Full text of Federal Reserve Bulletin : January 1928
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FEDERAL RESERVE
BULLETIN
JANUARY, 1928
ISSUED BY THE
FEDERAL RESERVE BOARD
AT WASHINGTON
Business Record of 1927
Return of Italy to Gold Basis
Foreign Exchange Rates, 1919-1927
Condition of all Banks in the United States
UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON
1928
FEDERAL RESERVE BOARD
Ex officio members:
ROT A. YOUNG, Governor.
EDMUND PLATT, Vice Governor.
A. W. MELLON,
ADOLPH C.
CHARLES S.
GEORGE R.
EDWARD H.
Secretary of the Treasury, Chairman.
J. W. MCINTOSH,
Comptroller of the Currency.
MILLER.
HAMLIN.
JAMEB.
CUNNINGHAM.
WALTER L. EDDY, Secretary.
WALTER WYATT, General Counsel.
J. C. NOELL, Assistant Secretary.
E. M. MCCLELLAND, Assistant Secretary.
W. M. IMLAT, Fiscal Agent.
E. A. GOLDENWEISER, Director, Division of Research
and Statistics.
CARL E. PARRY, Assistant Director, Division of Re*
search and Statistics.
E. L. SMEAD, Chief, Division of Bank Operations.
J. F . HERSON,
Chief, Division of Examination, and Chief Federal
Reserve Examiner.
FEDERAL ADVISORY COUNCIL
District No. 1 (BOSTON)
District No. 2 ( N E W YORK)
»
ARTHUR M. HEARD.
JAMES S. ALEXANDER.
District No. 3 (PHILADELPHIA)
L. L. R U E .
District No. 4 (CLEVELAND)
HARRIS CREECH.
District No. 5 (RICHMOND)
_
District No. 6 (ATLANTA)
P. D. HOUSTON.
District No. 7 (CHICAGO)
District
District
District
District
District
II
No.
No.
No.
NO.
No.
8 (ST. LOUIS)
9 (MINNEAPOLIS)
10 (KANSAS CITY)
11 (DALLAS)
12 (SAN FRANCISCO)
JOHN F. BRUTON, Vice President,
__ FRANK O. WETMORE,
_
BRECKINRIDGE JONES.
THEODORE WOLD.
P. W. GOEBEL.
B. A. M C K I N N E Y .
HENRY S. M C K E E .
President.
OFFICERS OF FEDERAL RESERVE BANES
Governor
Chairman
Federal Reserve Bank o—
f
Boston
New York
Frederic H. Curtiss
Q. W. McGarrah
Philadelphia
R. L. Austin
Geo. W. Norris
Cleveland
George DeCamp
E. R. Fancher
Richmond
Wm. W. Hoxton
George J. Seay
Atlanta
Oscar Newton
Eugene R. Black
Chicago
Wm. A. Heath
J. B. McDougal
St. Louis
Minneapolis
Wm. McC. Martin
John R. Mitchell
D. C. Biggs
W. B. Geery
Kansas City
Dallas
M. L. McClure
C.C.Walsh
W. J. Bailey
Lynn P. Talley
San Francisco
Isaac B. Newton
J. U. Calkins
W. P. G. Harding.
Benj. Strong
Deputy governor
W. W. Paddock
J. H. Case
L . F . Sailer
G. L. Harrison
E. R. Kenzel
Wm. H. Hutt
M. J. Fleming
Frank J. Zurlinden
C. A Peple
R. H. Broaddus
Hugh Foster
Creed Taylor
C. R. McKay
John H. Blair
0. M. Attebery
B. V. Moore
Harry Yaeger
C. A. Worthington
R. R. Gilbert
R. B. Coleman
Wm. A. Day
Ira Clerk
L. C. Pontious
Cashier
W. Willett.
A. W. Gilbart.1
J. W. Jones.i
Ray M. Gidney.i.
L. R. Rounds.»
C. A. McDhenny.
W. G. McCreedy.i
H. F. Strater.
Geo. H. Keesee.
JohnS. Walden, Jr.»
M. W. Bell.
W. C. Bach man. i
K. C. Childs.i
J. H. Dillard.i
D. A. Jones.i
0. J. Netterstrom.i
0 . M. Attebery.
Gray Warren.
Frank C. Dunlop.1
J. W. Helm.
Fred Harris.
_ W. N. Ambrose
» Controller.
MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS
Federal Reserve Bank o—
f
New York:
Buffalo branch
Cleveland:
Cincinnati branch
Pittsburgh branch
RichmondBaltimore branch
Charlotte branch
_
Atlanta:
New Orleans branch.
J ackson ville branch
Birmingham branch
Nashville branch
Chicago:
Detroit branch
St. Louis:
Louisville branch
Memphis branch
Little Rock branch
Managing director
W. W. Schneckenburger.
C. F. McCombs.
J. C. Nevin.
A. H. Dudley.
_. Hugh Leach.
Marcus Walker.
Geo. R. DeSaussure.
A. E. Walker.
J. B. Fort, Jr.
W. R. Cation.
W. P. Kincheloe.
W. H. Glasgow.
A. F. Bailey.
Federal Reserve Bank o—
f
Minneapolis:
Helena branch..
Kansas City:
Omaha branch
Denver branch
Oklahoma City branch
Dallas:
El Paso branch
Houston branch
San Antonio branch
San Francisco:
Los Angeles branch
Portland branch
Salt Lake City branch.
Seattle branch
Spokane branch
Managing director
R. E. Towle.
L.H. Ear hart.
J. E.Olson.
C. E. Daniel
W. 0 . Ford.
D. P. Reordan
M. Crump.
Wm. M. Hale.
_ R. B. West.
W. L. Partner.
C. R. Shaw.
D. L. Davis.
SUBSCRIPTION PRICE OF BULLETIN
THE FEDERAL RESERVE BULLETIN is the board's medium of communication
with member banks of the Federal reserve system and is the only official organ
or periodical publication of the board. The BULLETIN will be sent to all member
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in
|
|
TABLE OF CONTENTS
Page
Review of the month—Business record of 1927
Return of Italy to gold basis
Report x>f Agent General for Reparation Payments
Election of directors of Federal reserve banks
New edition of board's regulations
Revised figures of condition of reporting member banks
Condition of all banks in the United States
Foreign exchange rates, 1919-1927
Changes in membership in Federal reserve system
Treasury finance
National summary of business conditions
Financial, industrial, and commercial statistics:
Reserve bank credit—
Reserve bank credit in use
Discounts and deposits of Federal reserve banks
Monetary gold stock and money in circulation
Money rates in New York City
Federal reserve bank rates
Open-market rates
Rates charged customers by banks in principal cities
Member bank credit—
Member bank reserve balances and borrowings at Federal reserve banks
Loans, investments, and deposits of reporting member banks
Bankers' balances in Federal reserve bank and branch cities
Commodity prices, security prices, and security issues
Industrial production
Factory employment and pay rolls
Building
Commodity movements
Wholesale trade
Retail trade
Bank suspensions and commercial failures
December crop report
Financial statistics for foreign countries:
Condition of central banks
Condition of commercial banks
Discount rates of 33 central banks
Money rates in foreign countries
Gold exports and imports of principal countries
Foreign exchange rates
Price movements in principal countries—
Wholesale prices
Retail food prices and cost of living
1
27
28
7
7, 63
8
9, 103
9, 56
9
10
11
13
13
14
15
15
15
16
17
17
18
19
20
21
22
23
23
24
25
26
47
49
49
50
51
52
53
55
Law department—Regulations of the Federal Reserve Board, series of 1928
Changes in national and State bank membership
Fiduciary powers granted to national banks
63
88
88
Detailed banking statistics for the United States
89
IV
FEDERAL RESERVE BULLETIN
VOL.
14
JANUARY, 1928
REVIEW OF THE MONTH
Industrial and trade activity in the United
States showed a further decline in the last
weeks of 1927, when allowance
Business i n is made for the usual seasonal
1927
trend, and at end of the year
production and wholesale trade were in smaller
volume than at the close of any year since 1924.
Notwithstanding the recession in business in
recent months, however, the volume of activity
for the year as a whole was nearly as large as
the record established in 1926 and larger than
in any previous year. The output of mines
and factories and the volume of building construction were somewhat smaller than the year
before, though larger than in preceding years.
Factory employment showed a slight decline for
the year and earnings of industrial workers
were somewhat reduced, while the value of
farm products was larger than in 1926. Distribution of commodities to consumers was
maintained on a high level and there was no
evidence of undue accumulation of inventories. The general level of commodity prices,
which had been declining for about two years,
turned upward in the early summer of 1927
and at the close of the year was only about 1
per cent lower than at the end of 1926.
Throughout the year bank credit was ample
for all classes of enterprise, and money rates
were relatively low, particularly after midsummer and early autumn when discount
rates at the reserve banks were reduced from
4 to 33^2 per cent. The supply of capital funds
arising from national savings was exceptionally- large and flotations of domestic and
foreign securities were in record volume.
This record for 1927 as a whole and for the
entire United States is the resultant of different developments at differIndustrial acent times of the year and in
tivity
the various parts of the country. Industry at the beginning of the year
No. 1
showed increasing activity following upon a
recession in the preceding three months. In
the first quarter of the year the output of
minerals exceeded all previous records, reflecting the large production of bituminous
coal, stimulated by the threatened strike.
Output of manufactures increased during this
period and in the spring months was larger
than for the corresponding period of any previous year. With the beginning of the coal
strike on April 1, however, mineral production
was sharply reduced and later in the spring
manufacturers also began to reduce operations.
90
80
Jan.
Feb. Mar. Apr. May June July Au$. Sept. Oct.
Nov. Dec.
Except for minor fluctuations, industrial production declined steadily for the remainder of
the year, falling in July below the level of 1926
and after October below that of 1925. The
accompanying chart shows fluctuations in the
daily average volume of industrial production
for corresponding months of the past three
years, as indicated by the board's index. This
index includes both manufactures and minerals, and, as given on this chart, is not adjusted for seasonal variations. A chart appearing on page 11 of this issue shows that, when
allowance is made for customary seasonal
movements, the production of manufactures in
November, the latest month for which com1
FEDERAL RESERVE BULLETIN
plete figures are available, was smaller than in
any month since November, 1924.
Increase in manufacturing activity during
the early months of the year from the low point
reached in December, 1926, was
Developments
j h
h
f ^
by industries
&
.
.&_
industries. Although increases
at that time were especially large in iron and
steel, automobiles, and rubber tires, the higher
level of production in the spring as compared
with the corresponding period of 1926 reflected
chiefly the output in the textile and leather
industries. Cotton and silk consumption was
larger in 1927 than in any previous year, and
the wool and leather industries, recovering
somewhat from the depression of recent years,
were more active than for any year since 1923.
In October and November these industries
showed some decline in output along with
other industries but continued somewhat more
active than a year earlier. The largest part of
the decrease during the last half of the year
occurred in the two industries showing the
greater increases in the earlier months—iron
and steel and automobiles. Production of
automobiles, estimated on the basis of figures
for 11 months, was smaller in 1927 than in
any earlier year since 1922, and the output in
November was smaller than in any month since
February, 1922. Much of this decline was due
to suspension of production in the Ford plants
during most of the last half of the year while
preparations were under way for the manufacture of the new model. Curtailment of automobile production was a factor in the decline of
activity in the iron and steel industry, in which
output wras in the smallest volume since 1924.
In addition to those recorded for the automobile and iron and steel industries, there were
decreases in production during the last half of
the year also in nonferrous metals, building
materials, rubber tires, and food products, and
all industries except textiles, leather, petroleum
refining, and tobacco manufactures were less
active toward the end of 1927 than a year
earlier.
Bituminous coal production was curtailed
partly as a result of the miners' strike in
JANUARY, 1928
union fields and partly in consequence of
the large stocks accumulated at the beginning
of the year. Although these stocks were reduced somewhat in the autumn, they continued relatively large throughout 1927. Prices
for both anthracite and bituminous coal declined during the year. Crude petroleum also
was in excess supply owing to large production
from new w^ells, which began in the latter part
of 1926 and continued until late in 1927 when
there was some curtailment in output. Although consumption of petroleum was the
largest on record, stocks were accumulated,
and prices fell to the lowest level for the postwar period. Production of nonferrous metals
was reduced during the year and totaled somewhat less than in 1926. The smaller production of copper strengthened the market considerably, and in recent weeks the price of
copper has advanced.
Building construction continued in large
volume during 1927, and the total value of
building contracts awarded for
ill ing con- ^ country as a whole during
struction
.
,
the year was estimated by the
F. W. Dodge Corporation as $6,800,000,000,
about $100,000,000 below 1926 but above any
other - year. There were decreases of over
$100,000,000 in contracts for residential buildings and of nearly $200,000,000 in those for
industrial buildings, while awards for public
works and public utilities increased by nearly
$150,000,000, and there were also increases in
institutional, public, religious, and recreational
buildings. Considered by sections of the
country, there was a large expansion of contract awards in the Middle Western States and
small increases in the Middle Atlantic States,
while the other areas showed decreases, the
largest decline being in the Southeast. The
continuation of a high level of building activity
during the past year has meant a further large
demand for building materials and sustained
employment of labor, although decreases in
residential building and increases in construction of public works and public utilities resulted in some shifts in the types of materials
and labor employed.
JANUARY,
1928
FEDERAL RESERVE BULLETIN
These figures indicate somewhat smaller reAgricultural developments during the year
were in contrast to the course of industry. turns from crops this year than in 1924 or
Agricultural prospects, which at 1925, but income from cattle and dairy prodAgricultural & b &i n n i n & f 1 9 2 7 w e r e n o t ucts was larger than in those years. Furtherdevelopments
.
.
as bright as the industrial out- more, farmers have succeeded in recent years
look, improved considerably in the latter part in reducing somewhat their costs of production,
of the year. At the opening of the year the so that increase in net returns has been relabuying power of agricultural communities had tively greater than increase in the total value
been reduced by relatively small returns from of their products.
As between different sections of the country,
1926 crops, and, in addition, in the first half of
agricultural conditions were far from uniform.
1927 cotton prices were low, there was a sharp
In the cotton region the prinbreak in hog prices, and a serious delay in the
eograp ica
. ^
smaller in volprogress of the corn crop; also in this half year lfferences
i
i
i
i
occurred the disastrous flood in the Mississppi
ume but larger m value than
Valley. Late in the spring prices of agricul- in 1926. Winter-wheat production was smaller
tural commodities began to rise, reflecting than in 1926, owing to decreases in yield in the
chiefly increases in the price of cotton, corn, Southwestern and East North Central States,
and cattle. Subsequently, prices of other while the spring wheat crop in the Northwest
products also advanced, and the Department showed an increase in output of about 50 per
of Agriculture's index of farm commodity cent. Although the corn crop was slightly
prices, which was in April at the lowest point larger than in 1926, the increases were confined
since 1922, rose by about 11 per cent during to the Western States, while in the eastern part
the next five months. Since wholesale prices of the Corn Beit production decreased, and
of nonagricultural commodities showed little there was also a decline in the returns from
change during this period, the purchasing power hog production. Feeding of hogs was enof agricultural products increased. Thus dur- couraged last year by low corn prices, and when
ing the period from September to November, the price of corn rose last spring, large sup1927, farm prices averaged about 6 per cent plies of hogs were offered for sale and prices
higher than in the same period of 1926, while declined sharply. The Western and Northwholesale prices of nonagricultural products in- western States, on the other hand, profited in
cluded in the index of the Bureau of Labor 1927 by higher prices for cattle and dairy
Statistics showed a decline of about 6 per cent products. The cattle market recovered during
for the corresponding period.
the past year irom the depression consequent
Unusually favorable weather in the autumn upon the general liquidation which has been
permitted the harvesting of larger crops than in process ior several years, cattle prices rising
had been expected earlier in the season, and, to the highest levels since 1920. This improvealthough yields were nevertheless generally ment has been aided by a similar recovery in
smaller than last year, the total value of about the hide and leather markets. Production of
50 crops at prices prevailing on December 1 was dairy products increased in the last half of
estimated to be about $635,000,000 larger than 1927, and with prices at a higher level, their
in 1926. The estimated aggregate farm value value exceeded that for 1926.
of these crops on December 1 for the past four
Changes in the volume of production during
years was as follows:
the year were reflected in changes in the deDistribution of mand for transportation. In
i Value of 50 farm
Year
I
crops
the first few months, when the
commodities
tonnage of coal mined was the
1924
; $9,364,600,000
largest on record, and later when manufactur1925._
i 8,948,730,000
1926-_
| 7,793,480,000
1927.
! 8,426,626,000 ing operations were at a high level, freight-car
loadings exceeded those of the corresponding
FEDERAL RESERVE BULLETIN
period of any previous year. Later in the year,
when mining and manufacturing activity declined, car loadings also showed a decline when
compared with previous years. In the autumn
months loadings of grains exceeded those of the
same period in 1926, reflecting the influence of
this year's larger spring wheat crop, but loadings of all other classes of commodities were
smaller than a year earlier. During November
and December total car loadings were below
those of the same months of any year since
1922, and, when allowance is made for the
usual seasonal changes, the movement of
miscellaneous commodities and of merchandise
in less-than-car-load lots was the smallest since
1924.
volume than in 1926. Sales of wholesalers
were relatively small during the spring and
early summer months, but increased considerably in August, owing to unusually cool
weather in that month; in September and October, however, owing to the warmer weather,
the sales fell below the level of 1926 and continued below that level in November. In general, the last part of the year showed smaller
decreases in wholesale trade as compared with
the corresponding period of 1926 than did the
first part of the year, and this was particularly
true for the western and southern districts, in
which crop returns were larger than a year ago.
Department-store sales for the country as a
whole, the course of which is indicated on the
120
WHOLESALE DISTRIBUTION
JANUARY, 1928
DEPARTMENT STORE SALES AND STOCKS
120
Adjusted for Seasonal Variations, 1323-25-100
110
80
Adjusted for Seasonal Variations
Without Seasona/j4<//
I
1923
1924-
1925
70
1926
1927
Federal Reserve Board's index of sales in nine lines of wholesale
trade combined. Average for 1923-1925=100
1923
1924-
1925
1926
J80
1927
Federal Reserve Board's index of sales and stocks of department
stores
Distribution of merchandise at wholesale and chart, averaged about the same for 1927 as for
retail in 1927, although somewhat smaller than 1926. In the first half of the year the volume
in 1926, when all lines are
T r a d e a \ taken into consideration, con- of sales declined, reaching a low point in the
early summer, increased considerably in Au'
wholesale and
tinued in large volume. Sales gust, reflecting the influence of the cool weathretail
of wholesale firms in the nine er, and showed somewhat less than the usual
lines of trade included in the board's new index seasonal expansion in the three subsequent
of wholesale distribution,1 as shown on the months. Early reports indicate that the
chart, were about 4 per cent smaller in 1927 volume of holiday sales in December was somethan in 1926, this decrease reflecting in part what larger than in previous years. For the
the decline in prices. The largest declines in year as a whole, sales in eastern and central
sales as compared with last year were in dry industrial districts, with the exception of Philagoods, hardware, groceries, and meats. Sales delphia, were larger than in 1926, while those
of men's clothing, boots and shoes, and drugs for the southern and western districts were
were in about the same or in slightly larger smaller. Toward the end of the year, however, there was some improvement in the disSee page 23 of this BULLETIN and pp. 817-828 of the BULLETIN for
tricts where crop returns were good.
December, 1927.
1
FEDERAL RESERVE BULLETIN
JANUARY, 1928
During the year the marketing of industrial of the Bureau of Labor Statistics was 94 per
and farm products proceeded smoothly, and cent of the 1926 average, as compared with
there appeared to be little 105 per cent in March, 1925, the postwar high
Stocks of comtendency toward accumulation point. The decline in 1926 was general for
modities
of inventories. Stocks of the all the main groups of commodities except
more than 50 commodities shown in the table fuels, which were affected by unusual circumon page 6 show about an equal number of stances in that year. The sharpest decreases
increases and decreases for the 12 months were in agricultural products, which had shown
ending in November. Supplies of wheat ex- relatively the most rapid rise in 1924 and 1925.
ceed those of last year, owing to the large Prices of most of the n on agricultural commodicrop, and those of dairy products and pork also ties as indicated by indexes for groups and subincreased during the year, but stocks of cotton, groups, however, declined almost steadily from
oats, beef, lard, and eggs are smaller than a 1923 to the early months of 1927, when indexes
year ago. Among the minerals, stocks have for clothing materials and fuels reached new
generally increased somewhat, increases being low points for the postwar period and those for
especially large for coal as a result of reduced metals, building materials, chemicals and drugs,
consumption and for petroleum owing to the and house furnishings were the lowest since
unusually large increase in production. In early in 1922. Farm products and foods, on
textiles, manufacturers' stocks of most of the the other hand, remained above the low points
products for which figures are available have of 1923 and 1924. In the summer months the
increased, while stocks of leather have declined general level of prices began to rise, a result at
to new low levels. Crude-rubber supplies first of increases in the prices of corn, wheat,
have increased, but those of tires and tubes cotton, and hides and later also of advances in
held by manufacturers have declined slightly.
livestock, food products, cotton goods, and
Changes during the past two years in stocks of
leather. Prices of most of the other commodithese industrial commodities show no importies remained relatively stable, while some,
tant sustained increases except in some of the
notably building materials, fuels, and iron
metals, in fuels, and in crude rubber. Stocks
of merchandise carried by wholesale firms were and steel, continued to decline. The all-comsmaller in value in 1927 than in 1926 in most modities index rose from 94 in May to 97 in
lines from which reports are received, while October, and remained near this level for the
department-store stocks continued in about remainder of the year.
Declining prices and curtailed industrial acthe same volume in 1927 as in 1926. Efficient
tivity in the course of the year has had the effect
transportation, which assured prompt delivery
of reducing profits of industrial
of orders, and the absence of rapid price
Industrial
corporations below the high
advances w^ere among the influences against profits
level of 1926. Net profits of 171
the undue accumulation of inventories.
corporations, for which reports are summarized
For the year as a whole the average level of
wholesale commodity prices was lower in 1927 by the Federal Reserve Bank of New York,
than in any year since 1921. were about 5 per cent smaller for the first three
Commodity
quarters of 1927 than for the same period of
T h e d o w n w a r d m o V ement of
prices
wholesale prices, which began 1926, but considerably larger than in the same
late in 1925, continued practically without period of 1925 or 1924. Profits of these corpointerruption through 1926 and the early months rations in the first quarter of 1927 were in
of 1927. The low point of the movement was approximately the same volume as in the
reached in April and May, when the price index first quarter of 1926; in the second quarter
79290—28
2
6
FEDERAL RESERVE BULLETIN
JANUARY, 1928
however, profits were more than 5 per cent REPORTED STOCKS (^[AGRICULTURAL AND INDUSTRIAL
COMMODITIES AT THE E N D OF NOVEMBER
less than in 1926, and the third quarter's
returns showed a decrease compared with last
year of 10 per cent.
Commodity
Volume of member bank credit in use increased rapidly during 1927, the growth being
largely in investments and in
B a n k credit
AGRICULTURAL
loans on securities; there was
and
m o n e y
8,010i
no increase in the demand for Cotton (thousands of bales)
rates
Cottonseed (thousands of tons)_
1,392
78,412
ioans to finance trade and in- Wheat (thousands of bushels) _
Corn (thousands of bushels).._
32,219!
50,063
dustry owing to the smaller volume of busi- Oats (thousands of b u s h e l s ) . . .
Cheese (thousands of p o u n d s ) . .
81,084
ness and the lower level of commodity prices. Apples (thousands of barrels) _ _
10,468|
Butter (thousands of p o u n d s ) .
64, 377
Reserve bank credit outstanding throughout Frozen poultry (thousands of
pounds)
the year was influenced chiefly by the effects of Beef (thousands of pounds)
Pork (thousands of pounds)
international gold movements. In the early Lard (thousands of pounds)
Eggs (thousands
cases)
months of the year large gold imports were Tobacco (millionsofof pounds). _
used by member banks to reduce their indebt- ^
INDUSTRIAL
edness at the reserve banks and the volume of Metals:
Iron ore (thousands of long
tons)
41,472 42,761 41,686 - 0 . 5 - 3 . 0
reserve bank credit declined considerably beCopper, refined (short tons). 90,874 73,856 67,838
low the level of 1926. From May to the end Copper blister (short tons). 250, 071 277,479j 249,064i +34.04 +23.0
+0.
-9.9
of the year, however, gold exported and ear- Zinc, slab, at refineries 39,320 14,481! 6,922+468.0+171.5
(short tons).
Lead,
marked for foreign account far exceeded gold Fuels: crude (short t o n s ) . . . 3155,868 3118,31113104,999; +48.0 + 3 1 . 7
Bituminous coal (thouimports, with the consequence that there was
sands of short tons)
«61,900 43, 000i < 48,000| +29. 0 +44. 0
Petroleum, crude (thouan increased demand for reserve bank credit,
sands of barrels)
3345,357 77,099 296,690 +17. 6; +25.9
Gasoline (millions of galand at the end of the 3rear total bills and securilons)
3 1,241
1,508
1,590 -19.7: - 1 5 . 3
Gas and fuel oil east of
ties of the reserve banks were in larger volume
California (millions of
gallons)
3 1,394
1,037: +23.4 +25.3
1,128
than at any time in the past six years. The Building materials:
Yellow
pine,
southern
growth in the demand for reserve bank credit,
(millions of board feet)..
812
856
929 - 7 . 9
+5.4
Yellow pine, western (milhowever, was'met by the reserve banks largely
1,073
1,102 - 2 . 6
1,143
lions of board feet)
-6.1
Hardwoods (millions of
through the purchase of securities in the open
898
board feet)
788 +12.9 - 0 . 9
3 890
Flooring, oak and maple
market, so that borrowing by the member
(thousands of board feet). 97,059 93, 764 68,276 +42.2 +3.5
Common brick, burned
banks increased less than is usual in the autumn
(thousands).-.
451, 563 279,188 +93.0 +19.3
Paving brick (thousands). 3 66,183 •82,721 3 111,155 - 4 0 . 5 - 2 0 . 0
and early winter months, and was in considCement (thousands of barrels)
15, 971 16,243 14,450 +10. 05 - 1 . 7
erably smaller volume at the end of 1927 than at
Enameled sanitary ware
(thousands of pieces)
695;
620 +12.1 - 1 6 . 2
the same period of the two preceding years.
Textile materials and products:
|
Cotton, raw, at warehouses
(thousands of bales)
5,207 +14. 6 - 8 . 4
5,969*
6,517
As the consequence of the relatively small
Cotton, raw, at mills
(thousands of bales)
1,457 +6.5 +3.9
1,5511 1,493
volume of indebtedness of member banks at the
Cotton fabrics,
finished
(cases)..
41,350* 37,113 40,511 +2.1 +11.4
reserve banks, due largely to security purchases
Wool, raw, manufacturers
!
(thousands of pounds)
by these banks, conditions in the money market
H75,436! 161,943 '182,506 - 3 . 9 +8.3
Wool, raw, dealers (thouremained easy, notwithstanding the large
sands of pounds)
«181,671i«213 770 2190,504 - 4 . 6 -15.0
1 Stocks
case
Nov.
otherwise noted. These
growth of member bank credit and the export figures are in every from are as ofsources30 unless except those referring to
derived
various
and all,
bituminous coal, are published regularly in the Survey of Current
demand for gold, and money rates in the Business of the Department of Commerce. Coal stocks are compiled
second half of the year were considerably be- at irregular intervals by the Bureau of Mines.
2 Stocks as of Sept. 30.
low the levels prevailing at the same season of 3 Stocks as of Oct. 31.
* Stocks are as of report dates Nov. 1, 1925, Oct. 1, 1926, and Oct. 1,
1926 and 1925.
1927.
l
;
:
2
!
>
FEDERAL RESERVE BULLETIN
JANUARY, 1928
REPORTED STOCKS OF AGRICULTURAL AND INDUSTRIAL
COMMODITIES AT THE END OF NOVEMBER—Continued
Commodities
1927
:
1926
1925
Per cent of
change in
1927 over—
1925
Textile materials and products—Continued.
Silk, raw, at warehouses
(bales)
Hosiery (thousands of dozen pairs)
Knit underwear, (thousands of dozen garments).
Leather:
Sole leather (thousands of
backs, bends, and sides).
Upper leather, cattle (thousand of sides)
Upper leather, calf and kip
(thousands of skins)
Upper leather, goat and
kid (thousands of skins)
Rubber:
Rubber, crude (long tons).
Pneumatic tires
Inner tubes
Wood pulp and paper:
W o o d p u l p , chemical
(short tons)
Wood pulp, mechanical
(short tons)
Newsprint (short tons)
Book paper (short tons)
Wrapping paper (short
tons)
Fine paper (short tons)
Paperboard (short tons)....
as experience had proven to be necessary or
desirable. The full text of the new regulations
and a brief introductory statement calling
attention to the more important changes are
published in this issue of the BULLETIN, beginning on page 63.
1926
ELECTION OF DIRECTORS
52, 009
3 7,959
47,130
46,813
+11.2 +10.5
3
3 5,476
+45.3 +16.3
1,073
6,843
1,011
95'
+12.1 +6.1
3
4,312
3 6,87
-56. 9 1-31.2
3 2, 81'
3
3,644
3 3,912
-28.0 -22.7
3 5,264
3
5,964|
3 6,308
-16.6 -11.7
3 2,965J
3
17, 521 3 19,3521 3 18,360
2 90,801 -'58,883 2 33,131
s 7, 660
7, 798
5,216
«10,296 12,453|
7,119
39,310
43, 638
38,888
141.163 200,932 194,346
28,543 13, 592 17,418
55,212 43,0481 45,026
46,871
40,138
41,976
38,444i
42, 367
52,014;
46,191
40,207
29,867
-4.6
-9.5
+174.2 +54.3
+46.9 - 1 . 8
+44. 6 -17.3
+1.1!
-9.9
-27.4! -29.7
+63.91+110.0
+22.6| +28.3
+1.5 ! +21.9
-0.2 -5.3
+40.5 j -19.3
The following directors of Federal reserve
banks have been elected for the three-year
term beginning January 1, 1928:
CLASS A DIRECTORS
Boston—EdwardS. Kennard, Rumford, Me. (reelected).
New York—Delmer Runkle, Hoosick Falls, N. Y.
(reelected).
Philadelphia—George W. Reily, Harrisburg, Pa.
Cleveland—O. N. Sams, Hillsboro, Ohio (reelected).
Richmond—Chas. E. Rieman, Baltimore, Md. (reelected) .
Atlanta—H. Lane Young, Atlanta, Ga.
Chicago—George B. Reynolds, Chicago, 111. (reelected).
St. Louis—Max B. Nahm, Bowling Green, Ky.
Minneapolis—Karl J. Farup, Park River, *N. Dak.
Kansas City—C. C. Parks, Denver, Colo, (reelected).
Dallas—J. H. Frost, San Antonio, Tex. (reelected).
San Francisco—Howard Whipple, Turlock, Calif,
(reelected).
CLASS B DIRECTORS
2
Stocks as of Sept. 30.
3 Stocks as of Oct. 31.
^Preliminary.
CHANGE IN GOVERNORSHIP OF ATLANTA
BANK
Gov. M. B. Wellborn, of the Federal Reserve
Bank of Atlanta, resigned effective December
31, 1927, and the directors of the Atlanta bank
have appointed Eugene R. Black as Mr. Wellborn's successor. Mr. Black has served as
class A director of the Atlanta bank since January 1, 1925.
NEW EDITION OF BOARD'S REGULATIONS
Boston—Charles G. Washburn, Worcester, Mass.
(reelected).
New York—Samuel W. Reyburn, New York, N. Y.
(reelected).
Philadelphia—Arthur C. Dorrance, Camden, N. J.
Cleveland—S. P. Bush, Columbus, Ohio.
Richmond—Edmund Strudwick, Richmond, Va. (reelected) .
Atlanta—-J. A. McCrary, Decatur, Ga. (reelected).
Chicago—August H. Vogel, Milwaukee, Wis. (reelected).
St. Louis—Rolla Wells, St. Louis, Mo. (reelected).
Minneapolis—John S. Owen, Eau Claire, Wis. (reelected) .
Kansas City—Thos. C. Byrne, Omaha, Nebr. (reelected) .
Dallas—J. R. Milam, Waco, Tex.
San Francisco—William T. Sesnon, San Francisco,
Calif, (reelected).
Under date of December 22, the Federal Reserve Board issued a revised edition of its regAPPOINTMENT OF CLASS C DIRECTORS
ulations, to become effective January 3, 1928,
The following class C directors have been
and to be known as " Regulations of the Federal
Reserve Board, Series of 1928." The primary appointed for the three-year term beginning
purpose of this revision is to bring the regu- January 1, 1928:
lations into conformity with the provisions of Boston—Allen Hollis, Concord, N. H. (reappointed).
the Federal reserve act as amended by the New York—Clarence M. Woolley, New York, N. Y.
(reappointed).
McFadden Act of February 25, 1927. The
board took this occasion to review all of its Philadelphia—Alba B. Johnson, Philadelphia, Pa. (reCleveland—William W. Knight, Toledo, Ohio
existing regulations and to make such changes
appointed) .
8
FEDERAL RESERVE BULLETIN
Richmond—Frederic A. Delano, Washington, D. C.
(reappointed).
Atlanta—George S. Harris, Atlanta, Ga.
Chicago—W. A. Heath, Chicago, 111. (reappointed).
St. Louis—William McC. Martin, St. Louis, Mo. (reappointed) .
Minneapolis—Homer P. Clark, St. Paul, Minn, (reappointed) .
Kansas City—E. M. Brass, Grand Island, Nebr.
Dallas—S. B. Perkins, Dallas, Tex. (reappointed).
San Francisco—Walton N. Moore, San Francisco,
Calif, (reappointed).
APPOINTMENT OF CHAIRMEN AND DEPUTY
CHAIRMEN
The following have been designated as Federal reserve agents and chairmen of the board
of directors of the Federal reserve banks for
terms of one year, expiring December 31, 1928:
Boston—Frederic H. Curtiss.
New York—Gates W. McGarrah.
Philadelphia—Richard L. Austin.
Cleveland—George DeCamp.
Richmond—William W. Hoxton.
Atlanta—Oscar Newton.
Chicago—W. A. Heath.
St. Louis—William McC. Martin.
Minneapolis—John R. Mitchell.
Kansas City—M. L. McClure.
Dallas—C. C. Walsh.
San Francisco—Isaac B. Newton.
The following have been designated as
deputy chairmen of the Federal reserve banks
for terms of one year, expiring December 31,
1928:
Boston—Allen Hollis.
New York—Owen D. Young.
Philadelphia—Alba B. Johnson.
Cleveland—Lewis B. Williams.
Richmond—Frederic A. Delano.
Atlanta—W. H. Kettig.
Chicago—James Simpson.
St. Louis—John W. Boehne.
Minneapolis—Homer P. Clark.
Kansas City—W. L. Petriken.
Dallas—Clarence E. Linz.
San Francisco—Walton N. Moore.
REVISED FIGURES OF CONDITION OF
REPORTING MEMBER BANKS
The board's weekly statements of condition
of reporting member banks in leading cities,
which for more than nine years have been
given to the press currently and published
regularly in the FEDERAL RESERVE BULLETIN,
have been made up as far as possible on a
strictly comparable basis, from month to month
and from year to year. The number of banks
included has declined from about 800 in 1919
JANUARY,
1928
to about 650 in 1927, but this decline has not
appreciably impaired the comparability of the
figures, because it has reflected for the most
part the consolidation of banks that had
previously been reporting separately. When a
reporting member bank has withdrawn from
the system, as has happened at infrequent
intervals, it has generally been possible to
substitute for it therafter another member
bank of corresponding size in the same city
not previously on the reporting list. In
general, however, changes in the reporting
list have not been of importance, and the
figures may be considered as relating in effect
to an identical group of banks.
A recent change, however, arising from the
consolidation on December 1, 1927, of a large
nonmember bank at Chicago with a reporting
member bank, occasioned an increase in the
total loans and investments of the reporting
member banks in that city—and consequently
in the corresponding national total for all
reporting member banks—of about $123,000,000; smaller changes were occasioned in
the totals for other items shown on the condition statement. In order to enable the
board to provide back figures comparable with
the new totals the incoming bank has furnished
weekly condition statements for all dates back
to December 8, 1926, and by using these
figures the board has been able to show in each
of its weekly statements, beginning with that
for December 7, 1927, revised figures for the
preceding week and the corresponding week
a year ago. In this issue of the BULLETIN,
furthermore, all of the regular retrospective
tables affected by the revision (those showing
monthly averages of weekly figures, pages
17-18) have been put on the new basis for the
period December, 1926-December, 1927. At
the same time one other revision covering the
year 1927 has been made, affecting the figures
shown for the different classes of loans in
New York City and the corresponding national
totals. This revision, which was made necessary by revised reports from two banks in
New York City, has had the effect of transferring from the class of "all other loans" to
"loans on securities" of an amount aggregating about $80,000,000 in January and
smaller amounts down to about $30,000,000
in subsequent months. The weekly figures
for December shown on pages 96-99 are all
on the new basis, and back figures, by weeks,
on this basis will appear in the board's next
annual report and can be had upon request.
JANUARY,
1928
FEDERAL RESERVE BULLETIN
of exchange for the entire period for which
they have been computed, both by months
At the beginning of October, 1927, according and years; in most cases the period covered is
to figures which have recently become avail- from November, 1918, to December, 1927.
able, all banks in the United States, including
both members of the Federal reserve system
and nonmembers, had loans and investments CHANGES IN MEMBERSHIP IN THE FEDERAL
RESERVE SYSTEM
aggregating about $54,650,000,000—about
During the third quarter of the year the
$720,000,000 more than at the end of the first
half of the year, as shown by the table, which number of national bank members of the
gives separate figures for member and non- Federal reserve system increased by 8 and the
number of State bank members decreased by
member banks.
20, making a net decline of 12 in the number
LOANS AND INVESTMENTS OF ALL BANKS IN THE of member banks in active operation as indiUNITED STATES
cated by the number of banks submitting
[In millions of dollars]
required reports of condition on June 30 and
October 10, 1927. The decrease in the number
NonAll banks Member j member
banks
of member banks was the net result of 57 losses
banks
to membership, for the most part the result of
!
October 10, 1927:
Loans
37,616 j 23,492
14,124 suspensions and mergers between member
Investments
17,036 i
9,959
7,077 banks, and 45 additions.
Changes in the
Total
54,652 | 33,451
21,201 status of banks which affected membership in
the system are summarized for the period in
Change from June 30, 1927:
i1
Loans
+485 :j
+343
+142 the following table:
Investments.
+233 |;
+141
+92
CONDITION OF ALL BANKS IN THE UNITED
STATES
Total
+71S !;
+484
+234
CHANGES IN MEMBERSHIP IN THE FEDERAL RESERVE
SYSTEM, JULY 1, 1927, TO OCTOBER 10, 1927
The increase for the third quarter of the
year, which reflected a growth both of loans
Number
Class of change
of banks
and of investments, was only about two-thirds
as large as that of the second quarter but some9,099
what larger than for the first quarter of the Active member banks, July 1, 1927
Banks joining the system
45
year.
120
withdrawing from the
Figures showing the principal resources and BanksNet increase from bankssystem__and withdrawing _.
joining
25
liabilities of all banks on October 10, 1927, are Decrease in membership through mergers between member
37
given in detail elsewhere in this issue of the banks, suspensions, and voluntary liquidation
BULLETIN, by Federal districts and by States,
Net decrease for the period
-12
with comparative figures for preceding call Active member banks, October 10, 1927
9,087
dates. These figures, as compiled by the
Federal Reserve Board, are now available for 1 Includes 7 withdrawals which were incidental to the absorption o£
every call date since June 30, 1923. Back member banks by existing nonmember banks.
figures are given in Table 72 of the board's
As against 45 banks that joined the system
annual report for 1926.
there were 20 that withdrew from membership, resulting in a net voluntary accession^
of 25 banks. Of the banks that joined the
FOREIGN EXCHANGE RATES3 1919-1927
system, 24 were newly organized national
Figures showing the movement of rates of banks (one of them succeeding a national bank
exchange at New York City have been pub- that had previously suspended), 17 were nonlished in the FEDERAL RESERVE BULLETIN for member banks that became members—7 as
several years for a considerable number of state institutions and 10 taking out charters
countries. These figures are monthly averages as national banks—and 4 were banks which
(and yearly averages) of daily quotations, and resumed operations after having previously
most of them, since July, 1921, are based upon suspended. Of the banks that withdrew from
quotations furnished by the Federal Reserve the system, 7 were State banks that volunBank of New York in accordance with tariff tarily relinquished membership after advance
legislation passed in May of that year. The notice to the Federal Reserve Board, 1 was a
others are taken from unofficial sources.
member State bank which failed to renew its
In this issue of the BULLETIN (pp. 56-62) membership in the system at the expiration
tables are given showing these average rates and renewal of its State charter, 5 were con-
10
FEDERAL RESERVE BULLETIN
verted into nonmember State banks, and 7
were absorbed by existing nonmember banks.
The net gain in membership from banks
joining and withdrawing from membership
was more than offset by losses incidental to
mergers between member banks and suspensions. Ninteen losses to membership resulted
from mergers between member banks, making
a total o 127 since the first of the year. Suspensions accounted for the loss of 17 banks
and voluntar3r liquidation for the loss of one.
Changes for the period are shown in detail in
the following table, by class of member bank:
CHANGES IN THE NUMBER OF MEMBER
THE FEDERAL RESERVE SYSTEM, BY
MEMBER, JULY 1 TO OCTOBER 10, 1927
BANKS
CLASS OF
Number of member banks
Class of change
Total
Active member banks, July 1, 1927
-.
Additions to membership:
Organization of national bank
Conversion of nonmember bank to
national
...
Admission of State bank
Resumption following suspension. __
Conversion within the system
Other additions.
_
Total additions..
Losses to membership:
Merger between member banks—
Intraclass
j
Interclass.
_
I
Voluntary liquidation (terminal) _ _ _ \
Suspension and insolvency...
j
Absorption of member bank by non- j
member bank
_
j
Conversion of member bank to non- j
member bank
_
j
Withdrawal of State bank
!
Conversion within the system
Total losses..
Net changeActive member banks, October 10,1927-
National
7,790
State
1,309
23 |
10
7
4
45
41
57 ;
33
27
-12 !
9,087
+8
-20
1,289
7,798
1
Succession between members of one class and members of the othe
without effect on the number of banks in the system.
2
National bank organized to succeed a national bank that suspended
during the preceding quarter.
3
Includes 1 bank which failed to renew its membership in the system
at the time of the expiration and renewal of its State charter.
JANUARY,
192S
$250,000,000, which had been provisionally
specified for the issue.
Treasury disbursements on December 15
included payment of interest which came due
on that date in the amount of some $75,000,000;
and payment of 4J^ per cent Treasury notes—
an issue of January, 1923, which matured on
December 15 in the amount of some $336,000,000. These notes were accepted in subscription for the new certificates, but in making
allotments no preference was given to such
subscriptions over subscriptions in cash.
Payments received December 15 under
foreign debt settlements, on account of principal and interest, included a payment by
Great Britain of $92,575,000, which was
tendered in the 43^ per cent Treasury notes
maturing December 15; and payments in cash
received from Belgium, Czechoslovakia, Estonia, Finland, Hungary, Lithuania, and
Poland, amounting in the aggregate to some
$3,970,000.
Provisional settlement of the indebtedness
of the Greek Government to the United
States, amounting on January 1, 1928, to
$19,659,836, principal and interest, was announced by the Secretary of the Treasury on
December 5. The Secretary proposed to
recommend to Congress the concluding of an
agreement for funding this indebtendess over
a period of 62 years, on the basis ol the British
settlement with Greece effected last April.
As a part of this settlement, under credits
established in 1918-19, a further advance to
the Greek Government of $12,167,000 at 4
per cent is proposed, with provision for amortization over a period of 20 years. This loan
will be added to the loans secured on the
Greek revenues now under the control of the
International Financial Commission, and the
proceeds of the loan are to be applied to the
work of the refugee settlement commission.
SUBSCRIPTIONS
AND A L L O T M E N T S , BY
SERVE D I S T R I C T S
FEDERAL
RE-
[3M per cent Treasury certificates of indebtedness, dated December 15,
1927, maturing December 15, 1928. Series TD-1928]
[In thousands of dollars]
TREASURY FINANCE
To provide for its cash requirements until
March, in so far as these requirements may
exceed tax and other receipts, the Treasury
announced x early in December an offering of
one-year Z /i per cent certificates. This offering was freely subscribed for, as is shown in
the table following. Total subscriptions of
some $1,290,000,000 were scaled down in
making allotments to $261,760,000, which
was somewhat in excess of the amount,
Federal reserve district
Total.
Boston
._
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas C i t y . .
Dallas.
San Francisco..
Subscriptions: Allotments
$1,290,117 |
96,171
480,678
134, 354
92,160
50, 043
59, 239
131, 630
25, 604
14. 553
17', 839
47, 345
140,498
$261,761
22, 741
82,066
25, 613
20, 422
12, 788
16,619
27,119
7,007
4,247
5,382
13, 381
24, 372
11
FEDERAL RESERVE BULLETIN
JANUARY, 1928
NATIONAL SUMMARY OF BUSINESS CONDITIONS
Industrial activity and freight-car loadings
declined further in November, while retail trade
showed more than the usual seasonal increase.
The general level of wholesale commodity
prices, after advancing for four months, remained practically unchanged in October and
November.
Production.—Output of manufactures and
minerals was reduced in November, and the
combined index of production, after adjustments for customary seasonal variations, fell
below the 1923-1925 average for the first time
since 1924. The largest decline was in the
output of automobiles, owing largely to'prep-
production of the 17 principal crops was about
2 per cent less than last year, but 3 per cent
above the average of the last 10 years.
Trade.—Retail trade increased slightly more
than is usual in November. Compared with a
year ago, retail trade of department stores,
mail-order houses, and chain stores was larger,
while wholesale trade continued in slightly
smaller volume in nearly all reporting lines.
Freight-car loadings declined during November, and in the early part of December were
smaller than in the corresponding period for
the past four years. There were large decreases in loadings of all classes of commodities.
150
PERCENT
150
100
100
50
50
PRODUCTION OF
MANUFACTURES AND MINERALS
1923
192A-
WHOLESALE PRICES
0
1925
1926
1927
1923
1924
1925
1926
1927
Index of production of manufactures and minerals. (1923-1925
average=100.) Latest figures, November
Index of United States Bureau of Labor Statistics. (1926 = 100,
base adopted by bureau.) Latest figure, November
aration for production of new models. Iron
and steel production has also declined further
and in November was the lowest since 1924.
In December, however, inquiries for iron and
steel increased. Textile-mill activity was
slightly curtailed in November but continued
at a higher level than in previous years. There
were decreases in the production of coal, building
materials, and leather and shoes. Building
contract awards showed seasonal declines in
November and in the first two weeks of December and were slightly smaller than in the corresponding period of last year.
The total value of about 50 crops in 1927 is
estimated by the Department of Agriculture at
$8,430,000,000, an increase of $635,000,000 over
1926. The greatest increases in value were
shown for cotton, corn, barley, and oats, while
the largest decrease for any individual crop was
shown for potatoes. The physical quantity of
Prices.—The general level of wholesale commodity prices, as measured by the index of the
Bureau of Labor Statistics, after a continuous
advance since early in the summer, remained
at practically the same level in November as in
October. Changes were relatively small in all
groups, increases occurring in foods and hides
and leather, and decreases in farm products,
textiles, fuels, and building materials. In the
first two weeks of December prices of wheat,
cattle, hogs, cotton, pig iron, and softwood
lumber declined, while those of silk, woolen
goods, hides, and sole leather advanced.
Bank credit.—Between the middle of November and the middle of December total
loans and investments of member banks in
leading cities showed a considerable increase,
reflecting continued growth in the volume of
loans on securities and in the banks' investment
holdings. In the same period loans chiefly for
12
FEDERAL RESERVE BULLETIN
BILLIONS OF DOLLARS
10
BILLIONS OF DOLLARS
10
1923
1924-
1925
1926
JANUARY,
1928
commercial purposes, which reached a seasonal
peak in October, showed a further slight
decline.
At Federal reserve banks the seasonal increase in currency requirements and the continued demand for gold for export during the
four weeks ending December 21 were reflected
in a growth in member bank borrowing. At
the end of this period the total volume of
reserve bank credit in use was larger than on
any other date in the past six years.
Somewhat firmer conditions in the money
market in December were reflected in increased
rates on call money. Rates on prime commercial paper and bankers' acceptances remained
unchanged during the month.
1927
Monthly averages of weekly figures for banks in 101 leading cities.
Latest figures are for December
FEDERAL RESERVE BOARD INDEXES OF PRODUCTION, EMPLOYMENT, AND TRADE
! Building contracts
Produc-1
awarded 1
tion of
minerals i
Year and
month
Department-store
Monthly average 1919=100
Monthly average 1923-1925=100
1926
July
August
September. _.
October
November. __
December...
107
111
112
111
108
105
107
111
112
110
106
103
107
109
111
115
118
119
126
146
137
126
119
131
124
129
130
126
130
136
108 1
108 :
109
109 j
108
106 [
91
107
117
111
97
84
97
97
100
94
1927
January
February
March
April.
May
June.
July
August
September...
October
November...
107
109
111
108
111
108
106
107
105
103
98
105107
110
109
111
108
106
107
105
102
98
116
118
118
104
108
104
100
106
105
105
101
94
96
151
147
135
154
130
135
127
137
114
123
131
131
128
126
144
128
119
121
137
125
105
109
109
108
107
104
101
104
104
101
87
91
103
90
87
87
88
111
112
106
93
94
%
96
94
95
93
95
100
96
91
95
;
|
!
|
i
!
!
:
!
I
93
94
96
96
95
94
'
'
:
!
;
!
!
I
104
108
108
112
109
108
99
105
131
158
156
234
133
134
144
139
138
146
125
130
142
153
156
128
133
130
132
137
138
137
92
94
94
03
93
92
91
91
92
92
90
102
109
110
108
108
106
101
104
104
105
101
114
107
129
143
132
130
97
113
130
151
156
130 I
139
129
140
127
130
130
144
143
133
139
124
131
142
143
138
129
125
130
143
152
154
139
139
140
138
138
136
133
130
133
136
137
i The indexes of production and car loadings are adjusted to allow for seasonal variation; the indexes of building contracts, wholesale disribution, and department-store sales and.stocks are shown both with and without seasonal adjustments.
13
FEDERAL RESERVE BULLETIN
JANUARY, 1928
FINANCIAL, INDUSTRIAL, AND COMMERCIAL STATISTICS
RESERVE BANK CREDIT
RESERVE BANE CREDIT IN USE
[Monthly averages of daily figures. In thousands of dollars]
BILLIONS OF DOLLARS
Ril.liONS OF DOLLARS
2
i
1926— July
August.
September
October
November
December
1927—January
February
March
1925
1926
1927
Monthly averages of daily figures for 12 Federal reserve banks.
Latest figures are averages for December
:
_
;
!
j
!
!
|
I
|
April.
May
June
July
August
SeptemberOctober
November..
December..
Acceptance's
Bills discounted
Bills
for
member bought
banks
Reserve
bank
credit in
Month
1,166, 564
1,158,264
1,225,236
1,269,356
1,270,057
1,380,571
1,146, 523
1,007,624
1,029,319
1,038,857
999,504
1,033,123
1,026,152
1,021,830
1,139, 342
1,213,191
1, 331,008
1,513,119
555, 799
641, 797
665, 566
618, 367
671, 722
486, 875
427, 716
447,286
472, 984
428,563
453,997
409, 439
422,192
424,413
415, 216
528, 624
United
States
securities
379,745
353,903
315,747
306, 413
302, 30»
321, 446
310, 637
306, 707
344, 921
341, 081
291, 495
397,764
381,081
438, 511
500, 637
506,177
579, 238
605, 841
231,132
245, 094
263, 992
294,296
346,859
384,826
345, 448
305, 013
254, 618
248, 429
233, 224
205,273
189, 774
173,122
215, 926
281,903
335, 908
377, 712
i Total holdings of bills and securities by all Federal reserve banks
including "other securities" and foreign loans on gold.
DISCOUNTS AND DEPOSITS OF FEDERAL RESERVE BANKS
[Monthly averages of daily figures. In thousands of dollars]
Federal Reserve Bank
Month
Total
Boston
Discounts:
1926—June
July
August
September..
October
NovemberDecember..
1927—January
February...
March
April
May
June
July
August
SeptemberOctober
November..
December..
Deposits:
1926—June
July
August
September
October...
November
December.
1927—January
February
March
April
May..
June
July
August
September
October.
NovemberDecember..
476,044
548,966
555,799
641,797
665,566
618,367
671,722 I
486,875
393,636
427, 716
447,286
472,984
428, 563
453, 997
409,439
422, 192
424,413
415,216
528, 624
2,241,415
2,262,420
2,253,350
2,273,205
2,280,180
2,279,135 |
2,289,632
2,300,204
2,266,460
2,284,809
2,301,120
2,326,816
2,355,428
2,339,478
I 2,331,452
2, 350,875
2,380,856
2,429, 976
2,435, 984
Richmond
New
York
117,785
165,983
163,270
182,447
164,579
134,908
154,570
120,787
90,232
114, 391
121,628
137, 765
91.932
122, 892
118,418
142, 360
126, 862
106, 511
171,114
49,243
48,135
45,851
46,224
49,918
43,826
60,785
44,184
36,158
41,819
43,744
45,841
45,227
46,791
39,566
38, 240
38,425
38,064
47,854
145,362 ; 865,577
148,013 ' 857,668
145, 625 i 847,061
147,447 I 862,912
153,231 | 853,359
155,409 856,416
150, 252 ! 879,596
148, 810 i 885,641
149,134 i 856,053
146,177 I 878,285
148,394
148,045 ! 908, 188
149,846 ; 941,867
152, 568 ! 918,918
151,977 ! 902, 138
153, 393 | 911,090
157,165 i 921,315
161, 702 946,306
156, 775 959,131
135,361
137,621
136, 502
137,152
139, 637
139, 260
139,419
141,195
139,360
24,816
34,529
36,653
45,498
42,180
38,031
55,726
34,476
28,669
35,538
23,201
37,129
33, 843
29,689
29,854
28,377
33, 290
36, 354
40,189
43,977
37,221
33,666
44,966
70,386
75,602
90,051
62,107
39, 424
31, 888
53,890
43,624
41,801
27,804
34, 762
43, 720
46,833
58, 640
181,333
185,981
188,314
188,048
185,945
184, 749
181,215
182,290
183,035
188,427
140, 451 188,122
138,961 188,376
137,874 190, 247
137,993 189, 620
138, 571 192,145
140, 911 190, 489
141,539 190,085
142,328 192, 759
140,113 188, 794
Atlanta
47,366
41,775
44,918
46,359
45,664
35,516
29,620
22,498
23,409
22,221
22,506
25,450
22,374
21,839
19,671
26, 251
28,888
21,516
24, 412
38,384
42,011
47,585
65,345
55,681
50,455
47,553
34,435
26, 738
31,389
34,140
34,625
32, 618
36, 273
34,671
31. 085
25,999
32, 695
36, 084
52, 547
60,854
54,591
67,736
89,224
105,702
119,165
90,847
78,297
70,691
56,281
52, 679
63,917
59,685
40, 470
31,414
36,483
46,887
65,040
!
Minne- Kansas Dallas
apolis
City !
Chicago
66, 556 72,477
71,418 73,453
70, 054 71,873
70,061 72, 718
72,240 74,640
72, 626 72, 938
71,010 71,802
73,335 72,723
72,276 72,531
70,484 71,134
71,211 72,766
72, 586 71,126
71,679 !68,810
74, 262 68, 471
74,478 i 67,482
74, 618 i
74,666 !70,827
76,719 !70, 412
75,111 !70, 524
28,536
30,642
35,196
43,462
42,163
37,548
37,844
19,072
14, 531
14, 374
16,202
24,024
26, 251
29,818
24, 749
27,992
21,484
18,135
19,299
329,191 81,270
335,306 82, 917
340, 386 82,092
338,071 I 80,937
336, 643 83,745
332, 040 82, 771
329,801 82,823
331, 215 83,325
329,680 83,754
328,167 82,780
332,363 83,827
338,974 83,193
338,545 82,434
337,875 82, 622
345,465 81,589
343, 955 81, 575
346, 798 84, 745
345, 669 87. 920
350, 010 87, 915
6,254
7,556
13,076
11,212
11,145
8,613
5,101
4,146
4,324
4,609
6,058
6,737
6,514
5,952
6,109
4,435
2,672
2,603
2,990
18, 472
16,164
12,693
13,542
12,455
16,866
13,663
10,256
9.437
8,584
11,902
17, 333
16, 524
12, 460
9,330
10, 698
15, 730
18,116
15,175
51,698 88,155
51, 538 92, 651
49, 787 94,619
50,099 93,706
51, 574 92, 848
53,070 91, 393
52,550 !91,127
52, 278 |90,880
50,759 91, 425
51,484 !
90,789
50,371 i90,832
49,156 I89, 378
49,678 !
88,342
50,607 '90,916
49,714 !
91,611
52,578 |90,155
55,623 ! 542
90,
57, 823 94,240
56,427 93, 282
San
Francisco
11,921
16.138
20.139
25,000
19,451
17, 223
10,320 I
5,606
3,215 !
3,197 j
4,403
4,670
6,172
7,374
12,742
10, 981
7,151
8,388
5,399
57, 087
57,478
57, 595
58,913
60,984
61,148
62,902
62,156
63,763
63,170
62,587
61, 645
59,765
60,209
59, 759
63, 044
66,429
69,165
69,849
37, 745
47,958
48,161
60,006
62,720
64,077
47.324
38,461
39,202
49,015
53,331
43,107
41,390
45,831
46, 055
35, 597
43, 709
39,114
42,428
167,348
168,376
169,442
173,141
175, 334
177,315
177,13«
176, 356
174,690
175,018
177,810
177,188
176,341
175,417
176, 523
180, 219
181,122
184,933
'188, 053
14
FEDERAL RESERVE BULLETIN
JANUARY, 1928
MONETARY GOLD STOCK AND MONEY IN CIRCULATION
MILLIONS OF DOLLARS
MILLIONS OF DOLLARS
100! ~
1100
1
CHANGES IN
I
M O N E T A R Y GOLD STOCK
INCREASE OR DECREASE ( - ) IN MONETARY GOLD STOCK
[In thousands of dollars]
80-
1922 ! 1923 ! 1924
Month
January...
February..
March
April
May..
June..
July
August.
September..
October
November..
December..
1
24, 689', 23,716
38,388 10,864;
36,7061 6,8731
4,178! 11,380:
7,171 46,185j
, 13,217 21,719|
43,966j 29,250i
._
!, 0961
18,087!
15,0721
18,142!
22,801'
32,639!
25,021!
30, 601!
39,997|
1925
1927
45,473 -76,592 12,199 72,268
33,794 -53,500 11, 540 21,313
40,496 -23,245 18,386 11, 083
47,327
3,618 - 3 , 3 9 2 i 12,944
44,204 11,472 - 4 , 7681 -1,427
33, 228
3,398 14,007 j -20,943
22,962
5,488 23,7191 -7,465
9,611 12, 631 2,008
8,527
-1,212 - 7 , 3 6 3 -17,519
7,688 -30,159
-1,967 25,938
3,181 -89, 723
17,362 -10,037
1,985 15, 432 1 70, 487
-27,178
Preliminary.
NET IMPORTS OR N E T EXPORTS ( - ) OF GOLD
[In thousands of dollars]
Month
I
1321
1S22
S923
1925
„
llOO
192S
1927
MONETARY GOLD STOCK OF THE UNITED STATES»
[First of month figures. In millions of dollars]
Month
1922
1923
1924
1925
January
3,660
February
. _ 3,685
March
__ 3,723
April
3,760
3,764
May
June
3,771
3,785
July
3,829
August . . .
3,855
September
October
3,873
November
__ 3,888
December..
3,906
3,929
3,953
3,963
3,970
3,982
4,028
4,050
4,079
4,111
4,136
4,167
4,207
4,244
4,289
4,323
4,364
4,411
4,455
4,488
4,511
4,521
4,511
4,509
4,527
4,499
4,423
4,369
4,346
4,350
4,361
4,365
4,370
4,383
4,382
4,407
4,397
1926
1927
1928
4,399 4,492 M,380
4,412 4,564 !
4,423 4,586 :
4,442 4,597 i
4,438 4,610 i
4,433 4,608
4,447 4,587 !
4,471 4,580
4,473 4,588
4,466 4,571 !
4,473 4,541
4,477 4,451
i Revised figures; see BULLETIN for December, 1927, p. 800.
» Preliminary.
UNITED STATES MONEY IN CIRCULATION »
[First of month figures. In millions of dollars!
Month
1922
1923
1924
1925
1926
1927 , 1928
i
January...
February..
March
April
May
June
July..
August
September.
October....
November.
December.
4,690
4,441
4,491
4,497
4,468
4,455
4,463
4,424
4,480
4,608
4,646
4,704
4,817
4,614
4,703
4,747
4,759
4,797
4,823
4,787
4,876
4,945
4,925
5,018
5,044
4,777
4,887
4,899
4,853
4,905
4,849
4,756
I 4,859
4,863
4,942
5,052
5,047
4,802
4,853
4,818
4,789
4,841
4,815
4,795
4,867
4,916
4,969
5,044
5,104 5,095 2 5, 005
4,841 4,846
4,904 4,885
4,860 4,862
4,907 4,891
4,923 4,893
4,885 4,851
4,909 4,846
4,930 4,854
4,978 4,948
5,021 4,946
5,037 4,952
1 Revised figures; see BULLETIN for December, 1927, p. 800.
Preliminary.
2
January.
February
March
April
May
June
July
...
August
September
October..
November
December
1921
30,909
41, 591
86, 562
80,278
57,109
42,803
60,513
84,230
63, 637
39,531
50, 691
29, 504
1922
1923
1924
I 1925
1926
1927
24,348 44,855 •
16,264 44,465
6,984 34,606, -46,997 21, 565 19,895
5,559 33,505- -17, 768 39,188 10,758
8,533 44,027- -12,734 -4,768 11,911
45,332 40,481| -1,997! -6,408' 31,702
18,885 24,913! -2,287j 15, 544 12, 771
27,407 18, 507 j 5,787: 14,751
8,935
30, 655 15, 752!
2,726! -17, 764
6,353
26,941
2,076i - 2 , 656 - 7 , 094 -11,465
28,488 15, 5771 22,702!
7,701! -8,642
39,010 13,173- -13,904:
9,011 -53,184
1
31,930 -29,401
1,248!
66,000
25, 708
27,007
32, 525
10,665
5,587
11,376
42,343
18,136
23,066
3,275
14,877
23, 730
1 Preliminary.
INCREASE OR DECREASE ( - ) IN GOLD STOCK
THROUGH CHANGES IN GOLD UNDER EARMARK FOR FOREIGN ACCOUNT
[In thousands of dollars]
Month
1921
1922
1923
January
__ 3,990
-1,629
February
-1,990
4,329
March..
April
1,000
May
June
-3,000
July
5,000
-1,500
August
September
10,000
500
October
8,000 - 1 , 500 - 2 , 0 0 0
November. _
-200
December..
-2,000
1927
1924
_._!
593
-2,452
-558
1,000
2,000
- 2 , 583
-7,984!
-13,229!
-17,000;
-500!
-l,500!
-810| -6,043
-1,366-11,000
-6,8251-22,988
14,850|
12,725
-580
5,075
-3,901
4,000
8,725 19,200
901 - 2 , 4 0 0
4
2,870
2,000 - 7 , 4 9 8
1,008
-2,000
19,487
3,180
- 1 , 502
-1,000
-95,000
-500
184
- 2 , 501
-9,000
- 2 5 , 001
-40,000
-8,500
i
NOTE.—Earmarking of gold for foreign account has
the effect of decreasing the country's monetary stock
and withdrawal from earmark has the opposite effect.
The actual increase or decrease in the monetary gold
stock, however, during any given month, which is accurately shown in the table at the head of this column,
does not correspond exactly with the sum of the figures
given in the other twTo tables because (1) some incoming gold is not in monetary form, (2) gold earmarked in
one month is sometimes exported in a subsequent
month, and (3) the total change reflects also domestic
production of gold and the movement of gold into and
out of use in industry and the arts.
15
FEDERAL RESERVE BULLETIN
JANUARY, 1928
MONEY RATES IN NEW YORK CITY
1922
1923
192**
1926
1925
OPEN-MARKET RATES
FEDERAL RESERVE BANK RATES
RATES IN NEW YORK CITY
DISCOUNT RATES
IRates on all classes and maturities of eligible paper]
Federal reserve bank
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
Hate in
effect on
Jan. 1
Date established
Month or week
Aug. 5, 1927.. .
Aug. 5, 1927...
Sept. 8, 1927...
Aug. 6, 1927...
Aug. 16, 1927..
Aug. 13,1927..
Sept. 7, 1927..
Aug. 4, 1927...
Sept. 13, 1927..
July 29,1927_.
Aug. 12, 1927..
Sept. 10,1927..
Date established I P r ! j J ° 1 1 8
rate
1926
October
November
December
1927
January.
February
March
April
MayJune.
July
August.
September
October
November.
December
j
!
Aug. 5,1927...
Aug. 22, 1927..
do
Aug. 5,1927...
do
do
July 29, 1927 __
NOTE.—Rates on prime bankers' acceptances. Higher rates may be
tharged for other classes of bills.
A veragerate j A verage_yield
! Previous
rate
BUYING RATES ON ACCEPTANCES
1-15 days...
16-80 days..
31-45 days..
46-60 d a y s . .
61-90 d a y s . .
91-120 days.
121-180 days
Prevailing rate o n -
1
[Buying rates at the Federal Reserve Bank of New York]
Maturity
1927
i Stock exchange call loans; new and renewal rates.
i Stock exchange 90-day time loans.
» Three issues—%%, 4, and 4K per cent; yields calculated on basis of
last redemption dates—1956, 1954, and 1952.
* Change of issues on which yield is computed.
16
FEDERAL RESERVE BULLETIN
JANUARY, 1928
PREVAILING RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES
The rates shown are those at which the bulk of the loans of each class were made by representative banks
during the week ending with the 15th of the month. Rates reported by about 200 banks with loans exceeding
$7,500,000,000.
Month
Boston
New
York
Philadelphia
FEDERAL RESERVE BANK CITIES
RichCleveAtlanta Chicago St. Louis
mond
land
Minneapolis
Kansas
City
Dallas
San Francisco
Prime commercial loans
1926—December
1927—January
February
March.
April
;
_:
June
July
August
September
October
November
December
j
!
May
i 434-534
..
434
4^-4}
4>
3
4
I 434-5
434-5; _
1434-5341
14 -5"
U -5
1
g
>
4
| 4
| 4 -4j4
4
I
-434
; 4 -4>4
>ix-l
14^-5 I
4^-5
4 -6
5 -6
5 -6
5 -6
434-6
5 -6
5 -6
5 -6
5 -6
5 -6
5 -6
5 -r:
4*4-534;
" ' -* 4^-5
434-5
$4.-4*,
434-5
434^5
434-5
434-5
4 -5
434-5
4 -5
4 -5
4^-43,
434-5
4^-5
4^-5
5 -53^;
4^-534!
434-534
4H-5J*!
4^-534,
*/3
"72(
4
i :5H
43I-5 1
4^-5
5 -b\
5 -51,
5
5
5
5
5
5
5
5
5
5
5
4^-6
434-6
5 -6
434-6
4*4-6
434-6
434-6
434-6
4^-5
4 -6
434-6
4 -6
4^-6
5 -6
5 -6
5 -6
5 -6
5 -6
5 -6
5 •o
5 _7
5 -7
5 -6
5 -6
5 -7
5 -7
-7
5
5
5
5
5
5
5
5
-6
-6
-6
-6
-6
-6
-6
5 -6
5 -6
5 -6
5 -6
5 -6
5 -6
5 -6
4*4-5
434-5
434-4*.
5
5
5
5
5
h
-7
-6
-6
-6
-6
-6
5
5
5
5
5
5
5
5
-«
-6
-6
-6
-6
-6
-6
5
5
5
5
5 -6
5
5
5
5
5
5
5
-6
-6
-6
-6
-6
-6
Loans secured by prime stock exchange collateral
I
1927—June
July
August
September
October
November
December
534-6
6^-6
5 -6
5^-6
5 -6
5 -6
4H-6
5 -6
5^-6
5 -534
434-4*4
43/2
4^-5
434-5
434-5
434-5
4*^-5
434-5
434-5
434-5
434-4*4
4V£-5
4M-434
434-4%
434-434
434-434
1414-6
14^-6
1434-6
14^-6
1 434~6
5 -6
4H-6
6
4«4~6
5 -6
5 -6
4*4-6
4
5
5
5
5
5
5
5
-6
-6
-6
-6
-6
-6
-6
434-5
414-5
434-5
434-5
4^-5
5 -534
5
434-53^
434-3
4^-6
434-6
4^-6
4H~6
4Vs-5y2
4H-534
Loans secured by warehouse receipts
15 -6
15 -6
15 -6
14*4-6
1 434-6
5 -6
1927—June
July
August
September
October
November
December
5 -6
434-6
5 -6
5 -6
5 -6
6
5 -6
43|-6
5
5
15
5
5
5
5
-6
-6
-6
-6
-6
-6
-6
434-5
434-5
414-5
4^-5
Interbank loans
1927—June
July
August
September
October
November
December
_
4H
434
4 -4M
4
4
4
434-5
434-5
4 -5
4M-434
4 -434
4 -434
4 -4 J 4
434-5
4H5
434-5
434
434
434-5
5
5
5
5
434-5
4M5
5
5
-534
5
5
5
4H-5
4M
5
5
5
5
5
5
5
-6
-6
-6
-6
-6
-6
-6
5
5
5
5
5
5
5
5 -534
5 -534
5 -534
5 -534
4*.4-5J4
4
5
4>/~ v
5
5
5
5
5
5
-6
-6
-6
-6
-6
-6
6
6
6
6
6
6
6
42
-
FEDERAL RESERVE BRANCH CITIES
Loans secured by prime
stock-exchange collateral
Prime commercial loans
Loans secured by warehouse
receipts
Interbank loans
City
October
Buffalo.
Cincinnati
Pittsburgh
Baltimore
Birmingham. _
Jacksonville
NashvilleNew Orleans
Detroit
Little Rock
Louisville
Helena
Denver
Oklahoma City
Omaha
El Paso
Houston
San Antonio
Los Angeles
Portland
Salt Lake City
Seattle
Spokane
1 Revised.
5 -6
5M-6
5 -6
34
3
5 -6
5 -6
6
34
5 -6
5 -6
8
4 -6
5 -6
434-6
8
5 -6
434-6
6 -7
6
6
6
6
Nojam5 -6
534-6
5 -6
5 -6H
5 -6
5 -6
6
534-6
5 -6
5 -6
5 -6
8
4^-6
5 -6
434-6
8
5 -6
4M-6
6 -7
6
6
Decem-
October
5 -6
5M-6
5 -6
4 -6
5 -6
5 -6
6
534-6
5 -6
534-6
5 -6
4^-6
6
5 -8
6
534-6
4H6
6 -7
5 -6
8
5^-6
6
534-6
6 -8
5 -6
6 -8
6 -7
6
6
6 -7
2
5 -6
5 -6
8
6
5 -6
434-6
8
5 -6
434-6
6 -7
6
6
6
6
November
5
5
5
5
-6
-6
-6
-6
6
5 -8
6
534-6
434-6
6 -7
5 -6
8
5 -6
6
534-6
6
5
6
6
-8
-6
-7
-7
6
6 -8
6 -7
6
December
5 -6
5 -6
5 -6
434-6
6
5 -8
6
534-6
5 -6
6 -7
5 -6
8
5H-6
6
5H-6
6 -8
5 -6
6 -7
6 -7
6
6 -7
6 -7
6
October
November
December
6
6 -7
6
6
6
6 -8
6
534-7
6
534-6
6
434-7
534-6
534-6
534-6
5 -7
6
6 -8
534-8
6
6 -6
7 -8
5 -7
6 -8
6 -7
6 -7
7 -8
6
6 -7
6
534-6
6
34
5 -6
5M-6
6 -7
6
6 -8
534-7
6
6 -634
7 -8
5 -6
6 -8
6 -7
6 -7
7
6 -7
7
634-7
5 2 -6
5 -7
6
6 -8
534-6
6
6
7 -8
5 -7
6 -8
6 -7
6 -7
7
6 -7
7
October
5
-5^2
-6
-534
-6
6
534-6
5 -6
5 -534
5
£
5
5
H6
5
6
-634
6
534-6
6
5
5 -6 !
6
I
5
6 I
6 I
-634j
6 !
N
™F"
ber
5
-5
-6'
-534
-6
6
534-6
5 -6
5 -534
6
5
6 -8
6 -634
6
5
5
5
5
D c m
i l ber
5
5
5
5
-6
-6
-6
-6
5 -6
5 -6
6
6
6 -8
534-6
6
5
5 -6
6
6
6 !
6 -634
4
5
6
6
6
-$y.
5 -6
6
6
6
6
6
17
FEDERAL RESERVE BULLETIN
JANUARY, 192S
MEMBER BANK CREDIT
MEMBER BANK RESERVE BALANCES AND BORROWINGS AT FEDERAL RESERVE BANKS
[Monthly averages of weekly figures. In thousands of dollars]
Reserve balances
Borrowings at Federal reserve banks
Reporting member banks
Month
City
Other !
leading
cities ;
!
725,298
717,310
682,026
709,853
687, 972
720,255
775, 900
728, 491
724, 240
726, 262
728, 171
768.193
769,189
960,263
960,239 i
962,691 ,
961,184
971,108 ;
976,346
973,318 ;
967,062 !
983, 241
982,785
996,927
998,659 !
1,017,774 !
New York
1926—December
1927—January
February
March
April
May
June
July
August
September
October
November
Dece riber
Total
1,685,561
1, 677, 549
1, 644, 717
1,671,037
1, 659, 080
I, 696, 601
I, 749, 218
1, 695,553
L, 707,481
I, 709, 047
L, 725. 098
L, 766,852
L, 786, 963
Reporting member banks
Other
member
banks
579,291
587,647
584, 612
593,492
594,900
593,528
592, 650
603, 200
605,427
613, 709
629, 976
633,627
623, 491
Total
2,264,852
2,265,196
2,229,329
2,264,529
2,253, 980
2,290,129
2, 341,868
2,298, 753
2,312,908
2,322, 756
2,355, 074
2,400,479
2, 410, 454
O t h e r
Ttfftw Ynrlr
99,611
75,894
59,907
73,118
78,459
90,167
51,485
59,383
73,865
90,420
74,502
72.923
126,850
Total
j
i
'
:
!
•
•
i
347,515
223,259
172,986
195,001
191,883
213,476
219,307
213,252
182,027
176,509
208,435
203.001
261,369
447,126
299,153
232,893
268,119
270,342
303, 643
270, 792
272,635
255,892
266,929
282, 937
275,924
388, 219
Other
member
banks
200,647
177,141
158, 791
150, 734
151,086
155,476
163, 753
160, 970
156,838
150, 495
145, 245
144,600
143,342
Total
647,773
476,294
391, 684
418, 853
421,428
459,119
434,545
433,605
412,730
417, 424
428,182
420,524
531, 561
LOANS, INVESTMENTS, AND DEPOSITS OF REPORTING MEMBER BANKS
[Monthly averages of weekly figures. In thousands of dollars]
Loans and investments
Loans
Month
Total
In New York City:
1926—December
19i7—January
February
March
April
May
June
July
August
September
October
November
Dece: nber
In other leading cities:
.-.. 1926—December i
'.tj 1927—January i 1
February
March i__.
ApriP
May1....
June1.—
July 1 1
August
September 1
October 1 .November 1
December 1 ..
Total:
1926—December!
1927—January i 1
February
March 1
Aprili
May 1
June 1
July 1 . 1
August
September 1
October 1 1
November1
December .. __
1
__
6,308,886
6.341,114
6,189.052
6.349, 701
6,421,165
6,534,882
6. 692, 243
6, 601,841
6,578,660
6, 705,170
6, 782, 502
6,953,615
7,124, 260
Total
Allother
4,575,021 1 2.018, 731
4, 593, 379 1 2,167, 859
4, 436, 601 1 2,047,374
4,525, 865 1 2,097.179
4,570,029
2,156,122
4, 628, 567 1 2, 200, 557
4, 767,162 i 2,325, 708
4, 720,139 ' 2,281, 271
1
4,748,052 I 1 2,275,360
4,910,943 1 2,313,326
5, 009, 556 2,369,631
5,115,427 1 2,464,515
5, 227, 528 2, 605, 321
2,556. 290
1
2,425, 520
1
2,389,287
1
2,428,686
' 2,413,907
1
2,428,010
1
2,441,453
1
2,438,868
1
2,472, 692
1
2,597,617
1
2,639, 925
2, 650, 912
2, 622, 207
Investments
1. 733,865
1, 747, 735
1,752,391
1, 823, 836
1,851,136
1, 906, 315
1,925,081
1,881, 702
1,830.608
1, 794, 227
1, 772, 946
1,838,188
1, 896, 732
Total
6,030,809
6,080, 894
5, 894, 478
6,063,771
6,079,869
6,169, 518
6. 421,358
6, 268,844
6,229,475
6, 291, 879
6, 371, 720
6, 527,526
6, 633, 578
14, 007, 537
14, 087,136
14,080, 003
14, 062,703
14, 240, 742
14,439,193
14, 504, 002
14, 599, 809
9, 889, 494
9, 824, 286
9, 771,198
9, 856, 564
9, 830, 525
9, 873, 865
9, 917, 768
9, 896,145
9,917,931
10, 002, 087
10,098,127
10, 077, 941
10,113, 543
3, 675,386
3, 670, 959
3, 657,172
3, 693,105
3, 697, 859
3, 740, 226
3, 820, 286
3, 832,740
3, 849, 786
3, 908,128
3, 955, 742
3, 945, 977
3,988, 333
6, 214,108
6,153, 327
6,114, 026
6,163, 459
6.132, 666
6.133, 639
6, 097,483
6, 063, 405
6, 068,145
6, 093,959
6,142, 385
6,131, 964
6,125, 210
3,850.823 I 13. 006, 541
3, 827, 218 13, 079, 750
3, 886, 260 13, 096, 404
4, 054, 307 13, 303, 572
4, 081, 760 13. 307, 731
4,133, 672 13, 352, 576
4,169,368 13, 403, 771
4,183, 858 13, 431, 721
4,144, 772 13, 439, 247
4, 238, 655 13, 611, 488
4, 341, 066 13, 778, 209
4,426,061 13, 836, 359
4, 486, 266 13,860, 204
_ 20, 049, 203
19, 992, 618
19, 846, 510
20, 260, 572
20, 333, 450
20, 542, 419
20, 779,379
20,681,844
20, 641, 363
20, 945,912
21, 221, 695
21. 457, 617
21, 724, 069
14, 464, 515
14,417,665
14, 207, 859
14, 382,429
14, 400, 554
14, 502,432
14,684,930
14, 616, 284
14, 665,983
14, 913, 030
15,107, 683
15,193, 368
15, 341, 071
5,694,117
5, 838, 818
5, 704, 546
5, 790, 284
5, 853, 981
5,940, 783
6,145, 994
6,114,011
6,125, 146
6, 221, 454
6, 325, 373
6,410, 492
6, 593, 654
8, 770, 398
8, 578, 847
8, 503, 313
8, 592,145
8, 546, 573
8, 561, 649
8, 538, 936
8, 502, 273
8, 540, 837
8. 691, 576
8, 782, 310
8, 782, 876
8, 747,417
5, 584, 688
5, 574, 953
5, 638, 651
5, 878,143
5, 932,896
6, 039, 987
6, 094,449
6, 065, 560
5, 975, 380
6, 032, 882
6,114,012
6, 264, 249
6, 382,998
13, 740,317
13, 651, 504
13, G57, 458
13,910,871
13, 912, 285
Revised; for explanation see p . 8.
Net demand, time, and Government deposits
19, 037, 350
19,160, 644
18,990, 882
19, 367, 343
19, 387, 600
19,522, 094
19, 825,129
19, 700, 565
19, 668, 722
19, 903, 367
20,149,929
20, 363, 885
20, 493, 782
Net
demand
5,093,951
5,127,308
4,935,006
5,068,281
5,066,081
5,179, 092
5,389,740 !
5,264,543
5,213,235 I
5, 224. 056 !
5,254,646 !
5,429,851 i
5.570,702 !
|
7,975,653 !
7.976,287 i
7,981,144 !
8,000,681 !
8,003,200 i
8,035,509 i
8,058,941 !
8,075,561 !
8,096,256 I
8,150,313 !
8,191,931 |
8,304,009 !
8,333,209 |
T.ine
Government
901. 789
917, 608
929, 499
929,103
950,045
956. 334
1,009,999
992,370
1,010,441
1,003,913 .
1,014,507 I
1,055,123
1,034,280
35,069
35,978
29,973
66, 387
63,743
34,092
21. 619
11,931
5,799
63,910
102, 567
42,552
29,096
4,938, 409
5, 010, 800
5,035, 513
5,138, 307
5,147, 212
5, 233, 452
5, 228, 600
5, 260,489
5,296,376
5, 344,921
5, 409, 019
5, 427, 714
5, 456, 570
92,479
92,663
76, 747
164, 584
157, 319
83, 615
116, 230
95, 671
46,615
116, 254
177, 259
104, 636
69,925
13,069,604! 5, 840,198
13,103, 595 i 5, 928, 408
12,919,150 ! 5,965,012
13,068,962 j 6, 067, 410
13,069,281
6, 097, 257
13,214,601
6,189,786
13,448,681
6, 238, 599
13, 340,104 ! 6, 252,859
13,309,491 i 6, 306, 817
13,374,369 I 6, 348, 834
13,446,577 I 6, 423, 526
13,733,860 I 6, 482, 837
13,903,911 I 6, 490, 850
127, 548
128, 641
106, 720
230,971
221,062
117, 707
137, 849
107, 602
52, 414
180,164
279, 826
147,188
99,021
18
FEDERAL RESERVE BULLETIN
JANUARY,
1928
BANKERS9 BALANCES IN FEDERAL RESERVE BANK AND BRANCH CITIES
FEDERAL RESERVE BANE a TIES
[Weekly reporting member banks. Monthly averages of weekly figures]
[In thousands of dollars]
City
Month
New
York
Boston
Philadelphia
Atlanta
Richmond
Cleveland
Chicago
St. Louis
Minneapolis
Kansas
City
Dallas
San Francisco
Due from banks:
1926—June
July
August
September.
October . . .
November.
December .
1927—January...
February. _
March
April
May
June
July
August
September.
October
November..
December..
44,282
39,468
38,732
40,258
36,083
41,031
37,755
40,246
39,050
40,963
48,196
42,815
45,846
45,947
44,126
43. 066
52,594
45, 687
42, 233
107,617
104,846
91,973
102,496
111,081
102,636
96,640
100,303
93,479
100,235
106,574
101,680
94,870
92,480
85,330
95, 323
110,715
104,024
102, 507
65,922
58,791
53,441
69,256
63,385
66,828
55,079
55,212
58,036
55,362
54,430
53,447
56,374
50,668
52,333
51, 233
52,330
60,908
52, 607
30,018
27,113
25,607
26,090
27,646
27,057
24,340
27,459
23,250
22,318
22,912
22,674
24,499
22,948
24,15fi
26, 380
24,880
24,307
22,319
15,778
14,862
14,083
15,934
16,341
18,465
17,680
12,839
7,520
7,544
6,820
6,713
6,718
6,847
6,214
6,444
6,237
7,017
6,455
12,226
12,826
11,833
12,274
14,420
12,688
12,082
14,923
13,323
11,744
11,658
11,467
10, 511
11,675
10,867
12, 578
12,874
12, 706
12,177
168,279
157,130
148,873
151,706
155 581
154,680
1161,824
1164,201
i 144,494
1154,938
i 151,752
1173,890
i 160,565
1148,335
i 146,775
i 152,156
i 152,718
i 158,101
150,433
29,300
27,859
26,235
25,582
28,037
29,503
28,400
31,673
29,850
29,852
28,208
27,296
26,503
25,626
26,995
25, 581
27, 958
30,629
33,107
21,620
22,568
19,252
20,264
22,264
22,794
22,239
21,532
20,017
19,822
19,836
19,602
19,932
21,744
19,844
27, 654
29,302
24,518
20,489
37,831
46,989
46,947
44,939
43,654
50,466
43,733
44,621
41,884
40,646
38,649
33,490
33,445
36,041
33,086
32, 942
36, 058
35,064
35,999
24,447
23,372
19,679
24,416
28,156
29,069
26,309
27,975
20,241
19,184
18,768
16,613
15,795
15,162
13,406
18,152
19, 211
20,569
19,368
61,296
53,980
60,277
63,917
68,016
50,606
54,380
60,798
62,112
64,371
50,832
51,325
63,615
52,269
53,313
58,846
56,817
66, 798
70,496
1926—June."
July
August
September.
October. _.
November.
December .
1927—January. . .
February..
March
April
May
June
July
August
SeptemberOctober
November..
December..
126,416
130,199
119,858
119,490
125,816
128,262
126,533
136,801
135,794
134,562
142,243
137, 294
143,113
160,660
152,083
141, 354
146,826
156, 487
150, 748
1,097,672
1,066,912
1,040,250
1,061,770
1,066,954
1,052,188
1,078,048
1,107,405
1,090,437
1,118,300
1,104,366
1,116, 781
1,170, 711
1,164,095
1,159,580
1,177,091
1,208, 959
1,323, 719
1, 281, 767
179,362
174,699
167,796
169,984
170, 767
165,589
163,054
173,041
173,142
172,512
170,573
169,109
164,173
169,079
167,855
168, 581
172, 928
173,491
168,043
46,344
49,529
48,949
49,932
48,214
46,647
45,143
48,845
53,578
54,017
55,613
55,089
56,135
60,290
60,420
61, 395
61.232
63,112
59,639
29,568
30,812
29,173
30,147
31,654
33,067
33,095
33,256
33,585
33,460
31,223
29, 585
30,346
30,359
31,266
32, 428
33, 786
39, 679
37,636
15,505
15,438
14,802
16,554
17,927
18,363
18,257
19,413
18,623
17,063
15,427
15, 544
14,113
15,394
14,872
18, 682
20, 058
19,927
18,939
381,543
373,312
371,742
374,605
359,722
349,234
1349,069
1372,379
1364,528
i 374,110
1 364,826
1374,373
1
347,948
1363,382
i 363,859
1371,952
i 376,762
i 368,062
370,021
81,441
83,870
82,664
80,331
79,292
78,936
79,495
88,533
88,347
87,039
86,085
81, 810
81,401
81,920
78,639
78,697
78, 930
85,293
86,384
48,613
93,669
46,733
108,780
43,113
110,499
45,627
103,734
50,364
98,413
52,698
97,038
50,771 . 96,657
53,080
101,170
55,471
95,337
90,268
53,586
50,934
86,741
47, 521
82,551
47, 514
82,674
46,463
91,837
45,525
91,238
57, 555
87,872
63, 751
83,780
62,327
83, 848
58,359
88,072
24,860
25,516
24,072
26,679
32,764
33,771
32,340
32,575
33,234
31,913
28,624
27,036
24,894
24,801
24,222
32,023
37,433
40,945
38,164
94,849
101,182
106,473
109,046
107,215
105,774
107,583
105,868
127,068
104,055
94,916
98,387
99,877
108,422
107,400
105, 736
110, 056
127,897
126,280
* Revised; see explanation on page 8.
FEDERAL RESERVE BRANCH CITIES
[Weekly reporting member banks.
Monthly averages of weekly figures for 1927]
[In thousands of dollars]
Due from banks
Due to banks
City
July
Buffalo
Cincinnati
Pittsburgh
Baltimore
Charlotte...
Birmingham
Jacksonville
Nashville..
New Orleans
Detroit
Little Rock
Louisville
Memphis
Helena
Denver
Okalhoxna City
Omaha
El Paso
Houston
San Antonio
Los Angeles
Portland
Salt Lake City
Seattle
Spokane
._
__
I
|
..!
'
12,893
14,042
36,096
14,333
5,516
9,988
11,236
5,753
15,363
34,705
3,450
7,410
13,268
1,891
14,074
12,219
17,978
2,742
15,951
7,137
54,264
10,131
4,959
16,638
3,912
August \
14,341
14,685
39,674
14,687
6,092
9,181
10,836
4,337
15,489
33, 738
3,029
6,534
11,392
1,878
14,436
10,161
17,396
2,397
16,286
8,082
54,476
10,586
4,561
17,646
4,857
October
12,834
13,244
14,013
16,367
38, 310 41, 016
13,837
15,648
7,216
7,847
10,481 ! 12,331
10,632 ! 11,377
5,287 !
6,977
18,833 ! 21,552
34,237 | 34,004
3, 761 ! 4,349
7,227
7,425
11,825 I 15,526
2,172 I 2,468
15,465
16,411
10, 023
13, 263
17, 526
19,482
2,275
3,024
19,105
17,654
8,077
7,350
52, 582 55,124
11,108
10, 643
4,909
5,457
18, 514
18, 243
4,840
4,637
Novem- December
ber
13,056
17,196
37, 273
14, 993
7,513
10,263
10, 948
9,229
19, 815
34,303
4, 718
7,240
16,535
2,665
19,101
16,294
18,026
4,043
16,937
8,471
55,283
11,651
6,209
17,918
4,778
14,071
15,279
14,021
6,388
8,514
11,816
8,279
18, 787
32,147
3,885
8,284
11,628
2,441
15, 750
14,010
17,357
5,183
16,153
8,770
53,947
10,641
6,304
18,087
4,630
July
August
25,380
34,863
125,049
38,346
6,512
7,479
12,942
12, 507
37,384
41,897
10,489
27,085
12,303
2,381
13,836
18,639
33,298
2,173
22,659
7,017
59,987
15,863
10,007
16, 790
7,783
24,510
38,047
128,467
40.449
6,946
7,224
18,559
10,851
36, 782
41,888
9,417
26.450
10,870
2,406
16, 792
16,290
40,604
2,091
26,243
8,401
56, 718
17,098
9,418
18,010
8,633
SeptemOctober November
ber
25,175
36,454
127,284
38,644
8,498
9,123
18,048
11,114
42,629
43,650
9,832
27, 795
12,888
2,868
17,958
15,900
38,142
1,977
34,484
9,086
44,688
20,467
10,464
19,464
10,124
24,886
36,298
130, 753
35,806
10,162
11,800
17, 707
12, 872
46,041
38,847
12,589
18,584
3,862
20,764
21,103
35,349
2,566
35,757
7,801
48,061
18,663
12,890
19,094
10,304
25,924
37,697
132,935
35,819
11,403
10,359
17,169
13,362
45,207
41,850
14,051
31,599
19,870
4,136
25,513
25,559
31,771
3,480
34,899
8.523
49, 856
19,879
14, 917
18, 772
10,005
December
26,382
38,896
131,207
33,998
13,745
9,456
18, 929
13,016
43,176
40,004
13,718
33,696
18.421
4,142
23,838
26,239
33,391
4,139
32,767
8,352
48,084
19,264
17,013
18,564
10,903-
19
FEDERAL RESERVE BULLETIN
JANUARY, 1928
COMMODITY PRICES, SECURITY PRICES, AND SECURITY ISSUES
WHOLESALE PRICES, BY COMMODITY GROUPS 1
[1926=100]
All com- Farm
modities products
Month
September
October
November
December
January
February-_
March
April
May
June
July
August
September
October...
November
1926
Hides
Metals
Houseand
Textile Fuel and
and
Building Chemi- furnish- Miscelleather products lighting
metal materials cals and ing goods laneous
drugs
products
products
Foods
99.7
99.4
98.4
97.9
_
_
99.8
100.8
100.5
100.7
98.8
101.0
100.4
100.4
98.9
97.7
96.3
95.2
101.5
101.3
102.5
99.4
101.2
101.0
100.8
100.4
99.5
99.5
100.1
99.2
100.2
99.1
98.6
98.8
99.5
99.4
99.1
9a 8
94.2
93.4
90.8
89.9
96.6
95.9
94.5
93.7
93.7
93.8
94.1
95.2
96.5
97.0
96.7
1927
99.3
97.9
94.7
94.9
96.5
95.4
94.2
94.3
96.3
96.5
97.6
102.2
105.9
105.0
104.3
96.9
95.9
94.5
94.6
94.4
94.4
93.9
94.2
96.5
100.0
101.5
101.0
100.2
100.5
101.7
103.7
107.3
111.7
111.7
112.5
113.0
114.3
94.3
94.6
94.0
94.2
93.9
94.3
94.3
96.2
98.5
98.4
97.5
97.7
95.8
90.0
84.9
83.9
84.2
84.2
84.1
84.2
83.8
82.9
98.8
98.0
98.2
97.8
98.6
98.2
97.7
98.0
97.6
97.1
97.0
97.5
96.2
95.3
95.0
95.1
94.6
93.7
92.9
92.1
91.6
90.2
97.6
97.6
97.1
97.8
95.4
95.8
95.3
95.4
96.4
97.1
97.4
97.9
97.9
97.8
97.8
97.8
98.0
98.0
98.6
98.6
98.5
98.9
90.3
90.0
90.9
91.3
91.3
90.2
89.3
89.9
89.2
88.3
88.3
» New index of Bureau of Labor Statistics.
See BULLETIN for October, 1927, pp. 696-699.
PRICES OF FARM PRODUCTS AT T H E FARM i
[August, 1909-July, 1914 -1001
Coinmon stocksi
Dairy Cotton
Unand
Meat
and
ani- poultry cotton- classified
mals prodseed
ucts
I
Grains i
i
;
Fruit
and
vegetables
136
136
142
137
148
148
142
140
139
144
157
161
134
94
88
81 i
140 |
142 |
140
147
158
201
195
172
145
138
136
141
140
143
144
143
137
129
131
136
142
145
152
142
133
133
130
124
125
127
137
146
153
158
85
94
102
101
113
119
124
136
179
169
162
151
Bonds:
Average
price
of 40
issues
modities
1926
September.
October
November .
December..
134
130
130
127
121
123 |
121 |
120 !
1927
January
February...
March
April
May
June__
July
August
September..
October....
November..
December..
126
127
126
125
126
130
130
132
140
139
137
137
120
122
121
119
127
140
139
138
134
128
120
123
i
i
i
!
!
141
138
197
Industrial
stocks »
31
railroad
stocks»
1926—November
December
30
Month
SECURITY P R I C E S
157.5
161.7
132.4
135.2
150.2
153.9
95.66
96.05
1927—January
February __
March
April
May
June
July
August
September .
October
November
December
Week endingDec. 3
Dec. 10
Dec. 17
Dec. 24...
Dec. 31
158.4
163.0
165.7
165.1
174.5
175.4
179.0
189.0
197.0
19.7.5
202.1
208.7
136.7
142.1
143.1
147.4
150.5
151.9
153.9
156.0
157.1
158.9
158.6
160.6
153.5
156.9
159.0
166.2
167.5
168.5
171.7
179.3
191.1
186.2
189.4
194.6
96.43
96.44
96.63
07.24
97.55
97.06
97.03
97.76
98.00
98.62
98.98
99.25
205.6
204.9
209.3
211.2
212.6
162.5
159.7
160.5
160.9
159.5
193.0
191.7
195.0
196.5
197.0
99.21
99.26
99.28
99.22
99.27
Month or week
Total,
229
stocks
1
Index numbers of Standard Statistics Co.
» Average of 1917-1921 prices=100.
' Average of yearly high and low prices, 1913-1922—100.
i Index numbers of Department of Agriculture.
DOMESTIC CAPITAL ISSUES
fin millions of dollars!
FOREIGN CAPITAL ISSUES
[In millions of dollars]
January-November—
November,
1927
Class of issue
Refunding
1927
1926
379.5
206.9 5,483.8 1,704.7 4,710.8
835.5
278.0
204.8 4,084.3 1,586. 5 3,449.1
778.4
156.8
14.2
107.0
.5
101.0
200.2 2,647.3 1,287. 5 2,205.3
72.7
236.0
200. 6
4.6 1,236. 2 226.4 1,007. 6
86.9
92.8
91.3
2.1 1, 312. 7
25.3 1,178. 7
617.0
39.0
122.4
40.2
16.8
New
Total.
C orporate issues. _
Bonds and notesLong-term
Short-term
Stocks
Farm loan issues
Municipal issues
Total new and
refunding
586.4
7,188. 6
5,546. 4
1927
1926
Gov- Corpo- Gov- Corpo-I Gov- Corpoernernernrate
ment rate ment rate I ment
Refunding
Refunding
New
j
Class of issue
New
Total
January-November
November,
1927
New issues
Europe
Canada a n d N e w foundland
Latin America
United States insular
possessions
Miscellaneous
Refunding issues.
Total Government
and corporate
59.4
123.5
53.1
24.7
42.9
17.3
5.8
7.6
13.1
5.3
2.0
4.0
53.9
~6.T
182.9
922.3 i 617.8 640.9
528.2
810.9 i 506.0
307.6 , 236.8
413.4
183.7
534.5
222.7
119.0 93.5 i 66.5
76.7 ! 213.4
258.4
12.2
10.7 !; 19.3
19.7
114.8 79.6
111.4 j 111.8 106.4
1,416.7
149.3
30.3
2.4
47.7
114.8
1,169. 1
20
FEDERAL RESERVE BULLETIN
JANUARY, 1928
INDUSTRIAL PRODUCTION
f Index numbers, adjusted for seasonal variations. 1923-1925 average -1001
Index of Industrial Production
Minerals
Manufactures
Total
Month
1922
1923
1924
1925
1926
1927
1922
1923
1924
1925
1926
1927
1922
1923
1924
1925
1926
100
102
100
95
89
85
105
105
104
103
103
102
103
103
102
105
106
108
106
107
107
107
106
107
107
111
112
111
108
105
107
109
111
108
111
108
106
107
105
103
73
75
78
81
86
90
91
87
89
94
98
100
100
100
103
107
106
104
102
100
101
98
96
99
102
101
95
88
84
82
84
88
94
97
100
100
100
103
107
107
105
103
102
100
99
97
96
109
108
108
107
107
107
107
111
112
110
106
103
105
107
110
109
111
108
106
107
105
102
77
85
92
53
54
59
67
62
81
90
94
100
101
100
103
109
108
108
111
110
98
104
105
102
104
99
92
93
92
92
92
97
95
97
101
106
106
106
103
103
102
103
102
104
107
109
110
104
100
96
98
104
101
104
108
90
91
94
92
96
106
106
104
106
107
109
111
115
118
119
101
95
87
101
94
105
108
74
105
99
107
January
February..
March
April
May
June
July
August
September.
October
November.
December..
Annual index.
85
94
94
97
101
104 !
108
100
96
1927
116
118
118
104
108
104
100
106
105
105
101
Index of Production of Manufactures, by Groups
Month
Total
Iron
and
steel
1926
August
September...
October
November
December
111
112
110
106
103
120
117
115
104
102
1927
Tanuary
February
March
April
;
May
fune
July..
August
September
October
November
105
107
110
109
111
108
106
107
105
102
105
113
114
115
116
104
102
101
• 97
93
87
105 i
109 I
110 i
110
110
108
108
114
112
116
121
118
119
118
113
111
Paper
Leather Cement, Non- I Petro- Rubber Tobacco
Autoand
brick, ferrous I leum
and
manu*
Lumber [ mobiles
tires
i
shoes and glass metals refining
printing
factures
Food
products
Textiles
|
:
j
\
'
i
|
102
103
102
103 !
102
96
97
93
94
94
115
116
117
116
113
95
99
97
95
!
i
!
i
128
124
105
88
65
101
105
106
99
100
118
117
114
107
95
110
112
112
119
118
128
128
129
133 |
135 !
128
132
126
108
112
113
113
116
115
111
112
113
113
114
113
112
113
111
113
113
111
96
95
91
88
95
93
95
95
99
95
91
j
i
!
j
95
99
104
104
105
93
83
88
81
71
47
99
102
98
98 !
100
105
113
106
112
109
101
107
119
109
108
109
111
115
113
108
106
116
112
108
112
111
108
106
108
107
106
106
135
134
135
134
132
134
136
136
139
142
140
118 !
117
123
131
127
131
124
119
113
116
113
114
113
116
122
122
116
109
119
123
121
122
!
i
!
i
|
Index of Production of Minerals, by Products
Month
Total
August
September
October
November
December
January
February
March
April
May
June
July
August
September
October
November
Bituminous coal
Iron ore
Anthracite Crude petroleum
shipments
coal
Copper
Zinc
Lead
Silver
1926
109
111
115
118
119
107
109
112
124
121
118
127
125
114
115
105
106
113
117
121
116
118
118
104
108
104
100
106
105
105
101
119
125
131
87
94
91
87
92
92
90
85
101
95
88
108
117
102
75
107
100
107
106
120
123
123
119
120
120
124
123
124
124
124
108
113
113
116
112
126
116
132
97
120
121
121
120
119
116
117
118
116
122
93
107
114
111
100
106
107
105
101
101
104
102
105
113
113
114
110
108
114
109
114
111
110
107
113
112
115
120
113
112
116
112
111
105
110
97
95
90
90
90
93
94
94
90
91
100
96
96
1927
_.
_
120
101
99
99
87
95
49
i
!
I
!
NOTE —These tables contain, for certain months, index numbers of industrial production, together with group indexes for important components. The combined index of industrial production is computed from figures for 60 statistical series, 52 of manufactures, and 8 of minerals.
Adjustments have been made in the different industries for the varying number of working days in each month and for customary seasonal variations, and the individual products and industries have been weighted in accordance with their relative importance. The sources of data and
methods of construction were described and monthly indexes for the above groups were published in the BULLETINS for February and March, 1927.
JANUARY,
21
FEDERAL RESERVE BULLETIN
1928
PRODUCTION OF MANUFACTURES, BY INDIVIDUAL LINES
Novem- October,
1927
ber, 1927
Iron and steel:
Pig iron
Steel ingots
Textiles:
Cotton consumption
WoolConsumption
Machinery activity 1
Carpet and rug loom activity 1.
SilkDeliveries
Loom activity 1
Food products:
Slaughtering and meat packingHogs
Cattle
Calves
Sheep
Flour
Sugar meltings
Paper and printing:
Wood pulp and paperNewsprint
Book paper
Fine paper
Wrapping paper
Paper board
Wood pulp, mechanical
_
Wood pulp, chemical
Paper boxes
Newsprint consumption
Lumber:
Lumber, cut
Flooring
_
Transportation equipment:
Automobiles. _
Locomotives
Shipbuilding
1
! Novem- ; October,
i ber, 1927 |
1927
November, 1926
90
87
110
104
118
120
110
90
92
91
95
93
100
92
139
103
140
107
141
114
80
100
104
116
97
108
81
93
96
115
96
118
78
107
109
114
97
127
94
108
113
98
116
93
103
114
127
91 |
107 |
115 I
105
lie ;
94 :
107
127;
123 !
113
111
118
103
115
116
111
125
125
92
91
102
94
114
47
33
176
71
49
117
Leather and products:
Leather, tanning—
Sole leather^
Upper leather—
Cattle
Calfandkip
_
Goat and kid..
Boots and shoes
Stone, clay, and glass:
Cement
Brick—
Face brick
Paving brick
Plate glass.
Nonferrous metals:
Copper..
Lead
Zinc
Tini
Chemicals and allied products:
Petroleum refining—
Gasoline 1
Kerosene
Fuel oil i
Lubricating oil i._
Coke production—
By-products
_
Beehive
Rubber tires and tubes:
Tires, pneumatic
Inner tubes.
__
Tobacco products:
Cigars.
Cigarettes
_
Manufactured tobacco and snuff
j
i
;
i
!
:
!
\
|
I
|
i
!
j
!
:
!
J
i
!
i
J
.!
j
j
i
j
|
i
!
i
i
\
|
J
Novem-1
ber, 1926
93
99
88
69
108;
126 j
98 |
!
111
81
114
128
111
102
89
117
101
115
109
104
107
96
106
105
68
118
106
110
107
100
106
105
110
104
123
117
120
104
160
93
123
107
162
94
124
115
145
103
119
118
111
34
122
40
119
84
117
83
121
85
111
85
103
140
96
108
135
95
104
127
94
105
84
168
Without seasonal adjustment.
FACTORY EMPLOYMENT AND PAY ROLLS
tfndex numbers without seasonal adjustment.
Metals and
products
Month
Total I;"
Employment:
1926—October... 96.3
November- 05.2
December— 94.1
92.4
1927—January
February._ 93.6
93.9
March
93.2
April.
92.6
May
92.4
June
90.7
July
91.2
August
September. 91.9
October . ._ 91.7
November. 90.1
Pay rolls:
112.4
1926—October
November..; 108.8
December.. 107.8
1927—January _ . . I 101.9
February ! 108.5
March
' 109.9
108.4
April
108.1
May
105.8
June
101.0
July
104.4
August
September. 103. 8
October... 105.1
November. 101.2
Textiles and prodncL:
lion
Group ! and
steel
Group Fabrics Products
93.3
91.7
90.5
88.9
90.1
90.6
89.9
88.7
87.8
85.7
85.4
85.1
84.4
82.8
102.6
99.3
99.3
94.1
99.1
100.7
99.5
96.8
95.2
87.4
90.4
;
!
I
!
|
!
'
!
;
6.0 I
93.0
91.5
90.4
88.7
90.1
90.3
89.6
88.4
87.5
85.4
85.0
84.7
84.0
82.3
93.7
93.6
95.0
95.2
96.9
96.6
95.1
93.6
93.1
91.0
92.3
93.9
94.5
94.2
102.2
99.0
99.1
93.8
98.7
100.1
99.1
96.2
94.7
86.7
89.8
87.3
88.2
85.2
105.3
102.0
106.3
105.3
111.0
110.8
105.1
103.3
102.8
9.9.1
102.7
104.8
106. 9
102. 9
!
j
!
!
i
!
!
;
95.9
97.0
97.5
97.6
98.5
98.3
97.5
96.5
96.3
94.8
95.6
96. 5
•7.0
97.2
108.2
107.3
109.8
107.6
111.7
111.3
108.1
107.6
107.0
102.8
105.8
107. 3
108.9
106. 9
90.8
,
i
!
j
Lumber
and
products
Monthly average, 1919=100]
Foods Leather Stone,
and
and
clay,
prod- prodand
ucts
ucts
glass
Railroad
Autoand
vehi- mobiles printing
cles
89.4
91.9
92.2
94.7
94.5
92.0
89.9
88.9
86.2
88.2
90.5
91.4
90.3
100.2
99.4
97.3
92.9
91.8
91.2
91.0
91.6
91.8
91.2
92.4
93.0
92.4
91.2
83.9
83.0
82.3
79.8
79.2
78.0
78.4
78.5
78.9
78.2
76.7
76. 1
75.5
73.4
101.7
95.5
102.0
102.6
110.3
110.3
101.4
98.1
97.6
94.6
98.9
101.9
104. 3
98.1
117.8
116.4
112.9
101.6
103.4
104.6
103.2
105.3
104.8
101. 1
105.8
107.3
109.1
106.3
93.4
151.3
92.1 I 131.3
111.5
91.9
94.0
84.6
140.2
89.3
153.4
87.0
157.7
88.0
158.7
89.8
131.4
87.9
125.2
83.0
136.3
85.4
128.7
81.3
133.6
83. 6
117.6
82.2
119.9
110.2
104.0
104.2
117.3
122.4
123.4
123.7
117.2
109.9 !
114.3
111.0 I
109. 9
100.7
Tobacco
products
Cheminolo
icais
and
products
109.8
90.4
90.6
126.6
82.7
111.1 |
110.7
108.8 i
109.0 !
109.0
108.1 !
107.3 !
106.9
106.3 I
106.9
107.8
108.6
109. 7 ,
88.6
86.7
85.1
84.9
84.1
83.1
83.7
87.6
86.7
85.8
S8.7
89.2
87.7
89.0
87.1
88.5
88.9
88.6
84.2
82.6
82.2
85.3
88.2
88.5
86.5
8.1.5
123.9
117.9
109.6
110,1
115.9
121.5
124.0
124.2
119.5
120.2
119. 3
116.2
114.7
82.3
81.8
73.5
79.0
78.9
77.3
78.2
80.3
80.3
74.4
83. 5
85.3
84.6
78.2
78.2
- 77.8
77.6
77. &
78.2
78.1
75.3
75.9
75.0
75.3
76.9
77.8
78.5
105.6
102.9
102.1
99.3
99.3
99.1
98.0
100.7
104.6
103.1
101.7
104.4
104.8
103.0
97.3
90.4
88.5
90.0
95.6
93.2
87.0
84.4
85.1
90.2
97.5
95.2
88.5
76.8
159.5
154.6
147.6
129.5
136.8
144.9
151.6
157.6
154. 5
143.7
149.0
145.7
145.0
140.8
91.3
90.6
88.4
76.2
79.2
80.9
77.9
83.6
86.7
85.7
79.7
90.5
91.3
90.5
109.0
108. 6
109.1
107.0
108.9
111.7
109.9
107.0
109.1
103.6
105.2
105. 7
110.0
109.7
151.0
152.3
154.7
150.3
150.8
152.2
150.7
150.3
148.2
145.4
147.2
148.9
151.0
149.0
!
i
!
i
NOTE.—This table contains for certain months general index numbers of employment and pay rolls, together with group indexes for important
industrial components. The general index is a weighted average of relatives for 34 individual industries. The method of construction was described in detail and indexes for the above groups since January, 1919. were published in the BULLETIN for May, 1925. See also p. 668 of BULLETIN
for September, 1925, for certain revisions.
22
FEDERAL RESERVE BULLETIN
JANUARY,
1928
BUILDING
BUILDING CONTRACTS AWARDED '
[Index numbers based on value of contracts. Monthly average, 1923-1925=100]
With seasonal adjustment
Without seasonal adjustment
Month
January. _
February
March _
April... .*.
May
June. .
July
August
September
October
November..
December
1924
1923
1922
61
71
94
101
109
93
79
75
73
91
80
76
48
52
85
102
105
100
102
93
79
73
71
62
1926
1925
75
76
78
109
121
108
101
111
99
146
139
134
133
126
146
137
126
119
131
76
120
138
124
137
133
149
138
129
116
129
87
89
87
103
95
83
1927
1922
85
97
70
94
96
151
147
135
154
130
135
127
137
114
116
1924
1923
70
83
82
85
82
92
86
81
71
82
77
87
79
89
81
76
72
76
88
90
90
1925
1926
101
104
107
112
115
125
128
135
135
129
127
138
146
136
128
120
125
125
124
129
130
126
130
136
Minneapolis
Kansas
City
101
101
99
96
95
91
84
85
90
100
103
94
1927
123
131
131
128
126
144
12?
US
121
137
125
121
BUILDING CONTRACTS AWARDED, BY FEDERAL RESERVE DISTRICTS i
[Value of contracts in thousands of dollars]
I!
Month
Federal Reserve District
Total
Boston
New
York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago St. Louis
Dallas
1926
September..
October
November..
December...
562,371
515,727
487,013
537,396
42,427
29,297
34,584
31,570
151,251
127,176
118,757
228,021
39,189
28,843
28,609
31,018
55,226
55,236
38,733
41,795
38,704
35,250
44,318
37,194
34,979
40,084
110,760
108,944
114,456
92,113
35,187
40,981
30,586
22,504
12,955 •
13,712 I
9,752
8,588
18,445
22,935
11,979
11,520
21,033
18,374
15,155
19,439
1927
January
February...
March
April
May.
June
July
August
September..
October
November..
384,455
393, 583
620,738
604,391
552,349
632,478
534,390
552, 488
521,611
562,816
15,848
20,298
42,806
40, 649
39,023
33,569
29,658
37,461
32,863
27,486
40, 070
116,973
105,958
157,873
168,170
141,177
175,991
157,597
143,088
107, 969
168,641
131,414
32,353
33,088
52,351
52,925
36,172
47,632
37, 578
45, 433
43,237
32,911
28, 702
48,509
45,741
62,733
74,366
72,782
72,266
54,707
71,494
61, 651
51,273
41, 639
27,776
24,944
34,694
31,192
39,736
35,502
34,241
31,813
57,464
29,553
24,811
32,454
31,928
45,921
31,004
31,100
31,188
28,093
28,176
30,917
26,023
39,151
56,372
69,698
121,426
112,070
103,226
138,187
105,070
107, 554
104,015
138,662
82,794
21,633 |
25,697 I
42,704 i
34, 888
31,344
44,171
4,337
5,548
16,107
13,944
12,999
14,134
15, 521
14, 463
10,319
12,166
8,526
11,419
16,173
16,342
22,644
21,528
17,598
17,203
19,061
22,253
19,317
16, 516
16,881
14,510
27,781
22,539
23,262
22,240
22,517
19,811
18, 350
15,379
24,977
BUILDING
Month
1926
September.
October....
November.
December.
1927
January
February..
March
April
May
June
July
August
September.
October—
November.
CONTRACTS AWARDED, BY TYPES
BUILDING i
[Value of contracts in thousands of dollars]
Residential
Indus- Comtrial mercial
OF
Public
works Educa- All
and
public tional other
utilities
225,516
226,794
229,821
203,966
49,113
46,465
64,781
51,181
97,378
63,601
59,657
75,196
98,167
103,757
50,129
120,290
34,531
23,567
34,572
22,178
57,666
51,543
48,053
64,585
167,866
163,088
250,078
267,417
219,980
239,814
186,935
209,456
202,877
243,562
214,963
27,875
41,247
48,077
44,602
44,889
33,879
30,303
41,039
48,546
50, 712
52,890
80,116
67,896
113,766
80,754
72,541
88,122
83,010
76, 915
59,617
79,720
43, 521
58,955
52,180
106,827
116,264
111,368
151,399
143,916
119,741
126,230
108,210
76,089
17,012
22,046
36,522
35, 678
34,545
42,122
36,434
41,035
29,244
30,170
31,741
32,631
47,126
65,468
59, 676
69,026
77,142
53,792
64,302
55,097
50,442
47,189
BUILDING
32,205
34,134
32,573 !
41,405 !
27,793 I
PERMITS ISSUED, BY FEDERAL RESERVE
DISTRICTS
[Value of permits in thousands of dollars]
Federal reserve district
United States.
Number Novem- October, Novem1927
of cities ber, 1927
ber, 1926
14
22
14
12
Richmond
Atlanta
Chicago
St. Louis
15
15
19
5
Minneapolis..
Kansas City..
Dallas
_.
San Francisco
232,308
250,681
j
!
i
i
8,318
84,423
12,021
16,893
9,605
99,158
12,611
15,822
9,033
7, 851
42,983
8,960
(
6, 574
8,401
48,348
5,709
10,911
9,463
50,090
5,782
2,427
6,572
6,507
35,256
|
!
I
!
2,593
9,361
5,773
23,894
3,542
5,519
3,888
24,290
168 | 251,643
Boston...
New Y o r k . . . .
Philadelphia..
Cleveland
|
!
;
i
14,064
92,495
11,265
14,230
i Figures for building contracts awarded are for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. Adjusted
indexes by months from 1910 to date given in the BULLETIN for August, 1927, p. 563.
23
FEDEEAL RESERVE BULLETIN
JANUARY, 1928
COMMODITY MOVEMENTS
FREIGHT-CAR LOADINGS, BY LINES
[Index numbers, adjusted for seasonal variations. 1923-1926=1001
Grain
and
grain
products
Total
Month
1926—October
November
December
1927—January
February
March
April
May
June
July
August
September
October.
November
Livestock
104
93
99
96
102
98
97
100
105
97
98
108
106
94
97
90
86
88
87
92
92
95
93
89
91
87
94
87
109
108
106
105
109
109
108
107
104
101
104
104
101
96
Merchandise
Forest
prod- 1.0.1.
and
ucts
miscellaneous
Coal
100
94
90
94
95
91
90
93
91
94
95
95
93
87
113
128
124
114
121
122
107
103
96
89
102
102
94
87
110
106
106
108
109
110
110
108
108
107
109
108
106
102
AGRICULTURAL MOVEMENTS
[Inde* numbers, without seasonal adjustment. 1919=1001
AniToVegeLive- mal
Total stock prod- Grains Cot- tables Fruits bacco
ton
ucts
Month
1926—October...
November..
December.1927—January
February. >.
March
April
May
June.
July
August
September..
October
November..
113
107
95
99
81
91
82
95
91
79
93
87
111
105
190
165
138
115
104
103
85
94
94
95
123
165
185
149
96
117
126
86
95
118
137
161
169
149
129
102
95
110
125
99
82
86
84
71
50
63
84
135
195
207
182
122
375
343
251
152
118
117
74
58
32
13
80
205
284
244
251
135
98
118
113
146
146
140
162
133
119
233
266
145
261
435
286
204
344
104
404
99
383
97
212
100
31
128
8
174
1
127
140
142 """50
267
255
357
323
154
328
For description and early figures see BULLETIN for March, 1924, and
for certain revisions see p. 739 of the BULLETIN for October, 1925.
For description and early figures see p. 562 of August BULLETIN.
WHOLESALE TRADE
INDEX OF WHOLESALE DISTRIBUTION—NINE LINES OF TRADE
[1923-1925 average=100]
Sales without seasonal adjustment
Sales with seasonal adjustment
Month
1923
1923
1922
January
February
,
March
April
May
June
July
August
September
October
November
December
Annual average.
79
81
85
83
89
91
86
91
91
93
97
97
102
100
104
100
103
102
101
103
99
103
100
95
1924
j
1925
103
102 : I
94
99 i
95 :
91 !
93
95
101 I
99 i
99 j
101
102 '
101 !
100 i
ioo ;
99 j
100
102
101
100 ; !
105
100 !
1923
1926 i 1927
102
101
100
97
99
99
97
97
100
94
98
95
94
95 .
96
94
95
93 |
95
100
96
91
95
"I"
93
96
114
97
94
92
92
115
115
123
100
82
101
72
77
93
80
82
84
79
101
107
110
98
83
89
1925
1924
94
98
102
96
87
82
86
105
118
118
97
88
98
1927
1926
94
97
107
94
91
91
91
107
117
111
97
84
98
93
97
109
98
90
91
94
113
117
124
99
89
101
87
91
103
90
87
87
88
111
112
106
93
SALES I N INDIVIDUAL L I N E S O F T R A D E
Without seasonal adjustment
With seasonal adjustment
WomWomMonth i
i Gro- Meats Dry Men's en's Boots Hard- Drugs Fur- Gro- Meats D r y Men s en's Boots Hard- Drugs Furand
clothand
clothniture
i ceries
niture ceries
goods ing cloth- shoes ware
goods ing cloth- shoes ware
ing
ing
!
1926 !
September
October...'
November 1
December.
100
95
96
96
117
110
116
113
97
90
99
89
97
83
82
87
70
69
66
66
103
90
99
94
101
97
102
100
109
108
111
107
103
101
106
100
109
107
102
94
125
123
112
106
122
104
98
71
148
105
61
44
101
111
45
42
126
113
104
76
109
109
100
93
116
125
112
100
117
120
111
94
1927 j
January...
February.
March
i
April
May
June
July
August
September;
October...
November i
93
93
96
95
97
98
91
97
94
90
94
113
112
108
111
109
104
102
109
109
109
105
83
87
90
86
87
88
88
102
91
86
90
88
101
105
90
90
94
94
105
96
84
89
77
75
67
68
69
62
79
72
66
54
67
112
108
97
94
110
90
134
111
104
91
105
92
93
98
94
91
92
92
97
99
94
100
104
103
106
106
104
106
105
112
114
111
112
100
96
96
95
93
100
104
106
104
96
99
86
81
94
90
95
101
92
97
102
102
100
113
107
104
104
109
106
104
111
117
122
101
78
88
95
76
76
78
81
125
113
99
89
68
128
144
88
54
48
82
172
146
105
63
71
95
108
64
39
27
43
98
95
87
45
92
85
111
100
111
85
107
122
127
114
110
82
82
102
96
93
96
90
98
106
105
98
102
94
117
108
98
99
100
110
122
128
113
88
96
100
96
88
88
85
109
118
114
104
NOTE.—The basic data used and the methods of construction of the index of wholesale distribution were described and monthly indexes
from January, 1919, to October, 1927, were published in the BULLETIN for December, 1927, pp. 817-828.
24
FEDERAL RESERVE BULLETIN
JANUARY, 192b
RETAIL TRADE
SALES OF D E P A R T M E N T S T O R E S , MAIL-ORDER HOUSES, AND CHAIN STORES
[Index numbers.* Average monthly sales 1919=100]
Sales with seasonal adjustment
Sales without seasonal adjustment
Month
1926
June
July
August.__
SeptemberOctober _.
November.
December.
1927
January
February—
March
April
May
June
July
August
September.
October. _.
November.
De- Mailpart- order
ment houses Gro- 5-andstores (4)
cery 10-cent Drug
(9)
(359)
(27)
(5)
Chains
Cigar
(3)
De- Mailpart- order
ment houses Gro- 5-andShoe Music Candy stores (4)
cery 10-cent Drug
(9)
(6)
(4)
(5)
(359)
(27)
(5)
Chains
Cigar
(3)
Shoe Music Candy
(6)
(4)
(5)
130
99
105
131
158
156
234
113
97
98
121
151
153
166
309
317
296
307
334
347
373
204
206
204
211
257
247
466
184
195
193
192
206
198
261
152
155
148
153
162
150
222
153
145
122
142
158
150
215
118
108
121
137
151
146
223
204
210
194
218
227
232
303
130
133
134
144
139
138
146
133
131
130
128
116
123
139
314
329
310
323
324
344
357
222
227
215
227
237
237
252
187
194
192
195
202
210
215
156
157
151
152
155
151
164
144
159
155
148
140
138
164
149
145
136
137
125
117
118
218
214
193
221
221
244
208
114
107
129
143
132
130
97
113
130
151
156
108
107
132
128
106
114
100
113
126
158
160
347
332
392
385
383
399
373
382
384
426
422
177
191
213
244
224
224
221
237
232
278
265
209
201
224
223
206
210
217
215
210
234
223
134
137
153
157
157
151
153
147
146
154
146
106
110
125
198
143
155
145
132
140
157
155
94
98
108
104
88
87
80
98
126
128
128
178
194
216
257
216
215
211
208
223
233
235
130
139
129
140
127
130
130
144
143
133
139
110
118
113
125
119
135
135
150
134
122
128
345
346
361
380
382
405
388
401
404
414
419
243
256
222
261
236
244
243
249
250
257
254
217
222
222
230
209
213
214
215
214
229
237
154
162
158
163
154
155
154
150
146
147
148
140
164
126
170
124
145
159
168
146
139
142
114
119
120
122
106
109
107
110
125
106
103
212
230
213
257
224
229
215
207
226
227
247
i For description of retail trade indexes see BULLETINS for January and March, 1924. Index of sales of grocery chains revised in February, 1925;
comparable figures since January, 1919, obtainable from Division of Research and Statistics, Federal Reserve Board.
DEPARTMENT STORE SALES AND STOCKS, BY FEDERAL RESERVE DISTRICTS
[Index numbers
Monthly average 1919=100]
Federal Reserve District
United
States
New
York
Boston
Sales (unadjusted):
1926—September..
October
November..
1927—September..
October
November..
131
158
156
130
151
156
122
154
157
124
145
156
Sales (adjusted):
1926—September..
October
November..
1927—September..
October
November. _
144
139
138
143
133
139
135
139
143
137
131
142
Stocks (unadjusted):
1926—September..
October
November..
1927—September..
October
November.-
142
153
156
143
152
154
Stocks (adjusted):
1926—September. _
October
November..
1927—September..
October
November..
132 !
137
138
133
136
137
Philadelphia
Richmond
Cleveland
Atlanta
Chicago
110
154
155
109
141
149
92
125
129
101
129
124
164
171
169
160
165
176
103
109
102
97
109
101
129
135 !
133
128
123
128
103
104
112
113
108
107
172 !
156
153
168
150
159
122
128
126
132
136
111
114
114
116
118
122
136
177
170
138
168
176
116
160
166
110
146
160
155
148
147
157
140
152
143 I
125
136
141
127
136
139
142
152
157
142
151
153
180
221
216
194
209
209
140 j
145 !
135
146
149
132
143
147
118
121
122
120
121
120
133
137
138
133
136
135
168
198
194
181
188
188
126
129
133
125
126
128
122
126
130
119
123
129
j
I
!
!
!
139
128
136
128
123
123
152
147
118
142
139
:
:
:
!
j
!
!
I
138 :
138 i
135 !
!
133
129
128 •
136 I
144 !
150 |
134 I
San
Dallas I Francisco
|
I
Minneapolis
114
134
126
109
131
124
158
169
168
161
171
176
102 !
96 :
95,
97 '
97 !!
94
114
114
110
109
112 I
109 !
168
155
166
172
157
174
163
175
177
165 :
176
179
103
105
105
99
103
103
126
129
126
115
118
117
143
151
156
146
156
160
152
156 ,
157 !
155 i
99
97
96
95
95
94
112
114
113
103
104
105
136
140
143
139
144
146
157 •
159 ;
i
i
i
;
:
NOTE.—Number of reporting firms included in sales and stocks indexes, respectively, for department stores are as follows, by Federal reserve
districts: United States, 359-314; Boston, 24-24; New York, 63-63; Philadelphia, 22-13; Cleveland, 54-52; Richmond, 23-19; Atlanta, 35-22; Chicago,
63-51; Minneapolis, 23-22; Dallas, 21-19; San Francisco, 31-29.
25
FEDERAL RESERVE BULLETIN
JA.MARV, 1928
BANK SUSPENSIONS AND COMMERCIAL FAILURES
BANK SUSPENSIONS, BY CLASS OF BANK
COMMERCIAL FAILURES, BY CLASS OF ENTERPRISE i
[Amounts in thousands of dollars]
[Amounts in thousands of dollars]
Member
banks
All banks
Nonmember
banks
Number
Manu-: T d i Agents,!
ManuTotal factur-j ^m g r o k e r s , Total factur- Trad"b
ing
ing i
etc.
ing
Num-; Total Num-! Total Num- Total
! ber deposits' ber deposits ber deposits
1926
JanuaryFebruary
March
April
May
June
July
August
September..
October
November..
December...
65 13,384 |
52 i 11,763
5 1 i 10,249
56 ! 12,512
68 ! 16, 324
77 i 34, 229
140 48, 618
52 10, 001
37 12,050
88 18, 209
154 45,983
116 39,166
Total..
11! 3,992
10
6
6
i
|
710
10
16
5
9
:
8
19
33
;
54
42
45
50
58
61
135
43
29
69
121
89
2, 861
27
3,534
4,234
5,318
1,637
2.127
4,317
6,280
19,389
14,413
9,392
8,902
9,539
8,978
12,090
28,911
46,981
7,874
7,733
11,929
26, 594
24, 753
796 203, 676
956 272, 488 ; 160 68,812
192C
January
February
March
April
May
June
July
:.::
August
September...
October
November
December
Total
January..
February..
March
Ap'il
Mty
June
July
August
September.
October
November.
133
82
75
48
47
41
38
27
36
44
43
38,298
32.918
44, 8! 3
12.492
14.185
12,072
14,012
20,111
9, 206
11,566
12,139
614 221,892
Total, 11 m o n t h s
;
27
1
6
16
' 10
1
1
!
9
2
1
5
i
6
9
11,836
8, 895
8, 019 ,
5.471
7,172 1
5, 521 :
2, 038 1
9, 439 i
1,315
3. (.i22 1
3, 39(5 I
!117 °
106
66
59
38
36
32
36
22
30
£5
37
68, 004 i 497
i
BANK SUSPENSIONS i IN NOVEMBER
26,462
24, 023
35, 894
7,021
7.013
6, 551
11,374
10. fi72
7,891
7,644
8, 743
153, 288
1927 BY DISTRICTS
January
February
March
April
May
June
July...
August
September
October
November
2,296
1,801
1,984
1,957
1,730
1, 70Si
1, 605|
,
1, 593,
i 1,437'
I 1,763'
1,830
2,069|
21, 773!
1927
1927
Liabilities
1,696!
1,282!
1,4241
1,378!
1, 216!
1,160i
1,122
l,07l|
958!
1,205!
1,285|
1,471,
90:
72
91!
85;
77
113
87
73
105
108
105
104
5, 395 15, 268'
43,651
34,176
30,623
38,487
33,543
29,408
29,680
28,130
29,990
33, 231
32,694
45,620
16,0941
10,8221
9, 862i
16, 734:
16,157!
10,092
11,167
12, 516
10,093
11,650
16,097
16,758
21,502
20,317
18,623
19,094
15, 710
15, 525
14,614
14,096
11, 243
15,874
14,158
20,579
1,110 409, 232 158,042,201,335
.!
_
|
2, 465!^
i 2,035 j:
2,143
1,968
.: 1,852'
1.833:
l.756 : :
1,708"
1,573
1, 787:
1, 864:
510
447
469
494
437
435
396
449
374;
450
440
494,
Total, 11 mos..20,984'
501
411
569
427
448
438
389
488
478
122
116
106
134
116
9
<
121
96
101
129
110
, 842:
, 508
., 468
.,342
,292
,310
., 1871 '
, 174|
,083
,170
,276
5.085.14., 6521
-
51,290
46, 941
57,891!
53, 156
37.785
34.465;
43,150
39, 196
32,786;
36.236
36,147
19, 996 24,530
10, 518 23,406
22,368 28,191
25, 278 22,308
13,8021 19,978
13,5871 17.856
16,743! 16,832
14, 9211 14.702
15,349 12,052
17,134! 14,657
12,786' 16,949
1,247 469.043 182,4821211,461
COMMERCIAL FAILURES, BY DISTRICTS i
[Amounts in thousands of dollars]
[Amounts in thousands of dollars]
I
All banks !
Federal reserve district |
ber
Boston
New York
Philadelphia.,.
Cleveland
Richmond
Atlanta.
Chicago.
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco..
Total
1
4
43
j Nonmember
banks
12,139 i
523
290
110
1,408
1,875
2,061
2,438
436
125
450
1,956
467
3,396
37
8,743
Banks closed to the public by order of supervisory authorities or by
the directors of the banks on account of financial difficulties.
2 Comprise 5 national banks with deposits of $1,521,000 and 1 State
member bank with deposits of $1,875,000.
3
Figures represent deposits for the latest available date prior to the
suspensions and are subject to revision when information for the dates
of 4
suspension becomes available.
Includes 2 banks for which deposit figures are not available.
Number
Federal reserve
district
Total Num-i Total Num- Total
dededeposits 3 ber i posits 3 ber posits 3
813
110
1,858
3,831
2,061
2,438
903
125
_
Member
banks 2
Boston
New York
Philadelphia.
Cleveland
Richmond...
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas..
San Francisco..
Total.
! Nov., | Oct.,
1927
1927
Liabilities
Nov., • Nov.,
1927
1926
113
68
322
38
353
221
363
72
134
120
92
237
69
83
105
95
239
1,864
1,787
1,830
185
350
72
147
137
99
210
175
276
51
175
104
101
264
63
i Figures furnished by R. G. Dun & Co.
5,590
8,368
1,487
3,449
2,556
1,205
3,183
3,477
1,153
2,194
818
2,668
36,147
Oct.,
1927
3,396
9,502
953
7,010
1,762
902
4,857
1,345
660
1,704
555
3,591
Nov.,
1926
3,426
5,932
2,620
2,775
3,068
1,875
5,633
807
721
778
1,543
3,516
32,694
26
FEDERAL RESERVE BULLETIN
JANUARY, 1928
DECEMBER CROP REPORT, BY FEDERAL RESERVE DISTRICTS
[District figures derived from revised estimates, by States, made by the Department of Agriculture]
[In thousands of units]
Corn (bushels)
Yield, 1926
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
_
Chicago
St. Louis
Minneapolis...
Kansas C i t y . .
Dallas
San Francisco.
Total-
10,140
28,125
51,468
197, 337
158,323
195, 055
910,389
393, 007
261, 995
308, 674
121,782
10, 558
Total wheat (bushels)
Winter wheat (bushels) Spring wheat (bushels)
Estimate
Estimate
Estimate
Estimate
Dec. 1,1927 Yield, 1926 Dec. 1,1927 Yield, 1926 Dec. 1,1927 Yield, 1926 Dec. 1,1927
8,493
26, 394
45,929
150, 323
163, 753
184,477
800, 566
342,426
304, 986
612,496
134,969
11,476
2,646,853 | 2,786,288 j
Oats (bushels)
160
5,771
21,450
46, 354
32, 516
8,579
69,715
54,976
161, 683
293, 519
34, 860
103, 226
92
7,216
18,761
33, 931
25, 233
4,528
66,035
42,210
273, 522
248, 270
18, 357
133, 536
5,609
21,450
46, 222
32, 516
8,579
66, 262
54, 574
10, 722
283,469
34, 596
63, 434
6,994
18, 651
33,817
25,233
4,528
60,731
41,701
19,718
235, 557
18, 214
87, 240
132
92
222
110
114
3,453
402
150,961
10,050
264
39, 792
5,304
509
253, 804
12,713
143
46,296
832, 809
871,691 j
627,433
552,384
205,376
319,307
Cotton (bales)
Tobacco (pounds)
Est mate Y e l d 9 2 6
E s t m a t e ' Y e l d IQOPJ E s t m a t e
Yield, 1926 Dec. i 1,1927 ; V il Q i/i ' 1IQOA Dec. i1,1927 j V il Q i/i' 1 9 2 6 Dec. i1,1927
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis. _.
Kansas City...
Dallas
San Francisco.
Total
9, 558
36,111
22, 319
92,130
28,482 i
21,571 i
490,757
59,031 j
229,006
143,132
86, 680 !
31,242 !
J 1,250,019!
1
9,215
36,636
24, 844
78, 362
26,104
14. 282
459,849
40,547 i
287,622
140,303
43, 807
33,435
1,195,006
Includes 17,000 bales grown in miscellaneous territory.
2,272
3,772
1,624
2,839
i 3, 349
2 2, 275
1,689 j
6,654 !
926
4,947 ;
178 :
241 j
17, 977
8
12,789
38,465 I
2,493
43,560 !
143,155 :
620,352
128,897
34,715
304,603
2.001
3,182
1,321,423
37, 280
1,249
44,880
92, 002
706,036
123,435
31,383
196, 722
1,897
2,948
1,227,832
160
162
White potatoes (bushels)
, 1926
\ Estimate
I Dec. 1,1927
45,968
32,763 !
21,507 |
18,183 I
30.451 i
10,593 i
59,417 i
13,003 !
53,259 I
26.452 I
2,819 |
41,708 !
356,123
Includes 7,000 bales grown in miscellaneous territory.
40,091
33,152
25,998
21,501
40, 798
12, 303
52,171
14,061
65,968
36,927
3,129
56,050
402,149
JANUARY,
1928
FEDERAL RESERVE BULLETIN
27
FOREIGN BANKING AND BUSINESS CONDITIONS
RETURN OF ITALY TO GOLD BASIS
On December 22, 1927, the Italian Government reestablished Italian currency on the gold
basis. A decree issued on that date made it
compulsory for the Banca d'ltalia to redeem
its notes on demand in gold coin or foreign
currencies of countries on a gold basis at the
rate of 3.67 lire in paper for 1 lira in gold.
The new lira has a fine gold content of 0.0791911
gramnes, and its mint parity is 5.26315 cents,
or approximately at the rate of 19 lire to
the dollar and 92.46 lire to the pound sterling.
In recent months the lira has fluctuated
between 18 and 18.5 lire per dollar, so that its
new parity will be somewhat lower than its
recent exchange value. The Bank of Italy
is required to retain gold or foreign gold
currency reserves amounting to at least 40
per cent of the total of outstanding note
circulation and all other demand liabilities.
The bank is authorized to revalue its reserves,
which have been carried on its books at the old
par of 5.18 to the dollar, on the new basis, and
the resulting excess is to be applied in the reduction of the debt of the State to the bank.
In accordance with the practice followed
in other European countries when returning
to a gold basis and to insure the maintenance
of monetary stability the Bank of Italy arranged for a $50,000,000 credit from a group
of private banks headed by J. P. Morgan
& Co., and for a $75,000,000 credit with a
group of central banks. According to the
arrangement made with the Federal Reserve
Bank of New York, in association with other
Federal reserve banks, these banks have agreed
to buy from the Bank of Italy, if desired, up
to a total of $50,000,000 of prime commercial
bills of the kinds and maturities made eligible
for purchase by the Federal reserve act. This
agreement is similar to those made with the
National Bank of Belgium and with the Bank
of Poland.
The present measures are the culmination of
a series of preparatory developments. In the
fiscal year 1925 the Italian budget was balanced for the first time since the war, and the
balance then achieved has been maintained.
Early in 1926 the terms of Italy's debts to
England and to the United States were definitely fixed at amounts that were considered
to be within Italy's capacity to pay. During
the year a large reduction was effected in the
total of the internal debt; and a notable
conversion of short-term into perpetual debt
took place.
Banking developments further prepared the
ground for the currency reform. In the first
half of 1925 borrowing at the Bank of Italy and
bank note expansion were still under way, and
in June the lira began to decline on the exchanges and prices in Italy rapidly advanced.
The Bank of Italy met this situation by three
successive increases in its discount rate from
5}/2 per cent, the level at which it had been
since 1922, to 7 per cent, at which point it
has remained. Money rates in the open
market advanced correspondingly, and this
stiffening of money rates, together with strict
regulation of exchange transactions, was an
CENTS PER LIRA
6
1925
1926
1927
The figures for wholesale prices are those of Professor Bachi's revised
index (sea p. 63), recomputed on the base 1925-1927=100
influence in bringing the lira back to its previous level in September and in causing prices
steadily to decline.
In the spring of 1926, however, the lira broke
again, and this break was followed by a series
of measures by the Government. On June
30, 1926, the Bank of Italy was made the sole
bank of issue in the Kingdom, taking over the
circulation of the Bank of Naples and the
Bank of Sicily. On September 7, 1926, the
bank was given supervisory powers over the
entire banking system, and the Government
announced several measures designed to bring
about "deflation." In the first place, the
State undertook to repay gradually its debt
to the Bank of Italy. A first reduction was
made by transferring to the bank an amount
28
FEDERAL RESERVE BULLETIN
equal to $90,000,000 arising from an earlier
loan in the United States, thus reducing the
debt by 2,500,000,000 lire. A limit was
placed on the amount of bank notes outstanding, and the Government undertook to convert
its 5 and 10 lire notes into silver coin and to
withdraw entirely its 400,000,000 of 25-lire
notes outstanding. Meanwhile the Government's finances were in a much strengthened
condition, and control of exchange operations
was in the hands of the central authorities.
Almost immediately the lira began to rise on
the exchanges, and wholesale prices began to
decline rapidly.
During this period loans and discounts at
the Bank of Italy were substantially reduced
JANUARY,
1928
by the process of turning over to the bank
foreign balances acquired largely through the
borrowing abroad by Italian industries and
public bodies. Reestablishment of confidence
in the lira, together with the higher level of
money rates, also led to a considerable movement of funds to Italy from abroad, thus
increasing the demand for lira exchange and
affording the Bank of Italy the opportunity
of strengthening its reserve position by the
purchase of foreign balances. Since last July
the value of the lira has been stabilized in
effect at slightly more than 18 lire to the
dollar, and its new parity is thus somewhat
lower than the value it has maintained in the
market for the past six months.
REPORT OF THE AGENT GENERAL FOR REPARATION PAYMENTS
The report of the Agent General for Reparation Payments, submitted to the Reparations
Commission under- date of December 10, 1927,
and covering the third annuity year, gives a
comprehensive account of the execution of the
experts7 plan, in relation to the German
budget, the German public debt, German
credit conditions, Germany's foreign trade, and
German business conditions in general. It
also includes in annexes copies of the Agent
General's memorandum of October 20, 1927, to
the German Government, calling attention to
certain general tendencies believed to be
dangerous both to the execution of the experts'
plan and the general German economy, the
memorandum submitted in reply by the
Finance Minister under date of November 5,
and the speech of the Finance Minister before
the budget committee of the Reichstag on
October 26.
The conclusions drawn by the report emphasize the fundamental conceptions of the plan
itself, in the light of experience, and point out
as the principal lesson to be drawn from the
past three years that:
As time goes on, and practical experience accumulates, it becomes always clearer that neither the
reparations problem, nor the other problems depending
upon it, will be finally solved until Germany has been
given a definite task to perform on her own responsibility, without foreign supervision and without transfer
protection.
That part of the report (about one-sixth)
which deals with credit conditions in Germany
is as follows:
GERMAN CREDIT CONDITIONS AND THE CURRENCY
The broad activity which German industry
and commerce have maintained during 1927
has been associated with credit expansion and
more recently with credit tension. It is true
that in this period German business enterprises have been getting the benefits of the
searching process of rationalization undertaken two years or more ago, have reemployed
often at higher wages by far the greater part
of the workers on the unemployment lists
last year, and have much enlarged the volume
of goods produced and distributed. But
industrial and commercial growth has been
confined mainly to the internal market, where
in recent months the prices of goods entering
into consumption have risen; and quickened
domestic business has called for a much larger
volume of imports than a slowly rising volume
of exports has as yet been able to balance.
Along with this revival of internal activity,
partly the result of it and partly causing it,
credit expansion has taken place, not only
in the form of increased dependence on the
Reichsbank, but also in the shape of further
loans and credits from abroad.
The inflow of foreign credit in recent months,
by reason of its size and speed, raises the question whether foreign loans in such volume are
still serving the purposes of German reconstruction. In so far as they have provided the
public authorities with additional spending
power at a time when industry was already
actively engaged, the incoming foreign loans
Y,
1923
FEDERAL RESERVE BULLETIN
have merely stimulated expansion, and so
have interfered with the solid work of reconstruction. There remains, no doubt, a proper
field for the use of foreign credit, which may
include some of the undertakings committed
to the charge of the public authorities. At
this moment, in fact, the Reich, in cooperation with the States and communes, is engaged
in a survey of present conditions and of probable future requirements. It is essential to
the stability of German reconstruction that
this survey should lead to a general program
which will at once maintain the confidence of
the foreign investor and adjust the inflow of
foreign funds to the dimensions that currency
stability presupposes.
Foreign loans.—At the time the experts'
plan went into effect, one of the problems at
the root of German reconstruction was the replenishment of the stock of working capital
lost through the war and scattered during the
inflation. The first balance sheet of the reconstituted Reichsbank, issued on October
15, 1924, reported reserves amounting to 818
million reichsmarks, of which 614 millions
were in gold and the rest in foreign bills,
checks, and deposits, classified together as
devisen. In addition, Germans possessed an
indefinable amount of claims against the rest
of the world in the shape of foreign securities,
deposits in foreign banks, foreign currencies,
and numerous other less liquid items. The
second committee of experts estimated that
at the end of 1923 German capital abroad of
every kind, including capital of varying degrees
of liquidity and capital invested in foreign companies and firms, amounted to around 8,000
million gold marks. But in the interval between the making of the estimate and the beginning of operations under the plan, credit
stringency at home, together with confidence
in the ultimate goodness of the German currency, had attracted back to Germany a large
portion of the available funds, but to an
amount much less than the estimate.
Manifestly the Reichsbank's reserves plus
such German-owned funds held abroad as might
still be susceptible of conversion into gold were
far too slight to support the credit structure which German rehabilitation demanded.
Quite aside from the additional reserves required against a growing currency, credit was
required for the uses of agriculture and to cover
the ordinary interchanges of commerce and
industry. Moreover, the readjustment to conditions of a stable currency was still incomplete
79290—28 3
29
and the expensive process of rationalization
was still to be carried through. Over and
above these internal requirements, Germany
needed foreign goods, particularly raw commodities with which to replenish depleted
stocks and to furnish mills and factories with
working materials. If it had been necessary
for Germany to depend exclusively upon domestic resources for building up so large a
fund of credit, the process would have been
painfully slow and German reconstruction
would have been subject to manifold political
and social as well as economic hazards.
The experts themselves made a foreign loan
an essential part of their plan. In specifying
the purpose of this loan, which was issued in
the autumn of 1924 in the effective amount of
800 million gold marks, they said:
External money is indeed an essential part of our
scheme, in part for the establishment of a new bank of
issue; in part to prevent an interruption of deliveries
in kind during the transition period; and essentially,
to create the confidence upon which the whole success
of the scheme depends. But we do not propose that
it should be confined, or devoted specially, to meeting
deficits on ordinary expenditure even during a transition period. On the contrary, as will be seen, we think
that, from the beginning, internal resources should
meet internal ordinary expenditure and at a very
early date should suffice in addition to make substantial
contributions toward the external debt.
The restrictions mentioned by the experts
were in fact applied to the proceeds of the loan
when they became available, and the German
Government has not since that time issued any
foreign loan for the purpose of making up
deficits or otherwise.
In addition to the loan for which they themselves provided, the experts looked forward to
a more general flow of investment credit toward
Germany as a natural consequence of the
restoration of confidence. In this connection
they said briefly:
* * * the success of our proposals to attain
financial stabilization depends essentially upon the
return of confidence. Without this the return of German capital invested abroad, the attraction of foreign
capital for the purposes mentioned in the scheme and
of foreign credits for the current conduct of business,
and even the proper collection of taxes, will alike be
impossible.
The part which foreign loans have played
in building up the reserves of the Reichsbank,
in supplying a broader basis for domestic
credit, in providing funds for agricultural
and industrial rehabilitation, and in replenishing stocks of foreign raw materials and goods,
has already been described in previous reports.
It needs no further comment here than that
30
FEDERAL RESERVE BULLETIN
the progress already made could not have been
attained without them.
But the question at present is not what
foreign funds have done in the past for the
benefit of Germany, but how far they can be
usefully absorbed in the future and to what
extent they might even prevent, if they continue to flow in their recent volume, the consolidation of the advancement already made.
This suggests an examination of specific consequences already observed and a discussion
of the general function of foreign credit with
respect to the German economy as a whole.
Volume of foreign loans.—There have been
only brief periods since 1924 when foreign
funds in volume have not been flowing toward
Germany. At times they have taken the form
mainly of long-term loans, at others of short
loans, often of both together. The first two
months or thereabouts of 1927 covered one of
the few periods when foreign funds were not
flowing in. This was the period, described in
detail in the interim report, when under the
influence of a 5 per cent rate at the Reichsbank and low rates in the domestic money
market generally, money was being drawn away
from Germany. Thereafter, in response to
high and rising money rates in Germany, the
inflow set in again, but at the outset in the
form almost exclusively of short-term loans.
The amount involved in this inflow can not be
determined exactly, but up to the end of May
it was probably not less than 1,000 million
reichsmarks, not including commercial and
industrial credits.
Long-term borrowing was unimportant from
December until June. During that period, the
income-tax exemption which had formerly been
granted in favor of the foreign lender remained
in suspense. On June 3, 1927, however, the
Finance Minister announced that he was prepared again to recommend tax exemption "if
the loans are to be used for desirable economic
purposes and if their conditions correspond to
the conditions of the money market." The
resumption of the practice of granting tax
exemption was immediately followed by renewed negotations with foreign bankers and by
new offerings to the foreign public of German
capital issues. These rapidly increased in
volume until in the one month of October
German capital issues were issued abroad in
the nominal amount of about 525 millions. In
consequence of the very heavy borrowing
during the summer and autumn, and notwithstanding the slight borrowing during the first
five months of the year, the total German
capital issues offered abroad up to the end of
JANUARY,
1928
October, 1927, wore above the total for the
full year 1925 and not far below the total for
1926.
FOREIGN CAPITAL ISSUES
[In millions of reichsmarks]
Jan. 1
to Oct. Total
31,1927
1925
Loans of the States
Provincial or communal loans,
Loans of public and semipublic undertakings:
(a) Of the Reich
(b) Of the States and communes.
Loans of private enterprises
Loans of various church organizations.
Total
1926
138.6
256.0
270.6
249.5
267.3
109.0
676.5
614.5
161.7
202.8
470.7
25.1
25.2
346.5
736. 5
47.1
336.0
184.7
523.5
3.7
522.9
734.0
1, 730. 7
75.9
1,254. 9 1,675. 4 1,424. 2 4,354. 5
The foregoing table does not take account
of the German external loan, 1924, issued
under the experts' plan in the nominal amount
of 960 million gold marks, because its service,
in so far as the Reich is concerned, is included
in the reparation annuities. Without it, the
total German capital issues sold abroad during
the three years have been in the nominal
amount of about 4,400 million reichsmarks.
Since certain of the loans included in that
total have already matured and been refunded
or otherwise paid off, and because amortization of other loans has made some progress,
the present obligation as estimated by the
statistical office stands at about 3,950 million
reichsmarks; and it has probably been reduced
somewhat further by repurchases for German
account.
Out of the nominal total, about 1,300
millions represent direct loans to the States,
Provinces, and communes, and about 1,250
millions the loans to public and semipublic
undertakings. The latter sum is in turn
divisible into about 525 millions of loans to
undertakings which are related directly to the
Reich and 725 millions of loans to undertakings related to the States and communes.
The borrowings of undertakings related to the
Reich have included, for example, the loans
to the Rentenbank Credit Institution for
relending to agriculture, and the loan to the
United Industries Corporation, known as the
Viag, which the Reich owns. The loans to
the undertakings related to the States and
communes provided funds to a great variety of
enterprises, including electric light and power
plants, canal concerns, waterworks, industrial
concerns, mortgage institutions, electric railways, and concerns for the development and
carrying on of agriculture. In each case
JANUARY,
1928
FEDERAL RESERVE BULLETIN
these enterprises have an intimate relation to
the States, Provinces, and communes; frequently they are owned outright by individual
States or communes, sometimes jointly owned
by several, and in one or two cases their stock,
while in majority owned by public bodies, is
in part privately owned. In many instances
the issues bear the unconditional guarantee
of a State or commune, and often the borrower
is not distinguishable except in name from an
operating department of the State or commune
to which it belongs.
These various foreign loans—that is, the
direct loans of the States, Provinces, and
communes and the loans of the enterprises
related to them—have now reached a nominal
amount in round figures of 2,000 million
reichsmarks. In the memorandum of October
20, 1927, to the German Government figures
of an earlier date were used, in the amount of
1,600 million reichsmarks. In his reply, the
Finance Minister, limiting his observations to
only such loans as had been dealt with by the
advisory office, stated that this total was too
high, and that it included loans made to the
Rentenbank Credit Institution for relending
to agriculture. This statement apparently
results from some misunderstanding of the
figures. The total given in the memorandum,
now increased by 400 millions, did not in
fact include the Rentenbank loans, but it took
into account loans to various enterprises
related to the States and communes which the
advisory office for one reason or another did
not review. It is noteworthy that in total
the loans of this category have somewhat
exceeded the loans to private industry. The
importance of these loans from the standpoint
of State and communal administration has
already been dealt with in the chapter on the
budget; their relation to the general credit
situation will be discussed below.
In addition to the external capital issues of
about 4,400 millions nominal amount, there
is a large volume of short loans, the amount
of which can only be estimated. These comprise foreign deposits in German banks, loans
to bankers for stock-market purposes, bankers'
loans to States and communes, industrial and
commercial credits, and so on. The Reich
Minister of Economics, in the course of a
hearing before the budget committee of the
Reichstag, estimated the short-term credits
as at the end of October at 3,600 millions
gross amount—that is, without deducting
short credits owing to Germans from abroad.
The amount of German short-term debt does
not appear to have increased appreciably
31
as compared, for example, with the position
in the early summer. The proceeds of certain
long-term loans have been used expressly for
the purpose of retiring short debt, and favorable rates of exchange may have induced some
further repayment of short loans. But foreign
bankers continue to offer short money at
favorable rates of interest, and when German
bankers refuse these offers it is evidence of
self-restraint on their part rather than the
result of conditions in the local market which
make transactions of that sort unprofitable
Short-dated debt owing by the communes U
foreign lenders, either directly or through the
medium of German banks, remains a pressing
and difficult problem. The amount is indefinite but is at present the subject of inquiry
at the instance of the Reich.
Effects of foreign Joans.—The whole German economy has been under the influence
of inflowing foreign credit and in some respects
has been dominated by it. To attempt at
this point to trace its effects over the entire
field of German economic activity would burden unduly this section of the report. Consequently it is intended here merely to outline
the bearing which foreign loans have had upon
the development of German business conditions
in general and upon foreign trade, both of
which are treated in detail in subsequent
chapters. In addition a somewhat more detailed discussion is given of the effects of these
loans upon the foreign exchanges and upon
stock-market speculation.
The development of business conditions in
Germany during the last year has been entirely
characteristic of a period when large supplies
of fresh funds become available for production
and consumption. Many of the changes manifested were in the direction of relief from
conditions which had been seriously adverse.
For example, severe and wide-spread unemployment decreased until by October, 1927,
more persons were gainfully employed in Germany than at any previous time. The number
of commercial failures and the amount of dishonored bills also much diminished. The
physical volume of production in the basic
industries, which was already high in the
latter half of 1926, has been running well above
the average for that year, and less precise
reports from the finishing industries point in
the same direction. Building activity, railway
traffic and domestic trade at both wholesale
and retail have shown on the whole a similar
advancement. The larger volume of goods
produced has in general passed into consumption, and only within recent weeks have
32
FEDERAL RESERVE BULLETIN
reports appeared that stocks of goods ready
for consumption were accumulating. The
larger volume of goods consumed is explained
on the score of wide employment and higher
wages. But the price index for consumers'
goods at wholesale rose about 18 points from
February to October, and now stands at almost
the same level as when the arduous process
of rationalization was begun. These developments are described individually in a later
chapter. To attribute all of these changes
to the single fact of foreign borrowing- would
be a misapprehension, for they were in reality
the result of a complicated set of forces. But
the stimulating effect of new funds, in this
€ase derived largely from abroad, is to be seen
in all of them, whether favorable or the reverse;
and the signs of expansion which are visible
are largely the reflection of incoming foreign
credit.
The growth of German business activity
briefly indicated above has brought with it
some growth in export trade, but up to the
present time exports still remain far below
imports. In the interim report of this year it
was said:
It is only natural that the first benefits of so sweeping
a process of reconstruction should be visible in a
strengthening of conditions at home, and in a revival
of internal consumption and trade. But the real test
of the value of the readjustment depends upon a further question, as to the power of German commerce
and industry to compete again with the rest of the
world. If what has thus far been done results only in
quickening the pace and enlarging the volume of
domestic business, the readjustment may be regarded
as still incomplete and its present advantages as only
transitory. It might even lead to over-development
internally with possibilities of new difficulties in the
future. But if better domestic markets and the larger
production therein implied bring more active foreign
trade both ways, export as well as import, then it will
be clear that German industry has reestablished
itself on a competitive basis and the process of readjustment may be regarded as having been successfully
completed.
Since July, it is true, the value of exports
has shown an encouraging rise, but the foreign
trade deficit for the twelve months ended
October 31, 1927, amounted none-the-less to
about 3,600 million reichsmarks. While it is
rto be assumed that some part of the imported
raw materials which contributed to the making
of this deficit will flow out again in the form of
finished goods, the very size of the import
ibalance gives some indication of the strength
t)f the demands of internal consumption.
In paying for the excess of imports, Germany
relied mainly on loans and credits from abroad.
It is axiomatic that a borrowing country imports the proceeds of its loans in gold (or devi-
JANUARY,
1928
sen) or in securities or in goods, but it is, of
course, not to be assumed that the making of
a loan necessarily precedes the import of goods.
In Germany the process has been more complex, in that foreign loans have often been used
as the basis for domestic credit, which in turn
has stimulated domestic production and consumption, calling for further goods from
abroad and further loans. The foreign trade
deficit, viewed both as cause and as effect, is
intimately bound up with foreign borrowing,
and each is a part of the same problem. The
narrowing of one is apt to be associated sooner
or latter with the narrowing of the other.
For somewhat more than a year the quotations of the reichsmark in the foreign exchanges
have moved more or less freely in response to
supply and demand. On August 23, 1926, the
Reichsbank released the reichsmark from its
technical adherence to the dollar, and since
then quotations have varied both upward and
downward from the rate of 4.20 reichsmarks
to the dollar at which it was previously maintained. The dominating influence at all times
has been the international flow of funds; international movements of goods or changes in the
relative levels of commodity prices from one
international market to another have been of
distinctly secondary importance.
During the first half of 1927, the reichsmark,
for reasons which were explained at length in
the interim report, was at a discount in terms
of the other principal gold currencies, and
within a period of five months the Reichsbank
was called upon to supply the market with the
equivalent of about 1,000 million reichsmarks
from its stock of gold and devisen. During
that period the demands upon the Reichsbank
diminished as foreign funds for use at short
term were attracted to the German market,
and when in July the proceeds of long-term
loans began again to be available, the value of
the reichsmark in the foreign exchanges
abruptly increased. As far as the dollar was
concerned, this strengthening of the reichsmark
received an additional impulse from the reduction of discount rates at the Federal reserve
banks early in August, which stimulated further
the outflow of American funds to Europe.
With respect to sterling, the strength of the
reichsmark has been less pronounced, thereby
reflecting the rise of sterling in terms of the
dollar. But nevertheless, the reichsmark during most of the autumn has been above par
with sterling, and on the whole has been one
of the strongest gold currencies in the world.
The influence on the exchanges of the incoming funds was magnified by the policy of
JANUARY,
1928
the Reichsbank, which declined during this
period as a matter of principle to buy the
dollars or other foreign currencies derived
from State or communal loans. The affects
of this policy upon the Reichsbank itself will
be described in a later section of this chapter
but it may be observed at this point that the
abruptness of the fall of the dollar in terms of
reichsmarks was largely due to the fact that
the States and communes, in realizing in German currency on the proceeds of their foreign
loans, had to offer them on the market for
what they would bring. The decline of the
dollar, while it did not reach the point at which
it would be profitable to buy gold in New
York and bring it to Germany, did approach
the point at which it would pay to convert
dollars into sterling, buy gold in London and
bring the gold to Germany. That no such
transactions took place in any substantial
sums w^as owing mainly to the fact that on
October 18 the Reichsbank lowered its buying rate for gold from the statutory mint
equivalent of 2,790 reichsmarks per kilo of
fine gold to 2,784 reichsmarks, the lowest
point at which it is legally qualified to buy
gold. This reduction took place on the day
before the dollar reached 4.183, the lowest
point at which it had been quoted up to that
time since stabilization. Early in November,
after it became manifest that foreign borrowing by the States and communes would be
for a time interrupted, the reichsmark lost some
of the strength it had gained. This loss,
however, was only temporary; in the last
half of November the strength of the reichsmark has proved to be more sustained than at
any previous time. This is to be explained,
apparently, both on the ground that foreign
funds are being borrowed at short term and
that Germans are finding it necessary to bring
back funds formerly placed abroad, including
some funds which had been invested in foreign
securities.
The long rise in share prices on German
stock exchanges which began at the close of
1925 and continued until May, 1927, was
closely related to the inflow of foreign funds,
though not fully explained by it. The direct
participation of foreign money in the stock
markets, aside from loans to banks and brokers,
included the purchase of shares by foreigners
on speculative or investment account. In
some cases foreign syndicates were formed for
the purpose of buying interests in German
industries, but for the most part they confined
themselves to buying and selling shares on the
stock market. The foreign participation in
33
FEDERAL RESERVE BULLETIN
the market has now much diminished, but the
speculative profits which have now been withdrawn represent an all but total loss to the
German economy.
The rise in stock prices anticipated the revival of German industry and under stress of
speculative activity, supported by ample funds,
unduly discounted it. At the end of 1926, the
average return on stocks listed on the Berlin
Bourse, taking into account the dividend rates
and the current market prices, was about V/i
per cent; at the end of April, after allowing for
the intervening rise in prices and advances in
dividends, the average return was still 33^;
and by the end of October, when a decline in
stock prices had been going on for almost six
months, the average return was less than 4 ^ .
The precipitating cause of the decline was the
decision of the Berlin Bankers' Association,
taken on May 12, 1927, to restrict the funds
loanable for stock market purposes. Their
action was offset to some extent by foreign
lenders who furnished funds directly to brokerage houses, but the decline nevertheless has
proceeded with occasional periods of recovery
up to the present.
Movements of bond prices, in which the
speculative factor has been relatively absent,
did not rise so far as stock prices and have
fallen less. At their highest point, the rate of
return was still above 7 per cent and at the
end of October was at about 7,V£. To some
extent the high yield on bonds is due to the
attitude of the investor whose experience during
the inflation with fixed-term securities was
disastrous. But more fundamentally it illustrates the scarcity of investment capital which
still obtains in Germany, and by contrast with
the movements on the stock market it shows
the degree to which foreign and domestic funds
have been attracted to speculation rather than
investment.
Measures
of control
over foreign
borrow-
ing.—No steps have been taken by the public
authorities or the Reichsbank to control the
access of German private industry and commerce to foreign money markets, unless the
occasional suspension of the tax exemption
privilege is to be taken in this sense. Generally speaking, it may be assumed with
industry and trade that the ordinary safeguards against overspending and overborrowing will prevail, and that private enterprise will not borrow unless it sees its way
clear to profit by fresh funds or unless it is
driven to it by necessity; and in such cases,
it may be expected that the lender on his side
will form his own judgments and act accord-
34
FEDERAL RESERVE BULLETIN
ingly. These considerations furnish a natural
check on the borrowings of private industry
and commerce, and may be relied upon to
provide their own penalties quickly enough in
cases of unsound or excessive borrowing.
With respect to the States and communes
and the public enterprises the position has
been different. Here varying factors entered
into the considerations of a loan: Matters of
prestige of one city against another; questions
of social or political advantage; needs for
extension of transportation, lighting and waterworks facilities neglected during the war;
demands for housing, agricultural development and so on. The productive activities
of State and city administrations in Germany
often led them to borrow for extensions and
improvements. The proceeds of such loans
might easily release for unproductive and
nonessential expenditures revenues which in
the absence of borrowing would normally
have been devoted, in part at least, to productive purposes. The foreign bankers on
their part have been mainly interested in the
amount of bonded debt already outstanding
and in the sufficiency of the revenues to meet
the service of the loans. Owing to inflation,
State and city debts in Germany, even after
revalorization, remain relatively low, and the
general taxing power can be relied upon for
the service of their securities. Thus, most
of the ordinary restraints upon private borrowing have been lacking in the case of the
States and communes, not only as regards the
borrower but with the lender as well.
The memorandum of October 20, 1927, for
the German Government emphasized the
general importance of taking effective measures
to supervise the borrowings of the States and
communes. It recognized, of course, that the
Reich does not control the States and communes in these matters. But it pointed out—
when the States and communes go into foreign markets
to finance their budgetary expenditures and internal
improvements, they raise fundamental questions of
foreig;n policy which have the most direct interest for
the Reich. And under the Constitution itself the
Reich has a unique opportunity and even responsibility for leadership, not merely because of its large
transfers of revenue to the States and communes but
also because of its powers to prescribe the fundamental
principles and main outlines of their laws in many
matters of taxation and public finance. The force of
these considerations has been recognized to some
extent in the efforts that have been made for the past
two years and more to supervise the foreign borrowings
of the States and communes through an advisory
organization established for this special purpose.
These efforts, for whatever reason, have not been
successful, and the results appear in the swollen figures
JANUARY,
1928
for State and communal borrowings that have already
been given.
From the very beginning the efforts to provide a supervisory procedure have presented a
vexed problem full of complications. Immediately after the experts' plan went into effect
it was seen that the States and communes
would be in the market for numerous loans,
and that the revival of confidence in German
credit would make funds freely available from
abroad. On November 1, 1924, the president
of the Reich issued a decree, terminable in
three months, making it necessary for the
States and communes to obtain the approval
of the Reich Finance Minister for loans made
abroad. Against this the States vigorously
protested on the ground that it encroached
upon their constitutional rights. Accordingly
a compromise arrangement was devised whereby the consent of the Reich was not to be
required for loans to the States or for loans to
such communes as were already subject to
controlling authorities. On this basis, the
Finance Minister's approval would be needed
only for those communes whose foreign borrowing was not under the control of a State. These
principles were incorporated in another decree
dated January 29, 1925, and were also put in
the form of law under date of March 21, 1925.
But by common consent changes had already
been made in the control procedure which
went considerably beyond the prescriptions of
the law.
At the center of the control procedure is the
so-called Beratungsstelle or advisory office. It
is composed of representatives of the Reich
Finance Ministry, the Reich Ministry of Economics, and the Reichsbank; two representatives of the States, in the persons of the
presidents of the Prussian State Bank and the
Bavarian State Bank; and a representative of
the State asking its advice. Its deliberations
are held in private and no publicity is permitted
to minority opinions. Its findings were not
made binding in the beginning, nor have the
successive changes in the procedure made them
so; but in practice they have been generally
observed.
It is impossible to summarize within reasonable compass the classes of loans which the
regulations require shall be brought before the
Beratungsstelle for its opinion. There are
numerous exceptions and qualifications which
are not susceptible of general statement. But
the Finance Minister's answering memorandum
of November 5, 1927, gave figures recapitulating the Beratungsstelle's activities from
JANUARY,
1928
FEDERAL RESERVE BULLETIN
35
January 1, 1925, to September 30, 1927, as restricting imports. The Beratungsstelle also
follows:
reports that it has been at some pains to make
sure that the prospective borrowers had no
BERATUNGSSTELLE ACTION ON FOREIGN LOANS
funds otherwise available or procurable to
carry out the purposes which foreign loans
[In millions of reichsmarks]
were intended to serve.
In applying the principles laid down in the
Applica- Recommendaregulations, the decision in each case has
tions
tions
usually depended on how the facts were to be
interpreted. The pressure on the BeratungsCommunal loans
1,076. 8
585.0
State loans
550.5 stelle, moreover, has been almost wholly in
605.9
Agricultural loans (Rentenbank-Kreditanstalt)...
241.0
241.0
the direction of liberality, either from the
Industrial loans (with State or communal guarantee)
262.0
253.6 interested States and communes, fully repreTotal
2,185. 7
1,630.1 sented on the Beratungsstelle itself, or from
the interested representatives of foreign bankers. The Reichsbank under the law is charged
The foregoing table shows that the principal with responsibility for regulating the circularevisory action taken by the Beratungsstelle tion of money and for providing for the utili
has been in the case of communal loans. The zation of available capital, and as such has a
applications of the Rentenbank Credit Insti- primary obligation to see that the influx of
tution have been allowed in full, while State foreign loans does not run counter to the
loans and industrial loans guaranteed by the interests of the currency. The Reichsbank's
States and communes have been only slightly opinion from the beginning has been critical
reduced. Aside from these guaranteed indus- of foreign borrowing, certainly in the proportrial loans, there have been numerous loans to tions which it has assumed; but what weight,
enterprises intimately associated with the if any, its opinion has had on the BeratungsStates and communes which, for one reason or stelle is not a matter of public record.
another, have not been brought before the
Toward the end of October a further reBeratungsstelle at all, amounting in round vision of the regulations governing the action
figures to nearly 500 million reichsmarks.
of the Beratungsstelle was undertaken, partly
According to its owoi summary of its activ- for the purpose of bringing currency consideraties, published in January, 1927, the Bera- tions more actively into the foreground. The
tungsstelle in considering loans takes into new regulations, it is understood, have received
account, among other things, whether the terms the assent of the States, but up to this time the
offered by the bankers are satisfactory, whether Beratungsstelle has given no interpretation of
the proceeds of a loan are to be used for pro- them. From the published reports, it appears
ductive purposes, and—
that the definition of the tests to be applied
whether the total amount of foreign loans approved or has undergone no change of any importance,
the number of applications submitted has reached a but as a matter of procedure the new regulafigure which, in the interests of the currency or of the tions provide that if one of the representatives
loan terms which it is desirable to obtain, should not
sitting on the Beratungsstelle objects to the
in the meantime be exceeded.
the majority,
In practice, it does not appear what weight, opinion of and in that casehe may demand a
the
if any, has been given to the interests of the rehearing, the Reich Economics Reich Finance
Minister,
currency in the votes taken by the Beratungs- the president of the ReichsbankMinister and
stelle; the question of productivity, however, their representatives on the boardwill replace
and sit in
has been 77
much emphasized. The term " pro- person.
ductivity has been defined by the BeratungsFor the time being, it appears, the Berastelle as meaning—
tungsstelle has discontinued its sessions. It
that foreign loans must be employed for such profit- was clear from the volume of loan applications
earning investments as by the direct production of the
values guarantee out of their own income the interest still pending in October, even after the heavy
and sinking-fund payments on the capital invested, borrowing of that month, that it was essential
without having recourse to the general income of a to obtain a comprehensive survey of the
public body.
requirements of the States and communes,
In general, loans for the construction of particularly of their short-dated debts and
dwelling houses have not been regarded as their uncovered commitments for projects
productive, particularly, it appears, because already under way. Questionnaires have acthey do not result in promoting exports or cordingly been circulated to all the larger
36
FEDERAL RESERVE BULLETIN
communes asking for detailed information, but
it will still be some weeks before the results are
available. This deliberate action has resulted
for the time being in a cessation of foreign
borrowing, and it may be that further modifications of the supervisory procedure are in
prospect.
Relation to reparation payments.—The position of the transfer committee and of the Agent
General for Reparation Payments has been
entirely clear at all times. It may be worth
restating in order to avoid any possibility of
misunderstanding.
The German external loan, 1924, is in a class
by itself. This loan was issued pursuant to
the terms of the experts' plan and the London
agreements, and the funds for the service of
the loan are provided out of the annuities
payable by Germany under the plan. The
Reparation Commission, by its decisions of
October 13, 1924, made the service of this loan
a first charge on all receipts under the plan,
a first charge by way of collateral security on
the controlled revenues, and a first charge on
any other assets or revenues of Germany to
which the powers of the commission extend
under the treaty of Versailles. The German
Government in addition recognized the service
of the loan as a direct and unconditional obligation of the Reich, chargeable on all its assets
and revenues. The transfer committee, on
October 31, 1924, took appropriate action
for insuring the service of the loan, recognizing its priority and giving it an absolute right
of remittance irrespective of the effect upon
the exchange. The German Government, the
agent general for reparation payments, the
commissioner for the German railways, the
trustee for the German railway bonds, and
the trustee for the German industrial debentures, all took note of the action of the Reparation Commission and the transfer committee
and gave assurance of their cooperation to the
same end.
There have been no other external loans of
the Reich since the German external loan, 1924,
so that no question has arisen in the meantime
as to any loan of the Reich. But there have
been numerous external loans of the German
Federal States within the past three years.
As to these loans of the States, it has already
been pointed out, in the report of November
30, 1926, that:
JANUARY,
1928
" Subject to such exceptions as the Reparation
Commission may approve, a first charge upon all the
assets and revenues of the German Empire and its
constituent States shall be the cost of reparation and
all other costs arising under the present treaty or
any treaties or agreements supplementary thereto or
under arrangements concluded between Germany and
the Allied and Associated Powers during the armistice
or its extensions."
Up to the end of 1926 ten loans of States had
been sold in foreign markets, including four
loans of German cities which have the standing
of States. In none of these cases was any
application made to the Reparation Commission for an exception under the treaty provisions, and no such application has been made
in connection with any of the five loans placed
in 1927. In only one case, that of the Prussian
loan of September, 1926, has the German
Government brought a loan formally to the
attention of the Reparation Commission or the
transfer committee, and then on the ground
that it was complying with assurances, given
the year before, that it would notify the transfer
committee simultaneously with the Reparation
Commission of any impending foreign payments. The Agent General for Reparation
Payments in replying to this notification under
date of September 20, 1926, called attention
to the fact that the loan prospectus made only
a partial quotation of article 248 of the treaty,
and said:
In response to their informal inquiries, which were
first made some months ago, I have consistently advised both the Finance Ministry of the Reich and the
issuing bankers that in the absence of an express
exception by the Reparation Commission an external
loan of the State of Prussia must be regarded as ranking
secondary to the repayment of reparations under the
treaty of Versailles as well as under the experts' plan.
I have stated, further, that the procedure to be followed, in case such an exception were desired, has
already been indicated by the procedure actually
followed in connection with the German external loan,
1924. To that loan the Reparation Commission
granted a priority over the payment of reparations,
and the transfer committee, by appropriate resolution,
recognized that priority as against the transfer of
reparation payments. Neither the Government of the
Reich, nor the Prussian Government, nor the issuing
bankers, so far as the transfer committee is advised,
have made any application for an exception to article
248 in connection with the external loan of the State of
Prussia, and the transfer committee understands,
therefore, that the secondary character of the Prussian
loan is recognized.
In the same letter, in commenting upon a
statement which appeared in the prospectus
over the name of the Prussian Finance Minister
The provisions of article 248 of the treaty of Versailles, which affect foreign loans of the States as well to the effect that—
as those of the Reich, appear to have exercised less Neither German law nor any international engagements
restraining influence than their terms would pre- assumed by the German Government involve any
suppose. The treaty says:
restrictions upon the acquisition by the free State of
JANUARY,
FEDERAL RESERVE BULLETIN
1928
37
Prussia of the foreign exchange requisite to meet the dence exists between lender and borrower, and
external obligations to be evidenced by these bonds— as long as natural forces continue to have free
the Agent General said:
The transfer committee finds itself unable to accept
this statement, and feels that in the absence of an
express exception under article 248 of the treaty of
Versailles this statement can not properly be made,
when any loan of the Reich or any of the Federal
States is concerned, unless qualified by reference to
the priority of reparation payments and transfers. In
view of the secondary character of the external loan of
the State of Prussia, as regards both reparation payments and reparation transfers, and in view also of
the relatively large share of the annual budget of the
State of Prussia which is financed by transfers of
revenue from the German Reich, the transfer committee considers that the service of the Prussian external loan must necessarily be regarded as secondary to
the obligations in respect to the transfer of reparation
payments which the German Government has assumed
by virtue of the experts* plan and the London agreements.
Wherever the question has arisen, in other
words, the transfer committee and the Agent
General for Reparation Payments have made
full reservations of the legal rights of the
creditor powers under the treaty of Versailles
and the experts' plan. This, indeed, was their
manifest duty.
The plan did not give to the transfer committee or the Agent General for Reparation
Payments any power to supervise or control
the issue of foreign loans of the German Reich,
the States or the communes, or of German
companies or other undertakings, and except
in the case of the German external loan, 1924,
the funds for the service of these loans, whenever issues, do not pass through the hands of
the transfer committee or the Agent General.
With the one exception, therefore, of the German external loan, 1924, the transfer committee
and the Agent General for Reparation Payments have always stated, in answer to inquiries, that they were not in a position to give
any assurances whatever as to the service of
any of these loans that might be floated abroad.
The general powers of the transfer committee
and the Agent General with respect to the
transfer of reparation payments and the German exchange are matters of public record, in
the treaty and the plan. In substance, therefore, the position is that bankers and investors
have been left free to make up their own minds
as to the investment merits of foreign loans
issued by German public authorities or private
undertakings, in much the same manner as
would be done with any other investments.
General observations.—In its broadest sense
German foreign borrowing has been and continues to be a phase in the redistribution of
credit throughout the world. As long as conn79290—28
4
play, the international flow of funds tends to
equalize differences in the credit supply from
one country to another. Since the war these
differences have been extraordinarily wide; in
certain countries, as, for example, in the United
States, the supply of credit on the whole has
been ample, whereas in other countries, as, for
example, in Germany, the supply of credit has
been deficient. Under such conditions, particularly as confidence in the goodness of loans
to Germany has remained high, it was to be
assumed that Germany should become a large
borrower from the United States and from
European countries having funds to lend.
Prevailing interest rates furnish a fair measure of the supply of available credit, and if in
one country they are far out of line with the
rates in another, they provide the stimulus for
one country to lend and the other to borrow. In
recent years the international movement of
funds which follows disparity in interest rates
has exerted a dominating influence over the
German foreign exchange, and has been of far
greater importance in that respect than the
fluctuations in the volume of Germany's exports
and imports of goods.
Generally speaking, the value of the dollar
in terms of reichsmarks has risen whenever the
private discount rate in Berlin has declined
toward the bill rate in New York; and, on the
other hand, the value of the dollar in terms of
reichsmarks has fallen whenever the private
discount rate in Berlin has risen far above the
bill rate in New York. Though these interest
rates are not strictly comparable, they relate
to highly liquid paper demanding favored rates
in both markets, and in each case their variations are fairly symptomatic of market conditions as a whole.
As the foreign exchange rate itself indicates,
this disparity of interest rates has exerted a
powerful influence in drawing foreign funds
to the German market. The import of credit
is temporarily the equivalent of an import of
gold, upon which a further structure of domestic credit is erected. In fact, one of the
deceptive aspects of the import of credit is
that it provides the lawful basis upon which
further internal credit expansion can be carried out. In a country adhering to the gold
standard, domestic credit expansion based
upon domestic resources comes to a natural
end when the limit of the note-issuing power
is reached. But foreign credit is capable of
constantly enlarging the basis of domestic
credit, and the limit is not reached until the
38
FEDERAL RESERVE BULLETIN
foreigner declines to lend or the borrower
declines to take.
The management of foreign credit, in its
volume and in the rate at which it flows in, is a
matter of first importance, surpassing even the
management of Reichsbank credit in the
effects it may have on German economy.
Throughout the period since the experts7
plan went into effect, German borrowers have
had constant access to foreign credit in one
form or another and have thus been able to
exempt themselves in large degree from such
measures of credit control as the Reichsbank
administration thought it timely to undertake.
A high discount rate at the Reichsbank, aimed
at the restriction of credit expansion, has
usually furnished all the greater attraction to
foreign funds and to this extent has defeated
itself. A low discount rate, such as that during
the first five months of 1927, resulted at the
outset in a withdrawal of funds from Germany
but it also stimulated the use of Reichsbank
credit; as soon as the bulk of existing paper
eligible for rediscount at the Reichsbank had
passed into its portfolio, foreign funds flowed
in again in response to rising interest rates,
and carried the expansion still further.
The bank law and banking practice surround
the use of Reichsbank credit with many restrictions and safeguards. Yet the management of foreign credit, which since stabilization has exercised an influence on German
economy certainly equal to that of Reichsbank credit, has been subject to rules, in so
far as they apply at all, which have almost completely overlooked the broad bearing of foreign
loans on currency and credit in general. The
Beratungstelle, the work of which has already
been described, appears to have engaged
itself principally with the nominal productivity
of State and communal loans. Certainly a
loan should be productive, but under the conditions which have prevailed the question of
productivity is distinctly secondary to the
effects which borrowing is bound to have on the
economy as a whole. Nor does the argument
that "the amount of foreign indebtedness is
not disturbing in view of the magnitude of the
values given as security " have any bearing on
the fundamental queston as to whether foreign
money has been entering Germany in an
amount and at a speed leading to undue
expansion.
The answering memorandum of the Finance
Minister, dated November 5, 1927, while it
referred to numerous obstacles in the way of
setting up a direct control over the finances of
the States and communes, said that the govern-
JANUARY,
1928
ment of the Reich " recognizes it to be its
duty to bring this difficult problem to an early
solution which will take into account the wellunderstood reconstruction and entire interests
of Germany."
Domestic credit.—Ever since the early part
of 1927, dating approximately from the issue of
the internal loan of the Reich, the domestic
market has shown a much reduced capacity to
absorb new capital issues; industry and commerce have had to rely mainly on foreign loans
or upon bank credit to supply the funds which
their rising activity required. In consequence,
a very large increase has taken place in bank
credit, which has been reflected in increased
demands upon the Reichsbank and in higher
rates for money. While internal savings have
made some further progress, the monthly increases reported recently by the savings offices
have been running somewhat smaller than last
year, as is not unusual in times of growing
economic activity.
Reichsbank policy.—The central problem of
Reichsbank policy has been to reestablish contact between its discount rate and the money
market. The inflow of foreign funds, for reasons already explained, has often displaced the
Reichsbank from its normal position as the
elastic medium between credit supply and
credit demand, and has frequently contributed
toward making its rate ineffective. For at
least a year and a half, except for a period of
about six weeks at the beginning of 1927, the
Reichsbank rate has been out of touch with
the market; and only recently, that is, since
about the middle of October, have indications
developed that contact has again been tentatively established.
It will be recalled that in the summer and
autumn of 1926 money rates in Germany were
low, whereas during the entire period the
Reichsbank discount rate remained at 6 per
cent. On January 11, 1927, the Reichsbank
reduced its rate to 5 per cent, thereby recognizing existing market conditions and bringing
itself more nearly into relation with them. As
was described at length in the previous report,
this action had the result of stimulating the
flow of funds away from Germany and ultimately of increasing with great rapidity the
demands for Reichsbank credit. Within six
weeks or thereabouts from the time the Reichsbank rate was reduced, domestic money rates
were again rising and were again attracting
foreign funds, in this case almost exclusively
at short term, to the German market. The
Reichsbank, however, did not raise its discount
rate to 6 per cent until June 10, 1927, mainly
JANUARY,
1928
FEDERAL RESERVE BULLETIN
on the ground that if it had acted sooner the
inflow of foreign funds would have been all
the greater. In the interval the Reichsbank
rate was the lowest representative money rate
in Germany.
At the beginning of the summer, the Reichsbank found itself with a large portfolio of domestic bills which the higher discount rate did
not reduce but only temporarily kept in check.
By early autumn further increases in interest
rates put additional pressure on the Reichsbank,
and on September 30 the Reichsbank's loans
and discounts, together with the amount of
currency in circulation, stood at the highest
point since stabilization. The Reichsbank accordingly on October 4 raised its discount rate
from 6 to 7 per cent and its rate on collateral
loans from 7 to 8 per cent.
The situation which the increase in rates
thus recognized dated back to the previous
spring, when the Reichsbank lost control of
the market. Whether the 7 per cent discount
rate, which still remains in force, will prove
in the long run sufficient to reestablish control,
can not be foretold. Up to the present, neither
the Reichshank's portfolio nor the total currency in circulation has risen to the level of
last September, but in part at least these
moderations are characteristic of the season.
Mone}^ rates have also fallen slightly in the
market, but the standard borrowing rate at
the principal banks, which varies according
to changes in the Reichsbank rate, still stands
at 10 per cent.
In the five months ended May 31, 1927,
the Reichsbank's stock of gold and devisen
decreased about 1,000 million reichsmarks,
of which about 450 millions had been reported
as part of the reserve against bank notes. This
decrease has been only partially replaced. On
November 30, 1927, the total reported reserves
of gold and devisen stood at 2,139 millions,
an increase since May of about 250 millions.
In addition, the Reichsbank's stock of devisen
not included among the reserves has risen by
an unstated amount. Altogether, it appears
that the increase since May has been somewhat
less than half the decrease during the preceding five months.
The slow increase in the reserves during a
period when foreign funds were flowing freely
toward Germany calls for special comment.
It has already been observed in the section
dealing with foreign exchange that the Reichsbank, as a matter of principle, declined to buy
the proceeds of loans placed abroad by the States
and communes and confined itself to buying
such odd amounts of exchange as represented
39
the day's excess in the market. This policy
had much to do with the abrupt rise in the
international value of the reichsmark which
took place in July and again in October. The
policy does not appear to have had any effect
in deterring the States and communes from
borrowing abroad, notwithstanding the fact
that it may have reduced appreciably the
reichsmark proceeds of the loans. On the
other hand, the refusal of the Reichsbank to
buy these foreign funds even at a favorable
price can hardly have failed to stimulate the
import of goods. An effect perhaps even
more important, and bearing on the position
of the Reichsbank itself, was that it accounted
in some degree for the expansion of the Reichsbank's portfolio of domestic bills. This arose
from the fact that borrowers who desired to
use the proceeds of their foreign loans in
reichsmarks—and the States and communes
belonged peculiarly to this category—were
obliged to sell the proceeds in the market,
which in turn had to look to the Reichsbank
for the additional currency required, using
domestic bills for the purpose when necessary.
In the late autumn the Reichsbank modified
its policy to the extent of purchasing the
proceeds of a loan issued for agricultural
purposes, and saw to it that the domestic
portfolio was relieved correspondingly. The
working of these forces is illustrated by a
diagram.
The reserves shown on the diagram are
confined to the two items of the Reichsbank
statement covering gold and eligible devisen,
and leave out of account such devisen as are
not reported. The fluctuations since May
are accounted for mostly by the changes
which have taken place in the holdings of
eligible devisen; the gold stock has increased
only 41 millions, the result mainly of imports
from Russia. The line on the diagram representing loans and discounts combines the
two statement items reporting bills and checks
and collateral loans. These are the principal
fluctuating elements of the loan classification*
The administration of the public junds.—The
administration of the public and quasi-public
funds has placed serious obstacles in the way of
a consistent Reichsbank policy and has frequently proved a disturbing element in credit
conditions as a whole. The successive phases
of the problem have been discussed at length
in previous reports.
The amount of idle treasury funds at the
disposal of the Reich, the States, and communes
is now much reduced, and their practical
influence over the money markets has dimin-
40
FEDERAL RESERVE BULLETIN
ished correspondingly. In so far as the public
authorities in charge of administrative funds
are concerned, the main point of difference
between their financial policy and the credit
policy of the Reichsbank has largely shifted
from a question of managing idle balances to a
question of the use of credit.
This latter
aspect of public financial practice has already
been discussed in preceding sections of this
report.
The German Government, in replying to
those passages of the memorandum of October
20, 1927, which dealt with the question of
public funds and other matters of divergent
policy, made the following statement:
The objections made against a credit policy of the
public authorities having a credit policy distinct from
the credit policy of the Reichsbank may be disposed of
by the statement that, in negotiations between the
Reichsbank and the authorities in question, an agreement has now been reached which provides for common
leadership in relation to the money market and covers
important fields of investment of public funds. In
those cases where agreement has not yet been reached,
endeavors are being continued. The government of
the Reich too if of the opinion that any thwarting by
other administrations of the currency and credit policy
followed by the Reichsbank must be avoided in the
interests of the uniformity and effectiveness of Reichsbank policy. As it has done hitherto, the government
of the Reich will meet together with the Reichsbank at
the briefest possible intervals with a view to keeping
the monetary and credit policy in harmony with
internal and external policy in general.
This general declaration of policy is of the
highest importance. No information is available as to the nature and extent of the cooperation with the Reichsbank which may already
have been arranged, but it is to be hoped that
the Government's declaration will have a
determining influence on the development of
public funds administration in the future.
It will be recalled that the issue last February of a long-term internal loan of the Reich
in the nominal amount of 500 million reichsmarks revived for the time being the problem
of administering its temporarily idle funds.
Under the conditions prevailing since its issue
this loan has had other consequences as well.
While it was nominally sold, its distribution to
the private investor proved to be very limited,
owing largely to the low rate of return from
the 5 per cent coupon at the offering price of
92. Notwithstanding efforts to support it, the
market price gradually declined below the offering price, until by the middle of August quotations stood at 85.9. The later stages of the
decline were in anticipation of the lifting of the
restrictions on the transferability of the bonds.
These restrictions were applicable to about
two-thirds of the 300 millions sold to the banks
JANUARY,
1928
and the public, and were due to expire on the
15th of August.
Shortly before this date, the Finance Minister of the Reich took the unusual step of
increasing the interest rate to 6 per cent, for
part of the life of the loan. The new rate was
made to apply as from August 1, 1927, and
continues in effect until July 31, 1934, the date
when the first drawings of bonds are due to
take place. The increase calls for the disbursement on the part of the Reich of about 5
million reichsmarks a year in additional interest charges. In the market, the quotation for
the bonds rose to 87.5, and it has stood at
about that point ever since; but apparently
further support from time to time has been
required.
The Finance Minister of the Reich has
recently announced his intention of issuing no
further long-term loans during the remainder
of the current year or even during the next
financial year. This declaration should give
important relief to the long-term market.
Under the bank law, it will be recalled,
the Reich is entitled to borrow at the Reichsbank for administrative purposes up to the
limit of 100 million reichsmarks, but on the
understanding that the Reich is not to be
indebted to the bank at the end of any business
year. Aside from the short credit facilities
thereby provided, an amendment of the bank
law, which became effective on July 14, 1926,
made treasury bills of the Reich eligible for rediscount or purchase by the Reichsbank when
brought to it from the market. Up to the
present, the Reich has offered no treasury
bills to the market, and consequently the
the authority granted by the amendment has
never been used. The German market is
notably deficient in this kind of security, which
of itself would help provide a medium for the
investment of public funds arising from other
branches of the public administration. The
development of an adequate market for the
highest type of short-term obligations is a
matter of importance, furthermore, to the
credit situation as a whole.
The general changes in respect to public
funds administration have already been noted.
The diminution of the funds at the disposal
of the authorities in charge of public and
quasi-public enterprises should lead, in due
course, to closer relations with the Reichsbank
if for no other reason than that the Reichsbank
serves as a source of credit. Some special
problems, however, will require attention, as
for example, the handling of the funds accumulating under the new unemployment in-
JANUARY, 192S
41
FEDERAL RESERVE BULLETIN
surance law. The arrangement, moreover, internal loan. The total was substantially
between the Verkehrs-Kreditbank and the five times the amount of the bond issues of
Gold Discount Bank for handling a portion private concerns, chiefly industrial enterprises.
of the funds of the railway company, which The total issues of bonds based on mortgages
was described in the interim report, is still on have amounted during the period to about
a temporary basis, as is the Gold Discount 1,325 millions; these are almost exclusively the
Bank itself.
so-called Pfandbriefe, which are secured by
The present position of the Verkehrs-Kredit- mortgages on real estate including agricultural
bank, in relation to the finances of the land, and are sold from time to time and at
railway company, has already been discussed varying prices according to the market.
in an earlier chapter of this report. There
BOND ISSUES ON THE GERMAN MARKET
is also the question of the Reichs-KreditGesellschaft, which is indirectly owned by the
[Face value in millions of reichsmarks]
Reich and operates as an ordinary banking
Eeal estate
institution in competition with the private
credit
banks. Its position has been summarized in
institutions, Giroprevious reports, and apparently remains
verbande
and related
unchanged.
institutions
6-g
Volume of domestic credit.—Full use has been
made during the past year of such credit facilities as the internal market afforded, but these
§3
!
facilities have varied widely from one branch
a!
of the credit market to another. For nine
months the market for internal capital issues 1907-1913 quarterly average
29
197
620
100
293
First quarter
12
304
21
337
has been very narrow, whereas the volume of 1925—Second quarter
11
288
42
346
bank credit has continued to expand. The
Third quarter
10
124
24
158
26
Fourth quarter
5
124
187
dislocation between these two sections of the 1926—First quarter
9
290
40
436
337
l 77
Second quarter
956
165
credit market, which appeared in a fair way
451
Third quarter
827
92
102
180
to disappear a year ago, reasserted itself when
550
Fourth quarter
169
141 1,053
167
534
203
523
86 1,356
the long-term market was overtaxed in the 1927—First quarter
476
774
Second quarter
68
133
97
313
392
33
35
Third quarter
6
first quarter of 1927, and has continued ever
66
74
October
since. The open market for bills has scarcely
existed except as the Reichsbank in its capacity
Including 40 million reichsmarks of the Klbckner Werke A. G., the
as commissioner has been a buj^er for the distribution of which over the various months is not known.
account of certain of the public offices.
Issues of shares, as tabulated by the statisThe revival of the domestic market for captical office, have found a
the
ital issues, which for a time furnished one of the volume of offerings, while fair market; not
limited, has
most hopeful signs of German reconstruction, fluctuated in the same degree as in the case of
began tentatively in February, 1926, reached
its maximum about a year later, and then bonds.
SHARE ISSUES
passed into a decline. The turning point was
[Price actually paid in millions of reichsmarks]
the issue in February, 1927, of the internal loan
of the Reich in the nominal amount of 500 mil1927/
1925
1926
lion reichsmarks, but before that offering was
made numerous internal loans of the States and First quarter
._ __•
219
379
99
quarter
142
120
432,
communes had drained off a large part of the Secondquarter
Third
305
151
248
funds available in the market. In the second Fourth quarter
374
149
i ioy
and third quarters of 1927, the only issues of
Total
2 1,168
898
661
important size were offerings by mortgage
3
banks and other real estate credit institutions
1 October only.
10 months only.
of bonds based on mortgages. The following
table is made up from figures published by the
The fundamental importance of increasing
Reich statistical office.
agricultural production, in order not only to
The loans of the Reich, the States, and the reduce the amount of foodstuffs imported from
communes, as reported by the statistical abroad but to improve the well-being of a
office for the first nine months of 1927, large section of the German population, has
amounted to approximately 1,000 millions, of led to vigorous efforts to supply new credit
which half was accounted for by the Reich facilities for agriculture and to refund its short
P
1
42
FEDERAL RESERVE BULLETIN
JANUARY,
1928
debt. Progress has been made during the last might be met. Even after the repayment of
these bills, agriculture is under a continuing
year in both directions.
charge of 60 to 80 millions a year for the further
AGRICULTURAL C R E D I T
retirement of Rentenbank notes.
The total of 5,114 millions of agricultural
[In millions of reichsmarks]
credits listed in the table given above leaves
Dec. 31, June 30, Dec. 31, June 30, Oct. 31, out of account two important parts of the
1927
1927
1925
1926
1926
existing agricultural debt. The Institut fur
Konjunk turf orschung estimates in round fig2,667 ures that at the end of 1926 there were 1,800
1,465
Mortgage credits
2,048 2,493
1,011
92
Intermediate credits
47
147
26
72
2,332
2,158
2,194
Short-term credits
1,893
2,300 millions of additional floating debts, including
5,114 merchandise debts; by now this figure has
3,195
Total .
3,706
4,917
4,013
presumably been somewhat reduced because of
conversion or repayment. In addition, also,
The foregoing table, made up from figures agriculture has revalorized remainder of its
published by the Institut fur Konjunkturfor- old mortgage debt, which is estimated to have
schung, shows that the principal changes during amounted before the war to around 13,000
the last two years have had to do with the millions. This debt has now been reduced to
aggregate of mortgage credits, which has around 3,500 millions.
steadily increased. In the last year the proExcept as it receives support from the
portion of mortgage credit to the total reported Reichsbank, through its purchases of bills for
borrowings of agriculture has risen from 46 to the account of certain public offices, an open
52 per cent, owing less to long-term funds discount market in Germany can scarcely be
raised on the domestic market than to funds said to exist at all. This is owing not only to
borrowed abroad. The two loans of the a narrow demand but to a very limited supply
Rentenbank Credit Institution issued in 1927 of prime bankers7 acceptances. The whole
in the nominal amount of 336 million reichs- amount of bills circulating on the private dismarks were not fully available during the count market probably does not exceed 600
period covered by the table.
million reichsmarks, and of that amount by
Apparently the increase in the actual amount far the largest proportion is held by the Reichsof short-term credits since the end of 1926 is to bank as commissioner. The Reich has not
be explained in part on the ground that heavy yet issued treasury bills and for the most part
commercial credits given for the supply of the States and communes depend upon bank
machinery, fertilizer, and other goods have credit for short-term requirements.
found their way into the reported figures,
New tendencies have been at work to restrict
which also include the Reichsbank's holdings the supply of bills. Large industrial and comof bills covering the supply of goods to farmers. mercial concerns have formed the practice of
On the other hand a substantial amount of keeping larger cash balances than in pre-war
short credit not previously included in the times and are thereby enabled in a measure to
statistics is stated to have been converted in finance themselves. The high rates carried in
the interval into mortgage credits.
the domestic market have resulted also in an
Notwithstanding the efforts made, agricul- increased dependence upon foreign credit, and
ture has still to face a serious problem in the in some branches of the exporting industries
repayment of credits falling due in the near transactions are financed by the importer
future. The relatively high prices at which either in his own country or in centers where
the last crop was sold have been of some rates are favorable. Furthermore, as in some
assistance, but there remains a certain volume other markets, a tendency has developed to
of agricultural debts which for the time being rely upon bank credit rather than upon such
are not liquid. On November 30, 1927, as credit as is available in the open market.
will be seen from the section on the currency,
The investor, for his part, has found little
the Rentenbank was due to pay nearly 240 to attract him to the open discount market.
millions into the retirement fund for Renten- Rates carried by bills in the so-called private
bank notes, representing the remainder of the discount market often fall below but almost
final installment of agricultural bills then never equal the Reichsbank discount rate,
maturing. Agriculture was able to pay only a and have usually proved themselves lower than
part of these maturing bills, and a substantial other rates for money. Collateral loans on
amount had to be provided for by other means, the stock market, for example, frequently
i n order that the full requirements of the law carry rates V/^ to 2 per cent higher than bills.
43
FEDERAL RESERVE BULLETIN
JANUARY, 1928
The main field of expansion, in so far as the past year, with the exception of a period in
domestic credit is concerned, has been in credit May and June when the policy of restricting
given by the banks. How much of this ex- stock market credits was instituted. The depansion has been in the nature of lending and cline during these two months was neutralized,
relending deposits received from abroad can not from whatever cause, during the next bibe stated, because the periodical returns made monthly period, and then during September
by the banks do not distinguish deposits so de- and October a further sharp rise brought the
rived; but more or less casual estimates indi- total to a new maximum since stabilization.
cate that the inflow of foreign deposits was The volume of credit reported by the six banks
heavy during the first half of 1927. There- increased 1,350 million reichsmarks or 26 per
after, particularly when the proceeds of capital cent during the year ended October 31, 1927.
issues began again to come in, acceptance of Of this increase less than 100 millions was due
deposits in foreign currencies became less gen- to the growth of the bill portfolio.
eral, and among certain banks the policy was
The "Glaubiger," which are composed mainly
introduced of declining them altogether. In of time and demand deposits, have moved in
some cases it appears that proceeds of foreign a course almost exactly parallel to that of
loans have been used to repay foreign currency credits during the past three years. The
increase for the year ended October 31, 1927,
deposits.
The following tabulation combines the prin- was 1,355 million reichsmarks or nearly 25 per
cipal items from the returns of six private cent. The acceptance liabilities of the banks rebanks, which together represent about three- main low and have shown no increase during
quarters of the nonpublic banking strength of the past six months, but they are 123 millions,
Germany. The infrequency with which these or nearly 47 per cent, higher than a year ago.
The loans of the principal State and proreturns are published and the period of time
which elapses between the date of the state- vincial banks have shown a somewhat larger
ment and the date of publication take away relative expansion during the past year than
much of the value to the German economy those of the private banks whose statements
which these returns might otherwise have. were summarized above. The increase in
Returns are published once in two months and, credits during the 12 months ending October
except in the case of the December 31 state- 31, 1927, for 20 State and provincial banks,
ment, become available one month after the including the Prussian State Bank, known as
statement date; in the case of the December 31 the Seehandlung, was 480 million reichsmarks,
statement it has proved to be impossible to or 28 per cent. This is in striking contrast
assemble the annual reports from these six re- to the previous 12-month period during which
porting banks until some three months after the credits of the State banks remained almost
the end of the year. Steps are now under way at a standstill/ The "Glaubiger," or deposits
to revise the make-up of the statements them- have shown a similar expansion for the year.
selves; it would add much to their utility if
they were produced frequently and promptly, T W E N T Y S T A T E AND EPROVINCIAL. B A N K S , I N C L U D I N G
S EHANDLUNG
for in that case they would furnish a guide to
[In millions of reichsmarks]
the credit situation which the Germany
economy now lacks.
Six
PRIVATE
Oct. Apr.
Oct.
June
Aug.
31,1926 30,1927 30,1927 31,1927 31,1927
BANKS
[In millions of reichsmarks]
Jan. 1, Oct. 31,'Dec. 31,i June 30, Oct. 31,
1927
1924
1927
1926
1926
Cash and amounts due from
banks and bankers
Bills and treasury notes
Loans and ad vanccs
"Glaubiger"—mainly time
and demand deposits
Acceptance liabilities...
!
!
565
912 | 1,048
j
42
1,413 j 1,556
|
609
3,787 ; 4,024
.
j.
|
\
j 1,058 | 5,517; 5,970
!
2|
264 i
316
1,061
1,373
4, 660
1,137
1, 509
5,042
I
Cash and amounts due from
banks and bankers
_.
370
Bills and treasury notes
380
Loans and advances
I 1,346
"Glaubiger"—mainly time |
and demand deposits
I 2, 058
253
491
1,481
234
474
1, 617
324
428
1,652
300
410
1,796
2,247
2,319
2,421
2,521
The rate of expansion in the credits of the
Girozentralen, the central institutions through
6,409
6,872 which the various savings offices and communal
387
banks are interrelated, has been greatly reduced during the past six months and the total
From the foregoing table it appears that the increase for the year was considerably less than
rapid expansion of private bank credit noted during the previous twelve-month period. The
in previous reports has continued throughout credits are granted largely out the proceeds of
44
FEDERAL RESERVE BULLETIN
long-term loans issued by the Girozentralen
and the decline in their rate of increase corresponds with a period of comparative inactivity
on the market for new security issues. There
has been some disposition during the year on
the part of the Girozentralen to restrict their
ordinary banking activities.
FIFTEEN GIROZENTRALEN
[In millions of reichsmarks]
Oct.
31,1926
Cash and amounts due from
banks and bankers
Bills and treasury notes
_
Loans and advances
44
GISubiger "—mainly time
and demand deposits
Apr.
30,1927
June
30,1927
Aug.
Oct.
31,1927
31,1927
207
165
1,300
252
154
1,550
194
133
1,638
266
116
1,707
240
104
1,742
1,127
1,218
1,193
1,261
1,236
JANUARY, 1928
SAVINGS DEPOSITS IN GERMANY
[End of monthfiguresin millions of reichmarks]
Month
Savings
deposits to month
increase
1926 average
1926—November.
December..
1927—January
February-_
March
April
May
June
July
August
September.
October
2.434.0
121.8
2.956.1
3,090.8
i 3,381.1
3, 572. 8
3, 718. 8
3,854. 0
3, 965. 6
4,022. 7
4,122. 4
4,245. 9
4,340.3
4,444. 4
124.2
134.7
i 290.3
191.7
146.0
135.2
111.6
57.1
99.7
123.5
94.4
104.1
i Including interest.
The savings reported by the Sparkassen constitute of couse only a portion of the annual
The statements of the public banks covered savings fund of Germany, but they are the
in the foregoing tabulations are issued once in only part susceptible of approximately accurate
two months, and one month after the respective statement. Even the Sparkassen savings are
statement dates. In this the publications perhaps open to qualification on the score that
correspond with those of the private banks, other funds occasionally find their way into
but December 31 figures are not assembled in these accounts, but the savings offices endeavor
such a way that they can be combined into to make the distinction as clear as possible.
composite statements. It may be hoped that As to other components of the savings fund as
such changes as are to be effected in the private a whole, such as insurance and business profits
bank statements will be made to apply when- reinvested, no accurate figures are available.
ever possible to the statements of the public
The German currency.—The German curbanks also. Up to the present, it wdll be rency, the stability of which was one of the
recalled, the Verkehrs-Kreditbank and the primary objects of the experts' plan, continues
Reichs-Kredit-Gesellschaft have limited their to satisfy all the requirements of the gold
statements to annual reports.
standard. In its external value, as measured
Savings deposits in Germany as reported by in the foreign exchanges, it has been for many
the savings offices (Sparkassen) have increased weeks above parity with the other principal
during the past six months at the rate on the gold currencies of the world, the result of the
average of 100 million reichsmarks a month. heavy inflow of credit from abroad and not the
This is much above the monthly increase in reflection of a favorable trade balance or a fallpre-war years but lower than the average for ing price level. On the contrary, the level of
1926, or the first four months of 1927. It is prices, which furnishes the measure of the inalso slightly lower, as a rule, than during the ternal value of the currency, has risen; but up
months of depression in 1926. Such a falling to the present the decline in the purchasing
off in times of business activity was entirely powder of the currency is to be regarded not so
characteristic of the course of savings deposits much as a matter already of grave consequence
in Germany before the war. At the end of as a tendency to be taken into serious account
October, 1927, the total was about 23 per cent in fixing, borrowing, and spending policies, particularly on the part of the public authorities.
of the accumulation in 1913.
Except for such influences as the seasons
Until recently the private banks in Germany
had not established savings accounts, although exert, the volume of the German currency has
in the payment of interest they have distin- continued to rise with remarkable regularity
guished between demand deposits and time de- ever since stabilization. The total circulation
posits. But as from November 1, 1927, the has now reached about the same level as in
Berlin Bankers Association (Stempelvereini- 1913, when it fluctuated around 6,000 millions.
gung) has agreed that its members may take Whether the various factors of difference besavings deposits at 5 per cent interest. This tween the pre-war period and the present, such
rate compares with a present rate of 4 ^ per as a higher world price level, a more general use
of checks and other means of settlement, the
cent at the savings offices.
JANUARY, 1928
disappearance of gold from the circulation, a
smaller German territory at home and abroad
and a smaller population, offset one another in
such a way as to make the 1913 circulation suit
present conditions of production and trade,
can not now be foreseen. A better test is more
likely to be the course which German prices
take in comparison with prices in gold standard
countries.
The gradual change in the composition of the
currency noted in previous years has continued during the past twelve months; that is,
the volume of Reichsbank notes and coins has
continued to increase while Rentenbank notes
have been further reduced. Reichsbank notes
composed nearly 70 per cent of the total circulation at the end of November, 1927, as compared with about 62 per cent a year before.
During that period Reichsbank notes increased
800 million reichsmarks or about 300 millions
more than the total increase in circulation, due
to the fact that Reichsbank notes replaced the
greater part of the Rentenbank notes withdrawn from circulation. Reichsbank notes
are practically the only elastic element in the
currency and after the circulation of coins has
reached the saturation point any changes in
currency requirements must be reflected almost
entirely in changes in the volume of Reichsbank
notes. Outside of the Rentenbank notes which
are due to be retired within the next seven
years, the inelastic element of the currency is
relatively small, consisting of notes of private
banks of issue and coins. The maximum
amount which the private note banks may issue
is 194 million reichsmarks and the amount in
actual circulation during the year ended November 30, 1927, varied between 172 and 189
millions.
Coins in circulation increased 108 million
reichsmarks during the year, due in part to
putting into circulation new 5-reichsmark
pieces, which are designed to replace the 5rentenmark notes of the Rentenbank. On
October 31, 1927, there were 35 million reichsmarks of these new 5-reichsmark pieces in
circulation, nearly all of which had been issued
in September and October. Altogether, the
coins in circulation now amount to nearly 13
reichsmarks per head of the population as
against a legal maximum of 20 reichsmarks,
exclusive of gold coins, of which none are now
in circulation. Further issues of 5-reichsmark
coins are to be expected, since at the end of
October there were still 253 millions of Rentenbank notes of that denomination in circu-
45
FEDERAL RESERVE BULLETIN
lation. But for smaller coins the needs of the
public are apparently already well supplied.
Substantial progress was made during the
last six months in reducing the Reichsbank's
stock of unissued or redundant coins. On
November 30, 1927, the Reichsbank held 55
million reichsmarks of such coins, as compared
with about 98 millions at the end of May.
This reduction was due in part to the action
of the Reich in taking back 50-pfennig pieces
held by the Reichsbank but unfit for circulation. New 50-pfennig coins are now in process of minting and some have appeared in
circulation.
GERMAN CIRCULATION
[End of month figures in millions of reichsmarks]
Reichs- Renten- Privatebank
bank
bank Coins
notes
notes
notes
1925 average
1926 average
2,513. 8 1,621.4
3,132. 0 1,290.4
1926—November.
December..
1927—January
February. _
March
April
May
3,374. 5
3, 735. 5
3,409. 6
3,465. 2
3, 588. 7
3, 676. 2
3, 719. 2
3,815.2
June
July
3, 928. 2
August
3, 934. 7
September. 4,182.4
October l 4,230. 6
November 4,181. 3
1,199. 0
1,164.0
1,108.1
1,114.0
1,095. 5
1,060. 2
1, 033. 2
1,017. 1
1,008. 2
1,007. 2
988.9
896.3
780.7
Total
Percentage
of
Rentenbank
notes
in the
total
171.6
177.7
490.1 4, 796. 9
655.0 5,255.1
33.8
24.6
175.3
180.6
172.3
177.2
181.7
182.9
185.9
188.8
185.4
184.7
188.3
188.1
187.0
692.2
749.6
721.1
720.9
723.4
717.8
722.8
725.6
733. 5
740.2
762.7
788.7
801.0
22.0
20.0
20.5
20. a
19.6
18.8
18.3
17.7
17.2
17.2
16.2
14.7
13.1
5,441. 0
5,829. 7
5,411.1
5,477. 3
5, 589. 3
5,637.1
5,661.1
5,746. 7
5,855 3
5,866. 8
6,122. 3
6,103. 7
5, 950. 0
i Provisional figures.
Rentenbank notes composed about 13 per
cent of the total circulation at the end of November, 1927, compared with about 22 per
cent a year before. Up to the end of October,
1927, the total redemption of Rentenbank
notes had aggregated 1,059 million rentenmarks. The funds for redemption came from
the following sources:
[In millions]
Interest on the general mortgage on agricultural land
Payments by the Reich
Share of the Reich in Reichsbank earnings
Repayments of agricultural bills
Total
195
180
72
612
1, 059
The bills last mentioned in the foregoing
summary were part of the so-called economic
credits granted in the early days of stabiliza-
46
FEDERAL RESERVE BULLETIN
tion through the medium of the Reichsbank
and the private banks of issue. They were
mainly for the benefit of agriculture. On
October 11, 1924, the date when the Ren tenbank liquidation law went into effect, there
were outstanding in virtue of these credits
880,334,583 rentenmark notes of equal value
with reichsmarks. The law provided that
these credits should mature in equal installments by November 30 of the three years 1925,
1926, and 1927, and that the proceeds should
be used for the retirement of Rentenbank
notes.
|K The repayment of the 1927 installment of
approximately 293 millions was in part anticipated. In its most recent statement, that for
October 31, the Rentenbank reported that the
credits outstanding amounted to 238 millions
and that 25 millions of the November 30 installment had already been paid into the retirement funds. On the due date the last
part of the final installment was paid in full,
but agriculture was able to repay in cash only
an unstated fraction of the amount. A considerable part of it was covered through the
JANUARY,
1928
help of other banks, among them the Rentenbank Credit Institution (as distinguished from
the Rentenbank itself), the Gold Discount
Bank and the Prussian Zentralgenossenschaftskasse.
With this retirement, the redemption of
Rentenbank notes reached the total amount
of 1,327 millions, plus such other minor contributions as were payable during the month
of November. This is about 100 millions less
than the organizing committee of the Reichsbank expected would take place in the first
three years. Their estimate, which was given
in a letter to the Reparation Commission on
July 11, 1924, fixed the total at about 1,440
millions. But they included an item of 110
millions for profits on these credits, which
apparently the Rentenbank has not utilized
in the way outlined, but has applied, as appears
from its annual reports, toward meeting the
capital amount of the installments themselves
or for the benefit of agriculture. The application of the interest receipts in this way was
the result of an agreement between the Reich,
the Reichsbank, and the Rentenbank.
47
FEDERAL RESERVE BULLETIN
JANUARY, 192?
FINANCIAL STATISTICS FOR FOREIGN COUNTRIES
CONDITION OF CENTRAL BANKS
[Figures are for the last report date of monthJ
1927
November
Bank of England (millions of
pounds sterling):
Issue departmentGold coin and bullion
Notes issued
Banking department—
Gold and silver coin
Bank notes
Government securities
Other securities
Public deposits
Other deposits
Ratio of gold and note reserve to deposit liabilities
(per cent)...
_
Bank notes in circulation x
Currency notes and certificates. _
Bank of France1(millions of francs):
Gold reserve
_
-.
Silver reserve
Gold, silver, and foreign exchangeCredits abroad
Loans and discounts
Advances to the Government
Miscellaneous assets
_
Note circulation
_
Total deposits
_
German Relchsbank (millions of
reichsmarks):
Gold at home
Gold abroad
_
Reserves in foreign exchange
Bills of exchange and checks
Miscellaneous assets
Deposits
Reichsmarks in circulation
Rentenmarks in circulation
Bank of Italy (millions of lire):
Gold reserve...
_
Credit and balances abroad
Loans and discounts
_
Advances to the Government
Note circulation for commerce. __
Note circulation for the State
Total deposits
Bank of Japan (millions of yen):
Gold
Advances and discounts
Advances on foreign bills
Government bonds
Total note and deposit liabilities.Notes issued
Total deposits
"
_
National Bank of Bulgaria (mil148.6
168.3
150.3
170.0
149.5
169.2
151.4
171.2
1.3
31.4
41.3
57.4
18.4
95.2
1.5
34.3
40.7
53.0
21.0
90.8
1.6 j
32.7
56.3 |
50.9 I
25.7 |
97.5 i
28.9
80.7
295.8
32.0
79.5
292.5
27.9 |
80.3
294.8
343
2,355
58
3,482
24,450
24,628
54,962
11,000
3,681
343
2,338
56
3, 296
24,850
24, 080
54, 700
10, 786
i
3,682
343
2,282
58
3,567
24,400
23,733
54,156
10,439
1,784
73
282
2,483
512
485
4,181
1,785
67
161
2,802
571
608
4,231
1,021
1,174
1,546
5,116
4,227
13,757
4,227
3,259
1,174
1,548
5,623
4,227
13,865
4,227
3,187
1,173
1,478
5,931
4,227
13,796
4,227
3,422
1,063
913
10
153
2,252
1,237
1,015
1,063
927
15
159
2,291
1,320
972
1,063
903
5
167
2,306
1,163
1,142
1,786 |
67 |
154 !
2,746
494
630
4,182
1,041
1.5
33.2
33.3
74.4
23.8
100.8
27.9
81.8
284.7
3,684
340
1,450
82
6,514
35,700
4,832
53,263
4,385
1,578
177
418
1,286
581
528
3,374
1,175
1,141
1,052
7,616
4,229
13,977
4,229
2,939
1,274
648
923
4,514
3,902
2,898
Central Bank of Cbile (millions of
pesos):
Gold at home
_.
Gold abroad
Loans and discounts
Note circulation
Deposits
_
1,266
602
1,105
4,516
4,104 I
2,719 *
43
607
1,732
5,450
3,659
3,308
61
422
27
256
124
60
423
32
263
115
60 !
433 |
37
268
117 I
146
426
41
365
191
20,378
23,687
14,494
42,077
8,000
_
_
1,272
550
1,037
4,514
4,039
2,781
20,223
23, 683
13, 099
40,671
8,229
1,058
2,235
63
514
7,566
1,016
Bank of the Republic of Colombia (thousands of pesos):
Gold at home
Gold abroad
Loans and discounts..,
Note circulation
Deposits.—
Czechoslovak
National
!
i
!
j
|
18,413
17,983
12,885
37,784
6,362
20,314
23,077
13,849
40,182
8,892
1,058
2,133
94
1,057
2,132 !
142 |
1,034
1,789
221
519
7,662
659
522 j
7,650 !
620
7,442
1,247
18
41 !
19 i
38 I
18
17
16
35
4
Bank
(millions of Czechoslovak crowns):
Gold and silver
Foreign balances and currency...
Loans and advances
Assets of banking office in liquidation
_
Note circulation
Deposits
_
Bank of Danzig (millions of Danzig gulden):
Balances with Bank of England..
Foreign bills, etc
Loans and discounts
Note circulation
Deposits
i..
lions of kroner):
Gold
Foreign bills, etc
Loans and discounts
Note circulation
Deposits
__.
182
75
81
346
21
182
84
73
365
19
National Bank of Egypt (thou84
389
251
83
173
953
30
84
392
245
81
173
946
32
48
479
139
86
178
873
46
684
84
377
251
71
173
926
34
674
620
438
509
400
1,975
103
468
519
400
1,998
112
466
505
400
1,996
97
510
400
1,745
303
* Notes issued, less amounts held in banking deDartment and in currency note account.
1
Not including gold held abroad.
lions of leva):
Golds
Foreign bills, etc..
Loans and discounts
Advances to State
Note circulation
Deposits
National Bank of Denmark (mil1,058 !l
351 i!
51 ii
277;;
1,920
1,212 I
708 j
National Bank of Belgium (millions of belgas):
Gold
—
Foreign bills and balances in
gold
_
Domestic and foreign bills
Loans to State
Note circulation
Deposits
1926
SepNoNovember October tember vember
November
tember
Austrian National Bank (millions
of schillings):
Gold.
Foreign bills of the reserve
Other foreign bills
Domestic bills
Treasury bills.
Note circulation
Deposits
1927
1926
Sep
sands of Egyptian pounds sterling):
Gold.
English Government securities....
Egyptian Government securities.
Note circulationGovernment deposits
Other deposits
Bank of Estonia (millions of Estonian marks):
Gold..
._
Cash in foreign currency
Foreign correspondents' account
Foreign bills
Loans and discounts
Note circulation
Total deposits
_.
3
I
182
78 I
85 !
351 !
JLL
I
209
29
124
378
27
3,706
28,605
23,487
31,143
19,328
18,868
512
46
1,062
56
5,557
2,283
4,405
Figures previous to 1927 carried at par.
3,676
27,105
21,441
29,602
17,332
17, 529
3,527
25, 704
26,325
28, 370
20,882
15,047
512
39
843
58
5,632
2,248
4,283
512
40
576
76
5,600
2,048
4,290
505
26
177
89
6,073
1,921
4,518
48
FEDERAL RESERVE BULLETIN
JANUARY,
1928
CONDITION OF CENTRAL BANKS—Continued
1927
1927
1926
Sep- Novem'Novem- Octotember
ber
ber
! ber
Bank of Finland (millions of Finnish marks):
Gold
Balances abroad and foreign
credits
Foreign bills
._.
Domestic bills
State debts
Note circulation
Demand liabilities
318
319
321
328
1,390
49
611
122
1,447
651
1,325
63
577
122
1,483
685
1,231
69
592
124
1,476
491
1,006
101
564
154
1,296
527
2,433
3,893
3,038
5,126
4,105
2,377
3,822
3,351
4,763
4,253
197
93
310
115
273
477
261
224
169
117
193
144
287
447
247
186
184
25
139
321
75
22
108
327
68
National Bank of Greece (millions
of drachmae):
Gold and balances abroad
Government loans and securities.!
Loans and discounts
Note circulation
Total deposits
National Bank of Hungary (millions of pengo):
Gold
Foreign bills, etc
Loans and discounts
Advances to treasury
Other assets
Note circulation
Deposits
Miscellaneous liabilities
197
106
316
115
258
456
314
197
Bank of Java (millions of florins):
Gold
Foreign bills
Loans and discounts
Note circulation
Deposits
197
103
329
115
260
508
267
203
184
26
138
321
77
Bank of Latvia (millions of lats):
Gold
Foreign exchange reserve
Bills
Loans
Note circulation
Government deposits
Other deposits
Netherlands Bank (millions of
florins):
Gold...
Foreign bills
Loans and discounts
Note circulation
_
Deposits
145
283
811
67
Bank of Norway (millions of kroner):
Gold
Foreign balances and bills
Domestic credits._
Note circulation
Foreign deposits
Total deposits
147
41
256
318
5
101
Reserve Bank of Peru (thousands
oflibras):
Gold
Gold against demand deposits. _
Foreign exchange reserve
Note circulation
Deposits
1
Bank of Poland (millions of zlotys)
Gold at home
Gold abroad.
Foreign exchange, etc.—
Serving as note cover
All other
Loans and discounts
Note circulation
Currenct account of the Treasury.
Other current accounts
Bank of Portugal (millions of escudos):
Gold
Balances abroad
Bills
Note circulation
Deposits
_
277
231
Sep- NovemOctober
tember
ber
327
182
136
441
243
488
929
96
119
470
844
125
130
138
378
558
48
95
174
223
1,807
125
9
157
229
1,828
78
259
204
1,844
55
149
9,143
16.359
21,032
10,006
148
9,087
16,359
21,022
10,183
144
9,013
10,679
20,943
9,072
d e p a r t m e n t ; t h o u s a n d s of chervontsi):
18, 880 18,447 17, 363
Gold
7,881
Foreign currency
7,682
7,440
80,900 80,532 76,838
Loans and discounts
106,847 107,654 102, 657
B a n k notes
16,346
5,751
65, 672
88,433
651
230
465
940
398
246
National Bank of Rumania (millions of lei):
Gold*
Bills
Advances to State
Note circulation
Deposits
150
9,001
16,359
21,023
10,312
State Bank of Russia (note-issuing
National Bank of the Kingdom
of Serbs, Croats, and Slovenes
(millions of dinars):
Gold
Foreign notes and credits
Loans and discounts
Advances to State
Note circulation
Deposits-
1,580
2,966
5,702
1,187
382
1,550
2,966
5,793
1,294
384
1,543
2,966
5,763
1,310
85
361
1,433
2,966
5,896
609
7,393
7,325
621
7,713
7,359
7,536
6,390
1,362
8,446
6,308
7,992
6,186
1,646
8,586
7,063
7,144
5,592
876
7,779
5,151
2,603
685
33
453
1,213
4,129
1,035
2,603
678
33
509
1,258
4,193
990
2,598
678
39
464
1,241
4,142
985
2,557
676
31
697
1,667
4,286
975
231
232
228
519
104
231
228
225
522
95
231
216
285
560
225
169
268
512
80
451
52
343
841
462
46
362
861
101
471
26
374
877
84
443
17
55,422
99,655
62,641
76,562
55,421
South African Reserve Bank
(thousands of pounds sterling):
Gold
Foreign bills
Domestic bills
Note circulation
Total depositsBank of Spain (millions of pesetas):
Gold
Silver
Balances abroad
Bills discounted
Checks and drafts
418
Note circulation
182
Deposits
200
Bank of Sweden (millions of kronor):
Gold—
Foreign bills, etc
I
Loans and discounts
Note circulation
147 I
Deposits.
66 i
474
Swiss National Bank (millions of
321
francs):
30
Gold
Funds on demand abroad
Loans and discounts
Note circulation
Deposits
Bank of Lithuania (millions of
litas):
Gold
Foreign currency
Loans and discounts
Note circulation
Deposits
Bills
Novem
ber
4,156
260
758
1,816
5,894
521
386
128
304
854
40
147
% 23
268
324
5
4,198
218
748
1,769
5,938
437
127
273
796
35
147
31
266
325
5
97
4,199
217
750
1,724
5,949
435
4,803
228
690
1,462
6,193
460
Not including gold held abroad.
807
Bank of the Republic of Uruguay
(thousands of pesos):
Gold
Loans and discounts
Note circulation
Deposits
* Revised.
63,195
76,096
54,944
5 96, 010
63,547
68,47 6
JANUARY,
49
FEDERAL RESERVE BULLETIN
1928
CONDITION OF COMMERCIAL BANKS
[Figures are for the last report date of month except for London clearing banks, which are daily averages]
October
Sep- NovemNovem- October
tember
ber
ber
Three commercial
Nine London clearing banks
(millions of pounds sterling):
Money at call and short notice...
Advances and discounts
Investments
Deposits
Tokyo banks (millions of yen): 1
Cash on hand
Total loans
Total deposits
Total clearings
134
1,148
236
1,694
142
1,150
238
1,710
195
285
2 297
1 942
2,224
1 925
1,837
1,856
134
1,131
234
1,668
272
1,923
1,879
1,794
October
132
2,582
1,952
3,550
September August
October
70
1,312
461
533
69
1,288
446
536
j
186
172
167
2,405
2,347
2,295
112
192
109
183
106
186
71
1,248
417
506
187 j
2,257 '
1,888
56
1,896
54
92
87
121
2, 090
2, 056
(millions of Finnish marks):
Loans and discounts..
Due from abroad
Due to abroad .
Deposits
1
2
7,982
475
357
6,933
7,973
414
356
7,001
1,979
55
128
2,011
2,119 !
7,955
437
326
7,116
!
i
7,162 !
186
327 •
6,007 •
Joint-stock banks of Finland
12,659
5,198
23, 523
15,278
5,311
22,369
450
444
281
1,509
1,429
1,413
921
880
762
5,042
6,872
4,788
6,600
3,787
5,517
410
399
283
1,348
8,849
5,538
13, 756
2,533
1,217
8,895
5,544
13,342
2,460
_
1,635
83
152
1,837
96
235
1,242
8,897
5,. 454
2, 567
Joint-stock banks of Norway
(millions of kroner):
Loans and discounts
Due from foreign banks
Due to foreign banks
Rediscounts
Deposits
•
'••
1,904
62
12,656
5,074
23,636
1,633
92
170
1,626
86
174
138
131
133
178
1 726
1,754
1,789
1,890
4,141
278
129
71
3, 575
4,144
234
124
117
3,561
4,151
197
119
115
3 557
4,350
141
131
84
3, 556
1 785
2,859
1 774
2,849
1 761
2, 841
1 728
2,744
24
23
20
25
307
302
310
248
728
1,560
725
1,560
708
1,560
646
1,464
Joint-stock banks of Sweden
116
193
Joint-stock banks of Denmark
(millions of kroner):
Loans and discounts
Due from foreign banks
_
Due to foreign banks..
Deposits and current accounts
lions of lire):
Cash
- .
Bills discounted
D ue from correspondents
Deposits..
70
1,333
483
519
October
Four private banks of Italy (mil-
Chartered banks of Canada
(millions of dollars):
Gold coin and bullion 2
_.
Current loans and discounts
Money at call and short notice. _.
Public and railway securities
Note circulation
Individual deposits
Gold reserve against Dominion
notes
_
Dominion note circulation
September August
banks of
France (millions of francs):
Bills and national defense bonds
Loans and advances
Demand deposits.
Time deposits
Six Berlin banks (millions of reichsmarks):
Bills and treasury notes
. ..
Due from other banks
Miscellaneous loans
_
Deposits
Acceptances
118
1,106
252
1,648
1926
1927
1926
1927
1926
1927
(millions of kronor):
Loans and discounts
_
Foreign bills and credits abroad..
Due to foreign banks
Rediscounts
Deposits
Swiss Cantonal banks (millions
of francs):
Mortgages
Foreign bills
Due from banks and correspondents
Commercial deposits
Savings deDosits
Beginning in November figures are included for ten banks not previously covered by the reports.
Not including gold held abroad.
DISCOUNT RATES OF 33 CENTRAL BANKS
[Prevailing rates, with date of last change]
Country
Austria
Belgium
Bulgaria
Chile
Colombia
Czechoslovakia.
Danzig
Denmark
England
Rate
In effect
since—
6V2 Aug.
Nov.
Aug.
Dec.
May
Mar.
June
June
Apr.
10
ey2
7
5
6
5
25,1927
16,1927
31,1924
12,1927
15,1924
8,1927
21,1927
24,1926
21,1927
Country
Rate
Estonia... 8
Finland... 6
France
4
Germany _
Greece
10
Hungary.. 6
India
7
Italy
7
In effect
since—
Oct.
Nov.
Dec.
Oct.
June
Aug.
Dec.
June
Country
1,1926 Japan
24,1927 Java
29,1927 Latvia
4,1927 Lithuania,._
6,1927 Netherlands
26,1926 Norway
_
_
22,1927 Peru
18,1925 ! Poland
Rate
5.48
6
7
6
4H
5
6
8
In effect
since—
Oct.
May
Jan.
Nov.
Oct.
Nov.
Apr.
May
10,1927
3,1925
1,1927
9,1927
13,1927
1,1927
1,1923
13,1927
Country
Portugal
Rumania
Russia
South Africa
Spain
Sweden
Switzerland
Yugoslavia..
Rate
8
6
8
6
5
3H
3,H
6
In effect
since—
July
Sept.
Mar.
Sept.
Mar.
Jan.
Oct.
June
27,1926
4.1920
22,1927
10,1927
23,1923
1,1928
22,1925
23,1922
Changes: Central Bank of Chile from 7 to 6H P3r cent on December 12, 1927; Imperial Bank of India from 6 to 7 per cent on December 22,1927;
Bank of France from 5 to 4 per cent on December 29, 1927; Bank of Sweden from 4 to ZXA per cent on January 1, 1928.
50
FEDERAL RESERVE BULLETIN
JANUARY,
1928
MONEY RATES IN FOREIGN COUNTRIES
Switzerland
Month
1926
January
February
March
April
May
June
July__
August
September
October
NovemberDecember. -1927
January
February
March
April
May
June
July
August
SeptemberOctober
No v ember.._
1927
January,
February
March
April
May.
June
July.
August
September
October...
November
i For sources used, methods of quotation, and back figures, see the FEDERAL RESERVE BULLETIN for November, 1926. Rates for Belgium,
France, and Italy, added to this table in April, 1927, are from the same source as the figures for Switzerland—viz, Bulletin Mensuel, Banque
National 4aisse—and are quoted in the same way.
51
FEDERAL RESERVE BULLETIN
JANUARY, 1928
GOLD MOVEMENTS
[In thousands of dollars]
United States
Net
imports
or exports
Month
Imports
January
February..__
March
April
May
June
July
August
September
October
November...
December...
Total..
Exports
19,351
25,416
43,413
13,116
2,935
18,890
19,820
ll,979j
15,987!
8,857J
16,738
17,004
Germany
Net
Ex- imports Imor ex- ports
ports ports
Imports
3,087
16,264
5,517|
3,851
21,565 14,030|
4,225
9,561|
17,884
- 4 , 768,
1,393;
9,343 - 6 , 4 0 8 i
838'
15,544!
3,346
571!
626!
15,069 114,751!
29, 743 - 1 7 , 764! 10,631!
-7,094! 23,608:
23,081
7. 7011 36,343
1,156
7,727
9, Oil! 16,462
9,808! 18,407
7,196
213, 504 115,708
97,796 137,987;
823
740!
768!
604J
693,
631 ^
621!
634
702|
869,
902!
858 i
4,694
13,290
8,793
789]
145!
-60!
5i
9, 997:
22,906!
35,474|
15,560!
17,549j
22,021
16,809
6,278
7,188
18,687
16,103
19, 510
18,867
12,137
16,916
18,561
14,531
6,615
156
619
87
270
1,010
330
136
800
580
464
108
2,014!
60!
656;
150|
174
2,613;
11,174
6,483|
10,108
9,198
-6,472
3,699
11,835
11,222
13,300
9,908
7,120
-4,346
-6,029
-4,078
8,720 129, 2671 187,608j 132,140
55, 468!
35
20!
28|
200{
fill
525 13,563; 11,514! 18,181 -6,667, 1,303
659 9,670! 15,742 ; 15,480
411
262
840 5,736J 7,526i 6,894!
488!
632
771
1641 24, 678!
3,735 20,943
281!
673
32; 16,464; 26,580 -10,116,
47
662;
49
9,674 -1,239 2,653
8,4351
685!
20; 13,071i
6,061
203
7,010
680! 10,579 : 21,469! 5,782 15,687!
105|
876;
6071
7,637
125!
8,381!
744'
4, 726! 1, 400!
189
6,126!
969;
699;
433
15,012! 21, 709
44,465i 14,088
59,355 14,890
2,414
19,895 10,329:
22, 309
5,625,
6,576
10,758
116,382
2, 592
935!
14,503
11,911
34,212
31,702]
705
2,610.
12,771
711
14,611
1,840
8,935
10, 738
1,803
705
7,877
1,524
6, 353 11, 259
12, 9791 24,444 - 1 1 , 4 6 5
1, 483
1,668
2,056 10, 698 - 8 , 642
2,082' 55,266 + 5 3 , 1 8 4 .
210,000 2 76,000 2-66,000'.
2
1 Revised.
6,580
-327
599
59!
70i
959|
-1,684:
76,
144;
430>
290!
- 2 , 505
Net
imports
or exports
-19, 952
-14,892
- 8 , 479
-29, 737
-18,003 i
-21,002|
-22, 668j
-15, 723|
- 8 , 686
-29,082
-13,376
-10, 553
8,619
7,062
17,233
6,838
12,317
7,241
4,076
4,404
4,839
4,004
3,466
3,530
4,691! -212,152
83,627
1,228' -17, 522:
411' -14,079'
449 -20,718
1,334 -1,053 -23,146
3,015 -2,968 -15,717,
5,190 -2,537; -17,470!
4,623 -4,420.
2.477 -2,372 .
' 47
78,.
35
154.
102
331.
1927
January
February
March
April
May
June
July
August
September...
October
November...
December. „._
India
Net
Net
Ex- imports imports
or exor exports
ports
ports
Net
Ex- imports Imor ex- ports
ports
P(orts
11,913
7,611
12,750
3,489
6,852
4,881
6,210
8,959
5,017
21,262
24,590
18, 609
South
Africa
Netherlands
Great Britain
2.518
6,543
10,041
4,941
4,890
7.122
5,936
2,860
3,315
2,685
74
Preliminary estimate.
MOVEMENTS TO AND FROM UNITED STATES
MOVEMENTS TO AND FROM GREAT BRITAIN
[In thousands.of dollars]
[In thousands of dollars]
1926
1927
Country of origin
or destination
November
venaber
Imports Exports Imports' Exports ImportsjExports
England .
France
. .
Germany
Netherlands
Canada .
Central America
Mexico...
Argentina
Brazil
Chile
Colombia
Ecuador __
Peru
Australia
British India .
British Malaya
China and Hong
Kong _.
Dutch East Indies .
Japan _
Philippine Islands
All other countries..
Total
1 Revised.
1
28
716
100
512
20,059
581
39 394
21 048
1
15 075
54,364
1,140
5,777
23
33,000
30
158
108
190
40
ioi"
296
83
2,082
14 i
Country of origin
or destination
1 212 i
18
'351 1
1 ! 47, 550
13,994 ;
5
25,657 1 82,543
1,516
253
6,416 23,913
1 8
31,649
33 000
21 180
1,663
1 001
1,307
2,644
647
380
51,119
;
5
298"
; 2,612
6, 540
1,674
5,562
1,380 1 1,309
1,707
20,000
14,000
1,458
1,990
5
606 ! 1,456 1 1,157
55,266 197,104 123,606 ,213, 504
870
350
Il8
7 000
1,387
2,130
2,235
491
21, 917
1926
1927
! Calendar year
42,392
3,855
6,202
438
369
2 019
6
1,700
""578
3,332
4,495
2,231
60
463
115, 708
November
Imports
44
France
Netherlands
142
Russia
Spain and Canaries
Switzerland
United States
18
South America
British India
British Malaya
Egypt
121
Rhodesia
14,360
Transvaal
281
West Africa.
47
All other ..countries..
Total
15,012
Exports
463
424
122
1,281
1,115
490
374
17,439
JanuaryNovember
1
Im- | Exports ! ports
Calendar year
Imports
Exports
802
627 ! 4,548
2,291 ! 6,294
1,175
1,049
7,731 12,349
| 7,437
J 5,574
180
50 1 28,042
108
2,012 I 6,959
__. ! 11,455
i 2,907
i 3,549
5,453 j
_. 9,842
153, 240
124,214 !
6,293
4,485 i
19
3,557
8,237 ! 41,945
--is 36
73,207
126,463 187, 607
132,138
21, 709 148,419
8,257
14,704
5,144
2,099
4,242
1,138
1,543
12,818
7,752
1,199
52
FEDERAL RESERVE BULLETIN
JANUARI, 1928
FOREIGN EXCHANGE RATES
[Monthly averages of daily quotations. 1
In cents per unit of foreign currency]
EUROPE
Austria
(schilling)
Belgium
(belga)
Bulgaria
(lev)
Czechoslo- Denmark
vakia
(krone)
(crown)
19.30
Par value
14.07
13.90
1926—December
1927—May
June
July
August
September...
October
November...
December
14. 0802
14.0674
14.0625
14.0695
14.0629
14.0816
14. 0820
14.0874
14.0946
13.9108
13.8968
13.8900
13.8980
13.9107
13. 9220
13.9260
13.9467
13.9885
.7244
.7238
.7218
.7232
.7230
.7246
.7229
.7230
.7235
England
(pound)
Finland
(markka)
France
(franc)
19.30
26.80
2. 9620
2.9615
2.9616
2.9626
2. 9627
2.9626
2. 9627
2.9629
2. 9630
486.65
2.52
26. 6369
26.6784
26. 7207
26.7276
26. 7785
26. 7680
26. 7932
26.7988
26. 8192
485.1250
485. 7020
485.6088
485. 5056
486. 0233
486. 3528
486.9676
487.4012
488. 2542
2. 5210
2. 5201
2. 5194
2. 5196
2.5189
2. 5189
2. 5187
2. 5191
2. 5191
Italy
(lira)
Par value
1926—December
1927—May
June
.
July...
August
September...
October
•_.
November...
December
Netherlands
(florin)
Norway
(krone)
Poland
(zloty)
Portugal
(escudo)
19.30
40.20
26.80
11.22
108.05
19.30
39. 9927
40. 0196
40. 0515
40.0600
40.0719
40. 0776
40.1920
40.3612
40. 4381
25. 2858
25.8360
25.8896
25.8352
25.9374
26. 3620
26. 3404
26.4871
26. 6169
11. 2665
11.3816
11.3065
11.2500
11.2240
11.2168
11. 2096
11. 2063
11. 2204
Russia 2
(chervonetz)
Rumania
(leu)
4. 4350
5.4016
5. 5819
5.4488
5.4396
5. 4432
5. 4616
5. 4458
5.3800
5.1196
5.1220
5.0419
5.0008
4. 9574
4.9288
4.9456
4.9396
4. 9550
Spain
(peseta)
514.60
23.82
23. 7958
23. 6924
23.6923
23.7428
23. 7859
23.8004
23.8624
23.8629
23. 8904
Sweden
(krona)
19.30
1. 2643
1.3211
1.3430
1.3232
1.3083
1. 3243
1.3262
1.3242
1.3294
Switzerland
(franc)
19.30
515. 0000
8
515. 0000
«515. 0000
3 515. 0000
8 515.0000
»515.0000
• 515. 0000
'514.1700
3
51.5. 0000
26.80
19.30
15.2365
17. 5yi2
17.1988
17.0856
16.9000
17.1504
17. 2540
16. 9400
16. 6623
3
.5206
.6176
.5964
.6094
.6163
.6181
.6193
.6155
.6188
NORTH AMERICA
3. 9492
3.9168
3.9169
3.9112
3.9193
3.9200
3. 9236
3.9288
3.9396
Germany
Hungary
Greece
(reichs(drachma) (pengo)
mark)
26. 7196
26. 7480
26.7792
26. 7784
26.8203
26.8752
26.9236
26.9246
27. 0015
19.3192
19.2324
19.2365
19.2528
19.2759
19.2816
19. 2868
19. 2850
19.3150
17.49
17. 5654
17. 4556
17.4438
17.4376
17.4363
17.4688
17.4624
17.4658
17. 4773
Yugoslavia
(dinar)
19.30
1. 7653
1.7579
1.7577
1.7585
1. 7596
1. 7604
1. 7607
1.7607
1.7615
SOUTH AMERICA
Argentina Bolivia J
(peso-gold) (boliviano)
Brazil
(milreis) i
Canada
(dollar)
Cuba
(peso)
Mexico
(peso)
Par value
100.00
100.00
49.85
96.48
38.93
32.44
1926—December
1927—May
June
July...
August... . . .
September...
October
November...
December
99. 9342
100. 0658
99. 9360
99. 8520
99.9404
100.0497
100.1099
100.1369
99.8974
99. 9150
99. 9606
99. 9150
99.9288
100.0073
99. 9524
99. 9387
99. 9289
99. 9154
46. 6718
46. 5867
46.4197
46. 5383
47.3931
47. 7219
47. 6667
47.9125
48. 4506
93. 2792
96.2008
96.4373
96. 5540
96.8448
97.1248
97.1572
97. 0521
97. 2304
33.7500
34. 0000
34.4231
34. 5950
34.7546
34.8000
34.8000
34.8000
34. 8000
11. 8542
11.8084
11.8050
11. 7916
11.8237
11.8596
11.9172
11.9333
11.9677
SOUTH
AMERICA—
continued
Chile
(peso)
12.17
12. 0362
12.0204
12. 0235
12. 0224
12.0292
12.0736
12.1712
12.1763
12. 2062
Colombia2 Ecuador *
(peso)
(sucre)
Peru «
(libra)
Uruguay
(peso)
97.33
20.00
486.65
103.42
97. 3969
97.4688
97.4196
97.5345
98.2798
97.9872
97. 4736
97. 4950
97. 7381
18. 3125
18. 3125
19. 6019
19. 5750
19.3750
19.3750
19. 3750
19.3750
19. 3750
357. 3269
364.6400
374.4231
374. 6000
374.9626
388. 5600
384.1600
376.1458
389. 8500
101. 2588
100. 7088
100.3708
99.1684
100.1381
100.4052
101.8796
103.3658
103. 8692
ASIA
AFRICA
Venezuela *
(bolivar)
China«
(Mexican
dollar)
China *
(Shanghai
tael)
Hong
Kong*
(dollar)
India
(rupee)
Japan
(yen)
Java'
(florin)
Persia
(kran)
Straits
Settlements
(Singapore
dollar)
Par value
19.30
48.11
66.85
47.77
36.50
49.85
40.20
9.46
56.78
1926—December
1927-May
June
July
August
September...
October
November.. _
December
19. 0508
18.7500
18. 7620
19.1280
19.1552
19.1700
19.1700
19.1700
19.1700
43. 7735
45.6136
45.5077
44.6004
43.3807
43. 9572
44. 7376
45. 5958
45.9092
58. 9704
62.1680
62. 7362
62.2760
60.3781
61. 2068
61.8328
63. 2663
63. 7884
47. 5938
49.2716
49.0742
48.9772
48.1600
48.4980
48. 8552
49. 7917
50.3085
36. 0465
36.2332
36.1973
36.1108
36.1252
36.3356
36.4092
36.4504
36. 7369
48. 9373
47.0832
46.6896
47.1312
47.3322
46.8248
46. 5664
45. 9796
46.1881
40. 2476
40.1638
40.2079
40.1963
40.1740
40.1675
40. 2618
40.4090
40. 5319
9. 2723
9. 5692
9. 6562
9.6976
9.6375
9.6132
55. 9400
55.9896
55.9807
55. 9600
55. 9711
55. 9908
56.0332
56.0687
56. 7269
Turkey
Egypt
(Turkish (Egyptian
pound)
pound)
439.65
50.1900
52.2232
51.9992
51.0544
49. 9774
50.9640
52.9624
52. 4871
494.31
497.3392
497.9792
497.8950
497.7768
498.2844
499.2900
499. 6888
1
Based on noon buying rates for cable transfers In New York as certified to the Treasury by the Federal Reserve Bank of New York, In
pursuance of the provisions of sec. 522 of the tariff act of 1921.
J
Averages based on daily quotations of closing rates as published by New York Journal of Commerce.
I Nominal.
4
Silver currency. Parity represents gold value of unit In 1913 computed by multiplying silver content of unit by New York average price
of silver for 1913. This average price was $0.61241 per fine ounce, which compares with an average price of $0.58267 for December, 1927, $0.57787 for
November, 1927, and $0.53778 for December, 1926. The corresponding London prices (converted at average rate of exchange) were $0.58765, $0.58244,
and $0.54046.
53
FEDERAL RESERVE BULLETIN
JANUARY, 1928
PRICE MOVEMENTS IN PRINCIPAL COUNTRIES
WHOLESALE PRICES
ALL COMMODITIES
United
States
(Bureau
of Lab or
Statistics)1
England
(Board
of
Trade)
Germany 3
(Federal
Statistical
Bureau)
1926
March
April
May
June
July
August
September
October
November
December
1927
January
February
March
April
May
June
July
August
September
October
November
December
856
854
858
846
848 i
851 i
845
850
837 !
839
838
Europe—C ontinued
Egypt South
(Cairo)! Africa
1926
March
April
May
June
July
August
September
October
November
December
134
133 i
128 >
129 !
129
129
129
129
130
130
i New index—1926=100.
1
First of month figures.
122
3 New index.
NOTE.—These indexes are in most cases published here on their original bases, usually 1913 or 1914, as determined by the various foreign statistical offices which compile the index numbers and furnish them to the Federal Reserve Board. In several cases, however, viz, France, Netherlands, Japan, New Zealand, and South Africa, they have been recomputed from original bases (1901-1910; 1901-1910; October, 1900; 1909-1913;
1910) to a 1913 base. Index numbers of commodity groups for most of the countries are also available in the office of the Division of Research
and Statistics and may be had upon request. Further information as to base periods, sources, numbers of commodities, and the period of the
month to which the figures refer may be found on pages 769-770 of the November, 1927, BULLETIN.
54
FEDERAL RESERVE BULLETIN
JANUARY, 1928
WHOLESALE PRICES—-Continued
GROUPS OF COMMODITIES
[Pre-war=100]
E N G L A N D - B O A R D OF T R A D E
ITALY—CHAMBER OF C O M M E R C E O F M I L A N
1927
SepNovember October tember August
All commodities
Total food
Cereals
Meat and fish._.
Other foods
Total, not food
Iron and steel...
Other minerals
and metals
Cotton.
Other textiles...
Miscellaneous...
July
November
141
152
152
138
166
135
114
141
163
156
138
164
136
116
142
153
157
142
160
136
116
141
151
167
136
162
136
117
141
154
156
134
171
135
118
152
157
156
153
161
150
135
114
167
161
144
113
172
159
144
114
178
159
142
115
168
158
142
»«
185
141
153
144
160
157
142
595
543
505
551
687
530
486
547
601
558
529
564
618
685
537
618
617
697
551
624
684
657
593
695
594
577
591
599
622
697
636
535
773
638
633
530
790
625
636
542
813
611
645
557
830
613
640
674
804
606
706
709
748
693
GERMANY—FEDERAL STATISTICAL BUREAU
All commodities
Total agricultural
products
Vegetable foods.
Cattle
Animal products
Fodder
Provisions
Total industrial raw
materials and
semi-finished
products
Coal
Iron..
Nonf e r r o u s
metals
Textiles.
Hides and
leather
_
Chemicals
Artificial fertilizers
Technical oils
and fats
Rubber
Paper materials
and paper
Building material....
Total
industrial
finished products.
Producers' goods
C o n s u m e r sr
goods
140
140
140
138
137
142
109
138
144
115
139
144
121
139
150
116
163
142
132
154
142
131
152
142
130
134
131
124
134
131
124
134
130
124
105
152
104
163
105
166
153
124
145
124
139
124
80
83
121
42
151
162
153
131
151
131
172
169
166
All commodities
Metals and coal
Textiles
Agricultural products
Dairy products
Groceries and tobacco
Meat
Building materials..
162
155
132
484
509
533
480
486
513
549
470
491
634
563
497
641
656
689
615
468
441
446
470
447
450
474
466
453
474
443
455
475
436
455
636
572
567
441
447
456
465
471
744
535
537
541
554
566
684
495
553
47_4
548
465
535
457
540
445
540
632
634
148
141
146
113
147
144
143
114
148
147
142
114
146
148
135
116
146
151
127
117
148
146
145
124
115
115
117
117
117
127
157
157
158
159
168
171
140
135
130
122
122
122
166
142
167
140
167
137
168
138
169
137
171
142
149
150
137
356
149
150
137
156
152
151
137
157
151
148
137
154
151
148
138
153
148
152
136
159
166
176
168
173
176
164
170
178
168
165
178
155
161
179
150
155
179
128
180
147
195
153
181
157
174
157
167
161
191
134
169
148
141
186
168
168
143
186
168
164
144
183
169
153
153
183
168
139
152
183
168
101
152
180
1927
1926
August
October
October
162
149
160
148
159
148
157
147
167
147
166
147
157
126
144
124
145
123
146
125
144
126
144
118
146
* First-of-month figures.
484
520
541
495
INDIA (CALCUTTA)—DEPARTMENT OF STATISTICS
SWITZERLAND t—DR. J. LORENZ
All commodities
Consumers' goods.._
Agricultural products
Industrial products.
All commodities
Vegetable products..
Animal products
Fuels and oils
Raw materials for
manufacture in
iron and metal
industry
Paper pulp and paper
.
Raw materials for
manufacture in
leather industry...
Raw and manufactured chemicals . . .
Raw materials
Semifinished materials . .
Finished materials..
Producers' goods
Consumers' goods.. .
151
161
484
525
549
496
121
42
152
All commodities
Total food
Vegetable foods.
Animal foods
All industrial products
Textiles
Chemicals
Minerals and
metals
Building materials
Other vegetable
products
Sundries
July
November
AUSTRALIA-BUREAU OF CENSUS AND STATISTICS
82
120
46
Novem- October Sep- August
tember
ber
SWEDEN—BOARD OF TRADE
FRANCE-STATISTICAL BUREAU
All commodities
All foods
Animal foods
Vegetable foods.
Sugar, coffee,
cocoa
All industrial material
Minerals
Textiles
Sundries
1926
1927
1926
All commodities
Cereals
Pulses
Tea
Other foods
Oil seeds _
Raw jute
Jute manufactures...
Raw cotton
Cotton manufactures .
...
Other textiles
Hides and skins
Metals
Other articles
Septteinber
147
133
155
180
172
142
87
146
180
150
136
155
181
170
145
92
156
201
151
142
158
182
171
145
114
161
181
150
138
152
188
169
151
108
152
185
149
140
155
179
171
155
90
139
169
144
140
157
150
157
133
86
146
136
161
127
121
129
149
163
123
109
133
153
158
124
102
130
160
155
127
102
130
161
154
129
110
132
155
161
127
107
135
145
July
June
JANUARY,
55
FEDERAL RESERVE BULLETIN
1928
RETAIL FOOD PRICES AND COST OF LIVING
RETAIL FOOD PRICES
[Pre-war=100]
European countries
Other countries
Month
1926
March
April
May.
June
July
August
SeptemberOctober
NovemberDecember.-
157
159
158
157
154
153
156
157
158
159
114
114
113
116
115
117
116
117
117
118
137
139
146
155
177
187
184
194
204
206
2,719
832
2,652
832
2,808
2,717
2,713
2,637
2,641
2,597
2,618 i 902
2,598 i 912
165
159
158
158
161
161
162
163
169
169
136
139
X.39
139
139
138
128
127
127
128
497
503
' 522
544
574
i 587
590
1927^January
February. _March
April
May
June
July
August
SeptemberOctober
NovemberDecember. .
156
153
151
151
152
155
150
149
151
153
153
119
119
118
119
119
122
122
120
119
120
119
207
210
201
200
196
201
205
202
206
210
2,586
2,569
2,533
2,478
2,630
2,699
2,653
2,625
2,615
2,626
914
914
915
923
930
949
962
914
910
907
167
164
162
155
154
154
159
156
157
161
163
163
131
132
129
130
130
131
134
130
122
123
: 592 151 2,002
; 585 152 1,995
! 581 151 1,997
150 2,021
2,063
151 :
153 i 2,063
156 i 2,059
150 i 2,044
i
151 I 2, 070
i
152 !i 2,071
152
624
628
599
141
142
142
143
145
146
145
145
148
150
1,805
1,821
', 817
,870
,849
,871
i; 973
147
146
146
146
146
146
145
146
147
146
205
198
195
194
198
196
193
191
186
184
234
241
250
243
236
234
231
230
234
235
625 | 147
642
146
635
146
617
145
565
145
541
145
524
144
518
143
509
143
509
146
148
180
177
173
169
169
172
175
175
174
173
171
171
208
205
203
201
199
199
199
198
198
199
200
654
645
664
657
654
660
652
654
630
631
i
i
i
I
i
161
161
159
159
159
157
158
160
159
159
154
159
153
163
152 i 163
149 ! 162
149 ! 159
150
157
147
155
153
147
155
148
158
151
158
157
156
156
156
157
157
157
158
158
161
153 i
151 !
149 !
146 |
145 :
146 !
147 !
147 i
147 I
148 |
149 ;
158
153
151
151
152
153
152
155
157
159
157
151
150
150
152
155
153
152
158
152
154
152
151
151
151
149
149
148
147
146
149
118
119
119
118
117
117
117
120
119
117
155
152
152
151
150
151
154
155
151
148
147
149;
148
146
146
145
145
144
144
143
143
143
118
117
118
119
121
120
119
118
117
119
119
COST OF LIVING
[Pre-war=100]
Other countries
European countries
Month
Massachu- Bel- Czecho- Engsetts gium 1 slovakia land'
Fin- France Ger- Greece Hun- Italy Neth- Nor- PoSweerland (Paris) many (Ath- gary (Mi- lands way land Spain den
lan)
ens)
1926
March
April
May
June
July
August
September.
October-..
November
December.
161
161
159
159
159
158
158
158
159
159
136
137
142
150
166
175
174
184
191
195
692
690
697
698
723
728
727
732
740
741
172
168
167
168
170
170
172
174
179
179
1,172
1,163
1,159
1,175
1,183
1,213
1,203
1,197
1,193
1,197
1927
January .FebruaryMarch
April
May
June.
July
.
August
September.
October
November.
December.
158
157
156
156
157
156
155
155
155
UR
157
198
200
195
195
193
196
199
198
202
747
746
744
749
756
761
753
739
736
734
175
172
171
165
164
163
166
164
165
167
169
169
1,187
1,189
1,183
1,173
1,166
1,184
1,203
1,237
1,230
1,237
207
1,251
451
485
539
545
524
525
507
138
140
140
141
142
143
142
142
144
144
1,706
1,731
1,741
1,791
1,808
1,818
1,833
1,862
1,895
1,889
119
119
118
116
117
116
114
114
116
116
647
642
652
650
649
652
647
672
657
657
145
145
145
146
147
148
150
147
147
150
151
1,900
1,896
1,898
1,911
1,938
1,951
1,960
1,951
1,955
1,956
119
120
119
119
119
121
119
119
119
655
667
663
651
612
586
548
543
537
536
i
174
171
164
225
218
217
168
213
166
203
167
201
167
197
195
169
177
185
184
178
182
189
193
197
199
185
187
183
183
186
178
187
190
191
193
202
201
200
203
205
205
199
201
202
205
210
196
190
194
196
179
179
189
221
226
227
225
"I73~
172
"I7l"
171
170
169"
~~172~
Swit- Can- Aus- India South
tra- (Bomzerland ada^ lia bay) Africa
163
162
160
160
160
159
159
160
159
159
160
160
159
158
159
160
160
160
161
161
162
154
153
152
150
150
150
149
149
150
151
152
151
150
148
148
149
149
149
149
150
150
157
161
"I68~
157
"I56~
155
155
153
153
155
157
155
155
155
154
156
131
131
132
131
130
130
130
131
131
129
156
155
155
153
152
154
156
157
154
151
1*0
151
130
130
131
131
132
132
132
131
131
132
132
11921 =-100. The cost of living index for Belgium has been changed from an average of seven provinces, on April, 1914, base, to a workingman's
budget in 59 cities, on a 1921 base.
» First of the month figures.
NOTE.—Information as to the number of foods and items included, the original base periods, and sources may be found on page 276 of the April,
1925, issu of the BULLETIN
56
FEDERAL RESERVE BULLETIN
JANUARY, 1928-
FOREIGN EXCHANGE RATES, 1919-1927
[NOTE.—For explanation see pages 9 and 52]
YEARLY AVERAGES
[In cents per unit of foreign currency]
Par
of exchange
Monetary unit
Europe:
Austria
Belgium
Belgium
Bulgaria
Czechoslovakia
Denmark
England.. _. .
Finland
France
Ger nany
Greece
Hungary
Italy
Netherlands
Norway .
Poland
Portugal
Rumania
Russia .
Spain
Sweden
Switzerland. _
Yugoslavia
North America:
Canada. . .
Cuba
Mexico.
South An:erica:
Argentina
Bolivia
Brazil .
Chile
Colombia
_
Ecuador
Peru
Uruguay
Venezuela
Asia:
China
China
China....
Hong Kong_
India
Japan
Java
Straits
ment.
Settle-
Turkey
Africa:
Egypt
1
Silver currency.
of silver for 1913.
Schilling
14 07
19.30
Franc
13.90
Belga
Lev
19 30
Crown
26.80
Krone __
486. 65
Pound
2 52
Markka
Franc
19.30
23. 82
Reichsmark
19 30
Drachma
17.49
Pengo
Lira
19.30
Florin
40 20
Krone
26.80
11 22
Zloty
108. 05
Escudo
Leu _. .
. . .-_
19.30
Chervonetz
514 60
Peseta
19.30
Krona
26 80
Franc
19.30
Dinar
.
19.30
1920
1922
1923
1924
7.4461
7. 6829
5. 2190
4. 6438
.6883
2.4151
20.9470
442.9165
2 1634
8. 2013
. 2323
3.3059
.8837
2. 9550
18. 3643
457.4825
2.6831
6.0811
.0020
1. 7141
.7281
2.9542
16. 7228
441. 7064
2. 5076
5. 2368
4. 7559
38 4975
17. 5016
4. 6016
39.1005
16. 6710
4. 3580
38. 2109
13. 9403
6. 6700
. 6<J69
12. 7670
1921
7. 3800
1919
4.2527
.4937
3. 3850
.4982
3. 9776
40.1601
17.8836
17. 7432
5.0397
.4832
1927
1925
1926
14.0612
4. 7580
14.0740
3.2649
. 7317
2.9656
21.1310
482.8944
2.5218
4. 7671
23. 8013
1. 5614
13. 9157
. 7235
2. 9622
26. 7251
486.1024
2. 5197
3. 9240
23. 7638
1.3173
17. 4741
5.1560
40.1065
26. 0477
11. 2881
5. 0290
.6042
514.9340
17.0592
26. 8148
19. 2618
1. 7598
19. 8230
25 5420
18. 9830
15. 9380
20 4940
16. 9030
13. 5314
22 5397
17. 3539
15. 4828
26.1661
19.0652
1. 3524
14. 4529
26.5548
18. 0600
1.0722
13. 3375
26 5223
18. 2228
1. 2818
14. 3443
26 8479
19. 3268
1. 7054
14.0764
.7210
2.9618
26.2257
485. 8235
2. 5209
3. 2427
23. 7996
1. 2579
17.5612
3. 8894
40. 0984
22. 3347
11.1796
5.1254
. 4620
515. 0000
14. 8959
26. 7646
19. 3130
1. 7647
23. 2850
442. 5800
15. 7750
366.4270
17. 7965
384. 9056
13. 6820
3. 0440
7. 0400
1. 7510
7. 4554
1. 2045
11. 3690
39.1470
24. 5760
4. 9700
34 4190
16. 5300
4. 2936
33 6470
14.9071
1. 7900
Dollar
Peso
Peso
100. 00
100. 00
49 85
95. 5970
89. 2760
89. 5549
98. 4783
99. 8516
48. 7150
98. 0352
99. 9508
48.5465
98. 7322
99. 9783
48. 5143
99. 9615
99. 9359
49.3926
99. 9889
99. 9310
48. 3087
99. 9720
99. 9675
47. 2049
Peso (gold)
Boliviano
M ilreis
Peso
Peso
.
Sucre
Libra
Peso
Bolivar
96.48
38 93
32.44
12 17
97 33
20 00
486. 65
103 42
19.30
99. 0180
90.7040
72 9999
81. 8166
78. 5727
78. 1308
91. 3822
26. 7350
22 5550
22. 5130
18 4540
13.1153
12 0574
12. 9486
12 2159
10. 2285
12 2423
10. 9403
10. 5448
12.1962
11 6031
79.3966
79. 0615
82. 2695
98.4009
92.1497
34.0941
14. 4357
12. 0766
98. 4547
20. 0571
374. 0<J65
101. 4740
19. 2565
96. 2950
34. 3913
11.8383
12.0652
97. 4899
18. 9724
373.7739
101.3361
18. 9835
Mexican dollar
Shanghai tael
Yuan dollar
Dollar
Rupee
Yen
Florin
Singapore dollar
M8 11
1
66. 85
1
47. 50
1
47. 77
36 50
49 85
40 20
56.78
54 6337
74. 9281
55 6073
55. 7126
28. 7409
47.8037
52. 0153
72. 0248
52 6223
52. 8985
31.1103
48. 5845
52. 3642
72. 6814
52 6973
52. 4691
31. 7835
41 1857
55. 5471
75. 7738
56 9066
56. 5199
36. 2642
41 0362
50. 7753
53.4984
51. 2523
56.1546
49. 9159
68. 4214
49. 9807
53. 3290
36. 3267
47.1163
40 2862
56. 2705
45.0315
62.0994
43. 9414
49. 2085
36.3117
47.4113
40. 2377
56.0476
Turkish pound
439.65
E g y p t i a n pound
494 31
i
j
129.8350
118. 5990
70. 7787
38 8790
50 3680
26 2198
48 2485
40. 2950
51 1840
52. 2549
j
i
498 0954
i
Parity represents gold value of unit in 1913 computed by multiplying silver content of unit by New York average price
MONTHLY AVERAGES
[In cents per unit of foreign currency]
Austria
Belgium
2
i
April-.
May
J
i
I
476. 5801
476. 5300
1
26. 7000
26.1340
25. 8940
25.1880
24 3200
23. 8900
22. 8300
21. 8600
22.0260
21. 6400
20. 8300
18. 7830
476. 5800
476. 4860
471.4700
466.1700
466 7600
462.1100
442. 8700
427. 2000
417. 9000
418.4000
409. 8200
381. 2300
'
i
15. 8700
15 4800
15.1700
13.9700 !
i
12.4688 i
11. 7500
11.1500
9. 6060
!
1
Quotations for Belgian franc from April, 1919, to October, 1926, inclusive.
Quotations for paper mark from September, 1919, to October, 1924, inclusive.
Finland
Germany 3
France
!
Greece
1
! Hungary
j
18.3800
18.3550
!
!
February
March
2
England
26.9000
27.0640
!
1919
January..
September . _ .
October
November
December
Denmark
I
1918
November.
December
June ._
July
August
Czechoslovakia
Bulgaria
:
•
1
;
18.3500
18. 3500
17. 7000
16. 6900
15 8000
15 6500
14. 3900
12 7600
11.7600
11 6200
10 6200
9.2420
4 2300 i
3. 7100
2 6400
2.1000
!
57
FEDERAL RESERVE BULLETIN
JANUARY, 1928
FOREIGN EXCHANGE RATES, 1919-1927: MONTHLY AVERAGES—Continued
[Tn cents per unit of foreign currency]
Czechoslovakia
1920
January
February
March
April
May
June
July
August
September
October
November
December
1921
January
February
March
April
May
June
July
August
September
October
N ovember
December
'
8.4750 -..
7.2310 I.
7.4630 '
6.6710
7.1820
8.2990
8.6400
7. 6700
7.1600
6.9040
6.3680
6.2490
'
:
Denmark j England
Finland ! France
Germany
Hungary s
Greece
17. 6000
14. 9000
17.2340
18.0120
16.8300
16.8700
16.4200
14.9600
14. 0100
13. 8700
13. 4060
14. 8500
367. 7930
338.1000
372. 5800
393.1000
384. 7700
394. 9750
386.4700
362.1900
351. 0250
347. 5100
343. 7239
349. 2350
8.4750
7.0370
7.1940
6. 2460
6. 8590
7. 9160
8.1300
7.1820
6. 7400
6. 5330
6.0100
5. 9200
1. 6900
1. 0500
1. 2600
1. 6660
2.1900
2. 5600
2. 5300
2.1000
1. 7220
1. 4780
1. 3210
1.3700
374.1970
387. 5800
391.1100
392. 9200
397. 5380
378.1500
363. 2130
365. 3632
372.4000
387. 2892
397. 0196
415. 6108
1. 6414
1. 5106
1.4059
1. 5278
1.8619
1. 9003
6. 4330
7. 1730
7. 0345
7. 2414
8. 3688
8. 0740
7. 8131
7. 7581
7. 2800
7. 2524
7.1991
7.8446
1. 6000
1. 6400
1. 5953
1. 5720
1. 6250
1.4440
1. 3025
1.1896
.9574
.6832
.3924
. 5258
5. 5516
5. 5460
5. 2400
4. 3792
4.1426
4.1400
0. 3323
.2629
.1944
.1432
.1078
.1512
!
6. 7700
7.5000
7.3500
7.4400
8.3653
8.0310
7.6370
7.5270
7.1700
7.1316
6. 9391
7.5354
0. 9548
.8801
. 7587
.6814
.6704
.7224
18. 0600
18. 5430
17. 3100
18. 0900
18.0700
17. 2100
15. 7790
1.3125
1.2247 j 16.1900
1.1601 1 17. 6700
1.0493 j 18. 9220
18. 4674
1. 0382
19.5165
1. 2494
.0325
.C281
.0150
. C134
.0112
. 00(57
. 0038
. 0017
. 0014
. 0014
. 0014
.C014
7. 8144
8. 3195
8.4311
8. 5192
8. 3580
8.2212
7. 8008
7. 5451
7. 2332
6. 8580
6. 3700
6. 6448
. 7104
.6930
. 6880
.6898
.6930
. 7358
. 7293
. 6518
. 6380
. 6481
. 6835
- .6997
1. 7319
1. 855C
1. 7333
1. 9f;C2
1. 9207
1. 9236
2.1845
2. 9023
3. 2206
3.2845
3.1758
3. 0969
19. 9744 422. 4780
20. 6414 436. 2000
21.1081
437. 5719
21. 2204 441.33C8
21.3969 i 444.6119
21.65(32 | 445.1862
21.5364 | 444. 6368
21.5348 i 446. 4678
21.0552 j 443. 0696
20.1908 I 443. 8484
20. 2C71 447. 9921
20. 6700 460. 9800
1. 8871
2.0029
2. 0600
1. 9268
2.0821
2.1616
2.1462
2.1329
2.1741
2. 3239
2. 5609
2. 5124
8.1636
8. 7305
9. 0033
9. 2288
9.1196
8.7646
8. 2372
7. 9567
7. 6592
7. 3704
6. 8583
7.2296
. 5204
.4811
.3585
.3459
.3440
. 3185
. 2041
. 0989
. 0684
. 0332
.0147
.0136
4.3644
4. 5082
4. 4407
4. 4668
4. 2685
3. 8346
2. 9596
3.0830
2.4724
2. 3896
1. 5925
1. 2337
. 1525
. 1497
.1256
.1258
. 1261
.1079
.0760
.0595
.0423
.0402
.0413
.0430
1923
January
February
March
April
May
June
July
August
September.October
November..
December __-
.0014
. 0014
. 0014
.0014
.0014
.0014
.0014
. 001.4
. 0014
. 0014
.0014
. C014
6.0765
5. 3955
5. 48C0
5. 7560
5. 7231
5. 3985
4. 8824
4. 5492
4.9017
5. 0877
4. 7354
4. 5816
.6947
. 6372
. 6543
. 7738
.7982
1.1749
1.1850
. 9583
. 9590
1. 0150
.9221
.8162
2. 8556
2. 9580
2. 9693
2. 9781
2. 9791
2. 9934
2. 9971
2. 9340
2.9945
2. 9705
2. 9057
2.9248
19. 7938
19. G905
19.1970
18. 9160
18. 6481
17.9573
17. 5416
18.4612
18.1633
17. 5262
17. 1992
17. 8208
465. 4611
469. 0809
469. 5693
465. 5468
462. 5677
461. 4681
458. 3385
456. 0338
454. 2217
452. 3745
438.2152
436. 0148
2. 4807
2. 6226
2. 7553
2. 7541
2. 7705
2. 7694
2. 7677
2. 7723
2. 6996
2. 6732
2. 6406
2. 4755
6. 6769
6.1459
6. 3237
6. 6668
6. 6365
6. 3012
5. 8905
5. 6500
5.8550
5. 9488
5. 5167
5. 2496
.0073
.0038
.0047
.0041
.0022
.0010
6.34C0
6.C339
7.1881
8.6750
.0431
• . 0227
1. 2206
1.1739
1.0962
1.1694
1. 6883
3. 0975
2. 5463
1. 7462
1. 7866
1. 5432
1. 5578
1.8952
.0392
.C381
.0289
.0217
.0191
.0140
. 0097
.C056
.0055
. GC54
.0054
.C052
1924
January
February
March
April
May
June
July
August
September...
October
November. .
December—_
.0014
.0014
.0014
.0014
.0014
.0C14
. 0014
.0014
.0014
.0014
.0014
.0014
4.1819
3. 837G
3. 8650
5. 2319
4. 8646
4.5648
4. 5558
5. C219
4. 9380
4. 8042
4. 8326
4.9650
.1743
.7315
.7375
.7278
. 7231
.7173
. 7239
.7328
.7310
. 7320
.7331
.7339
2. 8981
2. 9015
2. 9015
2. 9567
2. 9392
2. 9364
2. 9528
2. 9789
2. 9932
2. 9814
2. 9890
3. 0204
16. 9419
15. 9983
15. 6788
16.6446
16. 9242
16. 7776
16. 0473
16.2115
16. 9544
17. 3331
17. 5483
17. 6362
425. 9C92
430. 7709
429. 0631
435.1281
436. 08C8
431.9880
437. 0388
449. 9458
446. 0536
448. 7004
460.9687
469. 5838
2. 4828
2. 4987
2. 5074
2. 5080
2. 5067
2. 5068
2. 5068
2. 5129
2. 5109
2. 5125
2. 5184
2. 5202
4. 6650
4.4191
4.6812
6.1573
5. 7919
5. 2528
5.1185
5.4635
5. 3016
5. 2292
5. 2757
5. 3988
». 0226
.0218
9.0220
». 0220
9.0228
9.0234
9.0239
9.0238
9.0238
9.0238
23. 7983
23.8031
1. 9357
1. 6983
1. 6297
1. 8413
2.0091
1. 7343
1. 7140
1. 7947
1.7778
1.7356
1. 7808
1.8140
.0039
.0033
.0015
.0014
.0012
.0011
.0012
.0013
.0013
.0013
.0013
.0013
23. 8000
23.8000
23.8000
23.8000
23.8000
23.8000
23. 8000
23. 8000
23. 8000
23.8031
23.8061
23.8069
1.7553
1. 6134
1. 5484
1. 7774
1.7926
1. 6575
1.5956
1. 5406
1.4613
1. 3554
1. 3375
1.2887
.0014
.0014
.0014
.0014
.0014
.0014
.0014
.0014
.0014
.0014
.0014
.0014
1922
January
February
March
April
May
June
July
August
September
October
November
December
'
|
i
'
:
0.1417
.1193
.0936
.0561
. 0360
.0387
I
•
;
;
!
:
;
[
|
;
1925
.0014
17.8104 478.1673
5. 0573
2. 9987
January
.7335
2. 5198
5. 3923
.0014
17.8064 477.2418
5. 0750
February
2. 5203
5. 2796
.7319
2.9600
14.0583
18.0692 477, 6250
5, 0662
March
2. 5214
5.1807
.7335
2, 9665
14. 0593
18.4404 479.5308
5. 0546
April
2. 5221
5.1877
.7319
2. 9648
14. 0599
18. 8076 485. 4720
5. 0225
2. 5218
5.1632
May
.7318
2. 9632
14.0518
19.1138 486. 0415
4.7035
2.5218
4.7696
June
.7322
2. 9625
14. 0541
21. 3658 485. 9604
4.6223
2. 5222
4.6981
July
._..
.7341
2.9617
14.0624
23.3015 485. 6900
4.5265
2. 5227
4. 6912
August
.7333
2. 9618
14.0694
24. 5188 484. 6464
4. 4040
2.5235
4. 7124
September..
.7314
2.9616
14. 0728
24. 5769 484. 2800
4. 5258
2. 5226
4.4312
October
.7294
2. 9617
14. 0624
24.8561
4.5270
2. 5221
3. 9622
484. 5861
November..
.7279
2. 9615
14.0604
24.8642 484.9838
4,5296
2. 5217
3.7358
December...
.7292
2.9615
4
Quotations for Austrian krone from July, 1921, to February, 1925, inclusive.
* Quotations for Hungarian crown from July, 1921, to February, 1&25, inclusive.
» Per thousand.
* Per hundred thousand.
s Per ten million.
1
9
• Per billion.
58
FEDERAL RESERVE BULLETIN
JANUARY, 1928
FOREIGN EXCHANGE RATES, 1919-1927: MONTHLY AVERAGES—Continued
[In cents per unit of foreign currency]
Austria
Belgium
Bulgaria
Czechoslovakia
Denmark
England
Finland
France
Germany
Greece
Hungary
1926
January _
February
March _.
__ __
April
May - -June
July
August
_ _ __
September
October
November
December
14.0566
14 0556
14,0607
14. 0662
14.0735
14.0796
14. 0832
14.0787
14.0837
14.0842
14.0845
14. 0802
4.5360
4.5432
4.2341
3. 6742
3.1176
2.9558
2.4250
2.7538
2. 7228
2.7784
13.9088
13.9108
0.7007
.7046
.7204
.7232
.7238
.7219
.7266
.7262
.7246
.7260
.7271
.7244
2.9616
2.9618
2. 9618
2.9618
2. 9617
2.9618
2.9616
2. 9618
2.9618
2.9618
2.9620
2.9620
24.8044
25.3786
26.1130
26.1738
26.2020
26.4846
2 a 5015
26.5442
26.5540
26. 5744
26. 6159
26. 6369
485.7860
486. 3363
486.0825
486.2185
486.1544
486.6096
486.3450
485.8608
485.4168
485.0328
484.8758
485.1250
2.5211
2.5206
2.5216
2.5208
2.5209
2.5209
2.5209
2. 5206
2.5209
2. 5211
2. 5208
2.5210
3.7708
3.6782
3.5804
3.3885
3.1508
2.9415
2.4658
2.8327
2.8548
2.9404
3.4167
3.9492
23.8012
23.8068
23.8030
23. 8019
23.8028
23.8050
23.8035
23.8096
23.8120
23.8028
23. 7488
23.7958
1.3541
1.4349
1.3744
1.2762
1.2742
1.2413
1.1758
1.1160
1.1609
1.2087
1.2343
1.2643
17.5532
17.5618
17.5552
17.5631
17.5584
17.5585
17.5704
17.5604
17.5620
17.5616
17.5642
17. 5654
1927
January
February
March
April
May
June
July
August
September..
October
November _ « . . _ .
December
14.0794
14.0841
14.0738
14.0736
14. 0674
14 0625
14.0695
14, 0629
14.0816
14.0820
14.0874
14.0946
13.9072
13.9023
13.9000
13.9000
13.8968
13.8900
13.8980
13.9107
13.9220
13. 9260
13.9467
13.9885
.7230
.7242
.7246
.7249
.7238
.7218
.7232
.7230
.7246
.7229
.7230
.7235
2. 9618
2.9618
2.9616
2. 9616
2.9615
2. 9616
2. 9626
2. 9627
2. 9626
2. 9627
2. 9629
2.9630
26. 6488
26. 6495
26.6456
26. 6681
26. 6784
26. 7207
26. 7276
26. 7785
26.7680
26.7932
26. 7988
26.8192
485.2648
485.0282
485.4025
485. 6546
485. 7020
485. 6088
485. 5056
486. 0233
486. 3528
486. 9676
487.4012
488.2542
2. 5208
2.5208
2. 5205
2. 5206
2.5201
2.5194
2. 5196
2. 5189
2. 5189
2. 5187
2. 5191
2.5191
3.9584
3.9232
3.9126
3. 9188
3.9168
3. 9169
3.9112
3.9193
3.9200
3. 9236
3. 9288
3.9396
23. 7216
23. 6977
23.7137
23.7011
23. 6924
23. 6923
23.7428
23. 7859
23.8004
23. 8624
23.8629
23.8904
1.2895
1.2979
1.2898
1.3295
1.3211
1.3430
1.3232
1.3083
1.3243
1.3262
1.3242
1.3294
17. 5332
17.5314
17.5074
17.4773
17.4556
17.4438
17.4376
17.4363
17.4688
17.4624
17.4658
Netherlands
Norway
Poland *°
Portugal
Rumania
15.7600
15.7500
42.1530
42.6730
27.5000
28.0140
20.1000
20.0600
28.2000
29.1120
20.1200
20.6200
15. 7500
15. 7500
14 9700
13. 6600
12. 5800
12.5500
11.9000
10.8700
10. 2100
9.8430
8.4600
7. 6630
42.3070
41. 3520
40.8710
40. 4320
39.8300
39.1220
38.0000
37.2200
37. 5300
38. 0000
37.7640
37.8510
27. 9340
27.4000
26.7590
25. 8970
25.4520
25. 3220
24.1000
23.4200
23. 2400
23.0500
22.2600
20. 6000
20.1700
20.3940
20. 7090
20.3220
20.2400
20.0100
19.4000
19.2000
19. 0600
19.2100
19.7800
19.5100
28.8900
28. 2190
27. 7700
26. 8970
25. 9430
25.8800
25.0000
24. 6700
24.5600
24.3880
23. 0900
21.6000
20. 6600
20. 4900
20.4500
20.2800
19.9600
18.9000
18. 0800
17. 7300
17. 8900
17.8600
18.1500
18. 4200
7.1430
5. 5100
5. 3190
4.4600
5.1700
5.9130
5. 7800
4.8900
4.3400
3. 9400
3.6200
3. 4890
37. 8000
37.3000
36.7900
37.1160
36. 6000
36.1360
34.9720
32. 8970
31. 2690
30.8659
30.1860
30. 9520
19.1900
17.3000
18.1790
19.8340
18.6300
17. 5440
16. 5200
14.9900
13.9850
13.7900
13.3800
14.7400
18.9100
17.4500
17.6000
17.4770
16.8000
16.5600
15. 9600
15.1000
14.7550
14. 3300
13.0300
13.0700
20. 7000
18. 6000
20.3680
21. 8730
21.2200
21. 8270
21. 8500
20. 5900
20.2100
19. 7000
19.0990
19. 5900
17.8900
16. 4740
16.9500
17. 9300
17.7322
18.2110
17. 6200
16.6500
16.2600
15. 9000
15.5340
15. 3900
3.5520
3. 6544
3. 8500
4. 6010
5. 2960
4. 9770
4. 5264
4.3156
4. 2000
3.9708
4.1213
4.4365
32.8800
34.2010
34. 4000
34. 7500
35. 5600
33.2840
31. 7810
31.0000
31. 6600
33.4544
34.9722
36. 3104
17.6300
17. 7800
16.1900
15.9700
15. 7700
14. 6100
13.3800
13.0700
12. 8600
12. 6444
14.1209
15. 2327
13. 5100
14.0200
13.9700
13. 9500
13.5900
13.0800
12. 8200
12.8900
13.0200
13. 2520
13. 7165
14. 6496
21. 4000
22.2570
22.8300
23. 5700
23.4900
22. 5600
21.0400
21.1120
21. 7800
22. 9364
23.2335
24. 5281
15. 6800
16.3610
17.0800
17.3600
17.8600
17.0100
16. 5460
16. 8170
17.2000
18.2332
18.8035
19. 3919
Italy
1918
November
December
Russia
Spain
Sweden
Switzerland
17.4773
Yugoslavia
1919
January
February
March
April
May
June
July
August
September
October
November
December
1920
January
February
March
April
May
June
July
August
September
October
November
December
1921
January .
February
March
April
May
_ .
June
12.0880
July
0.0516
.0489
10.0700
August
September
9.4160
.0256
October
.0212
9. 6228
November
.0290
8.4152
.0313
December
..
8. 0196
Quotations for Polish mark from July, 1921, to May, 1924, inclusive.
!
1. 3995
1.2383
.9574
.7785
.6569
.8008
2. 5634
2.3300
1.9122
1. 5227
1.3058
1. 5366
59
FEDERAL RESERVE BULLETIN
JANUARY, 1928
FOREIGN EXCHANGE RATES, 1919-1927: MONTHLY AVERAGES—Continued
[In cents per unit of foreign currencyl
Italy
1922
January
February
March .
April
Netherlands
Norway
Poland
Portugal
Rumania
Kussiaii
(nominal)
Spain
Switzerland
Sweden
Yugoslavia
4.3744
4.9095
5.1115
5.3668
5.2558
4. 9619
4. 5748
4. 5078
4. 2676
4.1720
4. 5063
5. 0340
36.6772
37. 6082
37. 8452
37.9332
38. 6500
38. 7069
38. 7684
38. 8489
38. 7932
38. 9624
39.2729
39. 8368
15. 6636
16. 6641
17. 6156
18 6116
18.4738
17. 0654
16. 6832
17.1793
16. 8272
17. 8600
18. 3658
18. 9396
0. 0327
.0286
. 0236
0262
.0249
.0237
.0185
.0135
.0127
.0095
.0065
.0057
7.6644
7. 4895
8.4293
7.9800
7. 8285
7. 5096
7.1568
6. 5849
4. 8256
4. 8760
4.9921
4. 5212
0. 7783
.7953
.7485
.7332
.6967
.6584
.6045
.8110
.6559
.6261
.6417
.6111
14.9768
15. 6927
15. 6533
15.5128
15. 6819
15.6869
15. 5632
15. 5489
15. 2992
15.2496
15.2750
15. 6356
24.9488
26.1495
26.1563
26.0480
25. 7746
25. 8092
25. 9128
26. 3381
26.4568
26. 6488
26. 8442
26. 9484
19.4156
19. 5227
19.4548
19.4480
19.2062
19. 0388
19. 0952
19. 0396
18. 7908
18. 4208
18. 4358
18. 9100
1.3814
1 2975
1.2899
1 3302
1 4502
1. 3801
1.2218
1.1863
1.2926
1 6222
1. 5691
1. 2231
4.
4.
4.
4.
4.
4.
4.
4.
4.
4.
4.
4.
8792
8177
8550
9596
8392
5746
3260
3062
4375
5146
3575
3372
39. 5642
39. 5273
39. 4893
39.1788
39.1304
39. 2012
39. 2296
39. 3446
39. 3025
39.1338
38. 0150
38. 0392
18. 6665
18. 5518
18.1578
17. 8420
16. 5362
16. 6396
16. 2040
16. 2954
16. 0758
15. 5046
14. 6546
14. 9140
.0043
.0025
.0024
.0023
.0021
.0013
2
. 7240
2
. 4200
2
. 3546
2. 1113
2. 0502
2. 0234
4. 6050
4.3582
4. 3430
4.6032
4. 4731
4. 6604
4. 2140
4.2119
4.1663
4. 0035
3. 7858
3. 5636
.5194
.4769
.4842
.4789
.5097
.5168
.5177
.4677
.4642
.4688
.5029
.5153
15. 6600
15. 6577
15.4652
15. 3220
15.2327
14.9242
14. 2972
13. 6573
13. 5783
13.4704
13. 0800
13. 0368
26. 8610
26. 5959
26. 6000
26. 6444
26. 6462
26. 5596
26. 5316
26. 6281
26. 5496
26. 3996
26. 2867
26. 3332
18. 7831
18. 7977
18. 5896
18.2424
18 0277
17.9404
17 5536
18. 0538
17. 8621
17. 8735
17. 5458
17. 4524
.9560
.9681
1. 0417
1. 0173
1.0499
1.1484
1 0668
1. 0570
1. 0940
1.1748
1.1491
1.1358
4. 3400
4. 3452
4. 2769
4. 4408
4. 4396
4. 3328
4. 3035
4. 4446
4. 3820
4. 3504
4. 3335
4.3019
37. 3496
37. 4161
37. 0650
37.1931
37. 4058
37. 4352
37. 9419
38. 8035
38. 4508
39.1027
40. 0513
40.4162
14.0765
13. 3248
13. 5527
13. 7942
13. 8662
13. 5132
13. 4235
13. 8665
13. 8296
14. 2546
14. 7152
15.0635
1.0116
l
. 0109
1.0113
i. 0114
1 0113
19. 2928
19. 2465
19.2254
19.2188
19.2181
19. 2074
19. 2035
3.1831
3.1639
3.1262
3.1354
3. 0373
2. 8600
2. 7996
2. 9704
3.1808
3. 9315
4. 5104
4. 7977
.4993
.5182
.5225
.5188
.4902
.4311
.4322
.4605
.5178
• .5459
.5393
.5079
12.7462
12. 7357
12. 7327
13. 6435
13. 7962
13.4552
13. 2996
13.4088
13. 2396
13. 4015
13. 5961
13.9558
26.1831
26.1826
26. 2869
26. 3804
26. 5000
26. 5416
26. 5950
26. 6142
26. 6028
26. 6123
26. 8135
26.9531
17. 3212
17. 3683
17. 2900
17. 5996
17. 7246
17. 6604
18 1946
18. 8219
18. 8820
19.1827
19.2765
19.3781
1.1335
1 2232
1. 2372
1.2391
1. 2353
1.1850
1 1825
1.2363
1. 3515
1. 4245
1. 4490
1.4962
4.1669
4 1082
4.0719
4.1030
4.0672
3. 8273
3. G677
3. 6573
4 0640
3. 9915
4. 0048
4. 0312
40.4069
40 1700
39 9212
39. 9488
40.1848
40.1354
40.1023
40.2419
40 2084
40.2004
40. 2265
40.1809
15.2708
15 2541
15 4346
16.1338
16. 8196
17 0115
18.0673
18 8027
20 9320
20 2042
20 3126
20.3119
19.1788
19 1800
19 1831
19.1780
19.1872
19.1858
19. 0815
17 9527
17 5888
16 6558
15 7400
10. 8435
4. 8808
4. 9060
4. 9296
4. 9554
5.0024
5.0719
5.1362
5.1300
5 1356
5 0888
5.1130
5.1169
.5191
.5073
.4866
.4583
.4722
.4660
.4875
.5117
4890
.4774
.4632
.4609
14.1808
14. 2245
14.2219
14.2862
14. 5332
14. 5731
14. 5073
14. 4104
14.3860
14.3523
14.2526
14.1831
26.9458
26. 9441
26.9496
26.9381
26.7532
26.7635
26. 8558
26. 8715
26. 8244
26. 7900
26. 7517
26. 7858
19.3369
19 2550
19.2646
19.3323
19.3464
19.4019
19.4146
19.4019
19 3068
19 2742
19.2713
19.2977
1.6347
1 6216
1 6006
1. 6146
1.6268
1.7114
1.7608
1. 7946
1 7795
1 7733
1. 7704
1. 7705
November
December
4. 0376
4. 0264
4. 0156
4. 0200
3. 8728
3. 6646
3. 3504
3. 2950
3.6688
4.1196
4. 2142
4.4350
40.1812
40. 0795
40. 0689
40.1258
40.1980
40 1750
40.1773
40.1123
40. 0732
40.0036
39. 9850
39. 9927
20. 3488
20 8273
21.4670
21. 6181
21. 6568
22 1027
21. 9304
21. 9146
21. 9140
23. 6060
25.3046
25. 2858
12. 8664
13.1536
12.6888
11. 3292
9 5836
9 3015
10. 0654
10. 8573
10. 9676
11. 0892
11.2271
11. 2665
5.1168
5.1227
5.1330
5.1396
5.1256
5 1423
5.1296
5.1300
5.1256
5.1108
5:1063
5.1196
.4476
.4321
.4234
.4030
.3710
.4278
.4601
.4672
.5105
.5357
.5488
.5206
515.0000
515.0000
515.0000
515.0000
515.0000
515.0000
515.0000
515.0000
515. 0000
515.0000
515.0000
515.0000
14.1508
14.1014
14.0933
14.2881
14. 5348
15. 7619
15. 7169
15.2942
15. 2240
15.1016
15.1533
15.2365
26. 7776
26. 7782
26. 8125
26. 7904
26. 7612
26. 8004
26. 7954
26. 7654
26. 7476
26. 7288
26. 6904
26. 7196
19. 3112
19. 2623
19. 2518
19. 3004
19.3464
19.3604
19. 3604
19. 3235
19. 3216
19. 3084
19. 2846
19. 3192
1. 7695
1. 7610
1. 7611
1. 7609
1.7617
1. 7653
1. 7672
1. 7649
1. 7662
1. 7674
1. 7659
1. 7653
1927
January
February
March
April
May..
June
July
August
September
October
November
December
4.3448
4.3182
4. 5059
5. 0204
5.4016
5. 5819
5. 4488
5. 4396
5.4432
5. 4616
5. 4458
5.3800
39. 9868
40.0041
40. 0137
40. 0023
40.0196
40. 0515
40.0600
40. 0719
40. 0776
40.1920
40. 3612
40.4381
25. 5700
25. 7759
26.0474
25. 8592
25. 8360
25. 889625. 8352
25. 9374
26. 3620
26. 3404
26. 4871
26.6169
11. 3076
11.3391
11.3703
11.4226
11.3816
11.3065
11. 2500
11. 2240
11. 2168
11.2096
11. 2063
11.2204
5.1152
5.1155
5.1170
5.1138
5.1220
5. 0419
5.0008
4. 9574
4. 9288
4. 9456
4. 9396
4.9550
.5306
.5743
.6128
.6157
.6176
.5964
.6094
. 6163
.6181
.6193
.6155
.6188
515.0000
515.0000
515.0000
515.0000
515. 0000
515.0000
515. 0000
515. 0000
515. 0000
515.0000
514.1700
515.0000
16.0340
16. 7805
17.4088
17.6385
17. 5912
17.1988
17. 0856
16. 9000
17.1504
17. 2540
16.9400
16.6623
26. 7056
26. 6864
26. 7452
26.7788
26.7480
26. 7792
26. 7784
26. 8203
26. 8752
26. 9236
26. 9246
27.0015
19. 2740
19. 2318
19.2359
19. 2323
19. 2324
19. 2365
19.2528
19.2759
19. 2816
19.2868
19. 2850
19.3150
1. 7635
1. 7605
1. 7593
1. 7581
• 1.7579
1. 7577
1. 7585
1. 7598
1. 7604
1.7607
1. 7607
1.7615
May
June .
July
August
September
October
November
December
1923
January
February
March
April
May
June ._
July
August
September
October
November
December
1924
January
.
February
March
April
..
May
June
Julv
August
September
October
November
December
1925
January
February
March
April
May
June
July
August
SeDtember
October
November
December
1926
January
February
March
April
_.
_ _
May
June
July
August _
September
October
_
i Averages based on daily quotations of closing rates as publishedJby New York Journal of Commerce.
12 Per thousand.
60
FEDERAL RESERVE BULLETIN
JANUARY, 1928
FOREIGN EXCHANGE RATES, 1919-1927: MONTHLY AVERAGES—Continued
[In cents per unit of foreign currency]
Canada
1918
November
December
Cuba
Mexico
Argentina
Bolivia
Brazil
Chile
Colombia Ecuador
Peru
Uruguay
98.2284
98. 4450
102.1000
102. 5100
25. 8000
26. 7S20
22.8000
25.8170
August
September
October
November
December
97 9669
98.0507
97 9262
97 4622
97.1610
97 1250
96. 6082
95.8430
96. 3300
96. 3800
95 8600
92.8050
101. 9100
101. 9500
101. 5000
100. 3000
100. 8150
99.0400
97.1400
96. 2700
96. 5800
96.4800
97.6600
98. 3130
25. 8000
25. 9640
26.1000
26.2000
27. 6900
27. 8700
27. 3170
26. 0000
25. 3700
25. 7800
27. 5160
28. 7550
25. 8400
27. 7000
29. 6000
26.4000
24.7400
25. 8000
19. 3500
18.1800
18. 9400
20. 0700
19. 2000
18.7260
1920
January
February
IV'larch
April
May
June
July
August
September
October
November
December
91 5100
86. 5000
89 3800
91. 6100
90.0400
88 1930
88 0750
88 6400
90. 3700
90. 8500
89. 2670
86. 3150
98.2340
98. 5390
98. 7150
98. 3100
97.0550
96.1090
92 2660
87 1000
84. 5740
81. 3710
76. 8740
78. 7340
27.5340
26.1900
26. 5000
26. 8400
26. 3344
25.1000
22 8000
20. 7210
18. 2900
17.5100
16.6000
15. 2500
20. 7400
21. 3300
21.4000
21. 2650
19. 7000
18. 9850
19 1080
18 1000
16. 7900
15 5900
14.0000
14. 2150
87. 6370
88.0700
87.8053
89. 0589
89. 6473
88 7600
88.1973
89. 7819
89.8519
91.3906
91. 5082
92. 7744
15.1390
15. 5970
15.1300
14.0160
13.7000
11 6470
10. 4490
11.7600
12.3700
12. 7080
12. 5996
12. 6692
14 3200
14.4030
14. 7600
12. 9840
11. 8690
10 8570
10.4430
10. 2400
10. 7080
11. 7300
11. 0380
10. 7837
60. 6890
63.9050
64. 8900
66. 4388
66. 4126
68. 9077
12. 5752
13. 2459
13. 6678
13. 5696
13. 7365
13. 7215
13. 5520
13. 3752
12. 5392
11.3476
11. 9488
11. 9452
10.1302
10 3958
11. 4050
11.2775
11. 8667
12. 6394
12.9701
13. 7496
13. 7276
13.6068
12. 3825
12. 4064
72. 6472
79. 2391
80. 7326
78.1116
79. 7627
80. 9450
81. 3956
80.8474
78. 0132
77. 0756
79. 4613
84. 2120
1919
January
February
March
April
May
June
July
1921
January
February
March
April
May
June
July
August
September
October
November
December
1922
January
February
March
April
May
June
July
August
September
October
November
December
1923
January
February
March
April
May
June _
_
July
August
September
October
November . _ _.
December
1924
January
_ . _.
February
March
April
May _
__ _
June
July
August
September October
November
December
94
96.
96.
97.
98.
98.
98.
99,
99.
100.
100.
99.
8222
3114
8604
7580
7880
8401
9231
7481
9332
0807
0290
4484
99.0232
99. 3225
99.3233
99. 5258
99.5892
99. 6402
48.9113
48. 4954
48.5990
48.4113
48.2895
48. 4180
79.3820
80. 3900
78.2020
73.9580
71 8480
69 8570
65. 7990
66. 5550
69. 6300
73. 0780
73. 4739
74. 8042
99.
99
99.
99.
99.
99.
99.
99.
99.
99.
99.
99.
48. 6898
48 8076
49. 2888
49. 3574
49.0768
48.4812
48. 5229
48. 5314
48. 3006
48. 2917
48. 7620
48. 4468
77.1892
82. 5764
82. 7785
80. 7480
82. 4088
81. 8554
81. 8468
82. 0852
81. 0832
81. 4140
82.2283
85. 5688
48.
49.
48.
48.
48.
48.
48.
48.
48.
48.
48.
48.
84. 7354
84.2164
84.1452
83.1484
81. 6785
80.4669 !
77. 7376
74. 4581
74. 8533
73. 6581
71. 1450
72. 3308
11. 3796
11.4282
11. 0874
10. 6364
10. 3477
10. 4254
10. 3685
9. 7481
9. 7317
9. 4758
8. 7563
9. 3436
12. 8177
11. 9941
12. 6725
12. 3104
12. 8250
13. 4012
12. 6340
12.2115
12. 3754
11. 7512
11. 0775
10.6592
84. 6050
83.1582
84. 5496
83. 7348
80. 8638
80. 8492
79.1884
73. 9662
74 4592
73. 6381
72.1304
77. 2416
73. 6542
76.4517
76. 5527
74. 8019
74. 6308
73. 8912
74.1188
76. 6558
80. 0272
83. 5458
85.4865
88. 3177
10. 8523
11. 9757
11.4462
11.2288
11. 0458
10. 7488
9.9219
9. 9162
10. 0904
11.2215
11.4709
11. 5058
10. 3631
10.1335
9. 7712
10. 5354
10. 97J9
10.5956
10.1100
10. 0004
10.4368
11. 0485
11.2730
11.3327
79. 6808
78 2648
76. 6927
77. 5073
78. 0273
77. 5880
76. 6392
78. 5162
83. 4448
88 5946
95.4626
97.7408
7256
8542
8878
8145
8517
8357
7981
8729
8700
8826
8779
9450
99. 0943
98. 6724
98. 0570
98. 0201
97. 9403
97. 6578
97. 4204
97. 6666
97. 6506
98. 5518
98.1334
97. 5920
99. 9508
99.9554
99.9858
99. 9998
99. 9977
99.9753
99.9303
99. 8818
99. 8818
99. 9086
99.9886
99.9530
97. 3645
96. 9380
96.9569
98. 0871
98.3048
98.4401
99.2555
99. 8537
99. 9431
99 9743
99.9866
99.6543
99. 9736
99. 9713
100. 0505
100. 0396
100. 0375
100 0143
99.9436
99. 9194
99. 9281
99 9459
99.9530
99.9586
9082
0234
8605
4463
4267
3721
3692
3432
5692
4303
3449
4994
48. 0737
48. 2222
48.2309
48.2652
48. 2265
48.2199
48. 6047
48. 9031
48. 9818
48. 8575
48. 7777
48.8114
_ _
61
FEDERAL RESERVE BULLETIN
JANUARY, 1928
FOREIGN EXCHANGE RATES, 1919-1927: MONTHLY AVERAGES—Continued
[In cents per unit of foreign currency]
Canada
Cuba
Mexico
Argentina
Bolivia"
1925
January
February
March
April
May
June
July
August
September
October
November
December
99.9561
99.6895
100.0114
99.8620
99 9504
99 8714
99.9439
99- 0273
99.9974
99.9975
99.9695
99. 9982
99.9148
100,0293
99.8907
100. 0334
99. 9860
99.8500
100.0914 ! 99.9209
99.9385
100.0788
99. 9569
99. 9145
48.8800
49.2673
49.7439
49.8718
49.8962
49. 6641
49.6777
49.5826
49. 3519
49.1664
48.7879
48 7507 i
91 0754
90.3314 !
89 7115 '
86.8835
90 2444
91. 3304
91.7477 191.7042 !
91 7096 !
93.3565
94.4391
94 2131
1926
January
February
March
April
May
June
. - July
August
September
October
November
December
99. 8001
99.6539
99. 6301
100.0385
100.0744
100.1027
100.1265
100.1448
100.1382
100.0685
100.1331
99.9342
99.8976
99. 9612
99 9542
99. 9213
99. 9446
99.9317
99.9187
99.9206
99.9362
99.9252
99.9496
99.9150
48.5050
48.4993
48 5585
48. 6571
48. 2787
48 8495
48.8692
48 7823
48.7301
48.0545
47.1958
46. 6718
94.1328
93.2718
90. 3333
90. 7873
91.3100
flifffi
92.0504
91. 9573
92.2012
92. 7536
92.3854
93.2792
1927
January
February
March
April
May
June
July
August
September
October
November
December.
99.8393
99. 8382
99. 9019
100.0942
100.0658
99. 9360
99. 8520
99.9404
100.0497
100.1099
100.1369
99.8974
99.9466
100.0679
100.0265
100.0260
99.9606
99.9150
99.9288
100.0073
99. 9524
99. 9387
99.9289
99.9154
46.8267
47.0737
47.0084
46.8681
46. 5867
46.4197
46. 5383
47.3931
47.7219
47.6667
47.9125
48. 4506
93.8488
94. 7186
95.9811
96.1738
96.2008
96.4373
96.5540
96.8448
97.1248
97.1572
97.0521
97.2304
China
(Mexican
dollar)
China
(Shanghai
tael)
Venezuela
1918
November
December
1919
January
February
March
April
May
June
July_._
August
September
October
November
December
i
123. 5000
124 3200
124 3000
118 7000
112 1600
113 4500
123.1100
124 8800
123.5000
130 0000
132.1900
138. 6000
153 9000
161.8800
!
!
|
__
1920
January
February
March-.
April
May
_June
July
August
September
October
November
December
Chile
Colombia" Ecuador H
99.0319
95.4572
95.3146
94.3773
96.0228
96.9738
98. 5281
99.8935
99. 9492
101.1273
102.4778
101. 6423
34.5000
34.5000
34". 5000
34.5000
34.5000
34.0962
33.8077
33. 7500
33.7500
33.7500
33. 7500
33.7500
12.0404
12.1214
12.0815
12.1165
12.0372
12.0438
12.0500
12.1162
12.1292
12.1000
12.0517
12.0362
98.6250
98.6250
98.6250
98. 6250
98.6250
98.9279
99. 2885
99.3750
98.2650
97.6656
97.3200
97.3969
22. 5000
22. 5000
22.5000
22. 5000
22. 5000
20. 9856
17.6827
16 8000
18.1875
18.1875
18.2135
18.3125
389.1200
384. 5909
385.4722
378. 2019
368. 9000
368.4230
376. 5865
383 ifinO
389.1200
364.2200
359. 3958
357. 3269
102.8820
103.1050
102.1818
102. 7138
103.0012
101. 7108
100.2504
100.1900
100.4096
100. 2104
99.9004
101. 2588
33.7500
33.9432
34.0000
34.0000
34.0000
34.4231
34. 5950
34.7546
34.8000
34.8000
34.8000
34.8000
11. 6752
11.8382
11.8452
11. 7965
11.8084
11.8050
11. 7916
11.8237
11.8596
11.9172
11.9333
11.9677
12. 0236
12. 0005
12.0041
12.0327
12.0204
12.0235
12.0224
12.0292
12.0736
12.1712
12.1763
12. 2062
98.0280
97.9468
97.5663
95.0181
97.4688
97.4196
97.5345
98.2798
97.9872
97.4736
97.4950
97.7381
18.3125
18.3096
18.3125
18.3125
18.3125
19.6019
19. 5750
19.3750
19.3750
19.3750
19.3750
19.3750
361.1200
366.3636
366. 5926
363.3077
364. 6400
374.4231
374.6000
374.9626
388. 5600
384.1600
376.1458
389.8500
101. 5220
101.4623
101. 2763
101.9750
100.7088
100.3708
99.1684
100.1381
100.4052
101.8796
103.3658
103.8692
Hong
Kong
China
(Yuan
dollar)
14.8368
14. 7818
14.4893
14.0085
14. 6784
15.5196
15.5631
15.3715
15.1908
13. 9768
12. 9696
11.8542
India
Japan
Java
35.7500
35.8800
54.2190
52.8700
35.7500
35. 7500
35.8300
35. 5240
38. 3300
42.1000
41. 6000
41. 7000
43. 9400
43. 6800
43.3000
45.5300
51.9900
51. 5400
51.0590
51.3800
51.7450
51.4560
51.1000
51.0000
50.8700
50.9100
50.9400
50.4180
44.0050
47. 6000
47.8000
46. 8200
43 3100
41 0000
38.3800
36.4000
33.6100
30. 5900
29.7000
26.9000
49. 9700
48. 5450
47. 5100
48. 6250
51.4500
51 4100
51. 6200
51. 5750
51.4100
51 3000
50.7500
50.3450
I
i
i
1
!
j
Straits
Settlements
i
5
Uruguay
11.3469
10. 8432
11. 0985
11.1692
11. 3972
11.3173
11.6912
11.9138
12.0156
12.0565
12.1913
12.1558
161 3000
161.0000
148.7000
138.4000
119 8380
106. 0500
103. 5500
112.1000
106.9000
98. 7400
91 3000
78.8300
79290—28
Peruia
11. 7150
11. 2673
11.0381
10. 6342
10. 3080
10.8919
11. 3619
12.1335
13. 5188
14.8131
14.6126
14.1738
1921
January
76.9000
February
68.4000
1
March
64. 2250
(
April
67.2970
1
68. 2700
May
66. 3500
June
- 48. 6684
66.9250
July
49. 3200
49.4291
67.8580
August
50.0700
52. 5764
September
73.0000
52. 4400
56.8638
78. 4016
October
56.4892
54. 5870
75.9043
November
54.1404
54. 6027
75.3162
54.2569
December
1 Averages based on daily quotations of closing rates as published by New
3
Brazil
28. 6100
48.7000
27.7000
48. 6900
25.9500
48.5900
26.3000
48. 5000
48.5480
26. 4700
47.9740
24. 5490
48.0114
23. 0588
48.3690
24. 2240
48.2000
26. 3900
47. 6552
27.4188
47. 8961
26. 8739
47. 9219
27. 4488
York Journal of Commerce.
i
!
i
j
i
1
i
41.9840
41 8090
4 2 4finn
43.9204
45.4739
46. 8612
Turkey
Egypt
62
FEDERAL RESERVE BULLETIN
JANUARY, 1928
FOREIGN EXCHANGE RATES, 1919-1927 MONTHLY AVERAGES—Continued
[In cents per unit of foreign currency]
I
Venezuela"
1922
January
February
March
April
May
June.
July___
August
September __
October
November..
December.._
China
(Mexican
dollar)
China
(Shanghai
tael)
Hong
Kong
India
Japan
54.1040
52. 7445
51. 6278
53.9196
57. 3781
57.1938
56. 7528
56.2559
56.1500
54. 5508
52. 4842
52. 0288
74.1456
72.1532
70. 7541
73.9396
78.9400
79.0342
77. 8176
76.9637
77. 0140
74. 8500
71. 8725
71. 0444
54. 7536
54.3632
53.3489
55.0540
57.9819
57. 6223
57. 3824
57. 0533
56. 9696
55. 6424
53. 4783 i
52.8144 |
54.9864
53.9795
53.1767
54.7284
57. 7796
57. 7208
57. 9404
57. 5422
57. 3080 I
55.9552 I
53.8150 I
53.2288
27.8104
28.1427
27. 8215
27. 8096
28. 7508
28.9112
28. 8908
29. 0144
28. 7412
28. 8424
29. 5108
30. 6488
1923
January
February—
March.
April
May
June
July...
August
September. _
October
November. _
December—
52. 2985
52.0505
54. 5333
53. 8192
53. 8415
52.1315
50. 8260
50. 5015
51.1579
50.6923
50. 7375
51. 3356
71.9331
71. 8191
75. 5300
74. 4964
74. 5342
72.1746
70.0292
69. 7096
70. 7850
69.9465
70. 7600
72.2480
52.8262
52. 8741
55. 3144
54. 6136
54. 5512
53.2738
52.1568
51.0748
51. 3058
51.1050
50.9250
51.2148
53. 4246
52. 9691
55. 3804
54. 8180
54. 7958
53.2085
52. 0356
51. 8746
52. 3821
51. 8512
50. 8592
50.8648
31. 7262 | 48. 7454
31.8495 | 48. 4359
31. 5659 i 48.4559
31.3460 !
31.0812 i
49.0785
30.9919 j
49.0450
48. 7892
30.8036 I
30. 4608 I 48. 8765
30. 6017 ! 48. 6200
31.0627 i 48.8092
30.8600 j 48.3742
47.0104
31.0052 ;
1924
January
February
March
April
May
June.
July...
August
September __
October
November. December...
50. 3727
51. 0109
50. 3858
50.5235
51. 3058
51. 2844
51. 4646
52. 7200 i
53.9044 I
55.0792 i
55. 3100 !
55.2112 !
70.2704
71.2026
J69.9965
69.7423
70. 8777
71. 3724
71. 6708
73.3254
75.2680
76.9792
76. 3009
75.4669
50.4138
50. 8748
50. 4650
50. 9015
51. 7958
51. 9372
52.3115
53.0692
53. 7176
55.1500
55. 6743
56.2000
50.2081
50. 6070
50. 4927
51.1292
51. 7965
51.9368
52.2962
63. 3154
53. 4596
54. 3600
54.8587
55.2481
30. 4473
30.3235 ,
29.8623 I
30. 4035
30. 5796
30.4876
31.2531
32.2642
32. 5188
33. 6922
34. 3922
35.2888
44. 8965
45.4265
42.9015
40.9300
40.1865
41.0824
41.3492
41.2608
40. 5972
38. 7942
38. 5183
38.4400
1925
January
February
March
April.
May
June
._July
August
September. _
October
November __
December.._
55.4962
55. 0854
53. 6488
53,5550
54.2324
55. 8931
56.1400
56. 5546
57.5656
57.4269
55. 7704
55.1781
56.7150
56.4695
54. 8958
54. 8050
55.6656
56.9085
57.4646
57. 6658
59. 2848
59.1508
57.2074
56.6581
55. 5458
55. 3495
54.2692
54. 0973
54. 6240
56.0223
56.8469
57. 3088
59. 3152
59. 3369
57. 8143
57.7119
35.7065
35.7309
35. 6662
35. 6023
36.2324
36.4815
36. 6104
36.6227
36.6332
36. 5973
36.6187
36. 6412
Straits
Settlements
Java"
38. 4546
39. 0791
40.9009
41. 7596
41.9130
40. 8258
41.0781
|Q77
40.9877
75.3423
75.2614
73. 3612
73.2320
74. 2588
76. 0881
76.5569
77.2938
78.4664
77.9004
75. 8161
75.6788
1926
January
February
March
April
_
May
June
July
August
September..
October
November. _
December...
19.3500
19.3886
19.4000
19.4000
19,4000
19.4000
19. 3231
19.3500
19.0000
19.0000
19.0000
19. 0508
54.2888 ' 74.7528
.
73. 7351
53. 7464
72. 7118
52.8466 i
70. 8746
51.4431 !
71.7764
52.0716 ;
72.1704
52.2712
71. 3031
51.7104
68.6931
50.1402
66.6028
48.2468
44.6668 • 59.9760
59.4254
43.7688 !
58. 9704
43.7735 i
1927
January
February
March
April..
May
June
July
August
September..
October
November..
December...
19. 0600
18. 7641
18. 7500
18.7500
18. 7500
18. 7620
19.1280
19.1552
19.1700
19.1700
19.1700
19.1700
45. 2068
46.5273
44.1341
45. 5388
45. 6136
45. 5077
44. 6004
43. 3807
43. 9572
44.7376
45. 5958
45.9092
14
61.6688
63. 7764
60. 5048
62.0138
62.1680
62. 7362
62. 2760
60. 3781
61.2068
61. 8328
63. 2663
47.6244
47.3727
47. 3485
47. 3628
47. 3554
47. 7504
47. 7688
47. 7019
48. 0996
48.0732
48. 3729
48. 8500
;
. ..
Egypt
47.9296
49.2959
49.5307
49.9928
50. 7592
51.1435
50. 7184
51. 3974
51. 6440
51. 7840
52. 0058
53 n m n
54.1412 ! _
54. 8532
54. 8133
54.7328
54.2635
53. 8458
53.2684
53.2485
53 1896
52.9831
51. 7292
50. 8476
50. 3481
50 5587
50. 2777
50. 5012
50. 5312
50.1892
50. 5196
51. 7623
51. 5144
51.8312
53.1065
53.9905
!
l" "
55. 3104
55. 3423
55.1008
55.4204
56.3080
56. 5823
56.6300
56, 035 L
56. 5876
50. 5127
50.0205
50.0254
40. 7488
40.9723
42. 3252
43.1931 I
.
55.7232
55.5132 I
54.6885 |
52.5431 i
52.8508 i
52.9396 I
50.8196 !
49.8431 \
47.3080 i
42.5356 I
42.5542
42.4900 I
58.0748
57. 8636
56. 3130
54.6377
55.0800
55.2185
54.5919
53.1954
52.2816
47. 7684
47.4567
47. 5938
36.6852]
36.7600 i
36.5756 !
36.1823 i
36. 2592
36.2946
36.2862 j
36.3642 i
30. 3288 i
30.1490 :
36.0207
36.04G5
44.1696
45.4045 !
45.3915 !
46.6442 i
46.9472 :
:
40.8454 !
47.0085 !
47.8031 j
48.4000 !
48.6612 I
49.0650 !
48.G373 i
l
40.7526 I
40.5347
40.3856
40.3630
40.4838
40.4315 ,
40.4736 !
40.4700 i
40.3103 !
40.3125 i
40.2813 :
40.2470 i
56.6150 I
56.0327 j
56.6256 |
56.5535 i
50.2004 I
56.2009 I
50.2092 :
50.1512 |
50.0730 i
56,0728 i
55.9790 i
55.9400 i
52.65C0 i
52.2905
51.5152 ;
50.3331 :
5 2 . 8 1 % '•
53.1850
55.1773
55.0EG0 !
52.4312 |
51.0884 !
50.2033 i
50.19C0 ;
498.0496
498.6159
498.4222
498.6135
498.4404
498.8758
498. 5858
498.0808
497.6740
497. 2896
497.1150
497. 3392
:
49.0632
50. 3605
48. 6855
49.6865
49. 2716
49. 0742
48. 9772
48.1600
48.4980
48. 8552
49. 7917
50.3085
36.4104
36.2968
30. 3004
30.1423
30.2332
30.1973
30.1108
36.1252
36. 3350
36. 4092
30. 4504
36.7369
48. 8108
48. 8350
49.1411
48.3738
47.0832
46.0896
47.1312
47. 3322
46.8248
46. £664
45.9796
46.1881
40. 2375
40.1756
40.1702
40.1503
40.1038
40. 2079
40.1903
40.1740
40.1675
40.2618
40.4090
40.5319
55.9616 j
55.9023
55.9556 !
55.9535 i
55.9896 |
55.1)807 i
55.9000 i
55.9711 I
55.0908 !
50.0332 i
50.0087 J
56.7269 ;
_
50.4452 •.
50.8891 i
50.3122 i
50.9035 i
52. 2232
51.£992
51.0544
49.9774
50. (JC40
52. 8024
52.4871
497.4868
497.2877
497. 6670
497. 8981
497. 9792
497. 8950
497. 7768
498.2844
43.9196
45.1186
42.8956
43.9062
43.6964
44.5215
43.5804
42.6259
43.2164
44.0600
44.8638
45.1877
:
:
'
i
:
!
'
:
;
Averages based on daily quotations of closing rates as published by New York Journal of Commerce.
Turkey
499. 2S00
499. 6888
JAJXTJAHY, 1928
63
FEDERAL RESERVE BULLETIN
LAW DEPARTMENT
REGULATIONS OF THE FEDERAL RESERVE BOARD
WASHINGTON, Dece?nber 22} 1927.
To All Member Banks:
The Federal Reserve Board transmits herewith a
new issue of all of its regulations applicable to member
banks. Since the issuance of the last edition of the
board's regulations under date of August 15, 1924, the
Federal reserve act has been amended by the act of
February 25, 1927, and it has become necessary to
amend certain of the board's regulations to conform to
the amendments contained in that act. The board has
also taken this occasion to make a number of other
amendments to its regulations which experience has
proven to be necessary or desirable.
Regulation A has been amended in a number of
minor details, and there has been inserted in the regulation the substance of the board \s rulings with regard
to the rediscount by Federal reserve banks of paper
acquired from nonmember banks.
Regulation D has been amended in several particulars, the most important of which is Section IV dealing
with penalties for deficiencies in reserves, which has
been changed in such a way as to require member
banks in cities where Federal reserve banks or branches
thereof are located and member banks in such other
cities as the Federal Reserve Board may designate
from time to time to compute their reserves on the
basis of average daily net deposit balances covering
semiweekly periods instead of weekly periods as
heretofore. Provision has also been made for the
better enforcement of the provisions regarding the
maintenance of reserves.
Regulation F has been changed so as to regulate
more completely the exercise of trust powers by
national banks, and a provision has been inserted to
cover the situation where a State bank, trust company, or sayings bank having trust business consolidates
with a national bank under the provisions of the act
of November 7, 1918, as amended by the act of February 25, 1927.
Regulation G, which formerly regulated the making
of loans by national banks on farm land and other real
estate, has been eliminated altogether in view of the
provisions of the act of February 25, 1927, conferring
regulatory powers upon the Comptroller of the Currency; and there has been inserted, in lieu of the previous Regulation G, the regulation promulgated by the
board under date of December 9, 1926, governing the
rediscount of notes secured by adjusted service certificates, which wTas formerly designated as Regulation M,
Series of 1926.
Regulation H has been amended so as to conform to
the amendments made to section 9 of the Federal
reserve act by the act of February 25, 1927.
Regulation I has been amended in a few minor particulars and the provision regarding the surrender of
Federal reserve bank stock by a member bank which
goes into voluntary liquidation has been simplified.
Regulation K was not amended except by the incorporation therein of amendments adopted from time to
time during the year 1927, which have previously been
announced.
No material changes have been made in Regulations
B, C, J, and L.
This issue of the board's regulations becomes effective on January 3, 1928. The Federal reserve banks
are requested to see that each member bank in their
respective districts receives at least one copy of this
official edition of the board's regulations.
Instructions which govern only Federal reserve
agents or Federal reserve banks will be covered in
separate letters or regulations, as in the past.
By order of the Federal Reserve Board.
WALTER L. EDDY, Secretary.
REGULATION A, SERIES OF, 1928
(Superseding Regulation A of 1924)
DISCOUNTS UNDER SECTIONS 13 AND 13a
ARTICLE A. NOTES, DRAFTS, AND BILLS OF EXCHANGE
SECTION I.—General statutory provisions
Any Federal reserve bank may discount for any of
its member banks any note, draft, or bill of exchange:
Provided—
(a) It has a definite maturity at the time of discount of not more than 90 days, exclusive of days of
grace; except that (1) if drawn or issued for an
agricultural purpose or based on livestock, it may
have a maturity at the time of discount of not more
than nine months, exclusive of days of grace, and (2)
certain bills of exchange payable at sight or on demand
are eligible even though they have no definite maturity (see Section VII, below);
(b) It has been issued or drawn for an agricultural,
industrial, or commercial purpose, or the proceeds
have been used' or are to be used for such a purpose,
or it is a note, draft, or bill of exchange of a factor
issued as such making advances exclusively to producers of staple agricultural products in their raw
state;
(c) It was not issued or drawn for the purpose of
carrying or trading in stocks, bonds, or other investment securities, except bonds and notes of the Government of the United States;
id) The aggregate of notes, drafts, and bills bearing the signature or indorsement of any one borrower,
whether a person, company, firm, or corporation, discounted for any one member bank, whether State or
National, shall at no time exceed 10 per cent of the
unimpaired capital and surplus of such bank; but this
restriction shall not apply to the discount of bills of
exchange drawn in good faith against actually existing values;
(e) It is indorsed by a member bank; and
(/) It conforms to all applicable provisions of this
regulation.
No Federal reserve bank may discount for any
member State bank or trust company any of the
notes, drafts, or bills of exchange of any one borrower
who is liable for borrowed money to such State bank
or trust company in an amount greater than that
which could be borrowed lawfully from such State
bank or trust company were it a national banking
association.
Any Federal reserve bank may make advances to
its member banks on their promissory notes for a
period not exceeding 15 days, provided that they are
64
FEDERAL RESERVE BULLETIN
secured by notes, drafts, bills of exchange, or bankers*
acceptances which are eligible for discount or for purchase by Federal reserve banks, or by the deposit or
pledge of bonds or notes of the United States.
SECTION II.—General character of notes, drafts, and bills
of exchange eligible
The Federal Reserve Board, exercising its statutory
right to define the character of a note, draft, or bill
of exchange eligible for discount at a Federal reserve
bank, has determined that—
(a) It must be a negotiable note, draft, or bill of
exchange which has been issued or drawn, or the proceeds of which have been used or are to be used in
the first instance, in producing, purchasing, carrying,
or marketing goods 1 in one or more of the steps of the
process of production, manufacture, or distribution,
or for the purpose of carrying or trading in bonds or
notes of the United States, and the name of a party
to such transaction must appear upon it as maker,
drawer, acceptor, or indorser.
(6) It must not be a note, draft, or bill of exchange
the proceeds of which have been or are to be advanced
or loaned to some other borrower, except as to paper
described below under Sections VI (6) and VIII.
(c) It must not be a note, draft, or bill of exchange
the proceeds of which have been used or are to be
used for permanent or fixed investments of any kind,
such as land, buildings, or machinery, or for any
other capital purpose.
(d) It must not be a note, draft, or bill of exchange
the proceeds of which have been used or are to be
used for investments of a purely speculative character.
(e) It may be secured bv the pledge of goods or
collateral of any nature, including paper which is
ineligible for discount, provided it (the note, draft, or
bill of exchange) is otherwise eligible.
SECTION III.—Applications for discount
Every application for the discount of notes, drafts,
or bills of exchange must contain a certificate of the
member bank, in form to be prescribed by the Federal
reserve bank, that—
(1) To the best of its knowledge and belief, such
notes, drafts, or bills of exchange have been issued or
drawn, or the proceeds thereof have been or are to be
used, for such a purpose as to render them eligible for
discount under the terms of this regulation; and
(2) That such notes, drafts, or bills of exchange have
not been acquired from a nonmember bank, or, if so
acquired, that the applying member bank has received
permission from the Federal Reserve Board to discount
with the Federal reserve bank paper acquired from nonmember banks.
In the case of a member State bank or trust company, every such application must contain a certificate
or guaranty to the effect that the borrower is not liable,
and will not be permitted to become liable during the
time his paper is held by the Federal reserve bank, to
such bank or trust company for borrowed money in an
amount greater than that which could be borrowed
lawfully from such State bank or trust company were
it a national banking association.
JANUARY,
1928
ditional promise, in writing, signed by the maker, to
pay, in the United States, at a fixed or determinable
future time, a sum certain in dollars to order or to
bearer.
(b) Evidence of eligibility and requirement of statements.—A Federal reserve bank must be satisfied by
reference to the note or otherwise that it is eligible for
discount, and the member bank shall certify in its
application whether a financial statement of the
borrower is on file with it.
A recent financial statement of the borrower must
be on file with the member bank if it has discounted
the note for a nondepositor or a nonmember bank, and
in all other cases unless—
(1) It is secured by a warehouse, terminal, or other
similar receipt covering goods in storage, by a valid
prior lien on livestock which is being marketed or
fattened for market, or by bonds or notes of the United
States; or
(2) The aggregate of obligations of the borrower
discounted and offered for discount at the Federal
reserve bank by the member bank is less than a sum
equal to 10 per cent of the paid-in capital of the member
bank and is less than $5,000.
Whenever the borrower has closely affiliated or
subsidiary corporations or firms, the borrower's
financial statement shall be accompanied by separate
financial statements of such affiliated or subsidiary
corporations or firms, unless the statement of the
borrower clearly indicates that such note is both
eligible from a legal standpoint and acceptable from a
credit standpoint or unless financial statements of such
affiliated or subsidiary corporations or firms are on
file with the Federal reserve bank.
A Federal reserve bank shall use its discretion in
taking the steps necessary to satisfy itself as to eligibility. Compliance of a note with Section II (c) may
be evidenced by a statement of the borrower showing a
reasonable excess of quick assets over current liabilities.
A Federal reserve bank may, in any case, require the
financial statement of the borrower to be filed with it.
SECTION
V.—Drafts,
bills of exchange, and trade
acceptances
(a) Definition.—A draft or bill of exchange, within
the meaning of this regulation, is defined as an unconditional order in writing, addressed by one person to
another, signed by the person giving it, requiring the
person to whom it is addressed to pay in the United
States, at a fixed or determinable future time, a sum
certain in dollars to the order of a specified person;
and a trade acceptance is defined as a draft or bill of
exchange, 2drawn by the seller on the purchaser of
goods sold, and accepted by such purchaser.
(6) Evidence of eligibility and requirement of statements.—A Federal reserve bank shall take such steps
as it deems necessary to satisfy itself as to the eligibility
of the draft, bill, or trade acceptance offered for discount and may require a recent financial statement of
one or more parties to the instrument. The draft,
bill, or trade acceptance should be drawn so as to
evidence the character of the underlying transaction,
but if it is not so drawn evidence of eligibility may consist of a stamp or certificate affixed by the acceptor or
SECTION IV.—Promissory notes
drawer in a form satisfactory to the Federal reserve
(a) Definition.—A promissory note, within the bank.
meaning of this regulation, is defined as an uncon-
* When used in this regulation the word "goods" shall be construed
to include goods, wares, merchandise, or agricultural products, including livestock j
* A consignment of goods or a conditional sale of goods can not be considered "goods sold" within the meaning of this clause. The purchase
price of goods plus the cost of labor in effecting their installation may be
included in the amount for which the trade acceptance is drawn.
JANUARY,
1923
FEDERAL RESERVE BULLETIN
SECTION VI.—Agricultural payer
(a) Definition.—Agricultural paper, within the meaning of this regulation, is defined as a negotiable note,
draft, or bill of exchange issued or drawn, or the
proceeds of which have been or are to be used, for
agricultural purposes, including the production of
agricultural products, the marketing of agricultural
products by the growers thereof, or the carrying of
agricultural products by the growers thereof pending
orderly marketing, and the breeding, raising, fattening, or marketing of livestock, and which has a maturity at the time of discount of not more than nine
months, exclusive of days of grace.
(b) Paper of cooperative marketing associations.—
Under the express terms of section 13a, notes, drafts,
bills of exchange, or acceptances issued or drawn by
cooperative marketing associations composed of producers of agricultural products are deemed to have
been issued or drawn for an agricultural purpose, if the
proceeds thereof have been or are to be—
(1) Advanced by such association to any members
thereof for an agricultural purpose; or
(2) Used by such association in making payments
to any members thereof on account of agricultural
products delivered by such members to the association;
or
(3) Used by such association to meet expenditures
incurred or to be incurred by the association in connection with the grading, processing, packing, preparation for market, or marketing of any agricultural product handled by such association for any of its members.
These are not the only classes of paper of such associations which are eligible for discount, however, and
any other paper of such associations which complies
with the applicable requirements of this regulation
may be discounted on the same terms and conditions
as the paper of any other person or corporation.
Paper of cooperative marketing associations the
proceeds of which have been or are to be used (1) to
defray the expenses of organizing such associations, or
(2) for the acquisition of warehouses, for the purchase
or improvement of real estate, or for any other permanent or fixed investment of any kind, are not eligible
for discount, even though such warehouses or other
property are to be used exclusively in connection with
the ordinary operations of the association.
(c) Eligibility.—To be eligible for discount, agricultural paper, whether a note, draft, bill of exchange, or
trade acceptance, must comply with the respective
sections of this regulation which would apply to it if
its maturity were 90 days or less.
(d) Discounts for Federal intermediate credit banks.—
Any Federal reserve bank may discount agricultural paper for any Federal intermediate credit bank;
but no Federal reserve bank shall discount for any
Federal intermediate credit bank any such paper
which bears the indorsement of any nonmember State
bank or trust company which is eligible for membership in the Federal reserve system under the terms of
section 9 of the Federal reserve act as amended. In
discounting such paper each Federal reserve bank
shall give preference to the demands of its own member
banks and shall have due regard to the probable
future needs of its own member banks; and no Federal
reserve bank shall discount paper for any Federal intermediate credit bank when its own reserves amount
to less than 50 per cent of its own aggregate liabilities
for deposits and Federal reserve notes in actual circulation. The aggregate amount of paper discounted
bv all Federal reserve banks»;for anv one Federal in-
65
termediate credit bank shall at no time exceed an
amount equal to the paid-up and unimpaired capital
and surplus of such Federal intermediate credit bank,
(e) Limitations.—The Federal Reserve Board prescribes no limitation on the aggregate amount of notes,
drafts, bills of exchange, and acceptances with maturities in excess of three months, but not exceeding six
months, exclusive of days of grace, which may be discounted by any Federal reserve bank; but the aggregate amount of notes, drafts, bills of exchange, and
acceptances with maturities in excess of six months,
but not exceeding nine months, which may be discounted by any Federal reserve bank shall not exceed
10 per cent of its total assets.
SECTION VII.—Sight drafts secured by bills of lading
A Federal reserve bank may discount for any of its
member banks bills of exchange payable at sight or
on demand which—
(a) Are drawn to finance the domestic shipment of
nonperishable, readily marketable, staple agricultural
products; and
(b) Are secured by bills of lading or other shipping
documents conveying or securing title to such staples.
All such bills of exchange shall be forwarded promptly
for collection, and demand for payment shall be made
promptly, unless the drawer instructs that they be
held until arrival of car, in which event they must be
presented for payment within a reasonable time after
notice of arrival of such staples at their destination
has been received. In no event shall any such bill be
held by or fpr the account of a Federal reserve bank
for a period in excess of 90 days.
In discounting such bills Federal reserve banks may
compute the interest to be deducted on the basis of the
estimated life of each bill and adjust the amount thus
deducted after payment of such bills to conform to
the actual life thereof.
SECTION VIII.—Factors1 paper
Notes, drafts, and bills of exchange of factors issued
as such for the purpose of making advances exclusively
to producers of staple agricultural products in their
raw state are eligible for discount with maturities not
in excess of 90 days, exclusive of days of grace, irrespective of the requirements of Sections II (a) and
i i (&).
SECTION IX.—Paper acquired from nonmember banks
(a) Except with the permission of the Federal Reserve Board, no Federal reserve bank shall discount
any paper acquired by a member bank from a nonmember bank or bearing the signature or indorsement
of a nonmember bank; except that Federal reserve
banks may discount bankers' acceptances and other
eligible paper bearing the signature or indorsement of a
nonmember bank, if such paper was bought by the
offering bank in good faith on the open market from
some party other than the nonmernber bank.
(b) Applications for permission to rediscount paper
acquired from nonmember banks shall be made in
writing by the member banks which desire to offer
such paper for rediscount and shall state fully the facts
which gave rise to each application and the reasons
why the applying member banks feel justified in seeking such permission. Such applications shall be addressed to the Federal Reserve Board, but shall be
filed with the Federal reserve agent, who shall forward
them promptly to the Federal Reserve Board with his
recommendations.
66
FEDERAL RESERVE BULLETIN
(c) The Federal Reserve Board hereby grants its
permission for Federal reserve banks to discount for
member banks paper bearing the signature or indorsement of Federal intermediate credit banks, if such
paper is otherwise eligible under the law and this regulation.
ARTICLE B.—BANKERS'
SECTION
ACCEPTANCES 3
X.—Definition
A banker's acceptance within the meaning of this
regulation is defined as a draft or bill of exchange,
whether payable in the United States or abroad and
whether payable in dollars or some other money, of
which the acceptor is a bank or trust company, or a
firm, person, company, or corporation engaged generally in the business of granting bankers' acceptance
credits.
SECTION XI.—Eligibility
A Federal reserve bank may discount any such bill
bearing the indorsement of a member bank and having
a maturity at the time of discount not greater than that
prescribed by Section X I I (a), which has been drawn
under a credit opened for the purpose of conducting or
settling accounts resulting from a transaction or transactions involving any one of the following:
(1) The shipment of goods between the United
States and any foreign country, or between the United
States and any of its dependencies or insular possessions, or between foreign countries, or between dependencies or insular possessions arid foreign countries;
(2) The shipment of goods within the United States,
provided shipping documents conveying security title
are attached at the time of acceptance; or
(3) The storage in the United States or in any foreign country of readily marketable staples,4 proVided
that the bill is secured at the time of acceptance by a
warehouse, terminal, or other similar receipt, conveying security title to such staples, issued by a party
independent of the customer, and provided further that
the acceptor remains secured throughout the life of the
acceptance. In the event that the goods must be withdrawn from storage prior to the maturity of the acceptance or the retirement of the credit, a trust receipt
or other similar document covering the goods may be
substituted in lieu of the original document, provided
that such substitution is conditioned upon a reasonably prompt liquidation of the credit. In order to
insure compliance with this condition it should be required, when the original document is released, either
(a) that the proceeds of the goods will be applied
within a specified time toward a liquidation of the
acceptance credit or (6) that a new document, similar
to the original one, will be resubstituted within a
specified time.
Provided, That acceptances for any one customer in
excess of 10 per cent of the capital and surplus of the
3 For regulations governing the acceptance by member banks of drafts
and bills of exchange drawn on them, see Regulation C, p. 67.
*rfA readily marketable staple within the meaning of these regulations
may be defined as an article of commerce, agriculture, or industry of
such uses as to make it the subject of constant dealings in ready markets
with such frequent quotations of price as to make (a) the price easily
and definitely ascertainable and (5) the staple itself easy to realize upon
by sale at any time.
JANUARY, 1928
accepting bank must remain actually^ secured throughout the life of the acceptance, and in the case of the
acceptances of member banks this security must consist of shipping documents, warehouse receipts, or other
such documents, or some other actual security growing
out of the same transaction as the acceptance, such as
documentary drafts, trade acceptances, terminal receipts, or trust receipts which have been issued under
such circumstances, and which cover goods of such a
character, as to insure at all times a continuance of an
effective and lawful lien in favor of the accepting bank,
other trust receipts not being considered such actual
security if they permit the customer to have access to
or control over the goods.
A Federal reserve bank may also discount any bill
drawn by a bank or banker in a foreign country or
dependency or insular possession of the United States
for the purpose of furnishing dollar exchange as provided in Regulation C, provided that it has a maturity
at the time of discount of not more than three months,
exclusive of days of grace.
SECTION XII.—Maturities
(a) legal requirements.—No such acceptance is eligible for discount which has a maturity at the time of
discount in excess of 90 days' sight, exclusive of days
of grace, except that acceptances drawn for agricultural
purposes and secured at the time of acceptance by
warehouse receipts or other such documents conveying
or securing title covering readily marketable staples
may be discounted with maturities at the time of discount of not more than six months' sight, exclusive of
days of grace.
(b) General conditions as to maturity of domestic
acceptances.—Although a Federal reserve bank may
legally discount an acceptance having a maturity at the
time of discount not greater than that prescribed under
(a), it may decline to discount any acceptance the
maturity of which is in excess of the usual or customary
period of credit required to finance the underlying
transaction or which is in excess of that period reasonably necessary to finance such transaction. Since the
purpose of permitting the acceptance of drafts secured
by warehouse receipts or other such documents is to
permit of the temporary holding of readily marketable staples in storage pending a reasonably prompt
sale, shipment, or distribution, no such acceptance
should have a maturity in excess of the time ordinarily
necessary to effect a reasonably prompt sale, shipment, or distribution into the process of manufacture
or consumption.
SECTION XIII.—Evidence of eligibility
A Federal reserve bank must be satisfied, either
by reference to the acceptance itself or otherwise,
that the acceptance is eligible for discount under the
terms of the law and the provisions of this regulation.
The bill itself should be drawn so as to evidence the
character of the underlying transaction, but if it is
not so drawn evidence of eligibility may consist of a
stamp or certificate affixed by the acceptor in form
satisfactory to the Federal reserve bank.
JANUARY, 1928
67
FEDERAL RESERVE BULLETIN
REGULATION B, SERIES OF 1928
REGULATION C, SERIES OF 1928
(Superseding Regulation B of 1924)
OPEN MARKET PURCHASES OF BILLS OF EXCHANGE,
TRADE ACCEPTANCES, AND BANKERS' ACCEPTANCES
UNDER SECTION 14
SECTION I.—General statutory provisions
(Superseding Regulation^ of.1924)
ACCEPTANCE BY MEMBER BANES OF DRAFTS AND BILLS
OF EXCHANGE*
ARTICLE
A. ACCEPTANCE
OF DRAFTS OR BILLS OF
EXCHANGE DRAWN AGAINST DOMESTIC OR FOREIGN
Section 14 of the Federal reserve act provides that,
SHIPMENTS OF GOODS OR SECURED BY WAREHOUSE
under rules and regulations to be prescribed by
RECEIPTS COVERING READILY MARKETABLE STAPLES
the Federal Reserve Board, Federal reserve banks
may purchase and sell in the open market, at home or
abroad, from or to domestic or foreign banks, firms,
SECTION I.—Statutory provisions
corporations, or individuals, bills of exchange of the
kinds and maturities made eligible by the act for ^ Under the provisions of the sixth paragraph of secdiscount and bankers' acceptances, with or without tion 13 of the Federal reserve act, as amended, any
the indorsement of a member bank.
member bank may accept drafts or bills of exchange
drawn upon it, having not more than six months'
SECTION II.—General character of bills and acceptances sight to run, exclusive of days of grace, which grow out
of transactions involving the importation or exporta^ The Federal Reserve Board, exercising its statutory tion of goods; or which grow out of transactions inright to regulate the purchase of bills of exchange volving the domestic shipment of goods, provided
shipping documents conveying or securing title are atand acceptances, prescribes that—
(a) Any banker's acceptance or bill of exchange tached at the time of acceptance; or which are secured at
which is eligible for discount under the terms of the time of acceptance by a warehouse receipt or other
Regulation A is eligible for purchase by Federal such document conveying or securing title covering
6
reserve banks in the open market, with or without readily marketable staples. This paragraph limits
the amount which any bank shall accept for any one
the indorsement of a member bank, if—
company,
a
(1) It has been accepted by the drawee prior to person, or domesticfirm, or corporation, whether inexforeign
transaction, to an amount not
purchase; or
time, in the aggregate,
(2) It is accompanied or secured by shipping docu- ceeding at any paid-up and unimpaired more than 10
ments or by warehouse, terminal, or other similar per cent of itsThis limit, however, does capital stock
and surplus.
not apply in
receipts conveying security title; or
any case where the accepting bank remains secured
(3) It bears a satisfactory bank indorsement;
either by attached documents or by some other actual
(6) A banker's acceptance growing out of a trans- security growing out of the same transaction as the acaction involving the importation or exportation of ceptance. A trust receipt which permits the customer
goods may be purchased if it has a maturity not in to have access to or control over the goods will not be
excess of six months, exclusive of days of grace, pro- considered by Federal reserve banks to be "actual
vided that it conforms in other respects to the appli- security" within the meaning of section 13. A bill of
cable requirements of Regulation A; and
lading draft, however, is "actual security" even after
(c) A banker's acceptance growing out of a transac- the documents have been released, provided that the
tion involving the storage within the United States of draft is accepted by the drawee upon or before the surgoods actually under contract for sale and not yet de- render of the documents. The law also provides that
livered or paid for may be purchased, provided that any bank may accept such bills up to an amount not
the acceptor is secured by the pledge of such goods, and exceeding at any time, in the aggregate, more than oneprovided further, that the acceptance conforms in half of its paid-up and unimpaired capital stock and
other respects to the applicable requirements of Regu- surplus; or, with the approval of the Federal Reserve
lation A.
Board, up to an amount not exceeding at any time, in
SECTION III.—Statements
the aggregate, more than 100 per cent of its paid-up
capital stock and surplus. In no
A bill of exchange, unless indorsed by a member bank, and unimpaired shall
however,
is not eligible for purchase until a satisfactory state- event, growing out of the aggregate amount of acceptdomestic transactions exceed 50
ment has been furnished of the financial condition of ances
per cent of such capital stock and surplus.
one or more of the parties thereto.
A banker's acceptance, unless accepted or indorsed
* For regulations governing the rediscount of bankers' acceptances by
by a member bank, is not eligible for purchase until the
66.
acceptor has furnished a satisfactory statement of its Federal reserve banks, see Regulation A, p.meaning of these regulations
• A readily marketable staple
financial condition in form to be approved by the Fed- may be denned as an article ofwithin the agriculture, or industry of
commerce,
eral reserve bank and has agreed in writing with a such uses as to make it the subject of constant dealings in ready markets
frequent quotations of price as to make (a)
price
Federal reserve bank to inform it upon request con- with such ascertainable, and (6) the staple itself easy therealizeeasily and
definitely
to
upon by
cerning the transaction underlying the acceptance.
sale at any time.
68
FEDERAL RESERVE BULLETIN
SECTION II.—Regulations
JANUARY, 1928
are authorized to draw on member banks whose applications have been approved for the purpose of furnishing dollar exchange.
The Federal Reserve Board reserves the right to
modify or on 90 days' notice to revoke its approval
either as to any particular member bank or as to any
foreign country or dependency or insular possession of
the United States in which it has authorized banks or
bankers to draw on member banks for the purpose of
furnishing dollar exchange.
(1) Under the provisions of the law referred to
above the Federal Reserve Board has determined that
any member bank, having an unimpaired surplus
equal to at least 20 per cent of its paid-up capital,
which desires to accept drafts or bills of exchange
drawn for the purposes described above, up to an
amount not exceeding at any time, in the aggregate,
100 per cent of its paid-up and unimpaired capital
stock and surplus, may file an application for that
purpose with the Federal Reserve Board. Such application must be forwarded through the Federal reserve
bank of the district in which the applying bank is
REGULATION D, SERIES OF 1928
located.
(Superseding Regulation D of 1924)
(2) The Federal reserve bank shall report to the
Federal Reserve Board upon the standing of the applyRESERVES OF MEMBER BANKS
ing bank, stating whether the business and banking
conditions prevailing in its district warrant the grantSECTION I.—Statutory provisions
ing of such application.
(3) The approval of any such application may be Section 19 of the Federal reserve act provides, in
rescinded upon 90 days' notice to the bank affected.
part, as follows:
ARTICLE B. ACCEPTANCE OF DRAFTS OR BILLS OF
EXCHANGE DRAWN FOR THE PURPOSE OF CREATING DOLLAR EXCHANGE
SECTION III.—Statutory provisions
Section 13 of the Federal reserve act also provides
that any member bank may accept drafts or bills of
exchange drawn upon it having not more than three
months' sight to run, exclusive of days of grace,
drawn, under regulations to be prescribed by the
Federal Reserve Board, by banks or bankers in foreign
countries or dependencies or insular possessions of the
United States for the purpose of furnishing dollar
exchange as required by the usages of trade in the
respective countries, dependencies, or insular possessions.
No member bank shall accept such drafts or bills of
exchange for any one bank to an amount exceeding in
the aggregate 10 per cent of the paid-up and unimpaired capital and surplus of the accepting bank unless
the draft or bill of exchange is accompanied by documents conveying or securing title or by some other
adequate security. No member bank shall accept
such drafts or bills in an amount exceeding at any
time in the aggregate one-half of its paid-up and unimpaired capital and surplus. This 50 per cent limit
is separate and distinct from and not included in the
limits placed upon the acceptance of drafts and bills
of exchange as described under Article A of this
regulation.
SECTION IV.—Regulations
Any member bank desiring to accept drafts drawn
by banks or bankers in foreign countries or dependencies or insular possessions of the United States for
the purpose of furnishing dollar exchange shall first
make an application to the Federal Reserve Board
setting forth the usages of trade in the respective
countries, dependencies, or insular possessions in
which such banks or bankers are located.
If the Federal Reserve Board should determine that
the usages of trade in such countries, dependencies, or
possessions require the granting of the acceptance
facilities applied for, it will notify the applying bank
of its approval and will also publish in the Federal
Reserve Bulletin the name or names of those countries,
dependencies, or possessions in which banks or bankers
BANK RESERVES
SEC. 19. Demand deposits within the meaning of this act shall comprise
all deposits payable within thirty days, and time deposits shall comprise
all deposits payable after thirty days, all savings accounts and certificates
of deposit which are subject to not less than thirty days' notice before
payment, and all postal savings deposits.
Every bank, banking association, or trust company which is or which
becomes a member of any Federal reserve bank shall establish and
maintain reserve balances with its Federal reserve bank as follows:
(a) If not in a reserve or central reserve city, as now or hereafter defined, it shall hold and maintain with the Federal reserve bank of its
district an actual net balance equal to not less than seven per centum'of
the aggregate amount of its demand deposits and three per centum of
its time deposits.
(6) If in a reserve city, as now or hereafter defined, it shall hold and
maintain with the Federal reserve bank of its district an actual net
balance equal to not less than ten per centum of the aggregate amount
of its demand deposits and three per centum of its time deposits: Provided, however, That if located in the outlying districts of a reserve city
or in territory added to such a city by the extension of its corporate
charter, it may, upon the affirmative vote offivemembers of the Federal Reserve Board, hold and maintain the reserve balances specified
in paragraph (a) hereof.
(c) If in a central reserve city, as now or hereafter defined, it shall hold
and maintain with the Federal reserve bank of its district an actual net
balance equal to not less than thirteen per centum of the aggregate
amount of its demand deposits and three per centum of its time deposits:
Provided, however, That if located in the outlying districts of a central
reserve city or in territory added to such city by the extension of its
corpoerate charter, it may, upon the affirmative vote offivemembers of
the Federal Reserve Board, hold and maintain the reserve balances
specifid in paragraphs (a) or (&) thereof.
*
*
*
*
*
The required balance carried by a member bank with a Federal reserve
bank may, under the regulations and subject to such penalties as may
be prescribed by the Federal Reserve Board, be checked against and
withdrawn by such member bank for the purpose of meeting existing
liabilities: Provided, however, That no bank shall at any time make new
loans or shall pay any dividends unless and until the total balance
required by law is fully restored.
In estimating the balances required by this act, the net difference of
amounts due to and from other banks shall be taken as the basis for
ascertaining the deposits against which required balances with Federal
reserve banks shall be determined.
The various Liberty bond acts (act of April 24, 1917,
sec. 7; act of September 24, 1917, sec. 8; act of April 4,
1918, sec. 8) provide, in part, as follows:
That the provisions * * * with reference to the reserves required
to be kept by national banking associations and other member banks
of the Federal reserve system, shall not apply to deposits of public
moneys by the United States in designated depositaries.
SECTION
II.—Definitions
(a) Demand deposits.—The term "demand deposits" shall include all deposits which are payable
within 30 days except "savings accounts," "time certificates of deposit," and "postal savings deposits," as
defined below.
JANUARY,
FEDERAL RESERVE BULLETIN
1928
69
(6) Time deposits.—The term "time deposits"
shall include all "time deposits, open accounts," all
"savings accounts," all "time certificates of deposit,"
and all "postal savings deposits," as defined below.
(c) Time deposits, open accounts.—The term "time
deposits, open accounts" shall mean deposits not
evidenced by certificates of deposit or savings pass
books, in respect to which a written contract is entered into with the depositor at the time the deposit
is made that neither the whole nor any part of such
deposit may be withdrawn, by check" or otherwise,
except on a given date, not less than 30 days after
the date of deposit, or on written notice which must be
given by the depositor a certain specified number of
days in advance, in no case less than 30 days.
(d) Savings accounts.—The term "savings accounts" shall mean those deposits in respect to which—
(1) The pass book, certificate, or other similar form
of receipt must be presented to the bank whenever a
withdrawal is made,
(2) The depositor may at any time be required by
the bank to give notice of an intended withdrawal not
less than 30 days before a withdrawal is made, and
(3) The bank's printed regulations, accepted by the
depositor at the time the account is opened, include
the above requirements.
(e) Time certificates of deposit.—A "time certificate of deposit" is defined as an instrument evidencing the deposit with a bank, either with or without
interest, of a certain sum specified on the face of the
certificate payable in whole or in part to the depositor
or on his order—
|- (1) On a certain date, specified on the certificate,
not less than 30 days after the date of the deposit, or
(2) After the lapse of a certain specified time subsequent to the date of the certificate, in no case less
than 30 days, or
(3) Upon written notice, which the bank may at its
option require to be given a certain specified number of
days, not less than 30 days, before the date of repayment, and
(4) In all cases only upon presentation of the certificate at each withdrawal for proper indorsement or
surrender.
(/) Postal savings deposits.—The term "postal
savings deposits" shall mean deposits of postal savings
funds in banks under the terms of the postal savings
act, approved June 25, 1910, as amended.
(g) Government deposits.—The term "Government
deposits" shall mean deposits of public moneys by the
United States in designated depositaries.7
serve bank of its district an actual net balance equal to
3 per cent of its time deposits plus—
Seven per cent of its demand deposits if not in a
reserve or central reserve city.
Ten per cent of its demand deposits if in a reserve
city, except that if located in an outlying district 8 of
a reserve city or in territory added to such city by the
extension of the city's corporate limits such bank may,
upon the affirmative vote of five members of the Federal Reserve Board, be permitted to maintain 7 per
cent reserves against its demand deposits.
Thirteen per cent of its demand deposits if located
in a central reserve city, except that if located in an
outlying district 8 of a central reserve city or in territory added to such city by the extension of the city's
corporate limits, such bank may, upon the affirmative
vote of five members of the Federal Reserve Board,
be permitted to maintain 7 per cent or 10 per cent
reserves against its demand deposits.
No reserves are required to be maintained against
Government deposits as defined above.
A member bank exercising trust powers need not
maintain reserves against trust funds which it keeps
segregated and apart from its general assets or which
it deposits in another institution to the credit of itself
as trustee or other fiduciary. If, however, such funds
are mingled with the general assets of the bank, as
permitted to national banks under authority of section 11 (ft) of the Federal reserve act, a deposit liability
thereby arises against which reserves must be maintained. In computing reserve requirements, trust
funds deposited in a member bank by another bank to
the credit of such other bank as trustee or other
fiduciary must be classified by the member bank as
individual deposits rather than bank deposits.
(6) Deductions allowed in computing reserves.—
Member banks in determining the amount against
which reserves must be carried may deduct:
(1) From gross demand deposits, all Government deposits as defined above.
(2) From the amount of balances due to other banks,
the amount of balances due from other banks (except
Federal reserve banks and foreign banks), including in
the amount due to other banks certified, cashiers', and
treasurers' checks outstanding, and including in the
amount due from other banks out of town items placed
in the mail and charged to the account of correspondent
banks, items with a Federal reserve bank in process of
collection, checks drawn on banks located in the same
city, and exchanges for clearing houses.
(c) Availability of checks as reserve.—Checks forwarded to a Federal reserve bank for collection or
credit can not be counted as part of the minimum reSECTION III.—Computation of reserves
serve balance to be carried by a member bank with its
(a) Amounts of reserves to be maintained.—Every Federal reserve bank until such time as may be specimember bank of the Federal reserve system is required fied in the appropriate time schedule referred to in
by law to maintain on deposit with the Federal re- Section IV of Regulation J. If a member bank draw
against cheeks before such time, the draft will be
7
Deposits made by United States postmasters of Government funds, charged against its reserve balance if such balance be
other than postal savings deposits, received by them in their official sufficient in amount to pay it; but any resulting imcapacity, constitute "Government deposits" within the meaning of this pairment of reserve balances will be subject to all the
regulation and, when made in designated depositaries, are exempt from
the reserve requirements of section 19. The following classes of deposits, penalties provided by the act and by this regulation.
however, are not "Government deposits" within such meaning and are
not exempt from reserve requirements:
(1) Deposits of Philippine funds made by the Philippine Government
and carried under the title, "Treasurer of the Philippine Islands currency reserve fund account."
(2) Deposits of Porto Rican funds made by the Porto Eican Government.
(3) Deposits of Indian funds under the control of the Department of
the Interior.
(4) Deposits of States, counties, or municipalities.
(5) Deposits of the United States Shipping Board and the'Emergency
Fleet Corporation.
79290—28
6
SECTION IV.—Penalties for deficiencies in reserves
Inasmuch as it is essential that the law with respect
to the maintenance by member banks of the required
minimum reserve balances be strictly complied with,
s The term "outlying district" is construed to mean that portion of a
city which is located outside of, and at a considerable distance from, the
recognized business and financial center of such city, and includes all
suburban districts within the corporate limits of such city.
70
FEDERAL RESERVE BULLETIN
the Federal Reserve Board, under authority vested in
it by section 19 of the Federal reserve act, hereby
prescribes the following rules governing penalties for
deficiencies in reserves:
(a) Basic penalty.
(1) Deficiencies in reserve balances of member banks
in cities where Federal reserve banks or branches
thereof are located and in such other reserve cities as
the Federal Reserve Board may designate from time to
time will be computed on the basis of average daily
net deposit balances covering semiweekly periods.
Deficiencies in reserve balances of member banks in
all other reserve cities will be computed on the basis of
average daily net deposit balances covering weekly
periods. Deficiencies in reserve balances of other
member banks will be computed on the basis of average
daily net deposit balances covering semimonthly
periods.
(2) Such computations shall be made as at the close
of business on days to be fixed by the Federal reserve
banks with the approval of the Federal Reserve Board.
(3) Penalties for such deficiencies will be assessed
monthly on the basis of average daily deficiencies during
each of the reserve computation periods ending in the
preceding calendar month.
(4) Such penalties shall be assessed at a basic rate of
2 per cent per annum above the Federal reserve bank
discount rate on 90-day commercial paper, in effect
on the first day of the calendar month in which the
deficiencies occurred.
(6) Notice to directors of banks deficient in
reserves.—Whenever it shall appear that a bank is not
paying due regard to the maintenance of its reserves,
the Federal reserve agent will address a letter to each
director of such bank calling attention to the situation
and advising him of the requirements of the law and of
this regulation regarding the maintenance of reserves
and the personal liability of the directors permitting
violations of the law.
(c) Progressive penalty.—The Federal Reserve
Board will also prescribe for any Federal reserve district, upon the application of the Federal reserve bank
of that district, an additional progressive penalty for
continued deficiencies in reserves, in accordance Vith
the following rules:
(1) When a member bank which is required to compute its reserves on a semiweekly basis has an average
deficiency in reserves for 12 consecutive semiweekly
periods, there shall be assessed, in addition to the
penalty at the basic rate, a progressive penalty on
semiweekly deficiencies occurring thereafter, until such
member bank has maintained the required average
reserve for eight consecutive semiweekly periods.
(2) When a member bank which is required to
compute its reserves on a weekly basis has an average
deficiency in reserves for six consecutive weekly
periods, there shall be assessed, in addition to the
penalty at the basic rate, a progressive penalty on
weekly deficiencies occurring thereafter, until such
member bank has maintained the required average
reserve for four consecutive weekty periods.
(3) When any other member bank has an average
deficiency in reserves for three consecutive semimonthly
periods, there shall be assessed, in addition to the
penalty at the basic rate, a progressive penalty on
semimonthly deficiencies occurring thereafter, until
such member bank has maintained the required average
reserve for two consecutive semimonthly periods.
(4) Such progressive penalty shall be at the rate of
1 per cent per annum for the first calendar month in
which same is effective and shall increase at the rate
JANUARY . 1928
of 1 per cent per annum for each consecutive calendar
month thereafter in which the bank's reserve deficiencies are subject to the progressive penalty; provided
that the maximum penalty charged shall not exceed
10 per cent per annum.
(d) Continued deficiencies.—Whenever any member
bank has an average deficiency in reserves for each
reserve computation period during six consecutive
months, the Federal reserve agent shall promptly
report the fact to the Federal Reserve Board with a
recommendation as to whether or not the board should:
(1) In the case of a national bank, direct the Comptroller of the Currency to bring suit to forfeit the charter
of such national bank pursuant to section 2 of the
Federal reserve act; or
(2) In the case of a State member bank, institute
proceedings to require such bank to surrender its stock
in the Federal reserve bank and to forfeit all rights and
privileges of membership pursuant to section 9 of the
Federal reserve act; or
(3) In either case, take such other action as the Federal reserve agent may recommend or the Federal
Reserve Board may consider advisable.
SECTION V.—Loans and dividends while reserves are
deficient
It is unlawful for any member bank the reserves of
which are at any time deficient to make any new loans
or pay any dividends unless and until the total reserves
required by law are fully restored, and the payment
of penalties for deficiencies in reserves does not exempt
member banks from this prohibition of law. As provided above, penalties for deficiencies in reserves are
computed on the basis of the average reserve balances
for semiweekly, weekly, or semimonthly periods; but
this prohibition of law applies whenever the reserves
are deficient for one day or more, regardless of whether
or not the average reserve balances for the semiweekly,
weekly, or semimonthly period are deficient.
REGULATION E, SERIES^OF 1928
(Superseding Regulation[E of 1924)
PURCHASE OF WARRANTS
SECTION I.—Statutory requirements
Section 14 of the Federal reserve act reads in part as
follows:
Every Federal reserve bank shall have' powered To buy and sell, at home or abroad, bonds and notes of the United
States, and bills, notes, revenue bonds, and warrants with a maturity
from date of purchase of not exceeding six months, issued in anticipation
of the collection of taxes or in anticipation'of the receipt of assured revenues by any State, county, district, political subdivision, or municipality
in the continental United States, including irrigation, drainage, and
reclamation districts, such purchases to be made in accordance with rules
and regulations prescribed by the Federal^ Reserve^ Board.
SE CTION II.—Definitions
Within the meaning of this regulation—
The term "warrant" shall be construed to mean
"bills, notes, revenue bonds, and warrants with a
maturity from date of purchase of not exceeding six
months."
The term "municipality" shall be construed
mean "State, county, district, political subdivision, or
municipality in the continental United States, including irrigation, drainage, and reclamation districts."
JANUARY, 1928
FEDERAL RESERVE BULLETIN
The term "net funded indebtedness" shall be construed to mean the legal gross indebtedness of the
municipality (including the amount of any school
district or other bonds which depend for their redemption upon taxes levied upon property within the
municipality) less the aggregate of the following items:
(1) The amount of outstanding bonds or other debt
obligations made payable from current revenues;
(2) The amount of outstanding bonds issued for the
purpose of providing the inhabitants of a municipality with public utilities, such as waterworks, docks,
electric plants, transportation facilities, etc.: Provided,
That evidence is submitted showing that the income
from such utilities is sufficient for maintenance, for
payment of interest on such bonds, and for the accumulation of a sinking fund sufficient for their redemption at maturity;
(3) The amount of outstanding improvement bonds,
issued under laws which provide for the levying of
special assessments against abutting property in
amounts sufficient to insure the payment of interest on
the bonds and the redemption thereof at maturity:
Provided, That such bonds are direct obligations of the
municipality and included in the gross indebtedness of
the municipality; and
(4) The total of all sinking funds accumulated for the
redemption of the gross indebtedness of the municipality, except sinking funds applicable to bonds described in (1), (2), and (3) above.
SECTION III.—Class of warrants eligible for purchase
Any Federal reserve bank may purchase warrants
issued by a municipality in anticipation of the collection of taxes or in anticipation of the receipt of assured
revenues, provided—
(a) They are the general obligations of the entire
municipality; it being intended to exclude as ineligible
for purchase all such obligations as are payable from
"local benefit" and "special assessment" taxes when
the municipality at large is not directly or ultimately
liable;
(6) They are issued in anticipation of taxes or revenues which are due and payable on or before the date
of maturity of such warrants; but the Federal Reserve
Board may waive this condition in specific cases. For
the purposes of this regulation, taxes shall be considered as due and payable on the last day on which they
may be paid without penalty;
(c) They are issued by a municipality—
(1) Which has been in existence for a period of .10
years;
(2) Which for a period of 10 years previous to the
purchase has not defaulted for longer than 15 days in
the payment of any part of either principal or interest
of any funded debt authorized to be contracted by it;
(3) Whose net funded indebtedness does not exceed
10 per centum of the valuation of its taxable property,
to be ascertained by the last preceding valuation of
property for the assessment of taxes.
SECTION IV.—"Existence" and "nondefault"
Warrants will be construed to comply with that part
of Section III (c) relative to term of existence and nondefault, under the following conditions:
(1) Warrants issued by or in behalf of any municipality which was, subsequent to the issuance of such
warrants, consolidated with or merged into an existing
political division which meets the requirements of these
regulations, will be deemed to be the warrants of such
political division: Provided, That such warrants were
71
assumed by such political division under statutes and
appropriate proceedings the effect of which is to make
such warrants general obligations of such assuming
political division and payable, either directly or ultimately, without limitation to a special fund from the
proceeds of taxes levied upon all the taxable real and
personal property within its territorial limits.
(2) Warrants issued by or in behalf of any municipality which was, subsequent to the issuance of such
warrants, wholly succeeded by a newly organized
political division whose term of existence, added to
that of such original political division or of any other
political division so succeeded, is equal to a period of
10 years will be deemed to be warrants of such succeeding political division: Provided, That during such period
none of such political divisions shall have defaulted for
a period exceeding 15 days in the payment of any part
of either principal or interest of any funded debt authorized to be contracted by it: And provided further,
That such warrants were assumed by such new political
division under statutes and appropriate proceedings
the effect of which is to make such warrants general
obligations of such assuming political division and payable, either directly or ultimately, without limitation
to a special fund from the proceeds of taxes levied upon
all the taxable real and personal property within its
territorial limits.
(3) Warrants issued by or in behalf of any municipality which, prior to such issuance, became the successor of one or more, or was formed by the consolidation or merger of two or more, preexisting political
divisions, the term of existence of one or more of which,
added to that of such succeeding or consolidated political division, is equal to a period of 10 years, will be
deemed to be warrants of a political division which has
been in existence for a period of 10 years: Provided,
That during such period npne of such original, succeeding, or consolidated political divisions shall have defaulted for a period exceeding 15 days in the payment
of any part of either principal or interest of any funded
debt authorized to be contracted by it.
SECTION V.—Limitations
(a) Except with the approval of the Federal Reserve
Board, no Federal reserve bank shall purchase and
hold an amount in excess of 25 per cent of the total
amount of warrants outstanding at any time and
issued in conformity with provisions of section 14(6),
above quoted, and actually sold by a municipality.
(b) Except with the approval of the Federal Reserve
Board, the aggregate amount invested by any Federal
reserve bank in warrants of all kinds shall not exceed
at the time of purchase a sum equal to 10 per cent of
the deposits kept by its member banks with such
Federal reserve bank.
(c) Except with the approval of the Federal Reserve
Board, the maximum amount which may be invested
at the time of purchase by any Federal reserve bank
in warrants of any single municipality shall be limited
to the following percentages of the deposits kept in
such Federal reserve bank by its member banks:
Five per cent of such deposits in warrants of a municipality of 50,000 population or over;
Three per cent of such deposits in warrants of a
municipality of over 30,000 population, but less than
50,000;
One per cent of such deposits in warrants of a municipality of over 10,000 population, but less than
30,000.
(d) Any Federal reserve bank may purchase from
any of its member banks warrants of any municipality,
72
FEDERAL RESERVE BULLETIN
indorsed by such member bank, with waiver of demand,
notice, and protest if such warrants comply with Sections III and V (b) of these regulations, except that
where a period of 10 years is mentioned in III (c) hereof
a period of 5 years shall be substituted for the purposes
of this clause.
SECTION
VI.—Warrants of small municipalities
Warrants of a municipality of 10,000 population or
less shall be purchased only with the special approval
of the Federal Reserve Board.
The population of a municipality shall be determined
by the last Federal or State census. Where it can not
be exactly determined the Federal Reserve Board will
make special rulings.
SECTION
VII.—Opinion of counsel
JANUARY,
1928
In any case in which the laws of a State require that a corporation
acting as trustee, executor, administrator, or in any capacity specified
in this section, shall take an oath or make an affidavit, the president,
vice president, cashier, or trust officer of such national bank may take
the necessary oath or execute the necessary affidavit.
It shall be unlawful for any national banking association to lend any
officer, director, or employee any funds held in trust under the powers
conferred by this section. Any officer, director, or employee making
such loan, or to whom such loan is made, may be fined not more than
$5,000, or imprisoned not more than five years, or may be both fined
and imprisoned, in the discretion of the court.
In passing upon applications for permission to exercise the powers
enumerated in-this subsection, the Federal Reserve Board may take
into consideration the amount of capital and surplus of the applying
bank, whether or not such capital and surplus is sufficient under the
circumstances of the case, the needs of the community to be served, and
any other facts and circumstances that seem to it proper, and may grant
or refuse the application accordingly: Provided, That no permit shall
be issued to any national banking association having a capital and surplus less than the capital and surplus required by State law of State
banks, trust companies, and corporations exercising.such powers.
SECTION
II.—Applications
A national bank desiring to exercise any or all of the
powers authorized by section 11 (fc) of the Federal
reserve act, as amended by the act of September 26,
1918, shall make application to the Federal Reserve
Board, on a form approved by said board, for a special
permit authorizing it to exercise such powers. In the
case of an original application—that is, where the
applying bank has never been granted the right to
exercise any of the powers authorized by section 11 (fc)—
REGULATION F, SERIES OF 1928
the application should be made on F. R. B. Form 61.
(Superseding Regulation F of 1924)
In the case of a supplemental application—that is,
where the applying bank has already been granted the
TRUST POWERS OF NATIONAL BANES
right to exercise one or more of the powers authorized
by section 11 (k)—the application should be made on
SECTION I.—Statutory provisions
F. R. B. Form 61-6. Both forms are made a part of
The Federal reserve act as amended by the act of this regulation and may be obtained from the Federal
Reserve Board or any Federal reserve bank.
September 26, 1918, provides in part:
In the case of the organization of a new national
SEC. 11. The Federal Reserve Board shall be authorized and embank, the conversion of a State bank or trust company
powered:
(k) To grant by special permit to national banks applying therefor, into a national bank, the consolidation of two national
when not in contravention of State or local law, the right to act as trustee, banks, or the consolidation of a State bank or trust
executor, administrator, registrar of stocks and bonds, guardian of
estates, assignee, receiver, committee of estates of lunatics, or in any other company with a national bank under the charter of the
fiduciary capacity in which State banks, trust companies, or other cor- latter, application for such a permit may be made in
porations which come into competition with national banks are per- advance on behalf of the new, converted, or conmitted to act under the laws of the State in which the national bank
solidated national bank, and the permit may be issued
is located.
Whenever the laws of such State authorize or permit the exercise of simultaneously with the consummation of such organiany or all of the foregoing powers by State banks, trust companies, or zation, conversion, or consolidation. In the case of the
other corporations which compete with national banks, the granting to
and the exercise of such powers by national banks shall not be deemed organization of a new national bank, the application
to be in contravention of State or local law within the meaning of this act. may be made on behalf of the new national bank by
National banks exercising any or all of the powers enumerated in this
subsection shall segregate all assets held in any fiduciary capacity from the organizers thereof. In the case of the conversion
the general assets of the bank and shall keep a separate set of books and of a State bank or trust company into a national bank,
records showing in proper detail all transactions engaged in under author- the application may be made by the State bank or
ity of this subsection. Such books and records shall be open to inspec- trust company on behalf of the national bank into
tion by the State authorities to the same extent as the books and records
of corporations organized under State law which exercise fiduciary which it is to be converted. In the case of the conpowers, but nothing in this act shall be construed as authorizing the solidation of two or more national banks or the conState authorities to examine the books, records, and assets of the national solidation of a State bank or trust company with a
bank which are not held in trust under authority of this subsection.
No national bank shall receive in its trust department deposits of national bank under the charter of the latter, the
current funds subject to check or the deposit of checks, drafts, bills of application may be made by the national bank the
exchange, or other items for collection or exchange purposes. Funds charter of which is to be retained.
deposited or held in trust by the bank awaiting investment shall be
Opinion of recognized counsel on municipal issues
or of the regularly appointed counsel of the municipality as to the legality of the issue shall be secured and
approved in each case by counsel for the Federal
reserve bank.
carried in a separate account and shall not be used by the bank in the
conduct of its business unless it shall first set aside in the trust depart- SECTION III.—Consolidation of two or more national
ment United States bonds or other securities approved by the Federal
banks
Reserve Board.
In the event of the failure of such bank the owners of the funds held in
T
trust for invesment shall have a lien on the bonds or other securities so
Where tw o or more national banks consolidate under
set apart in addition to their claim against the estate of the bank.
Whenever the laws of a State require corporations acting in a fiduciary the provisions of the act of November 7, 1918, and any
capacity, to deposit securities with the State authorities for the protec- one of such banks has, prior to such consolidation,
tion of private or court trusts, national banks so acting shall be required
to make similar deposits and securities so deposited shall be held for the received a permit from the Federal Reserve Board to
act in fiduciary capacities, the rights existing under
protection of private or court trusts, as provided by the State law.
National banks in such cases shall not be required to execute the bond such permit pass by operation of law to the consolidated
usually required of individuals if State corporations under similar cir- bank and the consolidated bank may exercise such
cumstances are exempt from this requirement.
National banks shall have power to execute such bond when so fiduciary powers in the same manner and to the same
extent as the bank to which such permit was originally
required by the laws of the State.
JANUARY, 1928
73
FEDERAL RESERVE BULLETIN
issued. In order that the consolidated bank's records
may be complete and its right to exercise such fiduciary
powers may not be questioned, however, it is advisable
for the consolidated bank to obtain from the Federal
Reserve Board a permit to exercise fiduciary powers
in its own name. Such a permit may be applied for in
advance of the consolidation and may be issued in
the name of the consolidated bank effective when the
consolidation is consummated.
consolidation becomes effective, unless such national
bank already has such a permit.
SECTION V.—Separate trust departments
Every national bank which obtains from the Federal
Reserve Board a permit to act in fiduciary capacities
shall establish a separate trust department. Such
department shall be established before such bank
undertakes to act in any fiduciary capacity and shall
be placed under the management of an officer or
SECTION IV.—Consolidation of State bank with Na- officers whose duties shall be prescribed by the board
tional bank
of directors of the bank, either by an amendment to
the by-laws of the bank or by a resolution duly entered
Section 3 of the act of November 7, 1918, as amended in the minutes of the board of directors.
by section 1 of the act of February 25, 1927, which
authorizes any bank, trust company, savings bank, or SECTION VI.—Deposit of securities with State authorities
other banking institution incorporated under the laws
of any State or of the District of Columbia to be conWhenever the laws of a State require corporations
solidated directly with a national bank located in the acting in a fiduciary capacity to deposit securities with
same county, city, town, or village under the charter the State authorities for the protection of private or
of such national bank, provides in part that when such court trusts, every national bank in such State which
consolidation is effected—
obtains a permit from the Federal Reserve Board to
* * * all the rights, franchises, and interests of such State or district act in fiduciary capacities shall, before undertaking to
bank so consolidated with a national banking association in and to act in such capacities, make a similar deposit of securievery species of property, real, personal, and mixed, and choses in action
thereto belonging, shall be deemed to be transferred to and vested in such ties. Such securities shall be deposited with the State
national banking association into which it is consolidated without any authorities, unless the State authorities refuse to accept
deed or other transfer, and the said consolidated national banking association shall hold and enjoy the same and all rights of property, fran- them. If the State authorities refuse to accept such
chises, and interests including the right of succession as trustee, executor, or securities, they shall be deposited with the Federal
in any other fiduciary capacity in the same manner and to the same extent as reserve agent of the district in which such national
was held and enjoyed by such State or district bank so consolidated with such
bank is located. Securities so deposited shall be held
national banking association.
*
•
•
•
*
for the protection of private or court trusts, as provided1
The words "State bank," "State banks," "bank," or "banks," as used by the State law.
in this section, shall be held to include trust companies, savings banks, or
other such corporations or institutions carrying on the banking business SECTION VII.—Custody of trust securities and investunder the authority of State laws.
ments
The purpose of this provision is to make clear the
right of such a consolidated national bank to succeed
to the specific trusteeships, executorships, and other
fiduciary appointments under which the State institution was acting prior to the consolidation or in which
it had been appointed or designated to act under wills
or other instruments which had not become effective
at the time of consolidation through the death of a
testator, the probate of a will or otherwise; but it does
not confer upon such national banks the right to act
generally in fiduciary capacities or to undertake any
new trust business. It is necessary for the consolidated
national bank to have a permit from the Federal
Reserve Board to act in fiduciary capacities, therefore,
before undertaking to act generally in fiduciary capacities or to accept any new trust business. If the national
bank does not desire to act generally in fiduciary capacities or to accept any new trust business, but desires
merely to continue to execute the specific trusteeships,
executorships, and other fiduciary affairs which were
actually being executed by the State institution at the
time of the consolidation or which the State institution
had been designated to execute under wills or other
instruments which had not yet become effective
through the death of the testator, the probate of the
will or otherwise, it is not technically necessary for the
national bank to have a permit from the Federal
Reserve Board in order to execute such specific trusts;
but it is advisable for the national bank to have such a
permit, in order that.its right to continue to execute
these trusts may not be questioned. In all cases
involving the consolidation of a State institution
having a trust business with a national bank under the
provisions of the above-mentioned act, therefore, the
national bank should obtain from the Federal Reserve
Board a permit to act in fiduciary capacities before the
The securities and investments held in each trust
shall be kept separate and distinct from the securities
owned by the bank and separate and distinct one from
another. Trust securities and investments shall be
placed in the joint custody of two or more officers or
other employees designated by the board of directors of
the bank and all such officers and employees shall be
bonded.
SECTION VIII.—Funds awaiting investment or distribution
(a) In general.—Funds received or held in the trust
department of a national bank awaiting investment or
distribution shall be invested or distributed as soon as
practicable and shall not be held uninvested by the
bank any longer than is reasonably necessary.
(6) Deposits in commercial or savings department
of trustee bank.—Funds received or held in the trust
department of a national bank awaiting investment or
distribution may be deposited in the commercial department or savings department of the bank to the
credit of the trust department; provided that the bank
first delivers to the trust department, as collateral
security—
(1) Bonds, notes, or certificates of indebtedness of
the United States; or
(2) Other readily marketable securities of the classes
in which State trust companies or State banks exercising trust powers are authorized or permitted to invest
trust funds under the laws of the State in which such
bank is located; or
(3) Other readily marketable securities of the classes
defined as "investment securities" pursuant to section
5136 of the Revised Statutes of the United States as
amended by the act of February 25, 1927.
74
FEDERAL RESERVE BULLETIN
JANUARY, 1928
The United States bonds or other securities so de- furnish information or reports required by the Federal
posited as collateral shall be owned by the bank and or State authorities, and such books and records shall
shall at all times be at least equal in market value to be open to the inspection of such authorities.
the amount of trust funds so deposited in the comSECTION XII.—Examinations
mercial department.9
Examiners appointed by the Comptroller of the
SECTION IX.—Investment of trust funds
Currency or designated by the Federal Reserve
(a) Private trusts.—Funds held in trust must be Board will be instructed to make thorough and cominvested as soon as practicable in strict accordance with plete examinations of the cash, securities, accounts,
the terms of the will, deed, or other instrument creating and investments of the trust department of the bank
the trust. Where the instrument creating the trust at the same time that examination is made of the
contains provisions authorizing the bank, its officers, banking department, and may make such examinaor its directors to exercise their discretion in the matter tions at any other time.
of investments, funds held in trust may be invested SECTION XIII.—Insolvency or voluntary liquidation
only in those classes of securities which are approved
of bank
by the directors of the bank or a committee of directors
(a) Insolvency.—Whenever a national bank exercisappointed for that purpose. Where the instrument
creating the trust does not specify the character or ing fiduciary powers becomes insolvent and a receiver
class of investments to be made and does not expressly is appointed therefor by the Comptroller of the Curvest in the bank, its officers, or its directors a discretion rency, such receiver will, pursuant to the instructions
in the matter of investments, funds held in trust shall of the Comptroller of the Currency and to the orders of
be invested in any securities in which corporate or the court or courts of appropriate jurisdiction, proceed
individual fiduciaries in the State in which the bank to close such trusts and estates as can be closed
promptly and transfer to substitute fiduciaries all
is located may lawfully invest.
(b) Court trusts.—Except as hereinafter provided, trusts and estates which can not be closed promptly.
(6) Voluntary liquidation.—Whenever a national
a national bank acting as executor, administrator, or
in any other fiduciary capacity, under appointment by bank exercising fiduciary powers is placed in voluntary
a court of competent jurisdiction, shall make all invest- liquidation, the liquidating agent shall, in accordance
ments under an order of that court, and copies of all with the laws of the State in which such national
such orders shall be filed and preserved with the records bank is located, proceed at once to liquidate the affairs
of the trust department of the bank. If the court by of the trust department as follows:
1. All voluntary trusts which can be canceled shall
general order vests a discretion in the national bank
to invest funds held in trust, or if under the laws of be canceled as soon as possible and all assets and
the State in which the bank is located corporate fidu- papers thereof shall be delivered to the rightful owner
ciaries appointed by the court are permitted to exercise or owners.
2. All court trusts and estates under the jurisdicsuch discretion, the national bank so appointed may
invest such funds in any securities in which corporate tion of a court shall be closed or disposed of as soon
or individual fiduciaries in the State in which the as possible in accordance with the orders or instructions of the court having jurisdiction.
bank is located may lawfully invest.
3. All other trusts which can be closed promptly
shall be closed as soon as possible and final accountSECTION X.—Compensation of bank
ing made therefor.
A national bank acting in a fiduciary capacity is
4. All other trusts which can not be closed promptly
entitled to receive for its services such fee or compensa- shall be transferred by appropriate legal proceedings
tion as may be allowed by State law or provided for to substitute trustees or other fiduciaries.
in the will, deed, court order, or other instrument creatSECTION XIV.—Conformity with State laws
ing the trust. If the amount of such fee or compensation is not regulated by State law or stipulated or proNothing in these regulations shall be construed to
vided for in the instrument creating the trust, the give a national bank exercising the powers permitted
national bank may charge or deduct not more than a under the provisions of section 11 (k) of the Federal
reasonable fee or compensation. Where the bank is reserve act, as amended, any rights or privileges in
acting in a fiduciary capacity under appointment by a contravention of the laws of the State in which the
court, it may receive such fee or compensation as shall bank is located within the meaning of that act.
be allowed or approved by that court.
SECTION XV.—Changes in regulations
After the deduction of a proper fee or compensation,
determined in the manner prescribed above, all income
These regulations are subject to change by the
derived from the investment of the funds of a trust shall Federal Reserve Board; provided, however, that no
be paid over to, or credited to the account of, such such change shall prejudice any obligation undertaken
trust.
in good faith under regulations in effect at the time
the obligation was assumed.
SECTION XI.—Books and accounts
All books and records of the trust department shall
be kept separate and distinct from other books and
records of the bank. All accounts opened shall be so
kept as to enable the national bank at any time to
• The act requires that the bank shall set aside in the trust department
"United States bonds or other securities approved by the Federal
Reserve Board." This provision of the regulations is intended as a general approval by the Federal Reserve Board of all securities which comply with the requirements thereof and specific approval by the Federal
Reserve Board is unnecessary as to such securities. The board will not
approve any securities which do not comply with these requirements.
REGULATION G, SERIES OF 1928
(Superseding Regulation M of 1926)
REDISCOUNT OF NOTES SECURED BY ADJUSTED SERVICE
CERTIFICATES
SECTION I.—Statutory provisions
Under the terms of the World War adjusted compensation act as amended, loans may lawfully be made
to veterans upon their adjusted service certificates
FEDERAL RESERVE BULLETIN
JANUABT, 1028
only in accordance with the provisions of section 502
thereof.
Any national bank, or any bank or trust company
incorporated under the laws of any State, Territory,
possession, or the District of Columbia is authorized,
after the expiration of two years after the date of the
certificate, to loan to any veteran upon his promissory
note secured by his adjusted service certificate any
amount not in excess of the loan value of the certificate,
which is stated on the face of the certificate. The
law provides that the rate of interest charged upon
the loan by the lending bank shall not exceed by
more than 2 per cent per annum the rate charged at
the date of the loan for the discount of 90-day commercial paper by the Federal reserve bank of the
Federal reserve district in which the lending bank is
located.
Upon the indorsement of any bank, which shall be
deemed a waiver of demand, notice and protest by
such bank as to its own indorsement exclusively, and,
subject to regulations to be prescribed by the Federal
Reserve Board, any such note secured by an adjusted
service certificate and held by a bank is made eligible
for rediscount with the Federal reserve bank of the
Federal reserve district in which such bank is located,
whether or not the bank offering the note for rediscount is a member of the Federal reserve system and
whether or not it acquired the note in the first instance
from the veteran or acquired it by transfer upon the
indorsement of any other bank; provided that at the
time of rediscount such note has a maturity not in
excess of nine months, exclusive of days of grace, and
complies in all other respects with the provisions of
the law, the regulations of the United States Veterans'
Bureau, and the regulations of the Federal Reserve
Board.
SECTION
II.—Definitions
Within the meaning of this regulation—
(a) The term " t h e a c t " shall mean the World War
adjusted compensation act as amended;
(6) The term "director" shall mean the Director of
the United States Veterans' Bureau;
(c) The term "certificate" shall mean an adjusted
service certificate issued under the provisions pf section 501 of the World War adjusted compensation act
as amended;
(d) The term "veteran" shall mean any person to
whom an adjusted service certificate has been issued
by the director under the provisions of the World War
adjusted compensation act as amended;
(e) The term " b a n k " shall mean any national bank
or any bank or trust company incorporated under the
laws of any State, Territory, possession, or the District of Columbia;
(/) The term " n o t e " shall mean a promissory note,
negotiable in form, secured by an adjusted service
certificate, and evidencing a loan made by a bank on
the security of such certificate in full compliance with
the provisions of the World War adjusted compensation act as amended and the regulations of the United
States Veterans' Bureau.
SECTION III.—Eligibility
In order to be eligible for rediscount at a Federal
reserve bank, any such note must—
(a) Arise out of a loan made by a bank to a veteran
in full compliance with the provisions of the act and
of any regulation which the director may prescribe;
(&) Be secured by the certificate issued to the maker,
which certificate must accompany the note;
75
(c) Be held by the offering bank in its own right at
the time it is offered for rediscount;
(d) Be negotiable in form and otherwise in the form
approved by the director;
(e) Have a maturity at the time of rediscount not in
excess of nine months, exclusive of days of grace;
(/) Evidence a loan the amount of which does not
exceed the loan value of the certificate for the year in
which such loan was made;
(g) Be payable with interest accruing after the date
of the note at a rate stated in the face of the note,
which rate must not exceed by more than 2 per cent
per annum the rate charged at the date of the loan for
the discount of 90-day commercial paper by the Federal
reserve bank of the Federal reserve district in which the
lending bank is located;
(h) Bear the indorsement of the bank offering it for
rediscount, which indorsement shall be deemed a waiver
of demand, notice, and protest by such bank as to its
own indorsement exclusively;
(i) Be accompanied by the evidence of eligibility
required by this regulation and such other evidence
of eligibility as may be required by the Federal reserve
bank to which it is offered for rediscount; and
(j) Comply in all other respects with the requirements of the" law and of this regulation.
SECTION IV.—Evidence of eligibility
(a) General.—The Federal reserve bank to which a
note is offered for rediscount must be satisfied either
by reference to the note itself or otherwise that the
loan evidenced by the note or any sale, discount, or
rediscount thereof complies in all respects with the
provisions of section 502 of the act and that the note
is eligible for rediscount by a Federal reserve bank
under the terms of the law and the provisions of this
regulation.
(b) Affidavit of lending bank.—Any note offered to a
Federal reserve bank for rediscount must be accompanied by the affidavit required by section 502 (h) of
the act and the regulations of the director, in form
approved by the director, made by an officer of the
bank which made the loan, before a notary public or
other officer designated for the purpose by regulation
of the director, stating that—
(1) Such bank has not charged or collected, or
attempted to charge or collect, directly or indirectly,
any fee or other compensation in respect of any loan
made by such bank to any veteran under section 502
of the act, except the interest authorized by such
section;
(2) The person who obtained the loan evidenced by
such note is known to be the veteran named in the certificate securing such note;
, (3) Such bank has notified the director that it has
made a loan to the veteran named in the certificate, as
required by the regulations of the director; and
(4) Such bank has notified the veteran by mail at
his last known post-office address of any sale, discount,
or rediscount of such note by such bank, as required
by section 502 (b) of the act.
(c) Affidavit of other banks.—If such note is offered
for rediscount by a bank other than the bank which
made the loan thereon, it must also be accompanied
by an affidavit of an officer of the offering bank and
an affidavit of an officer of each other bank which has
sold, discounted, or rediscounted such note, which
affidavit shall be in form approved by the director
and shall state that the bank of which the affiant is an
officer has promptly notified the veteran by mail at
his last known post-office address of the sale, discount,
76
FEDERAL RESERVE BULLETIN
JANUARY,
1928
or rediscount of such note by such bank, as required increased out of net income to equal the capital
required under (a).
by section 502 (b) of the act.
In order to become a member of the Federal reserve
system, therefore, any State bank or trust company
SECTION V.—Application for rediscount
must have a minimum paid-up capital stock at the
Every application for the rediscount of such notes time it becomes a member, as follows:
shall be made on a form approved by the Federal
reserve bank to which such note is offered and shall
Minimum Minimum
contain a certificate of the offering bank to the effect
capital if
capital if
that, to the best of its knowledge and belief, such note If located in a city or town with a population— admitted admitted
arose out of a loan made in full compliance with the
under
under
clause (a) clause (6)
provisions of the act and the regulations of the director
and is eligible for rediscount under the provisions of
section 502 of the act and of this regulation.
$25,000
Not exceeding 3,000 inhabitants
$15,000
SECTION
VI.—Proper bank for rediscount
No such note shall be rediscounted by any Federal
reserve bank for any bank not located in its own
Federal reserve district, except that such notes may be
rediscounted by any Federal reserve bank for any
other Federal reserve bank.
SECTION
VII.—Rate of rediscount
Exceeding 3,000 but not exceeding 6,000
inhabitants
_
Exceeding 6,000 but not exceeding 50,000
inhabitantsExceeding 50,000 inhabitants (except as stated
below)...
_
In an outlying district i° of a city with a population exceeding 50,000 inhabitants; provided
State law permits organization of State
banks in such location with a capital of
$100,000 or less
50,000
30,000
100,000
60,000
200,000
120,000
10
The term "outlying district" is construed to mean that portion of a
city which is located outside of, and at a considerable distance from, the
recognized business and financial center of such city, and includes all
suburban districts within the corporate limits of such city.
The rate of interest charged by any Federal reserve
bank on any such note rediscounted by it shall be the
same as that charged by it for the rediscount of 90-day
notes drawn for a commercial purpose, except that
Any bank admitted to membership under clause (b)
when such notes are rediscounted for another Federal must also, as a condition of membership—the violation
reserve bank the rate shall be that fixed by the Federal of which will subject it to expulsion from the Federal
Reserve Board.
reserve system—increase its paid-up and unimpaired
capital within five years after the approval of its
SECTION VIII.—Rediscounts for nonmember banks application by the Federal Reserve Board to the
amount required under (a). For the purpose of proNo Federal reserve bank shall rediscount such notes viding for such increase, every such bank shall set
for any nonmember bank until such bank has furnished aside each year in a fund exclusively applicable to such
to the Federal reserve bank such information as it capital increase not less than 50 per cent of its net
may request in order to satisfy itself as to the condition earnings for the preceding year prior to the payment
of such bank and the advisability of making the of dividends, and if such net earnings exceed 12 per
cent of the paid-up capital of such bank, then all pet
rediscount for it.
earnings in excess of 6 per cent of the paid-up capital
shall be carried to such fund, until such fund is large
enough to provide for the necessary increase in capital.
REGULATION H, SERIES OF 1928
Whenever such fund shall be large enough to provide
(Superseding Regulation H of 1924)
for the necessary increase in capital, or at such other
MEMBERSHIP OF STATE BANKS AND TRUST COMPANIES time as the Federal Reserve Board may require, such
fund or as much thereof as may be necessary shall be
converted into capital by a stock dividend or used in
SECTION I.—Banks eligible for membership
any other manner permitted by State law to increase
1. Incorporation.—In order to be eligible for mem- the capital of such bank to the amount required under
bership in a Federal reserve bank, a State bank or (a): Provided, however, That such bank may be
trust company must have been incorporated under a excused in whole or in part from compliance with the
special or general law of the State or district in which terms of this paragraph if it increases its capital
through the sale of additional stock: Provided, further,
it is located.
2. Capital stock.—Under the terms of section 9 of That nothing herein contained shall be construed as
the Federal reserve act as amended, no applying bank requiring any such bank to violate any provision of
can be admitted to membership in a Federal reserve State law, and in any case in which the requirements
of this paragraph are inconsistent with the requirebank unless—
(a) It possesses a paid-up, unimpaired capital ments of State law the requirements of this paragraph
sufficient to entitle it to become a national banking may be waived and the subject covered by a special
association in the place where it is situated, under the condition of membership to be prescribed by the
Federal Reserve Board.
provisions of the national bank act; or
3. Branches.—In order to be eligible for member(6) It possesses a paid-up, unimpaired capital of at
least 60 per cent of such amount, and, under penalty ship in a Federal reserve bank, a State bank or trust
of loss of membership, complies with the rules and company must relinquish any branch or branches
regulations herein prescribed by the Federal Reserve established by it after February 25, 1927, beyond
Board fixing the time within which and the method by the corporate limits of the city, town, or village in
which the unimpaired capital of such bank shall be which the parent bank is situated.
JANUARY, 1928
FEDERAL RESERVE BULLETIN
77
(3) Except after applying for and receivingfthe permission of the Federal Reserve Board, such bank or
Any eligible State bank or trust company may trust company shall not acquire an interest in any
make application on F. R. B. Form 83a, made a part other bank or trust company, through the purchase
of this regulation, to the Federal Reserve Board for of stock in such other bank or trust company.
an amount of capital stock in the Federal reserve
(4) Such bank or trust company shall maintain its
bank of its district equal to 6 per cent of the paid-up loans within the limits prescribed by the laws of the
capital stock and surplus of such State bank or trust State in which it is located.
company. This application must be forwarded direct
(5) Such bank or trust company shall reduce to an
to the Federal reserve agent of the district in which amount equal to 10 per cent of its capital and surplus
the applying bank or trust company is located and all balances in excess thereof, if any, which are carried
must be accompanied by Exhibits I, II, and III, with banks or trust companies which are not members
referred to on page 1 of the application blank.
of the Federal reserve system, and shall at all times
maintain such balances within such limits.
SECTION III.—Approval of application
(6) Such bank or trust companjr may accept drafts
and bills
upon it of
In passing upon an application the Federal Reserve permitted of exchange drawn State of its any character
by the laws of the
incorporation;
Board will consider especially—
but the aggregate amount
acceptances outstand(1) The financial condition of the applying bank or ing at any one time shall of allexceed the limitations
not
trust company and the general character of its manage- imposed by section 13 of the Federal reserve act, that
ment;
is, the
(2) Whether the corporate powers exercised by the at any aggregate amount of acceptances;-outstanding
one time
of
applying bank or trust company are consistent with furnishing dollar which are drawn for the purpose by
exchange!in countries specified;
the purposes of the Federal reserve act; and
the Federal Reserve Board shall not exceed 50 per cent
(3) Whether the laws of the State or district in of its capital and surplus, and the aggregate amount of
which the applying bank or trust companj' is located all other acceptances, whether domestic or foreign,
contain provisions likely to prevent proper compliance outstanding at any one time shall not exceed 50 per
with the provisions of the Federal reserve act and the cent of its capital and surplus, except that the Federal
regulations of the Federal Reserve Board made in Reserve Board, upon the application of such bank
conformity therewith.
or trust company, may increase this limit from 50 per
If, in the judgment of the Federal Reserve Board, an cent to 100 per cent of its capital and surplus: Proapplying bank or trust company conforms to all the vided, however, That in no event shall the aggregate
requirements of the Federal reserve act and these amount of domestic acceptances outstanding at any
regulations, and is otherwise qualified for membership, one time exceed 50 per cent of the capital and surplus
the board will approve the application subject to such of such bank or trust company.
conditions as it may prescribe pursuant to the provisions of the Federal reserve act. W^hen the con- (7) The board of directors of said bank or trust comditions imposed by the board have been accepted by pany shall adopt a resolution authorizing the interthe applying bank or trust company and the applying change of reports and information between the Federal
bank or trust company has made a payment to the reserve bank of the district in which such bank or trust
Federal reserve bank of its district of one-half of the company is located and the banking authorities of the
amount of its subscription, i. e., 3 per cent of the amount State in which such bank is located.
of its paid-up capital and surplus, the appropriate SECTION V.—Establishment or maintenance of branches
certificate of stock will be issued by the Federal reserve
Every State bank which is, or hereafter becomes,
bank and a certificate of membership will be issued by
the Federal Reserve Board. The remaining half of a member of the Federal reserve system will be reits subscription shall be subject to call when deemed quired to comply strictly with the following provision
of section 9 of the Federal reserve act as amended by
Necessary by the Federal Reserve Board.
the act of February 25, 1927:
SECTION II.—Application for membership
SECTION IV.—Conditions of membership
Pursuant to the authority contained in the first
paragraph of section 9 of the Federal reserve act,
which provides that the Federal Reserve Board may
permit applying banks to become members of the
Federal reserve system "subject to the provisions of
this act and to such conditions as it may prescribe
pursuant thereto," the Federal Reserve Board will
prescribe the following conditions of membership for
each bank or trust company hereafter applying for
admission to the Federal reserve system, in addition
to such other conditions as the board may consider
necessary or advisable in the particular case—
(1) Except with the permission of the Federal
Reserve Board, such bank or trust company shall not
cause or permit any change to be made in the general
character of its business or in the scope of the corporate
powers exercised by it at the time of admission to
membership.
(2) Such bank or trust company shall at all times
conduct its business and exercise its powers with due
regard to the safety of its depositors.
Any such State bank which, at the date of the approval of this act, has
established and is operating a branch or branches in conformity with
the State law, may retain and operate the same while remaining or upon
becoming a stockholder of such Federal reserve bank; but no such State
bank may retain or acquire stock in a Federal reserve bank except upon
relinquishment of any branch or branches established after the date of
the approval of this act beyond the limits of the city, town, or village in
which the parent bank is situated.
This has been interpreted to mean that—
1. Any State member bank which, on February 25,
1927, had established arid was actually operating a
branch or branches in conformity with the State law is
permitted to retain and operate the same while remaining a member of the Federal reserve system, regardless
of the location of such branch or branches.
2. Any nonmember State bank which, on February
25, 1927, had established and was actually operating a
branch or branches in conformity with State law may,
if otherwise eligible, become a member of the Federal
reserve system and retain and operate such branches,
regardless of their location.
3. In order to remain a member of the Federal reserve system, every State member bank must relinquish any branch or branches established after Febru-
78
FEDERAL RESERVE BULLETIN
ary 25, 1927, beyond the corporate limits of the city,
town, or village in which the parent bank is situated.
4. Any State member bank which establishes any
branch or branches after February 25, 1927, beyond the
corporate limits of the city, town, or village in which
the parent bank is situated must either (a) relinquish
such branch or branches or (b) forfeit all rights and
privileges of membership and surrender its stock in the
Federal reserve bank.
5. No State bank which has established any branches
subsequent to February 25, 1927, beyond the corporate
limits of the city, town, or village in which the parent
bank is situated may become a member of the Federal
reserve system except upon relinquishment of every
such branch.
6. State member banks may establish branches
within the corporate limits of the city, town, or village
in which the parent bank is situated without obtaining
permission of the Federal Reserve Board.
SECTION VI.—Powers and restrictions
Every State bank or trust company while a member
of the Federal reserve system—
(1) Shall retain its full charter and statutory rights
as a State bank or trust company, subject to the provisions of the Federal reserve act, to the regulations of
the Federal Reserve Board, and to the conditions prescribed by the Federal Reserve Board and agreed to
by such State bank or trust company prior to its admission ;
(2) Shall enjoy all the privileges and observe all
those requirements of the Federal reserve act and of
the regulations of the Federal Reserve Board made in
conformity therewith which are applicable to State
banks and~ trust companies which have become member
banks; and
(3) Shall comply at all times with any and all conditions of membership prescribed by the Federal Reserve
Board at the time of the admission of such member
bank'to the Federal reserve system.
SECTION VII.—Examinations and reports
Every State bank or trust company, while a member
of the Federal reserve system, shall be subject to examinations made by direction of the Federal Reserve
Board or of the Federal reserve bank by examiners
selected or approved by the Federal Reserve Board.
In order to avoid duplication, examinations of State
banks and trust companies made by State authorities
will be accepted in lieu of examinations by examiners
selected or approved by the board wherever these are
satisfactory to the directors of the Federal reserve bank,
and examiners from the staff of the board or of the
Federal reserve banks will, whenever desirable, be
designated by the board to act with the examination
staff of the State in order that uniformity in the standard of examination may be assured.
Every State bank or trust company, while a member
of the Federal reserve system, shall be required to make
in each year not less than three reports of condition on
F. R. B." Form 105. Such reports shall be made to the
Federal reserve bank of its district on call of such bank,
on dates to be fixed by the Federal Reserve Board.
They shall also make semiannual reports of earnings
and dividends on F. R. B. Form 107. F. R. B. Forms
105 and 107 are made a part of this regulation.
JANUARY,
1928
REGULATION I, SERIES OF 1928
(Superseding Regulation I of 1924)
INCREASE OR DECREASE OF CAPITAL STOCK OF FEDERAL RESERVE BANKS AND CANCELLATION OF OLD
AND ISSUE OF NEW STOCK CERTIFICATES
SECTION I.—Increase of capital stock
(a) New national banks.—Each new national bank,
while in process of organization (including each nonmember State bank converting into a national bank,11
while in process of such conversion) shall file with the
Federal reserve bank of its district an application to
the Federal Reserve Board on F. R. B. Form 30 (or
as to a nonmember State bank converting into# a
national bank, on F. R. B. Form 30a), made a part*of
this regulation, for an amount of capital stock of the
Federal reserve bank of its district equal to 6 per cent
of the paid-up capital stock and surplus of such new
national bank. Such application shall be forwarded
promptly to the Federal Reserve Board, and if it is
found to be in proper form the Federal Reserve Board
will grant its approval effective if and when the Comptroller of the Currency issues to such bank his certificate
of authority to commence business. If its application
is approved, the applying bank shall thereupon make a
payment to the Federal reserve bank of its district of
one-half of the amount of its subscription, i. e., 3 per
cent of the amount of its paid-up capital and surplus;
and upon receipt of this payment the Federal reserye
bank will issue a receipt therefor, place the amount in
a suspense account, and notify the Federal Reserve
Board that it has been received. When the Comptroller of the Currency issues to such applying bank
his certificate of authority to commence business the
Federal reserve bank shall issue a stock certificate to
the applying bank, and the capital stock of the Federal
reserve bank represented by such certificate shall be
considered as issued as of the date upon which the
Comptroller of the Currency issues his certificate of
authority to commence business. The remaining half
of the subscription of the applying bank shall be subject
to call when deemed necessary by the Federal Reserve
Board.
(b) State banks becoming members.—Any State
bank or trust company desiring to become a member
of the Federal reserve system shall make application
as provided in Regulation H, and when such application has been approved by the Federal Reserve Board
and all requirements of Regulation H have been complied with the Federal reserve bank shall issue an
appropriate certificate of stock as provided in Regulation H.
(c) Increase of capital or surplus by member
banks.—Whenever any member bank shall increase the
aggregate amount of its paid-up capital stock and surplus, it shall file with the Federal reserve bank of which
it is a member an application on F. R. B. Form 56,
11
Whenever any State member bank is converted into a national
bank under sec. 5154 of the Revised Statutes, as amended by sec. 8 of
the Federal reserve act, it may continue to hold as a national bank its
shares of Federal reserve bank stock previously held as a State bank,
and need not file any application for Federal reserve bank stock, unless
the aggregate amount of its capital and surplus is increased, in which
event it should file an application for additional stock, as provided in
Section I (c). The certificate of stock issued in the old name of the
member bank, however, should be surrendered and canceled, and a
new certificate should be issued in lieu thereof, in the new name of the
member bank, as provided in Section III.
JANUARY,
1928
FEDERAL RESERVE BULLETIN
made a part of this regulation, for an additional amount
of the capital stock of the Federal reserve bank of its
district equal to 6 per cent of such increase. After such
application has been approved by the Federal reserve
agent and by the Federal Reserve Board, the applying
member bank shall pay to the Federal reserve bank of
its district one-half of the amount of its additional
subscription, and when this amount has been paid the
appropriate certificate of stock shall be issued by the
Federal reserve bank. The remaining half of such
additional subscription shall be subject to call when
deemed necessary by the Federal Reserve Board.
(d) Consolidation of member banks.—Whenever two
or more member banks consolidate and such consolidation results in the consolidated bank acquiring by
operation of law 12 the Federal reserve bank stock
owned by the other consolidating bank or banks, and
which also results in the consolidated bank having an
aggregate capital and surplus in excess of the aggregate
capital and surplus of the consolidating member banks,
such consolidated bank shall file an application for
additional stock, as provided in Section I (c).
(e) Certifying increases of Federal reserve bank
stock.—Whenever the capital stock of any Federal reserve bank shall be increased the board of directors of
such Federal reserve bank shall certify such increase
to the Comptroller of the Currency on F. R. B. Form
58, which is made a part of this regulation. Such certifications shall be made as of the last days of June and
December of each year. A duplicate copy of each
certificate shall be forwarded to the Federal Reserve
Board.
SECTION II.—Decrease of capital stock
(a) Reduction of capital or surplus by member
bank.—Whenever a member bank reduces the amount
of its paid-up capital stock and, in the case of reduction of the paid-up capital of a national bank, such
reduction has been approved by the Comptroller of the
Currency and by the Federal Reserve Board in accordance with the provisions of section 28 of the Federal
reserve act, it shall file with the Federal reserve bank
of which it is a member an application for the surrender
and cancellation of stock on F. R. B. Form 60, which
is made a part of this regulation. When a member
bank reduces the amount of its surplus, it is not required to, but may at its option, file with the Federal
reserve bank of which it is a member an application for
the surrender and cancellation of stock on said F. R. B.
Form 60. When an application so filed as the result of
a reduction in a member bank's paid-up capital stock
or surplus has been approved by the Federal reserve
» Sec. 5 of the Federal reserve act provides that " Shares of the capital
stock of Federal reserve banks owned by member banks shall not be
transferred or hypothecated.'* This provision prevents a transfer of
Federal reserve bank stock by purchase, but does not prevent a transfer by
operation of law. When there is a merger of member banks involving the
liquidation of one of such banks and the purchasing of the assets of the
liquidating bank by the bank continuing in existence, it is necessary for
the liquidating bank to surrender its Federal reserve bank stock and for
the purchasing bank to apply for new stock. On the other hand, if
member banks consolidate, under a statute which does not require the
liquidation of any of the consolidating banks, and the assets and obligations of the consolidating banks are transferred to the consolidated bank by
operation of law, the consolidated bank becomes the owner of the Federal
reserve bank stock of the consolidating banks as soon as the consolidation takes effect and such stock technically need not be surrendered.
The certificates of stock issued in the names of the consolidating banks,
however, should be surrendered and canceled, and a new certificate
should be issued in lieu thereof, in the new name of the consolidated bank,
as provided in Sec. III. A consolidation of national banks under the
act of Congress entitled "An act to provide for the consolidation of
national banking associations,'* approved Nov. 7,1918, meets all of these
conditions.
79
agent and the Federal Reserve Board, the Federal reserve bank shall accept and cancel the stock which the
applying bank is entitled to surrender and shall refund
to the member bank the proportionate amount due
such bank on account of the stock canceled.
(b) Insolvency of member bank.—Whenever a member bank shall be declared insolvent and a receiver
appointed by the proper authorities, such receiver shall,
within six months from the date of his appointment,
file with the Federal reserve bank of which the insolvent
bank is a member an application on F. R. B. Form 87,
which is made a part of this regulation, for the surrender and cancellation of the stock held by such insolvent member bank, and for the refund of all balances
due to it. If the receiver shall fail to make such application within the time specified, the Federal reserve
agent shall report the facts to the Federal Reserve
Board with a recommendation as to the action to be
taken, whereupon the Federal Reserve Board will either
issue an order to cancel such stock or, if the circumstances warrant it, grant the receiver additional time
in which to file such an application. Upon approval
of such an application by the Federal reserve agent and
the Federal Reserve Board, or upon the issuance of
such an order by the Federal Reserve Board, the Federal reserve bank shall cancel such stock and shall adjust accounts between the member bank and the Federal reserve bank by applying to any indebtedness of
the insolvent member bank to such Federal reserve
bank all cash-paid subscriptions made by it on the
stock canceled with one-half of 1 per cent per month
from the period of last dividend, not to exceed the
book value thereof, and the balance, if any, shall be
paid to the duly authorized receiver of such insolvent
member bank.
(c) Voluntary liquidation of member bank.—Whenever a member bank goes into voluntary liquidation,
the liquidating agent or some other person duly authorized by the stockholders or board of directors to act on
behalf of such bank shall, within six months from the
date of the vote to place such bank in voluntary liquidation, file with the Federal reserve bank of which the
liquidating bank is a member an application on F. R.
B. Form 86, if a national bank, and on F. R. B. Form
143, if a State bank, which forms are made a part of
this regulation, for the surrender and cancellation of
the stock held by it and for the refund of all balances
due to such liquidating member bank. If such application is not filed within the time specified, the Federal
reserve agent shall report the facts to the Federal
Reserve Board with a recommendation as to the action
to be taken, whereupon the Federal Reserve Board
will either issue an order to cancel such stock, or, if the
circumstances warrant it, grant additional time in
which to file such an application. Upon approval of
such an application by the Federal reserve agent and
the Federal Reserve Board, or upon the issuance of
such an order by the Federal Reserve Board, the
Federal reserve bank shall cancel such stock and shall
adjust accounts between the liquidating member bank
and the Federal reserve bank by applying to the indebtedness of the liquidating member bank to such
Federal reserve bank all cash-paid subscriptions made
by it on the stock canceled with one-half of 1 per cent
per month from the period of last dividend, not to
exceed the book value thereof, and the balance, if any,
shall be paid to the duly authorized liquidating agent
of such liquidating member bank.
(d) Consolidation of member banks.—Whenever
there is a consolidation of two or more member banks
which results in the consolidated bank acquiring by
80
FEDERAI RESERVE BULLETIN
operation of law (see note 12 on p. 79) the Federal
reserve bank stock owned by the other consolidating
banks, and which also results in the consolidated bank
having a paid-up capital less than the aggregate paid-up
capital of the consolidating member banks, the consolidated bank shall file with the Federal reserve bank
of which it is a member an application for the surrender
and cancellation of stock on F. R. B. Form 60a, which
is made a part of this regulation. Upon the approval
of this application by the Federal reserve agent and
the Federal Reserve Board, the Federal reserve bank
shall accept and cancel the stock which the applying
bank is entitled to surrender, and shall refund to the
applying bank the proportionate amount due such
bank on account of the stock canceled.
(e) Certifying reductions of Federal reserve bank
stock.—All reductions of the capital stock of a Federal
reserve bank shall, in accordance with the provisions
of section 6 of the Federal reserve act, be certified to
the Comptroller of the Currency by the board of directors of such Federal reserve bank on F. R. B. Form 59,
which is made a part of this regulation. Such certifications shall be made as of the* last days of June and
December of each year. A duplicate copy of each
certificate shall be forwarded to the Federal Reserve
Board.
SECTION III.—Cancellation of old and issue of new
stock certificates
Whenever a member bank changes its name or, by
consolidation with another member bank, acquires by
operation of law (see note 12 on p. 79) the Federal
reserve bank stock previously held by such other
member bank, it shall surrender to the Federal reserve
bank the certificate of Federal reserve bank stock
which was issued to it under its old name, or which
was issued to such other member bank. The certificate so surrendered shall be indorsed by the member
bank surrendering it or by the member bank to which
it was originally issued and shall be accompanied by
proper proof of the change of name or consolidation.
Upon receipt of such certificate of stock so indorsed,
together with such proof, the Federal reserve bank
shall cancel the certificate so surrendered and shall
issue in lieu thereof to and in the name of the member
bank surrending it a new certificate for the number of
shares represented by the certificate so surrendered, or
if the member bank is entitled to surrender some of the
stock which is represented by the surrendered certificate, and an application for the surrender and cancellation of such stock is at the same time made in accordance with this regulation, the new certificate shall be
for the number of shares represented by the surrendered
certificate less the number of shares canceled pursuant
to such application. All cases where certificates of
stock are surrendered and new certificates issued in
lieu thereof and in a different name shall be reported
to the Federal Reserve Board by the Federal reserve
agent.
REGULATION J, SERIES OF 1928
JANUARY, 1928
act, as amended by the act approved June 21, 1917,
authorizes each Federal reserve bank to receive from
any nonmember bank or trust company, solely for the
purposes of exchange or of collection, deposits of
current funds in lawful money, national-bank notes,
Federal reserve notes, checks and drafts payable upon
presentation, or maturing notes and bills, provided such
nonmember bank or trust company maintains with its
Federal reserve bank a balance sufficient to offset the
items in transit held for its account by the Federal
reserve bank.
SECTION II.—General requirements
In pursuance of the authority vested in it under
these provisions of law, the Federal Reserve Board,
desiring to afford both to the public and to the various
banks of the country a direct, expeditious, and economical system of chec> collection and settlement of
balances, has arranged to have each Federal reserve
bank exercise the functions of a clearing house and
collect checks for such of its member banks as desire
to avail themselves of its privileges and for such nonmember State banks and trust companies as may maintain with the Federal reserve bank balances sufficient
to qualify them under the provisions of section 13 to
send items to Federal reserve banks for purposes of
exchange or of collection. Such nonmember State
banks and trust companies will hereinafter be referred
to as nonmember clearing banks.
Each Federal reserve bank shall exercise the functions of a clearing house and collect checks under the
general terms and conditions hereinafter set forth,
and each member bank and nonmember clearing bank
shall cooperate fully in the system of check clearance
and collection for which provision is herein made.
SECTION III.—Checks received for collection
(1) Each Federal reserve bank will receive at par
from its member banks and from nonmember clearing
banks in its district, checks 13 drawn on all member and
nonmember clearing banks, and checks drawn on all
other nonmember banks which are collectible at par
in funds acceptable to the Federal reserve bank of the
district in which such nonmember banks are located.
(2) Each Federal reserve bank will receive at par
from other Federal reserve banks, and from all member
and nonmember clearing banks in other Federal reserve
districts which are authorized to route direct for the
credit of their respective Federal reserve banks, checks
drawn on all member and nonmember clearing banks
of its district, and checks drawn on all other nonmember
banks of its district which are collectible at par in
funds acceptable to the collecting Federal reserve bank.
(3) No Federal reserve bank shall receive on deposit
or for collection any check drawn on any nonmember
bank which can not be collected at par in funds acceptable to the Federal reserve bank of the district in which
such nonmember bank is located.
SECTION IV.—Time schedule and availability of credits
SECTION I.—Statutory provisions
(1) Each Federal reserve bank will publish a time
schedule showing the time at which any item sent to it
will be counted as reserve and become available for
withdrawal or other use by the sending bank. For
all checks received, the sending bank will be given
Section 16 of the Federal reserve act authorizes the
Federal Reserve Board to require each Federal reserve
bank to exercise the function of a clearing house for its
member banks, and section 13 of the Federal reserve
*3 A check is generally denned as a draft or order upon a bank or banking
bouse, purporting to be drawn upon a deposit of funds, for the payment
at all events of a certain sum of money to the order of a certain person
therein named, or to him or his order, or to bearer, and payable on
demand.
(Superseding Regulation J of 1924)
CHECK CLEARING AND COLLECTION
JANUARY, 1928
FEDERAL RESERVE BULLETIN
immediate credit, or deferred credit, in accordance with
such time schedule, and as provided below.
(2) For all such checks as are received for immediate
credit in accordance with such time schedule, immediate
credit, subject to final payment, will be given upon the
books of the Federal reserve bank at full face value in the
reserve account or clearing account upon day of receipt,
and the proceeds will at once be counted as reserve and
become available for withdrawal or other use by the
sending bank.
(3) For all such checks as are received for deferred
credit in accordance with such time schedule, deferred
credit, subject to final payment, will be entered upon the
books of the Federal reserve bank at full face value, but
the proceeds will not be counted as reserve nor become
available for withdrawal or other use by the sending
bank until such time as may be specified in such time
schedule,14 at which time credit will be transferred
from the deferred account to the reserve account or
clearing account subject to final payment and will then
be counted as reserve and become available for withdrawal or other use by the sending bank.
81
cular to charge such items to the reserve account or
clearing account of any such bank at any time when
in any particular case the Federal reserve bank deems
it necessary to do so.
(5) Checks received by a Federal reserve bank payable in other districts will be forwarded for collection,
upon the terms and conditions herein provided, to the
Federal reserve bank of the district in which such
checks are payable.
(6) The amount of any check for which payment in
actually and finally collected funds is not received shall
be charged back to the forwarding bank, regardless of
whether or not the check itself can be returned.
SECTION VI.—Other rules and regulations
Each Federal reserve bank shall also promulgate
rules and regulations not inconsistent with the terms
of the law or of this regulation, governing the details
of its check clearing and collection operations. Such
rules and regulations shall be set forth by the Federal
reserve banks in their letters of instruction to their
member and nonmember clearing banks and shall be
binding upon any member or nonmember clearing
SECTION V.—Terms of collection
bank which sends any check to such Federal reserve
The Federal Reserve Board hereby authorizes the bank for collection or to any other Federal reserve
Federal reserve banks to handle such checks subject bank for the account of such Federal reserve bank for
to the following terms and conditions; and each mem- collection.
ber and nonmember clearing bank which sends checks
to any Federal reserve bank for deposit or collection
shall by such action be deemed (a) to authorize the
REGULATION K, SERIES OF 1928
Federal reserve banks to handle such checks subject
to the following terms and conditions, (b) to warrant
(Superseding Regulation K of 1927)
its own authority to give the Federal reserve banks
such authority, and (c) to agree to indemnify any BANKING CORPORATIONS AUTHORIZED TO DO FOREIGN
BANKING BUSINESS UNDER THE TERMS OP SECTION
Federal reserve bank for any loss resulting from the
25(a) OF THE FEDERAL RESERVE ACT
failure of such sending bank to have such authority.
(1) A Federal reserve bank will act only as agent
SECTION I.—Organization
of the bank from which it receives such checks and will
assume no liability except for its own negligence and
Any number of natural persons, not less in any case
its guaranty of prior indorsements.
than five, may form a Corporation 15 under the pro(2) A Federal reserve bank may present such checks visions of section 25 (a) for the purpose of engaging in
for payment or send such checks for collection direct international or foreign banking or other international
to the bank on which they are drawn or at which they or foreign financial operations or in banking or other
are payable, or in its discretion may forward them to financial operations in a dependency or insular possesanother agent with authority to present them for pay- sion of the United States either directly or through the
ment or send them for collection direct to the bank on agency, ownership, or control of local institutions in
which they are drawn or at which they are payable.
foreign countries or in such dependencies or insular
(3) A Federal reserve bank may in its discretion possessions.
and at its option, either directly or through an agent,
accept either cash or bank drafts in payment of or in
SECTION II.—Articles of association
remittance for such checks and shall not be held liable
for any loss resulting from the acceptance of bank
Any persons desiring to organize a corporation for
drafts in lieu of cash, nor for the failure of the drawee any of the purposes defined in section 25(a) shall
bank or any agent to remit for such checks, nor for the enter into articles of association (see F. R. B. Form 151,
nonpayment of any bank draft accepted in payment which is suggested as a satisfactory form of articles
or as a remittance from the drawee bank or any agent. of association) which shall specify in general terms the
(4) Checks received by a Federal reserve bank on objects for which the Corporation is formed, and may
its member or nonmember clearing banks will ordina- contain any other provisions not inconsistent with law
rily be forwarded or presented direct to such banks, which the Corporation may see fit to adopt for the
and such banks will be required to remit or pay there- regulation of its business and the conduct of its affairs.
for at par in cash or bank draft acceptable to the col- The articles of association shall be signed _ by each
lecting Federal reserve bank, or at the option of such person intending to participate in the organization of
Federal reserve bank to authorize such Federal reserve the Corporation and when signed shall be forwarded
bank to charge their reserve accounts or clearing ac- to the Federal Reserve Board in whose office they shall
counts; provided, however, that any Federal reserve be filed.
bank may reserve the right in its check-collection ciri* For rules for computation of reserves and penalties for deficiencies in
reserves, see Regulation D, Sees. Ill and IV, pp. 69-70.
» Whenever these regulations refer to a corporation spelled with a capi
tal C, they relate to a corporation organized under section 25(a) of the
Federal reserve act.
82
FEDERAL RESERVE BULLETIN
SECTION
III.—Organization certificate
All of the persons signing the articles of association
shall under their hands make an organization certificate
on F. R. B. Form 152, which is made a part of this
regulation, and which shall state specifically:
First. The name assumed by the Corporation.
Second. The place or places where its operations are
to be carried on.
Third. The place in the United States where its
home office is to be located.
Fourth. The amount of its capital stock and the
number of shares into which it shall be divided.
Fifth. The names and places of business or residences of persons executing the organization certificate
and the number of shares to which each has subscribed.
Sixth. The fact that the certificate is made to enable
the persons subscribing the same and all other persons,
firms, companies, and corporations who or which may
thereafter subscribe to or purchase shares of the capital
stock of such Corporation to avail themselves of the
advantages of this section.
The persons signing the organization certificate shall
acknowledge the execution thereof before a judge of
some court of record or notary public who shall certify
thereto under the seal of such court or notary. Thereafter the certificate shall be forwarded to the Federal
Reserve Board to be filed in its office.
SECTION IV.—Title
Inasmuch as the name of the Corporation is subject
to the approval of the Federal Reserve Board, a preliminary application for that approval should be filed
with the Federal Reserve Board on F. R. B. Form 150,
which is made a part of this regulation. * This application should state merely that the organization of a
Corporation under the proposed name is contemplated
and may request the approval of that name and its
reservation for a period of 30 days. No Corporation
which issues its own bonds, debentures, or other
such obligations will be permitted to have the word
"bank" as a part of its title. No Corporation which
has the word "Federal" in its title will be permitted
also to have the word "bank" as a part of its title.
£ o far as possible the title of the Corporation should
>
indicate the nature or reason of the business contemplated and should in no case resemble the name of any
other corporation to the extent that it might result
in misleading or deceiving the public as to its identity,
purpose, connections, or affiliations.
SECTION
V.—Authority to commence business
After the articles of association and organization
certificate have been made and filed with the Federal
Reserve Board, and after they have been approved
by the Federal,, Reserve Board and a preliminary
permit to begin business has been issued by the Federal
Reserve Board, the association shall become and be a
body corporate, but none of its powers except such as
are incidental and preliminary to its organization shall
be exercised until it has been formally authorized by
the Federal Reserve Board by a final permit generally
to commence business.
Before the Federal Reserve Board will issue its final
permit to commence business, the president or cashier,
together with at least three of the directors, must certify (a) that each director elected is a citizen of the
United States; (b) that a majority of the shares of
stock is owned by citizens of the United States, by
corporations the controlling interest in which is owned
JANUARY,
1928
by citizens of the United States, chartered under the
laws of the United States, or by firms or companies
the controlling interest in which is owned by citizens
of the United States; and (c) that of the authorized
capital stock specified in the articles of association at
least 25 per cent has been paid in in cash and that
each shareholder has individually paid in in cash at
least 25 per cent of his stock subscription. Thereafter
the cashier shall certify to the payment of the remaining installments as and when each is paid in, in accordance with law.
SECTION VI.—Capital stock
No Corporation may be organized under the terms
of section 25 (a) with a capital stock of less than
$2,000,000. The par value of each share of stock shall
be specified in the articles of association, and no Corporation will be permitted to issue stock of no par
value. If there is more than one class of stock, the
name and amount of each class and the obligations,
rights, and privileges attaching thereto shall be set
forth fully in the articles of association. Each class of
stock shall be so named as to indicate to the investor
as nearly as possible what is its character and to put
him on notice of any unusual attributes.
SECTION VII.—Transfers of stock
Section 25 (a) provides in part that—
A majority of the shares of the capital stock of any such corporation
shall at all times be held and owned by the citizens of the United States,
by corporations the controlling interest in which is owned by citizens
of the United States, chartered under the laws of the United States or
of a State of the United States, or by firms or companies the controlling
interest in which is owned by citizens of the United States.
In order to insure compliance at all times with the
requirements of this provision after the organization
of the Corporation, shares of stock shall be issuable and
transferable only on the books of the Corporation.
Every application for the issue or transfer of stock
shairbe accompanied by an affidavit of the party to
whom it is desired to issue or transfer stock, or by his
or its duly authorized agent, stating—
In the case of an individual.—(a) Whether he is or
is not a citizen of the United States and, if a citizen
of the United States, whether he is a natural-born citizen or a citizen by naturalization, and if naturalized,
whether he remains for any purpose in the allegiance
of any foreign sovereign or State; (b) whether there is
or is not any arrangement under which he is to hold
the shares or any of the shares which he desires to have
issued or transferred to him, in trust for or in any way
under the control of any foreign State or any foreigner,
foreign corporation, or any corporation under foreign
control; and if so, the nature thereof.
In the case of a corporation.—(a) Whether such corporation is or is not chartered under the laws of the
United States or of a State of the United States. If
it is not, no further declaration is necessary, but if it
is it must also be stated (6) whether the controlling
interest in such corporation is or is not owned by citizens of the United States, and (c) whether there is or
is not any arrangement under which such corporation
will hold the shares or any of the shares if issued or
transferred to such corporation in trust for or in any
way under the control of any foreign State or any foreigner, or foreign corporation, or any corporation under
foreign control; and if so, the nature thereof.
In the case of a firm or company.—(a) Whether the
controlling interest in such firm or company is or is
not owned by citizens of the United States; and, if so,
(6) whether there is or is not any arrangement under
which such firm or company will hold the shares or
JANUARY, 1928
FEDERAL RESERVE BULLETIN
any of the shares if issued or transferred to such firm
or company in trust for or in any way under the control
of any foreign State or any foreigner, or foreign corporation, or any corporation under foreign control; and
if so, the nature thereof.
The board of directors of the Corporation, whether
acting directly or through an agent, may, before making any issue or transfer of stock, require such further
evidence as in their discretion they may think necessary in order to determine whether or not the issue or
transfer of the stock would result in a violation of the
law. No issue or transfer of stock which would cause
50 per cent or more of the total amount of stock issued
or outstanding to be held contrary to the provisions of
the law or these regulations shall be made upon the
books of the Corporation. The decision of the board
of directors in each case shall be final and conclusive
and not subject to any question by any person, firm,
or corporation on any ground whatsoever.
If at any time by reason of the fact that the holder
of any shares of the Corporation ceases to be a citizen
of the United States, or, in the opinion of the board of
directors, becomes subject to the control of any foreign
State or foreigner or foreign corporation or corporation
under foreign control, 50 per cent or more of the total
amount of capital stock issued or outstanding is held
contrary to the provisions of the law or these regulations,
the board of directors may, when apprised of that fact,
forthwith serve on the holder of the shares in question
a notice in writing requiring such holder within two
months to transfer such shares to a citizen of the
United States, or to a firm, company, or corporation
approved by the board of directors as an eligible stockholder. When such notice has been given by the board
of directors the shares of stock so held shall cease to
confer any vote until they have been transferred as
required above and if on the expiration of two months
after such notice the shares shall not have been so
transferred, the shares shall be forfeited to the Corporation.
The board of directors shall prescribe in the by-laws
of the Corporation appropriate regulations for the
registration of the shares of stock in accordance with
the terms of the law and these regulations. The bylaws must also provide that the certificates of stock
issued by the Corporation shall contain provisions
sufficient to put the holder on notice of the terms of the
law and the regulations of the Federal Reserve Board
defining the limitations upon the rights of transfer.
83
(6) Under the laws of any foreign country or a colony
or dependency thereof;
(c) Under the laws of any State, dependency, or
insular possession of the United States;
Provided, first. That such other corporation is not
engaged in the general business of buying or selling
goods, wares, merchandise, or commodities in the
United States; and second, that it is not transacting
any business in the United States except such as^is
incidental to its international or foreign business.
Except with the approval of the Federal Reserve
Board, no Corporation shall invest an amount in excess
of 15 per cent of its capital and surplus in the stock
of any corporation engaged in the business of banking,
or an amount in excess of 10 per cent of its capital and
surplus in the stock of any other kind of corporation.
No Corporation shall purchase any stock in any
other corporation organized under the terms of section
25 (a) or under the laws of any State, which is in substantial competition therewith, or which holds stock
or certificates of ownership in corporations which are
in substantial competition with the purchasing Corporation. This restriction, however, does not apply
to corporations organized under foreign laws.
SECTION X.—Branches
No Corporation shall establish any branches except
with the approval of the Federal Reserve Board, and
in no case shall any branch be established in the United
States.
SECTION XI.—Issue of debentures, bonds, and promissory
notes
A Corporation is not required by law or by this regulation to make application to or obtain the approval
of the Federal Reserve Board before making an issue
of its debentures, bonds, notes, or other obligations,
but Corporations issuing their debentures, bonds, notes,
or other obligations must comply with the rules, regulations, and conditions hereinafter set forth.
(a) General conditions.—All debentures, bonds,
notes, or other such obligations issued by a Corporation (except notes payable to banks or bankers within
one year) shall—
(1) Be payable only in gold coin of the United States
of the standard of weight and fineness existing at the
time of issue;
(2) Be payable not more than 20 years after the date
SECTION VIII.—Operations in the United States
of issue;
(3) Be secured by collateral which shall—
No Corporation shall carry on any part of its business
(i) Consist of lawful money of the United States and/
in the United States except such as shall be incidental
to its international or foreign business. Agencies may or securities, notes, drafts, bills of exchange, acceptbe established in the United States with the approval ances, including bankers' acceptances, and other
of the Federal Reserve Board for specific purposes, evidences of indebtedness and/or shares of stock in
but not generally to carry on the business of the which the Corporation is authorized by law to invest
its funds;
Corporation.
(ii) Have an aggregate market value equal at all
SECTION IX.—Investments in the stock of other corpora-times to not less than 110 per cent of the aggregate
principal amount of the obligations issued or to be issued
tions
against such securities; and
(in) Be transferred and delivered free of any prior
It is contemplated by the law that a Corporation
shall conduct its business abroad either directly or in- lien, charge, or encumbrance thereon of any kind whatdirectly through the ownership or control of corpora- soever, to a financially responsible bank or trust comtions, and accordingly the Federal Reserve Board pany, which is a member of the Federal reserve system,
hereby consents that a Corporation may invest in the as trustee under a trust indenture executed by the
stock, or certificates of ownership, of any other cor- Corporation as security for the obligations of the Corporation issued or to be issued thereunder, which trust
poration organized—
(a) Under the provisions of section 25 (a) of the indenture shall prescribe the general form of such obligations and shall require that every such obligation
Federal reserve act;
84
FEDERAL RESERVE BULLETIN
shall be authenticated by the certificate of the trustee
noted thereon.
(b) Requirements after issuance.—Within 10 days
after the issuance of any such debentures, bonds, notes,
or other obligations (other than promissory notes payable t o banks or bankers within one year) t h e Corporation issuing the same shall file with the Federal Reserve
Board—
(1) A statement verified by the affidavit of its president or a vice president and its treasurer, cashier, or
comptroller setting forth—
(1) That the requirements of this regulation in
respect of the issue of debentures, bonds, notes, or
other obligations have been complied with in all
respects;
(ii) The aggregate amount of the debentures, bonds,
notes, or obligations issued under the trust indenture
and the net price received by the Corporation therefor;
(iii) The various items of the collateral security
pledged under the trust indenture and the market
value, at the time of the issue of such obligations, of
each and every item thereof; and
(iv) The financial condition of the Corporation and,
in detail, all its assets and liabilities (fixed and contingent) as of the day immediately following such issue.
(2) A copy of the trust indenture pursuant to which
such obligations of t h e Corporation were issued, certified as correct by the trustee therein named.
(3) A certificate of the trustee under such trust
indenture setting forth—
(i) That it has accepted the trust created by such
trust indenture and is acting as trustee thereunder;
(ii) The securities and/or cash which have been
delivered to it and which it holds as trustee under the
trust indenture; and
(iii) The name and address of the counsel for the
trustee.
(4) The latest published balance sheet of the Corporation, certified as correct by the president or a vice
president and by t h e treasurer, an assistant treasurer,
the cashier or assistant cashier or the comptroller of
the Corporation.
(5) An opinion of the counsel for the trustee under
the trust indenture to the effect that—
(i) The trust indenture has been validly executed
in pursuance of due corporate action;
(ii) That all necessary legal formalities have been
•complied with to make such obligations, when executed
by the Corporation and authenticated by the trustee,
valid and enforcible obligations of the Corporation
entitled to the benefits afforded by the trust indenture;
and
(iii) That the transfers executed to the trustee of
the collateral security held by it under the trust indenture are in appropriate and sufficient form.
(6) Copies of all prospectuses and other literature
issued fc>y the Corporation or its officers or bankers
describing or affecting such issue.
In case there shall be any substitution of or change in
the securities a t any time held under any such trust
indenture securing an issue of debentures, bonds,
notes, or other obligations the Corporation, each time
it makes a report to the Federal Reserve Board pursuant to the provisions of Section XVI, shall file with
the Federal Reserve Board a statement, verified by
the affidavit of the president or a vice president and
the treasurer, cashier, or comptroller of the Corporation—
(1) Giving -the details of such substitution or
change; and
(2) Certifying t h a t such substitution or change has
not resulted in a reduction of the aggregate market
JANUARY, 1928
value of the collateral to an amount below 110 per cent
of the aggregate principal amount of the obligations
issued or to be issued against such securities.
Such statement shall be accompanied by an acknowledgment by the trustee under the trust indenture
that there has been delivered to it and t h a t it holds
as such trustee the additional collateral specified in
such statement.
The Federal Reserve Board reserves the right to
make public whenever it believes it to be necessary in
the public interest any documents filed with it under
this subsection.
(c) Advertisements.—No circular, prospectus, letter,
advertisement, or other statement published or issued
in any form or manner by a Corporation shall contain
any matter to indicate that any issue of debentures,
bonds, notes, or other obligations by such Corporation
or the collateral securing same has in any way received
the approval of the Federal Reserve Board or that the
collatera securing same has been appraised or approved
in any way by the Federal Reserve Board. This
requirement will be strictly enforced in order that there
may be no possibility of the public obtaining t h e
impression that the Federal Reserve Board has a p proved in any way any such issue of debentures,
bonds, notes, or other such obligations or the collateral
securing same.
SECTION XII.—Sale
of securities with guaranty or
indorsement
Whenever a Corporation sells, discounts, or negotiates with its indorsement or guaranty any securities,
notes, drafts, bills of exchange, acceptances, bankers'
acceptances, or other evidence of indebtedness, it shall
enter on its books a proper record thereof, describing
in detail each such evidence of indebtedness so sold,
discounted, or negotiated, the amount thereof, the
parties thereto, the maturity thereof, and the nature
of the Corporation's liability thereon. Every financial
statement of the Corporation submitted to the Federal
Reserve Board or made public in any way shall show
the aggregate amount of all such liabilities outstanding
as of the date on which such statement purports to
show the financial condition of the Corporation.
SECTION XIII.—Acceptances
Kinds.—Any corporation may accept (1) drafts and
bills of exchange drawn upon it which grow out of
transactions involving the importation or exportation
of goods, and (2) drafts and bills of exchange which are
drawn by banks or bankers located in foreign countries
or dependencies or insular possessions of the United
States for the purpose of furnishing dollar exchange as
required by the usages of trade in such countries,
dependencies, and possessions, provided, however,
that no Corporation shall exercise its power to accept
drafts or bills of exchange if at the time such drafts or
bills are presented for acceptance it has outstanding
any debentures, bonds, notes, or other such obligations
issued by it.
Maturity.—No Corporation shall accept any draft or
bill of exchange which grows out of a transaction
involving the importation or exportation of goods with
a maturity in excess of six months, or shall accept any
draft or bill of exchange drawn for the purpose of
furnishing dollar exchange with a maturity in excess
of three months.
Limitations.—(1) Individual drawers: No acceptances
shall be made for the account of any one drawer in an
amount aggregating at any time in excess of 10 per
FEDERAL RESERVE BULLETIN
JANUARY, 1928
cent of the subscribed capital and surplus of the Corporation, unless the transaction be fully secured or
represents an exportation or imporation of commodities
and is guaranteed by a bank or banker of undoubted
solvency. (2) Aggregates: Whenever the aggregate
of acceptances outstanding at any time (a) exceeds the
amount of the subscribed capital and surplus, 50 per
cent of all the acceptances in excess of the amount shall
be fully secured; or (b) exceeds twice the amount of the
subscribed capital and surplus, all the acceptances
outstanding in excess of such amount shall be fully
secured. (The Corporation shall elect whichever
requirement (a) or (b) calls for the smaller amount of
secured acceptances.) In no event shall any Corporation have outstanding at any one time acceptances
drawn for the purpose of furnishing dollar exchange in
an amount aggregating more than 50 per cent of its
subscribed capital and surplus.
Reserves.—Against all acceptances outstanding
which mature in 30 days or less a reserve of at least 15
per cent shall be maintained, and against all acceptances outstanding which mature in more than 30 days
a reserve of at least 3 per cent shall be maintained.
Reserves against acceptances must be in liquid assets
of any or all of the following kinds: (1) Cash; (2)
balances with other banks; (3) acceptances of other
banks or bankers; and (4) obligations of the Government of the United States.
SECTION
XIV.—Deposits
85
the discount of commercial or business paper actually
owned by the person negotiating the same, and the
purchase of readily marketable bonds, notes, and
other investment securities offered for sale in the open
market, shall not be considered as money borrowed
within the meaning of this paragraph. The liability
of a customer on account of an acceptance made by
the Corporation for his account is not a liability for
money borrowed within the meaning of this paragraph
unless and until he fails to place the Corporation in
funds to cover the payment of the acceptance at
maturity or unless the Corporation itself holds the
acceptance.
Aggregate liabilities of the Corporation.—The aggregate of the Corporation's liabilities outstanding on
account of acceptances, average domestic and foreign
deposits, debentures, bonds, notes, guaranties, indorsements, and other such obligations shall not exceed
at any one time ten times the amount of the Corporation's subscribed capital and surplus. In determining
the amount of the liabilities within the meaning of thisparagraph, indorsements of bills of exchange having
not more than six months to run, drawn and accepted
by others than the Corporation, shall not be included.
Operations abroad.—Except as otherwise provided
in the law and these regulations, a Corporation may
exercise abroad not only the powers specifically set
forth in the law but also such incidental powers as
may be usual in the determination of the Federal
Reserve Board in connection with the transaction of
the business of banking or other financial operations in
the countries in which it shall transact business. In
the exercise of any of these powers abroad a Corporation must be guided by the laws of the country in
which it is operating and by sound business judgment
and banking principles.
In the United States.—No Corporation shall receive
in the United States any deposits except such as are
incidental to or for the purpose of carrying out transactions in foreign countries or dependencies of the
United States where the Corporation has established
agencies, branches, correspondents, or where it operates
SECTION XVI.—Reports and examinations
through the ownership or control of subsidiary corporations. Deposits of this character may be made by
Reports.—Each Corporation shall make at least twoindividuals, firms, banks, or other corporations,
whether foreign or domestic, and may be time deposits reports annually to the Federal Reserve Board at such
times and in such form as it may require.
or on demand.
Examinations.—Each Corporation shall be examined
Outside the United States.—Outside the United
States a Corporation may receive deposits of any kind at least once a year by examiners appointed by the
from individuals, firms, banks, or other corporations: Federal Reserve" Board. The cost of examinations
shall
Provided, however, That if such Corporation has any be paid by the Corporation examined.
of its bonds, debentures, or other such obligations
SECTION XVII.—Amendments to regulations
outstanding it may receive abroad only such deposits
as are incidental to the conduct of its exchange, disThese regulations are subject to amendment by the
count, or loan operations.
Reserves.—Against all deposits received in the Federal Reserve Board from time to time: Provided,
however, That no such amendment shall prejudice
United States a reserve of not less than 13 per cent
must be maintained. This reserve may consist of obligations undertaken in good faith under regulationscash in vault, a balance with the Federal reserve bank in effect at the time they were assumed.
of the district in which the head office of the Corporation is located, or a balance with any member bank.
Against all deposits received abroad the Corporation
REGULATION L, SERIES OF 1928
shall maintain such reserves as may be required by
local laws and by the dictates of sound business judg(Superseding Regulation L of 1924)
ment and banking principles.
SECTION
XV.—General limitations and restrictions
INTERLOCKING BANK DIRECTORATES UNDER THE
CLAYTON ACT
SECTION I.—Definitions
Liabilities of one borrower.—The total liabilities to
a Corporation of any person, company, firm, or corWithin the meaning of this regulation—
poration for money borrowed, including in the liabilities
The term "member bank" shall apply to any naof a company or firm the liabilities of the several
members thereof, shall at no time exceed 10 per cent tional bank and any State bank or trust company
of the amount of its subscribed capital and surplus: which is a member of the Federal reserve system.
Provided, however, That the discount of bills of exchange The term "national bank" shall be construed todrawn in good faith against actually existing values, apply not only to national banking associations but
86
FEDERAL RESERVE BULLETIN
also to banks, banking associations, and trust companies organized or operating under the laws of the
United States, including all banks and trust companies
doing business in the District of Columbia, regardless
of the sources of their charters.
The term " resources " shall be construed to pean an
amount equal to the sum of the deposits, capital, surplus, and undivided profits.
The term "State bank" shall include any bank,
banking association, or trust company incorporated
under State law.
The term "private banker" shall apply to any unincorporated individual engaging in one or more phases
of the banking business as that term is generally understood and to any member of an unincorporated firm
engaging in such business.
The term "Edge Act" shall mean section 25(a) of the
Federal reserve act, as amended December 24, 1919.
The term "Edge corporation" shall mean any corporation organized under the provisions of the Edge
Act.
The term "city of over 200,000 inhabitants" includes
any city, incorporated town, or village of more than
200,000 inhabitants, as shown by the last preceding
decennial census of the United States. Any bank
located anywhere within the corporate limits of such
city is located in a city of over 200,000 inhabitants
within the meaning of the Clayton Act, even though
it is located in a suburb or an outlying district at some
distance from the principal part of the city.
[SECTION II.—Prohibitions of Clayton Act
Under section 8 of the Clayton Antitrust Act—
(1) No person who is a director or other officer or
employee of a national bank having resources aggregating more than $5,000,000 can legally serve at the
same time as director, officer, or employee of any
other national bank, regardless of its location.
(2) No person who is a director in a State bank or
trust company having resources aggregating more
than $5,000,000 or who is a private banker having
resources aggregating more than $5,000,000 can legally
serve at the same time as director of any national
bank, regardless of its location.
(3) No person can legally be a director, officer, or
-employee of a national bank located in a city of more
than 200,000 inhabitants who is at the same time a
private banker in the same city or a director, officer,
or employee of any other bank (State or National)
located in the same city, regardless of the size of such
bank.
The eligibility of a director, officer, or employee
under the foregoing provisions is determined by the
average amount of deposits, capital, surplus," and
undivided profits as shown in the official statements of
such bank, banking association, or trust company filed
as provided by law during the fiscal year next preceding
the date set for the annual election of directors, and
when a director, officer, or employee has been elected or
selected in accordance with the provisions of the Clayton
Act it is lawful for him to continue as such for one year
thereafter under said election or employment.
When any person elected or chosen as a director,
officer, or employee of any bank is eligible at the time
of his election or selection to act for such bank in such
-capacity his eligibility to act in such capacity is not
affected by reason of any change in the affairs of such
bank from whatsoever cause until the expiration of
one year from the date of his election or employment.
JANUARY, 1928
SECTION III.—Exceptions
The provisions of section 8 of the Clayton Act—
(1) Do not apply to mutual savings banks not having a capital stock represented by shares.
(2) Do not prohibit a person from being at the same
time a director, officer, or employee of a national bank
and not more than one other national bank, State
bank, or trust company, where the entire capital
stock of one is owned by the stockholders of the other.
(3) Do not prohibit a person from being at the same
time a class A director of a Federal reserve bank and
also an officer or director, or both an officer and a director, in one member bank.
(4) Do not prohibit a person who is serving as
director, officer, or employee of a national bank, even
though it has resources aggregating over $5,000,000,
from serving at the same time as director, officer, or
employee of any number of State banks and trust companies, provided such State institutions are not located
in the same city of over 200,000 inhabitants as the
national bank and do not have resources aggregating
in the case of any one bank more than $5,000,000.
(5) Do not prohibit a person from serving at the
same time as director, officer, or employee of any number of national banks, provided no two of them are
located in the same city of over 200,000 inhabitants
and no one of them has resources aggregating over
$5,000,000.
(6) Do not prohibit a person who is not a director,
officer, or employee of any national bank from serving
at the same time as officer, director, or employee of any
number of State banks or trust companies, regardless
of their locations and resources.
(7) Do not prohibit a person who is an officer or
employee but not a director of a State bank from serving as director, officer, or employee of a national bank,
even though either or both of such banks have resources
aggregating over $5,000,000, provided both banks are
not located in the same city of over 200,000 inhabitants.
(8) Do not prohibit a person who is an officer or
employee but not a director of a national bank from
serving at the same time as director, officer, or employee of a State bank, even though either or both of
such banks have resources aggregating over $5,000,000,
provided both banks are not located in the same city
of over 200,000 inhabitants.
(9) Do not apply to persons who have obtained the
consent or approval of the Federal Reserve Board
under the provisions of the Kern amendment, section
25 of the Federal reserve act, or the Edge Act, as
hereinafter provided.
Exceptions cumulative.—The above exceptions are
cumulative.
SECTION IV.—Permission oj the Federal Reserve Board
under Kern amendment
By the Kern amendment, approved May 15, 1916,
as amended May 26, 1920, the Clayton Act was
amended so as to authorize the Federal Reserve Board
to permit any private banker or any officer, director,
or employee of any member bank or class A director
of a Federal reserve bank to serve as director, officer,
or employee of not more than two other banks, banking
associations, or trust companies coming within the prohibitions of the Clayton Act, provided such other banks
are not in substantial competition with such private
banker or member bank.
JANUABY,
1928
FEDERAL RESERVE BULLETIN
Substantial competition.—If the institutions involved
are not in substantial competition, the board is authorized, in its discretion, to grant, withhold, or revoke such
consent; but if they are in substantial competition, the
board has no discretion in the matter and must refuse
such consent.
The board has adopted the following statement of
general principles for its guidance in determining
whether banks are in substantial competition within
the meaning of the Kern amendment to the Clayton
Act:
In genera], two banks will be deemed to be in substantial competition
if they actually compete for a considerable amount of business, i. e., if
a considerable portion of the business of each is of the same character and
in doing or seeking such business they actually compete for the same
customers or prospective customers, regardless of whether or not it is
probable or possible that an interlocking directorate between them would
result in injury to the public by making credit less available. If the
statements of two banks show that each has a considerable amount of
the same class of deposits or loans and it appears from the evidence submitted that they are so located as to be in a position to serve the same
customers conveniently, the board will presume, in the absence of
evidence to the contrary, that they are in substantial competition.
This presumption may be rebutted, however, by any evidence showing
that they are not actually competing for such business, e. g., that they
actually serve different classes of customers, that the business in question
is not actually sought by one bank but is merely incidental to its other
business, or that competition has already been eliminated through
common stock ownership. The existence of substantial competition,
however, may be shown by evidence other than that described above.
This is not intended as a precise definition of the
term " substantial competition/' but merely as a broad
statement of the general principles which will be
observed by the Federal Reserve Board in determining whether banks are in substantial competition.
Whether or not substantial competition exists in any
particular case is a question of fact which must be
determined in the light of all the facts and circumstances involved in such case.
Burden of proof.—Inasmuch as the Federal Reserve
Board has no power to permit a person to serve two or
more banks coming within the prohibitions of the
Clayton Act unless the institutions involved are not in
substantial competition, the applicant for such permission has the burden of proving to the board that
such institutions are not in substantial competition.
When obtained.—Inasmuch as the Kern amendment
excepts from the prohibitions of the Clayton Act only
those "who shall first procure the consent of the
Federal Reserve Board," it is a violation of the law to
serve two or more institutions in the prohibited classes
before such consent has been obtained. Such consent
should be obtained, therefore, before becoming an officer,
director, or employee of more than one bank in the
prohibited classes. Such consent may be procured
before the person applying therefor has been elected as
a class A director of a Federal reserve bank or as a
director of any member bank.
Applications for permission.—A person wishing to
obtain the permission of the Federal Reserve Board to
serve banks coming within the prohibitions of the
Clayton Act should—
(1) Make formal application on F. R. B. Form 94,
or, if a private banker, on F. R. B. Form 94d. Each
of these forms is made a part of this regulation.
(2) Obtain from each of the banks involved a statement on F. R. B. Form 94a, which is made a part of
this regulation, showing the character of its business,
together with a copy of its last published statement of
condition, and, if a private banker, make a statement
87
on F. R. B. Form 94e showing the character of his
or his firm's business.
(3) Forward all these papers to the Federal reserve
agent of his district, who will attach his recommendation on F. R. B. Form 94b, which is made a part of
this regulation, and forward them in due course to the
Federal Reserve Board.
Approval or disapproval.—As soon as an application is acted upon by the board, the applicant will be
advised of the action taken.
If the board approves the application, a formal
certificate of permission to serve on the banks involved
will be issued to the applicant.
Rehearing.—If the board decides that the banks are
in substantial competition and that it can not approve
the application, it will, upon petition of the applicant,
reconsider its decision and afford him every opportunity to present any additional facts or arguments
bearing on the subject.
Effect of permits.—Permission once granted is continuing until revoked, and need not be renewed.
Revocation.—All permits, however, are subject to
revocation at any time in the discretion of the Federal
Reserve Board. The issuance of a permit to any person shall have the effect of revoking any or all permits
which may have been issued previously to that person.
SECTION V.—Permits under section 25 of the Federal
reserve act
With the approval of the Federal Reserve Board,
any director, officer, or employee of a member bank
which has invested in the stock of any corporation
principally engaged in international or foreign banking
or financial operations or banking in a dependency or
insular possession of the United States, under the provisions of section 25 of the Federal reserve act, may
serve as director, officer, or employee of any such foreign bank or financial corporation.
Applications for approval.—The approval of the
Federal Reserve Board for such interlocking directorates may be obtained through an informal application
in the form of a letter addressed to the Federal Reserve
Board either by the officer, director, or employee
involved, or in his behalf by one of the banks which
he is serving. Such application should be sent directly
to the Federal Reserve Board.
SECTION VI.—Permits to serve Edge corporations
With the approval of the Federal Reserve Board—
(1) Any officer, director, or employee of any member
bank may serve at the same time as director, officer,
or employee of any Edge corporation in whose capital
stock the member bank shall have invested.
(2) Any officer, director, or employee of any Edge
corporation may serve at the same time as officer,
director, or employee of any other corporation in whose
capital stock such^Edge corporation shall have invested
under the provisions of the Edge Act.
Applications for approval.—Such approval may be
obtained through an informal application in the form
of a letter addressed to the Federal Reserve Board
either by the director, officer, or employee involved,
or in his behalf by one of the banks or corporations
involved. Such applications should be sent directly
to the Federal Reserve Board.
88
FEDERAL RESERVE BULLETIN
JANUABT, 1928
Changes in State Bank Membership
The following list shows the changes affecting State
bank membership during the month ended December
21, 1927, on which date 1,284 State institutions were
members of the system:
ADMISSIONS
Total resources
Boston, Mass
Commercial S e c u r i t y
National Bank.
National Grand Bank..
Liberty National Bank.
Irvington NationalBank.
Mount Prospect National Bank.
Cayuga County National Bank.
National Bank of
National Bank of Niagara and Trust Co.
Wheatley Hills National Bank.
Lewisburg N a t i o n a l
Bank.
National Bank of
Swarthmore National
Bank.
Drovers & Mechanics
National Bank.
First National Bank....
First National Bank....
Merchants N a t i o n a l
Bank and Trust Com- j
Marblehead, M a s s . . .
Ellsworth, Me
Irvington, N. J
Newark, N. J Auburn, N. Y
Cortland, N. Y
Niagara Falls, N. Y_.
District No. 2
Westbury, N. Y
People's Trust Co., Dunellen, N. J
$100,000
50,000
Cohocton State Bank, Cohocton, N. Y_.
District No. 10
Fidelity Savings State Bank, Topeka,
Kans
First Security Bank, Rock Springs,
Wyo
200,000
100,000
$50,000
25,000
$150,000
613,999
40,000
1,637,273
100,000 2,576,334
Lewisburg, Pa
Shamokin, Pa
Swarthmore, Pa
York, Pa
Pikeville, Ky
Bellaire, Ohio
Dayton, Ohio
Pittsburgh, Pa_.
District No. 6
Engineers Bank & Trust Co., Birmingham, Ala. (title changed to Southern
Bank& Trust Co.).
Bank of Locust Grove, Locust Grove,
Ga. (voluntary withdrawal)
Pittsburgh, P a . . .
Dothan, Ala
Mobile, Ala
Vicksburg, Miss..
$25,000
$12,000 | $138,000
50,000
33,000 ! 290,000
District No. 8
Planters Bank & Trust Co., Ruleville,
Miss, (voluntary withdrawal)
Bank of Boulder, Boulder, Mont,
(voluntary withdrawal)
25,000
Orange, Calif..
15,000
District No. 11
A very State Bank, A very, Tex.
(insolvent)
First Guaranty State Bank, Tioga, Tex.
(succeeded by nonmember)
First State Bank, Richland, Tex. (absorbed by First National Bank of
Richland). __
First State Bank, Denton, Tex. (succeeded by nonmember)
Winchester, Tenn
Chicago, 111
Paris, 111
Greenwood, Miss
Springfield, Mo
Golden, Colo.
Waco, Tex
District No. 9
Ito9.
Ito9.
Ito9.
Ito9.
Ito9.
Ito9.
9.1
Ito9.
Ito9.
Ito9.
Ito9.
Ito9.
Ito8.
3 and 5.1
2, 3, 5 to 8.1
First National Bank and ! 2, 3, 5 to 7.i
Trust Co.
Exchange N a t i o n a l 1 to 9.
Bank.
j
Forbes National Bank.. 1 Ito9.
Houston National Bank.; 2 to 9.1
First National Bank
i 9.1
Merchants N a t i o n a l 1 to 9.
Bank.
(1
Farmers National Bank. \5 to 3.
to 9.
National Builders Bank. . I t o 9 .
First National Bank.... .! 1 to 9.
First National Bank.... .1 2, 3, 5 to 8.*
McDaniel N a t i o n a l I 1 to 9.
Bank.
Rubey National Bank.. .! I t o 9 .
Citizens N a t i o n a l | 1 to 9.
Hamilton, Ohio.
CHANGES
Powers
granted
Name of bank
12
Bank.
First National Bank.... J Ito9.
i Supplemental.
25,000
15,000
115,000
30,000
11,000
114,00
25,000
25,000
324,000
50,000
4,000
Changes in National Bank Membership
504,000
The Comptroller of the Currency reports the following increases and reductions in the number and capital
of national banks during the period from November 19
to December 23, 1927, inclusive:
Number of
banks
Fiduciary Powers Granted to National Banks
During the month ended December 21, 1927, the
Federal Reserve Board approved applications of the
national banks listed below for permission to exercise
one or more of thefiduciarypowers named in section 11
(k) of the Federal reserve act as amended, as follows:
(1) Trustee; (2) executor; (3) administrator; (4)
registrar of stocks and bonds; (5) guardian of estates;
(6) assignee; (7) receiver; (8) committee of estates of
lunatics; (9) in any other fiduciary capacity in which
State banks, trust companies, or other corporations
which come into competition with national banks are
permitted to act under the laws of the State in which
the national bank is located.
Amount
of
capital
New charters issued
Restored to solvency
Increase of capital approved1
Aggregate of new charters, banks restored to
solvency, and banks increasing capital
31 13,695,000
Liquidations
Reducing capital2
19 2,035,000
100,000
1
_.
_„
Total liquidations and reductions of capital...
Consolidation of national banks under act of Nov.
7,1918
.
Consolidation of a national bank and a State bank
under act of Feb. 25,1927
Total consolidations
Aggregate increased capital for period
Reduction of capital owing to liquidations, etc
Net increase
13 $1,695,000
0 i
0
18 112,000,000
i
2,135,000
20
1 \
100,000
2 35,100,000
3 135,200,000
|13,695,000
| 2,135,000
11,560,000
1 Includes two increases in capital aggregating $10,050,000 incident to
consolidations of State banks under act of Feb. 25, 1927.
2
Incident to a consolidation under act of Nov. 7, 1918.
JANUARY,
89
FEDERAL RESERVE BULLETIN
1928
DETAILED BANKING STATISTICS FOR THE UNITED STATES
FEDERAL RESERVE BANKS
RESOURCES AND LIABILITIES, BY WEEKS
[In thousands of dollars]
RESOURCES
Federal Reserve Bank
Total
Richmond
Atlanta
Boston
Gold with Federal reserve
agents:
Dec. 7
Dec. 14
Dec. 21
Dec. 28
Gold redemption fund with
United States Treasury:
Dec. 7
Dec. 14
Dec. 21
Dec. 28
Gold held exclusively against
Federal reserve notes:
Dec. 7
Dec. 14
Dec. 21
Dec. 28
Gold settlement; fund v with
Federal Reserve Board:
Dec. 7
Dec. 14
Dec. 21
Dec. 28
Gold and gold certificatesjield
by banks:
Dec. 7
Dec. 14
Dec. 21
_
Dec. 28
Total gold reserves:
Dec. 7
Dec. 14
Dec. 21
Dec. 28
Reserves other than gold:
Dec. 7
Dec. 14
Dec. 21
Dec. 28
New
York
Phila- Clevedelphia land
108,969
107,475
114,906
128,096
300,068
340,067
285, 067
225,067
117,305
121,677
113,117
109,211
202,372
204,036
192,892
179,339
34,925
34,151
33,107
32,318
141,312
141,570
141.134
144,817
3,972
4,674
6,634
7,841
12, 354
15, 502
14,183
17,941
8,042
9, 594
6,847
3,402
2,420
4,749
4,222
3,239
3,276
3,423
3,505
2,159
1,848
2,127
1,646
1, 576,857^
1,632,961
1,559,023
1,523,936
112,941
112,149
121, 540
135,937
312,422
355, 569
299, 250
243,008
125, 347
131, 271
119, 964
114,170
586,044
487, 463
554, 358
595,110
35,925
25, 642
27, 712
11,163
191,978
155, 545
238,205
225,513
38,509!
31,773j
25,017'
28,305'
50,446
48,138
24,800
53,875
34,179
671,778 I 33,023
628,942 31,873
620,054 36,288
431,088
436, 433
408,892
393,607
24,825j
25,695!
23,8511
24,240!
39,589
39,037
37,548
36,800
188,6811
947, 547 188, 739;
946,347 168,832^
862,128 166,715;
295,809
293,631
259,989
274,236
1,530,667;!
l,585,009;|
1,505,098:
1,469,255:
46,190
47,952
53,925
54,681
2,826,7351 183,045
2,792.202) 170,814
2,742,3231 181,125
2,739,100 183,388
126, 540
125, 764
115, 219
123,096
13,098
12,860
12, 568
12,499
Total reserves:
2,953,275 196,143
Dec. 7
2,917,966 183,674
Dec. 14
2,857,542 193,693
Dec. 21
2,862,196 195,887
Dec. 28
Nonreserve cash:
6,665
53,728
Dec. 7
7,262
56,310
Dec. 14
55,211
7,949
Dec. 21
69,647
8,071
Dec. 28
Bills discounted:
Secured by U. S. Govern*
ment obligations—
294,613 26,652
Dec. 7
347,586 26,898
Dec. 14
390,830 19,948
Dec. 21
410,174 21,361
Dec. 28
Other bills discounted—
9,506
149,294
Dec. 7
147,387 19,826
Dec. 14
187,326 21,083
Dec. 21
199,035 19,602
Dec. 28
Total bills discounted:
Dec. 7 . —
Dec. 14
Dec. 21
D«c.28
443,9071
494,973
578,156!
600,20911
36,158
46,724
41,031
40,963
23, 658
23, 220
19,866
22,191
Chicago
St.
Louis
Minne Kansas Dallas
apolis City
San
Francisco
257,767 45,476
257,767 47,267
247,767 39,365
247,767 41,896
47,995
45,395
47,031
48,729
53, 445
57,052
58,140
59,246
30,014
30, 324
33, 544
34,569
191,019
198, 228
199,028
218,200
2,803
1,726
5,614
4,582
2,127
1,674
1,901
1,673
2,152
1,872
1,997
2,532
2,007
1,563
2,136
1,633
1,572
2,131
1,436
2,339
1,787
2,756
2,208
205,774 38,164 143,471 260, 570
206,456 37,427 143,418 259, 493
197,641 36, 530 143, 261 253, 381
183,561 35,823 146,463 252,349
47, 603
48,941
41,266
43,569
50,147
47,2«7|
49, 028
51,261j
55,413
50, 059
59, 703
61,382
31, 647
31, 896
35, 675
36,005
193,358
200,015
201, 784
220,408
90, 079
71, 828
97,850
118,007
26,455
19,192
19, 354
23,207
16, 9531
18, 393
14,416
18,186
31, 774
27, 339
25,819
28,657
19, 723]
15,939
14,831!
16,623|
46,770
43,351
38,696
41,176
55,153
56, 248
50, 608
52,640
11,120
12, 015
10, 780
10,655
6,498
6,176
6,104
4,788
6,414
7, 203
6.422
6,334
7,372!
7, 397i
7,319
7,279
31.507
3i; 707
30,583
30,744
158, 276 405, 802
73,160 154, 852 387, 569
65,188 157, 223 401,839
65,582 163,801 422,996
85,178
80,148
71, 400
77,431
73,598
71, 836
69, 548
74,235
93, 601
93, 601
91, 944
96,373
58, 742
55,232
57,825
59,907
271, 635
275, 073
271, 063
292,328
6, 554J 9, 264
5, 7721 9,152
5, 284! 8,927
5,799; 10,666
30, 722 6,710
27,168 3,155
20, 691 6,967
20,353 10,045
7,994
8,565
7,967
9,386
8,095
8, 279
6, 995
7,293
4,887
5,426
5,140
6,359
13, 420
14,357
13,128
11,376
15, 703
15,344
13, 773
15,555
12, 568
12, 781
11, 538
12,680
4,225
4, 330
3, 803
3,750|
5,674
5, 688
5, 750
5,444
9,563
9,420
8,809
8,922
7,926
7,414
7,855
959,146
970, 767
966,213
884,319
195,235!
194,51l|
174,116
172,514
305,073
302,783
268,916
284,902
81,767
78,586
70,328
71,921
171,696
169,209
170,351
175,177
421,505
402,913
415,612
438,551
97,746j
92,929|
82,938 i
90,111|
77,823
76,166
73,351
77,985
99,275
99,289
97,694
101,817
68,305
64,652
66,634
68,829
279,561
282,487
277,696
300,183
16,586
16,509
16,609
21,009
819
997
952
1,293
2,926
4,043
3,499
4,911
4,592
4,461
4,415
6,176
3,913
3,640
3,525
4,522
5,466
6,308
5,833
7,861
3,4701
3,686
3,433!
4,303|
725
1,031
1,103
1,226
2,345
2,193
2,040
2,827
2,066
2,343
2,007
2,770
4,155
3,837
3,846
4,678
I
i
89, 769
100,046
141,827
197,994
22,456
27,967
35,441
43,325
31,500
43,869
57,397
58,145
7,099
6,722
8,879
9,022
11,310
11, 781
13,317
9,482
45,033
68,452
49,694
37,909
7,6931
9,822
17,537
12,476
718
1,473
1,586
484
6,705
7,737
8, 558
9,230
2,766
3,060
3,081
1,991
42,912
39, 759
33.565
8,755
42,740
28,387
50,967,
65,493
10,873
13,4411
13, 688!
12,504!
12,775
12,257
18,242
12,427
12,710
14,118
19,872
19,614
23,422
21,825
22,422
23,203
14,440
15, 482
18, 750
23,850
4,756
4,084
5,294|
7,109!
1,834
2,069
1,985
1,750
8,361
8,268
8,041
6,690
2,755
2,879
1,797
590
5,122
4,751
5,185
6,203
132,509
128,433
192, 794
263,487
33,329
41,408!
49,129
55,829
44,275 19,809 34,732 59,473 12,449
56,126 20,840! 33,606 83,934 13,906
75,639 28,7511 35,739 68,444 22.831!
70,572 28,6361 32,685 61,759 19,585!
2,552 15,066
3,542 16,005
3,571 16,599
2,234 15,920
5,521 48,034
5,939 44,510
4,878 38,750
2,581 14,958
90
FEDERAL RESERVE BULLETIN
JANUARY,
1928
RESOURCES AND LIABILITIES. BY WEEKS-Continued
[In thousands of dollars]
RESOURCES—Continued
Federal Reserve Bank
Total
Bills bought in open market:
Dec. 7
Dec. 14
Dec. 21
Dec. 28
U. S. Government securities:
Bonds—
Dec. 7—
Dec. 14
_
Dec. 21
Dec. 28
Treasury n o t e s Dec. 7
Dec. 14
Dec. 21
Dec. 28
Certificates of indebtedness:
Dec.7
Dec. 14
..
Dec. 21.._
Dec. 28
Total U. S. Government securities:
Dec. 7 . . . .
L.Dec. 14
Dec. 21
_
Dec. 28
Other securities:
Dec.7
Dec. 14
Dec. 21
Dec. 28
Total bills and securities:
Dec.7
_
Dec. 14
Dec. 21
Dec. 2 8 . ,
Due from fofeign banks:
Dec. 7
Dec. 14.._
Dec. 21
Dec. 28
Uncollected items:
Dec.7
Dec. 14
Dec. 21
Dec. 2 8 . . .
_
Bank premises:
Dec. 7
Dec. 14
Dec. 21
Dec. 2 8 . . All other resources:
Dec. 7
Dec. 14
Dec. 21
Dec. 28
Total resources:
Dec. 7_.__
Dec. l l . . _
Dec. 21
Dec. 28
379,998'
381,125
365,772
385,527
6,116
5,854
9,639
10,485
266,243
270,980
276,390
287,746
14,489
15,021
15,516
15,1731
48,682
50,009
51,471
63,120]
16, 713 j
17,072!
17,433 i
17,433|
34,194
34,611
35,028
35,028
5,957;
o,o9i;
6,225!
6,225!
5,932;
5,869
5,946 !
5,988|
56,105i
59,245
53,907
62,531
2,601
3,335
2,464
2,464
8,551
9,205
9,315
16,890
6,526
6,744
6,398
6,398|
9,171
9,424
8,974
8,974
810|
892!!
713
713;
2.476:
2,547!
1,145!
281,853
267,670
257,655
252,849
17,869
17,897
18,197
17,479
114,917
101,113
93,242
88,669!
22,191
22,106
21,833
21,833
17,856
17,757
17,509
17,509
5,649
5,616
5,514
5,514
6,810
6,782
6,692!
6,692'
604,201
597,895
587,952
34,959
36,253
36,177
35,116
172,150
160,327!
154,028.
168,679
45,430)
45,922 j
45,664!
45,664|
61,221
61,792
61,511
61,511
12,416
12,599
12,452
12,452
.',218|
15,198!
13,783
- """••
13,573;
915
950i
100.
100:.
100 :.
100-
l,429,021i
1,474,943
1,532,860
1,598,842!
566
566
569
_.
_
37
37
37
37
647,516
828,912
759,246
728,018
63,229
82,256
68,471
68,407
60,067
60,176
60,190
60,185
_.
114,195
133,556
122,230
124,817
3,946
3,946
424,310;
393,193
423,718
528,097!
213
213
216
215
160,311
225,041
197,059
192,263!
111,413!
120,107
136,554
143,872!
20,544
20,883
21,223
21,222i
17,491
17,766
18,101
18,100
25,146
25,576
26,006
26,006
4,48o!
4,597 j
4,41l!
4,411;
3,024;
3,230:
2,723
2,723
2,489
2,654
2,444
2,494
2,465
2,725
2,312
2,313
32,149; 12,116
32,341! 12,055
31,744; 11,861
32,229; 11,861
8,004
7,959
7,811
7,811
14,735'
14,654 \
14,396'
14,397!
11,370
11,306
11,099
11,099
18,187
18,084
17,757
17,756
85,581 j 37,999
86,5391 38,347;
86,213! 38,163!
87,958|
23,776
24,040
23,900
~* —
23,900
38,3031
38,767!
38,342
38,3421
31,350 45,798
31,726 46,385
31,644 46,075
31,693 46,075
61,678i
63,394 ;
62,916 :
62,334
59,549
59,901
58,272
56,959
5,989!
6,215'
5,575!
6,825!
7,523
7,677|
7,433'
7,433:
555
590
620
620
260.
260260 .
260.
81,507! 52,751 198,797: 54,835' 47,218
122,8
137,620 83,320 51,366 230,796', 56,640 48,301
156,895 92,179 52,084 220,860; 65,5631 47,125
151,877 89,440| 48,769 213,826: 62, 707 44,626
47
47
47
47
52
52
52
52
25
25
25
25
20,
20
20
20
54,800
72,372
66,128
61,223
57,688
75,326
71,848
53,224
66,874
57,403
56,839
25, 769
29,772
30,585
29, 743
7,116
7,119
7,119
7,119
2,-37!
2,843
2,843
2,843
2,904
2,904
2,908
2,908
1,24'
1,275
1,286
1,320
4G0!
435!
3,383
1,357
16,284! 1,'
16, 287j 1, 749
16, 2971 1, 749
16,297 1,749
47,443 18,360: 11,292
47,983 18,615! 11,484
48,894:
11,678'
48,904; 18,869 11,678|
67!
67'
67;
67;
21
21,
21
21
34,541
,
38,570
94,232 35.683
94,354! 38,207
79, 728|
8,774! 3, 958
8,774: 3, 957!
8,774! 3,957
8,774; 3,957j
34
34
34
34
18;
18 ;
18;
15,560
15,357
16,904
16,323!
99,948
96,749
94,464
71,518
41,424:
45,045!
45,187!
42,338!
28,526
34,638
30,247
29,564
36,864
49,429
45,377
44,150
4,476:
4,476;
4,476;
1,827
187
1,827
1,827
1,827
3, 519
3520
3,520
3,520
3,515
568;
556.
4251
451!
481
579
492
869
871
872
877
1,335 !
1,331.
l41l!
704
769
740
746
2,774!
2,7741
2,774!
2,774;
1,439'
l,419i
1,435!
1,236;
5,158, 349! i 384,302 1, 582,165 364,280 496, 9251 2 2 4 , 3 1 2 ; 2 5 8 , 4 3 € 711,524!
5,353,632!; 4.10,906 1, 627, 907 389, 976 528, 218 236,544' 258,2(18 744,421;
5,280. 080 396,417 1, 625, 627 379, 736 509, 615 227,583! 201,001 746,91l|
5,333,839 401,256 l,648,099: 380,910 519,414 227.678; 262,475 750,096!
195,3351
190,572
192,335
200,052
145,5541
145,063
142,707!
144,085!
2C9, 784
214,671'
212,756'
214,261 i
160,782
163,859
159, 5831
160,458!
424,950
436,927
425,809
424,955
54, 409
55, 524
57, 300
57,530!
61,234
01,204
62,072
61,520
06,979:
07,135,
68.447^
68,045
49,245!
48,055'
49,650;
48,789;
173,596
171,803
176,249
170,746
14,176
14, 759!
14,462
14,383
3,946
87
175
91
91
5,315
5,897
5, 515
5,899
217
193
190
212
3C01.
434!
l,. r )28
1,336
LIABILITIES
Federal reserve notes in circulation:
Dec.7
_..
Dec. 14
Dec. 21
Dec. 28
1, 749, 795;
1, 766, 735!
1,821,332i
1,813,198'
141, 908
145,713
150, 681i
151,697]
300,490
308,018
"OJ
383,884
377,204
onn
_,,_
142,059 217,099!
149,0301 221,024!
150.354! 227,284
140,409! 225,939
78,270
77,93o|
81,122
80,203
147,957
140,122
149.379
147,230
240, 877
253,911
265,110
271, 754
91
FEDERAL RESERVE BULLETIN
JANUARY, 1928
RESOURCES AND LIABILITIES, BY WEEKS—Continued
[In thousands of dollars]
LIABILITIES-Continued
Federal Reserve Bank
St.
Louis
Cleveland
Deposits:
Member bank—reserve accountDec. 7
_
Dec. 14
Dec. 21
Dec. 28
GovernmentDec. 7__
Dec. 14
Dec. 21
Dec. 28
Foreign b a n k Dec. 7
Dec. 14
Dec. 2 1 . .
Dec. 28
Other depositsDec. 7
Dec. 14..
Dec. 21
Dec. 28
955,064!
953,2461
955,770
983,668
135,047
136,960!
133,865
141,483
183,874
192,513
180,852
186,390
33j
63
4,040
15,425 I 1,249
16,680! j 1,061;
90
72
5,763
33
77
404
609
660
692
10
188
191
808
698
!
215;
1,310'
2, 972;
G2
671
250
2,315
5,410
4,473
4,338
4,423
363'
363|
363;
363:
1,911
974
839
924
465
465
465
465
513
513!
513!
513;
252
252
252
252
198!
23,010
20,894
19, 905
20,328
852
685,
304;
188,
11,151!
9,920!
9, 688
10,162
317
373
384
297
l,534i
579
348
353
207
135,862 186,530!
137,875 194,903;
135,118 183,086
143,614
Total deposits:
I
Dec. 7
1 2,
427,253 ! 154,537:
Dec. 14
_. 2, 447,979 159,539|
Dec. 21
2, 434, 003 154,976 i
Dec. 28.
.._
2, 473,276 156,805;
Deferred availability items:
602, 517 59,968'
Dec. 7
Dec. 14
758, 776 77,815;
Dec. 21
644,451 62,844 i
Dec. 28..
666,322 64,780|
Capital paid in:
9,408;
Dec. 7___
131,738
9, 408:
Dec. 14
132, 315
9,412
Dec. 21
132,403
9,412;
Dec. 2 8 . . . .
132,460
Surplus:
Dec. 7
228, 775 17, 606
Dec. 14
228, 775 17,606:
Dec. 21
228, Ti\ 17, 606
Dec. 28
228,775
17,606;
All other liabilities:
Dec.
Dec.
Dec.
Dec.
18,271
19, 052
19,116
19,808
7
14
21
28
T o t a l liabilities:
Dec. 7
Dec. 1 4 . . .
Dec. 2 1 . . .
Dec. 2 8 . .
MEMORANDA
!
.! 5,158,34!
I 5,353,632
•• 5,280,080
j 5,333,""
_
815!
825
898:
956
384,302
410,006
396,417
4.01,256
1,217;
1,029;
1,149 i
88,180
84,546
83,356
86,445
59,391
57,046
54,822
55,712
90, 724
91,207
92,860
91,912
68,560
68, 399
66,807
68,312
179,859
185,656
178,234
173,065
82
235
891
1,424
111!
551
1,040
1,038!
132
89
1,027
1,036
79
316
751
1,266
342
900
1,240
2.593
198
668
668
668
668
208!
208!
208 j
145
145
145
145
179
179|
179;
179!
169
169
169
169
339
339
339
339
292
142
227
113
1,046
1,101
1,151
2,088
890;
650:
638
451
521
542
390
1,412!
1,2211
923 i
655!
125
140
158
93
4,291
4,555
4,660
4,592
74,667
74, 302
73, 62:
74,347
69,914
67,485
69,942
72,903
341,788
352, 570
356,363
351,926
68,933
69,024
67,885
93,782; 69,840
184,831
191,450
184,473
180,589
51, 743
64, 69C
53,20C
53,431
24,932
29,020
26, 051
26,697
6,252
6,252
6,253
6,253
I
i
968,216^
964,212)
972,060
995,652
61,614
61, 614!
61,614|
61,614
21,267
21,267
21,267
21,267
53, 743|
72,011!
59, 579;
65,656!
i
13,958!
13,959!
13,979;
13,979;
23, 746J
23,746J
23, 746
23,746|
4,300J
4,722
4,611
5,053
869
841
922
994
1,849'
1,9751
1,941'
2,032 j
1,582,165;
1,627,907!
1,625,627!
1,648,099!
364,280'
389,976J
379,736!
380,910!
496,925!
528,218j
509,615,
519,414
141,371
188,542
163,400|
168,2661
50,331
67, 725
58,838
55,329
40,168! 13,292
40,199 13,232
40, 258 13,237
40,310 13,237
89, 360! 60,168
85, 639 j
85,093] 56,397
88,628J 57,228
92, 447
67,385
84, 721
72,180
73,113
34,938i
38, 716;
33,224;
37,256;
12,494
13,841
12,560j
13.846J
36,195!
40,976!
35,180;
38,273;
29,360
33,500
28,806
28,526
5,136
5,136
5,136
5,145
17, 370
17,970
17,969
17,965
5,326|
5,330i
5, 340!
5,34l!
3,011
3,012
3,011
3,0101
4,240!
4,240
4,233
4,234!
4,274
4,274
4,273
4,272
9,302
9,302
9,302
12,19*
12,19*
12,198
12,198
9,632
9, " ~
9,632
9,632
31,881
31,881
31,881
31,881
9,939!
9,939;
9,939 i
9,939!
7,527!
7,527,
7, 527!
7,527|
9,029!
9,029;
9,029;
9,029;
8,215
8,215
8,21£
8,21.
16,121
16,121
16,121
16,121
1,17;
1,17:
1,182
1,18£
865
873
861
868
3,223
3,368
3,457
1, 363;
1,424!
1,439;
1,452:
1,120
1,135
1,140;
l,048i
894!
895 i
878;
898;
75.
791
754
8I1
1,043
1,032
1,081
1,048
224,312
236,544
227,58
227,678|
258,436
258,268
261,00l|
262,475!
711,521
744,421
746,911
750,096
195,335;
196,572;
192,335
200,052!
145,554;
145,063;
142,707j
144,185'
209,784 j
214,971!
212,756!
214,261j
160,78:
163,85<
159,58;
160,451
424,950
436,927
425,809
424. 955
71.2;
66.4!
66.9!
70.3'
68.0;
65.8:
58.2;
6L7;
64.1!
63.7;
61.9!
65. 7!
62.3
62.1
59.8
62.9
57.8
55.2
56.7
58.0
25, 694!
27, 737:
30,619!
30,894!
8,006!
8,643!
9,541;
9,626;
5,586!
6,030:
6, 656'
6, 716,
6,8891
7,437!
8, 209|
8,283:
6, 517
7,035
7,766!
7,835!
13,033
14,069
15,531
15,671
30,, 527; 57,043!
;
31,1601 59, 518;
29,6471 57,264
32,339! 54,757:
6, 772
7,848:
6, 670!
6,834!
7, 473
5,903:
5,846;
5,980'
8,352:
10,173;
10,270;
10,078:
8,074
9,164
9,013
9,850!
54, S27
56, 709
59,123
57,198
I
40, 057
47,219
41,149
!
R a t i o of total reserves to F e d - i
era! reserve note a n d deposit j
liabilities combined
(per j
cent):
•
Dec. 7
!
Dec. 14
I
Dec. 21
_ i
Dec. 28
...J
C o n t i n g e n t liability on bills j
purchased for foreign corre- '•
spondents:
|
Dec. 7
i
Dec. 14
____!
Dec. 21
_
Dec. 28_._.
O w n Federal reserve notes held
b v Federal reserve b a n k :
"Dec. 7
i
Dec. ]4
!
Dec. 21_
_.i
Dec. 28
_
_
!
73, 648 69,4141 340,012
73,511 66,930; 350.130
72,208 68,207 354, 294
73,190 69,620! 346,85;
153,2891
158.428!
153,060.
155,193;
2, 397,062 i
2,418, 572
2, 394,335
2,431,845
San
Francisco
Minne- Kansas
City
apolis
1
70.7
69.2
67.21!
66.8|i
66.2;
60.2^
63.4;
63.5i
i
|
187,5871 13,964
201,112! 15,074
223,870; 16,641:
226,9041 16,790;
|
I
425,491; 34,888;
456,125)! 41,049:
439,8201 43,512
460,382!! 45,585^
;
71.9
72.8!
71.3!
64.4!
70.1
67. 8 ;
61. Oi
59.
75.61
72.7i
65. 5]
68.8!
53. 5
51.6
45. 41
46.5
78.8
79.21
77.7!
79.6!
52,972!
55,795!
63,454;
65,048j
17,874;
19,295!
21,300|
21,491;
19, 736
21,305=
23, 519!
23,730'
9,682!
10,451!
11,537|
ll,641i
7, 634
8,241
9,097
9,179!
136, 91C!
152,367;
140,828i
141,833!
31, 646:
29,640!
32, 763;
37,642!
30, 735!
34,275!
29,870|
30,862!
18,238
18,3191
15,014!
17,424!
78.0
77.8
77.0
84.0
92
FEDERAL RESERVE BULLETIN
JANUARY, 1928
FEDERAL RESERVE NOTES—FEDERAL RESERVE AGENTS' ACCOUNTS, BY WEEKS
[In thousands of dollars]
Federal Reserve Bank
Total
Boston
NewYork
Philadelphia
Cleveland
San
Francisco
Minne-1 Kansas
apolis i City
! Atlanta Chicago
I
Federal reserve notes received
from comptroller:
Dec. 7
Dec. 14.._
Dec. 21
Dec. 28
Federal reserve notes held^by
Federal reserve agent:
Dec. 7
Dec. 14
Dec. 21
Dec. 28..
Federal reserve notes issued to
Federal reserve bank:
Dec. 7
Dec. 14
Dec. 21
Dec. 28
Collateral held as security for
Federal reserve notes issued to
Federal reserve bank:
Gold and gold certificatesDec. 7
Dec. 14
Dec. 21
_..
Dec. 28
_
Gold redemption f u n d Dec. 7
Dec. 14
Dec. 21
Dec. 28
_
Gold f u n d Dec. 7
Dec. 14
Dec. 21
Dec. 28
Eligible p a p e r Dec. 7
Dec. 14
Dec. 2 1 . . .
Dec. 2 8 . . .
Total collateral:
Dec. 7
Dec. 14
Dec. 21
Dec. 28
2,975,476
3,017,610
3,037,792
3,043,440
239,856
238,362|
251,193j
249,382
779,892
797,465
800,992
795,517
800,190
794, 750
776, 640
779,8601
63,000|
51,600|
57,000i
52,100'
276,480
276,480
276,480
276,480
2,175,286!
2,222,860|
2, 261,152!
2,263,580
176,856|
186,762!
194,193'
197,282!
503,412
520,985
524,512
519,03^
405,467
405,778
406, 579
407,928
35,300|
35, 300!
35,300!
35,300;
205,150
205,150
205,150
205,150
100, 783
99,126
100,483
106, 794
14,669*
13,175j
10, 606
18,796
19,
19, 917
19,917
19, 917
59, 000 75, 000
59 000 115 000
69, 000 60,000
74,000
214,505 294,664 121,353! 230,704 457,720|
216,676
121,0781 231,762 473,9291
216,117 296,484 122,4351 231,026 473,074
214,211 296,131 121,646! 233,209 483,311
1,024,417
1, 080,105
998, 036
954,533
AOO
40,200 46,830 24,839i
38,000 43,0301 24,829
33,000 39,330 26, 299:
30,100
23,959,
247, 834
255,899
257,154
256,801
96, 514J
96,249
96,1361
97,687
178,484
177,282
179,026
179,569
40,000
40, 000
40,000
40,000
29, 830
29,831
29, 831
29,831
8,828
11, 200
13, 240
11,334
12,372
14,036
12, 892
14,339
5,095
4,320
3,276
2,487
108,477
110,477
99,877
97,877
150,000
150, 000
140,000
125,000
57, 816
63, 759
76, 646
75,505
2,320, 985 188,205 532,279
2,411,511 204,778 540,552
2, 412, 490 200,959! 542,115
2,408,145 217,797 560,840
175,121
1S5, 436
189, 763
184,716
79,236
97, 303
86,053
89,701
OA
OA
4O£
11O
112,721!
114,448|
114,3371
113,4431
75,236
74,546
73,765
74,371
284,423
284,512
292, 672
296,844
iiOi
MA
O*T1
17,620
16,930
16, 490
16,570j
16,8941
18,434
17,319
16,929J
37,390
37,140
35,620
35.320J
17,917
17,327
15,102
15,732
56, 000
56, 000
57, 300
62,900
306,920
313,429
322,374
326,511
61,181
63,372
63,970
64,370
68, 707
67,167
67, 918
67,506
75,331
77, 308
78, 71'
78,123
57,319
57,219
58, 663
58,639
228,423
228, 512
235,372
233,944
7,500
7,450
7,350
7,200
12,267
12, 667
12, 667
14,167
17,303
17,303
17, 303
17,303
40,000
40, 000
40, 000
40,000
4,211
3,521
3,241
5,266
18, 239
17, 960
17, 729
17,504
49, 860 8,500
53, 860 9,500
53, 860 13, 000
55,860 12,000
132, 780
140, 268
141, 299
160,696
100,561!
101,6641
106,646
103,816
7,895
5,993!
8, 656
8,240
2, 767
2, 767
2, 767
2, 767
2,476
2,317
1,515
1,196
728
728
2,364
1,562
115, 300
117, 500
113, 500
117,600
61,140 65,636
74,875 67,513!
93,734 73,539
88,496 71,498
263, 512
278. 911
286, 626
267,835
r\Ai\i
85,601
85,60l|
85,237
84,435i
150, 800
160,500!
150, 700^
156,800;
18,117
18,077
18, 978
18,977
174, 305
178, 676
183,117
184,111
232, 211
200, 485
257,048
335, 773
790, 318
826, 502
907, 392
938,890
52,220
54,480
52, 000
53,640
Oil
78,801
80,302
80,460
80,940!
255, 000
255, 000
245, 000
245,000
35, 500
37,500
30,500
33,500
35,000
32, 000
32,000
33,000
37,207
35,813
37,959|
34.811J
112,940
144,118
134,478
125,687
16, 792 22, 626J
18,184 23,174
27, 351 22,100
24,499 19,814
23, 283
24, 501
24, 473
23,891
28,152 53,279
28,129
26, 579 47,432
25,217 23,998
178,519.
177,383
179,093!
179,6281
370,707
401,885
382,245
373,454
62, 268
65, 451
66,716
66,395
76,728
81, 553
82, 613
83,137
58,166
58,453
60,123
59,786
70, 621
68, 569
69,131
68,543
3,585
3,192
4,280
3,386
244,298
246,876
246, 460
242,198
MATURITY DISTRIBUTION OF BILLS, CERTIFICATES OF INDEBTEDNESS, AND MUNICIPAL WARRANTS HELD BY FEDERAL
RESERVE BANKS
[In thousands of dollars]
Total
Bills discounted:
Dec. 7
Dec. 14
Dec. 21
Dec. 28
Bills bought in open market:
Dec. 7
Dec. 14
Dec. 21
Dec. 28
Certificates of indebtedness:
Dec. 7
Dec. 14
Dec. 21
Dec. 28
Municipal warrants:
Dec. 7..
Dec. 14
Dec. 21
Dec. 28
Within 15
days
443,907
494,973
578,156
609,209
438,526
515,415
537,482
379,998
381,125
365,772
385,527
155,324
153,976
141, 772
172,348 |
281,853
267,670
257,655
252,849
155
190
220
220
16 to 30
days
31 to 60
days
91 days to i Over 6
6 months ! months
17,465
16,835
20,455
18,330
21,386
19, 288
20,781
26,892
11,440
11,844
13,368
18,617
6,320
6,625
6,704
6,423
77,774
88,522
99,627
110,201
115,489
107,092
29,346
29,673
24,786
23,207
2,065
1,862
1,319
1,337
157,098
153,370
170,301
168, 593
65,853
66,013
78,434
59,932 L
46,165 !
.
22,479 L
20,851 i.
100 i
100 i
61 to 90
days
155
100
120
120
90
1,257
1,855
1,433
1,465
51,620
52,912
12,225
12,615
93
FEDERAL RESERVE BULLETIN
JANUARY, 1928
FEDERAL RESERVE BANKS—AVERAGE DAILY RESERVES AND DEMAND LIABILITIES IN DECEMBER AND NOVEMBER,
1927
[Amounts in thousands of dollars]
December
Boston
New Y o r k . . . .
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
_
'
_
.._._
,
'
-...'
:
Total
193,933
941,022
184,282
294,502
76,368
171,775
421,954
89,255
74,479
99,453
66,743
279,651
199,110
., 028, 686
191, 792
298, 660
77,115
180,160
431, 038
88, 061
74, 782
93,392
65,477
283, 073
; 2,893,417
November
156,775
959,131
140,113
188, 794
75, 111
70,524
350,010
87, 915
56,427
93,282
69,849
188,053
!
161, 702
946,306
142,328
192, 759
76, 719
70,412
345, 669
87,920
57, 823
94, 240
69,165
184, 933
December ! November
63.8
70.3
63.8
71.6
49.3
78.5
69.2
61.9
63.1
61.8
56.1
77.0
66.5
78.0
69.2
73.7
50.4
80.6
73.7
62.3
62.2
58.4
54.7
79.3
i8.4
137, 749
371, 836
134,981 !
212,307 [
76,246 i
153,033
238,934 I
53,375
62,458
65, 754
50, 484
171, 921
147,245
378, 762
148,813
222, 525
79,830
148,408
259, 758
56,214
61,613
67, 587
49,142
175,020
72.4
3,011,346 I 2,435,984 | 2,429,976 ! 1,794,917 ; 1,729,078 •
GOLD SETTLEMENT FUND—INTERBANK TRANSACTIONS FROM NOVEMBER 17 TO^DECEMBER 21, 1927, INCLUSIVE
[In thousands of dollars!
Transfers for Government account
Federal reserve note
clearing
Transit clearing
Federal reserve bank
Debits
Boston
__
New Y o r k . .
Philadelphia.
Cleveland
Richmond
Atlanta.
Chicago
St. Louis
Minneapolis. _
Kansas City
Dallas
San Francisco
_
_
Credits
j
!
I
!
|
I
!
j
34,200
186,550
33,000
15,000
23,000
28,000
25,000
1,000
_..:
_!
'
Total 5 weeks ending—
i
Dec. 21, 1927__
j
Nov. 16, 1927...
'
Dec.22, 1926__
___j
N o v . 17, 1926
_
__
_
_
_
Debits
Credits
Debits
Credits
3,000
15, 000
35,000
8,400
212,200
16,000
32, 600
10, 400
5,600
32, 200
26, 300
8,600
23, 800
5,550
17,100
1,142,822
4,106,836
1, 052, 643
917,129
953, 579
400, 517
1, 642, 883
778, 649
245, 885
605, 414
469,923
618, 343
1,166,260
4,136,113
1, 069,475
885, 518
947, 407
413,267
1, 641,425
739,464
238, 948
589,237
481,223
626,286
6,262
12,577
7,472
10, 797
3,173
3,666
9,447
2,116
2,128
2,946
1,941
3,648
398, 750
163,200
148, 000
59,000
12,934, 623
13,189, 794
11, 647,788
11, 885, 383
12,934, 623
13,189, 794
11,647, 788
11,885, 383
66,173
68, 078
62,442
66,914
Decrease
4,408
19,458
5,656
4,823
4,030
4,925
8,659
4,117
2,011
3,236
2,234
2,616
398,750
163,200
148,000
59,000
Changes in ownership
of
gold
through
transfers and clearings
66,173
68, 078
62,442
66,914
Balance
in fund at
close of
period
Increase
27,713
238,205
25, 017
24,800
20,691
6,968
97,850
19, 355
14,415
25,818
14,830
4,216
61,808 !
1,984
19,985
17,915
8,391
4,954
11,884
1,546 !
4,913 !
2,143 !
10,989
75,364 |
75,364 |
554, 358
603,855
657,024
709,239
FEDERAL RESERVE BANKS—HOLDINGS OF BILLS AND SECURITIES, NOVEMBER, 1927
[In thousands of dollars]
Federal Reserve Bank
Total
New
York
Cleveland
Richmond
Atlanta
Total bills and securities...
1,380,515 111,826 366,240 117,560 117,942
477,025
38, 570 148,115 40, 682 39,987
Bills discounted-.
Bills bought in open market- 354, 740
39,021 104,063 32,048 17,098
United States securities
547, 835
34, 235 114,062 44, 730 60, 857
Other securities
915
100
81,396
18,953
50,026
12, 417
57,
39,
2,
14,
Boston
Philadelphia
Chicago
St.
Louis
Minne- Kansas
apolis
City
Dallas
San
Francisco
61,061
18, 723
4,439
37, 899
48,144
3,723
20, 590
23, 276
555
66, 518
19,439
8,926
38,153
62, 679
6,784
18,414
37,481
94,673
41, 254
7,622
45, 797
5,855
345
1,821
7,621
519
11
3,509
HOLDINGS ON NOV. 30,1927
Bills Discounted
Rediscounted bills:
Commercial and agricultural
paper, n e s
Demand and sight drafts
Bankers' acceptances
Trade acceptances
Secured by United States
Government obligations
Member bank collateral notes:
Secured by United States
Government obligations...
Otherwise secured
345, 558
34, 318
Total discounted bills >....
477,025
94,954
391
28
1,539
237
1
16, 675
6,552
54
52
101
8,431
4,034
6,554
618 194, 858
899 60, 896
546 49, 947
913 84,015
260
17, 506
29
15, 877
28
35
224
254
744
32
40
1
7
14
54
50
48
2
6
1
21,789 132, 873
8,589
27,489
4,726
33,477
2,245
10, 585
1,546
43, 444
1,493
11,374
1,061
1,802
98
10,397
1,381
2,686
3,567
36,669
1,019
38, 570 148,115
40, 682
39,987
18,953
12,973
8,593
39, 899
60,896
18, 723
3,723
19,439
6,784
41, 254
57
Includes $20,005 secured by adjusted-service certificates held under discount for nonmember banks and $1,122,707 held under discount for
Federal Intermediate Credit Banks.
79290—28
7
94
FEDERAL RESERVE BULLETIN
JANUARY, 1928
FEDERAL RESERVE BANKS—HOLDINGS OF BILLS AND SECURITIES, NOVEMBER, 1927
[In thousands of dollars]
*
Federal Reserve Bank
Total
New
York
Boston
HOLDINGS ON NOV. 30,
1927—Continued
Bills Bought
Bills payable in dollars:
Bankers' acceptances based
on—
Imports _
Exports
Domestic transactions
Dollar exchange
Shipments between on
storage of goods in
foreign countries
All other
Trade acceptances based on—
Imports
Domestic transactions..
Bills payable in foreign currencies.
Total bills purchased
United States Securities
United States bonds.
Treasury notes
Certificates of indebtedness
Philadelphia
Cleveland
Richmond
Atlanta
St.
Minne- Kansas
Louis apolis City Dallas
Chicago
San
Francisco
84,989
109,139
81,880
8,188
8,311
8,508
16,163
891
25,049
30, 289
19,064
2,872
5,744
9,070
8,688
1,310
3,303
5,451
3,010
231
15,326
17, 544
9,736
490
710
1,325
470
12,966
14, 786
11, 750
1,153
1,726
1,361
475
162
3,980
7, 746
3,603
896
2,482
3,689
1,421
2
4,479
5,976
4,939
181
913
3,394
2,561
64,185
4,680
4,770
359
23, 265
2,952
6,142
1,070
4,043
109
6,917
30
9,253
4
690
14
4,358
1,323
2,830
564
172
10
436
66
446
66
70
24
941
13
11
35
11
7
9
9
18
354, 740
39,021 104,063
32,048
17,098
50,026
2,546
49,947
4,439
20,590
8,926
18, 414
7, 622
264, 732
55, 611
227, 492
14,054
2,654
17, 527
16, 346
6,472
21, 912
33,963
9,130
17, 764
5,931
811
5,675
5,680
2,413
6,820
46,489
5,379
32,147
18, 267
7,516
12,116
11,042
4,441
7,793
20, 412
3,013
14, 728
19, 542
25,060
3,012 j 2,465
14,927
18,272
44, 730
60, 857
12, 417
14,913
84,015
37, 899
23, 276
38,153
37 481
dr> 7Q7
112,418 130, 867
38,064 46, 833
28, 723 18,283
45, 531 65, 751
100
82,976
21,516
48, 656
12, 804
49, 582 182, 999
32, 695 46, 887
2,335 45,180
14, 526 90,932
26
62, 215
18,135
4,937
39,143
50,454
2,603
19, 782
27, 549
520
68,134
18,116
10,668
39,350
62,988
8,388
18,519
36,081
91,991
39,114
6,145
46, 732
1,167
19
47, 946
8,305
57, 811
Total United States securities - 34, 235 ii4. C\KI
547, 835
DAILY AVERAGE HOLDINGS DURING NOVEMBER, 1927
Total bills and securities
1,331,008 108,453 1327,931
Bills discounted
36 354 nofi AH
415, 216
Bills bought
38,720 ! 93,960
335,908
United States securities
_ 579, 238 33,379 ! 127,460
Other securities
646
FEDERAL RESERVE BANKS—VOLUME OF. DISCOUNT AND OPEN MARKET OPERATIONS DURING NOVEMBER, 1927
[Amounts in thousands of dollars]
Total
Total Volume of OperationsBills discounted for member
banks 2
_
Bills bought:
In open market
_.
From other Federal reserve
banks
United States securities bought:
In open market.
From other Federal reserve
banks
_
._.
Municipal warrants bought
Bills Discounted
Rediscounted bills:
Commercial and agricultural
paper, n. e. s
Demand and sight drafts
Bankers' acceptances
Trade acceptances
Secured by U. S. Government obligations
Member bank collateral notes:
Secured by U. S. Government obligations.
Secured b y eligible paper 3__
Total..
New
York
Boston
14,139,022
Phila- Clevedelland
phia
Richmond
55,690 163,537
22,595
11,569
19,133
1,100
14,602
1,229,141
St. Minne- Kansas
Louis apolis City Dallas
356,347 1,526,543 235,326 514,932 160,871 184,160 474,397 145,256
2, 504,200 251,537 842,015 143,695 354,570 122,833
385,051
Chicago
Atlanta
48,521 519, 371
1,620
701
79,156
1,703
28
1,144
3,219
4,713
6,091
3,210
174
4
14,059
419
99,355
10,420
4,700
1,301
1,800
42,157
10,971 245,206
9,541
2,694
46,727
28,846
46,779
19,272
38,350
179
400
145
5,070
14
28
336
309
3,730
45
40
1,400|
I
14,066
208
20,694'
13,367!
I
1,1721.
226 """425
23:
22
""""250
9
1,973,182
448,813
150,370 654,997 117,521 319,928
97,909 182,210 20,061 31,182
2,504,200
251,53:
4,9
62,171 307,178
15,623
24L
I
95
59,588
29,842
i
3,950
150
70
35
99,266 375,515
900
2,236
4,801.
68,335 147,274
599
70,653 181,064
53,577 112,832
San
Francisco
74,118
44,530
842,015 143,695 354,570! 122,833
8
35,374 151,796;
20,572
8,551
710
44
16
75,846
8,930
70,653 181,064! 99,355!
135
8,629
202
49,068
5,406
51,327 284,208
10,064 19,196
9,541
59,588
62,171 307,178
1 Includes $260,000 Federal Intermediate Credit Bank debentures.
2 Includes $1,000 secured by adjusted-service certificates discounted for nonmember banks; also $125,000 discounted for the Federal Intermediate
Credit Bank of St. Louis, Mo., and $1,900,000 discounted for the Federal Intermediate Credit Bank of Berkeley, Calif.
3 Includes bills taken under a resale contract.
95
FEDERAL RESERVE BULLETIN
JANUARY, 1928
FEDERAL RESERVE BANKS—VOLUME OF DISCOUNT AND OPEN MARKET OPERATIONS DURING NOVEMBER, 1927—
Continued
[Amounts in thousands of dollarsl
Total
Boston
New
York
Philadelphia
Cleveland
Atlanta
Richmond
St. Minne- Kansas Dallas
Louis apolis
City
Chicago
San
Francisco
Bills Discounted—Continued
Average rate (365-day basis),
per cent
Average maturity (in days):
Member bank collateral
notes
Rediscounted bills
Number of member banks on
Nov. 30 Number of member banks accommodated during month
Per cent accommodated... .
3.50
3.50
3.50
3.50
3.50
3.50
3.50
3.50
3.5C
3.50
3.50
3.50
3.50
5.89
50 58
6.34
42 69
5.10
49 97
8.82
43 88
4.06
50 91
3.24
47 29
12.69
48 01
13.32
51 58
6.18
30 82
5.91
119 35
7.00
96 18
4.22
33.72
4.42
74.41
9, 067
412
935
779
837
568
464
1,291
596
741
971
805
667
2,350
25.9
145
35.1
345
36.9
344
44.2
231
27.6
166
29.2
136
29.3
400
31.0
175
29.4
75
10.1
193
19.9
41
5.1
99
14.8
76,191
16, 585
11,823
2,088
5,760
7,059
2,236
17,985
822
3,890
1,592
3,455
2,896
115,923'
10,465
23, 549
20,507
5,809
12, 074
18, 098
1,872
6,530
3,393
7,907
5,719
192, 937
28,640 128.165
4,261
21, 227
385,0511
55, 690 163, 537
22, 595
11, 569
19,133
2.236
46. 727
2,694
10,420
4,985
15, 623
29, 842
133,130'
1,847
237, 036
9,746
3,096
167
9
15!
5
13, 450 28,384
36
155
41, 773 134,186
410
312
377
144
10,642
82
11,549
322
10.086
6,876
783
8,721
2,657
87
428
32, 601
730
7,078
4,972
1,303
23
2,332
315
47
9,027
17
1,309
67
4,239
1,119
639
106
1
8,174
38
6,007
789
615
6,891
6
22, 874
57
14
Bills Bought in Open Market
From member banks
From nonmember banks, banking corporations, etc.:
Bought outright
Bought with resale agreement
Total
Bills payable in dollars:
Rates charged—
3 xper cent.
Z /% per cent...
Z\i per cent
3% per cent
3/4 per cent
3*HJ P^r cent
3/4 per cent
zy% per cent
4 per cent
Average rate (365-day basis),
per cent
Average maturity (in days)4
Class of bills:*
Bankers'
acceptances
based on—
Imports
Exports
Domestic transactions
Dollar exchange
Shipment between
or storage of goods
in foreign countries
.
Total
1,466
7
10
689
9
15
5
3.22
47.18
3.24
56.86
3.25
32.92
3.22
60.47
* 3.11
37. 73
3.27
62.94
3.32
60.13
3.19
42.53
3.12
41.82
3.11
41.25
3.12
42.34
3.21
48.21
3.20
44.58
40, 364
62,324
5,276
6,307
6,610
13,851
4,492
6,099
2,370
4,155
3,750
5,582
513
1,285
8,096
10,872
854
955
2.864
3,106
1,749
1,690
2,770
3,656
1,020
4,766
52,054
4,799
10, 711
884
8,652
795
6,661
935
2,501
223
5,732
240
363
9,063
902
380
162
1,807
405
861
2
2,956
251
2,367
31, 205
3,872
5,166
150
3,788
620
2,210
100
3,664
165
7,060
90
343
2,238
683
1,719
10
462
1,210
All other
Trade acceptances based
158
on imports
Bills payable in foreign currencies
192,114
Total...
United States Securities Bought
in Open Market
Bought outright:
14, 084
United States bonds
25,176
Treasury notes. .
Certificates of indebtedness.. 5 1,171,111
Bought with resale agreement...
18, 770
4
10,644
1, 229,141
148
75
10
!
i
j
"
"
11,569
19,133
2,236
36, 083
2,694
10,420
4,985
11, 362
8,615
3,442
1,331
1,908
5,575
42, 524 504,815
5,539
2,758
921
1,397
1,934
1, 693
65, 004 144,660
101
390
13, 568
2,992
469
958
6,423
9,544 226,657
9,134
366
880
40,911
974
1,358
26, 514
693
1,263
44,623
200
1,072
1, 539
15, 522
1,139
326
1,255
36, 769
48, 521 519,371
68,335 147,274
14,059
10,971 245,206
42,157
28,846
46, 779
19,272
38, 350
27, 050
35, 372
22,595
Exclusive of bills bought under a resale contract.
a Includes special 1-day certificates issued by the Treasury to Federal reserve banks as follows: Boston, $35,000,000; New York, $479,000,000;
Philadelphia. $58,000,000; Cleveland, $136,500,000; Richmond, $11,000,000; Atlanta, $6,000,000; Chicago, $211,500,000; St. Louis, $36,000,000; Minneapolis, $21,500,000; Kansas City, $38,000,000; Dallas, $9,000,000; and San Francisco, $28,500,000; and excludes $35,000,000 of special 1-day certificates
soldjinder repurchase agreement and subsequently repurchased.
96
FEDERAL RESERVE BULLETIN
JANUARY, 1928
WEEKLY REPORTING MEMBER BANKS
REPORTING MEMBER BANKS IN LEADING CITIES
PRINCIPAL RESOURCES AND LIABILITIES BY WEEKS
[In thousands of dollars]
Federal Reserve District
Total 1
Boston
New
Yorki
Loans and investments—
total:
• Dec. 7
21, 629,725: 1, 529,431 8, 218, 557
D e c . 14
121. 659, 259! 1,536,159 8, 214,120
D e c . 21
i21,787, 659! 1, 526, 030 8, 332, 207
D e c . 28
j21,819,635, 1,539,363:8,403,905
Loans a n d discounts—total:
15, 280, 092 1,048,057; 5,867, 370
Dec. 7 .
Dec. 14
115,293,8851 1, 054,396 5,861, 302
Dec. 21__
115,356,960 1,050,555 5,975,443
Dec. 28
115,433,348 1,057,733 6,061,300
Secured by U. S. '
Government obligationsDec. 7
132,923
53,833
10, 652
Dec. 14
124,846'
43,011
11,502;
Dec. 21
128,785
46, 358
11,3301:
Dec. 2 8 128,253
49,416
11,6211
Secured by stocks and
bondsDec. 7_6,365,161
375, 728 2,804, 688
Dec. 14
6,414,554! 374,280 2,844,324
Dec. 21
6,493,026
372,419.2,952, 016
Dec. 28
6,587,067J 379,955 3,041,210
All other loans and
discounts—
[
Dec. 7
8,782,0081 661,677 3, 008,849
Dec. 14
8,754,4851 668, 614|2,973,967
Dec. 21
8,735,149| 666,806 2,977,069
Dec. 28
8,718,028
666,157 2,970,674
Investments—total:
Dec. 71 6,349,633! 481, 374 2, 351,18'
Dec. 14
i 6,365,374
481,763i2, 352,818
Dec. 21
6,430,699
475, 47512, 356, 764
Dec. 28
1 6,386,287
481,630 2,342,605
United States Government securitiesDec. 7
2,806, 259
179, 065 1, 076,73C
Dec. 14
2,814,111
.
.
183,327 1, 089,726
Dec. 21
! 2,868,416i 178, 7051, 092, 676
Dec. 28
2,804,368j 182, 915 1,073,114
Other bonds, stocks,
and securities—
Dec. 7
3, 543,374
302,309 1,274,4fr
' Dec. 14
3, 551, 263
298, 436|l, 263, 092
3, 562, 283
296,770| 1,264,085
Dec. 21
3,581,919
298,715 1,269,491
Dec. 28
Reserve balances
with
Federal reserve bank:
Dec. 7
1,768, 918
102,992 821,192
Dec. 14
| 1,786; 084 107,986 819,83£
Dec. 21
i 1,779,706
102, 735 836,34f
Dec. 28__
I 1,813,1431 103,864 856,03*
Cash in vault
Dec. 7.
19, 240
Dec. 14
314,801
91,24:
20, 646
339,76011
Dec. 21
24,190 104,11:
317,835 i
Dec. 2 8 25,141
Net demand deposits:
!
Dec. 7
13,958,893) 961,123 6,153,13'
Dec. 14
!14,031,075 1 972,1126,189, 20Dec. 21
|13,839,523 953, 052 6,173,02<
Dec. 28
113,786,153
953,449 6,144,20c
Time deposits:
Dec. 7
6,471,859
493,335 1,542,09C
Dec. 14
6,471,491
492, 296 1, 537,357
Dec. 21
6, 503,971
492, 06011, 559, 678
Dec. 28
6, 516,079
498, 525 1, 563,665
Government deposits:
Dec. 7
5,594
653
1, 46i
Dec. 14
6,700
653
1,461
Dec. 21
16,845
191, 770
62, 75:
16,845
Dec. 28
192,020
62, 75:
Atlanta
203,808 100, 237
206, 573 098, 668
206,605 2,112,952
226, 675 ' 097,043
693,311
699,195
703, 727
706,480
626, 056 173, 290
629,704 175, 221
633, 395 150,122
634,690 ,122,734
731, 507; 391,931 638, 247!
731, 227 392, 660 644, 227j
735,490 387,194 644,610
728,177 383,073 641,853|
.,
791, 850 1 392, 418
788,819 1, 394, 271
778, 226 1, 394,838
798,055 1,379, 596
524, 636
527,482
529, 054
531, 551
501.165 294, 205
506, 055 289,608
501,620 ,259, 094
503,717 , 259,925
539,160
537,102
539,430
535,276
262, 696
263,167
256, 846
252,340
423,016'
425, £60'
423,990
418,491
4,593
5,095
4,233
4,207
2,345
2,344
2,338
2,304
3,757
3, 612!
3, 513j
3, 555!
2,725
2,759
4,523
2, 723
5,153
5,087
5,143
4,776
7,449
7,904
8, 005
7, ~
Cleveland
15,402
15,317
15, 631
16,065
3,056
3,163
3,722
3,271
St.
Louis
Chicago1
5,132
5,238
5,313
5,351
18,826
19,814
18,676
17,273
Minne- Kansas
Dallas
apolis
City
438, 286
442,804
447,875
444,310
885, 064
888, 701
907,452
891,332
339,476 296, 043
343,389 , 302,734
341,672 , 306,192
339,626 , 295,738
415, 916
414,193
411,822
430,151
603,355 163,043
163,921
615,352 163,120
602,545 165,542
118,752 1,028,883
118,416 •
' • 1,026, 596
"1,026,596
116,476 1, 000,914
115,9211,002,195!
212,767
213,038
213, 619
209,211
91, 635
92,810
89,000
85, 591
122,628
124,885!
123,733!
118,786
85, 204
86,979
84,906
85,343
342, 562
346, 752
349,649
350,617
368,485
366,722
358, 399
360,213
773, 661
770, 594
763, 85;
760/986
358,537
360,398i
362,212i
362,738|
377,281 1,246,496
382,401 1,243,198
379,831 1,239,504!
382,445 1,240,457
321,800
318,969
321,578
321,858
168, 716
168,013
165, 508
164,445
296,631
297,063
296,744J
296,150:
251,547
253,651
252,243
251,560
948,328
950,895
951,400
940,345
411,958
417, 754
428, 379
428, 620
707, 819
704, 397
718,114
717,447
168,675i
171,713;
174,673 !
174,929|
124,891
123,649
131,775
130,973
879,085
885,6131
891,0281
862,809
192,34'
194,125
196,060
192,901
129, 235
129,493
130, 348
130,733
215, 231 98,810
218,6671 99,415
220,620; 106,203
223,362j 104,684
589, 021
585,967
601, 260
595, 594
107,186'
108,197!
118,885
118,772
310,793 73, 515!
305, 774 73.847i
315,671 77,909!
312, 587 78,2631
60, 547
59,333
65,810
64,861
364,147
365,3371
366,789 :
334,502
78,116
78,152
78, 417
72,651
67,425
67,366
68,464
68,863
102,344!
102,308!
104,436
106,454
67,54'
67,862
74,119
72,414
318,844
312,882
326, 535
318,972
304,772
309,557i
309,4941
309,848;
397, 026
398,623
402,443
404,860
95,160,
97,866
96,764
64, 344
64,316
65,965
66,112
514,938
520,276:
524,239;
528,3071
114,231
115,973
117, 643!
120,250J
61,810
62,127
61,884
61,870
112,8871
116,359
116,184
116,908
31,263
31,553
32,084
32,271
270,177
273, 085
274,725
276, 622
79,453
80, 837
80,433
84,851!
138,056
134,442
123, 787
128, 526
44, 330:
44, 548;
41, 518:
44,2881
41,149
40,373
40,859
42,622
255,198
265, 546
270,770
265,156
52,077|
50,898i
49,270|
50,694
31,122
30,079
27,804
29,194
55,481
55, 822
57, 618
56, 569
33,313
33, 81
33, 35C
34, 00£
114,555
121,902
115, 217
117,336
374
406
63"
763
14,977|
15, 563;
15,986
14,916,
11,805
12, 688
12.465
12,272
51,090J
54,931
54,560|
8,177
9,417|
9,870|
8,7l6j
6,126
6,692
7,346i
6,561
12,859
13, 719
13, 578
13, 723
10, 01'
9,91'
10, 31:
10,92-
23, 480
24, 924
25, 791
25,603
783, 2021,075,919
781,922 1, 079, 204
752,995 1, 051, 386
773,5671,039,063
403,3911
403,442,
391,266,
387,812,
344,2961,895,639:
352,0501,889,285!
342,4961,860,4231
344, 564 1, 845,068'
446,726|
448,9941
430,3931
426,367
249,864
247,743
236,657
234,913
496,896
501, 684
496, 325
495, 743
309, 35£
316,02£
311,42C
309,84£
839,341
849, 407
840,081
831, 559
242,060; 244,8951,,192,036
887. 839 243,763^ 243, 86111,,199,222
880, 572 243,145! 244,058'L,209,625!
882,439 243,444 243,1391,200,026,
234,619'
234.414!
240,065!
241,016,
135,071
133,679
135,554
134,259
160,809
161,323
161,493
160,310
113,266
113, 526
114, 21
114,094
945,918
941, 608
938,987
949,122
90
90
4,092
4,092
24'
24;
10, 511
10,511
842
842
22,585
22,585
18,912
21,496
21, 536
19,832;
278,897
282, 603
284, 516
286,040
489
487
16, 607
16, 607
35,
37,
39,
36,
445
445
19. 216
19, 216
118
9621
6, 580!
6,580!
343
346
10,497
10,4961
749!
749 i
16,764!
16,764[
109!
374
3,626!
3,877i
1 For comparable figures on monthly average basis, see pp. 17-18; see also explanation of revisions on p. 8.
San
Francisco
Richmond
Philadelphia
1,6
1, 6
97
FEDERAL RESERVE BULLETIN
JANUARY, 1928
PRINCIPAL RESOURCES AND LIABILITIES
BY WEEKS—Continued
[In thousands of dollars]
Federal Reserve District
I
Total
Boston
Due from banks:
Dec. 7
Dec. 14
Dec. 2 1 —
Dec. 28
Due to banks:
Dec. 7
_—
Dec. 14
Dec. 21
Dec. 28
_.
Borrowings from Federal
reserve bank—total:
Dec. 7
Dec. 14
Dec. 21
Dec. 28
Secured by U. S. Government obligations—
Dec. 7 - Dec. 14
_
Dec. 21
Dec. 28
All o t h e r Dec. 7
Dec. 14
Dec. 21
Dec. 2 8 . . .
Number of reporting banks
Dec. 7
_Dec. 14
Dec. 21
Dec. 28
1,206,138
1,237,232
1,201,3091
1,216,900 |
58,918
55,291
62,513
57,042
New
York
Philadelphia
Atlanta
St.
Louis
Chicago
Minneapolis
Kansas
City
Dallas
San
Francisco
58,123
57,545
56,446
60,381
99,467
103,426
98,637
95,905 j
59,216!
57,967
55,433
57, 548
88,055
89,301
85,841
81,026
224,751
252,526
230,365
239, 742]
58,095
60,701
59,051
58,341
53,129
52,190
52,334
51,919
125,542
125,856
124,676
126,896
74,081
72,980
63,724
64,367
172,199
173,120
168,210
171,319
178,184
175,093
172,360
174,763
268,865!
262,497|
247,374
258, 771
137,481
133,373 [
129,443
129,131
133,637
132,489
128,133^
130,479
517,125!
485,570!
511,361
519,852
167,451
156,174
149,625
153,597
110,089
102,833
103,460
104,912
231,200
225,838
225,524
230,615
136,192
131,734
123,285
127,146
264,493
258,794
235,076
241,060
45,356
62,959
58,018
11,921
13,375
20,659
20,507
20,734,
20,347!
22,732
21,198|
39,351
61,128
48,390
41, 724
4,577
6,858,
15,149
12,127
1,250
1,300
7,436
8,603
9,333
9,082
4,853
5,235
4,160
1,900
42,892
39,254
33,213
3,520
3,973
5,442
5,572
8,249
9,199
11,125
34,589
55,739
38,939
26,804
3,220
5,895
13,635
7,920
1,250
1,300
4,405
5,571'
6,395:
7,147j
4,780
2,820
2,930
1,840
41,925
38,600
32,110
8,295
8,401
9,402:
15,217!
14,935:
12,485
11,148
11,607
13,302
4,762
5,389
9,451
14,920
1,357
963'
1,514'
4,207
3,03l!
3,032:
2,938!
1,935;
73
2,415
1,230
60
967
654
1,103
96
96
96
96
31
31
31
31
65 j
45
45
45
45
57
57
57
57
134,562
136,329
144,079
152,414
766 1, 358,546
.
166,7
1,983 1,, 359,877
.
159,"
.
155,307 1,, 347,911
.
161,196 I , 335,022
3,670,029
3, 584,2551
3,528,859
3, 566, 544
Richmond
Cleveland
304,394 !
353,308:!
432,061 jl
463,1121!
21,595
30,375
23,833
23, 797
104,446
101,398
164,103
233,946
12,751
20,129
26,230
31,825
221.393J
270,354;
313,079
328, 668
17,600
16,905
9,046
10,418
72,377
81, 294
124,565
177, 535
8,275
13,303
19,504
26, 721
22,453!
35,805
83,001!
82,954|
118,982;
134,4441
3,995
13,470
14,787
13,379
32,069
20,10,4
39,538
56,411
4,476
6,826
6,726
5,104
11,385
9,551
14,871
658:
658!
6581
657:
36
36
36
36
48, 520
I
7,r~
66
66 i
48
48
48
66
65!
651
65
REPORTING MEMBER BANKS IN FEDERAL RESERVE BANK CITIES
PRINCIPAL RESOURCES AND LIABILITIES BY WEEKS
[In thousands of dollars]
I
City
Total i
Boston
Loans and i n v e s t m e n t s total:
Dec. 7
Dec. 1 4 . . .
Dec. 2 1 . .
Dec. 2 8 . . .
Loans and discounts—total:
Dec. 7
_
Dec. 14
Dec. 21
Dec. 28
Secured by U. S. Government obligationsDec. 7
Dec. 14
Dec. 21.
Dec. 28
Secured by stocks and
bondsDec. 7
_.
Dec. 14
Dec. 21
Dec. 28..
All other loans and discountsDec. 7 . .
Dec. 14
Dec. 21
Dec. 28
New
Yorki
Philadelphia
St.
Louis
Minne-lKansas
apolis
City
Cleveland
moCnd Atlanta Chicago:
773,093
767, 061
770,286
759,527
117,130! 98,9681,988,231 447,835
117,980 ! 100,204|l,988,987 450, 391
122,361' 99,9481,969,210 453, 748
123,724! 101,424 1,956,480 447,105!
188, 676
189,822
186,182
184,581
175,653|
177,113:
177,294!
180,088;
73, 364 1, 509, 811
74,216 1, 503, 541
71, 627 1,476,101
73,43l!l,479,419
332,150'
333,210!
335,351!
331,464i
129,241
130,080
125,486
123,645
114, 581! 96,854 540, 661
115,323! 96,529 543, 303
113, 283 96,743 542,932
113,749 97,661 539,800
2,176[
2,033!
1,852!
1,837|
564
546
558
552
|l
13, 805,580 il, 035, 617 7,062, 585 1, 033,841
13, 803, 653: |1, 044,430 7,050, 007 1,035, 320
13, 892,819J1, 031,167 7,160,898 1, 032,759!
13,952,258! !l, 0 42,884 7,223,552 1,051,980:
10,148,707'
10,141,779
10,197,476!
10,286,471;
790, 36415,165,424
799, 993 5,152, 364
794,924 5, 258,221
800,807 5,334,106
692, 382 j 608,874 95,001
688,314| 609,182 95,7241
675,739! 607,500 99, 569;
694,792 595,974 101,623
1,621
1,646
1,644
1,638
126,355
126,422!
129,571
127,734
757,596
755,916
759,395
753,179
1,986
1,982
2,001
1,953
6,872
7, 326:
7,428j
7,113!
4,130
4,159
4,226
4,667
479
445,
440:
440
267, 509 2,465,404 365,789;
363,369!
264,673!2,597,315 358, 583
4,752,859 j 274176 2,675,960 375,484
274,176 2 6 7 5 9 6 0
219,070
221,128
224,888
214,589
23, 565:
23,401!
24,535
26,558
17, 637 808,419 154,235 39,144 34,446 21,270 155,086
17, 697 804,106 155,051! 40,563 33,242 21,434! 156,928
17,308 777,739 154, 777, 36,844 32, 501 21,382| 156,901
16,349 776,742 150,39o! 34, 111 31,131 21,346 156,018
319, 721 385, 674
317, 619
309,728 378,386
312,195 376,718
70,957
71,878
74, 594
74,625
54,106 687,272! 175,739 89, 533 79,174| 75,175
54,873 684,406i 176,126' 88,971 81,214 74, 673
79,823 74,938
52, 675 684,766! 178,722
81,653 75,890
55,444 690,404! 179,232
94,182
85, 386
87,189
89,292
8,760
9,612
9,418
9,710
52,104
41,319
44,644
47,719
4, 571,574
4,602,690
5,482,951
5,453,703
5,442,841
5,444,320
514,095 2, 647,916
521,430 2, 614,225
520,833 2,616,262
516,92112,610,427
14,120
15, 029
13, 596
12,273
961
867
959
965!
409
422
423
425
383,589
384,393
384,030
381,829
1 Figures not entirely comparable with those published in the BULLETIN for November and preceding months due largely to consolidation with
reporting member bank on Dec. 1, 1927, of a nonmember bank in Chicago with loans and investments of $123,000,000; see p . 8 for explanation of this and other revisions.
98
FEDERAL RESERVE BULLETIN
JANUARY, 192S
PRINCIPAL RESOURCES AND LIABILITIES BY WEEKS-Continued
[In thousands of dollars]
City
Total
Boston
Investments—total:
Dec. 7 —
Dec. 14
.Dec. 21
Dec. 2 8 . . .
United States Government securitiesDec. 7
Dec. 14
Dec. 21
Dec. 28._
--~
Other bonds, stocks, and
securities—
Dec. 7
Dec. 14
Dec. 21.
Dec. 28
Reserve balances with Federal reserve bank:
Dec. 7
Dec. 14
Dec. 21
Dec. 28
Cash in vault:
Dec. 7
Dec. 14
-.
Dec. 21
.-Dec. 28
Net demand deposits:
Dec. 7
Dec. 14
Dec. 21
Dec. 28_
_
-.
Time deposits:
Dec. 7__
Dec. 14
Dec. 21
Dec. 28
Government deposits:
Dec. 7.__
Dec. 14
Dec. 21
Dec. 28
Due from banks:
Dec. 7 - . .
._
Dec. 14
Dec. 2l.._
_
Dec. 2 8 . . .
Due to banks:
Dec. 7
Dec. 14
Dec. 21
Dec. 28
Borrowings from Federal
reserve bank—total:
Dec. 7
Dec. 14
Dec. 2 1 . . .
Dec. 28
Secured by U. S. Government obligationsDec. 7
Dec. 14
Dec. 2 1 . . .
Dec. 28
All o t h e r Dec. 7
Dec. 14
Dec. 21
Dec. 28
Number of reporting banks:
Dec. 7
Dec. 14
Dec. 21
Dec. 2 8 . . .
New
York
San
Francisco
St. Minne- Kansas
Phila- Cleve- Richdelphia land mond Atlanta Chicago Louis apolis City Dallas
164,219 22,129 25,604
157,879 22,256 25,988
162,786 22,792 28, 321
163,553 22,101 27,993
478,420
485,446
493,109
477,061
4,996
5,196
5,556
5,536
15, 292
15, 641
17,890
17,541
214,564
216, 738
220,204
199,887
44,067
44,043
44,474
39,799
95, 212
93, 814
96, 512
97,474
17,133
17, 060
17, 236
16,565
10,312
10, 347
10,431
10,452
263,856
268, 708
272,905
277,174
28,178 28,967
28, 688 29, 267
73, 923 28,962 29, 701
75,842 29,171 29,9541
6,185 91, 553
6,584 92, 099
6,997 91, 923
6,867 93,074
72,461 39,921
72,958 43, 849
73,152 38,473
75,825 40,548
8,979
8,840!
8, 241
8,1651
6,399
6,521
7,700!
6* 0351
182,904
187,930
193, 232
193,815
34, 208
32, 735
31,499
31,891
17,683
16, 521
14,642
16,433
16,889
17,487|
17,433
17,094
8, 862
9,332
8,646
9,543!
15, M6\
18,090!
17, 848j
16,554
11,302
10, 553
11,075
935!
1,064
1,149
888
1,325
1,373
1,475
1,327
21, 657
22, 254
24,925
24,862
3,936
4,804
4,850
4,225
1,811
2,063
2,015
2,038
2,668
2, 8101
2,773
2,767
9,722,120
9, 753, 000
9,639,415
9,602,875
717, 707 5, 5C2, 639 689,680
728, 580| 5, 596, 212 691,358'
710,018 5,578,195 661,695;
708,582 5,543,763 678,932:
293,702
295,838
282,772
278,388
74, 907
74,875
72,199:
73,639
1, 378|
1,3641
1,427
1,515
!
53, 970 1,324, 253
55, 991! 1,300,132
54,948:1,290,373
55,090 1,275,617
290,216
294,920
281,427
274,862;
125,287
124,444
118,655
118,915
160, 052
160,663
158,983
159,904
3, 222, 552
3, 213, 707!
3, 238, 040!
3,245,700!
265, 78811, 027,419
264,910 1,021,657
2G3,853 1, 042,459
270,1901,045,587
218,674!
218,246!
217,706!
218,904'
468,075
465,627
464,470
464,676
31, 928
31, 747
31, 635
31,962J
37, 672
37, 662;
37, 650;
37,771'
621,828
631, 088
642, 504
635,646
131,876|
131,828]
137,382
138,192
60,840
60,815
60,145
60,547
19,124
19, 085,
18,953!
18,825|
1, 352
1,352
56, 841
56, 841
464
462
15, 987
15, 987
85
85
6,327
6,327
11
11
825
825;
44
44
2,592
2,5921
474
474
9, 629!
9,629
93
2, 939
2,935
21
21
908
908
65
65
2, 869i
2,869
44,137 96, 532
38, 274 96, 915
47, 009 106,348
39, 514 110,233
52, 234
52,449
51, 669|
54,076;
21,364
23, 327
21, 696
22,890
6, 636'
6, 698
6,075
6,410
12,106i
12,472
13,146
10,983
140,378
156,412|
150,083;
154,859
i
,
1
155, 653 , 288, 603
149,897 1, 291,31"
145, 765 1 281,513
,
151,679 1.
,265,63'
171,006J
168,360
165, 651
167,156
60, 250
62,378
56, 762
59,167
39, 296
39, 647
37,329
34,274
18, 575
19,489
18, 775
18,916
8, 704
7,150
11,306
6,44
3,168
3,836
6,275
6,461
3, 656,873
3,661,874
3, 695, 343
3,665,787
>
,
245,, 253 1, 897,161
,897,643
244, 437 1,
i,
236, 243 1, 902, 677
242,077 1, 889,446
1,741, 549
1, 749, 230
1,774,197
1,728,065
109, 228
112,973
108, 209
112,482
982,243 90,092
992, 088 91,086
994,184 100,991
974,245 100,835
69,007
64, 065
66, 274
66,079
1,915,324
1,912, 644
1,921,146
1,937,722
136,025
131,464
128, 034
129,595
914,918
905, 555
908,493
915,201
1, 267,419
1, 280, 278
1, 293, 204
1,310,138
80, 282
82. 074
79,480
79,187
756,480
756, 618
777,375
786,284
8,466
9, 254
11, 83f
12,424
63, 052
74, 201
85,103
71,252
136, 650
154,868
170,108
155,625
4, 094
4,097
137, 773
137,769,
!
549,340
564, 789
580, 240!
578,394
i
2, 523, 744!
2,485, 5081
2,461, 289!
2,465,681
631
631
16,170
16,170
341,459
347,006
357,020
357,188
251,367
255,920
256,029
256,353
191,123|
217, 809
268, 626
307, 775
19,903 84, 64!
27, 400 79,189
21, 751 140, 273
21,572 203,288
9, 021
15, 349]
23, 720
29, 565
138, 404
165, 858!
188,049 ;
210, 522;
16,125 53,771
13, 930 62, 205
7,288 103, 280
8,393 148,350
4,625
800
8, 603 2,425J
17, 0541 1,900
24,471 3,249
4, 396
7, 904
6,746 4, 725
6, 666' 9,406
5,094 3,192
52, 719]
51,9511
80, 577
97,253!
3,778
13,470
14,463
13,179
30, 874
16,984
36, 993
54,938
218;
2181
218
217
17
1'
17
1'
52
52
52
51
115, 685 59,435
117,181 59,742
118,397 60, 696
115,641 60,936
61, 072
61,790
64,011
66,339
29, 501
29,893
32,828
30,073
216,935
212, 613
216,463
213,379
31, 257
31,054
31,734
31,765
32,105
32, 523
34,310
36,385
23,316
23, 309
25,831
23,206
125. 382
120, 514
124,540
120,305
71,618
73,138
42,351
45,413
42, 351
45,318
5, 977
6, 289 •
6,158
6,698
90,902:! 338,811
90, 334 339,653
88,362 341,788
90,050 345,133
19,511
19,613!
19,807;
19,763
319,817
311,429
301,476
303,637
32,639
30, 923
34, 621
34,247
143;
143'
6, 300>
6,300;
!
17,844 36,158 18,589
;
;
20, 689 35,310 21, 208
22, 375 36, 722 18, 625!
21,049! 35,806( 19,050
716
716
16, 386
16,386
M
70, 723
70,112
71, 871
69,277
374, 721
356, 091
371, 689
377,583
91,381
85,423!
84,027
84,704
61,720
56,699
57,128
57,891
88,185! 39, 520
87,095: 38,463!
87, 560, 36,399
89,450 38,276'
134,834
130, 649
118, 691
120, 948
2,900
2, 200J
3,000
13,482
31,514
17, 680
21,780
450
1, 820;
5,110
5,375
1, 250
1, 000
2,900
2, 2001
2,654
346
. H
.
.
4,083
4,979!
4, 924!
6,313|
3, 650
4, 550;
3,120:
400;
12,7
30, 025
15, 589
13,150
2,500
3,250
3,200'
3, 650 40, 800
2,200! 38,300
1,950 30,100
6,300
703
1,
2,091
1,583
1,729
1,724
1,411
13
13
13;
13
2,350
1,170
400
7
7!
41,113
38, 572
30,467
6,580
313
272
367
280
10
10
10
10
99
FEDERAL RESERVE BULLETIN
JANUARY, 1928
ALL MEMBER BANKS—DEPOSITS, BY SIZE OF CITY, DECEMBER 7, 1927
[In thousands of dollars]
Time deposits
Net demand deposits
Federal reserve district or
State
In places having a population o—
f
In places having a population o—
f
Total
Less than
5,000
1,749,647
United States
5,000 to
15,000
Less than
15,000 to 100,000 and
100,000
5,000
5,000 to
15,000
15,000 t o
100,000
1,184, 590 2,413, 570 14,238,463 19,586,270 1,900, 550 1,281,989 2,456,006
100,000 a n d
Total
7,038,119
12,676,664
590,502
1, 721,742
328, 701
929, 291
174,434
151,265
1, 242,919
284,072
108,819
92,765
79,604
1,334,005
973,136
2,827, 823
1, 034, 759
1, 545, 596
592, 229
465, 326
2,132,438
520, 033
448, 714
344,765
186,104
1,605,741
DISTRICT
Boston
New York
Philadelphia
Cleveland.
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
--.
51,952
218, 380
147, 580
141,493
102, 919
85,382
180, 785
107, 049
.108,861
215,686
223, 791
165,769
82,136
131,176
76,332
128,445
75,167
75, 057
131,818
73, 628
86,902
126,347
110, 636
86,946
217, 740
335,443
159,950
201,106
185,128
210, 754
398,842
101, 351
84,993
232,476
136,331
149,456
1,115, 846
6,440, 739
840,680
1, 097,145
299,586
251,241
1, 896,455
498,919
199,807
316,458
258,455
1,023,132
1, 467, 674
7,125, 738
1,224, 542
1,568,189
662,800
622,434
2, 607, 900
780,947
890, 967
729, 213
1,425,303
71,894
387, 595
287,840
212, 753
151, 565
63,478
256, 795
91,241
150,920
95, 638
18,668
112,163
94, 788
196,960
145,944
165,247
100,403
68,048
187, 564
58,346
109,322
63,265
29,963
62,139
215,952
521, 526
272, 274
238,305
165,827
182, 535
445,160
86,374
79,653
93, 097
57,869
97,434
35,266
6,176
17,464
7,430
7
8,498
27,414
6,267
18,433
33,753
8,921
47,463
7,788
1,898
121,293
6,336
42,361
383, 762
180,418
39,985
110,143
20,231
37, 795
546, 238
186,761
99, 765
STATE
New England:
Maine
New Hampshire
Vermont
Massachusetts
Rhode Island
Connecticut
Middle Atlantic:
New York.
New j'ersey
--.
Pennsylvania
East North Central:
Ohio
-Indiana
--Illinois
Michigan
Wisconsin
West North Central:
Minnesota
Iowa__
Missouri
North Dakota
South Dakota
Nebraska
Kansas
South Atlantic:
Delaware
Maryland
District of Columbia.
Virginia
West Virginia
North Carolina
South Carolina
Georgia
Florida
East South Central:
Kentucky
Tennessee
Alabama
Mississippi
West South Central:
Arkansas
Louisiana
Oklahoma...
Texas
Mountain:
Montana
Idaho
Wyoming
Colorado
_..
New Mexico..
Arizona
Utah
Nevada
Pacific:
Washington
Oregon
California-
11,901
9,441
7,676
13,911
1,198
10,630
7,158 i 27,271
13,772
19,471
9,441 I
2,695
38,779
124,832
3,738
12,986
49,974
46,330
42,684
I
19,812
895,826 I 1,073,348
128,323
133,259
107,096
•"" " "
"
I
158, 778
86,316
170,652
64, 831
86,761
112, 805
202, 830 6,132,808
141,194
347,465
218,119 1,213, 585
6,559,247
661,736
1,715,161
287,022
132,961
356,147
123,059
97,685
226,405
318, 758
211,424
364,138
1,476,702
273,302
454, 719
2,205, 541
715,372
1, 401,409
60,909
33, 583
89, 598
31, 717
22,465
60,177
31,968
59,489
40, 728
21,829
94,754
636, 520
93, 622
62,431
151,106 1, 347, 853
85, 722
341, 390
57, 669
113, 672
852,360
221, 604
1, 648, 046
499, 557
215, 635
76,367
29, 660
93, 350
87,189
50, 411
53,175
25, 648
69, 642
95,978
41,459
100,355
92, 524
115,210
147, 399
G9,113
756,944
23, 984
649,128
487,497
72, 877
986, 841
171, 816
927, 330
818,063
233, 860
37,83L
55, 251
23,732
23, 257
19,991
28, 078
49, 938
26, 086
21, 358
16, 502
11,057 I
12,191 |
12,764 !
36,418 |
300, 353
172, 403
602,810
40, 533
38, 673
117,089
142,175
74, 896
65,082
16, 282
25, 080
17, 598
25,809
23,404
34,818
25, 355
9, 990
9,823
9,157
8,380
16,914
31,254
82, 248
15,024
5,981
2,187
4,080
14, 557
108,819
9,433
223, 908
249, 787
182,118
265, 264
40, 884
28, 942
52,009
57,802
36, 381
142, 938
81,151
185, 048
96, 944
122, 991
47,932
133, 288
118, 234
9,662
40,195
17, 639
12,164
51, 277
35, G80
18, 991
11,179
11,054
16, 111
24,661
12, 027
28, 447
17, 947
13, 339
15, 541
41, 562
43,975
42,177
37, 455
38,353
72, 314
36, 589
64, 685
31, 534
6,219
6,491
14,293
48, 758
199, 807
31,109
531, 042
61,954
7,061
3,594
17,486
6,624
3,705
29, 575
33, 537
18, 370
8,019
19, 025
21, 647
16, 065
10, 926
30, 278
11,629
13, 765
18,916
36, 096
52,481
74, 343
28, 284
45,448
77,671
35, 390
18, 811
25, 764
5,178
19, 435
24, 812
36,488
37,989
14,247
82,497
69,939
47,732
162,134
135,399
123,166
39,955
30, 300
20,562
14,411
3,049
12, 761
7,585
12, 233
17,068
22, 498
39,136
21,541
14,300
50, 270
52,070
26, 680
38,346
23,955
126,149
112, 659
123,611
76,578
166,677
259,021
678,565
15, 680
4,024
22,005
14,605
6,888
7,758
26,401
9,064
52,250
45,989
58,450
15,114
25,867
66, 529
36,975
23,928
149,879
24,915
24,130
58,659
9,143
9,402
7,201
5,276
16,840
1,875
2,012
6,653
4,789
17,956
6,488
9,575
11,012
2,082
2,074
4,151
2,544
22,429
7,965 |
10,049
2,700
8,464
1,685
57,063
192,868
127,464
981,877
26, 990
19,330
45, 298
9,004
16,015
23,937
24,129
1,480
56,535
76,984
64,597
1,174,826
10,161
11, 681
20,530
32,787
115, 123
81,151
103, 312
55, 050
24,500
6,371
92,274
208,209
40, 598
99,242
17, 917
15,456
8,848
31,970
10,210
3,630
8,181
4,486
22,483
11,600
15,080
14,987
8,800
2,872
4,959
4,657
26,129
9,919
15,190
5,905
17,628
5,716
87, 732
31,831
37,022
65,453
16,379
21, 629
27,722
28,121
2,726
87,997
116, 537
66,087
800,705
13,732
12,740
258,455
39,803
For back figures see BULLETIN for December, 1927, pages 873 and 886-925.
13, 740
2, 927
4,404
80,142
41,216
53, 076
42, 934
79,604
17,598
14, 066
150,140
41,216
170, 576
91, 682
89, 615
66, 581
105, 680
103,966
115,829
119,353
74,865
34,417
48,969
79, 296
89,369
166,065
49,787
21,654
14,851
94,964
6,657
12,550
30,087
7,333
137,107
101,422
1,300, 596
100
FEDERAL RESERVE BULLETIN
JANUARY, 1928
BROKERS' LOANS
LOANS TO BROKERS AND DEALERS, SECURED BY STOCKS AND BONDS, MADE BY REPORTING MEMBER BANKS IN NEW
YORK CITY
[In thousands of dollars]
Demand and time loans
|
Demand loans
Total
Dec.
Dec.
Dec.
Dec.
7
14
21
28
For own
account
For
account
of outof-town
banks
For
account
of others
Total
3,562,805
3,558,355
3,644,331
3,717,622
1,220,398
1,230,124
1,302,333
1,373,536
1,366,278
1,374,106
1,337,183
1,338,291
976,129
954,125
1,004,815
1,005,795
2,735,343
2,729,454
2,799,974
2,864,107
For
account
of outof-town
banks
For
account
of others
Total
998,625
1,004,555
962, 524
959,575
837,199
824,142
875, 377
875,042
827,462
828,901
844,357
853,515
For own
account
!| 899,519
1 900,757
I 962,073
Hi, 029,490
Time loans
For
For
For own account account
of outaccount of-town of others
banks
320,879
329,367
340,260
344,046
367,653
369, 551
374, 659
378, 716
138,930
129,983
129,438
130,753
BROKERS' BORROWINGS ON COLLATERAL, IN NEW YORK CITY, REPORTED BY THE NEW YORK STOCK EXCHANGE
[Net borrowings. In thousands of dollars]
Borrowings from—
Total
New York banks and trust com- Private banks, brokers, foreign
banking agencies, etc.
panies
Date
Total
On demand On time
Total
1926—Dec. 31
1927—Jan. 31._
Feb. 28
Mar. 31_
Apr. 30
May 31.
June 30
July 30
Aug. 31.
Sept. 30
Oct. 31
Nov. 30
Dec. 31.
3,292,860
3,138,786
3,256,459
3,289,781
3,341,210
3,457,869
3,568,967
3,641, 695
3,914,628
3,946,137
1 4,091,836
2,541,682
2,328,340
2,475,498
2, 504, 688
2, 541,306
2, 673,993
2, 756, 969
2,764,511
2,745, 571
3,017, 675
3,023,238
3,134,027
751,178
810,446
780,961
785,093
799,904
783,876
811, 998
877,184
928,320
896,953
957,809
! On demand On time
2,803,585
2,670,144
2,757, 385
2, 790,080
2,864,957
2,967, 546
3,064, 975
3,144,977
3,169,786
3,339, 649
3,363,010
3, 519,121
2,127,996
1,963, 554
2,084, 852
2, 111, 565
2,146,447
2,254,153
2,316, 440
2,343,316
2,330,261
2,538,526
2, 548,572
2, 674, 722
Total
675, 589
706,590
672, 533
678, 515
718,510
713,393
748,535
801, 661
839,525
801,123
814,438
844, 399
489,275
468, 642
499,074
499,701
476,253
490, 323
503,992
496,718
504,105
574,979
583,127
572, 715
On demand
413, 686
364, 786
390,646
393,123
394,859
419,840
440, 529
421,195
415,310
479,148
474,666
459,305
On time
75,589
103,856
108,428
106,578
81, 394
70,483
63,463
75,523
88,795
95,831
108,461
113,410
COMMERCIAL PAPER OUTSTANDING1
[In thousands of dollars]
E n d of—
January...
February..
March
April
May
June
July
August
September
October...
November.
December.
922
704,567
717,894
760,315
792,045
790, 558
795,443
805,030
807,166
804, 615
774,755
747,938
721,688
1923
806,803
838,041
863,845
867,031
887,644
885,216
854,156
830, 743
802,676
815,263
799,223
763,493
1924
817,880
866,551
889, 053
870,956
851, 551
863, 684
879, 060
910,530
914,687
925,379
888,256
797, 605
1925
819,868
819,746
812,690
801,262
775,517
759, 091
727,199
721,817
708,374
683, 903
665,953
621,312
» Paper maturing within 7 months. Figures reported by 26 dealers to the Federal Reserve Bank of New York.
1926
654,171
654,943
668,000
662,852
668,226
652,432
654,944
638,110
612,058
593,288
566,194
525, 952
1927
550,918
577,047
605,415
598, 764
581,829
579, 323
568,618
591,158
599, 673
610,945
603,145
101
FEDERAL RESERVE BULLETIN
JANUARY, 1928
BANKERS' ACCEPTANCES OUTSTANDING
[In thousands of dollars]
All reporting banks 1
Banks in New York City
End o—
f
1925
January...
February..
March
April
May
June
July
August
September.
October
November.
December.
1
834,825
800,137
757,074
680,346
607,942
569,386
555.167
607,025
674.168
689,768
773,736
1926
1927
1926
1925
788,254 773,604
767,127 785,488
745, 660 809,446
720, 611 810,966
685, 333 774,720
621,949 751,270
600,487 741,258
582, 635 782,055
614,151 863, 823
681, 647 975,167
726,395 1,029,490
755,360
588,501
562,405
560,007
544,603
499,509
451,844
425, 725
404,247
447,387
502,810
507,592
1927
574,042
559,731
543,502
524, 608
506,012
461,508
440,797
420,545
442,999
500,186
532,166
560,964
567,554
574,202
598,536
604,052
579,698
561,274
555,262
573,019
632.139
714, 098
752, 763
Banks outside New York
City
1925
246,324
245,954
240,130
212,471
180,837
156,098
143, 661
150,920
159,638
171,358
182,176
193,900
1926
214,212
207,396
202,158
196,003
179,321
160,441
159, 690
162,090
171,152
181,461
194,229
194,396
1927
206,050
211,286
210,910
206,914
195,022
189,996
185,996
209,036
231, 684
261,069
276,728
Figures collected and compiled by American Acceptance Council.
LAND BANKS AND INTERMEDIATE CREDIT BANKS
LOANS OF FEDERAL AND JOINT-STOCK LAND BANKS
[In thousands of dollarsl
LOANS OF INTERMEDIATE CREDIT BANKS
[In thousands of dollars]
Net amount of loans outstanding
Federal | Joint-stock
land banks ! land banks
(12 banks) (54 banks)
Date
Jan. 31..
1926
1,566,844
1, 587,030
1, 606, 818
1,620, 214
1,632,413
1,644,105
1, 653,902
1, 664,130
1, 671,856
1, 682, 273
1,692,826
1, 710,295
Feb. 2 8 . .
Mar. 31__
Apr. 3 0 . .
May 31..
J u n e 30..
July 3 1 . .
Aug. 3 1 . .
Sept. 30.
Oct. 3 1 . .
Nov. 30..
Dec. 3 1 . .
1927
J a n . 31
Feb. 28
Mar. 3 1 . .
Apr. 30
M a y 31
J u n e 30
J u l y 31
Aug. 3 1 _ . . .
Sept. 30
Oct. 31
Nov. 30
_
_
_
_
_
;
!
J
__•
i
1,724,821
1,745,404
1,765,365
1,732,395
1,741,275
1,738,165
1,742,575
1, 749, 393
1,752,665
1, 757,185
1,758,834
1.011,088
1,019, 486
1,027,361
1,033,045
1,038, 385
1,043, 955
1.048,184
1. 053. 336
1,057,217
1,063, 056
1,068,596 .
1,077,819 I
j
1,085,170 i
1,097,642 i
1,109, 354 I
1,117, 914 !
1,124,055 I
1,130, 648
1,134,896 !
1,139, 502
1,143,130
1,147,135
1,150, 943
555, 756
567, 544
579, 457
587,169
594,028
600,150
605, 718
610, 794
614, 639
619, 217
624. 230
632', 476
639, 651
647, 762
656,011
614, 481
617, 220
607, 517
607, 679
609, 891
609, 535
610,050
C07,891
1926
1927
Class of loan
Dec. 3 Dec.10 Dec. 17 Dec. 24 Dec. 31 Dec. 31
Direct loans outstanding
onCotton
13,818 13,976 14,176 14,906 14,944 25,676
4,741 4,639 4,539 4,382 4,299 13, 747
Tobacco
3,501
2,532 2,542 2,527 2,537 2,537
Wheat
Canned fruits and
1,142
1,176
1,217
1,464
1,266
1,250
vegetables
4,700
5,400 5,700 5,850 5,8oO 5,950
Rasins
977
411
534
562
553
Wool
458
2,413
Rice
._. 1,619 1,760 1,879 1,935 1.815
227
893
739
905
912
All other
766
Total
30, 677 31,186 31,634 32,149 31,991
52,705
Rediscounts outstanding
for—
Agricultural credit cor23, 089 22, 957 22,721 22,604 22,520 23,864
porations
National banks.
State banks
Livestock loan companies
118,660 19,394 20,305
Savings banks and
trust companies
Total
41,942 142,541 43.207 43,436 43,924 I 39,757
PAR COLLECTION SYSTEM x
BANK DEBITS
DEBITS TO INDIVIDUAL ACCOUNTS BY FEDERAL RESERVE
DISTRICTS
MEMBERSHIP
BY FEDERAL RESERVE DISTRICTS
[Number of banks at end of November]
[In thousands of dollars]
Nonmember banks
Number November,
1927
of centers
New York City
Outside New York City
Federal reserve district:
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis.
Kansas City
Dallas
San Francisco
Total
1
1
140
33,281,668
23,808, 741
11
7
10
13
7
15
21
5
9
15
10
18
3,019,481
34,098,534
2,265,642
2,464,748
796, 815
1,126,168
5, 729,394
1,294,180
858,626
1,287, 696
710,014
3,439,111
141
57,090,409
2,666,956
26,555,199
2,108,355
2,386,738
732,881
1,100, 578
5,226,833
1,229,843
712,588
1,239,058
647,026
2, 777,562
47,383, 617
Federal reserve
district
Member banks |
1927
25,790,318
21, 593,299
United States
Incorporated banks other than mutual-savings banks.
November,
1926
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis. .
Kansas City—
Dallas
San Francisco.
! 1926
9,067
9,301
413
935
779
837
568
464
1,291
596
741
971
805
667
416
911
769
856
584
481
1,342
617
771
999
833
722
On par list
Not on par list
102
FEDERAL RESERVE BULLETIN
JANUARY,
1928
CONDITION OF ALL BANKS IN THE UNITED STATES
TABLE 1.—ALL BANKS IN THE UNITED STATES—PRINCIPAL RESOURCES AND LIABILITIES ON CALL DATES, BY FEDERAL
RESERVE DISTRICTS, 1923-1927
[In millions of dollars. Figures are for dates indicated or dates nearest thereto for which figures are available]
Federal Reserve District
Call date
Loans a n d investments:
1923—Dec. 31
1924—Mar. 31
June 30
_
Oct. 10
Dec. 31
1925—Apr. 6
June 3 0 . . .
Sept. 28
Dec. 31
1926—Apr. 12
June 30
Dec. 3 1 .
1927—Mar. 23
June 30
_
Oct. 10
Loans:
1923—Dec. 3 1 . . . .
1924—Mar. 31
June 30
Oct. 10
Dec. 31
1925—Apr. 6
June 30
Sept. 28
Dec. 31
1926—Apr. 12
June 30
Dec. 31
1927—Mar. 23
June 30
Oct. 10
_
Investments:
1923—Dec. 31
1924—Mar. 31
June 30
Oct. 10
Dec. 3 1 .
1925—Apr. 6.
June 30
Sept. 28.
Dec. 31
_
1926—Apr. 12
June 30
Dec. 31
1927—Mar. 23
June 30
Oct. 10.
Deposits (exclusive of bank deposits):
1923—Dec. 31
1924—Mar. 31
V"
June 30
Oct. 10
Dec. 31
1925—Apr. 6
June 3 0 . . .
Sept. 28
Dec. 3 1 . . . .
1926—Apr. 12
June 30
Dec. 31
1927—Mar. 23
"~_
June 30
Oct. 10
Rediscounts and bills payable:
1923—Dec. 31
1924—Mar. 31
June 30
Oct. 10
" '
Dec. 3 1 . . . .
1925—Apr. 6
_
June 30
Sept. 28
Dec. 31
1926—Apr. 12
June 30
Dec. 31
1927—Mar. 23
June 30
Oct. 10__
Total
New-
Phila- Cleve- RichSan
St.
delA tlanta Chicago Louis Minne Kansas Dallas Franapolis City
phia land mond
cisco
Boston
York
44,254
44,622
45,299
46,588
47,464
48,150
49,014
50,019
50,919
51,081
51, 769
52,272
52,667
53, 934
54, 652
5,021
5,031
5,147
5,302
5,323
5,476
5,541
5,664
5,738
5,788
5,970
6,003
6,220
6,351
12,442
12,631
13,237
13,729
14,205
14,038
14,521
14,669
15,144
14,993
15,533
15,910
16, t)64
16,851
16, 985
3,228
3,284
3,336
3,452
3,513
3,630
3,654
3,759
3,815
3,903
3,923
4,038
4,090
4,120
4,206
3,927
4,010
4,062
4,173
4,177
4,278
4,322
4,409
4,374
4,472
4,493
4,487
4,601
4,640
4,704
2,230
2,246
2,242
2,272
2,281
2,320
2,337
2,380
2,399
2,410
2,402
2,398
2,385
2,424
2,466
1,497
1,493
1,457
1,477
1,536
1,652
1,700
1,889
2,002
1,995
1,850
1,792
1,749
1,729
1,745
6,200
6,271
6,328
6,539
6,572
6,723
6,846
6,936
7,011
7,062
7,189
7,183
7,241
7,415
7,486
1,913
1,899
1,883
1,908
1,940
1,951
1,986
2,044
2,069
2,074
2,086
2,060
2,066
2,071
2,087
1,605
1,552
1,488
1,530
1,564
1,574
1,571
1,586
1,567
1,565
1,549
1,495
1,496
1,485
1,519
1,827
1,773
1,739
1,744
1,784
1,819
1,824
1,846
1,849
1,840
1,848
1,828
1,838
1,832
1,856
1,018
1,010
963
997
1,018
1,044
1,016
1,049
1,071
1,063
1,044
1,030
1,075
1,064
1,123
3,346
3,422
3,417
3,465
3,551
3,645
3,696
3,788
3,880
3,916
3,944
4,081
4,059
4,083
4,124
30,646
30, 978
31,218
31,832
32,339
32,856
33,657
34, 621
35, 533
35, 530
35,965
36, 599
36, 304
37,131
37, 616
3,146
3,155
3,227
3,347
3,371
3,487
3,548
3, 666
3,716
3,700
3, 796
3,847
3,834
3,951
4,029
8,040
8,229
8,540
8,768
9,119
9,051
9,479
9,682
10, 251
10,110
10,478
10,976
10, 928
11,546
11, 731
1,881
1,933
1,940
2,020
2,043
2,142
2,159
2,264
2,368
2,445
2,438
2, 551
2,523
2, 509
2,573
2,622
2, 668
2,680
2,714
2,729
2,828
2,879
2, 964
2, Q63
3,043
3,043
3,074
3,094
3.104
3,137
1,715
1,734
1,742
1,751
1,748
1,779
1,804
1,850
1,866
1, 873
1,866
1,868
1,829
1,842
1, 857
1,244
1,243
1,221
1,237
1,284
1,373
1,413
1,565
1, 652
1,638
1,519
1,462
1,404
1, 3^6
1,384
4,471
4, 522
4,519
4, 593
4,600
4,690
4,822
4, 890
4,949
4,979
5, 063
5,102
5,043
5,174
5,211
1,464
1,461
1,456
1,485
1,476
1,479
1,495
1,549
1,564
1,567
1,575
1.543
1,5181,517
1,527
1,258
1,201
1,142
1,145
1,132
1,108
1,099
1,104
1,070
1,051
1,031
987
960
948
968
1,496
1,457
1,423
1,407
1,421
1,430
1,429
1,440
1,432
1,411
1,417
1,374
1,372
1,355
1,359
833
801
829
847
852
837
865
875
867
855
841
866
853
895
2,478
2,542
2,527
2, 536
2,569
2,637
2,693
2,752
2,827
2,846
2,884
2, 974
2,933
2,956
2,945
13, 608 1,875
1,876
13, 644
1,920
14,081
1,955
14, 756
15,125
1, 952
15,294
1,989
15, 357 1,993
1,998
15, 398
15,386 I 2,022
2,088
15, 551
15, 804 2,112
15, 672 2,123
16, 363 2,169
16, 803 2, 269
2,322
17,036
4,402
4,402
4,697
4,961
5,086
4,987
5,042
4,987
4,893
4,883
5,055
4,934
5,136
5,305
5,254
1,347
1,351
1,396
1,432
1,470
1,488
1,495
1,465
1,447
1,458
1,485
1,487
1,567
1,611
1,633
1,305
1,342
1,382
1,459
1,448
1,450
1,443
1,445
1,411
1,429
1,450
1,413
1,507
1, 536
1,567
253
250
236
240
252
279
287
324
350
357
331
330
345
'353
361
1,729
1,749
1,809
1,946
1,972
2,033
2,024
2, 046
2,062
2,083
2,126
2,081
2,198
2,241
2,275
449
438
427
423
464
472
491
495
505
507
511
517
548
554
560
347
351
346
385
432
466
472
482
497
514
518
508
536
537
551
331
316
316
337
363
389
395
406
417
429
431
454
466
477
497
187
177
162
168
171
192
179
184
196
196
189
189
209
211
228
890
929
982
1,008
1,003
1,036
1,053
1,070
1,060
1,107
1,126
1,127
1,179
11,971
12, 023
12.970
12, 818
13, 547
13,169
14,334
2,898
2,887
2,971
3,066
3,166
3, 222
3,278
3,318
3,450
3,445
3,479
3,602
3,587
3,645
3,713
3, 662
3,728
3,808
3,870
3,855
3,962
4,042
4,087
4, 078
4,121
4,226
4,145
4,281
4,325
4,370
2,041
1, 992
1, 982
2,030
2,103
2,093
2,083
2,127
2,217
2,174
2,170
2,222
2,194
2,244
2,300
1,410
1, 398
1,363
1,416
1,553
1,670
1,704
1,917
2,107
2,009
1,805
1,741
1,687
1,674
1,695
5,951
5,950
6,119
6,254
6,446
6,486
6,737
6,747
6,855
6,844
7,005
6,970
6,906
7,167
7,246
1,737
1,707
1,720
1, 763
1,873
1, 865
1,904
1,950
2,031
1,989
1,985
1,965
1,979
1,970
1,990
1,538
1,507
1,481
1,548
1,596
1,602
1,602
1, 626
1,622
1,603
1,576
1,526
1,504
1,507
1,571
1,765
1,725
1,732
1,809
1,901
1,902
1,922
1,935
1,950
1,918
1,920
1,924
1,916
1,916
1,940
1,059
961
917
1,019
1,075
1,078
1,006
1,033
1,099
1,056
1,008
1,053
1,069
1,049
1,140
3,424
3,403
3,439
3,566
3,666
3,680
3,745
3,801
3,993
3,947
3,971
4,115
4,000
4,072
4,105
79
64
49
45
81
66
71
92
103
91
84
120
70
69
63
92
106
111
97
80
86
119
119
89
90
105
73
56
67
60
96
84
80
71
49
46
57
69
52
76
175
133
106
81
96
121
119
106
155
141
153
182
133
131
17
23
36
23
10
7
20
22
9
19
37
15
13
19
13
60
71
46
27
26
40
53
70
40
58
53
43
70
54
42,143
41, 958
43,369
44,162
45,813
45, 837
47, 575
47, 968
49, 202
48, 713
49, 695
50,009
49, 777
51, 612
52,084
4,687
4,677
4,867
5,003
5,032
5,108
5,218
5,286
5,402
5,427
5,579
5,593
5,583
5,810
5,939
14,141
14, 398
14,180
14.971
15,153
15, 071
16, 233
16,075
1,223
965
787
663
747
812
920
1,064
1,104
980
1,010
1,084
805
816
800
110
70
36
30
81
79
80
71
104
56
73
91
47
70
45
235
150
95
111
176
235
220
313
357
242
207
253
176
136
245
97
79
54
40
80
85
95
104
98
111
83
93
58
515
512
500
521
533
541
533
530
533
537
536
530
556
582
609
77
58
59
43
28
23
26
25
20
18
20
19
17
18
13
103
FEDERAL RESERVE BULLETIN
JANUARY, 1928
TABLE 2.—MEMBER BANKS—PRINCIPAL RESOURCES AND LIABILITIES ON CALL DATES, DEC. 31, 1923, TO OCT. 10, 1927
[In millions of dollars]
Federal Reserve District
Call date
Total
New
York
Boston
Loans and investments:
1923—Dec. 31
1924—Mar. 31
June 30
Oct. 10
D e c 31
1925-Apr. 6
June 3 0 . . .
_.
Sept. 28.._
_
Dec. 3 1 . . .
1926—Apr. 12
June 30
__
Dec. 31
1927—Mar. 23
June 30
__
Oct. 10
Loans:
1923—Dec. 3 1 . .
1924—Mar. 31
June 30
_
Oct. 10
_.
Dec. 31
1925—Apr. 6 - . . .
June 30.._
Sept. 28_.
Dec. 31
1926—Apr. 12
June 30
Dec. 3 1 .
1927—Mar. 23
June 30
Oct. 10.
Investments:
1923—Dec. 31.
_.
1924—Mar. 31
June 30
Oct. 10
Dec. 31
__..
1925—Apr. 6
June 30
Sept. 28
Doc. 31
1926—Apr. 12
.
June 30
Dec. 31.
1927—Mar. 23
June 30
Oct. 10.
Deposits (exclusive of bank deposits):
1923—Dec. 3 1 . . _
1924—Mar. 3 1 . . .
June 3 0 . . .
Oct. 1 0 . . .
Dec. 31
1925—Apr. 6 . .
June 30
Sept. 28
Dec. 31
1926—Apr. 12
June 30
Dec. 31
1927—Mar. 23
June 30
Oct. 10
Rediscounts and bills payable:
1923—Dec. 31
_
1924—Mar. 31
June 30
Oct. 10
Dec. 31
1925—Apr. 6
June 30
Sept. 28
Dec. 31
1926—Apr. 12
June 30
Dec. 31
1927—Mar. 23
June 30
Oct. 10
Phila- Clevedelphia land
RichSt.
Minne- Kansas
Atlanta )hicago
Dallas
mond
apolis
City
Louis
890
881
862
862
851
882
1,098
1,059
1,040
1,059
1,081
1,117
1,116
1,137
1,133
1,139
1,157
1,136
1,160
1,154
1,168
812
777
733
767
791
814
792
823
833
833
808
808
842
831
877
2,252
2,322
2,300
2,361
2,449
2,513
2,548
2,613
2,677
2,684
2,6952,855
2,9462,967
2,998
854
856
844
874
885
892
878
930
951
972
952
948
934
931
949
656
640
611
629
631
612
597
600
586
576
568
554
541
531
553
849
823
800
795
801
812
805
817
805
794
811
777
787
776
776
650
629
597
625
646
651
638
664
668
668
650
652
669
654
1, 686
1,740
1,722
1,731
1,769
1,818
1,84$
1,890
1,943
1,944
1,959
2,079
2,126
2,141
2,134
334
325
318
313
341
357
352
353
361
363
368
366
398
406
410
208
214
214
238
276
295
291
296
307
314
313
308
321
320
329
249
236
240
264
280
305
311
320
328
345
316
359
373
378
392
162
148
136
142
145
163
154
159
165
165
158
156
173
177
188
566
582
578
630
680
695
699
723
734
740
736
776
820
826
864
26,738
26,832
27,262
28,451
29,027
29, 285
29,702
30,369
31,199
31,070
31,391
31,896
32,154
32,967
33,451
2,049
2,026
2,060
2,172
2,172
2,207
2,252
2,325
2,395
2,391
2,426
2,458
2,460
2,557
2,621
7,656
7,693
8,121
8,554
8,849
8,638
8,869
8,957
9,516
9,213
9,477
9,849
9,743
10, 284
10,341
1,973
1,994
2,033
2,139
2,170
2,232
2,251
2,312
2,341
2,412
2,423
2,482
2, 520
2,536
2,742
2,799
2,839
2, 941
2,934
3,007
3,033
3,098
3,061
3,131
3,167
3,139
3,243
3,274
3,333
1,210
1,217
1,198
1,220
1,228
1,250
1,256
1,281
1,297
1,298
1,282
1,278
1,290
1,312
1,361
985
970
937
957
1,000
1,061
1,085
1,201
1,250
1,241
1,173
1,163
1,159
1,144
1,161
3,909
3,940
4,014
4,227
4,220
4,290
4,382
4,443
4,491
4,503
4,582
4, 552
4, 597
4,720
4,757
1,188
1,181
1,162
1,187
1,226
1,249
1,230
1,283
1,312
1,335
1,320
1,314
1,332
1,337
1,359
864
854
825
867
907
907
19,052
19,176
19,264
19,820
20,182
20,390
20,814
21,450
22, 275
22,006
22, 267
22,906
22, 532
23,149
23,492
1,471
5,225
1,458
5,278
1,450
5,452
5,625
1,536
1, 542 5,901
1,580
5,771
1,620
5,970
1,690
6,104
6,726
1,726
6,380
1,686
1,707
6,567
1,738
7,044
1,710 ! 6,748
1,765 j 7,184
1,810 | 7,317
1,192
1,220
1,241
1,287
1,289
1,352
1,382
1,450
1,489
1,552
1,578
1,620
1, 596
1,609
1,623
1,843
1,864
1,877
1,900
1,903
1,978
2,016
2,071
2,064
2,117
2,141
2,151
2,170
2,186
2,208
950
959
954
959
960
980
991
1,019
1,033
1,030
1,017
1,014
1,009
1,015
1,037
787
764
780
816
862
878
963
1,000
992
940
931
907
888
901
2,878
2,922
2,952
3,079
3,039
3,082
3,190
3, 252
3,284
3,295
3,377
3,39S
3,335
3,469
3,495
187
183
173
177
184
199
207
238
250
249
233
232
252
256
260
1,031
1,018
1,062
1,148
1,181
1.203
1, 192
1,191
1,207
1,208
1,205
1,154
1,262
1,251
1,262
7,686
7,656
7,998
8,631
8,845
8,895
8,888
8,919
8, 924
9, 064
9,124
8, 990
9, 622
9, 818
9,959
578
568
610
636
630
627
632
635
669
705
719
720
750
792
811
24,974
24, 768
25, 675
26,282
27,814
27,145
28,403
28,172
30, 007
29, 021
29, 743
30,454
29,844
31,227
31,247
1,879
1,850
l,ls38
2,041
2,050
2,023
2,112
2,148
2,245
2,228
2,296
2,285
2,260
2,358
2,425
615
443
326
408
486
559
712
732
630
612
760
546
541
528
I
San
Francisco
i
I
|
i
781
774
792
852
881
880
869
862
852
860
845
862
924
927
970
899
935
962
1,041
1, 031
1, 029
1,017
1,027
997
1,014
1, 026
988
1,073
1,088
1,125
260
258
244
261
268
270
265
262
264
268
265
264
281
297
324
|
!
j
!
!
i
!
I
1,727
1, 699
1,757
1,849
1,894
1,915
1,959
1,986
2,076
2,079
2,094
2,166
2,163
2,186
2,230
2,494
2,536
2,604
2,659
2, 637
2,730
2,781
2,806
2,804
2,856
2,929
2,882
3,002
3,031
3,055
1,044
1,026
1,018
1,052
1, 092
1,084
1, 090
1,105
1,157
1,137
1,138
1,164
1,153
1,193
1,232
879
855
850
877
953
1,004
1,027
1,127
1,220
1,168
1,108
1,092
1,074
1,066
1,076
3,618
3,568
3,762
3,873
4,004
3,986
4,185
4,166
4,285
4,224
4,340
4,316
4,246
4,462
4,504
1,016
1,005
1,014
1,050
1,121
1,122
1,097
1,114
1,182
1,196
1,171
1,186
1,197
1,187
1,229
807
800
805
842
876
875
871
868
880
869
861
847
827
842
885
1,021
997
1,013
1,050
1,082
1,091
1,113
1,113
1,140
1,126
1,154
1,148
1,142
1,158
1,166
779
719
676
754
795
796
764
791
822
805
761
800
815
800
862
2,292
2,288
2,3132,417
2,510
2,525
2,566
2,602
2,74a
2,702
2,714
2,882
2,914
2,973
2,996
58
47
32
29
56
40
48
66
77
66
59
91
45
49
61
64
72
68
51
48
48
67
69
55
53
59
37
27
35
35
65
59
47
39
27
25
31
38
32
52
49
53
47
42
37
109
71
51
35
44
60
71
67
94
81
99
108
72
68
34
64
47
31
37
14
17
25
48
29
30
35
36
19
38
20
27
18
19
12
53
25
23
10
6
7
9
11
17
20
17
7
12
12
15
12
17
24
15
7
4
13
16
6
12
25
10
8
12
48
59
33
18
19
29
39
58
27
46
39
42
58
41
52
2,431
2,415
2, 669
2,929
2,948
2,867
2, 899
2,853
2, 790
2,833
2,910
2,805
! 2, 995
3,100
3,024
7,418
7,425
7, 925
7,818
8,800
7,994
8,838
8,346
;
9,453
; 8,631
j 9,177
! 9, 686
j 9, 051
9, 971
! 9, 587
74
41 !
21
10
39
41
56
46
72
42
48
84
38
60
166
107
S
100
168
139
231
258
156
111
212
161
113
185
104
FEDEKAL RESERVE BULLETIN
JANUARY, 1928
TABLE 3.—NONMEMBER BANKS^-PRINCIPAL RESOURCES AND LIABILITIES ON CALL DATES, DEC. 31, 1923, TO OCT. 10, 1927
[In millions of dollars. Figures are for dates indicated or dates nearest thereto for which figures are available]
Federal Reserve District
Call date
Total
Boston
Loans and investments:
1923—Dec. 31
1924—Mar. 31
June 30Oct. 10
Dec. 3 1 . . 1925—Apr. 6
June 30
Sept. 28
Dec. 31
1926—Apr. 12
_
_...
June 30.-Dec. 31
1927—Mar. 23
June 30--_
Oct. 10
Loans:
1923—Dec. 31
1924—Mar. 31
___
June 30
Oct. 10
Dec. 31
1925—Apr. 6
June 3 0 . . .
Sept. 28
„_.
Dec. 31
1926—Apr. 12
__.
June 30
Dec. 31
1927—Mar. 23
June 30
Oct. 10
Investments:
1923—Dec. 3 1 . .
1924—Mar. 31
June 30.
_
_.
Oct. 10
Dec. 31
1925—Apr. 6.
June 30
_.
Sept. 28
Dec. 31
1926—Apr. 12
June 30
Dec. 31
1927—Mar. 23
June 30
Oct. 10
Deposits (exclusive of bank deposits):
1923—Dec. 31
1924—Mar. 31
June 30
Oct. 10__
Dec. 31
..__
1925—Apr. 6
June 30
_. .
Sept. 28
Dec. 31
1926—Apr. 12
June 30
Dec. 31
1927—Mar. 23
-II"!
June 30
Oct. 10-.
•Rediscounts and bills payable:
1923—Dec. 31
1924-Mar. 31
1""""'
June 30
Oct. 10.
Dec. 31
1925—Apr. 6.
1.1'.'.'.'.
June 30_
Sept. 28
Dec. 31
1926—Apr. 1 2 . . .
~_.
June 30
_. . .
Dec. 31
1927—Mar. 2 3 . . . .
~~~~
June 30
Oct. 10__
New
Phila- CleveYork delphia land
Minne Kansas
St.
RichCity Dallas
mond Atlanta Chicago Louis apolis
San
Francisco
17,516
17,790
18,037
18,137
18,437
18, 865
19,312
19,650
19,720
20,011
20,378
20,376
20,513
20,967
21,201
2,972
3,005
3,087
3,130
3,151
3,269
3,289
3,339
3,343
3,397
3,482
3,512
3,544
3,663
3,730
4,786
4,938
5,116
5,175
5,356
5,400
5,652
5,712
5,628
5,780
6,056
6,061
6,321
6,567
6,644
255
290
303
313
343
398
403
447
474
491
500
556
569
584
613
1,185
1,211
1,223
1,232
1,243
1,271
1,289
1,311
1,313
1,341
1,326
1,348
1,358
1,366
1,371
1,020
1,029
1,044
1,052
1,053
1,070
1,081
1,099
1,102
1,112
1,120
1,120
1,095
1,112
1,105
512
523
520
520
536
591
615
688
752
754
677
629
590
585
584
2,291
2,331
2,314
2,312
2,352
2,433
2,464
2,493
2,520
2,559
2,607
2,631
2,644
2,695
2,729
725
718
721
721
714
702
756
761
757
739
766
746
734
734
728
741
698
663
663
657
667
683
690
674
675
668
633
634
634
637
729
714
699
685
702
703
708
709
716
701
691
692
678
678
206
233
230
230
227
230
224
226
238
230
236
222
233
233
246
1,094
1,100
1,117
1,104
1,102
1,132
1,148
1,175
1,203
1,232
1,249
1,226
1,113
1,116
1,126
11,594
11,802
11,954
12,012
12,157
12,466
12, 843
13,171
13,258
13,524
13,698
13,693
13,772
13, 982
14,124
1,675
1,697
1,777
1,811
1,829
1,907
1,928
1,976
1,990
2,014
2,089
2,109
2,124
2,186
2,219
2,815
2,951
3,088
3,143
3,218
3,280
3,509
3,578
3,525
3,730
3,911
3, 932
4,180
4,362
4,414
713
699
733
754
790
777
844
879
893
860
931
927
900
950
779
804
803
814
826
850
863
893
899
926
902
923
924
918
929
765
775
788
792
788
799
813
831
833
843
849
854
820
827
820
446
456
457
457
468
511
535
602
652
646
579
531
497
1,593
1,600
1,567
1, 514
1,561
1,608
1,632
1,638
1,665
1,684
1,686
1,704
1,708
1,705
1,716
610
605
612
611
591
587
617
619
613
595
623
595
584
586
578
602
561
531
516
501
496
502
504
484
475
463
433
419
417
415
647
634
623
612
620
618
624
623
627
617
606
597
585
579
583
181
204
204
204
201
201
199
201
207
199
205
189
197
199
206
792
802
805
805
800
819
844
862
884
902
925
895
807
815
811
5,922
5,988
6,083
6,125
6,280
6,399
6,469
6,479
6,462
6,487
6.680
6,6S2
6,741
1,971
i;987
2,028
2,032
2,138
2,120
2,143
2,134
2,103
2,050
2,145
2,129
2,141
2,205
2,230
566
577
604
580
589
608
626
603
595
598
640
625
642
684
663
406
407
420
418
417
421
426
418
414
415
424
425
434
448
442
255
254
256
260
265
271
7,077
1,297
1,308
1,310
1,319
1,322
1,362
1,361
1,363
1,353
1,383
1,393
1,403
1,420
1,477
1,511
269
269
271
266
275
285
285
66
67
63
63
68
80
80
86
100
108
98
98
93
97
101
698
731
747
798
791
825
832
855
855
875
921
927
936
990
1,013
115
113
109
110
123
115
139
142
144
144
143
151
150
148
150
139
137
132
147
156
171
181
186
190
200
205
200
215
217
222
80
76
73
83
84
84
86
89
84
85
95
93
99
105
25
29
26
26
26
29
25
25
31
31
31
33
36
34
40
302
298
312
299
302
313
304
313
319
330
324
331
306
301
315
17,169
17,190
17,694
17,880
17, 999
18,692
19,172
19,796
19,195
19,692
19,952
19,555
19,933
20,385
20, 837
2,808
2, 827
2,929
2,962
2,982
3,085
3,106
3,138
3,157
3,199
3,283
3,308
3,322
3,452
3,514
4,553
4,598
5,045
5,000
4,747
5,175
5,456
5,795
4,945 !
5,549
5,794
5,467
6,020
6,262
1,171
1,188
1,214
1,217
1,272
1,307
1,319
1,332
1,374
1,366
1,385
1,436
1,424
1,459
1,483
1,168
1,192
1,204
1,211
1,218
1,232
1,261
1,281
1,274
1, 265
1,297
1,263
1,279
1,294
1,315
997
966
964
978
1,011
1,009
993
1,022
1,060
1,037
1,032
1,058
1,041
1,051
1,068
531
543
513
539
600
666
677
7D0
887
841
697
649
613
608
619
2,333
2,382
2,357
2,381
2,442
2,500
2,552
2,581
2,570
2,620
2,665
2,654
2,660
2,705
2,742
721
702
706
713
752
743
807
836
849
793
814
779
782
783
761
731
707
676
706
720
727
731
758
742
734
715
679
677
665
744
728
719
759
819
811
809
822
810
792
766
776
775
758
774
280
242
241
265
280
282
242
242
277
251
247
253
254
249
278
1,132
1,115
1,126
1,149
1,156
1,155
1,179
1,199
1,250
1,245
1,257
1,233
1,086
1,099
1,109
415
350
344
337
339
326
361
352
372
350
398
324
259
275
272
36
29
15
20
42
38
24
25
32
14
25
7
9
10
7
28
28
21
17
25
19
25
30
34
38
31
36
30
27
19
21
17
17
16
25
26
23
26
26
25
25
29
25
20
2
28
34
43
46
32
38
52
50
34
37
46
36
29
32
25
31
25
33
32
22
21
26
31
20
24
39
36
22
27
28
66
62
55
46
52
61
48
39
61
60
54
74
61
63
55
35
25
32
27
22
17
28
21
21
22
25
31
30
25
38
33
31
29
22
10
9
14
12
14
13
15
14
11
15
13
12
12
12
13
9
7
11
14
12
13
12
14
1
12
11
13
105
FEDERAL RESERVE BULLETIN
JANUARY, 1928
TABLE 4—ALL BANKS IN THE UNITED STATES i—PRINCIPAL RESOURCES AND LIABILITIES ON OCTOBER 10 AND JUNE 30,
1927,2 BY STATES
[In thousands of dollars]
Loans and investments
Total
State
October
Loans
June
I
October j
3
June
Investments
October
June
Deposits
exclusive of bank
deposits)
October
June
Rediscounts
and bills
payable
October
June
New England:
Maine
4,497 5,410i
382,467
198, 793 i
196,150
416,619
409,901
217, 826 213, 751 390,009
New Hampshire..
1,681
254,279
140, 381!
139,991
283, 385
282,499
3,295:
143, 004 142, 508! 258, 367
Vermont
2,107
222,424
3,203 :
153,401!
155,049
237,249
235, 595
80, 546! 223,950
83, 848
Massachusetts
3,984,880 3,883, 897 2,720,488! 2,658,334 L 264, 392 1,225,563! 3, 715,098 ( 615, 801 30,720 51, 507;
,
,
Rhode Island
275,193 j
274, 374!
516,278
513, 552
497, 617
227!
495,155
241, 085 239,178
563
Connecticut
8, 379:
672, 621
658,080;j 508, 876 i 501,004j 1, 110,438 : 090,252 5,717
1,181, 497 1,159, 090
•
,
Middle Atlantic:
4,
New York
_..
14,838,681114,739,511 10, 410,110 10,239, 456j 4, 428, 571 500,055114, 034,053 14, 209, 376 214, 335 107,313|
!
813,997 790,608 2, 165,270: 2, 149,075 38, 402 43, 859!
New Jersey
2,286,849 2,255,429 1,472,852 1,464,821
C Cr\1 Eft/4 C ATi OKO
~~"
Pennsylvania
5,501, 594 5,411,352 3,209,339 3,141,264'; 2,292,255 2,270,088 4, 833,4851 4, 783,977 74, 579 98,853
East North Central:
2, 611, 593 2, 559,223 1,935,866' l,902,901 !
Ohio
675, 727 656, 322 2,511,444 2,457,787 < 34, 348 < 40, 388;
Indiana
882,155
880,900
833,268
831,338 47, 087 48,734i
669,866!
673,763;
212,289; 207,137
3, 712, 360 3, 665,212 j 2, 758,177| 2, 702,246!
Illinois
962,966 3,519,509! 3,477,447 21,954 36,299!
954,183
Michigan..
1,849, 604 1,835,373
895, 513:
911,157
954, 091 924,216 1,804,911 1,794,383 18, 573 33,144:
622, 487
Wisconsin
_._.| '898,220 904, 950
633,489
901,933
893,310 6,335 14,422
275, 733 271,461
West North Central:
562, 728
354,916
546, 64l|
Minnesota
__! 917,644 896,096
349, 455 895,416! 883, 086 7,9991 8,832!
680, 326:
107,291 «825,143 5 818,843 7,482 8, 8391
112,236
Iowa.__
j 792,5621 783, 289
675,998:
894, 6381 891,151j
Missouri
! 1,246,584' 1,242,337
351, 9461 351,186 1,181, 72651,171,623 24,287| 33,968!
101,935
North Dakota
I 132,770 129,045
30,8351: 29,165
157,1321 136,261 2,117 3,686!
99, 880'
29,295
1,845
93,487
South Dakota.
125,237 120,276
31, 750
144,578! 130,495
3, 3031
90,981
339,021
Nebraska
_._
413,848 404,599!
74, 827: 65, 902 428,857
416, 717 7,064 7,664!
338, 697
89,164 5 417,099 5 418,177 5,389
6,927:
305,153
93,890|
Kansas
_.i 399,043 400,679
311, 515
i
South Atlantic:
135,981
1,073
1,279!
55,473:
131, 657!
115,966
118, 380
53,228
78,429
80, 508
Delaware.803,145
323,919
788,627
479,226
731,951 10, 709 17,5471
750,272
312,090
476,537i
Maryland
59, 634, 59, 691 240, 547 242, 306
241, 527 j
181, 635 181, 836!
District of Columbia__. 241,269
9541
1,144
546,116
84,191 i 79,280
537,152
461, 925 457,872
Virginia
457,196 19,055 13,916!
459,168
364,737
66, 564! 65,480! 342, 075 345,696
365, 400;
298,173
West Virginia
9, 618'
299,920!
9,168
403, 758
51, 400
387,847.
352, 358 342,445!
45,402
North Carolina364,410 18, 384 19,369!
391, 462
184, 322
40, 774
180, 725!
143,548
36, 672 189, 723
6,310!
South Carolina
176,556
144, 053!
2,"'
58,431
54, 354 346, 789| 320,737 10,145 14,341 ;
297,945'
Georgia
_
.-! 366,8921 352,299! 308,461
Florida
| 385,1001 401, 944! | 258, 384 278,430| 126, 716, 123, 514 383,2851 425, 37" 16,846 13, 042,
!
East South Central:
484,528
9, 600 11,907
112, 544! 107, 036 422,340
371, 984 370,521
477, 5571
Kentucky
413, 805
387,424
50, 226 j 49,119 5 390, 522 «388, 253 10, 289 8,431
334,173
383,2921
Tennessee
337.198
53,325!
284,8031
50, 308 s 293, 235 s 259, 761 5,052 11,804
271, 975|
Alabama
__
231, 47" 221, 667
49,732!
226, 502
163, 0G4
49,465
218,158 10,753
7,321
212, 529|
236, 303
Mississippi
176,770
West South Central:
203,914
9,886 8,226
198, 853
199,816
28, 324 205,328
30, 605
173, 309 170,529
Arkansas
400,049
334,020
400, 022
373,240 23,167 23,464
66,002
334,472
376, 548
Louisiana
65, 577
373,966
6, 275 3,897
245, 376
370, 636
416,785
245,999
127,967: 125, 260 414,109
Oklahoma
_..
991,611
9, 542 16,0351
756,276
942, 857
925,309
791,973
Texas
199,638; 186,581 1,000,330
Mountain:
141,098
596
1,520
86,949
130, 243
135, 510
157,196
46,417
83, 826
48,561!
Montana
1,116
1,832]
47,738
73, 264
75,074
79, 509
86, 286
25, 441
47, 823
27, 336:
Idaho
638
37,059
51,719
59, 378
14, 352
892
37,367
51,768
55, 361
14,709;
Wyoming
166,676
96, 682 283, 591 274, 600 3, 376 2,584
159,360
256, 042
265, 204
98, 528j
Colorado
25,913
11,517
20,261
31,778
42, 471
615
12,513
38,426
3(35
New Mexico
33,925
42,37
19, 411 s 72, 767 5 71, 221 6 1,512 6 1, 029
42, 534
61,945
20,021
62,398
Arizona
124, 544
2,585
29,804 ;
114.199
144,003
111,538
140,875
Utah...,
29, 337
2,175
121, 005
38,416
7,976:
28,302
27,902
35, 746
426
7, 844
36,278
Nevada
38, 111
Pacific:
406,720
419,778
3,462
265,884
153,894'
145,487
436, 228
421,945
261, 233
Washington
2,543
161, 517 160,889
252,991
276, (520
"'9,046;
92,102
Oregon
_
266,616
1,758 4,115
260, 503
3,149, 789 3,134, 719 2, 299, 6: 2, 319,200
3,097, 048 3,100,681 53,474 41, 893
California
Total
_
035, 548; 16,802,776 52, 084, 264 51, 611, 66'
54,651, 560 53,933, 746 37, 616, 012 37,130,970 17,1
799,706 815, 580
Number
of reporting
banks
October
June
143
123
105
442
37
232
144
123
105
442
37
232
1,150
572
1,629
1,151
568
1,640
1,063
1,063
1,837
749
970
1,064
1,065
1,843
743
973
1,174
1,370
1,439
529
418
1,021
1,168
1,195
1,383
1,457
530
417
1,025
1,180
49
244
42
497
338
465
279
469
322
47
244
43
497
339
470
281
471
327
602
520
356
326
603
520
356
325
453
232
693
1,416
455
232
696
1,416
209
144
8
297
59
46
107
35
210
144
88
297
59
46
107
35
357
251
536
26, 665
1
358
253
544
26,780
1 Includes all National, State, and private banks in the United States except a certain number of nonreporting private banks not under State
supervision.
2
Figures for State institutions are taken from the table on p. 107, and represent in some cases the condition of banks as of dates other than Oct.
10 and June 30.
3 Includes acceptances of other banks and foreign bills of exchange sold with indorsement by member banks.
4
Includes bonds borrowed.
5
Includes due to banks.
• Includes other liabilities.
106
FEDERAL RESERVE BULLETIN
JANUARY, 1928
TABLE 5—NATIONAL BANKS—PRINCIPAL RESOURCES AND LIABILITIES ON OCTOBER 10 AND JUNE 30, 1927
[In thousands of dollars]
Loans and investments
State
Total
October
New England:
Maine
New Hampshire
Vermont
Massachusetts
Rhode Island
Connecticut
Middle Atlantic:
New York.
New Jersey
Pennsylvania
East North Central:
Ohio
-Indiana
Illinois
Michigan
Wisconisn
West North Central:
Minnesota
Iowa
--Missouri
North Dakota
South Dakota
Nebraska
Kansas...
South Atlantic:
Delaware
Maryland
District of Columbia...
Virginia
West Virginia
._
North Carolina
South Carolina
Georgia
Florida
East South Central:
Kentucky
Tennessee
Alabama
Mississippi
West South Central:
Arkansas
Louisiana
Oklahoma
Texas
Mountain:
Montana
Idaho
Wyoming
Colorado
New Mexico
Arizona..
Utah..
Nevada
Pacific:
Washington—
Oregon
California
Total.
Loans
June
October
Investments
June
October
June
Deposits
(exclusive of bank
deposits)
October
June
Rediscounts
and bills
payable
October
June
Number
of reporting
banks
October
June
69, 804 135,928 131,682 1,890
54, 872 1,593
58, 960
26,955
1,000
54,133
56,310
26,180
1, 097, 256 1,047, 780 19,935
334, 682
44,422
45,615
563
22,053
79,492 240, 637 233, 651 2,701
1,877
3,207
2,021
37,465
187
57
55
46
153
13
65
57
55
46
153
13
65
4,607, 861 4,483,375 3,150, 248 3,027, 681 1,457,613 1,455,694 4, 060, 983 4,197, 605 69,389
822,362 801,212
502,438 498,353 319,924 302, 859 782, 664 764,317 14, 653
2,587,188 2, 557,255 1, 547,860 1,544, 753 1,039,328; 1,012,502 2, 222,190 2, 218,116 40,955
56, 815
23,161
52, 589
560
294
867
554
291
143,829
146,709
66,919
67,805
63,599
64,947
1,166,834
1,218, 573
55, 535
56,443
261,456 253,126
74, 712
40,354
37. 685
865,033
34,518
179,579
74,025
39,964
37,419
832,152
33,482
173, 634
727,181 715,732
476,376 473,086
343,521 342,266
232, 219 236,116
1,414,"" 1,411,232 1,064, 740 1, 052, 674
442,962 449,996
295,124 307, 875
370, 780 372,622
251,162 254, 055
71,997
27,451
27, 262
353,540
21,925
81,877
250,8051
lll,302J
349, 348
147,838
119, 618
242, 646 672, 266 669,189
106,150 317, 640 315,710
358, 558 1, 263, 672 1,268, 551
142,121 432, 200 445, 747
118,567 352, 033 344, 695
14,334
3,129
8,369
7,794
2,454
10, 662
4,776
16, 750
8,072
8,092
338
231
489
133
156
340
233
490
134
156
520,662
277, 804
506, 762
74, 254
57,882
171, 286
191, 277
497,020
273,462
501, 868
72, 255
55,440
165, 275
190, 567
332,903
190, 793
374,800
49,830
35, 804
130,352
132,938
313, 077
191,237
371, 554
49,052
34,949
126,457
134,466
187, 759
87, 011
131, 962
24, 424
22, 078
40,934
58,339
183,943
82, 225
130, 314
23, 203
20, 491
38, 818
56.101
492,758
263, 838
422, 086
84,545
63, 011
154, 239
191, 646
477, 005
258,926
402,150
73,400
57,322
149,693
190,967
1,251
2,089
6,402
745
595
2,745
2,291
I, 1
2,902
19, 655
1,412
1,043
2,341
2,390
281
286
135
142
98
154
258
277
287
135
141
98 '
153
257
22, 683
259,496
126,278
333,186
167,738
153,920
104,64r
220, 462
203,173
21, 630
244,852
125,286
324, 083
167, 817
147,765
101, 201
207, 394
212,184
12,402
160, 004
94,344
271, 261
129,591
129,566
77,497
180,913
123, 803
12,176
157,189
92,923
267,069
130, 241
126, 540
76, 791
170, 951
133, 814
10,281
99,492
31,934
61,925
38,147
24, 354
27,145
39, 549
79,370
9,454
87, 663
32,363
57, 014
37, 576
21, 225
24,410
36, 443
78,370
19,241
230, 718
123,994
281, 559
154,380
141, 238
102, 816
204,445
193,205
18,192
212,397
125,471
279,587
154,168
132,160
98,490
192,219
211,095
501
5,315
1,017
11,978
3,406
7,201
1,102
2,364
6,567
703
12,153
169
6,839
3,769
7,841
2,045
4,363
6,117
19
84
13
167
122
76
65
83
63
19
84
13
167
122
77
65
83
62
254,056
200,038
182,038
74,983
247,085
195, 906
158, 388
72, 724
178,373
168, 056
139, 788
54, 635
176, 910
165, 031
118, 761
51, 237
75, 683
31, 982:
42, 250!
20, 348
70,175
30,875
39, 627
21, 487
215, 738
181, 378
176, 752
72, 460
207,203
179,109
148,084
71,83;"
4,913
4, 297
2,305
3,714
7,220
2,439
5,344
2,773
141
104
106
36
142
104
105
36
79, 358
94, 320
306, 866
774, 758
75, 809
91,197
304, 501
735,967
60, 399
81,092
197, 562
604, 959
58, 027
78, 709
197, 698
575,474
18, 959
13, 228
109, 304i
169,799!
17, 782
12, 488
106, 803
160,493
74, 960
86, 364;
332,136:
753, 754
75,179
82, 467
334, 997
706, 507J
2,171
3,468
5,300
6,229
1,087
2,100
2,728
8,313
78
32
349
651
79
32
350
649
70, 205
43,055
32,421
207, 411
23, 53r
20, 864
42,145
15, 685
66, 253
42, 758
32, 666
198, 249
23, 248
20, 581
42, 311
15, 298
45, 438
28, 216
21, 388
126, 528
15, 282
13, 617
30,073
10, 854
42, 597
28, 847
21, 857
119, 212
14, 305
13, 609
31, 578
10, 508
24, 767i
14, 839^
11, 033:
80, 883
8, 255i
7, 247J
12, 0721
4, 831;
23, 656
13, 911
10, 809
79, 037
8,943
6,972
10, 733
4,790
80, 651
48, 053!
36,144
220, 574!
25, 754!
24, 275|
38, 372j
15, 262J
71,
45,
34,
211,
24,
23,
37,
14,
211
677
245
2,438
306
668
497
42G
717
1,104
172
1,646
219
336
391
74
52
30
124
29
15
20
10
74
52
30
124
29
15
20
10
254,218 245, 224
156,141 153, 545
175, 708 170, 305
104,100 103, 203
1, 612,388 1,417,735 1,160, 215 1,024, 933
98, 077|
71, 6081
452,173<
I 254, 344 1,342 1,478
91,67
6731
67.102 262, 745j 177, 491i
464
1,670
182,
392, 802 1, 578,129| 1, 381, 952| 32, 331 22,953
110
95
239
109
95
240
20, 987,435 20, 347,836 14, 375, 565 13, 959, 796 6, 611, 870: 6, 388, 040 19, 268, 247 18, 906, 538 316, 330 368, 042
7,798
7,790
829|
013!
232
583
723
561
745
972
107
FEDERAL RESERVE BULLETIN
JANUARY, 1928
TABLE 6— STATE BANKS i—PRINCIPAL RESOURCES AND LIABILITIES ON OCTOBER 10 AND JUNE 30, 1927,2 BY STATES
[In thousands of dollars]
Loans and investments
State
Total
October
Loans
June
October
Investments
June
October
June
Deposits
(exclusive of bank
deposits)
October
June
Rediscounts
and bills
payable
October
New England:
Maine.
___
124,081
269,910 266,072
122,125 145,829 143, 947 254,081 250, 785 2,607
88
New Hampshire
100, 027 100, 027 115, 553 115, 553 199,407 199,407
215, 580 215, 580
1,107
Vermont
115, 716 117, 630
56, 586
54,366 167, 640 168,291
172,302 171, 996
Massachusetts
! 764,345 ,714,735 1, 853,493 1,823,854 910, 852 890,881 2, 617,842 2, 568,021 10, 785
,
Rhode Island.
459,826 457, 989 240,666 240,864 219,160 217,125 452, 002 450, 733
493,042 484,452 426,999 421, 512 869,801 856, 601 3,016
Connecticut
920,041 905,964
Middle Atlantic:
New York
10,135,465 10,169,752 7,164, 507 7,125,391 2, 970, 958 3,044,361 9,973,070 10,011,771 82, 576
New Jersey
970,403 966,463 494,073 487,749 !l, 382, 606 1,384, 758 21,099
1, 464, 476 1,454,212
Pennsylvania
2,914,124 2, 853,847 11,661,197 1, 596, 261 1, 252, 927 1,257,586 2,611,295 2, 565,861 33, 624
East North Central:
Ohio
1,881, 944 1, 839, 950 1,457,022 1,426,274 424,922 413, 676 1,839,178 1, 788, 598 3 20,014
Indiana
._
_
538, 634 538, 634 ! 437,647 437, 647 100, 987 100, 987 515, 628 515, 628 43, 958
Illinois
298, 272 2, 253, 980 '1,693,437 1, 649, 572 604,835 604, 408 255, 837 2,208,896 13, 585
Michigan
1,406, 642 1, 385, 377 1 600,389 603, 282 806,253 782, 095 1,372,711 1,348, 636 10, 779
Wisconsin
527,440 532, 328 371, 325 379, 434 156,115 152, 894 549, 900 548, 615 3,881
West North Central:
Minnesota
_
229, 825 233, 564 167,157 165, 512 4 402, 658 4 406, 081 6,748
399,076
561, 305 559, 917 5,393
25,225
25,066
Iowa
489, 533 484, 761
514, 758 509,827
Missouri
739, 822 740, 434 519, 838 519, 562 219,984 220, 872 4 759, 640 4 769,473 17, 885
62, 861 1,372
5,962
72, 587
North Dakota
52.105
6, 411
58, 516
56, 790
50, 828
73,173 1,250
81, 567
South Dakota
57, 683
9,672
67, 355
64, 836
56, 032
27,084 274, 618 4 267,024 4,319
33,893
Nebraska
208, 669 212,240
242, 562 239,324
* 225, 453 227,210 3,098
35, 551
33, 063
Kansas
172,215 177,049
207, 766 210,112
South Atlantic99,139
572
45,192
43, 774
97, 774
Delaware.
68.106
66,253
113,298 110,027
224,427
224,427 519, 554 519, 554 5,394
Maryland
543, 649 543, 649 319,222 319,222
27, 700
27, 328 116, 553 116,835
127
87,291
88, 913
116,241
Districts of Columbia. ._ 114,991
22,266
22, 266 177, 609 177, 609 7,077
190, 664 190, 664
212,930 212, 930
Virginia
28,417
27, 904 187, 695 191, 528 5, 762
168, 582 169, 679
196,999 197, 583
West Virginia
27,046
24,177 250,224 232,250 11,183
249,838 240, 082 222, 792 215, 905
North Carolina
13, 629
12,262
78, 066 1,796
86, 907
67,2fi2
79, 680
79, 524
South Carolina
66,051
18,882
17,911 142, 344 128, 518 7,781
146,430 144, 905
Georgia
127, 548 126, 994
47,346
45,144 190, 080 214,282 10,279
181,927 189, 760 134, 581 144, 616
Florida
East South Central:
36,861 4 206, 602 4 206,602 4,687
36,861
Kentucky
193,611 193, 611
230,472 230,472
18, 244 4 209,144 4 209,144 5,992
18, 244
169,142 169,142
Tennessee
187, 386 187, 386
10, 681 116, 483 111, 677 2,747
91, 579 102,906
11, 075
Alabama.
102,654 113, 587
122,135 111,827
27,978 163, 843 146,323 7, 039
29, 384
Mississippi
151, 519 139,805
West South Central:
10, 542 130, 368 124, 637 7,715
124, 556 123, 044 112,910 112, 502 * 11,646
Arkansas
_
53, 514 290,184 290, 773 19, 699
52, 349
305, 239 306, 744 252,890 253, 230
Louisiana
_
81, 788
975
18,457
81, 973
18,663
47, 678
66,135
48, 437
67,100
Oklahoma
246, 576 218,802 3,313
29, 839
Texas...
216, 853 206,890 : 187, 014 180, 802
Mountain:
385
69, 269
22, 761
76, 545
23, 794
41, 229
41,511
63, 990
65, 305
Montana
439
11,530
38, 233
34,496
12, 497
18, 976
19, 522
30, 506
32, 019
Idaho
3, 543
23, 234
393
21,129
3,676
15, 510
15,671
19,053
19, 347
Wyoming
63,017
938
17, 645
63,017
17, 645
40,148
40,148
57, 793
57, 793
Colorado
2, 574 4 16, 717 4 9,202
309
4, 258
5, 956
10, 631
8, 530
14,889
New Mexico
48,492
12, 439
47, 660 8 844
12, 774
28, 925
28, 760
41,364
41, 534
Arizona
.__
86,172
18, 604
83, 260 2,088
17, 732
79,960
84,126
98,564
101,858
Utah
23,154
3,054
23,139
3,145
17,448 j 17, 394
20, 448
20, 593
Nevada
Pacific:
53,808 173, 555 167, 601 1,201
55, 817
165, 560 161,496 I 109, 743 107, 688
Washington
93, 875
89,125 1,294
25, 000
27, 438
57,683
82,683 i 57,416
84,854
Oregon
1, 532, 712 1, 712, 395 1,134,718 jl, 289, 678 397,994 422,717 1, 518,919 1, 718, 729 21,143
California
Total...
1
3
3
4
5
Includes
Or dates
Includes
Includes
Includes
i
Number
| of reporting
|
banks
June | " b -
3,533
88
1,182
14,042 j
40 i
3,481 j
50,498.1
20,698! I
46,264
June
59
289
24
167
87
68
59
289
24
167
590
278
762
597
277
772
3 29,726
43, 958
19, 549
25,072
6,330
725
832
1,348
616
814
724
832
1,353
609
817
7,794
5,937
14,313
2,274
2, 260
5,323
4,537
893
1,084
1,304
387
320
867
910
918
1,096
1,322
389
319
872
923
576
5,394
785
7,077
5,849
11, 528
4,265
9,978
6,925
160
29
330
216
389
214
386
259
28
160
30
330
217
393
216
388
265
4, 687
5,992
6,460
4, 548
461
416
250
290
461
416
251
289
7,139
21, 364
1,169
7,722
375
200
344
765
376
200
346
767
803
728
720
938
146
« 693
1,784
135
92
57
173
30
31
87
25
136
92
58
173
30
31.
87
25
1,984
2,445
18,940
247
156
297
249
158
304
33,558,747 33,486,401 ;' 23,135,069 '23,071,665 10,423,678 10,414,736 132,816,017 32,705,129 418,356 447, 538 18,867
18, 990
all State and private banks in the United States except a certain number of nonreporting private banks not under State supervision.
nearest thereto for which figures are available.
bonds borrowed.
due to banks.
all other liabilities.
NOTE.—All figures used in the June columns are as of June 30 except as follows: Connecticut, savings banks, Mar. 31; Tennessee, May 18;
Missouri, Apr. 12; Kentucky, June 30, 1926.
All figures in the October columns are as of Oct. 10 except as follows: Maine, Sept. 24; New Hampshire, June 30; Massachusetts, savings banks,
Oct. 31; Rhode Island, State banks, Sept. 7, savings banks, June 30; Connecticut, savings banks, Mar. 31; New York, State banks, Sept. 30, savings
banks, June 30; New Jersey, Sept. 30; Pennsylvania, Oct. 5; Ohio, Sept. 12; Indiana, June 30; Wisconsin, Oct. 3; Minnesota, Nov. 7; Missouri, Aug.
25; Nebraska, Sept. 30; Kansas, Sept. 12; Maryland, June 30; Virginia, June 30; North Carolina, Nov. 4; Georgia, Oct. 3; Kentucky, June 30,1926;
Tennessee, May 18; Alabama, Oct. 17; Louisiana, Sept. 28; Colorado, June 30; Utah, Sept. 30.
FEDERAL RESERVE DISTRICTS
KANSAS CITY
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TEXAS
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