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FEDERAL RESERVE
BULLETIN




ISSUED BY THE

FEDERAL RESERVE BOARD
AT WASHINGTON

JULY, 1919

WASHINGTON
GOVERNMENT PRINTING OFFICE
1919

FEDERAL RESERVE BOARD.

EX OPFICIO MEMBERS.
CARTER GLASS,

Secretary of the Treasury, Chairman.
JOHN SKELTON WILLIAMS,

W. P. G. HARDING, Governor.
ALBERT STRAUSS, Vice Governor.
ADOLPH C. MILLER.
CHARLES S. HAMLIN.

Comptroller of the Currency.

J. A. BRODERICK, Secretary.

GEORGE L. HARRISON, General Counsel.

W. T. CHAPMAN, Assistant Secretary.
W. M. IMLAY, Fiscal Agent.

H. PARKER WILLIS,

M. JACOBSON, Statistician,

J. E. CRANE,




Director, Division of Analysisjind Research.
Acting Director, Division of Foreign Exchange.

OFFICERS OF FEDERAL RESERVE BANKS.
Federal Reserve Bank
of—

Chairman.

Governor.

Boston

Frederic H. Curtiss... Chas. A. Morss..

New York.

Pierre Jay

Ben]'. Strong, jr.

Philadelphia..
Cleveland

R. L. Austin
D. C. .Wills

E. P. Passmore.
E. R. Fancher..

Richmond

Caldwell H a r d y . . . . . . George J. Seay..

Atlanta
Chicago

Joseph A. McCord
Win. A. Heath

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

Wm.-McC. Martin....!
JohnH. Rich
|
Asa E. Ramsay
!
Win. F. Ramsey
\
John Perrin
j
1

M. B. Wellborn.
| J. B. McDougal.
D. C. Biggs
Theodore Wold
J. Z. Miller, jr
R. L. Van Zandt
J. U. Calkins

Deputy governor.

Cashier.

Chas. E. Spencer, j r . .
C. C. Bullen
R. IT. Treman
J. H. Case
L. F. Sailer
J. F. Curtis
|
Wm. H. Hutt, 1
jr
M. J. Fleming
Frank J. Zurlinden 1..
0. A. Peple
R. H. Broaddus
L. C. Adelson
C. R. McKay
B. G. McCloud1
0. M. Attebery
R. A. Young
C. A. Worthington l . .
Lynn P. Talley
Wm. A. Day

Assistant to governor.

C. C. Bullen.
L. II. Hendricks.

W. A. Dyer.
H. G. Davis.
Geo. EC. Keesee.
M. W. Bell.
S. B. Cramer.
J. W. White.
S. S. Cook.
J. W. Helm.2
Lynn P. Talley.
Ira Clerk.

2 Acting cashier.

MANAGERS OF BRANCHES OF FEDERAL RESERVE BANKS.
Federal Reserve Bank of—

Manager.

1 New York:
Buffalo branch.

Ray M. Gidney.

Cleveland:
Cincinnati branch
I
Pittsburgh branch

L. W. Manning.
Geo. De Camp.

i Richmond:
i
Baltimore branch
Atlanta:
New Orleans branch....
Jacksonville branch
Birmingham branch
Chicago:
Detroit branch




Morton M. Prentis.
Marcus Walker.
Geo. R. De Saussure.
A. E. Walker.
R. B. Locke.

Federal Reserve Bank of—

Manager.

St. Louis:
Louisville branch
Memphis branch
Little Rock branch

W. P. Kincheloe.
J. J. Ilenin.
A. F. Bailey.

Kansas City:
Omaha branch
Denver branch

0. T.^Eastman.
C. A.|Burkhardt.

Dallas:
El Paso branch
Houston branch

R. R. Gilbert.
Sam R. Lawder.

San Francisco:
Salt Lake City branch...
Seattle branch
Spokane branch
Portland branch

C.H.Stewart.
C. J. Shepherd.
C. A. McLean.
C. L. Lamping.

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 S2 per annum. Single copies will be sold at
20 cents. Foreign postage should be added when it will be required. Remittances
should be made to the Federal Reserve Board. Member banks desiring to have the
Bulletin supplied to their officers and directors may have it sent to not less than 10
names at a subscription price of §1 per annum.
No complete sets of the Bulletin for 1915, 1916, or 1917 are available.
in

TABLE OF CONTENTS.
Pago.

Review of the month
*
Business and financial conditions during June
Special reports 'by Federal reserve agents
•.
Housing and living conditions in New York City
Effect of the war upon this country's real wealth
Report of committee of experts relative to branches of American concerns in foreign countries
Condition of Buenos Aires banks
Licenses granted by the Federal Reserve Board covering exports of coin, bullion, and currency
Operations of the Netherlands Bank and the Java Bank during the war
Foreign exchange quotations at Amsterdam
Comparative statement of condition of leading banks of issue
State banks and trust companies admitted to the system during the month
Banks granted authority to accept up to 100 per cent of capital and surplus
Charters issued to national banks during the month
Commercial failures reported
Fiduciary powers granted to national banks
Rulings of the Federal Reserve Board
*
Law department
Amendments to State banking laws
Bank transactions during May-June
.fi
Wholesale prices in the United States
Discount and interest rates prevailing in various centers
Physical volume of trade
Discount and open-market operations of the Federal reserve banks
Resources and liabilities of the Federal reserve banks
Federal reserve note account of Federal reserve banks and agents
Condition of selected member banks
Imports and exports of gold and silver
Operation of the Federal reserve clearing system
Estimated stock of money in the United States
Discount rates in effect
IV




611
620
624
632
635
637
639
640
641
646
648
649
650
650
650
650
652
554
658
661
664
667
670
680
686
690
692
696
697
698
698

FEDERAL RESERVE

No. 7

JULY 1, 1919.

VOL. 5
REVIEW OF THE MONTH.

Important beginnings have been made during the month in the direction of a more
normal condition in the foreign commercial
relations of the United States. The Federal
Reserve Board has announced the lifting of the
embargo upon gold and the practical elimination of restrictions upon foreign exchange.
The development of plans for the financing of
European needs for goods, or such part of them
as may be deemed essential, has been undertaken, and important conferences looking to
that end have been held. The plans upon
which the nation as a whole is to work in
financing trade and the extent to which it is
desired that that trade shall be supported are
yet to be determined, but the principles upon
which plans must be based have been laid
down. It will now be necessary to apply
sound and effective judgment in connection
with the choice of business and in relation to
doubtful or uncertain elements in the proposed
operations.
With the determination on the part of the
Government Government that it will not
versus private continue the large participafinaneing.
t i o n i n o x p o r t t r a d e financing
undertaken during the war, but will leave this
field to be developed by private enterprise,
our export operations will henceforward call
for the assumption of full responsibility
on the part of financiers and business men
who must recognize that the war period in
our foreign business has ended. The war
period in exportation comes to a close when
Government support of foreign trade is re-




BULLETIN

moved and when business is left to maintain
itself upon its own basis. That such should be
the course of development from now on has
for some time past been the view of the financial authorities of the Government—a view in
which the Federal Reserve Board freely concurs, as indicated by the decision reached at
the conferences held during the past month.
The view of the Board is that the matter of
providing long-term advances for Europe
presents an investment rather than a banking
problem; that the necessary, funds must therefore come from the investment market. The
question how to obtain these funds through an
appeal to investors is, therefore, the immediate
and practical problem of the moment in connection with the financing of the business.
Methods for making such an appeal have been
outlined during the month by bankers of prominence and include the plan of distributing as
widely as possible the obligations of a corporation formed for the express purpose of financing the trade. The working or technique of
the operation is now a matter for the immediate
future and one in which the banking community
is directly and predominantly concerned. This
is especially true in view of the general recognition of the fact that the development of this
plan is essentially a matter for private capital
and for the assumption of private responsibility.
An essential element in several of these plans
looks to the establishment of
tionsP°rt COrP ° ra " individual corporations, designed to cooperate in financing
the sale to Europe on long-term credit of the
several staple products of the country, such as
cotton, wheat, copper, and the like, each of
611

612

FEDERAL RESERVE BULLETIN.

which corporations would in turn subscribe to
the capital stock of a central organization to
which they could resort for assistance whenever
their individual financial capital had become
exhausted in facilitating the movement of their
respective products. Such a central organization would obtain funds through the issue and
sale of its own securities, and its problem would
consist in finding buyers who would take, and
more or less permanently hold, the issues. In
floating these issues, it has been recognized by
the Board that difficulty will necessarily be encountered with respect to interesting the public
in the securities. It has, therefore, been decided to recommend to Congress the addition of
a new paragraph in section 25 of the Federal
Reserve Act designed to permit national banks,
until January 1, 1921, to invest not exceeding
in the aggregate 5 per cent of their capital and
surplus in the stock of one or more corporations
principally engaged in such phases of international or foreign financial operations as may
be necessary to facilitate the export of goods
from the United States. The purpose of this
provision is not that of obtaining from the
banks actual funds for operations, or to cover
lisks, like those which are now contemplated,
but rather that of permitting banks to set the
example and to show concern for the success of
the new enterprises by actually becoming
stockholders therein. It is believed that such
an example on the part of banks will be likely
to stimulate like action among their customers,
with the result that the subscriptions to the
proposed debentures or obligations will be
much more liberal than could otherwise be expected. In the last anatysis the success and
soundness of the proposed plan are dependent
upon the degree to which the public stands
ready really to take up, pay for, and hold such
obligations, or, in other words, to resign the use
of its purchasing power which might otherwise
be devoted to the consumption of commodities,
permitting exporters therefore to control a
corresponding amount of goods for shipment
abroad.




JULY 1,

1919.

While the working out and application of
financing the plans which are
Scope of export
C£ jj e( j fQT m c o n n e c tion with
trade.
our export business is thus a
matter to be disposed of by bankers and business men at their own risk, under such terms
and conditions as are desired through negotiations with foreign buyers and consumers, the
volume and direction of our export trade is
essentially a question in which the American
consumer, as well as the local producer and distributor, is vitally interested. As domestic
business has resumed its activity and vitality, it
has become more and more apparent that the
supply of commodities available to the home
consumer is becoming relatively reduced as
compared with the demand for them. Already
a tendency to advances in price is obvious, and it
is clear that in some cases what is exported will
constitute a deduction from the total needed
supply, which will leave the buyer with inadequate means of meeting his requirements.
Excessive shipments of goods therefore signify,
even when buyers abroad are solvent and able
to repay the advances thus made to them at
some reasonable date in the future, a deduction
from home consumption, which will leave the
consumer in the United States in a less favorable position than he would otherwise have
been. The value of our present excess of
exports, announced as $277,000,000 for May,
is still the outgrowth of war conditions and the
abnormal situation which has succeeded them.
How far this great export balance is advantageous to the United States is the economic
question underlying the export financing problem. That problem will essentially be one of
apportionment, selection, and differentiation.
There is a distinction between necessary
demands originating abroad for which provision needs to be made and doubtful and questionable purchases which may not, or should
not, be provided for, since in supplying them
what is shipped to European buyers is obviously withdrawn from domestic consumption.
Sharp distinction exists between those basic

JULY 1,1919.

FEDERAL RESERVE BULLETIN.

materials and supplies of which long before the
war we normally produced an exportable surplus, and which are thus habitually produced
in excess of domestic requirements, and those
specialties and supplies whose production has
been artificially stimulated during the war
period. The two classes of goods are in quite
different positions, since articles of the one
class constitute our normal contribution to the
needs of foreign consumers, while those of
the second are needed at home, and can be
produced by foreigners to meet their own
requirements.
Various estimates have been made of the
How far can the annual savings balances of the
country finance United States prior to the
exports?
European war. Such estimates
were an attempt to ascertain the amount over
and above consumption which might be carried
to investment account, and which represented
goods not needed in meeting current consumption requirements. During the war the restrictions upon consumption, coupled with the
general inculcation of thrift, probably resulted
in a material increase in saving. I t has been
estimated by the War Industries Board and
others that a growth of 16 per cent to 18 per
cent in the physical output of commodities
took place, and of the total product of the
country as thus increased, it is likely that a
larger percentage was saved by those who
came into possession of the goods. The savings of the Nation as stated in dollars are today very greatly in excess of prewar savings,
but this excess is primarily due to the great
change in prices which has raised the current
cost of commodities to about 200 per cent of
their former figure. There has, too, since the
war, been an undoubted relaxation in thrift
and the exercise of the saving spirit, while
manufacturing has not maintained the high
level of output which was reached at the peak
of war production. We may therefore reasonably doubt whether current savings as measured in terms of goods are materially larger
than those which existed before the war. On
the other hand, current capital requirements
are unprecedented^ great, many industries




613

striving to make up for relative loss of development which occurred in consequence of the
restrictions imposed during the war period
upon new issues of securities and advances of
capital. Bearing in mind that the Government has already during the present calendar
year arranged to take from consumers something like $4,500,000,000 through the sale of
Victory notes, and about $3,000,000,000 as the
product of excess, or war, taxation, a total
which, when reduced to the price basis of 1913,
would be equivalent to at least $3,750,000,000,
it is evident that the savings balance now
available for export financing can not be large.
The renewed exercise of individual thrift will
be the only means of enlarging the basis of
this export financing. Out of this must come
provision for the additional requirements of
the Government and for meeting the domestic
needs already referred to. Any attempt to
finance our exports in excess of our available
savings can only result in raising domestic
prices still further. Our great food crops will
help in increasing the amount of exportable
goods which can be shipped abroad without
causing scarcity at home, but this will not influence the situation as regards other commodities.
The export situation is possibly of most direct importance to the domestic
Prices and exconsumer in a way that is very
ports.
frequently overlooked. This is
in connection with prices. There is a shortage
of many essential materials and commodities in
the world at large. Increased credit demand for
goods for export necessarily implies relatively
decreased supply of goods for domestic use.
Demand and supply are automatically equalized by changes in price, but such changes in
price are, in the circumstances here under consideration, necessarily upward. The domestic
consumer, therefore, when asked to finance export trade, should remember that the outstanding effect of such financing upon too great
a scale would necessarily be the exaggeration oi
the prices which he himself must pay for the
things he needs. This necessarily means,
therefore, that he is in a sense bidding agains!

614

FEDERAL RESERVE BULLETIN.

himself when he enables others to purchase
overfreely with the funds which he has supplied. If a large export financing process is
conducted by banks out of credit, the result is
to place the fluid credit of the country at the
disposal of foreigners in purchasing and settling for domestic products which they obtain
from American producers. The situation is
quite different in its effects from that which
exists when domestic investors take up and
pay for the commodities by actually turning
over saved funds and withdrawing their own
demand from the merchandise field. In this
connection it is worth while to recall what is
meant by inflation. Inflation has been defined
by the Board as the process of making additions to credits not based upon a commensurate
increase in the production of goods; in other
words, not offset by genuine savings, this process resulting in an increased tendency toward
the bidding up of prices. It is in order to avoid
a recurrence of this menace in the form of an
undue exportation of goods not purchased by a
corresponding amount of savings that the
Board has urged that the basis of export credit
be found in the investment market and not at
the banks. There is the same necessary opposition of interest between the domestic and
export trade in such circumstances as that
which existed between the needs of the Government and those of private individuals during
the war; and there is the same argument in
favor of the exercise of thrift by domestic
buyers in order that they may provide the
saved funds necessary to finance the movement of goods abroad that there was in connection with the purchase of Government obligations. It is for this reason that the amount
of export trade securities to be purchased and
held by banks must necessarily be limited to
a minimum figure, in order that there may be
no danger of unduly increasing the total
amount of such obligations which find a place
in the portfolios of banking establishments,
and which to that extent tend to create the
kind of inflation that results from the purchase
and carrying an undue amount of long-term




JULY 1, 1919.-

obligations by institutions which are engaged
in providing purchasing power for current uses.
The abnormal conditions which exist at the
present time in connection with
B a l a n c e of our export commerce are the
trade.
reverse of those which ordinarily prevail when trade with other portions
of the world is substantially equal, and when
the "balance" that may be found upon one
side or the other of the account is small relatively to the total volume of the business.
Under the latter conditions, goods are imported
in somewhat the same proportion as they are
exported, or in other words, the domestic
market obtains a quantity of goods of about
the same worth and volume that it has released. The relation between goods and purchasing power is thus kept substantially stable,
and the financing of export trade has exactly
the same effect as the financing of domestic
business—if based upon actual consumable
commodities which are regularly sold and consumed, it does not tend to change the normal
price level. No "export problem" can then
exist. The situation to-day is entirely different
since we have at present relatively little importation into the United States to offset the great
volume of goods which we are expected to ship
abroad. Indeed, our trade with some of the
European countries is almost wholly one sided.
In the circumstances existing to-day, an extension of credit for the purpose of purchasing
goods for export is to all intents and purposes
a loan of capital, and has an effect very similar
to the latter. The goods we are shipping
abroad might have been used at home in productive enterprises, but instead they are
parted with, presumably for productive purposes in other countries. This is a transfer of
the country's capital in the real sense of the
term. This entirely changes the financial
aspects of the case, and necessitates a careful
study of the conditions under which credit is to
be extended or capital loaned abroad, as well as
consideration, from the public standpoint, of
the extent and degree to which it is desirable
on economic grounds that American citizens

FEDERAL RESERVE BULLETIN.

JULY 1,1919.

should provide the funds that are necessary
for the continuance of this unprecedented
and enormous movement of goods out of
the country. The idea of a balance of trade
in which the surplus of exportation is paid for
in money and is regarded as beneficial to the
people of the country which obtains such payment disappears when the result of a continuation of such trade is obviously that of
impairing or destroying the ability of the consumer at home to provide for his own needs.
Trade with foreign countries which results in
the actual shipment of goods to the United
States, however, adds to the available supply
of consumable commodities and so tends to
ease and improve the consumer's position.
It is not, however, desirable to exaggerate the
difficulty of the problem inSelecting sound v o l y e d ^ s o u n d and safe financbusiness.

ing oi our present export
trade. Stated in round numbers and over
periods of a year, the problem appears serious.
As a matter of fact, some part of the export
demand is likely to disappear as soon as actual
commercial security is required for the protection of shipments. There is a substantial part
of the trade which will provide its own liquidation if loans are wisely placed abroad. Some
commodities will be enabled to move by the use
of the advances which are supplied to foreign
borrowers, while in other cases the loans will
permit the completion of manufacturing operations which are as yet incomplete, and in which
there are in considerable volume goods still
remaining " tied up." Wise financing will thus
in many cases serve to furnish its own means of
settlement. It is quite probable, also, that as
European countries succeed in reestablishing
themselves, their recovery toward a selfsupporting basis will be much more rapid than
has been expected. Far more time is required
for the expenditure of great sums in the purchase of goods than is generally comprehended.
The war, with its tremendous drains upon the
wealth of the world, is now over, and expenditures to be made for peace purposes or for re-




123722—19

2

615

construction will require care and patience if
they are to yield returns under competitive
business conditions. They can not be overhas tily made, and this will in itself ease the
urgency of the pressure for export financing.
When all these elements have been eliminated
there will remain a very great residue of urgent
industrial requirements abroad, and these it is
both economically and otherwise sound and
desirable to finance as promptly and effectively
as possible, in order that foreign demand for
our goods may be maintained, our markets conserved, and our general position in world trade
protected.
The whole question of foreign trade financing
is, moreover, intimately assoe r m i a t i o n of c i a t e d
£
?
with that of restoration
gold embargo.
.
of sound banking and currency
conditions in international trade. Recognizing this fact, the Board has long been desirous
of restoring, so far as it has the power, the free
traffic in gold between nations. The first step
in this direction was obviously that of providing for the unrestricted movement of gold out
of the United States.
In a statement issued to the press on June 9
the Federal Reserve Board accordingly announced that the control heretofore exercised
over transactions in foreign exchange and over
the exportation of coin, bullion, and currency
would be terminated. The only exception
made was in connection with the importation
and exportation of ruble notes, or exchange
operations with that part of Russia under control of the Bolshevik government, as well as
with reference to exchange transactions with
territories where operations of the kind are now
permitted only through the American Relief
Administration. Further action completing
the order of June 10 was taken on June 30,
when the requirement of applications and
licenses for the exportation of coin and bullion
was removed. Thus is brought to an end a
system of control over the movement of gold
and silver which was originally put into operation on September 7, 1917, and which there-

616

FEDERAL, KESERVE BULLETIN.

fore has been in existence for practically 21
months. Control over foreign exchange transactions, which is now likewise practically terminated, is of briefer duration, having been
introduced on January 26, 1918, and having
therefore been in operation less than 18
months. As will be seen elsewhere in the present issue of the BULLETIN, the gold embargo
has resulted in the issuance by the Board of
approximately 1,142 licenses for the shipment
of $152,326,976 of gold, about 1,500 licenses
covering $502,756,003 of silver, and about
1,817 licenses covering $208,170,700 of currency other than United States gold and silver
certificates. Some 755 applications of all
classes were declined. The net movement of
gold and silver into and out of the country
since approximately the beginning of the gold
embargo is represented in the following table:
Gold and silver imported into and exported from the United
States during the period Sept. 1, 1917, to May 31, 1919.
Gold.

Silver.

IImports.

Exports,

Imports. | Exports.

Scpt.lto.Dec.31,1917 §28,293,467 $54,247,766 §26,086.695
Jan. 1 to Dec. 31,1918. 62,042,748 41,069,818 71,275,699
Jan. 1 to May 51,1919. 24,310,573 14,035,672 35,510,854
Total

114,646,788 109,353,256 132,973,248

$32,362,293
252,846,464
129,497,080
414,705,837

Excess of gold imports over exports since Sept. 1,1917, 85,293,532.
Excess of silver exports over imports since Sept. 1,1917, -5281,732,589.

On the whole, therefore, the effect of the
embargo may be said to have been that of
holding practically intact the net national gold
reserve—this, at least, so far as the figures indicate the surface effects. On the other hand,
there is a large field for inquiry as to the effect
of the embargo, taken by itself, in changing
the actual available bank reserve supply of
both gold and silver. Whatever these effects
may have been, they were necessarily more or
less offset by other influences which were set at
work, chief among them the effort to draw
into the banks the floating gold supply actually in circulation and in the pockets of the
people.




JULY 1, 1919.

The purposes of the establishment of the gold
embargo may be said to have
urpo s of t h e b e e n
„w
f
twofold—that of conservgold embargo.
ing the available gold supply of
the country and that of preventing enemies or
those associated with them from obtaining
access to and deriving benefit from the use of
such gold. Control over foreign exchange
operations was a natural adjunct to control
over the movements of specie, its purpose being
that of preventing enemies or those associated
with them from obtaining the benefit of banking credits created in the United States or from
using the banking machinery of the United
States to transfer and render available such
credits. In all these particulars the operation
of the embargo has been successful. The
Board, after being vested with the duty of administering the embargo, has carried it on
in the endeavor to make it as effective as possible and at the same time to insure the working
of the new system with as little public inconvenience as might be. Working toward much
the same result as the embargo was the policy
of drawing into the banks the floating suppty
of gold, and this was accomplished by substituting Federal Reserve notes for outstanding
gold certificates and by discouraging the use of
gold as a circulating medium. The latter element in the plan, indeed the whole undertaking,
could not have been successfully carried out
without the very general cooperation of the
banks and of the community in general in protecting the gold supply from being drawn off
or unnecessarily continued in popular use. Even
as it was, about $300,000,000 of hoarded money
which had been laid away by the population
during the continuance of active hostilities was
returned to the banks subsequent to the armistice. Of this money a very considerable portion appears to have been gold. The total
amount thus hoarded, however, is small as
compared with the gross amount in the banks
or formerly in circulation. Not only was there
no withdrawal of gold from the country, therefore, but the withdrawal of it into private

FEDERAL RESERVE BULLETIN.

JULY 1,1919.

hoards occurred only in inconsiderable degree.
The success of this undertaking was increased
beyond question by reason of the fact that
foreign countries were working along substantially the same lines, so that in practice those
parts of the world with which progress was
likely to prove difficult were chiefly the neutral
nations which would ordinarily or normally
have been in position to draw gold from the
United States. Such nations included a portion of the Orient, several South American
States, and, under very special conditions,
Mexico, as well as Spain and some of the northern European neutrals.
The action of the United States makes it the
first of the belligerent countries
Position of other t o r e t u r n to the free movement
countries.

oi gold, rending further action by foreign governments, the United
States therefore stands to-day as practically
the only free-gold market in the world, those
neutral nations where no embargo exists being
too small in the scope of their transactions
or too limited in the operation of their banking machinery to afford any genuine or welldeveloped world discount or gold market.
Relations between the United States and other
countries are therefore necessarily on a one-sided
basis. This one-sided condition is rendered the
more peculiar and difficult by reason of the tremendous merchandise balance of trade which has
been gradually developed. That merchandise
balance for the past three calendar years may be
stated in round numbers at about $9,500,000,000,
and bids fair to run at something like the same
rate for the current year. In the following
table are set forth the figures showing the
movement of goods between the United States
and the rest of the world and the net balance
thereof during the gold embargo period.
Merchandise imported into and exported from the United
States during the period Sept. 1, 1917, to May 31, 1919.
Imports.

Exports.

Excess of
exports over
imports.

Sept. 1 to Dec. 31,1917....: $905.870,350 $2.084,070,750 SI,178,200,400
Jan. 1 to Dec. 31, 1918
! 3,031,304,721 6,149,392,647 3,118,087,926
Jan. 1 to May 31,1919
i 1,317,677,449 3 136,799,301 1,819,121,852
Total




I 5,254,852,520 |ll,370,2

6,115,410,178

617

What is thus made evident is that although
the United States has become possessed of the
greatest single stock of gold in history, it is
now the claimant of the greatest favorable
merchandise balance ever developed. This
balance may be liquidated in any one of many
ways, but in the absence of any other liquidation it would of course have to be paid in gold
or remain as an open banking or book credit—
that is to say, as a potential claim to gold. In
these circumstances it is clear that the United
States, while it may lose gold under the new
regime to any one of a number of countries
with respect to which its balance may be temporarily unfavorable, or to which for other
reasons a small movement of gold would
naturally set in, it can not lose gold in any
considerable amounts relatively to its entire
business, while such adverse movements as may
occur in trade-isolated countries will tend to
correct themselves. The United States, in
other words, stands to-day as an almost irresistibly strong claimant of gold, and, but for
the interferences with gold movements existing
abroad, could theoretically draw to itself most
of the remaining free gold in the world.
During the month of June speculation has
continued on a high level, alti«">gh * h a s b e e n s u b J e c t t 0
many fluctuations. On June 16
call money reached 15 per cent in New York,
and on June 10 the Board sent a letter to all
Federal Reserve agents asking for information
concerning the purposes for which funds obtained by rediscounting were being used by
member banks. This letter was made public
and one effect of it was apparently that of leading some banks to hesitate about making applications for rediscounts where the funds were
unquestionably intended for purely speculative
purposes. After the middle of June the volume
of speculation on the New York Stock Exchange
was reduced from one-fourth to one-third for
some days, and this lessening of the demand for
money naturally lowered the intensity of the
demand for funds which had previously made
itself felt. The extremely high level of prices
for stocks, and for staple commodities for

618 -

FEDERAL RESERVE BULLETIN.

which there exists a speculative market,
which had been developed in New York and
elsewhere, and the fact that speculation has
spread widely throughout the country, has
undoubtedly had a considerable effect in
drawing heavily upon the available liquid resources of banks, which at best were none too
abundant prior to the time when the speculative fever became well marked. It is well to
reiterate the fact that the funds of the Federal
Reserve system are in no sense intended for the
support of speculation and that member banks
should bear this in mind when arranging for the
extension of accommodation to borrowers.
During the latter part of May and the first
two weeks of June loans of the
bankingP
b a n k s in t h e lar e centers s h o w
sit£n!
°"
S
a continuous increase in answer
to speculative demands of the money and commodity markets and as a result of the accommodation extended in connection with tax payments due about the middle of June. The
Treasury was able to ease the financial situation in a large measure by redeeming two series
of certificates issued in anticipation of the
Victory loan, due on June 3 and 17, also by
taking up on June 16 and 17 two series of tax
certificates amounting to about $730,000,000.
This enabled the member banks to reduce
somewhat their loan accounts with the Federal
Reserve Banks, with the result that the amount
of war paper held by the latter declined from1,762.5 millions on May 23 to 1,621.9 millions
on June 20, while the total of discounts on
hand declined from 1,938.8 to 1,837.4 millions.
During the four weeks under review the Federal
Reserve Banks increased their holdings of
acceptances by 81.5 millions, the amount on
hand on June 20 being 274.7 millions, while
their total earning assets decreased by 17.5
millions, and on June 20 stood at 2,341.5
millions.
On June 6 the aggregate gold holdings of the
Federal Reserve Banks had reached the record
total of 2,201.8 millions. Since then, following
the removal of the gold embargo, they decreased 36.1 millions. Net deposits followed
about the same course as discounts, and by




JULY 1, 1919.

June 20 had declined to 1,771.3 millions.
Federal Reserve notes in circulation likewise
show a substantial decline, the June 20 total
of 2,488.3 millions being about 16 millions less
than the total reported four weeks earlier.
Reductions in deposit and note liabilities
more than outweigh the decrease in reserves.
Accordingly, the banks7 reserve ratio, after a
decline to 51.8 per cent on May 29, rose to
52.5 on June 20, a slight increase over the percentage shown four weeks before.
During the month ending June 10 the net
inward movement of gold was
0 8
andixp'orts! " *19,149,000, as compared with
a net inward movement of
$2,144,000 for the month ending May 10.
The gain in the country's stock of gold since
August 1, 1914, was $1,101,019,000 as may be
seen from the following exhibit:
[In thousands of dollars; i. c , 000 omitted.]

Imports.

Excess
Exports. of imports
over exports.
181,719
420,529
529,952
181,542
21,102
29,613
1,101,019

23,253
451,955
685,745
553,713
61,950
44,002

Total
1

104,972
31,426
155,793
372,171
40,848
14,389

1,820,618 j 719,599

Aug. 1 to Dec. 31,1914
Jan. ltol)ec.31,1915
Jan. 1 to Dee. 31,1916
Jan. 1 to Doc. 31,1017
Jan. 1 to Dec. 31,1918
Jan. 1 to June 10, 1919

Excess of exports over imports.

Of the total gold imports for the month,
amounting to $20,408,000, $19,347,000 came
from Canada, the remainder coming largely
from Mexico and Dutch East Indies. Gold
exports, amounting to $1,259,000, were consigned chiefly to Peru, Mexico, and Venezuela.
The Federal Reserve Board on June 19 held
^ an important conference, whose
Conferences of

month

-. .

,

-,

-. =
-

substance has already been explained, with members of the
Federal Advisory Council. The subject under
discussion was the question of export financing
and the proper attitude to be adopted with
respect to shipments of goods abroad. At this
conference were present the executive committee of the Federal Advisory Council (Mr. James
B. Forgan, Mr. L. L. Rue, Mr. Daniel G. Wing,

JULY 1,1919.

FEDERAL, RESERVE BULLETIN,

and Mr. W. S. Rowe). A conference was also
held on June 18 with representatives of corporations engaged in foreign banking, the purpose
being to harmonize and unify, so far as practicable, the regulations of the Board for the
governance of such concerns, as well as to explain more clearly to the representatives of the
different enterprises the conditions under which
business is to be done at the present time,
according to the Board's regulations. The
Board believes there is need for a better understanding of the business of American corpora-,
tions engaged principally in foreign banking
business, and the conditions under which such
corporations must function, in order that it
may get better light on the extent to which it
would be possible to make uniform the agreements executed by such corporations with the
Board in order to make their stock eligible for
investment by national banks. It was the
chief purpose of the conference to determine
whether or not it is necessary or desirable to
make further modifications in the existing
agreements with foreign banking corporations;




619

and a generally unanimous agreement was
developed.
The appointment of the following directors
of the Houston branch of the
Houston branch
Federal Reserve Bank of Dallas
bank.
was announced on June 5: Mr.
Sam R. Lawder, Mr. J. A. Pondrom, Mr. Frank
Andrews, Mr. J. C. Chidsey, Mr. J. J. Davis.
The first three gentlemen have been appointed
by the board of directors of the Federal Reserve
Bank of Dallas, while the last two are the appointees of the Federal Reserve Board. Mr.
Lawder has been the manager of the El Paso
branch of the Federal Reserve Bank of Dallas
and will serve in a similar capacity at the
Houston branch. Mr. Pondrom is first vice
president of the South Texas Commercial National Bank, Houston, Tex. Mr. Andrews is a
director of the Union National Bank of Houston.
Mr. Chidsey is vice president of the Houston
National Exchange Bank, and Mr. Davis is
president of the South Texas State Bank,
Galveston, Tex.

620

FEDERAL RESERVE BULLETIN.

JULY 1,

1919.

BUSINESS AND FINANCIAL CONDITIONS DURING JUNE, 1919.
Increasing confidence in the continuation of
business activity and an expansion of industry
along many lines have been the characteristic
features of the month of June. This condition
has been reflected in the speculation which has
been reported from several districts, with some
indication latterly of danger that it would develop to excess. Underlying business conditions have nevertheless shown strong and
steady development. In nearly all of the districts the opinion is entertained that the prospects for a successful and prosperous year, with
very large output of goods and almost unprecedented financial returns both to manufacturers, agriculturists, and laborers, are now
positive. The possibility that speculation may
be carried too far and may exert an injurious
influence, aided and furthered by the existence of free credit and speculative tendencies,
appears as the principal offsetting influence in
the situation.
General conditions in district No. 1 are based
upon '' consensus of opinion that business conditions will remain good for a considerable
time to come." Buyers are increasingly "ready
to enter into future commitments/7 but "speculation has become popular/' and various
doubtful securities are being offered to the
public. In district No. 2 ' f the inclination to
buy has not abated * * * dealers have
been obliged to increase their demand on
manufacturers and producers, with the
result that many industries report maximum
activity. The export demand has supplemented domestic requirements."
In district No. 3 there has been no change
"in the favorable business conditions and the
optimistic outlook" noted during the preceding month, but prices have continued to advance, and there is a great latent demand for
"nearly all kinds of goods." From district
No. 4 it is reported that the wide distribution
of orders for commodities is giving a "healthy
color to business," and a "firmer feeling of
confidence prevails than has been evidenced




in any of our previous reviews." District
No. 5 reports "a continuously rapid improvement in business, the volume moving
apparently being limited only by the supply
of raw material." In district No. 6 business
conditions "in all parts of the district are reported satisfactory," and demand has appreciably increased during the past few weeks.
In district No. 7 it appears that wheat is "in
fine condition," general crop conditions good,
land values high, selling conditions and collections good, and the principal danger seen in a
development of speculation. In district No. 8
there is "great activity in retail trade, undiminished prospect of an excellent crop
yield * * * likelihood that the over supply of labor will soon be converted into an
actual shortage." District No. 9 reports that
damage to crops has been averted and that
labor, agriculture, and general business have
good prospects. In district No. 10 "a high
tide of general business and industrial activity
is shown in reports from all sections of the
district." These reports uniformly agree that
"there is increased confidence and more satisfactory progress in practically every line of trade."
In district No. 11 "early predictions of good
crops and business conditions have fully materialized, and there is no hesitancy in the
trade." In district No. 12 "industry is active,
trade and collections good, and .agricultural
prospects encouraging." Practically throughout the country the labor situation is reported
improving and wages high, and if anything a
scarcity of men for actual productive work.
Prices have continued to rise throughout
the month, both in this country and England,
and are fast making up the setback which
occurred after the signing of the armistice,
when a slight reduction in prices over the
high levels of the war period took place.
The enormously heavy demand for goods for
export has rendered products in many lines
scarce, or has even put them out of reach.
In nearly all districts it is reported that

JULY 1,1919.

FEDERAL RESERVE BULLETIN.

the conclusion has been arrived at by business men that they can rely upon heavy
demand and continuously sustained prices for
some time to come, while a feeling of apprehension which had been entertained early in
the year is disappearing, and jobbers and retailers are readily entering into commitments
for the fall and winter, very large orders in
many cases being placed. In one district it is
reported that, contrary to expectations, there
has been little or no reduction in prices; in
fact, in many directions there has been a stiffening in prices, and there is a general disposition to accept present levels and expect a
continuation of them. During May the upward movement of wholesale prices noted in
March and April has continued, the general
index number of the Bureau of Labor Statistics
now standing at 206, the same figures as for
November and December, 1918. The increase
has been general, being exhibited by each of
the groups of commodities for which index
numbers are calculated. The index number
for the group of consumers' goods has increased
from 211 to 215, for the group of producers'
goods from 186 to 189, and for the group of
raw materials from 200 to 203, the increase
in the last-named group being due largely
to the increase in the prices of farm products,
the index number for which subgroup has
increased from 243 to 244.
In many respects the agricultural prospects
of the early spring are being more than justified. The figures given out by the Government, which promised an enormous yield, have
naturally declined somewhat as the season has
advanced, suchbeing always the tendency as the
crop approaches maturity, but the figures are
well above the 10-year average, both for winter
and spring wheat. Grain in Montana and
western North Dakota escaped danger early in
the month through timely rains, and the prospects in Montana and other parts of the Northwest are favorable, the South Dakota outlook
"is excellent" and "in practically all of North
Dakota very good." In Minnesota and Wisconsin prospects are for a big crop. In district No. 7 "the winter wheat crop is coming




621

to the harvest in fine condition" and corn is
looking fairly well. Tobacco and corn have
been freely planted, and hold out an excellent
prospect. In district No. 6 corn is in large
acreage and showing splendid growth, while
cotton was in fair condition before the recent
rains. In Texas the cotton crop has suffered
somewhat from heavy rains, but corn is in an
unusually favorable position and other crop
prospects are satisfactory. On the Pacific
coast the grain harvest has commenced, and it
is believed that the year's output will be the
largest in some States ever produced and in
California the largest since 1907. No impoi*
tant developments have occurred in the flour
market. Live-stock continues high in price,
with receipts of cattle at 15 of the primary
markets about stable, being 1,255,379 during
April and 1,262,065 during May, the index
number for each month being 125. Receipts
of hogs have increased, the figure for May
being 3,049,223, as compared with 2,823,484
during April, the corresponding index numbers
being 139 and 128. Packers' purchases of
cattle for slaughter in the Kansas City district
are loss than a year ago, but the killing of
hogs and sheep shows a decided increase.
In steel and iron the month has witnessed a
distinct turn for the better, and manufacturers
now report a much more encouraging prospect.
Philadelphia reports "large orders from automobile concerns and for export." Operations
of steel plants in the Third District show increases for early June. In the southern iron
district " inquiries are multiplying." Pig-iron
plants which were idle in April are nowoperating, and others are making preparations to begin operations. Steel plants in the
Birmingham district are operating steadily.
Large orders for steel rails have been placed
by the railroads, and inquiries for a larg
amount of steel tonnage for export trade
have appeared. The unfilled steel tonnago
for the United States Steel Corporation as
of May 31 was reported as 4,232,310 tons,
but the reduction thus indicated is believed
to represent the low point of the movementdownward, which set in soon after the armistice

622

FEDERAL RESERVE BULLETIN.

Pig-iron production during May was 2,108,056
tons, corresponding to an index number of 91,
as compared with 2,478,218 tons during April,
the index number being 107. Steel-ingot production likewise shows a decline, from 2,239,711
tons during April to 1,929,024 tons during May,
the respective index numbers being 93 and 80.
Even where the pig-iron trade is slightly smaller
and where plants have not yet resumed their
activity, there is a much more hopeful feeling.
Pipe plants and steel mills are beginning to
receive increased inquiries for their products.
Foundries and cast-iron pipe makers are also
running more steadily.
The fuel situation has been much below normal so far as production is concerned since the
first of the year, and the bituminous market is
dull, but there is an increasing demand due to
a reduction in stocks and the fact that industrial consumers are coming to the conclusion
that a tight situation in the production of coal
will exist next winter. A great deal of highgrade bituminous coal is now said to be covered
by contract up to next April. A v^ry large
demand for anthracite coal for next winter is
now predicted. Increased production of both
bituminous and anthracite coal during May is
reported, the output of the former being 37,547,000 tons during the month as compared
with 32,164,000 tons during April, the respective index numbers being 101 and 87. Anthracite coal output for May is 5,711,915 tons,
as compared with 5,224,715 tons during April,
the respective index numbers being 101 and 93.
Mines have been producing far below capacity, and there is a possibility of shortage. The
coke market is quiet and prices are little above
the cost of production. Production of beehive
coke during May was 1,135,840 tons, as compared with 1,316,960 tons during April, the
index numbers being respectively 43 and 50.
These conditions tend to provide a cheaper
medium supply of fuel than would otherwise
be available, but with the probability of higher
prices later on. In the Pittsburgh district millions of dollars are being spent in repairs and
enlargements by steel companies, and this is
interpreted to mean that prospects of great ex-




JULY 1,

1919.

pansion are foreseen by shrewd operators.
Buyers all accept present levels of prices in
steel, and are willing to close tonnages at present prices to a more forward date than the producers have heretofore been willing to entertain. Steel is now being sold in the first open
market since the beginning of the war, but
shows strong capacity to maintain its price.
Orders are well distributed throughout the
country, and there is a large demand for structural steel. Wire plants are now operating at
about 85 per cent, while the pig-iron plants in
the Pittsburgh district are on a basis of from
65 per cent to 70 per cent. Metal mining industry is again improving, assisted by the removal of restrictions affecting the export of
silver and the prospects of a better market for
copper. Copper prices have strengthened during the month and the price of copper stocks
has moved up in sympathy with them. A
more favorable feeling in the Colorado district
has been produced by better prices for lead
and zinc. The volume of labor remains about
the same, but wages have been somewhat reduced. Zinc ore fell slightly in price during
the month of May in the Joplin district, but
lead ore has been practically stable. Operations are carried on at about 50 per cent of
capacity in both metals.
In common with the steel industry, manufacturing has taken a strong upward turn during the month. In New England the demand
for fine cotton goods exceeds production, and
the buyers in many cases are willing to pay
premiums in order to assure themselves of having goods when needed. There is a shortage
of skilled labor throughout the cotton district.
Shoe manufacturers are producing at maximum
capacity, while the heavy demand from Europe
is drawing off a very large portion of the available supply. In Philadelphia inquiry shows
that the cotton mills are in much better position than a few months ago, and that prices
have risen to very high levels, the advances
being greater proportionately than the rise in
raw materials. Export business is good and
limited only by the financial ability of foreigners to pay. Raw wool is in very strong

FEDERAL, RESERVE BULLETIN,

JULY 1,1019.

demand throughout all of the woolen-producing
sections, and a higher level of prices prevails
at the Government auctions. Products are
now sold ahead for many months, and active
business is expected for the remainder of the
year. Imports of raw silk during the month
of May were 4,878,646 pounds, as compared
with 2,988,838 pounds during April, the respective index numbers being 238 and 146.
Demand for leather has been on the increase
and prices have moved very high. Tanners
are endeavoring to buy from one another in
New England and manufacturers are finding
it considerably more difficult to buy their supplies in advance. In St. Louis great increases
in the boot and shoe business are reported and.
orders for fall delivery are already being placed.
The leather situation is difficult practically
everywhere. Automobile manufacturing is
running in many plants at record levels. Expenditures on the part of consumers have led
retailers to stock up more heavily than heretofore, and wholesalers generally report very
strong demand from their customers.
Building shows continuation of the revival
already noted. Heavy buying of lumber on
the part of retailers has become general. In
New England the number and value of permits
in May showed a very large gain over those of
the preceding month and year. In the Fifth
District there is an increase in the number of
permits issued amounting to about 22 per cent
over April. In the southwest building is
slower, but there is activity in repairs and reconstruction. There is a shortage of house
accommodations, but new building has not
been actively resumed. In Philadelphia and
New York the demand for accommodations is
far in excess of supply, prices of building materials, advancing, and reconstruction is being
rapidly developed. There is much trading in
houses and a great deal in business property in
many parts of the country.
The labor situation has now reached a distinctly advanced stage of full employment.
There is apparently no present condition of unemployment; indeed, many industries report




123722—19

3

623

that they can not get the men they need, while
wages are fully up to past levels or higher. The
requirements for farm help are absorbing surplus labor in practically all parts of the country. There is some surplus of unskilled workers in some centers, but this is not different
from the condition which frequently exists in
normal times. In the northwest the labor situation has greatly improved, particular!}' in the
copper mines. The Fourth District reports
that skilled workers are particularly few as
compared to the demand, and that there is very
little unrest. No reduction in wage scales is
now foreseen. One of the principal problems
in the labor situation that is noted by thoughtful observers is the fact that clerks and office
employees, as well as other workers receiving
more or less fixed incomes, have not yet participated in the advance in wages. Improvement
for these classes of workers will be necessary if
prices are to continue at their present level, but
will, of course, add correspondingly to the cost
of business to the Government. Returning
soldiers are being rapidly and steadily absorbed
into business, and the problem which for a time
seemed to threaten in this connection is now
apparently minimized in all directions. From
the farming districts particularly comes the
report that the supply of labor is scanty and
likely to prove more so as business progresses.
Official figures for the month of May now
show export balances of $277,000,000, and
while this figure is considerably below that of
the preceding month, it still represents an abnormally high balance. Exports of manufactures are beginning to show a relative increase as compared with shipments of foodstuffs supplied. The export problem has
assumed greater proportions as a matter of
immediate current business adjustment, and
the month has seen several far-reaching plans
for the financing of exports brought forward
and urged. There has been a somewhat better
development of shipping facilities during the
month, and the growth of our trade with various
countries, which has heretofore suffered from
unsatisfactory methods of communication,

624

FEDERAL RESERVE BULLETIN.

bids fair to showing improvement., The export situation is being watched in many parts
of the country" and is regarded as a very important element in the maintenance of business. There is, however, less relative anxiety
about it than heretofore, on account of the
very great growth in the demand for domestic
commodities, and the feeling that domestic
business should have the first claim for attention.
Speculation during the month has reached
an unprecedentedly high point, both in New
York and elsewhere. Call money has been
quoted as high as 15 per cent, and although
this level was not long maintained, it was taken
as an indication of danger and led to a reduction in the volume of stock speculation. An
inquiry into the sources of funds for call loans
has shown that the}" are widely distributed
throughout the country, and that the tendency
toward speculation is not localized, but general. Bankers are watching with particular
interest the development of this movement on
account of the large requirements of the crop
season and the obvious needs for the financing
of the export trade.
Government credit is in good condition, as
evidenced by the high and rising market for
Liberty bonds of practically all issues, particularly the Victory notes. Apprehension is
expressed in a number of quarters lest bankers
may get into the habit of overlending, and lest
the. prevailing high prices for real estate and
commodities may result in advances up to an
unduly great portion of the normal value of
the property or security offered.
As the year advances there is some tendency
toward a strengthening of rates in various
classes of commercial paper, while both stocks
and bonds have, in spite of some reactions on
the exchange, reached and fairly well maintained what are considered very high prices as
compared with the levels existing during the
war period. No marked movement in rates
on the whole is evident. In certain centers—
in particular Minneapolis and San Francisco—
rates in general have declined. In other centers a somewhat firmer tone in rates is noted,
although no pronounced instances of general




JULY JL 1910.

increase in rates are noted. The low rates for
customers' commercial paper on the whole
have decreased, as have to a less marked
extent both low and customary rates for
commercial paper purchased in the open
market. The Board's weekly figures for check
transactions show a marked growth in the
volume of operations, due no doubt to the
increase in volume of business and heavy
financing which has been in progress.
Removal of the gold embargo has been a
feature of the month's developments, and has
been followed by moderate shipments of gold
which, however, are much more than offset by
gold either imported or shortly to be imported,
and whose early arrival is certain. Foreign exchange has been in most cases weak and lower
than during the preceding month, francs and
lira being in a particularly unfavorable condition.
The banking situation as a whole is regarded as
sound, credit and collections throughout the
country being considered unusually good and
failures unprecedentedly small and few.
SPECIAL REPORTS.
REPORTED BY DISTRICT NO. 1.

Wool.—Considerable amounts of wool are
being regularly disposed of by auction. At
the present rate the amount to be left over
when these auctions cease on July 1, will be
approximately 60,000,000 pounds. However,
most of this is of inferior grade and not wanted
in this country at any price.
The spread that has existed for some timebetween the price of fine and medium grade
wools is now rapidly decreasing as the latter
are advancing. The demand for the best of
the medium grades comes from manufacturers
who desire to put a cloth on the market which
can slightly undersell that made from fine wool
and still answer every purpose which the other
does.
Mills received orders so late that they will
run well into September on this year's goods,
and there may be a considerable congestion
during" August7 and September when orders for
spring deliver} commence to be placed. Buyers
are therefore extremely anxious to make sure
of their goods and are willing to pay increased
prices for early delivery. Mills seem to be
operating very close to their normal capacity

JULY 1,1010.

FEDERAL BESERVE BULLETIN.

625

with more skilled workers needed in most had no effect on the shoe-buying public and
centers.
retailers are obliged to reorder frequently.
Cotton.—After a shutdown of three weeks, Credits in this line are steadily improving,
due to slight labor troubles, the New Bedford with only a small percentage of overdue bills
mills have opened again. The demand for fine outstanding, and a larger number of dealers
goods exceeds production and with the uncer- take discounts.
tainty in the cost of cotton there has been
As Europe is still in the market for leather,
much hesitancy upon the part of the mills even the release of surplus holdings by the
about booking future orders except at con- Government at auctions did not check prices
siderable advances over current prices. Buy- from advancing further. Tanners are eners in many cases are more than willing to deavoring to buy from one another and manupay these premiums in order to assure them- facturers are finding it continually more diffiselves of having goods when needed. Busi- cult to buy in advance the grades needed for
ness at Fall River is above normal, with prices their output.
strengthening. Almost all lines are at a
higher level than during the war.
REPORTED BY DISTRICT NO. 2.
The demand for cotton has not responded
to the increased demand for cotton goods. In
Business in the Second District has mainthe case of extra staple, the shutdown at New tained the acceleration observed a month ago.
Bedford left mills with present needs well The inclination to buy has not abated. The
cared for. With a quiet market for cotton, demand has concentrated upon the articles
prices have shown considerable variation, fol- used in daily living—foodstuffs, woolen and
lowing, however, a general upward tendency. cotton goods, shoes," and other articles of curIt is reported that some surplus short-length rent necessity. To replenish domestic stocks
cotton held here in New England which was retailers have been obliged to increase their
not wanted at the prevailing prices has been demand upon manufacturers and producers,
sent South for export at a price sufficiently with the result that many industries report
high to pay all extra shipping costs.
maximum activity. The export demand has
A shortage of skilled labor is universally felt, supplemented domestic requirements. Prices
especially since the reduction in working hours remain high and in some cases have increased,
has caused a corresponding decrease in the but not yet to such a degree as materially to
affect sales.
average day's output.
Dry goods.—An exceptionally active demand Two of the basic industries have not yet refor all classes of dry goods keeps up without turned to normal activity. From the iron
abatement. Some of the larger retailers are and steel trade it is reported that conditions
experiencing great difficulty in obtaining goods are improving, but production is still far below
for future sales. This has caused them to maximum. The building industries are more
place orders longer ahead than is customary active, but they appear to be held back by a
and offer premiums for prompt delivery. Dis- shortage of funds available for building loans.
tributors feel the effect of this heavy retail An inquiry conducted by this bank shows that
trade almost immediately, as dealers' stocks the demand for buildings is overwhelming and
have not been large during recent months.
that operators are willing to go ahead, even
There is no indication that the present in the face of high prices. They appear to
activity in these lines will cease for some time be convinced that prices for building material
to come. Both distributors and retailers are will be maintained or will go higher. They are
therefore looking well into the future when ready to proceed, but the inadequate supply of
applying their needs.
money limits their action.
Leather and shoes.—The demand for shoes
The most notable incidents of the month
shows an improvement over last month. Manu- ! have been in the money and stock markets.
facturers who have not had any Government i These markets, closely interrelated, have given
contracts are now producing at maximum I unmistakable signs of feverish speculation.
capacity. Others have almost reached this I As is frequently the case at such times, buying
point, and all see the only hope of further I on account of interest values has given way to
increase is from greater efficiency on the part | buying; against the rise in the market for
of the employees and additional labor-saving j immediate profit. In its earlier phase during
devices. More skilled labor could be readily | the last two weeks of May the present moveused if available. Higher prices have so far I merit in stocks seemed to reveal the presence of




626

FEDERAL KESERVE BULLETIN.

many new buyers who were attracted to the
market by rising prices, and whose combined purchases moved the market higher. In the second
phase of the movement that started late in
May and carried through into the early part
of June, prices continued to rise in such a way
as to give concern lest speculation should engage the credit resources of the country in
such degree that normal liquidation would be
retarded. The most active speculation was in
the oil, tobacco, and motor shares. The greatest activity was on June 3, when 2,219,000
shares were sold, the heaviest day's business
since December 21, 1916. The rise of call
money rates on that dav indicated that speculation had overreached itself. A slight recession developed a week later, and on June 16
there was a sharp break, which continued the
next day, carrying down the prices of those
stocks which had risen most rapidly in the
upward movement. Subsequently the market
recovered somewhat from the losses sustained
on the decline. The Annalist record of the
average prices of 50 representative stocks was
88.37 on June 5 and 86.65 on June 12, as compared with 82.49 on May 15.
The bond market has not shared the activity
of the stock market. The rise which took
place early in May became less apparent
toward the end of May, and in June prices fell
off slightly, approximating by the middle of
the month the prices of four weeks before.
Tax-exempt issues have been preferred and
Victory 3fs have been above par, with Victory
4fs fractionally below for most of the month.
Toward the end of the period Victory 4fs rose
above par. A syndicate of New York and
western bankers brought out on June 12 an
issue of Swedish Government 6 per cent bonds
in the amount of $25,000,000.
Call money.—The pressure on the money
market was concentrated on call money. The
increasing demand and the diminishing supply
was attributed to a variety of causes—the
long-continued speculation on the stock market, an increasing unwillingness on the part of
the banks to extend credit on call loans, following the Federal Reserve Board's inquiry on
this subject; the Government's withdrawal of
funds with which to redeem certificates of indebtedness, and the large transfers of money
incident to income-tax payments. The high
point of the month was on June 16, when caD
money went to an unofficial high mark of 20
per cent after the close of the money market,
the highest point reached in 11 years.




JULY 1,

191S,

In the last two weeks of May rates remained
virtually the same as in the preceding period,
ranging from 3J to 6 per cent, with 5 to 5i prevailing. The maintenance of these rates in
the face of heavy stock-market trading was
attributed to an influx of money from the
Middle West. On Tuesday, June 3, almost
without warning, the call loan rate crept up
until by 2'o'clock it was quoted at 11 per cent.
This figure, the highest since December, 1916,
was only temporary, however, and the next
day rates eased off, owing to the placing of several million dollars on the market by one of the
large banks. For the rest of the week the renewal and ruling rate was 6 per cent. On all
industrial collateral, however, rates were frequently quoted 4 per cent, instead of the normal one-half of 1 per cent above the mixed
collateral rate. On Tuesday, June 10, the decline in the stock market was accompanied by
a high call-money rate, when the maximum for
the day was 8 per cent. From day to day the
nominal renewal rate was at or about 6, but
every afternoon during that week there were
sharp advances, culminating Friday in 12 per
cent for both mixed and all industrial loans.
The official high rate on Monday, June 16, the
final day for the payment of income taxes, was
15 per cent. The next day the relief caused by
the payment of certificates of indebtedness due
on June 15 and 16 was apparent, and gradually
the market declined.
Interest rates.--The higher money rates were
apparent, though in less degree in the commercial paper market. Up to the end of May commercial paper rates remained unchanged on a
5^-5^ basis. But about June 1 the rates advanced to 5i per cent for 60 and 90 day indorsed paper and six months choice names.
Both local and out-of-town institutions were
in the market as buyers, but dealings as a
whole were light, owing to the scarcity of highgrade offerings.
For some time past an increasing supply of
bankers' acceptances has been coming into the
market in the face of a light demand, so that
dealers' portfolios have been growing. With
call-money rates rising to levels not known for
many years, dealers in acceptances have found
it difficult to dispose of their holdings at favorable rates, and the Federal Reserve Bank has
been called upon to buy an increasing volume
of them. The rates have remained throughout
the period at 4J to 4 ^ per cent for 90-day
eligible bills. The long-expected bills drawn
under the $50,000,000 Belgian credit appeared

1,1910.

FEDERAL RESERVE BULLETIN.

in the market early in June. Some time ago
$10,000,000 of these bills arrived in this country, but were held up pending settlement of
details between American syndicate managers
and representatives of the Belgian banks. The
remaining $40,000,000 will probably be brought
out within the next two weeks.
REPORTED BY DISTRICT NO. 3.

Automobiles,—Dealers in pleasure cars report
that business has never been better, and that
sales for April, May, and so far in June have
broken all previous records. They are exceedingly optimistic about the future and state
that the only serious question is to supply the
wants of their patrons for new cars, the demand
being greater than the supply. Production is
somewhat hindered by labor difficulties but
factories are gradually getting back to capacity
production, and by fall it is believed that it
will be possible to catch up with back orders.
Truck sales dropped off very materially after
November 11, and during the four months
following they were far below the 1918 business.
A slight improvement was noted in April, and
during May sales were in a more favorable
ratio to the business of a year ago, although
still remaining low*
Cement.—Up to a short time ago, the demand
for cement and lime was very small. Recently
there has been a considerable increase due to
the expansion in building operations. Purchasers are realizing that prices of these materials have advanced very conservatively as
compared with other commodities; there seems
to be no hope for immediate reductions in
prices, and the building trade seems to have
accepted the situation on this basis and to
have gone ahead.
Chemicals and drugs.—Heavy industrial
chemicals show a small increase in activity,
but consumers continue to buy according to
their current needs. The volume of business
of those concerns which dealt in labaratory
materials has naturally fallen off since the
armistice, as a large part of their sales were
made to plants which were heavily engaged on
war orders. It is stated that educational
and institutional business is reviving and
prospects for consumption in these lines is
considered good. The drug market is quite
active.
Clothing.—Orders for clothing have been
exceedingly heavy and some manufacturers
doubt their ability to secure enough woolens
and other materials to fill them. Excellent




627

crop conditions in the West are reflected by
heavy demands for clothing which are expected
to insure splendid conditions for the fall and
spring. The demobilization of the Army still
serves to add immensely to the volume of
business. No difficulty is experienced in
collecting accounts.
Cotton.—The business of the cotton mills has
shown very great improvement over conditions
a few months ago and prices have risen to
high levels. These advances are said to be
greater proportionately than the advances in
raw material. Conditions around the middle
of June show a more settled state and the wild
rush to buy anything at any price seems to
have lost some of its momentum.
The export business is good and limited
only by the financial ability of foreign buyers
to pay. Inquiries are received from all parts
of the world, credits are being arranged to
facilitate purchases and indications are that the
export business will be very heavy next
season.
Wool.—The demand for raw wool has been
very large, and although there was some
slackening sometime ago, latest reports from
Boston wool sales indicate a higher level of
prices than ever before at the Government
auctions. * Spinners and top makers are sold
ahead for months. Buyers of woolen and
worsted goods are buying on a large scale and
seem willing to pay practically any reasonable
price. Civilian cloths are stilt in scant supply
and mill production is not up to 100 per cent
due to the slow deliveries of raw materials
and the shortage of skilled operatives. Very
active business is expected for the balance of
the year and possibly longer. Some firms are
finding it difficult to finance their business
requirements on account of the high prices of
merchandise and the increased cost of doing
business.
REPORTED BY DISTRICT NO. 4.

The iron and steel industry has taken a
decided turn for the better. New business is
coming in in good volume, with mill operations consequently increased.
During the period since our last report, the
stronger tone and confidence among buyers
have been so developed that a substantial
buying movement has resulted. Many contracts covering iron and steel requirements to
October 1, and in numerous cases to January
1, have been made, with few exceptions, uj>on
the basis of current prices. The situation

628

FEDERAL RESERVE BULLETIN.

generally evidences a willingness on the part
of buyers to accept the present level of prices,
with less expectancy of reductions. In some
cases the buyers have been willing to close
tonnages at present prices to a more forward
date than the producers have been willing to
entertain. Most prominent among this class
of buyers are the automobile manufacturers
and the makers of automobile accessories.
For four years the war demands have dominated the market and ordinary requirements
to a great extent have been forced to a standstill, but steel is now experiencing its first open
market since the beginning of the war. The
trade apparently feels that the worst is over
in the matter of readjustment from wartime
to peace conditions. There is some question
as to whether there will be any decline in
prices until after a period of full capacity
operations.
A hopeful condition is noted in the fact that
orders are reported as well distributed over
the country, which is evidence that the market
is developing on a much broader basis and
that buying is no longer confined to the automobile industry and the oil piping demands.
Another healthy condition is shown in the
increasing call for structural and fabricated
steel. This leads us to a more or less permanent demand, for it shows that building operations are brightening up, which gives rise to a
basis for a steady growth.
Wire plants in the Cleveland district are
now operating at about 85 per cent. Makers
of light or sheet plate, selling principally to
the automobile trade, have booked themselves
fully for several weeks ahead. Plants which
sell semifinished steel for rolling into finished
products have put several furnaces into operation for the purpose of increasing their output.
Pig-iron sales in the Pittsburgh area have
been heavy, the demands during the past two
weeks exceeding 100,000 tons. This is the
best selling that the market has experienced
at any time this year. Gray iron and malleable furnaces especially have been active
buyers. The period of delivery is running as
far as January 1. More inquiries are coming
in from manufacturers of stationary engines
and steam boilers. Plants which had been
working only three and four days a week since
the 1st of January are again working on a 60
to 75 per cent basis.
Collections are satisfactory, with the exception of the railroads, but in view of the appropriation of $750,000,000 just passed by Con-




JULY 1, 1919.

gress, it is thought that doubtless there will
soon be relief from this quarter.
REPORTED BY DISTRICT NO. 5.

Farmers are prosperous and a greater number than usual have paid cash for their fertilizer. There has been a full planting of
tobacco and corn, both of which, however,
are a little late, due to cool weather and too
much rain. The acreage of cotton is estimated
to have been reduced about 15 per cent and
has also been affected somewhat by unfavorable weather, but there is ample time for
recovery from these conditions. The demand
for horses and mules, like the demand for
everything else, has been active and prices
high.
The planting of truck crops, particularly in
the coastal sections, has been below normal,
but prosperous conditions have made such a
demand for them at high prices that growers
have been securing highly satisfactory returns.
Sales of some of these growing crops by the
acre have been made at very fancy prices.
The crops of the past season, the marketing
of which has now been nearly completed, have
brought high prices and have been the chief
factors in the general prosperity. Cotton continues to move more freely and more tonnage
is available at the ports for export. Prices for
peanuts have continued to improve and
cleaners have been working their plants under
full time, but under some handicap as to labor.
REPORTED BY DISTRICT NO. 6.

Reports from New Orleans indicate a noticeable increase in May in trade to Central and
South American ports as well as to other
foreign points. It is now possible for the inland shippers to make contracts with the
various steamship companies at the gulf
ports for the export of their commodities.
No congestion is apparent at the terminals, as a
sufficient number of ships are available to take
care of all shipments for which contracts have
been made. Very little lumber is moving, being
used principally for ballast, but cotton, grain,
and foodstuffs comprise the majority of the
cargo. The foreign market for these commodities is especially profitable, owing to the
decrease in freight rates and insurance on
account of the removal of the risk of destruction.
Conditions existing at this time in trade with
Central and South America, Cuba, and Panama

JULY 1,

1919.

FEDERAL RESERVE BULLETIN.

are reported to be better than those prevailing
before the war. Not only is this true from a
financial standpoint, as the profits for both the
steamship companies and the shippers haveincreased, but it is also true that the quantity
of commodities exported shows a marked
increase. All steamers which were commandeered by the Government for transport service
have been released to their owners and have
resumed their former traffic. Large quantities of coffee are being imported from Brazil,
sugar from Cuba, bananas, palm kernels, and
other tropical fruits, and sisal from Central
America.
During the past month there has been
excessive rainfall in practically all parts of
the district. The condition of the cotton crop
was reported fair before the rains, but cultivation has been impossible for two or three weeks
and cotton fields have become very grassy. It
is estimated it will take two or three weeks to
clear out all of the grass and weeds. Reports
of the boll weevil in the infested areas are
received, and while farmers are doing everything possible to prevent damage to the plants,
the possible injury from this insect to the crop
in the normally infested area may be great
this season.
While some cotton has been sold on the
recent rise in the price, quantities are still in
the hands of the producers, in some reports
estimated at one-third of the crop.
The corn crop is reported to be somewhat
increased over last year. It is practically all
planted, and the earlier plantings have been
well cultivated and have made splendid
growth.
Reports continue to indicate that Tennessee
wheat is in good condition, with prospects for
large yields. Wheat, oats, and hay in Alabama have been injured to some extent by
recent wet weather.
Planters report that there has been too much
rainfall, even for rice, and the cool weather has
delayed the growth of the crop which is now
estimated to be three weeks late.
The development of tobacco growing in
Georgia, Alabama, and Mississippi is progressing, and a considerable increase is indicated
over last year.
The live-stock industry is showing progress
in all of the Southern States. Interest in good
breeding stock is growing and the demand for
good grade beef stuff—young, and such as will
make good gains on pasture—is greater than
the supply. There is a fine interest in sheep,
and the movement for a small flock on every
farm is making headway in many sections.




629

REPORTED BY DISTRICT NO. 7.

In view of the gradually expanding industrial
activities throughout the country and the rather
abnormal requirements in financing the crop
movements, both because of the higher prices
and the enormous wheat production, western
bankers are watching particularly closely the
development of the present speculative movement. At this season of the year bankers in
this section are usually cautious in extending
loans because of the approach of the harvest
with its usual large requirements, and this is
especially true this year because they see ahead
a strong demand upon the available banking
funds. There is an element, however, that is
taking a decidedly opposite view of the situation, made up chiefly of those who have
amassed enormous profits out of the war-time
demands during the last few years, and, having
accumulated wealth rapidly, appear to be
anxious to turn over their fortunes speedily in
speculative ventures. This element of newly
made rich for some time has been quietly
seeking employment for its funds; and as ordinary business profits recede with the subsidence
of the war demands and the continuation of
high costs of labor and material, it turns to the
stock market and other phases of speculation.
The security market activity of the last
month or two has been closely scrutinized by
bankers with a view of determining just where
the money that was represented in this activity
is coming^ from. So far as careful inquiry discloses, the banks in the Seventh Federal
Reserve District have participated directly in
Wall Street loans to a very limited extent,
There are a few Middle West banks which
always carry considerable balances in New
York and, from time to time, loan some of
these funds on call in the stock market; but
these balances and the Wall Street loans, with
two exceptions, are not larger than usual, and
in some instances are actually smaller than in
normal years at this season. Practically none
of the member-bank borrowings at the Federal
Reserve Bank on United States securities has
found its way into the stock market, as far as
they can be traced.
TFhere are indications that considerable
Western money has gone into the stock
market, but it is the money of the individual
who is investing his profits oi the last few years.
The flurries in interest rates in Wall Street
apparently served only to cause these new
speculators to check against their deposit
accounts and take up the stocks, with the result
that the floating supply of available stocks in

680

FEDERAL RESERVE BULLETIN.

the market is curtailed, which necessarily
makes a further advance easier.
One of the contributing features tending to
produce a scarcity of available stocks is the
attitude of the investor, who during the period
of actual hostilities bought shares at low prices
but hestitates to sell at the present level and
11
take his profits" because of the large percentage of the proceeds he will be called upon to turn
over to the Treasury in the shape of excessprofits tax.
An indication of the increase of public interest
in stocks in the Middle West is reflected in
reports of nine of the big corporations whose
shares are widely distributed and are more or
less favorites. The number of shareholders of
these companies, all industrials, shows increases
running from 33 per cent to 83 per cent compared with 1917, the average increase in holders
being 30| per cent prior to the recent market
activity. This percentage does not reflect the
wide distribution of the newer oil companies
and promotions.
There has been more or less wild speculation
in oil shares and promotions during the last tw^o
years all through the Middle West, but this
speculation, outside of the immediate oil-producing territories, did not involve any extensive
expansion in bank loans.
But not all of the speculative interest is
centered 7 the stock market. The abundance
in
of mone} and credit in the shape of profits
during the war period seems to be seeking an
outlet in some speculative form or other, and
this is not entirely restricted to the buying of
oil stocks or the more seasoned shares listed on
the New York Stock Exchange, for there has
been a rapid increase in the activity and movement of real estate, both farm and city, during
the last six months. Necessarily the restrictions on building during the war time resulted
in a shortage in available apartments and office
space in nearly all cities in this district. With
these restrictions removed interest is reviving
in city real estate, although the cost of construction for a time restrained building activities. The feeling, however, is spreading that
although construction material costs have increased approximatly 60 per cent compared
with 1914, the increase in rentals has been
exceedingly small, and that the shortage in
available dwelling and office space in most of
the cities will result in an increase in rents.
The most striking development, however, in
the. real estate movement is the activity in
farm lands. This movement is commonly referred to as a reviral of activity rather than




JULY 1,

1910.

anything bordering upon speculation in farm
lands, but there has been injected into the
situation a phase which closely resembles some
of the features which were conspicuous in
previous speculative land movements. In some
sections there seems to have been adopted in
this land development a brokerage or "option"
method of trading. This is indicated by the
frequent changes in ownership of the same land
at advancing prices. If these operations continue it is feared they may culminate in a
rather serious situation around March 1.
Enormous prices of farm products, however,
together with large crop production, has contributed to the wealth of the agricultural sections of the Seventh Federal Reserve District
to such an, extent that not only is the available
land coming on the market quickly snapped up,
but buyers, and even speculators, are bidding
for farms not seeking a purchaser. The consequence is that prices have reached the level
in some instances, of $700 and S800 an acre,
and there have been instances where strictly
farm land has changed hands three times thus
far this year at advancing prices. In one section of the district the land activity and advancing prices have reached a point where it
is impossible to figure a satisf actor}^ investment
return at the existing price per acre on the
going cash rental basis of $12 per annum per
acre.
There is one reassuring feature in this land
activity. The previous owners of land are
selling at the high prices and reinvesting in
neighboring States where land is available at
lower prices and has not felt the effect of the
speculative movement. This necessarily has
an equalizing tendency but it is also stimulating a more general land movement and
speculative activity in farm lands.
One feature of the development is the effect
on the borrowing situation. It is admitted
that farm loans are now being made in some
parts of one of the States in the Seventh District on a valuation two and one-half times as
large as the loaning limit of six years ago. To
counteract this tendency, with its perils, some
cautious lenders have enforced a rule of fixing
a conservative valuation beyond which they
will not accept farm liens; but there are other
lenders who are encouraging the trading in
lands by fixing a much higher lending limit.
In one of the Seventh District States about 35
per cent of the farm land deals appear to be for
a -'quick turnover/' according to close students of the situation living in that State.
About 15 per cent represents a desire to profit

FEDERAL RESERVE BULLETIN.

JULY 1,1910.

on the rise expected within the option period,
and the remainder, or 50 per cent, of farm-land
buyers aim at occupancy and operation. From
this estimate it would seem that there is more
or less of the speculative feature in at least half
of the land transactions in that State.
One of the arguments used by the speculative element, which has been gradually absorbed and adopted by the farmer, is based on
the experience in more recent years that land
prices seldom, if ever, recede, although the demand for farm lands subsides when the price
gets out of line with money conditions until
there is no market. The disposition is to overlook the experience following the Napoleonic
wars, in which, according to French and English economists, English farm lands which had
been marked up to extravagant figures in consequence of the sudden rise in grain, meat, and
dairy prices slumped after the battle of Waterloo, bringing ruin to the land speculators.
Land prices fell 50 per cent or more, even for
the most productive and desirable English
estates, corresponding with the sharp decline
in wheat prices from the high mark of 110s. per
quarter in 1810 to 43s. per quarter in .1822.
The cause of this was, of course, the decline
in incomes and the heavy increase in taxes and
other fixed charges.
REFOETED BY DISTRICT NO. 9.

Very serious damage to the grain crops
throughout practically ail of the State of Montana and in portions of western North Dakota
was narrowly averted by timely rains during
the fore part of the month. In northern and
central Montana and parts of the Yellowstone
Y&iley section winter wheat was seriously
damaged before the rains came, but the recent
moisture has been of very material assistance
to spring wheat, of which a large acreage was
planted and the prospects before the State, as
a whole, arc favorable.
Cut worms and wire worms have done some
damage in northern Montana, and grasshoppers have done some damage in western North
Dakota. The chief cause of deterioration to
grain crops in the western portion of the district was, however, the dry weather, which
continued throughout nearly all of May and
the first part of June.
The South Dakota outlook is excellent.
The outlook in practically all of North Dakota
is very good. Minnesota and Wisconsin prospects "are for a large crop, Throughout Wis-




123722—19

4

631

consin, Minnesota, and South Dakota corn is
up and is being cultivated. Pastures are excellent and dairy farmers are getting a good
flow of milk. Grass lands and clover are in
excellent shape. Clover is in blossom in
southern Minnesota and Wisconsin, and forage
crops all promise large yields. In western
North Dakota and Montana, however, recent
rains were timely, as the pastures were getting
very short, and there was prospect of difficult}'
in carrying the stock through the summer,
REPORTED BY DISTRICT NO, II,

Agriculture.—The wheat crop is a bounteous
one; has had excellent growing conditions, and,
except for lack of labor, which has been short
throughout the belt, the harvest is progressing
well. Conservative estimates place the crop
at some 40,000,000 to 50,000,000 bushels this
season, which is almost double former records.
With high prices prevailing, and the encouraging news from the East with reference to the
plans for control of this crop in its process of
marketing, sections enjoying wheat farming
are undoubtedly in a most favorable position^
The cotton crop seems to have suffered some
from heavy rains, which have produced a rank
growth of weeds, difficult to combat with inadequate labor, which is the prevailing condition in most cotton growing sections of this
district. Efforts at reduction of. acreage in
accordance with a prearranged general plan
have been eminently successful, judging" by
reports now received, but this curtailment of
total output, added to adverse weather conditions and lack of labor, gives this important
staple an outlook which, in the opinion of
some, is not very encouraging at this writing.
Further heavy rains will undoubtedly work a
considerable hardship.
Corn growing in this district is attended with
some uncertainties, which usually develop a
little later in the season, when hot winds and
prolonged periods of dryness will upset what
appears to be a good start, but heavy moisture
and excellent growing conditions this season
have put the plant in a strong position and it
is pretty generally believed that the crop will
be large. Labor conditions affect this division
of agriculture less at this time than others.
The oat crop is growing on a larger acreage,
and r where harvest has begun the results are
ver} good. Lack of labor has worked some
hardship, but returns from the crop, as a
whole, are satisfactory.

632

FEDERAL RESERVE BULLETIN.

The rice crop is all planted, although, delayed a little this year on account of excessive
rains. The acreage is about normal, from the
reports received, and the condition at this
time is stated to be excellent.
Livestock.—Cattle raising has undoubtedly
entered into a period that will enable it to
recoup losses suffered for many seasons past,
and there is not an adverse note in any
of the large number of expressions now obtained from the best posted cattlemen throughout this distiict. The grass supply is bountiful. The past winter in most sections was
normal, and while prices have not been as
attractive as some have expected, the industry
is undoubtedly in a very safe position. Cattle
feeders who have fed high-priced feed, have,
of course, looked with some apprehension on
recent declines in livestock prices, but adeauate banking facilities, as well as plans for
the organization of a large financing corporation, give tone to the very favorable reports
that are heard from this industry.
Sheep raising has also been quite satisfactory, and with plenty of grass and falling feed
prices, those most interested in this industry
are making quite favorable reports.
The hog raising sections of the district furnish favorable reports, although in some sections falling prices are pointed to by some as
the basis for their fears that the industry will
not continue to be so well financed as heretofore.
RE POUTED BY DISTRICT NO. 12.

JULY l, 1919,

district was estimated on June 1 by the United
States Bureau of Crop Estimates as follows:
Production (bushels).
1919

1918

Washington
Oregon
Idaho
California

57,775,000
23,641,000
23,253,000
14,400,200

26,429,175
18,654,000
17,940,000
7.590,000

Total

119,069,200

Per
cent
increase.

70,613,175

112
2ft
29
91

According to these estimates, this year's
wheat crop will be the largest ever produced
in Washington, Oregon, and Idaho, and the
largest in California since 1907.
Reports from all parts of this district concerning deciduous fruit crops are very favorable except from Oregon, where prunes have
been dropping heavily. In California navel
and Valencia oranges are setting well, lemons
are still blooming, and walnuts and grapes are
making favorable progress.
The first crop of alfalfa is being cut in Utah,
northern Nevada, Idaho, and Oregon, and the
second crop in Arizona, California, and southern Nevada. Rains during the first week in
June in Arizona, Utah, and Nevada greatly
benefited the ranges. Live stock generally is
improving in condition, and feed on the summer ranges continues good.
Housing and Living Conditions in New York.
The following study of housing and living
conditions in New York has been furnished to
the Board by the Federal Reserve agent of
District No. 2 and is herewith published as
throwing light upon the general situation of
building and cost of living.

Lack of rain in Washington, Oregon, and
Idaho is causing considerable uncertainty and
some anxiety as to grain production. Although the soil was well saturated with moisture during the spring, the surface has dried
out to such an extent that it may keep the
grain from filling normally. Winter wheat is
standing the drought better than was expected
BUILDING.
two weeks ago, but spring wheat is beginning
to head prematurely. In California the grain
The conditions governing the resumption of
harvest has commenced. Early barley and building operations have become so pressing
winter wheat have filled well, but the late sown in this district that the bank undertook to
crops are in poor condition and some have determine what causes, if any, have prebeen cut for hay. Dry winds during the first vented the immediate start of all construction
week in June shriveled some wheat and barley required. The number of families in New York
in the Sacramento Valley, but no general dam- City which are without adequate accommodaage was done.
| tions was estimated, in a report sent to the
The production of spring and winter wheat | governor of the State of New York by a joint
in the principal wheat-producing States of the 1 legislative committee, at between 30,000 and




JULY 1,1919.

FEDEEAL RESERVE BULLETIN.

35,000. It is probable that 40,000 families will
require better housing by the close of the
summer. Similar conditions exist throughout
the district.
The need for house construction is, of course,
only one phase of the building problem as a
whole. One authority estimates that the
structural industry must be operated on a
basis of 20 per cent above normal for about
five years in order to make up the shortage.
An effort was made to find out—
First. Whether the prices of building materials are apt to go down.
Second. Whether operators were willing to
go ahead on the basis of the present high prices.
Third. Whether money was available to
finance building operations should the operators and the dealers in materials come to an
agreement on prices.
Dealers in building supplies uniformly assert
that prices will not go down, but that on the
contrary they are apt to go up. Materials, including lumber, structural steel, lime, brick,
and Portland cement, are already in demand
for export and for domestic use. Lumber
dealers report, for instance, that Great Britain
has ordered a vast quantity of spruce lumber
from Canada, thereby restricting that market
materially for the United States. The demand
for steel, particularly for structural purposes,
is increasing. Other building materials are
facing a similar growing demand.
With business increasing the dealers see no
substantial reason why prices should fall.
They point out that according to the figures
from the Division of Public Works and Construction Developments of the United States
Labor Department, general commodities have
advanced 113 per cent and farm commodities
116 per cent, whereas building materials at
their present level have increased only 84 per
cent from those of 1913. They argue, therefore, that material costs are low, taking into
consideration the present buying power of the
dollar. Moreover, in 1918 prices for materials
increased in the face of a declining demand.
Contractors who build for investment and
building operators are willing to accept the
situation as it exists. An inquiry among the
largest and best builders in New York City
show them ready- to begin building at the present cost of labor and material, if building money
could be secured on a basis which would enable
them to operate without much refinancing in




633

the near future. This readiness to go ahead is
based on the theory that if building prices go
down at all the time is so remote that the rents
to be secured in the interval will more than make
up for the impairment of equities.
The crux of the difficulty appears to be that
building loan money is not present in quantity.
The legislative committee reporting to the
governor of the State of New York estimated
that $75,000,000 was required to make a start
and provide housing for the people now without adequate accommodation. Thus far the
committee has found only $35,000,000 available for this purpose. Tliis leaves out of consideration the building of other sorts of which
the district finds itself short to the gross value
of many hundred million dollars. One estimate places the gross requirement as high as
$1,000,000,000.
A variety of causes appears to be responsible
for the shortage in building loan funds. The
main sources of real estate loans are savings
banks, title and trust companies, insurance companies, building and loan associations, and individual lenders. Building loan money for large
operations is furnished principally by life insurance companies and by title and mortgage
companies. Insurance companies at present
are without a substantial volume of funds for
investments, due to their purchases of Liberty
bonds, and many of the Now York companies
are borrowers instead of lenders.
As a matter of fact, according to figures of
the Labor Department, along with the vastly
increased financial resources of the county the
amount of money that has been applied to the
development of real estate and building has
not proportionately increased. Real estate
loans from 1913 to 1918 did not increase as
rapidly as bank resources. During 1917 and
1918 statistics indicate that there has been a
decrease in real estate loans held by financial
institutions. This fact is partially attributed
to the relatively small increase of resources
in savings banks, the main field for real estate
loans, as compared with tho resources of commercial banks and trust companies.
As compared with 1918, building activity in
April shows a groat increase, assuming that the
estimated value of building for which permits
have been issued is a fair index to the present
condition.
The following gives a comparison between
the April figures of 1918 and of 1919, as reported

634

FEDEKAL RESERVE BULLETIN.

JULY 1,

1919.

from the building departments of the five Statistics. All but 5 of the articles showed
increases over the February prices. The
boroughs of New York City:
following is the result:
Number of
buildings.

Estimated cost.

Boroughs.
1919

1918

1919

1918

Per cent
gain in
value.

Changes in prices of various foodstuffs, New York City, January to June} 1919.
RETAIL PKICES.

Bronx
Manhattan.
Brooklyn
Richmond
Queens

304
49
1,066
197
1,337

259
17
923
88
357

$2,299,498
3,333,750
4,723,100
379,580
3,290,226

$302,771
558,700
3,534,970
211,634
743,510

Total

2,953

1,644

14,026,154

5,351,585

659
496
33
75
342

Per cent
change,
Feb.-June.
Commodity.

Unit.

Jan. 15. Feb. 15. June 2.
In- ! Decrease, j crease

The reports for May are as follows:
New building.
Number.

Value.

Alterations.
Number.

Value.

Bronx
Manhattan
Brooklyn
Richmond
Queens

67
35
667
221
978

$1,798,050
2,648,750
5,867,600
358,123
5,435,270

308
403
723
84
380

$365,038
2,340,376
997,948
61,088
422,670

Total

1,968

16,107,793

1,898

4,187,120

The value of building permits as an index
is, however, problematical. They no more
than register the intention of builders to build,
and action under them is contingent largely
upon the rates at which money can be secured.
It is possible that funds will be made available,
in view of the pressing demand, but the
normal sources, with the possible exception of
the private lenders, it would seem are not able
to meet the requirements at this time.
COST OF LIVING.

In order to determine as nearly as possible
what increase, if any, had taken place in the
cost of living, this bank made an inquiry into
two of its elements, namely, retail food prices
and rents in the city of New York and at the
same time secured figures showing the current
wages.
In order to compare present retail food
prices in New York City with those of a few
months ago, quotations on 41 common articles
of food on June 2 were gathered from a number
of dealers in various sections^ of the city.
These quotations were averaged and compared
with the January and February prices for
articles of the same kind and quality published by the United States Bureau of Labor




Sirloin steak
Round steak
Rib roast
Chuck roast
Plate beef
Pork chops
Bacon, sliced
Ham, sliced
Lamb
Fowls
Salmon, canned
Milk, fresh
Milk, evaporated 1..
Butter. . .
Oleomargarine
Nut margarine
Cheese, American..
Lard
Crisco
Eggs, fresh
Eggs, storage
Bread
Flour
Cornmcal
Cornflakes
Cream of wheat
Rice
Beans, navy
Potatoes
Onions
Beans, baked
Corn, canned
Peas, canned
Tomatoes
Sugar, granulated..
Tea
ColTee
Prunes
Raisins
Bananas
Oranges
1

Lb
Lb
Lb
Lb
Lb.
Lb
Lb
Lb
Lb
Lb
Lb
Qt
15-16 oz..
Lb
Lb
Lb
Lb
Lb
Lb
Doz
Doz
Lb.2
La.
Lb
8-oz. pkar.
28-oz.pkg.
Lb
Lb
Lb
Lb
No. 2 can.
No. 2 can.
No. 2 can
No 2can

Lb
Lb
Lb
Lb
Lb

Doz
Doz

Unsweetened.

Cts.
44.8
47.3
40.9
32.7
28.0
43.5
54.8
57.1
33.6
40 8
37.0
16.0
16.1
75.5
37.2
34.3
42.7
33.1
32.3
78.1
61.1
10.0
6.8

6.3
12.4
21, 0
13.8
15.3
4.0

Cts.
44.9
46.9
40.9
31.7
28.5
39.9
50.3
56.0
32.3
39 5
35.6
16.0
15.7
58 1
37.1
34.0
42.6
31.8
31.7
60.5
52.0
10.0
68
6.1
12.4
24.0
13.3
14.3
4.0

4.2

4.4

17.7
19.7
18.5
16.1
10.1
53.5
32.4
22.1
15.3
32.0
51.2

16.8
19.0
18.2
15 5
9.9

55.1
33.5
22.9
15.7
32.1
50.0

Cts.
46 3
3 1
48.0
2.4
41.4
1.2
34 0
73
17 2
23.6
44.2
10 8
52.2
3.8
55.0
1 8
26.6
40.7
46 7
18 ^
38.0
6! 8
16.6
3.8
16.1
2.6 «
6° 0
18 8 :
35.2
5.1
34.4
"i*2
44.0
3.3
36.7
15.4
33.9
6.9 •
65.0
7.4
57.3
10.2 :
10.2
2.0 8 9 30 9
9.5
55.7 •
12.6
1 0
23.3
;
2.9
14.2
6.8 : .
14.2
8.0 "i66."6"i .
14.4 227.3 : . . .
16.8
20.5
7.9 i
21.7
19 £
20 6 3 2 9 •
10.1
2.0 •
67.5
22.5 ;
43.0
28.4 ' . . .
29.0
26.6
21.1 34.4 :
43.0
33.9 i
70.2
40.4

2 Baked weight.

^ The rent problem is engaging public attention in New York City to & great extent and
has been investigated by two governmental
committees, one State and the othor municipal,
The mayor's committee on rent profiteering
has received over 10,000 complaints from dissatisfied tenants since its organization in
April. Landlords assert that advances are necessary because of increases in taxes, in janitor's wages, in coal, and in materials and labor
for repairs. Various estimates of what would
be a "reasonable" increase are 10 to 20 per
cent.

JULY 1,

1919.

FEDERAL RESERVE BULLETIN.

635

Because of the scarcity of housing accom- result of inflation, but undoubtedly there is an
modations, the tenant seems to have small actual increase even on the prewar money value
opportunity to move into cheaper apartments. basis.
A further disturbing element is the fact that
THE NATIONAL DEBT.
many landlords are refusing to give a year's
lease under the new rates.
But still it will be asjked what about the debt
of the Nation exclusive of that part of it due
from foreign nations. This represents loan of
Effect of the War on this Country's Real Wealth.1 wealth by part of the people of the Nation,
This Nation's debt is said to be 26 billions of sixteen or twenty- millions of them, to all the
dollars or more. About 10 billions of it repre- people of the Nation. It has been used by the
sents loans to foreign governments, which is a Government. The war has been paid for as
claim on their wealth and will be repaid with far as the bills have been presented. The debt
interest. The remaining sum is huge. It is a represents mainly a credit relation. In lending
third of the total prewar estimated wealth of a it to the Government the sixteen or twenty
nation like France. Does it represent so much millions transferred their rights to use it to all
absolute abstraction of wealth from this coun- the people. It was differently distributed
try? Has that much of the Nation's wealth throughout the community and there was not
been blown into the air? Is the Nation an actual dissipation or "abstraction of this
amount of wealth. The Government will have
poorer by that amount ?
to repay it. It will take wealth from all the
individuals and redistribute it to the sixteen or
USE OF RESOURCES.
twenty millions to whom it will be due with
We have used vast quantities of coal, of iron, interest. This will be a second rearrangement
and its manufactured products, of lumber, and of the wealth of the country. The significant
other materials. Much of it is a total per- fact is that there seems to be in the country as
manent loss. It can not be recovered. A very large a volume of real wealth as when the
large part of it, however, has gone into camps country entered the war, possibly a larger
and aviation fields, Government buildings, volume. The fact that this is true and that
ships, naval vessels, trucks, ordnance and Gov- the country has paid the war bills to date with
ernment plants, such as nitrate and munition the incidental credit relations described, can
plants, has been conserved and will be a great be accounted for only by the large productive
asset. There was an increase in production activities of the Nation and the enormous conand much saving. During the war labor was servational activities,
highly organized and was strenuously utilized.
The Nation conserved as never before. The
BURDENS OF WAK*
end of the war finds us with perhaps more
wealth than when we entered it. We have as
No one should infer from such a statement
much land as ever, more of it in cultivation,
and most of it as well cultivated as in normal that war does not impose burdens or that it is
times. We have more of all the leading classes a good thing economically. As pointed out in
of live stock. Work animals increased by over the beginning, there has been a permanent
a million and a half, cattle by six millions, dairy dissipation of many forms of wealth which
cows by two and three-quarter millions, ancl might have been used for developmental purswine by fourteen millions. We have as many poses. The labor that went into war services
railroads and have them in about as good con- for purposes of destruction might have been
dition as when the war broke out; as many employed for other purposes, and as a result
electric lines in as good condition; as many the increment of the real wealth of the Nation
factories, perhaps as well equipped; more resi- might have been much greater than it is, prodences and apartments; as many office build- vided, of course, there had been equal conservaings; and many more ships. Our banking re- tion of wealth. This probably would not have
sources have largely increased. A consider- been the case, because the conservation arose
able part of the increase probably appears as a from patriotic impulse and the necessity of the
occasion. Furthermore, the setting up of
1
credit relations and the readjustment of
Statement by the Secretary of Agriculture.




636

BULLETIN.

FEDEKAL

JULY 1, 1919.

wealth holdings by individuals due to loans and natural increase. The annual increase will
to unusual taxes produced adverse economic probably be greater from now on with our
conditions, as will also the reverse process larger population. There will also be additions
involved in the transfer of wealth by continued to the population, perhaps not so large as
high taxes from all the people to the minority formerly, through immigration. We shall probthat made its wealth available to the Govern- ably gain from twenty to twenty-five millions
ment for war purposes. This process will of people in the next 20 years. This Nation
extend over a long period and will at least will be in better position to effect the liquidaproduce many psychological disturbances, as tion of the debt—that is, the transfer of wealth,
well as many individual hardships. However, with interest, from all to some, and to make
this Nation is growing rapidly in population and industrial advances—than any other in the
in wealth. I t gained a population of 24 million world. I t can meet any reasonable domestic
between 1900 and 1915. I t has probably and foreign financial demands if our people
gained four and one-half millions since the will work and save, especially as they worked
breaking out of the European War. Its bank- and saved during the war.
The results of the agricultural operations
ing resources increased from about 10 billions
in 1900 to 19 billions in 1915. These have during the war are indicated in the attached
greatly increased during the war. We aretables. Notice the aggregate statistics for
doubtless gaining 800,000 people a year from cereal production, live stock, etc.
/. Production.
[000 omitted.]
P r e w a r ann u a l average,
1909-1913.

Cereals
Potatoes (sweet and Irish)
Meat
Dairv x'roducts:
(a) Factory butter
(b) Factory cheese
(c) Condensed milk

bushels..
do..
pounds

4,801,000
414,000

1915

1914

14,983,000
460,000
15,587,000

6,011,000
435,000
16,721,000

786,000
377,000
875,000

do...
do..
do..

1916

1917

1918

4,793,000
355,000
17,893,000

5,681,000
526,000
16,325,000

5,508,000
486,000
19,495,000

700,000
315,000
998,000

744,000
372.000
1,354,000

793,000
3,53.000
1,675; 000

i Does n o t include grain sorghums, which was probably about 100,000,000 bushels.

II. Exports for fiscal years ending June SO.
[000 omitted.]

Prewar ani nual average,
1910-1914.

1916

1917

1918

419,000
1,828,000

387,000
1,872,000

318,000
2,271,000

13,487
44,394
159,600

Cereals
Meats
Dairy products:
(a) Factory butter
(&) Factory cheese.
(c) Condensed milk

26,835
66,000
259,100

17,736
44.331
529,750

The production and export figures for wheat for the years indicated are as follows:
EXPORTS, FISCAL YEARS ENDING JUNE 30.

PRODUCTION.

Bushels.

Bushels.

Prewar annual average (1909-1913)
1915
-.
1916
1917
1918




687,000,000
1,026,000,000
636,300,000
636,650,000
917,000,000

Prewar annual average (1910-1914)
1915
1916
1917
1918

105,000,000
333,000,000
243,000,000
204,000,000
133,000,000

JULY 1, 1911).

FEDERAL RESERVE BULLETIN.

Branches of American Concerns in Foreign
Countries.

A committee of Government experts investigating the general subject of branches of American concerns in foreign countries recently submitted a report, the salient portions of which
read as follows:
The committee was appointed for the purpose of examining the question whether the
United States should adopt the policy of promoting or of discouraging the establishment by
American concerns of branches in foreign countries and of considering any collateral questions
arising in connection therewith.
The first distinction that the .committee
believes should be brought out is that of the
nature or character of the enterprise seeking to
establish a branch or branches in foreign countries. For purposes of discussion, American
enterprises desiring to establish branches in
foreign countries may be divided into the
following four classes: (1) Banking; 7 insur(2)
ance; (3) trading; (4) manufacturing.'
The statement of this classification makes it
evident that different considerations arc presented according to the nature of the enterprise
involved.
BANKING BRANCHES.

There can scarcely be any doubt that it is
highly desirable that American banking concerns should establish branches in foreign
countries, and that consequently the National
Government should lend to them every legitimate assistance in its power. The establishment of such branches represents no promotion of the interests of such countries at the
expense of the United States: nor do such
branches compete in any way with American
interests. They represent, on the other hand,
an increase in the facilities of international
trade, an investment of American capital
abroad, and, both directly and indirectly, promote foreign trade and the extension of
American influence generally. It is thus a
matter of congratulation that energetic efforts
on the part of American banking concerns in
this direction are now so much in evidence.
This movement is being closely followed by
the Federal Reserve Board, and information
regarding the creation of such branches is
given in the Monthly Bulletin published by
that body.
The committee gave some consideration to
the matter of the character of the agencies
it was most desirable that the banks should




637

have in foreign countries—whether they should
be branches strictly speaking, independent
banks affiliated with American banks, the
capital of which was supplied wholly or partly
by the American banks, or local banks already
in operation, control of which was secured
through a purchase of the majority of their
stock. The committee did not, however, feel
that it was a part of its duty to seek to formulate any definite conclusions on this point.
Generally speaking, it. did recognize, however,
the advantages resulting from the association
of local capital with the undertaking and the
securing of the cooperation of natives through
their representation on the board of directors
or in the management of the branches.
Another observation which the committee
desires to make in reference to this subject has
regard to the importance of foreign branches
of American banks being, as far as practicable,
under the management of American citizens
and the employment of American banking
methods. It has come to the attention of the
committee that there has been considerable
complaint on the part of Americans doing business"1 in foreign countries that the foreign
branches of American banks have, in many
cases, been placed in charge of or been largely
staffed by persons who are neither American
citizens nor citizens of the countries in which
the branches were located, and that usual
American banking sendees have not always
been given. As banks are constantly in
receipt of valuable information regarding investment and trade opportunities, it is highly
desirable that the officers to whom this information comes should, as the result of their
nationality, be interested in the promotion of
the interests of the United States rather than
those of third countries.
INSURANCE BRANCHES.

The considerations involved in the establishment by American insurance companies of
branches in foreign countries are analogous to
those surrounding branch banks. The establishment of such branches means the'investment abroad of American capital and the
extension of American influence generally
without in any way detracting from the development of the industry in the United States.
The creation of such branches is thus to be
encouraged in every legitimate way. Here
again attention should be directed to the desirability of such branches being as far as is
practicable in charge of American citizens.

638

FEDERAL RESERVE BULLETIN.
TRADING BRANCHES.

Two classes of trading branches may be distinguished: (1) Branches of American importing houses; and (2) branches of American manufacturing concerns trading in foreign countries for the purpose of handling in such
countries the sale of their products. In both
cases the practice is highly desirable from the
standpoint of American interests, especially if
the branches are placed in charge of American
citizens. Trade handled by houses whose primary interest is in the United States offers a
promise of permanence that is impossible in
the case of trade handled by a European house
or even by a local house. It is evident, however, that branches of American concerns engaged primarily in handling American goods or
in the export to the United States of noncompetitive goods deserve more active assistance
than branches engaged in the export to the
United States of goods entering into competition with goods produced in the United States.
During the war, and especially after the
signing of the armistice, a serious question was
presented as to the rights of trading branches
in foreign countries to continue their work
under conditions of equality with the firms of
the countries in which they were located.
England, France, and Italy all took measures
looking to the control of imports and exports.
This took the form of creating consortiums or
committees for the leading classes of commodities and providing that all imports or exports,
as the case might be, should be handled by
them. As only firms of the nationality of the
country were given representation on these
bodies, and such firms naturally were interested primarily, if not exclusively, in promoting
the Interests of their own nationals, the result
was that branches of American firms found that
they were excluded from doing any business.
Though the situation is now much better
than it was, the danger still exists that foreign
countries, in their desire to lessen the influence
of alien interests in their economic life, may
take steps that will put branches of American
trading houses in a position where it will be
difficult for them to continue in operation.
Should such a situation arise; it will be necessary for the United States to take action that
will assure to branches of American concerns in
foreign countries the same rights or equal privileges as are accorded to branches 01 firms of
such countries in the United States, or, failing
this, to give consideration to what retaliatory
measures may be taken by our national or
State governments.




JULY 1,

1919.

MANUFACTURING.

The question of the desirability or undesirability of promoting the establishment by
American manufacturing concerns of branch
factories in foreign countries is one presenting
more complicated and conflicting considerations than in the case of the other classes of
branches. Here we have the case of firms pursuing the policy of manufacturing goods in
foreign countries instead of producing them in
the United States for export to such countries.
The result is apparently a detraction from the
employment of labor in the United States and
from the latter's export trade. The reasons
for the adoption of this policy by American
firms are the avoidance of the payment of foreign import duties, the use of cheaper labor,
more ready access to raw materials, etc.
If the foregoing represented all that was involved there would be little question but that
the establishment by American manufacturing
concerns of branches in foreign countries was
something to be discouraged. Examination,
however, shows that there are other factors
which make the contrary policy advisable in
the majority of, if not in all, cases.
In the first place it will be found that in
most cases the question is not one of supplying
a foreign market with goods manufactured in
that country or in the United States, but that
of supplying the market by the first method or
not at all. In some cases the duties to be paid
on imports into such countries or patent or
other regulations may be prohibitive and diplomatic representation may be considered inexpedient or found ineffective. In other cases
the advantages of manufacturing in such
countries may be such that if the United
States does not establish factories other countries will. An excellent illustration of this
condition of affairs is now presented in the
cotton-manufacturing industry of China. Japan has within the last year or two begun to
acquire or build cotton factories in China in
order to make use of the cheaper labor of
that country. It would be highly desirable
that American cotton firms should follow suit.
A somewhat similar situation exists in the
case of the branch factory in Japan of one of
our leading electric companies. This establishment manufactures mainly electric bulbs and
does not ship its product to the United States.
As a result of the wide distribution of cheap
electric bulbs throughout Japan it has been
stated that more electric goods of American
manufacture have been shipped to Japan since
the establishment of the branch factory there.

639

FEDERAL RESERVE BULLETIN",

JULY 1, 1919.

Still a different case is presented by some
American houses that control the manufacture
of buttons, brushes, surgical instruments, and
other articles in Japan for shipment of their
finished products to the United States. The
output enters into active competition with
goods manufactured in the United. States. Is
it desirable to give them active assistance ? It
may be argued that such a course militates
against successful manufacture in the United
States and the consequent advantages from
larger employment of labor. On the other
hand, it may be argued that if in these cases
manufacture within the United States is
desirable the Government should equalize
competitive conditions through the imposition
of a protective duty; that in the absence of
such a duty the goods are bound to be manufactured abroad, and it would be better to control
the output through the operation of a branch
house in the foreign country than to let the
business fall completely into foreign hands.
In general it should be stated that there are
many advantages resulting from the establishment of branch factories in foreign countries by American concerns. The more important of these are the indirect promotion
of trade between the United States and those
countries and the extension of American interests generally. In almost all cases the
branch factories* will be equipped with American machinery and more or less use will be
made of American supplies. The Americans
employed in such branches will naturally look
to their own country for the satisfaction of
their personal needs, and their use of American
articles serves to introduce them to foreign

consumers. These considerations may not
have great weight in the case of industrially
advanced countries such as England, Canada,
etc. They are, however, of prime importance
in the less developed countries. It is the opinion of the committee that in all such countries
the establishment of branch factories by American firms should be looked upon with favor if
not actively promoted. This form of investment of American capital abroad, carrying
with it, as it does, direct ownership and management by Americans, is far preferable to that
which takes place where the investment is in
the form of loans.
SUMMARY.

To sum up, it is the opinion of the committee that, if all the results, indirect as well as
direct, are taken into consideration, the
American Government,should look with favor
upon the establishment of branches of all sorts
of American enterprises in foreign countries.
The extent to which it should actively exert
itself in behalf of such concerns is, however, a
matter which should depend upon the circumstances of each case.
Condition of Buenos Aires Banks at the End of
March.1
The following statement transmitted by
Ambassador Stimson, at Buenos Aires, Argentina, shows the condition of the principal banks
of that city on March 31, 1919, the data having
been furnished the Embassy by one of the local
banks. All amounts are expressed in United
States currency. The capital in each case
represents the total in Argentina:
I'iscount
and overdrafts.

Bank.
5503. 293,000
120 i 952,000
112] 409,000
76, 371,000
56. 366,000
33,' 812,000
29, 937.000
29, 476;000
27, 480,000
25, 583,000
23, 141,000
20, 277,000
19, 316,000
18, 596,000
17, 192,000
16,,039.000
1-1,,112,000
13;,817,000
10;,592,000
,845,000
,810,000
,181,000
,018,000

Banco do la Nacion
Banco Pro vineia
Banco Espanoi
Londres y Rio de la Plata
Italia y Rio do la Plata
Nuc vo Banco Italiano
Banco Britanico
Anglo S a d Americano
Frances e Italiano
National City B a n k
First National Bank of B o s t o n .
Banco Ilolandcs
Frances del Rio de la Plata
Itaio-Belga
Galicia y Buenos Aires
Ataman" Transatlantico
Comerciai del Azul
Comer cial Italiano
Popular Argentino
Banco Gcrmanico
Londres y Brazil
Argentino Uruguayo
E s p a a a y America
1
2
3

Total cash.

$255,211,000 3172,787.000
100,845,000
45,591]000
110,320,000
27,157,000
37,838.000
36,238]000
57,895]000
11,662,000
27,852,000
8.918,000
19,662,000
10'.-151.000
31,313,000
10',-106] 000
13,430,000
14,718,000
30,888,000
5,623]000
18,540,000
7,218,000
31,634,000
5,563,000
13,685,000
12,393,000
11,287,000
6,840,000
17,590,000 i
3,986.000
11,288,000 !
8,301,000
13,039,000 !
2,621,000
11,437,000
4,027,000
14,69-1,000
3,057,000
7,484,000
3.191,000
7,232,000
3]010,000
4.687,000 i
1,268,000
836,000 !
454,000

CaDital.
356,356,000
26,596,000
41,934,000
4,110,000
9,671,000
2.128,000
4]387,000
4,825,000
2,417,000
1,000,000
1,000,000
3,768.000
13,539]000
967,000
7,323,000
3,530,000
511,000
2,128,000
4,474,000
1,672,000
2,056,000
898,000
576,000

Percentage of
cash to
deposits.*
34
37
24
47
20
26
34
35
53
22
31
27
64
30
23
52
18
29
28
32
30
24
44

Commerce Reports, June 19, 1919.
Average percentage of cash to deposits, 33 per cent.
The deposits of the Banco de la Nacion include $71,462,8 5 "clearing" deposits of the other momber banks, this amount, therefore, appearing
twice in total of bank deposits.




123722—19

5

640

JULY 1, 1919.

FEDERAL RESERVE BULLETIN.

Licenses Issued for Export of Coin, Bullion, and bullion, and currency.

Currency.
The following table shows the amounts of
licenses granted by the Federal Reserve Board
from September 7, 1917, to June 7, 1919, covering exports from the United States of coin,

Approximately 1,142
licenses were issued for the shipment of gold,
1,500 licenses for the shipment of silver, and
1,817 licenses for the shipment of currency
other than United States gold and silver certificates. Some 775 applications of alt classes
were declined.

Amounts of licenses granted by the Federal Reserve Board from Sept. 7, 1917, to June 7, 1919, covering exports from the
United States of coin, bullion, and currency.
Currency of the

•

Othercurrency.

Total.

Gold.

North America:
Canada
Mexico.
West Indies

$32,639,277.87
48,033,946.96
177,531.80

.

Silver.

$9,656,011.43
9,924,964.99
610,180.67

33,900,946.42
23,969,947.58
78,107,189.00

£21,439,382.48
1,394,090.66
6,467.56

S674,059.48
51,445.81
206,854.00

568,309,677.68
83,374,396.00
79,108,223.03

which exported.

80,850,756.63

20,191,157.09

105,978,083.00

22,839,940.70

932,359.29

230,792,298.71

Central America:
Panama
Other points

2 007.38
6,586.35

94,000.00
497,066.00

2,021,000.00
3,349,910.00

98,175.00

33,250.00
238,019.10

2 150 257 38
4,189,756.45

Total

8,593.73

591,066.00

5,370,910.00

98,175.00

271,269.10

6,340,013.83

17,510,142.95
785,000.00
1 142 50
15,553,902.35
13,152,520.60
400.00
4,620,058.37

11,534.72

22,750.00
65,000.00

53,000.00

607,950.00
73,000.00
940,000.00

620,365.10

125,666.66

6,683,629.69
157,074.07

216,200.00
840,000.00
9,089.00

5,000.00

19,108.60
43.60
1,321.00
4,886.70
192.25
500,005.00
448,323. 75
1,414.80
1,552.00
5,000.00

30,810.00

2 745.00

17.594,346.27
'785,043.60
70 208 50
15,558,7S9.05
14,434,027.95
573,405.00
6,133,632.12
217,614.80
7,525.181.09
176.163.07

58,463,870.53

1,257,568.72

1,713,700.00

981,847.70

051,425.10

63,068,412.05

25.00
61,673.92
74,460.46
357.50
4,278.00

75,000.00
49,340,730.00
1,648,311.72
2,000.00

11,826.00
2,084,093. 33
1,896,950.92
53,591.81

90,261.00
158,282.00
4,254,509.20
4,450.00

15,500.00

112,700.00

27,460.00
438.00
102,142.50
280.00
39,410.11
8,708.00
400,000.00

392,073.64

5,723.00
4,455,294.00
160.00
225.00
1,340.00

1,453,638.00
10,467,855.00
56.347,426.49
1,700,000.00
500,300.00
2.232,272.69
10,000.00
52,959.14
500.00
883,852.80
460,032.00
368,000.00

180,675.00
13.000.00
292;703.80

1 630 750.00
62,112,634.25
64,221,658.79
1,760,399.31
504,578.00
2,667,306.33
10,438.00
1,818.324.64
4,456'. 274.00
1,104,097.91
'482,065.00
1,174,743.80

Total

South America:
Argentina . .
Bolivia
Brazil
Chile
Colombia
Ecuador
Peru
TJrucruav
Venezuela
Other points

.. ..

Total
Europe:
Denmark
France....
Great Britain
Holland..
Italy
Norway . .
Portugal
Russia
Spain. .
Sweden
Switzerland
Other points

.

i, 657,666.66
200.00

ioo.66

250.00

500.00

Total

4,603,536.88

74.476,836.12

52,851,541.72

4,624,900.67

5,386,454.64

141,943,270.03

Asia:
China
India
Japan
Other points

197,717.10
3,888,272.00
1,344,789.70
357,962.50

62,150,407.90
338,704,003.35
500,000.00
4,328; 179. 76

15,680.00
60,500.00
55,100.00

2,630.20
810.00
101,535.43
61,500.00

563.391.52
2.786', 025.52
598,790.00
31,250.00

62,929,892.72
345,379,110.87
2,605,615.13
4,833,992.26

Total

5,788,741.30

405,682,651.01

131,286.00

166,475.63

3,979/457.04

415,748,610.98

1,598.00

13,330.00

81.00

697. 50

250.00

15,956.50

20.00
2,608,639.30

2,167.50
537,500.00

5,650.00
400.00

45,802.87
4,264.20

10,815.88
370,747.00

64,456.25
3,521,550.50

1,220.00

3,727.00

728V, 985.00

.»

1,025,022.00

1,759,104.00

2,609,879.30

543,394. 50

735,035.00

50,217.07

1,406,584.88

5,345,110.75

152,326,976.37

502,756,003.44

160,780,638. 72

28, 762; 254. 27

12,627,800.05

863,253,670.85

Africa
Australasia:
Australia
Java
Other points
Total
Grand total




JULY 1, 1919.

FEDERAL RESERVE BULLETIN.

641

Operations of the Netherlands Bank and the Java
As elsewhere in Europe, the outbreak of the
Bank During the War.
war was followed in the Netherlands by the

Leadership in financial and foreign trade
activities of the Netherlands during the period
of the war was exercised by the Netherlands
Bank, whose annual reports and weekly statements form the basis of the following discussion.1
Extraordinary demands at the outbreak of
the war for currency and for loans caused the
bank to obtain a royal decree reducing the
minimum metallic cover required for its deposit and note liability from 40 to 20 per cent.
The ratio did actually fall as low as 32.6 per
cent on October 16, 1914, but rose again above
the 40 per cent level by December 12 of the
same year, and since that date has remained
above that percentage.
In order to protect its gold reserve, the bank
also induced the Government to obtain authority to release the bank from the obligation
to exchange its notes for gold on demand. No
occasion to exercise this authority has arisen
up to date. A strict control over gold exports,
however, was undertaken and exercised by the
government at the bank's suggestion.
By referring to the table showing the principal asset and liability items of the Netherlands
Bank and to the curves based on these figures
it will be seen that the bank's gold reserve increased steadily from September 26, 1914, until
April 27, 1918, and on that date reached the
maximum of 726,000,000 florins, or about four
and one-half times the prewar amount. It is
worthy of note that large increases in gold
reserves are reported by the Netherlands Bank
in May, 1915, and in June, 1917, both months
during which heavy losses of gold are shown by
the German Reichsbank. It is well known
that the Reichsbank shipped gold to Holland
in an effort to improve the exchange position
of the mark.2 Since April, 1918, the bank's
gold policy apparently underwent a change.
During the most recent period the bank invested all or nearly all the "earmarked" gold
held for its account in the United States, the
effect of this action being a reduction in its
gold reserve. On May 31, 1919, the gold reserve stood at 662,000,000, or about 64,000,000
florins below the high-level mark of April, 1918.
1 Pe Ncdcrlandschc Bank. Verslagen door den president en door de
commissaricn. (The Netherlands Bank. Reports presented by the
president and the commissaries.) 1914-15 to 1917-18.
For description of the organization of the Netherlands Bank and of
banking in the Netherlands in general, see Curt Eisfeld: Das Niederlandische Bankwescn. The Hague, 1916.
2 See Federal Reserve Bulletin, May, 1919, p. 430.




hoarding of silver and a heavy demand for
currency in small denominations. The amount
of silver in the vault of the bank declined from
8.2 millions on July 25 to 2.3 millions on
August 29, 1914, then recovered somewhat,
only to fall again until on February 27, 1915,
only 1.2 millions of silver w^as reported on hand.
To meet this situation and to satisfy the popular demand the Government issued 2.50 florin
i
'silver bons." During the last three years the
bank's silver reserve was at no time less than
6.5 million florins, as shown by the table on
page 644. At a later date the Government
issued "silver bons" of the denomination of 1
florin. In order to replenish its supply of
silver the bank made purchases of the metal in
Europe and in America.
During the panic conditions prevailing in
August, 1914, the Netherlands Bank opposed
the declaration of a moratorium and offered
instead to come to the aid of private banks
and industrial establishments which were hard
pressed for funds. During the first month of the
war, the bank's loans, discounts, and advances
in current account increased from 130 million
florins on July 25 to 308 millions on August 29.
Loans and advances continued to grow until
October 31, but from that time they declined as
a result of stagnation in the country's industries.
The stock exchange was closed until Februaryr
1915; business was at a standstill, and the leading banks of the country felt called upon to
organize an association, under the leadership
of the Netherlands Bank, to aid such persons
and establishments as were unable to obtain
relief through ordinary channels. The bank's
loans and discounts continued comparatively
light throughout the greater portion of the
period of hostilities, in spite of the inclusion,
under this item of the at times large holdings of
Treasury certificates. It was not until after
the signing of the armistice last November that
loans and advances surpassed the high figure
of August, 1914. During 1919 a high average
amount has been maintained, though with considerable fluctuations.
Notes in circulation increased at a rapid rate
throughout the period under review. On July
25, 1914, the circulation amounted to 310 million florins and on May 31, 1919, to 1,026 millions, or more than three times the amount at
the earlier date. This expansion of paper currency, is due in part to the withdrawal of gold
from circulation, in part to large scale Govern-

642

FEDERAL RESERVE BULLETIN.

mcnt borrowing, and also to the tendency
shown by many business men in the Netherlands
to hold notes of large denominations as a safe
and absolutely liquid form in which to keep
their funds. By having these notes in their
possession they felt that they would be able
to resume business operations at a moment's
notice as soon as conditions would permit. It
is to be noted that since the cessation of hostilities last November nearly 60 millions of notes
have been withdrawn from, circulation.
FOREIGN TRADE AND FOREIGN EXCHANGE
OPERATIONS.

JULY 1,

1919.

Rates of exchange on all the belligerents were
in favor of Holland during most of the period
of the war, as will be seen by reference to the
attached table. As a result there was a great
influx of gold into the country, in spite of the
export prohibitions in force in practically all
the European belligerent countries. The Netherlands Bank took upon itself the task of purchasing all of the gold offered in settlement of
foreign accounts, provided the objects of the
gold consignments were clearly explained to
the bank, and were the result of strictly Dutch
business transactions consistent with the interests of the country. The Netherlands Bank's
gold policy was to pay 1,648 florins per kilo fine,
or full mint value, for the gold it pxirchased, a
policy entirely different from that pursued by
the Bank of Spain and the Swedish Riksbank.
Holland's exports during the period of the
war exceeded her imports, and the bank was
called upon to assist commercial institutions
in realizing on their foreign balances. In doing
this, however, the bank insisted on strict supervision of the nature of each transaction. An
arrangement was made with England by which
Dutch balances were paid in English one-year
Treasury bills at a rate of £1 sterling for 12
florins. The Treasury notes would be deposited with the Bank of England's Amsterdam
Branch, and equivalent amounts of pounds
sterling would be placed at the Netherlands
Bank's disposal in England. This arrangement
tended to steady the rate of sterling exchange
and to decrease the flow of gold from England
into Holland.
While the florin was at a premium in terms
of the monetary units of belligerents, it was
often below par in exchanges on neutrals, such
as Switzerland, Spain, Denmark, Norway, and
Sweden. In order to maintain the value of the
florin the Netherlands. Bank exported gold to
these countries, but it often encountered opposition, as all these countries had large stocks of
gold and were in need of goods which Holland
was not in a position to supply. There was a
protracted controversy with Sweden about the
acceptance of Dutch gold at par in settlement
of balances due to Sweden from Holland. In
the end an agreement to that effect was obtained through the instrumentality of the
Netherlands Bank.

At the outbreak of the war, Dutch firms were
indebted for large amounts to foreign countries,
and, owing to the disorganized condition of the
foreign exchanges and to the great difficulty of
shipping gold, considerable embarrassment was
felt by houses engaged in foreign trade. The
Netherlands Bank came to the assistance of the
importers by selling as many drafts on foreign
countries as its gold held abroad would permit;
but the problem of foreign trade remained
serious. When in 1915, for instance, American
buyers purchased their usual supply of tobacco
from Holland, they were unwilling to pay for it
at the prevailing rate of exchange which was
unfavorable to the dollar. Gold shipments
were out of the question on account of the
great risk, the consequent high rates of insurance, and the reluctance on the part of
shipowners to carry gold. An arrangement was
finally made by which Dutch commercial banks
accepted drafts in florins in payment for the
tobacco, while the Netherlands Bank agreed to
discount these drafts.
Another matter in which the Netherlands
Bank came to the assistance of foreign trade
was in connection with payments to Dutch
investors in America of interest and dividends
coming due, also for diamonds andflow^erbulbs
purchased in Holland by Americans. The
Netherlands Bank, undertook to take up such
claims against America at a reasonable rate of
exchange, and to arrange that American debtors
deposit amounts due to Dutch interests in " earmarked" gold with specified institutions in
America. Including the amount held by the
New York Federal Reserve Bank, the Guaranty
Trust Co. and the National City Bank, the gold
GOVERNMENT LOANS.
held in America by the Netherlands Bank was
in excess of $10,000,000, nearly all of which
The Netherlands Bank took a prominent
has now been invested for the Netherlands part in helping the Dutch Government both by
Bank in prime indorsed bank acceptances.
direct advances of funds and by assisting it in




JULY 1,1919.

FEDERAL RESERVE BULLETIN.

643

the flotation of its popular loans. A 5 per cent "earmarking" gold by most of the belligerent
loan of 410 million florins was floated by the countries seriously interfered with Java's busiGovernment in 1915, and one of 625 millions ness activities. The Java Bank came to the
in 1918. In addition two loans for the Dutch assistance of local planters by grouting them
Indies were consummated in 1915 and 1916. loans within the limits of the costVf production,
The bank undertook to lend money to holders and made arrangements through Amsterdam
of Government obligations up to 95 per cent with England and other countries in connecof their face value in case of Netherlands bonds tion with the settlement of balances due to
and up to 90 per cent in case of Colonial bonds. Java from abroad.
In addition to assistance in connection with
The Java Bank increased its gold reserve by
the loans and to direct advances to the Gov- purchasing the output of local mines. It had
ernment bearing no interest, which averaged considerable difficulty in preserving a supply of
over 10 million florins during the period uncler silver in view of the tendency to Hoard it, and
review,, the Netherlands "Bank discounted induced the colonial government to issue paper
Treasury notes for other banks, the amount of currency of small denominations. The bank's
such notes in the bank's portfolio rising as discounts and advances declined greatly during
high as 70 million florins in April, 1917.
the first three years of the war, but show very
heavy increases during the year ending March
THE JAVA BANK.
31, 1918, and especially during the latest fiscal
year, when the reestablishment of shipping
In conjunction with the discussion of the greatly relieved the business situation in Java.
Netherlands Bank of issue, a brief statement
The Java Bank's policy of keeping half of
of the operations 1of the Java Bank, based on its gold reserve in foreign countries, where it
its annual reports and weekly condition state- can be used to buy exchange bills when a
ments, was considered appropriate in view of contraction of circulation is desired, and to
the close connection existing between the two sell them for gold when an expansion is
institutions and the importance of Jaia's thought proper, makes the item "foreign bills"
products to the commerce of the mother in its balance sheet of special significance.
country. A table showing the condensed Throughout the period of hostilities the amount
balance sheets of the Java Bank at the end of of foreign bills held by the Java Bank was
March, 1915 to 1919, is attached.
unusually large owing to the difficulty of exJava's prosperity depends largely on her changing them for gold or commodities. The
exports of sugar, tea, tobacco, coffee, and other bank's circulation shows a growth from 118
agricultural products. The difficult}7 of ob- million florins in 1915 to 211 millions in 1919,
taining shipping space, together with the un- while its deposits increased from 19 millions in
settled condition of the foreign exchanges and 1915 to 123 millions in 1919. The latter figure
the prohibition of gold exports and even of is more than twice as great as that for March
* Annual Reports of the President of the Java-Bank and the Board of 31, 1918, and indicates the revival of Java's
Directors. 1914-15 to 1917-18. Also: The Java Bank—A short descrip- business activities since the termination of
tion of its organization, operations and general policy. (Published by
hostilities.
the bank.)




644

FEDERAL RESERVE BULLETIN.

JULY 1,

191S.

Principal asset and liability items of the Netherlands Bank.
[Figures for the end of each month in thousands offlorins(par value offlorin=40.2cents)].
Metallic reserve.
Cold.

July 25..

Notes in
circulation.

1915.

1916.
J a n . 29..
Feb. 26..
Mar. 25..
Apr. 29..
May 27..
June 24..
July 29..
Aug. 26.
Sept. 30..
Oct. 28...
Nov. 25.
Dec. 30...

8,228
2,298
4,894
4,310
4,884
3,492

170,341
164,444
162,227
175,452
186,067
211,611

238,445
261,777
289,194
293,626
316,831
347,136
373,458
378,437
385,227
399,824
4.11,498
429,182

1,715
1,245
2,027
2,151
3,128
2,380
2,297
2,322
2,273
2,522
3,777
6,195

240,160
263,022
291,221
295,777
319,959
349,516
375,755
380,759
387,500
402,346
415,275
435,377

466,837
495,112
510,546
629,896
540,030
552,026
581,564
585,813
587,361
583,642
584,591
587,602

6,059
5,249
4,659
1,873
4,486
8,407
10,784
8,231
6,597
6,531
6,725
6,985

500,361
515,205
531,769
544,516
560,433
592,348
594,044
593,958
590,173
591,316
594,587

589,561
591,555
590,515
596,527
596,273
626,729
633,303
656,910
675,917
685,231
692,377
698,233

6,814
6,577
6,917
6,858
7,393
7,454
7,247
7,375
7,264
7,386
6,883
7,028

596,375
598,132
597,432
603,385
603,666
634,183
640,550
664,285
683,181
692,617
699,260
705,261

146,740
144,930
164,386
174,635
154,868
131,791
119,975
106,571
129,683
146,991
158,596
189,268

707,000
714,678
722,184
725,770
721,439
717,559
715,123
707,424
708,708
706,477
693,392
689,441

7,176
7,295
7,285
7,274
7,799
7,692
7,793
7,953
8,042
8,154
8,230
8,545

714,176
721,973
729,469
733,044
729,238
725,251
722,916
715,377
716,750
714,631
701,622

166,629
146,604
134,903
200,446
181,839
165,905
164,438
172,864
230,200
262,681
369,654
383,206

684,369
677,319
669,334
663,348
661,969

8,791
9,105
9,750
8,114
7,938

693,160
686,424
679,084
671,462
669,907

277,287
244,921
211,191
192,559
166,619
151,375
150,422
175,415
162,992

161,358
147,768
141,240
179,757
96,878
122,408
105,622
140,646
166,278
162,187
134,509
152,191

12,444
7,379
14,761
14,078
12,968
4,240

20,188
8,435
6,752
3,251
843
667

310,437
444,233
440,845
478,986
481,145
473,107

14,948

129,633
307,861
306,264
319,355
314,742
288,138

162,113
162,146
157,333
171,142
181,183
208,119

Jan. 30..
Feb. 27..
Mar. 27..
Apr. 24..
May 29..
June 26..
July 31...
Aug. 28.
Sept. 25..
Oct. 30...
Nov. 27.
Dec. 31...

667
652
401
347
171
2,307
3,117
3,060
3,553
4,278
4,230
2,506

457,055
459,084
470,086
485,131
483,850
512,708
513,706
522,056
569,850
565,479
577,056

4,313
3,920
4,280

581,722
577,978

8,557
8,084
8,020
7,873
8,176
8,007
8,014
8,024

681,864
636,983
630,911
661,679
657,109
700,782
730,338
736,284
758,379

8,091
8,097
8,209
8,084
8,110
7,807
8,006
8,228
7,913
8,113
8,202
8,039

732,759
732,694
745,649
773,592
750,550
764,224
767,152
766,667
808,812
824,973
852,847
890,273

8,141
8,195
7,164
3,816
7,478
7,753
8,676
8,366
7,802
8,690
7,990

871,586
845,856

14,168
3,414
7,659
2,760
13,515
5,105
14,912

4,831
14,863
14,479
12,219
10,987
12,779
14,961
1,578
5,406
8,719
11,577

I
1917.

Jan. 27...
Feb. 24...
Mar. 31...
Apr. 28...
May 26...
Juno 3 0 . .
July 28...
Aug. 2 5 . .
Sept. 29..
Oct. 27...
Nov. 24..
Dec. 29...
1918.
Jan. 26...
Feb. 23..
Mar. 30..
Apr. 27..
May 25...
June 29..
July 27...
Aug. 24.
Sept. 28.,
Oct. 26...
Nov. 30.
Dec. 28...
1919.




Total.

Foreign
bills.

1914.

Aug. 29.
Sept. 26.
Oct. 3 1 . .
Nov. 28..
Dec. 24..

Jan. 2 5 . .
Feb. 22..
Mar. 29...
Apr. 26...
May 31...

Silver.

Loans, dis- Advances
to Govcounts,
ernment
and ad- bearing no
vances.
interest.

357,018
274,749
315,436
365,692
351,521

14,899
12,871
11,658
14,952
4,588
12,463
13,341
14,046
11,766

11,259
"i4,"704'
4,566
12,663
13,616
14,903
"3," 729*
14,544
14,932
14,921
14,904

8,567
8,546 i
8,765]
27,080 !
27,582

919,162
927,335
909,750
922,122
971,557
985,317
1,082,164
1,068,947
1,053,508
1,000,194
1,011,223
1,034,638
1,025,962

THr£

ill

<%»
taa

CurreJ: GohiJtes 5.

1 ^*r

Curve?%.- £oans and ^Discounts.

Curved: J^/otes in €ircuia£io/i.

iZ

i

!

- —

I
ItOO
—

—1
i

1

_
.

—

1—

!
I
—

—

-

1000

•P^

/

—

—

—'

.1
/

300

/

1
p

i

eoo

if
/

1
i

-J
—
—

—

I 500

/

A
—

600

y

400

A

-i

<
-

v

4/

—i /

Ah

SIs

v
.....

—1

—

—
V-— /
-f

—

—2

\ /!
*

1

A

J s

t

f/

i
(

w

—




300
200
/DO

1 fi
\

0
/B/4-

!

/B/S

t

/I

i

s/1

d
1

500

r

/
7
/
/

--'

700

A

T

s

300

/
/

I

1316

1

19/7

I

IB/6

\

f&IB

\
|
01

646

FEDERAL RESERVE BULLETIN.

JULY 1, 1919.

Foreign exchange quotations at Amsterdam.
[Ju ly 30,1914, to Mar. 29,1918, from annual reports of the Netherlands Bank; Apr. 30,1918, to May 20, 1919, from De Nedcrlandscho Financier
and the Economisch-Statistische Berichten.]
London

Date.

12J.075 fl.).

1914.
July 30
Aug. 29
Sept. 30
Oct. 31
Nov.30
Dec. 31
Jan.30..
Feb. 27..
Mar. 3 1 . .
Apr. 30..
May 3 1 . .
June 30..
July 3 1 . .
Aug. 30..
Sept. 30.
Oct. 30.,
Nov. 30.
Dec. 3 1 . .
Jan. 3 1 . .
Feb. 29..
Mar. 3 1 . .
Apr. 29..
May 3 1 . .
June 30..
July 3 1 . .
Aug. 30..
6ept. 30.
Oct. 3 1 . .
Nov. 30.
Dec. 30..
Jan. 3 1 . .
Feb. 28..
Mar. 31..
Apr. 30..
May 3 1 . .
June 30..
July 3 1 . .
Aup. 30..
Sept. 29..
Oct. 3 1 . .
Nov. 30..
Dec. 29..
Jan. 31...
Feb. 27..
Mar. 28..
Apr. 30..
May 3 1 . .
June 29..
July 3 1 . .
Aug. 30..
Sept. 30.
Oct. 3 1 . .
Nov. 30..
Dec. 27..
Jan. 31..
Feb. 28.,
Mar. 29.
Apr. 30.
May 31.




12.02
11.92
11.99
11.94
1915.

12.16
12.32
-12.07
-12.02
-12.09
-12.04

49.40

2.45

47.35 -47.85
48.00 -48.50
47.60 -48.10

46.15 -40.25
40.05 -40.07^
39.20 -39.22?
40.20 -40.25
40.80 -40.82?>
40.80 -40.85"
40.924-40.95
41.40 -41.42:
41.874-41.92-;
41.824-41.85'
41.95 -42.00
42.05 -42.07*

1917.

1919.

New York
Berlin
Vienna
(100 marks= (100 crownscables
:$=2.4875fl.). 59.26 fl.).
50.41 fl.).

12.024-12.07* 4.7.85 -48.05
12. Oi -12.06" 47.30 -47.50
12.144-12.19* 47.60 -47.80
12.13"
47.60
12. on
46.22* 2.50
44.60"
11.951
43. 50
11.82
42.10
11.62
11.521-11.53 42.25 -42. 30
11.15 -11.151 40.40 -40.50
11.254-11.26 40.90 -40. 92*
10.79*-10; 80 38.75-38.85

1916.

1918.

Paris
(100 francs=
48 fl.).

11.504
11.57*
11.49"
11.65
11.874

44.30
44.35
41.75
41.40
41.00

M7.00

54.024-54.22*
51.05 -51.55"
51.724-52.221- 138.60 -39.10
51,95
51.60
50.70
50.35
50.40-50.424
50.66 -50.68 36
48.92*-48.95
47.00"-47.05
33$
42.30 -42.35
2.341
2.35*
2.34*
2.38$
-2.41*
2.41*
-2.42
-2.44'V
-2.44|

42.00-42.85
42.30 -42.35
41.674-41.70
44.15 -44.17;
44.60 -44.62i
43.75 -43.77<.
43.15 -43.174
42.574-42.60
42.50 -42.524
42.44 -42-46
40.15 -40.174
41.174-41.20

28.90
29.70
28. 824
30.574
31.15
30.424
29.90
29.37.
28.97:
27.72i
25.07|
25.75

41.35 -41.371
40.50 -40.524
38. 85 -38.90
37.57^-37.60
36.42i-36.474
34.60"-34.75
33.70 -33.75
33.124-33.15
32.75 -32.80
32.45 -32.50
36.00 -36.10
45.274-45.324

26.63|
25.23£
24.52'23.60
23.374
21.623
21.57^
21. 16J
20.81J
20.574
22.15
27.30

2.29
2.21
2.14*

42.15 -42.20
43.70 -43.75
42.50 -42.55
4.0.80
38.974
34.25
32.30
31.22J
32.05
34.60
30.25
30.10

27.174
28.924
27.40
26.15
24.00
20.40
18.95
17.50
17.65
19.25
15.75
15.15

2.40J -2.41-J
2.41.} -2-43
2.50 -2.51
2.47 -2.48£

28.15
24.274
22.50
21.974
18.40

14.20
11.55
9.75
10.50
10.40

2.41
2.411
2.44
2.44|

2.431

2.45

42.074-42.10
42.37*-42.40
42. 30"-42-32£
42.75 -42.80
42.60 -42.65
42. 30 -42.324
41.75 -41.80
41.20 -41.22:'
40.874-40.90" 2.37| -i
39.80 -40.00
40.50 -40.60
40.65 -40.75
10.904-10.91 40.10 -40.20
10.53 -10.534 38.60 -38.70
10.214-10.22 37.70 -37.75
36.45
9.88
35.00
9.47
34.424
9.32i
33.75
9-144
35.95
9.33
38.75
10.11
43.124
11.25
43.55
11.33
42.80
11.131

59.15
57.30
54.60 -55.10
53.65 -54.15
52.45-52.95
54.00 -54.50

1 From Nederlandsche Financier.

Stockholm Copenhagen
Switzerland
(100 francs— (1.00 krbner= (100 kroner—
' 66.67 fl.).
60.67 fi.).
48 fl.).

1 66.25

49.25

46.95-47.45
47.55-47.75
47.30-47.80 j
46.00-46.50 ;
46.05-46.55 i
46.10-46.60 i
45. 90-46.40 I
44.60-45.10 !
44.30-44.80 j
43.20-43.70 '

166.20

63*
65|
64|
61*
64

S?

67

64.60
66.05
67.65
72.55
71.95
69.90
68.95
69.25
68.95
69.574
71.90

64.00
65.95
67.65
72.55
71.824
69.80
68.10
66.85
66.40
66.181
66.024
67.00

72.52*
73.20"
74.45
73.624
73.12*
74.05 I
80.121
79.8211
82.35
95.00
86.62£
77.70

67.31*
68.90
71.35
69.85
70.074
70.55
71.25
72.424
73.80
79.25
76.25
72.50

50.90
50.00
50.10
49.624
49.70
49.60
48.80
45.80
47.15
47.65
49.121
48.90

77.12-1
71.124
72,20
70.50
67.50
69.724
68.971
68.60
69.524
68.20
68.05
68.50

70.874
67.174
67.224
65.15
62.00
61.16
60.75
60.70
62.50
63.75
63.70
63.20 ,

49.15
50.35
49.95
50.25
49.60

68.20
68.40
67.25
66.30
65.10

63.20
63.35
62.70
62.00
60.00

45.25
44.75
44.921|
46.00
45.95
45.60
45.624
45.99 j
46.05
46.574!
47.50 !
48.574!

i
48.924|
49.374-i
49.05 I
47.45 |
48.30
50. 30
53.071
52.15
50.45
50.50
54.20
52.85

69.22J,

647

FEDERAL RESERVE BULLETIN.

JULY 1,1919.

Summary statement of the principal assets and liabilities of the Java Bank on the last of March, 1915 to 1919.
Mar. 31,1915. Mar. 31,1916. Mar. 31,1917. Mar. 31,1918. Mar. 29,1919.
Florins.
30,889,639
29,025,344

Florins.
46,774,840
33,667,441

Florins.
72,098,796
23,668,585

Florins.
92,166,793
19,409,454

Florins.
127,706,126
10,747,920

j

59,914,983

80,442,281

95,767,381

111,576,247

138,454,046

I
i
I

72,103,850
5,710,163
8,346,732
5,877,923

54,833,739
15,697,006
8,715,638
29,169,860

56,533,930
37,207,583
8,546,499
8,445,215

80,230,807
34,161,204
8,223,607
21,543,756

174,661,879
22,009,246
8,077,170
12,980,021

151,953,651

188,858,524

206,500,608

255,735,621

356,242,362

6,000,000
3,119,492
118,084,725
19,234,669
1,927,389
3,587,376

6,000,000
2,761,132
144,882,260
27,102.168
4,469i829
3,643,135

6,000,000
3,175,176
157,946,205
32,071,382
3,086,096
4,221,749

6,000,000
3,161,690
180,754,970
56,054,765
5,180,902
4,583,294

6,000,000
3,644,178
210,775,950
123,126,770
2,911,204
9,784,260

151,953,651

188,858,524

206,500,608

255,735,629

356,242,362

Gold..
Silver.
Total metallic reserve
Discounts, loans, and advances
Foreign bills
Securities and mortgages
All other assets

I

LIABILITIES.

Capital
Reserve fund
Notes in circulation.
Deposits
Bills payable
All other liabilities..
Total liabilities..




648

FEDERAL RESERVE BULLETIN.

JULY 1,

1919.

Comparative Statement of Leading Banks of England, and the Bank of France, while the
Issue.
German Reichsbank lost 122 million dollars in

There is presented below a comparative
statement showing the condition of the leading central banks of issue in 1914, immediately
preceding the outbreak of the war, at the close
of 1918, and on the latest date in 1919 for which
figures are available.
Gains of gold since the close of 1918 are
reported among the banks in allied countries
by the Federal Reserve Banks, the Bank of

gold since the beginning of 1919. No material
changes in gold reserves were reported by the
other banks included in the table, except that
the Netherlands Bank lost 11 million dollars,
largely as a result of investing its " earmarked'7
gold previously held in the United States, and
the Java Bank gained 8 million dollars between December 31, 1918, and April 5, 1919.

Gold and total reserves, also deposit and note liabilities, of the leading banks of issue at dates specified.
[In millions of dollars.]
Federal Reserve Banks.
June 13

Bank of England.
1919.

Dec. 31,1914.

Gold in vault
Total reserve
Deposits
Bank notes in circulation
Ratio of gold cover to combined deposit and
note liabilities (per cent)

Dec. 27,1918.

241
259
264
10

2,084
2,093
1,583
2,802

2,194
2,262
2,630
2,499

88

48

July 29. 1914.

43

}

186

Dec. 26,1918.

Gold in vault
..
Total reserve
Deposits .
Bank notes in circulation
Ratio of gold cover to combined deposit and
note liabilities (per cent)

799
920
258
1,290

385
840
1342

419
694
1376

36

33

39

Bank of Italy.
May 15,1919.
689
749 }
672
6,607

664
725
478
5,838

52

11

Gold in vault
Total reserve
.
.
Deposits
Bank notes in circulation
Ratio of gold cover to combined deposit and
note liabilities (per cent)

May 7, 1919.

Dec. 31,1918.

158
417

Apr. 30,1919.

158
173
565
1,780

158
326
618
1,812
7

July 23,1914.

Dec. 31,1918.

Apr. 23, 1919.

298
364
300
692

539
544
3,292
2 5,285

2,912
6,365

«7
422

251
310
59
431

53
65
1,447
8,713

53
68
1,334
3
7,922

30

6

4

51

.5

.6

July 31,1914.

1

237 /
\

Dec. 31,1918.

Austro-Hungarian Bank.

Riksbank, Sweden.

Gold in vault
Total reserve
Deposits
Bank notes in circulation
Ratio of gold cover to combined deposit and
note liabilities (per cent)

Dec. 31,1914.

9

German Reichsbank.
July 31,1914.

May 28, 1919.

328
185

Bank of France.
July 30,1914.

Dec. 25,1918.

Dec. 31,1918.

25
26
18
54

76
77
36
218

35

30

Norges Bank, Norway.

May 17, 1919.

}

July 31,1914.

Dec. 31,1918.

Apr. 30, 1919.

183

12
4
34

!
33 j
34
116

40
20
116

43

35

28

34

78

In addition there were 1,575 millions of currency notes in circulation on Dec. 25,1918, and 1,675 millions on May 28,1919, against which a gold
reserve of 139 millions is held.
2
In addition there were 2,406 millions of Darlehnskassenscheine in circulation on Dec. 31,1918, and 2,673 millions on May 7,1919.
3
Does not include scrip—Kassenscheine—no figures given.




649

FEDERAL'EESERVE BULLETIK.

JULY 1,1919.

Gold and total reserves, also deposit and note liabilities, of the leading banks of issue at dates specified— Continued.
[In millions of dollars.]
National Bank, Copenhagen, Denmark.

Bank of Spain.

Dec. 31,1918.

Apr. 30, 1919.

July 24, 1914.

Dec. 28,1918.

40

52
53
31
121

50
51
30
116

106
249
96
374

430
554
226
640

436
561
214
681

53

34

34

23

50

49

July 31,1914.
Gold in vault
1
Total reserve
Deposits
Bank notes in circulation
Ratio of gold cover to combined deposit and
note liabilities (per cent)

'

1

f
\

Bank of Netherlands.

May 17,1919.

Swiss National Bank.

Dec. 28,1918.

May 17,1919.

July 23,1914.

Dec. 31,1918.

65
68
2
125

277
281
36
430

266
269
41
419

35
38
29
83

80
91
35
188

83
96
25
174

51

59

58

31

36

42

July 25,1914.
Gold in vault. ..
Total reserve
Deposits
Bank notes in circulation
Ratio of gold cover to combined deposit and
note liabilities (per cent)

Bank of Japan.

May 15,1919.

Bank of Java.

June 30,1914.

Dec. 29, 1918.

May 10,1919.

Mar. 31,1914.

Dec. 31,1918.

259
259
265
275

357
357
519
537

352
352
596
395

12
24
8
47

43
49
38
79

51
55

48

34

36

22

37

60

Gold in vault
Total reserve
.
. .
Deposits
Bank notes in circulation
Katio of gold cover to combined deposit and
note liabilities (per cent)

Apr. 5,1919.

State Banks and Trust Companies Admitted.

The following list shows the State banks and
trust companies which have been admitted to
membership in the Federal Reserve system
during the month of June.
One thousand and forty-seven State institutions are now members of the system,
having a total capital of $371,971,875, total
surplus of $422,030,628, and total resources of
$8,003,415,848.

85

Total
resources.

Capital.

Surplus.

8200,000

8100,000

75,000

15,000

631,642

200,000

100,000

3,0S9,731

District No. 7—Continued.
Second Security Bank, Chicago, 111..
First State & Savings Bank, Howell,
Mich
.....
American State Bank, Saginaw,
Mich
.
....

82,975,149

District No. S.
First State Bank, Brownsville, Tenn.

1,291,310

200,000

District No. 9.
Total
resources.

Capital.

Bank of Arcadia, Arcadia, Wis

25,000

15,000

647,067

25,000

15,000

180,915

25,000
50,000

25*666"

54,035
493,908

30,000

6,045

129,377

District No. 11.
District No. 2.

First State Bank, Henderson, T e x . .

oples Bank of Buffalo, Buffalo,
STTY
Bank of Buffalo, Buffalo, N . Y

District No. 12.

$600,000
1,000,000

District No. 3.
Equitable Trust Co., Atlantic City,

200,000

$600,000 I $16,482,563
1,000,000 ; 29,925,166 First State Bank, Prummond,
Idaho
Helper State Bank, Helper, U t a h . . .
Security State Bank of La Crosse,
La Crosse, Wash
100,000 ! 1,947,869

District No. 4.
Bridgeport Bank & Trust Co.,
Bridgeport, Ohio
District No. 7.
Hopkins State Savings Bank, Hopkins, Mich..'
!
First State & Savings Bank, Mason,
Mich
!
First State & Savings Bank, Holly, |
Mich
I




75,000

40,000 I

915,317

25,000

5,000

423,527

25,000

15,000

580,602

30,000

60,000

1,263,362

NOTE.—The State Hank of Reform, Reform, Ala., has decided not to
complete its membership by making payment on account of capital
stock, and it is, therefore, not a member of the Federal Reserve System.
The American National Bank and the Bank of Commerce, member
banks, and the American Trust Company, a nonmember bank, all of
Little Rock, Ark., have consolidated under the name American Bank
of Commerce & Trust Company, which institution has been allotted
stock and is now a member bank.
The St. Louis Union Bank, St. Louis, Mo., has converted into St.
Louis Union National Bank.
The Exchange Bank of Kentucky, Mount Sterling, Ky., has withdrawn from membership.

650

JULY 1, 1919.

FEDERAL RESERVE BULLETIN.

Acceptances to 100 Per Cent.

Since the issue of the June BULLETIN the following banks have been authorized by the Federal Reserve Board to accept drafts and bills of
exchange up to 100 per cent of their capital and
surplus: Brownwood National Bank, Brownwood, Tex.; First National Bank, Kansas City,
Mo.; Portland National Bank, Portland, Me.;
Drovers & Mechanics National Bank, Baltimore, Md.; National Exchange Bank, Baltimore, Md.
Errata.
In the article entitled " Condition of accepting member banks on March 4, 1919," on page
554 of the June BULLETIN, the following corrections should be made: On line 11 of the
article, " total liabilities of $14,395,478" should
read "total liabilities of $14,395,478,000." On
line 7 from the bottom "to total liabilities"
should read "to capital and surplus."
New National Bank Charters.

The Comptroller of the Currency reports the
following increases and reductions in the number of national banks and the capital of national banks during the period from May 31,
1919, to June 27, 1919, inclusive:
Banks.

Commercial Failures Reported.

Continuance of an unusually light business
mortality in the United States is indicated by
failure returns to R. G. Dun & Co., only 309
commercial defaults being reported during
three weeks of June, against 540 in the corresponding period of 1918. For May, the latest
month for which complete statistics are available, the statement discloses but 531 insolvencies, a reduction of nearly 40 per cent from
the 880 failures of May last year, and the
smallest total recorded since monthly comparisons were first compiled a quarter of a century
ago. The exhibit as to liabilities is not so
strikingly fa\ orable as that in respect of number, although the May indebtedness of $11,956,651 is about $1,200,000 less than in May,
1918, and the lightest for the month, aside from
the $9,590,186 of May, 1910, since 1907. Separated according to Federal Reserve districts,
the May statement discloses decreases in number of defaults as contrasted with May last
year, in all of the 12 districts, apart from the
eleventh district, where a small increase appears. In most cases, moreover, the numeiical
reductions are sizable, while the liabilities are
smaller in 7 of the 12 districts, the exceptions
being the fourth, fifth, sixth, tenth, and
eleventh districts/
Failures during May.

Number.
Liabilities.
New charters issued to
22
Districts.
With capital of
$5,465,000
1919
1919
1918
1918
Increase of capital approved for
14
With new capital of
1,590,000
Aggregate, number of new charters and
82,380,400
120 $1,559,270
58
First.
banks increasing capital
36
4,250,139
164 3,194,187
93
Second.'
1,121,474
45 1,096,945
30
With aggregate of new capital authorized
7,055, 000 Third
879,332
74
1,481,366
57
Fourth
Number of banks liquidating (other than
206,811
39
491,740
' 30
Fifth
those consolidating with other national
209,110
40
246,650
26
Sixth
2,106,672
141 1,621,869
63
Seventh
banks under the act of June 3, 1864)
4
177,340
34
165,445
18
Eighth
Capital of same banks
185, 000 Ninth
125,400
22
45,948
184,428
Number of banks reducing capital
0
41
703,255
28
Tenth
262,671
31
304,739
35
Reduction of capital
0 E leventh
1,230,895
129 1,045,237
84
Twelfth
Total number of banks going into liquidation or reducing capital (other than those
880 11,956,651 13,134,«72
531
Total
consolidating with other national banks
under the act of June 3, 1864)
4
Aggregate capital reduction
185,000 Fiduciary Powers Granted to National Banks.
Consolidation of national banks under the
The applications of the following banks for
act of Nov. 7, 1918
1
Capital
2, 000,000 permission to act under section 11 (k) of the
The foregoing statement shows the aggregate
Federal Reserve Act have been approved by the
of increased capital for the period of the
Federal Reserve Board0 during the month of
banks embraced in statement was
7,055,000
June:
Against this there was a reduction of capital
DISTRICT NO. 1.
:
owing to liquidation (other than for consolidation with other national banks unTrustee, executor, administrator, registrar of stocks and
der the act of June 3, 1864) and reducbonds, guardian of estates, assignee, receiver, and comtions of capital of
185,000
mittee of estates of lunatics:
Merchants National Bank, Newburyport, Mass.
Net increase
6, 870,000
Southbridge National Bank, Southbridge, Mass.




651

FEDERAL RESERVE BULLETIN.

JULY 1,1919.

Administrator, guardian of estates, assignee, receiver, and
DISTRICT NO. 7.
committee of estates of lunatics:
Trustee, executor, administrator, registrar of stocks and
Norway National Bank, Norway, Me.
bonds, guardian of estates, assignee, receiver, and comExecutor, administrator, guardian of estates, assignee
mittee of estates of lunatics:
receiver, and committee of estates of lunatics:
City National Bank,. Goshen, Ind.
Springfield National Bank, Springfield, Mass.
Delaware County National Bank, Muncie, Ind.
Guardian of estates, assignee, receiver, and committee of
First National Bank, Webster City, Iowa.
estates of lunatics:
Trustee, executor, administrator, registrar of stocks and
Second National Bank, New Haven, Conn.
bonds, and guardian of estates:
Merchants National Bank, Clinton, Iowa.
DISTRICT No. 2.
Trustee, executor, administrator, registrar of stocks and
bonds, guardian of estates, assignee and receiver:
Trustee, executor, administrator, registrar of stocks and
First "National Bank, New Sharon, Iowa.
bonds, guardian © estates, assignee, receiver, and com- Guardian of estates, assignee, receiver, and committee of
f
estates of lunatics:
mittee of estates of lunatics:
Merchants National Bank, Michigan City, Ind.
First National Bank, Cooperstown, N. Y.
National City Bank, Chicago, 111.
National Bank of Port Jervis, Port Jervis, N. Y.
Guardian of estates, assignee, receiver and committee of
DISTRICT No. 8.
estates of lunatics:
Second National Bank, Red Bank, N. J.
Trustee, executor, administrator, guardian of estates,
assignee, receiver and committee of estates of lunatics:
Citizens National Bank, Hot Springs, Ark.
DISTRICT NO. 3.
DISTRICT No. 9.

Trustee, executor, administrator, registrar of stocks and
bonds, guardian of estates, assignee, receiver and com- Trustee, executor, administrator, registrar of stocks and
bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics:
mittee of estates of lunatics:
Mechanics National Bank, Burlington, N. J.
Austin National Bank, Austin, Minn.
Union National Bank, Mahanoy City, Pa.
First National Bank, St. Peter, Minn.
Union National Bank, Mount Carmel, Pa.
Bloomsburg National Bank, Bloomsburg, Pa.
DISTRICT NO. 10.
National 7«ank of Catasauqua, Pa.
Trustee, executor, administrator, registrar of. stocks and
First National Bank, Pittston, Pa.
bonds, guardian of estates, assignee, receiver, and comTextile National Bank, Philadelphia, Pa.
mittee of estates of lunatics:
Guardian of estates, assignee, receiver, and committee of
National Bank of America, Salina, Kans.
estates of lunatics:
First National Bank, Winfield, Kans.
Deposit National Bank, DuBois, Pa.
Guardian of estates, assignee, receiver, and committee of
First National Bank, Johnstown, Pa.
estates of lunatics:
Commercial National Bank, Independence, Kans.
DISTRICT No. 4.
Central National Bank, Tulsa, Okla.
First National Bank, Cheyenne, Wyo.
Trustee and registrar of stocks and bonds:
Stock Growers National Bank, Cheyenne, Wyo.
Citizens National Bank, Galion, Ohio.
Registrar of stocks and bonds, guardian of estates, assignee,
Merchants National Bank, Massillon, Ohio.
receiver, and committee of estates of lunatics:
Registrar of stocks and bonds:
First National Bank, Neosho, Mo.
Monongahela National Bank, Pittsburgh, Pa.
DISTRICT NO. 11.

Trustee, executor, administrator, registrar of stocks and
bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics:
Trustee, executor, administrator, and guardian of estates:
Arizona National Bank, Tucson, Ariz.
Elk National Bank, Fayetteville, Tenn.




DISTRICT NO. 6.

652

FEDERAL RESERVE BULLETIN

JULY 1,1919.

RULINGS OF THE FEDERAL RESERVE BOARD.
Below are published rulings made by the nature so perishable as not to be reasonably sure
Federal Reserve Board which are believed to of maintaining its value as security at least for
be of interest to Federal Reserve Banks and the life of the draft which is drawn against it.
member banks.
DEFINITION.
Deposits with a Federal Reserve Bank from the savings
department of a trust company member bank to count
as reserve.

A member bank which operates both a
savings department and a commercial banking
department may properly deposit funds out
of its savings department with the Federal
Reserve Bank to count as reserve against its
savings deposits, even though under the terms
of the State law such a deposit with the Federal
Reserve Bank is not subject to any claim by the
Federal Reserve Bank against the member
bank itself as distinct from the savings department.
[See opinion of General Counsel in Law Department, p. 654.]

Time certificates of deposit which become payable within
thirty days.

A certificate of deposit which though originally payable in sixty or ninety days, and which
though originally a time deposit within the
meaning of the regulations of the Federal
Reserve Board, becomes a demand deposit
when it becomes payable within thirty days.
[See opinion of General Counsel in Law Department, p. 655.]

Definition of " Readily marketable staples."

Printed below is a definition of the term
"readily marketable staples" as used in that
part of section 13 of the Federal Reserve Act
which authorizes any member bank to accept
drafts which are secured at the time of acceptance by a warehouse receipt or other such
document conveying or securing title covering
" readily marketable staples."
The Board has issued this definition as a
guide to Federal Reserve Banks and member
banks in determining what staples may properly
be considered readily marketable within the
meaning of that section and suggests that
although the law does not expressly restrict
eligible staples to those which are nonperishable, nevertheless banks as a matter of prudence and protection to themselves should not
consider as eligible any staple which is in its




A readily marketable staple may be defined
as an article of commerce, agriculture, or
industry of such uses as to make it the subject
of constant dealings in ready markets with
such frequent quotations of prices as to make
(a) the price easily and definitely ascertainable
and (6) the staple itself easy to realize upon by
sale at any time.
REGULATION ISSUED BY THE DIVISION OF
FOREIGN EXCHANGE.

Until otherwise instructed, "dealers" as
defined under the Executive order of the
President of January 26, 1918, are hereby
authorized to carry on transactions in foreign
exchange or in securities for or through foreign
account without restriction except as hereinafter provided.
Registration certificates must be obtained
as required under the Executive order. (All
registration certificates which have been issued
to date continue in force.)
Customers' statements of nonenemy interest
need not be taken, but no foreign exchange
transactions can be consummated for enemy
account unless authorized in a general or a
specific license issued by the War Trade
Board.
Further statistical reports after those including transactions up to the close of business
Wednesday evening, June 25, 1919, need not
be made except as called for by the Federal
Reserve Board.
Declarations of foreign correspondents on
Form F. E. 114 and declarations of nonenemy
interest covering security transactions on
Form F. E. 113 need not be taken, and interest
or dividend checks payable for foreign account
need not have customers' statements printed
upon them, but ''dealers" can not carry out
transactions either directly or indirectly for
the benefit of or for account of an enemy or
ally of enemy except under the authority of a
general or a specific license issued by the War
Trade Board.

JL-LY 1,

Until otherwise instructed, the exportation
or importation of Russian roubles, or the
transfer of funds for their purchase by persons
and dealers in the United States, as described
under the Executive order of the President of
January 26, 1918, is prohibited. Dealings in
foreign exchange or securities with or for
persons in that part of Russia now under the
control of the so-called Bolshevik governments
are also prohibited.
Until otherwise instructed, "dealers" are
prohibited from purchasing exchange except
from the American Relief Administration,
42 Broadway, New York City, upon any of
the following countries: Finland, Poland,
Czecho-Slovakia, German-Austria, Jugo-Slavia,
Serbia, Roumania, Germany.
FRED I. KENT,

Director of the Division of Foreign
Exchange of the Federal Reserve Board.
JUNE 24,

1919.

NOTICE ISSUED JUNE 30, 1919.

By proclamation under date of June 26, the
President has abrogated the Executive order




653

FEDERAL RESERVE BULLETIN.

1919.

of January 26, 1918, dealing with the control
of foreign exchange and the exportation and
importation of coin, bullion, currency, etc.,
except that the Federal Reserve Board remains
authorized to control dealings with that part
of Russia now under the so-called Bolshevik
government and remittances to countries to
which remittances have heretofore been permitted onlv through the American Relief
Administration.
The Federal Reserve Board has just announced that remittances to these latter countries are not now subject to any restrictions.
Dealings with that part of Russia now under
the control of the so-called Bolshevik government, however, are still prohibited.
Attention is called to the fact that except in
so far as they are permitted by a general or a
specific license from the War Trade Board,
remittances to enemy countries are still prohibited.
FIIED I. KENT,

Director Division of Foreign Exchange,
Federal Reserve Board

654

FEDERAL RESERVE BULLETIN.

JULY 1,

1919.

LAW DEPARTMENT.
The following opinions of General Counsel (See Morse on Banks and Banking, 5th Ed.,
have been authorized for publication by the vol. I, sec. 324-325.)
Board since the last edition of the BULLETIN:
Under the particular circumstances in the
case under consideration, the Federal Reserve
Deposits with a Federal Reserve Bank from the savings
department of a trust company member bank <o count Bank has notice of facts which are inconsistent
with its general common-law lien, that is, the
as reserve.
Massachusetts law which provides that a trust
A member bank which operates both a savings department and a commercial banking department may properly company may carry not more than 2\ per cent
deposit funds out of its savings department with the Fed- of its savings deposits in any bank incorporated
eral Reserve Bank to count as reserve against its savings under the laws of the United States and that
deposits even though under the terms of the State law no loan of savings deposits shall be liable for
such a deposit with the Federal Reserve Bank is not the debts or obligations of the corporation itsubject to any claim by the Federal Reserve Bank against
self until after the savings depositors have been
the member bank itself as distinct from the savings depaid in full. If, therefore, a Federal Reserve
partment.
Bank receives a deposit of the funds of the
MAY 29, 1919.
savings department of" a trust company, it
An opinion has been asked on the question
whether or not a Massachusetts trust company, would not have the right to apply those parwhich is a member of the Federal Reserve sys- ticular deposits to the payment of any debts
tem, may be permitted to make special depos- owed by the trust company to the Federal
its out of its savings department which shall Reserve Bank.
The sole question for .consideration, therecount as reserve against its savings deposits,
but which shall not be subject to any claim fore, is whether the Federal Reserve Bank
by the Federal Reserve Bank against the trust should receive from a member bank any decompany itself as distinct from the savings posit to which this common-law lien would not
attach. As a matter of law there is no reason
department.
Though it is true that under the terms of the that the Federal Reserve Bank should not
Federal Reserve Act the cash-paid subscrip- permit member banks to make a deposit of
tions of a member bank to the capital stock of this character and it is believed that the
a Federal Reserve Bank are subject to be ap- Federal Reserve Banks may and should replied to all debts of the member bank to the ceive such deposits even though they can not
Federal Reserve Bank in the case of insolvency, be applied to the general debts of the corporathere is no provision in the act which expressly tion. Such a practice would involve no pracgives the Federal Reserve Bank the right to tical risk to the Federal Reserve Bank beoffset deposits of the member bank against cause it has a lien on the cash-paid subdebts of the member bank to the Federal Re- scriptions to its capital stock made by the
member bank and because it has the general
serve Bank.
Under the common lav/, however, a deposi- banker's lien upon other deposits made by the
tary bank generally has what is termed a bank- member bank out of its commercial departer's lien on all moneys and funds of a depositor ment. As a matter of prudence, however, it is
in its possession for the balance of the general suggested that, in any case in which the State
account, but this common law lien does not law in substance denies the right of the deposiapply in any case where any special purpose tary bank to offset debts of the member bank
which attaches to the deposit is inconsistent against deposits made out of the funds of the
with the lien or where the bank has notice of savings department, the Federal Reserve Bank
facts which are inconsistent with the lien. should not receive and count as reserve any




JULY 1,1919.

such deposits which aggregate more than the
amount of the reserve which is required to be
carried against those savings deposits. A similar situation will in all probability arise in a
number of other States where one corporation
operates two separate departments, and where
the State law provides that the funds and investments of the savings and commercial departments of the bank shall not be mingled.
With particular reference to Massachusetts,
the State law prohibits a trust company from
depositing more than 2\ per cent of its savings
accounts with a Federal Reserve Bank. To
that extent, however, there seems to be no
reason that the Federal Reserve Bank should
refuse to receive such deposits, the remaining
\ per cent reserve against savings deposits
being made up of balances from the commercial
department.
Time certificates of deposit which become payable within thirty days.
A certificate of deposit which, though originally payable
in 60 or 90 days, and which, though originally a time
deposit within the meaning of the regulations of the
Federal. Reserve Board, becomes a demand deposit when
it becomes payable within 30 days.
JUNE 7, 1919.

An opinion has been asked on the question
whether a 60-day certificate of deposit becomes
a demand deposit after a lapse of 31 days, that
is, when it has less than 30 days to run.
Section 19 of the Federal Reserve Act reads
in part as follows:
Demand deposits, within the meaning of this
Act, shall comprise all deposits payable within
thirty days, and time deposits shall comprise
all deposits payable after thirty days, and all
savings accounts and certificates of deposit
which are subject to not less than thirty days'
notice before payment, and all postal savings
deposits.
The Federal Reserve Board has consistently
ruled that any deposit which is payable after 30
days is a time deposit, but that as soon as the
pay date comes within 30 days it thereupon becomes a demand deposit. It is difficult to place
any other interpretation upon the paragraph of




655

FEDERAL. RESERVE BULLETIN.

section 19 quoted above, and the regulations
and rulings of the Board consequently have
always been understood to require demand reserves to be held against any deposit which is
necessarily payable at the option of the depositor within 30 days. This is true regardless of
whether or not the deposit in the first instance
was a demand deposit or a time deposit. The
principles on which a different character of
reserve is established for time and demand
deposits can not properly permit of a distinction being made in favor of a deposit which
though originally a time deposit -has become
payable within the 30-day limit.
Deposit of Securities by National Banks Exercising
Trust Powers in Missouri.

The following opinion of the assistant attorney general of Missouri, holds that the Superintendent of Banks of the State of Missouri
is not only authorized but required to receive
from national banks, which have received the
permit of the Federal Reserve Board to exercise
trust powers under the provisions of section 11
(k) of the Federal Reserve Act, deposits of
securities tendered by such banks in order to
enable them to qualify without giving bondy
in the same manner that such deposits are received from trust companies organized under
the laws of Missouri.
JEFFERSON CITY, MO., June 12, 1919.
Hon. C. F. EN RIGHT,

State Bank Commissioner,
Jefferson City, Mo.
DEAR SIR: YOU request the opinion of this department
on the following proposition:
One of the national banks that have assumed fiduciary
powers desires to deposit $200,000 with me as bank commissioner and receive a certificate from me to that effect,
presuming that in so doing they may qualify as guardian,
curator, executor, administrator, etc., without giving
bond as such.
Q. Does any authority exist requiring me to accept such
a deposit and issue the certificate? Such privileges are
given in section 166, but seem limited to companies incorporated under article 111, Banking Laws, 1915; in other
words, trust companies.
As the exact question you present has not been passed
upon by any Federal court or the court of last resort in this
State, we can render an intelligible opinion and arrive at
conclusions which may be maintained only by reviewing,

656

FEDERAL RESERVE BULLETIN.

in more or less detail, the act of Congress ar*d amendments
thereto under which national banks derive their authority
to exercise the powers and functions of trust companies
and the decisions of the United States Supreme Court passing upon the authority of Congress to legislate upon the
subject.
The Federal Reserve Act, approved December 23,1913?
38 Statutes at Large, 261, in section 11 thereof, contains
the following paragraph:
(k) T® grant by special permit to national banks applying therefor, when not in contravention of State or local
law, the right to act as trustee, executor, administrator, or
registrar of stocks and bonds under such rules and regulations as the said board may prescribe.
This section was subsequently amended in 1916 and
again in 1918, concerning which said amendment we shall
have more to say hereafter.
Said paragraph (k) of said section 11 came before the
United States Supreme Court in the case of First National
Bank v. Fellows, Attorney General of the State of Michigan,
ex rel. Union Trust Company et al. This suit was a proceeding in the nature of a quo vjarranto, brought by the
Attorney General at the relation of certain trust companies,
to test the right of a national bank to exercise the powers
and functions of a trust company by virtue of the authority
conferred upon it under paragraph (k) of section 11 of the
Federal Reserve Act of 1913. As it was conceded by the
complainant in this case that the exercise of said powers by
said bank was not in contravention of the laws of the State
of Michigan, there were presented to the court the question
of the power of Congress to confer the powers and functions
called in question.
The Supreme Court of the State of Michigan, on the
theory that there wag no apparent, natural connection
between the business of banking and Federal fiscal operations and the business of acting in fiduciary capacities, held
that the State not only controlled the devolution of estates
of deceased persons and the conduct of private business
within the State, but also the creation of corporations and
the qualifications and duties of such as may engage in the
business of acting as trustees, executors, and administrators; and that the act of Congress amounted to an
invasion of the State's rights.
On appeal the Supreme Court of the United States, in
an opinion by White, C. J., reported in 244 U. S., 416,
held the decision of the State court in direct conflict with
the rule laid down in the cases of McCullough v. Maryland
and Osborne v. Bank, previously decided by said court.
The court summarized these earlier cases as establishing
the rule that although a business is of a private nature
and subject to State regulations, if it is of such a character
as to cause it to be incidental to the successful discharge
by a bank chartered by Congress of its public functions,
it is competent for Congress to give the bank the power to
exercise such private business; that this rule excludes the
power of the State in such case, although it may possess
iii a general sense authority to regulate such business, to
use that authority to prohibit such business from being




JULY 1,

1919.

united by Congress with the banking function, since to do
so would be but the exertion of such State authority to
prohibit Congress from exerting a power which under
the Constitution it has a right to exercise.
Upon the premises thus laid down, the court continues
with its opinion as follows: •
From this it must also follow that even although a business be of such a character that it is not inherently considered susceptible of being included by Congress in the
powers conferred on national banks, that rule would cease
to apply if by State law State banking corporations, trust
companies, or others which by reason of their business are
rivals or quasi rivals of national banks are permitted to
carry on such business. This must be since the State may
not by legislation create a condition as to a particular
business which would bring about actual or potential
competition with the business of national banks and at
the same time deny the power of Congress to meet such
created condition by^ legislation appropriate to avoid the
injury which otherwise would be suffered by the national
agency. Of course, as the general subject of regulating
the character of business just referred to is peculiarly
within State administrative control, State regulations for
the conduct of such business, if not discriminatory or so
unreasonable as to justify the conclusion that they necessarily would so operate, would be controlling upon banks
chartered by Congress when they came in virtue of authority conferred upon them by Congress to exert such
particular powers. And these considerations clearly were
in the legislative mind when it enacted the statute in
question. This result would seem to be plain when it
was observed (a) that the statute authorizes the exertion
of the particular functions by national banks when not in
contravention of the State law, that is, where the right to
perform them ia expressly given by the State law or what
is equivalent is deducible from the State law because
that law has given the functions to State banks or corporations whose business in a greater or less degree rivals that
of national banks, thus engendering from the State law
itself an implication of authority in Congress to do as to
national banks that which the State law has done as to other
corporations; and (b) that the statute subjects the right to
exert the particular functions which it "confers on national
banks to the administrative authority of the Reserve
Board, giving besides to that Board power to adopt rules
regulating the exercise of the functions conferred, thus
affording the means of coordinating tho functions when
permitted to be discharged by national banks with the
reasonable and nondiscriminating provisions of State law
regulating their exercise as to State corporations—the
whole to the end that harmony and the concordant exercise
of the national and State power might result.
We call your attention to the language of the opinion
following ("a"), quoted above, wherein the court holds that
the powers conferred by Congress are not in contravention
of the State law, for the reason that the right to perform
such powers is expressly given by said law to State banks
or other corporations, whose business in some degree
comes in competition with that of national banks and that
Congress, therefore, has implied authority to extend to
national banks the same powers and functions that have
been conferred by the State upon said institutions..
We further call your attention to (" b " ) , appearing in
above quotation, wherein the court comments on the authority of the Reserve Board to regulate the exercise of

JULY 1,1919.

FEDERAL RESERVE BULLETIN.

the functions conferred to the end that same may be
carried out in harmony with State regulations.
The amendment of 1916, 39 Statutes at Large, 752,
affected only paragraph (m) of said section 11, and has no
bearing on the question here under consideration. ,
Before carefully considering the force and effect^ofjbhe
provisions of the act of 1918, amending said paragraph (k),
in the light of the opinion of the United States Supreme
Court in the aforesaid Michigan case, we were inclined to
the opinion that, conceding the right of Congress to confer
upon national banks the powers of trust companies, such
institutions were not brought under the authority of the
State nor subjected to the regulation of the State Banking
Department, whereby the interests of the people of the
State are sought to be protected, and were not, therefore,
entitled to the privileges extended to companies created
under State laws and subject to its supervision. After
further investigation and careful consideration, however,
we are constrained to believe that the power of Congress, as
declared by the United States Supreme Court on the
principal proposition, that is, on its power to confer upon
national banks the authority of acting in fiduciary capacities and the basis upon which such power is placed by the
Supreme Court, would unquestionably be extended by
said court to the conferring of the functions, rights, and
privileges incident thereto, including such as are covered
by the act of 1918.
With the evident intention of extending and further
securing the powers conferred by said paragraph (k),
Congress, in an act, approved September 26, 1918, 39
Statutes at Large, 752, amended said paragraph to read as
follows:
To grant by special permit to national banks applying
therefor, when not in contravention of State or local law,
the right to act as trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee,
receiver, committee of estate of lunatics, or in any other
fiduciary capacity in which State banks, trust companies,
or other corporations which come into competition with
national banks are permitted to act under the law of the
State in which the national bank is located.
Whenever the laws of such State authorize or permit the
exercise of any or all of the foregoing powers by State
banks, trust companies, or other corporations which compete with national banks, the granting to and the exercise
of such powers by national banks shall not be deemed to
be in contravention of State or local law within the meaning of this act.
National banks exercising any or all of the powers enumerated in this subsection shall 'segregate all assets held in
any fiduciary capacity from the general assets of the bank
and shall keepa separate set of books and records showing
in proper detail all transactions engaged in under authority of this subsection. Such books and records shall be
open to inspection by the State authorities to the same
extent as the books and records of corporations organized
under State law which exercise fiduciary powers, but
nothing in this act shall be construed as authorizing the
State authorities to examine the books, records and assets
of the national bank which are not held in trust under
authority of this subsection.




657

No national bank shall receive in its trust department
deposits of current funds subject to check or deposit of
checks, drafts, bills of exchange, or other items for collection or exchange purposes. Funds deposited or held in
trust by the bank awaiting investment shall be carried in
a separate account and shall not be used by the bank in
the conduct of its business unles's it shall first set aside in
the trust department United States bonds or other securities approved by the Federal Reserve Board.
In the event of the failure of such bank the owners of
the funds held in trust for investment shall have a lien on
the bonds or other securities so set apart in addition to
their claim against the estate of the bank.
Whenever the laws of a State require corporations acting
in a fiduciary capacity, to deposit securities with the State
authorities for the protection of private or court trusts,
national banks so acting shall be required to make similar
deposits, and securities so deposited shall be held for the
protection of private or court trusts, as provided by the
State law.
National banks in such cases shall not be required to
execute the bond usually required of individuals if State
corporations under similar circumstances are exempt from
this requirement.
National banks shall have power to execute such bond
when so required by the laws of the State.
In any case in which the laws of a State require that a
corporation acting as trustee, executor, administrator, or
in any capacity specified in this section, shall take an oath
or make an affidavit, the president, vice president, cashier,
or trust officer of such national bank may take the necessary
oath or execute the necessary affidavit.
It shall be unlawful for any national banking association
to lend any officer, director, or employee any funds held
in trust under the powers conferred by this section. Any
officer, director, or employee making such loan, or to whom
such loan is made, may be fined not more than $5,000 or
imprisoned not more than five years, or may be both fined
and imprisoned, in the discretion of the courtIn passing upon applications for permission to exercise
the powers enumerated in this subsection, the Federal
Reserve Board may take into consideration the amount of
capital and surplus of the applying bank, whether or not
such capital and surplus.is sufficient under the circumstances of the case, the needs of the community to be
served, and any other facts and circumstances that seem
to it proper, and may grant or refuse the application accordingly: Provided, That no permit shall be issued to any
national banking association having a capital and a surplus
less than the capital and surplus required by State law of
State banks, and trust companies and corporations exercising such powers.
In the second paragraph of the amendment of 1918 it is
provided that the exercise of the powers conferred by
national banks "shall not be deemed to be in contravention of State or local law within the meaning of this act."
Thus is excluded the right to interpose as a defense the
objection that the exercise of such powers comes within
the limitation contained in the act, to wit, that they shall
not be in contravention of State or local law.
The act then proceeds, as can readily be seen, to lay
down rules and regulations whereby the exercise of such
powers by national banks shall be conducted with a view
to safeguarding those who may deal with them in their
fiduciary capacity, all for the obvious purpose of bringing

658

FEDERAL RESERVE BULLETIN.

said institutions within the regulations set up by the laws
of the State governing local corporations.
Said act provides that the State banking department
shall have the right to examine the books and assets of
national banks pertaining to the trust business conducted
by them, which business must be kept separate and apart
from the other transactions of the institution. It further
grants to the owners of trust funds held by the bank a
special lien on the bonds or other securities set apart in
addition to their claim against the general assets of the
bank. Thus an effort is made to properly safeguard the
interests of those who deal with such a bank in its fiduciary
operations.
You will note that said act provides that where the State
requires corporations acting in fiduciary capacities to
deposit securities with State authorities before being
allowed to act as fiduciaries without execution of the
usual bond, national banks, which have obtained the
necessary permit to assume trust relations, shall make a
like deposit with the State authorities and shall be entitled to all of the privileges extended to State corporations
under similar circumstances. If national banks are given
the same powers to act in fiduciary capacities as are conferred on trust companies under the banking act of this
State, then, by the terms of section 166, they are entitled
to avail themselves of its provisions. Thus we reach the
specific question you present and lay the basis for our conclusion, that as bank commissiontr you are not only
authorized to, but must, accept the deposit tendered you
by a national bank which has secured the permit of the
Federal Reserve Board to act in fiduciary
capacities,

which said deposit must equal in amount and be similar
in character to that required of State institutions under
section 166 of an act of the General Assembly of the State
of Missouri, approved March 25, 1915, relating to banks
and trust companies.
Respectfully submitted.
(Signed)

S. E. SKELLEY,

Assistant Attorney General.

Amendments to State Banking Laws.

The following recent enactments of various
State Legislatures which amend the State banking laws are published for the information of
the Federal Reserve Banks and member banks.
ARIZONA.

The Legislature of Arizona recently enacted
the act recommended by the Federal Reserve
Board and the American Bankers Association
to bring about greater coordination in the
powers of State and national banks and to
promote uniformity in State and Federal
banking laws. As enacted in Arizona, this




JULY 1,

1919.

act, which became effective June 12, 1919,
reads, in part, as follows:
Be it enacted hi/ the Legislature of the State of Arizona:

SECTION 1. The words "Federal Reserve Act" as herein
used shall be held to mean and to include the act of
Congress of the United States approved December 23,
1913, as heretofore and hereafter amended.
The words "Federal Reserve Board" shall be held to
mean the Federal "Reserve Board created and described in
the Federal Reserve Act.
The words "Federal Reserve Bank" shall be held to
mean the Federal Reserve Banks created and organized
under the authority of the Federal Reserve Act.
The words "member bank" shall be held to mean any
national bank, State bank or banking and trust company
which has become or which becomes a member of one of
the Federal Reserve Banks created by the Federal Reserve
Act.
SEC. 2. That any bank or trust company incorporated
under the laws of this State shall have the power to subscribe to the capital stock and become a member of a
Federal Reserve Bank.
SEC. 3. Any bank or trust company incorporated under
the laws of this State which is, or which becomes a member
of a Federal Reserve Bank, is by this act vested with all
powers conferred upon member banks of the Federal
Reserve Banks by the terms of the Federal Reserve Act
as fully and completely^ as if such powers were specifically
eunmerated and. described herein, and all such powers
shall be exercised subject to all restrictions and limitations
imposed by the Federal Reserve Act, or by regulations of
the Federal Reserve Board made pursuant thereto. The
right, however, is expressly reserved to revoke or to amend
the powers herein conferred.
SEC. 4. A compliance on the part of any such bank or
trust company with the reserve requirements of the
Federal Reserve Act, shall be held to be a full compliance
with those provisions of the laws of this State which
require banks or trust companies to maintain cash balances
in their vaults or with other banks, and no such bank or
trust company shall be required to carry or maintain
reserve other than such as is required under the terms of
the Federal Reserve Act.
SEC. 5. Any such bank or trust company shall be
subject to the examination required under the terms of
the Federal Reserve Act, and the authorities of this State
having supervision over such bank, may in their discretion
accept such examination in lieu of the examination required under the laws of this State. Such authorities,
their agents and employees, may furnish free of charge to
the Federal Reserve Board, the Federal Reserve Bank, or
to examiners duly appointed by the Federal Reserve
Board, or the Federal Reserve Banks, copies of all examinations made, and may disclose to such Federal Reserve
Board, Federal Reserve Banks or examiner, any information with reference to the condition or affairs of State
banks or trust companies organized under the laws of this
State which become members'of a Federal Reserve Bank,
or which appl y for membership in a Federal Reserve Bank.
SEC. 6. All acts and parts of act? in conflict with the provisions of this act are hereby repealed.
ARKANSAS.

The Arkansas Legislature recently enacted
an act authorizing State banks, trust companies, and savings banks to own stock in a
Federal Kcserve Bank; providing that those
which become members of the Federal Eeserve

JULY 1,1919.

FEDERAL RESERVE BULLETIN.

system may carry only such reserves as are
required by the Federal Reserve Act; authorizing the State Bank Commissioner to furnish
to the Federal Reserve authorities copies of all
reports of examinations of State member banks
and other information relating thereto; and
authorizing State banks and trust companies to
accept drafts and issue letters of credit, subject
to certain limitations. This act reads as
follows:

659

Repeal: SEC. 6. All laws and parts of laws in conflict
with the provisions of this act are hereby repealed and
this Act being necessary for the immediate preservation
of the public peace, health, and safety, an emergency is
declared and this Act shall be in force from and after its
passage.
NEVADA.

The Nevada Legislature recently enacted an
act substantially the same as the act recommended by the Federal Reserve Board and the
American Bankers Association to bring about
greater coordination in the powers of State and
national banks and to promote uniformity in
State apd Federal banking laws. The Nevada
act omits the suggested provision authorizing
the State authorities to accept examinations
made by the Federal authorities in lieu of
those required by State law. The Nevada act
reads as follows:

Reserves: SECTION 1. That any bank, trust company,
or savings bank organized and doing business under the
laws of this State, which is or which becomes a member of
a Federal Reserve Bank shall keep and maintain as a lawful reserve the same reserves as are required of other bank
members of the Federal Reserve system, and a compliance
by any such bank, trust company, or savings bank with the
reserve requirements of the Federal Reserve Act shall be
'held to be a full compliance with the provisions of the laws
of this State on the subject of bank reserves, and such bank,
vtrust company, or savings bank shall be required to carry
only such reserves as are required under the terms of the
The people of the State of Nevada, represented in Senate
Federal Reserve Act; provided, further, that any bank or and Assembly, do enact as follows:
trust company located in or out of this State acting as reSECTION 1. The words ''Federal Reserve Act" as herein
serve agent for Arkansas banks which is, or which becomes, used shall be held to mean and to include the act of
a member of the Federal Reserve system, shall be required Congress of the United States approved December 23,
fto keep only such reserves as are required by the Federal 1913, as heretofore and hereafter amended. The words
Reserve Act, or any amendments thereto.
''Federal Reserve Board" shall be held to mean the
Examinations: SEC. 2. The bank commissioner of this Federal Reserve Board created and described in the
State may furnish to the Federal Reserve Board or the Federal Reserve Act. The words " Federal Reserve
Federal Reserve Bank of which any bank, trust company, Bank" shall be held to mean the Federal Reserve banks
or savings bank in this State may become a member, or to created and organized under authority of the Federal
the examiners duly appointed by the Federal Reserve Reserve Act. The words "member bank" shall be held
Board or such Federal Reserve Bank, copies of all exami- to mean any national bank, State bank or banking and
nations made of banks, trust companies, or savings banks trust company which has become or which becomes a
becoming members of the Federal Reserve system, and member of one of the Federal Reserve Banks created by
may disclose to such examiners any information with ref- the Federal Reserve Act.
erence to the condition of affairs of such banks, trust comSEC. 2. That any bank or trust company incorporated
panies, or savings banks as become members of the Federal under the laws of this State shall have the power to subReserve Bank.
scribe to the capital stock and become a member of a .
Stock in Federal Reserve Bank: SEC. 3. Any bank, trust Federal Reserve Bank.
SEC. 3. Any bank or trust company incorporated under
company, or savings bank desiring to avail itself of the
privileges of the Federal Reserve system, shall have the the laws of this State which is, or which becomes, a member
right to own such amount of stock in a Federal Reserve of a Federal Reserve Bank is, by this act, vested with all
Bank as may be required by the Federal Reserve Act for powers conferred upon member banks of the Federal
all banks, trust companies, or savings banks becoming Reserve Banks by the terms of the Federal Reserve Act
as fully and completely as if such powers were specifically
members thereof.
Acceptances: SEC. 4. Any bank, private bank, or trust enumerated and described herein, and all such powers •
company doing business in pursuance of the laws of this shall be exercised subject to all restrictions and limitations
State may accept for payment at a future date, drafts imposed by the Federal Reserve Act, or by regulations
•drawn upon it by its customers and to issue letters of of the Federal Reserve Board made pursuant thereto.
credit authorizing the holders thereof to draw drafts upon The right, however, is expressly reserved to revoke or to
it or upon its correspondents at sight or on time not exceed- amend the powers herein conferred.
SEC. 4. A compliance on the part of any such bank or
dng six months: Provided, That no bank shall incur liabilities under this subdivision to an amount equal at any time trust company with the reserve requirements of the
in the aggregate to more than its paid up and unimpaired Federal Reserve Act shall be held to be a full compliance
with those provisions of the laws of this State which recapital stock and certified surplus fund.
Limit on acceptances: SEC. 5. All such acceptances and quire banks or trust companies to maintain cash balances
letters of credit shall be considered as money borrowed, in their vaults or with other banks, and no such bank or
.and no bank, trust company, or savings bank, shall lend, trust company shall be required to carry or maintain
directly or indirectly, to an individual, corporation, or reserve other than such as is required under the terms of
body politic, either by means of letters of credit, by the Federal Reserve Act.
SEC. 5. Any such bank or trust company shall continue
.acceptance of drafts, or by discount or purchase of notes,
bills of exchange, or other obligations of such individual, to be subject to the supervision and examinations recorporation, or body politic an amount in excess of the quired by the laws of this State, except that the Federal
limits prescribed by section 32 of an Act for the Organization Reserve Board shall have the right, if it deems necessary,
and Control of Banks, Trust Companies, and Savings to make examinations; and the authorities of this State
having supervision over such bank or trust company may
Banks, approved March 3, 1913.




660

FEDERAL RESERVE BULLETIN.

JULY 1, 1919.

subscribe to the capital stock and become a member of
a Federal Reserve Bank created and organized under an
act of the Congress of the United States, and known as the
Federal Reserve Act.
SEC. 2. Any bank or trust company, incorporated under
the laws of this State, which shall become a member of a
UTAH.
Federal Reserve Bank, shall be subject to all provisions
of the Federal Reserve Act and its amendments, and to
The Utah Legislature recently enacted an the regulations of the Federal Reserve Board applicable
act authorizing State banks and trust com- to such bank or trust company, and shall have all the
panies to join the Federal Reserve System, to powers and assume all the liabilities conferred and imposed
said act.
become subject to the provisions of the Federal bySEC. 3. Any such bank or trust company shall comply
Reserve Act, and to comply with the reserve with the reserve requirements of the Federal Reserve Act
requirements of the Federal Reserve Act in and its amendments, and the compliance of such bank or
lieu of the State reserve requirements, and trust company therewith shall be in lieu of, and shall reauthorizing the State bank commissioner to relieve such bank or trust company from, compliance with
the provisions of the laws of this State relating to the
accept examinations made by the Federal maintenance of reserves.'
authorities in lieu of those required by States SEC. 4. Any such bank or trust company shall be subject to the examinations required under the terms of the
law. This act reads as follows:
Federal Reserve Act. and the bank commissioner may, in
his discretion, accept such examinations in lieu of the
Be it enacted by the Legislature of the State of Utah;
SECTION 1. That any bank or trust company incorpor- examinations required under the laws of this State.
ated under the laws of this State shall have the power to
SEC. 5. This act shall take effect upon approval.
disclose to the Federal Reserve Board, or to examiners
duly appointed by it, all information in reference to the
affairs of any bank or trust company which has become,
or desires to become, a member of a Federal Reserve Bank.




661

FEDERAL RESERVE BULLETIN.

JULY 1,1919.

BANK TRANSACTIONS DURING MAY-JUNE.

Debits to individual account reported by
clearing-house banks in 154 leading cities
for the four weeks ending June 18, averaged
8,945 million dollars, which is greatly in excess of like averages recorded in the BULLETIN since the inauguration of the service.
During the week ending May 28 debits to
individual account were considerably below the
figure for the previous week when the bulk of
Victory-loan payments were made; the week
ending June 4 saw^, however, a large increase
in individual debits, partly as a result of payments for Victory notes by large subscribers
following the allotment made by the Treasury,
in addition to the usual increase due to end of
the month payments; a further increase was
shown for the week ending June 11, while for
the week ending June 18 the record figure of

9,920 millions was reported. Heavy trading
on the stock and commodity exchanges,
together with payments of income and excess
profits taxes, may be mentioned as important
factors contributing to the exceptionally large
amount of bank transactions during the last
two weeks under review.
Debits to bank account declined during the
two weeks ending May 28 and June 4, but
showed large increases during the third and
particularly the fourth week of the period
under discussion. The average of debits to
bank account for the four weeks, May 22-June
18, was 5,122 million dollars, or about 6jper
cent above the average for the preceding four
weeks, while the average for debits to individual
account was about 8.5 per cent larger during
the later than during the earlier period.

Weekly figures of clearing-house bank debits to deposit account.
[In thousands of dollars, i. e., 000 omitted.]
Debits to banks' and bankers 7 accounts.

Debits to individual accounts.
District.
May 28.
No. 1.—Boston:
Bangor
Boston
Fall River
Hartford
Holyoke
Lowell
,
New Bedford
New Haven
Providence
Springfield
Water bury
Worcester
No. 2.—New YorkAlbany
Binghamton
Buffalo
New York
Passaic
Rochester
Syracuse
No. 3.—Philadelphia:
Altoona
Chester
Harrisburg
Johnstown
Lancaster
Philadelphia
Reading
Scranton
Trenton
Wilkes-Barre
Williamsport
Wilmington
York




2,419
257,589
7,768
17,232
2,839
4,729
6,148
14,606

June 4.

13,084
6,125
14,231

2,520
267,142
8,672
29,413
2,836
4,904
6,035
16,672
32,297
16,998
7,099
18,541

20,726
3,079
56,515
4,600,393
3,280
23,868
11,707

23,996
3,095
71,258
4,983,450
3,744
33,335
12,856

3,061
4.454
4,478
3,009
4,692
302,349
3,042
12,174
8,872
6,406
3,784
7,901
3,168

2,527
3,935
3,780
3,392
4,674
290,056
2,796
10,671
8,597
6,152
2,792
9,743
3,233

June 11.

June 18.

May 28.

June 4.

3,520
321,556
9,593
21,401
3,516
5,668
8,036
16,266
34,474
11,744
6,288
16,673

436
171,478
760
1,600
317
359
255
442
12,800
398
574
1,456

1,867
181,858
849
3,566
1,066
1,489
197
380
11,765
1,420
525
1,155

19,797
16,068
4,020
3,468 !
71,071
58,184 !
5,104,357 5,452,526
^ 271
3,719
32,625
20,928
13,882
12,415

12,508
8,211
1,622,477
421
499

2,813
280,215
7,871
19,743 i
2,684
5,225
5,781
14,996
31,301
12,803
7 184
13,306

2,859
4,076
3,739
3,151
4,682
305,640
3,615
12,298
9,702
6,141 j
3,410
^ 658
3,341 1

3,155
4,481
4,489
3,349
4,684
378,823
4', 454
11,213
11,156
7,800
3,491
13,271
3,511

647

5
642
232
355,032
1
1,893
1,194
52
1,116
1,673 j

June 11.

June 18.

2,113
174,659
725
17,299
1,110
429
1,605
530
13,853
1,573
743
1,480

2,204
212,822
412
16,901
1,831
449
2,686
416
12,575
3,440
600
1,858

12,134

14,016

8,395
1,624,836
507
637
572

34,121
1,725,330
522
494
700-

63,232
2,069
41,053
1,864,432
505
677

644
68
421,118

609
301
344,833

440,292

1,935
1,196
82
818

2,401
1.403
'114
718

2,491
1,771
13a
1,217

1,732

1,805

1,817

30
6

662

FEDERAL RESERVE BULLETIN.

JULY 1, 1919.

Weeklyfiguresof clearing-house bank debits to deposit account—Continued.
(In thousands of dollars, i. e., 000 omitted.]
Debits to banks' and bankers' accounts.

Debits to individual accounts.
District.
May 28.
No. 4.—Cleveland:
Akron
Cincinnati
Cleveland
Columbus
Dayton
Erie
Greensburg, Pa...
Lexington
Oil City
Pittsburgh
Springfield
Toledo
,
Wheeling
Youngstown
,
No. 5.—Richmond:
Baltimore
Charleston
Charlotte
Columbia
Norfolk
Raleigh
Richmond
No. 6.--Atlanta:
Atlanta
Augusta
Birmingham
Chattanooga
Jacksonville
Knoxvillo
Macon
Mobile
Montgomery
Nashville
New Orleans
Pensacola
,
Savanrlah
,
Tampa
Vicksburg....
No. 7.—Chicago:
Bay City
Bloomington
Cedar Rapids
Chicago
Davenport
Decatur
Des Moines
,
Detroit
Dubuque
Flint
Fort Wayne
Grand Rapids...
Indianapolis
Jackson
Kalamazoo
Lansing
Milwaukee
Peoria
Rookford
Sioux City
South Bond
Springfield
Waterloo, Iowa..
No. 8—St. Louis:
Evansville
Little Rock
Louisville
Memphis
St. Louis
No. 9—Minneapolis:
Aberdeen
Billings
Duluth
Fargo
Grand Forks
Great Falls
Helena
Minneapolis
St. Paul
Superior
Wihona




June 4.

! June 11.

June 18. I May 28.

18,829
47,652
126,875
2o, 295
12,011
5,534
2,654
4,384
2,426
154,206
3,389
22,223
7,161
11,587

23,547
53,482
132,067
25,083
11,322
5,797
2,380
3,910
3,154
199,736
2,568
25,048
6,670
11,619

20,737
51,341
137,239
27,722
11,768
5,858 ,
2,309 I
4,484 i
3,396 !
164,761 i
3,511 j
26,189 ;
6,688 I
21,612 I

24,179
64,874
181,289
30,108
12,116
6,796
2,956
4,592
3,157
225,511
4,237
29,815
10,304
12,869

70,202
8,233
5,300
6,612
18,715
3,572
19,394

74,784
7,176
5,700
6,093
20,537
4,383
23,933

115,765 j
7,850 j
5,000 '
7,505 i
21,274 i
3.332 !
21,240 i

112,397
8,421
6,000
6,312
23,063
3,527
24,978

23,221 i
8,179
12,115 !
9,492 j
10,086
4,847
6,745
6,574
3,838
20,741
70,091
1,851
16,312
4,983
1,883

22,944
6,608
12,963
10,764
8,935

25,837 i
8,043 i
13,306 i
13,222 :
11,276 I
6,041 !
7,094
7,953
4,879
20,872
79,377

30,832
8,340
12,467
11,207
11,644
6,749
6,744
7,391
3,004
21,060
69,766
2,145
15,095
4,808
1,496

2,585
2,058
5; 836
565,200
6,549
2,903
16,898
110,764
2,005
6,588
5,234
15,488
28,726
4,201
3,002
4,864
46,279
10,092
4,254
15,491
3,101
4,239
2.790

4,925

9,124
6,660
3,789
15,295
61,361
2,293
15,987
4,232
2,035

i
I
I
I

3,458
2,715
9,758
617,284
7,766
3,349
15.451
115,830
2,263
6,403
4,816
16,959
26,124
3,879
2,887
4,034
53,916
10,565
3,241
15,954
2,293

j

4,582
6,798
33,200
25,039
124,196 I
1,712 I
1,925 !
17,984 !
5,919 ,
1,422 :
2,297 i
1,904 !
66,878 I
35,682 !
1,216 i
939 i

5,048
2,732

4,908
6,650 I
32,959 i
24,900 I
131,520 I
!

1,567
1,911
22,373
3,021
1,711
2,196
1,832
66,753
35,454
1,334
1,082

June 4.

June 11.

June 18,

181
44,375
94,489
5,507
4,117
58

28
58,245
97,579
5,865
4,081
1,190

105
62,348
129,154
6,090
5,185
1,228

2,206
2,470
365,532
1,741
7,853
4,319
284

2,505
2,694
233,071
2,214
8,570
5,270
288

2,311
2,715
308,601
2,278
9,208
7,945
852

28,466
3,580
9,600
12,100 j
19,974
2,536
52,289

22,655
4,724
9,900
10,235
21,159
2,870
45,536

45,397
3,612
10,200
12,594
22,077
2,669
51,620

30,510,
6,134 !
13,083 •
10,542 !
8,757 |
lr823 !
10,535 !
911 I
1,973 i
v 17,640 I
34,286 !
975
8,253
3,139
135

23,442
6,436
13,884
9,480
6,833
1,228
11,926
828
3,155
14,181
29,386
883
8,976
2.627
127

33,364
6,359
12,903
13,470
9,945
1,863
14,477
805
2,929
19,241
39,557
1,294
9,625
3,571
229

18^126
34,285
4,125
3,618
5.190
67,743
10,923
4,798
15,643
6,605
5,155
3,586

410
801
12,483
638,996
1,900
2,988
37,804
51,747
1,521
1,300
2,383
4,177
25,770
2,093
489
2,798
32,936
1,269
263
16,133
1,884
3,381
1,777

400
789 j
17,409 1
541,387
2,115
3,675
31,107
43,650
1,394
4,470
1,896
4,866
21,335
2,075
445
2,753
28,495
1,701
156
17,277
2,060
3,276
1,492

487
1,001
20,386
605,865
2,309
4,024
37,455
43,286
l'2O4
27
2,348
4,335
26,497
2,277
470
3,228
34,330
1,960
106
16,278
3,170
3,430
1,365

485
810
19.161
646,060
2,076
3,818
39,252
38.867
1,290
'414
1,974
2.145
27,050
4,144
580
3,631
35,954
1,861
152
15,009
4,996
3; 540
1.S72

4,092
6,082
35,096
32,880
128,582

4,468
6,310
39,193
34,282
176,876

3,84.6
. 6,658
35,334
21,002
124,264

1,601
5,470
35,334
21,491
128,153

1,593
2,214
37,160
25,203
137,909

3,729
4,968
37,990
23,398
138,267

1,676
2,451
20,396
5,646
1,615
1,798
2,617
72,410
37,720
1,150
1,070

1,614
2,114
22,406
5,862
1,664
1,428
2,044
69,313
45,625
1,320
1,537

2,757
888
21,796
2,180
940
3,765
3,275
75.741
47,261
1,772
1,063

3,193
768
14,564
2,026
986
2,982
3,445
65,474
40,038
1,930
674

3,129
1,002
19,676
2,535
1,123
2,216
5,891
79,996
47,071
1,667
1,079

1,701
1,203
19,372
2,643
1,113
1,933
7,005
68,330
46,145
1,977
1,002

2,900

17,388
5.295 I
1)962 !
2,386 I

2,841 I
10,532 I
622,303
6,692 j
4,297 !
17,641 j
106,913 j
2,317 1
8,291
5,089
15,144
31,913
4,068
3,067
4,914
49,733
11,133
4,593
16,003
3,684
5,353
2,813

2,586
2,713
9,913
729,558
6,274
3,560
17,707
144,198
2,188
7U3

158
41,236
95,402
5,675 i
512 I
155 i
2,552
2,043
282,486
2,164
8,317
5,459
624

37,193.
3,444
10,200
8,881
20,696
2,671
62,394

I
i
I
!
j
!

31,745
6,380
14,918
10,030
9,222
5,554
9,264
975
2,292
17,750
36,842
1,252
10,109
3,225
115

663

FEDERAL RESERVE BULLETIN".

JULY 1,1919.

Weekly figures of clearing-house bank debits to deposit account—Continued.
[In thousands of dollars, i. e., 000 omitted.]
Debits to individual accounts.
its.

Debits to banks' and bankers' accounts.

District.
j May 28.

June 4.

| June 11.

June 18.
June

June 4.

May 28.
-

No .10—Kansas City:
Atchison
".
Bartlcsville, O k l a . . . .
Colorado Springs
Denver
Joplin
Kansas City, K a n s . .
Kansas City, Mo
Muskogco, Okla
Oklahoma. City
Omaha
Pueblo
St. Joseph
Topeka."
Tulsa
Wichita
No. 11—Dallas:
Albuquerque
Austin
Beaumont
Dallas
E l Paso
Fort Worth
Galveston
Houston
Shreveport
Texarkana
Tucson
Waco
No. 12.—San Francisco:
Berkeley
Boise
Fresno
Long Beach
Los Angeles
Oakland
Ogden
Pasadena
Portland
Reno
Sacramento
Salt Lake City
San Diego
San Francisco
San Jose
Seattle
Spokane
Stockton
Tacoma
Yakima

923
2,931
2,313
31,632
2,045
2,087
83,727
3,300
12,112
62,487
4,110
19,235
4,093
21,237
10,008

903 I
2,853 !
2,989 I
44,730
3,051 !
3.661 I
83', 991 •
3,374 I
12,858 I
55,293 !
3,992 i
17,843 !
4,893 !
21,236 i
9,044 [

1,180
2,368
4.031

1,053
2,995
3,893
28,105
3,393
3,869
95,059
4,161
12,818
51,849
4,055
19,994
4,665
21,766
10,902

37,003
3,107
3,589
83,507
2,990
12,394
61,159
4,874
19,163
5,243
22,105
9,930

30,385
5,677
1,734
1,685
3,305

1,628
7,614
2,969
28,255
7,953
18,468
7,363
31,406
5,632
1,347
1,803
3,676

33,764
7,482
22,S27
6,945
32,468
6,431
1,891
1,719
3,515

1,599
6,690
3,666
42,829
7,411
20,868
7,191
34,967
6,295
2,43S
1,66©
3,235

5,170
2,244
4,960
2,603
62,340
13,131
3,308
2,722
35,840
2,598
10,552
13,655
4,664
146,409
3,299
44,572
9.310
4; 287
11,073
2,047 !

2,312
3.212
6)019
2,839
52,064
11,231
3,243
3,195
34,446
2,413
11,182
14,175
4,616
153,045
3,128
40,078
9,718
5,218
8,749
2,013

2,331
2,599
6,228
3,272
59,899
13,393
4,367
3,289
40,128
2,745
11,401
14,927
5,473
151,578
3,638
43,061
10.194
5; 148
10,732
2,236

2,236
2,543
6,576
3,234
72,464
12,368
3,529
4)385
43,291
2,290
13,347
15,354
5,462
192,879
3,611
52,181
10.255
4)774
11,893
2,420

1,382
2,770
3,497
30,980
7,432
18,884
5,959

1,708
3,453
4,210

651
170
739

582
293
921
19,722
504.
5, 111
148,275
4,198
25,205
61,344
5,036
14,475
5,263
8,426
11,749

25,506

436

4,976
176,623
5,190
10,687
70,461
5,339
17,876
5,995
9,976
11,834
4,273
1,970

4,280
3,445
235
50,673
9,385
37,125
7,024
44,030
3,199
576
1,445
2,089

328

45,263 .
7,723
39,553
6,693
49,909
3,652
375

1,398
1,859
351

423
7,067
2,965
62
37,949
2,123
5,893
1,707
21,952
2,125
4,235
15,443
2,327
108,819
1,952
28,249
7,034
•2,895

4,808
3,031

73

45,189
3,385
5,135
1.744
24)545
2,249
4,193
15,800
1,145
108,657
2,086
23,889
8,285
2,619
8,123

6,870
177

250

June 11.

June 18.

--1,990
2.73P
1,681
37,860

2,137
1,780
2,069
35,876

5,232
189.305
5)185
23,015
68,725
6,397
23,735
4,870
11,614
15,220

8,110
188,685
6,658
24,806
63,971
6,197
22,632
4,121
21.327
14)041

5.778
2,893

4,370
13,228

66,865
12,523
4.8,040
8,821
57,717
3,939

78,763
10,013
44,475
10,65ft
52,137
3,839

1,709
2,642

1,121
2,900

434

488

561

64S

485

535

320

243

6,427
3,650

6,051
4,065

41,213
3,600
5,878
2,215
27,505
2,195
5,523
19,292
2,271
108,599
2,084
30,778
8,710
3,309
8,795
276

47,569
2,559
4,646
2,226
26,879
2,458
5,174
18,221
2,627
128,832
2,189
31.833
9)021
2,686
9,579

73

150

244

Recapitulation showingfiguresfor clearing-house centers reporting for each of the four weeks.

Federal Reserve district.

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

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




Number of
centers
included.

Debits to individual account.
May 28.

J u n e 4.

j J u n e 11.

403,922
375,350 i
413,129
4,719,568 j 5,131,754 | 5,228,139
372,312
367,390 !
352,348
444,226
506,383 S 487,615
132,028
142,606 ! 181,966
7I
200,958
187,915 i 225,445
15
941,720
869,147
936,725!
23 I
,
206,732
193.815
200,937
5 I 137,878
148,549
139,234
Hi
272,643
263.569
270,711
15 !
126,413
113)690
118,114
12 I
396,639
384,784
372,896
20|

12

i\

154 I 8,202,403

8,772,752 j 8.992,095

Debits to banks and bankers' account.
June 4.

June 18.

j June 11.

June 18.

190,874
1,644,763
351,908
446,783
j 128,545
148,696
j 845,303
191,104
161,438
346,459
I 162,996
I 265,557

206,137
216,119
1,647,081 1,775,183
427,602
352,223
533,192
421,600
117,079
148,169
133,392
169,632
734,223
815,S38
192,049 I
204.079
136,080 !
165)385
311,104 j
397,999
163,506 '
211.976
I 260,267 i
282)713

256,194
1,972,791
449,575
538,020
145,479
159,673
855.141
208)352
152,424
403,058
222,524
307,252

9,920,4.80 i 4,894,420

4,861,712 I 5,160,916

5,670,48a

458,735
5,597,192
453,877
612,803
184,698
212,748
1,111,833
261,129
154.927
268)577
138,849
465,092

I
i
i
!
!
i
j
i
!

664

FEDERAL RESERVE BULLETIN.

WHOLESALE PRICES.

In continuation of figures shown in the June
there are presented below monthly
index numbers of wholesale prices for the
period July, 1918, to May, 1919, compared with
like figures for May of previous years; also for
July, 1914, the month immediately preceding
the outbreak of the great war. The general
index number is that of the United States
Bureau of Labor Statistics. In addition there
are presented separate numbers for certain
particular classes of commodities in accordance
with plans announced in previous issues of the
BULLETIN

BULLETIN.

Quotations for nine commodities, namely,
flour (buckwheat, New York), apples (Baldwin,
fresh, Chicago), bananas (Jamaica 8s, New
York), ginghams (Amoskeag, 27-inch), men's
seamless cashmere hose, -overcoatings (soft faced,
black), and suitings (serge, 11-ounce, and clay
worsted, 12-ounce and 16-ounce) have been
omitted. On the other hand, quotations for
malt (standard, keg beer, New York), Spanish
olive oil, and tickings (Amoskeag, 32-inch),which
had been dropped temporarily, have been secured
for the month of May, and the commodities were
again included in the calculation of the index
numbers for the latter month. Index numbers for May are provisional, due to the fact
that certain data were not received in time to
render them available for use in the calculations.
During May, the upward movement of
wholesale prices noted in March and April has
continued. The general index number of the
Bureau of Labor Statistics has increased from
203 to 208, the same figure as for November,
1918. The increase is general, being exhibited
by each of the three groups. The index number for the group of producers7 goods, after
having decreased continuously from December
on, has again increased, the number for May
being 189 as compared with 186 for April.
While bar iron, lubricating oil, malt, and structural steel decreased in price, such decreases




JUI.T 1,

1919.

were more than offset b}^ increases in the prices
of cotton and worsted yarns, leather, red cedar
shingles, linseed oil and turpentine, silver,
tallow, glycerin, and oleo oil.
The index number for the group of consumers7 goods has again increased, from 211 to
215, the latter figure being but one point less
than the high level reached in December, 1918.
Decrease in price occurred in the case of relatively few commodities, among which should
be noted various meats, in particular fresh beef,
lamb and mutton, and veal, butter, vinegar,
one of the grades of whisky, wrapping paper,
and fresh milk as quoted in Chicago. On the
other hand, increase in price occurred for an
extended list of commodities, in particular
pork products, lard, fresh milk as quoted in
New York, eggs, potatoes, coffee, various
fruits, such as oranges, prunes and raisins,
oleomargarine, wheat flour, corn meal, soap,
various textile products, such as print cloths
and tickings, trouserings, and women's dress
goods, and shoes.
The increase in the index number for the
group of raw materials, from 200 to 203, is due
almost entirely to the increase in the prices of
farm products. The index number for the
latter subgroup has increased from 244 to 254.
Decreases in the prices of tobacco and rye were
more than offset by increases in the prices of
cotton, wheat, corn, oats and barley, hay, and
flax. The index number for the forest products subgroup shows a slight increase, from 145
to 146, due to increases in the prices of Douglas
fir and yellow-pine flooring. On the other
hand, the index numbers for both the animal and mineral products subgroups remain
unchanged, at 223 and 169, respectively.
Among the commodities included in the former
subgroup, decreases in the prices of cattle,
poultry, sheep, and wool were offset by
increases in the prices of hogs, hides, and silk,
while in the mineral products subgroup
decreases in the prices of iron ore and coke
were offset by increases in the prices of copper
ingots and anthracite coal

665

FEDERAL RESERVE BULLETIN.

JULY 1,1919.

Index numbers of wholesale prices in the United States for principal classes of commodities.
[Average price for 1913=100.]
Raw materials.
Year and month.

Farm
products.

July,fl914
May/1915
May, 1916
May, 1917
May, 1918
July, 1918
August, 1918
September, 1918.
October, 1918....
November, 1918..
December, 1918..
January, 1919
February, 1919...
March, 1919
April, 1919
May, 1919

Animal
X)roducts.

102
119 j
116
225
226
237
246
255
240
234
237
232
222
235
243
254

106
99
118
168
201
209
215
219
209
208
208
207
208
216
223
223

Mineral
products.

Forest
products.
97
93
98
108
1.38
140
143
143
143
150
150
147
148
149
145
146

114
196
173
180
180
180
181
183
182
177
173
171
169
169

Total raw
materials.

j
j
i
I
;
|
i
I
|
|
!
!

101
11.3
180
189
196
200
204
198
197
198 i
195 !
192 I
197
200 i
203 :

All commodities
Producers' Consumers' (Bureau of
Labor Stagoods.
goods.
tistics index
number).
92
97
141
189
192
196
199
203
205
205
199
194
191
190
186
190

103
102
115
179
194
202
205
209
210
21.4
216
212
201
206
210
215

!
j
I
!
|

99
1.00
118
181
191
198
202
207
204
206
206
202
197
200
203
206

In order to give a more concrete illustration j for certain commodities of a basic character,
of actual price movements there are also pre- !j The actual average monthly prices shown in
sen ted in the following table monthly actual the table have been abstracted from the records
and relative figures covering the same period i of the United States Bureau of Labor Statistics.
Average monthly wholesale prices of commodities.
[Average price for 1913=100.1
Corn, No. 3,
Chicago.
Year and month.

J u l y , 1914
May, 1915
May, 1916
May, ]917...
May, 1918
July, 1918
August 1918

Average Relaprice per tive
bushel. price.
SO. 7044
.7647
.7293
1.6180
1.5250
1. 5900
1. 6225
1.5313
1.3270
1.2675
1.4290
1.3750
1.2763
1.4588
1.5955
1.7613

.

September, 1918

October, 1918
November 1918
December 191S
J a n u a r y , 1919
F e b r u a r y 1919
March, 1919
A.pril, 1919
May 1919...

114
124
118
26?,
248
258
264
249
216
206
232
223
207
237
259
280

Hogs, light,
Chicago.

Year and month.

Julv, 1914
May, 1915
Mav 1916
Mav 1917
Alay 1918...
July,1918
August 1918.
September 191&
October 1918
November 1918
December 1Q18

January, 1919.
February 1919
March, 1919
\pril, 1919
May 3919 . . .




Average
price per
100
pounds.

. . .

S8.7563
7.6000
9. 7050
15.5000
17.5000
IS. 0000
19. 7750
20.0700
18.093S
17 7063
17 4400
17.4125
17.4688
18.8550
20.3813
20.7000

Wheat,
Cotton, middling, northern No. 1,
spring,
New Orleans.
Minneapolis.
Average
price per
pound.

Rela- Average
tive price per
price. bushel.

SO. 1331
.0900
.1257
. 1999
.2894
.2945
.3033
. 3578
.3150
. 3007
. 295S
.2850
. 2694
. 26S1
. 2670
. 2947

105
SO. 8971
71
1 5767
1.2146
99
2.9S06
157
228 • 2.1700
232
2.1700
239
2.2231
28?
2.2169
248
2.2155
237
2.2200
233
2.2205
224
2.2225
212
2.2350
211
2.3275
2.5890
210
232
2.5725

Wool, Ohio, }-3-

grades, scoured.

Rela- A vcrage
tive p n e e per
price. pound.
104
90
115
183
207
213
234
237
214
209
206
206
207
223
241
245

80.4444
.5714
. 6714
3.0714
1.4182
1.4365
1.4365
1.4365
1.4365
1. 4365
1 4365
1.1200
1.0909
1.2000
1.0909
1.0727

Rela- Average
tive price per
price. bushel.
103
181
139
341
248
248
255
254
254
254
254
254
256
266
296
295

Hemlock,
New York.

50.8210
1.5700
1.1554
2.9705
2.1700
2.2470
2.2325
2.2363
2.2345
2.2375
2.3088 •
2.3788
2.3450
2.3575
2.6300
2.7800

Cattle, steer;*,
good to choice,
Chicago.

Average
Rela- Drice per
tive
.100
price. pounds.
S3
159
117
301
220
22S
226
227
227
227
234
241
233
239
267
282

Yellow pine,
flooring.
New York.

S9.2188
8.5900
9.4600
12.4750
6.4167
17.6250
17.8250
18.4100
17.8563
18.15t53
18.3600
IS. 4125
18.4688
18.5750
18.3250
17. 7438

Hides, packers',
heavy native
steers, Chicago.

Rela- Average
tive price per
price. pound.
108
101
111
147
193
207
210
216
210
213
216
216
217
218
215
209

50.1938
. 2075
.2475
. 3150
.3110
.3240
.3000
. 3000
.3000
. 2900
. 2900
. 2S00
. 2800
. 2763
. 2950
.3513

Relative
price.
105
113
135
171
169
176
163
163
163
158
158
152
152
150
160
191

Coal, anthracite, Coal, bituminous,
run of mine,
stove, Xew York
Cincinnati.
tidewater.

Rela- Average Rela- Average Relative price per tive price per tive
price. long ton. price. short ton. price.

Relative
price.

Average
price per
M feet.

$24.5000
21. 5000
23.7500
26.0000
33.5000
34. 5000

101
89
98
107
138
142

842.0000
40.0000
40.0000

94
90
90

36.0000
3(3.0000
36.0000
36.0000
36.0000

149
149
149
149
149

60.0000
60.0000
63.0000
63.0000
63.0000
63.0000
63 0000
03.0000
64.0000
64.0000
64.0000
65.0000

135
135
141
141
141
141
111
141
144
144
144
14o

Rela- Average
tive price per
price. M feet.
94
121
143
227
301
305
305
305
305
305
305
255
232
255
232
228

Wheat, No. 2,
red winter,
Chicago.

S4.9726
4, 7506
5. 2740
5.6826
6.3000
6.596S
6.5992
6.9000
6.0000
7. S071
7.9500
7.9500
7.9500
7.9044
7.9045
7. 9857

98
94
104
112
124
130
130
136
136
151
157
157
157
156
156
158

S2.2000
2. 2000
2.2000
6.0000
3.8500
4.1000
4.1000
4.1000
4.1000
4.1000
4.1000
4.1000
4.0000
4.0000
4.0000
4.0000

100
100
100
273
175
186
186
1S6
186
186
1S6
186
182
182
182
182

666

FEDERAL, RESERVE BULLETIN.

JULY 1, 1919.

Average monthly wholesale prices of commodities—Continued.
[Average price for 1913-= 100.]

Coal, Tocahontas, Norfolk.

Coke, Connellsville.

Copper, ingot,
electrolytic,
New York.

Lead, pig,
desilverized,
New York.

"Petroleum, crude,
Pennsylvania,
at wells.

Pig iron , basic.

Year and month.
Average
price per
Jong ton.
S3.0000
2. 8500
3. 0000
7. 0000
4. 2190
4.6320
4.6320
4. 6320
4. 6320
4. 6320
4.6320
4.6320
4. 6320
4. 9000
4. 9000
4.9000

J u l y 1914...
ltfay 1915
M a v 1016 . .
M a v , 1917
May' 1918
Jiilv 1918
A u g u s t , 1918
September 1918
October 1918.
N o v e m b e r 1918
December 1918
J a n u a r y , 1919
F e b r u a r y , 1919
March 1919
April 1919..
Mav, 1919

Relative
price.
100
95
100
233
141
154
154
154
154
154
154
154
154
163
163
163

Cotton yarns,
northern cones,
10/1.

Average Relaprice per
tive
short ton. price.

Average
price per
pound.

Relative
price.

Average
price per
pound.

Relative
price.

Average
price per
barrel.

Relative
price.

Average
price per
long ton.

77
67
97
287
246
246
246
246
246
246
246
237
214
183
160
158

SO. 1310
. 1863
. 2850
.3100
. 2350
. 2550
.2600
.2600
. 2600
. 2600
. 2540
. 2038
.1731
. 1509
. 1530
.1600

85
118
181
197
149
162
165
165
165
165
161
130
110
96
97
102

$0.0390
. 0420
. 0750
. 0988
. 0891
. 0802
.0805
.0805
. 0805
. 0805
.0667
. 0558
. 0508
. 0524
. 0507
.0508

89
95
170
225
157
182
183
183
183
183
152
127
115
119
115
115

SI. 7500
1.3500
2. 6000
3.1000
4. 0000
4.0000
4.0000
4. 0000
4.0000
4.0000
4.0000
4. 0000
4. 0000
4. 0000
4.0000
4. 0000

71
55
106
127
163
163
103
163
163
163
163
163
163
163
163
163

$13.0000
12.5000
18. 0000
41.6000
32.0000
32.0000
32.0000
32. 0000
33.0000
33.0000
33.0000
30.0000
30. 0000
28.9375
25. 7500
25. 7500

$1. 8750
1.6250
2.3750
7. 0000
6. 0000
6.0000
6. 0000
6.0000
6. 0000
6.0000
6.0000
5.7813
5. 2188
4.4688
3.9000
3. 8437

Leather, sole,
hemlock No. 1.

Steel, billets,
Bessemer,
Pittsburgh.

Steel, plates,
tank, Pittsburgh.

Year and month.

Steel, rails, open
hearth, Pittsburgh.
.
_ .

Relative
price.

Average
price per
pound.

Relative
price.

Average
price per
pound.

Relative
price.

Average
price per
pound.

Relative
price.

Average
price per
pound.

Relative
price.

Average
price per
pound.

SO. 2150
. 1650
.2425
. 3650
.6332
.6412
.6400
.6100
.6100
.5927
. 5500
.5000
.4164
. 4132
. 4300
.4826

97
75
110
165
286
290
289
276
276
268
249
226
188
187
194
218

§0.3050
.2950
.3700
.5700
.4900
.4900
.4900
.4900
.4900
.4900
.4900
.4900
.4900
.4900
.4900
.4900

108
105
131
202
174
174
174
174
174
174
174
174
174
174
174
174

$19.0000
20.0000
45.0000
86.0000
47.5000
47.5000
47.5000
47.5000
47.5000
47. 5000
45.1000
43.5000
43.5000
42.2500
38. 5000
38. 5000

74
78
174
333
184
184
184
184
184
184
175
169
169
164
149
149

SO. 0113
.0115
.0338
.0575
.0325
.0325
. 0325
.0325
.0325
.0325
.0310
.0300
.0300
.0291
.0265
.0265

76
78
228
389
220
220
220
220
220
220
209
203
203
197
179
179

S30.0000
30.0000
30.0000
40.0000
57.0000
57.0000
57.0000
57.0000
57.0000
57.0000
57.0000
57.0000
57.0000
54. 5000
47.0000
47.0000

100
100
100
133
190
190
190
190
190
190
190
190
190
182
157
157

SO. 6500
.8200
1.0000
1.4000
2.1500
2.1500
2.1500
2.1500
2.1500
2.1500
2.0000
1.7500
1.7000
1.50®0
1. 5000
1.5000

Beef, carcass,
good native
steers, Chicago.

Coffee, Rio No. 7.

Flour, wheat,
standard patents,
1914-1917, 1919,
standard war,
1918, Minneapolis.
Average Relaprice per tive
barrel.
price.

Year and month.
Average
price per
pound.
J u l y , 1914...
.
May, 1915
May, 1916... .
May, 1917.
May, 1918
J u l v , 1918
August, 1918..
September, 1918
October, 1918 .
November, 1918
December, 1918
January 1919
F e b r u a r y , 1919. . . .
March, 1919
April, 1919..
. .
May, 1919




. . . .

. . .

Relative
price.

Average
price per
pound.

Relative
price.

SO. 1350
. 1213
. 1375
. 1600
. 2250
. 2400
.2420
. 2450
. 2450
. 2450
. 2450
. 2450
.2450
. 2450
.2450
.2430

104
94
106
124
174
185
187
189
189
189
189
189
189
189
189
188

SO. 0882
.0775
. 0975
. 1013
. 0873
.0855
.0853
.0959
.1040
.1069
.1725
.1547
. 1544
. 1602
.1695
.1931

79
70
88
91
78
77
77
86
93
96
155
139
139
144
152
173

$4.5938
7.8813
6.1900
14.8800
9.5250
10.7020
10.2100
10.2100
10.2100
10.2100
10.2100
10.2750
10. 5500
11.2125
12.2150
12.4188

100
172
135
325
208
233
223
223
223
223
223
224
230
245
266
271

Hams, smoked,
Chicago.

Average
price per
pound.
SO.1769
.1513
.1845
. 2655
.3025
.3025
.3225
. 3281
.3361
. 3541
.3670
.3494
. 3338
.3381
.3595
.3769

Illuminating oil,
150 s fire test,
New York.

Relative
price.
84
106
129
180
277
277
277
277
277
277
257
225
219
193
193
193-

Sugar, granulated.
New York.

Average
price per
gallon.

Relative
price.

Average
price per
pound.

•SO. 1200
106
.1200
91
.1200
111
.1200
160
.1700
182
182
.1710
194
. 1750
197
. 1750
202
. 1750
213
.1750
221 ,
.1750
. 1750
210
. 1750
201
.1810
203
. 1850
216
. 1850
227

97
97
97
97
138
139
142
142
142
142
142
142
142
147
150
150

$0.0420
. 0588
.0746
.0794
. 0730
. 0735
.0735
. 0845
.0882
.0882
.0882
.0882
.0882
. 0S82
.0882
.0882

Relative
price.

88
85
122
283
218
218
218
218
224
221
224
204
204
197
175
175

Worsted yarns,
2-32's crossbred.

Average
price per
pound.
J u l v , 1914
Mav 1915
Mav, 1916
Mav 1917
M P v, 1918
JulV, 1918
Aucust 1918
S e p t e m b e r , 1918
October 1918
N o v e m b e r , 1918
December, 1918
Tanuarv, 1919
F e b r u a r y , 1919
March, 1919
April, 19J 9
Mav. 1919

Relative
price.

Relative
price.
98
138
175
186
171
172
172
198
207
207
207
207
207
2»7
207
207

JULY 1,1919.

FEDERAL RESERVE BULLETIN.

667

DISCOUNT AND INTEREST RATES.
In the following tables are presented actual
discount and interest rates prevailing in the
various cities in which the several Federal
Reserve Banks and their branches are located
during the 30-day periods ending May 15 and
June 15; 1919. Quotations are given for prime
commercial paper, both customers' and purchased in the open market, interbank loans,
bankers' acceptances, and paper secured by
prime stock exchange or other current collateral. Separate rates are quoted for paper
of longer or shorter maturities in the firstnamed and last-named classes. In addition,
quotations are given for commodity paper
secured by warehouse receipts and for cattle
loans, as reported from centers in which such
paper is current.
Quotations are also given of rates charged
on ordinary loans to customers secured by
Liberty bonds and certificates of indebtedness.
Assistance to customers to enable them to
purchase such Government obligations has
generally been extended at lower rates, either
at the rate borne by such obligations or at a
rate slightly higher.
The table also shows
quotations in New York for demand paper
secured by prime bankers1 acceptances, a type
of paper which made its appearance in the




New York market some months ago. Quotations for new types of paper will be added from
time to time as deemed of interest.
During the period under review, no marked
movement in rates on the whole is evident.
In certain centers, in particular Minneapolis
and San Francisco, rates in general have
declined. In other centers a somewhat firmer
tone in rates is noted, although no pronounced
instances of general increase in rates are noted.
The low rates for customers' commercial paper
on the whole have decreased, as have to a less
marked extent both low and customary rates
for commercial paper purchased in the open
market. While the New York rate for demand
paper secured by prime stock exchange collateral reached a high level of 10 per cent during the period, changes in rates for this type of
paper on the whole exhibit an approximately
equal number of instances of increase and
decrease. Rates on time paper secured by
such collateral on the whole show a decrease.
An increase in the low rates for paper secured
by Liberty bonds and certificates of indebtedness is noted, although customary rates for
this type of paper show a decrease. No
marked changes are exhibited by the rates for
interbank loans and for bankers' acceptances.

Discount and interest rales'prevailingin various centers.
00

DURING 30-DAY P E R I O D E N D I N G MAY 15, 1019.
Prime commercial paper.
District, j

Citv.

30 to 90
days.
No.
No.
No.
No.
No.
No.

No.
No.
No.
No.
No.
No.

' //. L. a

!
1..
Boston
6
2.. i New York'....; 6
3.. ! Philadelphia..! 6
4.. i Cleveland
j6
i Pittsburgh...., 0
i Cincinnati
j6
| 6
5.. i Richmond
I Baltimore
j6
i7
(>.. | Atlanta
i Birmingham..! 8
! Jacksonville...i 8
i New Orleans..! 6
!6
7.. J Chicago
I Detroit
i6
8.. i St. Louis
6
LouisvilJe
i Memphis
i Little R o c k . . .
9... .! Minneapolis...
.1.0.. . i Kansas City...
i Omaha
j Denver
!
11.. . Dallas
j Kl Paso
12.. .! Ban Francisco.
! Portland
I Seattle
j Spokane
; Salt "Lake City J 8




Open market.

Customers.

30 to 90
days.

4 too
months.

II.
5 51 6
5 51-5 6
5 ok 6
5 6 6
5 5£
6
51 G
oj fi 6
5J fi 6
51 6 7
6 6 8
6 7 8
51 6 61
5 5j-(
Rl fi

L.

a
II.
57, C
5 oH 6
51 5J- 5.J
b{

5
55
6
5*
51
51
6
6
51
5
51
51
51
5
51
5*
5

L. C.
5 o\
4.} 5i
5^
51

il
6
8
fi
6

4 to 6
months.
L. C.
6
6

5 5|
51 6J

5}

5£

51
51
51
51

51 5
fi 6
51 H

51
6"
51

6
6
51
6

51 5 5i
6 51 5/
i>l •)
51 5
6
5
51 5
51 5
6
6
6
5
6
5
6

6
51
5}
6
6
5J

5

51 5-1
6
6
fi 51
6
5

5?.
6
6
oi-

6

6
6
6
6
5j-5i 51 51 5-1-5J
51 51 5 5""
5 51 fi 5 o.

« i 51 5-1
6 I 51 5

6
6
6
fi

6
7
7

1

!

! "
6

I

!

51

5

51

51 5

51 8

Bankers' acceptances,
60 to 90 days.
Indorsed,
._

41
4i
5
5
5

S-5-J
5
5
6
51

5
5
6
6
5
51
51

j

j

Collateral loans—stock exchange or
other current.

Cattle
loans.

3 to 6
months.

j Unindorsed. | Demand. ; 3 months.
|
... i
'."

II.
6
6
6
6
6

r 54
5J-6
i 6

H. L.

a

5
6
6
6
51
5'
51

5

5

•1 9

0
51
6
6
6
6
6
7
6
51-6
6
51
6
6
6
fi
6
fi
6
6
8

i Interbank
1 loans.

Secured by
i Secured by Liberty
j warehouse bonds and
receipts, certificates
of indebtetc.
edness.
II. L. C.

•41

5

t ?
??
n
6
6
6

5
6
6
6
6

6
6
6
7

51
6
6
6
6

Rates for demand paper secured by prime bankers' acceptances, high 6, low 41, customary 41-5.

II. L. C.

6
6

6 6
5-k 6

6
6
fi
7

5£
5J
6
5J

7

i

5 6
5 5i-

6
6
6
6

6

6
6 6
5

51
51
51 6
8 6
8 b\
8 6
10 . 6
1) 8

7-8
6
6
8
8

41 5
4*5
5 6
5 51
5 6
5
41
6
5
5
6
41
41
6

6
66
7
6
6
6
6
7

Discount and interest rates prevailing in various centers—Continued.
DURING 30-DAY PERIOD ENDING J U N E 14, 1919.
Prime commercial paper.
Customers.

Open market.

Interbank
loans.

4 to 6
months.
No.!..
No. 2..
No. 3..
No. 4..
No. o..
No. 6...

No. 7..
No. 8..
No. 9...
No. 10..
No. 11..
No. 12..

73oston
I 6
New Y o r k i . . ! 6 5
Philadelphia. 6 5
6 5
Cleveland
Pittsburgh
6 5
6 51
Cincinnati
6 54
Richmond
6 5K 6
Baltimore
7 5" 6
Atlanta
6
Birmingham..
6
Jacksonville...
7
New Orleans..
6
6 5 o
Chicago
6
I Detroit
I St. Louis
5
I Louisville
6 54
j Memphis
| Little Rock... 7 6
j Minneapolis... 515J
Kansas City... 7 5
Omaha
6 54
8 54
Denver
Dallas
8 6
8 6 8
El Paso
i
San Francisco. fi 5 54-6
Portland
8 5 6
Seattle
8 G 7
Spokane
Salt Lake City 8 6 7

Bankers' accex)tances,
60 to 90 days.

30 to 90
days.

H. L. C.

II. L. C.

IT. L.

5-i 5

Collateral loans—stock exchange or
other current.

Secured by
Liberty

CO
CO

5-1 5 53
6 4J 5-5^

Demand.

oi 5
5 51

5Hf 5

5 5 5
6 51 o\

5 54
fi G fi

51 54 51

G 44 5H>
8 ft fi
6 54 6

6
8
6

6 5 5H

f

5* 5 54
fi ft.', G

5i 54 51

f

6 5 5J-5?.
51 oi- 5.V
6" fti
51 54 o |
6 5
oi 5 51
5 5

-i - -i
5* 5 51-

G

(f 5
51 5
51 5
6 6
6 5
6 5

6"
54
54
6
51
51

5* 5-V-6
ft G
54 6

51
6
6
6

5
6
54
5

6 G 6
ftJt 5 54
51 5 54

5 I 0 54
S

6
fi
5*
6

fi 6
5 *>4
5 54
5 54

54 5 54

54

a

5J 5 54

6
6
of
6

5
5
5?,
o"

5i
5i
5-J
6

5^ 51
54 54-6
7
6

6
6
51 fi

7

6

7

44-lft
41 44 41

6
41

44
44

44 4ft 44

41

44

44

7

5

7

5

6

6
6

4V 4§6
6

fi

44

5

6
7 5 6
7 5h 6
6 6" 6
6 G G
6 G 6
6 6 6
7 6 6

6

6

41 5

8 6

t




1

Rates for demand paper secured by prime bankers' acceptances, high 6, low 41, customary 4^-5.

CO

670

JULY 1, 1919.

FEDERAL RESERVE BULLETIN.

PHYSICAL VOLUME OF TRADE.
In continuation of tables in the June FEDthere are presented
in the following tables certain data relative to
the physical volume of trade. The January
ERAL RESERVE BULLETIN

issue contains a description of the methods employed in the compilation of the data and the
construction of the accompanying index numbers. Additional material will be presented
from time to time as reliable figures are
obtained.

Live-stock movements.
[Bureau of Markets.]
Receipts.

Shipments.

Sheep, 60

markets.

| Cattle and
i calves, 60
! markets.

Horses and
mules, 44
markets.

Hogs, 54
markets.

Sheep, 54

markets.

Horses, and
mules, 44
markets.

Head.
782,722

Head.
1,075,899

Head.
511,048

Head.
34,658

Head.
2,404,327

i Cattle and

J

Tot'P

Total, all
kinds.

1918.

Head.
1,858,154

Head.
3,374,149

Head.
1,142,599

Head.
34,777

July
August
September.
October
November,.
December -.

2,110,835
2,009,744
2,799,913
2,832,022
2,625,381
2,132,491

3,113,281
2,476,190
2,386,475
3,421,641
4,605.158
5,569; 356

1,585,735
2,129,325
3,303,955
3,234,026
2,535,115
1,640,365

51,393
80,122
124,201
146,072
135,344
72,471

6,861,244 I
665,800
6,695,381 I
850,363
8,6.14,544
1,219,333
9,633,761
1,300,084
9,900,998
1,232,771
9,414,683
785,770

949,301
849,618
786,917
896,258
1,216,860
1,429,251

734,539
1,198,691
2,059,990
2,069,057
1,446,523
716,100

45,549
76,653
114,023
140,845
131,308
71,243

2,395,189
2,975,325
4,180,263
4,406,244
4,027,462
3,002,364

1919.
January
February
March
April
Mav

2, 111, 704
1,440,329
1,501,597
1,751,943
1,822,410

5,861,685
4,404,751
3,632,874
3,668,210
3,863,735

1,567,613
1,131,805
1,216,988
1,388,732
1,425,018

110,411
82,526
68,938
50,770
33,977

9,651,413
7,059,411
6,420,397
6,859,655
7,145,190

1,546,875
1,288,134
1,272,654
1,107,411
1,181,745

60S,016
418,827
481,907
575,136
614,375

106,459
76,512
64,332
49,634
34,658

3,022,518
2,311,799
2,382,786
2,436,780
2,613,764

May-

Head.
6,409,679 i

761,168
528,326
563,893
698,599
788,086

Receipts and shipments of live stock at 15 western markets.

"

[Chicago, Kansas City, Oklahoma City", Omaha, St. Louis, St. Joseph, St. Paul, Sioux City, Cincinnati, Cleveland, Denver, Fort Worth
Indianapolis, Louisville, Wichita.]
RECEIPTS.
[Monthly average, 1911-1913=100.]
Cattle and calves.
Head.

May

1918.

Head.

Sheep.
Head.

Relative.

Horses and mules.

Relative, j

Head.

Relative.

Total, all kinds.
Head.

Relative.

1,276,792

127

2,654,012

121

742,358

54

22,090

48

4,095,252

102

1.697,193
1,'588,553
2,249,017
2,267,534
2,053,359
1,706,9-15

163
158
223
225
204
169

2,530,414 j
1,970,086 I
1,775,842 i
2,570,525 i
3,431,782 I
4,197,313 j

115
90
81
117
156
191

1,141,488
1,424,677
2,408,609
2,357,524
1,677,537
1,114,761

84
104
176
173
123
82

36,782
54,271
82,656
83,574
64,4S2
36,153

80
118
180
182
140
79

5,405,877
5,037,587
6,516,124
7,279,157
7,227,160
7,055,172

117
109
141
158
156
153

1,656.016
1,096; 118
1, 094,614
1,255,379
1,262,005

July
August
September
October
November
December
January
February
March
April
May

Relative.

Hogs.

164
116
109
125
125

4,603,335 i
3,451,894 I
2,842,663 |
2,823,484 j
3,049,223 |

209
168
129
128
139

1,079,377
774,881
847,842
970,070
934,613

56,631
48,780
41,805
31,509
21,345

123
114
91
68
46

7,395,419
5,371,679
4,820,924
5,0S0,142
5,267,240

160
125
105
110
114

1919.

i

SHIPMENTS.
May

1918.

January..
February.
March
April
May




1919.

502,101

123

495,211
652,440
932,131
994,943
921.831
588,425

July
August.
September.
October
November.,
December..

589,362
404,296
423,819
506,835
530,153

i
146
137
124
101
100.
136
163

256,747

51

21,849

53

1,489,676

104

122
160
229
245
227
145

708,979 |
662,728
599,577
488,298
486,460
659,432
787,461

483,151
751,886
1,426,120
1,479,774
903,283
445,987

96
149
283
294
179
89

31,379
51,923
74,473
84,393
63,589
37,072

76
127
182
206
155

1,672,469
2,055,826
2,921,022
3,045,570
2,548,135
1,858,945

116
143
203
212
177
129

115
107
104
125
130

988,035
881,507
925,802
748,437
787,009'

204
195
191
154
162

357,386
240,815
2S9,742
319,625
290,803

71
51
58
63
58

56,252
47,829
41,837
29,974
18,865

138
125
102
73

1,991,065
1,574,447
1,681,200
1,604,871
1,626, S30

139
118
117
112
113

671

FEDERAL RESERVE BULLETIN.

JULY 1,1919.

Exjyorls of certain meat products.
[Department of Commerce.]
[Monthly average 1911-1913=100.]
Beef, canned.

Pounds,

j Beer, pickled !
! and other cured: :

Beef, fresh.

Pounds.

Relative.

IIam and shoulders, cured.

Bacon.

Pounds. | ™ £ Pounds. j * ^ | Pounds. | ™£

1918.

Pounds,

g ^

Pounds,

May

16,693,716 2,520 j 59.984.668 4,836 j 6,109,779

229 142.012,264 j 848

!
i
50.635,296 | 341 . 79,750,924 j

181 4,272,218 !

m

July
August
September..
October
November..
December..

13,526,800
17,129,337
7,349,591
9,999,121
13,313.420
7,776i 239

99 |ll9,893,655 ; 716
65 ! 68,857,586 i411
113 I 41.621,488
249
~~" 58.131,739
347
72;861,969
435
; ,
142 126,437,385
755

55,368,812 I 371 68,600,261 I
! 45,816,637 ; 307 51,920,658 I
33,267,902 i
i 36,190,919 ! 242
25,430,106 I 17046,025,020 i
I 20.127.671 135 27,285.088 I
j 38;939:568 261 37,724:398 !

4,676,888 I
3,032.954 I
2,843:374 !
2,089,654 !
2,783,873 !
2,025,778 j

106

226
146
140
100
VA

i 54,840,433
j 49.283,053
! 85;712,426
jl09.569.968
i 49; 707,874

2,273,683 :
1,956; 362 ;
2,14i;508 i
2,494,454 i
2,095,072 ;

51
47

1919.
January
February...
March..'....
April
May

!

Pickled pork.

Lard.

;2,042
12,585
11,109
11,509
2,009
1,174

32,O")6,O16
45,160,708
34,071,816
26,449,372
62,835,161
34,161,848

| ''

12,584 \ 2,651,413
|3,641 1,742,970
2,747 3,009,998 i
J2,132 5,752,660 i
15,065 4,291,030
i2,754 3,786,847

I

i
12,636,060
8,151,723
8,997,973
2,896,759
5,669,232

11,907
il,318
1,358
! 437
i 856

17,436,495
13;729,993
14,651.276
2i; 639; 915
14,872.987

;i,406 i 6,030,937
1,186 | 3,635,120
, ,
1,181
11.744 3,749,394
I.199 2'. 673,681
2:957,163

101,000,122
114,842.525
:i">l,086',397
1141,814,255
! 68,957,465

603
735
902
847
412

|
i
i
i
!

367
354
574
734
333

37,850,338
68,972,779
97; 239.435
86,555,951
55,807,234

86
168
221
197
127

64
47

46

5G
47

Grain and fiour.
[U. 8. Food Administration.]
GRAIN MOVEMENT.
[In thousands of bushels; i. e., 000 omitted.]
Corn.

Wheat.

Receipts.

Shipments.

Stocks at
close of
month.

Receipts.

Shipments.

Oats.
Stocks at
close of
month.

Shipments.

Receipts

Stocks at
close of
month.

1918.
June
July
August...
September
October
November.
December.
January...
February.
March
April
Mav

196.060
287; 652
286.200
241.260
155;665
178,916
1919.

94.823
160'. 162
ISO!636
150.077
138:438
127,612

12,415
81,422
163.027
246', 690
286', 169
254.474
253,767

59,466
48,131
62,137
59;437
47,024
59.237

54,792
42.999
46;453
47,501
.41,886
50,312

37,794
31.919
25;559
28'. 522
25', 727
21,646
23,427

103.302
60,047
72,265
80.673
S6;738 ;

63,992
51,662
75,917
88,222
84,990

245,683
219.306
169,162
HO', 778
64,326

85,816
36:663
34:888
46.609
38,142

68,769
37,601
40,982
45 327
37,771

30,448
27.365
19,794
19.745
18,313

Shipments.

87,893
124.597
102;510
107,693
95,008
81:220

86 917
57,599

80,893
58.920
68:445
69,313
7-1.437

61^773
69;461

Rye.

Barley.

Receipts.

90.006
177:321
126:138
HO', 620
86.871
HO,199

Stocks a t
close of
month.

Receipts.

Shipments.

2 024
4 440
7'409

39.097
37.923
86,030
104,739
103.943
88,300
83,363"
85,811
82,025

70. m

01:257
53,845

Tctfii grains
Stocks at
close of
month.

Receipts.

Shipments.

363 291

Stocks a t
close of
month.

1918.
June
July
August . .
September
October...
November
December.
January.
February.
March
April...
May




14,285
21 340
27 002
23.889
22.697
23 255

7,077
9 923
15;295
19'. 8-W
21.153
22,287

10.606
16'. 984
27 174
37". 782
40,670
39.991
40.320

3.474
8' 422
16.092
20,667
17.521
15:721

24.055
16 432
20'. 775
19 646

23.026
17.231
22'. 863
23;8S9
27.663

39.673
38'. 886
36.528
31,985
25,522

14,280
7.857
10.749
14!830
1S.P08

S 721

2,181
2 912
f 128
12.8.>1
17.309
19.199
25", 779

•J1 ~ -ye*
45.1 87M
329.778
3 . " . 328

246. 6P.9
342 13ft
822.303
340.161
310,037
290.152
•

9.180
9 419
15 798
14.927
25.42S

30 031
27.906
23.362
22 393
15,526

:<H,370
178 598
196;685
22H 531
235.840

245,860
174.S33
221.005
241 678
250.2S7

1919.
.

102,093
171.160
307,91-«
430,5S7
473,818
423,610
426,656
431,640
395'. 548
319.257
246 158
177,532

672

FEDERAL, RESERVE BULLETIN.

JULY 1,

1919.

Grain and flour—Continued.
WHEAT FLOUR PRODUCTION.
[In thousands of barrels; i. e., 000 omitted.]
Stocks at
mills at close
of month.**

Production.

June
July
August
SeDtember
October
November....
December

1918.

1,109
1,606
2,388
3,064
3,422
3,387
3,260

6,780
10;391
11,835
11,752
11,175
11,759

Stocks at
mills at close
of month.

Production.
1919.

January

10 593
7.736
10,498
11,274
lO', 738

February..
March..
\ pril

Mav

3 341
3,544
3.419
3.145
3; 021

Receipts of grain and flour at 17 interior centers.
[Chicago, Cleveland, Detroit, Duluth, Indianapolis, Kansas City, Little Rock, Louisville, Memphis, Milwaukee, Minneapolis, Omaha, Peoria
St. Louis, Spokane, Toledo, Wichita; receipts offlournot available for Cleveland, Detroit, Indianapolis, Louisville, Omaha, Spokane, Toledo,
and Wichita.]
[Compiled from reports of trade organizations at these cities.]
[Monthly average, 1911-1913=100.]
Corn.

Wheat.
RelaBushels. tive.
1918.
May

Bushels.

Rye.

Oats.

Total grain.

Barley.

RelaRelative. Bushels. tive. Bushels.!

Total grain a n d
ffour.i

Flour.

Bushels. ^ - B a r r e l s . ! ^ - [ B u s h e l s ,
i l

Bushels.

i •
I 7,228,489

2719,493,705

87 21,255,916

: 52,133,425

67.! 1,919,496;

I 60,771,157!

70

July
|44,169,603
August.... 191,448,672
Scptember.j77,091,253
October..-| 65,60S, 905
November. 40,199,988
December. !55,592,441

164 22,992,582
33916,389,017
286 23,546,962
243:23,877,650
14915,869,505
20618,008,635

102 27,467,790
73 51,129,614
105 36,474,801
106131,973,893
7128,768,648
80130,773,422

136 482,2471
253 2,
1,235,394!
1814, 443,850!
i, ,
158 J, 382,270:
5,382,
142 6,340,380
152 6,807,076

441 1,038,933
202j 4,490,2011
401 i 7,773.0731
4861 7,92i;545!
573' 9,193,786!
615 8,792,752!

14! 96,151,155
63 165,692,928;
108.149,329,939
110134,764,263
1281100,372,307
123*119,974,326:

12311,695,506
213'2,238,943i
1922,583,888!
173 2,681,070!
1202,485,352,!
15411,935,524

87!l03,780,932
114!l75,768,172:
132ll60,957,435:
137'l46,829,078127:111,556,391
99! 128,684,184:

120
203
186
169
129
148

128^22,945,659
6215,961,423
6017,076,822
82520,063,678

114 5,615,054
85 1,406,029
2:
t,955,130
85 4'
99 5,498,493i

507
233
448
497

125!
98!
163
134

1171,396,888
7211,032,368!
781,485,320;
83!l,990,349!

71 i 97,174,519
56 >, 653,609
76 67,639,876,
102 73,663,173

112
70
78
85

1919. j
January... '24,65,2,641
February. -14,049,055
March..*...! 13,768,496
April
11,208,305

I
9l'28,731,387
5613,034,852
51113,431,797
4218,301,721

i

105

678,320j

61= 3,476,995

8, 943, 782
6, 536j594
11, 723, 691
9» 634, 405

90,888,523
55,722,807
60,955,936
64,706.602

1 Flour reduced to its equivalent in wheat on basis of 4£ bushels to barrel.

Shipments of grain and flour at 14 interior centers.
[Chicago, Cleveland, Detroit, Duluth, Kansas City, Little Rock, Louisville, Milwaukee, Minneapolis, Omaha, Peoria, St. Louis, Toledo, Wichita;
shipments offlournot available for Cleveland, Detroit, Louisville, Omaha, Toledo, and Wichita.]
Wheat.

Corn.

Rye.

Oats.

Total grain.

Barley.

Total grain and
flour. 1

Flour.

RelaRelaRelaRelaRela-!
RelaBushels. tive- Bushels. tive. Bushels. tive. Bushels] ama- Bushels. tive. Bushels. tive. : Barrels. tive. Bushels. Relative.
1918.
1,732,123
May
July
13,743,302
38,853,689
August
September. 28,676,514
October... 28,532,293
N o v e m b e r . j42,083,808
D e c e m b e r . 36,932,880

11213,782,116

97 21,518,157

142

89| 9,692,841
252 9,131,678
186| 9,507,098
185111,684,762
273110,583,718
239 9,996,598

68181,056,944
1,092,361
64 23!
1,002,316
67 25!
),
82 23! 822,044
75 1,564,983
1,850,316
7123!

119 284,957.
152 773,548:
1651 ,068,641!
57 ',725,686
151 4:
175 ,
17/ i\ 770,708!
157 2.136,274

37;
109
151!
66Si
674j
302;

903,935
807,119
3,238,586
5,298,740
4,165,066
4,300,906

23
21
83
136
107
110

42,661,979
72,658,395
67,493,155
74,063,525
88,168,283
77,216,974

86 3,057,918
147 3,831,826
137:4,433,259
1504,801,932j
178:4,597,360|
156 4,241,406i

56,422,610
89,901,6121
87,442,821
95,672,219
136 108,856,403
125 96.303,301

87
139
135
148
168
149

64 13,
1,488,569
62 8,649,063
96 7,544,393
1991.5,708,842

9519,'
9,769,237
65 13,1
3,603,691
53 16, ]
6,183,222
11116,019,086

130 794,028;
96 404,365:
107 3,720,930
105 8,143,580

112;
61;
526;
115!

4,718.631
6,006; 178
6,049,703
6,632,763

121
165
155
170

48,704,996
37,540,141!
48', 356,120|
77,268,599;

99^2, 796,463!
8111,932,2581
98 3,039,020|
156 3,532,772!

83
61
90
104

61,289,0S0:
46,235,302!
62,031,710!
93,166,073|

95
77
96
144

475,9

3,384,561

87 40,922,919

832,910,223

86 54,018,923i
90
113
131
142

84

1919.

January... 9,934,531
February.. 8,876,844
March
14,857,872
April
30,764,328




1 Flour reduced to its equivalent in w h e a t on basis of 4.} bushels to barrel.

673

FEDERAL RESERVE BULLETIN.

JULY 1,1919.

Receipts of grain and flour at nine seaboard centers.
3»3ton, New York, Philadelphia, Baltimore, New Orleans, San Francisco, Portland (Oreg.), Seattle, Tacoma; receipts of flour not available for
Seattle and Tacoma.]
[Compiled from reports of trade organizations at these cities.]
[Monthly average 1911-1913=100.1
Wheat.

Corn.

Barley.

Rye.

Oats.

Total grain.

Total grain
and flour.i

Flour.

RelaRelaRelaRelaBushels. tive. B u s h e l s - j - - Bushels.! ! 5®}?"; Bushels.1 tive. Bushels. tive. Bushels. ! 32?- Barrels. i tive. Bushels. Relative.
tive.
tive.
1918.

2,027,113

16'3,090,808!

87 j 12,387,045!

261! 157,885

1111,387,738

8419,050,589j

841,652,896

15826,488,621!

97

.July
August
September
October
November
December

3,515,673
23,930,107
23,786,074
18,778,538
9,854,356
24,221,863

2811,128,285!
190i L, 473,105;
189; 582,858!
149 519,755:
78 786,141:
192 1,273.489

32!7,122,372:
4112,970,3411
165,304,250,
1516,662,972
2215,253,154!
36J9,817,268;

150 86,551
61! 802,582
63. 170,8471 120; 714,103
112! 435,549: 307! 730,332
140 2,332,761! L6421 887,396
11111,332,239- """ 653,880
207:1,107,437; 779 1,915,831

561,266,706
129 589,303
136! 783,902
1291,543,121:
791,656,2051
169 3,258,924;

12l!l8,355,64o!
5631,910,367:
75J34,366,620!
148136,125,467
159125,332,693i
312153,001,046!

67
116
125
132
92
193

1919.
January
February
March
April
May

9,768,801
7,805,811
13,789,851
12,581,874
14,157,852

78 1,411,368
66! 783,263
109! 636,127
100! 1,089.425
112|l,5S8;571-

40*9,275,187
244,713,794!
18 3,254,914!
31|4,804,521:
4515,642,176.

195 566,191!
106 2.299,664!
69 3', 880,4.24!
975,069,529;
1197,061,04S:

48:12,655,463!
43129,258,503:
44i30,839,061i
53i29,181,422i
3917,879,77O;
115 38,335,888;
|
105 22,759,871
64J16,597,986
138 23,847,270
112I25,197,921
215 32,011,059

100 2,026,246'
781,302,061
1051,644,676
1112,519,370
1412,535,547

194:31,877,978|
134 22,457,261!
157 31,248,312
244 36.670,086 !
243 43;421,021

116
88
114
134
158

May.

I

1

3981,738,326
1,734: 995,454
2,7312,285,954
3,5881,853.372
4.970;3,56^412

Flour reduced to its equivalent in wheat on basis of 4£ bushels to barrel.

Stocks of grain at eight seaboard centers at close of month.
[Boston, New York, Philadelphia, Baltimore, New Orleans, Newport News, Galveston, San Francisco.]
[Compiled from reports of trade organizations at these cities.]
[Bushels.]
Wheat.

Oats.

Corn.

Rye.

Barley.
--

1918,

May
July
August
SoDternber
October
November
December

;

388,732

!

,

3,384,460
16,041,604
! 14' 313,717
13,423,169
13,904,426
14,359,694
:
1919.

January
February
March
April
May

!
!
:
•
I
:

15,365,491
12.635,613
12" 732,472
7,448,992
7.913,162

2,521,136 i 11,459,6
736,504!
649,169
181,619 i
115,879 i
252,225;
302,980 :

| Total grain.
!

89,076 j 1,443,053

15,901,686

4,136,167 1
28.633
1,059,197
9,344,967
2,464,705 | 153' 275 1,720,251 21,029,004
3,153,590
144,646 ! 2,208,017 20,001,589
4,591,014
1,550,686 '•• 2,697,141
22,377,889
3,548,473 2,385,828 I 2,845,916 22,936,868
6,074,067
2,248,272 ! 2,767,606 25,752,619

645,317 5,495,937
417,520 ; 6,110,159
346,543 i 5,650,120
464,503 I 5,335,971
44S,020 ! 4,047,059

1,972,696
1,735,876
1,920,348
3,434,873
1,690.800

3,047,346
3,930,465
4,403,665
5,420,013
4,263,510

26,526,787
24,829,633
25,053,148
22,104,352
18,362.611

NOTE.—Figures for San Francesco include also stocks at Port Costa and Stockton.

California shipments of citrus and deciduous fruits.
Oranges.

Carloads.

May

1918.




Relative.

Total citrus fruits.

Carloads. I Relative.
i

I
i

Total
deciduous
fruits.

Carloads. ' Relative. \ Carloads.
I

1,957

80

824

203

2,781 I

914
767
549
485
1,125
3,565

July
August
September
October
November
December
January
February
March
April
May

Lemons.

37
31
22
20
46
146

561
732
275
639
676
722

139
181
68
158
167
178

1,475
1,499
824
1,124
1,801
4,287

52
53
29
39
63
150

j
i
j
i
i
'

3,758
9,126
5,879
7,143
1,04.4
267

3,120
3,180
5,113
5,450
5,888

128
139

531
658
897
1,038
1,501

131
174
221
256
371

3,651
3,838
6,010
6,488
7,389

128
144
211
228
259

I
!
I
!
!

109
198
67
36
276

118

1919.

223
241

674

FEDERAL RESERVE BULLETIN.

JULY 1, 1919.

Sugar.
[Data of International Sugar Committee for ports of Boston, New York, Philadelphia, Savanriah, New Orleans, Galveston, San Francisco.]
[Tons of 2,210 pounds.]

Receipts.

!

Raw stocks
at close of
month.

Meltings.

Receipts.

Raw stocks
at close of
month.

Meltings.

1919.

1918.
431,757
288,449
218,690
176,867
242,912
138,141
92,785

July
August
September.
October
November..
December..

155,963 j
','
135,061 j;
100,392 |
56 978 !
77,233 i
50,989
13,774

385,492 !
263,383
210,745
207,566
172,528
123,091

January..
February
March./.
April.
May:

243,806
389,815
355,710
450,938
471,205

197,145
337,420
361,010
387,548
446,685

66,189
122,757
106,889
185,315
201,301

[Data for ports of New York, Boston, Philadelphia.]
[Weekly Statistical Sugar Trade Journal.]
[Tons of 2,240 pounds. Monthly average 1911-1913=100.]

Receipts.

Tons.

Tons.

1918.
July
August
September
October
November

i 186,225
; 159,252
i 145,555
;
151,703
\ 139,343

1918.
December

'•
! 316,464

May

Raw stocks at
close of month.

Receipts.

55,322
39,375
46,869
42.522
43;112

221,000
175,000
139,000
156,000
139,000

Relative.

Tons.

Relative.

Relative.

58,751

32

92,000

50

11,490

172,054
283,172
232,471
I 318,492
325,736

93
165
126
173
177

147,000
229,000
261,000 !
277,000 i
307,000 i

134
142
151
167

36,544
90,716
62,187
107,582
126,318

;

1919.
January
February
March.."
April
II May

'
!

21
53
36
62
73

Lumber.
[From reports of manufacturers' associations.]
[M feet.]
Southern pine.

Western pine.

Douglas fir.

Eastern white pine.

i No. Produc! of
! mills. tion.

No. ProducShip- : NO. Produc-, Shiprvf
01
ments. I of
tion. I ments.
tion.
:
mills.
mills.

1918.
May

;
I 194

425,962

495,689 43,47

145,773

128,596

132

380,100

405,900

July
August
September
October
November
December

! 201
202
190
202
! 194
! 204

412,002
391,648
346,069
321,214
312,126
310,068

453,786
437,776
350,628
353,266
353,810
322,831

42,45
144,47
45,45
42,47
38,46
27,46

147,533 112,915
151,156 109,402
130,029
80,859
121,850
79,701
90,078 ! 74,103
63,315 ] 63,823

123
130
106
115
121
127

269,100
292,200
316,000
356,487
261,189
222,389

266,300
26
275,000
26
248,000
26
324,080 27,21
240,986
16
221,720
11

86,658
95,942
72,937
32,787
23,529
799

1919.
January
February
March
April
May

:

200 330,137
! 195 ] 328,069
198 378,752
: 203 397,005
; 205 414,899

325,241
309,494
361,125
397,677
460,238

J21,49
24,48
27,48
43,49
48

40,354
46,037
71,426
124,341
140,037

122
122
120
114
111

225,688
228,031
254,650
264,623
345,984

227,129
238,035
255,544
266,308

7,565
6,802
7,118
11,431
24,548




I
I
I
I
I

68,910
71,103
81,328
97,679
127,730

No. Producof
mills. tion.

24

North Carolina pine.

Shipments.

No. Producof
mills. tion.

75,903 ! 63,506

25,222

28,458

59,412
51,327
38,711
26,152
23,828
14,176

31,517
24,118
31,908
27,912
32,596
26,728

34,815
34,377
34,963
36,478
36,012
21,570

15,172
17,081
17,525
14,020
17,136

28,629
25,806
32,110
22,369
14,375

23,896
18,034
22,672
21,877
17,393

Shipments.

1, 1919,

675

FEDERAL RESERVE BULLETIN.
Lumber—Continued.
RECEIPTS AND SHIPMENTS OF LUMBER AT CHICAGO.
[Chicago Board of Trade.]
[Monthly average 1911-1913=100.]
Receipts.

Relative.

M. feet.
1918.

Shipment:^.
M. feet,

Relaiive.

252,265

119 j

121,667

159

243,598
208,963
171,515
130,503
142,230

May...
July
August
September
()c lobor
"November

Shipments.

Receipts.

115
99
81
62
67

98, Wo
78,707
68,133
70,590
72,723

M. feet.
1918.

128
103
89
92

December

!I
'! January
I February
' March
95 :: April
•; Mav

60,831 |

134,604
97,511
124,040
144,253
162,365

63
49
59
68
77

79

47,922
45,585
46,902
59,055
66,001

163,908

1919.

Relative.

5°??" I M. feet.
tive. !

62
64
61
77
86

Coal and coke.
[Bitaminous coal and coke, U. 3. Geological Survey; Anthracite coal, Anthracite Bureau of Information.]
[Monthly average 1911-1913=100.]

Bituminous coal, es- !| A n Ih r & c i t e c o a 1, •
timated monthly
shipments over 0 j —
production.
roads.
j

Coke, estimated monthly production.
Total.

By-product.

Beehive.

iv e. sn ).rl; tons, K eiauve. Snort tons. Koiauve.
... ... .......
May

1918.

Dfcembor
J:-i fs^nry

1919.

Februarv..
March./...
Voril
Miiv

137

55,587,312 :
55,732,092 i
51,757,334 !
52,385,813
44,386,987 '.
40)634,525 i

August
September.
October

50,927,195 |

122 • 2,757,719 [

105
105

2,

243

4, 896,923

140

150 i 7, OS J, 775 !
150 ; 7,180,923 |
140 6,234,395 i
143 : 6,286,306 I
120 : 5,276,659 '
110 5,736,260

126
128
111
1J2
94
102

2,813,910
2,657,022:
2.570,238 |
2',Gil,885 j
2,339,197 :
2)255,296

108
102
98
100
89
86

2 300,673 ;
2 387)675
2, 410,798 ;
2 563.IS3 1
2 523)746 j
2 562,018

261
271
274
291
287
291

• 5,114,583
5, 044,747
4, 981,036
5, 175,068
4. 862,943
4) 817,344

146
144
143
148
139
138

112
91
91
87
101

41,473,000 i
I 31,497,000 i
33,719,000 !
32,164,000 i
37,547,000 :

6,887,256

105

2,401,567 ! i
1,822,894
1,768,449 •
1', 316,960 •
i)135,840

92 i]
75 il- 6.'
79,482 .
08 J '

257

12,772,392 \

122

5,934,241
3,87i,932 :
3.938,908
o, 224,715
5,711,915

70
98
101

139,204 .

50 !

43 I.

Movement of crude petroleum in United Slate.
[U. S. Geological Survey.]
[Barrels of 42 gallons each,]
Stocks at
end of
month.

Marketed.

!

Barrels.

May

i

29,672,000

July
An trust
September
October

!

30,361,000
29,211,000
28,674,000
30,592,000

Barrels. K

Barrels.
1918.

1918.




Relative.!

!

Stocks at
end of
month.

Marketed.

155 . 143,631,000 ; November.
December..
158 ! 141,475,000
1919.
152 : 139,472.000
150 ' 135,680)000 January
160 , 134,838.000 February
March
April
May

!

!
I

Relative, i

Barrels.

28,347,000
28,071,000

148
146 j

131,295,000
128,311,000

29,869,000
26,51 i, 000
30,412,000
29,310,000
29,339,000

156 j
138 !
159
153
153

129,558,000
128,910,000
131)110,000
132,694,000
132,165,000

676

FEDERAL RESERVE BULLETIN.

J U L Y J., .19.19.

Total output of oil refineries in United States.
[Bureau of Mines.]
! Crude oil run I Gasoline
| (barrels).
(gallons).
1918.
April
July
August
September
October
November
December

i
"
!
!

Kerosene
! (gallons).

Gas and fuel
(gallons).

Lubricating
(gallons).
71,022,204

658,439,682
671,113,871
653,085,050
661,780,441
604,403,494
587,873,987

79,303,107
72,892,879
70,593,079
72,244,633
72,178,602
64,987,842

26,967,332
25,232,876
27,866,775

303, 710,556 i 158,501,260
283,518,194 I 164,181,787
311, 306,755 ! 170,290,930

589,630,056
553,853,753
574,774,156

68,304,613
62,503,072
67,063,995

509,197,134 i 393,527,476

471,644,479

144,383,212

349,928,604
285,446,538
269,772,723
250,328,369
270,072,011
297,326,983

432,807,129
424,281,481
436,628,907
419,409,944
397,804,012
380,117,829

519,012,839
569,016,413
583,407,769
596,116,351
583,777,918
659,001,357

136,460,207
137,496,986
147,425,556
135,196,542
132,923,478
138,853,574

15,380,185
14,820,601
15,100,361

'

578,255,341

156,828,826
149,678,850
164,963,798
164,928,640
169,278,105
161,742,713

14,026,525
13,946,595
14,462,100
15,438,576
15,222,401
15,719,771

1919.

January
February
March..".

!
I
!
;
'
i
I
i

293,396,162',153,703,682
332, 022,095
330, 335,046
314,595,959
314, 251,318
312, 968,640
291, 744,465

12,600,062

'

26,201,544
29,170; 718
28,534,275
28,390,431
29,237,767
27,411,636
26,958,157

383,212,692
458,449,187
540,862,429

332,393,181
303,062,436
294,677,623

646,411,414
692,816,000
749,067,806

158.370,431
152;297,163
165,495,254

!
!
i
i
!
I

Stocks at the close of month.

i

1918.

Apr. 30.
July 31..
Sept. 30.
Oct. 3 1 . .
Nov. 30.
Dec. 31..

1919.
Jan. 31..
Feb. 28.
Mar. 31.

Iron and steel.
[Great Lakes iron ore movements, Marine Review; pig iron production, Iron Age; steel ingot production, American Iron and Steel Institute.]
[Monthly average, 1911-1913=100; iron ore, monthly average, May-Nov., 1911-1913=100.]
Iron ore shipments
from
the
upper
Lakes.
Gross tons. Relative.
May
July
August
September.
October
November..
December..
January...
February..
March
April
May

Pig iron production.

Gross tons.

1918.

8,792,231
10, (559,203
9,725.331
8,995^014
8,541.593
4,333j828
C, 836

Steel ingot production.

Relative.

Unfilled orders U. S.
Steel Corporation at
close of month.

Gross tons. Relative.

Gross tons. Relative.

3..!4(>.412
170
161
148
141
72

119

3,420.988
3j 389^585
3,418.270
3,486'. 941
3,354.'074
3,433)617

148
146
148
151
145
148

3,2S7,233
3,113,635
3,083,680
3,197,658
3,352,190
3,000,700
2,992,306

130
129
134
140
128
125

8,337,623
8,883,801
8,759,042
8,297,905
8,353,293
8,124,663
7,379,152

169
1G6
357
158
154
140

3,302,260
2,940:168
3,090.243
2,478!218
2; 108,056

143
136
133
107
91

3,082,427
2,688,011
2,662,265
2,239,711.
1,929,024

130
120
110
93
80

6,684,208
6,010,787
5,430,572
4,800,685 !
4,282,310

127
114
103
91
81

158

1919.

1,412,239
6.615,341 '

109

Im/ports of pig tin.
[Department of Commerce.]
[Monthly average, 1911-1913=100.]
Pounds,

i Relative.!!

Pounds.

19.18.

May

'

10,796,218

July
August
September
October

!

15,567,667
16,317,437
10,630,66C
9,885.984




:

|
I

1 1 9 Ij November.
December..

191.8.

10,734,179 !

171 !;

180 1
117 j !
109 li

January...
February.
March.
April
Mav

I Relative.
118
65

1.919.

1,461,444
1,271,977
i. 284,970
'504,903
449,270

74
91

677

FEDERAL RESERVE BULLETIN.

JULY 1, 1919.

Textiles.
[Silk, Department of Commerce: cotton, Bureau of the Census: wool, Bureau of Markets; idle machinery, Jan.-Sept., 1918, inclusive, National Association of Wool Manufacturers.]
[Cotton, monthly average crop years 1912-1914=100; silk, monthly average 1911-1913=100.1
Percentage of idle woolen machinery on first of month
to total reported.

Cotton consumption.

Bales.

May.

1918.

of raw silk.

Cotton
spindles
active
during
month.

Wool consumption
(pounds).

Wider i Under Sets of Combs. I
i than 50- j 50-inch cards.
! Woolen. Worsted
I inch reed j reed
j space. | space.

1

Relative.

575,862

Spinning spindles.

Looms.

128

33,691,576

60,124.546

7.9

8.3

5.3

July
August
September
October
November
December

541,792
j 534.914
I 490,779
!
440,833
i 457,376
!
472,941

120
119
109 (
98 !
102 !
105; ;

33,674,896
33,646.811
33,524;275 i
32,760,623: I
33,121,507
33,652,612

50,951,651
51,516,457
47,648,413
48,692,509
38.282,723
32,355,081

10.4
12.2
13.8
18.3 I
21-1
22.5 I

10.2
14.3
15.1
24.3
2G.8
24.9

5.9
6.0
7.0
9.3
11.1
13.8

10.5
10.2 !
13.2 '
12.5 I
23.8 I
17.8 |

6.5
6.6
8.3
8.8
11.9
16.1

1919.
January
February
March
April
May
June

!
!
i
;
'
;

124
103
96
106
109

33,856,472 ,
33,282.593 I
32,642:376 |
33,213,026
33,556,011

32,573,970
23,186,818
29.320,063
39,159,945
45,084,834

40.3
52.3
58.1
48.4
36.6
29.6

32.6
41.5
42.4
38.9
32.9
26.6

32.2
38.7
39.1
26.5
17.1
15.4

30.7
39.8 I
47.8
34.2 !
22.5 j
12.8 I

36.5
41.1
41.8
28.4
16.8
15.2

556,721
433,516
433,720
475,753
487,998

II

I
i
;
I
|

5.4
1,997,314
3.813.595
3,973;754
2,814,270
2,336,345
2,680,863
37.5
48.6
52.7
36.1
25.8
21.1

1,461,827
1,742,812
1,784,412
2. 988,838
4.878.640

NOTE.—Figures of idle wool machinery for Nov. 1 and Dec. 1 are not entirely comparable with previous figures, due to fact that later figures are
for number of machines running on single shift, while earlier figures count as two a machine running double time. The effect is, however, small.

Production of wood pulp and paper.
[Federal Trade Commission.]
[Net tons.]
Wood
pulp.

May..

1918.

July
*
Augustu
September
October
November
December

News
print.

Book.

I 111,242 ; 78,455
j
O . ' i O Q"7"7
I 2(52,377
! 2i6,741
i 237,624
| 270,849
; 273,973

:

103,348
1 1 O OOC
113,826
99,528
88;155
97,693
107,129

! 69,458
! Til
AOC\
76,439
66,581
.60,7'
.
I 67,262
i 64:501

Paper
board.

Wood ! News
pulp.
print.

Wrap- j Fine.
ping. I

174,894 j 61,763 \ 33,512
70,526
71.249
61.390
5f>; 903
61,6S1
51,947

177,931
192,810
168.384
143!373
152.321
134;103

34,609
36,910
37,833
28,533
33,429
29.975

1919.
January
Februarv
March...*
April
May

Book.

Paper
board.

v> r a p - . Fine.
ping, i

i
I
i 283,270 j 116,154
i 238,228 i !103,248
" 278,675 - 114,746
I 254,984 ! 116,278
: 294,067 ! 105,819

70,443
62,616
63,699
67,628
76,821

140,859
125,208
136,175
138,802
151,651

50,490 1
45,480 !
48,069 i
48,158 i
56,579 !
i

27 ,675
24 ,600
23 ,514
22 ,470
25 , 010

1

Tax-paid manufactured tobacco products in the United States (excluding Porto Rico and Philippine Islands.)
[Commissioner of Internal Revenue.]
Cigars.
Large.

April

1918.

July
August
September
October
November... i




Small.

Cigarettes.

Cigarettes.

Small.

Small.

Number. ! Number. 1 Number.
610,372,314 I 79,794,719 ; 3,393,675,490
634,609,533 ! 79,237,849 3,796,878,822
1624,491.239 j 60,880,910 ! 3.442,446,234
!58o, 400', 449 ; 60,556.000 3'.403,205,736
!594,764) 527 63, 111'. 160 3;027.300,975
!
537,794.904 63,177'. 200 2,986;775,643

I Pounds.
j 35,229,106
1919,
I 36,607,578
j 40,76-1,853 J a n u a r y . .
37.893,818 F e b r u a r y .
39; 440,893 ! March..!!.
j
32,618,009 j; April

Number.
Number.
527,586,098 j 59,139,250

; _,.
j Chewing
! and smok\i n g tobaCQO-

Number.
j
2,788,379,210 |

518,706,482 72,458,974 3,079,212,253
1476,329,947 60,138,630 3,126,274.602
'549,098,351 j 84,493,873 3,845,079', 275
1510,357,494 ! 73,314,273 2,650,182,742

Pounds
25,276,695
29,308,616
27,472,269
29,227,678
29,883,710

678

FEDERAL RESERVE BULLETIN.

JULY 1, 1919.

Output of locomotives and cars.
[Locomotives, United States Railroad Administration; cars, Railway Car Manufacturers' Association.]
Output of ears.

Locomotives.

Domestic!
shipped.:
19.18.

Number..

July
August
September.,
October
November..

214
267
295
224

!

p<S.

i

1

! Foreign. | Totai.

tic.

Number, i Number, i Number, j Number.
1918.
5,048 |
3,841 i
8,889 J December..

May.
i
•
!
!
i

3,312
2,437
2,666
4,555

77 !
213 {
313 !
252 |

!
:
j
:
,

6,743-1

Output of cars.

Locomotives.

7,722
7,284
6.230
7;236
9,093

4.410
4; 847
3,564
2,681
2,330

,

:

"|
!
!
:
!

domestic!

| Foreign.

i Number. Number.. Number.
7,876
281
177 '

1919.
January
February...
March..:....
April
May

282 !
135 !
258 !
197 I
197 i

Total.

Number.
3,402

Number.
11,278

3,635
4,657
5,795
7,373
8,533

11,807
11,280
11,773
15,150
13,106

8,172
6,623
5)978
7,777
4,573

84 I
164 i
128 j
36 !
31 j

Vessels built in United States, including those for foreign nations, and officially numbered by the Bureau of Navigation.
[Monthly average 1911-1913=100.]
Gross
Number. : tonnage. Relative.:
1918
May

185 -: 194,464 ;

July
August
September
October
1
November
rccember

193 !
177 i
170 !
202 ;
171
153 .

229,931 i
295,349 !
308,470 ::
357,532
357,660 ;
283,359

Gross
Number. tonnage. Relative.
1919.

January. ..
February
March
April
May

805
951
1,222
1,276
1,479
1,480
1,173

132
135
186
201
250

264,346
271,430
298,005
375,6O0
395,408

1,094
1,203
1,233
1,554
1,636

:i

Tonnage of vessels cleared in the foreign trade.
[Department of Commerce.]
[Monthly average 1911-1913=100.]
Percentage

Net tonnage.
I
American.] Foreign. I

Total.

i
i
..!
..I
..!
..I
..i
..

r

iliela- Ameri-I 11 ™-!can to !
'•'•
i
total. I

1918.
May
July
August
September
October
November
December

Not tonnage.

:
4,338,396 |
1,811,603 : 2,526,793
2,093,310 : 2.911,171 i 5,034.481 !
2,332.577 '. 2',808)466 5,141)043 i
2,009". 194 : 2.290,872 4,300,066
' """ Mn
1,875:947 - 2.163,383 4,039,330 i
.
1,770)935 : 1)991,725 3,782,660 i
1'. 141,319 '•• 2,053,517 3,194,836 i

112 \
m i
132 |
111
ioi!
97
82

!

j

I American. Foreign, j

j.

I

1919.
-11.8 ; 165 :: January..
February.
41. 6 ; 161 March
•lf>. 4 , 179 April
185 May
S! 4; 184
186
47.1
141
35.7

i

.!
-I
.!
J
.!

1,166,391 : l,80::>, 123
1,262,487 I V. 671,070
1,161.416 l)737:171
1,74V.753 2,058'. 220
2,424)837 2.469'. 194

Total.

•
! 3,062,514
i 2.933,557
j 2)898,587
! 3,802,973
I 4,894,031

Percentage
Relaof
Rela- Ameri- tive.
tive. can to
total.

78
75
75
98
126

38.1
43.0
40.1
45.9
49.5

151
170
158
181
196

Net ton-miles, revenue and nonrevenue.
[United Crates Railroad Administration.]
1918:
May

36,720,788,000

July
August;
September
October
' November
3 .• ecembcr

38,761,291,000
38', 4.69,847,000
3Si 592) 137) 000
39; 548,562.000 ji!
35,533,026)000 !,
33.659,507,000 ji




January
FebmaY y
March..:.
April
Mav

1919.
,

I
I
I
j

30,383,169.000
25,681,943', 000
28,952,925,000
28,629,739,000
32,440,708,000

679

FEDERAL RESERVE BULLETIN.

JULY 1, 1919.

Commerce of canals at Saull Ste. Marie.
[Monthly average May-Nov., 1911-1913=100.]
EASTBOUNJX
Grain, other than
wheat.
Bushels.
1918.

April.
May..

8.187,450 i

1919.

Bushels.

92

• 4,176,041 i
9;370,374 I 105

Flour.

Wheat.
Relative.

2,632.572

14

Br.rrels.

858,070

Relative.

Short tons.

8,792,162

74

i

16,729,000
29,096,116

151

910,524

Total.

Iron ore.

78 !

tive. j Short tons. I tive.

148

9,200,843 •

131

112

1.756,266 !
71895,542 \

313

1,139,326
6,622,227

WESTBOUND.
Hard coal.
Short tons.

May.
April.
May..




1918.
1919.

Soft coal.

Relative.

Short tons.

166,155

54 !
:
80 I

415,824
2,239,738

Relative.

1,877,973

142,864
248,263

Total freight.

Total.
Short tons.

Rela-I Short tons.
tive.!

2,203,202

117

89 i

11,404,045

616,897
2,670,784

.....
107 I

2,373,163
10.566.326

Relative.

120

680

FEDERAL RESERVE BULLETIN,

JULY 1, 1919.

DISCOUNT AND OPEN-MARKET OPERATIONS OF THE FEDERAL RESERVE BANKS.
Discount operations during the month of
On the last Friday of the month the banks
May totaled "$7,385,835,256, compared with held a total of $1,989,392,000 of discounted
$5,901,401,640 fot April of the present year and paper, compared with $1,950,412,000 about the
$6,215,083,531, the previous record total for end of April and $897,357,000 held on the corDecember, 1918. Of the total discounts for responding date in 1918. The total for the
the month under review the share of war paper most recent date comprises $112,865,000 of war
was about 97 per cent, compared with 95.2 per paper held under discount for other Federal
cent the month before and 92.7 per cent in Reserve Banks by the Federal Reserve Banks at
December of the past year. While all the Cleveland, Chicago, St. Louis, and Minneapolis.
Federal Reserve Banks, except Boston and Of the total discounts held, 90.6 per cent was
San Francisco, report larger discount figures war paper, compared with 90.3 per cent about
than the month before, over 90 per cent of the the end of April and 62.8 per cent on the last
total increase is shown for the New York bank, Friday m May, 1918, considerably larger perwhose share of the total discounts for the month centages obtaining for the three eastern and
of May is about 55 per cent, or 10 per cent the Cleveland banks.
higher than the month before.
Discounted trade acceptances held about the
Discounts of member banks7 bills secured end of the month totaled $7,321,000, compared
by eligible paper declined from $25,056,867 with $8,561,000 held about the close of April
in April to $17,737,787 for the month under and $17,723,000 held on the corresponding
review. Trade acceptances discounted during date m 1918. By far the larger portion of the
the month total $7,121,222, compared with present holdings is composed of domestic trade
$8,071,368 for April, 1919, and $13,165,738 for acceptances. Holdings of agricultural paper
May, 1918. By far the larger portion of the of all maturities totaled $28,619,000, as against
trade acceptances discounted during May of $19,474,000 held on the corresponding date in
the present year cover transactions in domestic 1918, while total holdings of live-stock paper
trade, foreign trade acceptances to an amount were $30,372,000, compared with $47,260,000
of $1,692,142 being reported only by the New about the end of May of the past year. Nearly
York bank. In addition, the banks report the 60 per cent of the agricultural paper is held by
discount during the month of $1,051,759 of the Dallas and San Francisco banks, while
bankers7 acceptances and $190,053,097 of ordi- about 78 per cent of the total live-stock paper
is held by the Kansas City and Dallas banks.
nary commercial and agricultural paper.
During the month under review the number
About 98 per cent of the total discounts for
the month was 15-day paper, i. e., biUs matur- of member banks increased from. 8,786 to 8,817,
ing within 15 days from date of discount or while the number of discounting members went
rediscount with the Federal Reserve Banks up from 3,875 in April to 4,035 in May, a new
Six-month bills (agricultural and live-stock record total since the establishment of the
paper) totaled $16,460,207, compared with system. In the following exhibit are shown
$12,639,627 the month before, about 60 per- the number of member banks in each Federal
cent of the larger total being shown for the Reserve district at the close of April and May,
also the number of member banks in each disKansas City and Dallas banks.
As the result of the large increase in 15-day trict accommodated during these two months:
discounts the calculated average maturity of
member Number of member
all the paper discounted during the month— Federal Reserve district. Numberinof district. banks accommobanks
dated.
9.13 days—shows a decided decline from the
April 30. May 31.
Apnl.
May.
average for the preceding months, the decline
425
427
230
245
Boston
being most pronounced in the case of the New York
727
730
426
423
665
Boston and New York banks.
666
346
391
Philadelphia..
821
825
195
207
About 91 per cent of all the bills were dis- Cleveland
570
571
281
312
Richmond
425
426
223
262
counted at the 4 per cent rate and slightly less Atlanta
1,359
651
560
1,362
Chicago
than 8 per cent at the 4 | per cent rate. The St. Louis
517
190
191
521
872
180
235
879
Minneapolis
average rate of discount for May works out at Kansas City....
400
418
1,002
1,003
465
508
741
741
4.16 per cent, compared with 4.18 per cent for Dallas
283
662
666
April of the present year and 4.35 per cent for San Francisco..
Total..
8,786
8,817
3,875
4,035
May of the past year.




681

FEDERAL RESERVE BULLETIN,

JULY 1,1919.

Bills bought in open market during May
largely by the New York bank for its own
account and for account of other Federal
Reserve Banks totaled $147,650,192, compared with $140,891,638 bought the month
before and $115,913,940 bought during May,
1918. Of the May,
1919, purchases
$144,595,240 were bankers7 acceptances, nearly
three-fourths of which were based upon
foreign trade transactions. Purchases of trade
acceptances are reported by the New York,
Cleveland, Chicago, and San Francisco banks,
the total for the month, $1,896,462, being considerably smaller than for the earlier months of
the year. The average maturity of all bills
purchased during the month is given as 45.80
days, compared with about 42 days for April,
while the average rate of discount charged,

4.24 per cent, is identical with the average
shown for the immediately preceding month.
On the last of the month the banks' holdings
of purchased acceptances totaled $185,556,000,
compared with 1180,319,000 held at the close
of April and $257,306,000 held on the last of
May, 1918. Of the most recent total all but
$1,993,000 were bankers7 acceptances, and of
these about 75 per cent, or $136,715,000, were
member bank acceptances, while the remainder
was made up of bills accepted by nonmember
institutions, private banks, foreign banks, and
their agencies. Of the $1,993,000 of purchased
trade acceptances held at the end of May, all
but $136,000 were foreign trade acceptances,
largely drawn by exporters in the Far East
and reported by the New York and San
Francisco banks.

Total investment operations of each Federal Reserve Bank during the months of May, 1919 and 1918.
Bills discounted for
members.
*443 930 167
4,007.069.831
945' 479' 028
239 824 981
368^133.803
165 527 564
412 850 676
205 165 544
81 152'465
147,379,968
129 874,724
179,446,505

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

7 3S5 835 256
2.993,019.34o
29!736,118'849
7,551,207,335

Total Mav 1919
Total Mav 1918
Total, 5 months ending May 31,1919
Total, 5 months ending Mav 31,1918

United States bonds.
Bills bought in
open market.

818 501 331
60,721,633 '
534 512 1 .
15 472 166 !
2,791,242 !
2 788 678 !
22,025.711 1 -5 546 649
4,596,780
9,595
830.000
13,831.895
147 650 192
115,913,940
801,184.338
642;320;436

.

.

.

S16,250

7,600
12,050

Dallas
San Francisco
Total Mav 1Q19
Total May 1918
Total' 5 months ending May 3*1,1919
Total, 5 months ending May 31,1918




3£ per cent.

35 900
35,900

4 per cent.

4J per cent.

•

£16. 500
1.000

$25, R50

1,562,185

4,872, 000

1, 000

United States
certificates of
indebtedness.

Total United
States
securities.

.§75,3ii,500
1,500.000
1,259,500
500,000
735,000
2.030,000
2,000,000
878,000
653,500

$16,250
75.311' 500
I)500,000
1,259,500
500,000
742,600
2,030,000
2,000,000
890,050
653.500

1,670,000

United States
Victory notes,
•1;J per cent.
.Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago .
St Louis
Minneapolis

Municipal
warrants.

1,670,000

86,537,500
184,425,500
1,413,847,000
2,624,717,660

86,573,400
200,257,325
1,415.210,625
2,682,696,773

82,510,600
1,000,000
39,811,738

$13,295,375
326,725
13,295,375

Total investment operations.
May, 1919.
8462,447,748
4,203,102.964
947,5131540
256,556,647
371,425.045
169,058,842
436.906,387
212,712,193
86,639,295
148,043.063
130.704; 724
194;948,400
7,620,058,848

May, 1918.
.
i
:

,

56-1,062,669
2,435.168,861
80,508,191
77.234.301
133,806,799
48,223,999
172,133,229
61,347,269
32.237.642
95,988,964
39.427.035
65,883,018
3,309,207,111

31.952.514.812
10,877,786,729

682

FEDERAL RESERVE BULLETIN.

JUL? 1,

1919.

Average amount of earning assets held by each Federal Reserve Bank during May. 1919, earnings from each class of earning
assets, and annual rates of earnings on basis of May, 1919, returns.
Average balances for the month of the several classes of earning assets.
Federal Reserve Bank.

Discounted
bills.

Purchased
bills.

United States
securities.

Municipal
warrants.

Total.

|

Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco..
Total, May, 1919.
Total, May, 1918.

8152,233,040
753,166,858
192,374,942
132,273,443
93,118,887
84,215,540
220,888,776
68,153,931
48,169,000
87,150,314
51,370,232
90,811,118

$14,638,054
43,325,498
907,967
21,525,381
7,313,774
5,628,807
10,814,000
1,886,110
1,271,064
52,218,257

§17,455,050
73,143,200
20,312,497
17,289,093
6,832,909
9,679,358 |
25,122,794
15,532,755
9,234,000
15,350,701 |
8,866,000 !
9,261,984 |

1,973,926,081
902,101,974

189,767,777 |
278,464,206 I

228,080,340 j .
84,645,930 i

Earnings from—
Federal Reserve Bank.

Discounted
bills.

United
States
securities.

Purchased
bills.

j

Boston.
New York
Phdladel phia
Cleveland
Richmond
Atlanta.
Chicago
St. Louis
Minneapolis
Kansas CH v
Dallas
."
San Francisco

852,029
153,055
3,214
76,840
28,409
21,790
94,171
14,181
40,068
7,550
5,163
188,212

Total, May, 1919
Total, May, 1918

' 6,958,789 !
''• 3,246,542

684,682 •
996,804:

469,589
213,089

I

;

3535,420

2,391,774,199
1,265,747,520

Calculated annual rates of earnings from—

Municipal
warrants.

Total.

j Disi counted
j bills.

,

]
8,113,060 .
$1,877 ! 4,458,312 I

United MuniciPurpal
States
chased
bills. securities. warrants.

Total.

cent. Per cent. Per
4.14
4. IS
4.01
4.10
4.06
4.16
4.21
4.20
4-27
4.57
4.16
4.56
4.19
4.22
4.14
4.23 !
4.20
4.36 '
4.56
4.71
4.64
4.78
4.47
4.24

cent. Per cent. Per cent.
2.03
3.95
2.96
3.93
2.12
3.87
2.14
4. GO
2.02
4.15
2.03
3.97
2.11
4.00
2.17
3.79
2.78
4.04
2.19
4.22
2.15
4.28
2.43
4.27

4.15
4.38

Per
S618,002 !
2,904,847 !
703; 576 !
581,714 i
377,929 !
335,726 j
925,268 .
282,400 !
233,798 '
373,875 j
223,888 !
552,037 !

330,135
• 183,698
36,613
31,372
11,709
16,698
45,096
28,615
21,768
28,594
16,200
19,091

8535,838 I
2,568,094 i
i
663,749 i
..i
4.73,502 i
,
337.811 :
297J238 '
i
786,001 :
239,(504 i
:
171.962 i
•• 337j 731 :
I; 202,525 !
.'
344,734 !
!

$184,326,144
869,635,556
213,595,406171,087,917
107,265,570
99,523,705
272,300,667
87,636,454
68,217,000
104,387,125
61,507,296
152,291,359

2.42
3.06

4.25
4.36

4.27

3.99
4.29

Bills discounted during the month of May, 1919, distributed by classes, also average rates and maturities of bills discounted
by each Federal Reserve Bank.

|
!
Federal Reserve !
Banks.
I
I
i

Boston
New York
Philadelphia
Cle v eland
Rich mond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
".
San Francisco
Total...




i
j
!

!

i
i
!
!
j
j
:
I

Customers'
paper
secured by
Government
war
obligations.

Member banks' collateral
notes.
Secured by
Government
war
obligations.

Otherwise
secured.

822,943,483
44,334,581
18,830,235
4,992,978
5,432,520
2,176,4-14
2,873,184
1,309,317
211,079
1,112,213
377,088
2,059,524

8414,642,050
§1,459,700
3,915,329,542
901,388,419
45,000
225,789,200
150,000
3o3,649,227
941,000
151,400,675
742,039
393,232,013
150,750
192,378,989
185,000
70)593,800
0,757,000
126,139,850 - 6,290,902
119,943,750
501,086
168,701,200
506,250

106,682.670

7,063,188,7i5

17,737,787
1

Trade
acceptances.

Bankers'
acceptances.

8106,740 i 8179,754
i 3.820,295 I 687,278
' 157, S29 !
391,912 !
850,077 I
520,106 I
136,263 j
367,761
367761
18-1.727 ;
13,255 i
501,236
108,217 !
135,441 !
7,121,222

All other
discounts,

84,598,440
72,S92,135
25.057,545
Si 500,891
7.260,979
10', 682.210
16,452' 400
10.739,720
3i517,331
13,335,707
8,941.583
804j;090

1,051,759 ; 190,053,097

Includes SI ,092,142 in the foreign trade.

Total.

Average
Average
rate
maturity (365-day
in days. basis) per
cent.-

$-143,930,167
4,067,069,831
945,479,028
239,824,981
368,133,803
105,527,564
412,850,676
205,165,5-14
81,152,465
147,379,968
129,874,721
179,446,505

9.15
6.58
7.27
14.42
10.88
16.73
16.71
11.00
17.95
21.76
20.43
16.96

4.14
4.03
4.07
4.13
4.25
4.19
4.21
4.15
4.41
4.66
4.46
4.50

7,385,835,256

9.13

4.10

888

FEDERAL RESERVE BULLETIN.

JULY 1,1919.

Bankers' and trade acceptances in the foreign and^domestic trade and finance bills purchased during the month of May, 19:19,
also average rates and maturities of total bills purchased by each Federal Reserve Bank.
Bankers' acceptances.
Federal Reserve Bank.

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

Total....

In the
foreign
trade.

In the
domestic
trade.
$4,556,457
14,721,195
136,745
5,477,178
1,515,242
2,464,678
3,021,803
1,952,771
1,202,019
9,595
90,000
2,590,200

513,944,874
44,181,470
397,767
9,624,819
1,276,000
324,000
18,816,939
3.593,878
Z, 111,271

37,737,883

100,857,357

740,000
10,846,333

Trade acceptances.

Total.

818,501,331 :
58,902,671 •
534,512
15,101,997
2,791,242
2,788,678 "
•
21,838,742 :
5,546,649
4,313,290 :
9,595
830,000
13,438,533

144,595,240 :

Finance
bills.

In the . In the
domestic ! foreign
trade., i trade.

Total.

.j 81,268,962 . 61,268,962
275,169

8275,169 j .
46,969

!

305,362 j

46,969

305,;

Average
Average
rate
Total pur- maturity (365-day
chased bills. in days" : basis),"
I per cent.

275,109; 1,621,293- 1,896,462 j 1,158,490! 147,650,192!

"T

24.55
38.47
73.24
47.20
62.26
60.60
70.35
35.05
57.04
36.77
49.16
58.74

4.17
4.19
4.23
4.20
4.56
4.56
4.28
4.39
4, 20
5.07
4.65
4.23

45.80

$18,501,331 !
8550,000 | 60,721,633 !
534,512 !
'"95,000 \ 15,472,166 '
2,791,242 j
2,788,678 |
140,000
22,025,711 j
5,546,649 \
283,490
4,596,780 S
9,595 !
830.000 !
90,000 j 13,831,895 |

4.24

Discounted bills, including member banks1 collateral notes, held by each Federal .Reserve Bank on the last Friday in May, 1919,
distributed by classes.
[In thousands of dollars, i. e., 000 omitted.]

Federal Reserve Bank. •

Boston.
New York
Philadelphia.
Cleveland
Richmond
Atlanta.
Chicago
St. Louis
Minneapolis
Kansas City.
Dallas
San Francisco
Total
Per cent
Total May 1918 .
prT "OT)t.




Agricultural
paper.

M e m b e r ba nks' collatCustomers'
eral 1lotes.
paper seLive stock cured b y 1
paper.
Govern- ; Secured b v
mo.nl; war I Govern-' Otherwise
secured.
obligations.; m o n t war
. obligations.

...

717
35
SO
866
672
90
85
757
4,981
805
540

30,372

187, (.'S3 j 1,615.210

9, (528

1 5
AJ 9()()
5.3

9.4 '
112 035 i
12.5 .

255
? 370
1 (>'. 947
0.705
3,466

28,619
1.4
19 474
2.1

109
520

78.648
57.612
14| 451
5,982
13,359
4J548
5.825
1,545
184
1,632
940
2,957

!

67,543
645,640
169,125
125.422
68.235
67,050
222,315
60,078
45'000
51 i 396
24', 947
67,858

223
78
43
3,143
2,491
2,344
360
466
2,483
11,989
4,999

.
!
;
:
;
!
;
!
:
i
;

81 2
^50 768
50.3

.

1)

24 048
2,7

Trado
acceptances.

246
2,112
.. 369
441
1,264
809
169
550
5
921

Bankers'
acceptances.

.435

1

4,198
24.050
12)5J 0
6,112
7,230
8,518
16,001
6,623
1 763
10; 974
7.428
• 4,028

7,321

1,122

109,435

.4
17 723
2.0

327
291
20

All other
discounts.

477
6

.1
W5 117
25.1

Total.

151 679
729,929
196,589
138,189
94.097
85; 209
246,744
69,973
50 545
89,340
52,81.4
S4,284
1,989,392
100
896 495
100

684

FEDERAL RESERVE

BULLETIN.

JULY 1, 1919.

Acceptances purchased and held by each Federal Reserve Bank on May 81, distributed by classes of accepting

institutions.

[ In thousands of dollars, i.e., 000 omitted.]
Bank acceptances.

Federal Reserve Bank.
| Member
j banks.

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

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

Totals:
M a y 31,1919
A p r . 30,1919
Mar. 31,1919
M a y 31,1918
M a y 28,1917

Nonmember
trust
companies.

Trade acceptances.
Foreign
banks,
branches,
and

1,904
4,127
172
1,622

100
3,870
32
1,360

239
141
191
25

131

350
158
!

6,314

6,207

"5," 084*

14,563
44,302
1,110
21,228
6,976
5,269
28,404
4,789
7,188
577
793
48,364

2,853 !
,
2,975
2,172 I
1,330 .
23.441 !

12,475
26,634
476
14,688
6,976
5,259
27,708
4,298
6,804
552
793
30,078

Private
banks.

18,729
12,321
15.561
5; 168
525

14,628
14,196
15,263
26,217
19.912

10,612
8,230
12,885
8,398
235

183,563
177,756
231,088
247,030
107,099

Nonmember
State
banks.

Total.

Domestic. Foreign.

Grand
total.
Total.

i
84
8,861
430
2,196

j

810 i
1,362 i

10

681

j
i 136,741 j
' 140,034 I
. - . . j 185,207
i 207,917
i 62,986 |

•

35

110
551
136

1,193

1,1

1,857
2,505
4,207
8,276

136
58
319

14,673
44,853
1,113
21,364
6,976
5,269
28,404
4,789
7,188577
793
49,557

110
551
3
136

1,993
2,563
4,526
8,276
2,727

i
'
I
;

185,556
180,319
235,614
257,306
109,826

Bills discounted by each Federal Reserve Bank during the three months ending May 81, 1919, distributed by rates of discount;
also average rates and maturities of all bills discounted by each bank during the three months.

_

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
D a l l a s . . . . .*
San Francisco

j — —
I Amount.

\ Discount.

Amount.

; $1,176,388,245 |
! 9,284,108.778 !
! 2,678; 826) 383 j
i
612,948,997 •
!
347,497,091!
!
422,3 83'. 296 j
i
993,415'. 107 !
!
505,610) 720 I
i
150,056,700 i
!
109,611,500 !
I
295; 139,724 I
1
i
I 16,635,816,541 j

".

Total

3686,044
7,139.876
2,091) 611
837,155
414,269
697,772
1,628,502
066,397
238,624
166,035
478,993
,
15,045,278

896.384,525
81)871,968
12,624,859
94,989,463
687,870,923
22,706,650
74,120.623
3,797) 223
2,522,234
236.743,433
26', 267,631
514)421,223
1,854,320,755

5-J per cent.

5 per cent.

Discount.

Amount.

Discount.

8879,518
704)471
121,082
222,539
757,617
57,871
184,032
31,647
4,789
413,657
54,210
865.119

8932,376
953,061
654,504
1,049,382
13,167,731
1,400,698
11,855,638
6,010,817
17,886,619
23,236,965
2,033,741

. 57,053
6,925
4,968
5,740
29,000
10,154
23,263
15,241
34,060
43,207
5,563

4,296,582

79,181,532

185,174

per cent.

Total.

D iscount.! Amount.

Discount.

Amount.

! Discount.

Amount.

Discount.

86,474,629
9,877,116
2,258,219
4,609,841
17,318,912
14,031,667
22,527,591
11,571,979
2,010,670
1,901,010 j
9,156.495 I
777)398 !
102,515,527

845,335
73,717
13,422
27,196
109,594
104,264
171,966
80,584
8,309
12,376
52,745
6,959
706,467

Amount.

Average
i Average rate (3651in
i daybasis),
*»
per cent.
Discount. I

280,580, 375
376,856: 995
694,508! 965
713.867! 217
066)713: 221
461.688; 020 !
105)599. 935 i
587.419, 548 I
175)092. 105 !
•416,43-1! 218 i
350,903: 081 i
531,137) 390 I

SI, 618,780
7,926,237
2,231,368
1,095,258
1,327,926
.897,185
2,083,085
803,439
341,996
1,201,981
890.101
1,080)874

Federal Reserve Banks.
Amount.

45 per cent.

4-J per cent.

4-J- per cent.

4 per cent.
Federal Reserve Banks.

1

Boston
N e w Y'oi'jc
Philadelphia
Cleveland
R 'el unor1 d
\tlanta
Chicago
St Louis .
Minneapolis
Kansas City
Dallas
San Francisco
Total




i

8100,600
-16.072
115)000
;>f>4
365. , 709

$830 .
1.2is :.
'285 i.

I"

8269,534
$2.628
17.446 '
"I.-1
27^ 124 '
....l....i
15.000 i
28
3,665,976 i
!
44 !
'.
•108,809 i
4.837 ;
i
2.160'. 608 !
23L599 !
i
15)233', 197
99,517
9.024.605 i 198,558 !
210)000 !
104.233
""'
' 15; 000 I
33 1 -1,167,437 •

§75,294 !
20, 000
9,526 !
455, 27-J
51.377 I
:
29. 678,113
335', 107 I
'485 •
'
9. 070, 8K5
11, 456, 332
10-4,530 !
j
53,496,549 I 487,163 j 9,324.139 | 201.247 j 20,146.027 1 576,319 '. 18,760,801,070 ; 21,498,230

11.11
7.66
7.42
13.57
10.63
18.55
16.46
14.66
16.53
23.18
20.79
16.60 I

4.15
4.03
4.07
4.13
4.28
4.21
4.18
4.15
4.31
4.72
4.45
4.48

10.15 I

4.16

685

FEDERAL RESERVE BULLETIN.

JULY 1,1919.

Acceptances purchased by each Federal Reserve Bank during the three months ending May 31. 1919, distributed by rates of
discount; also average rates and maturities of acceptances purchased by each bank during the three months.
4 per cent.
Amount.
Boston
Now York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
"Minneapolis
Kansas City
Dallas.
San Francisco

'

!

4r& per cent.

I Discount:.

Amount.

:
|

j

:
;
i
i

Total

j

$8,532,122
68,980,962
1,949.635 i
9,856) 854 i
'<
I
20,076,805 I
3,013,539!
1,(583,937 i
472.806.

$21,361
154,520
3,397:
25,420 I
;

1,258,521 I

:

Discount.

37,568 i
9,172
5,064 !
1,345

:

326,822 j 12,526,229 |

4§ per cent.

554

$2,022,719
18,699,056
468,493
6,751,551

$10,492
150,171
3,976
53,2-11

4,290

29,348,954
7,455,195
16,235,582
3,059,564

174,101
43,485
100,307
19,636

4,332,250
841,986
4,084,841
455,341

34,801
6,405
32,504
3,799

78,208

159,745,740 j

213,282 j

669,901 j

19,738,844
15,588,281

4g per cent.

Total




;

!
$50,818 i
'.
!
•
•
'
I
''
881,733

: 932,551 !

S271

i 147,138
[
,
!
'
I
;
:
j
I
j 295.000!
7,682 j 80)325 ;
7,953 |

591,035 i

44,611
340.060

4$ per cent.

4ft per cent.

$6,905
§435,971 I

31,092,394

83,651

331
3,514 j
539 :
21,506
17,950 j
!
737

962,008
638,445
16,934

9.697
3) 134
167

7,803,102

16. 111.

§75,000 !

$129

5 per cent.

$8,312

1,245 !.

;
I 704.569
3,408 !
548 j
!
712,911 |

100,168

§6,809
88
81,7(i3
70,150
466

525,000 !
2,293,000 i
79,000

69,462

S594 !
203 ;.

;

43,795
10,061,265
8,953,940

57,581 j 9,856,460

4£ per cent.

S50.000
18)572

5,568,640
43,224,877

116,406
938,8

Discount. Amount. ; Discount. Amount, i Discount.

Amount, j Discount. Amount. Discount.; Amount. Discount.'
!
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco.

j Discount.
!

$34,059
314,211
10,950
125,651

$73,294
70

4f per cent.
-V

$11,672,589 j $24,027 [ $1,304,696 !
, 34.486', 547
667,134
106.662
I ' 329) 689
3) 261
32,134 :
I 4,263,179 .
22,283
1,429,244
•.
20.000 !
50,000
2.099,697
13,413) 813 j 134,493
6,859.835
: 1,841.752 !
5,660
424', 665 !
3) 910
'.
!.
;.
26.451 |
83,489
' 3.603,478 !
70,055,712

Amount,

810,695,669
51,123,030
1,501,416
20,587,486

$.1.4,682,098 !
23,000 I

Amount, j Discount.! Amount, i Discount.: Amount.

Total

Discount.

;

259,628
I
j

41 per cent.

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

Amount.

1,781

115,825,181

4& per cent.

4 per cent.
&

75,000 I

129

2,200
13,770
247

23,148,562 j

175,559

Total.
Amount,

S57 i $48,968,235
! 175,577,484
!
4,281,367
i 43,292,529
!
10.061,265
!
9) 023,940
!
70,233,527
i 20,825,920
:
22,445,959
7,999
5,887,181
2,588,000
39,097,132

I Average
j Average
| rate (365
; maturity
! days),
i in daws.
; per cent.
i Discount.
$170,789
742,727
21,915
231,996
81,763
70,764
412,226
86,401
141,952
39,269
17,184
267,925

8,056 | 452.282,539 j 2,284,911

30.54
36.84
44.54
46.57
65.01
62. 76
50. 63
35.80
55.02
56.01
52.56
58- 40

4.17
4.19
4.19
4.20
4.56
4.56
4. 23
4.23
4. 20
4.35
4.61
4.22

43.50

4.2-1

686

FEDERAL RESERVE BULLETIN.

JULY 1,

1910.

OPERATIONS OF THE FEDERAL RESERVE BANKS.
Federal Reserve Bank operations during the
period between May 23 and June 20 continued
on a big scale, in answer to the great loan demands on the part of their members. Pressure
upon their liquid, resources was, however, relieved in a large degree by the very extensive
operations of the Treasury, including the redemption on June 3 and 17 of the outstanding
balances of the third and fourth series of
Treasury certificates issued in anticipation of
the Victory loan, also of two series of tax certificates in connection with the payment about
June 15 of income and excess war profit taxes,
besides the disbursement on June 15 of interest
due on the first Liberty loan. As the combined
result of these operations the Federal Eeserve
Banks show a net decrease of 140 millions in
their holdings of war paper and of over 100
millions in their total discounts on hand. The
share of war paper in the total discounts, which
was nearly 91 per cent on May 23, shows a decline to about 88 per cent on June 20. For the
New York Federal Reserve Bank a decrease of
124.5 millions in the amount of war paper and
a gain of 16.4 millions in the total of other discounts on hand are shown.
War paper on hand includes also the amounts
held under discount for other Federal Reserve
Banks. The aggregate amount of such discounts increased from 109.3 millions on May 23
to 127.5 millions on June 20, these figures
representing the contingent liabilities on rediscounted war paper reported for these two
dates by the Philadelphia, Richmond, and
Dallas banks. On the other hand, among the
discounted bills held by the Cleveland, Chicago,
St. Louis, and Minneapolis banks on the same
dates are included the above amounts of bills
discounted for the three borrowing Federal
Reserve Banks.
During the latter part of the period the
Federal Reserve Banks increased their holdings




of acceptances, the June 20 total of 274.7 millions being 81.5 millions in excess of the corresponding total for May 23. Purchases for
account of other Federal Reserve Banks, as
usual, were effected by the New York bank.
A net gain of 2.2 millions in Treasury certificates is due to additional investments in
1-year 2 per cent certificates to secure Federal
Reserve bank notes; the larger gain shown on
June 6 represents largely temporary certificates
issued to five Federal Reserve Banks to cover
advances to the Government pending receipt
of funds from depositary institutions. These
certificates were redeemed during the following
week, and the June 13 statement accordingly
shows a decrease of 23 millions under this head.
Total earning assets of the Federal ReserveBanks decreased during the period by about
17.5 millions, and on June 20 stood at 2,341.5
millions.
Between May 23 and June 6, as the result of
Government deposits and purchases of gold,
imported from Canada for account of the British Government, the gold reserves of the banks
increased from 2,178.7 to 2,201.8 millions.
Since then, following the removal of the gold
embargo, net withdrawals of gold for export
have caused a reduction of the banks' gold
reserves to 2,165.7 millions. Net deposits follow, on the whole, the same course as discounts,
and on June 20 stood at 1,771.3 millions, or
26.2 millions below the May 23 total.
Federal Reserve note circulation, except for
one week, shows a continuous decline, and on
June 20 stood at 2,488.3 millions, a reduction
of about 16 millions for the four weeks. The
reserve ratio of the banks shows a maximum
fluctuation between 51.8 per cent on May 29
and 53.7 per cent on the following Friday;
the June 20 ratio, 52.5 per cent, is about 2
points higher than the ratio shown four weeks
earlier.

687

FEDERAL RESERVE BULLETIN.

JULY 1,1919.

Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, May 29 to June 20, 1919.
[In thousands of dollars; i. e., 000 omitted.]
RESOURCES.

Boston.

New
York.

phia.

land.

Richmond.

Gold coin and certificates:
650 27,342 2,240
May29
3,639 252,840
502 24,510
2,124
June 6
3,881 263,578
562 30,901 2,117
June 13
3,116 260,047
422 37,159
2,166
June 20
3,401 228,778
Gold settlement fund, Federal
Reserve Board:
May 29
47,971 186,786 44,012 45,801 26,716
192,474 47,043 55,414 21,626
June 6
37,592
168,200 52,077 56,524 24,844
June 13
42,006
June 20
43,545 225,032 50,463 38,579 36,488
Gold with Federal Reserve
agents:
May 29
56,893 286,920 68,375 30,019 31,554
285,268 75,259 .32,847 I 32,960
June 6
54,279
June 13
51,135 284,281 71,181 .26,171 | 31,018
June 20
52,526 292,876 72,792 .19,789 j 34,160
Gold redemption fund:
24,942 14,303 1,659
8,404
May 29
14,268
24,829 8,435
243 10,144
June 6
16,645
24,829 11,957 2,236 11,549
June 13
19,539
24,829
1,834
6,827
June 20
12,037
Total gold reserves:
May 29
[122,771 751,488 127,340 204,821 68,914
766,149 !131,239 213,014 66,854
June 6
112,397
737,357 1135,777 215,832 69,528
June 13
jll5,796
771,515 1132,637 197,361 79,641
17,509
June 20....
Legal tender notes, silver, etc.:
303
1,005
50,684
7,356
May 29
275
1,104
399
51,890
7,084
June 6
939
51,808
405
274
7,059
June 13
51,869
450
7,408
250
June 20
Total cash reserves:
802,172 127,643 205,826 69,313
130,127
May 29
119,481 818,039 131,514 214,118 67,253
June 6
122,855 789,165 136,051 216,771 69,933
June 13
80,091
.124,917 823,384 132,887
June 20
Bills discounted:
Secured by Government
war obligations *—
.46,191 703,252 .83,577 131,404 81,594
May 29
634,661 .60,810 118,393 76,132
33,197
June 6
145,205 630,112 .91,277 128,601 82, 852
June 13
143,557 584,513 .76,588 121,593 84,764
June 20
All o t h e r 26,677 13,012 6,785 12,503
5,488
May 29
38,949 13,900 6,114 12,138
4,992
June 6
30,644 14,389 6,045 11,587
4,869
June 13
39,782 18,254 6,623 13,956
5,155
June 20
Bills bought in open market: 2
44,853 1,113 21,3(54 6,760
14,673
May 29
51,779
972 20,132 7,393
17,433
June 6
969 26,914 6,961
71,992
18,842
June 13
864 31,969 6,661
19,056
80,948.
June 20
U. S. Government bonds:
1,234
1,083
1,302
1,385
539
May 29
1,234
1,083
1,302
1,385
539
June 6
1,234
1,084
1,302
1,385
539
June 13
1,234
1,083
1,302
1,385
539
June 20
U. S. Victory notes:
16
50
May29
50
29
June 6
50
30
June 13
50
30
June 20
U. S. certificates of indebtedness:
68,482 19,690 16,467 5,860
16,916
May 29
17,916 | 66,140 25,680 16,976 9,160
June 6
66,276 20,685 17,026 6,260
16,916
June 13
63,466 21,681 17,512 6,260
16,916
June 20
Total earning assets:
183,823 844,616 218,777 177,103 107,951
May 29
798,881 202,747 162,698 106,057
174,106
June 6
186,401 800,376 228,705 179,670 108,894
June 13
185,253 770,061 218J72 178,780 112,875
June 20
Bank premises:
312
875
3,782
500
800 •
May 29
312
875
500
800 ! 3,782
June 6
312
875
500
800 i 3,782
June 13
875
500
800 ! 3,782
June 20




At.lanta.

Chicago.

St.
MimicLouis, apolis.

7,868 23,116
7,927 23,293
7,951 23,134
7,883 23,319

3,905
3,859
3,786
3,849

16,892
6,977
13,861
9,454

87,575
12,260
LOO, 321
73,640

42,592
49,597
47,647
43,715
5,806
6,584
5,165
4,772

City.

8,358
8,321
8,332
8,329

San
Dallas. Francisco.

Total.

106
75
121

7,278
7,290

9,342
9,599
8,512
9,959

346,618
354,969
355,811
332,676

27,905
18,158
26,712
24,034

21,467 39,914
25,174 38,161
24,397 36,901
22,530

6,792
6,256
6,076
5,610

34,911
19,920
30,756
24,894

586,742
581,055
582,675
581,238

266,485
248,326
258,341
255,844

56,804
58,573
56,528
55,532

40,263 29,957 16,594 L05,269
38,617 28,561 16,264 118,957
38,213 27,255 15,810 110,390
37,433 26,278 15,920 114,351

1,131,725
1,139,508
1,117,970
1,127,216

26,830
31,436
29,703
33J19

4,559
4,558
5,520
4,604

73,158 404,006
71,085 415,315
74,624 411,499
386,522

93,173
85,148
92,546
88,019

5,544
6,626
7,381

1,325
1 147
1,002

74,861
72,523
75,955
67,308

[04,934
416,640
412,646
387,524

72,198
64,647
73,122
72,405

228,140 61,623
195,120 53,956
192,979
213,504 58,579

13,011
13,174
13,125
15,296

18,604
16,197
16,574
21,980

5,283
5,382
6,345
7,059

27,640
32,776
34 236
37,722

377
375
376
376

4,477
4,476
4,476
4,476

7
8
7
7

100,460
94,135
103,574
105,742
218
218
218
218

106
94
88
87

2,413
3,021
2,864

2,036
961
2,172

122,658
126,272
137,418
124,595

192
149
206
188

2,136
2,043
2,006
1,971

242
381
204
268

67,363
68,539
68,114
68,734

95,482 75,738 82,019 35,191 151,800 I 2,255,106
87,505 78,832 80,140 34,480 149,818 2,270,343
95,193 78,411 78,783 34,191 152,034 2,261,988
90,908 76,375 68,770 33,655 150,411 2,234,459

45,184 53,028
44,030 47,704
47,038 48,116
41,617 48,132

25,887 70,815
27,074 65,270
25,547 67,824
23,277 53,399

1,802,893
1,620,994
1,695,576
1,621,928

5,361 36,312 26,927 13,469 !
3,859 34,343 25,353 11,544 |
3,947 34,142 24,837 12,003 !
4,913 42,444 24,375 12,664 I

8,350
9,567
10,436
10,070

4,264 7,088
5,360 I 7,142
4,108 i 8,753
6,893 | 17,823
1,153
1 153
1,153
1,153
-!

9,584 21,642
10,549 22 612
10,599 22,612
10,599 23,012

11,894
13,163
14,346
15,214

75,632 81,827 33,055 .51,558 2,187,743
73,738 79,991 32,437 .49,437 2,201,804
78,323 78,577 32,185 .51,830 2,193,874
31,684 .50,143 2,165,725
76,288

2,309
2,357
2,647
2,889

1,703
1,438
1,331
1,484

7,256

116
116
116
116

577
169
10
12
8,867
8,867
8,867
8,868

186,499
190,130
182,598
215,512

838 49,197 I 183,650
613 49,156 ! 198,307
649 54,758
234,537
649 65,080
274,736
3,966

2.632
2.633 !
2,632 1
2,633!

10
246
246
246

27,131
27,129
27,130
27,131

333
°333

15,182 i 9,171 6,456
19,182 9,710 11,883
16,182 9,520 6,883
16,677 6,914 6,885

4,900
4,900
5,400
5,411

7,450
12,845
6,046
5,950

201,800
227,553
204,405
201,883

300,503 90,572 66,930 105,240 62,518 143,563 2,402,056
271,181 89,218 65,103 102,966 61,906 141,448 2,264,446
270,877 94,782 69,620 98,018 60,399 143,263 2,344,579
301,294 93,372 71,629 106,341 57,678 139,726 2,341,523
2,936 | 541
2,936
541
2,936 ! 541
2,936 | 541

401
401
401
401

221
221
221
221

400
400
400
400

10,986
10,986
10,986
11,066

688

FEDERAL. RESERVE BULLETIN.

JULY 1,

1919.

Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, May 29 to June 20, 1919—Continued.
[In thousands of dollars; i. c , 000 omitted.]
RESOURCES—Continued.

Uncollected items and other deductions from gross deposits:
May 29
June 6
June 13
June 20
5 par cent redemption fund
asaiust Federal Roservobank
notos:
Mav 29
June 6
June 13
Jim;1 20 .
All other resources:
May 29 . . .«
Juno 6
June 13 . . .
June 20
Total resources:
Mav 29
June 6.
June 13
June 20.
i Includes bills discounted for
other
Federal
Reserve
Banks:
May 29
June 6
June 13
June 20
2 Includes bankers acceptances
bought from other Foderal
Reserve Hanks:
With their indorsementMay 29
June 6
June 13
June 20
Without their indorsement—
May 29
June 6
June 13
June 20

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

Philadelphia.

Cleveland.

Richmond.

Atlanta.

154.077
51,919
53,699 ! 162.255
81,508
199,236
198,535
86,344

59.387
61.674
79,784
81,726

57,242
48,462
62,749
79,025

43,542
60,073
76,885
67,429

31,933 77,861
33,868 71,351
43,340 86,048
35,731 107,182

39,368
46,052
57,731
46,022

14,705
12,633
16 062
14', 465

52,261
49,947
fi5.813
62.374

24,381
23,648
30,787
31,389

27,983
27,095
35,419
37,935

634,639
650,757
835,362
848,157

840
844
842
843

1,803
1,752
1, 734
1,593

975
1,025
1,025
1,025

808
774
803
834

180
164
464
460

489
470
502
495

1,376
1,480
1,136
1,302

618
575
570
610

357
289
322
358

730
707
714
729

379
379
379
396

408
409
408
408

8,963
8 868
8*899
9,053

511
421
388
464

2,864
2,911
2,807
3,022

824
913
977
1,557

762
822
1,402
888

596
755
502
736

334
351
387
385

1,251
1,331
1,362
1,547

393
441
476
553

232
244
252
175

504
358
395
420

701
740
755
764

1,063
755
629
681

10,035
10,042
10,332
11,192

358,020
349,351
392,794
398,621

1,809,314
1,781,620
1,797,100
1,800,377

408,106
398,373
447,042
436,467

442,616
427,749
462,270
458,631

221,894
234,614
256,990
261,983

208,295
201,565
223,976
209,879

788,861
764,919
775,005
801,785

226,974
224,332
249,293
232,006

157,962
157,101
164,667
163,002

241,155
234,519
244,124
239,035

123,391
121,374
126,732
124,103

325,197
319,925
332,153
329,561

5,321,785
5,215,442
5,472,146
5,455,450

52,332
49,458
58,142
65,874

10,000
12,000
14,800
7,600

15,000
24,000
27,960
23,980

Boston.

NewYork.

35,533
29,781
15,000
30,000

Chicago.

858
100

Total.

112,865
115,239
115,902
127,454

858
100

j
i

!

•:

:

•

|
26,429
21,916
26,211
27,475

1

26,429
21,916
26,211
27,475

LIABILITIES.
Capital paid in:
May 29
6,852
June 6
6,877
June 13
6,877
J a n e 20
6,877
Surplus fund:
May 29
2,996
June 6
2,996
June 13
2,996
June 20
! 2,996
Government deposits:
!
May 29
! 21,702
June 6
!
61
June 13
30,978
^11110 20
44,023
Due to members—reserve account:
May 29
97,824
June 6
101,557
June 13
i 100,735
June 20
.ilOl,515
Deferred availability items:
\
May 29
! 47,214
June 6
! 43,487
June 13
i 59,092
June 20.
\ 50,516
Other deposits, including foreign Government credits:
May 29
191
June 6..i 1,556
June 13
i
353
June 20
|
232




21,345
21,384
21,384
21,444

7,632
7,632
7,633
7,636

9,225 4.195
9,225 4,209
9,232 4,209
9,236 '4,209

3,245
3,244
3,247
3,247

11,440
11,442
11,446
11,456

|
j
!
j

3,865
3,865
3,867
3,867

3,000
3,006
3,006
3,009

3,785
3,761
3,761
3, 761

3,235
3,237
3,238
3,240

4,770
4,770
4,774
4,774

82.589
S2;652
82,674
82,756

21,117
21,117
21,117
21,117

2,608
2,60S
2,608
2,608

3,552
3,552
3,552
3,552

1,510
1,510
1,510
1,510

6,416
6,416
6,416
6.416

!
!
j
!

1,603
1,(503
1,603
1,603!

1,415
1,415
1,415
1,415

2,421
2,421
2,421
2,421

1,184
1,184
1,184
1,184

2,448
2,448
2,448
2,448 j

49,466
49,460
49,466
49,460

18,094
8,795
22,642
15,918

13,218 12,311
410 3,506
43,890 29,743
14,593 27,795

692,133
710,129
670,417
691,557

97,514 131,152
106,214 130,763
! 94,291 129,645
| 89,171 120,338

2.196
2,196
2,196
2,196

2,063 3,638 24,257 | 9,912
562 5,401 : 1,458
1,578
15,035 24,299 4,957 |24,332
18,097 8,700 9,410 : 8,83.1

51,255 46,727 236,827 j 55,812 i 50,080 73,434
53,204 46,636 235,740 1 00,359 ! 53,576 78,038
52,321 44,088 234,902 j 59,089 \ 48,94869,651
50,957 44,738 235,308 | 61,531 51,788 72,719

129,876 59,065 43,400 39,165
116,959 51,122 44,217 50,900
156,252 71,049 53,349 62,346
153,585 97,163 65,09S 67,323
136,551
118,557
111,188
111,861

722
730
1,012
1,061

1,679
506
705
666

6,382 12,084
658
1,339
7,734 17,422
7,952

199
304
106
299 j

24,258
23,158
24,572
24,175

58.677
55,349
69,727
90,075

142
293
155
341

2,520
2,647
2,092
3,384

35,702
36,888
40,653
36,619

5,978 37,689
7,723 35,134
12,811 39,164
14,513 41,951

875
882 i
878 I
763 !

420 1,157
1,170 1,607
765 1,062
1,668 884

6,397 6,421
141,479
1.510
750
26,058
13; 844 10,369 ! 245,245
2,736 2,412 ! 161,495
40,644 82,716 ! 1,656,118
43,154 85,734 j 1,705,10 4
40,574 82,922 | 1,033,583
42,562 86,446 I 1,648,630
17,137 19,177
17,515 14,897
13,597 21,127
18,436 22,613

|
!
!
I

517, CSS
497,349
623,739
682,097

169 j 5,693 I 150,324
239 j 5,873 i 134,364
77 I 6,172 !
227 ! 5.878 i

127,5(55
127,264

689

FEDERAL RESERVE BULLETIN.

JULY 1,1919.

Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, May 29 to June 20, 1919—Continued.
[In thousands of dollars; i. e.} 000 omitted.]
L I A B I L I T I E S—Continued.

New

i Boston.

Philadel-

Cleve- Rich- ! Atland. mond. ; lanta.

Chicago.

St.
Louis.

j San
Minne-j Kansas Dallas.! Franapolis. | City.
! Cisco.

Total.

j

-—

—

i—

Total gross deposits:
May 29
June 6
J u n e 13
.Tune 20
Federal Reserve notes in actual
circulation:
May 29
TurieO
J u n e 13
J u n e 20
-Federal Reserve b a n k notes in
circulation—net liability:
May 29
Juno 6
J u n e 13
J u n e 20
All other liabilities:
May 29
June 6
J u n e 13
J u n e 20
Total liabilities:
May 29
June 6
J u n e 13
J u n e 20

1.60.931
IW] 001
191,158
190,316

97(5,054
954,440
969,499
972,951

170,519
158,506
210,242
201,988

188,542 92,082
178,992 105,9S6
;213,442 129,808
213,897 130,670

; 172,171.
.1.73,771
il 72,032
'. 172,757
|

712,390
736, (-74
-oa ooo
736,288
735,220

205,734
1207,352
infto Tin
1203,710
|200, «19

i223, 599
1218,091
rur
no/
217,934
213,454

115,484
114,780
112,904
110,852

34,730 18,609
34,317 i 19,101
34,490 ! 19,564
34,692 I 20,190

15,191
15,237
15,324
15,588

5,524
5,504
5,870
5,997

9,023 22,680 ! 13,751
9,130 22,990 I 14,032
9,458 23,202 14,341
9,507 ! 23,780 14,009

5,833
5,883
5,918

13,078
13,688
14,322
14,947

3,004
3,174
3,285
3,426

2,507
2,649
2,786
2,904

1,813
1,879
1,937
2,053

1,402
1,403
1,519
1,606

3,717
3,888
3,992
4,250

1,274
1,336
1,371
1,443

1,032 ! 2,033
1,091 ! 2,0""
1,130 ! 2,102 !
1,276 • 2,324

jl, 809,314
11,781,620
11,797,100
1,800,377

408,106
398,373
447,042
436,467

442,616
427,749
462,270
458,031

221,894
234,014
250,990
261,983

1208,295
1201,505
1223,970
j2G9,879

788,861
764,919
775,005
1801,785

226,974
224,332
249,293
,232,006

•
!
'
j

16,356
16,208
16,190
16,638

! 2,714
2,838
2,941 i
3,037 |
368,020
;349,351
1392,794
:398,621

79,765
70,049
93,114
77,954
1113,350
115,509
115,12S
115,995

322,281 102,301
299,137 99,587
311,078 124,952
338,177 107,744
422,327
421,040
1418,271
1117,700
j

104,180
.103,909
103,159
102,740

62,866
03,127
70,258
08,907

124,304
116,118
127,299
123,500

64,347 |114,3O7
62,418 j107,254
08,092 '.120,590
03,901 1117,349

2,465,559
2,362,875
2,030,132
2,619,180

83,894 95,585 46,208 1194,310 2,519,292
82,029 97,102 40,122 ! 195,989 2,513,037
82,975 95,993 45,517 ! 194,091 2,499,205
82,417 i 91,023 40,088 1195,132 2. 4SS, 253

157,902
157,101
164,667
163,002

6,821
108,427
6,783
109,240
6,831
170,937
0,833 j 173,775

12,907 I 7,020
13,021 ! 7,030
12,488 : 7,290
7,503
12,400

, 7 00

241,155
234,519
244,124
239,035

2,541
2,081
2,816
2,975

30,452
38,160
39,072
41,714

1123,391 J325,197
1121,374 ^319,925
1126,732 332,153
J124,103 329,501

5,321,785
5,215,442
5,472,146
5,455,450

1,337
1,383
1,411
1,467

MEMORANDA.
C o n t i n g e n t liability as indorser j
on—
i
Discounted paper redis- |
counted with other Fed- j
eral Reserve b a n k s May 29
June 6
J u n e 13
J u n e 20
>.
Bankers' acceptances sold I
to other Federal Reserve i
banks—
!
May 29
June 6
J u n e 13
J u n e 20
!

35,533 !.-..
35,281 :....
36,366 i....
56,967 ....

45,000 ':
50,000
50,000 ;
45,000 ;

...I.
...j.

.... 32,332
.... 29,958
....: 29,536
.... 25,487

!
i
;
i

112,865
115,239
115,902
127,454

858
100

858 j
100 j

Maturities of bills discounted and bought, also of'Treasurycertificates of indebtedness.
[In thousands of dollars, i. e., 000 omitted.]
Within
15 days.
Bills discounted:
May 29
June 6
J u n e 13
J u n e 20
Bills bought:
May 29
June 6
J u n e 13
J u n e 20
U n i t e d States certificates of indebtedness:
May 29
June 6
J u n e 13
J u n e 20




10 to 30
days.

31 to 60
days.

01 to 90

days.

727,796
542,468
577,715
508.510

35,738
37,495
42,424
57,993

141,123
144,953
156,588
186,835

60,509
61,398
75,137
54,885

52,301
57,720
61,213
61,400

39,711
42,542
48,315
00,662

69,632
71,657
82,965
99,848

3,318
411
162
244

765
391
632
235

13,720
7,121
11,130
13,036

24,226
24,810
26,310
29,217

22,006
26,382
42,044
52,820

30,938
53,579
30,235
25,097

Over 90
days.

Total.

1,989,392
1,811,124
1,878,174
1,837,440
183,650
198,307
234,537
274,736

153,053
166,051
162,246
103,271

201,800
227,553
204,405
201,883

690

FEDERAL EESEEVE BULLETIN.

JULY 1,1919.

FEDERAL RESERVE NOTES.
Federal Reserve note account of each Federal Reserve Bank at close of business on Fridays, May 29 to June 20, 1919.
[In thousands of dollars, i. e., 000 omitted.]

Boston.

Federal Reserve notes received
from agents:
May 29
.Time 6
June 13
June 20
Federal Reserve notes held by
banks:
May 29
June 6
June 13
June 20
Federal Reserve notes in actual
circulation:
May 29
:.
June 6
June 13
June 20
Gold deposited with or to credit
of Federal Reserve agent:
May 29
June 6
June 13
June 20
Paper delivered to Federal
Reserve agent:
May 29
June 6
June 13
June 20




New
York.

Phila- Cleve- Richdelphia. land. mond.

Atlanta.

Chicago.

178,160
181,545
179,902
180,293

818,059
824,619
827,811
819,149

217,083
219,867
216,888
213,899

235,467
232,494
230,719
228,437

120,020
117,856
116,714
115,386

117,117
119,491
120,958
119,455

453,179
455,021
450,036
447,539

75,669 11,349
87,945 12,515
91,523 13,178
83,923 13,280

11,868
14,400
12,785
14,983

4,536
3,076
3,750
4,534

3,767
3,922
5,830
3,460

30,852
33,975
31,765
29,839

223,599
218,094
217.934
213,454

115,484
114,780
112,964
110,852

1113.350
1115; 569
115,128
115,995

422,327
421,046
418,271
417,700

5,989
7,774
7,270
7,536
172,171
173,771
172,632
172,757
56,893
54,279
51,135
58,526
166,352
155,622
168,916
167,768

742,390
736,674
736,288
735,226

205,734
207.352
203,710
200,619

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

47,788
48,064
47,039
47,925

215,733
217,461
215,615
217,095

2,708,447
2,722,606
2,709,895
2,693,198

13,778 1,935 6,469
14,238 i 2,154 6,156
13,444 ! 2,404 6,238
14,626 | 2,582 j 7,032

1,520
1,942
1,522
1,237

21,423
21,472
20,921
21,913

189,155
209,569
210,630
204,945

104,180 | 83,894 [ 95,585 46,268
103,909 ! 82,629 i 97,102 46,122
103,159 82,975 j 95,993 45,517
102,740 82,417 I 94,623 46,688

194,310
195,989
194,694
195,182

2,519,292
2,513,037
2,499,265
2,488,255

16,594
16,264
15,810
15,920

105,269
118,957
110,390
114,351

1,131,725
1,139,508
1,117,970
1,127,216

49,774 \ 89,917 53,652
52,803 i 82,216 53,040
51,140 j 82,268 51,033
62,500 90,588 48,301

120,361
107,629
115,216
107,544

2,079,281
1,955,496
2,001,203
2,010,114

56,804
58,573
56,528
55,532

774,782
725,389
732,748
705,243

63,987
65,502
68,600
70,126

158,956 92,418
143,626 89,244
160,109 93,837
158,835 98,546

83,681
78,414
79,568
80,952

274,317
244,064
243,555
273,073

Total.

102,054
103,258
102,231
1101,655

117,958
118,147
116,603
117,366

286,920 68,375 1130,019 31,554 42,592 266,485
285,268 75,259 132,847 32,960 49,597 248,326
284,281 71,181 126,171 31,018 47,647 258,341
292,876 72,792 119,789 34,160 43,715 255,844
151,084
157,947
154.213
146,638

San
Francisco.

85,829
84,783
85,379
84,999

40,263
38,617
38,213
37,433
I
!
j
|

!
I
i
!

29,957
28,561
27,255
26,278

JULY 1,1919.

691

FEDERAL RESERVE BULLETIN.

Federal Reserve note account of each Federal Reserve agent at close of business on Fridays, May 29 to June 20, 1919.
[In thousands of dollars, i. e., 000 omitted.]

i

!

N°*

Philadelphia.

Cleveland.

!307,200
312,280
.317,800
317,800
j
104,520
107,135
110,278
112,887

1,546,780
1,566,880
1,580,880
1,587,580

359,740
373,300
390,980
,396,980

353,400
354,000
|356,100
357,100

223,220 :'225,000 608,600
223,620 22~,000 1609,720
224,120 229,600 :619,680
225,120 j232,000 ;620,600

202,680
205,145
207,522
204,913

961,659
968,219
968,811
960,149

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

Rich- S At- j Chimond. lanta. cago.

Boston.

Total.

FEDERAL RESERVE NOTES.

Received from Comptroller:
May 29
June 6
June 13
June 20
Returned to Comptroller:
May 29
June 6
June 13
June 20
Chargeable to Federal Reserve
agent:
May 29
June 6
June 13
June 20
In hands of Federal Reserve

I

May29
24,520
June 6
23,600
June 13
27,620
June 20
24,620
Issued to Federal Reserve Bank
less amount returned to Fed- |
eral Reserve agent for re- j
demption:
May 29
178,160
June 6..
181,545
June 13
179,902
June 20
180,293
-Collateral held as security for
outstanding notes:
Gold coin and certificates
on hand—
May 29
June 6
June 13
June 20
'Gold redemption f u n d May 29
June 6
11,279
June 13
11,135
June 20
11,526
'Gold settlement fund, Federal Reserve B o a r d May 29
47,000
June6
43,000
June 13
40,000
June 20
47,000
Eligible paper minimum
required: i
May 29
|121,267
June 6
1127,266
Juno 13
128,707
Juno 20
121,767




1

585,121
598,661
612,069
627,431

I
136,617

85,413 74,212
142,233 89,086 76,806
146,812 92,261 78,748
151,201 95,143 80,607

223,123
231,067
244,168
245,779

267,987
264,914
263,839
261,957

143,600 6,040 32,520
143,600 11,200 32,420
141,000 27,280 33,120
141,000 31,880 33,520

818,059
824,619
827,811
819,149

217,083
219,867
216,888
213,899

183,740
183,740
183,740
183,740

235,467
232,494
230,719
228,437

I 47,988 !124,741
i 48,984 1130,579
50,933 i 139,284
51,865 144,181

149,008
146,814
145,372
144,513

1177,012 483,859
1178,016 479,141
|178,667 480,396
j180,135 476,419
|
28,988 :i 59,895 30,680
28,958 58,525 24,120
28,658 ' 57,709 30,360
29,127 60,680

120,020
117,856
116,714
115,386

117,117
119,491
120,958
119,455

17,625
20,625
14.125
8J125

13,180
11,528
10,541
9,136

14,486
13,870
14,792
14,903

12,394
12,222
12,046
11,664

90,000
90,000
90,000
100,000

53,889
61,389
56,389
57,889

100,000
100,000
100,000
100,000

29,000
31,000
29,000
32,000

531,139
539,351
543,530
526,273

148,708
144,608
145,707
141,107

105,448
99,647
104,548
108,648

88,466
84,896
85,696
81,226

164,800 103,160
166,800 103,160
167,300 103,560
167,500 1103,560

30,911
32,057
32,961
33,741

137,338
135,727
135,763
135,886

100,969
99,823
99,919
99,139

116,434
117,038
116,231
115,455

71,493
71,164
70,609
70,220

19,380
17,580
19,160
18,520

15,140
15,040
14,540
14,140

14,380
13,780
14,000
13,800

23,705
i 23,100
23,570
22,295

117,958
118,147
116,603
117,366

85,829
84,783
85,379
84,999

102,054
103,258
102,231
101,655

47,788
48,064
47,039
47,925

13,052
13,052
13,052
13,052
5,340
5,502
4,797
8,900

3,37.4
2,142
4,098
3,101

37,000
43,000
43,000
37,000

261,145
242,824
253,544
246,944

53,430
56,431
52,430
52,431

24,800
24,300
22,800
20,800

74,525
69,894
73,311
75,740

186,694
206,695
191,695
191,695

61,154
59,574
60,075
61,834

276,260
280,300
282,020
285,540

4,497,080
4,547,600
4,605,660
4,628,520

48,366 31,667 54,527 1,383,785
49,762 31,996 56,839 1,427,071
51,069 32,951 60,405 1,472,748
52,045 33,340 62,445 1,510,860

59,702
62,933
64,977
65,974

2,500
2,500
2,500
2,500
2,554 i 3,092
1,960 ' 4,097
2,018 j 2,147
2,160 4,215

453,179
455,021
450,036
447,539

197,040 131,880
198,660 131,880
200,740 132,880
201,860 132,880

!

2,411
1,265
2,361
3,581 !

221,733
223,461
221,615
223,095

3,113,295
3,120,529
3,132,912
3,117,660

6,000
6,000
6,000
6,000

404,848
397,923
423,017
424,462

215,733
217,461
215,615
217,095

2,708,447
2,722,606
2,709,895
2,693,198

228,498
231,498
224,998
218,998

11,581
11,581
11,581
11,581
2,597
3,201
1,895
2,918

2,829
2,499
2.545
2,655

15,101
14,148
12,847
j 12,058

87,251
83,713
81,222
86,817

27,360
25,360
25,360
23,360

2,184
2; 184
1,684
1,684

90,168
104,809
97,543
102,293

815,976
824,297
811,750
821,401

45,566 72,097 31,194 110,464
46,166 74,697 31,800 98,504
47,166 74,976 31,229 105,225
47,566 75,377 32,005 102,744

1,576,722
1,583,098
1,591,925
1,565,982

For actual amounts, see "Paper delivered to Federal Reserve agent," on p . €90.

692

FEDERAL RESERVE BULLETIN.

CONDITION OF SELECTED MEMBER
BANKS.

Substantial liquidation of Treasury certificates issued in anticipation of the Victory loan
and of taxes due about the middle of June,
offset in a measure by the increase in other
loans and investments, accounts for the principal change in the condition of 771 reporting
member banks in leading cities between May 23
and June 20. For the four weeks under review
the total of Liberty bonds and Victory notes
held among the assets of these banks shows an
increase of 162.7 millions, while the total of
Treasury certificates during the same interval
declined by 737.2 millions. The result is a net
decrease by 574.5 millions in the banks' holdings of United States war securities. As
against this very substantial decline, the
amount of war paper on hand increased by
258.7 millions. Aggregate holdings of United
States war securities and war paper from
3,822.3 millions on May 23 reached the high
level of 4,019.9 millions on June 6, following
the final allotment of Victory notes to large
subscribers. Since then, as the result of the
redemption of Treasury certificates and the
absorption by the public of Victory notes, the
to.tal declined to 3,506.4 millions.
For the New York City member banks
liquidation of 398.4 millions of Treasury certificates and an increase of 115.1 millions in
other United States war securities are noted.
For the member banks in the 12 Federal
Reserve Bank cities corresponding changes include a decrease of 574.9 millions in certificate
holdings as against an increase of 122.3 in
other United States war securities.




JULY 1,

1919.

Other loans arid investments show a continuous upward course until June 13, when
the maximum of 10,772.9 millions is shown.
Of the total increase of 257.8 millions under
this head over 43 per cent is the share of the
New York City banks. On the following
Friday this item shows a decline of 61 millionsfor all reporting banks and a corresponding
decline of 45.6 millions for the banks in New
York City alone.
Of the aggregate loans and investments of all
reporting banks the combined holdings of
United States war securities and war paper on
June 20 constituted 24.2 per cent, compared
with 26.2 per cent on May 23 and 26.9 per
cent two weeks later. For the New York
City banks this ratio shows a rise from 28.4
per cent on May 23 to 30.5 per cent on June 6
and a subsequent decline to 27.2 per cent.
Government deposits increased from 627.9
millions on May 23 to 1,180.6 millions on
June 6 and on June 20 stood at 823.2 millions..
Other demand deposits (net), except for the
last week under review, show a movement
opposite to that disclosed by Government
deposits. The large decline under this head
shown on June 20 is caused apparently by the
large tax payments made about June 15.
Only nominal changes are shown in the total
of time deposits and of cash in vault, while
reserve balances (all with the Federal Reserve
Banks) show a decline from about 1,298 to
about 1,269 millions, the lowest figure of
1,257.5 millions on June 13 coinciding with
a maximum of loans and investments on the*
one hand and of demand deposits on the
other.

693

FEDERAL RESERVE BULLETIN.

JULY 1,1919.

Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve
Bank cities and in Federal Reserve Branch cities, as at close of business on Fridays, from May 29 to June 20, 1919.
1. ALL REPORTING MEMBER BANKS.
[In thousands of dollars: i. e. 000 omitted.]
Boston.
Number of reporting
banks:
May 29
'June 6
June 13
June 20
United States bonds to
secure circulation:
May 29
June 6
June 13
June 20
';
Other United States
bonds, i n c l u d i n g
Libertv bonds:

Philadelphia.

Cleveland.

Richmond.

' San
Dallas. | FranI cisco.

Atlanta.

107
108
109
109
14,308
14,308
14,308
14,308

20,050
May "29
10,390
June 6
16,864
June 13
16,375
Juno 20
United States Victory
notes:
May 29
June 6
11,147
10,919
June 13
10 686
June '20
United States certificates of indebtedness:
104,418
May 29
88,962
June 6
83,125
June 13
53 003
Juno 20
Total United States
securities owned:
138,776
May 29
130,807
June 6
125,216
June 13
94,372
June 20
Loans> secured
by
United States bonds,
Victory notes, and
certificates:
87,878
May 29
94,333
June 6
73,791
June 13
68,988
June 20
All other loans and investments:
807,010
May 29
817,887
June 6
830,391
June 13
June 20
1 843,111
Total loans and invest- j
ments:
i
May 29
'1. 033,664
.Tune 6
1 043,027
June 13
1 029,398
006.421
June 20
Reserve with Federal
Reserve Bank:
67,309
May 29
,
71,524
June 6
June 13
69,407
June 20
Cash in vault:
21,349
May 29
24,581
June 6
23,829
June 13
23,789
June 20
Net demand deposits
on which reserve is
computed:
716,786
May29
June 6
; 714,784
June 13
i 734,739
June 20
; 723,317
Time deposits:
I
May 29
j 109,059
!
108,181
June 6
108,017
June 13
June 20
; 109,764
Government deposits: i
May29
! 63,374
June 6
1 111,735
l
84,019
June 13
June 20
1 77,590




New
York.

56 i
50 |
56
56 !

88

49,513
49,579
49,079
48,980

11,597 S
11,597
11,597
11,597

40,960
41.373
41,372
41,421

25,270
25,570
25,590
2o,590

15,615
15,615
15,515
15,515

20,112
20,135
20,133
20,141

312,871
291,202
298,170
300.704

53,212
32.832
34', 001
35,487

87,360
65,313
61,011
62,170

58,080
41,878
41,807
40,108

47,281
29,992
28,914
28,993

10*, 721
53,454
53,208
52,715

197,50S
180,3S2
171,795

30,026
20,355
IO; 179

55,455
51,745
47,775

17,497 18.406
10,652 io;401
15,271 15.906

I124,631

44 i
44 ;
44 j

17,100
17,056
17,056
17,056

14,112
14,118
14,117
14,117

18,324: 34,591
18,32-1 I 34,501
18,324 i 34.605
18.324 I 34', 605

208,378
209,153
?68,566
208,540

31,309
23,017
22,714
22,358

24,202
20,473
20,411
20,469

40.136
30;309
3i, 801
34!603

852,914
636,978
630,292
038,781.

62,778 22,660 1 :
5,720 9,295 ! 5,262 12,130
62,752 ! 19,479 , 5,508 10,117 I 5,138 13,217
58,495 17,586 j 5,976 11,222 I 4,268 10,579

4-17,884
424,065
388.738

30,321
10,506
14,120
15,029

95,167
95,507
71,276

121,892
126,317
114.918
83', 019

70,500
73,719
72,313
59,556

03,490
04,401
62,544
52,567

227, 764
226,290
213,459
182,851

,139,323
,127,579
,070,853
808,761

189,440
169,622
167,400
137,539

250,212
288,458
269,676
234,385

53,850
.58,664
56.362
40', 525

126,342
128,414
123,371
112,981

352,597
302,666
349,552
314 202

576,749
778,099
771,033
784,247

165,047
174,125
177,431
180,502

110,341
111,464
114,216
111,615

43,657
43,974
43,939
43,250

27,571
26,788
27,432
29,839

97,799
101,939
102.763
105,' 514

27.318
26;366
27,939
27,543

642,082 998,540 386,794 305,339
673,607 1,015,101 385,361 303,806
654,350 1,029,751 383,118 310,719
647,716 1,014,196 384,652 312,870

1,445,941
1,440,666
1,464,249
1,457; 182

459,252
459,008
461,525
455,690

746,939
589,230
537,216
347.222

4,189,578
•1,219,075
4,307,682
4,258,186

772
770
771
771

44,|

I
!
i
i

5,905,650 996,569 1,359,093 584,301
6,124,753 1,017,354 1,415,023 587,999
6,149,568 999,241 1,413,643 583,419
5,911,194 965; 757 1,300,196 568,427

Total.

54,156
49,905
50,775
39,0S0

!
i
I
'

13,331
9,402
9,596
9,710

42,975
34,154
32,463
24,915

101,583 1 63,176
106,187 ! 56,223
101,436 • 5-1.437
°S,761 47,487

I
12,530

51,703
48,304
45,811
39.091

37,103
37,942
39,581
31.001

9-1,005 1,739.582
79,992 1,514; 452
71,994 1,422,73ft
57,073 1,040.664

97,1S4
94,824
92,759
86,788

79,689
82,001
83,457
74,062

.08,732
.03,022
.57,077
.36,800

2,860,90-i
2,868; 407
2,752,259
2,336.723

24,225
25,271
7,389 24,364
7,262 23.718

1,194,722
1,420,581
1,4,16,615
1,438,204

13,526
30,312
39,698

14,403
17,266
16,006
16,078

385,750
386,813
388,661
384,221

1238,211
236,901
219,019
211,058

455,082
459,588
161,040
474,091

181,891
185,037
187,614
181.731

525,386
532,539
536,315
542,845

10.561,604
10,656,381
10,772,909
'0,711,859

1,896.337
1,905;271
1,916,564
1,876,898

514,651
519,366
518,036
500,525

313,937
|306,650
303,768
298,243

566,669
571,678
569,805
576,957

268,764
274,468
278,460
263,055

718,343
720,832
718,356
703,423

14,617,230
14,945,429
14,941,783
14,486,786

37,499
39,885
38,645
41,116

21,181
23,114
22,381
23,084

45,401
47,663
39,522
43.352

18,301
20,830
19,668
19,987

53,608
52,684
53,478
55,823

1,285,891
1,303,769
1,257,523
1,268,989

10,238 8,650
10,398 I 8,650
10,012 8,178
10,284 8,521

15.732
15,567
16.053
15,635

9,846 20,768
9,362 21,480
9,603 21,058
9,470 20,284

344,662
368,882
374,450
358,588

450,634
446,725
455,273
451,250

10,442,847
10,375,244
10,587,031
10,321,405

655,756
662,136
628.057
645,'433

65,490
67,717
63,844
61,890

90,877
90,477
90,164
80,763

33,263
33,217
34,340
33,330

28,779
30,678
29,151
29,137

168,427
163,844
169,575
165,667

114,222
124,743
123,221
121,630

18,278
19,340
18,011
18,327

32,630 15,480
35,791 17,927
32,240 17,468
34,213 17,634

12,807
14,040
13,321
12,942

64,662
67,003
81,456
65,859

4,940,728
4,900,337
4,967,634
4,833,149

651,349
649,250
657,782
635,002

804,847
784,694
796,367
790,792

311,023
309,583
321,523
310,436

244,083
248,108
250,687
244,270

1,246,854
1,234,013
|1,271,684
',1,220.379

285,751
289,862
302,702
296,984

224,400
218,052
233,814
230,370

398,221
405,196
413,100
410,448

284,929
280,637
279,113
279,026

20,634
20,901
20,776
20,603

294,143
294,063
295,722
294,274

79,267
80,174
80,335
81,879

1116,371
! 115,329
116,447
116,399

434,171
435,822
437,033
440,600

97,797
97,930
97,078
97,388

55,563
56,101
55,814
56; 281

72,088
72,564
72,787
73,206

28,978 136,689
28,861 136,600
136,225
30,167 136,547

1.729,689
i;727,163
1,729,575
1,736,134

123,254
468,075
414,668
397,209

62,388
©8,337
71,676
53,817

59,702 29,321 30,035
130,887 46,390 46,638
102,734 31,961 27,848
24.155 j 21,049

59,889
128,991
123,362
106,633

34,756
55.153
36,332
25,836

16,726
13,187
8,293
5,001

26,464
35,169
21,606
14,948

15,176 20,212
18,782 27,248
10,882 12,357
5,246 8,856

541,247
1,180,592
945,738
823.236

168,171
174,640
181,726
175,008

694

FEDEKAL RESERVE BULLETIN.

JULY 1, 1919.

Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve
Bank cities, and in Federal Reserve Branch cities as at close of business on Fridays from May 29 to June 20, 1919—
Continued.
2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES.
[In thousands of dollars; i. e., 000 omitted.]

Boston.

Number of reporting banks:
May 29
June 6
June 13
June'20
•
United States bonds to secure
circulation:
4,278
May 29
4,278
June 6
4,278
June 13
4,278
June 20
Other United States bonds,
including Liberty bonds:
8,916
May 29
7,351
JuiieG
7,295
June 13
7 040
June 20
United States Victory notes:
May 29
1
June6
! 4,827
Junel3
1 4,738
Juno 20
j 4,738
United States certificates of[
i
indebtedness:
May29
67,287
Jurie6
59,209
Junel3
56,124
June 20
31,770
Total United States securities
owned:
May 29
80,481
June 6
75,665
Junel3
72,435
June 20
47,826
Loans secured by United
States bonds. Victory notes,
and certificates:
May 29
69,553
June 6
74,251
June 13
53.880
June 20
50,983
All other loans and investments:
May 29
578,711
June 6.
586,566
June 13
594,553
June 20
605,703
Total loans and investments:
May 29
728,745
June 6
J 736,482
June 13
720,868
Juno 20
704,512
Reserve with Federal Reserve Bank:
May 29
52.870
June 6
56,741
June 13
54,355
June 20
54,881
Cash in vault:
May 29
12,877
June 6
14.817
June 13
14,109
June20
14,625
Net demand deposits on j
which reserve is computed: I
May 29
jooO, 558
June 6
'552,575
June 13
,566,399
June 20
J559.514
Time deposits:
May 29
j 33.170
June 6
1 32,454
June 13
31,932
June 20
33,594
Government deposits:
May 29
45,396
June 6
1 87,075
June 13
: 65,653
June 20
62; 986




New
York.

| Phila- Cleve- Rich: delphia land. mond.

San
Atlan- Chicago. St. Minne- Kansas Dallas. Franta.
Louis. apolis. City.
cisco.

72 :!
72
72 :
72

Total.

261
261
261
2,873
2,873
2,873
2,873

3,800
3,800
3,800
3,800

1,369
1,370
1,370
1,370

10,551
10,551
10,551
10,55.1

2,791
2,791
2,791
2,791

4,745
4,754
4,753
4,753

4,060
4,060
4,060
4,060

18,500
18,500
18,500
18,500

104,500
104,477
103,976
103.926

299,248 I 43,681 18,080
259,329 24,242 10,917
263,242 25,918 8,430
265,322 27,414 9,077

8,533
7,176
6,780
7,023

5,738
1,448
1,474
1,447

49,891
22,311
22,419
22,884

15,849
8,244
5,607
7,277

2,849
1,668
1,589
1,718

9,568
6,315
7,749
7,482

7,116
4,905
4,948
4,970

15,297
14,007
13,158
13,084

484,766
367,913
368,609
374.738

165,022
160,479
148,616

2,596
2,460
1,956

4,276
2,694
2,704

32,520 13,455
33,577 11,501
30,797 10,144

4,347
4,201
4,229

3,354
2,949
4,919

2,711
2,580
1,832

3,339
3,168
3,090

275,955
263,165
239,527

11,058 9,179
10,051 12,541
9,990 12,637
8,441 10,278

125,911 36,713
128,947 34,851
111,161 35,198
94,672 26,551

18,510
12,033
10,668
7,890

17,272
17,683
16,125
13,555

17,188
18,818
20,516
13,653

39,915
39,882
39,382
39,282

j
=
•
;

7,587
7,587
7,587
7,587

4,031
4,031
4,031
4,081

26,533
23,304
16,458

12,975
11,514
10,044

684,262 109,116
542,990 81,853
490,808 81,974
309.382 61,131

20,825
21,782
21,159
13,915

1,023,425
1,007,223
953,911
762,602

160,384 42,936 22,464
140,215 49,705 22,696
138,783 45,134 22,103
112,590 37,117 20,293

18,717
22,065
20,605
18,229

533,445
734,755
725,044
738,005

157,253 33,221 16,751
166,095 33,029 16,980
169,521 33,940 17,008
172,911 33,259 16,227

7,568
7,445
8.078
8; 418

177,171
185,148
168,527
149,723

63,113 24,150 31,585
67,101 20,839 32,106
62,857 19,249 31,576
54,523 16,628 30,709

71,466 19,875
74.950 18,338
76;327 19,769
75,781 19,681

6,862
7,300
7,307
7,234

31,992 1,149,313
25,576
966,334
21,472
887,832
13,233 j 604.471

28,364 65,789
30,494 61,422
32,104 56,298
24,515 47,907

I 1,738,579
1,714,679
1,623,582
1,322,662

3,326
5,489
5,552
5,688

1,468
1,498
1,515
1,523

11,183
11,939
11,364
11,380

931,971
1,152,069
1,129,305
i;141,090
7,054,294
7,128,.543
7,209,271
7,170,027

3,819,935
3,847.609
3,921; 905
3,876,268

569,110 |286,193
597,647 293,S38
578,803 ! 301,850
573,128 1301,802

67,736
70,852
69,116
68,660

59,320
57,566
58,953
59,576

897,019
887,760
893,829
887,369

261.879
262,937
265,006
261,634

109,460 1163,404
110,214 1163,970
108,389 i165,184
109,204 1172,659

45,698
47,926
48,409
46,883

195,829
201,658
j203,274
207,141

5,375,805
5,589,587
5,600,860
5,376; 875

886,747 1362,350
903,957 376,572
887,107 380,924
858,629 372; 178

106,951
110,528
108,227
105,180

85,605
87,076
87,636
86,223

1,145,656
1,147,858
1,138,683
1,112,873

344,867
348.376
347,632
335,838

140,472 1198,315
138,353 1201,565
134.945 1202.312
133,066 209; 056

75,530
79,918
82,028
72,921

272,801 9,724,844
275,019 9.995.291
270,936 9,962.158
266,428 9,633!779

59,411 25,033
631.725 61,537 23,212
596;043 57,762 25,707
616,368 55,436 21,144

5,943
5,567
5,752
5,757

5,175
5.950
6i724
6,114

116,742
113.957
115,657
1.13,092

26,765
28,080
27,975
30.292

10,337
10,879
10,614
11,218

14,194
16,659
! 11,097
15,878

4,530
6,282
5,606
5,415

20,455
18.504
19,547
21,434

967,943
979,093
936,839
957,029

38,426 5,338
40.011 I 5,668
39,820 ! 5,526
38,820 I 5,583

3,122
2,959
2,785
2,528

4,322
4.256
4,455
4,281

1,747
1,849
1,634
1,702

5,282
£287
5.316
5; 561

201,881
214,847
211.030
208;614

835,025 190.960 94,327 135,544
830,932 f192,809 101,116 138.904
846,957 !206,079 99,490 144,597
813,351 |201,789 100,371 147,551

49,579
53,067
56,815
51,864

181,640
178,672
180,956
181,536

7,484,558
7; 444,378
7,557,422
7,360,942

104,388
112.290
111,241
109,859

14.818
15', 503
14,304
14,046

7,480
8,123
7,679
7,519

1,695
1,414
1,712
1,640

2,386
2,670
2,449
2,450

4,589.657
4,542,655
4,586,708
4,459,294

568,055
564'. 538
572,556
550,921

193,829
193.808
198,951
201,364

50,050
49,465
50,890
49,487

45,334
45,837
47,024
43,900

224,369 12,509 128.552
220,101 12,583 1129; 514
218,367 12,485 130,735
218,591 12,614 129,612

14,736 20,211
14,588 ! 20,028
14,736 20,944
14; 843 2i; 079

98.773 55,010
430,804 88', 522
388,378 65,545
377,801 49,999

8,101
6,462
10,160 j 12,388
5,820 ; 9,118
3.393 ! 7,532

17,466
33,776
25,893
21,009

164,294
164,762
165,468
167; 642

65,067
65,208
64,479
I 64,587

18,963
19,154
19.301
19; 433

9,059
8,918
8.944
8,968

10.616
3.171 10!284
3; 165 10;349
3,184 10,106

704,632
701.365
700,905
704,253

39,908
98,489
83,764
71,164

I 25,492
! 42;224
I 28,328
20J220

7,419
4.150
3,403
1,978

15,263
19,490
10,764

8.571 11,243
10;771 14,702
6,452 7,565
3,390 4,809

339.104
852,551
700,683
631,904

695

FEDERAL RESERVE BULLETIN.

JULY 1,1919.

Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve Bank
cities and in Federal Reserve Branch cities, as at close of business on Fridays from May 29 to June 20,1919—Continued.
3.

MEMBER BANKS IN F E D E R A L R E S E R V E BRANCH CITIES.
[In thousands of dollars, i. e., 000 omitted.]

I
New
York.i
Number of reporting banks:
May 29
June 6
June 13
June 20
United States bonds to secure circulation:
May 29
June 6
June 13
June 20
Other United States bonds, including
Libertv bonds:
May "29
June 6
June 13
Juno 20
United States Victory notes:
May 29
June 6
June 13
June 20
United States certificates of indebtedness:
May 29
June 0
June 13
June 20
Total United States securities owned:
May 29
June 6
June 13
June 20
Loans secured by United States bonds,
Victory notes, and certificates:
May '29
June 6
June 13
June 20
All other loans and investments:
May 29
June 6
June 13
June 20
Total loans and investments:
May 29
June 6
June 13
June 20
Reserve with Federal Reserve Bank:
May 29
June 6
June 13
June 20
Cash in vault:
May 29
Juno 6
June 13
June 20
Net demand deposits on which reserve is
computed:
May 29
June 6
June 13
,
June 20
,
Time deposits:
May 29
June 6
June 13
June 20
Government deposits:
May 29....."
June 6
June 13
June 20
1 Buffalo.
2 Pittsburgh and Cincinnati.
Baltimore.

8




Cleveland.*

3
4
5
5

38

1,500
1,599
1,599
1,600

Richmond. 3

Atlanta. 4 Chicago.5

St.
Louis.e

Kansas
City.'

19
19
19
19

21
21
21
21

12
12
12
12

17
17
17
17

5,091
5,391
5,411
5,411

5,185
5,185
5,085
5,085

1,805
1,805
1,805
1,805

5,205
5,155
5,155
5,155

4,487
4,487
4,487
4,487

8,398
3,735
4,106
3,773

51,890
43,321
41,563
41,935

11,264
9,372
9,223
9,048

17,801
10,345
10,035
10,018

24,587
15,838
15,491
15,667

12,115
7,388
6,964
6,815

9,986
7,634
6,813
6,511

15,707
9,594
9,371

32,976
31,360
29,583

3,370
3,480
3,140

10,954
9,800
9,550

17,962
17,423
16,330

8,112
7,074
6,472

2,253
3,622
2,972

10,933
9,918
10,698
8,726

77,511
84,348
73,800
52,306

32,679
40,962
40,337
33,471

36,885
35,101
34,201
28,651

64,528
64,335
71,305
62,998

15,850
13,994
14,572
11,562

20,831
30,959
25,997
23,470

153,017
184,672
170,750
147,851

49,034
59,095
58,451
51,070

59,871
61,585
59,121
53,304

90,920
99,940
106,024
96,800

6,980
7,479
10,549
10,462

66,330
67,227
68.578
66,627

13,183
12,011
12,690
12,522

13.358
13;292
12,833
13,443

62,305
63,867
75,384
73,970

520,383
527,510
530,959
520,369

119,725
114,531
115,924
117,455

90,116
102,305
111,930
107,902

739,730
779,409
770,287
734,847

4,926
5,392
6,675
6,254

San
Francisco.s

Total.

17
17
17
17

23,616
24,027
24,027
24,027

Dallas.*

162
162
163
163
1,255
1,255
1,255 j
1,255 !

8,485
8,485
8,485
8,485

56,629
57,389
57,309
57,310

1,932
2,073 |
1,981 !
2,114 !

17,259
15,570
14,968
14,833

155,232
115,276
111,144
110,714

94

6,241
6,395
5,431

97,673
88,846
82,943

18,027
15,858
15,789
13,850

5,885
5,539
5,583
5,360

45,626
39,825
39,421
31,102

307,924
309,880
305,706
248,026

33,170
34,649
33,765
30,004

32,500
30,232
30,711
27,820

9,072
8,965 j
8,917
8,823 |

71,370
70,121
69,269
59,851

519,785
580,218
563,005
498,993

9,939
10,620
10.617
13;383

6,214
6,720
6,884
6,593

7,290
7,591
6,531
6,657

449
752
731
729

7,76-1
7,585
7,082
7,053

131,507
133,277
136,495
137,469

163,525
162,252
166,681
168,617

263,448
261,198
276,363
273,485

107,996
108,114
107,806
106,892

151,814
153,390
151,799
155,871

14,333
14,283
14,4.75
14,741

217,546
217,801
220,253
221,787

1,621,075
1,622,946
1,659,644
1,653,187

181.942
185', 637
187.065
18L047

236,754
237,129
238,635
235,364

364,307
371,758
393,004
383,668

147,380
149,483
148,455
143,489

191,604
191,213
189,041
190,348

23,854
24.000
24,123
24,293

296,680
295,507
296,601
288,691

2,272,367
2,336,441
2,359,144
2,289,649

49,949
51,535
48,290
43,193

12,229
12,547
12,607
12,141

16,559
16,977
14,734
15,603

25,090
23,303
24,521
24,797

9,653
10,754
9,918
9,710

17,324
16,773
13,579
14,104

1,4.61
1,642
1,496
1,096

21,866
22,460
21,928
22,160

159,057
161,383
153,748
149,058

1,294
1,481
1,807
1,654

14,547
16,645
14,382
16,040

4,476
5,931
5,642
5,854

6,016
6,454
6,275
6,003

12,001
12,425
26,266
12,383

4,039
3,855
3,688
3,792

5,393
5,539
5,621
5,570

519
648
640
737

7,220
8,008
7,143
6,965

55,505
60,986
71,464
58,998

50,570
53,467
69,684
64,645

460.401
439'. 363
440;135
435,123

106,464
102,718
107,450
103,746

137,570
140,728
141,379
140,663

180,681
174,849
185,004
176,464

83,873
86,080
86,070
84,131

133,579
135,123
135,472
133,423

10,874
11,214
11,364
10,877

172,235
172,407
176,425
171,828

1,336,247
1,316,039
1,352,983
1,320,900

13,626
13,489
13,665
13,192

92,951
92,451
93.068
92,612

14,793
14,966
14.815
16,383

61,863
6,0887
61,334
61,254

I
!
!
j

172,625
173,487
173,739
173,066

25,631
25,587
25,477
25,655

37,771
38,695
38,863
38,899

5,918
6,027
6,024
6.064

93,588
93,450
92,916
93,126

.518,769
519,039
519,901
520,251

7,601
17,522
13.654
10,707

34,673
87,838
71,129
58,857

8,919
20,583
16,223
14,705

16,766
26,613
13;985
10,715

j
i
I
j

10,552
15,204
27,315
25,258

8,571
11,815
7,267
5/145

5,294
6,826
5,180
3,879

646
592
236

4,431
6,379
2,340
2,011

97. 456
193', 372
157,329
131,277

* New Orleans, Jacksonville, and Birmingham.
5 Detroit.
e Louisville, Memphis, and Little Rock.

8

!

7 Omaha and Denver.
s El Paso.
9 Spokane, Portland, Seattle, and Salt Lake City.

696

FEDERAL RESERVE BULLETIN.

JULY 1, 1919.

IMPORTS AND EXPORTS OF GOLD AND SILVER.
Gold imports into and exports from the United States.
[In thousands of dollars; i. e., 000 omitted.]
10 davs ending May 20,
1919.

10 davs end- 10 days ending May 31, ing June 10,
1919.
1919.

Total since
Jan. 1, 1919.

Total Jan. 1,
1918, to
June 7, 1918.

19,151
10

7,277
26,505
10,220

5,545
6,351
6,629
142

19,692

44,002

18,667

3.386
15,303

IMPORTS.

216
16

Total.

423
61

232

Ore and base bullion
Bullion refined.
United States coin... .
I? ore ign coin

484

531

EXPORTS.

Domestic:
Ore and base bullion
United States mint or assay office bars
Bullion, refined
Coin

696

Total exports

200

353

208

353
2

14,346 ;
43

19,098
322

696

Total
Foreign coin

14
277
1 !
14,054

696

i-

208

355

14,389

19,420

8

-

48
3R1

Excess of gold imports over exports since Jan. 1, 1919, $29;613,000.
Excess of gold imports over exports since Aug. 1, 1914, §1,101,019,000.

Silver imports into and exports from the United States.
[In thousands of dollars; i. e., 000 omitted.]
10 days
ending
May 31,
1919.

10 days
ending
May 20,
1919.

Total,
Jan. 1 to
May 31,
1919.

Total,
Jan. 1 to
Mav 31,
1918.

10 days,
ending
June 10,
1919.

Total,
since Jan. 1,
1919.

IMPORTS.

1,166

28,254

14
86

136
23
231

4.246
2,719

1,428

4,227

35,511

4

Total

3,837

1(52

Ore and base bullion
United States mint or assay office b a r s . . . .
Bullion, refined
United States coin . . . .
Foreign coin

6

357
4,056

292

12,312
46
15,942

2,260

30,514
4,528

2,713

282
20
242

31,340

2,804

38,315

19,729
58,854

1,896

327

312

2,961

EXPORTS.

Domestic:
Ore and base bullion
United States mint or assay office bars
Bullion, refined
Coin
Total
Foreign:
Bullion, refined . . . .
Coin
Total
Total exports .

.

.

325

937

198

69,599
52,996
1,474

929

4,738

121,979

79,526

2,094

124,073

430
10

582
204

5,669
1,849

1,858
3,832

51
79

5,720
1,928

440

786

7,518

5,690

130

7,648

1,369

5,524

129,497

85,216

2,224

131,721

Excess of silver exports over imports since Jan. 1, 1919, $93,406,000.
Excess of silver exports over imports since Aug. 1,1914, $373,166,000.




4

69,599
51,100
1,276

761
168

697

FEDERAL, RESERVE BULLETIN.

JULY 1, 1919.

OPERATION OF THE FEDERAL RESERVE CLEARING SYSTEM MAY 16 TO JUNE 15, 1919.
Items drawn on banks in
Federal Reserve city
(daily average).

Items drawn on banks in
district outside Federal
Reserve city (daily average).

Total items drawn on banks
in own Federal Reserve
district (daily average).

Number.

Number.

Number.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total:
May 16 to June 15,1919.
Apr. 16 to May 15,1919 .
Mar. 16 to Apr. 15,1919.
May 16 to June 15,1918.

18,594
20,498
13,263
5,724
2.558
?,', 477
17,855
5.858
5.377
5,896
1,544
2', 244
132,688
129,378
138,8.17
51,055

Amount.

88,449
133,852
48,426
70,585
53,184
28,793
73,886
42,648
25,146
67.401
26', 477 i
37,610 i

$12,511, 577 j
. 71,519, 188 j
6,278, 921 I
23,940; 665 i
15.340. 266
7', 26?; 595 I
12', 605, 000 !i
7,988,,416
2,439: 838 :
13,973; 894 !
9.873 ,561 I
7;597; 023 !

107,043
154,350
91.689
76', 309
55,742
32', 270
91,741
48,506
30,5?3
73;097
28,021
39,854

535,918,928
138,591,050
34,537,439
30,995,134
21,409,614
9,627,505
40,072,000
17,045,107
11,605,653
24,301,974
12,303,936
11,517,177

196 594,573
176; 737,129
197; 456,121
164, 539,000

696,457
665.641
686.512
295;056

191,330,944
163.0a7.746
167', 142,262
113;407,619

829,145 !
795,019
825,329
346,111

387,925.51.7
339,804; 875
364,598,383
277,946,619




Items handled by both
parent banks and
branches (daily average).

Number.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total:
May 16 to June 15, 1919.
Apf. 16 to May 15, 1919.
Mar. 16 to Apr. 15, 1919.
May 16 to June 15, 1918.

Number

11,096
§10,934,298 I
32,312
18,061,461 '
21,769
8,554,329 |
3,160
3,366.553 I
7,450 i
5,821,341
3,409 i
3,367,443
5,703 I
1,066,000
805 i
520,997
1,502 !
1,522,078
6,842 I
4,975,005
4,081 i
2,182,035 !
1,220
95,541
101,329
54,132

61,906,814
57,858,264
59,610,264
55,703,310

Amount.

$23. 407,351
67' 071,862
258,518
% 054,469
069,348
364,910
467,000
056,691
165,815
328.080
430,375
920,154

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

Amount.

i
I
j
i

Items drawn on the
Treasurer
of the
United States (daily
average).
;

Amount.

j
i
|
!

j
Incorpoi.
Number rated banks
I Number
nonother th an
i member member
mutual
1 banks in banks on
savings,
district.
par list.
banks not
on par list.

2,089,358
243,594
2,317,905

8,784
45,904
8,153
7,542 i
2,960 !
4,894
14,407
7,097
1.352
7,349
4,081 I
5,725 j

SI, 439,061
23,130,675
2,1?5,1.64
1,558,411
495,221
1,089,825
2,028,000
795,0i;3
195,178
444,791
2,182,035
12,833,215

429
734
667
825
572
424
1,351
526
882
1.002
'744
669

318
3*U
833
339
329
3.080
1,483
1,307
2,279
301
911

11,626,331
7,613,957
9,029,805
12,355,115

118,248 !
157,820
137,228
77,750

48,316,599
45,278,441
48,802,574
39,054,003

8,825
8,786
8,758
8,165

11,782
11,288
11,060
9,710

2,371

$1,426,455

1,474
463
3,917
365
882

2,138,539
983,994
1,699,434
344,000
383,052

3,637
1,416
3,735
18,260
15,798
16,958
7,623

46
215
1,083
1,247
1,088
1,150
1,544
966
817
153
8,309
8,762
9,003

698

FEDERAL. RESERVE BULLETIN.

JULY 1,

1919.

Estimated general stock of money, money held by Treasury, and by the Federal Reserve system, and all other money in the
United States. June 1. 1919.
Amount per
Held outside capita outside
Held in the
the
j General stock United States Held by or for States United
the
Federal ReTreasury States United
Treasury
| of money in the Treasury as
serve banks
and Federal
and the Fed| United States. assets of the 1
and agents.
Reserve syseral Reserve
Government.
tem.
system.
Gold coin2
Gold certificates
Standard silver dollars
Silver certificates
Subsidiary silver
Treasury notes of 1890
United States notes
Federal Reserve notes
Federal Reserve bank notes
National-bank notes

!

12,453,649
43,239,078
19,253,416
60,459,406
561,315,890
553,979,534
550,628,454
545,695,945
489,831,726
454,948,160
380,246,203
356,124,750
277,043,358
258,198,442
279,079,137

2,221,850,525
2,215,178,577
2,195,151,766
2,169,183,676
2,252,757,560
2,220,705,767
2,084,774,897
2,018,361,825
1,723,570,291
952,934,705
849,661,792

4,808,912,577
4,845,591,149
4,840,972,635
4,851,420,303
4,869,039,524
5,105,139,679
4,925,987,177
4.367,739,209
4,255,584,622
4.100,976,125
3; 916,472,418

SI,539,887,136
445,204,280

45,794,389
4,897,624
3 4,081,789

'"""243*679*762"

;
346,681,016
i 2,702,716,345
i
175,220,320
! 722,764,920

Total:
June 1,1919
May 1,1919
Apr. 1,1919
Mar. 1,1919
Feb. 1,1919
Jan. 1,1919
Oct. 1,1918
July 1,1918
Jan. 1,1918
Apr. 4,1917
Feb. 1,1917

4 57,850,495
153,299,985
7,056,264
9,572,952

$389,647,067
349,497,981
81,784,757
174,744,228
227,283,316
1,757,932
276,376,872
2,506,177,282
148,910,640
652,732,562

§367,801,295

$3,092,037,699
"""'368*978*936'

'
!
:
1
1
•

7,592,078,992
7,614,749,260
7,586,752,855
7,566,299,924
7,611,628,810
7,780,793,606
7,391,008,277
6,742,225,784
:
6,256,198,271
5,312,109,272
j 5,045,213,347

544.75
45.15
45.17
45.33
45.56
47.83
46.34
41.31
40.53
39.54 '
37.88

1
Includes reserve funds against issues of United States notes and Treasury notes of 1890 and redemption funds held against issues of nationalbank notes, Federal Reserve notes, and Federal Reserve Bank notes.
2
Includes balances in gold settlement fund standing to the credit of the Federal Reserve Banks and agents.
3 Includes standard silver dollars.
* Includes Treasury notes of 1890.

DISCOUNT RATES.
Discount rates of each Federal Reserve Bank approved by the Federal Reserve Board up to June 30, 1919.
Discounts other than trade acceptances.

Trade acceptances.

Secured by U. S. Government
war obligations.

Federal Reserve Bank.

Otherwise secured, also unsecured,
maturing within—

Maturing within 15
days, including member
banks' collateral notes.
Maturing
within
16 to 90
days.

Secured by Secured by
U. S. certi- Liberty
ficates of bonds and
indebtedVictory
ness.
notes.
Boston
New York 1....
Philadelphia...
Cleveland
,
Richmond
Atlanta
,
Chicago
St. Louis
Minneapolis
Kansas City...
Dallas
San Francisco.
1

15 days, including
member
banks'
collateral
notes.

16 to 60
days.

61 to 90
days.

Maturing within—

91 to 180
days (agricultural and
live-stock
paper).

4
4
4
4
4
4
34
4
4

I

Rates for discounted bankers' acceptances maturing within 15 days, 4 per cent; within 16 to 60 days, 4J per cent; within 61 to 90 days, 4J per

cent.
« Rate of 4 per cent on paper secured by fourth Liberty loan bonds where paper rediscounted has been taken by discounting member banks:
at rates not exceeding interest rate on bonds.
3
Applies only to member banks' collateral notes; rate of 4J per cent on customers' paper.
1
Rate of 4J per cent on member banks' collateral notes.
NOTE 1.—Acceptances purchased in open market, minimum rate 4 per cent.
NOTE 2.—Rates on paper secured by War Finance Corporation bonds, 1 per cent higher than on commercial paper of corresponding maturity..
NOTE 3.—Whenever application is made by member banks for renewal of la-day paper the Federal Reserve Banks may charge a rate not exceeding that for 90-day paper of the same class.




INDEX.
Acceptances:
Banks granted authority to accept up to 100 per
cent of capital and surplus
650
Holdings during May, distributed by classes
of accepting institutions
684
Purchases during May, also average rates and
maturities
*
,
683
Purchases during three months ending May 31,
also average rates and maturities
685
Agricultural paper held on last Friday in May
683
Agricultural products, production and exports,
1909-1918...
636
Arizona, amendments to banking laws of
658
Arkansas, amendments to banking laws of
658
Attorney general of Missouri, opinion of, relative
to deposit of securities by national banks exercising trust powers
655
Austro-Hungarian Bank, comparative statement of
condition, July, 1914, December, 1918, and April,
1919, with leading banks of issue
'
648
Balance of trade
1. 614
Bank transactions, debits to deposit account
661-663
Banking laws, State, amendments to
658-660
Banking position
618
Branches of American concerns in foreign countries,
report of committee of experts relative to
637
Buenos Aires banks, statement showing condition
of.
639
Business and financial conditions during June
620
Special reports by Federal Reserve agents
624
Charters issued to national banks during June
650
Chart showing condition of the Netherlands Bank,
1914-J919
645
Check clearing system, operation of
697
Clearing-house bank debits
661-663
Coin, bullion, and currency, licenses issued for export of
".
640
Collateral notes held on last Friday in May
683
Commercial failures reported
650
Conferences of Board with Federal Advisory Council •
and representatives of corporations engaged in
foreign banking
618
Cost of living in New York
632
Debits to deposit account, weekly figures of
661-663
Denmark. Copenhagen National Bank, comparative
statement of condition, July, 1914, December.
1918, and April. 1919, with leading banks of issue. 649
Discount and interest rates prevailing in various
centers
667-669
Discount operations:
May, by classes of paper
680-682
Three months ending May 31, by rates charged. 684
Member banks, number of, accommodated in
May
680
Discount rates in effect
698
Earning assets of Federal reserve banks, average
amount of each class held during May
682
Embargo on gold, termination of
\
615
England, Bank of, comparative statement, July,
1914, December, 1918, and May, 1919, with leading banks of issue
648
Errata, June Bulletin
650




Export trade:
Financing of
611
Individual corporations for financing
611
Scope of
612
Failures, commercial, reported
650
Federal Advisory Council, conference of executive
committee of, with board, regarding export
financing
618
Federal reserve banks:
Comparative statement of condition, December,
1914, December, 1918, and June, 1919, with.
leading foreign banks of issue
648
Resources and liabilities of
686-689
Federal reserve note account of Federal reserve
banks and agents
690
Fiduciary powers:
Deposit of securities by national banks exercising trust powers in Missouri, opinion by attorney general of Missouri relative to
652
Granted to national banks during June
650
Foreign countries:
Branches of American concerns in, report of
committee of experts on
637
Buenos Aires banks, statement showing condition of
639
Comparative statement of condition of leading
banks of issue
648
Netherlands Bank and Java Bank, operations of,
during the war
641-647
Foreign exchange:
Control over, termination of
615
Quotations at Amsterdam
646
Regulations issued by Division of Foreign Exchange relative to
652
Foreign trade financing
615
France, Bank of, comparative statement of condition. July, 1914, December, 1918, and May,
1919, with leading banks of issue
648
German Reichsbank, comparative statement of condition, July, 1914, December, 1918, and May,
1919, with leading banks of issue
648
Gold:
Embargo on, termination of
615
Imports and exports—
June
618, 696
September, 1917-May, 1919
616
Licenses, number and amounts of, issued by
the Board for export of
". 640
Housing and living conditions in New York
632
Houston branch of Federal reserve bank of Dallas,
directors named
619
Imports and exports:
Agricultural products
636
Gold—
During June
618,696
September 1, 1917-May 31, 1919
616
Merchandise, September, 1917-May, 1919
617
Silver—
June
696
September, 1917-May, 1919
616
Inflation of currency
614
i

INDEX.
Page.

Interest and discount rates prevailing in various
centers
667-669
Investment operations of the Federal reserve banks
during May
681
Italy, Bank of, comparative statement of condition,
December, 1914, December, 1918, and April, 1919,
with leading banks of issue
648
Japan, Bank of, comparative statement of condition,
June, 1914, December, 1918, and May, 1919, with
leading banks of issue
649
Java Bank:
Comparative statement of condition, March,
1914, December, 1918, and April, 1919, with
leading banks of issue
649
Operations of, during the war
641
Law department:
Deposits with a Federal reserve bank from the
savings department of a trust company member bank to count as reserve
".
654
Time certificates of deposit which become payable within 30 days
655
Deposit of securities by national banks exercising trust powers in Missouri
655
Amendments to banking laws of Arizona, Arkansas, Nevada, and Utah
658
Live-stock paper held on last Friday in May
683
Maturities:
A verage of acceptances purchased during May. - 683
Average of acceptances purchased during three
months ending May 31
685
Average of bills discounted during May
682
Average of bills discounted during three
months ending May 3 1 . .
684
Of the several classes of earning assets each
Friday
689
Member banks:
Number of, discounting during May
680
Number of, in each district
680
Resources and liabilities of, in selected cities. 692-695
Money:
Gall rates in New York
'
617
Stock of, in the United States
698
National banks:
Charters issued to, during June
650
Deposit of securities by banks exercising trust
powers, opinion of attorney general of Missouri regarding
655
Fiduciary powers granted to
650
Netherlands, Bank of:
Comparative statement of condition, July,
1914, December, 1918, and May, 1919, with
leading banks of issue
649
Operations of, during the war
641
Chart showing
646




Nevada, amendments to banking laws of
659
Norges Bank, Norway, comparative statement of
condition, July, 1914, December, 1918, and April,
191.9, with leading banks of issue.
648
New York City, living and housing conditions i n . .
632
Par list, number of banks on
...
679
Physical volume of trade
670-679
Prices and exports
613
Prices, wholesale, in the United States
664-666
Private enterprise in export
financing
611
"Readily marketable staples," definition of
652
Reserve, deposits with a Federal reserve bank from
the savings department of a trust company to
count as
652, 654
Resources and liabilities:
Federal reserve banks
686-689
Member banks in selected cities
692-695
Review of the month
611
Rulings of the Federal Reserve Board:
Deposits with a Federal reserve bank from the
savings department of a trust company member bank to count as reserve
652
Time certificates of deposit which become payable within 30 days
".. 652
Definition of " readily marketable staples "
652
Silver, imports and exports of:
June
696
September, 1917-May, 1918
616
licenses, number and amounts of, issued by
the board for export of
\
640
Spain, Bank of. comparative statement of condition.
July, 1914, December, 1918, and May, 1919, with
leading banks of issue
649
Speculation on New York Stock Exchange
617
State banking laws, amendments to
658-660
State banks and trust companies admitted to
system during June.
649
Sweden Riksbank, comparative statement of condition, Julv, 1914, December, 1918, and May, 1919,
with leading banks of issue
648
Swiss National Bank, comparative statement of
condition, July, 1914, December, 1918. and May,
1919, with leading banks of issue
/..
649
Time certificates of deposit payable within 30 days
as demand deposits
652
Trade, physical volume of
670-679
Trust companies. (See State banks and trust companies.)
Trust powers. (See Fiduciary powers.)
Utah, amendment to banking laws of
660
War, effect of, on wealth of the United States, statement by Secretary of Agriculture
635
Wheat, production and exports, 1909-1919
636
Wholesale prices in the United States
664-666 .

c


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102