Full text of Federal Reserve Bulletin : July 1919
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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