Full text of Federal Reserve Bulletin : January 1932
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FEDERAL RESERVE
BULLETIN
JANUARY, 1932
ISSUED BY THE
FEDERAL RESERVE BOARD
AT WASHINGTON
Recent Banking
Developments
Report of Young Plan Advisory
Committee
Conference of South American Central Banks
UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1932
FEDERAL RESERVE BOARD
Ex officio members:
EUGENE MEYER, Governor.
. Vice Governor.
A. W. MELLON,
Secretary of the Treasury, Chairman.
J. W. POLE,
Comptroller of the Currency.
CHARLES S. HAMLIN.
ADOLPH C. MILLER.
GEORGE R. JAMES.
WAYLAND W. MAGEE.
FLOYD R. HARRISON, Assistant to the Governor.
WALTER WYATT, General Counsel.
CHESTER MORRILL, Secretary.
E. A. GOLDENWEISER, Director, Division of Research
and Statistics.
CARL E. PARRY, Assistant Director, Division of Research
and Statistics.
E. L. SMEAD, Chief, Division of Bank Operations.
E. M. MCCLELLAND, Assistant Secretary.
J. C. NOELL, Assistant Secretary.
W. M. IMLAY, Fiscal Agent.
LEO H. PATJLGER, Chief, Division of Examinations.
FEDERAL ADVISORY COUNCIL
District
District
District
District
District
District
No.
No.
No.
No.
No.
No.
1
2
3
4
5
6
(BOSTON)
( N E W YORK)
(PHILADELPHIA)
(CLEVELAND)
(RICHMOND)
(ATLANTA)
HERBERT K. HALLETT.
R. H. TREMAN.
HOWARD A. LOEB.
J, A. HOUSE.
HOWARD BRUCE.
JOHN K. OTTLEY.
District No. 7 (CHICAGO)
District No. 8 (ST. LOUIS)
MELVIN A. TRAYLOR, Vice President.
W. W. SMITH, President.
District
District
District
District
THEODORE WOLD.
W. S. MCLUCAS.
J. H. FROST.
HENRY M. ROBINSON.
No.
No.
No.
No.
9 (MINNEAPOLIS)
10 (KANSAS CITY)
11 (DALLAS)
12 (SAN FRANCISCO)
WALTER LICHTENSTEIN, Secretary.
n
OFFICERS OF FEDERAL RESERVE BANKS
Federal Reserve Bank
of—
Chairman
Philadelphia
Cleveland
Richmond
_
_
Atlanta
Chicago
St. Louis
_.
Minneapolis
Kansas City
Dallas...
San Francisco
__.
Deputy governor
Cashier
W. W. Paddock _.
W. Willett.
W. R. Burgess...
C. H. Coe.i
J. E. Crane
Ray M. Gidney.i
A. W. Gilbart
J. W. Jones.i
E. R. Kenzel
W. B. Matteson.i
Walters. Logan
J. M. Rice.i
L. R. Rounds
Allan SprouD
L. F. Sailer
C. A. Mcllhenny.
R. L. Austin
Geo. W. Norris
Wm. H. Hutt
W. G. McCreedy.2
H. F. Strater.
M. J. Fleming
George DeCamp
E. R. Fancher
Frank J Ziirlind.6n
Geo. H. Keesee.
George J. Seay
C. A. Peple
Wm. W. Hoxton
R. H. Broaddus
._ John S. Walden, jr.*
W. S. Johns
Oscar Newton
Eugene R. Black
M. W. Bell.
H. F. Conniff
W. S. McLarin, jr.*
C. R. McKay
Eugene M. Stevens... J. B. McDougal
W. C. Bachman.i
John H. Blair
D. A. Jones.i
J. H. Dillard....
0. J. Netterstrom.i
E. A. Delaney.i
John S. Wood
Wm. McC. Martin... 0. M. Attebery
S. F. Gilmore.2
A TT TToill 2
F. N. Hall.2
G. 0. Hollocher.2
Harry Yaeger...
John R. Mitchell
W. B. Geery
H. I. Ziemer.
C. A. Worthington-— J. W. Helm.
M. L. McClure
Geo. H. Hamilton
J. W. Helm
C. C.Walsh
Fred Harris.
R. R. Gilbert
B. A. McKinney
R. B. Coleman
W. 0. Ford.i
Wm.
A.
Day,.
Isaac B. Newton
Jno. U. Calkins
_.
Wm. M. Hale.
Ira Clerk
Frederic H. Curtiss
J. H. Case. .
Boston
New York
Governor
Roy A. Young
Geo. L. Harrison
1 Assistant deputy governor.
2
Controller.
MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS
Federal Reserve Bank of—
New York:
Buffalo branch...
Cleveland:
Cincinnati branch
Pittsburgh branch
Richmond:
Baltimore branch
Charlotte branch
Atlanta:
New Orleans branch
Jacksonville branch
Birmingham branch
Nashville branch
Chicago:
Detroit branch
St. Louis:
Louisville branch
Memphis branch
Little Rock branch
Managing director
_ R. M. O'Hara.
C. F. McCombs.
J. C. Nevin.
Hugh Leach.
W. T. Clements.
Marcus Walker.
Hugh Foster.
A. E. Walker.
J. B. Fort, jr.
W. R. Cation.
John T. Moore.
W. H. Glasgow.
A. F. Bailey.
Federal Reserve Bank of—
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. Earhart.
J. E. Olson.
C. E. Daniel.
J. L. Hermann.
W. D. Gentry.
M. Crump.
W. N. Ambrose.
R. B. West.
W. L. Partner.
C. R. Shaw.
D. L. Davis.
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The FEDERAL RESERVE BULLETIN is the board's medium of communication with member banks of the Federal reserve system and is the onlyofficial organ or periodical publication of the board. The BULLETIN will
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in
TABLE OF CONTENTS
Page
Review of the month—Recent banking developments
Changes in foreign central bank discount rates
Shipments of American currency to and from Europe
Report of the Special Advisory Committee appointed by the Bank for International Settlements
Conference of South American central banks
Annual report of the Bank of Java
Earnings and expenses of member banks
1
5
7
21
43
49
76, 77
National summary of business conditions
10
Financial, industrial, and commercial statistics:
Reserve bank credit, gold stock, money in circulation, etc
11-13
Member and nonmember bank credit—
All banks in the United States
All member banks
Weekly reporting member banks in leading cities
14,72,78-81
14
15, 71
Discount rates and money rates
17, 70
Bankers' acceptances, commercial paper, brokers' loans
15
Security prices, security issues, and security loans
Production, employment, car loadings, and commodity prices
Merchandise exports and imports
Department stores—Indexes of sales and stocks
Freight-car loadings, by classes
Financial statistics for foreign countries:
Gold reserves of central banks and governments
Gold movements
Foreign exchange rates 1923-1931
Bank for International Settlements
Central banks
Government note issues and reserves
Commercial banks
Discount rates of central banks
Money rates
Price movements—
Security prices
Wholesale prices
Retail food prices and cost of living
18
19, 82-84
20
20
20
52
53
54-57
57
58-60
61
61
62
62
1
63
64
64
Law department:
Deposits of public moneys by the United States which are exempt from reserve requirements
65
Detailed Federal reserve statistics, etc
Index
67-75
.._
IV
87
FEDERAL RESERVE BULLETIN
VOL. 18
REVIEW OF THE MONTH
Changes in the volume of reserve bank credit
in recent weeks have been influenced to a large
extent by unseasonal factors,
Kecen^changes a n ( j t i i e t o t a i volume of this
banks
credit outstanding has followed
a course different from that in
other recent years. From the third week of
October, when the outflow of gold following
England's suspension of the gold standard
came to an end, to the second week in December, there was a continuous decrease in reserve
bank credit reflecting chiefly a reduction in
member bank reserve balances and an inflow
of gold, mostly from Japan. Between December 9 and December 23 reserve bank credit
increased again, but by a considerably smaller
amount than is usual at that season, the increase
in money in circulation, which was larger than
seasonal, being offset in considerable part by a
continued decline in member bank reserve
balances and by some further imports of gold.
Finally, during the last week of the year, when
there is usually some decline in reserve bank
credit, there was this year an increase of
$200,000,000 reflecting the net effect of a less
than seasonal decrease of $100,000,000 in currency and an increase of $300,000,000 in member bank reserve balances due to anticipation
of year-end statements.
The course of reserve bank credit and of the
principal factors in changes in its volume is
shown on a weekly average basis for the period
1927-1931 on the chart.
Disregarding the last week, which was not
representative, member bank reserve balances
on December 23 were at
Members' reserve balances $2,000,000,000, the lowest level
since 1924. The decrease in
these balances began after July and for the
following five months amounted to about
$400,000,000, reflecting chiefly a large decline
in member bank deposit liabilities. Reserve
No. 1
JANUARY, 1932
balances, in fact, declined by a larger proportionate amount than did deposits of member
banks, both because excess reserves of more
than $100,000,000 held throughout the autumn
Mima* OF DOUAM
RESERVE BANK CREDIT
AND PRINCIPAL FACTORS IN CHANGES
5500
1000
1927
1928
1929
1930
1931
1932
Weekly averages of daily figures
were subsequently reduced, and because the
decrease in deposits was larger in demand
deposits, against which a higher reserve is
required, than in time deposits, against which
the required reserve is only 3 per cent.
Decreases in so-called net demand deposits
are influenced to a considerable extent by the
volume of deposits of country
Decrease in
banks that are redeposited with
bankers
balances
.
i
,
n
i
i
city correspondents, bucn deposits represent in part a duplication of deposits, and since they are held in
financial centers, where reserve requirements
are relatively high, they exert a considerable
influence on the member banks' requirements
for reserves. A chart is introduced at this
FEDERAL RESEKVE BULLETIN
JANUARY, 1932
point showing the volume of bankers' balances 15. At the end of the year total loans and
held by reporting member banks in New York investments of these banks were about $2,400,City and in other leading cities. During a 000,000 lower than a year earlier. This decrease
period of relative inactivity and slack demand reflected a reduction of $2,000,000,000 in secufor credit, these bankers7 deposits usually rity loans, and of about $1,100,000,000 in "all
accumulate in the financial centers, where they other" loans, largely commercial, while the
earn interest and at the same time are available banks' investments were $700,000,000 larger
to the depositing banks at any time. In than a year ago. The banks' holdings of inaccordance with the usual experience, these vestment securities increased rapidly during
balances showed an increase in 1930 and the 1930 and the first four months of 1931, offsetfirst part of 1931. Beginning with April of ting during that period the effect of the liquidation of bank loans on the total volume of
BANKERS' BALANCES
outstanding
member bank credit. From May
MILLIONS OF DOLLARS
MILLIONS OF DOLLARS
Monthly Averages of Weekly Figures )4000
4000
to September of 1931 the banks' investments
remained fairly constant, but during the last
3500
3500
three months of the year the banks sold a
Total
considerable
amount of their investments; this
3000
3000
X
2500
s*
\
2000
Other Leading Cities
2500
MEMBER BANKS IN LEADING CITIES
BILLIONS OF DOLLARS
25
/
BILLIONS OF DOLLARS
25
2000
V*'
1500
1500
New York City
1000
1000
500
500
1927
1928
1929
1930
1931
this year, however, as the banks in the interior
required their resources to meet the withdrawal
of deposits, bankers' balances turned down
sharply, particularly at banks in centers other
than New York, and toward the end of 1931
they were at the lowest level in several years.
As already stated, this decline in bankers'
balances was an important factor in reducing
the reserve requirements of member banks.
Total loans and investments of reporting
1931
1930
1927
1928
1929
member banks, which had begun to decline in
the latter part of 1930 and then decrease added to the decline in loans resulting
credit in 1931
h&d in c r e a s e ( l somewhat in the in a more rapid decline of the total volume of
first quarter of 1931, declined member bank credit. The chart shows the
steadily thereafter until the middle of December, course of total loans and investments, security
when they increased temporarily as the result Loans, all other loans, and investments of
of subscriptions to issues of United States reporting member banks in leading cities for
Government obligations offered on December the past five years.
JANUARY, ]
FEDERAL RESERVE BULLETIN
The decrease of member bank credit during
the past year was not accompanied by a
decline of reserve bank credit,
Reserve bank
which, on the contrary, incredit in 1931
creased and at the end of
1931 was close to the highest level in the past
10 years. The increase of $830,000,000 in
reserve bank credit over the year reflected
chiefly a growth of $740,000,000 of money in
circulation and a decrease of $135,000,000 in
the stock of monetary gold, together with an
increase in foreign bank deposits, offset to the
extent of about $150,000,000 by a net reduction
over the year in member bank reserve balances.
Of the increase in reserve bank credit over
the year the larger part was in the form of
discounts for member banks, which showed an
increase in every Federal reserve district. A
chart showing discounts by Federal reserve districts is shown at the end of this review. Bills
bought in the open market were at nearly
the same level at the end of 1931 as a year
earlier, while the reserve banks' holdings of
United States securities showed an increase of
$75,000,000 for the year.
In January the demand for reserve bank
credit usually declines as currency withdrawn
for the holiday trade flows back to the reserve
banks. This return flow, which begins after the
Christmas holiday, amounted to $100,000,000
during the last week of the year, but its effect on the volume of reserve bank credit was
more than offset by a temporary increase in
member bank balances. After the turn of the
year the reduction of these balances to their
previous level and a further return of currency
from circulation were reflected in a decline of
member bank indebtedness to the reserve
banks and of the reserve banks7 holdings of
acceptances.
Changes during recent weeks in the gold
reserves of the principal European countries
Gold reserves
have been relatively small.
in Europe
There was a further small loss
of gold by Germany and moderate additions
were made to the gold reserves of France, Switzerland, and Netherlands. Changes during the
year, however, have been large, including losses
of $290,000,000 by Germany and $130,000,000
by England, and gains of $600,000,000 by
France, $310,000,000 by Switzerland, $190,000,000 by Netherlands, and $170,000,000 by
Belgium. The Italian gold reserves changed
GOLD RESERVES OF SELECTED CENTRAL BANKS
[In millions of dollars]
Change from—
Country-
England
France
Germany
Italy
Belgium
Netherlands
Switzerland
Date (1931)
Dec. 30
Dec 31
_ Dec. 31
Nov. 30.
Dec. 22
_
Dec. 21
__ Dec. 23
reserves Month Year
before before
588
2,699
234
296
355
361
444
+40
+3
-1
+9
+19
—131
+590
-293
+17
+169
+190
+310
little during the year. The table gives in
millions of dollars the gold reserves of selected
central banks in Europe on the latest date for
which figures are available, with changes for
the latest month and for the year.
At the Bank of England an increase of
67,000,000 pounds in bankers' balances for
Foreign central ^ e m o n ^ °f December reflects
banks—Bank of the building up of reserves by
England
joint-stock banks in anticipation of year-end statements. Last year, when
the Bank of England statement was as of
December 31, bankers' balances were even
higher.
Notes in circulation also increased during
December in connection with Christmas trade,
although the increase this year has been less
than usual. The funds required during the
month for this increase in note circulation
and in bankers' balances were in part transferred from Government deposits at the bank.
These were heavily drawn upon in connection
with the service of the national debt. The
bulk of the funds, however, was supplied by
the bank's open-market purchases of securities,
although at the year-end the market also increased its borrowings by a substantial amount.
During the year as a whole the Bank of England
increased its holdings of securities by 44,000,000
pounds, an amount large enough to offset -the
loss of gold during 1931, and in addition to
enable the market to retire a substantial part
4
FEDERAL RESERVE BULLETIN
of its indebtness at the bank. The reduction
over the year in indebtedness at the bank,
however, reflects the repayment of the exceptional borrowings of December 31, 1930. Since
England's suspension of the gold standard in
September, discounts and advances have been
more than double the volume of a year ago.
The following table shows the principal items
in the Bank of England statement for December 30, with changes for the month and for the
year:
BANK OF ENGLAND
[In thousands of pounds sterling; figures preliminary]
Change from—
: Dec. 30,
' 1931
Nov. 25,
1931
Gold
Discounts and advances
Securities
Bankers'deposits
Other deposits.—
Notes in circulation
:
•
;
i
j
j
120,700 !
27,300 j
403,900 j
126,400 !
48,100 |
364,200 I
+14,600
+45,100
+66, 600
-17,100
+9, 700
Dec. 31,
1930
-26, 900
- 2 1 , 700
+43, 600
-6,100
+5,300
-4,700
During December the Bank of France revalued its sterling holdings. These had previBank of France °™&.been C a n 4 e d a * t h e l o w e r
gold import point—1. e., practically at par. It it estimated that in writing
them down to current exchange rates the bank
showed a loss of about 2,350,000,000 francs;
and this is reflected in the decline reported for
the month in the bank's foreign assets. To the
extent of 250,000,000 francs the loss was
absorbed immediately by the bank. The remainder, amounting to 2,100,000,000 francs,
was covered by bills of the independent amortization office (Caisse d'amortissement) turned
over to the bank by the Government. The
bills are noninterest bearing, and the bank will
contribute out of its profits to their amortization. The Government, however, will also
contribute from its budget an annual sum
equivalent to 1 per cent of the amount of the
biJls still outstanding.
Government deposits continued to decline,
and the transfers from this source—together
with some reduction of other deposits—were
sufficient not only to meet the 3^ear-end demand
for currency but also to pay off a moderate
amount of discounts and advances as well.
During the year as a whole the reduction in
Governemnt deposits has nearly offset the
growth of notes in circulation. The major
part of the reduction has been in Treasury deposits proper and has accompanied the disappearance of the surplus tax revenues charac-
JANUARY, 1932
teristic of previous years. Substantial use has
also been made, however, of the deposits of the
Caisse.
The outstanding development of the year
have been the growth of gold reserves and
"other deposits" at the Bank of France. Presumably the growth during the year in these
deposits has been largely in the balances of the
commercial banks. The leading commercial
banks have built up their cash ratio—i. e., cash
in vault and at Bank of France to deposits—
from less than 10 per cent to about 25 per cent.
The movement became pronounced early last
summer in connection with the international
crisis and was sharply accentuated following
England's departure from the gold standard
and the difficulties experienced by an important
financial institution in Paris. For the most
part it appears to have represented drafts by
the French banks upon their foreign assets
BANK OF FRANCE
[In millions of francs; figures preliminary]
Change from—
Dec. 31,
1931
I
Gold
Foreign exchange
Domestic discounts and advances.
Government deposits
Other deposits
Notes in circulation
.__
68,900
21,500
10,100
5,900
23,600
83,500
Nov. 27,
1931
+1,000
-2,800
-400
-1,300
-500
+ 1 , 000
Dec. 26,
1930
+15,300
- 4 , 700
-1,200
-6,800
+11, 900
+7,100
for the purpose of showing an impregnable
cash position at
home. It was accompanied
by a heavyflow1-of gold to France.
Gold and foreign exchange reserves of the
Reichsbank showed little change during December. The funds necessary to
ReiSank
provide for the year-end increase m note circulation and
in deposits were obtained by borrowing at the
REICHSBANK
[In millions of reichsmarks;figurespreliminary]
Change from—
Dec 31,
1931
Gold
Foreign exchange reserveDiscounts and advances..
Deposits
Notes in circulation
980
170
490
750
4, 780
Nov. 30, ! Dec. 31,
1931 i 1930
-20 i
+280
+ 250
+140
-1,230
—300
+1,660
+100
Reichsbank. The growth of circulation in the
second half of December was distinctly less than
usual this year—a fact which may be associated
with the salary and wage reductions ordered in
the decree of December 8.
FEDERAL RESERVE BULLETIN
JANUARY, 1932
Appointment of Class C Directors
During the year as a whole the most notable
development has been the heavy borrowing of
The Federal Reserve Board has appointed
the market at the Reichsbank for the purpose
of making payments abroad. The market has the following as Class C directors of Federal
borrowed 1,660,000,000 reichsmarks, and the reserve banks for the 3-year term beginning
Reichsbank has lost 1,530,000,000 reichsmarks January 1, 1932:
of reserves, from a volume of reserves already
Boston—Charles H. Merriman (reappointed).
New York—J. H. Case (reappointed).
seriously diminished as a result of the transfer
Philadelphia—Harry L. Cannon (reappointed).
of funds abroad following the September, 1930,
Cleveland—L. B. Williams (reappointed).
election. It is this development which has
Richmond—Robert Lassiter (reappointed).
necessitated the present measures of exchange
Atlanta—W. H. Kettig (reappointed).
Chicago—F. C. Ball (reappointed).
and credit control in Germany.
Appointment of Chief of Examinations Division
Effective January 16, 1932, Mr. Leo H.
Paulger was appointed chief of the division
of examinations of the Federal Reserve Board.
St. Louis—Paul Dillard (reappointed).
Minneapolis—George W. McCormick (reappointed).
Kansas City—H. M. Lang worthy.
Dallas—C. C. Walsh (reappointed).
San Francisco—William Sproule (reappointed).
Appointment of Chairmen and Deputy Chairmen
The Federal Reserve Board has designated
the following as Federal reserve agents and
chairmen of the boards of directors of Federal
The following changes in discount rates dur- reserve banks for terms of one year, beginning
ing the month ended January 1, 1932, have January 1, 1932:
been reported by central banks in foreign
Boston—Frederic H. Curtiss.
countries:
Changes in Foreign Central Bank Discount Rates
National Bank of Czechoslovakia—December 22,
1931, from Q}4 to 6 per cent.
German Reichsbank—December 10, 1931, from 8 to
7 per cent.
Election of Class A and Class B Directors
The member banks have elected the following as Class A and Class B directors of Federal
reserve banks for the 3-year term beginning
January 1, 1932:
CLASS A
Boston—Frederick S. Chamberlain (reelected).
New York—A. H. Wiggin.
Philadelphia—John C. Cosgrove (reelected).
Cleveland—Chess Lamberton (reelected).
Richmond—James C. Braswell (reelected).
Atlanta—E. C. Melvin (reelected).
Chicago—Edward R. Estberg (reelected).
St. Louis—John C. Martin (reelected).
Minneapolis—-Paul J. Leeman (reelected).
Kansas City—Frank W. Sponable (reelected).
Dallas—W." H. Patrick (reelected).
San Francisco—C. K. Mclntosh (reelected).
CLASS B
Boston—Edward S. French.
New York—William H. Woodin (reelected).
Philadelphia—C. F. C. Stout (reelected).
Cleveland—R. P. Wright (reelected).
Richmond—Edwin C. Graham (reelected).
Atlanta—J. B. Hill (reelected).
Chicago—S. T. Crapo (reelected).
St. Louis—W. B. Plunkett (reelected).
Minneapolis—W. O. Washburn (reelected).
Kansas City—J. M. Bernardin (reelected).
Dallas—A. S. Cleveland (reelected).
San Francisco—E. H. Cox (reelected).
New York—J. H. Case.
Philadelphia—Richard L. Austin.
Cleveland—George DeCamp.
Richmond—William W. Hoxton.
Atlanta—Oscar Newton.
Chicago—Eugene M. Stevens.
St. Louis—John S. Wood.
Minneapolis—John R. Mitchell.
Kansas City—M. L. McClure.
Dallas—C. C. Walsh.
San Francisco—Isaac B. Newton.
The Federal Reserve Board has appointed
the following as deputy chairmen of Federal
reserve banks for terms of one year, beginning
January 1, 1932:
Boston—Allen Hollis.
New York—Owen D. Young.
Philadelphia—Alba B. Johnson.
Cleveland—L. B. Williams.
Richmond—Frederic A. Delano.
Atlanta—W. H. Kettig.
Chicago—James Simpson.
St. Louis—John W. Boehne.
Minneapolis—Homer P. Clark.
Kansas City—H. M. Langworthy.
Dallas—S. B. Perkins.
San Francisco—Walton N. Moore.
Appointment of Governor at Kansas City
The board of directors of the Federal Reserve
Bank of Kansas City at its meeting on January 7, 1932, appointed Mr. George H. Hamilton
governor of the bank to succeed Mr. W. J.
Bailey, retired.
FEDERAL RESERVE BULLETIN
JANUARY, 1932
FEDERAL RESERVE BANK DISCOUNTS - BY DISTRICTS
MILLIONS OF DOLLARS
1927
MILLIONS OF DOLLARS
Weekly report date figures )
1928
1929
1930
1931
1927
1928
1929
1930
1931
JANUARY, 1932
FEDERAL RESERVE BULLETIN
SHIPMENTS OF AMERICAN CURRENCY TO AND FROM EUROPE
During the postwar reconstruction years,
when American currency w^as in demand as a
part of the circulating medium in certain
European countries whose currencies had
depreciated in value, a number of large banks
in New York City began reporting to the
Federal Reserve Bank of New York the
amounts of their foreign shipments and receipts
of American paper money. A summary of
these movements to and from European
countries is given in the accompanying table
for the period May, 1923, when the reports
were initiated, to the present time. These
figures will be published currently in the
FEDERAL RESERVE BULLETIN.
Almost all of the shipments made by American banks are included in these figures. Banks
outside New York City have few transactions,
and those New York City banks which report
regularly include all those whose shipments
are substantial. The number reporting has
varied from 11 to 14; in addition, the foreign
shipments and receipts of currency by the
Federal Reserve Bank of New York are
included.
Bank shipments do not measure the entire
movement of our paper currency to and from
Europe, however, because a considerable but
indeterminable amount is carried abroad by
American tourists, and some is sent in letters
from immigrants to their relatives in foreign
countries. Moreover, there is no adequate
record of shipments of our currency to nonEuropean countries. There is a substantial
volume in circulation in Cuba, where American
money forms the circulating medium; and
considerable amounts move back and forth
across the Canadian border.
The entire movement of currency to other
countries, however, is usually relatively unimportant in comparison with changes in demand
in the United States. The largest amount
received from Europe by American banks in
any one year—$59,000,000 in 1924—is not as
large as the increase in demand in this country
over a national holiday, such as the Fourth of
July. In certain months, however, European
shipments have been important, and the gradual return of American money from abroad in
the years prior to 1931 accounts in part for the
gradual decline in the volume of currency outside the Federal reserve banks and the
Treasury.
Ordinarily receipts by American banks from
Europe have exceeded their shipments, as the
chart shows, largely because of the fact that
American money carried out of the7 country by
tourists is not a part of the banks shipments,
but generally returns to this country through
banking channels, after having been exchanged
for foreign currency abroad and assembled by
foreign banks. The gradual return of American money from large stocks accumulated in
foreign countries in the early postwar years
has also been a factor in the excess of receipts
over shipments, especially from the early part
of 1924 to the middle of 1930.
Notwithstanding the incompleteness of the
returns, important movements are promptly
reflected in bank transactions. In the past
year there have been two unusual movements
of American currency—first a large export,
then a sudden return flow of considerable proportions. During the financial crises on the
Continent in the past summer, first in Austria
and then in Germany, large shipments of currency were sent abroad by American banks.
There was another outward movement in
September, following Great Britain's suspension of gold payments. The chart illustrates
the magnitude of these exports of American
money in contrast wath the small outflow in
preceding years. From May to September
exports amounted to $33,000,000. This outward movement continued, in fact, until the
middle of October, when there was a sudden
reversal at the time when gold w^as being
exported in large volume from the United
States. At that time some Europeans who
held American currency exchanged it for other
currencies; in Poland, for example, several
million dollars of American money were purchased in a few days from the Polish public by
the Polish banks. Sales of American paper
money lasted a brief time, but a considerable
volume of American money which had been
accumulated in the meantime was shipped to
the United States in subsequent weeks. After
the middle of November, however, the shipments became considerably smaller. The bulk
of this recently repatriated currency came from
banks in Germany, France, England, Switzerland, and Poland.
In 1923 American money was in use quite
widely in central Europe because of the rapid
depreciation of the German and Polish currencies. At that time, in fact, many European
currencies were declining to some extent in terms
of the dollar. In the period from May, 1923, to
February, 1924, there was a continuous export
8
FEDERAL RESERVE BULLETIN
of American money, amounting to over
$35,000,000. In the spring of 1924 the outflow
from this country stopped, and during the remainder of that year large sums were returned
from abroad as a resultof a number of favorable
financial developments which gradually restored confidence in European currencies. In
November, 1923, German currency was stabil-
JANUARY, 1932
European countries. As a consequence, during
the last ten months of 1924 nearly $60,000,000
in American currency was sent to New York
banks, and at the same time their shipments to
Europe practically ceased.
Late in 1925 and in the early part of 1926
American currency was again in demand abroad
for a brief period, at the time when Polish
S H I P M E N T S AND RECEIPTS OF AMERICAN CURRENCY
TO AND FROM EUROPE.
( Banks in N.Y. City )
Millions of Dollars
Millionso Dollars
10
1923
1924-
1925
1926
1927
ized through the creation of the Rentenbank
and the issue of rentenmarks, and in 1924 it was
more firmly established by the adoption of the
Eeport of the First Committee of Experts to
the Reparations Commission and by the subsequent acquisition of gold through the use of the
proceeds of the Dawes loan. Improvement
in currency conditions occurred also in other
1928
1929
1930
1931
currency was again declining in value and
when the French franc showed increasing
weakness on the exchanges. In the years 1927
to 1930 receipts at New York were somewhat
smaller than in 1924, but they continued
to be considerably larger than shipments to
foreign countries, which dwindled to small
proportions.
FEDERAL RESERVE BULLETIN
JANUARY, 1932
SHIPMENTS AND RECEIPTS OF AMERICAN CURRENCY TO AND FROM EUROPE BY SELECTED BANKS IN N E W YORK
CITY
[In thousands of dollars]
ShipNet shipments Receipts
ments
from
(—) or re- Year and month
to Eu- Europe
ceipts (+)
rope
Year and month
1923
January
February
March
April
May
June..
July
August
September
October
November
December
1926
481
1,692
1,122
1,146
535
577
1,462
344
2,696
899
2,966
1,607
7,535
2,950
j 3,075
i 3,570
Total(8mos.)j 25,298
1924
January—
February
March.
April
May
June___
July
August
September. _
October
November. _
December
7,3
- 2 , 215
+793
-1,844
-461
- 7 , 000
- 2 , 373
-1,613
-3,226
3,567
1,340
1,429
444
735
480
450
140
220
285
310
600
1,043
824
1,816
1,822
1,009
1,427
5,059
5,507
5,987
4,064
2,917
2,478
- 2 , 524
-516
+387
+1, 378
+274
+947
+4,609
+5,367
+5, 767
+3, 779
+2,607
+ 1,878
-17,939
Total.
10,000
33, 953
+23, 953
_ 5,487
| 5, 485
""
177
172
107
61
67
72 I
62 I
317
621
1,506
2,161
4,552
6,556
8,261
6,057
6,636
7,098
6,133
9,155
-5,170
-5,018
+1,021
+ 1 , 984
+4, 380
+6,449
+8, 200
+5, 990
+6, 564
+7, 036
+6, 064
+9,153
12,400
59,053
+46,653
September
October...
November...
December
Total
January
February
March
April...
May
June
July
August
September
October
November
December
Total
250
1,122 i
576
406
996
730
2,095
• 975
310
50
!
110
; 8,2
3,489 !
4,725
4,844
1,911
4,178
4,134
5,335
5,005 !
3,975 i
2,772 I
3,340 i
3,292 I
i
__
9,660
!
i
!
[
i
5,681
7,573
5,057
3,097
3,444
6,716
6,390
4,260
912
1,049
1,744
915
ji
+5,181
+7, 059
+5, 010
+3,097
+3,434
+6,679
+5,870
+4,054
-3,007
+147
+ 1 , 509
-1,855
January
February. _
March
April
May__
June
July
August
September .
October
November.
December..
460
400
1,458
740
1,075
300
210
415
185.
30
150
60
4,749
4,405
2,930
1,691
3,073
4,559
5,008
5,624
2,511
2,964
2,105
1,758
+4,289
+4,005
+1,472
+951
+1,998
+4,259
+4,798
+5,209
+2,326
+2,934
+1,955
+1,698
+37,178
Total
5,483
41,377
+35,894
j
Total
i 4,500
1930
i
January..
February
March...
April
May
;
June.
' July
! August
September
I October
j November
! December
47,000 ! +38,612 j
1928
500
514
47
0
10
37
520
206
I 3,919
J
902
! 235
i 2,770
+3, 239
+3, 957
+3, 722
+ 1,335
+3, 772
+3,138
+4, 605
+2, 910
+3, 000
+2, 462
+3, 290
+3,182
Net shipments
(—) or receipts (+)
January
50
February
;
20
March
:
6
April
833
May
__.!
7
June...
i 470
July
!
49
August
428
September
: 814
October.
_.! 1,626
November
'•• 63
December..
[ 134
1927
1925
February..
March
April
May
June
July
August
1929
January
February._
March
April
May.
June
_.
July
August
September.
October
November.
December..
I
Total _
January
ShipNet shipments Receipts
ments
from
to Eu- Europe
(—) or re- Year and month
rope
ceipts (+)
5
251
0
154
;
1
i
30
;
30
!
90
4,245
6,112
872
275
Total
| 12,065
1931
j
i January
! February
! March
!
i April.-.
II M a y .
i! J u n e . .
; July
i August...
;
September
! October
! November
• December
Total
470
130
_.
__
._._
1,380
915
2,570
8,811
10, 256
3,226
8,433
3,088
CO
1,523
40,854
+4,128
+2,419
+2, 687
—24
+579
+3, 026
+4, 356
+4, 423
+2, 231
+512
+ 1,104
+ 1,416
31,357 i +26,857
3,843 !
6,143 1
4,211 ; '
3,378
4,923 ;!
3,803
4,981 j
3,052
1,573
244
556
1,353
+3,838
+5, 892
+4, 211
+3,224
+4, 922
+3,773
+4, 951
+2, 962
- 2 , 672
- 5 , 868
-316
+1,078
38,060 i +25,995
4,051
960
863
1,469
2,103
779
394
3,723
3,290
11, 588
7 n^Q
i, uoy
3,749
40,008 j
+3,581
+830
-517
+554
-467
-8,032
-9,862
+497
-5,143
+8, 500
+6,987
+2,226
-846
10
FEDERAL RESERVE BULLETIN
JANUARY, 1932
NATIONAL SUMMARY OF BUSINESS CONDITIONS
[Compiled December 22 and released for publication December 24]
Industrial activity and factory employment
declined further from October to November,
reflecting in part the usual seasonal tendencies.
Continued gold imports and further reduction
in member bank reserve requirements during
November and the first half of December were
reflected in a considerable decline in the outstanding volume of reserve bank credit.
Production and employment.—In November
industrial production showed a somewhat larger
decrease than is usual at this season, and the
board's seasonally adjusted index declined from
73 to 72 per cent of the 1923-1925 average.
Activity declined at woolen mills, lumber mills,
and coal mines, while daily average output at
steel mills increased and volume of automobile
production showed less than the usual seasonal
decline from the low level of October. The
November increase in steel production was followed by a considerable decline in the first
three weeks of December. Output of petroleum increased further in November to a level
slightly lower than that prevailing last summer
before output was sharply curtailed.
Volume of employment in most manufacturing industries declined by more than the seasonal amount between the middle of October
and the middle of November. Reductions
were particularly large in the wearing apparel,
leather, and building-material industries, while
in the automobile and tire industries declines
were smaller than usual at this season.
The value of building contracts awarded,
as reported by the F. W. Dodge Corporation,
has declined further in recent months, and a
preliminary estimate of the board's seasonally
adjusted index for the last quarter of 1931 is 49
per cent of the 1923-1925 average, compared
with 59 for the third quarter, 65 for the second
quarter, and 79 for the first quarter of the year;
part of this decline in dollar volume reflects
lower building costs.
Production of principal crops in 1931 was
about 10 per cent larger than in 1930, according to the December crop report of the Department of Agriculture, while acreage harvested
was slightly smaller than a year ago. There
were large increases in the crops of cotton,
corn, winter wheat, apples, and peaches, while
the harvests of oats, barley, and rye were
smaller than last year; as in 1930, the hay crop
was unusually small.
Distribution.—Commodity distribution continued at about the same rate in November as
in October, the volume of freight-car loadings
showing a seasonal decline, while sales at
department stores increased by about the usual
amount for that month.
Wholesale prices.—The general level of
wholesale prices remained practically unchanged from October to November, according
to the Bureau of Labor Statistics index; prices
of grains, petroleum, and silver advanced, while
those of livestock and dairy products showed
declines, partly of a seasonal character. Between the middle of November and the middle
of December there were decreases in the prices
of many leading commodities, including livestock, meats, grains, sugar, silk, and silver;
during this period prices of copper and rubber
showed a decline, followed by a recovery.
Bank credit.—Volume of reserve bank credit
outstanding declined during November and the
first half of December and averaged $360,000,000 less in the week ending December 12 than
at its October peak seven weeks earlier. The
decrease was in large part in the banks' portfolio of acceptances, as discounts for member
banks and holdings of United States Government securities showed little change for the
period. The decline in total volume of reserve
bank credit outstanding during the period
reflected a growth of $100,000,000 in the stock
of monetary gold, largely through imports from
Japan, and a continued reduction in the reserve
balances of member banks, reflecting a further
liquidation of member bank credit. Demand
for currency declined during the last three
weeks of November and showed considerably
less than the usual seasonal increase in the first
half of December. After the middle of December, however, bank suspensions in New England
were followed by some increased withdrawals
of currency, part of which has begun to return.
Loans and investments of member banks in
leading cities continued to decline, and on
December 9 were $370,000,000 smaller than
four weeks earlier. The decrease
was equally
divided between the banks7 loans and their
investments. Deposits of these banks, both
demand and time, also showed a decrease, with
a consequent reduction in required reserves.
Money rates in the open market showed
little change from the middle of November
to the middle of December. Rates on prime
commercial paper continued at 3% to 4 per cent
while rates on 7 90-day bankers' acceptances
advanced from 2 /8 to 3 per cent on November 25.
11
FEDERAL RESERVE BULLETIN
JANUARY, 1932
FEDERAL RESERVE BANK CREDIT
RESERVE BANK CREDIT OUTSTANDING AND FACTORS IN CHANGES
[Averages of daily figures. In millions of dollars. For explanation see BULLETIN for July, 1929, pp. 432-438. For back figures see Annual Report
for 1930 (Tables 1, 2, and 3).]
Factors of decrease
Reserve bank credit outstanding
Month or week
Bills discounted
i TT i+~A ' Other
Bills
™ £ j
bought ! JurifLs
securities
reserve
bank
credit
Total
Factors of increase
NonMoney Member
Monetary Treasury
currency in
bank
member
circu- reserve
gold
(addeposits,
lation
stock
justed)
balances
etc.
Unexpended
capital
funds
i
1930—September
October
November
December
189
196
221
338
197
185
184
257
597
602
599
644
1,016
1,020
1,033
1,273
4,503
4,520
4,553
4,583
1,785
1,787
1,793
1,793
4,492
4,501
4,528
4,823
2,397
2,407
2,433
2,415
26
27
30
27
389
392
388
384
1931—January
February
March
April
May
June.July.__
August
September
October
November
December.
253
216
176
155
163
188
169
222
280
613
695
774
206
102
123
173
144
121
79
135
259
692
560
340
647
603
604
600
599
610
674
712
736
733
727
777
1,129
936
921
952
926
945
954
1,107
1,313
2,088
2,035
1,950
4,622
4,656
4,682
4,711
4,767
4,865 I
4,958
4,975
4,450
1,784
1,780
1,778
1,770
1,783
1,759
1,784
1,764
1,768
1,768
1,766
1,782
4,695
4,598
4,590
4,647
4,679
4,750
4,836
4,947
5,133
5,478
5,518
5,611
2,433
2,370
2,386
2,376
2,387
2,404
2,407
2,345
2,333
2,256
2,118
2,069
28
25
24
27
28
35
83
187
199
208
171
144
379
379
381
383
382
380
370
367
364
361
357
358
743 ! ,
738
718 j
842 '
487
435
385
319
281
727
718
721
853
796
1,954
1,945
1,897
1,949
1,991
4,402
4,423
4,438
4,455
4,467
1,773
1,772
1,777
1,804
1,786
5,486
5,527
5,529
5,599
5,727
2,114
2,091
2, 079
2,108
2,013
171
165
149
143
145
358
357
355
358
359
_..
_..
._
Week ending (Saturday)
Nov. 28
Dec. 5
Dec. 12
Dec. 19
Dec. 26
4,948
4,447
4,363
End of month series (in millions of
dollars)
1930
Wednesday series (in millions of
dollars)
Nov. i Dec.
1931
Dec. Dec. Dec.
16
23
30
25
i Dec. Aug. Sept. Oct. Nov. Dec.
31
30
31
30
31
! 31
Bills discounted
Bills bought
United States securities...
Other reserve bank credit..
Total reserve bank credit
Monetary gold stock
Treasury currency adjusted
251
364
729
29|
255
215
728
57
328
469
742
39
728
681
727
47
718
638
452j
339
717!
44
817
59
1,373' 1,255 1,578 2,183 1,9311 1,853
4,593| 4,995 4,741 4,292 4,414*4, 461
1,798! 1,729 1,773 1,767 1,7G9|» 1,759
Money in circulation
... 4,89o! 5,052 5,246 5,540 5,53612 5,648
Member bank reserve balances.. 2,471 2,373 2,3G4 2,167 2,051! 1,961
Nonmember deposits, etc
28; 189
120 181 1701 110
Unexpended capital funds
375 365 362 354 357 354
Bills discounted
i
Bills bought....
i
Special Treasury certificates
|_.
727, "717!
Other United States securities...
A"J\
Other reserve bank credit
!
47!
Total reserve bank credit 3
Monetary gold stock_
Treasury currency adjusted
717
AQ
698! 911 1,024
327
307i 257
198'.
708: 758
63; 79
48
; 1,941' 1,905; 1,880 1,974! 2,006 2,202
4,409; 4,417 4,437 4,458 4,465 4,458
i 1,774: 1,780, 1,777 1,811; 1,7601,761
!
i
j
M o n e y in circulation
j 5, 479: 5,509; 5,507
M e m b e r b a n k reserve balances..! 2,117 ! 2,073 2,086!
U n e x p e n d e d capital funds, n o n I
I
I
;
m e m b e r deposits, etc
i 527
520
501
5, 578: 5,733 5,633
2,168 2,001 2, 323
I
497
496
465
»Includes " O t h e r securities," foreign loans on gold, amounts due from foreign banks, and reserve bank float.
2
Figures preliminary.
3
Averages of daily figures for weeks ending on Wednesday, as follows (in millions of dollars): Nov. 18, 2,036; Nov. 25,1,961; Dec. 2,1,946; Dec. 9,
1,932; Dec. 16, 1,906; Dec. 23, 1,965; Dec. 30, 2,019.
12
FEDERAL RESERVE BULLETIN
JANUARY,
1932
ANALYSIS OF CHANGES IN MONETARY GOLD GOLD MOVEMENTS TO AND FROM UNITED
STOCK
STATES
[In millions of dollars]
[In thousands of dollars]
Analysis of changes
Gold
stock
Net re- Domestic
at end Increase
in stock Net gold lease
producof
month during import from-ear- tion,
month
etc. 2
mark *
|
Month
1930—December
4,593
Total (12 mos.).
1931—January
February—
March
April
_
May
-_
June
July
August
September.
October
November.
December P
4,643
4,665
4,697
4,726
4,798
4,956
4,949
4,995
4,741
4,292
4,414
4,461
Total (12 mos.)P.
22.1
32.7
305.4
280.2
49.4
22.0
32.0
28.7
72.4
158.0
-6.6
45.7
-254. 3
-448.4
122.0
47.1
34.4
16.1
25.6
49.5
49.6
63.8
19.5
57.5
20.6
-337.7
89.4
54.7
-132.1
|
|
I
!
!
|
!
i
|
I
!
-15.2
4.5
-4.4
32.0
11.9
3.1
3.3
2.5
3.3
3.0
-7.5 ! 3 -13. 3
3 18.8
4.0 i
1.9
92.3
-29.7 1
3.6
4.2
-16.0 !
-279.1 i
4.2
-3.1
-107.6 !
28.3 ;
4.2
15.4
-22.9 !
143.1 ! -320.8
45.6
1 Gold released from earmark at Federal reserve banks less gold placed
under earmark.
2 This figure, derived from preceding columns, represents the excess of
domestic production over nonmonetary consumption of gold—chiefly
consumption in the arts. In any given month, however, it may be
predominantly affected by the fact that on the final day of the month
(a) gold bullion or foreign gold coin recently imported may not yet have
reached a reserve bank of the Treasury, and (b) gold bulion recently
withdrawn from stock for export may not yet have been actually exported. The figures are subject to certain unavoidable inaccuracies in
official
reports of gold imports and exports.
3
$15,649,000 of gold bullion imported on Apr. 30 from France was not
purchased by the New York Assay Office until May 1.
v Preliminary figures.
1931
From or to—
December
(preliminary)
Imports
Exports
5,772
Belgium
England
. 4,588
15,077
France
65
Germany.198
Italy
10,869
Netherlands
Portugal
Sweden
904
Switzerland
4,087
Canada
Central America
912
M^exico
Argentina
2,035
Colombia
Ecuador
Peru
Urusuav
Venezuela
3,009
British India
China and Hong
497
Kong
Dutch East Indies
Japan
68, 201
Philippine Islands _
All other countries L_ 4,420
200
Total
2 87,749 2 33,085
JanuaryNovember
November
Exports
Imports
1
425
4
58
92
14
115
394
150
515
8
50
7,416
90
994
267
c
1
41
683
130
4,895
Imports
24
9,746
2,765
218
19,383 348,747
37,073
985
8
5,120
40,470
2,088
5,463
30
55 18, 553
76, 730
107
1,000
50
23, 975
3,052
141,263
13,074
911
7,438
1,082
6,080
933
4,899
1,644
351
75,973
299
1,747
33,681
4,840
42 131,042
3,290
8,682
3,018
94,430
4,994 522,610 434,143
Includes all movements of unreported origin or destination.
2 At New York—imports, $13,414,000; exports, $33,085,000.
where—imports, $74,335,000.
KINDS OF MONEY IN CIRCULATION
[In thousands of dollars]
[In millions of dollars]
Nov. 30,
1931
Dec. 31,
1930
63
42
3,790
1
RESERVE BANK CREDIT OUTSTANDING, IN
DETAIL
Dec. 31,
1931
Exports
Dec.
Kind of money
31,
1931 P
Nov.
30,
1931
Else-
Dec.
31,
1930
!
Reserve bank credit— total _
1, 853,402 1,930, 898 1,373,332
Bills discounted—total _
For member banks
For intermediate credit banks
For nonmember banks (secured by
adjusted-service certificates)
638, 293
626, 779
11,044
718,265
706,457
11,320
251,398
250,590
737
470
488
71
Bills bought-total
Payable in dollars—total
Bought outright
Under resale agreement...
Payable in foreign currencies _
338,687
305,258
224,220
81,038
33,429
451, 712
418,326
412,121
6,205
33,386
363, 844
327,861
288, 763
39,098
35,983
816, 960
. 771,931
| 45,029
717,031
717,031
729,467
686,064
43,403
59,462
43,890
28,623
26,185
500
4,463
8,662
19,652
25,330
500
4,397
8,724
4,939
6,300
United States securities—total
Bought outright
Under resale agreement
Other reserve bank credit—total
Intermediate credit bank debentures
Federal land bank bonds
Municipal warrants
Due from foreign banks
Reserve bank float *
1
Uncollected items in excess of deferred availability items.
843
704
20, 776
Gold coin
Gold certificates
Federal reserve notes
I
410
877
2,603
Treasury currency: J
Standard silver dollars
Silver certificates
Treasury notes of 1890
Subsidiary silver
Minor coin
United States notes
Federal reserve bank notes
National bank notes
383
928
2,463
368
1,118
1,641
33
387
1
272
117
294
3
655
37
404
1
281
119
296
3
623
Total Treasury currency
1,758
1,762
Total money in circulation..
5, 618
5,536
i For explanation of the term "Treasury currency" see BULLETIN
for July, 1929, p. 432.
v Figures preliminary.
13
FEDERAL RESERVE BULLETIN
JANUARY, 1932
MEMBER BANK RESERVE BALANCES
[Monthly averages of daily figures. In millions of dollars]
Reserves held
Month
Total—all New York
member
City i
banks
Excess reserves
Other
reserve
cities
" Country
banks
Total—all
member
banks
1930—December.
2,415
956
590
73
1931—January...
FebruaryMarch
April
*May
June
July
August
September.
October. __
November.
2,433
2,370
2,386
2,376
2,387
2,404
2,407
2,345
2,333
2,250
2,118
955
945
945
962
961
949
950
943
918
872
832
587
578
580
585
578
573
570
559
551
536
512
105
57
66
56
67
129
125
101
120
129
57
847
860
829
848
882
887
843
774
New York
City*
Other
reserve
cities
"Country'
banks
31
27
28
28
28
30
31
31
30
37
27
i Central reserve city banks only.
MEMBER BANK DEPOSITS
[Deposits subject to reserve. Monthly averages of daily figures. In
millions of dollars]
RESERVES OF MEMBER BANKS IN NEW YORK
CITY AND OTHER BESERVE CITIES,
BY WEEKS
[Averages of daily figures. In millions of dollars]
Novem- Octo- November,
ber,
ber,
1931
1931
1930
_L
NET DEMAND AND TIME DEPOSITS
28, 218 29,138
6,612 6,937
11,350 11,658
10, 256 10, 544
NET DEMAND DEPOSITS
_
_
16,358 16,859
5,653 5,872
6, 273 6,421
4,432 4,567
TIME DEPOSITS
Total—all member banks
New York City i...
Other reserve cities
"Country" banks.
1
11,860
959
5,076
5,825
_
Central reserve city banks only.
92948—32
3
12, 279
1,065
5,236
5,977
Sept. 25
Oct. 2
Oct. 9
Oct. 16
18, 959 Oct. 23
6,216 Oct. 30
7,370
5,372 Nov. 6
Nov. 13
Nov. 2 0 . . .
Nov. 27
14, 056
1,571 Dec. 4
5,847 Dec 11
6.637 Dec. 18 . . >
_.
Required Excess
Held
Required Excess
871
804
66.7
900
866
33.7
892
826
833
877
857
832
810
784
785
789
60.3
16.2
49.3
92.0
68.7
898
904
882
851
846
834
827
816
46.9
58.3
48.2
29.8
20.6
786
766
768
780
778
760
762
759
8.3
6.5
5.9
20.9
840
828
813
816
816
808
17.0
18.0
23.6
19.9
775
756
790
761
748
759
14.4
8.2
31.0
818
825
818
805
802
797
12.7
22.6
21.4
i Central reserve city banks only
8Sfl
CO
OO
Total—all member banks..
New York City i
Other reserve cities
" C o u n t r y " banks
33,014
7,787
13, 218
12, 009
Held
Other reserve cities
CO CC
00 OC
Total—all member banks
New York City i
Other reserve cities
"Country" banks
New York City i
Week ending (Friday)—
14
FEDEBAL RESERVE BULLETIN
JANUARY,
1932
ALL MEMBER BANKS—CLASSIFICATION OF LOANS AND INVESTMENTS
[Amounts in millions of dollars]
Total—all member
banks
New York City 1
Sept.
June
Sept.
29,
1931
June
30,
1931
Sept.
24,
1930
June
30,
1931
Sept.
24,
1930
Sept.
29,
1931
29,
1931
30,
1931
33,073
33,923
35,472
8,253
8, 287
8, 557
13,016
13, 567
599
457
466
250
169
284
247
18, 713
6,842
3,149
8,722
19,257
7,117
3,218
8,922
21,010
7,864
3,163
9,982
3,850
1,815
152
1,881
3,839
1,897
160
1,782
! 4,276
I 2,031
I
157
! 2,087
7,845
3,092
1,585
3,168
8,100
3,188
1,621
3,291
!
I
1,563
338
268
70
296
928
2,103
502
389
113
384
1,217
3,262
267
205
62
523
2,472
1,121
234
201
33
48
839
1,497
|
340
!
296
I
44
94
i
| 1,063
1,912
176
148
28
22
1,714
326
102
67
35
167
56
470
158
91
67
189
124
Investments—total
j
United States Government securities—!
Other domestic securities
j
Foreign securities.
!
12,199
5, 564
5, 973
662
12,106
5,343
6,121
642
10, 734
4,095
5,938
701
3,032 I 2,801
2,198
1,830 ! 1,656 ' 1,091
1,018 j 1,006 ! 1,004
184 i
139 !
103
4,561
2,301
2,092
169
4,750
2,408
2,177
Loans and investments—total _.
Loans to banks
Loans to other customers—total
Secured by stocks and bonds
Secured by real estate
Otherwise secured and unsecured _
Open-market loans—total
Acceptances of other banks—total.
Payable in United States
Payable abroad
Commercial paper purchased 2
Loans to brokers in New York
1
]
Central reserve city banks only.
2
150 !
!
i
!
!
j
"Country" banks
Other reserve cities
3,947
4,606
1,785 : 1,433
1,973 !I 2,864
188
309
164
4,589
1,219
2,961
409
Loans (secured by stocks and bonds) to brokers and dealers in securities in New York City.
ALL BANKS IN THE UNITED STATES—TOTAL LOANS AND INVESTMENTS, DEPOSITS
[In millions of dollars. Includes national banks, State commercial banks and trust companies, mutual and stock savings banks, and all private
banks under State supervision. For backfiguressee May BULLETIN (p. 253) and Annual Report for 1930 (Tables 42-43)3
Total loans and investments
All banks
Date
Total
1928—June 30
Oct. 3
Dec. 31
1929—Mar. 27
June 29
Oct. 4
Dec. 31
1930— Mar. 27
June 30
Sept. 24
Dec. 31
1931—Mar. 25
June 3 0 Sept. 29
57, 265
57,219
58,266
58,019
58,474
58,835
58,417
57,386
58,108
57,590
56,209
55,924
j 55,021
53,361
Loans
Investments
39,464
39, 671
40, 763
40, 557
41,512 I
42,201 !
41,898 I
40, 686
40,618 j
39,715 j
38,135
36,813
35,384
33, 752
17,801
17,549
17,504
17,462
16, 962
16, 634
16,519
16. 700
17,490
17, 875
18, 074
19. I l l
19, 637
19, 609
Total
Loans
35, 061
34,929
35, 684
35, 393
35,711
35,914
35, 934
35, 056
35, 656
35, 472
34, 860
34, 729
33, 923
33, 073
24, 303
24, 325
25,155
24, 945
25, 658
26,165
26,150
25,119
25,214
24, 738
23,870
22, 840
21, 816
20, 874
Deposits (exclusive of
interbank deposit?)
Nonmember banks
Member banks
Investments
10, 758
10,604
10, 529
10, 448
10,052
9,749
9.784
9,937 j
10, 442
10, 734
10,989
11, 889
12,106
12,199
Total
Investments
Loans
22, 204
22, 291
22, 582
22, 626
22, 763
22, 922
22, 483
22, 331
22, 453
22,118
21, 349
21,195
21, 099
20, 288
15,161
15, 346
15, 607
15, 612
15,853
16, 036
15, 748
15.568
15, 404
14, 977
14,264
13, 974
13, 568
12, 877
7,043
6,945
6, 975
7,013
6,910
6,885
6,735
6,763
7,048
7,141
7,085
7.222
7, 531
7,410
Mem- Nonber member
banks banks
All
banks
32,133
53,398
32,138
53, 720
34, 826
56, 766
33,215
54, 545
53, 852
32, 284
55,180
33, 004
55, 289
33,805
53,185
32, 082
54,954
33, 690
52,784
31, 839
53,039
32, 560
51,427
31,153
51,782
31, 566
49,152 !• 29, 469
21,265
21, 582
21,940
21, 330
21,567
22,176
21,424
21,103
21,264
20, 945
20, 479
20, 274
20, 216
19, 682
NUMBER OF BANKS, BANKING OFFICES, BANKS OPERATING BRANCHES, ETC.
[For additional detail—and certain statistics of banks in groups or chains—see BULLETIN for December, 1930, pp. 766-768 and 811-817]
Banks operating branches
Single-office banks
Banking
offices
(banks
plus
branches)
Date
1925—Dec.
1926—Dec.
1927—Feb.
June
1928—June
1929—June
Dec.
1930—June
Dec.
1931—June
31_.
31
25 2
30
30
30
31
30
31
30
_
28,257
27, 377
26, 973
26, 781
25, 950
25,115
24, 630
23,852
22, 769
21,903
30,899
30,158
29, 873
29, 775
29,180
28, 555
28,177
27,470
26, 308
25,480
Member
! National
27,472
26, 581
26,194
25, 989
25,115
24,297
23, 808
23,035
21, 993 i
21,107
7,916
7,760
7,677
7,638
7,516
7,366
7,237
7,082
6,872
6,636
Nonra ember
Member
Total
State
1, 245
1,160
1,133
1,123
1,058
987
939
899
859
827
Nonmember
National
Banks
18,311
17,661
17,384
17, 228
16, 541
15,944
15, 632
15,054
14, 262
13, 644
132
146
145
152
169
164
166
165
161
164
Branches
332
406
390
722
941
993
1,027
1,041
1,106
1,110
State
Banks
196
194
189
186
186
190
180
169
160
155
Branches
1,277
1,366
1,560
1,301
1,220
1,298
1,299
1,308
1,286
1,287
Banks
457
456
445
454
480
464
476
483
455
477
Branches
1,033
1,009
950
971
1,069
1,149
1,221
1,269
1,147
1,180
* All banks in the United States; includes national banks, State commercial banks and trust companies, mutual and stock savings banks and
all private banks under State supervision.
» Date of the McFadden Act; see BULLETIN for May, 1927.
15
FEDEKAL KESERVE BULLETIN
JANUARY, 1932
REPORTING MEMBER BANKS
BROKER'S LOANS
[In millions of dollars. Monthly data are averages of weekly figures]
REPORTED BY THE NEW YORK STOCK EXCHANGE
[Net borrowings on demand and on time. In millions of dollars]
Loans and investments
Borrowings at
F.R.
banks
Loans
on
securities
Month or date
End of month
BY MONTHS
Total:
1931—January.
February _.
March..
April.
May..
JuneJuly.
August .
September..
October
_
November
December
New York City:
1931—January
February
March
April
May
._
June
July.._.
August
September
October
November
December
Other leading cities:
1931—September....
October
November
December
22,660
22,659
22,839
22,942
22,713
22,439
22,393
22, 093
22,078
21,425
21,023
20, 749
January
February
March
April
May
June
July
August
September.
October
November...
December..
7,495
7,315
7,302
7,157
6,998
6,770
6, 631
6,480
6,413
5,971
5,859
5,763
8,399
8,242
8,150
8,040
7,893
7,853
7,964
7,900 i
7,870
7,679 i
7, 586
7,441
3,111 ,
3,079
3,176
3,080
3,039
2,846
2,764
2,640
2,657
2, 369
2,277
2,237
2,472
2,410
2, 295
2,242
2,194
2,204
2,365
2,370
2,375
2,272
2,243
2,218
2,323
2,476
2,504
2,567 .
2,642 !
2,644 |
2,651
2, 623
2,712
2,825
2,738
2,710
1, 254
1, 353
1,391
1,414
1,460
1,523 '
1,608 i
1,600
1,652
1,750 i
1,705
1,732 ;
3
3
74
16
83
3,
3,
3,
3,
5,495
5,407
5,343
5,223
5,083
4,950
4,840
4,835
2,502 !
2,421 !
2,367
2,395 i
124
324
388
416
7,543 |
7,477 i
7,472 i
7,386 i
7,327
7, 506
7,427
7,751
7, 615
7, 428
4,033
3, 997
4,336
4,208
4,060
424
428
392
567
685
2,249 2,693 1, 676
2,215 2,639 ; 1, 657
. 2,243 2,807
: ; 1,836
2,231 ! 2,189 2,755
;
! 1,778
2,295 I 2,197 !
2,655 i 1,712
I
3, 568 5,294 4,813 ! 2, 357
3, 550 5, 262 4,788 i 2, 340
3, 533 5, 228 4,944 i 2,500
3, 502 5,197 4,860 j 2,430
3,482 5, 130 4,773 2,348
14
12
98
289
7,906
7,965
7,975
7,889
7,875
7,694
7,780
7,633
7,744
7, 466
7,258
7,165
14,334
13,959
13, 765
13, 584
756
602
582
526
20,856
! 20,664
! 20,963
'• 20,734
i 20,532
5,807
5, 760
5,740
5, 733
5, 777
7,181
7,004
7,258
7,175
7,147
2, 239
2,210
2,,208
-.
13,675
13,600
13,705
13,559
; 13,385
410
416
392
469
396
I
r
1931
1930
1931
3,985
4,168
4,656
5,063
4,748
3,728
3,689
3,599
3,481
2, 556
2,162
1,894
1,720
1,840
1,909
1,651
1,435
1,391
1,344
1, 354
1,044
796
730
587
3,368
3, 529
4,026
4,409
4,139
3,201
3,227
3,109
3, 057
2,299
1,928
1,694
1,557
1,646
1, 692
1,466
1, 293
1,221
1,171
1,160
932
688
582
455
1930
616
639
631
654
€09
527
462
489
425
257
234
199
1931
I
;
!
I
!
|
!
163
194
217
185
141
170
173
194
112
108
148
132
Back figures—See Annual Report for 1930 (Table 57).
Month or date
Revised.
Tot!
1931—January
y
Dec.
Dec.
Dec.
Dec.
Dec.
For ac- j
For
count of! For acown ac- out-of- ! count of
count * town 2 i others
banks \
l i 132
1,798
1, 186
1, 759
1,858 1 1, 335
1,824 ! !» 322
1,644 ' 1, 279
1,464 1 1, 110
1,434
1, 062
1,342
951
1, 268
943
674
921
802
588
655
554
February.
March
April
May
June
July..
August
September..
October
November..
December. .
i
.
i
!
!
1930
MADE BY REPORTING MEMBER BANKS IN N. Y. CITY
[In millions of dollars. Monthly data are averages of weekly figures]
BY WEEKS
Total:
1931—Dec. 2
Dec. 9
Dec. 16
Dec. 23
Dec. 30
New York City:
1931—Dec. 2
Dec. 9
Dec. 16
Dec. 23
Dec. 30
O t h e r leading cities:
1931—Dec. 2
Dec. 9
Dec. 10
Dec. 23
Dec. 30.
From New
From private
York banks banks, brokers,
and trust com- foreign banking
agencies, etc.
panies
Total
2..
9...
16.
23.
30.
720 I!
690
662 !
611
591
567
552
555
553
544
329
290
264
271
191
181
204
226
174
90
124 !
88 |
132
117
98
51
41
i
!
j
I
337
283
259
231
174
173
168
165
151
157
3 90
13
21
21
9
7
1 Weekly reporting member banks in N%w York City.
2 Member and nonmember banks outside New York City (domestic
banks
only) includes unknown amount for customers of these banks.
3
New clearing-house rule relating to "Loans for account of others"
became etlective Nov. 16; see p. 657 of BULLETIN for December, 1931.
Back figures—See Annual Report for 1930 (Table 56).
ACCEPTANCES AND COMMERCIAL PAPER
[In millions of dollars]
Bankers' acceptances outstanding (dollar acceptances)
Held by Fedenil reserve banks
Held by group of accepting banks
End of month
Total
1930
January
February
March
_
April.
Mav
June
July
1, 693
1,624
1,539
1,414
1,382
1, 305
1, 350
1,339
1,367
1,508
1,571
1,556
For own
account
For account
of foreign correspondents
Held by
Total
O w n bills
Bills bought
others
Commercial
paper outstanding
; 1930
1931
1930
1931
1930
1931
1930
1931
1930
1931
1930
1931
1930
1,520 ! 293.3
269. 2
1,520
277.3
1,467
208.5
1,422
184.0
1,413
126. 8
1,368
1,228 i 129.0
167. 0
1,090
207.7
996
1,040 i 141.3
1,002 143. 0
327.9
89 3
85.0
123.2
161. 6
124.4
95.0
39.0
70.1
419.7
647.3
418.3
525. 9
503. 0
482.5
465. 5
462.8
469. 7
479.2
470.7
431.6
433.1
428.8
439.3
447.4
456.0
430.8
408.9
380.2
340.8
243.0
228. 0
100.1
99.3
126.4
220. 5
182.9
166. 7
157.5
165.6
205.1
278.6
267. 3
316.7
384.2
493.0
371.5
571.4
549.5
472.2
410.2
464.2
553.5
668. 0
606.5
409.9
230.4
296.2
63.1
70.7
71.9
54.7
b2.6
63.7
62.5
95.1
130.9
172.4
180.2
89.6
134.0
151.4
130.9
125.0
171.4
196.2
231.7
168.0
161.6
112.3
124.7
157.3
112.2
94.7
102.8
103.0
141.4
216.1
172.2
185.8
211.8
312.8
281.8
437.4
398. 2
341.3
285.3
292.8
357.4
436.3
438.5
248.3
118.1
171.4
653.2
668.8
612. 9
582.2
569.8
503. 3
462.9
434.4
410.8
549.7
506. 6
417.4
411.9
429. 5
440.8
441.3
444.2
378.7
278.0
185.4
66.3
63.0
162.0
404
457
529
553
541
527
528
526
513
485
448
358
1931
1931
327
315
311
307
305
292
289
271
248
210
174
August
September
October . .
November
December..
Figures for acceptances outstanding (a n ( j held by accepting banks) from American Acceptance Council; for commercial paper as reported by
about 20 dealers.
16
FEDERAL RESERVE BULLETIN
INTERBANK LOANS: MEMBER BANK LOANS
TO BANKS
[In millions of dollars]
Date
1929—Mar. 27
June 29
Oct. 4
Dec. 31
1930—Mar. 27
June 30
Sept. 24
Dec. 31
1931—Mar. 25
June 30.
Sept. 29
Total
548
670
640
714
527
535
466
631
446
457
599
509
621
595
669
462
474
404
569
388
397
535
_.
-
BANK SUSPENSIONS
By
other
In New In Chi- In other member
2 reserve
York
City a cago cities 3 banks
62
67
68
88
58
50
41
55
41
70
65
251
314
302
322
199
196
169
283
154
150
250
39
49
45
45
65
62
62
62
58
60
64
196
241
225
258
205
228
193
231
194
177
219
1 Member banks in 62 legally designated cities: 2 central reserve cities
(New
York and Chicago) and 60 other reserve cities; see table on p. 72.
2
3 Central reserve city banks.
Other reserve city banks; see table on p. 72.
1932
[Banks closed to public on account offinancialdifficulties by order of
supervisory authorities or directors of the bank. Figures of suspensions include banks subsequently reopened]
By reserve city banks *
Total,
by all
member
banks
JANUARY,
Number of banks
Deposits (in thousands of dollars)
Month
1928 1929 1930 1931
January
February
March.
April
May
June
July
August
September
October
November
December
Year
r
_
64
_
491
1928
1929
1930
10,983
18, 352
16, 953
8,190
6,394
13,496
5,368
6,147
7,888
9,011
24, 784
11, 076
16,413
21, 746
9,002
7,790
24, 090
19f 219
66,161
8,532
10, 050
13,153
1931
28, 903
32,800
23, 769
33,388
19, 315
70, 566
32, 333
21,951
23, 666
24, 599
22, 646 186, 306
15, 730 367,119
78,130
35,123
35, 285
42,417
43, 963
195, 951
41, 334
182, 248
236, 511
'479,831
r
69,402
319, 289
1, 345 2, 290 138, 642 234, 532 864, 715 1,759,484
Revised.
Backfigures.—SeeAnnual Report for 1928 (Table 64).
MEMBER BANK HOLDINGS OF ELIGIBLE ASSETS (GOVERNMENT SECURITIES AND ELIGIBLE
PAPER) COMPARED WITH BORROWINGS AT FEDERAL RESERVE BANKS
[In millions of dollars. Backfiguresnot available]
Holdings of Government securities * and eligible paper (including paper under rediscount)
By reserve city banks *
By all member banks
By other banks
Date
1927—June 30..
1928—June 30..
Oct. 3 . . .
Dec. 3 1 . .
1929—Mar. 27..
June 29-.
Oct. 4 . . .
Dec. 3 1 . .
1930— Mar. 27..
June 30-.
Sept. 24.
Dec. 31..
1931—Mar. 25.
June 30-.
Sept. 29.
U.S.
Government securities 1
Eligible
paper
2,299
2,714
2,823
2,730
2,832
2,577
2,469
2,403
2,619
2,640
2,682
2, 777
3,584
3,871
' 3,942
2,775
2,680
2,551
2,349
2,582
2,688
2,865
2,713
2,542
2,285
2,271
2,100
2,045
1,870
1,787
Total
5,074
5,394
5,374
5,079
5,414
5,265
5,334
5, 116
5,161
4,925
4,953
4, 877
5,629
5,741
r 5, 729
U.S.
Government securities 1
Eligible
paper
847
862
914
932
974
929
912
814
818
772
764 j
708
776
836
994
!
1,992
1,967
1,817
1,811
1,761
1,773
1,733
1,684
1,662
1,620
1,541
1,438
1,373
1,328
r 1, 209
u. s.
Total
2,839
2,829
2,731
2,744
2,735
2,702
2,645
2, 498
2,480 I
2, 392
2,305
2,146
2.149
2,164
r 2, 203
Government securities l
3,146
3, 576
3,738
3,662
3,807
3,506
3,381
3,217
3,438
3,412
3,446
3,485
4,360
4,707
4,936
Eligible
paper
4,767
4,647
4,368
4,160
4,343
4, 461
4,598
4,397
4,204
3,905
3.812
3,538
3,418
3,198
* 2,996
Total
7,913
8,223
8,106
7,822
8,150
7,968
7,979
7,614
7,642
7,317
7,258
7,023
7,778
7,905
' 7,932
Member
bank
borrowings at
Federal
reserve
banks
441
1,096
1,020
1,041
981
1,029
899
646
206
274
173
248
165
147
323
1
Exclusive of approximately $650,000,000 of Government securities pledged against national bank note circulation.
2 Member banks in 62 legally designated cities: 2 central reserve cities (New York and Chicago) and 60 other reserve cities; see table on p. 72.
r Revised.
MEMBER BANK BORROWINGS AT FEDERAL
RESERVE BANKS
OPEN-MARKET RATES
RATES IN NEW YORK CITY
[Monthly averages of weekly figures. In millions of dollars]
Member
banks
outside
leading
cities i
Total 1
Month
New York
City
Other leading cities
1930
1931
1930
1931
1930
1931
1930
462
371
247
225
226
222
218
196
186
193
211
308
245
209
173
146
149
185
168
214
284
627
684
815
39
21
1
17
11
5
5
2
4
9
8
6
26
3
3
74
Ifj
83
208
152
80
54
48
48
53
39
35
50
65
115
77
55
35
26
28
56
44
72
124
324
388
416
215
198
166
154
167
169
165
153
142
137
140
167
163
152
138
120
121
129
124
139
157
229
280
316
FEDERAL RESERVE BANK RATES
DISCOUNT RATES
[Rates on all classes and maturities of eligible paper]
Federal reserve bank
Date established
Previous
rate
Oct. 17,1931 ;
Oct. 16,1931 I
Oct. 22,1931 •
Oct. 24,1931 j
Oct. 20,1931 |
N o v . 14,1931 |
Oct. 17,1931 i
Oct. 22,1931 '
S e p t . 12,1930 |
Oct. 23,1931 |
Oct. 21,1931 i
4
do
i
3H
Boston
New York
PhiladelphiaCleveland
Richmond
Atlanta
Chicago
—
St. Louis
Minneapolis.-_
Kansas City..Dallas
San Francisco .
Call loans t
Prime
commercial
paper,
4 to 6
months
Month or week
1931
1
Includes (in small amounts) discounts by Federal reserve banks for
nonmembers: (1) Bills discounted for intermediate credit banks and
(2) notes secured by adjusted-service certificates discounted for nonmember banks.
! Rate in
j elTect on
!
Jan. 1
1930
November,
December
Prime
bankers'
acceptances,
vu
days
2^-3
2^-3
IK 2 -2H
Week e n d i n g N o v. 28
Dec. 5
D e c . 12
D e c . 19
D e c . 26
2%-3
2J4-2H
1%-2M 1.50
1.50
1^-2
2 -2H 1.56
2lA
1.57
1H
m~2 1.45
2 -IVA
7
2
1.50
A
2
1.50
2
1H-1H 1.50
1.50
2
Vs-VA 1M-2
2.10
2 -4H 1H-3K 2^-4
2.50
3M-4H 2Ji-3H 3 -4
2.73
3 -4
3
3M-4
_
•
j
j
|
;
i
SW
do
BH\
ZH\
3H
do
do
do.
1.24
1.06
« 1.38
L49
.88
4.55
.41
.42
4.45
1.70
1.77
*2.41
3.33
3.40
3.39
3.38
3.31
3.30
3.32
3.34
3.42
3.71
3.69
3.92
m-m
3U-4
2K-3
33/4-4
3M-4
3M-4
3%-4
3
3
3
3
3 -3M 2.50
3 -3M 2.50
3 -3M 2. 50
3 - 3 H 2.55
3.00
3 -4
2.50
2.50
2. 50
2.50
3.00
1.85
1.99
2.06
* 2. G7
2.G8
3.73
3.77
3.86
3.94
3.96
[Weighted averages of prevailing rates]
m
2H
2M
2tf
3
Higher rates may be
NOTE.—Rates on prime bankers' acceptances.
charged for other classes of bills.
Back figures.—See Annual Report for 1930 (Table 34)
_.
1.57
1.50
L. 55
L 52
L45
L. 50
L. 50
L. 50
1.50
2.10
2. 50
2.70
RATES CHARGED CUSTOMERS BY BANKS IN
PRINCIPAL CITIES
Previous
rate
3
Nov. 20,1931
3 i
do
3 |
do
3Hj Oct. 16, 1931
3.32
3.34
Back figures.—See Annual Report for 1930 (Tables 38 and 37).
BUYING RATES ON ACCEPTANCES
(Buying rates at the Federal Reserve Bank of New York]
j
1.40
* 1.48
Stock exchange call loans; new and renewal rates.
Stock exchange 90-day time loans.
3 issues—3^, 3^4, 4 per cent; yields calculated on basis of last redemption
dates—1947, 1956 and 1954.
4
Change of issues on which yield is computed.
Back figures.—See Annual Report for 1930 (Table 33).
1-15 days
16-30 days
31-45 days
46-60 days
61-75 days
76-90 days
91-120 days
121-180 days
2.00
2.23
1931
January
February
March
April
_ __
May.
..
June ._
July
August
September
October
November.
December
Month
Date established
2.00
2 -2M 2.27
New York City
Rate in
-fleet on
Jan. 1
U.S.
Treasury
Time
notes Treasloans,
ury
and
90
Redays * New newal certifl- bonds'
cates,
3 to 6
months
1
2
3
3H
Maturity
Average rate Average yield
on—
on—
Prevailing rate o n -
Reporting member
banks in leading cities
January
February
March
April
May
June _ _.
July
August
September
October
_ _
November
December
17
FEDERAL RESERVE BULLETIN
JANUARY, 1932
January
February
March
April
May
June
July
August
SeptemberOctober
NovemberDecember...
8 other
northern and
eastern cities
1929
1930
1931
1929 ! 1930
5.74
5.73
5.81
5.85
5.88
5.93
5.88
6.05
6.06
6.08
5.86
5.74
5.64
5. 35
fi. 22
4.91
4.74
4.59
4.48
4.41
4.29
4.26
4. 17
4.16
4.24
4. 31
4.20
4.17
4. 11
4.13
4.05
3.97
3.93
4. 27
4.67
4.64
5.87
5.86
5.91
6.00
6.09
6. 02
6.08
6. 11
6. 24
6.25
6. 12
5.94
5.88
5.66
5.47
5. 22
5.13
5.06
4.81
4.79
4.74
4.75
4.66
4.68
27 southern and
western cities
1931
1929
1930
4.61
4.63
4.62
4.57
4. 55
4.49
4.48
4.47
4.48
4.62
4.87
4.91
5.94
6.96
6.04
6. 07
6. id
6. 16
6. 17
6.22
6.27
6.29
6.29
6.20
6.12
6.04
5.98
5.86
5. 75
5.89
5.62
5.57
5.54
5.53
5.49
5.42
1931
NOTE.—Figures relate to rates charged by reporting banks to their
own customers as distinguished from open-market rates (which are
given in preceding table). All averages are based on rates reported for 3
types of customer loans—commercial loans, and demand and time loans
on securities. The method of computing the averages takes into account
(a) the relative importance of each of these 3 types of loans and (6) the
relative importance of each reporting bank, as measured by total loans.
In the two group averages the average rate for each city included is
weighted according to the importance of that city in the group, as
measured by the loans of all banks in the city.
Back figures.—See Annual Report for 1930 (Table 39).
18
FEDERAL RESERVE BULLETIN
JANUARY, 1932
SECURITY PRICES, SECURITY ISSUES, AND SECURITY LOANS
SECURITY PRICES
Mndex numbers of Standard Statistics Co. Monthly data are averages of weekly figures]
Common stocks (1926«100)
PreBonds1 ferred
stocks*
Month or date
Selected groups of industrial issues
Rail- Public
CopTotal IndusElec- Matrial road utility Auto- Building Chain Chem- per trical coinmobile equip- store ical
and equipment
brass ment
ery
Oil
JDteei
Textile
Number of issues.
20
404
337
33
34
13
13
17
9
9
4
10
16
10
30
1930—NovemberDecember. .
1931—January
February...
March
April
May
June
July
August
SeptemberOctober
November..
December..
124.7
121.7
123.8
124.8
126.4
125.3
122.6
119.7
121.1
120.7
116.1
109.4
108.5
99.1
117
109
112
120
122
109
98
95
98
96
82
70
72
58
109
102
103
110
112
100
89
87
90
89
76
65
68
54
102
94
100
105
97
87
77
74
75
66
56
48
46
33
167
158
163
178
189
170
156
153
158
154
132
112
115
96
101
100
106
120
129
117
110
101
105
103
85
70
75
65
77
71
74
78
81
70
59
58
60
58
47
38
39
31
82
78
78
86
90
86
89
89
89
92
80
70
69
57
176
168
162
174
173
148
127
128
131
127
110
90
96
79
91
80
82
91
96
79
67
62
86
61
50
43
45
35
196
182
176
194
201
172
159
157
161
155
132
113
114
94
120
117
120
126
125
109
89
83
88
84
72
59
61
46
97
88
89
91
85
74
63
63
67
70
60
53
57
44
131
125
124
132
133
116
94
85
88
81
72
59
59
41
55
51
53
55
58
52
47
45
46
45
40
36
36
31
105. 6
104.9
103.1
96.8
95.7
95.1
66
63
61
55
55
55
62
60
57
51
51
52
39
36
34
31
32
32
107
104
101
91
91
92
70
68
65
63
63
65
37
35
32
27
29
30
64
63
62
54
53
54
88
87
81
74
77
77
39
41
37
32
35
32
101
102
96
90
89
92
56
52
48
43
44
44
52
50
48
42
40
40
53
48
47
37
36
36
34
33
32
31
30
29
Nov. 25..
Dec. 2 . . .
Dec. 9 . . .
Dec. 16..
Dec. 23..
Dec. 30..
SO. 2
78.8
i Average price of 60 high-grade bonds adjusted for differences in coupon r a t e and m a t u r i t y .
20 high-grade industrials; average price.
CAPITAL ISSUES
TOTAL REPORTED SECURITY LOANS
[Exclusive of refunding issues. In millions of dollars]
[In millions of dollars]
Domestic issues »
i Total,
i domesYear and month i tic and
! foreign T o t a l «
1922
1923
1924
1925..-.
1926...
1927
1928
1929
1930
j
,
_-J
!
;
1930—November... j
December
j
1931—January
February
March
April
May
June
July
August
September.._
October
N o v e m b e r . _.
4,395
4,440
5,557
6, 205
6,282
7,489
7,979
10,005
6,918
249
384
420
211
*961
•837
352
•574
228
* 200
•725
* 45 I
* 101 !
3,631
4,019
4,588
5,129
5,157
6,152
6,723
9,334
6,013
Corporate
i
Foreign
Govissues J
ern- I B o n d s j
m e n t \ (and j Stocks
i notes) ;
i
'
:
!
,
|
248 '•
365 |
334
202
•959
•794
333
• 535
226
* 200
4
701
•45
•161
'!
!
!
|
!
j
!
I
!
'
!
1,072
1,043
1,380
1,356
1,312
1,423
1,387
1,398
1,441
i
i
•;
:
I
I
|
1,645
1,989
2,200
2,452
2,667
3,182
2, 378
2,068
2,980
570
659
829
1,152
1,087
1,460
2,900
5, 868
1,503
764
421
969
1,076
1,125
1,337
1,251
671
905
86
186
117
93
18
71
1
19
49
119
• 685
•526
172
•429
96;
235
48
250
166
132
100
113
34
94
45
27
• 1M •
•595 i
• 16 i
• 105 '
14
26
9
102
29
6
2
12
12
4
24
By
other
lenders i
By member banks
Call date
Total*
™
To
To
To j
brobrobrokers in kers ' « . {T, " kers in
New
else- ! o t n e r s N e w
York- w h e r e '
York
City
City»
-I-
A
1928—Oct. 3
Dec. 3 1 . . .
.112,429 8,819 | 274 1,899 850 ! 5,796
_;14,O52 10,172 I 269 | 2,556 975 ! 6,373
1929—Mar. 2 7 . . .
J u n e 29....
Oct. 4
Dec. 3 1 . - .
J14, 643
9,693
.115,144 10,094
.! 16,954 ,10,314
.112,955 110, 505
274 1,879 1,014
335 2,025
921
320 1,885 939
357 1,660 803
1930—Mar. 2 7 . . .
June 30...
Sept. 24—
Dec. 3 1 . . .
_ i 12, 544
.' 12,085
.111,701
. [ 10, 364
260
230
175
315
2, 344
2 365
2,472
1, 498
706
819
774
675
219
229
311
1 630
1 217
928
1931—Mar. 2 5 . . .
June 3 0 . . .
Sept. 2 9 . . .
10.334
110,655
ilO, 511
i 9.754
9,752 i 9,272
8,943 ' 8,563
8,361 I 8,081
3,610
3,880
i
;
!
i
6,526
6,813
7,170
7,685
4,950
5,050
6,640
2,450
!
'
j
;
7,024
7,242
7,090
7,266
2,210
1,430
1,190
610
575 ! 6,848
515 i 6,602
521 6,321
480
380
280
i For lenders other than member banks—i. e , nonmember banks, forSource: Commercial and Financial Chronicle.
Issues publicly offered; annual totals are as finally reported by De- eign banks, corporations, etc.—only security loans to brokers in NewYork
City are included in available reports.
partment of Commerce; monthly figures are as compiled currently and
are1 subject to revision.
Includes issues of Federal land banks and Federal intermediate
credit banks, not shown separately.
• Includes Treasury issues (exclusive of refunding) as follows: March,
$408,925,000; April, $425,404,000; June. $310,826,000; August $80,042,000;
September, $483,872,000; October, $779,000; November, $52,027,000.
1
J
19
FEDERAL RESERVE BULLETIN
JANUARY, 1932
PRODUCTION, EMPLOYMENT, CAR LOADINGS, AND COMMODITY PRICES
[Index numbers; 1923-1925 average -=100. The terms adjusted and unadjusted refer to adjustment for seasonal variation!
Building contracts awarded
(value)**
Industrial production*
Year and
month
1
Total i
Manufactures
Minerals *
To tal
Residential
Factory employment 2
All other
F actor V
pay
rolls 2
Freight-car
loadings *
Unad- Ad- Unad- Ad- Unad- A d - Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Unad- Adjusted justed j u s t e d justed justed justed justed justed justed justed justed justed justed justed justed justed justed
1919
1920
1921
1922
1923 .
1924
1925.
1926
1927
1928-.
1929
1930
83
87
.-
_
85
102
95
104
10S
"0G
111
119
90
I!
!
,-,
84
87
67
86
101
94
105
108
106
112
119
96
44
30
44
68
81
95
124
121
117
126
87
50
C3
63
56
79
84
94
122
129
120
135
117
92
89
70
74
105
90
99
10S
107
ior>
115
09
107
108
82
90
104
96
100
101
99
97
101
88
79
90
65
88
86
94
120
135
139
142
142
125
81
103
96
101
104
102
102
108
87
84
91
79
87
100
97
103
106
103
103
106
99
98
118
Commodity
prices t
139
154
98
197
01
198
104
00
95
98
97
86
1927
August
September
October- -.
November
December..
1928
January—_
February.
March
April
May
June
July
August
September
October.._
November
December.
1929
January.._
February.
March
April
May
June .
Julv
August
September
October-..
November
December.
105
106
105
101
96
106
105
103
100
101
105
111
112
110
110
108
105
110
116
118
115
109
105
108
108
109
109
109
109
111
114
116
116
116
117
121
123
124
126
125
120
122
123
121
108
96
117
118 j
118 '
122 i
124
127
125
123
122
118
108
100
103
109
107
108
105
99
91
90
92
90
85
78
82
87
S9
90
89
83
80
78
77
75
»73
106
105
102
100
100
111
111
112
105
97
106
104
105
101
103
131
133
126
122
111
126
128
128
129
131
108
119
120
120
111
113
118
119
121
125
149
145
131
124
111
136
136
135
130
136
99
101
99
97
95
99
98
98
97
97
102
102
103
98
99
109
116
114
101
88
104
103
101
98
98
95
97
97
97
97
106
109
109
110
110
111
110
112
115
116
116
117
100
99
98
94
104
104
103
111
115
123
117
106
103
103
103
105
105
101
101
105
107
114
113
112
111
121
138
155
159
154
142
137
138
134
122
107
137
138
137
137
1
37
116
128
143
152
149
140
127
116
118
115
112
93
139
142
136
130
130
100
126
119
118
115
114
106
108
115
134
157
168
135
135
137
142
143
144
137
141
147
152
146
145
94
96
97
96
96
96
96
98
100
100
99
98
96
96
96
96
96
101
103
100
101
92
94
97
96
105
101
101
ins
102
102
103
101
103
100
96
96
96
97
99
98
98
199
00
98
97
97
117
122
126
198
128
197
120
122
123
119
107
93
117
118
120
124
126
129
126
124
122
118
108
98
114
116
101
103
116
116
118
121
127
127
114
110
118
120
107
115
1 ifi
112
114
115
118
118
110
116
98
102
121
139
143
144
136
129
112
104
94
84
120
118
121
123
81
84
106
117
113
102
94
84
73
67
66
53
97
94
101
100
139
137
137
142
93
86
73
67
67
61
111
116
133
158
ifiS
1 7ft
170
166
144
135
116
109
104
107
104
106
104
100
94
91
91
87
84
82
103
110
109
110
106
99
89
88
91
88
83
76
103
107
105
107
104
100
94
90
90
85
83
80
108
104
91
93
10°
103
100
101
100
104
95
89
112
109
96
104
103
100
97
96
94
98
92
94
78
89
102
113
125
116
107
85
82
75
03
59
95
104
102
101
105
99
46
44
54
62
56
49
52
CO
fii
54
81
81
78
76
73
48
52
51
46
37
82
86
87
89
89
84
83
79
76
81
88
91
91
90
83
81
85
87
S9
89
84
86
84
82
83
84
85
37
42
50
52
47
41
79
76
71
*>70
82
82
89
82
58
68
77
82
78
74
68
63
59
52
43
71
79
79
77
77
72
*71
90
88
87
92
86
85
84
79
104
106
104
100
I
95
!
|
1
j
106
113
114
113
111
109
105
j 110
116
117
i
115
1 110
1
1
OQ
13°
131
134
136
132
127
1 91
126
124
122
110
107
103
102
155
154
154
150
130
117
QP\
07
07
Qft
109
97
98
98
99
100
103
104
107
104
104
109
119
119
109
94
103
105
106
107
106
100
100
101
109
101
108
111
111
95
99
98
1Q9
108
107
105
149
152
140
139
132
136
97
100
101
102
1 no
102
102
104
105
103
99
95
104
126
141
128
148
144
93
93
93
i r\(\
1 7ft
140
14.Q
no
CO
Q1
49
47
49
52
52
48
43
166
140
89
1
^
1 3^
Rfi
07
115
108
94
80
77
106
105
99
99
98
85
86
84
81
79
75
89
" 98
107
104
101
93
104
100
96
85
84
87
81
71
57
81
80
76
67
Q7
QK
14.1
1 ^9
loft
1 07
1Oft
97
97
98
97
96
96
98
98
98
96
94
94
109
111
1 OQ
1 O1}
110
103
103
102
101
99
97
1Ofi
110
1 1 -I
111
112
111
103
99
115
121
118
102
89
107
106
104
102
102
96
94
93
94
98
98
89
91
90
100
99
96
09
07
QO
90
91
95
93
84
83
82
81
80
82
83
81
75
96
99
97
86
74
89
87
86
84
84
76
77
78
78
77
75
78
78
78
78
78
76
68
73
75
74
72
68
74
82
74
75
77
79
77
80
80
80
79
77
77
76
75
73
71
70
C-A.
7ft
74
75
71
69
74
73
70 1
69
64
62
76
78
78
70
72
69
69
68
69
68
68
107
1930
January..February.
March
April
May. -_
June
July
August
September
October...
November
December.
40
74
93
92
91
91
89
87
84
84
84
83
80
78
1931
January, _.
February.
March
April
May
June
July
August
September
October.._
November
73
P72
or,
77
85
84
Ti1
oc
44
47
47
44
40
37
or
59
59
55
49
32
32
29
26
33
32
30
27
77
73
65
63
QA
59
56
70
t°
12 For oack figures see BULLETIN for September, 1931 (p. 508). For indexes of groups and separate industries see p. 82.
For indexes of groups and separate industries see p. 83.
* Average per working-day.
** 3-month moving average, centered at second month; see BULLETIN for July, 1931, p. 358.
T vV nolesale price index of Bureau of Labor Statistics: 1926=100. Index numbers for groups and subgroups of commodities are given on p. 84.
p Preliminary.
20
FEDERAL RESERVE BULLETIN
JANUARY, 1932
MERCHANDISE EXPORTS AND IMPORTS
[In millions of dollars]
Merchandise exports
1928
Januarv _
February
March
. __
April
May
_
.
.
.
.
June
July.
August
September
October-.November.
._
Year to date _
December
. .
..
1929
411
371
421
364
423
389
379
379
422
550
545
488
442
490
425
385
393
403
381
437
529
442
4,653
476
4,814
427
Merchandise imports
1931
1930
1928
250
224
236
215
204
187
181
165
180
205
*193
411
349
370
332
320
295
267
298
312
327
289
3, 568 p 2,240
275
338
351
380
345
354
317
318
347
320
355
327
1929
!
i
,
•
\
|
311
282
300
308
285
250
221
218
226
247
204
3,752 : 4,090
339 J
310
2,852
209
'
I
1931
1930
369
369
384
411
400
353
353
369
351
391
338
Excess of exports
P
1928
1929
1930
1931
183
175
210
186
180
173
174
167
170
169
M50
73
20
40
19
69
71
61
32
102
195
218
119
72
106
15
*15
40
50
11
86
137
104
100
67
69
24
35
44
46
79
86
80
85
66
49
26
29
24
14
6
*2
10
36
*43
1,937
900
136
725
117
716
67
*>3C2
p Preliminary.
* Excess of imports.
DEPARTMENT STORES—SALES, STOCKS
FREIGHT-CAR LOADINGS, BY CLASSES
U923-1925 average=100. For back figures see BULLETIN for November,
1930, p. 686]
[Index numbers; 1 1923-1925 average=100. Source of basic data: American Railway Association]
1931
Index of stocks (end of
month)
Index of sales l
August Septem- October November
July
Month
April
_. _
Mav
June
Julv
.
August
September.- _
October
November
December
1930
1931
1930
107
108
107
107
105
103
100
102
99
102
98
94
97
98
97
106
97
95
91
88
84
86
83
88
89
93
110
105
98
71
77
103
112
113
165
Year
102
1931
80
92
101
97
90
65
67
87
93
95
1930
1931
1930
99
98
97
97
96
96
94
88
86
84
83
83
82
81
79
81
80
87
88
93
100
101
98
93
87
87
95
101
104
85
o coco
January
February _
March
Without
Adjusted
Adjusted
Without
for seasonal seasonal ad- for seasonal seasonal advariation
justment
variation
justment
92
91
1931
78
81
87
87
85
80
75
76
84
88
98
94
1
Based throughout onfiguresof daily average sales—with allowance
for changes from month to month in number of Saturdays and for six
national holidays: New Year's Day, Memorial Day, Independence Day,
Labor Day, Thanksgiving Day, and Christmas. Adjustment for seasonal variation makes allowance in March and April for the effects
upon sales of changes in the date of Easter.
Adjusted for seasonal variation
Total
Coal
Coke
...
Grain and grain products.- _. ._ _
Livestock
Forest products
Ore
Miscellaneous
Merchandise 2
76
73
46
72
70
42
69
69
42
69
72
44
68
65
44
100
67
38
51
79
88
78
72
36
52
73
86
68
64
35
49
68
85
74
64
33
36
69
83
76
69
33
23
72
83
•
Total
Coal
Coke
.
Grain and grain products
Livestock
Forest products
Ore
Miscellaneous
Merchandise 2
Without seasonal iid Justinent
78
64
41
76
68
38
78
74
42
78
83
45
70
72
46
120
56
38
92
83
87
95
64
38
89
81
86
83
76
37
79
81
88
' 82
86
33
50
81
87
80
80
31
16
70
85
1
Based throughout on daily average loadings.
2 In less-than-carload lots.
21
FEDEKAL RESERVE BULLETIN
JANUARY, 1932
FOREIGN BANKING AND BUSINESS CONDITIONS
REPORT OF THE SPECIAL ADVISORY COMMITTEE APPOINTED BY THE BANK
FOR INTERNATIONAL SETTLEMENTS
PREAMBLE
The German Government having, in accordance with article 119 of the Young plan, applied
in a letter annexed to this report to the Bank
for International Settlements on November 19,
1931, for the convocation of the Special Advisory Committee, and having declared that
"they had come to the conclusion in good faith
that Germany's exchange and economic life
might be seriously endangered by the transfer
in part or in 7full of the postponable proportion
of annuities/ the board of the bank convened
the committee in accordance with article 45 of
its statutes.
The seven ordinary members of the committee were nominated under article 127 of the
Young plan, as follows:
Prof. Alberto Beneduce, by the governor of
the Banca d'ltalia.
Monsieur Emile Francqui, by the governor
of the Banque Nationale de Belgique.
Sir Walter T. Layton, C. EL, C. B. E., by the
governor of the Bank of England.
Dr. Carl Melchior, by the president of the
Reichsbank.
Mr. Daisuke Nohara, by the governor of the
Bank of Japan.
Prof. Charles Rist, by the governor of the
Banque de France.
Dr. Walter W. Stewart, by the governor of
the Federal Reserve Bank of New York.
The ordinary members held a meeting on
December 7, at the Bank for International
Settlements, at which Signor Beneduce was
unanimously chosen as chairman. The members availed themselves, under article 129 of
the Young plan, of the privilege of coopting the
following four additional members:
Dr. R. G. Bindschedler.
Doctor H. Colijn.
Doctor Diouritch.
Mr. Oscar Rydbeck.
The full committee met for the first time at
the Bank for International Settlements on
December 8, and held plenary sessions from
December 9 to December 23; and various subcommittees were set up, and their reports will
be found as annexes to this report.
The committee has been supplied with an
extensive documentation from official German
sources, copies of which it is forwarding to the
governments concerned and to the Bank for
International Settlements for their information.
The committee desires to express its gratitude
for the very full information thus afforded, and
its appreciation of the manner in which the
material was compiled and presented. The
committee has utilized this material, much of
which is similar in content to the statistics
available for other countries, as part of the
basis for its work, although its conclusions have
naturally been arrived at by reference to
broader considerations.
The committee also wishes to express its
thanks to the Bank for International Settlements for placing at its disposal the secretariat,
and its high appreciation of the admirable
manner in which the latter has executed difficult
and exacting tasks which it has been called
upon to perform.
CHAPTER I
1. Present situation.—The circumstances in
which we have been called together are so w^ell
known that no lengthy recapitulation of events
is necessary. The world depression, which
started over two years ago, gradually gathered
force until it broke in the credit crisis of the
summer.
Every country has been shaken by that crisis,
but its effects in Germany as well as in some other
countries of central and eastern Europe were
devastating. Sweeping withdrawals of foreign
credits led to the crippling of the German banking system, strained the reserve and credit
position of the Reichsbank to the uttermost, so
that, in order to protect the currency, it was
necessary to impose stringent measures of exchange control, which accentuated the already
serious restrictions in the volume of economics
activity. The pressure upon the whole structure of Germany culminated in the emergency
decree of December 8, 1931, which includes
measures without parallel in modern legislation.
The following paragraphs sketch in brief outline the situation which these developments
have created in Germany to-day.
2. Foreign debt.—Germany was peculiarly
susceptible to the credit crisis by reason of the
22
FEDERAL RESERVE BULLETIN
arge amount of her short-term foreign liabilities. In the first seven months of 1931, 2,900,000,000 reichsmarks ($690,780,000) of shortterm credits were withdrawn, principally in
June and July. A census taken by the German
Government of the amount of foreign capital
in Germany as on July 28 shows that the total
commercial debt, and in particular the amount
lent on short term, was even larger than was
indicated in the available figures which were
submitted to the bankers' committee early in
August last. This census indicates that the
total of advances repayable by Germany at
short term outstanding at the end of July
amounted to nearly 12,000,000,000 reichsmarks
($2,858,400,000). But this figure of 12,000,000,000'reichsmarks includes nearly 4,000,000,000 reichsmarks ($952,800,000) of nonbanking
credits, which in all probability are not so likely
to be withdrawn to the same extent as banking
advances, and to a considerable extent are set
off by direct counterassets. The Standstill
Agreement, under which the banking creditors
of Germany undertook not to call in their
credits for six months as from September 1,
1931, applies to rather more than half of the
12,000,000,000 reichsmarks.
The Standstill Agreement, however, permitted the repayment of certain credits, and
under these provisions sums estimated at
1,200,000,000 reichsmarks ($285,840,000) have
been withdrawn during the period ending
November 30, 1931.
3. Trade balance.—Some set-off for the recent
withdrawals has been found in the fact that
they have coincided with a growing export
surplus which began at the end of 1929. The
figures are as follows:
JANVARY, 1932
doubtful if economic conditions will permit it
to continue at the same high level. Exports
have been maintained partly because the need
for cash has put pressure on manufacturers to
sell off stocks, in many cases at a loss, while
some exceptional sales have been made to
Great Britain in anticipation of tariffs. Imports have been reduced because unemployment, lower wages, and high taxation have
reduced the consuming power of the country,
and therefore the demand for imports of consumable commodities. The general reduction
of industrial activity has curtailed the demand
for imports of raw and semifinished material,
and in any case the sharp reversal in the flow of
foreign credit handicaps purchases abroad. The
surplus has, moreover, been increased by the
fact that up to now the world price level of the
type of goods imported into Germany, viz, raw
materials, foodstuffs, etc., has fallen much
more than that of the type of goods exported
by Germany, viz, finished products.
But it is impossible to disregard the existence
of powerful general factors adverse to the
continuance of this favorable development.
Tariffs, exchange control measures in other
countries, import restrictions and contingents,
together with the enhanced competition Germany is likely to meet through the depreciation of sterling and other currencies, all tend to
hamper German exports; on the import side
it will be necessary for Germany to replenish
her stocks of raw materials and to purchase
food from abroad.
In any case, the surplus represented by the
above figures has not become immediately
available to Germany in the form of foreign
exchange which can be utilized to repay debts.
In view of the prevailing lack of confidence,
[In millions]
there has been an increasing tendency to call
upon
Germany to pay cash for her imports,
Surplus of imImports
Exports
ports (—) or
while
she
has had to give extended credits for
exports (+)
her exports. In particular, German exports to
Russia, which are running at about 80,000,000
| ReichsReichs- DUo Ol ll jaarrsb Reichs, marks Dollars reichsmarks ($19,056,000) a month, on the
marks Dollars marks ,average of the last four months, have been
Monthly average: !
made on very long credit terms. On the other
250
959
228
-92
-22
1925-1929
I 1,051
1930.
866
+33 hand, even exporters have been able, in spite of
206 1, 003
239 +137
1931, January to
the legal restrictions, to keep abroad part of
June
1..
634
794
151
189 +160
+38
July, 1931
562
134
827
197 +265
+63 the foreign exchange resulting from exports.
August, 1931
454
+83
108
803
191 +349
4. Balance of payments.—Taking the year
September, 1931
448
+92
107
835
199 +387
October, 1931
483
+94 as a whole, the extent of the exodus of capital
115
879
209 +396
November, 1931
482
+64
115
749
178 +267
which Germany has to meet by means of her
export surplus (disregarding the qualification
The recent heav}r export surplus is in part the explained in the preceding paragraph), together
result of certain abnormal factors, and it is with such other resources as have been avail-
JANUARY, 1932
FEDERAL RESERVE BULLETIN
23
able to her, is indicated by the following rough ments, and for the imports necessary to Germany, the Reichsbank has been forced to take
balance sheet for the year 1931:
or recommend a series of measures of increasing
[Tn millions]
stringency, in order to limit to the greatest
possible extent the other calls for foreign
Reichs- Dollars
marks
exchange which might be made upon it.
Nevertheless, the reserve has fallen still furExport surplus for year (estimated), including :
services and deliveries in kind
3,000 '
715 ther, until on December 15, 1931, it was no
Utilization of foreign assets of German banks
1, 300 |
310 more than 1,161,000,000 reichsmarks ($276,Rediscount and other credits, including that from
|
550,200), of which 630,000,000 reichsmarks
central banks and the Bank for International
Settlements
'
1, 200 !
28fi ($150,066,000) represent
the amounts due
Drawn from gold, etc., reserve of Reichsbank
1, 700 j
405
under
the
rediscount
credits
referred to above.
7,200 !
Total _
1, 715
The percentage cover for the note issue has
Reparation payments up to June 30, 1931
:
800 I
191 thus fallen to 25.6 per cent, or if the 630,000,000
Interest and normal amortization on Germany's i
;
foreign liabilities (estimated)
j
1,500 !
357 reichsmarks be excluded, to 11.7 per cent.
Balance representing capital withdrawn
|
4,900 I
1,107
The note circulation itself amounts to approxi7, 200
1,715
Total _
mately 4,600,000,000 reichsmarks ($1,095,720,000), which compares with a figure of 4,300,An examination of the above table, which 000,000 reichsmarks ($1,024,260,000) a year
can obviously be only an estimate, as will be ago. In view of the reduction of business
seen from the report of the subcommittee, activity in the last year, as well as of certain
shows how great a part of Germany's income measures taken to economize the use of curfrom the surplus of exports has been absorbed rency, the present note circulation is high;
by the amounts required for the interest and this may be attributed to a decrease in the
normal amortization of her foreign liabilities, velocity of circulation and to a certain tendand for reparation payments before the Hoover ency on the part of the public to hoard notes.
plan. The withdrawal of capital, besides exerAn important change in the situation is
cising considerable pressure on the balance of revealed by an examination of the volume of
trade, as already described, forced Germany to bills now held by the Reichsbank and the private
have recourse not only to the reserves held banks, respectively. Before the crisis the
against their foreign liabilities by the German proportion of gold and foreign exchange to the
private banks but also to increase such credits total note issue fluctuated around 60 per cent;
as were commercially available by the redis- for example, on April 30, 1931, the Reichsbank
count credits granted to the Reichsbank and the held gold and exchange reserves of 2,526,000,000
Golddiskontbank. This did not obviate heavy reichsmarks ($601,693,200), and domestic bills
sales of gold, and the striking feature of this of 1,520,000,000 reichsmarks ($362,064,000),
balance sheet is the drain which the withdrawal against a total note issue of 4,340,000,000
of capital has placed upon the reserve of the reichsmarks ($1,033,788,000), that is, 58 per
Reichsbank, which has profoundly influenced cent of the note issue was covered by gold and
the policy of the latter.
foreign exchange. At the same date the credit
5. The Keichsbank.—The Reichsbank re- banks held nearly 2,900,000,000 reichsmarks
serve, which stood at 2,685,000,000 reichsmarks ($690,780,000) of domestic bills, representing
($639,567,000) at the end of 1930, and even at an immediately liquid asset which the credit
2,576,000,000 reichsmarks ($613,603,200) at banks held as a reserve against their despoit
the beginning of June, 1931, had fallen to liabilities.
1,610,000,000 reichsmarks ($383,502,000) on
The heavy withdrawal of deposits from the
July 31, 1931. Of this last amount, however, it credit banks during the crisis, whether by
owed at short-term 630,000,000 reichsmarks external or internal creditors, induced the banks
($150,066,000) in respect of the rediscount to seek assistance from the Reichsbank by
credits granted to it by the Bank for Inter- discounting such material as they had availnational Settlements and the central banks, able, and in addition creating (to some extent,
and to the Golddiskontbank by an American with the assistance of the Acceptance and
banking consortium. In order to insure that Guarantee Bank) further material for discountthe necessary foreign exchange should be avail- ing with the Reichsbank. The latter has thus
able to meet the service of Germany's long-term to a considerable degree extended its own
debt, for such repayment of short-term credits credit in substitution for the deposits and other
as is permissible under the standstill arrange- credits which have been withdrawn from the
24
FEDERAL RESERVE BULLETIN
credit banks, as well as from the savings banks.
As a result, the domestic bill holding of the
Reichsbank on December 15,1931, amounted to
4,213,000,000 reichsmarks ($1,003,536,000) (including 542,000,000 reichsmarks ($129,104,400)
of bills set aside against credits granted to the
Reichsbank as referred to above), while that of
the credit banks on October 31, 1931 (the last
available date), has fallen to 1,792,000,000
reichsmarks ($426,854,400). In these circumstances we hesitate to express an opinion on
the advisability of the recent reduction in the
Reichsbank rate.
6. Production and employment.—In order as
far as possible to protect the external position—
the reichsmark exchange and the export market—Germany has pursued a deliberate policy
of stringent and sharp reduction of the level of
wages and prices. The index figure of wholesale prices fell from 140 in November, 1928, to
106 in November, 1931, and prices are further
to be reduced under the emergency decree of
December 8, 1931, while wages are reduced
under that decree to approximately the level
prevailing at the beginning of 1927.
Taking 1928 as 100, the index of industrial
production rose to 101 in 1929, fell to 86 in
1930, and. for September, 1931 (the latest
figure available), it had fallen to 66—in other
words, one-third of the industrial life of
Germany has stopped.
This gradual atrophy of industrial and commercial activity has further increased unemployment, which was already high before the
crisis. The figure of unemployed (excluding
part-time workers) on December 1, 1931, had
reached a level of 5,000,000 out of approximately 21,000,000 employed persons.
The crisis has also seriously affected German
agriculture, which in 1925 employed about 30
per cent of the working population of Germany.
Having contracted debts at high rates of interest
when prices were high, it now finds it difficult,
if not impossible, to earn sufficient to meet the
interest on these debts, and measures of protection and financial relief, amounting almost
to a moratorium, have been taken in order to
prevent a general collapse.
Ever since the inflation period the demand
for capital in Germany, in relation to the supply
from domestic sources, has kept interest rates
above those prevailing in other countries.
During 1930, advances to manufacturers of
first-class standing seldom cost less than 8 per
cent; in recent months the cost has been about
50 per cent higher—that is, rates have risen to
about 12 per cent. This burden naturally imposes a heavy strain on German industry, and
JANUARY, 1932
is one of the causes of the present decline in
industrial activity.
7. The budget.—The decline of economic
activity, the fall of profits resulting from the fall
in prices, and the lower yield of the taxes on
wages due to increased unemployment and
lower wage rates, have seriously reduced the
yield of taxation. This fall (taken in conjunction with the cost of maintaining the growing
army of the unemployed) has produced a critical
situation in the public finances of Germany.
In the five years preceding the depression the
revenue and expenditure of the Reich, the Federal States and the communes showed a rapid
increase. Owing to the system of taxation under
which the latter received a proportion of the
taxation collected by the Reich, the situation
can best be shown by combining the budgets of
all the authorities concerned. The figures are
shown in the following table, which also gives
the total gross expenditure of all these authorincluding expenditure covered by receipts
from State property—from loans and from other
sources:
[In millions]
Reichsmarks
Taxes * raised and retained by the Reich (i. e.,
excluding the tax transfers to the States):
1926-27
5,312
6,357
6,568
6,686
6,634
1.265
1 514
1. 564
1.593
1.580
6, 363
7,189
7,730
7,593
7,482
1.510
1.712
1. 841
1.809
1.782
1927-28
1928-29
1929-30
1930-31
6,561
7,154
8,375
7,987
8 193
1.563
1.704
1.995
1.903
1 952
1927-28
1928-29
1929-30
1930-31
10, 639
11,647
12,426
12, 836
12, 770
2.534
2.774
2.960
3.058
3.042
1927-28
1928-29
1929-30
1930-31
-
Taxes raised by States and Communes, including
the tax transfers from the Reich:
1926-27
1927-28
1928-29
1929-30
1930-31
.._
_
Expenditure of Eeich:
1926-27
.
Expenditure of other authorities:
1926-27
1
Dollars
.
-
Including the contribution of the railway company.
The expenditure of the Reich includes an
item for reparations which rose from 1,300,000,000 reichsmarks ($309,660,000) in the year
1926-27 to 1,800,000,000 reichsmarks ($428,760,000) in the year 1930-31, that is, about \2){
per cent of the total tax revenue of the Reich,
the States and the communes.
The revenue receipts for 1930-31 fell considerably short of the original estimates. The
position in 1931-32, in which the revenue was
expected to equal that actually received in the
JANUARY, 1932
FEDERAL RESERVE BULLETIN
preceding year, has rapidly deteriorated. Fresh
estimates made in September, 1931, showed an
estimated fall in the total receipts from taxes
collected by the Reich (including amounts subsequently transferred) of not less than 1,000,000,000 reichsmarks ($238,200,000). It is further estimated that the yield of taxes collected
by the Reich at the rates in force prior to the
recent decree will show a further fall next year
of 1,000,000,000 reichsmarks ($238,200,000) and
amount to not more than 7,250,000,000 reichsmarks ($1,726,950,000), as compared with receipts of 9,250,000,000 reichsmarks ($2,203,350,000) in 1929-30. This fall of 2,000,000,000
reichsmarks ($476,400,000) is after taking
credit for a series of measures imposing taxation during the preceding two years, amounting
to 1,500,000,000 reichsmarks ($357,300,000).
Had the rates of taxation not been increased,
therefore, the revenue would have fallen off in
the last two years by some 3,500,000,000 reichsmarks ($833,700,000), or about 40 per cent. It
is estimated that the present decree will raise
the revenue to approximately the same level as
in the present year, that is, about 8,000,000,000
reichsmarks ($1,905,600,000).
Apart from the increase in taxation referred to
above, attempts are being made to meet the
falling off in revenue by sweeping reductions in
expenditure. So far as the Reich is concerned,
expenditure on all objects other than service
of the debt, transfers to the Federal States,
external war burdens and emergency unemployment relief, has been reduced from 1929 to
1932 from 4,780,000,000 reichsmarks ($1,138,596,000) to 3,720,000,000 reichsmarks ($886r
104,000), that is, a reduction of 1,060,000,000
reichsmarks ($252,492,000), or 22 per cent.
Measures similar in character have been
taken by the Federal States and by the communes. The latter were empowered about a
year ago to increase taxation and they were
asked to reduce expenditure, and in any cases
where these powers have not been exercised
the competent higher authority may step in
to see that the necessary measures are taken.
Part of the economies effected have, however,
been offset by the increased cost of unemployment relief, due to the growth of unemployment in the last two years. It has been possible to effect considerable economies in this
sphere by reducing the average monthly benefit
paid to the unemployed, which from a former
average of 80.93 reichsmarks ($19.28) has fallen
to 63.86 reichsmarks ($15.21) in 1931. Expenditure under the emergency relief system,
which averaged 71 reichsmarks ($16.91) a
month, has dropped to 60.75 reichsmarks
25
($14.47), while welfare relief payable by the
communes—varying according to the locality—
may be estimated probably in the neighborhood of 50 reichsmarks ($11.90) monthly.
It is, however, an advantage from the purely
budgetary point of view that the internal
debt and the annual charge which it involves
is comparatively very low as a result of the
inflation prior to 1924, which wiped out the
greater part of the previously existing debt.
On the other hand, the German Government in
the sketch estimate for 1932 has included a
considerable sum for the amortization of its
short-term debt incurred to meet the deficit of
previous years. This provision has been made
by Germany in view of the fact that the shortage of credit is such that the Government is
practically unable at present to rely on borrowing in the money market in order to meet
its maturing short-term obligations.
In view of the measures taken in the four
decrees relating to taxation and expenditure
issued in the last two years, and in particular
in that of December 8, 1931, the committee
is of opinion that the burden of taxation has
become so high that there is no margin for a
further increase.
8. German railway.—The growing stagnation
in German business activity has naturally been
reflected in the gross receipts of the German
Railway Company, which fell in 1930 by 14.6
per cent compared with 1929. Although energetic measures of economy were taken to meet
this loss of income, the surplus of receipts over
operating expenses fell from 860,000,000 reichsmarks ($204,852,000) to 480,000,000 reichsmarks ($114,336,000), that is, 180,000,000
reichsmarks ($42,876,000) short of the amount
necessary to cover the reparation liability. A
further fall has taken place in 1931, the receipts
of which are 28 per cent below those of 1929,
and it is estimated that the surplus of receipts
over operating expenses will amount to only
178,000,000 reichsmarks ($42,399,600). In
these circumstances the railway in 1931 will
not be able, even after drawing upon its
reserves, to cover out of earnings the liabilities
incumbent upon it in respect of reparation and
debt charges, though the cash position is met
by the financial arrangements made between
the German Government, the railway, and the
Bank for International Settlements in connection with the Hoover plan. It is impossible
to estimate what will be the operating results
of the year 1932. Nevertheless, the subcommittee who were asked to report upon the
position of the German Railway Company
26
FEDERAL RESERVE BULLETIN
came to the conclusion that once Germany
and the world at large had recovered their
balance and returned to something like the
economic conditions which we are accustomed
to regard as normal, the railway company
(fundamentally a sound undertaking) will be
able in future years, if managed on a commercial basis, to yield a net operating surplus
comparable with that earned by other big
foreign railway systems.
CHAPTER II
CIRCUMSTANCES AND CONDITIONS WHICH HAVE
LED TO THE PRESENT SITUATION
The circumstances and conditions which have
led to the situation we have been describing are
partly international and partly peculiar to
Germany.
fc 1. Course of the crisis.—Like all other countries, Germany has suffered from the consequences of the extreme fall of prices, which is
the characteristic trait of international economic life since the end of 1929. The fall of
about 30 per cent of wholesale prices in the
world as a whole far exceeds in magnitude the
fall in prices that has taken place in any period
of depression in the last 100 years. It is impossible to say if this fall is permanent or if it will
be followed, after the acute depression has
passed away, by a substantial rise. What is
certain is that it has deeply affected all economic activity, and that no effort to maintain
prices—iby whatever means it may have been
attempted—has hitherto attained any success.
The sharp reduction of purchasing power
of large masses of consumers has involved
in the last two years the reduction or complete disappearance of industrial profits, serious unemployment, and an uninterrupted
slump in stock exchange securities. It has
threatened in consequence the status of a large
number of banks; this banking crisis in its
turn has provoked a general lack of confidence
and involved a withdrawal of foreign capital
from countries w^hich hitherto have had the use
of it, and in particular from central Europe.
It has only been possible to maintain the exchange value of the currencies of some of these
countries on a nominal basis by a system of
decrees regulating the exchange market and
by the suspension of a part of their foreign
payments.
This situation has naturally aggravated the
"crise de confiance" in the lending countries
themselves. The abandonment of the gold
standard by certain of them has created a fresh
JANUARY, 1932
source of disturbance in international trading
relations and given rise to the universal tendency
to hoard, which, if it were to continue, would
bring to a standstill the whole system of credit.
Finally, to this monetary crisis is now being
added a tariff crisis, each county seeking to
defend its diminished production against foreign imports by a fresh increase in import
duties and other forms of trade restrictions,
which in turn result in the still further shrinkage
of international trade.
We can not here attempt to examine all the
underrying causes of this profound disturbance
to the economic life of the world, but certain of
its aspects are intimately linked with the
problem with which we are directly concerned.
Among these factors, the banking committee
which met in Basel in August called attention to the fact that "in recent years the world
has been endeavoring to pursue two contradictory policies, in permitting the development of
an international financial system which involves
the annual payment of large sums by debtor
to creditor countries, while at the same time
putting obstacles in the way of the free movement of goods/7 and that the case of Germany
provides a most forcible illustration of this
dilemma. So long as the payments to be
made were offset by loans to the debtor country
this dilemma did not arise, but as soon as such
capital movements ceased, as happened in the
autumn of 1929, it becomes evident that in the
long run, as the Dawes committee clearly
pointed out, these payments can only be made
in the form of goods. The change from a
period of excessive expansion of foreign lending by certain creditor countries, followed by
an abrupt cessation of such lending, constitutes one of the chief points of contrast between the period 1924-1929 and 1930-31,
and has been one of the principal features in
the credit situation of recent times. If barriers are imposed to the free movements
of goods, the world can not readily adapt
itself quickly to important changes in the
course of credit and trade. Attempts to
maintain the international balance of payments
by means of larger and abnormal movements
of gold have weakened the monetary foundations of many countries. In fact, when the
withdrawal of large sums of capital took place,
the gold reserves of the countries concerned
proved quite inadequate to stand the strain.
This led in some countries to the strict control
of foreign payments and in others to the suspension of the gold standard.
JANUARY, 1932
FEDERAL RESERVE BULLETIN
2. Capital and commercial debt of Germany.—
Germany's demand for capital to fill the gap
left by the war, the aftermath and the inflation,
was very great. As a matter of fact, the influx
of foreign capital which began as soon as the
mark was stabilized and which was estimated
by the bankers' committee to be about 18,000,000,000 reichsmarks ($4,287,600,000), has been
partly offset by the 10,300,000,000 reichsmarks ($2,453,460,000) of reparation payments.
But in any case, between 1925 and 1930
Germany has invested a very large amount of
capital in both private and public enterprises.
She has, for example, reconstructed her merchant fleet, she has modernized and rationalized
many of her industries, and her towns have
carried through large programs for public purposes. The figures furnished to us by the
German delegation show for the period 19241929 the investment of a sum amounting to
32,845,000,000 reichsmarks ($7,824,000,000), of
which 22,428,000,000 reichsmarks ($5,342,000,000) represent investments by public authorities, for public utilities, housing (other than
houses financed purely by private means),
roads, canals, etc.
These sums have, of course, been forthcoming partly from Germany's own savings, which
reached very high figures in the course of
recent years. But the foreign holding of so
large a proportion of her capital wealth makes
her peculiarly vulnerable to financial disturbance, particularly to the extent that this capital
is withdrawable at short notice. Moreover, a
substantial part of these short-term credits
has proved to be immobilized in long-term
investments. The withdrawal of these credits
must therefore threaten not only the exchange
but also the liquidity of the banks themselves.
3. Growth of the German budget.—Turning
to Germany's budgetary situation, the rapid
development of Germany's economic activity
in recent years has been paralleled by an
increase of government expenditure. The continued increase of expenditure from 1925 to
1930 has absorbed as fast as it came into being
the growing taxable capacity of Germany. In
spite of a rapid increase in normal receipts,
which increased between 1926-27 and 1929-30
from 14,719,000,000 reichsmarks ($3,506,100,000) to 18,054,000,000 reichsmarks ($4,300,500,000), the increase of expenses has been
equally rapid. Indeed, they have risen from
17,200,000,000 reichsmarks ($4,097,000,000) to
20,823,000,000 reichsmarks # ($4,960,000,000),
and have resulted in an increase of debt.
Among the expenditure items, outgoings for
buildings, education and social charges (chiefly
27
due to increasing unemployment) have continuously increased and now represent 43 per
cent of the total expenditure, and amount in
1929-30 to 8,897,000,000 reichsmarks ($2,119,300,000).
While expenditure thus increased the debt
grew in a disquieting fashion. When stabilizing took place, inflation had reduced the public
debt to very small amount. On the other
hand, by 1931 this debt reached more than
24,000,000,000 reichsmarks ($5,716,800,000),
of which 8,400,000,000 reichsmarks ($2,000,880,000 were for public undertakings (water, gas,
electricity, transport, and roads), for the building of houses and for various public works
(hospitals, sanatoria, etc.). In particular from
1928 to 1931—in three years—the debts of the
States and communes increased from 7,500,000,000 reichsmarks ($1,786,500,000) to 12,700,000,000 reichsmarks ($3,025,140,000).
When the crisis came, with the inevitable
reduction of private incomes and budgetary
receipts which it naturally involved, the fact
that expenditure had been so high meant that
the deficit was correspondingly large.
This policy of growing expenditure, as also
the system of financial relations which exists
between the Reich, the States and the communes, have often been the subject of criticism. The Reich levies taxation of which it
retains part only, and of which a proportion
fixed by law is automatically handed over to
the States and communes, which only cover
their expenditure from their own resources to
the extent of 75 per cent. Such a system means
that the control of expenditure is divorced from
the responsibility of raising the revenue to meet
it, and although the system may have been
moderated by recent ordinances of the Reich,
we think that reform in this matter would have
beneficial results.
In concluding this analysis of the circumstances and conditions which have given rise
to the present budgetary position of Germany,
the following observation should be made:
Notwithstanding the exceptional character
of the present crisis, there is no instance in
economic history of a crisis, no matter how
great, which was not followed by periods of
stability or prosperity. Just as it would be
wrong to forecast a country's economic future
on the basis of a period of prosperity, so it
would be unjustifiable to judge its chances for
the future on the basis of a period of depression.
At the present time the budgets of all countries and of almost all privately or publicly
owned railways show a deficit. In every country efforts are being made to restore the equi-
28
FEDERAL RESERVE BULLETIN
librium of these budgets by cutting down expenditure and by adjusting receipts to changed
conditions. To assume that in the present case
equilibrium will not be regained would be a
counsel of despair.
What is true of the budgets and railways of
other countries is obviously equally true of
Germany. In past years Germany has built
up an immense and powerful economic equipment, capable of yielding a great return. The
restriction of markets and the fall of prices have
prevented her from utilizing this equipment to
the full. The activity of her factories is now
necessarily reduced, but although it is impossible to fix a date for the recovery of stability,
which is still threatened to-day, it is none the
less certain that this stability will ultimately be
restored with the help of the measures suggested
in chapter 4.
In the course of our investigations we were
able to ascertain from the figures submitted to
us that, as regards both the railways and the
budget, receipts are no less elastic in the case
of Germany than elsewhere.
On the other hand, it would be rash, both in
the case of Germany and in the case of other
countries, to presume to indicate the precise
moment at which this exceptional and unfortunate period through which we are now passing
will come to an end.
CHAPTER
III
SPECIAL MEASURES TAKEN BY GERMANY TO
MEET THE CRISIS
In the course of its deliberations the committee had the opportunity of receiving a
synopsis of the special measures taken by the
German Government by form of emergency
decrees, as from July, 1930, in order to meet the
increasing difficulties of the situation.
The primary object of the German Government was to secure the stability of the currency
and in general the functioning of the German
economy within the frame of the world economy. To this end they devoted all their
efforts in securing the balance of the budget,
not only in the Reich but also in the States
and communes. Direct taxation was augmented by two increases in the income tax;
indirect, by the imposition of further heavy
duties on beer and tobacco, while finally the
turnover tax has lately been increased from
0.85 to 2 per cent. Sweeping economies have
been effected in the expenditure of the Reich; a
series of cuts in the salaries of all public serv-
JANUARY, 1932
ants, reducing them by over 20 per cent, has
been made in the last 18 months, so that salaries
will be now on a lower level than at the beginning of 1927.
Similar measures have been taken with regard
to the budgets of the Federal States and the
communes. The latter have been authorized,
and in certain cases compelled, to levy new and
additional taxation in the form of a poll tax,
a local beer duty, and a tax on beverages. The
reductions in salaries apply also to officials
employed by these bodies.
Contributions under the unemployment insurance scheme have been raised to 6.5 per
cent of wages, while considerable reductions
in the scope and scale of the benefits paid by
the Insurance Institute have been made.
A further main point in the program of the
Government was the reduction of prices and
wages. Prices were generally reduced by 10
per cent. Rents are being reduced by a similar
percentage. Even the rates of interest on
long-term obligations must be reduced by about
25 per cent. In the sphere of wages, a general
reduction to approximately the level prevailing
at the beginning of 1927 has to take place.
The magnitude of the crisis forced the Government to emergency measures in the field of
credit policy. Such measures have been taken
for supporting a series of banking institutions
and for strengthening the position of the money
market. A system of general control of the
banks has been set up, with a commissioner responsible to a board including representatives
of the Reichsbank and of the competent Government authorities. New regulations have
been made for the carrying on of the business of
the savings banks and allied institutions, in
particular limiting the extent to which they
may finance the municipalities in future. For
the time being they are not allowed to grant
them new credits. The law governing public
companies has been revised and the provisions
regarding the responsibility of directors sharpened, while new regulations are made regarding
the auditing of accounts.
Transactions in foreign exchange have been
centralized in the Reichsbank with a view to
limiting the purposes for which foreign exchange
may be acquired, and all purchases of foreign
exchange require prior authorization. All persons becoming possessed of foreign exchange,
whether by exports or otherwise, are compelled
to offer their holdings to the Reichsbank. It is
no longer possible to remit abroad the proceeds
of sales of securities on behalf of foreigners.
FEDEKAL EESEEVE BULLETIN
JANUARY, 1932
Stringent provisions seek to limit the flight of
capital. All the above-mentioned prescriptions are secured by heavy penalties (fines and
prison). Repayment of foreign credits is regulated by the Standstill Agreement, or, if not
covered by this agreement, under decree.
Finally, in order to prevent widespread collapse of agricultural credit, measures amounting practically to a moratorium for agricultural debts have been taken, chiefly for the
eastern parts of Germany. Farmers suffering
from special difficulties are allowed to appeal
for protection against foreclosure or distraint
on condition that they carry on their business
under the supervision of trustees, pending
approval of a scheme for relieving them of
the immediate burden of their debts. Such
schemes may provide for reduction of interest
rates and the diminution of the capital debt,
in certain cases even without the consent of
the creditors.
The question how far the measures described above will be successful can not be
answered at the present moment. But the
committee considers that the steps taken to
defend and to maintain the stability of the
currency and the budget show, in their opinion,
a resolute desire on the part of the German
Government to meet the situation.
CHAPTER IV.
CONCLUSIONS
It is evident from the facts outlined in the
preceding chapters that Germany would be
justified in declaring—in accordance with her
rights under the Young plan—that in spite of
the steps she has taken to maintain the stability of her currency, she will not be able in
the year beginning in July next to transfer the
conditional part of the annuity.
The committee, however, would not feel that
it had fully accomplished its task and justified
the confidence placed in it if it did not draw
the attention of the governments to the unprecedented gravity of the crisis, the magnitude of
which undoubtedly exceeds the " relatively short
depression" envisaged in the Young plan—to
meet which the "measures of safeguard" contained therein were designed.
The Young plan, with its rising series of
annuities, contemplated a steady expansion in
world trade, not merely in volume but in value,
in which the annuities payable by Germany
would become a factor of diminishing importance. In fact, the opposite has been the case.
Since the Young plan came into effect, not
29
only has the trade of the world shrunk in
volume, but the very exceptional fall in gold
prices that has occurred in the last two years
has itself added greatly to the real burden, not
only of German annuities, but of all payments
fixed in gold.
In the circumstances the German problem—
which is largely responsible for the growing
financial paralysis of the world—calls for concerted action which the governments alone can
take.
But the problem has assumed a worldwide range. We can recall no previous parallel
in time of peace to the dislocation that is taking
place and may well involve a profound change
in the economic relations of nations to one
another. Action is most urgently needed in
a much wdder field than that of Germany alone.
The economic interdependence of the various
countries of the world to-day needs no further
proof; recent years have most strikingly illustrated it.
Since July last, for example, it has been evident that if the crisis by which Germany has
been overwhelmed were not remedied, it would
spread to the rest of Europe, destroy the credit
system so painstakingly built up, and create
profound repercussions in other parts of the
world.
The committee appointed by the Bank for
International Settlements, on the invitation of
the London Conference, after describing this
situation in its report of August 18, 1931,
sounded a most emphatic note of warning,
urging that if disasters were to be avoided
before the period of postponement of credits
recommended by that conference expires on
February, 29, 1932, immediate steps must be
taken by the Governments.
But events did not wait. The year 1931 has
not yet ended, and already the crisis has taken
formidable dimensions, shattering the exchanges of many countries one after the other
and accumulating difficulties which, if not
dealt with, will only prove forerunners of
further catastrophies. Unemployment has increased; stock exchanges remain closed; economic activity continues with difficulty at a very
low ebb in the face of restricted credit, rigid
control of the exchanges, and paralyzing restrictions on international trade. Slowly the
effects of shrinking economic activity are making themselves felt in one country after another.
^fhis state of things is complicated by the
repercussion of economic affairs on the political
situation and vice versa. The economic decline
which has taken place in the last two years, the
30
FEDERAL RESERVE BULLETIN
increasing distress which it has brought in its
train, have produced a general political instability from which an anxious world is suffering
more and more. Similarly, political considerations have often been allowed to influence the
treatment of economic problems by the governments, thus preventing the latter from viewing
these problems in their true light and from
dealing with them on their merits.
When governments come to examine the
whole group of questions allied to the subject
of the present report, they will have to take
account of many matters relevant to these
complex problems—which can only be solved
in conformity with economic realities.
In this connection certain considerations seem
to us of great importance.
The first is that transfers from one country
to another on a scale so large as to upset the
balance of payments can only accentuate the
present chaos.
It should also be borne in mind that the
release of a debtor country from a burden of
payments which it is unable to bear may
merely have the effect of transferring that
burden to a creditor country which, in its
character as a debtor, it, in its turn, may be
unable to bear.
Again, the adjustment of all intergovernmental debts (reparations and other war debts)
to the existing troubled situation of the world
—and this adjustment should take place without delay if new disasters are to be avoided—
is the only lasting step capable of reestablishing confidence, which is the very condition of
economic stability and real peace.
JANUARY, 1932
Finally, although the German Government
is energetically defending the stability of its
currency, steps are necessary to secure that
these measures shall have a permanent effect.
The European governments during recent
years have made great efforts toward reestablishing the stability of currencies after the disasters of the war and postwar inflation. The
destruction of this work would mean an
extremely disquieting setback, which would be
heavy with consequences. The maintenance
of the stability of the German currency, as of the
currency of any debtor nation, may be placed
in the greatest peril if the confidence of investors
is lost.
We appeal to the governments on whom the
responsibility for action rests toT permit of no
delay in coming to decisions w hich will bring
an amelioration of this grave crisis which
weighs so heavily on all alike.
This report has been written in the English,
French, German, and Italian languages.
(Signed) ALBERTO BENEDUCE, Chairman.
Dr. RUDOLF G. BINDSCHEDLER
H. COLIJN
G. DIOURITCH
E. FRANCQUI
WALTER T. LAYTON
C. MELCHIOR
D. NOHARA
CHARLES RIST
O. RYDBECK
WALTER W. STEWART
BASEL,
December 23, 1931.
ANNEXES
ANNEX I.
Application by German Government
To the PRESIDENT, THE BANK FOR
INTERNATIONAL SETTLEMENTS, BASEL.
Mr. PRESIDENT: In the name of the German
Government I have the honour to transmit to
the Bank for International Settlements in
Basel a Memorandum, in which the German
Government applies for the convocation of the
Special Advisory Committee for which provision is made in the New Plan.
I have the honour to remain, Mr. President,
Faithfully yours,
(Signed)
H. DIETRICH,
Finance Minister of the Reich.
BERLIN, W. 8., November 19, 1931.
MEMORANDUM
The German Government hereby applies for
the convocation by the Bank for International
Settlements in Basel of the Special Advisory
Committee for which provision is made in
the New Plan of the Hague Agreement of
January 20, 1930. In regard to the cause and
purpose of this application the German Govvernment has the honour to make the following
statement:
As early as the beginning of June of this year
the German Government became convinced
that, in spite of the most severe retrenchment
in Government expenditure and repeated increases in the burden of taxation, it would be
incapable of continuing the payment of the
JANUARY, 1932
FEDERAL RESERVE BULLETIN
annuities under the New Plan. The economic
and financial situation of Germany was at the
time already most gravely threatened. The
German Government had accordingly decided
to draw the necessary conclusions from this
situation.
This decision was followed on June 21 by
the declaration of the President of the United
States of America, proposing the postponement during one year of all payments on intergovernmental debts, reparations and relief
debts. The purpose of the far-sighted initiative thus taken was, in the words of the declaration, to assist in the re-establishment of confidence, thus forwarding political peace and
economic stability in the world; the debtor
countries were to be given time to recover their
national prosperity. The hope that this proposal would bring about a decisive turn in the
world crisis was not realised. In consequence
of subsequent events, the Hoover holiday year
was not in itself sufficient to overcome the
danger of collapse. Accordingly, the British
Government in July took the initiative of
summoning the London Conference. The recommendations of the conference led to the
prolongation of the rediscount credit accorded
to the Reichsbank, the Basel Standstill Agreement and the Report of the Basel Committee
of Experts set up by the Bank for International
Settlements.
Important as all these measures were for
immediate relief, they were essentially merely
preparatory in character. The London Conference itself in its closing declaration stated
that the measures recommended were only
intended as a first step which would form a
basis for more permanent action to follow.
Accordingly, the experts who collaborated in
the execution of the London recommendations
constantly had in mind the provisional character of all these measures. The Standstill
Agreement states, for example, that the contracting parties have approved the settlement
therein provided "pending a more permanent
solution of the German short-term indebtedness problem." Similarly the Report of the
Basel Committee of Experts closes with an
urgent appeal to the Governments concerned
to "lose no time in taking the necessary measures for bringing about such conditions as will
allow financial operations to bring to Germany—and thereby to the world—sorely
needed assistance."
In the intervening months the economic and
financial situation of Germany has become
31
exceedingly critical. The characteristic facts
of this situation are universally known. In
other countries also the pressure of the crisis
has had a most serious effect. The world has
come to realise in an increasing measure the
interrelationship of the various financial problems to which the situation has given rise, and
the necessity for immediate action for their
solution as a whole. In considering the most
suitable method of handling this problem the
view has gained ground that the Special
Advisory Committee should now be convened.
As under the terms of the New Plan the convocation of the Special Advisory Committee
is dependent upon an application by the
German Government, the German Government has determined to make this application,
m order to do all in its power to pave the way
for comprehensive and joint measures on the
part of the Governments.
In accordance with the New Plan the
application requires a declaration by the German Government to the effect that "they have
come to the conclusion in good faith that
Germany's exchange and economic life may be
seriously endangered by the transfer in part or
in full of the postponable portion of the annuities." In making this declaration, the
German Government must expressly state that
such a declaration does not do justice to the
present situation. Since the New Plan was
framed, the economic and financial situation in
the world, and particularly in Germany, has
been fundamentally altered by a crisis without
parallel. As the New Plan requires the committee to examine the situation from all points
of view, the Special Advisory Committee must
investigate the problem in its entirety by
taking into consideration all its factors, with
special reference to the circumstance that the
question of Germany's private indebtedness
must duly form the subject of a new settlement
before the end of the month of February next,,
by means of an agreement to be reached
between foreign creditors and German debtors.
Present conditions being such that the
necessary measures require to be taken with
the utmost dispatch, the German Government
proposes that the Special Advisory Committee
should meet immediately and that it should
complete its work as quickly as possible, in
order that a Conference of those Governments
which are competent to take the decisions
then to be reached may thereupon at once be
held.
BERLIN, November 19, 1931.
32
FEDERAL RESERVE BULLETIN
ANNEX II
Report of the Subcommittee on Statistics Regarding
Interest and Amortization of German Foreign
Indebtedness
The German Delegation at the plenary session
of the committee has presented estimates of
interest on Germany's foreign indebtedness and
of amortisation on funded debt. These estimates have evidently been computed with great
care. The task assigned to this subcommittee
was to examine these computations and to pass
judgment upon the degree of their accuracy, or
at least upon the extent to which they may be
considered as representative.
As a general statement it should be said that
all such statistics are to be accepted only with
due allowances for differences of opinion regarding classification, etc., for unavoidable duplication, for omissions, and for minor errors of
compilation.
The committee was not in a position to check,
in detail, the basic figures from which these
computations were derived. The figures in
question are those presented by the German
Delegation to the Advisory Committee showing
a total German foreign indebtedness of between
28,500,000,000 and 30,000,000,000 reichsmarks
($6,788,700,000 and $7,146,000,000) as at the
end of July, 1931. A large part of these statistics has been compiled as a result of an inquiry
made by the Reichsbank. The results of this
enumeration have been examined by the subcommittee with the idea of checking them so
far as possible with comparable information in
other countries.
In addition to the statistics compiled from
the inquiry, some of the figures presented by
the German Delegation have been based upon
estimates which it is not possible to check with
any degree of precision. In the case of some
of these estimates, however, the subcommittee
makes with all necessary reservations certain
tentative suggestions.
A. LONG-TERM DEBT
The long-term debt has been divided into
four groups, which are treated separately.
1. GERMAN FOREIGN CURRENCY BONDS ISSUED
ABROAD
This group of obligations is probably capable
of more exact statistical determination than
any other, and without question the statistical
basis for computation of interest and amortisation charges is more precise than in the other
types of indebtedness. The German Delega-
JANUARY, 1932
tion has tabulated the following three items for
the year 1932:
[In millions]
Reichsmarks
(a) Annual interest payments provided in the
indenture of the bond
(b) Annual amortisation charges as and if provided in the indenture of the bond
_..
(c) Total payments in each year for bonds maturing in that year not retired by means of
regular amortization payments
In addition the service for interest and amortisation of the so-called Dawes and Young Loans
is shown separately from the above-mentioned
items for other public and private issues
Dollars
398.4
94.9
128.8
30.7
110
26.2
181.2
43.2
These computations were made for each issue
in accordance with the amount outstanding at
the end of December, 1930, w^b. allowances for
amounts retired. The total interest and amortisation charges as thus computed for the year
1932 amount to 818,000,000 reichsmarks ($194,847,600).
This estimate is a maximum figure. The
following factors would tend to reduce it:
(a) Lower market prices of the bonds permit
purchases for amortisation at a smaller outlay
than that computed.
(b) Depreciated currencies permit similar
reductions in reichsmark interest and amortisation charges on bonds expressed in such
currencies.
(c) Previous purchases by residents of Getmany of German foreign currency bonds reduce
the amounts to be paid outside Germany.
It is difficult to estimate the possible effect
of these various factors, but the committee
considers that the total figure is susceptible of
a maximum reduction of approximately 150,000,000 reichsmarks ($35,730,000). In this
way interest charges would amount to between
420,000,000 reichsmarks ($100,044,000) and
530,000,000 reichsmarks ($126,246,000), and
amortisation to between 250,000,000 reichsmarks ($59,550,000) and 290,000,000 reichsmarks ($69,078,000).
2. LONG-TERM
DEBTS NOT ISSUED
PUBLICLY
This second category of long-term debts is
subdivided into two groups:
(a) Mortgages on real estate, amounting to
715,000,000 reichsmarks ($170,313,000.)
(b) Long-term advances and open-book accounts of every kind, amounting to 1,748,000,000 reichsmarks ($416,373,600).
These figures were compiled from the Reichsbank inquiry and it is this category which
showed the greatest difference between previous
estimates and the new computation of German
indebtedness.
JANUARY, 1932
33
FEDERAL RESERVE BULLETIN
For the purpose of estimating the service of
these obligations an average interest rate of 8
per cent per annum had been taken in the German estimate for the first group. The obligations are subject to the terms of the recent
emergency decree and the rate of interest has
been accordingly reduced to 6 per cent. The
service as computed is thus lowered by 14,000,000 reichsmarks ($3,334,800) and fixed at
43,000,000 reichsmarks ($10,242,600).
For the second group a rate of 6}^ per cent
was assumed. This rate was not directly affected by the emergency decree and it is too
early to know what the ultimate effect may be.
The subcommittee has no means of checking
these assumed rates of interest. They seem
reasonable in view of the prevailing level of
interest rates in Germany during the past few
years. The figure of 113,000,000 reichsmarks
($26,916,600) given in the German estimates
has accordingly been adopted by the subcommittee.
3. GERMAN INTERNAL BONDS OWNED BY FOREIGNERS
The magnitude of this amount—400,000,000
reichsmarks ($95,280,000)—was derived by a
process of approximation, based upon a previously known figure and a logical inference
regarding the influence of subsequent events.
There is no way of determining the accuracy
of the guess. In any case the amount is small
and the interest burden negligible. As a result
of the recent decree the German estimate of
interest burden may be reduced by 12,000,000
reichsmarks ($2,858,400) and fixed at 24,000,000 reichsmarks ($5,716,800).
4. SHARES, PARTICIPATIONS, REAL ESTATE, ETC.
ing industrial depression, perhaps to as low a
figure as 100,000,000 reichsmarks ($23,820,000).
B. SHORT-TERM DEBT
The estimates for the service of the shortterm debts are perhaps the most difficult on
which to pass judgment.
The calculations of interest—709,000,000 to
825,000,000 reichsmarks ($168,883,800 to $196,515,000)—presented to the Advisory Committee were based upon the figures for German indebtedness for the end of July. These figures
seem capable of reduction. Since July repayments have taken place (a sum of 1,200,000,000
reichsmarks ($285,840,000) has been given by
the German Delegation), and, moreover, there
has been a depreciation in certain currencies in
which a portion of the debt is expressed. Final
figures of the amounts repaid during the period
in question are not yet available, and the rates
of interest which will be chargeable in the future are, to a large extent, dependent upon the
decisions of the present Standstill Committee.
With the material at our disposal and leaving
out of account the possible variations in the
future rates of interest, the subcommittee consider that a reduction in the total interest of
about 100,000,000 reichsmarks ($23,820,000)
to 600,000,000 reichsmarks ($142,920,000)—
725,000,000 reichsmarks ($172,695,000) seems
reasonable.
Summarising, therefore, the results of the
subcommittee's deliberations on this subject,
and taking into full account all reservations previously made, the gross service of German foreign debt for the year 1932 could be tentatively
estimated as follows:
[In millions]
Reichsmarks
Dollars
No adequate statistics are available regarding foreign holdings of these types of assets.
debt:
It has been estimated by the Reich Statistical A. Long-term
(1) Foreign currency bonds—
Office that real estate owned by foreigners may
(a) Amortisation *_
60—69
250—290
(6) Interest
_
420—530
100—126
be valued at approximately 2,000,000,000
670—820
160—195
reichsmarks ($476,400,000). Shares, participa(2) Long-term debts not issued pubtions, etc., in German enterprise owned by
156
37
licly
(3) German internal bonds
24
6
foreigners have been estimated, on the basis of
(4) Shares, participations, real estate,
150
&c
36
a partial inquiry, at between 2,500,000,000
143—167
600—700
reichsmarks ($595,500,000) and 3,500,000,000 B. Short-term debt
1,600—1,850
381-441
Total
reichsmarks ($833,700,000).
The yield on real estate has been computed »Including an amount of 110,000,000 reichsmarks ($26,202,000) for pay
by the Reich Statistical Office at 50,000,000 ment
in full of two loans maturing in 1932.
reichsmarks ($11,910,000) per annum.
This report concerns only German payments
The yield on shares, etc., previously estimated by the Statistical Office for 1930 of and does not consider German receipts from
250,000,000 reichsmarks ($59,550,000) should interest, etc., on their investments abroad,
be considerably reduced in view of the prevail- which will be the subject of a later report.
34
FEDERAL RESERVE BULLETIN
ANNEX III
was in fact greater, this alone would provide an
explanation for a portion of the present
Report of the Subcommittee Regarding German Assets
difference.
Abroad
Whereas the first report of the subcommittee
related to interest and amortisation payments
on the German debt, the present report deals
with the foreign investments of Germany and
the income which Germany derives from them.
For these purposes no direct statistics exist,
and, owing to the absolute impossibility of
determining exactly - the volume of German
assets abroad, the subcommittee feels itself
obliged to formulate the necessary reservations
in regard to the accuracy of the estimates
contained in the present report.
The subcommittee, nevertheless, attempted,
in the first instance, to form a direct estimate
of the volume of these assets but encountered
insurmountable obstacles in the almost complete absence of data on which to work. It
was compelled to recognise that certain elements are entirely beyond the bounds of its
investigations, and that, generally speaking,
the figures on which its discussions were based
allow of a wide margin of error.
II
The subcommittee, therefore, endeavoured
to reach some result by taking as a starting
point the increase of 6,000,000,000 reichsmarks
($1,429,200,000) in the volume of Germany's
international indebtedness over the estimates
furnished in August, 1931, and have tried to
determine to what extent a similar figure must
appear in the volume of Germany's foreign
assets.
Ill
The new figure of the German debt need not
necessarily imply a corresponding increase in
German assets abroad.
There are, indeed, certain conjectures that
offer a theoretical explanation of the present
difference between the balance of indebtedness
and the result of the various balances of payments of the previous years. But it is evidently impossible to state in figures, even
approximately, the practical consequences of
these conjectures.
(1) Previous estimates of Germany's net
claim on foreign countries have been computed
from a base figure of 2,900,000,000 reichsmarks
($690,780,000) as at the end of 1923. # Assuming that in that year Germany's foreign debt
JANUARY, 1932
(2) Assuming that the statistics of the balance of payments for 1924 to 1930 contain
only errors insignificant in amount, but tending
in the same direction, a further portion of the
difference could also be explained in this way.
Obviously, minor errors continuing over a period
of years would amount in the aggregate to a
substantial total.
Such statistics are always subject to error;
for instance, the coefficients of adjustment
applied by the Statistische Keichsamt to German foreign trade figures for the years 19241927 may not have been quite correct.
(3) Further, the subsequent emigration of
Germans, who had already invested their
capital abroad during the years under consideration, may create a difference between capital
exports as deduced from the balance of payments and the present total of foreign property.
In so far as the difference of 6,000,000,000
reichsmarks ($1,429,200,000) can not be explained by the above-mentioned items, the
conclusion seems, of course, that Germany's
foreign property must be greater than was
assumed in August, 1931. The subcommittee
was not, however, in a position to estimate the
total amount which should be included under
this head.
IV
The subcommittee has, nevertheless, attempted to obtain at least an idea of the
magnitude of some part of Germany's foreign
property.
(1) So far as Germany's long-term investments are concerned, a total for this item of
5,000,000,000 reichsmarks ($1,191,000,000) has
been tentatively suggested. This total, the
result of calculations and inquiries by German
institutions, may be incomplete. No means
exist, indeed, for assessing the full amount of
foreign bonds in the hands of German nationals.
Such bonds and shares as are included in the
German total have been taken at their nominal
value. For real estate, participations and so
forth, the value of 1929 has been taken owing
to the lack of later information.
(2) The short-term claims of Germany are
even more difficult to assess. The lengthy
terms which Germany has extended in respect
of her exports has resulted in the building up
of considerable claims abroad. On the basis
of an average monthly exportation of 800,000,000 reichsmarks ($190,560,000) and average
credit terms of three months, these credits
JANUARY, 1932
might be estimated to amount to about
2,400,000,000 reichsmarks
($571,680,000).
The subcommittee would, nevertheless, point
out that, in view of the fact that the German
exporters have been led lately to increase the
length of their credits, an average of three
months might possibly be too low. For instance, the Russian credits with State guarantee
extend up to 12 to 18 months on the average.
(3) At the end of July foreign claims by the
Reichsbank and German banks were computed
at 1,300,000,000 reichsmarks ($309,660,000).
By November this total had fallen to 1,000,000,000 reichsmarks ($238,200,000). A deduction has, however, to be made from these totals
because part of the foreign claims of German
banks is already included in the estimate for
commodity credits. It has been stated that
this deduction should amount to 300,000,000
reichsmarks ($71,460,000), thus reducing the
figures to 1,000,000,000 reichsmarks ($238,200,000) and 700,000,000 reichsmarks ($166,740,000), respectively.
For the above three items, therefore, aggregate nominal amounts of 8,400,000,000 reichsmarks ($2,000,880,000) (July) and 8,100,000,000 reichsmarks ($1,929,420,000) (November) are obtained; but the subcommittee is
convinced that, due to the important capital
emigration which has taken place recently,
these totals must be considerably increased.
In the absence of evidence of any kind, it is
unable to give an estimate.
It is, accordingly, not possible to provide an
estimate for the total property owned by
Germany abroad.
V
The subcommittee was also asked to inquire
into the amount of interest which Germany
might expect to receive during the year 1932.
Clearly, this second problem is closely connected with the first and the subcommittee has
found it impossible to provide a satisfactory
solution.
(1) If an amount of 5,000,000,000 Reichsmarks ($1,191,000,000) is taken for long-term
assets at an average rate of 3-4 per cent, the
yield from such investments would amount to
from 150,000,000 to 200,000,000 reichsmarks
($35,730,000 to $47,640,000).
(2) For commodity credits no specific income
from interest can be estimated; interest on
capital of this kind being generally included in
the price of the commodities and so in the
balance of trade. Russian credits, however,
are an exception to this rule, and the subcom-
35
FEDERAL RESERVE BULLETIN
mittee has accordingly included an item of
about 50,000,000 reichsmarks ($11,910,000).
(3) For the foreign claims of the Reichsbank
and private banks 30,000,000 reichsmarks
($7,146,000) have been taken as a reasonable
figure for interest.
These items together give interest receipts
totaling 230,000,000-280,000,000 reichsmarks
($54,786,000-$66,696,000).
For the calculation of interest on other German capital, so far as this is not included under
the above headings, the subcommittee, as
already explained, has no computation of the
capital involved on which to base its estimates.
Nor is information available as to the rate of
interest on this capital or to what extent that
interest finds its way to Germany.
The conclusion was finally reached that
for 1932 German interest receipts on foreign
investments might be put in round figures at
between 300,000,000 and 400,000,000 reichsmarks ($71,460,000 and $95,280,000).
Obviously, the subcommittee is not expected
to express an opinion as to future economic
conditions or to say what the rates of interest
are likely to be in 1932. Conclusions which
have been drawn take account of present conditions only, and should be accepted with reserve
in view of the prevailing economic instability.
ANNEX IV
Report of the Subcommittee on the German Budget
The subcommittee was appointed to consider,
with the assistance of the German experts, the
situation of the German budget. The subcommittee, while devoting its attention primarily to the present state of the budget, has
not failed to consider the broad lines of the
development of the budget in the past, in order
to be in a position to understand the causes
which have led to the present serious financial
difficulties of the German Reich.
In particular, the subcommittee has considered the development of the total expenditure, not only of the Reich, but also of the
Federal States and Municipalities, and has paid
special attention to the expenditure of these
bodies on housing, education, and social
welfare.
TOTAL EXPENDITURE OF PUBLIC AUTHORITIES
IN GERMANY
In dealing with the development of the total
expenditure of German public authorities,
the subcommittee was unable to take its
inquiries up to the year 1931, since exact
36
FEDERAL RESERVE BULLETIN
figures are not yet available for the expenditure
of the Communes in 1931. The subcommittee
noted that the total gross expenditure of
German public bodies increased between the
financial years 1926 and 1930 from approximately 17,200,00p,000 reichsmarks ($4,097,040,000) to approximately 20,963,000,000 reichsmarks ($4,993,386,600), an increase of 3,763,000,000 reichsmarks ($896,346,600). This increase was not spread equally over the intervening years, but was particularly sharp in
the year 1928. This was due to the increase of
salaries granted to public servants by the law
regarding salaries of 1927, which the German
experts estimated led to a total annual increase
of 1,500,000,000 reichsmarks ($357,300,000).
It was pointed out that, since 1925, there had
been a steady increase in the level of wages in
Germany from the low point at which they
stood after the inflation. No corresponding
increase of salaries had taken place, and, therefore, in 1927 the German Government felt
itself obliged to adjust salaries to wages, with
the result that, generally speaking, the lower
classes of officials had their real income restored to approximately the 1913 level, while
the higher classes (with certain exceptions)
remained well below that level. Now, however,
as a result of recent emergency decrees, the
increase of salaries made in 1927 has been
more than canceled, and salaries will now be
pn a lower level than they were before the
increase.
The remaining principal causes of the increase of 3,700,000,000 reichsmarks ($881,340,000) are to be found under the heads of
"Education/' "Social Welfare," "External
War Burdens/' and "Trade and Commerce."
The increase in expenditure on "Education" is
principally—though not entirely—due to the
higher level of salaries; that in "Social Welfare" to expenditure of unemployment relief,
while the increase in expenditure of "Trade
and Commerce" represents the assistance
which the German Government has found itself
forced to give to agriculture, communications,
and industry. These items must necessarily be
enhanced by the development of the crisis, and
will show a further increase in the current year.
No explanation is needed of the increase in
external war burdens.
Thus, the following items account, roughly,
for the total increase of 3,700,000,000 reichsmarks :
JANUARY, 1932
[In millions]
Reichsmarks
Increased expenditure on salaries since 1927
Increased expenditure on uneinplo3onent___
Increased expenditure on external war burdens
Miscellaneous
_ „
1,500
1,000
500
700
Dollars
357
238
119
167
The subcommittee wishes to draw attention
to the fact that of this increase of expenditure
of 3,700,000,000 reichsmarks, an amount of
1,600,000,000 reichsmarks ($381,120,000) is for
account of the Reich and 2,100,000,000 reichsmarks ($500,220,000) for account of the States
and Communes.
In connection with the revenue side of the
Budget, the subcommittee observes that, during
the years 1926-1929, years of industrial and
commercial prosperity, the fiscal revenues developed from 11,675,000,000 to 14,298,000,000
reichsmarks ($2,780,985,000 to $3,405,783,600),
showing a total increase of about 2,600,000,000
reichsmarks ($619,320,000).
This development during the period of expansion was followed by a drop since 1929-30,
which would have been almost as rapid except
for the fact that tax increases almost equalling
previous reductions were on several occasions
introduced.
THE RELATION BETWEEN REICH AND LOCAL
AUTHORITIES
The subcommittee, nevertheless, felt that
some part at least of the increase in the total
expenditure of public authorities in Germany
had arisen from the fact that the financial relations between the Reich, the Federal States
and the Communes permitted the latter in particular to embark upon additional activities
which were paid for out of the share of taxes
levied by the Reich but transferred on a percentage basis to the States and Communes.
As the yield of these taxes rose in times of
prosperity, money flowed into the coffers of
the Communes, and part of their present difficulty is due to the fact that their receipts from
these sources have now fallen off, while their
expenditure can not be easily or quickly reduced
to correspond. The amount of taxes transferred by the Reich in this way to other public
authorities rose from 2,620,000,000 reichsmarks ($624,084,000) in 1926 to a maximum of
3,412,000,000 reichsmarks ($812,738,400) in
1928, and subsequently declined to 3,050,-
FEDEBAL RESERVE BULLETIN
JANUARY, 1932
000,000 reichsmarks ($726,510,000) in 1930
and to 2,321,000,000 reichsmarks ($552,862,200) in 1931. This has forced the Communes
to radical measures of economy, but even these
have not proved wholly sufficient, and some
recourse to the funds of the Central Government has been necessary during 1931. An
improvement has, however, been effected by
the recent emergency decrees of the German
Government, under which the municipalities
have the power, and, in certain circumstances,
the obligation, to levy additional taxes for
themselves. These include a poll tax, a local
beer tax, and a tax on beverages, the unpopularity of which acts as a powerful further
stimulant upon the municipal authorities to
effect economies in their budgets.
EDUCATION
As regards expenditure on education, which
rose from 2,167,000,000 reichsmarks ($516,179,400) (net) in 1926-27 to 2,733,000,000 reichsmarks ($651,000,600) (net) in 1930-31, the
subcommittee took note of the fact that the
increase was principally due to the increase in
the level of salaries of school teachers, etc. It
was, nevertheless, pointed out that expenditure
per head on education was considerably above
the level of certain countries in Western Europe,
although practically equivalent to that in other
countries.
The subcommittee was, however, informed
that expenditure on education in Germany will
show a considerable decrease in the current
year as a result of the lowering of salaries and
other measures taken by the German authorities.
HOUSING
As regards expenditure on housing, which
rose from 861,000,000 reichsmarks ($205,090,200) (net) in 1926-27 to 918,000,000 reichsmarks ($218,667,600) (net) in 1930-31, the
subcommittee received an explanation of the
system by which funds for housing are provided
in Germany from public moneys. The principal source is the tax on house rents, which was
created in 1924 after the inflation, during which
house property had retained the greater part
92948—32 6
37
of its value while investments expressed in
money had been largely rendered worthless.
This tax was devoted partly to the general
financial needs of the Federal States and the
Communes, and partly to filling up the existing
housing shortage. Since different arrangements were made in the various States for carrying out this scheme, no brief statement can
be made of the allocation of the tax on house
rents, but, roughly speaking, 50 per cent was
devoted to housing purposes.
The authorities responsible were in most
cases the Communes, who have frequently
acted through public utility companies, of
which they themselves may be the owners.
Generally, mortgages are only granted out of
funds arising from the house-rents tax when
cover for the total sum required to carry out the
building is assured. That is to say, the funds
provided by the owner of the building himself
and supplemented by a mortgage from a building society are completed by a mortgage
granted from the proceeds of the house-rents
tax. Strict provisions are laid down as to the
type of house which may be built with such
funds, and as to the retention of a charge on the
site until the mortgage is paid off.
The document circulated by the German
Delegation on "German housing during the
post-war period" gives in considerable detail
the extent of building activity, the method of
financing and the amount of public funds involved in such financing. The subcommittee
noted that the greater part of the money spent
on housing has been raised by taxation. A
certain amount of the money spent on housing
has, however, been raised by loans, and the
document referred to showed that this amounts
to approximately 25 per cent of the amount
spent by public authorities in the year 1928.
This proportion is stated to have been generally
applicable, so that it appears that the outstanding liability of public bodies in respect of
housing may, for the years 1926-27 to 1930-31,
be in the neighbourhood of 2.000,000,000
reichsmarks ($476,400,000). Out of the total
of 306,000 houses erected in the calendar year
1930, 240,000 have been erected with some
sort of assistance from public funds.
38
FEDERAL RESERVE BULLETIN
JANUARY, 1932
DEVELOPMENT OF PUBLIC DEBT
In this connection, the German member of
the subcommittee supplied the following table
showing the development in the last three years
of the total debt of all public authorities in
the Reich:
[In millions]
Reieh
Federal States, including Hansa
towns
Total at—
Reichsmarks
31.3.1928
31.3 1921*
31.3.1930
31.3.1931
_
7,130. 7
8, 228. 5
9,623. 6
11,342. 2
Dollars
1,698.5
1,960.0
2,293.8
2,701. 7
Communes and
associations of
communes
Reichsmarks
1,693.2
2, 201. 4
2,590. 2
2,802.5
Dollars
403.3
524.4
617.0
667.6
Total public administration
Total at—
Reichsmarks
31.3.1928
31.3.1929
31. 3.1930
31.3.1S31
. .
5, 774. 7
• 7,729.3
9,098. 7
9,934. 2
Dollars
Reichsmarks
1,37o. 5
1,841.1
2,167.3
2,366. 3
14, o&8. 6
18,159.2
21,318.5
24,078. 9
Dollars
3,477. 4
4,325.5
5,078.1
5,735. 6
The increase in the public debt has been less
marked in each year since 1928. (Net increase
in the three years: 3,600,000,000 reichsmarks
($857,520,000), 3,200,000,000
reichsmarks
($762,240,000), and 2,800,000,000 reichsmarks
($666,960,000).) The credit requirements accumulated after the currency stabilisation were
gradually satisfied and certain tasks with high
capital requirements devolving upon the public authorities (e. g., construction of dwelling
houses) were to some extent accomplished.
On the other hand, the ever-growing tension
on the credit market since the end of 1929 prevented an expansion of the debt.
Of the total increase of 9,480,000,000 reichsmarks ($2,258,136,000) in the years 1928 to
1931, more than 2,000,000,000 reichsmarks
($476,400,000) were in respect of claims in the
debt register for war damages and Polish
indemnities and of Reparation loans of the
Reich (two-thirds of Young Loan), which
entailed a burden for interest and amortisation but brought no new capital which could be
employed.
The subcommittee notes that out of the total
increase of debts in the amount of 9,480,000,000
reichsmarks '($2,258,136,000), 4,160,000,000
reichsmarks ($990,912,000) were contracted by
the municipalities from the end of 1928 down
to the end of March, 1931.
I
On Mar. 31, 1931, the debt total was accordingly. J
Including the following items:
Old debts and debts incurred or authorised
prior to Apr. 1,1924
_
I
Thus leaving a new debt of approximately
*
Including the following items:
j
Dawes and Young loans, claims in the j
Debt Register in virtue of the final war
damage law and the decree on damage I
incurred in Poland, etc
Supply of water, gas, and electricity and |
transport undertakings
|
Construction of dwelling houses
j
Construction of roads and waterways
>
Productive unemployment relief, con- I
struction of hospitals, sanatoria, etc
j
I
24.1
5.7
6.0
18.0
1.4
4.3
3.4
.8
2.8
2.5
2. 5
.7
1.6
.4
T H E B U D G E T S F O R 1931 A N D 1932
Apart from discussing the points mentioned
above, the subcommittee saw little advantage
in inquiring at any length into the details of
the German budget prior to the year 1930.
Not only are these details fully analysed in the
reports of the Agent General for Reparation
Payments which are familiar to the world, but
also the estimates appearing in the German
budget are now framed, owing to the crisis and
owing to the measures taken by the German
Government, under quite different conditions.
The figures supplied by the German Delegation
show that the effect of the economic crisis
quickly showed itself in the revenue receipts of
the German budget, and that falling off in
revenue became progressively more pronounced
until, at the present time, it has assumed catastrophic proportions. This is well indicated by
the fact that the yield from the assessed income
tax, which in 1929 amounted to 1,440,000,000
reichsmarks ($343,008,000), will fall in the
current year to below 1,000,000,000 reichsmarks
($238,200,000), while for 1932 it can only be
estimated at 700,000,000 reichsmarks ($166,740,000). This means a decline of over 50 per
cent since 1929. Similarly the, Corporation Tax,
which yielded 560,000,000 reichsmarks ($133,392,000) in 1929, is estimated to produce only
300,000,000 reichsmarks ($71,460,000) in 1931,
and only 120,000,000 reichsmarks ($28,584,000)
in 1932, representing a decline of nearly 80 per
cent. Although the German Government has
resorted to a series of emergency measures
to increase taxation, they have been entirely
unable to produce sufficient revenue to meet
normal expenditure, which has, therefore, had
to undergo sweeping reductions. So far as the
Reich is concerned, expenditure on all objects
other than service of the debt, transfers to
the Federal States, external war burdens and
emergency relief has been reduced from 1929
JANUARY, 1932
FEDERAL RESERVE BULLETIN
to 1931 from 4,780,000,000 reichsmarks to
4,150,000,000 reichsmarks ($1,138,596,000 to
$988,530,000), i. e., a reduction of 13 per
cent. Measures similar in character have
been taken by the Federal States and by the
Communes. The latter have been empowered
to make reductions, and in any cases where
this power has not been taken advantage of,
the competent higher authority steps in to see
that the necessary measures are taken. Part
of the economies effected have, however, been
offset by the increased cost of unemployment
relief due to the growth of unemployment in
the last two years. It has been possible to
effect considerable economies in this sphere by
reducing the average monthly benefit paid to
the unemployed, which, from a former average
of 80.93 reichsmarks ($19.28) has fallen to 63.86
reichsmarks ($15.21) in 1931. Expenditure
under the emergency relief system, which
averaged 71 reichsmarks ($16.91) a month, has
dropped to 60.75 reichsmarks ($14.47), while
welfare relief payable by the Communes—
varying according to the locality—may be
estimated probably in the neighbourhood of
50 reichsmarks ($11.91).
In the opinion of the subcommittee the
above figures show very clearly the ruthless
economy which the falling off in revenue has
compelled the German Government to exercise
in all classes of its expenditure.
The subcommittee thereafter turned to an
examination of the sketch budgets for the
years 1931 and 1932 which had been circulated
by the German Delegation and explained by
Count Schwerin von Krosigk to the main
committee. The subcommittee analysed the
figures contained in these sketch budgets in
some detail.
Taking, first, the sketch budget for 1932
as it has been framed by the German Delegation, and which, at the request of the experts,
does not contain any item of expenditure
which is or might be the consequence of payment of reparations, the subcommittee noted
that the principal measure introduced by the
emergency decree of December 8th on the
revenue side was an increase in the turnover
tax from 0.85 per cent to 2 per cent, i. e., an
increase of over 130 percent. The yield of the
tax had, however, been increased only by 100
per cent. The German Finance Ministry had
thus allowed for a falling off in the theoretically increased yield of 14 per cent. Since,
however, the recent emergency decree also
contemplates a general reduction in the price
level of 10 per cent, the theoretical reduction
in yield may not be much more than 5K per cent.
39
The subcommittee then turned to an examination of the estimates of revenue for the
fiscal year 1932.
Under full reserve of the difficulty of giving
exact estimates in present conditions, the German member of the subcommittee presented
certain figures which proved that, against an
increase of certain taxes (mainly the increased
turnover tax), others showed a decrease in
yield which was about equal to the estimated
increases.
The subcommittee felt unable, with the
knowledge at their disposal, to criticise the
estimates prepared by the German taxation
experts. Nevertheless, they formed the opinion
that the figures before them could not be considered as showing the situation in an unduly
pessimistic light. As far as some sources of revenue are concerned, there seems to be even serious reason to fear that the estimated figure will
not be reached.
Turning to the estimates of expenditure, the
German member of the subcommittee explained
that internal war charges would be reduced in
1932 because the recipients of war pensions
were fewer in numbers and because, under
recent decrees, the rates of payments had been
reduced. Expenditure on personnel was reduced as an effect of the new emergency decree.
Miscellaneous expenditure maintained the reduction effected for the present year under
recent emergency decrees, and it was doubtful
whether this hope would be realized even
though the fall in prices would give some assistance.
As regards social charges, the German
member of the subcommittee referred to the
explanations he had already given to the main
committee as to the danger of reducing the
amounts paid for unemployment and poor
relief, and showed that it was incumbent upon
the Reich to provide those municipalities
which were particularly hard hit by the present crisis with some assistance toward meeting their obligations in this respect. He
doubted whether the figure shown in the sketch
budget for 1932 would, in fact, be sufficient in
view of the continuance of the crisis.
The subcommittee devoted special attention
to the item for the public debt. As had been
explained in the main committee, the figure of
1,420,000,000 reichsmarks ($338,244,000) for
1932 contains approximately 870,000,000
reichmarks ($207,234,000), which will go in the
reduction of debt. Four hundred and twenty
million reichsmarks ($100,044,000) of this represents the legal sinking fund. A further
350,000,000 reichsmarks ($83,370,000) repre-
40
FEDEEAL EESERVE BULLETIN
JANUARY, 1932
sents the amount necessary to cover the deficit hope of recovery in the budget situation, and
remaining from 1930, which had risen solely on that, even if a speedy reversal should take
the ordinary budget, and in accordance, not place, it must be some time before the budget
only with the Fundamental Budget Law of Ger- will benefit therefrom and return once more to
many, but also in accordance with all principles a sound basis.
of sound public finance, should be covered withANNEX V
out delay. The remaining 100,000,000 reichsmarks ($23,820,000) is in respect of Treasury
Report of the Subcomittee on the Reichsbahn
bonds maturing in 1932.
It was pointed out to the subcommittee that
The subcommittee has examined the position
the repayment of this amount of debt during a of the German Railway Company, as shown
year of severe crisis represented a very heavy by the information furnished by the German
burden on the German budget. Should these Delegation. During the years 1925 to 1930
figures be fulfilled, approximately one-half of the operating receipts and payments of the
the floating debt would be repaid and one- Reichsbahn were as follows:
eleventh of the total debt of the Reich. While
[In millions]
this consideration was fully appreciated by the
German member of the subcommittee, he
1925
1926
1927
pointed out that the situation of Germany was
that the budget had exhausted its last resource;
ReichsReichs- D o l l a r s * ^ Dollars marks Dollars
should the estimates of taxation prove optimark?
mistic or should expenditure have to be incurred
in excess of that shown, the German Govern- Receipts__.
5,039
4,o69 1,112 I 4,540 1,081
1,200
3,974
947 I 3,680
4,158
990
877
ment would have no recourse save to call upon Payments..
of receipts
the amounts included for the reduction of debt, Excess
165 |
over payments
860
205
880
210
i. e., to incur a further deficit.
85.1 !
85.1
81.0
81.0
82.5
Working coefficient
82.5
Without expressing a definite opinion as to
1928
1929
1930
the figure included in the sketch budget for
1932 for redemption of floating debt, which
Reichs- Dollars Reichs- Dollars Reichs- Dollars
figure, amounting to 870,000,000 reichsmarks
marks
marks
marks
($207,234,000), as compared with the total
debt of the Reich, seems very considerable, the Receipts...
5,159 1,229
4,570
5,353 1,275
1,089
subcommittee could not but feel, having regard Payments..
4,294 1, 023
4,090
4,493 1,070
974
to the alarming increase of the total public Excess of receipts
864
480
206
205
114
over payments
860
debt of Germany shown in the figures given Working
83.2
83.2
83.9
89.5
83.9
coefficient89.5
above, that it is vital for the German Government to pursue the firmest possible policy of
debt reduction in order that the burden of
The above comparison shows that, after
debt may not become insupportable, and they payments had been met, operating receipts in
consider that the German Government would each of the years from 1925 to 1929 left a surnot be justified unless it included in the plus well in excess of the reparation tax of
budget a substantial provision for this purpose. 660,000,000 reichsmarks ($157,212,000). The
The subcommittee has not felt it its duty to average amount of the surplus was 833,000,000
offer an opinion as to the probability or other- reichsmarks ($198,420,600). During the period
wise of the estimates laid before them with all in question receipts rose progressively from
reserve on behalf of the German Delegation. 4,669,000,000 reichsmarks ($1,112,155,800) to
They consider that the course of the German 5,353,000,000 reichsmarks ($1,275,084,600),
budget during the last two years has shown representing an average increase of 171,000,000
how the progressive deterioration in the reichsmarks ($40,732,200), or 3.5 per cent per
economic life of Germany has led in due course annum.
to a falling off in revenue, which has in time
During 1930 the world economic crisis found
become catastrophic. The subcommittee has expression in a marked decline in traffic and in
no opinion as to the probability or otherwise receipts, which fell 5.5 per cent in the case of
of an early reversal of the present downward passenger traffic and 18 per cent in the case of
movement in business activity, not only in goods traffic, the total drop being 783,000,000
Germany, but in the whole world. They reichsmarks ($186,510,600), or 14.6 per cent.
wish to do no more than point out that, unless Operating payments were energetically curthis movement is reversed, there can be no tailed and were reduced by 403,000,000 reichs-
JANUARY, 1932
FEDERAL RESERVE BULLETIN
marks ($95,994,600). The surplus of receipts
over payments nevertheless fell to 480,000,000
reichsmarks ($114,336,000), being thus 180,000,000 reichsmarks ($42,876,000) short of the
sum required to cover the reparation tax.
In 1931 the economic crisis has become still
more intense and receipts are expected to fall to
3,860,000,000 reichsmarks ($919,452,000),^ being a further diminution of 710,000,000 reichsmarks ($169,122,000), or 15.8 per cent. By
comparison with 1929, therefore, the decline in
receipts in 1931 will probably aggregate 1,500,000,000 reichsmarks ($357,300,000), or 28 per
cent. In view of this marked drop in traffic,
the Reichsbahn has naturally had to reduce
expenditure in every possible wTay. Its representatives have explained that the economies
realized in 1931 are estimated at 18 per cent of
the expenditure total. They relate both to the
programme of works and new orders and to the
expenditure on personnel. The staff has been
reduced by 30,000 in 1931 as compared with
1930. To-day it numbers 6 per cent less than
before the wTar and 42 per cent less than in 1919,
when the personnel total was, it is true, unduly
inflated.
In short, operating receipts in 1931 are estimated at 3,860,000,000 reichsmarks ($919,452,000) and payments at 3,682,000,000 reichsmarks ($877,052,400), leaving a surplus of
receipts over payments in the amount of
178,000,000 reichsmarks ($42,399,600).
The reparation payments of the company
have been influenced as follows by the putting
into force of the Hoover Plan on July 1 last.
The company paid the annual tax during
the first half of the year, making 330,000,000
reichsmarks ($78,606,000). Since then, the
Hoover Plan, while considerably easing the
cash position of the Reichsbahn, has not released it from its reparation charges. In application of the Plan, the Reich pays 51,000,000
reichsmarks ($12,148,200) to the Bank for
International Settlements on the 15th of each
month. On the same date the bank pays a
sum of approximately 45,000,000 reichsmarks
($10,719,000) to the Reichsbahn. In exchange,
the Reischbahn has to hand over certificates
of indebtedness by which it undertakes to repay the loan in ten equal annuities, as from
July 1, 1933. The company does not retain
tlie counter-value of the 45,000,000 reichsmarks, but refunds them immediately, without
counterpart, to the Reich.
For the recording of these transactions, the
company charges to its operating account the
monthly instalment of 45,000,000 reichsmarks
plus a payment of 70,000,000 reichsmarks
41
($16,674,000) for the year, or 35,000,000 reichsmarks ($8,337,000) for the second half of 1931,
which sum is paid to the Reich as a contribution to reparation payments. In 1931 the
company will debit its operating account in
respect of reparation charges with a total
of 330,000,000 -f 270,000,000 -f 35,000,000 = 635,000,000 reichmarks ($78,606,000+ $64,314,000
+ $8,337,000 = $151,257,000).
On the other hand, the company benefits by
the amount of the B. I. S. loans which strengthen
its cash position and will amount to 270,000,000
reichsmarks ($64,314,000) in 1931 and a corresponding total for the first half of 1932. Allowing for the company's contribution of 635,000,000 reichsmarks ($151,257,000) to reparation
payments in 1931, it would appear that the
surplus of operating receipts over operating
payments in the amount of 178,000,000 reichsmarks ($42,399,600) will leave a deficiency of
456,000,000 reichsmarks ($108,619,200). Allowing further for the preference share dividend, the service of new debts and the writing
off of the concession, the deficiency is brought
up to 567,000,000 reichsmarks ($135,059,400).
In order to cover this deficit, it will be necessary
to draw upon the whole of the legal reserve
(450,000,000 reichsmarks ($107,190,000)) and
upon the dividend reserve (76,000,000 reichsmarks ($18,103,200)), after which an uncovered balance of 42,000,000 reichsmarks ($10,004,400) will still remain.
For 1932 the company expects a further drop
of 310,000,000 reichsmarks ($73,842,000) in receipts, which are estimated at only 3,550,000,000 reichsmarks ($845,610,000). As the Government of the Reich is at present endeavouring
to obtain a general lowering of prices, in conformity with the Emergency Decree of December 8th last, the company desired to supiport
the initiative thus taken by deciding to reduce
goods tariffs by some 300,000,000 reichsmarks
($71,460,000) per annum, or 13 per cent. The
reductions apply in part as from December 16,
1931. It must be observed that the measure in
question is a very daring venture, the object of
which is to help bring about a general economic
revival. A reduction of transport tariffs in this
way is quite exceptional under present circumstances, when the railways of many countries
are demanding the increases in rates which are
required in order to balance their budgets.
On the other hand, the Reichsbahn anticipates that Tcuts in wages and in the price of
materials w ill entail a reduction in its expenditure, which is put at 200,000,000 reichsmarks
($47,640,000) for the personnel alone. In the
aggregate, the company estimates its operating
42
FEDERAL RESERVE BULLETIN
JANUARY, 1932
expenditure for 1932 at 3,298,000,000 reichs- marised above, the subcommittee has reached
marks ($785,583,600). The surplus of receipts the following conclusions:
The results obtained by the Reichsbahn may
over payments would then be 252,000,000
reichsmarks ($60,026,400). Allowing during be classified under three heads, according to
the first half year only for the reparation con- the periods to which they relate: the years
tribution amounting, as explained above, to 1925 to 1929, the years 1930 and 1931, and the
305,000,000 reichsmarks ($72,651,000), there year 1932. The figures for 1925 to 1929
remains a deficiency of 53,000,000 reichsmarks show that during this period the annual
($12,624,600) without provision for any repara- average excess of operating receipts over
tion payment in the second half of 1932. It payments amounted to 833,000,000 reichsmarks
must also be noted that the 270,000,000 reichs- ($198,420,600), thus enabling the Reichsbahn
marks ($64,314,000) are returned to the com- to meet the contribution of 660,000,000 reichspany by the B.I.S. in the form of a loan re- marks ($157,212,000) for which it is liable.
payable in ten years.
It might be argued that, from the standIn order to reply to a question asked in com- point of the Reichsbahn, these years were not
mittee, we give below a comparison of the entirely normal, since writings off and replaceworking coefficients obtained during the last ments were not carried beyond a certain limit,
few years and in 1913 by the Reichsbahn and precisely with a view to enabling the Reichssome other railway administrations. These bahn to make its contribution. But it should
coefficients represent, of course, the percentage be noted in this connection that earnings were
f receipts which is devoted to operating pay- well in excess of the contribution, and further
ments, the surplus being available as cover for that the working coefficient, thanks to which
the earnings were obtained, varied during the
capital charges.
years in question between 81 and 85 per cent,
WORKING COEFFICIENTS
a figure comparable with that of the principal
railway systems during the same period.
1913
1929
1930
In 1930, under the influence of the world
economic
crisis, receipts dropped by 14.6 per
83.9
Germany
_
89.5
72.1
cent. The operating surplus fell to 480,000,000
86.5
90.9
72.0
Belgium
96.0
87.2
Italy
88.7
reichsmarks ($114,336,000). To meet its
65.0
78.7
88.3
France
63.5
78.4
80.8
Great Britain
_
_ reparation and other annual charges the
company was obliged to draw upon the balance
brought forward from the previous account.
This table shows that the working coefficients In that year the working coefficient rose to
of the Reichsbahn and of the other railways 89.5 per cent, and a similar increase is to be
have varied from year to year under very noted in the coefficients of other countries.
comparable conditions.
In 1931 the economic crisis became still more
acute. The decline of receipts in two years
CAPITAL CHARGES
amounts to 1,500,000,000 reichsmarks ($357,According to the position as worked out for 300,000), or 28 per cent. To meet its charges
the end of 1931, the total financial commit- the company is compelled to have recourse to
ments, capital and loans, of the German Rail- its reserves. It must be pointed out that these
way Company amount to 2,500,000,000 reichs- charges include the reparation payments,
marks ($595,500,000) in round figures. Among which, in conformity with the Hoover Plan
the principal items in this total are the prefer- and the London Protocol, are in fact returned
ence shares issued for the present to an amount to the company in the form of loans repayable
of 1,081,000,000 reichsmarks ($257,494,200) in ten years as from 1933.
and the Young Loan at present totalling
It appears that in 1932—after allowing for
288,500,000 reichsmarks ($68,720,700); there the decline of receipts and payments which is
is further included the whole of the loan of likely to arise from the general crisis and the
540,000,000 reichsmarks ($128,628,000) granted measures recently enacted in Germany for the
to the company by the B. I. S., to which refer- lowering of tariffs and expenditure—it will not
ence has already been made.
be possible to balance the company's budget.
What will the position of the Reichsbahn be
in 1932 and in subsequent years? The quesCONCLUSIONS
tion was not submitted to the committee,
After examining the figures furnished by the w^hich would in any case have been unable to
German Delegation, which have been sum- find the answer. Obviously, the financial
JANUARY, 1932
FEDERAL RESERVE BULLETIN
results will depend upon the development of
the economic crisis, its duration and intensity,
and also upon the measures which the company
elects to adopt in respect of tariffs and expenditure. In Germany, as in other countries,
experience has shown how sensitive the budgets
of the railways are to changes in the general economic situation, the marked recovery
in Germany in 1925 being a characteristic
example.
Nevertheless, the figures cited above, together with the facts ascertained and the com-
43
parisons made by the experts, would appear to
us to suggest that, once Germany and the world
at large have recovered their balance and returned to something like the economic conditions which we are accustomed to regard as
normal, the Reichsbahn (fundamentally a
sound undertaking) will be able in future years
if managed on a commercial basis to yield a net
operating surplus comparable with that earned
by other big foreign railway systems.
CONFERENCE OF SOUTH AMERICAN CENTRAL BANKS
A conference of delegates 1 of the central B. TO CONSIDER THE SITUATION WHEREIN ADbanks of Bolivia, Chile, Colombia, Ecuador,
VERSE CIRCUMSTANCES NECESSITATE THE SUSand Peru convened on December 2, 1931, at
PENSION OF THE CONVERSION PRIVILEGE AND
Lima, Peru, to consider the common problems
TO SUGGEST HOW GREATER ILLS MAY BE
of those institutions during the present period
AVOIDED
of economic depression. The Federal reserve
Without prejudice to other steps conducive
Bank of New York received and accepted an invitation to be represented at this conference and to reestablishing confidence and equilibrium,
named as its representatives Prof. E. W. Kem- the committee recommends the following measmerer, of Princeton University, Allan Sproul, ures, which are advisable not only for the case
assistant deputy governor of the Federal Reserve in question, but also for avoiding inconvertiBank of New York, and Eric F. Lamb, of its for- bility, the dangers of which are too well known
eign department. While these representatives to be enumerated here.
1. As the amount of the circulating medium
took part in the discussions of the conference,
is
a
fundamental factor in the value of money,
they did not participate as voting members in its
organization or in the adoption of resolutions it is of paramount importance—
drafted by it. The conference adjourned on
(a) That budgetary equilibrium be assured so that
the Government may not find itself obliged to have
December 12.
to the central bank, seeking credits which
An official statement of the questions con- recourse
bring about inflation of the note circulation.
sidered by the conference and of the action
(b) That the regulation of the circulating medium
which it took with respect to these questions be left exclusively in the hands of the central bank, by
means of the discount and rediscount of paper which
follows:
arises from agricultural, industrial, and commercial
in accordance with the terms specifically
CONFERENCE OF SOUTH AMERICAN CENTRAL transactions
provided for in the organic laws of the central banks.
BANKS, LIMA, PERU, DECEMBER 2 TO 12,
It is also recommended that the central banks make
1931
use of open-market operations, when possible, as a
means of aiding in the regulation of the amount of
I
money in circulation.
A. TO CONSIDER THE CASE OF BOLIVIA, WHICH
HAS LINKED ITS CURRENCY " D E FACTO" TO
THE POUND STERLING
2. As a lack of equilibrium in the international balance of payments, with the incidence
against a particular country over a long period,
inevitably causes heavy exports of gold, the
conference recommends that a policy of defense
of the national economy be adopted to correct
such a situation.
Since it is not advisable that the monetary
unit of an American republic be linked absolutely to that of another country, regardless of
how great its economic and political importance
may be, and even though a situation such as
that described, where exchange was linked to C. TO CONSIDER THE RESULTS OF THE CONTROL
the pound sterling in order to prevent the damOF FOREIGN EXCHANGE IN THE VARIOUS
aging or wiping out of the export trade, is comCOUNTRIES
prehensible, the conference deems that such a
Resolution approved by the delegations from
state of affairs should hold only temporarily, it
being essential to establish monetary stability Colombia, Bolivia, and Chile*—The results of
exchange control which have been brought to
through a return to the gold standard.
the attention of the committee are not ample
1
enough to permit the conference to draw a defiA full list of the delegates to the conference is given on page 49.
44
FEDERAL RESERVE BULLETIN
nite conclusion, there being both favorable and
unfavorable aspects to be found. In any case,
the most prudent course is deemed to be, not
to employ exchange control except under grave
circumstances and as a temporary expedient,
according to the particular conditions in each
country.
Resolution approved by the delegations from
Ecuador and Peru.—In taking up this matter,
the conference has tried to keep in mind, above.
all, the fundamental factors determining exchange rates. Having these in mind, the conference deems that any measure which does not
tend to remove these fundamental causes is
merely expressive of a vain effort to control external manifestation of such causes.
Considering, therefore, that the definite
breakdown of a currency is the result of prime
forces of which the rate of exchange is only an
index, the conference does not recommend the
adoption of measures of artificial control because they only affect the external aspect of the
phenomenon which it is desired to dominate,
without affecting the basic causes, the true
origin of which is the real value of the currency
unit relative to other currencies.
The conference deems, moreover, that such
measures create a psychological atmosphere
adverse to the maintenance of stability, for
which reason, the establishment of control
indicates that the currency is in imminent
danger.
When the fundamental factors which bring
about the crisis condition are overlooked, the
problem can not be solved, because if the lack
of positive equilibrium in the balance of payments is due to the high level of prices and
costs of production in the country whose currency is in danger in relation to those of other
countries, exports which are affected by these
conditions and imports which increase as a
result of them continue to aggravate the condition of disequilibrium. In this connection, the
conference recommends that the central banks
make free use of the discount rate as an efficacious means of controlling the money market,
thus influencing favorably the true causes affecting the internal value of the currency and
consequently its international value.
The study of past experiences with exchange
control strengthens the views of the conference
in this matter. The manifest impossibility of
an effective control of all foreign drafts brings
in its train the development of an outside exchange market, supported by those who try to
evade the regulations governing both sales and
purchases of exchange. The privileged situation in which the unscrupulous place themselves
JANUARY, 1932
to the disadvantage of those who obey the law,
and the arbitrary nature of any attempt aimed
at rationing the supply of foreign exchange
when it is insufficient, are facts which tend to
weaken the position of the most carefully
erected exchange control organization. In
formulating these views, the conference wishes
it clearly established that it is not passing any
judgment whatever on such control measures
as may be in force at present in various countries, and which without doubt, owe their
origin to the temporarily severe character of the
crisis which it is attempted to correct and to
the influence of special circumstances.
AMPLIFICATION FORMULATED BY THE COLOMBIAN DELEGATION FOR SUBJECT NO. 1C
Regarding exchange control.—In the crisis
which is disturbing the national economy of all
countries at the present time, the lack of equilibrium in the balance of international payments
stands as one of the principal causes. In
Colombia, in order to reestablish equilibrium,
emergency measures have been taken which
may reduce imports and tend to increase exports, thus defending gold reserves, upholding
the prestige of the Bank of the Republic, and
maintaining monetary stability in so far as
possible. One of these emergency measures has
been the establishment of exchange control,
employed in some countries together with other
measures of a similar nature. Control of gold
exports was used in Colombia with very good
success in 1920 and now it is being used in a
more extensive way for the purpose, among
others, of reducing imports and expenditures of
Colombians abroad, and in order to retain gold
within the country to the greatest extent possible during the period in which equilibrium in
the balance of payment is being reestablished.
Up to now results have been satisfactory but a
recommendation in general terms endorsing
the application of exchange control could not
be made without studying the particular conditions in each country, as well as the objects
in view, which might justify it.
II
TO CONSIDER HOW THE LEGAL RESERVE AND
THE GOLD RESERVES OF THE CENTRAL BANKS
CAN BE CONSTITUTED, AS WELL AS THE MONEY
MARKETS IN WHICH THEY CAN BE PLACED
The legal reserve of the central banks could
well include, in addition to the types of reserve
now mentioned in their organic laws, accredited
bankers' acceptances with not over ninety
days to run, which are easily negotiable in
markets of gold standard countries, this class
of reserve not to exceed 40 per cent of the total
normal reserve of the bank.
As to the financial centers in which the gold
reserves of the central banks must be placed,
preference should be given to those centers
whose monetary systems are on the gold
standard and which offer effective assurance
of payment at any time, in gold, of the deposits
which may be placed there.
Ill
TO CONSIDER THE POSITION OF CENTRAL BANKS
WHICH HAD RESERVES DEPOSITED IN LONDON
IN POUNDS STERLING, AND THE SAFEGUARDS
WHICH IT IS ADVISABLE TO ADOPT FOR THE
FUTURE
Since the maintenance of parity between
the circulating medium and the gold unit of
value is the chief function of a central bank's
gold reserves in a gold standard country, and
since this function is performed principally by
adjusting the supply of the circulating medium
to the variable demands of trade, and through
the interconvertibility of the bank's notes and
deposits with gold within the country or with
gold exchange in foreign financial centers, a
central bank's legal reserves should at all times
consist of gold coin, gold bars, or foreign credits
convertible into gold on demand practically at
gold parities. Demand obligations of central
banks which are payable in gold or its equivalent should be supported by assets quickly realizable in gold without appreciable discount.
To the end that central banks may maintain
this position, the conference would recommend
that any central bank holding a part of its legal
reserves in the form of deposits or other credits
in any country that suspends the gold standard,
should at the earliest possible time after said
suspension, convert these reserves into gold or
its equivalent, taking the loss which may ensue
and reestablishing its reserves completely on a
gold basis.
For the purpose of giving greater security to
deposits which the central banks may place
abroad to utilize as support for their currencies, the conference would recommend that
steps be taken to obtain from the countries
where it is permitted the banks to make these
deposits assurance that they will be returned
at any time, without any restriction, and at
the same gold parity in which they were made.
45
FEDERAL RESERVE BULLETIN
JANUARY, 1932
IV
STUDY OF THE REFORMS WHICH MIGHT BE
ADVISABLE IN THE ORGANIC LAWS OF THE
CENTRAL BANKS WITH RESPECT TO LOANS
AND REDISCOUNTS
The credit function is so intimately linked
with the regulation of the circulating medium
and, therefore, with monetary stability that it
must not be exercised without keeping in mind
the disastrous consequences which may result
if the central banks do not keep their policy in
line with basic principles.
Severe criticism of the policy of the central
banks is frequently heard, holding the latter
responsible for aggravating the depression in
their respective countries through severe restriction of credit, and hence the public clamor
is for amplifying credit in accordance with
demands, it being alleged that to augment the
note circulation would relieve the economic
situation.
The conference is of the opinion that the
policy thus far followed by the central banks
has been in conformity with the clear precepts
of their organic laws and of the careful rules
which govern banks of issue wherever they are
established. There are no grounds for the
criticism referred to above. It is necessary,
therefere, to state emphatically once more that
the central banks were not created as a substitute for commercial banks and can not be
regarded as a source of panaceas for economic
ills which are subject to a slow and painful
process of recovery. Central banks complement and assist the commercial banks which
furnish credit to productive and commercial
enterprises for current needs. Central banks
must not in any way supply capital on a permanent basis either to member banks or to the
public, which may lack it for the conduct of
their business. However, in view of what has
been observed, the conference feels that the
legal dispositions which govern the central
banks at the present time should be broadened
slightly, as follows:
1. By extending the maximum period for current
operations to 120 days.
2. By increasing the credit limits fixed for commercial banks and for the public, stipulated in the organic
laws of certain countries, by not taking into account in
such limits obligations secured by agricultural and
livestock products and raw materials, which have as
sufficient guaranty the goods themselves and the signature of the debtor. However, the total amount of
these operations should be limited in accordance with
the capital and surplus of each central bank as stipulated by their respective organic laws.
46
FEDERAL RESERVE BULLETIN
3. By granting to member banks, in especially urgent
cases, the privilege of rediscounting promissory notes
and other documents secured by shares, bonds, or
mortgage bonds which are easily negotiable, even when
quoted below par, but only for an amount over and
above the normal limitsfixedby law, of not over 20 per
cent of the capital and surplus of each member bank, it
being understood that the total of this class of investments shall not exceed 20 per cent of the capital and
surplus of the central bank. In all cases it should be
stipulated that this aid will only be given after an inspection of the member bank soliciting assistance has
been effected, which inspection reveals that the bank
in question is solvent, and at the same time reveals the
patent necessity for this form of credit.
4. If it should be necessary, in any country, to amplify credit operations, the conference would recommend that the system of bankers' acceptances be established, regulated by terms and conditions similar to
those of the Federal Reserve System. At the same time,
it is deemed advisable that the central banks look to
the creation of a market for bankers' acceptances in
their respective countries.
5. By establishing more favorable interest rates for
the discount or rediscount of trade and bankers' acceptances, for the purpose of encouraging the wider use
of these types of instruments in. preference to promissory notes.
6. In cases where the central banks, by reason of
their constitution, have to incorporate in their assets
long-term investments of slow realization, it is advisable
to separate the total of such accounts from their other
assets and place it with any other organization or bank,
the purpose and functions "of which are compatible with
such investments.
7. Considering that the investments of a central bank
must be maintained at all times wholly in a state of
liquidity and that, therefore, the provision of permanent capital or long-term credits is entirely opposed to
its purposes, the conference would recommend that new
credits should not be extended to those commercial
banks which, during an agreed-upon period of time, have
continuously made use of the rediscount privilege at
the central bank. For this purpose a minimum period
should be established for determining whether the use
of the (central banks') facilities has been continuous or
not. Operations with the public should be handled
similarly by those central banks which are accustomed
to effect them.
However, in cases of urgent necessity it is recommended that requests for credit on the part of a member
bank which has not been out of debt during the previous
calendar year be attended to in any event after the
soliciting bank has agreed to submit to an inspection
by the central bank, for the purpose of establishing
beforehand its solvency and liquidity, the examination
to show that the member bank's operations are conducted with its own resources and to establish the
urgent need for assistance.
V
TO STUDY THE ADVISABILITY OF CREATING
SOURCES OF INTERNATIONAL CREDIT FOR
CENTRAL BANKS
Considering that only in special circumstances is it appropriate for central banks to
JANUARY, 1932
make use of credits, and keeping in mind also
that recent experiences have indicated that
even in circumstances considered up to now as
appropriate, such credits can not always
achieve the purpose for which they are obtained, the conference deems that it would not
be prudent on the part of the central banks to
attempt to obtain credits unless sought with
the assurance that they are to be employed in
liquidable short-term operations and that they
can be repaid in the currency of the lending
country.
However, it is recognized that there are times
of emergency in which, due to a sudden and
temporary reduction in its reserves, a central
bank may find it necessary and desirable to
obtain credits abroad. These credits ordinarily could be obtained in the usual manner
in the money market, but in some cases it is
believed that the purpose of reestablishing
confidence can be fulfilled better by means of a
credit obtained through a foreign central bank.
The conference is of the opinion, therefore, that
the possibility of entering into negotiations for
obtaining such credits deserves the attention
of the central banks of these and other countries, and of the Bank for International Settlements, for the purpose of furthering the cause
of central bank cooperation and international
monetary stability, which institutions of this
class should foster.
(VI omitted by vote of conference.)
VII
TO CONSIDER THE DESIRABILITY OF MAINTAINING AT ALL TIMES BUDGETARY EQUILIBRIUM
IN ORDER THAT THE GOVERNMENT MAY NOT
FIND IT NECESSARY TO SEEK CREDITS THROUGH
RECOURSE TO THE CENTRAL BANKS, A DEVELOPMENT WHICH USUALLY RESULTS IN
INFLATION OF THE CIRCULATING MEDIUM
The quantity of the circulating medium
being the fundamental factor in the value of a
currency and keeping in mind that lack of equilibrium between fiscal receipts and expenditures produces deficits which could occasion
demands for credit of various kinds at the
central bank, resulting in inflation of the circulating medium, the conference considers it
its duty to recommend once more to the
authorities of Government the necessity for
maintaining at all times this equilibrium without which it is impossible to follow a sound
financial and monetary policy.
FEDERAL RESERVE BULLETIN
JANUARY, 1932
VIII AND IX
TO CONSIDER THE PROBLEM OF EXTERNAL
DEBTS FROM THE POINT OF VIEW OF THE
STABILITY OF INTERNATIONAL EXCHANGES
Service on external debts is not only an
expense affecting public finance but is also
an obligation which affects international
exchanges.
The situation brought about by the diminution of fiscal receipts as a consequence of the
present crisis and, on the other hand, the lack
of equilibrium in the balance of international
payments produced by the decline in the value
of exports explains in large part the difficulty
of meeting the service on the external public
debt, in so far as those countries are concerned
which can not pay these services without compromising the stability of their exchanges.
The conference confines itself to placing
these facts on record, at the same time expressing the hope that the reestablishment of
normal conditions will permit the realization of
new and satisfactory settlements.
X AND XI
47
tions, without legal hindrances which disturb
the development of credit and banking functions.
2. Obviously there must always be for the
common good perfect harmony between the
fiscal policy and banking policy. There should
be clearly established within this concept the
necessity for absolute independence of the central banks from any intervention by partisan
politics and from any influence on the part of
the government or of its officials beyond the
scope of their usual powers.
3. As the functions of control and inspection
with which the laws endow the superintendents
of banks are delicate in the extreme, given the
fact that in these laws lies the confidence of the
public with respect to the solvency of the credit
institutions, the legality and quality of their
investments, the amount and type of their
reserves, the management of their business,
the origin of their directors, etc., the conference
would recommend particularly that for the
efficient discharge of these functions, those
intrusted with their performance should, in
all cases, insist on the strict application of the
law, free of any outside influence whatever
which might cause them to swerve from their
proper mission.
X. TO CONSIDER THE NEED FOR RECOMMENDING
TO THE GOVERNMENTAL AUTHORITIES THAT,
XII
BY MEANS OF SUITABLE LEGISLATION, GUARCREATION
OF
INTERNATIONAL
SOURCES OF
ANTIES MAY BE GIVEN TO THE BANKING
CREDIT SPECIFICALLY FOR PRODUCTIVE PURCOMMUNITY, SO AS TO PREVENT LOWERING
POSES
THE PRESTIGE OF THE CREDIT FUNCTION;
AND IN PARTICULAR, THAT EFFECTIVE GUARThe conference recognizes the need of these
ANTIES BE PROVIDED FOR THE EXCLUSION countries for foreign credits for productive purOF ANY POLITICAL INTERFERENCE WITH poses, with maturities which fall between those
CENTRAL BANK POLICY
of short-term credits, granted by commercial
XI. TO CONSIDER THE MOST EFFICIENT MANNER
OF PROVIDING GUARANTIES TO PRIVATE
CAPITAL IN ORDER TO PREVENT ITS LEAVING
THE COUNTRY
1. Capital and credit, being fundamental
factors in the economic life of nations, should
always be fully and amply guaranteed by governments in order to encourage the fullest
development of economic activity. The conference deems it advisable, therefore, that capital should not be ^weighed down with taxes and
that at all times it should be guarded by vigilant and energetic legislation which assures an
attitude of respect on the part of the governments toward their contractual obligations
and the punctual fulfillment on the part of
corporations and individuals of their obliga-
banks, and those credits with longer maturities,
provided by world capital markets.
The conference deems also that the granting
of such intermediate credits for productive purposes, especially for the financing of exportable
products, should constitute a useful and constructive part of any plan for aiding these
debtor countries in fulfillment of their international financial obligations.
Therefore, the conference would recommend
to the central banks that they cooperate in the
study of new mechanisms for providing intermediate credits, for productive purposes, with
maturities of from one to three years; and in
stimulating the centralization and mobilization
of the demand for such credits in the borrowing
countries and the mobilization of the supply
of such credit in the lending countries.
48
FEDERAL RESERVE BULLETIN
XIII
TO STUDY THE POLICY WHICH THE CENTRAL
BANKS SHOULD ADOPT WITH RESPECT TO THEIR
DIVIDENDS IN TIMES OF CRISIS OR IN OTHER
PERIODS IN WHICH PROFITS ARE MUCH REDUCED OR NONEXISTENT
In view of the prime importance to a central
bank of constantly maintaining itself in a
strong position, in order to carry out effectively
its functions and maintain the full confidence
of the public, given that it is the source of the
circulating medium and that it is the depository
of the gold reserves of the country, the conference deems it advisable that a central bank
should always observe a very cautious dividend
policy. Thus the central bank must not pay
dividends except when its profits permit it to
do so, after all losses, administrative expenses,
and necessary transfers to reserves have been
made. A central bank should not impair its
capital or the necessary reserve accumulations
in order to meet the payment of ordinary dividends or of contingent accumulated dividends,
the payment of which may have been deferred.
Every central bank should always be administered first for the public interest, with the payment of dividends a secondary consideration.
However, the conference recognises that it
is desirable for central banks to maintain, in
so far as possible, a uniform dividend rate.
To this end, it would be recommended that
they adopt the policy of segregating a prudent
sum from profits in order to create a special
reserve which shall be left to accumulate for
use over short periods of time (say a year or
less) in order to maintain dividends during
times when profits are temporarily very low,
thus justifying the payment of the usual dividend at such times.
XIV
PERFECTING THE GOLD STANDARD
Inasmuch as one of the greatest economic
problems before the world to-day is the problem of obtaining a monetary medium that is
reasonably stable in value, and inasmuch as the
best prospect for obtaining such a monetary
medium appears at the present time to be in
the world-wide adoption of the gold standard—
which is still considered as the most practicable
despite its recognized deficiencies—this conference looks with favor on all reasonable
efforts on the part of the central banks of the
world and of the Bank for International
Settlements to cooperate in the work of perfecting the gold standard and of making it a
more stable standard or measure of value.
JANUARY, 1932
RESOLUTION ADOPTED BY THE CONFERENCE ON
MOTION OF THE PERUVIAN DELEGATION
Interpreting and amplifying the original idea
contained in the note in which the Central
Bank of Bolivia proposed holding this conference, the Peruvian delegation has the honor
to submit for consideration the motion that
relations of a permanent character be initiated
and established among all the central banking
institutions of issue and rediscount in America,
and to this end suggests:
1. That a communication containing an
account of the work and conclusions of this
conference be sent to all the central banking
institutions of issue and rediscount in America;
2. That by means of correspondence regarding matters of common interest, as well as by
means of the exchange of publications, such as
laws, decrees, etc., permanent and cordial relations among all the central banking institutions of issue and rediscount in America, be
intensified;
3. That the other central banking institutions of issue and rediscount in America be
invited, in the name of the central banks here
represented, to another conference, which,
without now fixing the date, will be held
sometime during 1933, subject to the approval
of the institutions which are to be invited;
the place where the conference shall be held to
be decided by agreement of all institutions invited, and the secretaryship and the preparations for the conference to be left in charge
of the central bank of the country where the
present conference was held;
4. That a communication containing the results of the work and the conclusions of this
conference be sent to the Bank for International
Settlements in Basel, Switzerland, for the purpose of bringing about a more intense and wider
collaboration among all central banking institutions of issue and rediscount.
RESOLUTION ADOPTED BY THE CONFERENCE ON
MOTION OF THE ECUADOREAN DELEGATION
AND THE CHILEAN DELEGATION
The delegations which, due to the initiative
of the Central Bank of Bolivia, have gathered
together in Lima at the conference of South
American central banks, are in duty bound to
express their profound appreciation to the
Central Reserve Bank of Peru for the courtesy
and hospitality extended to the delegations,
for the many facilities placed at their disposal,
and for its intelligent and enthusiastic cooperation in the completion of a comprehensive and
cooperative labor by the South American central banking institutions.
FEDERAL RESERVE BULLETIN
JANUARY, 1932
49
BANCO CENTRAL DE CHILE
The conference deems it its duty, as well, to
extend a vote of thanks to Professor Kem- Mr. GUILLERMO SUBERCASEATJX PEREZ, director of
Banco Central de Chile.
merer and to the other delegates of the Federal
GUILLERMO SUBERCASEAUX RIVAS delegate, id.
Reserve Bank of New York for their aid in the Mr.
Mr. MIGUEL COVARRUBIAS, delegate, id.
work carried out by this conference, recom- Mr. WALTER VAN DEUSEN, technical adviser to the
mending to them at the same time that, because
delegation.
of the international scope of the conference's
BANCO CENTRAL DEL ECUADOR
findings, they make public its decisions and the
spirit which dictated them.
Mr. ENRIQUE CUEVA, president of Banco Central del
Ecuador.
List of Delegates at the Conference of Representatives Mr. ESTEBAN CARBO, manager of Guayaquil Branch.
of Central Banks in Lima, December 2, 1932.
BANCO CENTRAL DE BOLIVIA
Mr. ISMAEL MONTES, ex-President of Republic and
now President of the Banco Central de Bolivia.
Mr. CARLOS VICTOR ARAMAYO, director of Banco Cen-
tral de Bolivia.
Mr. ALBERTO PALACIOS, general manager, id.
Mr. CARLOS GUACHALLA, manager foreign department, id.
BANCO CENTRAL DE RESERVA DEL PERU
Dr. MANUEL AUGUSTO OLACHEA, president of Banco
Central de Reserva del Peru.
Mr. PEDRO G. BELTRXN, vice president, id.
Dr. Luis ALAYZA y PAZ SOLDXN, director!
Mr. MANUEL IRIGOYEN, director,
Mr. CARLOS E. B. LEDGARD, director.
Mr. AUGUSTO N. WIESE, director.
Representatives of Federal Reserve Bank of New York
BANCO DE LA REPUBLICA, COLOMBIA
Attending the Conference
Mr. POMPONIO GUZMAN, former Minister of Finance
Prof. E. W. KEMMERER, of Princeton University.
and of Public Relations.
Mr. V. A. DENYER, manager of Barranquilla Branch of Mr. ALLAN SPROUL, assistant deputy governor.
Mr. ERIC F. LAMB, adviser in Latin American affairs.
Bank of the Republic.
ANNUAL REPORT OF THE BANK OF JAVA
The annual report of the president of the the same until 1929 as a result of an increase
Java Bank for the year ended March 31, 1931, in the quantities exported, while up to and
was presented to the general meeting of share- including 1929 there was even a considerable
holders on July 9, 1931.
Sections of the report increase in the aggregate value of imports.
This increase was due, on the one hand, to
are given herewith.1
Developments in the Netherland East Indies temporary factors, such as large capital induring the first few months after the outbreak vestments both in European agriculture in Java
of the crisis in October, 1929, have already been and also in the petroleum industry, and, on the
dealt with in the previous report. The influence other hand, to factors of a more permanent naof the steady price decline resulting from the ture, such as the increase of native agricultural
crisis became clearly evident in the closing production. It is partly owing to these factors
months of 1929. Since that time the fall in the that the weakening of the position of the
of export commodities has continued, the Netherland East Indies in international com[)rices
owest level up to the present having been modity exchange had not in earlier years
reached in October, 1930. Prices of imported exercised a check on imports. It must also be
commodities also underwent a decline, but not remembered that costs of production per unit of
to the same extent as export prices. For thethe European plantations have for a number
Netherland East Indies, a country that exports of years been considerably reduced. Although
agricultural products, the unequal decline in ex- these reductions were not sufficient to compenport and import prices has a special significance. sate for the decline in prices of agricultural
Foreign trade.—Since 1925 the position of products (in 1930 a number of plantations
the Netherland East Indies in respect to the operated at a loss) they were sufficient to justify
international exchange of commodities has a less pessimistic attitude toward the price
been growing less favorable. As shown in decline than might otherwise have been the
the previous report, the aggregate value of case. I t is true, however, that since 1929 the
exports from the Netherland East Indies, in earnings of the people have declined considerspite of the declines in prices, remained about ably without a corresponding decline in the cost
i Taken with some textual revision from the English translation pub- of living, and this has caused a considerable
lished by the bank. In addition the report contains tables showing the
operations of the bank in detail, and sections dealing with the inter- contraction in the country's purchasing power,
national situation, agriculture, personnel, etc. For the report for 1929-30 especially for imported commodities.
see FEDERAL RESERVE BULLETIN for December. 1930.
50
FEDEEAL RESERVE BULLETIN
The decline in imports which took place
during 1930 was accompanied by changes in
the relative importance of various countries
as sources of imports into the Netherland
East Indies. Europe still holds a predominant
position, especially when account is taken of
the great volume of merchandise imported
from the Straits. For the past five years
Europe has been responsible for about onehalf the imports into the Netherland East
Indies, although the aggregate value of imports
from Europe declined from 484,830,000 florins
($194,902,000) in 1929 to 363,630,000 florins
($146,179,000) in 1930, a decline of about 25
per cent. During the same period imports
from North America declined from 92,600,000
florins ($37,225,000) to 12,500,000 florins
($5,025,000), a decrease of about 86.5 per cent.
As imports from Europe and America belong
chiefly to the class of luxuries or of capital
goods, they were most adversely affected by
the economic recession. Imports from Asia,
on the other hand, were higher by 19,000,000
florins ($7,638,000) in 1930 than in 1929.
This increase is represented chiefly by yarns
and piece goods, earthenware, kedeleh, and tea.
The aggregate value of exports from the
Netherland East Indies during 1930 declined
considerably more than that of imports,
although the merchandise balance continued to
be favorable. The value of sugar exports declined from 306,930,000 florins ($123,386,000)
in 1929 to 243,900,000 florins ($98,048,000) in
1930; that of rubber from 231,330,000 florins
($92,995,000) to 170,860,000 florins ($68,686,000); whereas that of petroleum products
rose from 175,400,000 florins ($70,511,000) to
181,550,000 florins ($72,983,000). Of 14 commodities, representing about 87 per cent of the
total exports, only 5 (including petroleum)
showed increased exports in 1930 as compared
with 1929.
Exchange position of the florin.—The recession in exports of merchandise during the past
year did not affect the position of the Netherland East Indies florin. Rates of exchange remained very steady, since the economic situation as well as the volume of imports became
adjusted to the changed conditions, so that the
merchandise balance was only slightly less favorable than that of the previous year. Neither
in the case of exports nor of imports was there
any artificial impediment to adjustment set up
by accumulation of stocks in the hope of better
prices. As a result of this economic adjustment,
which proceeded without the application of any
artificial measures, the contraction of the circulating medium and its adjustment to the re-
JANUARY, 1932
quirements of a diminished volume of business
and lower prices could take place without hindrance. The Java Bank's selling rate for telegraphic transfers to Holland stood unchanged at
100% throughout the year. Rates for telegraphic transfers to London fluctuated between
12.06% and 12.15 florins for the pound sterling,
and to New York between 2.48% and 2.50
florins per dollar.
State finances.—The past five years show a
change in State finances from a budget surplus
to a budget deficit.
[In thousands of florins and dollars]
Revenues
1926._
1927._
1928._
1929._
1930__
Expenditures
Balance
Fl. 537,996($216,274) Fl. 437,860(1176,020) +F1.100,136($40,255)
517,976($208,226)
472,726($190,036) +
45,250($18,191)
526,730($211,745)
497,213 ($199,880) +
29,517($11,866)
524,386($210,803)
514,993($207,027) +
9,393 ($3,776)
523,995($210,646) 438,706($176,360)
85,289($34,286)
Even if economic conditions during the
coming years should show a gradual improvement, a reduction of budgetary expenditure
will still be necessary. Increases in various
items, such as pensions and the service of
indebtedness incurred to cover budget deficits,
will inevitably require a contraction of State
activity if the budget is to be balanced. The
ultimate aim of financial policy in this country
should be to bring about budget equilibrium
through reduction of expenditure rather than
through increased taxation. Borrowing from
abroad to meet current requirements should
be resorted to only as a last expedient.
Reserves and demand liabilities.—On
March 31, 1931, the gold stock of the Java
Bank was made up as follows:
Dutch gold coins
Foreign gold coins
Gold bullion
Total
Fl. 52, 328, 320
51, 674, 892
14,693,940
118, 697, 152
($21, 035, 985)
($20, 773, 307)
($5,906,964)
($47, 716, 255)
while silver amounted to 47,273,137 florins
($19,003,801), making a total reserve of
165,970,289 florins ($66,720,056). Demand
liabilities on the same date consisted of the
following:
Bank notes in circulation
FL 251, 475, 675 ($101, 093, 221)
Current account balances
33,636,582 ($13,521,906)
Bank drafts in circulation
1,469,790
($590,856)
Total
286, 582, 047 ($115, 205, 983)
The ratio of reserves to demand liabilities,
accordingly, was 57.91 per cent, as compared
with 53.88 per cent on the corresponding date
in 1930 and 53.12 per cent in 1929.
51
FEDERAL RESERVE BULLETIN
JANUARY, 1932
Gold movements.—Imports of gold coin for
private account during 1930 amounted to only
2,445,000 florins ($982,900), as compared with
10,410,000 florins ($4,184,800) in 1929 and
20,463,000 florins ($8,226,100) in 1926. Exports of gold coin returned by the population
during 1930 were inconsiderable, but large
quantities of gold coin and ornaments had to
be bought in by the Government Pawnshop
Service, as the pledges were not redeemed. In
December, 1929, the value of pledges—chiefly
in the form of gold coin and ornaments—pur-
chased by the Government Pawnshop Service
amounted to 1,636,000 florins ($657,700), while
by the close of 1930 it had risen to 8,181,000
florins ($3,288,800). For some time the Government Pawnshop Service has been melting
this gold and selling it abroad in the form of
bars.
The bill amending the Java Bank act of
1922, mentioned in the previous report, was
passed last year by both houses of Parliament,
and was promulgated by the Official Gazette
of the Netherland East Indies, 1931, No. 2.
BALANCE SHEET OF THE BANK OF JAVA AS OF MARCH 31, 1931
Resources
Cash in hand:
Gold coin
Silver coin
Subsidiary coin.
Foreign coin and bullion:
Gold coin..Gold bullion
Silver coin
__.
Silver bullion
Foreign bills
Stock exchange loans in Holland.
Bills discounted:
Commercial bills
Government auction bills
Loans and advances in current account, against:
Stocks and bills of exchange..
Merchandise
Hypothecated claims
Gold and silver
Florins
(in thousands)
Dollars i
(in thousands)
52,328
47,203
21,036
18,976
140
99,881
40,152
51,675
14,694
20,773
5,907
70
28
66,439
29,849
500
26,708
11,999
201
8,248
892
3,316
359
9,140 I
3,674
30,017
4,217
684
28
Florins Dollars i
(in thou- (in thousands)
sands)
Liabilities
Notes in circulation
Deposits
Drafts payable.
Unclaimed dividends
Capital paid up
Reserve fund
Extra reserve
Reserve for company tax
Pension and provident fund
_
Net profits:
Shareholders
Government.
Bonuses
Unpaid balance of profits due to shareholders for
the year 1929-30
Sundry accounts
101,093
251,476 i
13,510
33,606 !
591
1,470 !
12
30 i
3,618
9,000 j
5,427
13,500 !
1,090
2,711;
115
fr» 286 !
1,777
4,420 i
1,260
1,441
281
507
579
113
2,982
1,199
1
121
49
319, 603
128,480
12,067
1,695
275
11
Advances to the Government
Investments:
Invested capital.—
Invested reserve funds
Invested pension and provident fund.
Buildings
Furniture
Sundry accounts..
Total resources..
i Conversion at par: 1 florin=$0,402.
Total liabilities.
52
FEDERAL RESERVE BULLETIN
JANUARY, 1932
FINANCIAL STATISTICS FOR FOREIGN COUNTRIES
GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS
[In millions of dollars. Figures for last report date of month *]
Europe
Month
1930—July
August
SeptemberOctober
November
December
1931—January
February
March
April
May
June
July
August
September
October
November
December
United
States
Total (45
countries)
Canada
10,705
10,787
10,823
10,852
10, 894
10, 907
4,160
4,148
4,159
4,184
4,220
4,225
10,953
11,008
11,071
11,107
11,217
11, 264
11,210
11, 283
» 11,260
»11,100
» 11, 207 i
1
4,285
4,309
4,343
4,373
4,445
4,593
4,587
4,632
4, 364
3,905
4,031
v 4,051
Total (26
countries) i
94
100
110
122
129
110
92
94
96
99
102
87
87
89
83
86
82
*>78
A
A uu ss ttrni aa
Belgium
5,009 1
5,122 ,
5,141 i
5,207 ;
5,238 '
5,281 ,
24
24
30
30
30
30
167
168
173
180
180
191
5,313 '
5, 350
5,388 :
5,395
5,428 i
5,351 i
5,353 !
5,413 !
J-5,686 i
J> 6,060 '
p 6,106 !
30
30
30
30
30
30
30
30
27
27
27
191
197
200
201
201
199
214
221
346
357
356
354
Czecho- Denmark England
Bulgaria slovakia
10
10
10
10
10
10
10
11
11
11
11
11
11
11
11
11
11
Germany
France
42
42
42
44
46
46
46
46
46
46
46
46
741
754
761
776
762
718
1,775
1,852
1,899
1,992
2,037
2,100
624
624
590
519
519
528
46
46
46
46
46
46
45
45
45
46
46
46
46
46
46
46
46
46
46
44
44
39
39
679
685
699
712
735
793
643
649
656
660
587
588
2,176
2,192
2,200
2,180
2,181
2,212
2,290
2,296
2,326
2,534
2,659
* 2,699
535
544
553
564
569
339
325
325
310
273
239
*234
Europe—Continued
Month
Greece Hungary
Italy
Nether- Norwayj Poland
lands
Rumania
Spain
Sweden Switzerland
u. s. s.
R.
Yugoslavia
6 other
countries »
1930-July
August
September.
October
November..
December..
28
28
28
28
28
28
274
275
278
278
279
279
157
157
157
171
171
171
39
39
39
39
39
39
477
477
478
478
474
471
65
65
65
65
65
65
118
123
123
128
130
138
234
249
249
249
249
249
19
19
19
19
19
19
27
27
27
27
27
1931—January
February. _
March
April
May
June
July
August
September.
October
November.
December..
28
26
22
20
20
20
20
18
18
18
18
18
279
279
279
279
280
282
283
283
286
293
296
175
179
179
181
181
200
236
260
282
336
362
357
39
39
39
39
39
39
39
466
466
467
467
468
468
439
439
439
434
434
434
64
64
64
64
64
64
64
62
53
57
55
126
124
124
124
124
162
225
229
328
422
425
453
249
249
259
259
262
262
267
280
293
309
315
328
19
19
19
19
19
27
27
27
29
31
31
31
28
28
28
29
29
29
28
28
»28
Far East
Latin America
Month
1930—July
August
September.
October
NovemberDecember..
1931—January
February—.
March
April
May
June
July
August
SeptemberOctober
November.
1
Total
(10
countries)
Argentina
634
616
613
575
550
534
436
434
434
429
417
412
506
497
483
475
465
451
416
400
369
360
397
390
378
370
362
350
322
309
281
270
Brazil Colombia
Peru
Uruguay
63
60
5 other
countries i
Total
(5
countries)
Austra- India
lia
Africa
Japan
18
17
17
17
17
17
755
748
747
711
701
704
128
128
128
128
128
128
440
433
431
414
409
412
17
17
16
16
17
17
12
12
13
12
p 12
704
703
709
714
724
730
714
698
706
644
*572
128
128
135
141
147
151
158
162
162
162
162
415
417
415
419
422
425
412
406
408
342
271
Java
All figures are as of final day of month except those of 15 countries, for which last report days are shown on page 399 of the FEDERAL RESERVE
BULLETIN for July, 1931.
3
Countries which, for the period shown in the table, have not had gold reserves in excess of $10,CC0,CC0. For Europe these countries are: Albania,
Estonia, Finland, Latvia, Lithuania, and Portugal. For Latin America they are Bolivia, Chile, Ecuador, Guatemala, and Mexico.
» Preliminary.
NOTE.—For institutions represented, items included, and rates of conversion into dollars, see note to similar table on p. 399 of the FEDERAL
RESERVE BULLETIN for July, 1931. The July BULLETIN also contains separate figures for the 45 countries by months for the period June, 1928-May
1931 (pp. 399-400); and by years for the period 1913-1930 (p. 394).
53
FEDERAL EESEKVE BULLETIN
JANUABT, 1932
GOLD MOVEMENTS
[In thousands of dollars]
United States
Germany
Great Britain
Netherlands
South
Africa
India
Net
Net
Month
Exports
Net
Imports
Exports
Net
Imports
Ex- !
ports I
Imports
Net
Exports
Net
L
I
1930—July
| 21,889 41,529
August
I 19,714 39,332
September
13,680 11,133
October..
35,635 9,266
November
40,159
5,008
December
32,778
36
1931—January
34,426
54
February
16,156
14
March
25,671
26
April
— . j 49,543
27
May
-._ 50,258
628
June.
. . . . I 63,887
40
July
_ '20,512
1,009
August
57,539
39
September
' 49,269 28, 708
October..
60,919 398, 604
November
94,430
4,994
r
-19,640
-19,617
2,547
26,369
35,151
32,742
34,372
16,142
25, 645J
49, 516!
49, 630
63,847
' 19, 503
57, 500
' 20, 5611
-337, 685 i
89, 436i
1,414
1,545
1,967
3,162
1,458
9,524
12, 252
12,335
11,077
11, 728
6,665
11, 203
10,279
1,487
1,344
7,073
697
Revised.
227
1,187 24,646 40,355! -15,709
210
1,335 24,201 21.390
2,811
25,358 - 2 3 , 3 9 1 22,339 20,245
2,094
96,677 - 9 3 , 514 45,416 34, 754
10,662
273
1,185 41,199 43,164 - 1 , 9 6 5
274
9,250 43,124 78. 507 -35,383
287 11, 965 35,304 78, 774 -43,470
237 12,098 31,335 28,892
2,443
479 10,598 22,829 16,377
6,452
345 11,383 28,495 4,411
24,084
294
6,371 20,742
1,620
19,122
216,745 -205, 542 66,956 12, 656 54,300
16, 522 - 6 , 243 48,444 179, 252 -130,808
554
933 39, 862 64,012 —24,150
18,291 -16,947 23, 327 34, 214 -10,887
38,546 -31,473] 41,9701 25,654
16, 316
42,665 -41,968| 58, 529! 117,
-58,840
l
» Preliminary.
MOVEMENTS TO AND FROM GREAT BRITAIN
[In thousands of dollars]
1931
From or to—
November
January-November
EgVDt
954
Rhodesia
Transvaal
18,810
West Africa
417
All other countries.. 2,900
Total
Calendar year
36,824
5
2,965 315, 542
1,470
49,121 14, 874
7
3,879 126,001
19
4,867
1,021 29,229
46,157
1,864
8,593
283
29,512
68 57 944
1
47,533
1,652
33, 068
116, 417
1,304
127
5
424
5,197
5,483
214,389
203, 513
7
5,059
5,075
760 18, 746 12,070
2,436
58, 529 117, 369 417, 792 563, 231 421,725
•Corrected.
1930
86
80,363
54
17,475
1
13,086
5,539
-22, 415
3,404
-18,708
13,461
-17,149
3,568
-20,259
967
-18,762
1,323
-16,966
681
-21,005
-286
-18, 482
880
-17, 557
•943
-16,895
•600
-21,391
696
-16,915
-1,752
-22, 729
-803
-17,852
—270
-18,760
62
-16,625 -31,250
-15,479 '—30,834
16,587 -16,539
8
273
68
13
199 12,139
115
35
39
3
52
249
167
-109
215
—155
-433
458
-519
551
563 24, 376
9,397
946
1,055 60, 076
19, 020
1,059
22,118 30, 598
36,551
V
MOVEMENTS TO AND FROM BRITISH INDIii
[In thousands of dollars]
1931
From or to—
Imports Exports Imports Exports | Imports Exports
Belgium
23
France
-_
Germany
52
Netherlands
1,293
Spain and Canaries.
Switzerland
United States
118
905
South America
British India _
31,306
Australia
1,448
New Zealand
301
48
281
81
12,338
150
42
301
59
59
25
32
24,939
10,343
61,131
20, 079
52,716
41,219
Belgium
England
France
Netherlands
United States
Aden and dependencies
49 Arabia
8,178 British Oceania
2 Bahrein Islands
Ceylon
94 China
Mesopotamia
Straits Settlements..
11 Egypt
5,669 Natal
All other countries...
398,040
Total
9,095
270,301
78,842
1,000
1,610
23,190
1930
January-October
October
Calendar year
Imports Exports Imports Exports Imports Exports
201
62
12,409
1,509
9,084
9,922
56
104
28
102
295
2
335
67
6
575
25
56
1,798
33,048
6
1,799
412
843
2,199
433
543
73
1, 606
136
G
1,438
25
62
19, 213
1,509
9,129
10, 715
8,848
56
650
759
8,053
196
2,718
3 670
2,402
2,828
1,177
26,513
39
9, 513^ 40, 692
57,854
•t
6
167
14
182
54
FEDERAL RESERVE BULLETIN
JANUARY, 1932
FOREIGN EXCHANGE RATES, YEARLY AVERAGES 1923-1931
[In cents per unit of foreign currency. For explanation see note on p. 57]
Present monetary
unit 1
Country
Europe:
Austria
Belgium
Bulgaria
Czechoslovakia
Denmark
England
Finland
France
Germany
Greece
Hungary
Italy
Netherlands
Norway
Poland
Portugal
Rumania
Spain
Sweden
Switzerland--. __
U S. S. R
Yugoslavia
North America:
Canada
_ _
Cuba
Mexico
South America:
Argentina
Bolivia
Brazil
Chile
Colombia
Ecuador
Peru
Uruguay
Venezuela
Asia:
China
China
China
Hong Kong.
India
Japan
Java
Straits Settlements
Turkey
Africa:
Egypt
l
Schilling
Belga 1
Lev "•
Crown
Krone
Pound 1
Markka
Franc!
1
Reichsmark
1
Drachma
.. .
1
Pengo
Lira 1
Florin
Krone
Zloty i l
Escudo
Leu i
Peseta
Krona
Franc
Chervonetz
Dinar
Par of
exchange
14.07
13.90
.72
4 o Qg
.
26.80
486. 66
2.52
3.92
23. 82
1.30
17.49
5.26
40.20
26.80
11.22
4.42
.60
19.30
26.80
19.30
514. 60
19.30
1923
1924
1925
1926
1927
0. 0014 214. 0612
0. 0014
4. 6438
5. 2190
4. 7580
.7281
.7317
.8837
2. 9542
2. 9656
2. 9550
18. 3643 16. 7228 21.1310
457. 4825 441. 7064 482. 8944
2. 5218
2. 5076
2 6831
5. 2368
4. 7671
6. 0811
.0020 5 22.9980 23. 8013
1. 7141
1. 5614
1. 7900
.0164
.0017
.0014
4. 6016
4. 3580
3. 9776
39.1005 38. 2109 40.1601
16. 6710 13. 9403 17. 8836
.0014 •19. 2280 17. 7432
4. 2527
5.0397
3. 3850
.4832
.4982
.4937
14. 4529 13. 3375 14.3443
26. 5548 26. 5223 26. 8479
18. 0600 18. 2228 19. 3268
14. 0764
14. 0740
3 3. 3721
13. 9157
.7235
.7210
2. 9622
2. 9618
26. 7251
26. 2257
485. 8235 486.1024
2. 5197
2. 5209
3. 2427
3.9240
23. 7638
23. 7996
1. 2579
1.3173
17. 5612
17. 4741
3. 8894
5.1560
40.1065
40.0984
26. 0477
22. 3347
11. 2881
11.1796
5. 0290
5.1254
.6042
.4620
17. 0592
14. 8959
26. 8148
26. 7646
19. 2618
19. 3130
7 515.0000 7 515. 0000
1. 7054
1. 7598
1. 7647
1928
1929
1930
1931
14. 0743
13. 9281
.7207
2. 9625
26. 7426
486. 6223
2. 5173
3. 9210
23.8614
1. 3044
17.4443
5. 2571
40. 2238
26. 6876
11. 2097
4.4675
.6133
16. 5942
26. 8002
19. 2596
7
515. 0000
1. 7598
14. 0575
13.9124
.7216
2.9609
26. 6802
485. 6879
2. 5160
3. 9161
23.8086
1. 2934
17. 4414
5. 2334
40.1622
26.6827
11.1940
4.4714
.5961
14.6833
26. 7839
19. 2792
7
515. 0000
1. 7591
14. 0891
13. 9524
.7209
2.9640
26. 7650
486. 2126
2. 5169
3. 9249
23. 8541
1. 2959
17. 4939
5. 2374
40. 2251
26. 7598
11. 2051
4.4940
.5953
11.6670
26. 8543
19. 3820
7
515. 0000
1. 7681
14. 0227
13.9285
.7163
29. 6186
25.0581
453.4990
2. 3875
3.9200
23. 6302
1.2926
17. 4522
5.2063
40.2298
25. 0546
11.1970
4.2435
.5946
9. 5453
25. 2540
19.4009
7
515. 0000
1. 7680
1. 0722
1. 2818
Dollar
Peso
Silver peso l
100.00
100. 00
49.85
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
99. 9094
99. 9634
48.1067
99. 2472
99. 9647
48.1830
99. 8424
99. 9515
47.1331
96. 3258
99. 9295
8 35.4919
do
Boliviano *
Milreisi
Peso 1
do
Sucre 1
Sol i
Peso
_
Bolivar
Mexican dollar1010
Shanghai tael
Yuan dollar"*
Dollar io
Rupee l
Yen
Florin
Singapore dollar
Turkish pound
96.48
36.50
11.96
12.17
97 33
20.00
28.00
103.42
19 30
78. 5727
78.1308
91. 3822
16. 2285
12. 2423
10. 9403
10. 5448
12.1962
11. 6031
79. 0615
82. 2695
98.4009
92.1497
34. 0941
14. 4357
12. 0766
98 4547
20.0571
374.0965
101. 4740
19. 2565
96. 2950
34.3913
11. 8383
12. 0652
97 6879
18. 9724
373. 7739
101. 3361
18. 9835
96.4801
35. 3911
11. 9737
12.1451
97. 6937
19.9127
397. 0488
102. 6567
19. 2525
95.1274
36. 2776
11. 8078
12. 0601
96 5512
20.0000
399. 9835
98. 6294
19.2973
83. 5050
36. 3771
10. 7136
12. 0785
96. 4930
20.0000
» 35. 6170
85. 8650
18. 9009
66.7375
36. 6246
7. 0290
12. 0669
96.2512
20.0000
28.0671
55.3572
17.0374
22.80
31.43
22.30
22. 63
36.50
49.85
40 20
56.78
439. 65
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.
75.
56.
56.
36.
41.
53. 4984
51.2523
56.1546
49. 9159
68. 4214
49. 9807
53. 3290
36. 3267
47.1163
40 2862
56. 2705
52. 2549
45. 0315
62. 0994
43. 9414
49. 2085
36. 3117
47.4113
40 2377
56. 0476
51.3204
46. 4710
64.3014
46.1378
50.0717
36.4663
46.4096
40 2208
56. 2838
50. 9987
42.1541
58.4153
41. 9007
47.1669
36. 2020
46. 0997
40. 0568
56.0117
48.4105
30. 0861
41.8159
29. 9166
33. 8530
36. 0672
49. 3898
40. 2328
55. 9639
47. 0608
22.4629
31.1243
22.4369
24.3305
33.6895
48.8509
40.2313
52.4451
498. 0954
498. 3123
499. 0254
498. 0689
498. 6002
Egyptian pound
__
5471
7738
9066
5199
2642
0362
494. 31
"• In the following cases the present monetary unit with present par value was quoted for only a part of the period 1923-1931, and the averages
given for earlier years are for the unit which has been superseded:
Present monetary Previous monetary
Par of
unit first quoted
previous
unit
unit
in New York-
Country
Austria
Belgium
Bolivia
Brazil
Bulgaria
Chile
Ecuador
Finland
France
Germany
Mar 13, 1926
Oct 25 1926
Aug. 20, 1928
Dec. 18, 1926
Nov. 22, 1928
Aug. 21, 1925
Mar. 19, 1927
Jan. 2, 1926
__ June 25, 1928
Oct. 29, 1924
Krone
Franc
Boliviano
Milreis...
Lev
Peso
Sucre
Markka
Franc
Mark
.
20. 26
19.30
38.93
32.44
19.30
36.50
48.66
19.30
19.30
23.82
.
Present monetary Previous monetary Par of
unit first quoted
previous
unit
in New Yorkunit
Country
May 14, 1928
Jan 2 1926
_. Apr. 1, 1927
Dec. 21, 1927
_ July 30, 1931
May 18, 1931
Oct 13, 1927
July 1, 1931
_.. Feb. 7, 1929
Greece.
Hungary
India
Italy
Mexico
Peru
Poland
Portugal.
Rumania
Drachma
Krone
Rupee
_
Lira
Gold peso
Sol*
_
Zloty t
Escudo
Leu
19.30
20.26
48.66
19.30
49.85
40.00
19.30
108. 50
19.30
* The sol (par value 40.00 cents) superseded the libra (par value 486.66 cents) Mar. 27, 1930.
t The zloty (par value 19.30 cents) superseded the Polish iiark (par value 23.82 cents) May 26, 1924.
23 Average for schilling Mar. 13 to Dec. 31, inclusive. Average for krone, Jan. 2 to Mar. 12 was 0.0014 cent.
Average for franc Jan. 2 to Oct. 25, inclusive. Average for belga, Oct. 26 to Dec. 31, was 13.9095 cents.
4
Established by new currency law, effective Nov. 27, 1929; for previous status of Czechoslovak crown see BULLETIN for November, 1929, p. 737.
s Average for 1,000,000,000,000 marks Jan. 2 to Oct. 28, inclusive. Average for reichsmark, Oct. 29 to Dec. 31, was 23.8008 cents.
6
Average
for zloty May 26 to Dec. 31, inclusive. Average for Polish mark, Jan. 2 to May 24, was 0.0113 cents per thousand.
7
Nominal.
8
Average for silver peso July 30 to Dec. 31, inclusive. Average for gold peso, Jan. 2 to July 29 was 47.6510 cents.
9 Average for sol, Mar. 27 to Dec. 31, inclusive. Averge for libra, Jan. 2 to Mar. 26, was 400.0000 cents.
» Silver currency. Par of exchange represents gold value of unit in 1931 computed by multiplying silver content of unit by New York average
price of silver for 1931, which was $0.29013. Corresponding parities for the years 1923 to 1930 are as follows:
1923
Mexican dollar
Shanghai tael
Yuan dollar
Hong Kong dollar.
-I
.1
51.25
71.21
50.70
50.89
1924
52.72
73.25
52.15
52.35
1925
54.53
75.76
53.93
54.14
1926
49.04
68.14
48.51
48.69
1927
44.53
61.87
44.05
44.21
1928
45.95
63.84
45.45
45.62
1929
41.88
58.18
41.42
41.58
1930
30.22
41.67
29.56
30.00
55
FEDERAL RESERVE BULLETIN
JANUARY, 1932
FOREIGN EXCHANGE RATES, 1930-31
M O N T H L Y AVERAGES
[In cents per unit of foreign currency]
Czecho- Denmark
Austria Belgium Bulgaria slovakia
January.
February
March
Finland
France Germany Greece Hungary
1930
April...
May
June._ .
July
August
September
October
November
December
January.
February
March
England
14.0597
14.0605
14.0705
14. 0801
14. 0864
14.0898
14.1073
14.1182
14.1131
14.1046
14. 0917
14. 0840
13.9377
13.9271
13.9373
13.9565
13.9541
13.9529
13.9754
13.9838
13.9476
13.9441
13. 9421
13. 9648
.7213
.7212
.7216
.7221
.7219
.7208
.7218
.7219
.7224
.7209
.7181
.7171
2.9583
2.9590
2. 9622
2. 9621
2. 9634
2.9655
2.9658
2.9661
2.9672
2. 9664
2. 9650
2.9664
26.7517
26. 7532
26.7693
26. 7745
26. 7556
26. 7556
26. 7914
26.8150
26. 7670
26. 7557
26. 7417
26. 7442
486. 8823
486.1785
486. 3085
486. 3104
485.9675
485.8667
486. 5691
487. 0709
486.1101
485. 8969
485. 6409
485. 6610
2.5160
2. 5162
2.5166
2. 5171
2. 5172
2. 5172
2. 5173
2. 5175
2. 5173
2. 5170
2. 5170
2.5166
3. 9291
3.9155
3.9132
3.9185
3.9222
3.9241
3.9343
3. 9337
3.9273
3.9235
3. 9271
3.9292
23.8821
23. 8711
23.8573
23.8684
23.8627
23.8498
23.8693
23. 8893
23. 8229
23.8050
23. 8287
23.8404
1.2976
1. 2962
1.2960
L. 2967
L. 2960
1.2955
I. 2961
L. 2969
L. 2958
I. 2949
.2950
L. 2944
17.4912
17.4769
17.4738
17.4718
17. 4772
17.4820
17.5117
17. 5294
17. 5160
17. 5050
17.4949
17.4947
14. 0708
14. 0544
14.0552
14. 0568
14.0543
14. 0457
14. 0413
14.0406
14. 0388
13. 9158
13.9516
13.9460
13.9422
13.9410
13.9294
13.9039
13.9J19
13. 9242
13.9453
13.9376
13.9091
13. 9852
13.9070
13. 9039
.7169
.7178
. 7173
.7174
.7176
.7180
.7183
. 7154
.7160
.7127
.7138
. 7148
2. 9617
2.9598
2. 9624
2. 9619
2. 9622
2. 9621
2. 9605
2. 9624
2. 9621
2. 9619
2.9625
2. 9626
26. 7246
26. 7454
26. 7458
26. 7503
26.7738
26. 7795
26. 7340
26. 7292
25. 2636
22. 0209
20. 6700
18. 5875
485,4684
485.8389
485.8293
485.9863
486.4039
486.4863
485. 6052
485. 7725
453.1260
388.9291
371.9934
337.3707
2. 5169
2. 5178
2. 5177
2. 5172
2. 5172
2.5167
2. 5156
2. 5148
2. 5133
2. 3082
1.9839
1. 6938
3.9207
3.9197
3.9138
3.9104
3.9114
3.9158
3.9215
3.9196
3.9257
3.9383
3.9201
3.9229
23.7719
23. 7693
23. 8072
23.8105
23. 8036
23. 7327
23.2782
23. 6575
23.4212
23. 2395
23. 6777
23. 6192
1.2942
L. 2946
L. 2945
L. 2943
.2949
.2951
L. 2939
L. 2936
L. 2926
L 2883
1. 2879
1. 2879
17.4751
17.4600
17.4411
17.4368
17.4376
17.4450
17.4433
17.4515
17.4496
17.4640
17.4670
17.4580
Sweden Switzerland
U.S.S.R.i
1931
_. __
April...
May
June.. _
July
August
September
October
November
December
_ .
Italy
Nether- Norway
lands
Poland
Portugal Rumania
Spain
Yugoslavia
•
1930
Januarv
_ . . . .
February
March
April
May
. . __
..
June
July
_
August
September
. .
October
November ._ __
December
Januarv
February
March
April
May
June.
July
August
September
October
November
December
5.2331
5. 2346
5.2375
5.2415
5. 2414
5. 2380
5. 2383
5. 2384
5.2371
5.2360
5. 2347
5.2378
40.2279
40.1028
40.1066
40 2013
40. 2255
40.1991
40. 2375
40.2908
40. 2880
40. 2982
40. 2393
40. 2690
26. 7347
26. 7212
26. 7589
26 7719
26. 7570
26. 7634
26.7913
26. 8101
26. 7604
26.7544
26. 7427
26. 7434
11.1973
11 1935
11. 2027
11 2037
11.2020
11.2010
11. 2085
11.2065
11. 2063
11.2119
11.2158
11.2210
4.4969
4.4957
4.4930
4.4954
4. 5013
4.4983
4.4947
4. 5046
4. 4925
4. 4872
4. 4833
4.4839
.5962
.5950
.5953
.5957
.5953
.5947
.5955
.5958
.5959
.5949
. 5944
.5945
13.1044
12.6955
12. 3131
12.4828
12.2283
11. 7490
11. 5243
10. 8762
10. 7255
10. 3448
11.2963
10. 7460
26.8460
26.8262
26.8563
26.8796
26. 8342
26.8480
26.8837
26.8914
26.8680
26.8523
26.8284
26.8309
19. 3486
19. 2938
19. 3453
19.3790
19. 3550
19.3669
19.4279
19.4449
19. 4060
19.4193
19.3875
19. 3792
515.0000
515.0000
515.0000
515.0000
515.0000
515.0000
515.0000
515.0000
515. 0000
515.0000
515.0000
515.0000
1. 7658
1. 7604
1. 7637
1. 7674
1. 7669
1. 7661
1.7704
1. 7727
1. 7716
1. 7717
1.7701
1. 7697
5.2350
5.2350
5.2383
5.2360
5. 2353
5. 2348
5.2300
5. 2304
5.1699
5.1645
5.1548
5.1094
40 2316
40.1378
40.0869
40 1391
40.1847
40. 2442
40. 2775
40. 3182
40. 2677
40. 4256
40.1916
40. 2338
26 7265
26.7462
26. 7501
26. 7530
26. 7761
26. 7801
26. 7346
26. 7328
25. 3982
22.0737
20. 5163
18. 4831
11 2114
11.2025
11.1931
11 1929
11.1950
11.1996
11.1991
11.1970
11.1978
11.1955
11.1903
11.1902
4.4867
4. 4854
4. 4823
4. 4782
4.4918
4.4234
4.4162
4. 4216
4. 4232
3.9271
3.6401
3. 2302
.5944
.5948
. 5947
.5942
.5943
.5949
.5943
.5936
.5936
.5953
.5966
.5959
10. 3967
10.1853
10. 7298
10.4736
10.0004
9.6749
9. 3139
8. 7964
8.9839
8.9631
8.6137
8.3992
26. 7643
26. 7707
26.7775
26. 7758
26.8070
26. 8045
26. 7558
26. 7487
26.0857
23.1140
20. 7378
18. 7098
19. 3574
19.2934
19.2429
19. 2559
19. 2845
19. 3956
19. 4309
19.4862
19. 5096
19.6009
19.4632
19. 4805
515.0000
515.0000
515.0000
515.0000
515. 0000
515. 0000
515.0000
515.0000
515.0000
515.0000
515.0000
515.0000
1. 7679
1. 7633
1. 7587
1. 7585
1. 7603
1. 7685
1. 7665
1. 7694
1. 7653
1. 7734
1. 7856
1. 7796
1931
. .
-
i Chervonetz quotations nominal.
NOTE.—For backfigures(monthly basis), see BULLETIN for January, 1931, January, 1930, January, 1929, and January, 1928. All of the averages
are based on daily quotations, most of which are furnished by the Federal Reserve Bank of New York, in accordance with tariff legislation passed
in May, 1921; the others are taken from unofficial sources, as indicated in detail on p. 57.
56
FEDERAL RESERVE BULLETIN
JANUABY, 1932
FOREIGN EXCHANGE RATES, 1930-31—Continued
MONTHLY AVERAGES—Continued
Canada
Cuba
I Mexico Argentina Bolivia
Brazil
Chile
Colombia j Ecuador
Peru
Uruguay
I
January
February
March
April
May
June
July
August
September
October
November
December
January
February
March
April
May...
June
July..
August
September
October
November
December
47.4393
47. 4758
47. 4921
47. 5414
47. 5356
47. 4135
47.1287
47. 3364
47. 3740
47.1678
46.0995
45.5461
91. 3355
86. 5311
85.6357
88. 6349
87. 2153
84. 4773
82. 0511
82.4855
81. 7843
78. 0538
78.1187
75.5521
36.0000
36.0000
36.0385
36. 5000
36. 5000
36.1000
36. 0000
36.3750
36. 7500
36. 7500
36. 7500
36. 7500
11.0857
11.1533
11.5012
11. 7206
11. 8349
11. 3983
10.8752
9.9571
10. 0850
(22)
()
9. 6121
12. 0556
12. 0319
12. 0518
12. 0549
12. 0746
12. 0777
12. 0908
12.1133
12.1365
12. 0834
12. 0702
12.0955
96.3900
96. 3900
96.3900
96.3900
96.4962
96.6328
96.5542
96.5246
96. 5300
96.5300
96. 5300
96.5531
99.7909 99.9364 46.3566
99.9761 100.0196 46.1950
99.9789 100.0238 47.3546
99.9517 99.9248 47.4843
99.9449 99.9187 48.0200
99.7201 99.9157 49.0305
99.6607 99.9124 49.0109
99.6898 99.9703 i 30. 0269
96.2476 99.9678 33. 4081
89.1025 99.9944 36.5878
88.9914 99.9913 39.1364
82. 7064 99. 9470 39.0086
69.7038
71.9416
78.0406
76.4629
70. 7121
70. 2524
69 8840
64. 5722
59.6948
51.9966
58. 8403
58. 5196
36. 7500
36. 7500
36.7500
36.7500
36. 7500
36.7500
36. 7500
36. 7500
36.7500
36. 7500
36.2283
35. 7500
9. 0721
8. 5601
7.8897
7.2668
6.6756
7. 4991
7.1937
6.3693
5.9099
5.6202
6.1704
6. 2010
12.0663
12. 0673
12.0632
12.0628
12.0673
12.0868
12. 0798
12. 0549
12. 0430
12.0690
12. 0750
12. 0669
96.5700 |
96. 5700
96. 5700
96. 5700
96. 5700
96.5700
96.5700
96.5700
96.5700
96. 5700
96. 5700
96. 5692
Hong
Kong
India
Japan
99.9247
99.2408 100. 0313
99.7637 99.9596
I 99.9501 99. 9189
99.8360 100. 0032
99.9913 99.9403
100.0697 99.9092
100.0943 99.9449
I 100.1206 99.9704
| 100.1033 99.9359
I 100.1037 99. 9639
99.8963 99.9300
_,.
_-.
January
February. .
March
April
May
June
July..
_
August
SeptemberOctober
November.
December1931
20.0000
20.0000
20.0000
20.0000
20. 0000
20.0000
20. 0000
20. 0000
20.0000
20.0000
20. 0000
20. 0000
29.6731
27.8750
27.8365
28.3461
27.9600
27.9308
27. 9738
27.94S1
27.9168
27. 3673
27. 9739
27. 9538
68.1414
69.0778
73.3617
67. 7199
61.4301
58.5356
54.2652
46.0147
41.9254
34.8968
45.0027
44.5487
!
I
i
j
i
!
!
!
i
Java
Straits
Settlements
Turkey
Egypt
35. 6106
34. 3963
33. 8100
33.6670
32. 0607
26.5046
26. 6238
27.8666
28. 7591
28. 2598
27.9918
25. 7151
49.6186
47.9616
47.1132
46.9037
44. 6901
37. 0400
36.9428
38.5445
39. 6795
39. 0962
38. 8392
35. 6987
35.5497 I 39.9497
34.2746 | 38. 2350
33. 6009 j 37. 2238
33.3822 ; 37.1905
31.8181 | 35. 7697
26.3800 ! 31.1427
26.4839 ! 31.1799
27.7580 32. 2054
28. 5500 ! 32. 2015
28. 0003 31.9163
27.8000 31.4542
25. 6394 27.9966
36. 3102
36. 2071
36.1138
36.1163
36.0567
35. 9971
36. 0598
36. 0417
35. 9899
36.0222
35.9656
35. 9305
49. 0905
49.1295
49.3298
49. 3661
49.3809
49. 4070
49. 3597
49. 3853
49. 4077
49.5896
49.5987
49.6185
40.1769
40. 0791
40.1365
40. 2350
40. 2385
40. 2292
40. 2565
40.3023
40. 3068
40. 3188
40.2339
40. 2588
56.0259
56. 0006
55.8994
55. 8744
55. 8892
55.9132
55. 9408
55.9482
56. 0320
56.1687
55.9461
55.9322
47. 3035
46. 6955
47.0823
47. 0542
46.9862
46.9356
47. 0019
47.1035
47.1640
47.1369
47.1048
47.1088
18.5000
18.1364
18.0000
16.9984
16.4332
17.1685
17. 3800
17. 2423
16.9952
16.6385
15.4130
15. 5000
22.9351
20.8153
22. 7936
22. 5646
22.0118
21. 4575
22. 4315
21. 4301
22. 0696
22. 8205
24. 5833
23. 6010
31. 8404
28.9578
31. 5986
31. 0951
30. 2520
29. 5980
31. 0097
29. 7255
30. 6604
31. 8314
34. 0732
32. 8054
22.9102
20.8390
22.7948
22. 4949
21. 8950
21. 4375
22. 4247
21. 3485
21.9166
22. 7019
24. 7246
23. 7323
35.9344
35.9374
36.0805
36.1028
36.1423
35.9986
35.9865
35.9425
33.9117
28. 6799
27.9874
25.3612
49. 4426
49.4054
49. 3656
49. 3601
49. 3813
49. 3740
49. 3550
49. 3532
49. 3351
49. 2525
49.2968
43. 4644
40.2265
40.1409
40. 0904
40.1312
40.1720
40. 2331
40. 2558
40. 3069
40. 3364
40.5026 j
40.2196
40. 2192
55.9309
56. 0028
56.0615
56. 0462
56. 0348
56.0432
56.0198
56.0044
53. 5566
45.1250
43.1386
39. 0313
47.0888 I 497. 8443
47.1255
498. 2255
47.1404 498.2048
47.1323 498. 3359
47.1764 498. 8149
47. 2115 498. 8827
47.1254 497.9971
47.1074 498.1291
47.1988
464. 6467
47.4265
398.9979
Beginning with August, quotations are for silver peso.
» No quotations available Oct. 7-Dec. 1, inclusive.
« Quotation for sol, which susperseded libra, on Mar. 27.
92.9796
88.9679
89.0137
92.9001
92.2102
89.1731
85. 4430
82.9367
82. 3747
79.2496
79.9226
74.9937
19.2500
19. 2500
19. 2408
19.1300
19.1300
18. 9748
19. 0000
18.8304
18. 5000
18. 5000
18. 5000
18. 5000
I
1
400.0000
400.0000
400.0000
3 40.0000
40. 0000
38. 2500
37.6923
35.9808
34.4100
31. 2596
31.0435
30.2981
I
1931
China
China
China
Venezuela (Mexican (Shanghai (Yuan
tael)
dollar)
dollar)
January
February
March
April
May
June
July
August
September
October
November.
December..
20. 0000
20.0000
20.0000
20. 0000
20.0000
20.0000
20. 0000
20. 0000
20.0000
20.0000
20. 0000
20.0000
24. 2653
22.6673
24. 5297
24. 3312
24. 0131
23. 8226
24. 7295
23.7830
24.1853
24. 6765
26. 0124
24.8704
I
499.2997
498.5970
498. 6789
498. 6854
498.3372
498. 2290
498. 9320
499.4600
498. 5066
498. 3123
498.0464
498. 0358
57
FEDERAL RESERVE BULLETIN
JANUAKY, 1932
FOREIGN EXCHANGE RATES
[Monthly averages of dally quotations; based on noon buying rates for cable transfers in New York. In cents per unit of foreign currency]
1931
Country
vem
October I N0hber
or "
EUROPE
Austria
Belgium
Bulgaria
Czechoslovakia-.
Denmark
England
Finland
France
._.
Germany
Greece—
...
Hungary
Italy
-.
Netherlands
Norway
Poland
Portugal
Rumania
Spain
Sweden
Switzerland
U . S . S. R.i
Yugoslavia
Decem- !
ber
SOUTH AMERICA
I
Schilling
13.9158
14.07
13. 9516 13.9460 ! Argentina
13.9852
Belga_
13.90
13. 9070 13.9039 i Bolivia i
.7127
Lev
.72
_.
.7148 B r a z i l .7138
2. 9619
Crown
2.96
2.9626 ! Chile
2.9625
22. 0209 20. 6700 18.5875 I Colombia
26.80
Krone
388. 9291 371. 9934 337.3707 ' Ecuador *
Pound
2. 3082
2.52
1.6938 ' Peru i
Markka
1. 9839
3.92
3. 9383
3.9229 ! Uruguay
Franc
3. 9201
Reichsmark.. 23.82 23. 2395 23. 6777 23.6192 j Venezuela i
1. 2883
1.2879 |
1.30
Drachma
1. 2879
17.4640
17.49
ASIA
Pengo
17.4670 17.4580 i
5.1645
5.1094 |
Lira
5.26
5.1548
Florin
40.20 40.4256 40.1916 40.2338 i China'
22.0737
26.80
20.5163 18.4831 China'—
Krone..
11.1955
11.22
11.1903 11.1802 China»_
Zloty
_
3. 9271
3. 2302 Hong Kong 3_._.
4.42
3. 6401
Escudo
.5953
.5959 India
.60
. 5966
Leu
8. 9631
8.3992 Japan
19.30
8. 6137
Peseta.
Krona
26.80 23.1140 20. 7378 18.7098 Java*
_-..
Franc
I 19.30 19. 6009 19. 4632 19.4805 Straits S e t t l e ments.
Chervonetz. 1514.60 2 515.0000 2 515.0000 2515. 0000
1. 7734
1. 7796 Turkey
Dinar
1. 7856
1.76
Peso
B oliviano
Milreis
Peso
.—do
Sucre
1931
Par of
exchange October Novem- December
ber
! 96.48
_ 36.50
11.96
| 12.17
i 97.33
I 20.00
Sol.
__j 28.00
Peso...
Bolivar
|103.42
_.j 19.30
Mexican dollar.. 23.91
Shanghai tael___ 32.96
Yuan dollar
23.39
23.74
Dollar.
36.50
Rupee
Yen
— 49.85
40.20
Florin
Singapore dol- 56.78
lar.
Turkish pound.. 439.65
51.996C 58.8403
36.7500 36. 2883
5. 6202 6.1704
12. 069C 12. 0750
96. 5700 96. 5700 !
20. 0000 20. 0000
27. 3673 27. 9739
34. 8968 45. 0027
16.6385| 15. 4130
58.5196
35. 7500
6.2010
12.0669
96. 5692
20.0000
27. 9538
44.5487
15. 5000
22. 8205
31. 8314
22. 7019
24. 6765
28. 6799
49. 2525
40. 5026
45.1250
23. 6010
32.8054
23. 7323
24.8704
25. 3612
43.4644
40.2192
39. 0313
5833
0732
7246
0124
9874
2968
2196
1386
47.4265
AFRICA
NORTH AMERICA
Canada
Cuba
Mexico...
Monetary unit
Country
Dollar
_Jl00.00
- Peso
J100.00
Silver peso
49.85
89.1025
99. 9944
36. 5878
88. 9914 | 82. 7064
99.9913 ! 99.9470
39.1364 39. 0086
Egyptian pound. 494.31
Egypt..
I
i Averages based on daily quotations of closing rates as published by New York Journal of Commerce.
*1 Chervonetz quotations nominal.
Silver currency. The figure given for parity, represents gold value of unit in December, 1931, computed by multiplying silver content of unit
by New York average price of silver for December, 1931, which was $0.29013 per fine ounce.
BANK FOR INTERNATIONAL SETTLEMENTS
[In thousands of dollars converted from Swiss francs at par: 1 Swiss franc=$0.1930]
1931
Resources
Nov. 30 Oct. 31
Cash on hand and on current account with
banks
Demand funds at interest
Rediscountable bills and acceptances (at
cost):
Commercial bills and bankers' acceptances
Treasury bills
Total.
Time funds at interest:
Not exceeding 3 months..
Between 3 and 6 months..
Total
Sundry bills and investments:
Maturing within 6 months
Between 6 months and 1 year..
Over 1 year
Total
Other resources
Total resources
-|
2,717
29, 228
1,914
32, 605
1930 !
|
Nov. 30 j
13, 779
1931
Liabilities
Short-term deposits:
Central banks for own accountDemand
TimeNot exceeding 3 months. _.
Between 3 and 6 months..
69, 026
27,942
57,304
27,694
46, 317
32,958
96, 968
84, 998
79, 275
48,027
49,121
202,806
25, 941
48, 027
49,121
27,730
6,529
180
34,439
2,332
31,320
6, 529
2,057
39,907
2,471
Other depositors—
,|
Demand
•
j! Long-term deposits:
!j
Annuity trust account
_
||
German Government deposit
11
French Government guaranty fund.. _
i 36, 869 I]
Total
2,616 | Capital paid in
! Reserves:
!]
Legal reserve fund
I
Dividend reserve fund
Ij
General reserve fund.
j| Other liabilities
Total liabilities..
362,112 I
213,710
211, 016
Total _
Central banks for account of othersDemand
TimeNot exceeding 3 months
Total
Nov. 30 Oct. 31
62,981
73,003
19, 242
35, 552
21,006
92,996
3,002
98,533
94,009 I 115,240
19,400
26, 608
37,293
11,022
30,422
6,020
32, 628
128, 351
165,644
228, 747
655
695
23
29,677
14, 839
13, 249
57, 765
20, 941
29,677
14, 839
13, 249
57, 765
20, 941
29,818
15, 440
13, 255
58, 514
19,795
108
211
422
4,654
213, 710
108
211
422
4,236
211,016
2,896
362,112
i Composed of $36,767,000 short-term investments not exceeding 2 years and $101,000 of investments exceeding 2 years.
58
FEDERAL RESEEVE
BULLETIN
JANUARY, 1932
CENTRAL BANKS
Bank of England
Millions of pounds sterling:
1930—June 25
_._.
July 30
Aug. 27
Sept. 24__
_.
Oct. 29
....
Nov. 26
Dec. 31
1931—Jan. 28
....
Feb. 25
Mar. 25
Apr. 29
May 27
June 24
July 29
Aug. 26
Sept. 30
Oct. 28._
Nov. 25
[For explanation of these tables see BULLETIN for February, 1931, pp. 81-83]
__
Liabilities of banking department
Resources of banking department
Gold (in
—I Note
issue
Deposits
Cash
reserves
.
i
circulaDiscounts
o
Other
j departbecurition
—
and
liabili| ment) i
ties
Notes
advances
Bankers' Public
Coin
her
ties
156.9
152.3
154.8
156.3
159.5
156.6
147.6
139.5
140.8
143.6
146.3
151.0
162.9
132.0
133.3
134.8
135.7
120.7
120.7
1.0
1.0
1.1
1.2
1.0
.6
.7
.8
.9
.9
1.1
1.1
1.3
1.3
1.3
1.3
1.0
58.4
43.9
54.0
60.5
63.9
65.4
38.8
52.7
53.2
54.8
56.5
56.2
70.1
32.7
58.0
52.6
54.6
41.3
31.6
15.9
6.7
6.5
5.7
4.2
6.1
49.0
9.7
8.5
11.4
7.2
6.8
9.6
9.7
9.3
14.8
10.5
12.7
27.3
64.2
74.0 !
71.3
62.6
60.0
56.8
104.7
62.9
64.4
52.1
56.7
59.8
57.5
79.2
78.2
94.9
84.6
87.8
133. 0
358.5
368.4
360.9
355.8
355.6
351.1
368.8
346.8
347.7
348.8
349.8
354.9
352.8
359. 4
350.3
357.2
356.0
354.4
364.2
63.8
61.0
62.6
64.2
55.7
55.9
132.4
55.2
59.1
57.7
48.9
54.8
61.6
55.8
53.6
62.6
63.5
59.8
126.4
Resources
Millions of francs:
1930—June 27..
July 2 5 . .
Aug. 29..
Sept. 26..
Oct. 3 0 . .
Nov. 28..
Dec. 26 _.
1931—3 an. 30...
Feb. 27..
Mar. 27..
Apr. 24..
May 29..
June 26. _
July 3 1 . .
Aug. 28..
Sept. 25..
Oct. 3 0 . .
Nov» 27..
Deci 31 P.
44,052
45,283
47,242
48, 431
50,807
51,967
53, 578
55,510 !
55,924
56,116
55,616
55,634
56,426 i
58,407 I
58,563
59,346
64,648
67,844
68,863
25, 633
26,083
25,602
25, 594
25,616
25,897
26,179
26,323
26,316
26,307
26,305
26,160
26,209
26, 242
27,611
25,194
27,600
24,273
21,501
6,292 I
6,228 j
6,469 I
6,188 i
7,104 I
8, 777 i
8,429 |
9,463 I
8,250
7,084
6,502
6,190
5,576
4,564
5,820
5,880
8,809
7,766
7,389
2,693
2,682
2,731
2,796
2,770
2,868
2,901
2,866
2,801
2,858
2,795
2,806
2,779
2,860
2, 729
2,754
2,712
2,731
2,729
6.6 I
19.4 i
16.2 !
9.5 |
17.7
17.4
25.2
15.2
26.3
30.1
17.3
27.0
7.7
5,395
5,395
5,304
5,304
5,304
5,304
5,304
5,199
5,199
5,082
5,082
5,082
5,082
5,065
5,065
5,065
* 065
5,065
7,157
Other
assets
6,040
6,075
6,379
6,228
6,979
6,687
7,026
7,134
7,316
6,807
8,958
8,193
8,099
8,428
8,647
(3)
Note
circulation
Millions of reichsmarks:
1930—June 30
_
July 31
Aug. 30
Sept. 30
Oct. 31
Nov. 30
Dec. 31
1931—Jan. 31
Feb. 2 8 . :
Mar. 31
Apr. 30
M a y 30
June 30July 31
Aug. 31
Sept. 30
Oct. 31
Nov. 30
Dec* 31 P
Gold
2,619
2,619
2,619
2,479
2,180
2,180
2,216
2,244
2,285
2,323
2,368
2,390
1,421
1,363
1,366
1,301
1,145
1,005
Reserves
in foreign
exchange
72, 594
72,110
73, 677
73,053
74, 787
75,951
76,436
78, 559
78,947
77,864
77,231
78,185
76, 927
79,862
78, 635
78,173
83,639
82,543
85,724
171
198
525
469
199
166
188
157
186
300
246
356
139
131
170
172
6
24
106
206
86
76
142
45
25
74
249
38
124
56
98
1,777
1,759
1,730
2,097
2,301
2,003
2,366
1,942
1,979
1,951
1,816
1,791
2, 579
3,273
3,101
3,545
4,010
3,901
4,144
Other
liabilities
Other
4,938
9,132
10,109
10, 509
13, 089
13,354
12, 624
13,844
13,339
11, 773
11,680
9,940
8,513
9,303
9,470
7,357
8,227
7,170
2,152
2,142
2,207
2,200
2,327
2,362
2,241
2,198
2,221
2,260
2,462
2,394
2,250
2,195
2,227
2,266
2,441
2,442
10,420
8,363
7,734
8,780
8,378
9,833
11, 698
11, 659
10,963
12, 577
12, 062
12, 669
15,187
14, 736
17,649
18, 542
22,954
24,171
22,183
Liabilities
Other
bills (and Security
Securities
loans
checks)
459 I
201
17.9
18.1
18.2
18.3
17.7
17.8
18.0
18.1
18.2
18.3
17.7
17.8
17.9
18.1
18.2
18.3
17.7
17.8
18.0
Deposits
Resources
Reichsbank
36.1
37.4
33.8
34.2
35.0
36.8
36.2
33.4
33.3
33.7
37.0
33.8
33.5
33.7
48.7
52.6
52.6
38.1
40.3
Liabilities
Foreign Domestic j Security Negotiable
bills
loans securities*
exchange
Bank of France
21.5
9.1
18.2
13.3
21.0 j
18.9
186
133
212
290
318
231
256
174
301
274
287
167
355
347
208
301
240
254
245
101
101
103
103
102
102
102
103
102
103
103
103
103
103
103
103
103
103
161
Other
736
839
809
643
638
676
721
936
958
972
1,016
963
980
1,065
Note
circulation
4,685
4,638
4,707
4,744
4,675
4,601
4,778
4,383
4,428
4,456
4,340
4,299
4,295
4,454
4,384
4, 609
4,746
4,641
4,776
Other
liabili-
Deposits
492
398
416
472
383
381
652
267
325
387
355
353
398
834
509
613
518
506
755
!
!
i
I
I
!
!
708
714
719
768
751
808
822
831
832
775
749
731
1,074
1,251
1,251
1,306
1,326
1,323
1,338
1
In addition the issue department holds Government and other securities and silver coin as cover for the fiduciary issue, which is fixed by
law at £260,000,000. Since Aug. 1,1931, however, a temporary increase of £15,000,000 in the fiduciary issue (and securities held as cover) has been
permitted.
1
Issued by the independent office for retirement of public debt (caisse autonome d'amortissement).
• Figures not yet available.
p Preliminary.
JANUARY, 1932
59
FEDERAL RESERVE BULLETIN
CENTRAL BANKS—Continued
[Figures are for last report date of month]
1931
1930
National Bank of Albania (thousands:
of Albanian francs):
!
4,088 I 3,080
Gold
;
1, 956
26,156 I 25,216 26,104
Foreign exchange
.
1.
4,568 4,429
Loans and discounts
j.
3,223
7,943
^,244
Other assets
_
___
:.
7,317
Note circulation
!.
12, 223 12,619 13, 503
Demand deposits,
_•
15, 665 14,119 11,405
14,168 13, 930 | 13,691
Other liabilities
__
_.j.
Commonwealth Bank of Australia '
(thousands of pounds sterling):
j
Issue department—
j
Gold coin and bullion
i 10, 500 10,500 10,500 I 15,386
Securities
J 41,248 41,498 41,498 | 5,716
Banking d e p a r t m e n t 943 I 1,390
Coin, bullion, and cash
;
1,035
Money at short call in Lon- i
8,486
6,
400 ' 4,774
7,198
don
i
Loans and discounts
j 18, 901 22,884 26, 804 13, 500
17,
684
21,683
17,434
17,
261
Securities
I
Deposits
i 47,810 49,712 51,677 43,050
45,
778
39,480
46,395
47,344
Bank notes in circulation
_.|
Austrian National Bank (millions of i
schillings):
190
190
214
190
Gold
115
112
116
200
Foreign exchange of the reserve..
87
43
41
491
Other foreign exchange
767
820
130
Domestic bills
96
96
101
Government debt
1,130 1,134 1,111
1,042
Note circulation
140
91
74
97
Deposits
National Bank of Belgium (millions
of belgas):
2,558 2,567 2,492
1,297
Gold
0
0
0
896
Foreign bills and balances in gold.
957
859
936
748
Domestic and foreign bills
290
290
290
312
Loans to State
3,550 3,602 3,457
3,157
Note circulation
313
334
139
260
Deposits
Central Bank of Bolivia (thousands
of bolivianos):
2,871
2,864
2,759
Gold
23, 511 23,233 37,413
Foreign exchange
22,414
22,045 22,497
Loans and discounts
_
26,183 26,298 32,479
Note circulation
11,098 9,093 14, 578
Deposits
_
Bank of Brazil (millions of milreis):
41
Gold..
_
274
247
265
221
Currency
75
51
144
42
C orrespondents abroad
1,618 1,611
1,660
1,318
Loans and discounts
_
145
146
152
123
Securities
_
170
170
170
170
Note circulation
1,583 1,536 1,481
1,237
Deposits
National Bank of Bulgaria (millions
of leva):
1,510 1,510 1. 509 i 1,448
Gold
51
53
77 I 404
Net foreign exchange.—
478
455
420 !: 1,135
Total foreign exchange._
881
813
861
668
Loans and discounts
:
3,195
Government obligations
_. 3,031 3,030 3,051
3,562
2,981
3,185
3,335
'
Note circulation
!
1,459
Other sight liabilities
_. 1,460 1,274 1,233
Central Bank of Chile (millions of
pesos):
67
67
64
62
Gold at home
131
286
138
144
Foreign exchange
208
199
179
Loans and discounts
_.
311
298
301
292
Note circulation
Deposits against which reserve
54
79
is held
Central Bank of China i (thousands
of Yuan dollars):
3,168 I 15,281
3,374
Gold
46,400 ' 48,542 30,465
Silver
18,954
3,374
!
8,485
Due from banks abroad
23, 241 i 58,055 33,629
Due from domestic banks
65,210
31,619
j
66,652
Loans and discounts
13,646 ! 14,727
2,954
Securities
_
8,678 I 11,959 17,451
Other assets
_
39, 442 i 43,576 21, 982
Note circulation
_
Deposits93,290 '112,690 j 52,623
Government
1
Items for issue and banking departments consolidated.
1930
1931
ISTovem- Octo- ' Sep- November
ber tember
ber
SepNovem-1 i
'Novem- Oetober 11
I ber
ber tember
Central Bank of China—Continued.
Deposits—Continued
Bank
Other
_
___.
Other liabilities
._..
Bank of the Republic of Colombia
(thousands of pesos):
Gold at home
_
Gold abroad
Loans to member banks
Note circulation
Deposits
National Bank of Czechoslovakia
(millions of Czechoslovak crowns):
Gold
Foreign balances and currency...
Loans and advances
Assets of banking office in liquidation
Note circulation.._
__
Deposits
Danish National Bank (millions of
kroner):
Gold.
_
_
Foreign bills, etc
Loans and discounts
Note circulation..„
Deposits
Bank of Danzig (thousands of Danzig
gulden):
Gold
_
Foreign exchange of the reserve..
Other foreign exchange
Loans and discounts
Note circulation
Deposits
_.
Central Bank of Ecuador (thousands
of sucres):
Gold
Foreign exchange
Loans and discounts
Note circulation
Deposits
National Bank of Egypt i (thousands
of Egyptian pounds):
Gold
Foreign exchange
British Government securities. _.
Loans and discounts
Egyptian Government securities.
Other assets
Note circulation
DepositsGovernment
_
_.
Other
Other liabilities
Bank of Estonia (thousands of
krooni):
Gold
_
Net foreign exchange
Loans and discounts
Note circulation
Deposits—
Government
Bankers..
__
Other
_
Bank of Finland (millions of Finnish
marks):
Gold
Balances abroad and foreign
credits
_
Foreign bills
_
Domestic bills
Note circulation
Demand liabilities
_.
Bank of Greece(millions of drachmas):
Gold
Net foreign exchange in reserve..
Total foreign exchange
Loans and discounts
Government obligations
Note circulation.
Other sight liabilities
11,024 j 29,865 8,243
5,072 i (5,485
3,149
30,469 ! 32,085 36,869
10,684 10, 997 8,108
4,634 4, 558 6,590
18,771 19, 514 19, 396
19,711 19,165 18,730
11,330 9,027 7,097
18, 250
9,171
11,396
25, 540
6,101
1,567
1,146
1,656
1,552 ' 1,520 1,546
1,128 !' 1,177 2,344
1,765
1,722
180
299
7,166
194
299 | 300
326
7,218 j 7,172 7,278
238 i 309
382
144
39
155
340
49
164
45
151
164
55
115
334
36
172
93
76
354
30
21,830
21,533
6,403
9,457
42, 747
6,111
21,784
15,079
11, 776
10, 231
43,827
5,972
15, 706
15, 593
10, 474
11,446
42,133
3,556
118
16,337
15,099
18, 865
37, 345
1,301
5,653
11,649
14, 400
20, 220
9,684
5,666
15,044
15,305
20, 473
12,777
5,622
22,354
14,619
23,717
13,847
4,225 4,224
1,217 1,099
15, 470 15,368
9,321 8,331
14, 996 14,729
3,690 3,846
19,543 19,264
4,043
2,508
18,160
8,406
14, 382
3, 685
21,900
5,102
16,142
8,133
4,424
15,890
8,019
5,567
15,091
6, 552
6, 549 6,547
13,970 | 15,927 17,253
23,166 j 23, 558 20,614
37,124 j 38,094 34,362
6,541
16,730
26,194
33,452
5,117
5,434
1,996
9,782
4,069
1,348
4,893 ! 5,673
3,429 j 3,101
2,071 ! 1,961
304
305
301
302
305
201
1,113
1,237
207
365
213
936
1,264
164
462
185
707
1,201
31
812
212
720
1,263
215
1,281
1,480
523
3,128
3,987
891
1,510
1,713
443
3,148
4,297
777
491
1,865
2,503
454
3,168
4,422
635
528
2,665
3,343
315
3,389
4,761
1,841
60
FEDERAL RESERVE BULLETIN
JANUARY, 1932
CENTRAL BANKS—Continued
[Figures are for last report date of month]
1931
NoSepNovember October tember vember
Central Bank of Guatemala (thousands of quetzales):
Gold coin
Balances abroad
__.
Loans and discounts
_
Other assets
Note circulation—
Demand deposits
Other deposits
Other liabilities
._.
National Bank of Hungary (millions
of peni
2,228
307
5,998
1,560
6,351
1,170
77
2,496
2,246
637
5,907
1,660
6,570
1,278
101
2,501
2,619
435
5,810
1,295
6,122
1,377
145
2,514
105
12
421
58
37
392
148
63
105
16
422
58
41
435
114
61
105
7
385
59
44
383
119
65
5,570
2,551
5,251
14,441
300
1,450
5 445
2,937
4,838
14, 481
300
1,614
118
1,093
459
818
702
117
989
621
132
3
51
239
27
126
4
52
238
30
32
14
81
59
42
58
85
24
22
80
60
44
61
81
48
42
124
121
84
40
55
118
118
Foreign bills, etc
Loans and discounts.
Advances to treasury
Other assets
_.
Note circulation.Deposits
_
Miscellaneous liabilities
Bank of Italy (millions of lire):
5,626
Gold at home
2,361
Credits and balances abroad
Loans and discounts
5,109
14, 254
Total note circulation
Public deposits
300
Other deposits
1,910
Bank of Japan (millions of yen):
558
Gold
931
Advances and discounts __
Government bonds
118
1,087
Notes issued
Total deposits.
_
519
Bank of Java (millions of florins):
132
Gold
Foreign bills
_._
5
Loans and discounts
50
Note circulation
_
234
Deposits
_
28
Bank of Latvia (millions of lats):
32
Gold.
13
Foreign exchange reserve
79
Bills
59
Loans
41
Note circulation.58
Government deposits
_.
87
Other deposits
_
Bank of Lithuania (millions of litas):
Gold
40
Foreign currency
118
Loans and discounts
113
Note circulation
_.
Deposits
Netherlands
Bank
(millions of
florins):
901
Gold..
Foreign bills
66
Loans and discounts
219
Note circulation
1,051
Deposits
_...
199
Bank of Norway (millions of kroner):
Gold
158
Foreign balances and bills
_.
8
Domestic credits
236
Note circulation288
Foreign deposits
2
Total d e p o s i t s . __..
Central Reserve Bank of P e r u
(thousands of soles) :
Gold
-._
Foreign exchange
Bills
__
Note circulation-.
Deposits
_
Bank of Poland (millions of zlotys):
Gold at h o m e .
_.
486
Gold abroad
111
« Corrected.
100
264
1,037
220
1931
1930
702
219
221
1,035
187
172
11
230
295
2
145
36
218
302
4
81
59, 347
2,861
14, 317
56, 641
3,219
«44, 745
«20, 079
«15, 545
"57, 676
« 7,143
486
108
82
Bank of Poland (millions of zlotys)—
Continued
Foreign exchange of the r e s e r v e . .
Other foreign exchange
Loans and discounts
___
Note circulation
Current account of the treasury _.
Other current accounts
National Bank of Rumania (millions
of lei):
Gold a t home
Gold abroad
163
Foreign exchange of the reserve._
27
Other foreign exchange
253
Loans and discounts
67
State debt
104
Note circulation. _
439
D e m a n d deposits
32
South African Reserve Bank (thous116
ands of South African pounds):
Gold
5,296
Foreign bills.
_
4,500
Domestic bills
_
4, 350 j
Note circulation. _
15,679 I
Deposits300 I
Government
1,600 j
Bank
Other
820
Bank of Spain (millions of pesetas):
768
Gold...
118
Silver
1,191
Balances abroad
635
Loans and discounts
Note circulation __
139
Deposits.
31
52
Bank of Sweden (millions of kronor):
Gold
255
Foreign bills, etc
41
Loans and discounts
24
Note circulation
39
Deposits...
87
Swiss National Bank (millions of
61
francs):
50
Gold
85
Foreign balances and bills
74
Loans and discounts
Note circulation
D e m a n d deposits
Bank
of t h e Republic of Uruguay
100
(thousands
of pesos):
116
Gold
102
Loans and discounts
Other assets
N o t e circulation
426
Deposits—
249
Demand
135
Time
813
Judicial and Administrative42
Other liabilities
S t a t e Bank of U. S . S . R. (note-issu146
ing department; thousands of
31
chervontsi):
200
Gold
_
_
303
Other precious metals
1
Foreign exchange
58
Note circulation
National Bank of the Kingdom of
62,573
Yugoslavia (millions of dinars):
7,734
Gold.
22,318
Foreign exchange
64,862
Loans and discounts
_.
3,963
Advances to S t a t e . .
Note circulation
485
Other sight liabilities
77
2,647
1,578
6,342
971
6,232
1,563
514
3,230
November
O c t o b e r
84
126
751
1,211
37
172
5,874
3,114
1, 721
34
13, 962
5, 237
23, 519
5,966
1930
Notemb'er vember
116
78 I
134
132 |
737
765 i
1,225
1,254
24
12 I
174
153 !
301
125
755
1,332
83
143
5,816
3,114
1,554
14
12,261
5,485
21,861
6,160
5,356
3,919
1,736
99
8,011
4,699
18,726
6,713
5,842
3,114
1,738
20
13, 727
5,337
23,243
6,027
7,700 i
29 j
3,755
8,067 !
6,189
0i
4,570 i
8,340 i
6,541
6,241
133
6,852
7,163
6,245
902
8,462
1,672
4,115
501
1,986
4,300
192
1,694
4,809
299
1,765
4,530
205
2,247
526
282
3,160
4,954
1,135
2,247
530
286
3,220
5,073
1,104
2,277
559
255
3,073
5,025
1,054
2,458
706
110
2,090
4,642
841
206
31
553
576
119
213
28
528
579
102
199
36
574
594
124
242
401
144
588
119
2,201 i 2,188 ! 1,699
84
105 i
349
135 !
92
124
1,477 I 1,498
1,462
953 !
716
672
353
67
968
199
.i 51,215 52,665
J102,820 ! 104,778
.1 35,953 35,540
.j 76,124 74,359
58,383
109,920
32, 534
70,715
i 35,278 I 39,642
39,040 40,149
3,538
3,543
J 36,008 35,290
42,387
45,217
3,649
38,868
61, 257 60,025 ! 56,931
2,224
2,226 ; 2,238
4,768
4,808
5,259
267,321 259,633 252,715
48,407
2,472
4,472
208,012
1,758
491
2,161
2,100
5,239
552
1,757 !
657 i
2, 088 !
2,325 i
5,302 i
871 i
1,657
550
1,819
2,294
5,197
342
1,078
162
1,557
2,997
5,404
61
FEDERAL RESERVE BULLETIN
JANUARY, 1932
GOVERNMENT NOTE ISSUES AND RESERVES
[Figures are for last report date of month]
1930
1931
Oct. I Sept. Nov.
Nov.
Argentine Conversion Office (millions of
gold pesos):
Gold
_...
Notes issued 1
_
Irish Currency Commission (thousands
of pounds sterling):
Legal tender note f u n d British legal tender and bank
balances.
British securities
Notes issued.
Consolidated bank notes 2—
Issued
Deemed such under sec. 60 (4)
of currency act, 1^27
1930
C a n a d i a n M i n i s t e r of F i n a n c e (millions
of dollars):
Gold reserve against D o m i n i o n n o t e s . A d v a n c e s t o b a n k s u n d e r finance act__
Dominion n o t e s 197
Issued
29
Outside chartered b a n k h o l d i n g s . .
I n d i a n G o v e r n m e n t (millions of r u p e e s ) :
Gold s t a n d a r d reserve—
399
Gold
_
Foreign exchange
135
Paper currency r e s e r v e 45
Gold
1,294
Silver coin a n d bullion
285
O t h e r assets
1,624
N o t e s issued
112
158
30
150
28
207
29
399
134
401
132
29
505
43
1,316
239
1,598
42
1,325
120
1,487
1,227
99
1,648
]
1
Includes a small quantity of subsidiary coin, amounting on Nov. 30, 1931, to 15,000,000 pesos.
^The figures of consolidated bank notes issued represent daily averages for the 4 weeks ended Nov. 14, Oct. 17, and Sept. 19, 1931, and Nov. 15,
1930. The figures for notes deemed to be consolidated bank notes are as of the close of business on these dates.
COMMERCIAL BANKS
-
1931
1930
Country
Nov.
Argentina (millions of gold pesos):
Bank of the N a t i o n Gold
Other cash
Loans and discounts
Deposits -. .
-.
Other banks in Buenos A i r e s Gold
—
Other cash
Loans and discounts
Deposits
Canada (millions of Canadian dollars):
Assets entirely in lC a n a d a Cash in vault
Cash in central gold reserves...
Security loans
Other current loans
Security loans abroad
Securities
Liabilities entirely in CanadaNotes in circulation
Individual demand deposits
Individual time deposits
England (millions of pounds sterling):
Cash in vault and at bank
Money at call and short notice
A dvances and discounts
Investments
Deposits
France (millions of francs):
Bills and national-defense bonds
Loans and advances
Demand deposits
Time deposits
Germany (millions of reichsmarks):
Bilis and treasury notes _ _ .
Due from other banks
_
Miscellaneous loans
Deposits
Acceptances
Japan (millions of yen):
Cash on hand
Loans
Deposits
.
._
Dec.
Jan.
Mar.
Feb.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
1
120
612
730
1
99
624
729
1
98
610
713
1
83
606
706
2
85
626
695
1
125
640
712
1
118
633
690
1
108
642
706
1
99
655
680
1
94
656
662
1
91
681
663
1
90
708
661
9
189
906
1,032
9
206
918
1,047
9
202
913
1,045
Q
209
910
1,043
9
173
912
1,020
9
172
910
997
9
180
885
996
9
202
871
990
9
194
857
971
9
199
843
971
7
190
852
966
186
847
947
203
37
212
1,184
193
551
174
33
205
1,149
146
604
158
22
192
1,141
120
593
151
25
186
1,116
132
654
148
27
175
1,115
137
649
157
26
181
1,130
117
651
156
29
187
1,139
98
669
150
28
182
1,127
108
695
147
26
163
1,126
105
694
147
28
159
1,127
110
701
157
24
167
1,137
"90
678
159
27
159
1,141
91
696
201
25
157
1,102
113
* 719
145
605
1,439
133
642
1,426
129
557
1,429
131
543
1,436
153
579
1,445
124
596
1,453
129
580
1,456
128
601
1,450
126
561
1,451
126
568
1,461
128
594
1,456
140
581
1,462
131
617
1,396
189
137
1,230
265
1,801
204
142
1,234
269
1,839
195
143
1,237
281
1,836
187
115
1,208
293
1,782
181
112
1,159
295
1,726
175
115
1,134
292
1,698
176
129
1,141
274
1,700
184
131
1,172
272
1,744
181
128
1,178
283
1,750
177
112
1,156
286
1,708
171
106
1,132
288
1,675
173
113
1,131
288
1,688
170
108
1,125
284
1,670
20, 564 20, 502
11,283 11,392
35, 767 35, 302
1 605 1 397
21,081
10,764
35,090
1 521
21,098
11,326
35, 456
1 656
21, 363 21, 869
11,232 11,156
36,106 36,971
1 669 1,623
22,930 22, 507
10,762 10,342
37,861 37,938
1,601 1 564
2,497
946
8,225
10, 729
657
2,532
956
8,144
10,778
630
2,529
981
8,021
10,683
600
2,548
857
7,818
10, 395
582
1,914
686
7,699
9,277
816
1,280
546
7,337
8,167
874
1,500
514
7,115
8,060
840
1,509
465
6,884
7,873
818
1,406
373
6,837
7,500
891
1,431
345
6,748
7,390
910
277
2,217
2,142
274
2,176
2,150
332
2,184
2,161
361
2,156
2,181
274
2,166
2,233
134
2,169
2,151
217
2,140
2,122
197
2,146
2,102
126
2,171
2,066
146
2,208
2,059
2,453
1,017
8,534
11, 077
670
2,573
1,011
8,192
11,130
701
272
2,206
2,076
281
2,225
2,100
275
2,220
2,009
20,919 21,153 20, 242
9,898 9,808 10, 076
36,642 36,991 36,137
1,539 1 545 1 429
* Gold, Dominion notes, and subsidiary coin.
« Corrected.
NOTE.—Banks included are as follows: Canada—chartered banks; England—nine London clearing banks; France—four commercial banks;
Germany—six Berlin banks; Japan—Tokyo banks.
62
FEDERAL BESEBVE BULLETIN
JANUARY, 1932
DISCOUNT RATES OF CENTRAL BANKS
Date effective
Swiss
• Bank
Bank German' Bank Nether- Nation! of Engof
Reichs-j of
lands
al
i land j France bank i Italy
Bank
Bank
In effect Apr. 1,1930. |
Apr. 3
i.
:
Apr. 24
.
Mayl
I
May 2
1.
May 19
;.
May 20
j.
June 21
:.
July 10
i.
Oct. 9
,.
Jan. 3, 1931
L
Jan. 22
Jan. 24
|.
May 14
May 16
June 13
July 16
July 23
July 30
Aug. 1
Aug. 12
Sept. 2
Sept. 21
Sept. 28
Sept. 29
Oct. 10
Dec. 10
In effect Jan 1, 1932.
| Rate ;
j Jan. ;
Country
In effect
since-
In effect
since—
!
i
Albania
8 July 1,1931
Austria
Nov. 13,1931
Belgium
234 Aug. 1,1930
Bolivia
7 i Aug. 26,1930
Bulgaria
QW Sept. 29,1931
Chile..
6H Oct. 6,1931
7 | Sept. 18,1930
Colombia
Czechoslo6 ! Dec. 22,1931
vakia
Danzig_
5 Nov. 24,1931
Denmark
6 Sept. 26,1931
Ecuador
10 Mar. 13,1931
Estonia
6k Sept. 1,1931
Finland
! 8 Oct. 24,1931
Greece
| 11 Oct. 29,1931
Hungary
8 Sept. 11,1931
India..
! 8 Sept. 22,1931
7
10
Rate!
Jan. !
Country
Japan
Java
Latvia
Lithuania
6.57! Nov.
4H I Mar.
6
Oct.
Apr.
4,1931
11,1930
1,1950
1,1930
Norway
Peru
Poland
Portugal
6
Oct.
Sept.
Oct.
Aug.
19,1931
1,1980
3,1930
10,1931
7H
Rumania
South Africa.
Spain
Apr. 1,1931
Nov. 13,1931
July 8,1981
Sweden
U. S. S. R . . .
Yugoslavia-
Oct. 19,1931
Mar. 22,1927
7H j July 20,1931
Changes since Dec. 1,1931: Czechoslovakia—Dec. 22, down from
to 6 per cent; Germany—Dec. 10, down from 8 to 7 per cent.
15
10
8
2*4.
7
3
MONEY RATES IN FOREIGN COUNTRIES
Bankers'
acceptances,
3 months
Month
1930— November
December
1931—January
February
March
April
May
June
July
August.• September
October..
November
2.18
2.30
2.25
2.56
2,60
2.58
2.24
2.09
2.58
4.28
4.74
5.68
5.75
Treasury
bills, 3
months
I Belgium
I (Brussels) !
France
(Paris)
Private
discount
rate
Private
discount
rate
Month
1930—November
December
1931—January
February
•
March
;
April
...J
May
j
June
July
i
August
i
September
I
October
]
November
|
2.05
2.34
2.38
2.31
2.25
2,25
2.20
2.13
2.15
2.41
2.44
2.44
2.44
Bankers'
Day-to-day allowance
money
on deposits
2.15
2.34
2.24
2.37
2.56 !
2.57 !
2.21 !
2.10 I
2.44
4.21 \
4. 67 i
5.46 ;
5.55 I
2.00
2.03
1.89
1.77
1.57
1.47
1.28
1.06
1.20
1.50
1.50
1.80
Private
Money for I Day-to-day discount
1 month j money
rate
6.51
7.24
6.64
6.31
6.17
5.87
5.83
7.05
18.98
»9.18
9.18
9.84
9.31
Austria (Vienna)
Private i Private
discount \ discount
rate
j
rate
5.43 ]
5.50
5. 50 i
5.50
5.50 !
5.48 j
5.25 !
5.25 i
5.25 j
5.25 1
5.47 |
7.50
Private
discount
rate
4.79
4.82
4.75
4.88
4.76
4.65
4.65
6.05
17.00
»8.92
7.99
8.00
8.00
2.01
1.60
1.74
2.29
2.20
2.17
1.87
1.64
2.05
3.59
4.04
4.36
4.96
Italy
(Milan)
Netherlands (Amster- | Switzerdam)
i
land
Germany (Berlin)
England (London)
Money
forl
month
-4
5^-6
5H-6
5H-6
5H-6
»5J4-6
.31
.39
.38
L.12
L. 09
.60
.39
.05
.53
.30
1.30
2.76
1.59
Sweden
(Stockholm)
Hungary
Prime 'lTi t d
commer- j Z ™ 2
i cial paper ; I u o n e y
1.29
1.86
1.55
1.05
1.04
1.61
1.55
1.07
1.40
1.22
1.21
3.07
1.72
1.16
1.18
1.17
1.00
.99
1.08
1.12
1.12
1.55
1.98
1.80
1. 90
1.77
Japan (Tokyo)
|
%- 7W
<n- 7H'
-4Me
-4
4
5.48
6.54
4.93
5.49
5.00
6.67
5.38
6.74
18.89
8
9.15
9.15
9.21
8.69
Private
discount
rate
Money for
1 month
<%- 7%\
H5
4J4-5
4H-5H
4J4-5
months
7M10
o
j overnight
3^-6H! 5.48-5.66 i
41/4-5
VA- 7
5V4- 7
5H- 8
um
4 -5
4H-5
H
6
-7
5.48-5.66 !
5.48-5.66 i
5.48
5,29-5.48 ;
5.29-5.48 ;
6.29-5.48
5.29-5.48
4. 93-5. 48
4. 93-5. 48
4. 93-5. 48
4. 93-5. 06
3.65
3.65
3.10
2.92
2.74
2.92
2.19
2.19
2.74
3.65
2.56
5.48
1
Average for first 11 days of July, no quotations being available for remainder of month.
*8 Average for final 22 days of August, no quotations being available for remainder of month.
Average for first week of June, no quotations being available for remainder of month.
4
No quotations available.
8
Range for first 13 days of July, no quotations being available for remainder of month.
NOTE.—For sources used, methods of quotation, and back figures, see BULLETIN for November, 1926 (pp. 794-795), April, 1027 (p. 289), July, 1929
(p. 503), November, 1929 (p. 736), and May, 1930 (p. 318)
63
FEDERAL RESERVE BULLETIN
JANUARY, 1932
PRICE MOVEMENTS IN PRINCIPAL COUNTRIES
SECURITY PRICES
[Index numbers except as otherwise specified]
Common stocks (1926 average** 100)
Bonds
United
States
(average
price)
Year and month
Number of issues
1926
1927
1928
1929
1930
1926—November
December
1927—January
February
March
\pril
May
June
July
August
September
60
>..
.
November
December
1928—January
February. »
.
March
April
May
June
July
.
August
September
October
November
December . .
.
1929—January
February
March . . . _
April
May
_
_. June
July
.
August
September .
.
October
._
November
December , _
.»
1930—January
February
March
. -April
M.ay
June
« _ _ _ - -July
August
September
_ »„
October
November
December
- ..
_
1931—January
February
March
.
April
May
June
July
August
SeDtcmbcr
October
November
_
_--
_
_
97.0
98.9
98.7
95.7
98.3
97.6
97.8
97.9
98.1
98.4
99.0
99.1
98.4
98.4
98.8
99.3
99.6
99.7
100.0
100.3
100.3
100,5
100.3
99.7
98.5
97.9
97.2
97.5
97.5
97.8
97.2
97.0
96.3
95.8
95.8
95.7
95,3
95.2
95.0
94.8
95.1
95.7
96.5
96.6
96.4
97.8
97.9
97.9
98.2
98.7
99.6
100.0
99.9
99.1
97.8
99.6
99.4
100.0
99.6
99. 7
99.4
99 4
98 5
95 6
89 4
89.0
England
France
(December (1913 aver1921 -100) age =100)
87
110.0
110.7
112.3
110. 2
111.8
109.3
109.3
111.3
110.5
110.3
110.6
110.6
110.1
110.3
110.6
110.7
111.9
110.6
111.2
112.4
112.3
112.4
113.7
112.4
112.4
112.1
112.1
111.7
112.3
112.1
112.1
113.4
111.7
111.1
111.9
110.4
109.8
109.3
109.0
108.9
109.3
108.5
108.5
109.6
110.1
112.7
112.7
111.4
110.0
112.3
111.9
112.0
113.1
112.8
112.5
112.8
109.7
111.6
111.3
110. 8
111.1
111 2
107.2
103 6
104 2
104. 8
35
57.4
71.7
82.8
85.1
95.8
60.2
62.8
66.0
65.4
71.0
73.9
72.7
72.1
72.2
72.6
73.1
72 3
72.7
76.8
80.4
80.2
80.3
81.3
81.8
84.3
83.7
84.9
84.9
84.4
83.8
84.1
83.6
81.8
81.7
83.0
84.2
84.8
84.6
84.8
86.9
86.6
87.7
91.6
97.5
96.3
95.8
95.5
95.3
95.8
95.7
96 6
96.4
95.4
94.7
94.1
95.7
97.1
97.9
99.0
98.4
98.8
98 9
99. 5
97 7
94 8
94.4
Germany
(average
price)
United
States
England
France
Germany
»177
404
278
300
32fi
86.9
83.0
85.0
89.4
88.6
87.8
87.5
87.2
86.8
86.5
86.2
85.9
85.6
85.4
85.4
85.6
85.3
84.8
84.2
82.7
82.7
82.8
82.5
82.1
81.3
81.0
80.7
81.2
82.2
82.6
84.7
86 7
87.1
88.0
87.5
86.9
84.7
84.5
83.9
84.0
84.3
85.9
87.4
86.4
83.9
100.0
118.3
149.9
190.3
149.8
103.1
105.4
105.6
107.9
109.1
111.1
114.2
115.4
117.2
122.0
127.7
126.7
129.6
133.1
134.4
132.3
137.9
145.9
152.1
145.3
144.2
148.3
156.6
159.1
171.1
171.4
185.2
186.5
189.1
186.6
187.8
190.7
207.3
218.1
225.2
201.7
151.1
153.8
156.3
165.5
172.4
181.0
170.5
152.8
149.3
147.6
148.8
127.6
116.7
109.4
112.3
119.8
121.6
109.2
98.0
95.1
98.2
95.5
81.7
69.7
71.7
300.0
107.0
115.9
119.5
102.6
102.1
102.0
104.1
105.1
104.4
105.5
106.4
106.3
106.7
107.4
108.3
109.7
109.6
110.4
111.1
111.0
114.0
116.2
118.6
114.7
114.0
115.9
117.7
119.2
119.8
119.8
122.8
121.7
121.0
119.8
118.3
118.6
121.7
123.5
124.3
120.8
110.4
110.5
110.2
109.9
109.2
111.1
108.0
101.8
103.1
98.4
101.1
95.4
94.1
89.0
89.6
89.3
89.4
85.1
76.8
77.8
79.2
73.8
67.2
75.6
74.7
100.0
123.2
178.5
217.2
187.6
102.6
99.6
109.4
112.4
120.2
129.2
125.8
120.6
124.9
123.6
125.3
126.2
124.5
135.2
148.1
143.3
157.9
177.8
179.8
180.7
170.4
189.3
193.6
193.1
200.4
207.3
233.0
235.2
229.6
222.3
219.7
210.7
213.3
215.0
222.3
209.9
197.9
198.7
212.9
205.6
205.2
208. 8
198.3
187.6
188.8
182.0
182.4
169.5
162.2
149.8
156.7
160.1
155. 4
148.5
138.2
141.2
132.6
130.5
115.5
109. 9
104.3
100.0
145.0
136.1
122.8
100.2
130.6
130.3
149.3
158.3
153. 7
162.8
156.1
• 142.4
147.0
144.5
139.4
134.9
122.2
129.3
135.8
132.4
130.6
136.1
140.2
141.2
137.2
136.9
137.2
135,2
135.0
136.4
135.4
130.0
129.4
129.5
124.2
127.2
124.5
123.1
121.5
114.4
109.9
105.7
110.1
110.6
109.2
112.1
111.7
106.8
100.8
94.8
93.9
87.9
84.7
80.0
75.0
78.5
83. t
84.8
76.1
69. e
i Approximate number; series originally included 208 issues, from which those bearing 10 per cent interest have been eliminated in recent
revision. In 1928 the number of such issues was 31.
Stock price series for England, France, and Germany have been converted from original bases to a 192G base; for original figures—except for
revised series on German bonds—see BULLETIN for February, 1^31 (p. 91) and March, 1931 (p. 158).
SOURCES: United States—Standard Statistics Co., New York; description (and back figures) in Standard Statistics Bulletin, General Section, Base Book Issue for 1930-31 (pp. 63, 66, and 104). England—Bankers Magazine, London; description in issues for February, 1922 (p. 227) and
February, 1923 (p. 2ol); back figures in current issues. France—Statistique G6nerale, Paris; description (and back figures) in Bulletin de la Statistique GSnerale, for July, 1927 (pp. 390-397). Germany—Statisches Reichsamt, Berlin; description in Wirtschaft und Statlstik; Bonds-February,
1928 (p. 144) and April, 1931 (p. 338); stocks (with back figures)-January, 1929 (p. 62).
64
FEDERAL RESERVE BULLETIN
JANUARY, 1932
PRICE MOVEMENTS IN PRINCIPAL COUNTRIES—Continued
WHOLESALE PRICES—ALL COMMODITIES
United States
(1926=100)
Canada
(1926 =• 100)
England
(1913=100)
France
(1913=100)
1930
1930
1930
Germany
(1913=100)
Japan
(Oct.,
1900-100)
Italy
(1913*100)
Month
1930
1931
1931
January...
February..
March
April
May
June..
July
August
September.
October. _.
November.
December.
1931
131
128
125
124
122
121
119
118
116
113
112
109
107
106
106
106
104
103
102
100
99
104
106
576
567
553
548
546
540
558
560
556
552
551
541
1931
1930
541
538
539
540
620
518
500
488
473
457
447
132
129
126
127
126
125
125
125
123
120
120
118
1931
115
114
114
114
113
112
112
110
109
107
107
1930
1931
1930
342
338
339
337
332
327
324
322
319
322
320
417
408
400
396
389
382
375
379
374
364
361
350
Netherlands
(1913*100)
1930
1931
201
200
196
193
189
181
177
176
172
165
162
161
131
126
122
122
118
118
115
114
112
111
110
107
158
158
158
158
154
151
153
152
150
147
147
1931
105
104
103
102
102
100
97
94
91
WHOLESALE PRICES—GROUPS OF COMMODITIES
[Groups are those comprised In indexes shown in preceding table]
United States (1926=100)
Month and year
Farm
products
England (1913*100)
Other
commodities
Foods
Foods
Industrial
products
France (1913*100)
Farm
and food Industrial
products products
Germany (1913-100)
Agricultural
products
Industrial
raw and Industrial
semifinished
finished
products
products
Provisions
1930—October
November. __
December
83
79
75
89
86
82
82
80
79
121
121
116
109
107
105
562
570
570
543
535
516
109
112
110
108
108
105
114
113
110
147
145
143
1931—January
February
March
April
_
May
June
July
August
September . . .
October
November...
74
70
71
70
67
65
65
64
61
59
59
80
77
77
76
73
72
73
74
73
73
71
78
77
76
74
73
72
72
72
72
71
72
113
112
111
113
113
113
110
108
108
113
115
104
103
103
102
100
98
98
95
95
100
102
580
675
581
592
566
571
541
528
508
489
482
507
505
603
495
480
472
465
452
443
429
416
107
106
107
108
109
107
105
103
101
99
99
102
100
99
97
96
95
97
96
94
95
94
108
106
106
105
103
103
103
102
100
99
99
142
140
139
138
137
137
136
136
135
133
132
RETAIL FOOD PRICES
COST (OF LIVING
1
United
States
Month
January
February
.
March
April.
.
May
June
July
August
September
October
November. _ _ _ _
December
1
(1913=100)
England
(July,
1914=100)
France
(July,
1914=100)
Germany
(191314=100) i
1930
1931
1930
1931
1930
1931
1930
155
153
150
151
150
148
144
144
146
144
141
137
133
127
126
124
121
118
119
120
119
119
117
157
138
136
134
129
129
127
130
128
128
128
130
124
121
120
119
120
120
122
127
129
129
131
132
132
132
131
130
129
128
125
121
119
116
113
150
148
145
143
142
143
146
145
142
140
138
135
154
150
143
140
138
141
144
144
143
144
141
j
Month
1931
134 i January
131 • February
130 I M a r c h . .
129 i1 April
May
130
131 ' June
130
July
126 ' August
125 i September
123 i October
122 i November
United
States
(1913=100)
England
(July,
1914=100)
France
Jan.-June,
1914-100)
Germany
(191314=100) *
1930
1930
1931
1930
1931
1930
166
164
161
157
155
154
155
157
157
156
157
155
153
152
150
147
147
145
147
145
145
145
146
115
120
116
120
120
115
1931
.__
.
-
167
.-_
i December
161
150
121
152
150
149
147
147
148
149
149
147
145
144
142
1931
140
139
138
137
137
138
137
135
134
133
132
Average of October, 1913, January, April, and July, 1914=100.
SOURCES: Wholesale prices.—For original sources, see BULLETIN for March, 1931 (p. 159).
Retail food prices and cost of living.—United
States—
Bureau of Labor Statistics, Department of Labor; Engtand—Ministry of Labour; Germany—Statistisches Reichsamt; France—for retail food prices,
Statistique G6n6rale, and for cost of living, Commission d'e"tudes relatives au cout de la vie a Paris.
JANUARY,
FEDERAL RESERVE BULLETIN
1932
LAW DEPARTMENT
Deposits of public moneys by the United States which
are exempt from reserve requirements
Under the provisions of the Liberty bond
acts, approved April 24, 1917, September 24,
1917, and April 4, 1918, * "deposits of public
moneys by the United States in designated
depositaries " are exempt from the requirements
of the Federal reserve act as to maintenance
of reserves by member banks. From time to
time questions have arisen as to whether various classes of deposits in member banks may
property be regarded as coming within this
provision of law so as to be exempt from
reserve requirements.
In considering such questions, it is to be noted
that a deposit which is made by, or for the
account of, a Government department, bureau,
or official and is secured by a deposit of United
States bonds is not necessarily for that reason
to be classified as a " deposit of public moneys
by the United States in designated depositaries.77 In order to come within the meaning of
this provision of law, it is necessary that the
deposit (1) be made by, or for the account of,
the United States or some department, bureau,
or official thereof; (2) consist of public moneys
of the United States; and (3) be received by
the depositary bank under authority of a designation of such bank by the Secretary of the
Treasury as a "general depositary/7 "limited
depositary,77 or "special depositary" within the
meaning of those terms as defined by the Secretary of the Treasury. Unless a deposit meets
all of these requirements, it may not be classi1
Sec. 8 of the Third Liberty bond act, approved Apr. 4,1918, provides:
" T h a t the Secretary of the Treasury, in his discretion, is hereby authorized to deposit* in such incorporated banks and trust companies
as he may designate, the proceeds, or any part thereof, arising from the
sale of the bonds and certificates of indebtedness and war-savings certificates authorized by this Act, and arising from the payment of income
and excess profits taxes, and such deposits shall bear such rate or rates
of interest, and shall be secured in such manner, and shall be made
upon and subject to such terms and conditions as the Secretary of the
Treasury may from time to time prescribe: Provided, That the provisions of section fifty-one hundred and ninety-one of the Revised Statutes,
as amended by the Federal Reserve Act, and the amendments thereof,
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, * * *"
65
fied as a deposit which is exempt from the
reserve requirements of the Federal reserve act.
Funds held by the United States merely as custodian, or in trust, for the benefit of others are,
of course, not public moneys of the United
States and so are not exempt from reserve
requirements.
In construing the phrase "deposits of public
moneys by the United States in designated
depositaries/7 the Federal Reserve Board has
ruled that the classes of deposits enumerated
below do not come within the meaning of this
provision and are, therefore, not exempt from
the reserve requirements prescribed by the
Federal reserve act. These rulings have been
made in the light of views expressed by the
Treasury Department in the course of consultations with it.
(1) Deposits of funds of the Philippine
Islands made by the government of the Philippine Islands or by the Bureau of Insular
Affairs of the War Department of the United
States;
(2) Deposits of funds of Porto Rico made by
the government of Porto Rico or by the Bureau
of Insular Affairs of the War Department of
the United States;
(3) Deposits of Indian funds under the control of the Department of the Interior;
(4) Deposits of States, counties, and municipalities;
(5) Deposits of the United States Shipping
Board and deposits of the Emergency Fleet
Corporation;
(6) Deposits of bankruptcy funds under the
jurisdiction of United States courts, representing funds of bankrupts7 estates;
(7) Deposits of moneys paid into United
States courts by private parties pending the
outcome of litigation;
(8) Deposits of the Division of Insolvent
National Banks of the Comptroller of the Currency, representing funds collected by receivers
of suspended national banks;
(9) Deposits of the Inland Waterways Corporation, a Government-owned corporation,
created for the purpose of carrying on the
66
FEDERAL RESERVE BULLETIN
operations of the Government-owned inland,
canal, and coastwise waterways system;
(10) Deposits to the credit of the Alien Property Custodian, comprising an administrative
fund for the payment of salaries and other
expenses of the office of the custodian;
(11) Deposits of the Panama Canal Zone
made by the Secretary of War, representing
money-order funds of the Canal Zone post
office.
In addition, deposits of postal savings funds
may not be classified as coming within the
exemption of " deposits of public moneys by
the United States in designated depositaries,"
because postal savings deposits, by express pro-
JANUARY,
1932
vision of the Federal reserve act, are included
within the term "time deposits," which are
subject to a 3 per cent reserve.
On the other hand, the Federal Reserve
Board has held, after consultation with the
Treasury Department, that deposits made by
United States postmasters of Government funds,
other than postal savings deposits, collected
by them or which have come into their possession by virtue of their official positions,
should be deemed to constitute " deposits of
public moneys by the United States" and,
when made in designated depositaries, such
deposits are exempt from the reserve requirements specified in the Federal reserve act.
67
FEDERAL RESERVE BULLETIN
JANUARY, 1932
DETAILED FEDERAL RESERVE STATISTICS, ETC.
FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES, ALSO F. R. NOTE STATEMENT
[In thousands of dollars]
Dec.3 1,1931
Nov
Dec. 31,1930
30,1931
RESOURCES
Gold with Federal reserve agents
Gold redemption fund with "United States Treasury
Gold held exclusively against Federal reserve notes..
Gold settlement fund with Federal Reserve Board
Gold and gold certificates held by banks
___
1, 730,430
2,130,122
55,616
1,734, 676
2,185,738
314,090
489,064
1 804, 758
360, 547
747,166
417,440
758,129
2, 988, 892
168, 770
2,918,471
2,941,219
161,855
140,298
3,157, 062
72, 612
3,080,326
62,889
3,081,517
626,779
11, 044
470
706, 457
11,320
488
250, 550
737
71
638, 293
718,265
251, 3S8
257, 049
81, 038
445,507
6, 205
324,746
39,098
338, 687
451, 712
363, 844
771,931
45, 029
717,031
686,004
43,403
816, 960
717,031
729,467
26,185
500
4, 463
8, 662
19,652
25, 330
500
4,397
8,724
4,939
6,300
Total reserve bank credit outstanding..
1,853, 402
1,930,898
Federal reserve notes of other reserve banks..
Uncollected items not included in float
Bank premises
_
All other resources
20,055
478, 229
57, 668
32,697
15,182
3S0,861
59,475
41,055
Total gold reserves
Reserves other than gold
Total reserves..
Nonreserve cash
Bills discounted:
For member banks
__
_
_
For intermediate credit banks.__
_.
For nonmember banks (secured by adjusted-service certificates).
Total bills discounted.._
__
Bills bought:
Outright i
Under resale agreement
Total bills bought.
United States securities:
Bought outright
Under resale agreement.
Total United States securitiesOther reserve bank credit:
Federal intermediate credit bank debentures..
Federal land bank bonds
_.
Municipal warrants
Due from foreign banks
___
Reserve bank float 2
Total resources..
Federal reserve notes:
Held by other Federal reserve banks.
Outside Federal reserve banks
Total notes in circulation
70,0S2
35,211
1, 765,650
79,P32
843
704
20,776
1,373, 332
21,993
564,007
57,843
22,024
5, 672, 325
5,580, 686
5, 200, 648
20,055
2,604,416 I
15,182
2,464,518
21,993
1,641,545
2, 624, 471
2,479,700 ;
1,663,538
i
Deposits:
Member bank—reserve account.
Government
Foreign bank
Other deposits
__
1,961,410
53,637
79,099
30, 728
2,050,596
31,765 i
142,665 !
27,437 |
• 2, 470,583
18,819
5, 761
21,970
Total deposits
Deferred availability items..
Capital paid in..
Surplus
All other liabilities
2,124,874
478, 229
160, 568
259, 421
24, 762
2,252,463 i
390,861 :
103,593 !
274,636 '
19,433 ]
2, 517,133
564,007
169,640
274,636
11,694
Total liabilities
_
Contingent liability on bills purchased for foreign correspondents
FEDERAL RESERVE NOTE STATEMENT
Federal reserve notes:
Issued to Federal reserve banks by Federal reserve agents
Held by Federal reserve banks *
5, 672, 325
250, 621
5,580,686 |
126,389 !
5, 200, 648
439,288
2, 926, 038
301, 567
2,773,021 !
293,321 !
2,093, 625
430, 037
2,624, 471
2,479,700 '
1,663, 538
2,130,122
915,125
1,734,676
1,107,313
1, 730, 439
507, 788
3, 045,247
2,841,989
2,238,227
In actual circulation
_..
Collateral held by agents as security for notes issued to banks:
Gold
Eligible paper
_
Total collateral..
;
1 Includes bills payable in foreign currencies as follows: Latest month, $33,429,000; month ago, $33,386,000, year ago, $35,983,000.
2 Uncollected items in excess of deferred availability items.
Excludes "Federal reserve notes of other Federal reserve banks" which are consequently included in actual circulation.
1
68
FEDERAL RESERVE
BULLETIN
JANUARY, 1932
EACH FEDERAL RESERVE BANK—RESOURCES AND LIABILITIES, ALSO FEDERAL RESERVE NOTE
STATEMENT, DECEMBER 31, 1931
[In thousands of dollars]
Total
Boston
New
York
2,130,122
147,627
450,337 180,000 252,470
55,616
4,744
Philadelphia
Cleveland
Rich-
mond Atlanta
Chicago
St. Minne- Kansas j
Louis apolis City ! Dallas
San
Francisco
RESOURCES
Gold with Federal reserve
agents
Gold redemption fund with
U. S. Treasury
11, 543
7,190
78,870
2,018
7,480
91,800 483, 620
2,725
9,627
64,885
58,470
2,382
704
40,700 j 214,663
j
809 I
3,126 i
3,268
I
Gold held exclusively
against Federal reserve
notes
2,185,738 152,371 ! 461,880 187,190 259,950
Gold settlement fund with
Federal Reserve Board
314,090
40,282 |
81,380 14,282 42,229
Gold and gold certificates held
by banks
489,064
20,791 | 300,478 26, 232 22,810
80,888
94,525 493,247
41,509 I 217,931
67,267 ! 59,174
I
7,813
7,416
50,484
9,600 j
9,367
15, 738
8,881 I 26,618
5,059
7,620
52,862
12,086 j
5,735
12,227
3,639 ; 18,925
Total gold reserves.
Reserves other than gold.
2,988, 892
168,770
213,444
17,355
843, 738 227,704 324,989 i 94. 360 109, 561 596,593 j 88,953 j 74,276
37, 739 15,237 j 13,087 j 7; 095 6,061 29,277 I 12,863 ! 5,632
Total reserves.
Nonreserve cash
3,157,662
72, 612
230,799
7,803
881,477
19,235
Bills discounted:
Secured by U. S. Government obligations
Other bills discounted
66,6S0
97,771 i 54,029 I 263,474
7,665 '• 7,946 |
8,813
242,941 ^338,076 101,455 115, 622 625,870 1101,816 79,908 105.436
4,368 10,859
3,656 ! 4,859 3,743
3,773 ' 1,731 j 2,653
61,975 i 272,287
3,532 :
6,395
48,496
44,113
6, 824
26,553
3,799 ! 50,272 ] 10,190 [ 1,074
31,103 ; 24,224 | 6,606
6,497
4,568 i
543 ; 10,845
23,158 ! 9, 873 ' 19,897
Total bills discounted.. _ 638, 293
Bills bought
338, 687
43,205 i 149,951 116,412 : 92,609
33,431 | 163,393 4,065 ! 5,561
33, 377
10, 099
34,902 i 74,496 j 16,886
7,571
13,235 ! 42,052 | 12,823 7,329
27,726 10,416 , 30,742
11,666 . 3,019 I 32,014
17. S. Government securities:
Bonds._.
Treasury notes
Certificates and bills
360, 368
33,040
423, 552
27,940 114,688 33, 749 i 31, 349
1,958
18,306 1,761 i 2,320
31,104 I 176,362 33,142 : 39,582
7,810
562
10, 709
~r
i
6,521 '• 53,354 | 11,393 15,832
380 i 2,901 I
783
589
7,037 ! 49,276 14.923 11,247
7,685 ! 17,995 | 32,052
548 ! 536 I 2,396
10,475 i 11,333 I 28,362
Total U. S. Government securities
_
Other securities
816,960 ! 61,002 l 309,356
31,148
2,130 ! 14,315
320,876
317,417
23,493
112,477
19,712 j 37,474
48,295
68,117
68,652 I 73,251
5,610
Total bills and securities.!l, 825,088 |139,768 | 637,015 194,739 171,421
Due from foreign banks
\
8,662
3,173
685 ,
904 i 875
Federal reserve notes of other;
banks
j 20,055
234 j
6,084
624 I 1,489 !
Uncollectcd items
497,881 58,575 ! 164.867 43,558 ' 41,319
Bank premises
_
57,668
3,336 i 14,816
2,626 I 7,807
All other resources
i 32,697
2,048 I 11,242
1,397 i 3,158
Total resources
j5,672,325
13,938 1105,531 27,099
850 ! 3,490 j
880
27,668
903
18, 70S ! 29,864 62,810
1,870
400 i
63, 257 62,925 !225, 569 j 57, 688
312 ! 1,232 j
21
346
43,471
14
58,500 i 43,299 I 127,436
251
2G0 i
589
1, 230 ; 3,105 I 1,270
1,885
37, 228 11,839 I 53,531 18,088
2,489
i 7.827
3, 605
3,461
3,111 i 1,297
1,995
2,832
810
8,444
1,834
1,373
I 19,081
700
1,482 ; 397 ! 1,445
21,391 :1 13,404 ! 25,637
3,649 1,785 ! 4,433
1.054 ! 2,302 j 888
443,253 jl, 737, 909 490,445 1569,004 214,351 201.896 ,929,290 1188,112 137,585 |194,416 126,954 | 439,110
LIABILITIES
Federal reserve notes in actual
circulation
'2,624,471 I 194,460 ! 574,186 269,372 |320,335 109,347 120,626 519,471
Deposits:
Member bank—reserve account
_
1,961,410 149,287
795, 015 123, 939 147, 646 47, 256 46, 368 283,976
Government
_
53,637
3,291
2,538
1,642
2,047
25,740
3,551
3, 526
Foreign bank.._
_
79,099
5,764
3, 074
2, 767 10, 376
27, 527
7,609
7, 763
Other deposits
30,728
598 j
172
691
13, 786
240
6,167
391
16, 941
19,130
59,456
3,128
2,690
566
45,827
1,961
1,768
356
Total deposits
2,124,874
Deferred availability items
478, 229
apital paid in
_
_._ 160,568
Surplus
259,421
All other liabilities
24, 762
65,840
19,305
4,693
10,025
1,308
49,912 I 79,028 I 52,872 154, 475
7, 791 ' 19, 674 1 13, 22322, 448
2,951 j 4,185 !'• 4,135 11,339
17, 707
6,356 i 8,124 7,624
2,062
1,445 ! 694 I 2,287
Total liabilities
Reserve ratio (per cent).
157,829
57,993
11,749
20,039
1,183
862, 068 135, 490 165,102
158,126 41,826 39,425
61,639 16, 600 14,630
75, 077 26,486 27, 640
671
1,872
6,813
52, 570
34, 532
5,478
11,483
941
51,354 j 298, 334
12,001 51,885
5,158 18,011
10,449 i 38,411
2,308
3,178
5, 672, 325 443,253 1,737,909 490,445 569,004 214,351 1201,896 j929, 290
62.7 ! 67.2 76.5
61.4
66.5
65.5
60.0
69.6
82,711 i 46,813 j 231,079
I 75,229
i 1,510
! 2,229
!
60
!
i
j
i
48,811 138, 600
1,509 3,194
2,306
5,226
246
7,455
188,112 137,585 194,416 1126,954
67.1 ! 65. 2 I 62. 2
66.6
439,110
70.6
FEDERAL RESERVE NOTE STATEMENT
Federal reserve notes:
Issued to F . R. bank by
F. R. agent
2,926,038 < 220,491
Held by F . R. bank
_ 301,567 ! 26,031
In actual circulation
2,624,471 194,460
Collateral held by agent as
security for notes issued to
banks:
Gold
2,130,122 147,627
Eligible paper
915,125
74,101
636,132 295, 067 346, 950
61, 946 25,695 26,615
117,879 138,563 587,100 91, 301
8, 532 17, 937 67, 629 4,360
71, 288
2,158
93, 900
11,189
52, 654
5, 841
274, 713
43, 634
574,186 269, 372 320, 335
109,347 |l20,626 519,471
69,130 I 82,711
46,813
231,079
58,470
13,341
40, 700
12, 234
214,663
60, 093
450,337 180,000 252,470
279,682 116,949 94, 770
I
86, 941
78,870 91,800 483, 620 64,885
41, 014 46,823 111, 564 27,287
66, 6S0
37,267
FEDERAL
69
FEDERAL RESERVE BULLETIN
JANUARY, 1932
RESERVE
BANKS—RESERVES, DEPOSITS, NOTE
PERCENTAGES
CIRCULATION,
AND
RESERVE
[Averages of daily figures. Amounts in thousands of dollars]
Total cash reserves
Federal reserve bank
1931
December
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City—
Dallas
San Francisco
1930
1931
December
November
December
187,446
167,494
215,525
1,010, 289 1,033,957 1,077,864
260, 668 270, 785 230, 803
326, 745 304,063 298,309
86,528
109,376
90, 890
83,622
143,088
95,888
593,416 575,027 385, 942
94,266
83,550 117,949
75,497
65, 293
71,229
98,127
77, 972 103, 834
56,319
53,908
55, 654
241,962 213, 459
278, 895
Total. -.
Federal reserve notes in circulation *
Total deposits
1930
December
December
149,463 146,405
980,075 1,053,848
145, 218 143,011
175,543 191,468
64,408
63,326
56,815
59,901
312, 647 347,418
72,412
71,976
51, 236
51, 672
80,172
86, 556
56, 546
58, 935
178,339 192, 956
175,457
544,106
275, 787
320, 610
102,043
121,652
511,934
86,929
November
139,968
953,477
138, 976
170, 248
60,813
54,710
303, 648
69, 514
49, 505
78, 634
54, 233
167, 590
1931
Reserve percentages
1930
1931
1930
Novem- I Decem- Decem- Novem-JDecember
ber
ber
ber
ber
133,474
341,708
137,979
195,927
97, 219
129,087
141,136
84, 571
51,448
69,097
32,697
172,707
59.4
67.5
62.8
68.6
55.8
54.4
72.8
60.3
64.1
60.8
54.8
61.5
56.3
70.0
64.6
62.3
52.6
47.1
71.4
52.8
56.5
48.6
50.2
52.7
77.0
77.2
82.1
77.0
68.1
75.7
79.0
75.3
69.1
66.7
60.7
76.3
3,131,513 J3, 015, 658 J3, 088,4682,241,316 2,322, 874 2,467,472 2,563,837 2,453,400 1,587,050
65.2
63.1
76.2
68,214
82, 798
48,597
225,710
148,293
496,742
273,966
312,781
100,062
120, 708
492,958
85, 958
64,256
80,381
50,922
226,373
i Includes "Federal reserve notes of other Federal reserve b a n k s " as follows: Latest month, $16,746,000; month ago, $17,370,000;r year ago
$16,870,000.
r
Revised.
ALL MEMBER BANKS—DEPOSITS, RESERVES, ETC., BY DISTRICTS
[Averages of daily figures for 3 months ending November 30, 1931. In millions of dollars]
Deposits subject to reserve (net demand and
time deposits; see following page)
Federal reserve district
Boston
New York..
PhiladelphiaCleveland
Richmond
Atlanta
._
Chicago
St. L o u i s . . . .
Minneapolis
Kansas City...
Dallas
San Francisco
2,261
\ 10,146 j
2,351
.._.
2,997
1,048
853 I
I 4,181
1,032
819
1,085
725
3,003
._
Total
2,210
,853
2,206
2,690
823
3,934
998
798
1,049
690
2,894
__| 30,500; 29,138
Indebtedness at Federal
reserve banks
2,160
142.7
9, 459 1, 015. 8
2,137
139.8
2,565
178.6
59.2
965
53.6
795
3,822
327.9
65.9
965
47.6
789
79 6
1,012
52.4
688
169.
7
2. S61
28,218
2,332.7
154.3
996.1
131.5
159.9
57.9
51.4
306.0
64.7
46.4
76.
53.4
157.2
135.8
915.7
128.2
150.3
55.6
49.4
289.0
64.
45.
74.1
50.2
159. 5
2,255.6
2,118.1
25.8
6.4
32.1
22.9
86.4
120.3
57.0
279. 6 i
60S. 1
DISCOUNTS—DISTRICT DATA, BY WEEKS
DISCOUNTS—DISTRICT DATA, BY MONTHS
[In thousands of dollars]
[Averages of daily figures. In millions of dollars]
1931
1931
Federal reserve bank
Boston
New Y o r k . . . .
Philadelphia
Cleveland .
Richmond
Atlanta
Chicago
St. Louis
Minneapolis—.
Kansas City.._
Dallas
San Francisco.
Total.
1930
Federal reserve bank
Dec. 2
Dec. 9 \ Dec. 16 Dec. 23 Dec. 30
32,995
121,804
102,916
9,441
39,748
29,312 43,495 67,415
137,258 117,731 236,396
104,703 117,628 137,825
106,529 111, 897 127,581
36,266 35,977 46,812
54,081 53,660 47,486
89,499 77,960 98,676
26,863 26,879 29,048
8,092
7,882
7,859
28,331 30,469 29,698
20,951
18,004 15,822
83, 297 56, 349 66,553
December
November
December
56, 733
431,827
115,575
114,862
41, 447
45, 275
95, 309
21, 742
7,554
29,286
11, 407
52, 866
Boston
New York
Philadelphia _
Cleveland
Richmond
Atlanta
Chicago
St. Louis
MinneapolisKansas C i t y Dallas.
San Francisco
47.5
167.7
117.5
110.6
39.5
51.6
86.6
26.8
8.0
30.3
17.6
70.9
26.0
120.5
108.3
98.9
40.5
51.0
69.9
25.9
7.4
33.8
23.0
17.3
90.3
27.5
37.9
33.1
30.4
26.4
14.2
3.9
16.0
6.9
33.7
717,567 725,182 ! 697,908 911,194 1,023,883
Total...
774.5
695.1
337.6
85,913
26,534
8,239
29,932
21,072
90,875
70
FEDERAL RESERYE BULLETIN
JANUAKY, 1932
NET DEMAND AND TIME DEPOSITS OF ALL MEMBER BANKS, BY DISTRICTS
[Averages of daily figures. In millions of dollars]
Total (all member banks)
Net demand
Federal reserve district
Larger centers (places over 15,000)
Net demand
Time
Smaller centers (places under 15,000)
Time
Net demand
Time
NovemNovemNovemNovemNovem- October Novem- ;
October
October! ber
October
October
ber
ber
ber I October
ber
ber
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis. ._
Kansas City...
Dallas
San Francisco.
1,175
467
419
2,089
520
369
652
484
1,138
1,228
7,033
1,081
1,239
480
436
2,143
535
371
679
487
1,146
959
2,680
1,071
1,390
498
376
1,733
445
420
361
204
1,723
982
2,821
1,125
1,451
513
387
1,791
462
427
370
203
1,748
1,101
6,526
896
1,023
371
347
1,905
420
240
445
328
1,005
1,125
6,767
906
1,070
381
368
1,952
429
241
470
331
1,011
16,358
16,859
11,860
12,279 |
14,608
15,048
1,201
6,780
1,065
Total
803
2,127
645
1,107
317
297
1,437
334
199
228
170
1, 594
|
!
I
|
!
!
824
2,258
688
1,152
328
310
1,486
345
201
233
168
1,618
100
253
169
152
96
72
184
100
129
206
156
133
103
266
175
169
99
69
191
107
130
210
157
135
9,258 i
9,609
1,751
1,811
156
553
427
283 i
181 .
79 !
297 i
111 :
221 :
132 !
34 i
129
2,602 ;
158
56a
437
300
185
77
305
117
226
137
34
131
2,670
RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES
Prime commercial paper
Federal reserve
bank or branch
city
1931
December
Loans secured by prime stock- Loans secured by warehouse
exchange collateral
receipts
1930
Novem- ! Decem- i Eecem
ber
I ber
ber
1931
1930
Novem- : December
i ber
1931
Decem- j November
i ber
1930
Interbank loans
1930
1931
Decem- j December
j ber
November
December
Boston
New York
Buffalo..
Philadelphia
Cleveland
Cincinnati
Pittsburgh
Richmond
Baltimore
Charlotte
Atlanta
Birmingham
Jacksonville
Nashville
New Orleans
Chicago
Detroit
St. Louis
Little Rock
Louisville..
i
Minneapolis
Helena
Kansas City
_.J
Denver
!
Oklahoma City
Omaha
j
Dallas..
El Paso
i
Houston...
_._i
San Antonio
;
San Francisco
Los Angeles
i
Portland.j
Salt Lake City
j
Seattle
,
Spokane..
•
NOTE.—Rates at which the bulk of the loans of each class were made by representative banks during the week ending 15th of month.
from about 200 banks with loans exceeding $8,000,000,000; reporting banks are usually the largest banks in their respective cities.
Rates
71
FEDEKAL EESERVE BULLETIN
JANUARY, 1932
WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES
PRINCIPAL RESOURCES AND LIABILITIES, BY WEEKS
[In millions of dollars]
City
Federal Reserve District
1931
Loans and investments:
Dec. 2
Dec. 9
Dec. 16
Dec. 23
Dec. 30
Loans:
Dec. 2 . .
Dec. 9
Dec. 16
Dec. 23
Dec. 30
On securitiesDec. 2
Dec. 9
Dec. 16
Dec. 23
Dec. 30—
All o t h e r Dec. 2
Dec. 9
Dec. 16
Dec. 23
Dec. 30
Investments:
Dec. 2
Dec. 9
St. Minne- Kansas
Louis apolis City
20,856
20,664
20,963
20,734
20,532
.._.
-..
I
Dec»2-
____••
1,224 2,037
619
1,217 2,030 I 615
1,240 2,057 I 624
1,220 2,046 | 623
1,205 2,017 j 603
2,879
2,854
2,843
2,813
2,796
614
613
615
607
593
353
353
350
360
358
600
382
378
380
378
371
367
366
365
361
2,060
2,032
2,011
1,984
1,972
394
392
391
388
376
591
594
427 1,862
423 1,859
446 1,877
430 1,854
420 1,844
7,181
7,064
7,258
7,175
7,147
1,657
1,632
1,625
1,597
1,584
227
227
224
228
225
334
332
331
326
326
290
290
285
280
275
1,123
1,118
1,116
1,111
1,115
4,488
4,425
4,451
4,420
4,492
1,158
1,132
1,112
1,084
1,076
744
739
732
726
728
1,302
1,301
1,297
1,295
1,283
5,807
5,760
' 5, 740
5,733
5,777
335 2,561
341 | 2,532
2,534
353 2,554
342 ! 2,615
376
375
371
376
585
584
578
578
144
144
144
144
140
115
112
115
114
112
1,000
990
975
951
947
155
153
'155
147
145
61
63
59
60
60
92
93
92
90
82
81
79
81
81
295
290
290
290
292
2,239
2,210
2,208
2,231
2,295
686
675
661
637
633
7,543
7,477
7,472
7,386
7,327
573
567
561
541
520
j
!
i
!
|
363
363
357
355
352
716
716
713
717
705
234
236
234
229
256
255
251
251
249
1,060
1,042
1,036
1,033
1,025
239
239
'236
241
231
166
164
165
168
165
242
239
239
236
237
209
206
199
194
828
828
826
821
823
2,249
2,215
2,243
2,189
2,197 |
472
457
451
447
7,506
7,427
7,751
7,615
7, 428
473
455
456
443
429
i 3,097
J 3,043
i 3,217
| 3,161
j 3,056
480 j 735
478
729
508
760
494
751
734
477
237
237
244
245
234
177
176
195
183
182
819
822
832
829
824
220
221
224
219
217
126
126
126
132
133
266
266
267
265
268
137
133
161
150
145
739
741
761
743
729
2,693 I
2,639 I
2,807 !
2, 755 i
2,655
499
500
513
513
508
4,033
3,997
4,336
4,208
4,060
232
213
213
210
197
1,829
1,810
1,993
1,932
1,862
188
187
219
205
190
387
385
418
406
386
115
115
121
120
113
85
104
93
91
458
461
472
471
465
90
91
94
92
95
53
53
54
54
132
132
134
135
136
74
73
100
89
84
392
414
401
1,676
1,657
1,836 |
1,778 !
1,712 j
285
286
300
301
293
3,473 I
3,430 !
3,415 i
3,407 j
3,368
241
242
243
233
232
1,268
1,233
1,224
1,229
1,194
292
291
122
122
123
125
121
361
91 ! 361
91 | 360
90 j 358
359
91
130
130
130
127
122
73
287
348
344
342
345
348
73
72
78
78
134
134
133
130
132
63
60
61
61
61
350
349
347
342
343
1,017
982
971
977
943
214
214
213
212
215
1,567
87 j 765
773
87
849
83
755
84
994
112
77
77
77
72
73
114
113
111
112
115
37
35
36
35
224
233
246
212
229
40
45
42
43
48
24
24
23
22
25
46
45
50
44
46
15
17
16
17
16
31
34
35
37
35
7
7
5
5
5
13
14
13
14
14
798 5,829
773 | 5,771
764 5,866
749 5,650
743 5,715
693
689
687
654
600
894
886
895
879
'885
312
311
302
297
293
468 1,358
468 1,310
464 1,287
447 1,260
430 1,249
283
273
274
277
892
891
880
877
'864
233
232
232
229
227
209
209
207
206
206
20
1
279
176
176
10
1
37
24
24
1
24
15
15
105
85
109
92
112
81
79
73
66
71
53
50
58
48
54
16
17
24
26
23
3
10
2,654
2,621
2,646
2,590
2,597
61
67
67
85
75
;
I
|
|
'
548
543
561
548
543
5,215
5,153
5,180
894 I 5,144
862 i 5,212
Dec* 9
__! 1,691
Dec. 16
1,667
:
1,526
Dec. 23__
:
1,833
Dec. 30
Cash in vault:
236
Pec. 2
'
248
Dec»9
.!
259
Dec* 16
i
292
Dec* 23
—
271
Dec. 3 0 . . ,
Net demand deposits:
•
Dec» 2
! 12,199
Dec, 9
I 12,105
Dec, 16
I 12,168
Dec* 2 3 . . . .
! 11,771
:
Dec. 30
< 11,877
Time deposits:
i
Dec. 2._
i 6,142
6,073
Dec*9.__
Dec, 16
. 6,004
Dec* 23
_-_.
i 5,947
Dec. 30
i ' 5,898
Government deposits:
i!
57
Dec* 2 . .
5
Dec. 9
i
Dec* 16
! ••553
Dec. 23
'352
Dec. 30
'
352
Due from banks:
Dec*2
928
Dec* 9
-._.
1,012
Dec* 16
Dec* 23
939
993
Dec. 30
' Revised*
8,312
8,196
8,397
8,305
13,350
13,237
13, 212
13,119
13,104
!'
.1
!
I
i
Dec. 16
'
Dec. 23
:
Dee. 30
I
United States Government j
securities—
Dec. 2__
_
i
Dec. 9 . . . .
i
Dec. 16
!
;
Dec. 23
Dec. 30
i
All other—
j
Dec*2
_
Dec, 9
!
Dec* 16...
'
Dec* 23.-_-j
Dec. 30
Reserves with Federal reserve j
bank:
1,381
1,363
1,355
1,337
1,291
Chicago
35 j
15
15 !
15 ;
16 I
16
'
i
,
;
!
32
32
31
31
37 |
7
44
9 ! 45
7
Q
o
8
55
255
255
251
248
245
1,069
1,063
1,056
1,040
1,032
218
210
208
208
206
143
145
145
156
156
190
189
187
186
185
135
135
135
134
133
4
1
'22
'18
18
Ml
25
25
8
5
5
2
1
1
54
48
51
51
51
192
186
207
201
207
40
39
41
42
40
51
51
54
51
1,576
1,567
1,567
1,502
1,527
!
i
i
I
i
47
51
52
68
58
659
660
654
635
640
i
|
|
|
|
5,335
5,290
5,376
5,162
5,217
87 |
392
388
393
382
390
i
I
|
i
I
18
18
18
21
20
96 i
335
348
342
335
336
257
258
255
250
252
42
92 I
157
710
164
722
... . 178
705 i 146
154
941
91 I
0
5
199
199
192
190
191
9 j
878
831
810
789
933 j 779
938
4!
2
50
!
56 I
35 i
35 I
99
104
97
102
!
I
|
i
i
443
116
114
121
113
115
18
l
264
166
166
14
15
21
21
19
1,089
1,082
1,084
1,019
1,034
436
431
427
420
417
26
16
16
115
116
125
130
133
72
FEDERAL RESERVE BULLETIN
JANUARY,
1932
WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES—Continued
P R I N C I P A L R E S O U R C E S A N D L I A B I L I T I E S BY W E E K S — C o n t i n u e d
[In millions of dollars]
Federal Reserve District
Total
1931
Due to banks:
Dec. 2
Dec 9
D e c . 16
D e c 23
Dec 30
Borrowings from Federal reserve
banks:
Dec*
Dec
Dec.
Dec
2
9
16
23
Chicago
San New
St. Minne- Kansas Dallas Fran- York
Louis apolis City
cisco
2,513
2,387
2,540
2,385
2,472
127
113
110
105
124
945
880
985
921
963
167
154
155
138
141
186
183
186
178
180
92
85
85
76
76
74
74
72
75
76
361
346
390
354
373
85
84
83
81
80
424
428
392
567
685
10
9
15
30
22
54
68
47
149
334
56
56
65
79
61
71
79
86
102
91
20
17
17
27
21
37
32
31
25
25
56
57
48
64
64
11
11
11
13
7
_
Dec. 30
New PhilaCleve- Rich- AtdelYork phia
land mond lanta
Boston
- -
City
69
68
69
66
69
Chicago
149
148
152
147
138
80
77
79
74
76
178
175
174
170
176
880
819
923
864
900
249
238
283
248
265
17
16
17
16
16
11
10
81
73
47
56
41
14
12
10
9
8
21
9
6
3
98
289
MEMBERSHIP IN PAR-COLLECTION SYSTEM BANK LOANS AND INVESTMENTS, PERCENTAGE DISTRIBUTION
[Number of banks at end of November]
United States.~
Boston
New York
Philadelphia
Cleveland
RichmondAtlanta
Chicago
St Louis
Minneapolis
Kansas C i t y
Dallas
San Francisco
-.
On par list
1931
1930
7,358
383
859
718
664
416
352
922
474
583
830
622
535
[Figures for September 29,1931—latest date for which comprehensive data
are available]
Nonmember banks
Member banks
Federal reserve district
Not on par list
1931
1930
1931
8,159
9,431
11,129
3,261
397
917
754
770
481
404
1,099
528
653
874
698
584
252
362
370
808
447
152
2,667
1,278
395
1,662
475
563
263
402
455
939
542
196
3,243
1,443
507
1,942
578
619
3,532
6
403
798
250
418
888
215
225
58
9
480
881
239
445
1,014
189
215
60
MATURITY DISTRIBUTION OF BILLS, ETC.
[In thousands of dollars]
si
\
21,301 j
53,361
100
I
7,599 !
33,073
62
Reserve city b a n k s (62 cities)..
Central reserve city b a n k s N e w York C i t y
Chicago
Other reserve city b a n k s N e w York C i t y
i
Chicago
I
Other Federal reserve b a n k cities I
(10 c i t i e s ) . . .
i
Federal reserve branch cities (25 j
cities)
_
j
Other reserve cities (25 cities)
" C o u n t r y " banks2.
Nonmember banks
1
420 j
21,269
40
42 !
12 !
8,253
1,644
15
3
25 I
32
83
All b a n k s in t h e United States 1
M e m b e r banks—total..
101 :
139
92
7,179
13,702
i
!
,
!
5,626
4,392
1,238
11,805
20,288
8
2
22
38
>9
Bills discounted:
717,567 544,465 52, 002 65, 621 35,426 18,490 1,563
Dec. 2
725,182 561,477 49,926 58,284 35,641 18,176 1,678
Dec. 9
697,908 540, 325 46,201 49,605 43, 552 16,467 1,758
Dec. 16
911,194 750,539 41. 291 54,161 46,046 17,285 1,872
Dec. 23
1,023,833 851,308 39,895 61,106 51,407 18,156 2,011
Dec. 30
Bills bought in
open market:
423,407 171,720 139,182 100,635 11.331
539
Dec. 2
678
"" 219 186,126 126, 242 56,204 19,969
389,
Dec. 9
706
307,077 159; 861 87,580 29,226 29,704
Dec. 16
722
257,351 146,004 56,051 30,306 24,268
Dec. 23
759
Dec. 30
326,975 192,124 64,096 50,940 19, 056
Certificates and
bills:
380, 587 53,224 13,152 22,950
65,515
Dec. 2
379, 557 52,443 13,152 23, 950 112; 704 111,
,793 65,515
Dec. 9
51,175:135,
773
2,000
43,500jl24,298
567,398
210i
652
Dec. 16
411,509 13,152 2,000 68,2871117,662 80,500129,908
Dec. 23
427,759 28,500 20,950 77,816 86,139 86,553'127,801
Dec. 30
Municipal warrants:
258
4,302
3,075
Dec. 2
299
4,292
515 3,380
Dec. 9
151
4,072 3,658
181
Dec. 16
109
4,259 3,811
244
Dec. 23
84
4,445 4,042
221
Dec. 30
j Number
! of b a n k s A m o u n t Percentj (millions age dis:of dollars) tribution
Figures cover all incorporated banks (other than mutual saving
banks).
35 s% - 3
Total loans and
investments
1930
1 Includes national banks, State commercial banks and trust companies, mutual and stock savings banks, and all private banks under
State
supervision.
1
Includes certain outlying banks in reserve cities.
BANKERS' ACCEPTANCES OUTSTANDING,
BY CLASSES
[Dollar acceptancesj In millions of dollars* Source: American
Acceptance Council]
N o v . 30, Oct. 31, N o v . 30,
1931
1931
1930
Based on imports
_
Based on exports
Domestic
Warehouse credits
Dollar exchange
._
Based on goods stored in or shipped between
foreign countries
Total outstanding
159
255
19
239
35
173
261
24
214
243
422
34
274
56
298
330
544
1,002
1,040
1,571
Back figures.—See Annual Report for 1930 (Table 61).
73
FEDERAL RESERVE BULLETIN
JANTJAEY, 1932
BANK SUSPENSIONS, BY DISTRICTS
as of the latest available call date preceding suspension]
[Figures for latest month are preliminary]
Banks reopened
Banks suspended
Members
Nonmem- All banks
National State
State bers
1
Members
All
banks
January-December, 1931:
Boston
_..
New York
Philadelphia- . Cleveland
Richmond
Atlanta
_ _
Chicago
- St Louis
Minneapolis
. .
Kansas City
Dallas
San Francisco
Total
December, 1931:
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis . .
Minneapolis
Kansas City
Dallas
-.
San Francisco
National
33
80
101
182
203
135
630
264 ;
271 i
222
93
76
2,290
;
6
1
10
7
16
7
5
32
10
1
34
23
47
46
25
71
35
46
21
33
23
4io i
9
10
26
36
71
119
150
105
527
219
224
201
51
43
108
1,772
125,956
44,451
160,664
46,447
157, 971
18, 284
407, 325
121, 517
122,479
42, 247
54,020
22,660
444, 774
90,826
71,419
22,438
60,2<*8 i 12,413
9,343
52,004 |
23,817
53, 276
49,348
18,963
1,759,484
473,406
Nonmembers
12, 745
10, 338
77, 745
57, 380
128, 933
191, 208
74,448
29, 543
252,992
44, 306
47, 339
42,661
16, 714
20,047
302,762
983, 316
3,760
56,837
10, 754
94,600
5,784
1,817
100,956
4,675
496
Deposits (in thousands
of dollars)
Number
Deposits (in thousands of dollars)
Number
NonMem-1 memAll
bers
bers b a n k s
All
banks
2!
3
1
4
56
13
36
99
25
\l
j
1
31
240 157,936
4
2
1
12
3
4
52
11
35
87
22
17
5
Q
.
1
271
2
1
5,206
24,423
239
1,715
23, 592
11,338
26,815
45, 593
7,460
4,432
7,006
117
2
1
Members *
21,740
239
6,044
5,481
7,502
10,114
1,542
Nonmembers
5,206
2,683
1,715
17, 548
5,857
19, 313
35,479
5,918
1,535
117
5,471
54, 314
103,622
i
1
1
26
28
8 ;
17 1
38
13
93 j!
54
19
30
6
21 ;
6 I
11 i
i i
;
ii !
8
•
41
8
4
2
il 3
.
l
2
1 !
1
2
;
!
1:
4
19
15
6
12
25
12
81
46
16
26
4
9
i
I
•
j
109, 403 ] 44,451
40, 266
10,946
269
8,866
22,956 !
2,879
31,224
16,145
7,724
101
52,469
11,394
4,747
14,855
709
4,392
1,539
6,447
568
1,166
19,521
6,306
61,192 t
3,760
23, 738
5,582
6,446
2,151
19, 970
107
14, 247
832
7,623
29, 941
11,134
8,585
1,523
3,683
j 4,908
32 !
566
5,383
7,832
4
5
3
5
2
1
;
1
!
X
1
4
1
5
2
4
5
2
419
4,300
2,194
4,296
975
1,565
1,159
3,336
117
537
273
419
4,300
2,194
4,296
438
1,292
1,159
3,336
117
1 319,289 100, 054 32, 953 186,282
24 18,361
27
17,434
927
i
1
1
Represents national banks only, except as follows: January-December, 1 State member in New York district with deposits of $18,801,000;
1 State member in Richmond district with deposits of $2,152,000; 3 State members in St. Louis district with deposits of $6,313,000; and 1 State
member in Minneapolis district with deposits of $496,000.
Back figures.—For district figures back to 1921 see BULLETIN for February, 1931; also Annual Reports for 1930 (Table 117), 1929 (Table 111)
1928 (Table 115), 1927 (Table 111), and 1926 (Table 98).
Total
353 \
64
:
18 i
271
74
FEDERAL RESERVE BULLETIN
JANUARY, 1932
BANK SUSPENSIONS, BY STATES, DURING DECEMBER, 1931
[Banks closed to public on account offinancialdifficulties by order of supervisory authorities or directors of the bank. Figures of suspensions during
month include any banks which may have subsequently reopened. Figures of banks reopened during month include reopenings both of banks
closed during month and of banks closed in prior periods. Deposits are as of date of suspension where available, otherwise as of latest available
call date preceding suspension]
[Figures are preliminary]
Banks reopened
Banks suspended
Number
Deposits (in thousands of dollars)
Members
Members
Deposits (in thousands
of dollars)
Number
State
All
banks
NonAll
memNa- State bers banks
tional
NonAll Mem- Non- All ^ I e m - memNonmembers banks bers i membanks D e r s i bers
bers
National State
i
New England:
MaineHampshire
New
Vermont
- -Massachusetts
Rhode Island
Middle
Atlantic:
C onnect
icut
New York
.
New Jersev
Pennsvlvania
^ast North Central:
* Ohio
Indiana •
Illinois
Michigan
Wisconsin
-West North Central:
Minnesota
Iowa
Missouri
North Dakota
South Dakota
Nebraska
Kansas
South Atlantic:
Delaware
M aryland
District of Columbia
Virginia
West Virginia
North Carolina
South Carolina
Georgia
-Florida
East South Central:
Kentucky _.
__ _ _ _
Tennessee
Alabama
MississipDi
West South Central:
Arkansas
__
Louisiana
Oklahoma
Texas
Mountain:
Montana
Idaho __ __
Wyoming
Colorado __
New Mexico
Arizona
_.
Utah
Nevada
PacificWashington
Oregon
California
Total
1
1
2
1
15
5
19
10
8
7
4
2
1
2
14
12
48
19
2
2
1
7
2
1
1
11
26
1
3
17
4
2
13
7
3
3
26
6
4
1
3
3
1
8
9
1
9
87,603
44,049
3,760
g
19,112
11
4
6
17,692
24, 725
7 244
5,516
5,430
702
11
11
41
13
1
21,627
3,857
19,279
25,748 ,
1,967 1
1
11
7
2
2
1
17
5
4
1
2
2
1
8
2
1
2
1
402
17
3
1
1
1
1,511
1,177
10
S3
^
17
2
3
6
4
1
1
2
3, 273
8,083
3,019
602
1,649
107
558
11,134
83
111
215
i
11,474
12, 264
6,446
i
19,871
3.299
14,177
8,236
104
1,026
2,745
1
3
1
2
1
3
1
;
1
1
1
3
5,624
940
23 235
1,425
1,542
4,708
11,113
832
108
12,122
1,101
1,542
419 I
2 364
i
537
i
727 '
727
325
273
325
1
3
4
1 121
2
2
3 336
::
537 •
1
4 i
2
1
419
1 2 364
1,932 i
916
324
i
2
724
724
2
1,932
273
565
1 121
\
3 33ft
964 1
964
1
~
284
284
850
660
573
149
559
573
701
101
1
1,523
4
1,166
2
302 i
1,499
457
2,315
3,023
457
568
32
302
2
4
1
2
1
1,004 I
225
639
6
3
6
2
1
3
1
4
1
3
4,555
7,807 I
4,656 |
2,397
596
1,752
7,030
353
64
1, 336
163
1
513
113
i
113
i
1
1
22
1
2
1
-.
9 1Q4
38
2 194
38
3,336
3,336
117
139
658
139
1,171 1
566
1
i
3 310
3 310
3,838
3,023
1
3
19,112
2, 758
5, 667
3,019
510
515
3 771
39, 794
280
2,416
15
2
3
1
7,031
798
5,102
6,378
1,687
i
775
2
1
5
117
i
Represents National banks only.
1
8
1,511
1
1
18
271
319, 289
i 100,054
140
2,158
32,953
|i
181
2,904
186, 282
j
27
3
24
18, 361
1
8
At the time of suspension one of these banks was a State member bank.
i
927
17 /(5i
*
75
FEDERAL RESERVE BULLETIN
JANUARY, 1932
BANK SUSPENSIONS, BY STATES, JANUARY 1 TO DECEMBER 31, 1931
(Banks closed to public on account of financial difficulties by order of supervisory authorities or directors of the bank. Figures of suspensions during
period include any banks which may have subsequently reopened. Figures of banks reopened during period include reopenings both of banks
closed during period and of banks closed in prior periods. Deposits are as of date of suspension where available, otherwise as of latest available
call date preceding suspension]
[Figures for latest month are preliminary]
Banks reopened
Banks suspended
Deposits (in thousands
of dollars)
Number
Deposits (in thousands of dollars)
Number
State
Members
Members
All
banks
New England:
Maine
New Hampshire
Vermont
Massachusetts
Rhode Island
Connecticut
Middle Atlantic:
New York
New Jersey
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
Dist of Columbia
Virginia
West Virginia
North Carolina
South Carolina
Georgia
Florida
East South Central:
ETentucky
Tennessee
Mississippi
West South Central:
Arkansas
Louisiana
Oklahoma
Texas
Mountain:
M^ontana
Idaho 01
Wyomin
Colorado
New Alexico
Arizona
Utah
Nevada
Pacific:
W^ashinsrton
Oregon
California.
Total
NonmemNa- State bers
tional
2
2
1
19
5
l
All
banks
National
2
1
2,254
1,177
402
- 13
102, 586
44,049
10
I§, 939
State
Nonmembers
All
banks
All
banks
Members i
Nonmembers
2,254
775
3,760
54, 777
1
19,939
2
1
2,426
2
5,463
2,426
.
10
55
38
137
24
16
42
8
4
6
23
18
89
97,995
73,745
274, 560
23, 872
27,609
103,946
45 901
13, 684
12 565
28,222
32,452
158,049
1
2
1
2
115
96
237
112
49
19
8
37
14
7
15
2
5
23
81
86
195
75
42
265,473
64, 238
187,803
107, 500
25, 221
26,865
10,955
56, 572
17, 013
6, 586
90, 041
10,823
16,984
43, 237
148,567
42,460
114, 247
47, 250
18, 635
3
20
17
3
10
2
101
209
122
66
73
109
38
13
22
12
13
13
8
4
1
3
1
87
184
109
53
60
101
34
26, 659
89, 925
24,000
8, 743
13, 630
31, 874
6, 662
4,882
8, 917
5,815
1,838
3,504
5,922
1, 599
496
30, 051
1,157
21, 281
50, 957
17, 028
6, 905
10,126
25, 952
5,063
20
3
17
26, 543
3,784
30
34
47
27
27
11
17, 562
38,151
33,104
10, 556
9, 391
9,717
8,247
14,010
14, C03
1,603
1, 680
4,036
23
26
49
18, 330
5, 953
7 046
28, 952
8, 763
2,154
2 093
14, 294
113
356
400
44
7
22
47
13.425
f 4, 712
4,057
49, 649
3.239
2,866
223
22, 564
12, 745
37
56
61
34
35
14
6
18
14
5
4
3
27
31
36
08
4
4
8
1
4
2
4
1
1
8
1
8
6
07
58
7
24
86
2
30
11
10
3
4
21
1
5
9
2
7
1
1
1
22
14
18
6
4
8
2
3
1
14
7
9
11, 547
11 058
14, 539
2,290
410
108
1,772
1, 759, 484
9
2
8
4
3
14
2
4
6
2
1,252
2,847
1,071
3,494
752 i
2,968
8, 652
172
1,515
3, 708
501
1,461
18, 801
3,178
3
20
15
3
9
1,081
10, 777
10, 540
2, 636
4,723
5,737
6
1
8
1
12
10
2,468
7,710
1,954
445
3, 527
3,221
__ .
22, 759
3
3
3,573
7,800
20, 373
18, 501
8, 452
6,250
5, 681
13
7
33
1
1
1
13
6
30
1
1
1
4, 525
5,922
10, 024
182
110
816
9, 567
3, 686
4 597
14, 258
10
4
10
4
16,057
419
39
5 ,
7,320
4,712
3,834
14,340
36
2
5
12
6
1
1
1
436
1,731
843
1,214
752
402
225
816
273
1,071
2,280
639
2,566
7,788
172
5,145
1 582
10, 280
391
8 255
210
6,011
1 221
4,049
302, 762
983, 316
473,406
2
9
2
12
10 i
1
1
1
1
1
1
3 .
. i
- - - !
5,463
18,801
3,178
773
496
7, 502
166
273
1,081
10, 777
4,803
2,636
3,950
1,972
208
1,788
172
3, 527
3,221
3,573
2,152
3,892
4,525
3,770
6,132
182
110
816
16,057
419
34
18, 510
8,268
10, 242
30
2
5
2
S
8,926
2,942
531
5,506
1,424
7,502
2,942
531
4,723
1
1
74
117
117
1 !
752
752
2 4 0 157, 936
54, 314
4
783
74
j
271 !
31 •
103, 622
1 Represents national banks only, except as follows: 1 State member in New York with deposits of $18,801,000, 1 in Illinois with deposits of
$5,200,000, 1 in Minnesota with deposits of $496,000, 1 in West Virginia with deDosits of $2,152,000, 1 in Mississippi with deposits
of $911,000, and 1 in Arkansas with deposits of $202,000.
2 At the time of suspension 3 of these banks were State member banks.
Back figures—See Bulletin for February, 1931, also Annual Reports for 1930 (Table 118), 1929 (Table 112), 1928 (Table 116), 1927 (Table 112),
1926 (Table 100), and 1925 (Tables 97 and 98).
76
FEDERAL RESEEVE BULLETIN
JANUARY, 1932
EARNINGS AND EXPENSES OF MEMBER BANKS
NATIONAL BANKS,i BY FEDERAL RESERVE DISTRICTS, FIRST SIX MONTHS OF 1931
NOTE.—The following statistics of earnings and expenses of national banks were compiled by the Comptroller of the Currency from reports submitted
by national banks
[In thousands of dollars]
Federal Reserve District
Total
Gross earnings:
Interest received—
On loans 2 . - .
On investments 3
On balances with other
banks
...
Domestic exchange and collection charges
Foreign exchange department.
Commissions received
Trust department
Profits on securities sold
Other earnings
Total earnings..
Expenses:
Salaries and wages
Interest paid—
On borrowed money On depositsTime
Demand
Bank
Taxes.
Other expenses
Total expenses
Net earnings
Recoveries on charged-off assets:
Loans and discounts
Bonds, securities, etc
—
All other
Total net earnings and recoveries
—
Losses charged off:
On loans and discounts
On bonds, securities, etc
On banking house, furniture,
and fixtures
On foreign exchange
—
All other losses
-.
Total losses charged off
Net addition to profits..
Dividends declared
Capital stock paid in 5_
Surnlus fund
Surplus
fund a5
Capital and surplus 5
Number of banks5
1
2
3
359,757
158,993
New
Boston i York
29,483 79,125
12,875 j 44,357
Phila- Cleve- Richdelphia land mond
Atlanta
Ghicag0
Kansas
City
13,229 i 20,417
7, 528
8, 701
18,141
5,242
16, 425
4,485
40, 702
15,365
12,034
4,956
770
1,437
609
853
434
70
841
1,657
5,214
238
26
19
189
576
1,255
66, 573
19, 902
13,470
1,036
831
814
1,145
744
7,019
7,424
328
12,609
28, 025
42,817
233 | 1,887
210 i 5,643
13
1,130 5,601
2,205 10,939
3,830 10,819
211
344
2
565
2,280
1,765
228
101
5
563
2,782
2,939
284
12
361
877
1,814
107
3
276
721
2,412
630, 442
51,002 159,215
53, 429 53,107
27,475
25,898
4,633 i 5,752 | 9,037
6,737
19,963
5,791
2,875
1,826
1,499
5,166
4,113
2,144
1,261
1,819
3,689
24, 625
3,964
2,904
2,377
10,887
20,227 26,467
14, 453
325
229
139,319
46,864
21,192
26,872
77,947
12,839 26,793 13,839
4,906 13, 229 4,090
1,158 4,849 1,251
1,433 4,242 2,460
5,763 19,845 5,291
13,713
4,756
2,823
2,310
7,581
1,342
727
1,327
3,111
4,976
1,724
847
1,028
3,604
13, 711
5,019
1,923
5,212
9,486
4,520
1,398
726
1,213
2,434
449,552
36,562 101,457 36,812
20,093
18,699
50,129
180,890
14,440 57, 758 16,617
14, 309
7,3
7,199
2,113
1,002
1,941
213
269
91
532
172
199,011
17, 211 62,814
17,190
15,679
101,565
71, 579
5,953 46,855
8,131 25,731
4,659
8,402
5,970
9,211
6,981
84
11,212
362
12
709
2,142
51
329
602
570
12
460
191,421
15,167 77, 777
13,992
16,223
7,590
100,240
2,044 * 14,963
8,338 35,492
3,198
9,309
•544
6,263
1,684,238 155, 405 474,439 125, 012 122,233
1,491,,814 121,021 519,499 208, 089 133, 791
354
943
1,506
746
662 I
631
86 !
6,818
1,417
897
1,952
3,305
20,094
65, 061
20,726
785
131
282
678
299
316
5,825
10,619 | 8,514
22, 019
2,298 ! 2,658
2,228 j 1,481
4,648 | 4,518
2,254
592
5,971
4,324
31
136
5,648 i 3,534
3,518 | 1,073
178 i
1,706 ;
341
273
9,022 ! 7,316
*?!
8,853
4,634
895
2
955
5,341
i
127
212
539
472
389 !
515 !
208
1,321
454
1,441
361 j
11,050 j 5, 223 j 15, 339 5,192
4,823
7,806 ! 5,772
13, 057
149
3,252
1,002
2,991
2,813 I 2, 742
3,652 ! 2,760
8,962
12,150
i 3,235
3,702
2,512
3,132
2,910
9,199
79,200 ! 77,395 177,805 58,169 59,105
60, 033 i 52,297 !l21, 375 33,766 i 33,709
333,101 (256,024 139,233 129,692 '299,180 91,935
3,176, 052 :276,426
6,800
15
153
86
935
212
450
7,815 j 7,735 I 18,249
1,949
376
32
85,787
451
610
1,838
1, 530
27,410
6,069
8,579
4,419
5,123
51,970
18,503
25,155 ! 35,489
367
553
504
I
389
182
1,
18, 555
3,865
184
746
2,122
9,441
10,281 | 31,9i6
cisco
717
496
26
2,361
3,446
6,319
503
4,030
906
San
Dallas Fran-
37
452
853
2,822
9,373
133, 328
Min-
St.
30,725 28,951
16,723 16,393
419 i
327 i
Member banks only, i. e., exclusive of national banks in Alaska and Hawaii.
Includes discount.
Includes dividends.
Louis
412 |
81, 538 1190, 240
41,088 43,129 j 124,017
92,814 124,785 ! 124,667 ; 314, 257
575
832
* Net loss.
* As of June 30,1931
580 i
453
JANUARY,
77
FEDERAL RESERVE BULLETIN
1932
EARNINGS AND EXPENSES OF MEMBER BANKS—Continued
STATE BANK MEMBERS, BY FEDERAL RESERVE DISTRICTS, FIRST SIX MONTHS OF 1931
[In thousands of dollars]
Federal Reserve District
Total
Gross earnings:
Interest received—
On loans 1
On investments 2
On balances with other
banks
Domestic exchange and collection charges
Foreign exchange department
_-.
Commissions received
Trust department
Profits on securities sold
Other earnings
Philadelphia
Cleveland
Rich- Atlanmond I ta
Chicago
So,966
37,154
14,184
8,379
32,447
11,840
5.237
4,117
1,382 ;
922
37,873
14,189
4, 655
1,236
454
612
1, 651
277
65
149
213,782 i 10,636
87,894
4.768
3,811
52
10,822
309
25,135
2, 145
14,734 !.i:
988
790
18,625
Total earnings..
381,109
Expenses:
Salaries and wages
Interest paid—
On borrowed money i _ _ _
On depositsTime
Demand
Bank
Taxes
Other expenses
Total expenses
81, 687
2, 900
71,115
35, 248
10, 508
17, 718
45. 678
264,854
Net earnings
Recoveries on charged-ofY assets:
Loans and discounts
Bonds, securities, etc
All other
116, 255
3,269
1, 146
1,889
Total net earnings and recoveries.
I 122, 559
Losses charged off:
O n loans and discounts
On bonds, securities, etc
On banking house, furniture,
and fixtures
All other losses
Total losses charged off
Net addition to profits
Dividends declared
Capital stock paid in 3
Surplus fund 3
Capital and surplus 3
!
!
:•
j
j
•
|
;
!
|
1
19. 910
3.716 :
i
41 |
5.052
2. 264
225
988
2,198
1
2
52 I
130
305
158
432
!
!
!
i
111
! San
Min- Kansas
neap- City Dallas Franolis
St.
Louis
!
8,285
3, 596
814
440
658 ;
300
52
537 ;
I
216 j
30 !
14
365
662
551
874
22
9
65
65
69 i 738 >
54 , 418
301 !i 4,015 ;
218 2.932 j
661 3,2S9 :
!
|
i
'
i
1,682 : 11,112
230
4,194
90 '
180
512
20
14 I
121
16o
52
190
17
159
648
118
288
678
237
556
1,529
1,429
800
I
!
!
i
157,461 \ 29,175 j 53, 906 j 8,075 6,530 | 64,649 , 14,863 > 1,497 j 3,447 2,446 : 19,150
34, 767
i
1,065
6,073 j 10,507
1,885
1,365 : 13,644 3,270 ;
352
873 !
9
20 |
359
253
87
170 i 351
20, 398
14, 237
4,572
6,660
19,198
4,467
3,441
824
1,148
3,489
14,695
4,903
1,608
3,639
5,414
1,688
599
407
316
1.166
1,099 13,487
614 ! 6,357
1,335
249
611 3,081
1,105 , 6,953
3,062 | 435
996 : 71
316
35
646 j 93
2,225 I 186
313
493
244
85
14,484 i 100,897
2,697
5,426
5, 669
468
7,046
2, 964
157
175
55,284
1,072
439 |
19,801
41,019
6,148
5,113 i 45,208 ! 10,954 1,181
56,564
9,374
12,887
1,927
1,417 ! 19,441 ! 3,909
1,478
639
38
21
98
300
212
171
97
24
316
750
27
21
13
~~55~
59.567 I 9,531 13,570 | 2,087 j 1,597 j 20,367 | 4,310 j 363
826
130
62 !
51
26, 816
18,458
981
262 i
i
117 j
2.50-1
m|
S. S77
117
271 Ij
10,069 3.620 i 3,185
6,254 | 1,197 j 1,287
5,074 ! 1, 132 i 3, 980 I
12, 809
1, 546 2,059 !
9,294 ! 1,656 2,791 !
5,474 !
560
28,137
4. 597
31,430
\ 67,275
38,652
2,969
j 73,545
; 936,118 i 39,905 I 426.148
1,249,699 i 49,088 j 661,467
;2,185,817 I 88,993 |1,087,615
Number of banks..
I New
.Boston! York
33 i
Includes discount.
Includes dividends.
156
135
160
362 j
443 !
3,497
5,655 i
145 i
2;
33 ;
620 j
61 ;
245 l
197 ;
93 j
111 !
462 3,072 j 3,704 j 1,323 190 i
188 j 1,901 i 1,089 : 658
31 i
742
124
433
24:
270 ; 452 j 164
5,267
5,678 i 2,269 ! 245
I 6, 034 7, 915 ! 1, 345 4 3, 670 I 14, 689 i 2,041
118
i 6,082 7,110 i 1,187 1,104 12,033 ! 2,199 175
58, 611 105,543 I 26,365 18,630 159, 586 I 42,095 3,045
147,456 153,054 | 16,281 12,980 1153,149 23,693 1,688
J206.067 258,597
82
88
42,646
39
48
58
218
117
98
104
472
6,201
1,156
595
447
2,603
1,795 I 15,557
651
129 :
5
118 ;
3, 593
87
20
903 I 3,769
i
178 !
315 !
511 I
490 !
8, 530
3,218
735
504
9
743
370
12
57
582 !
267
445
321
1,825
1, 944
1,278
8.265 ! 39,395
2,800 ! 24,825
31,610 1312,735 ! 65,788 4,733
11,748 i 11,065 i 64,220
40
106
44
199
3 As of June 30, 1931.
< Net loss.
78
FEDERAL RESERVE BULLETIN
JANUARY,
1932
ALL BANKS IN THE UNITED STATES
ALL BANKS IN THE UNITED STATES—PRINCIPAL RESOURCES AND LIABILITIES ON CALL DATES
[In millions of dollars;figuresfor nonmember banks are for dates indicated or nearest thereto for whichfiguresare available]
Loans and investments
Federal reserve district
ALL BANKS*
Boston.
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis. _.
Kansas City...
Dallas
San Francisco.
Total..
1930
1930
1931
1931
Rediscounts and
bills payable
1930
1931
1930
1930
1931
Sept.
24
June Sept.
29
30
1931
Sept.
29
Sept.
24
June
30
Sept.
29
Sept.
24
June
30
Sept.
29
4,065
11, 856
2; 313
2,700
1,425
916
4,366
1,114
748
958
676
2,616
2,463
5,781
1,656
1,670
685
377
1,959
535
585
544
265
1,355
2,638
6,881
1,860
1,654
733
400
2,000
574
565
566
293
1,475
2,690
7,097
1,824
1,549
738
412
1,871
561
556
563
294
1,457
6,340
17,033
3,754
4,413
2, 212
1,401
7,201
1,818
1,475
1,829
1,085
4,223
6,332
17, 822
3,749
4,138
2,114
1,304
6,446
1,669
1,383
1,635
1,007
4,182
6,269
17,028
3,520
3,852
1,983
1,223
6,016
1,570
1,293
1,549
928
3,921
35,384 ] 33,752
17,875
19,637
19, 609
52,784
51, 782
49,152
1, 543
7,165
1,619
2,012
772
635
2,869
683
456
614
532
1,973
775
3,498
922
1,230
324
284
1,324
389
358
419
219
992
4,124
1,114
1,257
356
312
1,461
435
361
449
243
1,128
4,350
1,121
1,191
365
325
1,369
426
365
450
244
1,104
2,328
10,358
2,280
3,159
1,104
962
4,594
1,151
876
1,192
850
2,984
2,260
10, 637
2,402
3,042
1,079
916
4,265
1,057
846
1,101
789
3,172
2,203
9,694
2,286
2,884
1,027
863
20,874 j 10,734
12,106
12,199
June
30
Sept.
24
June
Sept.
Sept.
24
6,871
19,280
4,409
4,893
2,391
1,505
7,627
1,975
1,447
1,720
1,096
4.377
6,767
19,323
4,339
4,550
2,224
1,338
6,619
1,718
1,363
1,575
1,012
4,194
6,754
18, 953
4,137
4,249
2,163
1,328
6.236
1,675
1,303
1,520
970
4,072
4,408 4,130
13, 500 12,442
2,753 2,479
3,223 2,896
1,491
1,706
1,128
938
5,668 4,618
1,440 1,145
57, 590
55,021
53,361
39, 715
2,583 2,456 2,432
12, 093 11, 661 11,515
2,737 2,788 2,740
3,530 3,370 3,203
1,137
1,206
1,141
960
1,053
957
4,967 4,486 4,238
1,289
1,137 1,109
821
872
840
1,160
1,102 1,064
776
868
803
3,116 3,182 3,077
1,808
8, 595
1,814
2,300
882
768
3,642
899
515
741
649
2,124
1,588
7,537
1,674
2,113
785
646
3,025
702
479
653
560
2,053
24, 738
21,816
29
Deposits, exclusive of
interbank deposits
Investments
Loans
Total
i
863
1,175
830
3,022
798
1,009
718
2,719
4a
563 ! 452
114
106
90
59
50
71
40
12
27
26
59
695
MEMBER BANKS
Boston
_-.
New York
PhiladelphiaCleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis. _.
Kansas City...
Dallas
San Francisco»
Total.
35,472 33,923
33,073
25
96
72
67
36
34
27
19
5
15
17
52
I
-I-
31,839 I 31,566 29,469 ! 316 I 217
466
I
NONMEMBER BANKS
Boston
New York
PhiladelphiaCleveland
Richmond
Atlanta
__
Chicago
St. Louis
Minneapolis...
Kansas C i t y . . .
Dallas
San Francisco Total..
1,000
800
1,044
738
2,941
17 !
69 I
27 !
23 I
26 !
34 j
50 I
i 295 !
I
: 9
i is;
! 10!
4,287
7,188
1,672
1,364
1,185
453
2,660
686
575
559
228
1,261
22,118
4,322
7,438
1,396
1,046
1,026
368
1,998
566
482
456
194
995
2,599
4,905
939
924
824
360
2,026
541
348
434
181
21, 099 20,288
14, 977
4,311
7,662
1,551
1,180
1,083
381
2,133
581
522
473
209
1,012
1,688
2,283
733
440
361
93
635
146
227
125
47
363
1,770
2,757
746
397
377
88
540
139
204
117
51
346
1,801
2,748
703
358
372
87
502
135
190
112
50
353
12,877 j 7,141
7,531
7,410
2,542 ! 2,522 I
4,906
4,691 I
694
805
688
783
653
705
281
293
1,496
1,593
431
442
292
319
344
356
144
158
642
13,568
4,011
6,675
1,474
1,253
1,108
439
2,607
666
600
638
235
1,239
4,073
7,185
1,347
1,096
1,034
387
2,181
612
537
535
218
1,009
4,066
7,334
1,234
18
18
33
23
23
15
44
21
7
12
361
2,027
570
493
505
190
980
20, 945 20, 216 19,682 j 247
235
230
1
Includes all national and State banks (including stock and mutual savings banks) and all private banks under State supervision.
Backfigures.—SeeBULLETIN for July, 1930, and January and July, 1931; also Tables 42, 43, and 87-90, Annual Report of the Federal Reserve
Board for 1930.
JANUARY,
79
FEDERAL RESERVE BULLETIN
1932
ALL BANKS IN THE UNITED STATES i—PRINCIPAL RESOURCES AND LIABILITIES ON
SEPTEMBER 29 AND JUNE 30, 1931, BY STATES
[Amounts in thousands of dollars]
Loans and investments
State
Total
September
New England:
Maine
New Hampshire.
Vermont
Massachusetts
Rhode Island
Connecticut
Middle Atlantic:
New York.
New Jersey..
Pennsylvania.
East North Central:
Ohio
Indiana..
Illinois
Michigan
_..
Wisconsin
{Vest North Central:
Minnesota.
Iowa
Missouri
North D a k o t a . . .
South D a k o t a . . .
Nebraska
Kansas
South AtlanticDelaware. _
Maryland.
District of Columbia...
Virginia
West Virginia...
North Carolina..
South CarolinaGeorgia
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
September
Investments
June
September
Deposits, exclusive Rediscounts and Number of reof interbank
bills payable porting banks
deposits
June
September
June
September June temper!
429,964
428, 282'
203,934
199,185
226, 030;
229, 097
297,719
153,852; 151,711
297,204
143,867 i 145,493
226, 344
85, 336 i 84, 557
230,081 i 141,008:
145,524
4, 219, 371 4,229,246 1 2,676,730 2,714,033 ,542,641! 1, 515, 213 3,
271,764
273, 630! 265, 638
545, 394
276,991
578, 300 567, 691 1,
1, 340.995 I, 346^ 907,
762,695:
779, 216
16, 808, 546 17,128, 040, 10,609,101 11,140,155
2, 225, 984 2,279,870 1 1,339, 701i 1,397,954
5,350,175 5, 663, 201 ; j 2, 873, 0441 3,073,384
2, 256,611 2,436, 854!!j 1,614,828 ; 1,763,168 641, 7831 673,686! 2,159,959 2,355,467
654, 569 669,024 i 454,193. 468,822
200,376! 200,202! 657, 937 687,570
2,992, 657 3, 207,105 1,981,449; 2,121,479 L, 011,208i 1,085, 626 !i 2,796,622 2,998,275
1, 624, 527 1,744,089! 1,136,0601 1,216,860 488,4671 527, 229 1,602,081 1,745,070
834, 807 871,267,
284,201! 298,935! 798,218 861,227!
550,606:
572,332
824, 971
849,973!
682,832
1,070,181
82,198
97, 969
287, 555
319,103
1,102,418H
118
119
100
444
35
231
122
119
100
444
35
231
1,043
531
1,397
1,079
545
1,452
46,422| 34,014
10,861!
9,628
30,839 29,966
21,522; 15,459
9, 285, 7,137
872!
803!
1,4151
628!
899|
921
812
1,463
672
915
913]
1,095
1,064
272|
283!
726
954
937
1,107
1,101
302
320
727
975
47
201
48
219
39
430
262
324
141
344
403,285|
5,482
405,413
4,408
,
271,179
2,787
1,937
268,457
217,687
3,777
3,363
222,757 23,233
9,219
911, 569
350
2,050
512, 818 3, 960, 560
512, 748
8,735| 6,44'
234, 111
1,251,802
>, 199, 445|5, 987, 885 15,i, 000, 722 15,i, 685,052 2 76,104 2 45,498
886, 283 j 881,916 2,112, 770 2, 220,907 46,921 35, 944
5,477,13 lj 2, 589,817 4,488, 329 4, 800,077 133,135! 74,672
88,565::
109,128:,
303,456 ••
326,251;:
471,058
566,782,
653,975,
54,8841
61,928;
202,987;
213, 359i
490,018
578,333
683, 974
60, 993
71, 985
209,816
225, 506
353,913,
99, 516j
416, 2061
27,314|
36,041i
84,568;
105, 7441
4,842
359,955!
806,811
856,120| 4,529;
6,593
104,499! 686, 093
703,2901 7, 903
418,444' 1,040,231 1,100, 699! 12,006 11,705
27,572 j
84,540
91,233
1, 059 •• 1,549
112,390
37,143i
97,825
2,0311 2,476
308, 5601 6, 290: 4,902
93, 640
293, 550
340, 008
100, 745
316, 989
6, 8021 5,491
167, 019
792, 506
257,331
481,652
289, 494
281, 094
133, 210
299, 75'
182, 44'
165,816 !
842,663'•
249,483
489,085 :
301, 708:
277,775 : ;
137, 376 ''.
291,430:
189,660,
99,439
416,417,
158, 561'!
378, 524
220, 976
217,693
87, 984
212,444
71, 400
102, 422
456,092,
158,293]
390, 252
230.654
217,923
93,964
215, 528
75, 540
67, 580'
376,089!
98,770'
103,128!
63, 3941
386, 57 lj
91,190;
98,833i
71,054!
59,852
43,412!
75, 902!
114,120!
143, 873
707,434
260,194
426, 543
262,649
260, 298
131,556
281, 037
182,821
144,192
8701
801,905 17, 977|
259,720
2,349i
438,481! 11,337j
283, 290j 11,426;
259, 630 12,707|
139,0451 4, 6621
283,1301 7, 566;
202, 016
2,248j
412, 748
345, 481
218,392
145, 520
420,958"
347,952 :
226,598
147,4771
317,574!
280,910,
158,9701
102, 833,
323, 019
280,687
170,146
104,974
95,174!
64, 571'
59,422
42,687!
97,939
67, 265
56,452
42,503
355, 942
327,180
191,180
133,863
366,7611
343, 5421
204,374,
148, 5641
127,019
375, 558
309, 876
849, 567
135, 370!
376,803,
327, 843
885,029,
94, 065!
275, 949!
188,591!
593,611!
99, 947
277, 311
202,281
631,058
32, 954
99, 609
121, 285
255,956
35,423,!
99,492!
125, 562!
253,971'
117, 904
338, 260
311,075
817,705
137,127
373,923
338,123
879, 581
115, 854
63, 257
50, 364
239, 960
32, 907
59,485
137, 933
34, 232
119,763!
67, 5601
52,096;
241, 2691
35, 247 i
62, 801
150,698
33, 943
60, 530:
36, 985 j
35,085|
127, 290
19, 651
31,831
97, 652
25, 209
65,071
39,921!
119, 574
69, 364
50,440;
255,847
33, 526
64,275
126,442;
1,577
76,364
941
53, 946
2,141
260,4351 2,978
37,189
1,695
70,754
932
121,705
1,995
36,678 L
68, 518'
63,4011
45,226
87,313
111,047!
I,1
5,849
260
10,953
8,724
39
423
251
324
136!
342
193
7,989,
14,758
10, 234!
12,353!
11,668
2,933
7,464
1,738
7,503
7,914
9,135
6,452
513
430
265
245
515
. 433
286
247
7, 668!
17,845!
6,325'
18,342
4,177
5,740
5,231
14,353
312
206
539
1,146
321
206
550
1,176
162
129
81
249
50
35
93
32
166
131
82
250
52
37
96
33
2,346
2,601
10,578
208
404
317
215
411
53, 360, 969 55,021,103 1 33,751, 521 35, 384, 111 19,609, 448 19, 636, 992 49,151, 657151,782,012 695, 378 451,804
21,301
21,903
1
I
131,427
21, 691
34, 015
106, 854
25, 674
54,692
55,324
27, 639 J
26, 272
15, 279i 15,2381
112, 670] 109,842i
13,556!
13, 256
28,786
27,654
43,8441
40, 281
8,269]
9,023
108,852
35,111
432, 992
422,663
439,938
248, 707
257, 548 173, 956 182, 390 409,505
241,485
231, 463
104,225
226, 547
229,430'
111, 739 122, 322 117,691
3,153, 158 3, 238, 910! 2, 082, 366 2,158, 089 1,070, 792 1,080,821 3,028, 732 \, 235,064
4, 664
1,938
49,352
1,459
829
1,168
2,074
830
290
l,57o!
1 Includes all National and State banks and all private banks under State supervision. Figures for State institutions are taken from page 81
and represent in some cases the condition of banks as of dates other than Sept. 29 and June 30, 1931.
2 Excess overfiguresshown on pages 80 and 81 is due chiefly to technical differences between reports to the board and reports to State banking
authorities.
Backfigures.—SeeTables 91-93, Annual Report of Federal Reserve Board, 1930.
80
FEDERAL RESERVE BULLETIN
JANUARY,
1932
NATIONAL BANKS —PRINCIPAL RESOURCES AND LIABILITIES ON SEPTEMBER 29, AND JUNE
30, 1931, BY STATES
[Amounts in thousands of dollars]
Loans and investments
Total
State
September
New England:
Maine
New Hampshire
Vermont
Massachusetts....
Rhode Island
Connecticut
Middle Atlantic:
New York
New Jersey
Pennsylvania
East North O n t r a l :
Ohio
Indiana
Illinois
Michigan
Wisconsin,.
West North Central:
M innesota
Iowa
Missouri
Loans
June
. September
Deposits, exclu- Rediscounts and Number of resive of interbank bills payable porting banks
deposits
Investments
June
i Septemi
ber
Septem- ;
ber ;
June
I
June
June
1. 709
1.297
792
14, 731
1,075
3,985
43,807
20,011
63,252
526!
2891
8031
434,115,
190, 387i
600, 485!
299,153!
262, 5531
423, 772
205, 016
723,840
318,670
269,219
226,643
113,759
354,813
153, 778
141,336
211,693
113,585
396,365
166,438
153,520
004,950:
605,819
2(J2,271.!
321,904
918.323, 1,068,679
449,127;
495,817
376,150
401,350
13,885
3,736
9, 327
4, 595
1,755
290,062|
130,984i
237, 325 i
35,020 !
30,066|
112,717
96,947!
300,191
142,535
242, 505
37,816
34,187
119,546
103, 235
207,475
86,665
167,370
23,934
25,271
59.877
71, 509
203,875
91,648
167,306
23,943
25,719
68,949
66,651
472,953:
211,166
352,287;
60,103
54,284!
167,149!
163, 702
503,232
228,363
354,920
62,528
59, 565
182,159
177, 783
1,00;
2,018
4,114
453
1,156
3,937
2,249
20,742 I
20,963
11,029
11,346
M aryland.. _
187,464
191,553 ! 98,344
102, 301
District of Columbia...
139,378
132,626 I
81,364
81, 302
Virginia
280,868
280,400
212,372
218,202
West Virginia
143,332
146, 506
104, 584
107,127
N orth Carolina
88,5091
85,190
66,189
66,419
South Carolina._
56,701
57, 516 j 39, 271
40, 728
Georgia
100,773
196, 703 ! 125. 5691
133, 522
134,876
Florida
129,207
44,90?j
47,337
East South Central:
Kentucky
180,182
188, 392 j 128,882;
134,327
Tennessee
215,319
217,7S0!i
168,546!
168, 323
Alabama
161,154
162, 786 I 110,449!
114,593
M ississipr i
51. 424
51,078 I
34, 384:
35,353
West South Central:
;
54,994
Arkansas
52,979
31,67o|
32,546
Louisiana
:
07,649
99,348
71,331
71, 3271
Oklahoma
'
257,795
269,821
156,141
165,800
Texas
' 670,265;
685, 763
459,055 !
477,907
Mountain:
|
Montana
65.3991
66,985
30,585
33, 459
Idaho
!
29,030!
30,291
17,657
18,797
Wyoming
:
30,1861
30,322
19,331
19,674
Colorado
190,801!
192,110
94,474
98,611
New Mexico
:
23,769|
25,614
13,595
15,163
Arizona,.
20,954j
22,510
10,270
10,690
Utah
i
39,940i
43,132
23,294
24,920
Nevada
17,073
16,336
10,484
10, 370
Pacific:
!
Washington
247.859
256,991
132, 598
135,999
Oregon
170, 467' 171,456
70,013
75, 450
California __
; 1,981,3541 2,066,064 1,362,536 1,418,464
9,931
89,120
58.012
68,496
38, 748
22,320
17,430
71,204
84, 305
9,396
89, 252
51, 324
62,198
39,379
18,771
16, 788
63,181
87,539
17, 339^
162, 343.
143,646:
256,1481
127,098J
75, 594!
54,098i
193,370
128,142!
17,228
170,929
141, 485
261,112
134,719
74,926
55,801
197,308
141,156
317!
1,041,
200|
4,939
3,966
5.8251
1,151
2,285!
655
51,300
46,773
50, 705
17,040
54,065
49,467
48,193
15,725
158,4551
187,993'
137,176
47,897|
169,274
204, 355
145,352
51,329
3,347
3,1131
4, 298
1,165i
21,304
26,322
101,654
211,210
22,148
28,017
104,021
207,766
47,318!
79,934;
257,637i
641,859j
53, 724
90,750
277,203
672,703
34,814
11,373
10,865
96,327
10,174
10, 684
16, 646
6,589
33,526
11,494
10,648
93,499
10,451
11,820
18,212
5,986
68,458;
30,449|
30,050
204,422 !
24,591:
22,482:
34,394 i
15,446:
71,076
32,956
31,024
209,010
27,74.8
24,468
37,143
15,832
North Dakota..
South Dakota..
Nebraska
Kansas
South Atlantic:
Delaware _
Total
1
:
j
:
115,261
100,454
618,818
I
541
294
28
56
2,064
4,028
4,135
13,102
260
537
56
10
232,3271
246,112
120,992
96,006
171,816!
179,200
647,600 1,884,871! 2,055,870
20,121.969120,824,530 12,465,55613,162,271 7,656,413 7,662,259 18,126,160-19,418,337 324,198 153, 493
I
Member banks only, i. e., exclusive of National banks in Alaska and Hawaii.
June
ber
j
122,019!
60,682
129,205
131,189
68,523
60,081
122,206
71,1081
62.290 !
31,014
72,265'
71,750 i
41,25l|
28,873
59, 568i
42,877
28,863
_
63,950
64,651 '
35,087;
28,123
56,4451
56,476
36,528
440, 382 430,921 1,168,794, 1,207,508
1,291,283: 1,301,914
8oO,901j
870,993)
22,441
53,389
54, OS.)
30,948,
21, 287
41318
41,318
42,019
42019
32,802i
80,274
| 251,961
254,016
76,563
171,687
234, 551
225,189'
177,453'
I
! 4,822,871 4,972,923 2,955. 533- 3,184, 591 1,867, 338 1, 788,332 4,015,677 4,407,3741
! 816,075
835,808
787,437;
820,714
341,043
335,935
475,032,
499,963
I 2.521,924' 2,629,981 1,387,860 1,455,273 1,134,064 1,174,708 2,089,173! 2,215,9191
660,758
635,465
304.146
318,601
955)298! 1,120,205
452,931
485,108 j
403,889!
422,739
j
504,066
407,537
234,183
217,649409,811
404,695!
61,759
58,954
59,906
55,337
188,495 !
172,594:
169,886 I
168,456
Septera-
100
90
6,653;
6,800
81
FEDERAL RESERVE BULLETIN
JANUARY, 1932
STATE BANKSx—PRINCIPAL RESOURCES AND LIABILITIES ON SEPTEMBER 29 AND JUNE 30,
1931, BY STATES
[Amounts in thousands of dollars]
Loans and investments
Total
Sop,™-
Loans
! s t r i >™
New England:
300,759
297,093 j 157,507
Maine
225,454
225,454!
102,616
New Hampshire _ _.
Vermont
162,394
165,430!
105,921!
Massachusetts
2,928,088 2,927,332;' 1,825,829!
Rhode Island
492,005
488,540!i
240,816|
Connecticut
1,089,034 1, 092,8911!
591,008!
Middle Atlantic:
New York
11, 985,675,12,155,117! 7,653,568
New Jersey
j 1,409,909 l,443,972|i 864,669
;
Pennsylvania
2, 828,251 3,033,220j| 1,485,184;
East North Central:
Ohio..
; 1,595,8531 1, 801, 389j'! 1,180,713
Indiana
' 350,423! 350,423
263, 806
Illinois
2, 037,359! 2,086,900 1, 380, 964
Michigan
; 1,171, 5961 1,258,981 i 836,907
288,053
Wisconsin
' 430, 918!
448, 528:
West North Central:
Minnesota
180,996
327,434; 345,907
435, 798
Iowa
448, 649 448,649i
Missouri
416,650
665,486: 692,607
North Dakota
19, 864
26,806,
23, 244
South Dakota
31,862
49, 222
42,632
Nebraska
90, 270
114,961:
114,961
Kansas.,
1 150,647: 156, 365; 116,412
South Atlantic:
j
Delaware
j 146,056 145,074:
88, 410
Maryland
| 605, 042 651,110
318. 073
District of Columbia...! 117,955 116,857!
77,197
166,152
Virginia
...
200,784 208,685:
Wrest V irginia
_
146,162 155, 202 i 116,392
151,504
North Carolina
' 192,585 192, 585
48,713
South Carolina
;
79,860
76, 509
86, 875
Georgia
94, 727!
102,984
26,498
Florida
;
54,784j
53, 240
East South Central:
Kentucky
232,566: 232, 566
188, 692
Tennessee
I 130,162 130,162,
112,364
Alabama
|
48, 521
63,812!
57,238
Mississippi
;
68, 449
96,399,
94, 096
West South Central:
j
Arkansas
j
74,040,
80, 376
62, 390
Louisiana
! 277,909 277,455j 204, 622
Oklahoma
__.
j
32,450
52,081 i 58,0221
Texas
! 179,302 199, 266! 134,556
Mountain:
j
52, 778 i
50,455
29,945
Montana
!
19,328
Idaho
|
37, 269:
34,227
15,754
Wyoming
I
21, 774i
20,168
32, 816
Colorado
!
49,159;
49,159,
6,056
New Mexico...
_..!
Q 1IOOI
^ft
y,
9, 633;
21, 561
Arizona
!
38, 531
40, 291 i
74,358
Utah
|
97, 993 107,566,
14,725
Nevada
'
17,159,
17,607:
Pacific:
•
116,109
182,947!
Washington
j 174,804
34,212
56,080
57,974!
Oregon
California
| 1, 171,804, 1,172, 846 i 719, 830
Total
Investments
September
143,252
157,989
122,838
102,616
56,473
108,996
1,843,040 1,102,259
251,189
244,189
601,763
Rediscounts
and bills payable
Deposits, exclusive
of interbank deposits
September i
June
139,104 283,3941 280,'
122, 838 208, 889! 208,889
56, 434 161, 242 i 166,281
1, 084,292 2, 742, 7751 2,753,052
244, 351 471, 500 470, 729
491,128 1,008,922 1,017,251
3,773
640
2,571
8, 502;
975.
4, 750
7,955,564 4,332,107 4,199, 553J10, 985,045 11, 277, 678 20, 297
545,9811 1,325,333 1, 400,193 26,910
897, 991 545, 240
1,618,111 1,343,067 1,415,109; 2,399,156 2, 584,158 69,883
Number of
reporting banks
June
ber
3,785
74
65
55
295
25}
170:
75
65
55
295
25
170
15, 357
22,292
53,967
517:
242i
594
538
251
644
3,043
640
2,800
6,437
1,339,396
263,806
1, 397, 639
898,190
303,113
415,140
86,617
656, 395
334,689
142,865
461,9931 1,555,009! 1,749,648 2 32, 537 2 28, 896
86, 6171 365,666! 365,666 7,125
7,125
689,2611 1,878,299 1,929,596 21,512! 22,240
360,791 1,152,954! 1,249,253 16,927, 11,462
145,415 422,068J 459,877 7,530j 5,805
189,827
435,798
441,469
23,177
37,798
90, 270
122, 271
146,438
12,851
248,836
3,380
10,770
24, 691
34, 235
352,888
156,080 333,858
12,851 3 4 7 4 , 9 2 7 j 3 474,927 i
251,138 3 687,944 j s 745,779j
3,629
24,437;
28, 7051
11,424
43,541!
52,825
24, 691 126,40l! 126,401
34,094 3 153,2871 3162, 225 i
91,076
353, 791
76, 991
172,050
123, 527
151,504
53, 236
82, 006
28, 203
57.646
286,969
40, 758
34,632
29,770
41,081
27,796
16,109
26, 742
53,9981
297, 319i
39, 8661
36, 635
31, 675
41,081
26, 624
12,721
26, 581
188,692
112, 364
55,553
69,621
593I 031
6251
625
1,005! 1,045
515!
553
754!
767
!
3, 522
5,885:
7, 892:
606
875;
2,353 •
4, 553|
5,885
6,915
720
1,163
2,353
3,838
893
948
181
199
562
721
893
983
204
228
562
738
126,964;
630,976!
118,235!
177,369'
148,571!
184,704i
83, 244!
85,822!
60, 860;
5621
15, 4C6!
599
5,769
5,779:
5,843i
3, 644
5,186:
1,286'
779
4,808
60
6,014
4,758
5,843
1,782
5,179
1,083
31
130
27
273
149
269
106
275
142
32
146
27
277
158
269
110
275
142
43, 874
17,798
8,717
25.647
43,8741
197,487!
197,487j
17, 798i 3 139,187 i 3 139,1871
8, 2591 3 54,004: 3 59,0221
26, 778 j
85,966!
97,235]
4,156
4,801!
4,182|
9, 8381
4,156
4,801
4,837
5,287
392
340
177
217
392
340
194
219
67,401
205,980
36,481
153,061
11,650
73, 287
19,631
44,746
12,975!
71,475 j
21,541!
46, 205
70, 586
258,326
53,438i
175, 846j
83, 403
283,1731
60,920!
206,878;
5,604,
13,817!
2,1901,
5, 240
3,357
4,214
2,146
4,570
258i
177i
282
618
265
177
290
639
31,612
21,124
17,184
32, 816
6,528
23, 325
81,934
15, 304
20, 510i
14,899!
4,414!
16,343|
3,0821
16, 970!
23, 635!
2,434|
21,166!
16,1451
4, 590!
16, 343|
3,105
16,966
25,632
2,303
51,116
3 38,915
20, 390
51,425
8,935
»4i,7r"
74,458
19, 665
55, 366
3 43,4081
22,922 j
51, 4251
9,441i
3 46, 286!
84,562I
20,846-
879
290
1,062
800
594
<674
1,781
211
844
800
3141
4
278i
1.462J
106
91
56
137
25
23
76|
221
108
92
57
137
26
25
79
23
121, 549
58, 6951
21,868;
451,974;
61,398
177,178
186,880;
21,685!
59,647
62,285:
433, 221 i 1,143, 861 1.179,194
2,138,
924
6,458
1,775
1,3"
6, C
206
122|
219
217
125
222
33, 239, 000 34,196, 573JJ21,285, 965:22, 221, 84011, 953, 035.11, 974, 73331, 025, 497J32, 363, 675; 359,180, 286,911
14,648!
15,103
739,625!
126, 534|
545,09l!
116,548!
170,395 i
135,5511
184, 704
77,458
87. 667
54, 679;
-I
1 Includes all State banks (including stock and mutual savings banks) and all private banks under .State supervision. Figures relate to dates
nearest
thereto for which figures are available.
2
Includes bonds borrowed.
34 Includes due to banks.
Includes miscellaneous liabilities.
NOTE.—All figures in the September columns are as of Sept. 29, except as follows: Maine, Sept- 26; New Hampshire, June 30; Massachusetts,
savings banks, Oct. 31; Rhode Island, savings banks, June 30; Connecticut, savings banks, June 30; New York, State banks, Sept. 30, savings
banks, June 30; Indiana, June 30; Iowa, June 30; Missouri, Sept. 18; Nebraska, June 30; Kansas, Oct. 10; Maryland, State banks, Nov. 14, savings
banks, June 30; North Carolina, June 30; Kentucky, June 30; Tennessee, May 12; Alabama, Nov. 16; Louisiana, Sept. 28; Colorado, June 27; Utah,
Sept. 30. All figures in the June columns are as of June 30, except as follows: Missouri, Apr. 24; Kansns. June 27; Tennessee, May 12; Colorado, June
27; Utah, June 24.
82
FEDERAL RESERVE BULLETIN
JANUARY, 1932
INDUSTRIAL PRODUCTION, BY INDUSTRIES
[Index numbers of the Federal Reserve Board. Adjusted for seasonal variation. 1923-1925 average=100]
1931
1930
Industry
Oct.
Nov.
Dec.
74
71
74
91
81
69
75
68
52
150
170
109
94
93
94
85
97
158
90
105
107
100
81
97
91
99
123
72
104
141
122
65
63
65
93
83
63
66
64
52
162
182
123
94
87
94
71
83
147
93
123
103
95
77
94
89
93
115
74
97
133
119
56
59
87
77
57
61
61
39
157
178
116
89
86
84
82
101
142
91
93
98
91
79
100
86
80
101
77
95
123
115
Jan.
Feb. Mar. Apr.
May
June
July
Aug. Sept. Oct. Nov
MANUFACTURES
IRON AND STEEL
Pig iron
Steel ingots
TEXTILES
Cotton consumption
Wool
Consumption
Machinery activity 1
Carpet, rug loom activity 1
Silk
Deliveries
Loom activity »
_
FOOD PRODUCTS
Slaughtering, meat packing
Hogs
Cattle
Calves
Sheep
Flour
Sugar meltings
PAPER AND PRINTING
Wood pulp and paper
Newsprint
Book paper
Wrapping paper
Fine paper
Paper board
Wood pulp, mechanical
Wood pulp, chemical
Paper boxes.
Newsprint consumption.—.
"I
64
57
64
86
82
62
68
64
40
134
143
117
93
91
95
80
98
136
92
102
106
99
<>80
118
79
94
116
72
91
122
124
73
61
74
93
84
75
81
77
54
146
158
121
92
94
96
85
99
136
91
87
110
103
77
117
122
78
97
144
124
78
64
79
97
89
76
81
75
60
149
165
117
87
88
83
91
99
138
93
74
110
101
81
114
84
100
121
75
90
146
129
103
71
60
119
122
114
96
97
93
97
104
159
110
102
80
114
90
92
124
77
92
155
125
72
64
72
98
93
90
105
79
63
123
136
96
91
92
88
94
94
156
96
77
113
105
79
118
94
91
130
79
93
166
127
64
56
64
97
92
89
105
83
55
122
136
96
83
83
75
88
96
154
85
83
109 j
100!
79
111 I
92
88
118
81
91
172
123
59
51
60
102
96
100
122
90
52
120
132
95
88
82
74
88
88
147
95
98
109
101
81
112
94
86
121
86
91
154
123
LUMBER:
Lumber cut
54
47
50
49
45
50
49
50
49
44
TRANSPORTATION EQUIPMENT:
Automobiles
Locomotives
Shipbuilding
LEATHER AND PRODUCTS
Tanning
Sole leather 1
Upper leatherCattle
Calf and kip.
Goat and kid
Boots and shoes
A
NONFERROUS METALS*
Copper (smelter)
Tin (deliveries)»
—
Cigars
Cigarettes
__.
130
117
30
38
35
40
4
88
97
96
84
26
5
90
82
86
83
36
84
68
113
79
76
53
105
76
• 73
53
64
43
v 62
65
10
116
100
94
79
57
67
113
92
68
69
118
100
79
84
123
109
83
92
116
117
85
93
126
105
84
99
146
102
65
85
82
118
84
111
90
77 ! '79
70 ! 77
126
105
82
119
76
76
96
90
117
73
70
109
112
73
72
104
70
92
89
77
149
186
67
108
105
97
73
75
61
128
68
173
144
177
70
106
102
97
88
91
68
121
74
157
149
188
69
107
94
99
94
96
71
132
78
174
152
191
76
112
96
100
98
102
74
331
83
169
161
205
71
113
100
102
107
111
81
134
89
171
163
211
71
109
95
100
123
127
95
137
88
177
161
207
76
111
90
91
126
130
96
133
87
171
162
208
80
107
98
84
112
116
88
122
77
156
165
213
78
110
96
80
90
92
73
118
81
148
161
210
66
108
92
77
79
82
57
118
73
151
161
209
71
104
95
76
74
77
54
112
77
137
156
202
73
102
93
73
71
74
52
114
75
142
85
93
111
77
93
110
73
89
110
76
72
112
77
84
121
70
61
107
59
59
49
70
65
102
51
60
49
65
40
122
11
72
65
80
65
74
74
57
66
122
122
46 | 55
59
49
58
46
71
91
116
42
76
75
71
122
27
68
54
75
51
68
63
7
11
246
115
78
87
76
79
81 i 80
61
93 i
132 !
85 j
62
71
126
78
60
66
114
79
53
62 I
103 i
97
101
95 !
90 |
127
86
91
86
86
119
160
203
74
108
106
109
151
188
69
109
104
101
77
80
58
119
86
147
129
88
164
79
78
14
112
107
91
85
18
144
81
83
89
Tires, pneumatic
Inner tubes.
TOBACCO PRODUCTS
40 ;
75
96
79
79
107
78
83
150
120
77
13
99
102
92
85
74
25
196
81
86
85
RUBBER TIRES AND TUBES
118 !
71
80
65
52
144
159
115
91
96
101
80
90
165
83
86
46
37
47
89
84
64
73
60
41
140
157
105
90
91
99
72
91
170
91
83
67
7
61
92
80
72
49
28
343
89
96
FUELS, MANUFACTURES:
Petroleum refining
Gasoline 1
Kerosene
Fuel oil *
Lubricating oil i
Coke (by-product)—
!
i
!
i
i
';
|
!
!
:
i
!
;
46
41
47
100
93
85
97
84
54
140
153
114
93
93
97
80
102
153
85
104
104
93
77
100
81
83
112
92
89
173
121
60
8
121
101
100
79
CEMENT AND GLASS:
Cement
Glass, plate
51
44
52
100
95
97
115
92
51
120
131
99
89
86
78
92
93
161
94
88
105
95
72
107
90
83
110
82
90
178
,
!
;
i
'
:
j
i
c 95
91
65
65
i!
114 :
104 i
101 !
87 ; 85
91
79
94 ! 141
141
97
106
« 89 i
72 !
65 I
65 !
77
79
81
MINERALS
COAL:
Bituminous-_
Anthracite
Petroleum crude
Iron ore shipments
Copper (mined)
Zinc
Lead
Silver
87
105
115
74
83
90
91
70
114
51
76 !
65
79
61
63
67
45
61
40
c
1
f
* Preliminary.
Coriected.
Without seasonal adjustment.
Includes also lead and zinc; see " Minerals."
Revised.
NOTE.—The combined index of industrial production is computed from figures for 57 statistical series (49 of manufactures and 8 of minerals)
most of which are shown in this table. 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 in the BULLETIN for February and March, 1927.
1
83
FEDERAL RESERVE BULLETIN
JANUARY, 1932
FACTORY EMPLOYMENT AND PAY ROLLS
[Index numbers of the Federal Reserve Board; adjusted to Census of Manufactures through 1927. 1923-1925 average=100]
Factory pay rolls
Factory employment
Without seasonal adjustment Adjusted for seasonal variation Without seasonal adjustment
Industry
1930
1931
Nov.
TOTAL—ALL MANUFACTURING INDUSTRIES
IRON AND STEEL AND PRODUCTS.
_
Steel works and rolling mills
Hardware _
- _
Structural iron work
Heating apparatus _
Steam fittings
Stoves
_
Cast-iron pipe
MACHINERY
._
_ _
» -.
_ _
Foundry and machine-shop products ._
Machine tools
Agricultural implements
Electrical machinery _
TEXTILES AND PRODUCTS
A. Fabrics
Cotton goods
_ __ _ _
Woolen and worsted manufactures
Woolen and worsted goods.
__
Carpets and rugs
Hosiery and knit goods...
Silk manufactures
Dyeing and finishing textiles __ _ _.
B. Wearing apparel
Clothing, men's . _ __
Shirts and collars
Clothing, women's .
Millinery
FOOD AND PRODUCTS
Baking
Slaughtering and meat packing
Confectionery
Icecream
_.
Flour
Sugar refining cane . .
PAPER AND PRINTING
Printing, book and job. __
Printing, newspapers and periodicals
Paper and pulp . _ _
Paper boxes
_ _
LUMBER AND PRODUCTS
T/iimbfir, sawmills
Lumber, millwork
Furniture
_.
TRANSPORTATION EQUIPMENT
Car building and repairing
Automobiles
__ _
Shipbuilding
LEATHER AND MANUFACTURES
Boots and shoes
Leather
..
. .
.
.___
CEMENT, CLAY, AND GLASS PRODUCTS
Clay products .
.
Brick, tile, and terra cotta
Pottery
Glass
-_
Cement
. . .
_
NONFERROUS METAL PRODUCTS
Stamped and enameled ware
Brass, bronze, and copper
...
CHEMICALS AND PRODUCTS
Chemicals and drugs
Petroleum refining
Fertilizers
.
RUBBER PRODUCTS
Automobile tires and tubes
Rubber boots and shoes
TOBACCO MANUFACTURES
Cigars and cigarettes
Chewing and smoking tobacco, snuff
MUSICAL INSTRUMENTS
Pianos and organs
_ .
Oct.
68.7
71.4
65.0
65.8
62.4
73.1
60.4
56.9
63.7
56.6
63.8
58.4
62.4
44.9
77.8
74.3
74.9
73.4
60.1
60.1
60.3
90.3
72.7
93.3
72.8
54.1
82.1
101.9
57.9
88.0
92.6
85.7
93.7
71.9
78.8
79.9
91.0
92.1
101.7
81.4
86.5
48.4
41.4
49.0
68.1
50.6
47.4
49.9
87.3
69.6
69.6
69.6
56.3
52.8
44.3
75.8
64.2
54.4
60.8
41.4
67.3
83.5
89.7
81.4
51.4
70.7
69.4 !
74 2
79.3
80.4
70.5
52.6
24.9
66.3
66.9
63.0
75.2
63.8
59.0
68.3
58.2
65.2
59.4
67.7
42.1
80.2
77.4
75.6
74.1
61.7
61.2
64.4
88.9
75.1
93.8
82.2
59.8
86.8
117.0
71.2
89.2
94.8
84.4
96.4
78.7
79.3
77.5
91.4
91.6
101.9
82.7
87.3
50.1
43.1
49.3
70.4
51.5
49.0
50.5
84.1
79.2
80.8
72.4
59.0
54.4
46.2
77.0
68.1
58.8
60.8
39.7
68.1
85.7
92.1
83.0
53.9
70.2
69.9
71 2
79.9
81.3
68.4
50.9
25.3
Nov.
81.0
79.8
80.9
73.5
97.1
72.7
69.6
75.6
68.7
84.7
77.4
101.0
93.6
97.4
80.1
79.1
75.4
64.3
63.9
66.3
92.0
85.8
104.9
82.4
55.0
88.2
125.4
68.4
93.6
99.6
90.5
96.0
79.9
84.1
85.5
98.4
103.0
105.9
88.2
93.7
61.6
55.6
59.2
80.3
64.9
59.4 j
67.9 1
97.5 !
76.9 !
76.7
77.8 !
70.4
68.9
62.6 :
86.1 i
73.4
70.7
70.9
48.6
78.5
98.6 I
100.7 !
99.8
80.9
72.6
70.8
77 7
87.1
89.2
70.6 !
111.7 i
39.3 |
1930
1931
Nov.
Oct.
Nov.
69.3
70.3
81.1
65.3
66.6
62.4
72.9
58.7
57.2
60.1
57.6 !
64.6
59.6
62.5
46.3
77.8
73.6
73.7
72.2
58.1
57.8
59.5
89.1
72.9 !
92.6
73.4
55.6
79.5
103.7
55.9
85.9
91.6
84.9
81.4
79.7
77 2
80.7
89.7
91.6
100.4
81.4
81.0
47.4
41.1
49.8
63.8
53.4
66.2
67.3
63.3
73.4
60.3
57.8
62.6
58.0
65.6
59.9
67.9
44.1
80.2
76.0
74.9
73.5
60.6
59.7
65.0
88.3
74.7
93.6
78.7
59.1
85.1
109.9
64.7
85.5
91.9
84.8
79.9
80.4
76.3
74.9
91.0
92.4
101.7
82.7
82.9
48.4
42.4
49.3
64.6
51.7
48.8
50.5
89.7
76.4
77.3
72.4
57.6
53.5
45.1
76.5
66.2
56.5
61.7
40.6
68.9
85.4
91.2
83.2
55.8
70.3
71.0
68.1
75.8
76.7
69.0
47.3
24.4
80.2
81.9
73.5
95.9
70.6
70.0
71.2
69.8
85.7
78.9
101.1
96.6
97.4
79.4
77.9
74.1
62.1
61.5
65.4
90.7
85.9
104.1
83.0
56.4
85.3
127.6
66.1
91.4
98.5
89.6
83.4
88.5
82.4
86.4
97.0
102.4
104.6
88.2
87.8
60.4
55.2
60.2
75.2
68.6
59.6
76.4
101.5
77.4
77.4
77.3
70.0
69.0
62.8
85.9
72.3
69.7
71.8
49.3
79.4
47.6
56.1
90.8
70.1
70. 3
69.1
55.9
52.8
44.4
75.7
63.2
53.7
61.4
42.2
68.1
83.1
88.0
82.2
54.4
73.3
74.2
70.3
74.8
75.4
70.1
47.8
23.4
983
98.8
100.8
85.6
75.2
75.7
73.7
82.0
83.6
70.2
100.9
37.0
Nov.
56.2
41.2
39.4
43.5
54.1
42.1
39.3
44.7
41.4
48.3
40.4 !
45.9 i
34.6 |
68.6
59.3
60.1
54.5
46.4
47.1
43.0
81.2
62.2
84.3
57.8
37.4
59. S
87.5
45.4
83.0
88.0
82.3
83.9
73.3
76.4
67.8
90.6
89.9
109. 7
69.3
81.7
34.4
28.9
34.9
46.3
45.2
43.9
42.3
81.4
47.0
43.1
61.1
40.9
34.2
26.6
54.1
52.8
43.7
48.8
33.0
53.3
76.4
78.8
77.9
42.9
50.1
48.0
58.7
64.5
64.9
62.0
46.4
19.6
NOTE.—For description of these indexes see BULLETIN for November, 1929 (pp. 706-716), and November, 1930 (pp. 662-677).
1930
1931
Nov.
Oct.
59.4
75.1
43.9
41.7
45.1
57.5
48.6
43.9
53.0
42.0
50.2
42.7
50.4
32.8
69.8
66.0
62.9
58.4
48.3
49.0
45.5
81.5
67.9
84.9
72.2
47.7
67.8
107.5
63.2
85.9
90.4
84.3
88.5
79.6
77.0
68.8
91.4
89.0
110.3
71.2
86.3
38.2
32.1
36.8
52.4
45.3
44.7
41.4
83.5
56.4
53.7
66.6
43.9
35.9
28.6
55.1
57.0
48.5
49.9
34.3
54.4
80.8
84.4
80.8
46.3
53.7
51.9
60.9
64.6
64.5
64.9
46.9
21.4
68.9
69.1
62.9
89.1
61.8
61.6
62.0
63.3
75.1
65.3
79.9
79.9
96.9
73.4
73.0
64.9
53.3
53.7
51.9
98.8
83.2
105.5
74.4
44.1
77.8
118.0
58.3
96.5
101.1
98.3
92.9
87.2
85.7
79.4
105.0
108.2
117.3
87.1
96.8
54.7
50.4
51.7
66.4
60.8
58.9
57.4
106.5
55.0
49.2
75.8
60.9
56.1
49.8
72.6
68.3
1
i
!
I
|
64.8
67.3
45.4
73. 6
96.1
93.4
103.2
77.9
58.7
56.8
66.4
76.8
78.0
67.4
92.8
38.5
84
FEDERAL RESERVE BULLETIN
J A N U A R Y , 193
WHOLESALE PRICES, BY GROUPS OF COMMODITIES
[Index of Bureau of Labor Statistics; 1926=100]
Other commodities
Foods
Metals
Chemilighting jand metal Building ,
materials products materials! drugs
Total
100.0
95.4
97.7
96.5
86.3
1926 (base)
1927
1928
1929
1930
1930—October
November..
December..
82.6
80.4
78.4
1931 - J a n u a r y . . .
February..
March
April
May
June
July
August
SeptemberOctober. __
November.
77.0
75.5
74.5
73.3
71.3
70.0
70.0
!|
'
ii
i|
!'
!•
|.
!
:
ii
70. 2 !
69.1 i
68.4 I
68.3 i:
100.0
99.4
105.9
104.9
88. 3
100.0
96.5
101.0
99.7
90.1
100.0 '
93.7 ;
93.2 1
92.6 !
85.1 ;
100.0
98.2
99.8
104.4
95.3
100.0
93.3
93.7
97.1
90.3
100.0
96.6
95.5
94.4
88.7
100.0
98.2
97.4
96.9
95.7
82.6
79.3
75.2
88.6
85.7
81.8
81.5
90.4
90.2
90.0
85.8
85.6
84.4
86.0
85.2
84.8
95.3
95.2
91.3
67.8
fi6. 9
73.5 j
70.1 .
70.6 !
70.1 i!
67. 1
65.4 i
64.9 ;
63.5 !
60.5 I!
58. 8
5S. 7
80.1 i
77.1 ,
76.7 i
75.6
72.9 ;
72.4
73.1 i
73.7 i
72.9 !
72. f> ; !
70.9
77.8
77.1
75.6
74.2
73.2
71.9
71.8
72.3
72.0
71.4
71.8
89.3
88.9
89.0
88.7
87.8
87.4
87.5
87.1
87.2
86. 5
80 2
82.9
81.8
81.9
80.9
78.4
77.5
75.8
75.4
74.9
74.3
74.0
83.6
82.2
81.9
80.1
79.1
77.9
77.3
75.5
74.8
74.1
74.7
91.1
90.8
90.8
90.8
89.2
88.6
88.0
87.5
84.7
83.2
83.1
64.7
63.9
64.7
63.9
62.8
61.8
61 0
58.5
58.4
r.9 0
59.7
Hides and skins
Leather
Boots and shoes
Other leather products
44.8
67.0
67.3
44. 2 44. 3
61.0 57.6
65.4 ; 64.2
51.3
55.7
63.1
83.3
83.6
70.8
83.7
82.0
70.8
80.9
79.9
70.9
80.9
73.4
69.7
82.5
76.0
68.8
84.8 ; 86.4
73.6 71.1
67. 6 67. 7
80.9
67.7
68.5
64.4
90.8
95.1
102.4
57.7
89.0
95.0
102.0
62.1
88.4
94.9
102.0
62.0
88.4
94.8
101.6
65.5 72.7
87.8 89.8
94.7 93.5
101.3 101.3
69.1
90.3
93.5
101.3
79.7
51.7
82.3
57.8
77.3
50.1
82.1
57.5
76.9
48.8
81.7
59.0
76.5
47.0
79.7
57.4
75.7 i
45.2
77.3
55.6 i
73.9
44.0
76.4
55.9
72.6
43.8
75.9
53.1
72.4
45.0
75.3
52.1
89.6
89.1
83.9
97.0
53.3
89.6
89.1
83.8
95.4
51.1
88.9
88.1
83.8
95.8
50.4
88.9
87.8
83.8
95.8
50.2
88.2
85.8
83.7
94.6
41.8
84.4
83.7
96.1
37.4 j
88.8
87.6
83.2
83.9
83.7 i 81.5
99.0 ! 101.9
35.9 ' 30.7
90.8
83.5
81.5
103.5
30.3
88.3
68.4
94.9
99.8
98.0
88.0
69.7
94.9
99.5
95.2
88.1
67.4
94.7
98.7
95.0
88.4
66.1
94.7
98.0
95.0
88.1
67.1
94.7
98.0
95.0
65.1
94.7
98.6
95.0
j 80.8 i 80.2 | 80.1
81.8
I 82.3 : 82.5
91.1
! 91.7 I 91.7
81.7 ! 81.7
81.7
78.1 | 75 9
74.4
I 98. 0 ! 97.3 97.8
78.1
81.6
90.6
81.7
72.4
97.1
76.0
81.7
90.5
83.0
70.2
95.5
73.2
81.6
87.9
84.3
70.9
95.6
85.0
65.0
81.1
89.1
-
H O U S E - F U R N I S H I N G GOODS:
Furniture
Furnishings
MISCELLANEOUS:
Cattle feed
Paper and pulp.
Automobile tires
Other miscellaneous..
Nov.
Dec.
Jan.
77.0 ; 72.1
88. 0 • 82.4
86.4 ; 86.3
!
99.6 ! 98.7
99. 2 96. 7
79.3 ! 79.8
64.0
77.7
85.4
64.0
76.3
78.1
62.4
75.2
76.0
60.4
69.6
73.7
89.4
95.8
91.4
89.2
74.5
78.4
i 83. 6 75.1 69.4
! 96. 7 93. 3 91.5
: 100.3 i 100.3 97.7
; 104. 2 | 104. 2 104.2
85.2
88.4
73.4
82.8 ' 81.6 | 81.9
55. 4
52. 1 | 50. 7
84.6 i 83.6 83.2
61.3 i 59.0 57.9
F U E L AND LIGHTING MATERIALS:
89.1
89. 2
83.9
101.3
62.0
-
M E T A L S AND METAL PRODUCTS:
Sept. | Oct.
94. 2
98. 2
100.5
105. 0
Cotton goods
_.
Silk and rayon
Woolen and worsted goods._.
Other textile products
Anthracite coal
Bituminous coal
Coke
Gas
Petroleum products
Nov.
56.0 ! 49.0
59.5 ! 59.6
70.3 ''• 64.1 61.9 ! 63.0
73.4 I 71.5 70.8 I 71.3
T E X T I L E PRODUCTS:
Chemicals
Drugs..
Fertilizer materials
Mixed fertilizers
1931
59.3
70.7
74.2
-
H I D E S AND LEATHER PRODUCTS:
CHEMICALS AND DRUGS:
88.6
86.6
87.4
87.3
87.3
87.8
89.2
88.5
84.8
82.2
81.3
Sept. I Oct.
Butter, cheese, and milk
Meats
_
Other foods
Lumber..
Brick
Cement
Structural steel
Paint materials
Other building materials
:
Aug.
FOODS:
BUILDING MATERIALS:
79.0
100.0
89.9
83.0
80. 5
73.4
June ! July
F A R M PRODUCTS:
Iron and steel
Nonferrous m e t a l s . . „ .
Agricultural implements
Automobiles
Other metal products
8o.i :
1930
Subgroups
Grains
Livestock and poultry
Other farm products
HouseMiscelfurnishing goods laneous
!
i
!
i
89.6
89. 2
83.9 i
99.7 |
59.4 !
89.5 ! 88.6
71.2 i 67.8
94.9 i 94.9
| 101.6 100. 2
98.4 ;
i 98.4
!
•
90.9
66.8
83.1
92.6
89.6
66.8
83.6
92.9
89.2
66.3
82.1
91.1
89.1
65.5
81.4
90.6
87.0
65.1
81.4
! 96.5
i 94.4
96.5
94.2
96.5
94.0
95.5
87.6
95.5
I 93.6
83.5
17.1
52.0
93.8
89.6
83.5
16.9
52.0
91.5
83.0
83.5
18.6
51.3
88. 9
78.2
83.6
18.6
51.3
86.9
.-.|
.-!
-!
j
!
i
90. 4
87. 3
75.0
83. 6
17. 1
45. 7
86. 1
Feb. j Mar. j Apr. j May
95.5
86.7
71.6
83.1
16.1
45.7
85.1
78.4 79.1
74.4 71.3
69.7 | 70.1
62.6
88.1
94.8
101.3
|
I
I
!
I
58.6
83. 4
93.5
101.0
!
!
!
!
50.0 I
80. 7 I
93.1
101.0
67.7 ;
44.8 ; 43.9
73.5 i 72.4
50.8 I 47.3
I
92.2
94.3 : 94.2
83.7
83.9 | 83.6
81.5
81.5 i 81.5
103.2 103.4 | 100.8
37.5
38.9 | 39.2
64.7
43.9
71.9
47.4
86.0
53.5
92.1
99.4
90.5
44.8
75.3
50.9
94.2
83.7
81.4
42.5
i
!
i
|
87.2
60.6
94.7
98.6
94.4
:
;
i
i
86.9
58.9
94.6
98.6
94.4
87.1
59.4
94.5
98.9
92.5
86.6
58.0
94.5
98.9
92.1
86.6 i 86.2 |
56.8 ! 53.7
94.5 ! 92.3
99.7 I 99.7
90. 5 I 90.5
i
I
74.2
81.5
84.1
84.3
73.0
95.4
73. 3 |
81.0 i
81.0 i
84.3 |
72.5 j
94.2 !
68.4
80.8
79.7
84.3
70.5
93.2
' 67.8
i 80.8
;: 77.7
84.3
;
70.1
I 91.7
66.3
80.5
75.8
84.3
69.5
88.7
66.0
80.4
75.8
81.7
66.8
89.3
65.5 |
79.8 !
75.8 i
81.7
64.9
89.0 |
64.5
79.9 |
84.8
64.6
80.8
88.3
83.3
63.0
80.6
83.5
81.9 ;! 80.2 ' 80.1
62.1 i 61.6
62.8
80.5 j 79.8 ; 78.7
82.8 .. 82.4 \ 80.2
95.5
95.5; 93. 5 j 92.8 , 92.4
86.7 ; 86.7 ! 85.5 | 85.0 j 84.3
I
82.1
81.2 | 67.9 ! 61.1 : 55.8
82.3
81.4 ; 81.3 | 80.3 i 80.1
16.0
13.3 i 13.7 : 13.3 j 13.2
45.7
45.7 i; 45.7 I 45.7 I 45.7
86.3
84.9
84.0
85.9
78.5
61.4
74.4
78.7
77.8 j
91.9
83.7
50.8
30.1
11.2
45.7
75.5
87.5 I
49.0
78.8
92.5
101.0
75.1 I
64.2
79.5
74.6
81.7
64.6
88.1
77.7 !
61.1 i 61.1
74.2 ; 70.2
77.6 ! 77.2 |
78.8
60.7
70.1
77.7
87.3
82.4
84.7 i
82.0 i
84.5
81.8
44.4
80.3
10.6
45.7
76.9
|
80.4 '
10.2 I
45.7 !
77.9 j
59.8
80.8
9.6
45.7
77.7
81.7
63.8
88.6
Back figures.—For indexes of groups, see FEDERAL RESERVE BULLETIN for March 1931 (p. 137); of subgroups, see FIDKEAL RESERVE BULLETIN
for April, 1931 (p. 197) and bulletins of the Bureau of Labor Statistics Nos. 473, 493. and 521.
JANUARY,
85
FEDERAL RESERVE BULLETIN
1932
BUILDING CONTRACTS AWARDED, BY TYPES OF BUILDING
[Value of contracts in millions of dollars. Figures are for 37 States east of the Rocky Mountains, as reported by F. W. Dodge Corporation]
j Public works and |
January
February
March
April
May.
June
July
August
September
October
November
Year to date
W/,I1/mf!™i
|4, 273. 7 J2,956.0 j
BUILDING PERMITS ISSUED, BY DISTRICTS
[Value of permits in thousands of dollars]
[Value of contracts in thousands of dollars. Figures for 37 States east
of the Rocky Mountains, as reported by the F. W. Dodge Corporation]
Federal reserve district
November
'
---
---
Total (11 districts)
1931
October
November
16,346
44,897
6,621
14,479
19,644
5,859
21,190
5,996
7,161
4,411
4,591
24.126
101,345
23,066
13,159
23,342
11,961
18,606
7,538
5,754
4,822
8,376
20,993
70,835
12,651
37,488
15,067
15,851
39,443
15,530
5,694
11,004
9,017
151,196
242, 094
253, 574
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago.
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
r
November
Boston
New York
Philadephia
Cleveland
-Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
201
487
130
191
139
117
317
117
66
NoOcto- vember
ber
1931
2.769
17,196
4,068
4,057
1,718
3,208
5,582
3,870
55, 261
3, 262
13, 283
5,199
6,425
2,571
2,353
16, 380
3,357
125
130
160
91
4,406
16,496
8,924
10, 554
1,365
2,891
14,670
2,498
1,493
1,055
1,930
4,377
70, 660
681
181
287
250
1,619
1,726
3,801
2,195
2,362
2.031
60, 660
146
103
2,926
32,133
3,684 i
5,405 !
4,019 !
1,763
4,488 :
1,708 i;
1,306
3,194 |
3,163 i
8,545 i
I
168
52,422
72,334
4,627
48, 784
8,916
6,992
5,242
1,774
10,004
1,673
1,600
3,464
3,316
' 12,971
r 109,362
1930
November
m
2,120
21,923
2,201
2,592
3,661
2,883
4,839
857
1,188
1,265
2,652
6,241
1930
October
411
93
169
121
110
304
92
48
i
;
1
!
;
:
!
:
14
22
14
12
15
15
19
5
9
14
9
20
i
BANK DEBITS
November
187
403
165
255
92
131
353
126
108
| October | N o ™
[Debits to individual accounts. In millions of dollars]
Liabilitie s
1930
1931
Federal reserve district
!
1930
Revised.
COMMERCIAL FAILURES, BY DISTRICTS
[Amounts in thousands of dollars; figures reported by R. G. Dun Co.]
dumber
Number
of cities
Federal reserve district
1930
1931
Total
All other
| 331. _
I 336.7 !
I 253.6 >
BUILDING CONTRACTS AWARDED, BY
DISTRICTS
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas.
I
398
5,495
2,497
4,401
New York City
Outside New York City
Federal reserve district:
Boston
New York.
Philadelphia
ClevelandRichmond
Atlanta
Chicago.
St. Louis.
Minneapolis.
Kansas City
Dallas
San Francisco
Total
2,326
23,192
1,821
2,171
699
872
4,884
913
673
1.179
564
2,882
86
FEDERAL RESERVE BULLETIN
JANUARY, 1932
DECEMBER CROP REPORT, BY FEDERAL RESERVE DISTRICTS
[Based on estimates, by States, for December 1, as made by the Department of Agriculture]
[In thousands of units]
Corn
Federal reserve district
Production,
1930
Total wheat
Estimate,
Dec. 1,
1931
Production,
1930
Boston.
New York....
Philadelphia..
Cleveland
Richmond
Atlanta
_.
Chicago
St. Louis
MinneapolisKansas City..
Dallas..
San Francisco.
Bushels
7,708
19,952
25, 760
104,861
90, 428
115,237
741,908
191, 530
254,113
416,925
83, 621
8,142
Bushels
7,929
25,837
55, 305
206, 456
146, 866
165, 412
880, 844
382,010
173, 273
395, 516
109, 442
7,973
Bushels
64
4,921
20, 021
33,780
25, 079
2,271
62, 416
44, 323
212, 644
307, 627
32, 544
112,470
Total—
2, 060,185
!, 556,863
858,160
Oats
Federal reserve
district
Boston
New York
Philadelphia ._
Cleveland
Richmond
Atlanta
Chicago
_.
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
Total
Produc- | Estimate,
tion,
j Dec. 1,
1930
i
1931
Bushels
Bushels
7,322
6,359
36,130 j
25,819
20,451 i
17, 687
75,762 j
75, 247
17, 674
23, 671
8,091 !
14, 558
539,401 i
469,985
50,930 i
63, 234
308,887 !
183, 049
151,236 !
147, 711
35, 580 i
63, 027
26,300 i
21, 795
1, 277, 764 | 1,112,142
Tame hay
Production,
1930
Tons
3,106
4,789
2,142
3,104
1,707
1,500
13, 072
3,988
8,485
8,650
817
12,103
Tons
3,346
5,563
2,304
4,742
2,928
2,182
12,011
5,467
7,039
7,209
991
10, 451
Production,
1930
Estimate,
Dec. 1,
1931
Production,
1930
Estimate,
Dec. 1,
1931
Bushels
65
6,197
18, 764
56, 086
30,194
4,612
77, 431
66,474
Bushels
Bushels
Bushels
Bushels
Pounds
400, 897
59, 272
90,190
4,557
425
200,829
9,868
143
39,840
3,687
326
73,146
4,025
165
22, 766
892, 271
601,840
787, 465
256, 320
104, 806
White potatoes
! Pounds
39,186
1,463
43,813 I
1,179 i
2
65
185
187
254
6,012
18, 577
55, 832
30,194
4,612
73,744
66,148
8,943
396,872
59,107
67, 424
Estimate,
Dec. 1,
1931
189,743 •
817,651 !
213,119
52,956 |
306,896 •
6,048 i
3,805 !
64
170
170
254
4,751
19,851
33,526
25, 079
2,271
57, 859
43, 898
11,815
297, 759
32, 401
72, 630
259, 366
676, 406
166, 710
48, 544
407, 708
5,017
64, 233 I 1, 635, 210 , 1, 610, 098
1
Includes 7,000 bales grown in miscellaneous territory.
NOTE.—Figures for 1930 are as revised in December, 1931.
Production,
1930
Spring wheat
Estimate,
Dec. 1,
1931
Tobacco
Estimate,
Dec. 1,
1931
Winter wheat
Production,
1930
Bushels
53,199
27,185
18, 081
15,161
28,419
10, 062
37, 016
11,141
40, 457
39, 734
5,625
47,130
333, 210
Estimate,
Dec, I,
1931
Bushels
58, 475
32, 651
25, 212
19, 864
32, 482
14, 893
51, 022
12, 545
49,934
27, 387
5,993
45, 790
376, 248
Cotton
Production,
1930
Estimate,
Dec. 1,
1931
Bales
Bales
1,818
3,713
1,833
3,593
i 2, 289
2 3,668
4,849
403
1,283
6,253
288
13,932
16,918
Includes 9,000 bales grown in miscellaneous territory.
INDEX
Acceptances:
Page
Buying rates of Federal reserve banks...
17
Held by Federal reserve banks
_.
11,12,15,67,68
Held by group of accepting banks...
_.
15
Held by member banks
__
14
Open-market rates on
_._
17
In foreign countries
_
62
Outstanding
_
15,72
Adjusted-service certificates, discount of bills secured by
12,67
All banks in the United States:
Condition of, on call dates
14,78-81
(See also Deposits; Loans and investments, etc.)
Annual report of the Bank of Java
49-51
Bailey, W. J., retired as governor of Kansas City bank
6
Balance sheets:
Bank of Java
51
Bank for International Settlements
57
Foreign central banks
_
_._
_. 58-60
Bank debits
85
Bank suspensions
16,73-75
Bankers' balances
71
(See also Review of month.)
Bills bought. (See Acceptances.)
Bills discounted, holdings of, by Federal reserve banks.. 11,12,67,68,69
Borrowings of member banks at reserve banks
11,
12,15,16,17, 67, 68, 69,72
Branches of banks in the United States
._
14
Brokers' borrowings
18
Brokers' loans
_
15
Building statistics
19,85
Business conditions, national summary of
10
Business failures...
_
_
85
Call loans, open-market rates on
17
Capital issues, domestic and foreign
18
Charts:
Federal reserve bank credit and factors in changes
1
Bankers' balances
2
Loans and investments of member banks
2
Federal reserve bank discounts, by districts
6
Shipments and receipts of American currency to and from
Europe
8
Classification of loans and investments of member banks
14
Commercial failures
85
Commercial paper:
Outstanding
_
_
_
_
15
Purchased by member banks
14
Rates on
_
_
_
_. 17,70
Conference of South American central banks
43-49
Cost of living
64
Crop report
86
Currency:
Shipments to and from Europe
7-9
Treasury
11,12
Debits to individual account
85
Department-store sales and stocks
20
Deposits:
All banks in the United States..
14,78-81
All member banks
13,69,70
Central banks in foreign countries
58-60
Commercial banks in foreign countries
61
Federal reserve banks
67,68,69
Nonmember banks
14
Public moneys exempt from reserve requirements; ruling
65
Reporting member banks.._
71
Suspended banks
73-75
Directors of Federal reserve banks, election of
5
Discount rates:
Central banks in foreign countries
62
Changes in
5,62
Federal reserve banks
_
__
17
Due to Federal reserve banks from foreign banks
12,67,68
Earnings and expenses of member banks
76,77
Eligible assets held by member banks
16
Employment in factories, index of
19,83
Factors of increase or decrease in reserve bank credit.
11,12,13
Failures:
Bank.
_...
_
16,73-75
Commercial
85
Federal intermediate credit banks, bills discounted for
12,67
Federal land bank bonds purchased by reserve banks
12,67
Federal reserve bank credit and factors in changes..
11,12,13
(See also Review of month.)
Federal reserve notes
12,67,68,69
Float, reserve bank
_
11,12,67
Foreign banks, due from, to Federal reserve banks.
12,67,68
Foreign central bank statistics
58-60
Foreign commercial bank statistics
61
Foreign exchange rates:
Monthly averages
55-57
Yearly averages, 1923-1931
54
Foreign securities:
Held by member banks...
14
Issued
18
Prices of
63
Page
Freight-car loadings
19,20
Gold:
Analysis of changes in stock of
___
12
Circulation
_
^
12
Earmarked
_
_.
12
Imports and exports—
Foreign countries.
_
53
United States..
_
12,53
Production
12
ReservesCentral banks in foreign countries
52
(See also Review of month.)
Federal reserve banks.
_
_
_
_ 67,68
Stock, monetary, of United States
_
__
11,12
Government note issues and reserves, foreign countries
61
Hamilton, George H., appointed governor of Kansas City b a n k . .
5
Imports and exports:
GoldForeign countries
_
_.
53
United States
_. 12,53
Merchandise
___
20
Interbank loans:
Rates on
___
70
Volume of.
_
16
Interest rates. (See Money rates.)
Law department_
__
65
Loans and investments:
All banks in the United States..._
_. 14,78-81
Percentage distribution
_
72
All member banks
__
14,78
Classification on call dates
14
Central banks in foreign countries
58-60
Commercial banks in foreign countries
61
Nonmember banks
14, 72,78
Reporting member banks
15,71
Maturity distribution of bills, etc
72
Member bank borrowings at reserve banks.. 11,12,15,16,17,67,68,69, 72
Member bank reserve balances
11,13,67,68
(See also Review of month.)
Membership in par-collection system.
72
Merchandise imports and exports
20
Monetary gold stock of the United States
11,12
Money in circulation
11,12
Money rates:
Charged customers by banks
_.
17,70
Foreign countries
62
In New York City
—
17
Municipal warrants:
Maturity distribution
72
Purchased by Federal reserve banks
12,67
National banks, condition of, on call dates. _
80
Nonmember banks:
Bills discounted for, secured by adjusted-service certificates.. 12,67
Branches operated
14
Deposits
—
11,14
Loans and investments
14,72,78
Par list, number of banks on
72
Par value of foreign currency
54,57
Pay rolls in factories, index of
19,83
Paulger, L. H., appointed chief of division of examinations
5
Prices:
Commodity (wholesale), index of—
Foreign countries
64
United States
19,64,84
Food, index of.__
64
Securities, index of
18,63
Silver
54,57
Production of manufactures and minerals, index of
19, 82
Reparations, report of special advisory committee on
21-43
Reserve ratios of Federal reserve banks
68,69
Reserves:
Central banks in foreign countries
52,58-61
Federal reserve banks
67,68,69
Member banks
11,13,69,71
New York City banks
13
Public moneys exempt from reserve requirements
65
Review of the month—Recent banking developments
1-5
Security prices, index of:
Foreign countries
63
United States...
- 18,63
Silver, price of
54,57
South American central banks, conference of
43-49
State banks, condition of, on call dates
81
Treasury currency
H> 12
Unexpended capital funds of reserve banks
11
United States securities:
Held by Federal reserve banks
_—
- 11,12,67,68
Held by member banks
--- 14,16
Yield on
17
Wholesale prices. (See Prices.)
87
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