Full text of Federal Reserve Bulletin : July 1916

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FEDERAL RESERVE
BULLETIN




ISSUED BY TEE

FEDERAL RESERVE BOARD
AT WASHINGTON

JULY, 1916

¥/ASHINGTON
GOVERNMENT PRINTING OFFICE
1916

FEDERAL RESERVE BOARD.
EX OFFICIO MEMBERS.

CHARLES S. HAMLIN, Governor.

FREDERIC A. DELANO, Vice Governor.
WILLIAM G. MCADOO,

Secretary of the Treasury,
Chairman.

PAUL M. WARBURG.
W. P. G. HARDING.
ADOLPH C. MILLER.

JOHN SKELTON WILLIAMS,




Comptroller of the Currency.

H. PARKER WILLIS, Secretary.

(On leave of absence.)
SHERMAN ALLEN, Assistant Secretary and Fiscal
Agent.
M. C. ELLIOTT, Counsel.




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

In sending the Bulletin to others the

Board feels that a subscription should be required.

It has

accordingly fixed a subscription price of $2 per annum.

Single

copies will be sold at 20 cents.

Foreign postage should be added

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Remittances should be made to the

Federal Reserve Board.

Member banks desiring to have the

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

in

TABLE OF CONTENTS.
Page.

Work of the Board
,
Meaning of '' par'' collection
Deposit of gold bullion
Clearing circulars issued by Federal Reserve Banks
Leave of absence granted to Gov. Strong.
Cost of gold settlement fund
New national-bank charters
Conversion of United States bonds
Clearing house taken over by Boston bank
Assessment levied for expenses of Federal Reserve Board
Discount rates in effect
•
Gold settlement fund
Amendments to Act proposed by Federal Reserve Board
Commercial failures in May
Fiduciary powers granted
Acceptances to 100 per cent
Chart showing individual and bank deposits, taken from calls of Comptroller
Informal rulings of the Board
Law department
Business conditions throughout the 12 Federal Reserve districts
Distribution of discounts
Acceptances
Federal Reserve Bank statements
•_
(jold imports and exports
Earnings on investments of Federal Reserve Banks




IV

*

,
..

309
310
311
312
315
315
316
316
317
318
319
320
323
327
328
328
328
329
330
333
355
361
364
368
370

FEDERAL RESERVE BULLETIN
VOL.

JULY 1, 1916

2
WOKK OF THE BOARD.

During the early, part of the month of June
members of the Federal Reserve Board were
frequently in attendance at meetings of State
associations or at conferences with bankers
away from Washington. Mr. Warburg and
Mr. Harding attended the meeting of the New
York State Bankers' Association at Atlantic
City on June 8 and 9. Mr. Delano and Mr.
Warburg visited the Federal Reserve Bank of
New York for a conference with its officers on
June 12. • Gov. Hamlin addressed the National
Association of Credit Men at Pittsburgh, Pa.,
on the morning of June 15 and spoke before the
Robert Morris Club on the afternoon of the
same day. On June 21 Gov. Hamlin made an
address before the South Carolina Bankers7
Association at Hendersonville, N. C, and on
June 24 before the Virginia Bankers' Association at Old Point Comfort, Va.
The Board's attention has been particularly
focused upon the Clayton Act and the recent
amendment thereto, known as the Kern amendment. The Board has practically completed,
with the assistance of its counsel, a plan of procedure to be adopted by those seeking exemption under the act. While the Clayton Act is
not effective until October 15, many inquiries
in regard to its exact application have already
been received.
Applications were received from Federal
Reserve Banks to June 20 for the conversion
of United States 2 per cent bonds into equal
amounts of 3 per cent thirty-year bonds and 3
per cent one-year notes. Federal Reserve
Banks were authorized to convert in the
aggregate not to exceed $7,500,000 of bonds,
each in proportion to its capital, the aggregate
conversion for the calendar year being $30,000,000. The further conversion of $7,500,000
will be made October 1, 1916. Those banks




No. 7

which have not elected to convert their allotments on either of the two previous dates may
take up the entire amount on October 1.
When the Federal Reserve Board, on March
6, 1916, approved the petition of banks in
F airfield County, Conn., to be attached to the
Federal Reserve Bank of Boston, it left open
action on the request of certain other banks in
Connecticut which also desired to be transferred. At a meeting of the Board on June
3 the question of giving a rehearing to these
other banks was further considered and it was
decided that while the Board was willing to
give such a hearing some time in June, it was
preferable that no definite action be taken for
several months. One of the reasons for a postponement, which influenced the Board, was
the fact that the new clearing and collection
plan is soon to go into operation and it seemed
reasonable that the Board should give the
Federal Reserve Bank of Boston an opportunity to satisfy the convenience of the petitioning Connecticut banks.
Mr. Vance C. McCormick, of Harrisburg,
Pa., resigned on June 17 as a Class C director
of the Federal Reserve Bank of Philadelphia,
to take effect immediately. The reason for
Mr. McCormick's resignation was his election
as chairman of the Democratic National Committee, his duties in this capacity being of a
political nature and therefore inconsistent with
his remaining a Class C director.
Mr. W. J. Davis, of Jackson, Miss., a Class C
director of the New Orleans branch of the
Federal Reserve Bank of Atlanta, died on
June 12.
Preparations for the operation of the Board's
clearing and collection plan on July 15 have
gone rapidly forward. All of the Federal Reserve Banks have issued their circulars to member banks supplementing the circular sent out
by the Board under date of May 1, 1916. Op309

310

FEDERAL RESERVE BULLETIN.

position to the clearing plan still exists, but the
Board believes that its actual operation will
prove entirely satisfactory and largely overcome the natural prejudice and opposition
which necessarily exists in some quarters.
One of the very interesting developments
in connection with the plan is the completion
of arrangements on the part of the Federal
Reserve Bank of Boston to take over the work
of country clearing in New England heretofore
conducted by the Boston Clearing House
Association, an organization which was not
only the first of its kind but which has a long
and honorable career to its credit. This work
will, on and after July 15, be incorporated in
and carried on by the Federal Reserve Bank of
Boston, which will take over and assume the
lease of the premises occupied by the Boston
Clearing House with its staff of employees. A
more complete discussion of the action taken
by the different banks in working out the
clearing and collection problems will be found
on another page.
Representatives of clearing houses in New
York, Chicago, St. Louis, Kansas City, Dallas,
Atlanta, Cleveland, Minneapolis, and Philadelphia met in Chicago on June 22 to consider
changes in the present method of handling
check collections in order to conform to the
Board's clearing and collection plan, which
will go into effect on July 15. At this meeting
a committee of five was appointed, and a conference held in Washington on Tuesday, June
27. The committee was composed of G. M.
Reynolds, of Chicago; Walter E. Frew, of
New York City; F. O. Watts, of St. Louis;
J. W. Perry, of Kansas City; and J. K. Ottley,
of Atlanta.
The Federal Reserve Agents, who are also
the chairmen of the several boards of directors
of the 12 Federal Reserve Banks, held an
important meeting in Washington beginning
with May 29 and continuing through the week.
All of the 12 Federal Reserve Agents were
present at the meeting.
Members of the Federal Reserve Board met
with the agents and there were several conferences at which the Board and the conven-




JULY 1, 1916.

tion of agents discussed problems of common
interest. Among the questions discussed were
note issues, the cost of Federal Reserve note
issue and redemption, the relations of Federal
Reserve Banks with member banks and the
public, policies to be followed by Federal
Reserve Banks, and the duties of the agents
themselves. The meeting adjourned on Friday
evening, June 2. It is expected that another
conference with the agents will be held in
November.
The Meaning of "Par" Collection.

The Federal Reserve Board has been asked
to state what it means by the expression
collection of checks at "par." In the Board's
Circular No. 1, on the subject of clearing, dated
May 1, the following expressions were used:
"Each Federal Reserve Bank will receive at
par from its member banks checks drawn on all
member banks, whether in its own district or
other districts. It is also proposed to accept
at par all checks drawn upon nonmember banks
when such checks can be collected by the
Federal Reserve Banks at par.
"Each Federal Reserve Bank will receive at
par from other Federal Reserve Banks checks
drawn upon all member banks of its district
and upon all nonmember banks whose checks
can be collected at par by the Federal Reserve
Bank.
"Immediate credit entry upon receipt subject to final payment will be made for all such
items upon the books of the Federal Reserve
Bank at full faee value, but the proceeds will
not be counted as reserve nor become available
to meet checks drawn until actually collected,
in accordance with the best practice now prevailing.
*
#
#
*
*
" I t is manifest that items in process of collection can not lawfully be counted as reserve
either by a member batik or by a Federal
Reserve Bank. Therefore, should a member
bank draw against such items the draft would
be charged against its reserve if such reserve
were sufficient in amount to pay it; but any
resulting impairment of reserves would be
subject
to all the penalties provided by the
Act.5'

JULY 1,

1916.

FEDERAL RESERVE BULLETIN.

It should be sufficiently clear from the above
excerpts that checks, even though collectible
at par and given immediate credit entry on the
books of the depositing bank, are not funds immediately available to be drawn against, and,
of course, this applies with equal force to each
deposit account with a member bank. Thus,
if a customer deposits with his bank a number
of checks, some of which it will take two, four,
or six days to collect through a Federal Reserve
Bank, it is obvious that he is entitled only to
be given credit deferred by the length of time
it takes to collect the items, or, if he asks for
immediate credit in available funds, he should
pay something for the privilege.
However, as was stated in the June Bulletin,
page 264, "The Federal Reserve Board has not
yet laid down any rule as to what charges a bank
may make against its customers, but there is
no intention at all that a member bank shall
collect its customers7 checks at a loss to itself;
that is to say, without some fee to cover cost
of collection."
The expression printed upon some checks
/'Collectible at par through Federal Reserve
Bank/ 7 means that the check is collectible at
full face value through the Federal Reserve
Bank, but if it is desired to use a check as cash
the element of time in transit must be paid for.
Under the principles above enunciated, a
member bank will be authorized to charge its
customers the amount per item charged by the
Federal Reserve Bank for collecting their checks,
say 1J or 2 cents per item, plus an interest
charge if funds are advanced before they have
been collected.
By providing that the Federal Reserve
Banks shall act as clearing houses for all member banks, the Act in effect establishes 12 focal
points at which all checks can be centered and
collected, and it is fully expected thereby to
create a more efficient machine for check collections than has ever existed in the country
before. The direct routing of items which it is
expected to establish in connection with this
plan, should very considerably reduce time in
transit, and last, but not least, the actual cost
of the service rendered should be less to the
banks, and, hence, to their customers.




311

Deposits of Gold Bullion.

An act of Congress permitting the Secretary
of the Treasury, in his discretion, to receive
deposits of gold bullion and to hold gold bullion
and foreign coin up to two-thirds of the total'
amount of gold certificates outstanding, was
approved by the President on June 12, 1916.
The text of the amendment is given below:
Be it enacted by tlie Senate and House of Representatives of the United States of America in
Congress assembled, That section six of an act
to define and fix the standard of value, to maintain the parity of all forms of money issued or
coined by the,,, United States, to refund the
public debt, arid for other purposes, approved
March fourteenth, nineteen hundred, as
amended by the act approved March second,
nineteen hundred and eleven, be, and the same
is hereby, further amended by striking from the
last proviso
of said section six the word " onethird77 and inserting in lieu thereof the word
"two-thirds," making the last proviso of said
section six read as follows:
"And provided further, That the Secretary of
the Treasury may, in his discretion, receive,
with the Treasurer or any Assistant Treasurer
of the United States, deposits of gold bullion
bearing the stamp of the coinage mints of the
United States, or the assay office in New York,
certifying their weight, fineness, and value, in
amounts of not less than $1,000 in value, and
issue gold certificates therefor of the description herein authorized. But the amount of
gold bullion and foreign coin so held shall not at
any time exceed two-thirds of the total amount
of gold certificates at such time outstanding.
And section fifty-one hundred and ninety-three
of the Revised Statutes of the United States is
hereby repealed."
In urging the change of the law the Secretary
of the Treasury submitted to Congress the following explanation:
This act permits the issuance of gold certificates against gold bullion and foreign gold
coin to the extent of one-third of the total gold
certificates outstanding, the other two-thirds
being secured by gold coin stored in the vaults
of the Treasury Department.
There is at present a total of gold coin so
held amounting to approximately $1,000,000,000 and the amount of gold bullion held as a
reserve against gold certificates has reached
the prescribed one-third owing to the heavy
influx of gold since the commencement of hostilities in Europe.

312

FEDERAL RESERVE BULLETIN.

The Treasury is placed in the position of
having to coin upward of $10Q;00G;0GQ in order
to offset the bullion receipts, and the expense
of such coinage is deemed totally unnecessary
when one considers that the amount of gold
' coin used as a circulating medium is infinitely
small compared to the stock of gold coin stored
in our vaults. Again, under the present provisions , it will be necessary to immediately turn
into coin all further bullion received, or at least
two-thirds of it, to permit the issuance of additional gold certificates with which to pay for
the bullion, as payment is almost invariably
requested in certificates.
The cost of coining $100,000,000 in gold is
approximately $125,000, and there is no actual
demand for such additional coin for any purpose other than to store it in our vaults to be
held as a basis for further issue of gold certificates. It might just as well be stored in the
form of fine gold bars, thus eliminating the expenses of coining it.
Clearing Circulars Issued by Banks.
Preliminary to putting into operation the
plan of check clearings and collections outlined
in the Federal Reserve Board's Circular No. 1,
series of 1916, the 12 Federal Reserve Banks
have sent to their member banks circulars
setting forth the details of the plan. Each
Federal Reserve Bank, while following the
provisions of the Board's circular, has adapted
the general plan to the particular conditions of
its district by minor adjustments. The 12
circulars^ however, are very similar in substance and it will, therefore, suffice to print
in the Bulletin the circular issued by the
Federal Reserve Bank of Chicago, which is
fairly typical, and to point out the more important deviations which appear in the circulars of other Federal Reserve Banks.
FEDERAL RESERVE BANK OF CHICAGO,

79 West Monroe Street, Chicago, June 15,1916.
To the member banks of district number seven:
CHECK CLEARING AND COLLECTION.

On May 1, 1916, you were advised of the action of the
Federal Reserve Board under which each Federal Reserve
Bank is required to "exercise the functions of a clearing
house for its member banks." We now present herewith
the details of the collection and clearing system which will
be inaugurated by the 12 Federal Reserve Banks on July




JULY 1, 1916.

15,1916, and which will on that date supersede the present
intradistrict collection system.
Use of the collection system is voluntary.—No member
bank is required to use the collection system, nor are any
formalities or resolutions required before it may be used.
A member bank may send items for collection through the
Federal Reserve Bank regularly, occasionally, or not at
all; or may.collect them through present correspondents
or in any other manner considered advantageous.
Items which will be received.—We will receive from
member banks:
(a) Checks on all member banks of the Federal Reserve
System throughout the United States.
(6) Checks on all nonm ember banks in the United States
which can be collected by us at par.
Par lists of member and nonmember banks on which
items will be received will be furnished from time to time.
Uniform instructions.—To facilitate the handling of a
large volume of items, it is understood that all checks
and drafts handled by the Federal Reserve Bank as cash
items are received under the following conditions:
1. All items of $10 or under are not to be protested.
2. All other items are to be protested except those
stamped on the face "N. P . , " followed by the A. B. A.
transit number of a bank indorser in the following form:
(N. P. 2-30).
3. Advice to be telegraphed of dishonor of all items of
$500 or over.
Items bearing other instructions should be accompanied
by collection letters plainly marked "Special items,"
and will be received only for credit when paid.
Indorsement of items.—All items forwarded to the Federal
Reserve Bank should be indorsed without restriction to
the order of Federal Reserve Bank of Chicago and show
on each side of the indorsement the American Bankers'
Association transit number in prominent type.
Restrictions as to indorsements.—To insure direct routing,
this bank reserves the right to return any item drawn on a
bank located outside of this district when such item bears
the indorsement of a bank located outside of this district.
When proceeds of items will be available.—Immediate
credit entry at par, subject-to final payment, will be made
for all checks received by this bank by 2 p. m., except
Saturday, when the hour will be 12 o'clock noon. The
proceeds of such items will not, however, be available for
withdrawal nor count as reserve until the lapse of time
indicated in the attached schedule.
For the convenience of member banks, the schedule is
arranged in four divisions:
1. Points on which checks are immediately available
for reserve.
2. Points on which checks are available in two days.
3. Points on which checks are available in four days.
4. Points on which checks are available in eight days.
You are requested to sort checks into the four divisions,
listing each division on a separate sheet. This will enable
you to determine the day upon which the funds will be
available as reserve in this bank.

JULY 1,1916.

FEDEBAL EESEUVE BULLETIN.

313

Statements showing amount of uncollected funds.—
Collectible at par through the Federal Reserve Bank of
A transcript of account showing the gross balance, the Chicago.—Member banks are entitled to place the words,
amount of uncollected funds, and the actual reserve "Collectible at par through the Federal Reserve Bank of
balance will be sent to each member bank on every day Chicago," on their own checks and the checks used by
upon which there is a transaction in the account or a change their depositors. Your attention is called to the desirin the amount of uncollected funds.
ability of availing of this privilege.
Method of handling the items.—Checks drawn on member District number on checks.—To facilitate the sorting of
banks of this district will be forwarded direct to the paying checks by member banks and by Federal Reserve Banks,
banks and will be charged to their accounts on the second it is requested that you have clearly imprinted on all
business day after the date of sending, thus giving member your checks and drafts the figure 7, preferably in a large
banks time to provide funds to cover.
skeleton figure in the center of the check.
Items drawn on nonmember banks will be sent to such
Transfers of funds.—It is suggested that member banks
member banks as desire to receive them, or may be sent desiring to transfer funds should request their correby arrangement direct to nonmember banks.
spondents to make such transfers and should not, for that
Unpaid items not subject to protest must be returned on purpose, send for credit their drafts drawn on their correday of receipt. Protested items must be returned not spondents.
later than the day after receipt. Unpaid items must not
Penalty for impairment of reserves.—With the inaugurabe held for any purpose whatsoever except for immediate tion of the collection system, the penalty for impairment
protest.
of reserves provided by the Federal Reserve Act will be
Direct routing.—When time can be saved and the imposed. You will be requested to report monthly the
volume of items warrants, arrangements may be made with average reserve required to be kept with the Federal
this bank for direct routing between member banks of this Reserve Bank. Impairment of the reserve, if any, will
district or between member banks of this district and other be ascertained by comparing the amount of the average
districts, or between member banks of this district and reserve required with the average actual reserve as shown
other Federal Reserve Banks.
by our books. The penalty for the present, to be figured
How member banks may maintain balances.—Member on the deficiency in reserve, will be an interest charge
banks may maintain their balances with us:
fixed by the Federal Reserve Board at a per annum rate
of 2 per cent above the maximum discount rate in this
(a) By depositing Chicago exchange.
(6) By depositing out-of-town items, the proceeds of district, but in no case less than 6 per cent.
which will be available as reserve in accordance with the
Conditions under which member banks may use system.—
time schedule.
Every member bank sending items to us, after the inau(c) By shipment to us at our expense of properly sorted guration of the collection and clearing system, will be
lawful money or Federal Reserve notes when unable to understood to have agreed to the terms and conditions
supply checks or Chicago exchange in sufficient volume set forth in this bulletin and to have thereby specifically
to offset the items sent to them.
agreed that in receiving such items the Federal Reserve
(d) Byrediscounting.
Bank of Chicago will act only as the collecting agent of
Member banks are required by the Federal Reserve the sending bank; will assume no responsibility other than
Board to provide funds to cover at par all checks received due diligence and care in forwarding such items promptly;
from or for the account of their Federal Reserve Bank; and will be authorized to send such items for payment
Provided, however, That a member bank may ship lawful direct to the bank on which drawn or to another agent for
money or Federal Reserve notes from its own vaults at the collection at discretion.
expense of the Federal Reserve Bank to cover any deCooperation of member banks desired.—The new collecficiency which may arise because of and only in case of tion system is based upon the provisions of the Federal
inability to provide funds to offset checks received by Reserve Act, and the details herein outlined are the result
or for the account of the Federal Reserve Bank.
of careful study of the problems involved and of experience
Service -charge.—As it is optional with each member bankgained in operating the existing intradistrict system.
whether it will collect checks through the Federal Reserve
The plan as presented is subject to modification in the
Bank or through other channels, the cost of operating the future, if experience in operating proves that changes are
system of check clearing and collection will be borne desirable or necessary. It is our desire that the system
exclusively by the banks that use it and in exact propor- be conducted in such manner as to render valuable service
tion to the extent of its use by the individual banks.
to those who use it, and to this end your cooperation is
The actual cost of operation will be assessed monthly requested.
on a per item basis upon the member banks depositing
We invite suggestions from member banks and shall
items. The service charge for the present will be 1£ cents cheerfully respond to any inquiries in regard to the details
per item. Should the cost per item decrease as the system of the plan, either through correspondence or by personal
develops the service charge will be reduced accordingly. interview.
No service charge for the present, at least, will be made
Very respectfully,
for collecting items drawn on Chicago banks.
JAMES B. MCDOUGAL, Governor.
46718—16—-2




314

FEDERAL RESERVE BULLETIN.

DATE OF INAUGURATION.

JULY 1,1916.

BANK TRANSFERS.

July 15 is the date fixed in all the districts
for the inauguration of the new plan. The
Federal Reserve Bank of St. Louis will place
it in operation, so far as concerns those banks
which are already members of its collection
system, at a somewhat earlier date, but will
not make operations general until July 15.

The Federal Reserve Banks of Chicago,
Minneapolis, and San Francisco have indicated
their wish to have bank transfers effected by an
order between the banks rather than by the
issuance of bank drafts. The Federal Reserve
Bank of Minneapolis will make a charge at the
market rate of exchange for drafts on a Federal
Reserve Bank issued and sent out of the disCHECKS ON NONMEMBER BANKS.
trict, provided they amount to more than
The Federal Reserve Bank of San Francisco $10,000 in one day.
announces in its circular that it will receive
PENALTY FOR IMPAIRMENT OF RESERVES.
from member banks items on all nonmember
banks in District No. 12.
The penalty for impairment of reserves is
practically
uniform in all cases, being fixed by
SHIPMENTS OF LAWFUL MONEY AND FEDERAL
the
Federal
Reserve Banks of Boston, New
RESERVE NOTES.
York, Philadelphia, Cleveland, and Richmond
In carrying out the provisions of the Board's
at 2 per cent above the discount rate for 90-day
circular permitting member banks to ship lawpaper. The Federal Reserve' Banks of Chicago,
ful money or Federal Reserve notes to the
Minneapolis, and Kansas City fix the rate at 2
Federal Reserve Bank at its expense, the Fedper cent above their maximum discount rates.
eral Reserve Bank of Atlanta has also indicated
The Federal Reserve Bank of San Francisco
its willingness to have national-bank notes
has fixed the rate 3 per cent above its 10-day
shipped in this manner, but is not prepared
discount rate, while the Federal Reserve Banks
to pay the cost of shipment of gold or silver
of
Atlanta, St. Louis, and Dallas have not ancoin. The Federal Reserve Banks of Atlanta,.,.
nounced
the rate at which the penalty will be
Minneapolis, and San Francisco have stipuimposed.
lated that -they will not pay the cost of shipment of funds to cover cashier's checks or
drafts on a Federal Reserve Bank issued by
a member bank.
SERVICE CHARGE.

There is practical uniformity in the service
charge to be imposed by the different Federal
Reserve Banks. All except the Federal Reserve Banks of Dallas and San Francisco will
charge 1J cents per item and make no charge
for items on banks in their own Federal Reserve city. The Federal Reserve Bank of Dallas will impose a charge of 2 cents per item, and
the Federal Reserve Bank of San Francisco will
make a charge on cash items payable at points
other than San Francisco, New York City, and
Chicago of 2 cents per item. The Federal
Reserve Banks of St. Louis, Kansas City,
Dallas, and San Francisco will make no charge
on drafts drawn on other Federal Reserve
Banks.




AVAILABILITY OF UNCOLLECTED FUNDS.

Four banks—those at Atlanta, St. Louis,
Kansas City, and San Francisco—have stated
in their circulars that uncollected items in the
hands of the Federal Reserve Bank, while not
available to count as reserve required to be
held with the Federal Reserve Bank, can be
counted "as part of the optional reserve which
member banks are permitted to hold either in
vault, in the Federal Reserve Bank, or with
approved reserve agents.
INDORSEMENTS BY MEMBER BANKS OF ITEMS
SENT.

Two Federal Reserve Banks, those at Richmond and Kansas City, have requested that
the indorsement stamp used by member banks
to indorse checks to the Federal Reserve Bank
also carry the indorsement from the Federal
Reserve Bank to "any Federal Reserve Bank

JULY 1,1916.

FEDEKAL RESEBVE BULLETIN.

315

or member bank." This is designed to relieve
Leave of Absence to Gov. Strong,
these Federal Reserve Banks of the necessity of
Mr. Benjamin Strong, governor of the Fedindorsing the large number of checks which
eral
Reserve Bank of New York, has, with the
will pass through their hands.
consent of the Federal Reserve Board, been
DEALINGS IN EXCHANGE ON FEDERAL RESERVE
granted leave of absence because of ill health.
CITIES.
The board of directors of the New York bank
The Federal Reserve Bank of St. Louis, anhave appointed Mr. Robert H. Treman, of
ticipating that the development by the Federal
Ithaca, N. Y., one of the directors of the bank,
Reserve Banks of a national clearing system
deputy governor ad interim.
will create an active market for exchange on
The following announcement was issued from
the various Federal Reserve cities, announces
New York bank under date of June 22:
that it will publish rates at which it will buy
At a meeting held to-day the board of direcand sell exchange on such cities. The Federal
tors
were advised that Gov. Strong, owing to
Reserve Bank of San Francisco in its circular ill health,
has been ordered by his physician
establishes rates for business of this kind, and to take a complete'rest for a period of several
also announces that drafts issued by its mem- months. The directors, realizing .that Mr.
ber banks will be receivable at other Federal Strong's condition is primarily due to his
Reserve Banks for immediate credit at par, and devoted and unceasing efforts in the organization and operation of the bank, have granted
that a charge will be made against the drawer of him
the necessary leave of absence.
drafts in excess of $1,000 each at the current
Mr. Woodward, who has- since, the opening
rate for sale of interdistrict telegraphic trans- of the bank held the office of deputy governor
fers. It also announces that it will accept in an advisory capacity, will continue as heredrafts drawn on other Federal Reserve Banks tofore, but' it is necessary to have an active
for immediate credit at par without service executive who can give constant attention to
the business of the bank. The board has, therecharge.
fore, appointed Mr. Robert H. Treman, of
FEDERAL RESERVE BANK OF BOSTON TAKES OVER Ithaca, N. Y., one of our directors, a deputy
governor ad interim. He has kindly consented
BOSTON COUNTRY CLEARING HOUSE.
to come to New York and will assume his active
The Federal Reserve Bank of Boston an- duties at the office of the bank on Tuesday,
nounces in its circular that it has entered into June 27.
Respectfully,
an agreement with the Boston Clearing House
PIERRE JAY,
Association to take over the country clearing
Chairman, Board of Directors,
heretofore carried on by the clearing house and
which will be incorporated in and carried on by
the Federal Reserve Bank of Boston.
Cost of Gold Settlement Fund.
The Federal Reserve Bank of Dallas is to
The expense of operating the gold settlement
handle its clearing and collection system in
clearing-house form, each bank being charged fund from November 20, 1915, to May 20, 1916,
or credited each day, not for the total amount a period of six months, is estimated by the
of items brought against it or deposited by it, Federal Reserve Board at $453.74. The operbut for the net difference between these totals. ating expense for the previous six months was
The Federal Reserve Bank will send to each estimated at $1,037.30, the former sum being
bank which has a debtor balance a settlement greater because of some expenses of organizaslip to be signed, which will authorize the tion and equipment. The items making up
Federal Reserve Bank to charge its account. the amount are given below.
As these returns come in, the creditor banks
The Federal Reserve Board voted on June
will receive final payment in the order of the 22, 1916, in view of the smallness of the sum
amount of their credit balances, those having involved, to include this $453.74 in the amount
the heaviest balances being paid first.
to be covered by the assessment made upon




316

FEDERAL BESBBVE BULLETIN.

JULY 1, 1916.

Federal Reserve Banks for the general expenses eral Reserve Act, up to July 1, 1916, amount to
of the Federal Reserve Board. The items are $10,290,600. There will be converted as of
July 1, 1916; $9,574,200, making a total of
as follows:
$19,864,800. The remainder of the $30,000,000
Part of salary of private secretary to member of
authorized to be converted in 1916 may be
Board, designated'to act as deputy settling
agent, chargeable to gold settlement fund ($500
taken by Federal Reserve Banks on October 1,
per year, beginning Jan. 1, 1916)
$194. 40 which is the next and last conversion date for
Telegrams
240. 00 the year.
Printing, etc
19. 34
Only one Federal Reserve bank decided not
Total
453.74 to avail itself of the conversion privilege at this
time. Banks not having converted their full
quota prior to October 1 may do so on that date.
New National Bank Charters.
Below is given a table showing the conversions
of bonds by banks to and including July
The Comptroller of the Currency reports the
1,
1916,
the total allotments for 1916, and the
following increases and reductions in the numamounts
which may still be converted on October of national banks and the capital of
ber
1.
national banks during the period from May 27,
Conversion of United States bonds.
1916, to June 23, 1918:
Banks.

New charters issued to
10
With capital of
$530, 000
Increase of capital approved for
3
With new capital of
140, 000
Aggregate number of new charters and banks
increasing capital
13
With aggregate of new capital authorized
670, 000
Number of banks liquidating (other than
those consolidating with other national
banks)
Capital of same banks
Number of banks reducing capital
Reduction of capital

9
430,000
1
20,000

Total number of banks going into liquidation or reducing capital (other than those
consolidating with other national banks).. 10
Aggregate capital reduction.
450, 000
The foregoing statement shows the aggregate of
increased capital for the period of the banks
embraced in statement was
670,000
Against this there was a reduction of capital
owing to liquidations (other than for consolidation with other national banks) and reductions of capital of
450, 000
Net increase

220,000

Conversion of United States Bonds.

The 2 per cent United States bonds converted
into thirty-year 3 per cent bonds and one-year
3 per cent notes, under section 18 of the Fed-




Conversions as of July 1,1916.

Bonds.

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

Notes.

1250,000 $250,000
2,283,300 2,282,000
1,318,800 818,000
1,200,000 1,200,000
684,000
686,700
526,000
531,900
850,000
1,850,000
570,000
572,500
350,000
349,300
616,000
617,000
529,000
530,300
500,000
500,000

Total.

Amounts
which
Total
maybe
allotment converted
for 1916.
Oct. 1,
1916.

$500,000 $2,763,900 $2,263,900
4,565,300 6,130,500 1,565:200
2,136,800 2,849,100
712,300
2,400,000 3,249,600
849,600
1,370,700 1,827,600
456,900
1,057,900 1,410,600
352,700
2,700,000 3,635,400
935,400
1,142,500 1,523,400
380,900
699,300 1,398,600
699,300
1,233,000 1,644,000
411,000
1,059,300 1,412,400
353,100
1,000,000 2,154,900 1,154,900

10,689,800 9,175,000 19,864,800 30,000,000 10,135,200

Owing to the fact that Federal Reserve
Banks were known to have purchased practically the required amount of $25,000,000
early in the year, there was a comparatively
small offering of bonds by member banks for
sale to Federal Reserve Banks through the
Treasurer of the United States. The following
resolution was passed by the Board on June 23,
1916:
Whereas, It appears that the 12 Federal Reserve Banks have purchased in the open
market bonds in excess of the amount which
might have been allotted, to such banks at the
end of this quarterly period on the basis heretofore determined upon and announced by
the Board: Now, therefore, be it
Resolved, That it is the sense of the Board
that no necessity exists for enforcing the re-

JULY 1,1916.

FEDERAL RESERVE BULLETIN.

quirement provided for under section 18 of the
Federal Reserve Act at the end of this quarterly period ending June 30, 1916, and that it
will not at this time require the Federal Reserve
Banks to purchase any of those bonds which are
offered for sale by member banks through the
Treasurer of the United States under the provisions of section 18.
Be it further resolved, That the secretary be
instructed to send a copy of this- resolution to
the various Federal Reserve Banks and to the
member banks which have offered bonds for
sale in order that they may be notified of the
action of the Board in the premises.

Boston Bank Takes Over Clearing House.
The management and operation of the Boston
Clearing House will, on July 15, be taken over
by the Federal Reserve Bank of Boston. The
Boston Clearing House Association was one of
the first clearing associations to be established
in this country and not ovAj conducts a daily
clearing of checks among its Boston members,
but operates a so-called foreign department
in which checks drawn upon all country banks
throughout the New England States are daily
assembled and forwarded for collection and
remittance. This foreign department was
established in 1900 and has proved most satisfactory and effective.
Similar systems for the collection of country
checks have been established in several other
cities of the country in connection with their
clearing houses, and in many instances the
foreign department of the Boston Association
has been used to quite an extent as a model.
By the terms of the agreement which has
been entered into between the Federal Keserve
Bank of Boston and the Boston Clearing
House Association the collection of all checks
drawn upon New England banks outside of
Boston will be entirely taken over by the
Federal Reserve Bank, which will perform
this service in the future under similar rules
and regulations to those now in force.
With respect to the daily clearing of checks
between the associated banks of Boston, however, the situation is slightly different. Al-




317

though the Federal Reserve Bank will take
over the physical property' of the association,
assume the lease of its premises, and take into
the employ of the bank the association's
manager and clerks, the association will maintain its status of a voluntary organization with
officers elected by its members.
In this latter capacity the association willcontinue to. exercise its normal supervising
functions over the conduct of its members, and
it will further effect its own daily clearing of
Boston checks, the Federal Reserve Bank furnishing for this purpose the clerical force, space,
and equipment. The clearing balances once
having been established, however, all settlements will be effected through the Federal
Reserve Bank, as has been the practice in
Boston since that bank was opened. The
staff and equipment which the Federal Reserve
Bank will thus acquire will be utilized by the
bank in its clearing department to be established in connection with the country-wide
collection and clearing system recently authorized by the Federal Reserve Board.
This taking over of the Boston Clearing
House has closely followed and becomes a part
of the movement to establish a collection and
clearing system through the Federal Reserve
Banks. The officers of the Federal Reserve
Bank of Boston have been in negotiations with
the officers of the Clearing House Association
for some time, but it has neither been practical
nor feasible to take the present step until the
other Federal Reserve Banks were in a position
to put into force an interdistrict system.
The Boston Clearing House will be taken over
on the day set for putting into force the Federal Reserve clearing and collection system.
The equipment which will be acquired, and the
trained force which will be received will enable
the Federal Reserve Bank of Boston to start
its clearing department under most favorable
conditions.
The cooperation of the Boston Clearing
House Committee in this connection, as in
many other particulars pertaining to the development of the Federal Reserve Bank of Boston,
has been most helpful and beneficial.

318

FEDERAL RESERVE BULLETIN.

JULY 1,1916.

this Board, a receipt for payment made. Such
assessment will be collected in two installments
Acting under the provisions of the Federal of one-half each; the first installment to be
Reserve Act, the Federal Eeserve Board, on paid on July 1, 1916, and the second half on
June 16, voted an assessment of 0.00075 upon September 1, 1916.
the capitalization of Federal Eeserve Banks to
Estimate for July, 1916, assessment.
cover the estimated general expenses of the
encumbrances (i. e. pay rolls, exBoard from July 1 to December 31, 1916. The Total
penditures and commitments) for the
assessment is based upon a capitalization of
month of November, 1915, taken as a
Federal Eeserve Banks on June 8, 19.1.6, of
typical month
$17,049.06
$109,719,233.24. The rate of assessment will Total encumbrances (i. e. pay rolls, expenditures and commitments) for the
yield $82,289.42, and is the lowest which has
month of May, 1916, taken as a typical
been levied by the Board. This is made posmonth.
16, 663.02
sible through the fact that a balance has been Estimated monthly requirements, July
accumulated. The resolution of the Board and
to December, 1916
17,545.46
the figures on which the assessment is based
Estimated increase over May, 1916.
882.44
follow:
Estimated requirements, July to December, inclusive, 1916
105, 272. 76
Whereas, under section 10 of the Act approved
December 23, 1913, and known as. the Fed- Unencumbered balance,
Junel, 1916.....
$53,216.63
eral Eeserve Act, the Federal Eeserve Board
is empowered to levy semiannually upon the Receipts, June 1 to 15, 1916:
Federal Eeserve Banks in proportion to their
Reimbursements
300.00
capital stock and surplus, an assessment sufBulletin..
77.00
ficient to pay its estimated expenses, in53,593. 63
cluding the salaries of its members, assistants,
attorneys, experts, and employees for the
Estimated requirehalf year succeeding the levying of such
ments for June, 1916. 15,475.59
assessment, together with any deficit car- Estimated unencumbered balance, July
ried forward from the preceding half year;
1,1916
38,118.04
and
67,154.72
Whereas, it appears from estimates submitted
and considered that it is necessary that a Total capitalization Federal Reserve
Banks June 8,1916
109, 719,233.24
fund equal to seventy-five one thousandths
of 1 per cent (0.00075) of the capital stock of Rate of assessment to produce $67,170.00.
0.0006122
the Federal Eeserve Banks be created for Rate of assessment to produce $71,317.50.
. 00065
the purposes hereinbefore described, exclu- Rate of assessment to produce $82,289.42.
. 00075
sive of the cost of engraving and printing Rateofassessmenttoproduce$109,719.23.
.001 '
Federal Eeserve notes: Now, therefore,
In view of the balance of $38,118.04, brought forward,
Be it resolved, That pursuant to the authority it is recommended that an assessment of approximately
vested in it by law, the Federal Eeserve Board 80 per cent for the estimated expenditures for the next
hereby levies an assessment upon the several six months be levied.
SHERMAN ALLEN,
Federal Eeserve Banks of an amount equal to
Fiscal Agent.
seventy-five one thousandths of 1 per cent
(0.00075) of the total capital stock of such
Assessment of 0.00075 approved.
banks, and the fiscal agent of the Board is
F. A. DELANO,
hereby authorized to collect from said banks
W. P. G. HARDING,
such assessment and execute, in the name of
Committee on Organization and Expenditures.
Assessment by Federal Reserve Board.




319

FEDERAL RESERVE BULLETIN.

JULY 1,1916.

Detailed statement of expenditures and commitments as a basis of estimate.
Estimated avJanuary. February.

March.

April.

May.

June.

Monthly mom .„
average. requirement,July
1 to Dec.
31,1916.

Total.

PERSONAL SERVICES.

Board and its clerks
Secretary's office
Counsel's office
Division of Audit and Examination.,
Division of Reports and Statistics
Division of Issue
Telephone operator
Charwomen...
Contingencies.
Total.

374.98 $7,374.98 $10,977.86 $7,374.98 $7,354.15
456.65 2,456.65 2,373.32 2,198.32 1,623.32
1,866.67 1,866.67 2,068.66 2,066. 67
1,254.16
1,254.16 1,254.16 1,254.16
683.33
707.33
878.66
651. 66
717.00
791.66
646.66
716. e
60.00
60.00
60.00
60.00
315.00
315.00
315.00
315.00
315.00
60.00
60.00
60.00
60.00
60.00
14,934.94 14,811.79

$7,374.98 $47,831.93 $7,971.99 $7,374.99
1,623.32 12,731.58 2,121.93 2,028.32
2,066.67 11,800.00 1,966.67 2,066.67
1,254.16 7,737.46 1,289.58 1,288.16
906.66
811. 55
866.66 4,869.30
655.66
646.66 4,170.30
60.00
60.00
60.00
360.00
345.00
315.00
315.00 1,890.00
60.00
60.00
360.00
60.00
200.00
200.00
91,750.57 15,291,76

14,985.46

391.02
69.00

65.17
11.50
456.54

100.00
20.00
600.00

294.57
20.00
.33

49.10
3.34
.05

10.00
5.00

283.64
1,574.07
45.00
4,853.74

47.27
262.34
7.50
808.96

50.00
300.00
10.00
1,000.00

21.50
180.00
60.00
137.97

3.60
30.00
10.00
23.00

5.00
30.00
10.00
25.00

566.66
134.26
303.02

94.44
22.38
50.50

100.00
10.00
50.00

215.79
7.'80
2,373.84 1,703.81 2,910.30 2,403.10 2,416.40 1,208.14 13,015.59 2,169.26
17,308.78 16,515.60 21,487.63 17,315.54 16,663.02 15,475.59 104,766.16 17,461.02

225.00
10.00

18,577.33 14,912.44 14,246.62 14,267.45

NONPERSONAL SERVICES.

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

69.00
584.36

225.82

144.90

178.58

"622*65

*387."ii

136.15
5.00

5.00

5.00

20.30

158.42
5.00
.33

70.54
331.69

38.29
219.67

850.10

875.91

30.00
15.00
127.57
10.00
43.58
80.10
20.75

59.83
322.71
45.00
934.32

34.98
300.00

40.00
200.00

40.00
200.00

734.17

756.04

703.20

2.75
30.00
15.00

6.75
30.00
15.00
28.65

2.50
30.00
15.00
7.-50

9.50
30.00

30.00

41.81

133.48
14.10
11.52

171.44
.23
162.95

62.36
109.93
58.74

13.91
278.39
4.50

451.12
4.35

39.95
8.00

"i6i.*82"
30.00
*"i2.*32

1,294.76
46.80

445.20
9.20

2,560.00
17,545.46

DISCOUNT RATES.
Discount rates of each Federal Reserve Bank in effect June 22, 1916.
Trade acceptances.
AgriculMaturities Maturities tural and
Maturities Maturities
of
over
10
of
over
30
of over 60 live-stock
of 10 days to 30 days,
to 60 days, to 90 days, paper over To 60 days, Over 60 to
and less.
inclusive. inclusive. inclusive.
90 days,
inclusive.
90 days.
inclusive.
Boston
New York
Philadelphia
Cleveland
Richmond.
Atlanta
Atlanta (New Orleans branch).
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

Commodity
paper.

Paper
bought
in open
market.

3

f

I
3

3J
3f-4

13

If

43

3-5

1 Rate for commodity paper maturing within 90 days,
a Rate for bills of exchange in open market operations.
* Rate for trade acceptances bought in open market without member bank indorsement.
* A rate of 2 to 4 per cent for bills with or without member bank indorsement has been authorized.
6 Rate for commodity paper mattering within 30 days, 3£ per cent; over 30 to 60 days, 4 per cent; over 60 to 90 days, 4J per cent; over 90 days,
5 per cent.




320

FEDERAL RESERVE

GOLD SETTLEMENT FUND.

BULLETIN.

JULY 1, 1916.

SIR : Acting under instructions of the respective chairmen of Conferences of Governors and
Federal Reserve Agents, we have made an
audit of the accounts of the gold settlement
fund and the Federal Reserve Agents7 fund, as
at the close of business May 11, 1916.
Present while counting the gold certificates
were the following gentlemen: W. M. Imlay,
representing Federal Reserve Board; Ray M.
Gidne}^, deputy settling agent; John De La
Mater, representing Federal Reserve Board.
Proper reconcilements of all balances have
been received.
The result of this audit is shown in the two
exhibits attached hereto: Exhibit A, balances;
Exhibit B, gold certificates counted.
Respectfully submitted.

Quarterly audit of the gold settlement fund
was made on May 12, 1916, for the period from
February 3. Reports of the audit follow:
WASHINGTON, June 2, 1916.
To the Federal Reserve Board:
I have the honor to report that I was present
at and witnessed the audit of the accounts of
the gold settlement fund and of the Federal
Reserve Agents' fund, made on May 12, 1916,
by Messrs. J. M. Slattery, representing Federal
Reserve Banks, and W. F. Taylor, representing
Federal Reserve Agents, there also being present Mr. Ray M. Gidney, deputy settling agent,
and Mr. John De La Mater.
J. M. SLATTERY,
Attached hereto are duplicate copies of the
Representing Federal Reserve Banks.
reports, dated Ma}^ 26, 1916, of Messrs. Slattery
and Taylor, made ^ to the chairman of the ConW. F. TAYLOR,
ference of Governors and to the chairman of the
Representing Federal Reserve Agents.
Conference of Federal Reserve Agents, with
Exhibit A, showing the balance to the credit of
clearings and transfers, Federal Reserve Banks,
each Federal Reserve Bank and each Federal Amountfromof May
26, 1916, to June 22, 1916, inclusive.
Reserve Agent, and Exhibit B, containing a
list of the United States Treasury gold certifiTotal
cates counted, the total amount in the two
Transfers.
Balances.
clearings.
funds on the date of audit being $120,390,000.
One hundred eighteen million nine hundred Settlement of—
eighty thousand dollars of this amount was
$4,3.79, COO
$60,815,000 $6,007,000
J u n e l , 1916
2,800,000
71,515,000 10,831,000
June 8,1916
in the possession of the settling agents, the
4,104,000
6,011,000
66,682,000
June 15, 1916
2,328,000
5,592,000
70,470,000
June 22,1916
amount being verified by me, and $1,410,000
was in transit from the Treasurer of the United
13,611,000
269,482,000 28,441,000
Total
46,441,000
1,125,591,000 121,130,000
States, a certificate for which was furnished by Previously reported
60,052,000
Total since Jan. 1, 1916.... 1,395,073,000 149,571,000
the cashier of the Treasury.
Total for 1915
1,052,649,000
All balances have been verified in writing by
Total for period May 20,
the Federal Reserve Banks and Federal Reserve
1915, to June 22, 1916.... 2,447,722,000
Agents, the reconcilements being also hereto
attached.
Respectfully submitted.




W. M. IMLAY,

Representing Federal Reserve Board.

321

FEDERAL RESERVE BULLETIN.

JULY 1,1916.

Changes in otvnership of gold.
To May 25,1916.

Federal Reserve Bank of—
Increase.

Decrease.

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

$11,881,000
12,045,000
7,541,000
11,317,000
14,282,000
4,714,000
9,177,000
18,333,000
4,319,000
" " 8," 859," 666"
5,711,000
6,311,000
6,987,500
13,120,000
9,722,500
14,700,000
8,213,000
30,243,000

$14,430,000
2,955,000
13,167,000
11,302,000
14,493,000
5,392,000
4,562,000
6,494,000
5,628,000
8,180,500
9,154,500
10,152,000

144,288,000

105,910,000

26,901,000
10,807,000
12,872,000
14,324,000

144,288,000
1
2

105,910,000

Decrease.

Decrease.

Increase.

$9,090,000

$2,549,000

kikh.645.666

2ii 666

678,000

4,615,000

22,948,000

2 175 666

83,000

1,193,000 ; ; ; ; ; ; ; ; ; ; ; ; ; ;

568*666"

1,939,000
14,371,000

14,371,000

$8,700,000
32,527,000
10,792,000
13,083,000
15,002,000

5,626,000

15,666*

Increase.

157,993,000

""""ii," 634*666
6,228,000
14,313,000
14,132,000
32,182,000
157,993,000

Changes in ownership of gold during period May 26,1916, to June 22, .1916, equal 5.1 per cent of obligations settled.
Total changes in ownership of gold equal 6.3 per cent of obligations settled.

Summary

Federal Reserve
Bank of—

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

Balance to
credit May 25,
1916, plus net Balance June
deposits of
22,1916.
gold since
that date.

$6,151,000

$125,955,000

Total change from May 20,
1915, to June 22,1916.2

From May 26,1916, to June 22,1916.1

Balance
last statement, May
25, 1916.

111,881,000
2 0*5 000
13,381,000
11,217,000
13,392,000
4,714,000
877,000
....
4,419,000
4,711,000
7,537,500
9.032,500
6^103,000

Total

89,310,000

of transactions, May 26, 1916, to June 22, 1916.
Transfers.

Gold.
Withdrawn.

Deposited.

kib bob bob

170,000
100,000
280,000

$5,000,000

Debit.
$1,500,000
632," 666'
500,000

"4",'806,'666"
600,000

376,666"
760,000 . 2,800,000
18,150,000

6,130,000

1 147 000
4,379,000

Settlement of June 1,1916.

Credit.

Net
debits.

Total
debits.

Total ,
credits.

Net
credits.

June 1,1916,
balance in
fund after
clearing.

$5,644,000 $6,570,000
$1,000,000
$926,000 $12,307,000
649.000 "$3*326," 666" 16,169,000 12,849,000
9,374,000
8,130,000 10,163,000 2,033,000 12,114,000
1,530; 000
1,490,000 1,979,000
489,000
11,174,000
36,000 7,219,000 7,183,000
13,136,000
1,909,000 1,784,000
125,000
4,589,000
9,844,000 10,577,000 "**733,*666"
"i," 266,'666'
7,610,000
2,277,000 6,758,000 4;481,000
2,142,000
120,000
197,000
4,188,000
77,000
239,666* 2,865,000 2,626,000
6,928,500
383,000
8,324,500
822,000
439,000
284,000 1,584,000 1,300,000
9,443,000
4,379,000

6,007,000

60,815,000

60,815,000

6,007,000

101,330,000

Net
credits.

June 8,1916,
balance in
fund after
clearing.

•

Federal Reserve
Bank of—

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

$12,307,000
9,374,000
12,114,000
11,174,000
13 136 000
. . .
4,589,000
7,610,000
2,142,000
4,188,000
6 928 500
8,324,500
9,443,000

Total

46718—16




Balance
last statement, June
1, 1916.

101,330,000

Gold.
Withdrawn.

Deposited.

j

Transfers.

Debit.

Credit.

Settlement of June 8, 1916.
Net
debits.

Total
debits.

Total
credits.

$5,384,000 $6,043,000
$659,000 $13,466,000
20,875,000 13,219,000
3,718,000
7,355,000 11,426,000 4,071,000
16,485,000
3,122,000 3,209,000
10,961,000
87,000
$300,000
13,066,000
""226,* 666" 9,735,000 9,515,000
$i50,666
4,133,000
456,000 2,104,000 1,648,000
2,499,000 12,813,000 10,314,000
6,111,000
1,000,000
6,915,000 9,583,000 **2,*668*666"
2,810,000
' "2," 666,* 666* *..."'""*"."
639,000
205,000
844,000
4,827,000
1,631,000
2,517,000 4,148,000
8,559,500
429,000
425,000
854,000
8,853,500
100,000
617,000
65,000
712,000
9,590,000
500,000
1,250,000

2,800,000

$500,000
2,000,000
300,000

$7,656,000

2,800,000

10,831,000

71,515,000

71,515,000

10,831,000

102,580,000

322

FEDERAL KESEEVE BULLETIN.

JULY i, 1916.

Summary of transactions, May 26 1916, to June 22, iWG—Continued.
Federal Reserve
Bank of—

Balance
last statement, June
8, 1916.

Boston
$13,466,000
New York
3,718,000
PhiladelDhia
16,485,000
Cleveland
10,961,000
Richmond
13,066,000
A-t^nta
4 133 000
Chicago .
. . .
6, 111, 000
St. Louis
2,810,000
4 827 000
Ivlinneapolis
8,559,500
Kansas City
Dallas
8,853,500
9,590,000
San Francisco
Total

102,580,000

Federal Reserve
Bank of—

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

Balance
last statement, June
15, 1916.
%U, 216,000
3,678,000
12,424,000
11, 731,000
13, 731,000
4,880,000
6,815,000
3,468,000
4,564,000
8,343,500
8,810,500
9,849,000
102,510,000

Transfers.

Gold.
Withdrawn.

Deposited.

'$i,"6io,"o66'
"Hob, boo'
1,000,000
150,000
10,000
1,170,000

Debit.

Credit.

$200,000

$650,000
2,850,000
4,000

4," 666'
500,000
1,000,000
1,000,000
400 000

1,100,000

Net
debits.

$2,890,000
3,055,000

66,000

4,104,000

6,011,000

Deposited.

Debit.

1500,000

Credit.

Net
debits.

$1,550,000
35,000

$2,273,000

"""i36o,"666"
"%lbb,bbb'
30,000

130,000

1,500,000

1,000,000

1,000,000

313,000

600,000
70 000

515,000

3,530,000

2,328,000

433,000 | 1,186,000
310 000 !
133,000

2,328,000

Total
debits.

Net
credits.

Total
credits.

5,592,000

June 15,
1916, balance m
fund after
clearing.

$7,438,000
16,001,000
10,359,000
1,814,000
. 7,60'6,000
1,685,000
10,784,000
7,134,000
146,000
3,336,000
305,000
74,000

$7,738,000
$300,000 $14,216,000
3,678,000
13,111,000
12,424,000
7,304,000
11,731,000
2,588,000 """774,"666"
13,731,000
8,671,000
1,065,000
4,880,000
2,432,000
747,000
6,815,000
10,888,000
104,000
3,468,000
8,792,000
1,658,000
4,564,000
283,000
137,000
8,343,500
3,270,000
1,122,000 ""817," 666"' 8,810,500
9,849,000
483,000
409,000

66,682,000

66,682,000

6,011,000

102,510,000

Net
credits.

June 22,
1916, balance in
fund after
clearing.

Settlement of June 22, 1916.

Transfers.

Gold.
Withdrawn.

.

600,000

""sso," 666"
150,000
4,104,000

Settlement of June 15,1916.

Total
debits.

Total
credits.

$9,665,000 i «9.879.000
18,041,000 15,768,000
10,445,000 11,153,000
1,748,000
1,677,000
8,118,000
7, 716,000
1,841,000 2,353,000
8,104,000
11,290,000
8,723,000
5,907,000
450,000
73,000
3,128,000
3j 261,000
718,000
459,000
328,000
95,000
70,470,000

70,470,000

259,000
233,000

$14,430,000
2,955,000
13,167,000
11,302,000
14,493,000
5,392,000
4,562,000
6,494,000
5,628,000
8,180,500
9,154,500
10,152,000

5,592,000

105,910,000

$214,000
708,000
71,000
402,000
512,000
2,816,000
377,000

Federal Reserve Agents' Fund—Summary of transactions, May 26, 1916, to June 22, 1916.
Week ending June 1,1916.
May 25,
1916,
balance.

Federal Reserve Agent at—

Philadelphia
Richmond
Atlanta .
Chicago
St. Louis
Minneapolis7
Kansas Citj . . .
Dallas
San Francisco

"

Total

Withdrawn.

Deposited.

$170,000

Balance.

$2,770,000
5,200,000
13,450,000
3,310,000
3,750,000
2 350 000
3 700,000
1,480,000
11,560,000

100,000
2,800,000

$760,000

$2,600,000
5 200 000
13,450,000
3,310,000
3,750,000
2,350,000
3,700,000
1,380,000
9,520,000

47,570,000

3,070,000

760,000

45,260,000

Week ending June 15,1916.

Week ending June 8,
1916i
Withdrawn.

Balance.

"$166/666"

$2,600,000
5.200,000
13,450,000
3,310,000
3.650,000
2,350,000
3,700,000
1,280,000
9,520,000

200,000

100,000

45,060,000

Week ending June 22,
1916.

Federal Reserve Agent at—

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




Withdrawn.

Deposited.

$200,000
100,000

$1,010,000

300,000

1,010,000

. .

Balance.

Withdrawn.

Balance.

$3,410,000
5,100,000 ""$i66,'666"
13 450 000
3,310,000
3,650,000
2,350,000 "i}bbb"3QQQ
3,700,000
1,280,000
650,000
9,520,000
170,000

$3,410,000
5,000,000
13,450,000
3,310,000
3,650,000
1,350,000
3,700,000
630,000
9,350,000

45,770,000

43,850,000

1,920,000

JULY 1, 1916.

FEDERAL RESERVE BULLETIN.

Amendments to Federal Reserve Act
In submitting its annual report to Congress
on February 1,1916, the Federal Reserve Board
made the following recommendations for
amendments to the Federal Reserve Act:
(1) In addition to powers now possessed in
this connection by Federal Reserve Banks and
national banks, the latter should be permitted
to subscribe for and hold stock in banks organized for the special purpose of doing a banking business in foreign countries.
(2) With the approval of the Federal Reserve
Board the issue of Federal Reserve notes to
Federal Reserve Banks should be permitted
either against the deposit of an equal amount;
face value, of
notes, drafts, bills of exchange,
and bankers7 acceptances acquired by Federal
Reserve Banks under sections 13 and 14 of the
Act, or of gold, or of both, provided, however,
that gold so deposited with a Federal Reserve
Agent shall count as part of the reserve required by the Act to be maintained by the
bank against such notes outstanding.
(3) The acceptance system, provision for
which is made in foreign-trade operations by
the Federal Reserve Act, should De extended
to the domestic trade in so far as relates to
documentary acceptances secured by shipping
documents or warehouse receipts, covering
readily marketable commodities or against the
pledge of goods actually sold.
There can be but little question of the safety
of such acceptances, and their use will tend to
equalize interest rates the country over and
help to broaden the discount market.
(4) Permission should be granted to national
banks to establish branch offices within the
city or within the county in which they are
located.
(5) In order to enable member banks to
obtain prompt and economical accommodations for periods not to exceed 15 days, the
Federal Reserve Banks should be permitted to
make advances to member banks against their
promissory notes secured by such notes, drafts,
bills of exchange, and bankers' acceptances as
the law at present permits to be rediscounted
or purchased; or against the deposit or pledge
of United States Government bonds, the purchase of which is now permitted under the law.
(6) The Board, furthermore, recommends
that the power of national banks to make
loans on farm lands as provided in section 24
be extended so as to permit any national bank
not situated in a central reserve city to make
loans secured by improved and unencumbered




323

farm land situated within its Federal Reserve
district, or within a radius of 100 miles from
the place in which such bank is located, irrespective of district lines. It also recommends
that the powers of national banks be further
extended to permit any such bank to make
loans on any improved and unencumbered real
estate located within 100 miles of the place in
which such bank is located, irrespective of
district lines; provided, however, that the aggregate of farm-land loans and other real estate
loans made by any national bank shall not
exceed 25 per cent of its capital and surplus or
one-third of its time deposits: and provided
further,, that no such real estate loan, as distinguished from a farm-land loan, shall exceed
a period of one year nor exceed 50 per cent of
the actual value of the property offered as
security.
It is believed that the enactment of these
amendments will, besides enlarging the useful™
.ness of the national banks, result in greatly
strengthening the operation of the Federal
Reserve Act, and more completely realize the
purposes of its framers. The text of the
amendments designed to carry out these
recommendations will be submitted by the
Board at an early date. The Board has under
consideration other suggestions for amendments
to the Federal Reserve Act concerning which
no conclusions have yet been reached, and
regarding which the Board will take occasion
to submit its views to the Congress at an appropriate time in the future.
There have been sent to Congress amendments carrying out the recommendations, and_
these amendments are now pending either in
committee or before one of the two Houses of
Congress For the information of those who
are .interested in them they are given below,
the new matter being printed in italics.
DOMESTIC ACCEPTANCES, AND OTHER MATTERS.

Be it enacted by the Senate and Souse of Representatives of
the United States of America in Congress qssembled, That
section thirteen of the Act approved December twentythird, nineteen hundred and thirteen, known as the
Federal Reserve Act, be amended to read as follows:
"Any Federal reserve bank may receive from any of its
member banks, and from the United States, deposits of
current funds in lawful money, national-bank notes, Federal reserve notes, or checks, and drafts ^jpea-eeiveafc
upon
and also, for
y payable
py
p presentation,
p
,
f
l l for
f purposes off excollection, maturing bills; or solely
change or of collection p^fpeseej may receive from other
Federal reserve banks deposits of current funds in lawful
money, national-bank notes, or checks afidr-fefcfts upon

324

FEDERAL RESERVE BULLETIN.

JULY 1,

1916.

e¥ other Federal reserve banks, and checks of discount of not more than three months' sight, exclusive of
and drafts, payable upon presentation within its district, and
maturing hills payable within its district.

'•'Upon the indorsement of any of its member banks?
fej any Federal reserve bank may discount notes,
drafts, and bills of exchange arising out of actual commercial transactions: that is, notes, drafts, and bills of exchange issued or drawn for agricultural, industrial, or commercial purposes, or the proceeds of which have been
used, or are to be used, for such purposes, the Federal Reserve Board to have the right to determine or define the
character of the paper thus eligible for discount, within the
meaning of this act. .Nothing in this act contained shall
be construed to prohibit such notes, drafts, and bills of
exchange, secured by staple agricultural products, or other
goods, wares, or merchandise from being eligible for such
discount; but such definition shall not include notes,
drafts, or bills covering merely investments or issued or
drawn for the purpose of carrying or trading in stocks,
bonds, or other investment securities, except bonds and j
notes of the Government of the United States. Notes,
drafts, and bills admitted to discount under the terms of
this paragraph must have a maturity at the time of discount of not more than ninety days-: , exclusive of days of

days of grace, and which are indorsed by at least one member
bank.
" A n y member bank may accept drafts or bills of exchange drawn upon it aad-gfewiag-ett^-el-^fftRSSfcefeieeB-ffl-not more than six months' sight to run, exclusive of days of
grace, which grow out of transactions involving the importation or exportation of goods; or which grow out of transactions involving the domestic shipment of goods, provided
shipping documents are attached at the time of acceptance; or
which are secured at the time of acceptance by a vjarehouse receipt or other such document affording security title covering
readily marketable staples, or by ihe pledge of goods actually
sold. No member bank shall accept, whether in a foreign or
domestic transaction, for any one person, company, firm, or
corporation to an amount equal at any lime in the aggregate
to more- than ten per centum of its paid-up and unimpaired
capital stock and surplus unless the bank is secured either by
attached documents or by some other actual security growing
out of the same transaction as the acceptance andfe&Bno bank

shall accept such bills to an amount equal at any time in
the aggregate to more than one-half of its paid-up and unimpaired capital stock and surplus, except by authority
of the Federal Reserve Board, under such general regulafivace.
tions as said board may prescribe, but not to exceed the
"Provided, That notes, drafts, and bills drawn or issued capital stock and surplus of such bank, and such regulafor agricultural purposes or based on live stock and having tions' shall apply to all banks alike regardless of the amount
a maturity not exceeding six months, exclusive of days of of capital stock and surplus.
11
grace, may be discounted in an amount to be limited to a
Any Federal reserve bank may make advances to its mempercentage of the capital of the Federal reserve bank, to ber banks on their promissory notes for a period not exceeding
be ascertained and fixed hv the Federal Keserve Board. fifteen days at rates to be established by such Federal reserve

^
^^

" T h e aggregate of such notes, drafts, and bills bearing
the signature or indorsement of any one borrower, whether
a person, company, firm, or corporation rediscounted for
any one bank shall at no time exceed ten per centum of
the unimpaired capital and surplus of said bank* fe«t4Ms
¥este4etiea~s]3:all~»^^
ebaage—&?awft—ia—
¥al«ee: Provided, however, That this restriction shall not
apply to the discount of bills of exchange drawn in good faith
against actually existing values nor to commercial or business
paper which represents an actual debt for goods sold and which
is owned by the person, firm, or corporation discounting it
•with such member bank.
' i Any Federal reserve bank may discount acceptances of the
hinds hereinafter described, which have a maturity at the time




banks, subject to the review and determination of the Federal
Reserve Board,, provided such promissory notes are secured by
such notes, drafts, bills of exchange, or bankers' acceptances as
are eligible for rediscount or for purchase by Federal reserve
banks under the provisions of this Act, or by the deposit or
pledge of bonds or notes of the United States.

"'Section fifty-two hundred and two of the Revised
Statutes of the United States is hereby amended so as to
read as follows: No national banking association shall at
any time be indebted, or in any way liable, to an amount
exceeding the amount of its capital stock at such time
actually paid in and remaining undiminished by losses
or otherwise, except on account of demands of the nature
following:
"First. Notes of circulation.
"Second. Moneys deposited with or collected by the
association.
Ii
Third. Bills of exchange or drafts drawn against money
actually on deposit to the credit of the association, or due
thereto.
"Fourth. Liabilities to the stockholders of the association for dividends and reserve profits.
"Fifth. Liabilities incurred under the provisions of the
Federal Reserve Act.
I1
The discount and rediscount and the purchase and sale
by any Federal reserve bank of any bills receivable and

JULY 1, 1916.

FEDERAL RESERVE BULLETIN.

325

of domestic and foreign bills of exchange, and of accept- issued through one Federal reserve bank shall be received
ances authorized, by this Act, shall be subject to such by another Federal reserve bank they shall be promptly
restrictions, limitations, and regulations as may be im- returned for credit or redemption to the Federal reserve
bank through which they were originally issued, or, upon
posed by the Federal Reserve Board."
Any member' han't may accept drafts or bills of exchange direction of such Federal reserve bank, they shall be forwarded
drawn upon it having not more than three months' sight to direct to the Treasurer of the United States to be retired. No
run, exclusive of days of grace, drawn under regulations to be Federal reserve bank shall pay out notes issued through
prescribed by the Federal Reserve Board by banks or bankers another under penalty of a tax of ten per centum upon the
in foreign countries or dependencies or insular possessions of face value of notes so paid out. Notes presented for
the United States for the purpose of furnishing dollar exchange redemption at the Treasury of the United States shall be
as required by the usages of trade in the respective countries, paid out of the redemption fund and returned to the Feddependencies, or insular possessions. And such drafts or eral reserve banks through which they were originally
bills may be acquired by Federal reserve banks in such amounts issued, and thereupon such Federal reserve bank shall,
and subject to such regulations, restrictions, and limitations upon demand of the Secretary of the Treasury, reimburse
such redemption fund in lawful money, or, if such Federal
as may be prescribed by the Federal Reserve Board.

reserve notes have been redeemed by the Treasurer in gold
or gold certificates, then such funds shall be reimbursed to
That section sixteen, paragraphs two, three, four, five, the extent deemed necessary by the Secretary of the
six, and seven of the Act approved December- twenty- Treasury in gold or gold, certificates, and such Federal
third, nineteen-hundred and thirteen, known as the Fed- reserve bank shall, so long as any of its Federal reserve
eral Reserve Act, be amended and reenacted so as to read notes remain outstanding, maintain with the Treasurer in
gold an amount sufficient in 'the judgment of the Secretary
as follows:
"Any Federal reserve bank may make application to the to provide for ail redemptions to be made by the Treasurer.
local Federal reserve agent for such amount of the Federal Federal reserve notes received by the Treasurer, otherwise
reserve notes hereinbefore provided for as it may require. than for redemption, may be exchanged for gold out of the
Such application'shall be accompanied with a tender to the redemption fund hereinafter provided and returned to the
local Federal reserve agent of collateral in amount equal to reserve bank through which they were originally issued, or
the sum of the Federal reserve notes thus applied for and they may be returned to such bank for the credit of the
issued pursuant to such application. The collateral United States. Federal reserve notes unfit for circulation
security thus offered shall be notes, drafts, bills of exchange, shall be returned by the Federal reserve agents to the
or acceptances aeee^te4-lep-Fe4isee«fit rediscounted under Comptroller of the Currency for cancellation and destructhe provisions of section thirteen of this Act, or bills of tion.
exchange indorsed by a member- bank of any Federal reserve
"The Federal Reserve Board shall require each. Federal
district and purchased under the provisions of section fourteen reserve bank to maintain on deposit in the Treasury of the
of this Act, or hankers' acceptances purchased under the pro- United States a sum in gold sufficient, in the judgment of
visions of said section fourteen, or gold or gold certificates. Secretary of the Treasury, for the redemption of the Fedastd The Federal reserve agent shall each day notify the eral reserve notes issued to such bank, but in no event less
Federal Reserve Board of all issues and withdrawals of than five per centum of the total amount of notes issued less
Federal reserve notes to and by the Federal reserve bank the amount of gold or gold certificates held by the Federal
to which he is accredited. The said Federal Reserve reserve agent as collateral security; b u t such deposit of gold
Board may at any time call upon a Federal reserve bank shall be counted and included as part of the forty per
for additional security to protect the Federal reserve notes centum reserve hereinbefore required and shall be counted
and considered as if collateral security deposited with the
issued to it.
"Every Federal reserve bank shall maintain reserves in Federal reserve agdnt. The board shall have the right,
gold or lawful money of not less than thirty-five per centum acting through the Federal reserve agent, to grant, in
against its deposits and reserves in gold of not less than whole or in part or to reject entirely, the application of
forty per centum against, its Federal reserve notes in actual any Federal reserve bank for Federal reserve notes; but
circulation: Provided, however, Thai ivhen the Federal re- to the extent that such application may be granted the
serve agent holds gold or gold certificates as collateral for Fed- Federal Reserve Board shall, through its local Federal
eral reserve notes issued to the bank the reserve that such bank is reserve agent, supply Federal reserve notes to the bank
required to maintain against its Federal reserve notes in actual so applying, and such bank shall be charged with the
circulation shall be reduced in a corresponding amount,
4 amount of such notes issued to it and shall pay such rate
of interest oB-said-ameft&fc as may be established hy the
ai-fteseFPe-agefifc- Notes so paid out shall bear upon Federal Reserve Board aa4-4ke-aBaeeefc-ef on only that
their faces a distinctive letter and serial number, which amount of such notes which equals the total amount of its
shall be assigned by the Federal Reserve Board to each outstanding Federal reserve notes less the amount of gold or
Federal reserve bank. Whenever Federal reserve notes gold certificates held by the Federal reserve agent as collateral




FEDERAL RESERVE NOTES.

326

FEDERAL RESERVE BULLETIN.

security. Federal reserve notes as issued to any such bank
shall, upon delivery, together with such notes of such
Federal reserve bank as may be issued under section
eighteen of this Act upon, security of United States two
per centum Government bonds, become a first and paramount lien on all the assets of such bank.

JULY 1, 1916.

lines; but no meh loan made upon the security of such farm
land shall be made for a longer time than five years, and
no loan made upon the security of such real estate as distinguished from farm land shall be made for a longer time than
one year nor fe^-as shall the amount of any such loan,
whether upon such, farm land or upon such real estate, exeeedifig exceedfiftyper centum of the actual value of the property offered as security. Any such bank may make such
loans, whether secured by such farm land or such real estate,
in an aggregate sum equal to twenty-five per centum of its
capital and surplus or to one-third of its time deposits and
such banks may continue hereafter as heretofore to receive
time deposits and to pay interest on the same.
"The Federal Reserve Board shall have power from
time to time to add to the list of cities in which national
banks shall not be permitted to make loans secured upon
real estate in the manner described in this section."

"Upon the request of the Secretary of the Treasury the
Federal Reserve Board shall require the Federal reserve BANKING CORPORATIONS AUTHORIZED TO DO FOREIGN
BANKING BUSINESS.
agent to transmit ee-Bittefe-e^fee-paM-geM- to the Treasurer
of the United States so much of the gold held by him as col- That section twenty-Jive of the Act approved December
lateral security for Federal reserve notes as may be requiredtwenty-third, nineteen hundred and thirteen, known as the
for the exclusive purpose of the redemption of saeferHetes Federal Reserve Act, be amended to read as follows:
Federal reserve notes.
"Sec. 25. Any national banking association possessing a
"Any Federal reserve bank may at its discretion with- capital and surplus of $1,000,000 or more may file applicadraw collateral deposited with the local Federal reserve tion with the Federal Reserve Board for permission to exercise,
agent for the protection of its Federal reserve notes upon such conditions and under such regulations as may be
^e-peeited-wi^fe-i-o issued to it, and shall at the same time prescribed by the said board, either or both of the following
substitute therefor other like collateral of equal amount powers:
with the approval of the Federal reserve agent under regu"First. To establish branches in foreign countries or delations to be prescribed by the Federal Reserve Board. pendencies or insular possessions of the United States for the
Any Federal reserve bank may retire any of its Federal reserve
furtherance of the foreign commerce of the United States, and
notes by depositing them with the Federal reserve agent or to act if required to do so asfiscalagents of the United States.
with the Treasurer of the United States, and such Federal icSecond. To invest an amount not exceeding in the aggrereserve bank shall thereupon be entitled to receive bach thegate ten per centum of its paid-in capital stock and surplus in
collateral deposited with the Federal reserve agent for the the stock of one or more banks or corporations chartered or insecurity of such notes. Federal reserve banks shall not be corporated under the laws of the United States or of any State
required to maintain the reserve or the redemption fund here- thereof, and principally engaged in international or foreign
tofore provided for against Federal reserve* notes which have
banking, or banking in a dependency or insular possession of
been retired; nor shall they be further liable to pay any in- the United States either directly or through the agency, ownerterest charge which may have been imposed thereon by the ship, or control of local institutions in foreign countries, or in
Federal Reserve Board. Federal reserve notes so deposited such dependencies or insular possessions.
shall not be reissued except upon compliance vAih the con"Such application shall specify the name and capital of the
ditions of an original issue"
banking association filing it, the powers applied for, and the
place or places where the banking operations proposed are to
LOANS ON REAL ESTATE.
be carried on. The Federal Reserve Board shall have power to
That section twenty-four of the Act approved December approve or to reject such application in whole or in part if for
twenty-third, nineteen hundred and thirteen, known as any reason the granting of such application is deemed inexpedient, and shall also have power from time to time to increase
the Federal Reserve Act, be amended to read as follows:
"Any national banking association not situated in a or decrease the number of places where such banking operations
central reserve city may make loans secured by improved may be carried on.
"Every national banking association operating foreign
and unencumbered farm land situated within its Federal
reserve district or within a radius of one hundred miles of branches shall be required to furnish information concerning
the condition of such branches to the Comptroller of the Curthe place in 'which such bank is located, irrespective of district
rency upon demand, and every member bank investing in the
lines-, and may also make loans secured by improved and unencumbered real estate located within one hundred miles of the capital stock of banks or corporations described under subparaplace in which such bank is located, irrespective of district graph two of thefirstparagraph of this section shall be required




JULY 1,

to furnish information concerning the condition of such banks
or corporations to the Federal Reserve Board upon demand,
and the Federal Reserve Board may order special examinations
of the said branches, banks, or corporations at such time or
times as it may deem best.
li
Before any national bank shall be permitted to purchase
stock in any such corporation the said corporation shall enter
into an agreement or undertaking -with the Federal Reserve
Board to restrict its operations or conduct its business in
such manner or under such limitations and restrictions as
the said board may prescribe for the place or places wherein
such business is to be conducted. If at any time the Federal
Reserve Board shall ascertain that the regulations prescribed
by it are not being complied with, said board shall be authorized
and shall have power to institute an investigation of the matter
and to send for persons and papers, subpoena witnesses, and
administer oaths in order to satisfy itself as to the actual
nature of the transactions referred to. Should such investigation result in establishing the failure of the corporation
in question, or of the national bank or banks which may
be stockholders therein, to comply with the regulations laid
down by the said Federal Reserve Board, such national banks
may be required to dispose of stock holdings in the said corporation upon thirty days' notice, and in the event of their
noncompliance with such order the Federal Reserve Board
may direct the Comptroller of the Currency to institute proceedings for forfeiture of charter.
u
Every such national banking association shall conduct the
accounts of each foreign branch independently of the accounts
of other foreign branches established by it and of its home
office, and shall at the end of each fiscal period transfer to its
general ledger the profit or loss accruing at each branch as a
separate item.
"Any director or other officer, agent, or employee of any
member bank may, with the approval of the Federal Reserve
Board, be a director or other officer, agent, or employee of any
such bank or corporation above mentioned in the capital stock
of which such member bank shall have invested as hereinbefore provided, 'without being subject to the provisions of
section eight of the Act. approved October fifteenth, nineteen
hundred and fourteen, entitled i;An Act to supplement exist-'
ing laws against unlawful restraints and monopolies, and
for other purposes.'"

under such rules and regulations as such board may prescribe,
establish branches within the limits of the county in which it
is located or within a radius of twenty-five miles of the place
in ivhich such bank is situated, irrespective of county lines:
Provided, That no such branch shall be established outside of
its State or of its Federal reserve district, nor shall such branch
be established unless the capital of the parent bank is at least
equal to the aggregate of the amounts ivhich would be required
of each branch under the provisions of section fifty-one hundred and thirty-eight, Revised Statutes, if it were organized as
an independent association, together with the amount required
of the parent bank itself by that section."
SECTION 11.

Amend section 11 by adding a clause " m " as follows:
(m) Upon the affirmative vote of not less than five of its
members, the Fedeal Reserve Board shall have poiver, from
time to time, by general ruling, covering all districts alike,
to permit member banks—
/ . To carry in the Federal reserve banks of their respective
districts any portion of their reserves now required by section
19 of this Act to be held in their own vaults.
2. To count as part of their lawful reserves Federal reserve
notes of their own district not exceeding in the aggregate an
amount equal to five per centum of their net demand deposits.

Commercial Failures in .May.
Commercial failures in Federal Reserve districts during the month of May, as compiled
by R. G. Dun & Co. for the Federal Reserve
Bulletin, are considerably less in number and
in the liabilities represented than those for the
corresponding month in 1915, but greater in
number than the May failures in 1913 and
1914. They are, however, not so large in
liabilities as in 1914. The total failures in
May, 1916, were 1,482 and the liabilities
represented were $19,466,436;
District.

DOMESTIC BRANCHES.

That the Act approved December twenty-third, nineteen hundred and thirteen, known as the Federal Reserve
Act, be amended by adding a new section, as follows:
u
Sec. 25c. That any national banking association located
in a city or incorporated town or village of more than one hundred thousand inhabitants and possessing a capital and surplus
of $1,000,000 or more may, under such rules and regulations
as the Federal Reserve Board may prescribe, establish branches
within the corporate limits of the city, town, or village in
ivhich it is located.
" Any notional banking association located in any other
place may, with the approval of the Federal Reserve Board, and




827

FEDERAL RESERVE BULLETIN.

1916.

No. 1...
No. 2 . .
No. 3...
No. "4...
No. 5...
No. 6...
No. 7...
No.8...
No. 9...
No. 10..
No. 11..
No. 12..
Total 1916..
1915..
1914..
1913..

Number
of
Liabilities.
failures.
157
312
73
98
79
115
220
98
38
68
81
143

$1,239,043
6,914,971
716,787
736,195
783,480
3,947,950
1,882,586
763,712
258,850
519,774
707,572
995,516

1,482
1,707
1,221
1,246

19,466,436
21,053,212
23,447,496
16,863,804

328

FEDERAL RESERVE BULLETIN.

Fiduciary Powers.

JULY 1,

1916.

DISTRICT NO. 10.

Trustee, executor, administrator, and registrar of stocks

Applications from the following banks for
and bonds:
permission to act under section il(k) of the
First National Bank, Denver, Colo.
Federal Reserve Act have been approved by
DISTRICT NO. 12.
the Board since the issue of the June Bulletin,
as follows:
Trustee, executor, administrator, and registrar of stocks
DISTRICT NO. 1.

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

2.

Trustee, executor, and administrator:
Atlantic Highlands National Bank, Atlantic Highlands, N. J.
DISTRICT NO. 3.

Trustee, executor, administrator, and registrar of stocks
and bonds:
First National Bank, Nanticoke, Pa.
DISTRICT No.
4

6.

Trustee, executor , administrator, and registrar of stocks
and bonds:
Calcasieu National Bank of Southwest Louisiana,
Lake Charles, La.
Tennessee-Hermitage National Bank, Nashville, Tenn.




and bonds:
First National Bank, Corvallis, Oreg.

Full Acceptance Powers Granted.
The American National Bank, San Francisco, CaL, the Chemical National Bank, New
York City, and the Chase National Bank,
New York Ciij? have recently been granted
authority by the Federal Reserve Board to
accept drafts or bills of exchange up to 100 per
cent of their capital and surplus under the
Federal Reserve Act.
All member banks may, without special
permission, accept to 50 per cent of their capital
and surplus.

CHART ILLUSTRATING THE TOTAL INDIVIDUAL DEPOSITS AND THE TOTAL INDIVIDUAL PLUS BANK DEPOSITS
OF NATIONAL BANKS, GIVEN BY GROUPS, TAKEN FROM THE VARIOUS CALLS OF THE COMPTROLLER OF THE CURRENCY, JUNE 30, 1914, TO MARCH 7, 1916, INCLUSIVE.
[The top line, or edge, in each of the four curves indicates Individual deposits plus
Bank deposits; while the lower iine$ or edge, indicates Individual deposits only—hence
the shaded portion represents, by its thickness, the volume of Bank deposits.]

I

Millions
of
Dollars
4,600-

I

4,400

/
/

I

i

J
4,200

r-j
/

J

— ,

k

o

•

—.
r-i

to

ca

• O -

H

C»
#

•

OrirH

11°




7V>

|>

•t.

>>

a

SJ

CO

J3

Pfi)

>-3

O

rH

^5
CO

o

o

fH

rH

to

55

i-a

o

u
0>
38

CO

rH

o

rH
to

•eft

i

rH

i

III'H

to
CO

C\2
rH

rH
to

a)

o

a>

cj

ccJ

w o

Q

a

a **?

P

ca

mmtSS—
rH
CO
rH

o

1-ir—
C-

FEDERAL RESERVE BULLETIN.

JULX 1,1916.

329

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

"Can a person be a director and officer of a
New Jersey trust company with a capital of
$1,000,000 and total resources over $5,000,000
in a city of over 200,000 inhabitants and at the
same time serve as a director and officer of a
national bank having a capital of $50,000,
total resources of under $2,000,000, in a municipality of less than 20,000 inhabitants?"
It is presumed that the trust company is not
a member of the Federal Reserve system.
In reply you are advised that under the provisions of the Clayton Antitrust Act a person
can not serve at the same time as a director
of a national bank and a trust company under
the circumstances recited, but the Act does not
prohibit his serving at the same time as a
director and officer in one and as an officer in
the other.
Your attention is also called to the fact that
under the Kern amendment to the Clayton Act,
approved May 15, 1916, a person having first
obtained the consent of the Federal Reserve
Board, might serve at the same time as a
director in both of the above-mentioned institutions, provided the trust company is not
in substantial competition with the member
bank.

In reply to your recent letter, you aro advised
that the ruling concerning cattle paper printed
on page 65 of the February Bulletin relates to
the right of a Federal Reserve Bank to purchase
domestic bankers' acceptances secured by a
chattel mortgage on cattle.
National banks have no authority in law to
accept domestic drafts of any kind, so the above
ruling has no application to such banks or to
their right to loan on cattle.
In any event, the ruling should not be construed to affect the provisions of section 5200,
Revised Statutes, which limits the amount
which a national bank may loan to any one
borrower to 10 per cent of its capital and
surplus. The fact that a note or draft discounted by a national bank may be secured by
cattle would not of itself bring it within the
exceptions to section 5200, unless it is comJUNE 8, 1916.
mercial or business paper actually owned by
the person negotiating the same, or unless it is
Circulars and Regulations for 1916.
a bill of exchange drawn in good faith against
Your letter of June 21st is received and I am
actually, existing values.
directed
by the Board to say to you that it
MAY 26, 1916.
has delayed the issuance of its circulars and
regulations for 1916 in the hope that there
may be incorporated in them any changes
Clayton Act.
made necessary by the passage of amendThere has been referred to this office for ments to the Federal Reserve Act, submitted
attention your letter of May 31, addressed to by the Board and now pending before
the Comptroller, of the Currency and sub- Congress.
JUNE 23, 1916.
mitting the following question:
46718—16




4

330

FEDERAL RESERVE BULLETIN";

JULY 1, 1916.

LAW DEPARTMENT.
The following opinions of counsel have been year notes as the Secretary may tender to
authorized for publication by the Board since such bank in the first instance in exchange for
the 2 per cent United States gold bonds; said
the last edition of the Bulletin:
obligation to purchase at maturity such notes
shall continue in force for a period not to
One-Year Gold Notes.
exceed 30 years.
The obligation of a Federal Reserve Bank to renew
It will be observed that as a condition of the
one-year gold notes which it has received in exchange
for United States 2 per cent bonds cannot be transferred issue of such notes the Secretary must require
to another Federal Reserve Bank. The obligation to the Federal Reserve Bank to enter into an
renew is binding upon the original bank, at the option of obligation binding itself to purchase from the
the Secretary of the Treasury, for a period not to exceed
30 years, though such bank may enter into a contract United States at the maturity of such one-year
with another corproration or individual to buy such re- notes an amount equal to those delivered in
newal notes from it when issued. Nothing in the Act exchange for such bonds, if so requested by
prevents the sale of one-year notes to a purchaser, who will the Secretary. This agreement is a collateral
be entitled to receive payment from the Government at agreement entered into as between the Secmaturity.
retary of the Treasury and the Federal Reserve
MARCH 10, 1918.
SIR: This office has been requested to give Bank. It is not a part of the contract conan opinion on the question of whether or not tained in the note itself. The Federal Reserve
the Secretary of the Treasury can by agree- Bank procuring such notes may dispose of
ment relieve a Federal- Reserve Bank from its them as it sees fit, and any purchaser would
obligations to renew one-year gold notes of hold them free from any equities or obligations
the United States, issued in exchange for 2 that may exist as between the Federal Reserve
per cent bonds bearing the circulation privi- Bank and the Secretary of the Treasury.
lege, and can accept in lieu thereof the obli- While the purchaser may agree either at the
gation of another Federal Reserve Bank time of purchase or subsequent thereto to
purchasing such notes from the bank to which purchase from the Federal Reserve Bank any
notes which it may be required under its conthey were originally issued.
tract to buy from the United States each sucSection 18 of the Federal Reserve Act,
ceeding year, this collateral agreement would
after providing for the exchange by Federal
be wholly independent of that entered into as
Reserve Banks of United States 2 per cent
between the Secretary of the Treasury and the
bonds bearing the circulation privilege for
Federal Reserve Bank at the time of' the exone-year gold notes of the United States and
change of notes for bonds bearing the circu30-year 3 per cent bonds, provides—
lation privilege.
That at the time of such exchange the FedIn other words, let us assume that a Federal
eral Reserve Bank obtaining such one-year
Reserve
Bank procures one hundred $1,000
gold notes shall enter into an obligation with
the Secretary of the Treasury binding itself notes in exchange for 2 per cent bonds.
to purchase from the United States for gold at When these notes are delivered the bank is
the maturity of such one-year notes an amount required to execute an agreement that at
equal to those delivered in exchange for such maturity of such notes it will purchase an
bonds, if so requested by the Secretary, and
at each maturity of one-year notes so purchased equal amount of new notes to be issued by the
by such Federal Reserve Bank to purchase Secretary. The bank, however, may dispose
from the United States such an amount of one- of the whole or any part of such notes and the




FEDERAL RESERVE BULLETIN.

JULY 1,1916.

holder may present them to the Treasurer for
payment at maturity. When the Treasurer Is
called upon to pay these notes the Secretary,
in order to provide the necessary gold, calls
upon the original Federal Reserve Bank to
purchase new notes of a like amount, and while
that bank may have a collateral8 agreement to
sell these notes to a third party this contract
would not in any way effect that entered into
between the Secretary and the Federal Reserve Bank.
The statute, therefore, merely creates a fixed
market for these notes for a period of 30
years, and as a condition of their issue in the
first instance the Secretary is required to procure this agreement from the Federal Reserve
Bank to which they are issued. As he could
not issue these notes without this contract
it seems clear that he could not subsequently
waive its provisions and accept in lieu thereof
the obligation of some other bank.
Respectfully,
M. C. ELLIOTT, Counsel,
To Hon. CHARLES S. HAMLIN,

Governor Federal Reserve Board.
Deposit of Postal Funds in Nonmember Banks.
Section 15 of the Federal Reserve Act, which, prohibits
the deposit of any Government funds in nonmember
banks, operates as a repeal of so much of section 3847,
United States Revised Statutes, as amended by the Act
of May 27, 1908, as authorizes postmasters to deposit
public moneys in State as well as national banks. By an
act approved May 18,1916, postal saving deposits may under certain conditions be deposited in nonmember banks.
JUNE 5,

1916.

SIR: The attached letter submits to this
office for an opinion the question whether a
deposit of postal funds by a postmaster in
nonmember banks constitutes a violation of
the provisions of section 15 of the Federal Reserve Act.
Section 3847, Revised Statutes, authorizes
"any postmaster having public money belonging to the Government77 to deposit the same,
under certain circumstances, "at his own risk
and in his official capacity in any national bank
in the town, city, or county where the said postmaster resides.77




331

This section was amended by the Act of May
27, 1908, so as to provide that such deposits
may be made by any postmaster ""at his own
risk and in his official capacity in any national
or State bank in the State where the said postmaster resides/7
It is evident, therefore, that under the provisions of section 3847, Revised Statutes, as
amended by the Act. of May 27, 1908, postmasters were authorized to deposit public moneys
at their own risk in State as well as national
banks.
Section 15 of the Federal Reserve Act provides in part that—
No public funds of the Philippine Islands, or
of the postal savings, or any Government funds
shall be deposited in the continental United
States in any bank not belonging to the system
established by this Act,
The Federal Reserve System was created
after the passage of section 3847, Revised Statutes, and the amendment of May 27, 1908.
Under its terms both State and national banks
may become members of this system. The
manifest effect of section 15 of the Federal Reserve Act is to modify or further amend section
3847, Revised Statutes, by providing that those
State and national banks which become members of the Federal Reserve System may still be
used as depositories of public funds by postmasters. It is true that section 15 does not
refer in terms to section 3847, Revised Statutes, but it deals with the same subject matter,
namely, the deposit of public moneys or moneys
belonging to the Government. While more
general in its terms in so far as it is inconsistent
with the previous acts of Congress, it operates
as a repeal.
The American and English Encyclopedia of
Law, volume 26, page 723, in a discussion of the
various rules of statutory construction, states
that—
If two statutes on the same subject are mutually repugnant, the later act without any repealing clause operates, in the absence of expressed intent to the contrary, as a repeal of
the earlier one, on the obvious principle that
the enactment of provisions inconsistent with
those previously existing manifests a clear
intent to abolish the old law.

332

FEDERAL RESERVE BULLETIN.

See also Henderson's Tobacco Co. (11 Wall.,
657).
It would have been futile for Congress to attempt to repeal specifically every statute authorizing any public officer to deposit Government funds in banks other than member banks
when the same result could be reached very
directly and very simply by the phrase actually employed by Congress.
In the opinion of this office, therefore, postmasters are not authorized by law, since the
passage of the Federal Reserve Act, to deposit
public moneys in a State bank which is not a
member of the Federal Reserve System.
As postmasters discharge their duties under
the supervision of the Postmaster General, it
is respectfully suggested that the matter be
brought to his attention in order that he may
take such action as he may deem necessary in
the premises to insure a compliance with the
acts of Congress on this subject.
This opinion is not intended to refer to postal
savings funds, which under certain specified
conditions may be deposited in -nonmember
banks. See section 2 of the act approved May
18, 1916, amending the Act authorizing the
postal savings system.
Respectfully,
M. C. ELLIOTT, Counsel.
To Hon. CHARLES S. HAMLIN,

Governor Federal Reserve Board.

Withholding National Bank Notes from Circulation.
National banks are prohibited by section 5207, United
States Revised Statutes, from offering or receiving national
banknotes as security for any loan of money or from agreeing
for a consideration to withhold the same from circulation.
JUNE 20,

1916.

SIR: I have your memorandum of June 13
asking whether the provisions of section 5207,




JULY 2,

1916.

Revised Statutes, are violated by the following
case:
a
A national bank carries in its cash two
envelopes containing $20,000 in circulating
notes of another national bank, which were
received from a savings and trust company,
and are held under a verbal agreement whereby
the same notes are to be returned to the savings and trust company upon, demand. From
a memorandum on each envelope it appears
that the national bank to which these notes
were originally issued deposited them with the
savings and trust company and received a certificate of deposit for $20,000 under an agreement that the same notes were to be held by
the savings and trust company and returned
upon the surrender of the certificate of deposit."
Section 5207, United States Revised Statutes, provides—
No association shall hereafter offer or receive
United States notes or national bank notes as security or as collateral security for any loan of
money, or for a consideration agree to withhold the same from use, or offer or receive the
custody or promise of custody of such notes as
security, or as collateral security, or consideration for any loan of money. Any association
offending against the provisions of this section
shall be deemed guilty of a misdemeanor and
shall be fined not more than one thousand
dollars and a further sum equal to one-third of
the money so loaned. The officer or officers
of any association who shall make any such
loan shall be liable for a further sum equal to
one-quarter of the money loaned; and any
fine or penalty incurred by a violation of this
section shall be recoverable for the benefit of
the party bringing such suit.
The facts, as stated, constitute an apparent
violation of section 5207.
Respectfully,
M. C. ELLIOTT, Counsel.
To Hon.

JOHN SKELTON WILLIAMS,

Comptroller of the Currency.

333

FEDERAL RESERVE BULLETIN.

JULY 1,1916.

SUMMARY OF -BUSINESS IN THE UNITED STATES.
No.
No. 2— District
3—PhilaDistrict No. 1—Boston. District
New York.
delphia,
General business
Crops:
Condition
Outlook
Industries of the district.
Construction: Building and engineering.
Foreign trade

Excellent, with some
signs of temporary
slackening.
Satisfactorj7"
Good

Quieter
between seasons.
Generally
backward.
Fine weather
needed.

Busy catching up on
old contracts; new
business not so pressing.
Highest for many Increasing
years.

Exports and imports
decreased from last
month, but show an
increase over last
year.

District No. 4—Cleveland.

Very good. Continues good.. - „

District No. 5—
Richmond.

Good; exception,
lumber. ||g -,-.

Good

Good?'- w. t i f 1

Wheat and corn fair; tobacco Fair to good.
and hemp good.
. . . . d o . . . . Increase in " tobacco and Favorable
hemp will offset poorer
crops of grain.
Very busy. All working to capacity
Active.
Fair

Fairly active'.

Improving 30 per cent over
same month last year.
Warehouse building very
good; home building backward.

Great increase. Growing.

Normal to
proving.

Average crops.
All operating full
time.
im-

Coal, large; tobacco, fair.

Increase over last year; Large increase. Increasing. Averaging3 percent increase
decrease from *last
over" period last year and
month.
5 per cent over last month.
Money rates
Increasing fractionally. M a r k e d in- Very slight Slight hardening of rates;
crease and
commercial paper about f
increase.
firmness.
per cent higher than last
month.
Railroad, post-office, Increased.
Increasing
Post-oflice receipts 17 per
and other receipts.
cent over last year, but 3
per cent less than last
month.
More settled, Serious
Improved over last month.
Labor conditions... Scarce..
except on
More wage advances.
railroads.
Satisfactory.. Good
Nothing unfavorable to conOutlook
Good..
tinuance of present conditions.
Smaller manufacturers feel
Greater cauRemarks
increased prices for raw
tion as to
material.
future.
District No. 7—
Chicago.

Crops:
' Condition.
Outlook.

Still brisk in most
lines.
Fair
Improving slightly...

District No. 8—
St. Louis.

District
No. 9—
Minneapolis.

District No. 10—Kansas
City.

Active; funda- Good
Good
mently
sound.
Good except Very good. Better than normal.
wheat.
Bright
.'
Satisfactory... ...do

Industries of the district.

Active

Prosperous;
capacity
near maximum.

Fully employed.

Report fine; increase over
last year.

Construction: Building and engineering.
Foreign trade

In manufacturing centers active.

Good..

Brisk.

On the increase.

Normal

Bank clearings

Chicago, d e c r e a s e ;
country, increase.
Increasing slightly...

Modera t e
(flour
a n d
wheat).
Increased. Increase

Money rates

Railroad, post office,
and other receipts.

Increase..

Discount rates No change. Unchanged, but
s t a t ionary,
predicted.
c ommercial
a p e r
Increase..

Larger

Labor conditions

Good...

Satisfactory... Fair

Outlook..
Remarks.

Satisfactory
Business conditions
active. No falling
off.

Promising




Fair.

Dull; accoun
transportation.

••

Bank clearings

General business

District No. 6—
Atlanta.

increase

Considerably increased over
last year.

Unsettled.

Bright
Good
District is General conditions are most
satisfactory.
prosperous with
good
outlook.

IncreaseEasy; some hardening tendency.

Normal.

Above average

Increasing.

Fully employed;
in demand.

Satisfactory.

Promising

Bright.

District No. 11—
Dallas.

District No. 12—
San Francisco.

Satisfactory

Better than normal.

Good

Damaged in some
sections.
Promising 75 to 90 Good.
per cent normal.
Mining very active; lumbering
above
normal;
live stock good
condition, prices
above normal.
Active, but small Increase 32 per
decrease o v e r
cent.
1915.
Increasing.
Good

Increase over 15
per cent.
Steady; no material change.

Increase 31 p e r
cent.
Slight increaase.

Railroad receipts, Increasing.
freight, 12 per
cent increase;
passenger, 50 per
cent increase.
Very satisfactory- All available labor
skilled and unemployed. Unskill well emsettled.
ployed.
Good
Promising.
Satisfactory condition exists except in southwest and extreme w e s t
Texas.

334

FEDERAL RESERVE BULLETIN".

JULY 1, 1916.

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

Exceptionally heavy buying in the late winter and spring has filled the manufacturer's
books with advance orders on which deliveries
will not be completed for some months. Buyers
urged on by rapidly rising prices, it would seem,
have placed orders further ahead than ever before. Naturally a situation of this sort could
not continue indefinitely, and reports coming to
us now indicate much saner purchasing and
selling.
It appears that the district is at present in
what might be termed a digestive period. It is
now between seasons in many lines. The
spring buying in general is over and it is too
early to place fall orders. The late spring
and inclement weather has retarded retail
business and this, too, has reacted to some
extent on manufacturers, who are glad of this
opportunity to catch up and get their orders
and output nearer together.
The increased cost of labor and the necessity
of carrying on hand a large stock of raw material, purchased at high prices to cover advance
orders, is requiring the use of more working
capital than manufacturers are accustomed to
carry. In some cases this has necessitated
asking for longer credit on purchases of raw
material. In retail lines, however, collections
are reported to be good.
The crop outlook in this district, for the most
part, is satisfactory. Reports from different
parts of New England indicate that most of
the crops are making good progress, especially




hay, grain, and potatoes. Tobacco and a few
other specialties are reported backward for this
time of year, but it is thought that with favorable
weather they will probably produce an average
crop.
The labor situation is the cause of some uneasiness and on the whole is unsatisfactory
from the employer's standpoint. Reports from
all the industrial centers indicate that labor,
both skilled and unskilled, is scarce and in
some places production is being restricted by
inability to secure help. Wages are universally higher than for a long time, if not higher
than ever before.
Money has shown a tendency to strengthen
the last week or two, and rates have advanced
fractionally. Call money, 3§ per cent; commercial paper, 3 | to 4 per cent for six months,
4 to 4J per cent for a year; town notes, fall
•maturities, 3 to 3J per cent, spring maturities,
3J to 3J per cent; 90-day bankers' acceptances,
2\ per cent upward.
Loans and discounts of the Boston clearinghouse banks on June .17, 1916, show an increase of $11,388,000 over the preceding month,
while, demand deposits have increased
$2,773,000 during the same period. The
amount due to banks on June 17 was $135,521,000, as compared with $139,631,000 -on
May 20. The excess reserve of these banks has
decreased from $47,944,000 on May 20 to
$33,769,000 on June 17, as compared with a
maximum excess of $81,597,000 on October 23,
1915.
Exchanges of the Boston clearing house for
the week ending June 17, 1916, were $180,740,253, as compared with $147,636,130 for the corresponding week last year and $210,413,870 for
the week ending April 15,1916.
Building and engineering operations in New
England from January 1, 1916, to June 14,
1916, were $93,249,000, or $15,263,000 over the

JULY 1,

191G.

FEDERAL RESERVE BULLETIN".

same period last year. This is the highest
amount reached for a similar period for over 15
years and is about $5,000,000 over the highest
point previously recorded,
Exports from the port of Boston for May,
1916, amounted to $11,255,012, as compared
with $16,496,726 for April, 1916, and $12,662,120 for May, 1915. Imports for May,
1916, were $19,555,149, a decrease of $4,128,102 from April, 1916, and an increase of
$2,526,258 over May, 1915.
Receipts of the Boston post office for May,
1915, show an increase of $88,000, or about
13J per cent, over May, 1914, and receipts for
the first 15 days of June were $51,000, or 14£
per cent, over the same period last year.
The .Boston .& Maine Railroad reports net
operating income after taxes for April, 1916,
as $1,289,824, compared with $750,802 the
corresponding month last year.
The New York, New Haven & Hartford
Railroad reports net operating income after
taxes for April, 1916, as $1,904,918, compared
with $1,450,293 for April, 1915.
Leather prices continue firm. The boot and
shoe industry is in a most prosperous condition.
New business is not coming in as fast as heretofore, due to the sold-up condition of the
manufacturers, the heavy buying earlier in the
year by retailers, and the fact that it is a midseason period. New samples for next spring
will be ready in about a month.
Wool prices continue high, and the embargoes
placed on exports to this country by' some,
foreign countries have tended to make prices
for domestic wool even higher. The National
Association of Wool Manufacturers in their
quarterly report of June 1 show a slight
increase in the number of idle spindles as compared with March 1. Practically no machinery
is reported as engaged on foreign military
orders. In this business also it is a betweenseason period, but mills are busy on old orders
and are sold ahead for some months.
Cotton mills as a rule are running full time
and many are operating overtime, mainly on
old contracts and to finish goods on contract
dates. The dullness in new orders reported




335

last month still continues, but many mills are
sold up to late in the fall, and consequently
the lack of new buying is causing no uneasiness. Buyers are not interested in making
additional purchases at the present time, and
manufacturers feel that it would be a useless
sacrifice to reduce prices now. Mills are sold
so far ahead that manufacturers think there
will be a revival of buying -before they catch
up with their present orders.
The dry goods business, 'both wholesale and
retail, is better than at this time last year, but
the backward spring and wet weather has
caused sales to be smaller than anticipated.
The bond market is quiet and there is less
demand, due to some extent to the tightening
of money rates.
DISTRICT NO. 2—NEW YORK.
There are reassuring signs of a needed
change to a more conservative outlook in
commerce, industry, and' banking. The unrestrained activity that was so conspicuous for
a time seems to be steadying down to a safer
pace. The money market is much firmer,
commodity prices show a further decline, particularly in the metals group, and commitments in general are made with greater deliberation.
Factor}* orders are booked so far ahead and
are still being received in such volume that
manufacturing is expected to continue for
many months without slackening. Industries
are hampered by a scarcit}^ of skilled and unskilled workers, but the labor situation, except
on the railroads, is more settled than it was a
month ago. Failures are fewer than last year.
Large increases are shown in figures of the
foreign trade, bank clearings, stock exchange
transactions, building, and'new incorporations..
Collections are generally good.
Production of pig iron in Ma}^ was 3,351,073
tons, a new high record. Practically all kinds
of leather are in strong demand. Materials
used in shoe manufacturing have so largely increased in price that some grades of shoes have
been advanced $1 a pair.
Tobacco stocks are reported to be running
low, owing to a poor crop in 1915 and the in-

336

FEDERAL RESERVE BULLETIN.

creased consumption by the armies in Europe.
Sales of cigarettes have grown enormously in
the United States during the past year.
The congestion of freight has been somewhat
relieved by an increase in the space available
for ordinary merchandise on ocean steamers.
Shipping business on the Great Lakes is not so
good as the owners expected, rates being lower
and offerings less in volume than anticipated.
Agriculture is so backward this spring in
many sections that the lateness,of farm work
can only be offset by exceptionally favorable
weather. The pastures are in good condition
for stock raising and dairying.
Net earnings of the railroads for the nine
months ended March 31 last compared with the
corresponding period ended March 31, 1915,
show an increase of $248,800,000.
Imports of precious stones during the same
period increased 200 per cent.
Dividend disbursements in June are reported to be $22,000,000 higher than a year
ago.
Announcements were made of arrangements
to open in South America six new branches of
American banks.
Russia has obtained in New York a threeyear credit of $50,000,000 at an interest rate of
6J per cent. A three-year 5 per cent loan of
$5,000,000 was negotiated here by the Newfoundland Government. The London Joint
Stock Banks are reported to have renewed for
one year their $50,000,000 credit in New York
at 5 per cent interest.
The statement of the New York Clearing
House Association, dated June 17, 1916, shows
loans, etc., $3,311,344,000, deposits $3,448,731,000, and excess reserves $93,681,000. Since
May 6 last these figures have decreased as follows: Loans, etc., $28,440,000, deposits $49,993,000, and excess reserves $2,221,000. The
low point of excess reserves on June 3 last was
$55,850,000.
Figures of the foreign trade of the port of
New York for the four weeks ended June 17,
1916, compared with the same period last year
are the following: Exports $243,816,993, an increase of $147,160,965; imports $109,635,775,
an increase of $39,177,704.




JULY 1,1916.

Postal receipts in New York in May were
$2,815,351, an increase of $348,451 over May,
1915.
Rates of exchange on the leading countries
have been fairly steady since May 1. Sterling
bills have declined about one-half of 1 per cent,
notwithstanding the receipt of $65,075,000 gold
from Ottawa.
The money market displayed a firmer tendency in May and marked increases in rates
occurred early in June. An advance of about
1 per cent is shown in call and time money,
bankers acceptances are up one-fourth to onehalf of 1 per cent, and commercial paper is sold
to yield one-half to 1 per cent more.
DISTRICT NO. 3—PHILADELPHIA.

Buying power which has developed throughout the country tends to keep general business
on a strong basis. Reports from the various
departments of trade and industry are almost
uniformly favorable, and indications point
to continued active conditions. The cold and
unfavorable weather has restricted retail trade
to some extent, and has retarded the movement of summer merchandise, but this situation is regarded as only temporary.
The labor situation, as referred to by us last
month, still appears to be unchanged. Labor
is restless and its continual shifting is lowering
the efficiency of many plants, thus entailing
loss to manufacturers. There is a noticeable
scarcity of female help available for mill
work.
While some of the munition plants are only
now commencing to make deliveries, others
are anticipating the end of the European war,
and are making plans to manufacture commodities for use in time of peace. This is adding
to the growing feeling that the end of the war
will not have the disastrous effect upon our
industries which some business interests have
feared.
Activity is shown in automobiles and accessories, and several large plants are in course
of construction to manufacture motor cars and'
trucks.
Cement companies report that there is little
demand for cement for new buildings, con-

JULY 1,1916.

FEDERAL RESERVE BULLETIN".

structive work in this particular line being
necessary repairs by railroads and additions to
plants of munition factories.
Chemicals are active and prices easier.
Drugs are in fair demand; prices have declined
somewhat. Dyestuffs are unsettled, with fluctuating prices. Paints are in demand at good
prices, and glass has been purchased in good
quantities.
The coal mines are working at about 75 per
cent capacity. The business is fair and prices
are improving.
Cotton and cotton goods.—The market is
seasonably quiet. Most manufacturers are
not quite so anxious to contract for yarns for
late delivery at prevailing high prices. Spinners are sold well ahead. Buyers feel that they
can afford to wait, expecting that prices will
not be any higher when it is necessary for them
to come to the market for actual needs. Because of the heavy consumption of yarns and
the sold-up condition of the spinners, which in
many instances runs into next year, high prices
are likely to be maintained.
Agriculture is very backward on account of
the heavy rains. The corn crop will be short.
The continued wet weather has caused great
numbers of tobacco plants in the seed beds to
rot. A scarcity of plants is threatened, and
the outlook now is that the tobacco acreage
will be much short of the average. The crop
is nearly a month late now in being planted,
and under the most favorable conditions the
crop will not be matured until the middle or
latter part of September, when frost may be
expected.
Dry goods, notions, millinery, etc.—Wholesalers and jobbers report a well-maintained
demand. Sales of millinery appear to be in
excess of expectations and much confidence in
the future among manufacturers of men's and
women's wearing apparel has been created by
the liberal amount of fall orders that are already
being placed.
There is no material change in iron and steel.
Domestic inquiries are less numerous, but the
foreign demand shows activity. Producers
are well sold up and furnaces and plants are
46718—16—5




337

booked from six to eight months ahead, irrespective of new contracts. Pig iron is rather
quiet. Improvements are being made to
many plants, but the usual summer shutdown
for repairs is not expected to occur. Shipbuilding companies continue to be large purchasers. Prices remain firm and the general
situation is one of strength.
Leather and shoes.—The general market on
heavy leathers continues fairly active. Buyers
are either well covered ahead or are holding off
purchases. The local market rules strong in all
directions. The demand for goat leathers of
all finishes is unabated. AH houses are sold
ahead, and customers, far and near, are urging
deliveries. Tanners and dealers have more
orders than they can fill. There is quite a
revival in the demand for patent kid.
There is a tendency toward lower values in
builders' lumber. Building operations have
been active.
Silk trading has revived. Fall silks are selling in good volume, and prices are holding up.
Since it is apparent that the world's stock of
silk is no more than the supply of last year, the
whole tendency is toward firm prices for silk
fabrics.
Textiles.—Higher prices and marked scarcity
x)f desirable merchandise to meet the unprecedented retail demand continue to be the outstanding phases of the hosiery and underwear
industries. Production is being seriously hampered by inability of many mills to get adequate help.
Wool and woolen goods.—Wools have held
firmly, with a fair inquiry reported. Dealers
say that they are not able to shade prices and
then go out and replace their wools at similar
prices. It is asserted by those in touch with
the trade that there is every reason to expect
continued high prices.
Rates on all classes of loans have been slightly
advanced within the last few weeks by local
banks from one-quarter to one-half per cent,
with particular reference to demand loans and
the longer maturities. Most of the banks report an increased volume of business with an
encouraging outlook for the future.

388

FEDERAL BESEEVE BULLETIN.

The deposits of our savings banks have increased considerably during the last year.
The following table shows the deposits of the
four leading savings institutions in Philadelphia:
March 30, 1916
April 5, 1915
February 20, 1914
May 1, 1913

,

$192, 880, 000
182,870,000
178,410,000
171, 380, 000

, 1916.

the buyers. Some of our manufacturers have
been flooded with trade inquiries, and exports
generally have increased very much within the
last year. The outbreak of the European war
seriously affected financial conditions in every
South American country, and for a time it was
very difficult, if not impossible, for South
American merchants to finance their purchases
in the United States, whereas during the last
year they have been able to adjust themselves
to the changed financial conditions and to handle their United States payments without any
particular difficulty.
Our exporting firms are closely studying
trade conditions in these southern countries,
and many firms, realizing that the trade will
not come to them unless they go after it, are
now being represented by direct agents showing samples to the trade and soliciting business
in much the same way as our traveling men do
in this country. This method has brought
results.
The high ocean freight rates prevailing at
present, with the advance in wages to labor
and in the prices of raw materials in this country, have combined to make our selling prices
so high in some cases that sales have been restricted. These advances are difficult for the
foreigner to understand.
One large exporting firm reports that they
believe that after the European war is over
competition will be keener than ever in the
South American markets, and they propose to
meet this competition "by cementing the relationship between the buyers and ourselves, by
fair treatment, fair prices, and catering to the
customs and wants of the various countries,,
meeting wherever possible their methods of
doing business, their methods of carrying their
accounts, and also by corresponding with them
in the language of their country and by illustrating our materials in the language of the
country also.77.

Within the past few weeks there has been a
considerable reduction in ocean freight and
steamship charter rates. It is somewhat difficult to reconcile this statement with the fact
that the volume and value of exports are being
maintained at unprecedented figures, but the
action of the British Government in placing
embargoes on the importation of certain commodities has increased the tonnage available
for other cargoes. Until a short time ago, 50
per cent of the cargo carrying space of every
ship under the control of Great Britain had
to be reserved for wheat and flour up to within
two weeks of sailing; after that time, sufficient
of any other acceptable goods could be loaded
in order to make a full cargo. The British
Government has recently reduced this requirement to 33 per cent of the cargo carrying space
and has also reduced the freight rate on wheat
from 18d. to 13d. per bushel, indicating that.the
store of wheat in Great Britain is now considered to be sufficient. The available supply of
tonnage has, therefore, been increased, causing
a corresponding reduction in freight rates.
However, rates to ports other than those in
Great Britain are being well maintained, as
are charter rates for long sailings, only the short
contracts being materially affected. The outlook is considered uncertain.
From special reports received from a number
of concerns regarding business conditions in
Central and South American countries, and the
possibilities of extending our export trade
there, is obtained the information that at present market conditions are very favorable for
the United States, and if the expansion of our
trade is pushed in logical and practical ways DISTRICT NO. 4—CLEVELAND.
it is likely that our merchandise can be exported
The market situation in the steel business
in larger amounts than ever before to those has changed very little since last month.
countries and permanent customers made of There has been some falling off in placing new




JULY 1,1916.

business, but this is not due to the fact that
business is not obtainable if the mills were in
position to take care of it. Neither producers
nor consumers are anxious to consider new
business at this time, the latter having covered
their needs for months ahead, while the former
have their books filled with orders for delivery
running well into 1917. The reaction in price
applies mainly, if not exclusively, to a few
specialties for which there was an urgent demand early in the spring and on which a
premium was paid for prompt delivery. There
seems to be absolute confidence on the part of
the steel trade in the future, and so much tonnage is in sight that there should be no proper
excuse for any weakness.
Iron ore is coming forward to lower lake
ports in much larger quantities than any previous year, and in all probabilities the ore
movement will exceed the maximum year of
1913 by several million tons.
Oil country material is in unprecedented
demand at advanced prices. Sellers of pig
iron are asking prices somewhat higher than
those previously prevailing. Rather sharp
reductions in ocean freight rates have stimulated demand for iron for export.
The coal business was retarded during the
first part of June by miners refusing to accept
settlement of United Mine Workers and representatives of the operators in part of this district. Prices are good and plenty of business
in sight. Principal drawback is shortage of
labor, which condition some operators think
will induce mechanical and inventive skill to
produce machines to perform work now requiring many men. Coal business in the southern
part of this district is very good. Shipments
up the lake in maximum quantities, except
from districts affected by above-mentioned
strike, which is now settled.
The market for coke is unchanged practically
both in respect to production and prices.
Plate and window glass business continues
satisfactory, except some window-glass factories operating without machinery have closed
for the summer. Pottery situation is good.




339

FEDERAL RESERVE BULLETIN.

Automobile and rubber factories output is
enormous. Registration for auto and truck
licenses exceeds by thousands figures of last
year.
Advance orders for fall goods in the garment
manufacturing industry indicate better than a
normal business. Difficulties on account of
dyes are disappearing. Labor troubles in the
East in this trade have tended to increase business here. The demand for the higher grade
goods continues.
Freight traffic on the railroads is not so congested as last month. The shortage of passenger cars to take care of summer and winter
travel is very evident. Mercantile business is
quite active, the only complaint being over the
slowness of deliveries from Eastern mills.
Practically all our correspondents report
collections satisfactory. A number of smaller
customers are beginning to feel the strain on
their capital caused by being required to pay
largely increased prices for raw materials. As
they receive returns on their various contracts
this condition should adjust itself.
There were 98 failures in the district during May, with total liabilities of $736,195, as
compared with 90 failures for April, with total
liabilities of $1,145,629.
Weather conditions have been detrimental
to growing crops and farmers have been greatly
delayed on account of heavy rains. Tobacco
and hemp will both be good crops this year and
offset any damage to wheat and corn.
Rates for money appear to be hardening and
note brokers offerings in this district are at rates
about 1 per cent over 60 days ago.
Deposits in savings banks are growing at a
record-breaking rate in all industrial centers.
Clearing house figures are given below:

Cincinnati
Cleveland
Columbus
Pittsburgh
Youngstown
Total

June 1-15,
1915.

June 1-15,
1916.

$54,143,600
62,742,680
14,563,800
107,207,565
3,551,620

$76,233,150 $22,089,550
92,611,112 29,868,432
21,706,900 7,143,100
140,746,827 33,539,262
5,395,688 1,844,068

40.79
47.60
49.04
31.28
61.92

242,209,265

336,693,677 94,484,412

39.00

Increase.

Per cent
increase.

340

FEDERAL EESEEVE BULLETIN.

JULY 1,1916.

Post Office receipts in the six largest cities making ample preparation for the present season, with a view to securing as full an output as
in the district are as follows:
possible, but crop supplies are rather below than
Per
cent
above normal. Nineteen fifteen stock is all
May,
1916.
May, 1915.
Increase.
increase.
disposed of and orders for new goods are being
$234,089
Cincinnati
$256,355
$22,266
9.51 booked at 10 to 25 per cent above last year,
276,350
Cleveland
319,821
43,471
15.73
85,160
CQlumbus
90,706
5,546
6.51 with a tendency toward advancing prices.
284,235
Pittsburgh
364,387
80,152
28.19
82,435
Toledo
97,085
14,650
17.76
Prices of agricultural implements and seeds
21,294
Youngstown
25,145
3,851
18.08
are
higher than usual, but this does not seem to
Total
169,936
17.27
983,563 1,153,499
affect the demand, which is good. Good farm
Number of building permits and total valua- lands in the Carolinas are still selling at $25 to
tions for May, in the six important cities in this $50 an acre, but there seems to be a gradual
district, were practically the same as in April. upward tendency and the demand increasing.
Trade in automobiles is making a record
Valuations show an increase of approximately
Deliveries are reported slow, owing to the
30 per cent over the month of May, 1915.
large demand, and there is some criticism of
DISTRICT NO. 5—RICHMOND.
too large a volume of credit sales.
General business in this district is active.
Building as a rule is reported about normal,
There has been a steady improvement and con- with an improving tendency. In the Caroditions as a rule are up to or above normal, with linas there is considerable activity.
prospects good. There seems to be a general
Coal movements by the railroads have been
feeling of conservative optimism and a rea- record breaking, and the ports report great
sonable expectation of continued good business activity.
and prosperous conditions.
A dry May prevented good stands of cotton
Cold weather during the spring months, a and necessitated some replanting, and heavy
dry May, with heavy precipitations in June, rains in June have handicapped farmers in the
leaves the rainfall slightly below normal, but ex- cultivation of the crop and controlling of weeds.
treme variations have been a handicap to work There has been an increased late demand for
and results. The rainfall recently has been ex- fertilizers.
cessive and reports indicate uneven conditions.
Cotton mills are running on full time and
Market gardening along the seaboard in this many of them running at night. They are
district is more successful than for several years well supplied with orders, some booked three
past. The yield of potatoes is estimated at or four months ahead, while others are sold up
about 60 per cent, but they are selling for $4 to to the end of the year. This is about as far
$5 a barrel. The prices of berries, melons, ahead as they care to go, owing to the difficulty
peaches, beans, and cabbage have been satis- of securing dyestuffs. A leading selling agency
factory. Shipments of cabbage are reported which distributes goods throughout the United
heavy. One section reports an active cam- States as well as foreign countries reports that
paign for the planting of forage crops, soy beans, the export demand is more active than the
cowpeas, velvet beans, etc. In this connec- first of the year. Collections are very satistion the North Carolina Extension Service is factory, alike from agricultural, mining, and
taking up through demonstration agents the manufacturing districts. There are very few
erection of silos, planning and aiding in their requests for delayed shipments, whereas nuerection wherever farmers can be induced to merous letters ask for the forwarding of goods
ahead of shipment dates fixed at the time of
build them.
In the valley of Virginia general crop condi- placing orders.
tions are reported very satisfactory and an
Very few farmers who prepared a deep seed
abundant harvest is predicted. Canners are bed for their corn have suffered during the




JULY 1,. 1916.

FEDERAL EESERVE BULLETIN.

variable and unfavorable season. Their fields
are clean and the crops show a vigorous growth.
Other growers who seem to have disregarded
the importance of preparation before planting
are encountering weeds and grass and are
unable to remove them on account of the heavy
rains.
Oats are reported poor; particularly early
plantings. Later-maturing plantings have
been developed by the first rains in June and
may afford a better yield. Conditions as to
hay and alfalfa are very uneven, and on the
whole do not promise well.
The furniture trade is active at advancing
prices, but large dealers have pretty well supplied needs and are indicating caution as to further purchases at present high prices. Conditions and collections are good, and further investments are indicated in new enterprises or
enlargements of present plants.
The Carolinas report considerable activity in
industrial improvements, the construction of
electric-light and water improvements, drainage, paving in a number of towns (one town
reporting the contemplated expenditure of
$500,000), cold-storage and gas plants, and several fertilizer and ice plants. One new small
roller mill is reported, to use home-grown and
western wheat. One point reports a colonization land scheme for the purpose of locating
families from out of the district, and another
point reports the incorporation of a seed farm.
There is considerable interest being taken in
creamery products. One plant started with a
supply of milk from about 200 cows, and is said
now to be taking the supply of about 2,000
cows. They contemplate adding an ice plant
this summer and also the handling of poultry
and eggs.
Business in hardware and machinery is reported 30 per cent better than last year, but
the high cost of materials has interfered with
deliveries.
Labor is fully employed at good wages and
the demand is in excess of the supply. No
labor troubles are reported in the district.
Tanneries and extract plants are operating at
full capacity, more peeled bark being handled




341

at this time than ever before in the history of
the industry. Shoe trade is active, but prices
are high and buying is reported as cautious.
Natural and seeded pastures throughout the
States are in excellent condition. Live stock,
cattle, hogs, sheep, and colts are growing and
developing in proportion to the grass afforded
them. Prices are high, and an increase in hogs
is particularly reported from almost every section. Dealers in horses and mules report good
business, money more plentiful than last year,
and prospects good.
There is some complaint about difficulty in
shipping facilities; business not quite so active
as during the first four months of this year, and
somewhat easier prices indicated.
Money is reported in better supply throughout the district than usual, but with some indications of an improved demand. Bank deposits are above normal.
Reports as to the tobacco crop show uneven
conditions, some sections reporting the crop as
short, while others indicate a much better
situation.
DISTRICT NO. 6—ATLANTA.

The general outlook in the Atlanta district
continues bright. Money is plentiful and rates
normal with light demand. The impression is
that with the cessation of war money will flow
more freely along trade channels, and this section
anticipates new and diversified industries.
Cotton conditions are reported as favorable,
but the fields are in need of sunshine and warm
weather. Especially is this true in the northern
section of the cotton belt. The corn crop is the
best in several years. Crops will be made at
a less cost than average this year, and with good
prices the farmers should be in a prosperous
condition. No unusual advances have been
made on growing crops, and unless rains continue and the cultivation of crops necessitate a
great deal of additional labor no demand for
additional money is anticipated.
New business has somewhat receded, but
manufacturing and general industrial lines continue to operate full time with plenty of orders
ahead. Labor in general is satisfactory and
well employed.

342

FEDERAL RESERVE BULLETIN'.

The boll weevil has made its appearance in
the cotton fields in some sections of the district
in spite of efforts to combat it. Owing to
recent rains, adverse conditions of cultivation
are reported from some sections. The weather
of late has been too cool, especially in the
northern section of the cotton belt, but with
improvement in this the prospects are good for
an average crop,
There has been a large increase in corn
planting, and conditions have been very favorable. The crop is in fine shape, and present
indications point to the largest and best crop
for many years.
Notwithstanding an increase of acreage in
wheat and oats, the wheat crop shows 25 per
cent decrease. Oats are reported poor. The
hay crop is exceedingly good and a large crop
has been produced, with prices high.
Fruit is light in Tennessee and Alabama.
In Georgia it is lighter than 1915, but prices
are better and expectations are that good
prices will prevail, owing to shortage of crop.
The average increase in price is 10 cents per
crate over last year, which means a good sum
in the growers7 pockets. Owing to rains the
marketing is somewhat late, but shipments are
now beginning to move. Watermelons are
beginning to move to market. Recent rains
were very timely and the crop will be a good
one, with heavy acreage and prospects for good
prices throughout the next few weeks at least.
Cantaloupes are being shipped in large quantities, with excellent prices prevailing. The
Florida citrus fruit crop is short, and the output is estimated from 60 to 70 per cent.
Tobacco crop reports have been encouraging,
the weather being favorable for transplanting.
A fine crop has been put in and the general
condition is good. There is a strong demand
for export of previous years7 holdings, but
owing to lack of shipping facilities it is moving
slowly.
New Orleans reports the rice market as quiet,
with well-maintained prices, notwithstanding
indications that the present crop will be a
large one. Rains have been general in the
sugar belt and planters are optimistic, in view




JULY 1, 1916.

of large yield and good prices. Interest in the
coffee market appears especially strong, and
New Orleans reports deliveries in New Orleans
in excess of the port of New York.
Conditions in lumber have softened somewhat. Mills have large stocks on hand, and
the market is suffering from overproduction,
caused by car shortage and scarcity of vessels.
Some mills have shut down, while others do
not believe present conditions will last long
and are building larger mills, with a view to
expansion in the fall. The Edward Hines
Lumber Co. of Chicago has completed arrangements for the erection of a mammoth
sawmill at Gulfport, Miss., to cost approximately $800,000. The mill will cut for export,
and it is reported contracts have been signed
for timber to run the mill 20 years. Hardwood
manufacturers are reported to have more orders
than they can fill. A few railroads are buying
pine crossties, and export demand is good
but ocean transportation lacking.
Prices of naval stores show little improvement, although exports to Russia, Cuba, and
Great Britain are in demand, with the interior
demand fair. The new crop is beginning to be
worked with prospect of slight increase over
previous year's production. Consensus of
opinion is that about September 1 rosin and
turpentine will both show considerable improvement in prices.
The coal market is showing some improvement both in demand and prices, but the industry is hardly in a healthy condition. The usual
spring contracts have been considerably off
and a short, crowded season is looked for in the
early fall.
The market for pig iron is slack with large
production continuing, but with steel orders
placed for months ahead the industry may be
said to be thriving.
Strong interest continues to be shown in live
stock throughout the district, especially beef
cattle. The present market is reported dull.
High prices of structural steel, brick, etc.,
has retarded general building. Shipbuilding
is reported particularly active at port cities.
A large amount of good roads work is being

JULY 1,

1916.

FEDERAL RESERVE BULLETIN.

done and a vast amount of money expended
for these improvements throughout the
district.
Foreign trade is hampered by continued lack
of shipping facilities and high rates, although
reduction in cotton rates has quickened shipment somewhat in this line.
There are many new enterprises, but most
of them are of small size.
There is a general feeling that the present
high prices will find a lower level after the war.
The wholesale trade improves slowly and indications are that little gain will be shown for
some time, at least not until after another crop
has been gathered. Retail business is fair,
though the volume is not increasing, due mostly
to increased prices in almost every line.
Collections are reported fair. Bank clearings show an increase of over 25 per cent
throughout the district. Money in slightly
better demand, with little change in rates.
Express and postal- receipts show large increases. Railroad receipts continue to improve. The Southern Railway reports a gross
revenue increase of 18.58 per cent for year
ending April 30, 1916, as compared with same
period ending April 30, 1915.
DISTRICT NO. 7—CHICAGO.

There has been no perceptible decrease in
business activity since the last report. The
banks in the larger centers still have excess
funds, but a demand is gradually developing
which has to some extent firmed up rates, and
there is evidence that a stronger money market
may put in an appearance. In some of the
country communities there is borrowing for
the purchase of automobiles, while in other
sections, particularly through Iowa, excellent
pasturage is accounting for borrowing by the
farmers, who are purchasing cattle to feed.
Banking centers in the State of Iowa comment
upon this latter situation, but on the whole
the supply of money is in excess of the demand.
Local bond houses are of the opinion that
the investing public still is in position to absorb
a large volume of securities, and sales are
reported in excess of last yeai\ There is a




343

little hesitancy at this time, and some money
has undoubtedly been attracted into the new
promotions, thereby curtailing bond sales.
During the past year some of the large banks
were buyers of bonds, and it is stated have
started to sell, taking their profit; also, that
the securities have been rapidly absorbed by
other interests.
Labor is well employed at substantial wages,
and a number of strikes have been settled or
avoided through granting the demands of the
employees. Some of the labor disturbances
are still unsettled. The increased cost of
production has, in a number of instances, been
added to the selling price, and this is to some
extent tending to cut down sales. Collections
in parts of Iowa are still unsatisfactory, but
in general appear to be a little better than
normal.
During the past month the weather has been
cold and wet, delaying the planting of corn
and some vegetables. Throughout this district the pasturage is reported as excellent,
with good prospects for a heavy hay crop.
Corn, while delayed and damaged by the present conditions, will probably furnish a satisfactory crop if it receives the benefit of warm
growing weather in the near future. In Illinois
the prospects for wheat are none too good, but
oats should be in good supply and corn satisfactory. The fruit crop, with the exception
of peaches, is favorably commented upon.
Indiana has practically finished its corn planting, its oats and grass have favorable prospects, but wheat in this section appears to be
considerably below normal. In Iowa some
replanting of corn has been necessary, as has
been found advisable in other States also. In
general, the agricultural prospects are good,
and a substantial crop of oats and hay is anticipated, with an acceptable quantity of corn
and wheat. Fruit is said to be in good condition. Michigan gives promise of a large
fruit yield, and the general crop prospect is
satisfactory considering the weather conditions that have existed during the past few
weeks. A considerable acreage of potatoes
and beans is reported, and there is still some corn

344

FEDERAL 'RESERVE BULLETIN.

to go into the ground. Wisconsin lias excellent pastures and a satisfactory outlook for
oats and hay. Corn is weedy in sections, and
some damage has been done to the potato
crop. Replanting is difficult on account of
the wet ground.
Agricultural implements.—Reports from this
line of industry give evidence of some decrease
in sales, owing to the advanced cost of materials
and the reported damage to the crop. With
good weather conditions, a reasonable volume
of business is still anticipated. Some manufacturers comment upon the difficulty of procuring raw materials, and a higher wage scale
has been forced upon a number of companies
by the restlessness of labor.
Automobiles.—This line is still very active,
collections are good, and the demand seems to
be in excess of the productive capacity of the
factories. This is a prosperous period for the
industry, and no one seems willing to venture
an opinion as to its duration.
Building and building materials.—Apartments, dwellings, and manufacturing plants
are being constructed in Chicago, and there is
some indication that structural steel is not
quite as firm as heretofore, owing to the competition of reinforced concrete construction.
The building of apartments seems to have
been overdone, as one authority advises us
that there are about 18,000 vacant apartments
in this city. Brick companies report a greatly
increased business over the corresponding
month last year, with good promise for the
future. Cement is not benefiting by present
conditions, and considerable difficulty is reported in securing men to handle concrete
work. Shipments are in smaller volume than
expected, and there is evidence of hesitation
in connection with building operations, due
to the relatively high prices of materials and
the scarcity of labor. Activity in local real
estate has increased, and similar conditions are
reported from several of the manufacturing
centers in this district.
Coal.—The movement of tonnage is said
to be at low ebb, and the mines are reported
as working only part time. This industry has




JULY 1,

1916.

been engaged in a controversy with the railroads and this has somewhat retarded the
current movement of tonnage. Credits are
receiving closer supervision. There are some
indications that there will shortly be renewed
activity in this line.
Distilling and brewing.—Regular distilling
business is rather quiet, with a decrease in
special war orders. Breweries are experiencing some activity, although the annual volume
will not be as great as anticipated unless warm
weather soon develops.
Dry goods.—In manufacturing centers a large
distribution of merchandise is evidenced and
sales are reported by wholesalers as considerably in excess of last year. Some retailers are
reordering, but there also appears to be speculative buying based upon an anticipated shortage of goods. Several authorities advise caution in this connection. Letters from wholesalers and retailers throughout this district indicate a satisfactory volume of business in spite
of the high prices, but a slight falling off in
sales to farming communities. This, however,
is not considered unfavorable as there is prospect for a brisk fall trade. The situation as
regards certain materials and dyestuffs is still
causing uneasiness owing to the values placed
upon this class of goods and the possibility of a
sudden break, should the foreign situation clear.
Furniture is said to have enjoyed a satisfactory spring business, and the trade is understood to be preparing to advance prices to an
average of 15 per cent to cover the increased
cost of manufacture. There is a seasonal lull
in this industry.
Grain markets.—Conditions in the wheat
market have changed considerably since last
month with the improvement from the earlier
estimates of the winter wheat prospects. Corn
has held steady and the oat prospect is good.
It is understood that there is a probability of
material reduction in the coming Canadian
crop, and this may benefit the United States
wheats, both old and new crops.
The general conditions in groceries are satisfactory, although in some sections a falling
off in trade is in evidence which is to some ex-

JULY 2,1916.

FEDERAL RESERVE BULLETIN.

tent accounted for by the abnormal price of
grocery staples. Collections seem to be normal
or better and distributors are hopeful that the
successful issue of this year's crops will prove
of material benefit.
Movement in canned
goods is said to have been slightly retarded in
certain sections, and weather conditions have
not been favorable to the business in rural
districts.
Buyers of hardware are more cautious but
the demand for merchandise is still strong and
raw materials are held at high prices. Collections are generally satisfactory, and a substantial demand for goods is reported.
Leather.—There are some indications that
values in this industry will work lower, but
up to date they have been well maintained.
Retail merchants report brisk business but it is
expected that the next few weeks will see
somewhat quieter conditions. This is said to
be seasonal, and a resumption in the demand
for merchandise is looked forward to by the
latter part of July, should crop prospects be
favorable. Shoe manufacturers are working
up the stock on hand, and collections appear
satisfactory. In the belting line difficulty is
experienced in securing some of the necessary
raw materials.
Live stock and packing.—The domestic demand for packing-house products has strengthened during the past month, and the foreign
demand decreased, the latter by reason of
restrictions due to congestion on the Continent.
Prices maintain a strong tone and live-stock
shipments are reported as coming to market
in excellent condition and realizing substantial
prices. Collections are said to be good and
the outlook satisfactory. By-products are still
at comparatively high values, and the present
tone to this trade is expected to continue for
some time.
The demand for lumber has not changed
materially since last month, but retail dealers
in the country are now reported as confining
their -purchases to their immediate needs.
Shipments to the manufacturing trade are said
to be below normal, with prices firm, and a




345

reasonably satisfactory volume of business
maintained. Collections are improving to some
extent, but extra time is said to be required in
certain sections.
May is said to have shown a gain in mailorder sales all through this district, with a
tendency on the part of the consumers to
restrict their purchases of building material,
wire fencing, and metal products. Textiles,
leather, and wooden articles seem to be taken
in good volume, and general business in this
line is reported as brisk.
The demand for pianos is not quite as active
as last month, which is explained as seasonable
and likely to continue during the months of
June, July, and August. Production costs
have been considerably increased through advances in material and labor, but manufacturers are optimistic as to the outlook, and
dealers appear to be in better condition to
meet their engagements than for some time
past. Collections on the whole are said to be
satisfactory, and general music houses are
satisfied with the results of the past year and
the present outlook.
Steel.—The volume of new business during
the past few weeks is reported as somewhat less
than has previously been recorded, but the
activity is considerably above normal and
prices are firm. There is evidence that the
premium asked for prompt shipment is not as
high as it has been, but some of the companies
have not yet opened their books for 1917.
Collections are reported good and prospects
encouraging.
Watch factories are experiencing a slight
decrease from the heavy business of last month,
which was caused by a rush of buying on the
part of dealers. However, a good business is
looked forward to during the remainder of the
year. Local jewelry stores claim an increased
volume over the corresponding period a year
ago, with good collections. Manufacturing
conditions are not entirely satisfactory, owing
to labor disturbances and a shortage of some of
the necessary goods. Imports are practically
at a standstill with the exception of precious
stones.

346

FEDERAL RESERVE BULLETIN.

The movement of wools is said to be improving. Values are well maintained in spite of a
quiet market and there is a prospect that the
manufacturers will have to increase the prices
of their finished articles correspondingly this
fall. Manufacturers of knit goods are active
on orders for summer and fall delivery, and
they are experiencing some difficulty in procuring aniline dyes, although there is some
increase in the supply of black dyes. The speculative buying by merchants who anticipate a
shortage in woolen goods is being carefully
watched, particularly from the credit standpoint.
Clearings in Chicago for the first 20 days of
June were $1,085,000,000, being $220,000,000
more than the corresponding 20 days of June,
1915, and $112,000,000 less than the first 20
days in May, 1916. Clearings reported by
21 cities in the district outside of Chicago
amounted to $214,000,000 for the first 15
days of June, 1916, as compared with
$160,000,000 for the first 15 days of June,
1915. Deposits in the eight central reserve
city member banks in Chicago were
$629,000,000 at close of business June 20,
1916, and loans were $444,000,000. Deposits
show an increase during the past month, and
loans a slight decrease.
DISTRICT NO. 8—ST. LOUIS.
General business conditions during the last 30
days have more than held their own, even compared with the rapid advances made in the last
six months. The usual summer lull is evident
in some lines, but shipments show an advance
as compared to the same period in the last few
years. It should be remembered that business
in this district began to show signs of improvement something over 15 months ago, and comparisons of this year with 1915 show a real
improvement and not an artificial improvement due to a comparison with a period of
general depression incidental to the outbreak
of the European war. Conditions are believed
to be fundamentally sound.
The dry goods interests in the district show
an increase in business for May and the first
half of June as compared to a year ago, and




JULY 1,

1916.

indications are that their orders for future
delivery are considerably larger than last year,
and in some cases have broken the record for
advance orders. The dry goods interests further report that stock in the hands of retail
merchants are probably smaller than they
were 30 or 60 days ago, thus evidencing immediate consumption of merchandise and a lack
of speculative buying. The same conditions
seem to rule among the boot and shoe manufacturers. One large house which makes a
practice of publishing its sales reports an
increase in shipments of over two million dollars for May, 1916, as compared to May, 1915,
and a gain of over five million dollars in shipments for the six months ending May 31, 1916,
compared to a similar period a year ago.
Hardware and allied industries report similar
gains. In a few cases where prices have become prohibitive the demand has slackened,
but in general the increased cost has not had
any apparent influence on sales. There seems
to be no speculative buying. The situation in
the paper trades seems to be somewhat different. Prices perhaps increased more rapidly
than in the general merchandise lines and apparently the paper trade has undergone a
period of readjustment and is now on a more
normal basis. Practically all wholesalers of
general merchandise report their collections to
be in good condition and that they follow the
trend of sales closely. The drug and chemical
market shows a slight recession in prices as
compared to 30 days ago and the same may
be said of certain ores and minerals.
St. Louis postal receipts show an increase
every month this year as compared to the same
months of 1915, the increase running about
10 per cent monthly.
The earnings of the railroads operating within
this district continue to show the increase
noted in the last report. The figures for April
are the last official figures available at this
writing, and they show an increase in both
gross and net earnings for every road operating
here. It is especially noticeable that the per
cent of increase in the net earnings is larger
than the per cent of increase in the gross earnings. An increase in the number of idle cars is

again unofficially reported although there
seems to be no decrease in the tonnage moved.
This doubtless indicates quicker unloading at
terminal points.
Labor conditions in this district have not
been as much upset as in other parts of the
country and, generally speaking, are believed
to be satisfactory.
On June 1 a number of letters were sent out
to farmers in this district asking them to report
on the condition of crops in their neighborhood,
and below is a summary of answers received.
These answers came from every section of the
district.
Good.
Wheat
Corn
Cotton
Tobacco
Oats
Barley
Hay
Rye
Alfalfa
Potatoes...
Apples
Peaches
Small fruits
Vegetables.

Fair.

3
57
19
21
28
2
48
10
26
45
15
21
52
73

Poor.

34
28
19
4
32
10
35
23
13
23
27
20
19
11

In taking the district as a whole these reports
indicate sound agricultural conditions and satisfactory crops with but few exceptions.
Reports on the wheat crop are the least encouraging. In considering the report on the oats
crop it may be noted that the adverse comment
comes almost entirely from the Southern States
in this district, while the great oats-producing
States, that is, Missouri, Illinois, and Indiana
report a favorable outlook.
Below is given a report on the condition of
wheat on June 1 and for the 10-year average,
also the change in condition as compared with
the May 1 report of 1916:
June 1,
1916.

Illinois
Indiana
Kentucky
Missouri
Tennessee




347

FEDERAL RESERVE BULLETIH.

JULY 1,1916.

72
58

Per cent.
78
79
84
79

80

87

Per cent.
53
60

. .

Change in
June 1,10- condition
year aver- from May
1, 1916.
age.

- 9
- 5
-15

— 12
g

It will be seen that the condition June 1
shows a loss for every State reported in the
district, and it seems probable that this, combined with the large abandoned acreage noted
in the June 1 report to the Bulletin, will
result in a considerably reduced harvest. The
figures given indicate a yield in the States
reported of only about 61 per cent of the
10-year average and only about 47 per cent
of the final estimate for 1915. It should be
remembered, however, that a large amount
of the 1915 wheat crop is still in the hands of
farmers or held at primary points. The first
car of 1916 wheat was received in St. Louis
on June 14. The harvest has begun in the
extreme southern portions of the district, where
the grain was reported as fully matured but
the yield per acre light. The crop as far north
as St. Louis is now beginning to ripen and
warm sunny weather would be of benefit.
From all reports it appears^that the prospects
for the corn crop in practically every section
of the district is excellent. The stand is
reported to be good. The crop has received
its second cultivation in the southern parts
of the district and has received its first cultivation in ail except the most northern sections.
Damage due to continued and excessive rain
is reported from a few localities, and in general
it may be said that less moisture and more
sunshine would be of benefit.
The table here given shows the condition
of oats on June 1, 1916, giving the percentage
of acreage this year compared to 1915 and
the percentage of condition June 1, 1916,
compared to the June 1 ten-year average.
ConditionPercentage
of 1916 acre1,
age to 1915. June 1,1916. June
10-year
average.
Illinois..
Indiana.
Missouri

103
110
103

85
84
78

This report indicates an increase in acreage
compared to 1915. The condition in these
three States is also reported to be better than

348

FEDERAL RESERVE BULLETIN.

the 10-year average for the same date. The
condition of oats in the southern States of the
district is not entirely satisfactory., particularly those parts of Kentucky, of Mississippi,
and of Tennessee included in this district.
However, these sections report excellent prospects for cotton, corn, and tobacco. Undue
significance should not be attached to these
adverse comments from these sections, as the
oats crop is not of prime importance, while
tobacco and cotton are.
A report on the rice crop from one of the
rice producers of Arkansas reads as follows:
" Prospects were never better at this time of
the year." Another letter from an adjoining
county states that "it has an increase of
about 10,000 acres in the rice this year and a
very good yield is expected."
The figures on the cotton crop taken from
the Government report as of May 25 indicate a better condition of the crop on May
25, 1916, compared to May 25, 1915, for
every cotton-producing State in the district
except Missouri, and the condition on May
25 this year shows an important gain for
every State in the district compared to the
10-year average. As previously reported, the
crop is about 10 days later than usual. Reports from private sources indicate that the
continued rains have hindered the cultivation
of the crop to date, but no serious setbacks
have been reported and the stand is imported good. Dryer weather and more sunshine are needed.
The strawberry crop in the large producing
sections of the district is about over. Homegrown berries are still coming into market in
limited quantities in the northern sections.
Reports indicate that the harvest has been
all that was expected of it, and the crop moved
to market at prices satisfactory to producers.
Reports on apples and peaches are somewhat
confusing. It appears, however, that the
apple crop will be below the average and the
peach crop only fair. Indications promise a
good potato crop and the supply of small
fruits, vegetables, and truck-farm products is
abundant. The fodder crops seem to be in




JULY 1,

1916.

the main satisfactory. Hay and clover are
now being cut as far north as St. Louis, and
the stand seems to be unusually heavy. One
or two sections in southeast Missouri report a
second cutting of alfalfa.
The National Stock Yards, Illinois, report a
substantial increase in the receipts of cattle,
hogs, and sheep and a decrease in the receipts
of horses and mules for May.
Banks in this district continue to hold surplus funds largely in excess of their requirements, and this seems to be true of our central
reserve city, St. Louis, and reserve cities, as
well as country banks. Commercial paper is
quoted at from one-half to 1 per cent higher
than it was six weeks ago. Commercial-paper
brokers report an inactive market, with little
demand from either borrowers or buyers. At
this writing this stagnant condition may probably by attributed to a conservative attitude
pending developments with Mexico. The gain
in clearings which has been so noticeable in
the last month in the principal cities of the
District continues. Figures for the week
ending June 10 being as follows: Evansville
21.9, St. Louis 41.8, Louisville 21.7, Memphis
35.6, Little Rock 42.8.
This bank's clearings for May, 1916, were
as follows: Total of items, 217,088. Total
amount, $105,283,260.54, which is the largest
clearings both as to amount cleared and number of items for any month since the bank has
been in business. In May, 1915, the number of
items was 134,452 and the total amount
$47,048,300.31.
DISTRICT NO. 9—MINNEAPOLIS.

General business conditions in the ninth
reserve district show no appreciable change.
Wholesale trade is active, and retail lines are
prosperous. Manufacturing and industrial enterprises have all the business they can take
care of, and orders placed guaranteeing a satisfactory output during the summer and early
fall.
Since the district is largely agricultural, the
chief interest at this season centers in the crop
situation. Weather conditions have prac-

JULY 1,1916.

/

FEDERAL RESERVE BULLETIN.

tically duplicated those of a year ago, with, the
exception that there has been a slightly better
percentage of growing weather. The days
have been cool with continuous rains. All the
small grains are in very excellent condition and
show a sound, healthy growth, with good prospects of a substantial yield. Corn has suffered
the same reverse that overtook it a year ago,
and is making slow progress. The wheat acreage is reduced approximately 15 per cent, and
the corn acreage will be less than a year ago.
Conditions as a whole would seem to indicate
that the crop the Northwest will harvest this
year will show good average yields of all small
grains, although the total crop will be somewhat less, and the corn crop short.
General business conditions are reflected in
larger clearings and increased volume of loans,
increases in building permits issued, and in
rural and urban construction of ail sorts.
The farmers are spending considerable money
in permanent improvements, and line lumber
yards have been doing a brisk business.
Post offices at the principal centers show
gains, as does Minneapolis where there was
an increase of 15.2 per cent in receipts during
the first 20 days of the month.
Money is easy at rates which show no appreciable change. The previously heavy reserves of some of the larger banks are being reduced, and some of the banks in purely agricultural sections are beginning to rediscount.
The indications are that the demand for money
in the current operations of farming and business is improving. The outlook is for some
hardening of rates.
Labor is fully employed at very good wages,
and good men are hard to obtain. There is
some complaint that the present high level of
wages has brought no improvement in efficiency.
The traffic situation has improved somewhat,
and with a more moderate movement toward
the eastern seaboard the car situation is more
satisfactory. The general volume of business
handled by the northwestern transportation
lines is considerably improved as compared
with a year ago.




349

DISTRICT NO. 10—KANSAS CITY.

The month has been generally unfavorable
to vegetation, but beneficial rains have fallen
in ample volume at all but a few points. Hail
and floods have resulted in considerable damage, but this has probably not been more than
normal.
On the whole the condition of the wheat has
not deteriorated. In some localities the rains
have- brightened prospects, while in others insect damage has continued. The latest reliable Kansas estimate is a 100,000,000 bushel
crop. The harvest is working northward and
the quality, as a rule, is better than last year,
although the yield is somewhat reduced. The
first alfalfa crop has been cut, the yield being
heavy and of fine quality. The cotton outlook
was never brighter in spite of the lateness of the
season. Stocks of wheat in Kansas City on
June 3 had increased to 6,150,000 bushels,
nearly three-fourths million bushels more than
on May 1, and 13 times as much as a year ago.
Such a stock of grain in storage is unprecedented at this time of the year. Grass is in
fine condition. It has been too cool and wet
for corn and considerable replanting has been
necessary.
There is a growing unrest in labor organizations, and strikes have been rather frequently
reported from different cities and in various
industries. Building operations have been especially hampered. There is a serious shortage
in harvest hands. Kansas, alone, must import
a total of 45,000 men, while less than 3,000 are
at present available.
In lumber the business of the first five
months of this year shows an increase in volume
of over 50 per cent, both wholesale and retail,
over the same period of 1915. The retail lumber business in the agricultural section experienced some dullness during the months of May
and June, farmers being especially busy at this
season of the year, but lumbermen generally
anticipate that beginning with July there will
be a good volume of business during the balance
of the year. Dealers expect that with the resumption of normal buying by retailers the
market will show some stiffening.

350

FEDERAL RESERVE BULLETIN.

JULY 1, 1916.

Building permits issued in the following out difficulty. The past 60 days have shown
principal cities for the first five months of 1915 some expansion in loans. Deposits in all
banks and trust companies in the reserve cities
and 1916 are:
of the district show a most satisfactory increase
over the last preceding reports.
Increase.
1916
1915
A further indication of active business conCity.
Amount.
Amount.
No. Amount.
No.
No.
ditions is reflected by the following statement
of total clearings for the first five months of
136 $426,614
Kansas City.. 1,479 $4,144,190 1,443 84,570,804
160 844,107
600 2,707,947
440 1,863,840
Omaha
1915 and 1916:
i 151 499,695
1,164 1,784,390
1,315 1,284,695
Denver
Lincoln
St. Joseph
Wichita
Topeka
Oklahoma
City
Pueblo
Muskogee

225
283
99
193

686,329
368,194
197,905
280,830

235
274
152
215

968,455
631,947
957,435
377,907

109
53
22

282,126
263,753
759,530
97,077

52
64
15

193,844
74,445
23,315

163
81
33

747,030
125,985
63,090

111
17
18

553,186
51,540
39,775

i Decrease.

Railroad earnings oil practiealty all main
lines within the tenth district have shown a
most satisfactory increase in net revenue over
a similar period of last year.
This has been a record-breaking period in
oil, both in increased equipment for producing
organisations and in volume of completed
wells. Two thousand wells were completed
during last month in the Mid-Continent field,
starting with an estimated new production of
105,000 barrels a day, and the current month
promises- to exceed even that wonderful record.
It is estimated that 6,000,000 acres of Kansas
land are under leases of oil promoters, and the
field is constantly widening. Lately Wyoming
has attracted great attention and is enjoying
important developments. Present indications
are that the production of the Mid-Continent
field will continue to increase, but the certainty of a multiplying demand is expected to
maintain the industry at its substantial prosperity. The second largest oil well in Oklahoma has just been completed, and is said to
be producing 14,000 barrels of oil daily, while
the largest sale in the history of the petroleum
business is just reported, involving a consideration of $12,000,000.
There has been no appreciable change in the
rates of discount, although most bankers express the opinion that higher rates will be in
effect in the near future. Banks are able to
handle the usual crop-movement demand with-




City.

1915

Kansas City
Omaha.
Denver..,
St. Joseph
Wichita
Oklahoma City.
Lincoln...
Muskogee
Topeka...

1916

| SI, 522,684,2
388,813,871
186,161,862
161,066,378
74,707,641
52,961,628
48,484,812
14,206,564
30,956,676

Increase.

$1,750,606,524 .$227,922,255
488,166,491
99,352,620
241,777,775 55,615,913
199,534,418 38,468,040
95,176,800 20,469,159
70,643,427 17,681,799
62,683,157 14,198,345
26,146,862 11,940,298
35,325,321
4,368,645

Perhaps no statement more clearly indicates the trend of business than a comparison
of postal receipts in the cities named for the
first five months of 1915 and 1916:
City.
Kansas City, Mo...
Omaha,
Denver
Oklahoma City
Lincoln
Wichita
St. Joseph
Topeka
Kansas City, Kans,
Pueblo
Muskogee
Cheyenne

1915

1916

$1,268,190
607,477
559,627
196,122
215,123
139,611
161,281
172,437
82,620
53,974
47,341
22,903

$1,429,305
676,565
622,755
236,663
199,840
171,797
165,735
182,542
84,824
60,391
•51,160
30,427

Increase.
$161,115
69,088
63,128
40,541
15,283
32,186
4,454
10,105
2,204
6,417
3,819
7,524

The live-stock industry is more prosperous
for the time being than ever in its history.
The increase of receipts so far this year over
last year at the five principal western markets is as follows: Cattle, 300,000 head; hogs,
1,300,000 head; sheep, 75,000 head.
In spite of this somewhat remarkable increase
in receipts, the prices have ranged from $1 to $2
per hundredweight higher than a year ago. The
highest price ever obtained for cattle in June,
$11.25 per hundredweight, was reached this
month on the Missouri River markets. There
is every prospect for early fat cattle off the
grass and when these begin to come in freely it
is natural to look for cheaper beef. The demand for cattle loans has strengthened consid-

JULY 1,

1916.

FEDERAL RESERVE BULLETIN".

erably, caused by western and southwestern
cattlemen buying young stock to replace the
older stock sent farther east to the fattening
pastures.
There has been a downward tendency in the
metal market, including tungsten, lead, copper,
and spelter. Capital, however, is seeking
mines, gold and silver properties being most in
demand. In many districts mines have doubled their output of values compared with last
year, and they are now earning large profits for
both owners and lessees. Zinc ore production
throughout the district continues to be curtailed about 30 per cent as a result of strikes.
The total ore output for the Leadville (Colo.)
district for 1916 is estimated at $18,000,000, a
gain of 50 per cent over 1915.
Jobbing interests are highly pleased with the
spring volume of trade, which greatly exceeds
that of the last few years. The sale of farm
implements has broken all records for the last
five years. In dry goods a good volume of
business is reported. In footwear business
continues to be much above normal.
DISTRICT NO. 11—DALLAS.

Conditions in the agricultural sections of the
district are receiving attention at this particular time, and interest is largely centered in that
direction. Conflicting reports are received as
to the crop development. The small-grain crop
is being harvested, and weather conditions
could hardly have been more favorable. Estimates vary as to the yield. The crop will be
nearer normal in the northern counties of
Texas and the Panhandle section. A conservative estimate as to wheat yield would be 10 to
12 bushels to the acre; oats, from 20 to 30
bushels. It is difficult to reconcile reports as
to the size and yield of the grain crop. Undoubtedly due to drought and unseasonable
freezes there is a substantial decrease in acreage. It seems certain, too, that the average
yield is less than in 1915. The quality of the
grain is very good in practically every section
of the State. A conservative estimate of the
wheat is 12,000,000 bushels. The oat crop is
from 60 to 75 per cent of the yield last year.




351

In a considerable portion of the southwest conditions are very unfavorable. Few farmers in
that section will make any crops at all to speak
of on account of the drought. It is estimated
that 75 per cent of the farms in that section
have not been planted or will have to be replanted when it rains. Most of the stockmen
in that territory are shipping their cattle away
where grass can be had. Others are, to prevent loss, feeding cottonseed cake at a considerable expense.
Cotton.—The most careful inquiry possible
as to the acreage and condition of the cotton
crop appears to justify the following statement
as conservative: Due to conditions of continued drought in the more settled portions of
southwest Texas, where last year excellent
crops were raised, the productive acreage of
cotton will not be so much increased as seemed
likely a month ago, unless the proportion of
land planted in grain, to be replanted in cotton,
is greatly increased. In view of the fine rains
in the more central belt, this seems not unlikely. The plant is everywhere from two to
three weeks late, but the stands are good, the
plant thrifty, and in excellent state of cultivation. Altogether there is a fair promise of a
substantial, though not extremely large, increase in the yield over last year. The plant
is in an excellent position to realize the maximum benefit should favorable weather be experienced during the remainder of the month,
and adequate moisture and seasonable temperatures would largely reduce the extent of
the early lateness. The boll weevil has made
its appearance in some sections, and rains
would no doubt increase their numbers to a destructive degree.
Promoters of the campaign for the warehousing and gradual marketing of the co:ton crop
are meeting with encouraging developments,
and with several months ahead in which to
promote the campaign it is expected the crop
will be much better handled than in previous
years.
A notable development throughout the district is found in the extreme economy in the
production of the crop. There is some evi-

352

FEDERAL RESERVE BULLETIN".

JULY 1, 1916.

dence of hoarding, in the sense that many maturities. There is quite a decrease in the
persons are keeping their deposits intact and amount of live-stock paper offered, as at this
declining to invest their funds, in view of the season stockmen are shipping their stock and
uncertain conditions prevailing, threatening liquidating their obligations. The loans and
possible war, and in view further of possible discounts of this bank show a decrease over the
conditions at the close of the European war.
same period a 3^ear ago of some $900,000, indiCorn.—The corn crop is, as a rule, in a sat- cating that the member banks are in much
isfactory condition. Recent rains over the better condition to go through the summer
corn belt have been very beneficial, and with months.
favorable conditions the crop will be large.
The cattle and sheep industries are active.
However, much will depend on the amount of In the extreme West ranges are getting short
rainfall for the next 30 days. Indications at on account of lack of rain, though conditions
present are that the crop will be from 75 to 90 in this regard have not become serious. There
per cent normal.
is little demand for steers, but she cattle are
The rice crop is in good condition, and grow- commanding high prices. Sales of sheep are
ers anticipate satisfactory results for the sea- being made in New Mexico for fall delivery at
son. Hay, sorghum, cane, and other feed high prices. The wool clip is large and market
crops are exceptionally good.
satisfactory^ though prices are not as good as
The fruit crop is considerably lighter than producers expected to receive.
last year, owing to the late spring. The vegePost-office receipts of the nine largest cities
table yield is normal and large shipments are of the district show an increase of 15 per cent
being received at the present time, with good for May over same month 1915. Figures are
prices obtaining. The orange crop of Harris, as follows: May, 1915, $253,535; May, 1916,
Brazoria, and Galveston Counties, maintain- $301,917; increase, $48,382.
ing an acreage of some 3,000 trees of bearing
Record clearings are reported by the same
age, is very short. The dry spring caused the cities, and an increase of over 15 per cent is
young fruit to drop off after setting, and a shown. All the cities report a substantial incrop of 25 per cent of normal will be considered crease, with one exception. Thefiguresare:
good. The strawberry crop of south Texas May, 1915, $128,543,033; May, 1918,- $145,was likewise short, though good prices were 720,245; increase, $19,177,212.
had.
Building permits issued in seven of the prinIt is estimated that the peach crop of Texas cipal cities of the district show a slight decrease
will not exceed 1,500 cars; tomatoes not more both in number and valuation for May, 1916,
than 750 cars, which is about 75 per cent of over same month a year ago. Thefiguresare:
last year's acreage. The quality, however,
is very fine, and prices are good. It is anticiNumber. Valuation.
pated that the entire season will be more profit1,102
SI, 434,489
able than last year. The onion production of May, 1915
1,056
1,234,732
May, 1916
southwest Texas was an average crop at good
Decrease
46
199,757
prices, and the net results were the best for
several years.
There is considerable building under way,
There is little change in the financial situahowever,
and in almost every instance the
tion. I t is noted that the discount offerings
totals
for
the
first five months of the present
with this bank have increased some half million
year
show
a
substantial
increase over the same
dollars over a month ago, indicating that member banks are beginning their seasonal de- period last year.
Failures over the district for the period
mands. The character of paper offered consists largely of small notes of farmers, with fall May 15 to June 15, 1915, as against the same




JULY 1,1916.

FEDERAL RESERVE BULLETIN.

period 1916, were as follows: 1915, 78; liabilities, $483,197. 1916, 53; liabilities, $449,652.
The high prices obtaining for copper have
stimulated that industry and business generally in the West, and unusual activity is reported from the mining sections. Operations
in the oil fields continue on a large scale.
Productive fields are being extended, and
indications are that new fields will be soon
opened. Good prices are had for the output.
There is a good demand for lumber and cement. Lumber mills in southeast Texas are
operating on a five-day-a-week schedule, some
of the larger mills running night and day shifts.
Orders for foreign and coastwise shipments
keep the industry active. The wholesale
grocery business shows a steady improvement,
and a large increase over the same month last
year, with collections good.
.Business with wholesalers and retailers is
excellent, and shows an increase of 7 to 15
per cent. One of the larger retail firms report
their business will, for the fiscal year ending
June 30, show a small increase over the best
year in their history. An improvement in
collections, in keeping with the increased
volume, is reported. Mail-order houses report
an increase in business of 20 per cent.
Transportation lines report a substantial
increase of from 10 to 12 per cent in freight
and 40 to 50 per cent in passenger traffic.
Improved conditions are reported as to the
shortage of equipment; in fact, officials report
a slight excess, and more equipment than is
needed.
Reports from widely separated, but it is
believed authentic, sources indicate that labor,
both skilled and unskilled, was never so
universally employed, or at so remunerative
rates. This is true as to practically every
section of the State, except along the Rio
Grande border. Harvesting of crops has
absorbed unskilled labor, as well as many of the
skilled workmen who could not find employment at their trades.




353

DISTRICT NO. 12—SAN FRANCISCO.

While the crops of this section will be less
than the average, due to damage by late frost
and drought, the farmers and fruit growers will
be protected from loss through the greater
prices which they will receive for their products. Peach growers, who last year permitted
their crops to rot on the trees because of the
unprofitable prices then prevailing, are this year
contracting to sell their product, which will be
40 to 60 per cent of the average, at more than
double the prices prevailing at the same time
last year.
The wine-grape crop of this section was sold
last year at about $10 per ton. Growers are
now being offered $14 per ton, which is the
highest price which has been quoted during
eight years. Table and raisin grapes are also
bringing a materially increased price.
Packers of dried fruits are bidding as high as
$40 to $50 per ton for green and 14 cents per
pound for dried apricots, while the growers are
in most cases holding their crops with the expectation of obtaining $60 per ton for the green
and 15 cents per pound for the dried fruit. The
prosperity of citrus growers during the past
season has encouraged greater activity in the
planting of new orchards than has existed for
several years past. The damage from frost to
apples and pears in the Northwest has been
quite serious and general, but the prediction is
made that, notwithstanding this, the year's
crop will exceed that of 1915.
This year's grain crop of the twelfth district
will be from 20 to 30 per cent less than that of
last year. This shortage is due to the unusual
drought which has prevailed during the spring
in certain parts of California. High winds
have shattered the ripening grain before harvest could be completed in other sections. A
material decrease in acreage is reported from
the Northwest. It is asserted that the carryover from last year's wheat crop in Oregon and
Washington equals 20 to 40 per cent of last
year's crop.

354

FEDERAL BESEBVE BULLETIN.

Mining has during the past year been the
most profitable industry within this district.
The next most profitable one has been that of
live stock. Recent rains in Idaho have greatly
benefited the grazing lands. Sheep, wool, and
cattle are all bringing high prices in all of the
States of this district. Dairying is also
prosperous.
The revival of the lumber business in Washington, Oregon, and California has added
greatly to the prosperity of these sections.
Many mills which have until recently been
closed are running at capacity. Lack of ships
to move the product by water is a handicap.
The strike of longshoremen, which affects all
Pacific coast ports, is detrimental to water
transportation.
Mining operations are being conducted at
full capacity. It is reported that Utah's
output of minerals during this year will exceed
the record-breaking production of last year.
Idaho reports that the crest of the wave of
prosperity has been reached in that State
because of the recent decline in the prices of
zinc, silver, and copper, of which it is a heavy
producer.
The production of petroleum is still increasing, with all of the large operators engaged in
increasing their outputs in the fields, their
refining capacities, and in adding to their
transportation fleets.
It is too early to predict the result of this
year's packing season of salmon and tuna fish.




JULY 1,

1916.

It is, however, reported that there is some
disappointment at the small catch of salmon.
Results of the operations of this industry in
Alaska or other distant waters are not yet
available.
Commercial conditions throughout the district are better than normal. The radical
advance in prices that affected all lines of
merchandise does not seem to have curtailed
the demand, and the volume of business being
transacted by jobbers and other distributing
agencies is in excess of the same period of 1915.
While buying by v/holesalers is now conducted
on a more conservative basis than earlier in
the year, due to the high prices now prevailing, the demand does not seem to have been
affected. Advance orders for dry goods and
like lines taken by wholesalers for fall delivery
are very much larger in volume than ever
before experienced in this section.
Collections are reported to be much better
than usual. Reports from 17 cities of this
district show an increase over the same
month of last year of 31 per cent in bank
clearings and 32 per cent in building permits
for the month of May.
Automobile registration for the district
during the five months of this year is 13 per
cent over the total registrations for the entire
year 1915.
The demand for loans has perceptibly increased in all parts of the district, and the real
estate market is showing signs of revival.

JULY 1,

1916.

FEDERAL RESERVE BULLETIN.

355

DISTRIBUTION OF DISCOUNTS BY SIZES eastern banks; also of $21,000 of domestic trade
acceptances likewise bought in the open market
AND MATURITIES.
by the Atlanta bank and its branch during the
Discounts of commercial paper reported by month under consideration.
Federal Reserve Banks for the month, of May
The total number of bills discounted during
totaled $11,195,400, or about 3 per cent less the month was 8,300, compared with 7,031 in
than for the month before, and about 8.per April, 1916, and 9,558 in May of 1915. The
cent less than for May, 1915. Of the total average size of the paper discounted during the
discounts for the month, 58.2 per cent, as month "was about $1,350, as compared with
against 68.1 per cent in May, 1915, is credited $1,640 for April, about $1,610 for the first four
to the three Southern banks. Philadelphia is months of the present year, and about $1,270
the only other bank which reported total dis- in May, 1915. These averages vary between
counts for the month in excess of 11,000,000, $620 for New York, where, however, the total
of which 63 per cent was 10-day paper dis- discounts for the month amounted to only
counted for local banks. The total discounts $191,300, and $3,240 for Philadelphia, where
for the first five months of the present year over 30 per cent of the bills discounted was in
were $50,883,600, compared with $59,337,800 denominations of over $10,000. For the three
for the corresponding period in 1915.
southern banks the average for the month was
Commodity paper discounted during the slightly in excess of $1,210.
month by five Federal Reserve Banks totaled
About 30 per cent of the number, and over
$899,400, compared with $1,370,700 for April, one-half of the amount of paper discounted
and constituted a little over 8 per cent of the during the month was medium-sized paper in
total discounts for the month, compared with denominations of over $1,000 to $5,000.
about 12 per cent for April, 18.3 per cent for Small notes (in sizes up to $250) constituted
March, and 23.4 per cent for February. Over over 27 per cent of the total number, though
97 per cent of this class of paper was handled less than 3 per cent of the total amount of bills
by the Richmond and Atlanta banks, of discounted during the month. About 75 per
whose total discounts for the month com- cent of the total number of small bills, as
modity paper constituted about 19 and 18 against 65 per cent of the total number of all
per cent respectively. Over 97 per cent of all bills, were discounted by the three southern
commodity paper was secured by cotton. The banks. Over 11 per cent of the total discounts
amount of commodity paper discounted since for the month is represented by largest size
January of the present year was $7,647,400, of bills (in excess of $10,000 each). Much larger
which 96 per cent is credited to the Richmond shares of this class of paper, viz., 30,2 and 28,3
and Atlanta banks.
per cent, are shown for the Philadelphia and
Trade acceptances (two-name paper) dis- St. Louis banks.
counted during the month by 7 reserve banks
Of the total paper discounted during the
totaled $298,300, compared with $240,000 in month, 11.2 per cent was paper maturing
April, and an average of about $307,000 for the within 10 days at the time of rediscount; 17.6
first four months of the present year. Of the per cent paper maturing after 10 but within
total of $1,527,500 of this type of paper dis- 30 days; 23.4 per cent paper maturing after 30
counted since January 1 of the present year, but within 60 days, and 26.4 per cent paper
about 74 per cent was handled by the Rich- maturing after 60 but within 90 days. Large
mond and Atlanta banks. The monthly total decreases, as compared with May, 1915, figures,
is exclusive of $900,000 of trade acceptances are shown for the amounts of 60 and 90 day
based upon foreign trade transactions and paper discounted during the month. The dispurchased in the open market mainly by the counts of 60-day paper for the first 5 months




356

FEDERAL EESERVE BULLETIN.

of the present year show a decrease of 7.5 millions, as compared with 1915 figures, and those
of 90-day paper a decrease of 2.4 millions. On
the other hand, the amount of 30-day paper
discounted during January-May, 1916, was
about 0.3 million, and the 1916 amount of
6-month paper about 1.2 millions in excess of
corresponding 1915 figures.
About 2.4 millions, or over 20 per cent of all
the bills discounted during the month, was agricultural and live-stock paper, maturing after
90 days at the time of rediscount (6-month
paper). The Dallas bank handled almost 40
per cent of this class of paper, which constituted more than one-half of the bank's total
discounts for the month. Kansas City reports
$314,000 of 6-month paper discounted, or 50
per cent of the bank's total discounts for the
month, while Minneapolis discounted $247,300
of this class of paper, or over 75 per cent of the
bank's discounts for the month.
On the last Friday in May the holdings of
discounted paper totaled about 20 millions, of
which 13.2 millions, or about two-thirds, represents the holdings of the three southern banks.
Since the beginning of the year the total of discounted paper on hand decreased about 12 millions, or 37 per cent.
Of the total number of member banks—7,606
at the end of the month—655, or about 8.6 per




JULY l,

1916.

cent, rediscounted with the Federal Reserve
Banks, as against 606 the month before and 693
in May, 1915. In the three southern reserve
districts the number of banks accommodated
for the month was 335 as against 412 in May,
1915, and like decreases in the number of rediscounting member banks are noted for the four
eastern and the San Francisco districts. Considerable increases in the number of rediscounting banks, as compared with May, 1915, are
shown for the Chicago, Minneapolis, and Kansas City districts, where an increasing number
of banks in the rural districts is rediscounting
in some volume agricultural and live-stock
paper. Dallas, with 130 discounting banks out
of a total of 616 member banks in the district,
and Richmond, with 115 out of a total of
513, report the largest absolute and relative
number of banks accommodated during the
month.
During May, 1916, 117 member banks in
Texas secured $1,459,000 of rediscounts; 11
| banks in Pennsylvania a total of $1,451,000; 31
banks in North Carolina a total of $1,254,600;
39 banks in South Carolina a total of $917,000,
and 41 banks in Georgia a total of $904,800.
The combined share of the discounts secured
by the 239 banks in these five States constitutes over one-half of the aggregate discounts
reported to the board for the month.

357

FEDERAL RESERVE BULLETIN".

JULY 1,1916.

Commercial paper, exclusive of bankers' acceptances, rediscounted by each of the Federal Reserve Banks, during the month of
May, 1916, distributed by sizes.
NUMBER OF PIECES AND AMOUNTS,
[In thousands of dollars.]
$100 Over $250
To $100 Over
to $250.
to $500.

Over $500
to $1,000.

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

Over
$10,000.

Total.

Per cent.

Banks.

a-g
Boston
New York
Philadelphia
Cleveland
Richmond^
Atlanta (including
N ew O r l e a n s
branch)
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total.

If

it

64 157.9 0.8 1. 4 $2,!,470
620
307 191.3 3.7 1.7
490 1,590.1 5.9 14.2 3,240
161 240.6 1.9 2.1 1,490
248.7 2,239 2,987.1 27.0 26.7 1,330

17
38
121
62
428

30.4
58.5
225.4
116.3
733.1

55. S
34.7
524.4
55.6

30.0
7.2
269. 7
31.4
461.3

225
186
61
101
115
263
26

376. 7
310.7
98.6
143.2
187.0
426.9
42.5

515.5
210.6
182.5
57.3
144.4
467.2
29.9

328.6
31.0
101.7
34.
80.5
354, 5
38.9

212.11,367 1,738.6 16.5 15.5 1,270
15.0 643 769.1 7.7 6.9 1,200
279 621.5 3.4 5.6 2,230
175.
10.9 281 327.1 3.4 2.9 1,160
53.7 601 627.4 7.2 5.6 1,040
87. 71,763 1,788.0 21.2 16.0 1,010
15.1* 105 156.7 1.3 1.4 1,490

798 44.9 1,453 275.9|1,695 655.01,596 1,223.2 1,64312,749.3 806 3,158.5 242 1,769.6

67 1,319.0 8,30011,195.4 100.0 100.0 1,350

4.4 21 17.3
15.4
33.9 58 40.0
51 8.4
22.6 75 58.1
21 3.8 27 11.1 29 22.4
208 68.4 494 198.6 474 384.5

22
1.5

34411.9

209 14.1 328 53.1 216 81.6
1.9
72 12.7 138 57.4
1.7
31 5.2 47 18.1
.1 20 3.3 57 22.5
4.1 124 20.6 117 41.5
7.6 505 83.8 417 154.3
.4
7 1.2 23 9.0|

200 158.9
157 129.8
50 37.9
77 55.0
136 95.6
290 206.0
29 19.7

20.0

17

480.0

P E R C E N T A G E S OF AMOUNTS O F EACH CLASS TO TOTAL.
Banks.

To $100.

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

Over $100
to $250.

Over $250
to $500.

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

Over
$10,000.
12.7

Total.
100.0
100.0
100.0
100.0
100.0

.5
1.6
2.3

2.8
17.7
1.4
4.6
6.7

11.0
20.9
3.7
9.3
12.9

19.2
30.6
14.2
48.3
24.5

35.3
18.1
33.0
23.1
29.5

19.0
3.8
17.0
13.1
15.4

30.2

3.1
1.7
.8
1.0
3.3
4.7

4.7
7.5
2.9
6.9
6.6
8.7

.8

5.7

21.7
40.4
15.9
43.8
29.8
23.9
27.1

29.6
27.4
29.4
17.5
23.0
26.1
19.1

18.9
4.0
16.3
10.7
12.8
19.8
24.8

12.2
1.9
28.3
3.3
8.6
4.9

.3

9.0
16.9
6.1
16.8
15.2
11.5
12.6

9.6

100.0
100.0
100.0
100.0
100.0
100.0
100.0

.4

2.5

5.8

10.9

24.6

28.2

15.8

11.8

100.0

Commercial paper, exclusive of bankers1 acceptances, discounted during May by each of the Federal Reserve Banks,
by States and maturities as of date of discount.

distributed

0.8

.4
.8
.2
.3
.7
.4

Total...

8.1

8.3

[In thousands of dollars.]
Paper maturing—
Number
Number
of banks
of member accommobanks.
dated

Districts and States.

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

.

Total
District No. 2—New York:
Connecticut
New Jersey.
.
.
New(ii York
Total.




.

. -.

..

Within 10
days.

After 10
days but
within 30
days.

After 30
days but
within 60
days.

3.0

After 60
days but
within 90
days.

After 90
days.

Total
commercial paper
discounted.

56
68
164
56
17
48

3.6

6.6

1
2

40.0

50.6
5.5

3.6

6.9

90.6
16.0

3

1.0

14.4

19.1

10.8

.45.3

409

7

41.0

72.9

26.3

17.7

157.9

15
131
479

4
13

2.5

13.6
17.2

7.6
51.4

10.4
85.2

3.4

37.5
153.8

625

17

2.5

30.8

59.0

95.6

3.4

191.3

1

358

FEDERAL KESEKVE BULLETIN.

JULY 1,1916.

Commercial paper, exclusive of bankers' acceptances, discounted during May by each of the Federal Reserve Banks distributed
by States and maturities as of date of discount—Continued.
[In thousands of dollars.]
Paper maturing—
Number
Number
of banks
After 10
After 30
After 60
of member accommoWithin 10 days but days but days but
banks.
dated
within
30
within
60
within
90
days.
days.
days.
days.

Districts and States.

District No. 3—Philadelphia:
Delaware
. .
New Jersey
Pennsylvania
'
Total
District No. 4—Cleveland:
Kfintuckv

Ohio
Pennsylvania
West Virginia.

. . . .

Total. . . .
District No. 5—Richmond:
District of Columbia .
Maryland
North Carolina
South Carolina
Virginia
.
.
West Virginia
Total
Florida
Louisiana

MississiDDi .

Tennessee

-

Total
District No. 7—Chicago:
Illinois
Indiana
. . -. . . . . . . . . . . . . . . . .
Iowa
• - - - ......................
Michigan
Wisconsin.
Total

.

.•

District No. 8—St. Louis:
Tlliiioi^
K>ntuckv
MississiDDi
Missouri
Tennessee

24
71

1
3

533

11

34.4
962.5

38.8
419.1

8.6
17.1
44.6

39.7
18.8

.5
6.0

8.6
130.5
1,451.0

628

15

996.9

457.9

70.3

58.5

6.5

1,590.1

72
374
300
13

13
5
1

1.7

42.6

14.2
2.5

28
52.6
2.3

2.5

14.2
81.9
5.3
2.5

8.5

7.0

27 2
198.3
10.1
5.0

759

24

7.0

46.8

103.9

25.2

57.7

240.6

97
79
77
141
104

10
31
39
29
6

63.1
8.2
17.0
3.9

5.0
380.3
168.7
145.0
6.8

28.4
363.8
276.7
220.8
19.5

121.9
409.2
330.2
198.1
39.1

1.1
38.2
133.2
8.9

156.4
1,254.6
917.0
589.8
69.3

513

115

92.2

705.8

909.2

1,098.5

181.4

2,987.1

93
56
110

23
10
41

1.0

39.2
13.0
143 1

150.0
32.4
367 8
22.5

114.0
24.2
107 7

21
18
93

111.9
19.9
286 2
68.7

2.4

415.1
90.5
904 8
93.6

13

34.6

86.6

113.4

391

90

229.9

573.3

686.1

248.3

1,738.6

318
196
349
77
51

16
15
36
4
2

83
25.9
23.4

58 6
65.5
122.8

41 1
30 7
64 9

34 8
34.3
194.7

3.0
6.6

20.0

142 8
156 4
405.8
35.2
28.9

991

73

146.3

288.3

769.1

64
157
61
68

4
15
3
3

7.0

7.6
19.9

29.3
89.6

12.0
11.0
42.8

21.7

27.0
32.8
429.0

15

District No. 6—Atlanta:

. ........................
... . .....

T o t a l . . . . •—

After 90
days.

Total
commercial paper
discounted.

5

3

18
81

2
12

20

1

469

40

31
281
68

31

1.0

15.0

4.7

8.0
2.3

15.0

62.3

257.2

.8

6.9
3.1

17.7

7.0
6.4
5.0

48.9

234.6

4.5

6.4

93.0

10.0
14.8
222.2

7.0
49.3

.3

6.2

.9

94.1

263.2

93.3

121.7

49.2

621.5

2.7
2.3

48.2

17.1
.4
1.0
1.6

108.9
23.8
20.7
93.9

176.9
29.3
21.7
97.5
1.7

7.4

District No. 9—Minneapolis:
MlTlTK^JOtfl

Montana
North Dakota
Sontli DakotOi

Wisconsin

Total....

-

District No. 10— Kansas City:
Colorado

Missouri
"Nfillvfi ska.
NAW Mfixico

Oklahoma
Wyoming
Total




•

.

. .

154
123
88

5
7
13
2

.7

.5

2.0
.5

745

58

.7

5.5

53.5

20.1

247.3

327.1

120
220
53
199

3
15

2.7
44.1
10.1
7.7"
24.8
55.0

5.5
134.1
13.2
9.8
35.5
113.8

9.4
197.5
30.2
21 7
86.2
280.3

2.1

2.1

144.4

314.0

627.4

2.8

9
304
34

2
30
1

29.9

1.2
17.0
6.0
4.2
23.4
81.6

939

60

35.6

133.4

6
3

2.3
.9
2.5

359

FEDERAL RESERVE BULLETIN.

JULY 1,1916.

Commercial paper, exclusive of bankers' acceptances, discounted during May by each of the Federal Reserve Banks, distributed
by States and maturities as of date of discount—Continued.
[In thousands of dollars.]
Paper maturing—
Number
Number
of banks
of member accommobanks.
dated.

Districts and States.

District No. 11—Dallas:
Arizona
Louisiana
.
New Mexico
Oklahoma
Texas

. . .
.

Total
District No. 12—San Francisco:
Alaska
.
Arizona
California
Idaho
Nevada
.
Oregon
Utah
Washington

After 30
days but
within 60
days.

After 60
days but
Within 90
days.

2.6

11.4
28.9
35.2
444.0

13.2
89.8
92.3
743.3

27.5
137.5
164.0
1,459.0

After 90
days.

6
10
28
33
539

1
8
14
107

35.3

2.9
16.2
36.5
236.4

616

130

37.9

292.0

519.5

938.6

1,788.0

16
3

20.9

18.8
7.7

25.8

38.3
3.3

103.8
11.0

6

22.3

1.9

14.6

38.8

1

3.1
27.7

56.2

156.7

1
7
262
58
10
82
23
78

Total

Within 10
days.

Total
commercial paper
discounted.

After 10
days but
within 30
days.

26

521

20.9

3.1

51.9

RECAPITULATION.
[In thousands of dollars.]
Paper maturing—
Number
of
member
banks.

Districts and cities.

No. 1—Boston...
No. 2—New York.
No. 3—Philadelphia
No. 4—Cleveland
No. 5—Richmond
No. 6—Atlanta
(including
Orleans branch)
No. 7—Chicago.
No. 8—St. Louis
No. 9—Minneapolis
No. 10—Kansas City
No. 11—Dallas.....
No. 12—San Francisco...-

Number
of banks
accommodated.

Within 10
days.

409
625
628
759
513

7
17
15
24
115

41.0
2.5

391
991
469
745
939
616
521

90
73
40
58
60
130

1.0
15.0
94.1
.7

7,606

655

After 10
days but
within 30

After 30
days but
within 60
days.

After 60
days but
Within 90
days.

Total forj January-May, 1916.
Total for January-May, 1915.

157.9
191.3
1,590.1
240.6
2,987.1

1.4
1.7
14.2
2.1
26.7

248.3
288.3
49.2
247.3
314.0
938.6
56.2

1,738.6
769.1
621.5
327.1
627.4
1,788.0
156.7

15.5
6.9
5.6
2.9
5.6
16.0
1.4

2,961.3
26.4

2,390.9
21.4

11,195.4
100.0

100.0

16,901.3
19,291.4

7,882.7
6,702.7

50,883.6
59,337.8

72.9
30.8
457.9
• 46.8
705.8

26.3
59.0
70.3
103.9
909.2

17.7
95.6
58.5
25.2
1,098.5

3.4
6.5
57.7
181.4

229.9
62.3
263.2
5.5
35.6
37.9
20.9

573.3
257.2
93.3
53.5
133.4
292.0
51.9

686.1
146.3
121.7
20.1
144.4
519.5
27.7

1,250.4
11.2

1,969.5
17.6

23.4

3,300.1

8,708.7

14,090.8
21,607.8

7.0
92.2

New

Total for May.
Percent

After 90
days.

11,735.9

Total
commercial Per
cent.
paper
discounted.

1
Trade acceptances discounted by each Federal Reserve Bank from Sept. 2, 1915, date of first discount, to May 31, 1916.

Federal Reserve Bank.

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




Total to
Dec. 31,
1915.

May, 1916.

$5,700

Total
for first
5 months
in 1916.

4,900
450,500

$33,900
10,800
126,900

$5,600
37,600
68,500
642,500

1,007,100

91,700

486,900
8,200

Federal Reserve Bank.

St. Louis
,
Minneapolis...,
Kansas City....
Dallas
San Francisco.
Total.

Total to
Dec. 31,
1915.

$167,800

May, 1916.

$27,600
600

87,800
160,800
74,200

6,800

1,958,800

298,300

Total
for first
5 months
in 1916.
$140,500
600
80,000
51,800
5,300
1,527,500

360

FEDERAL RESERVE BULLETIN.

JULY 1, 1916.

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

May, 1916.

Total
for first
5 months,
in 1916.

$2,881,400

$571,800

$4,282,800

7,032,300
99,800
25,300

305,700

3,069,700

5,500

18,800

Total to
Dec. 31,
1915.

Federal Reserve Bank.

Richmond
Atlanta (including New Orleans
branch^
St Louis
i
Minneapolis

Federal Reserve Bank.

Dallas
San Francisco.
Total

Total to
Dec. 31,
1915.

May, 1916.

Total
for first
5 months,
in 1916.

$239,100
37,200

$4,400
12,000

$220,200
55,900

10,315,100

899,400

7,647,400

Commodity paper discounted by each of the Federal Reserve Banks during the five months ending May, 1916, distributed by
classes.

Class.

Cotton
Peanuts
Wheat
Maize
Flax
Hops
,
Hay
Beans
Raisins
Miscellaneous

Richmond.

Atlanta
(including
New Orleans '
branch).

$4,240,400
39,800

$3,065,800
900

Minneapolis.

Dallas.

$213,200
$15 900

1 000
' 3 000

Total

1,000

4,282,800

3,069,600

18,900

$300

7,600
24,000
55,900

7,647,400

24,000

220,200

Amounts of commercial paper, exclusive of bankers' acceptances, held by each Federal Reserve Bank on
tributed by maturities.

Total.

$7,519,700
40,700
15,900
8,000
3,000
24,000
400
500
7,600
27,600

7 000

400
500
2,600

San Francisco.

6, 1916, dis-

Paper maturing-

Within 10
days.

After 10
days, but
within 30
days.

After 30
days, but
within 60
days.

After 60
days, but
within 90
days.

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

$61,500
71,000
497,000
55,400
1,165,700
460,100
175,700
227,200
96,100
211,300
540,000
55,600

$27,200
106,800
126,300
86,100
,321,000
708,000
400,100
305,200
82,100
272,600
758,400
129,000

$33,100
95,200
134,600
93,500
1,849,600
1,065,800
569,000
168,500
148,700
452,000
1,385,700
91,000

$13,800
48,000
43,300
17,900
689,700
436,800
186,300
124,000
23,500
302,700
741,200
41,700

Total...
Percent

3,616,600
17.8

4,322,800
21.2

6,086,700

2,668,900
13.1

Federal Reserve Bank.




After 90
days.

Total.

Percent.

$135,600
324,000
812,000
301,100
5,344,400
3,027,800
1,808,100
905,400
657,600
1,805,600
4,837,000
405,400

0.7
1.6
4.0
1.5
26.2
14.9
8.9
4.4
3.2
8.9
23.7
2.0

3,669,000 20,364,000
18.0

100.0

$3,000
10,800
48,200
318,400
357,100
477,000
80,500
307,200
567,000
1,411,700
88,100

361

FEDERAL EESEEVE BULLETIN.

JOLT 1,1916.

ACCEPTANCES.
Acceptances bought in open market held by Federal Reserve Banks as per schedules on file on dates specified, distributed by
[In thousands of dollars.]
Bankers' acceptances.

Bankers' acceptances.

Nonmember banks.
Date,

Member
banks.

Trust
companies.

1915.
Feb. 22
Apr. 5
May3
June 7
July 3
Aug. 2
Sept. 6
Oct. 4
Nov. 1
Dec. 6

93
3,653
5,038
5,242
4,342
5,350
6,087
9,000
8,477
12,311

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

1916.
Jan. 3
Jan. 10
Jan.17
Jan. 24
Jan. 31
Feb. 7
Feb. 14

15,494
16, 492
16,908
16,348
15,834
15,681
17,581

7,160
8,057
7,655
8,070
8,174
7,876
7,985

State Private
banks. banks.

Total.

20
20
132
253
275

110
110
192
161
352
472
343
204
396

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

362
370
425
363
356
336
347

822
938
1,010
1,441
1,510
1,456
1,851

23, 838
25,857
25', 998
26,222
25;874
25,349
27, 764

10
10
10

Trade
accept- Total
ances acceptbought ances
in open bought.
market.

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

180
180
180
489
528

23,838
25,857
26,178
26,402
27,054
25,838
28,292

Date.

1916.
Feb. 21
Feb. 28
Mar. 6
Mar. 13
Mar. 2 0 . . . .
Mar. 2 7 . . . .
Apr. 3
Apr. 10
Apr. 17
Apr. 24
May!
May 8,
May 15
May 22
May'9
June 5
June 12
June 19
June 26

Nonmember banks.
Member
banks.

Trust
companies.

8,194
17,661
8,755
17,436
8,670
17,182
20,323 10,032
20,563 11,280
21,128 12,864
21,000 13,573
22,239 14,864
22,135 15,028
23,566 15,196
24, 875 15,400
25,058 15, 750
26,633 15,372
26,639 16,490
26,104 16,541
24,680 17,029
27,354 19,209
32,011 19. 490
33,155 18,722

State Private
banks. banks.

Total.

1,841 28,088
392
1,841 28,440
408
1,781 28,041
408
1,631 32,456
470
2,467 34,718
408
3,078 37, 481
411
3,262 38; 308
473
3,405 40,984
476
3, 442 41,169
564
3,504 42,850
584
3,430 44,290
585
3,493 44,972
671
4,960 47, 738
773
6,038 49,857
690
5., 895 49,230
690
7,007 49,360
644
7.865 55, 050
622
9; 067 61,128
560
552 11,009 1 63,438

Trade
accept- Total
ances acceptbought ances
in open bought.
market.

460
460
462
546
678
629
722
874
1,321
1,438
1,477
1,518
1,635
2,006
2,037
2,208
2,310
2,054
2
1,958

28,548
28,900
28,503
33,002
35,396
38,110
39,030
41,858
42,490
44,288
45,767
46,490
49,373
51,863
51,267
51, 568
57,360
63,182
65,396

1 Of the total of $63,438,000 there were $561,000 of trust company acceptances, $62,000 of State bank acceptances, and 11,725,000 of private banks' acceptances which bore the indorsement of member banks.
2 Of the above total ($1,958,000), $229,000 were indorsed by member banks.

Amounts of acceptances held by the several Federal Reserve Banks at close of business on Fridays, May 26 to June 23, 1916,
[In thousands of dollars.]

Acceptances maturing—

Within 10 days:
May 26
June 2
June 9
.
June 16
June 23
From 11 to 30 days:
May 26
June 2 .
June 9
June 16
June 23
From 31 to 60 days:
May 26
June 2
June 9
June 16.
June 23
From 61 days to 3 months:
May 26
June 2
June 9
June 16 . .
June 23
Total acceptances held:
May 26
June 2
June 9
June 16
June 23 .
. .




Boston.

. .

New
Phila- CleveYork. delphia. land.

920
3 044
1,435
1,196
870

2,462
2 819
2,285
4,492
5,296

1,273
1,246
1,226
1, 358
1,764

55
231
509
224
550

4,242
2,085
1,515
895
209

4,079
5,888
6,627
5,460
3,382

2,245
2,537
2,680
2,454
2,098

650
567
916
970
468

934
1,690
3,373
4,832
5,874

7,831
6,339
5,255
6,108
7,009

3,263
3,063
3,330
3,853
3,548

1,172
1,324
1,194
1,775
2,087

4,238
3 419
4,181
4,314
5,221

3,223
3 232
5,518
6,027
7,655

1,955
1 748
2,168
2,549
2,884

914
922
1,160
1,190
1,396

10,334
10,238
10,504
11,237
12,174

17,595
18,278
19,685
22,087
23,342

8, 736
8,594
9,404
10,214
10,294

2,791
3,044
3,779
4,159
4,501

Richmond.

Atlanta.

Chicago-

St.
Louis.

329
282
373
402
316

40
134
218

481
481

238
130
270
179
178

481
325
320

302
485
279
179
57

730
634
862
962
814

211
459
461
474
520

806
325
325

806
806
806
806
801

Minne- Kansas Dallas.
apolis. City.

San
Francisco.

Total.

403

182
183
163
170
109

142
215
57
136
172

211
222
266
433
614

5,852
8,506
6,802
9,400
10,753

399
500
606
625
465

342
336
265
265
236

166
224
312
233
217

586
627
1,373
1,160
697

13,741
14,364
15,916
13,5?8
8,963

1,158
1,352
1,377
1,657
1,777

1,116
1,168
1,142
1,258
1,402

339
408
617
770
764

472
537
624
674
690

1,381
1,791
1,445
2,096
2,976

18, 663
18,456
19,143
23,497
26,64?

488
38
779
793
804

842
698
738
914
985

584
522
719
1,223
1,387

518
416
283
537
690

498
336
168
125
38

1,193
836
612
851
1,532

14,453
12,167
16,326
18,523
22,592

1,239
1,112
1,789
1,625
1,559

3,059
2,966
3,350
3,935
3,892

2,139
2,324
2,685
3,435
3,657

1,361
1,343
1,328
1,742
1,799

1,278
1,312
1,161
1,168
1,117

3,371
3,476
3,696
4,540
5,819

52,709
53,493
58,187
64,948
68,955

362

FEDERAL RESERVE BULLETIN.

JULY 1,1916.

Amounts of acceptances (in the foreign and domestic trades) bought in open market by each Federal Reserve Bank during the
calendar year 1915 and for the five months ending May, 1916.
[In thousands of dollars.]

New
Boston. York.

Acceptances m a t u r i n g -

Within 30 days:
Calendar year 1915.
January, 1916
February, 1916
March, 1916
April, 1916
May, 1916

Philadelphia.

1,246
587
909
680
23

497
48

277
741
1,000
1,382

Atlanta
(includCleve- Rich- ing
New
land. mond. Orleans
branch).

101
64
50

156

9,857

750
13
13
107
277
300

9,057
1,204
654
3,139
3,403
3,345

1,460

20,802

374
43
50
146
137
327

191

18
214
14

816
279
116
150
478
166

183
55
22
151
115

961

265

2,005

1,077

553

2,116
267
395
579
684
1,397

250

46
300

4,810
489
656
787
1,092
962

1,324
357
143
355
602
1,074

1,219
200
194
365
381
502

151
197
285
325

2,419
304
420
459
907
1,638

52,808
7,586
10,309
18,325
14,067
16,360

13,008

5,438

250

1,354

8,796

3,855

2,861

3,133

6,147

119,455

7,565
194
709
4,759
3,990
4,109

2,963
373
475
649
898
1,712

250
41
15
480
501

72
300
65
439
448
522

5,782
768
772
955
1,572
1,128

1,801
400
193
501
739
1,401

1,455
226
228
409
534
628

50

3,230
323
558
566
1,188
1,987

64,845
9,524
12,416
22,918
18,499
21,912

21,326

7,070

1,287

1,846

10,977

5,035

3,480

50

7,852

150,114

746
42
30
70
214
315

481

2,712

5,521

4,223

1,417

After 60 days, but within 3 months:
11,471 22,211
Calendar year 1915
2,681
2,686
January, 1916
3,686
4,157
February, 1916
5,913
6,978
March, 1916...
1,497
5,690
April, 1916
3,633
4,010
May,1916

5,406
151
396
2,183
2,655
2,217

45,732

14,105 25,834
2,881
3,894
3,727
5,379
6,011
8,178
1,732 6,478
3,860
5,343
55,106

245

19

41
98
235
99

32,266

50

78

1,464
43
36
1,835
335
510

Total..

49

2,980
734
1,453
1,454
1,029
2,207

66

2,377
621
313
520
765
925

28,881

61
6
125

103

2,137

Total-

50

176

215

Total acceptances bought:
Calendar year 1915
January, 1916
February, 1916
March, 1916
April, 1916
May,1916

103

227

4,095

Total-

San
Total
Franfor
cisco. system.

Dallas.

220

3,853

102

Kansas
City.

76

673

After 30 days, but within 60 days:
Calendar year 1915
•
January, 1916
February, 1916
March, 1916
April, 1916
May,1916

Minneapolis.

20

128

Total..

St.
Louis.

Chi-

421
234

44
153
126

215
219
440
721
3,819

Distribution of bills bought in open market by all the Federal Reserve Banks during the month of May, 1916, by classes of
acceptors and sizes.
To $5,000.

Over $5,000 to
$10,000.

Over $10,000 to Over $25,000 to Over $50,000 to
$50,000.
$25,000.
$100,000.

Over $100,000.

Total.
Per
cent.

II
Member banks
Trust companies
State banks
Private banks

103
164
7
22

$326,985
501,992
28,340

Total bankers 1
acceptances.
Trade acceptances.. -

296
39

926,139
86,752

Total bills
bought in
open market
Percent

335 1,012,891
4.6

107 $1,815,371
113 2,519,724
80,315
6
54 1,058,629

26 $1,014,347
1,355,096
41,011
804,559

20 $1,868,805
25 2,815,045

1112,767,980
"
830,318

1,014,567

522,501

192 1,556,484
198,740
27

280 5,474,039

486,386

106 3,215,013
47,867

5,698,417

22 4,120,799

219 1,755,224
8.0

312 5,960,425
27."

108 3,262,880
14.9

62 5,698.417

Total, 5 months
ending May,
1916
1,353 4,138,784 1,113 9,072,806 1,394 25,621,025

40615,387,063

19416,389,221

$659,010
740,698

20

156,776

100,831

26.0

348 $8,452,498
459 8,762,873
149,666
14
131 3,625,854

38.6
40.0
.7
16.5

958 120,990,891 95.8
101 2 920,576 4.2

4,221,630 1,059 21,911,467 100.0
19.3
100.0

14,660,078 4,53185,268,977

1 Of the above total, bankers' acceptances totaling $20,369,491 were based on imports and exports and $621,400 on domestic trade transactions.
2 Of the above total, trade acceptances totaling $899,584 were drawn abroad on importers in the United States and indorsed by foreign banks,
while $20,992 represents the amount of domestic trade acceptances bought in the open market during the month.




363

FEDERAL RESERVE BULLETIN.

JULY 1,1916.

Amount of short-term investments (municipal warrants) held by each of the Federal Reserve Banks at close of business on
Fridays, May 26 to June 23, 1916, distributed by maturities.
[In thousands of dollars.!

Warrants maturing—

Within 10 days:
May26..
June 2
June 9
June 16
June 23
. . .
From 11 to 30 days:
May 26 . . .
.....
June2
....
June 9
June 16
June 23
From 31 to 60 days:
May 2 6 . . . . . . . . . . . .
June 2 . . .
June 9 . . . . .
June 16
June 23
From 61 to 90 days:
May 26
June 2 . .
June 9 . .
June 16
June 23
*
From 91 days to 6 months:
May 26.. . .
. . .
June 2
r
June 9
June 16.. .
June 23
Total municipal warrants held:
May 26
June 2
...
June 9
June 16 .
June 23
. . . .

New Phila- Cleve- RichAtBoston. York.
delphia. land. mond. lanta.

1,646
243

8,460

13
50
310

230

89
270
360
310

13 495

217
31

126
318

331
126
126
151

104
1,025
1,500
1 000

1,636
1,959

San
Total
St.
Minne- Kansas
Franfor
Louis. apolis. City. Dallas. cisco.
system.

Chicago.

2,935
1,418

1,052
674

660
786

4

371

358
886

605
958
409

276

16

50

52

75

479

2 525
1,776
1,276

75
75

396
724
479
479

528

50
50
50

50
25
47
,52
275

25
50

305
54

397
18
16
708
697

25
25

138
277

330
197

29
458

50

453
37

322
503

50
49

200
173

478
98

481
481

49
49

173

118

231

169
26

1,969

206
250

31
31

318
318

31

446

21

421
153

40
60
110

2,065
2,134
2,231

224
291
270

2,051
2,197
2,378

10
10
10

309
447
472

2,272
2,272
2,232
2,219
2,169

3,058
3,116
1,919
2,049
1,898

951
991

1,646
3,416
1,442
1,514
1,378

10
10

1,004
1,018
1,108

2,289
2,089
2,091
2,282
2,372

4,245
2,816
2 676
2 670
2,620

17,100
12,378
4 658
4 627
4,726

4,079
4,015
4,204
2,787
1,881

5,677
5,897
3,991
4,517
4,587

60
60

46

60
60
60

5,802
4,285
2,928
3,262
3,402

136
787
96

111

8,996
16 409
2,527
1 050
1 394
18 292
3,346
2,540
2,268
1,479
1,988
2 022
2,002
1,593
1,266

25
68

37
37

386
361

68
68

340
338

48

63

68

88

49

63
25

68
25

63
25

194
210

25
112
87

25
36
36

25
146
162

4,774
5,627
5,966

573
573
628

506
506
556

329
329
329

558
608

591
610

293
301

1,009
1,009
1,050
1,004
1,084

12,643
14,311
11,251
11,528
11,528

1,749
1,346

2,078
2,078
1,468
1,219
1,239

1,308
1,308

2,850
2,449
1,935
1.626
1*747

44,948
36,632
23,094
22,066
21,633

752
876
941

422
422
430

3,029
550

Total investment operations of each Federal Reserve Bank during the month of May, 1916 and 1915.
[In thousands of dollars.]

Bank.

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

Bills bought in open
Bills
market.
discounted
for
mem- BankTrade
er's acceptber acceptTotal.
banks. ances. ances.
157.9
191.3
1,590.1
240.6
2,987.1
1,738.6
769.1
621.5
327.1
627.4
1,788.0
156.7

3,813.9
5,133.0
3,955.9
1,651.5
501.1
501.4
1,127.7
1,401.0
627.8
720.6
1,557.0

Municipal warrants bought.

City.

All
State. other. Total.

3,860.3 1,544.7
5,342.6 1,275.7
4,109.1
658.3
737.0
1,711.7
501.1
' *2i.*6 522.4
1,127.7 1,208.8
1,401.0 333.9
627. ~ 356.6
205.8
720.

660.2
381.7
203.5
229.2

454.0

178.3

46.4
209.6
153.2
60.2

430.2 1,987.2

152.7
178.2
101.7
101.8

Total:
May, 1916.... 11, 195.4 20,990.9 920.6 21,911.5 6,774. 8 2,187.3
2,865.0
May, 1 9 1 5 . . . . 12,145.7 2,865.0
5 months ending May 31,
», 197. 2,650.2
1916
50,847.:182,!,219.3 3,049.7 85,269.0 46,197.0
5 months ending May 31,
17,905.0
59,337.1817,',905.0
1915




United States bonds and Treasury
notes.

2 per
cent.

5.0
14.0 2,218.9
1,657.4 940.0
1.0
2.1
968.31,412.0
310.0
1.0
1,361.51,330.0
512.1
458.3 970.0
307.6 522.6
25.0
92.5
632.3
17.-1 8,979. 2 5 , 608.1
10.0
4,946.8

3 per
cent.

4 per 1-year
cent. notes. Total.

5.0
1940.0
145.0

225.5
275.0

1 Sold $1,300 of 3 per cent conversion bonds of 1946.
2 Sold $30,000 of 4 per cent bonds of 1925.
s Sold $1,100 of 3 per cent conversion bonds of 1946.

1916

1915

6,242.1
8,131.3
6,562.0
4,702.6
3,798.2
2,262.0
4,588.3
2,534.6
2,503.7
2,193.2
1,813.0
2,868.7

1,493.0
2,710.2
1,181.6
1,311.3
3,580.8
2,238.8
1,080.5
651.9
448.0
629.8
2,484.7
2,431.9

20,242.5

225.0

2 1,782.0
310.0
1.0
1,330.0

40.0
15.0

17090.5*
537.6
25.0
92.5

280.0

6,113.6 .48,199.7
285.0

150.148,997.3 33,621.1 3,187.88 4,108.0
24,552.8 5,571.751,345.0

Total investment
operations.

50.040,966.98 226,080.38
6,916.75

108,712.35

364

FEDERAL RESERVE BULLETIN".

JULY 1, 1916.

FEDERAL RESERVE BANK STATEMENTS.
Resources and liabilities of the Federal Reserve Banks and of the Federal Reserve System at close of business on Fridays, June 2
to June 23, 1916.
RESOURCES.
[In thousands of dollars.]

Boston.

New
York.

Gold coin and certificates
in vault:
June 2
6,635
139,848
6,534
152,385
June 9
6,575
156,824
June 16
156,378
6,055
June 23
Gold settlement fund:
June 2
12,307
9,374
13,266
4,718
June 9
14,216
3,678
June 16
4,055
14,430
June 23
Gold redemption fund:
5
250
June2. . .
... ..
5
250
June 9
5
250
June 16 . .
5
250
June 23
Legal-tender notes, silver,
etc.:
32
June 2
6,349
186
11,080
June 9
171
5,818
June 16 .
17
7,762
June 23
Five per cent redemption
fund against Federal
Reserve Bank notes:
June 2
June 9
. . . .
June 16
••" J u n e 2 3 . . .
Total reserve:
155,821
June 2
18,979
19,991 168,433
June 9
166,570
20,967
June 16
. .
168,445
20,507
June 23
Bills discounted—members:
185
314
June 2.
403
415
June 9
338
404
June 16
279
433
June 23
Bills bought in open
market:
10,238
18,278
June 2
10,504
19,685
June 9
11,237
22,086
June 16
12,174
23,341
June 23.
One-year Treasury notes:
250
1,532
June 2
1,532
250
June 9 .
....
1,532
250
June 16
1,532
250
June 23
United States bonds:
3,082
3,488
June 2.. .^
3 082
3,488
June 9
3,082
3,488
June 16
3,082
3,463
June 23
Municipal warrants:
2,816
12,379
June 2
4,658
2 676
June 9
4 628
2 670
June 16
2^620
4,726
June 23
Federal Reserve notes,
net:
912
13,795
June 2
13,833
799
June 9
13 984
830
June 16
13,718
965
June 23
Due from other Federal
Reserve Banks, net:
4,694
June 2
4,615
June 9
. . .
5 373
June 16
4,759
June 23
i items in transit; i. e., total




Phila- Cleve- RichAtdelphia. land. mond. lanta.

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

Total
for
system.

9,508
9,624
8,879
9,087

12,207
12,466
12,505
12,785

5,056
5,053
5,036
5,049

6,304
5,855
6,285
6,220

36,837
37,875
40,254
42,939

6,147
5,818
5,550
4,974

6,284
6,302
6,432
6,455

4,211
4,248
4,249
4,225

3,828
3,803
3,809
5,735

5,388
5,481
5,654
5,741

242,253
255,444
262,052
265,643

12,114
16,485
12 424
13,287

11,174
10,961
11,731
11,302

13,136
13,166
13 851
14,663

4,589
4,133
4,880
5,392

8,610
7,511
8,315
4,562

2,142
1,810
3,368
6,394

4,188
4,427
4,564
5,628

6,929
8,560
8,344
8,181

8,325
8,854
8 811
9,055

9,443
9,590
9 919
9,152

102,331
103,481
104 101
106,101

50
50
50
50

62
42
36
32

451
420
417
410

469
449
490
483

200
200
200
200

34
17
104
88

30
30
30
30

57
62
78
79

175
168
163
257

10
10
10
10

1,793
1,703
1,833
1,894

561

1,050
1,034
1,089
1,126

182

429

2,305
1,707
2,646
1,777

1,105
1,049
1,032
1,050

757
690
695

919

16

13,855
18,055
13,622
14,026

436
276
181

22,233 24,493
26,595 24,503
21,629 25,361
22,605 25,245

170
193
204

527
598
542

748

159

160
167
145

932
934
518

400
400
400

50
50
50

400

50

11,791
10,964
12,253
12,637

47,952
47,293
51,415
49,478

9,428
8,694
10,054
12,506

11,250
11,516
11, 716
12,808

11,356
13,030
12,838
12,630

13,247
13,757
13,717
15,565

14,857
15,098
15,591
14,912

360,232
378,683
381,608
387,664

4,716
4,867
5,202
5,384

404
416
401
426

19,895
20,156
20,427
20,750

3,476
3,696
4,540
5,819

53,492
58,187
64,948
68,953

269
274
279
270

5,176
5,310
5,313
5,257

2,799
2,751
2,792
2,774

2,208
1,993
1,808
1,921

784
732
577
571

693
750
817
876

1,709
1,793
1,907
1,944

8,594
9,404
10,214
10,294

3,044
3,779
4,159
4,501

806
806
806
800

1,112
1,789
1,626
1,559

2,968
3,350
3,935
3,892

2,324
2,685
3,435
3,657

1,342
1,328
1,742
1,799

1,312
1,161
1,168
1,117

456
456
456
456

350
350
350
350

380
380
380
380

350
350
350
350

410
410
410
410

1,684
1,684
1,684
1,684

9,752
9,753
9,753
9,753

2,959
2,959
2,959
2,959

3,378
3,427
3,512
3,512

9,678
9,678
9,828
9,853

4,285
2,928
3 262
3,401

1,346
752
876
941

2,078
1,469
1 219
1,239

1,308
422

1,635
1,695
1,729
1,700

1,077
1,119
1,228
1,220

1,901
1,965
1 909
844

3,538
3,538
3,538
3,538

6,352
6,502
6,706
6,706

1,605
1,605
1,605
1,605

4,015
4,204
2 787
1,881

5,897
3,991
4 517
4,587

60
60

135
68
402

333
308
303
327

736

450
450
450

18,825
18,809
19,497
20,326

638
452
589
615

462
462
462
462

17
8
9

60
60

1,534
1,629
1,643
1,728

450

4,190
4,190
4,190
4,190
2,866
2,866
3,111
3,111

422
430

7,026
572 1,543
1,065
3,530
1,174
2,543
1,579
751
6,998 4,237
1,102
1,063
1,379
325
2,579 2,305
4,901
946
4,771
1,618
3,800
839
817
775
520
4,514
934
6,585
1,494
1,194
848
21.2
1,870
amounts due from, less total amounts due to, other Federal Reserve Banks.

3,609
3,609
3,609
3,609

51,991
52,191
52,875
52,875

2,449
1,935
1 626
1,747

36,633
23,095
22 067
21,632

2,760
2,507
2 057
2,109

24,082
23,923
24 491
23,013

1,420
2,386
1,843
1,789

115,300
1
17,750
1
21,365
1
19,287

JULY 1,

365

FEDERAL RESERVE BULLETIN.

1916.

Resources and liabilities of the Federal Reserve Banks and of the Federal Reserve System at close of business on Fridays, June 2
to June 23, 1916—Continued.
RESOURCES—Continued.
[In thousands of dollars.]

Boston.

All other resources:
June 2
June 9

New
York.

Philadelphia.

June 16

22
35
79
92

3,622
353
395
293

38
18
39
35

June 16

41,178
42,355
44,826
44,728

209,229
212,397
213,087
215,951

43,183
44,741
44,765
44,346

June 23
Total resources:
June 2
June 9
June 23

Cleve- Richland. mond.

551
303
412
344

116
127
172
173

Sari
AtSt.
Minne- Kansas
lanta. Chicago. Louis. apolis. City. Dallas. Francisco.

1,106
1,253
1,111
1,141

709
602
169
432

398
416
382
336

120
121
139
108

470
521
466
391

76,533 21,239 22,286 28,222
74,612 21,974 22,305 28,517
77,272 23,691 22,350 28,256
77,162 24,064 22,384 29,045

41,511 28,587 21,441
42,239 29,478 21,483
42,512 29,527 22,298
43,174 29,611 22,393

1,212
1,210
1,739
904

Total
for
system.

118
207
135
138

8,482
5,166
5,538
4,387

22,842 29,093
23,075 29,854
23,819 29,802
25,226 30,549

574,747
583,791
597,887
603,201

LIABILITIES.
[In thousands of dollars.]

Boston.

Capital paid in:
June 2
June 9
June 16
June 23 .
. .. ;
Government deposits:
June 2
June 9
...
June 16 .
...
June 23
Reserve deposits, net:
June 2
June 9
June 16
June 23
Federal Reserve notes,
net liability:
June 2
June 9
June 16
June 23
Federal Reserve bank
notes in circulation:
June 2
June 9
June 16
June 23
Due to other Federal Reserve Banks, net:
June 2
June 9
June 16
. .June 23
All other liabilities:
Tune 2
Tune ifj
Tune 23
Totalliabilities:
June 2
June 9
June 16
June 23




New
York.

Philadelphia.

Cleve- Richland. mond.

Atlanta.

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

Total
for
system.

4,925
4,925
4,925
4,925

11,281
11,281
11,281
11,281

5,216
5,216
5,216
5,216

5,966
5,966
5,966
5,966

3,354
3,355
3,355
3,357

2,469
2,469
2,469
2,468

6,672
6,673
6,673
6,673

2,787
2,789
2,790
2,790

2,576
2,576
2,576
2,577

3,004
3,005
3,005
3,001

2 675
2,675
2,675
2,676

3,933
3,933
3,933
3,933

54,858
54,863
54,864
54,863

2,915
3,146
3,433
3,867

10,292
10,821
12,757
15,681

3,667
4,112
4,392
5,680

966
786
824
1,251

6,687
7,088
7,029
7,580

7,892
7,815
8,266
8,646

5,718
5,299
5,341
6,291

2,253
2,642
2,968
3,562

708
739
786
734

847
1,064
1,214
1,560

5,756
5,911
6,055
6,185

2,299
2,155
2,686
3,462

50,000
51,578
55,751
64,499

33,282
34,218
36,397
35,857

177,059
182,733
184,776'
183,557

34,300 34,579
33,733 35,487
35,150 35,722
33,438 35,957

14,406
14,734
14,899
14,593

10,966
11,079
11,444
11,161

64,143
62,640
65,258
64,198

16,199
16,543
17,933
17,712

19,002
18,990
18,988
19,073

21,904
21,950
21,560
21,999

11,721
11,907
11,973
11,914

22,861
23,766
23,183
23,154

460,422
467,780
477,283
472,613

736
768
751
762

2,690
2,582
3,071
4,451

4,086
4 243
4*181
4,015

1,731
1,730
1,726
1,723
10 597
7,562
4,273
5,432
56
66
71
79
41,178
42,355
44,826
44,728

1,731
1,730
1,726
1,723

1,677
45

3
7
12
209,229
212,397
213,087
215,951

7,512
7,593
8,003
9,228

43,183 41,511
44,741 42,239
44,765 42,512
44,346 43,174

54
58
63
66

114
120
119
118

28,587 21,441
29,478 21,483
29,527 22,298
29,611 22,393

224
247
260
275
76,533 21,239 22,286 28,222 22,842 29,093
74,612 21,974 22,305 28,517 23,075 29,854
77,272 23,691 22,350 28,256 23,819 29,802
77,162 24,064 22,384 29,045 25,226 30,549

574,747
583,791
'597,887
603,201

366

FEDERAL RESERVE BULLETIN.

JULY 1, 1916.

Circulation of Federal Reserve notes at close of business on Fridays, June 2 to June 28, 1916.
[In thousands of dollars.]

Boston.

Federal Reserve notes
issued to the bank:
June 2
June 9
June 16
June 23
Federal Reserve notes in
hands of bank:
June 2
June 9
June 16
June 23.
Federal Reserve notes in
circulation:
June 2
June 9
June 16
June 23
Gold and lawful money
deposited with or to the
credit of the Federal
Reserve Agent:
June 2
June 9
June 16
June 23
Carried to net assets:
June 2
June 9
June 16
June 23
Carried to net liabilities:
June 2
June 9
June 16
June 23

New
York.

San
St.
Minne- Kansas
Louis. apolis. City. Dallas. Francisco.

AtCleve- Richland. mond. lanta.

Chicago.

6,315 10,394 10,272 14,383
6,122 10,105 10,108 14,345
7,201 10,090 10,069 14,255
7,036
9,859 14,166

3,667
3,658
3,655
3,649

6,929
6,893
6,878
6,840

13,121
13,098
13,089
12,172

505

1,534
1,629
1,643
1,728

1,635
1,695
1,729
1,700

1,077
1,119
1,228
1,220

1,901
1,965
1,909
844

349
317
334
323

Philadelphia.

10,510
10,413
10,391
10.332

74,399
70,653
70,447
70,089

912
799
830
965

13,795
13,833
13,984
13,718

135

333

736
402

303
327

9,614
9,561
9,367

60,604
56,820
56,463
56,371

6,180
6,054
6,465
6,634

10,061
9,797
9,787
9,671

9,738
9,681
9,580
9,354

12,849
12,716
12,612
12,438

2,032
1,963
1,926
1,949

5,852
5,774
5,650
5,620

11,220
11,133
11,180
11,328

10,510
10,413
10,391
10,332

74,399
70,653
70,447
70,089

6,315
6,122
7,201
7,036

10,394
10,105
10,090

5,652
5,438
5,399
5,339

14,383
14,345
14,255
14,166

3,667
3,658
3,655
3,649

6,929
6,893
6,878
6,840

13,121
13,098
13,089
12,172

912
799
830
965

13,795
13,833
13,984
13,718

135
68
736
402

333

1,534
1,629
1,643
1,728

1,635
1,695
1,729
1,700

1,077
1,119
1,228
1,220

1,901
1,965
1,909
844

534
427

327

4,086
4,243
4,181
4,015

Total
for
system.

9,859
9,853
9,772
9,756

184,217
179,471
179,802
176,955

617
725
101
76

2,760
2,507
2,057
2,109

25.582
25,392
25,343
23,917

8,970
8,982
8,897

14,432
14,199
14,623
13,751

7,099
7,346
7,715
7,647

158,635
154,079
154,459
153,038

8,234
8,214
8,146
8,146

11,742
11,617
11,552
9,300

9,853
9,772
9,756

175,205
170,409
170,875
166,823

2,760
2,507
2,057
2,109

24,082
23,923
24,419
23,013

9,319 15,049
9,299 14,924
9,231 14,724
9,231 13,827

736
768
751
762

7,512
7,593
8,003
9,228

2,690
2,582
3,071
4,451

Statement of Federal Reserve Agents7 accounts at close of business on Fridays, June 2 to June 23, 1916.
[In thousands of dollars.]

Boston.

Federal Reserve notes:
Received from Comptroller—
June 2
June 9..
June 16
June 23
Returned to Comptroller—
June 2
June 9
June 16
June 23
Chargeable to Federal
Reserve AgentJune 2
„
June 9
' June 16
June 23
In hands of Federal
Reserve Agent—
June 2
June 9
June 16
June 23
Issued to Federal Reserve Bank, n e t June 2
June 9
June 16
June 23




New
York.

Phila- Cleve- RichAtdelphia. land. mond. lanta.

San
St.
Minne- Kansas
Chicago. Louis.
Franapolis. City. Dallas. cisco.

Total
for
system.

20,380
20,380
20,380
20,380

119,240
119,240
119,240
119,240

15,480
15,480
15,480
15,480

13,360
13,360
13,360
15,160

17,000
17,000
17,000
17,000

20,400
20,400
20,400
20,400

9,380
9,380
9,380
9,380

9,600
9,600
9,600
9,600

19,000
19,000
19,000
19,000

13,000
13,000
13,000
13,000

23,580
23,580
23,580
23,580

13,320
13,320
13,320
13,320

293,740
293,740
293,740
295,540

2,690

2,787
2,809
2,868

27,041
30,787
30,993
31,351

3,072
3,265
3,299
3,464

1.266
1,555
1,570
1,662

3,328
3,542
3,581
3,641

1,921
1,959
2,049
2,138

832
841
844
850

909
945

249
272
281
298

763

1,721
1,846
1,912
2,664

661
667
748
764

44,453
49,249
49,897
51,549

17,690
17,593
17,571
17,512

92,199
88,453
88,247
87,889

12,408
12,215
12,181
12,016

12,094
11,805
11,790
13,498

13,672
13,458
13,419
13,359

18,479
18,441
18,351
18,262

8,548
8,539
8,536
8,530

8,691
8,655
8,640
8,602

18,751 12,237 21,859
18,728 12,217 21,734
18,719 12,149 21,668
18,702 12,149 20,916

12,659
12,653
12,572
12,556

249,287
244,491
243; 843
243,991

7,180
7,180
7,180
7,180

17,800
17,800
17,800
17,800

6,093
6,093

1,700
1,700
1,700
3,500

3,400
3,350
3,350
3,500

4,096
4,096
4,096
4,096

4,881
4,881
4,881
4,881

1,762
1,762
1,762
1,762

5,630
5,630
5,630
6,530

2,918
2,918
2,918
2,918

6,810
6,810
6,944
7,089

2,800
2,800
2,800
2,800

65,070
65,020
64,041
67,036

10,510
10,413
10,391
10,332

74,399
70,653
70,447
70,089

6,315
6,122
7,201
7,036

10,394 10,272 14,383
10,105 10,108 14,345
10,090 10,069 14,255
9,859 14,166

3,667
3,658
3,655
3,649

6,929
6,893
6,878
6,840

13,121
13,098
13,089
12,172

9,319
9,299
9,231
9,231

15,049
14,924
14,724
13,827

9,853
9,772
9,756

184,217
179,471
179,802
176,955

851
851

JULY 1,

367

FEDERAL RESERVE BULLETIN.

1916.

Circulation of Federal Reserve notes at close of business on Fridays, June 2 to June 23, 1916—Continued.
[In thousands of dollars.]
Boston.

Amounts held by Federal
Reserve Agent:
In reduction of liability on outstanding
notes—
Gold coin and certificates on
hand—
June 2
June 9
June 16.
June 2 3 . . . . . .
Credit balances in
g o 1 d-redemption fundJune 2
June 9
June 16
June 23
Credit balances
with Federal
Reserve Board—
June 2
June 9
June 16
June 23 .
As security for outstanding notesCommercial paperJune 2
June 9
June 16
June 23
TotalJune 2
June 9
June 16
June 23
Memorandum:
Total amount of commercial paper delivered to Federal Reserve Agent—
Juno 2
June 9
June 16. . .
June 23




New
York.

Philadelphia.

AtCleve- Richland. mond. lanta.

9,700
9,700
9,700
9,700

73,117
65,817
65,817
65,817

3,360
3,230
3,330
3,330

9,700
9,460
9,460
9,400

810
713
691
632

1,282
4,836
4,630
4,272

355
292
461
416

694
645
630
598

2,600
2,600
3 410
3 290

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

o

2,850
2,850
2,850
2,850

10,120
10,120
10,120
10,220

4,000
4,000
4,000
4,000

9,540
9,540
9,540
8,040

74,399
70,653
70,447
70,089

6,315
6,122
7,201
7,036

122,387
114,717
114,817
113,357

452
338
299
339

933
895
805
1,166

357
348
345
339

329
393
378
340

651
628
619
602

534
514
446
446

822
797
732
630

339
333
322
406

7,558
10,732
10,358
10,186

5,200
5,100
5,100
5,000

13,450
13,450
13,450
13,000

3,310
3,310
3,310
3,310

3,750
3,650
3,650
3,650

2,350
2,350
2,350
1,350

3,700
3,700
3,700
3,700

1,380
1,280
1,280
630

9,520
9,520
9,450
9,350

45,260
44,960
45,700
43,280

1,085
1,085
1,085
1,085
9,319
9,299
9,231
9,231

3,307
3,307
3,172
4,527
15,049
14,924
14,724
13,827

1,087
1,099
1,093
1,094

4,392
4,410
4,816
4,884

4,620
4,670
4,670
4,520
10,510
10,413
10,391
10,332

Total
for
system.

10,394 10,272
10,105 10,108
10,090 10,069
9,998 9,859

5,132
5,136
4.857
4', 600

14,383
14,345
14,255
14,166

3,667
3,658
3,655
3,649

6,929
6,893
6,878
6,840

13,121
13,098
13,089
12,172

9,012
9,062
8,927
10,132
9,859
9,853
9,772
9,756

184,217
179,471
179,802
176,955

10,611
10,645
10,766
10,578

368

FEDERAL RESERVE BULLETIN.

JULY 1, 1916.

GOLD IMPORTS AND EXPORTS.
Imports of gold, by customs districts, Jan. 1 to June 23, 1916.

Week ending May 26.
28

Bullion rppiipd
Foreign coin

99
3

.

St. Lawrence.

Ohio.

Michigan.

Dakota.

Buffalo.

Washington.

Southern California.

San Francisco.

Alaska.

1

•

Ore a n d base bullion
United States m i n t or assay
office bars .
. . . .

Total

Laredo.

El Paso.

Arizona.

New Orleans.

Florida.

New York.

Maine and New
Hampshire.

[In thousands of dollars.]

.

25

1

21

98

109

13

55

350

181

3

242

130

25

24

1

351

98

3

8

3

1

53

50

181

13

55

4

31

8 731

181
9 075
3

8,731

9,609

8 068

101
8,430

8,068

8,684

14,600
4,867

245
14 970
15
4,962

19,467

20,615

Week ending June 2.
Ore and base bullion
United States mint or assay
office bars
Bullion refined
Total

2

275

<

278

8

5

48

1

13

1

53

73

70

1

58

101
26

1

108

127

4

36

12

153

31 |

Week ending June 9.
Ore and base bullion
United States mint or assay
office bars
Bullion, refined
United States coin
Foreign coin

12

97

58

3

423

245
24

346
15
95

Total

504

1

37

12

37

9

6

19

73

70

97

281

12

25

44

5

4

58

3

Week ending June 16.
Ore and base bullion
United States mint or assayoffice bars
Bullion refined
Foreign coin

149

1
1

144
10

Total

191

9

7

62

14

13

120
19

25

164

73

87

6

4

16,291
10,220

1
16,556
10,230

26,511

26,936

Week ending June 23.
Ore and base bullion
United States mint or assay
office bars
Bullion refined
Foreign coin

4

2

397
71

Total.

2

8

45

307

93

69

202
45

530

14

15

2

4

315

166

156

247

1,140

189

322

68

133

83

985

3 1,532

597

308

45

18;417
17,033

202
19,330
17,104

35, 450

36,944

Jan. 1 to June 23.
Ore and base bullion.
United States mint or assay
office bars
Bullion, refined
United States coin
Foreign coin '.
Total..




1

7,549

115

1

21,115

2

29,919

33

5
9

33

203

116

27

438

95

307 3,009
1
4,867

133

391 8,861

7

149

928

2,060
837
621
55

10 2,208 3,494

6,133

3
74,602
1 777
32,664

149

928

2,060
87,075
1,986
58,656

3 .109,043 155,910

369

FEDERAL RESERVE BULLETIN.

JULY 1,1916.

Exports of gold, by customs districts, Jan. 1 to June 23, 1916.

Total.

Vermont.

St. Lawrence.

Montana and
Idaho.

Michigan.

Duluth and Superior.

Dakota.

Buffalo.

Washington,

San Francisco.

Hawaii.
•

Alaska.

Porto Rico.

New York.

Maine and New
Hampshire.

[In thousands of dollars.]

Week ending May 26.
1

1

Ore and base bullion
United States mint or assav office bars
Bullion, refined:
Domestic
- ..
Foreign
UnitpfJ Statp5? coin
Foreign coin

1 715

1

2
1,716

5
2

10
5
4,430
60

8

6,223

10
4 258
' 59

170

Total

1

170

1

11

6 032

1

Week ending June 2.
TJnitpd Statps mint or assav office bars
United States coin
Total

17

560
1,186

8

404
390

35

17
404
993
1,186

1,746

8

794

52

2,600

1 201

1

4

1,201

1

4

Week ending June 9.
Unitprl States mint or assav office bars
Bullion refinod domestic

1

1

2
12
1,206

1

1

1,220

12

Total

12

Week ending June 16.
397

TTnitpii States TTpnt or assav offic© liars

Total

845

235

845

632

11

1

397
12
1,080

11

1

1,489

Week ending June 23.
2

Ore and base bullion
.
United States mint or assay office bars
Bullion refined domestic
United States coin
. . .
Total

2
1

1
125
2,814
1,011

1

3,953

510

168
6,898

28

97
2,805
1,009

9

3,911

9

2

•

32
.

-

•:

i

Jan. 1 to June 23.
Ore and base bullion
United States mint or assay office bars..
Bullion, refined:
Domestic

2

United States coin
Foreign coin
Total




2

87

67
69

701

2

218

1

101

15,608
63

45

19
5

12

101

21,932

134

378

13

12

758

5 560

3,436
1,438
15,887
17,825
39,344

15
15

12

1
12
1
1

3

2

15

1

19
5
1,018
1,384

8

4,397
1,443
33,456
19,281

2,936

758

65,643

370

FEDERAL RESERVE BULLETIN.

JULY 1, 1916.

EARNINGS ON INVESTMENTS OF FEDERAL RESERVE BANKS.
Average amounts of earning assets held by each Federal Reserve Bank during May, 1916, earnings from each class of earning
assets, and annual rates of earnings on the basis of May, 1916, returns.
Average balances for the month of the several classes of earning assets.
Bills rediscounted,
members.

Bills bought
in open
market.

3210,671
343,947
775,309
284,497
5,505,338
3,104,352
1,753,939

$10,604,799
17,531,379
8,035,855
2,613,246
715,442
1,160,861
3,033,386
1,957,389
1,259,387
1,282,297

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

703,000
1,729,852
4,698,926
426,000

Total...

20,183,917

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

2,961,000

2,659,000

51,155,041

42,239,312

54,959,402




Total.

*5,i44."27

$31,804.08
75,744.36
31,968.86
29,819.68
24,907.85
16,870.07
41,949.43
14,953.42
15,418.30
29,207.26
21,836.64
18,107.71

84,939.94

105,374.81

352,587.66

$6,832.89
32,713.78
7,880.17
12,027.96
155.93
1.33
10,974.85
3,042.99
3,906.77
2,259.00

72,568.55

$17,494,668
39,446,187
16,719,120
14,550,828
8,204,767
6,299,121
19,914,643
7,520,442
7,298,648
13,886,798
7,561,450
9,641,000
168,537,672

Calculated annual rate of earnings from—

$6,094.60
10,863.17
7,593.63
12,318.34
4,056.72
4,311.02
18,874.55
6,287.73
6,451.02
17,678.90
4,877.57
5,967.56

$655.67 $18,220.92
1,167.93 30,999.48
2,487.70
14,007.36
1,048.49
4,424.89
18,805.25
1,889.95
10,087.91
2,469.81
6,991.73
5,108.30
2,379.10
3,243.60
2,969.43
2,091.08
7,170.56
2,098.80
16,959.07
1,845.71 "5,"i50.*i7'
89,704.36

United
States
bonds.

$3,347,359
16,612,635
3,907,956
5,486,443
60,406
392
5,417,521
1,575,967
1,958,161
1,213,472

Total.

$3,331,839
4,958,226
4,000,000
6,166,642
1,923,581
2,033,516
9,709,797
3,339,000
3,378,100
9,661,177
2,862,524
3,595,000

Earnings from—
Bills
Bills redis- bought
in Municipal
counted, open marwarrants.
members.
ket.

United
States.
bonds.

Municipal
warrants.

Bills reBills
disbought
counted, in open
members. market.

Municipal warrants.

United
States
bonds.

All investment
operations.

Per cent. Per cent. Per cent. Per cent. Per cent.
3.67
2.03
2.41
2.16
2.15
4.00
2.08
2.32
2.54
2.26
3.78
2.05
2.38
2.24
2.25
4.35
1.99
2.59
2.39
2.44
4.03
3.12
3.05
2.49
3.59
3.84
2.51
4.00
2.50
3.16
4.69
1.98
2.39
2.29
2.48
4.33
1.96
2.28
2.22
2.35
4.99
1.96
2.35
2.26
2.49
4.89
1.93
2.20
2.16
2.49
4.26
2.00
3.41
5.10
1.99
2.23
2.28
2.05
4.24

2.07

2.37

2.26

2.47

INDEX.
Page.

Acceptances, distribution of, by sizes, maturities,
etc
361-363
Acceptances to 100 per cent
328
Amendments to Federal Reserve Act proposed by
Federal Reserve Board
.
323-327
Assessment levied for expenses of Board
318,319
Business conditions throughout the 12 Federal Reserve districts
333-354
Chart showing individual and bank deposits, taken
from calls of Comptroller
328
Clearing circulars issued by Federal Reserve Banks. 312315
Clearing house taken over by Boston bank
317
Commercial failures in May
327
Conference of Board with representatives of clearing
houses.
310
Discounts, distribution oL
,
355-360
Discount rates in effect.
319
Earnings on investments of Federal Reserve Banks. 370
Federal Reserve Act, amendments to, proposed by
Board
323-327
T ..
Federal Reserve Bank statements.
364-367
Fiduciary powers granted. .
328




Gold bullion, amendment to Act regarding deposit
of
311
Gold imports and exports
368,369
Gold settlement fund
320-322
Audit of
320
Cost of operating
315
Informal rulings of the Board
329
Law Department:
One-year gold notes.
330
Deposit of postal funds in nonmember banks .. 331
Withholding national-bank notes from circulation.
332
McCormick, Vance C, resignation of, as Class C
director
309
#
Member banks granted authority to accept up to 100
per cent.
328
National-bank charters issued by Comptroller . . . .
316
" Par " collection, meaning of
310
Resources and liabilities of Federal Reserve Banks. 364370
Strong, Benjamin, leave of absence granted t o . . . . .
315
United States bonds, conversion of
316
Work of the Board.
309,310
371

o