Full text of Federal Reserve Bulletin : June 1920
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FEDERAL RESERVE BULLETIN ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON JUNE, 1920 WASHINGTON GOVERNMENT PRINTING OFFICE 1920. FEDERAL RESERVE BOARD. EX OPFICIO MEMBERS. W. P. G. HARDING, Governor. ADOLPH C. MILLER. DAVID F. HOUSTON, Secretary of the Treasury, Chairman. CHARLES S. HAMLIN. H E N R Y A. MOEHLENPAH. JOHN SKELTON WILLIAMS, Comptroller of the Currency. EDMUND PLATT. GEORGE L. HARRISON, General Counsel. W. W. HOXTON, Executive Secretary. W. T. CHAPMAN, Secretary. R. G. EMERSON, Assistant Secretary. "EL. PARKER WILLIS, W. M. IMLAY, Fiscal Agent. Director, Division of Analysis and Research. W. W. PADDOCK, ChieJ\ Division of Examination. J. E. CRANE, Acting Director, Division of Foreign Exchange. M. JACOBSON, Statistician. E. L. SMEAD, Chief, Division of Reports and Statistics. OFFICERS OF FEDERAL RESERVE BANKS. Federal Reserve Bank of— Chairman. Governor. Boston New York Frederic H. Curtiss... Chas. A. Morss Benj. Strong, jr. 1 Pierre Jay Philadelphia Cleveland R. L. Austin D.C.Wills Richmond Caldwell Hardy C. C. Bullen J. H. Case2 L. F. Sailer3. E. R. Kenzel E. R. F a n c h e r . . . . . . . M. J. Fleming Frank J. Zurlinden 4 .. Geo. H. Keesee. C. A. Peple George J. Seay Joseph A. McCord Wm. A. Heath M. B. Wellborn J. B. McDougal St. Louis Minneapolis... Kansas City ... Dallas San Francisco Wm. McC. Martin.... John H. Rich Asa E. Ramsay Wm. F. Ramsey John Perrin D. C.Biggs R. A. Young J. Z. Miller, jr R. L. Van Zandt J. U. Calkins... Acting governor. «Controller. TT "R vr»O ri ri n « A. S. Johnstone4 L. C. Adelson C. R. McKay Atlanta Chicago 2 W. Willett. L. H. Hendricks.3 J. D. Higgins.3 3 Channing Rudd. A. W. Gilbart.3 3 Leslie R. Rounds. J. W. Jones.3 W. A. Dyer. H. G. Davis. George W. N o r r i s . . . . Wm. H. Hutt, jr 4 T> * On leave of absence. Cashier. Deputy governor. M. W. Bell. S. B. Cramer. 0. M. Attebery J. .W. White. S. S. Cook. J. W. Helm. Sam R. Lawder. W. N. Ambrose. C. A. Worthington Lynn P. Talley Wm. A. Day Ira Clerk 5 ... 6 C. H. Stewart . < Assistant to governor. 5 Assistant deputy governor. MANAGERS OF BRANCHES OF FEDERAL RESERVE BANKS. Federal Reserve Bank of— New York: Buffalo branch Manager. Ray M. Gidney. Cleveland: Cincinnati b r a n c h . . . . . L. W. Manning. Pittsburgh branch Geo. De Camp. Richmond: Baltimore b r a n c h . . . . . . Morton M. Prentis. Atlanta: New Orleans branch Jacksonville branch.... Birmingham branch Nashville branch Marcus Walker. Geo. R. De Saussure. A. E. Walker. Bradley Curry. ijjiicago. Detroit branch R. B. Locke. Federal Reserve Bank of— Manager. St. Louis: Louisville branch W. P. Kincheloe. Memphis branch J. J. Heflin. Little Rock branch.... A. F. Bailey. Kansas City: Omaha branch Denver branch L. H. Earhart. Dallas: El Paso branch Houston branch W. C. Weiss. E. F. Gossett. C. A. Burkhardt. San Francisco: Los Angeles branch.. -. C. J. Shepherd. Portland branch... Frederick Greenwood (acting). Salt Lake City branch.. R. B. Motherwell. C. A. McLean (acting). Seattle branch W. L. Partner (acting). Spokane branch. 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. It is the Board's medium of communication with member banks of the Federal Reserve System and is the only official organ or periodical publication of the Board. In sending the BULLETIN to individuals other than those named or to nonmembers of the system 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 officers and directors may have it sent to not less than 10 names at a subscription price of $1 per annum. No complete sets of the BULLETIN for 1915, 1916, or 1917 are available. in TABLE OF CONTENTS. Review of the month Business, finance, and industry, May, 1920 Wholesale trade activity in the West Level of interest and discount rates Effect of the railroad strike Financial conference with Federal Advisory Council and Class A directors Methods followed by city banks in granting accommodation to correspondents Banking and financial conditions in Argentina Report of the German Reichsbank for the calendar year 1919 Debits to individual account, January, 1919, to May, 1920 Official: Foreign branches of American banks State banks and trust companies admitted to the system. Banks granted authority to accept up to 100 per cent of capital and surplus Charters issued to national banks Fiduciary powers granted to national banks Rulings of the Federal Reserve Board Law Department: Exercise of trust powers by national banks located in Connecticut Miscellaneous: Discount policy of Federal Reserve Banks, response to a Senate resolution Winter wheat forecast Commercial failures reported Statistical: Wholesale prices in the United States Retail trade index International price index Wholesale prices abroad Discount and interest rates prevailing in various centers Physical volume of trade Gold settlement fund Debits to individual account, March and April Discount and open-market operations of the Federal Reserve Banks Operation of the Federal Reserve clearing system Resources and liabilities of the Federal Reserve Banks Federal Reserve note account Condition of member banks in selected cities Imports and exports of gold and silver Estimated stock of money in the United States Earnings and dividends of State bank and trust company members Discount rates approved by the Federal Reserve Board Diagrams: Debits to individual account, January, 1919-May, 1920 Par point map IV 553 567 570 571 574 579 584 592 601 603 606 607 608 609 608 609 610 582 606 609 , 611 614 616 616 622 624 633 635 638 642 645 649 651 657 659 660 659 605 644 FEDERAL RESERVE VOL. 6 JUNE, 1920. REVIEW OF THE MONTH. Treasury finance during the month of May has involved no striking deTreasury fi- partures from the condition of nance. affairs established during April. Expenditures exclusive of public debt transactions during the month amounted to $395,475,235.43, while receipts on the same basis amounted to $257,501,375.32, leaving a deficit of $137,973,860.11. On May 17, an issue of Treasury certificates of indebtedness amounting to $102,863,000 was placed on the market at 5J per cent, the subscriptions growing out of it amounting in the aggregate to $125,000,000. Interest payments on the second Liberty loan were payable on May 15, the total amount due being $71,224,000. Inasmuch as May 15 wTas the latest date for the conversion of the second 4 per cent Liberty bonds into the 4J per cent issue, coupons on the old bonds having been exhausted at the last interest period, the process of conversion during the early part of May was actively carried forward. The bulk of the new bonds issued were at the 4J per cent rate, only a relatively small percentage being reissued as 4 per cent bonds. The Government's retention of the funds necessary for the settlement of its interest indebtedness on this bond issue was assigned in some quarters as the cause of unusual stringency developing in the money market during the few days prior to May 15. This stringency, however, became considerably greater after the disbursement of the interest than it was before, thus again indicating the fact already frequently noted that under existing banking organization payments to and out of the Treasury are book transfers and have no material or direct effect upon the money situation. BULLETIN No 6. The fact that the receipts of the department are now less than expenditures has been called to the attention of Congress by Secretary Houston in a letter of May 19, in which he stated to Chairman J. W. Fordney, of the Ways and Means Committee, that recent railroad laws will entail an expenditure of approximately $1,000,000,000, and referred also to the delay in making provision to realize upon the Government's investments in railroads and ships. Of the current financial situation, he says, " I t is no longer possible to finance the current needs of the Government in part by the issue of Treasury certificates except on onerous terms which reflect upon the value of the Government's bonds and depreciate them in the market. It is a matter of serious concern to have the Government appearing in the market every few weeks for loans. Certainly nothing ought to be done to increase the existing credit expansion that can be possibly avoided." The intensity of the demand for credit acThe credit commodation throughout the problem. country has been reflected during the month in the continuance of the large volume of paper presented for rediscount at Federal Reserve Banks. This volume has naturally varied in its extent, according to conditions prevailing in the several districts. In spite of the effort pi Federal Reserve Banks to discourage rediscounting paper, the total amounts of discounted and purchased bills held by the Federal Reserve Banks during the month show but slight changes. The following table furnishes a brief review of the situation at Federal Reserve Banks, presenting a comparative statement of the total reserves, bills held, and net deposits in the several districts, 553 554 FEDERAL RESERVE BULLETIN. JUNE, 1920. between the first and last reporting periods for where adopted, operated in the same way as an advance in the rate of discount. In the the month: discounting of foreign bills rates have shown [In thousands of dollars.] a strong upward tendency, while the commercial paper market has found difficulty in absorbTotal reserves. ing even the choicer offerings and has been Apr. 30. May 7. May 14. May 21. May 28. obliged to advance rates to a level not reached during recent years. The best commercial 199,847 185,766 185,633 191,814 195,591 paper has been selling on a basis of 7\ to 8 Boston 638,998 655,749 649,167 668,733 674,138 New York 139,173 137,577 140,693 137,892 140,669 Philadelphia 225,033 223,699 229,874 214,078 227,547 per cent, with the tendency still decidedly Cleveland 75,375 75,448 75,915 74,100 68,980 Richmond In the call market a more moderate 81,107 80,023 83,492 80,746 80,236 upward. Atlanta 310,466 308,218 312,532 313,287 308,800 Chicago level of rates than during some preceding 81,417 80,131 76,597 76,828 76,124 St. Louis 50,720 52,924 50,223 53,890 51,575 months has prevailed. Minneapolis Although at times 75,088 77,082 75,834 78,735 74,383 Kansas City 51,218 49,283 50,237 53,722 50,204 the charge for call money has gone as high Dallas 142,884 141,988 147,635 143,912 144,249 San Francisco 2,070,765 2,076,087 2,078,393 2,079,538 2,092,496 as 12 per cent, it has during much of the Total month ranged between 6 and 8 per cent. This relative moderation in rates has been due to Net deposits. the diminution of speculative activity which Apr. 30. May 7. May 14. May 21. May 28. has been noted on the exchanges of the counTransfers on the New York Stock Ex110,219 105,529 118,623 115,369 116,153 try. Boston 764,162 738,022 767,744 732,474 757,986 New York 99,838 97,025 103,283 102,398 101,133 change have been on some days lower than at Philadelphia 139,942 135,010 132,486 129,278 131,023 Cleveland 53,382 51,334 51,300 49,180 Richmond 50,839 any time since February, 1919, while quota55,786 54,160 54,353 53,374 Atlanta 53,287 249,845 236,672 245,465 236,528 237,910 tions have during most of the period tended Chicago 66,445 66,655 59,540 64,703 St. Louis 60,876 There has been a decided reduc45,543 47,763 46,445 48,130 Minneapolis 46,737 downward. 84,478 85,909 83,339 85,884 Kansas City 84,986 44,238 42,701 44,026 47,853 Dallas 41,181 tion in the volume of securities speculation 109,723 112,915 121,882 119,810 112,329 San Francisco since the opening of the year, and the volume 1,812,732 1,774,297 1,839,355 1,784,379 1,794,440 Total of loans on stocks and bonds in New York City, which during the summer of 1919 was estimated Total bills on hand. in the New York market as high as $1,500,000,Apr. 30. May 7. May 14. May 21. May 28. 000, has at times during the month of May been about two-thirds of that sum. Boston 185,668 198,708 211,839 204,957 204,576 In spite, however, of this shrinkage of securiNew York.. 960,655 984,310 975,773 1,005,180 1,017,207 Philadelphia 212,038 209,162 216,722 215,537 216,046 Cleveland 232,021 230,011 222,550 232,348 226,590 ties speculation, the growth of demand upon Richmond 106,370 105,115 106,505 103,894 109,404 Atlanta 121,537 123,215 123,521 123,303 122,202 Federal Reserve Banks for credit for commerChicago 479,047 471,403 479,351 476,887 482,932 St.fLouis 113,758 119,115 114,631 115,260 113,576 cial use has absorbed the funds realized from Minneapolis 80,692 80,101 80,319 81,596 80,178 Kansas City 111,086 110,680 112,479 111,728 113,279 the reduction of speculative commitments, and Dallas 75,542 77,891 75,648 75,520 75,046 San Francisco 206,470 213,064 215,570 217,436 209,892 this increasing drain upon resources has been 2,942,318 2,914,456 2,964,582 2,917,754 2,938,031 evidenced by a slight tendency on the part of Total the reserve ratio to fall off. For the month of May the reserve ratio, which during April This growth of demand for bank accommoda- averaged over 43 per cent, has fallen off about tion has inevitably operated to raise rates of one-half point, as is shown by the following interest both in the investment and in the figures: commercial paper market. While many banks have maintained a 6 per cent rate to their cus- Ratio of total reserves to net deposit and Federal Reserve note liabilities in 12 Federal Reserve Banks, tomers, as in some States required under the Per cent. law to do, the practice pursued by not a few May 7 42.7 institutions of calling for the maintenance of May 14 42.2 heavy balances and of declining loans in cases May 21 42.7 where such balances were not maintained has, Mav28 42.7 One illustration of the difficult character of interest and investment conNew Liberty ditions is afforded by the fact bond prices. that during the month of MayLiberty bonds reached new low quotations, touching on May 19 the following levels: May 19. High. Liberty 3i's Liberty first 4's.. Liberty second 4's Liberty first 4£'s.. Liberty second 4^' Liberty third 4*'s. Liberty fourth 4J's Victory 4|'s Victory 3|'s 90.80 83.30 82.40 84.60 82.60 86.60 83.00 95.00 94.96 Low. 90.26 83.00 81.90 84.50 82.20 86.30 82.50 94.92 94.86 May 29. High. 91.80 87.60 87.14 87.90 87.70 91.60 88.40 96.08 96.62 Low. 91.50 87.54 86.40 87.50 86.98 91.10 87.70 96.00 95.94 downward in a series of narrow trading sessions marked by little public following. Many stocks of investment character, which had shared only to a limited extent in the rapid rise culminating about the middle of April? have alike with speculative issues declined to new low levels for the year. Heaviness of preferred stocks parallels the situation in the bond market, where older seasoned securities are being sold to obtain funds difficult to borrow under present money market conditions, and for the purpose of switching into new, high interest bearing issues. That many of the preferred stocks have recently reached lowest levels recorded thus far this year, while their junior issues, in many cases, continue to sell above the low prices of February and March, indicates that many buyers still prefer a speculation to an investment. The development of certain abnormal de_ . ,. mands and their influence upon aj Strain on credit. The pronounced fall in the quotations of the bonds is attributed by financial authorities to large realizing sales originating with certain classes of bondholders who found these the cheapest and easiest way of obtaining funds of which they stood in need. That such was the case was indicated by the prompt recovery of the bonds to higher levels at the end of the month, as shown by the quotations just given. A fundamental element in the present situation is the fact that producers who have found themselves insufficiently supplied with capital or who have been unwilling to submit to the onerous conditions of obtaining capital which now exist have been disposed to apply to the banks for current loans in order to meet their requirements for working capital. How far the present loans of the banks represent advances of this kind it would be impossible to say, but the weekly returns made by member banks in 100 selected cities show that these banks are now carrying some $3,100,000,000 of advances secured by corporate stocks and bonds. In this connection it is worth noting that marked decline in available investment capital has been a notable feature of the month and has correspondingly increased the difficulties of borrowers in obtaining the funds they need to meet capital requirements. The condition of affairs in the New York market has been commented upon by the Federal Reserve Bank of New York as follows: Heavy liquidation in the stock market, noted at the close of the preceding period, ran most of its course in the latter part of April, and since then prices have drifted 555 FEDERAL RESERVE BULLETIN. JUNE, 1920. ., • ,., ., ,. , , the credit situation have been observed within the past month and their character carefully analyzed. They have been found to include, in addition to the familiar elements frequently referred to in the past, a number of important new ones. Considerable amounts of goods have been withheld from the market in the hope of higher prices and have been financed with bank credit. This has resulted in inflating credit in a substantial degree, the continuous carrying of goods which have thus been hoarded preventing the considerable amount of liquidation which would ordinarily take place. On the other hand, large amounts of goods have accumulated at various places as a result of the limited railroad transportation of the past month and have operated to bring about a condition of increased strain upon bank credit. As a result of this situation, full and effective operation of the railroads has become necessary in order to enable remedial banking measures to produce their best result. Loans obtained with the idea of conducting operations which directly or indirectly might result in the charging of excessive prices to consumers have tended to aggravate conditions, while, on the other hand, loans secured by unduly long-term and speculative securities have exerted a somewhat similar influence. As pointed out by bankers recently in conference with the Federal Reserve Board, "The whole country is suffering from inflation of prices with the consequent inflation of credit. * * * Great sums are tied up in products which, if marketed, would relieve necessity, tend to reduce the price level, and relieve the strain on 556 FEDERAL RESERVE BULLETIN. our credit system. This congestion of freight is found in practically all of the large railroad centers and shipping ports. It arises chiefly from inadequate transportation facilities available at this time and is seriously crippling business. We are informed that the per ton mile of freight increased in three years—1916, 1917, and 1918—47 per cent, while the freight cars in service during the same period increased 1.9 per cent. A striking necessity exists. * * * Any delay means the paying of greater cost directly or indirectly and places a burden on the credit system which in the approaching time for seasonal expansion may cause abnormal strain. Even under the load of war inflation, high price level, and extravagances, the bank reserves would probably be sufficient if quick transportation could be assured during the time of the greatest strain." The necessity of curtailment of credit has been widely recognized in a number of districts. In the New York district a statement issued by the bank on April 30 called attention to the continuous growth of credit and urged upon member banks the necessity of directing attention to the question of shortening outstanding lines, or at all events of preventing them from further increase. At bankers' meetings in various places it has been suggested that the associations appoint committees which should be intrusted with the duty of studying and working out methods to be applied in the rational and wise conservation of credit and the apportionment of loans upon a conservative basis. There has already been some indication of success in connection with these efforts. The most obvious demonstration of success in such attempts is found in the cities where the larger banks are naturally impressed with the necessity of greater care in controlling their obligations. Overextension and the grant of speculative credits have, however, occurred in quite as serious and dangerous a form in the smaller population centers or in the agricultural regions. Undue storage and the accumulation of goods has been a prolific cause of demand upon banks during the past few months. JUNE, 1920. On May 17-18 the Federal Reserve Board, _ _. in , a . session~ with., the Federal 1# Banking policy. , .xl A Advisory Council and with Class A Directors of Federal Reserve Banks, gave careful consideration to the credit situation as thus indicated, and as the outcome of the conference reached certain important conclusions. With reference to the immediate measures to be taken by the Federal Reserve Banks, the Advisory Council recommended the plan of "urging upon member banks through the Federal Reserve Banks the wisdom of showing borrowers the necessity of the curtailment of general credits, and especially for nonessential uses, as well as continuing to discourage loans for capital and speculative purposes; by checking excessive borrowings through the application of higher rates." It also added that "it is obvious that the borrowings of the Treasury have the same effect upon the general credit situation as those of other borrowers. The Council would suggest the wisdom of congressional relief from the burden of Government financing by a policy of rigid economy; the revision of the tax laws for the sake of a more equitable distribution of the burden without reducing the revenue; the enactment of the budget system, the budget to include provision for the gradual payment of the short-time obligations of the Treasury. These would of necessity preclude unwise appropriations, such as the proposed soldiers' bonus. ;; A committee headed by Mr. J. B. Forgan prepared resolutions reviewing credit and banking conditions to which reference has already been made, and in accordance therewith the conference voted to "urge as the most important remedies that the Interstate Commerce Commission and the United States Shipping Board give increased rates and adequate facilities such immediate effect as may be warranted under their authority, and that a committee of five be appointed by the chair to present this resolution to the Interstate Commerce Commission and the United States Shipping Board with such verbal presentation as may seem appropriate to the committee." Governor Harding, in an address published JUNE, 1920. FEDERAL RESERVE BULLETIN. elsewhere in this issue, reviewed the economic and financial situation and pointed out the respective duties of the Federal Reserve Board, the Federal Reserve Banks, and of the member and nonmember banks of the country in dealing with the present credit situation, saying, with respect to this subject: " There should be a clear understanding of the parts to be played by the Board, the Federal Reserve Banks, and by the member and nonmember banks and trust companies. With respect to credits, the problems of the Federal Reserve Board, the Federal Reserve Banks, and the member banks, while interrelated, are distinctive. The Federal Reserve Board has but little direct contact with the member banks; it deals with general conditions and principles rather than with individual cases and details. The Federal Reserve Banks, on the other hand, are in daily contact with their member banks and have constant dealings with them. Between the Federal Reserve Banks and the Federal Reserve Board, as the supervisory and coordinating body, there is necessarily a close and intimate relationship. The member banks transact the greater part of the primary banking business of the country. They receive the deposits of the public and are the media through which ordinary commercial credits are extended. "The primary duty of the Federal Reserve Board is to see that the Federal Reserve Banks function normally in the manner prescribed by the Federal Reserve Act. The character of business which may be engaged in by the Federal Reserve Banks is described in detail in sections 13 and 14 of the Federal Reserve Act, and all regulations of the Board bearing upon the loans and investments of the Federal Reserve Banks must be in conformity with the provisions of the law. Regardless of the extent of its legal powers, it would be a most difficult task for the Federal Reserve Board sitting in Washington to attempt by general rule of country-wide application to distinguish between 'essential' and 'nonessential' loans. During the war there was a broad underlying principle that essentials must be 'necessary or contributory to the conduct of the war/ but 557 notwithstanding the sharp outline of this principle much difficulty was experienced by the various war boards in defining essentials and nonessentials. All the more difficult would itbe for the Federal Reserve Board to make such a general definition now when there is no longer that purpose as a guide." The address of Governor Harding was given formal indorsement by the conference through the adoption of a resolution elsewhere published in this issue. In view of the steady pressure for funds, and by way of emphasizing the Advances in necessity of continued moderarates. tion in rediscount applications, the Federal Reserve Bank of New York on May 29 announced a new schedule of discount rates. For advances not exceeding 15 days, secured by all classes of eligible commercial paper, excepting bankers' acceptances, and for rediscounts of such paper, the rate was fixed at 7 per cent, an increase of 1 per cent over the previously existing rate. For advances not exceeding 15 days on Liberty loan bonds and Victory notes, and customers' notes secured by either of these classes of obligations, and for rediscounts of customers' notes secured in the same way, a rate of 6 per cent, or an increase of one-half of 1 per cent over the former rate, was named. For advances not exceeding 15 days secured by bankers' acceptances, and for rediscounts of such acceptances, a rate of 6 per cent, an increase of 1 per cent over the previous rate was fixed. An increase of one-half of 1 per cent over the old 5 per cent rate for advances secured by Treasury certificates of indebtedness was also established and approved by the Federal Reserve Board. Inasmuch as the new rate for advances protected by Treasury certificates of indebtedness is now fixed at the same level as that borne by the certificates themselves, members who obtain accommodation at this rate would do so at a cost exactly equal to the income produced by the certificates. Subsequent to the announcement of the rates established by the Federal Reserve Bank of New York, as thus outlined, similar advances in rates were made by other Federal Reserve 558 FEDEBAL BESERVE BULLETIN. JUNE, 1920. Banks, the rate schedule at the opening of ommend to the member banks of the Federal Reserve System to meet the existing inflation of currency and June being therefore modified as follows: credits and consequent high prices, and what further Rates on paper discounted for member, banks approved by steps it purposes to take or recommend to mobilize credits the Federal Reserve Board up to June 1, 1920. in order to move the 1920 crop. Federal Reserve Bank. Discounted bills maturing within 90 days (including member banks' 15-day 1 collateral notes) Bankers acceptsecured by— ances maturing within Treas3 ury Liberty certifi- bonds months. cates and of in- Victory debted- notes. ness. Discounted bills secured otherwise than by Government war obligations, also unTrade secured, maturing acceptwithin— ances maturing to 180 within 90 days 91days (includ90 (agriing days. member cultural and banks' 15-days livecollateral stock notes). paper). Boston New York... Philadelphia Cleveland... Richmond.. Atlanta Chicago St. Louis Minneapolis. Kansas City. Dallas San Francisco. 1 5i per cent on paper secured by 5£ per cent certificates and 5 per cent on paper secured Iby 4| and 5 per cent certificates. NOTE.—Rates shown for Atlanta, St. Louis, Kansas City, and Dallas are normal rates, applying to discounts not in excess of basic lines fixed for each member bank by the Federal Reserve Bank. Rates on discounts in excess of the basic line are subject to a h per cent progressive increase for each 25 per cent by which the amount of accommodation extended exceeds the basic line. The 7 per cent rate for commercial paper which has thus been established substantially reflects conditions in the commercial loan market of this country where during the past month there has been a decided upward tendency, due to the increasing pressure for commercial banking accommodation. The new rates, therefore, bring the rediscount charge practically into line with the movement of commercial rates. There is undoubtedly a general tendency the world over for current rates for banking accommodation to advance, as well as for the rate of return yielded by investment securities to rise. Since the announcement of the Federal Reserve Banks' new schedule, cable dispatches from London have indicated a prospect that the current rate at the Bank of England might be advanced from 7 per cent to 8 per cent. The credit policy of the Board is set forth in a letter of reply to the following Senate resolution adopted May 17: In its answer dated May 25, 1920, the Board stated that for many months past it has recognized that the expansion of bank credits in this country was proceeding at a rate not warranted by the production and consumption of goods. I t has repeatedly admonished the Federal Reserve Banks that influence should be exerted upon the member banks to induce them to avoid undue expansion of loans and to keep their volume of outstanding credits within moderate bounds. The Board called attention to the outcome of the conference with the Federal Advisory Council and Class A Directors, already reviewed, and then points out that " while Federal Reserve Banks may properly undertake in their transactions with member banks to discriminate between essential and nonessential loans, nevertheless that discrimination might much better be made at the source by the member banks themselves. The individual banker comes in direct contact with his customers; he is better qualified than anyone else to advise the customer, because of his familiarity, not only with the customer's business but with the general business conditions and needs in his immediate locality. In making loans he is bound by no general rule of law as to the character of the purpose for which a loan is being asked. He is entirely free to exercise discretion, and can make one loan and decline another as his judgment may dictate/ 7 So extensively has the artificial congestion of goods due to inadequate Bank position in , , ,. *. -,-.- . , transportation iacuities interfered with the normal process of marketing that it has of late been difficult to differentiate between demand for credit growing out of impeded marketing and demand originating in the effort to accumulate stocks and raise prices. There is, however, at this season of the year always a natural upward movement of loans at interior banks, especially those in the agricultural regions where producResolved, That the Federal Reserve Board be directed to tive operations are attaining the first vigorous advise the Senate what steps it purposes to take or to rec- development of the season. This progressive ,, . . . , 1920. FEDERAL RESERVE BULLETIN. seasonal change in condition has been foreshadowed during the past two or three months, and the early evidences were reflected in figures already furnished during April and May. The following tabulation continues figures already supplied for preceding months with reference to the condition of member banks, taking the country as a whole, while a second tabulation shows the position of the item " Bills rediscounted with Federal Reserve Banks'7 for each of the Federal Reserve districts on May 14 as compared with March 12. 559 illustrating the transfer of funds from the city banks included in the clientele of Federal Reserve Banks to those in the country. This, as already explained, is a seasonal movement of bank credit which occurs each year during the spring months. In the present year the demand thus exerted is more marked absolutely, even though not relatively, than has been usual in former years, because of the higher prices of all products, naturally requiring the use of a greater amount of bank credit in carrying goods, and because of the abnormal period of time required in marketing, due to [In thousands of dollars]. the fact that serious congestion has occurred Loans at various points. (including Rediscounts rediscounts) and bills In order to prevent the demands upon banks Number and investpayable Net Date. of banks ments with demand from becoming unduly excessive, several FedFederal reporting. (including deposits. United Reserve eral Reserve Banks have begun to make States Banks. securities). application of the method of credit control authorized in the Phelan Act. May 7 810 17,050 2 092 11 389 May 14 17 093 814 2 128 11 561 Problems of an important nature relating to May 21 814 17,045 2,059 11 503 May 28 814 17,077 2,060 11,559 Growth of ac- the development of acceptance ceptance credits. c r e dit in the United States have Rediscounts of reporting member banks with Federal Reservebeen under consideration during the past Banks. month. On April 20 a conference was held [In thousands of dollars.] between the Federal Reserve Board, on the one hand, and representatives of accepting March 12, May 14, 1920. 1920. banks and dealers in acceptances, on the other, at Washington, the immediate subject under 102,522 87,691 Boston New York... 427,539 352,818 advisement being the question whether acPhiladelphia. 116,602 79,744 Cleveland 49,976 59,128 ceptances bought in the open market should be Richmond 29,662 36,127 Atlanta 34,648 51,400 charged directly as a part of the line of dis-Chicago 187,684 246,697 St. Louis 59,055 85,838 count granted the accepting bank by the FedMinneapolis.. 31,706 51,601 DiscusKansas City.. 53,731 68,064 eral Reserve Bank so buying them. 10,636 20,113 Dallas sion of this question broadened into considera55,014 70,131 Sari|Francisco Total..., 1,158,775 1,209,352 tion of the general aspects of the whole acceptance situation. This general question was later discussed by the American AcceptFrom this statistical showing it will be seen ance Council, in session at New York on that there has been a gradual transfer of reMay 20. At the sessions of the American sources from the northern and eastern Federal Acceptance Council the whole acceptance sitReserve districts to those of the South and uation was reviewed, and the position was West for the purpose of facilitating the movetaken that the maintenance of a strong, ment of crops to market. Two factors have broad acceptance market is an essential been prominent in the situation—the one an element in the development of the Federal unusual and abnormal delay in the movement Reserve System. The proper treatment of of old crops to market, the other an unseasonacceptances in the market and at Federal Reable retardation of planting and other operations connected with the new crop. The serve Banks, it was the consensus of opinion, shifting of funds thus occasioned is even more both in the conferences with the Board and at evident when attention is given to data the American Acceptance Council, would follow 560 FEDERAL RESERVE BULLETIN. naturally when sound and appropriate methods are pursued by the banks creating them. Adoption of the established European methods of creating and trading in acceptances was advocated as the best means of avoiding abuses growing out of the present situation. The discussion has developed the fact that at the present day there are considerable abuses both in banking practice with reference to acceptances and in the present plan of practically treating them as merely a direct addition to the accepting bank's loaning power. It emphasizes once more the need of drawing the essential distinction between the sale of the bank's credit which is represented by the acceptance and the process of actual or direct discounting which is represented by the deposit operation. It is the practice of many banks to regard the acceptance as an addition to their lending power—a means, therefore, of enlarging or overpassing the limits set by law with respect to lending ability, which has given the acceptance in not a few minds an unwarranted aspect as a means of pushing still further the credit inflation which is recognized as a very general evil in existing conditions. Early rectification of banking practice with regard to acceptances is considered necessary as an element in the general process of controlling and reducing the volume of unnecessary or undesirable credits. The acceptance situation at the present moment, however, has a special bearing in connection with the export trade. British banking institutions have allowed themselves to accept upon a very much larger and less restrained basis than that which was adopted by them before the war, and in some cases the acceptances of the greater banks of deposit in London now run to twice their capital and surplus, whereas before the war they were well below the level of their capital. It is the opinion of observers that this greater freedom of accepting in Great Britain is due to a desire on the part of banks to reestablish their hold upon financial business and foreign trade, while American bankers are of the opinion that in order to keep their share of the business it is necessary that they should have a somewhat equal degree of freedom in the use of this kind of paper. The competitive struggle for foreign trade is in this respect, as in many others, there- JUNE, 1920. fore, in conflict with the dictates of sound control of credit. Railroad congestion during May practically reached its "peak." Repref»«ai r ° a conges " sentatives of railroad interests tion. appeared before the Senate Committee on Interstate Commerce and the Interstate Commerce Commission early in the month for the purpose of urging upon those bodies a larger amount of equipment in order to bring about a steady and orderly marketing of products, as well as the probable necessity of the establishment of priority orders designed to insure the more rapid movement of necessary commodities to market without further delay. These applications grew out of the increasing seriousness and severity of the freight congestion which has practically operated to "tie u p " the railroads o"f the country during the past two months. They resulted in the issuance of such priority orders on May 20 and in the adoption of a plan for car redistribution. As a result of the slow movement of cars, great quantities of products have been subject to postponement of delivery and have practically been stored in the cars for long periods. As was shown in reports rendered to the Federal Reserve Board during March, car congestion even before the opening of spring had already become a serious problem, due at that time to the severity of the weather during the latter part of the winter. These conditions, instead of being alleviated as spring opened, were rendered more intense as the result of the national railway strike, while an underlying basis of difficulty was the fact that for some years past the material equipment of the railroads has been growing progressively less and less adequate to meet the requirements of the freight and passenger traffic of the country. Mention has already been made of the fact that the Advisory Council and Class A Directors of Federal Reserve Banks fully recognized the situation as an important factor in the credit problem. Prior to the meeting of the conference the Board on May 10 had already called the attention of Federal Reserve Banks to telegrams sent out by the Interstate Commerce Commission, suggesting cooperation with any civic movement that might be in. augurated to assist the more rapid movement JUNU, 1920. FEDERAL RESERVE BULLETIN. 561 of cars. In the Board's communication to the has been in excess of 1919 for the 11 leading Federal Reserve Banks on this subject it was industries included in the following table: noted that as a result of car congestion "men Sept.-Dec., Jan.-Apr., Jan.-Apr., are thrown out of employment in several in1919. 1919. 1920. dustries, foodstuffs fail to reach consumers, Total Rela- Total Rela- Total Relanew crops must be provided for, and even if for 4 for 4 for 4 months. tive. months. tive. months. tive. railroad yards could resume normal activities at once the great accumulation could hardly of live stock at 15 be fully distributed in less than 60 days, by Receipts western markets (in thousands of head) 22,674 100 which time the new crop will be ready to Receipts of grain at 17 27,186 119.9 20,194 interior centers (in thoumove. This congestion has important bearing sands of bushels) 371,348 138.1 260,935 97 268,941 100 receipts of cotton (in upon the credit situation and cost of living, Sight thousands of bales) 3,257 6,881 211.3 100 4,148 127.4 of lumber reand besides this, as railroads are operating Shipments ported by 3 associations (in millions of feet) 2,949 109.2 3,383 125.3 2,700 100 under Government guaranty, the cost and loss Bituminous coal produc(in thousands of falls upon the public individually or as tax- tion short tons) 158,945 114.4 173,574 124.9 138,936 100 coal shipments payers. The only hope for relief would seem Anthracite over 9 roads (in thousands of long tons) 18,970 100 24,358 128.4 to come from the development of civic spirit Crude C1) O) petroleum produc(in thousands of and cooperation of the public in cities where tion barrels) 131,608 112.8 140,002 119.9 116,726 100 Pig iron production (in the congestion is most acute." thousands of long tons).. 9,377 79.4 12,110 102.5 11,811 100 Reports from Federal Reserve Agents for the month of May show that ductUm?16 ° PF°" there n a s been a strong effort in many parts of the country to maintain and enlarge the volume of production. This effort has been the response of the manufacturers of the country to the strong and urgent demand for goods, both at wholesale and retail. Difficulty in making it effective has been experienced mainly because of the unsatisfactory conditions in transportation which followed upon the railway strike of April. Other factors, such as labor strikes, notably that of the longshoremen in our larger ports, have also had an important effect; so, too, has the withholding from market of salable goods. As a result the months of April and May show a condition with respect to physical volume of production and trade which is far from satisfactory. The Board's indexes of trade and production show a falling off in April figures (those for May are not yet available) from those for March in such basic industries as pig iron and steel ingots, with little improvement shown in the coal situation. In other lines, however, production or movement was well sustained. This decrease has not been sufficient to fully offset the increase shown in the figures for the earlier months of the present year as compared with the same period of 1919, the latter being notably low in certain industries, such as the textile group. With exceptions, movement or production during the present year Steel ingot production (in thousands of long tons). 11,771 109.9 10,714 Cotton consumption (in 1,900 thousands of bales) 2,252 118.5 2,049 107.8 Wool consumption (in thousands of pounds)... 220,999 177.9 234,940 188.8 124,241 1 100 100 100 Figures not available on account of transportation difficulties. Failure to raise the per capita productive capacity of the country to something nearer its maximum level must be regarded as to-day the most serious obstacle toward the establishment of a more normal level of prices. The price level for the month of April, as shown by the Bureau of Labor Statistics index, has increased about 13 points, while unofficial returns for the month of May seem to indicate a continuation of this upward tendency, even though the month has in some sections of the country witnessed sharp reductions of retail prices to consumers. Sauerbeck's index of British prices for April 1 shows an advance of 4.7 points. The present reductions, of which much has been said in current publications, are a recognition of the tendency toward increase of stocks in various lines and toward reduction of buying power on the part of the consuming public, either because of unwillingness to pay the prices charged for many commodities or because of failure of wages and incomes to keep pace with the advance in prices which has occurred during recent months. The reduction of output has not helped the transportation situation but is rather the product of the latter, there being an accumulation of staple goods at many points on account of inability to obtain 562 FEDERAL RESERVE BULOJTIN. cars to move them. Thus, while the reduction of output or sales ought from some points of view to have brought about a condition of lessened strain upon the banks, it has in fact had the opposite effect. The retention of goods at producing centers or on the farm has necessitated a correspondingly greater application to local banks for the money with which to "carry" the products pending the arrival of a time when they could be moved and eventually sold. High prices and congestion have worked together effectively to increase the difficulties of the banking situation. The effort to force downward revision of prices of goods has probably had the effect of cutting off a certain percentage of excessive prices due merely to a feeling on the part of dealers that there was practically no limit to what the public was prepared to pay. It has, however, had no immediate relationship to the underlying situation in prices since it does not apparently grow out of a large accumulated surplus of goods, a material change in the conditions of bank credit, or a change in the volume and methods of production. Least of all has it resulted from any increase in savings and investments or from economies in consumption. I t is therefore to be regarded as of temporary significance, although it may possess a more permanent value in marking the downward turn of prices from the high levels already arrived at. Export trade during the month of April has maintained itself at high r levels " > b u t s h o w S a h e a V y re" duction both as compared with the preceding month and with the corresponding month in 1919, while quotations of foreign exchange have in most cases shown distinct improvement. There has been a rather more liberal attitude on the part of American banking institutions toward the discount of bills growing out of foreign trade. The situation has been such that the Secretary of the Treasury, on May 10, in a public statement, announced that at his request the War Finance Corporation has suspended the making of advances in aid of exports except pursuant to commitments previously undertaken. It was explained that the general powers of the corporation terminated six months after the end of the war, while even the special powers JUNE, 192a. conferred upon it under the Victor} Loan Act were to expire one year after the close of the war. With reference to the activities of the War Finance Corporation since the armistice, the Secretary said that " after the armistice, when business had suffered a recession in consequence of the cancellation of war orders, and when there was a fear that exports might decline and unemployment exist, an amendment to the act was passed authorizing the corporation to assist in the financing of exports." Continuing, he pointed out that to-day business is prosperous and involuntary unemployment negligible, while the export trade has not declined but has increased, so that in these circumstances Government stimulation of exports is unnecessary, particularly as the Treasury is obliged to borrow in order to meet obligations. With reference to the theory of the export situation, the Secretary of the Treasury made an interesting point when he stated that " I t would be a question whether the Government should continue to aid and stimulate exports, considering their present volume privately financed, even if the Treasury had surplus funds." The determining factor, however, is found in the circumstance that the Treasury is a continuous borrower. So far as the War Finance Corporation itself is concerned, its entire capital stock of $500,000,000 has been issued and is held by the Treasury, while the funds arising from its capital and the reserve fund, amounting to $25,000,000, are largely invested in Government securities. Probably only a little over $50,000,000 has been applied to the financing of exports. The export and import business of the month corrected as of May 15 has been officially announced, showing a drop of $135,000,000 in exports and of nearly $30,000,000 in imports in April, as compared with the preceding month of March. Exports in April were valued at $684,000,000, against $820,000,000 in March of this year and $715,000,000 in April of last year. For the 10 months' period ending with April exports amounted to $6,734,000,000 this year, an increase of $1,034,000,000 over the amount of $5,700,000,000 in the same period of the fiscal year 1919. Imports in April amounted to $495,000,000, against $524,000,000 in March of this year and $273,000,000 in April of last year. During the 10 months' period ending JUNB, 1920. 563 FEDERAL RESERVE BUUUETIN. with April, imports were $4,254,000,000, an increase of $1,780,000,000 over the amount of $2,474,000,000 in the 10 months' period of 1919. While there has been no material change in the methods of export financing currently emplo}^ed, there is apparently some distinct increase in the scope of the business which is carried on upon a partial barter basis, raw products being shipped abroad to be manufactured and returned to the United States in finished form. As already mentioned, some American banks have already been disposed to increase the degree of their liberality with respect to the discounting of bills growing out of the foreign trade. Return of foreign-held American securities to the United States has also continued and has resulted in providing funds here with which to pay for exports of goods, the securities so sold being usually disposed of under existing conditions of exchange at very substantial profit to their owners in those cases where they have been held for a considerable time. The meeting of allied premiers at Hythe, England, on May 17 and the mfn°tseign require " succeeding days, is reported to have given careful consideration to the form and amount of the prospective German indemnity, the figure having been tentatively set, according to current report, at about $28,500,000,000. According to representations made on behalf of Germany, the amount estimated by German authorities as the limit of the ability of that country to pay was set at $10,000,000,000. While the details of the plan in process of development for the adjustment of financial relations between the Central Empires and the Allies have not yet been made known, the preliminary announcements indicate that the operation will give rise to a considerable issue of new German bonds. Announcement of the tentative conclusions of the conference had an apparent tendency to improve the quotations of French and Italian exchange, which during the month had shown a decidedly weaker tendency. Sterling exchange was but little influenced by the announcement and has remained tolerably steady. An interesting development of the month was afforded by the decline in the price of silver, which eventually fell below $1 per ounce, and indicates the possibility of important modifications of our exchange relationships with the silver-using countries of the Orient. Variations in Japanese exchange during May have also suggested the possibility of a return movement of gold from that country to the United States at a comparatively early date. As an outcome of the reduction of the price of silver the following statement was issued by the Director of the Mint on May 17: The provisions of the Pittman Act are mandatory and, in accordance with them, the Secretary of the Treasury has given standing orders to the Director of the Mint to buy silver at $1 per ounce, 1,000 fine, delivered at the option of the Director of the Mint at the assay office in New York or the mints in Philadelphia, Denver, and San Francisco, up to the aggregate amount of 207,000,000 ounces. Under the terms of the act the silver so purchased must be the product both of mines situated in the United States and of reduction works so located, and clear and unequivocal proof to that effect will be required. Forms for such proof may be obtained at said assay office and mints. The provisions of the Pittman Act to which reference is made by the director, if carried out, would thus result in establishing a governmental market for silver up to a possible sum of more than $200,000,000, and would presumably result in the retirement of a corresponding amount of Federal Reserve bank notes (which it will be recalled were temporarily issued in lieu of silver certificates), as silver certificates are once more reissued and take their old place. This may serve temporarily to arrest alterations in the Oriental exchanges which might otherwise occur. The following review of the exchange situation during May continues figures already given for previous months: Foreign exchange rates. Weekended— Mayl. England France Italy Spain Argentina China (Hongkong) China (ShanghajL Japan (Yokohama) Germany Switzerland Sweden Holland Belgium May 8. High. Low. High. Low. 3.88* 16.31 21.97 17.10 43.15 95.50 132.50 50.00 1.74 5.62 21.30 36.50 15.42 3.74f 17.05 22.95 16.85 42.875 93.50 128.00 49.75 1.69 5.67 21.00 36.125 15.92 3.87i 15.70 20.22 16.93 42.70 91.50 123.50 52.50 1.92 5.63 21.25 36.375 14.72 3.82* 16.67 21.82 16.87 42.60 86.75 119.00 51.00 1.77 5.69 20.00 36.3125 15.47 564 FEDERAL, RESERVE BULLETIN. Foreign exchange rates—Continued. Bank of France. [In thousands of francs.] Week ended— May 15. May 22. High. Low. High. 8 i Premium. Silver exchange basis. Changes in the condition of the Bank of England and in the volume of oreign an British Government borrowing ing outlook. at that institution, as well as conditions in France, have been observed with more than usual interest during the past month in order to ascertain the effect of the higher discount rate policy initiated there in April. On the whole, the results of the advance in rates for British Treasury certificates, coupled with the advance in discount rates at the Bank of England, have been successful, the total volume of Government securities held by the Bank of England declining between April 14 and May 19 by about £19,500,000, while deposits fell from £142,000,000 to £121,000,000. In France, during the same period, bills discounted and deposits have fallen in a less marked degree. In the following table are furnished details concerning the volume of bills held, deposits outstanding, reserves, and Government advances at the Banks of France and England. Bank of England. [In thousands of pounds sterling.] Date. 1920. Apr. 14.... Apr. 2 1 . . . . Apr. 28..-. May 5 May 12.... May 19.... Govern- Bank of Other Deposits, public Coin and ment England Currency securiand bullion.* securities. notes.2 notes. other. ties. 79,891 79,613 75,164 79,691 80,444 82,632 142,204 144,303 140,381 137,166 120,832 121,358 140,950 140,921 141,018 141,020 141,019 140,972 55,119 57,476 59,805 55,310 38,455 36,516 106,018 105,963 107,884 111,116 111,313 110,882 340,029 337,182 337,377 343,054 345,479 345,826 1 Includes £28,500,000 held by the Exchequer. 2 Including amounts held by the Exchequer as part cover for currency notes, these amounts showing an increase from £6,500,000 to £7,600,000 during the five weeks. NO^E.—The material covering the period from Apr. 14 to May 5 was obtained from the London Economist; that from May 12 to May 19 from the New York Commercial and Financial Chronicle. Bills discounted. Gold and Advances to the Note circu- Deposits, silver re- GovernTreasury lation. in ment for and other. serve France. the war. 1920. Apr. 1 5 . . . . Apr. 2 2 . . . . Apr. 2 9 . . . . May 6 May 1 4 . . . . May 2 0 . . . . 2,222,500 2,145,842 2,308,504 2,028,181 1,996,396 1,980,939 37,434,293 3,696,508 3,849,658 37,326,732 3,641,215 3,853,565 37,687,600 3,469,307 3,852,119 38,249,345 3,483,318 3,850,864 38,138,079 3,683,279 3,849,332 38,051,511 3,709,324 3,848,989 High. Low. 3.84f 3.80f 3. 3.92i 3.34 14.90 15.88 13. 12.26 13.58 16.53 18.58 20.47 19.62 18. 16.63 16.60 16.85 16.75 16. 42.55 42.50 42.875 42.625 42. 85.00 81.75 86.75 79.25 85. 119.00 113.50 119.00 110.50 119. 51.50 50.75 52.00 50.00 51. 3.01 1.97 2. 2.08 2.58 5.60 5.73 5. 5.68 5.65 21.50 20.90 21.00 20.85 21. 36.625 36.3125 36.375 36.3125 36.50 36.375 12.15 13.17 13.02 13.76 14.30 14.77 England France Italy Spain Argentina China (Hongkong) China (Shanghai) Japan (Yokohama) Germany Switzerland Sweden Holland Belgium Date. May 29. Low. JUNE, 1920. 25,300,000 25,300,000 25,300,000 25,900,000 26,050,000 26,050,000 Source: L'Economiste Frangais. Comparison has been made with official statements. Conditions on the continent have naturally been less favorable than those in Great Britain, a fact which accounts for the relatively less encouraging exchange situation affecting the lira and other continental currency. The quotation of marks has strengthened, reaching a point well above 2} cents during the latter part of May and exhibiting an ability to hold its position at a level roughly corresponding to that figure. This is not due to any improvement in banking or financial conditions in Germany itself, the paper currency situation there apparently growing worse rather than better, as illustrated by the fact that the volume of Reichsbank notes outstanding increased from 47,939,817,000 marks on April 30 to 49,127,645,000 marks on May 21. The betterment of German exchange is rather to be attributed to the increasing volume of American investment in German securities of various kinds, and also to the liberal purchases of German marks which have been made while that currency was still below the 2-cent level, in the belief that a material advance in its value was to be expected. How long these influences are likely to continue their effect is, of course, entirely uncertain, the outstanding features of European banking conditions being seen in the apparent success of the policy of higher discount rates and more strict application of conservative banking principles. During the month ending May 10 the net outward movement of gold ^ $30,657,000, as compared with a net inward movement of $22,842,000 for the month ending April 10. Net imports of gold since August 1, 1914, were $677,284,000, as may be seen from the following exhibit: JUNE, 1920. FEDERAL RESERVE BULLETIN. [In thousands of dollars.] Imports. Aug. 1 to Dec. 31,1914. J a n . l to Dec. 31,1915.. Jan. 1 to Dec. 31,1916.. Jan. 1 to Dec. 31,1917.. Jan. 1 to Dec. 31, 1918.. Jan. 1 to Dec. 31,1919.. J a n . l to May 10,1920.. " ^Total Excess of Exports. imports over exports. 23,253 451,955 685,745 553,713 61,950 76,534 83,063 104,972 31,426 155,793 372,171 40,848 368,185 185,534 i 81,719 420,529 529,952 181,542 21,102 1291,651 i 102,471 1,936,213 1,258,929 677,284 i Excess of exports over imports. England furnished over three-fourths, or $7,678,000, of the $9,923,000 of gold imported during the monthly period ending May 10, Mexico, Canada, and Belgium furnishing most of the remainder. Of the total gold exports, amounting to $40,580,000, $26,350,000 was consigned to Argentina, $4,667,000 to Hongkong, $2,000,000 each to the Dutch East Indies, British India, and Uruguay, and $1,300,000 to^ Mexico, the remainder going principally to the Straits Settlements, Japan, and China. Since the removal of the gold embargo on June 7, 1919, total gold exports have amounted to approximately $539,000,000. Of this total, tibout $146,555,000 was shipped to Argentina, $101,376,000 to Japan, $62,762,000 to Hongkong, $55,396,000 to China, $39,025,000 to British India, and $29,778,000 to Spain; the remainder being shipped principally to Uruguay, Mexico, Dutch East Indies, the Straits Settlements, and Venezuela. During the same monthly period the net outward movement of silver was $372,000, as compared with a net outward movement of $6,751,000 for the month ending April 10. Net exports of silver since August 1, 1914, were $457,008,000, as may be seen from the following exhibit: [In thousands of dollars.] Aug. 1 to Dec. 31,1914 Jan. 1 to Dec. 31,1915 Jan. 1 to Dec. 31,1916 Jan. 1 to Dec. 31,1917 Jan. 1 to Dec. 31,1918 Jan. 1 to Dec. 31,1919 Jan. 1 to May 10,1920 Total Excess of exports over imports. Imports. Exports. 12,129 34,484 32,263 53,340 71,376 89,410 44,736 22,182 53,599 70,595 84,131 252,846 239,021 72,372 10,053 19,115 38,332 30,791 181,470 149,611 27,636 337,738 794,746 457,008 Mexico furnished over one-half and Peru about one-fourth of the $10,568,000 of silver imported during the monthly period ending May 10, most of the remainder coming from 565 Chile, Honduras, England, and Canada. Of the total silver exports, amounting to $10,940,000, $4,760,000 was consigned to China, $2,938,000 to Hongkong and $1,130,000 to England, the remainder being consigned principally to Canada, Cuba, and the French East Indies. For the four weeks between April 16 and , ,. May 14 reports from over 800 m, J The banking -, , r , . . ... situation. member banks m leading cities indicate net liquidation of 114.6 millions of United States war securities and loans based on such securities, also reduction by 75.3 millions of loans secured by stock and bonds, as against a further increase of 144.4 millions in other loans and investments, including largely commercial loans and discounts. In the absence during the period of further Treasury certificate issues, holdings of these securities declined 83.6 millions, largely at the New York banks. Loans secured by United States securities fell off 40.5 millions, while holdings of United States bonds and Victory notes show an increase of 10.6 millions. In connection with these developments the amount of accommodation to reporting banks, as shown on the books of the Federal Reserve Banks, increased from 2,053.4 to 2,127.6 millions, or from 11.9 to 12.4 per cent of the total loans and investments of the reporting banks. About 58 per cent of the total paper held under discount by the Reserve banks during the period was composed of war paper. During the four weeks between April 23 and May 21 the Federal Reserve Banks increased their total holdings of discounted bills by 22.2 millions to slightly over 2,500 millions, the increase being confined altogether to ordinary commercial paper. War paper holdings of the Federal Reserve Banks show a slight decrease, not sufficient, however, to affect the per cent share in total discounts, which during the four-weeks period continued about 58 per cent. Little change is shown in the composition of the total war paper holdings, about two-thirds of this paper held during the period being secured by Liberty bonds and Victory notes, and slightly over one-third by Treasury certificates. Holdings of acceptances purchased in open market show an increase from 404.6 to 417.4 millions, while the amount of acceptances held under discount at the Federal Reserve Banks declined from 74.3 to 64.8 millions. 566 FEDERAL, RESERVE BULLETIN. Interbank discounting, after a slight increase in the first week and some diminution in volume during the following two weeks, shows a considerable increase during the last week of the period, the May 21 total of paper held under discount by the Boston, New York, and Cleveland banks for seven Federal Reserve Banks in the South and Middle West 146.1 millions, being 3.2 millions in excess of the April 23 total. The Philadelphia bank, which on the earlier date had a total of 23.4 millions of rediscounted paper outstanding, no longer figures in the list of rediscounting banks. The Kansas City bank increased its outstanding rediscounts from 11.8 to 14.2 millions, while the Atlanta and Dallas banks are shown to have joined the list during the past month. The New York bank continues to report a contingent liability of 16.2 millions as guarantor on bills purchased for foreign correspondents. Net deposits fluctuated between 1,773.6 millions on April 23 and 1,839.4 millions on May 14, and at the close of the period stood at 1,784.4 millions, these fluctuations being coincident with fluctuations in total discounts. Federal Reserve note circulation shows a net expansion during the period of 16.9 millions, while the banks7 liabilities on Federal Reserve bank notes show a further reduction of 3.3 millions. It may be noted that since January 2 of the present year the Federal Reserve Banks' liabilities on these notes have been reduced by 81.2 millions, or only by 5 millions less than the increase in their liabilities on Federal Reserve notes. Gold reserves, because of further export withdrawals for shipment largely to South America and the Far East, show a reduction of about 10 millions, while total cash reserves in consequence of some gains in silver and legals, show a loss of only 4 millions. Reserve ratios fluctuated within the narrow limits of 43 per cent on'April 23 and 42.2 per cent on May 14. A week later, in consequence of some reductions in loans and net deposits, the ratio rose to 42.7 per cent. The usual quarterly conference between the Conference with Federal Reserve Board and the Advisory Council Federal Advisory Council ocand Class A Di- curred on May 17. Special rectors. scope was given to it by the presence of the Class A directors of Federal Reserve Banks. All districts were represented, JUNE, 1920. and the sessions were spent in discussion of the general credit situation and in an effort to obtain a consensus of opinion with regard to the methods to be followed in bringing about orderly deflation of bank credit. Governor Harding presented at the opening session of the conference a general analysis of the situation, the substance of which is published elsewhere in this issue. After the completion of the conference the following resolution was adopted: Resolved, That the bankers here assembled, in their capacity as members of the Federal Advisory Council, in their capacity as directors of the Federal Reserve Banks of the country, in their capacity as members of the orderly deflation committee of the American Bankers' Association, and in their capacity as officers and directors of banks doing business in the various cities of the country, approve the sentiments expressed in the very able address of Governor Harding as representing the views of the Federal Reserve Board; and also be it Further resolved, That they believe that the widest publicity should be given the address, and further, that they hereby agree to abide by the spirit of the address in the conduct of their own affairs, and that they will encourage its general adoption by the bankers and people of our country. A further resolution prepared by a committee headed by Mr. James B. Forgan, the substance of which has already been quoted on page 556, was adopted and ordered transmitted to the Interstate Commerce Commission and the Shipping Board. On May 10 President Wilson sent to the Senate the name of Mr. EdPersonnel. mund Platt, of New York, chairman of the House Banking and Currency Committee, to be a member of the Federal Reserve Board, and the appointment was confirmed on May 28. At the time of his nomination Mr. Platt was a Member of Congress, having represented the twenty-sixth New York district consecutively since 1913. Throughout the term of his service in Congress Mr. Platt has been a member of the Committee on Banking and Currency, serving during the past two years as chairman. His service thus covers the period of time during which the Federal Reserve Act and the amendments subsequently incorporated into it occupied the attention of the committee. He was graduated from Harvard College in 1888 and shortly after entered the field of journalism, having been editor of the Poughkeepsie Eagle since 1907. JUNE, 1920. FEDERAL RESERVE BULLETIN. 567 BUSINESS, INDUSTRY, AND FINANCE, MAY, 1920. Changes in prices, as well as in both, business and credit conditions, occurring during the month of May, have borne witness to the presence of disturbing factors whose importance and persistence are, however, as yet uncertain. Local reductions in retail prices have occurred at "a considerable number of points and have at least suggested the advent of a serious modification of the price level throughout the country. More careful analysis has shown that there has been no material alteration in the underlying conditions affecting the situation, there being no decided increase in the volume of production sufficient to create a more normal relationship with consumption, no substantial change in the volume of credit extended, and no greater disposition to economize and invest than heretofore. The changes that ha^e taken place can not, therefore, be looked upon as indicating a modification of underlying conditions. They may, however, afford a basis for changes in business relationships that may broaden into more far-reaching alteration of the essential price structure. The continuance of labor difficulties and unrest, particularly in connection with the railroads, when added to the difficult situation produced by car shortage and lack of equipment, has caused considerable interruption to business operations, and the whole outlook has been sucn as to bring about a severe curtailment in the volume of stock and securities transactions and to compel very material lessening in the market value of Liberty bonds and of other securities of the first grade. In district No. 1 (Boston) there is noted a trend toward greater discrimination and economy in buying, with pressure for lower prices, but there is also noted very great difficulty in the way of actual deflation. In district No. 2 (New York) price reductions are noted in retail stores, a considerable accumulation of goods awaiting shipment resulting from strikes, a growth in the cost of doing business, a great reduction in securities prices, but, nevertheless, a continued high demand for goods, and activity in trade. In district No. 3 (Philadelphia) the congestion of freight and accompanying conditions have combined with a quieter state of things in the markets and a larger relative public demand for medium and lower priced goods, to alter in some respects the general drift of development of preceding months. In district No. 4 (Cleveland) an orderly movement back toward a more solid and substantial footing is noted, although not all busi- ness men are agreed on the outlook. Business conditions, however, are said to be fundamentally sound. In district No. 5 (Richmond) unrest and uncertainty in commercial fields have continued, and agitation against high prices has led to some curtailment in purchasing. Collections are good, on the whole, and the most serious cloud on the present situation is the traffic outlook. In district No. 6 (Atlanta) the peak of high prices has been reached in most lines and the tendency is downward, while there is some indication of reduction in stocks of goods. Unrest still prevails on account of high prices. In district No. 7 (Chicago) decided readjustment in economic conditions is anticipated, one factor in which is the growth of indications of general reductions of prices. The transportation and associated difficulties noted elsewhere in the country appear to be especially acute in the Chicago district, while the labor situation shows small improvement. In district No. 8 (St. Louis) the volume of business is enormous, the total in both manufacturing and distribution showing broad gains over the corresponding period last year. The peak of the upward movement is, however, believed to be reached. Productive conditions have been unfavorable agriculturally. In district No. 9 (Minneapolis) crop conditions are promising. The demand for credit is very strong and the business outlook is satisfactory, although there is a disposition to be cautious. In district No. 10 (Kansas City) there was during April the first "real recession from the high tide of activity" of the past year or more. There has been a curtailed movement of live stock and grain, resulting from bad transportation conditions accompanied by severe financial hardships upon producers and shippers. Retail trade has slowed down, but the general situation is regarded as one of encouragement, although more or less unsettled conditions are expected to prevail during readjustment. In district No. 11 (Dallas) there has been a slowing up^of agricultural, business, and financial operations which, however, has had some beneficial effect. Prices have continued upward, but the falling off in demand has affected largely the higher-priced articles. There is recognition of " a healthy spirit of caution among bank borrowers and users of capital." In district No. 12 (San Francisco) the prospects for good crops are better than at any time this year, although the season is late. Car shortage has hurt lumbering, building has 568 FEDERAL RESERVE BULLETIN. been less active, and retail trade has fallen off slightly as compared with a month ago. The arrival of the time for active effort in connection with crops has introduced a new factor into the situation in those districts where agriculture is the chief industry. In the cotton region the movement of the 1919 crop has continued to slow up, while farming conditions in the Southwest (district No. 11, Dallas) have not been very favorable. Planting is late and much replanting has been found necessary. Undue drought has been only partly relieved. Live stock ranges are in fair to good condition, and the condition of animals is reported good. In district No. 6 (Atlanta) preliminary inquiry indicates that while planting is not complete there is a disposition to increase acreage. The progress of the crop has been greatly delayed. Actual damage to crops thus iar through unfavorable weather has been small. With respect to wheat, it is reported by district No. 9 (Minneapolis) that spring wheat acreage will be 12 per cent less than a year ago, owing to shortage of farm labor, but that there will be increased seeding to flax, barley, and oats. Corn acreage is expected to be unusually large. Live-stock conditions are improving, but the herds are in poorer condition than at this time a year ago. In district No. 10 (Kansas City) winter wheat made good progress in April. Abandonment of acreage is not as large as was at first reported. In some States of the district, notably Oklahoma and Nevada, conditions are very much better, but it is still true that a large reduction in acreage has taken place. Corn planting is slow. Cotton is also retarded. In the Middle West (district No. 7, Chicago) there is a great demand for credit in agricultural districts, the serious shortage of farm labor, as well as cold weather and large rainfall, having hindered farm work. Spring wheat acreage has been restricted, but the crop is now doing well. The outlook is "fairly promising.7' The transportation "tieu p " is reported from all districts as having prevented normal movement to the markets, as well as for export, and a correspondingly larger use of credit. Large stocks of both corn and wheat are being carried on farms, in elevators, and elsewhere. Agitation designed to bring about some relief of the labor shortage may produce better conditions in the near future. From district No. 10 (Kansas City) it is reported that Kansas had 35,500,000 bushels of wheat in storage, as against 11,000,000 a year ago. Throughout the district the delay in. the movement of products is serious. The favorable conditions for live stock reported from some districts, notably Dallas, Kansas City, and Minneapolis, encourage the JUNE, 1920. belief that the year's output will be better than was expected. This continues the expectations already reported a month ago. In live stock, as in grain, however, the movement to the markets has been delayed. Receipts of cattle at 15 principal markets during April were 1,040,903 head, as compared with 1,203,499 head during March, and 1,255,379 head during April, 1919, the respective index numbers being 103, 119, and 125. Receipts of hogs likewise decreased from 2,910,909 head during March, corresponding to an index number of 132, to 2,150,281 head during April, corresponding to index number of 98, and 2,823,484 head during April, 1919, the index number for which month was 128. Receipts of sheep during April were 928,191 head, as compared with 900,299 head during March and 970,070 head during April, 1919, the respective index numbers being 68, 66, and 71. In iron and steel demand has continued very heavy and steel mills are booked far ahead. The ore situation is, however, not improved. Lake transportation has been slow. The railroads can handle only a small portion of the ore which is ready for shipment. A shortage of coal in the Northwest is expected. Shipments of ore for April were only 231,000 tons, compared with 1,400,000 in April, 1919. In district No. 3 (Philadelphia) the general iron and steel market has been much quieter lately and buying has slackened. The level of prices continues firm. Some mills have been fortunately situated in possessing a large supply of raw materials, and orders in practically all lines are booked for a long time ahead, so that manufacturers feel that the present year should be a time of continued prosperity. This, however, is largely contingent upon the development of better transportation and improvement in labor conditions. In district No. 6 (Atlanta) pig-iron production has increased somewhat over 1919, but there is a decrease as compared with March. Pig-iron prices are advancing. Steel plants are well supplied with orders and working on full time. Commercial work in fabricating plants is active and prospects bright. The unfilled orders of the United States Steel Corporation at the close of April were 10,359,747 tons, corresponding to an index number of 197, as compared with 9,892,075 tons at the close of March, the index number for which month was 188. Pig-iron production during April decreased to 2,739,797 tons, as compared with 3,375,907 tons during March, respective index numbers being 118 and 146; while steel-ingot production likewise decreased from 3,299,049 tons during March to 2,638,305 tons during April, the index numbers being 137 and 109, respectively. JUNE, 1920. FEDERAL RESERVE BULLETIN Coal conditions have been particularly important in connection with iron and steel, as with other industries. The state of things in regard to coal is now very acute in some districts. In district No. 2 (New York) the supply is far below the demand and consumers are bidding against one another. Railroads "are more or less the victims of systematic sabotage at their terminals." The car supply at the mines is only 30 per cent of normal, while the labor situation there is also unsettled. The situation as a whole "is such as to cause considerable concern among conservative coal men" and transportation is regarded as a fundamental factor requiring improvement. In the Middle West (district No. 4, Cleveland) coal shipments have fallen off. For April at lake ports they were about one-third of what they were in April, 1919. Lake shippers will pool their coal in order to increase the movement, but this is only a partial remedy. Fuel prices are the highest on record in the lake trade. Not only does a general shortage of coal exist now but a shortage next winter which may curtail production of iron and steel at interior furnaces is foreseen. In district No. 6 (Atlanta) the coal production is being held down, mines being able to get only an insufficient number of cars. Labor, however, shows no discontent, and there is small movement of coal in foreign trade. Railroads throughout the district have placed orders for fuel for the next 12 months, "the amount in every instance being larger and the price higher than ever before." Production of bituminous coal for the country at large during April amounted to 37,966,000 tons, as compared with 46,792,000 tons during March and 32,164,000 tons during March, 1919, the respective index numbers being 102, 126, and 87. Labor difficulties, although sporadically existing, appear to be a relatively minor factor in coal production as compared with the influence of car shortage. In the Southwest many bituminous coal mines are operating at only about two-thirds of capacity. No reduction of prices is in sight. Demand for petroleum continues very strong. In the Kansas and Oklahoma oil fields April output was about 10,500,000 barrels, or slightly larger than in March, as compared with about 9,000,000 barrels in April, 1919. Production still tends to increase. The California output was about 275,000 barrels a day, as compared with 276,000 in March. Stored stocks have decreased nearly 500,000 barrels. At the present rate of production and consumption the stored stocks in California will probably be exhausted before the close of 1921. Metal mining has shown a slight improvement in Colorado, despite some shortage in labor, while lead, and zinc have shown a price 569 reaction on the Joplin market, although much of the output is still in cars and on the sidings. The average price for lead ores is one of the highest for many months, but the supply of ore is insufficient to meet demand. Production, however, is fairly well maintained. General manufacturing has continued in substantial volume, although unsettled conditions of labor and uncertainty on the part of retail buyers have had a restrictive effect. In leather and shoes production is reported by district No. 1 (Boston) to below and "quantities of merchandise extremely high." rrices of leather are down to 80 cents from a peak of $1.75 per foot. Dealers stopped buying about the middle of May. Some manufacturers have had overtures for cancellations, which have been refused. In district No. 5 (Richmond) no recession in prices is expected. Tanners in district No. 3 (Philadelphia) are not optimistic about present conditions. Some tanners manufacturing for foreign trade contemplate shutting down. There is an insufficiency of labor. Retailers are restricting their orders for shoes. Wholesalers and jobbers are overstocked. Manufacturers are receiving some cancellations. Increased buying, however, is expected in the near future and most manufacturers are continuing to operate at capacity. The outlook is for " a steady volume of business but at lower price levels." Textile production has been subject to many disturbing conditions. In the New Bedford district of Massachusetts, textile strikes of some importance have occurred. An advance of wages of about 15 per cent in the principal textile centers of NewEngland has been announced. High prices for cotton continue with very little indication of a reduction. Spinners, however, are cautious, believing that prices on fine cotton yarn have reached the top. In knit goods demand has practically ceased at the present time. Goods for fall delivery have been quoted at 20 to 30 per cent below those of spring. Cotton yarn continues at a high level. "The outlook in the trade (for knit goods) is very uncertain" but "many manufacturers hold to the belief that orders will soon be placed in great numbers." In wool the auction sales at Boston have resulted in the purchase of only about 30 per cent of offerings, and prices were off about 20 per cent from the previous sales of English wool. Prices of American wool are off 10 per cent and on lower grades 10 to 15 per cent. There is some letting up in the demand of the purchasing public for the finer grades of cloth. Cancellations of orders in both cotton and wool have not been large but are already noticeable. Clothing manufacturers are purchasing but little from the weavers in 570 FEDERAL RESERVE BULLETIN. JUNE, 1920. district No. 3 (Philadelphia). They also are with a view to granting those only which receiving numerous cancellations and are might be found to be necessary. obliged to make concessions to retailers. GenIt was further agreed that caution must be eral wholesale trade, in spite of unsettlement exercised and commitments must be made only due to conditions already described, holds up with discretion. tolerably well. Building activity continues well sustained in WHOLESALE TRADE ACTIVITY IN THE WEST. many sections, although seriously curtailed in Evidence of a general sort is to the effect that certain districts, such as Chicago, by the shortage of materials and by increased prices. From wholesale trade in April showed a falling off several districts it is reported that new con- from the extreme activity of the preceding struction is largely confined to business build- month. Thifc evidence is supported by the ing as against construction for housing pur- statistical data, showing changes in volume of poses. The character of building operations sales, collected by the Kansas City, Dallas, and nas resulted, it is reported, in a lessened demand San Francisco banks. On the whole, however, for lumber, whereas in the case of brick, cement, sales in these three districts were still greatly etc., as just noted, demand outruns supply. in excess of those for the same month of the In certain districts complaint is made of diffi- preceding year. culty in financing construction, and in some DISTRICT NO. 8 (ST. LOUIS). of the larger centers the great increase in rentals has resulted in a large growth of purchasPretty generally throughout the wholesale ing of syndicates of tenants. and jobbing strata of distribution a note of The labor situation during the month has conservatism is being sounded. In certain lines been one of the outstanding elements of doubt purchasing has slowed down, or is being purand difficulty. In addition to intense shortage sued on a more discriminating basis. The of labor on farms and at other points of primary unusually late season has given rise to appreproduction, sporadic strikes in many lines of hension among country merchants relative to manufacturing, notably textiles, have contin- the outcome of crops. Ready-to-wear clothued to indicate unrest. Wages have apparently ing, hats, and some specialties handled by fallen behind the advance in prices and cost of wholesale dry goods houses display recessionary living. The movement of labor from the farms tendencies. As a general proposition, the to the cities is continuing. Various demands wholesale dry goods trade is described as steady, for higher wages have been taken under advise- but with a tendency to slow down, due to the ment for the purpose of bringing about com- credit situation and uncertainty of the agriculpromise adjustments between employers and tural outlook. Pretty much the same status employees. General complaint of low effi- obtains in boots and shoes, with many houses ciency or small output per unit of labor con- stating that retailers are not disposed to tinues to be prevalent. The difficulty of get- stock heavily. Among wholesale grocers and ting skilled labor in some of the more highly hardware people there are no indications of developed lines of manufacture is very con- letting down in the demand. These lines are lively as ever, with goods scarce, prices strong siderable. The financial occurrences of the month have to higher, and the demand unabated. Drugs been of first importance. In addition to a and chemicals, also, continue in urgent demand, heavy decline both in volume and value of with no downward scaling in the recent exsecurities in the financial centers, there has travagant prices. Collections up to now have been a general tendency to revision of interest been in the main fair to good. There are some rates. This has applied both to call and time backward spots and less general alacrity to funds and to rates for commercial paper. No settle than heretofore, but specific complaints material change in rediscount rates at Federal are not numerous. Reserve Banks has occurred, but an effort to DISTRICT NO. 9 (MINNEAPOLIS). limit credit to essential necessities has been general. It has been sought to promote this The wholesale trade shows considerable accontrol of credit through conferences among tivity in farm implements and the lines that are bankers and discussions of the financial sit- affected by spring planting activities, but there uation at meetings of bankers and financial is an inclination on the part of retailers to buy authorities generally. On May 18 an import- more conservatively than during the past three ant conference between the Federal Reserve or four years. This appears to be the result of Board and the Federal Advisory Council and a general feeling on the part of the country merClass A directors of Reserve Banks occurred chants that price recessions are in sight, and in Washington, as the outcome of which they do not desire to buy on a falling market or agreement was reached to make a more care- stock up beyond immediate needs until the ful scrutiny of applications for bank credit, future price situation becomes clearer.' 571 FEDERAL, RESERVE BULLETIN. JUNE, 1920. DISTRICT NO. 12 (SAN DISTRICT NO. 10 (KANSAS CITY). FRANCISCO). Sales by wholesale firms were approximately Purchases by retail dealers from wholesalers fell off perceptibly during April from the high 1 per cent greater during April, 1920, than purchasing activity of March. A summary of during April, 1919. In all reporting wholesale lines; with the exception of groceries, where the reports which were received follows : sales during April exceeded those in March by Sales in April com- Stocks Apr. 30 com- 11.2 per cent, April sales were from 7 to 18 per pared with— pared with— cent less than during the preceding month, although from 15 to 40 per cent greater than Previous Year ago. Previous Year ago. during the same month in 1919. While the month. month. price tendency continues upward, retail stores report a softening in prices of a few commodiPer cent. Per cent. Per cent. Per cent. +15 ties, wholesale dry goods stores report a tend+30 Same. Same. Furniture. +25 - 5 -10 -20 Millinery.. +25 ency for prices oi silks to decline, and whole+ 100 -20 —15 Dry goods + 5 sale boot and shoe firms report a noticeable + 40 - 5 - 3 Drugs -25 + 24 -20 + 7.5 Groceries.. tendency for prices to decline. A statement of increases in wholesale trade of reporting Outstanding orders for stocks at the close of firms in the principal cities of this district for April to total purchases during the calendar April, 1920, as compared with April, 1919, is year were reported by these houses as follows: given below: Millinery, 5 per cent; dry goods, 25 per cent. Increases in sales in April, DISTRICT NO. 11 (DALLAS). 1920, over April, 1919. Reports from wholesalers for the month of HardDry Groceries. Total.i April reflect a distinct lull in the buying moveware. goods. ment during that month. Among the causes which contributed to the reaction were: UnPer cent. Per cent. Per cent. Per cent. 61.0 Angeles 24.0 56.1 seasonable weather conditions, transportation Los Oakland 38.1 Sacramento 36.7 35.4 difficulties, price resistance, and retail stock San Francisco 48.2 29.3 57.8 49.6 replenishments in March. April sales, however, Portland 30.6 12.4 80.4 52.5 25.1 Salt Lake City 19.6 in all of the reporting lines except automobile Seattle 36.9 54.2 33.3 11.5 103.5 38.4 60.9 31.5 supplies and farm implements, reflected heavy Spokane 48.8 37.0 Tacoma 49.7 gains over sales for the corresponding month 48.0 25.8 District 46.6 42.5 last year. Comments of wholesalers are to the effect that the outlook is for a slower pace in 1 Including reporting drug and boot and shoe firms. trade for the balance of the year, with no imNOTE 1.—District for reporting drug firms: Portland, 20.7 mediate prospect of the downward turn in per cent; district, 23.5percentage per cent. prices which eventually is expected to be the NOTE 2.—Percentages for reporting boot and shoe firms: San Fran69.8 per cent: district, 16.7 per cent. next broad movement in the price situation. cisco, The above table is based upon returns received from 75 establishments, which 12 are wholesale dry goods, 27 wholesale grocery, 8 wholesale Detailed statistics on the condition of whole- ofdrug, 20 wholesale hardware, and 8 wholesale boot and shoe firms. sale trade, based on April operations of ouf reporting firms, are given below. April, 1920, wholesale trade, compared with March, and April, 1919. 1920, [+ increase; — decrease.] Compared with— Mar., Apr., Mar., Furniture Apr., Mar., Auto supplies Apr., Mar., Drugs.. Apr., Mar., Dry goods Apr., Mar., Hardware Apr., Farm implements... Mar., Apr., Groceries 1920 1919 1920 1919 1920 1919 1920 1919 1920 1919 1920 1919 1920 1919 Sales. Selling price. at Ship- Stock end of ments. month. Per cent. Per cent. Per cent. Per cent. + 2 + 6 + 4 —14 +48 +57 +26 +18 + 8 + 5 +33 +45 -30 -39 Same. Same. -13 -23 + 16 +10 -16 -16 + 3 +46 + 11 +46 + 8 - 8 o + 5 +21 +45 +16 +45 + 1 + 5 - 3 -10 + 8 -24 +39 +45 Same. + 6 2 7 -27 -14 + 12 + 5 + 5 LEVEL OF INTEREST AND DISCOUNT RATES. In April all Federal Reserve districts reported a high level of interest and discount rates, while several districts mentioned the fall in the demand for commercial paper, due to the fact that the country banks which had previously been heavy buyers of such paper then had their funds fully employed at home. The situation has remained substantially unchanged in May except that in general further advances in interest and discount rates have occurred, and the demand for credit accommodation has been intensified by the inability to market goods, occurring at a time when the spring need of funds in agricultural districts is normally heavy. 572 FEDERAL BESBRVE BULLETIN. JUNE, 1920. quiet, with the supply of bills in excess of the demand. Rates advanced to a basis of 6 | per Discount and money rates have slightly in- cent for prime 90-day bills. creased in the district during the month. The prevailing rate for call loans has been 8 per DISTRICT NO. 3 (PHILADELPHIA). cent for almost the entire period under review. The rates for commercial paper have become Commercial loans have been made at rates more firm. The general rate in this district is varying between 7 and 7£ per cent, one banker even stating that he could have loaned con- now 7£ per cent, though some of the best names siderable money at 7 | per cent had he so de- command a somewhat lower rate. The supply sired, although no actual quotations at this is fairly good, but demand from city institurate has been recorded. Open-market oper- tions continues small, most of the buying ations in acceptances have increased somewhat, coming from the country. with rates ranging between 6 | per cent and DISTRICT NO. 4 (CLEVELAND). 6i per cent for unindorsed paper, which has Money is tight. The demand for credit is been in considerable demand. Indorsed paper has been purchased to some extent by the insistent, is aggravated to a great extent by Federal Reserve Bank at slightly lower rates. large and expensive inventories and finished Commercial loans have shown a marked in- goods which can not be moved, and requires crease during the month, as have net demand the utmost vigilance on the part of the bankers deposits. These two taken together have ne- to see that proper use is made of what loans are cessitated further recourse to the Federal Re- absolutely necessary for essential industries. serve Bank, borrowings of reporting banks in Too much stress can not be laid upon this point. Boston now being $6,000,000 in excess of a Our credit possibilities are not unlimited, and month ago, although nevertheless showing a the granting of loans to nonessential industries decline of $12,000,000 since January 1, 1920. in the present situation must be at the expense The borrowings from the Federal Reserve Bank of some more necessary production and can not of the banks in Boston amounted on May 14 be condoned. The return of the general selling rate of to 76.6 per cent of the loans which this bank has made to all member banks in New Eng- acceptances to a 6 per cent basis has not land. This is an increase from 68.3 per cent stimulated business to the level of last month, although institutions and individuals that have on January 1, 1920. not formerly been in the market are slowly being drawn into purchasing this form of DISTRICT NO. 2 (NEW YORK). security. The turn in the volume of bills sold District No. 2 (New York) reports firmer is considerably less than in any month since money rates. Stock Exchange call loans the first of the year. The continued tightening ranged from 6 to 15 per cent, a rise occurring of money, as shown by the upward trend of call on each occasion when demands were out of the rates and the firm tone of the time money ordinary. Such instances were moderate with- market, has largely been responsible in retarddrawals of Government deposits from the ing the demand. The country banks that have banks, and the dividend and interest payment been the important sources of absorption are periods. This inelasticity was despite the now feeling the weight of their local requireiact that stock market liquidation released ments for money and are buying bills in funds rather than engaged additional amounts. much smaller amounts. The crop-planting Time money quotations continued largely season and the inability to move commodities nominal at 8J to 9 per cent, according to col- has caused unusually large demands for money, lateral, through most of the period. Latterly, and has been directly reflected in the accepta substantial sum was reported as contracted ance market. for, but this apparently was an exceptional DISTRICT NO. 5 (RICHMOND). case, as little new money has otherwise been offered. The freight tie-up, though it tended Bankers report sufficient funds available for temporarily to relieve demands for funds to the real needs of the district, but careful meet payments on incoming goods, increased scrutiny of applications for loans is necessary requirements of out-of-town borrowers and to prevent tying up of funds in speculative hampered the distribution of commercial paper undertakings and for capital purposes. Traffic and acceptances. Sales of commercial paper conditions are hindering efforts made by the were lighter, though rates were advanced to 7 J banks to call in some of their loans, producers per cent for best names. Country banks were being unable to liquidate their obligations practically the only buyers. Contrasting with until collections for goods sold can be made recent activity the bill market also has been after delivery. DISTRICT NO. 1 (BOSTON). JUNE, 1920. FEDERAL RESERVE BULLETIN. DISTRICT NO. 6 (ATLANTA). There is reported a good demand for funds, due principally to the necessity for making arrangements for the season's farming activities; interest rates generally appear to be steady, with increases in a few instances. A small increase in deposits is noted in reports frcm various parts of the district. DISTRICT NO. 7 (CHICAGO).^ The demand for money and credit continues exceedingly heavy. The banks in the district for some time have bought no commercial paper, their every effort being expended in the granting of credit to necessary lines of industry and business. The volume of credit available for normal requirements is greatly restricted by reason of the large volume outstanding in agricultural districts. There does not appear to be an immediate possibility of liquidating this so-called " frozen credit," much of which is traceable to the land speculation of last year. It is true that as a rule where farm land was sold a good part of the purchase price was represented by mortgage; but at the same time insurance companies and other purchasers of such securities declined to allow as much as half the supposed present value of farm lands, and this forced buyers to use their individual credit as far as possible. It is doubtful if many bankers realize to what extent this land speculation has drawn on the credit supply, as a large number of the correspondents replying to a general credit inquiry assign the necessity for loans to other reasons. Another incentive for farm borrowing is the carrying of large stocks of corn on farms which was made necessary by the fact that when the grain could have been marketed, farmers considered the price too low and held their grain, whereas now because of the transportation tie-up, it is almost impossible to move the crop to market. The transportation situation is exerting an influence on credit in several directions, causing among other things the tying up of a large volume in raw materials and manufactured goods which can not be delivered to the purchaser. DISTRICT NO. 8 (ST. LOUIS). Not one whit diminished is the demand for money in this district. On the contrary, the past month has developed a broader and more insistent inquiry than ever. The first signs of liquidation on any appreciable scale have yet to appear. Merchants and manufacturers are making known unprecedented needs, and proportionately agricultural demands are as 573 large as those for industrial purposes. Financial institutions are endeavoring to discourage all but absolutely essential borrowing, and are casting about for the best means of effecting curtailment of loans and credit inflation. The situation has been considerably aggravated by the partial paralysis in transportation, which has tied up enormous credits that might be doing service in the regular conduct of business. A further slowing down in the market for commercial paper was noted during the past month. Brokers report decreases in volume of business as high as 60 per cent under the peak period this year. Country banks are purchasing more sparingly than heretofore, and the big city institutions are not in a position to take on much paper. Rates have advanced to 7\ and 1\ per cent, with some very choice names being offered at the major figure of the spread. DISTRICT NO. 9 (MINNEAPOLIS). Banking conditions have not changed materially. The demand from the country is very heavy owing to a considerable increase in the cost of spring planting, both as to machinery, material, and farm labor. Rates retain the same levels as a month ago, and are very firm. Banks generally are encouraging their customers to restrict their borrowings to those that are necessary for the support of current business activities and agriculture, and avoid speculative operations. Loans of commercial banks at the reserve bank are much higher than normal, and are likely to continue high throughout the summer because of the serious impairment of the ability of the railroads to move traffic and consequent delay in liquidation. DISTRICT NO. 10 (KANSAS CITY). Since the adoption of the progressive discount rates by the Federal Reserve Bank of Kansas City, there have been many evidences of curtailment of credit by the larger financial and commercial institutions of tnis district. The expansion of credit continued for about two weeks after the adoption of the progressive rate, owing to seasonal demands and commitments already made. Since the 5th of Mav, however, there has been noticed a steady and consistent reduction, and it is felt that this reduction will continue gradually and on a safe and conservative basis. The only disturbing feature in the financial situation, as it applies to the Tenth Federal Reserve District, is the shortage of railroad cars in which to move the grain. It is estimated, in certain sections of the district, there 574 FEDERAL RESERVE BULLETIN. is still on hand in the grain elevators and in the farmers' bins at least 50 per cent of last year's crop. Before this can be moved, unless there is a marked improvement in transportation facilities, this year's crop will be harvested. This, of course, absorbs millions of dollars of loanable funds and prevents liquidation. While it can not be denied there is a general tendency toward curtailment of credit and that interest rates have advanced, it is felt that ample funds will be forthcoming to care for legitimate requirements of the agricultural and live-stock industry. DISTRICT NO. 11 (DALLAS). The nation-wide tension in the money market has been making itself felt in the Eleventh District. Bankers are scrutinizing the demands of their customers more closely than ever, and a number of them report that there is a healthy spirit of caution already visible in their clients' plans for the coming months. Industrial and mercantile interests appear to be fully alive to the warning that essential and productive processes must have right of way in the financing of the future, even if it necessitates the rationing of credit as a means of credit control until the dangerperiod is passed in the process of deflation. With a wise distribution of credit there seems to be no grounds for serious alarm in the matter of financing the essential requirements of the Eleventh District through the borrowing season until this year's crops are harvested. That portion of the district's revenues which comes from oil production may be expected to continue through the summer months as a helpful source of income, and, in addition, there should be a fairly steady liquidation of cotton, cotton products, and live stock. Yet with the returns from these sources in hand, it is evident from the credits which have thus far been extended by the Federal Reserve Bank of Dallas in May, and the demands already in sight for the month of June, that this district will have occasion to call on other districts for rediscount accommodations through the summer period. In April 307 banks were accommodated, against 252 in March. The increased demands oi the Eleventh District banks, due to the seasonal needs of their customers, not only absorbed the excess reserve which the Federal Reserve Bank held on March 31 in the form of $10,000,000 of paper rediscounted for other reserve banks, but made it necessary for the Dallas bank to rediscount $3,000,000 of its member banks' paper in other districts. Reports of average discount rates charged by banks in six of the larger cities of this district show but little variation from the general level of rates prevailing in March, although in the JUNE, 1920. case of cattle loans there was a sharp increase at Fort Worth, the principal live-stock center of the district, where cattle loans commanded an average rate of 8J per cent, as compared with the March quotation of 7 per cent. DISTRICT NO. 12 (SAN FRANCISCO). Interest and discount rates in industrial centers have shown a tendency to continue to stiffen during the past month, although not sufficiently to change prevailing rates previously reported of from 6 to 7 per cent. In agricultural sections the prevailing rate remains 8 per cent. EFFECTS OF THE RAILROAD STRIKE. It is generally conceded in the reports of the Federal Reserve agents that the transportation tie-up is largely the result of the railroad strike, which still continues over a large section of the country. The congestion is further accentuated by local strikes of other groups of transport workers. While the shortage of cars is acute at some points, it is evidently not the prime cause of the immediate transportation difficulties, which are due to inability to shift and to utilize existing equipment on account of shortage of labor and difficulties with inexperienced men who have taken the place of strikers. DISTRICT NO. 1 (BOSTON). No picture of current economic conditions in New England such as we attempt to draw afresh each month would be complete at this time without some portrayal of the traffic situation, which for various reasons—chiefly weather and strikes—has been such as to create unprecedented interference with shipments since practically the beginning of the year, and has necessitated partial shutdowns in industrial establishments because of failure to get materials. This district is fed from the South, West, and North by three systems of railroads—the New York, New Haven & Hartford, the Boston & Albany, and the Boston & Maine. In normal times the first mentioned has about 43,000 cars rolling on its beds, but at present has about 53,000, and with the shortage of switchmen and brakemen is unable to handle them to advantage; in addition this road is grappling with a strike of the tugboat men at its New England gateway, the Harlem River, and, as an inducement to obtain sufficient help, has been advertising for licensed engineers at $180 a month, pilots at $190, and firemen at $130 for an 8-hour day, time and a hah0 for overtime, 6 days a week all year round, JUNE, 1920. FEDERAL. RESERVE BULLETIN. 575 of freight only slightly below normal, but have still to contend with the heavy congestion of cars accumulated in the yards during previous weeks and with poor discipline and inexperienced men. With a gradual improvement in tug power, however, it is expected that this great volume of export shipments, much of which has been in the railroad yards several weeks, will be shipped out. The car movement figures of a road which in the last half of April moved 15 per cent fewer cars than in the same period in 1919 has so improved now that in the first 2 weeks of May this movement was but 2 per cent below last year. In relieving this freight congestion recourse has been made to automobile trucks and to the New York State Barge Canal system, though the high cost and restricted supply of trucks and the lack of boats and slowness of canal transportation have limited results from both. Quantities of food have piled up at the piers as the result of the truckmen's strike. They went out in sympathy with the striking longshoremen. There have been several other DISTRICT NO. 2 (NEW YORK). strikes which were quickly settled, but a strike of captains and engineers of tugs handling The cumulative effect during the past month train ferries in New York Harbor is still in of six separate strikes of various classes of progress. workers on the transportation lines, both rail and water, has been vastly to increase the car DISTRICT NO. 3 (PHILADELPHIA). shortage and freight congestion in the railroad yards, to limit exports, and either to curtail The serious condition of the railroads should production or stop work entirely in a large not be minimized. In conjunction with the number of factories in this district. Supplies shortage of equipment, the strikes of the operaof dead freight have been held in the railroad tives have caused embarrassing delays in the yards several weeks at a time, while every moving of all kinds of freight. Railroad effort has been made to deliver coal and food embargoes are causing an accumulation of products. Even these shipments have been goods at factories and in warehouses, thus carried only with the greatest difficulty. increasing the apparent scarcity of goods for The transportation lines were not yet operat- sale and locking up an immense amount of ing normally following the general walkout of money. Greater use is now being made of railroad men in April when a second strike of motor trucks for short hauls, and transporswitchmen blocked through traffic in the Buf- tation over the inland waterways is becoming falo district. In addition strikes of harbor more active than heretofore. workers in both Buffalo and New York and The situation in the coal industry at the truck drivers and longshoremen in New York present time is very acute. The supply is far resulted for a time in a tie-up of a large part below the demand, and consumers are bidding of the water transportation system of the dis- against each other for the available supply in trict. In consequence Great Lakes grain boats their efforts to obtain sufficient fuel to continue were often unable to unload their cargoes at operating their industries. This, together with the Buffalo elevators, and the railroads in the export demand, has caused a new high New York, unable to lighter the export ship- price level for both bituminous and anthracite ments through lack of tugs, were forced to coal. place an embargo on these shipments. As a The small supply can be attributed primarily result the export movement by the railroads to the shortage oi railway cars. While nomiappears only about 50 per cent of normal at nally settled the "outlaw" strike is still having its effect on car movements. " I n switching present. During the past three weeks the situation territory of Jersey City," one operator writes, has clarified somewhat, though all of the "not more than half of the normal number of strikes continue with greater or less intensity. switching crews are at work. More than half of Most of the roads are now carrying a volume these crews are made up of green men who permanent positions. While the work of filling the strikers' places is slow, the road claims it is gradually making progress toward normal conditions. The normal capacity of the Boston & Albany is 800 to 900 cars per day, but for some time it has been moving about 1,000, without, however, materially clarifying the situation, it being recently reported that there were 4,200 cars in the yards at Albany with thousands back of these. The Boston & Maine is moving about 800 cars per day, which is more than its normal capacity, and its yards at Mechanicsville and Troy are choked with cars diverted to their lines. AH three roads claim they are clearing their roads as far as possible for food supplies, for coal and fuel oil, and whenever there is opportunity permits are issued for the movement of nonessentials. The situation, serious as it has been, however, has not approached a collapse of transportation facilities and the activity of the Interstate Commerce Commission at this writing is giving hopes for early and substantial improvement. 576 FEDERAL, RESERVE BULLETIN. look upon themselves as strike breakers, who earn their pay for merely staying on the job. They make little pretense of working. Railroads are more or less the victims of systematic sabotage at their terminals. Switches are spiked even in broad daylight. Avoidable wrecks of minor character constantly occur. Train crews report for work and then mysteriously disappear, causing all sorts of delay and confusion. This sort of thing obtains particularly in the more important terminals— Jersey City, Buffalo, Cleveland, Columbus, Pittsburgh, and Youngstown." DISTRICT NO. 4 (CLEVELAND). Transportation conditions continue to dominate the iron and steel industry. The past month, by reason of the curtailed movement both of incoming raw material and outgoing finished material due 7to the stubborn persistence of the switchmen s strike, has been one of constant struggle on the part of the mills and furnaces to maintain operations. Many plants have been forced to shut down entirely or to greatly reduce their output by reason of these two main influences. After passing through several weeks of uncertainty wherein conditions have been changing almost daily between some improvement and less favorable outlook, the situation at the present time is a little more hopeful. At the same time embargoes still are in force at many points, with little possibility of their being lifted for some time. Mill and furnace yards are piled high with unshipped product and production is on a greatly reduced scale, so that the restoration of normal conditions probably will be a matter of protracted date of the indefinite future. The tie-up that has obtained in some of the large producing districts such as in the Pittsburgh zone, in the Mahoning and Shenango Valleys, Cleveland, and elsewhere, has been practically without parallel owing to the density of the plants and industrial operations in that territory. Operations have been dependent largely upon the moving of materials by full train loads, but this necessarily has been restricted, and thousands of tons of rolled steel and pig iron awaiting delivery have added to the already considerable stocks on the yards of the manufacturers. The effect of the general freight blockade has been one of cumulative force on the consumers of iron and steel who necessarily are dependent in their operations on an uninterrupted supply of incoming material. One of the most disquieting phases of a transportation situation has been the interference with the lake coal and iron ore traffic. Many vessels have been held in lower lake ports because of the lack of fuel and cargo coal, the JUNE, 1920. latter of which they should be handling vigorously for the Northwest at this time. The situation has been complicated by the strike of dock handlers at the head of the lakes which now has been adjusted. It is estimated that at the present time about 60 per centfof the total ore vessel capacity of the lakes is in action. The result of these conditions promises to be a material cutting down of the expected season's movement of iron ore and a shortage of coal at the northern points. The effect has been felt already in the Lake Superior mining regions, where some curtailment of operation has been forced. Where a 60,000,000-ton ore movement for 1920 has been protracted, ore operators now have dropped their estimates to 55,000,000 tons, and this probably will have to be revised lower as the loss of cargoes is continued. During April the lake ore movement by water amounted to 230,854 tons as compared with 1,412,239 tons for the corresponding month in 1919. The switchmen's strike does not appear so hopeful as it did 30 days ago. Chambers of commerce throughout the United States have been asked by the Cleveland chamber to urge their members to send into the railroad yards such employees as have had switching experience, in an effort to relieve congestion and keep goods moving. It is yet too early to determine what effect this will have on the general situation. Transportation at various points in the district is moving at from 25 to 75 per cent of normal, with the inevitable result that goods are piling up on shipping platforms in immense quantities—in some cases beyond the ability of the producer to finance it. DISTRICT NO. 5 (RICHMOND). At this writing, the most serious cloud on the horizon is the traffic tangle. The outlaw strike in April greatly added to the already distressing shortage of equipment by tying up thousands of cars at junction points, thus as effectively removing them from useful work, for the time being, as though they had been destroyed. Manufacturers can not market their products, coal mines can not operate full time, and farmers can not secure fertilizers and machinery until some solution of the railroad congestion is reached and applied. The outstanding event in labor circles during April was the switchmen's strike in the great eastern commercial and railroad centers, but while the effects of the strike were felt keenly in the Fifth District, it did not spread into our territory. Locally, labor appears fairly well satisfied, and no trouble has been reported. JUNB, 1920. FEDERAL RESERVE BULLETIN. DISTRICT NO. 6 (ATLANTA). Lumber and coal shipments have been especially affected in District No. 6 by lack of cars. It is said t h a t ' ' With the advent of more favorable weather throughout the southern pine territory, production is gradually becoming heavier. Existing embargoes, however, and the danger of others being declared without warning discourage efforts to move stock, while unseemly delays are encountered by shipments that have been forwarded." The coal production in the Birmingham district is being held down by reason of the shortage in railroad cars. A number of mines along the railroads are complaining of the car shortage. The railroads of the district have practically all placed their orders for fuel for the next 12 months, the amount in every instance being larger and the price higher than ever before. The contracts provide against strikes and further labor advance. A few thousand tons of coal are being shipped to France, but no effort is being made to obtain foreign trade either in coal or coke until the market at home has been supplied. The car shortage, however, is causing the loss of time by mines which are unable to load. DISTRICT NO. 7 (CHICAGO). One of the most vital and at the same time one of the most disturbing factors of business to-day is an extremely unsatisfactory transportation situation which has a twofold effect, namely, on manufacturers and on credit. When the switchmen went on strike more than a month ago, the railroads were alreadv in bad shape because of a shortage of cars in face of a record-breaking tonnage offered, and this condition has been aggravated by the inability of the railroads to get cars moved. Every effort has been expended by railroads themselves and their results have been remarkable; but the immensity of the difficulties before them have proven almost insurmountable. Freight continues to pile up at practically all leading yards and terminals in the district, and the country as well, and the congestion has become so serious, because of its many ramifications, as to be the subject of great concern. There are a number of instances within the confines of the Seventh Federal Reserve District where plants have been forced to shut down completely owing to inability to obtain either fuel or raw materials with which to operate factories. Still other plants in large numbers are running on famine rations and face exhaustion soon unless they can get relief. The grain trade is practically demoralized because of inability to get cars to move grain 577 from country elevators to terminal markets. This feature alone contains several serious aspects. Farmers can not dispose of their grain because of the glut in country elevators and the grain dealers can not get the cars to ship the commodity they handle, which renders it impossible to make the drafts that would release a huge volume of credit now tied up in the grain trade. Unless this situation rights itself soon, it is bound to cause a jump in the price of all grain and the things grain produce, including live stock, milk, flour, and other grain products. Cattle feeders now are losing more money on cattle that are being marketed than they have at any time in the history of the trade, and in most cases they are losing fully as much as they made on feeding operations last year, according to a prominent live stock commission merchant. It is predicted in the trade that during the summer and the early fall months the number of cattle on feed and marketed will be extremely light. Production in all lines is greatly restricted by reason of the adverse railroad situation. One of the best examples of this is in the steel industry where producer and consumer alike are seriously affected by the shortage of fuel and raw materials. As a consequence the scarcity of steel is less apparent than it would be if only producers were affected; nevertheless the pressure of delivery is most insistent, but the mills are unable to come anywhere near supplying the demand because of inability to achieve heavy production. DISTRICT NO. 8 (ST. LOUIS). Effects of the switchmen's strike have fallen heavily upon manufacturers. In numerous instances supplies of raw materials have been cut off or greatly curtailed, and quite as serious as this phase has been the inability to ship out finished products. Lessened or suspended operations have released operatives, and by certain authorities it is estimated about 5 to 10 per cent fewer persons are employed in strictly manufacturing industries than when the strike began, April 8, and the normal output of the plants has diminished in approximately the same proportion. As contrasted with a year age, tne month's totals in many lines develop big gains. Elsewhere steady averages are shown, and in a few cases there are decreases. Compared with the preceding month this year the showing is not so favorable, taken as a whole, as between months since last December. Vegetables and small fruits have suffered from deluges of rain, and marketing of southern produce is hampered by shortage of cars and the switchmen's strike. * * * From some sections of the district, especially those most af- 578 FEDERAL RESERVE BULLETIN. fected by the railroad strike, there are complaints of scarcity and high cost of seeds. The movement of live stock showed an astounding shrinkage in April as compared with the same month in 1919 and last March. The decrease was caused by the switchmen's strike and car shortage. Raisers and feeders have sustained material losses through inability to ship their stock to market, and the outlook for the immediate future is not bright. Farmers are not buying stocker and feeder cattle as heavily as usual at this season. Scarce and expensive credits and the high cost of feeds, coupled with dubious transportation service, are taking the attractiveness out of stock fattening at the moment. DISTRICT NO. 9 (MINNEAPOLIS). The Minneapolis flour mills report for five weeks ending May 1 an output equal to 41 per cent of capacity ass compared with 71 per cent a year ago. Other mills in the Ninth District report in the same weeks about 29 per cent of capacity as compared with 65 per cent a year ago. The problem of securing sufficient transportation equipment is a contributory cause to this decline. DISTRICT NO. 10 (KANSAS CITY). The only disturbing feature in the financial situation, as it applies to the Tenth Federal Reserve District, is the shortage of railroad cars in which to move the grain. It is estimated, in certain sections of the district, there is still on hand in the grain elevators and in the farmers' bins at least 50 per cent of last year's crop. Before this can be moved, unless there is a marked improvement in transportation facilities, this year's crop will be harvested. The movement of live stock to the markets of the Tenth Federal Reserve District was heavily broken into during a part of April by railroad troubles, due to strikes and embargoes. A total of 25,785 cars of liv^e stock was received at the six markets during the month, which is 5,147 cars less than were received in March of this year and 3,110 cars less than were received in April of last > ear. Compared with the record for April, 1919, this year's April receipts were 18.4 per cent less on cattle, 11.5 per cent less on calves, 16.5 per cent less on hogs, and a gain of 4.5 per cent on sheep and 27.7 per cent on horses and mules. Up to the time of tne switchmen's strike in April cattle prices were gradually seeking lower levels than at the close of March, but during JUNE, 1920. the strike there were wide fluctuations and the breaks were heavy both ways. The railway switchmen's strike and its accompanying complications have also seriously affected mining operations in the zinc and lead districts in that it has tied up a very large amount of ore in transportation between the district and the smelting points. For some time the buyers took the ore as usual, but finding it impossible to get the ores shipped, discontinued buying, but did load all the cars that they could obtain with the ores previously purchased. This is the reason for the heavy shipments reported this month, although the ores have not yet reached their destination. The railway strike also affected incoming supplies, and many things required in mining operations are out of hand entirely or in transit. This is causing considerable difficulty among mine operators to keep their plants going. Another complication affecting the district was the coal strike in Kansas, which affects practically the entire coal consumption of the zinc and^ lead mining districts of Missouri, Kansas, and Oklahoma, and when it is cut off simultaneously with a railway strike makes it impossible to secure coal from other sources, and this has been a serious handicap in some instances where coal is depended upon for fuel and power. DISTRICT NO. 11 (D ALL AS). Drouths, strikes, car shortage, and unsettled market conditions were contributory factors in the sharply checked live stock movement in the month of April. During the early part of the month while the switchmen were on strike, trading was suspended entirely. With the restoration of railroad service, however, shippers resumed operations with a rush that at times threatened a serious glut at the Fort Worth market, resulting in a number of consignments being diverted to other markets. Some improvement in the car supply of this district was noted in the month of April, particularly in the Panhandle section, where a shortage of 2,000 cars, needed to move wheat, created a serious situation for a time, although the railroads now have the situation well in hand. Some improvement, too, is observed in the practice of making minimum car-lot shipments of merchandise. While this practice is still in evidence in the case of products of factories that are behind with their shipments, and as applied to certain commodities, such as fancy groceries, on which prices are still soaring, there is a general tendency to load cars to capacity, thus eliminating one of the abuses of transportation facilities which formerly figured to a large extent in the car shortage. JUNE, 1920. FEDERAL RESERVE BULLETIN. DISTRICT NO. 12 (SAN FRANC IS CO). Car shortage continues to restrict lumbering operations in the Pacific Northwest. During the five weeks ending May 8 an average of 124 mills reported a cut of 438,490,000 feet, 3.7 per cent below normal; orders of 317,771,000 feet, 27.5 per cent below cut; and shipments of 349,914,000 feet. Unfilled orders on May 8 aggregated 411,227,000 feet, of which 274,050,000 feet were rail orders, 53,207,000 feet domestic cargo orders, and 83,970,000 feet export orders. During the four weeks ending May 8 an average of 12 California redwood mills reported a cut of 26,447,000 feet, shipments of 24,421,000 feet, and orders accepted of 22,398,000 feet, as compared with a cut of 26,359,000 feet, shipments of 23,386,000 feet, and orders accepted of 24,669,000 feet during the preceding four weeks. Financial Conference At Washington. On May 18 a conference was held at Washington between the Federal Reserve Board, members of the Federal Advisory Council, and the Class " A " Directors of the 12 Federal Reserve Banks. The question of credit control was considered, and the present situation in the various districts was discussed, including the methods which had been adopted in dealing with the problem and the success with which they had been attended, with a view to the formulation of a general policy. The conference was preceded by the regular quarterly meeting of the Federal Advisory Council on May 17, at which the same topic was considered. Governor Harding opened the conference with the following remarks: Figures compiled by the Board's Statistical Division indicate that since June 30, 1914, there has been an expansion of banking credit in the United States, properly attributable to the war, of about $11,000,000,000. Since that date there has been an increase in money in actual circulation of about $1,900,000,000. When it is considered that our GoA^ernment has during the past three years floated $26,000,000,000 of securities to meet its war requirements and its advances to Governments associated with it in the war, the credit expansion which has taken place is neither excessive nor alarming when viewed from the standpoint of war necessity. The continued expansion, however, which has occurred since the flotation of the Victory loan last May in the face of a decreased production of essentials is one of the disquieting features of the present situation. The expansion of national bank credits was 16 per cent, or at the rate of 10J per cent a year, during the 19 months of the war. From April 1, 1919, to April 1, 1920, the increase in bank loans was approximately 25 per cent, and during the same period the rise in commodity prices was about 26 per cent. Assuming an index number of 100 for the year 1918 for each of the following—live stock, grain, lumber, coal, petroleum, pig iron, steel ingots, copper, and cotton and wool actually consumed—the average index number for 579 the same articles in 1919 is 89.07. While neither of these indexes can be accepted as definitive evidence of the trend of production in this country, they do indicate a falling off of at least 10 per cent in the actual output or marketing of goods in 10 important lines. While production figures for the first quarter of the present year in some leading lines, such as soft coal, steel, cotton, and wool, are indicative of greater industrial effort, the difficulties in the transportation field, which became acute during April, are bound to affect both the production and shipment figures for the last two months. It is this tendency of production to decline, particularly in some essential lines, which constitutes a very unsatisfactory element in the present outlook. It is evident that the country can not continue to advance prices and wages, to curtail production, to expand credits and to attempt to enrich itself by nonproductive operations and transactions without fostering discontent and radicalism, and that such a course, if persisted in, will eventually bring on a real crisis. There is a world-wide lack of capital, and with calls upon the investment market which can not be met there is an unprecedented demand for bank credits. The fact must be recognized that however desirable on general principles continued expansion of trade and industry may be, such developments must accommodate themselves to the actual supply of capital and credit available. Official bank rates now in force in the leading countries are higher than at any time during the present century, except during the war panic week at the beginning of August, 19] 4. Only within the last few weeks the official rate in Italy has been raised from 5 to 5^> the Bank of France rate from 5£ to 6, and the Bank of England rate from 6 to 7 per cent. Every effort should be made to stimulate necessary production, especially of food products, and to avoid waste. Planting operations in many sections have been delayed because of adverse weather conditions, and should there be an inadequate yield of crops this year the necessity for conservation and conservatism will be accentuated. War waste and war financing result inevitably in diminished supplies of goods and increased volume of credits. The normal relationship between the volume of goods and the volume of money and credits thus unsettled can be restored in either of two ways—one, the drastic method of contraction of credit, and the other, by far the more desirable way, increased production. In the same way progress toward "the restoration of the normal relationship may be made by reducing credit more rapidly than production is diminished, or by increasing production at a greater rate than credit is expanded. If it should prove impracticable in the existing circumstances to increase essential production, then we must through economv in consumption and through moderation in the use of credit check the tendency toward a further widening of the margin between goods and credit. Our problem, therefore, is to check further expansion and to bring about a normal and healthy liquidation without curtailing essential production and without shock to industry, and, as far as possible, without disturbance of legitimate commerce and business. As a rule there is a substantial reduction in the volume of commercial loans during the first quarter of the year. This liquidation is entirely natural and healthy and is necessary in order that the banks may be prepared to meet the demands made upon them during the crop-making and harvesting seasons. There has been no such liquidation during the present year; on the contrary, commercial loans have steadily increased. Thus the public has anticipated demands for banking credit which are usually made later on in the year. The average reserves of the Federal Reserve Banks are now about 42 per cent, as against 45 per cent at the beginning of the year, and about 51 per cent 12 months ago. The solution of the problems confronting us will require the cooperation of all banks and the public. Whatever 580 FEDERAL RESERVE BULLETIN'. personal sacrifices may be necessary for the general eco nomic good should be made. The war-time spirit to do things that are worth while must be revived, and there should be the fullest cooperation in an effort to produce more, save more, and consume less. The banks should lean less heavily upon the Federal Reserve Banks, and rely more upon their own resources. Unnecessary and habitual borrowings should be discouraged, and the liquidation of long standing nonessential loans should proceed. Drastic steps, however, should be avoided and the methods adopted should be orderly. Gradual liquidation will result in permanent improvement while too rapid deflation would be injurious and must be avoided. There should be a clear understanding of the parts to be played by the Board, the Federal Reserve Banks, and by the member and nonmember banks and trust companies. With respect to credits, the problems of the Federal Reserve Board, the Federal Reserve Banks, and the member banks, while interrelated, are distinctive. The Federal Reserve Board has but little direct contact with the member banks; it deals with general conditions and principles rather than with individual cases and details. The Federal Reserve Banks, on the other hand, are in daily contact with their member banks and have constant dealings with them. Between the Federal Reserve Banks and the Federal Reserve Board, as the supervisory and coordinating body, there is necessarily a close and intimate relationship. The member banks transact the greater part of the primary banking business of the country. They receive the deposits of the public and are the media through which ordinary commercial credits are extended. The primary duty of the Federal Reserve Board is to see that tjie Federal Reserve Banks function normally in the manner prescribed by the Federal Reserve Act. The character of business which may be engaged in by the Federal Reserve Banks is described in detail in sections 13 and 14 of the Federal Reserve Act, and all regulations of the Board bearing upon the loans and investments of the Federal Reserve Banks must be in conformity with the provisions of the law. Regardless of the extent of its legal powers, it would be a most difficult task for the Federal Reserve Board, sitting in Washington, to attempt by general rule of country-wide application to distinguish between "essential" and "nonessential" loans. During the war there was a broad underlying principle that essentials must be "necessary or contributory to the conduct of the war,'7 but notwithstanding the sharp outline of this principle much difficulty was experienced by the various war boards in defining essentials and nonessentials. All the more difficult would it be for the Federal Reserve Board to make such a general definition now when there is no longer that purpose as a guide. The Federal Reserve Board is not a temporary organization. It is a permanent board, and it must be guided by the terms of the Federal Reserve Act. Section 13, in defining the eligibility of paper for discount by Federal Reserve Banks, lays down the general rule that any paper maturing within the time prescribed, and issued or drawn for commercial, agricultural, or industrial purposes, or the proceeds of which have been used or are to be used for such purposes, is eligible. No express condition is made regarding the essential or nonessential character of the transaction giving rise to a note which may be offered for discount, and the Federal Reserve Board is not required and properly could not be expected generally to adopt such a criterion of eligibility. It is too much a matter of local conditions and local knowledge to justify at this time any general country-wide ruling by the Board even if such a ruling were deemed helpful. On the other hand, there is nothing in the Federal Reserve Act which requires a Federal Reserve Bank to make any investment or to rediscount any particular paper or class of paper. The language of both sections 13 and 14 is permissive only. Section 4 of Federal Reserve Act, however, requires the directors of a Federal JUNE, 1920. Reserve Bank to administer its affairs "fairly and impartially and without discrimination in favor of or against any member bank," and subject to the provisions of law and the orders of the Federal Reserve Board to extend "to each member bank such discounts, advancements, and accommodations as may be safely and reasonably made with due regard for the claims and demands of other member banks." Thus the directors of a Federal Reserve Bank have the power to limit the volume and character of loans which in their judgment may be safely and reasonably made to any member bank. The recent amendment to paragraph (d) of section 14 distinctly authorizes each Federal Reserve Bank on its own account, without reference to action taken by any other Federal Reserve Bank, to establish a normal discount or credit line for each member bank, and permits the imposition of graduated rates on discount lines in excess ot the normal lines. This amendment, however, does not repeal or modify sections 4 and 13, and a Federal Reserve Bank is still free to decline to discount any paper which in its judgment does not constitute a desirable investment for it or which in its opinion would not constitute a safe and reasonable investment within the meaning of section 4. It is the view of the Board, however, that, while Federal Reserve Banks may properly undertake in their transactions with member banks to discriminate between essential and nonessential loans, nevertheless that discrimination might much better be made at the source by the member banks themselves. The individual banker comes in direct contact with his customers; he is better qualified than anyone else to advise the customer because of his familiarity not only with the customer's business but with the general business conditions and needs in his immediate locality. In making loans he is bound by no general rule of law as to the character of the purpose for which a loan is being asked. He is entirely free to exercise discretion and can make one loan and decline another as his judgment may dictate. He can estimate with a fair degree of accuracy the legitimate demands for credit which are liable to be made upon him, as well as the fluctuations in the volume of his deposits. He knows what industries sustain his community, and is thus qualified to pass upon the essential or nonessential character of loans offered him. He knows, or should know, what rediscount line he may reasonably expect of his Federal Reserve Bank, and he ought not to regard this line as a permanent addition to his capital. With knowledge of the limitations or penalties put upon his borrowings from the Federal Reserve Bank the banker may be depended upon to use a more discriminating judgment in granting credit accommodations to his customers, and that judgment he must exercise if the present situation is to be remedied fundamentally. It is true that under existing conditions the volume of credit required in any transaction is much greater than was the case in prewar times, but it is also true that the resources of the member and nonmenber banks would be ample to take care of the essential business of the country and to a large extent of nonessentials as well if there were a freer flow of goods and credit. If "frozen loans" were liquefied, and if commodities which are held back either for speculative purposes or because of lack of transportation facilities should go to the markets, and if large stocks of merchandise should be reduced, the resultant release of credit would have a most beneficial effect upon the general situation. In the meantime everything must be done to expedite the release of these credits and to restrict nonessential credits in future. While the problem of credit regulation and control is national and even international in its scope, yet in the last analysis it is merely an aggregation of individual problems, and the proper working out of the situation must depend upon the public and upon the banks which deal with the public. The public must be made to realize the necessity of economy in expenditures and in consequent demands for banking credit. JUNE, 1920. FEDERAL RESERVE BULLETIN. The banks themselves are best able to impress the importance of this policy upon the public. The Federal Reserve Banks may be depended upon to do their duty to the member banks and the public, but to accomplish results the banks and the public must do their part in accelerating the processes of production and distribution and in restricting waste and extravagance. In the discussion which followed the address, the directors of several of the Federal Reserve Banks in turn described conditions prevailing in their respective districts. The general consensus of opinion was that the situation was well in hand and that a check to further expansion, if not some liquidation, might be expected in some districts during the next few months. The directors of several of the Federal Reserve Banks described methods, both by conference and by correspondence, which were being employed to reach member banks and business men in their district. There was general agreement as to the soundness of the views expressed in the address, and the need for enlisting to the fullest extent the cooperation of each banker and business man. Accordingly, the following resolution was adopted: 581 freight cars in service during the same period increased 1.9. per cent. A striking situation exists which can only be relieved through the upbuilding of the credit of the railroads. This must come through adequate and prompt increase in freight rates. A.ny delay means the paying of a greater cost, directly and indirectly, and places a burden on the credit system which, in the approaching time for seasonable expansion, may cause abnormal, high-price level and extravagances. The bank reserves would probably be sufficient if quick transportation would be assured during the time of the greatest strain. Therefore be it resolved, That this conference urge as the most important remedies that the Interstate Commerce Commission and the United States Shipping Board give increased rates and adequate facilities such immediate effect as may be warranted under their authority, and that a committee of five be appointed by the Interstate Commerce Commission and the United States Shipping Board with such verbal presentation as may seem appropriate to the committee. Discussion Was had of the plan of imposing graduated rates for rediscounts in excess of basic lines fixed for member banks. It was stated that the plan was meeting with general favor among member banks in the Kansas City district, and it was believed that it would be of material aid in improving the situation. The general level of rates was also considered, as well as certain aspects of practice relative to bankers7 acceptances, in particular the matter of a preferential rate, and the inclusion of acceptances purchased from member banks as part of the member banks' discount lines, the latter being generally opposed. Following is the report of the Council made to the Board on May 18, signed by James B. Forgan, president: Resolved, That the bankers here assembled, in their capacity as members of the Federal Advisory Council, in their capacity as directors of the Federal Reserve Banks of the country, in their capacity as members of the Orderly Deflation Committee of the American Bankers Association, and in their capacity as officers and directors of banks doing business in the various cities of the country, approve the sentiments expressed in the very able address of Governor Harding as representing the views of the Federal Reserve Board; And also be it Further resolved, That they believe that the widest The Council has given consideration to the matters publicity should be given the address, and, further, that they hereby agree to abide by the spirit of the address in included in your communication of April 17 and begs to the conduct of their own affairs, and that they will en- reply thereto in the following manner, following the order courage its general adoption by the bankers and people set out by you. of our country. (a) "Causes of continued expansion of credits and of Federal Reserve note issues." The effect of the transportation situation There are many contributing causes of which the followupon the credit situation through increased ing may be regarded as paramount: (1) We recognize, of course, that the first cause is the need for bank credit was generally remarked, Great War. and there was a disposition to attribute much (2) Great extravagance, national, municipal, and of the continued heavy demand for credit to individual. this cause. A resolution was accordingly (3) Inefficiency and indifference of labor resulting in production. adopted stressing the need for increased lessening (4) A shortage of transportation facilities, thus prefacilities and was presented by a committee venting the normal movement of commodities. of five directors on May 19 to both the Inter- (5) The vicious circle of increasing wages and prices. (6) "How can the reserve position of the Federal state Commerce Commission and the Shipping Reserve Banks be materially strengthened before the Board. The resolution follows: seasonal demand sets in next fall without undue disturbThe whole country is suffering from inflation of prices, ance of the processes of production and distribution?" with the consequent inflation of credit. From the reports By urging upon member banks through the Federal made by the members of this conference, representing Reserve Banks the wisdom of showing borrowers the every section of the country, it is obvious that great sums necessity of the curtailment of general credits, and espeare tied up in products which if marketed would relieve cially for nonessential uses, as well as continuing to disnecessity, tend to reduce the price level, and relieve the courage loans for capital and speculative purposes; by checking excessive borrowings through the application of strain on our credit system. This congestion of freight is found in practically all of higher rates. the large railroad centers and shipping ports. It arises (c) "If steps can not be taken at this time leading to a chiefly from inadequate transportation facilities available more normal proportion between the volume of credits at this time, and is seriously crippling business. We are and the volume of goods, when can they be taken? " informed that the per-ton mile of freight increased in In our opinion steps should be taken now, as outlined three years—1916,1917, and 1918^7J per cent, while the in answer to the last question. 582 FEDERAL, RESERVE BULLETIN. (d\ "What is the effect upon the general situation of the increased Treasury borrowings and what should be the policy of the Federal Reserve Banks in establishing rates of discount on paper secured by certificates of indebtedness? " It is obvious that the borrowings of the Treasury have the same effect upon the general credit situation as those of other borrowers. The Council would suggest the wisdom of congressional relief from the burden of Government financing by a policy of rigid economy; the revision of the tax laws for the sake of a more equitable distribution of the burden without reducing the revenue; the enactment of the budget system, the budget to include provision for the gradual payment of the short-time obligations of the Treasury. These would of necessity preclude unwise appropriations, such as the proposed soldiers' bonus. In view of the large volume of Treasury certificates of indebtedness carried by member banks at the instance of the Treasury Department, we believe that rates established by the Federal Reserve Banks on paper secured by them should not be materially greater than the rates borne by the certificates. (e) '' Should there be a revision of rates on paper secured by Liberty bonds and Victory notes?" From a survey of the present rates in force by the Federal Reserve Banks it would seem that 6 per cent is now being charged on paper secured by Liberty bonds and Victory notes. In the judgment of the Council, when and if any further revision of rates should be made there should be shown due consideration for the original subscriber of Government securities. Discount Policy of the Reserve Banks. In response to a resolution of the Senate, the Federal Reserve Board on May 25 transmitted to the President of the Senate the following letter: MAY 25, 1920. SIR: On May 17, 1920, the Senate adopted the following resolution: " Resolved, That the Federal Reserve Board be directed to advise the Senate what steps it purposes to take or to recommend to the member banks of the Federal Reserve System to meet the existing inflation of currency and credits and consequent high prices, and what further steps it purposes to take or recommend to mobilize credits in order to move the 1920 crop." In response, the Board desires to say that it has recognized for many months past that the expansion of bank credits in this country was proceeding at a rate not warranted by the production and consumption of goods. It has repeatedly admonished the Federal Reserve Banks that influence should be exerted upon the member banks to induce them to avoid undue expansion of loans and to keep their volume of outstanding credits within moderate bounds. Beginning six months ago the rates of discount on various classes of paper at the Federal Reserve Banks were advanced. During the latter part of January the present rates were put into effect. These advances, while undoubtedly checking credit transactions which otherwise would have been made, have not been entirely effective in bringing about the reduction in loans desired and which might normally have been expected during the early months of the year. Liquidation during these months is entirely natural and healthy and is necessary in order that the banks may be prepared to meet the demands made upon them during the crop making and harvesting seasons, but there has been no such liquidation and on the contrary commercial loans have steadily increased. Thus it appears that the public has anticipated demands JUNE, 1920. for banking credit which are usually made later on in the year. The average reserves of the Federal Reserve Banks are now a little over 42J per cent, as against 45 per cent at the beginning of the year and about 51 per cent 12 months ago. The Federal Advisory Council, which is composed of one member from each Federal Reserve district, elected annually by the board of directors of the Federal Reserve Bank, is required by section 12 of the Federal Reserve Act to meet in Washington at least four times each year. The Council is authorized "to confer directly with the Federal Reserve Board on general business conditions; to make oral or written representations concerning matters within the jurisdiction of said board; to call for information and to make recommendations in regard to discount rates, rediscount business, note issues, reserve conditions in the various districts, the purchase and sale of gold or securities by reserve banks, open-market operations by said banks, and the general affairs of the reserve banking system." Upon receipt of a notice that the Council would hold its regular meeting on May 17, the Board extended an invitation to the three Class A directors of each Federal Reserve Bank, who are the representatives of the stockholding banks, to come to Washington at the same time for conference with the Federal Reserve Board and the Federal Advisory Council. This conference was held on the 18th instant and it was developed at the meeting that the present credit expansion is due in great part to the abnormally high prices of goods and commodities now prevailing throughout the country and to the congestion of foodstuffs and essential raw materials at, or near, points of production because of lack of transportation facilities. The Board is convinced that if the unsold portions of last year's crops can be brought to market before the new crop matures, the liquidation of credits which are now tied up in carrying the old crops will be sufficient to offset to a considerable degree the credit demands which will be made upon the banks in moving the crop of 1920. At the conference above referred to the Board's views were outlined by its governor, substantially as follows: The member banks should lean less heavily upon the Federal Reserve Banks and rely more upon their own resources, unnecessary and habitual borrowings should be discouraged and the liquidation of long standing, nonessential loans should proceed. Banks were cautioned, however, that drastic steps should be avoided and that the method adopted should be orderly, for gradual liquidation will result in permanent improvement, while too rapid deflation would be injurious and should be avoided. The Board pointed out the necessity for extending such credits as may be necessary to promote essential production, especially of foodstuffs, and, that if for any reason it should prove impracticable to increase essential production, there should be greater economy in consumption and more moderation in the use of credit. The problem of the banking system of the country is to check further expansion and to bring about a normal and healthy liquidation without curtailing essential production and without shock to industry, and, as far as possible, without disturbance of legitimate commerce and business. In order to effect this it seems necessary to distinguish between essential and nonessential loans, but the Federal Reserve Board feels it would be a most difficult task, which it should not undertake to attempt by general rule of country-wide application to make this distinction. During the war there was a broad underlying principle that essentials must be "necessary or contributory to the conduct of the war," but notwithstanding the sharp outline of this principle much difficulty was experienced by the various war boards in defining essentials and nonessentials. All the more difficult would it be for the Federal Reserve Board to make such a general definition in the present circumstances. Section 13 of the Federal Reserve Act defines the eligibility of paper for discount by the Federal Reserve JUNE, 1920. FEDERAL RESERVE BULLETIN". Banks and lays down a general rule that any paper maturing within the time prescribed and "issued or drawn for agricultural, industrial, or commercial purposes, or the proceeds of which have been used, or are to be used, for such purposes" is eligible. No expressed condition is made regarding the essential or nonessential character of the transactions giving rise to notes which may be offered for discount, and the Federal Reserve Board is not required, and properly could not be expected, generally to adopt such a criterion of eligibility. It is too much a matter of local conditions and local knowledge to justify at this time any general country-wide ruling by the Board} even if such a ruling were deemed helpful. On the other hand, there is nothing in the Federal Reserve Act which requires a Federal Reserve Bank to make any investment or to rediscount any particular paper or class of paper. The language of both sections 13 and 14 is permissive only. Section 4 of the Federal Reserve Act, however, requires the directors of a Federal Reserve Bank to administer its affairs "fairly and impartially and without discrimination in favor of or against any member bank." and subject to the provisions of law and the orders of the Federal Reserve Board to extend "to each member bank such discounts, advancements, and accommodations as may be safely and reasonably made with due regard for the claims and demands of other member banks. " Thus the directors of a Federal Reserve Bank have the power to limit the volume and character of loans which in their judgment may be safely and reasonably made to any member bank. The recent amendment to paragraph (d) of section 14 distinctly authorizes each Federal Reserve Bank on its own account, without reference to action taken by any other Federal Reserve Bank, to establish a normal discount or credit line for each member bank, and permits the imposition of graduated rates on discount lines in excess of the normal line. This amendment, however, does not repeal or modify sections 4 and 13, and a Federal Reserve Bank is still free to decline to discount any paper which in its judgment does not constitute a desirable investment for it or which in its opinion would not constitute a safe and reasonable investment within the meaning of section 4. It is the view of the Board, however, that while^Federal Reserve Banks may properly undertake in their transactions with member banks to discriminate between essential and nonessential loans, nevertheless that discrimination might much better be made at the source by the member banks themselves. The individual banker comes in direct contact with his customers; he is better qualified than anyone else to advise the customer, because of his familiarity, not only with the customer's business but with the general business conditions and needs in his immediate locality. In making loans he is bound by no general rule of law as to the character of the purpose for which a loan is being asked. He is entirely free to exercise discretion, and can make one loan and decline another as his judgment may dictate. He can estimate with a fair degree of accuracy the legitimate demands for credit which are liable to be made upon him, as well as the fluctuations in the volume of his deposits. He knows what industries sustain his community, and is thus qualified to pass upon the essential or nonessential character of loans offered him. He knows, or should know, what rediscount line he may reasonably expect of his Federal Reserve Bank, and he ought not to regard this line as a permanent addition to his capital. With knowledge of the limitations or penalties put upon his borrowings from the Federal Reserve Banks the banker may be depended upon to use a more discriminating judgment in granting credit accommodations to his customers, and that judgment he must exercise if the present situation is to be remedied fundamentally. It is true that under existing conditions the volume of .credit required in any transaction is much greater than was the case in prewar times; but it is also true that the 583 resources of the member and nonmember banks would be ample to take care of the essential business of the country and to a large extent of nonessentials as well if there were a freer flow of goods and credit. If "frozen loans" were liquefied, and if commodities which are held back either for speculative purposes or because of lack of transportation facilities should go to the markets; and if large stocks of merchandise should be reduced, the resultant release of credit would have a most beneficial effect upon the general situation. In the meantime everything must be done to expedite the release of these credits and to restrict nonessential credits in future. While the problem of credit regulation and control is national and even international in its scope, yet in the last analysis it is merely an aggregation of individual problems, and the proper working out of the situation must depend upon the public and upon the banks which deal with the public. The public must be made to realize the necessity of economy in expenditures and in consequent demands for banking credit. The banks themselves are best able to impress the importance of this policy upon the public. For the further information of the Senate the Board quotes from the report of the Federal Advisory Council made to it on May 18, signed by James B. Forgan, president: "The Council has given consideration to the matters included in your communication of April 17 and begs to reply thereto in the following manner, following the order set out by you. "(a) 'Causes of continued expansion of credits and of Federal note issues.' "There are many contributing causes of which the following may be regarded as paramount: "(1) We recognize, of course, that the first cause is the Great War. "(2) Great extravagance, national, municipal and individual. "(3) Inefficiency and indifference of labor resulting in lessening production. "(4) A shortage of transportation facilities, thus preventing the normal movement of commodities. "(5) The vicious circle of increasing wages and prices. "(b) 'How can the reserve position of the Federal Reserve Banks be materially strengthened before the seasonal demand sets in next fall without undue disturbance of the processes of production and distribution?' "By urging upon member banks through the Federal Reserve Banks the wisdom of showing borrowers the necessity of the curtailment of general credits, and especially for nonessential uses, as well as continuing to discourage loans for capital and speculative purposes; by checking excessive borrowings through the application of higher rates. "(c) 'If steps can not be taken at this time leading to a more normal proportion between the volume of credits and the volume of goods, when can they be taken?^ "In our opinion steps should be taken now, as outlined in answer to the last question. "(d) 'What is the effect upon the general situation of the increased Treasury borrowings and what should be the policy of the Federal Reserve Banks in establishing rates of discount on paper secured by certificates of indebtedness? ' " I t is obvious that the borrowings of the Treasury have the same effect upon the general credit situation as those of other borrowers. The council would suggest the wisdom of congressional relief from the burden of Government financing by a policy of rigid economy; the provision of the tax laws for the sake of a more equitable distribution of the burden without reducing the revenue; the enactment of the budget system, the budget to include provision for the gradual payment of the short-time obligations of the Treasury. These would of necessity preclude unwise appropriations, such as the proposed soldiers' bonus. '' In view oi the large volume of Treasury certificates of indebtedness carried by member banks at the instance of 584 FEDERAL RESERVE BULLETIN. JUNE, 1920. the Treasury Department, we believe that, rates estabThe methods which are followed in the lished by the Federal Reserve Banks on paper secured extension of accommodation to banks differ by them should not be materially greater than the rates in important particulars from those followed borne by the certificates. " The Board feels assured that the banku of the country in extending accommodation to mercantile now realize the necessity of more conservatism in ex- houses. With the latter, borrowing is tending credits and of a reasonable reduction in the assumed to be only a natural and recurring volume of credits now outstanding. The Board will not hesitate, so far as it may be necessary, to bring to bear all operation. The general operations of the its statutory powers in' regulating the volume of credit, enterprise are considered, and on this basis but wishes to point out lhat the more vital problems the line of credit is extended. Borrowing relating to the movement of the 1920 crop are physical by a bank, however, is in general not so rather than financial. Instead of viewing its transThis was the unanimous view of those present at the regarded. conference on the 18th instant, at which the following actions as a whole and on this basis deterresolution was adopted: mining the line of accommodation, it is The whole country is suffering from inflation, of prices with the conse- desired rather to go back of the general quent inflation of credit. From reports made by the members of this conference, representing every section of the country, it is obvious that operations and to consider the specific transgreat sums are tied up in products which if marketed would relieve necessity, tend to reduce the price level, and relieve the strain on our actions which occur, to the extent at least credit system. of having the paper representing this transThis congestion of freight is found in practically all of the large railroad centers and shipping ports. It arises chiefly from inadequate transpor- action as collateral, and analyzing these bills tation facilities available at this time and is seriously crippling business. receivable to some extent. In consequence We are informed that the per ton mile of freight increased in three years— 1916, 1917, and 1918—47 per cent, while the freight cars in service during no line of credit is in general fixed, but each the same period increased 1.9 per cent. A striking necessity exists which can only be relieved through the individual case is considered on its merits, upbuilding of the credit of the railroads. This must come through adequate and prompt increase in freight rates. Any delay means the specific amounts being granted as needed. paying of greater cost directly and indirectly and places a burden on The line of credit then is employed only in a the credit system which in the approaching time for seasonal expansion The position may cause abnormal strain. Even under the load of war inflation, somewhat restricted sense. high price level, and extravagances the bank reserves would probably which is assumed with respect to bank borbe sufficient if quick transportation could be assured during the time of the greatest strain. rowing is well stated uby one institution in Therefore be it resolved, That this conference urge as the most important remedies that the Interstate Commerce Commission and the United the following words: W e avoid as far as States Shipping Board give increased rates and adequate facilities such possible suggesting lines or limits as to the immediate effect as may be warranted under their authority, and that a committee of five, representing the various sections of the country, extent we would serve the borrower, simply be appointed by the chairman to present this resolution to the Interstate Commerce Commission and the United States Shipping Board indicating our disposition to fully meet their with such verbal presentation as may seem appropriate to the committee. reasonable requirements in liberal proportion Much will depend upon the restoration of the normal to balances maintained and with due regard efficiency of railroad and steamship lines. If adequate to amount of their capital investment and transportation facilities can be provided, the Board sees no occasion for apprehension in connection with the borrowings elsewhere, but quite frequently the borrowers suggest lines themselves which movement of crops now being grown. Respectfully, we agree to if circumstances warrant, con- ditioned on everything continuing satisfactorily/' One institution, however, regularly fixes lines for its bank borrowers as well as for its mercantile accounts, while another quite frequently fixes lines in the case of Methods Followed by City Banks in Granting banks, especially southern, western, and southAccommodation to Correspondents. western banks which are regularly in need of funds each year. Herewith is presented a first installment of The amount which is loaned is also often the results of a study made by the Division of limited by law. In the case of national banks, Analysis and Research of the Federal Reserve section 5202 of the Revised Statutes limits the Board of the methods pursued by city banks in indebtedness for loans or rediscounts, other granting accommodation to their correspond- than with the Federal Reserve Bank, to the ents. The particular object of this inquiry amount of unimpaired capital, and in many is to ascertain the extent to which relatively States there are provisions covering this matter. standardized methods are in vogue and how A leading institution states that when a State the practice of banks has developed since bank appears to be borrowing or rediscounting the adoption of the Federal Reserve System. to an amount in excess of its capital and surplus The following installment of this study it is generally made the subject of special conpresents the results of inquiries made with sideration and inquiry. Another institution the assistance of leading New York City also states that it endeavors to limit accommoinstitutions. Similar inquiries into the situa- dation to the capital investment, while in the tion in the South and West are now in prog- case of a third bank the accommodation granted ress, and the further results of the investiga- is always less than the capital. With another tion will be published in a later issue. bank, the line granted is limited to the capital, W. P. G. HARDING, Governor. THE PRESIDENT OF THE SENATE. JUNE., 1920. FEDERAL RESERVE BULLETIN. 585 from what banks transfers come for credit to the subject's account. In addition communication may be had with the correspondents of the inquirer which are located in the neighborhood of the subject. Thus communication may be had with another bank in the same town or banks in near-by towns. As it is a matter of some delicacy to make inquiry of a bank located in the same town as the subject, in view of the competitive prejudices which might exist locally, and in order not to divulge the source of such inquiries, communication in such cases is usually had with some city correspondent of the inquirer who has a correspondent in the town in question. It is generI. SOURCES OF INFORMATION. ally considered that to New York City banks data from other banks in the borrower's general Contents of thefile.—Creditfilesin general are locality is a great help, as such banks are close to classified into certain sections, corresponding to the subject and to the people back of it, supplythe source of data, although one of the institu- ing the personal element which may be lacking tions from which data were obtained, which has in New York as compared with the lesser banka relatively small number of borrowing ac- ing centers. In addition, if the subject bank counts, and which relies largely upon personal maintains any other account or accounts in knowledge of and acquaintance with these insti- New York City, inquiry is made by personal tutions, files chronologically all its material on visit of a representative of the credit departthe subject bank, consisting of statements and ment who exchanges views and data. One correspondence. The data in general will in- institution, where it has a personal acquaintclude: (1) Statements of the institution, (2) ance with a leading merchant in the vicinity of abstract of direct correspondence with it and the subject, also obtains his opinion. carbons of replies to it, (3) correspondence In these letters of inquiry information is with other institutions, (4) agency reports usually requested as to (1) the antecedents of the where these are obtained, and (5) reports of dominant factors (especially in the case of a representatives, in some banks only where comparatively new institution) and the general giving special information, in other banks the standing of the subject bank in the coinlatest reports, previous reports being placed in muni ty, prospects, etc., (2) the character, abilthe new business file in both these cases. ity, and conservatism of its management, as well Newspaper clippings are also kept in some as in some cases the financial responsibility of cases, and memoranda drawn up on the bank its officers and directors, and (3) the relations will be included. Certain institutions also had with the subject bank, one institution keep the overdraft record, listing separately stating that it requests information as to the each item and showing whether it occurred extent to which the bank borrows, the method against uncollected items or the balance record, of borrowing, and the continuity with which showing average daily balances and borrowings it borrows. A voluntary expression of the in this file. Unfavorable data may be specially inquirer's opinion may be given, together marked, or listed on a specially colored sheet. with information on the subject's transactions The arrangement of the individual file of course with the inquirer. Occasionally inquiry may differs and the degree of completeness varies be made as to the subject's performance in considerably. The complexity will naturally the matter of balances. The complaint has depend in part upon the number of accounts, been made by some bankers that letters from also upon the extent to which the individual banks in the majority of cases are very general, officers in charge prefer to rely upon their per- the opinions on the first two points being sonal knowledge, or desire a more or less merely in general terms, and the statement, elaborate system of recording data to supple- for example, added that "we consider them ment these impressions. good for any reasonable amount." One inExperience of other institutions.—The most stitution, in fact, regards the experience of helpful data for guidance from outside sources, other New York City institutions as distinctly states a leading New York institution, "are more helpful than that of out-of-town banks. obtained by writing to all other correspondents Communication is in general had with the of the subject bank." This institution pre- same banks from year to year on a given pares its list from the various issues of the subject, although some institutions vary the Bankers' Directories, as well as observing list somewhat, and thus the statement may be but due regard is given a large surplus and profits item. The amount of accommodation, of course, varies with the type of paper offered, and would not be on the same basis for an institution offering paper ineligible for rediscount as for one offering eligible paper. Several institutions state that with respect to rediscounts with the Federal Reserve Bank, they go on the presumption that the paper rediscount ed is probably of such good quality that the contingent liability of the bank indorsing the same is negligible, and hence disregard this item when considering the accommodation to be extended. 586 FEDERAL RESERVE BULLETIN. received that "we have found nothing to change the opinions expressed in our letter of — ," naming a date several years previous. In case additional connections have been established, communication will be had with them, or, in case an account is closed, inquiry will be made of the correspondent with whom the account of the subject has been closed as to the reasons therefor. A New York City institution which has a relatively small number of accounts and whose correspondents have been with them for years writes only in case of poor behavior, such as slowness in payments or offering of paper close to directors, and then generally communicates with banks in the neighborhood of the borrower, or a New York bank if the subject is borrowing in New York. In this case inquiry is made only on some specific point, such as whether the institution is loaning the subject. One institution, in addition to exchanging experiences with other institutions which inquire of it concerning the subject bank, also has a somewhat different procedure for obtaining data as to State bank borrowers, upon which it places especial value. Up to several years ago an officer of this institution made it a regular practice to attend bankers' conventions in the Southern States, at which he obtained data as to the bank and made commitments as to the line to be extended. These data were as follows: (1) From representatives of the bank, information as to character of business, giving kind of collateral available, names and approximate net worth and character of directors, and names of correspondents at other points. (2) From other correspondents, comparison of notes as to lines, rates, collateral, margin, etc. (3) From State superintendent and State bank examiner, obtaining expression of their opinion as to the moral risk, efficiency of management, etc. The second and third sources afford a ready check uj)on the information obtained from the bank itself. Frequency of revision of the file.—Annual revision of the files is the general practice, although more frequent inquiry may be made on some borrowers, and especially respecting status of institutions located in sections subject to radical changes, such as drought, flood, etc. One institution states that it has been prevented from making its regular revisions in all cases during the war period owing to pressure of other work. Another institution revises its files every six months, unless banks JUNE, 1920. borrow only once a year, when annual revision is made. A leading institution states that it endeavors to make the annual revision during the early months of the year, with a view to obtaining information in respect to total borrowings of the subject bank during the past season and promptness in clearing up, or otherwise, and revises files of nonborrowing institutions less frequently. The institution mentioned above as naving a relatively small number of accounts makes no periodic revision of its files. Statements of the subject bank.—These are regularly received, the bank in general being educated to send them regularly. In general the condensed form as published is regarded as sufficient. Abstracts are made in the credit department to a comparative statement form in five of the institutions, one of the others is developing such a form and two have no such form, one of the last being a leading institution for this class of business. One of these, however, keeps an annual record of capital, surplus and profits, and deposits on the card showing monthly balances and loans, both direct and indirect. The comparative statement form in certain cases is arranged horizontally, in others vertically. The number of items differs, as well as their order, and certain institutions include different items. In view of this diversity, the clearest method of presentation of current practice will be to reproduce the items for certain institutions. I t will be observed that in the fifth case attempt has specifically been made to devise a form which would be suited to foreign as well as to domestic practice. An institution which has a large number of accounts states that statements received from nonborrowing accounts are simply kept on file and not transferred to the comparison form. 1 Representatives visits and agency reports.—At regular intervals the majority of correspondents are visited by district and traveling representatives, who also attend conventions of various State bankers' associations. Representatives, however, in general are primarily attached to the new business department, and report only such information as they happen to hear from time to time. In certain cases they also make special inquiries as directed. Valuable information as to the management of the bank and the men behind it is obtained in this way, states one banker. Representatives attending these conventions are not authorized to make commitments; but in case officers attend, such commitments are frequently made. One institution, however, states that it has no staff of representatives. 1 2 Cash on hand and in banks. Loans and bills purchased. Overdrafts. Investments. United States bonds. United States bonds to secure circulation. Stock of Federal Reserve Bank. Redemption fund; United States Treasurer. Reserve with Federal Reserve Bank. Banking house. Furniture and fixtures. Other real estate. Customers liability on accepAccrued interest. Other resources. Total resources. Loans and discounts. Commercial paper securing circulation. Unsecured overdrafts. Stock in Federal Reserve Bank. United States bonds to secure circulation. United States bonds to secure postal savings. Securities securing circulation. Securities unpledged. Real estate and buildings. Cash and due from banks. 3 Loans and discounts. Overdrafts. Securities. Real estate. Total resources. Total resources. Capital. Bills payable. Capital stock. Surplus. Bills discounted. Surplus and undivided Undivided profits. Circulation. profits. Reserves. Demand deposits. Bills payable and redisAcceptances. Time deposits. counts. Rediscounts. Postal savings. Deposits. Bills payable. Total deposits. Deposits: Surplus and undivided United States deposits. profits. Banks and bankers. Capital stock. Miscellaneous. Total liabilities. Total liabilities. Total liabilities. Agency reports are frequently kept. One bank obtains them when the account is opened and, in the case of accounts which borrow, obtains them later at reasonably frequent intervals, while another obtains at least one at each revision of the files. The principal value of these reports, it is generally held, is to show the net worth of officers and directors of the subject bank and their possible business affiliations. They thus afford certain "leads" indicating where further information may be obtained. Occasionally reports of the officers' and directors' firms may be obtained, but this is not the general practice. Some banks do not keep agency reports. II. RELATION OF AMOUNT OF ACCOMMODATION TO BALANCE MAINTAINED " CLEAN U P " REQUIREMENTS. Balances.—While certain institutions have no formal rule as to the relation which the balance maintained shall bear to the line of accommodation, other institutions fix a certain percentage, which is generally adhered to, although exceptions are made at times. This is usually fixed at 20 per cent, or in some cases at 25 per cent, of the accommodation extended, several institutions reporting that they calculate the annual average balance in applying the test. In several cases a minimum dollar amount is also fixed for the balance, instances of $2,500 and $3,000 being reported, and the minimum capital and surplus of the borrowing banks in the former case is fixed at $25,000. Two 587 FEDERAL RESERVE BULLETIN. JUNE, 1920. 4 Capital. Surplus and profits. Deposits. Borrowed money. Circulation. 5 Cash and on call. Investments. Loans and advances. Bills discounted. Acceptances. Branches, correspondents. Bank premises. Sundry and contra items. Total liabilities. Total. Cash assets. Capital. Loans. Surplus reserves. Stocks and bonds. Profit balance. Banking house, furniture Deposits, current accounts. and fixtures. Acceptances, drafts. Other real estate. Branches, correspondents. Expense reserve. Sundry and contra items. Total resources. Total. banks report exceptions to the nominal 20 per cent rule (for balances at any one time) for a first-rate correspondent which is not a frequent or chronic borrower, while another has no bank whose balance goes down to 20 per cent. The balance may be stressed particularly in case of renewals, or application for a larger line than appears warranted, the matter in such cases being brought to the correspondent's attention. A few correspondents are reported by some banks who are believed to be perfectly good, but do not keep more than, say, a 10 per cent balance, and in such cases the meager balances may be offset by higher discount rates, or the elimination of interest on balance when borrowing. One bank states that such cases are confined to banks in large cities, but that there is no sectional difference apparent, the policy being dependent rather upon liberality of management. Two other banks, however, state that the smaller balances occur rather in the case of the smaller banks. Balances, in addition to their relation to the profitableness of the account, may afford also an indication of the character of the management. Thus small balances taken in conjunction with frequent overdrafts may mean that a bank is working too closely on its resources. Overdrafts, however, frequently are permitted only against uncollected items. The balances maintained are frequently an indication of an easy position or otherwise. Occasionally a country bank improperly endeavors to maintain two or more New York accounts with 588 FEDERAL. RESERVE BULLETIN. the hope of procuring through each a larger line of accommodation than balances would warrant, and this necessitates watching closely the balance and borrowing in New York where other accounts are maintained in New York. Character of borrowing.—Borrowing in gen- eral is of two classes: (1) For seasonal needs, and (2) for extraordinary needs and special purposes. Certain New York institutions insist that the borrower be cleaned up for a reasonable part of each year, and a more frequent clean-up is encouraged. Admonition, direct suggestion, and request are employed; occasionally advance in rates. The seasonal clean-up depends, of course, upon the nature of the crops and the section of the country, as well as upon special conditions, such as the transportation situation, which may arise, and which may render renewals necessary. It is generally agreed that the South during the last few years, in place of its former needs which led to borrowing, has had a surplus instead, and is now loaning elsewhere to some extent. Florida banks frequently borrow during the citrus-fruit season in the late autumn and during the winter. Loans to banks in the cotton States are frequently made, not only in the spring to aid in making the crop, but also during the autumn and winter, in case customers are holding cotton, and this is especially true of banks located at concentration points. Similarly, banks in the grain States as well as elsewhere make application not only for the preparation of crops but also for moving them after harvest. Maturities on loans for crop-moving purposes are in general the periods at which funds from the crops ordinarily will come in. One leading New York institution states that in the case of loans made unusually early in the year, such as January, February, and March, and when it judges that the borrower will be unlikely to retire the loan until the autumn, it occasionally asks for a note for, say, four months, with the privilege of renewal until autumn, if everything continues satisfactory. Short renewals are rarely objected to where apparently reasonable by virtue of crop conditions. Special needs of a temporary character may be represented by unexpected or large withdrawals of deposits, or in the past in connection with Government finance. Banks in out-oftown cities usually require funds for shorter periods than banks employing them in connection with crops, while city banks, of course, frequently borrow simply because of some unexpected temporary change of position. While the banks from which data were obtained in general loan for both needs, and some institutions more largely for seasonal purposes, one institution loans more largely for emergencies JUNE, 1920. than for seasonal needs, its borrowing accounts making other arrangements with respect to their seasonal requirements. Continuous borrowing is permitted by one institution in a very small number of cases for. banks located in large cities which lack sufficient banking capital to meet the continuous borrowing demands, and in such cases sufficiently well rated paper at profitable rates is given. Another institution states that it has not insisted upon a clean-up from banks borrowing on Government bonds. III. FORMS OF ACCOMMODATION. Accommodation may be obtained in a variety of forms. Paper may be rediscounted, or a loan be made, which mav be either unsecured, or have as collateial bills receivable or securities. Loans may be made on demand, or for a fixed maturity. Among special forms is borrowing by means of a certificate of deposit, or by sale of securities with a repurchase agreement. Security of the loan.—The larger proportion of accommodation extended by New York institutions is in the form of loans rather than rediscounts. There are practically no unsecured loans. A leading institution advises that in some of the extremely few cases where accommodation is extended to banks without security, the note is indorsed individually by a strong board of directors. Collateral is desired for the assurance of safety which it gives. Certain institutions prefer bills receivable as collateral; others, however, prefer securities. In recent years, of course, considerable loans have been made against Liberty bonds, but two banks report a lessened use of them for some time. The proportions of the loans of the individual institution which consist of either class of collateral, of course, vary from time to time, and differ from bank to bank according to the general character of business of the lender, but the loans of certain institutions are largely against securities, while for other institutions the large majority consist rather of bills receivable, loans against stocks and bonds, other than Liberty bonds, being correspondingly small in amount. One institution reports a difference between loans for fixed periods and demand loans, securities providing 10 per cent and 50 per cent, respectively, of the collateral. One banker states that as a result of the small bond purchases by banks due in part to the decline in bond values, the amount of the same employed as collateral in negotiating loans is likewise small. Some institutions report loans against securities as being made largely against those purchased through the institution and held in New York JUNE, 1920. FEDERAL RESERVE BULLETIN. 589 on special deposit, while for others, however, borrower has with it, while in the case of the the reverse is true. rediscount a special agreement is required. The margins against the various classes of Rediscounts may be employed to care for securities differ. Thus three institutions report "excess" loans which the borrower itself can that on Government bonds they require a 5 not handle, in which case arrangements may per cent margin, noted by one institution as be made for the lender to at once rediscount being figured on current market values, al- the paper, without recourse on the part of the though it loans at par in a few instances, not- borrowing bank, in many cases with separate1 withstanding that present market values are guaranty from officers or directors of the bank. lowrer. Three institutions, however, require a Certain institutions apparently believe that 10 per cent margin on such collateral, and one the principal accommodation on the basis of of these requires no margin on certificates of bills receivable should be obtained from the indebtedness. Customary margins on other Federal Reserve Banks. One institution states types of security are in general the same as on that what.it terms "hodge-podge" paper is put bills receivable, namely, 20 or 25 per cent, up with it as collateral at times to obtain addialthough one institution requires only 15-20 per tional accommodation after having gone to the cent, with 10 per cent on municipal bonds Federal Reserve Banks with other paper, (noted also by another institution), while although it rediscounts eligible paper for coranother usually requires only 10 per cent. respondents; while another states that it often Several institutions accept also a lesser amount happens that member banks in cities rediscount of collateral offered in the form of prime active their eligible paper at the Federal Reserve listed securities by good borrowers, although Bank, leaving the less eligible receivables to whenever they are in position to express any be handled by their New York correspondent. preference they ordinarily suggest that the full One institution which does a considerable pormargins be given. The question of margins is tion of stock exchange financing as distinct of course subject to the limitation of State law from pure commercial banking, and which existing in the case of State banks, restrictions rediscounts infrequently for correspondents, existing in some States. scrutinizes very carefully requests for accomUse of bills receivable.—A bank may borrowmodation by member banks against bills receivon its bills receivable in one of two ways, able, while another institution, similarly situeither by redisounting or by employing them ated, in general makes no such loans to member as collateral for a loan. A leading New York banks of the Federal Reserve System, and would City institution states that it is practically require an explanation were such an applicathe universal custom throughout the country, tion made. outside of transactions with Federal Reserve While the customary margins against bills Banks, for borrowing banks to give their own receivable in the majority of cases are 20 to note with collateral and margins, unless they 25 per cent, there is considerable variation are in a position to offer well-rated commercial shown. In the case of certain institutions, paper, in which event they frequently expect against miscellaneous receivables it may be as that offerings of the latter character, including high as 100 per cent, and in case there is a live-stock paper providing its own margin, little question as to the standing of the borwill be handled in the form of rediscounts. rowing bank, in addition to the borrowing Another leading institution states, however, bank the indorsements of directors may be that " since the advent of the Federal Reserve demanded. In several institutions the upper Banks an increasingly large number of cor- limit is given as roughly 50 per cent. In other respondent banks are arranging their borrow- cases the margin at times may be considerably ings in that way," whereas "formerly almost less. Several institutions require no margins all loans were in the form of bills payable with for some first-rate correspondents, or 5 per a margin of collateral," but practically all the cent, 10 per cent, or 20 per cent in other cases. other institutions report no appreciable change One institution gives tne usual margin as 10 in the form of obtaining accommodation during per cent, running up to 25 per cent in certain this period. A number of the larger institu- cases, while another places these two figures as tions have always rediscounted only occasion- its usual limits. Another institution states ally, in reasonable amounts, for instance, for that frequently borrowers send in collateral borrowers of highest standing, and prefer col- which only gives a 10 per cent margin, which, lateral loans. It may be noted that, aside if everything else is satisfactory, is accepted, from the security afforded, there is an advan- but in many cases attention is called to the tage in the case of the collateral loan as against 20-25 per cent margin rule. A leading instithe rediscount, in the event of failure of the 1 Another method of handling such loans stated by one banker is by borrower. With the former the lender has loan upon the direct obligation of the officers of the bank secured by the the legal right to offset the balance which the bills receivable indorsed without recourse by the bank mentioned below. 590 FEDERAL RESERVE BULLETIN. JUNE, 1920. tution states that " occasionally when a bor- todian. It is stated that " through longrowing bank gives us as collateral well-known established custom some banks, particularly in commercial paper names that we would be Georgia and some of the other cotton States, willing, if desired, to handle on a rediscount request the return of their collateral along about basis, we are not exacting about the matter of the first of each September, in order to facilimargin, taking without complaint whatever tate their making prompt collections/' and amount of such collateral may be offered even that in cases where entire confidence is felt in though it provides no margin, or only a small the management of such banks, their wishes margin/ 7 are usually met, a trust receipt being taken, Maturity of loans.—Practice differs somewhat but no renewal is permitted without requiring with respect to the maturity of loans. Some explanation and fresh trust receipts, as well as institutions largely have demand loans, while usually fresh collateral. Another institution others strongly prefer loans for fixed periods. permits holding by other institutions where the The former in some cases, although this is not loan is to run for a few days only, requiring universally true, are institutions having a otherwise that the collateral be forwarded to large proportion of their loans against securities New York. One bank states that it holds the as collateral, but one of these has made loans collateral itself until a few days before its for fixed periods (up to 90 days) where Liberty maturity, although another bank forwards each bonds are the collateral, in order to render them month the maturities of the following month eligible at the Federal Reserve Banks. De- for collection or substitution. Substitution in mand loans are generally of shorter maturities, general is permitted without requiring reducand certain institutions state that with rare tion of the loan, or inquiry whether the reexceptions they do not rim beyond 90 days, ceivables returned on account of approaching while for another institution thev average one maturity have been paid. One institution to two months. It is generally desired to states that with its loans substitutions rarely have these loans upon a call basis, and if they occur, as in practically all cases the receivables appear to be a fixture, to endeavor to put them given as collateral bear a later maturity. upon a fixed maturity basis instead. One Special forms of accommodation.—Borrowing institution instances the convenience of demand against certificates of deposit is but rarely loans, but other institutions permit antici- requested by borrowers. Some institutions patory payment and refund the interest for report that they at times grant accommodafor the unexpired period. A favorite maturity tion in this form. Bills receivable are required is 60 to 90 days, and the upper limit in most as collateral in such cases by one institution. cases is six months, except in the case of a Borrowing in this form is reported to be freleading institution for small southern institu- quent among banks on the Pacific coast and in tions, while another bank, however, reports its the Northwest. The use of this and similar loans as running 30-60-90 days. The adapta- methods of borrowing is due to the prejudice tion of the maturity of crop loans to the period previously existing in some localities against when crops come in was noted above. Another banks showing bills payable or rediscounts in leading institution endeavors to have small their published statements, which is disappearbanks give notes of fixed maturity, while large ing. There is, however, still stated to be some banks in important cities frequently borrow tendency for banks in Minnesota and the temporarily on demand for temporary use. Dakotas, and to a small extent in Kansas, On loans of fixed maturity this institution Iowa, and Texas, toward borrowing in forms ordinarily deducts interest in advance, whereas that would not appear in reports of condition, on demand loans the interest is collected at the such as against certificates of deposit or perend of each month. sonal notes of officers. One bank states that Holding of collateral.—While the collateral is " since about 1914 marked progress has been generally held by the lending institution, in made in the direction of banks borrowing in infrequent cases arrangements may be made proper form instead of irregular methods." for holding, under trust receipt, by another In rare cases some of the officers of a bank institution, in general in the locality of the may be sufficiently strong financially to give borrower. This occurs more frequently in the their personal note, which would represent case of banks located at a considerable distance, larger net worth than a secured note of the such as on the Pacific coast, in or$er to avoid bank, or in a few instances notes signed by the expense, inconvenience, and risk attendant officers or directors of the bank may be given, upon shipment of the collateral. Another collateraled by a like amount of bills receivable reason given is to effect substitution. One in- which they personally purchased from the stitution in an extremely few cases returns the bank under proper bill of sale. In line with collateral, after listing it, upon trust receipt of the quotation given above, another institution the borrower or of a properly constituted cus- notes that directors7 indorsements are less FEDERAL RESERVE BULLETIN. JUNE, 1920. 591 frequent now than formerly, being employed for paper indorsed by the borrower without recourse, or in the case of renewals by small institutions under unfavorable conditions, such as, for example, in the case of Georgia banks in 1914. Another institution, in addition to requiring the usual collateral, may occasionally require directors' indorsements where there is a little question as to the standing of the borrowing bank. Other institutions, however, state that they would refuse accommodation if such a procedure were felt necessary. There is also to some extent purchase of securities or bills receivable under repurchase agreement. Such transactions are almost entirely without margin. One institution reports occasional purchase of prime listed active securities at current market value, usually from institutions in large cities, under agreement to repurchase at the same price on demand or within a reasonably short period. This may be done at times for special purposes, such as in connection with taxation. occasional cases, where it appears desirable, the receivables may also be investigated. One institution states that the extent of the analysis made by it depends entirely upon the strength of the borrowing bank, little investigation being made where the bank is strong. Varying opinions were expressed as to the eligibility of the bills receivable given as collateral for rediscount with the Federal Reserve Banks, certain institutions believing that the majority was eligible, while others held a contrary view. One institution states that in the case of country banks the paper is frequently ineligible, due to maturity or otherwise, but that the rated paper received occasionally from city banks who borrow on demand or rediscount would be eligible. The matter, of course, depends in large part upon the extent to which borrowing institutions employ the Federal Reserve Bank when borrowing on receivables, which was mentioned above. IV. PARTS OF THE ANALYSIS. Consideration of data regarding the bank— the statement of condition.—Analysis of the Analysis lateral.—The preference is expressed by several institutions for small well-assorted notes of strictly seasonal or active character rather than notes of relatively large denominations and notes of makers who would be likely to require renewals. A presumption in favor of the legitimacy of the paper, observes one banker, is established by the recurrence of the same names each year at the same season of the year, as well as by nonsubstitution of the same names. The offerings are listed to show the proportion consisting of rated names, and also, in the case of a leading institution, " whether any paper of the same names is already held?' The dates and maturity of the receivables will also be examined to show whether any are of " ancient or long-time character;" and denominations will be considered, as well as whether any of the notes run in the direction of officers or directors of the borrower. While statements of makers in certain cases are reported as rarely received, a form is in general attached in the case of paper of agricultural makers to be filled out by the borrowing bank, showing the maker's character and general standing in his community, net worth, etc. One bank states that it tries to educate banks to send statements in advance, but that where this is not done the correspondent is wired to send statements, and the loan may then be made prior to receipt of the statements. Paper may be taken subject to check, and may be rejected on the basis of the statement. In statement in general involves consideration of bills receivable offered as col- of the absolute size of various items as com- pared with other items. In no case were ratios formally calculated, extra large items merely being considered. One bank places little reliance upon statement analysis, as it holds that "a good statement may be rotten at the core." The items to which attention is paid, and the "subjective" ratios, as they may be termed, which are considered, are of course fairly standardized. Among these wiU be the ratio of deposits to capital investment, as indicating whether deposits are sufficiently large to do a profitable business; and the growth of the institution, as evidenced in particular by growth of deposits and surplus and undivided profits, or dividend record, giving attention to opportunities arising to ascertain whether the bank is properly and promptly charging off slow assets or depreciations. On the other hand, attention must be paid to see that the volume of business done is not too great, and here, as a test of "overloaning," the ratio of loans to deposits may be considered, as well as the ratio of deposits to capital investment. The second group of items deal with the character of assets, in particular the proportion of fixed assets, such as bank building, real estate, furniture and fixtures, or such items as "other real estate," as related to the capital investment; and assets of a possibly slow character, such as stocks and bonds (other than Government securities), as well as the reserve maintained. Third, the borrowing of the institution will also be observed, and frequently 592 information will be possessed as to the total lines granted by other correspondents, in order to consider the amount of total borrowings. The lines expected from New York correspondents are usually larger than the amounts borrowed from correspondents of lesser loaning ability. The overdrafts shown may, of course, be significant. Handling report of tha Department of Commerce on the economic position of Argentina during the war, shows the extent and distribution of foreign investments in Argentina: Capital invested (in thousands). Type of investment. of the account by the borrower.— This is naturally regarded as affording one of the most valuable indications of the character of management and business methods of the borrowing institution. Certain matters are generally pointed to in this connection. The general significance of balances was indicated above. A balance which continually fluctuates in an erratic manner might also indicate poor management. The significance of the overdraft record was likewise indicated above. One institution states that when the account becomes unsatisfactory by reason of overdrafts it makes inquiry in the town and immediate vicinity where the bank is located to ascertain the general local situation, as well as any special reasons which exist for the condition of the account. "The matter of prompt reconcilement of monthly statements of accounts is also carefully watched/' states a leading institution, "as lack of diligence in these respects is frequently significant," and likewise with the promptness or otherwise with which a bank makes substitutions for maturing receivables. BANKING AND FINANCIAL CONDITIONS IN ARGENTINA. Argentina is a great grain and meat producing country with a comparatively sparse population and a large excess of agricultural products available for export. It supplies large amounts of wheat, corn, and flaxseed, as well as of chilled and frozen meat and of hides, to the world markets and receives in return manufactured products from abroad, principally from England, Germany, and the United States. The balance of trade runs heavily in favor of Argentina on the basis of foreign-trade figures alone, but the older countries, especially England, France, and German}^, have large investments in Argentina, and interest payments on these investments operate as an offset against the excess of merchandise exports. England's investments in Argentina are estimated at between 2 and 2\ billion dollars, the larger part of which is in railroads; France has about 400 millions invested in Argentina, and Germany about 250 millions. The following table, taken from a JUNE, 1920. FEDERAL RESERVE BULLETIN. Argentine loans and issues Railways Banks Ports Tramways Refrigeration plants Gas, electricity, and drainage companies... Land and rural property companies Mortgages Insurance Industrial establishments Telephone and radio-telegraphic companies Commerce Total Gold pesos. United States currency. 657,303 1,344,326 51,981 22,164 109,496 40,916 78,373 79,682 500,016 3,886 507,760 21,340 465,169 $634,298 1,297,275 50,075 21,388 105,664 39,484 75,630 76,893 482,515 3,750 489,988 20,593 448,888 3,882,412 3,746,441 Of the 3,746 millions of foreign capital invested in Argentina, 1,297 millions were in railroads, 634 millions in Government securities, 490 millions in industrial establishments, 483 millions in mortgages, and 449 millions in commercial enterprises. American capital is prominently represented, in the 39 millions of foreign capital invested in refrigeration plants. EMERGENCY LAWS OF 1914. When the war broke out in the middle of 1914 Argentina was emerging from an industrial and economic crisis, and the sudden discontinuance of European markets and European supplies, the demoralization of foreign exchange, together with a great scarcity of available shipping facilities, produced an alarming situation. The Government adopted a number of temporary measures to meet the emergency. A one-month moratorium was declared; the exchange of notes for gold at the conversion office was suspended; supervision of foreign-exchange transactions was intrusted to the Banco de la Nacion; this bank was also authorized to mobilize for commercial purposes 30 millions of gold which it held in the conversion fund; the conversion office was empowered to rediscount commercial paper for the Banco de la Nacion and to issue notes in exchange, provided the ratio of gold to notes at no time fell below 40 per cent. The maturity of rediscounted paper was not to be in excess of 180 days, and if the maturity exceeded 90 days, an extra 1 per cent of discount was added for every additional 30 days. In cases where the paper had been rediscounted for other banks by the Banco de la Nacion it was authorized to charge the banks accommodated one- JUNE, 1920. FEDERAL RESERVE BULLETIN. fourth per cent in excess of the rate paid to the conversion office. Fifty per cent of the bank's profits on these rediscounts were to go to the conversion fund. The export of gold was prohibited. In order to facilitate dealings with foreign countries, most of which had prohibited the export of gold, and to avoid the expense and the danger of shipping gold even where this was possible, the conversion office was authorized to issue notes against gold deposited for account of the Argentine legations in foreign countries. Through this device persons importing goods from Argentina could deposit the gold to the account of the Argentine legation in their own country, and the Argentine exporters were able to obtain currency from the conversion office issued against the gold held for account of the legations. These measures prevented a panic in Argentina during the early days of the war. As the war progressed the heavy demand for Argentina's products on the part of the belligerents greatly increased her exports, and the period under review was in general a period of increasing prosperity for Argentina. MONETARY SYSTEM. Argentina's monetary system is on a gold basis, the monetary unit being the gold peso weighing 1.6129 grams of gold, 0.9 fine. The circulating medium of the country, however, is a paper peso, known as the "moneda national" (m/n), which since 1899 has a fixed ratio of 44 per cent to the value of the gold peso and is legal tender on that basis for any amount. The double monetary standard, based on the gold standard of value, is the outgrowth of a century of bitter experience with irredeemable paper currency, with no specific provision for conversion, and a widely fluctuating rate of discount as compared with gold. As early as 1820 the Argentine Government issued paper money, and in 1826 a gold peso was worth 1.88 in paper; the next year the ratio was 3.53, and continued to increase uninterruptedly until 1840 when it was 23.33; a slight decline in the ratio was followed by a renewed rise and in 1864 the ratio was 28.84. For the period from 1868 to 1875 a fixed rate of 25 was maintained, but even at this high rate conversion could not be maintained and was suspended, with the result that the ratio rose still higher, reaching 32.2 in 1879. In 1881 a new monetary law was promulgated, establishing as a basis a peso containing 24.9 grains of gold or 383.8 grains of silver, both metals being 0.9 fine. Paper money was to be redeemed at par. The Government, however, was not able to maintain conversion 593 and in 1885 paper money began to depreciate again, the ratio increasing to 3.87 by 1891. The year 1890 was one of economic disaster in Argentina, with an acute financial crisis and many failures. Finally, in 1899, the present conversion law was passed fixing the rate of conversion at 2.27 paper pesos for 1 gold peso, or 44 centavos in gold for 1 peso in paper, and providing for the building up of a gold conversion fund from certain specified sources: (1) An additional 5 per cent import duty; (2) the profits of the Banco de la Nacion; (3) proceeds of the liquidation of the Banco Nacional; (4) proceeds of the sale of the Andean railroad owned by the Government; (5) about 7 million pesos in gold held by the nation in mortgage certificates (cedulas); (6) funds especially appropriated for the purpose by the Government. All these funds were to be deposited in the Banco de la Nacion and held by that bank as a conversion fund. During the period from December 31, 1914, to December 31, 1919, Argentina's fiduciary circulation increased from 823 millions to 1,177 millions, but the gold held against this circulation also increased from 224 millions to 389 millions, the ratio of gold to paper (counting 1 paper peso as equivalent to 44 centavos in gold) increasing from 63.5 to 75.1 per cent. The composition of the gold on December 31, 1919, was as follows: In the Caja de Conversion With Argentine legations In the Banco de la Nacion Total 300,031,943 78, 996, 805 10,000,000 389,028,748 The amount held to the credit of Argentine legations has been considerably reduced since July, 1919, when it amounted to about 99 millions, of which about 62 millions was in the United States, about 34 millions in London, and small amounts in Eome and Paris. In the spring of this year the total amount held to the credit of Argentine legations was about 79 million pesos, of which about 75 millions (72 million dollars) was held in the Federal Reserve Bank of New York for account of the Argentine legation in Washington. There has thus been a decided reduction of the gold held in London. The suspension of gold payments by the conversion office, which was decreed at the beginning of the war, is still in force. There has been some agitation in favor of resumption, but it is maintained that this would result in withdrawals of gold for export, and that it would not be desirable so long as most of the countries to which Argentina's exports go are not on the gold basis. 594 FEDERAL. RESERVE BULLETIN. FOREIGN EXCHANGES. Argentina's trade balance, which was favorable before the war, became much more favorable when the imports from European countries greatly diminished, while Argentina's exports increased. It is but natural, therefore, that the pound sterling, the franc, and the lira were at a discount in Buenos Aires practically throughout the period under review. (See table on p. 598.) The pound sterling, which is worth 5.04 gold pesos at par, declined to 4.56 pesos by January, 1918, but rallied to 4.78 the next month as a result of the export credit granted by Argentina. Since that time the pound has declined continuously and was quoted at 3.47 pesos in February, 1920, but advanced to 3.68 pesos in March. The franc and the lira followed the same general trend but fell much lower than the pound, the March, 1920, quotation being 7.46 pesos for 100 francs and 5.71 pesos for 100 lire, as against a par of 20 pesos for 100 francs or lire. Exchange on Madrid was above par practically throughout the period of the war, but has fallen to 18.12 pesos per 100 pesetas in March, 1920. Argentina's trade balance with the United States has been continuously in Argentina's favor since 1914, but the parity of the dollar was maintained by gold exports, which amounted to 27.1 million dollars in 1916 and 25.2 millions in 1917. When the United States proclaimed an embargo on gold in the fall of 1917 the value of the dollar in Buenos Aires declined to as low as 94 pesos per 100 dollars in December, 1917, as against a par of 103.65. In 1918 dollar exchange was below par because it was linked in New York with sterling exchange through the "pegging" arrangement as well as because of the unfavorable trade balance and the gold embargo. Since the "unpegging" of the exchanges in New York in March, 1919, and the lifting of the gold embargo on June 7, 1919, the dollar has risen nearly to par in Argentina, and in fact was quoted above par in August of that year. Since June 7 the United States exported to Argentina a total of $106,705,000 in gold, some of which was shipped on British account. BANKS. There is no governmental supervision over banks in Argentina. The banks compete keenly among themselves and are restrained only by business caution. In 1912 and 1913, as the result of poor crops and the overexpansion of credit, a serious financial depression occurred. The principal non-governmental banks with local capital are the Banco Espanol; the Banco de la Provincia de Buenos Aires, the Banco de Italia y Rio de la Plata, and the Banco JUNE, 1920. Frances del Rio de la Plata. These banks are engaged largely in financing the agricultural regions and domestic enterprises, while the foreign banks, in addition to ordinary banking business, finance the foreign business of the country, engage in foreign exchange transactions, and act as agents for interests of their nationals in Argentina. The table on pages 599-600 shows the deposits, advances and discounts, cash, and paid-in capital of the principal Argentina banks. The Argentine law requires foreign banks to assign a definite part of their capital to the branch opened in Argentina, this capital to be paid in gold into the Caja de Conversion in exchange for paper money. The foreign banks pay trading licenses varying in amount with the volume of the business. There is agitation in favor of taxing foreign banks 20 per cent of their profits, but no action has yet been taken. The foreign banks generally maintain cash reserves of over 25 per cent against deposits, lower reserves giving rise to unfavorable comment, while some of the banks have reserves amounting to as high as 45 per cent. The most powerful banks are the British, which finance exports to Great Britain and take care of British investments in railroads and otherwise. It will be noted that the deposits of the Anglo-South American Bank increased from 12 to 88 million pesos between 1914 and 1919, those of the British South American from 50 to 87 millions, and those of the other British banks also show rapid growth. The German Transatlantic Bank, on the other hand, whose business was closely connected with German commerce, shows a decided decline in deposits and a less marked decline in discounts and advances.1 The French and Italian banks increased their business very materially during the period. The National City Bank of New York entered the Argentine field in November, 1914. It has increased its business very rapidly, its deposits advancing from 2 J million to 67 million pesos between 1914 and 1919. This bank acts as agent of American interests, and through it an American loan of 25 millions was negotiated in 1915. The First National Bank of Boston is also represented, and the Guaranty Trust has an office in Buenos Aires. In May, 1918, the Yokohama Specie Bank opened a branch in Buenos Aires. The Banco de la Nacion was formed following the panic of 1890, when the two semiofficial banks (the Banco Nacional and the 1 The difficulties under which German business concerns were laboring in Argentina are illustrated by the fact that the German Transatlantic Electric Company, one of the largest industrial establishments in the country, unable to secure coal on account of being on the Allied blacklist, was forced to use corn as fuel in its plant. Corn was available because it could not be exported for lack of shipping space. JUNE, 1920. FEDERAL RESERVE BULLETIN. Banco Provincial) liquidated. The intention had been to have the bank privately owned and to have it return to the Government the 50 millions that were advanced to the bank as capital, but purchasers for its stock were not found and the Government decided in 1904 to establish the bank definitely as a Government institution, and to cancel its debt of 50 millions to the Caja de Conversion. Subsequently the bank's capital was increased to 100 millions, and provision was made for an equal distribution of profits between additions to capital and a reserve fund. Previously to 1904 the bank's profits were turned in to the conversion fund. The Banco de la Nacion must keep 25 per cent reserve against its deposits. It operates as a commercial bank and competes actively with the other banks in the country. While it has authority to rediscount commercial paper for the other banks, this practice has not developed sufficiently to cause the commercial banks to consider the Banco de la Nacion otherwise than as a competitor rather than as a central bank to which they could turn for assistance. It holds about 40 per cent of all the nation's bank deposits. The legal limitation on the bank's loans to the Government is 20 per cent of the bank's capital, but this limitation is waived by the bank when it deems it wise to exceed the statutory amount. In addition to this, the bank has authority to invest up to 20 per cent of its funds in Government securities purchased in the open market. It will be noted irom the attached balance sheet of the Banco de la Nacion for the end of each year 1913-1919 that, while the deposits increased from 541 million pesos to 1,250 million pesos, there was no corresponding increase in discounts and rediscounts, the amount under this head being actually only 361 millions at the end of the period, as compared with 420 millions at the beginning. On the other hand, there is shown a decided increase from 253 millions to 357 millions in cash and a growth of advances in current account from 58 to 315 millions. This item includes the advances to the Government. The Banco de la Nacion during the period under discussion has held very large amounts as reserves and has advanced large sums to the Government, while its holdings of commercial paper show an actual decline. There is considerable agitation in Argentina in favor of the establishment of a central bank with functions similar to the central banks of Europe or of the Federal Reserve Banks in America. A project of a law establishing such a bank is at present under consideration. One of the arguments used is that at present the banks, owing to a lack of 595 credit organization and of enterprising spirit, hold very large reserves against their deposits and that a great deal of capital is thus tied up which might otherwise be turned into productive channels. The proposed bank would also regulate bank credits and rates of interest, as well as lend elasticity to the rigid currency system under the purely mechanical functions of the Caja de Conversion. The lack of enterprise on the part of local banks is due mainly to the fact that prior to the war the Old World had annually large amounts of capital to invest in the new and undeveloped countries, and that Argentine industrial development was pushed by British, French, and German capital which was seeking for an outlet and was at the same time engaged in the development of markets for its home industries. Conditions have changed as the result of the war. Europe will have no surplus capital to export for some years and will need to consume a much larger share of the products of her industries. Great Britain, far from being in a position to finance Argentine enterprises, has been obliged to dispose of considerable quantities of Argentine securities held in the British Isles. Thus in 1916 the British Government, in connection with its efforts to improve the exchange position of the pound in America, acquired by purchase or loan about $300,000,000 of Argentine securities owned by British subjects with the view of using these securities as part collateral for bank and other credits in the United States. Neither can Argentina expect much assistance from the United States, where capital is greatly in demand and can be placed on advantageous terms at home. Many public men in Argentina maintain that a development of local industries, backed by local capital, is the greatest need of the day, and that the establishment of a central bank will be a step in the direction of creating the machinery necessary for such a development. It is to be expected that if Argentina is to continue to export large quantities of her raw materials to Europe she will have to develop a system of granting commercial credits to the European nations, which, although much in need of Argentina's products, are not in a position to pay cash for their imports. It appears that Argentina will at least temporarily be forced to become a lending nation rather than a constant borrower of European funds. A national mortgage bank, founded in 1886, does a large business in lending money on real estate in the form of so-called cedulas, or bonds to bearer, which carry an interest charge of 6 or 7 per cent. About 600,000,000 paper pesos of such cedulas were outstanding in June, 1919. In 1915 the Government established a postal savings bank. A project for 596 FEDERAL, RESERVE BULLETIN. JUNE, 1920. the establishment of a national agricultural on August 10, 1919, the floating debt of the bank for the purpose of fostering rural devel- Republic amounted at that time to 572,656,992 paper pesos, distributed as follows: opment is under discussion. Short-term loans outstanding abroad (£5,000,000 in London and $25,000,000 in New contracted in May, 1915, and due Paper pesos. The Argentine Government in January, 1918, York, May 15, 1920) granted a $200,000,000 credit to the English Loans from banks and other establishments in 116,159,091 and French Governments for the purpose of Argentina, including the Banco de la 306, 950,000 facilitating the export of Argentine agricul- Nacion Other amounts due to the Banco de la Nacion. 97,072, 600 tural products. The terms of this arrangement Treasury bills 28,075, 301 were as follows: Floating debt from previous years 19,400,000 Estimated supplementary credits 5,000,000 The British, and French Governments shall buy in the Argentine Republic the surplus of wheat and other cereals Total 572,656,992 to an approximate amount of 2,500,000 tons, undertaking to export the same before November 1, 1918. The British and French Governments will pay a minimum price of It is of interest to note that considerable $12.50 paper currency for every hundred kilos of wheat, amounts of the floating debt were loaned to the $7 paper currency for every hundred kilos of oats, and $15 Argentine Government by German firms on the paper currency for every hundred kilos of linseed, all of allied black list, which had no other way of good quality, f. o. b. The Argentine Government shall open a credit in favor investing their money. A project of a law has of the British Government up to the sum of $100,000,000 been introduced and its passage urged by the Argentine gold or its equivalent in paper currency and a President to authorize a funding of the floating similar credit for a similar amount to the French Government. The amounts drawn under these credits shall debt by the issue of 600 million pesos in bonds carry interest at 5 per cent per annum. to be amortized through a 2 per cent amortizaThe credits opened shall be utilized for the purchase of tion fund. This fund may be used during the Argentine cereals and may also be used for the acquisition first 20 years either wholly or in part for prizes of other products of the country. The British and French Governments shall deposit in to be determined by half-yearly drawings. the respective Argentine legations the acknowledgments The amount of the prizes is left to the Governof the amounts drawn under the above-mentioned credits. ment to determine, but must not be less than CREDITS TO ALLIES. These credits were used up, and in February, 1919, another agreement was made granting a further credit of 200 million to England, France, and Italy. This credit, however, the terms of which are discussed in the FEDERAL RESERVE BULLETIN for November, 1919, page 1048, has not been approved by the Congress up to the present time. Recently the Chamber of Deputies authorized the granting of the credits with two important modifications in the terms: The three countries are to be jointly responsible for the full amount of the loan, and the President is not to have authority, as originally intended, to issue up to 60 millions of notes from the Caja de Conversion for the purposes of the transaction. The Senate's action on the matter has not as yet been reported. NATIONAL FINANCES. Argentina has a funded debt of about 592 million gold pesos, part of which is called the domestic debt and part the foreign debt; practically all of the latter and more than half of the former is held abroad. Government expenditures of Argentina are generally in excess of the revenues, and the annual deficits have greatly increased in recent years as the result of the falling off of customs receipts. According to a statement by the minister of finance to the Chamber of Deputies double the value of the bonds, the prize-winning bonds being retired. No action on this project has been reported. The 50 million loan that fell due in May of this year, half of which was contracted in the United States and half in England, but all of which was subsequently transferred to this country, has been liquidated, by means of negotiating a 5 per cent loan from England payable in January, 1921, when an installment of England's grain loan from Argentina falls due. In liquidating the Argentine obligation, the British Government used some of the gold recently shipped from England to the United States. Realization is growing in Argentina of the fact that dependence on import duties as the principal source of revenue is undesirable in view of the uncertainty of this source, as demonstrated by the great decline of customs receipts during the war. Nor is the reestablishment of peace, with the greatly reduced production and purchasing power of the Old World, likely to solve the fiscal difficulties of the Argentine Government. The introduction of a budgetary system is advocated, and a project of an income-tax law has been transmitted to Congress. The increasing difficulty experienced by the Argentine Government in obtaining loans from abroad, owing to the depletion of European finances and the heavy demands on capital in the United States, adds impetus to 597 FEDERAL RESERVE BULLETIN. JUNE, 1920. the movement for the introduction of a system of domestic taxation more in keeping with modern developments. SOURCES CONSULTED. De Vedia, Agustin: El Banco National, Buenos Aires, 1890. Hansen, Emilio: La Moneda Argentina, Buenos Aires, 1916. Hansen,Emilio: La Reforma Monetaria, Buenos Aires, 1906. Mexia, Ramos Ezequiel: Organization Bancaria y Soluciones Financieras,Buenos Aires, 1917. Pinedo, Agustus F.: Critica de la Politica Bancaria en la Republica Argentina, Buenos Aires. 1917. Soares, Carlos F.: Economia y FinanzasdelaNacion Argentina, Buenos Aires, 1916. Tornquist, Ernesto y Cia: Business Conditions in Argentina, August and December, 1918, April, July, October, 1919, and January, 1920. Central Executive Council, International High Commission: Argentine Financial and Economic Conditions and Public Debt. (Manuscript.) "Washington, November, 1919. American Dollar Securities Committee: Report to the House of Commons, London, 1919. Department of Commerce: The Economic Position of Argentina During the War. Washington, 1920. Government publications: Direccion General de Comercio e Industria: Censo Industrial y Comercial de la Republica Argentina, ano 1908-1914. Direccion General de Estadistica de la Nation: Anuario del Comercio Exterior, de la Republica Argentina, ano 1916, 1917, 1918. Direction General de Estadistica de la Nation: Extracto Estadistico de la Republica Argentina, al ano 1915. Direction General de Estadistica de la NaciCn: Intercambio Economico de la Republica, 1910-1917. Banco de la Nation Argentina, 1913-1918: Published by the bank. Annual reports of the Banco de la Naci<5n Argentina, 1913-1918. Periodicals: Revista Sudamericana de Bancos, Ferrocarriles, Seguros y Comercio (biweekly), Buenos Aires. Argentina Economica, Revista Financiera (semimonthly), Buenos Aires. Revista de Economia y Finanzas (weekly), Buenos Aires. Boletin oficial de la Camara Comercial (weekly), Buenos Aires. Revista de Economia Argentina (monthly), Buenos Aires. La Prensa (daily), Buenos Aires. Assets and liabilities of the Banco de la Nacidn Argentina on Dec. 31, 1913-1919. [In 1,000 paper pesos.] 1913 1914 1915 1916 1917 1918 11,893 57,755 3,799 6,640 419,941 7,513 18,305 4,405 1,284 18,652 51,166 3,268 19,817 445,494 15,007 115,587 1,597 37,948 328,992 19,724 20,344 4,091 1,284 45,455 1,977 140 42,532 147,934 1,462 42,295 293,748 17,392 22,404 4,091 21,283 45,455 1,884 460 5,971 249,617 1,690 26,449 282,452 6,054 24,877 25,286 314,905 2,139 22,026 361,099 2,055 25,586 43,296 43,849 45,455 1,285 46,144 14,805 68 400,501 491 239,583 1,676 36,209 293,869 11,236 24,763 4,091 45,992 45,455 1,762 11 72,000 43,079 18 379,709 72,000 380,657 72,000 342,970 397,565 338,759 356,506 289,496 1919 ASSETS. Foreign correspondents Advances in current accounts and on securities.. Bills receivable Accounts for collection Bills discounted and rediscounted Doubtful debts Real estate National bonds, series A Other Federal securities Mobilization of conversion fund, Law 9479 Furniture and stationery Interest earned but not received Ministry of Finance, Law 10251 Conversion account Branches, operations pending Cash on hand Agreements with France and Great Britain Total.. 1,875 298 19,523 4,405 1,284 45,455 1,960 552 31,245 12,291 *253,'404 *259,"24i 20,932 9 385,712 818,357 903,977 998,799 1,056,314 1,199,944 1,876,680 1,903,508 128,000 36,605 68,182 31,245 128,000 33,102 68,182 541,385 5,167 7,773 128,000 33,102 68,182 12,291 45,455 605,411 5,359 6,177 45,455 692,364 2,056 8,708 128,000 33,102 68,182 14,805 45,455 755,655 1,875 9,240 129,082 34,186 68,182 43,080 45,455 871,056 1,902 7,001 132,437 37,541 68,182 380,657 45,455 1,195,044 2,008 15,356 138,551 43,652 68,182 342,970 45,455 1,249,730 4,118 10,850 818,357 903,977 998,799 1,056,314 1,199,944 1,876,680 1,903,508 LIABILITIES. Capital Surplus Conversion fund, Law 3871 Conversion account Mobilization of conversion fund... Deposits, time and demand Discounts, unearned but collected.. Branches, operations pending Total.. 598 FEDERAL RESERVE BULLETIN. Buenos Aires exchange rates on foreign JUNE, 1920. countries. (Source: La Prensa, Buenos Aires; Buenos Aires Herald.) England (par: £=5.04 pesos). Date. France (par: 100 francs-20 pesos). Spain (par: 100 pesetas= 20 pesos). Italy (par: 100 lire= 20 pesos). United States (par: $100=103.65 pesos). Jan 10 Feb.10 Mar 10 Apr 14. May 12 4.98 4.98 4.98 5.01 5.02 5.04 5.05 Per cent. 98.81 98.81 98.81 99.40 99.60 100.00 100.20 19.76 19.96 19.69 19.88 19.96 20.04 20.04 Per cent. 98.30 99.80 98.45 99.40 99.80 100.20 100.20 19.05 18.80 18.73 18.94 19.05 19.12 19.34 Per cent. 95.25 94.00 93.65 94.70 95.25 95.60 96.70 19.97 20.75 19.80 20.00 20.08 19.96 20.00 Per cent. 99.85 103.75 99.00 100.00 100.40 99.80 100.00 104.50 104.00 103.40 103.75 101.20 104.60 104.90 Per cent. 100.82 100.34 99.76 100.10 97.64 100.92 101.21 Oct 10 Nov. 10 Dec 10 5.31 5.10 5.06 105.36 101.19 100.40 21.19 20.83 20.37 105.95 104.15 101.85 21.28 20.00 19.57 106.40 100.00 97.85 20.83 19.88 19.72 104.15 99.40 98.60 105.75 105.50 104.00 102.03 101.78 100.34 5.01 5.00 5.00 5.00 5.02 5.02 5.02 5.10 5.03 4.98 4.96 4.97 99.40 99.21 99.21 99.21 99.60 99.60 99.60 101.19 99.80 98.81 98.41 98.61 19.96 19.96 19.80 19.69 19.65 19.34 18.80 18.94 18.25 18.25 17.95 18.02 99.80 99.80 99.00 98.45 98.25 96.70 94.00 99.70 91.25 91.25 89.75 90.10 20.00 20.04 21.05 21.01 20.53 20.16 19.69 20.70 20.37 20.08 20.00 19.88 100.00 100.20 105.25 105.05 102.65 100.80 98.45 103.50 101.85 100.40 100.00 99.40 19.34 19.08 17.99 18.08 17.86 17.89 17.36 17.24 16.84 16.78 16.61 16.10 96.70 95.40 89.95 90.40 89.30 89.45 86.80 86.20 84.20 83.90 83.05 80.50 103.70 100.05 104.25 104.25 104.60 105.00 106.90 108.00 105.20 106.40 105.10 100.58 100.58 100.92 101.30 103.14 104.20 101.50 102.65 101.40 4.98 4.98 4.93 4.95 4.94 4.92 5.00 5.05 4.97 4.87 4.85 4.78 98.81 98.81 97.82 98.21 98.02 97.62 99.21 100.20 98.61 96.63 96.23 94.84 17.99 17.73 17.70 17.33 17.57 17.67 17.83 17.99 17.83 17.57 17.48 17.21 89.95 88.65 88.50 86.65 87.85 88.35 89.15 89.95 89.15 87.85 87.40 86.05 20.00 19.92 19.80 20.12 20.62 21.37 21.37 21.55 21.10 20.62 20.88 21.60 100.00 99.60 99.00 100.60 103.10 106.85 106.85 107.75 105.50 103.10 104.40 108.00 15.90 15.55 15.50 15.80 16.34 16.42 16.47 16.45 16.34 15.85 15.29 14.81 79.50 77.75 77.50 79.00 81.70 82.10 82.35 82.25 81.70 79.25 76.45 74.05 104.70 104.40 103.60 103.70 104.00 104.10 104 90 106.00 104 35 102.40 101.80 100.00 101.01 100.72 99.95 100.05 100.34 100.43 101.21 102.28 100.68 98.79 98 22 96.48 4.73 4.75 4.76 4.91 4.89 4.80 4.80 4.83 4.86 4.86 4.67 4.49 93.85 94.25 94.44 97.42 97.02 95.24 95.24 95.83 96.43 96.43 92.66 89.09 17.30 17.09 17.12 18.05 18.02 17.61 17.61 17.73 17.73 17.70 17.06 16.53 86.50 85.45 85.60 90.25 90.10 88.05 88.05 88.65 88.65 88.50 85.30 87.65 21.32 21.32 21.23 22.62 22.62 23.09 23.64 23.36 22.83 23.98 23.20 22.83 106.60 106.60 106.15 113.10 113.10 115.45 118.20 116.80 114.15 119.90 116.00 114.15 14.37 13.89 13.07 14.66 14.66 14.31 14.06 13.91 13.40 13.23 12.20 11.36 71.85 69.45 65.35 73.30 73.30 71.55 70.30 69.55 67.00 66.15 61.00 56.80 99.30 99.70 100.03 103.00 102.50 101.10 101.00 102 10 102.30 102 10 98.85 94.00 95.80 96.19 96.51 99.37 98.89 97.54 97.44 98 50 98.70 98 50 95.37 90.69 4.56 4.78 4.76 4.72 4.62 4.65 4.69 4.70 4.69 4.69 4.67 4.64 90.48 94.84 94.44 93.65 91.67 92.26 93.06 93.25 93.06 93.06 92.66 92.06 16.81 17.64 17.54 17.33 17.01 17.18 17.30 17.36 17.86 17.86 17.83 17.86 84.05 88.20 87.70 86.65 85.05 85.90 86.50 86.80 89.30 89.30 89.15 89.30 23.42 24.33 24.63 25.84 27.25 28.41 27.47 26.46 22.99 20.83 19.92 19.49 117.10 121.65 123.15 129.20 136.25 142.05 137.35 132.30 114.95 104.15 99.60 97.45 11.47 11.74 11.24 11.70 10.76 10.62 10.75 12.63 14.33 16.08 15.87 15.34 57.35 58.70 56.20 58.50 53.80 53.10 53.75 63.15 71.65 80.40 79.35 76.70 95.80 100.20 100.00 99.00 96.60 97.60 98.65 98.60 98.50 98.55 97.90 97.65 92.43 96 67 96 48 95.51 93.20 94.16 95.18 95 13 95 03 95.08 94.45 94.21 4.67 4.67 4.66 4.65 4.64 4.66 4.64 4.52 4.33 4.34 4.24 3.92 92.66 92.66 92.46 92.26 92.06 92.46 $2.06 89.68 85.91 86.11 84.13 77.78 17.86 17.86 17.86 17.01 16.21 15.87 15.43 13.57 12.61 12.25 11.30 9.09 89.30 89.30 89.30 85.05 81.05 79.35 77.15 67.85 63.05 61.25 56.50 45.45 24.75 19.84 20.37 20.37 20.16 20.62 20.16 19.92 19.88 19.88 20.12 20.37 123.75 99.20 101.85 101.85 100.80 103.10 100.80 99.60 99.40 99.40 100.60 101.85 15.43 15.43 15.38 13.89 13.23 12.99 12.90 11.83 10.78 10.53 8.89 7.91 77.15 77.15 76.90 69.45 66.15 64.95 64.50 59.15 53.90 52.65 44.45 39.55 98.20 98.10 97.90 99.80 99.10 101.50 103.00 100.00 103.70 103.60 102.60 101.50 94.74 94.65 94.45 96.29 95.61 97.93 99.37 96.48 100.05 99.95 98 99 97.93 3.83 3.47 3.68 75.99 68.86 73.02 9.17 7.09 7.46 45.85 35.45 37.30 19.53 18.18 18.12 97.65 90.90 90.60 7.58 5.73 5.71 37.90 28.65 28.55 101.80 101.70 110.60 98.22 98.12 98.02 1914. June 10 July 11 Aug Sept 1 1915. Jan 10 Feb. 10 . Mar 10 Apr. 10 May 11 June 11 July 9 Aug. 10 Sept. 10 Oct. 10 Nov 10 Dec. 10 . . . . 1916. Jan 11 Feb.10. Mar 10 Apr. 10. May 10 June 10 . . July 12 Aug. 10 Sept. 10 Oct. 10. . . Nov 10 Dec 10 ...... 1917. jan 10 Feb. 10 Mar .10 Apr. 10 May 10 June 10 July 10 Aug. 10 Sept 11 Oct. 10 Nov 10 Dec. 11 . . . 1918. jan 10 Feb. 10 Mar. 10 Apr 10 May 10 June 10 July 10 Aug. 10 Sept. 10 Oct. 10 Nov 10 Dec. 10 1919. jan 10 Feb.9 Mar. 11 Apr 10 May 10 June 12 July 11 Aug 10 Sept. 10 Oct 11 Nov. 11 Dec 10 jan 11 Feb.10 Mar 6 . . 1920. JUNE, 1920. 599 FEDERAL RESERVE BULLETIN. Deposits, advances and discounts, cash, and capital of the principal Dec. SU 1919. banks in Argentina: June SO, 1914 to 1919, and [In 1,000 paper pesos.] Deposits. Banks. Alem&n Transatl&ntico Argentino Uruguay Anglo Sud Americano Brit&nico de la America del Sud Comercial del Azul Comercial Italiano Espana America Espanol del Rio de la Plata France's 6 Italiano France's del Rio de la Plata Galicia y Buenos Aires Germdnico de la America del Sud Holandes de la America del Sud Italia y Rio de la Plata Italo Belga Londres y Brasil Londres y Rio de laPlata Naci6n Argentina Nuevo Italiano Popular Argentino Provincia de Buenos Aires The National City Bank of New York The First National Bank of Boston The Royal Bank of Canada Banks with capital of less than 1,000,000 pesos. Total- June 30, 1914. June 30, 1915. June 30. 1916. June 30, 1917. 55,246 37,946 38,841 40,828 12,150 50,070 13,326 45,993 'i7,*299' 31,904 54,037 675 564 193,958 4,209 64,420 8,421 14,924 11,957 605 132,997 6,733 14,410 717 151,061 8,821 20,887 866 184,902 27,198 10,373 11,540 10,619 65,824 9,739 16,771 147,909 669,263 33,184 20,705 127,164 11,323 15,749 16,814 19,808 72,191 12,510 17,829 139,284 777,972 40,123 20,248 17,950 27,643 89,742 25,763 21,140 152,290 830,515 50,974 23,667 201,051 33,818 92,830 16,588 159,868 558,539 21,530 122,135 7,403 1,422,418 7,6 1,391,633 June 30, 1918. 47,240 11,996 65,582 58,933 June 30, 1919. Dec. 31, 1919. 9,334 645 2,931 2,640 38,675 12,392 87,663 87,223 44,876 36,368 2,824 269,257 52,996 42,397 41,238 18,698 55,952 158,664 33,884 30,196 196,725 1,249,700 86,486 31,077 303,303 67,280 54,737 3,562 3,595 1,599,824 1,856,068 2,572,099 2,882,370 3,009,766 20,697 150,399 26,073 29,623 1,538 248,913 17,045 37,289 36,838 26,928 44,486 124,999 38,479 24,702 182,380 ,134,247 66,320 27,891 255,171 47,057 41,511 38,110 13,100 78,230 76,820 35,560 33,240 2,700 250,410 66,570 31,330 41,670 21,070 59,440 139,280 54,540 29,040 183,960 1,201,130 82,290 27,710 291,060 62,010 60,460 Advances and discounts. Banks. Alem&n Transatl&ntico Argentino Uruguay Anglo Sud Americano Brit&nico de la America del Sud Comercial del Azul Comercial Italiano Espana America Espanol del Rio de la Plata Frances e" Italiano France's del Rio de la Plata Galicia y Buenos Aires. Germ&nico de la America del Sud Holandes de la America del Sud Italia y Rio de la Plata Italo Belga Londres y Brasil Londres y Rio de la Plata Nacion Argentina Nuevo Italiano Popular Argentino Provincia de Buenos Aires The National City Bank of New York The First National Bank of Boston The Royal Bank of Canada Banks with capital of less than 1,000,000 pesos. Total June 30, 1914. June 30, 1915. June 30, 1916. June 30, 1917. 52,061 34,147 32,771 27,070 36,376 41,860 28,618 30,470 29,348 29,422 36,474 30,032 10,257 1,096 212,128 12,789 102,812 17,407 23,060 11,883 1,091 180,779 14,686 1,188 195,475 10,002 18,741 1,199 207,340 19,596 134,083 6,542 20,894 29,516 16,315 89,563 6,838 12,870 67,313 419,423 35,922 34,929 150,541 29,327 27,704 16,743 30,140 106,265 11,979 11,317 68,469 485,498 44,865 34,910 177,474 25,435 2,976 8,348 12,347 1,885 1,401,615 1,187,013 1,238,690 1,383,136 94,630 ! 18,696 108,801 454,680 34,822 32,570 144,594 5,892 18,266 23,813 7,544 88,196 4,352 12,402 76,439 450,124 29,702 34,322 June 30, 1918. 27,274 1,351 53,755 37,390 22,930 1,424 237,470 26,442 24,042 35,060 16,366 60,502 130,029 22,048 13,667 74,930 477,658 50,674 35,567 200,183 28,138 34,530 3,203 1,614,6 June 30, 1919. 26,960 11,430 80,220 52,380 35,090 26,550 2,080 232,540 33,820 29,120 42,380 18,040 68,900 137,160 32,400 19,410 86,510 625,530 67,040 36,360 227,660 67,120 49,020 Dec. 31, 1919. 31,445 3,730 69,812 49,515 43,616 29,243 2,556 211,290 47,719 36,041 45,143 16,193 68,204 143,505 33,122 19,629 92,333 676,005 72,758 40,197 252,572 72,768 44,459 2,306 4^507 2,011,450 2,113,336 600 FEDERAL RESERVE BULLETIN. JUNE, 1920. Deposits, advances and discounts, cash, and capital of the principal banks in Argentina: June 30, 1914 to 1919, and Dec. 31, 1919—Continued. [In 1,000 paper pesos.] Cash held in the country. Banks. June 30, 1914. Aleman Transatlantico Argentine* Uruguay Anglo Sud Americano Britanico de la America del Sud Comercial del Azul Comercial Italiano Espana America Espanol del Rio de la Plata France's 6 Italiano Frances del Rio de la Plata Galicia y Buenos Aires Germanico de la America del Sud Holandgs de la America del Sud Italia y Rio de la Plata Italo Belga Londres y Brasil Londres y Rio de la Plata. Naci6n Argentina Nuevo Italiano Popular Argentino Provincia de Buenos Aires The National City Bank of New York The First National Bank of Boston The Royal Bank of Canada Banks with capital of less than 1,000,000 pesos. June 30, 1917. June 30, 1916. 19,850 13,670 12,646 16,329 5,998 18,892 6,374 13,917 8,149 16,710 9,549 21,760 5,088 359 77,330 1,919 24,094 3,322 7,675 4,648 345 36,725 5,801 4,349 396 42,711 3,076 6,560 418 61,778 6,734 3,617 3,011 5,866 17,205 4,258 8,006 88,801 370,950 11,617 6,171 42,932 6,576 4,869 5,052 6,939 4,972 5,919 11,052 23,758 9,751 5,327 71,343 440,262 14,582 5,438 72,304 11,172 June 30, 1918. 27,738 11,676 30,974 41,099 June 30, 1919. 18,520 3,730 27,070 21,410 8,420 10,080 1,190 55,080 27,740 15,170 9,820 6,930 13,600 29,580 22,820 9,650 91,420 391,170 24,860 7,550 122,750 16,260 15,130 Dec. 31, 1919. 1,452 4,443 4,310 343 1,351 1,900 13,706 6,307 46,601 29,310 8,370 10,613 999 53,203 6,394 13,757 8,980 7,274 15,208 43,674 12,866 8,792 94,082 356,506 25,038 7,767 113,834 16,435 15,902 2,852 1,941 611,413 654,933 716,518 799,351 1,001,891 951,850 290,411 23,110 7,124 78,005 278,170 11,517 9,148 38,360 Total. June 30, 1915. 16,988 4,869 6,720 74,200 429,114 11,593 5,184 51,136 7,507 10,866 805 67,853 14,241 17,514 12,626 12,672 25,733 34,348 16,490 12,338 101,851 388,526 23,522 9,125 111,551 19,935 9,057 Paid-in capital. Banks. June 30, 1914,. Aleman Transatlantico Argentino Uruguay Anglo Sud Americano Britanico de la America del Sud Comercial del Azul Comercial Italiano Espana America Espanol del Rio de la Plata Frances 6 Italiano Frances del Rio de la Plata Galicia y Buenos Aires Germanico de la America del Sud Holande"s de la America del Sud Italia y Rio de la Plata Italo Belga Londres y Brasil *.. Londres y Rio de la Plata Nacidn Argentina Nuevo Italiano Popular Argentino Provincia de Buenos Aires The National City Bank of New York " The First National Bank of Boston The Royal Bank of Canada Banks with capital less than 1,000,000 pesos. June 30, 1917. 8,295 8,295 8,295 8,295 11,339 10,475 11.339 10,309 11,339 10,309 5,000 1,400 100,000 5,682 63,636 30,000 3,932 4,997 1,200 97,798 5,682 4, 998 1,256 98,012 5,682 5,000 1,281 98,146 5,682 16,877 3,930 2,841 22,727 2,273 4,832 9,659 128,000 5,000 10,505 62,093 2,355 16,924 3,930 6,630 22,727 2,273 4,832 9,659 128,000 5,000 10,519 62,301 2,355 16,968 3,930 8,855 22,727 2,273 4,832 9,659 128,000 5,000 10,515 62,412 2,355 June 30, 1918. July 31,i 1919. 8,295 1,228 11,339 10,309 8,295 2.513 11,339 10,309 5,000 1,301 98,391 5,682 5,682 17,024 3,930 8,855 22,727 2,273 4,832 9,659 129,082 5,000 10,515 62,500 2,355 2,355 5,000 1,406 98,612 5,682 31,818 17,210 Dec. 31, 1919. 8,295 2,697 17,249 9,933 9,703 2,235 2,357 3,553 11,339 10,309 1,585 5,000 1,483 98,661 5,682 31,818 17,201 4,052 8,855 22,727 2,273 4,832 9,659 138,551 5,000 10,515 62,500 2,944 2,355 2,355 2,361 512,609 420,811 424,748 419,813 430,691 463,764 473,049 4,832 9,659 128,000 5,000 10,550 75,000 1 June 30, 1916. 11,338 10,309 22,727 Total. June 30, 1915. Junefiguresnot available. 3,930 8,855 22,727 2,273 4,832 9,659 132,437 5,000 10,515 62,500 2 944 2,355 JUNE, 1920. 601 FEDERAL RESERVE BULLETIN. Report of the German Reichsbank for the Calendar Year 1919. German economic conditions and the country's financial situation are discussed at some length in the 1919 report of the Reichsbank. Notwithstanding the changed political situation and the economic disorganization of the country, the bank retained its leading position in the financial field and continued to render important service to the Government and the business community. A condensed account of the report is given herewith: During the year 1919 greater demands were made upon the Reichsbank than ever before. It was called upon to provide much larger amounts of credit and of cash than even in the preceding war years, which themselves had seen great and increasing demands made on the Central Bank. This development was closely related to the industrial and political condition of Germany. During the entire year industrial activity was sorely interfered with by the lack of raw materials and of coal, by the scarcity and high prices of goods, by the prevailing unwillingness to work, by strikes, by the demands of higher wages on the part of workmen and employees, and by the bad condition of the transportation system. In the first half of the year, not only in Berlin but in many other places, repeated disturbances and bloodshed occurred. It is true that the domestic situation improved later, especially when, after the lifting of the blockade, food could be imported, but this improvement was soon counteracted by the signing of the treaty of peace on June 28—a treaty productive of grave uncertainty at home and abroad regarding the future development of Germany. As a result of these conditions, the exchange value of the mark declined in the course of the year to a previously inconceivable extent. At home, the unusually great demand for currency, which had started in the latter part of 1918, continued unabated during most of the year under review, while the Government was able to meet its heavy obligations only in part by long-term loans, so that the floating debt reached an unprecedented and undesirable volume, and treasury bills cashed, as usually, at the Reichsbank, could no longer be redeemed, in part at least, by the proceeds of bond flotations. That the condition of the Reichsbank during the past year became no worse than was actually the case was due to the influence which the troubled state of affairs itself exerted on the money market. Great sums of capital, made available during the war through the sale and liquidation of German industries, could for reasons mentioned above be only partly employed, even though the readjustment of industry to a peace-time basis was carried through almost everywhere with success. This surplus capital, therefore, was invested to an increasing extent in imperial treasury bills issued by the Reichsbank. The money market was also able to satisfy the great need of credit and money on the part of the federated states and the municipalities as well as the demands for capital by certain elements in industry and trade, due partly to increased prices and partly to the revival of business activity, although in the last months of the year a slight rise in the price of money and a decline in the overabundant resources of the money market were apparent. The causes often mentioned in previous Reichsbank reports for the increase of currency in Germany continued to be operative during the past year. Steadily rising prices and the increase in salaries and wages necessitated larger and larger amounts of currency. In addition, the amounts smuggled out of the country increased, and naturally such currency does not find its way back to the Reichsbank. The outflow from the country of currency for the purpose of paying for lawful, but especially for unlawful, imports, as well as in connection with the removal of capital from Germany, continued to a very considerable extent. Moreover heavy payments had to be made under the armistice agreement to the armies of occupation. Mention should also be made of the shipments to Belgium begun in December, 1918, of Reichsbank notes, amounting altogether to more than 1J^ billion marks, to replace the notes removed to Germany from the occupied regions during the war and credited on the books of the bank. Cash holding, of business concerns also increased far beyond the customary limit, because as a result of the strike of bank employees a prompt supply of currency could not be depended upon, and because for many reasons of an industrial and political character there was danger of the banks closing their doors. Hoarding of currency was also widespread. In view of the impossibility for the government printing office to print the required vast amount of notes, notes were printed in part by private printing plants. They were, accordingly, not safeguarded as carefully against counterfeiting as the other Reichsbank notes. Nevertheless, the Reichsbank repeatedly took occasion to protest strongly against the widespread rumors, both at home and abroad, about the supposedly serious extent of such counterfeiting The so-called emergency currency, issued by municipalities at the suggestion of the Reichsbank as a result of the currency crisis in the last quarter of the year 1918, was almost wholly withdrawn from circulation in the first months of the current year. There remained in circulation for the most part only notes of very small denominations, as the coinage of aluminum pfennig pieces authorized by the treasury department did not reach a sufficient amount until the close of the year. In order to limit currency circulation the Reichsbank took measures to encourage payments by other means, by opening postal check accounts for all subbranches, by increasing the number of clearing houses, and by other methods. Mark exchange during the year 1919 in the neutral cities of Amsterdam, Zurich, and Stockholm was quoted as follows: [Marks per 100 of foreign currency.] Amsterdam Zurich Stockholm At end of 1918. Highest in 1919. Lowest in 1919. 338.98 167.01 232.56 332.23 164.47 225.99 1,980.20 1,025.64 1,052.63 At end of 1919. 1,843.32 869.57 1,052.63 The depreciation of the mark, reckoned on the basis of the par value of the foreign currencies, at the beginning of the year amounted to about 52 per cent, and at the end of the year to something like 91 per cent at Amsterdam and Zurich and 89 per cent at Stockholm. Among the causes of the depreciation of the mark during the year under discussion, the following may be mentioned: The balance of international trade and payments became unfavorable to an extent never before known in Germany. Imports into the country, almost denuded of stores and raw materials, resulted, especially after the raising of the blockade at the beginning of the second half of the year, in large imports at high prices. Furthermore, as a result of the terms of the armistice and of the occupation by enemy armies of large areas of German territory, an effective control of customs was no longer possible, and vast quantities of unnecessary goods poured in. Exports, on the other hand, partly because of the lack of raw materials and coal, partly because of a great decline in production, especially during the early months of the year, brought in very small returns, and with de- 602 FEDERAL RESERVE BULLETIN. predating exchange, even the increasing purchases by foreign countries of German goods, securities, businesses, and other property did not furnish an adequate offset to the imports. As a consequence of the shortage of bills of exchange, legitimate imports, and, to a much larger extent, unlawful imports, had to be paid for in part by mark currency. The excessive supply abroad of mark currency and mark credits produced an increasingly depressing effect upon the rates of exchange. It became more and more difficult to meet foreign obligations by credit; at the same time continuous strikes and political upheavals, the mounting expenses of the government, and the expansion of the currency increased distrust abroad; and the severe terms of peace, now published and completely incalculable in their financial results, did not tend to better Germany's credit. In addition, came the "flight of capital," which had been going on for a long time, but which showed an extraordinary increase during the past year due to dread of untoward political and industrial developments and to fear of excessive taxation. This flight took the form not only of shipping currency abroad, but also of selling securities, goods, and property. Moreover, the terms of the armistice providing for the surrender of the merchant marine completely eliminated the shipping business as a factor making for improvement in the exchange situation. Complete control over the fast vanishing gold reserve was taken from the Reichsbank, and this increased still further the difficulty of settling foreign accounts. As in former years, the management of the Reichsbank during the past year did everything in its power to combat the depreciation of the mark. It did whatever it could to increase production and exportation—which is the best and most efficient means of improving the exchange rate. The bank has cooperated directly with the jewelry trade, to which it supplied the most important raw material (gold), even though in limited quantities. In this connection in the interest of the exchange rate the regulations regarding the use of gold were made more stringent. The object of this was to create with the smallest possible output of manufactured gold the highest possible return in foreign credits. The Reichsbank was able to enforce these strict provisions since it has the power of licensing jewelry exports, and this in turn gives it the control of the foreign bills of exchange resulting from these export transactions. The sum total of about J billion marks of foreign bills brought in during the year 1919 in payment for jewelry proves the success of this effort to increase German credits abroad. This does not, however, give a true picture, inasmuch as the jewelry manufactured out of the Reichsbank's gold will be exported principally in 1920, and most of the proceeds from the exports made in the preceding year are payable also in 1920. More extensive and more significant were the efforts made since about the beginning of October, 1919, in cordial agreement with the Minister of National Economy (Reichswirtschaffcsministerium), to increase the returns of German exports generally by having exporters and other interested groups instructed about the relation of the exchange value of our currency to the price of commodities obtainable in international trade, also by encouraging them to reckon export prices, so far as possible, with a view to bettering the exchange rate. Furthermore, the Reichsbank has again and again successfully emphasized to the Government departments concerned that under existing circumstances regulation of exports and export prices should be maintained and if necessary extended. Besides the demand for exports, the utmost restriction of imports seemed absolutely demanded as a measure for improving the rate of exchange. So long as the foreign exchange regulations were in force the bank had the power to make its influence felt vigorously in the desired direction. Since the abrogation of these regulations (by proclamation of July 23, 1919) the direct influence of the Reichsbank in limiting imports has been greatly reduced. JUNE, 1920. In order to provide the exchange necessary to pay for indispensable imports, the Reichsbank undertook to purchase bills of exchange arising from exports. It bought up long-term bills of exchange drawn on foreign merchants by domestic exporters, and thus protected the German exporters from the risk arising from currency fluctuations. The bank was also authorized to engage in term dealings in foreign exchange (Devisentermingeschafte). It acquired large amounts of foreign currency also by the sale of securities and bonds abroad and by the purchase of foreign notes and specie. In the year 1919, after the military and political collapse of Germany, the urgent need of large groups of the population to liquidate Government securities subscribed for during the war continued to an even greater degree than before. The Reichsbank, as heretofore, bought back bonds from those owners who demonstrated a real necessity for disposing of their bonds. As it did not seem practicable until after peace was made to inaugurate a system of taking up the bonds on a large scale, as had been promised at the time the war loans were floated, the Ministry of Finance made available month by month since December, 1918, a suitable sum which was ratably divided between the Reichsbank and other institutions authorized to act as fiscal agents for war-loan subscriptions. Above all, consideration was given to the smaller sales, necessitated by urgent need of money. After the signing of the treaty of Versailles, and after the announcement on July 16,1919, of the terms of peace between Germany and the allied and associated powers, there was created a consortium of the leading German banks and bankers for the purpose of regulating the market for war bonds under the direction and with the aid of the Reichsbank and under Government guarantee. To carry out the program of this consortium, to which has also been assigned the task of permanently placing the amounts to be taken up, the Federal Loan Corporation (Ltd.) was established on August 26,1919. This corporation is not an organization for profit, and will pay no dividends on its paid-in capital of 400 million marks. Besides the paid-in capital, there is an equal amount of capital subject to call, guaranteed by the consortium. The rate at which 5 per cent bonds were purchased was about 94 at the beginning of the year, but had to be lowered more and more, until at the time of the reopening of official quotations on the Bourse, it had gone down to 80. Since the rate in the open market was somewhat lower, the official quotations on the Bourse were begun on September 1, 1919, at 79.20. By November 26, 1919, the Bourse quotations declined to 77.50; afterwards, at the time of the publication of the plans for lottery bonds, the rates went up to 81.10 on October 10, 1919. Since then the bonds have been quoted at 77.50. The old charter of the Reichsbank expires by law at the close of 1920. Accordingly, a new bank law was passed on December 16, 1919, extending the charter, but making new provisions for the participation of the Government in the bank's profits. The new law adjusts the regulations governing the organization and business of the Reichsbank to the new political and industrial conditions, and takes steps to lighten the credit burden assumed by the Reichsbank during the war by permitting the bank to engage in term dealings in foreign exchange. The gold holdings of the Reichsbank decreased during the current year from 2,252.2 million marks to 1,089.5 million marks; that is to say, by 1,172.7 millions. This serious loss of more than half the gold holdings is due to the fact that from the end of March to the beginning of June about a billion marks in gold was paid to the Entente for food supplies. Smaller amounts were also sent to neutral countries to improve the foreign exchange rate, while some gold was also bought by the German jewelry trade. The bank's sales of gold resulted in a profit of 2,231 million marks. The bank's holdings of silver bars and foreign silver coins increased during the year from 638,264 to 9,756,833 marks; its holdings of loan bank notes (Darlehnskassen- JUNE, 1920. FEDERAL, RESERVE BULLETIN. scheme) increased from 5,730 million to 10,993 million marks, and its holdings of Treasury notes from 3.6 millions to 32 millions. The circulation of the bank's own notes increased from 22,187 millions at the beginning to 35,698 millions at the end of the year. The circulation of loan bank notes increased from 10,242 millions to 13,781 millions, so that the combined circulation rose from 32,430 to 49,480 million marks. The bank's ratio of gold to its own notes in circulation declined from 10.2 to 3.1 per cent during the year. The bank's earnings for the year totaled 4,263 million marks, an increase of about 3,500 millions over the 1918 amount. These large profits are due to the sale of nearly half the bank's gold and to the fact that the bank discounted a steadily growing amount of Treasury bills. The bank's income and expense account for the year was as follows: Total earnings Less: Expenses of administration Special tax in lieu of note tax Reserve for war losses Losses on foreign credits Other expenses Net profits In millions. 4,263 93 355 2,145 1, 521 34 4,148 115 Of the 115 millions of net profits, 61 millions were paid to the Government as a war-profits tax; of the remaining 54 millions, 6 millions were distributed as regular dividends of 3J per cent, while the balance, after deducting 10 per cent for the surplus fund, was divided between the Government and the stockholders in the proportion of three to one. The stockholders thus received about 16 millions (including the 6 millions of regular dividends), or 8.79 per cent, as compared with 8.68 per cent in 1918, while the Government received 33 millions as its share in the net profits, besides 416 millions in special taxes.1 Debits to Individual Account, January, 1919, to May, 1920. Following is a table presenting aggregate debits to individual account reported by clearing-house banks in 148 leading cities for each week from the beginning of 1919 to May 19, 1920. Separate figures for New York City and for the other 147 centers (combined) are also given. To illustrate the movement of debits two charts are presented, one showing by two curves the aggregate debits for all the centers included, and separately for New York City, and the other showing on a larger scale debits for the 147 centers other than New York City. The bars at the foot of the second chart represent monthly index numbers of wholesale prices as computed by the Bureau of Labor Statistics. Fluctuations from week to week in the debits to individual account are very considerable. Among the factors affecting these fluctuations 1 For profits of the Reichsbank in previous years, see Federal Reserve Bulletin for May, 1919, p. 432. 603 are seasonal demands for funds; interest and dividend payments at the middle and end of the month and especially at the end of quarters and of the year; cash requirements for holiday purchases; payments by the public of installments due on Government securities purchased on the so-called Government plan, and of income and excess-profits taxes; payments by the Government of interest on bonds; other large-scale fiscal operations, and, more especially in New York City, the volume of stock exchange transactions. During January and February of each year the downward trend represents a recession from the high levels accompanying end-of-the-year payments and the requirements of shoppers during the holiday season; the peaks shown for the middle of May, the middle of July, and the middle of November, 1919, represent payments on account of Victory note subscriptions; those shown for the middle of March, June, September, and December, 1919, and March, 1920, reflect payments of income and excess-profits taxes; while the large total in the middle of October, 1919, was due in part to interest payments by the Government on Liberty bonds of the fourth loan. Some of the fluctuations are also due to short weeks caused by legal holidays, the low totals at the end of May and at the beginning of July, 1919, being cases in point. Whfle the curves for New York City clearing-house banks and for all the 148 reporting centers show a very close parallelism, there are weeks when developments on the New York Stock Exchange are sufficiently powerful to overcome nation-wide tendencies. It should be noted in this connection that the value of the stocks sold on the New York exchange constitutes1 only a small proportion of the total amount of bank debits. The par value of all the stocks sold during the week ending January 10, 1919, for example, was 243 millions, while the aggregate debits of New York City clearing-house banks for the week ending January 8 were 4,844 millions; the proportion for that week was thus only 5 per cent. On the other hand, there are weeks when this proportion is much higher, as, for instance, in the middle of July, 1919, when stock transactions amounted to 842 millions and debits to 5,580 millions, the former constituting about 15 per cent of the latter. The influence of the volume of stock transactions on debits appears, however, to be greater than the proportion would indicate, as the sale of a block of stock may often give rise to more than one check payment. Some of the weeks when the movement of debits in New York City and outside was not in the same direction may be mentioned. The 604 FEDERAL RESERVE BULLETIN. first week in May, 1919, saw an increase in debits in the 147 centers outside of New York amounting to about 280 millions, while the debits in New York City declined by about 56 millions, owing to the fact that stock trading during the week ending May 9 totaled only about 669 millions, as compared with 814 millions the week belore. On the other hand, the last week in October was one showing a decline in volume of debits outside of New York, while in New York the volume increased, as the result of heavy trading on the stock exchange. There are many cases during the period of 72 weeks under review when the changes in the total bank transactions in New York were not of the same relative magnitude, although in the same direction, as the changes in the other centers, and in the case of 10 separate weeks the two curves moved in opposite directions. Beginning with the week of April 28 of this year, a small volume of business on the stock exchange has resulted in a continuous decline in the New York figures, while aggregate debits, though showing a general downward tendency, were larger for the weeks ending May 5 and May 19 than for the immediately preceding weeks. These differences may not appear striking on the chart, but their influence is seen in the fact that, while aggregate debits in May, 1920, were considerably larger than a year earlier, New York City debits were lower for the weeks ending May 12 and 19 of this year than for the corresponding weeks of 1919, the decline being apparently due to the comparatively small volume of stock exchange transactions during these weeks. The second chart shows clearly that in general the larger totals for debits in 1920 than in 1919 correspond closely to the rise in the price level. The index number of wholesale prices rose from 203 in April, 1919, to 266 in April of this year, an increase of 31 per cent, and debits to individual account, which averaged 3,508 millions per week in April of last year, averaged 4,644 millions in April of the current year, showing an increase of 32 per cent. It is evident, therefore, that the higher levels reached by bank debits during the current year do not represent an increased physical volume of trade but rather a larger turnover as a consequence of the greater volume of speculative dealings and more particularly of the increase in prices requiring a larger number of dollars to change hands each time a commercial and, financial transaction is consummated. JUNE, 1920. Debits to individual account at clearing-house banks in 148 leading centers; also index number of wholesale prices. [In thousands of dollars.] Week ending— New York City. All other reporting centers. Total. Index number of wholesale prices (average for 1913 =100). Jan. 8.. 1919. 15. 12. 29. Feb. 5. 12. 19. 26. Mar. 5. 12. 19. 26. Apr. 2. May June July Aug. Sept. Oct. Nov. Dec. 4,843,795 3,805,735 4,298,679 3,736,138 4,302,842 2,901,788 3,881,924 3,513,436 3,979,552 3,587,911 4,325,624 3,409,070 4,084,229 3,846,617 4,316,299 3,668,540 4,130,527 4,075,444 4,668,252 4,992,589 4,600,393 4,983,450 5,104,357 5,452,526 4,643,899 5,068,924 4,172,793 5,579,559 5,433,175 4,675,401 5,256,018 5,088,079 4,493,547 4,253,411 3,434,335 4,213,968 5,394,074 4,993,078 5,365,713 5,414,266 4,680,034 5,712,080 5,713,194 5,437,575 6,313,998 6,028,439 5,364,902 5,046,831 5,068,752 5,784,012 5,590,623 5,388,508 4,217,933 3,751,401 3,995,643 3,433,070 3,799,666 2,989,017 3,643,799 3,116,498 3,703,096 3,245,052 3,776,773 3,395,156 3,635,288 3,408,190 3,676,000 3,463,972 3,481,915 3,762,870 3,654,969 4,042,163 3,571,987 3,762,044 3,859,448 4,439,729 3,874,229 4,485,817 3,496,497 4,637,622 4,240,655 3,831,457 4,226,785 4,119,997 4,125,568 3,698,086 3,453,115 4,116,845 4,819,171 4,170,719 4,232,985 4,386,733 4,290,192 4,793,615 4,393,340 4,540,714 4,462,668 5,054,481 4,683,515 4,470,452 4,397,868 5,190,721 4,841,277 4,392,799 9,061,728 7,557,136 8,294,322 7,169,208 8,102,508 5,890,805 7,525,723 6,629,934 7,682,648 6,832,963 8,102,397 6,804,226 7,719,517 7,254,807 7,992,299 7,132,512 7,612,442 7,838,314 8,323,221 9,034,752 8,172,380 8,745,494 8,963,805 9,892,255 8,518,128 9,554,741 7,669,290 10,217,181 9,673,830 8,506,858 9,482,803 9,208,076 8,619,115 7,951,497 6,887,450 8,330,813 10,213,245 9,163,797 9,598,698 9,800,999 8,970,226 10,505,695 10,106,534 9,978,289 10,776,666 11,082,920 10,048,417 9,517,283 9,466,620 10,974,733 10,431,900 9,781,307 5,545,691 5,347,254 5,412,377 4,616,856 5,427,761 4,918,894 4,075,180 3,750,232 5,190,718 4,473,374 5,258,759 4,897,299 5,060,233 4,370,408 4,885,191 5,445,815 5,008,128 4,830,094 4,666,599 4,515,498 4,966,861 4,841,203 4,987,030 4,361,946 4,731,026 4,234,072 4,459,508 3,970,908 5,100,571 4,342,946 5,016,928 4,555,713 4,500,698 4,585,674 4,743,197 4,859,480 4,386,013 4,723,951 4,563,477 4,757,797 10,512,552 10,188,457 10,399,407 8,978,802 10,158,787 9,152,966 8,534,688 7,721,140 10,291,289 8,816,320 10,275,687 9,453,012 9,560,931 8,956,082 203 197 201 203 207 207 218 226 220 223 230 230 1920. Jan. Feb. Mar. Apr. May 7. 14.. 21. 28., 4.. 11. 18., 25. 3.. 10. 17.. 24.. 31.. 7.. 14.. 21.. 28.. 5.. 12.. 19.. 10,305,295 9,394,141 9,554,045 9,230,076 9,273,295 248 249 253 266 JUKE, 605 FEDERAL RESERVE BULLETIN. 1920. TOTAL DEBITS TO INDIVIDUAL ACCOUNT IN 143 CENTERS AND IN NEWYORKCITY. NEW JAN. YORK FEB. I MCHAAFRL \ MAY \JUliE\JULY TO TAL • \ AU6.\SEPT.\ OCT. \ NOV. \ DEC. DEBITS TO INDIVIDUAL ACCOUNT IN 14? CENTERS OTHER THAN NEW YORK, (REPRESENTED BY LINE). ALSO INDEX NUMBERS OFWHOLESALE PRICES ON BASIS OF 100 FOR AVERAGE PRICE IN 1913, (REPRESENTED BYBARS). i§ SB. S3. 4.5B. 4.SB. 43 4B 3.SB. 3SB 3B 3B ZSO% 250% 200% 200% 150% 160% 100% 100% JAN FEB. 1 MCH. \ AFRL MAY \ JUNE] JULY \ AU6.) SEPT. \ OCT. \ NOV. \ DEC JAN. 1 FEB. 1 MCH. \ APRL \ MAY 1919 J920 606 FEDEBAL RESEKVE BULLETIN. JUNE, 1920. tain, depending both on the final yield of the fall-sown crop now growing and on the prosFollowing are the May 1 forecasts by the Bureau of Crop Estimates of winter wheat pects of spring wheat production, upon which production for 1920 compared with estimates it is still too early to speculate. of actual production in 1919: Winter Wheat Forecast. In thousands of bushels. Federal Reserve district. Forecast for 1920. New York Philadelphia Cleveland Richmond. Atlanta Chicago St. Louis Minneapolis Kansas City Dallas... San Francisco Total United States . - . Estimated production in 1919. 11,319 24,022 36,621 34,473 6,689 56,651 48,028 8,379 193,131 12,959 52,375 11,605 22,590 66,229 37,094 9,695 119,881 80.388 5,264 284,900 32,734 61,256 484,647 731,636 A reduction of about 247 million bushels, or about one-third of the total production, is indicated by the forecast, large shrinkages being anticipated for the important winter wheat region comprised within the Chicago, St. Louis, and Kansas City districts. Some of the reasons for the decline in expected production are that the autumn of 1919 was unpropitious for winter wheat planting and that there was a tendency to return to normal from the exceptionally large acreages planted during the war years. Furthermore; the severity of the past winter caused large areas of wheat to be winterkilled and consequently resulted in about 12 per cent of the planted acreage being abandoned this spring. The prospects of yield per acre of land now under wheat are fair, however, with a tendency to improve. It is to be noted that the forecasted total production of winter wheat for 1920, 487 million bushels, compares favorably with the average of 440 millions estimated for the five years, 1909-1913, although the average for the five war years, 1914-1918, was 563 million bushels, or about 80 millions in excess of the expected production for the current year. It should also be mentioned that last year's production of 732 million bushels was the highest amount recorded for winter wheat in the history of the country. Of the total wheat production in 1919, amounting to 941 million bushels, winter wheat constituted about 78 per cent, while the average proportion of winter wheat in the total wheat production for the preceding 10 years was about 66 per cent. It appears, therefore, that the forecasted very large decline from last year's production of winter wheat is based on a comparison with a record crop, and that the prospects of total wheat production for this year are still uncer- Foreign Branches. There is given below a list of foreign branches of national banks and banks doing business under agreement with the Federal Reserve Board, which were open for business on May 18, 1920. NATIONAL BANKS. National City Bank, New York, N. Y.: Buenos Aires, Argentina. Plaza Once, Buenos Aires, Argentina. Rosario, Argentina. Brussels, Belgium. Antwerp, Belgium. Bahia, Brazil. Pernambuco, Brazil. Porto Alegre, Brazil. Rio de Janeiro, Brazil. Santos, Brazil. Sao Paulo, Brazil. Barranquilla, Colombia. Bogota, Colombia. Medellin, Colombia. Santiago, Chile. Valparaiso, Chile. Artemisa, Cuba. Bayamo, Cuba. Caibarien, Cuba. Camaguey, Cuba. Cardenas* Cuba. Ciego de Avila, Cuba. Cienfuegos, Cuba. Colon, Cuba. Cruces, Cuba. Cuatro Caminos, Cuba. Galiano, Habana, Cuba. Guantanamo, Cuba. Habana, Cuba. Manzanillo, Cuba. Matanzas, Cuba. Nuevitas, Cuba. Pinar del Rio, Cuba. Placetas del Norte, Cuba. Remedios, Cuba. Sagua la Grande, Cuba. Sancti Spiritus, Cuba. Santa Clara, Cuba. Santiago, Cuba. Union de Reyes, Cuba. Yaguajay, Cuba. Genoa, Italy. Lima, Peru. San Juan, Porto Rico. Ponce, Porto Rico. Moscow, Russia (temporarily closed). Petrograd, Russia (temporarily closed). Barcelona, Spain. Madrid, Spain. Cape Town, South Africa. Port of Spain, Trinidad. Calle Rondeau, Montevideo, Uruguay. Montevideo, Uruguay. Caracas, Venezuela. Maracaibo, Venezuela. Ciudad Bolivar, Venezuela. First National Bank, Boston, Mass.: Buenos Aires, Argentina. JUNE, 1920. FEDEKAL KESERVE BULLETIN. 607 International Banking Corporation, New York City—Con. Shanghai, China. Sourabaya, Java. American Foreign Banking Corporation, New York City: Singapore, Straits Settlements. Brussels, Belgium. Santo Domingo, Dominican Republic. Buenos Aires, Argentina. Sanchez, Dominican Republic. Cali, Colombia. San Pedro de Macoris, Dominican Republic. Cristobal, Canal Zone. Santiago, Dominican Republic. Harbin, Manchuria. Tientsin, China. Habana, Cuba. Tsingtao, China. Manila, P. I. Yokohama, Japan. Panama, Republic of Panama. (A branch office is also maintained in San FranPort au Prince, Haiti. cisco, Calif.). Rio de Janeiro, Brazil. Park-Union Foreign Banking Corporation, New York City: San Pedro Sula, Honduras. Paris, France. La Vega, Dominican Republic. Shanghai, China. San Francisco de Macoris, Dominican Republic. Yokohama, Japan. Sanchez, Dominican Republic. Tokio, Japan. Puerto Plata, Dominican Republic. (Branch offices are also maintained in San FranSan Pedro de Macoris, Dominican Republic. cisco, Calif., and Seattle, Wash.). Santo Domingo, Dominican Republic. The First National Corporation, Boston, Mass., has Santiago, Dominican Republic. opened no foreign branches. A branch office is mainMercantile Bank of the Americas (Inc.), New York City: tained at 14 Wall Street, New York City. The Shawmut Corporation, Boston, Mass., has opened Paris, France. no foreign branches. A branch office is maintained at 65 Barcelona, Spain. Broadway, New York City. Madrid, Spain. Affiliated institutions— The French American Banking Corporation, New York City, and the Foreign Credit Corporation, New York City, Banco Mercantil Americano de Colombia— Bogota, Barranquilla, Cartagena, Medellin, have opened no foreign branches. Cali, Girardot, Cucuta, Manizales, Honda, Armenia and Bucaramanga, Colombia. Banco Mercantil Americano del Peru— State Banks and Trust Companies. Lima, Arequipa, Chiclayo, Callao, Piura, and Trujillo, Peru. Banco Mercantil Americano de Caracas— The following list shows the State banks and Caracas, La Guayra, Maracaibo, and Puerto trust companies which have been admitted to Cabello, Venezuela. membership in the Federal Reserve System American Mercantile Bank of Brazil— during the month of May. Para and Pernambuco, Brazil. National Bank of Nicaragua— One thousand three hundred and thirty-seven Managua, Bluefields, Leon, and Granada, Nic- State institutions are now members of the aragua. system, having a total capital of $458,010,203, Banco Mercantil Americano de Cuba— total surplus of $468,545,303, and total reHabana, Cuba. Banco Mercantil de Costa Rica— sources of $10,123,652,523. San Jose, Costa Rica. (A branch office is also maintained in New Orleans, reLa.). Capital. Surplus. Total sources. Asia Banking Corporation, New York City: Canton, China. Changsha, China. District No. 2. Hankow, China. $250,000 $125,000 $377,387 Dunkirk Trust Co., Dunkirk, N. Y Hongkong, China. Manila, P. I. District No. S. Peking, China. Farmers & Merchants Bank, New OxShanghai, China. 607,762 50,000 50,000 ford, Pa Tientsin, China. District No. 4. International Banking Corporation, New York City: Barahona, Dominican Republic. The Peoples Bank of Delphos, Delphos, 497,319 Batavia, Java. 50,000 10,000 Ohio 50,000 The State Bank of Bowling Green, Ohio. Bombay, India. 440,687 Canton, China. District No. 5. Calcutta, India. 916,223 100,000 The Planters Bank, Wilson, N. C Cebu, P. I. Colon, Republic of Panama. District No. 6. Hankow, China. North Georgia Trust & Banking Co., Harbin, China. 20,000 1,234,257 200,000 Winder, Ga Hongkong, China. Kobe, Japan. District No. 7. London, England. 229,946 40,000 9,000 Peoples State Bank, Corwith, Iowa Lyon, France. Pinconning State Bank, Pinconning, 652,503 Manila, P. I. 30,000 6,000 Mich Peking, China. District No. 8. Puerto Plata, Dominican Republic. Panama, Republic of Panama. Gravois Bank of St. Louis County, St. 25,000 5,000 455, Louis, Mo Rangoon, India. BANKS DOING BUSINESS UNDER AGREEMENT WITH THE FEDERAL RESERVE BOARD. 608 FEDERAL RESERVE BULLETIN. Fiduciary Powers Granted to National Banks. State banks and trust companies—Continued. Capital. reSurplus. Total sources. District No. 9. Citizens State Bank of Culbertson, Culbertson, Mont East Helena State Bank, East Helena, Mont .' Edgar State Bank, Edgar, Mont Farmers & Miners State Bank, Belt, Mont Huntley State Bank, Huntley, Mont... Bank of Commerce, Kalispell, Mont First State Bank, Richey, Mont $25,000 $10,000 $340,611 50,000 30,000 10,500 1,500 189,442 189,047 50,000 25,000 100,000 25,000 10,000 10,000 17,000 5,000 414,770 227,430 694,266 146,958 District No. 10. Citizens Bank of Billings, Billings, Okla. American State Bank, Okmulgee, Okla. 40,000 200,000 200 20,000 25,000 416,307 220,000 District No. 11. First State Bank, Cloudcroft, N. Mex... The Coleman State Bank, Coleman, Okla Falfurrias State Bank, Falfurrias, Tex.. First State Bank, Floydada, Tex Forney State Bank, Forney, Tex Farmers State Bank, Ganado, Tex Citizens Guaranty State Bank, Lufkin, Tex Cameron County Bank, La Feria, Tex . Farmers & Merchants State Bank, Maypearl , Tex First Guaranty State Bank, Mertens, Tex .'. Guaranty Bank & Trust Co., Orange, Tex First State Bank, Seminole, Tex First State Bank & Trust Co., Waco, Tex 1,500 156,823 25,000 25,000 50,000 25,000 35,000 20,000 1,000 15,000 196,176 280,433 747,958 191,848 154,605 75,000 25,000 1,500 1,500 505,800 194,018 25,000 15,000 25,000 1,000 111, 653 100,000 40,000 10,000 20,000 421,512 229,765 200,000 30,000 1,702,637 248,596 District No. 12. Bank of Commerce, Everett, Wash Commercial Bank, Okanogan, Wash.... Pacific State Bank, South Bend, Wash.. The Mission Bank, San Francisco, Calif. 100,000 50,000 100,000 200,000 JUNE, 1920. 25,000 1,739,851 598,804 10,000 50,000 1,501,734 100,000 2,902,031 WITHDRAWAL. The Midland Trust & Savings Bank, St. Paul, Minn., has withdrawn from membership. CONVERSION. The Peoples Bank of Harrisonburg, Harrisonburg, Va., into the National Bank of Harrisonburg. LIQUIDATION. The Guaranty State Bank, Tyler, Tex. (Consolidated with the Citizens National Bank of Tyler, Tex.) The applications of the following banks for permission to act under section 11-k of the Federal Reserve Act have been approved by the Board during the month of May, 1920. DISTRICT No. 1. Guardian of estates, assignee, receiver, and committee o estates of lunatics: Peoples National Bank of Roxbury, Boston, Mass. DISTRICT No. 2. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics: First National Bank, Yonkers, N. Y. Union National Bank & Trust Company, Albany, Trustee, executor, administrator, and registrar of stocks and bonds: National American Bank, New York City. DISTRICT No. 3. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics: Union National Mount Joy Bank, Mount Joy, Pa. DISTRICT NO. 6. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics: Fourth National Bank, Atlanta, Ga. Trustee, executor, administrator, registrar of stocks and bonds: National Bank of Athens, Athens, Ga. DISTRICT No. 7. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics: First National Bank, Fontanelle, Iowa. First National Bank, Spencer, Iowa. DISTRICT NO. 8. Trustee: National Bank of Orleans, Orleans, Ind. The Franklin Trust Co., Brooklyn, N. Y., has merged with the Bank of America, New York, N. Y. CHANGE OF NAME. The Farmers & Merchants State Bank, Rusk, Tex., to "Farmers & Merchants State Bank & Trust Co." The A. Mierson Banking Co., Placerville, Calif., to "Eldorado County Bank." DISTRICT NO. 10. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics: First National Bank, Pratt, Kans. Trustee, executor, administrator, and registrar of stocks and bonds: First National Bank, Akron, Colo. Acceptances to 100 Per Cent. DISTRICT NO. 12. Since the issuance of the May BULLETIN the Trustee, executor, administrator, registrar of stocks and following bank has been authorized by the bonds, guardian of estates, assignee, receiver, and comFederal Reserve Board to accept drafts and mittee of estates of lunatics: Santa Barbara County National Bank, Santa Barbara, bills of exchange up to 100 per cent of its Calif. capital and surplus: 1 Union Savings & Trust Co., Cincinnati, Ohio. Approved in March. FEDERAL RESERVE BULLETIN. JUNE, 1920. New National Bank Charters. Commercial Failures Reported. Continued narrowing of the margin of reduction in number of failures from last year's mortality appears in the latest statistics, and the 372 commercial defaults reported to R. G. Dun & Co. during three weeks of May make a close comparison with the 381 reverses of the corresponding weeks of 19]9. The statement for April, the most recent month for which complete returns are available, discloses 504 insolvencies, or 39 less than in that month last year, which marked the lowest monthly record up to that period, but the April liabilities of $13,224,135 considerably exceed the $11,450,462 of the same month of 1919. Separated according to Federal Reserve districts, the April exhibit shows numerical decreases in eight of the twelve districts, the exceptions being the second, sixth, tenth, and twelfth districts, while the indebtedness is smaller than that of April, 1919, in the second, third, fourth, fifth, sixth, eighth, and eleventh districts. These reductions, however, are more than offset by the larger totals elsewhere, the increase in the seventh district being marked. Failures during April. Number. Liabilities. Districts. 1920 First Second Third Fourth Fifth Sixth Seventh Eighth Ninth Tenth JEleventh Twelfth Total 1919 1920 609 1919 51 117 24 36 14 36 39 14 16 32 16 109 63 107 28 41 27 29 61 44 23 20 24 76 $982,320 2,865,153 278,334 352,946 88,450 361,833 4,551,640 200,207 681.330 628,450 100,582 2,132,890 $707,783 4,365,253 333,089 653,738 660,750 475,441 1,248,110 447,162 142,857 104,545 226,206 2,085,528 504 543 13,224,135 11,450,462 The Comptroller of the Currency reports the following increases and reductions in the number and capital of national banks during the period from May 1 to May 28, 1920, inclusive: Banks. New charters issued to 47 With capital of $3, 780, 000 l Increase of capital approved for 48 1 With new capital oi 4, 014; 000 Aggregate number of new charters and banks increasing capital 95 With aggregate of new capital authorized 5, 794,000 Number of banks liquidating (other than those consolidating with other national banks under the act of June 3, 1864)... 1 Capital of same banks 25, 000 Number of banks reducing capital 0 2 Reduction of capital 25,000 Total number of banks going into liquidation or reducing capital (other than those consolidating with other national banks 2 under the act of June 3, 1864) 1 2 Aggregate capital reduction 50, 000 Consolidation of national banks under the act of Nov. 7- 1918 2 Capital 1, 025, 000 The foregoing statement shows the aggregate of increased capital for the period of the banks embraced in statement was 7, 794, 000 Against this there was a reduction of capital owing to liquidation (other than for consolidation with other national banks under the act of June2 3, 1864), and reductions of capital of 50.000 Net increases 7, 744, 000 1 Includes an increase in capital of $300,000 incident to a consolidation under act of Nov. 7,1918. 2 Includes a reduction in capital of $25,000 incident to a consolidation under act of Nov. 7, 1918. RULINGS OF THE FEDERAL RESERVE BOARD. Below are published rulings made by the Federal Reserve Board which are believed to be of interest to Federal Reserve Banks and member banks: Eligibility of notes of Federal land bank or joint stock land bank for rediscount. The Federal Reserve Board has heretofore ruled that collateral notes of a Federal land bank secured by farm loan bonds are not eligible for rediscount by a Federal Reserve Bank. The same principles seem to be applicable to the note of a joint stock land bank secured by its own bonds. Under the terms of section 13 of the Federal Reserve Act any note the proceeds of which have been used or are to be used for a commercial, industrial, or agricultural purpose is eligible for rediscount, provided that it otherwise conforms to the terms of the law and the regulations of the Federal Reserve Board. The Board, ever since the establishment of the Federal Reserve System, has consistently adhered to the principle that the question whether or not the proceeds of a particular obligation are used for one of the purposes defined in the law must be determined by the use to which those proceeds are put by the maker of the note. In accordance with this principle the Board has frequently ruled that the note of a bank, a factor, a credit company, or any other such institution is not eligible for rediscount if the proceeds are used to lend to some third party. The fact that the proceeds may ultimately be used by that third party for a commercial, industrial, or agricultural purpose can not affect the character of the original obligation so far as the provisions of the Federal Reserve Act are concerned. Under the terms of section 16 of the Federal Farm Loan Act, joint stock land banks are organized for the purpose of engaging in the business of lending on larm mortgage securities and issuing farm loan bonds. Their business 610 FEDERAL RESERVE BUIALETIN. is therefore clearly a finance business, and paper issued by them for the purpose of procuring funds to lend for agricultural uses is necessarily finance paper and not commercial, industrial, or agricultural paper within the meaning of section 13 of the Federal Reserve Act, even though the ultimate borrower may use the proceeds for one of the purposes specified in the law. Bankers' Acceptances secured by documentary drafts on foreign buyer. Section 13 provides in part that member banks may accept drafts " which grow out of transactions involving the importation or exportation of goods." The scope of this provision is by its terms a broad one and the Board has heretofore ruled that a draft drawn upon a JUNE, 1920. national bank which is secured by a documentary draft drawn by the same drawer upon a foreign buyer is eligible for acceptance by the national bank. It has ruled, however, that no bank which has purchased a foreign documentary draft may refinance itself by drawing a draft on a member bank secured by the documentary draft. If, however, the seller or shipper of goods draws a draft upon the foreign buyer or consignee payable abroad and secured by shipping documents, it is proper for the drawer to finance that shipment by a banker's acceptance secured by that documentary draft. In fact, it appears to the Board that that is the proper way for the transaction to be handled since the accepting bank then has control of the draft and documents out of which its own acceptance is ultimately to be paid. LAW DEPARTMENT. Exercise of trust powers by national banks located in given the Board to grant to any national bank applying for it, "and when not in contravention of State or local law, " Connecticut. the right to act in various enumerated capacities, including The following is an opinion, rendered in that of guardian of an estate, "or in any other fiduciary April, 1920, by Mr. Justice Case for the Su- capacity in which State banks, trust companies, or other preme Court of Connecticut, holding that under corporations which come into competition with national are permitted to act under the laws of the State in the amendment to section 11 (Jc) of the Fed- banks which the national bank is located." It is further proeral Reserve Act, approved September 26,1918, vided that when the State laws "authorize or permit the a State may not withhold from a national exercise of any or all" the enumerated powers by corporabank within its borders the right to exercise tions "which compete with national banks," such a grant a national bank shall not be deemed to contravene the fiduciary powers which competing State cor- to State or local law. (Sec. 9794, par. K, U. S. Comp. Stat, porations are permitted to exercise, and that 1919 Supplement.) it makes no difference whether the discrimi- Before the passage of this amendment, that portion of nation attempted to be made by the State the act which it affects, and only affects by amplifying provisions and making them more certain, had already against national banks takes the form of ari its been upheld in all respects a valid and effective exercise express statutory prohibition or is to be im- of the powers of Congress. (First National Bank of Bay plied from the mere absence of permissive City v. Union Trust Co., 244 U. S.. 416.) After referring to McCulloch v. Maryland, 4 Wheat., 316, and Osborn ?;. legislation. Bank, 9 Wheat., 738, as establishing the principle that KATHERINE HAMILTON ET AL. APPEAL FROM PROBATE. Congress may confer upon national banks the right to exercise business functions of a private nature and subject CASE, /.—In a proceeding brought on her behalf by to State regulation, if these are also incidental to the sucher father as her natural guardian, Katherine Hamilton, cessful discharge of the bank's public functions, the court, of Waterbury, a minor of sufficient age to choose a guardian in the case cited, goes on to say ' 'even although a business under 4864, 4865, General Statutes, applied to the probate be of such a character that it is not inherently considered court for that district to appoint, a guardian of her estate, susceptible of being included by Congress in the powers and made choice therefor of the Manufacturers National conferred on national banks, that rule would cease to Bank, a banking association organized under the laws of apply if by State law State banking corporations, trust the United States and located in Waterbury. The bank companies, or others which by reason of their business are had previously applied for and been granted by the Fed- rivals or quasi rivals of national banks are permitted to eral Reserve Board of the United States a special permit carry on such business. This must be, since the State to act in certain fiduciary capacities under the act of Con- may not by legislation create a condition as to a particular gress more specifically referred to later, and had equipped business which would bring about actual or potential a trust department and otherwise fully complied with the competition with the business of national banks and at law to meet the requirements of its extended business. the same time deny the power of Congress to meet such The probate court found that occasion existed to appoint created condition by legislation appropriate to avoid the a guardian of the minor's estate other than either parent, injury which otherwise would be suffered by the national and that the minor's nominee was in all respects fit and agency" (pp. 425, 426). There is nothing ambiguous or of doubtful meaning in competent for the position, but refused to make the appointment solely on the ground that it had no authority to this. It squarely bases the soundness of such legislation appoint a national bank. Upon appeal to the superior upon the broad right of Congress to protect this "national court, the case has been reserved for our advice upon the agency"—the banks—from a possibly unfair and injurious single question as to whether this conclusion of the court advantage secured by competing State corporations through the discriminating favor of State laws. The right was correct. Under the amended provisions of the act of Congress of the State to withhold from a national bank within its establishing the Federal Reserve Board authority ia borders the enjoyment of any powers conferred by Congress JUNE, 1920. FEDERAL RESERVE BULLETIN. which are coextensive with those given to State corporations exercising the same or similar functions in their chartered activities is expressly denied. It can make no essential difference then whether this State discrimination takes the form of an express statutory prohibition or is to be implied from the mere absence of permissive legislation; the test to be applied is the same in both cases. If State banks or trust companies are accorded powers in the conduct of their business that may appropriately be exercised in connection with the primary purposes of that business, neither State legislation forbidding the exercise of such powers by a national bank nor the absence of legislation expressly sanctioning its exercise of them can affect the right of Congress to confer the same powers upon national banks in the same territory or impair the banks' right to exercise them when so bestowed. It is unnecessary, therefore, to comb the general and special statutes of the State for positive or implied expressions of State policy upon the subject. Both the act of Congress, in its present amended form, and the forerunning judicial expression of its entire constitutionality in the case quoted from, rest the test first and last in the State's treatment of its own subject corporations. Since by the express provision of 3955 of the General Statutes, a State bank or trust company "may act as guardian, conservator, trustee, receiver, executor, or administrator of the estate of any person (but not of the person of any ward)," there can be no question of the right of a national bank in this State, when expressly clothed with that authority under the act of Congress, to exercise any of these enumerated powers. Upon the agreed statement of facts, therefore, the applicant, Katherine Hamilton, was entitled as a matter of right under our decisions to the appointment of the guardian of her choice, the Manufacturers National Bank (Adams's Appeal,38 Conn., 304; White v. Strong, 75Conn., 308, 311), and the superior court is so advised. No costs will be taxed in this court in favor of either party. In this opinion the other judges concurred, WHOLESALE PRICES IN THE UNITED STATES. In continuation of figures shown in the May there are presented below monthly index numbers of wholesale prices for the period July, 1919, to April, 1920, compared with like figures for April of previous years; also for July, 1914, the month immediately preceding the outbreak of the great war. The general index number is that of the United States Bureau of Labor Statistics. In addition there are presented separate numbers for certain particular classes of commodities, in accordance with plans announced in previous issues BULLETIN of the BULLETIN. Quotations for ginghams (Lancaster 6.50 yards to pound), hosiery (men's seamless cashmere), and granulated sugar have been omitted. On the other hand, quotations for yellow pine, surfaced boards, and for news print paper, which had been dropped temporarily, have been secured for the months of March and April, and the commodities were again included in the calculation of the index numbers for the latter month. In order to keep the number of articles included in the 611 construction of the index number up to the maximum, there were also added hosiery (women's silk mercerized, 220 needle), blankets (woolen, 4 to 5 pounds per pair), trousering (cotton warp, worsted filling), and underwear (33 per cent worsted, 16 pounds) in place, respectively, of hosiery (women's combed peeler yarn), blankets (woolen, 5 pounds per pair), trousering (silk decoration), and underwear (women's merino union suits). Quotations for these commodities, as well as for women's dress goods (broadcloth, 9 ounce), were obtained for the months of February, March, and April, and the commodities were included in the calculation of the revised index number for the months of March and April. Index numbers for April are provisional, due to the fact that certain data were not received in time to render them available for use in the calculations. A further increase in wholesale prices is noted for the month of April. The general index number of the Bureau of Labor Statistics for the latter month stands at 266, as compared with 253 for the month of March. All of the three principal groups of commodities show an increase, although to a varying extent. The index number for the group of producers' goods shows the greatest increase, namely, 6.9 per cent, from 246 to 263. Decreases in the prices of several classes of chrome leather, twisted cotton yarns, cotton-seed meal, linseed meal, oleo oil, silver, and news print paper were more than offset by increases in price for an extended list of articles, in particular, bar iron, steel plates, and structural steel, cast-iron pipe, various building materials, such as brick, cement and lime, rope, linseed oil, turpentine, and various chemicals, such as wood alcohol and soda ash, wood pulp, bran, mill feed, sugar (96 degrees), carded mule-spun cotton yarns and worsted yarns, lubricating oil, and gasoline. The index number for the group of consumers' goods shows the smallest rate of increase, namely, 3.9 per cent, from 263 to 273. Decrease was shown in the prices of several commodities, namely, milk, butter (Chicago quotation), eggs, lemons, and raisins, beans, cotton-seed oil, and lard, but were more than offset by increases in the prices of various commodities, among which may be noted, in particular, butter (New York and Philadelphia quotations), rye and wheat flour, cornmeal, and potatoes; various meats, such as fresh beef, veal, bacon, hams, and salt mess pork, lamb, mutton, and poultry; print cloths, wrapping paper, and illuminating oil. The index number for the group of raw materials increased from 247 to 259, or 5.1 per cent. Among the subgroups into which the 612 FEDERAL RESERVE BULLETIN. commodities included under this head are classified, the subgroup of animal products alone shows a decrease from 200 to 196, or 2.2 per cent. While increases in price were noted in the case of hogs, sheep, and poultry, these were more than offset by decreases in price in the case of cattle and silk. While certain of the quotations for the various classes of hides and of wool showed an increase, corresponding decreases were shown by other types of these commodities. The greatest increase, namely, 12.2 per cent, was shown in the index number for the subgroup of mineral products, from 197 to 221. A slight decrease in the price JUNE, 1920. of lead and zinc was more than offset by increases in the prices of bituminous, semibituminous, and anthracite coal and coke, crude petroleum (California quotation), copper and pig iron. An increase of 5.6 per cent, from 348 to 367, was noted in the forest products subgroup, due to increases in the prices of maple and yellow-pine flooring. The increase in the subgroup of farm products from 288 to 304, or 5.7 per cent, was due to increases in the prices of wheat, corn, oats, rye, barley, timothy hay, hops, and cotton, which were not offset by decreases in the prices of tobacco and flaxseed. Index; numbers of wholesale prices in the United States for principal classes of commodities. [Average price for 1913=100.] Raw materials. Year and month. Farm products. Animal products. Forest products. 102 120 114 200 243 246 261 251 240 254 276 288 291 278 288 304 106 95 115 163 194 224 233 235 215 212 212 209 213 206 200 196 97 94 97 105 137 145 166 193 227 234 239 259 273 315 348 367 July, 1914 April, 1915 April, 1916 April, 1917 April, 1918 April, 1919 July, 1919 August, 1919.... September, 1919 October, 1919... November, 1919. December, 191,9. January, 1920... February, 1920.. March, 1920 April, 1920 In order to give a more concrete illustration of actual price movements, there are also presented in the following table monthly actual and relative figures for certain commodities of a basic character, covering the period July, 1919, to April, 1920, compared with like Mineral products. All commodities Producers' Consumers' (Bureau of goods. goods. Labor StaTotal raw tistics index materials. number). 91 91 118 194 171 170 177 180 184 184 183 186 190 194 197 221 99 100 112 171 191 202 214 218 216 220 226 233 239 240 247 259 93 97 138 183 190 186 202 212 212 211 216 228 245 246 246 263 103 101 114 171 195 214 230 241 226 228 236 245 259 256 263 273 100 100 117 173 190 203 219 226 221 222 230 238 248 248 253 266 figures for April of previous years; also for July, 1914, the month immediately preceding the outbreak of the Great War. The actual average monthly prices shown in the table have been abstracted from the records of the United States Bureau of Labor Statistics. Average monthly wholesale prices of commodities. [Average price for 1913=100.1 Corn, No. 3, Chicago. Wheat, No. 1, Cotton, middling, northern spring, New Orleans. Minneapolis. Wheat, No. 2, red winter, Chicago. Year and month. Average price per bushel. July, 1914 April, 1915 April, 1916 April, 1917 April, 1918 April, 1919 July, 1919 August, 1919 September, 1919 October, 1919... November, 1919. December, 1919. January, 1920... February, 1920.. March, 1920 April, 1920 $0.7044 .7438 .7525 1.3906 1.5850 1,5955 1.9075 1.9213 1.5410 1.3888 1. 4875 1.4485 1.4750 1. 4125 1. 5515 1. 6913 Rela- Average tive price per price. pound. 114 121 122 226 258 259 310 312 250 226 242 235 240 229 252 275 $0.1331 .0947 .1188 .1950 .3350 .2670 .3377 .3125 .3078 .3538 .3963 .3990 .4035 .3944 .4060 .4144 Rela- Average tive price per price. bushel. 105 75 94 154 264 210 266 246 242 279 312 314 318 311 320 326 $0.8971 1.5407 1.2169 2.3814 2.1700 2.5890 2.6800 2.5250 2.5350 2.6250 2.8250 3.0300 2.9313 2. 6875 2. 7550 3.0063 Rela- Average tive price per price. bushel. 103 176 139 273 248 296 307 289 290 301 323 347 336 308 315 344 $0.8210 1.5916 1.2153 2.4672 2.1700 2.6300 2. 2580 2.2394 2.2385 2,2394 2.2881 2.4490 2.6338 2.4900 2.5000 2. 7725 Cattle, steers, good to choice, Chicago. Average Rela- price per tive 100 price. pounds. 83 161 123 250 220 267 229 227 227 227 232 248 267 252 253 281 $9.2188 8.0313 9.1188 12.3100 15.1750 18.3250 16.8688 17.6375 16.8050 17. 5938 17.5000 17.0750 15.9375 14.9688 14. 4000 13.9063 Hides, packers, heavy native steers, Chicago. Rela- Average tive price per price. pound. 108 94 107 145 178 215 198 207 198 207 206 201 187 176 169 163 $0. 1938 1875 i .2225 .3050 .2719 .2950 .4860 .5200 .4638 .4820 .4688 .4100 .4000 .4025 .3640 .3613 Relative price. 105 102 121 166 148 160 264 283 252 262 255 223 218 219 198 196 JUNE, 1920. 613 FEDERAL RESERVE BULLETIN. Average monthly wholesale prices of commodities—Continued. [Average price for 1913=100.] Hogs, light, Chicago. Wool, Ohio, J-f grades, scoured. Hemlock, New York. Yellow pine, flooring, New York. Coal, anthracite Coal, bituminous, stove, New York, run of mine, Cincinnati. tidewater. Year and month. July,1914 April 1915 April, 1916. April 1917 April, 1918 April, 1919 July 1919 August, 1919 September, 1919 October, 1919 November, 1919 December 1919 January 1920 February, 1920 March 1920 April,1920 Average price per 100 pounds. Relative price. Average price per pound. Relative price. Average price per M feet. Relative price. Average price per M feet. $8.7563 7.2813 9.5438 15.2750 17.5100 20.3813 22.3875 21.6125 18.2100 14.7250 14.1438 13.6800 15.1250 14.9813 15.5000 15.7125 104 86 113 181 207 241 265 256 215 174 167 162 179 177 183 186 $0.4444 .5571 .6857 1.0000 1.4545 1.0909 1.2364 1.2364 1.2182 1.2634 1.2545 1.2545 1.2364 1.2364 1.2364 1.2000 94 118 146 212 309 232 263 263 259 268 266 266 263 263 263 255 $24.5000 21.5000 24.0000 25.5000 33.5000 36.0000 41.0000 101 89 99 105 138 149 169 43.0000 44.0000 44.0000 48.0000 53.0000 57.0000 57.0000 57.0000 177 182 182 198 219 235 235 235 $42.0000 41.0000 40.0000 43.0000 60.0000 64.0000 73.0000 78.0000 95.0000 100.0000 100.0000 112.0000 112.0000 139.0000 139.0000 160.0000 Coal, Pocahontas, Norfolk. Coke, Connellsville. Copper, ingot, electrolytic, New York. Rela- Average tive price per price. long ton. 94 92 90 96 135 144 164 175 213 224 224 251 251 312 312 359 Lead, pig, desilverized, New York. $4.9726 4.6904 5.2876 5.1916 6. 2606 7.9045 8.1881 8.3145 8.4020 8.4135 8.4273 8.4098 8.4291 8.4118 8.4109 8.4368 Relative price. Average price per short ton. 98 93 104 103 124 156 162 164 166 166 167 166 167 166 166 167 $2.2000 2.2000 2.2000 5.0000 3.6000 4.0000 4.0000 4.0000 4.5000 4.5000 4.1000 4.1000 4.1000 4.1000 4.1000 5.5000 Petroleum,crude, Pennsylvania, at wells. Relative price. 100 100 100 227 164 182 182 182 205 205 186 186 186 186 186 250 Pig iron, basic. Year and month. Average Rela- Average Relaprice per tive price per tive long ton. price. short ton. price. July, 1914 Anril 1915 April 1916 April, 1917 Anril 1918 April 1919 JU]V 1QIQ A u g u s t 1919 S e p t e m b e r 1919 - October, 1919 November 1919 December, 1919 Januarv 1920 Februarv, 1920 March, 1920 April, 1920 . . . $3.0000 2.8500 3.0000 6.5000 4.2440 4.9000 5.1400 100 95 100 217 141 163 171 5.1400 4.6320 4.6320 4.6320 4.6320 4.6320 6.4800 171 154 154 154 154 154 216 Cotton yarns, northern cones, 10/1. $1.8750 1.6250 2.8250 7.2500 6.0000 3.9000 4.0950 4.2188 4.5920 4.8250 5.9375 6.0500 6.0000 6.0000 6.0000 10.5000 77 67 116 297 246 160 168 173 188 198 243 248 246 246 246 430 Leather, sole, hemlock No. 1. Average price per pound. Relative price. Average price per pound. Relative price. Average price per barrel. $0.1340 .1588 .2688 .3400 .2350 .1530 .2150 .2281 .2220 .2172 .2038 .1873 .1931 .1906 .1858 .1919 85 101 171 216 149 97 137 145 141 138 130 119 123 121 118 122 $0.0390 .0420 .0800 .0935 .0698 .0507 .0561 .0579 .0609 .0643 .0676 .0718 .0872 .0881 .0923 .0896 89 95 182 213 159 115 128 132 138 146 154 163 198 200 210 204 $1.7500 1.4000 2.6000 3.0500 4.0000 4.0000 4.0000 4.0000 4.2500 4.2500 4.4375 4.6000 5.0625 5.5125 6.1000 6.1000 Steel billets, Bessemer, Pittsburgh. Steel plates, tank, Pittsburgh. Rela- Average Relative price per tive price. long ton. price. 71 57 106 124 163 163 163 163 173 173 181 188 207 225 249 249 Steel rails, open hearth, Pittsburgh. $13.0000 12.5000 18.1300 38.7500 32.0000 25.7500 25.7500 25.7500 25.7500 25.7500 28.3125 34.6000 37.7500 42.2500 41.6000 42.5000 88 85 123 264 218 175 175 175 175 175 193 235 257 287 283 289 Worsted yarns, 2-32's crossbred. Year and month. July 1914 April 1915 April, 1916 April 1917 April 1918 April, 1919 Julv 1919 August 1919 September, 1919 October 1919 November, 1919 December 1919 January, 1920 Februarv 1920 March, 1920 April, 1920 --- Average price per pound. Relative price. Average price per pound. Relative price. $0.2150 .1650 .2250 .3600 .6162 .4300 .5912 .6130 .5903 .6111 .6648 .6986 .7271 .7465 .7549 .7784 97 75 102 163 278 194 267 277 267 276 300 316 329 337 341 352 $0.3050 .3050 .3600 .5700 .4550 .4900 .5300 .5700 .5700 .5700 .5700 .5700 .5600 .5700 .5700 .5700 108 108 128 202 161 174 188 202 202 202 202 202 199 202 202 202 Average Relative price per long ton. price. Average price per pound. Relative price. 74 78 174 286 184 149 149 149 149 149 160 180 186 214 233 233 $0.0113 .0113 .0325 .0525 .0325 .0265 .0265 .0265 .0253 .0261 .0265 .0265 .0274 .0350 .0365 .0375 76 76 220 355 220 179 179 179 171 176 179 179 185 236 247 253 $19.0000 20.0000 45.0000 73.7500 47.5000 38.5000 38.5000 38.5000 38.5000 38.5000 41.3750 46.4000 48.0000 55.2500 60.0000 60.0000 Average Relative price per long ton. price. $30.0000 30.0000 30.0000 40.0000 57.0000 47.0000 47.0000 47.0000 47.0000 47.0000 47.0000 47.0000 50.7500 54.5000 54.5000 54.5000 100 100 100 133 190 157 157 157 157 157 157 157 169 182 182 182 Average price per pound. $0.6500 .8200 .9500 1.3000 2.1500 1.5000 1.6000 1.6242 1.7500 1.7500 2.2000 2.2000 2.2500 2.2500 2.2000 2.2000 Relative price. 84 106 122 167 277 ,1 193 206 209 225 225 283 283 290 290 283 283 614 JUNE, 1920. FEDERAL RESERVE BULLETIN. Average monthly wholesale prices of commodities—Continued. [Average price for 1913= 100.] Beef, carcass, good native steers, Chicago. Coffee, Rio, No. 7. Flour, wheat, standard patents (1918, standard war), Minneapolis. Average Relaprice per tive pound. price. Average Relaprice per tive price. barrel. Year and month. July, 1914 April, 1915 April, 1916 April, 1917.. April, 1918 April, 1919 July, 1919 August, 1919 September, 1919 October, 1919 November 1919 December, 1919 January 1920 February, 1920 March, 1920... April, 1920 .... . . . . . ... . . Average price per pound. Relative price. $0.1350 .1175 .1375 .1600 .2050 .2450 .2075 .2350 .2275 .2290 .2350 .2350 .2320 .2125 .2050 .2090 104 91 106 124 158 189 160 181 176 177 181 181 179 164 158 161 79 72 85 85 81 152 207 193 149 148 152 136 146 133 135 136 $0.0882 .0806 .0950 .0950 .0903 .1695 .2303 .2150 .1663 .1650 .1697 .1518 .1628 .1478 .1500 .1514 $4.5938 7.7063 6.2188 11.6188 9.9850 12.2150 12.1550 12.0063 11.6200 12.0313 12.9500 14.0250 14.4438 13.5375 13.1650 14.2813 RETAIL TRADE. In the following tables is given a summary of the results obtained during the past few months in districts Nos. 1, 2, 3, 4, 5, 6, 7, 10, and 12, on the regular retail trade index form from representative department stores. In districts Nos. 1, 5, and 12 the data were received in (and averages computed from) actual amounts (dollars). In districts Nos. 2, 3, 4, 5, 6, 7, and 10 the material was received in the form of percentages, the averages for the cities 100 168 136 253 218 266 265 262 254 262 283 306 315 295 287 312 Hams, smoked, Chicago. Illuminating oil, 150°firetest, New York. Average Rela- Average price per tive price per pound. price. gallon. $0.1769 .1438 .1831 .2450 .3075 .3595 .3835 .3838 .3480 .2900 .2859 .2888 .2944 .3056 .3155 .3313 106 87 110 147 185 216 230 231 209 174 172 174 177 184 190 199 Sugar, granulated, New York. Average Relaprice per tive pound. price. Relative price. 97 97 97 97 136 150 166 177 178 178 178 178 182 195 203 211 $0.1200 .1200 .1200 .1200 .1675 .1850 .2050 .2180 .2200 .2200 '.2200 .2200 .2240 .2400 .2500 .2600 $0.0420 .0578 .0706 .0815 .0730 .0882 .0882 .0882 .0882 .0882 .0882 .1085 .1537 .1495 .1372 98 135 165 191 171 207 207 207 207 207 207 254 360 350 321 and districts computed from such percentages being weighted according to volume of business done during the calendar year 1919. For the month of April, the tables are based on reports from 16 stores in district No. 1, 9 in district No. 2, 15 in district No. 3, 15 in district No. 4, 9 in district No. 5, 7 in district No. 6, 9 in district No. 7, 7 in district No. 10, and 31 in district No. 12. For the earlier months the number of stores varied somewhat, due to the inclusion of new stores from time to time in the reporting list. Condition of retail trade in Federal Reserve districts Nos. 1, 2, 3, 4, 5, 6, 7, 10, and 12. [Percentage of increase.] Comparison of net sales with those of corresponding period previous year. District and city. District No. 1: Boston Outside 1919.' October, 1919. 22.4 30.9 52.0 November, 1919. District . District No. 2: New York City and Brooklyn. Outside. 43.4 49.0 December, 1919. Janu- Feb- March, April, ary, ruary, Au1920. 1920. 1920. 1920. gust, 1919. 42.3 41.9 33.2 43.5 15.4 36.1 38.9 29.4 16.8 26.0 42.1 34.8 18.3 37.5 18.5 49.2 54.6 29.9 66.6 50.4 15.0 22.4 64.3 22.2 17.6 28.6 9.4 District District District District District District District No. 3 No. 4. No. 5 No. 6. No. 7 No. 10. District No. 12: Los Angeles San Francisco... Oakland Sacramento Seattle Spokane Salt Lake City.. District Jan. 1,1920, to close of— July 1,1919, to close of— September, 1919. Au- 51.7 i September, 1919. October, 1919. 30.8 33.0 24.9 41.6 30.7 36.4 26.1 33.1 37.2 32.5 31.6 27.5 49.7 39.8 59.3 38.1 35.0 33.6 15.8 57.0 34.9 37.5 45.5 23.1 27.4 72.1 24.6 12. 4~ 18.4 23 23.4 33 3 19.6 20.3 36.0 8.6 26.2 38.2 14.6 29.9 62.3 26.9 20.5 33.6 9.3 22.0 43.5 24.9 44.0 43.6 50.7 77.3 54.6 29.8 50.7 28.6 77.1 32.3 83.8 53.5 41.4 54.2 23.9 36.2 23.8 51.6 26.9 27.4 22.6 22.4 23.6 11.5 58.4 35.4 31.0 65.1 19.2 19.8 10.5 43.6 28.5 14.9 33.9 4.3 10.9 7.1 58.3 30.0 20.1 15.4 24.4 52.9 33.1 22.4 22.4 28.3 33.4 88.7 45.2 30.3 36.6 21.0 46.4 42.7 23.9 40.6 82.0 46.1 50.7 51.7 31.1 37.8 13.8 31.0 68.3 40.9 25.1 32.5 27.6 23.2 30.3 DeFeb- March, April, cem- ruary, ber, 1920. 1920. 1920. 1919. 36.3 38.5 19.4 110.6 92.3 68.5 69.2 50.6 176.0 44.8 48.8 31.3 20.7 16.7 23.7 November, 1919. 25.8 69.9 46.5 32.3 35.7 31.6 99.9 24.8 77.2 46.3 31.9 35.7 29.5 70.4 32.0 77.3 47.1 31.9 39.5 29.3 72.0 29.2 68.3 58.9 34.8 36.6 23.0 30.1 18.1 61.2 39.7 32.3 60.9 21.8 26.8 15.1 56.1 36.6 27.9 47.5 16.2 23.1 12.8 34.4 46.9 47.5 47.0 46.5 41.0 36.9 JUNE, 615 FEDERAL RESERVE BULLETIN. 1920. Condition of retail trade in Federal Reserve districts Nos. 1,2,3, 4, 5, 6, 7, 10, and 12—Continued. Stocks at end of month compared with— Previous month. Same month previous year. District and city. No- De- Janu- FebruSep- Octo- No- De- Janu- FebruAu- Sep- Octo- vemAu- temMarch, April, cemApril, gust, ber, ber, cemgust, tember, vemary, ary, March, ber, ber, ber, ber, arv, ary, 1920. 1920. 1920. ber, 1919. 1920. 1919. 1919. 1919. 1919. 1919. 1920. 1920. 1919. 1919. 1919. 1919. 1920. 1920. District No. 1: 6.4 11.4 Boston... . Outside District District No. 2: New York City and 12.9 Brooklyn 7.1 Outside District District No. 3 District No. 4 . . District No. 5 District No. 6 District No. 7 District No. 10 District No. 12: Los Angeles . i .6 6.3 San Francisco i .5 10.6 17.5 i .5 Oakland i 20.3 i 10.7 Sacramento Seattle 17.8 7.2 Spokane District .9 7.0 4.9 25.4 24.9 29.7 28.4 38.1 37.5 42.3 44.9 45.2 16.3 43.2 25.2 29.6 37.9 42.8 44.7 36.4 44.0 49.6 69.6 60.6 53.8 51.6 68.6 53.6 9.9 16.4 48.6 40.9 5L8 13.9 19.5 31.0 44.0 15.5 26.5 32.7 45.9 1.4 4.9 9.2 10.6 i 4.6 .3 15.2 15.3 31.4 44.5 13.8 13.2 25.4 11.9 17.5 28.5 38.0 July 1,1919, to end of— Jan., 1920. District 16.1 15.1 7.8 10.2 3.7 11.9 8.4 37.9 9.3 - .3 1.4 25.8 - .4 13.4 7.0 45.1 8.4 42.7 55.8 12.1 12.7 18.6 i 10.4 15.2 64.9 60.7 34.4 29.4 55.5 39.0 5.5 15.6 6.3 18.7 22.7 4.2 13.2 12.6 4.8 13.2 5.6 1.7 U0.9 9.7 9.7 2.2 U1.1 4.7 5.4 .2 19.7 18.4 3.7 16.1 6.5 i 2.9 U8.9 12.0 3.4 115.6 9.4 48.4 58.0 56.5 12.6 10.3 6.5 Feb., 1920. Mar., Apr., 1920. 1920. 320.8 382.2 509.5 389.8 229.8 402.5 320.5 464.7 382.1 306.0 385.4 389.9 343.4 336.9 405.6 384.7 403.1 372.3 392 8 1.3 U3.3 383.4 287.7 337 6 481.7 418.6 547.1 468.2 411.6 422.4 459.5 495.6 485.6 460.5 442.8 453.0 564.7 558.3 559.1 400.7 355.9 339.3 459.0 422.3 432.0 462.4 470.7 459.3 463.1 2.6 11.8 10.9 14.0 5.4 12.3 7.3 11.6 .9 18.1 3.0 4.7 10.5 7.8 3.1 3.7 7.8 2.4 6.1 .5 . 6.5 3.7 14.9 27.9 -40.2 9.6 0 Percentage of outstanding orders at end of month to total purchases during previous calendar year. Aug., Sept., Oct., Nov., Dec, Jan., Feb., Mar., Apr.* 1919. 1919. 1919. 1919. 1919. 1920. 1920. 1920. 1920. 21.5 18.1 19.4 24.8 13.7 26.5 16.7 19.6 19.7 18.8 18.6 15.8 15.5 23.1 24.0 19.6 18.7 15.7 36.3 22.8 22.9 18.8 20.3 17.6 21.8 19.0 18.2 21.0 27.9 18.6 24.8 19.4 23.5 34.8 18.1 29 7 20 9 31.8 14.6 20.1 31.2 18.0 33.3 18.2 37.1 31.9 33.9 31.0 39.0 27.7 22.1 32.2 18.4 20.0 34.5 37.2 1Q 8 11 4 8 2 22.6 40.6 17.6 34.7 17.2 31.7 27.2 21.6 405.2 32.8 26.4 402.0 380.0 347.0 386.3 369 1 439 0 379.6 408.2 415.6 : : : : : : : District No. 4 District No. 5 District No. 6 District No. 7 ' District No. 10.... Spokane Salt Lake City.. 4.0 2.8 58.3 62.2 35.2 61.8 53.8 63.3 District San Francisco.. Oakland Sacramento Seattle 9.9 11.9 42.1 59.4 27.7 37.1 53.7 35.0 360.7 413.9 District No. 3 District No. 12: Los Angeles 7.4 9.7 Jan. 1,1920, to end of— Aug., Sept., Oct., Nov., Dec, 1919. 1919. 1919. 1919. 1919. District No. 1: Boston 277.0 461.9 367.4 Outside District District No. 2: New York City and Brooklyn. 573.4 504.6 Outside 10.9 15.2 13.8 13.7 24.3 25.7 56.1 63.9 53.4 60.3 41.1 29.9 72.5 39.9 38-9 43.3 Percentage of average stocks at end of each month to average monthly sales forsame period. District and city. .1 7.5 5.3 332.5 272 1 424.3 403.1 600.2 422.7 405.2 490.6 418.3 477.5 581.6 468.3 390.7 494.9 492.3 610.7 585.2 27.9 34.1 32.7 28.1 45.1 25.8 378.0 411.5 427.1 665.0 508.8 755.9 542.6 527.9 605.8 528.8 29.2 28.3 25.1 429.0 515.3 34.3 29.1 29.6 422.6 534.7 i Decrease. 456.0 46*5 53.5 29.5 29.2 48.1 28.1 32.3 28.0 616 FEDERAL RESERVE BULLETIN. In district No. 11 inquiries made of several stores in a number of lines brought the following average results: April, 1920, retail trade, compared with March, 1920, and April, 1919. [+Increase. —Decrease.] Compared with— March, 1920 April, 1919 March, 1920 April, 1919 March, 1920 April, 1919 March, 1920 April, 1919 March, 1920 April, 1919 March, 1920 April, 1919 Groceries Furniture Shoes Clothing Dry goods Hardware Sales. Selling price. Per cent. Per cent. +6 +25 Same. + 5 +64 +39 -11 Same. +10 +15 -10 Same. +35 +23 + 3 Same. +49 +31 +11 +11 +48 +40 Stock at end of month. Per cent. + 6 +24 + 5 + 11 + 9 +62 + 4 +24 + 8 +27 JUNE, 1920. WHOLESALE PRICES ABROAD. Tables are presented below showing the monthly index numbers of wholesale prices of some of the leading countries of the world computed on the basis of prices in 1913 = 100. In all cases except that of the United States the original basis upon which the index numbers have been computed has been shifted to the 1913 base. The monthly and yearlyindex numbers are, therefore, only approximate. These index numbers are constructed by the various foreign statistical offices according to methods described in the January BULLETIN. The latest figures are subject to correction. Index numbers of wholesale prices (all commodities). INTERNATIONAL PRICE INDEX. [1913=100.] In the following table are presented wholesale price indexes for groups of commodities in United States markets, computed according to methods described in the May BULLETIN. Similar index numbers are being constructed at present for England, France, and Italy. Important corrections have been made in the numbers since their publication in the May United States; Bureau of Labor Statistics (328 quotations). BULLETIN. 1 United Kingdom; Statist (45 commodities). France; Bulletin dela Statistique G&ie*rale (45 commodities). Japan; Austra- Canlia; Com- ada; Bank Italy; Swe- of Ja- monDeProf. den; wealth partBachi Svensk pan Bureau ment for (40 HanTo- Census of La* comdels kyo and Sta- bor modi- tid(56 tistics (272 ties). ning. com(92 com- quotamodi- modities). ties). tions). Index numbers—United States. [Average prices 1913= 100.] Date. 1913. January February... March April Mav June July Raw ProGoods Im- ExConCon- mateducers' sumers' A l l . pro- port- port- sumed. rials. goods. goods. duced. ed. ed. September.. October November.. December... 100 100 100 101 100 100 100 100 101 101 99 98 105 104 103 101 100 99 99 101 100 98 98 93 100 100 99 99 99 100 99 99 102 103 102 99 100 100 101 101 100 100 100 102 101 99 98 96 99 99 100 101 100 100 98 101 102 102 100 98 105 105 105 103 102 101 101 100 98 96 95 91 99 99 99 99 99 101 102 101 101 101 101 99 100 100 101 101 100 100 100 101 101 100 99 97 1919. January February... March . April May June July August September.. October November.. December... 197 191 193 198 204 204 214 221 215 215 222 224 168 168 163 165 172 180 176 174 170 174 179 203 200 193 194 194 211 214 225 219 211 226 242 242 195 190 191 197 202 202 211 • 218 212 212 217 225 195 190 196 201 209 208 217 217 211 213 220 223 193 190 186 182 185 193 201 207 204 208 213 221 196 188 188 197 202 202 211 224 216 214 219 225 195 189 1Q1 196 202 ?03 212 218 212 212 219 223 1920. January February... March April 237 238 243 265 212 216 218 242 250 246 252 263 241 242 247 244 234 232 236 247 264 274 242 240 241 257 237 237 ?43 263 235 262 1 In publication, an error was made in the table of weights in classifying three producers' goods (sulphuric acid, acetate of lime, and sulphate of ammonia) under consumers' goods (top of p. 501, BULLETIN for May). The unit of measure for burlap (under "goods imported," p. 501, and under "goods consumed," p. 502) should be yard instead of pound and the weight should be 701,000 instead of 460,000. The grade for nitrate of soda is 95 per cent instead of 90 per cent. The weight for gasoline (under "goods consumed") should be 1,094,000 instead of 957,000 and the weight for kerosene (in the same group) should be 957,000 instead of 1,094,000. Specifications for cotton cloth should read yards per pound instead of pounds per piece. 1913 1914 1915 1916 1917 1918 100 100 101 124 174 197 100 101 126 159 206 226 100 102 140 187 262 339 100 95 133 202 299 413 100 116 145 185 244 339 100 95 97 117 149 197 UOO 141 132 2 155 170 100 101 110 135 177 206 1919. January... February . March April May,. . June July August September October... November December. 203 197 201 203 207 207 219 226 221 223 230 238 224 220 217 217 229 235 243 250 253 264 272 276 348 340 337 332 325 329 349 347 360 382 405 417 324 320 324 329 336 356 359 368 370 384 435 455 369 358 354 339 330 324 320 321 319 307 308 317 214 213 206 207 215 228 247 251 257 271 280 288 172 168 169 171 172 173 176 182 185 200 199 197 212 207 205 206 210 210 218 223 223 222 227 240 1920. January... February. March April 248 249 253 266 288 306 307 313 487 522 554 584 504 556 619 679 319 342 354 354 301 313 321 300 203 206 209 248 254 258 261 i J u l y , 1914=100. 2 Last six months of 1917. Prices continued to rise in April in all countries for which we have index numbers with the exception of Japan. As a result of the break in prices there early in April, the index number shows a decline of 6.5 per cent for the month. In the United States and England the decline in certain textiles and minerals was more than compensated for by the rise in food and, in the case of the United States, fuel prices. In Sweden food, textiles, and hides and leather declined in price, but coal, metals, and oils continued to rise. In Canada the rise in prices was general but greatest in the metal lines. ENGLAND. Toward the end of April and during the first weeks of May, the effect of the contraction policy of the Bank of England began to be clearly reflected in manufacturing and trading lines. Prices receded in the textile, leather, and certain of the metal trades, but not in the coal or iron industries, where shortage of supplies continued to keep prices up. The export trade of the country increased during the month and, although production figures show no improvement, this was apparently due to holidays early in the month, rather than to strikes or lack of orders. The wholesale price index published by the Statist shows an increase of 6 points during April as compared with 1 point in March. Group index numbers— United Kingdom, Statist. [1913-100.] Date. 617 FEDERAL. RESERVE BULLETIN. JUNE, 1920. Vege- Ani- Sugar, Food- Miner- Tex- Sun- Mate, table mal coffee, stuffs. als. tiles. dries. rials. foods. foods. tea. England have declined, and the note issue has increased. A statement of the condition of the Bank of England may be found in the " Review of the month" in this issue of the BULLETIN. Production of coal and of iron and steel was considerably below the average of March, the decline being chiefly due to the holidays early in the month. The following table gives the monthly average production of pig iron and crude steel for 1913, the first four months of 1919, and the corresponding months of 1920. [Thousands of metric tons.] Pig iron. Ingots and castings. 1913 (monthly average) January February March April January February March April 1913 1914 1915 1916 1917 1918 100 110 155 193 252 248 100 100 125 152 192 210 100 107 130 161 212 238 100 105 137 169 218 229 100 90 109 140 153 167 100 97 111 152 228 265 100 105 131 163 213 243 100 98 119 153 198 225 1919. January February... March April... Mav June. July August September.. October November.. December... 249 250 240 243 244 246 244 254 258 260 266 269 226 226 205 206 208 208 208 208 208 226 226 228 221 221 238 22S 236 243 275 318 327 322 331 335 234 235 224 224 226 229 231 242 244 253 258 260 159 156 154 154 177 182 202 206 206 222 226 234 246 242 235 239 253 258 256 272 286 305 325 334 246 235 246 243 258 271 284 283 279 284 292 296 218 Week ending— March 6 212 213 13 213 20 230 27 239 250 April 3 254 10 257 17 270 280 24 286 May 1 1920. January February March April 274 297 345 346 230 237 237 265 356 415 394 392 265 286 300 315 256 267 263 263 343 362 360 354 312 329 319 321 302 318 312 311 1919. 672 636 702 730 746 770 676 656 687 655 766 811 825 779 1920. 1 Crude steel. T h e w e e k l y coal p r o d u c t i o n d u r i n g a n d April w a s as follows: March Thou- sands of tons. 4, 852 4, 901 4, 873 4, 879 3, 980 3,338 4, 833 4, 990 43 565 The large domestic and foreign demand for coal and iron and steel products continued to be the dominant factors in commodity markets during April. As was the case in March, comparatively little coal was exported because of Government regulations. Pig iron was likewise in especially heavy demand from abroad, but little available for export. The serious shortage of rail and shipping tonnage made the question of deliveries a matter of primary importance. Judging from trade reports, one would conclude that coastal shipping was improving, but that rail transportation was exceedingly congested. The accompanying table shows that the serious dock congestion of earlier months had considerably improved by April. On April 19, the Chancellor of the Exchequer brought in the budget for the year April 1, 1920, to March 31, 1921. He estimated the revenue for the period as £ 1,418 million, the expenditures £1,184 million, leaving a balance of £234 million available for debt reduction. After various sinking funds have been provided for, about £70 million will remain for the reduction of the floating debt. The proceeds of a new issue of 5-15 year Treasury bonds likewise will be used for the purpose of floating debt reduction. The most important change in the taxation policy of the Government is the increase in the excess profits duty from 40 to 60 per cent. Average number of vessels kept waiting for berths each month. Following the increase in the rate of interest on Treasury bills on April 14, and the subseLondon. Liverpool. quent raising of the discount rate at the Bank 1920. of England, subscriptions to Treasury bills have January 25 materially increased, with the result that bank February 28 March 13 advances to the Government have declined. April 11 At the same time deposits with the Bank of 618 FEDERAL RESERVE BULLETIN. Although prices in general in the iron and steel industry remained unchanged, there was such uncertainty as to future prices that contracts were made upon the basis of prices ruling at the time of delivery. On May 5 wroughtiron and finished-steel products were advanced in price. The other leading metals, such as copper, tin, zinc, and lead declined in price during the month. Apparently manufacturers were well supplied with the raw material, and there was little buying for stock at existing prices. The raw-cotton market declined during April, and toward the end of the month the yarn and piece goods markets began to reflect the same downward tendency. Spinners and weavers were entirely occupied, however, with old orders. In the woolen industry there were much the same conditions. The raw-wool auctions held in the middle of April established prices at a level appreciably lower than during the preceding month, but top makers, spinners, and weavers were so well booked for orders that prices in these lines were not much influenced by the decline. During May both the raw-wool and the raw-cotton markets showed further reductions and cancellation of orders was reported in the manufacturing lines. The exchange situation caused difficulties in the export trade. The rise in the index number for foods is due to increases in certain meats, wheat, bread, potatoes, and sugar. Barley, oats, and rye declined. Government restrictions on the sale of home-produced pigs and pork products, including bacon, ham, and lard, were removed on March 31 and April 5. In spite of business uncertainty in various commodity lines, employment is reported to have been good throughout the month. The returns from trade-union members, published by the Labor Gazette, show less unemployment in March than at any time since the war. Employment of unskilled workers is reported by the board of trade to have been good throughout the first quarter of the year, although the showing would probably not be as good as in the case of the trade unions. Trade-union (membership, 1,567,170) unemployment. End of— January.. February... March 1918 1919 1920 Per cent. Per cent. Per cent. 2.4 1.0 2.9 2.8 1.6 .9 1.1 2.9 1.2 As regards foreign trade in April, the value of both exports and imports declined. According to a report of the board of trade, exports for the first quarter of 1920, when valued at the JUNE, 1920. prices of the first quarter of 1913, amounted to 74 per cent of those in 1913, while imports (exclusive of reexports) amounted to 93 per cent of imports in the earlier year. Reexports for the first quarter of 1920, when corrected in the same fashion, show a 10 per cent increase over the corresponding months in 1913. Although the showing in the case of exports is not as favorable as in the case of reexports, when compared with conditions in 1919, the sum of the two shows very appreciable improvement. Value of exports (including reexports) of the United Kingdom. [In millions of dollars.] 1919 January— February.. March April May June July August September. October November. December.. 253 253 302 350 369 372 375 438 400 480 523 570 | | 1920 639 528 636 616 FRANCE. Prices continued to rise in France during April, chiefly because of the shortage of essential commodities, and the unsettled political and financial condition of the country. The uncertainty caused by these factors was reflected in the high rates of exchange which prevailed throughout April. The peak was reached, however, on the 14th, when the dollar was quoted at 17 and the pound sterling at 67 francs. By the last of the month the pound had fallen to 63 and the dollar to 16 irancs, and on May 31 the rates were 13 francs to the dollar and 50 francs to the pound. On the 8th of April the Bank of France raised the official discount rate from 5 to 6 per cent. From the last of March until the last of April there was a slight gain (2 million francs) in the gold reserve of the bank, a decrease of 133 million francs in deposits other than Government deposits, and an increase of 119 million francs in note circulation. The Chamber of Deputies finished its work on the 1920 budget and adjourned the 1st of May, leaving the new tax proposals in the hands of the Senate. The proposal for a tax on increases in wealth realized during the war was vetoed, but the excess profits tax was made effective until June 30, 1920. As it was finally drawn up by the chamber, the budget provided for almost eight and a half billion francs of new taxes, divided as follows: JUNE, 1920. 619 FEDERAL RESERVE BULLETIN. In millions of francs. Increased duties on successions, real estate transfers, etc 431 Increased duties on spirits, high grade wines, amusements, playing cards, sugar, coffee, cocoa, chocolate, and chicory 593 Increases in the taxes on candles, benzols, electricity 80 Supplementary taxes on registration and realty 250 Increases in the taxes on wines, cider, beer, and mineral waters 692 Increased income taxes 1, 386 Tax of 1 per cent on business turnovers, and a modified luxury tax of 10 per cent 5, 000 Total 8,432 Since the Senate's impatience over the delay in dealing with the budget was the chief factor in forcing its consideration in the Chamber of Deputies at this time, it seems probable that immediate action on the budget will be taken by the Senate. Meanwhile, the financial condition of the Government is gradually improving, because of the large monthly receipts from indirect taxes and Government monopolies. Receipts for March totaled 859 million francs, 263 million more than the budget estimate, and the April receipts were 98 million francs larger than those for March. Group index numbers—France. [Bulletin de la Statisque Generate.] 15 per cent within the month, that of raw cotton 16 per cent. Silk also continued to rise in price, although not so markedly as cotton and wool. Reports from Lyon indicate that the silk crop this year will be larger than last year's. The only commodity groups in which prices show a downward tendency are "sugar, coffee, and cocoa" and "vegetable foods/ ; which declined 10 points and 4 points, respectively. In April, 1919, there was an even more pronounced drop in the prices of "vegetable foods" (44 points), although the index for sugar, coffee, and cocoa did not change, partly because sugar and coffee prices were regulated by the Government at that time. The prospect for lower food prices in the fall has seemed brighter since the publication of the following crop report by the Ministry of Agriculture the last oi April. Crop conditions. [100= very good; 80=good; 60=fairly good: 50= passable.] 1919 76 73 77 76 78 76 77 78 77 Winter wheat Meslin Rye Winter barley Winter oats Cultivated meadows. Temporary meadows. Green forage c r o p s . . . Natural meadows [1913—100. J Date. Animal food. Vege- Sugar, coffe, table and foods. cocoa. MateFoods Min- Tex- Sun- rials (20). erals. tiles. dries. (25). 1913.. 1914.. 1915.. 1916.. 1917.. 1918. 100 103 126 162 215 286 100 103 126 170 243 298 100 106 151 164 201 231 100 104 131 167 225 281 100 98 164 232 271 283 100 109 132 180 303 460 100 99 145 199 302 420 100 101 145 206 291 387 1919. January— February.. March April May June July August September. October November. December. 337 343 439 436 397 381 372 360 396 402 425 432 321 321 277 277 275 268 336 309 308 337 351 380 230 236 236 236 237 255 257 263 264 268 270 278 313 316 337 336 319 313 338 323 334 353 369 375 271 243 246 243 231 236 267 273 279 295 323 357 416 399 322 335 346 372 406 434 476 554 620 649 427 420 404 387 390 398 394 398 402 403 415 419 376 360 337 330 330 344 358 367 381 405 435 458 1920. January February.. March April 452 484 500 522 432 474 516 512 419 436 439 429 440 474 413 ! 787 434 | 828 459 884 952 465 503 548 587 525 558 600 506 ! | | ! i Iron and steel prices did not advance in April beyond the high levels established in March, but an increase of 20 per cent in the price of pig iron, 15 per cent in the price of semifinished products, and 14 per cent in the price of billets was announced for the 1st of May. The coal shortage continued to be one of the most serious factors in the industrial situation, although an arrangement was made early in A.pril by which France is to receive from Belgium 100,000 tons of coal a month for three months in return for French iron ore, phosphate of lime, and salts of sodium. It is estimated that the strike in the Pas de Calais district from March 8 to April 2 cost the country 630,000 tons of coal. When it is remembered that the coal supply in December was insufficient for the country's needs, the following figures are doubly significant. Amounts of coal available in France—production and importation. [In metric tons.] According to the index number of the Bulletin de la Statistique Generale commodity prices in France rose 30 points during April. The most conspicuous increases occurred in the cases of cotton, wool, and copper. The prices of leading grades of copper and of raw wool rose December, 1919 January, 1920 February March April 1-10 l i Revised figure. 4,109, 372 3, 991,486 3,944,023 3, 778,102 982, 796 620 JUNE, 1920. FEDERAL RESERVE BULLETIN. The Government increased the sale price of coal and coke on May 1, giving as its reason the recent rise in the price of coal and coke imported from England. The most recent foreign trade figures for France show a continuation of the improvement begun in February. They are as follows: Group index numbers—Sweden, Svensh Handelstidning. [1913=100.] •3* Date. French foreign trade. [In millions of dollars.] First 3 months, 1919. First 3 months, 1920. IMPORTS. Food Raw materials Manufactured articles Total , 350 520 354 398 733 367 1,224 1,498 23 32 151 22 67 171 389 26 228 653 EXPORTS. Food Raw materials Manufactured articles Parcel post Total Both imports and exports for the first three months of 1920 are larger than for the corresponding period of 1919, but the increase in exports is $151,000,000 greater than the increase in imports—a sign that, despite all its handicaps, French industry is gradually recovering. The prospect of larger crops this summer has raised the hope that imports may be further reduced by decreasing the use of foreign wheat. 1913-14 19141 1915 1916 1917 1918 100 123 177 266 551 856 1919. January February March April May June July August September October November December 810 784 814 769 733 746 732 795 893 893 840 840 170 204 204 1920. January February March April 864 936 960 1,008 204 226 275 275 284 1 Average for six months ending Dec. 31, 1914. Group index numbers— United States, fiureau of Labor Statistics. [1913=100.] S Date. Group index numbers—Italy. r Prof. Bachi. [1913=100.] Cereals and meats. Other Minerals food- * Textiles. and stuffs. metals. Other goods 1913 1914 1915 1916 1917 1918 100 102 132 156 215 312 100 84 93 135 171 229 100 96 113 184 326 475 100 100 207 380 596 752 100 96 133 197 266 391 1919. January February... March April May June July August September.. October November.. December.. 304 305 292 294 293 320 334 332 319 326 328 338 300 307 312 330 336 343 331 351 354 364 371 373 330 328 331 333 375 381 401 423 430 500 634 658 295 295 346 354 360 419 423 424 442 459 568 584 422 384 362 349 340 336 342 341 342 341 351 405 1920. January February... March April 363 365 381 395 396 399 418 488 777 840 962 1,064 671 857 996 1,076 418 443 100 111 120 149 212 535 100 1913. 1914. 1915. 1916. 1917. 1918. 100 117 153 192 1919. January February March April May June July August September October November December 212 208 217 216 213 212 221 225 217 220 220 220 1920. January. February. March April 227 227 238 JUNE, 1920. 621 FEDERAL RESERVE BULLETIN. Group index numbers—Canadian Department of Labor.1 [1913=100.] Group index numbers—Australian Commonwealth—Bureau of Census and Statistics. [July, 1914=100.] 100 100 105 119 149 168 100 99 93 130 233 214 100 104 121 136 180 213 198 192 199 217 231 238 240 243 232 232 240 251 191 191 196 209 213 213 216 215 201 180 175 182 191 178 171 184 181 179 186 189 193 204 221 230 206 188 189 198' 209 221 200 210 195 178 240 240 223 218 219 213 213 215 218 224 227 228 230 232 268 275 195 195 198 200 228 216 206 196 265 290 295 316 245 251 254 264 1919. January February... March April May June July August September.. October...,. November.. December... 1920, January February... March April 291 Build- Fuel Hides, ing ma- and leather, Metals. Implelightterials, ments. etc. lumber. ing. Date. 100 102 114 148 306 316 321 322 Drugs and chemicals. 100 100 97 100 118 147 100 94 92 113 163 188 100 106 160 222 236 250 June July August September.. October November.. December... 171 162 162 166 202 211 235 260 256 252 252 231 204 189 172 162 162 161 166 171 171 165 171 181 229 229 229 223 223 226 | 226 228 231 225 232 232 154 155 156 153 153 158 168 170 183 188 194 224 209 202 199 206 192 194 194 199 200 201 201 209 240 233 212 210 208 197 195 196 197 198 181 190 1920. January February... March. April 237 244 222 239 191 199 210 297 235 231 237 237 232 241 268 212 215 215 245 191 Unimportant groups omitted. 1 100 117 154 100 93 131 100 202 113 100 127 124 100 110 127 100 150 155 100 116 136 100 149 172 201 214 219 217 212 212 198 197 186 206 220 233 105 107 109 113 115 112 120 118 113 114 115 116 130 181 132 132 131 132 147 152 160 157 161 152 176 190 190 201 201 204 217 231 243 247 262 260 1918. January February... March April May June July August September.. October November.. December... 213 216 216 216 219 220 221 223 223 223 223 224 243 237 246 243 231 233 225 239 241 231 207 212 119 119 123 126 138 136 136 136 136 142 157 154 114 116 119 121 129 127 125 122 118 116 118 127 133 134 132 139 137 136 141 141 141 140 139 140 154 153 156 152 145 147 146 141 143 149 140 137 205 207 211 216 260 259 264 266 262 262 262 266 269 318 328 328 300 321 346 336 327 319 300 292 1919. January February... March April May June July August September.. October November.. December-.. 218 204 200 195 195 194 186 182 182 186 184 186 194 184 185 197 200 214 226 229 225 243 254 259 165 166 161 162 162 160 168 190 200 236 238 224 126 142 129 141 136 142 136 142 140 143 140 144 141 148 135 150 138 149 141 152 142 151 142 156 137 132 147 156 148 150 148 145 152 154 132 132 265 264 261 248 257 250 243 249 259 271 278 281 313 314 309 290 268 273 277 277 263 272 267 266 1920. January February... March 189 192 205 273 283 281 227 226 226 143 149 162 156 161 160 147 149 126 282 287 298 268 272 293 July, 1914... 281 1915 282 1916 284 1917. 277 274 July 278 August 277 September.. 282 October November.. December... 100 101 106 128 174 213 1 S £b 273 100 96 128 167 217 229 1919, January February... March April May © Date. •201 100 105 110 143 168 169 1913 1914 1915 1916 1917 1918 € Bui 100 107 104 121 160 195 luce. 100 114 136 142 206 231 Textiles. ricultu 1913 1914 1915 1916 1917 1918 Other foods. leather, etc. Date. Dairy Fruits and prod- vegeucts. tables. 194 201 tals anid coal. AniGrains mals and and fodder. meats. o ft 1 1 fl be n3 DISCOUNT AND INTEREST RATES. In the following* tables are presented actual discount and interest rates prevailing during the periods ending April 15 and May 15, 1920, in the various cities in which the several Federal Reserve Banks and their branches are located. A complete description of the several types of paper for which quotations are given will be found in the September, 1918, and October, 1918, FEDERAL RESERVE BULLETINS. Quotations for new types of paper will be added from time to time as deemed of interest. During the period under review a further continuance of the upward movement in interest rates noted for some months past is remarked for all types of paper. The increase is noted in the great majority of centers, and applies equally in the high, low, and customary rates. Present rates continue higher at almost all centers than rates during the same period of 1919. Comparison with rates prevailing during the 30-day period ending May 15, 1919, shows that, while in some cases rates are unchanged, in the great majority present rates continue higher. Discount and interest rates prevailing in various centers. DURING 30-DAY P E R I O D E N D I N G A P R . 15, 1920. Prime commercial paper. District. Bankers' acceptances, 60 to 90 days. Collateral loans—stock exchange or other current. Cattle loans. Secured by warehouse receipts, etc. H. L. C. H. L. C. City. Boston New Yorki Buffalo Philadelphia.. No.3.. Cleveland No.4.. Pittsburgh Cincinnati Richmond No. 5.Baltimore No. 6.. Atlanta Birmingham.. Jacksonville... New Orleans.. Nashville No. 7-- Chicago Detroit St. Louis No. 8.. Louisville Memphis Little R o c k . . . No. 9... Minneapolis... No. 10. Kansas City... Omaha Denver No. 11.. Dallas El Paso Houston No. 12.. San Francisco. Portland Seattle Spokane Salt Lake City No.l-. No.2.. 6 7 6 1 8 8 8 8 6 61.... 7 8 6 8 6 8 6 8 6 8 8 1\ 6 1 Rates for demand paper secured by prime bankers' acceptances, high 7, low 54, customary 54-6. 6-7 7 64 8 8 64 6 6 6 7 6 6 6 7 6 6-7 7 7 6 64-8 6 6 64--.- 6 6 6 6 6 6 7 8 61 64 6 6-7 8 8 6 64 6 6| 8 64 6i Ordinary loans to customers secured by Liberty bonds and certificates of indebtedness. L. C. 6 54 54 6 6 6 54 6 6 6 4| 6 5 6-7 6 8 54 6-7 6 6 5 54-7 6 6 6 6 6 7 6 6 54 6 6 64 6 6-7 O to to DURING 30-DAY P E R I O D ENDING MAY 15, 1920. a Ordinary loans to Prime commercial paper District. (Customers. City. 30 to 90 days. Boston No. 1 N o . 2 . . . . New York i . . . Buffalo Philadelphia.. No. 3 Cleveland No. 4 Pittsburgh Cincinnati.... N o . 5 . . . . Richmond Baltimore Atlanta No. 6 Birmingham.. Jacksonville... New Orleans.. Nashville N o . 7 . . . . Chicago Detroit No. 8 . . . . St. Louis Louisville Memphis Little R o c k . . . No. 9 . . . . Minneapolis... No. 10... Kansas City... Omaha. . Denver No. 1 1 . . . Dallas El Paso Houston No. 12... San Francisco. Portland Seattle H L. C. 7 fi fi* 7 5f 6" 7 fi fi-7 fi 7 6 7 6 6 V 8 8 8 fi 7 7 7 4 to 6 months. H. 7 7 7 fi 6 fi 7 7 6 6 6 fi fi-fi* 7 6 6 6 6 6 6 6 ; fi-7 8 7 8 6 6 6-7 8 fi fi 6 6^-7 7 fi 7 64 64 7 fi fi fi 7 8 8 6 8 7 8 72 7 7 8 6 64-7 s 7 8 f\ 7 8 7} (\% 7 10 fi 8 10 7 6 7 6J 6 62 64 8 6 8 7 8 6 8 Salt Lake City 8 f 7 7 8 Open market. 8 L fi 7 6 6 fi 6-7 fi 6 fi 7 6 6 fi 64-7 6 "6 6 6 6 fi-7 7 6 f 6 fi 6 f\ 61 fi 6 72 6 fi 7 fi 6 6 0 6 7 30 to 90 days. 4 to 6 month s. H. i . C. H. L. C. H. L. a fi1 fi 6 7 71 7 71 6 71 6 7" 6 5 ! 6 71 7 741 7 7 7 8 64 6 7 8 1 71 7 74 7 71 7* 7 fii 7" 6 6 6 6 6 6 1 fi fi-7 8 6 7 64-7 71 64 6*-7 6 6*-7 64 6* 6" 7 7 7 Interbank loans. S 51 fi 7 fi fi 7 7 7 8 64 7 6 7 i / 7 7 7* 8 7 fi fi fi* 7 fi 7 6 7* 7 7 6 7 74 6^ 7 7 7 7 6 fi 6 6-7* s 8 6 7 7 64 6 6* 7 7i 7 71 7 6 6 7 6 6 8 74 7^ 71 7 71 63 6 6 7 71 fii 64 fi 6 7 V 64 8 8 ?* fi 7 7 74 6f 7 7 7 7 6 6 g 6 6 6 fi 6 7 6 6-6i 6 R~ 6 fi 6 6 Unindorsed. H. L. H. X. (7. H 61 fif s 64 6 6 15 7 1 ax. 51 6 6 fil fii 51 61 6 9 60 fii 6 6 6 6 C. 64 61 54 6 fi3 fi 6 61 5 | fi 6 7 7 7 61 6 6 7 7 64 fi 6 6 6 6 6 6 G 6 7 f6 7 7 7 6 6 6 7 64 . . . . 61 51 fi 6 6 6 61 6 6 64 6 fi fi1 7 7 6 6-7 6 s fi fi71 fi* fi 8 fi 7* 6 6 6 6 6 6 6 6 8 6 8 Indorsed. E3 6 fi 6 6 6 6 Collateral loans—stock exchange or other current. Bankers' acceptances. 60 to 90 days. 6 fi 6* 6 fi .. Demand. 6 8 8 8 8 7 7 7 fi 8 8 8 8 s fi 6 6 64 6 6 6 6 8 6* 5! 5f ? 6 8 10 8 8 8 8 L fi 6 *\ fi 6 7 6 6 6 fi 6 6 f6 fi 6 C. 8 6 6-7 6 7 6 7 6 6 6 6-7 7 6-7 7 7 64 6 7 8 6 6 8 8 8 8 fi 7 7 7 fi 8 7 7 8 6 6-7 8 8 7 fi fi* ss fi 7" 8 8 fi 8 7 8 6 6 6 64 54 7 6 7 04 8 7 8 8 H. 7* 6 7 6 s fi* 6' fi fi fi 6 64 64 fi 6 7 6 fi 8 fi 6 8 8 8 7 8 6 6-7 8 7 7 q fi fil 8 6 7- 8 fi 8 10 7 6 6 6 6 7 6 7 8 7 s8 8 s 8 ?8 64 L C. 7 6 7 6 fi 6 fi* 6 7 6 7 6 8 6 7 fi fi-7 7 7 6 fi *fi" 7 64 7 8 7 8 fi 7 7 7 8 CO o H. L C. 7 5* 6* 6 6 fi 7fi fi 3 fi fii 5 H* 7 6 7 7 6 6 6 6 6 6 6 fi-7 7 6 7 6 fi fi 7 64 7 fi H fi-fii fi * 6 7* 6 6 8 8 8 8 fi 7 7 7 c. C. 7 6 fi 7 6 6 7 7 6 6 6 6 6 6 6 fi-7 6 7 6 6-7 fi fi 64 7 fi 7 7 7* 6 6-7 7 7 fi fil fi 7 fi 8 6 7 6 6 7 6 7 7 8 Cattle loans. 3 to 6 months. 3 months. J7. L. C. 1 7* fi - 7 6" 54 6 7 fi 6-6* fi " fi Secured by secured by warehouse Liberty receipts, bonds and etc certificates of indebtedness. 6 7 6 6 s v 64 8 8 fi 8 fi fi 6 7 7 8 ? 6-77 8 8 fi 7 7 7 6" fi* 6 6 8 8 8 8 fi 7 7 7 fi 6 8 7 8 8 8 8 10 ?5f 6fifi 6 !>4 5 6 ? 6 fi 6 fi 6 6 6 fi-7 7 6-7 6 61 6* 6 6 ? 6-7fi64 fi 5* fi fi 6* fi 8 6 6 6 6 7 7 2*8 f 8 8 7 8 Rates for demand paper secured by prime bankers' acceptances, high 6, low 54, customary 5^-6. a to CO 624 FEDERAL RESERVE BULLETIN. PHYSICAL VOLUME OF TRADE. In continuation of tables in the May FEDthere are presented in the following tables certain data relative to the physical volume of trade. The January, 1919, issue contains a description of the methods employed in the compilation of the data and the construction of the accompanying index numbers. Additional material will be presented from time to time as reliable figures are obtained. Consideration of data for the first four months of the present year shows that the physical volume of trade, as indicated by production and marketing data, has been larger than during the same period of 1919. Due to the influence of the railroad strike, however, April, 1920, figures show a considerable falling off from March figures for certain leading industries, in some cases sufficient to render them less than April, 1919, figures, but not, however, in general sufficient to prevent the figures for the first four months of this year exceeding those for a similar period last year. This falling off during April is by no means equal in all industries, nor have the figures for the earlier months in all cases been higher during 1920 than during 1919. While 1920 total receipts of live stock at 15 western markets, as well as the separate figures of receipts of cattle and calves, hogs and sheep, were less during January and February, 1920, than during the same months of 1919, the March figures were greater, both the total and the figures for each class. April figures, however, again showed a decrease, both as compared with April, 1919, and with March, 1920, both in the total figures and in the figures for the separate classes (except sheep, as compared with March). After a decrease in the January, 1920, figures of total grain and flour receipts at 17 interior centers, as compared with January, 1919, the seasonal falling off in 1920 was not as pronounced as in 1919, due probably to the fact that the movement in the autumn of 1919 had not been as heavy as in the autumn of 1918. February and March, 1920, receipts were in excess of those during the same months of 1919. These figures reflect the statements often made as to the effect of the transportation situation in delaying movement of crops to market. Considering figures for each of the principal grains and flour, it is noted that while wheat and flour receipts have been heavier during each of the first three months of 1920 than during the same month of 1919, the situation with respect to the other two principal grains, namely, corn ERAL RESERVE BULLETIN JUNE, 1920. and oats, is similar to that prevailing in the case of the total grain movement. April receipts in all cases show a great falling off from March receipts, and are less in all cases, with the exception of wheat, than receipts during April, 1919. Cotton sight receipts, reflecting the greater crop during the present crop year, have been higher during each month of 1920 than during the same month of 1919. Shipments reported by producers of three leading classes of lumber during each of the first three months of 1920 were likewise heavier. April figures, however, show a great falling off from those for March, although remaining higher than in 1919 for western pine and Douglas fir. Bituminous coal production, while showing a considerable decrease from March t& April, 1920, has continued during the, present year in excess of production during the corresponding period of 1919. The situation with respect to anthracite coal is not so favorable. Production of crude petroleum shows a steady growth, figures for each month of 1920 being considerably in excess of those for the similar month of 1919, as well as of those for the preceding month of 1920. In the iron and steel industry, pig iron and steel ingot production, while falling off greatly during April from the March figures, were higher for each month except January than figures for the corresponding month of 1919. Unfilled orders of the United States Steel Corporation show a steady growth from month to month during 1920, as contrasted with a steady decrease from month to month dui%ng the same period of 1919, and at the close of April corresponded to an index number of 197 as compared with 91 at the close of April, 1919. In the textile group, cotton consumption has been heavier during each month of 1920 as compared with 1919, and has shown no considerable falling off. Wool consumption during each of the first three months has been practically twice as large as during the same month of 1919, while the percentage of idle machinery has been very much less. Raw silk imports were heavier during the first three months of 1920, although less during April, at which time in 1919 the great increase in imports which is now subsiding commenced. There has been a steady decrease from month to month during the present year, the April index number being only 109 as contrasted with 237 for January. The tonnage of vessels cleared has been heavier during each month of 1920 than during the same month of 1919. JUNE, 1920. 625 FEDERAL RESERVE BULLETIN. Live-stock movements. [Bureau of Markets.] Receipts. Shipments. Cattle and calves, 60 markets. Hogs, 60 markets. Sheep, 60 markets. morses and mules, 44 markets. Total, all kinds. Cattle and calves, 54 markets. 1919. Head. 1,751,983 Head. 3,668,191 Head. 1,396,689 Head. 50,770 Head. 6,867,633 Head. 696,639 July... August September.. October November.. December... 2,007,266 2,019,139 2,377,054 2,989,090 2,680 042 2,169,631 2,998,836 2,103,609 2,401,677 3,144,831 3,775,589 5,024,650 2,177,942 3,211,331 3, 810,441 3,605,198 2,751,421 2,393,632 48,691 81,917 140,848 124,497 140,192 7,232,735 7,415,996 8,730,020 9,863,616 9,347,244 9,674,579 1920. January February... March April 1,868,723 1,468,370 1,803,073 1,542,150 5,275,412 3,423,992 3,963,245 3,030,801 1,560,051 1,387,111 1,255,490 1,441,072 138,541 108,056 82,584 48,036 8,842,727 6,387,529 7,104,392 6,062,059 April Sheep, 54 markets. Horses and mules, 44 markets. Head. 1,110,392 Head. 576,431 Head. 49,675 Head. 2,433,137 706,843 894,816 1,150,183 1,532,297 1,374,452 967,160 963,662 690,821 860,614 1,103,837 1,308,095 1,608,292 997,338 2,014,267 2,466,937 2,159,531 1,597,007 1,183,602 43,738 74,268 135,724 125,701 134,679 86,534 2,711,581 3,674,172 4,613,458 4,921,366 4,414,233 3,845,588 752,605 591,691 570,323 593,362 1,665,274 1,287,169 1,399,485 1,119,205 669,458 572,634 483,550 724,718 138,145 110,827 87,896 47,998 3,225,482 2,562,321 2,541,254 2,485,283 Hogs, 54 markets. Total, all kinds. Receipts and shipments of live stock at 15 western markets. [Chicago, Kansas City, Oklahoma City, Omaha, St. Leuis, St. Joseph, St. Paul. Sioux City, Cincinnati, Cleveland, Denver, Fort Worth, Indian1 apolis, Louisville, Wichita.] RECEIPTS. [Monthly average, 1911-1913=100.] Cattle and calves. Head. April 1919. July August September October November December January February March April 1920. Relative. Hogs. Head. Sheep. Relative. Head. 1,255,379 125 2,823,484 128 970,070 1,527,881 1,541,133 1,871,042 2,317,487 2,046,664 1,650,315 152 153 186 230 203 164 2,411,539 1,595,759 1,704,944 2,160,079 2,715,955 3,785,870 110 73 78 98 124 172 1,558,767 2,220,229 2,890,831 2,405,511 1,743,189 1,589,237 1,400,031 1,068,092 1,203,499 1,040,903 139 114 119 103 3,912,449 2,440,154 2,910,909 2,150,281 178 119 132 1,035,591 948,116 900,299 928,191 Horses and mules. Relative Head. Relative Head. Relative. 5,080,442 110 37,866 57,206 88,283 79,240 84,018 53,453 82 124 192 172 183 116 5,536,053 5,414,327 6,555,100 6,962,317 6,589,826 7,078,875 120 117 142 151 143 153 90,662 76,048 57,880 31,235 197 168 126 6,438,733 4,532,410 5,072,587 4,150,610 139 105 110 90 31,509 114 162 212 176 128 116 Total, all kinds. SHIPMENTS. April 1919. July August September October November December January February March April 506,835 125 748,437 154 319,625 63 29,974 73 1,604,871 112 515,071 650,252 872,043 1,154,995 993,148 686,325 127 160 214 284 244 169 691,283 455,705 501,856 654,755 788,107 1,003,682 143 94 104 135 163 207 694,942 1,352,252 1,849,958 1,382,419 945,992 682,439 138 269 367 275 188 136 32,836 49,996 83,264 80,828 78,889 55,831 80 122 203 197 192 136 1,934,132 2,508,205 3,307,121 3,272,997 2,806,136 2,428,277 135 175 230 228 195 169 548,841 427,608 418,310 414,967 135 113 103 102 1,026,763 814,253 923,526 712,087 212 180 191 147 403,382 334,012 298,878 373,381 80 71 59 74 90,630 79,100 62,625 31,348 221 207 153 76 2,069,616 1,654,973 1,703,339 1,531,783 144 124 119 107 1920. 626 FEDERAL RESERVE B U L L E T I N . JUNE, 19-20. Exports of certain meat products. [Department of Commerce.] [Monthly average, 1911-1913=100.] Beef, canned. Beef, fresh. Beef, pickled, and other cured. Rela- Pounds. tive. Relative. Hams and shoulders, cured. Bacon. Relative. Lard. Relative. Pounds. Rela- Pounds. tive. 1919. April 2,896,759 437 21,639,915 1,744 2,673,681 100 141,814,255 847 109,569,968 734 86,555,951 July August September October... November. December. 5,392,104 2,894,361 1,213,709 1,793,784 1,393,238 1,886,835 814 8,680,524 437 8,075,366 183 7,285,951 271 31,178,216 210 15,694,002 285 6,061,769 700 651 587 2,513 1,265 489 3,320,564 2,494,113 3,523,887 3,402,422 2,997,652 3,135,069 124 117,679,193 93 84,150,778 132 57,179,511 127 56,462,312 112 65,288,694 117 58,982,754 703 502 341 337 390 352 47,452,834 40,147,727 18,209,239 13,090,972 16,844,285 15,688,297 318 269 122 88 113 105 68,163,734 48,968,628 36,960,364 41,016,518 42,106,339 63,645,722 1920. J a n u a r y . . . 1,081,643 735,132 February.. 847,397 March 1,606,737 April 163 22,872,223 119 13,010,793 128 6,036,166 243 17,687,306 1,844 1,124 487 1,426 1,670,500 1,631,457 2,290,835 2,241,460 77,501,002 75,891,195 75,002,410 24,356,349 463 486 448 145 13,905,923 24,217,706 31,088,859 15,640,236 93 174 208 105 38,823,902 36,644,906 69,429,785 40,758,401 63 65 86 84 Pounds. Pounds. Pounds. Pickled pork. Rela- Pounds. tive. Relative. 197 2,494,454 56 155 111 84 93 96 145 2,392,515 2,117,796 2,792,439 3,804,290 4,934,696 4,125,550 54 48 63 86 111 93 88 89 158 93 4,251,187 3,710,308 3,160,456 2,784,535 96 90 71 63 Receipts of grain and flour at 17 interior centers. [Chicago, Cleveland, Detroit, Duluth, Indianapolis, Kansas City, Little Rock, Louisville, Memphis, Milwaukee, Minneapolis. Omaha, Peoria - St. Louis, Spokane, Toledo, Wichita; receipts of flour not available for Cleveland, Detroit, Indianapolis, Louisville, Omaha, Spokane Toledo, and Wichita.] [Compiled from reports of trade organizations at these cities.] [Monthly average, 1911-1913=100.] Cora. Wheat. Oats. Rye. Barley. Total grain. Total grain and flour.i Flour. RelaRelaRelaRelaRelaRelaRelaBushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Barrels. Relative. Bushels. tive. 1919. April 11,208,405 4218,669,321 83 20,063,678 99 5,498,493 497 9,634,405 134 65,074,302 841,958,411 73,887,152 85 49,612,115 July 80,714,559 August September 69,953,295 October... 51,006,164 November. 35,729,832 December. 30,582,779 18412,549,219 299 8,503,282 260 16,267.145 18912,490,107 133 14,606,137 113 23,983,657 56 25, 233,109 38 29, 774,582 72 26; 721,030 56 24; 323,974 6517, 699,925 107 15, 592,282 125 3,!,105,486 1473! 1,824,263 132 5:i, 446,371 120 4:1,472,397 88 2:1,579,579 77 2:1,876,636 281 8.i, 627,091 345 6i, 638,871 492 5:\. 294,256 404 4::, 369,326 233 3,582,873 3: 260 ~, 3: 769,859 120 99,127,020 93129,455,557 74123,682,097 96,661,968 74,198,346 76,805,213 1271,572,420 166 2,!,283,145 159 3,;, 073,034 124 3:;, 468,787 95 3:;, 541,957 99 2,371,262 80106,202,910 117131,738,702 510,750 177 112'271,510 181 90,137,153 121 87,475,892 122 152 159 129 104 101 93 24.139,094 72 26,051,855 67 24,306,196 57,11,326,509 108 20,925,941 124 20,575,654 108 19,149,624 5012,952,593 104 4,,378,610 109 3,263,686 3, 95 3,548,739 3: 64 ^,914,553 2: 396 3,298,544 3, 316 ~!, 2, 470,622 3212: 1,928,440 263 21,245,881 77,816,813 70,477,141 67,940,797 44,699,772 100 2,298,692 97 2,059,421 871 ""1,617,544 57 888,423 117 88,160,927 113 79,744,536 75,219,745 45 48,697,676 102 1920. January... February.. March April 25,074,624 18,115,324 18,007,798 15,260,236 1 100 87 56 Flour reduced to its equivalent in wheat on basis of 4J bushels to barrel. Shipments of grain and flour at 14 interior centers. C hicago, Cleveland, Detroit, Duluth, Kansas City, Little Rock, Louisville, Milwaukee, Minneapolis, Omaha, Peoria, St. Louis, Toledo, Wichita; shipments of flour not available for Cleveland, Detroit, Louisville, Omaha, Toledo, and Wichita.] Wheat. Corn. Oats. Rye. Total grain. Barley. Total grain and flour.i Flour. RelaRelaRelaRelaRelaRelaRelaRelaBushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Barrels. tive. Bushels. tive. 1919. April 30,764,448 199 8,261,317 58 16,032,046 106 8,143,990 1,150 6,632,828 July August September... October November... December... 12,423,422 36,986,491 37,730,048 25,813,130 20,877,718 17,383,075 81 8,102,275 240 5,135,459 245 6,622,779 167 7,116,502 135 6,609,629 11311,509,719 5715,1,628,503 3617:,919,623 4716:,651,580 5016:i, 705,015 4715;i, 582,081 8112,!, 433,716 103 1,546,100 1,436,377 110 2,317,740 11011,426,528 103 3,110,541 3 82 2,255,139 2; 1920. January February March April 17,514,087 14,114,215 11,027,336 11,058,643 11412,326,051 9811,977,640 7111 "" 11,165,894 72 5,371,811 8715, i, 822,099 91131,073,089 7914t, 243,957 38 8,691,440 5212, ,007.718 104 31,685,914 92 2;1,113,505 3201 ,306,340 4331 ,574,887 94 3!,062,530 1,811,500 1,2451 ,651,509 57 8: L 218 9,133,000 203 5,028,674 327 2,943,167 202 3,087,951 439 2,827,956 319 2,624,376 170 69,834,629 1413,595,569 106 86,014,690 133 46, 833,304 66: 506,624 66: 265,314 54', 149,126 49, 007,925 46, 206,025 95 2,589,176 2, 135 3,805,273 3 134 4,787,300 4 110 5,975,261 99 5,604,616 5 94 4,470,122 4 76 58,,484,596 112 83:,630,353 141 87:,808,164 176 81,037,801 165 74:,228,697 132 66:,321,574 90 129 136 125 115 103 5151, 355,869 36 42: 584,789 40 41 074,604 42 35,584 "',903 104 4,[, 140,314 92 3;1,156,962 83 2,1,960,175 721 ,702,132 122 100 87 50 108 94 84 234 129 75 79 73 67 Flour reduced to its equivalent in wheat on basis of 4£ bushels to barrel. 69, 987,282 56:,791,118 54:,395,392 43:,244,497 67 JUNE, 1920. 627 FEDERAL RESERVE BULLETIN. Receipts of grain and flour at nine seaboard centers. [Boston, New York, Philadelphia, Baltimore, New Orleans, San Francisco, Portland (Oreg.), Seattle, Tacoma; receipts of flour not available for Seattle and Tacoma.] [Compiled from reports of trade organizations at these cities.] [Monthly average, 1911-1913=100.] Wheat. Corn. Rye. Oats. Barley. Total grain. Flour. Total grain and flour.i RelaRelaRelaRelaRelaRelaRelaBushels. Relative. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. April 1919. July August... September October November December 1920. January February March April 12,581,074 1001,089,425 314,604,521 5,806,227 26,902,757 28,010,858 14,755,827 9,152,534 5,782,777 46 214 222 117 73 46 901,842 815,132 512,072 507,065 438,147 816,630 25 6, i, 959,186 23 5! 1,676,984 14 5: ), 345,464 1,335,038 14 4: 12 31,998,525 232:J, 991,717 45 1,491,759 421,244,393 511,203,649 43 1,317,555 42 2,663,274 38 2,331,246 34 31,646,727 371 ,546,590 5,711,009 4,898,690 6,486,745 5,441,434 1 3,5681,853,372 97 5,069,529 1461,478,551 1,041 9,723;,852 : 119 61,710 43 4!'. 993,395 113 534,301 376 2!!, 171,521 911,717,301 1,209 796,839 841,391,024 979 851,651 631,664,755 1, 172 2,309,085 56 2,643,611 53 3,212,668 77 4,119,986 33 3,440,350 1, 8611, , 297,839 2, 423 1,315,291 2, 9001,300,871 2,421 685,054 112 25,197,921 1112,549,370 244 36,670,086 134 586 24,869,658 30138,449,978 13136,574,216 12,112,070 5115,831,881 13913,564,964 1101 ,514,135 1691 ,385,762 161 2:5,306,213 97 2:5,521,329 701 ,552,796 60 2:5,149,458 145 31,683,266 133 44,685,907 221;46,952,175 24133,458,051 149 22,819,463 206 23,237,525 116 163 171 122 83 85 7813,) 3,807,492 8513,1 .3,002,288 7816 ' .6,757,978 4112,430,983 611.,561,693 611 ,102,606 741., 752,860 55 843,916 150 20,835,111 113|l7,964,015 168,24,645,848 8116,228,605 76 70 90 59 Flour reduced to its equivalent in wheat on basis of 4J bushels to barrel. Stocks of grain at eight seaboard centers at close of month. [Boston, New York, Philadelphia, Baltimore, New Orleans, Newport News, Galveston, San Francisco.] [Compiled from reports of trade organizations at these cities.] [Bushels.] Corn. Wheat. 1919. April July August September October November December 1920. January February March April Rye. Oats. Barley. Total grain. 7,448,992 464,503 5,335,971 3,434,873 5,420,013 22,104,352 5,557,644 17,396,269 21,171,440 25,322,242 18,728,730 13,053,280 265,196 155,491 172,254 82,240 155,490 279,451 3,760,063 2,216,989 1,901,510 1,898,271 2,504,833 2,435,455 867,491 578,250 516,142 483,270 1,264,494 709,276 5,528,176 5,414,183 4,061,830 3,079,360 2,351,012 3,007,379 15,978,570 25,761,182 27,823,176 30,865,383 25,004,559 19,484,841 8,485,491 6,634,682 6,280,682 7,704,155 711,501 948,239 851,287 967,475 2,398,639 1,571,209 1,351,457 389,958 2,397,156 2,671,743 2,389,321 1,944,350 2,587,543 2,340,787 1,891,862 2,034,983 16,580,330 14,166,660 12,764,609 13,040,921 NOTE.—Figures for San Francisco include also stocks a t P o r t Costa a n d Stockton. Cotton. [New Orleans Cotton Exchange.) [Crop years 1911-1913=100.] Sight receipts. Bales. Relative. Port receipts. Bales. Relative. Overland movement. Bales. Relative. a t ports a n d American spinners' Stocks interior towns a t takings. close of m o n t h . Bales. Relative. Bales. Relative. 1919-20. August September October November December January February Maren April 313,301 584,776 1,779,927 2,369,177 2,147,365 1,526,622 1,003,226 1,088,882 528,850 25 47 142 189 171 122 86 87 42 238,271 260,698 1,029,331 1,178,443 1,069,693 982,030 725,515 621,808 499,187 26 28 112 128 116 107 85 68 54 49,630 26,138 110,202 245,237 242,940 205,233 138,084 108,573 42,029 47 25 105 233 231 195 141 103 40 302,238 300,001 621,784 1,155,324 1,214,337 793,453 374,093 270,269 147,753 67 66 137 254 267 175 88 59 33 1,412,048 1,501,805 2,340,881 2,616,383 2,765,040 2,470,496 2,510,482 2,276,737 2,148,038 120 127 199 222 235 210 213 193 182 628 FEDERAL RESERVE BULLETIN. JUNE, 1920. California shipments of citrus and deciduous fruiU. [1911-1913=100.] Lemons. Carloads. Relative. Total deciduous fruits. Total citrus fruits. Carloads. Relative. Carloads. Relative. Carloads. 1919, April 5,450 223 1,038 256 6,488 228 36 July August September October November December 2,568 1,785 1,840 2,706 3,257 3,592 105 73 75 111 133 147 1,038 436 414 572 442 271 256 108 102 141 109 67 3,606 2.221 2,254 3,278 3,699 3,863 127 78 79 115 130 136 4,199 6,601 6,781 5,529 2,141 197 2,457 2,683 4,715 3,720 100 118 193 152 630 852 651 508 156 225 161 125 3,087 3,535 5,366 4,228 108 133 188 148 123 139 155 22 1920 January February March April Sugar. [Data for ports of New York, Boston, Philadelphia.] [Weekly Statistical Sugar Trade Journal.] [Tons of 2,240 pounds. Monthly average 1911-1913= 100.] Receipts. Tons. 1919. April July August September October November Raw stocks at close of month. Meltings. Relative. Tons. Relative. Receipts. Relative. Tons. Tons. Raw stocks a t close of month. Meltings. Relative. Tons. Relative. Relative. Tons. 318,492 173 277,000 151 107,582 62 1919. December 96,342 52 126,765 69 10,432 6 264,782 246,419 262,137 233,650 154,674 144 134 142 127 84 292,000 229,000 292,000 216,000 177,000 159 125 159 118 96 57,975 75,394 45,531 63,181 40,855 34 44 26 37 24 1920. January February March April 208,554 316,667 335,532 310,580 113 184 182 169 181,000 269,000 333,000 307,000 99 157 182 167 37,986 85,653 88,185 91,765 22 50 51 53 Naval stores. [Data for Savannah, Jacksonville, and Pensacola.] [In barrels.] [Compiled from reports of trade organizations at these cities.] Spirits of turpentine. Spirits of turpentine. Rosin. Stocks at Stocks at Receipts. close of Receipts. close of month. month. Stocks at Stocks at Receipts. close of Receipts. close of month. month. 1919. April July August September October November Rosin. 1919. 6,690 75,546 18,993 225,657 23,598 21,013 21,574 19,367 18,757 30,656 24,756 27,021 27,389 28,741 76,561 73,402 72,616 67,080 77,125 235,707 203,812 190,580 186,231 204,281 December 17,109 30,924 76,792 200,333 8,300 3,762 1,876 7,644 24,910 17,900 4,819 3,996 47,874 29,303 14,660 27,029 165,927 140,559 103,443 98,517 1920. January February March April JUNE, 1920. 629 FEDERAL, RESERVE BULLETIN. Lumber. [From reports of manufacturers' associations.] [M feet.] Southern pine. Number of Producmills. tion. 1919. Western pine. Ship- Eastern white pine. Douglas fir. NumShip- Numof Producber of Producments. ber mills. tion. mills. tion. Ship- North Carolina pine. NumShip- NumShipber of Producof Produc- ments. ments. ber mills. tion. mills. tion. 397,005 397,677 124,341 97,679 114 264,623 266,308 11,431 14,020 22,369 21,877 July August September. October November. December.. 206 401,939 204 417,036 202 416,640 201 421,025 202 391,347 198 353,923 466,786 423,002 372,727 356,124 344,717 363,176 148,533 152,748 154,102 156,828 110,525 65,989 140,680 140,236 138,537 143,252 117,472 93,377 114 118 126 124 126 129 268,634 416,422 332,905 419,108 324,511 227,331 301,050 397,290 261,797 339,321 241,301 176,935 27,382 20,247 16,913 12,888 2,786 4,776 22,470 26,839 22,574 18,139 21,596 17,840 22,326 27,177 33,146 24,055 24,925 19,048 34,191 30,159 35,468 22,079 26,926 26,241 1920. January February.. March April....... 202 203 205 205 386,481 404,706 383,239 369,047 436,944 424,775 438,056 359,461 85,583 130,425 167,165 144,180 147,180 156,211 133,114 128 124 123 126 327,568 332,511 342,948 359,651 344,568 295,934 329,012 274,597 38,007 32,551 43,771 46,222 63,614 59,687 61,620 61,757 24,678 15,534 29,633 13,659 15,202 29,896 10,613 April 203 R E C E I P T S AND SHIPMENTS OF LUMBER AT CHICAGO. [Chicago Board of Trade.] [Monthly average, 1911-1913=100.] Receipts. M feet. April 1919. July August September October November Relative. Receipts. Shipments. M feet. Relative. Relative. M feet. 144,253 59,055 77 200,148 170,385 205,909 208,638 176,972 90,134 87,953 93,120 95,674 70,175 118 115 121 125 92 December January February March April 1919. 1920. Shipments. M feet. Relative. 226,617 107 79,553 104 208.145 235,423 284.146 124,725 119 134 59 71,233 81,561 122,401 51,495 114 160 67 Coal and coke. [Bituminous coal and coke, U. S. Geological Survey; anthracite coal, Anthracite Bureau of Information.] [Monthly average, 1911-1913=100.] Bituminous coal, estimated monthly production. Short tons. April 1919. July August September October November December. 1920. January February March April Relative Anthracite coal, shipments over 9 roads. Beehive coke, estimated monthly protion Short tons. Short tons. Relative. Relative 32,164,000 87 5,224,715 1,316,960 50 42,698,000 42,883,000 47,402,000 56,243,000 18,688,000 36,612,000 115 116 128 147 55 99 6,052,334 6,144,144 5,687,401 6,560,150 5,971,671 6,138,460 108 109 101 117 106 109 1,503,367 1,733,971 1,790,466 1,551,979 1,680,775 1,760,800 58 66 48,689,000 40,127,000 46,792,000 37,966,000 131 116 126 102 5,713.319 4,913,664 102 94 1,982,000 1,731,000 2,025,000 1,602,167 76 71 77 61 59 64 630 JUNE, FEDERAL RESERVE BULLETIN. 1920. Crude petroleum. [U. S. Geological Survey.] [Barrels of 42 gallons each.] Produced. Barrels. Relative. Produced. Stocks at end of month (barrels). Barrels. Stocks at end of month Relative. (barrels). 1919. 1919. April 29,386,000 153 130,729,000 July August September October November 33,894,000 33,862,000 33,667,000 33,319,000 32,114,000 177 177 176 174 168 140,093,000 136,467,000 137,131,000 135,461,000 131,601,000 December 32,508,000 170 127,867,000 33,980,000 33,212,000 36,461,000 36,349,000 177 186 190 190 127,164,000 126,339,000 125,597,000 124,873,000 1920. January February March April Total output of oil refineries in United Stales. [Bureau of Mines.] Crude oil run (barrels). Gasoline (gallons). 1919. Kerosene (gallons). Gas and fuel (gallons). Lubricating (gallons). March 27,866,775 311,306,755 170,290,930 574,774,156 67,063,995 July August September October November December 31,202,522 32,362,057 32,601,044 33,682,968 32,213,754 32,427,617 342,491,757 326,846,167 339,582,564 363,456,747 338,667,570 335,659,587 205,727,289 219,502,888 199,244,293 227,104,346 214,829,925 229,476,468 638,185,469 685,702,461 683,409,674 680,158,446 663,309,514 685,084,086 67,037,414 72,920,214 70,236,692 78,658,410 75,962,212 72,040,862 30,815,160 29,208,723 33,592,004 336,719,157 322,588,697 367,137,678 195,956,392 194,523,334 191,110,175 617,555,156 589,684,857 686,945,963 75,878,635 74,243,073 81,818,973 1920. January February March STOCKS A T CLOSE O F M O N T H . 1919. Mar. 31 15,106,361 546,062,429 294,677,623 749,067,806 165,495,254 July 31 Aug. 31 Sept. 30 Oct. 31 Nov.30 Dec. 31 15,304,915 15,131,549 13,925,441 14,091,945 13,983,716 13,143,285 514,919,358 434,531,446 371,125,419 354,160,071 378,133,185 446,793,431 279,855,061 296,065,646 311,843,057 329,160,795 347,070,560 339,319,690 817,809,519 830,329,785 862,135,385 828,574,452 791,052,991 714,124,455 173,884,303 170,572,819 158,967,070 152,536,736 149,193,143 137,318,934 13,200,727 13,500,599 14,346,458 515,934,364 562,996,489 626,393,046 327,548,646 330,120,942 334,617,117 652,080,901 590,322,125 580,182,858 141,690,177 132,759,244 130,630,597 1920. Jan. 31 Feb. 29 Mar.31 Iron and steel. [Great Lakes iron-ore movements, Marine Review; pig-iron production, Iron Age; steel-ingot production, American Iron and Steel Institute.] [Monthly average, 1911-1913=100; iron ore, monthly average, May-Novemter, 1911-1913=100.] Iron-ore shipments from the upper Lakes. Pig-iron production. Steel-ingot production. Unfilled orders U . S . Steel Corporation at close of month. Gross tons. Relative. Gross tons. Relative. Gross tons. Relative. Gross tons. Relative. 1919. April. July August September. October November.. December.. 9,173,429 4,423,133 8,178,483 6,201,883 3,152,319 151 73 135 102 52 2,478,218 107 I 2,239,711 93 4,800,685 91 2,428,541 2,743,388 2,487,965 1,863,558 2,392,350 2,633,268 105 118 107 80 103 114 2,508,176 j 2,746,081 ! 104 114 5,578,661 6,109,103 6,284,638 6,472,668 7,128,330 8,265,366 106 116 119 123 135 157 3,015,181 2,978,879 3,375,907 2,739,797 130 138 146 118 2,968,102 i 2,865,124 3,299,049 ! 2,638,305 123 127 137 109 9,285,441 9,502,081 9,892,075 10,359,747 176 180 188 197 1920. January.. February. March./.. April JUNE, 631 FEDERAL RESERVE BULLETIN. 1920. Imports of pig tin. [Department of Commerce.] [Monthly average, 1911-1913=100.1 Relative. Pounds. 1919. April 1 109 122 178 168 113,120 9,872,459 11,087,403 16,210,512 15,233,671 Relative. 1919. December 504,903 July August September October November Pounds. 12,940,125 142 8,772,953 13,925,843 11,980,019 10,345,130 97 164 132 114 1920. January February March April Raw stocks of hides and skins. [Bureau of Markets.] [In pieces.] hides' Calfskins. Kipskins. Goat. Kid. Cabretta. Sheep and lamb. 1919. Apr. 30 5,256,384 1,845,254 421,474 12,080,410 724,209 1,520,522 9,095,816 July 31 Aug. 31 Sept. 30 Oct. 31 Nov. 30 Dec. 31 4,966,081 5,498,844 6,158,289 6,436,765 6,918,534 7,349,146 2,389,368 2,145,320 2,055,084 2,007,208 1,844,737 2,117,442 554,516 585,269 947,546 1,097,039 1,188,173 1,122,156 15,589,944 18,263,446 16,749,664 15,302,942 14,248,671 15,984,179 1,964,828 880,276 823,740 2,239,604 331,389 752,055 2,767,694 2,348,769 2,736,802 2,574,499 2,684,084 2,092,425 6,815,160 7,126,885 8,661,215 10,122,930 9,398,712 9,296,812 6,773,360 6,559,337 6,558,300 6,057,770 1,920,184 1,859,697 1,930,218 2,278,013 1,036,372 1,141,620 966,850 831,237 13,474,529 15,968,660 15,968,660 14,666,558 927,436 665,524 468,188 156,871 1,893,614 2,197,683 2,047,519 1,933,099 8,902,057 9,460,914 9,227,252 8,911,154 1920. Jan.31 Feb. 29 Mar. 31 Apr. 30 NOTE.—Figures for Apr. 30 are provisional. Textiles. [Silk, Department of Commerce; cotton, Bureau of the Census; wool, ool, Bureau of Markets; idle machinery, January-September, 1918, inclusive, ation of National Association of Wo< Wool Manufacturers.] [Cotton, monthly average crop, years 1912-1914=100; silk, monthly average, 1911-1913=100.] Percentage of idle woolen machinery on first of month to total reported. Cotton consumption. Bales. April 1919. July August September October November December 1920. January February March... April May Imports of raw silk. Cotton spindles active during month. Wool consumption (pounds). Relative. Looms. Spinning spindles. Wider Under Sets of Combs. than 50- 50-inch cards. Woolen. Worsted. inch reed reed space. space. Pounds. Relative. 475,875 106 33,208,670 39,159,945 48.4 38.9 26.5 34.2 28.4 36.1 2,988,838 146 510,328 502,536 491,313 555,344 490,698 511,585 113 112 109 123 109 114 34,171,690 34,187,310 34,216,662 34,307,367 34,483,775 34,594,214 54,973,093 48,938,476 52,985,961 60,018,415 52,428,854 55,566,253 22.0 22.1 19.9 16.0 14.8 13.9 26.0 24.9 22.8 20.7 18.2 19.1 9.7 9.4 8.1 8.2 7.6 10.5 7.6 6.5 5.5 5.9 5.3 5.3 8.9 8.9 7.9 7.7 6.7 8.4 13.5 10. 9 12.8 7.2 6.7 6.2 5,202,407 3,802,500 6,755,271 3, 955,845 4,841,407 3,576,585 254 186 330 193 237 175 591,725 516,594 575,704 567,839 132 123 128 126 34,739,071 34,668,643 34,667,747 34,346,737 63,059,862 55,247,652 58,344,602 57,887,832 14.5 12.2 14.9 13.1 15.2 18.5 17.6 19.8 16.9 18.2 8.8 7.6 9.8 9.6 10.6 7.2 6.9 7.0 7.1 6.7 9.1 7.1 10.3 9.5 11.5 10.2 7.9 11.7 7.0 7.0 4,855,989 3,696,121 2,491,651 2,227,857 237 194 122 109 Production of wood pulp and paper. [Federal Trade Commission.] [Net tons.] April 1919. July August September October November Wood pulp. News print. Book. Paper board. Wrapping. Fine. 284,984 116,278 67,628 138,802 48,158 22,470 260,685 260,987 266, 915 308,710 324,488 113,929 113,413 111,434 125,216 116,603 75,613 82,737 81,024 89,440 84,085 169,593 189,782 184,897 202,524 182,940 63,769 64,861 63,353 67,110 63,394 30,036 33,122 31,923 34,808 32,468 Wood pulp, Newsprint. 1919. December 306,617 122,781 1920. January February. March April 302,541 266,191 327,143 350,194 129,663 114,235 127,847 128,269 Paper board. Wrapping. 8,779 174,649 62,288 31,014 96,419 85,532 95,851 95,251 211,934 176,855 207,863 199,395 70,109 61,574 68', 403 75,347 32,886 29,202 33,671 33,493 Book. ^. Fme - 632 FEDERAL, RESERVE BULLETIN. JUNE, 1920. Sale of revenue stamps for manufactures of tobacco in the United States (excluding Porto Rico and Philippine Islands). [Commissioner of Internal Revenue.] Cigarettes. Cigars. March 1919. July August September October Large. Small. Small. Manufactured tobacco. Number. 549,098,351 Number. 84,493,873 Number. 3,845,079,275 Pounds. 29,227,678 569,908,339 533,227,393 575,777,829 677,622,154 47,500,287 54,953,647 53,735,960 64,170,793 3,585,030,983 3,918,403,687 4,283,247,387 5,028,875,337 33,838,667 35,568,246 36,623,005 39,335,546 Cigars. Cigarettes. Manufactured tobacco. Large. Small. Small. 1919. November December Number. .655,421,893 662,046,997 Number. 56,080,813 45,491,540 Number. 4,768,598,203 4,578,641,450 Pounds. 32,965,088 29,409,443 1920. January February March 663,634,243 593,832,200 753,239,958 58.837,900 43,358,500 55,052,100 4,528,760,833 3,536,117,847 4,373,778,917 33,608,313 31,531,460 38,422,481 Output of locomotives and cars. [Locomotives, United States Railroad Administration; cars, Railway Car Manufacturer's Association.] Output of cars. Locomotives. Locomotives. Domestic shipped. Foreign, completed. Domestic. Foreign. Total. 1919. April... Number. 197 Number. 36 Number. 7,777 Number. 7,373 Number. 15,150 1919. December.. July August September.. October November.. 121 160 111 89 39 73 173 51 55 23 2,777 18,509 19,980 10,445 5,015 4,302 3,715 2,622 9,713 23,524 24,282 14,160 11,589 1920. January February.. March April 8,967 Domestic shipped. Output of cars. Foreign completed. Domestic. Foreign. Total. Number. Number. 103 42 Number. 4,506 Number. 2,428 Number. 6,934 22 4,650 3,960 3,053 2,313 1,914 1,066 2,040 1,934 6,564 5,026 5,093 4,247 48 Vessels built in United States, including those for foreign nations, and officially numbered by the Bureau of Navigation. [Monthly average, 1911-1913=100.] Gross Relative. Number. tonnage. 1919. April 201 375,605 1,554 July August September October November 245 238 202 210 143 397,628 455,338 378,858 357,519 347,051 1,645 1,884 1,568 1,479 1,436 Gross Number. tonnage. Relative. December January February March April 1919. 149 294,064 1,217 115 140 170 164 253,680 267,231 279,709 251,442 1,050 1,185 1,157 1,040 1920. Tonnage of vessels cleared in the foreign trade. [Department of Commerce.] [Monthly average, 1911-1913= 100.] Percentage Relative. Rela- American to tive. total. Net tonnage. American. Foreign. 1919. Total. April 1,744,753 2,058,220 3,802,973 July August — September. October... November. 2,362,571 2,957,249 2,627,480 2,645,778 2,251,871 2,920,247 2,797,818 2,481,676 2,073,560 1,910,489 5,282,818 5,755,067 5,109,156 4,719,338 4,162,360 136 148 131 121 107 Net tonnage. American. Foreign. Total. Percentage m Relative. Rela- American to tive. total. 45.9 181 1919. Dcember 2,043,675 1,733,923 3,777,598 97 54.1 214 44.7 51.4 51.4 56.1 54.1 177 203 203 222 214 1920. January February March April 1,933,385 1,702,407 1,836,716 2,504,038 1,949,798 1,628,212 2,040,538 1,960,634 3,883,183 3,330,619 3,877,254 4,464,672 100 92 100 115 49.8 51.1 47.4 56.1 197 202 187 222 Net ton-miles, revenue and nonrevenue. [United States Railroad Administration.] February. July August September. October 1919. 25,629,489,000 34,914,294,000 36,361,653,000 38,860,311,000 40,343,750,000 November. December.. January... February. 1919. 32,539,248,000 33,462,298,000 1920. 34,769,722,000 32,699,143,000 JUNE, 1920. FEDERAL RESERVE BULLETIN. GOLD SETTLEMENT FUND. 633 Treasury certificates issued during the week, and from April 15 interest payments on the third Liberty loan. Operations of the New York bank through the fund resulted in a net gain through settlements of $113,544,603 and a net loss through transfers of $98,064,520, thus indicating a net movement of funds to New York of $15,480,083. Increases in gold holdings through settlements and transfers are also shown for the other three eastern and the San Francisco banks, while substantial losses are shown for all other Federal Reserve Banks. Net deposits of gold in the banks' fund aggregating $130,362,883 were largely offset by7 net transfers of $112,439,500 to the agents7 fund; this resulted in an increase in the banks aggregate balances in the fund by $17,923,383. The agents' fund was credited with the amounts transferred from the banks ($202,400,000) and charged with withdrawals aggregating $89,960,500. On May 20, 1920, the aggregate balances in the two funds stood at $1,132,392,701, or $49,987,117 less than on February 19, 1920. Below are given figures showing operations of the two funds for the period from February 20 to May 20, 1920, inclusive: From July 1, 1918, when the Board began effecting daily settlements through the gold fund, until March 1 of the present year, settlements were made each morning of credits wired to the Board as at close of business on the previous day by each Federal Reserve Bank and direct settling branch. This resulted in considerably increasing the "float" carried by some of the Federal Reserve Banks for other Federal Reserve Banks on account of payments for checks being received by the collecting Federal Reserve Bank one day in advance of payment through the gold-settlement fund. Beginning with the settlement for March 1 each Federal Reserve Bank and direct settling branch began telegraphing to the Board the gross amounts collected for the account of each other Federal Reserve Bank and direct settling branch before the final closing of the books for the day. The settlement is now made by the Board and telegrams are dispatched to each bank and direct settling branch so as to reach them in advance of the opening for business on the following morning, when the necessary entries are made and the books finally closed for the preceding day. Continued extension of the Federal Reserve Amounts of clearings and transfers through the gold-settlement by Federal Reserve Banks from Feb. 20, 1920, to May check-clearing system, both through the addi- fund 20, 1920, both inclusive. tion of banks to the par list and through the increased use of the system by member banks, Total clearings. Transfers. is evidenced by the volume of clearings effected through the gold-settlement fund during the Settlements of— three-month period ending May 20, 1920. Feb. 20-26 $1,418,059,453.47 $63,790,562.38 Feb. 27-Mar. 4. 1,895,533,571.19 Total clearings aggregated $21,756,273,548, an 68,240,994.67 Mar. 5-11 1,586,347,811.52 76,648,280.98, Mar. 12-18 increase of about 6 per cent over the previous 1,837,500,198.50 79,443,537.79 Mar. 19-25 1,788,766,292.08 157,915,618.74 record total of $20,586,346,000 reported for the Mar. 26-Apr. 1. 1,704,038,103.69 148,169,546.28 Apr. 2-8 1,575,107,400.72 three months ending February 19, 1920. 70,507,494.63 Apr. 9-15 1,705,828,748.22 93,081,098.42 Apr. 16-22 1,810,490,091.81 Transfers of funds between the Federal Re191,595,884.81 Apr. 23-29 1,607,169,703.21 127,194,895.89 serve Banks aggregated $1,472,168,693, as comApr. 30-May 6.. 1,556,394,664.48 154,428,112.69 May 7 - 1 3 . . . . . . . 1,532,103,551.90 104,808,287.68 pared with $1,616,126,000 for the three May 14-20 1,738,933,956.99 136,344,378.32 preceding months. The substantial decrease Total.. 21,756,273,547.78 1,472,168,693.28 in the volume of these transfers arises in part Previously reported for 1920. 11,277,236,059.70 966,485,397.86 from the smaller amounts transferred from the Total since Jan. 1,1920 33,033,509,607.48 2,438,654,091.14 Total for 1919 66,053,394,214.47 7,930,857,773.95 interior to New York on Government account. Total for 1918 45,439,487,000.00 4,812,105,000.00 The March 15 tax payments are reflected pri- Total for 1917 24,319,200,000.00 2,835,504,000.00 marily in the increased volume of clearings through the fund during the week ending March Clearings and transfers. 18, and to a lesser extent in interbank transfers Total for 1920 to date $35,472,163,698.62 during the week ending March 25. The record Total for 1919 73,984,251,988.42 Total for 1918 50,251,592,000.00 figures for clearings and transfers combined Total for 1917 27,154,704,000.00 for 1916 5,533,966,000.00 shown for the week ending April 22 result from Total Total for 1915 1,052,649,000.00 the larger volume of stock-exchange transacTotal clearings and transfers from May 20, tions in the New York market, payment for I 1915, to May 20,1920 193,449,326,687.04 634 JUNE, FEDERAL RESERVE BULLETIN. 1920. Changes in ownership of gold. Total to Feb. 20, 1920. Federal Reserve Bank. Decrease. Boston New Y o r k . . . Philadelphia Cleveland Richmond ' •" • Atlanta. Chicago St. Louis Minneapolis Kansas City Dallas...". San Francisco TotaJ Increase. .$21,736,559.82 $820,919,955.18 \ i 25,618,217.07 .128,055,716.56 I ; 32,565,720.82 ' 65,432,802.56 62,104,373.74 I 78,391,358.12 ! 7,049,792.92 I 38,473,581.51 I 47,222,057.66 i 314,269,774.40 I Total changes from May 20, 1915, to May 20, 1920. From Feb. 20, 1920, to May 20, 1920, inclusive. Balance to credit Feb. 19,1920, plus net deposits of gold since that date. $5,870, 165. 39 112,543, 697.24 16,482, 749.07 x 3,610,831.65 28,405,009.66 15,655, 772.49 109,299,620. 87 21,645, 550. 51 17,943, 523.04 35,909,377.93 17,564, 559.08 27,832, 147.39 Balance May 20, 1920. Decrease. Increase. $27,647,867.71 128,023,780.62 31,293,211. ~ 47,048,824.46 14,664,487.85 $13, 740,521. 81 6,449,879. 50 9, 205,892. 99 58,414,175.08 50, 885,445.79 9,388,893. 01 12, 256,657.50 8,292,274.68 9> 651,248.36 26,679,066.80 9, 230,311.13 7,619,011.86 9, 945,547.22 40,019,867.57 $21, 777, 702. 32 15,480,083.38 $805,439,871.? 14,810,462. 81 50,659,656.11 Increase. $43, 514,262.14 40,428,679.88 178,715,372,67 18,825,199.01 56,226,909.57 11,218,927.95 66,134,700.62 2,601,455.44 I 12,187,720.18 ! 820,919,955.18 i820, 919,955.18 405,541,341.02 405,541,341.02 114,915,624.80 114,915,624.80 1 Decrease. 29,243,270.38 37,276, 510.44 32«,457,4S4.58 808,041,327.24 '808,041,327.24 Excess ol withdrawals over balance j?eb. 19, 1920, and deposits since that dale. Combined statement from Feb. 20, 1920, to May 20, 1920, inclusive. GOLD SETTLEMENT FUND. Aggregate deposits and transfers from agent's fund. Debits. $40,524,109.00 44,446,940.00 32,107,755.00 42,896,265.58 28,930,735.00 18,650,485.00 13,195,267.50 1,500,000.00 484,805.00 7,232,355.00 27,000,000.00 $7,000,000.00 97,000,000.00 17,000,000.00 2,560,675.00 26,770,000.00 13,533,850.00 14,083,000.00 21,500,000.00 3,383,500.00 1,410,365.00 11,140,210.00 26,450,000.00 20,795,267.50 4,300,000.00 5,484,805.00 12,232,355.00 63,500,000.00 $7,000,000.00 117,000,000.00 18,500,000.00 2,560,675.00 26,770,000.00 13,533,850.00 34,083,000.00 30,200,000.00 4,383,500.00 3,410,365.00 15,140,210.00 59,210,500.00 $220,468,493.15 305,959,135.77 259,443,192.16 272,287,095.89 132,938,208.20 22,000,000.00 41,100,000.00 14,500,000.00 63,126,000.00 49,745,932.18 65,000,000.00 25,600,635.93 $91,929,327.77 207,894,615.74 249,462,952.90 110,467,070.74 164,094,072.72 22,999,754.50 189,667,060.81 122,001,976.27 88,772,056.83 70,989,932.45 114,887,938.33 39,001,934.22 111,468,717.08 241,831,600.00 313,868,717.08 331,792,100.00 1,472,168,693.28 1,472,168,693.28 Gold withdrawals. Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco. $39,394,274.39 39,990,637.24 30,090,504.07 36,724,758.93 30,565,744.66 20,772,407.49 75,216,620.87 12,240,818.01 17,860,023.04 37,983,817.93 14,656,704.08 32,121,647.39 $524,109.00 29,446,940.00 607,755.00 27,896,265.58 3,430,735.00 150,485.00 Total.... 387,617,958.10 Gold deposits. Settlements from Feb. 20,1920, to May 20,1920, both inclusive. Federal Reserve Bank of— Net debits. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total. Transfers. Aggregate withdrawals and transfers to agent's fund. Balance last statement, Feb. 19, 1920. Federal Reserve Bank of— Total debits. Total credits. Net credits. Balance in fund at close of business May 20,1920. $27,647,867.71 128,023,780.62 31,293,211.88 47,048,824.46 14,664,487.85 6,449,879.50 58,414,175.08 9,388,893.01 8,292,274.68 26,679,066.80 7,619,011.86 40,019,867.57 501,131,854.44 21,756,273,547.78 21,756,273,547.78 I 501,131,854.44 405,541,341.02 $44,896,386.33 10,205,647.49 199,452,506.60 119,758,633.77 35,297,305.19 30,474,311.40 59,833,485.55 1,213,578.11 Sumrrary of changes in ownership of gold by banks through transfers and settlements. Decrease. $1,725,978,533.56 $1,876,295,401.26 $150,316; 867.70 5,792,703,403.84 5,906,248,007.25 113,544, 603.41 2,007,035,695.51 2,031,826,397.58 24,790, 702.07 1,691,068,877.62 1,903,548,558.88 212,479, 681.26 1,858,964,384.23 1,814,067,997.90 689,879,509.66 700,085,157.15 3,062,631,961.05 2,863,179,454.45 1,706,569,800.03 1,586,811,166.26 484,069,787.54 519,367,092.73 1,256,414,288.87 1,225,939,977.47 737,142,164.78 677,308,679.23 698,312,188.41 697,098,610.30 Credits. $13,740,521.81 9,205,892.99 50,885,445.79 12,256,657.50 9,651,248.36 9,230,311.13 9,945,547.22 Increase. $21,777,702.32 15,480,083.38 14,810,462.81 50,659,656.11 12,187,720.18 114,915,624.80 114,915,624.80 JUNE, 1920. 635 FEDERAL RESERVE BULLETIN. Combined statement from Feb. 20, 1920, to May 20, 1920, inclusive—Continued. FEDERAL RESERVE AGENTS' FUND. Federal Reserve Agent at— Balance last Gold statement, Feb. 19,1920. withdrawals Boston New Y o r k . . . . Philadelphia. Cleveland Richmond Atlanta Chicago St.Louis Minneapolis.. Kansas City.. Dallas San Fran3isco. $60,000,000 105,000,000 67,889,260 80,000,000 33,000,000 50,000,000 200,144,500 51,930,600 19,300,000 33,860,000 17,484,000 76,153,500 $33,000,000 20,000,000 25,000,000 Total... 794,761,860 243,500,000 21,000,000 21,500,000 50,000,000 22,000,000 2,500,000 14,000,000 12,000,000 22,500,000 Withdrawals Deposits for through Total transfers transfers withdrawals. to bank. from banks. Gold deposits. $25,000,000 13,000,000 10,400,000 10,000,000 4,750,000 63,150,000 $40,000,000 15,000,000 31,500,000 15,000,000 25,500,000 18,500,000 $20,000,000 1,500,000 20,000,000 8,700,000 1,000,000 2,000,000 4,000,000 32,760,500 89,960,500 $33,000,000 40,000,000 26,500,000 Total deposits. Balance at close of business May 20,1920. 7,600,000 2,800,000 5,000,000 5,000,000 36,500,000 21,000,000 21,500,000 70,000,000 30,700,000 3,500,000 16,000,000 16,000,000 55,260,500 $65,000,000 15,000,000 31,500,000 15,000,000 25,500,000 18,500,000 13,000,000 18,000,000 2,800,000 15,000,000 9,750,000 36,500,000 $92,000,000 80,000,000 72,889,260 95,000,000 37,500,000 47,000,000 143,144,500 39,230,600 18,600,000 32,860,000 11,234,000 57,393,000 202,400,000 333,460,500 265,550,000 726,851,360 BANK TRANSACTIONS DURING APRIL-MAY. In the following table are shown debits to ending May 5, during which end-of-month individual account for the four weeks ending payments of dividends and interest increased May 19 of the present year and for the cor- the volume of check transactions, and the responding weeks of 1919, as reported to the smallest total of 9,348 millions—for the week Federal Reserve Banks by the country's more ending May 21, which saw an unusually small important clearing houses. A recapitulation volume of stock-exchange trading. The figures by Federal Reserve districts presents a com- for the four weeks of 1919, on the other hand, parison of figures for 153 centers for which show a constant increase from 7,638 millions uniform reports are available for each of the for the week ending April 30 to 9,056 millions for the week ending May 21. This increase in eight weeks under consideration. Fluctuations of the aggregate debits for check transactions is attributable to a conthe four weeks of the present year were siderable extent to the progress and concomparatively slight, the largest total of summation of the Victory loan campaign 9;587 millions being reported for the week which took place during that period. Debits to individual account at clearing-house banks. [In thousands of dollars.] * 1919 Week e n d i n g - 1920 Week e n d i n g Federal Reserve district. Apr. 28. No. 1—Boston: Bangor Boston Fall River Hartford Holyoke Lowell Manchester New Bedford New Haven Portland Providence Springfield Waterbury Worcester No. 2—New York: Albany Binghamton Buffalo New York Passaic Rochester Syracuse No. 3—Philadelphia: Altoona Chester Hamsburg Johnstown Lancaster Philadelphia.... Reading May 5. May 12. May 19. Apr. 30. May 7. May 14. May 21. 5,310 302,232 9,315 22,628 4,786 6,217 4 677 9,108 17,506 9,588 38,163 16,871 6,907 19,276 3,617 297,204 11,633 27,125 4,358 5,896 5,008 8,416 20,916 8 833 43,224 17,266 7,327 19,674 3,591 320,228 10, 298 29,768 4,113 6,297 5,055 9,710 21,121 8 411 40,429 15,397 7,203 20,209 3,837 318,040 10,064 24,509 4,835 7,022 5 194 11,430 20,337 8,694 45,762 19,966 8,771 21,991 2,294 221,380 6,740 18,792 2,646 4,365 3,156 245,267 8,676 22,906 2,757 4,774 3,354 245,172 8,689 20,799 2,026 4,072 3,501 293,825 8,302 23,058 3,376 5,011 6,255 15,007 6,286 16,186 6,492 16,579 7,783 16,518 29,511 9,399 5,588 12,017 27,284 9,128 5,857 12,957 33,517 9,932 6,714 15,753 34,813 11,014 6,390 19,194 25,561 4,143 61,824 5,008,128 5.934 30,788 16,684 36,897 4,613 69,781 4,830,094 4,940 34,662 18,852 28,623 4,884 68,499 4,666,599 5,583 31,221 16,348 22,058 4,908 72,054 4,515,498 6,207 35,298 19,709 22,888 3,232 56,783 4,130,527 3,255 23,451 12,651 3,685 5,303 4,322 4,274 5,381 350,597 5,920 3,291 5,708 3,933 4,588 5,840 365,058 5,278 3,692 5,705 . 3,800 4,384 5,488 377,033 5,540 3,485 5,688 3,846 3,938 5,952 378,693 5,905 2,539 4,091 4,500 3,212 4,325 275,981 3,520 27,679 3,308 57,300 4,075,444 3,644 27,449 14,292 3,104 4,285 4,370 3,404 4,573 298,083 4,047 22,336 3,392 55,526 4,668,252 3,627 24,718 11,913 2,980 4,393 4,527 3,206 5,059 296,010 4,859 31,357 3,522 60,817 4,992,589 4,125 30,040 11,181 2,855 4,813 4,386 3,714 5,260 301,608 4,372 636 FEDERAL RESERVE BULLETIN. JUNE, 1920. Debits to individual account at clearing-house banks—Continued. [In thousands of dollars.] 1920 Week e n d i n g - 1919 Week e n d i n g - Federal Reserve district. Apr. 28. No. 3—Philadelphia—Continued. Scranton Trenton Wilkes-Barre Williamsport Wilmington York No. 4—Cleveland: Akron Cincinnati Cleveland Columbus Dayton Erie Greensburg Lexington Oil City Pittsburgh Springfield Toledo Wheeling Youngstown No. 5—Richmond: Baltimore Charleston Charlotte Columbia Norfolk Raleigh Richmond No. 6—Atlanta: Atlanta ) — Augusta Birmingham Chattanooga Jacksonville Knoxville Macon Mobile Montgomery Nashville New Orleans Pensacola Savannah Tampa Vicksburg No. 7—Chicago: BayCity Bloomington Cedar Rapids Chicago Davenport Decatur Des Moines Detroit Dubuque Flint Fort Wayne Grand Rapids Indianapolis Jackson Kalamazoo Lansing Milwaukee Peoria Rockford Sioux City • South Bend Springfield Waterloo No. 8—St. Louis: Evansville Little Rock Louisville Memphis • St. Louis No. 9—Minneapolis: Aberdeen Billings Duluth Fargo - — Grand Forks Great Falls.... • Helena • Minneapolis St. Paul Sioux Falls Superior Winona May 5. May 12. May 19. Apr. 30. May 7. May 14, May 21. 4,724 12,992 13,303 9,393 4,105 8,328 4,247 16,362 12,269 8,311 4,352 8,489 4,746 12,514 14,176 8,140 3,609 8,474 4,926 12,276 9,058 6,952 3,112 9,164 3,355 10,339 9,073 6,901 4,133 9,907 3,744 12,384 9,790 6,611 3,860 8,555 3,299 11,854 10,603 6,418 3,356 11,110 4,088 23,127 54,889 150,646 27,732 11,672 7,137 5,195 5,423 2,925 217,975 3,561 31,769 10,339 14,232 23,161 63,102 164,926 26,737 12,425 9,232 4,503 5,511 3,634 194,905 3,059 30,926 8,852 13,465 29,968 58,550 159,309 26,722 12,286 7,732 3,710 5,496 3,223 193,550 3,645 33,264 8,839 13,524 32,752 67,385 176,820 29,388 12,135 8,064 5,317 5,209 3,267 186,193 3,207 44,777 7,982 12,046 17,400 45,379 126,974 20,736 10,192 5,960 2,110 4,410 2,390 171,517 3,041 23,314 7,381 12,820 18,056 51,968 139,576 24,268 11,117 5,869 2,176 4,913 3,063 143,648 2,671 27,430 7,674 12,400 20,427 49,745 129,950 24,694 10,814 6,252 2,575 4,930 3,028 150,524 2,941 26,572 7,994 12,424 21,616 59,204 141,096 26,513 14,088 6,899 2,750 5,020 3,940 172,256 2,752 36,077 8,465 13,021 101,380 10,755 9,225 6,338 13,565 4,430 34,230 115,737 11,706 8,513 8,248 22,134 3,800 36,904 102,794 11,300 9,050 7,520 18,113 4,700 23,499 113,920 11,980 10,510 8,832 20,091 4,800 27,957 69,595 6,995 5,500 5,283 16,792 7,800 20,665 81,709 9,352 5,400 6,508 21,852 4,100 21,281 78,666 7,857 5,600 6,627 18,477 3,600 20,732 82,195 8,417 5,900 6,811 21,110 3,300 29,635 29,190 9,399 16,699 11,193 13,260 6,687 6,625 8,153 4,084 26,528 89,098 1,945 16,731 5,222 1,958 33,249 10,873 19,833 13,008 15,653 7,421 8,542 10,104 5,223 26,248 85,934 2,707 19,464 7,596 2,308 32,912 9,115 17,273 12,374 14,744 6,893 7,149 9,305 5,023 28,684 74,003 2,280 18,490 6,991 2,320 37,323 8,976 17,468 14,359 15,233 7,462 8,633 9,577 5,285 27,556 80,372 2,780 17,641 7,061 2,060 23,907 6,276 10,031 7,205 10, 111 4,966 5,654 6,129 4,066 18,743 55,861 1,919 11,099 4,160 1,718 24,333 6,910 14,037 10,029 11,781 5,791 6,382 6,595 4,901 20,701 63,082 2,149 12,483 5,710 1,733 23,798 6,503 12,545 9,029 11,134 5,333 6,481 6,870 4,274 22,323 55,411 2,465 11,751 5,387 1,804 27,274 6,629 12,846 12,388 11,487 5,892 5,977 7,318 4,390 23,751 68,505 1,984 13,378 4,685 1,752 3,173 2,762 8,638 664,651 8,504 3,446 21,832 136,379 4,313 10,126 7,537 23,141 33,971 5,000 5,087 5,682 60,007 9,847 6,462 17,866 3,888 4,514 4,160 3,066 3,143 7,584 816,999 9,974 4,594 21,866 156,036 3,890 10,140 8,724 23,570 35,687 4,800 5,346 6,338 72,409 11,653 7,281 19,082 4,782 5,609 4,979 3,181 2,620 8,114 685,225 7,154 3,861 23,688 134,229 3,936 9,322 8,039 21,910 41,920 4,720 5,017 6,506 67,352 11,337 6,662 18,961 5,528 5,014 4,512 3,447 2,800 7,436 745,406 8,473 4,121 22,776 169,916 3,897 12,171 8,612 23, 581 44,253 5,813 5,197 74,400 11,324 6,391 17,698 5,739 6,379 4,371 2,175 3,062 3,345 584,085 6,992 3,424 17,118 103,144 2,342 5,615 5,140 17,630 27,470 3,457 2,974 4,182 45,344 10,793 4,209 15,438 3,174 5,614 3,425 2,600 2,636 6,994 640, 575 8,052 4,138 17,091 100,875 2,244 9,379 5,677 14,395 24,941 3,686 3,427 5,126 58,072 12,205 5,240 12,181 3,854 5,859 3,763 2,456 2,762 5,636 574,933 5,889 3,391 18,760 111,422 2,329 3,522 4,837 17,030 31,311 3,557 3,107 4,345 52,262 13,020 4,304 17,035 2,918 2,526 3,391 2,340 2,454 4,969 644,653 7,988 3,322 17,416 135,082 2,402 9,379 6,124 14,704 33,570 4,142 3,329 4,817 57,400 12,087 4,555 15,595 3,417 5,797 3,489 5,712 8,614 31,756 31,988 137,877 5,568 10,902 36,560 30,983 153,615 6,055 10,274 36,321 33,070 142,037 5,616 10,447 36,465 34,504 166,853 5,711 6,542 32,195 24,640 123,950 5,285 8,902 33,575 27,089 122,549 4,746 7,953 35,353 26,314 120,255 5,453 7,416 40,823 27,954 151,045 1,709 2,486 24,681 3,321 1,756 1,948 2,376 77,253 35,572 5,692 2,036 1,346 2,040 2,624 24,499 3,541 2,066 1,897 2,681 91,039 34,244 7,475 2,135 1,288 1,880 2,415 23,038 2,992 1,971 1,693 2,658 87,177 32,824 6,813 1,990 1,283 1,904 2,192 22,824 3,619 1,826 1,909 2,527 92,625 33,946 7,961 2,015 1,194 1,270 2,166 28,728 1,867 1,218 2,522 1,831 70,177 34,468 1,823 2,464 19,693 1,392 1,814 3,336 2,522 79,013 29,919 1,926 2,360 22,517 2,614 1,817 2,871 2,561 75,751 35,401 1,616 2,331 21,721 3,307 1,631 2,597 2,169 77,637 41,142 1.716 903 2,272 1,038 2,048 1,145 2,063 15,645 11,341 8,064 3 ~~~ , 1920. 637 FEDERAL, RESERVE BULLETIN. Debits to individual account at clearing house banks—Continued. [In thousands of dollars.] 1920 Week e n d i n g - Federal Reserve district. Apr. 28. No. 10—Kansas City: Atchison Bartlesvtlle Cheyenne Colorado Springs.. Denver Joplin Kansas City, Kans Kansas City, Mo... Muskogee Oklahoma City.... Omaha Pueblo St. Joseph Topeka Tulsa Wichita No. 11—Dallas: Albuquerque Austin Beaumont Dallas El Paso Fort Worth Galveston Houston San Antonio Shreveport Texarkana Tucson Waco No. 12—San Francisco: Berkeley Boise Fresno Long Beach Los Angeles Oakland Ogden Pasadena Portland Reno Sacramento Salt Lake City San Diego San Francisco San Jose Seattle Spokane Stockton Tacoma Yakima May 5. May 12. 1919 Week e n d i n g May 19. 557 3,644 1,327 3,192 43,707 3,433 3,297 79,627 5,137 19,720 57,293 4,065 23,037 6,487 32,006 13,260 556 5,171 1,961 3,344 49,616 3,934 3,993 88,865 5,494 22,435 61,381 4,075 25,869 6,644 26,540 13,949 507 4,950 1,852 3,684 45,882 4,165 3,543 89,362 4,599 26,265 60,218 4,501 23,885 5,723 28,575 14,426 615 3,096 1,815 3,114 43,433 3,942 3,369 97,843 5,009 23,598 75,067 4,969 18,546 6,087 28,215 14,694 1,650 3,617 5,314 34,296 9,115 26,602 9,100 40,000 8,878 9,202 2,153 1,682 3,890 2,082 3,796 4,556 39,596 11,085 25,054 8,170 32,022 8,284 5,557 2,509 1,975 3,815 1,821 3,941 4,914 37,287 11,127 22,357 2,408 2,474 8,816 5,287 2,601 3,079 7,098 5,223 90,611 19,454 4,120 5,283 44,771 2,517 12,176 19,142 7,867 207,869 4,810 49,354 13,669 4,186 12,371 3,462 20,549 3,482 5,572 42,943 2,839 13,038 17,453 7,110 214,729 4,422 42,680 12,523 3,593 11,807 3,656 Apr. 30. May 7. May 14. May 21. 2,601 2,3 2,890 2,841 2,309 30,074 2,605 3,461 87,312 3,224 11,059 46,758 2,827 19,960 4,742 20,209 8,799 2,603 35,313 2,772 3,509 105,666 2,833 13,287 55,216 4,637 21,276 4,388 17,470 11,868 3,291 34,313 2,964 3,034 88,625 3,116 11,740 59,147 5,192 21,495 4,766 20,621 9,792 4,032 35,642 3,214 3,556 95,147 3,124 12,587 64,965 4,473 20,742 5,178 19,928 9,864 33,879 8,437 13,214 2,279 2,008 4,158 2,020 3,441 5,066 42,081 11,111 24,983 9,266 39,149 8,450 10,151 2,525 2,130 4,365 919 2,890 4 141 30,599 7,500 16,009 6,032 26,612 1,772 4,362 3,616 31,813 7,192 18,359 7,710 30,146 1,491 3,863 3,631 29,534 7,447 18,948 5,571 26,420 1,676 4,507 4,011 33,665 7,639 22,595 6,502 29,395 5,203 1,333 1,909 2,650 5,700 1,291 1,787 2,345 5,672 1,818 1,661 2,750 6,086 1,920 1,728 2,941 3,556 4,093 10,307 6,226 102,490 23,091 4,193 6,517 50,524 2,953 15,118 17,468 9,521 223,072 5,593 48,407 12,860 6,240 12,443 3,778 2,892 3,249 12,359 5,395 86,256 23,386 2,791 6,415 47,162 2,863 12,077 16,998 8,504 228,314 5,784 52,707 14,217 5,719 13,047 3,411 1,952 2,401 5,561 3,248 67,070 11,967 4,115 3,059 37,136 2,633 12,000 14,143 4,443 144,082 3,589 37,892 8,380 3,801 2,449 2,642 6,108 3,225 75,656 13,981 4,097 3,966 46,975 2,606 12,669 14,845 6,515 159,257 3,868 37,542 9,891 5,793 10,361 2,163 2,216 2,774 6,809 3,527 64,340 13,481 4,002 5,094 41,314 2,366 12,423 15,049 5,309 165,587 3,501 47,212 11,597 6,090 12,314 2,170 %236 2,404 6,835 3,104 68,903 15,500 4,591 3,501 42,457 2,851 12,597 17,362 4,851 170,654 3,554 46,906 10,144 6,573 11,984 2,239 9,392 2,159 Recapitulation by Federal Reserve districts. [In thousands of dollars.] Federal Reserve district. Number ofcenters included. Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco. Total... 153 1920 1919 Week e n d i n g - Week e n d i n g - April 28. May 5. May 12. May 19. April 30. May 7. May 14. 458,319 5,153,062 431,082 566,622 179,923 246,772 1,050,986 215,947 154,484 297,905 146,621 523,460 466,656 L, 999,839 446,064 564,438 207,042 268,163 1,247,552 237,628 168,054 321,310 140,217 519,663 488,364 4,821,757 460,171 559,818 176,976 247,556 1,088,808 227,757 159,921 319,778 144,973 568,450 496,564 4,675,732 459,346 594,542 198,090 261,786 1,201,499 253,885 166,581 330,982 156,288 553,546 333,994 4,252,787 342,085 453,624 132,630 171,845 880,152 193,038 146,866 245,940 105,797 379,023 365,234 4,209,116 365,963 454,829 150,202 196,617 953,010 197,400 145,286 283,177 116,093 424,609 373,099 4,789,764 365,533 452,870 141,559 185,108 890,743 194,621 151,011 270,986 108,806 427,175 432,785 5,133,631 374,437 513,697 157,368 208,256 999,031 232,691 157,106 285,293 122,665 439,246 9,264,329 9,348,841 7,637,781 7,861,536 8,351,275 9,056,206 9,425,183 9,586,626 May 21. NOTE.—Figures for the following centers, while shown in the body of the statement, are not included in the recapitulation, complete data for these centers not being available for each week under review: Manchester, N. H.; Portland, Me.; Atchison, Kans.; Cheyenne, Wyo.; San Antonio, Tex.; Sioux Falls, S. Dak. 638 FEDERAL RESERVE BULLETIN. JUNE, 1920. DISCOUNT AND OPEN MARKET OPERATIONS OF THE FEDERAL RESERVE BANKS DURING MARCH, 1920. During the month of April discount operations of the Federal Reserve Banks were less heavy than during the preceding month, the total for April being $6,229,741,000, as against $6,970,331,000 for March, 1920, and $5,901,402,000 for April, 1919. These totals are exclusive of amounts of bills discounted for other Federal Reserve Banks, which were 328 millions during the month under review, 208 millions during the preceding month, and 253 millions during April of the past year. Considerably more than average reductions in discount operations for the month were reported by the Boston, New York, and Chicago banks, while the Philadelphia and Atlanta banks reported slightly larger totals than the month before, and the four western banks, those at Minneapolis, Kansas City, Dallas, and San Francisco, showed substantial increases in volume of discounts. Of the total bills discounted by the Federal Reserve Banks, the proportion secured by Government war obligations was about 77 per •cent, compared with 76 per cent the month before and 96 per cent in April, 1919. This class of paper, which constituted 95 per cent or more of the total discount operations of the Federal Reserve Banks during each month of the year 1919, except the last three months, shows a practically continuous relative decline since October of that year, and represents now little more than three-fourths of the banks' total discount operations. This decline is attributable in part to the discontinuance by some of the Federal Reserve Banks of preferential discount rates for paper secured by Liberty bonds and Victory notes, in part also to some liquidation by both member banks and Federal Reserve Banks. Of the member banks' collateral notes discounted war-loan paper still constituted all but a small fraction of 1 per cent, but of customers' paper rediscounted in March of this year only about 11 per cent was war-loan paper, while in April this proportion increased slightly to about 13 per cent. Discounts of trade acceptances totaled $15,305,000, compared with $23,383,000 for the preceding month and $8,071,000 for April, 1919. Of the total for the month under review all but $222,000 represented transactions in the domestic trade. Discounted bankers' acceptances totaled $28,162,000, or somewhat less than the month before, when they aggregated $34,485,000, these amounts being comparable with $420,000 shown for April, 1919, while discounts of commercial paper, secured otherwise than by Government war obligations or unsecured, to- taled $1,406,264,000 in April, as against $1,602,128,000 in March and $174,043,000 in April of the past year. In April, as in March, about 88 per cent of the discounts consisted of 15-day paper, i. e., paper maturing within 15 days after date of discount or rediscount with the Federal Reserve Banks. In April, 1919, this proportion was much higher, viz, 97 per cent. Six-month bills, composed of agricultural and live-stock paper, totaled $30,301,000, as against $19,931,000 for March and $12,640,000 for April, 1919. The average maturity of the paper discounted in April was 15.08 days, as compared with an average of 13.71 days for the month before and 11.07 days for the corresponding month of 1919. Average maturities were longer for paper discounted in April at nine of the Federal Reserve Banks, the Boston, Chicago, and San Francisco banks being the only ones at which average [maturities were shorter in April than in March. During the month under review 40 per cent of the discounts were at 5 per cent, 36.6 per cent at 5J per cent, and 23 per cent at 6 per cent, only about $16,860,000 of the paper discounted during April taking a rate of less than 5 per cent. The average rate of interest on paper discounted in April was 5.67 per cent, indicating a further slight advance above the average of 5.64 per cent for the month before, while in April, 1919, the average rate of interest was 4.18 per cent. Holdings of discounted * paper on the last Friday in April totaled $2,535,071,000, compared with $2,449,230,000 a month earlier and $1,950,412,000 at the end of April of the past year. Of the paper held at the end of the month about 58 per cent was paper secured by Government war obligations; at the end of the preceding month this proportion was 59 per cent, while at the end of April, 1919, it was about 90 per cent. Discounted trade acceptances held on the last Friday in April totaled $23,937,000, compared with $20,813,000 held at the end of March and $8,561,000 on the last Friday in April, 1919. Holdings of discounted bankers' acceptances were $48,251,000, as compared with $50,889,000 at the end of March and $981,000 on the last Friday in April of last year. Holdings of agricultural paper totaled $44,389,000, indicating a considerable increase over the total of $29,321,000 held about the end of the month before, and over the $34,088,000 shown for the last Friday of April, 1919. Holdings of live-stock paper also show an increase with the opening of the agricultural season, the total for the FEDERAL RESERVE BULLETIN. JUNE, 1920. end of April being $61,993,000, as against $45,344,000 for the end of March, and $32,793,000 for the last Friday in April, 1919. About 48 per cent of the agricultural paper was held by the Chicago bank, and most of the remainder by the other western banks, while the Federal Reserve Banks at Kansas City, Minneapolis, and San Francisco held 83 per cent of the total reported holdings of live-stock paper. During the month under review 54 banks were added to the membership of the system, the total number of members increasing from 9,227 to 9,281, while the number of banks accommodated through discount of paper increased from 3,670 in March to 4,175 in April. In the following table is presented the number of member banks in each Federal Reserve district at the end of March and of April of the current year and the number of member banks accommodated during each of these two months: Federal Reserve Bank. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St Louis Minneapolis.. Kansas City Dallas San Francisco Total . Number of member banks in district. Number of member banks accommodated. March. Apr. 30. Mar. 31. 432 769 684 857 596 435 1,395 556 952 1,054 779 772 433 767 683 857 594 435 1 385 551 936 1, 054 768 764 254 390 364 291 317 207 709 271 345 394 317 316 239 373 361 239 282 177 625 241 275 314 252 292 9,281 9, 227 4,175 3,670 April. Bills purchased in open market during April totaled $247,594,000, compared with $303,360,000 purchased in March and $140,639,000 in April, 1919. Of the total bills purchased during the month about 97 per cent were bankers' acceptances, and of these about 183 millions were based on for- 639 eign and about 56 millions on domestic trade transactions. Trade acceptances purchased during the month by the New York and San Francisco banks totaled $6,890,000, of which all but $388,000 were drawn in the foreign trade. In March purchases of trade acceptances totaled $4,900,845, while for April, 1919, a total of $3,361,136 of such purchases was shown. The average maturity of all the paper purchased by the Federal Reserve Banks during the month under review was 51.59 days, compared with 49.33 days for March and 41.96 days for April, 1919. The longest average maturity, 78.56 days, is shown for the Kansas City bank, while for the Boston bank it was only 37.87 days and for the New York bank, 44.98 days. Acceptances purchased in April carried rates varying from 5 to 6f per cent, the largest amounts having a 5 | per cent and a 5f per cent rate. The average rate taken by these bills works out at 5.82 per cent, comparable with 5.80 per cent the month before and 4.24 per cent for April of the past year. On April 30 the Federal Reserve Banks held a total of $407,247,000 of bills purchased in the open market, compared with $419,922,000 held on the last day of March, and $180,319,000 at the end of April of last year. Of the April, 1920, total $395,567,000 were bankers' acceptances, of which $270,808,000, or 70 per cent, were bills accepted by member banks, $46,292,000, or 11 per cent, were bills accepted by nonmember State banks and trust companies, $47,257,000, or 12 per cent, by private banks, and $31,210,000, or 7 per cent, by foreign banks and their agencies. Of the $11,680,000 of purchased trade acceptances held at the close of the month, $11,080,000 were bills drawn in the foreign trade and $600,000 bills drawn in the domestic trade. The New York and San Francisco banks are the only two banks reporting holdings of purchased trade acceptances at the close of the month under review. 640 JUNE, FEDERAL RESERVE BULLETIN. 1920. Total discount and open-market operations of each Federal Reserve Bank during the month of April, 1920. Federal Reserve Bank. Boston New York Philadelphia . Cleveland Richmond. Atlanta Chicago. St. Louis Minneapolis, Kansas City Dallas San Francisco Total, April, 1920 Total, April, 1919 Total, 4 months Apr. 30,1920 Total, 4 months Apr. 30,1919 ending ending Bills discounted for member banks. Bills bought in open market. United States bonds. $346,038,914 3,165,858,325 569,198,703 263,243,013 295,076,904 156,635,790 529,994,605 262,604,976 89,352,096 142,073,436 107,195,326 302,468,427 $29,156,307 93,743,642 902,076 23,206,857 5,485,364 4,209,404 23,265,636 4,159,051 2,451,469 131,347 1,756,675 59,036,555 6,229,740,515 5,901,401,640 247,594,383 140,638,909 900 1,300 25,958,782,101 1,153,714,069 223,050 22,350,283,593 United United States Total United States certificates of States Victory indebtedness. securities. notes. $900 633,202,264 1,327,725 Total. April, 1920. $83,264,000 754,010,000 26,513,500 47,016,000 27,000,000 1,002 726,500 10,958,500 19,087,000 2,965,500 9 000,000 16,601,000 $83,264,000 754,010,000 26,514,400 47,016,000 27,000,000 1,002 726,500 10,958,500 19,087,000 2,965,500 9,000,000 16,601,000 $458,459,221 4,013,611,967 596,705,179 333,465,870 327,562,268 160,846,196 553,986,741 277,722,527 110,890,565 145,170,283 117,952,001 378,105,982 997,143,002 83,842,000 997,143,902 83,843,300 7,474,478,800 April, 1919. $525,426,096 2,801,924,430 920,617,049 242,261,677 367,169,727 155,502,011 368,358,378 204,981,046 80,795,670 146,473,942 118,360,855 194,012,968 6,125,883,849 $4,900 3,440,202,002 3,440,429,952 30,552,926,122 1,327,309,500 1,328,637,225 124,312,124,082 i Includes $1,000 municipal warrants. Average amount of earning assets held by each Federal Reserve Bank during April, 1920, earnings from each class of earning assets, and annual rates of earnings on basis of April, 1920, returns. Average daily holdings of the several classes of earning assets. Discounted Purchased bills. bills. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total, April, 1920 Total, April, 1919 Boston , , Total, April, 1920 Total, April, 1919 Total. $168,210,619 788,358,533 206,739,972 173,477,248 94,259,242 104,877,874 418,928,840 108,473,060 69,886.000 109.548,051 70,813,444 126,802,533 $23,398,876 154,852,143 3,669,663 58,926,097 11,357,859 7,792,011 60,447,655 4,659,171 5,824,000 766,271 1,269,415 86,782,670 $25,551,066 95,357,662 33,092,423 26,149,650 14,527,933 15,781,937 44,120,533 18,917,083 9,343,000 22,203,266 12,632,667 14,146,917 $217,160,561 1,038,568,338 243,502,058 258,552,995 120,145,034 128,451,822 523,497,028 132,049,314 85,053,000 132,517 588 84,715,526 227,732,120 2,440,375,416 1,919,460,726 419,745,831 208,905,396 331,824,137 213,358,162 3,191,945,384 2,341,724,284 Earnings from— New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco United States securities. Discounted bills. Purchased bills. $763,768 3,506,330 924,717 789,825 436,955 482,949 1,973,258 510,774 334,487 530,539 320,827 586,496 $111,841 725,977 17,096 276,666 54,690 36,819 282,456 20,258 24,121 3,446 6,258 402,436 $42,627 168,201 57,251 44,199 23,964 26,049 75,953 32,579 15,492 40,082 21,817 23,696 11,160,925 6,566,734 1,962,064 726,626 571,910 426,110 United States securities. Calculated annual rate of earnings from— Total. $918; 4,400, 999. 1, HO! 515', 545! 2,33i; 563. 374; 574! 348: 1,012: 13,694,899 7,719,470 Discounted bills. Purchased bills. United States Total. securities. Per cent. Per cent. Per cent. Per cent. 5.54 5.83 2.04 5.16 5.41 5.63 2.15 5.16 5.47 5.68 2.11 5.01 5.54 5.71 2.06 5.23 5.64 5.86 2.01 5.22 5.62 5.77 2.01 5.18 5.75 5.70 2.10 5.43 5.73 5.29 2.10 5.19 5.84 5.05 2.02 5.37 5.91 5.49 2.20 5.29 5.51 5.90 2.10 5.02 5.64 5.66 2.04 5.42 5.58 4.16 5.70 4.23 2.10 2.43 5.23 4.01 JUNE, 1920. 641 FEDERAL RESERVE BULLETIN. Bills discounted during the month of April, 1920, distributed by classes; also average rates and maturities of bills discounted by each Federal Reserve Bank. Federal Reserve Bank. Boston New York Philadelphia Cleveland Richmond Atlanta.. Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total, April, 1920, Total, April, 1919. 1 2 Member banks' collateral notes. Customers' paper secured byGovernment war obligations. Secured by Government war obligations. $15,260,650 $289,619,900 96,535,594 2,355,810,380 47,348,994 417,403,315 11,529,638 201,812,010 4,818,940 266,025,850 4,316,121 113,153,560 9,595,202 332,628,900 9,401,973 134,781,096 43,325,750 3,916,701 86,072,762 4,479,364 86,525,461 2,059,004 3,531,196 231,120,505 Otherwise secured. Trade acceptances. Bankers' acceptances. 12.88 8.93 16.39 17.56 12.25 26.68 32.18 23.47 39.94 36.31 25.54 15.72 Per cent. 5.60 5.48 5.46 5.71 5.59 5.68 5.77 5.78 5.81 6.55 5.66 5.70 15,305,488 28,162,156 1,406,264,089 6,229,740,515 8,071,368 419,576 174,043,309 5,901,401,640 15.08 11.07 5.67 4.18 875,000 813,000 359,000 770,000 137,450 5,059,500 1,000 302,000 448,894 135,000 572,837 100,000 3 820,194 I 6,249,692 212,793,377 4,558,279,489 8,935,916 157,368,694 5,536,441,826 25,056,867 Average Average maturrate ity in (365-day days. basis). Total. $39,837,677 $346,038,914 697,116,877 3,165,858,325 104,180,533 569,198,703 45,234,612 263,243,013 22,511,853 295,076,904 35,100,938 156,635,790 180,257,184 529,994,605 116,442,936 262,604,976 41,321,699 89,352,096 45,877,916 142,073,436 17,937,024 107,195,326 60,444,840 302,468,427 $288,274 $1,032,413 13,165,432 213,220,042 233,260 32,601 3,298,570 493,183 907,261 1,459,711 2,246,460 2,643,754 4,099,565 1,288,321 553,200 $10,000 All other discounts. Includes $98,327 in the foreign trade. Includes $103,074 of dollar exchange bills. 3 Includes $123,750 in the foreign trade. Bankers1 and trade acceptances in the foreign and domestic trade and dollar exchange bills purchased during the month of April, 1920; also average rates and maturities of total bills purchased by each Federal Reserve Bank. Bankers' acceptances. Federal Reserve Bank. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco In the domestic trade. In the foreign trade. Trade acceptances. Total Dollar bills exchange. purchased. Average maturity in days. $7,370 $29,156,307 695,240 93,743,642 992,076 204,012 23,206,857 5,485,364 4,209,404 200,000 23,265,636 4,159,051 2,451,469 131,347 1,756,675 646,056 59,036,555 37.87 44.98 63.79 57.02 62.11 58.43 63.03 58.66 65.30 78.56 60.27 59.15 Per cent. 5.90 5.77 5.94 5.81 6.03 6.08 5.87 5.69 5.07 5.69 6.08 5.82 388,343 6,501,967 6,890,310 1,752,678 247,594,383 406,114 140,638,909 246,799 3,114,337 3,361,136 51.59 41.96 5.82 4.24 In the domestic trade. Total. In the foreign trade. Total. $8,908,329 $20,240,608 $29,148,937 17,988,699 72,014,129 90,002,828 $298,067 $2,747,507 $3,045,574 992,076 276,930 715,146 5,423,677 17,579,168 23,002,845 5,485,364 2,070,856 3,414,508 4,209,404 2,217,310 1,992,094 5,772,274 17,293,362 23,065,636 4,159,051 2,189,880 1,969,171 2,451,469 600,000 1,851,469 131,347 30,000 101,347 1,756,675 1,506,675 250,000 54,545,763 9,133,193 45,412,570 90,276 3 , 7 5 4 , 4 6 0 3,844,736 Total, April, 1920.... 56,189,170 •182,762,225 238,951,395 Total, April, 1919.... 47,451,019 89,420,640 136,871,659 Average rate (365-day basis). Discounted bills, including member banks' collateral notes, held by each Federal Reserve Bank on the last Friday in 1920, distributed by classes. April, [In thousands of dollars.] Federal Reserve Bank. Agricultural paper. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco. 3 396 189 125 1,279 1,567 21,562 672 3,981 5,484 3,776 5,355 Total, April, 1920 Total, April, 1919 Per cent, April, 1920 Per cent, April, 1919 44,389 34,088 1.8 1.7 Member banks' colCustomers' lateral notes. paper Live-stock secured by Secured by Governpaper. GovernOtherwise ment war ment war secured. obligations. obligations. 11,303 29,914 7,811 10,289 33,353 171,689 63,581 17,902 10,553 6,187 15,887 13,961 6,922 6,179 1,358 4,273 55,528 463,092 118,241 93,179 45,431 54,405 121,604 43,928 8,836 20,357 40,326 48,548 61,993 32,793 2.4 1.7 351,845 201,553 13.9 10.3 1,113,475 1,559,119 43.9 79.9 7 184 38 560 "i'.m Trade acceptances. Bankers' accept' ances. 505 358 110 410 694 363 1,060 440 190 584 5,634 448 5,083 1,282 • 1,818 4,362 1,474 205 865 728 1,454 4,020 19,994 965 370 4,130 20,546 0.2 1.1 23,937 8,561 0.9 0.4 All other discounts. Total. 105 186 6,846 63,597 195,971 25,765 58.361 35,921 46,170 249,237 47,907 43,749 46,661 18,927 54,785 157,085 856,776 209,196 175,709 94,862 114,207 424,897 111,063 75,359 110,625 73,552 131,740 48,251 981 1.9 0.1 887,051 92,771 35.0 4.8 2,535,071 1,950,412 100.0 100.0 3,390 11,835 540 642 FEDERAL RESERVE BULLETIN. JUNE, 1920. Acceptances purchased by each Federal Reserve Bank and held on Apr. 30, 1920, distributed by classes of accepting institutions. [In thousands of dollars.] Bank acceptances. NonNonMember member member trust State banks. companies. banks. Federal Reserve Bank. Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco. Totals: Apr. 30,1920.. Mar. 31,1920.. Feb. 28, 1920.. Jan. 31, 1920.. Apr. 30, 1919.. Apr. 30, 1918.. 24,066 87,999 2,681 32,406 11,508 7,330 51,548 2,528 6,217 461 1,968 42,096 135 970 1,051 29,255 75 9,510 270,808 282,339 364,940 383,375 140,034 248,390 1,237 1,389 2,100 6,134 2,975 654 Trade acceptances. Foreign bank Private branches banks. and agencies. Total. Domestic. Foreign. 630 105 20 1,712 62 260 4,484 9,939 11,378 28,583 155,527 2,842 56,312 11,508 7,330 54,150 2,695 6,237 461 1,968 67,954 45,055 55,390 70,127 68,592 12,321 2,907 47,257 51,012 60,218 61,218 14,196 25,921 31,210 23,654 33,440 36,203 8,230 10,304 395,567 413,784 530,825 555,522 177,756 288,176 3,331 22,831 161 9,221 14,472 "5*i66' 578 22 Grand total. 4,326 4,904 6,754 I 6,776 28,583 160,431 2,842 56,312 11,508 7,330 54,150 2,695 6,237 461 1,968 74,730 11.680 6 138 5,380 6,488 2,563 9,279 407,247 419,922 536,205 562,010 180,319 297,455 11,080 5,566 4,800 4,595 2,505 9,151 600 572 580 L,893 58 128 Total. OPERATION OF THE FEDERAL RESERVE CLEARING SYSTEM, APR. 16 TO MAY 15, 1920. [Amounts in thousands of dollars.] Items drawn on banks in own district. Located in Federal Reserve Bank and branch cities. Federal Reserve Bank or branch. Number. B oston New York Buffalo Philadelohia Cincinnati Pittsburgh T-Lichmond Baltimore Atlanta - --Birmingham Jacksonville Nashville New Orleans Chicago Detroit St Louis Little Rock Louisville Memphis Minneapolis Kansas Citv Denver Omaha Dallas El Paso... Houston San Francisco Portland Salt Lake City Seattle... Spokane Number. Amount. 715,690 2 756,493 671,443 1,047,649 2,160,316 3 625,218 102,212 323,342 146,904 880,815 1 792,394 1 ,345,154 262,141 1 000,032 287,375 149,696 696,493 136,064 306,492 722,985 315,345 167,885 539,881 1 198,503 - ... 174,234 636,826 190,531 338,784 89,926 95,268 25,804 134,497 39.815 24,116 128,630 43,073 198,521 40,503 53,565 64,2S9 108,987 49,736 792,207 102,036 726,664 193,170 305,125 191,114 268,829 1 216,355 226,755 32,049 268,800 43,554 71,903 357,532 74,331 41,720 167,767 65,680 154,009 1 380,803 209,449 371,016 2 447,248 490,106 59,226 292,271 69,318 70,502 475,171 *95,083 88,638 1 302,587 92,073 13,711 40,635 137,523 43,030 310,147 59,369 99,440 111,915 217,951 376,130 9S,237 71,072 35,541 118,549 47,991 32,145 401,923 37,705 47,020 162,905 61,425 20,557 26,551 148,538 470,549 1,376,778 57,305 259,062 183,332 90,208 107,021 292,148 76,110 75,249 14,778 18,369 26,415 18,337 436,535 46,408 117,023 26,710 30,722 14,398 122,337 281,340 24,047 45,239 264,866 14,651 40,557 25,419 36,800 10,633 35,768 17.2^7 12,778 124,654 879,682 15,121 196,513 53,812 54,056 46,792 49,986 58,056 31,212 12,915 10,260 15,863 18,241 344,094 36,154 150,445 7,863 36,781 10,744 38,092 143,467 20,403 54,277 25,005 40,823 85,294 45,806 19,946 17,403 11,108 24,894 9,476 27, 192.494 28,224,783 25,024.809 23, 003.659 15,957,968 4,669,179 5,055,423 5,135,263 4,748,036 3,327,502 2,689,238 2,192,547 1,565,995 1,697,090 4,058,521 ......... . Total: Apr. 16 to May 15,1920 Mar. 16 to Apr. 15 Feb. 16 to Mar. 1 5 . . . Jan. 16 to Feb. 14 •Ipr. 16 to May 15,1919 Amount. Located outside Federal Reserve Bank and branch cities. Total Items drawn on Treasurer of United States. 1 7 ,288,380 7 ,932,646 .971,752 ,161,522 4 ,329,455 7,669,914 8,512,045 7,509,756 7,210,635 5,273,641 Number. Amount. Number. 1920 1919 Amount. 1920 39,202 3,552,590 2 ,851,150 1 225,441 194,974 5,552,549 5 ,161,930 3 732,068 2,924 162,441 485,367 37,286 3,334,061 2 ,501,840 177,163 8,074 1,341,269 453,547 904,703 4,989 886,613 244,893 618,693 6,209 1,085,122 419,722 713,311 5,501 1,688,370 1 ,037,459 465,534 8,802 259,146 885,413 420,118 170,840 5,665 465,264 550,570 1,450 187,227 42,032 152,951 1,898 181,963 130,083 44,383 1,728 267,949 68,646 3,739 176,964 86,375 163,248 30,127 4,172,794 <p ,724,682 1 258,869 12,975 532,393 252,553 158,064 13,037 1,593,555 1 ,099,124 398,889 1,588 320,217 120,438 60,347 4,110 468,644 106,735 202,784 1,378 244,191 57,496 122,879 5,042 1,628,344 281,388 810,947 7,144 3,080,821 1 ,514,882 659,500 2,526 381,992 260,959 85,799 1,827 117,568 624,531 179,607 4,368 1,419,665 640,172 357,872 2,325 218,981 161,534 30,687 2,898 4,54,810 86,485 45,817 170,676 375,672 324,217 6 243 494,313 114,115 5,024 51,198 129,220 183,943 1,895 450,736 360,607 69,808 8 099 249,224 182,053 72,406 774 184,565 147,719 34,109 479,638 882,565 511,566 561,056 1,168,625 1919 878,282 3,626,970 864,127 323,428 168,815 292,202 346,036 162,309 146,168 23,972 29,522 61,182 902,330 90,966 302,823 24,618 74,759 33,220 167,606 449,729 40,507 41,116 255,414 21,122 242,521 50,969 57,329 71,075 20,651 12.818.731 14 450,033 156,585 1? 519,727 37,170,112 38,399,976 33,562,556 30.862,271 24 ,345,944 Includes 5,113 items, amounting to $6,730,000, forwarded directly to banks in Baltimore. 9,769,768 JUNE, 1920. 643 FEDERAL RESERVE BULLETIN. Operation of the Federal Reserve clearing system, Apr. 16 to May 15, 1920—Continued. [Amounts in thousands of dollars.] Number of business days in month. eral Reserve Bank or branch. 1920 Number. 1919 Boston New York Buffalo Philadelphia Cleveland Cincinnati Pittsburgh... Richmond Baltimore Atlanta Birmingham. Jacksonville.. Nashville New Orleans. Chicago Detroit St. Louis Little Rock... Louisville Memphis Minneapolis Kansas City Denver Omaha Dallas. El Paso Houston San Francisco Los Angeles Portland Salt Lake City. Seattle Spokane Items forwarded to other Federal Reserve Banks and their branches. 12,823 64,724 119,583 153,934 24,248 15,983 37,133 23,149 35,908 287,878 8,587 24,341 8,494 8,717 1,921 82,119 268,686 64,964 35,458 113,025 21,430 22,367 25,335 26,060 2,241 4,988 13,499 5,776 90,500 633,880 35,257 231,399 34,660 11,638 46,748 69,733 117,084 21,252 12,104 8,728 6,358 14,736 41,928 6,483 10,673 2,403 2,803 789 41,104 78,265 20,360 9,733 43,436 9,591 21,896 5,878 6,904 2,033 22,227 5,658 4,536 1 3,258,336 2 3,817,860 34 3,376,201 3,039,528 5 2,208,209 1 1,483,960 2 1,820,485 3 1,565,308 * 1,476,733 M,271,254 1,023,522 146,675 727,193 31,723 26 Total: Apr. 16 to May 15, 1920.. Mar. 16 to Apr. 15, 1920. Feb. 16 to Mar. 15, 1920. Jan. 16 to Feb. 15, 1920. Apr. 16 to May 15,1919.. Number of member banks in district May 15. Amount. Number of nqnmember banks on par list May 15. Federal Reserve district. 1920 1919 1920 432 772 687 858 598 435 1,386 559 954 1,057 786 779 426 729 666 822 570 424 1,346 519 875 1,003 741 665 254 321 422 1,078 766 444 4,235 2,513 2,913 3,374 1,241 941 243 319 356 797 299 301 2,925 1,356 1,293 2,248 240 911 Total... 9,303 8,786 18,502 11,288 Number. Amount. 27,099 32,329 11,476 24,022 47,073 9,133 29,578 4,131 9,699 58,904 24,880 9,474 11,261 7,591 12,619 7,571 24,417 27,136 1,173 4,800 15,219 5,872 8,076 2,292 9,855 14,220 45,678 2,612 2,223 1,408 6,324 5,234 3,996 5,461 1,219 1,607 76,704 43,426 17,869 67,045 15,724 11,354 64,373 15,109 21,629 6,986 25,851 16,193 14,010 17,783 8,895 26,078 3,566 3,524 14,007 4,298 3,540 7,897 5,187 6,374 717,301 856,331 748,029 715,958 404,008 234,308 318,048 275,337 277,877 195,016 Number of incorporated banks other t h a n mutual savings banks not on par list May 15. 1919 Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis.. Kansas City.. Dallas San Francisco 1 Includes 5,926 items, amounting to 11,741,000, 23 Includes 6,475 items, amounting to $1,869,000, Includes 5,695 items, amounting to $1,826,000, 4 Includes 5,215 items, amounting to $2,015,000, 5 Includes 3,622 items, amounting to $2,863,000, Items forwarded to parent bank or to branch in same district. forwarded direct to member banks in other Federal Reserve forwarded direct to member banks in other Federal Reserve forwarded direct to member banks in other Federal Reserve forwarded direct to member banks in other Federal Reserve forwarded direct to member banks in other Federal Reserve 1919 1920 770 1;135 102 2,180 i districts. districts. districts. districts. districts. 50 249 1.093 i;274 1,245 1,269 1,556 995 152 7,883 FEDERAL RESERVE PAR POINT MAP, JUNE 1,1920. a I JIU banks in fotlowingXft.&istricts JM banks mStates shown in white are onjtar list, and figures indicate total number of banks in Sttzte. States in which, all non-member banks are not on jiartist, shown thus Ujif&r figures indicate total number of banks on par Cist, and lower figures uidicale number of non ~me?nber banJcs not on jtar list. 2)uring May following State? became alljuzr.- Washington, Oregon,, •Arizona,. JTs 4.Cleveland, Jfs7. Chicago, Jfe9. Minneapolis, JKHO.JCansasCtoy, jn>/l.- Dallas, JUNE, 1920. FEDERAL RESERVE BULtLETIN. 645 OPERATIONS OF THE FEDERAL RESERVE BANKS. Discount operations of the Federal Reserve Banks during the four weeks between April 23 and May 21 moved within moderate limits, with the result that the Federal Reserve Banks' May 21 holdings of discounted paper of all classes, 2,500.4 millions, were only 22.2 millions larger than four weeks before. Weekly changes in the total holdings are due apparently largely to calls of the Treasury for funds held with depositary institutions, and the increases in total discounts on April 30 and May 14 coincide with substantial reductions in Government deposits shown by "reporting'7 member banks. Of the total discounts held, the share of war-loan paper continued, with little change, around 58 per cent during the period under review. Little change is also shown in the amounts of the several classes of war paper held. Thus holdings of bills secured by Liberty bonds increased from 677.5 millions on April 23 to 713.9 millions on May 14 and on the following Friday declined to 669.7 millions, or slightly below the total held at the beginning of the period. Holdings of paper secured by Victory notes show a decline from 292.2 to 274.3 millions,while paper secured by Treasury certificates increased from 479.1 to a maximum of 509.2 millions on May 14, and on May 21 stood at 502.7 millions, or 23.6 millions above the total reported four weeks earlier. About two-thirds of the total amount of war paper held during the four weeks under review was secured by Liberty loans and Victory notes and about one-third by Treasury certificates. About 57 per cent of the paper held on May 21 is composed of paper maturing within 15 days from date of report, as against slightly over 58 per cent four weeks earlier. Sixty-day paper shows a relative gain of 2 per cent, while both 30 and 90 day paper show slight relative losses. Six-month paper on hand increased from 31.4 to 55.7 millions, the Federal Reserve Banks at Minneapolis, Kansas City, Dallas, and San Francisco reporting by far the larger share of the total increase. Holdings of acceptances purchased in open market show a slow though steady increase from 404.6 to 417.4 millions, Federal Reserve rates for this class of paper, as compared with Federal Reserve discount rates and New York market rates apparently proving sufficiently attractive to banks and dealers. Differences in the totals of Treasury certificates represent largely purchases of certificates by the New York bank for the temporary accommodation of nonmember banks. Discounted bills held by the several Federal Reserve Banks include amounts held under discount for other Federal Reserve Banks. Dur- m _ the four weeks the amounts of paper thus held fluctuated between 149.6 millions on April 30 and 110.3 millions on May 14, and on May 21 stood at 146.1 millions, or 3.2 millions above the April 23 total. On May 21 the total held under discount for seven Reserve Banks in the South and Middle West was distributed among the Boston, New York, and Cleveland banks. The Dallas bank, which on April 23 reported 5 millions held under discount for other Federal Reserve Banks, four weeks later reports a contingent liability of 10 millions on paper rediscounted with other Federal Reserve Banks. The Philadelphia bank, which on April 23 had a total of 23.4 millions of rediscounted paper outstanding, no longer figures in the list of rediscounting Reserve banks, which on May 21 was composed of the Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, and Dallas banks. During the same period holdings of acceptances purchased from other Federal Reserve Banks declined from 8.4 to 6.7millions, the smaller amount comprising bills held for three Federal Reserve Banks by the New York, Cleveland, and San Francisco banks. The New York bank continues to report a contingent liability of 16.2 millions as guarantor on bills purchased for foreign correspondents. The effect of the application of the graduated discount rates by the Kansas City Reserve Bank is seen in a wider distribution of accommodation among member banks rather than in any pronounced reductions of borrowings from the Federal Reserve Bank. As a matter of fact, the total bill holdings of the Kansas City Federal Reserve Bank increased during the past four weeks from 108.5 to 111.7 millions, while the bank's own borrowings from other Federal Reserve Banks increased from 11.8 to 14.2 millions. During the last week both the St. Louis and Dallas banks announced their plans of putting into effect a system of graduated rates constructed upon a basis somewhat different from that adopted by the Kansas City bank. Members' reserve deposits fluctuated between 1,818.6 millions on May 7 and 1,874.1 millions a week later, while Government deposits varied between 22.4 and 44.2 millions on the same dates. Fluctuations in net deposits were coincident with fluctuations in total discounts, the high level of 1,839.4 millions in net deposits on May 14 corresponding to a maximum of 2,551.3 millions of discounts reported under that date, and a decrease of 51 millions in discounts a week later being accompanied by an almost equal decline in net deposits. Federal Reserve note circulation shows an expansion during the four weeks 646 JUNE, 1920. FEDERAL RESERVE BULLETIN. of 16.9 millions, while the banks' liabilities on Federal Reserve bank notes shows a further reduction of 3.2 millions. Since January 2, the Federal Reserve Banks' liabilities on these notes show a reduction of 81.2 millions, as against an increase of 86.3 millions in the banks' liabilities on Federal Reserve notes. Gold reserves, because of further export withdrawals for shipment largely to South America and the Far East, show a reduction since April 23 of about 10 millions, while total cash reserves, in consequence of some gains in silver and legals, show a loss of only 4.1 millions. Fluctuations in the reserve percentages were within the narrow limits of 43 per cent on April 23 and 42.2 per cent on May 14. A week later, in consequence of a reduction in discounts held and in net deposits, the reserve percentage rose to 42.7 per cent. During the period under review the paid-in capital of the Federal Reserve Banks increased by about 2.5 millions. This increase reflects in the first place the considerable growth of capital and surplus accounts of existing member banks, and, to a smaller extent, gains in membership. Since the beginning of the year the total paid-in capital of the Federal Reserve Banks shows an increase of 6.4 millions, the New York, Chicago, and San Francisco banks reporting the largest gains under this head. Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Apr. , • to May 21, 1920. RESOURCES. [In thousands of dollars.] Boston. Gold and gold certificates: Apr.30 May7 May 14 May21 Gold settlement fund, Federal Reserve Board: Apr.30 May7 May 14 May 21 Gold with foreign agencies: Apr.30 May7 May 14 May 21 Gold with Federal Reserve agents: Apr.30 May7 May 14 May 21 Gold redemption fund: Apr.30 May7 May 14 May 21 Total gold reserves: Apr.30 M M7a y , May 14 May2l Legal-tender notes, silver, etc.: Apr.30 May7 May 14 May 21 Total reserves: Apr.30 May7 May 14 May21 Bills discounted:1 Secured by Government war obligationsApr. 30 May7 , May 14 May 21 All otherApr. 30 May7 May 14 May 21 Bills bought in open market:8 Apr.30 , May7 May 14 May 21 New York. Philadelphia. Cleveland. 1,049 1,063 1,041 1,058 10,331 10,361 10,063 10,168 Chicago. San St. Minne- Kansas Louis. apolis. City. Dallas. Francisco. 11,588 11,661 11,762 11,915 83,532 85,520 83,861 81,488 34,787 20,859 19,274 25,682 63,545 88,713 84,955 118,278 8,233 8,233 8,233 8,233 41,390 41,390 41,390 41,390 9,023 9,023 9,023 9,023 9,248 9,248 9,248 9,248 5,526 5,526 5,526 5,526 4,060 4,060 4,060 4,060 13,421 13,421 13,421 13,421 5,301 5,301 5,301 5,301 3,045 3,045 3,045 3,045 119,072 116,316 113,788 111,279 317,217 306,316 305,072 294,136 87,503 86,539 87,674 86,811 142,813 143,961 143,609 144,129 40,914 39,436 37,780 38,646 54,521 53,410 52,090 52,199 160,315 157,409 155,067 150,989 44,399 44,752 45,789 45,663 33,487 33,070 33,206 33,063 11,529 26,998 12,093 27,000 12,514 26,994 12,882 1,439 3,458 5,024 6,388 6,899 7,780 8,790 9,880 5,767 6,849 7,536 6,665 35,104 37,537 39,300 42,850 8,070 7,854 6,262 5,989 610 280 163 43 5,352 3,976 4,485 5,387 19,218 21,341 23,397 25,053 2,299 2,309 2,343 2,364 29,365 59,778 19,846 28,699 55,422 18,717 30,144 60,228 20,844 27,984 42,427 18,955 24,346 9,094 24,404 9,098 24,271 9,218 24,962 3,940 3,087 3,692 3,458 7,262 7,237 7,256 7,273 566 598 589 607 8,196 6,150 5,983 5,977 Total. 12,463 11,199 11,249 11,247 174,561 172,683 171,208 169,735 8,521 70,580 9,762 5,749 28,688 6,528 38,854 5,708 71,152 10,980 10,167 29,906 10,459 41,969 6,973 68,876 13,209 6,967 26,679 8,226 42,774 6,557 65,899 12,504 9,231 29,091 6,744 36,537 376,003 392,751 389,149 399,889 5,413 5,413 5,413 5,413 2,933 2,933 2,933 2,933 5,188 5,188 5,188 5,188 112,781 112,781 112,781 112,781 34,646 27,541 75,500 1,137,928 37,603 28,772 73,727 1,121,311 36,646 27,935 77,246 1,115,902 35,302 26,813 79,793 1,098,823 4,195 10,278 4,580 9,308 5,079 10,551 5,716 10,642 135,447 142,054 150,101 158,489 192,898 178,410 176,454 182,162 532,670 548,937 542,278 562,286 138,469 137,417 140,396 137,758 223,609 222,450 228,172 212,360 75,484 73,768 75,283 75,371 81,858 79,121 79,757 78,699 303,766 303,923 300,935 298,121 71,472 71,974 74,253 72,915 50,153 53,799 50,637 52,655 74,665 77,496 73,812 75,800 49,393 52,894 50,156 48,183 142,283 141,391 147,008 143,407 1,936,720 1,941,580 1,939,141 1,939,717 6,949 7,356 9,179 9,652 106,328 106,812 106,889 106,447 704 160 297 134 1,424 1,249 1,702 1,718 431 332 92 77 1,634 1,625 1,350 1,324 8,766 9,364 9,531 10,097 5,125 4,854 7,164 7,216 70 91 83 269 1,169 1,239 1,276 1,282 844 828 1,062 1,100 601 597 627 505 134,045 134,507 139,252 139,821 199,847 185,766 185,633 191,814 638,998 655,749 649,167 668,733 139,173 137,577 140,693 137,892 225,033 75,915 83,492 312,532 76,597 223,699 74,100 80,746 313,287 76,828 229,874 75,375 81,107 310,466 81,417 214,078 75,448 80, 023 308,218 80,131 88,881 99,645 103,730 101,511 634,781 590,561 618,197 572,569 181,822 183,109 189,880 188,481 111,081 109,676 110,366 116,744 68,204 66,411 75,010 68,303 221,995 222,387 216,883 216,557 28,583 32,652 33,099 35,143 160,431 162,825 170,100 171,529 55,984 56,562 57,881 57,992 60,592 60,880 61,544 59,171 137,491 145,876 157,821 153,609 27,374 64,628 38,878 53,615 287,406 23,135 64,226 36,880 55,736 271,022 24,204 57,022 38,193 55,889 266,984 24,464 57,963 35,845 58,446 268,919 2,842 56,312 11,508 2,918 56,109 11,673 2,638 55,162 10,431 2,592 57,641 10,057 7,330 6,599 6,088 5,686 54,150 54,505 54,546 54,359 50,223 75,834 50,237 142,884 2,070,765 53,890 78,735 53,722 141,988 2,076,087 50,720 75,088 51,218 147,635 2,078,393 52,924 77,082 49,283 143,912 2,079,538 57,889 15,758 26,536 56,443 16,488 28,244 56,816 16,445 38,681 58,604 9,231 33,122 41,684 41,512 40,447 38,831 53,174 60,352 55,519 53,300 59,601 58,580 59,598 66,396 84,089 82,075 73,437 77,686 31,868 78,919 1,069,751 34,471 85,172 1,060,447 33,576 86,871 1,043,186 35,383 90,401 1,053,663 2,695 2,320 2,296 3,356 6,237 5,251 4,649 4,474 461 361 361 920 1,968 1,908 1,519 1,434 52,821 1,465,320 55,179 1,444,175 56,296 1,508,104 56,858 1,446,723 74,730 72,713 72,403 70,177 407,247 409,834 413,292 417,368 JUNE, 647 FEDERAL RESERVE BULLETIN. 1920. Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Apr. SO to May 21, 1920—Continued. RESOURCES—Continued. [In thousands of dollars.] Boston. New York. Philadelphia. Cleve- Rich- Atland. mond. lanta. Chicago. San ! St. Minne- Kansas Total. Louis. apolis. City. Dallas. FranCisco. U n i t e d States Government "bonds: Apr.30 561 May7 561 May 14 561 May21 560 "United States Victory notes: 5 Apr.30 5 May 7 5 May 14 May 21 5 United States certificates of indebtedness: Apr.30 21,564 May 7 21,554 May 14 21,522 21,581 May 21 Total earning assets: Apr. "" -r 207,798 May 7 1220,828 May 14 1233,927 May 21. " "" 227,103 Bank premises: 1,202 Apr.30 1,242 May7 May 14 1,259 May 21 1,269 Uncollected items and other deductions from gross deposits: Apr.30 54,483 May7 57,716 May 14 69,772 May 21 62,346 5 per cent redemption fund against Federal Reserve bank notes: Apr.30 1,140 1,168 May 7 1,153 May 14 1,173 May 21 All other resources: Apr.30 378 May7 405 May 14 400 May21 391 Total resources: 464,848 Apr.30 467,125 May7 492,144 May 14 484,096 May 21 A Includes bills discounted for other Federal Reserve Banks: Apr.30 22,126 35,980 May7 29,290 May 14 May 21 21,503 2 Includes bankers'acceptances bought from other Federal Reserve Banks: With their indorsementApr. 30 May7 May 14 May 21 Without their indorsementApr. 30. May 7.. May 14. May 21. 1,457 1,457 1,457 1,457 1,386 1,386 1,386 1,386 833 834 1,235 1,235 1,235 1,235 114 114 113 114 50 50 50 50 4,477 4,477 4,477 4,477 1,153 1,153 1,153 1,153 115 115 115 115 8,867 8,867 8,867 8,867 3,966 3,966 3,966 3,966 2,632 2,632 2,632 2,632 3 3 65,389 30,739 71,809 30,778 78,298 30,778 75,353 30,816 68 23,368 23,366 23,356 23,356 12,260 12,260 12,260 12,260 15,666 15,666 15,666 15,666 39,637 39,652 39,635 39,649 17,229 17,207 17,205 17,302 8,496 8,498 8,488 13,120 13,066 13,074 13,034 8,300 8,300 8,300 8,300 132,140 137,475 132,989 133,715 90,207 88,932 89,295 88,704 133,073 132,613 134,421 133,630 87,786 90,157 87,808 87,914 530 545 548 548 522 527 527 619 774 774 782 782 231 232 232 231 12,369 12,293 12,530 12,658 59,586 51,982 62,999 44,334 67,166 50,303 59,599 46,759 35,989 37,244 35,085 34,637 713,353 705,603 807,445 755,476 1,084,103 1,049,089 1,084,985 1,037,515 244,163 241,326 248,886 247,739 256,233 254,220 246,750 256,548 119,865 118,610 1120,000 117,389 137,320 138,998 139,303 139,086 523,161 515,532 523,463 521,013 3,268 3,129 3,284 3,284 500 500 500 500 1,156 1,156 1,156 1,156 640 640 564 566 574 574 2,116 2,116 2,116 2,116 143,851 128,124 160,348 154,544 56,611 55,824 65,804 62,407 63,697 63,046 73,358 73,789 3,072 3,097 3,140 3,109 1,300 1,300 1,300 1,300 831 831 831 831 451 451 451 451 1,031 1,088 979 466 1,274 511 514 320 323 305 310 1,874,172 1,840,219 1,902,012 1 868,164 442,213 437,801 457,694 450,352 547,270 543,275 552,274 546,712 84,996 57, 111 48,722 80,368 26,797 26,796 26,796 26,796 713 10,881 10,881 10,881 10,956 266,649 273,037 279,463 276,761 219,983 3,235,832 226 577 3,214,357 229,083 3,270,910 231,024 3,221,380 50,860 30,658 100,165 55,008 31,108 98,599 61,447 34,424 114,138 53,793 32,158 108,059 44,108 49,726 51,103 45,400 21,363 21,875 24,497 21,985 495 596 485 566 1,480 1,467 1,316 1,533 523 523 523 523 576 472 365 452 996 996 996 916 562 562 562 562 665 665 665 665 12,091 12,128 11,787 12,081 320 3 420 374 233 171 219 178 181 2,206 736 725 912 350 400 428 461 112 122 138 134 285 287 310 268 210 171 181 262 359 373 368 383 6,057 5,761 5,006 5,028 248,051 249,229 258,333 248,027 252,700 252,233 256,071 252,588 941,660 931,737 952,224 941,851 254,584 265,818 267,326 261,096 163,011 165,836 165,563 164,747 270,296 276,157 278,508 272,114 191,551 189', 720 190,854 185,562 400,111 6,050,467 407,079 6,026.229 413,068 6,186)071 410,852 6,086,161 42,526 L 33,512 I. 32,263 44,232 149,648 126,603 110,275 146,103 5,749 5,734 5,128 4,075 5,749 5,734 5,128 4,075 10,075 7,841 4,005 223 2,371 2,371 2,371 2,371 12,446 10,212 6,376 2,594 LIABILITIES. [In thousands of dollars.] Capital paid in: Apr.30 May7 Mayl4 May21 ^Surplus fund: Apr.30 May7 May 14 May21 i 7,229 7,307 7,307 7,532 23,762 24,547 24,559 24,621 8,198 8,199 8,265 8,276 9,947 9,943 10,039 10,041 4,778 4,785 4,786 4,786 3,685 12,754 3,692 3,705 3,713 12,760 12,760 13,096 4,169 4,170 4,170 4,170 3,243 3,245 3,247 3,250 4,214 4,218 4,288 4,300 3,622 3,630 3,641 3,651 6,038 6,040 6,340 6,350 91,639 92,536 93,107 93,876 8,359 8,359 8,359 8,359 45,082 45,082 45,082 45,082 8,805 8,805 8,805 8,805 9,089 9,089 9,089 9,089 5,820 5,820 5,820 5,820 4,695 4,695 4,695 4,695 14,292 14,292 14,292 14 292 3,724 3,724 3,724 3,724 3,569 3,569 3,569 3,569 6,116 6,116 6,116 6,116 3,030 3,030 3,030 3,030 7,539 7,539 7,539 7,539 120,120 120,120 120,120 120,120 648 FEDERAL RESERVE BULLETIN. JUNE, 1920. Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Apr. SO to May 21, 1920—Continued. LIABILITIES—Continued. [In thousands of dollars.] Boston. Government deposits: Apr. 30 May 7 MayH May21 Due to members—reserve account: Apr. 30 May7 May 14 May 21 Deferred availability items: Apr.30 May 7 MayH May21 Other deposits, including foreign government credits: Apr.30 May7 May 14 May21 Total gross deposits: Apr.30 May 7 May 14 May 21 Federal Reserve notes in actual circulation: Apr. 30 May 7 May 14 May21 Federal Reserve bank notes in circulation—net liability: Apr.30 May7 MayH May21 All other liabilities: Apr.30 May7 MayH May 21 Total liabilities: Apr. 30 May 7 MayH May 21 New York. Philadelphia. Cleve- Richland. mond. 1,665 3,028 4,361 2,046 14,571 4,587 10,634 5,396 3,027 1,861 5,961 1,470 3,382 3,253 3,150 577 2,367 113,926 110,017 121,182 119,992 748,555 717,737 754,428 725,214 103,559 98,693 101,466 102,741 140,830 139,634 137,009 138,199 57,984 58,085 59,195 57,520 43,563 44,742 57,154 50,011 97,748 101,898 122,958 113,450 5,548 5,458 5,698 5,666 47,139 41,924 40,072 42,958 6,258 6,283 6,387 6,503 6,052 6,099 6,109 164,702 163,245 188,395 177,715 908,013 866,146 928,092 887,018 156,449 152,849 169,087 164,805 266,568 269,740 269,531 271,516 838,600 845,006 843,927 849,246 14,050 14,275 14,143 14,351 1,344 Atlanta. Chicago. 1,718 2,447 2,740 2,409 835 1,431 2,182 1,398 San St. Minne- Kansas FranLouis. apolis. City. Dallas. cisco. 2,161 921 1,550 1,570 1,994 1,316 2,374 1,880 53,845 64,499 49,746 82,828 52,603 259,113 68,037 50,341 87,631 54,282 271,187 67,172 48,162 84,614 53,689 262,788 64,239 49,615 83,771 61,296 60,856 56,901 56,505 113,914 115,868 118,547 119,392 15,118 54,373 30,734 17,0^0 56,723 27,983 18,131 61,823 33,234 16,576 56,608 29,079 17,141 19,953 21,341 18,189 2,308 1,159 3,099 2,756 43,605 53,339 38,220 26,734 70,421 33,160 46,012 49,117 42,537 26,749 65,374 41,342 55,273 59,586 50,724 30,487 76,269 43,447 54,091 58,182 43,145 27,571 70,747 41,234 3,589 3,566 3,566 3,634 2,714 2,683 2,701 2,649 719 450 1,505 1,294 Total. 2,845 1,984 5,253 i 2,744 ! 37,592 22,437 44,153 24,368 I 1,859,844 I 1,818,615 1,874,145 1,833,665 I I ! j 524,156 539,480 630,427 578,883 9,352 9,965 9,654 3,681 3,891 3,830 3,826 2,225 2,164 2,242 2,263 203,639 198,056 205,844 203,067 102,160 85,011 350,010 104,188 84,482 335,271 114,829 90,210 359,603 105,127 86,318 344,587 103,648 114,429 117,548 112,055 67,808 70,005 70,040 69,748 245,443 244,384 247,696 244,473 305,875 307,294 308,372 305,310 124,644 123,741 122,192 121 277 147,466 147,410 145,610 145,749 527,633 531,987 527,943 531,797 131,087 131,481 129,996 129,114 80,954 81,008 80,529 79,799 98,850 98,703 98,375 98;036 79,906 81,725 80,461 80,174 227,529 229,865 228,602 228,711 3,074,555 3,092,344 3,083,234 3,085,202 38,122 37,836 37,667 38,270 18,910 18,944 19,060 18,987 14,186 14,129 14,014 13,965 8,423 8,344 8,523 9,584 9,536 9,311 9,415 27,380 27,427 27,241 27,045 9,605 9,425 9,204 9,237 5,660 6,145 6,208 6,258 15,535 15,418 15,235 15,055 7,489 7,549 7,524 7,474 8,897 8,865 8,854 8,791 177,881 177,972 176,805 177,371 3,940 4,199 4,409 4,623 20,593 21,602 22,685 23,927 4,408 4,620 4,781 5,006 4,534 4,764 4,916 5,240 2,186 2,272 2,362 2,494 2,259 2,418 2,540 2,698 9,591 10,000 10,385 11,034 2,351 2,589 2,684 2,796 1,777 1,864 1,970 2,123 2,656 2,819 2,850 3,099 1,496 1,599 1,657 1,773 4,396 4i6U 4,766 5,014 60,187 63,357 66,005 69,827 464,848 467,125 492,144 484,096 1,874,172 1,840,219 1,902,012 1,868,164 442,213 437,801 457,694 450,352 547,270 543,275 552,274 546,712 248,051 249,229 258,333 248,027 252,700 252,233 256,071 252,588 941,660 931,737 952,224 941,851 254,584 265,818 267,326 261,096 163,011 165,836 165,563 164,747 270,296 276,157 278,508 272,114 191,551 189,720 190,854 185,562 400,111 407,079 413,068 410,852 6,050,467 6,026,229 6,186,071 6,086,161 24,850 24,556 25,000 24,758 2,000 5,000 38,471 29,917 19,291 26,000 35,636 | 36,278 41,727 46,922 11,111 10,070 10,257 19,175 15,871 15,000 7,000 14,248 3,000 3,000 5,000 10,000 3,563 3,608 3,657 3,559 1,984 2,032 2,032 1,996 11,812 12,354 11,826 14,122 104,493 99,368 98,075 102,939 142,925 96,008 145,712 2,526,085 148,883 92,187 150,159 2,479,900 151,644 94,541 156,967 2,646,800 145,508 89,460 154,447 2,539,855 MEMORANDA. Contingent liability as indorser on: Discounted paper rediscounted with other Federal Reserve B a n k s Apr. 30 May7 MayH May 21 Bankers' acceptances sold to other Federal Reserve Banks— Apr.30 May 7 MayH May21 Contingent liability on bills purchased for foreign correspondents— Apr.30 May7 MayH May21 20,709 7,782 5,749 5,734 5,128 4,075 16,188 16,188 16,188 16,182 149,648 126,603 110,275 146,103 5,749 5,734 5,128 4,075 16,188 16,188 16,188 16,182 JUNE, 1920. 649 FEDERAL, RESERVE BULLETIN. Maturities of bills discounted and bought, also of Treasury certificates of indebtedness. [In thousands of dollars.] Within 15 days. Bills discounted: Apr.30 May7 May 14 May21 _. Bills bought: Apr.30 May7 May 14 May21 United States certificates of indebtedness: Apr.30 May7 May 14 May 21 16 to 30 days. 31 to 60 days. 61 to 90 days. Over 90 1,496,952 1,492,965 1,507,422 1,419,910 262,992 237,443 271,990 279,341 423,922 406,720 414,728 477,708 312,610 324,059 308,978 267,702 90,738 100,113 109,631 109,970 82,962 79,906 86,836 87,388 171,583 175,165 169,617 173,536 61,964 54,650 47,208 46,474 5,537 11,954 17,943 15,856 1,500 2,040 2,540 2,624 6,998 7,579 9,637 12,510 12,772 12,836 28,831 16,100 38, 95 43,435 48,172 55,725 Total. 2,535,071 2,504,622 2,551,290 2,500,386 407,247 409,834 413,292 417,368 239,842 238,628 220,512 229,671 266,649 273,037 279,463 276,761 FEDERAL RESERVE NOTES. Federal Reserve note account of each Federal Reserve Bank at close of business on Fridays, Apr. SO to May 21, 1920. [In thousands of dollars.] Federal Reserve notes: Received from a g e n t s Apr. 30 May7 May 14 May 21 Held by b a n k s Apr. 30 Mav7 Mayl4 May21 In actual circulation— Apr.30 May 7 May 14 May 21 Gold deposited with or to credit of Federal Reserve agent: Apr.30 May7 May 14 May 21 Paper delivered to Federal Reserve agent: Apr.30 May7 May 14 May 21 Boston. New York. Phila- Cleve- Rich- j Atdelphia. land. mond. i lanta. 275,059 277,803 278,275 280,766 943,954 949,746 953,289 960,974 256,831 255,467 256,602 256,939 8,491 8,063 8,744 9,250 105,354 104,740 109,362 111,728 266,568 269,740 269,531 271,516 838,600 845,006 843,927 849,246 119,072 116,316 113,788 111,279 317,217 87,503 142,813 40,914 54,521 306,316 86,539 143,961 39,436 53,410 305,072 87,674 143,609 37,780 52,090 294,136 86,811 144,129 38,646 52,199 185,668 198,708 211,839 204,957 ,014,607 973,080 ,002,502 958,116 320,470 321,518 321,346 320,666 130,563 129,726 128,170 127,336 ;152,646 !l52,590 151,674 |151,O89 11,388 14,595 11,083 14,224 8,906 12,974 12,466 15,356 5,859 5,985 5,978 6,059 5,180 5,180 6,064 5,340 305,875 307,294 308,372 305,310 124,644 123,741 122,192 121,277 147,466 147,410 145,610 145,749 245,443 244,384 247,696 244,473 100,619 .76,719 .85,700 ,336 88,981 220,313 .02,787 92,763 228,529 .01,560 118,533 123,215 123,517 123,303 San St. Minne- Kansas Louis. apolis. City. Dallas. Francisco. 566,730 571,644 573,341 579,324 149,423 82,518 148,316 82,521 148,354 81,907 147,637 81,444 104,333 104,779 104,123 103,749 1,564 1,513 1,378 1,645 5,483 6,076 5,748 5,713 39,097 39,657 16,835 45,398 18,358 47,527 18,523 527,633 531,987 527,943 531,797 131,087 131,481 129,996 129,114 80,954 81,008 98,703 80,529 98,375 79,799 83,485 85,966 84,684 83,783 Total. 260,234 3,326,186 260,401 3,340,477 262,940 3,344,705 260,487 3,354,194 3,579 32,705 4,241 30,536 4,223 34,338 3,609 31,776 251,631 248,133 261,471 268,992 227,529 229,865 228,602 228,711 3,074,555 3,092,344 3,083,234 3,085,202 79,906 81,725 80,461 80,174 160,315 44,399 33,487 34,646 27,541 75,500 1,137,928 28,772 73,727 1,121,311 157,409 44,752 33,070 77,246 1,115,902 155,067 45,789 33,206 36,646 79,793 1,098,823 35,302 150,989 45,663 479,036 13,683 64,284 471,403 19,115 67,149 479,225 114 631 68,255 476,562 15,140 71,982 11,086 10,555 12,440 11,728 75,520 77,891 75,542 75,648 L85,647 [97,092 196,833 200,833 2,853,705 2,854,072 3,896,865 2,861,121 650 JUNE, 1920. FEDERAL RESERVE BULLETIN. Federal Reserve note account of each Federal Reserve agent at close of business on Fridays, Apr. SO to May 21, 1920. [In thousands of dollars.] Boston. Federal Reserve notes; Received from ComptrollerApr. 30 564,900 May7 567,900 May 14 573,500 May21 573,900 Returned to Comptroller— Apr. 30 233,241 May 7 235,997 May 14 238,525 May21 241,034 Chargeable to Federal Reserve a g e n t Apr. 30 331,659 May 7 331,903 May 14 334,975 May21 332,866 In hands of Federal Reserve agent— Apr.30 56,600 May7 54,100 May 14 56,700 May21 52,100 Issued to Federal Reserve Bank less amount returned to Federal Reserve agent for redemption— Apr.30 275,059 May7 277,803 May 14 278,275 May21 280,766 Collateral held as security for outstanding notes: Gold and gold certificatesApr. 30 900 May7 900 Mayl4 900 May21 900 Gold redemption f u n d Apr. 30 14,172 May7 14,416 Mayl4 14,888 May21 15,379 Gold settlement fund, Federal Reserve BoardApr. 30 104,000 May7 101,000 May 14 98,000 May21 95,000 Eligible paper, minimum required1— Apr.30 155,987 May7 161,487 May 14 164,487 May 21 169,487 1 New York. Phila- Cleve- Richdelphia. land. mond. Atlanta. San St. Minne- Kansas Dallas. Fran Chicago. Louis. apolis. City. Cisco. Total. 2,137,480 2,147,040 2,153,640 2,161,040 583,200 583,200 583,200 583,200 570,400 579,680 581,580 583,800 321,840 322,800 324,300 325,600 338,000 975,480 339,000 979,180 339,640 987,580 342,500 1,016,080 318,860 320,260 |322,060 [323,180 160,080 160,080 166,580 166,580 220,040 220,540 220,740 221,060 157,780 159,780 159,780 160,780 1,062,526 1 066,294 1 069,351 1,073,066 286,489 288,453 290,318 292,181 225,020 227,872 230,224 232,704 161,853 163,330 164,986 166,620 124,959 126,570 127,891 129,781 380,910 383,816 386,159 390,236 154,197 157,504 158,666 160,903 70,737 71,454 72,268 73,011 109,177 110,221 111,177 112,521 63,520 64,289 65,126 66,247 171,796 173,569 175,050 177,503 3,044,425 3,069,369 3,089,741 3,115,807 1,074,954 1,080,746 1,084,289 1,087,974 296,711 294,747 292,882 291,019 345,380 351,808 351,356 351,096 159,987 159,470 159,314 158,980 213,041 212,430 211,749 212,719 594,570 595,364 601,421 625,844 164,663 162,756 163,394 162,277 89,343 88,626 94,312 93,569 110,863 110,319 109,563 108,539 94,260 95,491 94,654 94,533 265,124 264,551 267,090 264,637 3,740,555 3,748,211 3,764,999 3,784,053 24,910 29,484 30,290 29,744 30,010 31,144 30,430 31,644 60,395 59,840 60,075 61,630 27,840 23,720 28,080 46,520 15,240 14,440 15,040 14,640 6,825 6,105 12,405 12,125 6,530 10,775 5,540 9,525 5,440 9,970 4,790 10,750 4,890 4,150 4,150 4,150 414,369 407,734 420,294 429,859 152,646 152,590 151,674 151,089 566,730 571,644 573,341 579,324 131,000 131,000 131,000 127,000 39,8 39,2 36,2 34,0 943,954 949,746 953,289 960,974 1256,831 255,467 256,602 '256,939 195,734 195,734 195,734 195,734 320,470 321,518 321,346 320,666 130,503 129,726 128,170 127,336 2,500 2,500 2,500 2,500 32,025 32,025 32,026 32,025 436,920 6,784,980 438,120 6,817,580 442,140 6,854,740 442,140 149,423 82,518 104,333 83,485 260,234 3,326,186 148,316 82,521 104,779 85,966 260,401 3,340,477 148,354 81,907 104,123 84,684 262,940 3,344,705 147,637 81,444 103,749 83,783 260,487 3,354,194 2,990 3,650 3,750 3,760 13,052 13,052 13,052 13,052 255,032 257,692 257,793 257,802 7,831 9,831 9,831 9,831 15,788 16,936 16,583 17,104 2,914 1,436 2,780 1,146 4,021 2,410 3,090 2,699 10,171 9,265 9,922 8,844 2,378 2,071 2,909 2,672 1,135 1,418 1,554 1,411 1,786 2,743 3,786 2,442 4,476 5,707 4,870 5,748 14,479 13,345 11,864 18,077 97,417 92,979 97,369 107,846 95,000 95,000 95,000 95,000 38,000 38,000 35,000 37,500 48,000 48,500 46,500 47,000 150,144 148.144 145,145 142.145 39,031 39,031 39,130 39,231 19,300 18,600 18,600 18,600 32,860 34,860 32,860 32,860 15,234 13,234 13,234 11,234 61,021 60,382 65,382 61,716 785,479 770,640 760,740 733,175 626,737 169,328 177,657 89,589, 98,125 643,430 177,557 90,290 99,180 648,217 177,737 90,390 99,584 666,838 170,128 176,537 406,415 414,235 418,274 428,335 105,024 103,564 102,565 101,974 49,031 49,451 48,701 48,381 69,687 67,176 67,477 68,447 55,944 57,194 56,749 56,969 184,734 186,674 185,694 180,694 2,188,258 2,219,166 2,228,803 2,255,370 11,483 10,582 9,338 18,402 14,614 12,650 15,785 13,922 110,000 72,8 100,000 73,8 100,000 71 8 80,000 72,8 For actual amounts see " Paper delivered to Federal Reserve agent," on p . 649. JUNE, 1920. FEDERAL RESERVE BULLETIN. 651 CONDITION OF MEMBER BANKS IN SELECTED CITIES. Net liquidation of 114.6 millions of United States war securities and paper supported by such securities, also of 75.3 millions of loans secured by stocks and bonds as against an increase by 144.4 millions in other loans and investments, is indicated by the weekly reports of member banks in about 100 leading cities covering the period between April 16 and May 14. Treasury certificate holdings which, following the issue of 254.5 millions of certificates on April 15, reached the high level of 681.9 millions, show a gradual decline to 598.3 millions on May 14, United States bond holdings increased about 10 millions, while Victory notes show but a nominal change. For the member banks in New York City a reduction during the four weeks of 75.3 millions in Treasury certificates as against an increase of over 18 millions in other United States securities is shown. Loans secured by United States war obligations show a gradual decline from 1,129.5 to about 1,089 millions, the decline occurring largely outside of New York City. Loans secured by stocks and corporate bonds show an almost continuous reduction from 3,179.5 to 3,104.2 millions, most of this reduction being reported by the New York City banks. Since the beginning of the year net liquidation of United States security holdings amounted to 325.5 millions, while the net reduction in loans supported by such securities (inclusive of amounts rediscounted with Federal Reserve Banks) is 234.3 millions. There is also shown net liquidation during the four and one half months of 302 millions in loans secured by corporate stocks and bonds. As against an aggregate reduction of 861.8 millions in the holdings of United States securities and specified secured loan accounts, other loans and investments, including commercial loans and discounts proper, show an increase of 1,246.3 millions, indicating thus a net increase since the beginning of the year of 384.5 millions in the total loans and investments of the reporting banks. Some part of this increase is due, of course, to the increase from 798 to 814 in the number of reporting banks, but with all due allowance for this factor the figures given indicate further, though somewhat slackened, credit expansion. In New York City a net decrease since January 2 of 465.4 millions in United States war security holdings and specified secured loans goes hand in hand with an increase of 264.3 millions in other loans and investments, indicating some credit liquidation by the New York City banks as against further credit expansion by banks in the other large cities. In connection with these developments it may be pointed out that accommodation to reporting banks, as shown by the books of the Federal Reserve Banks, has increased since April 16 of the present year from 2,053.4 to 2,127.6 millions. The latter total is composed of 1,235.8 millions of paper secured by United States war obligations (so-called war paper), compared with 1,190.3 millions of like paper on April 16, and of 891.8 millions of ordinary commercial paper, as compared with 863.1 millions of such paper, held by the Federal Reserve Banks for reporting institutions four weeks earlier. Since January 2 accommodation of the reporting banks at the Federal Reserve Banks shows an increase of 257.2 millions, of which 26 millions only represents the increase in the amount of war paper and 231.2 millions the increase in the amount of other paper carried by the Federal Reserve Banks for the "reporting" institutions. The increasing extent to which the credit burden of the banks has been shifted to the Federal Reserve Banks is measured somewhat by the change during the period in the ratio of total accommodation at the Federal Reserve Banks to total loans and investments of reporting institutions, which shows an increase from 11.2 to 12.4 per cent. In the absence of Government borrowings during the period under review, Government deposits with reporting banks show a continuous decline from 189.8 to 59.2 millions. Other demand deposits (net), partly in consequence of some withdrawals of balances by country banks from their reserve city correspondents, show a decline of 121.3 millions, of which 46.3 millions represent the decrease at the New York City banks. Time deposits, on the other hand, show an almost continuous increase during the period, aggregating 46.7 millions. Reserve balances with Federal Reserve Banks moved, on the whole, in accord with changes in the banks' deposit liabilities, indicating that the banks' reserve balances were little, if any, in excess of the required minima. Cash in vault, largely Federal Reserve notes, shows but little change for the period, the amount fluctuating between 355.4 on April 30 and 373.7 millions on May 7- 652 JUNE, 1920. FEDERAL RESERVE BULLETIN. Principal resource and liability items of member banks in leading citiest including member banks located in Federal Reserve Bank cities and in Federal Reserve Branch cities, as at close of business on Fridays, from Apr. 28 to May 14> 1920. 1. ALL REPORTING MEMBER BANKS. [In thousands of dollars.] Boston. Number of reporting banks: Apr. 23 Apr.30 May7 May 14 United States bonds to secure circulation Apr.23 Apr.30 May7 May 14 Other United States bonds, including Liberty bonds: Apr.23. Apr.30 May7 May 14 United States Victory notes: Apr.23 Apr.30 May7 May 14 United States certificates of indebtedness: Apr.23 Apr.30 May7 May 14 Total United States securities owned: Apr.23..., Apr.30 May7 May 14 L o a n s secured by Government war obligations, including r e d i s c o u n t s w i t h Federal Reserve Bank: Apr.23 Apr.30 May7 May 14 Loans secured by stocks and bonds, other than United States securities; Apr.23 Apr.30 May7 May 14 All other loans and investments, including rediscounts with Federal Reserve Bank: Apr.23 Apr.30 May7 May 14 Total loans and investments, including r e d i s c o u n t s with Federal Reserve Bank: Apr.23 Apr.30 May7 May 14 Reserve balance with Federal R e s e r v e Bank: Apr.23 Apr.30 May7 May 14 Cash in vault: Apr.23 Apr.30 May7 May 14 NewYork. Philadelphia. Cleveland. St. RichMinne- Kansas San FranAtmond. lanta. Chicago. Louis. apolis. City. Dallas. cisco. 107 107 107 107 116 117 115 116 Total. 811 812 810 814 7,221 7,221 7,221 7,271 13,061 13,061 13,061 13,061 47,498 47,498 47,498 47,498 11,347 11,347 11,347 11,347 41,874 27,223 41,925 27,411 41 877 27,411 41,875 27,451 14,015 14,015 14,015 14,015 21,397 21,401 21,400 21,449 15,053 15,078 15,278 15,278 19,573 19,573 19,573 19,573 34,605 34,605 34,605 34,605 269,793 270,061 270,211 270,348 13,948 14,107 14,110 14,044 227-668 240T214 248,590 245,314 29,026 29,925 30,035 29,958 59,478 59,211 60,070 59,907 34,169 34,488 34,449 34,071 29,102 29,249 29,458 29,508 65,881 14,272 10,297 23,319 65,850 12,994 10,239 23,393 63,935 12,949 9,907 22,684 65,480 12,612 9,931 22,827 17,855 17,654 17,753 18,160 60,933 61,460 61,338 61,617 585,948 598,784 605,278 603,429 7,641 7,247 7,464 7,162 87,458 85,945 87,094 88,501 9,427 10,364 9,680 9,525 19,861 19,587 19,694 19,770 8,431 8,311 8,323 8.295 6,384 5,381 4,780 4,753 41,278 40,939 40,205 40,099 3,054 2,939 3,034 2,915 2,085 1,235 1,620 1,616 3,508 3,558 3,569 3,565 12,792 12,594 12,382 12,623 207,316 203,438 202,682 203,367 37,407 38,331 37,563 36,735 300,758 278,930 273,052 274,692 59,554 57,643 53,756 53,198 31,410 32,376 28,930 28,498 18,918 19,536 18,670 18,905 18,260 19,046 18,005 19,110 74,201 78,044 76,721 78,210 14,405 13,841 13,579 14,096 11,091 7,890 9,324 9,395 7,974 18,724 8,376 18,922 10,235 19,186 10,091 19,374 36,494 36,435 36,005 36,909 630,472 608,363 595,657 598,313 72,057 72,746 72,198 71,002 663,382 652,587 656,234 656,005 109,354 109,279 104,818 104,028 69,037 67,550 67,299 67,386 202,757 206,234 202,261 205,238 48,657 46,700 46,487 46,548 30,694 51,743 59,660 26,585 52,185 59,707 28,072 53,034 60,081 28,213 52,739 60,672 60,944 59,950 60,283 58,687 543,198 541,381 543,065 543,221 106,371 101,044 102,728 101,966 87,532 85,879 83,421 82,457 36,928 26,972 37,091 27,061 37,051 27,040 36,789 27,504 110,866 112,170 110,567 111,420 40,478 20,370 24,753 38,857 20,459 24,844 39,030 19,446 24,565 38,946 18,658 24,377 10,765 10,785 10,991 11,145 31,731 30,649 31,894 33,834 1,100,908 1,090,170 1,090,081 1,089,004 191, 7 193,163 196,956 195,094 1,334,930 1,349,047 1,314,441 1,308,730 205,435 199,449 201,364 199,947 342,743 342,520 342,059 340,204 63,449 62,363 63,159 63,714 453,301 463,843 460,772 460,573 156,756 157,538 156,433 129,261 30,911 32,076 32,151 32,266 80,499 80,780 79,944 80,026 33,328 33,367 33,801 36,785 145,882 147,540 148,456 148,521 3,147,591 3,170,316 3,139,528 3,104,178 757,250 751,756 764,946 779,413 3,886,909 3,914,724 3,935,454 3,952,233 560,955 552,497 553,235 558,432 890,457 386,271 408,976 888,210 387,101 418,527 386,468 421,002 904,790 385,302 409,845 1,770,379 1,764,398 1,765,476 1,766,784 409,107 404,601 407,542 431,054 307,627 300,858 302,722 300,813 544,530 540,998 532,308 532,395 256,820 254,048 253,624 256,046 929,138 935,924 936,948 947,336 11,108,419 ,11,113,642 11,146,891 11,224,443 1,081,858 l,0Y7,615 1,094,383 1,104,196 6,428,419 6,457,739 6,449,194 6,460,189 982,115 962,269 962,145 964,373 2,537,303 2,546,645 2,539,076 2,544,015 654,998 701,525 369,573 647,696 379,978 698,807 357,907 649,492 382,391 689,851 358,497 645,809 379,950 689,537 364,648 1,251,575 1,259,207 1,261,628 1,275,445 17,050,447 17,054,774 17,050,328 17,093,082 86,353 78,545 75,979 83,278 693,003 695,713 655,087 694,711 67,422 65,800 63,294 64,781 92,480 35,907 33,225 98,251 36,481 33,633 96,332 35,934 33,310 94,009 37,316 33,591 195,358 43,163 23,062 42,423 25,397 194,575 40,737 21,836 45,012 26,472 193,179 43,945 22,215 50,258 26,970 195,618 43,399 23,078 45,160 25,729 75,855 78,090 77,227 82,732 1,413,648 1,415,145 1,373,730 1,423,402 24,376 23,284 25,208 25,885 121,146 114,657 125,066 121,514 16,971 15,731 16,284 16,895 32,758 30,584 33,761 34,111 26,913 27,570 29,193 27,603 367,831 355,372 373,651 371,216 152,623 88,741 153,099 88,880 150,571 88,443 150,050 87,822 1,473,355 1,469,708 1,463,217 1,477,501 108,750 108,630 109,992 109,057 620,690 621,702 621,954 618,970 18,820 17,659 19,511 18,761 568,434 575,501 578,500 568,449 13,780 14,598 13,761 14,P2O 67,928 67,663 67,210 67,324 16,926 16,926 16,925 16,925 9,978 10,237 10,433 10,229 8,692 8,377 8,282 8,748 5,397 5,338 4,837 4,543 14,957 14,869 14,434 15,151 11,512 10,143 10,508 10,975 144,824 1,693,529 145,094 1,680,646 144,330 1,673,828 145,754 1,675,457 JUNB, 1920. 653 FEDERAL RESERVE BULLETIN. Principal resource and liability items of member banks in leading cities, including member banks located in Federal Reserve Bank cities and in Federal Reserve Branch cities, as at close of business on Fridays, from Apr. 23 to May 14,1920—Con. 1. ALL REPORTING MEMBER BANKS—Continued. [In thousands of dollars.] New York. Philadelphia. Cleveland. Richmond. Atlanta. 801,123 799,364 815,225 822,391 5,194,865 5,243,462 5,174,634 5,264,340 665,827 659,140 674,030 683,395 857,925 864,415 860,162 871,384 352,201 350,211 350,727 350,679 287,190 285,741 281,567 286,447 1,412,233 1,433,969 1,415,371 1,439,000 338,504 334,290 333,930 330,911 229,815 220,029 225,269 221,486 435,499 427,953 428,006 436,071 237,166 235,431 232,667 239,110 610,422 607,319 597,461 616,321 11,422,770 11,461,324 11,389,049 11,561,535 137,610 138,594 139,047 138,902 421,914 416,439 419,224 418,957 26,700 26,673 26,616 32,693 361,600 364,226 363,939 364,882 103,143 103,27S 105,055 105,021 149,782 149,090 149,931 150,350 614,631 613,314 617,083 618,830 122,569 122,656 123,748 123,378 64,002 64,162 64,415 64,338 96,701 96,907 98,568 97,685 44,964 44,810 45,352 48,430 478,024 478,878 484,758 491,820 2,621,640 2,619,027 2,637,736 2,655,286 13,490 11,468 11,469 4,586 108,547 92,265 92,265 36,906 8,585 7,289 7,289 2,911 7,331 6,252 6,252 2,501 3,152 2,675 2,675 1,076 4,299 3,620 3,469 2,527 6,779 5,752 5,752 2,421 3,776 3,200 3,214 1,283 1,282 982 982 392 1,458 1,240 1,240 495 2,580 2,189 2,189 874 9,543 13,204 7,965 3,228 170,822 150,136 144,761 59,200 29,344 37,249 28,581 35,911 380,235 355,114 334,910 386,999 101,566 105,842 89,701 88,208 41,735 46,038 51,050 53,596 47,880 47,900 47,635 49,341 41,263 40,344 39,895 41,535 112,632 118,220 117,358 118,407 30,655 14,394 25,738 28,614 31,901 12,862 26,645 30,732 31,993 11,521 26,356 29,200 32,681 12,827 28,148 29,605 35,039 36,498 37,862 37,962 889,095 889,345 846,062 915,220 Boston. Net demand deposits on which reserve is computed: Apr. 23 Apr. 30 May7 May 14 Time deposits: Apr.23 Apr.30 May7 May 14 Government deposits: Apr.23 Apr.30 May7 May 14 Bills payable with Federal Reserve Bank: Secured by United States war obligationsApr. 23 Apr.30 May7 May 14 All o t h e r Apr. 23 Apr.30 May7 May 14 Bills rediscounted with Federal Reserve Bank: Secured by United States war obligationsApr. 23 Apr.30 May7 May 14 All o t h e r Apr. 23 Apr.30 May7 May 14 455 100 145 Minne- Kansas Dallas. San FranSt. Chicago. Louis. apolis. City. cisco. 610 4! 420 Total. 2,232 2,685 2,717 1,926 250 250 250 250 735 1,060 60 60 215 215 15 85 85 285 285 3,912 4,851 3,687 3,101 26,327 25,238 32,673 31,793 152,891 165,231 170,717 164,019 56,800 55,403 59,084 58,788 15,894 7,643 16,415 8,520 15,429 ! 8,431 13,944 7,896 5,631 5,471 5,652 5,989 13,009 14,229 13,041 12,815 11,877 11,835 11,693 12,296 5,467 5,844 4,862 3,720 5,551 5,402 5,422 5,177 1,234 1,018 1,218 1,154 3,141 2,814 3,196 3,057 305,465 317,420 331,418 320,648 60,762 48,144 46,852 55,898 175,554 202,677 203,769 188,799 29,509 23,606 19,475 20,956 50,285 28,759 39,591 48,792 30,028 44,738 48,656 28,141 46,458 45,184 28,231 45,411 260,870 255,903 238,547 233,882 71,607 69,918 73,489 73,542 45,858 48,022 47,527 47,881 67,643 71,927 69,909 62,887 16,899 18,774 20,089 18,959 54,723 62,202 67,479 67,074 902,060 924,731 910,391 888,704 20 20 20 20 5 5 5 5 15 15 15 15 277 278 277 278 2. MEMBER BANKS IN F E D E R A L RESERVE BANK CITIES. [In thousands of dollars.] Number of reporting banks: Apr.23 Apr.30 May7 May 14 United States bonds to secure circulation: Apr.23 Apr.30 May7 May 14 Other United States bonds, including Liberty bonds: Apr.23 Apr.30 May7 May 14 United States- Victory notes: Apr.23 Apr.30 May7 May 14 United States certificates of indebtedness: • Apr.23 Apr.30 May7 May 14 72 73 72 73 12 12 12 12 9 9 9 9 8 8 8 8 50 50 50 50 13 13 13 13 3,031 3,031 3,031 3,031 37, 801 37, 801 37, 801 37,801 7,337 7,337 7,337 7,337 3,663 3,664 3,666 3,664 2,782 2,782 2,782 2,782 3,100 3,100 3,100 3,100 1,438 1,438 1,439 1,438 10,296 10,296 10,295 10,295 2,791 2,791 2,791 2,791 4,913 4,938 4,938 4,938 4,560 4,560 4,560 4,560 18,500 18,500 18,500 18,500 100,212 100,238 100,240 100,237 5,335 5,377 5,357 5,190 195,012 207 562 215,910 212,998 21,777 22,877 22,876 22,881 7,237 7,196 7,156 7,295 4,845 4,811 4,824 4,824 1,588 1,588 1,864 1,863 29,971 29,679 28,053 29,207 5,263 4,918 4,628 4,594 2,069 1,967 1,966 1,999 7,951 7,975 7,224 7,354 3,181 3,132 3,119 3,202 36,603 36,640 36,629 36,418 320,832 333,722 339,606 337,825 527 442 359 360 76, 667 75, 200 76, 540 77,702 6,695 7,251 7,094 6,839 2,383 2,423 2,332 2,317 254 254 262 256 389 390 230 228 13,195 13,048 12,423 12,417 721 713 736 711 184 184 183 183 2,749 2,792 2,269 2,261 810 892 902 821 4,151 4,177 3,958 3,904 108,725 107,766 107,288 107,999 27,090 28,698 28,082 27,548 283, 012 261 217 255,375 257 023 56,687 54,756 50,883 50,280 7,233 8,222 6,743 6,365 1,405 1.268 1,244 1,240 2,083 2,133 2,133 2,088 31,946 32,291 32,122 32,565 12,298 11,960 11,759 12,110 4,880 4,371 4,351 4,437 2,368 2,635 4,275 4,296 10,986 11,164 11,441 11,594 19,140 19,328 19,375 19,376 459,128 438,043 427,783 428,922 654 FEDERAL RESERVE BULLETIN. JUNE, 1920. Principal resource and liability items of member banks in leading cities, including member banks located in Federal Reserve Bank cities and in Federal Reserve Branch cities, as at close of business on Fridays, from Apr. 23 to May 14,1920—Con. 2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES—Continued. [In thousands of dollars.] Boston. Total United States securities owned: Apr.23 Apr. 30 May7.. May 14 Loans secured by Government war obligations, including rediscounts with Federal Reserve Banks: Apr.23 Apr. 30 May7 May 14. Loans secured by stocks and bonds, other than United States securities: Apr.23 Apr. 30 May 7 May 14 All other loans and investments, including rediscounts with Federal Reserve Bank: Apr.23 Apr. 30 May 7 May 14 Total loans and investments, including rediscounts with Federal Reserve Bank: Apr. 23 Apr. 30 May7 May 14 Reserve balance with Federal Reserve Bank: Apr. 23 Apr. 30 May7 May 14 Cash in vault: Apr.23 Apr. 30 May7 May 14 Net demand deposits on which reserve is computed: Apr.23 Apr. 30 May7 May 14 Time deposits: Apr.23 Apr. 30 May 7 May 14 Government deposits: Apr. 23 Apr. 30 May 7 May 14 Bills payable with Federal Reserve Bank: Secured by United States war obligationsApr. 23 Apr. 30 May7 May 14 All otherApr. 23 Apr. 30 , May 7 , May 14 New York. Philadelphia. Cleveland. Richmond. Atlanta. Chicago. Minne- Kansas San FranSt. Louis. apolis. City. Dallas. cisco. Total. 35,983 37,548 36,829 36,129 592,492 581,780 585,626 585,524 92,496 92,221 88,190 87,337 20,516 21,505 19,897 19,641 9,286 9,115 9,112 9,102 7,160 7,211 7,327 7,279 76,550 76,456 74,037 75,627 28,578 27,887 27,418 27,710 9,924 9,313 9,291 9,410 17,981 18,340 18,706 18,849 19,537 19,748 20,022 20,177 78,394 78,645 78,462 78,198 988,897 979,769 974,917 974,983 50,165 49,087 49,729 48,409 511,463 510,212 510,082 511,678 101,807 96,501 97,804 97,230 24,149 23,066 23,180 22,685 10,562 10,687 10,539 10,161 5,051 5,006 4,941 4,843 75,871 76,136 74,333 77,075 28,026 26,253 25,704 26 066 10,542 10,558 9,904 8,684 9,403 9,708 9,795 9,343 4,512 4,696 4,728 4,699 14,255 13,959 13,783 16,677 834,522 837,550 144,270 145,323 149,293 148,463 1,172,721 1,195,258 1,156,694 1,154,371 184,897 179,700 181,434 180,299 117,073 117,836 117,782 118,935 15,755 15,705 16,368 15,473 9,121 8,098 8,139 9,143 332,775 120,463 342,989 120,767 339,137 118,343 339,669 91,375 14,596 14,694 14,752 14,648 35,383 35,404 35,320 35,330 10,031 9,886 67,680 67,874 68,305 69,184 2,224,717 2,253,679 2,215,453 2,186,879 540,121 535,406 544,664 557,424 3,427,407 3,448,453 3,468,125 3,480,130 493,207 484,501 484,888 489,784 281,609 280,268 280,391 281,003 74,120 74,170 71,502 71,691 1,075,206 262,235 63,137 1,063,907 261,585 63,100 1,062,744 266 214 61,059 1,060,592 289,462 148,253 145,856 144,426 145,434 200,249 195,741 193,448 191,763 61,401 61,384 62,409 61,087 439,857 443,070 444,716 450,739 7,067,654 7,057,478 7,086,627 7,140,168 770,539 767,364 780,515 790,425 5,704,083 5,735 703 5,720,527 5,731,703 872,407 852,923 852,316 854,650 443,347 442,675 441,250 442,264 109,723 109,677 107,521 106,427 85,321 83,452 83,507 82,324 1,560,402 1,559,488 1 550,251 1,552,963 439,302 436,492 437,679 434,613 183,315 180,421 178,373 178,176 263,016 259,193 257,269 255,285 95,433 95,859 97,045 95,952 600,186 603,548 605,266 614,798 11,127,074 11,126,795 11,111,519 11,139,580 70,032 62,097 59,838 65,357 646,849 649,523 611,510 649,367 60,516 59,047 55,629 58,338 24,986 28,981 26,720 25,767 5,896 5,761 4,820 5", 796 6,687 6,073 5,519 6,977 140,120 136,905 136,075 135,158 32,172 30,175 33,148 32,365 11,178 10,480 10,292 11,441 10,295 13,783 15,412 12,207 5,800 6,770 7 528 6,608 32,071 32,944 32,855 33,651 1,046,602 1,042,539 999,346 1,043,032 14,425 13,690 14,811 15,464 106,742 100,744 110,400 107,448 13,325 12,405 12,978 13,222 8,279 7,945 8,681 9,004 2,072 1,838 1,989 2,029 2,589 2,970 2,194 2,383 39,324 38,145 38,834 38,371 5,175 5,198 5,345 2,897 2,558 2,474 2,764 3,476 3,560 3,379 3,711 1,998 1,919 2,034 2,022 9,039 9,399 10,109 9,322 209,341 200,371 213,228 211,026 612,272 610,795 624 426 628,837 4,680,133 4,726 805 4,652,393 4,745,339 577,370 571,378 584,666 593,793 209,479 217,420 216,950 218,144 54,242 54,912 53,741 54,509 48,563 47,376 45,950 50,433 963,902 976,485 967,985 974,763 239,685 236,695 234,733 232,385 99,168 97,293 98,900 95,504 137,617 137,587 140,698 144,980 64,995 64,298 64,114 64,661 266,095 266,106 262,701 266,647 7,953,521 8,007,150 7,947,257 8,069,995 43,852 44,285 44,178 44,450 300,889 301,163 302,226 301,278 17,142 17,136 17,079 23,043 167,301 169,743 170,574 170,724 21,118 20,961 20,761 20,737 21,092 21,158 21,615 21,859 275,462 273,763 276,056 276,969 73,075 73,199 73,640 73,765 23,471 23,604 23,578 23,422 13,355 13,405 13,392 13,407 4,291 4,288 4,340 4,363 212,195 212,051 216,976 218,854 1,173,243 1,174,756 1,184,415 1,192,871 10,825 9,201 9,202 3,680 105,775 89,908 89,908 35,964 8,445 7,172 7,172 2,865 2,022 1,721 1,721 671 657 558 558 223 287 242 241 99 3,632 3,081 3,081 1,228 3,323 2,816 2,816 1,130 77 42 42 16 1,056 897 897 360 1,450 1,230 1,230 490 8,832 7,504 7,505 3,002 146,381 124,372 124,373 49,728 33,600 25,378 31,958 342,738 318,466 303,058 350,741 95,893 99,504 84,732 83,157 13,718 11,844 10,579 12,559 8,827 7,681 6,472 6,621 2,372 2,542 1,852 2,372 53,350 53,688 52,172 54,647 21,812 23,044 22,899 23,057 4,719 4,638 4,325 4,422 15,120 15,644 14,311 16,555 13,693 14,881 15,021 15,021 19,069 20,385 21,474 21,201 618,006 605,917 562,273 622,311 1,000 845,806 1,000 655 FEDERAL RESERVE BULLETIN. JUNE, 1920. Principal resource and liability items of member banks in leading cities, including member banks located in Federal Reserve Bank cities and in Federal Reserve Branch cities, as at close of business on Fridays, from Apr. 23 to May 14,1920—Con. 2. MEMBER BANKS IN F E D E R A L R E S E R V E BANK CITIES—Continued. [In thousand of dollars.] Boston. Bills rediscounted with Federal Reserve Bank: Secured by United States war obligationsApr. 23 Apr. 30 May 7 May 14 All o t h e r Apr. 23 Apr. 30 May 7 May 14 New York. Philadelphia. Cleveland. Richmond. Atlanta. Chicago. San FranMinne- Kansas St. cisco. Louis. apolis. City. Dallas. 24,138 22,798 30,405 29,421 149,218 161,676 165,397 159,171 56,254 54,817 58,498 58,082 4,227 4,124 3,899 3,783 1,645 2,310 2,188 2,091 166 148 142 138 6,659 6,602 5,719 6,266 7,218 7,246 6,708 7,279 58,828 46,527 44,672 53,238 158,844 183,248 187,708 171,647 28,566 23,059 18,534 20,195 33,871 34,270 33,152 30,731 6,247 6,191 6,243 6,348 3,337 3,772 3,372 3,545 205,026 196,440 178,413 177,715 47,459 50,104 53,992 54,107 2,598 2,917 2,326 1,170 2,744 2,900 3,080 2,725 37,721 36,200 37,306 38,640 35,281 38,491 36,173 30,497 344 324 | 329 i 318 | 5,483 5,459 6,752 5,902 Total. 1,697 1,293 1,245 1,370 256,908 267,155 279,936 271,814 36,777 40,591 41,305 41,495 658,359 665,607 647,915 631,593 3. MEMBER BANKS IN F E D E R A L R E S E R V E BRANCH CITIES. [In thousands of dollars.] RichSt. New CleveKansas Dallas San Atlanta Chicago land mond Louis City York Francisco, district.i district .2 district.* district.« districts district.* district.? districts district . Number of reporting banks: Apr.23 Apr. 30 May 7 Mayl4 United States bonds to secure circulation: Apr. 23 Apr. 30 May 7 May 14 Other United States bonds, including Liberty bonds: Apr/23 Apr. 30 May 7 May 14 United States Victory notes: Apr.23 Apr. 30 May7 May 14 United" States certificates of indebtedness: Apr.23 Apr.30 May7 May 14 -Total United States securities owned: Apr.23 Apr.30 May7 Mayl4 Loans secured by Government war obligations, including rediscounts with Federal Reserve Bank: Apr.23 Apr.30 May 7 May 14 Loans secured by stocks and bonds, other than United States securities: Apr.23 Apr.30 May7 May 14 All other loans and investments, including rediscounts with Federal Reserve Bank: Apr.23 Apr.30 May7." May 14 Total. 198 198 198 199 10 10 10 10 1,599 1,599 1,599 1,599 24,896 24,896 24,896 24,896 5,608 5,608 5,608 5,608 6,915 6,915 6,915 6,915 1,905 1,905 1,905 1,905 5,280 5,280 5,280 5,280 4,187 4,187 4,387 4,387 7,108 7,108 7,108 7,108 13,305 13,305 13,305 13,305 70,803 70 803 71,003 11,093 11,076 11,089 10,937 41,248 40,999 41,854 41,673 9,144 9.311 9,352 23,641 23,783 23,693 23,744 17,320 17,475 17,119 17,510 8,282 7,321 7,550 7,296 6,246 6,248 6,056 6,053 7,302 7,298 7,272 7,243 21,119 21,606 21,486 21,939 145,395 145,117 145,471 145,491 2,862 2,879 2,726 2,873 13,946 13,920 14,066 14,090 3,089 3,035 2,954 2,958 4,814 3,828 3,532 3,488 18,618 18,518 18,484 18,573 2,199 2,111 2,165 2,100 840 741 777 642 1,266 1,245 1,245 1,270 7,902 7,683 7,695 7,980 55,536 53,960 53,644 53,974 12,103 12,100 12,045 12,014 17,538 17,563 15,614 15,456 6,545 6,544 6,590 6,430 14,737 14,056 14,183 14,268 29,857 31,708 31,885 33,604 1,926 1,700 1,639 1,811 3,173 3,210 3,250 3,258 4,413 4,413 4,395 4,395 14,965 14,690 14,713 15,315 105,257 105,984 104,314 106,551 27,657 27,654 27,459 27,423 97,628 97,378 96,430 96,115 24,386 24,498 24,504 24,092 50,107 48,582 48,323 48,415 67,700 69,606 69,393 71,592 17,687 16,412 16,634 16,487 14,446 14,386 14,470 14,340 20,089 20,064 20,020 20,016 57,291 57,284 57,199 58,539 376,991 375,864 374,432 377,019 10,615 10,535 12,348 11,162 51,757 51,086 48,943 48,391 11,214 11,416 11,196 11,389 16,335 16,651 16,365 16,969 14,967 14,803 14,602 13,887 10,986 11,157 11,848 11,415 10,413 10,143 9,810 9,872 2,132 2,060 2,063 2,128 16,547 15,723 17,156 16,348 144,966 143,574 144,331 141,561 52,758 52,624 53,446 53,384 161,285 160,571 159,940 158,584 31,472 32,230 33,060 33,009 41,103 41,096 42,059 41,367 61,514 61,877 61,979 61,771 33,439 33,916 35,197 34,976 21,981 22,132 22,109 21,989 14,538 14,513 15,401 15,213 72,267 73,764 74,231 73,953 490,357 492,723 497,422 494,246 180,615 181,564 180,357 183,066 443,583 443,262 442,485 450,772 117,653 119,179 119,916 119,540 260,660 269,864 275,444 264,989 319,263 324,310 324,072 327,041 129,837 125,850 124,567 124,838 164,481 165,108 160,734 161,198 83,767 82,268 79,575 81,988 454.125 457,820 456,835 463,163 2,153,984 2,169,225 2,163,985 2,176,595 7i,ooa 656 JUNB, 1920. FEDERAL, RESERVE BULLETIN. Principal resource and liability items of member banks in leading cities, including member banks located in Federal Reserve Bank cities andin Federal Reserve Branch cities, as at close of business on Fridays, from Apr. 23 to May 14,1920—Con. 3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES—Continued. [In thousands of dollars.] New CleveRichSt. Kansas San Atlanta Chicago Dallas Francisco land York mond Louis City district.1 district .2 district.* district.* district.* district.* district/ district.1 district.* Total loans and investments, including rediscounts with Federal Reserve Bank: Apr.23 Apr. 30 May7 May 14 Reserve balance with Federal Reserve Bank: Apr.23 Apr. 30 May7 May 14 Cash in vault: Apr.23 Apr.30 May7 May 14 Net demand deposits on which reserve is computed: Apr.23 Apr. 30 May7 May 14 Time deposits: Apr. 23 , Apr.30 May7 May 14 Government deposits: Apr.23 Apr.30 May 7 , May 14 Bills payable with Federal Reserve Bank: Secured by United States war obligationsApr. 23 Apr.30 May7 May 14 All other— Apr.23 Apr.30 May7 May 14 Bills rediscounted with Federal Reserve Bank: Secured by United States war obligations— Apr.23 Apr.30 May7 May 14 All other— Apr.23 Apr.30 May7 Mayl4 1 Buffalo. a Pittsburgh and Cincinnati. * Baltimore. 4 6 Total. 271,645 272,377 273,610 275,035 754,253 752,297 747,798 753,862 184,725 187,323 188,676 188,030 368,205 376,193 382,191 371,740 463,444 470,596 470,046 474,291 191,949 187,335 188,246 187,716 211,321 211,769 207,123 207,399 120,526 118,905 117,059 119,345 600,230 604,591 605,421 622,003 3,166,298 3,181,386 3,180,170 3,189,421 18,313 17,277 16,894 18,417 50,590 51,898 52,122 50,782 11,865 13,007 12,937 13,155 19,338 20,863 21,307 19,971 26,954 27,556 28,130 31,227 10,324 9,766 10,012 10,040 13,865 14,262 16,639 15,045 9,113 8,883 8,651 8,556 40,443 41,530 40,958 42,403 200,805 205,042 207,650 209-,596 3,468 3,599 3,387 3,565 14,300 13,448 15,099 14,763 5,742 5,418 5,833 5,679 7,216 7,631 7,399 7,614 13,399 13,980 13,213 12,741 3,929 4,185 4,289 4,081 5,441 5,551 5,291 5,539 3,439 2,657 2,872 3,097 16,047 16,346 17,190 16,396 72.981 72; 815 74,573 73,475 170,696 176,090 177,079 178,320 479,156 478,197 474,563 479,727 110,149 111,180 111,243 110,020 183,377 184,916 181,208 180,763 202,812 212,183 199,880 215,720 89,426 88,269 89,711 88,763 130,612 128,586 125,447 130,388 70,674 70,182 70,467 312,715 1,745,639 309,394 1,759,489 302,996 1,732,309 318,672 1,772,840 57,420 52,151 53,353 53,890 119,484 119,665 118,473 118,829 18,033 18,472 19,915 19,983 89,448 88,678 88,565 88,780 223,129 223,579 224,229 224,753 40,356 40,316 40,948 40,490 48,843 49,005 49,450 49,480 21,906 21,854 22,114 22,079 253,591 254,294 255,293 258,702 872,210 868,014 872,340 876,986 1,252 1,064 1,064 426 4,289 3,639 3,639 1,468 326 277 277 109 3,829 3,210 3,060 2,359 1,300 1,105 1,105 442 453 384 398 153 236 201 201 79 1,100 934 934 374 705 600 455 224 13,490 11,414 11,133 5,634 21,621 20,621 16,918 19,285 22,439 28,100 35,058 35,602 17,836 18,176 18,879 19,431 32,221 30,884 31,007 32,395 34,969 38,479 38,999 37,345 8,282 8,296 8,483 9,034 5,323 5,616 6,780 5,963 7,880 7,980 6,923 7,188 14,122 14,250 14,873 15,128 164,693 172,402 177,920 181,371 2,232 2,685 2,717 1,926 735 60 60 60 85 85 285 285 3,052 2,890 3,122 2,271 31,048 30,898 33,090 31,148 1,300 1,337 3,100 2,643 10,785 10,699 10,451 9,401 4,166 4,051 3,924 4,779 4,834 4,973 5,319 2,703 2,688 2,640 2,168 4,104 4,041 4,505 4,554 1,927 1,476 1,277 1,354 286 245 251 209 1,335 1,412 1,842 1,576 9,278 9,431 8,954 7,412 11,316 9,169 8,974 8,833 13,714 13,928 12,715 13,388 31,636 35,929 38,614 37,038 7,868 8,983 11,095 7,869 22,668 18,151 18,107 18,012 20,201 21,223 19,188 19,489 6,171 6,220 5,790 5,807 14,545 18,107 22,671 21,547 137,397 141,141 146,108 New Orleans, Birmingham, Jacksonville, and Nashville. 7 Omaha and Denver, Detroit. s El Paso and Houston. « Louisville, Memphis, and Little Rock. 9 Spokane, Portland, Salt Lake City, Los Angeles, and Seattle. 657 FEDERAL RESERVE BtTLLETIN. , 1920. IMPORTS AND EXPORTS OF GOLD AND SILVER. Gold imports into and exports from the United States, distributed by countries. Imports. During 10 days ending Apr. 20, 1920. During During 10 days month ending Apr., Apr. 30, of1920. 1920. Exports. During From From 10 days Jan. 1 to Jan. 1 to ending 10, May 10, May 10, May 1920. 1919. 1920. During 10 days ending Apr. 20, 1920. During 10 days ending Apr. 30, 1920. During During days month 10 ending of Apr., Mav 10, 1920. 1920. From Jan. 1 to May 10, 1920. $335,906 $335,906 Belgium 7,246 7,246 France Germany Iceland Italy Netherlands Norwav $4,493 11,810 Portugal Switzerland United Kingdom3,008,255 4,663,467 44,966,865 England 6,673 56,029,000 $10,853 $2,078 Total Europe... 3,351,407 4,667,960 45,321,827 11,917 57,610,438 10,853 2,078 2,012 226,586; 462,143 116,655 2,223,783 British Honduras Canada Costa Rica Honduras Nicaragua Panama Salvador 85,493 3,679 6,142 17,334 16,019 140,715 Newfoundland.. . . Cuba British West Indies Virgin Islands of U.S. Dominican Republic. Total N o r t h America Argentina Bolivia Brazil Chile Colombia Ecuador British Guiana Dutch Guiana . . Peru Uruguay Venezuela Total S o u t h America 134,579 22,873 5,850 72,783 565 2,326 269,382 30,159 30,159 $335,906) 27,187 S912 40,000 1,161,428 3,324 3,324 13,593 1,783 1,100 20 364,492 207,760 18,909,820 7,564,947 3,679 28,530 116,501 257,952 90,228 44,001 27,744 111,547 25,512 39,859 352,172 628,933 1,771 30,160 346 117,586 305,101 21,641 1,777,184 1,698,651 341,412 388,492 61 2,976 565 4,500 877 18,838 2,326 14,428 18,128 850,708 660,956 21,359,085 10,647,991 78,746 150,049 79,066 150,049 124,874 2,423 10 150 92 91,269 128,538 25.693 5,542 4,585 197,467 253,710 253,412 22,060 48,023 78,217 62,093 329,577 103,150 501,441 233,676 68,352 15,272 458,724 22 666 22 nnn 33,966 57,136 70,961 298,818 454,206 238,976 3,328 107,298 Total Asia .. 3,328 107,298 1,069 $88,889 $153,845 $10,000 912 201,339 i,ioo 13,235' 697,510 20,000 20,000 20,000 381,232 1,790,365 215,505 12,828,676 25,000 25,000 10,000 16,000 555,077 2,297,508 332,160 15,142,459 18,950,000 7,400,000 29,850,000 89,995,000 811,399 30,000 90,000 2,000,000 2,000,000 51,500 1,764,950 100,000 301,355 10,000 1,523,300 1,533,300 474,000 2,000 567,000 565,000 2,268,802 1,042,410 1,000,000 1,302,956 2,302,956 10,000,000 718,915 2,356,675 4,235,045 i,*59i,'35O 500,000 1,260 346,398 220,370 69,712 107,439 256,527 8,150 175,739 2,000 2,000 1,000 3,413,624 25,000 250,000 400,000 700,000 130,000 7,940 3,762,566 3,858,795 5,005 19,795 277,706 12,850,000 334,000 4,305,650 104,659,000 8,466,951 16,286,750 4,724,013 6,683,454 7,845,105 22,676,362 7,262,067 1,260 2,270,062 11,042,410 2,595,270 5,236,431 10,403,251 2,665,350 65,477,751 104,596 $340,002 19,666 318,541 1,149,182 1,452,645 20,950,000 7,430,000 31,940,000 1,260 China British India Straits Settlements Dutch East Indies.. Hongkong Japan New Ztealand Philippine Islands British South Africa. British West Africa... Portuguese Africa $137 From Jan. 1 to May 10, 1919. 901,000 901,000 28,038 Total all countries 3,650,948 5,209,082 46,838,635 1,062,386 183,062,974 23,594,315 24,356,669 13,223,508 44,644,837 2,999,522 2185,533,834 13,130,517 1 Includes: Ore and base bullion, $7,683,000; United States mint or assay office bars, $1,000; bullion refined, $57,606,000; United States coin, $1,440,000; foreign coin, $16,333,000. 2 Includes: Domestic exports—ore and base bullion, $7,000; United States mint or assay office bars, $13,247,000; bullion refined, $912,000; coin, $171,106,000. Foreign exports-coin, $262,000. Excess of gold exports over imports since Jan. 1,1920, $102,471,000. Excess of gold imports over exports since Aug. 1,1914, $677,284,000. Excess of gold exports over imports since June 10, 1919, $423,735,000. 658 FEDEEAL RESERVE BULLETIN. JUNE, 1920. Silver imports into and exports from the United States, distributed by countries. Exports. Imports. During 10 days ending Apr. 20, 1920. Denmark France Netherlands Norway Portugal Sweden Switzerland . Uni-ted KingdomEngland Total Europ During 10 days ending Apr. 30, 1920. $36,866 i93 $517 During From During 10 days Jan. 1 to month of April, ending May 10, May 10, 1920. 1920. 1920. $36,866 $6,783 193i 4,892: 14,260 39fi $55,791 369 14,453 5,288 From Jan. 1 to May 10, 1919. China British India Dutch East Indies French East Indies... Hongkong Russia in Asia Total Asia New Zealand Philippine Islands British South Africa.. British West Africa... Portuguese Africa During During 10 days month ending of April, May 10, 1920. 1920. $42 260 284,838 194,189 483,456 5,765 519,759 18,434 266,790 321,897 194,706 525,407 ( 27,204 595,660 26,761 309,050 749,225 1,183,675 114,050 279,378 357,224 924,410 82,565 6,786 2,974 12,828 38,251 2,000 490,958 2,044 530,979 16,044 12,544 575,800 $749,225 1,141,415 $114,050 3,666 103,903 169,951 1,678,325 3,132 3,463 6,789 43,300 114,250 1,699,025 402,250 17,255 6,900 561,773 2,670 664,619 75,935 47,500 38 277 7AQ Qfi7 4,000J 25,000 132,000 15,000 4,000 403,951 955,012 1,839,012 172,342 8,431,912 810 810 1,701 1,530 1,530 2,333 1,347,781 2,000 378 1,002 1,946 3,400 10 000 2,340 2,340 378 15,036 7,346 600,089 43,307,131 223,211 106,312,750 390,401 80,370 743,770 185,400 870,340 1,093,806 2,813,859 266,931 4,058,373 973,642 14,849,538 970 970 2,212,424 11,660 390,401 2,244,689 4,744,97613,385,111 1,241,543 62,439,223 109,136,923 5,498 76 822 2,400 68,331 781,081 431,000 1,188,949 3,570,800 9,827,482 1,650 36,015 5,001,365 544,473 64,547 6 567 11,974 1,664,701 6,683,469 1,480.566 12,111,857 105,968 622,837 1,349,635 2,492,350 1,122,971 7,927,507 4,538,314 169,951 1,438,306 15,000 205,513 15,000 61,854 55,666 11,800 36,015 2,670 $42,260 . .500 351,800 6,380 6,380 6,380 847,279 1,913,575 1,035,259 5,594,394 3,816,486 273 36,015 From Jan. 1 to May 10, 1919. 483,940 i 10,327 1.386 655,303 6,008 293 23 32,992 1,539,672 100,284 38,993 20,854 8,310 From Jan. 1 to May 10, 1920. $326,615 4,500,313 $42 260 Total North 2,016,491 2,724,003 7,514,482 2,083,567 34,448,954 24,800,739 America Total South America During 10 days ending Apr. 30, 1920. $8,327 8,950 14,810 39,170 British Honduras 182,935 66,822 1,588,848 3,341,256 62,805 161,121 286,456 Canada 608 5,600 6,208 3,532 20,236 16,997 Costa Rica 19,980 Guatemala 62,097 203,878 429,540 292,500 1,297,630 1,115,717 Honduras 11,372 279,728 490 381,008 Nicaragua , 583 28,252 68,262 Panama 40,175 165,760 47,513 25,6ii 3,471,060 176,481 Salvador 1,842,885 2,205,230 6,560,327 1,694,917 27,571,095 19,466,772 Mexico 11 Newfoundland 2.296 6,941 960 23 British West Indies... 40 194 4Q O O 4 13,249 13,249 272 Cuba Virgin Islands of United States 84,8001 84,800 84,800 Dominican Republic. 1,000! 1.000 1,000 Dutch West Indies French West Indies 20 Haiti Argentina Bolivia Brazil Chile Colombia Ecuador British Guiana Dutch Guiana Peru Venezuela During 10 days ending Apr. 20, 1920. 2,400 5 480 17,771 Total all coun2,961,225 4,304,359 10,705,322 3,302,073 144,736,633 29,856,306 2,957,690 6,453,953 16,412,538 1,528,313 2 72,372,217 122,603,907 tries 1 Includes: Ore and base bullion, $35,059,000; United States mint or assay office bars, $3,000; bullion refined, $3,031,000; United States coin, $215,000; foreign coin, $6,428,000. 2 Includes: Domestic exports—ore and base bullion, $5,000; United States mint or assav office bars, $3,411,000; bullion refined, $42,312,000- coin, $12,977,000. Foreign exports—ore and base bullion, $1,000; bullion refined, $10,560,000; coin, $3,106,000. Excess of silver exports over imports since Jan. 1,1920, $27,636,000. Excess of silver exports over imports since Aug. 1,1914, $457,008,000. JUNE, 1920. 659 FEDERAL, RESERVE BULLETIN. Estimated general stock of money, money held by the Treasury and by the Federal Reserve System, and all other money in the United States May 1, 1920. General stock of money in the United Gold coin (including bullion in Treasury)2. Gold certificates Standard silver dollars. Silver certificates Subsidiary silver Treasury notes of 1890 United States notes Federal Reserve notes Federal Reserve Bank notes.. National-bank notes Total: May 1,1920 Apr. 1,1920 Mar. 1,1920 Feb. 1,1920 Jan. 1,1920 July 1,1919 Jan. 1,1919 July 1,1918 Jan. 1,1918 July 1,1917 Held in the by or for Held outside States United States Held Federal Re- United and Treasury as Banks Treasury assets of the serve Federal ReGovernment, i and agents. serve Svstem. $2,646,615,750 $390,410,080 268,829,252 8,'8i5,803 $1,291,130,126 299,949,600 3 59,696,847 15,341,998 255,916,496 7,155,789 346. 681,016 3,326; 188,020 188. 330,600 723, 392,772 11,823,117 24,946,767 3,110,240 42,666,436 4 59,006,826 238,786,490 10,226,606 7, 755,953,906 7,761, 146,018 311,880 7,744, 769,263 7,961, 320,139 7,588, 473,771 7,780, 793,606 6,742, 225,784 6,256, 198,271 5,480, 009,884 488,928,232 503,309,638 546,960,744 625.142,749 604,888,833 578,848,043 454,948,160 356.124,750 277,043,358 253,671,614 1,976, 153,519 1,984, 495,464 1,981, 490,058 2,009, 651,988 2,044! 422,303 2,167' 280,313 2,220; 705,767 2,018, 361,825 1,723, 570,291 1,280, 880,714 2,015,026 Amount per capita outside United States Treasury and Federal Reserve System. $389,972,735 275,153,209 74,889,603 108,416,021 248,760,707 1,668,980 275,851,073 3,062,454,763 i 174,993,754 678,711,310 | 5,290, 872,155 5,273, 340,916 5,277, 861,078 5,109, 974,526 5,312: 009,003 4,842' 345,415 5,105! 139,679 4 367: 739,209 4 } 255!584,622 3,945: 457,556 $49.45 49.33 49.41 47.88 49.81 45.00 47.83 41.31 40.53 37.88 1 Includes reserve funds held against issues of United States notes and Treasury notes of 1890 and redemption funds held against issues of national bank notes, Federal Reserve notes, and Federal Reserve Bank notes, but excludes gold and silver coin and bullion held in trust for the redemption of outstanding gold and silver certificates and Treasury notes of 1890. 2 Includes balances in gold settlement fund standing to the credit of the Federal Reserve Banks and agents. 34 Includes subsidiary silver. Includes Treasury notes of 1890. FEDERAL ^RESERVE BANK DISCOUNT RATES. Rates on paper discounted for member banks approved by the Federal Reserve Board up to June 1, 1920. Discounted bills maturing within 90 days (including member banks' 15-day collateral notes) secured b y Federal Reserve Bank. Treasury cer- Liberty tificates of bonds and indebtedVictory ness. notes. Boston New York ... Philadelphia . Cleveland Richmond . . Atlanta Chicago St. Louis Minneapolis . Kansas City . Dallas San Francisco 5 54 ;s4 15* 15* 54 5 5 51 54 6 54 Discounted bills secured otherwise than by Government war obligations, also unsecured, maturing within— Bankers' Trade acceptances acceptances maturing 90 days (inmaturing within within cluding 91 to 180 90 days. 3 months. member days (agricultural and banks' live-stock 15-day paper). collateral notes). 5 6 54 54 5} 6 6 54 54 54 54 54 54 5f 54 54 54 6 6 6 6 6 7 6 5| 6 6 7 6 64 6 i 5i per cent on paper secured by 51 per cent certificates, and 5 per cent on paper secured by 4f and 5 per cent certificates. . NOTE —Rates shown for Atlanta, St. Louis, Kansas City, and Dallas are normal rates, applying to discounts not mexcess of basic linesfixedfor each member bank by the Federal Reserve Bank. Rates on discounts in excess of the basic line are subject to a h Per cent progressive increase for each 25 per cent by which the amount of accommodation extended exceeds the basic line. 660 FEDERAL, RESERVE BULLETIN. JUNE, 1920. EARNINGS AND DIVIDENDS OF STATE BANK AND TRUST COMPANY MEMBERS. Abstract of reports of earnings and dividends of State bank and trust company members of the Federal Reserve System for the last six months of 1919, arranged by Federal Reserve districts. [In thousands of dollars.] District District District District District District District No. 2 No. 1 No. 3 No. 4 No. 5 No. 7 No. 6 (122 (38 (36 (97 (46 (325 (64 banks). banks). banks). banks). banks). banks). banks)i Capital stock paid in Surplus Total capital and surplus District District District District District No. 8 No. 9 No. 10 No. 11 No. 12 (68 (86 (47 (114 (137 banks). banks). banks). banks). banks). 30,475 149,905 33,910 170,218 23,225 47,230 36,478 65.393 11,594 7,691 22,184 13,369 83,688 73,233 24,400 19,954 8,066 2,389 5,710 2,643 7,533 2,858 32,966 15,964 436,224 454,852 64,385 320,123 70,455 101,871 19,285 35,553 156,921 44,354 10,455 8,353 10,391 48,930 891,076 Gross earnings: Exchange and collection charges Other earnings Total gross earnings Expenses: Salaries and wages Interest and discount on borrowed money . . Interest on deposits Taxes Other expenses Total expenses Net earnings since last report Recoveries on charged-off assets Total net earnings and recoveries :. Losses charged off: On loans and discounts ... On bonds, securities, etc Other losses Total losses charged off Total United States (1,180 banks). 15,176 72 209 1,716 82,184 550 2,075 12,202 8.844 ' 83 92 1,885 16,736 376 230 5,266 3,654 70 61 676 7,435 661 155 1,140 39,438 746 553 3,652 9,313 391 266 1,268 3,049 76 96 135 2,890 61 171 304 2,349 122 2 67 16,150 436 185 1,671 SI 207,218 3,644 4,095 29,982 17,173 97,011 10,904 22,608 4,461 9,391 44,389 11,238 3,356 3,426 2,540 18,442 244,939 2,891 14,533 1,565 3,238 674 1,486 7,165 1,851 612 623 622 3,154 38,414 750 6,531 1,248 1,463 5,331 33,583 4,099 9,344 895 2,666 592 967 915 7,823 1,037 2,083 373 1,176 390 391 998 2,120 599 1,421 2,015 14,593 2,999 4,580 1,067 2,725 779 1,404 140 1,107 187 388 176 1,192 190 595 256 308 17S 392 507 7,141 742 1,981 13,423 80,965 13,040 25,009 12,883 66,890 6,685 15,096 3,004 6,624 31,352 7,826 2,434 2,776 1,756 13,525 170,851 4,290 129 30,121 785 4,219 92 7,512 469 1,457 169 2,767 88 13,037 414 3,412 119 922 45 650 70 784 115 4,917 314 74,088 2,809 4,419 30,906 4,311 7,981 1,626 2,855 13,451 3,531 967 720 899 5,231 76,897 439 997 447 1,989 9,927 1,330 17 912 89 1S4 1,231 425 107 264 32 308 127 182 481 1,789 745 216 627 335 177 34 75 105 48 14 211 19 85 886 1,056 413 5,120 17,031 4,172 1,883 13,246 1,018 1,840 403 617 3,015 1,178 286 167 315 2,355 26,323 Net addition to profits 2,536 17,660 3,293 6,141 1,223 2,238 10,436 2,353 681 553 584 2,876 50,574 Dividends paid Ratio of dividends paid to capital stock (annualbasis) percent.. Ratio of dividends paid to capital and surplus (annual basis), per cent Ratio of net profits to capital and surplus (annual basis). .per cent.. 2,028 13,105 2,209 3,351 651 2,219 5,582 1,820 387 648 539 2,382 34,921 13.3 17.5 19.0 18.4 11.2 20.0 13.3 14.9 9.6 22.7 14.3 14.5 16.0 6.3 8.2 6.3 6.6 6.8 12.5 7.1 8.2 7.4 15.5 10.4 9.7 7.8 7.9 11.0 9.3 12.1 12.7 12.6 13.3 10.6 13.0 13.2 11.2 11.8 11.4 1 One bank not reporting. INDEX. Acceptances: Page. * Discount rates: Bankers' acceptances secured by documentary Discussion of 554. 557 drafts on foreign buyer 610 In effect June 1 659 Banks granted authority to accept up to 100 per Prevailing in various centers.. 622 cent of capital and surplus 608 Earning assets held by Federal* Reserve Banks Conference of bankers with Board to discuss during April 640 acceptance credits 559 Earnings and dividends of State bank and trust Development of acceptance credit 559 company members 660 Purchased by Federal Reserve Banks during Export trade, discussion of 562 April 641, 642 Failures, commercial, reported 609 Argentina, banking and financial conditions in 592 Federal Advisory Council, conference of, with Bank loans to correspondents, methods followed by Federal Reserve Board 566, 579 city banks in granting 584 Federal land bank, notes of, eligibility for redisBanking situation, discussion of 565 count 609 Branches, foreign, of American banks, as of May 18, Federal Reserve Banks: 1920 606 Discount and open-market operations of 638 Business and financial conditions during May 567-579 Resources and liabilities of 645 Prices and credit 567 Federal Reserve Board: Wholesale trade activity in the West 570 Appointment of Edmund Platt as member of.. 566 Level of interest and discount rates 571 Reply to Senate resolution relative to discount Effects of railroad strike 574 policy of Federal Reserve Banks 582 Case, Justice, opinion by, on exercise of trust powers Federal Reserve note account of Federal Reserve by national banks located in Connecticut 610 Banks and agents 649 Certificates of indebtedness issued during May 553 Fiduciary powers: Charters issued to national banks during May 609 Exercise of, by national banks located in ConCharts: necticut; opinion by Justice Case 610 Debits to individual account, January, 1919Granted to national banks 608 May, 1920 605 Financing of the Treasury 553 Par point map 644 Foreign banking outlook.' 564 Check clearing and collection: Foreign branches of American banks, as of May 18, Map showing States in which banks remit a t par. 644 1920 606 Number of nonmember banks on par list 643 Foreign exchange rates 563, 564 Operation of the system April 16-May 15, Argentina 598 1920 ". \ . . 642-644 Foreign credits, discussion of 562 Clearing-house bank debits: German indemnity figures 563 January, 1919-May, 1920 603 German Reichsbank, report of, for year 1919 601 April-May, 1920 635 Gold imports and exports 564, 657 Commercial failures reported 609 Gold settlement fund, summary of transactions, Condition reports: Feb.-May, 1920. ; 633 Banco de la Nacion, Argentina 597 Government financing during May 553 Federal Reserve Banks 645 Governor of Federal Reserve Board: Member banks in selected cities 651 Address of, before conference of Advisory German Reichsbank, for year 1919 601 Council and Class A directors 579 Conference of Advisory Council and Class A direcReply of, to Senate resolution relative to distors with Federal Reserve Board 579 count policy of Federal Reserve Banks 582 Connecticut, exercise of trust powers by national Imports and exports: banks located in 610 Gold 564, 657 Credit situation, discussion of 553-556 Silver 565, 658 Currency, stock of, in the United States 659 Index numbers: Debits to individual account: International price index 616 January, 1919-May, 1920 603 Retail trade in the United States 614 April-May, 1920 635 Wholesale prices abroad 616 Directors, Class A, conference of, with Board... . 566, 579 Wholesale prices in the United States. 611 Discount and open market operations of Federal Interest and discount rates: Reserve Banks 638-642 Discussion of 554, 557 Acceptances purchased during April 641, 642 Prevailing in various centers 622 Bills "discounted during A pril . 641 Reports by Federal Reserve agents 571 Bills held on last Friday in April .' 641 Joint stock land bank, notes of, eligibility for redisCollateral notes held on last Friday in A p r i l . . . 641 count *. 609 Dollar exchange bills purchased during April.. 641 Law department: Earning assets held during April 640 Exercise of trust powers by national banks loMember banks, number of, accommodated 639 cated in Connecticut 610 Discount policy of Federal Reserve Banks, reply Liberty bond quotations during the month 555 of Board to Senate resolution regarding 582 Loans, methods followed by city banks in granting.. 584 II INDEX. Page. Map showing States in which banks remit at par 644 Maturities: Acceptances purchased by Federal Reserve Banks \ 641 Bills discounted by Federal Reserve Banks.. 641, 649 Certificates of indebtedness purchased by Federal Reserve Banks 641 Member banks: Earnings and dividends of State banks and trust companies 660 Number discounting during April 639 Number in each district 639 Resources and liabilities of. in selected cities.. 651 State banks and trust companies admitted to system during May 607 Money, stock of, in the United States 659 National banks : Charters issued to, during May 609 Fiduciary powers granted to 608 Foreign branches of 606 Open-market operations of the Federal Reserve Banks 638 Par collections. (See Check clearing and collection.) Physical volume of trade 624 Platt, Edmund, appointed member of Federal Reserve Board 566 Prices: Discussion of 561 International price index 616 Reports of Federal Reserve agents on 567 Wholesale, abroad 616 Wholesale, in the United States 611 Production, volume of 561 Railroad car shortage 560 Resolutions adopted by conference of Advisory Council and Class A directors relative to 581 Railroad strike, effects of 574 Rates : Discount, in effect June 1 558, 659 Earning assets held by Federal Reserve Banks. 640 Foreign exchange , 563, 564, 598 Interest, prevailing in various centers 622 Reichsbank, report of, for year 1919 601 Reserve position of the Federal Reserve Banks... 554 Resolution of Senate on discount policy of Federal Reserve Banks • 582 Resolutions adopted by conference of Advisory Council and Class A directors 581 Resources and liabilities: Banco de la Nacion, Argentina ,. 597 Federal Reserve Banks 645 Member banks in selected cities 651 Retail trade index 614 Rulings of the Federal Reserve Board: Bankers' acceptances secured by documentary drafts on foreign buyer 610 Eligibility of notes of Federal land bank or joint stock land bank for rediscount 609 Senate resolution relative to discount policy of Federal Reserve Banks, reply of Board to 582 Silver: Imports and exr>orts 565, 658 Purchase of, under Pittman Act 563 State banks and trust companies: Abstract of earnings and dividends of member banks 660 Admitted to system 607 Study by Division of Analysis and Research of methods used by city banks in granting accommodation to correspondents 584 Switchmen's strike, effects of 574 Trade: Export, discussion of 562 Physical volume of 624 Retail, index of 614 Treasury financing during May 553 War Finance Corporation, suspension by, of loans in aid of exports 562 Wheat forecasts, by Bureau of Crop Estimates 606 Wholesale prices: Abroad 616 In the United States 611 International price index 616 Wholesale trade activitv in the West 570 i NEB To) ™ _ KANSAS CUT KANS. FEDERAL RESERVE DISTRICTS ® FEDERAL RESERVE BANK CITIES O FEDERAL RESERVE BRANCH CITIES The branches at Helena, Mont., and Oklahoma City, Okla., have been authorized by the Federal Reserve Board but are not yet open for business.
@FedFRASER