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FEDERAL RESERVE
BULLETIN




ISSUED BY THE

FEDERAL RESERVE BOARD
AT WASHINGTON

JUNE, 1916

WASHINGTON
GOVERNMENT PRINTING OFFICE
1916

FEDERAL RESERVE BOARD.
EX OFFICIO MEMBERS.

CHARLES S. HAMLIN, Governor.

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

Secretary of the Treasury,
Chairman.

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

JOHN SKELTON WILLIAMS,




Comptroller of the Currency.

H. PARKER WILLIS, Secretary.

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




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

in sending the Bulletin to others the

Board feels that a subscription should be required.

It has

accordingly fixed a subscription price of $2 per annum.

Single

copies will be sold at 20 cents,

Foreign postage should be added

when it will be required.

Remittances should be made to the

Federal Reserve Board,

Member banks desiring to have the

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

in

TABLE OF CONTENTS.
Page.

Work of the Board
,...
Clearing and collection plan.
Wisconsin petition for transfer denied.
Sale of bonds through Treasurer of United States
New national-bank charters
Rediscounts by depositaries of Indian funds
,
Fiduciary powers granted
Commercial failures during 1916
Gold settlement fund
,
Informal rulings of the Board...
Law department
Business conditions throughout the 12 Federal Reserve districts
Distribution of discounts
Acceptances
Federal Reserve Bank statements.
Gold imports and exports
Earnings on investments of Federal Reserve Banks
Discount rates in effect?




IV

261
262
264
264
265
266
266
267
268
272
274
275
293
298
301
305
307
308

FEDERAL RESERVE BULLETIN
VOL. 2

JUNE 1, 1916
WORK OF THE BOARD.

The outstanding feature of the work of the
Federal Reserve Board for the month of May
has been the further development of the plan
for the clearing and collection of checks, which
was announced in the Federal Reserve Bulletin of May 1. A statement of the mode of
operation of the new plan will be found elsewhere in this Bulletin. The further working
out of the details of the new plan is now in the
hands of the executive officers of the Federal
Reserve Banks. The Board had hoped to
inaugurate the new system on June 15, but has
found it necessary to defer this for 30 days, or
until July 15, 1916. Many inquiries have
been received by the Board concerning the
operation of the plan, also both commendations and protests. On May 12 the Board
gave a hearing to a committee of five, appointed
by the executive council of the American
Bankers' Association at its Briarcliff meeting
on May 9 and 10. This committee, on behalf
of country banks, recommended a postponement of the date when the new clearing and
collection plan should go into effect, in order
to give member banks as much time as possible
to adapt themselves to the conditions soon to
be created.
The Board devoted much of its time in the
early part of May to perfecting and explaining
amendments to .the Federal Reserve Act now
pending before Congress. It is anticipated
that early action will be taken by Congress
upon the Board's recommendations.
The discount rates for commodity paper in
the Minneapolis and Atlanta districts have
been increased in May from 3 to 3J per cent.
Otherwise the discount rates effective in the
12 districts remained unchanged.




No. 6

Members of the Federal Reserve Board have
participated in meetings of bankers' associations during the month as follows: May 18,
Governor Hamlin addressed the Bankers7
Club of Cleveland, Ohio, and on May 25
visited the Atlanta Federal Reserve Bank, and
addressed the Georgia Bankers Association at
Macon, Ga., on May 26. Mr. Warburg delivered an address before the Economic Club of
New York on May 22. Mr. Miller visited the
Federal Reserve Bank of St. Louis on May 24,
and addressed the Missouri Bankers' Association and the St. Louis Clearing House Association in connection with this visit. Mr. Williams, the Comptroller of the Currency, delivered an address at the annual convention of
the Tennessee Bankers' Association in Chattanooga on May 19.
Secretary McAdoo and Mr. Warburg returned to Washington Friday, May 5, from the
trip which they took to South America with
the United States section of the International
High Commission. Statements of the results
of the trip are not reprinted here^ as they
were given wide publicity at the time.
Members of the Federal Advisory Council
met in Washington May 16 for their quarterly
meeting. The meeting was attended by eleven
members, all districts except Kansas City
being represented. Those present were: Mr.
J. B. Forgan, Chicago; Mr. Daniel G. Wing,
Boston; Mr. J. P. Morgan, New York; Mr.
Levi L. Rue, Philadelphia; Mr. W. S. Rowe,
Cleveland; Mr. J. W. Norwood, Richmond; Mr.
Charles A. Lyerly, Atlanta; Mr. Frank O.
Watts, St. Louis; Mr. C. T. Jaffray, Minneapolis; Mr. T. J. Record, Dallas; Mr. Herbert
Fleishhacker, San Francisco. A joint session
of the Federal Reserve Board and the Council
was held on May 16, at which the Council gave
261

262

FEDEKAL EESEEVE BULLETIN.

its replies to questions propounded by the
Boerd and expressed its views on subjects
initiated by it. Among the topics which received the .attention of the Council were the
reserve situation in the different districts, discount rates, and the prevailing business
conditions. Business conditions were reported
by members of the Council as varying from
"something over normal" to u a greater
activit}^ than was ever before known/' except
that on the Pacific coast, the report showed less
exceptional conditions, although the mining
and lumber industries were reported as showing
marked activity. Excellent reports of crop
conditions were made, with some qualification as to the crop outlook for wheat in the
Northwest, and grain and fruit crops in California.
A general conference of the Federal Keserve
Agents with the Federal Reserve Board,
which began Monday, May 29, is now in
progress.
Clearing and Collection.
After consultation by wire with the governors of the 12 Federal Reserve Banks, the Federal Reserve Board on May 22 voted unanimously to defer the inauguration of the new
clearing and collection plan to July 15. It was
found that this was the earliest date at which
it was possible for the Federal Reserve Banks
to be prepared to make the plan actually operative in all districts.
It had been suggested that the development
of the plan might be undertaken by two or
three successive steps. This the Board considered undesirable, and the plan will ^become
generally effective on July 15.
Many letters commending the plan have been
received by the Board from widely separated
sections of the United States. These have
come from 21 different States, and in many
instances represent the views of large business
associations. Up to May 22 but a few letters
of protest had been received.




JUNE 1, 1916.

On May 12 a hearing was given by the Board
to members of a committee appointed by the
executive council of the American Bankers'
Association at its meeting at Briarcliff, N. Y.
The members of the committee were: Mr. W.
H. Bucholz, Omaha, Nebr.; Mr. John MeHugh, New York City; Mr. W. H. Webb, San
Angelo, Tex.; Mr. Walker Broach, Meridian,
Miss.; Mr. J. Elwood Cox, High Point, N. C.
Each member of the committee expressed his
views to the Board and there was general discussion.
The check clearing and collection plan which
has been formulated by the Federal Reserve
Board is not compulsory upon any bank so far
as the use of facilities to be provided is concerned.
Member banks, as long as they comply with
the statutory requirements, may continue to
carry accounts with their approved reserve
agents and with other banks to whom they
may send items for collection and from whom
they may receive, for similar purposes, checks
drawn upon themselves or upon other banks.
They will, however, be required to pay without deduction checks drawn upon themselves
and presented at their own counters for payment. Remittance of such checks by the
Federal Reserve Bank of their district through
the mail will be construed as presentation at
their own counters and they must settle with
the Federal Reserve Bank for such checks, either
by acceptable checks upon other banks or by
remittance of lawful money or Federal Reserve
notes at the expense of the Federal Reserve
Bank. Checks drawn upon a member bank
which have been received by the Federal Reserve Bank will not be charged against its
reserve account until sufficient time has elapsed
for the checks to have reached the member bank
and for returns to have been received in due
course by the Federal Reserve Bank.
The Board's clearing plan provides that a
small service charge (say 1 \ to 2 cents per item)
will be made at stated intervals against such
banks as send to the Federal Reserve Bank

JUNK 1,1916.

FEDERAL EESEBVE BULLETIN.

checks on other banks for collection and credit;
but it follows that no portion of this charge
can be assessed against any bank unless it
shall have elected to avail itself of the facilities
offered. Federal Reserve Banks will handle,
besides checks drawn on member banks, checks
on such State banks as can be collected at par,
and member banks desiring to handle for a
Federal Reserve Bank checks drawn on State
banks, will be given the preference. During
crop-moving periods it is thought that this
will be a distinct advantage to member banks.
There is no disposition to deprive member
banks of any income that they may have been
in the habit of receiving from the collection of
drafts (other than bank checks) or from the
purchase or discount of commercial bills of exchange, and so there should be no diminution
in the customary profits of member banks from
such sources.
Many letters in regard to the plan have been
received, a great number of which are commendatory, and it appears from those of opposite tenor that the objections raised are based
upon an apprehension that profits will be decreased if the plan proves to be effective.
It is estimated that as soon as the new clearing system is put into operation checks upon
about 15,000 national banks, State banks, and
trust companies throughout the United States
can be handled by the Federal Reserve Banks
at par, subject to the small service charge above
referred to; and as a minority of the banks will
find it difficult to retain much of their good
business when checks drawn upon them are at
a discount while checks drawn upon the majority of banks can circulate at par, it is thought
that in the near future checks upon practically
all banks throughout the United States can be
handled at par hj Federal Reserve Banks.
Many banks have found it necessary hitherto
to scatter their available funds by maintaining
balances with a number of correspondents for
exchange purposes, or in order to control checks
drawn upon themselves.
After November 16, 1917, no bank balances
will be available as reserve for national banks




268

except balances in Federal Reserve Banks,
and therefore after that time any necessity to
maintain nonreserve balances with correspondents, either for exchange purposes or in order
to obtain collection facilities, would be deemed
in many cases a great hardship. It is believed
that in numerous instances banks will find it
expedient to concentrate their balances and to
close many of the accounts which they now
carry with other banks, and that a system
which will enable them to send all of their
checks on other banks to the Federal Reserve
Banks for exchange purposes or as an offset
against checks on themselves forwarded by the
Federal Reserve Bank, will, in course of time,
come to be appreciated as a convenience. The
release of funds heretofore tied up in accounts
carried with other banks and their employment
at higher rates of interest in commercial loans,
should offset to a great degree the prospective
loss of exchange profits which is at the present
time looked upon with apprehension by some
of the banks.
Replying to an inquiry as to whether the
proposed clearing and collection plan was
mandatory, Gov. Hamlin sent, on May 12, the
following telegram:
No compulsion on member banks to collect
any checks through Federal Reserve Bank.
Can use present correspondents if preferred.
Only requirement is that member banks must
remit without deduction in funds satisfactory to
Federal Reserve Bank for checks on them sent
them for collection by Federal Reserve Bank.
Whenever banks unable to offset by remitting
checks, lawful money or Federal Reserve notes
may be remitted at expense of Federal Reserve
Bank.
In reply to another inquiry the following
explanation was made:
In answer to several inquiries inclosed with
your letter I beg to say that there is no intention on the part of the Board to compel country
banks to do exchange business at a loss. If
we correctly understand the law, it contemplates:
(1) That the Federal Reserve Banks, in view
of taking over the reserves formerly held in
reserve centers, should also take over the duty
of acting as clearing houses for their members,

264

FEDERAL BESEBVE BULLETIN.

and that they should perform this service at
cost.
(2) There is no obligation on any bank to use
the facilities of the Federal Reserve Bank for
the clearing or collection of checks that it may
receive from its customers, and it will only be
charged for such checks as it sends for collection the bare cost of collection, which is now
estimated at 1J cents per item. However,
every member bank is under the obligation
of meeting at par at its own counter any checks
sent in by other member banks and drawn
against it.
(3) Under these rules a member bank is not
put to any expense of shipping currency, because, if it has no offsetting checks to remit,
it must send exchange or currency, but, in
the latter case, only at the expense of the
Federal Reserve Bank.
(4) The Federal Reserve Board has not yet
laid down any rule as to what charges a bank
may make against its customers, but there is
no intention at all that a member bank shall
collect its customers' checks at a loss to itself.
If, however, we are able to greatly reduce the
cost to each member bank of collecting its
items, we believe it is our duty to see that the
benefit of that reduced cost shall inure to the
customer, and that he shall have the benefit
of this service at approximately the total net
cost. However, it is not proposed in this
connection to undertake to regulate charges
made by member banks for the collection of
drafts, nor upon commercial bills of exchange
including those drawn against cotton, grain,
etc., for the reason that the Board has assumed
that the language of the act specifically refers
only to check clearing, and not to the collection
of bills, notes, drafts, etc.
Wisconsin Petition Denied.

After a full investigation, the Federal Reserve Board has reached the conclusion that
there is no present necessity for a transfer of
any of the members bank in the State of Wisconsin from the Federal Reserve District of
Minneapolis to the Federal Reserve District of
Chicago. The question was raised in a petition submitted by certain Wisconsin banks
who argued that their natural gateway was
Chicago rather than Minneapolis. In an order
entered by the Federal Reserve Board on May
25 the petition is dismissed without prejudice




JUNE 1, 1916.

to the rights of the signers thereof to file an
amended petition at a later date. The order
follows:
Upon consideration of the petition of certain
banks in Wisconsin that the geographical
limits of districts Nos. 7 and 9 be modified so
as to include in districts No. 7 a part of the territory now included in district No. 9, and
After a full investigation of the matter the
Federal Reserve Board has arrived at the conclusion that there is no present necessity for
any change in the geographical limits of the
said districts Nos. 7 and 9 at this time.
It is ordered that said petition be dismissed
without prejudice to the rights of the signers
to file an amended petition at a later date.
In a letter sent out by order of the Board to
all parties in interest, it was stated that the
Board had reached the conclusion that it would
not be justified in making any alterations-in
the two districts at this time. If future developments should indicate necessity for a change,
it was stated that at a later date consideration
would again be given to the matter. The letter
went on to say that the Board was hopeful that
results under thfe new clearing system would
make a transfer unnecessary. Attention was
particularly called in the letter to the fact that
if the Board had granted the petition as filed,
those banks located in that portion of the
Minneapolis district embraced within the Upper
Peninsula of Michigan would have been isolated and cut off from the rest of the district.
This fact, it was pointed out, would have to be
taken into consideration if, at some future
date, an amended petition were filed for modification of the district lines.
Sale of Bonds Through Treasurer of United
States.

Section 18 of the Federal Reserve Act authorizes national banks desiring to retire their circulation to file an application with the Treasurer of the United States to sell the United
States bonds securing the circulation to be retired. It is provided that bonds offered for
sale in this manner shall be purchased by the
various Federal Reserve Banks in a sum not to

exceed in the aggregate $25,000,000 in any one
year. The Act provides, however, that Federal
Reserve Banks may also buy United States
bonds in the open market, and that bonds
bought in that manner shall be deducted from
the amount which each bank may be required
to buy from member banks through the Treasurer.
Inasmuch, therefore, as the 12 Federal Reserve Banks have already bought in the open
market more than $25,000,000 of bonds bearing
the circulation privilege, they cannot, under
the terms of the law, be required to buy any
more of such bonds through the Treasurer dururer during this calendar year.
The Federal Reserve Board suggests, therefore, that member banks should not file any
more applications with the Treasurer for the
sale of their bonds during the calendar year of
1916.
It is proper to state, however, that the fact
that Federal Reserve Banks can not be required
to purchase any more United States bonds from
member banks in that manner during 1916 does
not in any way affect their right to purchase
such bonds, to any extent they deem advisable,
in the open market whether from member
banks or otherwise.

Acceptances to 100 Per Cent.
Since the last list of banks authorized to
accept drafts or bills of exchange up to 100 per
cent of their capital and surplus under the
Federal Reserve Act was printed the following
banks have been granted this privilege:
National City Bank, New York City; National
Bank of Commerce, New York City; Merchants National Bank, Worcester, Mass.; Old
Colony Trust Co., Boston, Mass.; Harriman
National Bank, New York City.
All member banks may, without special permission, accept to 50 per cent of their capital
and surplus.




43265—16

265

FEDERAL RESERVE BULLETIN.

JUNE 1,1916.

2

New National Bank Charters.
NET INCREASES IN CAPITALIZATION — PEEIOD
NOVEMBER 16, 1914, TO DECEMBER 31, 1915.

Increases and reductions in the number of
national banks and the capital of national
banks during the period from November 16,
1914, date of the inauguration of the Federal
Reserve System, to December 31, 1915, were:
Banks.

New charters issued to.
With capital of
Increase of capital approved for
With new capital of

155
$9,974,500
104
14,797,700

Aggregate number of new charters and
banks increasing capital
259
With aggregate of new capital authorized
24,772,200
Number of banks liquidating (other than
those consolidating with other national
banks)
56
Capital of same banks
5,125,000
Number of banks reducing capital
20
Reduction of capital
2,070,000
Total number of banks going into liquidation or reducing capital (other than those
consolidating with other national banks) 76
Aggregate capital reduction
7,195,000
The foregoing statement shows the aggregate of
increased capital for the period was
24,772,200
Against this there was a reduction of capital
owing to liquidations (other than for consolidation with other national banks) and
reductions of capital of
. . . . 7,195,000
Net increase

17,577,200

During this period there were 21 national
banks with an aggregate capital of $2,210,000
placed in the hands of receivers, and 6 national
banks with an aggregate capital of $450,000
were restored to solvency and reopened.
PERIOD JAN. 1, 1916, TO MAY 26, 1916.

The Comptroller of the Currency reports the
following increases and reductions in the number of national banks, and the capital of na-

266

FEDEEAL RESEBVE BULLETIN.

JUNE 1, 1916.

tional banks during the period from January 1, April 9; 1913, so that the procedure of the department might conform to the Federal Reserve
1916, to May 26, 1916:
Banks.
Act. A letter recently sent out conveying this
New charters issued to
49
information to the Federal Reserve Bank makWith capital of
$2,555,000
ing the inquiry is given below:
Increase of capital approved for ... 50
With new capital of....
3,747, 500
With further reference to the subject of your
letter of March 30 calling the Board's attention
Aggregate number of new charters and
to a ruling of the Interior Department of April
banks increasing capital
99
9, 1913, under which no bank that rediscounted
With aggregate of new capital authorized^. .'
6, 302? 500 any of its paper would be eligible as a depositary for Indian funds, I beg to advise you uthat
Number of banks liquidating (other
the Interior Department informs me that the
than those consolidating with other
rediscount feature of the Federal Reserve Act
national banks)
43
was given particular consideration over a year
Capital of same banks.
3, 773,000 ago by this department in connection with the
Number of banks reducing capital
8
rule relating to borrowed money, and as a result
Reduction of capital
287, 500 the rule was discontinued;" and that" no bank
is now rejected as a depositary simply because
Total number of banks going into liqit has borrowed money, but any applicant bank
uidation or reducing capital (other
whose borrowings appear excessive is expected
than those consolidating with other
to furnish a satisfactory explanation of the
national banks)
51
necessities therefor.77
Aggregate capital reduction
4,060,500
I trust that this disposition of the matter will
be satisfactory to you and to any of your memThe foregoing statement shows the aggregate of
ber banks which felt themselves under a disaincreased capital for the period was
6,302, 500 bility in dealing with their Federal Reserve
Against this there was a reduction of capital
Bank because of the ruling of the Interior Deowing to liquidations (other than for consolipartment promulgated in 1913.
dation with other national banks) and reductions of capital of
4,060,500
Net increase

2,242,000

During this period there were 5 national
banks with an aggregate capital of $400,000
placed in the hands of receivers; and 2 national
banks with an aggregate capital of $80,000
were restored to solvency and reopened.

Fiduciary Powers.
Applications from the following banks
permission to act under section 11 (k) of
Federal Reserve Act have been approved by
Federal Reserve Board since the issue of
May Bulletin, as follows:

for
the
the
the

DISTRICT N O . 7.

Rediscounts by Depositaries of Indian Funds.

Trustee, executor, administrator, and registrar of stocks

and bonds:
Answering an inquiry submitted by one of
Cedar Rapids National Bank, Cedar Rapids, Iowa.
the Federal Reserve Banks, the Department of
the Interior has informed the Federal Reserve
DISTRICT NO. 10.
Board that no bank is rejected as a depositary
for Indian funds simply because it has borrowed Trustee, executor, administrator, and registrar of stocks
money in the form of rediscounts. It appears and bonds:
National Bank of Sabetha, Sabetha, Kans.
that a modification of the ruling of the Interior Trustee, executor, and administrator:
Department in this connection was made on
Exchange National Bank, Colorado Springs, Colo.




JUNE 1,1916.

FEDERAL RESERVE

267

BULLETIN.

offset by-.substantial improvement in all other
districts. Although April failures showed an
Additions to and withdrawals from the
increase of four as compared with January in
intradistrict clearing system since the publicathe tenth district, the contraction in the retion of lists in previous issues of the Bulletin
maining .eleven districts was so pronounced
are as follows:
that the falling off in the total for April from
DISTRICT NO. 5.
January was 610.
Withdrawal:
Liabilities, which are of less relative imporUnion National Bank, Columbia, S. C.
tance than numbers, owing to the fact that
DISTRICT NO. 6.
they may be considerably expanded by a few
Withdrawal:
First National Bank, Cornelia, Ga.
large failures, show April's total exceeding
that of January in the first, third, seventh,
DISTRICT No. 7.
Additions:
and tenth districts. The very marked imWaxikegan National Bank, Waukegan, 111.
provement in the second district alone more
State National Bank, Mattoon, 111.
than counterbalanced these figures, and there
DISTRICT NO. 8.
were also extremely favorable comparisons
Addition:
made by the remaining districts. The figures
First National Bank, Newton, 111.
in detail follow:
Withdrawal:
Intradistrict Clearing System.

First National Bank, Mayfield, Ky.
January.

Business Failures* by Reserve Districts.
Commercial failures during the first four
months of 1916 in the 12 Federal Reserve
districts in which they occurred, as compiled
from the records of R. G. Dun &-.Co., indicate that improvement has been progressive,
month by month, and remarkably uniform.
The total number of suspensions in all *disstricts in January numbered 2,009; in February, which was a short month, 1,688; in
March, 1,690, and in April, 1,399, while the
amounts involved were, respectively, $25,863,286, $18,744,165, $16,885,295, and $18,382,637.
Examination of the different districts by
months shows that improvement was general,
for while the number was larger by two in
March than in February, owing to increases
in the first, second, sixth, seventh, and twelfth
districts, the liabilities were smaller in every
instance except in the tenth and twelfth districts. While there were two more failures in
the ninth district during April than in March,
ten more in the tenth and eight more in the
eleventh, these increases were far more than




February.

Districts.
Number. Liabilities. Number. Liabilities.
First
Second
Third
Fourth
Fifth
Sixth
Seventh
Eighth .
Ninth
Tenth
. . .
Eleventh
Twelfth

191
329
120
183
171
186
209
141
66
75
129
229

137
298
138
127
139
157
185
130
62
65
88
162

$1,348,200
4,194,990
1,237,250
894,500
1,138,600
2,224,850
2,253,800
978,075
527,670
558,010
1,212,720
2,177,500

2,009
2,848
1,857
1,814

Total, 1916
1915.
1914....
1913....

$1,645,500
8,810,900
988,240
1,442,950
1,427,400
2,490,200
2,986,600
1,475,000
988,400
350,900
1,292.696
1,984; 500
25,863,286
49,640,575
39,374,347
22,972,769

1,688
2,278
1,505
1,454

18,744,165
32,404,630
22,354,193
28,141,258

March.

April.

Districts.
Number. Liabilities. Number. Liabilities.
First
Second
Third
Fourth
Fifth
Sixth
Seventh
Eighth
Ninth
Tenth
Eleventh
Twelfth
Total, 1916
1915
1914
1913

. .

162
318
103
126
113
167
193
121
52
69
72
194

$1,126,319
3,762,231
1,054,934
856,829
890,399
2,192,100
1,857,144
738,291
478,213
905,785
803,714
2,221,336

117
243
97
90
85
163
173
64
56
79
80
152

$1,865,387
4,112,886
1,883,363
1,145,629
811,502
1,596,744
3,477,658
548,185
407,975
645,268
1,023,040
865,000

1,690
2,090
1,464
1,190

16,885,295
23,658,130
21,493,28(3
25,718,250

1,399
2,063
1,336
1,314

18,382,637
43,517,870
20,549,144
18,445,355

RESERVE BULLETIN.

GOLD SETTLEMENT FUND.

Since the gold-settlement fund has now been
in operation for one year, it may be interesting
to review briefly the more important features
of its operations. The primary object for
which the fund was established was the settlement of obligations arising among the 12 Federal Keserve Banks, and the extent of its operations of this kind may be measured by the
total amount of weekly clearings and transfers.
These have amounted since May 20, 1915, to
$2,178,240,000, almost half of this amount having been handled since the beginning of the
present year. The weekly settlements and
transfers which at first averaged approximately
$20,000,000, have steadily increased. For each
of the last four weeks they exceeded $60,000,000
and for the week ending May 25 were close to
$80,000,000. It is expected that with the more
active clearing operations by Federal Reserve
Banks, which are to begin July 15, the amounts
settled each week will in all probability be considerably increased.
The most important function of the fund has
been to obviate unnecessary shipments of gold
currency between the various sections of the
country. The first step in such a process is,
of course, to offset and cancel by clearing as
many obligations and of as large amount as
possible, and this the Federal Eeserve Banks
have accomplished and will to a still greater
degree accomplish through the gold settlement
fund. The result of the clearing process thus
far has been that for $2,178,240,000 of obligations settled, there has remained only a net
balance of $144,288,000, or 6.62 per cent, to
be paid by transfer of ownership of the gold
certificates held. Not only has the net amount
necessary to be covered by payment of gold
or its equivalent been minimized by the clear-




JUNE 1,1916.

ing operations of the fund, but the actual shipment of even the relatively small balance has
been entirely avoided. With the aid and cooperation of the Treasury Department, it has
been possible to have any Federal Reserve
Bank becoming debtor to another bank merely
make deposit with the nearest subtreasury
(six Federal Reserve cities have sub treasuries),
and gold certificates have been issued at Washington payable to the order of the Federal
Reserve Board, to be held in the gold settlement fund. On the other hand, whenever a
Federal Reserve Bank has need of funds to its
credit the operation has been reversed and
payment made by the nearest subtreasury.
Such withdrawals have been relatively small
in volume and the major portion of the gold
paid into the fund has been permitted to
remain.
Under the abnormal conditions prevalent
during the past year seasonal movements of
currency in the United States have been much
deranged and the usual ebb and flow has not
taken place. Large imports of gold have
reached New York City, very substantial portions of which had as their ultimate destination
the various industrial and agricultural centers,
from which had gone the exports of commodities. Through this movement and through
the call on New York City banks for funds to
make payments due from member banks
throughout the country on account of installments of reserve deposits with the Federal
Reserve Banks, a condition was created which,
without the gold settlement fund, would undoubtedly have occasioned large and expensive
domestic gold shipments from New York.
Through the operation of the gold settlement
fund the same end has been accomplished at
almost negligible expense by the Federal Reserve Bank of New York depositing gold with

269

FEDERAL BESEBVE BULLETIN.

JUNE 1, 1916.

the Subtreasury for credit in the gold settle- Amount of clearings and. transfers, Federal Reserve Banks,
from Apr. 21, 1916, to May 25, 1916, inclusive.
ment fund and transferring the credit thus
Total
acquired to other Federal Reserve Banks.
clearings. Balances. Transfers.
During the year almost $126,000,000 has in
this way been transferred from New York to Settlement of—
Apr. 27, 1916
$56,252,000 $4,027,000 ,16,204,000
other centers.
May 4,1916
65,804,000 5,905,000
2,974,000
May 11,1916
64,120,000 4,632,000
1,316,000
May 18,1916
An important service rendered to Federal
66,489,000 11,879,000
4,090,000
Mav 25, 1916
77,816,000 14,571,000
2,000,000
Reserve Banks, and through them to member
Total
330,481,000 31,014,000 16,584,000
banks, has been the making of deposits with Previously reported
795,110,000 90,116,000 29,857,000
the Treasurer of the United States for various
Total since Jan. 1,1916... 1,125,591,000 121,130,000 46,441,000
purposes, particularly for the release and transTotal for 1915
1,052,649,000
fer to Federal Reserve Banks of United States
Total for period May 20,
1915, to May 25,1916.... 2,178,240,000
bonds securing national bank-note circulation.
Changes in ownership of gold.
To Apr. 20,1916.

Federal Reserve Bank of—
Decrease.

Boston,
New York....
Philadelphia.
Cleveland
Richmond
Atlanta
Chicago
St. Louis

Increase.

$3,887,000

9,659,000
6,243,000
8,804,000
15,183,000
19,751,000

$9,617,000
23,427,000
4,510,000
6,569,000
11,729,000
2,489,000
12,759,000
5,219,000
4,643,000
3,221,500
9,515,500
'-4,389,000

$11,881,000
2,045,000
13,381,000
11,217,000
13,392,000
4,714,000
877,000
4,419,000
4,711,000
7,537,500
9,032,500
6,103,000

89,310,000

89,310,000

18,030,000
6,159,000
11,209,000
12,099,000
6,451,000

Kansas City...
Dallas
San Francisco.
Total.

Balance to
credit Apr.
20,1916, plus
Balance
net deposits May 25,1916.
of gold, since
that date.

111,024,000

$104,573,000

111,024,000

Total change from May 20,
1915, to May 25,1916.2

From Apr. 21,1916, to May 25,1916.*

Decrease.

$21,382,000

11,882,000
800,000

Increase.

Decrease.

$2,264,000

$6,151,000
$125,955,000
26,901,000
10,807,000
12,872,000
14,324,000

8,871,000
4,648,000
1,663,000
2,225,000
18,333,000

8,859,000
6,311,000
13,120,000
14,700,000
30,243,000

68,000
4,316,000

483,000
10,492,000
34,547,000

Increase.

34,547,000

144,288,000

144,288,000

1 Changes in ownership of gold during period Apr. 21,1916, to May 25,1916, equal 9.95 per cent of obligations settled.
2 Total changes in ownership of gold equal 6.62 per cent of obligations settled.
3 Withdrawals have exceeded balance and deposits.

Summary of transactions, Apr. 21y 1916, to May 25, 1916.

Federal Reserve
Bank of—

Balance
last
statement,
Apr. 20,
1916.

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

$9,617,000
3,427,000
6,240,000
8,159,000
10,679,000
2,489,000
9,659,000
5,039,000
4.643,000
3,701,500
9,715,500
3,141,000

Total

76,510,000




Withdrawn.

$2,000,000
460,000

Deposited.

Dobit.

$1,000,000

'"mo',bbo

"""250,'666'
970,000
1,500,000
4,000
500,000
1,230,000
750,000

200,000
3,800,000
6,460,000

Settlement of Apr. 27,1916.

Transfers.

Gold.

110,000

6,204,000

Credit.

Net
debits.

Total
debits.

Total
credits.

Net
credits.

Apr. 27,
1916, balance m
fund after
clearing.

$593,000 $6,861,000 $6,268,000
540,000 13,877,000 13,337,000
7,502,000 7,784,000
1,337,000 1,604,000
'"i,*i98,"666" 8,040,000 6,842,000
1,203,000 1,751,000
42,000
7,536,000
784,000 1,379,000 8,915,000
290,000 6,463,000 6,173,000
326,000
99,000
126,000
27,000
1,639,000 2,743,000
466,000
142,000
147,000 1,649,000
"i," 666 ,'666'

1,104,000
324,000
1,502,000

$9,774,000
4,189,000
5,522,000
7,716,000
8,621,000
3,079,000
7,564,000
5,075,000
4,612,000
4,305,500
8,609,500
1,093,000

56,252,000

4,027,000

70,160,000

$750,000
2,302,000
1,000,000

6,204,000

4,027,000

56,252,000

$282,000
267,000
548,000

270

FEDEEAL RESERVE BULLETIN,

JUNE 1,1916.

Summary of transactions, April 21, 1916, to May 25, 1916—Continued.
Balance
last
statement,
Apr. 27,
1916.

Federal Reserve
Bank o—
f

$9,774,000
Boston
4,189,000
New York
5,522,000
Philadelphia
7,716,000
Cleveland.
Richmond.. I..."....-. 8,621,000
3,079,000
Atlanta
7,564,000
Chicago
5,075,000
St. Louis
4,612,000
Minneapolis
4,305,500
Kansas City
8,609,500
Dallas
1,093,000
San Francisco
70,160,000

Total

Balance
Federal Reserve * last statement May
Bank o—
f
4,1916.
"Boston
New York
Philadelphia...
Cleveland
Richmond
Chicago
St. Louis
IVTiTiTiGa D o l i s

Kansas City
Dallas
San Francisco

$10,218,000
8,502,000
6,386,000
6,884,000
9,703,000
2,929,000
3,371,000
4,922,000
4 750 000
3,693,500
8,617,500
. . . 2,764,000
72,740,000

Total

Balance
last statement May
11,1916.

Federal Reserve
-Bank o—
f

TWinnfiSiD oils

Kansas City
Dallas
San Francisco
Total.

71,360,000

Federal Reserve
Bank of—

Total




Withdrawn.

$1,030,000
100,000
100,000

.

Balance
last statement May
18,1916.
$11,958,000
4,093,000
10,974,000
7,847,000
11,233,000
3,475,000
3,823,000
2,981,000
4,692,000
4,752,500
8,420,500
3,401,000
77,650,000

Debit.

Credit.

$5,000,000
130,000

$1,400,000

$1,050,000
24,000

260,000

500,000

1,000,000

500,000
200,000

270,000

30,000

2,340,000
3,840,000

6,420,000

Gold.
Withdrawn.

374,000
2,974,000

Debit.

""$4i6,"666*

100,000
240,000

1,790,000

410,000

Gold.

5,905,000. 65,804,000

Credit.

140,000
240,000
1,000,000

"*i*356*666*

60*666"
6,440,000

4,090,000

71,360,000

64,120,000

Debit.

395,000
354,000
730,000

460,000

"""266," 666"

50,000
11,840,000

2,000,000

Credit.

11,879,000

Total
debits.

4,632,000

Total
credits.

Net
credits.

Settlement of May 25,1916.
Net
debits.

Total
debits.

$77,000 $7,941,000
10,448,000 23,090,000
8,752,000
2,034,000
8,279,000
2,103,000
15,090,000
4,046,000
7,776,000
56,000
2,071,000
1,800,000
534,000
90,000
14,571,000

May 18,
1916, balance in
fund after
clearing.

$5,497,000 $7,286,000 $,1789,000 $11,958,000
22,709,000 12,309,000
4,093,000
8,730,000 11,494,000 2,764,000
10,974,000
7,847,000
i,i8o;ooo 3,510,000 2,330,000
8,035,000 > 9,376,000 1,341,000 11,233,000
1,977,000
3,475,000
600,000
1,377,000
3,823,000
10,614,000 10,219,000
2,981,000
5,317,000 4,963,000
182,000
4,692,000
43,000
139,000
4,752,500
912,000
1,622,000 2,534,000
468,000
8,420,500
1,198,000 2,171,000
3,401,000
2,100,000
71,000
66,489,000 66,489,000 11,879,000
77,650,000

$200,000

2,000,000

64,120,000

Settlement of May 18,1916.

Transfers.
Deposited.

Net
credits.

May 11,
1916, balance in
fund after
clearing.

4,632,000

$i6,'466,'666"

4,090,000

Total
credits,

72,740,000

$9,939,000
7,673,000
7,530,000
5,517,000
10,772,000
2,875,000
1,718,000
4,685,000
4,649,000
4,340,500
9,190,500
2,471,000

Net
debits.

1,500,000

5,905,000

$279,000 $8,717,000 $8,438,000
1,929,000 17,283,000 15,354,000
8,180,000 9,324,000 $1,144,000
1,562,000 1.245,000
317,000
7,782,000 8;541,000
759,000
1,900,000 2,029,000
129,000
1,686,000 10,736,000 9,050,000
320,000 5,833,000 5,513,000
205.000
104,000
101,000
1,574', 000 2,461,000
887,000
218,000
824,000
606,000
130,000 1,237,000
1,107,000

Credit.

500,000
40,000
1,230,000

1,100,000
280,000

180,000

1,316,000

Total
debits.

Net
debits.

$970,000

$10,000,000 •$1,800,000
150,000
80,000

33,000
183,000

65,804,000

Settlement of May 11,1916.

$230,000
1,820,000
540,000

Debit.

'§5,*666,"666*

Gold.
Withdrawn.

$337,000

Transfers.
Deposited.

150,000

1,316,000

Net
credits.

1,400,000

33,000

"i," 4o6," 666"

Total
credits.

2,974,000

""'566; 666'

$1,000,000
183 000

Total
debits.

May .4,
1916, balance in
fund after
clearing.

$444,000 $10,218,000
$6,688,000 $7,132,000
8,502,000
15,593,000 15,256,000
6,386,000
710,000
9,653,000 10,363,000
6,884,000
1,710,000
198,000
'1,512', 000
9,703,000
1,422,000
8,213,000 9,635,000
2,209,000
2,929,000
150,000 2,359,000
7,776,000
3,371,000
4,693,000 12,469,000
••4,922,000
353,000 6,640,000 6,287;000
204,000
. 66.000
4,750,000
138,000
3,693,500
372,000 2,151/, 000 •1,779,000
711,000
329,000
8,617,500
382,000
131,000 2,742,000 . 2,611,000
2,764,000

$1,100,000

Withdrawn.

Net
debits.

Transfers.
Deposited.

$50,000
100,000

Settlement of May 4,1916.

Transfers.

Deposited.

$9,939,000
7,673,000 : : : . : : : . : : .
7,530,000
5,517 000
$150,000
10,772,000
2,875,000
1,718,000
4,685,000
4,649 000
4,340,500 — ••
9,190,500
2,471,000

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta.
St. Louis..

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

Gold.

77,816,000

Total
credits.

Net
credits.

May 25,
1916, balance in
fund after
clearing.

$7,864,000
$11,881,000
12,642,000
2,045,000
11,159,000 $2,407,000 13,381,000
5,454,000 3,420,000 11,217,000
10,058,000 1,779,000 13,392,000
3,342,000 1,239,000
4,714,000
11,044,000
877,000
8,934,000 "l," 158," 666" 4,419,000
75,000
4,711,000
19,000
3,056,000
7,537,500
985,000
•1,346,000
9,032,500
812,000
2,842,000 2,752,000
6,103,000
77,816,000

14,571,000

89,310,000

271

FEDERAL RESERVE BULLETIN".

JUNE 1,1916.

Federal Reserve Agents' Fund—Summary of transactions, Apr. 21, 1916, to May 25, 1916.
Week ending Apr. 27,1916.
Apr. 20,
1916,
balance.

Federal Reserve Agent at—

$3,240,000
6,000,<
000
13,950,1
,000
3,410,1
000
4,130,000
2,350,000
,000
3,900,<
,000
l,450,(
10,570,000

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

i 49,000,000

Withdrawn.

$200,000
500,000

Deposited.

Balance.

Week ending May 4,
1916.
Withdrawn.

Balance.

$3,240,000 [ $130,000
5,800,000
13,450,000
3,410,000
4,130,000
*i66,"666" |
2,350,000
3,900,000
$180,000 1,630,000
50,000
800,000 11,370,000

I

700,000

Week ending May 11,1916.

980,000 49,280,000
Week ending May 18,
1916.

280,000

$3,110,000
5,800,000
13,450,000
3,410,000
4,030,000
2,350,000
3,900,000
1,580,000
11,370,000
49,000,000

Week ending May 25,
1916.

Federal Reserve Agent at—
Withdrawn.
Philadelphia...
Richmond
Atlanta
Chicago
St. Louis
Minneapolis....
Kansas City....
Dallas
San Francisco..
Total..




Deposited.

,$200,000
170,000

$400,000
370,000

Balance.
$2,910,000
5,630,000
13,450,000
3,410,000
4,030,000*
2,350,000
3,900,000
1,580,000
11,770,000

400,000 49,030,000

Withdrawn.

Balance.

$140,000 $2,770,000
5,630,000
13,450,000
3,410,000
4,030,000
2,350,000
3,900,000
100,000 1,480,000
210,000 11,560,000

Withdrawn.

$430,000
100,000
280,000
200,000

450,000 48,580,000 ! 1,010,000

Balance.
$2,770,000
5,200,000
13,450,000
3,310,000
3,750,000
2,350,000
3,700,000
1,480,000
11,560,000
47,570,000

272

FEDEEAL RESERVE BULLETIN.

JUNE 1, 1916.

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

Your letter of April 26, asking information
in connection with the Federal Reserve Act, is
received. Answers to your questions are given
below:
1. "When a merchant presents his note to
borrow upon (say for $1,000 at 7 per cent), ordinarily what discount will be taken, or what
amount of this $1,000 will he receive?"
If for two months, the discount would be
$11.67, and the merchant would therefore
receive $988.33. If for three months, the
dicount would be $17.50, and the merchant
would receive $982.50.
2. "If the member bank then sends this note
to the Federal Reserve Bank, what per cent of
this $1,000 does it receive!"
The face of the note less the discount at the
rate and for the time specified.
3. "When this collateral is turned in for currency, does the Government give its face value,
and does the Government receive any compensation?"
The Government gives its face value and at
present receives no compensation. The Federal Reserve Board may, in its discretion, place
a tax on note circulation but has not done so
up to the present time. Such a tax, if imposed
now, would fall upon the Government of the
United States for the reason that the law provides that after the annual dividend of 6 per
cent is paid the net earnings shall be paid to
the United States as a franchise tax, except
that one-half of such earnings shall be paid
into a surplus fund until that fund amounts to
40 per cent of the paid-in capital of the bank.
The probable effect of such a tax would be to
increase rates of interest charged to borrowers.
4. "About what interest does the Federal
Reserve Bank make on the above transaction
and to whom does it go."
The rates of discount at the several Federal
Reserve Banks may be found on page 216 of
the Federal Reserve Bulletin for May, copy of
which is being mailed to you.
For your general information it may be
stated that there are 12 Federal Reserve Banks
in the United States, all of which rediscount




the paper of their member banks. These memner banks are all national banks and such State
banks as may have joined the system. I have
had sent to you, in addition to the Federal Reserve Bulletin, a copy of the annual report of
the Federal Reserve Board for 1915 and reguations showing the different kinds of notes
which a member bank may send to the Federal
Reserve Bank of its district for rediscount.
If a national bank in your city has paper
which meets the requirements of the circulars
sent you, it may send this paper to the Federal Reserve Bank for the district and have it
rediscounted at the rates which you find for
that bank in the Federal Reserve Bulletin.
MAY

2, 1916.

Loans on Farm Land.

Your letter of April 28, asking whether you
can obtain a loan on farm la,nd through the
Federal Reserve Banks, is received.
The 12 Federal Reserve Banks do not
make loans directly to individuals but rediscount the paper of their member banks, which
are all national banks and such State banks as
may have joined the system. Under section
24 of the Federal Reserve Act, copy of which
is being sent you, any national bank not situated in New York, Chicago, or St. Louis may
make loans secured by improved, unencumbered farm land for not more than five years
and not to exceed 50 per cent of the value of
the property offered. Unlike short-term commercial paper, such loans as are described in
section 24 can not be rediscounted at any of
the 12 Federal Reserve Banks. In its
annual report to Congress for 1915 the Federal
Reserve Board recommended that the provisions of section 24 be extended and broadened.
You will find this provision on page 22 of the
report, copy of which is being sent you under
separate cover. Congress has not yet acted
upon this recommendation, but it is hoped that
it will do so before adjournment.
There are also inclosed for your information
in this connection copies of circulars issued by
the Federal Reserve fioard, from which you will
find that notes of certain kinds taken by
national banks, running for not more than
90 days in some cases and 6 months in
others, may be rediscounted at Federal Reserve
Banks. That is to say, national banks making
such loans as the circulars prescribe may send
the notes to Federal Reserve Banks for rediscount and receive the face of the note, less the

FEDERAL RESERVE BULLETIN.

JUNE 1,1916.

discount, and be able to loan this money again.
You will be especially interested in the circular
on six months' agricultural paper, from which
you will see that national banks can rediscount
with Federal Reserve Banks notes issued for
agricultural purposes based on live stock for
breeding/raising, or fattening.
MAY 2, 1916.

Tax OB Federal Reserve Notes.

Your letter of April 20 was duly received and
referred to the Board for attention.
In reply you are advised that in the opinion
of counsel a discretion is vested in the Board as
to what amount of interest, if any, shall be
charged Federal Reserve Banks for the use of
Federal Reserve notes, and that in the exercise
of its discretion the Board must take into consideration the purpose and intent of Congress.
It will be recalled that the banks pay all expenses of the preparation, issue, and redemption of these notes; that unlike the tax on
national-bank-note circulation the interest collected is not used for the purpose of defraying
any of the incidental expenses; that after the
payment of the expenses of the Federal Reserve
Banks and the cumulative dividends on their
stock, and after appropriating a certain amount
to the surplus account of such banks, all of the
earnings are paid to the Government in lieu of
franchise and other taxes. To impose a tax,
therefore, on Federal Reserve notes merely as
a means of raising revenue for the Government
would not in the end increase the Government's
revenue since it would merely increase the expenses of the banks and would thus deplete the
amount that the Government receives from the
earnings over and above the dividends on the
stock.
One of the primary purposes of this provision
was to enable the Federal Reserve Board to control the volume of notes of this character placed
in circulation. In other words, if these notes
become redundant the Board can, by imposing
an interest charge or by increasing a charge
already imposed, force a retirement and so furnish the desired elasticity to our currency. It
has not been deemed necessary by the Board to
force a retirement of these notes since the
amount in circulation is no larger than is
needed for the volume of business now being
done by the banks. A nominal rate of interest,
therefore, would serve no useful purpose and
in the opinion of counsel is not required under
the law, nor would such a noniinal charge seem
to be within the purpose and intent of Congress.
APRIL 28,




1916.

43265—16

3

273

Real Estate Loans.

In reply to your letter of May 6, you are
advised that section 24 of the Federal Reserve
Act authorizes any national bank not situated
in a central reserve city, under certain prescribed
limitations, to make loans secured by improved
and unencumbered farm land situated within its
Federal Reserve district.
There is no provision which authorizes a
national bank to loan on real estate of any
other character, such as village estate mentioned in your letter. An amendment to this
section, however, has been recently introduced
in Congress which, if passed, will authorize a
national bank not situated in a central reserve
city to make loans, under certain conditions,
secured by any improved and unencumbered
real estate located within 100 miles of such
bank, whether within or without its Federal
Reserve district. This amendment has not as
yet been acted upon by Congress.
MAY 8, 1916.
Federal Reserve Bank Notes.
Federal Reserve bank notes are obligations
of the Federal Reserve Bank by which they
are issued. They are secured by United
States bonds deposited with the Treasurer of
the United States and are issued through the
Comptroller of the Currency under the same
terms and conditions as national-bank notes.
Other than the 5 per cent redemption fund
maintained with the Treasurer of the United
States, no reserve need be maintained against
Federal Reserve bank notes.
Federal Reserve notes, on the other hand,
are obligations of the United States. • They are
issued to the Federal Reserve Banks through
the various Federal Reserve Agents upon the
deposit with such agents of certain classes of
eligible commercial paper as collateral security.
The law requires that Federal Reserve Banks
shall maintain reserves of not less than 40
per cent against Federal Reserve notes in
actual circulation, though the 5 per cent
redemption fund maintained with the Treasurer of the United States for the purpose of
redeeming such notes is counted as part of
that 40 per cent reserve.
These notes also differ in form. In the case
of the Federal Reserve bank note the words
"National currency" are engraved on the top
margin of the face of the note and "Federal
Reserve bank note" on the bottom margin of
the same side of the note. In the case of the
Federal Reserve note the words "Federal
Reserve note" are engraved on the top and
bottom margins of the face of the note.
MAY 12, 1916.

274

FEDERAL RESERVE BULLETIN,

JUNE 1,

1916.

LAW DEPARTMENT.
The following opinion of counsel has been paired capital and surplus of the member bank,
authorized for publication by the Board since whether such paper consists solely of direct
borrowings of the makers or indorsers, or of
the last edition of the Bulletin:
both direct borrowings and discounts of busiLimit on Rediscounts of Commercial or Business Paper. ness paper, or solely of business paper actually
owned oy the indorsers. * * *
While a member bank may acquire commercial or busiThe question which I wish to present to the
ness paper from the same person in excess of 10 per cent Board is: (1) Does the ruling in the May Bulleof its unimpaired capital and surplus (sec. 5200, IT. S.'R. S.), tin referred to determine that a member bank
its Federal Reserve Bank can not rediscount such paper may not extend loans and discounts to a single
bearing the signature or indorsement of the same person borrower exceeding 10 per cent of the unimin excess of that amount (sec. 13, Federal Reserve Act).
paired capital and surplus of the member bank
Section 13 Federal Reserve Act does not amend section provided the discounts are of business paper?
5200 U. S. R. S.
(2) Does the Board hold that the fifth paragraph
of section 13 of the Federal Reserve Act modiMAY 9, 1916.
SIR: In the May issue of the Federal Reserve fies the proviso in section 5200 of the Revised
Statutes ?
Bulletin, volume 2, page 225, the Board pubBoth questions should be answered in the
lished an informal ruling reading in part as
negative.
follows:
In considering these questions it should be
There is no limitation in the law as to the borne in mind that section 5200, Revised
total amount of rediscounts which a member
bank may take from the Federal Reserve Bank. Statutes, relates to the amount that may be
There is," however, a provision in section 13 of loaned to any one person, firm, or corporathe Federal Reserve Act providing that the tion by a national bank, while section 13 of
aggregate of notes bearing the signature or the Federal Reserve Act relates to the amount
indorsement of any one person, corporation, that may be loaned on rediscount by a Federal
etc., rediscounted by the Federal Reserve
Bank for any one bank shall at no time exceed Reserve Bank to a member bank. Section 13
10 per cent of the unimpaired capital and sur- of the Federal Reserve Act does not, therefore,
plus of said bank. This clause ox the Act con- modify or amend in any way section 5200
tains an exception as to the discount of bills of Revised Statutes. Confusion of thought necexchange, but no exception is made as to the essarily results from an attempt to treat these
discount of promissory notes.
If, therefore, any particular paper which you two sections as dealing with the same subject
present for rediscount to the federal Reserve matter.
Bank, either singly or added to the paper of
Under section .5200 Revised Statutes—
the same makers or indorsers which the Federal
The total liabilities to any association of
Reserve Bank has already rediscounted for you, any person * * * for money borrowed
amounts to a total of more than 10 per cent of * * * shall at. no time exceed one-tenth part
the unimpaired capital and surplus of your of the amount of the capital stock of such
bank, the Federal Reserve Bank, under the associations, actually paid in and unimpaired,
clause above quoted, has no authority to and one-tenth part of its unimpaired surplus
rediscount.
fund. * * * But the discount of bills of
In commenting on this ruling the chairman exchange drawn in good faith against actually
of the board of one of the Federal Reserve existing values, and the discount of commercial or business paper actually owned by the
Banks, says:
person negotiating the same shall not be conThe last paragraph of this ruling seems to be sidered as money borrowed.
susceptible of the construction that a member
A member bank may, therefore, acquire from
bank may not rediscount with the Federal
Reserve Bank paper of the same makers or the same person bills of exchange or commerindorsers in excess of 10 per cent of the unim- cial or business paper in excess of 10 per cent




JUNE 1,1916.

FEDERAL RESERVE BULLETIN.

of its capital and surplus. When such bank,
however, after acquiring paper of these two
classes tenders it for rediscount to a Federal
Reserve Bank it is subject to the limitations
imposed by section 13 of the Federal Reserve
Act. This section provides in part that—
The aggregate of such notes and bills bearing the signature or indorsement of any one
person, company, firm, or corporation rediscounted for any one bank shall at no time
exceed 10 pet centum of the unimpaired capital
and surplus of said bank; but this restriction
shall not apply to the discount of bills of exchange drawn in good faith against actually
existing values.
It will be observed that while bills of exchange are expressly excluded from the limitation above quoted, commercial or business
paper is not and the Board is without authority
to except from this provision of section 13
this class of paper. The fact that member
banks may acquire commercial or business
paper in excess of the amount they are authorized to rediscount with Federal Reserve Banks
is not of any special significance. Member
banks are not permitted to rediscount all of
their assets with a Federal Reserve Bank, but
are limited to certain classes of eligible paper.
It is not inconsistent with the general purpose
and intent of the Act therefore that commercial or business paper bearing the signature
or indorsement of any one person, firm, or
corporation should be limited to 10 per cent
of the capital and surplus of the member bank
obtaining the rediscount. On the contrary?
it may be reasonably assumed that Congress
intended to permit a preference to be shown
by Federal Reserve Banks for bills of exchange
drawn against actually existing values as being
self-liquidating to a greater extent than the
ordinary commercial or business paper.
Respectfully,
M. C. ELLIOTT, Counsel.
To Hon. CHARLES S. HAMLIN,




Governor Federal Reserve Board.

275

GENERAL BUSINESS CONDITIONS.

General business and banking conditions reported by Federal Reserve Agents in the 12
Federal Reserve districts as of May 23 or
thereabout indicate, in general, that business
activity in the United States has perhaps
reached the maximum of the present movement. Orders covering factory outputs to the
end of the year at maximum capacity, a more
cautious attitude as to the future, considerable
unrest on the part of labor, even where most
highly compensated, and a slightly less favorable outlook in respect to some of the growing
crops, are the chief contributing reasons given.
On the other hand, more favorable crop conditions are reported in some districts, even
though the spring has been generally very late.
Mines and oil wells are exceedingly active.
Lumber and building show great activity,
although the latter is in some sections somewhat affected by labor conditions.
There is hardly any perceptible hardening
of money rates, and the supply of loanable
funds continues more than ample. Railroad
earnings, where not injuriously affected by congestion at seaports, are generally excellent, and
the only bad signs in this industry are the impending labor difficulties. Post office and
other similar receipts appear to be at a maximum everywhere.
DISTRICT NO. 1—BOSTON,

Unable to gauge the outlook for the future
with any certainty, merchants in many lines
are trying to restrict their advance commitments. Rumors of an early peace, possible
foreign complications, and the Mexican situation, as well as the high cost of raw material
and labor, have all been factors in retarding the
general advance in business activities in this
section during the month of May. In many
lines, however, the advance continues unabated.
This lull is looked upon as temporary and in
many cases is most welcome, giving manuf ac-

276

FEDERAL RESERVE BULLETIN.

turers a chance to get their bearings and buyers a chance to look about before placing new
orders.
Skilled labor is more difficult to obtain, due
to a certain extent to the fact that higher wages
have caused a feeling of unrest. Many are willing to work only part time, or are taking short
vacations. As this condition will probably not
improve with the approach of summer, it also
is an influence in making manufacturers cautious about committing themselves too far.
The older and longer established houses are
carrying on their business with an idea of being
in a strong position at the end of the war and
are endeavoring to prevent overexpansion in
their respective lines. This has a steadying
influence on general business and offsets to a
considerable extent those with perhaps less
foresight and experience.
Money rates remain unchanged, although
money is a trifle less free at the minimum rate
than it was last month. This is in part due to
the reduction of surplus reserves, but more to
the feeling that the trend is toward higher rates.
Call money is 3 per cent; commercial paper
3 to 3^ per cent for short dates, 3 per cent upward for six months, 4 to 4i per cent for a year;
town notes, fall maturities, 2.80 to 3 per cent;
bankers7 acceptances, 90 days, 2 per cent and
upward.
Loans and discounts of the Boston clearinghouse banks on May 20, 1916, show an increase
of $6,189,000 during the. preceding month,
while demand deposits show a decrease of
$963,000 during the same period. The amount
"Due to other banks" on May 20 was $139,631,000 as compared with $144,477,000 on April 15.
The excess reserve of these banks has decreased
from $56,950,000 on Apr^l 15 to $47,944,000 on
May 20.
Exchanges of the Boston clearing house for
the week ending May 20, 1916, were $210,413,870, as compared with $148,390,321 for the corresponding week last year and $219,284,696 for
the week ending April 15, 1916.
Building and engineering operations in New
England from January 1, 1916, to May 17, 1916,




JUNE 1,1916.

amounted to $72,393,000, or about $4,000,000
more than the highest for any corresponding
period in the last fifteen years.
Exports from the port of Boston for April,
1916, were the largest for many years, amounting to $16,496,726, as compared with $11,506,025 for March, 1916, and $10,590,182 for April,
1915. The imports for April, 1916, amounted
to $23,683,251, an increase of $2,232,022 over
March, 1916, and an increase of $5,677,477 as
compared with April, 1915.
Receipts of the Boston post office for April,
1916, show an increase of about $43,000, or 6J
per cent over April, 1915. For the first 15 days
of May receipts were about $32,000, or 10J per
cent over the same period last year.
The B. & M. R. R. reports net operating income, after taxes, for March, 1916, as $929,220,
as compared with $592,344 the corresponding
month last year. The N. Y., N. H. & H. R. R,
reports net operating income, after taxes, for
March, 1916, as $1,338,120, as compared with
$1,578,145 for March, 1915. The decrease in
New Haven net earnings is due to the congestion at seaboard terminals rather than to the
amount of business handled. Gross earnings
for March, 1916, were $700,000 more than for
March, 1915, but in spite of this net operating
income showed a falling off and net corporate
income showed a deficit of $68,604, as compared with a surplus of $264,806 for the same
month last year.
Reports from the boot and shoe industry indicate that business is continuing well above
normal with no indications of any slowing up in
demand. The advance in leather, however, is
causing uneasiness among manufacturers. The
marking up of shoe prices reported last month
has apparently had little effect on new orders.
The demand for wool continues unabated,
and it is reported that abnormal prices are being
paid for the domestic crop now being bought in
the West. The woolen and worsted mills are
feeling a temporary lull in new business, largely
due to the fact that large orders were accepted
at the opening of the present season and now,
between seasons, mills are more anxious to catch

JUNE 1, 1916.

FEDERAL RESERVE BULLETIN,

up on business already taken than to secure
new business.
The cotton-goods market is duller than for
some time. Many manufacturers have enough
advance business to last for many months, and
this is causing prices to hold firm..
The spring has been backward in New England, and this has affected the dry-goods trade.
In spite of the high prices ruling on many kinds
of goods the last few weeks of good weather has
materially helped business.
The bond market is more active, and there is
a good demand for the better class of securitiesDISTRICT NO. 2—NEW YORK.

A continuance of good and very active business is reported by correspondents in all sections of the Federal Reserve district of New
York. Nearly every report refers to the backwardness of the season, the scarcity of materials and labor, difficulties of transportation,
increasing pay rolls, and advancing prices.
Collections are said to be unusually good, except in country places where impassable roads
caused slow payments. Several savings banks
in this district have reported larger net deposits and a better ratio of increase than in the
corresponding period of last year. One large
institution attributes the increase to high
wages.
Wages in general are probably higher than
ever before, yet many strikes occurred during
the month over questions of wages, hours, and
unions. Such acute unrest of many thousands
of workers is causing much concern.
The congestion of export freight is still serious, Railroad cars are not accumulating so
rapidly as was the case a month or two ago,
but embargoes remain on many lines. Shipments are facilitated when shippers furnish assurance to the railways that space on board
ship has been secured and that no delay will
occur in handling the goods at this port.
Freight for local delivery has also been held
up in great quantities on account of the strike
of marine engineers and the shortage of lighters
necessary to move it across the rivers. While




277

the towboats were tied up, it was reported that
50 steamers were thus prevented from discharging their cargoes of import freight.
About one-half of the world's ocean freight
is carried in ordinary times by the British mercantile marine. It has recently been estimated
that 57 per cent of the British tonnage is now
requisitioned or used by the allies for purposes
of the war, leaving only 43 per cent in its
former employment, consequently every shipyard in the United States is working to capacity, with an aggregate of over 1,000,000 tons
on the stocks.
For the first time since September, 1915,
Bradstreet's index number at the end of April
shows a halt in the advance of commodity
prices.
The New York clearing house members on
May 22, 1916, reported aggregate loans, etc.,
$3,380,005,000, deposits $3,519,032,000, and
excess reserves $76,956,000. Since April 1,
1916, loans have increased $16,334,000, deposits decreased $46,925,000, and excess reserves decreased $46,867,000.
Exchanges
through the clearing house during the month
increased $2,810,951,582 over last year.
Statistics of failures in this State show in
April a decrease of f44 in number and $16.,090,504 in liabilities compared with a year ago.
Exports from the port of New York in the
four weeks ended April 29 were $170,826,282,
an increase of $74,784,497 over April, 1915.
Imports for the same period were $112,134,268,
an increase of $27,174,847.
The principal exchange rates displayed weakness last month; the recent decline in sterling
was checked by imports of $10,456,000 gold
from Canada; Paris checks receded to 6.07J,
but have recovered to 5.92; German exchange
touched a new low record of 71 £ and strengthened to 77.06; Amsterdam exchange, which has
been quoted at a premium of 5 per cent to 6
per cent for two months, has declined to 41.50.
More firmness in money rates was apparent
during April. Call loans advanced sharply
about the middle of the month when foreign
relations were disturbed. The high quotation

278

FEDERAL RESERVE BULLETIN.

for odd lots touched 4 per cent, but the market
quickly settled to a 2 J per cent rate for renewals. Time loans on collateral advanced about
£ per cent in the minimum rate, the range now
being 2f per cent to 4 per cent against 2J per
cent to 4 per cent on the 1st of April. Quotations for bankers' acceptances were practically
unchanged at 2 per cent to 2\ per cent. Commercial paper rates remained within a range
of 3 per cent to 3J per cent.
DISTRICT NO. 3—PHILADELPHIA.

Last month attention was directed to the
rising prices and brisk trade in most lines of
business. Since then so much has been said
of the unsatisfactory aspect of the labor situation that a special investigation of the subject
has been made.
Both skilled and unskilled labor has been
scarce for some time, and in many lines of industry wages have been increased again and
again until they are abnormally high. There
is almost universal complaint, however, that
as wages are increased a large class of wage
earners become less productive, and the failure
of industrial plants to make sufficient or reasonable output is preventing the realization of
much, if any, profit from operations. The attitude of such wage earners is disappointing, as
instead of taking advantage of the present
wonderful opportunity to make large earnings,
they are apparntly not netting much more
than formerly when wages were much lower.
The cost of living for them, as for others, is
much higher, and the whole country is suffering economic loss through the failure of our
industrial establishments to produce the volume of goods for which there is present so great
a demand.
The situation with many manufacturers, as
reported, is so unsatisfactory that there is a
tendency on their part to curtail operations
until they can be conducted under more favorable conditions. There is also deep feeling
that unless better results are obtained from a
day's work it will be almost impossible for this
country to compete successfully for the world's
trade.




JUNE 1, 1916.

Our reports indicate that, with a few exceptions, the high prices of all goods are being
maintained. A slight decline in lumber prices
is noted, due, it is said, to difficulties in shipping, and the holding up of building operations arising from delay in receipt of material,
strikes, and other unusual interruptions. Coal
tar products are cheaper, the supply evidently
reaching the demand, due to the great increase
in the output of these materials that has been
made in the last 18 months.
Retail trade continues very active, and merchandise of all kinds is being freely consumed.
Collections, as far as wholesalers and manufacturers are concerned, are reported satisfactory, but retail merchants in the smaller towns
complain of poor collections, suggesting possiKiy that notwithstanding the large wages
paid they were not sufficient to sustain the
present standard of living.
DISTRICT NO. 4—CLEVELAND.

One of the biggest features of the business
conditions in District No. 4 is the unsatisfied
demand for the output of rubber factories
making pneumatic tires. In Akron during
the last 18 months nearly all of the
leaders have doubled their capacity. They
are all preparing now to redouble. Recent
sales of preferred stocks in the amount of
$12,000,000 in excess of present outstanding
issues will partially provide funds. The present
output is about 50,000 daily. All makers are
far behind in their orders. Labor shortage in
this industry estimated at 2,000 to 3,000
hands.
It looks as if the crest of the wave in prices
has been reached in the steel business. Both
seller and buyer are of the opinion that their
best interests will be served by maintaining
present conditions. There are one or two
lines, such as car building and structural work,
that have fallen off in activity—first, because
deliveries are somewhat extended, and, second,
because it is difficult for the buyer to figure
out a remunerative return. The situation in
the trade, however, is not regarded as any less
strong, for specifications are still continuing in

JUNB.l, 1916.

excess of shipments. Important steel companies have adopted the policy of writing
down inventories out of earnings against the
date when inventory values may come down
automatically.
Pig iron is moving forward from the furnaces
at a faster rate than it is being made. A
larger percentage of furnaces are in blast than
is usually the case at any one time, and without
question many will have to go out for relining
and other causes from now on. The ratio
between Bessemer pig iron, at $21 per ton
f. o. b. valley, and finished plate and shapes, at
between $55 and $60 a ton, is most unusual.
It is between seasons in the coal business.
Lake navigation has not fully gotten under
way as regards the shipment of coal. Railroads are not taking much fuel coal owing to
the fact that the accumulation in anticipation
of a strike is not yet exhausted. The windowglass industry is in a very prosperous condition.
The situation from a collection and credit
standpoint continues as last reported. Ninety
failures are reported in this district for the
month of April, with total liabilities of
$1,145,629. This is a 30 per cent decrease in
the number of failures over last month, but represents a $300,000 increase in amount.
Garment manufacturers report the spring
season • good, although not of the business
volume anticipated. There are definite increases in sales of high-priced goods.
Changes in the wholesale and retail mercantile trade have been mostly those which
come with the changing season. In the wholesale lumber trade car shortage is less troublesome than 30 days ago. The movement
involving the establishment of new companies
and the extension of present plants is still in
evidence, especially in the smaller manufacturing communities.
Labor and employment conditions have been
the disturbing factors recently in this district.
Strikes, real and threatened, are of constant
occurrence, but this latter situation is more
favorable than in the latter part of April and
early in May. The strikers at the Westinghouse Electric & Manufacturing Co. have




279

FEDERAL RESERVE BULLETIN.

returned to work, and the difficulties with
street railway employees in several of our
cities were settled by granting advances to the
carmen. Many concerns are behind in filling
orders on their books, due to continued shortage and scarcity of labor. A number of companies fear cancellation of orders unless there
is an improvement from the help standpoint.
Smaller plants in certain sections have been
wholly or partially closed on account of labor
conditions. A significant feature of some
reports is that the advance in labor prices has
not been accompanied by increased efficiency.
Farming communities, retarded for some
time on account of weather conditions, are
now busy, with encouragement on every hand,,
Growing wheat looks much better, and prospects are good for an average crop. Livestock prices are high. Farmers are holding
wool for 40 cents a pound, and it looks as if
they would get that price soon. This is
almost double the price prevailing before the
war. Spring planting has been going on
rapidly in the tobacco district, and a large
crop is predicted. Farmers are also going
heavily into hemp.
Notwithstanding a reported slackening in
structural steel demand, reports on building
operations for this month show improvement.
The improvement seems to be in the number
of smaller buildings, as it will be noted from
the comparison given below that nearly 1,200
more permits were issued during April than
during March in the six large cities of the district.
Number of permits
issued.
March, April, April,
1916. 1916. 1915.
Cleveland
Cincinnati
Columbus
Pittsburgh
Toledo
Youngstown —

Valuation.
March,
1916.

1,123 1,533 1,897 $1,838,465
984,500
1,466 1,706 1,658
868,935
340 393 310
332 482 453 1,767,612
340 611 392 1 022,495
176,313
100 172 154
3,701 4,897 4,864

6,658,320

April,
1916.

April,
1915.

$2,625,055 $3,076,385
1,156,165 1,317,485
1,166,840
406,555
1,250,762
974,283
1,188,467
959,042
373,001
219,505
7,760,290

6,953,255

The percentage of increase in post-office receipts over 1915 is the same as last month, the

280

FEDERAL RESERVE BULLETIN.

JUNE 1,1916.

increase being at the rate of 11.2 per cent and are maintaining rediscount lines with offerings
the totals as follows:
largely of farmers' notes.
Agricultural conditions are reported fair.
April, 1916.
April, 1915.
Crops are somewhat backward, owing to late
spring and dry weather. Wheat and oats are
$311,238.20
$332,914.86
Cleveland
252,441.41 not as good as last year, but more corn and
267,607.54
Cincinnati . .
96,955.96
110,991.04
Columbus
305,380.53 oats are reported planted than ever before.
364,744.40
Pittsburgh
86,296.64
94,850.35
Toledo
-.
24,016.88 Farmers are getting out of old habits of sending
26,569.28
Youngstown
1,076,329.62 money away for hay, flour, and other staple
1,197,677.47
articles, raising more home supplies, using the
Money continues easy, although the demand money saved to buy land and improve it.
is better than 30 days ago. The municipal
Cotton acreage has probably been increased
bond market is quiet, prices being well main- about 10 per cent and lands have been better
tained. Considerable buying of public utility prepared than usual, but it is difficult to estiand industrial stocks is noted.
mate the effect of lack of rain and insufficient
Clearings continue heavy, record days sur- supply of potash for fertilizer. Quite an interpassing any previous figures being reported by est seems to be developing in raising cattle and
our reserve cities. The reports to the Comp- hogs particularly.
troller of the Currency under date of May 1, Tobacco manufacturers report an increase of
•1916, show $552,157,931 deposits in the six business for the past four months over 1915.
large cities of this district. This is $11,000,000 Increased wages have satisfied labor, but the
increase over the.figures as reported March 7, increase, with the high cost of supplies, from
1916, and an increase of $140,000,000 over-.the which relief seems remote, with prices hardly up
figures of a year ago. Detailed table of de- to normal, has not made results very satisfacposits is given below.
tory. Only about two-thirds of a tobacco crop
has been planted in South Carolina and some
May 1,1916. Mar. 7,1916. May 1,1915. farmers are replanting tobacco fields in corn and
forage crops. In. North Carolina and Virginia
Cleveland...
$114,062,431 $115,878,885 $89,408,936
Cincinnati...
86,026,493
86,161,980
68,989,509 normal planting is anticipated.
Columbus...
30,507,380
30,995,408
26,186,719
269,446,777
Pittsburgh..
258,873,444 191,389,633
Lumber dealers report only fair conditions,
35,598,953
Toledo
35,160,779
26,341,024
16,380,410
14,138,713
Youngstown
10,580,843 and the import and export trade is being seri541,073,722 412,896,664 ously handicapped by scarcity of freight room
552,157,931
and high rates. Builders report fair conditions.
DISTRICT NO. 5.—RICHMOND.Several large manufacturers of wagons say busiThere have been no unusual business changes ness is hardly up to normal.
in general conditions in May. There is com- Woolen mills say they are busy and running
plaint of lack of rain, relieved to some extent 10 hours, but the cost of raw material and the
by recent showers.
difficulty of securing efficient labor and a supply
Conditions range from below normal in a of dyes limits profits until they are hardly comfew localities to fair, but more generally are mensurate with the apparent prosperous condireported good, and some reports are decidedly tions. A large hosiery mill employing 1,200
optimistic. Collections generally are reported hands, largely women and only natives, was
fair, with increases of from 12 to 20 per cent never so busy. It has twice as many orders as
in volume of trade. Larger towns report it can fill, and is advertising locally for labor.
higher deposits in banks and limited demand
Cotton mills are reported coming into their
for loans. Commodity loans, particularly in own again and are running at capacity, with
cotton, are being liquidated, but smaller banks some on overtime. Sales of finished products




7EDEBAL BESEBVE BULLETIN.

JUNE 1,1916.

are yielding good profits, and many of them
are sold up into the fall. Quite a number of
trade acceptances have been offered of late for
rediscount, given by mills for cotton purchases.
The following, from a very prominent cotton
manufacturer is interesting:
Money is obtainable at reasonable rates,
more so than ever before at this season of the
year. Farmers are borrowing more largely
from banks than ever before, and at more
reasonable rates of interest. The Federal
Reserve Banks have been a great blessing to
the people generally, and especially to manufacturers and others who use large amounts on
short term paper. It is doubtful if any law
has ever been put upon the National statute
books that has afforded so much real relief and
restored confidence so thoroughly as this.
There has recently been some little improvement in the value of cotton.
A large paper manufacturer reports scarcity
of raw material and uncertainty of labor conditions. A manufacturer of tools reports
similar conditions and that it is found necessary to train unskilled labor. Limestone quarries are very busy, no one is idle who wants
work, the product going to Pittsburgh for
fluxing purposes.
Railway earnings show improvement, but the
demands of labor seem to have more than discounted this and wage increases in almost
every direction have to be reckoned with.
We are apparently reaching our present limit
in transportation and unless the railroads
obtain sufficient revenue to increase facilities
and meet the demands of labor conditions
may arise most inimical to the continued
development of our resources and opportunities.
DISTRICT NO. 6—ATLANTA.

There is a remarkable uniformity in reports
regarding progress in all manufacturing lines.
This promises to continue throughout the
summer. Interest is at this time largely centered in crop conditions and considerable fear is
felt as to the effect the dry weather has had on
growing crops.




43265—16

i

281

In Georgia the cotton acreage has been
reduced but not to any great extent. Fertilizer
tag sales show a decrease of 53,789 as compared
with 1915. Cottonseed meal tags show a corresponding falling off. The crop is all planted
and in fairly good shape. Reports from northern Georgia indicate damage from dry weather.
South Georgia reports less damage. The
peach crop of Georgia though short is in fine
condition, has been well sprayed, fertilized,
and is the cleanest in several years. The
shortage is due to the hot weather in January
and frosts late in April. The quality and size
of fruit are first class. The crop is expected to
approximate 3,200 cars as compared with
4,468 in 1915. Advance price offerings are
good and indicate that the crop will bring
approximately $800 per car.
Statistics show a large decrease in the use of
fertilizers in Alabama and Mississippi, and
while the acreage has not been as much reduced
this year as expected, the crop will be less.
The cotton, corn, and other crops throughout
this belt are badly in need of ram.
The corn, wheat, and oats acreage show an
increase, and while somewhat damaged by dry
weather the outlook for the wheat crop is very
promising, and corn is reported in good shape
at present. The oat crop has suffered for rain
and in many places has rusted.
Diversification is not falling behind last year.
Especially is this true in the more progressive
sections. The most encouraging factor in
diversification is the increased interest in cattle
raising, and especially in the improvement of
the breed.
The strawberry crop though late is progressing favorably and a large crop is expected, with
good prices.
In the tobacco district of Tennessee practically all the leaf tobacco is out of the hands of
the farmers and held by the factories and warehouses. In the past 30 days tobacco has been
in greater demand and is selling at an average
of $1.50 to $2 per hundred higher than it did
at the opening of the season. Planting pros-

282

EEDEEAL BESEEVE BULLETIN

JUNE 1,1916.

pects for 1916 crop are good, and a large acreage indications are that a large share of the Cuban
is expected on account of high prices.
crop will come here for refining. Coffee is secIn the Birmingham district the production of ond with imports of $3,033,079. Sisal was imiron and steel continues at high point and pay- ported to the amount of $1,451,954.
rolls are larger than ever before. There is a
Agricultural prospects throughout this secbetter tone to the coal business. The demand tion are exceedingly favorable for fall returns,
is not strong enough to put coal mining on a while heavy shipments of berries and vegetables
substantial earning basis. The coal demand are now going forward to market and increased
lately has been fairly good, but that has been returns are evidenced to growers through effecsomewhat enhanced by a shortage of cars. tive selling organization.
Machine shops and other manufactories using
Reports from the Savannah district state
raw materials are all handling a large volume that the lumber business has recovered considof business. Collections are fairly good. New erably and that the outlook is regarded as exfurnaces are being put into condition at Annis- ceedingly favorable. Building is more active
ton and Qadsden, Ala., to resume operations and the tendency of prices seems to be upward.
in near future.
It is practically conceded by the naval stores
Atlanta clearings for the first 18 days in May trade that prices that have been prevailing for
show $45,772,604.26 as compared with $33,- the past three months have been recognized as
325,048.20 for the same period in 1915. Bank much below cost of production. The disposideposits continue to increase with only fair tion on the part of the producers not to sell has
demand for loans.
brought a more stimulating effect upon the
The New Orleans branch of the Federal Re- rosin market. Prices for turpentine at this
time are low, but it seems to be the general
serve Bank of Atlanta reports:
opinion that these prices are only temporary
The local money market continues steady
and unchanged with a fair demand for loans and that an early advance can be appreciated.
and funds in good supply.
The figures of the commerce of New Orleans DISTRICT NO. 7—CHICAGO.
for April are most encouraging, showing a large
General business in this district is in a conincrease in both imports and exports. New dition of activity, with the supply of money
Orleans is becoming more and more the home still in excess of requirements. A better
port for Latin-American trade, and now handles demand for funds is developing in some of the
nearly as much trade during the warm months country communities, and this is shown by
as during the winter.
the request for accommodations from some of
Imports for April were $11,869,104, an in- the smaller banks upon their reserve city corcrease of 19 per cent over the corresponding respondents. The larger Chicago banks are
month of last year, of 35 per cent over the finding it necessary to purchase commercial
figures of 1914, just before the war, and of 59 paper at low rates in order to derive some
per cent over the average April imports of the income from their heavy deposit accounts.
previous six years.
There is a possible danger from the forcedThe exports totaled $22,939,635 to foreign liquidation of the paper issued by the smaller
countries, with Porto Rico included, or 6 per concerns and now being marketed by the
cent over last year, and 67 per cent over commercial paper brokers. When a larger
April of 1914. There was shrinkage in the number of names, including the more substanexports of wheat and flour as compared with tial houses, is offered, the banks will naturally
1914.
I discriminate, particularly if their own funds
Sugar stands first among the imports, with j are being reasonably well employed by their
$5,815,546 of that article brought in, and the I customers., which may cause inconvenience to




, 1916,

VBDBBAL BEBEEVE B U L L E T I N

the small concerns which, are without established banking lines to take up their floating
supply of paper.
Bond houses claim that while there is a large
supply of money awaiting investment, sales
have fallen off and customers are not showing
the same interest as a month ago. New issues
of bonds and notes appear to meet with favor,
but the demand for municipal bonds has
slackened and prices are a little below the high
point.
Business in general is progressing satisfactorily. There have been labor disturbances
which have interfered with building operations
in some sections, and have caused a number of
the larger manufacturing establishments to
grant increased wages. Up to date the results
have not been serious, but a continuation will
result in such increase in the cost of production
that retail prices will of necessity be increased,
and there is the possibility of decreased sales,
particularly in foreign competitive markets.
A correspondent advises that factories manufacturing principally for South American trade
are experiencing a decrease in orders owing to
the excessive ocean freight rates. One thing
to be taken into consideration with regard to
the volume of business is the present value of
merchandise, which in many cases is considerably above the quotations of a year ago.
Weather conditions have delayed agricultural
work from two to three weeks, and a decreased
acreage of winter wheat seems to be fully
confirmed by the reports at hand. The soil
is generally in good condition, and there is a
favorable prospect for a good crop of corn and
oats. Illinois has suffered considerably as
regards wheat, but oats and corn are reported
upon favorably, and with good weather conditions the farmers should have a successful year.
There appears to be a shortage in the supply
of cattle and hogs. Indiana anticipates a good
oat crop, a fair acreage of corn, but a severe
decline in its original wheat prospects. Live
stock is said to be in fair supply. Iowa reports
a fair quantity of wheat and anticipates a good




288

supply of both corn and oats. Cattle and hogs
are said to be fewer in number, but the farmers
seem to be making an attempt to increase their
live-stock holdings,
In Michigan, the fruit crop is generally
reported in excellent condition, with prospects
of a good yield. The weather has considerably
delayed all spring work, but there apparently
is a satisfactory outlook for wheat, corn, oats,
and potatoes, the principal products. There
is said to be a good supply of cattle but a
smaller number of hogs than usual. In Wisconsin the general crop outlook is somewhat
improved, and a large acreage of potatoes is
anticipated in the southwestern part of the
State. A good supply of lambs is reported,
but other live-stock does not appear to be up
to normal.
Agricultural implements.—Manufacturers advise some falling off in sales, owing to the crop
injury and the increased c&st of their finished
product. Actual sales are reported as approximately the same as last year, for the decreases
in some lines of the implement trade are offset
by increases in other lines. The high cost of
raw materials, together with the increased
demands of labor, are subjects which are
receiving the earnest attention of the large
manufacturing establishments.
Automobiles.—Shops are still operating at
capacity, with the warehouse stocks of dealers
going out, and collections good.
Building and building material.—General
building in Chicago outside of the loop district
is active, and a number of cities which have
benefited by the conditions of the last year
are engaged upon plans of expansion and construction. The brick business is reported good,
with satisfactory prospects for the immediate
future. Cement is being disposed of in fair
volume and anticipates sharing in such construction as may develop.
Coal.—There has been small business in
coal during the past month, as the large consumers have been engaged in using their
storage coal. There is now a fair prospect for

284

FEDERAL RESERVE BULLETIN.

improvement and the mines are reported to be
showing considerable activity. Collections on
the whole are said to be satisfactory.
Distilling and brewing.—The distilleries are
still working overtime in connection with alcohol orders,.with ordinary business somewhat
quiet. The breweries are experiencing an increased demand, as the general labor situation
has improved and more men are being employed.
Dry goods.—Retail selling has been somewhat
retarded by unusually cold weather, and purchases for fall delivery are in large share booked
at this time. As compared with last year, business in general shows an increase, but there is
considerable difficulty experienced in securing
deliveries of merchandise. The retailers, and
in some cases the wholesalers, distributing
goods throughout this territory appear to be
heavily stocked in anticipation of a considerable
demand for merchandise during the summer
and fall. The large wholesale houses are restricting more and more their future commitments and are inclined to analyze carefully the
situation as regards the ability of their customers to dispose of the goods purchased.
Furniture.—It is expected that the advance
in materials will soon cause an increase in the
price of furniture, and the manufacturers report
a fair volume of business, satisfactory collections, and difficulty in securing sufficient labor.
Grain markets.—There has been little change
in the value of wheat during the past month,
and farmers are said to have a good supply of
old-crop corn and oats, also a fair amount of
old wheat. The demand for export is reported
fairly good for oats, fair for corn, and poor for
wheat, Canadian wheat underselling that in the
United States.
Groceries.—The sentiment in the grocery
business is considerably improved over last
month; a brisk trade is reported, also a good
outlook. Collections are meeting with the approval of the wholesalers, and the various distributing points are disposing of a good volume
of merchandise. This particularly applies to
canned goods, owing to the high price of sugar,
which causes a decrease in canning and pre-




JUNE 1, 1916.

serving at home. Some imported groceries
have increased enormously in price, but on the
whole there is little criticism, and a generally
optimistic feeling.
Hardware.—A decreased demand from the
general trade is reported, but the railroads and
manufacturers are purchasing larger supplies.
Collections are good, and the failing off of sales
in farming communities is looked upon as deferred purchases, as the farmers are busy with
their corn planting. To a slight extent the
high price of some items is retarding trade,
but there seems a disposition on the part of the
manufacturers to hold down as far as possible
the prices and to avoid such advances as would
materially curtail sales.
Leather.—The activity in tnis line continues
at increasing prices, and trade throughout this
territory is excellent. There is difficulty in securing labor and workers are inclined to be
restless. Export trade is still hampered by lack
of shipping facilities. There is a slight recession in the belting business, with difficulty in
securing certain classes of raw materials, particularly metals and fabrics.
Live stock and packing.—The packing industry reports a slight decrease in domestic sales
during the last 30 days, attributed to high
prices, also a strong foreign demand. Live
stock is coming into market in sufficient supply and prices are well maintained. Byproducts, such as hides, skins, wool, and glue,
are meeting with an active demand, and fertilizers indicate a good distribution.
Lumber.—Prices for lumber are well maintained and sales are showing a satisfactory increase over last year. Collections are somewhat improved, but a number of customers are
still reported taking extra time who formerly
met the discount terms.
Mail order.—During the month of April a
considerable gain in sales was reported for the
States of Iowa, Illinois, Wisconsin, Indiana,
and Michigan, as compared with the same period last year.
Paper.—Prices are reported firm, with some
decrease in demand, which is attributed to over-

JUNE 1, 1916.

FEDERAL.< BESERVE BULLETIN".

285

stocking by retailers. A revival is not antici- 1916, Deposits in the 8 Central Reserve City
pated in the next few months.
member banks in Chicago were $611,378,000,
Pianos.—Factories in this line report con- at close of business May 20, 1916, and loans
siderable activity, with collections good, and were $446,231,000. Deposits show a decrease
the people in a better position to pay, particu- of approximately $34,000,000 during the past
larly in the good farming districts. A fair month, and the loans an increase of approxitrade is expected during the summer, with a mately $12,000,000.
large fall business. The cost of production has DISTRICT NO. 8—ST. LOUIS.
increased, it is difficult to procure the necessary
There has been no important change in
raw material, and labor is in short supply.
business conditions in this district during the
Steel.—The steel mills are unable to handle last month. Some lines report gains equal to
all of the business now offered them and a con- those reported in previous months, but in
siderable quantity is being booked for 1917. general, business seems to have slowed down
There is evidence that building and manufac- at least to a degree. Some authorities conturing are being held back owing to the high sider this the natural result of the rapid
price of steel. On the whole, conditions are increase in the cost of finished articles, while
reported as excellent, with collections good.
others hold that it is due to a general readWatches and jewelry.—Factories are doing a justment. Recently more seasonable weather
very satisfactory amount of business, and the has stimulated retail trade. Shipments of
demand at present shows no signs of abating. wholesalers continue satisfactory with the shoe
Jewelry looks forward to a continuation of manufacturers showing the greatest activity.
good trade and is showing a material increase Conditions continue favorable and while inover last year's volume. Sales in the optical creases are not in the same ratio as heretofore,
supplies are better than last year, but the it would seem that this slight reduction in
foreign situation has affected this line since a volume is due to a conservative attitude. It
number of the lenses used in this country are, is perhaps a favorable sign, indicating that
under normal conditions, of European origin. business men are carefully examining the
Wool and woolens.—The mills are still re- future.
ported as operating upon their accumulated
The railroad earnings in the district continue
supplies to a large extent, but the quoted value, to show increases. Transportation problems
of wool has shown no decline. Speculative due to the shortage of cars and the congestion
buying has advanced the price in the Middle at freight terminals have received the careful
West from 1 to 2 cents per pound. Woolens attention of railroad operators for the past
are in good demand, sales are better, and few months. While the volume of freight toncollections improved.
nage remains at a high level, it appears that it
Clearings in Chicago for the first 20 days of is being handled more expeditiously. On May
May were $1,197,000,000, being $259,000,000 1 the roads throughout the country reported a
more than the corresponding 20 days of May, surplus of cars as against a shortage thefirstof
1915, and $148,000,000 more than the first 20 the previous month.
days in April, 1916. Clearings reported by
Generally speaking, labor conditions in this
17 cities in the district outside of Chicago district are satisfactory. From indications it
amounted to $223,000,000 for the first 15 appears that there is little or no unemployed
days of May, 1916, as compared with $143,- labor in the district; Wages have gone up in
000,000 for the first 15 days of May, 1915, practically every industry. A few strikes have
and $220,000,000 for the first 15 days of April, been reported from various sections of the dis-




286

1'EDBBAL BESEEVE BULLETIN.

3ffN® 1,1916,

trict, but these have been settled with little or are figures on the wheat crop in the States
within this district, taken from the Governno difficulty.
Reports on the principal crops are of especial ment report of condition as of May 1:
importance at this time of the year. Below
Condition.

Acreage.
Per cent
abandoned.
Arkansas
Illinois
Indiana
Kentucky
Mississippi .
Missouri
Tennessee

.

.

5
33
30
6
6
20
43

Acres
remaining
to be
harvested.
232,000
1,494,000
1,579,000
910,000
7,000
1,784,000
886,000

These figures show that the per cent of
abandoned acreage this year in the principal
wheat-producing States of the district was
unusually large and the report of condition
is below both the 1915 and the 10-year average. Reports of condition, however, show improvement as compared to April 1 in each
State of the district except Mississippi. Reports
on the wheat situation from correspondents
and personal investigations are, however, somewhat pessimistic. The stand of wheat in central Missouri and Illinois is light. Correspondents report the wheat is making a poor
showing, and the complaints of injury to the
crop by chinch and green bugs are quite frequent. Many farmers report that they have
had to plow up their winter wheat and put in
other crops. It is possible, however, that with
favorable conditions from now on the crop will
exceed present expectations.
The condition of the cotton crop in Arkansas
and other cotton-producing States of this district is satisfactory. There has been an increase in acreage this year as compared to 1915,
variously estimated at from 10 to 15 per cent.
The final figures on the cotton acreage will
probably show a substantial increase as compared to last year, but somewhat smaller than
in 1914. From reports it appears that the land
was well prepared for planting this year and
that there was sufficient moisture in the
ground. The development of the crop to date
has been somewhat retarded by the late spring




Mayl,
1916.

87
62
65
87
85
70
89

Forecast.

Mayl,
1915.

97
92
93
78
84
92
85

10-year - 1916, from
average. May 1 condition.
90
85
84
88
87
87
90

2,685,000
18,062,000
19,193,000
11,321,000
89,000
21,854,000
10,251,000

Final estimate, 1915.

Change
from
Apr. 1 to
Mayl.

2,750,000
53,200,000
47,300,000
9,900,000
100,000
34,108,000
9,030,000

3
5
7
2
-7
4
1

and it is from 10 days to 2 weeks behind its
normal development at this writing. It was
reported that a little more than half of the
usual amount of fertilizer has been used this
year, but as cotton has never been heavily
fertilized in this district this would not appear
to be of prime importance. Weather conditions have improved in the past week or two,
and from present indications the crop will develop rapidly.
The condition of corn seems to be much better than that of wheat. The crop has been
planted in all parts of the district and is now
2 or 3 inches high, except in the most northerly
sections. Conditions were favorable for the
planting, and prospects for this crop are entirely favorable. In some of the southern sections of the district the fields have been cultivated once. Oats, alfalfa, clover, and other
fodder crops are reported to be growing nicely,
and the outlook is promising.
Reports from the strawberry producing sections of Arkansas, Tennessee, Kentucky, and
Missouri are entirely favorable. The crop is
moving to market rapidly. The week ending
May 20, western Tennessee shipped daily over
100 cars of strawberries; Arkansas about 50
per day. Missouri berries are now coming
into the market, and six or eight cars are being
shipped daily from the Ozark district.
Truck farming in the district has been retarded by the late spring. The ground, however, was in good condition to be worked, and

JUNE 1,1916.

EEDEBAL RESERVE BULLETIN"*

the crops are gradually coming to market.
Under the influence of warmer weather during
the last few days, radishes, lettuce, and other
similar vegetables, are now plentiful. Asparagus is beginning to come into market. Reports
indicate that the cherry crop will be later than
usual, and will not reach the market before
the middle of June. Apples have been reported to be in excellent shape, and peaches
in only fair condition.
In the live-stock market there has been an
increase in the receipts and shipments of cattle
this April as compared to April, 1915, but the
hog, sheep, and horse and mule markets have
not been as active as at this time a year ago.
The principal decrease comes in the horse and
mule, and is due probably to lessened activity
of the foreign Governments in this market.
The money market in this district remains
stationary. A few bankers report tendencies
toward higher rates for discount, but this seems
to be due to local influences rather than a
general movement. It seems probable that
no improvements in rates may be looked for
in the immediate future. The average rate of
rediscount in St. Louis is probably not over 4 |
per cent; in Louisville not over 5 per cent, and
in smaller communities, somewhat higher rates.
Commercial paper is freely quoted at from 3 to
3 | per cent for best names; other names not
over 4. The bond market shows little or no
change, and is not as active as it was 60 to 90
days ago.
The clearings in the larger cities show gains
similar to those noted in the last few months.
The percentage of increases in clearings for the
week ending May 13, is as follows: Evansville,
11.8 per cent; St. Louis, 21.6 per cent; Louisville, 18.8 per cent; Memphis, 15.4 per cent;
Little Eock, 33.
April clearings of this bank amounted to
199,260 items, or a total of $88,784,771,67.
This shows a very slight loss as compared to
March, but a substantial gain as compared to
April, 1915.




287

DISTRICT NO. 9—MINNEAPOLIS.

Very high winds early in the month created
local damage in the small-grain territory, by
uncovering a considerable amount of seed that
had been planted. This necessitated reseeding. This damage has been repaired and will
not affect the yield. Cold and rainy weather
during the earlier part of the month hampered
farm operations and increased the amount of
land that is being disked in. Wheat seeding
has been practically completed, and it is apparent that there will be some shortage in
acreage due to the lack of fall plowing last
year and the difficulties encountered in offsetting it with spring work. There is a disposition in some quarters to estimate the decrease in acreage at 15 per cent, but a review
of the reports from all parts of the district,
and a careful survey of conditions, seems to
indicate that this may easily prove to be
excessive. It is probable that the actual
decrease will prove to be from 5 to 8 per cent.
Any shortage in wheat will be considerably
more than offset by a very large increase in
barley and rye acreage, and a substantial
increase in flax. The total crop production is
not likely to be impaired to any extent. All
reports indicate that corn will be about up to
the average in acreage, and with the promise
of favorable planting conditions, this year is
likely to develop a heavy crop.
An unfavorable element in the crop situation
is that throughout a very large part of the
grain territory, farmers have been compelled
to seed without proper preparation of the
ground. A large amount of wheat has been
disked in to get it seeded before the end of
the usual planting season. Barley, rye, flax,
and corn, however, will have a more favorable
start.
The seeding on stubble land has the advantage of very excellent moisture conditions prevailing generally over the district. In case
the season shows a good average rainfall
there will be no difficulty in securing a good

288

EEDEBAL BESEBVE BULLETIN.

crop. The danger that confronts the grain
territory is that the planting on the poorly
prepared land will suffer severely should dry
weather develop during the middle of the
growing season.
Sheep, cattle, and horses are bringing high
prices, and with the amount of grain still left
in the farmers7 hands the agricultural population is enjoying unusual prosperity. Wheat
prices are holding up strong, and there is some
increase in the amount of grain coming to
terminals. Minneapolis and Duluth are showing the first increase in receipts since the
planting season started.
General business conditions are excellent,
and both wholesale and retail trade are brisk.
Industrial concerns are fully occupied, and
labor is enjoying ample opportunities of employment at good wages.
Mining operations in northern Michigan and
northern Minnesota are starting with a rush,
and iron-ore production is expected to reach
record figures this year. The mines are shipping the maximum capacity of the ore boats.
Copper production, both in northern Michigan
and Montana, will maintain the extremely
high level of last year.
DISTRICT NO. 10—KANSAS CITY.

May has been generally favorable for farm
work, but vegetation is from a week to 30 days
behind, unseasonably cool weather, frosts,
snow, and freezing temperatures having been
reported from various parts of the district.
Pastures are in excellent condition. Corn
planting is well advanced, the corn coming up
generally. There is a substantial increase in
the acreage. The early part of the month was
unusually dry, but recently beneficial rains
have fallen in various sections.
An estimate of the wheat crop made by
grain dealers in recent session is considerably
below the figures made by State authorities.
There has, undoubtedly, been insect damage
in both Kansas and Oklahoma. This has been
serious in certain sections, but, taken as a
whole, the promise is for more than an average




JUNE 1,1916.

crop. No damage has been reported from
Nebraska, where the wheat is said to be in
excellent condition. Alfalfa, the value of
which has reached an enormous figure in this
district, is reported in splendid condition.
Delay in grain shipments by reason of car shortage again occurred in various sections during
the month, but relief is appearing. There is
every indication, however, that there will
again be a severe car shortage when the wheat
harvest begins to move.
Some apprehension is expressed with regard
to securing sufficient labor for the harvest
fields, and an effort is being made through
cooperation between the labor departments
of the States and Nation to supply this demand. While there is some indication of a
disposition on the part of labor organizations
to take advantage of present prosperity to
urge their demands, and increases in wages are
being commonly reported, there are no labor
disturbances worthy of notice in this district.
Live-stock receipts for the first four months
of this year at the six principal markets in this
district are as follows: Cattle—1916, 1,316,757;
1915, 1,152,385; increase, 164,372. Hogs—
1916, 3,798,610; 1915, 3,200,916; increase,
597,694. Sheep—1916,1,756,807; 1915,1,939,559: decrease, 182,752.
For a time it appeared that all feeders of
live stock would lose money on their winter's
operations, but prices have advanced so rapidly
that they have now reached a high level and
the stock being marketed at this time shows
a nice profit. Stockers and feeders are higher
than ever known at this time of the year.
The movement of cattle from Texas and
New Mexico to the long-grass pastures in Kansas and Oklahoma is greater this year than the
two prior years. The total number going to
these pastures is now estimated at over 200,000.
This movement has been stimulated by the
drought in large areas in the range district of
Texas.
The demand for money to finance the cattle
interests is not so heavy now as it was some
weeks ago. A steady demand from the south-

JUNE 1, 1916.

FEDERAL BESERVE BULLETIN.

west for loans to restock with young steers the
pastures that have been vacated by shipping
the older cattle to the long-grass countries is
anticipated.
There has been more money loaned to the
cattle owners, and is now so outstanding, than
for a number of years. This is partly on account of the high price of stock cattle and feeders and because of the development and increase
of the cattle business. Reports from all over
the district are that cattle are in a thrifty and
healthful condition.
Building activities have been much retarded
by reason of the weather, and, while the lumber trade is considerably ahead of the same
period in 1915, business has been much below
expectation. Production has exceeded demand. In view of the fact that farmers are
now very busy in the fields, trade is unusually
active for this season of the year. There is
every prospect for great building activity all
over the territory, and the excess of lumber
now being produced will shortly be in strongdemand. The retail lumber business has been
constant and satisfactory, a very considerable
percentage above that of last year.
The profitable price for crude oil continues,
but the premiums heretofore paid in certain
localities have been noticeably reduced. There
is a general conviction, however, that the market will continue to advance, and this has resulted in maximum activity in the various districts, making up the mid-continent oil field.
It is now estimated that more than 1,800 drills
are at work, and these developments are covering a constantly expanding area. It is estimated that there will be at least twice as -many
wells drilled during 1916 as were drilled last
year. While the cost of drilling operations is
much greater, this item of increased expenditure is more than made up by the market price
of petroleum.
The largest sale of oil leases in the history of
the oil business was made at Pawhuska, Okla.,
April 20, bringing to the Osage Indians almost
$1,500,000 in bonuses.
The past 30 days witnessed the organization
in this district of one of the largest independ-




289

ent oil concerns in the world, capital $50,000,000. The properties in this organization include several large Oklahoma and Kansas refineries, together with about 14,000 barrels of
oil production daily.
In all the mining fields prosperity and enorous output are the order of the day, with prices
continuing highly satisfactory. In the zinc
fields several new mills are almost completed
and ready to commence operations. Various
new companies have been organized and are
securing leases for prospecting.
The high price of silver is causing much activity and will permit of the dewatering of various mines which could not heretofore be profitably operated.
The value of tungsten being produced in the
Boulder (Col.) field in 1916 is estimated conservatively at a million dollars monthly. The
gain over last year's value—for the first four
months of the two years only—represents
$3,750,000, or 1,500 per cent. It is estimated
that 10,000 men are now employed in this field.
The value of zinc and lead ores shipped from
the Missouri-Kansas-Oklahoma district during
one week in April was 33 J per cent greater than
the previous record week's shipments.
Eecent reports show continued increases in
bank deposits and clearings, Kansas banks
showing an increase of $15,000,000 in approximately three months and breaking all records.
Postal receipts at all important centers in
the district are reaching new high levels. Commercial agencies record but 209 commercial
failures in the district for the first quarter of
1916, with no bank failures. Wholesalers,
jobbers, and retailers report a splendid business,
with collections unusually good. While it is
recognized that the enormous gains made each
month in general business can not continue
indefinitely, there is no immediate indication
of reductions. In no line of business does there
seem to be any marked dullness in this district.
Discount rates have experienced no important change, and the spring demand has been
less than anticipated. Security prices are
notably firm, with upward tendencies. Banks
generally have had difficulty in keeping their
surplus funds profitably employed.

290

FEDERAL RESERVE BULLETIN.

DISTRICT NO. 11—DALLAS.

There is no indication of any material change
in the business outlook in this district, and reports received from all sections continue most
favorable. The only exception to this condition may be said to be in the extreme southwest part of Texas, where, on account of a
drought of several months7 duration, business
has not been normal. During the present
week some rain has fallen in that section, but
hardly sufficient to be of material benefit. The
cattle industry particularly has suffered from
lack of rain in that large area. Eange conditions have been bad, and as the cattle business
in Texas is one of vital importance, it is reflected in trade generally.
Other portions of the district, especially in
the north and east, have had more than the
average rainfall, and as a consequence the 1916
crop is in varied stages of development. Speaking generally the staple field crops are very late.
Corn is suffering from the work of the chinch
bug in many counties, and cotton, of which
conservative estimates place the increased
acreage at 10 per cent over last year, is liable
to extensive ravages by boll weevil, due to
late planting and the warm late fall of 1915.
The wheat and oat crops were not so heavily
damaged by the winter freezes as was at first
supposed, and with the recent rains, general
over practically the entire grain belt, the outlook for those crops is favorable. The grain
crop, however, is still behind the condition at
the same time last year.
The Texas Grain Dealers Association have
given out the following report on averages, as
of May 15: Wheat acreage 67^ per cent, condition 77 per cent; oat acreage 84 per cent, condition 89 per cent; corn acreage 92J per cent,
condition 82^ per cent. Our own information
confirms the substantial correctness of these
estimates. The grain has suffered little from
rust, and a normal production is anticipated.
Rice planting is practically over. Sugar
cane is reported as doing well. A great increase in the acreage of peanuts has been
planted, with an oil output estimated at one-




JUNE 1, 1916.

twelfth of the cottonseed oil production of
Texas.
In the extreme west and northwest, or Panhandle section of the district, conditions are
above normal and excellent reports are received. The situation across the border has
of course affected business and halted operations in various lines. Investment of outside
capital is awaiting the restoration of normal
conditions, and when established an unprecedented era of profitable trade is the forecast.
The cattle industry shows unusual activity in
the west. Cattle wintered well, and with good
range conditions, and high prices obtaining,
the outlook is very promising. A substantial
falling off in the demand for steers is noted.
This has caused stockmen to renew their paper
with local banks, who have sought an outlet
with this bank, all of which has been reflected
in the large amount of live-stock paper offered.
The sheep business is likewise reported as
prosperous. Prices are higher than they have
ever been in the sheep sections. Wool buying
is active, with prices as good, if not higher, than
last season, and production above normal.
The fruit crop in the Pecos Valley of New
Mexico, estimated to have reached from 1,000
to 1,500 cars, is almost a total loss, due to a
heavy freeze on April 19. There will be no
fruit marketed from that section this year,
which will mean a loss of some $200,000.
The New Mexico hay crop is good. The first
cutting was injured by the freeze, and the
fields are now being cut short, to give the second crop an early start.
The lumber mills of that section are running
overtime, and the industry is very active. In
Texas there is an evidence of an overproduction
of lumber, and the mills are curtailing their
operations * to some extent. Prices have
dropped some by reason of this condition.
The larger cities, however, report a good demand for building materials.
Post-office receipts of six of the principal
cities of the district for the month of April,
1916, as compared with April, 1915, show an
increase of 12.3 per cent; the figures being as

JUNE 1, 1916.

FEDERAL KESEBVE BULLETIN.

follows: April, 1915, $219,106; April, 1916,
$246,085.
As evidencing the healthy condition of business, it is interesting to note the bank clearings
of the reserve cities of the district, which show
an increase of 9 | per cent for April, 1916, over
April, 1915. All of the cities show good increases, with one exception, due to local conditions. The figures are as follows: April,
1915, $118,216,439; April, 1916, $129,405,937.
A comparison, as of May 1, of the deposits
and loans and discounts of the banks in reserve
cities of Texas shows an increase of approximately 20 per cent over last year. Generally
speaking, the demand by member banks in this
district is lighter than at this time last year,
except in the cattle sections, where the demand
is now very much heavier, due very largely to
the fact that the banks in those sections are
carrying a large amount of live-stock paper,
which has heretofore been carried outside of
this district.
Failures in the district for the period from.
April 15 to May 15, 1916, were 65, with liabilities of $830,399; for the same period 1915
there were 79, with liabilities of $1,380,270.
A tabulation of replies to inquiries from all
parts of the district show collections as good,
and in keeping with the increased volume of
trade.
Transportation lines report an increase of
approximately 15 per cent in freight, and 20
per cent increase in passenger traffic. All lines
continue to report a serious shortage of cars,
and no improvement in the situation.
Wholesale grocery houses are having a substantial trade, and report an increase.of 33J
per cent over 1915, with collections in keeping
with the increased volume.
Jobbers and wholesalers in dry goods,
notions, millinery, and similar merchandise are
closing a very satisfactory spring business, and
report that orders to their traveling salesmen
reach the high-water mark. On account of
the uncertainty in the delivery of goods, and
the shortage of dye-stuffs, merchants in the
smaller cities have bought heavily for early fall




291

trade. Advanced prices of this class of merchandise have created activity in this line.
The first warm weather of the season caused
active buying by retailers of summer goods.
Retail trade is good. Business with large mailorder houses shows a 22 per cent increase with
equal demand for all classes of merchandise.
Building operations over all sections of the district are steadily increasing. There is no evidence of any unemployment of labor.
DISTRICT NO. 12—-SAN FRANCISCO.

Agricultural conditions have been unfavorable. In the northern part of this district the
season has been cold and backward. In California, although the season's precipitation is
above normal, there has been almost no rainfall since February, with consequent important
shrinkage in pasturage, hay, and grain. Wheatsgrowing sections report 15 to 25 per cent less
acreage than last year. Frost on May 6, an
unusually late date, caused serious damage to
grapes, prunes, apricots, and potatoes. Some
estimates from the Sacramento Valley have
placed the damage as high as $2,000,000 or
$3,000,000. Reports seems to indicate that
the crop of grapes will be about 50 per cent of
normal, while prunes, apricots, and peaches
will be from 60 to 75 per cent. Increased
prices will doubtless yield average financial
returns to growers nearly equal to normal.
Increased production of sugar beets is reported because of high prices for sugar. Both
Hawaiian and sugar-beet interests are prospering. Returns from the 1915 apple crop of
the Northwest have been highly gratifying.
In spite of short pasturage in parts of California the live stock industry is prosperous
throughout this district generally. An interesting report comes from one section of California of prosperity by reason of rapid improvement in the grade of beef cattle and in
the extension of the dairying industry. Cattle
and hogs are commanding full prices. Sheep
command very high prices. Shearing is about
completed and much wool has been sold at 2
to 5 cents per pound more than last year.

292

FEDEEAL RESEEVE BULLETIN.

The lumber industry of the Northwest is
now very active, mills generally running to
capacity and logging camps handling maximum output. Prices now yield satisfactory
profits to operators.
April shipments of petroleum in California
averaged 292,970 barrels daily, exceeding those
of any previous month except June, 1914.
Production increased about 3,000 barrels per
day, while shipments increased nearly 50,000
barrels per day, reducing the amount in
storage more than 1,400,000 barrels. Many
new wells are drilling.
High prices for tungsten have created such
activity in its mining as to cause "boom" conditions in certain sections. There is also
much activity in mining quicksilver, antimony,
manganese, and dolomite. This district has
profited largely by the great advance in the
price of silver. Copper at both record output
and prices is enriching especially Arizona and




JUNE 1,1916.

Utah. The additions to wealth from mining
in this district just now are well typified in the
report that the 1915 profits of the operating
Coeur d'Alene companies, near Spokane, Wash.,
approximated $10,500,000.
At Pacific Coast ports shipbuilding continues
with unabated activity, and import and export
trade shows steady gain. For instance, at
Seattle this commerce for the first four months
of this year totals $114,000,000, as against
$60,000,000 for the first four months of the
preceding year.
Large trade is reported throughout the district, with good collections. Increase in bank
deposits, clearings, building construction, real
estate sales, postal receipts, as reported by the
principal cities of this district, all indicate continued expansion of business. There has been
a steady- increase of loans, but much less pronounced than the increase of deposits. Credit,
consequently, continues easy.

JUNE 1, 1916.

FEDERAL RESEEVE BULLETIN.-

293

DISTRIBUTION OF DISCOUNTS BY SIZES bought in the open market by the Atlanta
bank and its branch during the month under
AND MATURITIES.
consideration.
Discounts of commercial paper reported by
The total number of bills discounted during
Federal Reserve Banks for the month of April the month was 7,031, compared with 6,209 in
aggregated $11,521,400, or 22.7 per cent in March and 5,086 in February of the present
excess of the discounts for the preceding year. The average size of the paper discounted
month, and of 9.2 per cent of like figures for during the month was about $1,640 compared
April, 1915. About 59 per cent of the month's with an average for the previous two months
discounts, as against 68 per cent in March, is of about $1,510, indicating a relatively large
credited to the three southern banks. Chi- increase during the month in the discount of
cago's share of the month's discount business larger-sized paper. These averages vary beis 15.7, Philadelphia's 8 per cent, while Kansas tween $830 and $870 for the Minnesota and
City is credited with 4.9 per cent of the total Kansas City banks, $4,900 for the Cleveland
April business, as against 8.5 per cent in March. and $5,250 for the Boston bank. For the
The total discounts for the first four months of three southern banks the average is slightly
the present year were $39,688,200, compared below $1,500.
with $47,192,100 for the corresponding period
About one-third of the number and one-half
in 1915. The decreases are largest for 60-day
of the amount of the paper discounted during
and 30-day paper, while the amount of 6-month
the month was medium-sized paper, in depaper (agricultural and live stock paper maturnominations of $1,000 to $5,000. Small notes
ing after 90 days) discounted for member banks
(in amounts up to $250) constituted about oneduring the present year was about 1.2 millions
quarter of the total number, though only 2.3
larger than in 1915.
per cent of the aggregate amount of bills disCommodity paper, mostly secured by cotton, counted during the month. Over 75 per cent
discounted during the month by 4 banks of the number of small-sized notes, as against
totaled $1,370,700, constituting less than 12 65 per cent of all notes discounted, were handled
per cent of the total discounts for the month, by the three southern banks.
as against 18.3 per cent for March and 23.4 per
Of the total paper discounted during the
cent for February. Over 98 per cent of this
month, 14.6 per cent was paper maturing
class of paper was handled by the Richmond
within 10 days at the time of rediscount; 23.3
and Atlanta banks, of whose total discounts for per cent paper maturing after 10 but within 30
the month commodity paper constituted 24 days; 20.6 per cent, paper maturing after 30
and 35 per cei\t, respectively.
but within 60 days; and 26.2 per cent, paper
Trade acceptances discounted during the maturing after 60 but within 90 days. The
month by 7 banks aggregated about $240,000, largest absolute and relative increase is shown
compared with about $299,000 during March for 10-day paper, in many cases of large denomiand an average of about $330,000 for the first nations. The share of 30-day paper discounted
quarter of the year. Of the total of $1,229,200 likewise shows a large gain, while those of 60
of this type of paper discounted during the and 90-day paper show corresponding decreases.
first four months, Richmond is credited with About 15.3 per cent of the total discounts was
about 42 per cent; Atlanta, including its New agricultural and live stock paper, maturing
Orleans branch, with over 32 per cent; and less after 90 days. Over 75 per cent of this class of
than 10 per cent by St. Louis. The monthly paper was handled by the Dallas, Kansas City,
total is exclusive of $926,100 of trade accep- and Chicago banks.
tances based upon foreign trade transactions
Less than 8 per cent of the total number of
and purchased mainly by the eastern banks, member banks—or 606 out of 7,631—reported
also of $7,400 of domestic trade acceptances at the end of the month, rediscounted paper




294

FEDERAL RESERVE BULLETIN.

with the Federal Reserve Banks, as against 535
in March, and the same number of 606 in
April, 1915. Dallas reports the largest number of member banks accommodated during
the month—121—or about 20 per cent of the
total number of member banks in the reserve
district. Richmond shows a total of 106 banks
accommodated out of a total of 511 member
banks in the district. Member banks i n

JUNE 1, 1916.

North Carolina to the number of 28 secured
about 1.7 millions of rediscounts, 99 banks in
Texas over 1.4 millions, 23 banks in Illinois
over 1.1 millions, 34 banks in South Carolina
over 0.8 million, and 10 banks in Pennsylvania
over 0.7 million. The combined share of rediscounts secured by 194 banks in these five
States is over one-half of the total amounts of
discounts reported to the Board for the month.

Commercial paper, exclusive of bankers' acceptances, rediscounted by each of the Federal Reserve Banks during the month of
April, 1916, distributed by sizes.
NUMBER OF PIECES AND AMOUNTS.
[In thousands of dollars.]
Over $250 Over $500 Over $1,000 Over $2,500 Over $5,000
To H100. Over 1100 to $500. to $1,000. to $2,500. to $5,000. to $10,000.
to $250.

Over
$10,000.

Total.

Per cent.

Banks.

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

127.5
5.2
126.3
7.4
609.5

419.8 1.1 3.6$5,250
77.5
150.0 2.1 1.3 1,000
149
922.7 4.8 8,0 2, 760
194.0 334
407.4 1.2 3.5 4,900
265.0
335.4 2,067 3,331.0 29.4 28.9 1,610

148 56.5
112 48.1
32 12.7
36 12.5
178 66.0
304 111. 2
22 8.8

219.2
393.9
30.3
52.4
375.7
16.2

995 1,553.6 14.2 13.5 1,560
790 1,808.5 11.2 15.7 2,290
180
2.6 2.1 1,340
240.
146
121.9 2.1 1.1
830
650
564.1 •9.2 4.9
870
293.0 1,470 1,876.2 20.9 16.3 1,280
20.8
87
125. 6 1.2 1.1 1,440

358 27.81,367 235.81,373 533.3 1,304 995.4 1,427 2,425.2 856 3,378.2 2541,963.6

Total.

4.5 10 21.1
186.1
31.8 46 71.9
18.0
19.7
35.0 100 194.8
12.7
352.
12.9 31 68. 3
2.2
49.9
454 182.1 419 323.2 388 679.1 287 1,132.0

92 1,962.1 7,03111,521.4100.0100.0 1,640

15

15
38
10
346

0.6
3.3
5.8
1.7

38.0
95 17.3
23 4.0
19 3.2
112 19.2
78.2
1.6

153 123. 6
172 137.4
32.4
43 29.0
154 110.8
199 140.3
20 14.5

190
192
60
42
135
210
23

432.6
488.9
37.4
19.7
109.1
528.2
21.7

322.9
326.0
93.2
57.5
204.2
344.5
41.7

352.2
394.2
30.0

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

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




Over $100
to $250.

Over $250
to $500.

Over $500
to $1,000.

0.1
2 2
.6
.4
1.9

0.6
12 0
1.4
.5
5.4

1.1
21 2
3.8
3.2
9; 7

5.0
47 9
21.1
16.8
20 4

44.3
13 1
38.3
12.3
34.0

30.4
3 5
13.7
1.8
18 3

21 0
65.0
10 1

3.6
2.7
5.3
10.2
11.7
5.9
7.0

8.0
7.6
13.5
23.8
19.7
7.5
11.5

20<8
18.0
38.8
47.2
36.2
18.4
33.2

27.8
27.0
15.5
16.2
19.3
28.1
17.3

14.1
21.8
12 6

22.7
21.8
12 5

.4
.3
.2

2.4
1.0
1.6
2.6
3.4
4.2
1.3

9.3
20.0
12.9

15.6
16.6

100 0
100.0
100 0
100.0
100.0
100.0
100.0

.2

2.1

4.6

8.6

21.1

29.3

17.1

17.0

100.0

To $100.

0 1
.1
.2
.6
.1
.2

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

Over
$10,000.
18 5

Total.

100 0
100 0
100 0
100.0
100 0

295

FEDERAL RESERVE BULLETIN.

JUNE 1, 1916.

Commercial 'paper, exclusive of bankers' acceptances, discounted during April, 1916, by each of the Federal Reserve Banks,
distributed by-States and maturities as of date of discount.
[In thousands of dollars.]
Number
Number
of banks
of member accommobanks.
dated.

Districts and States.

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

District No. 7.—Chicago:
Illinois
.
Indiana
Iowa
Michisan
Wisconsin
Total

2
9

50.1

4
6

629

4.5

352.6

10.0

7.1

419.8

.5
3.9

10.7
26.8

33.6
31.8

23.6
19.1

68 4
81 6

10

4.4

37.5

65.4

42.7

150.0

.

.

...

24
71
533

1
5
10

678.3

31.4
18.7

66.7
24.4

68.4
22.1

5.0

77
166 5
748.5

16

678.3

50.1

94.9

94.4

5.0

922.7

72
375
299
13

6
8

6.8

132.0

202.2

23.7
29.5

1.4
8.0

3.8

31 9
375.5

759

14

132.0

209.0

53.2

9.4

3.8

407.4

15
97
79
76
140
104

1
9
28
34
28
6

170.0
26. i

692.2
151.7
156.7
13.6

16.2
27.7
357.7
275.9
190.1
20.4

37.1
122.0
434.8
279.0
129.1
58.0

51
18.5
116.7
27.3
.3

53 3
159 6
1,673.2
823 3
529 3
92.3

511

106

196.1

1,019.0

888.0

1,060.0

167.9

3,331.0

93
56

23
7

2.0

25.4

164.8
22.6
172.1
53.2

222.8
34.3
382.6
15.9

35.2

86.9
106.1

District No. 9—Minneapolis:
Michigan
Minnesota
Montana
North Dakota.
South Dakota
Wisconsin
Total




2.6

19.0

4.8

19.0

3.8

3.9

1
10

4.0

9.6

68.3

63.8

i.6

450.2
64 6
697.4
185 5
92
146.7

392

85

6.0

232.4

490.2

719.4

105.6

1,553.6

318
196
349

15
17
37

586.0

424.4
37.8
75.7

38.6
55 3
145.2
3.1
2.2
244.4

40.6
48 3
115.2

16 9
29 3
165.1
9.9
3.7

1 106 5
170 7
505 4
20.0
5.9

210.1

224.9

1,808.5

5.4

.8
11.7

111
21
18
93

77
51

4.4

36
8

4
1

991

74
4

68

Total

Total
commercial paper
discounted.

5.5

65

Mississippi
Missouri
Tennessee

Paper
maturing
after 90
days.

14.2
26
374.0
10.0

3

District No. 8—St. Louis:
Illinois
Indiana

Paper
maturing
after 60
days but
within 90
days.

628

District No. 4—Cleveland:

Total

327.0

132
482
15

Total

District No. 6—Atlanta:
Alabama
Florida
Georgia
Louisiana . . .
Mississippi
Tennessee

6.6

47.0

429

Total......

Total

4.5

3.1

4
1

48

....

District No. 3—Philadelphia:
Delaware
New Jersey
Pennsylvania

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

Paper
maturing
after 30
days but
within 60
days.

167
56
17

District No. 2—New York:
New Jersey
New York... .
Connecticut

Total

Paper
maturing
after 10
days but
within 30
days.

1
1

72
69

Total.....

Ohio
Pennsylvania
West Virginia

Paper
maturing
within 10
days.

9.2

4.2
1.0

591.2

537.9

8
2

30.0
1.5
4.0

1
12

6.0

3.3

55.8
10.3

6.3
6.4
20.4
5.5
29.9

27.9

2

4.9
12.0
20.4

16
7.3
6.4
17.8
1.1
15.1
1.4

.8

37 8
26.8
16 8
40 9
11.5
84.9
22.6

32

74.8

50.7

73. 9

41.2

240.6

281
68
154

12
1
2

2.6

4.3
2.5

9.4
.7

122
88

9

1

3.0

9.7
6.0

1.1
.9

39.7
4.5
9.1
28 4

53.4
10.3
9.1
39 2

744

25

5.6

22.5

12.1

81.7

121.9

157
61
18
81

20
470
31

2.0

9.9

296

FEDERAL RESERVE BULLETIN.

JUNE 1, 1916.

Commercial 'paper, exclusive of bankers' acceptances, discounted during April, 1916, by each of the Federal Reserve Banks,
distributed by States and maturities as of date of discount—Continued.
[In thousands of dollars.]

Number
Number
of banks
of member accommobanks.
dated.

Districts and States.

District No. 10—Kansas City:
Colorado
Kansas
Missouri..
..
Nebraska
New Mexico
Oklahoma . . . . . . .
.
Wyoming

Paper
maturing
after 30
days but
within 60
days.

Paper
maturing
after 60
days but
within 90
days.

52.5

7.4

7.4

23.7
6.1

115.8
20.4
40.4

200.7
36.1
64.8

2
33
6
9

120
220
53

Paper
maturing
after 90
days.

Total
commercial paper
discounted.

20.8

9.6
3.6

305
34

44

13.7

26.3

32.6

59.7

123.4

255.1

940

94

13.7

35.0

82.6

125.4

307.4

564.1

13.1

13.1

99.9
16.2
495.2

1(54.9
91.3
522.9

301.1
134.6
1,421.1

199
9
. .

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

Paper
maturing
after 10
days but
within 30
days.

8.7

Paper
maturing
within 10
days.

1
1

6
10

10
10

28
34
.

. .

1
7
262
58
10
82

5.0

122.6

345.1

611.3

792.2

1,876.2

9.7

24.8

20.3
.9

24.4
11.1

79.2
12.4

1.0

121

5 1
111.2

30.1

2.1

34.0

10.5

26.2

51.3

37.6

125.6

Paper
maturing
after 10
days, but
within 30
days.

Paper
maturing
after 30
days, b u t
v/ithin 60
days.

Paper
maturing
after 60
days, b u t
within 90
days.

Paper
maturing
after 90
days.

Total commercial
paper discounted.

352.6
37.5
50.1
209.0
1,019.0
232.4
537.9
74.8
5.6
35.0
122.6
10.5

10.0
65.4
94.9
53.2
888.0
490.2
244.4
50.7
22.5
82.6
345.1
26.2

7.1
42.7
94.4
9.4
1,060.0
719.4
210.1
73.9
12.1
125.4
611.3
51.3

5.0
3.8
167.9
105.6
224.9
41.2
81.7
307.4
792.2
37.6

419.8
150.0
922.7
407.4
3,331.0
1,553.6
1,808.5
240.6
121.9
564.1
1,876s 2
125.6

3.6
1.3
8.0
3.0
28.9
13.5
15.7
2.1
1.1
4.9
16.3
1.1

2,373.2
20.6

3,017.1
26.2

1,767.3
15.3

11,521.4
100.0

100.0

11,467.5 !
17,807.0 |

13,940.0
14,960.3

5,491.8
4,320.4

39,688.2
47,192.1

99

617

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

13

23
78

Total

6.3

5.0

36.3
17.0
291.8

.4

539

.

6.3

521

20

RECAPITULATION.
[In thousands of dollars.]

Number of Number of
banks acmember
commobanks.
dated.

Districts and cities.

No 1 —Boston
No 2.—New York
No. 3.—Philadelphia
No 4 —Cleveland
No 5 —Richmond
No 6—Atlanta
No. 7.—Chicago
]vgr0 § —st. Louis
No. 9.—Minneapolis
No. 10.—Kansas City
No 11.—Dallas
No. 12.—San Francisco

".

Total for April
Per cent
Total for Jan.-Apr., 1916.
Total for Jan.-Apr., 191o...




Paper
maturing
within 10
days.

429
629
628
759
511
392
991
470
744
940
617
521

9
10
16
14
106
85
74
32
25
94
121
20

50.1
4.4678.3
132.0
196.1
6.0
591.2

7,631

606

1,676.8
14.6

13.7
5.0

.

2,687.0 {
23.3

2,049.7
6,739'.2
10,104.4

Per cent.

JUNE 1,1916.

FEDERAL BESEBVE

297

BULLETIN.

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

Total to
Dec. 31,
1915.

Federal Reserve Bank.

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

April, 1916.

$5,700
4,900
450,500
1,007,100

S3,700
7,400

97,600
43,700

Total
for first
4 months
in 1916.

Total to
Dec. 31,
1915.

Federal Reserve Bank.

St. Louis
Kansas City..
Dallas
San Francisco

$5,600
3,700
57,700
515,600
395,200
8,200

Total
April, 1916. 4for first
months
in 1916.

$167,800
87,800
160,800
74,200

$112,900
80,000
45,000
5,300

1,958,800

Total...

$43,600
30,400
13,600
240,000

1,229,200

Commodity paper, discounted hy each Federal Reserve Bank from Sept. 8,1915, date of first discount, to Apr. SO, 1916.

Total to
Dec. 31,
1915.

Federal Reserve Bank.

Richmond
Atlanta (including New Orleans
branch)
St. Louis
Minneapolis

April, 1916.

Total
for first
4 months
in 1916.

$2,881,400

$805,700
541,700

2,764,000

2,000

Dallas
San Francisco.

$3,711,000

7,032,300
99,800
25,300

Total to
Dec. 31,
1915.

Federal Reserve Bank.

13,300

$239,100
37 200

$215,800
43,900

10,315,100

Total

$21,300
1,370,700

6,748,000

Commodity paper discounted by each Federal Reserve Bank during the four months ending April,

Richmond.

Atlanta
(including
New
Orleans
branch).

$3,668,600
39,800

Class.

$2,760,100
900

Cotton
Wheat
Maize
Flax
Hops
Hav
Beans

San Francisco.

$208,800

$300

Total.

43,900

6,748,000

of commercial paper, exclusive of bankers1 acceptances, held by each Federal Reserve Bank on Apr.
distributed by maturities.

28, 1916f

1,000

$11,800

7,000

i,6oo

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

Paper
Paper
Paper ma- turing ma- turing maafter
after
turing
10 days but 30 days but
within 10 within 30 within 60
days.
days.
days.

-

2,763,900

19,600

400
500
1,000

3,711,000

Federal Reserve Bank.




Dallas.

24,000

„

2,600

Total
Per cent

Minneapolis.

1916, distributed by classes.

$6,637,800
40,700
11,800
8,000
1,600
19,600
400
500
27,600

Total

Amounts

Total
April, 1916. 4for first
months
in 1916.

13,400

215,800

Paper maturing after Paper ma60 days but turing after
90 days.
within 90
days.

$112,900
109 600
317,100
76,900
1,429,800
800,900
286,100
120,900
138,600
17)9,400
780,200
41,300

$179,800
116 600
75,600
92,500
1,662,900
979,000
• 303,800
107,500
132,200
362,600
873,500
105,400

$33,200
160 300
120,100
71,200
2,153,600
1,138,400
540,400
165,100
171,600
420,400
1,301,200
170,500

$5,400
24 100
60,600
16,100
861,100
517,800
289,000
81,700
91,700
284,800
1,028,100
50,400

$8,100
5,400
201,400
148,000
324,500
66,200
121,700
419,800
947,900
63,100

4,393,700
20.5

4,991,400
23.3

6,446,000
30.1

3,310,800
15.4

2,306,100
10.7

Total.

$331,300
410 600
581,500
262,100
6,308,800
3,584,100
1,743,800
541,400
655,800
1,667,000
4,930,900
430,700

Per cent.

1.6
1.9
2.7
1.2
29.4
16.7
8.1
2.5
3.1
7.8
23.0
2.0

21,448,000
100.0

298

FEDERAL RESERVE BULLETIN.

JONE 1, 1916.

ACCEPTANCES.
Acceptances Mid by Federal Reserve Banks as per schedules on file on dates specified.— Total bankers' acceptances by classes.
[In thousands of dollars.]
Nonmember banks.

Nonmember banks.
.Riember
Trust
banks. compa- State Private
banks. banks.
nies.

Date.

Feb. 22
Apr. 5
May3
June 7
July3
Aug. 2
Sept.6
Oct. 4
Nov.l
Dec, 6

Total.

MemTotal.
ber
Trust
banks. compa- State Private
banks. banks.
nies.

Date.

1916.

1915.
93

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

15,494
16,492
16,908
16,348
15,834

'..

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

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

93

20
132
253
275

110
110
192
161
352
472
343
204
396

11,593
13,347
9,960
9.770
11,129
12,884
14,373
13,265
18,154

362
370
425
363
356

822
938

1,010
1,441
1,510

23,838
25,857
25,998
26,222
25,874

10
10
10

20*

1916.
Jan. 3
Jan. 10.
Jan.17
Jan. 24
Jan. 31
1

15,681
17,581
17,661
17,436
17,182
20,323
20,563
21,128
21,000
22,239
22,135
23,566
24,875
25,080
26,655
26,661

Feb. 7
Feb. 14
Feb. 21
Feb. 28
Mar. 6
Mar. 13.
Mar. 20
Mar. 27
Apr. 3
Apr. 10
Apr. 17.
Apr. 24
May 1
May 8
May 15.

7,876
7,985
8,194
8,755
8,670
10,032
11,280
12,864
13,573
14,864
15,028
15,196
15,400
15,728
15,350
16,468

336
347
392
408
408
470
408
411
473
476
564
584
585
671
773
690

1,456 25,349
1,851 27,764
l',841 28,088
1,841 28,440
1,781 28,041
1,631 32,455
34,718
2,467
3,078 37,481
3,262 38,308
3,405 40,984
41,169
3,442
3,504 42,850
3,430 44,290
3,493 44,972
4,960 47,738
6,038 M9,857

Acceptances indorsed by member banks: Trust companies, $269,000; private banks, 511,989,000; total, $2,258,000.

Amounts of acceptances held by the several Federal Reserve Banks at close of business on Fridays, Apr. 28 to May 19, 1916.
[In thousands of dollars.]

i

Acceptances maturing-

Within 10 days:
Apr.28
May 5
May 12
May 19
From 11 to 30 days:
Apr.28
May 5
May 12
May 19
From 31 to 60 days:
Apr.28
,.
May 5
May 12
May 19
From 61 days to 3 months:
Apr.28'.'
May 5.
May 12
May 19
Total acceptances held:
Apr.28
May 5...
May 12
May 19.




Boston.

i

AtNew [ Phila- Cleve- RichYork. delpnia. land. mond. lanta.

1,846
1,889
365
1,404

1,913
2,019
1,110
2?027

283
775
855
1,267

119
333
255
193

2,443
1,860
4,308
3,797

2,795
2,830
3,711
3,675

1,937
1,951
2,533
2,283

514
209
324
506

5,230
5,098
2,493
1,698

8,436
8,436
9,262
8,393

2,577
2,505
2,331
2,798

727
802

1,385
1,571
3,265
4,148

4,603
4,407
3,508
3,846

2,260
2,134
2,385
1,947

564
657
591
810

10,904
10,418
10,431
11,047

17,747
17,692
17,591
17,941

7,057
7,365
8,104
8,295

1,924
2,001
2,159
2,508

84
93

Chicago.

215
489
432
443

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

137
144
294
296
292
238

481
961

480
480
481
961

1,081
1,005
1,342
1,269

28
209
459
452

480

91
117
203
388
633
640
431
336

878
S98
592
634

511
651
781
865
439
482
479
770

752
966
1,177
1,269

3,153
3,055
3,112
2.851

1,327
1,468
1,689
2,017

663
746
505

4,760
6,316
3,725
5,961

117
112
122
171

78
186
196
110

106
474
169
109

294
224
403
285

339
210
318
239

278
426
453

13,264
12,36.9

385
475
325
337

373
381
352
394

739
965
1,177
1,295

21,152
21,438
19,964
19,345

342
221
360
439

196
273
294
426

679
403
310
1,039

11,374
11,255
12,243
14,511

1,138
1,032
1,210
1,232

1,050
1,160
1,169

2,117
2,120
2,082
2,896

47,585
47,647
49,196
52,186

10,299

299

FEDERAL RESERVE BULLETIN.

JUNE 1,1916.

Amounts of acceptances (in the foreign and domestic trades) bought in open market by each Federal Reserve Bank during the
calendar year 1915, and for the four months ending April, 1916.
[In thousands of dollars.]
Atlanta
(includ- ChiNew PhilaRichBoston. York. delphia, Cleve- mond.
ing
land.
cago.
New
Orleans
branch).

Acceptances maturing—

Within 30 days:

101
64
50

1,246
587
909
680
23

741
1,000

545

3,445

2,713

215

2,137
102
41
98

2,377
621
313
520

1,464
43
36
1 835

746
42
30
70

235

765

335

214

480

2,513

4,596

3,713

1,102

480

After 60 days, but within 3 months:
Calendar Year 1915
11,471
2 681
Januarv 19^ 6
3,686
February 1916
5,913
March, 1916
1,497
April, 1916

22,211
2 686
4,157
6,978
5,690

5,406
151
396
2,183
2,655

2,116
267
395
579
684

250

25,248

41,722

10,791

4,041

January 1916
February 1916
March, 1916
April, 1916

- .

Total

497
48

. .

..

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

Total
Total acceptances bought:
Calendar year 1915
January, 1916
Februarv 1916
March 1916
.
April, 1916

. .

277

49,763

156

7
41
15

45
20
1

50

69
9

18
2

61
6
125
4

103

2,980
734
1 453
l',454
1,029

50

196

7,650

7

176

103

66

78

19
18
214

816
279
116
150
478

374
43
50
146

191
6
33
44.

750
13
13
107

137

153

183
55
22
151
115

277

9,057
1,204
654
3 1S9
3,403

251

1,839

750

427

526

1,160

17,457

46
>00
65
421
234

4,810
489
656
787
1,092

1,324
357
143
355
602

1,219
200
194
365
381

1,536
151
197
285
325

2,419
304
420
459
907

52,808
7 586
io!309
18,325
14,067

250

1,066

7,834

2,781

2,359

2,494

4,509

103,095

7,565
2,963
194 i 373
475
709
649
4 759
898
3,990

14,105 25,834
2; 831 3,894
3,727
5,379
6 011 8 178
1,732
6,478
28,406

Total

695

San
Total
Minne- Kansas
St.
for
Louis. apolis. City. Dallas. Francisco. system.

250
41
15
480

72
300
65
439
448

5,782
768
772
955
1,572

1,801
400
193
501

1,455
226
228
409

50

739

534

1,788
215
219
436
440

3,230
323
558
566
1,188

64,84.5
9,524
12,416
22 918
18' 499

5,358

786

1,324

9,849

3,634

2,852

3,098

50

5,865

128,202

17,217

56

9

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

Over $5,000 to
$10,000.

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

Acceptances by
classes.

If.

38
I ft

s ft

Over $100,000.

3 ft

Total.

B
<

Member banks
Trust companies
State banks
Private banks

155 $504,52.1
53 138,677
27 110,625
13 31,861

129 SI,096,454

671,970
24,600
161,585

163^2,843,558
62 1,380,417
24
101,250
36
641,510

1,135,869
51 $2.
34 1,491,010

.,625,618
19 $1
814,361

201,477

257,355

Total bankers'
acceptances.,
Trade acceptances....

248
21

785,684
61,667

242 1,954,809
39 350,672

285 4,966,735
28 453,381

3,828,356
67,828

32 2,697,334

11 3,332,850

847,351
4.6

281 2,305,281

313 5,420,116
29.3

94 3,896,184
21.0

32 2,697,334

11 3,332,850 1,00018,499,116 100.0
18.0
100.0

894 7,317,582 1,08219,660,600

29812,124,183

13210,690,804

Total bills
bought in
open market
Percent.

Total 4 months
ending April,
1,0183,125,893
1916

12.5

14.6

7 $2,375,312
'
957,538

524 $10,581,332
248 5,453,973
~'~
54 236,475
84 1,293,788

57.2
29.5
1.3
7.0

910 !17,565,568 95.0
90 2 933,548 5.0

4810,438,448 3,472 63,357,510

1 Of the above total, bankers' acceptances totaling $16,971,430 were based on imports and exports and $594,138 on domestic trade transactions.
2
Of the above total, trade acceptances totaling $926,147 were drawn abroad on importers in the United States and indorsed by foreign banks,
tiile $7,401 represents the amount of domestic trade acceptances bought in the open market during the month.




800

FEDERAL RESERVE BULLETIN.

JUNE 1, 1916.

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

Bank.

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

Bills bought in open
Bills
market.
discounted
for
mem- Bank- Trade
er's
ber
accept- Total.
banks. accept- ances.
ances.
419.8
150.0
922.7
407.4
3,331.0
1,553.6
1,808.5
240.6
121.9
564.1
1,876.2
125."

1,683.2
6,139.4
3,837.2
706.2
480.5
440.7
1,515.9
738.7
534.3
439.7
i,"049."8

City.

I~iss."6

1

All
other.

197.3

462.1

Total.

2 per
cent.

3 per
cent.

32.5 2,327.
5,837.4 879.
7.2
100.0 284.
18.9 1,496.8 596.
75.
50.4
6.1 694.
/
24.5 1,075. 9 1., 740.
40.5
263.5 331.
36.5 513.
1,513.
481.

"42L4

Total:
April, 1916... 11,521. 417,,565.6
'
933.5 18,499.1 9,113.1
April, 1915... 10,549.3 4,018.0
4,018.0
4 months ending Apr. 30,
1916
39,651.' 7 61
.,228.4 2,129.163,357.5 39,422.2
4 months ending Apr. 30,
1915
47,192.:115. 040.0
15,040.0
i,

2
3

State.

48.7 1,731.9
32.5
338.3 6,477.7 5,786.5 ...50.9
152.6 3,989.8
92.8
192.2
898.4 1,477.9
50.4
480.5
"'7*4
448.1
6.1
56.1 1,572.0
905.0 146.4
738.7
40.5
534.3
263.5
439.7
36.5
138.2

United States bonds and Treasury
notes.

Municipal warrants.

4 per Treasury
cent. notes. Total.

25.0

28.5

50. ( 9,361.0 9,436.1
3,196.6
750
75.0

155.0

75.0
710.0

53.5

940.0

133.0 40,018.1 28,013.0 2,962.38 3,828.0
19,606.0 5,561.75 1,070.0

Total investment
operations.

1916

4,511.2
13,344.6
5,296.5
3,628. 6
3,936.9
2,702.7
,6,197.1
1,019.8
1,354.2
434.5
2,263.3
1,223.0
1,513.75 3,389.95
481.25 2,216.25

2,327.0
879.5
1 284.0
50.0 2 826.0
75.0
3 694.9
1, 740. 7

50.010,479.6
75.0

1915

1,511.1
2,193. 7
968.6
1,182.2
3,166.2
1,857.2
991.0
557.7
554.4
785.4
2,651.9
1,419.5

49,861.1
17,838.9

50.0 34,853.38177,880.28
6,631.75

88,469.85

Sold 500j000 3 per cent conversion bonds of 1946.
Sold 200,000 3 per cent conversion bonds of 1946, also 250,000 3 per cent Treasury conversion notes.
Sold 61,500 2 per cent bonds of 1930.

Conversion of 2 per cent United States bonds into 30-year 3 per cent conversion bonds and 1-year 3 per cent Treasury notes.
United States 2 per
cent bonds converted into—
Bank.
30-year
conversion
bonds.

1-year
Treasury
. notes.

Boston
$250,000 $250,000
New Y o r k . . .
..
1,533,300 1,532,000
962,600
462,000
Philadelphia
200,000
200,000
Cleveland
457,800
456,000
Richmond
350,000
Atlanta (including New Orleans branch) 355,300
1,000,000
Chicago...
.




United States 2 per
cent bonds converted into—
Total
conversions.

$500,000
3,065,300
3,424,600
400,000
913,800
705,300
1,000,000

Bank.
30-year
conversion
bonds.
St Louis
Minneapolis.
Kansas City
Dallas
San Francisco
Total

1-year
Treasury
notes.

$381,700
349,300
410,600

$380,000
350,000
410,000

Total.
conversions.

S761,700
699,300
820,600

5,900,600 4,390,000 10,290,600

, 1916.

301

FEDERAL BESERVE BULLETIN.

FEDERAL RESERVE BANK STATEMENTS.
Resources and liabilities of each of the Federal Reserve Banks and of the Federal Reserve System at close of business on
Fridays, Apr. 28 to May 26, 1916.
RESOURCES.
[In thousands of dollars.]

Boston.

Gold coin and certificates
in vault:
Apr.28
May 5
May 12
May 19
May 26
Gold settlement fund:
Apr.28
May 5.
May 12
May 19
May 26
Gold redemption fund:
Apr.28
May5
May 12
May 19.....
May 26
Legal-tender notes, silver,
etc.:
Apr.28
May 5
May 12
May 19
May 26
Total reserve:
Apr.28
May 5
May 12
May 19
May 26
Bills discounted—Members:
Apr.28
May5
May 12
May 19
May 26
Bills bought in open
market:
Apr.28
May 5
May 12
May 19
M26
One-year Treasury notes:
Apr.28
May 5
May 12
May 19
May26
United States bonds:
Apr.28
May 5
May 12
May 19
May26
Municipal warrants:
Apr; 28
May5
May. 12
May 19
May26
Federal Reserve notes,
net assets:
Apr.28
May 5
May 12
May 19
May26
Due from other Federal
Reserve Banks, net:
Apr.28
May 5
May 12
-.
May 19
May 26
i Items




New
York.

6,123
5,600
5,509
6,670
7,042

140,410
138,830
144,036
145,142
142,261

9,774
10,218
9,939
11,958
10,381

8,602
8,073
4,093
2,045

San
St.
Chicago. Louis. Minne- Kansas Dallas. FranCity.
cisco.

Atlanta.

4,865
4,872
4,888
5,054
5,155

6,081
6,140
6,203
6,1.59

33,545
35,047
35,089
34,959
37,658

4,686
4,881
5,587
6,076
5,876

3,632
3,793
4,538
6,080
6,142

4,307
4,187
4,093
4,208
4,234

3,836
3,819
3,821
3,883
3,859

5,596
5,269
5,715
6,616
5,386

234,304
232,284
238,485
246,812
242,985

5,652 7,716 8,721
6,386 6,534 9,933
7,670 5,517 10,182
10,974 7,847 11,453
14,881 11,217 13,072

3,079
2,929
2,875
3,475
4,714

7,064
3,371
3,218
3,923
3,877

5,075
4,822
4,285
2,981
4,419

4,612
4,750
4,649
4,692
4,711

4,336
3,694
4,341
4,753
7,538

8,610
8,618
9,191
8,421

1,093
2,764
1,971
3,401
6,103

75,421
72,621
71,911
77,971
91,991

10
10
10
10
10

1,457
1,692
1,778
1,825
2,163

9,416
8,001
7,036
9,718
6,709

11,807
11,845
11,970
12,247
12,180

250
250
250
250
561

50
50
50
50
50

23
57
42
26
70

234
321
425
446
464

337
389
418
488
478

200
200
200
200
200

11
99
79
67
51

30
30
30
30
30

71
71
69
64
60

236
210
200
189
184

56
188
282
266

4,509
2,463
1,632
9,679
14,441

927
776
857
736

959
1,033
991
1,085
1,061

126
132
130
175
184

211
243
292
375
343

1,921
2,974
1,309
2,578
2,127

870
853
997
982
995

517
555
596
660
673

151
135
141
172
186

811
737
732
858
884

15,958
16,011
15,735
18,899
17,762

154,858
150,145
153,991
159,164
159,308

16,980
15,364
15,532
21,599
22,376

20,505
19,469
18,520
21,205
24,528

13,946 9,708
15,258 9,701
15,625 9,788
17,128 10,497
18,875 12,018

42,730
41,592
39,816
41,660
43,862

331
306
209
164
136

411
393
325
337
324

581
601
920
728
812

262
300
264
304
301

6,309
5,783
5,522
5,267
5,344

3,584
3,371
3,160
3,054
3,028

1,744
1,679
1,717
1,799
1,809

541
495
532
549
905

656
591
596
653
658

1,667
1,749
1,719
1,751
1,806

10,904
10,418
10,431
11,047
10,334

17,747
17,692
17,591
17,941
17,595

7,057
7,365
8,104
8,295
8,736

1,924
2,001
2,159
2,508
2,791

481
961

752
966
1,177
1,269
1,239

3,153
3,055
3,112
2,851
3,059

1,327
1,468
1,689
2,017
2,139

1,138
1,032
1,210
1,232
1,360

1,050
1,160
1,169
1,278

250
250
250
250
250

1,532
1,532
1,532
1,532
1,532

462
462
462
462
462

380
380
380
380
380

350
350
350
350
350

410
410
410
410
410

3,077
3,082
3,082
3,082

2,550
3,477
3,477
3,489
3,489

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

4,600
5,800
6,206
6,346
6,352

8,423
9,753
9,753
9,753
9,753

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

2,273
2,699
2,934
3,344
3,344

8,736
9,070
9,305
9,311
9,311

2,466
2,394
2,794
4,145
4,244

15,493
16,126
16,313
17,074
17,100

3,319
3,762
3,782
4,068
4,079

4,977
5,210
5,252
5,684
5,677

4,528
4,913
5,216
5,796
5,801

1,237
1,429
1,469
1,749
1,749

1,619
1,791
1,825
2,078
2,078

1,010
1,081
1,105

934
947
982
1,014
1,054

9,630
14,338
14,056
14,434
13,986

153
257
177
257
138

426
481

1,635
1,658
1,587
1,607
1,615

1,001
1,061
1,132
920
1,049

1,429
1,427
1,570
1,637
1,803

191
2,599
2,362
937
1,934
2,320
4,062
4,660
in transit, i. e., total amounts
1,877

Total
for
system.

Cleve- Richland. mond.

Philadelphia.

456
456
456
456
456

472
530

1,295
1,295
1,525
1,525
1,605

2,033
2,033
2,033
2,034
2,034

1,186
1,264
1,213
1,293
1,402

10,642 8,791 8,865
10,655 9,128 8,087
10,948 9,813 8,644
10,106 11,462 9,197
11,341 11,556 12,018

12,011
10,259
7,927
17,697
21,972

13,493 6,717
13,384 8,062
13,944 7*,745
13,351 10,037
13,960 11,507
4,931
4,577
4,606
4,774
4,837

323,193
316,856
320,101
344,305
359, 111

431
455
437
429
405

21,448
20,300
20,007
19,809
20,365

2,117
2,120
2,082
2,896
3,371

47,585
47,647
49,196
52,186
52,708
3,840
3,840
3,840
3,840
3,840

2,841
2,866
2,866
2,866
2,866

1,484 2,706 2,297 1,410
835 2,892
4,265 2,044 1,503 2,213
288
468 1,895
5,442 1,893 1,234 1,472
439
1,514 1,456
6,733 2,834
4,021 2,629 1,761
966 3,295 1,169
7,616 1,179
240
1,359 1,602
751 1,477
230
due from, less total amounts due to, other Federal Reserve Banks.

3,516
3,565
3,590
3,590
3,609

45,841
50,137
51,268
51,837
51,942

2,218
2,388
2,469
2,520
2,850

36,933
39,154
40,285
44,482
44,946

5,210
4,876
4,818

21,604
26,309
§,053
26,472

•4,838

4,856
3,555
2,563
3,487
3,565
2,131

* 14,658
117,328
115,752
i 19,448
U6,512

302

FEDERAL RESERVE BULLETIN.

Resources and KabUii

JUNE 1,1916.

each of the Federal Reserve Banks and of the Federal Reserve System at close of
Fridays, Apr. 28 to May 26, 1916—Continued.

on

R E S O URGE S—Continued.
[In thousands of dollars.]

Boston.

All other resources:
Apr. 28
,.
May 5
May 12
May 19
May 26
Total resources:
Apr. 28
May 5
May 12
-.
May 19
May26
•--..

New
York.

Philadelphia.

Cleveland.

Richmond.

Atlanta.

Chicago.

Minne- Kansos
St.
Louis. apolis. City. Dallas.

San
Francisco.

Total
for
system.

62
121
20
195
161

299
323
311
323
3,581

103
69
60
77
211

324
301
322
314
490

78
103
161
240
175

843
646
711
798

551
487
488
708
545

294
338
617
863
471

136
131
131
144
127

694
527
522
870
994

873
913
1, 164
1, 338
1, 663

276
164
184
122
93

4,533
4,123
4,691
5,992
9,493

35,859
34,157
34,440
41,116
41,683

202,520
204,026
207,596
214,294
216,915

32,384
34,017
34,937
40,958
44,414

33.853
34,030
34,755
40.854
42,028

25,516
25,330
25,286
28,266
28,923

18,346
18,269
18,521
20,706
20,943

64,248
67,402
67,131
70,907
74,080

21,087
20,829
21,619
22,377
22,172

18,689
18,652
19,663
21,866
22,027

23, 778
24, 187
24, 337
27, 311
28, 602

22 138
21 740
22, 580
23 498
23, 556

24,040
24,193
24,812
27,997
28,822

519,635525,694
531,193
568,371
585,350

Minne- Kansas
apolis. City. Dallas.

San
Francisco.

3,002
3,002
3,001
3,006
3,003

2,675
2,683
2,675
2,675

3,926
3,926
3,926
3,926
3,930

54,793
54,862
54,850
54,870
54,875

5,769
5,934
6,056
6,161
6,236

1,764
1 917
1,684
1,524
1,952

40,660
40,414
38,153
40,475
44,131

9,857 17,869
9,543 18,320
9,987 19,172
11,736 22,517
11,792 22,940

413,011
419,943
427,810
463,022
476,680

LIABILITIES.
[In thousands of dollars.]

Boston.

Capital paid in:
Apr.28
May 5.
May 12
May 19
May 26
Government deposits:
Apr.28
May5
May 1 2 . . .
May 19
Reserve deposits, net:
Apr.28
May5
May 12
May 19
May26.
Federal Reserve notes,
net liability:
Apr.28
May5
May 12
May 19
May 26
Federal Reserve bank
notes in circulation: '
Apr.28
May 5
May 12
May 19
May26
Due to other Federal Reserve Banks, net:
Apr.28
May 5
May 12
May 19
May26
All other liabilities:
Apr.28
May 5
May 12
May 19
May26
Total liabilities:
Apr.28
.May 5....
May 12
May 19
May 26




New
York.

Philadelphia.

Cleveland.

Richmond.

Atlanta.

Chicago.

St.
Louis.

4,950
4,950
4,952
4,943
4,943

11,299
11,299
11,282
11,283
11,283

5,216
5,216
5,214
5,216
5,216

5,948
5,948
5,944
5,965
5,966

3,346
3,344
3,344
3,348
3,350

2,408
2,469
2,470
2,469
2,469

6,670
6,672
6,673
0,673
6,672

2,788
2,788
2,787
2,792
2,794

•2,571

2,072
1,863
1,734
1,727
1,826

8,186
8,198
6,413
6,608
8,753

2,815
1,959
1,795
2,310
3,082

733
779
854
1,006
1,190

6,424
6,179
5,991
6,440
6,358

7,054
6,767
6,933
7,152
7,490

1,493
1,334
883
2,746
2,923

2,630
3,482
4,022
3,351
2,778

434
573
634
692
678

1,286
1,429
1,154
758

28,823
27,324
27.720
34,394
34,861

180,448
183,605
186,008
184,624
188,084

24,353
26,842
27,928
33,432
36,116

27,172
27,303
27,957
33,883
34,872

11,545
11,435
11,652
14,187
15,052

8,773
8,919
9,002
10,969
10,866

56,085
59,396
59,575
61,488
64,485

15,669
14.559
H, 810
16,234
16,600

15,684
15.506
10,455
18,600
18,795

16,733
17,191
17,544
20,958
22,257

4,156
4,328
4,252
4,239
4,108

2,573
2,574
2,574
2,574

871
887
853
745

3,607
3,374
3,263
2,926
2,853

8,851
8,573
8,402
8,018
7,705
1,669
1,694
1,751
1,736
1,732

694
1,751
751
1,736
1,732
2,587
924
3,893
11,779
8,795

236
214
591

14
20
34
52
53
35,859
34,157
34,440
41,116
41,683

45
44
47
52
55
202,520
204,026
207,596
214,294
216,915

Total
for
system.

32,384
34,017
34,937
40,958
44,414

111
114
116
116
118

33,853 25,516
34,030 25,330
34,755 25,286
40,854 28,266
42,028

18,346
18,269
18,521
20,706
20,943

481
30
30
30
64,248
67,402
67,131
70,907
74,060

21,087
20,829
21,619
22,377
22,172

18,689 23,778 22,138
18,652 24,187 21,740
19,663 24,337 22,580
21,866 27,311 23,498
22,027 28,602 23,556

651
208
227
250

24,040
24,193
24,812
27,997
28,822

519,635
525,694
531,193
568,371
585,350

303

FEDERAL BESERVE BULLETIN.

JUNE .1,1916.

Circulation of Federal Reserve notes at close of business on Fridays, Apr. 28 to May 26, 1916.
[In thousands of dollars.]

Boston.

New
York.

Philadelphia.

Cleveland.

Richmond.

Atlanta.

Federal Reserve notes issued to the bank:
Apr.28
May 5
May 12
May 19
May26
Federal Reserve notes in
hands of banks:
Apr.28
May 5
May 12.
May 19
May26..
Federal Reserve notes in
circulation:
Apr.28
May 5
May 12
May 19.
May26
Gold and lawful money
deposited with or to the
credit of t h e Federal
Reserve Agent:
Apr.28
May 5
May 12
May 19
May26
„
Carried to net assets:
Apr.28
May 5
May 12
May 19
May 26
Carried to net liabilities:
Apr.28
May 5
May 12
May 19
May26

10,788
10,740
10,683
10,614
10,558

70.791
73,307
72,942
72,645
74,742

6,806
6,778
6,606
6,566

10,542
10,513
10,484
10,455
10,428

10,828
10,690
10,620
10,526
10,350

14,678
14,634
14,561

934
947
982
1,014
1,054

9,630
14,338
14,056
14,434
13,986

153
257
177
257
138

426
481
518
472
530

464
292

9,854
9,793
9,701
9,600
9,504

61,161
58,969
58,211
60,756

6,653
6,521
6,429
6,309
6,347

10,788
10,740
10,683
10,614
10,558

70,791
73,307
72,942
72,645
74,742

10,542
6,778 10,513
6,606 10,484
10,455
10,428

934
947
982
1,014
1,054

9,630
14,338
14,056
14,434
13,986

153
257
177
257
138

Chicago.

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

San
Francisco.

Total
for

system.

14,.472
14,432

3,796
3,791
3,784
3,678
3,673

7,312
7,304
7,270
7,252
6,956

13,105
13,095
13,083
13,069
13,137

9,462
9,405
9,432
9,392
9,368

15,705
15,593
15,713
15,413
15,209

11,611
11,602
11,988
11,918
11,910

185,424
187,452
187,166
186,000
187,248

1,186
1,264
1,213
1,293
1,402

1,635
1,658
1,587
1,607
1,615

1,001
1,061
1,132
920
1,049

1,429
1,427
1,570
1,637
1,803

142
229
232
340

120
316
599
676
574

5,210
4,876
4,818
4,838
4,856

22,330
27,146
27,218
27,761
27,859

10,116 10,364 13,492
10,032 10,398 13,370
10,252 13,348
10,145 13;179
9,838 13,030

2,161
2,133
2,197
2,071
2,058

6,311
6,243
6,138
6,332
5,907

11,676
11,668
11,513
11,432
11,334

9,320
9,176
9,234
9,160
9,028

15,585
15,277
15,114
14,737
14,635

6,401
6,726
7,170
7,080
7,054

163,094
160,306
159,948
158,239
159,389

14,678
14,634
14,561
14,472
14,432

. 3,796
3,791
3,784
3,678
3,673

7,312
7,304
7,270

13,105
13,095
13,083
7,252 13,069
6,956 13,137

!,232
!,305
!,347
!,307
5,028

11,978
11,903
11,851
11,811
11,782

11,611
11,602
11,988
11,918
11,910

175,847
178,042
177,599
176,693
178,116

1,186
1,264
1,213
1,293
1,402

1,635
1,658
1,587
1,607
1,615

1,001
1,061
1,132
920
1,049

5,210
4,876
4,818
4,838
4,856

21,604
26,309
26,053
26,472
26,433

381
512

6,070
6,000
5,906
5,730

426
481
518
472
530

1,429
1,427
1,570
1,637
1,803

4,156
4,328
4,252
4,239
4,108

871
887
853
745

3,607
3,374
3,263
2,926
2,853

8,851
8,573
8,402
8,018
7,706

Statement of Federal Reserve Agents' accounts at close of business on Fridays, Apr. 28 to May 26,1916.
[In thousands of dollars.]

Boston.

Federal Reserve notes:
Received from ComptrollerApr. 28
May 5
May 12
May 19
May 26
Returned to Comptroller—
Apr.28...
May 5
May 12
May 19
May 26
Chargeable to Federal
Reserve A g e n t Apr. 28
May 5
May 12
May 19
May26




New
York.

Philadelphia.

Cleveland.

Richmond.

San
St.
AtMinne- Kansas
lanta. Chicago. Louis. apolis. City. Dallas. Francisco.

20,380
20,380
20.380
20,380
20,380

114,240
114,240
116,240
116,240
116,240

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

13,360
13,360
13,360
13,360
13,360

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

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

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

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

2,112
2,160
2,217
2,286
2,642

25,449
25,733
26,098
26,395
26,698

2,581
2,609
2,781
2,821
2,902

1,118
1,147
1,176
1,205
1,232

2,772
2,910
2,980
3,074
3,250

1,626
1,670
1,743
1,832
1,872

703
708
715
821

526
534
568
586
882

18,268
18,220
18,163
18,094
17,738

88,791
88,507
90,142
89,845
89,542

12,899
12,871
12,699
12,659
12,578

12,242
12,213
12,184
12,155
12,128

14,228
14,090
14,020
13,926
13,750

18,774
18,730
18,657
18,568
18,528

8,677
8,672
8,665
8,559
8,554

9,074
9,066
9,032
9,014
8,718

19,000
19,000'
19,000
19,000
19,000

Total
for
system.

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

22,140
23,580
23,580
23,580
23,580

12,160
12,160
12,560
12,560
12,560

286,140
287,580
289,980
289,980
289,980

185
195
207
221
233

545
602
650
690
714

1,341
1,560
1,613
1,653
1,682

549
558
572
642
650

39,507
40,386
41,320
42,226
43,583

18,815
18,805
18,793
18,779
18,767

12,455
12,398
12,350
12,310
12,286

20,799
22,020
21,967
21,927
21,898

11,611
11,602
11,988
11,918
11,910

246,633
247,194
247,754
246,397

304

FEDERAL RESERVE BULLETIN.

JUNE 1,1916.

Statement of Federal Reserve Agents' accounts at close of business on Fridays, Apr. 28 to May 26, 1916—Continued.
[In thousands of dollars.)

Boston.

Federal Reserve notesContinued.
In hands of Federal
Reserve Agent—
Apr.28
May 5...
May 12
May 19
May26
Issued to Federal
Reserve bank, n e t Apr. 28....
May. 5
May 12
May 19
May26
Amounts held by Federal
Reserve Agent:
In reduction of liability on outstanding
notesGold coin and cert i f i c a t e s on
handApr. 28
May 5
May 12
May 19
May26
Credit balances
in gold redemption bond—
Apr.28
May 5
May 12
May 19
May26
Credit balances
with Federal
R e s e r v e
BoardApr. 28
May 5
May 1 2 . . . . . . .
May 19
May26
As security for outstanding notesCommercial paper—
Apr.28
May 5
May 12
May 19
May26
TotalApr. 28
May 5 . . . . . . . .
May 12
May 19.......
May26
Memorandum:
Total amount of commercial paper delivered to Federal
Reserve AgentApr. 28
May 5
May 12
May 19
May26




New
York.

Philadelphia.

Cleve- RichAtland. mond. lanta.

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

Total
for
system.

7,480
7,480
7,480
7,480
7,180

18,000
15,200
17,200
17,200
14,800

6,093
6,093
6,093
6,093

1,700
1,700
1,700
1,700
1,700

3,400
3,400
3,400
3,400
3,400

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

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

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

5,710
5,710
5,710
5,710
5,630

2,993
2,993
2,918
2,918
2,918

5,094
6,427
6,254
6,514
6,689

10,788
10,740
10,683
10,614
10,558

70,791
73,307
72,942
72,645
74,742

10,542
6,778 10,513
6,606 10,484
6,566 10,455
6,485 10,428

10,828
10,690
10,620
10,526
10,350

14,678
14,634
14,561
14,472
14,432

3,796
3,791
3,784
3,678
3,673

7,312
7,304
7,270
7,252
6,956

13,105
13,095
13,083
13,069
13,137

9,462
9,405
9,432
9,392

15,705
15,593
15,713
15,413
15,209

10,200
10,200
9,700
9,700
9,700

67,917
70,717
70,717
70,717
73,117

3,360
3,360
3,360
3,360

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

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

10,140
10,040
10,040
10,040
10,120

3,780
3,910
4,000
4,000
4,000

9,540
9,540
9,540
9,540
9,540

2,874
2,590
2,225
1,928
1,625

508
476
436
355

842
813
784
755
728

332
424

552
495
447
407
583

783
731
791
762

241
232
218
358
350

9,210

372
356

615
705
693
679
667

3,410 4,130
3,410 §4,030
3,410 4,030
3,310 4,030
3,310 3,750

2,350
2,350
2,350
2,350
2,350

3,900
3,900
3,900
3,900
3,700

1,630
1,580
1,580
1,480
1,480

11,370
11,370
11,770
11,560
11,560

49,150
48,730
48,890
48,480
47,570

1,230
1,100
1,085
1,085
1,085

3,727
3,690
3,862
3,602
3,427

9,462
9,405
9,432
9,392
9,368

15,705
15,593
15,713
15,413
15,209

1,235
1,104
1,097
1,097
1,085

4,122
4,248
4,188
4,336
4,189

540
914
858

3,110
2,910
2,770
2,770
2,770

408
340
370
276
530

1,228
1,184
1,111
1,022

5,800
5,730
5,630
5,630
5,200

13,450
13,450
13,450
13,450
13,450

381
374
363

4,620
4,620
4,620
4,620
4,620

10,788
10,740
10,683
10,614
10,558*

70,791
73,307
72,942
72,645
74,742

10,542 10,828 14,678
6,778 10,513 10,690 14,634
6,606 10,484 10,620 14,561
6,566 10,455 10,5,26 14,472
6,485 10,428 10,350 £14,432

4,885
4,626
4,927
5,287
,934

3,796
3,791
3,784
3,678
3,673

7,312
7,304
7,270
7,252
6,956

13,105
13,095
13,083
13,069
13,137

61,209
59,742
61,494
61,754
59,149
11,611
11,602
11,988
11,918
11,910

185,424
187,452
187,166
186,000
187,248

117,487
120,317
119,907
119,907
122,387

8,152

9,577
9,410
9,567
9,307
9,132
11,611
11,602
11,988
11,918
11,910

185,424
187,452
187,166
186,000
187,248

10,242
9,978
10,212
10,720
10,208

305

FEDERAL RESERVE BULLETIN.

JUNE 1,1916.

GOLD IMPORTS AND EXPORTS.
Imports of gold, by customs districts, Jan. 1 to May 19, 1916.
[In thousands of dollars.]

•aw
3

r

1

i

Week ending Apr. 28.
Ore and base bullion.
Bullion, refined
Foreign coin

14

Total

18

2
249

25

175
75

52

380
447
197

14

122
196

18

251

25

250

52

1,024

38

43

41

25

245

Week ending May 5.
Ore and base bullion
—
United States mint or assay office
bars
Bullion, refined
United States coin
Foreign coin
Total

43

37

12
283
5
195

12

242
"195
480-

80

740

25

53

Week ending May 12.
Ore and base bullion
United States mint or assay office
bars.
Bullion, refined
United States coin
Foreign coin
Total

82

18

78

332

203
58

171

.1,821
.1,750
509

2,051
1,750
704

38 4,080

5,040

52

313
7,152
1
170

195
462

82

17
404
1
146

112

78

261

Week ending May 19.
Ore and base bullion.
Bullion, refined
United States coin
Foreign coin
Total

52
70

.6,676
*24"

568

11

112

52 6,700

122

7,636

January 1 to May 19.
Ore and base bullion
United States mint or assay office
bars
a
Bullion, refined
United States coin
Foreign coin
Total.




961
6,288

132

266

27

96

655

1,156

2,674

375
55

33

20,937
28,285

66

557

116

. 1,330

. 8,497
.1,777
544

766

4,867
33

146

348

8,196

1,586 2,653

4,747

738

116

738 10,818

1,330
18,715
1,970
26,358
53,120

306

FEDERAL RESERVE BULLETIN.

JUNE 1^1916.

Exports of gold, by customs districts, Jan. 1 to May 19, 1916.

Total.

Vermont.

St. Lawrence.

Montana and
Idaho.

Michigan.

Dakota.

Buffalo.

Washington.

San Francisco.

Hawaii.

Alaska.

Porto Rico.

New York.

Maine
and
New Hampshire.

[In thousands of dollars.]

Week ending Apr. 28.
Ore and base bullion
United States mint or assay office
bars
Bullion, refined, domestic . . .
United States coin..
Foreign coin

8

8
5

5

993
10
4,308
1,005

5

5

6,324

1
3

2
22
1,101
1,083

4

2,208

2

654
581
695

2

1,930

993
624
1,000

3,675
5

1,624

Total

9
9

4,673

8

Week ending May 5.
Ore and base bullion
Bullion refired domestic
United States coin
Foreign coin. .

2
21

1,079
1,078

10
2

10

2,157

Total

2
2

35

10

Week ending May 12.
Bullion refined domestic
United States coin
Foreipn coin

16

638
577
695

1,910

Total

2
2

16

Week ending May 19.
United States mint or assay office
bars...
Bullion refined domestic
United States coin.
Foreipn coin

1
17

2

1

70

1,018

507

18

17
103
896

3

1

996

Total

1
2

100
896

4,378

64

Jan. 1 to May 19.
Ore and base b u l l i o n . . . . . .
United States mint or assay office
bars
Bullion, refined:
Domestic
Foreign
.
United States coin.
Foreign coin
Total




2

11

147

758

3,339
1/438
10,305
15,630
2

3,044
701

1

156

1

83

10,722
5

10

19
3

12

83

14,472

81

311

13

31,470

15
15

11

69

19

7

1

1,016
1,384

750

1

2,926

757

12

3

15

4,236
1,438
22,933
17,025
50,157

307

FEDERAL RESERVE BULLETIN.

JUNB 1,1916.

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

Bills bought
in open
market.

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

$295,129
499,967
484,626
436,402
6,227,049
3,726,791
1,981,379
573,899
773,000
1,848,310
4,724,098
475,000

$11,421,238
16,530,707
5,972,125
1,688,989
54,048
783,749
2,594,358
1,175,436
998,300
934,421
1,997,000

Total...,

21,955,650

44.150,371

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

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

1,346.00
1,487.05
1,469.85
20,044.27
10,835.21
7,489.41
2,070.76
3,076. 87
7', 247.96
17,134. 74
1,947.30

27, 728.04
9,961.38
2,705.14
175.16
1,675.71
4,297.02
1,973.16
1,644.36
1,557.26
3,286.46

Total....

75,015.85

73,872.92

United
States
bonds.

$2,523,609
15,095,063
3,318,705
4,869,198
61,913
3,645
3,910,882
1,250,921
1,433, 700
1,004,196

United
States
bonds.

Total.

2,231,000

$3,218,267
3,971,550
4,175,070
4,180,767
1,731,000
1,993,333
8,153,150
3,339,000
2,396,800
8,547,400
2,533,333
3,317,000

$17,458,243
36,007,287
13,950,526
11,175,356
8,074,010
6,447,518
16,639,749
6,339,256
5,601,800
12.334,327
7; 257,431
8,020,000

35,702,812

47,496,670

149,305,503

Calculated annual rate of earnings from—

Total.

4,094.13

$5,725.83
9,283.10
7,818. 79
8,933.74
3,605.96
3,163.21
16,449.23
6,109. 72
4, 798. 38
14,987.99
4,686.05
5,410.52

$29,998.37
66,791.13
25,618. 95
23,298.24
23,984,83
15,686.24
35,615.55
12,399.20
12,250.09
25,585.02
21,820. 79
14,738.41

67,925.53

90,972.52

307,786.82

$4,536.88
28,433. 99
6,351. 73
10,189. 51
159. 44
12.11
7,379.89
2,245.56
2,730.48
1,791.81

Municipal
warrants.

Bills reBills
disbought Municicounted, in open pal warmembers. market. rants.

United
States
bonds.

All investment
operations.

Per cent. Per cent. Per cent. Per cent.' Per cent.
3.58
2.02
2.19
2.17
2.10
4.00
2.05
2.30
2.85
2.25
3.74
2.03
2.33
2.28
2.24
4.11
1.95
2.55
2.67
2.54
3.93
3.95
3.14
2.54
3.62
3.55
2.59
4.05
2.00
2.97
4.61
2.02
2.30
2.46
2.61
4.40
2.05
2.19
2.23
2.39
4.86
2.01
2.32
2.44
2.67
4.78
2.03
2.18
2.14
2.53
4.44
2.22
3.67
5.00
1.99
2.24
2.00
2.24
4.17

2.04

2.32

2.34

2.50

NOTE.—With the view of insuring uniform treatment of the items reported by all banks, the average yearly rates were obtained through
multiplying all the calculated average monthly rates by the fraction 366/30. It is thought that on the whole the results thus obtained provide
a satisfactory basis for comparison between the individual banks.




308

FEDERAL RESERVE BULLETIN.

JUNE 1, 1916.

DISCOUNT RATES.
Discount rates of each Federal Reserve Bank in effect May 25, 1916.
Trade acceptances.
AgriculMaturities Maturities Maturities Maturities tural and
of over 10 of over 30 of over 60 live-stock
of 10 days to 30 days, to 60 days, to 90 days,
and less. inclusive. inclusive. inclusive. paper over To 60 days, Over 60 to
90 days,
inclusive. inclusive.
90 days.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Atlanta (New Orleans branch).
Chicago
St. Louis
Minneapolis
Kansas City
;
Dallas
San Francisco

3
3

31
3 3£-4

Commodity
paper.

Paper
bought
in open
market.

13

2 31-51

43

31
31

3-5

8*

1 Rate for commodity paper maturing within 90 days.
Rate for bills of exchange in open market operations.
Rate for trade acceptances bought in open market without member bank indorsement.
A rate of 2 to 4 per cent for bills with or without member bank indorsement has been authorized.
Rate for commodity paper maturing within 30 days, 31 per cent; over 30 to 60 days, 4 per cent; over 60 to 90 days, 4J per cent; over 90 days,
5 per cent.
2
3
4
5




INDEX.
Page.

Page.

Acceptances, distribution of, by sizes, maturities,
etc
298-300
Business conditions throughout the 12 Federal
Reserve districts
275-292
Clearing and collection plan, inauguration of,
deferred
262-264
Commercial failures in 1916
267
Commercial paper discounted.
294-296
Discounts, distribution of
293-297
Discount rates in effect
308
Earnings on investments of Federal Reserve Banks. 307
Federal Reserve Bank statements
301-304
Fiduciary powers granted
^.
266
Gold imports and exports
305, 306
Gold settlement fund
268-270
Informal rulings of the Board:
Loans and discounts
*
272
Loans on farm lands
272
Tax on Federal Reserve notes
273

Informal rulings of the Board—Continued.
Real estate loans
273
Federal Reserve Bank notes
273
Intradistrict clearing system, additions to and
withdrawals from
267
Law department:
Limit on rediscounts of commercial or business
paper
274
Member banks granted authority to accept up to 100
per cent
265
National banks, net increases in capitalization.. 265,266
Rediscounts by depositaries of Indian funds
266
Resources and liabilities of Federal Reserve Banks. 301,302
United States bonds:
Conversion of
300
Sale of, through Treasurer of United States.. 264,265
Wisconsin banks, petition of, for transfer to Chicago
district, denied
264
Work of the Board
261




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Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102