Full text of Federal Reserve Bulletin : July 1934
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FEDERAL RESERVE
BULLETIN
JULY 1934
ISSUED BY THE
FEDERAL RESERVE BOARD
AT WASHINGTON
Recent Banking Legislation
Annual Report of the Netherlands Bank
UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934
FEDERAL RESERVE BOARD
Ex officio members:
HENRY MORGENTHAU, Jr.,
Secretary of the Treasury, Chairman,
J. F. T. O'CONNOR,
Comptroller of the Currency.
H. WARNER MARTIN, Assistant to the Governor.
CHESTER MORRILL, Secretary.
EUGENE R. BLACK, Governor.
CHARLES S. HAMLIN.
ADOLPH C. MILLER.
GEORGE R. JAMES.
J. J. THOMAS.
M. S. SZYMCZAK.
E. A. GOLDENWEISER, Directort Division of Research
and Statistics.
J. C. NOELL, Assistant Secretary.
L. P. BETHEA, Assistant Secretary.
S. R. CARPENTER, Assistant Secretary.
CARL E. PARRY, Assistant Director, Division[of Research
and Statistics.
WALTER WYATT, General Counsel.
GEORGE B. VEST, Assistant Counsel.
J. R. VAN FOSSEN, Assistant Chief, Division of Bank
Operations.
O. E. FOULK, Fiscal Agent.
E. L. SMEAD, Chief, Division of Bank Operations.
LEO H. PAULGER, Chief, Division of Examinations.
FRANK J. DRINNEN, Federal Reserve Examiner.
JOSEPHINE E. LALLY, Deputy Fiscal Agent.
FEDERAL ADVISORY COUNCIL
District no.
District no.
District no.
District no.
District no.
District no.
District no.
District no.
District no.
District no.
District no.
District no.
1 (BOSTON)
2 ( N E W YORK)
3 (PHILADELPHIA)
4 (CLEVELAND)
5 (RICHMOND)
6 (ATLANTA)
7 (CHICAGO)
8 (ST. LOUIS)
9 (MINNEAPOLIS)
10 (KANSAS CITY)
11 (DALLAS)
12 (SAN FRANCISCO)
THOMAS M. STEELE.
WALTER E. FREW.
HOWARD A. LOEB, Vice President.
H. C. MCELDOWNEY.
HOWARD BRUCE.
H. LANE YOUNG.
SOLOMON A. SMITH.
WALTER W. SMITH, President.
THEODORE WOLD.
W. T. KEMPER.
JOSEPH H. FROST,
M. A. ARNOLD.
WALTER LICHTENSTEIN, Secretary
OFFICERS OF FEDERAL RESERVE BANKS
Federal Reserve Bank
of-
Chairman
F. H. Curtiss
J. H. Case
Boston
New York
Philadelphia
Deputy governor
Governor
_ W. W. Paddock
W. R. Burgess
J. E. Crane
W. S. Logan
L. R. Rounds
L . F . Sailer
R. M. Gidney.
W. H. Hutt
R. A. Young
G. L. Harrison
__ R. L. Austin
_ G. W. Norris
C. A. Mcllhenny
Cleveland
Richmond.
_
L. B. Williams
E. R. Fancher
W. W. Hoxton
M. J. Fleming
- . . G. J. Seay
Atlanta
O^car Newton
W. S. Johns «
Chicago
_. E. M. Stevens
G J. Schaller
.
St. Louis
J. S. Wood
W. McC. Martin
Minneapolis
J. N. Peyton
W. B. Geery
Kansas City
M. L. McClure
Dallas
C.C.Walsh
G. H. Hamilton
San Francisco
1
J U Calkins
Assistant deputy governor.
« Controller.
W. WTillett.
C. H. Coe.1
J. W. Jones.i
W. B. Matteson.i
J. M. Rice.i
Allan Sproul.*
L. W. Knoke.i
C. A. Mcllhenny.
~W T TlaT7i« 1
L. E. Donaldson.i
W. G. McCreedy.»
H. F. Strater.
G. H. Keesee.
J. S. Walden, Jr.»
M. W. Bell.
W. S. McLarin, Jr.i
W. H. Snyder.«
C. R. McKay
W. 0 . Bachman.i
H. P. Preston
0. J. Netterstrom.i
J. H. Dillard
A. T. Sihier.i 1
E. A. Delaney.
A. L. Olson.*
0. M. Attebery
_ S. F. Gilmore.1
A. H. Haill.i
J. G. McConkey
F. N. Hall.i
G. 0. Hollocher.1
0. C. PhiUips.J
H. I. Ziemer. 8
Harry Yaeger. _
F. 0. Dunlop.
TT T 7ipmpr
J. W. Helm.
C. A. Worthington
C. A. Peple
R. H. Broaddus
H. F. Connifl
T
_ B. A. McKinney
Cashier
W
TTOITTI
R.R.Gilbert
R. B. Coleman
W A Day
Ira Clerk
_
« Acting governor.
Fred Harris.
W. 0. Ford.i
W M Hale
• Assistant to the governor.
MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS
Federal Reserve Bank o—
f
New York:
Buffalo branch...
Cleveland:
Cincinnati branch
Pittsburgh branch
Richmond:
Baltimore branch
Charlotte branch
Atlanta:
New Orleans branch...
Jacksonville branch
Birmingham branch.__
Nashville branch
Chicago:
Detroit branch
St. Louis:
Louisville branch
_
Memphis branch
Little Rock branch
Managing director
R. M. O'Hara.
C. F. McCombs.
J. C. Nevin.
Hugh Leach.
W. T. Clements.
Marcus Walker.
Hugh Foster.
J. H. Frye.
J. B. Fort, Jr.
R. H. Buss
J. T. Moore.
W. H. Glasgow.
A. F. Bailey.
Federal Reserve Bank o—
f
Minneapolis:
Helena branch
Kansas City:
Omaha branch
Denver branch
Oklahoma City branch..
Dallas:
El Paso branch.Houston branch
San Antonio branch
San Francisco:
Los Angeles branch
Portland branch
Salt Lake City branch..
Seattle branch
Spokane branch
Managing director
,
R. E. Towle.
:
L. H. Earhart.
J. E. Olson.
C. E. Daniel.
i
J. L. Hermann.
W. D. Gentry.
M. Crump.
i
W. N. Ambrose.
R. B. West.
W. L. Partner.
C. R. Shaw.
D. L Davis.
i
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The FEDERAL RESERVE BULLETIN is the Board's medium of communication with member
banks of the Federal Reserve System and is the only official organ or periodical publication of
the Board. The BULLETIN will be sent to all member banks without charge. To others the
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in
TABLE OF CONTENTS
Page
Review of the month—Recent banking legislation
429
Act relating to direct loans for industrial purposes
430
Silver Purchase Act of 1934
435
Annual report of the Netherlands Bank
463
Cuban currency legislation
468
National summary of business conditions
447
Financial, industrial, and commercial statistics:
Reserve bank credit, gold stock, money in circulation, etc
448-451
Member and nonmember bank credit:
All banks in the United States
454
All member banks
452, 453, 496, 497
Weekly reporting member banks in leading cities
455, 498
Brokers' loans
455
Acceptances and commercial paper
456
Discount rates and money rates
457
Treasury finance
458
Reconstruction Finance Corporation—Loans, subscriptions, and allocations
459
Security prices, bond yields, and security issues
460
Production, employment, car loadings, and commodity prices
461, 500-504
Merchandise exports and imports
462
Department stores—Indexes of sales and stocks
462
Freight-car loadings, by classes
462
Financial statistics for foreign countries:
Gold reserves of central banks and governments
472
Gold production
473
Gold movements
473-475
Government note issues and reserves
476
Bank for International Settlements
476
Central banks
477-479
Commercial banks
480
Discount rates of central banks
481
Money rates
481
Foreign exchange rates
482
Price movements:
Wholesale prices
483
Retail food prices and cost of living
484
Security prices
484
Law department:
Rulings of the Federal Reserve Board:
Discounts for individuals, partnerships, and corporations
485
Permits to member banks relating to participation in underwriting and dealing in municipal
and other securities
485
Securities company within provisions of sections 20 and 32 of Banking Act of 1933
485
Membership in Federal Reserve System of trust companies doing substantially no banking
business
486
Act extending for 1 year the temporary plan for deposit insurance, etc
'
486
Act amending Federal Reserve Act relative to loans made by national banks secured by real estate-- 488
Regulation S—Discounts, purchases, loans, and commitments by Federal Reserve banks to provide
working capital for established industrial or commercial businesses
488
Federal Reserve statistics by districts, etc.:
Banking and financial statistics
493-499
Industrial and commercial statistics
500-505
IV
FEDERAL RESERVE BULLETIN
VOL. 20
JULY 1934
REVIEW OF THE MONTH
In the field of currency and banking the most
important developments in June related to new
Federal legislation, including an act to provide
for loans by Federal Reserve banks and by the
Reconstruction Finance Corporation to industrial and commercial enterprises, the Silver
Purchase Act of 1934, an act providing for the
extension for a year of the temporary plan for
deposit insurance, the National Housing Act,
and the Securities Exchange Act of 1934.
The text of the Securities Exchange Act of
1934 appeared in the BULLETIN for June, and
the other acts and important documents relating to them are printed in this issue, with the
exception of the National Housing Act with
respect to which only one section that amends
the Federal Reserve Act is reproduced.
By an act of Congress approved by the
President on June 19, 1934, the Federal Reserve
Loans to
banks were authorized to make
comme^
^ans to supply working capital
enterprises
to industrial and commercial
enterprises within the prescribed limitations.
The text of this act is printed below and regulations issued by the Board under the law are
printed on pages 430-434.
The Federal Reserve Board held conferences
with the chairmen and governors of the 12
Reserve banks, and on June 28, 1934, the Board
issued the following statement to the press:
"The Federal Reserve Board has prepared,
approved, and issues herewith Regulation S,
series of 1934, which deals with loans by Federal Reserve banks for industrial purposes.
The regulation analyzes the provisions of the
law and prescribes the procedure to be followed
in applying for such loans. The regulation has
been considered at a conference of the Board
No. 7
with the chairmen and governors of the 12
Federal Reserve banks and has been approved
by that conference.
"The need for this character of loans has
become increasingly apparent in recent months.
Many small industrial establishments have
suffered severe capital losses during the depression and are now short of working capital. A
survey made by the Federal Reserve Board
through the Reserve banks and the chambers
of commerce showed that this condition is
widespread and is not being met by existing
facilities. Small industries find it difficult at
present to obtain their requirements of working
capital through the capital market, while commercial banks and other financial institutions,
in many cases, are hesitant about undertaking
on their single responsibility the risks involved
in making relatively long-time loans for working capital purposes.
"Recognizing the need of these industrial and
commercial businesses for additional working
capital to enable them to continue or resume
normal operations and to maintain employment
or provide additional employment, Congress
has granted the Federal Reserve banks broad
powers to enable them to provide such working
capital, either through the medium of other
banks, trust companies, and other financing
institutions or, in exceptional circumstances,
directly to such commercial and industrial businesses. It is believed that the facilities thus
afforded will aid in the recovery of business, the
increase of employment, and the general betterment of conditions throughout the country.
"The Federal Reserve banks are authorized
to have outstanding such loans in an aggregate
amount not exceeding approximately $280,000,000, but additional loans may be made out
429
430
FEDERAL RESERVE
of funds received through repayment of outstanding loans, so that the aggregate amount of
credit to be extended under this authority may
be several times as large as the initial amount.
These loans are to be made by the Federal
Reserve banks in their own districts, and applications for such loans should be directed to
these banks. The Federal Reserve Board in its
regulation gives authority to all Federal Reserve banks to make such loans without referring them to Washington for approval.
"In making these loans the Federal Reserve
banks will have the aid of advisory committees
consisting of five active industrialists resident
in the district. Progress has been made in the
selection of such committees, and the banks are
now ready to consider such loans.
"The Reserve banks are authorized to make
loans or advances or commitments for such
loans or advances to financing institutions,
which in turn advance the funds for working
capital purposes to established industrial or
commercial enterprises. Maturity of the loans
must not exceed 5 years and the financing institutions must assume at least 20 percent of
the risk of any loss that may occur.
"In exceptional circumstances the Federal
Reserve banks may also make direct advances
to industrial or commercial undertakings that
are not able to obtain the required funds from
usual banking sources on reasonable terms. It
is expected, however, that the Federal Reserve
banks will not compete with local banks, but
rather will assist and cooperate with them in
meeting local requirements for working capital.
The Federal Reserve Board and the Federal
Reserve banks are confident that the banks of
the country will join with the System in this
endeavor to hasten economic recovery.
"At the recent conference the governors and
chairmen of the 12 Reserve banks all reported
that there was need for this class of loans in
their districts and undertook to set up promptly
the necessary machinery for considering applications for such loans and to carry out vigorously the purposes of this additional power of
the System to serve commerce and industry.
The Reserve banks will undertake, through the
BULLETIN
JULY
1934
advisory committees of industrialists, to canvass the situations in their districts with a view
to determining where loans for working capital
purposes can be made in the public interest to
industrial and commercial enterprises.
" I t was agreed that these loans would be
made chiefly to small and medium-size enterprises, which have the greatest need for such
assistance, to whose needs primary consideration was given by the Congress, and in the improvement of whose condition the Reserve System under this law is primarily concerned."
[PUBLIC—No. 417—73D CONGRESS]
[S. 3487]
AN ACT
Relating to direct loans for industrial purposes by Federal Reserve banks,
and for other purposes
Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled,
That the Federal Reserve Act, as amended, is amended
by adding after section 13a thereof a new section
reading as follows:
" S E C . 13b. (a) In exceptional circumstances, when
it appears to the satisfaction of a Federal Reserve
bank that an established industrial or commercial
business located in its district is unable to obtain
requisite financial assistance on a reasonable basis from
the usual sources, the Federal Reserve bank, pursuant
to authority granted by the Federal Reserve Board,
may make loans to, or purchase obligations of, such
business, or may make commitments with respect
thereto, on a reasonable and sound basis, for the purpose
of providing it with working capital, but no obligation
shall be acquired or commitment made hereunder with
a maturity exceeding five years.
"(b) Each Federal Reserve bank shall also have
power to discount for, or purchase from, any bank,
trust company, mortgage company, credit corporation
for industry, or other financing institution operating
in its district, obligations having maturities not exceeding five years, entered into for the purpose of obtaining
working capital for any such established industrial or
commercial business; to make loans or advances
direct to any such financing institution on the security
of such obligations; and to make commitments with
regard to such discount or purchase of obligations or
with respect to such loans or advances on the security
thereof, including commitments made in advance of the
actual undertaking of such obligations. Each such
financing institution shall obligate itself to the satisfaction of the Federal Reserve bank for at least 20
per centum of any loss which may be sustained by such
bank upon any of the obligations acquired from such
financing institution, the existence and amount of
any such loss to be determined in accordance with
regulations of the Federal Reserve Board: Provided,
That in lieu of such obligation against loss any such
financing institution may advance at least 20 per
centum of such working capital for any established
industrial or commercial business without obligating
JULY
1934
FEDERAL RESERVE BULLETIN
itself to the Federal Reserve bank against loss on the
amount advanced by the Federal Reserve bank: Provided, however, That such advances by the financing
institution and the Federal Reserve bank shall be
considered as one advance, and repayment shall be
made pro rata under such regulations as the Federal
Reserve Board may prescribe.
" (c) The aggregate amount of loans, advances, and
commitments of the Federal Reserve banks outstanding
under this section at any one time, plus the amount of
purchases and discounts under this section held at
the same time, shall not exceed the combined surplus
of the Federal Reserve banks as of July 1, 1934, plus
all amounts paid to the Fe( eral Reserve banks by the
Secretary of the Treasury under subsection (e) of this
section, and all operations of the Federal Reserve
banks under this section shall be subject to such
regulations as the Federal Reserve Boara may prescribe.
"(d) For the purpose of aiding the Federal Reserve
banks in carrying out the provisions of this section,
there is hereby established in each Federal Reserve
district an industrial advisory committee, to be
appointed by the Federal Reserve bank subject to the
approval and regulations of the Federal Reserve Board,
and to be composed of not less than three nor more than
five members as determined by the Federal Reserve
Board. Each member of such committee shall be
actively engaged in some industrial pursuit within the
Federal Reserve district in which the committee is
established, and each such member shall serve without
compensation but shall be entitled to receive from the
Federal Reserve bank of such district his necessary
expenses while engaged in the business of the committee, or a per diem allowance in lieu thereof to be
fixed by the Federal Reserve Board. Each application for any such loan, advance, purchase, discount, or
commitment shall be submitted to the appropriate
committee and, after an examination by it of the
business with respect to which the application is made,
the application shall be transmitted to the Federal
Reserve bank, together with the recommendation of
the committee.
"(e) In order to enable the Federal Reserve banks
to make the loans, discounts, advances, purchases, and
commitments provided for in this section, the Secretary
of the Treasury, upon the date this section takes effect,
is authorized, under such rules and regulations as he
shall prescribe, to pay to each Federal Reserve bank
not to exceed such portion of the sum of $139,299,557
as may be represented by the par value of the holdings
of each Federal Reserve bank of Federal Deposit
Insurance Corporation stock, upon the execution by
each Federal Reserve bank of its agreement (to be
endorsed on the certificate of such stock) to hold such
stock unencumbered and to pay to the United States
all dividends, all payments on liquidation, and all other
proceeds of such stock, for which dividends, payments,
and proceeds the United States shall be secured by such
stock itself up to the total amount paid to each Federal
Reserve bank by the Secretary of the Treasury under
this section. Each Federal Reserve bank, in addition,
shall agree that, in the event such dividends, payments,
and other proceeds in any calendar year do not aggregate 2 per centum of the total payment made by the
Secretary of the Treasury, under this section, it will
pay to the United States in such year such further
amount, if any, up to 2 per centum of the said total
payment, as shall be covered by the net earnings of
the bank for that year derived from the use of the sum
so paid by the Secretary of the Treasury, and that for
said amount so due the United States shall have a first
claim against such earnings and stock, and further that
431
it will continue such payments until the final liquidation of said stock by the Federal Deposit Insurance
Corporation. The sum so paid to each Federal Reserve
bank by the Secretary of the Treasury shall become a
part of the surplus fund of such Federal Reserve bank
within the meaning of this section. All amounts
required to be expended by the Secretary of the Treasury in order to carry out the provisions of this section
shall be paid out of the miscellaneous receipts of the
Treasury created by the increment resulting from the
reduction of the weight of the gold dollar under the
President's proclamation of January 31, 1934; and
there is hereby appropriated, out of such receipts, such
sum as shall be required for such purpose."
SEC. 2. Section 5202 of the Revised Statutes of the
United States, as amended, is hereby amended by adding at the end thereof the following new paragraph:
"Tenth. Liabilities incurred under the provisions
of section 13b of the Federal Reserve Act."
SEC. 3. Section 22 of the Federal Reserve Act is
amended by adding at the end thereof the following
new paragraphs:
"(h) Whoever makes any material statement,
knowing it to be false, or whoever willfully overvalues
any security, for the purpose of influencing in any way
the action of a Federal Reserve bank upon any application, commitment, advance, discount, purchase, or
loan, or any extension thereof by renewal, deferment
of action, or otherwise, or the acceptance, release, or
substitution of security therefor, shall be punished by a
fine of not more than $5,000 or by imprisonment for
not more than two years, or both.
"(i) Whoever, being connected in any capacity with
a Federal Reserve bank (1) embezzles, abstracts, purloins, or willfully misapplies any moneys, funds, securities, or other things of value, whether belonging to it
or pledged or otherwise entrusted to it, or (2) with
intent to defraud any Federal Reserve bank, or any
other body politic or corporate, or any individual, or
to deceive any officer, auditor, or examiner, makes any
false entry in any book, report, or statement of or to a
Federal Reserve bank, or, without being duly authorized, draws any order or issues, puts forth, or assigns
any note, debenture, bond, or other obligation, or draft,
mortgage, judgment, or decree shall be punished by a
fine of not more than $10,000 or by imprisonment for
not more than five years, or both.
"(j) The provisions of sections 112, 113, 114, 115,
116, and 117 of the Criminal Code of the United States,
insofar as applicable, are extended to apply to contracts or agreements of any Federal Reserve bank
under this Act, which, for the purposes hereof, shall be
held to include advances, loans, discounts, purchase,
and repurchase agreements; extensions and renewals
thereof; and acceptances, releases, and substitutions of
security therefor.
" (k) It shall be unlawful for any person to stipulate
for or give or receive, or consent or agree to give or
receive, any fee, commission, bonus, or thing of value
for procuring or endeavoring to procure fron^ any
Federal Reserve bank any advance, loan, or extension
of credit or discount or purchase of any obligation or
commitment with respect thereto, either directly from
such Federal Reserve bank or indirectly through any
financing institution unless such fee, commission,
bonus, or thing of value and all material facts with
respect to the arrangement or understanding therefor
shall be disclosed in writing in the application or request
for such advance, loan, extension of credit, discount,
purchase, or commitment. Any violation of the provisions of this paragraph shall be punishable by imprisonment for not more than one year or by a fine of
432
FEDERAL RESERVE BULLETIN
not exceeding $5,000, or both. If a director, officer,
employee, or agent of any Federal Reserve bank shall
knowingly violate this paragraph, he shall be held liable
in his personal and individual capacity for any loss or
damage sustained by such Federal Reserve bank in
consequence of such violation."
SEC. 4. Section 10 of the Federal Reserve Act, as
amended, is further amended by changing the period
at the end of the third paragraph thereof to a comma
and inserting thereafter the following: "and such
assessments may include amounts sufficient to provide
for the acquisition by the Board in its own name of
such site or building in the District of Columbia as in
its judgment alone shall be necessary for the purpose of
providing suitable and adequate quarters for the performance of its functions. After approving such plans,
estimates, and specifications as it shall have caused to
be prepared., the Board may, notwithstanding any
other provision of law, cause to be constructed on the
site so acquired by it a building suitable and adequate
in its judgment for its purposes and proceed to take all
such steps as it may deem necessary or appropriate in
connection with the construction, equipment, and furnishing of such building. The Board may maintain,
enlarge, or remodel any building so acquired or constructed and shall have sole control of such building
and space therein."
SEC. 5. That the Reconstruction Finance Corporation Act, as amended (U.S.C., Supp. VII, title 15, ch.
14), is amended by inserting before section 6 thereof the
following new section:
" S E C . 5d. For the purpose of maintaining and increasing the employment of labor, when credit at prevailing bank rates for the character of loans applied
for is not otherwise available at banks, the Corporation
is authorized and empowered to make loans to any
industrial or commercial business, which shall include
the fishing industry, established prior to January 1,
1934. Such loans shall in the opinion of the board of
directors of the Corporation be adequately secured,
may be made directly, or in cooperation with banks
or other lending institutions, or by the purchase of
participations, shall have maturities not to exceed five
years, shall be made only when deemed to offer reasonable assurance of continued or increased employment
of labor, shall be made only when, in the opinion of the
board of directors of the Corporation, the borrower is
solvent, shall not exceed $300,000,000 in aggregate
amount at any one time outstanding, and shall be subject to such terms, conditions, and restrictions as the
board of directors of the Corporation may determine.
The aggregate amount of loans to any one borrower
under this section shall not exceed $500,000.
"The power to make loans given herein shall terminate on January 31, 1935, or on such earlier date as
the President shall by proclamation fix; but no provision of law terminating any of the functions of the
Corporation shall be construed to prohibit disbursement of funds on loans and commitments, or agreements to make loans, made under this section prior to
January 31,1935, or such earlier date."
SEC. 6. (a) Section 882 of the Revised Statutes
(U.S.C., title 28, sec. 661) is amended to read as follows:
" S E C . 882. (a) Copies of any books, records, papers,
or other documents in any of the executive departments, or of any corporation all of the stock of which is
beneficially owned by the United States, either directly
or indirectly, shall be admitted in evidence equally
with the originals thereof, when duly authenticated
under the seal of such department or corporation, respectively.
JULY
1934
" (b) Books or records of account in whatever form,
and minutes (or portions thereof) of proceedings, of
any such executive department or corporation, or copies
of such books, records, or minutes authenticated under
the seal of such department or corporation, shall be
admissible as evidence of any act, transaction, occurrence, or event as a memorandum of which such books,
records, or minutes wTere kept or made.
" (c) The seal of any such executive department or
corporation shall be judicially noticed."
(b) Section 4 of the Reconstruction Finance Corporation Act, as amended (U.S.p., Supp. VII, title 15, sec.
604), is amended by inserting immediately before the
semicolon following the words "corporate seal" a
comma and the words "which shall be judicially
noticed".
SEC. 7. Section 1001 of the Revised Statutes, as
amended (U.S.C., title 28, sec. 870), is amended by
inserting immediately after the word "Government"
the following: "or any corporation all the stock of
which is beneficially owned by the United States,
either directly or indirectly".
SEC. 8. The Reconstruction Finance Corporation
Act, as amended (U.S.C., Supp. VII, title 15, ch. 14),
is further amended by inserting after section 5a thereof
the following new section:
"SEC. 5b. Notwithstanding any other provision of
law—
" (1) The maturity of drafts or bills of exchange which
may be accepted by the Corporation under section 5a
of this Act, and the period for which the Corporation
may make loans or advances under sections 201 (c) and
201 (d) of the Emergency Relief and Construction Act
of 1932, as amended, and under section 5 of this Act,
may be five years, or any shorter period, from February
1, 1935: Provided, That in respect of loans or advances
under such section 5 to railroads, railways, and receivers
or trustees thereof, the Corporation may require as a
condition of making any such loan or advance for a
period longer than three years that such arrangements
be made for the reduction or amortization of the indebtedness of the railroad or railway, either in whole or
in part, as may be approved by the Corporation after
the prior approval of the Interstate Commerce Commission.
" (2) The Corporation may at any time, or from time
to time, extend, or consent to the extension of, the time
of payment of any loan or advance made by it, through
renewal, substitution of new obligations, or otherwise,
but the time for such payment shall not be extended
beyond five years from February 1, 1935: Provided,
That the time of payment of loans or advances to railroads, railways, and receivers or trustees thereof, shall
not be so extended except with the prior approval of the
Interstate Commerce Commission, and, in the case of a
loan to a railroad or railway, with the prior certification
of the Interstate Commerce Commission that the railroad or railway is not in need of financial reorganization
in the public interest.
"(3) In connection with the reorganization under
section 77 of the Federal Bankruptcy Act, approved
July 1, 1898, as amended, or with receivership proceedings in a court or courts, of any railroad or railway
indebted to the Corporation, or of any railroad or railway the receivers or trustees of which are indebted to
the Corporation, the Corporation may, with the prior
approval of the Interstate Commerce Commission, adjust or compromise its claim against such railroad or
railway, or any such receiver or trustee, by accepting, in
connection with any such reorganization or receivership
proceedings and in exchange for securities or any part
JULY
1934
FEDERAL RESERVE BULLETIN
thereof then held, new securities which may have such
terms as to interest, maturity, and otherwise as may
be approved by the Corporation, or part cash and part
new securities so approved: Provided, That any such
adjustment or compromise shall not be made on less
favorable terms than those provided in the reorganization of the railroad or railway for holders of claims of the
same class and rank as the claim of the Corporation."
SEC. 9. Section 301 of the National Industrial Recovery Act (U.S.C., Supp. VII, title 40, sec. 412) is
amended by inserting before the period at the end thereof a colon and the following: " Provided further, That
in connection with any loan or contract or any commitment to make a loan entered into by the Reconstruction
Finance Corporation prior to June 26, 1933, to aid in
financing part or all of the construction cost of projects
pursuant to section 201 (a) (1) of the Emergency Relief
and Construction Act of 1932, as amended, the Corporation may make such further loans and contracts
for the completion of any such project, or for improvements, additions, extensions, or equipment which are
necessary or desirable for the proper functioning of any
such project, or which will materially increase the assurance that the borrower will be able to repay the entire
investment of the Corporation in such project, including such improvements, additions, extensions, or equipment; and the Corporation may disburse funds to the
borrower thereunder, at any time prior to January 23,
1939, notwithstanding any provisions to the contrary
contained in this section or in section 201 (h) of the
Emergency Relief and Construction Act of 1932, as
amended: Provided further•, That any such further loans
shall be made subject to all the terms and conditions
set forth in the Emergency Relief and Construction
Act of 1932, as amended, with respect to the loans
authorized by section 201 (a) (1) of said Act.'7
SEC. 10. Notwithstanding any limitations on its
power, the Reconstruction Finance Corporation, upon
request of any borrower under section 201 (a) of the
Emergency Relief and Construction Act of 1932, as
amended, may adjust the maturities of any obligations
of such borrower now held by it, or hereafter acquired
by it under lawful commitments, to such periods as may
in the discretion of the Reconstruction Finance Corporation be proper, but such adjustment shall not extend
any such maturity to more than twenty years from the
advancing of the sum or sums evidenced thereby.
SEC. 11. Section 36 of the Emergency Farm Mortgage Act of 1933, as amended (U.S.C., Supp. VII, title
43, sec. 403), is amended as follows:
(1) By striking from the first sentence thereof
"$50,000,000 to or for the benefit of drainage districts,
levee districts, levee and drainage districts, irrigation
districts, and similar districts," and inserting in lieu
thereof " $125,000,000 to or for the benefit of drainage
districts, levee districts, levee and drainage districts,
irrigation districts, and similar districts, mutual nonprofit companies and incorporated water users' associations".
(2) By striking from the second sentence thereof
"district or political subdivision" and inserting in lieu
thereof "district, political subdivision, company, or
association".
(3) By amending clause (4) thereof to read as follows:
"(4) the borrower shall agree, insofar as it may
lawfully do so, that so long as any part of such loan shall
remain^ unpaid the borrower will in each year apply to
the repayment of such loan or to the purchase or redemption of the obligations issued to evidence such
loan, an amount equal to the amount by which the
assessments, taxes, and other charges collected by it
exceed (a) the cost of operation and maintenance of the
433
project, (b) the debt charges on its outstanding obligations, and (c) provisions for such reasonable reserves
as may be approved by the Corporation; and".
(4) By adding at the end thereof the following new
paragraph:
"When any loan is authorized pursuant to the provisions of this section and it shall then or thereafter
appear that repairs and necessary extensions or
improvements to the project of such district, political
subdivision, company, or association are necessary or
desirable for the proper functioning of its project or
for the further assurance of its ability to repay such
loan, and if it shall also appear that such repairs and
necessary extensions or improvements are not designed
to bring new lands into production, the Corporation,
within the limitation as to total amount provided in
this section, may make an additional loan or loans to
such district, political subdivision, company, or association for such purpose or purposes. When application
therefor shall have been made by any such district,
political subdivision, company, or association any loan
authorized by this section may be made either to such
district, political subdivision, company, or association
or to the holders or representatives of the holders of
their existing indebtedness, and such loans may be
made upon promissory notes collateraled by the obligations of such district, political subdivision, company,
or association or through the purchase of securities
issued or to be issued by such district, political subdivision, company, or associaton.1"
SEC. 12. (a) Sections 2 and 3 of the Act entitled
"An Act to authorize the Reconstruction Finance
Corporation to subscribe for preferred stock and purchase the capital notes of insurance companies, and for
other purposes", approved June 10, 1933, as amended
(U.S.C., Supp. VII, title 15, sees. 605f and 605g), are
amended to read as follows:
"SEC. 2. In the event that any such insurance company shall be incorporated under the laws of any State
which does not permit it to issue preferred stock, exempt
from assessment or additional liability, or if such laws
permit such issue of preferred stock only by unanimous
consent of stockholders, or upon notice of more than
twenty days, or if the insurance company is a mutual
organization without capital stock, the Reconstruction
Finance Corporation is authorized for the purposes of
this Act to purchase the legally issued capital notes of
such insurance company, or, if the company is a mutual
organization without capital stock, such other form or
forms of indebtedness as the laws of the State under
which such company is organized permit, or to make
loans secured by such notes or such other form or forms
of indebtedness as collateral, which may be subordinated in whole or in part or to any degree to claims
of other creditors.
" S E C . 3. The Reconstruction Finance Corporation
shall not subscribe for or purchase any preferred stock
or capital notes of any applicant insurance company,
(1) until the applicant shows to the satisfaction of the
Corporation that it has unimpaired capital, or that it
will furnish new capital which will be subordinate to the
preferred stock or capital notes to be subscribed for or
purchased by the Corporation, equal to the amount of
said preferred stock or capital notes so subscribed for
or purchased by the Corporation: Provided, That the
Corporation may make loans upon said preferred stock
or capital notes, or other form or forms of indebtedness
permitted by the laws of the State under which said
applicant is organized, if, in its opinion, such loans will
be adequately secured by said stock or capital notes or
3
So in original.
434
FEDERAL RESERVE BULLETIN
other form or forms of indebtedness and/or such other
forms of security"! as the Corporation may require,
(2) if at the time of such subscription, purchase, or
loan any officer, director, or'employee of the applicant
is receiving total compensation in a sum in excess of
$17,500 per annum from the applicant and/or any of
its affiliates, and (3) unless at such time, the insurance
company agrees to the satisfaction of the Corporation
that while anyjpart of the preferred stock, notes, bonds,
or debentures (or, in the case of a mutual insurance
company, other form or forms of indebtedness permitted
by the laws of the State under which the company is
organized) of such insurance company is heldfc>ythe
Corporation, the insurance company, except with the
consent of the Corporation, will not (a) increase the
compensation received by any of its officers, directors,
or employees from the insurance company and/or any
of its affiliates, and in no event increase any such
compensation to an amount exceeding $17,500 per
annum, or (b) retire any of its stock, notes, bonds,
debentures, or other forms of indebtedness issued for
capital purposes. For the purposes of this section,
the term "compensation" includes any salary, fee,
bonus, commission, or other payment direct or indirect,
in money or otherwise for personal services."
(b) Section 11 of such Act of June 10, 1933, as
amended (U.S.C., Supp. VII, title 15, sec. 605i), is
amended by adding at the end thereof the following
new sentence: "As used in this section and in sections
1, 2, and 3 of this Act, the term 'State' means any
State, Territory, or possession of the United States,
the Canal Zone, and the District of Columbia."
SEC. 13. The Reconstruction Finance Corporation
is authorized and empowered to make loans upon full
and adequate security, based on mineral acreage, to
recognized and established incorporated managing
agencies of farmers' cooperative mineral rights pools not
engaged in drilling or mining operations, said loans to
be made for the purpose of defraying the cost of organizing such pools.
SEC. 14. The Reconstruction Finance Corporation is
authorized and empowered to make loans upon adequate
security, based on mineral acreage to recognized and
established incorporated agencies, individuals, and
partnerships engaged in the business of mining, milling,
or smelting of ores.
SEC. 15. The Corporation is authorized and empowered to make loans under section 5 of the Reconstruction Finance Corporation Act, as amended, to any
person, association, or corporation organized under the
laws of any State, the District of Columbia, Alaska,
Hawaii, or Puerto Rico, for the purpose of financing the
production, storage, handling, packing, processing,
carrying, and/or orderly marketing of fish of American
fisheries and/or products thereof upon the same terms
and conditions, and subject to the same limitations,
as are applicable in case of loans made under said
section 5, as amended.
SEC. 16. The Reconstruction Finance Corporation is
hereby authorized and empowered to make loans at any
time prior to January 31, 1935, out of the funds of the
Corporation upon full and adequate security, to publicschool districts or other similar public-school authorities
organized pursuant to State law, for the purpose of
payment of teachers' salaries 1due prior to June 1, 1934:
Provided, That the agregate amount of such loans at
any time outstanding shall not exceed $75,000,000.
"^Approved, June 19, 1934.
1
So in original.
JULY
1934
On July 5 the Federal Reserve Board issued
Statement
the following statement relaon Securities
tive to section 7 of the SecuriExchange Act t j e s Exchange Act of 1934:
"At its recent conference with the chairmen
and governors of the Federal Reserve banks
the Federal Reserve Board considered the new
responsibilities placed upon the System by the
Securities Exchange Act of 1934. This act
gives the Federal Reserve Board authority to
determine the margins to be required by brokers
and dealers in extending credit to their customers, and also empowers the Board, within
certain limitations, to prescribe rules and regulations, including margin requirements, for
loans extended by other persons, including
banks, for the purpose of purchasing or carrying securities registered on national securities
exchanges.
"Margin requirements do not become effective before October 1, 1934, and the Board's
regulations on the subject will not be issued for
several weeks.
"In the case of brokers the law lays down a
standard of margins, which shall constitute the
basis of the Board's regulations, although the
Board is given authority to prescribe lower
requirements, if it deems it necessary or appropriate for the accommodation of commerce
and industry, with due regard to the general
credit situation in the country, and to prescribe
higher margins if it deems it necessary or appropriate in order to prevent the excessive use of
credit to finance transactions in securities. In
the case of other lenders on securities, including
banks, no standard is specifically laid down in
the law, the margins to be prescribed being left
to the Board's discretion.
"The fundamental principle by which the
Board is to be guided in determining margin
requirements and in formulating its regulations
is stated in the law. The Board is directed to
enforce its new powers for the purpose of preventing the excessive use of credit for the purchase or carrying of securities. This principle
is in line with the provisions of the Banking Act
of 1933, which in several sections places special
JULY 1934
responsibility on the Federal Reserve banks
and the Federal Reserve Board in connection
with excessive use of bank credit in the security
markets. The law imposes upon the Federal
Reserve Board no duties in connection with the
supervision of the stock exchanges or the prevention of undesirable practices among members of such exchanges. Responsibility for
these matters is placed upon the Securities and
Exchange Commission. The Federal Reserve
Board's duty under this act relates chiefly to
the determination of margins to be required on
security loans, a power to be exercised as a part
of the Federal Reserve System's general credit
policy of controlling undue credit expansion in
the security markets.
"Insofar as banks are concerned, the Federal
Reserve Board's authority under this act
relates to loans made for the purpose of purchasing or carrying securities registered on
national securities exchanges. It does not
apply, therefore, to loans made solely for industrial, agricultural, or commercial purposes,
regardless of the question whether these loans
are secured or unsecured, and, if secured, regardless of the character of the collateral. The
determining factor is the purpose of the loan
and not the nature of the security offered. If
a loan is collateraled by stocks or other equity
securities and is made for the purpose of purchasing or carrying securities registered on a
national securities exchange, it comes under
this section of the act; if it is made for any
other purpose, then it is exempt. The Board's
power under this section, furthermore, does
not apply to loans on exempted securities,
which are defined by the law as including among
other securities obligations of the United States,
or of any State or political subdivision, and
such other securities as the Securities and
Exchange Commission may declare to be
exempted securities. The power of the Board
is further limited by exempting bank loans on
securities other than equity securities, which
means in practice that it is not applicable to
loans on bonds, except bonds such as those
having conversion privileges, and there are
435
FEDERAL RESERVE BULLETIN
certain other exemptions. In general, the law,
insofar as it applies to control over banks, is
intended to prevent the banks from being used
for the purpose of circumventing the margin
requirements prescribed for loans extended by
brokers to their customers, and to prevent
undue expansion of bank credit employed in
the securities markets.
" General banking practices in relation to
loans for industrial, agricultural, or commercial
purposes are not affected by this act."
An act of Congress authorizing the Secretary
of the Treasury to purchase silver and to issue
silver certificates was approved
Silver
by the President on June 19,
Purchase Act
of 1934
The
1934, and is printed below.
president h a d sent t0 Con_
gress on May 22, 1934, the
following message recommending the enactment
of legislation declaring it to be the policy of the
United States to increase the amount of silver
in our monetary stocks with the ultimate
objective of having and maintaining one-fourth
of their monetary value in silver and threefourths in gold:
To the Congress of the United States:
On January 11, 1934, I recommended to the
Congress legislation which was promptly enacted under the title, "The Gold Eeserve Act
of 1934." This act vested in the United States
Government the custody and control of our
stocks of gold as a, reserve for our paper currency
and as a medium of settling international
balances. It set up a stabilization fund for the
control of foreign exchange in the interests of
our people, and certain amendments were added
to facilitate the acquisition of silver.
As stated in my message to the Congress, this
legislation was recommended as a step in improving our financial and monetary system.
Its enactment has laid a foundation on which
we are organizing a currency system that will be
both sound and adequate. It is a long step
forward, but only a step.
As a part of the larger objective, some things
have been clear. One is that we should move
forward as rapidly as conditions permit in
broadening the metallic base of our monetary
system and in stabilizing the purchasing and
debt-paying power of our money on a more
436
FEDERAL RESERVE BULLETIN
equitable level. Another is that we should not
neglect the value of an increased use of silver in
improving our monetary system. Since 1929
that has been obvious.
Some measures for making a greater use of
silver in the public interest are appropriate for
independent action by us. On others, international cooperation should be sought.
Of the former class is that of increasing the
proportion of silver in the abundant metallic
reserves back of our paper currency. This
policy was initiated by the proclamation of
December 21, 1933, bringing our current
domestic production of silver into the Treasury,
as well as placing this Nation among the first to
carry out the agreement on silver which we
sought and secured at the London Conference.
We have since acquired other silver in the
interest of stabilization of foreign exchange and
the development of a broader metallic base for
our currency. We seek to remedy a maladjustment of our currency.
In further aid of this policy, it would be
helpful to have legislation broadening the
authority for the further acquisition and monetary use of silver.
I, therefore, recommend legislation at the
present session declaring it to be the policy of
the United States to increase the amount of
silver in our monetary stocks with the ultimate
objective of having and maintaining one-fourth
of their monetary value in silver and threefourths in gold.
The Executive authority should be authorized and directed to make the purchases of
silver necessary to attain this ultimate objective.
The authority to purchase present accumulations of silver in this country should be
limited to purchases at not in excess of 50
cents per ounce.
The Executive authority should be enabled,
should circumstances require, to take over
present surpluses of silver in this country not
required for industrial uses on payment of just
compensation, and to regulate imports, exports,
and other dealings in monetary silver.
There should be a tax of at least 50 percent
on the profits accruing from dealing in silver.
We can proceed with this program of increasing our store of silver for use as a part of the
metallic reserves for our paper currency without seriously disturbing adjustments in world
trade. However, because of the great world
supply of silver and its use in varying forms by
the world's population, concerted action by all
nations, or at least a large group of nations, is
JULY
1934
necessary if a permanent measure of value,
including both gold and silver, is eventually to
be made a world standard. To arrive at that
point, we must seek every possibility for world
agreement, although it may turn out that this
Nation will ultimately have to take such independent action on this phase of the matter as
its interests require.
The success of the London Conference in
consummating an international agreement on
silver, which has now been ratified by all the
governments concerned, makes such further
agreement worth seeking. The ebb and flow of
values in almost all parts of the world have
created many points of pressure for readjustments of internal and international standards.
At no time since the efforts of this Nation to
secure international agreement on silver began
in 1878 have conditions been more favorable
for making progress along this line.
Accordingly, I have begun to confer with
some of our neighbors in regard to the use of
both silver and gold, preferably on a coordinated basis, as a standard of monetary value.
Such an agreement would constitute an important step forward toward a monetary unit of
value more equitable and stable in its purchasing and debt-paying power.
FRANKLIN D. ROOSEVELT.
THE WHITE HOUSE, May 22, 1934.
SILVER PURCHASE ACT OF 1934
[PUBLIC—No. 438—73D CONGRESS]
[H.R. 9745]
AN ACT
To authorize the Secretary of the Treasury to purchase silver, issue silver
certificates, and for other purposes
Be it enacted by the Senate and House of Representatives of the United States of America in Congress as-
sembled, That the short title of this Act shall be the
" Silver Purchase Act of 1934."
SEC. 2. It is hereby declared to be the policy of the
United States that the proportion of silver to gold in
the monetary stocks of the United States should be
increased, with the ultimate objective of having and
maintaining, one fourth of the monetary value of such
stocks in silver.
SEC. 3. Whenever and so long as the proportion of
silver in the stocks of gold and silver of the United
States is less than one-fourth of the monetary value
of such stocks, the Secretary of the Treasury is authorized and directed to purchase silver, at home or abroad,
for present or future delivery with any direct obligations, coin, or currency of. the United States, authorized by law, or with any funds in the Treasury not
otherwise appropriated, at such rates, at such times,
JULY
1934
FEDEKAL RESERVE BULLETIN
and upon such terms and conditions as he may deem
reasonable and most advantageous to the public interest: Provided, That no purchase of silver shall be made
hereunder at a price in excess of the monetary value
thereof: And provided further, That no purchases of
silver situated in the continental United States on
May 1, 1934, shall be made hereunder at a price in
excess of 50 cents a fine ounce.
SEC. 4. Whenever and so long as the market price of
silver exceeds its monetary value or the monetary value
of the stocks of silver is greater than 25 per centum of
the monetary value of the stocks of gold and silver,
the Secretary of the Treasury may, with the approval
of the President and subject to the provisions of section
5, sell any silver acquired under the authority of this
Act, at home or abroad, for present or future delivery,
at such rates, at such times, and upon such terms and
conditions as he may deem reasonable and most advantageous to the public interest.
SEC. 5. The Secretary of the Treasury is authorized
and directed to issue silver certificates in such denominations as he may from time to time prescribe in a face
amount not less than the cost of all silver purchased
under the authority of section 3, and such certificates
shall be placed in actual circulation. There shall be
maintained in the Treasury as security for all silver
certificates heretofore or hereafter issued and at the
time outstanding an amount of silver in bullion and
standard silver dollars of a monetary value equal to the
face amount of such silver certificates. All silver
certificates heretofore or hereafter issued shall be legal
tender for all debts, public and private, public charges,
taxes, duties, and dues, and shall be redeemable on
demand at the Treasury of the United States in standard silver dollars; and the Secretary of the Treasury is
authorized to coin standard silver dollars for such
redemption.
SEC. 6. Whenever in his judgment such action is
necessary to effectuate the policy of this Act, the
Secretary of the Treasury is authorized, with the
approval of the President, to investigate, regulate, or
prohibit, by means of licenses or otherwise, the acquisition, importation, exportation, or transportation of
silver and of contracts and other arrangements made
with respect thereto; and to require the filing of reports
deemed by him reasonably necessary in connection
therewith. Whoever willfully violates the provisions
of any license, order, rule, or regulation issued pursuant
to the authorization contained in this section shall,
upon conviction, be fined not more than $10,000 or, if
a natural person, may be imprisoned for not more than
ten years, or both; and any officer, director, or agent of
any corporation who knowingly participates in such
violation may be punished by a like fine, imprisonment,
or both.
SEC. 7. Whenever in the judgment of the President
such action is necessary to effectuate the policy of this
Act, he may by Executive order require the delivery
to the United States mints of any or all silver by whomever owned or possessed. The silver so delivered shall
be coined into standard silver dollars or otherwise added
to the monetary stocks of the United States as the
President may determine; and there shall be returned
therefor in standard silver dollars, or any other coin or
currency of the United States, the monetary value of
the silver so delivered less such deductions for seigniorage, brassage, coinage, and other mint charges as the
Secretary of the Treasury with the approval of the
President shall have determined: Provided, That in no
case shall the value of the amount returned therefor
be less than the fair value at the time of such order of
the silver required to be delivered as such value is
437
determined by the market price over a reasonable
period terminating at the time of such order. The
Secretary of the Treasury shall pay all necessary costs
of the transportation of such silver and standard silver
dollars, coin, or currency, including the cost of insurance, protection, and such other incidental costs as may
be reasonably necessary. Any silver withheld in
violation of any Executive order issued under this
section or of any regulations issued pursuant thereto
shall be forfeited to the United States, and may be
seized and condemned by like proceedings as those
provided by law for the forfeiture, seizure, and condemnation of property imported into the United. States
contrary to law; and, in addition, any person failing to
comply with the provisions of any such Executive order
or regulation shall be subject to a penalty equal to
twice the monetary value of the silver in respect of
which such failure occurred.
SEC. 8. Schedule A of title VIII of the Revenue Act
of 1926, as amended (relating to stamp taxes), is
amended by adding at the end thereof a new subdivision to read as follows:
"10.
SILVER, AND SO FORTH, SALES AND TRANS-
FERS.—On all transfers of any interest in silver bullion,
if the price for which such interest is or is to be transferred exceeds the total of the cost thereof and allowed
expenses, 50 per centum of the amount of such excess.
On every such transfer there shall be made and delivered
by the transferor to the transferee a memorandum to
which there shall be affixed lawful stamps in value
equal to the tax thereon. Every such memorandum
shall show the date thereof, the names and addresses
of the transferor and transferee, the interest in silver
bullion to which it refers, the price for which such
interest is or is to be transferred and the cost thereof
and the allowed expenses. Any person liable for
payment of tax under this subdivision (or anyone who
acts in the matter as agent or broker for any such person) who is a party to any such transfer, or who in
pursuance of any such transfer delivers any silver
bullion or interest therein, without a memorandum
stating truly and completely the information herein
required, or who delivers any such memorandum without having the proper stamps affixed thereto, with
intent to evade the foregoing provisions, shall be
deemed guilty of a misdemeanor, and upon conviction
thereof shall pay a fine of not exceeding $1,000 or be
imprisoned not more than six months, or both. Stamps
affixed under this subdivision shall be canceled (in
lieu of the manner provided in section 804) by such
officers and in such manner as regulations under this
subdivision shall prescribe. Such officers shall cancel
such stamps only if it appears that the proper tax is
being paid, and when stamps with respect to any
transfer are so canceled, the transferor and not the
transferee shall be liable for any additional tax found
due or penalty with respect to such transfer. The
Commissioner shall abate or refund, in accordance
with regulations issued hereunder, such portion of any
tax hereunder as he finds to be attributable to profits
(1) realized in the course of the transferor's regular
business of furnishing silver bullion for industrial,
professional, or artistic use and (a) not resulting from
a change in the market price of silver bullion, or (b)
offset by contemporaneous losses incurred in transactions in interests in silver bullion determined, in
accordance with such regulations, to have been specifically related hedging transactions; or (2) offset by
contemporaneous losses attributable to changes in the
market price of silver bullion and incurred in transactions in silver foreign exchange determined, in accordance with such regulations, to have been hedged spe-
438
FEDERAL RESERVE BULLETIN
cifically by the interest in silver bullion transferred.
The provisions of this subdivision shall extend to all
transfers in the United States of any interest in silver
bullion, and to all such transfers outside the United
States if either party thereto is a resident of the United
States or is a citizen of the United States who has been
a resident thereof within three months before the date
of the transfer or if such silver bullion or interest
therein is situated in the United States; and shall
extend to transfers to the United States Government
(the tax in such cases to be payable by the transferor),
but shall not extend to transfers of silver bullion by
deposit or delivery at a United States mint under
proclamation by the President or in compliance with
any Executive order issued pursuant to section 7 of the
Silver Purchase Act of 1934. The tax under this
subdivision on transfers enumerated in subdivision 4
shall be in addition to the tax under such subdivision.
This subdivision shall apply (1) with respect to all
transfers of any interest in silver bullion after the
enactment of the Silver Purchase Act of 1934, and (2)
with respect to all transfers of any interest in silver
bullion on or after May 15, 1934, and prior to the enactment of the Silver Purchase Act of 1934, except that
in such cases it shall be paid by the transferor in such
manner and at such time as the Commissioner, with
the approval of the Secretary of the Treasury, may by
regulations prescribe, and the requirement of a memorandum of such transfer shall not apply.
" As used in this subdivision—
"The term 'cost' means the cost of the interest in
silver bullion to the transferor, except that (a) in^ case
of silver bullion produced from materials containing
silver which has not previously entered into industrial,
commercial, or monetary use, the cost to a transferor
who is the producer shall be deemed to be the market
price at the time of production determined in accordance with regulations issued hereunder; (b) in the case
of an interest in silver bullion acquired by the transferor
otherwise than for valuable consideration, the cost
shall be deemed to be the cost thereof to the last
previous transferor by whom it was acquired for a
valuable consideration; and (c) in the case of any
interest in silver bullion acquired by the transferor
(after April 15, 1934) in a wash sale, the cost shall
be deemed to be the cost to him of the interest transferred by him in such wash sale, but with proper adjustment, in accordance with regulations under this subdivision, when such interests are in silver bullion for
delivery at different times.
"The term 'transfer' means a sale, agreement of
sale, agreement to sell, memorandum of sale or delivery
of, or transfer, whether made by assignment in blank
or by any delivery, or by any paper or agreement or
memorandum or any other evidence of transfer or
sale; or means to make a transfer as so defined.
"The term 'interest in silver bullion' means any title
or claim to, or interest in, any silver bullion or contract
therefor.
"The term 'allowed expenses' means usual and
necessary expenses actually incurred in holding, processing, or transporting the interest in silver bullion as
to which an interest is transferred (including storage,
insurance, and transportation charges but not including
interest, taxes, or charges in the nature of overhead),
determined in accordance with regulations issued
hereunder.
"The term 'memorandum' means a bill, memorandum, agreement, or other evidence of a transfer.
"The term 'wash sale' means a transaction involving
the transfer of an interest in silver bullion and, within
thirty days before or after such transfer, the acquisition
JULY
1934
by the same person of an interest in silver bullion.
Only so much of the interest so acquired as does not
exceed the interest so transferred, and only so much of
the interest so transferred as does not exceed the
interest so acquired, shall be deemed to be included in
the wash sale.
"The term 'silver bullion' means silver which has
been melted, smelted, or refined and is in such state or
condition that its value depends primarily upon the
silver content and not upon its form."
SEC. 9. The Secretary of the Treasury is hereby authorized to issue, with the approval of the President,
such rules and regulations as the Secretary of the
Treasury may deem necessary or proper to carry out
the purposes of this Act, or of any order issued hereunder.
SEC. 10. As used in this Act—
The term "person" means an individual, partnership, association, or corporation;
The term "the continental United States" means the
States of the United States, the District of Columbia,
and the Territory of Alaska;
The term "monetary value" means a value calculated on the basis of $1 for an amount of silver or gold
equal to the amount at the time contained in the standard silver dollar and the gold dollar, respectively;
The term "stocks of silver" means the total amount
of silver at the time owned by the United States
(whether or not held as security for outstanding currency of the United States) and of silver contained in
coins of the United States at the time outstanding;
The term "stocks of gold" means the total amount of
gold at the time owned by the United States, whether
or not held as a reserve or as security for any outstanding currency of the United States.
SEC. 11. There is authorized to be appropriated, out
of any money in the Treasury not otherwise appropriated, the sum of $500,000, which shall be available for
expenditure under the direction of the President and
in his discretion, for-ra.ny purpose in connection with the
carrying out of this Act; and there are hereby authorized to be appropriated annually such additional sums
as may be necessary for such purposes.
SEC. 12. The right to alter, amend, or repeal this Act
is hereby expressly reserved. If any provision of this
Act, or the application thereof to any person or circumstances, is held invalid, the remainder of the Act,
and the application of such provision to other persons
or circumstances, shall not be affected thereby.
SEC. 13. All Acts and parts of Acts inconsistent with
any of the provisions of this Act are hereby repealed,
but the authority conferred in this Act upon the President and the Secretary of the Treasury is declared to be
supplemental to the authority heretofore conferred.
Approved, June 19, 1934, 9 p.m.
MEMORANDUM FOR THE PRESS ISSUED AT THE
TREASURY DEPARTMENT ON JUNE 22
Amplifying the statement concerning the
issue of silver certificates, it was pointed out by
Treasury officials that apparently some confusion exists because of a failure to distinguish
between, on the one hand, the basis on which
or the ounce.age of silver against which silver
certificates may be issued and, on the other
hand, the dollar amount of silver certificates to
be issued.
JULY
1934
FEDERAL RESERVE BULLETIN
As to the first matter, viz, the ounceage of
silver that must be placed behind any given
dollar amount of silver certificates, it was stated
that silver certificates now or hereafter issued
must be secured 100 percent with silver, in the
form of coin or bullion, valued on the basis of
$1.29 an ounce. Silver certificates have been
issued on this basis for over half a century.
Stating the matter another way, each dollar
amount of silver certificates has and will have
back of it either one coined silver dollar or the
amount of silver bullion necessary to coin a
dollar, to wit, 412}^ grains of standard silver or
37\}{ grains of fine silver.
As to the other matter, viz, the dollar
amount of silver certificates to be issued, under
the Silver Purchase Act of 1934, the Secretary
of the Treasury is required to issue silver certificates of a dollar amount equal to the cost of
the silver purchased under section 3 of such
act. This act, in addition, authorizes, but does
not require, him to go further and issue a dollar
amount of silver certificates equal to the monetary value of the silver so purchased, which
monetary value is fixed by law at $1.29 per
ounce. Thus if a thousand ounces of silver is
purchased at a cost of $450, the Treasury is
required to issue $450 in silver certificates, but
may issue $1,290 in such certificates.
STATEMENT TO THE PRESS ISSUED AT THE
TREASURY DEPARTMENT ON JUNE 28
The Secretary of the Treasury, with the approval of the President on June 28 issued an
order forbidding the further export of silver
except under license. Exceptions are made in
the case of fabricated silver, ore, and metals
containing silver in relatively small amounts,
and foreign silver coins. The text of the order
follows:
ORDER OF THE SECRETARY OF THE TREASURY
RELATING TO SILVER
Whereas, section 6 of the Silver Purchase Act
of 1934 provides as follows:
SEC. 6. Whenever in his judgment such action is
necessary to effectuate the policy of this Act, the Secretary of the Treasury is authorized, with the approval
of the President, to investigate, regulate, or prohibit,
by means of licenses or otherwise, the acquisition, importation, exportation, or transportation of silver and
of contracts and other arrangements made with respect
thereto; and to require the filing of reports deemed by
him reasonably necessary in connection therewith.
Whoever willfully violates the provisions of any license,
order, rule, or regulation issued pursuant to the
authorization contained in this section shall, upon con-
439
viction, be fined not more than $10,000 or, if a natural
person, may be imprisoned for not more than ten
years, or both; and any officer, director, or agent of
any corporation who knowingly participates in such
violation may be punished by a like fine, imprisonment, or both.
Whereas in my judgment, such action is
necessary to effectuate the policy of said Silver
Purchase Act of 1934;
Now, therefore, I, Henry Morgenthau, Jr.,
Secretary of the Treasury, do hereby prescribe
the following provisions for the investigation,
regulation, and prohibition of the acquisition,
importation, exportation, or transportation of
silver and of contracts and arrangements made
with respect thereto, and requirements concerning the filing of reports deemed by the
Secretary of the Treasury reasonably necessary
in connection therewith.
SECT[ON 1. Definitions.—As used in this
order the term "person" means an individual,
partnership, association, or corporation; and
the term "continental United States77 means
the States of the United States, the District of
Columbia, and the Territory of Alaska.
SEC. 2. Exportation or transportation from
the continental United States.—Except as otherwise specifically provided in sections 4, 5, and
6 hereof, no person shall export or transport
from the continental United States, any silver
except under license issued pursuant to section
3 of this order.
SEC. 3. Licenses.—The Secretary of the
Treasury, subject to such regulations as he may
prescribe, acting directly or through such
agency or agencies as he may designate, may
issue licenses authorizing the exportation or
transportation from the continental United
States of silver which the Secretary of the
Treasury, or the designated agency, is satisfied:
(a) Is required to fulfill an obligation to deliver such silver outside of the continental
United States, incurred or assumed by the
applicant on or before the date of this order;
(b) Has been owned on and continuously
after the date of this order by a recognized
foreign government, foreign central bank, or
the Bank for International Settlements;
(c) Was imported for prompt reexport, or
was imported in silver bearing materials under
an agreement to refine such materials and export the silver so refined;
(d) Is of a fineness of 0.8 or less; or
(e) With the approval of the President, for
other purposes not inconsistent with the purposes of the Silver Purchase Act of 1934.
SEC. 4. Fabricated silver.—Silver contained
in articles fabricated and held in good faith for
440
FEDERAL RESERVE BULLETIN
JULY
1934
a specific and customary use and not for their mail, a copy of the license shall be sent to the
value as silver bullion may be exported, or postmaster of the post office designated in the
transported from the continental United States, application, who will act under the instructions
without the necessity of obtaining a license: of the Postmaster General in regard thereto.
Provided, That a statement containing such inSEC. 8. Exports prohibited by other orders,
formation as may be required by the Secretary etc.—The provisions of sections 3, 4, 5, and 6
of the Treasury shall have been executed, sworn shall not be construed to authorize any exporto, and filed in duplicate with the collector of tation or transportation from the continental
customs at the port of shipment from the con- United States prohibited by any other order
tinental United States or with the postmaster or by any law, ruling, or regulation.
at the place of mailing; and such collector or
SEC. 9. Reports.—The Secretary of the Treaspostmaster shall have endorsed on the duplicate ury shall require the filing of such reports, in
copy of such affidavit that he is satisfied that such manner, at such times, and containing
the shipment from the continental United such information, as is deemed by him reasonStates is not being made for the purpose of ably necessary in connection with the investiholding or disposing of such articles outside of gation, regulation, or prohibition of acquisithe continental United States primarily for tions, importations, exportations, or transtheir silver content: Provided, That persons
silver and of
leaving the continental United States may carry portations of made with respectcontracts and
thereto.
with them such articles owned by them and for arrangements
SEC. 10. Regulations.—The Secretary of the
their personal use in their fabricated form, of a
fine silver content not exceeding 100 troy Treasury is hereby authorized and empowered
ounces without the necessity of filing such to issue such regulations as he may deem
affidavit or obtaining an export license under necessary to carry out the purposes hereof.
Licenses and permits granted in accordance
this order.
with the provisions of this order and such
SEC. 5. Metals containing silver.—Metals regulations may be issued through such officers
containing not more than 50 troy ounces of and agencies as the Secretary of the Treasury
fine silver per short ton may be exported or may designate.
transported from the continental United States
SEC. 11. Penalties.—All persons are hereby
without the necessity of obtaining a license informed that section 7 of the Silver Purchase
under this order: Provided, That the collector Act of 1934 prescribed penalties for wTillful vioof customs at the port of export or the post- lation of any of the provisions hereof or of any
master at the place of mailing may require the license, order, rule, or regulations issued or prefurnishing of such evidence and the execution scribed under the authority hereof.
of such affidavits as are necessary to satisfy
This order and any regulations, rules, and
him as to the silver content of the metals.
issued hereunder may be
SEC. 6. Silver coin.—Silver coins may be licenses prescribed orat any time.
modified or revoked
exported or transported from the continental
HENRY MORGENTHAU, Jr.,
United States without the necessity of obtaining
Secretary of the Treasury.
a license under this order.
Approved:
SEC. 7. Collectors of customs and postFRANKLIN D. ROOSEVELT.
masters.—At the time any license is issued
THE WHITE HOUSE,
under section 3, the issuing agency shall transJune 28, 1934mit a copy thereof to the collector of customs
at the port of export designated in the license. STATEMENT TO THE PRESS ISSUED AT THE
The collector of customs shall not permit the
TREASURY DEPARTMENT ON JULY 6
exportation or transportation from the contiThe Acting Secretary of the Treasury, pursunental United States of silver in any form except upon surrender of a license issued under ant to authority conferred upon him by the
section 3, a copy of which has been received order of the Secretary of the Treasury relating to
by him from the agency authorized to issue silver, approved by the President June 28,1934,
such license: Provided, That a license under this today (July 5) prescribed regulations for licensorder shall not be required to export or trans- ing the exportation of silver.
Applications for licenses are, in certain cases,
port from the United States silver described in
sections 4, 5, and 6, if the provisions of such required to be filed with the Federal Reserve
sections respectively are complied with. In bank for the district in which the applicant's
the event that the shipment is to be made by residence or principal place of business is lo-
FEDERAL RESERVE BULLETIN
JVLY 1934
cated, while in other cases they are required to
be filed with the United States mint or assay
office nearest the applicant's residence or principal place of business.
Licenses may be issued authorizing the exportation of silver which—
(a) Is required to fulfill an obligation to deliver such silver outside of the continental
United States, incurred or assumed by the applicant on or before June 28, 1934;
(b) Has been owned on and continuously
after June 28, 1934, by a recognized foreign
government, foreign central bank, or the Bank
for International Settlements;
(c) Was imported in silver-bearing materials
under an agreement to refine such materials and
export the silver so refined; or
(d) Is of a fineness of not more than 800 parts
of silver in 1,000 by assay.
The Secretary of the Treasury may, with the
approval of the President, also issue licenses
authorizing the exportation of silver for purposes other than those above enumerated which
are not inconsistent with the purposes of the
Silver Purchase Act of 1934.
No license is necessary to export articles fabricated from silver, foreign silver coin, and ore
and metals containing silver in relatively small
amounts, but, except in the case of foreign
silver coin, an affidavit is required to be filed
with the collector of customs at the port of export or the postmaster at the place of mailing
before the silver may be exported.
REGULATIONS RELATING TO LICENSING THE
OF SILVER
EXPORT
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,
July 5, 1934.
ARTICLE I. MISCELLANEOUS PROVISIONS
SECTION 1. Authority for regulations.—These regulations are prescribed in pursuance of the provisions of
the order of the Secretary of the Treasury relating to
the exportation of silver, approved by the President
under date of June 28,1934.
SEC. 2. Definitions.—As used in these regulations—
The term "person" means an individual, partnership, association, or corporation;
The term "continental United States" means the
States of the United States, the District of Columbia,
and the Territory of Alaska;
The term "export", "exportation", or "reexport"
shall be construed to include transportation from the
continental United States;
The term "importation" or "imported" shall be
construed to include transportation into the continental
United States, and the term "importer" shall be construed to include a person transporting silver into the
continental United States.
441
SEC. 3. Scope.—These regulations relate only to
exports of silver from the continental United States.
SEC. 4. Exportation prohibited by other orders,
etc.—The provisions of these regulations and licenses
issued hereunder shall not be construed to authorize any
exportation from the continental United States prohibited by any other order or by any law, ruling, or
regulations.
SEC. 5. Penalties.—Whoever willfully violates any
provisions of these regulations or of any license, rule,
or order issued pursuant hereto shall, upon conviction,
be fined not more than $10,000, or, if a natural person,
may be imprisoned for not more than 10 years, or both;
and any officer, director, or agent of any corporation
who knowingly participates in such violation may be
punished by a like fine, imprisonment, or both.
ARTICLE II. SILVER WHICH MAY BE EXPORTED WITHOUT
A LICENSE
SECTION 1. Fabricated silver.—Silver contained in
articles fabricated and held in good faith for a specific
and customary use and not for their value as silver
bullion may be exported from the continental United
States without the necessity of obtaining any export
license under these regulations, provided that an
affidavit shall have been executed on form TS-20 and
filed in duplicate with the collector of customs at the
port of shipment from the continental United States or
with the postmaster at the place of mailing; and such
collector or postmaster shall have endorsed on the
duplicate copy of such affidavit that he is satisfied that
the shipment from the continental United States is not
being made for the purpose of holding or disposing of
such articles outside of the continental United States
primarily for their silver content: Provided, That
persons leaving the continental United States may
carry with them such articles owned by them and for
their personal use in their fabricated form of a fine
silver content not exceeding 100 troy ounces without
the necessity of filing such affidavit or obtaining an
export license under these regulations.
Collectors of customs with whom such affidavits are
filed shall forward the duplicate copies thereof bearing
their endorsements as aforesaid to the Director of the
Mint. Postmasters shall forward the duplicate copies
of such affidavits to the Postmaster General for reforwarding to the Director of the Mint.1
SEC. 2. Metals containing silver.—Metals containing not more than 50 troy ounces of fine silver per
short ton may be exported from the continental United
States without the necessity of obtaining a license
under these regulations, provided that an affidavit
shall have been executed on form TS-21 and filed in
duplicate with the collector of customs at the port of
shipment from the continental United States or with
the postmaster at the place of mailing; and such collector or postmaster shall have endorsed on the duplicate copy of such affidavit that he is satisfied that the
silver content of such metals is not more than 50 troy
ounces of fine silver per short ton.
Collectors of customs with whom such affidavits are
filed shall forward the duplicate copies thereof with
their endorsements as aforesaid to the Director of the
1
Sec. 16 (2) of the regulations issued under the Gold Reserve Act of
1934 provides that fabricated gold, as denned in sec. 4 of such regulations,
may be exported or transported from the continental United States
without the necessity of obtaining a license, provided that an affidavit
shall have been executed and filed as provided therein. Therefore, in
order to export articles fabricated from both gold and silver the exporter
must comply with the provisions of the aforesaid gold regulations as well
as with the provisions of these regulations.
442
FEDERAL RESERVE BULLETIN
Mint. Postmasters shall forward the duplicate copy
of such affidavits to the Postmaster 2 General for
reforwarding to the Director of the Mint.
SEC. 3. Silver imported for prompt reexport.—
Silver imported for prompt reexport (regardless of
whether the importation occurred before, on, or after
June 28, 1934) may be exported, from the continental
United States without the necessity of holding a license
therefor, provided it remains under customs custody
throughout the period during which it is within the
customs limits of the continental United States.
SEC. 4. Silver coin.—Silver coins may be exported
from the continental United States without the necessity of obtaining a license under these regulations.3
ARTICLE III. EXPORTATION OF SILVER FROM THE CONTINENTAL UNITED STATES PROHIBITED EXCEPT UNDER
LICENSE
SECTION 1. Licenses required.—Except as hereinbefore provided in article II of these regulations, no
silver shall be exported from the continental United
States unless a license therefor shall first have been
obtained from the Secretary of the Treasury, or the
agency hereinafter designated, in accordance with this
article or article IV of these regulations. Licenses may
be issued authorizing the exportation from the continental United States of silver which the Secretary of
the Treasury, or the designated agency, is satisfied—
(a) is required to fulfill an obligation to deliver such
silver outside of the continental United States, incurred
or assumed by the applicant on or before June 28,
1934;
(b) has been owned on and continuously after June
28, 1934, by a recognized foreign government, foreign
central bank, or the Bank for International Settlements;
(c) was imported in silver bearing materials under an
agreement to refine such materials and export the
silver so refined (licenses under this subdivision are
provided for in article IV of these regulations); or
(d) is of a fineness of not more than 800 parts of
silver in 1,000 by assay.
Subject to the conditions prescribed in these regulations, the Secretary of the Treasury may, with the
approval of the President, issue licenses authorizing
the exportation of silver from the continental United
States for purposes, other than those specified in (a),
(&), (c), and id) of this section, which are not inconsistent with the purposes of th Silver Purchase Act of
1934.
SEC. 2. Application for license.— (1) Every application for license under subdivisions (a) and (b) and the
last paragraph of section 1 of this article shall be made
out on form TS-22, shall be executed under oath before
an officer duly authorized to administer oaths and shall
be filed in duplicate with the Federal Reserve bank for
the district in which the applicant resides or has his
principal place of business. Applications under
subdivision (a) of section 1 of this article shail be
accompanied by a sworn copy of the contract or obligation required to be fulfilled, and a statement under
2 Sec. 17 of the regulations issued under the Gold Reserve Act of 1934
provides that metals containing not more than 5 troy ounces of fine gold
per short ton may be exported from the United States only under a
license issued pursuant to art. I l l of such regulations. Therefore, in
order to export metals containing both gold and silver the exporter
must comply with the provisions of the aforesaid gold regulations as
well as with the provisions of these regulations.
3 The Executive order of Jan. 15,1934, regulating transactions in foreign
exchange, transfers of credit, and the export of coin and currency prohibits the export or withdrawal from the United States of any silver coin
which is legal tender in the United States by any person within the
United States except under license issued pursuant to that order.
JULY
1934
oath (which shall be attached to and made a part of
the application) showing (1) the amount of silver held
by the applicant at the close of business June 28, 1934,
and at the time of his application; and (2) a list of all
his firm contracts whether for purchase or sale of silver,
which at the close of business on June 28, 1934, had
not been completely fulfilled by delivery of all the
silver therein contracted for. Such list shall state (a)
the names and addresses of the parties to each contract; (6) the dates of such contracts; (c) the amounts
of silver contracted for in each contract and the delivery
date specified in each contract; (d) the amount of silver
undelivered under each contract at the close of business
June 28, 1934; (e) the amount of silver undelivered under
each contract at the time of his application, but which
is required to be delivered under such contracts.
Upon receipt of the application and after making such
investigation of the case as it may deem advisable, the
Federal Reserve bank shall transmit to the Secretary
of the Treasury the original of the application, together
with any supplemental information it may deem appropriate. * The Federal Reserve bank shall retain the
duplicate of the application for its records.
(2) Every application for a license under subdivision
(d) of section 1 of this article shall be made on form
TS-23, shall be executed under oath before an officer
duly authorized to administer oaths, and shall be filed
in duplicate with the United States mint or assay office
nearest to the residence or principal place of business of
the applicant. Upon receipt of the application and
after making such investigation of the case as he may
deem advisable, the superintendent or assayer in charge
of the mint or assay office with which the application is
filed shall transmit to the Secretary of the Treasury the
original of the application together with any supplemental information he may deem appropriate. The
mint or assay office shall retain the duplicate of the
application for its records.
SEC. 3. Issuance of licenses.—(1) If the issuance of
a license under subdivision (a) or (b) or the last paragraph of section 1 of this article is approved, the Federal Reserve bank which received and transmitted the
application will be advised by the Secretary of the
Treasury and directed to issue a license on form TSL-22.
If the application is disapproved, the Federal Reserve
bank will be so advised and shall notify the applicant.
The decision of the Secretary of the Treasury with
respect to the approval or disapproval of an application
shall be final. If a license is granted, the Federal
Reserve bank shall thereupon note upon the duplicate
of the application therefor the date of approval and
issuance, and the amount of silver specified in such
license.
(2) If the issuance of a license under subdivision (d)
of section 1 of this article is approved, the mint or assay
office which received and transmitted the application
will be so advised by the Secretary of the Treasury and
directed to issue a license on form TSL-23. If the
application is disapproved, the mint or assay office will
be so advised and shall notify the applicant. The
decision of the Secretary of the Treasury with respect
to the approval or disapproval of an application shall
be final. If a license is granted, the mint or assaj^ office
shall thereupon note upon the duplicate of the application therefor, the date of approval and issuance and
the amount of silver specified in such license.
ARTICLE IV. EXPORT OF SILVER IMPORTED FOR REFINTNG
AND REEXPORT
SECTION 1. Silver imported in silver-bearing materials
for reexport.—The superintendent of the United States
assay office at New York or the United States mint at
JULY
1934
FEDERAL RESERVE BULLETIN
San Francisco shall, subject to the conditions hereinafter specified in this article, issue licenses on form
TSL-24 authorizing the export of silver which the
superintendent of such assay office or mint is satisfied
was refined either from silver-bearing materials imported into the continental United States under an
agreement to refine such materials and export the silver
so refined, or from a mixture containing such materials.
If the silver to be exported was refined from a mixture
of imported and other materials it shall for all purposes
be deemed to have been refined solely from the imported materials and shall be so treated in the applicant's accounts and book records. Such licenses may
be issued regardless of whether the importation occurred
before, on, or after June 28, 1934.
SEC. 2. Notation upon entry.—Upon the formal
entry into the continental United States of any silverbearing materials, the importer shall declare to the
collector of customs at the port whe re the silver-bearing
material is formally entered that the importation is
made under an agreement providing for the export of
the silver refined from such materials. The collector
shall make on the entry a notation to this effect and
forward a copy of the entry to the United States assay
office at New York or to the United States mint at
San Francisco, whichever is designated by the importer.
If the silver-bearing materials were imported on or
prior to the date of these regulations, the declaration
hereinabove required may be waived, provided other
satisfactory evidence is submitted in lieu thereof.
SEC. 3. Sampling and assaying.—Promptly upon the
receipt of each importation of silver-bearing material
at the plant where it is first to be treated, it shall be
weighed, sampled, and assayed for the silver contrnt.
A reserve commercial sample shall be retained by such
plant for at least 2 years from tp e date of importation
unless the assay is sooner verified by the Treasury
Department.
SEC. 4. Plant records.—The importer shall keep an
exact record, covering each Vmportation, to be kept in
the plant of first treatment . The records shall show the
gross wet weight of the im Portation, the weight of containers, if any, the net wet weight, the percentage of
weight of moisture, the net dry weight, the silver content shown by the set tlement assay, and the amount of
silver required to be exported under the agreement.
An attested copy of such record shall be filed promptly,
with the assay office at New York or the mint at San
Francisco, whichever has been designated to receive a
copy of the entry. The plant records herein required
to be kept shall be available for examination b}^ a representative of the Treasury Department for at least
2 years after the date of the disposition of such silver.
SEC. 5. Application for license.—Not later than 3
months from the date of entry the importer shall file
with the assay office at New York or the mint at San
Francisco, whichever has been designated to receive a
copy of the entry, an applicati on on form TS-24 for a
license to export the refined silver. Such application
shall be executed under oath before an officer duly
authorized to administer oaths, filed in duplicate, and
shall be accompanied by a swor n copy of the abovementioned agreement under whi ch the silver-bearing
materials were imported and two duly attested copies
of the settlement sheet.
SEC. 6. Issuance of a serially num bered certificate.—
If the superintendent of the mint or assay office is satisfied as to the accuracy of the data sho wn on such application, he shall issue to the importer a dated, serially
numbered certificate which shall show the amount of
443
the silver specified by the application and the amount
specified by the settlement sheet. The Director of the
Mint shall prescribe the form of such certificate.
SEC. 7. Issuance of export licenses.—Upon delivery
of the serially numbered certificate to the assay office
at New York or to the mint at San Francisco, whichever
has issued the certificate, within 120 days from the date
the certificate was issued, the superintendent of the mint
or assay office shall issue to the applicant an export
license on form TSL-24 to export refined silver in an
amount not exceeding the amount specified in the settlement sheet as show^n on such certificate, shall indicate on the duplicate copy of the application the date
and number of the license, and the amount of silver
authorized to be exported thereunder, and shall forward
such copy of the application to the Secretary of the
Treasury.
ARTICLE V. GENERAL PROVISIONS RELATING TO APPLICATIONS, AFFIDAVITS, AND LICENSES
SECTION 1. General provisions affecting applications, affidavits, and papers.—Every application, affidavit, or other paper required to be made hereunder
shall be made upon the appropriate form prescribed by
the Secretary of the Treasury, shall contain all the
information called for in such form, and shall be
executed under oath before an officer authorized to
administer oaths. Action upon any application or
affidavit may be withheld pending the furnishing of
any or all of the information required in such forms
or of such additional information as may be deemed
necessary by the Secretary of the Treasury, or the
agency authorized or directed to act hereunder.
There shall be attached to the applications, affidavits,
or other papers such instruments as may be required
by the terms thereof and such further instruments as
may be required by the Secretary of the Treasury or
by such agency. Whenever additional information is
requested it shall be furnished under oath.
SEC. 2. Proof of payment of tax on silver transfers.—
Each application for license to export silver shall be
accompanied by satisfactory proof that the tax under
subdivision 10 of schedule A of title VIII of the
Revenue Act of 1926, as added by section 8 of the
Silver Purchase Act of 1934 (hereinafter referred to
as "the tax") upon the transfer to the applicant of
the silver to be exported, and upon the transfer from
the applicant, if any, resulting from such exportation,
has been paid, or that the applicant is not liable for
any tax on either of such transfers; provided, that, if
the exportation is pursuant to an agreement to transfer such silver and the tax upon the transfer resulting
from such agreement is not due at the time of such
application, the applicant may, in lieu of payment of
such tax, give a bond to the United States to pay such
tax, if any, when due. Such bond shall be in an
amount equal to double the amount of the tax as estimated by the Secretary of the Treasury or the agency
designated to act for him.
SEC. 3. Notice upon denial of license.—Whenever an
application for a license under these regulations is
denied the applicant will be so advised.
SEC. 4. Licenses nontransferable.—Licenses and
permits issued or granted under these regulations are
not transferable.
SEC. 5. Procedure after issuance of license.—When
a license is issued under these regulations the original
shall be delivered to the applicant and a copy thereof
shall be transmitted, to the collector of customs at the
444
FEDERAL RESERVE BULLETIN
JTJLY1934
port of exportation designated thereon: Provided, That
Reserves of the Bank of France, on the other
if the applicant shall indicate in his application that he
hand, continued to grow in large volume during
intends to export by mail, a copy of the license shall be
sent to the postmaster at the point of mailing indicated the past month notwithstanding the adverse
in the application, rather than to the collector of
balance of commodity trade of
customs. No collector of customs or postmaster shall
permit the exportation from the continental United France
the country. In part this adStates of any silver under these regulations except upon
verse balance is offset by tourist expenditures,
the filing of a proper affidavit or the surrender of a
license to export, a copy of which has been received by shipping revenues, and income from foreign inhim from a Federal Reserve bank or a mint or assay
office, as the case may be, unless such silver may be vestments ; but the evidence appears to indicate
exported under sections 1, 3, or 4 of article II of these that since 1931 there has been a deficit in the
regulations without a license and without filing an
affidavit. The collector of customs or postmaster to international transactions of the country, exwhom a license to export is surrendered shall cancel clusive of capital movements. The continued
the same by indicating, on both the original and the
copy, whether such silver has been exported. The accumulation of gold in the Bank of France
duplicate copy of trie license shall be retained by him until the end of 1932 reflected largely the refor his files and the original thereof shall be returned
to the Federal Reserve bank or the mint or assay office, patriation of balances hitherto held in foreign
which ever issued it.
centers by the French commercial banks, toSEC. 6. Expiration of licenses.—All licenses issued
gether with some movement of funds to Paris
under these regulations shall expire 30 days from the
date of issuance unless otherwise stated therein.
for safety. By the end of 1932 exchange holdT. J. COOLIDGK,
Acting Secretary of the Treasury.
Gold reserves of the German Reichsbank
continued to decline during the past month,
anc o n
Balance of
^
^ u n e %0 they amounted
international
to less than $30,000,000. Since
t h e e n d of J a n u a i
T they h a v e
declined
by
$125,000,000.
Largely because of this reserve situation and the
continued adverse balance of the country's
international trade a complete moratorium on
service of the long-term foreign debt has been
declared for the next half year. The excess of
merchandise imports into Germany in the first
5 months of 1934 amounted to 180,000,000
reichsmarks, in contrast with a surplus of
exports of 260,000,000 in the same period last
year and a surplus of 825,000,000 in 1931. This
adverse balance of trade appears to be more
than covered by receipts from German shipping
and payments by the U.S.S.R. for goods imported from Germany in previous years; but
not all German merchandise exports yield
their full value in foreign exchange to the
Reichsbank. To a considerable extent payment is effected by means of blocked reichsmarks or German securities purchased abroad
and resold in Berlin. Hence interest payments
abroad in recent months have been accompanied by reductions in gold reserves of the
bank.
ings of the French commercial banks had been
repatriated and it appeared as if the deficit in
the country's international transactions was becoming effective. In December gold began
to flow out of France. The movement continued until the spring of 1933; but since that
time capital movements have again dominated
the French balance of payments. Capital
moved into France in considerable volume after
the united stand taken by the gold countries in
July and moved out in even larger volume during the political difficulties of the autumn and
the following winter. Recently, accompanying measures taken by the government of
national union to balance the budget, there
has been a heavy movement of funds back to
France, and gold reserves of the Bank of
France have increased by $375,000,000 since
the first of March.
The British balance of payments also has
been characterized by large capital movements,
although the accompanying
England
movements of gold have affected the unreported holdings of the equalization fund rather than reserves of the Bank of
England. British acquisitions of gold have
not reflected a surplus in the current international transactions of the country. In 1931,
the year in which England suspended the gold
standard, the adverse balance of commodity
JULY
1934
FEDERAL RESERVE BULLETIN
trade had reached £400,000,000 and income
from foreign investments, shipping, and various
international services was not sufficient to
offset it. For the year as a whole the deficit
on current international transactions was
£100,000,000; and during the summer there
was also a heavy outward movement of foreign
balances from London. In the following year
the adverse trade balance was reduced by
nearly a third and it was reduced again in 1933.
These reductions brought the country's current
international transactions approximately into
balance notwithstanding the decline in income
from foreign investments and other sources.
Recently, however, merchandise imports have
been increasing more rapidly than exports.
The adverse balance of trade from December
1933 through May 1934 has been £23,000,000
larger than in the corresponding period of the
previous year.
In contrast to these three countries, which
have net payments to make on merchandise
imports and on total current
United States
transactions as well, the United
States has a balance of international payments
characterized by a substantial surplus in both
respects. For the period May through September 1933, however, there was a small excess of merchandise imports and total current
transactions appear to have involved a net
payment to foreigners, even making allowance
for some uncertainty in the estimates of invisible items. During this period the export
of capital from this country was a factor in
the decline of the exchange value of the dollar;
but inward movements of capital at the lower
rate for the dollar balanced the account. In
the fall a substantial excess of merchandise
exports again developed and has continued
445
until the present time. The value of imports
has shown no tendency to increase since the
summer of 1933 when the heavy buying of raw
materials and semi-manufactures that accompanied rising markets in the United States
was interrupted. Exports, however, rose more
than seasonally in the latter months of the
year and have since continued on a substantially higher level than in the summer of 1933.
A major element in this rise has been the
growth in exports of finished manufactures.
With the reestablishment of a substantial
excess of merchandise exports there has developed a correspondingly large surplus in the
current international transactions of the country, since income from foreign investments
offsets such debit items as expenditures of
American tourists and remittances of immigrants to their families abroad. This surplus
in current transactions has been accompanied
by acquisitions from foreign gold reserves by
the United States. In particular, after stabilization of the dollar at the end of January,
when the inward flow of capital greatly increased the effects of the current surplus,
there were large imports of gold to this country. In recent months the movement of capital has ceased to be a large factor; but the
excess of merchandise exports together with
the surplus on total current transactions, of
which these exports are a part, continues.
Change in Foreign Central Bank Discount Rates
The following changes in discount rates
during the month ending July 1 have been
reported by central banks in foreign countries:
Austrian National Bank, June 28, from 5 to 4J4
percent.
Bank of Java, July 1, from 4}£ to 4 percent.
446
FEDERAL RESERVE BULLETIN
JULY 1934
REGULATION E OF THE FEDERAL DEPOSIT INSURANCE CORPORATION
(This regulation was approved June 18, 1934, and became effective as of that date)
SCOPE OF REGULATION
This regulation relates to the manner of exercise of
the right of any bank which is not a member of the
Federal Reserve System to withdraw from the Temporary Federal Deposit Insurance Fund on July 1,
1934.
SECTION 1
STATUTORY PROVISIONS
Subsection (y) of section 12B of the Federal Reserve
Act, as amended, provides in part as follows:
"The Corporation shall prescribe by regulations the
manner of exercise of the right of nonmember banks to
withdraw from membership in the fund on July 1, 1934,
except that no bank shall be permitted to withdraw
unless ten days prior thereto it has given written notice
to the Corporation of its election so to do.' ;
SECTION 2
No member bank of the Federal Reserve System is
entitled to withdraw from the fund on July 1, 1934, and
accordingly, each such bank will continue for the period
of extension of the fund to have its deposits insured by
this Corporation as provided by law.
Each fund member which is not a member bank of the
Federal Reserve System will continue for the period of
extension of the fund to have its deposits insured by
this Corporation as provided by law unless it shall exercise its rights to withdraw as of July 1, 1934, by fulfilling the requirements hereinafter enumerated.
SECTION 3
First, any nonmember insured bank, which did not
expressly or impliedly agree with this Corporation in
connection with its admission ^to the fund to fulfill a
commitment to sell preferred stock or capital obligations to the Reconstruction Finance Corporation; or
second, any such bank even though it did so agree,
which has fulfilled its commitment to the Reconstruction Finance Corporation; or third, has been relieved
by this Corporation from its agreement with this Corporation to fulfill such commitment, shall be entitled to
effect its withdrawal from the fund as of July 1, 1934,
by complying with the following requirements and not
otherwise:
(a) Notice of the election of the bank to withdraw
from the fund by a letter or telegram properly directed
to the Federal Deposit Insurance Corporation, Washington, D.C., must be sent by an agent of the bank on
or before June 20, 1934.
(6) A resolution must be lawfully adopted by the
governing board of the bank on or before June 25/1934,
stating that the bank elects to withdraw from the fund
as of July 1, 1934. Said resolution, if adopted prior to
sending the notice prescribed in subsection (a) of this
section, shall authorize the person who subsequently
sends such notice to so do. The resolution referred to
in the first sentence of this subsection, if adopted subsequent to sending the notice prescribed in subsection
(a) of this section, shall ratify the act of sending such
notice.
(c) A copy of the resolution, attested and bearing the
bank's seal and which complies with the preceding subsection, must be properly addressed and mailed to the
Federal Deposit Insurance Corporation, Washington,
D.C., on or before June 25, 1934.
SECTION 4
Any nonmember insured bank which expressly or
impliedly agreed with this Corporation at the time of
its admission to the fund to fulfill a commitment to sell
preferred stock or capital obligations to the Reconstruction Finance Corporation which has not fulfilled
such commitment and which has not been relieved by
this Corporation from its agreement with this Corporation to fulfill such commitment, shall exercise its right
of withdrawal from the fund on July 1, 1934, in the
following manner:
(a) It shall comply with subsections (a), (6), and (c)
of section 3 hereof.
(6) The bank shall comply with either paragraph (i)
or (ii) hereof, but is not required to comply with both.
(i) The bank must fulfill its commitment to the Reconstruction Finance Corporation or in lieu thereof
obtain capital funds from other sources in an amount
at least equal to the amount of capital funds it would
have obtained by fulfilling its commitment to the Reconstruction Finance Corporation and submit to the
Federal Deposit Insurance Corporation satisfactory
proof of the obtaining of such capital funds from other
sources.
(it) If the bank does not comply with paragraph (i)
it shall submit to the Corporation a certificate signed
by at least two executive officers of such bank and a
majority of the board of directors or trustees as to
whether or not, according to the best judgment of such
officers and directors or trustees, the bank has assets
of sufficient value to meet all of its obligations to
depositors and other creditors and shall further submit
proof by affidavit of the same officers that the bank
has notified the authority having supervision of such
State banks that it has elected to withdraw from the
Temporary Federal Deposit Insurance Fund on July
1, 1934.
J U L Y lt>S4
FEDERAL RESERVE BULLETIN
447
NATIONAL SUMMARY OF BUSINESS CONDITIONS
[Compiled June 23 and released for publication June 25]
Industrial production increased slightly in
May, while factory employment and pay rolls
showed little change. The general level of
wholesale prices, after remaining practically
unchanged since the middle of February, advanced sharply in the middle of June, reflecting
chiefly increases in the prices of livestock and
livestock products.
Production and employment.—Industrial
production, as.measured by the Board's seasonally adjusted index, advanced from 86 percent of the 1923-25 average in April to 87
percent in May, as compared with a recent low
level of 72 last November. Activity at steel
mills increased further from 54 percent of
capacity in April to 58 percent in May, while
output of automobiles showed a decline.
Lumber production continued at about onethird the 1923-25 level. In the textile industries output declined somewhat, partly as
a consequence of seasonal developments. At
mines coal production showed little change in
volume, while output of petroleum continued
to increase.
In the first 3 weeks of June activity at
steel mills continued at about the May level,
although a decline is usual at this season.
Maintenance of activity reflected in part, according to trade reports, considerable stocking
of 'steel. Output of automobiles declined somewhat, as is usual at this season.
Employment in factories, which usually declines slightly between the middle of April and
the middle of May, showed little change, while
employment on the railroads, in agriculture,
and in the construction industry increased, as
is usual at this season. Increased employment
was shown at manufacturing establishments
producing durable goods, such as iron and steel
and nonferrous metals, while employment
declined at establishments producing nondurable manufactures, such as textiles and
their products.
Value of construction contracts awarded, as
reported by the F. W. Dodge Corporation, has
shown a decline in the spring months, reflecting
a reduction in the volume of contracts for
public projects. The volume of construction
work actually under way has increased as work
has progressed on contracts previously awarded.
Department of Agriculture estimates based
on June 1 conditions indicated unusually small
crops of winter wheat and rye and exceptionally
poor conditions for spring wheat, oats, hay,
and pastures, largely as a consequence of a
prolonged drought. The winter wheat crop
was estimated at 400 000,000 bushels as compared with a 5-year average of 630,000,000
bushels and an exceptionally small crop of
350,000,000 bushels last season. Rains in
early June somewhat improved prospects for
forage and grain crops not already matured.
Distribution.—Total freight traffic increased
in May by more than the usual seasonal
amount, reflecting in considerable part a larger
volume of shipments of miscellaneous products.
At department stores the value of sales showed
an increase, as is usual at this season.
Commodity prices.—During May and the
first three weeks of June wholesale prices of individual farm products fluctuated widely, while
prices of most other commodities showed little
change. Wheat, after advancing rapidly during May, declined considerably in the first
three weeks of June. Cotton continued to
advance in the early part of June. In the
middle of the month hog prices increased
sharply from recent low levels. Automobile
prices were reduced in the early part of June,
and copper prices advanced.
Bank credit.—During May and the first half
of June there was little change in the volume of
reserve bank credit outstanding. As a consequence of expenditure by the Treasury of cash
and deposits with the Federal Reserve banks
and a growth in the country's monetary gold
stock, member bank reserve balances advanced
further to a level $1,800,000,000 in excess of
legal requirements. In the week ending June
20, however, excess reserves dropped to
$1,675,000,000, reflecting an increase in Treasury deposits at the Reserve banks in connection
with June 15 tax receipts and sales of Government securities.
Total loans and investments of reporting
member banks increased by $80,000,000 between May 16 and June 13, reflecting a growth
in holdings of investments other than United
States Government securities and in openmarket loans to brokers and dealers, while
loans to customers declined. Net demand
deposits increased by about $400,000,000 during
the period.
Money rates in the open market continued
at low levels. The rate on prime commercial
paper declined to %-l percent in June, the
lowest figure on record.
448
FEDERAL RESERVE
JULY 1934
BULLETIN
RESERVE BANK CREDIT AND RELATED ITEMS
MILLIONS OF DOLLARS
8000
Weekly basis: Wednesday series
MILLIONS OF DOLLARS
6000
7000
7000
6000
6000
5000
5000
4000
4000
3000
3000
2000
2000
1000
1000
TREASURY CASH
& DEPOSITS WITH F. R. BANKS
1929
1930
1931
1932
Based on Wednesday figures; latest figures are for June 27.
1933
See table on page 449.
1934
JULY
449
FEDERAL RESERVE BULLETIN
1984
FEDERAL RESERVE BANK CREDIT
RESERVE BANK CREDIT AND RELATED ITEMS
[In millions of dollars.
Wednesday series; for other series, see p. 495]
Eeserve bank credit outstanding
United
Date (Wednesday)
Bills discounted
Bills
bought
Government securities
Other reserve
bank
credit
Total
TreasTreasury
ury
Other
and
Member
cash
NonMoney in
Monetary nationalbank re- and de- mem- Federal
circulagold stock
bank
serve
posits ber de- Reserve
tion
accurbalances
with
posits
counts
rency
F.R.
banks
1933—May
May
May
May
May
3—
1017..
24__
31-
400
338
330
312
302
144
113
78
43
20
1,837
1,837
1,837
1,862
1,890
2,396
2,297
2,254
2,219
2,218
4,312
4,313
4,313
4,314
4,315
2,305
2,303
2,299
2,299
2,298
5,954
5,892
5,852
5,795
5,812
June
June
June
June
7—
14-_
2i__
28. _
277
254
222
191
11
10
9
8
1,912
1,932
1,955
1,975
2,214
2,212
2,194
2,182
4,316
4,318
4,317
4,318
2,296
2,295
2,295
2,296
5,767
5,723
July5_._
July 12-.
July 19..
July26_.
182
168
163
161
23
13
10
10
1,995
2,007
2,017
2,028
2,206
2,201
2,197
2,201
4,318
4,319
4,319
4,320
2,285
2,284
2,283
2,282
Aug.
Aug.
Aug.
Aug.
Aug.
164
156
166
150
153
8
8
7
7
7
2,038
2,048
2,059
2,094
2,129
2,208
2,220
2,240
2,258
2,298
4,320
4,320
4,321
4,328
4,328
Sept. 6 —
Sept. 13Sept. 20..
Sept. 27-
145
133
130
133
7
7
7
7
2,166
2,203
2,238
2,274
12
14
13
7
2,330
2,357
2,388
2,421
Oct.
Oct,
Oct.
Oct.
123
119
113
115
7
7
7
7
2,309
2,344
2,375
2,400
10
7
18
5
Nov 1
Nov.
Nov
Nov
Nov,
117
112
111
112
119
7
7
15
20
24
2,420
2,430
2,432
2,431
2,432
Dec.
Dec.
Dec.
Dec.
6
13—
20—
27—
116
118
115
111
61
116
113
111
1934-Jan. 3
Jan. 10—
Jan.17...
Jan. 24—
Jan. 31—.
106
104
101
97
2___
9___
162330-
4__.
11-.
18..
25..
2,034
2,114
2,194
2,167
487
399
370
329
345
182
178
175
161
155
356
355
355
353
353
2,204
2,281
2,205
2,286
307
316
405
317
197
153
152
169
352
351
348
349
5,752
5,667
5,635
5,601
2,219
2,290
2,306
331
353
335
366
164
169
194
186
344
345
344
344
2,281
2,281
2,281
2,280
2,281
5,618
5,608
5,612
5,592
5,592
2,319
2,376
2,371
2,432
2.427
333
292
315
319
339
188
195
197
175
202
350
350
347
348
347
4,329
1,327
4,327
4,324
2,280
2,281
2,280
2,279
5,648
5,602
5,605
5,595
2,439
2,542
2,543
2,596
327
317
334
331
178
157
164
156
346
346
348
347
2,449
2,477
2, 513
2,526
4,324
4,324
4,323
4,323
2,279
2,278
2,277
2,277
5,652
5,673
5,650
2,523
2,567
2,655
372
338
284
302
159
155
166
167
346
§45
358
357
7
-7
6
-1
7
2,550
2,542
2,564
2,562
2,581
4,323
4,323
4,322
4,323
4,323
2,276
2,275
2,275
2,276
2,277
5,640
5,673
5,654
6,654
5,743
2,591
2,578
2,645
2,687
2,573
388
373
345
316
369
178
161
163
149
142
353
356
355
355
354
2,431
2,432
2,432
2,432
7
11
25
20
2,315
2,077
2,686
2,674
4,323
4,323
4,323
4,323
2,277
2,295
2,299
2,304
5,758
5,763
5,849
6,824
2,561
2,638
2,636
2,675
386
379
329
315
156
160
132
124
354
355
362
362
121
113
112
104
111
2,432
2,432
2,432
2,432
2,434
2,688
2,655
2,646
2,631
2,630
4,323
4,323
4,322
4,322
U,033
2,303
2,302
2,302
2,301
2,302
5,791
5,684
5,643
5,581
15,289
2,710
2,777
2,788
2,851
2,652
311
353
407
398
597
145
172
143
137
141
358
295
288
287
287
2,606
2,593
2,592
2,567
2 7, 036
. 7,089
7,203
7,438
5,317
5,321
5,344
5,355
2,736
2,851
2,830
3,093
»3,449
3,391
3,499
3,440
142
130
132
127
299
290
291
292
2,539
2,532
2,508
2,519
7,556
7,605
7,640
7,681
2,301
2,301
2,301
2,302
2,312
2,332
2,343
2,356
5,374
5,345
5,334
5,336
3,313
3,454
3,449
3,439
3,294
3,226
3,252
3,318
133
143
154
161
294
301
302
303
2,509
2,492
2,493
2,486
7,703
7,732
7,746
7,755
2,369
2,381
2,381
2,380
5,371
5,347
5,347
5,324
3,450
3,560
3,665
3,744
3,323
3,239
3,204
3,148
140
148
167
167
297
312
237
237
3,570
3,678
3,177
3,098
3,082
3,052
3,051
280
257
252
242
233
235
235
233
233
232
3,034
2,956
3,121
3,077
230
251
224
225
237
238
239
236
5,675
Feb.
Feb.
Feb.
Feb.
7—
14...
21...
28...
97
86
75
62
2,432
2,432
2,432
2,432
29
7
1
—2
2
4
7
18
8
Mar.
Mar.
Mar.
Mar.
7...
14..
21..
28..
46
37
33
29
2,432
2,432
2,432
2, 432
-9
5
Apr. 4___.
Apr. 11—
Apr. 18...
Apr. 25—
May 2
May 9
May 16—
May 23—
May 30—
26
17
13
10
2,432
2,432
2,430
2,430
2,432
2,432
2,430
2,430
2,430
5
6
9
3
-1
1
2,484
2,484
2,473
2,469
2,470
7,756
7,756
7,753
7,766
7,776
2,381
2,380
2,380
2,375
2,371
5,359
5,352
5,344
5,316
5,338
3,767
3,763
2,430
2,430
2,430
2,430
10
8
5
3
2,475
2,472
2,468
2,465
7,790
7,820
7,835
7,846
2,365
2,361
2,359
2,364
5,342
5,313
5,310
5,301
3,769
3,837
June 6 . .
_.
June 1 3 —
June 2 0 —
June 27...
3,787
i Beginning Jan. 31,1934, "gold coin in circulation" (estimated for that date at $287,000,000) is excluded from monetary gold stock and money in
circulation; see p. 451.
• By proclamation of the President dated Jan. 31, 1934, at 3:10 p.m., the weight of the gold dollar was reduced from 25$4o grains to 15%i grains
nine-tenths fine. The resulting increase in the value of the monetary gold stock was covered into the Treasury as a miscellaneous receipt and is
reflected in an increase in the item "Treasury cash and deposits with Federal Reserve banks."
«Less than $500,000.
NOTE.—For explanation of recent rearrangement of certain data in this table, see BULLETIN for February 1934, p. 93.
450
FEDERAL RESERVE BULLETIN
JULY 1934
ASSETS AND LIABILITIES OF FEDERAL RESERVE BANKS IN DETAIL; ALSO FEDERAL RESERVE
NOTE STATEMENT AND FEDERAL RESERVE BANK NOTE STATEMENT
[In thousands of dollars]
J u n e 30, 1934
M a y 31, 1934 J u n e 30, 1933
ASSETS
Gold certificates on hand and due from United States Treasury
4, 782, 053
Total reserves _
Redemption fund—Federal Reserve bank notes
Bills discounted:
For member banks
For intermediate credit banks
For nonmember banks, etc
Total bills discounted
___ . _._ _
-..
29,774
215,866
965,230
2, 533,888
44,068
270,153
4,898, 732
4,720
3,813, 339
7,392
24,188
___ .._
4,653,092
25,724
214,011
5, 021, 788
4, 335
Redemption fund—Federal Reserve notes
Other cash
30,880
162,707
Bills bought:
Payable in dollars:
Bought outright
Under resale agreement
Payable in foreign currencies
379
379
977
24,567
_
31, 259
163,684
194
1,997, 652
2, 430, 236
1, 997, 652
519
3,129
6, 690
535
3,125
i 7,451
2,677
3,729
3,830
2, 472, 068
19,202
418,486
52, 637
139, 299
46, 825
8,174, 640
2, 462,882
17, 571
404, 074
52, 602
139, 299
48, 584
8,028, 464
2, 219,587
15, 549
369,841
54, 313
17, 571
3,051,110
15, 549
3,077,862
3,068, 681
60,248
3,093,411
123,851
3,840,086
64,183
4,893
228, 527
3, 746,003
54,817
3,743
218, 545
2, 292, 360
35,481
15, 523
150,896
4,137, 689
418,486
147,120
138, 383
161,834
23.132
4,023,108
404,074
146,301
138,383
161,832
25,837
2, 494, 260
369,841
146,763
278,599
8,174, 640
1, 524
8,028, 464
2, 672
6, 530, 666
35,854
3, 350,986
3,338,801
3,336,867
3, 041, 656
13, 407
322, 000
3, 006, 771
16, 244
359. 300
2, 784, 201
134,459
442, 700
3, 377, 063
3, 382, 315
3, 361, 360
61,058
73, 688
138, 744
66, 474
_
_.
2,430, 236
3,101,314
46, 682
__ _ _
48,015
19, 202
3, 082,112
___
5,178
2, 431,894
__ _
1,089
39,837
7,089
2, 430, 294
1, 600
._
5,075
5, 269
Total bills bought
United States Government securities:
Bought outright.
Under resale agreement- _-_ ._
._ _.
__.
.._
Total U.S Government securities
Other reserve bank credit:
Federal intermediate credit bank debentures
Municipal warrants
Due from foreign banks
.
Reserve bank float (uncollected items in excess of deferred availability items)
Total Reserve bank credit outstanding
Federal Reserve notes of other Reserve banks
Uncollected items not included in
float
._
_ _ __
.
Bank premises _ .
Federal Deposit Insurance Corporation stock
All other assets
Total assets
103
5,075
81,474
1,981
160,974
66, 474
81,474
162,955
50, 645
6, 530,666
LIABILITIES
Federal Reserve notes:
Held by other Federal Reserve banks
Outside Federal Reserve banks
Total notes in circulation Federal Reserve bank note circulation—net
_
.__
_
_
._ _
Deposits:
Member bank—reserve account
United States Treasurer—general account
Foreign bank
Other deposits
Total deposits
Deferred availability items
Capital paid in...
_____
__
_
Surplus.._ _ _ _
__
Reserves (Federal Deposit Insurance Corporation stock, self-insurance, etc.)
All other liabilities
*~~ Total liabilities . _.
_ __ ._ _ _
Contingent liability on bills purchased for foreign correspondents
__
__
..-
23,941
FEDERAL RESERVE NOTE STATEMENT
Notes issued to Federal Reserve banks by Federal Reserve agents
Collateral held by agents as security for notes issued to bank:
Gold certificates on hand and due from U.S. Treasury
Eligible paper
U.S. Government securities. _.. _
Total collateral
..
.
...
FEDERAL RESERVE BANK NOTE STATEMENT
Notes issued to Federal Reserve banks (outstanding)
Collateral pledged against outstanding notes:
Discounted and purchased bills
U.S. Government securities
T o t a l collateral
1
Excess of deferred availability items over uncollected items.
-._
-
-
FEDERAL RESERVE
JULY 1934
ANALYSIS OF CHANGES IN MONETARY
STOCK
GOLD
MOVEMENTS OF GOLD TO 1AND FROM
UNITED STATES
[Ir millions of dollars]
[In thousands of dollars]
Analysis of changes
Gold
sto°k
Net reat end Increase
Net gold lease
Other
of
month in gold import from ear- factors
stock
mark i
Month
1934
June
(preliminary)
From or to
Imports
$l=26$io grains of gold Y\Q fine; i.e., an
ounce of fine gold=$20.67
4,513 i 173.5 II 100.9
71.0 ,
l.(
1932—December
451
BULLETIN
Exports
JanuaryMay
May
Imports
Exports
Imports
Exports
151
20
Belgium
10
4,321
7, 677
1,750 407, 547
England
28, 224
41.6 France
178, 276
250
517
17
9,306
2
Germany
1933—January
128. 5 - 9 1 . 5
3.0 Netherlands
40.0
4,553
74, 662
351
1,678
February-_.
17.8 -178.3
-12.9 Switzerland.
4,380 -173.4
12,656
March
- 2 2 . 1 -100.1
25.0 Canada
-97.2
4,282
12 40, 510
8, 685
_ "6," 736'
~"~55
-10.0
April..
5.7 Central America
29.5
33.7
4,312
1,009
333
-21.1
2.6 Mexico
May
3.6
22.1
4,315
2,086
13,473
~2~212
-3.2
1.9 Argentina
June...
2.2
3.5
4,318
5
-83.9 i
2.1 Colombia
July
27
84.5
4,320 i
2,554
9,199
-80.4 j
8.4 Ecuador. _
79.5
August
1. 5
4,328
214
90
-56.7 !
3. 6 Peru
September-3.8
49.3
4,324
441
18
-.
-32.4 I
4.8 Uruguay
October
26.9
-0.7
4,323
0.4 Venezuela.
November0.6
4,323
- 1 . 1 I
418
59
- 3 . 1 Australia
December..
11.8
4,323
- 9 . 1 I
-0.5
48
279
26, 318
10, 240
British India
12, 900
Total (12 mo.).
-190.4 - 1 7 3 . 7 I - 5 8 . 0
41.4 China and Hong
2,224
1,865
Kong
1934—January
M.033 1 2 -289.3 !! - 2 . 8
12.2 1-298.7 Dutch East Indies.._
8,448
$l=15%i grains of gold <Mo fine; i.e., an
4
Japan
ounce of fine gold = $35
944
4,397
Philippine Islands. 2_
February.
452.6
68.7 ! 2,883. 8 All other countries .
7,438 3,405.0
495
4,075
March
237.3
20.3
-0.8 i
7,695
256.8
April
54. 7
7.9
-1.1 i
7, 757
61.5
6,626
35, 362
1,780 782,085
Total
62,147 I
May
33.6
0.5 | -11.0
7,779
22.4
I
I
62.1
13.6
June p
1.2
7,856
77.0
i With some exceptions figures represent customs valuations at rate of
$20.67 a fine ounce through January 1934 and $35 a fine ounce thereafter.
1
v Preliminary.
Includes all movements of unreported origin or destination.
i Gold released from earmark at Federal Reserve banks less gold
placed under earmark (with allowance when necessary for changes in
Back figures—See Annual Report for 1932 (tables 49 and 50).
gold earmarked abroad for account of Federal Reserve banks),
8
Decrease reflects primarily omission from gold stock of "gold coin in
circulation" beginning with January 1934; see note 0) at bottom of page.
Back figures.—See Annual Report for 1932 (table 47).
Total (12 mo.).
52.9 l| -446.2
457.5
KINDS OF MONEY IN CIRCULATION
[Money outside Treasury and Federal Reserve banks.
End of month
1933—January
February
March
April
May
June
July
August
September
October
November
December
_
1934—January
February
March....
April
May
June p
Total
_
| 5,645
I 6,545
6,320
I 6,003
-_! 5,812
i 5,721
i 5,630
5,612
! 5,650
j 5, 635
' 5,742
; 5,806
j i 5,289
, i 5, 354
! 15,394
;
15,368
i 15,357
I 15,372
Gold
coin
479
571
367
335
324
321
320
319
312
312
311
311
0)
(0
0)
0)
(0
(])
In millions of dollars]
United Federal Federal NaGold Stand- Silver Treas- Subury
ard
certifi- silver certifi- notes sidiary Minor States Reserve Reserve tionalbank
bank
coin
notes
notes
cates dollars cates of 1890 silver
notes
notes
591
649
393
323
280
265
252
242
232
225
219
213
28
28
28
28
28
28
28
28
28
29
29
29
350
362
376
360
359
361
365
372
385
387
394
407
1
1
1
1
1
1
1
1
1
1
1
1
250
252
258
255
256
257
258
261
265
267
269
272
111
111
112
112
112
113
113
114
115
116
117
117
287
301
266
261
265
269
275
277
280
111
285
286
2,707
3,405
3,621
3,362
3,167
3,061
2,974
2,953
2,966
2,930
2,998
3,044
3
3
17
50
99
125
129
133
156
189
206
208
836
861
879
915
922
920
914
911
909
903
913
918
178
167
161
157
153
150
29
29
30
30
30
30
391
399
403
400
402
405
1
1
1
1
1
1
267
270
272
274
277
279
116
117
118
118
120
119
283
289
289
282
279
280
2,894
2,949
3,005
3,025
3,038
3,068
202
194
178
162
151
141
927
938
936
918
906
902
v Preliminary figures.
1
Omission of figures for gold coin reflects change in reporting practice of Treasury and Federal Reserve banks (effective Jan. 31, 1934, when
figure would have been $287,000,000).
NOTE.—For figures of paper currency of each denomination in circulation see p. 499.
Back figures.—See Annual Report for 1932 (table 52).
452
FEDERAL RESERVE BULLETIN
JULY 1934
MEMBER BANK RESERVE BALANCES
[In millions of dollars. Averages of daily figures]
Excess reserves
Reserves held
Month
'Country'
banks
Total—all
member
banks
New York
City'
781
797
12
863
887
911
455
444
443
444
441
440
204.4
269.9
345.5
435.9
482.2
525.8
75.0
127.7
193.4
241.6
266.8
283.2
91.6
108.9
119.6
160.5
181.8
206.9
37.9
33.3
32.4
33.7
33.7
35.7
1,109
965
442
441
583.8
417.3
286.2
74.5
254.2
291.0
43.4
51.8
2,040
2,069
2,160
2,221
2,331
2,451
2,557
2,599
2,588
878
861
796
837
896
893
866
828
742
773
858
936
993
1,056
1,135
1,181
1,193
431
418
441
489
501
499
529
553
567
379.1
319.1
363.1
435.7
565.5
674.5
758.4
794.1
765.7
150.2
106.0
68.9
43.2
101.8
155.2
149.0
129.8
96.0
129.4
132.0
198.0
252.9
312.3
371.5
437.9
474.7
472.6
99.5
81.2
96.2
139.6
151. 3
147.8
171.5
189.6
197.1
2,740
2,799
3,345
3,582
897
872
1,227
1,290
1,323
1,221
1,271
1,422
1, 536
622
656
696
756
773
865.7
890.8
1, 375.1
1,541.0
1, 623. 5
146.8
118.3
432.2
454.6
484.7
476.6
509.1
645.5
736.4
778.4
242. 4
263. 4
297.4
350.1
360.4
Total—all
member
banksi
2932—July
August
SeptemberOctober
NovemberDecember..
2,003
2,073
2,181
2,307
2,378
2,435
767
832
927
1,001
1,050
1,083
1933—January
February
March 3
April.
May
June
July
August
September
October
November...
December
2,516
2,291
Other
reserve
cities
New York
City 2
1934—January
February
March
April
May
1,598
1
Beginning with April 1933 the figures relate to licensed banks only.
Back figures.—See Annual Report for 1932 (table 69).
2
Central reserve city banks only.
3
Other
reserve
cities
"Country"
banks
March data not available.
MEMBER BANK DEPOSITS
[In millions of dollars. Averages of daily figures]
Net demand and time deposits
Month
Total
all member
banks l
New
York
City 2
Other
reserve
cities
1932—July.
August
September .
October
November.
December.-
24, 712
24, 744
24,973
25, 292
25, 476
25, 492
5,951
6,084
6,308
6,559
6,762
6,877
9,830
9,833
9,853
9,939
9, 964
9,941
1933—January
February.,.
March 3
April
May
June
July
August
SeptemberOctober
November^.
December..
25,641
24,978
7,050
6,722
21, 710
22, 509
22,974
23,160
23, 039
23,140
23, 369
23, 486
23, 646
6, 120
6,517
6,669
6,424
6,282
6,318
6,341
6, 289
6,215
10, 023
9,847
8,520
8,842
9,031
9,309
9,318
9,345
9, 453
9.531
9,659
1934—January..
February.
March
April
May
24,248
24, 674
25, 288
26,009
26, 363
6,348
6.370
6, 671
6,992
7,001
9,963
10,124
10, 303
10, 568
10, 787
Net demand deposits
T tal"Coun- all omemtry"
ber
banks banks l
Other
reserve
cities
T tal"Coun- all omemtry"
ber
banks banks l
New
York
City 2
Other
reserve
cities
" Country"
banks
8,931 I 14,157
I
14,141
8,827
14, 408
8,811
14,679
8,795
14, 864
8,751
8,674 14, 965
5,133
5,217
5,440
5,629
5,804
5,937
5,304
5,283
5,316
5,402
5,432
5,424
3,720
3,641
3,652
3,649
3,628
3,604
10, 555
10, 603
10, 565
10,612
10,612
10, 527
818
867
869
929
957
940
4,526
4,550
4,538
4,537
4,532
4,517
5,211
5,186
5,159
5,145
5,123
5,071
8,568
8,409
15,116
14,645
6,109
5,842
5,470
5,368
3,537
3,435
10, 525
10, 333
941
4,553
4,479
5,031
4,974
7,071
7,150
7,273
7,427
7,439
7,477
7,575
7,666
7,772
13,078
13,815
14, 241
14,100
13,920
14,027
14, 243
14, 347
14, 567
5,331
5,766
5,923
5,597
5,468
5,516
5, 535
5,475
5,452
4,756
4,991
5,162
5,329
5,299
5,333
5, 459
5,543
5,691
2,990
3,058
3,156
3,174
3,153
3,178
3,249
3,330
3,424
8,633
8,694
8,732
9,060
9,119
9,113
9,126
9,139
9,078
788
751
746
826
814
802
805
814
763
3,764
3,851
3,869
4,081
4,092
4,117
4,253
4,286
4,299
4,326
4,336
4,348
7,952
8,180
8,314
8,449
8,575
15,021
15.341
15,851
16,457
16, 720
5,599
5, 624
5,943
6,256
6, 283
5,894
6,048
6,172
6,384
6,541
3,528
3, 668
3, 736
3,817
3,896
9,227
9,333
9,437
9,552
749
746
728
736
719
4,043
4,075
4,131
4,184
4,246
I
Beginning with April 1933 the figures relate to licensed banks only.
Central reserve city banks only.
March data not available.
Back figures.—See Annual Report for 1932 (table 69).
1
2
3
New
York
City 2
Time deposits
4,019
4,012
3,994
4,435
4,512
4,578
4,632
4,679
JULY
453
FEDERAL RESERVE BULLETIN
1934
ALL MEMBER BANKS—CLASSIFICATION OF LOANS AND INVESTMENTS
[In millions of dollars]
Purchased paper
Total
loans
and
investments
Call date
Investments
Open-market loans
Loans to other customers
Loans
to
banks
35, 656
35,472
34, 860
34,729
33,923
33, 073
30, 575
28,001
28,045
27,469
24, 786
24,953
25,220
26, 548
Loans
to
broAccept- Acances cept- Com- kers
in
paya- ances mercial
New
ble in payable
paper Y o r k i
United
States abroad
Total
2,365
2,472
1,498
1,630
1,217
928
575
278
414
357
788
748
840
855
10,442
10, 734
10,989
11, 889
12,106
12,199
11, 314
11,414
12,121
12, 265
11,928
11,894
12, 386
13,842
1,883
1,714
1,281
1,367
1,063
839
542
258
391
337
720
624
706
687
301
337
212
212
189
167
62
62
65
46
61
91
78
171
164
120
114
101
81
48
36
36
28
27
46
34
54
Total
OtherSewise
Secured
secured
cured
by
Total
stocks by real and
and estate unsecured
bonds
535
466
631
446
457
599
790
573
457
444
330
297
287
225
21,565
21, 010
21,007
19, 940
19, 257
18, 713
17, 570
15, 267
14, 497
13, 905
11, 337
11, 523
11,315
11,093
8,061
7,864
7,942
7,423
7,117
6,842
6,290
5,292
5,086
4,848
3.916
3; 809
3,772
3,644
3,155
3,163
3,234
3,220
3,218
3,149
3,038
2,894
2,885
2,862
2,372
2,364
2,359
2,382
10, 349
9,982
9,831
9,298
8,922
8,722
8,242
7,081
6,527
6,195
5,049
5,350
5,184
5,067
3,113
3,262
2,233
2,454
2,103
1,563
901
747
970
855
1,191
1,238
1,231
1,387
170
205
315
361
389
268
146
313
407
375
291
303
223
350
8,798
8,557
8,582
8,473
8,287
8,253
7,460
6,715
7,112
7,327
7,133
6,971
6,995
7,351
196
169
283
154
150
250
374
260
203
216
162
143
146
112
4.308
4,278
4,338
4,007
3,839
3,850
3,694
2,856
2,638
2,621
2,297
2,436
2,395
2,321
2,022
2,031
2,137
1,960
1,897
1,816
1,728
1,343
1,300
1,247
1,082
1,032
1,034
157
157
147
150
160
152
153
160
154
160
157
149
148
156
2,129
2,090
2,054
1,896
1,782
1,881
1,813
1,353
1,184
1,214
1,057
1,254
1,213
1,180
2,091
1,912
1,525
1,651
1,497
1,121
695
565
763
701
964
891
912
144
148
188
199
296
201
107
262
341
330
224
233
170
276
13,701
13,971
13, 758
13,965
13,567
13,016
12,115
11,045
10,979
10,535
9,780
9,951
10.157
10,816
277
235
286
235
247
284
347
254
205
178
129
120
103
79
9,029
8,726
8,906
8,409
8,100
7,845
7, 407
6,519
6,196
5,879
4,846
4,912
4f797
4,669
3,811
3,632
3,656
3,366
3,188
3,092
2,806
2,403
2,304
2,169
1,702
1,660
1.630
1,566
8,229
8,007
7,762
7,524
7,318
7,018
6,469
5,892
5,663
5,405
4,194
4,175
4,123
4,103
2,227
2,200
2,149
2,097
2,031
1,935
1,756
1,546
1,481
1,432
1,132
1,118
1,108
1,093
U.S.
Government
securities
Other
securities
Total
loans
secured
by
stocks
and
bonds
TOTAL—ALL MEMBER
BANKS
1930—June 30_._
Sept. 24
Dec. 31
1931—Mar. 25
June 30
Sept. 29
Dec. 31
1932—June 30.
Sept. 30
Dec. 31
1933—June 30 »—_
Oct. 25
Dec. 30
1934—Mar. 5
_.
.--.
_._.
_.
71
62
55
101
113
70
41
34
34
30
25
24
37
26
507
523
366
361
384
296
140
122
115
93
87
164
132
157
4,061
4,095
4,125
5,002
5,343
5,564
5,319
5,628
6,380
6,639
6,864
6,540
6,887
6,801
7, 254
8,667
6,763
6,635
5,996
5,786
5,755
5,726
5,041
5,093
5,132
5,175
10,666
10,511
9,754
9,272
8,56a
8,081
7,320
5,916
5,770
6,447
4,884
4,713
4,769
4,606
2,203
2,198
2,435
2,662
2,801
3,032
2,697
3,033
3,508
3,789
3,709
3,501
3,542
3,932
1,147
1,091
1,239
1,466
1,656
1,830
1,768
2,008
2,429
2,603
2,551
2,320
2,362
2,768
1,056
1,107
1,197
1,196
1,145
1,202
928
1,025
1,079
1.186
1,158
1,181
1,179
1,164
3,983
3,798
3,550
3,397
3,026
2,780
2,474
1,757
1,811
1,699
1,888
1,728
1,824
1,724
353
643
167
227
124
56
16
7
14
12
58
100
112
138
3,685
3,947
4,035
4,676
4,750
4,561
4,226
4,154
4,427
4,362
4,621
4,645
5,000
5,763
1,686
1,785
1,727
2,313
2,408
2,301
2,133
2,187
2,466
2,462
2,867
2,889
3.209
3,954
1,999
2,161
2,308
2,364
2,342
2,260
2,093
1,966
1,961
1,900
1,754
1, 757
1,790
1,809
4,306
4,387
3,991
3,729
3,459
3,317
3,050
2,585
2,456
2,298
1,846
1,836
1,809
1, 753
129
115
49
36
30
32
16
13
4,555
4,589
4,519
4,550
4,555
4,606
4,392
4,226
4,187
4,114
3,598
3,748
3,845
4,148
1,229
1,219
1,159
1,224
1,279
1,433
1,418
1,432
1,471
1,474
1,469
1,592
1,683
1,946
3,370
3,359
3,326
3,276
3,172
2,974
2,794
2,715
2,640
2,129
2,156
2,162
2,202
2,367
2, 326
2, 213
2,147
2,078
1,986
1,796
1,574
1,603
1,450
1,150
1,148
1,136
1,12S<
N E W YORK CITY »
1930—June 30
Sept. 24
Dec. 31
1931—Mar. 25
June 30
Sept. 29
Dec. 31
1932—June 30
Sept. 30
___.
Dec. 31
_
1933—June 30 »__._
Oct. 25
Dec. 30
1934—Mar. 5
OTHER RESERVE CITIES
1930—June 30
Sept. 24
Dec. 31
1931—Mar. 25
June 30
Sept. 29
Dec. 31
1932—June 30
Sept. 30
Dec. 31
1933—June 30 *
Oct. 25.
Dec. 30
1934—Mar. 5
_.
710
3,693
3, 567 1,064
531
3,620
645
3,423
470
3,291
326
3,168
135
3,063
118
2.709
151
2,486
115
2,312
184
1,984
274
2,108
258
2.016
306
1,945
18
54
122
158
91
67
-\5
38
58
44
63
68
50
64
" C O U N T R Y " BANKS
1930—June 30
Sept. 24
Dec. 31
1931—Mar. 25
June 30
Sept. 29_
Dec. 31.
1932—June 30
Sept. 30
Dec. 31
1933—June 30 s
Oct. 25
Dec. 30..
1934—Mar. 5.
1
2
8
...
13,157
12,944
12, 519
12,290
12,068
11,805
10,999
10, 240
9,954
9,607
7,873
8,031
8,068
8,381
1,475
1,480
1,455
1,449
1,437
1,411
1,346
1,328
1,324
1,304
1,055
1,070
1,061
1,068
4,527
4,326
4,158
3,978
3,849
3,673
3,367
3,018
2,857
2,669
2,007
1,987
1,955
1,942
312
286
177
158
135
116
71
64
55
39
43
73
62
95
Loans (secured by stocks and bonds) to brokers and dealers in securities at New York City.
Beginning June 30, 1933, figures relate to licensed banks only.
Central reserve city banks only.
Back figures.—This classification of loans is not available for dates prior to Oct. 3,1928, see Annual Report for 1931 (table 53), but comparable
figures of total loans secured by stocks and bonds are given for June 30,1925-28, in the board's Annual Report for 1928 (table 52); for separate figures
of United States Government securities and other securities back to 1914, see Annual Report for 1932 (table 73).
454
FEDERAL
RESERVE
BULLETIN
JTJLY 1934
ALL BANKS IN THE UNITED STATES
[Includes national banks, State commercial banks and trust companies, mutual and stock savings banks, and all private banks under State
supervision]
LOANS AND INVESTMENTS
[In millions of dollars!
All banks
Nonmember banks
Member banks
Mutual savings banks
Date
Total
Loans
Investments
Total
Loans
Investments
Other nonmember banks
Total
Loans
Investments
Total
Loans
Investments
1929—Mar. 27
June 29....
Oct. 4
Dec. 31.
58,019
58,474
58,835
58,417
40,557
41,512
42,201
41,898
17,462
16,962
16,634
16, 519
35,393
35,711
35,914
35,934
24,945
25,658
26,165
26,150
10,448
10, 052
9,749
9,784
i 9,390
9,556
i 9,556
9,463
i 5,694
5,892
» 5,892
5,945
i 3,696
3,664
i 3,664
3,518
13,236
13,207
13,366
13,020
9,918
9,961
10,144
9,803
3,317
3,246
3,221
3,217
1930—Mar. 27
June 30
Sept. 24
Dec. 31...
57,386
58,108
57, 590
56,209
40,686
40,618
39, 715
38,135
16,700
17, 490
17,875
18,074
35, 056
35,656
35, 472
34,860
25,119
25, 214
24, 738
23, 870
9,937
10, 442
10, 734
10,989
i 9,463
9,747
i 9, 747
9,987
1
5,945
6,009
i 6,009
6,068
i 3,518
3,739
i 3, 739
3,920
12,868
12,706
12, 371
11,362
9,623
9,395
8,968
8,196
3,245
3,309
3,402
3,165
1931—Mar. 25.
June 30
Sept. 29.
Dec. 31
55,924
55, 021
53, 365
49, 704
36,813
35,384
33, 750
31, 305
19,111
19,637
19, 615
18, 399
34, 729
33,923
33, 073
30, 575
22,840
21,816
20, 874
19, 261
11,889
12,106
12,199
11,314
i 9,987
10, 506
i 10, 506
10, 488
i 6, 068
6,169
i 6,169
6,218
i 3,920
4,337
i 4,337
4,270
11,208
10, 593
9,786
8,641
7,906
7,399
6,707
5,827
3,302
3,194
3,079
2,814
1932—June 30.
Sept. 30
Dec. 31
46,071
45,852
44,946
27,834
26,985
26,063
18, 237
18,867
18, 883
28,001
28,045
27,469
16, 587
15,924
15, 204
11,414
12,121
12, 265
10, 316
i 10, 316
10,182
6,130
i 6,130
6,079
4,186
i 4,186
4,103
7,755
7,491
7,295
5,117
4,931
4,780
2,637
2,560
2,515
1933-June 302—
Oct. 25 3
Dec. 30
40,089
22, 215
17,874
11,928
11,894
12,386
4,103
5,258
3,415
1,843
18, 400
12, 858
13,059
12,833
5,941
22,077
24, 786
24,953
25, 220
10,044
40, 477
9,989
5,909
4,080
5,269
3,336
1,934
26,548
12, 706
13,842
1934—Mar 5 3
1
8
Figures of preceding call carried forward.
Beginning June 30, 1933, all figures (other than for mutual savings banks) relate to licensed banks only, with some exceptions as to nonmember banks.
3 Nonmember bank figures not available.
DEPOSITS, EXCLUSIVE OF INTERBANK
DEPOSITS
NUMBER OF BANKS
Member banks
Nonmember
banks
Total
National
Other
Mutual nonsavings membanks
ber
banks
8,755
8,707
8, 616
8,522
7,928
7,782
7,599
7,246
6,980
6,904
6,816
7,569
7,530
7,468
7,403
7,311
7,247
7,192
7,033
6,930
6,800
6,653
6,368
6,145
6,080
6,011
5,606
5,818
6,011
4,897
5,052
5,154
6,206
5,288
[In millions of dollars]
Nonmember banks
Date
1929—Mar. 27—
June 29-_ .
Oct. 4
Dec. 31 —
1930—Mar. 27—
June 30--.
Sept. 24...
Dec. 31. _.
1931—Mar. 25—
June 30-._
Sept. 29—
Dec. 31__.
1932—June 3 0 . Sept. 30—
Dec. 3 1 . . 1933—June 3 0 2 Oct. 253..
Dec. 30--.
1934—Mar. 53—
All b a n k s
54,545
53,852
55,180
55, 289
53,185
54,954
52,784
53,039
51,427
51,782
49,152
45,821
41,963
41,942
41,643
38, 011
38, 646
Member
banks
33, 215
32,284
33,004
33, 865
32,082
33,690
31, 839
32, 560
31,153
31,566
29,469
27,432
24, 755
24,903
24, 803
23,338
23,453
r23, 771
25, 293
i 8,849
8,983
8,916
18,916
9,197
i 9,197
9,507
i 9, 507
10,017
110, 017
10,105
10,020
110,020
10, 022
9,713
12,481
12, 584
13,193
12,507
12,187
12, 067
11,748
10,972
10, 767
10,199
9,666
8,284
7,188
7,020
6,818
4,961
9,711
'5,165
For footnotes see table above.
•- Revised.
NOTE.—Prior to Dec. 30,1933, member bank figures include interbank
deposits not subject to immediate withdrawal which aggregated $103,000,000 on that date.
Date
Total
Other
Mutual
savings nonmembanks ber banks
1929—Mar. 27
June 29
Oct. 4
Dec. 31
1930—Mar. 27
June 30
Sept. 24
Dec. 31
1931—Mar. 25
June 30
Sept. 29
Dec. 31
1932—June 30
Sept. 30
Dec. 31
1933—June 30 2
Oct. 253
Dec. 30
1934—Mar. 53
25,341
25,110
24,951
24, 630
24,223
23,852
23,590
22, 769
22,372
21,903
21,294
19,966
19,046
. - 18, 794
18, 390
14,530
15, 212
8,406
8,315
8,246
8,052
For footnotes see table above.
State
1,186
1,177
1,148
1,119
1,095
1,068
1,054
1,019
998
982
946
878
835
824
805
709
766
857
918
1612
611
1611
609
1609
606
1606
603
1603
600
1600
597
594
1594
594
15,974
15,792
15, 724
15,499
15, 208
14,931
14, 738
14,114
576
13,841
13, 521
13,095
12,123
11,472
11,296
10,980
8,348
581
8,620
JULY
455
FEDERAL RESERVE BULLETIN
1934
REPORTING MEMBER BANKS IN LEADING CITIES
[In millions of dollars]
Loans and investments
Loans and investments
Date
Investments
All
Loans
on se- other
curities loans
Total
Other leading
cities
New York City
Total
Total
Borowings
at F.R.
banks Total
U.S.seiurities
Investments
Loans All
on se- other
curities loans
U.S. seTotal curities
Total
BorBorloans
rowings and in- rowings
at F.R. vest- at F.R.
banks ments banks
Jan.
Jan.
Jan.
Jan.
Jan.
3—
101724..
31-
16,595
16,388
16,447
16, 396
17,121
3,620
3,497
3,486
3.498
3,609
4,765
4,712
4,732
4,713
4,740
8,210
8,179
8,229
8,185
8,772
5,205
5,210
5,223
5,245
5,786
6,707
6,536
6,579
6,569
1,744
1,624
1,620
1,646
1,748
1,670
1,644
1,659
1,666
1,718
3,293
3,268
3,300
3,257
3,520
2,187
2,170
2,185
2,201
2,421
9,852
9,868
9,827
10,135
25
21
21
20
13
Feb.
Feb.
Feb.
Feb.
7._
14.
21.
28.
17,082
17,092
17,494
17,400
3,587
3,531
3,630
3,520
4,713
4,755
4,718
4,665
8,782
8,806
9,146
9,215
5,847
5,867
6,199
6,249
6,964
6,922
7,096
7,006
1,729
1,677
1,769
1,669
1,691
1,734
1,707
1,662
3,544
3, 511
3,620
3,675
2,485
2,448
2,553
2,585
10,118
10,170
10,398
10, 394
12
10
11
12
Mar. 7—
Mar. 14..
Mar. 21..
Mar. 28..
17.425
17,513
17. 526
17,472
3,495
3,593
3,553
3,514
4,673
4,688
4,643
4,647
9,257
9,232
9,330
9,311
6,278
6,229
6,272
6,227
7,069
7,213
7,199
7,193
1,649
1,733
1,687
1,663
1,661
1,673
1,637
1,629
3,759
3,807
3,875
3,901
2,668
2,704
2,717
2,720
10, 356
10, 300
10, 327
10,279
10
10
9
9
Apr.
Apr.
Apr.
Apr.
4...
11..
18..
25..
17, 508
17,611
17,513
17, 471
3,569
3,612
3,580
3,516
4,668
4, 698
4,623
4,604
9,271
9,301
9,310
9,351
6,175
6,234
6,226
6,282
7,296
7,405
7,238
7,138
1,720
1,756
1,723
1,674
1,655
1,675
1,601
1,594
3,921
3,974
3,914
3,870
2,717
2,804
2,742
2,716
10,212
10, 206
10, 275
10, 333
May 2...
May9._.
May 16..
May 23..
May 30..
17, 462
17, 329
17, 288
7, 257
,306
3,577
3,554
3,505
3,468
3,476
4,559
4,568
4,563
4,537
4,550
9,326
9,207
9,220
9,252
9,280
6, 255
6,249
6,254
6,262
6,262
7,142
7,055
7,022
7,001
7,034
1,729
1,718
1,663
1,644
1,646
1,561
1,566
1,569
1,548
1,558
3,852
3,771
3,790
3,809
3,830
2,699
2,727
2,738
2,752
2,760
10,320
10,274
10, 266
10,256
10, 272
3,557
3, 556
3,571
3,529
4,540
4,533
4,484
4,485
9,300
9,281
9,608
9,723
6,276
6,243
6,582
6,665
7,141
7,144
7,211
7,265
1,727
1, 728
1,741
1,711
1,550
1,552
1, 521
1,525
3,864
3,864
3,949
4,029
2,791
2,802
2,873
2,926
10, 256
10, 226
10, 452
10,472
June
June
June
June
' 397
,
' 370
,
,663
',737
6...
13..
20_.
27..
Backfigures.—SeeBULLETIN for August 1933, pp. 519-523.
BROKERS' LOANS
MADE BY REPORTING MEMBER BANKS IN N.Y. CITY
[In millions of dollars. Monthly data are averages of weekly figures]
REPORTED BY THE NEW YORK STOCK EXCHANGE
[Net borrowings on demand and on time. In millions of dollars]
From New
From private
York banks banks, brokers,
and trust com- foreign banking
panies
agencies, etc.
Total
End of month
1933
1934
1933
1934
1933
1934
January...
February. _
March
359
360
311
903
938
981
270
298
247
839
862
873
64
76
108
April
May
June
322
529
780
1,088
1,016
1,082
268
461
973
912
116
104
102
July
August
September.
916
917
897
822
841
806
October...
November.
December.
776
789
706
712
776
Back figures.—See Annual Report for 1932 (table 84).
own account
For account of
out-oftown
banks *
755
919
877
847
779
723
759
712
806
747
741
663
611
631
36
105
122
98
111
106
122
802
975
937
1,016
657
731
736
813
766
845
137
149
148
156
163
165
997
1,011
1,040
1,017
825
840
870
847
164
164
166
166
For
Month or date
1933—June
July
August
SeptemberOctober
NovemberDecember..
1934—January
February...
March
April
May
June
June 6-_
June 13.
June 20.
June 27.
Total
For account of
others
> Member and nonmember banks outside New York City (domestic
banks only).
Back figures.—See Annual Report for 1932 (table 83).
456
FEDERAL RESERVE BULLETIN
JULY 1934
ACCEPTANCES AND COMMERCIAL PAPER
BANKERS' ACCEPTANCES OUTSTANDING (DOLLAR
ACCEPTANCES)
CLASSES OF BANKERS' ACCEPTANCES (DOLLAR
ACCEPTANCES)
[In millions of dollars]
[In millions of dollars]
End of month
Total
outstanding
1932—February.. _
March
April
May. . .
June
banks
For
acFor count
own of for- _, .
aceign lotal
count correspondents
Held
by
others
August
September..
October
November..
December...
76
36
16
4
36
12
3
2
3
4
4
312
335
292
183
98
59
49
43
39
32
40
343
377
455
510
518
563
574
573
605
655
604
175
155
188
225
200
197
198
159
199
268
224
168
222
268
286
318
366
376
414
406
386
380
189
163
115
90
96
70
55
64
52
28
62
1933—January
February...
March
April .
May
June
July
August
_
September..
October
November __
December...
707
704
671
697
669
687
738
694
715
737
758
764
2
307
280
163
13
41
2
1
1
1
18
127
41
30
45
43
36
36
37
40
41
31
3
4
626
325
261
404
505
487
552
499
517
592
599
442
256
201
153
206
229
201
248
252
236
271
273
223
370
124
108
199
276
287
304
247
282
321
326
219
38
42
85
86
115
123
147
154
156
112
138
190
1934—January
February...
March
April
May
771
750
685
613
569
105
56
23
3
4
5
5
4
3
567
581
576
536
507
255
266
252
236
226
312
315
324
299
281
95
108
81
70
59
...
0)
End of month
Own Bills
bills bought
919
911
879
787
747
705
681
683
699
720
710
Tuly._
1
Less than $500,000.
Source: For acceptances outstanding (and held by accepting banks),
American Acceptance Council.
Back figures.—SQQ Annual Report for 1932 (table 91).
ACCEPTANCES PAYABLE IN FOREIGN C U R R E N C I E S HOLDINGS OF FEDERAL RESERVE BANKS
January.. .
February..
March
April
May
June
July
August
September.
October.. _
November.
December .
1931
36,119
23,958
1,063
1,074
1,073
10, 551
34, 371
145, 215
48, 804
33, 501
33,386
33, 429
December -
669
687
738
694
715
737
758
764
77
80
86
95
103
99
98
94
174
168
168
160
171
185
200
207
185
217
255
229
237
253
278
277
9
g
10
4
4
5
4
4
225
213
219
206
199
195
180
182
1934—January.. __ . . .
February
March
April
May
771
750
685
613
569
89
98
103
103
100
225
203
186
164
150
277
261
226
186
164
5
4
3
3
3
175
184
168
158
152
1933—May
June...
July
August
September
October
November .
December
13
41
2
1
1
1
18
127
2
3
6
2
11
(2)
(2)
(2)
1934—January
February
March
April
May
105
56
23
3
Jsjvember.. _ _
_
HELD BY F. R. BANKS
(OWN ACCOUNT) 1
__ .
7
S
1
6
16
1
(2)
(•)
(2)
7
23
2
22
18
11
5
1
21
11
6
1
(2)
1
30
15
7
4
39
2
2
2
4
39
31
16
4
2
(2)
i Total holdings of Federal Reserve banks include a small amount of
unclassified acceptances.
» Less than $500,000.
Back figures.—See Annual Report for 1932 (tables 88 and 23).
COMMERCIAL PAPER OUTSTANDING
[In millions of dollars]
1932
1933
33,444
33,478
30, 778
30, 736
30,837
30, 762
30, 645
30, 834
30,849
30, 659
30, 652
29, 489
29, 036
28,997
24, 788
7,181
6, 981
7,089
6,821
6,199
6,068
5,686
5,841
6,033
Back figures.—See Annual Report for 1932 (table 24).
Based
on
goods
stored
in
foreign
countries or
shipped
between
foreign
points
OUTSTANDING
1933—May
June
July
August
September
October
[In thousands of dollars]
End of month
Based
on goods
stored in
_
United
rJasea Based States
on ex- (ware- Dollar
im
exTotal
ports house
into from credits) change
or
U.S.
US
shipped
between
domestic
points
Held by accepting
333
Held by Federal Reserve
banks
1934
5,977
5,887
5,275
5,070
3,125
5,075
End of month
January
February
March
April
May
June
July
August
September
October
November
December
1931
_
__
_
327
315
311
307
305
292
289
271
248
210
174
118
1932
1933
108
103
106
108
111
103
100
108
110
113
110
81
Back figures.—See Annual Report for 1932 (table 87).
85
84
72
64
60
73
97
107
123
130
133
109
1934
108
117
133
139
141
JULY
OPEN-MARKET RATES
FEDERAL RESERVE BANK RATES
RATES
457
FEDEKAL RESERVE BULLETIN
1934
ON
R E D I S C O U N T S FOR AND
M E M B E R BANKS
ADVANCES
TO
SHORT-TERM RATES IN NEW YORK CITY
[Percent per annum]
Advances under sec.
10b of the Federal
Reserve Act
Rediscounts and advances under sees. 13 and 13a of the
Federal Reserve Act
Average rate Average yield
Prevailing rate on-
Federal Reserve
bank
Rate in
effect on
July 1
2
IX
2y2
2
3
3
VA
VA
3
3
3
2
Boston.
_
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco._
Date established
Feb.
Feb.
Nov.
Feb.
Feb.
Feb.
Oct.
Feb.
Mar.
Feb.
Feb.
Feb.
Previ- Rate in Date established
ous rate effect on
July 1
8,1934
2,1934
16,1933
3,1934
9,1934
10,1934
21,1933
8,1934
16,1934
9,1934
8,1934
16,1934
4
4
4
4
5
4M
4
VA
5
5
4
4
2K
2
3
2K
3M
3K2
3
3
3H
3H
3M
2V2
Oct.
Oct,
Oct.
Oct.
Mar.
July
Oct.
Oct.
Mar.
Mar.
Mar.
Oct.
20,1933
2,1933
20,1933
21,1933
16,1933
15,1933
16,1933
21,1933
14,1933
23,1933
12,1934
19,1933
Call loans 2
Prime
bank- Time
ers'
mercial accept- loans,
90
paper, ances,
days 1
4 to 6
90
months days
Month or week Prime
com-
1933
June
July..
August
September
j
October
November
December
j
!
I
January
February
March
Advances secured by
Discounts and advances
direct obligations of April
under par. 3 of sec. 13
the United States May._
of the Federal Re(last paragraph of sec. June
serve Act
13 of the Federal Re-
1.00
1.00
.98
.75
.75
.75
.94
1.00
1.00
.98
.75
.75
.75
.94
-IX 1.00
1.00
1.00
H-l
1.00
1.00
H-l
1.00
H-l
1.00
1.00
1.00
1.00
1.00
LOO
1.00
1.00
1.00
1.00
1.00
1.00
1.00
LOO
1.00
LOO
%-X H-IX
HrX l -IX
y*
x-x
.26
.35
.26
.11
.13
.38
X l
-m
3
-1M
l
/4-l
X
H- H
H- H
H-
.63
.09
.07
serve Act)
Week endingRate in
effect on
July 1
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
months
1934
RATES ON D I S C O U N T S FOR AND ADVANCES TO INDIVIDUALS, P A R T N E R S H I P S , AND CORPORATIONS
Federal Reserve
bank
IX
-iX
IX
IX
U.S.
Treas-
U.S.
ury
Treas- notes
ury
and
bills,
certifiRe3
New newal
months 3 cates,
3 to 6
_
_
San Francisco.
6
6
6
6
6
5
6
6
6
6
6
6
Date established
Rate in
effect on
July 1
4
Aug. 11,1933
Aug. 10,1933
Aug. 12,1933
Aug. 20,1933
Aug. 10,1933
Mar. 20,1934
Aug. 13,1933
Aug. 10,1933
do....
.
Aug. 20,1933
Sept. 8,1933
Sept. 2,1933
June
June
June
June
June
Date established
Oct.
Feb.
4
Oct.
Oct.
4
Feb.
4
Mar.
4
Oct.
4
Mar.
4H Apr.
Feb.
4
Mar.
4
Oct.
4
20,1933
8,1934
20,1933
21,1933
19,1934
17,1934
16,1933
15,1933
15,1933
23,1934
12,1934
19,1933
1
3
3
2
9
16
23
30
i
i
3-1-1
M- H
W- H
H-l
Stock exchange 90-day time loans.
Stock exchange call loans; new and renewal rates.
Average rate of discount on issues sold by U.S. Treasury within
period.
4
Change of issue on which yield is computed.
«Negative yield.
Back figures.—See Annual Report for 1932 (tables 56 and 57).
RATES CHARGED CUSTOMERS BY BANKS IN
PRINCIPAL CITIES
[Weighted averages of prevailing rates]
BUYING R A T E S O N A C C E P T A N C E S
New York City
[Buying rates at the Federal Reserve Bank of New York]
Maturity
1-15 days
16-30 days
31-45 days
46-60 days
61-90 days
91-120 d a y s . . .
121-180 d a y s . .
Rate in
effect on
July 1
X
Date established
Oct. 20,1933
do
do
do
. do
do . . .
do
NOTE.—Rates on prime bankers' acceptances,
charged for other classes of bills.
8 other northern
and eastern cities
27 southern and
western cities
1932
1933
1934
1932
1933
1934
1932
1933
4.71
4.71
4.72
4.69
April
4 55
May
4.61
June
4.42
July
4.45
August
S e p t e m b e r - 4.30
4.35
October
November... 4.12
4.22
December
4.12
4.11
4.88
4.33
4.24
4.10
3.93
3.97
3.79
3.76
3.52
3.48
3.58
3.43
3.31
3.39
3.42
3.30
5.07
5.13
5.14
5.10
5.14
5.13
5.05
5.12
5.03
4.96
4 88
4 88
4.89
4.84
5.39
5.09
4.99
4.97
4.82
4.68
4.65
4.51
4 54
4.59
4.65
4.49
4.52
4.52
4.39
4.30
5.61
5.61
5.64
5.63
5.64
5.62
5.63
5.68
5.63
5.56
5.55
5.60
5.60
5.56
5.66
5.68
5.66
5.62
5.54
5.53
5.55
5.50
5.42
5.43
Month
Previous
rate
1
1
1
1
1
1
IX
Higher rates m a y be
Back figures.—See Annual Report for 1932 (table 54).
H-l
H-l
H-l
H-l
January
February
March
Back figures.—See Annual Report for 1932 (table 59)8
1934
5.40
5.39
5.40
5.34
5.28
5.19
458
FEDERAL RESERVE BULLETIN
JULY 1934
TREASURY FINANCE
UNITED STATES GOVERNMENT DEBT
MATURITIES
[In millions of dollars]
VOLUME AND KIND OF SECURITY
[In millions of dollars]
Total
End of month (gross
debt)
1932
NovemberDecember.
1933
January...
February..
March
April
May
June
July
August
September.
October
November.
December.
1934
January. __
February..
March
April
May
June
r
Interest-bearing debt
Interest bearing
Total
Noninterest
Bonds Notes C{^H' Bills bearing
20,476
20,448
14,257
14,223
Total Bonds J Notes Certificates
Outstanding June 30, 1934—
Total
20,807
20,805
3,539
3,299
2,038
2,284
331
357
643
642
20,802
20,935
21, 362
21,441
21,853
22, 539
22, 610
23,099
23,051
23,050
23, 534
23,814
20,454
20, 584
20,992
21,087
21,469
22,158
22, 240
22, 723
22,672
22, 669
23,161
23,450
14, 230
14, 230
14,230
14, 230
14, 223
14, 223
14, 239
15,074
15,074
15,074
15, 569
15, 569
3,298 2,285
3,576 2,138
3,575 2,369
3,576 2,363
4,148 2,119
4,780 2,200
4,801 2,246
5,153 1,543
5,151 1,495
5,150 1,493
5.148 1,492
5,125 1, 753
641
641
817
918
979
955
954
953
952
952
952
1,003
34S
350
371
354
385
381
370
376
379
381
373
364
25,071
26, 055
26,157
26,118
26,155
27,053
24, 720
25, 707
25,698
25,599
25, 588
26, 480
15,600
15, 579
15, 579
15, 718
15,695
16, 510
5,626
6,472
6, 925
6,689
6,678
6,932
1,214
1,378
1,378
1,378
1,404
1,404
351
'348
459
519
567
573
2,280
2,278
1,816
1,814
1,812
1,635
Revised.
Bills
26, 480
16, 510
6,932
1,635
1,404
1,456
2,790
945
772
1,330
1,749
4,492
529
834
898
9,612
1,074
2 51
3 1, 246
28
525
992
853
551
Obligations m a t u r i n g :
Before Oct. 1, 1934
Oct. 1-Dec. 31, 1934
J a n . l - J u n e 3 0 , 1935
J u l v 1-Dec. 31, 1935
1936
1937
1938
1939
1941
1943
After 1943
Other obligations i
49
3,142
945
772
1,281
1,749
1,350
529
834
898
9,612
678
278
118
1
Issues classified as of date of final maturity; most issues are callable
at earlier dates. Amount callable before July 1,1935, and not yet called,
$5,801,000,000, including certain pre-war issues that are held as collateral
for circulating notes.
J Approximate amount of 4th Liberties called for redemption Apr. 15,
1934, and not yet redeemed.
3
Approximate amount of 4th Liberties called for redemption Oct. 15,
1934.
< Includes the 2 percent Consols of 1930, which are held as collateral for
circulating notes, and such issues as Postal Savings bonds, retirementfund notes, and adjusted-service certificate-series, in which special funds
are invested.
SUMMARY OF TREASURY OPERATIONS
[In millions of dollars. On basis of daily statement of United States Treasury]
Expenditures
Receipts
Internal revenue
Period
Total i
Fiscal year ending:
Other
Customs
and
miscel- Total«
laneous
General 3
Emergency 4
2,121
2,238
6 6,089
1,057
T46
818
504
858
1,823
445
475
475
4,862
4,845
6 8, 884
3,973
3,404
2,741
768
1,277
4,004
-2,741
- 2 , 607
- 2 , 795
+445
+1, 720
+2,686
+3,052
+4,514
125
352
June 1932
June 1933
June 1934
November
December
Income
tax
Excess of Increase or decrease
during period
receipts
or expendi- General Gross
tures
fund
debt
balance
15
141
67
73
33
128
283
386
235
297
37
76
-158
-34
—165
-35
—6
—1
134
121
283
131
167
306
179
197
333
273
219
342
16
24
181
19
16
147
13
14
136
10
19
133
70
64
67
69
94
106
113
135
146
195
127
158
30
23
24
25
47
33
37
38
39
50
63
41
357
360
439
461
456
494
278
321
339
509
505
703
226
200
273
338
249
388
196
171
248
396
201
227
112
147
157
109
192
82
75
139
81
104
294
463
-223
-239
-156
-331
-289
-188
-99
-123
-6
-236
-286
-361
1932
-55
1933
February
March
April
June
July
August
September
October
November
December
.
. ._
1934
-
-227
-106
+271
-252
+124
+498
-28
+366
-54
-236
+198
-81
-4
+133
+428
+79
+412
+685
+71
+489
-48
0
+484
+280
10
163
972
148
808
38
229
-743
+511
January
+1, 254
23
34
6 3, 024
149
644
188
447
+2,380
+3,364
+984
February
.
232
21
624
160
450
6 435
167
-189
-84
+105
March
.
15
30
305
370
6 199
137
e 2, 684
- 2 , 524
-2,485
-39
April
162
191
350
25
50
556
6 247
-309
—272
+37
May
.
6 411
188
33
310
423
170
749
-338
+560
June
+898
i Total includes trust and contributed fund receipts not shown separately.
> Total includes trust and contributed fund expenditures not shown separately.
* Includes also special fund expenditures and excludes public-debt retirement. Beginning July 1933, on the basis of a new classification of accounts,
certain items formerly included in general expenditures are carried as emergency expenditures.
* Prior to July 1933 emergency expenditures include only net expenditures for the Reconstruction Finance Corporation; other expenditures,
later classified as emergency, are included in general expenditures
6 Includes increment, amounting to $2,808,000,000 in February, $2,000,000 in March, and small amounts in April, May, and June, resulting from
reduction in the weight of the gold dollar.
6
Includes $2,000,000,000 charged against increment on gold and transferred to exchange stabilization fund.
459
FEDERAL RESERVE BULLETIN
JULY 1934
RECONSTRUCTION FINANCE CORPORATION
LOANS, SUBSCRIPTIONS, AND ALLOCATIONS
[Amount outstanding at end of month. In thousands of dollars]
Proceeds not yet
disbursed
Proceeds disbursed, less repayments
M a y 31,
1933
F e b . 28,
1934
M a r . 31,
1934
Apr. 30y
1934 v
M a y 31
1934 v
736,928
83,585
73, 780
110, 257
434
20, 300
7,535
2,125
93,196
4,603
340,855
700, 278
60,141
54, 249
167, 610
499
193,618
13,404
1,270
31,169
2,119
345, 205
5,092
13
657,388
55, 854
51, 700
161, 574
494
193,618
11,731
1,141
24,859
1,924
345,181
4,214
13
627, 460
50,799
38, 575
188, 008
489
193, 618
10, 618
903
16, 717
1,719
344,934
2,764
613,397
45,495
35,929
191, 393
484
193,618
10,323
800
10, 690
1,677
344,716
1,958
9
J u n e 30,
1934 v
Mar. 31
1934
Apr. 30,
1934
LOANS AND SUBSCRIPTIONS
Loans under sec. 5 of the Reconstruction Finance Corporation
Act, as amended:
Banks and trust companies (including receivers, liquidating agents, and conservators) 1
Building and loan associations *
__
Insurance companies
Mortgage-loan companies *
_.
Credit unions
Federal land banks.._
Joint-stock land banks
Agricultural credit corporations
__
Regional agricultural credit corporations
Livestock credit corporations
Railroads (including receivers)
State funds for insurance of public moneys
...
Processors or distributors for payment of processing taxes
Total..
187,815
1,890
160
123,259
208, 091
412
157
105,973
3,044
1,398
1,956
309
5,227
2,169
259
13, 366
1, 473, 598 1, 574, 667 1, 509, 691 1,476,608 1, 450, 489 1,436,208
Total..
Other loans:
Self-liquidating projects, sec. 201 (a) (including repairs to
property damaged by earthquakes, etc.)
Financing exports of agricultural surpluses, sec. 201 (c)—.
Financing agricultural products, sec. 201 (d)
Commodity credit corporation
Loans on preferred stock of banks
Loans on preferred stock of insurance companies
Loan to Secretary of Agriculture for purchase of cotton. _
Loans to drainage, levee, and irrigation districts
598,924
40, 442
34, 748
192,150
433
193, 618
9,308
800
7,199
1,717
353, 385
3,476
323,664
331, 826
128,851
11,361
4,830
269,755
8,286
7,500
126,128
10, 029
4,662
262,207
6,380
27,231
2,723
~i~250'
71,220
10, 076
4,371
153, 525
14,745
4,375
Total
88, 560
12, 752
4,089
167,945
19,062
15, 875
93,009
13, 948
4,114
202, 559
21, 353
15,875
2,525
2,643
4,156
4,636
30,123
31,006
726
280, 551
297, 525
312, 439
355, 493
460, 706
440, 412
257,438
192,947
354,918
221, 963
393,872
245,639
413,473
271,501
498,106
295, 248
155,910
149,362
140,498
128, 252
450, 385
576, 881
639,511
793, 354
305, 272
268,750
260,
24, 233
24,233
Total loans and subscriptions..
82,666
12,330
4,257
163,078
16,676
15,875
2,414
31, 204
Subscriptions:
Subscriptions for preferred stock of banks
Purchases of capital notes and debentures of banks.
80,195
11,073
4,444
161, 772
16,167
4,375
1,529,035
2, 285, 778 2, 367,122 2,413, 644
684,974
2,447,902
2, 585,055 1,089, 642 21,040,987
ALLOCATIONS
For relief:
Federal Emergency Relief Act of 1932..
Federal Emergency Relief Act of 1933..
Total
_.
Total allocations
Total loans, subscriptions, and allocations.
299,011
478, 244
299, 003
486, 687
487, 061
298, 562
487,979
298,561
493,458
15
12,974
15
12,939
295,924
Total. .
To other Government agencies:
To Secretary of the Treasury for—
Purchase of stock of Federal home-loan banks
Purchase of stock of Home Owners' Loan Corporation.
To Land Bank Commissioner
To Federal Farm Mortgage Corporation
__.
To Secretary of Agriculture:
Crop loans
Reallocated as capital regional agricultural credit
corporations
Reallocated to Governor of Farm Credit Administration
294, 845
1,079
777, 255
785, 690
785,059
786, 541
792, 019
12,989
12,954
27666
79,146
39,000
147, 600
55,000
79, 646
59,000
147, 600
55,000
80, 446
69,000
147, 600
55, 000
80,946
114,000
147,600
55, 000
81,446
154, 000
147, 600
55, 000
45, 095
141,000
97,400
44,295
131,000
97,400
115, 000
115, 000
115,000
115, 000
115,000
115, 000
41,000
44, 500
44,425
44,475
44, 500
44, 500
75
25
40, 500
40, 500
40,500
40, 500
40, 500
520, 746
541,171
552, 021
283, 570
272, 720
1, 430, 064 296, 559
285, 675
—»
36, 870
194, 870
592,720
490, 794 1, 298, 001 1, 326,860 1, 337,980 1,385,675
2,019,829 3, 583, 779
3,e
3, 751,624 3,836,662
638, 046
4,015,119 1,386,202 21,326,662
v Preliminary.
1
Loans to aid in the reorganization or liquidation of closed financial institutions on Apr. 30, 1934, amounted to $346,239,000 representing proceeds disbursed, less repayments, and $199,010,000, not yet disbursed.
2
In addition the corporation as of Apr. 30, 1934, had approved in principle loans of $186,994,000 and subscriptions of $114,386,000 upon the performance of specified conditions.
Back figures.—See BULLETINS for December 1933, pp. 738-9, and February 1934, pp. 103 and 132.
460
FEDERAL RESERVE BULLETIN
JULY
BOND PRICES
STOCK PRICES
Other bonds l
United
States
ment
bonds
1934
Year, month, or date
Corporate
Corpomunicipal
(high- Total Indus- Rail- Utility
trial road
grade)
Preferred Common stocks (index, 1
stocks
(industrial highIndus- Rail- Utility
Total
grade)
trial
road
Year, month, or date Govern- rate and
Number of issues
60
20
20
20
100.3
101.9
102.8
103.7
104.4
104.7
81.1
84.0
86.8
89.6
89.9
87.9
86.5
82.6
83.6
88.3
92.9
95.1
97.0
97.6
99.0
69.4
73.4
77.7
81.5
80.8
77.5
75.3
72.1
73.6
78.5
84.0
84.8
87.0
86.1
86.3
63.2
69.2
72.8
75.6
75.9
74.5
72.7
70.5
71.5
75.6
79.8
80.5
82.8
82.5
82.5
64.8
70.5
76.1
82.2
81.2
76.8
73.5
68.5
72.2
79.0
85.8
86.4
88.7
86.9
87.1
80.5
80.6
84.2
86.8
85.3
81.4
79.7
77.3
77.1
80.9
86.5
87.7
89.7
89.1
89.4
104.6
105.0
104.7
104.8
98.1
99.0
99.4
99.4
85.8
86.6
86.8
86.4
82.3
82.6
82.7
82.6
86.4
87.8
87.7
86.9
88.7
89.4
89.9
89.8
2 15
1932 average.
1933 average.
99.2
102.2
103.2
103.3
102.9
103.0
102.9
100.5
100.0
July...
August
September..
October
November..
December..
1934—January
February. __
March
April
May
June
June 6
June 13
June 20
June 27
Number of issues..
Year, month, or
date
U.S. Municipal a
Treas- (highury
grade)
Number of issues
=
109.7
112.5
112.9
112.0
109.8
107.5
107.7
77
84
79
81
76
77
79
97
98
87
80
75
70
67
1934—January...
February.
March
April
May
June
111.2
116.5
117.5
120.2
121.0
122.1
84
88
85
88
80
81
73
81
76
76
70
72
79
78
70
73
73
72
121.4
122.2
122.2
122.7
June6__.
June 13_.
June 20..
June 27_.
Source.—Standard Statistics Co.
CAPITAL ISSUES
[Long-term; i.e., 1 year or more. In millions of dollars]
New issues
Domestic
Year and month
Total
(doCorporate
Formestic
State
and
eign
and
for- Total i mu- Bonds
eign)
nici- and Stocks
pal notes
Refunding
issues
(domestic
and
foreign)
Baa
Aa
15
30
30
30
30
1932 average..
1933 average..
1933—March
April
May
June
__
July
_
August
September..
October
November...
December....
3.66
3.31
4.65
4.71
5.01
4.49
5.97
5.23
7.20
6.09
9.30
7.76
3.44
3.43
3.31
3.22
3.20
3.21
3.20
3.22
3.46
3.53
4.88
5.05
5.27
4.71
4.60
4.54
4.59
4.60
4.89
4.89
4.68
4.78
4.63
4.46
4.36
4.30
4.35
4.34
4.54
4.50
5.61
5.81
5.40
5.09
4.83
4.77
4.96
4.97
5.35
5.27
6.64
6.85
6.29
5.88
5.58
5.51
5.70
5.76
6.22
6.21
8.91
9.12
7.74
7.07
6.62
6.77
7.27
7.49
7.98
7.75
1934—January...
February.
March
April
May
June
3.50
3.32
3.21
3.12
3.01
2.94
4.67
4.48
4.24
4.11
3.93
3.73
4. 35
4.20
4.13
4.07
4.01
3.93
5.00
4.70
4.55
4.43
4.37
4.30
5.72
5.24
5.12
4.97
4.96
4.96
7.01
6.27
6.26
6.01
6.05
6.06
June
June
June
June
2.98
2.94
2.92
2.92
3.80
3.75
3.70
3.66
3.93
3.93
3.93
3.91
4.35
4.31
4.29
4.26
5.00
4.95
4.92
4.93
6.11
6.05
6.00
6.05
6__
13 _
20 _
27-
37
33
46
66
Corporate, by ratings 3
Aaa
351
421
96.1
104.8
» Price indexes derived from average yields.
2
Now 3 Liberties and 12 Treasuries. New Treasury issues were added
Aug. 15, 1933, Nov. 1, 1933, Apr. 16, 1934, and June 15, 1934.
3
45 corporate and 15 municipal.
Source.—For United States Government bonds, Federal Reserve Bank
of New York; for other bonds, Standard Statistics Co.
BOND YIELDS 1
20
1932 average..
1933 average..
1933—June
July
August
September.
October
November.
December..
1925
1926
1927
1928
1929
1930
1931
1932
1933
-.
1933—June
July . .
August
September..
October
November..
December..
1934—January
February...
March
April
May
June
6,201
6,314
7,556
8,040
10,091
6,909
'3,089
1,165
722
5,125
5,189
6,219
6,789
9,420
6,004
2,860
1,157
710
1.352
1,344
1,475
L, 379
1,418
L, 434
1.235
755
484
2,452
2,667
3,183
2,385
2,078
2,980
1,240
305
40
1,153
1,087
1,474
2,961
5.924
1,503
311
20
120
1,076
1,125
1,337
1,251
671
905
229
8
12
925
1,046
2,220
1,858
1,422
711
949
583
337
117
122
46
64
59
88
57
110
117
46
64
59
88
3
0
0
0
0
0
0
9
53
14
9
3
6
16
7
5
0
0
0
0
0
106
45
7
30
1
2
57
98
28
32
37
56
82
41
48
79
97
143
103
123
48
79
97
143
103
123
37
59
81
100
61
102
0
12
9
24
26
0
6
1
5
5
3
9
0
0
0
0
0
0
42
8
50
93
39
183
18
r Revised.
i Includes issues of Federal land banks and Federal intermediate credit
banks, not shown separately.
Sources.—For domestic issues: Commercial and Financial Chronicle,
1
for foreign issues (issues publicly offered) annual totals are as finally
Monthly data are averages of daily or weekly figures.
8
reported by Department of Commerce, while monthly figures are as
Standard Statistics Co.
compiled currently and are subject to revision.
«Moody's Investors' Service.
Back figures.—See (for figures of new issues—annual and quarterly
< New issue added June 15, 1934; see BULLETIN for June p. 322, for
basis) Annual Report for 1932 (table 103).
earlier changes.
461
FEDERAL RESERVE BULLETIN
JULY 1934
PRODUCTION, EMPLOYMENT, CAR LOADINGS, AND COMMODITY PRICES
[Index numbers; 1923-25 average=100. The terms "adjusted" and "unadjusted" refer to adjustment for seasonal variation]
Industrial production * *
Construction contracts awarded (value) »
Factory employment *
Year and
month
Manufactures
Total
Minerals
Total
Residential
All other
Factory
pay
rolls»
Freight-car
loadings * *
Unad- A d - Unad- A d - Unad- Ad- Unad- Ad- Unad- Ad- Unad- A d - Unad- A d - Unad- Unad- Adjusted justed justed justed justed justed justed lusted justed justed justed iusted justed justed justed justed justed
19191920
1921
1922
1923
1924
1925
19261927
1928
1929
1930
1931
1932
1933
84
87
67
86
101
94
105
108
106
112
119
95
80
63
76
83
87
67
85
101
95
104
108
106
111
119
96
81
64
76
77
89
70
74
105
96
99
108
107
106
115
99
84
71
81
44
30
44
68
81
95
124
121
117
126
87
50
37
13
11
63
63
56
79
84
94
122
129
129
135
117
92
63
28
25
79
90
65
88
86
94
120
135
139
142
142
125
84
40
37
97
117
76
81
103
96
101
104
102
102
109
89
68
46
49
107
108
82
91
104
97
99
101
99
99
105
92
77
64
69
Commodity
)rices5
139
154
98
97
101
98
104
100
95
97
95
86
73
65
66
84
91
79
87
100
97
103
106
103
103
106
92
75
56
68
1930
November
December
84
76
86
84
82
74
85
82
96
89
92
93
68
59
76
73
46
37
48
43
86
77
99
98
85
82
85
83
77
75
86
74
84
84
81
80
1931
January..
February.
March
April
May
June
July
August-„
September
October-.
November
December
82
87
89
90
89
83
80
78
77
75
72
68
83
86
87
88
87
83
82
78
76
73
73
74
81
88
91
91
90
83
79
77
76
72
70
66
83
86
87
87
87
82
82
78
75
71
71
72
87
84
82
83
84
86
86
82
83
90
84
79
89
87
89
91
87
87
86
79
78
83
81
84
58
68
77
82
78
74
68
63
59
52
43
30
71
79
77
73
65
63
61
59
59
55
49
38
37
42
50
52
47
41
36
32
32
29
26
20
44
47
47
44
40
37
35
33
32
30
27
23
75
89
98
107
104
101
94
87
81
71
57
39
93
104
100
96
85
84
82
81
80
76
67
50
80
80
81
81
80
78
77
77
77
74
72
71
82
81
81
81
80
79
78
77
75
73
72
72
70
74
76
74
73
70
C
66
66
63
61
58
58
74
82
80
80
80
79
78
77
76
76
1932
January. .
February.
March
April
May
June
July
August...
September
October __
November
December
71
71
68
64
61
59
56
59
67
68
65
60
72
69
67
63
60
59
58
60
66
67
65
66
70
70
66
63
60
58
55
58
66
67
63
58
71
68
64
61
59
58
57
59
65
66
63
64
74
75
78
72
65
62
63
66
74
80
78
73
77
78
85
80
67
64
65
65
71
74
75
77
25
23
26
31
31
32
31
32
30
28
24
22
31
27
26
27
26
27
27
30
30
29
27
28
16
15
16
16
14
12
12
11
12
12
10
8
19
17
15
14
12
11
12
12
12
10
9
33
30
35
43
45
47
46
48
45
41
35
33
41
35
36
38
37
39
40
45
44
43
41
43
69
70
68
66
63
61
59
60
63
64
63
62
70
70
68
66
64
62
60
60
62
63
63
62
54
55
53
50
47
43
40
41
43
45
43
42
January..
February.
March....
April .
May
June
July
August-.September
October. _
November
December
64
64
60
67
79
91
96
90
85
78
72
69
65
63
59
66
78
92
100
91
84
'76
72
75
63
63
58
68
80
93
97
89
84
'76
70
67
63
61
56
' 65
r 77
93
101
91
'83
76
71
73
71
76
74
65
76
82
89
94
93
88
84
80
73
79
81
72
78
84
90
91
87
81
81
85
18
16
14
16
19
21
24
25
30
35
42
45
22
19
14
14
16
18
21
24
30
37
48
57
7
7
8
11
13
14
13
12
12
12
12
11
8
8
8
10
11
13
13
12
12
12
13
13
27
23
18
19
24
27
32
36
45
53
66
73
33
27
18
17
20
23
28
33
45
57
76
93
60
61
59
60
63
67
72
76
80
80
76
74
61
62
59
60
63
67
73
76
78
78
76
75
1934
January..
FebruaryMarch
April
May
77
83
87
88
78
82
85
86
,86
75
'82
86
90
,89
76
80
82
85
,86
85
88
91
81
87
88
91
100
90
89
40
38
33
36
32
49
44
33
32
26
10
10
12
14
13
12
12
11
12
11
64
60
50
54
47
80
70
51
49
39
73
78
81
82
82
75
78
81
82
82
74
75
77
79
77
78
76
78
78
70
61
72
69
69
68
69
73
72
72
72
71
70
70
69
58
69
58
57
53
52
51
53
61
65
58
52
64
62
61
59
54
52
51
51
54
57
57
68
67
66
66
66
64
64
66
65
65
64
64
63
40
40
37
39
43
47
51
57
59
59
56
55
51
51
48
61
c 55
« 61
66
65
68
66
56
64
60
53
c 55
«62
66
61
60
68
'59
61
60
60
60
63
66
60
70
71
71
71
71
54
61
65
67
67
68
61
63
60
63
64
64
66
62
63
72
74
74
73
74
77
76
1933
'56
r
Preliminary.
* Average per working day.
Revised.
e Corrected.
For indexes of groups and separate industries see pp. 500-501; for description see BULLETIN for February and March 1927; for revised figures
back to 1919 see BULLETIN for September 1933, pp. 584-585.
2 3-month moving average of F. W. Dodge Corporation data centered at second month; for description see BULLETIN for July 1931, p. 358. For
back figures see Annual Report for 1932 (table 105).
3 Revised indexes. The indexes for factory employment and pay rolls unadjusted for seasonal variation are compiled by the Bureau of Labor
Statistics. For description and back figures see BULLETIN for May 1934, pp. 270-271. For description and back figures for the seasonally adjusted
index of factory employment computed by the Federal Reserve Board, see BULLETIN for June 1934, pp. 324-343.
« For indexes of groups see p. 462; for back figures for total see Annual Report for 1932 (table 105) and for groups see BULLETIN for February
1931, p. 108.
* Index of Bureau of Labor Statistics; 1926=100. Index numbers for groups of commodities (also data b week
1
462
FEDERAL RESERVE BULLETIN
JULY 1934
MERCHANDISE EXPORTS AND IMPORTS
[In millions of dollars]
Merchandise imports J
Merchandise exports *
Excess of exports
Month
1930
January
February
March
---
1932
1931
1934
1933
1930
1931
1932
1933
1934
1931
1930
1932
1933
1934
411
349
370
250
224
236
150
154
155
121
102
108
172
163
191
311
282
300
183
175
210
136
131
131
96
84
95
136
133
158
100
67
69
66
49
26
15
23
24
25
18
13
37
30
33
April
May
June -_
332
320
295
215
204
187
135
132
114
105
114
120
179
308
285
250
186
180
173
127
112
110
88
107
122
147
*155
24
35
44
29
24
14
9
20
4
17
7
2
33
P160
July
August
September
267
298
312
181
165
180
107
109
132
144
131
160
221
218
226
174
167
170
79
91
98
143
155
147
46
79
86
6
2
10
27
17
34
1
—23
13
October
November
December
327
289
275
205
194
184
153
139
132
193
184
193
247
204
209
169
149
154
105
104
97
151
129
134
80
85
66
36
44
30
48
34
35
42
56
59
Year
3,843
2,424
1,611
1,675
3,061
2,091
1,323
1,450
782
334
288
225
p Preliminary.
i Including both domestic and foreign merchandise.
* General imports, including merchandise entered for immediate consumption and that entered for storage in bonded warehouses.
Back figures.—See BULLETIN for January 1931, p. 18.
DEPARTMENT STORES—SALES, STOCKS
FREIGHT-CAR LOADINGS, BY CLASSES
[Index numbers; 1923-25 average=100]
[Index numbers; 1923-25 average=100]
1934
Index of stocks (end of
month)
Index of sales 1
Jan.
Without
Adjusted
Without
Adjusted
for seasonal seasonal ad- for seasonal seasonal adjustment
variation
justment
variation
Month
1933
1934
1933
1934
1933
1934
1933
January
February
March
60
60
67
69
71
77
49
49
50
57
59
73
58
57
54
66
66
65
52
54
55
59
63
67
April .
Mav
June .
67
67
68
77
77
68
67
64
73
77
53
55
57
65
66
55
56
56
68
67
July
August
70
77
70
49
59
73
60
64
70
70
65
69
77
75
121
70
69
65
77
78
62
October
November
December
_
Year
67
61
p Preliminary.
i Based throughout on figures of daily average sales—with allowance
for changes from month to month in number of Saturdays and for 6
national holidays: New Year's Day, Memorial Day, Independence Day,
Labor Day, Thanksgiving Day, and Christmas. Adjustment for seasonal variation makes allowance in March and April for the effects
upon sales of changes in the date of Easter.
Back figures.—See BULLETIN for November 1930, p. 686; Annual Report
for 1932 (table 105).
Mar.
Apr.
May
Adjusted for seasonal variation
Total
Coal
Coke
Grain and grain prod
ucts
Livestock
Forest products
Ore
_
Miscellaneous
Merchandise»
56
62
73
1934
Feb.
64
68
61
64
68
51
30
34
69
70
68
78
76
48
30
34
67
67
66
87
71
62
68
50
63
69
58
75
46
32
41
67
66
74
52
31
38
66
65
75
52
33
39
68
65
Without seasonal adjustment
Total
Coal
Coke
Grain and grain products
Livestock
Forest products
OreMiscellaneousJ
Merchandise
58
77
67
61
85
86
63
82
71
60
57
48
63
61
58
65
53
26
8
55
65
65
46
31
8
58
65
63
40
33
10
64
57
48
33
19
68
67
61
49
35
59
70
67
67
1
In less-than-carload lots.
Based on daily average loadings. Source of basic data: American
Railway Association.
Back figures.—See BULLETIN for February 1931 .pp. 108-110.
JULY
FEDERAL RESERVE BULLETIN
1934
463
FOREIGN BANKING AND BUSINESS CONDITIONS
ANNUAL REPORT OF THE NETHERLANDS BANK
The annual report of the Netherlands Bank regard to the success of the American Governfor the year ended March 31, 1934, was sub- ment's own policy, which is directed toward
mitted to the general meeting of shareholders raising prices. Raising the price of gold and
by the president of the bank, Dr. L. J. A. Trip, in this way exerting new pressure on world
on June 12, 1934. Sections of the report are prices would inevitably react unfavorably on
given herewith.1
the American price level.
Formation of the gold bloc.—The formation
Recent experience has once more demonand maintenance of the nucleus of gold stand- strated that gold cannot be dispensed with as
ard countries, which were organized into the the basis for an international monetary system.
so-called gold bloc following the failure of the Even under existing abnormal conditions, with
London Economic Conference, is of great impor- their highly confusing influence on commerce
tance for the interests of the world as a whole and exchange rates, gold still constitutes in the
and for those of individual countries, whether last analysis the instrument through which valthey belong to this group or not. In existing ues are mutually compared and continues to be
circumstances its continuance is imperative for the basis for international transactions. In
gradual world improvement. Failing this, not one of the countries that went off gold was
confidence would suffer, monetary chaos would the permanent breaking of the tie with gold set
be complete and a further downward move- up as a principle for future monetary policy.
ment of exchange rates would begin. The On the contrary, these countries have connumber and extent of direct trade barriers stantly endeavored to increase their gold stocks.
would inevitably increase still more and inter- There would be no sense in this if they did not
national commodity exchanges wxould be sub- intend to return to gold. Conferences as to the
jected to renewed pressure.
manner in which such a return may be accomIt is now generally recognized that the effects plished and as to the conditions that will have
of the fluctuations in the value of the non-gold to be fulfilled in order to insure the future percurrencies are among the most serious obstacles manence of the gold standard should be conto world trade. This recognition is one cause sidered the first and most important aim of inof the increased desire the world over to return ternational politics.
to exchange stability. A resolution adopted
For such conferences and for assistance in
by the International Chamber of Commerce carrying out the principles and regulations
and published in March 1934 is a significant which must be applied if the gold standard is
expression of this desire. Again, the resolu- to function adequately, the Bank for Internation adopted by representatives of 23 central tional Settlements stands ready as the approbanks at Basle on May 14, 1934, states that priate institution. The Bank for International
the first aim of their monetary policies is the Settlements will be in a position to render very
speediest possible return to stability of ex- valuable assistance in the restoration and in the
change rates on the basis of the gold standard. functioning of an international monetary sysThis policy is also urged in the report of the presi- tem based on gold.
dent of the Bank for International Settlements.
Foreign trade.—Since the Netherlands is to a
It is to be hoped that this view may be great extent dependent on international trade
adopted by the American Government, which it was to be expected that the unfavorable facon January 31, 1934, fixed the gold value of the tors in the international situation would exert
dollar at 59.06 percent of its former value, a strong influence on our domestic economy.
reserving the right to depreciate further up to The value of our aggregate foreign trade fell
a maximum of 50 percent. It would be most from 2,145,000,000 florins in 1932 to 1,935,helpful if the right to depreciate further were 000,000 florins in 1933, that is, a decline of
definitely renounced and that uncertainty 210,000,000 florins. Of this amount 90,000,000
eliminated. And this would be true not only florins represents imports and 120,000,000 florin regard to international affairs, but no less in ins represents exports. The deficit in the bal* Taken with some textual revision from the official English version ance of trade rose from 453,000,000 florins in
published by the Netherlands Bank. In addition, the report contains 1932 to 483,000,000 florins in 1933.
sections on world trade, international monetary developments, the
London Conference, personnel, etc., together with tables showing the
The decline in the foreign trade of the Netheroperations of the bank in detail. For earlier reports see Bulletins for
lands is not surprising in view of the policies of
July 1933, September 1932, August 1931, etc.
464
FEDERAL RESERVE BULLETIN
isolation which were followed to a greater or
less extent by all countries. Moreover, the
smaller countries such as Holland, which have
but a limited domestic market and so have
adapted their economic organization in large
measure to international trade, are especially
hard hit by the shrinking of that trade. It
should not be forgotten, however, that the decline in Holland's trade was less than the
world's average. The value of Dutch trade
fell 59.2 percent below the corresponding figure
for 1929, whereas the percentage for the world
as a whole was 62.8 percent. The percentage
of the decline in volume for the Netherlands
amounts to 22.1 percent, for the world as a
whole to 30 percent.
From the available data it would appear that
economic conditions in Holland are becoming
settled at a depression level slightly above the
lowest level prevailing at the beginning of 1933.
Certain measures—in particular assistance to
agriculture and the quota system—have led
Dutch industries to concentrate more on the
requirements of the domestic market. The
same thing has- happened in most other countries. Although this may be necessary under
the inescapable pressure of circumstances, the
fact remains that this development is artificial
in character and fraught with grave dangers.
Those countries will eventually be the strongest
which complete the inevitable process of readjustment as soon as possible, and make this the
basis for their policy. It is true in existing
circumstances that in no country in the world
can economic forces be allowed to have free
play; nevertheless, it should be emphasized
that no country in the world can in the long
run escape the influence of the changed conditions or afford to maintain a level of prices and
a standard of living which are considerably
above those of the majority of countries which
compete in selling their products in the markets
of the world.
Process of readjustment in the Netherlands.—It should not be supposed, however,
that the process of adaptation has made no
progress in the Netherlands. Nor do I agree
with those who apparently can visualize no
form of readjustment except by way of direct
government action or devaluation of the currency, even though they admit that the latter
measure is in itself inadequate to effect the
required improvement.
Much, in fact, has been done during 1933 in
particular. The realities of the situation
forced through measures which before had been
thought impossible. The financial position of
JULY
1934
public bodies has been fully revealed, and the
reorganization of that position vigorously
undertaken. The burden of the national debt,
both of the Netherlands and of the Dutch East
Indies, has been substantially reduced by means
of large-scale conversions. In business enterprises the cost of production has in many cases
been reduced to such an extent that equilibrium
has been achieved or approximated.
It is nevertheless a fact that the process
under way has not yet been completed. The
public finances must yet cover the last stretch
of the road to equilibrium. Taxation has been
raised to a level which is too high to admit of
the necessary formation of new capital. Public expenditure, even yet, continues at a level
which is higher than the national income
justifies. In other ways Holland's economic
life shows various symptoms of rigidity and
lack of balance which prevent or hinder readjustment. This is reflected especially in the
volume of unemployment and in the contracted
scale of Dutch exports.
Statistics of unemployment and exports show
that further steps should be taken to reduce
prices and costs of production. Although the
root of the evil lies in the policy of isolation
followed by other countries, it cannot be denied
that the price level in Holland is higher than in
most other countries. The Netherlands will
never be able to afford a policy of isolation.
Its limited domestic market, its economic
structure, its geographical position, the character of its population, and its long-established
relations with foreign countries require the
maintenance and expansion of its foreign trade.
The Netherlands Bank.—During the past
financial year the Netherlands Bank, without
undue difficulty, has performed its functions as
a central bank and a credit institution in accordance with the banking and monetary laws
of the Netherlands.
The primary function of the bank is to
maintain the gold value of the national currency. In the exercise of this function the
bank had to contend with the unrest aroused
by the unfavorable development of monetary
conditions abroad and by the arguments for
abandoning the gold standard which were
urged by certain groups at home. The firm
attitude of the Dutch Government and the
cooperation of other countries that have
rejected monetary experiments as a means for
fighting the crisis made it possible to banish
that unrest. Furthermore, confidence in the
guilder increased steadily as the repeated attacks on our currency were repulsed and hasty
JULY
1934
FEDERAL RESERVE BULLETIN
predictions that it would be impossible to
maintain the gold standard were proved false
by events. The bank has steadily adhered to
those principles which, if generally adopted
and. put into practice, would allow the international gold standard to fulfill all reasonable
requirements. The bank has also seen to it
that its demand liabilities were reduced in
proportion to the loss of gold that it suffered
in times of unrest and more recently when the
gold content of the American dollar was lowered. The high degree of liquidity of the
private banks was of great assistance in this
endeavor.
The private banks also cooperated with the
Netherlands Bank by refusing to lend their
funds for financing transactions directed against
the guilder. For the same purpose the bank
raised the discount rate whenever money market developments created a situation in which
increased demands on the credit facilities of
the bank for gold purchases from the bank were
to be expected.
These policies enabled the bank to keep the
gold cover against demand liabilities at nearly
the same level. The bank's gold stock at the
beginning of the past financial year amounted
to 949,069,000 florins. Owing to the unrest
aroused by the London conference it dropped
to 732,520,000 florins on June 29, 1933. When
conditions became more normal again gold
flowed back to the Netherlands so that on
January 9, 1934 the gold stock totaled 923,461,000 florins. Afterward we lost a considerable
amount of gold in consequence of the sudden
devaluation and stabilization of the American
dollar. As a result, at the close of the financial
year on March 31, 1934, the gold stock had
declined to 787,604,000 florins. On the dates
mentioned above the gold cover against aggregate demand liabilities was 80.12, 71.46, 81.21,
and 77.52 percent, respectively, showing the
highly liquid position of the Netherlands Bank
and that of the private banks. In spite of
heavy fluctuations in the gold stock, the
changes in the percentage of the gold cover
remained within narrow limits. During the
year the gold stock showed a loss of 161,465,000
florins, whereas the percentage decline in the
gold cover was only from 80.12 to 77.52 percent.
The developments reflected in the figures
given above prove beyond all doubt that the
bank ought not to be hampered in its fundamental task of maintaining the gold value of
the guilder. Not only in the present times of
unrest and uncertainty, but also in normal cir-
465
cumstances this task should be the first consideration of the bank.
The losses of gold were the result of abnormal
conditions causing sudden capital movements.
As soon as these conditions changed, equilibrium was restored and the foreign exchange
rates fell below the gold export point. It
should be remembered that Holland has at its
disposal a gold stock which is far in excess of
normal requirements. This stock includes not
only the gold holdings of the Netherlands Bank,
but in addition, very substantial holdings in
the hands of corporations and private persons.
According to available figures these holdings
have declined slightly during the past financial
year.
Significance of the gold movements.—It is
evident that the bank's gold stock is liable to
rather sharp fluctuations. As a result of the
monetary crisis, gold has become practically
the only medium for the settlement of international balances. Sometimes in the past tho
bank was called upon to furnish considerable
amounts for that purpose; but as a first "line
of defense77 it can better use foreign bills and
balances. Thus during the first quarter of 1929
the bank utilized these resources to an amount
of no less than 200,000,000 florins before it
had to draw upon the gold stock. At present
only gold is available and it is entirely rational
and in harmony with the principles of the gold
standard that it should be used for its essential
purpose. It is one of the deplorable consequences of the international confusion, and
at the same time it is an evidence of the great
importance that in practice still attaches to
gold in spite of the criticism heaped upon it
by various groups, that this use of gold to
discharge the very function for which it is held
is often considered dangerous to the stability
of a national currency, whereas the influence
of gold withdrawals on the maintenance of
stability is not taken into account. The importance of gold lies in its use for effecting international settlements and for bridging over
the time required for adjustment to changed
conditions. Hoarding and withdrawing from
use considerable quantities of gold, as practiced
at present in the countries that have abandoned
the gold standard, are inconsistent with that
real significance. The much abused expression
"gold sterilization" would be appropriate here
inasmuch as this gold is denied its natural
function, namely, acting as a link between the
different currencies and as a means for international settlements.
466
FEDERAL RESERVE BULLETIN
The German transfer problem.—The Netherlands Government by admitting extra imports
from Germany has been able to secure the full
transfer of interest falling due up to July 1,
1934. The Swiss Government has made a similar arrangement. Other creditor countries
have raised objections against these arrangements on the ground that they constituted a
discrimination in favor of the Dutch and Swiss
creditors at the expense of other creditor
countries.
These arguments are untenable. There was
no difference of opinion among the creditors as
to the fact that the transfer difficulties arose
mainly out of the decline in the surplus of
Germany's trade balance in consequence of the
recession of international trade. On the basis
of an estimated available surplus the creditors
decided what Germany could transfer. No
account was taken of the fundamental cause of
the difficulties and no provision was made for
removing this cause.
The charge of discrimination was unreasonable as applied to the Netherlands, for in 1932,
before the transfer difficulties began, the excess
of Dutch imports from Germany over German
imports from the Netherlands amounted to
not less than 223,289,000 florins; thus the
value of our imports from Germany was 226
percent of the value of our exports to that
country. Thus, the volume of foreign exchange
which the Netherlands made available to Germany not only sufficed for the transfer in full
of the amounts due on account of interest and
redemption of Dutch claims, but also produced
a very considerable surplus for transfer to
creditors other than Dutch.
Under the general transfer agreement the
Dutch Government was willing to allow extra
imports from Germany to make up what was
lacking of the 100 percent of the interest to the
Netherlands. Two conclusions can be drawn
from this. First, although the Netherlands
was in no way responsible for the conditions
that led to the transfer difficulties, as the trade
figures quoted for 1929 plainly show, it nevertheless adopted measures which would help to
remove the cause of those difficulties. Second,
the measures adopted could not prejudice the
claims of creditors other than Dutch nationals,
because the additional amount of foreign exchange required was supplied by the Netherlands itself.
Finally, when one considers that the German
Government was prepared to conclude with
other creditor countries arrangements similar
to those made with the Netherlands and with
JULY 1934
Switzerland one must conclude that it is
neither correct nor reasonable to talk of discrimination in favor of those two countries.
The conclusion as to possible future developments is obvious. If, as a result of a reduction
of the amounts transferred, the Netherlands
were forced to curtail their imports from
Germany either by public measures or as the
result of a decrease in the national purchasing
power, the situation would be aggravated instead of alleviated and other creditor countries
would also suffer the unfavorable effects.
Transfer agreements between Germany and
the Netherlands.—At the request of the authorities concerned the Netherlands Bank assisted
in carrying out the agreements which the
Dutch and German Governments concluded
on October 28, 1933 and February 10, 1934 for
the payment of the claims of Dutch creditors on
Germany on account of interest, dividends, and
other sums due in the second half of 1933 and
during the first half of 1934, respectively. For
this purpose we opened in our books a "Sonderkonto fur zusatzlichen Transfer" (transfer
account) in the name of the Reichsbank..
This account is credited with the proceeds of
the special imports as specified by the Governments in the agreements. To the debit of this
account creditors resident in the Netherlands
are paid that part of their claims which they
would not receive if the special German-Dutch
agreements did not exist. The verification of
ownership required in this connection with
regard to the claims represented by bonds, is
done by the Association of Stockbrokers.
According to the data which we receive from
this organization, we debit the transfer account
and remit the funds required either to the paying agents of German securities or—in special
cases—to the Amsterdam Bankers' Association
in their capacity of Agent of the Deutsche
Golddiskontbank. The payment of claims not
represented by securities, as far as these are
not excluded from all transfer under the German
transfer moratorium, is effected through the
Postal Cheque and Transfer Service at The
Hague, which receives the supplementary
amounts from the transfer account according
to data with which this service provides us.
We further opened a special account in favor
of the Amsterdam Bankers7 Association on
which that association, as agent of the Golddiskontbank, can receive the funds required
for the purchase of scrips.
Money market.—At the beginning of the
fiscal year the Amsterdam money market
showed the ease which had been characteristic
JULY
1934
FEDERAL RESERVE BULLETIN
for some time. Uncertainty as to the future
development of financial and economic conditions, the abundance of liquid funds resulting
from the stagnation of industry and commerce,
an i the decline of acceptance business caused
by the shrinkage of international trade, kept
rates at a low level. The course of events in
the United States at first affected the market
only slightly. As gold arbitrage assumed
larger proportions, however, and shares rose on
the stock exchange, the abundance of funds
came to an end, while during the days of
tension on the foreign exchange market the
various quotations rose considerably. This
happened at the beginning of May and again
about the end of June; in both cases the
Netherlands Bank raised its discount rate by a
full percent. The tension at the beginning of
May was soon overcome; the end of June
tightness continued longer—partly because of
end-of-month requirements—and was accompanied by higher quotations. The private
discount rate and " prolongation" (monthly
loan) rate rose to 4 percent; the call rate went
as high as 4% percent.
On July 7, 1933, the tone of the foreign
exchange market changed and the strain was
somewhat relieved. This tendency toward
easier money gained strength toward the end of
July and through August, until by September
the former easy situation had returned. This
continued until February 1934, when the
monetary measures of the United States again
led to a rise in money rates. In addition,
toward the end of March 1934, the banks had
an opportunity to employ their liquid funds
more profitably by buying Government bonds
called for redemption. This time, however,
the quotations did not reach the high levels of
previous occasions. The private discount rate
reached a peak of 1% percent, " prolongation"
1% percent, and call money three-fourths of
1 percent.
Treasury financing.—The act of December
20, 1933 (Staatsblad No. 705) raised the maximum currency of Treasury bills from 12 months
to 5 years and at the same time legalized the
issue of bills under par. On the strength of
this authorization the Government in December 1933 placed 95,000,000 florins 3%-percent
3-year Treasury bills with a syndicate of
bankers resident in this country. The banks
in question have undertaken not to place the
467
bills in the market during the first 6 months,
whereas the Government entered into the
obligation not to issue other 3-year bills during
these 6 months. The Netherlands Bank declared itself prepared on principle to accept
these bills on the usual terms as collateral
security for loans. In February and March
1934, 5-year bills also bearing 3K percent
interest were offered under this act; the yield
on the paper allotted at these issues, which
were many times oversubscribed, was in both
instances 3.34 percent.
Discount rates.—As already mentioned, the
Netherlands Bank twice raised its rates, in
both cases by a full percent and all along the
line. These changes took effect May 12, and
June 29, 1933. They aimed at checking an
undesirable credit expansion that would render
it difficult to keep the guilder at its legal parity.
The discount rate was 4% percent from June 29
to July 14, inclusive, the other rates being
5 percent during this period. As the strain in
the money market was further relieved, the
bank was able to lower the rates gradually.
This was done as from July 15, July 29, August 15, and September 19, 1933, each time by
one-half of 1 percent. On the date last mentioned the level obtaining until May 12, 1933,
was reached again, the discount rate being
reduced as from that date to 2}i percent and
the other rates to 3 percent.
Capital issues.—There were no foreign issues
during the period under review. As mentioned
in the previous annual report, the bank had
intimated informally at the beginning of 1933
that the flotation of long-term foreign loans
should be avoided until more certainty existed
with regard to the development of international
relations. In view of the subsequent course of
events the bank has found no reason to alter
its position in this respect.
By far the greater part of domestic issues
was for Government account just as was the
case last year. The total amount of provincial
and municipal loans declined from 93,300,000
florins to 26,400,000 florins. It is worth noting
that in addition hereto considerable amounts
of these loans were placed privately, as shown
by the prospectuses.
The total of issues for account of private
enterprises, which in the previous year had
already fallen to 16,000,000 florins, showed a
further decline to 8,000,000 florins.
468
FEDERAL RESERVE BULLETIN
BALANCE SHEET OF THE NETHERLANDS BANK AS OF MAR. 31, 1934,
JULY
AND MAR. 31,
1934
1933
[In thousands of florins]
Mar. 31,
1934
Resources
Gold coin
—
Gold bullion
Silver coin
Correspondents abroad
Foreign bills
Domestic bills
Loans
Advances in current account
Advances to the Government (law of May 27,1932)
Investments in shares listed by the Amsterdam
Brokers' Association
Shares of the Bank for International Settlements
of which 25 percent is paid in
Other investments
Net balance with banking correspondents.
_.
Cash items
Interest accrued on loans
Interest accrued on advances in current account.
Interest accrued on investments
Commission account
Bank premises and furniture
Total resources
Mar. 31,
1933
106, 715
680,888
24, 658
1,172
1,154
27, 794
111, 656
54, 678
16,996
98, 200
850, 869
22, 990
8,088
72,813
37,491
39,051
46, 054
18, 331
16, 579
17, 035
1,200
4,947
41
49
785
213
127
124
4,970
1,200
4,212
27
47
175
201
152
69
5,000
1, 054, 748 1,222,006
Liabilities
Mar. 31,
1933
Notes in circulation
Current accounts
Other demand liabilities
Capital
Reserve fund
Special reserve (art. 9 of the Bank Act of 1919)
Pension fund
Unearned discount on domestic bills
Unearned discount on foreign bills
Dividends payable
Balance of profits at the disposal of the general
meeting
Total liabilities.
1,222,006
CUBAN CURRENCY LEGISLATION
A series of decree-laws affecting the currency
have been enacted in Cuba in recent months.
Provision has been made to coin additional
silver pesos and to give them unlimited legal
tender power; the gold peso has been devalued
in conformity with devaluation of the American
dollar; and foreign exchange transactions have
been brought under control. A brief resume of
the laws is given below together with translations of three of them.
Decree-Law No. 93 of March 22, 1934,
ordered the coining of 10,000,000 silver pesos
against which silver certificates might be issued.
The silver was to be purchased at the worldmarket price. To facilitate such purchases
in the American market the Second ExportImport Bank of Washington, D.C., granted a
credit of $4,000,000 to the Cuban Government.
At the time the minting of the new silver
coins was ordered there was a small discount
on the silver peso in relation to the American
dollar. With the purpose of preventing the
new issues from increasing this discount,
Decree-Law No. 153 was enacted April 19,
1934. This law admitted national silver currency without limit in payment of taxes, duties,
fees, and imposts of the State, the Provinces,
and the municipalities. The preamble stated
as one of the reasons why such permission
could be granted at this time the fact that the
moratorium on payment of principal of its
foreign debt (under Decree-Law No. 123 of
April 10) had diminished the need of the Gov-
ernment for United States currency. DecreeLaw No. 176 of April 27 contained full regulations for the issue of silver certificates and provided that the certificates should be admitted
in payment of public dues on the same basis as
silver coins.
On May 23 the content of the gold peso was
reduced by Decree-Law No. 244 from 1.5046
grams of fine gold to 0.8886 of a gram. The
old and the new gold contents of the Cuban peso
corresponded respectively to those of the
United States dollar before and after January
31, 1934. This alteration of the gold content
of the peso and the substance of the other provisions of the law were confirmed on May 26 by
Decree-Law No. 256, published below, which
replaced all except the preamble of Decree-Law
No. 244.
Among other things these two laws made the
silver peso unlimited legal tender and provided
that all obligations payable in money could be
settled in any currency to the extent that it was
legal tender in Cuba. The latter provision
was clarified on May 28 by Decree-Law No.
259, p u b l i s h e d below, which stated that
obligations contracted prior to May 23, 1934,
stipulating payment in a currency that continues to be legal tender in Cuba, should be paid
in that currency. The preamble called attention to the fact that American paper currency
continues to be legal tender in Cuba, although
under Decree-Laws No. 244 and No. 256 both
Cuban and United States gold coins of the old
JULY
FEDERAL RESERVE BULLETIN
1934
par weight were demonetized. The Cuban
Government will purchase these old gold coins
as bullion at the new par rate.
Decree-Laws No. 244 and No. 256 also prohibited the export of gold in any form other
than articles of personal use. This was followed on June 2 by the establishment of Government control over currency exports and
foreign exchange transactions under DecreeLaw No. 268, published below. The transfer
of funds abroad for current business or in payment of existing obligations (including bonds
of Cuban enterprises) is in general permitted by
this law; but the export of capital other than to
meet existing obligations is prohibited unless
the capital has been imported subsequent to
June 2, 1934.
DECREE-LAW NO. 256
469
"ART. IV. National gold coins of the fineness and
weight established by the law of October 29, 1914, and
gold coin of the United States of America shall not
henceforth constitute legal tender and shall be considered as bullion and acquired by the Cuban Government by weight at the price fixed in article II of this
decree-law.
" A R T . V. Article V of the National Monetary Law
of u
October 29, 1914, shall be amended to read as follows:
'ART. V. Gold coins of national currency having the
weight and fineness fixed in article I of Decree-Law
No. 244 and silver coins of 1 peso shall constitute
unlimited legal tender. Subsidiary currency of silver
shall be legal tender in the proportion of 8 percent of
the sum to be paid and full legal tender for the settlement of obligations not exceeding 10 pesos. Fractional
currency of nickel shall be legal tender for payments
not exceeding 1 peso.
" 'All obligations payable in money, whether or not
contracted before the effective date of the present law,
can be settled in any legal tender currency in the proportion set forth in the preceding paragraph.7
"ART. VI. Exportation is prohibited of gold in the
form of coin, bars, bullion, jewelry, ornaments, articles
of use or in any other form with the exception of articles of personal use, in accordance with regulations
under this decree-law.
"ART. VII. Anyone who exports, ships or attempts
to export or to ship gold in violation of the prohibition
set forth above shall be fined not more than 5,000
pesos.
"The possession of gold in a customs zone in an
amount exceeding 100 j:>esos, shall be considered as an
attempt to export or ship.
"ART. VIII. Any gold that may be seized by the
authorities because of its having been the object of forbidden exportation or shipment or attempted exportation or shipment, shall be expropriated by the Government and forwarded for appraisal and acquisition to the
Bureau of Currency of the Treasury Department.
"ART. IX. The fine referred to in^article VII shall be
imposed by the Secretary of the Treasury within a period
not exceeding 30 days from the date of the violation,
the offender to be notified thereof at the time he
receives payment for the gold expropriated. Should
the offender not submit to imposition of the fine, it
shall so be stated in the record and the proceedings and
evidence together with the statement of the fine turned
over to the competent judge or tribunal for decision.
"ART. X. Decrees Nos. 570 of April 21, 1917, and
2788 of November 21, 1933, and No. 4 of disposition
five of the customs tariff enacted by presidential decree
of October 19, 1927, as well as any other provisions of
law in any manner contradictory to this decree-law are
hereby revoked. Nevertheless, cases pending decision
when this decree-law is promulgated shall be decided
in accordance with the laws in force at the time of the
seizure."
ART. XI. This decree-law shall become effective upon
its publication in the Gaceta Oficial of the Republic.
Therefore, I order that this decree-law be fulfilled and
executed in all its parts.
Given at the Presidential Palace, in Habana, on the
25th day of the month of May 1934.
I, Carlos Mendieta y Montefur, Provisional President of the Republic of Cuba, hereby make known that
the Cabinet has approved and I have sanctioned the
following:
Whereas in the copy forwarded to the Gaceta Oficial
of Decree-Law No. 244 of May 22 of the present year,
published in Gaceta No. 119 of the following day,
certain errors in text occurred which should be
corrected;
Whereas furthermore the said decree-law failed to
define the status of legal proceedings initiated in connection with gold exports prior to the effective date of
the above-mentioned Decree-Law 244;
Whereas the situation that has developed as a result
of the said textual errors and the omission of the necessary rulings must be remedied through the promulgation of another decree-law embodying the corrections
mentioned;
Whereas in the amending enactment it is not necessary to repeat the preamble of the said decree-law
but only its enacting clauses;
Therefore, in exercise of the powers conferred upon
it by the constitution of the Republic, the Cabinet has
resolved to issue the following Decree-Law No. 256:
Sole article.—Decree-Law No. 244 of May 22 of the
present year, published in the issue of the Gaceta
Oficial of May 23, shall read as follows:
"ARTICLE I. The fine gold content of the national
monetary unit, the peso, is reduced and the peso shall
have henceforth a weight of 0.9873 grams with 0.8886
grams of fine gold.
"ART. II. The Government will purchase by weight
metallic gold which is offered to it in any form, at the
rate of 35 silver pesos per Troy ounce of fine gold with
no deduction other than 1 percent for costs of administering this decree-law when the metal is 0.900 fine and
additional charges when it is necessary to refine metal
of lower fineness.
"ART. III. The Secretary of the Treasury shall
CARLOS MENDIETA.
establish an office for the purchase of gold in the Bureau
of Currency, and shall issue the necessary regulations
DECREE-LAW N O . 259
governing the form and quantities in which the metal
shall be purchased, the respective analysis and assays
I, Carlos Mendieta y Montefur, Provisional Presiand the payment to the sellers, which, in the case of dent of the Republic of Cuba, hereby make known
coins of legal tender and others of the same fineness that the Cabinet has approved and I have sanctioned,
shall be made within 3 days following delivery.
the following:
470
FEDERAL RESERVE BULLETIN
Whereas in Decree-Law No. 244 of May 22, 1934,
the legal tender status of silver coin is established, and
article 10 of the law of October 29, 1914, granting equal
legal tender status to the money of the United States of
America, was not repealed by the said decree-law nor
by any later measure;
Whereas under these circumstances both national
money and American paper currency are at present
legal tender, the payment of debts previously contracted being therefore possible in either of the said
two currencies without distinction;
Whereas article 1170 of the Civil Code provides that
payments in cash shall be made in the currencies
agreed upon;
Whereas the enactment of Decree-Law 244 cited
above may give rise to doubt as to whether or not
contracts in which payment was stipulated in American money, which, as stated, is legal tender, are demandable in that money;
Whereas in so important a matter it is advisable to
make the Government's purpose perfectly clear and
avoid any misinterpretation which might be detrimental to the country;
Therefore, by virtue of the powers vested in it by the
constitution of the Republic, the Cabinet resolves to
issue the following Decree-Law No. 259:
ARTICLE I. Obligations incurred in money, contracted prior to the promulgation of Decree-Law No.
244 of May 22, 1934, in which payment has been
agreed upon in a currency which continues to be legal
tender in Cuba, shall be paid in the currency agreed
upon.
ART. II. All obligations payable in money contracted
after the promulgation of that decree-law may be
paid in any legal tender money with the limitations
established with respect to subsidiary coins of silver
and fractional coins of nickel.
ART. III. The present decree-law shall take effect
from the date of its publication in the Gaceta Oficial
of the Republic.
Therefore, I order that the present decree-law be
fulfilled and executed in all its parts.
Given at the Presidential Palace in Habana, on the
28th day of the month of May, 1934.
CARLOS MENDIETA.
DECREE-LAW N O .
268
I, Carlos Mendieta y Montefur, Provisional President
of the Republic of Cuba, hereby make known that the
Cabinet has approved and I have sanctioned the following:
Whereas it is the purpose of this Provisional Government to assist in restoring the economy of the country
by adopting the measures that may be of the greatest
benefit to the Cuban people;
Whereas one of the great needs requiring attention
is that of balancing international payments and increasing the volume of money on hand and in circulation within the country in order that it may be devoted
to the support and development of the national
economy;
Whereas in order to accomplish these ends of diminishing the total of international payments the Government of the Republic suspended by Decree-Law No.
124 of April 10, 1934, amortization payments on all
external debts until the economic situation of the
country permits the Government of the Republic to
obtain revenue in the sum of 60 million pesos;
Whereas at the same time and with the object of
clarifying the situation and investigating the legitimacy
JULY
1934
of the debts contracted for financing public works,
Decree-Law No. 140 of April 16 of this year was promulgated, creating a commission to examine said operations and render a report at its convenience;
Whereas with the intent of increasing money in circulation within the country it was resolved by DecreeLaw No. 93 of March 22, 1934, published in the Gaceta,
special edition No. 31, of the 23d of the same month
and year, to authorize the coining of 10 million pesos
in silver of the same fineness and weight as the present
coins;
Whereas it is proper to supplement the said measures
by prohibiting the exportation of capital by individuals
to foreign countries, so that said capital may remain
in the country and be invested herein;
Whereas it is necessary, however, to prevent this
measure from obstructing or making difficult the normal
interchange of goods with countries with which the
Government maintains relations, or the payment of
debts formerly contracted and the continuation of
contracts such as life insurance and fire insurance
created in the ordinary course of business within the
country, for which purpose proper exceptions should
be made;
Whereas products might be exported to obtain
balances abroad thus indirectly bringing about the
exportation of capital which should be employed within
the country and it is desirable to adopt restrictive
measures to prevent the establishment of such balances;
Therefore, in use of the powers with which it is
vested by the constitution of the Republic, the Cabinet
has resolved to issue the following Decree-Law No. 268:
ARTICLE I. All exportation of money is hereby prohibited, and, consequently, the exportation and negotiation of drafts for payments abroad is hereby prohibited, with the exceptions established in the following
article.
ART. II. Nevertheless, money may be exported and
drafts issued and negotiated in any of the following
cases:
(a) For payment of the purchase price of imported
goods.
(6) For payment of obligations contracted prior to
the date of this decree-law.
(c) For payment of maintenance expenses up to a
maximum of $500 per annum, of Cubans or foreigners
resident in Cuba who are abroad for a short time or
leave the Republic temporarily.
(d) For payment of interest or principal of bonds or
dividends on stock of companies located in Cuba, the
holders of which reside abroad.
(e) For payment of maintenance of offices and
personnel, and for services rendered abroad to promote
the exportation of Cuban products, as well as for any
other expenditure for the same purpose.
(/) For payment of insurance premiums on existing
or future insurance contracts.
(g) For payment or exportation of the principal or
interest of any funds imported into the country after
the promulgation of this decree-law.
(h) For all payments which for any reason must be
made abroad by the State, the Provinces, or the
municipalities, and, subject to proof and approval
thereof, for all remittances for scholarships by benevolent, religious, or educational institutions.
ART. III. The issuance of drafts shall be subject to
proof that they come under the exceptions established
in the preceding article. The bank or banker issuing
the draft shall report to the Treasury Department on
the date of issuance the name of the person or entity
making the draft, its purpose and justification.
JULY
1934
FEDERAL RESERVE BULLETIN
ART. IV. For the purpose of establishing cause for the
issuance of drafts, the following rules shall be followed:
(a) For the importation of goods the applicant for
the draft shall present the invoice or order which
has been made or shall bind himself to prove the importation of the goods within 90 days from the date of
issuance of the draft.
(b) When the payment is on account of obligations
contracted prior to the date of this decree-law, documents setting forth the obligation must be produced and
statement must be made under oath that said obligation is in force and that payment is being made thereon.
(c) At the time of leaving the country any national
or resident may take with him the sum of $500 in
national currency. Likewise a maximum of $500 per
annum may be drawn for Cubans and foreign residents
of Cuba, who are abroad temporarily wrhen this decreelaw is promulgated. To this effect, the applicant for
the draft shall swear that it is being purchased for such
persons and that sums in excess of the authorized maximum have not been previously issued for their support.
(d) For the transfer of principal or interest on bonds
which are a lien upon properties located in Cuba and
which belong to residents abroad, or for payment of
dividends on shares of Cuban companies whose stock
belongs to residents abroad, the debtor or the company
buying the draft shall prove the existence of said obligation and shall swear that the person in whose favor
the draft is to be drawn has his customary residence
abroad.
(e) For the purchase of drafts for the support of
offices the purpose of which is to promote the exportation of Cuban products, as well as for any other expense
for the same purpose, the applicant for the draft shall
prove in advance the amount of such expenses and shall
obtain approval for such exportation from the Treasury
Department.
(/) Foreign insurance agencies and insurance companies may send by draft to their main office the proceeds from net premiums which they are entitled to
collect in accordance with insurance contracts entered
into in the country. In this connection they shall submit monthly to the Treasury Department a sworn list of
the insurance contracts concluded and the amount of
the net premiums which they are to send to their main
office. Net premium shall be considered that which
the company is entitled to collect after deducting the
commission granted to the agency in Cuba.
471
(g) For the issuance of drafts to be applied to the
payment of principal or interest on funds that are
imported after the promulgation of this decree-law,
the applicant shall present proof of the importation of
the funds.
ART. V. There is created in the Treasury Department a bureau for the control of the exportation of
capital, which shall be attached to the Bureau of Currency and shall take cognizance of all cases relating to
the exportation of capital. The organization of said
bureau as well as the rank and number of its personnel,
shall be determined by the regulations to be issued
under this decree-law.
ART. VI. In all cases of issuance of foreign drafts,
the issuing bank shall take care to identify the applicants and to record their addresses.
ART. VII. Every person who exports funds, directly
or indirectly, in violation of the provisions contained
in this decree-law, as wrell as those who facilitate such
exportation shall be imprisoned (arresto mayor), and
temporarily prohibited from engaging in commerce and
from holding public office.
ART. VIII. Every product that is exported, the sale
proceeds of which do not enter the country within 3
months following the date of exportation, except when
special permits are issued by the Secretary of the
Treasury, shall be considered as funds indirectly
exported and subject to the penalites prescribed in the
preceding article.
ART. IX. When exports are made to persons residing
abroad of the proceeds of their businesses or properties
in Cuba in cases not specified in article II of this decreelaw, a tax of 10 percent on the amount exported shall be
collected as part of the cost of the draft.
ART. X. The regulation and collection of the 10percent tax on drafts transmitting funds to persons
residing abroad, in cases not falling within the exceptions in article II of this decree-law, shall be governed
by the provisions issued for the regulation of the tax
of one-fourth of 1 percent established by the law of
July 15, 1925.
ART. XI. This decree-law shall take effect from the
date of its publication in the Gaceta Oficial of the
Republic.
Therefore, I order that this decree-law be fulfilled
and executed in all its parts.
Given at the Presidential Palace, in Habana, on the
2d day of the month of June 1934.
CARLOS MENDIETA.
472
FEDERAL RESERVE BULLETIN
JULY 1934
FINANCIAL STATISTICS FOR FOREIGN COUNTRIES
GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS
[In millions of dollars]
Europe
Total
(50 countries)
United
States i
1933—May
June
July
August
September..
October
NovemberDecember. .
1934—January
11,890
11,864
11,951
12,010
12,063
12,070
11,970
11, 942
11,964
3,991
3,997
4,001
4,009
4,011
4,011
4,012
4,012
4,033
77
77
77
77
77
77
77
77
77
1934—January a___
February
March
_
April
May
June
20,251
20, 527
20, 738
v 20,858
v 21,002
6,829
7,438
7,694
7,757
7,779
v 7,856
130
130
130
130
130
End of month
Canada
Total (27
countries)
A u ss ttrn a
ia
Au
CzechoBelgium Bulgaria slovakia Denmark England
rains of gold Ho fine; i.e., an ounce offinegold—$20.67
6,896
21
371
11
51
36
6,856
21
372
11
51
36
6,932
21
374
11
51
36
6,989
21
375
11
51
36
7,038
24
376
11
51
36
7,040
24
377
11
51
36
6,942
24
378
11
51
36
6,916
27
380
11
51
36
6,912
27
382
11
51
36
l=*15$£i grains of gold Ho fine: i.e., an ounce of fine gold=$85
11,697
45
646
19
86
60
11,358
45
639
19
112
60
11,313
45
635
19
111
60
11,340
45
636
19
111
60
p 11,426
45
635
19
111
60
625
Germany
France
907
922
925
926
926
927
928
928
929
3,173
3,185
3,213
3,223
3,218
3,176
3,051
3,022
3,021
8S
45
5£
73
87
94
97
92
90
1,573
1,574
1,574
1,575
1,577
1,578
5,109
4,904
4,947
5,023
5,136
v 5,274
152
134
96
83
52
E urope—Continued
End of month
Greece Hungary
1933—May
June
July
August
September.
October
November.
December.
1934—January
Italy
1934—January *___
February...
March
April
May
June
17
17
17
17
17
17
14
14
14
352
356
368
370
371
371
373
373
373
23
23
23
23
23
13
14
17
19
21
21
23
24
22
633
633
613
609
594
Nether- Norway Poland
lands
6 other
Spain Sweden Switzer- U.S.S.R. Yugo- counland
slavia
tries
$1= 25 fio grains of gold Hofine;t.t ounce offinegold=$20.67
., an
336
31
436
397
40
53
58
71
309
40
53
31
58
436
71
361
311
40
53
32
58
436
91
351
332
39
53
32
59
436
97
351
338
41
53
32
59
436
101
356
359
40
53
32
59
436
101
373
370
40
53
33
59
436
99
386
371
38
53
34
59
436
99
386
370
38
54
34
60
436
100
386
grains of gold Ho fine; *,«., an ounce of fine gold=$85
626
64
91
58
100
739
169
653
539
61
91
62
101
739
169
600
535
61
91
65
101
739
170
570
539
61
92
65
101
739
167
534
551
61
92
66
102
739
167
535
573
Latin America
End of month
Portu- Rumagal
nia
Asia and Oceania
• 368
401
»401
•401
416
» 416
»416
416
» 416
32
32
32
32
32
32
32
32
32
34
34
36
35
35
35
35
35
35
3 704
»704
706
3 706
3 706
53
53
53
53
53
58
£9
Africa
Total ArTotal
Co- MexNew Tur- 2 other Total
(10
South other
Uru- other (7
(4
Zeacoun- gen- Chile lom- ico Peru guay coun- coun- India Japan Java land key countries coun- Egypt Africa countina
bia
tries)
tries
tries)
tries tries)
=25$io grains of gold Hofine;i.e. ounce offinegold—$20.67
, an
11
33
10
50
162
212 43
3 107
65
25 10
8 455
10
11
50
8 454
162
212 42
25 11
3 112
33
70
10
11
50
8 453
162
212 40
25 11
3 123
33
80
10
11
50
7 453
162
212 40
25 11
3 118
33
75
10
11
50
7 452
162 • 212 39
24 11
3 115
33
72
10
11
49
7 453
162
212 40
25 11
3 123
33
80
10
11
50
7 456
162
212 42
25 11
4 125
33
82
10
11
50
6 457
162
212 44
24 12
3 126
33
83
10
11
51
7 459
162
212 45
25 12
3 127
33
84
$1=15%\ grains of gold Ho fine; i,e.f an ounce of fine gold=$85
a
1934—January
601
17
405
20
24
36
19
86
11 778
274 359 76
42 20
6 215
56 143
February. _. 598
17
405
20
24
29
20
87
14 780
274 359 79
42 20
6 222
55 150
March
605
17
405
20
25
34
19
87
15 778
274 359 77
42 20
5 218
55 146
April
P629
17
405
20
24
60 P 1 9
87 v 15 781
275 362 77
42 21
6 220
55 149
May
*>638 P 4 0 5
P20
P55
24
67 v 19
87 vYJ P 8 0 3
275 382 79 M 2
20
*6 P226
>
154 v 17
/Preliminary.
r Revised.
i Differences prior to January 1934 between these figures and those shown elsewhere in BULLETIN for total monetary gold stock in United States
are due to exclusion from the former of gold coin in circulation.
a Figures given in terms of new par for purposes of comparison only; new parity did not become effective until after close of business Jan. 31, 1934.
«Figures of last preceding statement issued by State Bank of the U.S.S.R. carried forward.
NOTE—Figures for 35 countries are as of final day of month; for the other 15 countries—including England, France, and Netherlands—they
are as of last report date of month.
The countries for which figures are not shown separately are in Europe: Albania, Danzig, Estonia, Finland, Latvia, and Lithuania; in Latin
America: Bolivia, Brazil, Ecuador, Guatemala; in Asia and Oceania: Australia and Siam; and in Africa: Algeria and Belgian Congo.
For back figures and for additional details relating to this table, see BULLETIN for May 1932, pp. 311-318, and June 1933, pp. 368-372.
1933—May
June
July
August
September..
October
November. .
December. _.
1934—January
362
368
365
364
369
365
358
354
355
249
249
249
249
249
249
244
239
239
11
11
11
11
11
11
11
12
12
14
15
15
15
15
15
15
14
14
19
24
21
20
26
23
20
21
21
473
FEDERAL RESERVE BULLETIN
JULY 1934
GOLD PRODUCTION
fin thousands of dollars]
Year and month
Estimated
world
production
Production reported monthly
Africa
Total
1932—August
SeptemberOctober
NovemberDecember..
Total (12mos.)
43,361
42, 816
43,007
42, 627
42,198
499,049
1933—January
February..
March
April
May
June
July
August
SeptemberOctober
November..
December..
Total (12mos.)-
45, 041
February
March
April
May
Rhodesia
$1'
20, 475
19,888
20,157
20,190
20,118
35, 206
42,
38, 588 31, 606
43, 255 36, 273
40, 429 33, 447
41, 382 34, 400
40, 458 33, 476
43, 649 34, 667
43, 817 34, 835
44, 355 35, 373
45, 077 36, 095
44, 653 35, 671
44, 376 35, 395
512,226 416,445
1934—January.
South
Africa
36,956
36,411
36, 602
36, 222
35, 794
422,129
238,931
20,152
18,176
19,658
18,430
19, 519
19,008
19, 228
19, 235
18, 664
18,822
18, 613
18,168
227,673
North and South America
Far East
Colom- AustraWest Belgian
United
Africa Congo Canada States i Mexico bia
1,019
1,041
1,044
997
1,080
12,000
510
609
515
526
539
5,992
1,008
989
1,038
1,108
1,108
1,130
1,133
1,167
1,180
1,143
1,150
1,181
13,335
532
531
522
528
520
561
571
579
546
567
586
580
6,623
330
304
314
307
294
ne; i.e., an
5,473
5,452
5,264
5,115
5,420
ounce of
4,982
5,085
5,271
4,858
4,651
60, 626
3,642
62,933
280
263
302
281
308
308
306
321
307
302
327
325
3,631
4,826
4,718
5,378
4,900
4,913
5,404
5,285
5,304
4,870
5,029
4,981
5,119
4,341
3,059
5,230
3,928
3,866
2,956
3,638
3,742
5,602
5,209
5,292
5,581
60,726
50,338
fine gold=$20.67
1,138
524 1,221
1,122
1,292
456
1,091
455 1,216
1,165
1,376
415
671
1,418
353
12,070
5,132 14, 563
696
702
727
715
668
8,198
6,782
1,129
1,178
1,259
1.522
1,344
1,434
1,420
1,438
1,591
1,436
1,501
1,538
16,790
666
654
747
726
734
711
755
722
847
825
794
788
8,968
574
603
626
585
554
543
589
575
572
560
560
573
6,919
1,194
1,095
1,059
905
1,035
986
1,165
1,198
820
1,501
1,172
1,038
13,169
504
334
455
535
499
435
577
555
375
700
694
503
6,165
1,3
18,897
1,201
546
320 4,781
4,858
1,080
697
$1=15%\ grains of gold 9Ao fine; i.e., an ounce of fine gold=$35
28,893
1,893
1, 906
1, 067
927
502
7,803
6,160
2, 269
r 940
30, 550 2,042
965
571
8,726
7,945 p 1, 194
2,415
30,173 P 2 , 0 2 1
941
P571
843 P 2 , 4 1 5
7,871
7,595 1, 750
31,324
991
35,059
70, 635 53, 587
74,706
57, 657
' p 73, 374 " 56, 325
i
588
559
547
556
721 |
1, 280
1, 390
225
PI,
560
886
921
P921
r
v Preliminary.
Revised.
1 Monthly figures for United States are those compiled by American Bureau of Metal Statistics of New York City; annual figures represent
official estimates made by Bureau of the Mint in cooperation with Bureau of Mines.
NOTE.—For monthly figures back to January 1929 and for explanation of table see BULLETIN for April 1933, pp. 233-235, February 1934, p. 108,
and June 1934, p. 377. For annual figures of world production back to 1873 see Annual Report of Director of the Mint for 1933, p. 104.
GOLD MOVEMENTS
[In thousands of dollars]
United States
Year and month
Total
net
imports
or net
exports
()
1932—Total (12mos.) -446,213
1933—January
128,465
February
17,776
March
i -22,081
April
i -9,967
May
! -21,139
June...J -3,244
July
' -83,879
August
-80,388
September
—56, 736
October
-32,351
November
-1,064
December
-9,128
Total (12
mos.)
-173, 736
1934—January
February
March
April
May
June p
Net imports from or net exports (—) to:
England
France
Germany
Customs valuations; with some exceptions at rate of $20.67 a fine ounce
53, 585 -441,649 - 1 3 , 356 -82,571 -96,586|-118, 273 64,574 20,087 12,991 3,240 26,597 39,043 49, 719
1,067
-1,546
-250
29, 490
-3,709
- 3 , 630
-8,993
-122
-72
-79, 617
-73,173
- 4 8 , 717
-26,923
-366
-203
6,375 -216. 035
-2,532
5,274
4,206
8,418
333
110
154
203
143
224
268
216
347
634
552
483
488
344
141
369
125
518
48
240
338
7,901 -11,631 19, 896
4,280
15,123
802
-600
-199 - 5 , 005
-724
-115
-1,445
50, 248
3,310
- 8 , 935
-2,191
-15,715
- 2 , 845
-713
-1,535
- 5 , 099
- 6 , 240
- 2 , 260
-1,650
—2,767|| -2,542
I 452,571! 239,800
j 237,336 135, 987
'54, 748 24,054
33,583
5,92^
62,147 28, 224
124, 381
51, 821
1,786
233
9,306
-216
"-109
-5
-28
-27
- 1 3 -2,171
-18
-28
-10
-895
-1,614
-681
-453
- 8 , 883
15,193
9,446
990
-15
-1
98
J> Preliminary.
r
Revised.
All
other
countries
36,383
2,042
5,612 3,729
3,208
3,700
-15,413
2,135
1,281 -2,-973 -3,137
- 5 , 729
83
812
10
-4,121
-5,708
-1,486
1,085
1,139
25,629 12,821
246I.
313
- 1 0 -1,678
Customs valuations; with some exceptions at rate of $35 a fine ounce
131 57, 272
9,087 12,114 5,124
2,490 11, 465
10,148
3,569 10,272 5,368
2,495 4,613
9,069 '640
7,234
2,554 10, 240
8, 673 2,086
10
8
6,736 2, 212J.
12,900
351
1 $17,054,000 exported to Italy.
China
Bel- Nether- Switzer- Can- Mex- Argen- Co- British and Japan
gium lands
ada
tina lombia India Hong
land
ico
Kong
6,702; -26,355
1,364
651
2,865
3, 067
1,865
2,224
2,347
3,351
1, 785
1,987
1,941
474
FEDERAL RESERVE BULLETIN
JULY 1934
GOLD MOVEMENTS—Continued
[In thousands of dollars]
Great Britain
Net imports from or net exports (—) to:
Year and month
Total
net imports
or net
exports
()
United
States
84,585 -50,642-297,050
1932—Total (12mos.)._
-43,260 -48,314
18,400 -6,559
77,198 11,821
64,767
-6
97,386
2,761
77,671 15,923
89,056
4,763
25,628
733
48,260
3,120
63,918 12, 520
79,138
6,878
79, 426
4,441
1933—January—_
February.
March
April
May
June
JulyAugust—
September
October...
November
December
7,8
Total (12 mos.)
4.788
1934—January
February
March
April.
May
France
..-
184,820
91, 471
35,003
37, 986
-2,109
-4,623
3,406
-1,519
32,486
-7,421
18,051
6,259
2,163
1,865
33,338
15,130
97,016
9,805
-238,842 283,333
-130,087
66,180
-19,851 -7,038
- 5 , 1 9 7 -30,856
Germany
Belgium
South
Africa,
South
Nether- Switzer- Amer- Canada British Straits Austra- Rhodesia,
lands
land
India Settlelia
ica
ments
West
Africa
Official figures converted at rate of $20.67 an ounce
333 -13,434 - 71,378 -14,019
5,747
220,394
-11
28
5,003
18,092
1,850
15, 254
486
179
32
-11
94
42
-634 -17,471
-507 -7,816
-1,294 - 5 , 225
-89
128
656
17, 365
6,477
8
13,528
1,114
-1,034 - 1 3 , 5 8 3
-11
-3,633
18 - 4 , 1 6 3
329
817
147
587
554
461
1,001
624
1,359
810
848
526
782
708
423
793
794
22, 659
20,316
1,789
1,717
2,692
1,910
1,991
1,942
2,315
1,889
43,374 118,817
8,682
60,81!
-20
5,310
-170
5,500
4,530 8,642
Official figure* converted at rate of $S5 an ounce
3,790
17,891
-320
4,8: 701 30,193
5,522
-176
358
187
39 37,372
523
-216
343
44
47 13,033
319
-252
284|
-34:
75 14,147
583
18,837
65, 579
3,524
8,243
374
296
198
140
401
414
436
920
3,611
120
8,143
-7,065 - 4 , 2 9 9
41, C
-13
14,056
8,924
9,129
4,141
8,703
4,108
6,579
5,013
4,186
France
Year and month
10, 781 20,264 255,310 18,279
9,495
7,175
9,178
10,278
14,948
11, 281
11,942
4,994
12, 685
16,122
4,852
5,892
-8
-79
-588
-893
-463
-479
-118
-380
-101
-217
-771
-196
All
other
countries
647
1,094
359
485
2,353
16,530
27,815
28,923
19,343
19,476
17,954
19,519
24, 774
21,027
20,467
20,885
19,460
-2,120
1,245
2,556
-2,083
-3,169
6,069
11,715
- 3 , 212
5,434
4,403
4,558
12,871
256,177 41, 667
17,667
2,951 30,881
3,105 36, 707
3,824 31,929
3,086 42,935
3,170
30, 587
5,591
8,483
4, 750
Germany
Net imports from or net exports (—) to:
Total
net
imports
All
or net
other
Ger- Neth- Switexports United Eng- many
erzerStates land
counlands
land
tries
Total
net
imports
or net United
exports States
()
Net imports from or net exports (—) to:
England
France
Netherlands
Switzerland
U.S.
S.R.
All
other
countries
Official figures converted at rate of $20.67 an ounce
1932—Total (12
mos.)-- 828,178 468,052
1933—January
February. .
March
April
May
June
July
August
September.
October
November..
December..
-37, 399 -35,361
2,900
-1,659
2,559
-144
16,729
9,287 1,005
48,252
18, 583 2,283
96,140
-5,819
46,840
5 -18,537
50,808
39,263 -12,572
53, 694
75,680 -11,533
43,043
60,990 - 1 , 3 9 6
26, 233 47, 745 - 1 , 6 8 6
-52,936
177 -24,646
- 4 5 , 650
-19, 387
Total (12
mos.)._ 244,092 223,905
37,889
37,547-17,668
200
678
1,266
22, 520
1,277
22,903
23,430
-46
-8,059
-3,814
2,805
27, 778
670
39,785
7,976
5,695
-6,837
-6,166
-12,427
' - 3 -21,460
701
-772
57,425
34,706
-1,126
-7,127
-23, 356
-6,377
37,113
30,797
16,598»
-1,397
-2,176
-3,369
-5,674
-23,368
10,538
-7,627 -27,282
-197
-432
749
»10,574
» 16,102
3,695
-21,605
-2,174
-152
1,
-1,328
-2,823
4,424
-13,076
-13,163
- 6 8 , 750
-9,938
-36,432
4,592
-676
19,120
5,845
2,572
2,627
4,348 -102,856
367
1
46
1,453
216
"77
-250 -38,170-24,455 -7,915 46,656 -3,515
22
-4,945
-17,822
-292
-13,676
-162
-186
-32
41
-13
15
17,910
5,933
4,710
691
-1,976
-10,429
-4,925
- 4 , 541
-10,102
-5,392
270
-256
1,173
-94
-5,268
590
1,799 -37,044 - 6 4 , 9 2 2 -40,950
107
93
46
75
-61
34
6,293
3,336
3,956
5,411
7,023
3,833
4,612
3
3,182
2,668
206 40,317 -2,26E
v
1934—January
-7,217
Februarys. •175,8371
•232,719
March
—1,384
April. ___
30,914
May r>
-20
—2,627
286
Official figures converted at rate of $35 an ounce
-92,336 -160,187 12, 536 31,251 -1,7491 2 34,648 -18,363
-29,7901 -12,490
-455
-79,158 -155,630
-182
3 15,955 - 2 , 9 1 4 -10,974 - 3 9 . 440
-55,568
-2
1,164 —40, 597
—3,484 —8, 032 —8, 347
77 1,995 —1,201 2 37,176 —5, 655
124 33, 581
-12,4221 -10,107 -12,354
1
516 5,405 3-8,712 -27,917
1,215 - 5 , 2 5 9
-2
- 7 7 -1,196
-1,897
1,246
—
- 8 0 3,638
49
- 9 8 24,279
137 16,991
7 13, 544
29 6,774
192
-817
657
162
* Preliminary.
>
1
Except during January 1933, imports of gold from Switzerland are included under "All other countries" since they are not reported separately
in the official monthly statistics.
2 $9,832,000 imported by France from South Africa in April 1933; $14,412,000 in May 1933; $28,176,000 in February 1934; $35,545,000 in April 1934.
3 $20,305,000 exported by France to Belgium in July 1933; $9,747,000 in May 1934.
NOTE.—Great Britain and Germany—In some cases the annual aggregates of the official monthly figures differ somewhat from the revised official
totals published for the year as a whole. German gold movements by individual countries for 1934 are subject to revision.
475
FEDERAL RESERVE BULLETIN
JULY 1934
GOLD MOVEMENTS—Continued
[In thousands of dollars]
Nethc;rlands
Total net
imports
or net
exports
Year and month
(-)
Net imports from or net exports (—) to:
United
States
1932—Total (12 mos.)
116,149
1,898
-933
-9,320
-18,102
—41, 605
-45,503
-13,628
24,239
16,488
18,562
9,688
-9,294
-14,101
-3,432
10,785
603
-67,510
Total (12 mos.)
1934—j anuary
115
2,191
-102,784
-9,201
3,063
13,859
Poland
-16,137
16,423
-976
-881
-506
-358
-1,479
-353
-1,174
-194
-10
—64
-30
-5
-1,100
-3,452
-2,324
-1,259
-3,069
-1,702
-1,466
-174
-241
-1,232
-297
-658
2,199
166
679
1,107
108
291
275
2,236
2,099
441
31
-38
-34
-1
-79
179
— 18
20
90
97
105
142
99
-1,624
-72,183
40,818
-17,873
-6,030
-16,974
9,632
567
- 1 , 220
33
246
-257
-532
201
1,696
21
360
5
311
235
-42
164
—359
- 1 3 , 283
-4,928
-418
-115
-238
-367
Official fignires converte i at rate of $ 85 an ounce
- 7 6 , 485
233
-62
4,077
-4,132
345
-141
6,116
-287
7, 951
-102
-8
-158
11,835
-68
(-)
England
-7,346
British India
Net imports from or net
exports (—) to:
Net imports from or net exports (—) to:
Total
net
imports
or net United
exports States
All other
673
-5,055
-7,009
-1,522
-1,068
-1,797
-1,432
17
-338
-22
-90
-230
Switzerland
Year and month
British
India
Switzerland
2,009
10,300
4,986
3,609
11,178
5,581
-180
47
-903
-357
5,369
-821
-7,082
-17,262
-6,248
- 4 , 444
Belgium
-837
- 6 , 722
-19,367
-18,188
-37,068
-41,046
6,065
11,183
13,849
14, 457
6,096
-601
- 8 , 629
February
March
April
May
Germany
14,069
8,177
3,436
-906
— 11,384
-6,390
-15,750
12,996
1,798
1,385
-1,942
-7,111
-3,839
. .
France
0 fficial figure s converted a t rate of $20 .67 an ounce
-34,009
50,070
26,886
- 1 2 , 727
-13,630
106,623
1933—January . . .
February
March
April .
.
May
June
July
August
September
October
November
December
England
Ger- South NetherFrance many Africa
lands
All
other
Total
net
imports
or net
exports
(-)
England
United
States
All
other
Gold
production in
India
Increase Increase
or deor decrease
crease
(-)in
( - ) in
Govern- private
holdment
reserves ings in
India i
in India
Offi cial figiires conwrted at rate of $20.67 an ounce
1932—Total
(12
mos.)
1933—January
February
March
April
May
June
July..
August
September.. .
October
November.. .
December...
169,786
Total (12
-41,121
mos.)
1934—January
February
March
April...
May.
124,354
4, 658
-14
8,502
- 2 4 , 440
653
-12,078
-42,481
1,377
- 4 1 , 596
-14,302 " " - 3 0 7
-1,542
1,656
16
4,073
502
3,553
23, 996
8,756
1,266
15,342
7,418 7,880
2,393
123
6,987
82
907 21,306
-307 -10,745
- 4 , 0 8 2 - 3 8 , 776
- 3 , 1 5 2 - 3 4 , 751
- 5 , 739 - 8 , 324
1,135
-229
1,767
-431
4,243
-790
4,684
-1,444
- 9 , 474 23.299
-247
180
2,233
-30,1091 -10,898 - 2 1 , 567
- 2 5 , 4 0 3 - 1 , 6 1 7 -12,110 - 7 , 7 9 9
-43,753
-4,682 - 3 8 , 1 8 9
-11,582
- 5 , 350 - 6 , 6 1 3
- 3 0 4 -195,662 -38,094 151,059 - 6 , 508
6,782
574
60S
626
585
554
543
589
575
572
560
560
573
205 13,168 - 1 3 , 781 -126,048 -30,340 - 8 3 , 730 -11,979
6,916
82
-14,063
1 1,187
-47
12,683 -1,380
C)fficial fi gures cc nverled a t rate of $31 an ounc
e
>
-12
2 -365
499 - 3 9 . 307 - 7 , 7 0 3 - 3 1 , 6 7 8
74
-44
311 - 4 , 1 4 3 -20,806 - 8 , 862 - 1 1 , 6 6 4
-280
1,277 P - 2 0 , 617
-26
-2,132
-222
618 p-20, 037
-16
560
10, 983 - 2 4 , 536 - 2 6 , 781 - 3 7 9
110
101 14,996
129
-47
-1,576
-1,430
- 3 , 359
-1,181
- 1 , 565
-1,866
-622
-342
176
-296
-77
-77
-40
—62
-68
6
-44
57
-41
-86
71
-17
3
48
149
1
2
1,176
2,461
3,802
994
2,778
288
1,866
-1,339
130
78
191
741
1,040
-937
- 2 , 236
-1,958
- 3 , 709
-3,988
-1,756
-1,166
64
124
50
689
-11,910
- 1 2 , 788
-12,722
-11,698
-13,016
-14,004
- 6 , 298
-10,971
-13,411
- 7 , 643
- 5 , 847
- 5 , 734
- 9 , 741
-9,413
-5,314
-4,311
-1,561
-2,304
- 3 , 328
-5,833
-5,956
- 8 , 096
-12,823
- 4 , 734
-9,105
-12,789
-7,301
-6,023
- 5 , 438
886
921
P921
P921
127 -189,007
-1
-2
—1
-1
-5
-11.342
-12,179
-12,096
-11,113
-12,462
-13,461
- 5 , 707
-10,395
-12,839
-7,083
- 5 , 287
-5,160
-119,124
v-13,490
-38,421
-19,880
-5
>
186 * -19,882
>
- 2 * -19,114
Preliminary.
i Figures derived from preceding columns; net imports plus production minus increase in Government reserves in India.
NOTE.—Netherlands and Switzerland—In some cases the annual aggregates of the official monthly figures differ somewhat from the revised
official totals published for the year as a whole.
476
FEDERAL RESERVE BULLETIN
JULY 1934
GOVERNMENT NOTE ISSUES AND RESERVES
[Figures are for last report date of month]
1934
May
Argentine Conversion Office (millions of
gold pesos):
Gold
Currency issued.
Irish Currency Commission (thousands of
pounds sterling):
Legal tender note fund:
British legal tender and bank
balances
British securities
Notes issued
Consolidated bank notes:»
Issued
-.
Deemed such under sec. 60 (4) of
currency act, 1927
_.
Apr.
247
536
1933
Mar.
247
551
247
548
May
257
579
175
207
166
6, 985 6,884 7,013
7,160 7,091 7,179
44
7,614
7,658
4, 795 4,790 4,763
4,605
1,199
1,312
1,191
1,214
1934
Apr.
May
Canadian Minister of Finance (millions
of Canadian dollars):
Gold reserve against Dominion n o t e s . .
Advances to banks under finance act_.
Dominion notes:
Issued
171
Outside chartered bank holdings..
29
Indian Government (millions of rupees):
Gold standard reserve:
29
Gold
_..
Foreign exchange
505
Paper currency reserve:
416
Gold
..__
963
Silver
298
Other assets
1,794
N o t e s issued
1933
Mar.
May
40
70
42
172
29
173
30
175
30
29
505
29
505
179
354
416
973
295
1,769
415
980
377
1,772
264
l,0P2
400
1,757
70
» Figures for consolidated bank notes issued represent daily averages for 4 weeks ended May 26, Apr. 28, and Mar. 3, 1934, and May 27, 1933.
Figure for notes deemed to be consolidated bank notes are as of close of business on these dates.
BANK FOR INTERNATIONAL SETTLEMENTS
[In thousands of Swiss francs]
1934
1933
M a y 31
Gold in bars
___
Cash on hand and on current account with
banks
Demand funds at interest
Rediscountable bills and acceptances (at
cost):
Commercial bills and bankers' acceptances
_.
Treasury bills
Total
Time funds at interest—Not exceeding 3
months
Sundry bills and investments:
Maturing within 3 months:
Treasury bills
Sundry investments
Between 3 and 6 months:
Treasury bills
Sundry investments
Over 6 months:
Treasury bills
Sundry investments
_.
Total
Other assets:
Guaranty of central banks on bills
sold
Sundry items
Total assets
1934
1933
Liabilities
Assets
A p r . 30
26,030
28,176
10,360
11,983
4, 612
11,763
May 31
6,962
43,897
163, 111
196,190
160,986
195,249
238,175
167,320
350, 301
356, 235
405, 495
41,429
38,617
110,732
25, 620
42,511
20,191
63, 632
35, f,73
47, 777
55, 923
52, 472
64,467
31, 458
8,300
59, 540
9,593
35, 972
4,805
35, 960
594
222, 091
220, 511
151,785
4, 511
5,115
4, 451
5,347
680, 821
669, 713
May 31
May 31
Demand deposits (gold)
Short-term deposits (various currencies)
Central banks for own account:
Demand
Time—Not exceeding 3 months..
Total....
—
Central banks for account of others:
Demand
Other depositors:
Demand
Long-term deposits:
Annuity trust account
German Government deposit
French Government guaranty fund.
Total
Capital paid in
Reserves:
Legal reserve fund
Dividend reserve fund
General reserve fund
Other liabilities:
Guaranty on commercial bills sold..
Sundry items
Apr. 30
25, 681
28,176
57.165
107,176
45,804
106,063
95, 528
139, 599
164, 341
151,867
235,127
9,161
9,335
10,189
1, 026
1,044
6,567
I
153,640
76, 820
40, 824
153,640
76, 820
40, 410
152,624
76,312
56,918
271,284
125, 000
270,900
125, 000
285,853
125, 000
2,672
4,866
9,732
2 0°2
3,895
7, 790
2 022
3J 895
7,790
4,511
53,103
4, 451
65, 232
} 34,377
10,821
669, 713
720, 565
1,696
720,565 |
Total liabilities
477
FEDERAL RESERVE BULLETIN
JULY 1934
CENTRAL BANKS
Liabilities of banking department
Assets of banking department
Bank of England
(Figures in millions of pounds sterling)
Gold
(in issue
department)
Oasb reserves
Coin
Notes
Discounts Securiand
ties
advances
Note
circulation
Deposits
Bankers'
Public
Other
Other
liabilities
1933-May 31.
June 28.
July 26.
Aug. 30.
Sept. 27.
Oct. 25_.
Nov. 29.
Dec. 27.
186.3
189.4
190.1
190.3
190.4
190.4
190.6
190.7
1.1
1.2
1.3
1.4
1.4
1.3
1.2
1.0
72.3
74.2
72.8
76.3
79.6
81.2
80.4
58.7
11.2
16.6
11.2
10.0
9.2
8.5
8.6
16.8
83.5
87.2
103.0
94.9
85.8
92.5
84.7
101.4
374.1
375.1
377.2
374.0
370.8
369.3
370.2
392.0
77.5
105.1
98.5
79.4
97.3
104.1
106.9
101.2
33.2
14.1
14.1
42.0
16.5
15.9
13.6
22.2
39.5
42.2
57.7
42.9
44.0
45.8
36.5
36.5
17.8
18.0
18.1
18.2
18.2
17.7
17.8
18.0
1934—Jan. 3 1 .
Feb. 28.
Mar. 28.
Apr. 25.
May 30
June 27
190.9
191.0
191.1
191.2
191.3
191.5
.9
1.0
1.1
84.2
83.6
72.3
77.5
73.2
69.8
8.2
5.8
5.6
5.3
5.6
6.1
88.4
87.9
88.1
86.3
87.6
91.9
366.7
367.4
378.8
373.7
378.1
381.7
100.6
90.3
94.5
99.5
99.4
96.3
25.2
32.1
17.5
15.8
14.0
17.6
37.8
37.7
36.9
37.0
36.1
36.5
18.1
18.2
18.3
17.7
17.8
18.0
•7 I
Liabilities
Assets
Bank of France
(Figures in millions of francs)
Gold
Foreign Domestic Security
bills
loans
exchange
Negotiable
securities
Deposits
Other
assets
Note
circulation
Government
Other
Other
liabilities
1933—May 26.
June 30.
July 28.
Aug. 25.
Sept. 29.
Oct. 27.
Nov. 24.
Dec. 29.
80,951
81, 243
81,976
82, 227
82,095
81,032
77,822
77,098
3,887
3,990
3,975
2,652
2,632
2,586
1,250
1,158
3,449
2,791
3,461
3,207
3,475
3, 560
4,092
4,739
2,675
2,766
2,661
2,688
2,765
2,781
2,814
2,921
6,582
6,489
6,463
6,417
6,393
6,238
6,186
6,122
8.534
9,243
8,503
8.543
8,716
8. 450
8, 533
8,251
83,267
84, 708
82,853
81,143
82,994
81,099
80, 368
82,613
2,265
2,338
2,752
2,775
3,685
4,027
2,956
2,322
18, 393
17.376
19, 267
19.657
17, 242
17, 301
15 016
13,414
2,152
2,100
2,168
2,158
2,156
2,220
2,359
1,940
1934—Jan. 26..
Feb. 23.
Mar. 30.
Apr. 27.
May 25.
June 29
77,055
73,971
74,613
75, 756
77, 466
79, 547
1,130
1,070
1,068
1,066
1,094
1,156
4,486
5,963
6,198
5,707
5,011
4,386
2,893
2,932
2,972
3,016
3,060
3, 076
6,119
6,114
6,007
5,973
5,950
5,929
7,870
7,960
8,229
8,152
8,202
0)
79,474
81,024
82,833
81, 502
79.992
82, 057
2.270
1. 868
1,721
2,024
2,996
3,289
15,836
13, 067
12, 632
14,199
15, 681
15,189
1,972
2,052
1,900
1,944
2,114
0)
Liabilities
Assets
Reichsbank
Reserves
(Figures in millions of reichsmarks)
Gold
Foreign
exchange
Other
Treasury bills (and Security
bills
loans
checks)
Securities
Other
assets
Note
circulation
Deposits
Other
liabilities
1933—May 3 1 . .
June 30..
July 31. _
Aug. 3 1 . .
Sept. 30..
Oct. 31—
Nov. 3 0 Dec. 30..
372
189
245
307
367
396
405
386
3,078
3,212
3,171
3,151
3,289
3,147
3,001
3,177
166
210
165
163
205
143
163
183
317
321
320
320
320
319
518
581
618
747
736
749
688
799
773
735
3,469
3,482
3.492
3, 521
3,625
3,571
8,542
3,645
439
447
412
415
465
416
478
640
782
834
820
841
850
850
871
836
934-Jan. 31-.
Feb. 28.,
Mar. 29._
Apr. 30...
M a y 31..
June 30 P
376
333
237
205
130
70
2,845
2,766
3,144
3,140
3,174
3,392
81
248
144
140
125
171
620
666
681
639
643
685
843
801
685
760
860
780
3,458
3,494
3,675
3,640
3,635
3,777
498
530
547
515
538
623
863
802
768
788
778
775
p Preliminary.
Not yet available.
NOTE.—For explanation of table see BULLETIN for February 1931, pp. 81-83.
1
478
FEDERAL RESERVE BULLETIN
JULY
1934
CENTRAL BANKS—Continued
[Figures are for last report date of month]
1934
1933
Central b^nk
1934
May
Apr.
Mar
May
7,124
24, 266
2,871
3,044
11,445
15,531
10, 329
7,224
24, 532
2,944
2,883
11,710
15, 394
10,480
7,316
27, 852
2,919
2,564
13,627
19,145
7,879
Apr.
May
Central Bank of China—Continued.
Note circulation
Deposits—Government. _.
Bank__
Other
Other liabilities
Bank of the Republic of Colombia
(thousands of pesos):
Gold at home and abroad 3
16, 336
Foreign exchange
2,871
Loans to member banks
3,498
Note circulation
36,950
Deposits,.
15, 508 15, 508 11,507
25,406
28, 625 28, 625 24, S52 National Bank of Czechoslovakia
(millions of koruny):
Gold *
2,662
965
Foreign balances and currency 4._
27
22,912 18, 533
23, 546
Loans and advances
1,390
14, 528 14, 634 16, 390
Note circulation
33,990
36,109 36,108
5,179
71,367
Deposits
80, 313 78,893
919
41,961 Danish National Bank (millions of
46, 551 40,910
kroner):
Gold
133
241
Foreign bills, etc
241
10
150
189
0
Loans and discounts
0
69
39
0
38
Note circulation-_
36
358
0
24
278
301
Deposits
118
264
308
624
624
659 Bank of Danzig (thousands of gulden):
624
931
970
898
981
Gold
— 26, 984
190
163
193
154
Foreign exchange of the reserve.. 16, 778
Other foreign exchange
2,776
Loans and discounts
15, 739
2, 699
40, 706
Note circulation.__
2,703
2, 671
2,700
717
13, 674
Deposits
723
741
705
347
347
363 Central Bank of Ecuador (thousands
347
3, 517
of sucres;
3,463
3,456
3,638
386
Gold at home and abroad
_.
449
433
291
Foreign exchange
Loans and discounts
14, 543 18,604
Note circulation
4,115
10, 069
Deposits
21,707 27,129 National Bank of Egypt 2 (thousands
57, 254 44,127
of pounds):
76, 383 31, 354
Gold
Foreign exchange
460
495
458
573
Loans and discounts
382
300
415
156
British, Egyptian, and other
2,721 2,703
2,712
2,614
Government securities
20
20
20
40
Other assets
3,234 3,398
3,178
2,997
Note circulation...
Deposits—Government.Other
1,547
1,547 1,547
1,521
Other liabilities
26
2
1 Bank of Estonia(thousands of krooni)
19
20, 454
111
134
149
79
Gold
6,660
941
1,014
1,032
860
Net foreign exchange
17, 229
2,783
2,873
2, 783 2,783
Loans and discounts
32, 560
2,534 2,603
2,574
2,673
Note circulation
4,274
1,622 1,625
1,673
1,527
Deposits—Government
8,572
Bankers'
3,219
Other
97
Gold at home and abroad
Bank of Finland (millions of markForeign exchange for account of:
kaa):
323
71
72
Bank
Gold.
7
7
7
Exchange commission
Balances abroad and foreign
98
143
117
Loans and discounts
credits
322
721
679
721
Government debt
Foreign bills544
511
538
Note circulation
Domestic bills
1,244
352
353
376
Deposits
Note circulation
491
Central Bank of China 2 (thousands
Other sight liabilities..
of yuan):
Bank of Greece (millions of drach1,984
7,181 4,248
Gold
—
mas):
4,131
116, 720 112, 556 76,825
Silver.
Gold and foreign exchange
3,862
40, 229 41,478 13,863
Due from banks abroad
Loans and discounts.
3,355
77,208 67,989 22,085
Due from domestic banks
Government obligations
5,117
132,133 135,131 126,143
Loans and discounts.
Note circulation
6,780
8,371
13,115 13,180
Securities.Other sight liabilities—
46
51,981 45,520 47,694
Other assets.
--Liabilities in foreign exchange..,.
1 Beginning Apr. 30,1934, gold valued at rate of 1 schilling=0.16667 gram of fine gold instead of 0.21172 as formerly.
at market.
2 Items for issue and banking departments consolidated.
3 Gold acquired since Mar. 20, 1934, valued at purchase price.
* Gold content of koruna reduced on Feb. 17, 1934, from 44.58 milligrams of fine gold to 37.15 milligrams.
r Revised.
National Bank of Albania (thousands of francs):
Gold...
Foreign exchange
Loans and discounts
Other assets—
Note circulation
D e m a n d deposits
Other liabilities.
Commonwealth Bank of Australia
(thousands of pounds):
Issue department:
Gold and English s t e r l i n g . . .
Securities
Banking department:
Coin, bullion, and cash
London balances
--.
Loans and discounts
Securities..
Deposits..
Note circulation __
Austrian National Bank (millions of
schillings):
Gold 1
Foreign exchange of the reserve..
Other foreign bills 1
Domestic bills
Government d e b t s . .
Note circulation
Deposits
National Bank of Belgium (millions
of belgas):
G-ld
Domestic and foieijm bills.
Loans to State
Note circulation
Deposits
Central Bank of Bolivia (thousands
of bolivianos):
Gold at home and abroad
Foreign exchange
Loans and discounts
Note circulation
Deposits.
Bank of Brazil (millions of milreis):
Currency
Correspondents abroad
Loans and discounts
Note circulation.
Deposits.
National Bank of Bulgaria (millions
of leva):
Gold
N e t foreign exchange in reserve..
Total foreign exchange
Loans and discounts
Government obligations..
Note circulation...
Other sight liabilities
Central Bank of Chile (millions of
1933
Central bank
Mar
May
70,029 69,077
46,192
239, 534 215, 396 132,514
37,098 41,579
38,987
7,226
8,424 10, 387
84, 680 85,626
68,885
15, 538
2,345
6,741
35,926
27, 056
14, 989
2,702
6,594
34,903
28, 430
14, 783
3,271
3,751
25, 256
19,115
2,662
37
1,317
5,242
752
2,661
64
1,562
5,544
697
1,707
998
1,597
6,138
632
133
12
67
366
111
133
16
72
369
133
15
71
331
74
987
802
308
685
677
552
30,160
11,340
121
15, 881
41, 280
10, 848
31,914
7,483
1,409
8,969
37, 083
7,341
16, 878
7,352
49, 776
40, 859
22, 511
16, 417
6,916
50, 018
37,711
23, 070
14, 275
1,874
40,898
28, 311
19,399
6,546
3,209
4,336
6,663
1,739
4,762
25,
16,
.
15,
40,
12,
1
6,546
i 2,984
I 4,297
! 35,241 35, 320
: 3,558
3,458
19, 266 19, 544
5,118
5,697
19, 792 20, 402
7,806
7,872
34, 522
3,522
17, 795
5,605
19,921
7,887
20,432
6,104
19, 330
34, 540
4,840
7,569
2,954
18, 721
1,201
20, 754
30, 247
3,094
7,554
2,731
20, 440
6,377
18, 510
34,143
4,629
7,739
2,707
323
323
309
1,031
328
793
1,309
440
1,054
328
717
1,322
332
756
353
749
1,124
465
4,052
3,791
3,355
5,114
6,484
64
3,966
3,594
3,355
5,098
6,066
72
2,531
1,867
3,368
4,574
3,555
164
Foreign exchange valued
JULY
479
FEDERAL RESERVE BULLETIN
1934
CENTRAL BANKS—Continued
[Figures are for last report date of month]
1934
1933
May
National Bank of Hungary (millions
of pengos):
79
11
565
49
29
342
69
118
178
Foreign bills, etc
Loans and discounts
Advances to treasury
...
Other assets
Note circulation
_
Deposits
Certificates of indebtedness
Miscellaneous liabilities
Bank of Italy (millions of lire):
6,667
Gold at home
35
Credits and balances abroad
4,904
Loans and discounts
12,889
Note circulation300
Public deposits.._
1,426
Other deposits
Bank of Japan (millions of yen):
452
Gold
710
Advances and discounts
491
Government bonds
1,135
Notes issued
392
Total deposits
Bank of Java (millions of florins):
116
Gold
._
—
1
Foreign bills
59
Loans and discounts
185
Note circulation
29
Deposits
Bank of Latvia (millions of lats):
44
Gold
4
Foreign-exchange reserve
65
Bills
63
Loans—
__
_..
31
Note circulation
57
Government deposits __
_.
111
Other deposits..
Bank of Lithuania (millions of iitu):
54
Gold
12
Foreign currency...
79
Loans and discounts..
83
Note circulation
62
Deposits—
Netherlands Bank (millions of florins):
810
Gold
1
Foreign bills
Loans and discounts.
178
Note circulation
901
122
Deposits
Bank of Norway (millions of kroner):
135
Gold
7
Foreign balances and bills
_.
272
Domestic credits
314
Note circulation
_
2
Foreign deposits
_
77
Total deposits
Central Reserve Bank of Peru (thousands of soles):
Gold and foreign exchange
Bills....
Note circulation
Deposits
_
Bank of Poland (millions of zlote):
Gold
_
46
Foreign exchange
703
Loans and discounts
911
Note circulation
220
Other sight liabilities
Bank of Portugal (millions of escudos):
Gold
367
Other reserves
1934
1933
Central bank
Central bank
Apr.
79
11
570
49
28
351
68
118
175
Mar.
79
15
583
49
30
360
79
120
171
6,840 6,874
44
40
5, 484 6, 037
12,987 12,963
300
300
1,256
989
429
773
494
1,272
330
425
859
587
1,271
497
113
0
61
186
32
113
0
58
191
28
44
4
65
64
32
58
108
44
3
65
64
33
57
107
54
13
83
85
62
54
13
86
90
61
792
1
213
955
92
1
172
901
103
135
10
278
322
2
73
135
12
274
330
2
61
41,852
54,994 56,185
64,557 64,941
22,582 26, 046
483
58
709
931
230
481
67
745
955
232
874
385
867
360
May
May
Apr.
Bank of Portugal—Continued
Discounts and advances
__.
317
326
1,051 1,051
Government obligations
1,914 1,890
Note circulation
Other sight liabilities
840
National Bank of Rumania (millions
of lei):
Gold..
10, 057 10,034
Foreign exchange of the reserve..
143
210
Other foreign exchange
14
1
Loans and discounts.
_. 6,915 8,731
State debt
5,681 5,681
6,688
Note circulation
21,021 21,258
369
Demand deposits
_
7, 506 7,353
5,228 South African Reserve Bank (thou
12,991
sands of pounds):
300
Gold
• 18, 672 18, 044
1,285
Foreign bills
' 23,082 22, 450
Domestic bills
:
11
10
425
Note circulation
_
I 10,933 11,616
728
Deposits—Government
! 3.312 3,370
413
1
Bank
28,679 27, 649
1,055
Other
; 3,669 2,730
418
Bank of Spain (millions of pesetas):
Gold...
i 2,263 2, 202
107
Silver
681
678
11
;
Balances abroad
_
284
287
37
Loans and discounts
. 2,370 2, 448
:
199
Note circulation
4, 607 4,649
37
Deposits
1,000
947
45 Bank of Sweden (millions of kronor):
Gold
_'..
368
3
367
Foreign bills, etc
_.
462
67
491
Loans and discounts
59
50
55
Note circulation
60 L
32
617
62
Deposits
457
476
97 Swiss National Bank (millions of
francs):
48
Gold
_—
1,636
1,634
10
Foreign balances and bills
8
4
87
Loans and discounts
_.
132
142
92
Note circulation
_
1,354 1,388
51
Demand deposits
444
405
Central Bank of the Republic of
Turkey (thousands of pounds):
837
Gold
26, 111 25, 695
73
Foreign exchange
3,813 3,033
127
Government securities
153, 229 153,392
952
Other securities
30, 885 30,922
139
Other assets
32,115 30, 584
Note circulation
158,057 158,190
151
Deposits
29,436 27,157
25
Other liabilities
58, 661 58,279
228
Bank of the Republic of Uruguay
296
(thousands of pesos):
2
Gold
49,430 49,434
91
Loans and discounts
95,013
Other assets
41, 342 44,105
Note circulation
74,978 78,494
53,530
Deposits—Demand
31,271 33,044
27,198
Time
41, 587 41,408
60,012
Judicial and admin14, 499
istrative
2,729 2,709
Other liabilities
35,220 34,870
472
89 National Bank of the Kingdom of
783
Yugoslavia (millions of dinars):
1,004
Gold.
1,762
1,766
156
120
Foreign exchange
146
1,849
Loans and discounts
1,835
2,319 2,317
Advances to State
701
Note circulation
_. 4,119 4,169
1,070
1,135
Other sight liabilities.
385
97
16
466
51
22
347
65
0
211
Mar.
May
334
1,051
1,965
755
331
1,053
1,889
635
10, 010
215
2
9,074
5,681
21, 479
7,318
721
25
9,863
5,726
21, 470
7,736
17, 740
22,341
6
11,975
3, 705
27, 281
1,824
13,257
18, 745
816
9,503
1,721
24, 294
2,905
2, 262
674
283
2,510
4, 668
898
2, 259
634
280
2,510
4,703
915
374
513
54
644
484
266
264
152
544
317
1,746
1
136
1,405
482
2,056
4
58
1,514
638
25,404 22,045
3,431
268
152, 575 152,994
30,846 28,281
33, 370 40, 748
159,067 161, 682
29,184 26, 626
57,374 56,030
49,869
97,868
45,465
79,483
35,394
41,339
48,442
100,965
43, 075
81, 027
28, 709
41,828
2,701
34, 286
3,024
37,894
1,766
129
1,876
2,317
4,232
944
1,796
146
2,325
2,414
4,453
944
480
FEDEBAL RESERVE BULLETIN
JULY 1934
COMMERCIAL BANKS
Liabilities
Assets
England
Cash in
(10 clearing banks. Figures in millions vault and Money at
Loans to
of pounds sterling)
due from call and Bills dis- Securities customshort
counted
Bank of
ers
notice
England
1933—July
August
October. .
November
December
1934—January
February
March
April
May.
362
359
355
343
317
311
284
250
202
212
223
96
91
91
89
99
119
130
118
120
132
131
205
208
215
218
216
213
223
209
219
222
218
Sfiptfimhftr
554
563
563
559
569
565
558
560
547
534
542
Deposits
Other
assets
221
216
215
222
228
237
232
231
226
230
225
771
762
753
752
741
740
738
746
757
763
759
Other
Demand 1
Total
1.973
L, 966
,958
1,951
L,928
L,941
L.920
L.867
1,831
.853
1,858
Assets
8,738
8,027
7,907
7,094
6,333
5,870
6,373
4,650
5, 001
5,308
.
1,723
1,600
1,504
1,480
1,545
1,416
1, 574
1,724
1,634
1,578
20,236
19,851
19,835
20,229
19,876
19,848
19,169
18,174
17,990
17, 981
933
928
924
916
905
900
893
881
880
890
(2)
235
233
233
233
241
244
244
246
240
240
238
Liabilities
France
Cash in
Loans,
(4 large banks. Figures in millions of vault and
francs)
due from Due from Bills dis- including
banks
counted security
Bank of
loans
France
1933—July
August
September
October
November
December
1934—January . . .
February
March
April
993
990
989
983
980
1,015
974
932
910
919
(2)
Time1 liabilities
7,848
7,813
7,792
7,880
8,127
8,309
8, 537
8,956
8,514
8,600
Deposits
Other
assets
1,521
1,565
1,540
1,626
1,707
1,827
1,034
1,130
1,202
1,224
Total
35,676
34,426
34,181
33, 786
33,009
32,635
32,809
30, 736
30,390
30, 660
Demand
34,671
33,419
33,217
32,811
32,075
31, 773
31, 969
29,891
29,571
29, 827
Assets
Time
1,005
1,007
964
976
933
862
841
845
819
833
Other
Own acceptances liabilities
379
360
253
257
258
273
284
334
345
318
4,011
4,069
4,144
4,266
4,322
4,362
3,592
3,564
3,606
3,715
Liabilities
Germany
Cash in
Loans,
(Reporting banks. Figures vault anc
in millions of reichsmarks)
due from Due from Bills dis- including Securities
counted security
banks
Reichsloans
bank
Deposits
Other
assets
Total
Demand
Time
Credits
obtained
Other
from
banks for liabilities
customers
1933—July
. .
August
September
October.
November.
169
150
186
152
159
646
1,907
1,937
1,870
1,962
1,970
4,682
4,677
4,627
4,642
4,608
2,383
2,297
2,303
2,304
2,331
1,163
1,175
1,178
1,207
1,222
7,018
6,971
6,960
6,993
7,015
3,237
637
657
614
621
3,155
3,242
3,200
3,155
3,781
3,816
3,717
3,793
3,859
852
805
753
733
709
3,081
3,097
3,110
3,155
3,187
1934—January 2
February
March
April...
May.
139
179
166
169
612
610
603
619
2.127
2,027
2,103
2,160
4,458
4, 482
4.390
4,309
2,387
2,417
2,477
2,478
1,196
1,192
1,195
1,184
7,159
7,153
7,166
7,185
3, 254
3, 294
3, 260
3,260
3,905
3,860
3,906
3,925
661
646
648
631
3,100
3,108
3.120
3,103
Assets
Canada
(10 chartered banks. Figures
in millions of Canadian dollars)
1933—July...
. August
September
October _.
November
December
1934—January.
February
March—
_.
April
May
Entirely in Canada
Liabilities
Deposits payable in Canada
excluding interbank deposits
Security
loans
Cash in
and net Securities
Other
vault and Security loans and due from
in cenbills dis- foreign
loans
tral gold
banks
counted
reserves
197
192
187
191
210
197
194
193
187
187
187
109
105
110
111
105
106
104
102
103
101
103
1,042
1,026
1,031
1,037
1,008
1,036
1,012
1,011
1,029
1,044
1,037
151
146
176
156
149
134
135
144
159
169
176
866
866
881
882
861
861
832
833
835
837
830
Other
assets
circulation
448
437
435
450
444
432
428
442
427
448
469
120
121
129
122
121
121
113
117
128
121
119
Other
liabilities
Total
578
551
591
633
567
563
526
530
526
568
597
1,958
1,924
1,964
1,983
1,925
1,920
1,877
1,885
1,893
1,944
1,964
i Excluding deposits of the National Bank relating to offices outside England, which are included in the total.
NOTE.—For back figures and explanation of table see BULLETIN for October 1933, pp. 639-646
Demand
2
Time
1,380
1,373
1,372
1,350
1,358
1,357
1,351
1, 355
1,367
1,376
1,368
733
727
727
721
732
725
714
724
718
722
719
Figures not available.
481
FEDERAL RESERVE BULLETIN
JULY 1934
DISCOUNT RATES OF CENTRAL BANKS
Central bank of—
Date effective
In effect Dec. 1,1931.
Dec. 10
Feb. 18, 1932._.
Mar. 9._.
Mar. 10
Mar. 17
Mar. 21
Apr. 9
Apr. 19. .
.
Apr. 2 1 . .
Apr. 28
May 2
May 12..
_.
June 30
Sept. 22
Jan. 9, 1933
May 12
June 29
July 15
July 29
Aug. 15. .
Sept 4
Sept. 19.
Dec. 1 1 . . .
Feb. 9,1934
June 1
In-effect July 1,1934.
England
GerFrance many
Italy
6
8
7
7
Nether- Switzerlands
land
6
6
5M
2K
3
5
5
2A
4
4
3
3H
3
4
3
71/2| Nov. 16,1933 Japan
4H| June 28, 1934 Java
Latvia
6 July 5,1932 Lithuania
7
3
Jan. 2,1934
Aug. 23,1932
July 18,1933
/
4
Jan. 25,1933
4
6,1933
30,1933
30,1932
1,1932
Dec.
Oct.
Oct.
Feb.
2
7
Mav
Nov.
Nov.
Feb.
20,1933
14,1933
18,1932
16,1933
2
Norway
Peru..
Poland
Portugal
In effect
since—
3.65 July
4
July
Jan.
6 2 Apr.
3,1933
1,1934
1,1933
1,1930
May
May
Oct.
Dec.
24,1933
20,1932
26,1933
8,1933
_.
6
5
Rumania
South Africa.
Spain..
Sweden
_
6
Turkey
U.S.S.R.. . .
Yugoslavia...
6
Apr. 5, 1933
May 15,1933
Oct. 26,1932
Dec. 1,1933
8
7
Mar. 2,1933
Mar. 22,1927
Feb. 9.1934
Changes since June 1: Austria—June 28, down from 5 to 4 ^ percent;
Jam—July 1, down from -\y2 to 4 percent.
2H
3
Albania
Austria
Belgium
Bolivia
Finland
Greece.
Hungary
India
42
VA
Rate
July
Central
bank o—
f
Danzig
Denmark...
Ecuador
Estonia
2
4
2
In effect
since—
Bulgaria
Chile
Colombia..
Czechoslovakia
3
5
2
Rate
Julv
1~
Central
bank of—
2
23-12
MONEY RATES IN FOREIGN COUNTRIES
England (London)
Month
j Bankers'
acceptances,
3 months
Treasury
bills, 3
months
1933—April
May
June
July
August
September
October.._
November.
December.
.59
.50
.50
.48
.41
.44
.79
1.05
1.06
1.01
.95
.95
.96
.91
Bankers'
Private
Day-to-day allowance
discount
money
:
on deposits
rate
.50
.37
.40
.40
.30
.31
.73
.94
1.15
1934—January...
February _.
March
April
May
.90
.86
.84
.89
.85
Netherlands (Amsterdam)
Germany (Berlin)
Money for Day-to-day
1 month
money
Private
discount
rate
Money for
1 month
3.87 j
5.25
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.05
5.24
4.93
5.19
4.94
5.00
5.11
5.18
4.97
.66
2.11
2.18
3.54
1.11
.77
.50
.45
.52
3.87
3.87
3.87
3.87
3.87
4.78
4.91
5.00
5.11
5.13
4.74
4.78
4.89
4.76
4.72
.50
.78 |
1.24
2.07
P 1. 22
3.87 i
3.87 |
3.87 I
3 87
3.87
3.87
3.87
3.87
H i
81
'A !
Switzerland
Belgium
(Brussels)
France
(Paris)
Italy
(Milan)
Private
discount
rate
Private
discount
rate
Private
discount
Private
discount
rate
Month
rate
1933—April
May
June
July
_.
August
September.
October
November.
December.
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
2.50
2.41
2.31
2.31
2.31
2.27
2.21
2.12
2.25
1.87
1.76
1.50
1.39
1.45
1.13
1.25
1.85
2.26
4.00
4.00
4.00
4.00
4.00
3.55
3.50
3.50 !
3.00
1934—January
February..
March
April
May
1.50
1.50
1.50
1.50
1.50
2.14
2.05
2.07
2.14
2.12
2.59
2.75
2.70
2.60
3.00
3 00
3.00
4.00
3.00
:
!
!
j
!
Sweden
(Stockholm)
Hungary
Prime
commercial paper
Day-to-day ^%UP
money
A
3K
3^2
mnn+\,o
months
3.1/2-6
3 -5
VA
34
33/
2H-4H
3}/ 2
1.00
1.69
2.06
2.64
1.08
LOO
1.00
1.00
1.00
1.00
1.00
1.07
1.85
PI. 23
Japan (Tokyo)
\™f™™\
bills
nFoSy
y
: overnight
n~arv.inh
5. 48-5.84
5.11-5.84
5.11-5.48
5.11-5.48
5.11-5. 48
5.11-5.48
5.11-5.48
5.11-5. 48
5.11-5.48
2.37
2.19
2.74
2.37
2.37
2.56
2.56
2.56
2.56
5.11-5.48
5.11-5.48
5.11-5.48
5.11-5.48
2.37
2.56
2.56
2.37
I
p Preliminary.
NOTE.—For explanation of table see BULLETIN for November 1926, pp. 791-796; April 1927, p. 289; July 1929, p. 503; November 1929, p. 736; and
May 1930, p. 318.
482
FEDERAL RESERVE BULLETIN
JULY 1934
FOREIGN EXCHANGE RATES
[Averages of daily quotations based on noon buying rates for cable transfers in New York. In cents per unit of foreign currency]
|
AusAustria Belgium Brazil Bulgaria Canada
Argentina l
tralia 2 (schil- (belga) (milreis)! (lev) 3 (dollar)
(peso) (pound) ling) 3
Year and month
Chile
(peso) i
I
China
(yuan)
Colombia
(peso) 1
Cuba
(peso)
Czecho- Denslovakia mark
(koruna)! (krone)
41.9007
29.9166
22. 4369
21. 7357
«28. 5779
26.1289
29. 2666
28.0737
29. 6843
29.8462
32.9030
33.4468
34. 0007
34.3077
34. 6190
34.1506
32. 4621
33. 0523
96. 5512
96.4930
96.5697
95. 2750
81.6966
86. 2100
86. 2100
86. 2100
78.1476
65. 7136
66.7200
63.9668
66. 9396
69. 9523
67. 6663
59. 9228
61. 4642
57. 8900
99. 9647
99.9515
99. 9295
99.9409
99.9464
99. 9212
99.9199
99.9481
99.9583
99.9223
99.9617
99. 9579
99.9578
99. 9616
99. 9535
99.9288
99.9329
99. 9726
Italy
(lira)
Japan
(yen)
5. 2334
5. 2374
5. 2063
5.1253
6.7094
6. 3789
7. 3697
7. 2176
7.8076
7.8208
8. 4331
8. 2204
8. 3076
8. 5757
8. 5763
8.5641
8. 5176
8. 5989
46. 0997 ! 48.1830 40.1622
49. 3898 47. 1331 40. 2251
40. 2298
48. 8509 '35.4919
28.1112 31.8500 40. 2949
51. 7209
25. 6457 28.1025
25. 7587 27. 6650 49. 0086
28. 7727 27. 9968 56.1833
55. 3799
26.9026 28.1103
59.8831
27. 2539 28.1492
27. 7670 28.1692 59. 9529
30.3618 27. 7989 64. 5642
30. 7418 27. 7355 62.8466
30.1136 27. 7434 63. 6167
29. 7536 27.7313 j 66. 0382
67, 2956
30. 0093 27.7224
30. 3124 27.7222 | 67.8471
30. 2276 27. 7432 I 67. 9056
29.9041 27.7492 ! 67. 8148
I
1929_
1930.
1931
1932.
1933
1933—June
July
August
September
October
November
December
1934—January
February
March
April
May
June
Year and month
1929
1930
1931
1932
1933
1933—June
July
August
September
October
November
December
1934—January
February
March
April
May
June
_.. 95.1274
83.5050
66. 7375
58. 4433
72. 8009
71. 0601
80. 7251
79.4328
86. 0861
86.1188
92. 0439
33. 3311
33. 5007
33. 5494
33.9553
34. 3475
34.0413
33.6552
14. 0575
14. 0891
14. 0227
13.9599
15. 4478
14. 2007
15. 6719
15. 4794
16. 6534
16. 7694
18. 0434
17. 6811
17.9115
18.5650
18.9114
18. 8724
18. 9429
18.9021
13. 9124 11.8078
13.9524 10. 7136
13.9285
7.0290
13.9137 7.1223
17. 8996 7. 9630
17. 0460 7. 6369
19.4505
7. 8727
19.1458 8.0331
20. 6994 8.1508
20. 7215 8. 4634
22. 3176 8.5660
21. 7280 8. 5995
22. 0360 8. 5637
22. 8893 8.4666
23. 2981 8.5420
23. 4416 8. 6004
23.4137 8. 6046
23. 3628 8. 4734
Egypt
(pound)
England Finland France
(pound) (markka; (franc)
498. 0689
498. 6002
465.1111
359. 5406
434. 3908
424. 0440
477. 0204
461. 7534
478. 1479
460. 4633
527. 4832
524.6387
518. 2824
516. 0390
522.3447
528.4813
485. 6879
486. 2126
453. 4990
350. 6067
423. 6821
413. 5581
464.9915
450. 2670
466. 4722
466.8290
514.9737
511. 5890
504, 9336
503. 2596
509. 3917
515. 3425
510. 6279
504. 8046
2. 5160
2. 5169
2. 3875
1. 5547
1. 8708
1.8241
2.0511
2.0008
2. 0693
2. 0683
2. 2700
2. 2700
2. 2449
2. 2288
2. 2470
2. 2702
2. 2540
2. 2311
0. 7216
.7209
.7163
.7193
1. 0039
.8142
.9977
1.0347
1.2434
1. 2590
1. 6378
1.3436
1. 3472
1. 3464
1. 3324
1. 3295
1. 3154
1. 2503
99. 2472
99.8424
96. 3258
88.0896
91. 9587
89. 8853
94. 4683
94. 2796
96. 4734
97. 5958
101.1829
100. 5515
99.5246
99.1675
99. 7871
100. 2070
100.1859
100. 7936
12. 0601
12. 0785
12.0669
7.9079
7. 6787
7. 5210
8. 3752
8.1986
8.6743
8. 8731
10. 0983
9. 5952
9.4476
9. 5966
10.1294
10. 2595
10. 2531
10. 2233
Germany Greece Hong Hungary India
Kong
(reichs- (drach- (dollar) (pen go)r (rupee)
ma)
mark)
3.9161 23. 8086 1. 2934
3. 9249 23. 8541 1. 2959
3. 9200 23. 6302 1. 2926
.8320
3. 9276 23. 7492
.7233
5. 0313 30. 5179
.6917
4. 8035 28. 8097
.7902
5. 4588 33. 2627
.7743
5. 3749 32. 7144
.8372
5. 7724 35. 4307
.8397
5.8167 35. 4267
.9053
6. 2678 38. 2361
.8856
6.1216 37. 3247
.8949
6.2110 37. 5872
.9253
6. 4648 38.8841
.9413
6. 5801 39. 6599
.9452
6. 6161 39. 5890
.9462
6.6131 39.4712
.9449
6. 5993 38. 2953
47.1669
33. 8530
24. 3305
23. 4604
29. 4516
29.1358
32. 9584
31. 5922
33.1050
33. 2821
36. 6896
37.1537
37.6811
38. 0999
38. 6842
38.1556
36. 2293
36. 4890
17. 4414
17. 4939
17. 4522
17. 4460
22. 3598
21. 2415
24. 5147
24. 2387
26. 0897
26. 3520
28. 2302
27. 6855
28. 0425
29.1191
29. 6125
29. 7652
29. 7559
29. 7529
36. 2020
36.0672
33. 6895
26. 3468
31. 8159
31. 0652
34. 9283
33. 8489
35. 0051
35. 0366
38. 3408
38. 3870
37.9739
37.8567
38.3335
38. 7557
38. 3329
37. 9072
2.9609 |
2.9640
2.9619 I
2. 9618
3.8232
3. 6527
4.1545
4. 0777
4. 4089
4. 4172
4. 7600
4.6487
4. 7039
4. 4432
4.1531
4.1720
4.1755
4.1590
26. 6802
26. 7650
25.0581
18. 8317
19. 0709
18.4423
20. 7682
20.1157
20. 8344
20.8413
22.9975
22.8463
22. 5487
22.4721
22. 7384
23.0051
22. 7948
22. 5395
Mexico '
(peso) |
Straits
Union of
New
RumaSettle- Sweden Switzer- Turkey South Uruguay!
Spain
Zealand2 Norway Poland Portugal
nia
land
(krone) (zloty) (escudo) (leuj (peseta) ments (krona) (franc) (pound) Africa 2
(pound)
(dollar)
(pound)
Year and month
1929
1930.
1931
1932
1933
1933—June.
July
August
September
October
November
December
1934—January
February
March
April
May...
June
480.83
458. 60
351. 50
279.93
337. 07
329. 22
369. 44
358.13
371. 26
371.47
409. 75
407. 50
402. 44
400. 78
405. 86
410. 54
407.10
402. 24
_
483. 21
468. 22
415. 29
320.19
340. 00
330. 09
370. 19
359. 02
372.17
372. 40
411.04
408. 72
403. 47
401.81
406. 84
411.63
408. 28
403. 39
26. 6827
26. 7598
25. 0546
18. 0039
21. 4292
20.8811
23. 3627
22. 6451
23. 4400
23. 4451
25. 8723
25. 7075
25. 3722
25. 2835
25. 5834
25. 8824
25. 6463
25. 3559
11.1940
11.2051
11.1970
11.1823
14. 4135
13. 8229
15. 6202
15. 4348
16. 6963
16. 7103
18. 0564
17. 7024
17. 9281
18.5984
18. 9043
18. 9554
18.9514
18. 8879
4.4714
4. 4940
4. 2435
3.1960
3. 9165
3. 7694
4. 2468
4.1521
4. 4655
4.5315
4.8623
4. 6892
4. 6505
4. 6321
4. 6709
4. 7085
4. 6677
4. 6253
0. 5961
.5953
.5946
.5968
.7795
.7448
.8766
.8374
.8934
.9112
.9817
.9547
.9614
.9923
1.0013
1. 0060
1. 0032
1. 0020
14. 6833
11. 6670
9.5453
8. 0438
10. 7189
10. 3638
11. 6540
11. 4565
12.4087
12. 4343
13.1129
12. 7918
13.0042
13. 3001
13. 6175
13. 7024
13. 7050
13.6776
56.0117
55.9639
52. 4451
40. 3970
49. 2320
47. 963C
54. 0460
52. 3634
54. 2920
54. 5740
60. 0625
59.7025
58. 9185
58. 7852
59. 6007
60. 3487
59.8173
59.1709
26. 7839
26.8543
25. 2540
18. 4710
22. 0324
21. 2819
23. 9784
23. 2263
24. 0532
24. 06S0
26. 5491
26.3911
26. 0418
25.9554
26. 2620
26. 5643
26. 3199
26. 0211
19. 2792
19. 3820
19. 4009
19. 4049
24. 8355
23. 5665
26. 9583
26. 5265
28.7299
28. 7902
31. 0223
30. 2473
30. 6420
31. 7374
32. 2857
32. 4593
32. 5277
32. 4969
48. 4105
47. 0608
47.1814
47. 2854
60. 4396
57.8085
65. 7080
64. 4507
69.8292
67. 2262
75. 7400
73. 7068
75. 0781
77. 7923
79.1507
79. 6284
79. 6204
483. 27
483. 79
480. 76
476. 56
414.98
408. 76
459. 33
444. 39
448. 57
461. 23
509.29
505. 76
499. 09
497. 42
503. 42
509. 43
504. 80
499.10
98. 6294
85. 8650
55.3572
47. 0639
60.3360 !
55.9871 i
65.1372 j
64.7589
70.1510
70.7755 i
76.2484 i
74.5870 !
75. 8051
78.7499
80.1921
80. 6081
80. 5539
80. 2G68
1. 7591
1.7681
1.7680
1. 6411
1. 7607
1.6708
1. 9032
1.8909
2. 0274
2. 0443
2. 2035
2.1628
2.1818
2. 2468
2. 2648
2. 2718
2. 2725
2. 2702
1 Nominal since April 1933.
2 Nominal since April 1934.
8 Partly nominal since April 1933.
4
Paper peso, equivalent to 44 percent of gold peso, quoted in place of latter beginning Dec. 13, 1933. Average for 1933 is for gold peso from
Jan. 1 to Dec. 10, inclusive. Average for December 1933 based on paper peso for Dec. 13-31. Average of gold peso for Dec. 1-10 was 75.8904 cents.
No quotations Dec. 11 and 12.
5 Beginning Apr. 10, 1933, new yuan, containing 23.4934 grams of pure silver, quoted in place of old yuan, containing 23.9025 grams of pure silverAverage for 1933 is for new yuan from Apr. 10 to Dec. 31, inclusive; average for old yuan from Jan. 1 to Apr. 9, inclusive, was 20.2103 cents. Average for April based on new yuan for Apr. 10-30. Average of old yuan for Apr. 1-9 was 20.5383 cents.
6
Silver peso quoted in place of gold peso beginning July 30, 1931. Average for 1931 is for silver peso from July 30 to Dec. 31, inclusive. Average for gold peso for Jan 2-July 29 was 47.6510 cents.
483
FEDERAL RESERVE BULLETIN
JULY 1934
PRICE MOVEMENTS IN PRINCIPAL COUNTRIES
WHOLESALE PRICES—ALL COMMODITIES
[Index numbers]
United
Canada
England
Germany
Italy
France
States
(1926=100) (1926=100) (1913=100) (1913=100) (1913=100) (1913=100)
Year and month
1926
1927
1928._
1929
1930
1931
1932
Japan
(October
1900=100)
Netherlands
(1913=100)
100
95
97
95
86
73
65
1932—December.
148
142
140
137
120
104
102
695
642
645
627
554
502
427
134
138
140
137
125
111
97
602
495
462
445
383
328
304
237
225
226
220
181
153
161
145
148
149
142
117
97
79
63
....
100
98
96
96
87
72
67
64
101
413
92
296
185
76
1933—January...
February..
March
April
May
June
July
August
September.
October. _.
November.
December.
64
64
64
65
67
68
71
69
69
68
69
69
100
102
102
103
103
103
103
103
411
404
390
387
383
403
401
397
397
397
403
407
91
91
91
91
92
93
94
94
95
96
96
292
286
281
279
279
281
279
278
276
274
273
275
185
180
177
176
177
180
182
180
182
180
179
176
75
74
72
71
72
73
73
73
75
75
76
77
1934—January...
February..
March
April
May
71
72
72
71
71
105
105
104
103
102
405
400
394
387
381
276
275
275
273
273
176
178
177
177
176
79
80
79
79
77
WHOLESALE PRICES—GROUPS OF COMMODITIES
[Indexes for groups included in total index above]
United States (1926=100)
Year and month
1926
1927
1928
1929
1930
1931
1932
Farm
products
Foods
Other
commodities
England (1913=100)
Foods
France (1913=100)
Farm
Indus- AgriculIndustural
trial
and food
trial
products products products products
44
58
69
108
97
1933—Janu ary
February . .
March
April
May
June
July
August
.
43
41
43
45
50
53
60
58
57
56
57
56
56
54
55
56
59
61
66
65
65
64
64
63
67
66
66
65
67
69
72
74
76
77
77
78
107
105
102
101
102
104
101
104
105
104
104
103
97
96
95
95
98
101
103
102
102
102
102
103
_
59
61
61
60
60
64
67
67
66
07
78
79
79
79
79
104
104
101
99
100
105
106
105
105
104
1934—January
Februnry
March
April . - .
May _
.. .
._
Sources.—See BULLETIN for March 1931, p. 159.
114
87
87
87
87
88
89
90
90
89
89
89
89
113
112
112
111
112
112
113
113
114
114
114
114
93
92
91
91
92
73
73
73
74
90
91
91
91
90
114
115
115
115
115
387
386
378
372
360
1932—December..
September
October
November
December
87
81
80
79
77
77
78
77
76
75
73
73
73
424
416
413
404
405
581
599
584
579
526
542
482
.
80
81
82
83
82
84
85
87
88
90
93
94
94
373
370
368
369
376
390
389
389
383
379
384
385
144
136
134
132
116
100
97
_
84
375
455
443
417
407
390
418
414
407
413
417
425
432
155
152
152
145
127
112
111
._
150
147
159
157
150
136
118
456
100
94
93
92
85
75
70
Industrial raw Indusand semi- trial finished
finished
products products
130
132
134
132
120
103
89
129
138
134
130
113
104
91
100
97
101
100
91
75
61
Provisions
132
129
133
125
113
96
86
793
678
697
669
579
464
380
100
99
106
105
88
65
48
_
Germany (1913=100)
74
484
FEDERAL RESERVE BULLETIN
JULY 1934
PRICE MOVEMENTS IN PRINCIPAL COUNTRIES—Continued
RETAIL FOOD PRICES
COST OF LIVING
[Index numbers]
[Index numbers]
Year and month
Germany
(191314=100) 3
United
England
France
States
(July
(July
(1913=100)1 1914=100) 1914=100)
Year and month
1926
1927.
1928
1929
1930
1931
1932
161
155
154
157
147
121
102
161
156
157
154
145
131
126
113
113
112
124
125
124
109
144
152
152
155
143
128
112
1926..
1927...
1928...
1929...
1930...
1931...
1932...
1933—January
February
March.
April
May
June
July
_
August
September
October
November
December
95
91
91
90
94
97
105
107
107
107
107
104
123
122
119
115
114
114
118
119
122
123
126
126
102
103
101
99
97
97
95
97
98
101
103
104
107
107
106
106
110
111
111
110
111
112
113
114
1933—January
February...
March
April
May..
June
July
August
September..
October
November.
December..
1934—January
February
March
April
May
105
108
109
107
108
124
122
120
118
116
105
103
100
98
97
114
114
114
114
113
United
States
(1913=100)
1934—January __.
February. .
March
April
May
England
France
Germany
(Jan.-June
(July
(19131914=100) 1914=100)1 14=100) »
175
173
171
171
164
148
134
170
164
166
164
158
148
144
128
142
141
139
137
136
136
138
139
141
141
143
143
135
142
141
140
139
137
103
104
105
113
118
116
107
141
148
152
154
147
136
121
117
117
117
117
118
119
119
118
119
120
120
121
106
105
"I65"
"I67"
121
121
121
121
120
107
1
1
3
Since August 1933 the Bureau of Labor Statistics has published biweekly indexes. Figures given are for the date nearest 15th of month.
Index represents prices converted to gold basis of 1914.
Average of October 1913, January, April, and July 1914=100.
Sources.—For both retail food prices and cost of living: United States— Bureau of Labor Statistics, Department of Labor; England—Ministry
of Labour; Germany—Statistisches Reichsamt; France—For retail food prices, Statistique Generate, and for cost of living, Commission d'gtudes
relatives au cout de la vie a Paris.
SECURITY PRICES
[Index numbers except as otherwise specified]
Common stocks (1926 average = 100)
Bonds
United
States
(average
price)
Year and month
Number of issues
1926
1927
1928
1929
1930 .
1931
1932
_
1933—January
February
__ . .
March
April.
_ __
May
June
July
August _
September...
_.
October
November
December
_
_
.
United
States
England 1
France
Germany
421
278
300
85.5
81.4
83.3
2 83.4
2 67.1
100.0
107.0
115.9
119.5
102.6
78.9
67.9
100.0
123.2
178.1
217.6
187.6
132.2
105.2
100.0
145.0
136.1
122 8
100.2
2 78.0
2 50.3
86.4
85.3
81.9
81.5
78.5
79.5
80.0
80.2
81.4
81.1
79.6
79.9
81.4
79.9
83.6
85.8
81.5
80.1
78.2
7a 5
78.2
84.7
87.9
89.6
49.1
44.9
43.2
47.5
62.9
74.9
80.4
75.1
74.8
69.5
69.1
70.4
72.4
72.2
72.3
72.4
75.4
79.0
83.9
84.4
85.3
82.9
80.9
81.4
101.3
97.9
92.7
94.0
100.4
105.2
106.0
105.2
103.0
98.3
95.7
95.3
59.3
59.4
64.5
66 8
67.2
65.7
62.8
60.7
57 3
57.0
58 7
61.8
78.7
78.7
76.9
81.9
84.7
92.0
91.6
91.9
91.3
90.7
75.6
80.5
77.1
79.6
71.8
85.5
87.0
87.3
88.1
87.1
92.3
91.8
85 0
88.8
90.1
64.4
67.8
70 6
68.8
67.2
87
36
110.0
110.7
112.3
110.2
111.8
108.4
113.2
57.4
71.7
80.8
85.1
95.8
96.9
88.6
84.1
82.5
76.7
75.4
82.0
86.8
89.6
89.9
87.9
86.5
82.6
83.6
_
__
Germany
(average
price) 1
100.0
118.3
149.9
190.3
149.8
94.2
48.4
60
97.0
98.9
98.7
95.7
98.3
96.1
81.1
_
1934—January
February
March
April
May.
France
England
(December (1913 aver1921=100)1 age =100)
116.9
118.4
118.4
120.2
118.1
118.7
117.9
120.1
121.2
122.3
122.3
122.0
88.3
92.9
95.1
97.0
97.6
123.6
124.3
126.2
126.9
125.8
169
329
1
Annual indexes are unweighted averages of monthly indexes.
3 Exchange closed from July 13 to Sept. 2, 1931, and from Sept. 19,1931, to Apr. 11,1932. Index for 1931 represents average of months JanuaryJune; index for 1932 represents average of months May-December.
Sources.—See BULLETIN for February 1932, p. 121.
JULY
1934
FEDBEAL RESERVE BULLETIN
485
LAW DEPARTMENT
Discounts for individuals, partnerships, and corporations
In its circular of July 26, 1932, published in
the FEDERAL RESERVE BULLETIN for August
1932, on page 518, the Federal Reserve Board
granted authority to all Federal Reserve banks
to discount eligible notes, drafts, and bills of
exchange for individuals, partnerships, and
corporations, subject to the provisions of the
law, the Board's regulations, and that circular.
The authority, which was originally granted for
a period of 6 months beginning August 1, 1932,
has been extended from time to time and was in
January of this year extended until the close of
business on July 31, 1934. The Board has
decided to extend such authority for an additional 6 months, and, accordingly, has amended
section II of its circular of July 26, 1932 to read
as follows:
AUTHORIZATION BY THE FEDERAL RESERVE BOARD
The Federal Reserve Board, pursuant to the power
conferred upon it by the amendment hereinbefore
quoted, hereby authorizes all Federal Reserve banks, for
a period ending at the close of business on January 31,
1935, to discount eligible notes, drafts, and bills of
exchange for individuals, partnerships, and corporations, subject to the provisions of the law, the Board's
regulations, and this circular.
Permit to member banks relating to participation in
underwriting and dealing in municipal and other
securities
Section 32 of the Banking Act of 1933 prohibits correspondent relationships between member banks of the Federal Reserve System and
dealers in securities unless there is a permit
therefor issued by the Federal Reserve Board.
Such correspondent relationships include regular associations between member banks and
dealers in securities in connection with underwriting and dealing in securities, and section 32
does not contain any exception based upon the
kind of securities underwritten or dealt in.
However, paragraph 7 of section 5136 of the
Revised Statutes of the United States, as
amended by the Banking Act of 1933, specifically excepts certain municipal and other
obligations from the restrictions upon underwriting and dealing in securities by national
banks contained in such section 5136. These
restrictions and the exceptions thereto are also
made applicable to State member banks by the
provisions of section 9 of the Federal Reserve
Act as amended.
The Federal Reserve Board is authorized by
section 32 to issue permits for correspondent
relationships between member banks and
dealers whenever it finds that it is not incompatible with the public interest to do so, and
the Board has decided that it is not incompatible with the public interest to grant permits
authorizing correspondent relationships between member banks and dealers in securities
in connection with underwriting and dealing
in the securities exempted from the restrictions contained in section 5136 of the Revised
Statutes.
Heretofore the Federal Reserve Board has
followed the practice of issuing individual permits covering such correspondent relationships,
but in order to relieve member banks and
dealers from the burden of preparing and filing
formal applications in cases of the kind herein
described, the Board has granted a blanket
permit under section 32 for the period until
December 1, 1934, authorizing correspondent
relationships between any member bank or
banks and any dealer or dealers in securities in
connection with underwriting and dealing in
those securities excepted from the restrictions
contained in section 5136 of the Revised
Statutes, namely, obligations of the United
States, general obligations of any State or of
any political subdivision thereof, obligations
issued under authority of the Federal Farm
Loan Act, obligations issued by the Federal
home loan banks, 7
and/or obligations issued by
the Home Owners Loan Corporation. Each
member bank which exercises the privilege
granted by such permit shall furnish to the
Federal Reserve agent at the Federal Reserve
bank in the district in which the member bank
is located such information concerning its operations under this permit as the Federal Reserve
Board may require.
Securities company within provisions of sections 20
and 32 of Banking Act of 1933
The Banking Act of 1933 was enacted on
June 16, 1933, and section 20 of that act
became effective June 16, 1934, and reads in
part as follows:
SEC. 20. After one year from the date of the enactment of this Act, no member bank shall be affiliated in
any manner described in section 2 (b) hereof with any
corporation, association, business trust, or other
similar organization engaged principally in the issue,
486
FEDERAL RESERVE BULLETIN
flotation, underwriting, public sale, or distribution at
wholesale or retail or through syndicate participation
of stocks, bonds, debentures, notes, or other securities.
The Federal Reserve Board recently considered the question whether a trust company
which was affiliated with a member bank
within the meaning of the provisions of section
2 (b) of the Banking Act of 1933 and which was
engaged in the business of issuing and selling
mortgage bonds was a corporation carrying on
the kind of business described in section 20 of
the Banking Act of 1933". The business of the
company involved was as follows:
The trust company made loans secured by
first mortgages on improved real estate and the
obligations secured by such mortgages were
assigned to one of two corporate trustees, in
accordance with the terms of a trust agreement,
to secure the payment of bonds of the trust
company which were issued and sold to the
public by the trust company. It appeared that
these bonds were issued serially in denominations of $100, $500, or $1,000 each; that the
bonds bore interest payable semi-annually;
that at the time of the Board's consideration of
the matter the rate of interest on such bonds
then being issued w^as 4% percent; that the
bonds were negotiable in form; that the bonds
were the direct obligations of the trust company; that in addition to obligations secured by
mortgages certain securities of specified classes
might be deposited with the trustees to secure
the payment of such bonds; that it was the
practice of the trust company to authorize the
issue of such bonds in series of $1,000,000 or
less, although the whole amount of each series
might not in every case be sold; and that it was
the practice of the trust company to issue the
series of bonds with maturities of either 5 or 10
years. It also appeared that the trust company received deposits to some extent and did
a considerable amount of trust business. However, it appeared that the principal business of
the trust company was the making of mortgage
loans and the issuance and sale of its mortgage
bonds.
After careful consideration of this matter
the Board ruled, in view of all the facts involved, that the trust company was engaged
principally in the issue and sale of securities
within the meaning of section 20 of the Banking Act of 1933, and that, in view of the affiliation of the trust company with a member
bank, appropriate action should be taken to
JULY 1934
comply with the requirements of section 20
of the Banking Act of 1933.
Section 32 of the Banking Act of 1933 reads
in part as follows:
SEC. 32. From and after January 1, 1934, no officer
or director of any member bank shall be an officer,
director, or manager of any corporation, partnership,
or unincorporated association engaged primarily in
the business of purchasing, selling, or negotiating
securities, * * * unless in any such case there is
a permit therefor issued by the Federal Reserve Board;
and the Board is authorized to issue such permit if in
its judgment it is not incompatible with the public
interest, and to revoke any such permit whenever it
finds after reasonable notice and opportunity to be
heard, that the public interest requires such revocation.
In the case discussed above it also appeared
that directors of the trust company were also
directors of a member bank. In view of the
facts described above, the Board also ruled
that the trust company was engaged primarily
in the business of selling or negotiating securities within the meaning of section 32 of the
Banking Act of 1933.
Membership in Federal Reserve System of trust companies doing substantially no banking business
During the past several years the Board has
taken the position that it would not admit to
membership in the Federal Reserve System
trust companies which do substantially no
commercial banking business, but recently it
reviewed the question and decided that it
should give consideration to applications for
membership from trust companies of this type.
Accordingly, the Federal Reserve agent at
each of the Federal Reserve banks has been
requested to inform any trust company in his
district that may have been advised that it
would not be admitted to membership because
it was doing substantially no commercial
banking business that the Board will give consideration to its application for membership if
it desires to file one.
Act of June 16, 1934, extending for 1 year the temporary plan for deposit insurance, etc.
There is published below the text of an act
signed by the President on June 16, 1934,
which amends in several particulars section
12B of the Federal Reserve Act relating to
deposit insurance, amends the Reconstruction
Finance Corporation Act, and amends section
31 of the Banking Act of 1933. Important
I provisions of this act include the extension for
FEDERAL RESERVE BULLETIN
JULY 1934
1 year of the temporary plan for deposit insurance, the increase in the amount of insured
deposits of one depositor .in one bank from
$2,500 to $5,000, and authority for the Reconstruction Finance Corporation to purchase
debentures or other obligations of the Federal
Deposit Insurance Corporation in an amount
up to $250,000,000.
[PUBLIC—No. 362—73D CONGRESS]
[S. 3025]
AN ACT
To amend section 12B of the Federal Reserve Act so as to extend for
one year the temporary plan for deposit insurance, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 12B of the Federal Reserve Act
is amended—
(1) By striking out "July 1, 1934" wherever it
appears in subsections (e), (1), and (y), and inserting
in lieu thereof "July 1, 1935";
(2) By striking out "June 15, 1934" where it appears in the last sentence of the third paragraph of
subsection (y) and inserting in lieu thereof "October
1, 1934";
(3) By striking out "June 30, 1934" where it appears in the first sentence of the fifth paragraph of
subsection (v), and inserting in lieu thereof "June
30, 1935";
(4) By amending the second sentence of the fifth
paragraph of subsection (y) to comprise two sentences
reading as follows: "The provisions of such subsection (1) relating to State member banks shall be extended for the purposes of this subsection to members
of the Fund which are not members of the Federal
Reserve System, and the provisions of such subsection
(1) relating to the appointment of the Corporation as
receiver shall be applicable to all members of the
Fund. The provisions of this subsection shall apply
only to deposits of members of the Fund which have
been made available since March 10, 1933, for withdrawal in the usual course of the banking business.";
(5) By adding to the sixth paragraph of subsection
(y) the following: "The Corporation shall prescribe
by regulations the manner of exercise of the right of
nonmember banks to withdraw from membership in
the fund on July 1, 1934, except that no bank shall be
permitted to withdraw unless ten days prior thereto
it has given written notice to the Corporation of its
election so to do. Banks which withdraw from the
Fund on July 1, 1934, shall be entitled to a refund
of their proportionate share of any estimated balance
in the Fund on the same basis as if the Fund had
terminated on July 1, 1934.";
(6) By adding to the end of the fourth paragraph of
subsection (y) the following new paragraphs:
"On and after July 1, 1934, the amount eligible for
insurance under this subsection for the purposes of
the October 1, 1934 certified statement, any entrance
assessment, and, if levied, the additional assessment,
shall be the amounts not in excess of $5,000 of the
deposits of eacli depositor.
487
"Each mutual sayings bank, unless it becomes
subject to the provisions of the preceding paragraph
in the manner hereinafter provided, shall be excepted
from the operation of the preceding paragraph and
for each such bank which is so excepted the amount
eligible for insurance under this subsection for the
purposes of the October 1, 1934 certified statement,
any entrance assessment, and, if levied, the additional
assessment, shall be the amounts not in excess of
$2,500 for the deposits of each depositor. In the
event any mutual savings bank shall be closed on
account of inability to meet its deposit liabilities the
Corporation shall pay not more than $2,500 on account
of the net approved claim of any owner of deposits in
such bank: Provided, however, That should any mutual
savings bank make manifest to the Corporation its
election to be subject to the provisions of the preceding
paragraph the Corporation may, in the discretion of
the board of directors, permit such bank to become
so subject and the insurance of its deposits to continue
on the same basis and to the same extent as that of
fund members other than mutual savings banks.
"The Corporation, in the discretion of the board of
directors, may open on its books solely for the benefit
of mutual savings banks an additional Temporary Federal Deposit Insurance Fund (hereinafter referred to as
the 'Fund For Mutuals') which, if opened, shall become operative on or after July 1, 1934, but prior to
August 1, 1934, and shall continue to July 1, 1935. If
the Fund For Mutuals is opened on the books of the
Corporation, each mutual savings bank which is or
becomes entitled to the benefits of insurance during the
period of its operation shall be a member thereof and
shall not be a Fund member. All assessments on each
mutual savings bank, including payments heretofore
made to the Corporation less an equitable deduction
for liabilities and expenses of the Fund incurred prior
to the opening of the Fund For Mutuals, if opened, shall
be transferred or paid, as the case may be, to the Fund
For Mutuals. All provisions of this section applicable
to the Fund and not inconsistent with this paragraph
shall be applicable to the Fund For Mutuals if opened,
except that as to any period the two are in operation
the Fund shall not be subject to the liabilities of the
Fund For Mutuals and the Fund For Mutuals shall
not be subject to the liabilities of the Fund. Each
mutual savings bank admitted to the Fund shall bear
its equitable share of the liabilities of the Fund for the
period it is a member thereof, including expenses of
operation and allowing for anticipated recoveries.";
(7) By striking out the period at the end of the first
sentence of the fifth paragraph of subsection (y) and
inserting in lieu thereof a comma and the following:
"if the member closed on or before June 30, 1934, and
not more than $5,000 if closed on or after July 1,
1934.";
(8) By (a) striking out "July 1, 1936" in the first
sentence of subsection (1) and inserting in lieu thereof
"July 1, 1937", (b) striking out the words "July 1,
1936" in the seventh paragraph of subsection (y) and
inserting in lieu thereof "July 1, 1937", and (c)
adding after the seventh paragraph of subsection (y)
the following new paragraph:
"Until July 1, 1937, any State bank may obtain the
benefits of this section on and after the date the Fund
is terminated upon the conditions with regard to examination, certification, and approval governing the
admission of State banks to the Fund and upon purchasing such class A stock or making such a deposit
488
FEDERAL RESERVE BULLETIN
as is prescribed in the preceding paragraph for former
fund members.";
(9) By adding at the end of the first paragraph of
subsection (v) the following new paragraph:
" Every insured bank shall display at each place of
business maintained by it a sign or signs to the effect
that its deposits are insured by the Federal Deposit
Insurance Corporation. The Corporation shall prescribe by regulation the form of such sign and the
manner of its display. Such regulation may impose a
maximum penalty of $100 for each day an insured
bank continues to violate any lawful provisions of said
regulation."; and
(10) By amending the first sentence of the second
paragraph of subsection (y) by inserting within the
parentheses and immediately after the words "District
of Columbia" the words "and the Territories of Hawaii
and Alaska."
SEC. 2. The first paragraph of section 9 of the Federal
Reserve Act, as amended (U.S.C., title 12, sec. 321),
is amended by adding after the second sentence thereof
a new sentence to read as follows: "For the purposes
of membership of any such bank the terms * capital'
and * capital stock' shall include the amount of outstanding capital notes and debentures legally issued
by the applying bank and purchased by the Reconstruction Finance Corporation."
SEC. 3. (a) The Reconstruction Finance Corporation Act, as amended, is amended by adding before
section 6 thereof the following new section:
"SEC. 5e. (a) The Corporation is authorized and
empowered to make loans upon or purchase the assets
of any bank, savings bank, or trust company, which
has been closed on or after December 31, 1929, and
prior to January 1, 1934, and the affairs of which have
not been fully liquidated or wound up, upon such terms
and conditions as the Corporation may by regulations
prescribe. If in connection with the reorganization,
stabilization, or liquidation of any such bank, assets
have been trusteed or are otherwise held for the benefit
of depositors or depositors and others, the authority,
subject to regulations, as provided in the preceding
sentence shall be extended for the purpose of authorizing the Corporation to purchase or make loans on such
assets held for the benefit of such depositors or depositors and others. This authority shall also extend to
any such institution that has reopened without payment of deposits in full. In making any purchase of
or loan on the assets of any closed bank, the Corporation shall appraise such assets in anticipation of an
orderly liquidation over a period of years, rather than
on the basis of forced selling values in a period of business depression. This authority shall also extend to
assets of the character made eligible by this section
as security for loans without regard to whether the
Corporation has heretofore made loans thereon.
" (b) The Corporation shall purchase at par value
such debentures or other obligations of the Federal
Deposit Insurance Corporation as are authorized to be
issued under subsection (o) of section 12B of the Federal
Reserve Act, as amended, upon request of the board of
directors of the Federal Deposit Insurance Corporation,
whenever in the judgment of said board additional
funds are required for insurance purposes: Provided,
That the Corporation shall not purchase or hold at any
time said debentures or other obligations in excess of
$250,000,000 par value: Provided further, That the
proceeds derived from the purchase by the Corporation
of any such debentures or other such obligations shall
be used by the Federal Deposit Insurance Corporation
solely in carrying out its functions with respect to such
insurance.
JULY 1934
" (c) The amount of notes, bonds, debentures, and
other such obligations which the Corporation is authorized and empowered to issue and to have outstanding at any one time under existing law is hereby
increased by $250,000,000."
SEC. 4. So much of section 31 of the Banking Act of
1933 as relates to stock ownership by directors, trustees
or members of similar governing bodies of member
banks of the Federal Reserve System, is hereby repealed.
Approved, June 16, 1934.
Loans made by national banks secured by real estate
There is printed below the text of section
505 of the National Housing Act, approved by
the President June 27, 1934 (Public, No. 479,
73d Cong.), amending section 24 of the Federal
Reserve Act, which relates to loans made by
national banks secured by real estate.
SEC. 505. (a) Section 24 of the Federal Reserve
Act, as amended, is amended by adding at the end of
the tnird sentence thereof the following: "Provided,
That in the case of loans secured by real estate which
are insured under the provisions of title II of the National Housing Act, such restrictions as to the amount
of the loan in relation to the actual value of the real
estate and as to the five-year limit on the terms of
such loans shall not apply."
(b) Section 24 of such Act, as amended, is further
amended by adding at the end thereof the following
new paragraph:
" Loans made to finance the construction of residential or farm buildings and having maturities of
not to exceed six months, whether or not secured by a
mortgage or similar lien on the real estate upon which
the residential or farm building is being constructed,
shall not be considered as loans secured by real estate
within the meaning of this section, but shall be classed
as ordinary commercial loans: Provided, That no
national banking association shall invest in, or be
liable on, any such loans in an aggregate amount in
excess of 50 per centum of its actually paid-in and unimpaired capital. Notes representing such loans shall
be eligible for discount as commercial paper within the
terms of the second paragraph of section 13 of the
Federal Reserve Act, as amended, if accompanied by a
valid and binding agreement to advance the full amount
of the loan upon the completion of the" building entered
into by an individual, partnership, association, or
corporation acceptable to the discounting bank."
Regulation governing loans to provide working capital
There is printed herewith the Federal Reserve
Board's regulation pertaining to loans, discounts, purchases, and commitments by Federal Reserve banks to provide working capital
for established industrial or commercial businesses under the provisions of section 13b of
the Federal Reserve Act as amended by the Act
of June 19, 1934. After consultation with the
chairmen and governors of the 12 Federal Reserve banks, this regulation was adopted by the
JULY
1934
FEDERAL RESERVE BULLETIN
Federal Reserve Board on June 26, 1934, and
became effective immediately.
Recognizing the need of many small and
medium-sized industrial and commercial businesses for additional working capital to enable
them to continue or resume normal operations
and to maintain employment or provide additional employment, Congress has granted the
Federal Reserve banks very broad powers to
enable them to provide such working capital,
either through the medium of other banks, trust
companies, and other financing institutions or,
in exceptional circumstances, directly to such
commercial and industrial businesses. It is
believed that the facilities thus afforded will aid
in the recovery of business, the increase of employment, and the general betterment of conditions throughout the country.
In accordance with the policy of Congress
and in order to facilitate as much as possible
the performance of the new functions thus
granted to the Federal Reserve banks, the Federal Reserve Board's regulation leaves the broad
powers granted by Congress to the Federal
Reserve banks wholly unimpaired and prescribes no restrictions beyond those prescribed
in the law itself. Any attempt to prescribe
technical definitions of such terms as " working
capital", "established commercial or industrial
business", and "financing institutions" has
been avoided, lest it have the effect of restricting and hampering the operations of the Federal
Reserve banks under this statute. The regulations, therefore, contain practically nothing
except an analysis of the law and an outline of
the necessary procedure.
The law permits Federal Reserve banks to
make direct loans to established industrial and
commercial businesses only when authorized
by the Federal Reserve Board; but, in order to
avoid the necessity of having applications for
such accommodations passed on in Washington,
the Board has granted blanket authority to all
Federal Reserve banks to grant such accommodations directly on their own responsibility
without reference to Washington.
In accordance with one of the principles of
the Federal Reserve Act, which contemplates
that the operations of each Federal Reserve
bank will be adapted to the peculiar needs of
its own district and will be administered by
persons residing in and familiar with the problems of such district, the Federal Reserve
Board has not prescribed any uniform forms
to be used in making application to Federal
Reserve banks for working capital but has left
to each Federal Reserve bank the task of pre-
489
paring forms suitable to the needs of its district.
Each applicant, therefore, should communicate
directly with the Federal Reserve bank of its
district, which will supply the necessary forms
and all necessary information.
The Industrial Advisory Committees, which
are to be organized in each Federal Reserve
district and which will consist of five members
actively engaged in some industrial pursuit
within the district, are being selected, and the
names of their members will be announced
promptly by the Federal Reserve banks.
REGULATION S, SERIES OF 1934
DISCOUNTS, PURCHASES, LOANS, AND COMMITMENTS BY
FEDERAL RESERVE BANKS TO PROVIDE WORKING CAPITAL FOR ESTABLISHED INDUSTRIAL OR COMMERCIAL
BUSINESSES
SECTION I. STATUTORY PROVISIONS
Section 13b of the Federal Reserve Act as amended
by the act of June 19, 1934, reads in part as follows:
"SEC. 13b. (a) In exceptional circumstances, when
it appears to the satisfaction of a Federal Reserve bank
that an established industrial or commercial business
located in its district is unable to obtain requisite
financial assistance on a reasonable basis from the
usual sources, the Federal Reserve bank, pursuant to
authority granted by the Federal Reserve Board, may
make loans to, or purchase obligations of, such business,
or may make commitments with respect thereto, on a
reasonable and sound basis, for the purpose of providing
it with working capital, but no obligation shall be acquired or commitment made hereunder with a maturity exceeding five years.
"(b) Each Federal Reserve bank shall also have
power to discount for, or purchase from, any bank,
trust company, mortgage company, credit corporation
for industry, or other financing institution operating
in its district, obligations having maturities not exceeding five years, entered into for the purpose of
obtaining working capital for any such established
industrial or commercial business; to make loans or
advances direct to any such financing institution on
the security of such obligations; and to make commitments with regard to such discount or purchase of
obligations or with respect to such loans or advances
on the security thereof, including commitments made
in advance of the actual undertaking of such obligations. Each such financing institution shall obligate
itself to the satisfaction of the Federal Reserve bank
for at least 20 per centum of any loss which may be
sustained by such bank upon any of the obligations
acquired from such financing institution, the existence
and amount of any such loss to be determined in accordance with regulations of the Federal Reserve
Board: Provided, That in lieu of such obligation against
loss any such financing institution may advance at
least 20 per centum of such working capital for any
established industrial or commercial business without
obligating itself to the Federal Reserve bank against
loss on the amount advanced by the Federal Reserve
bank: Provided, however, That such advances by the
financing institution and the Federal Reserve bank shall
be considered as one advance, and repayment shall be
made pro rata under such regulations as the Federal
Reserve Board may prescribe.
490
FEDERAL RESERVE BULLETIN
, " (c) The aggregate amount of loans, advances, and
commitments of the Federal Reserve banks outstanding
under this section at any one time, plus the amount of
purchases and discounts under this section held at the
same time, shall not exceed the combined surplus of the
Federal Reserve banks as of July 1, 1934, plus all
amounts paid to the Federal Reserve banks by the
Secretary of the Treasury under subsection (e) of this
section, and all operations of the Federal Reserve banks
under this section shall be subject to such regulations
as the Federal Reserve Board may prescribe.
" (d) For the purpose of aiding the Federal Reserve
banks in carrying out the provisions of this section,
there is hereby established in each Federal Reserve
district an industrial advisory committee, to be appointed by the Federal Reserve bank subject to the
approval and regulations of the Federal Reserve Board,
and to be composed of not less than three nor more than
five members as determined by the Federal Reserve
Board. Each member of such committee shall be
actively engaged in some industrial pursuit within the
Federal Reserve district in which the committee is established, and each such member shall serve without
compensation but shall be entitled to receive from the
Federal Reserve bank of such district his necessary
expenses while engaged in the business of the committee, or a per diem allowance in lieu thereof to be
fixed by the Federal Reserve Board. Each application
for any such loan, advance, purchase, discount, or
commitment shall be submitted to the appropriate
committee and, after an examination by it of the business with respect to which the application is made, the
application shall be transmitted to the Federal Reserve
bank, together with the recommendation of the
committee."
SECTION
II. TRANSACTIONS BY FEDERAL RESERVE
BANKS WITH FINANCING INSTITUTIONS
(a) Legal requirements.—Under the provisions of
subsection (b) of section 13b of the Federal Reserve
Act, a Federal Reserve bank is authorized to discount
obligations for, purchase obligations from, and make
loans or advances on the security of such obligations
direct to, any bank, trust company, mortgage company,
credit corporation for industry or other financing institution (hereinafter referred to as " financing institution") operating in its district and to make commitments wTith regard to such discounts, purchases, loans
or advances, subject to the following requirements:
(1) Obligations which are the subject of such discounts, purchases, loans, advances, or commitments
must have been or must be entered into for the purpose
of obtaining working capital for an established industrial
or commercial business;
(2) Such obligations must have a maturity of not
exceeding five years;
(3) Each such financing institution shall—
A. Obligate itself to the satisfaction of the
Federal Reserve bank for at least 20 percent of any
loss which may be sustained by such reserve bank
upon any such obligation acquired from such financing institution, the existence and amount of
any such loss to be determined in accordance with
subsection (d) of section II of this regulation; or
B. In lieu thereof, advance at least 20 percent of
such working capital and in such event the advances by both such financing institution and the
Federal Reserve bank shall be considered as one
advance and repayment shall be made on a pro
rata basis.
JULY
1934
(6) Applications by financing institutions for discounts, purchases, loans, advances, or commitments
with respect thereto.—Each application * by a financing
institution to a Federal Reserve bank for the discount
or purchase of an obligation entered into for the purpose of obtaining working capital for an established
industrial or commercial business or for a loan or
advance on the security of such an obligation or for a
commitment with regard to such discount, purchase,
loan, or advance, must be transmitted to the Federal
Reserve bank of the district in which the principal
place of business of the applicant is located and shall
be submitted by such Federal Reserve bank to the
Industrial Advisory Committee of such district. Such
application must be made in writing on a form furnished
for that purpose by the Federal Reserve bank and must
contain or be accompanied by such information, agreements, and documents as the Federal Reserve bank
may require.
(c) Grant or refusal of application.—In making any
discount for or purchase from any financing institution
of obligations entered into for the purpose of obtaining
working capital for any established industrial or commercial business or making any loan or advance on the
security thereof or any commitment with regard to
such discount, purchase, loan or advance, the Federal
Reserve bank shall ascertain to its satisfaction:
(1) That such obligations have been or will be
entered into for the purpose of obtaining working
capital for an established industrial or commercial
business located in its district;
(2) That the financial condition and credit
standing of the obligor and indorsers, if any, upon
such obligations and of such financing institution:
and the value of the security offered, if any, justify
the granting of such accommodation; and
(3} That the transaction will comply with therequirements of the law and of this regulation with
regard thereto and, insofar as such reserve bank
may be able to ascertain, does not involve a
violation by any person of the provisions of section
22 of the Federal Reserve Act.
(d) Existence and amount of losses.—The Federal
Reserve bank shall be deemed to have sustained a loss
upon any obligation acquired from a financing institution in accordance with the provisions of this section of
this regulation whenever the board of directors of such
Reserve bank, after investigation, shall have determined that such obligation or any part thereof is a loss
and such reserve bank, after having obtained the approval of the Federal Reserve Board, shall have charged
off of the books of the reserve bank the amount so
determined to be a loss. The amount of loss in any
such case shall be deemed to be the amount so charged
off, together with unpaid interest thereon. Such
financing institution shall reimburse the Federal Reserve
bank for the portion of such loss for which such financing institution shall have obligated itself, with interest
on such portion of such loss until the date of such reimbursement. If any recovery be realized on the amount
of the loss ascertained in accordance with this subsection, such financing institution and the Federal Reserve
bank shall be entitled to share pro rata in the amount so
recovered.
1
Attention is invited to the requirements of subsections (h) and (k)
of section 22 of the Federal Reserve Act quoted in the appendix to this
regulation, with regard to material statements or overvaluation of
security in connection with applications of this kind and with regard to
the giving or receiving of fees, commissions, bonuses, or things of value
for procuring or endeavoring to procure from a Federal Reserve bank any
credit accommodation, either directly from such Federal Reserve bank:
or indirectly through anyfinancinginstitution.
JULY
1934
FEDERAL RESERVE BULLETIN
SECTION III. DIRECT TRANSACTIONS IN EXCEPTIONAL
CIRCUMSTANCES BY FEDERAL RESERVE BANKS WITH
ESTABLISHED INDUSTRIAL OR COMMERCIAL BUSINESSES
(a) Legal requirements.—A Federal Reserve bank
may exercise its authority to make loans to or purchase
obligations of an established industrial or commercial
business located in its district or to make commitments
with respect thereto under subsection (a) of section
13b of the Federal Reserve Act: (1) in exceptional
circumstances; (2) when it appears to the satisfaction of
the Federal Reserve bank that such established industrial or commercial business is unable to obtain requisite
financial assistance on a reasonable basis from the usual
sources; (3) pursuant to the authority hereinafter
granted by the Federal Reserve Board; (4) for the purpose of providing such established industrial or commercial business with working capital; (5) on a reasonable and sound basis; and (6) with respect to obligations
which have maturities not exceeding 5 years.
(b) Authorization by Federal Reserve Board.—The
Federal Reserve Board, pursuant to the provisions of
subsection (a) of section 13b of the Federal Reserve
Act, hereby authorizes every Federal Reserve bank, in
exceptional circumstances, until such time as the
Federal Reserve Board may revoke or modify such
authority, to make loans to and purchase obligations
of an established industrial or commercial business in
its district, and to make commitments with respect
thereto, subject to the provisions of the law and this
regulation.
(c) Applications by established industrial or commercial businesses for loans, purchases, or commitments with respect thereto.—Each application 2 by
an established industrial or commercial business to a
Federal Reserve bank for a loan to, or the purchase of
the obligations of, such business, or a commitment with
respect to such a loan or purchase, must be transmitted
to the Federal Reserve bank of the district in which
the principal place of business of the applicant is located
and shall be submitted by such Federal Reserve bank
to the Industrial Advisory Committee of such district.
Such application must be made in writing on a form
furnished for that purpose by the Federal Reserve
bank and must contain or be accompanied by such
information, agreements, and documents as the Federal
Reserve bank may require.
(d) Grant or refusal of application.—In making any
loan to or purchasing the obligations of any established
industrial or commercial business or making any commitment with respect to such a loan or purchase, the
Federal Reserve bank shall ascertain to its satisfaction:
(1) That the circumstances are exceptional;
(2) That the obligor upon the obligation to be
purchased or to evidence such loan is an established
industrial or commercial business located in its
district;
(3) That the proceeds of such loan or purchase
are to be used to provide working capital for such
business;
(4) That such obligor is unable to obtain requisite financial assistance on a reasonable basis from
the usual sources;
2
Attention is invited to the requirements of subsections (h) and (k)
of section 22 of the Federal Reserve Act quoted in the appendix to this
regulation, with regard to material statements or overvaluation of security in connection with applications of this kind and with regard to the
giving or receiving of fees, commissions, bonuses, or things of value for
procuring or endeavoring to procure from a Federal Reserve bank any
credit accommodation, either directly from such Federal Reserve bank or
ndirectly through any financing institution.
491
(5) That the financial condition and credit
standing of the obligor and indorsers, if any, upon
such obligations, and the value of the security
offered, if any, justify the granting of such accommodation on a reasonable and sound basis; and
(6) That the transaction will comply with the
requirements of the law and of this regulation with
regard thereto and, insofar as such reserve bank
may be able to ascertain, does not involve a violation by any person of the provisions of section 22
of the Federal Reserve Act.
SECTION IV. INDUSTRIAL ADVISORY COMMITTEES
(a) Membership of committees.—The Industrial
Advisory Committee established in each Federal
Reserve district under the provisions of subsection (d)
of section 13b of the Federal Reserve Act shall consist
of five members actively engaged in some industrial
pursuit within the Federal Reserve district in which
the committee is established, and it shall be the duty
of such committee to consider all applications made to
the Federal Reserve bank for discounts, purchases,
loans, advances, and commitments pursuant to the
provisions of section 13b of the Federal Reserve Act
and to make recommendations to the Federal Reserve
bank with respect thereto. The membership of such
committee shall consist of persons who are familiar
with the problems and needs of industry and commerce in such district.
As soon as practicable, the board of directors of each
Federal Reserve bank shall submit for the approval of
the Federal Reserve Board the names of the persons in
the district of such Federal Reserve bank selected by
such board of directors for service on such committee
and, if approved by the Federal Reserve Board, such
persons shall serve as members of said committee until
March 1, 1935.
On or before February 15, 1935, and on or before the
15th day of February of each year thereafter, the board
of directors of each Federal Reserve bank shall submit
to the Federal Reserve Board for its consideration the
names of the persons selected to serve for the ensuing
year as members of the Industrial Advisory Committee
of the district of such Federal Reserve bank and, if
approved by the Federal Reserve Board, such persons
shall serve for terms of 1 year commencing on the
1st day of March of such year. Vacancies that may
occur in the membership of such committees shall be
filled in like manner, and persons appointed to fill such
vacancies shall hold office for the unexpired terms of
their predecessors.
(b) Recommendations of committees.—The Industrial Advisory Committee, to which an application for
any such discount, purchase, loan, advance, or commitment by the Federal Reserve bank of the district
shall have been submitted, after an examination by it
of the business with respect to which the application
is made and a consideration of the necessity and
advisability of granting the application and of such
other factors as it may deem appropriate, shall transmit the application to the Federal Reserve bank
together with the recommendation of the committee.
SECTION V. AGGREGATE AMOUNT OF ACCOMMODATIONS
WHICH MAY BE EXTENDED BY A FEDERAL RESERVE
BANK
Except with the permission of the Federal Reserve
Board, the aggregate amount of loans, advances, and
commitments of each Federal Reserve bank made
492
FEDERAL RESERVE BULLETIN
pursuant to the provisions of section 13b of the Federal
Reserve Act and outstanding, plus the amount of purchases and discounts acquired under that section and
held at the same time, shall not exceed the surplus of
such Federal Reserve bank as of July 1, 1934, plus all
amounts paid to such Federal Reserve bank by the
Secretary of the Treasury under subsection (e) of
section 13b of the Federal Reserve Act.
SECTION VI. RATES OF INTEREST AND DISCOUNT
All rates of interest and of discount established by
any Federal Reserve bank with respect to loans,
advances, discounts, and purchases made under authority of the provisions of section 13b of the Federal Reserve Act shall be subject to the approval of the Federal
Reserve Board.
SECTION VII. REPORTS BY FEDERAL
RESERVE
BANKS
Each Federal Reserve bank shall make a daily report
to the Federal Reserve Board of all transactions entered
into pursuant to the authority conferred by section 13b
of the Federal Reserve Act on the Federal Reserve
Board's form B D 4, prescribed for the reporting of
discount transactions.
SECTION VIII. CHANGES IN REGULATIONS
The Federal Reserve Board, pursuant to the authority conferred upon it by section 13b of the Federal
Reserve Act, will alter, modify, or amend the provisions
of this regulation from time to time in its discretion.
APPENDIX
There is printed below the text of subsections (h),
(i), (j), and (k) of section 22 of the Federal Reserve
Act, as amended by the act of June 19, 1934, which
relate in part to the subject matter of this regulation.
" (h) Whoever makes any material statement, knowing it to be false, or whoever willfully overvalues any
security, for the purpose of influencing in any way
the action of a Federal Reserve bank upon any application, commitment, advance, discount, purchase, or loan,
or any extension thereof by renewal, deferment of action, or otherwise, or the acceptance, release, or substitution of security therefor, shall be punished by a fine
July 1934
of not more than $5,000 or by imprisonment for not
more than two years, or both.
" (i) Whoever, being connected in any capacity with
a Federal Reserve bank (1) embezzles, abstracts, purloins, or willfully misapplies any moneys, funds, securities, or other things of value, whether belonging
to it or pledged or otherwise entrusted to it, or (2)
with intent to defraud any Federal Reserve bank,
or any other body politic or corporate, or any individual, or to deceive any officer, auditor, or examiner,
makes any false entry in any book, report, or statement of or to a Federal Reserve bank, or, without
being duly authorized, draws any order or issues,
puts forth, or assigns any note, debenture, bond, or
other obligation, or draft, mortgage, judgment, or
decree shall be punished by a fine of not more than
$10,000 or by imprisonment for not more than five
years, or both.
"(j) The provisions of sections 112, 113, 114, 115,
116, and 117 of the Criminal Code of the United States,
insofar as applicable, are extended to apply to contracts or agreements of any Federal Reserve bank under
this Act, which, for the purposes hereof, shall be held to
include advances, loans, discounts, purchase and repurchase agreements; extensions and renewals thereof;
and acceptances, releases, and substitutions of security therefor.
" (k) It shall be unlawful for any person to stipulate for or give or receive, or consent or agree to
give or receive, any fee, commission, bonus, or thing
of value for procuring or endeavoring to procure from
any Federal Reserve bank any advance, loan, or extension of credit or discount or purchase of any obligation
or commitment with respect thereto, either directly
from such Federal Reserve bank or indirectly through
any financing institution unless such fee, commission,
bonus, or thing of value and all material facts with
respect to the arrangement or understanding therefor
shall be disclosed in writing in the application or
request for such advance, loan, extension of credit,
discount, purchase, or commitment. Any violation of
the provisions of this paragraph shall be punishable by
imprisonment for not more than one year or by a fine of
not exceeding $5,000, or both. If a director, officer,
employee, or agent of any Federal Reserve bank shall
knowingly violate this paragraph, he shall be held liable
in his personal and individual capacity for any loss
or damage sustained by such Federal Reserve bank in
consequence of such violation.
493
FEDERAL RESERVE BULLETIN
J u l y 1934
FEDERAL RESERVE STATISTICS BY DISTRICTS, ETC.
DISCOUNTS BY WEEKS
DISCOUNTS BY MONTHS
[In thousands of dollars]
[Averages of daily figures. In millions of dollars]
1933
1934
Federal Reserve bank
June
May
June 6
11.7
61.9
39.6
39.1
15.8
11.0
15.1
2.9
6.1
10.9
4.6
31.3
35.9
28.1
Total..
June
1.0
16.4
11.6
1.7
1.2
.7
1.1
.2
.5
.2
.3
0.9
13.9
7.8
Boston
New York
PhiladelphiaCleveland
Richmond
Atlanta
Chicago—
St. Louis
Minneapolis...
Kansas C i t y . . .
Dallas
San Franciseo.
Wednesday series (1934)
Federal Reserve bank
249.9
Boston
New York
Philadelphia.
828
13,016
8,609
Chicago.-.
St. Louis
Minneapolis...
Kansas City...
Dallas
__.
San Francisco..
Total
280
115
677
214
580
773
14, 441
6.866
1,395
879
531
691
178
546
479
481
563
28,997 I 27,876
Cleveland
Richmond. . .
Atlanta
Backfigures.—SeeAnnual Report for 1932 (table 9).
June 13 June 20
734
13,423
8,810
1,386
959
586
1,116
98
639
27,956
1,373
892
519
213
456
577
June 27
1,271
14,422
6,641
642
871
577
730
141
485
272
477
27,015
Backfigures.—SeeAnnual Report for 1932 (table 13).
TOTAL RESERVES, DEPOSITS, NOTE CIRCULATION, AND RATIO OF TOTAL RESERVES TO
LIABILITIES
[Averages of daily figures. Amounts in thousands of dollars]
Federal Reserve notes in
circulation l
Total deposits
Total reserves
Federal Reserve bank
1933
1934
June
Boston.
New York
Philadelphia.
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas C i t y . . .
Dallas
San Francisco.
Total..
May
June
1933
1934
June
May
June
403,315
307,163
299, 614 173,824
318,924
410,707
1,665,903 1, 591,083 1, 031, 586 1, 703, 024 1,641,840 1,031, 435
309, 533 235, 236 223,936
215, 349 133, 294
321,781
160,054
257, 552 244,453
365, 738 288,844
378,105
90,984
172, 529
149,021
191, 201
215, 595 174,105
66,541
84, 769
138, 338 134,767
137, 848
86,315
679,119
620, 832 354, 365
927,044
1,047,988
82,147
130,930
143,816
177,013
191,476
162,650
109,736
51, 398
112,177
78,919
75, 503
86,858
91,016
139,118
139,848
161,812
143,756
156,991
54, 661
49,813
119,113
117,612
98, 410
97,131
304, 254 299, 264 261, 650 252, 336 250, 673 166,869
1934
1933
May
June
June
244,027
645, 704
249,090
244,309
637, 482
247,702
222, 368
664, 385
241,869
305, 781
142,161
135, 405
305,357
141,756
132,151
776, 935
134,403
95, 772
106,800
39,081
199,612
312,667
143,313
124,032
807,224
142, 577
90, 447
Ratio of total reserves to
deposit and Federal
Reserve note liabilities combined
1934
June
112,376
35,846
230,542
74.5
70.9
68.0
67.1
65.7
62.4
72.2
67.1
64.5
64.4
61.8
66.9
5,007,689 4,864,715 3,813,676 4,131,184 4,006,838 2,456,588 3,072,017 3,061,360 3,127,646
1933
May
74.1
69.8
66.8
66.5
68.6
62.1
.9.5
771,689
132,772
95,089
107,509
40,154
202, 636
70.8
68.8
64.1
63.6
62.0
66.5
June
80.5
60.8
62.7
61.1
74.3
72.3
79.8
72.4
61.2
68.4
55.0
65.8
68.3
1
Includes "Federal Reserve notes of other Reserve b a n k s " as follows: Latest month, $18,032,000; month ago, $17,248,000; year ago, $18,655,000.
Back figures.—See Annual Report for 1932 (table 8).
EACH FEDERAL RESERVE BANK—ASSETS AND LIABILITIES; ALSO FEDERAL RESERVE NOTE
AND FEDERAL RESERVE BANK NOTE STATEMENT, JUNE 30, 1934
[In thousands of dollars]
Total
Boston
New
York
Phila- Clevedelphia land
Richmond Atlanta Chicago
St.
Minne- Kansas Dallas
Louis apolis
City
San
Francisco
ASSETS
Gold certificates on hand and
due from U.S. T r e a s u r y . __ 4,782,053 394,962 1,669,495 287,465 349, 276 163, 235 123,620
Redemption
fund—F.R.
notes
2,111
1,707
2,606
3,081
3,479
25,724
2,318
55, 309 34, 588 11,888
7,027 11, 709
214,011
16,636
Other cash
991,646 152, 530
88, 765
302,004
1,006
10,041
554
5,495
4,543
10,947
Total reserves
5,021, 788 413, 709 1, 726, 511 324, 659 364, 245 172, 580 138,808 1,022,157 163,348 111,433 172,030
Redemption
fund—F.R.
4,335
2,038
858
715
bank notes
250
Bills discounted:
Secured by U.S. Govern1
988
183
9
159
ment obligations
4,767
401
2,777
98
25
15
5,278
549
283
12
19,800
11,006
558
374
Other bills discounted...
336
177
472
94, 814
317,494
Total bills discounted.
Bills bought in open market.
24, 567
5,269
737
371
13, 783
2,005
6,266
536
732
487
656
193
481
178
2,183
28, 328
284
649
968
9,850
171
121
98,072 160,983
1,168
12,193
399
85
192
142
474
31
396
80
359
427
142
439
360
494
FEDERAL RESERVE BULLETIN
July 1934
EACH FEDERAL RESERVE BANK—ASSETS AND LIABILITIES; ALSO FEDERAL RESERVE NOTE
AND FEDERAL RESERVE BANK NOTE STATEMENT, JUNE 30, 1934—Continued
New
York
Phila- Cleve- Richdelphia land mond Atlanta Chicago
San
St. Minne- Kansas
Louis apolis City Dallas Francisco
Total
Boston
U.S. Government securities:
Bonds
Treasury notes
Certificates and bills
467,918
1,221,871
742,105
27, 225
80,648
49,806
166,173
387, 463
226, 619
30,022 35, 998
85,149 109,439
51,949 67, 587
17, 501
53, 204
32,858
15,195
45,830
28, 305
76, 501
218,557
135, 785
16,166
47, 623
29,411
17, 371
29, 836
18,423
17, 272
47,089
29,083
20,387
31, 582
19, 506
28,107
85,451
52, 773
Total U.S. Government securities
Other securities
2, 431, 894
519
57, 679
780, 255
35
67,120 213, 024 103,563
484
89, 330
430,843
93, 200
65,630
93, 444
71, 475
166,331
2,462, 249
3,129
19,202
425,176
52, 637
58, 787
236
417
45, 752
3,224
796,078
1,195
5,958
111, 595
11,449
74,406 214, 243 104, 412
300
119
341
1,183
1,455
915
29, 519 37,159 35, 721
3,128
4,170
6,788
89,989
109
940
13, 522
2,372
431, 776
414
3,642
62,919
7,387
93, 492
10
1,372
17, 308
3,124
66,114
7
859
12, 281
1,664
93, 778
88
935
26, 569
3,485
72,044
88
346
14,671
1,757
167,130
222
1,180
18,160
4,089
139, 299
46,825
10, 230
802
42, 529
30, 085
5,272
2,433
19,749
1,177
5,093
269
3,510
1,107
4,131
523
4,359
969
9,850
601
96,975 301, 539 189, 522
518.726
40, 645
207, 318
ASSETS—continued
Total bills and securities
Due from foreign banks
F.R. notes of other banks
Uncollected items
. ..
Bank premises
Fed. Deposit Ins. Corp.
stock
_
All other assets
Total assets
,174,640
14,621
5,607
5,808
1,843
633,407 2,727, 438 555,096 640.189 325,066 253. 445 1, 549, 221 284, 016
i
LIABILITIES
F.R. notes in actual circula3,101, 314
tion..
F.R. bank note circula46, 682
tion—net
Deposits:
Member bank—reserve
3,840,086
account.-. _.
U.S. Treasurer—general
64,183
account .
4,893
Foreign bank_
228, 527
Other deposits
4,137,689
Total deposits...
Deferred availability items. _ 418,486
147,120
Capital paid in
138,383
Surplus
Reserves (Federal Deposit
Ins. Corp. stock, self insur161, 834
ance, etc.)
23,132
All other liabilities
8,174, 640
Total liabilities
Ratio of total reserves to
deposit and F.R. note
liabilities combined (per69.4
cent)
14,147
1, 409
245, 055
666
664, 098 251,229 1307.927 141, 547 135, 627
35, 650
4,733
771,306
32,668
95, 235 108, 659
4,347
1,286
70, 574 141, 343 114,064
230, 793
4,822
105
8,156
1,151
105
1,474
9,669
266
20, 450
78, 537 154, 426 116, 794
11,921 25,716 15, 867
4,148
3,992
3,049
3,613
3,683
3, 420
261, 478
17,939
10,782
9,645
7,853
22, 718
5,489
6,963
4,535
4,748
5, 946
11, 283
47, 266 17,121 16, 447
432
641
2,668
305
229
1,766
295
15, 817
28
278
574
633,407 2,727,438 555, 096 640,189 325,066 253,445 1,549,221 284,016 196, 975 301,539 189, 522
11, 465
99
24,134
73, 964
639, 729
03,805
3,381
142
4,225
3,339
131
9,551
5,119
472
10, 605
1,325
123
13, 607
310, 210 1, 750, 815 224,491 247, 286 131,882
45, 240
108,306 28,129 36, 955 34, 515
10, 769
60,269 15,400 12, 705
4,960
9,610
45, 217 13,352 14, 090
5,171
86,985
13,126
4,404
5,145
655,925
63,310
12, 613
20, 681
18, 860
17, 462
4,029
4,756
306, 694 1,587,195 213, 836 233,955
673
270
2,573
74.5
22, 752
2,445
138, 423
71.5
5,334
389
4,932
64.2
5,480
359
7,492
65.6
63.1
62.4
71.6
64.9
838
86
7,039
64.1
65.4
•
518, 726
60.2
67.7
45, 938
245,831
FEDERAL RESERVE NOTE
STATEMENT
Federal Reserve notes:
Issued to F.R. bank by
3,350,986
F.R. agent
Held by Federal Reserve
249, 672
bank
In actual circulation. 3,101,314
Collateral held by agent as
security for notes issued to
bank:
Gold certificates on hand
and due from U.S.
3,041, 656
Treasury
13, 407
Eligible paper .
U.S. Government securi322,000
ties
3, 377, 063
Total collateral
269, 533
745,101 266,089 321, 400 148,474 154,993
24, 478
14, 860 13,473
6,927 19, 366
81,003
664,098 251, 229 307, 927 141, 547 135, 627
245, 055
271,117
647
743,706 230, 000 264, 931 114,340
732
2,079
8,016
428
271, 764
35, 000 60, 000 35,000 60,000
751, 722 267, 079 325, 663 149, 768 156, 725
96,385
340
802,363 136,845
31, 057
99,842 114,577
4,177
771, 306 132,668
5,918
5,293
38, 513
95, 235 108,659
40, 645
207,318
784, 513 112,936
115
167
78,000
105
97, 290
91
46,675
427
201, 763
260
20, 000 25,000 22, 000 20, 000
804, 628 138,103 100,105 117,381
47,102
247,023
4,607
45,000
F.R. BANK NOTE STATEMENT
F.R. bank notes:
Issued to F.R. bank
(outstanding)
Held by F.R. bank
In circulation—net
Collateral pledged against
outstanding notes:
Discounted and purchased bills
U.S. Government securities
Total collateral
61,058
14, 376
1,511
845
36, 682
1,032
16,035
11, 302
4,705
358
2,125
839
46, 682
666
35,650
4,733
4,347
1 286
5,000
66,474 1 5,000
36,974
36,974
16,500
16,500
5,000
5,000
3 000
66,474
|
3,000
495
FEDERAL RESERVE BULLETIN
July 1934
FEDERAL RESERVE BANK CREDIT
RESERVE BANK CREDIT AND RELATED ITEMS (AVERAGES OF DAILY FIGURES)
[In millions of dollars]
Reserve bank credit outstanding
Month or week
United
States
Bills
Bills
dis- bought Governcounted
ment
securities
Other
reserve
bank
credit
Total
Treasury
and na- Money
Monetary gold tionalin cirstock
bank
culation
currency
Member
bank
reserve
balances
2,125
2,211
2,268
2,375
2,489
1,846
1,933
2,016
2,064
2,202
2,355
2,437
2,432
2,286
2,208
2,211
2,239
2,358
2,492
2,574
2,669
4,313
4,317
4,319
4,323
4,327
4,324
4,323
4,323
2,301
2,295
2,283
2,280
2,280
2,277
2,275
2,293
5,876
5,742
5,675
5,616
5,632
5,656
5,681
5,811
2,432
2,432
2,437
2,439
2,431
2,424
2,656
2,597
2,535
2,507
2,479
2,464
4,323
7,137
7,602
7,736
7,759
7,821
2,302
2,303
2,333
2,377
2,378
2,363
Week ending Saturday1934—Mar. 3
Mar. 10
Mar. 17
Mar. 24
Mar. 31_
2,433
2,437
2,432
2,438
2,444
2,565
2,549
2,530
2,518
2,534
7,417
7,546
7,600
7,642
7,677
Apr. 7__.
Apr. 14..
Apr. 21..
Apr. 28..
2,446
2,439
2,436
2,435
2,525
2,504
2,506
2,498
May
May
May
May
2,432
2,431
2,430
2,430
2,430
2,416
2,416
2,431
2,430
1933—May
June
July
August
September,.
October
NovemberDecember..
250
170
159
138
119
114
117
12
16
8
7
7
15
101
1934—January...
February..
March
April
May.
June
101
70
55
43
36
28
113
87
40
16
5...
12..
19..
26..
June2__.
June 9-..
June 16..
June 23..
June 30..
r
Treasury
cash and
deposits
with
Federal
Reserve
banks
Other
Federal
Nonmember Reserve
acdeposits
counts
2,629
2,616
371
353
347
316
328
333
349
357
173
164
179
186
169
163
158
143
355
350
346
348
347
352
355
358
5,669
5,339
5,368
5,366
5,355
5,341
2,764
2,822
3,361
3,594
3,695
3,790
397
3,427
3,298
3,222
3, 083
3,054
146
127
144
170
249
226
305
322
299
268
234
237
2,302
2,312
2,331
2,343
2,358
5,370
5,386
5,364
5,351
5,358
3,047
3,277
3,419
3,419
3,433
3,444
3,315
3,237
3,285
3,319
131
134
141
147
159
292
295
300
301
300
7,706
7,731
7,746
7,755
2,369
2,378
2,380
2,380
5,387
5,370
5,364
5,346
3,473
3,557
3,634
3,698
3,299
3,239
3,219
3,158
145
147
169
193
296
300
246
238
2,487
2,483
2,479
2,474
7,756
7,775
7,753
7,764
2,381
2,381
2,380
2,370
5,372
5,369
5,357
' 5, 335
3,591
3,655
3,713
3,756
3,152
3,099
3,059
3,054
272
259
249
237
237
234
234
••232
2,470
2,459
2,459
2,470
2,468
7,777
7,790
7,819
7,836
7, 848
2,370
2,364
2,361
2,361
2,365
5,350
5,360
5,337
5,328
5,330
3,745
3,780
3,825
3,754
3,825
3,064
3,011
3,008
3,124
3,064
226
227
230
223
226
232
235
239
238
236
Revised.
RESERVE BANK CREDIT AND RELATED ITEMS (END OF MONTH SERIES)
[In millions of dollars]
Reserve bank credit outstanding
End of month
2,298
2,285
2,281
2,281
2,278
2,276
2,277
2,303
5,812
5,721
5,630
5,613
5,650
5,635
5,743
5,804
2,167
2,292
2,294
2,409
2,538
2,685
2,573
2,729
345
298
356
341
331
299
369
288
155
166
184
197
155
173
142
132
353
347
346
347
348
356
354
2,302
2,302
2,362
2,378
2,368
2,367
5,289
5,355
5,396
5,368
5,357
5,374
2,652
3,093
3,457
3,599
3,746
3,840
597
3,440
3,293
3,148
3,053
3,015
141
127
157
268
222
287
292
200
236
232
233
10
6
8
9
5
7
20
2,218
2,220
2,209
2,297
2,421
2,548
2,581
2,688
4,315
4,318
4,320
4,329
4,324
4,323
4,323
4,323
2
8
15
6
-4
10
2,630
2,567
2,545
2,485
2,463
2,472
4,033
7,438
7,695
7,757
7,779
7,856
1933—May
June
July
August
September.
October _._
November.
December.
302
164
167
153
128
116
119
98
24
133
1,890
1,998
2,028
2,129
2,277
2,421
2,432
2,437
1934—January...
FebruaryMarch
April
May
June
83
64
54
39
31
25
111
62
29
9
5
5
2,434
2,432
2,447
2,431
2,430
2,432
20
48
9
7
7
7
See footnotes to table for Wednesday series on p. 419.
Member
Other
reserve
bank
credit
7
Total
Treasury
cash and
deposits
with
Federal
Reserve
banks
Treasury Money
and
Monetary gold national- circulastock
bank
tion
currency
United
Bills
States
disBills Governcount- bought
ment
securied
ties
reserve
balances
Other
Federal
Nonmember Reserve
acdeposits
counts
233
496
FEDERAL RESERVE BULLETIN
July 1934
LICENSED MEMBER BANKS IN EACH DISTRICT
RESERVES HELD, EXCESS RESERVES, AND BORROWINGS AT FEDERAL RESERVE BANKS
[In millions of dollars. Averages of daily figures]
Reserves held
Federal Reserve district
Total
Borrowings at Federal
Reserve banks
Excess
May
291.5
1,483.3
195.8
Chicago
St. Louis .
Minneapolis
-
-
Kansas Citv
.Dallas
San Francisco
-
-
-
.
-
. . .
-
. .-
_
Total
221.4
1,367. 2
193.7
170.7
536.0
79.6
139.2
508.2
75.9
107.2
467.0
80.7
1 0
15.8
4.3
1.5
17.4
5.6
1 9
22.9
8.4
225.7
147.9
75.9
230.3
97.5
75.8
98.9
96.3
25.4
99.0
88.0
28.2
107.8
38.9
29.5
1.4
.8
.6
2.1
1.2
.6
2.8
1 4
.5
577.3
119.0
68.1
537.6
103.5
68.3
319.8
65.8
26.4
315.2
60.2
29.0
285.1
47.1
30.0
.3
.2
.5
.3
.6
.9
.4
.9
134.1
113.6
228. 8
133.6
114.6
220. 3
134.4
119.6
195.5
62,4
64.0
77.9
63.5
64.4
70.3
64.9
68.4
48.4
.2
.3
.4
.3
.2
.3
.3
.1
3,694.8
Cleveland
Richmond
Atlanta
257.6
1,451.3
190.8
596.6
124.0
65.6
_
March
229.4
159.3
72.9
Boston
New York
Philadelphia
April
3, 582. 2
3,344. 7
1, 623. 5
1, 541. 0
1, 375.1
25.9
30.6
41.2
May
March
April
May
April
March
.8
NET DEMAND AND TIME DEPOSITS OF LICENSED MEMBER BANKS IN LARGER AND SMALLER
CENTERS
[In millions of dollars. Averages of daily figures]
Member banks in larger centers (places over 15,000)
May
Boston
New York
Philadelphia.
April
Net demand
Time
Net demand
Federal Reserve district
Member banks in smaller centers (places under 15,000)
March
May
April
March
May
April
Time
March
May
April
March
1,057
6,989
829
Chicago
St. Louis..
Minneapolis.
Kansas City—
Dallas San Francisco
.
-
Total
..
623
1,698
624
613
1,674
609
83
196
140
78
191
139
77
186
138
119
428
367
115
426
363
117
423
358
911
437
363
873
424
346
887
313
265
874
308
265
862
307
262
131
98
80
130
95
81
127
94
83
208
150
63
203
148
62
199
146
63
2,045
430
229
.-
618
1,689
630
1,935
437
230
1,851
414
222
853
247
168
834
251
168
826
240
171
154
105
112
146
103
110
141
102
108
149
85
170
146
84
170
143
83
171
499
356
962
.
990
6,628
806
943
468
361
Cleveland
Richmond
Atlanta
1,034
6.955
819
484
360
966
478
365
943
209
159
1,640
206
158
1,601
202
158
1,584
204
160
89
200
164
88
201
170
85
109
34
83
108
35
83
107
35
82
14,340
7,678
7,609
7,510
1,552
1,526
1,511
1,965
1,943
1,927
15,168
14,931
NONMEMBER BANKS OTHER THAN MUTUAL SAVINGS BANKS, JUNE 27, 1934
[Preliminary figures, subject to change, based on information received by Federal Reserve banks]
Deposits on Dec. 30, 1933, or nearest
available prior call date (in thousands of dollars)
Number of banks
Federal Reserve district
Total
Licensed
Not
Boston
New York....
Philadelphia.
Cleveland
Richmond
Atlanta
Chicago
St. Loi *
IU1SMinneapqlis..Kansas City.__
Dallas
San Francisco.
180
314
260
652
648
726
1,950
1,330
920
1,324
486
349
173
305
250
617
622
715
1,730
1,247
887
1,275
479
330
10
35
26
11
220
83
33
49
7
19
Total. __
9,139
8,630
509
Total
437, 743
968,024
404,658
529, 724
399,492
209,650
904, 028
338, 705
202, 748
261, 331
123,434
436,533
5, 216, 070
Licensed
416, 014
949,805
390, 252
486,511
392, 898
206,592
813,101
324,929
195,987
254, 549
122,110
429,088
4,981,836
Not
licensed
21,729
18, 219
14,406
43, 213
6,594
3,058
90,927
13,776
6,761
6,782
1,324
7,445
234, 234
497
FEDERAL RESERVE BULLETIN
July 1934
MEMBER BANKS LICENSED AND NOT LICENSED AS OF JUNE 27, 1934
I
Deposits on Mar. 5, 1934, of banks
licensed and not licensed on June
27, 1934 (in thousands of dollars)
Number of banks
Federal Reserve district
Total
All member banks:
Boston
_._
New York
Philadelphia..._
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco,.
Total..
National banks:
Boston
New York
PhiladelphiaCleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..Kansas City..Dallas
San Francisco.
Total..
State bank members:
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total.
1
Licensed
Not
licensed
Total
Licensed
Not
licensed
374
795
660
631
401
329
676
396
540
746
557
372
788
644
613
394
324
660
383
531
735
554
381
2,080, 009 2,079, 219
10,496, 636 10, 485, 505
2,148, 484
2,181,982
2, 340, 363 2,312, 025
1,140, 642 1,135,823
962,405
954, 757
3,428, 315 3,418,826
1, 018, 769 1,011,758
788, 590
784,021
1, 215, 876 1,212,501
940,189
939, 581
2, 992, 304 2, 989,199
790
11,131
33, 498
28, 338
4,819
7,648
9,489
7,011
4,569
3, 375
608
3,105
6,493
6,379
114 29, 586, 080 29, 471, 699
114, 381
328
632
596
532
340
273
517
323
469
701
497
310
625
583
518
334
268
508
313
460
690
494
303
5, 518
5,422
46
163
64
99
61
56
159
73
71
45
60
46
163
61
95
60
56
152
70
71
45
60
975
95'
7
1, 628, 640
4, 266, 477
1, 499, 742
1, 391, 394
834, 361
870, 518
2, 679, 258
693,065
740, 734
1, 066, 629
891, 039
2, 360, 388
1, 627, 850
4, 255, 346
1,471,452
1, 366, 640
829, 841
862,870
2, 674,806
687, 204
736,165
1, 063, 254
890, 431
2, 357, 283
18, 922, 245 18, 823,142
451, 369
6, 230,159
682, 240
948, 969
306, 281
91,887
749, 057
325, 704
47,856
149, 247
49,150
631, 916
451,369
6, 230,159
677, 032
945, 385
305, 982
91, 887
744,020
324, 554
47, 856
149, 247
49,150
631, 916
10,663,835 ( 10,648,557
I
790
11,131
28, 290
24,754
4, 520
7,648
4,452
5,861
4,569
3,375
608
3,105
99,103
5,208
3, 584
299
5,037
1,150
15, 278
Includes 5S banks whose Federal Reserve bank stock had been canceled and membership terminated but which, on June 27, 1934, were still
rtduded in the Comptroller of the Currency's records of unlicensed banks.
498
FEDERAL RESERVE BULLETIN
July 1934
REPORTING MEMBER BANKS IN LEADING CITIES
PRINCIPAL ASSETS AND LIABILITIES BY DISTRICTS AND FOR NEW YORK AND CHICAGO
[In millions of dollars]
Federal Reserve District
Total
Total loans and investments:
June 6
June 13
June 20-_
June 27
T«oans:
June 6
June 13
June 20
June 27
On securities:
June 6
June 13
Juno 20
June 27. _ ,
All other:
June 6_
June 13
June 20
June 27
Investments:
June 6 _
_
June 13
June 20
June 27
U.S. Government securities:
June 6
June 13
June 20
June 27 -.
All other:
June 6
June 13
June 20_
June 27_-_ .
Reserve with Federal Reserve
bank:
June 6
June 13
.
June 20 _
June 27._
Cash in vault:
June 6
June 13
June 20 ._
June27_
Net demand deposits:
June 6 _
_
June 13
June 20
June 27-__
Time deposits:
June 6
June 13
June 20
.
June 27_
Government deposits:
June 6
June 13
June 20 . .
June 27
Due from banks:
June 6
June 13
June 20 .
June 27 _
Due to banks:
June 6_
June 13
June 20
June 27 _
Borrowings from Federal ^Reserve banks:
June 6
June 13
June 20
June 27
Bos- New
ton York
Phila- Cleve- Richdelland mond
phia
Atlanta
Chicago
City
San New
St. Min- Kannesas
Louis apolis City Dallas Fran- York
cisco
Chicago
17,397
17,370
17,663
17,737
1,145
1,149
1,145
1,141
8,055
8,052
8,121
8,176
1,019
1,022
1,043
1,049
1,176
1,181
1,189
1,189
338
338
347
346
327
329
337
344
1,785
1,742
1,824
1,823
501
502
513
522
345
347
350
350
541
538
551
545
383
384
416
412
1,782
1,786
1,827
1,840
7,141
7,144
7,211
7,265
1,453
1,416
1,452
1,453
8,097
8,089
8,055
8,014
674
676
670
. 669
3,787
3,788
3,759
3,737
497
498
499
498
421
421
419
418
168
169
170
167
179
178
176
178
752
742
740
720
203
201
201
201
160
160
158
158
204
202
203
202
183
182
184
184
869
872
876
882
3,277
3,280
3,262
3,236
596
587
585
566
3,557
3,556
3,571
3,529
263
265
263
260
1,948
1,948
1,952
1,925
231
231
234
233
201
201
201
199
59
60
60
59
62
62
62
61
335
335
343
338
72
71
75
71
39
39
39
39
62
61
61
61
62
60
60
60
223
223
221
223
1,727
1,728
1,741
1,711
ooo
282
289
285
4, 540
4,533
4,484
4,485
411
411
407
409
1,839
1,840
1,807
1,812
266
267
265
265
220
220
218
219
109
109
110
108
117
116
114
117
417
407
397
382
131
130
126
130
121
121
119
119
142
141
142
141
121
122
124
124
646
649
655
659
1,550
1,552
1,521
1,525
314
305
296
281
9,300
9,281
9,608
9,723
471
473
475
472
4,268
4,264
4,362
4,439
522
524
544
551
755
760
770
771
170
169
177
179
148
151
161
166
1,033
1,000
1,084
1,103
298
301
312
321
185
187
192
192
337
336
348
343
200
202
232
228
913
914
951
958
3,864
3,864
3,949
4,029
857
829
867
887
6,276
6,243
6,582
6,665
300
301
311
309
2,968
2,972
3,061
3,111
273
271
292
295
561
562
576
577
119
118
126
127
96
99
107
112
689
651
740
756
195
201
212
222
132
133
139
139
223
222
237
232
149
147
181
179
571
566
600
606
2,791
2,802
2,873
2,926
562
529
567
584
3,024
3,038
3,026
3,058
171
172
164
163
1,300
1,292
1,301
1,328
249
253
252
256
194
198
194
194
51
51
51
52
52
52
54
54
344
349
344
347
103
100
100
99
53
54
53
53
114
114
111
111
51
55
51
49
342
348
351
352
1,073
1,062
1,076
1,103
295
300
300
303
2,808
2,881
2,824
2,901
232
239
251
262
1,359
1,403
1,386
1,438
140
133
136
136
122
120
122
126
50
47
45
44
28
26
28
25
476
503
463
486
68
71
70
74
36
83
243
248
236
247
48
49
48
48
51
51
48
53
13
13
12
12
18
19
18
19
11
11
11
12
6
6
6
6
50
52
49
50
12,499
12, 661
12,375
12,504
848
865
841
847
6,576
6,637
6,458
6,569
676
674
670
675
622
631
623
630
216
214
210
214
168
171
171
166
4,439
4,450
4,492
4,501
337
339
340
342
1,098
1,101
1,117
1,115
304
306
308
310
455
459
461
457
135
135
135
135
955
906
1,354
1,357
87
82
114
114
568
538
773
773
49
46
73
73
39
43
55
56
7
6
9
9
1,580
1,621
1,574
1,569
126
122
124
119
146
141
143
142
155
160
160
160
90
90
90
93
3,733
3,770
3,623
3,628
193
200
188
184
1,707
1,730
1,644
1,645
225
225
229
226
178
177
171
172
5
5
6
5
4
4
5
5
1
1
1
37
82
38
38
73
71
73
74
73
74
141
146
139
127
1,304
1,354
1,327
1,376
413
427
418
441
8
8
8
8
4
4
4
4
11
11
10
11
9
9
8
9
14
15
14
15
39
40
37
41
41
42
41
41
1,559
1,583
1,539
1,548
330
334
330
341
213
218
217
217
408
425
414
407
273
281
275
271
610
628
627
619
6,150
6,225
6,049
6,161
1,339
1,351
1,312
1,319
131
131
131
131
475
475
485
493
164
163
164
164
123
121
122
122
165
168
168
168
121
122
122
122
931
930
939
942
679
682
696
692
348
349
359
367
19
17
33
33
38
34
69
69
23
22
35
36
5
5
9
9
18
17
26
26
39
38
67
68
63
58
91
91
539
511
733
733
26
23
47
88
88
84
76
81
91
94
90
83
76
80
76
252
269
253
244
70
72
186
202
199
207
128
131
127
132
161
167
158
165
87
85
87
82
178
190
185
173
91
90
89
85
79
78
74
73
490
497
472
473
146
143
141
142
96
97
91
93
233
233
234
240
115
117
117
118
180
183
173
177
1,642
1,663
1,582
1,581
403
409
388
386
77
76
47
499
FEDERAL RESERVE BULLETIN
July 1934
OTHER BANKING AND FINANCIAL STATISTICS
SHIPMENTS AND RECEIPTS OF AMERICAN
CURRENCY TO AND FROM EUROPE
UNITED STATES POSTAL SAVINGS
[Balance to credit of depositors. In millions of dollars]
BY SELECTED BANKS I N N E W YORK CITY
[Paper currency only. In thousands of dollars]
End of month
1934
1933
Net
Net
ShipReReshipShipshipments ceipts ments ments ceipts ments
to
from
from (-)or
to
(-)or
Europe Europe receipts Europe Europe receipts
Month
(+)
(+)
5,304 +5,301
3
105 5,589 +5,484
101 13,786 +13,685
25 8,049 +8,024
1 12, 523 +12,522
6,866 +6,866
0
4 11, 755 +11, 751
5 6,153 +6,148
122 4,756 +4,634
5,905 +5,816
89
57 3,397 +3,340
6,976 +6,934
42
554 91,058 +90, 504
January
February.
March
April „
May
June
July
August
September
October
November
December
Total..
0
1
0
1
10
5,256
3,740
2,200
2,900
3,780
+5,256
+3,739
+2,200
+2,899
+3,770
1929
1930
1931
1932
1933
153.5
154.8
155.0
154.3
153.8
153.6
157.8
160.1
160.3
161.6
163.7
164.3
January....
February..
March
April
May
June
July
August.—
September.
October. _.
November.
December.
165.1
167.9
169.5
170.2
171.2
175.3
180.7
186.5
189.8
192.5
200.7
245.4
278.4
292.1
302.7
313.8
325.0
347.4
372.5
422.7
469.9
538.1
565.5
605.1
665.6
691.8
705.3
722.1
742.6
784.8
828.5
848.5
857.4
870.8
885.2
900.8
942.5
1,006.2
1,112.7
1,158.4
1,178.8
1,185.1
1,176. 7
1,177.7
1,180. 7
1,188.9
1,198. 7
1, 208.8
» Preliminary.
MATURITY DISTRIBUTION OF BILLS AND
SHORT-TERM SECURITIES HELD BY FEDERAL
RESERVE BANKS
[In thousands of dollars]
For description and back figures see BULLETIN for January 1933, p. 43.
Total
PAPER CURRENCY OF EACH DENOMINATION
IN CIRCULATION
[Outside Treasury and Federal Reserve banks.
In millions of dollars]
1934
1933
Denomination
Nov. 30 Dec. 30 Jan. 31 Feb. 28 Mar. 31 Apr. 30 M a y 31
402
33
$2
$5
$10
$20
$50
$100 . .
$500
$1,000
$5,000
$10,000
TotaL
702
1,205
1,336
362
613
125
239
7
12
5,022
386
32
719
1,229
1,342
364
618
125
237
8
10
5,085
388
33
$1
699
1,173
1,288
350
593
119
228
7
10
4,884
397
33
393
33
722
1,212
1,304
347
587
117
225
7
10
4,957
1,200.8
1,200.0
1,200.0
1,197. 9
1,197.3
730
1,230
1,302
346
584
117
230
7
9
4,986
394
33
722
1,225
1,292
342
581
117
230
8
9
4,954
396
33
719
1, 225
1,288
341
579
116
228
7
9
4,941
NOTE.—Figures include, in addition to currency outside the Treasury
and Federal Reserve banks, unassorted currency held by these institutions, amounting to $5,000,000-$18,000>000, and also $1,000,000 of currency
of unknown denominations reported by the Treasury as destroyed.
Bills discounted:
June 6
June 13
June 20
June 27
Bills bought in
open market:
June 6-_
June 13
June 20
June 27
Treasury certificates and bills:
June 6
June 13
June 20
June 27
Municipal warrants:
June 6
June 13
June 20
June 27
With- 16 to 31 to 61 to 91 days Over
in 15 30 days 60 days 90 days to 6
days
mos. 6 mos.
28,997
27,876
27,956
27,015
22,451
20,927
20,006
18,766
2,644
1,565
1,075
1,392
1,763
1,856
1,514
1,268
1,846
2,927
5,064
5,276
5,221
5,201
5,200
5,215
368
197
1,358
1,411
1,406
1,404
371
2,762
659
3,354
3,128
844
4
123
2,788
246
343
198
478
297
809,470 79,136 32,105 48, 225 75, 662 347,162 227,180
31,470 67,880 110, 629 294,462 228,681
821, 726
765,365 33,105 33, 225 80, 262 129,469 489,304 .
741,-'- 31,476 19, 600 82,462 116,769 491, 548 .
492
492
492
484
534
534
527
519
FEDERAL DEPOSIT INSURANCE CORPORATION—INSURED BANKS AND DEPOSITS
Number of insured banks
Insured deposits (in millions of
dollars) i
Class of bank
M a y 31,
1934
Members (Federal Reserve System)
National
State.
.
Nonmembers (Federal Reserve System)
Mutual savings .
Other
All banks
1
U p to $2,500 in each insured account.
Apr. 30,
1934
Dec. 31,
1933
M a y 31,
1934
Api.30,
1934
Dec. 31,
1933
Ratio insured to
total deposit
liability
M a y 31,
1934
(percent)
Number of
insured
accounts
M a y 31,
1934
6,337
6,296
5,863
8,685
8,663
8,312
32
34,342,035
5,390
947
5, 359
937
5,061
802
6,102
2,583
6,092
2,571
5,916
2,396
34
27
25,348,413
8,993, 622
7,742
7.687
6,754
7,109
7,098
6,751
235
7,507
235
7,452
4,488
2,621
4,488
2,610
14,079
13,983
8
12,617
15,794
*.
Beginning July 1, 1934, this figure will be $5,000.
'
2
21,815,183
70
59
8,907,384
12,907, 799
15,063
15 761
65
(2)
(2)
41
56,157, 218
N o t available separately.
500
FEDERAL RESERVE BULLETIN
July 1934
INDUSTRIAL PRODUCTION, BY INDUSTRIES (ADJUSTED INDEXES)
[Index numbers of the Federal Reserve Board; adjusted for seasonal variation. 1923-25 average=100]
1933
1934
Industry
May
Manufactures—Total
Pig iron
Steel ingots
Sept.
_
_ _.
_
Machinery activity J _- _
Carpet and rug loom activity 1
Deliveries.
Loom activity !
_. _ _.
FOOD PRODUCTS
Slaughtering and meat packingHogs.
Cattle
Calves
Sheep
Wheat flour
Sugar meltings ._
PAPER AND PRINTING..
101
91
'83
100
62
103
80
63
82
66
53
67
108
113
90
105
91
42
123
136
96
133
139
116
134
118
60
147
172
96
130
135
124
141
129
62
131
143
105
p 114
120
107
118
115
61
103
96
105
96
67
113
100
105
107
99
102
152
97
82
100
106
109
98
103
145
95
83
» 101
_ __
93
72
43
75
99
102
106
92
101
153
97
89
- -
C on SVI TT» p t i c\j\
_
Wood pulp and paper
Newsprint
Book paper
_
Wrapping paper
Fine paper
_
Wood pulp, mechanical
Wood pulp, chemical
Paper boxes
Newsprint consumption .
LUMBER
Aug.
49
29
51
TEXTILES
Silk
July
'77
IRON AND STEEL
Cotton consumption
Wool
_
June
P85
P96
Oct.
Nov.
76
61
45
63
Dec.
Jan.
Feb.
Mar.
Apr.
May
71
73
76
80
82
85
47
36
48
61
40
63
56
40
58
64
45
66
67
51
69
77
55
79
95
88
97
83
67
89
80
86
81
63
77
67
73
69
48
91
70
70
83
48
95
73
72
85
54
97
72
71
82
59
97
66
'68
71
53
95
65
63
73
58
91
82
103
92
103
114
129
115
112
95
110
113
102
105
146
64
84
105
127
147
95
106
144
70
75
85
90
85
91
104
151
76
76
'91
98
101
87
104
142
82
'82
86
89
85
88
106
147
81
'78
96
100
95
102
122
139
91
87
91
94
80
112
122
133
94
73
84
86
69
106
122
131
92
65
93
102
95
110
120
129
91
64
98
108
104
110
128
127
89
71
pill
P106
67
P106
P102
P104
69
60
p 107
p 99
60
92
80
96
61
99
172
96
64
103
95
121
69
113
183
100
30
38
46
'50
o
25
'65
0
16
110
79
74
79
93
129
P118
P137
P126
p 135
213
102
P
P91
P
P87
P90
66
P103
71
p 93
P103
P99
P92
P91
P86
85
66
87
P89
PIOO
PIOO
P92
v 100
64
63
66
68
68
135
149
106
P92
67
p 103
P99
P92
»70
P106
P97
P109
p 137
143
105
108
112
112
115
115
46
36
33
30
32
34
29
38
33
33
'69
1
19
61
1
15
'55
1
20
'45
0
39
'30
2
41
'46
3
41
'56
'2
26
'71
0
30
'78
2
59
'85
10
65
78
10
39
114
89
76
102
109
131
116
94
80
91
132
131
102
88
77
82
126
110
92
82
74
73
113
99
93
82
76
69
109
100
92
91
85
84
111
93
94
89
84
90
103
97
97
91
81
85
126
101
107
94
89
78
124
116
'106
88
84
72
116
' 118
114
' 95
r 90
85
118
127
117
93
89
78
118
*>132
42
84
61
112
56
144
50
130
37
107
35
70
39
52
36
106
40
99
55
98
57
83
80
109
125
112
95
80
56
56
61
98
54
58
106
94
58
71
73
147
187
87
95
88
61
_
141
167
106
154
198
92
101
80
75
155
198
92
106
82
91
153
198
87
98
84
96
157
205
82
99
88
91
152
195
77
102
88
82
145
184
77
93
102
75
137
172
80
92
92
77
142
177
89
95
92
78
144
181
87
98
86
85
143
177
95
101
90
91
152
191
98
99
100
93
94
97
68
115
120
80
143
148
111
111
116
75
103
107
72
90
93
68
97
100
72
108
113
68
97
101
69
'100
'103
'74
'106
'110
'82
143
61
204
117
69
151
123
68
163
115
68
151
108
57
143
95
62
118
123
67
166
138
74
188
132
66
181
119
66
158
78
135
66
186
84
90
91
87
81
81
85
88
91
100
'97
'100
'76
128
66
175
90
153
191
95
101
108
102
. 81
1
83
63
128
62
178
89
57
43
134
14
45
37
30
64
65
134
15
55
41
24
76
67
132
40
71
36
34
75
61
134
57
77
36
28
65
74
125
68
77
57
39
61
55
120
63
77
64
33
65
73
116
23
72
71
33
66
68
119
67
82
120
74
89
118
84
109
122
72
73
125
67
67
29
66
64
37
66
64
36
68
57
47
64
56
45
139
173
103
P
P
126
131
104
P
TRANSPORTATION EQUIPMENT:
Automobiles
Locomotives
Shipbuilding
LEATHER AND PRODUCTS
Tanning
Cattle hide leathers
Calf and kip leathers
Goat and kid leathers
Boots and shoes
CEMENT AND GLASS:
Cement
>_ _ . . .
Glass, plate
NONFERBOUB METALS: » Tin deliveries »
FUELS, MANUFACTURED:
Petroleum refining
Gasoline *
Kerosene >
_
Fuel oil l
Lubricating oil 1
Coke, byproduct
..
... .
RUBBER TIRES AND TUBES
Tires, pneumatic
Inner tubes
TOBACCO PRODUCTS
Cigars
Cigarettes
Minerals—Total
Bituminous coal
Anthracite
.» _
Petroleum, crude
Iron ore
Zinc.
Lead..
Silver
. _
72
76
127
40
65
66
44
p Preliminary.
' Revised.
' Corrected.
i Without seasonal adjustment.
«Includes also lead and zinc: see " Minerals."
NOTE.—For description see BULLETINS for February and March 1927. For latest revisions see BULLETINS for March 1932, pp. 194-196, and
September 1933, pp. 584-587.
501
FEDERAL RESERVE BULLETIN
July 1934
INDUSTRIAL PRODUCTION, BY INDUSTRIES (UNADJUSTED INDEXES)
[Index numbers of the Federal Reserve Board; without seasonal adjustment. 1923-25 averagt5 = 100]
1934
1933
Industry
Jan.
May
Cotton consumption
Wool
Consumption
Machinery activity
Carpet and rug loom activity
Silk
Deliveries
Loom activity
_
._.
_ ___
FOOD PRODUCTS
Slaughtering and meat-packing
Hogs
Cattle
Calves
Sheep
__
Wheat flour
Sugar meltings
Sept.
Oct.
Nov.
93
97
89
84
'76
70
67
75
72
43
75
93
59
96
79
60
81
65
52
67
59
45
61
44
37
44
53
39
55
54
40
108
116
85
96
91
42
122
135
96
126
133
109
121
118
60
134
153
96
121
122
115
126
129
62
126
136
105
108
108
103
110
115
61
»99
100
99
111
96
67
97
93
107
83
67
93
84
93
81
63
71
68
74
69
48
95
71
118
95
82
106
82
98
99
102
89
114
150
91
100
TEXTILES
Aug.
53
29
56
Pig iron
Steel ingots
July
80
Manufactures—Total
IRON AND STEEL
June
99
105
110
93
106
149
86
98
97
99
97
97
100
145
92
101
88
93
86
100
96
147
69
94
99
110
110
106
101
167
83
80
86
89
73
107
109
167
86
72
'9Q
108
111
100
106
141
89
64
89
106
112
93
100
144
78
'45
P
P74
P102
P100
68
p 109
»105
p 100
60
p 119
p 94
p 102
P99
P98
P91
66
P 104
70
p 104
P83
P70
P119
P102
P
107
128
204
91
P136
P
141
183
104
P
175
92
140
150
111
40
45
49
37
'74
0
20
73
1
28
'66
1
22
'61
101
75
70
75
87
118
110
87
75
99
109
124
115
94
78
106
123
128
50
92
_._
Wood pulp and paper
Newsprint
.
Book paper
Wrapping paper
Fine paper
Wood pulp, mechanical..Wood pulp, chemical
Paper boxes
Newsprint consumption..
p 103
'63
0
31
PAPER AND P R I N T I N G . . .
64
115
68
142
.
*87
61
90
80
97
75
99
172
99
P96
66
p 110
p 101
P126
32
LUMBER
65
103
96
121
75
114
190
99
P
Dec.
87
67
p 102
p 66
P 103
P
55
P91
Mar.
Apr.
May
'82
86
90
P89
67
46
69
75
53
78
85
59
88
Feb.
P97
P96
92
67
94
P89
72
83
48
101
76
79
85
54
102
73
73
82
59
104
65
'65
71
53
97
63
58
73
58
117
122
124
114
111
102
90
94
88
98
114
125
91
71
82
81
69
92
124
119
86
77
87
92
84
97
131
121
83
75
96
105
100
107
144
124
84
80
119
128
103
113
140
89
57
P102
P94
P102
v 104
65
63
p 94
65
69
P91
P
102
p 94
69
126
134
111
p 131
122
109
104
110
117
123
34
29
29
30
28
39
35
35
'19
2
36
'26
4
32
'46
1
18
'76
0
21
'96
2
46
'109
9
63
98
20
'40
0
28
113
90
75
99
124
127
107
87
77
85
119
119
102
87
78
82
113
112
88
89
85
79
110
88
81
87
81
77
112
76
90
87
82
70
119
92
109
97
95
72
129
117
'110
88
85
64
119
'124
112
'93
'90
76
117
124
107
87
84
74
109
p 120
65
132
46
108
40
70
38
50
28
80
30
88
37
106
42
115
108
P
TRANSPORTATION EQUIPMENT:
Automobiles
Locomotives ._
Shipbuilding-
LEATHER AND PRODUCTS
Tanning
Cattle hide leathers
Calf and kip leathers .
Goat and kid leathers
Boots and shoes
__
_
50
CEMENT AND GLASS:
Cement _
Glass, plate.
.
TOBACCO PRODUCTS
Silver.
._
109
125
112
95
80
56
55
58
71
73
154
198
86
106
82
89
153
198
83
98
84
93
157
205
83
99
88
89
152
195
80
102
88
82
146
184
83
93
102
77
138
172
86
92
92
78
142
177
91
95
92
78
144
181
88
98
86
87
143
177
92
101
90
94
152
191
97
99
100
94
153
191
92
101
108
101
139
145
96
140
145
105
110
114
83
98
101
72
79
81
62
73
75
52
75
78
49
90
93
62
'108
'112
'78
'117
'121
'89
147
72
204
126
72
167
131
72
176
128
77
167
116
69
150
97
73
117
99
50
136
131
57
185
120
57
164
113
60
150
'115
'118
'87
118
62
159
102
106
77
130
64
179
76
.
94
153
198
86
101
80
73
145
63
206
RUBBER TIRES AND TUBES
80
118
123
83
Petroleum refining _
Gasoline
Kerosene
Fuel oil _
Lubricating oil
Coke, byproduct ._
Cigars
Cigarettes
Minerals—Total-Bituminous coal
Anthracite .
Petroleum, crude
Iron ore__
.
Zinc . . . . . .
Lead
68
90
147
187
83
95
88
61
NONFERROUS METALS: i Tin deliveries
FUELS, MANUFACTURED:
Tires, pneumatic
Inner tubes
_
CO
54
82
89
94
93
88
84
80
85
88
91
81
87
50
43
136
21
46
36
29
57
57
137
30
53
42
23
69
55
135
81
66
34
29
74
61
136
117
71
35
28
69
75
129
131
73
54
37
67
71
122
108
75
66
33
72
75
115
19
72
74
36
69
67
115
74
89
115
78
95
116
84
89
121
60
76
125
68
68
29
70
65
37
71
66
39
72
58
52
67
55
46
62
76
129
60
66
65
43
i
1
r
Includes also lead and zinc; see "Minerals."
p Preliminary.
'Corrected.
Revised.
NOTE.—For description see BULLETINS for February and March 1927. For latest revisions see BULLETINS for March 1932, pp. 194-196 and
September 1933, pp. 584-587.
502
FEDEKAL RESERVE BULLETIN
July 1934
FACTORY EMPLOYMENT AND PAY ROLLS, BY INDUSTRIES
[Adjusted to Census of Manufactures through 1931. 1923-25 average=100)
Factory pay rolls
Factory employment
Without seasonal adjustment
Adjusted for seasonal variation
Without seasonal adjustment
Industry and group
May
April
May
1933
1934
1933
1934
May
April
May
1934
May
1933
April
May
82.4
82.3
62.6
82.4
82.2
62.9
67.1
67.3
42.7
75.1
76.8
48.6
81.3
82.0
47.7
95.5
58.5
91.2
134.8
72.6
72.9
51.5
81.9
85.3
45.8
90.9
56.0
88.2
131.4
51.0
-19.8
33.0
57.7
51.2
45.6
56.6
40.6
72.9
89.7
74.2
75.7
47.6
80.9
81.3
47.4
93.6
58.9
90.3
135.2
71.5
71.4
51.0
79.1
84.7
45.3
88.4
56.7
87.8
132.7
50.4
49.1
32.4
57.4
50.8
45.3
55.6
40.8
72.2
90.0
61.2
66.1
27.6
59.3
61.8
30.6
68.5
41.5
86.9
123.1
56.8
59.4
28.0
59.4
70.3
28.3
63.8
37.6
84.2
110.6
29.8
27.8
16.2
36.8
31.4
24.0
35.8
21.6
67.0
66.6
81.3
83.0
65.4
68.9
73.6
71.9
201.2
75.9
80.3
87.2
63.7
69.3
71.6
70.8
200.2
75.0
50.1
35.4
45.5
37.1
45.2
31.3
119.0
46.8
82.0
80.5
65.4
67.9
72.4
70.8
239.4
74.7
81.5
82.3
63.7
68.2
70.4
69.8
253.7
74.4
50.5
34.3
45.5
36.6
44.5
30.8
141.7
46.1
62.2
87.2
49.9
45.2
56.8
59.3
112.4
62.9
60.5
93.6
47.8
44.8
54.4
57.7
108.9
60.9
30.6
28.0
29.2
20.7
26.4
18.6
71.0
31.4
99.4
114.4
48.2
29.2
73.1
99.1
114.9
43.9
25.3
71.7
53.9
22.8
10.9
47.5
91.0
104.1
43.9
28.6
70.9
93.8
108.8
40.6
24.9
67.3
44.7
49.0
20.8
10.7
46.1
88.0
100.4
46.7
12.7
60.0
92.2
107.4
43.0
10.9
53.9
38.7
42.9
17.9
4.0
32.5
59.6
66.7
59.1
57.8
66.3
57.2
49.7
66.2
48.5
59.2
66.7
58.7
57.4
66.3
56.8
49.4
66.2
48.2
53.8
59.4
53.5
53.0
59.2
52.7
38.9
55.5
37.7
NONFERROUS METALS AND PRODUCTS..
Brass, bronze, and copper
Lighting equipment
Silverware and plated ware
Smelting and refining
Stamped and enameled ware
_.
77.8
81.2
65.6
71.1
65.3
95.6
76.9
79.1
65.4
72.7
62.8
94.0
54.1
55.2
44.3
51.8
41.9
70.0
78.2
80.7
66.7
71.6
65.8
94.3
76.0
77.7
64.6
72.6
61.5
91.4
54.4
54.9
45.1
52.2
42.2
69.0
62.1
52.7
52.0
42.0
83.6
58.9
59.8
52.3
51.2
38.7
80.8
35.3
35.7
32.9
32.1
24.1
46.6
LUMBER
51.0
61.3
40.4
36.1
49.4
60.8
39.4
34.3
37.9
53.6
31.8
23.7
51.3
64.5
39.9
35.6
50.0
63.0
39.2
34.5
38.2
56.4
31.4
23.3
34.6
40.5
25.3
24.2
33.3
40.3
24.6
22.5
20.7
28.8
17.4
11.5
57.7
33.1
57.6
95.1
74.9
55.3
30.5
48.0
95.9
73.9
41.3
24.4
40.5
64.6
54.7
56.2
31.3
55.9
93.4
74.2
54.7
30.3
48.2
94.4
72.8
40.2
23.1
39.3
63.4
54.2
39.5
18.1
35.8
75.8
50.2
38.8
16.4
30.6
80.8
50.0
24.5
9.8
21.3
49.6
29.3
96.1
94.9
68.0
101.4
113.0
113.9
72.8
75.3
94.7
81.5
126.5
78.0
106.7
99.1
96.8
70.2
103.3
116.4
114.5
78.4
74.9
100.0
88.0
132.2
83.3
108.3
82.3
78.3
49.0
77.9
89.2
97.8
69.2
68.9
88.2
73.7
122.8
79.5
91.7
96.0
94.8
67.3
100.6
113.0
113.2
72.4
77.0
94.8
85.7
120.4
78.1
107.2
97.8
96.1
68.4
102.9
113.6
112.4
77.3
76.1
97.3
90.8
120.0
75.9
109.6
82.3
78.2
48.5
77.4
89.2
97.2
68.9
70.4
88.1
77.4
117.0
79.2
92.2
74.1
74.9
53.3
79.5
87.8
106.4
56.3
54.1
68.1
53.3
88.6
67.9
94.1
79.8
79.3
54.7
85.9
94.8
108.9
63.3
55.4
76.1
61.4
98.6
76.9
97.9
52.0
52.1
32.6
49.2
69.7
72.2
43.4
44.8
48.8
35.2
65.8
59.6
58.6
91.4
91.3
92.1
92.3
92.2
93.2
79.9
81.6
73.8
94.0
94.2
93.4
93.0
93.1
93.0
82.2
84.2
74.8
78.9
77.6
82.0
82.1
81.8
81.9
57.3
56.5
59.2
99.6
113.2
84.4
67.9
71.6
74.0
79.6
96.7
86.4
97.2
111.2
79.2
71.9
74.7
74.5
64.9
92.4
84.7
85.1
96.8
73.2
57.2
72.1
65.2
59.7
80.4
75.8
106.4
113.2
83.4
106.1
79.6
75.4
76.0
97.9
85.9
104.0
113.0
80.8
97.2
82.2
75.6
67.5
95.4
85.3
91.1
96.8
72.3
89.4
80.2
66.4
57.0
81.4
75.3
87.2
95.3
64.7
68.6
60.6
61.2
63.7
80.7
70.5
83.1
91.3
61.9
69.5
61.8
61.2
51.4
76.1
70.4
70.4
78.1
56.6
48.5
51.1
52.7
46.5
62.1
Total..
IRON AND STEEL AND PRODUCTS
—
Blast furnaces and steel works
Cast-iron pipe
Cutlery and edge tools
Hardware
-Steam, hot-water heating apparatus, etc..
Stoves
Structural metal work
Tin cans, etc.
Wirework
_
MACHINERY
Agricultural i m p l e m e n t s . .
Electrical machinery, etc
Engines, turbines, etc
Foundry and machine-shop p r o d u c t s Machine tools
Radios and phonographs.
Textile machinery
TRANSPORTATION
EQUIPMENT
Automobiles
Cars, electric and steam railroad.
Locomotives
Shipbuilding
RAILROAD R E P A I R
SHOPS..
Electric railroads
Steam railroads
AND PRODUCTS..
Furniture
Lumber, mill work
Lumber, sawmills
S T O N E , CLAY, AND GLASS
PRODUCTS.
Brick, tile, and terra cotta
Cement._.
Glass
Pottery
T E X T I L E S AND PRODUCTS
A. Fabrics
Carpets and rugs
Cotton goods...
Dyeing and finishing
K n i t goods
Silk and rayon goods
Woolen and worsted goods.
B. Wearing apparel
Clothing, men's
Clothing, women's
Millinery
Shirts and collars
LEATHER AND PRODUCTS.
Boots and shoes.
Leather
F O O D PRODUCTS
Baking
Butter
_
Canning and preserving
Confectionery
Flour
Ice c r e a m . .
Slaughtering and meat packing.
Sugar refining, cane
503
FEDERAL RESERVE BULLETIN
July 1934
Factory employment and pay rolls, by industries—Continued
Factory pay rolls
Factory employment
Without seasonal adjustment
Adjusted for seasonal variation
Without seasonal adjustment
Industry and group
1934
May
1933
April
May
61.3
76.9
64.7
79.3
62.8
59.2
72.5
57.5
Boxes, paper
-Paper and pulp
._..
Book and job printing
Printing, newspapers and periodicals..
95.9
85.3
107.2
86.6
99.1
95.1
85.3
106.8
84.7
99.0
68.4
82.1
75.1
90.8
CHEMICALS AND PETROLEUM PRODUCTS. _
106.1
A. Chemical group, except petroleumChemicals
Druggists' preparations
Explosives
Fertilizers
Paints and varnishes. _
Rayon and allied products
Soap
B. Petroleum refining
113.3
85.7
111.2
97.7
98.3
111.8
107.4
267.7
102.3
109.5
89.1
47.8
82.7
TOBACCO PRODUCTS
-
Chewing and smoking tobacco and snuff.
Cigars and cigarettes
P A P E R AND PRINTING
RUBBER PRODUCTS
Rubber boots and shoes
Rubber tires and inner tubes..
1933
1934
May
April
May
1934
May
1933
April
May
61.6
78.8
59.4
65.7
81.8
63.6
59.5
74.3
57.6
46.3
65.3
43.9
46.2
66.3
43.6
42.1
62.6
39.6
96.5
88.7
107.2
87.6
95.5
87.8
106.8
85.3
98.7
81.3
71.1
82.1
75.9
90.5
76.2
79.8
73.4
88.4
79.7
75.7
81.3
70.8
87.3
64.9
55.6
58.7
59.0
76.7
109.4
109.8
110.1
102.4
102.2
97.8
102.2
319.0
103.3
107.8
87.1
85.1
76.7
84.9
67.9
79.9
80.8
246.9
84.1
95.4
92.3
68.0
110.8
100.6
99.2
181.5
102.6
319.0
104.5
107.8
107.9
107.4
113.1
101.3
102.0
105.3
103.6
267.7
103.0
109.7
88.3
75.4
81.8
65.5
84.9
83.8
246.9
83.5
95.3
94.4
88.5
75.2
84.0
87.9
191.2
87.1
92.7
95.8
92.4
78.6
132.1
83.0
221.3
88.8
92.0
71.4
41.8
52.3
67.1
149.1
68.9
80.2
'90.0
55.5
82.1
62.4
37.0
56.8
87.5
50.3
78.9
58.0
80.7
61.3
38.9
54.2
70.3
42.8
64.5
'73.4
49.6
67.6
43.7
30.9
NOTE.—Revised indexes. The ind exes for factory employment and pay rolls unadjusted for seasonal variation are compiled by the Bureau of
Labor Statistics. For description and back figures see BULLETIN for May 1934, pp. 270-271. For description and back figures for the seasonally
adjusted index of factory employment computed by the Federal Reserve Board, see BULLETIN for June 1934, pp. 324-343.
r
Revised. Indexes for March 1934 also have been revised as follows: Factory employment without seasonal adjustment, 87.1; factory employment adjusted for seasonal variation, 88.3; factory pay rolls without seasonal adjustment, 70.5.
504
FEDERAL RESERVE BULLETIN
July 1934
WHOLESALE PRICES, BY GROUPS OF COMMODITIES
[Index of Bureau of Labor Statistics. 1926=100]
Other commodities
All
commodities
products
Foods
1929
1930
1931
1932
1933
95.3
86.4
73.0
64.8
65.9
104.9
88.3
64.8
48.2
51.4
99.9
90.5
74.6
61.0
60.5
91.
85.
1933—May
62.7
65.0
68.9
69.5
70.8
71.2
71.1
70.8
50.2
53.2
60.1
57.6
57.0
55.7
56.6.
55.5
59.4
61.2
65.5
64.8
64.9
64.2
64.3
62.5
66.
1934—January
February. _ ._
March __ .
April
May
72.2
73.6
73.7
73.3
73.7
58.7
61.3
61.3
59.6
59.6
Week ending—
1934—Mar 3
Mar. 10 .
Mar. 17
Mar. 24 . .
Mar 31
73.6
73.8
73.7
73.5
73.4
Year, month, and week
June
.
July
August
September...
October
November
December
_.
Apr. 7
Apr. 14
Apr. 21
Apr. 28
May 5
May 12 . . .
May 19
May 26
__
_
June 2
June 9
June 16
June 23
June 30
Hides and Textile Fuel and Metals Building Chemi- House- MiscelTota 1 leather products lighting and metal materials cals and furnish- laneous
materials products
drugs ing goods
products
ft
109.1
100.0
86.1
72.9
80.9
90.4
80.3
66.3
54.9
64.8
83.0
78.5
67.5
70.3
66.3
100.5
92.1
84.5
80.2
79.8
95.4
89.9
79.2
71.4
77.0
< .2
H
77. ?
77. ?,
77. 5
76.9
82.4
86.3
91.7
92.3
89.0
88.2
89.2
55.9
61.5
68.0
74.6
76.9
77.1
76.8
76.4
60.4
61.5
65.3
65.5
70.4
73.6
73.5
73.4
77.7
79.3
80.6
81.2
82.1
83.0
82.7
83.5
71.4
74.7
79.5
81.3
82.7
83.9
84.9
85.6
64.3
66.7
67.3
66.2
67.1
78.3
78.7
78.5
78.6
78.9
89.5
89.6
88.7
88.9
87.9
76.5
76.9
76.5
75.3
73.6
73.1
72.4
71.4
71.7
72.5
85.5
87.0
87.1
87.9
89.1
62.0
62.0
62.0
61.4
61.4
67.5
68.1
67.7
67.3
66.5
78. i
78. 7
78.
78.
78.6
89.8
89.0
88.8
88.8
89.4
76.6
76.3
76.0
76.0
75.8
73.5
73.0
72.6
72.4
72.4
73.3
73.3
73.3
73.5
60.4
60.5
59.7
59.1
66.1
65.8
66.6
66.6
78.7
78.9
78.8
79.2
89.5
89.8
89.7
89.6
75.7
75.5
75.2
75.0
73.4
73.8
73.5
73.7
59.1
60.5
59.6
60.1
66.6
67.3
67.2
67.4
79.0
89.5
89.3
88.5
88.0
73.9
73.8
74.6
75.0
74.8
60.6
60.7
63.7
65.8
64.8
67.7
67.6
70.2
71.3
70.9
79.0
78.9
87.7
87.2
87.6
88.1
88.2
75.0
70.
71. ?,
68.9
72.2
74.1
76.1
79.
79.
79.0
78.
78. 7
78. 5
Feb.
52.8
46.8
51.8
63.2
48.2
68 3
62.3 58.8
49.5 49.2
67 7 65.7
63.9
47.8
65.0
58.8
69.3
58.8
52.3
60.4
69.1
85 7
71.7
53.3
64 1
68.9
85,3
71.6
56.5
63 5
66.5
84.8
67.9
57.3
62 1
67.1
87.3
68.2
60.0
60.8
83.6
67.3
68.3
77.2
98.4
78.0
80.1
86.9
98.5
73.4
79.7
86.7
98.5
76.7
78.4
86.7
98.5
73.5
76.3
86.8
61.9
57.9
48.0
29.1
61.5
70.7
87.2
88.6
67.0
31.0
84.3
77.8
87.2
89 1
65.6
29.4
84.0
78.5
85.7
88.2
64.2
28.4
82.0
78.9
82.7
86.3
65.3
26.5
81.0
77.3
78.5
78.3
75.2
94.6
99. 5
31.2
81.2
91.1
83.5
91.8
89. 3
50.3
81.2
91.1
83.4
88.5
89. 4
48.7
78.1
93.7
84.3
88.3
92. 2
49.4
75.7
94.6
84.5
FARM PRODUCTS:
FOODS:
HIDES AND LEATHER PRODUCTS!
Boots and shoes
Hides and skins
Leather
Other leather products
TEXTILE PRODUCTS:
Clothing .
Cotton goods
Knit goods
Silk and rayon
Woolen and worsted goods
Other textile products.
FUEL AND LIGHTING MATERIALS:
Anthracite
Bituminous coal
Coke
Electricity
Petroleum products..
re ?
;re. 7
re. 2
;re. I
71.7
73.4
74.8
77.6
79.3
81.2
81.0
81.0
58.9
60.8
64.0
65.4
65.1
65.3
65.5
65.7
86.3
86.6
86.4
86.7
87.3
74 4
r5.5
ffi, 7
* 5
75.
rs.4
80.8
81.0
81.4
81.6
82.0
67.5
68.5
69.3
69.5
69.8
85.1
86.4
86.5
86.4
86.4
86.5
86.2
86.2
86.2
86.3
75. 4
*
r«.7
r5.8
rs.
* 8
r5.8
82.3
82.5
82.4
82.5
82.5
68.6
68.8
69.2
69.2
69.3
72 6
72.9
73.1
73.5
86.5
86.9
87.0
88.3
75.5
75A
75.5
^5.3
82.5
82.8
83.1
83.0
69.8
69.6
69,3
69.2
74.1
73.5
73.5
73.1
72.7
73.0
73.2
73.4
88.7
88.8
88.7
88.7
86.7
86.5
86.3
87.1
87.4
87.4
87.0
87.2
75. 3
'5. 3
75 A
75.3
83.1
83.0
83.0
83.9
69.6
70 1
69.7
69 7
72.7
72.7
72.5
72.5
71.8
73.7
73.8
73.7
73.4
73.3
88.7
87.8
88.0
87.1
87.0
87.6
87.8
87.7
87.6
87.8
75.3
75 A
-75 A
75. 5
83.6
83.4
83.4
83.2
83.2
69.6
70 0
70 3
70.5
70 1
re. 5
7?, 6
re.
re.
re.
re.
7
7
4
7
r5.8
1934
1933
Mar. Apr. M a y
May
Butter, cheese, and milk
Cereal products
Fruits and vegetables
Meats
..
.
Other foods
82.6
77.7
69.8
64 4
62.5
1934
1933
Subgroups
Grains.
Livestock and poultry
Other farm products
94.3
92.7
84.9
75.1
75.8
i39.1
79 3
Subgroups
Feb.
83.0
75.2
90.4
56.6
85 ?,
86.3
97.8
65.8
85.2
86.3
97.8
66.3
85 ?,
87.3
97.8
68.0
91 1
90.2
97.3
68.1
75.2
81.8
59.6
70.7
61.3
81.7
78.8
87.2
93.9
87.3
79.3
72.7
86.8
90.3
88.5
93.9
86.4
79.7
72.7
86.8
89.9
90.7
89.7
87.2
79.8
76.2
86.8
90.4
91.2
89.4
85.9
80 3
75.0
94.5
92 0
80.9
55.0
66.8
63.1
78.8
71.5
69.2
72.5
79.0
71.9
69.5
72.6
78.6
72.2
68.7
72.7
78.6
72.8
66.4
73 2
72.0
71.6
83.0
79.2
83.2
79.8
83.5
79.9
84.1
80 1
37.6
54.4
70.7
10.2
74.0
43.5
73.4
82.7
21.4
83.2
44.6
79.6
82.7
22.8
83.2
44.6
76.1
83.6
24 6
83.2
44.6
72 5
83.7
27 7
83.6
METALS AND METAL PRODUCTS:
Agricultural implements
Iron and steel
Motor vehicles
Nonferrous metals..
BUILDING MATERIALS:
Brick and tile
Cement
Lumber
Paint materials
Plumbing and heating
Structural steel
Other building materials
Mar. Apr. May
May
CHEMICALS AND DRUGS:
Cheinicals
rs
Drug, and nhftrmflcmitioala
Fertilizer mateirials
Mixed fertilizer s
HOUSEFURNISHING
GOODS!
Furr tishings
Furr. itnra
MISCELLANEOUS:
Auto tires and tubes
Cattle feed .__
Paper and pulp
Rubber, crude
Other miscellaneous
50.7
Back figures.—For monthly and annual indexes of groups, see Annual Report for 1932 (table 110); indexes of subgroups available at Bureau of
Labor Statistics. For weekly indexes covering 1932 and 1933, see Annual Report for 1932 (table 111) and BULLETIN for February 1934, p. 139.
JULY
505
FEDERAL RESERVE BULLETIN
1934
CONSTRUCTION CONTRACTS AWARDED, BY TYPES OF CONSTRUCTION
[Value of contracts in millions of dollars; figures for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation]
Total
Commercial
Factories
Residential
Month
1933
1933
January
February
March
April
May
June
July
August
September
October
83.4
52.7
60.0
56.6
77.2
102.3
82 6
106.0
120.1
145.4
162 3
207.2
>
No VPTT) b$r
December
Year
1934
186.5
96.7
178.3
131.4
134.4
__
12.0
11.8
16.0
19.1
26.5
27.7
23 6
21.9
21.5
21.5
23 6
23.9
1933
1934
4.3
2.8
6.4
6.2
9.4
26.8
17.8
14.1
15.1
9.8
8 2
6.7
15.1
14.5
28.1
22.8
24.8
127.5
249.3
1, 255. 7
CONSTRUCTION
1934
CONTRACTS AWARDED, BY
DISTRICTS
[Value of contracts in thousands of dollars, figures for 37 States east of the
Rocky Mountains, as reported by the F. W. Dodge Corporation]
10.7
4.2
15.9
8.4
8.3
1933
5.8
7.6
7.2
6.6
8.9
9.6
11 5
10.5
7.4
9.8
7 3
7.1
99.4
1934
9.4
7.6
13.0
11.9
24.7
Public works
and public
utilities
Educational
1933
1934
1933
42.7
17.2
17.6
13.6
19.0
24.4
18.9
51.4
60.7
92.7
111 1
133.3
113.7
53.2
92.9
69.9
56.8
1.4
2.2
1.3
1.1
1.7
3.5
2.9
2.6
2.2
2.2
2.6
16.3
1934
1933
19.6
5.4
• 8.8
8.6
10.4
40.0
602.7
All other
17.3
11.0
11.5
9.9
11.6
10.3
7 8
5.6
13.0
9.3
9 6
20.0
BANK DEBITS
[Debits to individual accounts. In millions of dollars]
1933
Total (11 districts)
April
13,247
33, 708
6,735
7,771
14,325
10, 474
22,186
8,385
5,727
4,964
6,924
Boston.
NewYork__
Philadelphia
Cleveland
Richmond
Atlanta—
Chicago.
St. Louis
Minneapolis
Kansas City
Dallas
April
1
140
14, 653
14,104
16,954
14, 277
13,977
11,509
11
7
10
13
7
15
21
5
9
15
10
18
1,582
15, 244
1,459
1,419
517
665
3,569
724
465
810
434
1,869
1,660
17, 498
1,456
1,362
538
660
3,718
688
465
779
434
1,972
1,335
14,504
1,066
1,062
405
555
2,770
647
454
663
352
1,673
141
28, 757
May
11, 802
18,830
11, 959
10,810
11,014
13, 252
24, 534
7,983
7,567
5,967
7,696
134, 446
131,414
8,542
17,518
5,013
6,604
5,409
5,214
10,429
8,296
2,503
4,095
3,548
77,172
New York City
Outside New York City
Federal Reserve district:
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
_
Chicago
St. Louis
._Minneapolis
Kansas City
_._
Dallas
San Francisco...
Total
COMMERCIAL FAILURES, BY DISTRICTS
[Amounts in thousands of dollars; figures reported by Dun & Bradstreet]
Number
1934
97
326
36
73
64
19
115
22
24
32
18
151
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis. _.
Kansas C i t y . . .
Dallas
San Francisco..
Total..
. . ! 977
..
May
May
May
May
1933
Number
of centers
Federal Reserve district
Federal Reserve
district
17.9
11.8
19.6
9.8
9.5
136.9
1934
1934
1934
Liabilities
1934
1933
April
May
100
249
44
92
59
76
153
24
36
33
31
155
214
476
87
145
124
90
249
59
54
92
63
256
1933
May
April ] M a y
1,397
7,562
2,118
3,534
1,707
181
1, 769
218
442
851
166
2,617
1,871
8,811
2,055
3,328
672
1, 016
4,242 i
306
404 I
261
426
2, 396
1,052
1,909 | 22, 561 ! 25, 787
3,925
11, 641
2,848
6, 620
3,876
2,571
7,228
1,414
755
1, 595
1,297
4,201
47, 972
31, 231
25, 486
FEDERAL RESERVE DISTRICTS
ARK.
Liltle*Rock/
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