8529.000
1,255,500
549,200
414,800

10,300
427,400
1,153,300
"206," 250' 114,800
838,500
825,000
1,233,600

1,768,000

per
United
3 per 34 per cent 4cent
cercent
Liberty Liberty States
tificates
of
loan of
loan of
indebtedloan
1961.
1947.
ness.
of 1942.

82,194,000 i
4,493,000
2,548,000
3,221,000

- —ooo
1,491,000
3,368,000
1,444,000
1,340,000
1,784,000
1,430,000
1,500,000

5,177,450 j 6,526,400 j 26,782,000

8400

""066"

900

880,000
630,100 8347,950
1,100
2,026,100 348,300
42,900 81,550
215,950
9,300
7,000,000
27,950
7,500
2,400
11,250

3,400

10,017,300 818,450

Totai.

8262,000 83,065,750
4,655,000 11,431,600
205,000 3,303,400
3,414,500 14,930,160
395,000 3,640,550
4,308,150
1,920,000
809,000 18,183,600
249,000 3,926,400
473,500 3,701,490
438,000 11,071,090
7,224,800
1,823,000
4,305,000
365,000
15,009,000

89,091,990

Total United States bonds with circulation privilege, 829,937,940. Total United States securities without circulation privilege, 859,154,050.




58

FEDERAL RESERVE BULLETIN.

JANUARY 1 , 1 9 1 8 .

RESOURCES AND LIABILITIES OF FEDERAL RESERVE BANKSResources and liabilities of each Federal Reserve Bank and of the Federal Reserve System at close of business on Fridays,
Nov. 80 to Dec. 21y 1917.
RESOURCES.
[In thousands of dollars; i. e.f 000 omitted.l
Boston.

Gold coin and certificates in
vault:
Nov.30
Dec. 7
Dee.14
,
Dec. 21
Gold settlement fund—Federal
Reserve Board:
Nov.30
Dec. 7 . . . . .
Dec. 14...
Dec. 21
Gold with foreign agencies:
Nov.30
Dec. 7
Dec. 14
Dec. 21
,
Gold with Federal Reserve
Agents:
Nov.30
Dec.7
Dec. 14
,
Dec. 21
Gold redemption fund:
Nov.30
Dec.7
Dec. 14
Dec. 21
Legal-tender notes, silver, etc.:
Nov.30
Dec.7
Dec. 14
Dec. 21
Total reserves:
Nov.30
Dec.7
Dec.14
Dec. 21
Bills discounted for Members
and Federal Reserve Banks:
Nov.30
Dec.7
Dec.14
Dec. 21
Bills bought in open market:
Nov.30
Dec.7
Dec. 14
Dec. 21
United States Government longterm securities:
Nov.30
Dec.7
Dec. 14
Dec. 21
United States Government
short-term securities:
Nov.30
Dec.7
Dec.14
Dec. 21
Municipal warrants:
Nov.30
Dec.7
Dec. 14
Dec. 21
Due from other Federal Reserve Banks—net:
Nov. 30
Dec.7
Dec.14
Dec. 21
Uncollected items:
Nov.30
Dec.7
Dec.14
Dec. 21




New
York.

Phila- Cleve- Richdelphia. land. mond.

Atlanta.

32,506
30,228
26,345
24,266

312,190
317,141
322,880
338,355

17,815
17,461
16,740
18,427

24,735
24,685
24,446
30,200

6,163
6,250
6.165
6,210

825
1,033
15,106
4,101

40,660
76,795
113,858
23,002

23,091
24,456
27,176
24,867

60,833
36,085
38,749
50,950

42,495
40,200
19,340
18,526

11,238
11,046
8,644
13,470

3,675
3,675
3,675
3,675

18,112
18,112
18,112
18,112

3,675 4,725
3,675 4,725
3,675 ! 4,725
3,675 4,725

1,837
1,837
1,837
1,837

1,575
1,575
1,575
1,575

29,921
26,290
31,657
35,600

171,097
170,875
167,489
230,777

52,025
56,804
57,060
53,078

51,995
53,899
53,816
54,677

1,000
1,000
993
1,000

5,000
10,000
10,000
10,000

1,500
1,500
1,500
1,500

13
91
64
18

574
551
509

5,623
4,797
4,800
4,492

42,931
42,154
41,340
40,184

940
793
475
371

641
564
548
205

73,550
67,023
82,576
73,134

589,990
635,077
673,679
660,430

99,046
104,689
106,626
101,918

48,072
83,383
80,426
65,417

350,518
342,950
258,796

23,038
10,093
4,927
4,741

Chicago.

5,820 33,197
5,725 32,526
5,603 32,602
5,667

MinneSt.
Louis. apolis.

City.

San
Dallas. Francisco.

Total.

5,407
5,446
5,464
5,507

14,064
14,400
14,751
14,796

3,136
1,587
1,789
1,550

12,617
12,687
12,781
12,535

32,237
32,520
33,274
34,311

499,887
500,656
502,840
524,350

65,198
66,417
73,404
68,314

22,975
20,773
12,680
10,842

21,043
12,882
12,192
10,329

43,658
36,066
32,093
37,349

27,974
25,611
19,436
22,590

35,246
25,414
21,132
20,264

376,778
393,810
304,604

7,350
7,350
7,350
7,350

2,100
2,100
2,100
2,100

2,100
2,100
2,100
2,100

2,625
2,625
2,625
2,625

1,838
1,838
1,838
1,838

2,888
2,888
2,888
2,888

52,500
52,500
52,500
52,500

42,341 104,783
44,554
49,391 112,074
45,801 120,961

45,831
45,818
40,403
32,381

34,197
35,156
30,981

30,146
41,123
42,091
42,052

29,023
30,092
25,075
25,062

40,814
41,646
43,130

661,824
683,939
683,378
746,107

618
676
808
846

480
535
562
585

750
745
741

719
732
871
873

514
513
513
509

1,054
1,083
1,092
1,205

59
57
17

12,278
17,485
17,710
17,982

165
161
182
155

849
588
426
454

1,521
1,013
775
456

549
412
390

60
54
42
51

641
665
616
566

243
303
194
394

54,486
51,949
50,146
48,127

142,942
120,049
122.348
140,775

83,101
80,815
59,728
58,876

62,441
64,164
66,447
67,813

212,529 77,632 72,426 80,139
214,539 75,431 65,578 81,968
226,767 61,800 61,231 79,153
230,192 52,172 59,424 84,136

24,003
23,886
28,191
44,272

32,612
33,905
44,746
50,716

16,735
18,475
22,631
30,921

14,351
15,275
14,791
16,469

81,976 20,152 8,538 25,384
78,176 30,291 12,036 29,138
107,167 40,316 13,645 33,626

56,190
61,658
115,396
138,654

23,542
22,467
21,846
21,059

27,414
23,153
26,090
27,205

13,340
13,397
13,774
13,723

4,889
7,203
7,308
7,296

6,084
5,331
5,462
9,027

609
610
610
610

2,287
2,159
2,119
2,095

550
1,049
5,440
6,894

8,295
8,270
8,268

1,277
1,299
1,292
1,221

2,097
2,339

14,007
14,007
14,007
7,007

2,456
2,456
2,194
2,294

9,148
14,196
20,510
4,640

2,753
4,464

6,636
7,014
4,706
34,221

2,364
3,169
3,049
1,969

3,411
3,391
2,922
1,491

4,177
3,603
3,428

1,016
511
511
511

44
44
44
44

2,648

i 31,867
31,816
31,695
31,652

12
12

17,838

4,909

11,743 5,709
1,729 10,286
2,302 1,827

2,265
6,224
4,664

4,969
7,551
7,206

27,103

756,398
686,902
713,431

14,676
15,887
15,587
15,860

16,425
13,899
23,157
21,662

205,454
190,682
254,428
277,943

2,233
2,233
2,233
2,233

1,888
1,888
1,888
1,888

8,849
8,849
8,849
8,849

3,972
4,272
4,272
4,021

2,440
2,440
2,455
2,455

47,304
49,198
53,774
50,438

1,693
1,444
1,444
1,444

1,814
1,414
1,341
1,341

2,222
3,534
1,784
1,784

3,253
3,475
2,070
1,430

1,865
2,264
1,910
1,500

41,792
50,424
48,046
58,130

4,521
13,628
6,647
12,175

11,104
4,086
7,100

46
46
46
150

8,228
9,421
4,267
2,247

95,834 i 51,043 24,622 23,586 21,984 41,521 16,979 12,728 21,779
67,658 ! 34,069 17,829 21,555 25,265 43,705 18,670 12,724 22,726
78,997 I 39,772 19,216 15,442 23,880 39,836 18,545 10,832 25,302
75,882 I 32,765 22,549 16,521 19,612 50,271 18,403 11,579 26,535
i Difference between net amounts due from and net amounts due to other Federal Reserve Banks.
25,981
16,795
24,233
19,655

18,600
20,472

9,390 20,665
9,297 22,867

4,009
3,146
2,287
1,730

25
25
25
25

1,237

6,279

8,260 7,587
7,700 6,748
8,169 10,425
7,581 9,405

276
359
363
12,999

5,192

9,114

73,147 109,268 1,676,211
71,976 101,998 1,683,307
60,838 99,191 1,700,384
63,796 101,004 1,693,670

1,429
914
994
1,102

"i,*5oi

1,112
7,640
1,912
18,139

126,332
131,494
141,375

14,769
15,719
12,762
13,318

22,334
13,857
10,839
16,484

373,160
310,572
319,656
323)574

1,126

JANUARY 1,1918.

59

FEDERAL RESERVE BULLETIN.

Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve System at the close of"businesson Fridays,
Nov. 30 to Dec. 21, 1917—Continued.
RESOURCES—Continued.
[In thousands of dollars; i. e., 000 omitted.]
New

Boston. York.
5'; per cent redemption fund
against Federal Reserve Bank
notes:
Nov.30
Dec.7
Dec. 14
Dec. 21
All other resources:
Nov.30
Dec.7
Dec. 14
Dec. 21
Total resources:
Nov.30
Dec.7
Dec. 14
Dec. 21

Phila- Clevedelphia. land,

Richmond.

Atlanta.

Chicago.

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

137
137
137
137

400
400
400
400

173,706
180,360
194,966
170,760

1,208,127
1,131,777
1,239,354
1,141,008

|203,075
^202,411
|206,336
1211,902

242,533
arxa. t»t»t>
215,966
235,671
285,570

Total.

537
537
537
537

25
155
35
172

204
378
396
364

113
34

1,009
945
639
517

681
551
580

|14O,428
jJ-^tv/, i * o
|141,130
:122,175
!l28,067

1110,149
!•»••»•", • " »
1123,018
|125,996
1125,511

379,459
" I u. it»j7
363,161
368,947
"
"
407,032

130,165
140,203
1129,768
134,841

106,490
108,700
102,415
104,987

8,646
8,681

2,589 3,379
2; 591 I 3,393
2,605 ''
2,615 3,396

2,791 I 4,036
2,796
4,076
2,796
4,086
2,795 i 4,146

68,500
69,048
69,440
69,852

11,681 11,834
13,597 8,689
6,723 5,397
8,501 12,631

13,438 42,928
13,778 21,747
2,692 10,864
5,330 39,487

129,285
221,761

152,729
!l55,428
1151,180
1159,307

175
695
1,155
1,045

65
114

2,499
2,968
2,810
2,678

117,580
1117,145
107,758
^109,054

172,109
162,684
160,129
184,111

3,104,784
3,001,836
3,125,554
3,142,956

LIABILITIES.
Capital paid in:
Nov.30
Dec.7
Dec. 14
Dec. 21
Government deposits:
Nov.30
Dec.7
Dec. 14
Dec. 21
Due to members—reserve account:
Nov.30
Dec.7
Dec. 14
Dec. 21
Collection items:
Nov.30
Dec.7
Dec. 14
Dec. 21
Due to other Federal Reserve
Banks—net:
Nov.30
Dec.7
Dec. 14
Dec. 21
Other deposits, including foreign
Government credits:
Nov.30
Doc. 7
Dec. 14
Dec. 21
Federal Reserve notes in actual
circulation:
Nov.30
Dec.7
Dec. 14
Dec. 21
Federal Reserve Bank notes in
circulation—net liability:
Nov.30
Dec.7
Dec. 14
Dec. 21
All other liabilities:
Nov.30
Dec.7
Dec. 14
Dec. 21
Total liabilities:
Nov.30
Dec.7
Dec. 14
Dec. 21




|
5,744
5,804
5,804
11,720
9,415
4,619

67,347
76,614
80,684
70,272

18,059
18,143
18,173
18,207

5,613
/, 500
5,850 7,929
5,850 8,019
5,889 ; 8,019

3,613
3,650
3,653
3,664

2,723
2,735
2,819
2,811

9,032

3.441
3.442
3,443
3,474

21,057
66,299
23,760

10,209 22,282 14,289
5,514 23,102
2,434 6,769 4,850
8,440 60,465 10,219

4,680 39,300
13,462 12,685
13,416 2,146
8,043 28,549

12,635
17,074
3,076
8,307

746,163
656,353
730,965

46,532
72,562
78,297 104,682 43,926
77,598 116,466 44,604
77,062 99,007 41,834

34,472
34,953
38,526
37,069

16,161
14,438
15,522
17,368

15,057
14,594
11,789
13,397

10,401
10,893
8,223
12,019

20,609

7,364

19,087
13,895
17,818
14,612

40,058 26,832
43,281 33,038
47,660 27,348

7,726
9,875
19,141

1,240
28,479

61,443
63,876
66,038
70,976

923

862
1,067
173,706
180,360
194,966
170,760
I

23,776
20,937
22,333
26,667

13,044
13,752
13,276
13,981

4,066
4,289
4,168
4,917

1,208,127
1,131,777
1,239,354
1,141,008

435

620 :.

203,075
202,411
i206,336
|211,902

"1*114

3,055
2,997
3,041
2,468

190
115
221
84

94
140,428
141,130
122,175
128,067

9,522
10,531
10,691
9,345

110,149
123,018
125,996
125,511

379,459
363,161
368,947
407,032

130,165
140,203
129,768
134.841

106,490
108,700
102,415
104,987

231,776
189,861
196,767
205,819
17,091

4,215

72

460
631

242,533
215,966
J235,671
285,570

6,531
6,519
6,977

1,184

4,697
3,480
2,711
2,372

102
227
181

588
581

13,634
13,111
10,109
11,528

609

342,336 I 77,635 76,910 53,573 57,802 142,563 54,066 45,785
358,004 82,403 83,043 55,858 60,896 150,824 55,589 47,152
369,667 86,830 88,208 57,279 62,938 156,987 57,935 47,871
58,953 65,486 173,806 59,532 49,161
381,544

656
913
2,998
3,306

68,876 45,492
1,489,370
73,123 44,938 67,158 1,437,174
72,870 47,601 70,907 1,549,030
69,208 45,058 64,747 1,389,434

1,918

13,865
11,309
8,770
7,971
9,021

160,477 46,789 40,404
165,873 50.231 41,026
175,977 51,817 41,015
162,297 49,463 39,77i!

46,693
48,799
51,040
54,119

47,697
47,918
48,150
47,780

19,473
15,586
14,282
14,258

50,480 1,050,983
I 56,175 1,110,537
60,442 1,153,385
I 63,483 1,227.642

8,000
8,000
8,000
8,000

8,000
8,000
8,000
8,000

311
311
361
397

75

2,629
3,062
5,365
6,190

172,109
162,684
160,129
1184, 111

3,104,784
3,001,836
3,125,554
3,142,956

152,729
155,428
151,180
159,307

117,580
117,145
107,758
109,054

1 Difference between net amounts due to and net amounts due from other Federal Reserve Banks.

60

FEDERAL RESERVE BULLETIN.

JANUARY 1, 1918,

FEDERAL RESERVE NOTES.
Federal Reserve note account of each Federal Reserve Bank at close of business on Fridays, Nov. 30 to Dec. 21, 1917.
[In thousands of dollars; i. e., 000 omitted.J

Boston.

Federal Reserve notes received
from agent—net:
Nov.30
63,641
Dec.7
j 65,610
Dec. 14
j 67,877
Dec.21
.'
Federal Reserve notes held by \
; bank:
J
, -tE.Nov.30
2,198
•
Dec.7
1,734
Dec.14
* """
?*.: Dec.21
Federal Reserve notes in actual
circulation:
Nov.30
! 61,443
Dec. 7
03,870
Dec.14
66,038
Dec.21
|.
Gold deposited with or to credit i
;: of Federal Reserve Agent:
!
:". Nov.30
29,921
I" Dec.7
26,290
" $T>ec.l4
31,657
f%; Dec.21
35,600
Paper delivered to Federal Re- !
serve Agent:
Nov.30
33,758
Dec.7
39,359
Dec.14
36,369
Dec.21
1 37,376

Phila- Cleve- Richdelphia. land. mond.

New

San
Francisco.

St.
Minne- Kansas
Louis, apolis. City. Dallas.

Atlanta.

Total

I

81,355
87,134
93,390

376,917
395,515
411,329

59,157
62,820
64,657

!
!
3,720 ! 3,585 I 1,912
1,355
4,731 i 4,156
1,870 | 1,924 .
6,560 i 2,908 i 1,358 j 1,719 *

34,581
37,511
41,662

342,
358,

80,495 • 55,485
87,199 I 57,728
91,116 ! 58,637

77,635 ! 76,910 j 53,573 57,802
82,403 ;' 83,043 I 55,858 00,896
86,830 ! 88,208 ! 57,279 62,938

147,358 58,828 ! 47,193 49,475
157,673 58,815 i 48,152 53,277
161,259
, _ . 59,940 : 48,97755,398
179,371 i 61,258 | 50,032 57,428

j
4,795 i 4,762 ! 1,408
6,849
4,272 ' 3,226 : 1,000
5,565 2,005 ! 1,106
1,726 i
871

48,039
48,126
48,677
48,226

58,402
62,618
67,750
70,234

1,126,345
1,184,667
1,229,007
1,2

2,782
4,478
4,358
3,309

342
208
527
446

7,922
6,443
7,308
6,391

69,362
74,130
75,622
67,427

I

50,480 j 1,056,983
56,175 1,110,537
60,442
63,843 I 1,

142,563
150,824
156,987
173,806

54,066
55,589
57,935
59,532

45,785
47,152
47,871
49,161

46,693
48,799
51,040
54,119

47,697
47,918
48,150
47 780

52,025 i 51,995 31.867 ! 42,341 104,783
171,
170, 875 56,804
6,804 !!53,899
,899j 31,816
,816 • 44i
106,698
167 489 ;! 57,060 I 53,816 i 31,695 49*, 391 112,074
230 770 53,078 I 54,677 ! 31,652 45,801 120,961

45,831
45,818
40,403
32,581

34,197
35,156
30,981
30,936

30,146
41,123
42,091
42,052

29,023
30,092
25,075
25,062

38,598 : 661,824
40,814
683,939
41,646
683,378
43,130
746,307

207,362
239,601
276,858
201,458

13,012
14,203
21,464
38,792

13,392
13,544
21,046
21,425

19,777
12,534
13,442
16,398

20,000
20,825
24,977
25,157

34,506
30,155
30,647
40,914

'
I
j
I

29,359
30,356
38,192
46,451

!
!
|
|

29,558 :
33,348 ,
37,419 !
48,363 |

30,14716,875
32,07618,852
36,49216,218
44,87321,753

43,186
51,620
49,843
59,114

490,932
536,473
602,967
602,074

Federal Reserve note account of each Federal Reserve Agent at close of business on Fridays, Nov. SO to Dec. 81,1917.
[In thousands of dollars; i. e., 000 omitted.]

New
Boston. York.

St. i MinneChicago. Louis.
I apolis.

City.

Dallas.

San
Fran-

Total.

73,300 80,340
74,820 I 86,020
74,820 87,020
78,100

191,720
202,280
209,260
222,220

70,740
72,740
74,740
76,740

67,540
67,540
67,540
68,500

64,200
68,440
73,640
76,240

1,590,340
1,640,600
1,693,320
1,747,760

14,815
14,972
15,223
15,370

10,243
10,330
10,493
10,582

6,062
6,147
6,501

7,962
7,975
8,390
8,412

9,197
9,238
9,663
9,708

11,365
11,563
11,742
11,812

11,851
11,964
12,043
12,194

5,798
5,822
5,890
606

234,185

94,435
95,139
104,056
108,917

59,848
59,597
62,730

70,097
75,690
76,527
77,438

185,658
196,133
202,759
215,631

61,738
62,845
64,168

52,283
52,242
53,817
55,772

59,375
61,177
62,998
64,928

55,689 58,402
55,576 I 62,618
55,497 i 67,750
56,306 I 75,634

1,356,155
1,403,967
1,450,867
1,508,189

14,080
9,940
6,980
10,660

13,940
7,940
12,940
5,940

3,000
2,120
960
2,800

10,940
12,870
11,870
9,970

38,300
38,460
41,500
36,260

2,910
4,030
2,490
2,910

5,090
4,090
4,840
5,740

9,900
7,900
7,600
7,500

7,650 !
7,450 i
6,820 i
8,080 5,400

229,810
219,300
221,860
213,120

81,355
87,134
93,390
96,008

80,495
87,199
91,116
102,977

55,485
57,728
58,637
59,930

59,157 i 147,358
62,820 ! 157,673 58,815
64,657 ! 161,259 59,940
67,468 j 179,371 61,258

47,193
48,152
48,977
50,032

49,475 I 48,039 58,402
53,277 i 48,126 62,618
55,398 48,677 67,750
57,428 48.226 70 234

1,126,345
1,184,667
1,229,007
1,295,06

Philadelphia.

Cleveland.

Richmond.

97,680

605,480
623,680
646,680
659,880

111,480
113,980
117,420
124,600

102,880
103,680
112,720
117,720

17,259
17,810
18,543
18,600

115,143
115,365
118,751
118,963

16,045
16,906
17,050
17,932

8,445
8,541
8,664
8,803

74,221 490,337
77,310 508,315
77,137 527,929
79,080 I 540,917

95,435
97,074
100,370
106,668

10,580
11,700
9,260
6,260

113,420
112,800
116,600
111,600

63,641
65,610
67,877
72,820

376,917
395,515
411,329
429,317

Atlanta.

FEDERAL RESERVE NOTES.

Received from Comptroller:
Nov.30
Dec.7
Dec.14
Dec.21
Returned to Comptroller:
Nov. 30
Dec.7
Dec. 14
Dec.21
Chargeable to Federal Reserve Agent:
Nov.30
Dec.7
Dec.14
Dec.21
In hands of Federal Reserve
Agent:
Nov.30
Dec.7
Dec. 14
Dec.21
Issued to Federal Reserve
Bank, less amount returned
to Federal Reserve Agent
for redemption:
Nov.30
Dec.7
Dec.14
Dec.21




91,480
95,120

!
!
!
i

69,700 i 61,480
70,820 I 61,480
70,820 63,480
72,580 ! 65,480

I

242,953
239,571

61

FEDBKAL RESERVE BULLETIN.

JANUARY 1,1918.

Federal Reserve note account of each Federal Reserve Agent at close of business on Fridays, Nov, SO to Dec,

31,1917—Con.

[In thousands of dollars; i. e., 000 omitted.]
New
Boston. York.

Phila- Clevedelphia. land.

Richmond.

Atlanta.

San
St.
Minne- Kansas Dallas. FranChicago. Louis.
apolis. City.
cisco.

Total.

FEDERAL RESERVE NOTES—

continued.
Collateral held as security for
outstanding notes:
Gold coin and certificates
on hand—Nov.30
Dec. 7
Dec. 14
Dec. 21
In gold redemption
fund—
Nov.30
Dec. 7
Dec. 14
Dec. 21
Gold settlement fund,
Federal Reserve Board—
Nov.30
,
Dec. 7
Dec. 14
Dec. 21
Eligible paper, required
minimum *—
Nov.30
Dec. 7
Doc. 14
Dec. 21
Total—
Nov.30
Dec. 7
Dec. 14
Dec. 21

24,410 162,820
20,810
26,209 156,920
30,210 145,420
3,511
3,480
3,448

4,220
4,220
4,220
4,220

1 3,603
j 3,604
I 3,603

152
67
484
396

30,000
30,000
30,000
35,000

31,500 35,670
31,500 37,970
30,000 42,970
30,000 39,470

104,631
106,631
111,590
120,565

29,330
30,330
36,330
42,930

28,500
33,300
37,300
48,300

23,618
25,912
26,942
28,278

16,816
18,266
15,266
21,667

42,575
50,975
49,185
58,410

81,355
87,134

80,495
87,199
91,116
102,977

4,001
4,730
4,586
5,029

75,000

43,804
47,854
48,254
43,829

33,720 205,820
39,320 224,610
36,220 243,840
37,220 198,540
63,641 376,917
65,610 395,515
67,877 411,329
72,820 429,317

96,008

3,758
367
4,697 j
316
4,630 ! 1,695
5,523 1,652

2,513
2,513
2,513
2,513

3,068
2,980
2,818
2,728

8,277
8,055
10,569
10,537

2,000
2,000
2,000
2,000

18,237
19,202 !
19,186 :i
14,154

55,485 59,157
57,728 62,820
58,637 64,657
i 59,930

!
13,102 !.
13,102 j .
13,102 I.
13,102 '.
1,595
1,554
1,379
1,334

j
!
,
j

....!
....
...J
....I
1,786
2,263
2,231
2,192

14,080
14,080
14,080
14,080 |

242,985
240,351
239,833
227,302
2,717
2,693
2,625
3,709

33,714
35,773
39,471
41,281

12,474
13,574 38,121
8,474 39,021
8,474 39,421

385,125
407,815
404,074
477,524

I 12,997 12,996 19,329 19,016 19,804
I 12,997 12,996 12,154 18,034 21,804
19,537 17,996 13,307 23,602 26,104
28,877 19,096 15,376 23,164 27,104

464,521
500,728
545,629
548,962

I
!
!
j

2,013
2,500
2,485
2,463

j 41,305 19,500 28,360
I 40,805 20,500 38,860
i 35,405 16,500 | 39,860
27,405 16,500 39,860

147,358
47,193
157,673 58,815 48,152
161,259 59,940 48,977
179,371 81,258 50,032

2.438
2; 521

49,475 48,039
53,277 48,126
55,398 48,677
57,428

58,402
62,618
67,750
70,234

i 1,126,345
i1,184,667
I1,229,007
i1,295,069

1 For actual amounts see item "Paper delivered to Federal Reserve Agent,"..on p. 60.

Member Bank Condition Statement,

Federal Reserve Banks at the close of business
I Friday of each week, beginning December 7,
Under date of November 19, 1917, the fol- ! and that a summary be made by each Federal
lowing letter was sent out to all Federal Re- Reserve Bank and telegraphed to the Federal
Reserve Board not later "than the following
serve Banks:
Thursday,
for publication when the Board's
In view of the extensive fiscal operations \ weekly statement
is issued on Saturday.
which will be undertaken by the Government I As the leading State
and trust comduring the period of the war, it seems most ! panies are now membersbanks
of
the
system, it will
desirable that those in charge of these opera- I be possible for the first time regularly
pubtions and the member banks themselves should i lish statistics which will include figuresto from
be able to have a clear view at all times of the ;
the national banks and the State banking
financial situation. To this end the Federal ! both
institutions. The necessary forms are transReserve Board has decided that the member . mitted
herewith and you are requested to inbanks in 82 of the most important cities should ' struct the
banks of those cities on the
be requested to transmit once a week "to their I list which member
are
in
your
district. If you desire to
respective Federal Reserve Banks, a condensed ; have any additional cities
your district added
statement showing the principal items, such as to the list, please notify in
the
Board promptly.
deposits, loans, investments, cash, GovernYour usual cordial and effective cooperation
ment obligations owned, and loans on such will
be appreciated by the Board.
securities. The preparation of these state- ;
ments will involve but little labor and when I Three of the Federal Reserve Banks, in retabulated they will reflect quite accurately the | sponse to this letter, requested permission to
changing conditions in money and credit. The
information given will be most valuable to the ! add cities in their district to the list prepared
business community and to the banks. It is I by the Board, and thair requests were granted
intended that the figures be reported to the j This resulted in increasing the list to 96 cities.




62

FEDERAL RESERVE BULLETIN.

Almost all of the banks in these cities have
furnished the requested data and it is hoped
that the few banks which have not as yet done
so will join the list of reporting banks in the
near future, thus making the weekly figures
complete and comparable. Below is given a
list of the 96 cities selected, including, beside
the 57 reserve cities, 39 other cities.
RESERVE CITIES.

Boston, Mass.

OTHER LARGE CITIES.

Hartford, Conn.
Providence, R. I.
New Haven, Conn.
Springfield, Mass.

New York, N. Y.
Brooklyn, N. Y.
Albany, N. Y.

Buffalo, N. Y.
Newark, N. J.
Rochester, N. Y.
Syracuse, N. Y.
Jersey City, N. J.
Bridgeport, Conn.

Philadelphia, Pa.

Scran ton, Pa.
Camden, N. J.
Wilmington, Del.

Cleveland, Ohio.
Pittsburgh, Pa.
Cincinnati, Ohio.
Columbus, Ohio.

Toledo, Ohio.
Erie, Pa.
Canton, Ohio.
Youngstown, Ohio.
Dayton, Ohio.

Richmond, Va.
Baltimore, Md.
Washington, D. C.
Charleston, S. 0.

Charleston, W. Va.
Huntington, W. Ya.
Norfolk, Va.
Lynchburg, Va.
Roanbke, Va.
Charlotte, N. C.
Raleigh, N. C.
Wilmington, N. C.
Columbia, S. C.

Atlanta, Ga.
New Orleans, La.
Nashville, Tenn.
Chattanooga, Tenn.
Birmingham, Ala.
Savannah, Ga.

Jacksonville, Fla.
Knoxville, Tenn.




RESERVE CITIES.

JANUABY 1,1918.

OTHER LARGE CITIES,

Chicago, 111.
Detroit, Mich.
Milwaukee, Wis.
Indianapolis, Ind.
Des Moines, Iowa.
Sioux City, Iowa.
Cedar Rapids, Iowa.
Dubuque, Iowa.

Grand Rapids, Mich.
Peoria, 111.
Joliet, 111.

St. Louis, Mo.
Louisville, Ky.

Memphis, Tenn.
Evansviile, Ind.
Little Rock, Ark.

I

Minneapolis, Minn.
St. Paul, Minn.
Kansas City, Mo.
Omaha, Nebr.
Denver, Colo.
St. Joseph, Mo.
I Lincoln, Nebr.
Kansas City, Kans.
Topeka, Kans.
Wichita, Kans.
Pueblo, Colo.
Muskogee, Okla.
Oklahoma City, Okla.
Tulsa, Okla.

Duluth, Minn.

Dallas, Tex.
Houston, Tex.
Fort Worth, Tex.
San Antonio, Tex,
Waco, Tex.
Galveston, Tex.

El Paso, Tex.
Shreveport, La.

San Francisco, Cal.
Los Angeles, Cal.
Portland, Oreg.
Seattle, Wash.
Spokane, Wash.
Tacoma, Wash.
Salt Lake City, Utah.
Ogden, Utah.

Oakland, Cal.

Principal

63

FEDEKAL KESERVE BULLETIN.

JANUARY 1,1918.

resources and liabilities of member banks located in central reserve, reserve, and other selected cities as at close of
business on Fridays, Dec. 7 and 14, 1917.
[In thousands of dollars; i. e.f 000 omitted.}
1. TOTAL FOR ALL R E P O R T I N G BANKS.
; PhilaBoston. Ncw York.! del; Phia.

Number of banks reporting:
Doc. 7
.*.
36
94
Dec. 14
36
94
U. ! S. securities owned:
' Deo. 7
1555,258 31.179.896
$*" Dec. 14
i 51,522 1,009,659
Loans secured by XJ. S. J
bonds and certificates:
I
230,028
Dec. 7
j 41,753
Dec. 14
i 42,880
224,335
All other loans and investments:
Dec. 7
654,724 4.168.. 407
Dec. 14
._.... 644.397 4,086,521
Reserve with Federal Reserve banks:
Dec. 7
54,741
626,724
Dec. 14..
55,086
714,222
Cash in vault:
!
Dec. 7
1 28,083
131, 7,06
Dec. 14
•• 22,054
128,103
N e t demand deposits on j
which reserve is com- :
:
puted:
Doc. 7
532,269 4,107,195
Dec. 11
!550;236 4.178.671
Time deposits:
•
Dec. 7
i 79.077
325,832
Dec. 14
1 77;229
307,234

Atlanta.

Cleve- i Eiehland. | mend.

73 !
71 •

!

28 I
35 I

67
67

San 1
Fran- j Total.
cisco. |
1
|

St.
! Kansas Dallas.
°- | Louis. ! apolis. i' Ci
City.

79 !
83 !

42 1

31
36

65
64

42 |

607
620

' 861 18142. 224 1839,581 : $29,774 i 591,076 [S40,415 $14,521 !S30,832 1330.465 ••$62,242 81,763,125
1346,
i 65,204 ! 163,995 I 39,115 j 35,825 | 76,479 : 35,833 I 11,485 I 28,378 ! 27.822
1,602,125
i
i
;
;
!
I 22.936 j 17,743 i 9.280
2,072 I 28.916 ; 9.122
3,178 ! 2,087
1,005
5,° 87.! 373,517
1,082
1,655 ! 2,613
5, 80 j 376,955
4,316 | 3«.;503 | 8;530
i 23,754 I 20,750 i 10,457
",540,629 795, 861 1328.213 1186,979 !l, 228,727 J354,960 216,889 428,064 176,431 1462,371 i 9,542,255
415 1318,225 J264 ; 893 | 1 , 239,978 1356,824 214; 185 421,633 ; 179,608:466,364 i 9,618,320
277
i 54.533 i
120 ;

883 | 28.800 16,015 i 126.161 ! 35,249 18,094
i 35,952 17,882
548 ! 29; 173 | 26,036 133,026
j

! 22.655 i
i 22,251 j

37.
936 ! 19.292 I 10.676 I 58.570 ! 12,269 13,094
40,
295 ; 17,531 | 14,119 : 59; 949 ! 13,243 10,226

42, 868 I17,969 41,728 ! 1,137,765
42,684 j19,143 46,380 j 1,266,239
I
17,599 10,501 22,797 j 388,228
18,116 12;i 461 23,008
381,356

|499,096 , 598.570 263.696 130.284 : 913.088 126-4.915 ;163,018 381,060 166,873 ,370,903
|502,511 ! 656,399 1261.204 J203.983 ! 689,398 j267,693 164,266 381,150 184,847 ;374,257
18,986 ! 179,254 1 54,678 ! 56,421 274.350 ; 86,600 ;;37,100 41,157
18,633 I 204.678 i 46,143 j 64,408 280,140 ! 85; 222 ; 37,716 48,183

8,390,965
8,714,615

19,300 ! 87,151 1.259.906
20,437 ! 90,190 1,2S0',215

2. MEMBER BANKS IN CENTRAL RESERVE CITIES.
CENTRAL RESERVE CITIES.
Number of banks rcnorting:
Dec. 7
"
"Dee. I*...
;
U. S. securities ownod:
Dec. 7
Dec. 14...
i
Loans secured by U. S.
bonds and certificates:
Dee. 7
Dec. 14...
All other loans and investments:
Dec. 7
Deo. 14
Reserve with federal Reserve bank:
Dec. 7
3)eo.l4...
Cash in vault:
Dec. 7...
Doc. 14
Net demand deposits on
which reserve is computed:
Dec 7
Dec. 14...
Time deposits:
Dec. 7
D e c . 14




!
i

51
54

. 1

$1,120,417
955,471
201,829
199,289

i

;
;

..:

!

•

I

|

i

1

i

15
15

105
105

833.124 $26.834
4 1 . 7 9 1 22.425

SI. 200.375
1,019,687

38
36

18.881
19.612

228,544
225'. 351

7. 834
Q, 950
j

3. 750.170
3-721,542

!
!

590.525
676,663

I
j

116,015
110,685

1 .
j

3.730 973
3, 796,197
|

287.854
269,947

;

•

i

!

.

I
i

:

!

j

!

1 813,388 252,325
! 811,728 255,919

!
!

I
'•

91,110
96.974

28,117
28,527

712,752
802,164

j
I

!
j

39,^33
39,070

6.815
7.459

162,263
157; 214

i

4.815,883
4,789,219

........

! j
"•

;

187,598
: 661,905
698.278 188.324

i

!
,

;

j

12O.nSfl : 7fi.5«8
! 130,125 ! 66,139

4,580,474
4,682,799
493,987
466,211

64

FEDERAL RESERVE BULLETIN.

JANUARY 1,1918.

Principal resources and liabilities of member banks located in central reserve, reserve, and other selected cities as at close of
business on Fridays, Dec. 7 and 14, 1917—Continued.
[In thousands of dollars; i. e., 000 omitted.]
3. MEMBER BANKS IN RESERVE CITIES.
Boston. New York.

Philadelphia.

Cleveland.

33

49

Richmond.

Atlanta.

San
Minne- ! Kansas Dallas. FranSt.
Chicago. Louis.
apolis. City.
cisco.

Total.

OTHER RESERVE CITIES.

Number of banks reporting:
Dec. 7
Dec. 14
U. S. securities owned:
Dec. 7
Dec. 14
Loans secured by United
States bonds and certificates:
Dec. 7
Dec. 14
All other loans and investments:
Dec. 7
Dec. 14
Reserve with Federal Reserve Bank:
Dec. 7
Dec. 14
Cash in vault:
Dec. 7
Dec. 14
Net demand deposits on
which reserve is computed:
Dec. 7
Dec. 14
Time deposits:
Dec. 7
Dec. 14

14
14

16
16

34

$41,894
38,063

$41,902 540,561 $126,265 825,169 jS23,761
37,892 58,788 151,311 25,430 I 29,234

34,238
35,592

1,999
22,465 i 16,284
7,820
4,158
23,270 ; 19,116 8,799
!
264,185 486,479 ! 683,441 241,229 155,475
231,247 459,920 828,707 243,871 228,058

480,168
471,017
43,999
44,355
20,878
15,164

413,763
433,611
29,271
27,979

12,764
15,592

25,318
24,088

50,876
50,915
10,130 20,046
10,011 19,908

451.475
235,528 453,906
22,315 13,893
22,102 13,532

i
I
I
I

67,955
84,433
32,886
35,175

$27,233 ! 87,039 $12,099
24,113 i 6,613 9,386

357

28,378

826,225 $59,853
24,152 54,710

$462,833
488,070

2,024
2,553

4,984
4,651

115,604
126,708

49,800 182,307 1428,064 146,528 448,253
51,781 180,195 421,633 151,460 453,316

3,920,699
4,087,760

7,913
9,340
354,770
366,555

40
40

29

1,019
1,017

916 i 3,178
965 ! 1,655

23,067
24,134

13,780 I 28,795
23,573
32,710

3,878
4,077

15,972
15,625

42,868
42,684

15,510
16,967

40,773
45,385

372,791
408,946

15,115
13,763

12,219 |

16,440
18,395

2,619
2,769

10,778
8,413

17,599
18,116

8,697 22,176
10,690 22,321

186,644
186,944

37,762 138,074 1381.060 142,080 357,559
40,182 139,340 1381,150 160,928 361,060

3,204,077
3,435,318

I 519,549 197,114 108,892 !
i 594,631 199,905 178,365 |
: 152,274 41,115 44,966
; 182,100 33,882 52,078

223,113
256,712
116,234
121,470

8,947 25,593 I 41,157 13,180
8,832 25,607 | 48,183 16,122

86,617

595,562
641,548

2
2
7
2
$4,240 $2,389
3,670 2,098

145
147

4. REPORTING BANKS OUTSIDE RESERVE CITIES.
COUNTRY BANKS.

Number of banks reporting:
Dec. 7
Dec. 14
22
U. S. securities owned:
Dec. 7
813,364
Dec. 14
13,459
Loans secured by United
States bonds and certificates:
Dec.7
7,515
Dec.14
7,"~
All other loans and investments:
Dec. 7
174,556
Dec.14
173,380
Reserve with Federal Reserve i
Bank:
J
Dec.7
1 10,742
Dec.14
10,731
Cash in vault:
Dec.7
7,205
Dec.14
6,890
Net demand deposits on
which reserve is computed:
Dec.7
...118,506
Dec.14
116,625
Time deposits:
Dec.7
49,806
Dec.14
49,250




24
24

317,577
16,296

25
$6,300 $15,959 $14,392
6,416 12,684 13,685

471
484

86,013
6,591

$10,719
10,575

$6,542
6,795

82,422
2,099

2,152
2,551

269
563

117

429

24,396

60,569 : 52,835 34,582
61,695 ; 49,094 33,990

-I 29,903 i 14.118
.j 28,148 j 13;048

805,673
741,341

1,459
1,634

1,460
1,658

73
158

154,052 I 54,150 112,420
133,732 39,357 97,708

86,9S4
74,354

31,504

6,928 5,733
7,115 j 5,039
5,050 4,177
5,120 3,768

2,235
2,463

15,435
9,454

10,881 ! 3,657
13,478
4,205
8,611 : 2,609
7,407 ! 2,343

4
4

13
13

25

1,396
1,900

3,256
3,342
2,697
2,484

j
,
i
|

63

3,254 2,122
3,348 2,257
2,835 ! 2,316 !.
3,015 | 1,813 |.

142,588 ; 47,621 i 79,021 i 66,582 ! 21,392
28,070 • 39,555 24,942
146,946 ! 48,605 61,768 | 61,299 i 25,618 34,408 | 39,187 24,926
15,663
15,185

5,093 26,980 i 13,563 : 11,455
5,101 j 22,578 i 12,261 ; 12,330

28,581
28,547

$99,917
94,368

10,055 ! 11,507
10,251 | 12,109

2,459!
2,176 !

955
975

52,222
55,129

1,804 :
1,771 j

621
687

39,321
37,198

24,793 i 13,344
23,919 \ 13,197
6,120 !
4,315 I

534
529

606,414
170,357
172,456

65

FEDERAL RESERVE BULLETIN".

JANUARY 1,1918.

EARNINGS ON INVESTMENTS OF FEDERAL RESERVE BANES.
Average amounts of earning assets held by each Federal Reserve Banh during November, 1917, earnings from each class of
earning assets, and annual rates of earnings on the basis of November, 1917, returns.

i
I

Average balances for the month of the several classes of earning assets.

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

$24,939,976
309,990,240
15,758,446
21,199,920
13,050,494
12,594,541
79,690,446
19,177,484
12,697,200
32,981,954
9,346,503
16,927,037

§26,354,677
48,661,057
23,909,654
31,789,651
10,667,544
4,476,948
6,156,392
5,944,533
8,740,600
4,861,153
10,263,862
13,809,363

508,352,241 j

195,635,434

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




Bills disBills
counted, bought
members in
open
a n d F . R . market.
Banks.

I
j
\
i
|
i
!
;
:
j
i
'

I
i United
j States
j securiI ties.

$75,287 879,043 |
798,928 147,822 j
65,373 |
47,258
88,620 I
67,361
30,454 i
40,897
13,028 i
38,991
17,393 i
236,986
15,949 j
57,980
23,757 I
40,070
12,925 •!
108,324
30,222 ; 30,539
55,174 , 42,856 i

§5,876
76,729
8,696
29,307
8,191
24,436
60,401
8,906
8,750
21,286
15,089
11,324

1,597,478 j 567,759 \ 278,991

$3,191,750 jj
33,075,779 :
3,495,700
12,008,676 i
3,619,084
8,510,148 :
23,071,967
3,956,400
3,&51,100
11,063.890
6,769', 067
5,326,983
117,940,544

Municipal
warrants.

Total.

$54,486,403
392,743,601
43,187,434
65,010,406
27,337,122
197,813 :
25,779,450
108,918,805
29,078,417
25,400
25,314,300
48,906,997
46,265 '•
26,425,697
36,063,383

$1,016,525
25,634 :
12,159 :

1,323,796 j

883,252,015

Calculated annual rates of earnings from—

Earnings from—
Banks.

United States ]'
securities.

ket.

Municipal
warrants.

S3,030

85
44

599
100
154
4,012

Total.

$160,206
1,026,509
121,412
185,332
79,542
77,054
314,780
82,835
72,677
142,535
76,004
109,354
2,448,240

Bills disBills
counted, bought
members in
open
and F. R. market.
Banks.

United
States
securities.

Municipal
warrants.

Total.

Per cent. Per cent. Per cent. Per cent.! : Per
3.67
3.03
3.65
3.03
2.48
3.57
3.50i
3.64
3.02
3.32
4.05 !
3.87
2.97
3.39
4.44 I
3.81
2.75
3.47
i
3.77
3.49
3.54
3.68 i
3.36
3.82
3.54
i
3.68
2.74
3.26
3.84
2.77
3.31
4.77,
3.98
2.34
3.24
3.88
2.67
3.57
4.00 i
2.58
3.78
3.42

3.53

2.86

3.69 !

cent.
3.45
3.05
3.42
3.47
3.54
3.64
3.46
3.47
3.49
3.55
3.45
3.68
3.37

66

FEDERAL RESERVE BULLETIN.

JANUARY 1,

1918.

GOLD IMPORTS AND EXPORTS.
Gold imports and exports into and from the United States.
Iln thousands of dollars; i. e., 000 omitted.]
Week ending—
Nov. 23, Nov. 30,
1917.
1917.

Dec. 7,
1917.

Total correspondTotal since ing
period
Dec. 14, Jan. 1,1917. during
1917.
1916.

IMPORTS.

Ore and base bullion
..... ...
United States mint or assav office bars
Bullion refined
. .
United States coin
Foreign coin
Total

355

295

397

196

391
9

119
125

306
80
7

421
1

15,231
114
392,283
53,907
90,882

12,509
4,460
438,512
3,122
149,661

755

539

790

618

552,417

608,264

25

15

3,157
316

716
898

3
522

11
321

250
46,594
42,787
271,629

271
16,768
7,631
103,803

3,473

1,639

540

332

361,260

128,473

is

19

31
7,220

1,458
19,876

.

.'
EXPORTS.

Domestic:
United States mint or assay office bars
Bullion refined
Coin
Total
Foreign:
Bullion refined
Coin

. .

.

. .

110
110

Total
Total exports

1,639

3,583

15

19

555

35l~

7,251

21,334

368,511

149,807

Excess of gold imports over exports since Jan. 1,1917, 8183,906; excess of gold imports over exports since Aug. 1,1914, §1,052,668.

DISCOUNT RATES.
Discount rates of each Federal Reserve Bank approved by the Federal Reserve Board up to Dec. SI, 1917.
Maturities.
Trade acceptances.

Discounts.

Federal Reserve Bank.

Boston
New York 1
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.

Within 15
days,
including
member
banks'
collateral
notes.

16 to 60
days.

I1 Agricultural and
61 to 90 | live-stock
| paper
days.
over 90
days.

Secured by U. S. certificates of indebtedness or Liberty Loan
bonds.
Within 15
days, including
member
banks'
collateral
notes.

Ito60
days,
inclusive.

61 to 90
days,
inclusive.

16 to 90
days.

5

31
44 !

3!

*Rate of 3 to 4£ per cent for 1-day discounts in connection with the loan operations of the Government.
Note 1.—Rate for acceptances purchased in open market, 3 to 4£ per cent, except for Boston, Chicago, and Minneapolis, whose rates range
from 3 to 5 per cent.
Note 2.—In case the 60-day trade acceptance rate is higher than the 15-day discount rate trade acceptances maturing within 15 days will be
taken at the lower rate.




67

FEDEBAL RESERVE BULLETIN.

JANUABY 1,1918.

FOREIGN EXCHANGE RATES.
Monthly ranges of exchange rates on leading foreign money centers, quoted in New York City during the 6 months ending
December, 1917.
Iln continuation of figures published in the July, 1917, Bulletin.]
July.
Low.

August.

High.

Low.

High.

October.

September.
Low.

High.

Low.

High.

November.
Low.

December.

High.

Low.

High.

i
London:
80-day bankers* bills.. .dolls. for £ 1 . . 4.715
4.7175!! 4.715 4.7175 4.7125 4.7175 4.71125 4.7125 4.7125 4.7125 4.7125 4.7125
Sight drafts
.
do
4.75375 4.7565 4.755K 4.7555 4.7530 4.7555 4.7515 4.7530 4.75125 4.7520 4.7515 4.7RQR
'573
576.625 573.50 574
Paris
francs for 100 dolls 579.25 573
578.50 576.375 579.875 576.875 579.50 571
Berlin
dolls, for 400 marks
13.50
18
Petrograd
dolls, for 100 rubles.. 21.10
13.50
15.75 12
23.90 17.75 21.65 14.50
13.50 12.75
Vienna
dolls, for 100 kronen..
794
772
898
846
799
752.50 799
718
75i
723.50 78i
Milan
lire for 100 dolls 726
45.25 43.50
44.50
Amsterdam
dolls, for 100 florins.. 41.125 41.4667 41.50 42.375 41.875 42.125 42.125 45.75 43
45.50 33
42
36.34
37.25
33.10
32.75 33.85 33.45 34.40
Stockholm
dolls, for 100 kroner.. 30.30
34.90
38.75 31.50
33.75
29.50 29.75 30.40 30.20 31.15 31.125 35.75 32.50
Copenhagen
dolls, for 100 kroner.. 28.95
434
440
450
437.50 427
481
450
452
437
438
Zurich
francs for 100 dolls 480
47147.01 45.59
44.21 44.66
47.65
43.97
42.91 43.25 42.76 43.23
42.85
Buenos Aires, .dolls, for 100 paper pesos.. 43.19
26.25 25.90
25.64
25.22
26.90
24.71 25.22
26.82 24.78 25.64
25.15
Rio de Janeiro. dolls.f or 100 paper milreis.. 24.68
28.63 28.03
29.93 25.28
28.27
24.60
24.65 24.78 26.78 30.02 26.78
Valparaiso*
dolls. for 100 pesos.. 24.35
52.125 50.65
52
51.25
51.80
50.90
51.375 50.50
51.25 50.875 51
Yokohama
dolls, for 100 yen.. 51
80
80
69.50
71
74.50
82
64.75 63.50
76.25 73
62.50
Hongkong
dolls, for $100 Mex.. 60.50
105
106
89
101
110
106
120
95.875 93.50 117
91.50
Shanghai....dolls, for 100 Shangh. taels.. 91.50

London prices of silver at nominal rate of $4.8665 per £ sterling.
Month.

January
February
March
April
May
June
July




Low.

High.

1917.

I Average.
I

Month.

Low.

High.

87.959
100.837
91.795
93.713
92.617

100.837
120.566
105.770
99.467
95.357

94.409
111.965
97.170
95.557
94.329

1 78.231

120.566

89.525

Average.

1917.
78.916
81.793
78.231
80.149
82.752
83.300
86.589

82.067
84.260
81.793
83.163
83.574
87.411
90.425

80.412 | August
82.721 September.
79.844 October
81.102 November..
83.163 December..
85.712
87.913
Year 1917

i Chilean rates on New York.

INDEX.
Page.

Acceptances:
Acceptance liabilities of American banking
institutions
11
Banks granted authority to accept up to 100
per cent of capital and surplus
13
Distribution of
54
Assets and liabilities of New York clearing-house
banks
28
Attorney General, opinion by, on power of Federal
Reserve Board to grant fiduciary powers to national banks in New York
12
Branch banks:
Directors of, appointed
14
New branches and offices
10
Business conditions throughout the Federal Reserve
districts
35-51
Chart showing principal assets and liabilities of
New York clearing-house banks
28
Charters issued to national banks during month
15
Commercial failures reported
16
Commissioner of Internal Revenue, ruling of, regarding tax on parcel-post packages sent out by
Federal Reserve Banks
12
Directors of Federal Reserve Banks, election of.. 5,13-14
Classes A and B
14
Class C
13
Branch bank directors
14
Discount operations of Federal Reserve Banks
52-57
Discount rates
7, 66
Dividends declared by Federal Reserve Banks
5
Earnings of Federal Reserve Banks
5
Surplus earnings turned into Treasury
6
Earnings on investments of Federal Reserve Banks
during the month
65
Expenses of the Federal Reserve Board, assessment
for
24
Federal Reserve Agents' fund, transactions under. .
27
Federal Reserve Banks:
Earnings on investments of
65
Resources and liabilities of
58
Federal Reserve Board, assessment for expenses of.
24
Federal Reserve clearing system, operation of
27




Federal Reserve note account of Federal Reserve
Banks and agents
60
Fiduciary powers:
List of banks granted, during month
15
Opinion of Attorney General on power of Board
to grant, in New York
12
Foreign exchange rates
67
Foreign exchange regulations
11
Gold imports and exports
66
Gold settlement fund, transactions under
26
Informal rulings of the Board:
Trade acceptances
30
Eligibility of perishable food products
30
Loans on city real estate
30
Warehouse receipts
31
Revenue stamps on time drafts
31
Election of branch directors
31
Kent, F. I., designated as foreign exchange adviser.
11
Law department:
Drafts drawn to finance sales to U. S. Government
32
Sales corporations
33
Farm loan bonds
33
Section 5200
34
Liberty bond coupons, statement of Secretary of
the Treasury regarding charges for cashing
13
Member banks, statement showing condition of, in
83 cities
61-64
National banks:
Charters granted to, during month
15
Fiduciary powers granted to
15
Resources of, as shown by Comptroller's call...
17
Paper currency outstanding
18
Resources and liabilities of Federal Reserve Banks.
58
Secretary of the Treasury, annual report of, extracts
from
18-24
State banks admitted to system during the month..
16
Tax on parcel-post packages, Federal Reserve Banks
12
subject to
4
Treasury certificates of indebtedness, issue of
United States bonds, amount held as security for
15
circulating notes of national banks

o