Full text of Federal Reserve Bulletin : June 1921
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FEDERAL RESERVE
BULLETIN
(FINAL EDITION)
ISSUEQ^Y THE
FEDERAL RESERVE BOARD
AT WASHINGTON
JUNE, 1921
WASHINGTON
GOVERNMENT PRINTING OFFICE
1921
FEDERAL RESERVE BOARD.
EX OFFICIO MEMBERS.
A. W. MELLON,
Secretary of the Treasury, Chairman.
D. R. CRISSINGER,
Comptroller of the Currency.
W. P. G. HARDING, Governor.
EDMUND PLATT, Vice Governor*
ADOLPH C. MILLER.
CHARLES S. HAMLIN.
JOHN R. MITCHELL.
W. W. HOXTON, Secretary.
WALTER S. LOGAN, General Counsel,
W. L. EDDY, Assistant Secretary.
W. M. IMLAY, Fiscal Agent.
H. PARKER WILLIS,
¥. HERSON,
Chief, Division of Examination and Chief Federal
Reserve Examiner.
J. E. CRANE,
Acting Director, Division of Foreign Exchange.
II
R. G. EMERSON, Assistant to Governor.
Director, Division of Analysis and Research.
M. JACOBSON, Statistician.
E. A. GOLDENWEISER, Associate Statistician.
E. L. SMEAD,
Chief, Division of Reports and Statistics.
OFFICERS OF FEDERAL RESERVE BANKS.
Federal Reserve Bank of—
Chairman.
Deputy governor.
Governor.
C. C. Bullen
W. W. Paddock
J. H. Case
L. F. Sailer
G. L. Harrison
E. R. Kenzel
Boston
Frederic H. Curtiss
New York
Pierre Jay
Philadelphia
Cleveland
Richmond
R. L. Austin
D.C.Wills
Caldwell Hardy
George W. Norris.
E. R. Fancher .
George J. Seay
Atlanta
Chicago
Joseph A. McCord.
Wm. A. Heath
M. B. Wellborn .
J. B. McDougal
St. Louis
Minneapolis
Kansas City
Dallas .
San Francisco
Wm. McC. Martin
JohnH. Rich
Asa E. Ramsay
Wm. F. Ramsey ... .
John Perrin
D.C. Biggs
R. A. Young
J. Z. Miller, jr
R. L. Van Zandt ...
J. IJ. Calkins
Chas. A. Morss
W. Willett.
L. H. Hendricks
*
J. D. Higginsx
A. W. Gilbart.1 1
Leslie R. Rounds.
J. W. Jones.*
W. A. Dyer.
H. G. Davis.
Geo. H. Keesee.
Wm. H. Hutt,jr
M. J. Fleming
Frank J. Zurlinden
C. A. Peple
A. S. Johnstone 3
John S. Walden *
L. C. Adelson
J. L. Campbell
C.R. McKay
S. B.Cramer
M. W. Bell.
W. C. Bachman.i
F. J.Carr.i
K. C. Childs.i
J. H. Dillard.i
D. A. Jones.i
0. J. Netterstrom.1
A. H. Vogt.
Clark Washburne.1
J. W. White.
Frank C. Dunlop.*
B. V. Moore.
J. W. Helm.
Sam R. Lawder.
W. N. Ambrose.
0. M. Attebery
W.B. Geery
S. S. Cook
C. A. Worthington
Lynn P. Talley...
Wm. A. Day
3
Ira
Clerk
L. C.
Pontious8
2 Assistant to governor.
i Controller.
Cashier.
a Assistant deputy governor.
MANAGERS OF BRANCHES OF FEDERAL RESERVE BANES.
Federal Reserve Bank of—
New York:
Buffalo branch
Cleveland:
Cincinnati branch
Pittsburgh branch
Richmond:
Baltimore branch
Atlanta:
New Orleans branch
Jacksonville branch
Birmingham branch
Nashville branch
Chicago:
Detroit branch
St. Louis:
Louisville branch
Memphis branch
Little Rock branch
Manager.
Ray M. Gidney.
L. W. Maiming.
Geo. De Camp.
Morton M. Prentis.
Marcus Walker.
Geo. R. De Saussure.
A. E. Walker.
J. B. McNamara.
R. B. Locke.
W. P. Kincheloe.
J. J. Heflin.
A. F. Bailey.
Federal Reserve Bank of—
Minneapolis:
Helena branch
Kansas City:
Omaha branch
Denver branch
Oklahoma City branch
Dallas:
El Paso branch
Houston branch
San Francisco:
Los Angeles branch
Portland branch
Salt Lake City branch
Seattle branch
Spokane branch
Manager.
0. A. Carlson.
L. H. Earhart.
C. A. Burkhardt.
C. E. Daniel.
W. C. Weiss.
E. F. Gossett.
C. J. Shepherd.
Frederick Greenwood.
R. B. Motherwell.
C. R. Shaw.
W. L. Partner.
SUBSCRIPTION PRICE OF BULLETIN.
The FEDERAL RESERVE BULLETIN is the Board's medium of communication with
member banks of the Federal Reserve System and is the only official organ or periodical
publication of the Board. It is printed in two editions, of which the first contains the
regular official announcements, the national review of business conditions, and other
general matter, and is distributed without charge to the member banks of the Federal
Reserve System. Additional copies may be had at a subscription price of $1.50 per
annum.
The second edition contains detailed analyses of business conditions, special articles,
review of foreign banking, and complete statistics showing the condition of Federal
Reserve Banks. For this second edition the Board has fixed a subscription price of
$4 per annum to cover the cost of paper and printing. Single copies will be sold at
40 cents. Foreign postage should be added when it will be required. Remittances
should be made to the Federal Reserve Board.
No complete sets of the BULLETIN for 1915, 1916, 1917, or 1918 are available.
ill
TABLE OF CONTENTS.
General summary:
Page.
m
Review of the month
645
Business, industry, and finance, May, 1921
,
656
Condition of the acceptance market
667
Summary of Governor Harding's speech
671
German reparations
674
The gold situation
676
Practice under commercial letters of credit
681
Business and financial conditions abroad: England, France, Italy, Germany, Sweden
•
689
Official:
Rulings of the Federal Reserve Board
699
Law department
700
State banks admitted to system
698
Fiduciary powers granted to national banks
688
Banks granted authority to accept up to 100 per cent of capital and surplus
670
Charters issued to national banks
698
Price movement and volume of trade:
Domestic—
Wholesale prices in the United States
702
Foreign trade
706
Physical volume of trade
707
Retail trade
720
Wholesale trade
722
Commercial failures
698
Foreign—
Comparative wholesale prices in principal countries
723
Comparative retail prices in principal countries
727
Foreign trade—United Kingdom, France, Italy, Sweden, and Japan
728
Banking and financial statistics:
Domestic—
Discount and open-market operations of Federal Reserve Banks
730
Condition of Federal Reserve Banks
736
Federal Reserve note account
742
Condition of member banks in leading cities
743
Bank debits
750
Operations of the Federal Reserve clearing system
755
Gold settlement fund
756
Gold and silver imports and exports
759
Money outside the Treasury and Federal Reserve System
762
Discount and interest rates in various centers
761
Discount rates approved by the Federal Reserve Board
762
Earnings and dividends of State bank and trust company members
763
Foreign—
England, France, Italy, Germany, Sweden, and Japan
764
Charts:
Net earnings of Federal Reserve Banks in 1920, related to daily average paid-in capital, surplus, members'
reserve deposits, and Federal Reserve note circulation
673
Earning assets, Federal Reserve note circulation, and cash reserves of Federal Reserve Banks, also imports
and exports of merchandise and wholesale price index
672
Central gold reserves of principal countries
677
United States gold imports and exports, November, 1918, to May, 1921
680
Index number of wholesale prices in the United States—constructed by Federal Reserve Board for purposes of international comparisons
703
Physical volume of trade
708
Movement of principal assets and liabilities of Federal Reserve Banks
737
Movement of principal assets and liabilities of member banks
744
Debits to individual accounts
751
IV
FEDERAL RESERVE BULLETIN
JUNE, 1921.
VOL. 7
REVIEW OP THE MONTH.
New factors in the process of economic readjustment have made their
New factors in a rp p! e a r a n c e during
the lpast
&
readjustment.
-
.
„
month. Some have a favorable bearing upon the business situation, while in
the case of others results are doubtful and must
be awaited before positive conclusions are
reached. Especially likely to contribute to the
furtherance of progress toward normal business
conditions are the current wage readjustments,
both actual and prospective. Notable among
such adjustments may be mentioned the 20 per
cent reduction which has occurred in the wages
of employees of the United States Steel Corporation (following close upon an earlier revision
of the prices charged by that concern), and
the semiofficial announcement that the Railway Labor Board is prepared to put into effect
a revised scale of transportation wages. There
has been evident in a variety of industries a
marked tendency toward friendly rearrangement of wage relationships, sometimes preceding
and sometimes following price revisions. Prices
themselves have tended to settle to a somewhat lower basis and the various index numbers have tended to move rather more closely
in harmony, thus indicating that the readjustment period is nearer completion. Unfavorable factors tending to retard the restoration of
settled conditions have been seen in the decline
of export trade and the apparent loss of ground
in some competitive markets, or in markets
which have been unfavorably affected by our
failure to furnish adequate financial facilities.
The inability to bring about faster movement
of agricultural products from farm to market,
and especially to foreign markets, has also continued to work against improvement of conditions in the farming States, where, however,
prospects for the current crop season are gen-
No. 6
erally favorable. Banking advances inevitably
continue in those regions to be "frozen."
Taking the banking situation as a whole, however, there has been a decided progress toward
more liquid conditions, illustrated by the growth
of the ratio of Federal Reserve Banks themselves to a figure of 57.6 per cent on the final
report date of the month (May 25).
I t is a notable fact that while foreign prospects are unsatisfactory, domestic factors in
the present situation have shown at all events
a capacity for improvement. This situation is
apparently misunderstood by some who are
disposed to believe that economic conditions at
home can be restored to a satisfactory basis
even though the foreign situation continues unsettled. The fact in the case is that our foreign trade is now also a domestic trade factor
of primary importance. Due to the great expansion of our manufacturing power during the
war it is essential to control a reasonable
amount of foreign trade if we expect to keep
our present agricultural lands, or our manufacturing investment, employed. This is equivalent to saying that we can not reasonably expect a complete recovery in domestic trade
without having a somewhat corresponding
advance in foreign business. While it is true
that our home trade is both larger in volume
and in value than the foreign business in most
commodities, it is true that a small shortage or
surplus of a given kind of goods produces an
important and far more than proportional
effect on prices. Foreign trade is thus needed
as a stabilizer of values, beside being essential
as a means of insuring full demand for goods
and complete activity of productive energies.
With the importance of our foreign trade
A turning point thus recognized, and with its
in foreign trade, direct bearing upon the domestic economic outlook thus fully admitted,
645
646
FEDERAL RESERVE BULLETIN.
current figures showing the actual movement
of goods to other countries assume new significance. April returns show continuation of the
movement toward a more even balance between exports and imports. Exports were
reported as $340,000,000 for the month and
imports as $255,000,000. The excess of exports over imports, that was developing during
last December and January at the rate of some
$450,000,000 monthly, has been cut down each
month since then, until for April our balance
on merchandise account was only $85,000,000.
Imports of gold, on the other hand, amounted
to about $82,000,000 in April. This change in
the balance of trade has been brought about,
not so much through increase in the value of
imports, but rather by decline in the value of
exports. In fact, the value of imports, although
showing some increase over the very low figures
of January of this year, is still in value only
half the figure for April, 1920. Price declines
have naturally been responsible to a considerable extent for the reduction in values during
recent months. For this reason the foreign
trade index of the Federal Reserve Board is particularly significant in interpreting the volume
of trade "as compared with previous months.
This shows that while the volume of exports
has been shrinking steadily since the latter part
of- 1920, the physical volume of imports has
been increasing much more rapidly than the
value figures indicate, owing to reductions in
prices. To the extent that this index is representative of our foreign trade as a whole, the
conclusion is justified that exports in April
had declined to about the same volume as in
April, 1913, while imports were reaching this
country in nearly double the quantity of the
corresponding prewar month. So far as individual commodities are concerned, the increased volume of imports is well distributed
among the several classes of goods. Among
exports, corn and wheat continue to move in
quantities several times the volume of a year
ago, while cotton shows a decided falling off.
A striking feature of the foreign-trade situation has been the inward gold movement. The
net importations of gold for the first four
months of the current year now amount to
$241,000,000, while for the fiscal year (10
JUNE, 1921.
months) they are $407,000,000. Resumption
of heavy gold shipments to the United States
has an important correlation with the coincident decline in our foreign trade in goods. It
was a notable factor in the business depression
of last autumn that our banks practically
ceased financing the foreign trade in a variety
of directions, with the result that these branches
of business or the geographical divisions of the
trade thus dealt with were deprived of credit
facilities, and so were practically obliged to fall
back upon cash payments, except in so far as
the only partly developed import trade was
able to afford means of paying for export shipments from this country. In the acute stages
of a commercial crisis or depression foreign
trade is likely to decline to a point where it is
definitely upon a cash basis, and this is probably the situation which has been developing
in our own foreign commerce. It is a state of
things which obviously can not long continue.
The import movement of gold, as just
Financing ex- noted, is to be attributed in
ports,
large measure to the lack of
ordinary methods of settling for our exports
through extensions of credit if impossible to do so
through the inward shipment of foreign merchandise. It has no permanent significance as a
financial factor. There has been little or no reduction in the urgent nature of the problem of
financing our foreign trade and particularly the
export movement. Efforts to further the organization of special financing corporations created
for the purpose of granting long-term accommodation have met with limited success,
the reason for delay being found largely in the
indisposition of banking institutions to subscribe for stock in them. That there is a large
and important field of credit effort to be filled
by such institutions is beyond question. The
problem in the case appears to be partly that
of accurately ascertaining the credit of the
foreign borrower so as to be sure of the soundness of the loan, and partly that of assuring a
sufficiently broad interest among American
investors. Meantime the experience of the
various foreign banking corporations, both
those organized under the Edge Act and those
previously established under older State laws,
is proving of considerable interest in connec-
FEDERAL, RESERVE BULLETIN.
JUNE, 1921.
tion with the general problem of method in
foreign financing. It has been noted with
interest that thus far the greater number of the
foreign trade organizations have become practically acceptance enterprises, far the larger
proportion of the accommodation extended by
them assuming that form. One reason for this
trend of development has doubtless been the
greater ease experienced in getting funds from
the acceptance than from the investment
market, while another has doubtless been
found in the comparative simplicity of obtaining cooperation and assistance along creditlines from foreign financial institutions. Accurate reports regarding the credit underlying
ordinary business on long term are by no
means easy to get, or, in the present condition
of European business, very reliable, in all
cases. Difficulty in getting the cooperation or
joint guaranty of foreign institutions and a
belief that if full responsibility must be carried
for all credits advanced, it should be accompanied by rapid turnover with corresponding
profit, is assigned by some as the reason for the
development of foreign financing corporations
along short-term lines.
What has actually been done toward developing a system of foreign-trade financing corporations may be seen from the following compilation, which affords data regarding the chief
institutions of the sort that are now in existence, taken from their most recent statements:
Name of bank.
Capital,
surplus,
and
undivided
profits.
Assets.
American Foreign Banking Corporation
$6,504,635 $64,325,033
Asia Banking Corporation
0,109,675 41,496,414
French-American Banking Corporation
2,803,807 22,978,190
International Banking Corporation
14,015,146 131,327,344
Mercantile Bank of Americas
10,802,063 95,967,550
Park Union Foreign Banking Corporation
4,621,004 22,455,456
Shawmut Corporation
2,265,845 13,873,541
Discount Corporation of New York
6,697,132 73,804,724
9,239,897
First Federal Foreign Banking Association... 2,311,166
Federal International Corporation
7,000,000
International Acceptance Bank
I 15,250,000
The Foreign Financing Corporation, projected
with a capital of $100,000,000, is still in process
of organization.
The facts thus furnished show clearly the
comparatively limited character of the financial facilities which have been provided for the
647
financing of our foreign trade upon a special
basis distinct and apart from that which is
found in the foreign departments of our banks.
Conditions relative to financing should, moreover, be studied in the light thrown on the subject by the character and seriousness of the
foreign trade problem in the large. As things
stand, complete or full recovery in our domestic
trade will not be insured without at least reasonable restoration of our foreign commerce. The
latter object is, however, in no small measure
dependent upon the development of an adequate financial basis for the business.
Effort is being made by the War Finance
The War Fi- Corporation to facilitate the
nance Corpora- movement of goods to foreign
tion
points and, with that object in
mind, the corporation has issued Circular No. 1
(obtainable from Federal Reserve Banks),
containing information for the use of prospective applicants for advances. The circular in
question sets forth clearly the terms upon
which such advances will be favorably considered. It is made plain that the export credits
provided and authorized under the act will be
made only (1) to American citizens (2) who
evidence their indebtedness by a direct and
unconditional obligation signed by a person,
partnership, or corporate enterprise subject to
American law, and (3) who show (in the case
of individuals) that they have not been able to
get support through ordinary banking channels
or (in the case of banks) that the loans are to
be made for exportation and are not over the
amount advanced to and unpaid by an exporter. In these circumstances the responsibility for the credit rests with the exporter
who receives the advances, he being then under the necessity of ascertaining the character
of the credit standing of the foreign buyer,
and of collecting from him at maturity. Local bankers have been unwilling to retain the
liability for advances in support of export trade
incurred through indorsement. Not a few
adhere to the view that such retained or
continued liability places the bank in a dangerous position, especially when steadily increased through repeated rediscounting or
borrowing. The rate of interest to the individual exporter which, as announced in the
648
FEDERAL RESERVE BULLETIN.
circular, is by law required to be at least 1 per
cent higher than the 90-day rate of the Federal
Reserve Bank of the district in which the
advance is made, is now, by the action of Federal Reserve Banks in cutting their rates to
6-6J per cent, fixed at a level of 7-7^ per cent.
During the past month conferences held with
cotton interests have resulted in facilitating
shipments financed by the corporation to various foreign markets.
In reviewing the export finance situation
Acceptances special attention should be
and ^ letters of given to two new rulings made
credit.
public by the Federal Reserve
Board during the past month. Of these
probably the more important is designed to
lengthen the period of maturity of eligible
bankers7 acceptances to six months. From the
inauguration of the Federal Reserve Banks the
acceptance has been treated as a commercial
bill and hence subject to the statutory limitation of 90 days applicable to such paper.
This, as is well known, did not necessarily bar
paper of longer maturity from becoming eligible
for purchase or discount, but merely prevented
Reserve Banks from buying or discounting it
until it was within 90 days of its maturity date.
The new regulation doubles this maturity
period and so opens to technical eligibility for
open market purchase of paper which would
otherwise have been admissible into Federal
Reserve Bank portfolios only after the
lapse of 90 days. Commercial conditions since
the close of the war have unavoidably tended
to increase the necessary period of ordinary
credit, so that an acceptance of six months'
maturity may not be longer when its general
relation to the average duration of commercial
transactions is concerned than was a like document of 90 days' maturity prior to the war.
The real test of the new provision will be
afforded when it is seen how far, if at all, the
average life of the acceptances currently held
in Reserve Bank portfolios has been increased
by reason of the action. In the opinion of
some Reserve Bank officers such increase will
certainly be very limited. Experience over a
series of months can alone demonstrate the
effects of the ruling upon the maturity of Reserve Bank portfolios,
JUNE, 1921.
In outlining the considerations which have
given rise to this ruling, and in cautioning the
banks with regard to operations under it, the
Board said:
"Two considerations have led the Board to
take this action: (1) The desire to widen the
acceptance market bv meeting the wants of
savings banks and similar purchasers of bankers'
acceptances who are now deterred from investing in acceptances of longer than three
months' maturity, because of the lack of authority of Federal Reserve Banks to purchase
longer maturities up to six months; (2) to provide more ample facilities for financing import
and export trade with countries where either
normal conditions or present abnormal conditions indicate the desirability of rendering
assistance by making acceptances of maturities not exceeding six months eligible for
purchase by Federal Reserve Banks. While
the Federal Reserve Banks would, under ordinary conditions, prefer to confine their investments to paper of short maturity, that is, not
exceeding three months, it is believed that the
present emergency in the foreign trade situation would be relieved by a more liberal practice. Vigilant care, however, should be exercised by Federal Reserve Banks in purchasing
acceptances of long maturities, in order that
the liquidity of the aggregate investment in
acceptances held by them should not be affected.
In amending its regulation in the manner described, the Board looks to the good banking
judgment and discretion of the accepting banks
and of the Federal Reserve Banks to avoid any
untoward results. To avoid misunderstanding
the Board desires to add that the results of this
widening of the investment powers of the Federal Reserve Banks will be followed closely,
with a view to such modification of its rules or
amendment of its regulations as future developments may indicate to be necessary."
The problem of facilitating foreign trade on
the long-term basis is essentially one for the
investment market, but the Board's action, as
just seen, in lengthening the acceptance period
to six months, is due to a desire to do what
can be done in an emergency calling for
prompt relief.
The second ruling of the Board relates to the
practice heretofore widely employed by member banks in obtaining the services of another
institution as an opener of letters of credit in
their behalf. The Board now, acting in accord
with the Comptroller of the Currency, finds
that this practice has no legal warrant and?
JUNE, 1921.
FEDERAL, RESERVE BULLETIN.
while recognizing that it is not, on the other
hand, positively illegal, nevertheless cautions
national banks not to resort to it further. As
a substitute for the older relationship there is
suggested an agency contract under which the
bank issuing in its own name a letter of credit
would be definitely recognized as acting for
another which had requested such service. In
any case, however, the acceptances issued or
created by such an agent bank must be reported and shown on its statement as constituting part of its authorized or legal line of
liabilities, while the principal bank must do
likewise.
It must be frankly admitted that the problems of our foreign trade are
New hazards
exclusively financial but
no^
that they involve others of a
broader nature. Were it true that the European economic situation had been reduced to
a basis of ordinary credit analysis, very much
more progress could undoubtedly have been
made within the past two years in securing a
restoration of industrial activity, while European obligations, both private and public,
would have found a broader market here than
has been the case. It has been the feeling of
not a few American business and financial interests that while they might fairly be expected
to carry all ordinary risk growing out of investments that they might be asked to make in
European industry or out of the purely financial
problems and difficulties of European Governments (in those cases where offerings of securities consisted of public bonds), it was too much
to ask that private citizens or banking establishments should incur hazards due to political
uncertainty or instability. It is in this connection, no doubt, more than in any other that
the German reparations discussion has been of
importance. So long as the reparations controversy rested upon a political rather than an
economic basis and involved the direct use of
military authority as well as the control of
import and export trade by foreign nations,
the factors involved in any form of German
financing presented unusual difficulty and uncertainty. The same has been true, even in
much higher degree, of many of the obligations
which have been offered from time to time to
649
American business men by interests and even
by Governments which were likely to be
endangered by political changes. Exporters
have reported that they could do a large
trade in various of the European countries
if they were willing to accept high interestbearing Government bonds which were offered
to them at a very substantial discount, but
that they were unable to consider the business
thus suggested to them because of the difficulty of disposing of the securities under
existing conditions. The political risks involved in financing industrial transactions in
some of the foreign countries have undoubtedly tended very greatly to hinder export
financing in this country and have given rise
in various quarters to the suggestion that if
the Government were willing to guarantee
financiers or exporters against hazards growing
out of political change, it would be much less
difficult to secure the funds necessary to
furnish the required basis for business when
only commercial and industrial hazard had to
be considered. The settlement of the German
reparations discussion, to which reference will
presently be made, should constitute a long
step in the direction of eliminating this kind of
obstacle from the path of legitimate export
trade, and must therefore be regarded as of
first rate importance to business in the United
States.
The same problems which confront American
exporters in connection with political trade
risks have likewise been recognized by British
trade authorities, as may be seen from the
plan put into effect at the end of last year
whereby in the case of exports to certain
countries such as Finland, Latvia, Esthonia,
etc., the Government advances up to 100 per
cent of the value of the goods and guarantees
80 per cent. Early in March last the president
of the Board of Trade proposed a somewhat
different scheme, namely, to guarantee up to
85 per cent of the selling price of the goods,
and to require from the importer securities
to the value of only 50 per cent instead of the
previous 100 per cent. This new proposal
has apparently not been put into effect and the
transactions under the older scheme are of a
very minor character. Between January I
650
FEDERAL RESERVE BULLETIN.
and March 31, 1921, advances had been made
by the Board of Trade for only £321,000.
Outside the field of domestic financial problems and the technique of their
The reparations
settlement.
goluti
there
have
been
ob_
; .
served during the past month
some occurrences of large importance in their
bearing upon international trade and the general prospects of its development. Chief
among these is undoubtedly the German
reparations plan, as made known on May 5
in official form, and as interpreted by Mr.
Lloyd-George in his address in the House of
Commons on the same date. The final agreement upon terms in the reparations controversy must without doubt be regarded as
the triumph of economic over political considerations. It thus marks the return of a
greater degree of sanity in European affairs
and opens a more promising outlook accordingly for future economic readjustment there.
This in itself would mean the attainment of a
basis of understanding of first class economic
significance as a general factor in reconstruction. It has, however, a special bearing upon
the position of the United States. This is
found in the fact that the adjustment unquestionably eliminates the most serious element
of uncertainty that has affected international
trade since the war. So long as there was
hesitation regarding the final adjustment,
trade between Germany and all other nations,
including the United States, was necessarily
more or less interrupted. Not only was this
true, but the considerable investment of
American capital in German enterprises which
had begun about a year ago could not safely
be continued and was necessarily suspended.
Sale of German Government obligations in this
country, whether with or without Allied
indorsement, was equally unlikely to be successful—indeed, ever since the appearance of
serious friction regarding the settlement there
has been a practical cessation of European
offerings of most kinds. This situation fortunately has already become much less
acute and conditions are approaching a rather
more normal position. That our market will
be called upon to carry a substantial share of
the necessary financing growing out of the
German adjustment will naturally be unavoid-
JUNE, 1921.
able. The Cabinet, after considering at its
meeting of May 20 the question of foreign loans,
announced however that the proceeds of such
as are made should be used for the purchase of
goods for export, or in other words, that such
advances as we make ought to be taken in
goods.
In its actual terms the German settlement,
though nominally simple, offers
Terms of the
numerous
complexities. The
settlement.
official text of the protocol made
public by the French Government fixes the total
payable under articles 231, 232, and 233 of the
Treaty of Versailles at " 132,000,000,000 gold
marks, less (a) the amount already paid on
account of reparation; (6) sums which may
from time to time be credited to Germany in
respect of state properties in ceded territory,
etc., and (c) any sums received from other
enemy or ex-enemy powers in respect of which
the commission may decide that credit should
be given to Germany, plus the amount of the
Belgian debt to the Allies, the amounts of
these deductions and additions to be determined later by the commission." This total
sum is to be represented by (a) bonds amounting to 12,000,000,000 marks delivered by July 1,
1921, bearing interest at 5 per cent, and with
an annual sinking fund of 1 per cent; (6) bonds
amounting to 38,000,000,000 marks deliverable
November 1, 1921, and bearing interest and
sinking fund as in the case of the first series;
(c) bonds amounting to 82,000,000,000 marks,
with interest and sinking fund provided for as
before. As deduction from the amount of the
(c) bonds, however, there will be reckoned the
allowances already specified above. These
three classes of bonds become successive liens
on incomes which are described as follows:
" (a) The proceeds of all German maritime and
land customs and duties, and in particular the
proceeds of all import and export duties;
(6) the proceeds of a levy of 25 per cent on the
value of all exports from Germany, except
those exports upon which a levy of not less
than 25 per cent is applied under, legislation
referred to in article 9; (c) the proceeds of such
direct or indirect taxes or any other funds as
may be proposed by the German Government
and accepted by the committee on guarantees in
JUNE;, 1921.
FEDERAL, RESERVE BULLETIN.
addition to, or in substitution for, the funds
specified in (a) or (6) above."
Out of the revenues thus set apart (or under
certain conditions from others) Germany is required to pay " (1) the sum of 2,000,000,000
gold marks; (2) (a) a sum equivalent to 25 per
cent of the value of her exports in each period
of 12 months, starting from May 1, 1921, as
determined by the commission, or (&), alternatively, an equivalent amount as fixed in
accordance with any other index proposed by
Germany and accepted by the commission;
(3) a further sum equivalent to 1 per cent of the
value of her exports, as above defined, or,
alternatively, an equivalent amount fixed as
provided in paragraph (6) above/ 7 A feature
of doubt with reference to the operation of
these provisions is afforded by the ambiguous
provision which follows immediately the language already quoted with respect to the sums
to be used in making the reparations payments:
"Provided always that when Germany shall
have discharged • her obligations under this
schedule, other than her liability in respect of
outstanding bonds, the amount to be paid in
each year under this paragraph shall be
reduced to the amount required in that year
to meet the interest and sinking fund on the
bonds then outstanding.7' Interpreting this
provision, however, Mr. Lloyd-George in his
address in the House of Commons on May 5,
used the following language:
"* * * It is clear that at first there will
be not enough to pay interest, and you can
hardly expect to receive enough money to pay
interest upon the whole of the amount due,
which is £6,600,000,000, and 6 per cent upon
that would be £400,000,000 sterling. Then
comes the question what is to be done with the
interest in respect of the unissued bonds.
Under the treaty, Germany was debited with
interest at 5 per cent upon the whole of the
debt due from her, with certain powers left
to the reparations commission to vary the
amount. What is proposed to be done now
is that 25 per cent on the exports is to be
devoted, with the fixed annual sum, to the
payment of the bonds which will be issued.
If there is a balance over and above that for
any given year, it is to be devoted to the payment of interest upon the unissued bonds,
which represents the uncovered capital of the
debt, together with a sum equal to 1 per cent
of her exports. Beyond that the interest will
be wiped out. It will not accumulate against
651
her, and that is a very important concession,
and I hope it will have important effects.77
Not the least interesting clause in the reparations protocol is found in paragraph 5 of that
document, which requires that " Germany shall
pay within 25 days from this notification
1,000,000,000 gold marks in gold or approved
foreign currencies or approved foreign bills oi
in drafts at three months on the German Treasury, indorsed by approved German banks and
payable in pounds sterling in London, in francs
in Paris, in dollars in New York, or any currency in any other place designated by the
commission. These payments will be treated
as the two first quarterly installments of payments provided for in article 4, paragraph I.77
The provision of article 4, paragraph 1, referred
to, is the language already quoted above as
regards a lump-sum payment of 2,000,000,000
marks and an additional amount equal to 25
per cent of her exports.
Within the past month a readjustment of
rates on 90-day paper has
Discount and
keen m a c le ^J several Jb ederal
interest rates.
Reserve Banks, with the result
that the entire system is now practically upon
a 6-6J per cent interest footing. This downward movement reflects and parallels the
stronger and more liquid condition of the Reserve Banks themselves. As compared with
a year earlier, gold holdings at the close of
May show an increase of some $448,000,000,
while bills held reflect a decline of $972,000,000.
A falling off of notes in circulation by about
$376,000,000 still further emphasizes the extent
of the liquidation that has occurred. Improvement in condition has been by no means even
or uniform throughout the system, banks
located in the agricultural regions finding it
necessary to finance the "carry-over77 of
products from last season, whereas liquidation
has been carried to an advanced point in the
more highly developed manufacturing and
commercial parts of the country. Liquidation
in Reserve Banks, moreover, parallels the
change of condition in member banks of the
Federal Reserve System.
It is still too early to state the results to be
expected from changes in Reserve Bank rates
upon commercial and market interest charges.
While an easing of the direct rate to bank
652
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
Data received since the publication of these
customers is reported in some quarters, call
charges have maintained themselves at a level official index numbers by private price reportfully as high as that of recent months. Time ing agencies show that a further reduction of
money, too, has been as scanty and expensive prices has occurred during recent weeks. The
as in the past, while reductions in open- latest number furnished by Bradstreet's for
market rates on commercial paper have been June 1, for example, shows a falling off during
very limited at best.
May of 1.9 per cent. It is now estimated that
Inasmuch as the Bank of England had re- an actual decline in cost of living from the
duced its 7 per cent rate on 90-day paper to 6 J peak point, amounting to approximately 20
per cent prior to the date when general reduc- per cent, has taken place. This figure must,
tions were undertaken by the Federal Reserve of course, be received with caution because of
Banks, while a cut in the British treasury bill the lack of uniformity in the data upon which
rate to 5f per cent had also taken place, it will it is based. The continued fall of price
be seen that Government and bank obliga- indexes has been a source of surprise to some
tions both in Great Britain and in the United observers who had been of the opinion that
States are upon a basis of substantial simi- the limits of the movement had been reached
larity. Reductions of rates to 6\ per cent have some time ago. The change, however, is prialso been made by some of the Scandinavian marily due to a readjustment of price relationbanks as well as by Swiss, Belgian, and some ships among themselves, some commodities
other central banks. I t may therefore be said which had failed to share in the general downthat there has been a general downward move- ward movement yielding atlast to the influences
ment of central bank charges.
which had tended to lower the prices of other
The level of prices has continued to be of commodities. This general settling of the
primary importance as a busi- price level does not, it may be supposed, point
Prices and ness factor—far more so than to any further sharp general reduction but may
wages.
has been true of the discount perhaps be considered as the final step of price
and interest situation. Recent index numbers readjustment. Undoubtedly it is so regarded
show that the decline of prices throughout the by many business men, as is shown by some
world instead of ceasing has continued although, slight increase in their disposition to make new
as remarked on former occasions, at a some- commitments based upon quotations and values
what slower'rate. The following brief table of existing at the present time in the various
index numbers for the principal countries, branches of industry. Hesitation, due to the
using for the United States the price index of fact that some are still uncertain whether
the Federal Reserve Board, compiled for in- their principal commodities will or will not
ternational comparisons, shows how the change recede still further, has tended to prevent any
in prices, to which reference has just been considerable accumulation of advance orders,
made, is progressing.
so that various industries which report themselves in decidedly improved condition so far
Wholesale prices in leading countries.
as the volume of production is concerned
[Average prices in 1913=100.]
nevertheless report that their advance "bookings" are still upon an abnormally narrow
Peak AT
Per
in
IS21, cent of basis, numerous buyers working from hand to
1920. index. decline.
mouth because of the belief that they may be
able to take advantage of later changes in
United States
264
143
United Kingdom, Statist
313
199
prices. This hesitation is said to be more
France
588
347
Italy
670
584
widely
observable among the larger retail
Germany i
1,714
1 429
Sweden
366
229
distributors
than those among the smaller
Japan
321
190
Canada 1
263
187
operators.
Australia
236
171
2 183
India*
218
The readjustments in wages which have
* Base period, middle of 19J4.
* March, 1921.
gone on during the month have been facilitated
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
by the fact that the cost of living had unmistakably fallen, and that a given wage return to labor necessarily implied a considerably greater purchasing power than in the
past. Both the settling down of the price
level upon a more nearly final basis and the
establishment of closer correspondence between
living cost on the new scale and wages have
strongly helped to lay the foundation for
improvement in business which can now be
seen in various directions.
Without waiting for improvement in the
export and general foreign
trade situation, domestic business has begun to show a turn
for the better in several lines. Reference has
already been made in summary form at the
opening of this review to sundry of the main
factors which have proven of notable interest
from the standpoint of domestic business recovery during the past month. The indexes
of production, movement, and use of goods
compiled by the Board are not as fully representative of existing conditions to the present
date as are the more general indications
already referred to, but they afford the results
of statistical inquiry into the situation up to a
date about 30 days ago.
March, 1921.
Receipts of live stock at
15 western markets
(in thousands of head)
Receipts of grain at 17
interior centers (in
thousands of bushels)
Sight receipts of cotton
(in thousands of bales)
Shipments of lumber
reported by 3 associations (in millions
offeet)
Bituminous coal production (in thousands of short tons)..
Anthracite coal production (in thousands of
short tons)
Crude petroleum production (in thousands of barrels)
Pig iron production (in
thousands of long
tons)
Steel ingot production (in thousands of
long tons)
Cotton consumption
(in thousands of bales)
Wool consumption (in
thousands of pounds)
April, 1921.
April, 1920.
Total.
Relative.
4,700
114.5
4,367
106.4
4,106
100
78,899
176.6
51,900
116.1
44,686
100
554
100.2
565
102.2
553
100
713
92.9
767
100
664
Total. Relative.
30,392
80.1
27,553
72.6
37,939
100
7,406
119.2
7,703
124.0
6,214
100
40,965
115.1
40,039
113.5
35,583
100
1,596
58.2
1,193
43.5
2,740
100
1,571
59.6
1,214
46.0
2,638
100
438
77.3
409
72.1
567
100
47,181
70.4
53,071
79.2
06,935
100
653
Although, as noted a month ago, the fiscal
condition of the Government
T r e a s u r y r s cease( j x i . e a s
J.
J
finance
* ^° ®
g r e a ^ and
immediate a factor in private
business relationships as was true during the
years immediately after the armistice, Treasury operations continue to furnish a factor
of large significance in current affairs. During the past month the department has placed
upon the market an issue of certificates of
indebtedness amounting to $200,000,000, for
which, however, a total of subscriptions aggregating $532,000,000 was received, while
allotments amounting to $256,000,000 were
made. Ten of the Federal Reserve districts
oversubscribed their quotas, those which did
not do so being the southwestern districts
where very strong local demand for funds has
continued to be felt. In the ordinary financial
operations of the department there has been
an outlay for the month of May aggregating
$368,450,545 and an income of $223,706,399,
the transactions thus showing a deficit on
ordinary account of $144,744,146. Withdrawals from the banks in the New York district for the purpose of meeting the various
recurrent obligations of the Government—
interest on Liberty bonds due May 15 and
others maturing during the month—have
tended to cause temporary unsettlement of
financial conditions, with possibly less liberality
on the part of commercial banking institutions
in making advances. This influence, however,
while of the same general description as has
been witnessed at the same season in former
years, has this year been of materially less
direct influence upon ordinary banking and
money prospects. During the month the Secretary of the Treasury has recommended to
Congress careful consideration of a program of
revenue revision which would provide for the
repeal of the excess-profits tax and for the
broad reconstruction of the income tax in certain important particulars, with the possible
addition of a tax similar in nature to the tax
upon undistributed profits of corporations,
suggested by former Secretary Houston. Extension of the consumption taxes and revision
in other directions have likewise been called
654
FEDERAL BESERVE BULLETIN.
to the attention of the legislative body. The
President, in an address at New York City on
May 23, has foreshadowed an important change
in the treatment of the Government's holdings
of Allied obligations, indicating that within a
reasonable time it may be expected that provision may be made for placing these obligations
in the hands of the people.
During the month ending May 10 the net
inward movement of gold was
Gold and silver $ 8 8 ? 6 4 6 j 0 0 0 , as compared with
imports and exa net inward movement of
ports.
$77,611,000 for the month ending April 10. Net imports of gold since
August 1, 1914, were $1,141,393,000, as may
be seen from the following exhibit:
Aug.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
1 to Dec.
1 to Dec.
1 to Dec.
1 to Dec.
1 to Dec.
1 to Dec.
1 to Dec.
1 to May
31, 1914
31, 1915
31, 1916
31, 1917
31, 1918
31, 1919
31, 1920
10,1921
Total
Exports.
Excess of
imports.
23,253
451,955
685,745
553,713
61,950
76,534
417,181
271,611
104,972
31,426
155,793
372,171
40,848
368,185
322,091
5,063
181,719
420,529
529,952
181,542
21,102
1291,651
95,090
266,548
2,541,942
1,400,549
1,141,393
i Excess of exports.
Sweden furnished $26,488,000, England
$22,030,000, France $10,248,000, the Netherlands $7,093,000, and the French East Indies
$6,006,000 of the $89,189,000 of gold imported
during the monthly period ending May 10,
other countries of Europe and the Orient furnishing most of the remainder. Of the gold
exports, amounting to $543,000, about twofifths, or $223,000, was consigned to Canada
and the remainder to Hongkong, Mexico, and
Cuba.
Since the removal of the gold embargo on
June 7, 1919, total gold imports and exports
have amounted to approximately $721,324,000
and $680,950,000, respectively, the net gain
being approximately $40,374,000. Of the total
exports, $195,414,000 was consigned to Japan,
$146,555,000 to Argentina, $72,199,000 to
Hongkong, $67,396,000 to China, $41,052,000
to British India, $29,778,000 to Spain, and
the remainder principally to Mexico, Uruguay,
the Dutch East Indies, Canada, the Straits
Settlements, and Venezuela.
During the same monthly period the net
inward movement of silver was $2,644,000, as
compared with a net inward movement of
$860,000 for the month ending April 10. Net
exports of silver since August 1, 1914, were
$452,956,000, as may be seen from the following exhibit:
[In thousands of dollars.]
of
Imports. Exports. Excess
exports.
Aug.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
1 to Dec. 31,1914.
1 to Dec. 31,1915..
1 to Dec. 31,1916..
1 to Dec. 31,1917..
1 to Dec. 31,1918..
1 to Dec. 31,1919..
1 to Dec. 31,1920..
1 to May 10,1921..
Total.
[In thousands of dollars.]
Imports.
JUNE, 1921.
1
12,129
34,484
32,263
53,340
71,376
89,410
88,060
19,747
22,182
53,599
70,595
84,131
252,846
239,021
113,616
17,775
10,053
19,115
38,332
30,791
181,470
149,611
25,556
1
1,972
400,809
853,765
452,956
Excess of imports.
Mexico furnished over 53 per cent, or
$2,840,000, of the $5,333,000 of silver imported during the monthly period ending May
10, the remainder coming principally from
England, Peru, Honduras, and Canada. Silver
exports, amounting to $2,689,000, were consigned principally to England, Hongkong,
Mexico, and Canada.
Continued loan liquidation, though at a
slackened rate, is shown by
reporting
member banks for
situation.
the period between April 22
and May 18, the total amounting to about
$180,000,000, compared with $318,000,000 for
the preceding four weeks. A larger amount
of liquidation is shown for commercial paper
proper; bills secured by Government obligations show a moderate reduction, while paper
secured by corporate stocks and bonds shows
an increase of about $46,000,000, apparently
as the result of member bank financing of
recent large stock and bond flotations. While
the reporting banks reduced their loans and
discounts by $180,000,000, they were able to
curtail their own borrowings from the Federal
Keserve Banks by $269,000,000. Rate reductions adopted by six Federal Reserve Banks in
April and during the early part of May apparently have had but little effect in checking the
liquidation movement. It is noteworthy that
the decrease in the accommodation obtained
JUNE, 1921.
FEDERAL, RESERVE BULLETIN.
655
from Federal Reserve Banks by the 821 reporting
Some of the principal changes in the status
banks in leading cities is practically equiva- of the Federal Reserve Banks are brought out
lent to the reduction shown for the same in the following exhibit:
Federal Reserve Banks.
period in total discounts held by the Federal
[In millions of dollars.]
Reserve Banks. A significant inference is that
credit liquidation has been confined mainly to
Bills discounted.
the large cities; while country banks have not
Federal
Secured
Reserve
materially reduced loans to their customers
by
Total
notes
in Reserve
United
Date.
ratio.
deposits. actual
and, consequently, have not been able to reStates
All
circulaGovern- other.
tion.
duce the amount of accommodation obtained
ment
obligafrom the Federal Reserve Banks. Recent
tions.
liquidation has been largely of commercial and
22
2,857
54.1
943
1,171
1,749
industrial paper, and not of agricultural paper. Apr.
Apr. 27
55.0
1,143
1,726
2,830
May
4.
892
55.3
1,174
1,729
2,829
In the following table are shown figures of May 11
918 ! 1,118
55.9
1,733
2,805
May
18.
775
I
56.8
1,068
1,717
2,767
principal items in the weekly statement of May 25
794
57.6
1,076
1,706
2,735
reporting member banks:
Mr. John R. Mitchell, who was nominated
Reporting member banks.
by the President as member of
[In millions of dollars.]
161
meetings! *** t h e Federal Reserve Board,
Redisand confirmed by the Senate
counts Ratio of
Loans
Number and
and
bills
dison
April
29,
assumed
office on May 12.
Net deof
counts payable accommand
modareportand
with
Mr.
F.
A.
Delano,
former member of the
deposits.
tion
Date.
invest- Federal
Federal Reserve Board, has been appointed a
ments.1 Reserve (3+2).
Banks.
Class C director of the Federal Reserve Bank
of Richmond for the term expiring December
31,
1921.
10,127
10.1
821
Apr. 22.
15,629
1,583
10,138
9.8
821
1,523
15,603
Apr. 27.
The
usual quarterly session of the Federal
10,214
9.8
821
1,533
15,582
May 4...
10,252 Advisory Council took place at Washington
9.7
1,506
821
15,489
May 11.
10,156
1,314
8.5
821
15,447
May 18..
on May 16.
1
Including rediscounts with Federal Reserve Banks.
Developments in the Federal Reserve banking field are chiefly a further gain of $95,000,000
of gold, offset in part by a loss of $30,000,000
in other cash reserves, and a continued reduction in Federal Reserve note circulation, which
on May 25 stood at $2,735,000,000, compared
with $2,857,000,000 five weeks earlier. The
volume of Federal Reserve notes in circulation
on the latest report date is the lowest recorded
since October 3, 1919, the reduction from the
peak reached on December 23, 1920, amounting to $670,000,000, or 20 per cent, and from
the amount on May 28, 1920, to $372,000,000,
or 12 per cent. The increase in cash reserves
and the reduction in note circulation, together
with a decline of $43,000,000 in deposits, has
resulted in a further advance of the reserve
ratio from 54.1 per cent on April 22 to 57.6 per
cent on May 25, the larger share of this
advance being due to the gain in gold.
Index-Digest of the Federal Reserve Bulletin.
The index-digest of the FEDERAL RESERVE
BULLETIN for the years 1914 to 1920, inclusive,
will be ready for final printing within a very
short time. As the edition is to be a limited
one and the Federal Reserve Board desires to
be in position to supply all banks and others
desiring it with copies, it is requested that all
institutions wishing to obtain copies send in
their orders at once, so that the Board may
accurately gauge the number of copies to have
printed.
The index-digest of the FEDERAL RESERVE
BULLETIN was compiled by Mr. C. S. Hamlin,
primarily for the use of the Federal Reserve
Board and of the Federal Reserve Banks, and
contains an abstract of all published decisions
and rulings of the Federal Reserve Board and
of the other matter contained in the BULL XIN.
The price will be $2 per volume, bound in
cloth in the same manner as the BULLETIN.
Subscriptions should be sent to the Federal
Reserve Board, Washington, or to the respective Federal Reserve Banks,
656
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
BUSINESS, INDUSTRY, AND FINANCE, MAY, 1921.
Slow and greatly retarded recovery in production and distribution has been in progress
during May. What appears to be a definite turn for the better has been taken by some branches
of domestic industry, but foreign trade is still arrested or depressed. The more hopeful attitude which showed itself among business men during April has continued, and in some industries is preparing the way for active development. Gains made during the preceding month
or two have been generally retained, reaction being only sporadic.
Foreign trade continues its movement toward a more nearly equal balance of imports and
exports. There has been a further falling off in our foreign shipments and some increase in
receipts from abroad, the figures being especially noteworthy when stated as physical volumes
of goods. Failure of normal industrial conditions in foreign countries to recover and special
causes of trade impairment, such as the British coal strike, have hampered progress, while
disturbed exchange and inadequate financial facilities have made resumption of activity a
matter of special difficulty in some directions.
Readjustment in wages, which was given special consideration a month ago, has proceeded but has been slow, while adjustment between wages and prices (especially retail prices)
is exhibiting special difficulties.
Irregularity and lack of uniformity still exist in marked degree over large sections of the
retail price field, and qualified observers forecast serious obstacles to the final adjustment of
wages to permanent levels, unless retail prices move much faster to their final basis. Settling
of prices has proceeded in various wholesale lines to an extent that is reflected in less noteworthy average changes; but this process is apparently more truly an "evening u p " or adjustment to a level already reached than it is a new dip or downward movement toward generally
lower values. High costs of transportation, to which reference was made a month ago as one
of the elements retarding readjustment, continue to produce a restrictive influence and are the
subject of active investigation and discussion.
The uneven character of the business readjustment of the month is illustrated by conditions in the various individual industries. In some of the latter an approach to stabilization
has been made. This condition notably exists in the textile trade and in the boot and shoe
industry. Contrasted with industries of this type are several that are either at low level or
moving further downward. In iron and steel reaction is still progressing. Buying is confined
largely to immediate needs and as a consequence both u. ^lled orders and current production
show declines. In wholesale and retail trade there has b en some recession, although such
recession has been much more pronounced in the wholesale than in the retail field. The anticipated improvement in the labor market due to the opening of spring agricultural activities has
not proved sufficient to absorb the surplus resulting from the reduced employment attendant
upon present industrial conditions.
Agricultural developments of the month are of a somewhat uncertain character. Whereas
climatic and soil conditions had previously been favorable, the wet cold weather of May interfered with crop development, and as a matter of fact great damage has been done in certain
sections of the country. The fruit crop over wide areas has suffered severely.
Financially, May has been a month of increasing strength and of more prosperous outlook.
There has been, in various sections, an easing of the demand for funds which has resulted in
part from the acceptance of lower price levels and in part from the adjustment of business to
new conditions.
The business outlook for the season thus continues on the whole more favorable, but with
little prospect of immediate sharp improvement of conditions.
AGRICULTURE.
The agricultural situation during the month
may be characterized as unfavorable and
backward. Although the unusually mild winter was exceptionally favorable for the preparation of the ground for the 1921 crops and
permitted a rapid growth of all the grains, the
unseasonable spring weather has been injurious
to all crops. The weather has had an ill
effect upon the maturing of winter wheat,
while it has retarded the growth of spring
wheat. District No. 8 (St. Louis) reports
that "condition of the growing winter wheat
crop in this district is still favorable, despite
the fact that the growth has been checked
somewhat by the recent cold, wet weather."
Although the condition of winter wheat is
reported to be fair in Arizona and New Mexico,
the Texas crop has shown a considerable
deterioration, which is attributed to drought,
high winds, and the inroads of green bugs and
rust. In the central and western spring wheat
belts showers have occurred and the temperature has been generally favorable, aiding the
growth of wheat; the seeded grains are up to a
satisfactory stand. Although district No. 9
(Minneapolis) reports that "plowing and seeding of corn is progressing nicely in Minnesota
and South Dakota/' in most sections the
plant has been retarded. Thus, district No. 8
(St. Louis) states that "corn planting in the
north has been retarded by excessive moisture
and, due to the same cause, considerable replanting has been required in the south." In
district No. 11 (Dallas), likewise, "not only
has the weather been too cool for the best
growth of cotton, corn, and small grains, but
these crops have been adversely affected by
the extremely uneven rainfall throughout the
district.77 The cold weather has not only
retarded the growth but has prevented germination of the seed. In many instances replanting of the various crops has been necessary, while in other sections, where replanting
was avoided, a poor stand has been the result.
COTTON.
The development of the cotton crop throughout the southern area has been retarded by
unfavorable weather conditions. Thus, in
district No. 11 (Dallas), "the effect of the cold
wave occurring in April and May was to check
the growth of cotton where the plant had
germinated
and to retard its germination
elsewhere.77 In west Texas plowing and planting have been delayed by drought, while in
many sections the cold, wet ground has delayed
the necessary replanting. District No. 8 (St.
Louis) reports that "planting, cultivation, and
657
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
replanting of cotton has been seriously
delayed
by the overabundant precipitation.77 Information received from all districts indicates
that the acreage planted in cotton has been
considerably reduced. The results of a recent
survey in 150 counties of Texas made by the
Federal Reserve Bank of Dallas show that the
reduction in that area is about 30 per cent.
District No. 8 (St. Louis) reports that "the
Arkansas Cotton Trade Association estimates
that the acreage reduction
in that State will
amount to 35.3 per cent.77
TOBACCO.
The new tobacco crop has been transplanted
in South Carolina, and in district No. 8 (St.
Louis) " tobacco beds are reported in good
condition, awaiting favorable weather for transplanting/ 7 In this district "the acreage
to be
planted is generally reported short/ 7 and reports from district No. 5 (Richmond) indicate
reductions in both North Carolina and Virginia, but the acreage in South Carolina has
been slightly increased. The leaf tobacco
situation has been very quiet. District No. 8
(St. Louis) reports that the "tobacco markets
are practically all closed for the season,7 leaving
a large amount of the leaf in farmers hands,
most of which is of inferior quality.77 It is reported from district No. 3 (Philadelphia) that
manufacturers are not buying the new tobacco
on any large scale. Thus it is stated that
"purchasing by manufacturers has not been
increased within the past month,
and the price
trend continues to be lower.77 The cigar business appears to be in a rather satisfactory condition. Although the demand is small and for
the cheaper grade of cigars,
district No. 3
(Philadelphia) states that' c in most cases operations and sales have about reached a point of
adjustment which prevents overstocking and
at the same time furnishes a supply of cigars
sufficient to meet ordinary needs.7
FRUIT.
Although every fruit section has suffered
from cold weather and frost, the extent of the
damage varies with the different sections.
District No. 11 (Dallas) reports that "fruit
indicate a larger and more satis{>rospects
actory yield than that of 1920." On the other
hand, district No. 8 (St. Louis) states that
"prospects for fruit in all States of the
district
are probably the poorest on record/7 In district No. 12 (San Francisco) deciduous fruit
crops have all suffered from frost damage but
" a greater new acreage coming into bearing
this year and an exceptionally heavy set of
fruit have offset the effect of frost damage,
658
FEDEBAL, RESERVE BULLETIN.
and the reduction in total yield this year as
compared with 1920 will not be so marked
as
was expected from earlier reports/ 7 The
report further says that "in the Pacific Northwest present indications are for the largest
apple crop in the history of that section."
However, "the stone fruits suffered approximately 30 per cent damage."
GRAIN MOVEMENTS.
The movement of grain to market during
April has reflected a seasonal decline. The
receipts of wheat, however, have been an exception. At Minneapolis and Duluth wheat
receipts were 21.7 per cent larger than last
month and 31.1 per cent larger than receipts
during April, 1920. The receipts at the four
principal markets in district No. 10 (Kansas
City) were unusually heavy for the season of
the year, being 6,307,300 bushels or 136.4 per
cent larger than receipts during April, 1920.
Minneapolis and Duluth receipts of corn, oats,
and barley have all shown very large decreases from last month, namely, 64.4 per cent
for corn, 67.2 per cent for oats, and 39.9 per
cent for barley. Decreases in the receipts of
these grains were also noted at the four principal markets of district No. 10 (Kansas City).
This district reports that "the farmers are
apparently holding much of their corn until a
good crop is assured for this year." On the
other hand, April shipments of grains from
Minneapolis and Duluth were 35.9 per cent
larger than last month, but were 16.8 per cent
smaller than shipments during April, 1920.
Stocks of all grains at the close of April in the
terminal elevators at these cities were 15.3
per cent smaller than at the close of March,
but were 14.8 per cent larger than at the close
of April, 1920. The price of grains during
April generally ruled lower than during March,
the April median price of cash wheat No. 1
Dark Northern at Minneapolis being $1.57 per
bushel, as against $1.72 during March. Prices
have taken an upturn during May as a result
of continued reports of crop deterioration.
FLOUR,
Somewhat greater demand for flour is
reported in certain sections. In district No.
8 (St. Louis) an increase in domestic sales is
ascribed to "low stocks in the hands of retailers
and consumers generally," although trade as
a whole is far below normal. In district No.
10 (Kansas City) there is a slight improvement
in the bakery demand, although jobbers are
buying flour sparingly. Export demand has
been sustained in the latter district, while
in district No. 8 (St. Louis) it has evidenced
JUNE, 1921.
decided symptoms of improvement. Production during April showed some increase over
March. Although average April production
in the United States for the past six years has
decreased about 4 per cent from the March
figure, output of mills manufacturing 75 per
cent of the flour production in district No. 9
(Minneapolis) during the five weeks ending
April 30 increased 4 per cent over the output
during the five weeks ending March 26 (from
2,220,685 barrels to 2,312,385 barrels). This
was 28 per cent greater than the output of
1,814,180 barrels during the corresponding
period of 1920. These mills were operating
at about 43 per cent of capacity during April,
1921, Output of reporting mills in districtNo. 10 (Kansas City) increased 19 per cent
in April, 1921, over the April, 1920, figure
(from 998,981 barrels to 1,193,081 barrels),
and the mills operated at 54 per cent of capacity. Although the output fell off during the
first week of May, it was again higher during
the second week than during the corresponding
week last year. Mill operation in district No.
8 (St. Louis) during the 30-day period ending
May 15 was at from 40 to 50 per cent of capacity. On the other hand, millers in the
Pacific Northwest, due to the lack of demand
for flour, have been more active during the
past few months in exporting wheat than in
manufacturing flour, rfone of the mills in
that section are heavily stocked with wheat,
and the reports of 13 representative firms
show 610,502 bushels on hand May 1, as compared with 1,024,522 bushels on April 1 and
1,039,605 bushels on May 1, 1920. Output
decreased from 629,417 barrels reported by
76 mills in March to 563,166 barrels reported
by 75 mills in April, and the mills operated
at 34.5 per cent of capacity during April as
compared with 45 per cent during March and
69.8 per cent during April, 1920. The price of
flour showed a downward tendency during April,
but since the opening of May has again increased with the increase in the price of wheat.
LIVE STOCK.
As a result of the cold weather, both ranges
and stock have undergone some deterioration
in various sections, but the adverse effect in
general has not been pronounced because of
the fact that stock had been in good condition
as a result of the mild winter and plentiful
supply of feed. There has, however, been a
serious shortage of moisture in the Texas Panhandle, eastern New Mexico, and Arizona.
Stock in that section is reported in poor
condition and there has been considerable
feeding in New Mexico. Cattle in large
numbers have been moved from the drought
stricken areas into Texas pastures that have
been recently vacated in "what is said to be
the heaviest grass cattle movement in many
years." Receipts of each of the three principal
classes of live stock during April show a
falling off from the March figures, but in the
case of cattle and calves alone are they less
than for the same period last year. Receipts
of cattle and calves at 15 western markets
during April were 994,916 head, as compared
with 1,119,548 head during March and 1,037,350
head during April, 1920. The respective index
numbers are 99, 111, and 103. Receipts of
hogs decreased from 2,390,480 head during
March, corresponding to an index number of
109, to 2,279,495 head during April, corresponding to an index number of 104, as compared with 2,109,195 head during April, 1920,
corresponding to an index number of 96.
April receipts of sheep were 1,077,806 head, as
compared with 1,161,549 head in March and
927,800 head in April, 1920. The respective
index numbers are 79, 85, and 68. In district
No. 12 (San Francisco) there has been an
increase in shipments of grass-fed steers and
spring lambs to eastern markets, while in
district No. 11 (Dallas) the spring market
movement "has been slow to materialize."
The average price of cattle and hogs during
April was decidedly lower than in March.
The most recent quotations appear to show
prices at approximately the same levels.
Sheep prices during April and May showed
little change. Production of packing-house
products continues on a greatly curtailed
scale, but some improvement was noted in
April business. There were signs of a revival
oi buying for export account.
PETROLEUM.
Petroleum production continued to increase
during April and the early part of May, despite the fact that the March output was
larger than that recorded in any previous
month. The Kansas-Oklahoma field, which
showed the most important increase in production, had an average daily production of
386,000 barrels during the four weeks ending
May 13, as compared with an average daily
production of 370,500 barrels for the four
weeks ending April 18, and an average daily
production of 356,000 barrels for the corresponding period in 1920. The average daily
output of California was 338,981 barrels during
April, as compared with 337,683 barrels in
March. In contrast to these increases the
average daily production of the oil fields in
district No. 11 (Dallas) continued to decline
659
FEDERAL, RESERVE BULLETIN.
JUNE, 1921.
from 403,243 barrels in February and 394,174
barrels in March to 386,249 barrels in April.
Drilling operations decreased during April,
although there is normally a considerable
increase at this season of the year. District
No. 11 (Dallas) led in this decline with an
initial average daily production of 97,176
barrels in April, as compared with 139,413
barrels in March. The number of wells completed in that district dropped from 395 to
359. However, an entirely new field was
opened by the discovery of a 5,000-barrel well
near Haynesville, La. The number of wells
completed in district No. 10 (Kansas City)
declined from 768 in March to 588 during
April, but the average daily initial production
only declined from 71,460 barrels to 65,147
barrels. Fifty-eight new wells, with an initial
daily output of 18,470 barrels, were opened
during April in California. Pipe-line companies during April announced a cut of 25
cents in the price of crude oil in Texas. This
reduced the price to $1.50 in north Texas
fields and to $1 in the coastal section. The
same reduction was made in prices of all grades
of crude oil in certain of the California fields,
but there was an increase in the price of Pennsylvania crude oil. The prices of most of the
leading petroleum products declined during
April, but the declines were more marked in the
case of those products which are used purely
for industrial purposes than in the case of those
required by automobiles.
COAL.
Demand for bituminous coal is still very
slack in all sections of the country. However, production has run considerably below
consumption, as is evidenced by a decline in
stocks from about 45,000,000 tons on January
1 to 37,000,000 tons on April 1. Production
for April amounted to 27,875,000 tons, as compared with 30,328,000 tons during March and
37,939,000 tons during April, 1920. The
respective index numbers are 75, 82, and 102.
Many mines in Alabama and Tennessee are
shut down for lack of orders, and others are
operated only two or three days a week.
District No. 10 (Kansas City) notes an improvement in production, but reports a great
lack of market demand, even in the case of
railroad fuel. Production of anthracite coal
increased somewhat during April and amounted
to 7,914,000 tons, corresponding to an index
number of 107, as compared with 7,603,000
tons during March, corresponding to an index
number of 103, and 6,225,000 tons during
April, 1920, corresponding to an index number
of 84. Reports from district No. 3 (Phila-
660
FEDERAL, RESERVE BULLETIN.
JUNE, 1.021.
delphia) show an increase of nearly 50 per cent
in the stocks of retailers between January 1
and April 1 and a considerable decline in consumers' supplies. Leading retailers in that
district announced advances of 25 cents per
ton for domestic sizes during the first two weeks
of May, but this action has failed to stimulate
the demand. Business in steam sizes continues to be very stagnant, as a result of curtailment in industrial operations and severe
competition from bituminous sources. In district No. 2 (New York) demand for egg and
stove sizes of anthracite is reported fair, but
other sizes have almost no market. Beehive
coke production is still very low, and ovens in
the Connellsville district are operating at less
than one-fifth of capacity. B}^-product coke
production is at a higher rate, but this is due,
in part, to the demand for the by-products.
Accumulation of stocks of coke has resulted in
strenuous price cutting.
The number of furnaces in blast further decreased during April from 103 at the opening
of the month to 96 at the close. Pig-iron production during April was 1,193,041 tons, corresponding to an index number of 51, as compared with 1,595,522 tons during March, corresponding to an index number of 69. Nevertheless, it is stated from district No. 3 (Philadelphia) that stocks of pig iron are undoubtedly
accumulating. Many blast furnaces in that
district are being operated merely to utilize the
coke output of by-product ovens, which have
been kept in operation as a result of the demand for the by-products and because of the
danger of ovens deteriorating if closed. Steelingot production has likewise decreased from
1,570,978 tons in March to 1,213,958 tons in
April. The respective index numbers are
67 and 52. In district No. 6 (Atlanta) alone
steel mill operations are reported to show improvement.
IRON AND STEEL.
NONFERROUS METALS.
The iron and steel industry continues in an
unsettled condition. The volume of new business is small and largely for immediate needs,
in spite of the price reductions announced some
time ago. In fact, it is stated that when there
have been larger tonnages to distribute buyers
are usually shopping extensively, with the
result that some concessions in prices have
developed, for example, on wire nails. Export
trade, it is stated, continues dull. Seasonal
increases in purchasing, however, are shown
by the automobile and oil industries. These
have given rise on the one hand to some demand
for sheets, bars, and strip steel, as well as to
the release of orders on which deliveries had
been suspended, and on the other hand to some
demand for tubular goods. Automobile manufacturers, it is stated from district No. 3 (Philadelphia), are, however, apparently drawing
heavily on their accumulated stocks, and the
demand in both industries is reported to be
far from normal. There has been some increase
in demand for fabricated steel for structural
work. Thus the report of the Bridge Builders
and Structural Society shows a further increase
in orders placed with its membership from 29
per cent of capacity in March to 3 2 | per cent
in April. The unfilled orders of the United
States Steel Corporation, however, show a further falling off, reflecting the conditions indicated above. At the close of April they were
5,845,224 tons, as compared with 6,284,765
tons at the close of March. The respective
index numbers are 111 and 116. It is estimated that in general the industry is now operating at from 35 to 40 per cent of capacity.
Copper production declined very considerably during April, as a result of the closing of
most of the large copper mines. Production of
reporting companies in northern Michigan
amounted to only 4,282,414 pounds in April, as
compared with 11,201,915 pounds in March and
11,907,128 pounds in April, 1920. District No.
12 (San Francisco) reports that for those mines
which are still operating, copper production is
approximately 47 per cent of capacity. As a
result of the curtailment of mining operations
the price of copper (New York, net refinery)
rosefrom 12.375 cents to 12.75 cents during May,
but volume of demand has not shown any noteworthy improvement. The price of zinc increased slightly during the latter part of April,
but receded during May to a level only slightly
higher than that recorded in the middle of
April. Zinc production during April amounted
to 16,550 tons, as compared with 15,741 tons
in March. Stocks of zinc on April 30 totaled
79,581 tons, as compared with 80,990 tons on
April 1. Lead prices continued to advance
during April and May, both for ore at the mine
and for refined lead at New York and St.
Louis. District No. 10 (Kansas City) reports
that, as a result of the increase of lead ore
prices, additional properties are opening each
week and a considerable portion of the labor
surplus is being absorbed.
COTTON TEXTILES.
Prices of raw cotton advanced somewhat
during April and quotations manifested less
instability from day to day. Consumption
during the month amounted to 408,882 bales,
JUNE, 1921.
or 29,000 bales less than in March. A drop in
consumption is, however, usual at this season
of the year. There has been an increase in
activity of the cotton yarn mills in districts
No. 1 (Boston) and No. 3 (Philadelphia). The
Philadelphia report states that the greatest
part of the business comes from the hosiery
and light-weight underwear trade. Orders
still remain small and there is little inclination
to place them far ahead. More mills resumed
operations in April, and production varied
from about 50 p>er cent to 75 per cent of
capacity. The situation in district No. 6
(Atlanta), so far as indicated by returns made
by 10 representative yarn mills, showed contrary tendencies. These mills reported a
decrease of 13.4 per cent during April in the
quantity of their output as compared with
March, while production was 38.8 per cent
below that of April, 1920. Shipments fell off
33.5 per cent from the preceding month, while
orders on hand at the end of April were 12.3
er cent below those for the end of March.
>n the other hand, 14 cloth mills in district
No. 6 (Atlanta) had a yardage 0.8 per cent in
excess of that for March and orders on hand at
the end of the month showed an increase of 8
per cent. District No. 1 (Boston) states that
buying is so close and such little margin is left
for securing profits that manufacturers are
unwilling to accept orders far in advance, so
that in print cloths, more particularly, contracts of longer duration than July are the
exception. In the case of ginghams and
sheetings, which were early subjected to price
revisions, sales have been well sustained, and
in some instances the gingham output has
been taken for a four months7 period. Sales
of print cloth at Fall River amounted to about
550,000 pieces for the four weeks ended May
14—an increase of 28 per cent over the preceding period of four weeks.
g
FINISHING OF COTTON FABRICS.
Thirty-four of the 58 members of the
National Association of Finishers of Cotton
Fabrics reported total finished yards billed
during the month at 86,311,438 yards, as
compared with 86,732,621 yards in March.
The total average percentage of capacity
operated was 66 per cent for all reporting
districts, as compared with 67 per cent during
the preceding month. The total gray yardage
of finishing orders received amounted to
92,920,824, as compared with 88,342,599 in
March. The total average work ahead at the
end of the month amounted to 10 days for all
reporting districts, as compared with 8.4 days
for the preceding month.
661
FEDERAL RESERVE BULLETIN.
HOSIERY.
The continuance of the strike in Philadelphia
full-fashioned hosiery mills resulted in insistent
demands upon other centers. But most mills,
having booked orders for three to four months
in advance, were unable to accept new business. As a result seamless and mock-fashioned
silk lines have been doing unusually well, and
some mills have been using night shifts. The
demand for seamless cotton hosiery is not so
great as for other lines; in fact in some instances
business is dull. Twenty-three firms selling to
the wholesale trade, which regularly report to
the Federal Reserve Bank of Philadelphia, reported an increase of 13.3 per cent in the value
of the product manufactured during April as
compared with March. Orders booked during
April declined, however, 28.3 per cent, while
unfilled orders at the end of April registered
a fractional increase of 0.3 per cent. The
eight firms selling to the retail trade had increased the value of their output 43.3 per cent
during the month. Orders booked during the
month were 0.7 per cent larger than those of
March, and unfilled orders on hand at the end
of the month were 15.7 per cent in excess of
those on hand at the end of March.
UNDERWEAR.
District No. 3 (Philadelphia) reports that
although orders for fall are being placed with
the underwear mills, they are so small that they
barely amount to 20 per cent of what is normal
for this season of the year. The cool and wet
weather of early May caused an immediate
falling off in orders for current delivery—good
evidence of the uncertain state of the market.
" I n the main, however, the market displays
considerable activity, and manufacturers in
many lines are unable to meet the present demand for short-time deliveries." The 21 firms
which make monthly reports had an average
output 5.7 per cent less in April than during
the preceding month. Orders booked during
April fell 20.7 per cent as compared with March,
and unfilled orders on hand April 30 were 5.3
per cent less than at the end of the previous
month.
The 61 mills making reports to the Knit
Goods Manufacturers' Association of America
had an output in April of 109,937 dozens of
winter underwear, which was 35.6 per cent
of normal. The production of summer underwear amounted to 292,001 dozens, or 58.3 per
cent of normal. Thirty-two representative
mills which furnished data for both March and
April had a production of 275,382 dozens during the latter month, as compared with 285,515
dozens in March. Unfilled orders on the 1st
662
FEDEKAL RESERVE BULLETIN.
of April rose from 361,076 to 423,727 dozens.
New orders received during the month of April
rose from 354,959 dozens to 363,543 dozens.
There was a slight drop in cancellations, which
fell from 4,937 dozens to 4,279 dozens.
JUNE, 1921.
March of this year. Suits made in April were
40.8 per cent below the numbers for the same
month a year ago and 20.2 per cent below the
totals for March.
SILK TEXTILES.
WOOLEN TEXTILES.
The new wool clip is now being gathered, and
sales in district No. 12 (San Francisco) are
reported at prices of 10 to 16 cents per pound
in the grease as compared with 50 cents per
pound last year. The district clip will probably be somewhat below that of the preceding
year. On the basis of estimates given by representative wool growers and warehouse companies, it is thought that the 1921 clip will be
anywhere from 75 per cent of the 1920 clip in
the States of Arizona and Washington to 100
per cent in Oregon and Utah. Estimates for
California and Idaho are put at 90 per cent and
at 80 per cent for Nevada. Unsold holdings in
all sections of the country are thought to approximate 65 per cent to 75 per cent of the 1920
clip. Western holdings have been moving eastward by water in considerable volume for the
past two months. District No. 1 (Boston) reports
that the wool market is even more of a buyers'
market than it was in March, as the large
stocks of raw wool have been augmented by
further importations of wool and tops, which
have depressed prices. The finer counts of
woolen and worsted yarns are in demand in
district No. 3 (Philadelphia), but no substantial price changes have occurred since April,
although some buyers have asked concessions
from the contract prices of March in order to
meet current quotations. The cloth mills in
all sections are exhibiting a fairly high degree
of activity, although there appear to have been
no developments of particular interest during
the past month.
MEN'S CLOTHING.
District No. 7 (Chicago) has secured returns
from five representative clothing manufacturers and nine tailors to the trade, and these
statistics are sufficiently comprehensive to give
a fairly complete picture of the clothing industry for the city of Chicago. Orders for fall suits
received by the clothing manufacturers to date
were 27.5 per cent less in terms of suit units
than those for the same season during the
previous year, while the number of suits made
in April was 29.9 per cent less than during the
same month a year ago. The tailors to the
trade reported 42 per cent fewer orders (expressed in suit units) in April than during
April? 1920, and 23,8 per cent less than during
Districts No. 2 (New York) and No. 3
(Philadelphia) both mention the fact that the
silk industry was less active during the last
week in April and at the beginning of May.
The drop, however, is thought to mark the
transition from the spring to the fall season.
Orders for fall delivery are coming in slowly,
in sufficient quantity to maintain operations
at about 60 per cent of capacity. Reports
from Paterson and vicinity indicate a slight
advance in May operations over the 60 per
cent reported for April. Imports of raw silk
into New York during April amounted to 35,886
bales, as compared with 14,043 bales in March.
Stocks in New York warehouses at the end of
April rose to 20,038 bales from 16,386 bales.
SHOES AND LEATHER.
Prices of hides and skins have advanced
rather sharply during May from the abnormally low levels prevailing in April. Calfskin prices registered advances of approximately 50 per cent by about May 20, while
cow and steer hide prices increased between
20 and 30 per cent. The number of skins
purchased advanced coincidently with the
rise in prices. The demand for calfskins,
especially in the light weights, and for colored
glazed kid has increased steadily in volume,
until there has arisen considerable difficulty
in obtaining these varieties of leather. During the past month demand has spread from
these lines to more staple leathers. Sole
leather has advanced about 2 cents per pound,
and considerable demand for black glazed kid
has developed. The demand for belting leather,
on the other hand, has shown some slackening
during May. Retail shoe sales have continued
on a very satisfactory scale during April and
May. Demand for women's shoes is still considerably in excess of demand for men's shoes.
Shoe factories in district No. 1 (Boston) continued to operate in April at about 50 per cent
of capacity, as in February and March. Shoe
stocks of seven Boston department stores were
32 per cent less on May 1 than on the corresponding date in 1920. The sales of shoes of
these stores during the first four months of
1921, measured in dollars, were less than 1 per
cent below sales in the corresponding period of
1920. Ten New England stores outside of
Boston showed shoe sales 17.5 per cent less
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
during the first four months of 1921 than
during the corresponding period of 1920.
District No. 3 (Philadelphia) reports that
unfilled contracts for summer delivery are
sufficient to occupy most plants at capacity
until July 15. Many orders for fall delivery
have been placed, which indicates an increased
confidence in the present level of prices.
Plant operations in district No. 8 (St. Louis)
are being maintained at from 90 to 100 per
cent of capacity. The demand centers in
cheaper shoes and specialty goods. Prices in
district No. 8 (St. Louis) declined between 5
and 10 per cent during the past month.
During May two of the largest shoe manufacturing concerns in the United States and
a large tanning company combined to form a
new corporation which will manufacture and
distribute shoes on a large scale in both the
eastern and western States.
LUMBER.
Demand for lumber continued to improve
during April as a result of an increase in building operations and a further recession in prices.
District No. 12 (San Francisco) reports that the
present market for lumber is showing activity
and stability. " The demand is increasing from
week to week, and movement to local7 and eastern consuming centers is growing/ Orders
received during the four weeks ending April 30
by the four lumber manufacturers' associations
of district No. 12 (San Francisco) showed an
increase of 54 per cent over those for the four
weeks ending March 26. Production during
the same period increased 47.4 per cent and
shipments 58.4 per cent. Shipments were 11.7
per cent above production, resulting in a further
reduction of stocks. One hundred and fifteen
mills belonging to the West Coast Lumbermen's
Association reported for the four weeks ending
March 26 a cut of 220,262,000 board feet, shipments of 253,427,000 feet, and orders of
263,666,000 feet. Corresponding figures for the
four weeks ending March 26, with 118 mills
reporting, were as follows: 187,917,000 feet,
209,970,000 feet, and 213,431,000 feet. The
logging industry has not improved in unison
with the mill industry, and, although the present
visible supply of logs is limited, many logging
companies show no tendency to resume operations. Increased demand for southern pine
was evidenced in district No. 6 (Atlanta) during
April. In the week ending April 29 orders
received by 134 mills of the Southern Pine
Association were only 7.8 per cent below normal production, whereas actual production was
26.8 per cent and shipments 14.9 per cent below
normal production. In district No. 11 (Dallas)
663
the production of 29 southern pine mills
amounted to 61 per cent of normal. Orders
booked by the 29 mills were equivalent to 72
per cent of their normal production, whereas
the same number of mills only booked orders
equal to 61 per cent of their normal production
in March. On April 29 the volume of unfilled
orders on the books of these 29 reporting mills
was 37,699,200 feet, in comparison with orders
totaling 30,265,302 feet reported by a like
number of mills on April 1. District No. 8
(St. Louis) reports that there was a heavy volume of orders for yellow pine and Douglas fir
in the latter part of April, which has been followed by a lull in demand. "The tendency of
prices of high-grade hardwoods is decidedly
upward, lower grades continuing weak and
unsteady." Reports of both manufacturers
and retailers of lumber in district No. 9 (Minneapolis) indicate a considerable increase of
activity. The April cut of 15 manufacturers
was 23.2 per cent greater than in March, and
shipments increased 48.2 per cent. Stocks at
the end of the month were 1.1 per cent higher
than at the close of March. Comparison with
April, 1920, however, shows cut 37.1 per cent
less, shipments 47.1 per cent less, and stocks
46.5 per cent greater. District No. 5 (Richmond) states that lumber prices have fallen
from 10 to 15 per cent in the past month. An
increased demand for southern pine and Douglas fir is reported from district No. 3 (Philadelphia), but "sales do not average more than
60 per cent of last spring's business." Prices
in that district have declined since January 1,
and quotations for both hardwood and softwood are now about 50 per cent below the high
levels of 1920.
BUILDING OPERATIONS.
Building operations showed a marked increase of activity during April. This activity
is evidenced alike by statistics of the value of
contracts awarded, the number of building
permits issued, and the value of building permits. Whereas the increase of building operations in February was confined to States
west of the Mississippi River, an advance in
April was reported from almost all sections of
the country. This upward movement was
most general in the case of residential building,
but considerable increases in other classes of
building occurred in some of the districts.
Contracts awarded in district No. 1 (Boston)
amounted to about $16,700,000 in April, as
compared with $12,200,000 in March, an
increase of 37 per cent. About $6,500,000 of
the April total was for residential purposes, as
compared with $4,300?000 in March. In dis-
664
FEDERAL KESERVE BULLETIN.
trict No. 2 (New York) contracts awarded
during April had a total value of about
$52,100,000, as compared with a value of
$30,900,000 for March, an increase of 69 per
cent. Residential building amounted to $18,100,000 in March and $28,600,000 in April.
Contracts totaling $15,100,000, of which
$6,300,000 were for residential purposes, were
awarded in district No. 3 (Philadelphia) during
April, in comparison with March awards of
$14,100,000, of which $6,000,000 were for
residential purposes. In district No. 4 (Cleveland) contracts awarded during April totaled
about $34,800,000, as compared with awards
amounting to $32,700,000 in March. Of the
April total, only $9,100,000 was for residential
purposes, as compared with $11,400,000 in
March.
Permits for new buildings in 23 cities of
district No. 5 (Richmond) totaled 1,688 in
April, as compared with 1,718 in March. The
value of this new construction amounted to
$13,594,575, the highest monthly figure ever
recorded for this group of cities. This was due
to the inclusion of one industrial project which
will cost $6,000,000. "The housing situation1
in all cities in the district continues critical/'
A considerable increase in building activity is
reported from district No. 6 (Atlanta), but
this is more noticeable in the number than in
the value of building permits. Contracts
awarded in district No. 7 (Chicago) during
April totaled $53,700,000, of which $13,000,000
were for residences, as compared with a total
of $37,400,000 during March, of which $9,300,000 were for residences. In five reporting
cities of district No. 8 (St. Louis) there was an
increase in number of permits during April,
but their total value was less than in March.
Nine cities of district No. 9 (Minneapolis)
issued 2,868 permits, valued at $5,606,011
during April, as compared with 1,639 permits,
valued at $2,621,591, during March. This
increase in building activity is accounted for
almost entirely by an increase in the permits
issued for the construction of small buildings.
Reports from 17 cities in district No. 10
(Kansas City) show a total of 2,668 permits
issued in April, as compared with 2,778 in
March. Nine cities in district No. 11 (Dallas)
report 2,588 permits, valued at $5,633,649,
issued in April, as compared with 2,331 permits, valued at $5,190,191, issued in March.
The value of building permits for 20 cities of
district No. 12 (San Francisco) amounted to
$19,907,621 in April, in comparison with
$18,542,835 in March. " In southern California
activity 7approaching a building boom is in
progress/
JUNE, 1921,
EMPLOYMENT.
The employment situation has shown no
signs of improvement during the past month.
On the contrary, all available evidence points
to a slight increase in numbers unemployed
despite the absorption of labor by farming
districts and industries which have experienced
a limited revival of active operations. In New
England the situation remained virtually unchanged during the month. There was a
slightly increased demand for textile operatives,
especially weavers, and for mechanics in the
building trades. There was no revival in the
metal trades, however. The Boston Public
Employment Office reported a fair demand for
common labor at 50 cents per hour. The
Springfield office stated that the demand for
farm hands was less than usual, and there
was no difficulty in securing men at wages 20
per cent to 25 per cent below those prevailing
a year ago. During May several rather extensive strikes added to the number of unemployed
—notably those affecting the garment and
paper making industries and the building
trades. In district No. 2 (New York) there
was probably a slight decrease in numbers
employed during the month. The New York
State Bureau of Labor estimated that about
500,000 persons were idle, 150,000 of whom
were unemployed because of labor disputes.
Among the latter were included marine workers,
traction and building workers in various cities,
and employees of printing and publishing
establishments. The industrial commission
reports a 2 per cent reduction in number?
employed in factories of New York State
during April. Wage reductions, which affected
about one-half the firms reporting to the
Federal Reserve Bank of New York in April,
have since become more widespread, and it is
estimated that about three-fourths of the
workers in the district have been affected by
reductions either achieved or prospective.
Employment conditions have undergone little
change in district No. 3 (Philadelphia). As a
result of attempts to reduce wages, strikes are
in progress in Philadelphia affecting the fullfashioned hosiery workers, the printers, and
carpet weavers. There are also strikes among
the building-trade workers of Philadelphia and
other large cities.
In district No. 5 (Richmond) unemployment
is particularly noticeable " among middleaged and older women, who have been released
from factories in considerable numbers." Farm
labor is in excess of demand and wages have
been greatly reduced. In district No. 6
(Atlanta) there was an increase in April of 8.8
JUNE, 1921.
FEDERAL RESERVE BULLETIN.
per cent in numbers employed in Atlanta,
according to the United States Department of
Labor. On the other hand, decreases of 13.2
per cent and 8,9 per cent, respectively, were
reported from New Orleans and Chattanooga.
A strike of metal-trade workers in New
Orleans, which had lasted two months, was
finally settled by an agreement to accept
wage reductions of 10 cents per hour. The
New Orleans printers were on strike at date
of writing, asking a 44-hour week instead of
the prevailing 48-hour week. The Federal
Reserve Bank of Chicago received reports
directly from 178 concerns, at present employing 115,000 workers, giving data as to the
numbers employed and the amount of pay
roll in April as compared with the preceding
month. There had been a decrease of 3.9 per
cent in numbers as compared with March
returns for Chicago and 1.9 per cent for the
district as a whole. Pay-roll totals had fallen
6.3 per cent in Chicago and 4.2 per cent in the
district at large. The Free Employment
Offices of Illinois showed a fall during April
from 275 to 232 in the number of applications
for each 100 places open. In Detroit, however,
at date of writing 118,497 men were reported
unemployed as compared with 100,347 on
April 12. In district No. 8 (St. Louis) no
particular change in conditions is noted. The
trend in wages continues sharply downward,
and further cuts have occurred within the past
30 days in lumber, flour milling, cooperage,
plumbers' supplies, farm implements, stoves,
automobile bodies, candy, and in some cases
in the building trades. Unemployment is
especially pronounced among common labor
and railroad workers. In district No. 9
(Minneapolis), reports from 15 lumber manufacturers who employed 1,984 men in March
showed an average decrease of 5 per cent in
number of employees in April, while 29 ironmining companies employing 6,309 men in
March had reduced their forces about 6 per
cent during the month. Michigan copper
mining companies showed a reduction of 43
per cent in numbers in April, as a result of
rather extensive closing. In the farming districts, however, there is little surplus labor.
The United States Department of Labor reported decreases in numbers employed at the
end of April as compared with the end of
March for both Minneapolis and St. Paul,
amounting to one-tenth of 1 per cent and 13.7
per cent, respectively. These figures, however, apply only to large establishments employing over 500 men. District No. 11 (Dallas) says " an unusually large surplus of farm
labor is reported from the rural districts, due
largely to the growing tendency on the part
665
of the farmers to cultivate only such acreage
as they are able to take care of without hired
help." Largely as a result of strikes in the
building trades and among marine workers,
unemployment increased in district No. 12
(San Francisco) where 15,000 men were out of
work in May, but elsewhere in the district decreases were the rule. Although improved
conditions in the lumber industry together
with demands for agricultural labor caused a
decrease in the surplus labor in the cities, the
reduction has not been as material as was anticipated, because demand, as elsewhere, was
restricted by a disposition on the part of farmers to do more work unassisted.
WHOLESALE TRADE.
The seasonal increases in the sales of reporting wholesale firms in the four leading lines of
hardware, groceries, dry goods, and boots and
shoes, which were quite pronounced and general throughout the country during the month
of March, were followed by equally marked recessions in May sales for most reporting lines.
The returns from 25 wholesale hardware firms
located in district No. 3 (Philadelphia) were
an exception to the general rule, as net sales
increased 11.4 per cent during April as compared with March, although sales were 18.7 per
cent below those for April, 1920. The increase
is attributed to a gain in building activity, as
the demand for mill supplies and general hardware was said to be the poorest that has existed in recent months. Reports from 51
wholesale grocery firms in that district showed
declines of 14.9 per cent from March totals and
38.4 per cent from the sales of April, 1920.
Although sharp price declines explain some
part of the difference in total sales values as
between this year and last, they do not account
for the whole of that difference. Returns from
district No. 4 (Cleveland) present comparisons
only with April, 1920, and declines for the
eight hardware firms were 21.9 per cent,
slightly greater than in district No. 3 (Philadelphia), while sales of 14 grocery houses were
37.7 per cent less, and sales of five dry goods
concerns 4.2 per cent lower. In hardware,
groceries, dry goods, and boots and shoes, sales
in district No. 5 (Richmond) fell off from the
March total by amounts ranging from 1.7 per
cent in the case of hardware to 27.2 per cent
in dry goods. The declines as compared with
April, 1920, varied from 22.7 per cent in hardware to 39.1 per cent in dry goods. Orders in
all lines except dry goods are for small lots for
immediate shipment. Declines in April sales
as compared with March were more pronounced
in general in district No. 6 (Atlanta) than in
666
FEDERAL RESERVE BULLETIN.
district No. 5 (Richmond), The 15 reporting
dry goods firms, however, showed a reduction
of 25.5 per cent, which was not quite so large
as in the Richmond section. The 13 hardware
firms reported sales 10.6 per cent below March;
in the case of 20 grocery firms, the drop was 16.2
per cent, and for seven shoe houses, 33.4 per cent.
Declines as compared with a year ago averaged 39.7 per cent for dry goods, the minimum
figure, and 47.5 per cent for groceries, the
maximum.
In district No. 7 (Chicago) grocery sales
of 26 firms suffered an almost equally heavy
decline of 42.8 per cent, dry goods sales
(12 firms) were 35.3 per cent lower, and
shoe sales (10 firms) 24.8 per cent less than
during April, 1920. In district No. 10 (Kansas
City) the sales of three reporting grocery
firms were 32.2 per cent below those of April,
1920. April sales were also 6.7 per cent below March sales, although weather and road
conditions were assigned as the cause of this
fact. The wholesale hardware sales of three
reporting firms are likewise 40 per cent below
the totals of a year ago and 18.1 per cent less
than in March. Contrary to the general tendency, the wholesale trade returns for district No. 11 (Dallas) had shown pronounced
reductions in March sales of hardware as compared with February, and the report for April
states that reductions not only continued but
were slightly greater than in March. Seventeen grocery firms had sales 12.4 per cent below March totals, which in turn were slightly
below February figures; sales of five dry goods
houses were 25.8 per cent lower; and sales of
two hardware firms, 9.7 per cent less. As
compared with April, 1920, decreases ranged
from 30 per cent for hardware to 48 per cent
for groceries. District No. 12 (San Francisco)
says that the volume of orders for summer delivery placed by retailers is not only much
below last year, but no improvement in this
respect was witnessed in April. Buying continues to be in limited quantities for immediate
need. The reductions in sales, however, as
compared with the proceding month are on the
whole not by any means as striking as in other
districts. Sales of the 24 reporting hardware
firms dropped only 1.7 per cent; grocery sales
(30 firms) fell 13.8 per cent; shoe sales (18 firms)
6.4 per cent, and dry goods sales (12 firms)
recorded a slight advance of 1.4 per cent. As
compared with a year ago, declines ran from
15.2 per cent for dry goods to 36.2 per cent for
groceries.
JUNE, 1921.
cally every district the net sales showed a decrease both when compared with last month
and also with the same month a year ago.
However, when the price changes are considered, it would seem that the actual volume
of units sold during April, 1921, was greater
than that sold during the same month a year
ago. The unseasonable weather conditions
during April, and the fact that Easter fell in
March this year instead of in April were, of
course, large factors in the decrease of sales.
The reports from representative department
stores show a decrease in net sales from the
same month a year ago of 1.9 per cent in district No. 1 (Boston), 0.5 per cent in district No.
2 (New York), 0.4 per cent in district No. 3
(Philadelphia), 0.7 per cent in district No. 5
(Richmond), 17.7 per cent in district No. 11
(Dallas), and 9.3 per cent in district No. 12
(San Francisco). In every district stocks on
hand at the end of the month again showed a
large decrease from stocks on hand at the end
of April, 1920, the decrease in most cases being
larger than the comparative figures of a month
ago. Most districts showed a slight increase
in stocks at the close of April as compared with
stocks at the close of March. The rapidity of
the turnover of stocks has been generally slower
than last month. The percentage of outstanding orders at the end of April to total
purchases during the calendar year 1920 has
been generally decreasing, which affords evidence that the merchants have been confining
their purchases to meet immediate requirements and have not been placing any great
amount of orders for future delivery. However, reports from various districts indicate
that some retailers are now beginning to anticipate their requirements in that they are placing some orders for fall delivery.
PRICES.
As regards prices there seems to be increasing
realization of the fact that a relatively stable
wholesale price level will not be obtained until
liquidation has occurred in all lines in which
production, consumption, or prices are out of
harmony one with another. Liquidation of a
pronounced sort has occurred during the course
of the past year in raw materials such as grain
and live stock, cotton, wool, hides, copper and
other nonferrous metals, with the result that
raw materials in these lines are now being sold
at approximately prewar prices. In the case of
cotton, hides, and nonferrous metals conditions
in April and early May were such as to indicate
RETAIL TRADE
that a fair degree of stability had been obtained,
Retail trade throughout the country during and prices showed slight increases over March
April reflected a seasonal decline. In practi- levels. Wool prices, however, continued to
JUNE, 1921.
decline because of the abnormally heavy importations which are being made in anticipation of
the new tariff measure.
It is impossible to say whether this relative
stability in the textile and agricultural lines will
be permanent or not. In the case of cotton,
wool, and grains, stocks which are being held
at present are considerably larger than were
customary before the war. Commodities in
which the carry-over stocks from the period of
abnormal Government demand were relatively
small, did not feel the effect of liquidation as
early as other commodities. When buying was
restricted and production curtailed in textiles
and other lines, however, the effect of this was
passed on to such commodities as coal, petroleum, iron and steel, and other building materials. As a result, prices in these lines have
been reduced, but not as much as in the cases
mentioned above, since stocks had not accumulated to the same extent. Decline in spot
prices of bituminous coal has been very spectacular, but the present level is still as high as
in 1919 and the first months of 1920, and at
present the tendency of these prices seems to
be toward higher levels. Contract prices for
the coming year have apparently not yet crystallized. Pig iron, petroleum, and leading
building materials are still being reduced in
price, with present levels ranging up to and
above twice the prewar level. As conditions
improve in the manufacturing lines, demand
will doubtless increase for these commodities,
but it is impossible to say whether these factors
will be stronger than those making for lower
levels.
An interesting factor of recent weeks is the
readjustment of prices within industries in such
a way as to bring about a more normal relationship of the various grades or classes of manufactured goods to one another. This has been
especially noticeable in the case of cotton cloth.
Profits in certain lines have been narrowed
down to such a point that readjustment of this
sort is essential to future business.
Index numbers of wholesale prices show that
the decline in April was somewnat greater than
in March. The index number of the Bureau
of Labor Statistics shows a decline of 5 per
cent, compared with 3 per cent in March, while
the index number of the Federal Reserve Board,
constructed primarily with the view to international comparisons, also shows a decline of
5 per cent. Retail prices of food were likewise
reduced at a somewhat more rapid rate in April
than in March. According to the index of the
Bureau of Labor Statistics, based upon prices of
43 articles of food in a large number of cities,
the reduction amounted to 1.3 per cent in
March and 2.5 per cent in April. No statistics
667
FEDERAL RESERVE BULLETIN.
are available to show the shift in the retail
prices of other commodities.
SHIPPING.
The shipping situation showed some improvement during May, the most encouraging feature
being a sudden demand in the early part of the
month for the charter of coal-carrying ships for
May loading. The demand was chiefly for
United Kingdom destination, as a result of the
continuance of the British coal strike, but rates
all around stiffened in consequence. Whereas
ships had been chartered to carry coal from
North Atlantic ports to the Continent for as
low as $3.75 per ton in March and April, the
quotation in the early part of May was $5.25
and higher. While these increased rates have
not been sufficient to attract many ships that
had definitely been laid up, they put a stop, for
the time being at least, to further plans of
owners for placing additional vessels in the
hands of caretakers. The conditions underlying the steamship business, namely, high operating costs, diminished cargoes, and low rates, are,
however, not substantially changed, and it is
generally agreed that an increase of production
and of the demand for goods throughout the
world must be realized before the present situation can be much improved.
As for the marine strike in American ports,
the effect has been less serious than was anticipated, although some outgoing steamers have
been delayed. In a statement issued toward
the end of May, Secretary of Commerce Hoover
gave some figures showing the effect of the
marine strike in the various United States ports
from May 1 to 22, inclusive. The figures show
that 190 American steamers were detained by
the strike, while 936 American steamers sailed
from American ports during that time. The
Pacific coast ports have felt the strike most
severely, the Gulf ports somewhat less, and the
Atlantic ports only to a comparatively small
extent.
The Acceptance Market.
The Federal Reserve Banks report the condition of the acceptance market in their respective districts as follows:
DISTRICT NO. 1—BOSTON.
During the latter part of April there was
very little demand for bills, with the result that
dealers' portfolios increased considerably.
There were some sales made through that
period, and the corporations were perhaps the
pest buyers. Short-term bills were a drug on
668
FEDEKAL RESERVE BULLETIN.
the market. Toward the end of the month
there was a better demand consequent upon
the rates being changed from 5f to 5 | for nineties. The demand continued until about the
middle of the month on 90-day bills. About
the middle of the month a slackening up in
demand occurred, and at the close of the period
the bill market was very inactive, a few sales
being made, but not many being offered. The
120-day bills have become more general and
quite a few are offered in this market at rates
of 5J and 6. The buying rates of the Federal
Reserve Bank of Boston were above the outside market most of the month, but on May 12
the pressure on 30-day bills was felt to be so
great that relief was needed, and this bank
accordingly reduced its rate for one day to 5J
per cent; and consequently purchased approximately $5,000,000 worth of bills. Toward the
close of the month the carrying rate of the
Boston bank for bills held for dealers on shortterm agreements was reduced to 5f, as some
of the dealers complained that the market was
pegged at 5f. The change did not result in
undue pressure for accommodation, because it
was possible to control the amount of bills
offered us by suggestion and by indicating a
disinclination to allow dealers to unload their
portfolios on this bank too heavily. Most bills
were made during the month on sugar, but
there was a fair supply of cotton, dollar exchange, wool, and coffee. The Boston Reserve
Bank's portfolio has increased about $7,000,000,
approximately all of these bills being due
within 30 days. The current buying rate of
the Federal Reserve Bank of Boston for prime
90-day bills is 5f, the same for sixties, and 5f
for thirties, with a corresponding increase of £
for less known names. No 6-month bills have
been offered this bank, though bills at 6 per
cent indorsed for 90 days would probably be
bought unless the volume offered was excessive.
No discrimination in the carrying rate on account of maturity is being made, but 6-month
bills when eligible are being taken.
DISTRICT NO. 2—NEW YORK.
During the past four weeks the rate on prime
90-day bills fluctuated between 5f and 5f.
Dealers found it difficult to maintain sales at
the lower rate, and the period closed with 5-|
as the ruling rate. The volume of sales fluctuated with changes in rates. In the first week
in May, when the 5 | rate was maintained, sales
by principal dealers were larger than in any
previous week for nearly three months. Total
sales for the month, however, were approximately equal to the monthly average for the
first quarter.
JUNE, 1921.
About one-third of the bills coming into the
market during the past four weeks were drawn
for the purpose of furnishing dollar exchange.
Another third was composed of bills covering
packers' products, grain, and sugar, in about
equal amounts. In the second week of May
the aggregate of cotton bills increased somewhat, though these were still in smaller volume
than other bills.
On May 16 the Federal Reserve Bank of New
York announced that in accordance with Regulation B, series of 1921, of the Federal Reserve
Board, bills of maturity up to six months,
issued in import and export transactions, might
be offered to the Federal Reserve Banks for
purchase. Heretofore three months has been
the maximum maturity of acceptances eligible
for purchase.
The considerations which led the Board to
make eligible bills of longer maturity are stated
by Gov. Harding as follows: " (1) The desire
to widen the acceptance market by meeting the
wants of savings banks and similar purchasers
of bankers' acceptances who are now deterred
from investing in acceptances of longer than
three months' maturity, because of the lack of
authority of Federal Reserve Banks to purchase longer maturities up to six months; (2)
to provide more ample facilities for financing
import and export trade with countries where
either normal conditions or present abnormal
conditions indicate the desirability of rendering
assistance by making acceptances of maturities
not exceeding six months eligible for purchase
by Federal Reserve Banks."
The minimum buying rate of this bank has
remained unchanged at 5J to 6 per cent for
indorsed prime bills ranging up to 90 days'
maturity.
DISTRICT NO. 3—PHILADELPHIA.
Five dealers in bankers' acceptances report
that sales in this district during April fell off
4 per cent from those in March. The month,
however, shows a very large increase over the
corresponding period m 1920. Three of the five
dealers were selling acceptances in April, 1920,
and sales in April, 1921, were five or six times
as large as at that time.
Reports of 11 accepting Philadelphia banks
may be summarized as follows:
Executed
during
preceding
month.
Mar.10
Apr.10
May 10
1921.
$5,321,000
4,561,000
5,596,000
Outstanding on
date given.
$14,095,000
13,150,000
12,844,000
669
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
As noted in our last review, decreasing
foreign trade has had a noticeable effect in
reducing the volume of bankers' acceptances
executed. Conflicting views are given whether
or not the supply of acceptances is equal to the
demand. City banks have not displayed any
particular interest in the market and the bulk
of the sales are to banks in the smaller centers.
An interesting estimate of the types of
transactions covered by acceptances executed
during April is given by one of the large acceptance firms. Their letter states that imports accounted for 65 per cent of the total,
exports 10 per cent, domestic shipments and
warehousing 10 per cent, and dollar exchange
15 per cent. Bills to finance sugar importations composed a large part of the bills, and
wool, cotton, silk, hides, leathers, grain, oil,
tea, and coffee were also important. Three
of the five dealers hold that bills to create
dollar exchange are of small consequence thus
far, whereas another states that he is handling
a larger number than ever before.
Rates quoted in the first two or three weeks
of May are generally about the same as in April,
but there have been many fluctuations and
variations of one-eighth of 1 per cent are common. Quotations as of the middle of May
were as follows:
Eligible members' bills
Eligible nonmembers' bills
30 days.
60 days.
90 days.
5J-5f
5f-5|
5f-5f
5f-6
5|-5I
51-6
more effectively enable our discount market to
aid overseas commerce.
Prime 90-day bills are quoted at 5f to 5f;
prime 60-day bills at 5 | to 5f; prime 30-day
bills at 5£ to 5f.
DISTRICT NO. 6—ATLANTA.
The amount of domestic acceptances executed by 15 member banks in this district was
reported to be approximately 15 per cent
greater than during the month of March,
although less than one-half of the amountexecuted by the same banks during April,
1920. Foreign acceptances were executed
during April in amounts approximately 11 per
cent less than during March and 19 per cent less
than during April last year. The prevailing
rate of discount is reported at from 6 | per cent
to 8 per cent. The reports received indicate
that a relatively small number of banks are
executing or dealing in acceptances.
The amount of acceptances rediscounted by
the Federal Reserve Bank of Atlanta during
April was larger than for March or February,
but little more than 25 per cent of the amount
held during April of last year.
Shipments of cotton at New Orleans during
April were less than those during March. At
Savannah cotton shipments for export increased over March, and there was also some
foreign movement of naval stores. There is a
close relation between the movement of cotton
and naval stores at the ports of the district and
activity in acceptance transactions.
DISTRICT NO. 4—CLEVELAND.
DISTRICT NO. 7—CHICAGO.
During the month the market for prime
bankers7 acceptances was sporadic, with a considerable falling off in the demand from the
banks of this district. The supply of paper has
continued to increase, as in the previous month.
Brokers were offering a good variety of bills,
but with little material effect on demand. The
rates have not followed the basic principle of
supply and demand, but remained on a level
proportionately lower than other forms of
commercial paper. The trend of the market
throughout the month has shown that there is
no hesitancy in purchasing this form of paper
because of the rate, but more so because there
seems to be but little idle money.
During the month much interest was shown
in the announcement of the Federal Reserve
Board that six months' bankers' acceptances,
issued on import and export transactions, had
now become eligible for open-market purchase
by the Federal Reserve Banks. This will provide a discount market for a class of paper that
previously found little or no demand, and will
Some individual houses report increased demand, especially by correspondent banks,
others by corporations and individuals who
have funds for short-time investments.
Reports received from three dealers and
twenty-nine banks, including practically all
accepting banks in the district, show activities in bankers' acceptances for April, as
follows:
Bills bought
Bills sold
Held at close of month..
Amount accepted
Purchase rates:
30-day maturity..
60-day maturity..
90-day maturity..
29 banks.
3 dealers.
$11,624,000
9,104,000
3,504,000
19,416,000
$11,784,000
9,285,000
2,076,000
Total.
$23,408,000
18,389,000
5,580,000
19,416,000
High. Low.
....5f
5h
.... 5 |
5|
About 60 per cent of the purchases were of
90-day maturity, and the balance equally divided between 30 and 60 days. About twothirds of the purchases were based on transac-
670
FEDERAL RESERVE BULLETIN.
tions involving importation or exportation of
goods, according to reports of banks making
such classification. Mentioned as predominating in the commodities against which bills
were drawn are: Meats, grain, canned goods,
coffee, sugar, crude oil, and agricultural implements. Compared with March, banks show a
fractional per cent decrease in bills bought, a
decrease of 28 per cent in bills held at the close
of month, a decrease of 18 per cent in bills sold,
and an increase of 21 per cent in the amount
of bills accepted. The three dealers who also
reported for March show an increase of 16 per
cent in bills bought, a decrease of 32 per cent
in bills sold, and an increase of 2 per cent in
bills held at the close of the month.
Operations of the Federal Reserve Bank of
Chicago reflect the general acceptance situation, as is shown by the following figures:
During month:
Bankers' acceptances rediscounted
Bills bought i
Bills sold from holdings
Held at the close of month:
Bankers' acceptances rediscounted
Bills bought i
Percentage
change in
April over
March.
April.
March.
$111,500
11,423,244
3,624,680
$283,309
15,022,539
2,052,150
-61
-24
+76
81,500
180,507
7,500,910 11,113,776
-55
-32
JUNE, 1921.
DISTRICT NO. 9—MINNEAPOLIS.
Loans of representative city banks in this
district exhibit a reduction of about 20 per
cent when compared with April a year ago.
The percentages of reduction were largest in
the holdings of bankers' acceptances, cattle
loans, notes of grain, milling, automobile,
and lumber companies, and in personal loans
to bankers and mercantile firms.
DISTRICT NO. 11—DALLAS.
Our holding of bankers7 acceptances purchased in the open market aggregated only
$24,822.60 at the close of April Less than
$4,000 of these bills were acquired by this
bank during that month, and only a nominal
volume seems to have passed through member
banks since our last report. The predominating type of acceptance executed in this district consists of bills of exchange used to
finance the intrastate movement of cotton.
The current rate on this class of paper at the
present time is 8 per cent, which is the rate
quoted by banks at Dallas, El Paso, and Waco,
no quotations being made at Houston, San
Antonio, or Fort Worth.
DISTRICT NO. 12—SAN FRANCISCO.
1
Included in bills bought but not in bills sold are those bought with the
agreement by the seller to repurchase within 15 days.
DISTRICT NO. 8—ST. LOUIS.
The market for bankers7 acceptances in the
past month has been more sustained than for
some time. This is due in part to the better
position of the larger banks and to a more
active demand for such bills from private
investors and corporations having surplus
funds to invest. Formerly private investors
and corporations demanded indorsed bank
bills, but as they become more familiar with
such investments they buy unindorsed bills.
Prime names are selling an eighth to a quarter
off prices of a month ago, thus reflecting easier
money conditions.
Between April 15 and May 15 the high,
low, and customary interest rates prevailing
in St. Louis and Louisville, as reported by
banks in those cities, were as follows:
St. Louis.
Bankers' acceptances of 60 to 90 days:
Indorsed
Unindorsed
H.
6
L.
Louisville.
C. R.
L.
During the past month a broad demand for
bankers' acceptances has existed in Oregon,
Washington, and the southern part of California. In the central and northern parts of
the latter State the demand has been scattered
and of small volume.
The rate for prime nineties has varied between 5f per cent and 5f and is at the present
writing 5f per cent.
The fluctuation in rates has been due in a
measure to the easing of money rates in New
York, but more particularly to the scarcity
of prime bankers' acceptances. The demand
for paper of this character is constantly
rowing, while the supply, due to general
usiness conditions, has decreased somewhat.
f
Acceptances to 100 Per Cent.
Since tlie issuance of the May BULLETIN the following
banks have been authorized by the Federal Reserve
Board to accept drafts and bills of exchange up to 100 per
cent of their capital and surplus:
First National Bank, Bridgeport, Conn.
Commerce Guardian Trust & Savings Bank, Toledo,
Ohio.
JUNE, 1921.
FEDERAL RESERVE BULLETIK.
SUMMARY OF GOVERNOR HARDING'S
SPEECH. 1
RECENT ECONOMIC DEVELOPMENTS.
An examination of the chart on page 672
throws light on the course of events in the
reserve banking field in 1919, 1920, and the
first four months of 1921 in relation to other
economic phenomena. The last three months
of 1919 witnessed a very rapid expansion of
credit, accompanied by a decline in the cash
reserves of the Federal Reserve Banks, due
largely to the export of gold in settlement of
balances accumulated during the war by
South America and the Orient. As early as
the spring of 1919 the Federal Reserve Board
had sounded a warning against undue expansion of bank credit, much of which was used
for speculative purposes, and in November,
1919, a first step in the direction of advancing
discount rates was made. But the expansion
continued. In January, 1920, another advance
in rates was announced, and in May the rate
on commercial paper was advanced to 7 per
cent at four Reserve Banks, while four others
adopted systems of progressive rates.
These measures of the reserve authorities
succeeded in checking the rate of credit expansion, in spite of the fact that the direction of
the gold movement had been reversed and gold
began to come into this country as the result
of efforts of European countries to maintain
their credit in America and of the high premium commanded by the dollar in the money
markets of the world.
In May, 1920, prices had reached the high
level indicated by the index number of wholesale prices of 272, on the basis of 1913 as 100.
The post-war rise in prices was due largely to
speculation, extravagant expenditures, and
rapid expansion of bank credits. Early in
1920 the collapse of the Japanese silk market
presaged the coming of a turn in events. The
public was no longer willing or able to pay the
high prices demanded, and a decline in prices
set in, at first gradual, later precipitate, affecting more particularly raw materials and farm
products. The drop in prices, the higher discount rates, the passing of the crop-moving
season, and the sobering effect of a world-wide
depression on our own business community
are the main causes of the decline in the earning assets of the Reserve Banks since October
of last year. To these causes there was added
in 1921 the decline in the value of our foreign
trade, especially of the excess of exports over
1
Delivered during his recent tour of the Central and Middle Western
States.
671
imports, which from $454,000,000 in December
dropped to $85,000,000 in April.
The Federal Reserve System during the
period of expansion and speculation, followed
by contraction and depression, acted as a
moderator and shock absorber, checking the
rate of expansion in 1920, yet continuing to
issue notes and to grant credits required by
the business of the country, and later preventing the occurrence of an acute crisis by
making gradual liquidation possible.
The danger of economic collapse has now
definitely passed. The earning assets of the
Reserve Banks and Federal Reserve note circulation are back to the level of 1919, while
gold reserves have risen to the highest point
on record. It is to be expected that after the
stress and strife of the past two years an era
of growing business and increasing prosperity
is not far distant.
The experience of the last two years has
clearly demonstrated that the Federal Reserve
System can stand up under a terrific strain,
that it can moderate the impact of economic
forces and make possible a transition from a
period of reckless expansion to one of liquidation without a disastrous crash. At the same
time recent events emphasize the fact that the
Federal Reserve System can neither produce
nor neutralize economic forces, but can only
endeavor to moderate their ruthless effects on
the economic fabric of the country.
EARNINGS OF THE FEDERAL RESERVE BANKS.
Earnings of Federal Reserve Banks depend
largely on the volume of their discounts for
member banks and on the discount rates
charged. The discount rates are determined
by the banks, with the approval of the Federal
Reserve Board, in accordance with prevailing
credit conditions and the consequent credit
policy, while the volume of operations of the
Federal Reserve Banks depends on the magnitude of the demand for accommodation by the
member banks and the amount of credit
available to satisfy this demand. The amounts
earned by the Reserve Banks are thus dependent primarily on member-bank requirements
and, to a iess degree, on Federal Reserve
Board policy. There is, therefore, clearly no
justification for discussing the earnings of
Federal Reserve Banks in comparison with the
earnings of institutions serving private interests. These earnings should be considered in
relation to the available funds at the disposal
of the Federal Reserve Banks. The chart on
page 673 shows net earnings of the banks in
1920 related to daily average paid-in capital,
EARNING ASSETS, FEDERAL RESERVE NOTE CIRCULATION
AND CASH RESERVES OF FEDERAL RESERVE BANKS
to
ALSO
IMPORTS AND EXPORTS OF MERCHANDISE AND WHOLESALE PRICE INDEX
BILLIONS
OF
DOLLARS
LEGEND
EARNING ASSETS
ER.NOTE CIRCULATION
CASH RESERVES
WHOLESALE PRICE INDEX
(Average Price for 1913lMPORTS
EXCESS EXPORTS
I
%
w
JUNE, I92i.
673
FEDERAL, EESERVE BTJLL&TIH.
surplus, members' reserve deposits, and Federal
Reserve note circulation.
On the basis of capital alone the earnings
were 158.4 per cent; on the basis of capital
and surplus, 02.9 per cent. But these rates of
return are practically meaningless, for the
Eeserve Banks have at their disposal much
larger funds on which they pay no interest and
which practically can not be withdrawn,
namely, the reserve deposits of the member
banks. These deposits, amounting on the
average to $1,835,000,000 in 1920, represent
the lawful reserves of the member banks and
may not be reduced, except as the member
banks' own deposits decline. When these
the note issues. As related to the notes, net
earnings of the Reserve Banks in 1920 constituted 4.7 per cent. When all the banks' loanable
funds—capital, surplus, reserve deposits, and
notes—are added, it is seen that their earnings constitute but 2:9 per cent of the total.
Recognizing the public character of the
Federal Reserve Banks, Congress inserted in
the Federal Reserve Act a provision by which
net earnings of the Reserve Banks in excess of
6 per cent are turned over to the Government
as a franchise tax. Since Reserve Bank
earnings are augmented by an increase in
discount rates, and since these rates are determined by public policy, it is but fitting that
NET EARNINGS OF FEDERAL RESERVE BANKS IN 1920
RELATED TO
DAILY AVERAGE PAID-IN CAPITAL, SURPLUS, MEMBERS RESERVE DEPOSITS
AND FEDERAL RESERVE NOTE CIRCULATION
O
deposits are added to the capital and surplus,
the rate of return of the Reserve Banks on
their operating funds is but 7 per cent.
But Federal Reserve Banks have another
source of loanable funds, namely, Federal
Reserve notes, which are obligations of the
United States Government, and are issued to
the Federal Reserve Banks against gold or
eligible commercial paper, with the limitation
that the Reserve Banks must keep 40 per cent
in gold against their notes in circulation. The
franchise tax paid by the banks may be considered as a return to the Government for
lending its credit to the banks by guaranteeing
the earnings above a moderate return on the
capital invested be turned over to the Government, and that is what is done. In 1920
$60,000,000 were paid by the Reserve Banks
to the Treasury as franchise tax. The banks
are permitted by law to accumulate a surplus
equal to their subscribed capital, and after that
is done to set aside 10 per cent of their earnings
above 6 per cent as a further surplus, but the
entire surplus in the final analysis belongs to
the Government, as in case of liquidation
member banks may receive only the amount
of their contribution to the capital stock of the
Reserve Bank and accrued dividends.
674
FEDERAL RESERVE BULLETIN.
GERMAN REPARATIONS.
Below is given the text of the protocol of the
Reparations Commission, stating the terms of
the reparations settlement between Germany
and the Allied Governments. The protocol
is published in the form in which it was furnished to the Federal Reserve Board by the
French High Commission.
PROTOCOL OF THE REPARATIONS COMMISSION.
The Reparations Commission has, in accordance with article 232 of the Treaty of Versailles,
proceeded to define the time and manner for
securing and discharging the entire obligation
of Germany for reparation under articles 231,
232, and 233 of the treaty, as follows:
This determination is without prejudice to
the duty of Germany to make restitution
under article 238 or to other obligations under
the treaty.
(1) Germany will perform in the manner
laid down in this schedule her obligation to
pay the total fixed in accordance with articles
231, 232, and 233 of the Treaty of Versailles
by the commission, viz, " 132,000,000,000 gold
marks, less (a) the amount already paid on
account of reparation; (&) sums which may
from time to time be credited to Germany in
respect of State properties in ceded territory,
etc.; and (c) any sums received from other
enemy or ex-enemy powers in respect of which
the commission may decide that credit should
be given to Germany, plus the amount of the
Belgian debt to the Allies, the amounts of these
deductions and additions to be determined
later by the commission."
(2) Germany shall create and deliver to the
commission in substitution for bonds already
delivered or deliverable under paragraph 12c
of Annex 2, Part VIII, Treaty of Versailles,
bonds hereafter described.
(a) Bonds for the amount of 12,000,000,000
gold marks. These bonds shall be created and
delivered at the latest on July 1, 1921. There
shall be an annual payment from funds to be
provided by Germany as prescribed in this
schedule in each year from May 1, 1921, equal
in amount to 6 per cent of the nominal value
of the issued bonds, out of which there shall
be paid interest at 5 per cent per annum
payable half yearly on tne bonds outstanding
at any time, and the balance to a sinking fund
for redemption of bonds by annual drawings at
par. These bonds are hereinafter referred to
as bonds of Series A.
(6) Bonds for a further amount of 38,000,000,000 gold marks. These bonds shall be
JUNE, 1921.
created and delivered at the latest on November 1, 1921. There shall be an annual payment
from funds to be provided by Germany as prescribed in this schedule in each year from
November 1, 1921, equal in amount to 6 per
cent of the nominal value of the issued bonds,
out of which there shall be paid interest at 5
per cent per annum, payable half yearly, on the
bonds outstanding at any time and the balance
to a sinking fund for the redemption of the
bonds by annual drawings at par. These bonds
are hereinafter referred to as bonds of Series B.
(c) Bonds for 82,000,000,000 gold marks,
subject to such subsequent adjustment by
creation or cancellation of bonds as may be
required under the first paragraph. These
bonds shall be created and delivered to the
Reparations Commission without coupons attached at the latest on November 1, 1921.
They shall be issued by the commission as and
when it is satisfied that the payments which
Germany is required to make in pursuance of
this schedule are sufficient to provide for the
payment of interest and sinking fund on such
bonds. There shall be an annual payment
from funds to be provided by Germany as
prescribed in this schedule in each year from
the date of issue by the Reparations Commission equal in amount to 6 per cent of the nominal value of the issued bonds, out of which shall
be paid interest at 5 per cent per annum payable half yearly on the bonds outstanding at
any time and the balance to a sinking fund for
redemption of the bonds by annual drawings
at par. The German Government shall supply
to the commission coupon sheets for such
bonds as and when issued by the commission.
These bonds are hereinafter referred to as bonds
of Series C.
(3) The bonds provided for in article 2 shall
be signed by the German Government as
bearer bonds in such form and in such denominations as the commission shall prescribe for
the purpose of making them marketable, and
shall be free of all German taxes and charges of
every description, present or future.
Subject to the provisions of articles 248 and
251, Treaty of Versailles, these bonds shall be
secured on the whole assets and revenues of the
German Empire and the German States, and
in particular on the assets and revenues specified in article 7 of this schedule. The service
of bonds A, B, and C shall be a first, second,
and third charge, respectively, on said assets
and revenues, and shall be met by payments
to be made by Germany under this schedule.
(4) Germany shall pay in each year until the
redemption of bonds provided for in article 2
by means of a sinking fund attached thereto:
"(1) The sum of 2,000,000,000 gold marks;
JUNE, 1921.
FEDERAL, RESERVE BULLETIN.
(2) (a) a sum equivalent to 25 per cent of the
value of her exports in each period of twelve
months, starting from May 1, 1921, as determined by the commission; or (6) alternatively,
an equivalent amount as fixed in accordance
with any other index proposed byJGermany
and accepted by the commission; (3) a further
sum equivalent to 1 per cent of the value of
her exports, as above defined, or, alternatively,
an equivalent amount fixed as provided in paragraph b above: Provided always, That when
Germany shall have discharged her obligations
under this schedule, other than her liability in
respect of outstanding bonds, the amount to
be paid in each year under this paragraph shall
be reduced to the amount required in that
year to meet the interest and sinking fund on
the bonds then outstanding."
Subject to the provisions of article 5, the
payments to be made in respect of paragraph
1 above shall be made quarterly on or before
January 15, April 15, July 15, and October 15,
each year, and payments in respect of paragraphs 2 and 3 above shall be made quarterly
on or before February 15, May 15, August 15,
and November 15 and calculated on the basis
of exports in the last quarter but one preceding that quarter, the first payment to be made
on or before November 15, 1921, to be calculated on the basis of exports in the three
months ending July 31, 1921.
(5) Germany shall pay within twenty-five
days from this notification 1,000,000,000 gold
marks in gold or approved foreign currencies
or approved foreign bills or in drafts at three
months on the German Treasury, indorsed by
approved German banks and payable in
pounds sterling in London, in francs in Paris,
in dollars in New York, or any currency in any
other place designated by the commission.
These payments will be treated as the two first
quarterly instalments of payments provided
for in article 4, paragraph 1.
(6) The commission will within twenty-five
days from this notification, in accordance with
paragraph 12A, Annex 2, of the treaty as
amended, establish a special subcommission to
be called the Committee on Guarantees. The
Committee on Guarantees will consist of representatives of the Allied Powers now represented on the Reparations Commission, including a representative of the United States in
the event of that Government desiring to
make an appointment. The committee shall
comprise not more than three representatives
of nationals of other Powers whenever it shall
appear to the commission that a sufficient portion of the bonds to be issued under this schedule is held by nationals of such Powers to
675
justify their representation on the Committee
on Guarantees.
(7) The Committee on Guarantees is charged
with the duty of securing the application of
articles 241 and 248 of the Treaty of Versailles.
It shall supervise the application to the
service of the bonds provided for in article 2
of the funds assigned as security for the payments to be made by Germany under paragraph
4. The funds to be assigned shall be:
1
(a) The proceeds of all German maritime and
land customs and duties, and in particular the
proceeds of all import and export duties; (b)
proceeds of a levy of 25 per cent on the value
of all exports from Germany except those exports upon which a levy of not less than 25 per
cent is applied under legislation referred to in
article 9; (c) the proceeas of such direct or indirect taxes or any other funds as may be proposed by the German Government and accepted by the Committee on Guarantees in
addition to, or in substitution for, the funds
specified in a or 6 above.77
The assigned funds shall be paid to the accounts to be opened in the name of the committee and supervised by it in gold or in foreign
currencies approved by the committee. The
equivalent of the 25 per cent levy referred to in
paragraph b shall be paid in German currency
by the German Government to the exporter.
The German Government shall notify to the
Committee on Guarantees any proposed action
which may tend to diminish the proceeds of any
of the assigned funds and shall, if the committee
demands it, substitute some other approved
funds.
The Committee on Guarantees shall be
charged further with the duty of conducting
on behalf of the commission the examination
provided for in paragraph 126 of Annex 2 to
Part VIII, of the Treaty of Versailles, and of
verifying on behalf of the commission and, if
necessary, of correcting the amount declared
by the German Government as the value of
German exports for the purpose of calculation
of the sum payable in each year or quarter
under Article IV, paragraph 2, and the amounts
of the funds assigned under this article to the
service of the bonds. The committee shall be
entitled to take such measures as it may deen~
necessary for the proper discharge of its duties
The Committee on Guarantees is not author
ized to interfere in the German administration
(8) In accordance with paragraph 19, clause
2 of Annex 2, as amended, Germany shall or
demand, subject to prior approval oi the commission, provide such material and labor as
any of the Allied Powers may require toward
restoration of the devastated areas of that
676
FEDERAL RESERVE BULLETIN.
Power, or enable any Allied Power to proceed
with the restoration or the development of its
industrial or economic life. The value of
such material and labor shall be determined
in each case by a valuer appointed by Germany and an agreement, by a referee nominated by the commission. This provision as
to valuation does not apply to deliveries under
Annexes 3, 4, 5, and 6, Part VIII, of the
treaty.
(9) Germany shall take every necessary
measure of legislative and administrative
action to facilitate the operation of the German
Reparation (Recovery) Act of 1921 in force in
the United Kingdom and of any similar legislation enacted by any Allied Power so long as
such legislation remains in force.
The payments effected by the operation of
such legislation shall be credited to Germany
on account of payments to be made by her
under Article IV, clause 2. The equivalent in
German currency shall be paid by the German
Government to the exporter.
(10) Payments for all services rendered, all
deliveries in kind, and all receipts under article
9 shall be made to the Reparations Commission
by the Allied Power receiving the same in cash
or current coupons within one month of the
receipt thereof and shall be credited to Germany on account of payments to be made by
her under article 4.
(11) The sums payable under article 4, clause
3, and any surplus of receipts by the commission under article 4, clauses 1 and 2, in each
year not required for payment of interest and
sinking fund on bonds outstanding in that year,
shall be accumulated and applied so far as they
will extend, at such times as the commission
may think fit, by the commission in paying
simple interest not exceeding 2\ per cent per
annum from May 1, 1921, to May 1, 1926, and
thereafter at a rate not exceeding 5 per cent on
the balance of the debt not covered by bonds
then issued. The interest on such balance of
the debt shall not be cumulative. No interest
therefor shall be payable otherwise than as provided in this paragraph.
(12) The present schedule does not modify
the provisions for securing the execution of the
Treaty of Versailles which are applicable to the
stipulations of the present schedule.
JUNE, 1921.
THE GOLD SITUATION.
Gold holdings and gold movements are of
particular interest at the present time in view
of the large importation of gold into this
country and the changes in the main currents
of the international gold movements. The
following discussion deals primarily with the
most important developments since the time
of the armistice.
GOLD RESERVES.
Distribution of gold reserves prior to the
war, at the time of the armistice, and at the
present time is shown in the table below. The
figures refer to the gold holdings of the central
banks and of various Government agencies.
Figures showing percentage distribution are
also given:
GOLD RESERVES OF THE PRINCIPAL COUNTRIES BEFORE
THE WAR, AT THE TIME OF THE ARMISTICE, AND AT
THE LATEST AVAILABLE DATE.
[In thousands of dollars.]
Percentage
distribution.
Gold holdings.
1913
United States
United Kingdom...
France
Italy
Belgium
Germany
Austria-Hungary...
Sweden
Norway
Denmark
Netherlands
Spain
Switzerland
Canada
Argentina
Japan
India
Java
Rumania
Total
1918
1921
691,514 2,245,720 2,529,571
523,632
170,245
763,350
664,017
678,856
688,309
243,566
288,103
236,526
59,131
51,447
538,861
260,019
278,687
251,421
53,074
13
27,372
76,532
75,533
12,846
32,691
39,474
19,666
52,159
60,989
60,898
277,155
245,612
92,490
430,072
479,198
32,801
80,041
104,895
115,375
83,381
121,261
224,989
450,057
269,628
64,963
558,819
225,821
72,780
117,575
63,842
10,027
51,600
90,483
29,242
2
329
1913
1918
1921
21.74
5.35
21.34
9.06
1.86
8.76
7.90
.86
.40
.61
1.91
2.91
1.03
3.63
7.07
2.04
2.29
.32
.92
37.74
8.80
11.16
4.09
37.00
11.16
10.07
3.46
.75
3.80
9.06
.89
1.29
.55
.88
4.66
7.24
1.34
2.04
4.53
3.79
1.07
.87
1.10
.57
.89
3.59
7.01
1.53
1.22
6.59
8.17
1.72
1.32
.05
3,181,406 5,949,674 6,835,580 100-OOj 100.00 100.00
The first thing to be noted is the great
increase in the gold reserves between 1913
and 1918, and the further increase since the
armistice. These increases represent to a
large extent the concentration and impounding of gold by central banks and Governments
after the outbreak of the war for the purpose
JUNE., 1921.
677
FEDERAL, RESERVE BULLETIN.
of supporting the credit of the Governments in the main gold previously held in private
and of making international payments in gold hands and later concentrated in central reserve
when deemed advisable.
institutions, where it is at the disposal of the
Between 1913 and 1918 increases in theGovernment. In the case of the United
central gold reserves are shown for all coun- States the increase of about $1,500,000,000 in
tries, except for Austria-Hungary, a large part gold reserves represents in part the concenof whose gold was transferred to Germany; tration in the Federal Reserve Banks of gold
for France and Italy, both of which trans- formerly held by commercial banks and by the
ferred portions of their gold abroad for the public and in part additions to the gold
establishment of foreign credits in connection reserves of imported gold. In 1913 the gold
with the purchase of war supplies; for Ru- reserves of the United States constituted
mania, nearly all of whose gold reserve was about 22 per cent of the total for the countransferred for safe-keeping to Russia/ and for tries included in the tabulation. (See chart
British India. Belgium's gold reserve in 1918 below.) In 1918 it was 38 per cent, and in 1921
CENTRAL GOLD RESERVES OF PRINCIPAL COUNTRIES
(PERCENTAGE DISTRIBUTION)
END OF 1918
ABOUT APRIL, 1921
END OF 1913
TOTAL
3,181
MILLIONS
TOTAL
TOTAL
5,950 MILLIONS
6,836 MILLIONS
is not shown for the reason that it had just 37 per cent. The point of immediate interest
been restored and the figures were not im- is that the increase of gold reserves in the
United States since the armistice was about
mediately made public.
The largest increases are shown for the$280,000,000. In spite of the fact that it has
United States, United Kingdom, Germany, been practically the only country from which
Netherlands, Spain, and Japan. The Scandi- and into which gold has moved without
navian countries also show large relative in- restriction, the United States has about held
creases, although the absolute amounts are its own in its proportion of the world's gold
not so great as those for the countries just reserves. Absolute increases in gold reserves
mentioned. In the case of Japan, of Spain, since the armistice are shown also by the
and of the Scandinavian countries the in-United Kingdom, France, Norway, Spain,
creases in gold reserves represent payments by Switzerland, Argentina, Japan, India, and
belligerents for necessary war supplies. For Java.
The large increases since 1918 in the total gold
the United Kingdom and for Germany the
large increases shown in the reserves represent reserves of the countries included are due in
part to the additions of new gold produced; in
part to gold that had been previously kept in
i See FEDEEAL RESERVE BULLETIN for December, 1920, p . 1296.
678
FEDERAL RESERVE BULLETIN.
Indian hoards, but mainly to the absorption
by these countries of a large part of the Russian
State Bank goldreserve, which in 1913 amounted
to $787,000,000/but has since dwindled to an
unknown but certainly much smaller amount.
Further reference to the Russian gold will be
made in discussing the gold movement.1
GOLD PRODUCTION.
Gold production by countries for each year
from 1910 to 1920 is shown in the following
table. 1920 figures are estimates made by the
London Statist; figures for the earlier years
are estimates of the United States mint:
JUNE, 1921.
reason gold can not command a premium in
this country, nor can it command a premium
anywhere in the world much greater or much
less than would correspond to the degree of depreciation of the respective currencies in terms
of dollars. The American index number of wholesale prices in so far as it is an accurate index of
the general price level is, therefore, a measure
of the depreciation of gold, and to this depreciation is largely due the decrease in gold production.
In this country gold production fell off from
$101,000,000 in 1915 to $51,000,000 in 1920;
in the Transvaal it fell off from $192,000,000 in
1916 to $169,000,000 in 1920; in Western Aus-
GOLD PRODUCTION OF THE WORLD.
[In thousands of dollars.]
Country.
United States
Canada
Russia
South Africa:
Transvaal
Rhodesia
Australasia:
Western Australia
Other Australia
British India
All other
Total
1910
1911
1912
1913
1914
96,269
10,206
35,580
96,890
9,762
32,152
93,451
12,649
22,199
88,884
16,599
26,508
94,532
15,983
28,586
191,539 /\ 188,293
14,227
181,885
14,275
26,515
60,184 \f 27,994
11,056
11,054
69,752
60,359
466,136
j- 175,190
|
65,471
10,718
61,826
455,260
461,940
1
1916
1917
1918
1919
101,036
18,937
28,586
92,590
19,235
22,500
83,751
15,200
18,000
68,647
14,688
12,000
60,333
15,859
12,000
51,098
16,011
4,867
173,560
17,664
188,033
18,915
192,183
19,232
186,503
17,245
174,023
13,051
172,231
12,267
168,638
11,427
27,166
25,947
12,178
66,499
25,488
22,081
11,378
49,806
25,015
24,383
11,523
54,038
21,941
18,535
11,209
56,752
20,131
15,814
10,757
56,189
18,119
11,150
10,028
59,219
14,967
11,145
10,486
55,878
12,531
11,870
9,194
52,315
459,941
439,078
470,466
454,177
423,590
380,925
365,166
337,951
19201
Estimates of the London Statist, Feb. 19,1921, p . 305.
Since 1915, when gold production amounted
to $470,000,000, it has been steadily decreasing,
and in 1920 was estimated at only $338,000,000.
This diminution is due partly to disorganized
conditions in Russia, but chiefly to the fact
that, while costs of production have been soaring in harmony with the general price level, the
price of gold has remained fixed by mint acts.
It is true that in London, the principal gold
market of the world, gold is not sold at the
mint price of about 85 shillings per ounce fine,
but at a figure reflecting the rate of exchange
on New York; namely, about 105 or more shillings per ounce during the latter part of last
year. The price of gold in the London market
has thus been adjusted to the depreciation of
British currency, but only to the extent that
British currency has lost a larger proportion of
its purchasing power than has American currency. The dollar has remained at par with
gold, and is interchangeable with it; for this
i See also FEDERAL KESERVE BULLETIN for December, 1920, p . 1296.
1915
tralia, from $27,000,000 in 1913 to $13,000,000
in 1920; in other portions of Australia, from
$26,000,000 in 1913 to $12,000,000 in 1920.
It has been stated that production of gold in
recent years is not much in excess of the needs
of industry. In the United States alone some
$75,000,000 are consumed by the jewelry and
other trades; probably the rest of the world
absorbs most of the remainder.
GOLD MOVEMENT.
A table presented below shows the imports
and exports of gold since the end of November,
1918, in two periods—first from November,
1918, through August, 1920, the period when
gold was moving largely from the United
States, although from April to August, 1920,
the movement was son ewhat irregular; and,
secondly, from September, 1920, to April, 1921,
the period of the most recent gold movement to
the United States. A chart on page 680 shows
the movement graphically.
679
FEDERAL, RESERVE BULLETIN.
JUNE, 1921.
GOLD IMPORTS INTO AND EXPORTS FROM THE UNITED STATES.
[In thousands of dollars.]
Total Nov. 1, 1918-Apr. 30, 1921.
Country.
Nov. 1, 1918-Aug. 31, 1920.
Excess of—
Excess of—
Imports. Exports.
87,436
14,708
3 457
31,516
350 414
100,652
2'888
2,905
11 945
2,427
14,749
2,745
1 292
3 2,043
11,294
Total.
Excess imports
Excess exports
743,522
7, Oil
44 656
2 208
4 292
34,883
4 153
15
29 778
1
2 190
12,105
16
3,144
33 250
146,555
5,968
22,055
12 351
67,397
41,053
10,893
19,510
72,104
195 414
83,283
14,693
31,515
348 224
88,487
2 872
26,321
239
8,781
21,747
4,292
13,136
699,759
595,284
43,763
21,305
144,128
19,310
11,059
55,354
29,759
10,893
12,499
27,448
193,206
551,521
Imports. Exports.
Imports. Exports.
1,744
1,162
4,153
15
29,778
1,147
1
84,630
76,158
2,260
1,495
8 328
180
3,623
718
1
6,440
40,210
2,751
10,167
239,867
For the period as a whole, the United States
imported $744,000,000 of gold and exported
$700,000,000, so that the net addition to the
country's stock of gold is $44,000,000. It
should be noted that this is a comparatively
small amount; that the gains in gold since the
recent gold movement set in have not much
more than offset the losses of gold between
the removal of the gold embargo in June,
1919, and September, 1920. It should further
be noted that imports of gold have come
from one group of countries, while exports
have gone to another group. From the
armistice to August, 1920, $375,000,000 of
gold (net) left the United States, going largely
to Japan, Argentina, China, British India,
Hongkong, Spain and Mexico. From September, 1920, to the present time, $419,000,000
(net) was imported, largely from England,
France, Sweden and Canada.
In many respects, the two movements are
of a different character. The outflow of gold
during the first period was in payment of
accumulated balances to South America and
the Orient, which owing to the embargo on
gold could not be paid during the war. Much
of this outflow did not represent a change in
the ownership of gold after the armistice, because most of the gold was held by foreign
interests in America awaiting the removal of
the embargo. Thus, Argentina had a credit
of about $80,000,000 in this country against
which notes had been issued in Argentina and
which was used after the war to adjust trade
Excess of—
Imports. Exports.
Imports. Exports.
France
Netherlands..
Spain
Sweden
England
Canada.
Nicaragua..
Salvador
Mexico
Argentina
Colombia
Uruguay
Venezuela
China
British India...
Straits Settlements.
Dutch East Tndies..
Hongkong
Japan
New Zealand
All other countries..
Sept. 1, 1920-Apr. 30, 1921.
2,105
9,483
17
3,144
" 28,127
146,555
5,969
22,055
12,350
59,396
40,804
10,893
19,430
67,030
132 856
20,755
614,916
2,409
29,778
1
82,525
66,675
2,243
2,75i
155,341
1,649
19,799
146,375
2,346
22,055
11 632
59,395
40,804
10,893
12,990
26,820
132,856
Imports. Exports.
85,692
13,546
3 457
31,516
265,784
24,493
86
2,681
628
1,410
3,617
2,248
11,126
2,745
628
5,124
573
12,042
11,294
571
1,410
2,248
11,126
2,745
4,042
11,045
80
491
992
1,542
23,725
5,074
62,557
10,588
530,390
503,655
84,843
1 507
573
249
8,666
4,446
2 208
1,542
24,717
375,049
85,692
13,546
3 457
31,516
265' 698
21,812
628
481,296
418,812
60 349
62,484
balances. Japan had large gold credits in
this country, and the Netherlands had " earmarked" gold which was shipped out after the
movement of gold was reestablished. The
gold movement from the United States after
the removal of the embargo was thus the
cumulative result of adverse trade balances
incurred during the war, or somewhat in the
nature of the withdrawal of deposits.
The more recent movement of gold to the
United States is different in character. It is
the beginning of an effort on the part of
European countries to reduce their indebtedness to the United States. This indebtedness
is the equivalent of commodities imported
from America during and since the war, but
only the balances built up since the armistice
are an active factor in the present situation,
inasmuch as wartime supplies were purchased
almost entirely on Government account and
financed by the Treasury of the United States.
The repayment last fall by England and France
of the $500,000,000 loan of 1915 is the one
important settlement of obligations incurred
prior to 1918.
Of gold coming to the United States in recent
months, a part is new gold produced in South
Africa and sold in the London market, an almost
equal part is gold coming from India via London,
and another part is gold exported from Russia to
France and Sweden in payment for goods or for
the establishment of credits, the latter countries
shipping equivalent amounts to theUnitedStates
in part payment for their own purchases.
680
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
UNITED STATES GOLD IMPORTS AND EXPORTS
NOVEMBER 1918 TO MAY 1921
BABS ABOVE BASE LINE BEPRESENT IMPORTS
BARS BELOW BASE LINE REPRESENT EXPORTS
BLACK PORTIONS REPRESENT EXCESS IMPORTS OR EXPORTS
S
a
C 41 P
^i
x 3 I ^ 3 M0NTH
JUNE, 1921.
Since the spring of 1919 the British Government, in order to maintain London's position
as the principal gold market of the world, has
permitted the reexport of new gold sold in
London. What actually takes place is that
the South African producers send smelted gold
to London, this gold being only about 60 per
cent fine. In London, the agents of the South
African producers have an establishment
where they refine the gold to 999/1000 of purity,
whereupon it is placed on the auction block
and is bid in by the agents at the dollar exchange rate, with allowance for expenses of
shipment and commissions. The gold then
goes to New York, where local agents of the
producers dispose of the gold through a member
bank to the Federal Reserve Bank. The final
result of these transactions is that the South
African producers receive dollar exchange to
the amount of $20.67 for every ounce of pure
gold shipped, less the freight from South Africa
to London, the London commission, the expenses of shipment from London to New York,
and the New York commission. If the trade
in London requires gold, or if any other country
wishes to purchase gold, it must bid above the
level of the New York exchange. As a consequence, there have recently been almost no
other bids, except for small amounts for use
in the arts, because no country can afford to
offer more for gold than its price at the dollar
rate. The daily quotation of gold in London
is in fact practically determined by the dollar
exchange rate. A comparison of the two rates
shows that frequently there is a slight margin
of less than one-half per cent between the
premium on the dollar and the premium on
gold. This margin is sufficient to pay the cost
of transportation, insurance, and commissions
from London to New York. These charges,
not allowing for interest or commissions, are
estimated at approximately two-tenths of 1
per cent.
It is evident, therefore, that the shipment of
South African gold through London to the
United States is due largely to the fact that
the United States is the only important free
gold market in the world, and also to the other
fact, closely related to the first, that dollar
exchange is everywhere eagerly desired. The
South African producers, in obtaining dollar
exchange for their gold, receive the best international currency in existence at the present
time, because they can dispose of this exchange
with ease either in London or in South Africa
or in any other money market.
The gold coming from France and Sweden is
now known to be in large part gold which
originated in Russia. According to the Mon-
681
FEDERAL, RESERVE BULLETIN.
tagu Foreign Exchange Review for May 5,
1921, Mr. Wollroth, the director of the Swedish
mint, has stated that "since last January the
Swedish mint has received and smelted about
70 tons of Russian gold, providing it with a
regulation stamp of purity after manipulation.
Most of this gold was in bars which had been
already partly smelted in Russia, but remained
of imperfect alloy. The Swedish mint stamp
after resmelting gave it its market value in
America, whither most of it was reexported.
Seventy tons of gold, if 900 fine, represents
2,057,530 ounces, or about £10,000,000 at 104
shillings per ounce." This accounts for about
$40,000,000 of gold received indirectly from
Russia, and there is little doubt that not less
than $60,000,000 of other gold from Russia has
found its way to the United States through
France, Switzerland, and other countries.
Whether the present gold movement may
be expected to continue is a question of great
importance. In so far as the Russian gold is
concerned, the supply may be nearly at an end,
and no great additions to the American stock
of the precious metal may be expected from
that source. Neither is it likely that much of
the gold held as central reserves by European
countries will be released for export to America. On the other hand, so long as present
exchange conditions prevail, and that means
so long as the balances of international payments continue to be favorable to America,
there is every reason to believe that most of
the new gold produced in the world will find
its way to the United States.
PRACTICE UNDER COMMERCIAL LETTERS
OF CREDIT.1
INTRODUCTION.
The following study is the third of a series
dealing with the methods of financing foreign
trade. Previous articles, appearing in the
FEDERAL RESERVE BULLETIN for February
and April, 1921, have discussed such phases of
the commercial letter of credit as its legal
principles, its use by American banks, and also
the various forms it assumes. These studies
have analyzed the subject from the standpoint
of the banker, while the following article is an
exposition of commercial credits from the view
of the American exporter and importer. The
purpose is to present typical opinions on
unsettled questions relating to commercial
credit practice, in order to develop certain
i Prepared under the direction of George W. Edwards, Division of
Analysis and Research.
682
FEDERAL, RESERVE BULLETIN.
principles which may find general acceptance
among parties interested in the financing of
foreign trade. The material has been gathered partly by direct personal interview, but
mainly tKrough questionnaires addressed to
leading commercial houses. In this task, the
Division of Analysis and Research secured the
cooperation of such organizations as the
National Foreign Trade Council, New York
Merchants Association, National Association
of Manufacturers, Philadelphia Commercial
Museum, Chamber of Commerce of the State
of New York, and the United States Chamber
of Commerce. The questionnaire has sought
to educe replies on such subjects as the meaning of the letter of credit, the use of the document by commercial houses, and the general
policy to be followed in further developing
American credits. The data thus assembled are
presented in the following general form: (1)
Statement of the question; (2) tabulation of
the replies wherever possible; (3) excerpts
from answers presenting typical viewpoints;
(4) interpretation of these answers.
JUNE, 1921.
conditions can not be a letter of credit, no matter what may
be printed as its name on the instrument itself. There is
no such thing as an unconfirmed and/or revocable letter of
credit. If the bank wished to issue a document which
may be described as an l Authority to purchase/ it should
not name it a letter of credit, because an 'Authority to
purchase' can by no stretch of the imagination be expanded into a letter of credit.''
The purpose underlying question I was to
secure an expression of opinion on the correct
classification of letters of credit. This topic
has not a mere academic interest, but possesses
an important legal significance, for it aifects
directly the liability of the various parties to
a letter of credit. Answers (a) and (b) both
hold the view that the terms confirmed and
irrevocable are synonymous, and that no distinction exists between these two types of
credits. Letters of credit would thus be grouped
as (1) confirmed or irrevocable, (2) unconfirmed or revocable. On the other hand,
answer (c) discriminates between the words
confirmed and irrevocable, and this view
results in the threefold classification of (1)
confirmed—irrevocable, (2) unconfirmed—irrevocable,, and (3) unconfirmed—revocable. The
opinions of American banks were sought in a
I. MEANING OF LETTER OF CREDIT.
previous questionnaire relative to this subject,
but
a presentation of their replies has been
1.
deferred until this issue of the BULLETIN, in
Question. Do you draw a distinction between a "con- order to permit a more detailed treatment.
firmed" and "irrevocable" and an "unconfirmed" and The results were as follows:
"revocable" letter of credit?
Answers. No distinction drawn.—(a)k< We have found that
these terms work out to be practically interchangeable.
Perhaps the British banks use confirmed and unconfirmed
by preference, whereas it would appear that the American
banks generally designate their credits as revocable and
irrevocable."
(6) "We have not found it necessary to differentiate between a confirmed and irrevocable letter of credit. It is
questionable whether there is actually much distinction
between the two terms. A confirmed letter of credit may
be canceled only by consent of the vendor. When a confirmed letter of credit has been established, the exporter is
assured that funds are available to him, provided he complies with the stipulations of the credit and provided, of
course, he presents documents before date of expiration.
As a further safeguard, however, the irrevocable letter
of credit was devised during the war, and while it met with
considerable popularity by manufacturers who were just
extending their activities into the export field, it is
doubtful whether it has really proved more effective."
Distinction drawn.—(c) "An irrevocable credit may not
have been confirmed by the bank here, but is valid to
secure payment by the bank authorizing the credit. If
the bank here has not confirmed it, it is optional with them
whether they would discount drafts drawn under this
credit. We consider an unconfirmed credit to be simply
a letter of advice, or a notice from the correspondent bank
here that such a credit has been issued, but as they do not
confirm it, they do not therefore guarantee its payment."
Revocable, unconfirmed form not letter of credit.—(d)
"Inasmuch as a letter of credit is an unqualified obligation of the issuer to make rjayment under certain terms,
provided they are fulfilled within a definite period of time,
every letter of credit must be a confirmed and an irrevocable
credit. Any document which does not meet both of these
Question: Do you issue to a beneficiary an export letter
of credit which is irrevocable by the foreign bank but still
unconfirmed by you?
Answers by banks:
(a) "We issue to beneficiaries of export letters of credit
a letter of advice, stating that the foreign bank has established its irrevocable letter of credit and that we are prepared to negotiate thereunder, but that we, ourselves,
attach no responsibility in doing so."
(b) "An irrevocable export letter of credit established
with us by a foreign bank would simply be transmitted by
us to the beneficiary, unless our correspondent particularly instructed us to ' confirm' the credit."
(c) "Our procedure in connection with export letters of
credit advised to us is merely to pass the advice or actual
incoming letter of credit on to the exporter. We would
not confirm a letter of credit revocable by a foreign bank.''
(d) "We do issue export letters of credit which are irrevocable by the foreign bank, but unconfirmed by us. We
simply advise the beneficiary^ of the terms of the credit as
issued, expressing our willingness to negotiate drafts
within the terms.''
(e) "Such credits are usually issued by the foreign
bank and only advised by us. n
Question: When you are requested to notify a beneficiary
that a foreign bank has opened an irrevocable letter of
credit, is it also regarded as irrevocable by your bank, or
must you add your confirmation to the letter of credit?
Answers of banks:
(a) "Such transactions are not our export credits; as
the credit is issued by the foreign bank, we can not confirm it to the beneficiary, but we do not commit ourselves
to do so.''
(6) "In the ordinary course we would simply notify the
beneficiary that an irrevocable credit has been opened in
JUNE, 1921.
FEDERAL, RESERVE BULLETIN.
his favor. This, however, would carry no engagement so
far as we are concerned."
(c) "We only confirm letters of credit opened by a
foreign bank upon request by said bank, otherwise, when
transmitting to the beneficiary the information relative to
the credit, we invariably disclaim any liability thereunder, and emphasize the fact that we merely act as
intermediaries."
(d) "When we are notified by a foreign correspondent
that they have opened an irrevocable letter of credit, we,
of course, regard it as such, being not subject to cancellation, but we do not add our confirmation unless especially requested to do so."
(e) "Unless we are especially requested to confirm such
a credit, we merely pass on the information received from
the foreign bank, adding a clause that it is without a
confirmation on our part."
It is therefore clear that a distinction must
be drawn between an irrevocable and a confirmed letter of credit. The irrevocable letter
of credit is a document in which a foreign bank
promises to honor the drafts of the beneficiary,
provided he complies with certain conditions
stated in the letter, and it is an obligation absolutely binding upon the issuing institution.
This credit may be sent directly by mail to the
exporter, or it may be transmitted by cable to
a correspondent bank, which in turn informs
the favored party of the credit. This report is
conveyed without the assumption of any liability by the informing bank. However, if the
notifier, at the request of the issuer, adds its
guarantee or confirmation to the advice addressed to the beneficiary, it then becomes an
engagement binding upon both banks. In
other words, one credit is irrevocable by the
issuer but unconfirmed by the notifier, and the
other is both irrevocable by the issuer and
further confirmed by the notifier. (FEDERAL
KESERVE BULLETIN, February, 1921, p. 158.)
There remains the third form which is revocable by the issuer and unconfirmed by the
notifier. Regarding this form, answer id) is
quite correct in contending that such notice
does not constitute a true letter of credit, for
the document is the obligation neither of
the issuing nor of the notifying bank, and
hence can not be described as a " credit."
(FEDERAL RESERVE BULLETIN, April, 1921,
pp. 413-414.) This document should be termed
rather a " letter of advice." It serves a definite
trade purpose especially in financing shipments
from agents, affiliated concerns or firms which
of course, would not cancel their obligations.
Most banks do not issue these revocable letters
of advice. (FEDERAL RESERVE BULLETIN,
February, 1921, p. 164.)
683
favor, up to what time is it your understanding that the
issuing bank has the right to cancel?
Answers:
Bank has right to cancel at any time—16.
Bank has right to cancel only before presentation of documents—4.
(a) "Nothing, we judge, would hinder the issuing bank
from effecting immediate cancellation if occasion called
for it."
(b) " I t is our opinion that the bank may cancel a
revocable letter of credit any time prior to the presentation of the documents. It must accept the documents if
cancellation notice has not reached the shipper prior to
the presentation of same."
(c) "Until canceled the American bank can not evade
its responsibility and must make payment upon presentation of proper documents. There is, of course, a further
question of justice and equity. The supplier of the goods,
in good faith and on the strength of the instrument, may
have prepared merchandise which is unsuitable for his
regular trade, although reasonably current for the market
of destination. Until recently some of the more experienced American banks have taken the equity of the
supplier into account and have made payments where
goods have been prepared and were in existence at the
time of the cancellation of the 'so-called' unconfirmed
credit. Latterly, however, this rule of reason has ceased
to be applied and the supplier of goods apparently has
no redress against any one, although he has practically
been led into a trap by the American bank on the strength
of the weak document which it issued."
From the above analysis it is apparent that a
bank has the right to cancel a revocable letter
of credit, but the exact time within which this
privilege may be exercised remains undefined.
As indicated in the Federal Reserve Bulletin
for February, 1921, page 170, the cancellation
order from bank to exporter may possibly be
made effective before any one of the following
successive stages in the financing of a shipment: (1) Completion of manufacture of the
goods; (2) delivery of goods to a carrier as
evidenced by railroad or ocean bills of lading;
(3) presentation of these documents at the
office of the bank which has informed the
beneficiary of the credit; (4) negotiation of
the beneficiary's drafts by this bank.
Although the majority of the replies concede
that banks have the right to cancel a letter of
advice at any time, the more discerning exporters assert that such action may not be taken
after the presentation of shipping documents
at the counter of the bank negotiating their
drafts. Bankers, on the other hand, generally
insist that they may cancel an advice of a
credit at any time before they have actually
negotiated the drafts of the beneficiary. The
equitable view between these divergent contentions recognizes that the exporter has definitely fixed the liability of the issuing bank if
his shipping documents, complying with the
2.
terms of the advice, are tendered to the notifyQuestion: In the case of an unconfirmed credit stating ing bank before the latter has given him either
on its face, "subject to cancellation," issued in your an oral or written notice of the cancellation.
684
FEDERAL, RESERVE BULLETIN.
3.
Question: What in general has been your experience
with unconfirmed revocable credits?
Answers:
Do not use unconfirmed revocable credits
17
Experience with unconfirmed revocable credits satisfactory
8
Experience with unconfirmed revocable credits
unsatisfactory
1
(a) "We have never used unconfirmed or revocable
credits. Our suppliers invariably insist upon a confirmed
credit."
(b) "We will not accept unconfirmed letters of credit
unless the concerns for whom they are issued are of the
highest credit standing."
(c) "We do not accept such documents unless we are
absolutely sure of the knowledge and comprehension of
the bank and of the character and solvency of the buyer
of the goods. They are not letters of credit, but only a
limitation on the amount a bank may be called upon to
negotiate."
(d) "We never had a letter of credit canceled."
(e) "They have, so far as we are concerned, worked precisely as though they were confirmed or irrevocable."
(/) "Good. In one or two cases credits have been
revoked on account of our not being able to make delivery,
but that happened during the w^ar, so that as the buyer
needed the material we were able to prevail upon them to
reopen the credit."
(g) "We refuse to accept unconfirmed or revocable
credits, except where investigation shows the concern or
individual to be of high standing and when credit is voluntarily established by the purchaser. Under such conditions it would hardly be considered good policy to ask
for a confirmation of the credit. When we, ourselves,
ask for the establishment of a letter of credit we always
stipulate that such credits shall be confirmed."
(h) "Only once have our customers ever taken advantage of an unconfirmed credit. About a year ago we
received an order for a carload of goods from an English
house. After shipment arrived at the Atlantic seaboard
the paying bank advised that the credit had been withdrawn, and we were thus obliged to dispose of the shipment
to another client."
From the above replies it is apparent that a
large proportion of commercial houses do not
use unconfirmed credits because of their uncertain nature as described under question 2.
On the other hand, it seems that the experience
of firms which do avail themselves of this form
of credit has been quite satisfactory, due
probably to the fact that such letters are
accepted only from banks and customers of
recognized standing.
4.
Question: In selling drafts drawn against a letter of
credit, do you consider that the buying bank has recourse
to you?
a) On a confirmed credit.
b) On an unconfirmed credit.
c) On an irrevocable credit.
d) On a revocable credit.
Answers:
(a) On a confirmed credit—no, 16; yes, 3.
(6) On an unconfirmed credit—no, 7; yes, 12.
(c) On an irrevocable credit—no, 16; yes, 3.
) On a revocable credit—no, 7; yes, 12.
JUNE, 1921.
(a) "On credits opened in New York, we feel that the
bank discounting our draft has no recourse against us,
whatever form of credit has been opened."
(b) (a) "On a confirmed credit we would make no draft
without stating on its face 'without recourse' "; (6) "we
would endeavor to avoid making any draft but would
insist on payment if the documents were presented before
cancellation"; (c) same as answer to (a); (d) "we can not
reconcile the word 'revocable' with the term 'letter of
credit,' but any draft drawn against an instrument which
was not a letter of credit would undoubtedly carry recourse
to the drawer."
(c) (a) "No. The confirmation of a credit is like the
certification of a check"; (6) "yes. As they have not
confirmed the credit, they have no responsibility"; (c)
' 'yes. As the credit is only irrevocable and not confirmed,
in case of failure of the issuing bank to pay, recourse would
be on us"; (d) "yes. No bank would purchase drafts
drawn on a revocable credit without recourse on the
drawer."
In addition to the question of cancellation of
commercial credits, another mooted problem
between exporters and bankers is the right of
recourse to the party who has drawn a draft
upon the authority of a commercial letter of
credit. The Law of Negotiable Instruments
recognizes fully the right of the drawer of a
draft to place after his name the phrase " without recourse," which relieves him of the liabilities usually attaching to the drawer of the bill.
The exporter who has presented for payment a
draft bearing this expression insists that the
entire business transaction so far as he is concerned is closed, and that the negotiating
banker may not in the future turn to him for
reimbursement. It is therefore quite obvious
that exporters regard with greater favor the
drawing of drafts without recourse than with
recourse to themselves. The question then
arises, What is the recourse to the drawer of
drafts under the various classes of letters of
credit described above ? One view is expressed
in answer (a), which holds that the bank has
absolutely no recourse against the drawer of
the drafts, whether the credit be irrevocable
or revocable, confirmed or unconfirmed.
Answer ;;(6) applies the principle of " without
recourse to the confirmed and to the irrevocable letters of credit, but not to the unconfirmed, revocable form. Answer (c) confines
the right to draw a draft without recourse
solely to the recipient of a confirmed and irrevocable letter of credit. According to the
numerical tabulation presented a,bove, the
exporter believes that confirmed and irrevocable
letters of credit permit the beneficiary to draw
his drafts without recourse to himself, but that
unconfirmed revocable credits admit of recourse
by the bank to the drawer. This middle view
is not generally followed by the banks which,
in their replies to the same question, contend
that the drawer of a bill of exchange is not
FEDERAL, RESEKVE BULLETIN.
JUNE, 1921.
released from his liability. In conclusion, under the Law of Negotiable Instruments, any
bona fide holder has full recourse upon the
drawer of a draft under a letter of credit if the
drawee bank dishonors the bill. Considering
the question not from the strictly legal standpoint but from commercial usage, the drawer
of drafts under a confirmed irrevocable letter
of credit issued by a reputable bank may
safely regard the transaction as closed upon
acceptance by the drawee bank and he would
be liable only in the extreme event of failure
of the accepting bank. (See address of Wilbert
Ward at Eighth National Foreign Trade Convention, May, 1921.)
5.
Question: Have you drawn under "Letters of authorization " (authorities to purchase) and if so, what has been
your experience in connection with their use?
Answers: Have used authorities to purchase—10; have
not used authorities to purchase—16.
(a) '' Such drafts have usually been bought by the issuing bank or its agent and have run on a straight interestcarrying basis."
(6) " Letters of authorization are not credits. They give
no security to the drawer of a draft; merely facilitate the
operation of drawing. We use them only when we know
drafts will be paid."
(c) "Satisfactory only if we would be willing to negotiate similar drafts without a credit; i. e., the A/P is
acceptable only if customer's financial standing is satisfactory.
A shipment of goods in foreign trade may be
financed by the importer either through a letter
of credit or an " authority to purchase." The
former document, as was noted above, vests
the exporter with the right to draw drafts upon
a bank. On the other hand, the authority to
purchase instructs the shipper to draw his bill
upon the importer directly, but assures him
that the draft will be purchased by the notifying bank. From the above replies it may be
observed that the authority to purchase is not
widely used by American merchants. A forthcoming article in the Federal Reserve Bulletin
will present a detailed analysis of this document, which is not well understood by American
banks and commercial houses.
II. USE OP THE LETTER OF CREDIT.
6.
Question: For what classes of transactions have you used
letters of credit?
(a) Please indicate as many classes of import transactions as possible.
(b) Please indicate as many classes of export transactions as possible. In each kind of business indicate all
of the variations occurring; i. e., f.a.s., f.o.b., c. and f.,
c.i.f., also whether the credits have to be available
before ocean documents are obtainable and, if so whether
against warehouse receipts or on a clean basis, or, whatever
685
the terms may be. In case of any unusual transactions,
please illustrate how they were handled.
Answers:
(a) Have used letters of credit in import transactions—10; Have not used letters of credit in import transactions—18.
(b) Have used letters of credit in export transactions to
cover:
Free alongside steamer (f. a. s.)—5.
Free on board (f. o. b.)~8.
Cost and freight (c. and f.)—6.
Cost insurance freight (c. i. f.)—10.
Import transactions.—(a) "Import transactions are
financed by letters of credit furnished by buyers, etc. to
cover first-cost purchases, as well as c. i. f. and c. and^.
transactions. Very seldom is it possible for such credits
to be available in the Far East before documents are
obtainable."
Export transactions; credit established, before sending order
to mill.—(b) "Usually we require letters of credit to be
established before sending of orders to our factories,
because if the goods are once made they are of doubtful
use to others."
Upon delivery of warehouse receipt—(c) "Invariably
f. a. s. New York. In event of abnormal conditions in shipping circles, payment against warehouse receipt."
(d) "During the war in one case the bank made payments under instructions against warehouse receipt but
only because the steamer space was unavailable when
merchandise was ready."
(e) "We have required in the past letters of credit to be
opened against warehouse receipts, especially during unsettled, congested, or embargoed shipping conditions."
Presentation of shipping documents.—(/) "Letters of
credit have been used, by us on export transactions most
frequently on the basis of f. o. b and c. i. f. shipments,
and we require advice of the opening of letter of credit in
our favor before delivery of goods to steamer. However,
our requirement of a letter of credit before delivery of
merchandise to the steamer is subject to the moral risk
and past experience with the particular consignee, and
at times when we are satisfied that a credit will be opened,
due to our receiving cable advices to that effect, goods
are delivered to the steamship companies in order to
catch a particular steamer previous to receipt of advice of
opening of letter of credit in our favor."
(g) "On f. a. s. and f. o. b. and c. and f. and c. i. f. basis
in the case of export transactions, it is not absolutely
necessary to have the relative credits available before
ocean bills of lading and insurance certificates are obtainable, provided we, as shippers, are informed that the
credit in question will be opened. It is of course much
safer to have the actual credit in hand before purchasing
merchandise, or engaging freight and insurance, but this
largely depends upon the circumstances of the entire
transaction."
The letter of credit is not extensively used to
finance imports, but when so applied the terms
are mainly f. o. b. and c. i. f. When a letter of
credit has been issued in favor of the seller,
payment may be made available at the several
successive stages in the completion of the transaction. As indicated in answer (b), the beneficiary may receive his credit even before he
has sent his orders to the factory or mill for
executing the terms of the sales contract. The
next step would be to m o ^ J ^ e finished goods
to the seaboard, where they xiit*y be placed in a
warehouse. Upon the surrender of warehouse
686
FEDERAL, RESERVE BULLETIN.
receipts the shipper may at times receive payment (see answers to (c), (d), and (e)). However, this practice obtains only under abnormal
conditions such as embargoes, freight congestion, or a state of war. It is more usual for
the negotiating bank to effect payment only
upon receiving documents evidencing the actual
placing of goods on the carrier (/, g). In general, a choice among these three points depends
almost entirely upon the credit standing of the
importer.
7.
Question: Have you used acceptance credits opened for
your account in your own favor for—
(a) Transactions involving the importation of merchandise.
(6) Transactions involving the exportation of merchandise.
(c) Transactions involving domestic shipments.
(d) Transactions involving merchandise in "warehouse?
If so, did such credits meet the requirements of your business and give you the credit facilities desired; or, if not,
explain in what respect they were found to be not available.
Answers. Have used acceptance credits—9; have not
used acceptance credits—18.
Acceptance credits unsatisfactory.—(a) "They do not
apply to the operations of established merchants, having
independence of action."
Acceptance credits satisfactory.—(6) "Such credits fully
covered the requirements of the particular transactions in
hand."
(c) "We have used acceptance credits to cover transactions enumerated under (a), (6), (c), (d). All these credits
met the requirements of our business."
JUNE, 1921.
Question: In case you open letters of credit, would you
as a practice be willing to have the beneficiary assign them
so that they would be available by a party unknown to
you?
The replies were unanimous in stating that
American importers do not permit foreign
beneficiaries to assign credits opened in their
behalf to other unknown parties.
10.
Question: Have you obtained loans or cash advances
from your bank on the faith of letters of credit issued by
that bank or another bank in your favor?
(a) Were such credits deposited with the bank and
accepted by them as collateral?
(b) Did your bank merely require that they be exhibited
to prove their existence?
Answers: Have received loans from banks on letters of
credit—3; have not received loans from banks on letters
of credit—23.
" We have obtained loans from our bank in the faith of
letters of credit issued by another bank in our favor. Our
bank merely required that such letters of credit were
legitimate."
It is not a practice of American exporters to
use letters of credit opened in their favor as a
form of collateral for receiving advances from
banks. (See also FEDERAL RESERVE BULLETIN, February, 1921, p. 170, replies to question
25.)
III. POLICY.
Acceptance credits are not widely used by
11.
American merchants. However, those firms
which have availed themselves of this kind of
Question: What in general has been your experience
credit ordinarily report satisfactory experience with dollar credits opened by banks in this country as com(b and c).
Question: Have you found letters of credit useful in local
or domestic transactions; and, if so, how have they been
employed?
Answers:
(a) "While never having made use of letters of credit in
local transactions ourselves, we have been in numerous
instances the beneficiary of such letters of credit by our
customers and have reason to know that they have been
found most useful where so employed."
(6) "Occasionally when financial position or character
of buyer requires such insurance."
Letters of credit may be used in domestic
transactions in two ways. The American exporter as recipient of a letter of credit may
request his bank to issue an ancillary letter in
favor of a domestic manufacturer, who in turn
supplies the necessary goods. A letter of credit
may also be used to finance a purely domestic
transaction, and this practice is finding favor
among American sellers who thus seek to avoid
cancellation of "Ttrtftre contracts. (See FEDERAL RESERVE BULLETIN, February, 1921,
p. 165.)
pared "with your experience with sterling credits issued by
London banks?
Prefer dollar exchange—legal advantage.—(a) " We see no
difference between a dollar credit and sterling credit as
such; in fact, a credit in any currency, aside from the
slight fluctuations in exchange during its pendency, has
little or no bearing on business experience. It is our
custom to study each instrument that is furnished us,
irrespective of the bank or country of origin, and it is only
by experience that one learns what is safe and what is
unsafe. A credit issued by a bank in the United States
is, of course, preferable to one issued abroad, but the only
advantage that it affords is the ease of securing legal
service in the event of default, and in a matter of credit this
advantage should be negligible, as a bank, no matter where
located, should meet its credit obligations without the
necessity for law suits. Our own experience is that
vigilance and care in scrutinizing the form of instrument
furnished and insistence on the elimination of improper or
irregular stipulations is the only Way of avoiding
subsequent misunderstandings and repudiations."
Prefer sterling exchange—more liberal charges.—(6) " I t
is observable that American banks are less liberal in their
concessions of both interest and commission charge when
drafts under their credits are taken up under rebate."
Wider experience.—(c) "Although the increasing use of
dollar credits is making such foreign trade financing more
satisfactory, and most American banks are now in position
to issue both dollar and sterling credits, the wider experience and more intimate knowledge of foreign trade on the
JUNB, 1921.
FEDERAL RESERVE BULLETIN.
part of London banks, almost invariably produces more
satisfactory banking service "when use is made of sterling
credits issued by English, banks, and the same can be said
of the dollar credits now frequently issued by English
banks."
(d) " Our experience "with dollar credits, in fact with all
the credits applied for, has been perfectly satisfactory from
every standpoint, but we can conscientiously say We
consider that the foreign or what we might term the English banks seem to handle and understand the letter of
credit business perhaps more fully than the American
banks. The American banks, in our opinion, during the
war had a great opportunity to build up the letter of credit
business, but we consider that they have at times given
credit where it was not advisable and, for this reason, perhaps, they have at times overextended themselves."
Easier conversion.—(e) "The only objection to the use
of dollar credits is that they have not the universal facility
of exchange and conversion that a sterling has. The
process of cover of exchange by banks requires a freedom
of movement through cross currents that our restricted
export trade does not permit."
The purpose of the remaining questions was
to secure constructive criticism for the development of American credits. The majority of
the answers express satisfaction witn dollar
credits, and in fact some replies indicate a
preference for dollar over sterling credits. One
reason, as stated in answer (a), is the advantage of being able to bring suit against the
issuing bank in the event of default on its
obligation. On the other hand, several
responses compare sterling and dollar credits
to the disadvantage of the latter as shown in
answers (&), (c), (d), and (e). The criticisms
levied against the practice of American banks
can be summarized as follows: (1) Higher
interest and commission charges; (2) inexperience in handling credits; (3) unwise extension of credit; (4) restricted exchange market.
The causes of these defects are apparent. The
United States has entered only recently into the
field of financing foreign trade and therefore
commercial education is limited, credit information is lacking, and our acceptance market
is still narrow.
12
Question: What suggested changes as to practice have
you had from your correspondents abroad in connection
with letters of credit issued by banks in this country?
Have they made any comparison of methods here with
English methods?
13
Question: What in your opinion should banks in this
country do:
(a) To make dollar credits more effective?
(b) To hold and develop the letter of credit business
here?
Answers:
Draw bills of longer maturity.—(a) " Banks in this country appear unwilling to issue credits providing for drafts
of a usuance for six or even four months' sight. Six
months' drafts have long been common in the China
trade and no discrimination thereagainst, we believe, has
687
been made by the British banks. Whether the real
obstruction lies in the Far East or in the discount market
here, we are not decided."
Broaden discount market.—(6) "They should seek to
broaden the discount market for long bills. The position
of the American banks operating abroad needs to be more
firmly established and such banks should be prepared to
study more closely the particular requirements of traders
in their various localities."
Open foreign branches.—(c) "Open branches in foreign
countries."
Assume greater responsibility.—(d) "In our opinion
American banks should accept the same responsibility in
opening credits as English banks do. This would give
more protection to the merchants, as the bank would
undertake to make payment to the beneficiary of the credit
only on the exact terms of the purchase contract. As
matters stand at present we have had the sad experience
that some of our shippers have shipped goods out of time;
also invoiced these goods at the wrong price, and invoiced
the wrong weight. The result has been that we have lost
a considerable amount of money."
(e) "English banks accept more responsibility in connection with the issuance of letters of credit than American
banks. When opening letters of credit through English
banks, it is customary to state exactly the contract terms,
such as quality of the article, shipment, port of shipment,
price of the goods bought, and the bank is responsible to
us that the goods are shipped strictly in accordance with
particulars given. American banks are in the habit of
opening credits only stipulating the article and the value
of the goods. They do not undertake to see that they
are invoiced at the correct price, or that the bills of lading
are in accordance with the purchase."
(/)' 'We think it advisable where a foreign credit is opened
in future by shippers that the terms and conditions of
application be adhered to strictly by the accepting bank.
In other words, we think the bill of lading should be in
exact conformity with the credit application; also, if possible, the price and the amount, etc. We find this a safeguard against irresponsible shippers as unless they live
up to conditions of the credit the accepting bank should
refuse to accept. Of course, the accepting bank would
not know if the quality, etc., was all right, but we feel
under the existing low values where an advance might
come about that the issuer of the L/c should have all
protection possible."
Compare documents and credits with more liberality.—(g)
"We have found, from time to time, difficulties with
the banks here who have interjected stipulations of their
own which were never intended by the banks to their
New York correspondent, and the instrument issued by
the New York bank differed very materially from the
letter of instructions from the foreign bank. This practice, which has gradually come more and more into vogue,
and to a certain extent is the result of unified action
among the American banks, causes needless irritation
between supplier and foreign buyer and should be eliminated in the interest of American commerce. The only
comparison of methods between American and English
banks might be expressed in this way. We have always
found that the manager of an English bank had personal
experience to guide him in connection with the adjustment of any difficulties arising under the terms stipulated
in a credit, but that in American banks there was
either the lack of experience or the lack of authority
and that many matters which would be amicably and
readily adjusted with the manager of an English bank,
through his experience, would be practically impossible
of adjustment with the manager of the foreign or the
credit department of an American bank and oftentimes
result in the reference of the principle to the bank's legal
688
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
department who are in no way qualified by experience or sented by the exporters with the terms stated
by legal precedent to give a proper reply."
in the credits (g and h). Mercantile houses
(h) "Letters of credit should state very plainly all the
conditions under which the purchase or sale was made are strong in support of the movement
and what, if any, latitude is to be allowed regarding the for attaining standardization in commercial
quantity and time of shipment. A case was recently credit forms and uniformity in practice (i,
called to our attention in which a bank here refused to j , and Jc). Along these lines satisfactory
honor a credit opened against a lot of 2,000 bags of a certain
commodity for the reason that the documents called for progress has already been effected by com1,995 bags. A certain latitude, usually 5 per cent, is con- mittees representing the interests of banks
sidered permissible in the quantity shipped, but in view and merchants.
of the many difficulties which have arisen lately, it would
be well to have this point clearly elucidated in the letter
of credit.''
Standardize documents.—(i) "They should have a stand- Fiduciary Powers Granted to National Banks.
ardized form that is written as plain as can be written, just
The applications of the following banks for permission
what is to be expected from the letter of credit. It should
state clearly on its face whether it is revocable or irre- to act under section ll(k) of the Federal Reserve Act have
vocable; whether it is confirmed or unconfirmed. It been approved by the Board during the month of May,
should carry on the reverse side definitions of what is to 1921:
DISTRICT NO. 2.
be considered the standard practice under letters of
credit, viz, whether or not partial shipments will be paid Trustee, executor, administrator, registrar of stocks and bonds, guardian
for; whether a 'proper' bill of lading is to be accepted, or
of estates, assignee, receiver, and committee of estates of lunatics:
The Sussex National Bank, Newton, N. J.
whether an 'on board' bill of lading. If no expiry date
The First National Bank, Roselle, N. J.
is given on the face of the credit, it will lapse one year from
DISTRICT NO. 3.
date drawn, and such other definitions as the practice
of those interested in foreign trade have found expedient Guardian of estates, assignee, receiver, and committee of estates of lunatics:
to have clarified."
The Eighth National Bank, Philadelphia, Pa.
(j) "The adoption of a standard form of letter of credit
and the elimination of technicalities in connection with
DISTRICT NO. 4.
establishing these credits, and making payments against Trustee, executor, administrator, registrar of stocks and bonds, guardian
same."
of estates, assignee, and receiver:
The Troy National Bank, Troy, Ohio.
(h) "Changes in practice we think should originate in
executor, administrator, registrar of stocks and bonds, guardian
issuing credits in the United States, as there is little or Trustee,
of
estates, assignee, receiver, and committee of estates of lunatics:
no uniformity in the forms of advice now employed by
The First National Bank, Erie, Pa.
United States' banks."
As both questions solicit expressions of
opinion from American commercial houses and
foreign correspondents on the one question of
the relative value of American credits, the
results can be summarized best by combining
all replies. The first three answers offer sugestions as to the general policy of American
anks. The recommendation contained in (a)
has already been carried into effect by the
Board's recent ruling permitting Federal Reserve Banks to purchase in the open market
bills of exchange with a maturity of 6 months.
It is urged that the discount market be
broadened, and the number of branches in
foreign countries extended (6 and c). Answers (d) and (e) advise American banks to
assume greater responsibility in their handling
of commercial credits. These institutions are
also asked to adopt a more liberal policy in
applying and comparing the documents pre-
f
DISTRICT NO. 5.
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, and committee of estates of lunatics:
The First National Bank, Bluefield, W. Va.
DISTRICT NO. 6.
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, and committee of estates of lunatics:
Florida National Bank, Jacksonville, Fla.
DISTRICT NO. 7.
Registrar of stocks and bonds, guardian of estates, assignee, receiver, and
committee of estates of lunatics:
The Home National Bank, Thorntown, Ind.
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, and committee of estates of lunatics:
The Keokuk National Bank, Keokuk, Iowa.
DISTRICT NO. 8.
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, and committee of estates of lunatics:
The Carlinville National Bank, Carlinville, 111.
Guardian of estates, assignee, receiver, and committee of estates of
lunatics:
The First National Bank, Mount Vernon, Ind.
DISTRICT NO. 10.
Trustee, executor, administrator, guardian of estates, assignee, receiver,
and committee of estates of lunatics:
The First National Bank, Hominy, Okla.
FEDERAL, RESERVE BULLETIN.
JUNB, 1921.
689
BUSINESS AND FINANCIAL CONDITIONS ABROAD.
ENGLAND.
Very few tangible results have been obtained
by either side in the controversy which still
goes on in England between coal miners and
operators. No coal has been produced for nine
weeks. During the course of the struggle,
however, very material concessions have been
made by all parties to the controversy, and as
a matter of iact original principles have been
forced into the background by the severity of
the strike.
Toward the end of April, following a proposal of the mine owners that wages be reduced uniformly within different "areas"
for a period of three months and if necessary be subsidized by the Government, the
miners offered to take a national average
wage reduction of 2s. per shift, which according
to their calculations would be a 30 per cent
reduction from their 1914 wage rate or an 18
per cent reduction from their present rate.
This, they contended, would be in accord
with the recent reduction in the cost of living
and would leave them with, approximately
the same standard of living as in 1914.
March accounts showed, however, that the
deficit in the industry for that month taken
independently would require a reduction in the
average national wage of 5s. 4|d. per shift, if
allowance were made for minimum profits, or
if not, of 4s. If d. The miners, as stated above,
were willing to take a reduction of 2s. per shift,
but were firmly opposed to any larger reduction. They estimated that a temporary subsidy of £30,000,000 on an annual basis would
meet their demands if operators were willing to
forego profits during the transition stage.
On condition that a permanent settlement
be reached in the industry, the Government, in
reply to this offer, made a counter offer of
£10,000,000 for subsidizing wages during a
transition period of four months. It was suggested that the sum be distributed in such a
way that wages in May, taken on a national
basis, would be reduced£3s. a shift, in June
3s. 6d., and that the balance of the £10,000,000
would be used in July and August to further
temper the drop from the March scale of wages
to that offered by the operators. It was also
implied that the Government would not object
to the creation of a national wages board to
work on wage schedules for the different
districts.
This offer was rejected by the miners, and
it is only recently that negotiations have again
been resumed. It would seem, however, that
the emphasis had shifted from a national pool
of profits to a wage adjustment on a national
basis. The theory of a national wage adjustment appears to have been accepted by the
Government in view of the offer of £ 10,000,000,
while the offer of the miners, as indicated
above, seems to show that they would accept
at least a temporary adjustment on the basis of
the changes in the cost of living, a method of
adjustment which has become very common in
England in recent years.
None of these proposed temporary arrangements provide an incentive for increased production, either to the operator or the miner.
The fundamental difficulty is the decreased
output per man. This is said to have fallen
from 260 tons per annum per miner in 1913 to
190 tons on the same basis in 1920. Following
the adjustment of last autumn, when wages
were regulated by output, production increased
remarkably, clearly demonstrating the fact that
output was below normal.
It can not be stated, however, that there
have been no positive gains as a result of the
negotiations, since both miners and owners
apparently agree that when the adjustment
is made wages are to be the first charge upon
the industry, that they are to bear a definite
ratio to profits, and that surplus profits are
to be divided in a fixed ratio between miners
and owners. The owners have also relinquished the idea of district wage rates and
outlined a group of six "areas" to form the
basis for wage adjustments.
Meanwhile the railway and transport workers
have refused to handle imported coal and it
has become necessary for the Government to
provide public utilities, institutions, etc., with
coal. The Government is not, however, furnishing coal to commercial establishments.
It is supposed that the coal industry was
decontrolled on March 31 instead of in August,
as the law originally provided, partly because
of the fact that the railroads are to be released
from Government management in August. A
bill has recently been introduced into Parliament providing for the reorganization of the
railroads at the time of decontrol along the following lines. All railroads in Great Britain are
to be combined into six groups, a southern,
a western, a northwestern and midland, a
northeastern and eastern, a west Scottish,
and an east Scottish group. Amalgamations
are to be put into operation on January 1,1923.
A permanent rates tribunal is to be set up to
690
FEDERAL BESERVE BULLETIN.
pass on rates in the various districts, the basis
to be used being that of revenue in 1913. If
revenue exceeds this figure, the roads will be
entitled to retain 20 per cent of the surplus,
while rates and fares will be adjusted to absorb
the other 80 per cent. All questions regarding
wages are to be handled by central wages
boards, or, on appeal, by a national wages
board consisting of representatives of workers
and owners. Each railway company is to
have something in the nature of a Whitley
council giving representation to workers and
management. It is understood that the railway workers have already agreed to the proposals.
The financial responsibility of the Government during the period of control is to be
ended with the payment of £60,000,000 to the
roads, one-half of this sum to be paid at the
end of 1921 and one-half at the end of 1922.
The effects of the readjustment to peace
conditions are also apparent in the budget
for 1921-22, which was brought before Parliament on April 25. This budget is divided into
an ordinary or permanent budget and an
extraordinary or nonrecurrent one. Ordinary
receipts are estimated at £1,058,000,000,
while ordinary expenditures are estimated at
£974,000,000. The extraordinary budget includes estimated receipts from war assets of
£158,500,000 and war liquidation charges of
£66,000,000. This makes a total estimated
income of £1,217,000,000, and an estimated
expenditure of £1,040,000,000, leaving a surplus of £177,000,000. From this surplus,
however, must come additional expenses connected with the decontrol of the coal and railway industries, and with domestic and foreign
debt. These have been estimated as follows
by the London Joint City and Midland Bank
(Limited) :
Estimated expenditure in respect of coal,
railways, etc
£97,000,000
Depreciation fund
32,000,000
Revenue payments in scrip
65,000,000
Maturing external debt
80,000,000
Total
274,000,000
From this can be deducted £15,000,000,
proceeds from the civil contingencies fund,
but even so the surplus of £177,000,000 is
changed to a deficit of £82,000,000.
Detailed study of the budget shows that no
important change in taxation has occurred
except that the excess profits tax has been
removed. The yield from the income tax is
estimated at 43 per cent of the total tax
revenue. On the expenditure side considerable reductions have been made in the large
JUNE, 1921.
items, such as army, navy, and civil services.
The national debt service accounts for approximately one-third of total expenditure with
no provision made for interest payment on the
American debt.
During the past month private business has
continued to suffer severe depression. This has
been much accentuated by the coal strike.
The iron and steel, tinplate, and pottery industries have had to curtail production more than
others on this account, with the result that
the figures for output of pig iron and steel
ingots show very great reductions in April
as compared with March, although March
production was low.
Production (metric tons).
Coal.
Monthly average, 1913
1920.
April
May
June
July
August
September
October
November
December
January
February
March
April
1921.
000's.
24,336
Ship
tonnage
under
Steel in- construcPig iron. gots and1 tion (gross
tons).
castings.
000's.
649
000'&
17,131
3 22,131
19,048
3 22,926
16,970
18,885
3
14,044
15,920
20,230
655
738
726
750
752
741
533
404
675
794
846
845
790
709
885
544
a 21,805
17,369
16,437
642
464
493
484
359
68
60
2 2,002,699
3,578,000
3,731,000
505
747
3,709,000
4
3,799,000
1
Revised figures.
2
3 Average of 4 quarterly
estimates.
5 weeks.
*5 Work suspended on all but 2,952,000 tons.
Publication of statistics suspended during strike of miners.
A quarterly survey of conditions in the
cotton industry as presented in TattersalFs
Cotton Trade Circular shows that shipments
of yarn in the first quarter of 1921 amounted
to 64 per cent of shipments in the same period
last year. Shipments of cloth showed approximately the same ratio between the two periods,
which would seem to indicate that unless
stocks have been accumulating the rate of
production during the first quarter of this
year was about two-thirds that of the same
time last year. Production during April and
May have probably been further curtailed.
Unemployment increased seriously during
April and to even larger proportions in May.
Excluding coal miners, 17.6 per cent of trade
union members were unemployed at the end of
April as compared with 10 per cent at the end
of March. Of the 12,000,000 workers eligible
for unemployment insurance, 15 per cent were
JUNB, 1921.
receiving it at the end of April, while 1,854,000
persons were registered at employment exchanges on that date. During May something
like 500,000 cotton textile operatives went on
strike because of wage reductions.
Thus far commodity prices have continued
to decline, although it would seem possible
that with production in many lines curtailed
as a result of the strike there might be a
reaction upward. The Statist index shows a
decline of 4 per cent during April as compared
with 3 per cent during March, while the Board
of Trade index shows a decline of 3 per cent in
April as compared with a 7 per cent decline
in March. The greatest stability is found in
the textile group, the Statist index registering
a slight increase for all textiles and the Board
of Trade registering an increase for cotton.
A study of individual commodity prices
shows that the situation in England during
April was closely similar to that in the United
States. The basis for our study are the
eighty odd average price quotations which are
furnished to the Federal Reserve Board each
month by the American consul general in
England. During April there was an advance
in the price of American and Egyptian raw
cotton, cotton yarns, the leading nonferrous
metals, and domestic hides, while wool and
wool products, iron and steel, copper wire,
tin plate, leather, and shoes, as well as many
other important commodities, were reduced.
The increase which occurred in raw cotton and
yarns was not reflected in cloth prices, which
continued to decline. Prices continued to
decline in all lines of the wool industry until
the time of the May auctions, when values for
the raw material were somewhat increased.
Slight increases in the prices of hides were
not reflected in quotations for leather or shoes.
In the iron and steel industry prices declined more considerably than in other lines.
In spite of the recovery in the prices of nonferrous metals, copper wire and tin plate were
lowered. Coal was quoted on a nominal basis,
except during the first week of April.
As regards the relationship between prices
and currency, it would seem that so far the
reduction in prices and in the volume of
business had had comparatively little effect
upon the quantity of currency outstanding.
Although wholesale prices are approximately
37 per cent below the level of a year ago, bank
and currency notes outstanding have been
slightly increased. Deposit accounts with the
nine London clearing banks, however, declined
6 per cent between January and April. Along
691
FEDERAL, RESERVE BULLETIN.
with the decline in private deposits there has
been a very large decrease in bills discounted
but an increase in advances.
Export credit schemes continue to be under
discussion, but so far there appears to have
been no change from the plan put into effect
at the end of last year whereby in the case of
exports to certain countries, such as Finland,
Latvia, Esthonia, etc., the Government advances up to 100 per cent of the value of the
goods and guarantees 80 per cent. Early in
March the president of the Board of Trade
proposed a somewhat different scheme, namely,
to guarantee up to 85 per cent of the selling
price of the goods and to require from the
importer securities to the value of only 50 per
cent instead of the previous 100 per cent.
This new proposal has apparently not been
put into effect and the transactions under the
older scheme are of a very minor character.
Between January 1 and March 31, 1921,
advances had been made by the Board of
Trade for only £321,000.
FRANCE.
Plans for financing the current needs of the
French Government in meeting its maturing
obligations and in buying food and raw materials abroad have developed rapidly in the
last few weeks. On May 15 it was announced
that the Government would issue a new series
of two-year Treasury bills. Subscriptions will
be received from May 23 to June 25. Interest is to be paid in advance at the rate
of 6 per cent and the bills will be tax exempt in France. On May 25 subscriptions to
a new $100,000,000 loan in the United States
were opened. The bonds of this external
loan will run for 20 years, and pay interest
at the rate of 7-J per cent. They will be marketed at 95. These bonds are not to be redeemed before they mature, but the French
Government has arranged for a sinking fund
which will provide $750,000 monthly for the retirement of bonds bought in the open market.
The conditions of this bond issue are slightly
more advantageous to the French Government
than were those of the issue floated last fall.
France's foreign debt at the end of April,
1921, stood at not quite 33,000,000,000
gold francs, as compared with more than
35,000,000,000 gold francs on September 30,
1920. The progress of debt reduction is shown
by the table following, which is furnished by
the French Financial Agency in the United
States.
692
FEDERAL, RESERVE BULLETIN.
E X T E R N A L D E B T OP F R A N C E .
[In millions of gold francs.]
Sept. 30, Nov. 30, Jan. 31, Apr. 30,
1921.
1921.
1920.
1920.
United States Government.
British Government
United States
Great Britain
Japan..
...
Argentina
Holland
Norway
. . .
Spain
Sweden
Switzerland
Uruguay
Total
16,500
13,195
2,108
2,020
336
145
115
59
564
70
136
80
16,500
11,980
1,342
2,019
336
145
115
45
554
70
117
80
16,500
11,980
1,194
1,915
344
110
115
45
513
70
111
80
16,500
11,980
968
1,894
344
93
115
35,328
33,303
32,977
32,523
502
56
80
JUNE, l 9 2 l .
the new association of coal producers of the
north and east, which goes under the name of
the Groupement des Houilleres du Nord et du
Pas-de-Calais. This association, which in
eludes 17 important coal mining companies,
asks for a loan of at least 800,000,000 francs to
use in repairing the damage done to its properties during the war. The 500-franc bonds of
this loan will pay 6 per cent interest and will be
marketed at 480. They are repayable in 30
years, by annual drawings which will begin
April 1, 1922.
The iron and steel producers of the north
and east have also organized a similar association, which is called " Groupement de la
Grosse Metallurgie (Hauts fourneaux, acieries,
forges, et mines de fers)/ but the character of
the loan they propose to raise for the reconstruction of the steel industry in the devastated regions has not yet been announced.
French foreign trade figures for the month
of April seem to indicate a revival of activity
in foreign buying in France. For the second
time this year there is a surplus of exports
for the month, and the value of the export
trade in April was greater than during any
other month since October, 1920. The import trade for April was slightly larger than
for the two months previous, but it is valued
at only a little more than half the import
trade of the same month last year.
Foreign exchange rates in Paris reflect the
improvement in the French balance of trade.
The fluctuations of the value of the franc in
the important foreign currencies were almost
steadily upward during April, except in the
case of the lire. During May it was reported
that the appreciation of the value of the
franc had somewhat checked foreign buying,
but exact data on the subject are not yet
obtainable.
The following table shows the change which
has taken place in French foreign exchange
since the beginning of the year.
Meanwhile the Senate and the Chamber of
Deputies have postponed final consideration
of the 1921 budget. When they adjourned for
recess on April 30, the ordinary and extraordinary budgets had been agreed upon, but
the amounts to be expended upon the " recoverable budget" (that is, upon reconstruction and upon pensions) had not yet been
finally decided. In estimating the receipts to
be counted upon for ordinary Government
expenditures, the probable monthly receipts
from the tax on total business turnover were
placed at 241,666,599 francs instead of the
415,666,500 francs expected when this tax first
became a law. In the month of April total
receipts from indirect taxes and Government
monopolies were larger by about 300,000,000
francs than in the two months previous, but they
were still smaller than budget estimates even
though the latter have been revised.
Although the Parliament has not reached a
final decision on this year's budget for reconstruction, work in the devastated regions is
proceeding rapidly. An interesting development in this connection is the result of the
laws passed on July 31 and December 31, 1920,
by wiiich the central government guarantees
the principal and interest of loans raised by
industries or districts, for reconstruction purParis Exchange on—
poses. The first city to take advantage of this
opportunity is Albert, an industrial and comNew
Antmercial center on the Ancre River. It is
York. London. Rome.
werp.
floating a 6 per cent 30-year loan for 25,000,000
francs. The bonds are dated May 15, 1921, Francs to the
Dollar. Pound
Lira.
Franc.
and are in 500-franc denominations, to be
sterling.
marketed at 477.50. Before the war Albert Par
:LOO
25.22
5.18
1.00
average 1
53.10
.69
L. 05
specialized in sugar refining and in iron and 1920
14.58
1921 end of—2
steel manufactures, and it is undertaking reJanuary
54.03
.52
13.93
L.05
February
54.03
13.95
.51
L.05
construction in an energetic fashion. An even
]L.04
March
55.89
14.24
.58
April
52.22
]L. 00
13.21
.64
more important outgrowth of the laws by
which the state guarantees loans for the 1
Average monthly quotations.
devastated regions is the loan requested by 2 Last
Wednesday in the month.
Berlin.
Mark.
1.25
.25
.25
.23
.23
.20
JUNE, 1921.
The revision of the French general tariff,
which had been in progress for some months,
was completed early in April. The object of
this revision, which increases rates in some
cases more than 200 per cent, is to prevent
unfair competition in French markets by
manufacturers from countries with a greatly
d e p r e c i a t e d exchange. Products of the
United States of America are specifically exempted from the new rates, and they do not
apply to countries which enjoy minimum
tariff rates when importing goods into France.
Wholesale prices in France continued to
decline during April. The wholesale price
index number of the General Statistical Office
registered a decline of 3.6 per cent for the
month, as compared with a decline of 4.5 per
cent the month previous. Among the more
important price reductions are those of iron
and steel products, which are responding to
the lower price of coal, and of raw cotton and
raw wool. The increase in the price of vegetable foods which is recorded by the Statistical Office's index is accounted for by the
backward condition of the crops, which have
suffered from lack of rain this spring.
Although the newspapers continue to complain of continued high prices in retail stores,
the retail index of the General Statistical Office
shows a decline of 8 per cent in April as compared with a drop of not quite 4 per cent in
its wholesale price index.
The condition of the Bank of France during
April shows comparatively little change except in its gold reserve, which increased
10,000,000 francs during the month. The
amount of the advances of the bank to the
Government fluctuated as usual during April,
closing the month at 26,000,000,000 francs.
It is difficult to judge accurately of the unemployment situation in France. French tradeunions peased to publish statistics giving the
proportion of their membership out of work
during the war, and the only figures now obtainable on the subject of unemployment are the
numbers of unemployed in receipt of relief
from municipal and departmental unemployment funds. The number of these funds is
not very large, although it has increased during
the last six months. At the end of October,
1920, there were only 2 departmental and 30
municipal unemployment funds. By February
18, 1921, there were 7 departmental and 65
municipal funds. In April, 1919, the number
of unemployed receiving aid from the departments and municipalities rose to 116,000. By
January 1, 1920, it had fallen to 13,507.
Throughout the year 1920 unemployment
increased in France with some regularity. On
693
FEDERAL RESERVE BULLETIN.
April 4, 1921, the Minister of Labor, speaking
before the Senate, said: uThere are at present
72,000 receiving relief from departmental or
municipal funds, and adding to this number the
unemployed who are not receiving relief, we
may estimate the total number of unemployed
at about 180,000." After April 4, however,
unemployment increased rapidly. The number of those receiving public aid rose to 84,309
on April 22, although it declined in the next
week to 83,256. The French Central Government has been requested by both employers
and employees to take steps to increase Government aid in dealing with unemployment.
ITALY.
Italian Government finances continue to
show the improvement first noted at the end
of last year. The latest figures showing Government revenues from taxation and monopolies from July 1, 1920, to March 31, 1921, totaled 7,589,000,000 lire, which is more than the
total anticipated for the entire fiscal year
1920-21. The excess over the original estimates was particularly large in the case of
direct taxes, which yielded in the nine months
a total of 2,371,000,000 lire, while the estimated
total for the fiscal year had been 1,856,000,000
lire.
The following table shows the yield, in millions
of lire, from the several classes of taxes in the first
nine months of the current fiscal year, as compared with the same period in the preceding
year:
[Millions of lire.[
July 1,1920, July 1,1919,
to Mar. 31, to Mar. 31,
1921.
1920.
Direct taxes ..
Taxes on business (stamp dutie 3, registration
fees, inheritance taxes, luxury- taxes, etc.)-..
Taxes on consumption..
Industrial monopolies
Commercial monopoles
Total..
2,371
1,486
1,463
1,254
2,132
369
929
908
1,357
272
7,589
4,952
Beginning on February 16, a new type of
treasury bond (5 per cent maturing in seven
years) began to be offered for sale through a
consortium headed by the Banca d'ltalia.
Until August 14,1921, the rate of issue will be
91.50, plus the accrued interest from February
15 to the date of sale. After August 14 the
rate will be advanced. For those who purchase the bonds before August 15, the actual
rate of interest will be 6.20 per cent and an
additional 0.25 per cent will be granted those
who choose to register their bonds. In addition, lottery drawings will take place twice a
694
FEDERAL, RESERVE BULLETIN.
year, and a total of 2,545,000,000 lire will be
paid annually in 1,200 premiums ranging from
1,000 to 1,000,000 lire. The bonds are exempt
from all present and future state taxes. The
issue is intended primarily for the reconstruction of the provinces which were occupied by
the enemy during the war and for the economic
development of the annexed territories.
In accordance with its declared policy of a
gradual restoration of free trade, the Government has lately enacted a number of measures
abolishing or restricting Government control
of the distribution and price of several classes
of goods. Thus, in the course of the months
of February and March, exports of olive oil
from one province to another were again
permitted, the prefects, however, retaining
the right to requisition the amounts required
for the needs of the province if necessary.
Export abroad of a limited amount of olive oil
was also permitted. In the same way domestic
and foreign trade in grains for animal feed,
barley, and oats were freed from a large measure
of control. The commissioner of food supply
has also been authorized to discontinue Government control of the distribution of maize
beginning with the next crop, and to restore
partial free trade in bran. Flour prices will
continue under control. Two consortiums
which were organized to regulate the importation and distribution of commodities will also
be discontinued during the year. The codfish
consortium ceased functioning on April 30, and
the rice consortium is to end on September 15.
In 1919, Government monopolies were
created for the sale of coffee and coffee substitutes, and certain other less important
commodities. During the fiscal year 1919-20
the yield from these sources amounted to
422,000,000 lire. It has now been decided to
abolish the Government monopolies in these
lines, and the coffee trade will be taken over
by a consortium of merchants who will control
it until April, 1922, when free trade will be
restored.
During the first months of this year the
note circulation of the banks of issue has been
gradually decreasing. On December 31, 1920,
the total note issue amounted to about
19,700,000,000 lire. By March 20 it had been
reduced to 18,600,000,000 lire.
One of the evidences of inflation in 1920 was
the unprecedented growth of corporate capital
in that year. The total net increase, including
both the capital subscribed to newly created
corporations and the increased capitalization
of old ones, amounted to 4,835,000,000 lire. In
the preceding years, the net increase was as
follows: 1915, 79,000,000 lire; 1916, 236,000,000
JUNE, 1921.
lire; 1917, 1,288,000,000 lire; 1918, 2,950,000,000 lire; 1919, 2,779,000,000 lire. The increase in 1920 was thus nearly 74 per cent
larger than in 1919, and larger than the combined increase for the four years 1915-1918.
The largest increase (99,0000,000 lire) was
shown by banking corporations.
GERMANY.
The industrial and financial situation in
Germany was complicated during April and
early May by events not primarily economic.
The communist uprising in central Germany,
the proposal to occupy the Ruhr, the 50 per
cent tax on imports from Germany imposed by
England, France, and Belgium, the extension
of the Rhine customs boundary farther into
Germany, the uncertainty as to the outcome
of the reparations settlement, and the dissension in Upper Silesia all contributed to make
the business situation uncertain.
The reparations settlement has now been
achieved and Dr. Wirth, the new chancellor,
who was finance minister in the last cabinet,
is reported to be doing everything in his power
to put its terms into effect. The Upper
Silesian question remains.
One effect of the political uncertainty seems
to have been the partial relaxation of Government control of industry. The regulation of
newsprint paper was done away with early in
April; control of export prices for several
important commodities has been relaxed;
control of the grain market has been revised
and decentralized, although a certain amount
of regulation is to be retained until August,
1922, and the critical situation in the export
market has led the Eisenwirtschaftsbund to
relax control of semifinished iron products.
The last-named action had the effect of
lowering quotations for iron products from 13
to 30 per cent, according to the RheinishWestphalische Zeitung, and the Eisenwirtschaftsbund announced decreases in the prices
of the various kinds of pig iron ranging from 5
to 10 per cent, which became effective May 1.
Aside from these price changes there seems
to have been no very definite movement in the
German price level during April. Prices of
lime nitrogen, manure salts, kainite, straw
and hay, dyes, paper, and silk increased somewhat during the month, but the net effect
of the changes which took place was such
that the wholesale price index number of the
Frankfurter Zeitung remained unchanged.
The evidence available on the subject continues to show that the cost of living in
Germany is declining, even though slowly.
The following table of living costs in Greater
[In millions of marks.]
Berlin has been furnished the Federal Reserve
Board by Dr. R. R. Kuczynski, statistician for
Berlin-Schoneberg:
Reichs- und
DarlehnskassenNote circu- Darlehnskassenscheine
lation of
held as the Reichs- scheine in
bank.
circulation.
reserve m
the Reichsbank.i
W E E K L Y COST OF LIVING IN GREATER BERLIN FOR A
FAMILY OF F O U R .
[In marks.]
1921
Food.
Rent.
Heat
and
light.
9.80
5.50
1.90
5.85
5.75
28.80
1920.
January
February
March
April
May
June
July
August
September
October
November.
December
86.00
100.00
125.00
157.00
163.00
128.00
135.00
131.00
123.00
138. 00
136.00
141.00
8.00
8.00
8.00
8.00
9.00
9.00
9.00
9.00
9.00
9.00
9.00
9.00
12.00
13.00
20.00
22.00
22.00
22.00
22.00
21.00
22.00
22.00
22.00
22.00
70.00
82.00
105.00
112.00
98.00
84.00
77.00
70.00
70.00
70.00
70.00
70.00
44.00
51.00
64.00
75.00
73.00
61.00
81.00
77.00
75.00
79.00
79.00
82.00
220.00
254. 00
322.00
375. 00
365.00
304. 00
324.00
308.00
299.00
318.00
316.00
327. 00
1921.
January
February
March
April
139.00
, 133.00
129. 00
121.00
9.00
9.00
9.00
9.00
22.00
23.00
23.00
23.00
70.00
70.00
63.00
63.00
80.00
78.00
74.00
65.00
320.00
313.00
298.00
281.00
August, 1913, to
July, 1914
Clothing.
Sun-
Total.
Dr. Elsas's index number of living costs in
Frankfurt-am-Main gives further evidence in
this same direction. Using the cost of living
on April 1, 1919, as 100, his index reaches 26.5
for January 1, 1914, 297 for March 1, 1921,
and 280 for May 1, 1921.
The fluctuations of prices on the German
stock exchanges during this period indicate the
changes in the sentiment of the community in
regard to its economic future. The Frankfurter Zeitung's index number of securities
prices (which is based upon the prices of 10
bonds and 25 stocks, with prices on Jan. 1,
1920, as a base) fell from 166 on April 9, to 151
on April 23, and returned to 159 the last, day
of the month.
In Dr. Havenstein's review of the operations
of the Reichsbank during 1920, it is pointed
out that the note circulation of the bank
almost doubled in the course of the year. In
the first weeks of 1921 this increase in the note
circulation was arrested. The end of March
bank statement established a new high level,
however, which has been again exceeded by
the note circulation at the end of April. Meanwhile the number of Darlehnskassenscheine
in circulation has been decreasing. The following table shows the developments of the
month:
695
FEDERAL. RESERVE BULLETIN.
JUNE, 1921.
Mar. 31.
Apr. 7 . . . .
Apr. 15
Apr. 2 3 . . .
Apr. 30
23 836
22 941
23 144
23 631
24,149
69 417
69,235
68 736
68 379
70,840
10 168
10 001
9 755
9 560
9,543
1
The proportion of Reichskassenscheine included in these figures is
very small.
On April 8 the Reichsrat approved a law
suspending for three years section 17 of the
German bank act. This section provided
that the Reichsbank keep, as a reserve against
its notes in circulation, one-third their value
in coin, bullion, or Government notes. It was
virtually set aside in August, 1914, by a ruling which legalized the use of the newly instituted loan bank notes (Darlehnskassenscheine) as a substitute for gold in the Reichsbank reserve. The new law will, therefore, be
of little more than technical importance. The
reason for its proposal at this time seems to
be the fact that the war loans which secured
the Darlehnskassenscheine are gradually being
paid off. For some time, as the following
table (taken from the Frankfurter Zeitung) indicates, the Reichsbank has been withdrawing these notes from circulation.
DARLEHNSKASSENSCHEINE (LOAN BANK NOTES).
Per cent Per cent
in the
in
Eeichscirculabank.
tion.
E n d of 1916
1917
1918
1919
1920
March, 1921
12
18
36
45
66
68
88
82
64
55
34
32
Presumably as the business of the loan banks
diminishes, these notes will be canceled, and
it is to provide for this contingency that the
new law is brought up. As some of the
Darlehnskassenscheine are used by the public as a substitute for the Reichsbank notes,
and some of them are held as cover for the
Reichsbank notes, their cancellation will mean
increasing the number of Reichsbank notes
in circulation and also providing some new
form of cover for these notes.
696
FEDERAL EESERVE BULLETIN.
JUNE, 1921.
In March the movement toward increasing movement noticeable in two important groups,
the capital of German corporations seemed namely, animal foods and coal. The latter
to be arrested. Increases in capital during rose from 279 to 291, a gain of 4 per cent.
that month amounted to not quite 531,000,000 The wood pulp index remained unchanged,
marks, as compared with 1,092,000,000 marks prices continuing at almost five times their
in January, and 1,373,000,000 marks in Feb- prewar level. Quotations for hides and leather,
ruary. In April, however, the number of on the other hand, were about 15 per cent
companies increasing their capital was larger lower than before the war. A significant
again, and the value of the stock they offered decline occurred during April in building mato the public (according to the compilations of terials, the index shifting from 298 to 236.
the Frankfurter Zeitung) amounted to almost Other commodity groups showed a less decided
1,687,000,000 marks. Offers of stock by new and, in general, a slower rate of decline.
concerns and bond offerings also increased,
The industrial depression continues seriously
and the total value of stocks and bonds placed to affect the unemployment problem in Sweden.
upon the German market during the month is The number of applicants per 100 occupational
placed at 2,559,000,000 marks. The most openings declined from 301 to 240 in March,
important of the companies to increase their apparently indicating that the peak in unemcapital is the group of chemical manufacturers ployment has been reached. However, in
known as the Aniline Concern, which offer spite of the improvement evidenced by these
800,000,000 marks worth of new stock for figures, the Swedish Social Board reports no
sale.
general betterment in labor demand except in
There seems to have been a slight improve- seasonal trades and agriculture. The reducment in employment conditions in Germany tion in the number of applicants is attributed
during March (the most recent period for which to the fact that the enumeration of vacancies
accurate information is available). The per- includes not only those in established industries,
centage of trade-union members unemployed but also provided temporary employment by
decreased 1 per cent during the month. At the State and local communities. The figures
the end of February 4.7 per cent of the 6,397,092 for unemployment are* presented in the table
trade-union members then enrolled were out of below:
work. During the last week in March 3.6 per
cent of 6,242,000 members were unemployed.
NUMBER OP APPLICANTS PER 100 VACANCIES.
The public employment agencies report a
similar improvement. In March there were
only 188 applicants for every 100 positions
1920
1921
1913
open, as compared with 206 in February. The
ratio of employees desiring work to positions January...
153
246
125
301
February..
133
112
open showed a greater proportion of unemploy- March
240
110
91
97
80
ment in the textile and metal and machine April
May
99
84
trades than in any others. The number of June
112
92
107
94
those receiving unemployment support from July
August
96
95
September.
89
98
the State also decreased during the month, October
98
110
declining from 428,665 on March 1 to 416,940 November.
129
155
117
153
on April 1. Newspaper dispatches in regard December.
to unemployment indicate that the situation
during April did not continue to improve.
No improvement was apparent during
April in the paper and pulp industry. The
SWEDEN.
Swedish pulp mills are feeling the effects of the
A somewhat retarded downward movement demoralization in the English paper industry
in wholesale prices, further slackening of which followed as a result of the importation
foreign trade, and continued depression in into England of German paper products. It
industry and the labor market are the out- is expected that the import tax of 50 per
standing facts in current reports from Sweden. cent levied by Great feritain on German
The wholesale price index of the Svensk products will stimulate the activity of the
Handelstidning registered 229 in April, a de- English paper mills and create new demands
cline of slightly more than 3 per cent during the for pulp in the Swedish market. Manufacmonth. The total fall from the peak in June, turers in Sweden are handicapped also by the
1920, is somewhat less than 40 per cent. A low rates of exchange ruling for Finnish marks
notable feature in April was the upward price and Norwegian kroner. Kadical price re-
FEDERAL RESERVE
JUNE, 1921.
ductions in the Swedish pulp market are
beginning to be made in an effort to meet the
competition of the pulp industries of Norway
and Finland.
Exports of the principal commodities during
March continued to show a decline in quantity
considerably below the normal prewar figures
for the corresponding month in 1913. The
export of newsprint paper which greatly
exceeded peace time figures throughout 1920,
fell in March to 96 per cent of the quantity
exported in March, 1913. Iron ore exports
which have shown a steady increase during
the first three months of this year were 13
per cent greater than the prewar March
figure—a notable exception as compared with
the other leading Swedish industrial products.
The following table, excerpted from Affarsvarlden, shows the relation of the monthly
exports of the principal commodities in 1920
and the first quarter of 1921 to the corresponding periods in 1913:
RATIO OF QUANTITATIVE MONTHLY EXPORTS OF PRINCIPAL COMMODITIES IN 1920 AND 1921 TO EXPORTS IN
CORRESPONDING MONTHS IN 1913.
Wood
products,
sawn.
1921
1920
Sulphite
1920
88
1921
1920
1921
104
190
116
Iron ore.
Pig iron.
Matches.
1920
Year
1920
Other
paper.
Per Per Per Per Per Per Per Per
cent. cent. cent. cent. cent. cent. cent. cent.
28
136 284
140 157
127
181 ji55
23
34 282 290 s 93
61 200
206
20
175
96
31
188
51 240
346
123
227
108
137
115
134
118
51
161
138
137
75
130
190
121 - 129
112 - • - • " 155
87
110 ----121
180
129
85
81
167
87
62
60
204
58
57
47
66
203
74
January
February
March
AprU
May
June
July
August
September
October
November
December
Year
February
March
April
May
June
July
August
September
October
November
December
1921
Newsprint
paper.
1921
1920
1921
1920
1921
Per Per Per Per Per Per
cent. cent. cent. cent. cent. cent.
41
87 186
33
40 i 72
43
65
88 118
49
51
21
115
99
77
46
106
71 113
116
185
49
67
144
73
62
110
50
61
55
51
48
76
60
35
64
63
65
73
55
66
56
81
•
-
-
-
"
58
62
105
A bill is now before the Riksdag for a provisional increase in the import duties on some
508 different kinds of goods. The legislation
is of an emergency character, providing temporary protection for the home market against
foreign competition. According to the terms
of the bill it is to be effective for one year, July,
1921, to July, 1922.
It is proposed to make a 100 per cent increase in duties on commodities which are
taxed according to,weight, such as furniture,
wall paper, cotton and wool textiles, hosiery,
drapery, china, glassware, pottery, and metals,
including iron and steel. The bill provides a 30
per cent increase on goods taxed on an ad valorem basis. This group includes different kinds
of machines and vehicles, internal-combustion
engines, locomotives, motor cars, etc. It is calculated that these additional duties will yield
20,000,000 kronor to the treasury.
A reduction of the Riksbank's discount rate
from 7-| per cent to 7 per cent was made on
April 26, followed by a second lowering of the
rate to 6J per cent on May 4.
The note circulation of the Riksbank in
April dropped from 716,900,000 kronor to
680,500,000 kronor. This is a decrease of
about 13 per cent from the total note circulation in September, when the peak was reached.
The following business failure and protest
statistics are presented as an indication of the
effects of the economic depression:
PROTESTED
BILLS.
Number (in
thousands).
January .
February.
March
April....
Mav . .
June
July
August
September
October
November....
December
Amount (in millions of kronor).
1913
1920
1921
1913
1920
4.1
3.8
4.3
4.3
4.9
4.6
5.0
4.4
4.0
4.8
4.1
4.3
2.9
2.6
3.1
3.1
3.3
3.5
3.8
3.5
3.6
4.2
4.1
5.2
6.0
6.4
8.5
2.0
1.9
2.1
2.2
3.1
2.6
2.9
2.4
1.9
2.2
2.8
1.9
6.3
5.8
6.3
4.8
5.2
4.8
6.2
5.1
6.3
7.9
7.9
10.8
1921
13.4
14.1
20.1
, FAILURES.
Total number.
tea
•
697
BULLETIN.
1913
January...
February
March
April
May
June
July
August
September.
November
December....
. ..
328
285
300
342
302
263
342
280
324
393
336
309
1920
214
167
172
170
201
179
182
130
203
219
239
274
1921
301
381
390
698
FEDERAL RESERVE BULLETIN.
State Banks and Trust Companies Admitted.
JUNE, 1921.
New National Bank Charters.
The following list shows the State banks and trust
The Comptroller of the Currency reports the following
companies which have been admitted to membership in increases and reductions in the number and capital of
the Federal Reserve System during the month of May, 1921. national banks during the period from April 30 to May 27,
One thousand five hundred eighty-four State insti- 1921, inclusive:
tutions are now members of the system, having a total
capital of $552,809,045, total surplus of $526,827,174, and
Banks. Amount.
total resources of $10,216,727,588.
Capital. Surplus.
Total
District No. 1.
Inman Trust Co., Cambridge, Mass
$200,000
$50,000 $1,064,638
District No. 5.
Northeast-Tacony Bank, Philadelphia,'
Pa
:
200,000
55,826
256,271
District No. 5.
Farmers Bank, Belhaven, N. C
Bank of Lunenburg (Inc.), Kenbndge,
Va
Potomac Valley Bank, Petersburg, W.
Va
Palmetto Bank and Trust Co., Florence, S. C
Farmers & Merchants Bank, Walterboro, S. C
25,000
7,500
192,873
50,000
70,000
511,703
46,205
500
164,186
100,000
17,000
658,318
100,000
30,000
707,579
60,000
60,000
25,000
30,000
3.000
1,250
536,474
267,700
49,371
100,000
25,000
12,350
20,000
266,863
238,926
New charters issued to
With capital of.
Increase of capital approved for
With new capital of
Aggregate number of new charters and banks increasing capital
With aggregate of new capital authorized
Number of banks liquidating
Capital of same banks
Number of banks reducing capital
Reduction of capital
Total number of banks going into voluntary or involuntary liquidation or reducing capital
Aggregate capital reduction
Consolidation of national banks under the act of
Nov. 7,1918
Capital
$1,425,000
1,240,000
19
2,665,000
*4,*345,"666
0
4,345,000
6
The foregoing statement shows the aggregate of increased capital for the period of the banks embraced in statement
Against this there was a reduction of capital owing
to liquidations, etc
2,665,000
4,345,000
Net decrease.
1,680,000
District No. 6.
Monroe County Bank, Monroeville, Ala.
Bank of Eastman, Eastman, Ga
Farmers & Merchants Bank, Girard, Ga.
Farmers & Merchants Bank, McDonough, Ga
Bank of Zebulon, Zebulon, Ga
District No. 8.
Bank of Marvell, Marvell, Ark.
Bank of Waldron, Waldron, Ark
Citizens Bank, Tunica, Miss
Bank of Henning, Henning, Tenn
50,000
60,000
75,000
25,000
8,000
306,760
20,000
324,015
27,500 1,188,615
7,500
302,575
100,000
100,000 2,374,431
District No. 9.
Citizens State Bank, New Ulm, Minn.,
The State Bank of Townsend, Townsend, Mont
Farmers State Bank, Fullerton, N. Dak.
100,000
25,000
10,000
1,000
671,067
113,612
30,000
30,000
30,000
25,000
25,000
50,000
25,000
50,000
50,000
100,000
20,000
6,000
153,923
118,203
87,530
100,232
185,443
422,027
161,342
522,279
289,709
1,454,931
District No. 11.
First State Bank, Emhouse, Tex
Josephine State Bank, Josephine, Tex..
Guaranty State Bank, Killeen, Tex
First State Bank, Murchison, Tex
First State Bank, Richland, Tex
Guaranty State Bank, Robstown, Tex.
First State Bank, Streetman, Tex
First State Bank, Teague, Tex
First State Bank, West, Tex
Yoakum State Bank, Yoakuin, Tex
3,000
20,000
20,000
5,000
50,000
Commercial Failures Reported.
While a tendency toward some reduction in the country's
business mortality has recently developed, the 960 failures
reported to R. G. Dun & Co. during three weeks of May
largely exceeded the 377 insolvencies of the corresponding
period of last year. The returns for April, the latest
month for which complete statistics are available, disclose
1,487 commercial defaults for $38,567,769 of liabilities, an
increase of 151 in number, in comparison with the 1,336
failures of March of this year, but a reduction of nearly
$29,000,000 from the high-record indebtedness of that
month. Aside from March, the April insolvencies are the
smallest in number of any montn since last November,
while the liabilities are the lightest of the present year.
Comparing with the low mortality of April of 1920, nowever, sharp increases appear in both respects, and the failures are larger in number in all of the twelve Federal
Reserve districts. With two exceptions—the seventh
and ninth districts—the indebtedness is also heavier in
every case.
Failures during April,
Number.
District No. IS.
W. G. Jenkins & Co., Mackay, Idaho...
Farmers State Bank, New Plymouth,
Idaho
Albany State Bank, Albany, Oreg
Bank of Wasco, Wasco, Oreg
Zillah State Bank, Zillah, Wash
50,000
10,000
428,931
25,000
50,000
25,000
25,000
10,000
339,308
793,956
425,643
71,719
10,000
25,000
1.000
WITHDEAWAL.
Bank of Amityville, Amityville, N. Y.
VOLUNTARY LIQUIDATION.
First State Bank, Colorado, Tex.
CONSOLIDATION.
The Oakland County Savings Bank, Pontiac, Mich., has consolidated
with the Pontiac Commercial & Savings Bank, Pontiac, Mich.
Liabilities.
District.
1921
1920
1921
1920
First
Second
Third
Fourth
Filth
Sixth
Seventh....
Eighth
Ninth
Tenth
Eleventh...
Twelfth....
145
229
104
118
154
136
178
115
39
50
98
121
51
117
24
36
14
36
39
14
16
32
16
109
$1,746,699
10,471,232
2,227,631
4,366,788
3,334,591
1,997,350
3,949,115
2,427,872
593,718
1,966,778
2,905,847
2,580,148
$982,320
2,865,153
278,334
352,946
Total
1,487
504
38,567,769
13,224,135
361,833
4,551,640
200,207
681,330
628,450
100,582
2,132,890
JUNE, 1921.
FEDERAL RESERVE BULLETIN.
699
RULINGS OF THE FEDERAL RESERVE BOARD.
Purchase of bankers' acceptances direct from accepting
banks.
Federal Reserve Banks may, under the
terms of the first paragraph of section 14,
purchase bankers' acceptances in the open
market "with or without the indorsement of a
member bank/' and such purchases may be
made from any individuals, corporations, or
banks. It is clear that under the terms of
this paragraph a Federal Reserve Bank technically has authority to purchase from the
drawer, or even from the accepting bank, a
bankers7 acceptance which bears no indorsement other than that of the accepting bank.
The normal and desirable practice, however,
is for the drawer to discount acceptances with
some bank other than the accepting bank,
rather than for the accepting bank to discount
the acceptances. In view, however, of the
fact that the acceptance business is comparatively new in this country, and in view of the
consequent lack of an adequate open market
for bankers' acceptances in some districts, it
has seemed best for some of the Federal Reserve Banks to purchase acceptances direct
from the accepting banks, in the hope that
the proper use of, and an active market for,
bankers acceptances may thereby be encourIt is, nevertheless, apparent that the indorsement of the accepting bank adds no strength to
the instrument, since the accepting bank is
already liable, primarily, as acceptor, and the
Federal Reserve Board in February, 1920,
instructed Federal Reserve Banks that all
purchases direct from the accepting bank of
bankers' acceptances bearing no member bank
indorsement other than that of the accepting
bank should be made at the prevailing rate for
commercial paper rather than at the preferential rate applicable to bankers' acceptances
as such.
The third paragraph of section 13 of the
Federal Reserve Act provides that no Federal
Reserve Bank shall discount for any member
bank an aggregate of notes, drafts, and bills
bearing the signature or indorsement of any
one borrower m excess of 10 per cent of the
member bank's capital and surplus, this
restriction not applying to the discount of bills of
exchange drawn in good faith against actually
existing values. This limitation does not
apply to open-market purchases made under
authority of section 14, so that it does not
prevent a Federal Reserve Bank from purchasing an unindorsed banker's acceptance
from the accepting member bank, even though
the Federal Reserve Bank already holds under
discount from that member bank paper representing loans in an amount equal to 10 per
cent of the member bank's capital and surplus
made by the member bank to the drawer of the
acceptance.
It should be remembered, however, that there
is no obligation upon a Federal Reserve Bank to
purchase paper offered to it, even though the
paper is technically eligible as a matter of law.
The Federal Reserve Banks have discretionary
power, just like any other bank, to decline to
purchase paper whenever for any reason that
course seems advisable. In view of the fact
that an acceptance indorsed only by the accepting bank is supported by the credit of only two
parties, and in this respect is like a customer's
note indorsed by the bank, the Federal Reserve Board feels that a Federal Reserve Bank
is justified in limiting its open-market purchases of bankers' acceptances of this character, so that it will at no time hold under rediscount or purchase from one member bank an
aggregate amount in excess of 10 per cent of
the member bank's capital and surplus of (1)
notes, drafts, and bills bearing the signature or
indorsement of any one borrower, and (2)
bankers' acceptances made by the member bank
for the same oorrower, but bearing no indorsement other than that of the accepting bank.
The Board has, however, issued no ruling upon
this point, and for the time being at least is
willing to leave the matter to the sound banking discretion of the officers of the Federal
Reserve Banks.
Renewal acceptances in import transactions.
In a letter recently received by the Federal
Reserve Board it was stated that—
A national bank makes acceptances covering the importation of automobile parts from France, with a maturity
of 90 days, which is supposed to be sufficient to cover
payment for the merchandise in France, its transit to New
York, its warehousing, and subsequent sale from warehouse. It is found, however, that before the transaction
has been completed by the sale of the merchandise, that
the 90-day period has expired.
The letter inquired whether it would be
proper under these circumstances for the
national bank, at the maturity of the original
acceptance to make renewal acceptances to
finance the subsequent storage and resale of
the automobile parts. It appeared from the
letter that the importer was drawer of the
original drafts and was to be the drawer of the
renewal drafts and that at the maturity of the
original'Jacceptances the parts had already
arrived in the United States and were stored
in warehouses pending resale by the importer.
700
FEDERAL RESERVE BULLETIN.
Section 13 of the Federal Reserve Act does
not confer authority upon national banks to
accept drafts growing out of the storage of
goods other than ' 'readily marketable staples,"
and automobile parts can not be regarded as
readily marketable staples within the meaning
of this section. Consequently, if the drafts are
to be secured by warehouse receipts covering
the automobile parts, that fact would not of
itself make the drafts eligible for acceptance
by national banks. The drafts are eligible for
acceptance only if and upon the ground that
they can be said to grow out of the importation
of the automobile parts within the intent of
section 13.
As stated in the Board's regulations, no renewal draft can be eligible for rediscount if at
JUNE, 1921.
the time of its acceptance the period required
for the conclusion of the transaction out of
which the original draft was drawn shall have
elapsed, and the question of the eligibility of
renewal drafts, therefore, must necessarily
depend upon the stage of the transaction at the
time the renewal drafts are drawn. The Board
is of the opinion that where the goods have
come into the possession of the importer in the
United States, who is the taker of the credit,
the transaction involving the importation of
those goods must be considered so far concluded as to preclude the issuance of a renewal
draft based upon that transaction. The Board
is of the opinion, therefore, that upon the facts
stated the renewal drafts would be ineligible
for acceptance by national banks.
LAW DEPARTMENT.
Jurisdiction of Federal courts in suits against Federal plaint for lack of equity. This latter motion
Reserve Banks.
was in the nature of a demurrer and the issue
On May 16, 1921, the Supreme Court of the
United States rendered a decision in the case of
American Bank & Trust Company et al., v. the
Federal Reserve Bank of Atlanta et al., upholding the Federal Reserve Bank's contention
that the district court of the United States had
jurisdiction of the case, but reversing the decrees of the lower courts which had granted the
Federal Reserve Bank's motion to dismiss the
plaintiffs' complaint. The suit was brought in
the superior court of Fulton County, Ga., by a
group of nonmember country banks to enjoin
the Federal Reserve Bank of Atlanta from
collecting checks drawn on those country banks,
the complaint attempting to allege that the
Federal Reserve Bank intended to undertake
the collection of such checks by personal presentation and demand of payment in cash for the
purpose of injuring the banks on which the
checks were drawn. Upon the defendant's
petition the case was removed to the district
court of the United States for the northern
district of Georgia and the plaintiffs moved to
remand the case to the State court upon the
ground that the Federal court had no jurisdiction. The Supreme Court holds that since
the Federal Reserve Banks are organized under
the Federal Reserve Act any suit brought
by or against a Federal Reserve Bank arises
out of the laws of the United States within the
meaning of section 24 of the Judicial Code.
The decision, therefore, establishes that the
Federal courts have jurisdiction over any such
suit, provided it involves the necessary jurisdictional amount.
At the time the plaintiffs filed their motion
to^iremand the case to the State court, the
defendants filed a motion to dismiss the com-
before the Supreme Court upon this motion was
merely whether, as a matter of pleading, the
plaintiffs' bill of complaint stated a cause of
action. The decision of the Supreme Court is
not, therefore, a determination of the merits
of the litigation and the case will now go back
to the district court of the United States for the
northern district of Georgia for trial upon the
merits. In its opinion the Supreme Court holds
merely that nonmember banks may be entitled
to some relief if they can prove that the Federal
Reserve Bank malevolently intends to accumulate checks and to make presentation thereof
in an oppressive manner for the purpose of
injuring the banks upon which the checks are
drawn. The decision will not interfere with
the present check clearing functions of the
Federal Reserve Banks and those banks will
continue, as heretofore, to collect at par checks
drawn upon those banks which are listed upon
the par lists.
The text of the opinion is given below:
SUPREME COURT OF THE UNITED STATES.
No. 679, OCTOBER TERM, 1920.
AMERICAN BANK AND TRUST COMPANY
Appeal from the
United States
Circuit Court
of Appeals for
the Fifth CirFEDERAL RESERVE BANK OF ATLANTA,
cuit.
Georgia, et al.
et al., appellants.
(May 16, 1921.)
Mr. Justice Holmes delivered the opinion of the court.
This is a bill in equity brought by country banks incorporated by the State of Georgia against the Federal Reserve Bank of Atlanta, incorporated under the laws of
the United States, and its officers. It was brought in a
FEDERAL EESERVE BULLETIN.
State court but removed to the district court of the United
States on the petition of the defendants. A motion to
remand was made by the plaintiffs but was overruled.
The allegations of the bill may be summed up in comparatively few words. The plaintiffs are not members of
the Federal Reserve System and many of them have too
small a capital to permit their joining it—a capital that
could not be increased to the required amount in the
thinly populated sections of the country where they
operate. An important part of the income of these small
institutions is a charge for the services rendered by them
in paying checks drawn upon them at a distance and
forwarded, generally by other banks, through the mail.
The charge covers the expense incurred by the paying
bank and a small profit. The banks in the Federal
Reserve System are forbidden to make such charges to
other banks in the system. (Federal Reserve Act of Dec.
23,1913, ch. 6, sec. 13; 38 Stat., 263; amended Mar. 3,1915,
ch. 93; 38 Stat., 958; Sept. 7, 1916, ch. 461; 39 Stat., 752;
and June 21, 1917, ch. 32, sees. 4, 5; 40 Stat., 234, 235.)
It is alleged that in pursuance of a policy accepted by the
Federal Reserve Board the defendant bank has determined to use its power to compel the plaintiffs and others
in like situation to become members of the defendant, or
at least to open a nonmember clearing account with
defendant, and thereby under the defendant's requirements, to make it necessary for the plaintiffs to maintain
a much larger reserve than in their present condition they
need. This diminution of their lending power, coupled
with the loss of the profit caused by the above mentioned
clearing of bank checks and drafts at par, will drive some
of the plaintiffs out of business and diminish the income
of all. To accomplish the defendant's wish they intend
to accumulate checks upon the country banks until they
reach a large amount and then to cause them to be presented for payment over the counter or by other devices
detailed to require payment in cash in such wise as to
compel the plaintiffs to maintain so much cash in their
vaults as to drive them out of business or force them, if
able, to submit to the defendant's scheme. It is alleged
that the proposed conduct will deprive the plaintiffs of
their property without due process of law contrary to the
fifth amendment of the Constitution and that it is ultra
vires. The bill seeks an injunction against the defendants
collecting checks except in the usual way. The District
Court dismissed the bill for want of equity and its decree
was affirmed by the Circuit Court of Appeals (Nov. 19,
1920). The plaintiffs appealed, setting up want of jurisdiction in the District Court and error in the final decree.
We agree with the court below that the removal was
proper. The principal defendant was incorporated under
the laws of the United States and that has been established
as a ground of jurisdiction since Osborne v. Bank of the
United States (9 Wheat., 738; Pacific Railroad Removal
Cases, 115 U. S., 1. Matter of Dunn, 212 U. S., 374).
We shall say but a word in answer to the appellants'
argument that a suit against such a corporation is not a
suit arising under those laws within section 24 of the
Judicial Code of March 3, 1911 (c. 231; 36 Stat., 1087).
The contrary is established and the accepted doctrine is
intelligible at least since it is part of the plaintiffs' case
that the defendant bank existed and exists as an entity
capable of committing the wrong alleged and of being
sued. These facts depend upon the laws of the United
States. (Bankers Trust Co. v. Texas & Pacific Ry. Co.,
241 U. S., 295, 306, 307; Texas & Pacific Ry. Co. v. Cody,
166 U. S., 606. See further Smith v. Kansas City Title &
Trust Co., Feb. 28, 1921.) A more plausible objection is
that by the Judicial Code, section 24, sixteenth, except
as therein excepted, national banking associations for the
purposes of suits against them are to be deemed citizens
of the States in which they are respectively located. But
we agree with the court below that the reasons for localizing
ordinary commercial banks do not apply to the Federal
Reserve Banks created after the Judicial Code was enacted
and that the phrase "national banking associations" does
lot
not reach forward and include them. That phrase is used
to describe the ordinary commercial banks, whereas the
others are systematically called "Federal Reserve Banks."
We see no sufficient ground for supposing that Congress
meant to open the questions that the other construction
would raise.
On the merits we are of opinion that the courts below
went too far. The question at this stage is not what the
plaintiffs may be able to prove, or what may be the reasonable interpretation of the defendants' acts, but whether
the plaintiffs have shown a ground for relief if they can
prove what they allege. We lay on one side as not necessary to our decision the question of the defendants' powers,
and assuming that they act within them consider only
whether the use that according to the bill they intend to
make of them will infringe the plaintiffs' rights. The
defendants say that the holder of a check has a right to
present it to the bank upon which it was drawn for payment over the counter, and that however many checks
he may hold he has the same right as to all of them and
may present them all at once, whatever his motive or
intent. They ask whether a mortgagee would be prevented
from foreclosing because he acted from disinterested
malevolence and not from a desire to get his money. But
the word "right" is one of the most deceptive of pitfalls;
it is so easy to slip from a qualified meaning in the premise
to an unqualified one in the conclusion. Most rights are
qualified. A man has at least as absolute a right to give
his own money as he has to demand money from a party
that has made no promise to him; yet if he gives it to
induce another to steal or murder the purpose of the act
makes it a crime.
A bank that receives deposits to be drawn upon by check
of course authorizes its depositors to draw checks against
their accounts and holders of such checks to present them
for payment. When we think of the ordinary case the
right of the holder is so unimpeded that it seems to us
absolute. But looked at from either side it can not be so.
The interests of business also are recognized as rights, protected against injury to a greater or less extent, and in case
of conflict between the claims of business on the one side
and of third persons on the other, lines have to be drawn
that limit both. A man has a right to give advice, but
advice given for the sole purpose of injuring another's
business and effective on a large scale might create a cause
of action. Banks, as we know them, could not exist if
they could not rely upon averages and lend a large part
of the money that they receive from their depositors on
the assumption that not more than a certain fraction of it
will be demanded on any one day. If without a word of
falsehood, but acting from what we have called disinterested malevolence, a man by persuasion should organize
and carry into effect a run upon a bank and ruin it, we
can not doubt that an action would lie. A similar result,
even if less complete in its effect, is to be expected from
the course that the defendants are alleged to intend, and
to determine whether they are authorized to follow that
course it is not enough to refer to the general right of a
holder of checks to present them, but it is necessary to
consider whether the collection of checks and presenting
them in a body for the purpose of breaking down the
petitioner's business as now conducted is justified by the
ulterior purpose in view.
If this were a case of competition in private business, it
would be hard to admit the justification of self-interest
considering the now current opinion as to public policy
expressed in statutes and decisions. But this is not private business. The policy of the Federal Reserve Banks
is governed by the policy of the United States with regard
to them and to these relatively feeble competitors. We
do not need aid from the debates upon the statute under
which the Reserve Banks exist to assume that the United
States did not intend by that statute to sanction this sort
of warfare upon legitimate creations of the States.
Decree reversed.
702
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
PRICE MOVEMENT AND VOLUME OF TRADE.
WHOLESALE PRICES IN THE UNITED STATES.
In the United States wholesale prices in general declined 5 per cent in April as compared
with 3 per cent in March, according to the index number of the Bureau of Labor Statistics,
based upon approximately 315 different price quotations, and that of the Federal Reserve
Board, based upon 90 quotations. The grouping of the Federal Reserve Board index shows
that raw materials are lower than manufactured goods (when compared with the prewar level),
that goods which we import are almost down to 1913 values, and that goods which we exporthave been considerably more reduced than domestic commodities as a whole. The regrouping
of the index of the Bureau of Labor Statistics shows that within the raw materials group
animal products (including hides, wool, and silk as well as live stock) are only slightly above
prewar prices, that agricultural commodities, such as grains, cotton, and tobacco, are about
25 per cent above prewar values, while forest 1and mineral products are at 207 and 190, respectively, as compared with a 1913 level of 100.
h-:$ The second table below shows the index number of the Bureau of Labor Statistics, which is
based upon approximately 315 quotations, as reclassified by the Federal Reserve Board. The raw
materials group consists of approximately 76 quotations, the producers' goods of about 80,
and the consumers' goods of 158. Raw materials have been subclassified into agricultural
products (mainly grains, cotton, and tobacco), based upon 19 quotations, animal products
based upon the same number, forest products based upon 11 quotations, and mineral products
based upon 27 quotations. The FEDERAL RESERVE BULLETIN for October, 1918, contains a
list of the commodities in each group. The weights are the same as those used by the Bureau
of Labor Statistics.
During the past month several changes have been made in commodities and weights used
in the construction of the Federal Reserve Board index. These changes were made in order
to obtain more representative quotations or better balance between different commodity lines.
Most important among them is the change from contract prices of bituminous and semibituminous coal to spot prices. Although the majority of sales of coal are made on the contract
basis, this type of quotation is not satisfactory for a current wholesale price index, because
the contracts are usually made in April for the following year and all further trading is done
on a spot basis. In normal times the spot price may be expected to be lower than the contract
price in the summer and higher in the winter. The price which is being used in the index
number is an average of the spot prices of 18 different kinds of bituminous and semibituminous
coals in 12 markets. It is compiled weekly by the Coal Age and can be obtained on a comparable basis from 1913 to date (see War Industries Board Price Bulletin No. 35). It is being
substituted in the index for bituminous, run of mine, Pittsburgh, and semibituminous,Pocahontas. The other price changes have been made with a view to giving representation to lines not
satisfactorily represented before. For that reason a quotation for export tobacco, fired dark, new
crop at Louisville has been added, also a low-priced grade of men's shoes, tan side, dress welt,
at Boston, and a cheap grade of woolen cloth, serge, 9J-oz., A 209J, 55/57, New York.
1
The index number of the Federal Reserve Board has been constructed primarily with a view to international comparisons of wholesale prices.
Due to the difficulties connected with the collection of foreign prices, the foreign index numbers are still incomplete, but in spite of this it has
seemed advisable to publish the American number, since it contains certain classifications of commodities not otherwise available, namely, the
prices of the important goods imported into this country, and of goods largely exported, and compares them with the general price level in the
United States. The number has been published monthly during a period of one year but is computed for the years 1913, 1919, and thefirstof
1920 as well.
For detailed information regarding the makeup of the number, reference may be made to the FEDERAL RESERVE BULLETIN for May. 1920,
pages 499-503. The commodities included in the different groups are listed there with exact specifications and markets indicated. The "weights"
assigned to the different commodities in constructing the index numbers are also given in detail. Revisions in prices or weights appear in
BULLETINS for June, 1920, and June, 1921.
The index of "goods produced" consists of 74 quotations (30 raw materials, 24 producers' and 20 consumers' goods). These include agricultural
products (such as grains, live stock, and textiles), minerals, and lumber, among the raw materials; yarns, leather, semifinished steel products,
refined oils, chemicals, building materials, etc., among the producers' goods; and potatoes, meats, flour, rice, dairy products, cotton and woolen
cloth, boots and shoes, and kerosene among the consumers' goods.
The index of "goods imported" consists of 18 quotations (9 raw materials, 7producers' and 2 consumers' goods). It includes Egyptian cotton,
Australian and South American raw wool, Japanese and Chinese silk, South American hides, Straits tin, and Canadian lumber among the raw
materials; plantation and Para rubber, Chilean nitrate, cane sugar, burlap, sisal, etc., among producers' goods; and tea and coffee for consumers'
goods.
Leading American exports are included in the index of prices of "goods exported," which is made up of 40 quotations (17 raw materials, 12
producers' and 11 consumers' goods). Grains, tobacco, cotton, copper, coal, pig iron, petroleum, and lumber make up the list of raw materials;
vegetable oils, leather, semifinished metal products, refined oils, and chemicals the producers' goods; and wheatflour,refined sugar, pork products,
coffee, cotton cloth, boots and shoes, and kerosene the consumers' goods.
The index numbers of "raw materials," "producers' goods," and "consumers' goods" consist of the commodities mentioned above which fall
into these classes, whether they are of domestic or foreign origin. The raw materials group includes 39 quotations, the producers' goods 29,
and the consumers' goods 22.
The "all commodities" index is obtained by combining the group indexes of domestic and foreign goods. It consists of 90 different quotations.
The quotations are obtained from representative trade journals and private firms. About half of them are the same that are used by the
Bureau of Labor Statistics in its larger compilation of prices and are furnished to the Board by that bureau.
JUNE, 1921.
703
FEDERAL RESERVE BULLETIN.
In the case of three commodities it has seemed advisable to increase the production
"weights" applied to them in the construction of the index number, in order to give larger
representation to these industries than was the case before. The new weight for lumber (see
FEDERAL RESERVE BULLETIN, May, 1920, p. 500), in the classification of Iraw materials
produced, is 84,000,000 M feet; for tobacco, in the classification of consumers77 goods produced,
is 1,043,000,000 pounds; for cotton cloth, in the classification of consumers goods produced,
is 11,300,000,000 yards.
It has been found that one of the subgroups in the Federal Reserve Board index—namely,
that showing the prices of goods consumed here—moves in substantially the same way as the
all-commodities index. The difference between the two numbers is merely that resulting from
a difference in weighting. For that reason it has been decided to eliminate this group.
INDEX NUMBERS OF WHOLESALE PRICES IN UNITED STATES—CONSTRUCTED BY THE FEDERAL RESERVE BOARD
FOR THE PURPOSE OF INTERNATIONAL COMPARISON.
[Average price for 1913=100.]
Date.
Average for the year
April
May
June
July
August
September
October
November
December
Goods
produced.
Goods
imported.
Goods
exported.
Raw
materials.
236
265
266
260
253
238
231
213
195
178
191
242
246
226
208
182
164
142
127
112
227
264
262
256
248
229
211
181
163
146
235
263
263
258
249
237
233
211
192
176
237
274
274
265
251
235
225
209
190
171
229
257
261
255
250
229
218
203
187
171
233
263
264
258
250
234
226
208
190
173
166
156
152
145
114
113
114
109
142
135
125
121
164
152
146
136
166
158
153
148
159
152
151
147
163
154
150
143
Producers' Consumers'
goods.
goods.
All commodities.
1920.
1921.
January
February
March
April
INDEXNUMBERS OFWHOLESALE PRICES IN WE UNITED STATES, I9I9-I92L
AVERA6E PRICE LEVEL OF 1913^100.
— Jill Commodities.
— Ooodsimportzd
•»• Ooods exported. *
300
3focbu:ers'(hod$.
•—
Consumers'Ooods. •••»••••••
300
Z80
280
260
260
340
220
lu
-t
200
180
\ \
—
160
\
MO
%
i
x
\
240
220
200
ISO
=,
160
140
S
120
120
W
100
SO
30
60
60
40
40
20
20
O
•
1919
J92O
1921
%
lew
1 SEPT.
xjuur
•
1 i 1 i i 1 $1
1320
\ \ %\
§i
0
704
KEBERVE BULLETIN.
JUNE, i 9 2 i .
INDEX NUMBERS OF WHOLESALE PRICES IN THE UNITED STATES FOR PRINCIPAL CLASSES OF COMMODITIESBUREAU OF LABOR STATISTICS.
[Average price for 1913=100.]
Raw materials.
Year and month.
All commodities
Producers' Consumers' (Bureau of
goods.
Labor Stagoods.
tistics index
number).
Agricultural
products.
Animal
products.
Forest
products.
304
314
301
287
259
232
191
170
155
196
179
186
184
181
186
172
159
132
367
367
363
359
351
344
339
289
278
224
234
245
256
265
277
272
246
224
260
260
261
258
251
248
230
205
186
263
271
262
251
238
224
209
193
175
280
285
279
272
250
240
224
214
196
265
272
269
262
250
242
225
207
155
145
136
126
119
114
116
106
245
227
212
207
220
207
197
190
175
165
158
150
169
161
149
143
182
171
167
159
178
167
162
154
Mineral
products.
Total raw
materials.
1920,
April
May
June
July
August
September
October
November
December
1921.
January
February
March
April
In order to give a more concrete illustration table have been obtained from the records of
of actual price movements, there are also the United States Bureau of Labor Statistics,
presented in the following table monthly actual except in the case of bituminous coal, prices
and relative figures for certain commodities of for which have been furnished by the Coal
a basic character. The prices shown in the Age.
AVERAGE MONTHLY WHOLESALE PRICES OF COMMODITIES.
[Average price for 1913=100.]
Corn, No. 3,
Chicago.
Cotton, middling,
New Orleans.
Wheat,. N o . 1,
northern spring,
Minneapolis.
Wheat, No. 2,
red winter,
Chicago.
Cattle, steers,
good to choice,
Chicago.
Hides, packers,
heavy native'
steers, Chicago.
Year and month.
1913
1919
Average
price per
bushel.
Relative
price.
Average
price per
pound.
Relative
price.
Average
price per
bushel.
Relative
price.
Average
price per
bushel.
Relative
price.
Average
price per
100
pounds.
Relative
price.
$0.6155
1.5800
100
257
$0.1270
.3185
100
251
$0.8735
2.5660
100
294
$0.9863
2.5370
100
239
S8.5072
17.4957
100
206
$0.1839
.3931
100
214
1.3968
1.6913
1.9825
1.8390
1.5388
1.5310
1.2938
.8778
.8003
.7341
227
275
322
299
250
249
210
143
130
119
.3301
.4144
.4038
.4030
.3950
.3380
.2706
.2088
.1780
.1444
260
326
318
317
311
266
213
164
140
114
2.5581
3.0063
3.0750
2.9000
2.8313
2.5500
2.4903
2.1063
1.7528
1.6809
293
344
352
332
324
292
285
241
201
192
2.5225
2.7725
2.9750
2.8950
2.8050
2.4735
2.4919
2.2047
2.0570
2.0125
256
281
302
294
284
251
253
224
209
204
14.4856
13.9063
12.6000
15.0313
15.3813
15.3500
15.2500
14.6875
14.5750
12.0938
170
163
148
177
181
180
179
173
171
142
.3122
.3613
.3538
.3410
.2944
.2850
.2840
.2550
.2325
.1900
170
196
192
185
160
155
154
139
126
103
.6553
.6350
.6180
.5547
106
103
100
90
.1450
.1322
.1105
.1116
114
104
87
1.7884
1.6713
1.6135
1.4059
205
191
185
101
1.9613
1.9194
1.6798
1.3869
199
195
170
141
9.8400
9.3125
9.5625
8.7188
116
109
112
102
.1675
.1363
.1150
.1013
91
74
63
55
Average
price per
pound.
Relative
price.
1920.
Average for the year
April
May
June
July
August
September
October
,
November
,
December
1921.
January
February
March
April
705
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
AVERAGE MONTHLY WHOLESALE PRICES OF COMMODITIES-Continued.
[Average price for 1913=100.]
Hogs, light,
Chicago.
Year and month.
1913.
1919.
1920.
Average for the year
April
May
June
July.
August
September.
October....
November..
December..
January..
February.
March
April
Wool, Ohio, i - |
grades, scoured,
Eastern markets.
Hemlock, New
York.
Yellow pine,
flooring,
New York.
Average
Average
Average Rela- Average Rela- price per Rela- Average Rela- Average Relaprice per Relative
Mfeet
price
per
tive price per tive price per tive
tive
price
per
tive
100
price. short ton. price. short ton. price.
pounds. price. pound. price. Mfeet. price. manufactured.
$8.4541
18.3260
100
217
$0.4710
1.1894
14.7106
15.7125
I 14.7550
I 15.3500
15.8875
15.7350
17.0688
14.7875
12.1400
9.6625
174
186
175
182
188
186
202
175
144
114
9.6700
9.7063
10.3063
8. 8563
114
115
122
105
100 $24.2273
248 39.7500
100 $44.5909
164 78.8333
100
177
$1.3200
100
.9712
1.2000
1.1636
1.0000
.9091
.8727
.8364
.7273
.6909
.5455
203
255
247
212
193
185
178
154
147
116
56.6667
57.0000
57.0000
57.0000
57.0000
57.0000
57.0000
57.0000
57.0000
57.0000
234
235
235
235
235
235
235
235
235
235
145.4167
160.0000
160.0000
160.0000
160.0000
157.0000
157.0000
152.0000
124.5000
124.5000
326
359
359
359
359
352
352
341
279
279
6.0433
3.5900
4.4200
8.6700
10.0000
10.6300
10.4700
8.7500
5.1900
3.7500
.5455
.5455
.5273
.5273
116
116
112
112
48.0000
48.0000
48.0000
41.0000
198 110.0000
198 95.0000
198 95.0000
169 91.0000
247
213
213
204
2.5300
2.4200
2.2900
2.2500
Coal, anthracite, Coke, Connellsstove, New York, ville,
at furnace.
tidewater.
Copper, ingot,
electrolytic,
New York.
Lead, pig,
desilverized,
• New York.
Year and month.
Average Rela- Average Rela- Average
price per tive price per tive price per
long ton. price. short ton. price. pound.
1913
1919
1920.
Average for the year
April
May
June
July
August
September
October
November
December'
1921.
January
February
March
April
100
161
$2.4396
4.7375
100
194
$0.1573
.1911
100
122
9.4265
8.4368
8.9964
9.3672
9.4580
9.6087
10.4363
10.4732
10,5417
10. 5479
186
167
178
185
187
190
206
207
208
208
10.8163
10.5000
12.0000
14.3000
14.3750
15.5500
15.3125
14.3125
8.8500
6.2375
443
430
492
586
589
637
628
587
363
256
.1797
.1919
.1906
.1900
.1900
.1900
.1869
.1675
.1455
.1369
114
122
121
121
121
121
119
106
92
87
10. 6373
10.6382
10.6382
10.1380
210
210
210
200
5.5313
5.1875
5.0000
3.7188
227
213
205
152
.1288
.1288
.1223
.1247
1913.
1919.
Average
priceper
pound,
Leather, sole,
hemlock, N o.l,
Chicago.
$1.5710
100
458
272
335
657
758
805
793
663
393
284
5.8891
4.0700
6.4700
7.0000
7.9000
8.6300
8.6600
8.3100
7.3800
5.2000
375
259
412
446
503
549
551
529
470
331
192
183
173
170
4.2500
3.7300
3.4000
3.3625
271
237
216
214
iron, basic,
Petroleum, crude, Pig
Mahoning and
Pennyslvania, Shenango
Valley,
at wells.
at furnace.
Steel billets,
Bessemer,
Pittsburgh.
100
131
$2.4500
4.1346
184
204
195
193
195
204
185
166
143
109
5.9750
6.1000
6.1000
6.1000
6.1000
6.1000
6.1000
6.1000
6.1000
6.1000
.0497
113
.0468
106
92
.0405
97
.0428
Steel plates,
tank, Pittsburgh.
5.7750
4.1875
3.0000
3.1875
$0.0440
.0578
.0856
.0816
.0731
.0628
.0478
100 $14.7058
169 27.6971
100
188
244
249
249
249
249
249
249
249
249
249
42.2692
42.5000
43.2500
44.0000
45.7500
48.1000
48.5000
43.7500
36.5000
33.0000
287
289
294
299
311
327
330
298
248
224
236
171
122
130
30.0000
27.5000
24.2000
22.8750
204
187
165
156
Steel rails,
open hearth,
Pittsburgh.
Worsted yarns,
2-32's crossbred,
Philadelphia.
Rela- Average Rela- Average Rela- Average Rela- Average Rela- Average Relative price per tive price per tive price per tive price per tive price per tive
price. pound. price. long ton. price. pound. price. long ton. price. pound. price.
100
241
$0.2821
.5283
1920.
282
.5342
Average for the year.
.6245
352
.5700
April
.7784
347
.5700
May
.7672
330
.5700
June
.7299
317
.5700
July
,
.7009
285
.5500
August
I
.6310
245
.5100
September
. 5429
196
.4900
October
.4343
167
.4700
November
.3695
140
.4100
December
.3108
1921.
.2878
130
.4000
January...
.3800
.2775
125
February..
.3700
.2447
111
March
.3700
.2388
108
April
i On Toledo market, average for last six months of 1913.
1
Rela- Average Rela- Average Rela- Average Relative price per tive price per tive price per tive
price. pound. price. barrel. price. long ton. price.
$5.0613
8.1639
Cotton yarns,
northern cones,
10/1, Boston.
Year and month.
Coal, bituminous, Coal, bituminous,
run of mine, f. o.b. Pocahontas,f. o. b.
spot at mines,
spot at mines,
Pittsburgh.
Columbus.
$0.7767
1.6274
100
210
100 $30.0000
183 49.2642
100
164
.0328
.0375
.0375
.0355
.0338
.0325
.0325
.0309
.0281
.0265
222
253
253
240
228
220
220
209
190
179
53.8269
54.5000
54. 5000
54.5000
54. 5000
54. 5000
54.5000
54. 5000
54. 5000
50.5000
179
182
182
182
182
182
182
182
182
168
1.8250
2.2000
2.0000
2.0000
1. 7500
1.7500
1.6000
1.5000
1.3000
1.1000
235
283
258
258
225
225
206
193
167
142
.0265
.0233
.0204
.0210
179
157
138
142
47.0000
47.0000
47.0000
47.0000
157
157
157
157
1.1500
1.1500
1.2000
1.2000
148
148
155
155
100 $25.7892
187 40.5385
100
157
$0.0148
.0271
189
202
202
202
202
195
181
174
167
145
56.2596
60.0000
60.0000
60.0000
62.5000
61.0000
58.7500
55.0000
49.7000
43. 5000
218
233
233
233
242
237
228
213
193
169
142
135
131
131
43.5000
42.2500
38.4000
37.5000
169
164
149
145
706
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
AVERAGE MONTHLY WHOLESALE PRICES OF COMMODITIES—Continued.
[Average price for 1913=100. J
Beef, carcass,
good native
steers, Chicago.
Year and month.
Flour, wheat,
patents
Coffee, Rio, No. 7, standard
(1918,
standard
New York.
war),
Minneapolis.
Hams, smoked,
Chicago.
Illuminating oil,
150° fire test,
New York.
Sugar,
granulated,
New York.
Average Rela- Average Rela- Average Rela- Average Rela- Average Rela- Average Relaprice per tive price per tive price per tive price per tive price per tive price per tive
pound. price. pound. price. barrel. price. pound. price. gallon. price. pound. price.
1913
1919
$0.1295
.2333
100
180
$0.1113
.1785
100
160
$4.5837
11.9982
100
262
$0.1662
.3433
100
207
$0.1233
.2004
100
163
$0.0427
.0894
100
209
. 2304
.2090
.1950
.2225
.2550
.2550
.2600
.2520
.2400
.2220
178
161
151
172
197
197
201
195
185
171
.1198
.1514
.1559
.1498
.1306
.0936
.0819
.0759
.0746
.0656
108
136
140
135
117
84
74
68
67
59
12.6750
14.2813
15.0313
14.1600
13.6688
12.2350
12. 5938
11.2063
9.2950
8.9438
277
312
328
309
298
267
275
244
203
195
.3340
.3313
.3556
.3650
.3769
.3725
.3634
.3575
.3065
.2575
201
199
214
220
227
224
219
215
184
155
.2629
.2600
.2600
.2600
.2600
.2600
.2750
.2900
.2900
.2900
213
211
211
211
211
211
223
235
235
235
.1267
. 1919
.2247
.2120
.1910
.1490
.1426
.1078
.0962
.0809
297
449
526
497
447
349
344
252
225
189
.1738
.1600
.1625
.1650
134
124
125
127
.0669
.0672
.0639
.0600
60
60
57
54
9.6250
9.1813
8.7300
7.9500
210
200
190
173
.2488
.2600
.2725
.2763
150
156
164
166
.2900
.2750
.2625
.2540
235
223
213
206
.0757
.0709
.0784
.0725
177
166
184
170
1920.
Average for the year
April
May
June
July
August
September
October
November. •
December
January .
February
March
April
1921.
...
FOREIGN TRADE INDEX.
There is presented below a series of indexes
designed to reflect movements in foreign trade
of the United States, with fluctuations due to
price changes eliminated. The commodities
chosen for these indexes are those for which
prices are compiled by the Federal Reserve
Board in the preparation of its international
price index. The list includes 25 of the most
important imports, the value of which in 1913
formed 47.7 per cent of the total import values,
and 29 of the most important exports, the value
of which in 1913 formed 56.3 per cent of the
total export values. The classification of the
original list of commodities used was given in
the July, 1920, BULLETIN. A classification of
the 11 additional commodities of imports was
given in the April, 1921, BULLETIN.
Total exports registered a decline during
April for the fourth successive month, but this
decline was less precipitate than in the three
preceding months. Raw materials continued
to be the leading factor in this decline, while
cotton was the most important commodity
affected. Exports of raw cotton in April were
little more than 50 per cent of the exports of
January, while exports of cottonseed oil, a producers product, were only about 30 per cent
as large in April as in January. Total exports
of consumers' goods showed little change in
April, although there was a marked decline in
the exports of lard.
The upward movement in imports which has
been noticeable in recent months was checked
during April. There was a decrease in the imports of raw materials, due primarily to a considerable decline in wool imports from the
abnormally high level reached in March. This
was partly counterbalanced by a sharp increase
in the imports of raw silk. Imports of consumers' goods showed a slight decline during
April, although imports of coffee continued to
show an increase for the fourth successive
month.
707
FEDERAL RESERVE BULLETIN.
JUNEJ, 1921.
VALUE OF EXPORTS AND IMPORTS OF SELECTED COMMODITIES AT 1913 PRICES.
[In thousands of dollars; i. e., 000 omitted.]
[Monthly average values, 1913=100.]
Imports.
Exports.
Raw materials
(12 commodities).
Value.
100,027
71,074
61,681
71,446
68,856
46,963
51,325
74,869
103,614
137,772
126,836
113,326
Year.. 1,027,789
1919.
84,066
January
February... 58,488
57,659
March
65,112
April
67,595
May
98,335
June
71,917
July
81,250
August
September.. 70,285
70,322
October
November.. 99,552
December.. 89,584
Year.. 914,165
1920.
January
February...
March
April
May
June
July
August
September.
October...
November.
December..
93,142
70,150
90,779
68,039
63,650
55,200
66,924
67,225
70,699
101,708
95,148
104,828
Year.
947,501
1921.
January
February..
March
April
90,063
77,922
66,934
65,569
Total (29 commodities).
Raw materials
(10 commodities).
Consumers'
Producers'
goods (12 com- goods (3 commodities).
modities).
Total (25 commodities).
Index
number.
Value.
Index
number.
Value.
Index
number.
Value.
Index
Index
num- Value. number.
ber.
Value.
Index
number.
Value.
number.
Value.
116.8
83.0
72.0
83.0
80.4
54.8
59.9
87.4
120.9
160.9
148.1
132.3
11,762
12,266
11,836
14,128
11,661
11,612
11,109
11,547
10,622
12,608
9,987
10,053
101.4
105.8
102.1
121.8
100.6
100.1
95.8
99.5
91.6
108.7
86.1
86.7
30,715
30,790
28,698
28,708
29,923
28,242
27,686
29,370
32,190
34,612
31,246
33,089
100.9
101.2
94.3
94.3
98.3
92.8
91.0
96.5
105.8
113.8
102.7
108.7
142,504
114,130
102,215
114,282
110,440
86,817
90,120
115,786
146,426
184,992
168,069
156,468
111.6
89.4
80.1
89.5
86.5
68.0
70.6
90.7
114.7
144.9
131.6
122.5
61,347
55,332
55,555
52,271
50,089
40,822
40,298
42,470
52,659
44,407
48,107
60,904
40,107
41,060
45,753
42,346
38,409
38,606
35,990
37,385
41,184
22,721
28,788
31,929
108.3
110.9
123.6
114.4
103.7
104.3
97.2
101.0
111.2
61.4
77.8
86.2
14,219
14,335
13,378
10,896
7,718
8,382
9,698
11,078
15,883
15,929
15,059
21,446
108.0
108.9
101.6
82.7
58.6
63.7
73.6
84.1
120.6
121.0
114.4
162.9
115,673
110,727
114,686
105,513
96,216
87,810
85,986
90,933
109,726
83,057
91,954
114,279
115.1
110.1
114.1
104.9
95.7
87.3
85.4
90.4
109.2
82.6
91.5
113.7
100.0 1,206,560
100.0
108.1
109.6
191.6
143.3
188.8
140.6
224.0
159.1
191.7
154.8
161.4
163.4
112,057
128,712
162,716
170,271
196,025
166,654
193,336
148,656
218,797
194,236
199,142
173,372
111.4
128.0
161.8
169.3
195.0
165.7
192.3
147.8
217.6
193.2
198.1
172.4
161.4 2,063,974
171.1
182.7
151.4
197.4
220.8
113.1
163.0
186.5
171.8
130.8
133.8
111.0
101.8
218,477
214,308
248,419
213,863
163,198
192,387
179,414
178,811
129,777
111,162
119,636
102,603
217.3
213.1
247.1
212.7
162.3
191.8
178.1
177.6
129.0
110.0
119.0
102.0
155.3 2,072,130
171.7
105,253
133,804
174,167
170,233
104.7
133.1
173.2
169.3
1913.
January
February...
March
April
May
June
July
August
September..
October
November..
December..
Consumers'
Producers'
goods (10 com- goods (7 commodities).
modities).
100.0 139,191
98.2
68.3
67.3
76.0
78.9
114.8
84.0
94.9
82.1
82.1
116.2
104.6
18,444
14,598
16,161
19,356
15,972
28,618
17,150
19,574
19,359
17,182
15,735
13,208
88.9 215,357
108.7
81.9
106.0
79.4
74.3
64.5
78.1
78.5
82.5
118.7
111.1
122.4
15,647
14,201
17,259
17,109
17,546
14,663
19,138
15,708
13,883
17,649
14^123
21,577
92.2 198,457
105.2
91.0
78.2
76.6
21,797
16,349
12, 111
11,914
100.0 365,269
159.0
125.9
139.3
166.9
137.7
247.1
147.9
168.8
166.9
148.1
135.7
113.9
56,748
53,338
61,585
80,639
58,731
96,088
52,553
49,194
43,342
45,844
46,729
43,571
154.7 688,362
134.9
122.4
148.8
147.1
151.3
126.4
165.0
135.4
119.7
152.2
121.8
186.0
35,377
41,645
56,612
51,486
62,457
46,113
43,325
28,594
28,599
37,859
33,996
37,536
142.6 503,802
187.9
141.0
104.4
102.7
38,356
35,433
37,243
37,273
121.9
110.0
110.4
103.9
99.5
81.1
80.1
84.4
104.6
88.2
95.6
121.0
[ndex
100.0 158,021
100.0 1,532,249
100.0 604,261
100.0 444,278
186.4
175.2
202.3
264.9
192.9
315.1
172.7
161.6
142.4
150.6
153.5
143.1
159,258
126,424
135,405
165,107
142,298
223,041
141,620
150,018
132,986
133,348
162,016
146,363
124.7 44,552
99.0 47,774
106.1 54,947
129.3 63,385
111.4 81,274
174.7 86,256
110.9 86,443
117.5 85,571
104.1 123,524
104.4 99,114
126.9 98,690
114.6 79,965
88.5
94.9
109.2
125.9
161.4
171.4
171.7
169.9
245.3
196.8
196.1
158.9
188.5 1,817,884
118.6 951,495
157.5 857,504
193.0 254,975
116.2
136.8
186.0
169.1
205.2
151.5
142.4
94.0
94.0
124.4
111.7
123.3
144,166
125,996
164,650
136,634
143,653
115,976
129,387
111,527
113,181
157,216
143,267
163,941
112.9 103,782
98.7 87,210
128.9 97,011
107.0 87,617
112.5 64,177
90.8 75,225
101.3 60,942
87.3 61,321
88.6 51,388
123.1 44,866
112.2 43,436
128.4 39,963
206.1 90,633
173.2 107,162
192.7 125,409
173.9 97,187
127.5 84,134
149.5 95,699
121.0 93,910
121.8 94,866
102.1 61,163
89.1 48,683
86.3 61,590
79.4 49,239
244.8
289.5
339.0
262.5
227.2
258.5
253.7
256.2
165.2
131.5
166.4
133.0
137.9 1,649,760
107.7 816,909
135.2 1,009,762 227.3 245,459
126.0
116.4
122.4
122.5
117.6
101.6
91.1
89.9
74.5
118.2
160.7
153.4
150,216
129,704
116,288
114,756
37,523
59,514
80,926
77,294
53,071
66,708
82,546
88,017
89,890
61,886
77,401
42,132
70,033
74,736
79,198
71,886
48,442
53,111
65,681
65,777
143.3
180.2
223.0
237.7
242.8
167.2
209.1
113.8
189.2
201.9
213.9
194.2
130.8
143.5
177.4
177.7
14,434
14,230
25,223
18,869
24,861
18,512
29,492
20,953
25,240
20,386
21,254
21,521
24,062
19,936
25,999
29,076
14,887
21,463
24,562
22,624
17,226
17,613
14,610
13,401
19,288
21,179
27,560
27,162
146.5
160.8
209.3
206.3
Index
number.
PHYSICAL VOLUME OF TRADE.
In continuation of tables in the May, 1921,
FEDERAL RESERVE BULLETIN, there 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.
The textile industry, as a whole, showed some
further gain during April. Cotton consump-
tion decreased slightly, but there was an increase in the number of spindles active during
the month. There was a further considerable
decline in the percentage of idle wool machinery. Imports of raw silk were over twice as
large as in March and much larger than in
April, 1920.
Production of bituminous coal declined during April for the fourth consecutive month,
whereas anthracite coal production showed a
slight increase. The output of beehive coke
continues to decrease and is now at a very
708
FEDERAL RESERVE BULLETIN.
MOVEMENT0)
AGRICULTURAL PROL
1919-1921
COAL AND PETROLEUM
1919-1921
jCiveStodCSZeceipbs
_ « . _ Grain and, Jfour'Sitece^
Cotton SightJteceipts
INDEXNUMBERS. AVERA6EI9fl
-iei3=joo
200
:\
180
rI
160
140
120
!OO
: \
I
/ / :\
\\
i
l§
80
\i
t
N
2O0
180
180
h 3r M
A
120
t\
W
i
?
2O
0
r
"
160
V
1
140
i
100
r
>
/
/
/A
140 v
120 *.\\\
w
V\
W
80
V
40
40
20
20
20
0
0
\ \
11
it
it
ii
1919
1920
60
132!
0
TEXTILES
1919-1921.
Cotton Consumption,
Wool Consumption*
——
MILLIONS OF POUNDS
200
*
ISO
\
160
\
140
A
r-
1
\
\
120
\
100
\
80
40
40
20
20
80
40
60
1919
too
60
60
0
120
JUU
r
•
160
Vr
\A
1919 -1921
'•
S%gIronProduction
SteellngotJl'odtjLctwTi
IMOledOrders, U.S.StelCorporaJtioit •••••
-1913=100.
INDEXNUMBERS. AVERA6EI3II
180
-T'
V
IRON AND STEE'L
200
MO
60
1921
1920
120
i
i
SO
V
1919
160
180
•••
i
80
/
40
200
§
1
\
Vji
60
200
MO
•
^V/
— — JlnthracUe CoalJrvdacfion, •
——— bituminous (balShdctctzon,«—-—-'''Crad6^^oleam,3xUxctwfo
INDEX NUMBERS. AVERA6E1611-1613=JOO.
160
«»
j. .
JUNE, 1921.
1920
1921
0
280
260
240
220
200
180
160
MO
120
100
SO
60
40
20
0
•I r
X
Ad
AJv
MM
\
\
\ 1/
V\l"
\
/
\
V
1319
1920
\
1921
280
260
240
220
2O0
180
160
140
120
KX)
SO
60
40
20
0
709
FEDERAL RESERVE BULLETIN.
low level. Total April production of crude
petroleum showed a slight decline, but the
average daily production reached a new high
level. Pig-iron production in May was only
slightly higher than in April, and the output of
steel ingots continued on a very restricted basis.
Both receipts and shipments of live stock at
15 western markets continued to decline
during April. Stocker and feeder shipments
from 34 markets were slightly smaller than in
March and were very much less than the shipments in April, 1920. There was an increase
over the previous month in the shipments
of cattle and calves and sheep, but there was a
large decrease in shipments of hogs. The
number of animals slaughtered under Federal
inspection was slightly less in April than in
March, but was considerably greater than in
April, 1920. Receipts of grain and flour at
17 interior centers were much smaller during
April than in the previous month, but were
larger than in April, 1920. There was a noticeable decline in stocks of grain at 11 interior
centers during April, although these stocks were
still greater than at the corresponding date in
1920. There was a temporary check to the
seasonal declines in cotton sight receipts and
port receipts during April, but American
spinners' takings continued to decline. Wheat
flour production was greater than in March or
in April a year ago. Shipments of citrus fruits
in April were the largest recorded in any month
during the past three years.
Production of lumber by five reporting
associations showed an increase during April,
although there were slight decreases in production of southern pine and eastern white pine.
Production was considerably lower than in
April, 1920, except in the case of North Carolina pine. All five associations reported increases in shipments during April, as compared
with the previous month. Receipts of raw
sugar at North Atlantic ports increased during
April, but meltings showed a marked decrease.
Raw stocks at the close of April were over 100
per cent greater than at the close of March.
The tonnage of vessels cleared during April
was larger than in March, or in April, 1920.
LIVE-STOCK MOVEMENTS.
[Bureau of Markets.]
Receipts.
1920
April
July
August
September..
October
November..
December..
1921,
January
February...
March
April
Shipments.
and
Sheep, 54 Horses
43
markets. mules,
markets.
Cattle and
calves, 59
markets.
Hogs, 59
markets.
and Total, all Cattle and
Sheep, 59 Horses
calves, 54
43
markets. mules,
kinds.
markets.
markets.
Hogs, 54
markets.
Head.
1,538,567
1,657,743
1,952,086
2,279,345
2,196,939
2,403,990
1,382,995
Head.
2,989,715
2,837,685
2,516,240
2,435,589
2,826,277
3,862,243
4,186,261
Head.
1,440,654
2,000,758
2,561,661
2,826,693
2,945,709
2,419,596
1,546,876
Head.
48,036
35,668
73,423
57,468
38,657
22,477
16,118
6,531,854
7,103,410
7,599,095
8,007,582
8,708,306
7,132,250
Head.
593,438
721,328
869,849
1,079,170
1,159,459
1,148,861
647,801
Head.
1,119,205
1,095,470
953,088
931,261
1,064,175
1,394,347
1,516,893
Head.
728,718
1,015,612
1,459,150
1,581,680
1,932,083
1,474,299
704,760
Head.
48,004
37,152
69,971
60,414
37,994
22,963
17,030
Head.
2,489,365
2,869,562
3,352,058
3,652,525
4,193,711
4,040,470
2,886,484
1,629,994
1,174,611
1,548,061
1,477, 720
4,654,560
3,951,971
3,338,483
3,203,016
1,769,155
1,501,902
1,731,653
1,648,950
34,712
41,212
41,951
23,980
8,088,421
6,669,696
6,660,148
6,353,666
602,320
456,471
587,898
600,996
1,637,902
1,346,092
1,229,405
1,116,890
681,987
590,487
688,072
696,229
34,572
40,611
42,602
22,533
2,956,781
2,433,661
2,547,977
2,436,648
Head.
6,016,972
Total, all
kinds.
RECEIPTS AND SHIPMENTS OF LIVE STOCK AT 15 WESTERN MARKETS.
[Chicago, Kansas City, Oklahoma City, Omaha, East St. Louis, St. Joseph, St. Paul, Sioux City, Cincinnati, Cleveland, Denver, Fort Worth,
Indianapolis, Louisville, Wichita. Monthly average, 1911-1913=100.]
RECEIPTS.
Head.
1920.
April
July
August
September
October
November.
December
1921.
January
February
March
April
.
Relative.
Head.
Horses and mules.
Sheep.
Hogs.
Cattle and calves.
Relative.
Head.
Relative.
Head.
Total, all kinds.
Relative.
Head.
Relative.
1,037,350
1 188 019
1,459,565
1,736,009
1 628 564
1,781,261
984 309
103
118
145
172
162
177
98
2,109,195
2,115,639
1,818,245
1,597,622
1,838,748
2,624,185
2 932 052
96
96
83
73
84
119
133
927,800
1,301,458
1,688,719
1,893,312
1,865,330
1,542,477
942,858
68
95
124
139
136
113
69
31,235
26,257
55,371
38,950
24,716
12,149
9,290
68
57
120
85
54
26
20
4,105,580
4,631,373
5,021,900
5,265,893
5,355,358
5,960,072
4,868,509
89
100
109
114
116
129
105
1,191,814
835 686
1,119,548
994,916
118
89
111
99
3,339,419
2,902,107
2,390,480
2,279,495
152
141
109
104
1,112,024
972,647
1,161,549
1,077,806
81
76
85
79
24,1,58
27 111
28,437
15,221
52
63
62
33
5,667,415
4,737,551
4,700,014
4,367,438
123
110
102
95
710
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
RECEIPTS AND SHIPMENTS OF LIVE STOCK AT 15 WESTERN MARKETS—Continued.
SHIPMENTS.
Head.
1920,
April
July
August
September..
October
November..
December..
1921
January
February...
March
April
Sheep.
Hogs.
Cattle and calves.
Relative.
Head.
Relative.
Head.
Total, all kinds.
Horses and mules.
Relative.
Head.
Head.
Relative.
Relative.
414,967
508,199
640,295
819,371
866,327
810,284
472,748
102
125
157
202
213
199
116
712,087
737,923
627,670
540,812
584,742
784,468
943,515
147
152
130
112
121
162
195
373,381
644,557
899,342
1,027,510
1,192,912
952,159
384,646
74
128
179
204
237
189
76
31,348
27,728
52,163
40,890
24,051
12,782
10,201
68
127
100
59
31
25
1,531,783
1,918,407
2,219,470
2,428,583
2,668,032
2,559,693
1,811,110
107
134
155
169
186
178
126
426,887
334,113
447,682
415,153
105
88
110
102
1,078,679
869,718
825,944
694,067
223
192
170
143
316,068
324,311
406,705
392,061
63
69
81
78
24,463
26,495
28,765
14,396
60
69
70
35
1,846,097
1,554,637
1,709,096
1,515,677
129
116
119
106
76
SHIPMENTS OF STOCKERS AND FEEDERS FROM 34 MARKETS.
Cattle and
calves.
Head.
241,511
209,563
273,512
473,652
571,025
1920.
April
July
August
September...
October
Hogs.
Sheep.
Total, all
kinds.
Head.
67,995
25,711
34,415
44,340
59,123
Head.
267,657
322,867
567,429
789,387
1,055,237
Head.
577,162
558,141
875,356
1,307,379
1,685,385
Catlle and
calves.
1920.
November...
December
1921.
January
February
March
April
Total, all
kinds.
Sheep.
Hogs.
Head.
545,802
277,053
Head.
52,699
36,827
Head.
855,545
258,599
Head.
1,454,064
572, 479
202,926
164,504
233,477
234,331
41,892
49,229
72,536
50,320
61,508
88,292
106,476
332,907
275,241
394,305
391,127
ANIMALS SLAUGHTERED UNDER FEDERAL INSPECTION.
[Bureau of Animal Industry. Monthly average, 1911-1913=100.]
Head.
April
July
August
September
October
November
December
January
February
March
April
1920.
Relative.
Relative.
Head.
Sheep.
Hogs.
Calves.
Cattle.
Relative.
Head.
Head.
Total.
Relative.
Head.
Relative.
637,575
661,172
685,763
825,484
843,136
858,946
667,344
382,420
216
109
113
136
139
142
110
342,765
332,349
347,578
314,789
315,971
244,573
194
188
197
178
179
138
2,590,208
2,643,772
2,176,010
1,978,602
2,486,940
3,328,633
3,985,125
94
77
70
88
118
142
713,796
1,048,428
1,041,580
1,150,776
1,067,821
968,235
932,417
4,323,999
4,696,137
4,235,702
4,302,440
4,712,686
5,471,785
5,829,459
90
98
114
121
689,506
522,718
624,395
590,943
114
92
103
97
282,043
252,369
361,733
365,541
160
153
205
207
4,347,306
3,770,974
3,075,137
3,003,290
154
143
109
107
1,068,346
957,751
1,075,481
1,040,628
6,387,201
5,503,812
5,136,746
5,000,402
133
123
107
104
1921.
90
EXPORTS OF CERTAIN MEAT PRODUCTS.
[Department of Commerce. Monthly average, 1911-1913=100.]
Beef, canned.
Pounds.
1920.
April
July
August
September
October...
November.
December.
1921.
January...
February..
March
April
1,606,613
5,217,838
1,231,070
244,261
207,503
282,761
399,916
548,227
1,733,678
504,356
366,682
Beef, fresh.
Relative. Pounds.
242
788
186
37
31
43
60
Relative. Pounds.
17,687,306 1,426
5,506,812 444
343,352
28
1,964,543 158
522,251
42
3,091,895 249
1,583,434 128
83 6,078,550
979,081
508,230
214,193
Beef, pickled,
and other cured.
490
85
41
17
2,241,460
1,973,004
2,152,982
1,613,657
1,995,039
1,678,091
3,053,993
1,725,625
1,750,756
2,246,547
1,364,593
P Hams and
shoulders, cured.
Bacon.
Relative.
Pounds.
84
74
81
60
75
63
114
24,356,170
31,562,761
23,333,156
41,371,561
49,838,768
57,934,259
68,784,322
43,202,486
31,612,140
35,350,774
32,851,837
258
202
211
196
Lard.
Pickled pork.
Relative.
Pounds.
145 15,640,236
188
139 9,360,469
247 8,997,124
298 8,787,853
346 11,197,880
411 14,491,763
105
56
63
60
59
75
97
40,758,401
47,061,422
31,020,802
46,326,353
54,173,979
57,316,309
90,080,092
93
107
71
105
123
130
205
2,734, 535
2,926,247
2,257,511
3,279,902
3,549,456
2,605,431
2,691,452
62
66
51
74
80
59
61
16,869,841
15,847,799
19,102,633
24,925,807
113
114
128
167
76,185,237
91,840,951
82,616,583
53,275,457
173
224
188
121
3,089,094
3,150,452
2,024,334
2,005, 851
70
76
46
45
Relativi
Pounds.
Relative Pounds.
Relative.
711
FEDERAL, RESERVE BULLETIN.
JUNE, 1921.
RECEIPTS OF GRAIN AND FLOUR AT 17 INTERIOR CENTERS.
[Chicago, Cleveland, Detroit, Duluth, Indianapolis, Kansas City, Little Rock, Louisville, Memphis, Milwaukee, Minneapolis, Omaha, Feoria,
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.]
Wheat.
Corn.
Oats.
Total grain.
Barley.
Rye.
Total grain and
flour.i
Flour.
Rela- Bushels. Rela- Bushels. RelaRelaRelaRelaRelaBushels. tive.
tive.
tive. Bushels. tive. Bushels. tive. Bushels. tive. Barrels. tive. Bushels.
Relative.
1920.
April
15,260,236
56 11,326,509
5112,952,593
64 2,914,553
264 2,231,881
3144,685,772
888,423
45 48,683,676
July
August
September.
October
November.
December.
29,714,399
43,039,021
46,181,275
45,403,825
39,272,827
32,758,773
11020,824,268
159 9,840,320
170 20,696,955
16719,064,508
14511,407,224
12119,390,714
9318,1,734,180
44 30,1,728,748
92 31,031,569
85 21,235,162
5115;», 282,651
8713,1,777,300
93 3,!, 096,026
153 3,i, 191,103
154 5,i, 571,428
106 4[, 455,979
76 3,706,653
69 3,482,685
2812,653,921
3,007,508
6,630,056
5056,
404 5,795,028
336 6,616,3621
316 5,057,808
37 75,022,794
42 89,806,700
92 110,111,283
' "15,954,502
8195,
6,285,717
92 76,
7174.4,467,280
96 2,052,110
1151,949,339
1411,843,954
123 2,137,639
98 2,054,262|
961,570,822
105 84,257,289
100 98,578,726
94 118,409,076
109105,573,878
105 85,529,896
80 81,535,979
97
114
137
122
99
94
1921.
January
February...
March
April
32,229,218
22,922,667
22,848,939
24,808,383
119 42,036,812
~ 17,565,779
9127.
84 34!
4,165,324
9212:2,160,933
18818,508,986
13212,553,913
15217,432,655
54 11,249,703
92 2,202,705
671,397,832
87 1,340,498
561,544,229
200 3,753,837
136 2,074,908
"13,111,127
1213.
3 2,136,512
52 98,
8,731,558
3166,6,515,099
43 78,
8,898,543
30 511,899,760
1271,430,904
91 1,659,009
1012;2,096,030
671,967,255
73 105,170,626
91 73,980,640
107 88,330,678
100 60,752,408
121
91
102
70
1
57
Flour reduced to its equivalent in wheat on basis of 4§ bushels to barrel.
SHIPMENTS OF GRAIN AND FLOUR AT 14 INTERIOR CENTERS.
[Chicago, Cleveland, Detroit, Duluth, Kansas City, Little Rock, Louisville, Milwaukee, Minneapolis, Omaha, Peoria, St. Louis, Toledo, Wichita;
shipments of flour not available for Cleveland, Detroit, Louisville, Omaha, Toledo, and Wichita.]
Wheat.
Corn.
Oats.
Total grain.
Barley.
Rye.
Total gram and
flour.i
Flour.
RelaRelaRelaRelaRelaRela- Barrels. Rela
Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive.
tive.
Bushels.
Relative.
1920.
April
11,058,643
5,371,811
38 8,691,440
57 8,811,500 1,2441,637,509
42 35,570,903
721,702,132
July..
August
September..
October
November..
December..
19,002,099
24,934,816
28,700,593
26,258,795
24,950,771
22,253,030
122 9,100,527
160 6,260,144
184 6,284,075
16910,336,378
160 7,890,500
143 7,898,979
6411,345,429
4412,814,067
4412,690,866
72 10,601,178
55 10,729,045
55 9,964,743
75 4,476,238
84 2,880,003
83 4,339,057
70 4,742,380
71 2,998,524
66 3,171,616
632 2,086,672
407 2,231,851
613 3,556,180
670 4,529,091
423 4,247,954
448 3,082,249
6,010,965
53 46J
57 49,:
[9,120,881
91 55,
15,570,771
J
116 56,467,822
109 50,816,794
79 46,370,617
93 3,767,678
99 3,605,105
~ 2 3,187,454
,
1 3,758,735
1142 3,949,699
3,
102
3,
93~ 3,141,524
3!
111
106
94
111
117
62,965,516
65,343,854
69,914,314
73,382,130
68,590,440
93 60,507,475
97
101
108
113
106
93
1921.
January
February...
March
April
20,187,379
15,134,115
17,415,266!
21,482,283
13017,288,509
104 12,891,895
112 20,723,904
13813,793,563
12111,523,642
9,299,842
145 12,435,262
9710,286,573
76 2,380,797
66 1,041,424
821,116,943
681,518,559
336 2,!, 874,359
74 54,:, 254,686
45 39,1,994,189
43 53,377,364
53,
'",110,816
52 49
109 2,!, 678,257
86 2,t, 696,723
107 3,[,156,299
99 3.,178,254
66,306,843
52,129,443
67,580,710
94 63,412,959
102
86
104
1
158 I,626,913
1581, 685,989
214 2,029,838
50 43,230,497
67
Flour reduced to its equivalent in wheat on basis of 4J bushels to barrel.
STOCKS OF GRAIN AT 11 INTERIOR CENTERS AT CLOSE OF MONTH.
[Chicago, Detroit, Duluth, Tndianapolis, Kansas City, Milwaukee, Minneapolis, Omaha, Peoria, St. Louis, and Toledo.]
Wheat.
April
1920.
July
August
September
October
November
December
January
February
March
April
1921.
Corn.
Oats.
Rye.
Barley.
Total grain.
Bushels.
29,711,858
Bushels.
4,127,290
Bushels.
6,242,002
Bushels.
8,197,900
Bushels.
1,766,025
Bushels.
50,045,075
5,492,026
5,460,879
9,134,621
14,627,524
16,058,407
15,525,114
4,959,314
1,414,708
5,669,580
7,823,807
3,461,911
4,793,299
2,059,842
7,447,762
23,322,910
28,941,14.8
28,697,974
27,358,948
670,563
338,600
1,303,475
668,084
1,082,195
1,007,591
1,336,553
709,469
2,114,369
2,096,517
1,874,366
2,378,548
14,518,298
15,371,414
41,544,955
54,157,080
51,174,853
51,063,500
14,414,231
12,883,444
11,277,724
6,565,280
11,596,518
17,294,569
24,465,117
16,498,010
29,435,153
30,039,057
31,570,022
27,717,326
478,125
600,585
562,754
494,356
2,057,434
1,800,604
1,673,037
1,333,323
57,981,461
62,618,259
69,548,654
52,608,295
712
FEDERAL RESERVE BULLETIN.
JUNE,
1921.
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.]
Bushels.
1920.
April....
July
August
September..
October
November..
December..
RelaRelative. Bushels. tive.
5,441,434
18,710,633
28,098,022
31,693,246
29,028,202
24,410,356
29,551,950
1
Total grain.
RelaRelaRelaBushels.
Bushels.
tive.
tive.
tive.
Rela-
Bushels.
Total grain and
flour, i
Flour.
Relative.
Barrels.
Relative.
Bushels.
43 1,317,555
1,546,590
33 3,440,350 2,421
16,228,605
59
3,305,542
1,576,842
1,456,958
1,844,753
2,401,181
854,138
3,499,101
2,671,365
3,069,700
1,828,515
1,874,271
1,911,861
74 5,048,019
56 3,407,799
65 4,133,465
38 5,436,354
39 3,329,710
40 3,490,405
3,553 2,098,083
2,398 2,289,791
2,909 1,815,227
3,826 2,558,276
2,344 2,721,320
2,457 2,291,639
126 32,661,378
138 38,043,819
109 42,168,596
154 40,696,100
164 34,736,838
138 38,099,993
1441,660,849
1681,390,077
1861,422,872
1791,463,830
153 3,683,380
168 4,367,180
159
133
136
140
353
418
40,135,198
44,299,166
48,571,520
47,283,335
51,312,048
57,752,303
146
162
177
173
187
211
1,542,355
1,039,537
1,433,069
1,568,460
32 2,748,524 1,9341,970,931
- , „ _ . , „.„,—
23 2,059,538 1,553 1,631,288|
~~"i, —
129'
7281,689,1
301L, 034,760
'
331L, 617,877 1,139 — ,409
119 25,207,240
105 22,892,130
102 27,154,549
55 24,944,322
1111,174,815
1081,186,565
1201,518,450
1101,831,404
112
122
145
175
30,493,908
28,231,673
33,987,574
33,185,640
111
110
124
121
149
223
252
230
194
235
1921.
January
12,717,255
February... 10,315,852
9,064,534
March
17,958,534
April
Bushels.
Barley.
Rye.
Oats.
Corn.
Wheat.
101 6,228,175
88 7,845,915
72 13,933,057
143 2,890,042
175
237
392
81
685,054
4112,430,9
843,916
55
Flour reduced to its equivalent in wheat on basis of 4J bushels per barrel.
STOCKS OF GRAIN AT EIGHT SEABOARD CENTERS AT CLOSE OF MONTH.
[Boston, New York, Philadelphia, Baltimore, New Orleans, Newport News, Galveston, San Francisco.
organizations at these cities.]
Wheat.
1920.
April
.
July
August
September
October
November
December
Corn.
Oats.
Bushels.
7,704,155
Bushels.
967,475
11,923,745
13,915,892
15,517,070
17,277,003
17,794,605
18,263,476
744,167
1,097,945
1,146,514
1,292,818
1,371,013
510,142
15,060,423
12,032,772
6,782,584
5,651,320
2,524,700
3,982,316
6,353,250
1,022,990
Compiled from reports of trade
Rye.
Bushels.
Barley.
Total grain.
Bushels.
1,944,350
Bushels.
2,034,983
Bushels.
13,040,921
1,323,940
1,532,272
2,398,157
2,521,049
2,327,249
2,205,936
1,275,554
777,445
2,414,910
1,742,178
1,906,527
2,196,380
3,187,611
4,052,189
4,110,158
3,577,450
3,097,922
3,322,050
18,455,017
21,375,743
25*, 586,809
26,410,498
26,497,316
26,497,984
1,980,265
1,775,563
1,286,275
1,316,157
1,602,358
1,332,441
1,069,220
550,011
2,105,450
1,909,706
1,454,547
1,326,460
23,273,196
21,032,798
16,945,870
10,666,938
1921.
January
February
March
April
NOTE.—Figures for S a n Francisco include also stocks at Port Costa a n d Stockton.
WHEAT FLOUR
PRODUCTION.
[January, 1918, t o J u n e , 1920, U. S. Grain Corporation; July, 1920, on, estimated b y Russell's Commercial News (Inc.), New York.]
1920.
Barrels.
7,375,000
April
July
August
September
October
8,200,000
10,200,000
9,450,000
9,650,000
,
1920.
Barrels.
9,500,000
9,600,000
November
December
1921.
January
February
March
April
8,924,000
7,066,000
9,100,000
9,368,000
COTTON.
[New Orleans Cotton Exchange.
Sight receipts.
Bales.
Relative.
Monthly average crop years, 1911-1913=100.]
Port receipts.
Bales.
Relative.
Overland movement.
Bales.
Relative.
American spinners'
takings.
Bales.
Relative.
Stocks at ports and
interior towns at
close of month.
Bales.
Relative.
1920-21.
August
September
October
November
December
January
February.
March
April
308,262
771,590
1,466,874
1,804,135
1,579,751
1,153,825
744,682
553,518
564,521
159,586
25
443,149
62
971,334
117
144 = 1,075,803
797,350
126 I
636,260
92
446,399
64
401,464
44
477,672
45
17
48
106
117
87
69
52
44
52
25,322
17,324
87,215
117,139
134,455
157,012
206,554
134,085
101,906
24
16
83
111
128
149
210
127
97
251,841
254,460
395,165
425,089
672,477
526,718
576,260
253,368
211,415
55
56
87
94
148
116
136
56
47
1,365,397
1,607,602
2,101,839
2,597,820
2,815,934
2,863,377
2,820,403
2,757,715
2,775,391
116
136
178
220
239
243
239
234
236
713
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
COTTON SEED.
[Bureau of the Census.]
April
July
August
September
October
Received
at mills.
Crushed.
On hand at
mills (close
of month).
1920.
Tons.
62,267
Tons.
173,805
Tons.
104,334
,
7,259
24,979
244,382
945,998
13,219
20,317
145,519
607,628
36,760
135,623
471,979
1920.
November
December
Received
at mills.
Crushed.
On hand at
mills (close
of month).
Tons.
829,282
557,787
Tons.
719,455
546,086
Tons.
581,806
593,507
418,846
431,539
336,226
133,832
527,521
499,851
452,770
242,282
484,832
416,520
299,976
191,526
1921.
January
February
March
April
S H I P M E N T S OF CITRUS AND DECIDUOUS FRUITS F R O M CALIFORNIA.
[March, 1921, on, Bureau of Markets and California Fruit News.* Monthly average, 1911-1913=100.]
Oranges.
Carloads.
Relative.
Carloads.
Relative.
3,720
152
508
125
4,228
148
22
2, 822
1,707
1,409
752
1,602
3,774
115
70
58
31
66
154
664
751
464
925
377
368
164
185
115
228
93
91
3,486
2,458
1,873
1,677
1,979
2 4,167
122
86
66
59
69
146
3,179
7,239
9,021
11,880
2,792
368
3,429
3,484
4,955
6,335
140
153
203
259
627
610
936
155
161
231
289
2 4,077
2 4,123
5,891
7,506
143
155
207
263
98
81
81
82
July
August
September
October
November
December
1921.
January
February
March
April
1
Carloads.
Carloads.
1920.
April
Total
deciduous
fruits.
Total citrus fruits.
Lemons.
1,171
2
For previous sources, see April, 1921, Bulletin.
Relative
Includes grapefruit.
SUGAR.
[Data for ports of New York, Boston, Philadelphia. Weekly Statistical Sugar Trade Journal. Tons of 2,240 pounds. Monthly average, 19111913=100.]
Receipts.
Tons.
April
1920.
July
August
September
October
November
Raw stocks at
close of month.
Meltings.
Relative.
Tons.
Relative.
Tons.
Relative.
Tons.
Raw stocks at
close of month.
Meltings.
Receipts.
Relative.
Tons.
Relative.
Relative.
Tons.
310,580
169
307,000
167
91,765
53
1920.
December
148,464
81
154,000
84
63,715
37
386,328
308,313
109,302
109,335
186,274
210
168
59
59
101
325,000
287,000
164,000
118,000
179,000
177
156
89
64
98
104,027
125,340
70,642
61,977
69,251
60
73
41
36
40
1921.
January
February
March
April
92,498
228,952
306,914
345,654
50
133
167
188
94,000
193,000
310,000
232,000
51
113
169
126
62,113
98,165
87,466
187,796
36
57
51
109
SALE OF REVENUE STAMPS FOR MANUFACTURES OF TOBACCO IN T H E UNITED STATES (EXCLUDING P O R T O RICO AND
P H I L I P P I N E ISLANDS).
[Commissioner of Internal Revenue.]
Cigars.
April
1920.
July
August
September
October
November
Cigarettes.
Large.
Small.
Small.
Manufactured
tobacco.
Number.
663,577,579
Number.
56,548,853
Number.
3,756,989,397
Pounds.
34,327,970
678,751,956
672,020,289
678,640,116
704,799,089
668,060,015
51,766,100
48,171,240
50,175,580
60,882,760
57,026,500
3,053,336,563
3,569,397,443
3,557,482,503
3,840,334,806
3,529,200,006
30,988,646
32,138,941
32,094,569
27,123,774
18,513,654
Cigarettes.
Cigars.
Large.
Small.
Small.
Manufactured
tobacco.
1920.
December
Number.
506,126,135
Number.
47,380,000
Number.
2,816,818,050
Pounds.
15,452,701
1921.
January
February
March
April
462,798,039
496,724,482
561,343,699
548,103,503
64,661,867
64,461,733
70,245,500
56,425,666
3,901,560,330 24,750,290
4,119,376,533 27,096,592
4,470,292,160 32,209,842
3,801,672,057 28,399,953
714
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
NAVAL STORES.
[Data for Savannah, Jacksonville, and Pensacola. Compiled from reports of trade organizations at these cities.]
Spirits of turpentine.
Rosin.
Spirits of turpentine.
Receipts.
Stocks
at close of
month.
Receipts.
Stocks
at close of
month.
1920.
Barrels.
7,644
Barrels.
3,996
Barrels.
27,029
Barrels.
98,517
July
August
September...
October
November...
39,158
33,997
32,162
30,260
23,893
30,906
27,963
44,396
49,885
49,209
135,979
144,109
176,612
195,837
247,253
April
117,088
111,497
97,797
88,766
83,177 j
Rosin.
Receipts.
Stocks
at close of
month.
Receipts.
1920.
December
Barrels.
21,174
Barrels.
53,356
Barrels.
76,848
Barrels.
300,315
1921.
January
February
March
April
9,419
7,404
7,995
15,857
51,563
41,755
28,838
28,690
36,333
26,736
18,906
30,478
310,905
316,440
319,347
304,959
Stocks
at close of
month.
LUMBER.
[From reports of manufacturers' associations.]
Southern pine.
Number of
mills.
Production.
Western pine.
Ship- Numof
ments. ber
mills.
Mfeet.
Mfeet.
Production.
Mfeet.
Douglas fir.
Shm !
Num
-
Production.
Eastern white pine.
Ship- Numof
ments. ber
mills.
Mfeet. •Mfeet.
37,459
46,149
48,962
40,724
20,294
19,056
49,668
55,991
45,445
30,928
19,751
10,587
20,756
19,511
21,887
19,487
14,617
8,091
15,217
14,130
16,043
14,877
12,929
14,716
170,821
153,649
210,842
232,351
24,319
23,722
26,396
25,748
10,602
13,615
15,298
21,099
7,123
10,673
12,778
14,871
7,880
10,045
8,915
12,953
274,597
July
August
September.
October
November.
December..
207 385,842 331,273
204 383,540 337,677
204 376,566 378,195
206 344,427 329,751
203 315,343 320,756
199 264,504 281,326
177,262
171,143
164,312
146,424
107,846
45,578
103,500 ! 127 242,612
123,344 123 366,433
98,808 127 299,277
69,936 120 355,614
60,259 123 263,452
46,112 | 119188,905
1921.
January—
February..
March
April
193
189
195
194
311,977
335,876
390,300
405,317
24,698
22,128
35,983
93,665
42,793
48,270
63,126
75,433
116 153,157
114 159,646
118 192,188
114 204,698
Mfeet.
225,666
322,908
238,965
299,704
212,226
187,874
126 359,651
289,824
330,680
387,959
370,321
Shipments.
Mfeet.
Mfeet.
133,114
205 438,056
Production.
Mfeet.
167,165
1920.
North Carolina pine.
Ship- Numof
ments. ber
mills.
Mfeet.
359,461
April
Production.
46,222
61,757
13,659
10,613
RECEIPTS AND SHIPMENTS OF LUMBER AT CHICAGO AND ST. LOUIS.
[Chicago Board of Trade and Merchants' Exchange of St. Louis. Monthly average, 1911-1913=100.]
Receipts.
Mfeet.
May.
1920.
July
August
September..
October
November..
Receipts.
Shipments.
Relative.
Mfeet.
313,447
195,965
399,615
370,352
375,456
398,333
342,971
184,767
220,368
242,857
220,116
190,282
Relative.
77
M feet.
December
January
February
March
April
May
1920.
Relative,
351,695
1921.
Shipments.
76
263,001
269,632
349,426
345,798
354,992
M feet.
Relative.
192,072
76
165,308
169,813
215,760
213,359
242,452
65
72
85
84
95
COAL AND COKE.
[U. S. Geological Survey. Monthly average, 1911-1913=100.]
Bituminous coal, estimated monthly production.
Short tons.
April
1920.
July
August
September
October
November
December
January
February
March
April
Relative.
Anthracite coal, esti- Beehive coke, estimated
mated monthly promonthly production.
duction.
Short tons.
Relative.
Short tons.
Relative.
37,939,000
102
6,214,000
84
1,602,167
61
45,009,000
48,910.000
49,172,000
52,144,000
51,457,000
52,123,000
121
132
133
141
139
141
8,247,000
8,013,000
4,638,000
8,056,000
7,441,000
8,454,000
111
108
63
109
101
114
1,693,000
1,776,000
1,757,667
1,742,333
1,622,000
1,515,000
65
40,270,000
30,851,000
30,392,000
27,553,000
109
7,410,000
7,701,000
7,406,000
7,703,000
100
106
100
104
1,074,833
863,834
587,333
325,000
41
1921.
67
67
58
22
12
715
FEDERAL, RESERVE BULLETIN.
JUNE, 1921.
CRUDE PETROLEUM.
[Production and stocks, U. S. Geological Survey; wells completed, Oil and Gas Journal and Standard Oil Bulletin (California). Barrels of 42
gallons each. Monthly average, 1911-1913=100.]
Production.
April
1920.
July
August
September
October
November
December
Stocks at
close of
month
(barrels).
Production.
Producing
oil wells
completed.
Barrels.
Relative.
35,583,000
186
2,090
38,203,000
39,055,000
37,532,000
39,592,000
38,699,000
38,961,000
199
204
196
207
202
203
1,910
2,456
2,185
2,086
2,136
1,945
124,449,000
122,852,000
123,198,000
125,853,000
128,028,000
January
February
March
April
1921.
Barrels.
Relative.
Stocks at
close of
month
(barrels).
37,853,000
35,348,000
40,965,000
40,039,000
197
198
214
209
130,321,000
135,092,000
142,093,000
147,898,000
Producing
oil wells
completed.
1,565
1,564
1,450
1,224
TOTAL OUTPUT OF OIL REFINERIES AND STOCKS OF OIL.
[Bureau of Mines.]
OUTPUT, B Y MONTHS.
Crude oil run
(barrels).
1920.
|
i
March
July
August
September.
October....
November.
December..
1921.
January...
February.
March
Gasoline
(gallons).
Kerosene.
(gallons).
Gas and fuel Lubricating
(gallons).
(gallons).
33,592,004
37,024,052
39,757,770
40,549,316
40,687,250
39,458,945
40,485,409
367,137,678
191,110,175
686,945,963
81,818,973
423,419,770
444,141,422
453,881,096
465,787,745
452,642,125
464,393,356
172,213,511
189,010,459
199,140,024
213,742,156
214,804,177
210,668,109
751,193,898
834,322,503
836,700,086
823,114,603
822,638,305
859,131,359
92,369,504
91,078,569
86,230,371
93,229,723
91,180,007
90, 894,798
39,637,382
34,588,096
35,509,115
460,432,439
388,188,252
419,795,390
205,374,611
163,081,918
169,247,894
836,684,040
732,542,415
758,334,681
85,908,641
72,432,219
73,003,304
STOCKS AT CLOSE OF MONTH.
1920.
Mar. 31
July 31
Aug. 31
Sept. 30
Oct. 31
Nov.30
Dec. 31
14,346,458
626,393,046
334,617,117
580,182,858
130,630,597
17,086,253
17,960,558
18,830,079
19,237,730
21,373,945
21,260,580
413,279,319
323,239,991
288,195,394
301,283,731
354,835,764
462,381,837
410,853,047
378,548,791
379,300,705
383,828,239
398,991,592
393,070,923
655,152,293
708,608,472
771,126,965
799,024,084
808,802,516
837,404,414
131,866,455
130,797,810
130,449, 829
136,194,914
142,180,775
160, 522,477
21,064,124
22,411,819
21,147,257
571,983,793
680,540,351
713,043,480
418,747,781 921,028,127
430,045,193 993,127,328
446,367,188 1,005,317,939
183,813,205
201,627,558
223,414,093
1921.
Jan. 31
Feb. 28
Mar. 31
IRON AND STEEL.
[Pig-iron production, Iron Age; steei-ingot production, American Iron and Steel Institute. Monthly average, 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.
May.
1920.
July
August
September.
October
November..
December..
January...
February.
March
April
May
6,976,085
115
2,985,682
129
2,883,164
123
10,940,466
208
9,638,606
9,270,763
8,923,482
159
153
147
146
3,067,043
3,147,402
3,129,323
3,292,597
2,934,908
2,703,855
132
136
135
142
127
117
2,802,818
3,000,432
2,999,551
3,015,982
2,638,670
2,340,365
120 11,118,468
128 10,805,038
128 10,374,804
129 9,836, 852
113 9,021,481
100 8,148,122
211
205
197
187
171
155
2,416,292
1,937,257
1,595,522
1,193,041
1,221,221
104
90
2,203,186
1,749,477
1,570,978
1,213,958
1,265,850
7,573,164
6,933,867
6,284,765
5,845,224
5,482,487
144
132
119
111
104
5,305,738
99,146
1921.
176, 211
716
FEDERAL, RESERVE BULLETIN.
JUNE, 1921.
STRUCTURAL-STEEL ORDERS AND SHIPMENTS.
[Bridge Builders and Structural Society.]
Fabricated structural steel con- Structural-steel orders and shipments of
t r a c t e d for
the membership of Bridge Builders
throughout
and Structural Society.
country.
Shipments.
Orders.
Ton-
nage.
Per cent
shop
capacity.
Tonnage.
1920.
April
Tonnage.
Per cent
shop
capacity.
122,250
68.0
49,411
67.0
43,836
60.0
90,400
72,000
77, 400
45,600
49,200
47,000
50.0
40.0
43.0
25.5
27.5
26.0
33,213
36,843
26,755
14,161
11,531
14,521
47.0
50.0
37.0
20.0
16.0
20.0
49,096
51,381
53,526
47,200
41,268
42,767
70.0
74.0
66.0
57.5
60.0
32,000
25,600
52,300
55,800
18.0
14.0
29.0
31.0
12,194
12,013
26,398
22,694
18.0
18.5
38.0
32.5
32,964
25,776
30,011
29,550
48.5
40.0
43.0
42.5
July
August
September
October
November
December
1921.
January
February
March
April
Per cent
shop,
capacity.
ZINC.
[American Zinc Institute.]
Produced.
January
February
March
April
May
June
July
August
September
October
1920.
Stocks
at end of
month.
Short tons. Short tons.
43,441
40,311
43,921
37,095
48,256
31,019
45,399
32,510
45,415
29,335
41,009
26,854
40,194
29,059
38,226
29,578
36,819
42,900
35,335
51,230
Produced.
Short tons. Short tons.
33,318
64,390
28,459
71,058
1920,
November
December
Stocks
at end of
month.
1921,
January
February
March
April
May
25,916
17,769
15,741
16,550
18,026
75,953
78,020
80,990
79,581
83,721
Pounds.
Relative.
IMPORTS OF PIG TIN.
[Department of Commerce. Monthly average, 1911-1913=100.]
Pounds.
April
Relative.
1920
July
August
September
October
10,345,130
114
17,584,167
11,195,937
9,596,819
6,741,331
193
123
106
74
1920,
November
December
1921,
January
February
March
April
9,550,535
5,893,627
105
65
2,584,347
5,269,969
3,028,356
2,483,655
28
62
33
27
RAW STOCKS OF HIDES AND SKINS.i
[Bureau of Markets; July, 1920, on, Bureau of the Census.]
Apr. 30
Sept. 30
Oct. 31
Nov. 30
Dec. 31
Jan. 31
Feb. 28
Mar. 31
Apr. 30
1920.
Cattle
hides.
Calfskins.
Kipskins.
Goat and
kid.
Cabretta.
6,072,895
5,926,708
6,770,509
7,158,751
7,793,762
2,281,370
3,542,388
3,850,183
3,492,653
3,271,905
834,711
1,083,193
1,377,998
1,422,608
1,305,776
14,823,461
13,408,277
12,147,070
11,231,086
11,721,505
1,947,499
2,197,149
2,104,133
2,234,027
2,685,670
8,911,681
11,235,417
13,626,406
12,705,767
13,773,089
7,899,138
7,940,359
7,806,867.
7,407,862
3,086,862
3,157,723
3,060,144
3,454,470
1,381,748
1,375,110
1,241,984
1,107,310
10,870,210
9,798,311
8,652,171
7,740,147
2,155,200
1,941,832
1,579,457
1,277,321
13,184,052
12,489,855
12,970,857
12,992,299
1921.
Sheep and
lamb.
1
Includes hides and skins in transit. The number of firms reporting increased in the autumn of 1920 as follows: September, 1,307; October,
1,915; November, 2,027; December, 2,059.
717
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
TEXTILES—COTTON AND SILK.
[Cotton, Bureau of the Census; silk, Department of Commerce. Cotton, monthly average, crop years 1912-1914=100; silk, monthly average,
1911-1913=100.]
Cotton consumption.
Relative.
Bales.
April
1920.
July
August
September
October
Cotton
spindles
active
during
month.
Imports of raw silk.
Cotton consumption.
Pounds.
Relative.
Bales.
566,914
126 34,358,668
2,227,857
109
525,489
483,193
457,647
399,837
117 34,666,794
107 34,471,515
102 34,040,806
89 33,669,804
2,581,920
2,690,690
1,968,801
1,531,850
126
132
96
75
Relative.
Cotton
spindles
active
during
month.
Imports of raw silk.
Pounds.
Relative.
1920.
November
December
332,057
294,851
74
66
31,654,126
29,879,402
1,319,995
972,011
65
48
1921.
January
February
March
April
366,270
395,563
437,933
408,882
81
94
97
91
31,509,021
32,458,528
32,104,946
32,535,725
708,897
2,327,949
2,201,633
4,857,160
35
122
108
237
TEXTILES—WOOL.
[Wool consumption, Bureau of Markets; idle wool machinery, Bureau of the Census.]
Percentage of idle machinery on first of month to
total reported.
Percentage of idle hours on first of montll to total
reported.
Looms.
Spinning spindles.
Looms.
Spinning spindles.
Consumption 1 Wider
Wider
Sets
Sets
(pounds). than 50- 50-inch
Combs.
of
Combs.
than 50- 50-inch
of
reed
reed
Woolen. Worsted.
inch
Woolen. Worsted. inch
space cards.
space cards.
reed or
reed
less.
space.
space. or less.
1920.
May
July
August .
September
October
November....
December
January
February
March. .
April
May
58, 588,503
15.2
18.2
10.6
6.7
11.5
7.0
37,097,077
38,054,708
36,297,221
38,443,688
28,096,047
42.5
49 5
51.8
49.0
46.9
51.2
32.3
29 9
34.8
34.9
37.7
44.8
38.0
39.6
39.6
38.3
39.5
50.3
35.0
33.4
37.3
26 3
32.8
41.4
42.0
45.5
44.6
43.2
42 8
51.7
32.7
37.6
38.0
26.0
34.8
42.7
54.1
59.7
47.7
60.4
45.9
57.1
38.4
51.0
46.7
53.9
38.5
53.4
57.0
53.9
43.1
36.1
26.2
49.2
48.7
41.7
34.4
28.7
58.1
56.5
46.2
33.0
25.3
52.9
43.8
28.3
18.7
14.2
59.4
58.9
47.2
32.3
23.8
50.8
43.0
33.0
21.8
12.9
66.7
60.0
45.3
38.3
26.6
71.2
66.7
57.1
47.3
36.8
66.1
64.3
50.6
35.8
25.0
62.9
51.0
26.2
11.3
68.4
64.5
50.5
34.1
22.9
65.2
55.3
37.9
25.7
13.5
1921.
47,181
53,071
1
5.4
Converted to grease equivalent basis.
PRODUCTION OF WOOD PULP AND PAPER.
[Federal Trade Commission.]
Wood
pulp.
Newsprint.
1920.
Net
tons.
350,194
Net
tons.
128,269
Net
tons.
95,251
Net
tons.
199,395
Net
tons.
75,347
Net
tons.
33,493
July
August
September.
October
November.
312,334
305,965
293,913
319,877
326,041
129,853
128,818
121,005
124,818
122,993
95,526 218,771
94,424 215,633
94,142 218,743
93,849 196,604
89,564 133,818
73,487
75,226
70,917
73,100
65,920
34,078
33,122
34.207
34,526
31.208
April
Wood
pulp.
Newsprint.
Book.
Paper
board.
Wrap- Fine.
ping.
1920.
December..
Net
tons.
302,527
Net
tons.
124,857
Net
tons.
76,093
Net
tons.
105,227
Net
tons.
54,308
Net
tons.
27,233
1921.
January
February..
March
April
275,353
243,797
262,332
268,806
123,830
103,040
107,532
115,408
64,382
56,687
59,832
51,380
105,806
123,832
139,723
128,186
44,620
46,352
49,879
51,713
22,756
19,242
19,058
15,631
OUTPUT OF LOCOMOTIVES AND CARS.
[Locomotives, reports from individual producers; cars, Railway Car Manufacturers' Association.]
Locomotives.
Output of cars.
Domestic
shipped.
Foreign
completed.
1920.
Number.
36
Number. Number.
96
2,313
July
August
September..
October
November..
122
114
126
198
204
April
54
125
106
73
Domestic.
2,731
3,409
3,955
6,309
6,243
Foreign.
Locomotives.
Total.
Number. Number.
4,247
1,934
434
1,210
1,103
684
Domestic
shipped.
3,165
4,619
5,058
6,993
7,228
1920.
December..
1921.
January
February...
March
April
Foreign
completed.
Output of cars.
Domestic.
Number. Number. Number.
7,551
93
198
154
108
112
138
7,169
6,482
6,041
4,652
Foreign.
Total.
Number. Number.
1,420
8,971
843
518
705
874
8,012
7,000
6,746
5,526
718
FEDERAL. RESERVE BULLETIN.
JUNE,
1921.
VESSELS BUILT IN UNITED STATES, INCLUDING THOSE FOR FOREIGN NATIONS, AND OFFICIALLY NUMBERED BY
THE BUREAU OF NAVIGATION.
[Monthly average, 1911-1913=100.]
Gross
Number. tonnage.
Relative.
1920.
May
July
August
September
October
November
184
185,145
173
178
135
120
119
217,239
259,210
261,962
227,162
213,966
766
1,073
1,084
940
885
Gross Relative.
Number. tonnage.
1920.
December
87
176,903
732
99
116
216,280
121,404
154,864
120,762
132,622
895
538
641
500
549
1921.
January
February
March
April
May
TONNAGE OF VESSELS CLEARED IN THE FOREIGN TRADE.
[Department of Commerce. Monthly average, 1911-1913=100.]
Net tonnage.
American. Foreign.
April
American. Foreign.
2,504,038
1,960,634 4,464,672
109
56.0
211
1920.
December
2,785,615
3,302,538
3,616,267
3,421,531
3,500,312
3,302,367
3,616,052
3,929,602
3,513,599
3,756,512
2,868,294
6,918,590
7,545,869
6,935,130
7,256,824
6,170,661
169
184
170
177
151
47.7
47.9
49.3
48.2
53.5
180
181
186
182
202
1921.
January
February
March
April
2,191,201
2,017,303
2,097,843
2,535,956
1920.
July
August
September
October...
November
Total.
Net tonnage.
PercentRela- age
Relative. Ameri- tive.
can to
total.
Total.
2,949,416 5,735,031
2,454,617
2,149,300
2,396,309
\ 2,473,587
4,645,818
4,166,603
4,494,152
5,009,543
PercentRelaRela- age
tive. Ameri- tive.
can to
total.
140
48.6
183
114
109
110
122
47.2
48.4
46.7
50.6
178
183
176
191
NET TON-MILES, REVENUE AND NONREVENUE.
[United States Railroad Administration; March, 1920, on Interstate Commerce Commission.]
1920.
March
37,991,269,000
40,450,094,000
, 42,706,838,000
40,999,843,000
, 42,562,687,000
, 37,458,630,000
July
August
September.
October
November.
1920.
December
34,722,365,000
1921.
January
February
March
29,817,000,000
24,913,294,000
26,831,000,000
COMMERCE OF CANALS AT SAULT STE. MARIE.
[Monthly average, May-November, 1911-1913=100.]
EASTBOUND.
Grain other than
wheat.
Bushels.
1920.
May
April
May
Relative.
Wheat.
Bushels.
11,904,942
134 13,497,995
7,418,708
12,431,592
146"
Flour.
Relative.
Barrels.
Iron ore.
Total.
Relative. Short tons. Relative. Short tons. Relative.
70
658,910
57
6,683,820
66*
54,540
890,330
77*
95,328
2,652,033
113
7,483,836
107
518,458
3,407,827
49
1921.
8,592,826
12,609,469
45*
WESTBOUND.
Hard coal.
Total.
Soft coal.
Total freight.
Short tons. Relative. Short tons. Relative. Short tons. Relative. Short tons. Relative.
1920.
Mav .
April
May
1921.
202,000
65
109,719
214,776
259,288
60* 2,303,369
531,375
28
isso*
937,374
438,673
2,747,236
38
8,421,210
89
iio*
957,131
6,155,063
65
719
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
PRODUCTION AND SHIPMENTS OF FINISHED COTTON FABRICS. l
March, 1921.
April, 1921.
Total.
White
goods.
Dyed
goods.
7,804,941
4,323,519
45,046,635
21,695,892
12,533,513
5,576,351
543,780
1,336,450
12,717,357
7,449,555
6,305,140
6,629,313
116,480
18,662,349
2,612,022
5,115,430
98,073
404,988
8,015,175
4,704,128
42,978,935
22,093,746
12,318,961
6,727,386
521,468
1,670,942
33,817,794 27,500,360
==============
12,128,460
86,732,621
33,217,845
26,892,862
12,719,303
86,311,438
$276,003
119,672
188,596
106,373
1,808
$814,343
60,916
221,512
1,351
19,829
$374,326
186,977
$1,654,083
553,920
425,235
107,724
21,637
20,307
$236,964
133,278
186,572
128,948
2,196
$750,305
91,363
204,485
859
18,389
$428,945
193,824
$1,571,113
604,942
410,349
129,807
20,585
23,032
$692,452
$1,117,951
$561,303
$2,782,906
$687,958
$1,065,401
$622,769
$2,759,828
63
77
87
.96
68
49
62
44
85
59
79
71
96
39
57
55
74
83
99
69
67
64
48
80
58
77
70
99
42
66
75
64
50
67
70
68
52
66
12,517,785
7,302,473
7,115,387
6,743,059
126,760
18,675,645
3,970,174
5,122,275
116,232
408,843
8,453,394
6,780,303
43,461,754
22,908,747
13,007,284
6,859,291
535,603
1,569,920
12,735,066
7,003,707
5,921,143
8,712,871
100,785
19,846,208
4,608,192
5,955,652
199,602
1,145,464
11,717,251
5,779,556
47,682,478
20,731,920
12,986,854
8,912,473
1,246,249
1,360,850
33,805,464
28,293,169
15,233,697
88,342,599
34,473,572
31,755,118
17,496,807
92,920,824
6,095
5,424
4,426
1,603
5,938
140
2,512
2,612
24,261
12,299
7,306
3,193
5,327
4,262
3,724
1,580
5,324
152
2,230
2,658
22,237
10,891
6,427
3,415
17,548
8,590
2,612
47,457
14,893
7,706
2,658
43,556
3,581
1,968
189
433
3,102
214
278
2,323
16,829
6,029
4,824
1.346
' 7
1,296
3,292
1/845
172
329
2,906
274
298
2,837
17,108
6,687
4,988
1,229
14
1,331
6,171
3,594
2,323
30,331
5,638
3,478
2,837
31,357
. .
5.8
12.0
16.0
8.2
7.0
8.5
8.1
7.0
17.0
6.5
12.0
11.0
8.2
2.1
6.0
5.9
12.0
13.0
18.0
8.7
11.0
7.5
17.0
17.0
9.6
11.0
10.0
18.0
13.0
7.9
Average for all districts
9.2
8.6
8.4
10.0
8.8
17.0
10.0
Total finished yards billed during
month:
District 1
2
3
5 .
6
Printed
goods.
White
goods.
Dyed
goods.
14,560,030
7,425,289
6,246,321
5,500,003
86,151
19,056,336
2,461,016
5,449,031
76,348
457,629
8
Total
Total finishing charges billed during
month:
District 1
2
3
5
6
8
Total
Total average per cent of capacity operated:
District 1
2 ...
3
5
6
8
Average for all districts
Total gray yardage offinishingorders
received:
District 1
2
3
5
6
8
Total
Number of cases of finished goods
shipped to customers (case equals
approximately 3,000 yards):
District 1
2
3..
5
6
8
Printed
goods.
Total.
398
Total
586
Number of cases of finished goods held
in storage at end of month:
District 1
2
3
5
6
8
Total
Total average work ahead at end of
month (expressed in days):
District 1
2
3
5
6
8
I
7.5!
i The National Association of Finishers of Cotton Fabrics, at the request of the Federal Reserve Board, have arranged for a monthly survey
within the industry. The results of the inquiries are herewith presented in tabular form. The secretary of the association makes the following
statement concerning the tabulation:
The accompanyingfiguresare compiled from statistics furnished by 34 out of 58 member firms of this association. It is probably fair to state
that in the absence of having specific detail at hand, but according to our best estimate, it is probably well within the fact that thefiguresgiven
for the various classes of work would cover, approximately, the following percentages of the entire industry: White goods, 72 per cent; dyed goods,
62 per cent; printed goods, 30 per cent. Thefiguresgiven represent reports from exactly the samefinishersfor the two months, both for the totals
and for the subdivisions and, therefore, are strictly comparable.
NOTE.—Many plants were unable to give details under the respective headings of white goods, dyed goods, and printed goods, and reported their
totals only, therefore the column headed " Total" does not always represent the total of the subdivisions but is a correct total for the district.
720
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
REPORT OF KNIT-GOODS MANUFACTURES.
The total production of winter and summer
underwear for the 6 months ending April 30
was as follows:
Per cent
normal
Dozens. of
production.
Unfilled orders 1st of month
New orders received during month
437,775
375,948
Total (A)
Number
of mills
reporting.
Shipments during month.
Cancellations during month
219,270
4,375
Total (B)
191,831
98,671
23.2
11.0
148,023
248,431
421,140
401,938
109,937
292,001
16.4
28.0
50.1
49.6
35.6
58.3
1921.
January
February
March
April
Winter underwear (April)..
Summer underwear (April).
Order and production report for month
ending April 30, 1921, follows. The number
of mills reporting was 39.
34.5
.7
223,645
Balance orders on band May 1 (A minus B)
Production..
1920.
November.
December..
Actual
produc- Perofcent
tion
(dozens). normal.
59.2
813,723
590,078
299,183
47*2
Thirty-two representative mills which reported for March and April furnish the data
for the following table:
[In dozens.]
March
April
(32 mills). (32 mills).
Unfilled orders first of month.
New orders
Shipments
Cancellations
Production..
361,076
354,959
261,893
4,937
285,515
Gam.
423,727
363 543
194 130
4,279
275,382
Loss.
62,651
8 584
67 763
'658
10,133
RETAIL TRADE.
In the following tables is given a summary
of the data obtained from representative
department stores in each Federal Reserve
district, showing the activity of retail trade
during the past several months. In district
Nos. 1,2,5,6,9,11, and 12 the data were received in (and averages computed from)
actual amounts (dollars). In districts Nos.
3, 4, 7, 8, and 10 the material was received in
the form of percentages, the 1921 averages for
the cities and districts computed from such
percentages being weighted according to
volume of business done during; the calendar
year 1920, and the averages for the severa
months in 1920 by similar figures for the
calendar year 1919. For the month of April
the tables are based on reports from 24 stores
in district No. 1, 42 in district No. 2, 47 in
district No. 3, 15 in district No. 4, 25 in district No. 5, 19 in district No. 6, 20 in district
No. 7, 11 in district No. 8, 17 in district No. 9,
15 in district No. 10, 19 in district No. 11, and
29 in district No. 12. The number of stores
varies somewhat, due to the inclusion of new
stores from time to time in the reporting list.
CONDITION OF RETAIL TRADE IN THE FEDERAL RESERVE DISTRICTS.
(/Minus sign denotes decrease.)
Percentage of increase in net sales as compared with corresponding period previous year.
July 1, 1920, to
close of—
District and city.
Oct., Nov.,
1920. 1920.
District No. 1:
Boston
Outside
0.1
2.2
District . . .
District No. 2:
New York City and Brooklyn.
Outside
District
.6
1.7
15.4
6.2
District No. 3:
Philadelphia
Outside
District
District No. 4
..
Dec,
Jan., Feb.,
1920.
1921.
Mar.,
1921.
1921.
Apr.,
1921.
Oct., Nov.,
1920. 1920.
2.1 - 1 . 3
9.7
11.0
-3.8
11.1
9.0
1.9
10.1
10.4
7.6 - 3 . 6 — 6.5 — 1.1 - 5 . 8 - 2 . 8
5.8
.3
9.5 5.9 - 1 . 5
5.2
3.0
19.6
10.0
15.0
1.7
1.4
-6.4
11.4 -
.4
5.4
10.8
-10.1 - 6 . 0
1.5
Q
1.5 -
6.5
18.9
8.5
8.5
-
.5
-5.3
1.0
10.8
2.9
3.3
3.4
4.7
.9 - 2 . 5
4.6
5.8
1.8
11.6 - 1 . 6
2.9
-4.6
15.8
8.5
6.1
3.1
3.8
20.8
26.1
14.7
3.6
6.4 -
.4
-
Dec,
1920.
Jan. 1,1921, to
close of—
Jan.,
1921.
Mar.,
1921.
7.7
5.5
3.6
9.1 - 6 . 2
-5.5
5.4
8.5
5.0 -10.1 -
Apr.,
1921.
1.5
3.5
2.7
1.4
3.2 - 6 . 5
14.3 - 1 . 5
-4.6
-4.5
-3.8
22.8
1.6
.7
10.0
5.5 - 5 . 3
-3.5
-3.4
4.4
1.7
2.0
2.1
1.8
3.7
3.6
2.0
2.3
,
4.3
2.3
12.0
18.5
7.7
21.6
9.1
2.9
3.3
17.3
14.6
14.1
3.1
. 8 i 23.9
24.8
22.0
3.6
.4
Feb.,
1921.
...
2.2
-
2.1
121
FEDERAL RESERVE BULLETlK.
JUNE, i§2i.
CONDITION OF RETAIL TRADE IN THE FEDERAL RESERVE DISTRICTS—Continued.
(Minus sign denotes decrease.)
Percentage of increase in net sales as compared with corresponding period previous year.
Jan. 1, 1921, to
close of—
J u l y 1, 1920, to
close of—
District and city.
Oct., Nov., D e c , Jan.,
1920.
1920.
1920.
District No. 5:
Baltimore
Richmond
Washington
Other cities..
5.9
— 4.2
9.3
4.0
12.4
District
District
District
District
District
District
District
Feb.,
1921.
1921.
No. 6
No. 7
No. 8 .
No. 9...
No. 10
No. 11
25.1
8.3
10.5
-2.9
— 1.9
16.0
. . . ..i
District No. 12:
Los Angeles...
San Francisco
Oakland ..
Sacramento
Seattle
Spokane
13.1
4.9
31.2
13.7
9.9 - 3 . 8
7.2
2.3
-ie.T -18.7
11
5
56
8.9
9.1
14.7
Salt Lake City
District .
8.2
Apr.,
1921.
5 3 -2.2
14.2
6.3
8.4
5.5
9.4
15.9
6 8
3.1
5.3
3.7
2.7
7
8.6
14.6
1.4
3.0 - 9 . 0
17.6
9.6 -10.5 - 5.4
5.3 — 3.8 — 3.1
10.8
2.9
.5 -12.3 - 7 . 0
9 2 — 5.1 — 11.6
4.1
12.7 - 2 . 9 - 8 . 9 - 4 . 6
19.3
11.5
22.0
9.9
-14.6
46
.
5.4
Mar.,
1921.
Oct., Nov., D e c ,
1920. 1920. 1920.
13.5 ' 10.4
13.6
46
19 —
4.2
8.8
9.4
5.6
7.4
10.8
4.9
6.9
8.7
5.4
6.4
5.2
3.6
— 9.0 — 5.4
- 1 0 . 5 ! - 4.7
— 3.8—3.7
-12.3 -10.9
— 11.6 — 1.8
-8.9 -8.4
.6
9.7
-5.2
2.0
- 5.1
- 15.7
— .9
3.4
17.1 14.6
9.9
33.9
-12.1
.4 - 3.1 - 9 . 6
15.4
— 10.4
8.2
.9
1.4
21. 3
-6.2 -7.3
16.1
-16.8
-23.4 - 2 . 4 " - 1 1 . 6 - 1 6 . 1 - 7.3
4 6
6 4
94
10 1 12 2
- .6 - 5.2
1.7 - 8 . 7
14.0
33.7
11.7
18.2
3.8
14.8
16.8
1921.
28.5 17.1 13.3 11.9
8.7 -12.1 - 6 . 5 - 4 . 3
22
-10.4
9.8
-4.2
7.0 -16.8
-11.1 -23.4 -*9." 3* -15.6
8 6 — 10 1
84
1.3
12.2 14.6 - .6
6.0
1.9
12.9
17.9
.6 - 9 . 3
1921.
- 8.7
-5.6
— 1.7
- 10.7
- 1.8
- 11.2
52
21.6
11.3 - 4 . 3 -14.3 - 2 . 4
1921.
-4.7
13.3
— 1.7
— 11.8
— 3.9
-11.4
18.8
24.2
13.8
-19.5
- 3.1
— 2.9
— 5.4
— 2. 8 '
-17.7
Feb., Mar., Apr.,
9.3
4.0
59
— 4.2
19.7
32.6
16.5
- 5.6
-3.2
— .7
-11.2
-6.1
-16.0
Jan.,
1921.
15.3
18.1
13.3
7.6
.7
10.5
5.0 - 1 4 . 3 -
5.9
.1
1.6 - 3 . 8
Percentage of increase in stocks at close of month compared with—
Oct., Nov., Dec,
1920. 1920.' 1920.
District No. 1:
Boston ..
0 utside
9.5
District
District No. 2:
New York City and Brooklyn
Outside
District
11.6
8.2
17.2
15.6
5.1 - 2 . 3 - 9 . 5 - 1 6 . 5 - 2 3 . 2 - 2 2 . 0
3.8 -12.7 - 2 0 . 0 - 2 3 . 0 - 1 7 . 9 - 2 0 . 7
16.7
4.6 -
District
16.0
10.1
District No. 4
3.4.9
22.5
7 -10.7 -
15.5 - 6 . 4
2.8
4.9
-18.9 -12.7
1.0 - 4 . 8 -20.4 - 8.1
4 - 7 . 0 -24.0 - 6 . 1
6.3
1.3
8.3
9.0
5.1
1.1
4.2
9.5
5.4
7.3
1.4
.8
5.6
5.9
1.3
3.1
7.9
4.2
6.9
7.7
9.8
13.9
8.8
7.8
7.1
10.1
3.6
4.3
5.7
8.9
8.4
4.2
6.0
- .8
1.4
- 1.8
- 3 . 3 - .8
1.2
-8.8
10.1
5.0
-7.9
4.4
9.2
9.6
6.2
.4
- 2.9
6.4
9.3
1.7
.5
6.2
4.5
4.4
-4.6
-11.9
-19.0
11.6 - 4 . 0
-13.2
-17.1 -17.8
4.4
-18.7
4.8 - 6 . 4
-20.0 -14.6
-7.0
15 2
-18.7
-32.1
-19.7 -24.0 -28.2 -26.0
13 fi
16 6
13 1
9 8
—28.6 - 2 9 . 9 —26. 2 - 2 9 . 0
-20.3 -21.4 -22.6 -23.3
21.6
15.4
8.3
17.5
.5
40.1
16.4 —29.7 — 4 9
19.6 - 9.3
8.0
-21.1
3.8
-*3."6*
12.3 - 2 L 4 "
—"i.'i* --12.2
-3.6
33.6
12.7
- 1.8
- 5.0 -15.5 -13.8
- 4.1 —20.0 - 7 . 4
. 9 - 4 . 7 - 1 7 . 3 -11.5
5. 3 - 4 . 2 —22. 2 - 2 4 . 8 - 2 5 . 9 - 2 5 . 8
20.1
3.5
1.1
20.5
2.2
11.7 - 2 0 . 4
.9
8.0 - 1 0 . 8 - 1 2 . 4 - 1 4 . 3 - 1 3 . 0
16.3 - .2 - 8 . 3
39.7 , .27.7 - 1 5 . 5
9:9
17.0
16.2
7.1 — 3.5 — 10.9
9.4 - 1 4 . 9
11.8
31.5
8.8 - 1 2 . 9
15.6
15.5 - 6.6
15.4 - 5.7
4.0
30.1
51.7
30.5
12.0
25.0
42.3
District
9.0 -18.2 -14.5
- 2 . 0 -20.5 - 8 . 2
8.5
District No. 6
Oakland.
Sacramento
Seattle
Spokane
Salt Lake City
3.0
5.3
15.1
fi?i*n Francisco
— 4.2
Apr.,
1921.
-21.1 - 7 . 6
District
District No. 12:
Los An°*clcs
-18.5
Feb., Mar.,
1921. 1921.
Dec,
1920.
.5 - 5 . 6
.......
.
1.6 - 1 6 . 0
Jan.,
1921.
Oct., Nov.,
1920. 1920.
4.5 - 1 2 . 0 - 1 7 . 8 - 2 2 . 0 - 2 1 . 6
District No. 5:
Baltimore
.....:.
Apr.,
1921.
7.1 — 1.7 — 10.7 — 3.7 — 18.2 — 18.9
3.7 - 1 0 . 3 - 1 7 . 5
2.0 - 1 0 . 6
5.7
17.4
No 7
No 8
No 9
No. 10
No. 11
Mar.,
1921.
10.6
Outside.,
District
District
District
District
District
Feb.,
1921.
Jan.,
1921.
15.9
District No. 3:
Washington
Other cities
Previous month.
Same month previous year.
District and city.
.3
-13.9
-13.1
-11.5
—23.1
-18.2
-15.5
-12.7
-14.3
-9.8
-14.8
-20.9
—17.7
— 12. 4 — 12.8
-16.5 -21.9
-27.8 -27.2
-30.3
- 2 7 .'5* - 3 3 . 8
-14.0 -20.9
-15.1
.4 - 7 . 6
.1 - 7 . 7
.8
-11.6
1.0
-21.3
- 1 2 . 9 ! 1.8
5
-19.1
- 2 1 . 6 i - 1.9
- 1 8 . 1 ! - 3.0
i -
-6.7
- 5.9
-4.3
-4.2
- 5.0
- 9.3
-25.5 -16.2
-30.8
-24.0
-18.8
-18.7
-23.9
-28.8
.5
3.6
.2 - 4 . 2 -45.4
-12.8 i
6.1
15.4 .8 -14.7 - 9.0
-13.8
4.2
-10.9
.6 - 3 . 1
-23.5 !
.3
-23." i"
-30.5
2.8 -"2." 9* -22.5 — 31-3" """6*6"
-28.7
4.4
- 1 7 . 7 - 2.7 - 4.2 - 3.6
2.1
-22.4
-11.9
-21.6 -13.9
1.2 -
3.4 -14.3 - 4 . 1
2.2
3.1
7.7
6.8
3.1
1.4
6.6
4.5
3.0
7
.2
2.4
3.0
2.6
9.2
1.2
3.0
722
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
CONDITION OF RETAIL TRADE IN THE FEDERAL RESERVE DISTRICTS—Continued.
(Minus sign denotes decrease.)
Ratio of average stocks at close of each month to
average monthly sales for same period (per cent).
July 1 1920, to close
of—
District and city.
District No. 1:
Boston
Outside
Ratio of outstanding orders at close of month to total
purchases during previous clendar year (per cent).
Jan. 1, 1921, to cloSCs of—
Oct., Nov., Dec,
1920. 1920. 1920.
Jan.,
1921.
388.4
482.6
368.4 329.9
456.6 452.0
270.2 325.3 300.7
392.9 473.7 445.8
295.5
426.8
297.2
Feb., Mar., Apr.,
1921. 1921. 1921.
Jan.,
1921.
Feb.,
1921.
3.6
5.1
4.5
7.4
8.6
Oct., Nov., Dec,
1920. 1920. 1920.
7.5
10.8
5.4
10.4
Mar., Apr.,
1921. 1921.
5.7
11.2
5.2
9.6
District
District No. 2:
New York City and Brooklyn
Outside
415.6
398.6
332.5
324.7
9.1
7.7
4.8
8.1
6.4
5.8
479.4
441.3
464.1 361.1 315.8
430.6 347.7 351.3
322.5
394.4
9.2
6.6
6.9
4.1
5.3
3.1
5.5
4.1
7.3
7.2
7.1
5.7
6.7
10.0
District
District No. 3:
Philadelphia
Outisde
466.9
452.3
323.3 310.1
350.6 407.7
358.0 325.0 328.7 330.6
342.5
8.1
5.5
4.5
5.1
7.3
6.7
6.5
4.7
2.9
4.9
4.1
4.4
4.8
7.9
6.2
7.6
6.1
8.6
4.9
357.9
360.4 322.6
520.5 458.6
District
District No. 4
District No. 5:
Baltimore
Richmond..
Washington
Other cities
District No. 6
District No. 7
District No. 8
District No. 9
District No. 10
District No. 11
District No. 12:
Los Angeles
San Francisco
Oakland
Sacramento
Seattle
Spokane
Salt Lake City
District
281.9 314.3
479.3 508.7
330.5 313.5
465.8 426.4
437.2
418.0
371.1
357.6
365.6 361.9
340.4
5.9
4.0
4.6
4.6
7.5
7.3
7.8
466.8
452.1
398.5
306.4
353.6
345.9 327.4
7.6
5.9
4.7
7.1
7.0
7.7
5.3
311.8
403.5
351 2
407.1
341.6
403.1
370 9
434.3
324.5
354. 4
341 3
402.2
327.1
355.9
344 1
400.5
7.2
5.4
3.9
7.9
6.1
4.8
6.5
5.5
42
4.6
48
368.7
343.2
j 1
5.4
6.9
4.4
454.5
386.6
344.5
345.3
7.1
3.0
2.7
6.0
6.6
5.4
5.4
403.9 381.6
371.0 431.7
395.8 324.4
307.8
391.0
245.1
549.1 405.3 387.3 428.7
544.3 404 4 360.2 385.9
336.5 407.9 388.6 388.1
343.3
454.0
526.8
416.7
465.3
383.7
480.8
357.6
450.3
395.7
359.2
363.6
6.9
5.1
6.1
12.4
3.1
4.1
5.8
6.5
3.9
11.9
1.9
3.2
4.9
5.6
3.8
18.7
2.3
2.7
3.1
10.8
3.4
4.2
22.1
7.0
6.1
11.0
8.9
5.5
11.8
6.5
6.4
12.7
4.1
5.2
6.4
5.1
5.1
5.8
7.1
3.5
4.8
4.6
462.5 478.0
511.9 515.8
732.5 567.4
387.4
502.5 454.5
579.0 544.3
432.5
434.3
354.1
424.2
427.2
355.6
444.6
467.1
353.2 367.9
401.5 402.6
455 3 454.3
9.3
13.6
7.6
9.6
10.6
4.3
6.9
4.4
11.5
8.2
10.2
6.9
9.8
7.5
6.4
7.0
1.6
.1
2.7
6.0
5.2
5.6
63
6.7
7.9
5.4
8.6
7.8
8.7
489.0
District
358.1
467.3
346.9
369.6
490.5
413.7 463.0 468.1 438.0 399.1
458.5 620 5 610 9 621 6 617 8
601.4
488.5 490.7
502.4
448.2
404.7
477.9
2.6
9.8
7.0
5.8
5.1
4.9
WHOLESALE TRADE.
PERCENTAGE OF INCREASE (OR DECREASE) IN NET SALES IN APRIL, 1921, AS COMPARED WITH THE PRECEDING MONTH
(MARCH, 1921).
Groceries.
Dry goods.
Hardware.
District.
Boots and
shoes.
Furniture.
Stationery.
Drugs.
Farm implements.
Auto tires.
NumNumNumNumNumNumNumNumPer Number of Per ber of Per ber of Per ber of Per ber of Per ber of Per ber of Per ber of Per ber of
cent. firms. cent. firms. cent. firms. cent. firms. cent. firms. cent. firms. cent. firms. cent. firms. cent. firms.
-14.9
-6.4
-16.2
-6.7
-12.4
-13.8
No.3
No.5
No.6
No. 10
No. 11
No. 12
51
9
20
3
17
30
-27.2
-25.5
-25.8
+ 1.4
+11.4
9 -1.7
15 10.6
-18.1
5 -9.7
12 - 1 . 7
25
9 -21.4
13 -33.4
3
2
24 - 6 . 4
7 +54.8
7
-20.9
18 - 1 . 2
3
3 -19.6
21 - 1 . 1
6
11
- 2.6
- 4 . 0
2
-0.9
27
14
PERCENTAGE OF INCREASE (OR DECREASE) IN NET SALES IN APRIL, 1921, AS COMPARED WITH APRIL, 1920.
Groceries.
District.
No.3
No. 4..
No.5..
No.6..
No. 7 . .
No. 10..
No. 11..
No. 12.
Dry goods.
Hardware.
Boots and
shoes.
Furniture.
Stationery.
Drugs.
Farm implements.
Auto tires.
NumNumNumNumNumNumNumPer NumPer Number of cent.
ber of Per ber of Per ber of Per ber of Per ber of Per ber of Per ber of Per ber of
cent. firms.
firms. cent. firms. cent. firms. cent. firms. cent. firms. cent. firms. cent. firms. cent. firms.
-38.4
-37.7
-31.0
-47.5
-42.8
-32.2
-48.0
-36.2
51
14
9
20
26
3
1?
30
-4.2
-39.1
-39.7
-35.3
-40.7
-15.2
-18.7
5 -21.9
9 -22.7
15 -44.0
12
-40.0
5 -30.0
12 -27.5
25
8
9 -38.4
13 -43.1
-24.8
3
2
24 - 8 . 3
7 -52.1
7
10
-48.1
18 -28.6
-23.4
7
3
3 -29.3
21 -10.3
6
11 - 7 . 8
-83.1
27
2
- 8.0
14
723
FEDERAL, BESERVE BULLETIN.
JUNE, 1921.
COMPARATIVE WHOLESALE PRICE LEVELS IN PRINCIPAL COUNTRIES.
The foreign index numbers published below
are constructed by various statistical offices
according to methods described in most cases
in the BULLETIN for January, 1920. A description of the method used in the construction of
the Swedish index number appeared in the
BULLETIN for February, 1921, for the new
Italian index number in the April, 1921, issue
of the BULLETIN, and the method used by the
Frankfurter Zeitung in the case of the German
index number was described in the BULLETINS
for February and March, 1921. Complete
information regarding the computation of the
United States Bureau of Labor Statistics appears in the publications of that bureau, and a
description of the index number of the Federal
Reserve Board may be found in the BULLETIN
for May, 1920. Details as to the method used
by the 0konomisk Revue in constructing its
index of wholesale prices in Christiania are not
available in this country. The Danish index
has been constructed only recently, is based
upon the prices of 33 commodities, and is
roughly weighted according to consumption.
The new British index number, compiled by
the Board of Trade, will be found on p. 724
of this issue of the BULLETIN. It is not included in the table below as it can not be referred back to a definite prewar base. In the
case of the two American index numbers, 1913
is used as the basis in the original computations. In the other cases in which 1913 appears
as the basis for the computation the index
numbers have been shifted from their original
bases. The computations in these cases are,
therefore, only approximately correct. In a
few cases July, 1914, or the year immediately
preceding that, is used as the base. The figures
are for the most part received by cable, and the
latest ones are subject to revision. In cases
where the index numbers were available they
have been published for the war years in various
issues of the BULLETIN in 1920.
In the following table the all-commodities
index numbers for the whole series of countries
appear together to facilitate the study of
comparative price levels.
INDEX NUMBERS OF WHOLESALE PRICES (ALL COMMODITIES).
United United
States; States;
Federal Bureau of
Reserve Labor
Board Statistics
(90 quo- (315 quotations). 2 tations). 2
1913
1914 .
1915
1916
1917
1918
1919. .
1920
100
France; Italy; 1 Germany;
Bulletin
Prof.
de la Sta- Bachi (38 Frankfurter
tistique commodi- Zeitung
Generate ties until (77 com(45 com- 1920, 76 modimodi-3
thereties).'*
ties).
after).8
Sweden;
Svensk
Handelstidning
(47 quotations). 5
Australia;
ChristiDenania,
Japan; Commonwealth
Norway; mark;
Bank of Bureau
0kono- Finans- Japan
for Census
misk
tidende Tokyo (56
Revue (33 comand Sta(93 com- modi- commodi- tistics (92
ties).a commodimodities).7
ties).*
ties).«
100
138
164
228
293
294
362
100
96
97
117
147
192
236
259
217
225
233
234
236
230
215
208
377
383
385
394
398
403
374
300
272
248
239
235
230
226
221
206
344
319
312
297
341
290
280
270
201
195
191
190
191
196
192
181
171
100
100
101
124
176
196
212
243
100
101
126
159
206
226
242
291
100
101
137
187
262
339
357
510
100
95
133
202
299
409
364
624
1 544
313
305
300
299
298
292
282
263
243
588
550
493
496
501
526
502
461
435
664
660
632
604
625
655
659
670
655
1,604
1 714
1,473
1 495
1,549
1,582
1,604
1,670
1,681
354
361
366
363
365
362
346
331
354
368
382
409
417
425
419
403
173
265
272
269
262
250
242
225
207
189
299
163
154
150
143
142
178
167
162
154
151
232
215
208
199
191
407
377
360
347
328
642
613
604
584
1,626
1,495
1,440
1 429
1^429
267
250
237
229
218
...
. .
United
Kingdom;
Statist
(45 commodi-3
ties).
206
233
9
100
8 100
116
145
185
244
339
330
347
10
115
159
233
341
345
322
11
12 100
141
132
u 155
170
180
218
Canada; Calcutta,
India;
Depart- Department of ment
of
Labor Statistics
(272
comquota- (75
moditions).&
ties).'
100
101
110
135
177
206
217
246
i»100
204
1920.
April
May
June
July
August
September.
October
November.
December..
1921.
January
February..
March
April
May
1
263
264
258
250
234
226
208
190
Average for the month.
End of month.
Beginning of month but not always the first.
* Middle of month.
• End of year and end of month.
7
First of month.
»9 July 1,1913, to June 30, 1914=100.
Middle of 1914= 100.
u Dec. 31,1913-June 30,1914=100.
u July 1, 1912-June 30, 1914=100.
" J u l y , 1914=100.
" E n d of July, 1914=100.
" Last six months of 1917.
200
210
206
209
209
208
206
194
180
208
199
194
178
174
183
187
183
Index numbers for 1920 and thereafter based upon prices of 76 commodities. Computations arrived at by the method described on p . 465 of
the BULLETIN
for April, 1921.
8
8
4
547
197
261
263
258
256
244
241
234
225
214
124:
FEDERAL, RESERVE BULLETIN-.
In the following tables the index numbers for
individual groups of commodities are given for
each country separately. Reference should be
made to the preceding table for the " all commodities" indexes. In the case of the Italian
group index numbers, Prof. Bachi's new computations only are given. These can not be
JUNE, 1921.
referred back to the 1913 base and it is therefore impossible to compare present levels with
prewar levels in these cases. No group index
numbers are compiled by the Bank of Japan
and only four foods and materials in the case
of the Danish index number of the Finanstidende.
GROUP INDEX NUMBERS—UNITED STATES, BUREAU OF LABOR STATISTICS.
[1913=100.]
Farm
products.
Date.
1913
1914
1915
1916
1917
1918
1919
1920
1920
April
May
June
July
August
September
October
November
December
Lumber
and
building
material.
Metals and
metal
products.
Fuel and
lighting.
House
Chemicals
and drugs. furnishing
goods.
100
Miscellaneous.
100
103
105
122
189
220
234
218
100
103
104
126
176
189
210
239
100
98
100
128
181
239
261
302
100
96
93
119
175
163
173
238
100
87
97
148
208
181
161
186
100
97
94
101
124
151
192
308
101
114
159
198
221
179
210
100
99
99
115
144
196
236
366
100
99
99
120
155
193
217
236
246
244
243
236
222
210
182
165
144
270
287
279
268
235
223
204
195
172
353
347
335
317
299
278
257
234
220
213
235
246
252
268
284
282
258
236
195
193
190
191
193
192
184
170
157
341
341
337
333
328
318
313
274
266
212
215
218
217
216
222
216
207
188
331
339
362
362
363
371
371
369
346
238
246
247
243
240
239
229
220
205
136
129
125
115
117
162
150
150
141
133
205
198
192
186
181
234
218
206
199
194
152
146
139
138
138
239
222
208
203
202
182
178
171
168
166
283
277
275
274
262
190
180
167
154
151
1921
January
February
March
April
May
Cloths and
clothing.
Food,
etc.
ALL COMMODITIES AND GROUP INDEX NUMBERS—UNITED KINGDOM, BOARD OF TRADE.
[1920=100.]
Cereals.
1921.
January
February
March
April
90.5
78.4
75.5
73.9
1
Meat
and
fish.
Other
foods.
Total
food.
Iron
and
steel.
88.0
81.6
82.0
80.2
94.8
88.2
83.8
81.8
79.0
69.5
63.6
108.0
100.8
95.5
92.7
Other
metals
Other
and Cotton. texmintiles.
erals.
85.5
80.7
77.2
46.7
40.6
36.1
37.8
61.1
55.6
49.3
47.2
Other
articles.
Total,
not
food.
80.4
78.6
74.7
71.4
73.1
67.3
61.4
159.3
All
articles.
1
80.1
73.4
68.6
66.5
Based on the assumption that prices of coal and coke were the same as in March, 1921.
GROUP INDEX NUMBERS—UNITED KINGDOM, STATIST.
[1913-100.]
Date.
1913
1914
1915
1916
1917
1918
1919
1920
Vege- Ani- Sugar, Food- Min- Tex- Sun- Matetable mal coffoods. foods. fee, stuffs, erals. tiles. dries. rials.
tea.
100
110
155
193
252
248
252
321
100
100
125
152
192
210
215
264
100
107
130
161
213
238
275
366
100
105
137
169
218
229
238
301
100
90
109
140
152
167
190
269
100
97
111
152
228
265
271
299
100
105
131
163
212
243
268
290
100
98
119
153
198
225
243
285
346
351
359
343
265
244
244
278
392
473
496
425
315
318
325
325
263
273
269
276
354
308
298
321
311
282
277
311
298
285
283
1920.
April
May
June
July
..
Date.
Vege- Ani- Sugar,
table mal cof- Food- Min- Tex- Sun- Matestuffs. erals. tiles. dries. rials.
foods. foods.
1920.
August
September.
October
November.
December..
317
319
334
308
257
295
291
290
293
262
404
334
257
238
212
319
308
302
291
253
281
283
276
265
254
298
286
261
212
205
278
279
268
253
248
285
282
266
245
237
1921.
January
February..
March
April
May
234
203
214
212
211
283
270
262
249
223
192
187
182
180
158
251
234
232
225
209
225
200
179
176
177
198
179
171
172
164
230
224
221
199
192
213
209
193
184
179
725
FEDERAL RESERVE BULLETIN.
JUNE., 1921.
GROUP INDEX NUMBERS—FRANCE, GENERAL STATISTICAL BUREAU.
[1913=-100.]
Sugar,
Raw
Ani- Vege- coffee,
Min- Tex- Sun- matemal table and Foods
tiles.
rials.
(20).
erals.
dries.
foods. foods.
(25).
cocoa.
Date.
1913
1914
1915
1918
1917
1918
1919
1920
May
June
July
100
103
126
162
215
286
392
503
100
103
126
170
243
298
313
427
100
106
151
164
201
231
253
422
100
104
131
167
225
281
336
459
100
98
164
232
271
283
272
449
100
109
132
180
303
460
444
737
100
99
145
199
302
420
405
524
100
101
145
206
291
387
373
550
400
370
424
392
405
472
434
432
459
428
469
841
734
746
601
517
500
614
540
548
1920
482
501
GROUP INDEX NUMBERS—ITALY, RICCARDO BACHI.
[1920=100.]
Date.
Sugar,
Raw
Ani- Vege- coffee,
Foods Min- Tex- Sun- mate
and
rials
(20).
erals.
tiles.
dries.
foods. foods. cocoa.
(25).
1920.
August
September
October...
November.
December.
515
531
533
519
515
359
412
421
390
360
399
544
422
377
355
432
487
469
442
424
475
468
453
424
385
737
715
637
510
475
524
540
527
498
471
558
558
528
476
444
1921.
January...
February..
March
April
May
483
452
408
396
372
334
317
322
348
346
337
338
367
359
317
397
378
366
372
353
341
300
289
281
266
460
398
375
314
282
445
422
392
371
355
415
378
355
328
309
GROUP INDEX NUMBERS—GERMANY, FRANKFURTER
ZEITUNG.
[Middle of 1914= 100.]
Min- Build- Other
All
Is ing vege- Sun- comVege- AniTex- ers
table dries. modand matetable mal Chemicals.
tiles.
met- rials. prodfoods. foods.
ities.
ucts.
als.
1920.
April
May. ..
June
July. .
August
September.
October...
November.
December.
102.7
102.2
100.2
96.8
100.7
104.8
107.1
107.7
106.9
83.6
92.9
101.1
100.3
103.4
108.8
108.0
124.1
126.4
1921.
January...
February..
March
April
May
106.7
103.4
107.8
105.9
101.5
120.7
119.5
117.4
115.9
112.1
110.4 130.8 115.8
122.6 104.9 113.2
112.8 90.8 99.1
100.0 88.3 95.5
102.3 94.9 96.6
100.1 99.6 103.7
103.4 97.9 106.5
107.7 94.0 101.4
102.8 81.9 92.7
98.1
89.2
86.9
82.9
76.2
77.4
65.4
63.5
56.5
46.6
88.2
79.5
72.0
69.0
62.3
96.4 99.8 104.2 106.30
101.8 97.2 107.8 105.73
106.3 95.9 105.7 101.18
108.4 90.2 104.9 97.77
109.9 91.9 101.4 100.13
109.9 97.5 102.1 104.98
112.8 100.5 105.4 105.47
112.6 108.7 105.2 107.33
112.6 121.8 106.8 104.97
113.3
117.0
112.9
109.1
106.8
123.4
127.3
123.2
111.3
110.0
107.1 102.89
106.7 98.23
103.9 96.66
105.1 93.51
95.4 87.59
Agricul- Textiles,
tural
Minerals. Miscellaneous.
products. leather.
1920.
Average for the year
Beginning of—
April
May
June
July
August
September
October
November
December
1921,
Beginning of—
January
February
March
April
May....
1,232
3,175
1,733
1,440
1,186
1,178
1,125
1,283
1,309
1,318
1,344
1,450
1,555
4,114
3,243
2,670
2,561
2,643
2,807
2,943
3,025
2,698
1,888
1,860
1,538
1,552
1,566
1,650
1,734
1,678
1,636
1,417
1,417
1,642
1,625
1,617
1,608
1,592
1,658
1,625
1,353
1,265
1,204
1,195
1,178
2,643
2,507
2,371
2,153
2,153
1,678
1,580
1,552
1,608
1,566
1,575
1,525
1,517
1,500
1,633
GROUP INDEX NUMBERS—SWEDEN, SVENSK HANDELSTIDNING.
[July 1, 1913—June 30, 1914=100.]
Vegetable
food.
Date.
1913-14..
1Q14 1
1915
1916
1917
1918
1919
1920
1920.
April .
May.
June
July.
August
September
October. . . .
November
December
1921.
January
February
March.
\pril .
Mav
. .
. ..
Animal
food.
Raw materials for
agriculture.
Coal.
100
123
177
266
551
856
804
100
136
151
152
181
221
261
262
100
101
140
182
205
419
409
296
100
114
161
180
198
304
340
312
265
269
250
252
271
273
258
264
217
284
283
273
277
307
312
306
290
283
320
320
311
312
310
308
309
303
301
1,008
1,069
1,252
1,252
1,117,1
1,085"
1,026
244
231
238
232
221
266
241
229
231
281
248
240
236
371
362
279
291
217
245
269J
1,007
910
602
Metals.
Building
material.
Wood
pulp.
Hides and
leather.
Textiles.
Oils.
100
109
166
272
405
398
258
278
100
104
118
165
215
275
286
371
116
233
267
300
308
675
100
118
158
229
206
195
211
215
100
103
116
166
247
100
111
120
149
212
324
294
283
324
318
293
286
273
256
253
247
367
367
381
388
388
388
390
387
362
767
788
778
767
756
753
740
609
598
263
252
212
202
191
180
166
161
156
368
374
368
336
328
310
250
233
206
275
275
303
303
322
340
340
332
328
230
204
185
178
153
320
319
298
236
237
520
511
510
510
286
131
108
85
84
106
169
147
134
125
132
328
318
268
264
238
i Average for 6 months ending Dec. 31, 1914.
100
726
FEDERAL EESERVE BULLETIN.
JUNE, 1921.
GROUP INDEX NUMBERS— CHRISTIANIA, NORWAY, 0KONOMISK REVUE.
[Dec. 31,1913-June 30,1911=100.]
Fuel.
Animal
food.
Date.
r
Foodegetable ituffs
and
Petrofood.
"ertilizers. Coal and eum
and
coke.
benzine.
End of—
1914..
1915..
1916..
1917..
1918..
1919..
115
149
193
260
324
329
130
150
198
292
277
281
108
150
195
231
2S4
277
1920.
April
May
June
July
August
September...
October
November...
December...
299
293
300
337
317
360
353
372
352
301
317
324
376
388
392
390
389
385
292
306
328
341
341
343
343
340
1050
1050
1190
1190
1067
647
1921.
January
February
March
April
307
294
307
283
370
324
315
304
317
292
287
273
512
358
289
317
Iron.
Building
Metals. materials. Textiles.
151
224
355
1161
514
767
104
132
170
231
217
162
115
158
435
720
573
442
128
289
401
503
503
187
107
131
213
326
359
871
196
225
257
274
328
407
603
621
696
724
703
682
581
538
482
232
229
232
237
240
240
232
213
200
384
364
357
313
394
340
328
295
165
167
169
166
Hides
and
lea i her.
Pulp
wood.
Paper.
105
121
178
264
302
356
158
193
251
296
286
284
103
124
171
217
283
277
101
137
190
263
313
322
386
410
429
455
468
470
460
442
416
396
400
413
418
418
431
412
402
279
274
274
269
271
271
271
259
255
295
295
323
413
444
446
446
383
321
365
425
425
453
453
482
482
482
472
378
362
339
329
374
352
350
329
217
212
203
199
321
289
289
472
472
472
413
GROUP INDEX NUMBERS—AUSTRALIAN COMMONWEALTH, BUREAU OF CENSUS AND STATISTICS.
[July, 1914=100.]
Date.
July, 1914
1915
1916
1917
1918
1919
1920
April
May
June
July
August
September
October
November
December
January
February
March
April
Metals and
coal.
Textiles,
leather,
etc.
Agricultural
products.
Dairy
products.
Groceries
and
tobacco.
100
117
154
213
220
193
209
100
93
131
207
232
217
243
100
202
113
110
135
186
229
100
127
124
116
121
137
184
100
110
127
131
138
147
186
100
150
155
155
147
145
201
100
116
136
194
245
261
295
100
149
172
243
315
282
277
205
214
214
211
209
211
222
222
216
277
265
260
252
251
222
220
180
156
234
252
261
244
238
231
208
206
193
169
177
187
188
189
209
214
212
210
192
197
195
193
193
196
196
195
198
160
170
208
261
284
273
226
211
193
298
307
307
307
312
295
289
281
271
280
297
297
283
282
276
276
255
252
215
214
203
202
145
132
107
114
197
192
176
164
208
206
207
178
197
197
198
19(i
191
184
178
144
279
303
303
284
244
242
234
231
Meat.
Building
materials. Chemicals.
1920.
1921.
727
FEDERAL, RESERVE BULLETIN.
JUNE, 1921.
GROUP INDEX NUMBERS—CANADA, DEPARTMENT OF LABOR, i
[1913=.1OO.]
Grains
and
fodder.
Date.
1913
1914
1915
1916
1917
1918
1919
1920
Fruits
Animals Dairy
and
and
products.
vegemeats.
tables.
Other
foods.
Hides,
Textiles. leather,
etc.
Metals.
Imple- Building Fuel and
ments. materials,
lumber.' lighting.
100
114
136
142
206
231
227
263
100
107
104
121
161
197
199
198
100
100
105
119
149
168
192
204
100
99
93
130
233
214
206
261
100
104
121
136
180
213
222
258
100
102
114
148
201
273
285
303
100
105
110
143
168
169
213
191
100
96
128
167
217
229
173
203
100
101
106
128
174
213
228
245
April
May
June
July
August
September
October
November
December
291
301
302
292
271
254
229
201
190
200
207
211
211
204
202
194
184
179
196
189
183
194
198
202
207
209
221
316
358
338
295
216
190
177
203
189
264
275
274
283
277
261
249
236
223
328
323
314
305
300
298
292
273
251
239
210
182
178
173
161
156
153
141
214
213
207
209
209
207
203
195
178
1921.
January
February
March..
April
May
186
171
168
154
150
175
171
171
169
158
216
185
174
161
126
184
163
175
162
162
212
205
203
189
1S9
228
204
198
191
131
126
118
115
114
174
167
158
145
147
.
. . ..
100
100
97
100
118
147
171
268
100
94
92
113
163
188
201
255
100
106
160
222
236
250
205
204
237
237
238
242
243
259
259
259
259
268
245
294
294
282
285
273
265
265
252
257
279
294
298
296
295
270
269
201
203
206
218
218
217
211
205
"201
257
257
243
241
235
248
239
231
229
224
247
234
233
226
216
195
188
181
180
178
1920.
187
Drugs
and
chemicals.
i Unimportant groups omitted.
GROUP INDEX NUMBERS—CALCUTTA, INDIA, DEPARTMENT OF STATISTICS.
[End of July, 1914=100.]
Jute
Build- ManuOils, Raw Oil
Hides Cotton
Raw manu- Other
ing
facTea. Sugar
tex- mus- jute.
and manumate- tured Metals. skins.
fac- cotton. facseeds.
rials. articles.
tures. tiles. tard.
tures.
Date.
End of July, 1914...
1920.
Average for the year.
April
May
June
July
August
September
October
November
December
- ...
. ..
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
138
114
128
131
139
142
158
154
161
161
231
201
215
233
235
235
237
282
246
229
238
219
248
244
249
257
245
245
243
242
147
209
160
116
100
99
105
96
89
90
354
357
365
364
364
360
347
343
341
333
153
158
135
144
132
139
154
142
133
116
149
170
142
147
151
163
163
136
118
107
162
161
164
164
168
168
164
164
164
156
128
116
123
119
119
115
115
132
118
124
104
119
120
83
89
91
105
104
90
83
173
163
169
171
• 169
167
179
184
163
152
78
90
90
73
74
72
65
64
62
69
407
377
511
482
503
477
456
392
348
273
166
159
150
149
159
160
170
169
168
149
154
156
157
156
151
154
154
155
150
139
184
185
183
180
188
185
186
178
173
160
158
147
147
238
226
242
247
243
255
81
80
97
324
306
311
107
104
119
104
101
97
149
149
123
116
97
110
85
80
85
130
124
131
77
70
76
314
352
359
135
119
147
139
129
141
139
148
150
1921.
January
February
March
. .
Pulses. Cereals. Other
foods.
COMPARATIVE RETAIL PRICES IN PRINCIPAL COUNTRIES.
In the following table are presented statistics
showing the trend of retail prices and the cost
of living in the United States and important
European countries.
Three of these index
numbers—those for the United Kingdom,
Paris, and Sweden—are constructed on the
basis of prices in July, 1914 = 100. In the
case of the United States, the original base,
that of the year 1913, has been shifted to the
July, 1914, base. The German index uses the
year ending July, 1914 as a base.
The American index number, constructed by
the Bureau of Labor Statistics, was based upon
the retail prices of 22 articles of food, weighted
according to family consumption, until January,
1921, when it was increased to 43 articles reported
by dealers in 51 important cities. The method
of weighting continues the same, although the
actual "weights" applied have been changed.
The British index number of the cost of living
constructed by the Ministry of Labor consists
of the retail prices not only of foodstuffs but of
other articles as well. Ketail clothing prices,
rents, and the cost of fuel, lighting, ana miscellaneous household items are also taken into
consideration. The index number is weighted
according to the importance of the items in the
budgets of working-class families.
728
FEDERAL RESERVE BULLETIN.
The retail price index for Paris, compiled by
the French General Statistical Office, consists
of retail prices of 13 different commodities,
weighted according to the average annual consumption of a working man's family of four
persons. Eleven of the commodities included
in this index are foods, and the other two are
kerosene and alcohol.
The Swedish index number consists of the
retail prices of foodstuffs, fuel, and lighting
and is based upon the prices of 51 articles in
44 towns (in 1920, 50 articles in 49 towns),
weighted according to the budget of a working
man's family which before the war had a yearly
income of 2,000 kronor.
The German index expresses upon a percentage basis figures compiled by Dr. R. R.
Kuczynski of the Statistical Office at BerlinSchoneberg. Dr. Kuczynski bases his calculations upon the cost of living per week of a
family of four in Greater Berlin.
JUNE, 1921.
RETAIL PRICES INTHE UNITED STATES , PARIS, AND SWEDEN;
COST OP LIVING IN UNITED KINGDOM AND BERLIN.
[July, 1914-100.J
United United
Paris,
States,
Kingretail dom, cost retail 1
prices.1 of living. 2 prices.
Sweden,
retail
prices.
Berlin,
cost of
living. 8
182
199
216
249
260
371
321
298
1,080
April
May
Juiie
July
August
September..
October
November..
December..
207
211
215
215
203
199
194
189
175
232
241
250
252
255
261
264
276
358
378
369
373
373
407
420
426
424
297
294
294
297
308
307
306
303
294
1,302
1,267
1,056
1,125
1,069
1,038
1,104
1,097
1,135
1921
January
February
March
April
Mav
169
155
153
149
142
265
251
241
233
228
410
382
358
328
317
283
262
253
248
237
1,111
1,087
1,035
976
1919.
1920.
1920
1
Average for the month.
2 Beginning of month,
s August, 1913-July, 1914=100.
FOREIGN TRADE—UNITED KINGDOM, FRANCE, ITALY, SWEDEN, AND JAPAN.
In the following table are presented figures
showing the monthly value of the foreign trade
of a group of important European countries
and Japan. Similar statistics for Germany are
not available. Currencies have not been converted to a common unit, nor are methods of valuation the same in all countries. In England,
imports are given current c. i. f. values in England; exports and reexports, current f. o. b. values. The same method is followed in Japan and
Sweden. In France and Italy, on the other
hand, the value of foreign trade is estimated not
in terms of current prices but in terms of those
of some earlier date, usually the preceding year.
None of the figures presented below include
the import or export of gold and silver. In the
case of England and France, group figures are
given as well as total values, while in the case
of the other countries, total values only are
presented. This does not mean that group
figures are not obtainable, merely that they are
either delayed in publication or appear not to
be of such general interest as the French and
English material.
Japanese figures for recent months are received by cable and subject to revision.
FOREIGN TRADE OF UNITED KINGDOM.
[In thousands of pounds sterling.]
1913 monthly average.
1919 monthly average.
1920 monthly aver age.
1920.
April
May
June
July
August
September
October
November
December
1921.
January..
February.
March
April
May
Imports.
RawArticles MiscellaFood, materials
and I wholly or neous,
drink,
mainly
including
articles
and
manuparcel
tobacco. mainly factured.
post.
unmanufactured.
16,134
259
23,485
50,565
24,663
358
59,292
37,902
254
49,158
47,750
50,888
52,908
Exports.
Total.
Raw
Food, materials
and
drink,
articles
and
mainly
tobacco. unmanufactured.
Articles
wholly or
mainly
manufactured.
Miscellaneous,
including
parcel
post.
Total.
Reexports.
64,061
135,513
161,395
2,716
2,814
4,241
5,825
9,274
12,138
34,281
53,457
93,394
1,008
1,528
43,770
66,553
111, 297
9,131
13,729
18,701
71,587
60,509
57,919
51,899
51,268
44,557
44,299
46,560
48,613
38,050
40,580
44,681
41,923
40,016
40,573
36,267
35,955
34,553
131
252
325
450
185
293
156
246
241
167,154
166,334
170,491
163,842
153,255
152,692
149,889
144,260
142,785
3,959
4,020
4,313
4,515
3,503
4,311
4,678
4,723
3,842
12,194
13,211
11,447
12,551
10,467
9,515
9,632
9,399
12,277
88,689
100,727
99,081
118,954
99,645
102,216
95,701
103,694
78,819
1,410
1,361
1,512
1,432
1,288
1,415
2,285
1,548
1,694
106,252
119,319
116,352
137,452
114,903
117,456
112,295
119,365
96,631
20,407
20,260
20,124
17,848
13,368
13,351
16,134
13,115
12,699
37,005
25,504
17,739
16,547
30,467
23,394
24.930
20,374
420
326
184
167
117,051
96,974
93,742
89,996
3,852
3,075
2,897
3,729
7,668
5,881
5,832
2,936
79,746
58,177
56,969
52,019
1,491
1,089
1,111
1,184
92,756
68,222
66,809
59,868
143,080
9,955
8,004
8,888
8,524
1 7,230
'86,300
1 Subject to revision.
729
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
FOREIGN TRADE OF FRANCE. 1
[In thousands of francs.]
Imports.
August *...
September.
October
November.
December..
January
February
March
April
May
Manufactured
articles.
Raw
materials.
Manufactured
articles.
151,465
892,040
718,179
412,144
1,229,435
1,400,046
138,169
861,797
832,187
701,778
2,983,272
2,950,413
69,908
99,201
184,277
154,841
203,691
397,677
301,420
615,630
1,187,742
47,182
71,444
99,867
573,351
989,966
1,869,563
723,749
608,822
667,709
549,834
672,861
1,171,091
1,294,160
1,243,294
1,389,928
1,548,681
905,613
724,894
684,442
732,416
726,715
2,800,453
2,627,876
2,595,445
2,672,178
2,948,257
210,888
229,892
262,838
200,388
218,626
440,482
446,131
337,464
405,858
366,981
1,631,883
1,363,469
1,597,808
1,136,356
929,222
116,255
112,081
134,472
140,996
146,067
2,399,508
2,151,573
2,332,552
1,883,598
1,660,896
346,703
386,169
455,545
390,345
1,101,267
803,231
786,352
887,151
534,498
424,531
501,011
501,593
1,982,468
1,613,931
1,742,908
1,779,089
5 1 ; 565,504
188,546
172,992
162,901
176,333
436,069
478,561
379,281
468,453
1,142,398
1,162,817
1,035,826
1,179,683
115,605
85,074
108,418
107,799
1,882,618
1,899,444
1,686,426
1,932,268
6
1,648,644
Food.
1913, monthly average »
1919, monthly average 3»
1920, monthly average
Exports.
Total.
Raw
materials.
Food.
Parcel
post.
Total.
1920.
1921.
1
2
3
4
Not including gold, silver, or the reexport trade.
Calculated in 1913 value units.
Calculated in 1919 value units.
August, 1920, through April, 1921, figures calculated in 1919 value units. French foreign trade figures are originally recorded in quantity units
only, and the value of the trade is calculated by applying official value units to the quantities imported and exported. Normally the monthly
statements of trade appear computed at the rates of the year previous, and only at the end of the year is the trade evaluated at the prices prevailing
during that year. Because of the disturbed price conditions in France last year, however, it was not until July that the 1919 price units were decided
upon and applied.
& Subject to revision.
FOREIGN TRADE OF ITALY, SWEDEN, AND JAPAN.
Italy.
(In millions
of
lire.1)
Sweden.
(In millions of
kronor.)
Japan.
(In millions of
yen.)
Imports. Exports. Imports. Exports. Imports. Exports.
1913, monthly average.
1919, monthly average.
1920, monthly average.
February.
March
April
May
June
July.
August
September..
October.
November.,
December..
304
1,385
1,322
210
506
650
71
211
281
131
191
61
181
195
53
175
162
1,141
1,431
1,363
1,401
2,076
1,040
1,249
1,202
1,126
1,240
1,591
616
683
679
662
752
521
532
570
707
731
853
282
301
267
314
283
331
308
325
299
228
197
106
151
164
227
224
268
230
233
218
177
171
271
329
297
296
220
157
123
118
108
108
105
174
194
217
193
184
154
175
154
134
105
87
105
119
137
2 139
2 94
2 115
1920.
January..
February.
March
April
122
116 I
99
2
0 Allies based on 1919 pricey.
2
Provisional.
2
75
730
FEDERAL, RESERVE BULLETIN.
JUNE, 1921.
DISCOUNT AND OPEN-MARKET OPERATIONS AND CLASSIFIED HOLDINGS OF THE
FEDERAL RESERVE BANKS.
DISCOUNTS.
Discount operations of the Federal Reserve
Banks during March and April, 1921 and 1920,
are shown in summary form for the entire
system in the table below. Detailed figures
for each Federal Reserve Bank for the most
recent month are given on pages 732 to 733.
VOLUME
OF DISCOUNT
OPERATIONS.
[In thousands of dollars.]
1921
Total
1920
April.
March.
April.
March.
4,912,652
7,368,26S
6,229,741
6,970,331
Secured by Government
3,265,617 3,549,797 4,771,072 5, 298,884
obligations
Otherwise secured and un1,647,035 3,818,471 1,458,669 1,671,447
secured—Total
Commercial paper, n.
1,556,368 3,709,669 1,415,201 1,613,530
e. s
59,129
50,803
Agricultural paper
26,451
21,600
Live-stock paper
Trade acceptances15,296
23,383
10,860
11,709
Total
222
2,215
45
89
Foreign
15,074
21,168
10,815
11,620
Domestic
Bankers' acceptances7,404
11,513
34,534
Total
28,172
4,982
Foreign
6,704
2,172
Domestic
4,809
250
Dollar exchange...
Average maturity (in
days)
15.66
12.38
13.77
15.08
Average rate (365-day
5.64
6.32
6.43
5.67
basis), per cent
Discount operations for the month of April
show a very; marked decrease in volume as
compared with March, the total for March
being $7,368,000,000 and for April $4,913,000,000, a decrease of $2,455,000,000, or about
33 per cent. April figures were smaller than
March figures in 1920 as well, but the decrease
at that time amounted to only about 11 per
cent. The following table shows the volume
of discounts reduced to a daily basis according
to the method explained in the March BULLETIN, page 350:
VOLUME OF DISCOUNTS REDUCED TO DAILY BASIS.
Federal Reserve
Bank.
Volume of
discounts
(in millions).
April, i March.
All banks .
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco...
$4,913 1 $7,368
367
2.470
360
253
292
151
374
135
65
91
65
290
732
4,272
399
279
299
164
519
154
66
111
74
299
Average
maturity
(in days).
Volume on
daily basis
(in millions).
April.
March.
April.
March.
15.66
12.38
$2,565
$2,943
8.78
9.59
15.48
20.72
13.93
26.55
35.07
27.44
43.10
34.90
36.05
20.74
8.86
6.41
12.56
14.74
12.89
26.50
41.13
24.33
36.55
32.86
32.86
21.55
107
789
186
175
336
133
437
123
94
106
78
201
209
883
162
133
124
140
689
121
78
118
78
208
While the total volume of discounts was 33
per cent less in April than in March, the average
maturity for the most recent month was 15.66
days compared with 12.38 days the month
before, an increase of over 26 per cent. Consequently, the volume of discounts when reduced to a daily basis does not show a reduction corresponding to that shown for total
discount operations. The average daily volume of discounts declined from $2,943,000,000
in March to $2,565,000,000 in April, a decrease of 13 per cent, compared with the abovementioned decrease of 33 per cent in the total
volume. Longer average maturities are shown
for all the Federal Reserve Banks, with the
exception of those at Boston, Chicago, and
San Francisco, but the largest increases are
noted for the New York, Philadelphia and
Cleveland Reserve Banks. For the New York
bank, the average maturity for March was
6.41 days and for April 9.59 days. As a
consequence of this increase of nearly 50 per
cent in maturity, the reduction by 42 per cent
in the total volume of discounts for that bank
corresponds to a reduction of average daily
volume by less than 11 per cent. Longer
average maturities for April than for March
appear to be an annual occurrence, although
this year's increase is greater than that observed in previous years. The reason for this
seasonal tendency may be that many member
banks during this part of the year are called
upon to supply funds for agricultural purposes
and that, when they apply for accommodation7
to the Federal Reserve Banks, the customers
paper offered is likely to have a longer maturity
than is the case earlier in the year. This year,
the seasonal tendency appears to be accentuated by the large volume of liquidation of
short-term commercial and industrial paper in
the New York district.
A noteworthy feature in the reduction of
the volume of operations is that discounted
paper secured by Government obligations
declined only from $3,550,000,000 to $3,266,000,000, while other discounts declined from
$3,818,000,000 to $1,647,000,000, the decline
in commercial paper, not otherwise specified,
accounting for most of the decrease. The
volume of this class of paper discounted in
March was $3,710,000,000 and in April $1,556,000,000, a decrease of $2,154,000,000, or 58
per cent. For the New York bank alone, the
volume of this class of paper discounted
declined from $2,702,000,000 to $870,000,000,
a decrease of $1,832,000,000, or of 68 per cent.
This decrease in the New York bank consti-
731
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
tuted over 85 per cent of the entire decrease
in the volume of discounts of this class of
paper. The volume of agricultural paper
discounted during the month of April was
$51,000,000, compared with $59,000,000 the
month before, the decrease being about 14
per cent, compared with 58 per cent shown
for commercial paper proper. The volume of
live-stock paper discounted in April was
$22,000,000, compared with $26,000,000 in
March; the volume of trade acceptances
$11,000,000, as against $12,000,000, and the
volume of discounted bankers' acceptances
$7,000,000, as against $12,000,000.
Only a slight change is noted in the average
rate of discount, which was 6.32 per cent in
April, as compared with 6.43 per cent in March
of this year, and 5.67 per cent in April, 1920.
Following is a summary of holdings of discounted bills at the end of April and of March,
1921 and 1920.
HOLDINGS
OF DISCOUNTED
Federal
Reserve
Bank.
All banks.
Boston
New York....
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
Member banks
in district.
Apr. 30. Mar. 31.
9,739
436
790
700
878
614
488
1,431
579
1,011
1,093
860
859
1921
April.
March.
9,715
5,559
5,332
57.1
54.9
436
788
701
875
612
484
1,425
578
1,011
1,094
855
856
241
351
369
308
373
340
1,027
315
608
605
545
477
257
349
330
261
347
355
922
306
589
585
570
461
55.3
44.4
52.7
35.1
60.7
69.7
71.8
54.4
60.1
55.4
63.4
55.5
58.9
44.3
47.1
29.8
56.7
73.3
64.7
52.9
58.3
53.5
66.7
53.9
ACCEPTANCES.
A summary of the open-market operations of
Federal Reserve Banks in April and March,
1921 and 1920, is shown in the following table.
Detailed statistics for each Federal Reserve
Bank are shown on page 733.
VOLUME OF O P E N - M A R K E T PURCHASES OP ACCEPTANCES.
1920
[In thousands of dollars.]
1921
Apr. 30. Mar. 31. Apr. 30. Mar. 26.
2,076,569 2,233,104 2,535,071 2,449,230
Total
Secured by United States Gov937,652 970,9611,465,320 1,441,015
ernment obligations
Otherwise secured and unse1,138,9171,262,1431.,069,7511,008,215
cured—Total
Commercial and industrial
881,870 1., 010,891 891,181 861,848
paper, n. e. s
Agricultural paper
, 149,223 140,987 44,389 29,321
Live-stock paper
81,187
81,693 61,993 45,344
16,451
15,520 23,937 20,813
Trade acceptances—Total
117
256
Foreign trade
16,334
15,264
Domestic trade
Bankers' acceptances—Total. 10,186 13,052 48,251 50, S
7,665
8,787
Foreign trade
2,471
Domestic trade
Total.
Bankers'acceptances—Total
I n the domestic trade
I n the foreign trade
Dollar exchange
Trade acceptances—Total
In the domestic trade
In the foreign trade
Average maturity (in days)
Average rate (365-day basis), per
cent
1920
April.
March.
April.
March.
123,511
149,255
247,594
303.360
121,412
28,335 31,362
75, 560 100,598
17,517 16,738
2,099
557
2,099
26.60
557
33.99
5.94
6.01
240,704 294,301
56,189 57,350
182,762 236,951
1,753
4,158
6,890
4,901
388
812
6,502
4,089
51.59
49.33
5.82
5.80
50
BANKS ACCOMMODATED.
During the month of April 24 banks were added
to the membership of the system, the total number of banks increasing from 9,715 to 9,739.
The number of banks accommodated in April
was 5,559 and in March 5,332, so that the percentage of banks accommodated increased from
54.9 to 57.1 per cent. Increases in the proportion of banks accommodated are noted in the
Philadelphia, Cleveland, Richmond, Chicago,
St. Louis, Minneapolis, Kansas City, and San
Francisco districts, while the proportion in the
New York district shows but a nominal change,
and the proportions in the Boston, Atlanta, and
Dallas districts are smaller than the month
before.
March.
April.
Percentage
accommodated.
BILLS.
[In thousands of dollars.]
Dollar exchange
Member banks
accommodated.
Open-market purchases of acceptances in
April were $124,000,000, compared with $149,000,000 in March, the largest decreases being
shown for bankers' acceptances, which aggregated $121,000,000 in April, compared with
$149,000,000 the month before. Bankers' acceptances in the domestic trade declined by
about $3,000,000, and dollar exchange bills
purchased increased by about $1,000,000.
The decrease in the total of bankers' acceptances purchased is largely due to a reduced
volume of acceptances in the foreign trade,
which aggregated $76,000,000 in April as compared With $101,000,000 in March.
Following is a table showing the volume of
open-market purchases in April and March reduced to a daily basis:
732
VOLUME
FEDERAL RESERVE BULLETIN.
OP OPEN-MARKET PURCHASES
DAILY BASIS.
April.
All banks
Boston
New York
PJhila delphia
Cleveland.
Richmond
Atlanta
Chicago..
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco.
Volume on
daily basis
(in millions).
March. April. March. April. M a r c h .
124
149
26.60
33.99
110
164
13
72
10
8
1
1
12
2
24
78
9
11
3
14.60
19.61
46.64
30.52
62.36
66.57
53.52
15.05
19.57
29.89
40.13
44.65
39.78
70.05
57.27
21.27
39.29
6
47
16
8
2
2
22
1
15
75
12
16
.
(i)
month before, and the average maturity was
19.61 days, as against 29.89 days. As a consequence, the average daily volume of purchases for that bank shows a decrease from
$75,000,000 in March to $47,000,000 in April.
Following is a summary of the holdings of
purchased and discounted acceptances at the
end of March and of April, 1921:
REDUCED TO
Average
maturity
(in days).
Volume of
purchases
(in millions).
Federal Reserve
Bank.
0)
15
2
0)
0 )
7
"86.20"
26.05
37.10
82.90
50.60
JUNE, 1921.
HOLDINGS OF PURCHASED AND DISCOUNTED ACCEPTANCES.
[In thousands of dollars.]
\
28
End of—
1
April.
6
March.
12
All classes
1 Less t h a n $500,000.
It will be noted that the average maturity
of purchased bills in April was 26.6 days, compared with 33.99 days in March. This reduction of 22 per cent in maturity, together with
a reduction of 17 per cent in total volume of
purchases, has resulted in a decline of 33 percent in the volume of purchases reduced to a
daily basis. For the New York Reserve Bank
the volume of paper purchased in April was
$72,000,000, compared with $78,000,000 the
Purchased in open market
Discounted for member banks
Total, distributed by classes of acreptances:
Bankers' acceptances—Total
Foreign
Domestic
Dollar exchange
Trade acceptances—Total
Foreign
Domestic
Bankers' acceptances, distributed by classes of accepting institutions:
Member banksNational
Nonnational
Nonmember banks and banking corporations.
Private bankers
Branches and agencies of foreign banks
136,402
147,913
109, 763
26, 639
119,341
28,572
119,
84,
21
13,
17,
132,106
93, 782
28.224
10,100
15,807
543
15,2C4
330
378
710
242
072
738
16,334
37,
31,
21,
14.
15'
635
Ofi)
1 \2
•01
372
46,3^4
28, 745
23,736
16,015
17,306
VOLUME OF OPERATIONS.
VOLUME OF DISCOUNT AND OPEN-MARKET OPERATIONS DURING APRIL, 1921.
United States securities
purchased.
Federal Reserve Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
*.
San Francisco
Total:
April, 1921
April, 1920
4 months ending Apr. 30, 1921
4 months ending Apr. 30, 1920
Bills discounted Bills bought i n
for member
open market.
banks.
$367, 020,034
2,469, 906, 248
359, 860,513
252, 871,628
292, 130, 222
150, 877,136
374, 274.131
134, 975^ 986
65, 171, 993
90; 747,721
64. 551,083
290i 265,152
4,912. 651, 847
6,229, 740, 505
28,659,530,775
25,958,782,091
Bonds
and
Victory
notes.
$13,278,272
71,580,181
9, 859; 528
8,046, 771
1, 227,900
1,117,213 $520, 000
11,423, 244
1, 813,067
25, 000
3,916
5,135,679
123,510,771 520,000
247, 594. 383
900
564,490' 578 531, 800
1,153,714,069 245,350
Certificates of
indebtedness.
$3,737,500
26, 751, 000
10,160. 000
235,500
2,000,000
2,091,500
1,078,500
187,500
405,000
1,319,000
47,965,500
997,143,000
789,504,057
3,440,202,000
Total.
April, 1921.
April, 1920.
$384, 035,806
2,568', 237,429
379; 880,041
261, 153, 899
295, 358,122
152, 514, 349
387, 788, 875
137, 867,553
65. 359,493
91, 177, 721
64, 554,999
719,831
$458,459,221
4,013,611,967
596,705,179
333,465, 870
327,562,268
160, 846j 194
553.986,741
277,722,527
110,890,565
145,170,283
117,952,001
378,105,972
5,084,648,118
7,474,478,788
" 30," 014," 057,, 210
'36,*552,'943,'5i6
733
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
VOLUME OF BILLS DISCOUNTED DURING APRIL, 1921, BY CLASSES OF PAPER; ALSO AVERAGE RATES AND MATURITIES.
I
Customers'
paper
secured by
Government
obligations.
Federal Reserve Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Member banks' collateral
notes.
Secured by
Government
obligations.
Otherwise
secured.
$8,193,205
$230, 149, 500
70, 397,761 1,524, 450, 544
29,472,055
208, 252,462
6,291,686
174, 069, 095
2, 200, 503
245, 926,612
5,147,193
93, 153, 550
11,085,273
214, 380, 591
3, 299, 945
84, 683,129
719, 767
28, 861,485
3,155,173
62, 192, 007
745, 201
41, 233, 278
4,175, 490
215, 381, 072
Total:
April, 1921..
March, 1921.
April, 1920..
March, 1920.
144,883,232
120, 347, 662
212, 792, 704
189, 512, 507
Boston
New York
Philadelphia. ..
Cleveland
Richmond
Atlanta
Chicago
.
St Louis
Minneapolis
Kansas City
Dallas
San Francisco
Domestic.
500
S89,918
1,423,604
131,153
2, 041,326
1,000,120
607,477
1,756, 439
437,029
211,481
696,087
373,686
2,066,905
44, 373
88,905
10, 815, 225
11,620,251
$43, 873
Total:
April, 1921 .
March, 1921
April 1920
March, 1920
.
$128, 400, 215
870, 354,132
123,670, 579
68,947, 743
36, 739,920
45, 402,672
130, 329, 347
41,056,449 i
18,000,934 '
15, 208,216
10, 379, 835
46,136,316
$198, 404
424,186
299,264
435,131
5,212,085
4, 535,205
14, 862,132
3,915,669
6,662', 608
2, 253,904
4, 936, 960
7,087,959
23,741,690 I 1, 532,626,358
50, 803, 505
29,730,819 I 3,679,937, 806
59,129, 386
8,935,916 I
1,406,264,752
11,451,320
1,602,079, 269
Dollar
Domestic. exchange.
Foreign.
$2, 706,021
$50,000
$50,000
1, 689,153
863, 354
200, 000
240,000
124,189
200,000
191, 500
553, 884
7,465
197,980
305,901
4,982, 343
6, 703, 824
2,172,104
4, 808, 525
25, 666
250,000
28,172,156
34, 533,784
15, 295,488
23, 382,954
. . .
2,814,200
10,445,710 )
Agricultural
paper
Bankers' acceptances.
Federal Reserve Bank.
Foreign.
$50,000
35,000
224,000
932, 500
690, 000
1. 248, 250
' 497, 225
8, 804, 805
3,120,733, 325
3, 429, 449,7S2
4, 558,279, 489
5,109,371,143
Trade acceptances.
Commercial
paper
n. e. s.
Total, all
classes.
$367,020,034
2,469,906,248
359, 860, 513
252, 871,628
292,130,222
150, 877,136
374,274,131
134,975,986
65,171,993
90,747,721
64, 551,083
290,265,152
4,912,651, 847
7,368,268,054
6, 229, 740, 505
6,970, 330,977
Live-stocpaper.
$8,792
110,160
74,609
901,039
420, 599
507,656
3,779, 281
7,242,334
4,037,923
4, 487, 319
21,599,692
26,451, 094
Average
Average
rate
maturity. (335-day
basis)
Days.
rer cent.
8.78
6.21
6.45
9.59
5.55
15.48
20.72
6.00
13.93
6.00
26.55
6.36
35.07
6. 70
27.44
6. 03
6.81
43.10
34.90
6.44
38.05
6.73
20.74
6.00
15.66
12.38
15.08
13.77
6.32
6.43
5.67
5.64
VOLUME OF BANKERS' AND TRADE ACCEPTANCES PURCHASED DURING APRIL, 1921, BY CLASSES OF PAPER; ALSO AVERAGE
RATES AND MATURITIES.
Trade acceptances.
Bankers' acceptances.
Average
Federal Reserve Bank.
Dollar
exchange
bills.
Foreign.
Domestic.
Richmond . .
Atlanta
Chicago
St Louis
$8,184,393
42,634,880
6,675,864
5,251,845
330,000
343,7i3
7,203,362
1,061,969
$4,128,778
S985,101
12,611,945 14,308,280
1,883,664 1,300,000
2,676,926
118,000
897,900
773,500
3,684,882
535,000
616,098
135,000
Dallas
San Francisco
3,874,004
Boston
New York .
CTIGVPI&TKI
Total:
April, 1921
March, 1921
April, 1920
March, 1920
....
75,560,030
100,598,340
182,762,225
236,951,034
Total.
$13,278,272
69,555,105 $2,025,070
9, 859,528
8,046,771
1,227,900
1 117 213
11 423 244
1,813,067
155,000
25 000
3,916
5,061,579
28,335,184 17,516,381
31,361,941 16,738,187
56,189,170 1,752,678
57,350,003 4,157,622
121,411,595
148,698,468
240,704,073
298,458,689
25 000
3,916
1,032,575
Foreign. Domestic.
Total.
$2; 025,076
Total bills Average
rate
purchased. maturity. (365-day
basis).
$13,278,272
71,580,181
9,859,528
8,046,771
1,227,900
1,117,213
11,423,244
1,813,067
Days.
Per cent.
14.60
5.84
19.61
5.91
46.64
5.84
30.52
5.94
62.36
6.08
66.57
7.10
53.52
5.93
15.05
6.06
74,100
25,000
3,916
5,135,679
86.20
26.05
37.10
7.10
6.08
6.02
2,099,176
2,099,176
556,855
553, 855
6,501,967 '$388,'343* 6,890,310
811,510 4, 900, 845
4,089,335
123,510,771
149,255,323
247,594,383
303,359,534
26.60
33.99
51.59
49.33
5.94
6.0L
5. 82
5.80
74,100
734
FEDERAL RESERVE BTJLLETIH.
JUNE, 1021.
HOLDINGS, BY CLASSES.
AVERAGE DAILY HOLDINGS OF EACH CLASS OF EARNING ASSETS, EARNINGS THEREON, AND ANNUAL RATES OF
EARNINGS, DURING APRIL, 1921.
Federal Reserve
Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Annual rate of earnings on—
Earnings o n -
Average daily holdings of-
All classes
of earning
assets.
All
Disclasses of counted
Discounted Purchased United
States
bills.
bills.
bills.
securities. earning
assets.
$145,245,732
742,018,166
183.183,155
187,062,190
130,474,121
134,834,800
440,476,480
97,578,750
81,383,700
116,599, 741
75,117,502
190,279,069
$116,669,663
638,327.614
140,125,226
143,902, 803
114,809,418
117, 425,208
387,686,884
81, 896,834
72,768,700
97, 274,041
64,137,387
164,957,964
$7,223,669 $21,•,352,400 $696,519 $624,744
42,951,430 60, 739,122 3,703,096 3,382,303
779,364 649,812
14,637,746 31,420,183
716,988
18,455,587 24, 703,800 850,239
593,218 560,297
13,627,483
2,037.220
795,514 16,614,078 642,168 609,608
9,993,529 42,796,067 2,251,211 2,126,972
439,271
407,722
1,236,083 14,445,833
8,615,000 415, 604 401,257
100,700 19, 225,000 528,374 494,040
361, 843 342,235
114,198 10,865,917
12,826,805 12,494,300
Purchased
bills.
All
United classes
Pur- United
DisStates of earn- counted
States
chased securisecuribills.
bills.
ing
ties. assets.
ties.
$35,076
208,520
71,088
91,290
10,165
4,640
49,686
6,133
$36,699
112,273
58, 464
41,961
22,756
27,920
74, 553
25,416
14,347
587 33,747
584 19,024
63,916 21,356
Per ct. Per ct. Perct. Per ct.
6.52
5.91
2.09
5.83
6.45
5.91
2.25
6.07
5.64
5.90
2.26
5.09
6.06
6.02
2.07
5.53
5.94
6.07
2.03
5.53
6.32
7.10
2.05
5.80
6.68
6.05
2.12
6.22
6.06
6.04
2.14
5.48
6.71
2 03
6.21
6.18
2.14
5.51
7.10
6.49
2.13
5.86
6.13
5.96
2.08
5.72
6.06
Total:
April, 1921
March, 1921
2,527, 253,406 2,139,981, 742 110,372,481 276,899,183 12,154,787 11,124, 586 541,685 48S, 516
2,735,784, 111 2,301,628,559.138,397,250 295,758,302 13,697,626 12,428,781 706,155 562,690
5.85
5.90
6.32
6.36
5.97
6.01
2.15
2.24
April, 1920
March, 1920
3,191,945,384 2,440,375,416419,745,831331,824,137 13,696,186 11,162,212 1,962,064 571,910
3,211,935,98012,386, 536,669.481,238,308:344,161,003 13,906,325 11,065,472 2,231,078 609,775
5.23
5.11
5.58
5.47
5.70
5.47
2.10
2.09
HOLDINGS OF DISCOUNTED BILLS, BY CLASSES.
[End of April figures. In thousands of dollars.]
Federal Reserve Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis...
Minneapolis
Kansas City
Dallas...
San Francisco
Total:
Apr.
Mar.
Apr.
Mar.
30,1921....
31, 1921
30, 1920
26, 1920..
Total.
Trade
Member banks' colCus* acceptances.
lateral notes.
tomers'
paper
Comsecured
mercial Agri- Livestock
by Gov- Secured by Other- paper cultural
ernment GovernDon. e. s. paper. paper. Forwise
seobliga- ment oblieign. mestic.
tions.
gations. cured.
104,369
613,263
148,202
142,174
109,599
115,590
364,596
81,237
71,681
95,759
64,387
165,712
14,330
101,982
35,004
7,744
4,700
9,924
19,741
5,397
993
4,221
1,167
5,903
30,325
272,553
74,853
49,273
31,938
42,357
101,422
30,504
11,667
28,456
8,783
44,415
35
112
335
283
635
209
3,486
5
1,439
5,598
2,076,569
2,233,104
2,535,071
2,449,230
211,106
204,569
351,845
359,106
726,546
766,392
1,113,475
1,081,909
12,137
15,789
4,130
6,248
59,349
228, 586
37,513
81,313
60,872
48,296
181,350
35,621
17,161
26,299
16,699
76,674
210
8
645
5
566
673
255
9,726
75
11,319 2,075
58,103
7,560
778
20,724 16,961
8,797 26,725
16,674 18,717
14,226 15,588
869, 733 149,223 81,187
995,102 140,987 81,693
887,051 44,389 61,993
855,600 29,321 45,344
117
147
1,765
226
2,423
1 953
1,078
3,263
490
358
1 223
854
2,554
117 16,334
256 15,264
23,937
20,813
Bankers' acceptances.
Foreign.
DoDollar
mestic. exchange.
6,509
1,173
247
134
208
82
25
324
270
7,665
8,787
50
50
653
7
33
54
367
2,471
4,183
48,251
50,889
50
82
V35
JUNE, 1921.
HOLDINGS OF BANKERS' AND TRADE ACCEPTANCES PURCHASED OR DISCOUNTED, BY CLASSES OF ACCEPTANCES.
[End of April figures. In thousands of dollars.]
Bankers' acceptances.
All classes.
Federal Reserve Bank.
Total.
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
7,950
65,184
11,976
16,025
3,686
2,493
10, 846
1,937
690
1.281
933
13,401
Total:
Apr. 30,1921
Mar.31,1921
Purchased in open market:
Apr. 30,1921
Mar.31,1921
Discounted for member banks:
Apr. 30,1921
Mar. 31,1921
136,402
147,913
I
Purchased
in open
market.
Discounted
for
member
banks.
7,803
55,687
11,750
13,221
1,733
1,157
7,501
769
7,803
62,994
11,750
13,602
1,733
1,415
7,583
1,447
332
58
79
10,534
4,360
44,021
10,199
10,654
586
437
5,941
357
324
25
21
7,453
2,548
8,518
1,276
2,254
1,147
978
1,317
25
25
10,092
147
9,497
226
2,804
1,953
1,336
3,345
1,168
690
1,256
908
3,309
109,763
119,341
26,639
28,572
119,330
132,106
84,378
93,782
21,710
28,224
109,142
119,054
76,712
84,995
10,188
13,052
7,666
8,787
109,763
119,341
26,639
28,572
Trade acceptances.
Total.
Foreign.
Domestic.
Dollar
exchange
bills.
895
10,455
275
694
Foreign.
Total.
147
2,190
226
2,423
1,953
1,078
3,263
mestic.
490
358
1,223
854
2,867
313
147
1,765
226
2,423
1,953
1,078
3,263
490
358
1,223
854
2,554
13,242
10;100
17,072
15,807
738
543
16,334
15,264
19,238
24,041
13,192
10,018
621
287
621
287
2,472
4,183
50
16,451
15,520
117
256
325
110
33
58
2,593
425
16,334
15,264
HOLDINGS OF BANKERS' ACCEPTANCES PURCHASED OR DISCOUNTED, BY CLASSES OF ACCEPTING INSTITUTIONS.
[End of April figures. In thousands of dollars.]
Member banks.
Federal Reserve Bank.
Total.
National.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total:
Apr. 30,1921
Mar. 31, 1921
Purchased in open market:
Apr.30,1921
Mar.31,1921
Discounted for member banks:
Apr.30,1921
Mar.31,1921
Nonnational.
7,803
62,994
11,750
13,602
1,733
1,415
7,583
1,447
332
58
79
10, 534
5,066
16, 301
4,166
3,046
1,703
442
3,224
534
76
58
58
2,961
2,277
17,181
2,722
2,457
30
973
3,655
768
56
119,330
132,106
37,635
46,304
109,142
119,054
10,188
13,052
Nonmember
banks and
banking
corporations.
Private
bankers.
Branches
and
agencies of
foreign
banks.
416
11, 550
2,337
2,745
44
9,436
960
2,106
557
45
200
125
22
100
3,312
12
1,418
9
1,902
31,060
28,745
21,162
23,736
14,101
16,015
15, 372
17,306
33,981
40,404
28,346
25,464
18,341
20,653
13,915
14, 559
16,655
3,654
5,900
2,689
3,281
2,851
3,083
15, 878
186
137
8,526
1,565
3,248
651
736
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
CONDITION OF FEDERAL RESERVE BANKS.
Discount operations of the Federal Reserve
Banks during the five weeks between April 22
and May 25, as measured by the amounts of
discounted bills held at the close of each report
week, show substantial reduction, the May 25
total of $1,870,300,000 being $243,600,000 below the total shown at the earlier date. Of
the total reduction for the period, $148,700,000
represents the curtailment of loans secured by
United States Government obligations, largely
paper secured by Liberty bonds and Victory
notes, and $94,900,000 the curtailment of loans
otherwise secured and unsecured, i. e., commercial loans proper. Accordingly, the share of
Government paper in the total discounts held
by the Reserve Banks shows a decline for the
period from over 44 to less than 43 per cent, as
against over 57 per cent about the end of
May of last year. Rate reductions adopted by
six Reserve Banks in April and during the
early part of May apparently as yet have had
but little effect in checking the liquidation
movement. As a matter of fact, loan liquidation of the Boston, New York, Atlanta, Chicago,
Minneapolis, and Dallas Reserve Banks for
the period under review totaled $212,800,000,
or 15.4 per cent, compared with $30,800,000,
or 4.2 per cent, shown for the other six banks
which made no recent rate changes. Inasmuch
as the effect of the new rates is to eliminate
to some extent the preferential rates on
Government paper, it is to be expected that
Federal Reserve Bank holdings of this class of
paper will continue to decline with the reduction in the total volume outstanding and
the gradual absorption of these securities by
the investing public. In this connection, it
may be noted 7that the substantial increase in
member banks holdings of Treasury certificates shown in the May 18 member bank
statement was followed but by a slight increase in the Federal Reserve Bank holdings
of paper secured by such certificates. This,
apparently for the reason that present Reserve
Bank rates on paper secured by certificates, in
most cases, are in excess of the coupon rates,
and therefore no longer act as an inducement
for discounting with the Reserve Banks. As
a matter of fact, the banks' May 25 holdings of
paper secured by certificates totaled only
$53,400,000, compared with $78,200,000 five
weeks earlier, and $47,000,000 on the previous
Wednesday, following the issuance of about
$256,000,000 of new loan certificates, an
amount largely in excess of the $200,000,000
or thereabouts of certificates redeemed on and
after May 16.
In the following exhibit there is given a
summary of the weekly changes in the principal
asset and liability items of the Federal Reserve
Banks for the five weeks under review:
MOVEMENT OF PRINCIPAL ASSETS AND LIABILITIES OF THE TWELVE FEDERAL RESERVE BANKS COMBINED.
[In millions of dollars.]
Apr. 22.
Reserves:
Total.
Gold
Bills discounted:
Total
Secured by United States Government obligations.
All other
Bills bought in open market
Certificates of indebetedness
Total earning assets
Government deposits
Members' reserve deposits
Total deposits
Federal Reserve notes in circulation
Federal Reserve Bank notes in circulation—net liability...
Reserve percentage
Distribution of discounted paper by maturities shows but little change. Fifteen-day paper
continues to form over 59 per cent of the total
discounts held; 60-day paper, the next largest
group, shows the greatest relative decline,
while holdings of 6-month agricultural and
live-stock paper show a gain of $22,400,000.
Apr. 27.
May 4.
May 11.
May 18.
May 25.
2,492. 8
2,298.1
2,504. 8
2,317.6
2, 519. 9
2,343.4
2,537. 8
2,363.6
2, 549.1
2,378.9
2,558.2
2,392.9
2,113. 9
942.7
1,171.2
104.5
246.7
2,063.7
920. 5
1,143.2
103.6
242.1
2,068.3
892.4
1,173.9
94.3
240.4
2,035.4
917.7
1,117.7
76.6
241.4
1,842.6
774.9
1,087.7
81.7
363.8
1,870. 3
794.0
1,076.3
87.1
280.1
2,490. 7
2,435.1
2,426.6
2,379.1
2,313.9
2,263.1
67.5
1,648.9
1,749. 4
2,856.7
159.6
54.1
35.9
1,656. 7
1,725. 9
2,830.1
156.2
55.0
23.4
1,671.4
1,729.2
2,828.6
153.9
55.3
13.8
1,688.0
1,733.4
2,804.9
149.9
55.9
15.6
1,665.5
1,716.6
2,767.4
147.8
56.8
17.3
1,655.6
1,705. 9
2,734. 8
144.8
57.6
A further decline from $104,500,000 to
$87,100,000 is shown in the holdings of acceptances purchased in open market, this decline
reflecting both the lessened supply of these bills
in consequence of the considerable slump in our
foreign trade, also the relatively high rates
charged by the Federal Keserve Banks.
JDNE, i92l.
737
FEDERAL EESERVE BULLETIN.
rLLIONS
DOLLARS
MOVEMENT OF PRINCIPAL ASSETS AND LIABILITIES
OF THE FEDERAL RESERVE BANKS
1920 -1921
p
I: U.S.SECURITIES.
4 : TOTAL DISCOUNTS.
2: PURCHASED ACCEPTANCES.
5: TOTAL EARNIN6 ASSETS.
3 : DISCOUNTS SECURED BY U.S. GOVERNMENT OBLIGATIONS.
HO
3500
3500
'"V
3000
7 con
V
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y
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2000
1500
2000
1500
V
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JAIf. FEB. MAR APR. MATJUNE JUDT AU6. SEPT. OCT. K07. DEC. JAN. FEB. MAR. APR. MATJUNE JUU AU6. SEPT. OCT. MOV DEC.
1920
1921
I: RESERVE RATIO.
2: DEPOSITS.
3500
3 .. CASH RESERVES.
4 : F.R.NOTE CIRCULATION.
3500
4
3000
3000
J002SD0
2500100
—
80 aooo
60
— -
1500
^_
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40 1000
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JAW. FEB. MAR APR. MAYJUKE JULY AU6. SEPT. OCT. NO/. DEC. JAN. FfB. MAK AFK. MAYjuwi: JULY AUt SEPT. OCJ-
1920
1921
uuv. PEC.
738
JUNE, 1921.
FEDERAL RESERVE BULLETIN.
Further reduction from $240,900,000 to
$233,400,000 in the total of "Pittman" certificates held with the United States Treasury to
secure Federal Reserve Bank note circulation,
is due to the redemption by the Government of
certificates, upon deposit with the Treasury
by the Boston, Philadelphia, Cleveland, Richmond, and Chicago banks of equivalent funds
to cover withdrawals from circulation of
Federal Reserve Bank notes. Changes in
other Treasury certificates represent partly
amounts of special certificates held by the Reserve Banks to cover overdrafts by the Government, partly also differences in the amounts of
loan and tax certificates held under repurchase
agreements. In consequence of the changes
shown, total earning assets of the Reserve
Banks show a continuous decline for the five
weeks of $227,600,000 and on May 25 stood at
$2,263,100,000, or about 33 per cent below the
peak figure reported on October 15 of last year.
Rediscounting operations are reported by
the Richmond, Minneapolis, and Dallas banks.
On May 25 the New York Reserve Bank held
under discount for the Richmond and Minneapolis banks bills totaling $25,300,000, compared with $10,000,000 of bills carried for the
Kichmond bank five weeks before, while Boston
and Cleveland show a combined total of
$4,600,000 of like accommodation extended to
the Dallas bank, compared with $7,400,000 at
the earlier date. Aggregate contingent liabilities of the Federal Reserve Banks on bills
purchased for foreign correspondents show but
a slight change, and at the close of the period
stood at $32,300,000.
Deposits, because of the declining amounts of
Government balances, show a reduction of
$43,400,000 for the period. The " float" carried
by the Reserve Banks, representing the difference between asset item " uncollected items''
and liability item " deferred availability items/ 7
shows a further decline for the five weeks of
about $11,500,000, the May 25 volume of
$85,200,000 being $61,300,000 less than the
amount shown on March 18, when the two
items were first disregarded in calculating
deposit liabilities and reserve percentages.
Federal Reserve note circulation continued
itsdeclinefrom$2,856,700,000to$2,734,800,000,
or at an average weekly rate of $24,400,000,
compared with $18,500,000 for the previous
four weeks. Between December 23, 1920, and
May 25 of the present year, the reduction in
Federal Reserve note circulation totaled
$670,100,000, or nearly 20 per cent, while since
May 28,1920, the decrease in circulation is about
12 per cent. Since April 22, there has also been
effected a reduction of $14,800,000 in Federal
Reserve Bank note circulation, the amount
outstanding at the close of the review period,
$144,800,000, being nearly 20 per cent below the
total shown about a year before.
The banks7 gold reserves, owing largely to
continued purchases of imported gold, show a
further gain for the five weeks of $94,800,000.
This gain is partially offset, however, by a loss
of $29,400,000 in other reserves, i. e., silver and
legals. Since the beginning of the year the
banks' gold holdings have increased by over
$330,000,000, and their total cash reserves by
$304,500,000. The banks7 reserve ratio, because of the increase in reserves and the simultaneous decreases in deposit and note liabilities,
shows a further steady advance during the fiveweek period from 54.1 to 57.6 per cent.
In the following table are shown comparative
figures of average daily cash reserves, deposits,
Federal Reserve note circulation, and reserve
percentages of the Federal Reserve Banks for
the months of May and April of the present
year and of the two preceding years:
CASH RESERVES, TOTAL DEPOSITS, FEDERAL RESERVE NOTE CIRCULATION, AND RESERVE PERCENTAGES FOR APRIL
AND MAY, 1921.
[Daily averages. Amounts in thousands of dollars.]
Total cash reserves.
Total deposits.
Federal Reserve notes
Reserve percentage.
in circulation.
Federal Reserve Bank.
May.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas.....
San Francisco
Total, 1921
1920
1919
1
April.
May.
April.
May.
April
May.
April.
263,364
787,033
184,850
283,322
78,731
99,826
384,961
102,906
43,122
78,459
38,586
196,480
257,249
778,936
192,534
286,271
82,173
90,542
337,832
102,009
48,367
73,171
41,448
194,547
111,178
664,977
103,408
141,743
56,563
46,332
244,021
65,512
43,452
74,449
46,098
119,690
112,720
671,799
106,546
143,834
58,054
48,436
245,052
67,133
46,050
76,644
48,681
124,619
255,820
725,618
232,357
272,842
130,975
158,279
463,511
109,129
63,440
85,766
52,284
237,358
257,916
762,884
235,260
283,200
139,854
155,6/5
474,999
113,397
66,748
91,155
57,512
232,045
71 8
56.6
55.1
68.3
42.0
48.8
54.4
58.9
40.3
49.0
39.2
55.0
69.4
54.3
56.3
67.0
41.5
44.4
46.9
56.5
42.9
43.6
39.0
54.5
2,541,640
2,078,822
2,246,087
2,485,079
2,084,077
2,224,948
1,717,423
1,987,323
1,944,547
1,749,568
1,998,732
1,878,879
2,787,379
3,089,737
2,534,112
2,870,645
3,071,754
2,547,535
56.4
*42.4
* 51.8
53.8
*43.0
1
fi2.0
Calculated on the basis of net deposits and Federal Reserve notes in circulation.
739
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON WEDNESDAYS, APR. 27 TO MAY 25, 1921.
RESOURCES.
[In thousands of dollars.]
Total.
Gold and gold certificates:
Apr.27
May 4
May 11
,
May 18
,
May 25
Gold settlement f u n d Federal Reserve Board:
Apr.27
May 4
,
May 11
May 18
May 25
Gold with Federal Reserve
Agents:
Apr.27
May 4
May 1 1 . . . .
...
May 18
. .
May 25
Gold redemption fund:
Apr.27
May 4
May 11
May 18
May 25
Total gold reserves:
Apr.27
May 4
May 11
May 18
May 25
Legal tender notes, silver,
etc.:
Apr.27
May 4
May 11
May 18
May25
Total reserves:
Apr.27
May 4
May 11
May 18
May 25
Bills discounted:1
Secured by U. S. Government obligations—
Apr.27
May 4
May 11
May 18
May 25
All other—
Apr.27
May 4
May 11
,
May 18
May 25
,
Bills bought
....
in open
market: 2
Apr.27
May 4
May 11
May 18
May 25
U. S. Government bonds:
Apr.27
May 4
May 11
May 18
May 25
U. S. Victory notes:
Apr.27
May 4
May 11
May 18
May 25
U. S. certificates of indebtedness:
One-year certificates
(Pittman Act)—
Apr.27
May 4
May 1 1 . . . .
May 18.
May 2 5 . . . . . . . . . . . .
Boston.
New
York.
Phila- Cleve- RichAtdelphia. land. mond. lanta.
347,946
364,244
377,610
325,391
279,261
7,704
7,499
7,560
7,660
7,749
261,554
280,197
298,382
244,853
197,228
2,801
2,849
1,896
1,913
1,843
6,384
5,989
5,485
5,802
5,869
3,231
2,954
2,654
2,691
2,624
488,219
482,200
450,584
454,105
474;952
55,466
44,508
44,314
34,700
38,085
72,083
64,768
25,374
41,013
65,109
46,144
51,862
54,573
43,119
51,907
73,561
66,070
62,977
69,188
83,904
20,925
28,497
23,372
23,831
22,110
17,146
17,339
18,134
14,930
10,865
1,317,860
1,326,087
1,374,138
1,458,619
1,505,229
170,221
175,435
168,540
183,271
177,759
297,965
297,514
297,074
361,578
411,284
123,983
123,921
126,020
120,941
112,314
194,810
195,474
194,536
195,109
194,599
42,094
38,149
43,323
38,023
34,981
163,544
170,827
161,221
140,791
133,505
22,463
26,252
31,716
16,812
22,242
36,000
36,000
36,000
36,000
36,000
9,485
8,426
12,030
10,581
7,576
2,317,569
2,343,358
2,363,553
2,378,906
2,392,947
255,854
253,694
252,130
242,443
245,835
667,602
678,479
656,830
683,444
709,621
182,413
187,058
194,519
176,554
173,640
187,194
176,540
174,220
170,228
165,285
15,092
15,463
16,029
16,898
17,555
117,433
106,974
102,282
96,806
90,923
2,504,763
2,519,898
2,537,773
2,549,134
2,558,232
270,946
269,157
268,159
259,341
263,390
920,537
892,366
917,697
774,869
793,951
Chicago.
5,335 21,045
5,110 20,041
4,284 19,402
4,323 19,421
4,286 19,609
San
St. Minne- Kansas
Louis. apolis. City. Dallas. Francisco.
3,212
2,942
2,669
2,672
2,703
8,323
8,190
8,028
8,063
8,260
2,562
2,154
1,837
1,948
1,951
7,349
7,707
7,928
8,390
8,721
18,446
18,612
98,520
94,899
102,347
114,948
114,711
18.846 9,615 29,035
21,901 10,803 33,032
23.847 10,516 36,980
20,583 9,114 36,523
14,056 8,000 32,389
3,729
3,987
3,429
4,859
2,022
43,149
44,534
44,721
41,297
31,794
56,907
58,774
68,055
75,398
72,328
174,824
191,241
,216,994
,228,288
1233,908
62,987
62,574
66,083
67,471
67,198
22,268
20,896
21,662
20,714
21,802
31,603 15,609
30,833 14,001
34,836 11,487
34,031 10,291
33,215 13,978
124,589
117,275
125,528
123,504
131,863
6,697 9,664
5,343 12,117
5,945 5,880
5,147 9,731
5,447 11,974
7,346
6,874
5,918
4,971
5,122
42,936
41,029
34,948
23,059
16,575
4,077
4,272
3,534
3,921
3,977
3,003
4,351
3,431
4,162
3,069
4,601
6,052
3,611
4,077
4,584
6,955
8,357
9,642
10,637
5,790
10,317
11,754
8,566
11,693
11,149
281,452
272,876
268,943
275,246
~ ~ ) , 819
75,914
81,717
75,229
74,276
71,689
•,734
88,097
96,391
99,622
92,601
337,325
347,210
373,691
385,716
384,803
89,122
91,689
96,133
94,647
87,934
43,209
44,240
43,637
42,053
41,131
67,801
72,071
77,264
76,579
72,139
33,642
34,052
32,486
34,177
30,511
196,501
192,175
196,300
194,149
193,224
3,786
3,753
3,907
4,310
3,755
4,304
4,098
4,869
4,566
4,650
4,139
4,337
3,710
4,265
4,302
5,596
5,718
5,268
5,970
6,198
12,649
12,118
13,586
13,120
13,802
11,256
11,342
11,392
11,224
11,298
814
774
844
639
791
3,504
3,551
3,651
3,638
3,127
6,052
5,921
6,169
6,270
6,399
2,569
2,491
2,513
2,522
2,485
785,035
785,453
759,112
780,250
800,544
186,199
190,811
198,426
180,864
177,395
285,756
276,974
273,812
279,812
294,469
80,053
86,054
78,939
78,541
75,991
92,330 349,974
93,815 359,328
101,659 '387,277
105,592 |398,836
98,799 398,605
100,378
103,031
107,525
105,871
99,232
44,023
45,014
44,481
42,692
41,922
71,305
75,622
80,915
80,217
75,266
39,694
39,973
38,655
40,447
36,910
199,070
194,666
198,813
196,671
195,709
43,434
37,533
39,881
38,920
42,020
353,659
338,758
374,871
255,926
268,370
110,140
107,329
102,154
109,324
110,731
54,949
62,807
62,917
41,553
47,015
43,823 51,784 120,356 34,564 14,067 32,344 11,191
35,328 50,019 120,923 34,225 13,980 30,457 10,985
40,905 47,800 117,775 31,091 13,510 24,955 12,280
42,020 47,397 112,594 32,040 8,205 24,311 10,919
39,080 47,685 112,004 31,266 6,058 24,979 11,296
50,226
50,022
49,558
51,660
53,447
1,143,202
1,173,879
1,117,660
1,067,684
1,076,305 i
55,993
62,652
59,987
53,918
53,804
255,742
275,783
265,364
240,008
249,132
34,886
34,275
34,227
37,641
34,245
86,543
90,906
91,267
82,178
79,213
71,463
72,539
68,763
68,097
69,397
61,856
62,838
57,194
59,393
60,570
244,751
242,461
215,580
199,616
199,803
46,107
44,324
40,104
42,516
44,721
103,609
94,302
76,637
81,667
87,138
7,113
7,130
5,924
12,798
12,555
46,829
43,140
37,205
39,601
44,848
12,387 14,802
11,443 11,510
9,411 9,910
8,336 8,691
8,908 6,755
1,801
1,703
1,661
1,959
1,989
1,260
1,108
1,191
1,000
936
8,037
7,373
2,977
2,686
3,996
764
575
570
435
1,515
25,690
25,689
25,685
25,924
25,574
550
550
550
550
550
1,005
1,005
1,005
1,005
1,005
1,233
1,233
1,233
1,233
1,233
621
621
621
911
911
4,490
4,490
4,490
4,490
4,490
1,153
1,153
1,153
1,153
1,153
19
19
23
23
23
5
5
5
5
5
239,375
239,375
237,875
234,875
233,375 !
20,436
20,436
20,436
18,936
18,936
1,434
1,434
1,434
1,434
1,434
834
833
833
834
833
10
10
10
10
10
55,276
55,276
55,276
55,276
55,276
28,280
28,280
28,280
27,780
26,780
23,799
23,799
22,799
21,799
21,799
58,248
58,513
56,719
63,918
61,879
116
116
116
115
116
62,099
59,585
57,915
56,971
57,919
8,867
8,867
8,866
3
3
3
3
3
12,260
12,260
12,260
12,260
11,760
15,564
15,564
15,564
15,564
15,564
17,655
18,418
54,969
53,098
54,070
53,329
53,408
110,545
116,90c
116,47C
110,099
112,214
25
25
25
171
171
10,566
10,270
7,738
5,965
5,440
3,979
3,979
3,975
3,975
3,975
1,408
1,408
1,408
1,358
1,008
4 .
4 !.
4 .
30,612 13,068
36,612 13,068
36,112 13,068
36,112 13,068
36,112 13,068
8,480
8,480
8,480
8,480
8,480
10,320
10,320
10,320
10,320
10,320
4,400
4,400
4,400
4,400
4,400
10,880
10,880
10,880
10,880
! 1O$S0
i
j
j
740
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON WEDNESDAYS, APR. 27 TO MAY 25, 1921—Contd.
RESOURCES—Continued.
[In thousands of dollars.]
Total.
U.S. certificates of indebtedness—Continued .
All other—
Apr.27
May 4
May 11
May 18
May 25
Total earning assets:
Apr.27
May 4
Mayll
May IS
May 25
Bank premises:
Apr.27
May 4
Mayll
May 18
May25
Five per cent redemption
fund against Federal Reserve Bank notes:
Apr.27
May 4
Mayll
May 18
May 25
Uncollected items:
Apr.27
May 4
Mayll
May 18
May 25
All other resources:
Apr.27
May 4
Mayll
May 18
May25
Total resources:
Apr.27
May 4
May 11
May 18
May
25
1
Includes bills discounted
for other Federal Reserve
Banks:
Apr.27
May 4
Mayll
May 18
May 25
2
Includes bankers' acceptances bought from other
Federal Reserve Banks
without their indorsement:
Apr.27
May 4
Mayll
Boston.
NewYork.
Phila- Cleve- RichAtdelphia. land. mond. lanta.
2,102
651
20
399
26
6,849 21,016
1,151
30
Chicago.
San
St.
Minne- Kansas
Louis. apolis. City. Dallas. Francisco.
1
1
1
1
1
348
30
97
6,198
145
6
16
40
13
18
2
132
115
77
38
10
14
133
180,937 130,581 131,089
189,885 1123,064 130,154
187,762 ! 124,823 122,374
176,081 125,570 124,269
155,655 123,460 125,670
414,594
411,889
377,031
361,696
356,550
95,656
93,351
86,002
89,252
91,736
80,929
81,091
78,957
80,833
76,610
113,656
109,293
102,093
100,508
102,243
74,564
72,487
74,754
72,798
73,254
183,728
189,558
186,127
180,591
183,010
730
730
730
738
742
3,108
3,107
3,537
3,586
3,586
626
626
626
627
627
599
599
599
599
599
2,052
2,052
2,445
2,445
2,446
1,824
1,824
1,829
1,838
1,839
542
548
548
550
549
601
601
601
601
601
628
540
658
669
621
1,868
1,749
1,871
1,897
1,960
523
523
523
523
523
603
412
410
423
278
916
916
916
916
916
361
361
361
361
361
544
544
544
544
544
47,384
50, 719
48,459
56,885
48,435
40,037
41,538
40,593
44,825
40,991
20,090
20,041
22,030
22,432
18,690
64,119 29,459
65,326 30,169
64,975 32,684
71,648 32,833
61,134 27, 631
14,765
14,115
15,274
15,669
14,298
40,293
38,602
40,934
42,343
38,883
25,718
24,108
24,345
23, 789
22,164
33,021
32,712
35,056
38, 749
34,374
623
622
588
662
621
864
812
827
827
639
455
418
431
492
614
582
612
647
664
2,248
2,279
2,154
2,270
2,298
610
611
596
622
638
146
156
161
169
208
585
604
624
518
533
941
1,614
1,398
1,222
1,162
493
909
537
623
2,204
424,483
424, 635
422,015
428,605
408,657
517,995
521, 550
514,035
516,884
502,668
253,684
253,487
247,275
251,869
243,438
245,481
245,862
248,063
254,347
245,186
835,909
843,678
836,845
839,933
824,133
227,252
228,311
227,956
229,728
220,387
141,065
141,387
139,882
140,385
133,915
228,807
;227,089
227,927
226,947
220,287
143,102
140,367
141,342
140,455
135,690
417,398
418,937
421,625
417,728
416,390
2,708
1,009
3,558
128,936
46,754
135
187
225
11,218
614
2,578
82,855
44,568
2,435,140
2,426,639
2,379,135
2,313,978
2,263,120
127,666
128,493
127,008
136,345
128,484
712, 511
713,962
736,299
674,671
663,199
189,229
183,412
175,905
191,364
183,249
21,832
21,908
23,007
23,192
23,396
3,316
3,340
3,396
3,424
3,446
4,913
4,918
4,918
4,918
5,089
520
520
527
527
527
1,831
1,869
1,951
2,039
2,043
1,773
1,775
1,901
1,901
1,903
11,339
10,886
11,374
11,476
11,174
1,022
1,022
1,022
1,022
772
1,734
1,679
1,929
1,980
2,059
1,300
1,300
1,300
1,300
1,300
1,239
1,239
1,239
1,240
1,239
519.828
524,651
532,776
580,270
510,175
43,955
46,715
46,647
50,475
42,664
114,375
112,636
116,510
126,734
115,346
46,612
47,970
45,269
53,888
45,565
11,578
12, 720
11,886
12,430
13,663
544
569
583
548
568
3,287
3,455
3,403
3,891
3,448
5,504,480
5,516, 702
5,495,951
5,490,480
5,379,760
447, 449
449,296
446,815
451,155
439,324
1,621, 855
1. 622,103
I', 622,171
1,592,444
1, 589,685
18,600
21,739
14,950
23,941
29,964
2,600
2,910
3,475
4,906
3,542
12,000
14,857
10,000
17, 810
25,347
103
73
73
629
21
4,000
3,972
1,475
1,225
1,075
LIABILITIES.
Capital paid in:
Apr.27
May 4
Mayll
,
May 18
May 25
,
Surplus:
Apr.27
May 4
Mayll
May 18
May25...
Reserved for Government
franchise tax:
Mayll
May 18
May25
Deposits:
Government—
Apr.27
,
May 4
Mayll
May 18
May 25
101,235
101,857
102,033
102,116
102,173
7,838
7,849
7,893
7,894
7,894
26,408
26,889
26.886
26.887
26,887
8,585
8,585
8,593
8,615
8,615
10,955
10,955
11,023
11,025
11,046
5,387
5,391
5,403
5,404
5,395
4,067
4,071
4,071
4,074
4,082
14,203
14,226
14,231
14,231
14,229
4,443
4,447
4,447
4,475
4,499
3,503
3,524
3,531
3,533
3,531
4,475
4,474
4,481
4,493
4,497
4,136
4,193
4,202
4,205
4,211
7,235
7,253
7,272
7,280
7,287
202,036
202,036
202,036
202,036
202,036
15,711
15,711
15,711
15,711
15,711
56,414
56,414
56,414
56,414
56,414
17,010
17,010
17,010
17,010
17,010
20,305
20,305
20,305
20,305
20,305
10,561
10,561
10,561
10,561
10,561
8,343
8,343
8,343
8,343
8,343
28,980
28,980
28,980
28,980
28,980
8,346
8,346
8,346
8,346
8,346
6,980
6,980
6,980
6,980
6,980
9,159
9,159
9,159
9,159
9,159
6,033
6,033
6,033
6,033
6,033
14,194
14,194
14,194
14,194
14,194
32,528
34,014
35,271
1,786
1,870
1,938
13,932
14,630
14,944
2,009
2,081
2,193
887
974
1,026
1,159
1,235
1,321
2,070
2,155
2,221
6,180
6,431
6,756
612
594
609
1,055
1,116
1,165
1,241
1,270
1,293
35,872
23,418
13,799
15,632
17,323
2,016
1,190
10,798
6,811
2,701
471
471
932
685
618
1,063
635
954
2,438
1,555
555
2,064
4,343
1,045
1,307
1,168
642
2,299
734
159
2,071
1,567
2,138
1,632
715
430
1,323
2,111
2,148
920
2,290
1,848
1,939
1,581
1,062
2,084
1,594
1,552
2,074
1,129
3,054
1,653
541
802
1,195
1,597
1,658
1,805
2,602
1,237
1,557
1,288
1,209
4,188
1,843
1,535
356
3,122
741
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON WEDNESDAYS, APR. 27 TO MAY 25,1921—Contd.
LIABILITIES—Continued.
[In thousands of dollars.]
Total.
Deposits—Con tinued.
Member bank—reserve
account—
Apr.27
May 4
May 11
May 18
May 25
All o t h e r Apr.27
May 4
May 11
May 18
May 25
Total deposits:
Apr.27
May 4
May 11
May 18
May25
Federal Reserve notes in
actual circulation:
Apr.27
May 4
May 11
May 18
May 25
Federal R e s e r v e B a n k
notes in circulation—net
liability:
Apr.27
May 4
May 11
May 18
May 25
Deferred availability items:
Apr. 27
May 4
May 11
May 18
May 25
All other liabilities:
Apr.27
May 4
May 11
May 18
May25
Total liabilities:
Apr.27
May 4
May 11
May 18
May 25
Boston.
1,656,718 108,096
1,671,385 107,476
1,687,985 108,762
1,665,517 109,423
1,655,609 107,442
Chicago.
San
St.
Minne- Kansas
Louis. apolis. City. Dallas. Francisco.
New
York.
AtPhila- Cleve- Richdelphia. land. mond. lanta.
647,896
651.039
666;330
633,657
653,641
101,302
101,404
102,208
104,342
95,388
138,128
144.852
137,020
143,638
135,579
53,331
54,010
53,573
54,505
54,226
42,765
46,075
45,682
46,087
44,230
234,362
240,795
241,518
243,988
239,407
64,088
63,883
63,872
64,078
62,538
41,487
41,722
41,187
42,097
38,808
69,376
69,851
71,741
68,472
70,403
1,095
1,120
1,053
1,444
1,069
771
759
856
974
769
524
493
490
995
474
353
338
521
341
2,766
2,680
2,992
3,969
2,324
663
710
750
1,277
694
497
469
556
549
520
562
517
33,309
34,428
31,660
35,493
33,024
773
15,533
17,593
15,598
15,804
16,303
1,725,899
1,729,231
1,733,444
1,716,642
1,705,956
110,990
109,487
110,169
111,093
109,410
674,227
675,443
684,629
649,932
670,415
103,329
103,209
103,879
106,849
97,092
139.853
148,049
139,431
145,167
138,412
58,198
55,548
55,370
56,668
55,342
45,390
47,162
46,179
48,679
46,138
239,266
245,107
245,225
248,387
243,054
66,862
66,741
65,542
67,645
65,080
43,923
43,772
42,805
44,730
40,922
2,830,118
2,828,586
2, 804,933
2,767,415
2,734,804
258,946
259,260
257,752
256,040
254,485
741,460
739,004
725,430
718,909
707,350
234,527
233,280
234,291
229,259
228,229
280,320
270,548
277,093
269,829
266,951
L36,559
135,733
L33,129
129,734
L27,109
55,530
:55,982
.59,026
.59,882
.57,783
470,823
469,877
465,267
458,934
456,793
109,808
110,973
109,146
108,600
105,849
156,249
153,859
149,894
147,766
144,834
15,006
14.644
13;846
13,795
12,289
22,015
21,31.3
21,489
22,707
24,301
15,293
14,847
14,160
13,075
11,970
20,728
20,424
20.449
18!366
18,334
8,251
8,005
7,695
7,439
6,644
12,881
]2,570
10,934
11,980
11,782
23.397
23,171
22,561
22,116
21,469
430,700
441,069
441.950
491;004
424,929
35,808
39,102
38.107
43.108
35,976
81,135
82,536
86,163
95,687
82,163
42,315
44,118
40,414
49,981
41,795
42,154
41.434
41,746
48,167
43,524
32,439
35,839
32,659
39,459
35,690
16,507
14,828
16,518
18,264
13,858
58,243
60,064
29,133
29,487
29,757
3,150
3,243
1,551
1,584
1,621
20,196
20,504
7,228
7,278
7,211
3,424
3,586
1,659
1,735
1,753
3,680
3,835
3,101
3,051
3,070
2,289
2,410
1,299
1,369
1,376
5,504,480
5,516,702
5,495,951
5,490,480
5,379,760
447,419
449,296
446,815
451,155
439,324
1,621,855
1,622,103
1,622,171
1,592,444
1,589,685
424,483
424,635
422,015
428,605
40S,657
517,995
521,550
514,035
516,884
502,668
253,684
253,487
247,275
251,869
243,438
245,-181
245,862
248,063
254,347
245,186
55.0
55.3
55.9
56.8
57.6
73.2
73.0
72.9
70.6
72.4
55.5
55.5
53.8
57.0
58.1
55.1
56.7
58.7
53.8
54.5
68.0
65.2
65.7
67.4
72.6
41.1
45.0
41.9
42.1
41.7
46.0
46.2
49.5
50.6
48.4
821
45,846 110,041
43,309 106,969
43,932 112,160
45,049 110,181
45,339 108,608
564
422
404
402
498
426
9,272
8,509
7,271
7,796
8,767
71,490
72,442
73,358
72,324
72,620
48,870
44,950
45,891
46,835
46,974
123,501
117,321
120,966
118,333
120,497
65,544
65,480
64,215
63,065
61,769
89.286
88;527
86,784
85,368
83,447
55,095
54,615
54,127
51,734
50,144
232,220
239.307
238,673
236,061
234,895
7,086
7,179
7,091
f.,982
6,897
6,885
6,776
6,627
6,451
0,310
11,023
11,228
11,454
11,809
12,084
5,562
5,606
5,464
5,219
5,079
8,122
8,096
8,124
7,821
7,675
49,135
51,944
50,058
56,568
48,536
28,672
28,532
31,222
31,446
27,411
12,148
12,618
13,425
13,171
11,903
40,615
38,383
39,831
40,987
35,593
21,540
23,051
23,633
24.382
21 j160
28,232
28,684
28,174
29,724
27,320
2,763 10,105
2,906 10,373
922 4.343
964 4,286
979 4,316
2,035
2,093
1,550
1,640
1,696
2,082
2,237
1,244
1,339
1,335
2,759
2,876
1,619
1,537
1,594
1,866
1,919
1,992
2,047
2,089
3,894
4,082
2,625
2,657
2,717
335,909
343,678
836,845
839,933
824,133
227,252
228,311
227,956
229,728
220,387
.41,065
.41,387
39,882
40,385
33,915
228,807
227,089
227,927
226,947
220,287
.43,102
.40,367
.41,342
.40,455
.35,690
417,398
418,937
421,625
417,728
416,390
49.3
50.3
54.5
56.4
57.0
56.8
58.0
61.6
60.1
58.1
40.2
41.2
41.6
39.6
40.8
44.4
47.0
50.5
50.9
48.2
38.2
40.1
38.6
41.0
38.0
56.0
54.6
55.3
55.5
55.1
MEMORANDA.
Ratio of total reserves to
deposit and Federal Reserve note liabilities combined, per cent:
Apr.27
May 4
May 11
May 18
May25
Contingent liability as endorsed on discounted
paper rediscounted with
other Federal Reserve
Banks:
Apr.27
May 4
May 11
May 18
May25
Bankers' acceptances sold
to other Federal Reserve
Banks without indorsement:
Apr.27
May 4
May 11
Contingent liability on bills
purchased for foreign correspondents:
Apr.27
May 4
May 11
May 18
May25
2,000
10,000
14,857
10,000
9,885
15,000
18,600
21,739
14,950
23,941
29,964
6,600
6,882
4,950
6,131
4,617
7,925
10,347
25
25
25
32,376
32,386
32,372
32,350
32,333
2,336
2,336
2,336
2,336
2,336
12,120
12,130
12,116
12,094
12,077
2,560
2,560
2,560
2,560
2,560
2,624
2,624
2,624
2,624
2,624
1,568
1,568
1,568
1,568
1,568
1,152
1,152
1,152
1,152
1,152
3,808
3,808
3,808
3,808
3,808
1,504
1,504
1,504
1,504
1,504
864
864
864
864
864
\ 536
\ 536
1,536
I!536
i;536
832
832
832
832
832
1,472
1,472
1,472
1,472
1,472
742
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
MATURITY DISTRIBUTION OF BILLS AND CERTIFICATES OF INDEBTEDNESS HELD BY ALL FEDERAL RESERVE BANKS
COMBINED.
[In thousands of dollars.]
Total.
Bills discounted:
Apr. 27
May 4
May 11
May 18
May 25
Bills bought in open market:
Apr. 27
May 4
May 11
May 18
May 25
United States certificates of indebtedness:
Apr. 27
May 4
May 11
May 18
May 25
Within 15
days.
16 to 30
31 to 60
days.
days.
!, 063,739
!, 066,245
!, 035,357
., 842,553
,870,256
1,229,368
1,226,865
1,230,466
1,090,790
1,108,808
201,058
210,847
219,057
193,790
188,845
364,964
357,156
328,419
316,268
322,907
103,609
94,302
76,637
81,667
87,138
58,175
54,067
48,746
51,006
56,289
21,429
19,359
14,652
18,057
16,408
18,060
15,873
9,982
10,014
12,148
242.083
240,384
241,433
363,811
280,129
4,000
1,020
4,098
86,332
36,607
2,165
3,568
2,108
15,206
4,769
7,040
18,940
9,926
10,320
9,227
61 to 90
days.
Over 90
days.
218,
215,
199,
178,
179,
49,950
55,719
58,383
63,594
70,132
221,273
204,182
211,444
226,313
203,329
FEDERAL RESERVE NOTES.
FEDERAL RESERVE AGENTS' ACCOUNTS ON WEDNESDAYS, APR. 27 TO MAY 25, 1921.
[In thousands of dollars.]
Boston,
RESOURCES.
Federal Reserve notes
on h a n d :
Apr.27
May 4
May 11
May 18
May25
:
Federal Reserve notes
outstanding:
Apr.27
May 4
May 11
May 18
May25
Collateral security for
Federal Reserve
notes outstanding:
Gold and gold certificates—
Apr.27
May 4
May 11
May 18
May 25
Gold redemption
fund—
Apr.27
May 4
May 11
May 18.
May 25
Gold settlement
fund—Federal
Reserve Board—
Apr.27
May 4
May 11
May 18
May25
Eligible paper—
A m o u n t requiredApr. 27
May 4
May 11
May 18
May 25
Excess amount
held—
Apr.27
May 4
May 11
May 18
May 25
813,269 105,090
806,550 99,570
784,287 98,730
791,481 93,930
794,718 93,130
New
York.
Philadelphia.
Cleveland.
Richmond.
Atlanta.
Chicago,
St.
Louis.
Minne- Kansas
apolis,
City. Dallas.
San
Francisco.
268,000
268,000
268,000
268,000
268,000
21,420
21,420
21,420
21,420
21,420
37,970
43,370
40,670
42,620
41,560
25,809
23,489
21,989
22,408
23,909
80,790
77,440
72,097
70,447
71,137
159,560
161,240
158,440
162,960
165,700
27,520
26,720
28,320
27,920
29,480
11,580
11,380
11,270
12,180
12,360
4,600
4,100
4,500
4,100
4,780
28,730
29,221
27,351
27,996
28,702
42,200
40,600
31,500
37, 500
34,540
255,650
253,788
253,888
245,808
244,182
308,357
300,521
299,683
295,106
292,336
141,978
140,954
140,628
136,268
133,226
163,736
163,954
166,578
169,571
165,811
510,620
507,875
508,790
502,563
497,243
133,491
131,978
130,888
131,775
129,601
68,179
67,687
66,563
65,385
64,293
98,520
97,250
95,453
94,048
93,552
59,337
57,239
57,596
55,755
53,735
280,513
284,599
288,851
282,228
290,587
13,052
13,052
13,052
13,052
13,052 : : : ; : : : ;
4,891
4,891
4,891
4,891
4,891
3,177,004
3,158,636
3,147,304
3,112,067
3,091,119
271,118
271,852
268,797
272,328
270,616
885, 505
880,939
869,589
861,232
855,937
233,852
233,852
233,853
293,852
343,853
5,600
5,600
5,600
5,600
5,600
176,924
176,924
176,925
236,924
286,925
119,167
119,127
117,383
112,347
127,424
24,621
19,835
22,940
17,671
22,159
15,041
14,590
14,149
13,654
23,359
964,841
973,108
1,022,902
1,052,420
1,033,952
140,000
150,000
140,000
160,000
150,000
1,859,144
1,832,549
1,773,166
1,653,448
1,585,890
247,558
276,521
286,093
221,370
312,906
23,775
23,775
23,775
23,775
23,775
11,594
13,532
13,631
10,552
13,925
16,035
16,699
15,761
16,334
15,824
3,500
3,500
3,500
3,500
3,500
6,110
6,110
6,110
6,110
6,110
3,407
5,274
5,555
4,898
4,828
15,180
15,596
15,350
15,644
16,264
4,346
3,533
3,643
3,030
2,857
3,016
1,644
2,410
1,462
2,550
3,243
3,473
1,476
3,671
2,855
3,483
3,875
4,362
3,166
3,853
15,607
18,427
15,283
18,742
15,469
106,000
106,000
106,000
111,000
101,000
112,389 155,000 38,500 50,000
110,389 155,000 35,500 50,000
112,389 155,000 40,500 59,000
110,389 155,000 34,500 67,000
98,389 155,000 31,500 64,000
159,644
175,645
201,644
212,644
217,644
52,531
52,931
56,330
58,331
58,231
6,200
6,200
6,200
6,200
6,200
28,360
27,360
33,360
30,360
30,360
7,235
5,235
2,234
2,234
5,234
108,982
98,848
110,245
104,7P2
116,394
100,897
96,417
100,257
89,057
92,857
587,540
583,425
572,515
499,654
444,653
131,667 113,547 99,884 106,829
129,867 105,047 102,805 105,180
127, 868 105,147 97,305 98,523
99,997 98,245 94,173
124.867
97,737 98,245 93,483
131.868
335,796
316,634
291, 796
274,275
263,335
70,504
69,404
64,805
64,304
62,403
45,911
46,791
44,901
44,671
42,491
66,917
66,417
60,617
60,017
60,337
43,728
43,238
46,109
45,464
39,757
155,924
167,324
163,323
158,724
158,724
5,643
10,898
5,535
16,579
15,522
36,651
43,428
74,523
3,298
84,966
42,036 14,066 8,033
59,778 3,794 8,716
58,855 12,393 7,638
32,078 10,641 13,599
34,794 9,827 15,684
37,261
53,991
44,460
40,622
52,425
10,883
9,702
6,918
10,588
143 991
25,378
24,629
24,080
26,537
24,356
27,527
23,595
22,244
21,251
22,536
21,800
20,692
19,976
18,560
24,770
14,140
8,258
8,679
7,439
10,733
4,140
9,040
792
20,178
2,302
3,594
2,649
2,823
3,523
3,481
JUNE,, 1921.
743
FEDERAL RESERVE BULLETIN.
FEDERAL RESERVE AGENTS' ACCOUNTS ON WEDNESDAYS, APR. 27 TO MAY 25, 1921—Continued.
[In thousands of dollars.]
RESOURCES.
Total resources:
Apr.27
May 4
May 11
May 18
May25
New
York.
Philadelphia.
Cleveland.
Richmond.
Atlanta.
Chicago.
2,075,661
2,073,306
2,081, 701
1,993,762
2,064,840
536,860
538,036
529,988
533.214
512^ 086
696,720
704,190
698,891
664,910
661,026
323, 831
309,191
315,638
305,585
300,188
416,295
414,064
412, 891
423,188
418,443
1,218,061
1,230,981
1,220,480
1,208,708
3,990,273 376,208 ! 1,153,505
3,965,186 371,422 1,148,939
3,931,591 367,527 1,137,589
3,903,548 366,258 1,129,232
3,885,837 363,746 1,123,937
277,070
275,208
275,308
267,228
265,602
346,327
343,891
340,353
337,726
333,896
167,787
164,443
162,617
158,676
157,135
244,526
1241,394
238,675
240,018
236,948
1,317,860
1,326,087
1,374,138
1,458,619
1,505,229
170,221
175,435
168.540
183,271
177,759
297,965
297,514
297,074
361,578
411,284
123,983
123,921
126,020
120,941
112,314
194,810
195,474
194,536
195,109
194,599
42,094
38,149
43,323
38,023
34,981
2,106,702
2,109,070
2,059,259
1,874,818
1,898,798
106,540
107,315
105,792
105,636
108,379
624,191
626,853
647,038
502,952
529,619
135,807
138,907
128,660
145,045
134,170
155,583
164,825
164,002
132,075
132,531
7,414,835
7,400,343
7,364,988
7,236,985
7,289, 862
652,969
654,172
641, 859
655,165
649, 884
536, 860
538,036
529,988
533,214
512,086
696,720
704,190
698,891
664,910
661,026
Total.
Boston.
7,414,835 652,969
7,400,343 654,172
7,364,988 641,859
7,236,985 655,165
7,289,862 649,884
St.
Minne- Kansas
Louis. apolis. Citv. Dallas.
305,385
300,378
297,014
302,058
1,212,611 303,673
San
Francisco.
229,167
222,195
217,650
213,447
214,420
169,204
164,391
162,519
158,066
160,942
617,366
618,056
617,881
609,395
626,447
667,230 159,208
665,523 159,695
662,943 159,081
79,759 103,120
79,067 101,350
77,833 99,953
77,565 98,148
76,653 98,332
88,067
86,460
84,947
83,751
82,437
322,713
325, ft9
320,351
319,728
325,127
56,907
58,774
68,055
75,398
72,328
174,824
191,241
216,994
228,288
233,908
62,987
62,574
66,083
67,471
67,198
22,268
20,896
21,662
20,714
21,802
31,603
30,833
34,836
34,031
33,215
15,609
14,001
11,487
10,291
13,978
124,589
117,275
125,528
123,504
131,863
113,950
106,599
109,698
108,886
108,072
114,862
113,896
106,161
107,772
109,167
373,057
370,625
336,256
314, 897
315,760
81,387
79,106
71,723
74, 892
77,394
71,289
71,420
68,981
71,208
66,847
94,444
90,012
82,861
81,268
82, 873
65,528
63,930
66,085
64,024
64, 527
170,064
175,582
172,002
166,163
169,457
323,831
309,191
|315,638
;305,585
300,188
416,295
414,064
412, 891
423,188
418,443
1,218,061
1,230,981
1,220,480
1,208,708
1,212,611
305,385
300,378
297,014
302,058
303,673
173,316
|171,383
168,476
1169,487
(165,302
229,167
222,195
217,650
213,447
214,420
1169,204
164,391
162, 519
158,066
160,942
617,366
618,056
617,881
609,395
626,447
173,316
171,383
168,476
169,487
165,302
LIABILITIES.
Net amount of Federal
Reserve notes received from Comptroller of the Currency:
Apr.27
May 4
May 11
May 18
May25
Collateral received from
Federal
Reserve
Banks:
Gold—
Apr.27
May 4
May 11
May 18
May 25
Eligible p a p e r May 4..*.'.'!*.]!!;
May 11
May 18
May25
Total liabilities:
Apr.27
May 4
May 11
May 18
May 25
2,075,661
2, 073,306
2,081,701
1,993,762
2,064,840
670,180 |161, Oil
669,115 158,698
CONDITION OF MEMBER BANKS IN LEADING CITIES.
OF PRINCIPAL ASSETS AND LIABILITIES OF
For the five weeks ending May 18 member MOVEMENT
REPORTING MEMBER BANKS-Continued.
banks in leading cities show a total liquidation
[In millions of dollars.]
of $260,000,000 of loans and discounts, or at
the rate of $52,000,000 a week, compared with
May
Apr. Apr. Apr.
18.
22.
27.
11.
15.
an average reduction in loans of $68,000,000
a week for the four weeks immediately pre871
872
875 870 870
United States bonds
ceding. During the same period the banks United
188
189
192
191
191
States victory notes
States certificates of inreduced their borrowings from the Federal United
206
196
236
239
286
debtedness
Keserve Banks by $267,000,000, or slightly Other bonds, stocks, and securi2,047 2,048 2,064 2,067 2,036 °,056
ties....
more than the reduction in their own loans.
Total loans and discounts,
Following is a chart showing changes in the
15,756 15,629 15,603 15,582 15,489]l5,447
and investmentsl
principal assets and liabilities of member banks
Reserve balance with Federal
for 1920 and 1921 to date; also a tabular sum- Reserve Bank
1,270 1,240 1,245 1,261 1,258 1,254
330
327 340 326
313
308
Cash in vault
mary for the most recent six weeks:
10,26310.,127 10, 13810,214 10,252 10,156
Net demand deposits
(
MOVEMENT OF PRINCIPAL ASSETS AND LIABILITIES OF
REPORTING MEMBER BANKS.
[In millions of dollars.]
Apr. I Apr.
15.
22.
Apr. May May May
27.
4.
11. 18.
821
821
820;
8211 821
Number of reporting banks
Loans and discounts:l
Secured by United States
744
740
738
736
739
Government obligations...
Secured by stocks and bonds
(other than United States
3,003
Government obligations).. 2,961 2,957 2,968; 2,985 2,9
8,656, 8,586 8, 542| 8,524! 8,478 8,379
Another
Total loans and discounts1. 12,357|12,281 12,249;12,253|12,196 12,097
i Including billsrediscounted with Federal Reserve Bank.,
Time deposits
G
t
d
Government
deposits
„„„
3,045
2,924 2,938 2,938 2,941 2,947
248
210 168
251
254!
I 329
Bills payable and rediscounts
with Federal Reserve Bank,
1,581 1,583! 1,523 1,533 1,506 1,314
total
Secured by United States
544
6561
677
707
694
Government obligations...
770
846
876
877
887
Another
Ratio of accommodation at Federal Reserve Banks to total
8.5
9.8
9.7
9.8
10.0
loans and investments
Liquidation for the five-week period under
review was heaviest for commercial loans
proper, which were reduced by $277,000,000,
Loans secured by Government obligations also
744
FEDERAL RESERVE BULLETIN.
JUNE,
1921.
MOVEMENT OF PRINCIPAL ASSETS AND LIABILITIES
OF REPORTING MEMBER BANKS
1920-1921
I:
2:
3:
4:
5:
ACCOMMODATION AT FEDERAL RESERVE BANKS.
U.S. OBLIGATIONS AND LOANS SECURED THEREBY.
NET DEMAND DEPOSITS.
TOTAL LOANS AND DISCOUNTS.
TOTAL LOANS AND INVESTMENTS.
is
18
17
16
15
14
13
12
II
10
9
8
7
6
5
43
2
I
0
I l l " Ml i
.
»•
4
^—
A
"V
~
JAN. fEB.
MAR APR.
^
—Sw
2
I
MAT JUNE JUDT AUQ. SEPT. OCT. NOV. PEC. JAM. f£B. MAR. APR. MAY JUNE JULT AUG. SEPT. OCT.
1920
show a decrease, but of $25,000,000 only, while
loans secured by stocks and bonds increased
by $42,000,000, apparently in connection with
the financing by member banks of recent large
flotations
of stocks and bonds. Among the
banks7 investments, no material changes are
shown in the holdings of the United States
bonds and Victory notes, while holdings of
Treasury certificates show a decrease of $51,000,000, largely owing to the fact that
April 15, the beginning of the review period,
was the date of a new issue of certificates,
whereas May 18, the end of the period, was
3
nov. DEC.
18
17
16
15
14
13
12
II
10
9
8
7
6
5
4
3
2
I
0
1921
three days after a certificate issue. Member
bank holdings of corporate and other securities show a slight increase for the five weeks.
As a consequence of these changes, total loans
and investments of the reporting banks declined from $15,757,000,000 on April 15, to
$15,447,000,000 on May 18, a decrease of $309,000,000, or about 2 per cent.
Accommodation of member banks at the
Federal Reserve Banks shows a decline for the
period from $1,581,000,000 to $1,314,000,000,
the ratio of accommodation decreasing from 10
to 8.5 per cent. The decrease of $267,000,000
745
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
in accommodation extended by the Federal Keserve Banks to the 820 reporting member banks
is to be compared with the reduction by
$262,000,000 in total discounts held by Federal
Reserve Banks, indicating that the recent liquidation has been mainly confined to the larger
cities, while country banks have slightly increased their borrowings from the Reserve
Banks.
Government deposits with the reporting
members show a constant decrease from April
15 to May 11, but an increase for the most
recent week, during which a new issue of Treasury certificates was allotted. Other demand
deposits (net) have shown considerable fluctuations, resulting in a decrease of $107,000,000
for the period. Time deposits showed a gradual
increase for the four weeks, followed by a large
advance for the most recent week, and stood
on May 18 at $3,045,000,000, compared with
$2,924,000,000 five weeks earlier. The increase in time deposits for the most recent week
amounted to $98,000,000, of which $93,000,000
represented the share of the members in New
York City, where deposits were apparently being built up with a view to their utilization in
June in connection with the redemption of
maturing corporate obligations.
Reserve deposits with the Federal Reserve
Banks fluctuated within a narrow range during
the five weeks and stood at the end of the period
about $16,000,000 lower than on April 15.
Cash in vault, after showing an increase of
$32,000,000 for the first four weeks, shows a
decline erf $14,000,000 for the most recent
week, and stood at the end of the period at
$326,000,000, as compared with $308,000,000
five weeks earlier.
PRINCIPAL RESOURCES AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES
WEDNESDAYS FROM APR. 27 TO MAY 18, 1921.
ON FRIDAY, APR. 22, AND ON
1. ALL REPORTING MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT.
[In thousands of dollars.]
Total.
Number of reporting
banks:
Apr.22
Apr.27
May 4.
May 11
May 18
Loans and discounts,
including bills rediscounted with Federal
Reserve Bank:
Secured by United
S t a t e s Governm e n t obligations—
Apr.22
Apr.27
May 4
May 11
May 18
Secured by stocks
and bonds (other
than United
S t a t e s Governm e n t obligations)—
Apr.22
Apr.27
May 4
May 11
May 18
All otherApr. 22
Apr.27
May 4
May 11
May 18
Total loans and discounts, i n c l u d i n g
b i l l s rediscounted
w i t h Federal Reserve Bank:
Apr.22
Apr.27
May 4
May 11
May 18
United States bonds:
Apr.22
Apr. 27
May 4
May 11
May 18
Boston.
New
York.
Philadelphia.
Cleveland.
RichAtmond. lanta.
113
113
113
113
113
821
8*21
821
821
821
Chicago.
St.
Minne- Kansas
Louis. apolis. City. Dallas.
113
113
113
113
113
San
Francisco.
69
69
69
737,530
738,864
743,686
736,339
714,852
39,754
39,218
37,910
39,070
37,386
328,503 71,402
332,895 72,696
341,928 71,709
335,069 72,246
320,084 72,984
63,653
63,680
62,034
63,169
62,507
27,274
26,554
26,214
26,124
26,040
22,751
21,354
21,549
22,690
21,113
89,529
87,293
88,185
85,860
84,454
2,957,254
2,968,385
2,985,391
2,981,643
3,002,893
184,783
185,129
190,856
195,619
195,489
1,218,362 202,680
1,223,664 203,474
1,231,617 198,984
li; 226; 183 194,817
1,246,642 195,245
349,745
348,508
348,077
340,012
338,268
112,342
111, 809
111,224
113,497
113,796
56,051
55, 426
54,557
54,371
55,812
426,885
432,349
442,793
449,673
447,201
118,631
119,131
118,563
118,708
118,180
29,808
30,009
30,397
30,160
31,012
8,586,475
8,541,545
8,523,913
8,478,014
8,379,584
632,900
631,810
627,821
623,273
623,085
2,977,376
'2,940,583
2,928,445
2,910,034
2,864,663
394,278
389,738
391,742
392,621
390,687
684,266
679,502
682,297
684,223
679,823
336,768
336,140
335,779
332,026
330,100
315,640
311,051
314,434
308,037
307,136
1,303,614
1,308,970
1,311,390
1,300,583
1,265,963
322,179
324,076
322,^26
320,095
320,600
233,585
231,279
228,261
227,961
228,101
12,281,259
12,248,794
12,252,990
12,195,996
12,097,329
857,437
85b,157
856,587
857,962
855,960
4,524,241
4,497,142
4,501,990
4,471,286
4,431,389
668,360
665,908
662,435
659,684
658,916
1,097,664
1,091,690
1,092,408
1,087,404
1,080,598
476,384
474,503
473,217
471,647
469,936
394,442
1387,831
1390,540
385,098
384,061
1,820,028
1,828,612
1,842,368
1,836,116
1,797,618
464,095
465,839
463,287
459,373
458,975
276,879
273,965
271,513
271,175
272,262
869,685
870,337
866,633
871,790
870,775
33,072
33,159
32, &99
33,344
333497
305,572
304,109
304,554
307,878
307,993
44,499
44,470
44,450
45,245
45,309
97,685
98,012
98,649
99,583
99,729
60,780
60,790
60,272
60,800
60,119
38,923
39,872
39,859
39,053
19,738
77,772
74,928
72,487
72,850
72,823
23,285 13,486 21,599
22,632 12,677 21,476
21,998 12,855 22,081
20,570 13,054 21,564
20,195 13,149 20,740
7,352
7,270
7,210
7,296
7,448
28,942
31,119
30,013
29,627
28, 752
71,049 37,126
71,361 36,660
72,189 36,213
72,329 36,688
73,419 37,057
149,792
150,865
149,921
149,586
150,77i
394,137
393,558
387,002
385,581
386,024
220,772
221,775
222,404
223,135
218,746
770,960
773,063
771,612
770,445
764,656
486,785
486,395
481,272
479,474
480,183
265,250
265,705
265,827
267,119
263,251
949,694
955,047
951,546
949,65i
944,180
27,629 16,507 33,940 34,319
27,700 16,547 33,672 34,074
27,882 16,196 32,282 33,468
27,706 16,116 32,684 33,240
27,676 16,281 32,544 32,966
98,987
103,004
103,53c
102,691
102,100
746
FEDERAL. RESERVE BULLETIN.
JUNE, 1921.
PRINCIPAL RESOURCES AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES ON FRIDAY, APR. 22, AND
ON
WEDNESDAYS FROM APR. 27 TO MAY 18, 1921—Continued.
1. ALL REPORTING MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT-Continued.
[In thousands of dollars.]
Total.
United States Victory
notes:
Apr. 22
Apr. 27
May 4
May 11
May 18
United States certificates of indebtedness:
Apr. 22
Apr. 27
May 4
May 11
May 18
Other bonds, stocks,
and securities:
Apr. 22
Apr. 27
May 4
May 11
May 18
Total loans and discounts, and investments, including
bills rediscounted
with Federal Reserve Bank:
Apr. 2 2 . . . . . . . . . . . . .
Apr. 27
May 4 . . . . . . . . . . . . . .
May 11
May 18.....
Reserve with Federal
Reserve Bank:
Apr. 22
Apr. 27
May 4
May 11
May 18
Cash in vault:
Apr.22
Apr.27
May 4
May 11
May 18
Net demand deposits:
Apr.22....."
Apr.27
May 4
May 11
May 18
Time deposits:
Apr.22
Apr.27
•
May 4
May 11
May 18
Government deposits:
Apr.22
Apr.27
May 4
May 11
May 18
Bills payable with Federal Reserve Bank:
Secured by United
States Governm e n t obligationsApr. 22
Apr.27
May 4
May 11
May 18
All otherApr. 22
Apr.27
May 4
May 11
May 18
Boston.
New
York.
Philadelphia.
Cleveland.
RichAtmond. lanta.
Chicago.
San
Francisco.
St.
Minne- Kansas
Louis. apolis. City.
191,082
192,008
189,431
188,752
188,387
6,034
5,951
6,032
6,051
6,057
82,676
84,255
83,538
83,549
83,675
10,101
10,070
9,615
9,323
8,573
20,342
20,490
20,466
20,757
21,217
7,164
7,153
7,188
6,684
.6,662
3,143
3,054
3,055
3,087
3,057
34,636
34,662
33,609
33,684
34,066
1,987
2,143
2,148
2,142
2,120
1,205
1,221
1,215
1,383
1,372
3,241
2,765
2,858
3,030
3,120
1,723
1,140
1,141
1,137
1,137
18,830
19,102
18,566
17,925
17,331
239,169
227,739
208,461
196,639
236,297
11,304
9,669
8,058
7,491
12,905
122,740
116,628
108,830
103,870
102,876
18,546
17,844
15,832
14,373
21,596
17,908
16,808
14,584
12,365
17,329
6,230
5,558
4,802
3,865
6,811
2,284
2,260
2,136
2,014
2,406
28,574
27,701
25,529
25,035
34,724
2,002
2,456
1,365
1,077
3,346
3,615
2,866
1,012
535
3,636
5,707
5,613
5,660
5,476
7,612
1,998
1,872
1,894
1,798
2,813
18,261
18,466
16,759
18,740
20,243
2,048,099
2,064,512
2,066,793
2,036,092
2,054,609
126,487
127,198
128,504
126,460
128,370
736,148
752,195
748,240
726,492
728,887
156,254
156,103
156,137
155,691
156,934
347,130 67,373 19,325
347,669 67,382 19,278
345,888 66,452 19,760
344,078 66,331 19,487
351,895 66,172 20,201
46,475
46,360
46.723
46,660
47,650
9,670
9,566
10,094
9,862
10,107
172,156
170,722
174,095
172,956
171,671
15,629,294
15,603,388
15,582,308
15,489,269
15,447,397
1,034,334
1,032,134
1,032,180
1,031,308
1,036,789
5,771,377
5,754,327
5,747,152
5,693,075
5,654,820
897,760
894,395
888,469
884,316
891,328
1,514,449
1,508,792
1,510,823
1,502,772
1,505,182
599,716
597,959
594,614
592,129
593,390
475,865
469,309
472,639
466,131
465,813
2,308,140
2,313,572
2,319,881
2,311,763
2,291,126
1,240,344
1,245,389
1,260,955
1,257,684
1,254,432
73,641
73,301
73,408
74,837
76,166
586,691
592,707
597,203
592,594
578,048
63,219
62,618
63,019
63,408
64,865
93,033
92,648
96,969
91,172
97,062
31,245
31,460
31,567
31,940
32,077
27,458
26,118
29,168
28,213
28,952
174,249
172,623
179,412
179,869
182,976
39,584
42,124
41,926
41,111
41,938
312,642
330,015
327,314
339,783
325,740
22,445
23,046
22,152
23,290
22,245
104,734
113,216
111,346
113,148
108,917
16,123
19,723
18,616
19,170
19,141
29,263
30,128
30,883
33,068
32,552
14,048
15,570
13,433
18,287
16,637
10,783
11,346
10,096
10,423
9,657
53,077
55,347
55,888
56.578
54.579
8,687
7,617
7,830
7,629
7,733
10,127,155
10,138.258
10,214', 260
10,252,005
10,155,685
719,808
719,774
730,028
733,059
735,800
4,541,588
4,556,482
4,622,093
4,593,595
4,532,891
632,345
630,885
632,711
640,016
627,490
828,570 1306,999
820,858 306,752
829,590 307,685
819,460 308,343
840,839 306,746
225,547
1224,323
1221,969
225,6S8
222,232
1,250,722
1,264,907
1,270,111
1,309,176
1,292,017
307,152
309,099
308,623
310,899
303,156
2,937,916
2,938,468
2,941,238
2,947,242
3,044,910
172,371
170,945
173,807
177,923
177,460
460,382
462,513
455,096
455,073
548,296
41,082
41,265
41,210
41,450
41,105
427,989
428,750
427,291
427,705
431,018
119,220
118,824
120,238
120,716
121,141
143,444
142,870
145,553
146,623
146,807
654,546
653,791
655,463
654,611
657,571
2-53,674
251,073
210,386
168,360
247,736
19,932
19,757
16,615
13,204
20,999
123,609
123,609
102,869
78,555
112,348
27,207
25,386
18,994
17,708
25,437
23,171
23,246
19,442
15,221
19,752
6,550
6,535
5,475
4,275
6,715
2,323
2,254
2,017
1,677
2,217
23,543
23,543
20,591
17,190
27,354
6,370
6,311
5,537
4,707
8,0S7
516,754
488,834
469,628
509,351
372,568
14,765
13,873
12,987
12,390
12,320
232,639
216,886
199,956
248,431
126,509
42,144
42,154
38,241
35,514
41,487
35,643
33,403
40,748
43,585
19,913
28,902
28,182
25,091
25,888
27,132
! 26,118
! 25,228
'23,214
22,259
23,256
66,371
61,081
60,787
59,204
56,186
16,144
13,762
15,490
14,824
15,989
1,525
1,503
1,245
1,987
2,365
280,850 49,158 37,073
281,792 49,955 36,292
284,716 49,135 37,049
282,663 49,133 36,279
286,309 49,862 36,551
183
325
135
232
45
350
130
130
130
120
563,086 317,531 576,148 312,960 1,257,928
565,520 {313,877 574,805 312,357 jl, 266,341
561,134 309,696 568,795 312,424 1,264,501
556,629 308,696 567,324 313,156 1,261,970
558,289 313,752 571,109 310,274 '1,255,525
18,549
16,921
17,595
16,891
17,897
42,488
38,789
40,020
41,897
38,828
20,180
21,998
20,315
20,303
22,102
7,041 L2,532
7,280 12,899
6,928 12,879
7,498 13,455
6,770 12,987
10,351
9,859
9,833
12,497
10,227
198,456
197.846
196' 710
199,439
197,080
565,557
564,344
553,890
562,111
563,266
143,161 69,735 104,513 59,841
142,839 69,716 104,955 60,577
143,144 71,924 104,560 60,474
143,638 72,450 105,043 60,199
143,417 71,843 104,179 61,434
541,652
541,423
542.478
541,813
540,639
175,449
169,907
165,974
169,921
374,962
373,081
374,876
380,298
163,081 |371,127
5,876
5,876
5,400
4,851
7,654
70,007
74,082
70,353
75,449
73,521
23,558
23.984
24,430
24,740
24,315 .
3,019
3,019
3,558
3,041
5,637
2,096
1,633
1,532
1,230
2,357
9,97S
9,904
8,316
6,701
9,159
6,249 16,237
5,422 16,666
5,033 15,232
4,242 10,329
4,888 9,784
4,992
4,747
4,348
4,049
4,539
26,550
27,427
28,501
28,639
30,563
100
100
100
885
1,075
620
620
620
620
560
357
61
360
282
197
747
FEDERAX. RESERVE BULLETIN,
JUNE, 1921.
PRINCIPAL RESOURCES A N D LIABILITIES OF M E M B E R B A N K S I N LEADING CITIES O N FRIDAY, APR. 22, A N D O N
W E D N E S D A Y S F R O M A P R . 27 T O MAY 18, 1921—Continued.
1. ALL REPORTING MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT.
[In thousands of dollars.]
Boston.
Bills rediscounted with
Federal R e s e r v e
Bank;
Secured by United
States Government o b 1 i g ations—
Apr.22
Apr.27
May 4
May 11
May 18
All other—.
Apr.22
,
Apr.27
May 4
May 11
May 18
Philadelphia.
Cleveland.
6, 782
6 787
;
6, 548
6 620
6, 568
190,217
188,323
186,175
177,098
171,412
11,373
9,978
7,646
9,858
8,126
98,083
98,823
97,479
90,809
87,906
33,718
34,647
35,938
3a, 759
34,142
874,370
844,315
875,979
817,931
767,708
55,804
50,296
55,508
52,241
46,324
263,789
242,142
264,328
253,971
226,853
31,617
29,968
29,192
28,984
32,661
76
75
80
81
74
449
930
994
157
790
San
RichAtmond. lanta.
Chicago.
7,275
6,332
6,359
6,283
5,488
16,960
15,687
16,214
15,731
14,932
4,411
4,134
4,106
2,777
2,816
1,157
505
716
702
913
4,076
3,450
3,086
3,022
3,082
659
700
612
717
602
2,648
4,406
4/533
4,321
4,142
31,435
29,671
30,477
24,637
26,702
186,122
184,085
182,499
156,625
141,664
31,390
32,967
30,947
26,675
2©, 205
27,818
28,779
26,152
24,303
32,811
41,062
38,898
37,207
35,561
34,553
16,354
16,938
17,406
17,070
13,978
67,398
67,721
72,770
71,560
64,649
3, 075
2, 874
2, 938
2, 499
2,695
45
46
48
44
43
132
920
499
847
518
St.
Minne- K a n s a s
Louis. apolis. City. Dallas.
Francisco,
2. MEMBER BxlNKS IN F E D E R A L R E S E R V E BANK CITIES.
Number of reporting
banks:
Apr.22
Apr.27
May 4
May 11
May 18
Loans and discounts,
including bills rediscounted with Federal
Reserve Bank:
Secured by United
States Government o b 1 i g a tions—
Apr.22
Apr.27
May 4
May 11
May 18
Secured by stocks
and bonds (other
than United
States Governm e n t obligations)—
Apr.22
Apr.27
May 4.
May 11
May 18
All other—
Apr.22
Apr.27
May 4
May 11
May 18
Total loans and discounts, including bills
rediscounted w i t h
Federal R e s e r v e
Bank:
Apr.22
Apr.27
May 4
May 11
May 18
United States bonds:
Apr.22
Apr.27
May 4
May 11
May 18
United States Victory
notes:
Apr.22
Apr.27
May 4
May 11
May 18
United States certificates of indebtedness:
Apr.22
Apr.27
May 4
May 11
,
May 18
284
284
284
284
284
10
10
10
10
10
8
8
8
8
8
52
52
52
52
52
13
13
13
13
13
10
10
10
10
10
15
15
15
15
15
539, 586
544,474
551,485
543,086
525,638
33,555
32,571
31,321
32,461
31,031
303,704
308,425
317,386
310,439
295,614
68,341
69,602
68,632
69,197
69,945
17,922
18,053
17,479
18,250
18,226
6,283
6,319
6,115
6,177
6,228
3, 638
3, 842
3, 502
3, 617
3, 093
63,753
62,111
62,771
60,661
60,707
14, 415
13, 933
13, 479
12, 329
12, 055
8,460
8,397
8,501
8,458
8,451
5,951
6,003
6,958
6,437
5,614
1,883
1,889
1,978
1,948
1,830
11,681
13,329
13,363
13,112
12,844
2,046,709
2,055,876
2,082,032
2,073,721
2,085,550
141,052
141,264
147,009
151,752
150,047
1,055,126
1,055,979
1,071,791
1,063,474
1,077,333
183,787
184.406
179,585
175.407
176,122
134,992
136,231
134,308
128,273
129,302
15,453
15,552
15,467
15,305
15,765
9, 394
9, 457
9, 359
9,419
9,301
307,987
313,294
323,339
329,176
325,392
86. 454
86 896
86,613
86,723
86 563
13,144
13,232
13,652
13,327
13,980
24,455
24,704
26,736
26,730
27,364
9,496
9,444
9,170
9,270
9,289
65,369
65,417
65,003
64,865
65,092
5,632,177
5,599,034
5,588,640
5,553,405
5,474,425
493,963
493,866
490,003
481,389
481,563
2,666,743
2,630,606
2,621,582
2,600,771
2,556,507
358,494
.354,482
356,702
357,573
355,936
273,836
270,639
275,636
280,655
275,776
72,791
70,336
71,155
69,948
68,775
54, 298
52, 936
53,669
53, 562
51, 813
827,954
835,962
839,264
833,700
808,745
>02,489
i03 873
-02 991
•00; 126
.01 271
110,905
110,680
109,269
108,814
108,792
140,582
141,171
137,572
135,946
139,319
57,451
58,694
58,530
58,830
56,374
372,671
375,789
372,264
372,091
369,554
8,218,472
8,199.384
8,222,157
8,170,212
8,085,613
668,570
667,701
668,333
665,602
662,641
4,025,573
3,995,010
4,010,759
3,974,684
3,929,45*4
610,622
608,490
604,919
602,177
602,003
426,750 94,527
424,923 92,207
427,423 92,737
427,178 91,430
423,301 90,768
330 1,199,694 303 358 132,509
235 1,211,367 iOL 702 132,309
530 1,225,374 303 086 131,422
598 1,223,537 299 178 130,599
207 1,194,844 299 889 131,223
170,988
171,878
171,266
169,113
172,297
68,830
70,027
69,678
70,048
67,493
449, 721
454,535
450,630
450,06S
447,490
437,506
439,932
438,243
443,229
443,353
9,758
9,838
9,665
10,113
10,161
6,910
6,611
6,619
6,569
6,567
57,329
61,360
61,114
60', 707
60,735
107,163
108,830
107,118
106,382
105,865
544
560
541
547
552
72,718
74,295
73, 585
73,634
73,990
6,817
6,786
6,328
6,036
5,279
163,810
154,647
141,327
135,121
159,848
3,481
2,197
1,307
1,465
6,110
117,094
111, 214
103,571
99,581
97,083
16,678
15,977
14,080
12,661
19,729
261,682 32,587
259,700 32,548
260,313 32,936
263,498 33,260
263,402 33,332
67,
66
66
66
64
8,775
8,835
8,907
9,078
9,016
7,259
7,260
7,263
7,262
7,263
4 ; 360
4 362
4,362
4 427
4; 362
20,048
20,206
19,555
20,076
20,250
13 066
13 356
3, 2781
13 074
13 126
4,438
4,488
4,363
4,376
4,415
11,294
11,368
9,868
10,789
10,724
2,007
1,997
2,080
2,071
ir~
181
180
180
181
181
65
65
65
65
65
13,178
13,421
13,131
13,048
13,267
304
460
455
498
434
473
473
473
552
550
406
570
734
821
848
837
830
1,508
246
234
302
205
551
225
225
225
215
215
11,443
10,899
10,225
10,115
14,860
992
878
905
723
2 ,894
2,197
1,796
723
469
2,814
629
625
667
503
2,025
9,961
10,156
9,679
8,985
8,726
1,104
978
951
855
1,770
8,741
8,776
7,534
7,499
10,289
748
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
PRINCIPAL RESOURCES AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES ON FRIDAY, APR. 22, AND ON
WEDNESDAYS FROM APR. 27 TO MAY 18, 1921—Continued.
2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES—Continued.
[In thousands of dollars.]
New
York.
Philadelphia.
Other bonds, stocks,
and securities:
Apr.22
Apr.27
May 4
May 11
May 18
Total loans and discounts, and investments, including bills
rediscounted w i t h
F e d e r a l Reserve
Bank:
Apr.22
Apr.27
May 4
May 11
Apr.18
Reserve with Federal
Reserve Bank:
Apr.22
Apr.27
May 4
May 11
May 18
Cash in vault:
Apr.22
Apr.27
May 4
May 11
May 18
Net demand deposits:
Apr.22
Apr. 37
May 4
May 11
May 18
Time deposits:
Apr.22
Apr.27
May 4
May 11
May 18
Government deposits:
Apr.22
Apr.27
May 4
May 11
May 18
Bills payable with Federal Reserve Bank:
Secured by United
States Governm e n t ' obligationsApr. 22
Apr.27
May 4
May 11
May 18
All other—
Apr.22
Apr.27
May 4
May 11
May 18
Bills rediscounted with
Federal
Reserve
Bank:
Secured by United
States Government obligationsApr. 22
Apr.27
May 4
May 11
May 18
All other—
Apr.22
Apr.27
May 4
May 11
MaylS
51,940
52, 538
53, 849
51,563
53,104
563,479
579,355
575,800
554,119
555,272
126,281
126,209
126,026
125,857
127,339
10,049,214
10,038,748
10,042,054
9,961, 780
9,918,094
734,293
732,834
733,695
729,290
732,568
5,040,546
5,019,574
5,024,028
4,965,516
4,919,201
905,134
913,417
924,246
922,269
905,157
58,899
58,643
58, 882
59,749
61,265
540, 503
547,220
551, 734
546, 508
530,124
181, 586
193,510
188, 524
195,848
187,050
St.
Minne- Kansas Dallas.
Chicago. Louis.
apolis. City.
Richmond.
Atlanta.
67,339
67,670
67,299
66,971
71,907
4,317
4,317
4,256
4,261
4,259
4,457
3,245
3,234
3,237
3,215
792,985
790,010
784,289
779,991
787,682
505,851
504,273
506,546
506,128
507,704
106,530
104,198
104,738
103,339
103,022
76,437
74,132
74,416
74,542
72,064
57, 565
57,408
56,601
57,978
58,743
26,805
27,486
28,384
26,143
27,438
4,898
5,227
4,602
5,544
4,759
4,871
3,494
5,005
4,863
4,457
124,756
124,506
129,648
130,012
128,010
13,964
14,107
13,255
13,837
13,035
92,754 13,513
99,959 15, 879
97,665 14,669
99,487 15,182
95,394 15,195
7,216
7,491
7,760
9,438
8,508
1,057
1,013
1,088
1,075
1,101
1,918
1,881
1,577
1,740
1,664
7,068,069
7,080,147
7,166,087
7,175,423
7,068,513
559,143
559,854
567,786
568,482
573,308
4, 055, 860 551,366
4,062,354 549,608
4,134,245 550,395
4,102,083 558,383
4,027,569 546, 849
197,568
199,351
204,195
200, 873
206,794
45,106
43,918
45,431
45,856
45,554
1,373,663
1,377,061
1,371, 986
1,372,941
1,472, 662
67,849
67,028
68,788
70, 006
70, 058
296,768
300.387
293, 261
293,060
386, 326
28, 872
29,015
28,936
29,147
28,724
229,518
229,943
228. 401
228', 543
233, 795
198, 860
196,471
162, 768
129,399
194, 433
16. 050
16.' 000
13, 571
10; 748
17, 454
119,375
119, 375
99,285
75,758
108.388
26,386
24,624
18,437
17,193
24,337
333,294
318,631
292, 890
333,736
22L 604
11,725
10,528
9,761
9,096
9,016
208,043
195,826
178, 821
226,987
105,219
39,178
39,460
35,145
32, 223
38,225
Total.
1,122,263
1,135,955
1,133,209
1,106,836
1,123,415
Boston.
Cleveland.
144,233
144,914
141, 860
140,993
149,420
San
Francisco.
42,588
42,473
41,519
41,500
41,440
8,365
8,444
8,764
8,536
8,617
10,975
10,922
10,824
10,812
11,341
3,103
3,103
3,121
95,125
93,002
96,675
95,884
94,380
1,388, 596 360,308
1,400,807 361,869
1,410,145 359,243
1,407,769 354,973
1,392,641 357,783
147,982
147,510
145,745
144,532
147,619
194,770
195,199
193,195
191,951
197,208
80,039
80,513
80,382
80,606
78,982
620,877
627,829
625,632
623,143
621,620
29,014
30,205
31,120
28,911
29,993
9,209
7,748
8,254
7,984
8,270
15,149
13,733
14,409
14,954
13,119
4,848
6,233
4,786
4,557
5,877
28,617
31,516
30,821
35,066
33,102
31,014
33,231
32,395
32,743
31,691
4,011
3,751
3,729
3,602
3,836
2,306
2,284
2,201
2,454
2,112
3,158
3,206
3,221
3,410
3,343
1,859
1,606
1,879
3,410
1,811
8,816
9,102
9,085
9,470
9,360
36,061
35,665
35,974
36,911
35,265
883,069
891,116
894,971
920,049
904, 946
212,266
214,797
213,487
213,935
207,654
78,884
78,591
79,524
74,377
136,352
135,034
137,472
137,904
135, 099
54,291
53,521
53,504
55,521
54,353
255,999
256,045
250,036
255,902
256,745
23,643
23,641
23, 623
23,590
23, 545
21, 920
21, 878
21,969
22,031
22,073
314,710
314,374
314,312
313, 586
315,706
82,212
82,076
82,452
82,444
82,318
27,442
27,523
28,291
28, 711
28,510
15, 017
14,968
14,894
14,965
14,908
7,645
7,630
7,632
7,240
7,243
258,067
258,598
259,427
259,618
259,456
3, 337
3,337
2,676
1.885
3; 664
874
874
691
501
871
275
270
234
205
13.606
13; 606
12; 075
10, 216
15, 054
4,899
4,789
4,220
3,569
7,104
2,810
2,810
2,564
2,285
3,295
2,434
2,434
2,067
1,640
3,987
1,601
1,211
1,136
895
1,990
7,213
7,141
5,812
4,504
8,196
6,625
5,743
5, 843
5,525
4,273
7,242
6,160
4,696
6,228
705
705
705
705
705
20,905 9,824
18,945 9,496
19,904 10,158
19,101 9,822
22, 384 10,139
2,132
2,182
1,101
853
994
9,546
7,343
3,871
3,667
130
130
130
805
130
130
130
120
157, 883
158, 612
156, 732
148,176
145,163
11,003
9,612
7,280
9,417
7,769
96,400
97,107
95,786
89,109
86,324
33,588
34,517
35, 808
33,629
34,041
855
838
570
527
600
610,025
580, 807
620,022
580,430
532,634
55,129
49,316
54, 513
51,071
44, 750
237,976
214, 907
239,337
231,351
202, 491
30,014
28, 550
28,071
27, 876
31,840
58,435
55,488
62,461
62,989
53,588
10,545
10, 891
12,002
10,663
9,405
3,164
18,087
20, 040
19,413
19,325
20,383
685
795
673
661
553
381
239
8,448
9,068
8,790
9,853
2,838
2,560
2,621
1,451
1,578
481
487
670
638
660
1,265
1,197
1,141
1,064
1,115
64
68
50
44
1,293
3,121
3,167
3,120
2,940
5,579
4,089
5,022
4,170
3,676
108,207
111, 525
110,981
91,058
83,362
17,931
17,494
16,385
13,044
16,004
20, 290
20,105
18,900
17,731
23,561
19,334
18,821
18,124
18,098
17,748
5,498
6,641
6,702
6,437
4,461
43, 087
42,980
47,544
45,942
41, 804
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
PRINCIPAL R E S O U R C E S AND LIABILITIES O F M E M B E R BANKS I N LEADING CITIES ON FRIDAY, A P R . 22, AND O N
WEDNESDAYS F R O M APR. 27 T O MAY 18, 1921—Continued.
3. M E M B E R B A N K S I N F E D E R A L R E S E R V E B R A N C H C I T I E S .
[In thousands of dollars.]
RichCleveSt. Louis Minne- Kansas
land
mond Atlanta4 Chicago5
apolis
City
6
district .2 district.s district. district. district. district.7 district.8
Number of reporting banks:
Apr.22
Apr. 27
May 4
May 11
May 18
Loans and discounts, including bills rediscounted with Federal Reserve Bank:
Secured by United States Government obligationsApr. 22
Apr. 27
May 4
May 11
May 18
Secured by stocks and bonds (other
than United States Government
obligations)—
Apr. 22
Apr.27
May 4
May 11
May 18
All other—
Apr.22
,
Apr.27
May 4
May 11
,
May 18
Total loans and discounts, including bills rediscounted with Federal Reserve Bank:
Apr. 22
Apr.27
May 4
May 11
May 18
United States bonds:
Apr.22
Apr.27
May 4
May 11
May 18
United States Victory notes:
Apr.22
Apr. 27
May 4
May 11
May 18
United States certificates of indebtedness:
Apr. 22
Apr.27
May 4
May 11
May 18
Other bonds, stocks, and securities:
Apr.22
Apr.27
May 4
May 11
May 18
Total loans and discounts, and investments, including bills rediscounted
with Federal Reserve Bank:
Apr.22
Apr.27
May 4
May 11
May 18
Reserve with Federal Reserve Bank:
Apr. 22
Apr.27
May 4
May 11
May 18
Cash in vault:
Apr.22
Apr.27
May 4
May 11
May 18
217
217
217
217
217
Dallas
districts
San
Francisco
district.i°
40
40
40
40
40
18
18
18
18
18
21
21
21
21
21
13
13
13
13
13
20
20
20
20
20
5
5
5
5
5
29
29
29
29
29
14
14
14
14
14
45
45
45
45
45
111, 663
109,095
108,694
109,257
106,182
8,780
8,544
8,701
8,627
8,493
34,481
34,468
34,091
34,415
33,931
7,623
7,567
7,234
7,192
7,275
13,249
12,097
12,627
13,308
12,860
11,368
11,272
11,139
11,205
9,503
7,839
7,671
7,482
7,205
7,105
62
61
67
70
70
10,121
10,044
9,980
9,949
9,866
1,969
1,886
1,802
1,858
2,247
16,171
15,485
15,571
15,428
14,832
487,585
486,513
486,149
485,766
488,319
55,784
55,764
55,984
55,812
57,230
157,971
156,069
158,087
156,326
153,264
28,862
28,674
28,712
29,035
29,389
35,682
35,412
34,602
34,614
36,107
60,298
60,152
60,077
61,218
62,096
29,574
29,646
29,347
29,395
29,025
509
495
527
536
542
28,889
29,358
28,611
28,771
29,162
14,567
14,226
14,066
14,287
14,699
75,449
76,717
76,136
75,772
76,805
1,539,292
1,532,004
1,527,100
1,515,682
1,500,796
109,300
108,173
107,806
107,013
106,314
271,234
269,965
265,574
262,720
263,669
96,789
97,501
98,777
98,780
97,450
185,860
183,140
183,997
179,598
180,158
177,043
175,291
174,767
172,357
164,089
106,982
107,190
106,874
107,276
106,761
9,343
9,459
9,426
9,395
9,497
149,799
148,525
145,972
145,683
143,528
66,446
66,010
66,466
65,820
65,227
366,496
366,750
367,441
367,040
364,103
2,138,540
2,127,612
2,121,943
2,110,705
2,095,297
173,864
172,481
172,491
171,452
172,037
463,686
460,502
457,752
453,461
450,864
133,274
133,742
134,723
135,007
134,114
234,791
230,649
231,226
227,520
229,125
248,709
246,715
245,983
244,780
235,688
144,395
144,507
143,703
143,876
142,891
9,914
10,015
10,020
10,001
10,109
188,809
187,927
184,563
184,403
182,556
82,982
82,122
82,334
81,965
82,173
458,116
458,952
459,148
458,240
455,740
216,948
217,748
218,311
218,127
217,370
15,479
15,977
15,835
15,910
15,852
65,023
65,359
65,766
66,495
66,735
14,592
14,597
14,713
14,630
14,667
27,257
27,904
27,856
28,023
27,996
21,621
21,705
21,741
21,672
21,647
12,639
12,379
12,680
12,708
12,625
714
714
714
714
712
12,545
12,348
12,328
11,809
11,732
12,378
12,384
11,749
11,688
11,539
34,700
34,381
34,929
34,478
33,865
50,608
50, 759
50,627
50,476
50,717
1,980
1,988
1,984
1,944
1,951
15,402
15, 549
15, 532
15,863
16,374
3,061
3,059
3,059
2,560
2,565
2,460
2,371
2,372
2,428
2,422
16,102
16,097
16,099
16,098
16,100
1,634
1,634
1,644
1,595
1,637
56
56
56
57
56
968
980
905
903
932
624
627
635
629
629
8,321
8,398
8,341
8.399
8,051
44, 577
43,596
37,632
35,819
47,229
1,918
1,731
1,566
990
1,818
14,125
13,246
11,107
9,109
12,692
2,440
2,179
1,652
868
3,027
1,858
1,826
1,701
1,607
2,009
9,576
9,287
7,760
7,519
12,249
998
1,566
451
343
446
10
10
10
10
10
3,820
3,740
3,789
3,770
4,318
631
631
681
681
731
9,201
9,380
8,915
10,922
9,929
582,995
585,634
590,815
587,557
586,873
76,978
77,033
76,862
76, 844
77,284
179,137
179,966
182, 892
181,602
180,269
21,531
21,842
21, 818
21, 863
22,371
28,826
28,805
29,392
28,669
29,068
154,537
154, 566
156,493
155,602
154,346
21,450
21,607
21,612
21,542
21,424
796
797
802
775
731
25,395
25,424
25, 566
25,659
26,217
3,225
3,231
3,336
3,271
3,397
71,120
72,363
72,042
71, 730
71,766
3,033,668
3,025,349
3,019,328
3,002,684
2, 997,486
270,219
269,210
268, 738
267,140
268, 942
737,373
734,622
733,049
726, 530
726, 934
174,898
175,419
175,965
174, 928
176, 744
295,192
291, 555
292,547
288,247
290,620
450, 545
448,370
448,076
445,671
440,030
181,116
181,693
180,090
180,064
179,023
11,490
11, 592
11,602
11, 557
11,618
231,537
230,419
227,151
226, 544
225,755
99,840
98, 995
98, 735
98,234
98,469
581,458
583,474
583,375
583,769
579,351
191,957
189,353
192,994
190,602
197, 591
17,903
17, 111
16,984
18,273
18,164
50,683
48,800
52,444
48,902
52,804
10,645
10,295
11,279
10,962
11,099
17,761
18,0.56
19,568
18,223
18,968
23,472
22,125
23,505
22,251
25,984
9,666
11,058
9,898
11,238
11,089
605
614
626
601
545
16, 761
14,920
16,009
16,195
15,331
6,802
7,388
6,743
7,130
7,052
37,659
35,938
36,827
36,555
61, 387
62,137
63,208
62,043
2,440
2,449
2,455
2,426
2,476
13,196
13,889
13,954
14,045
14,375
4,225
5,459
5,578
6,604
6,029
6,216
6,531
5,637
5,765
5,478
8,229
7,921
8,915
8,725
8,757
3,844
3,178
3,226
3,281
3,086
240
248
252
289
255
5,508
5,479
5,667
5,673
5,559
3,028
2,782
2,702
2,877
2,664
13,143
13,451
13, 751
13, 523
13,364
Foot notes on page 750.
750
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
PRINCIPAL RESOURCES AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES ON FRIDAY, APR. 22, AND ON
WEDNESDAYS FROM APR. 27 TO MAY 18, 1921—Continued.
3. MEMBER BANKS IN F E D E R A L R E S E R V E BRANCH CITIES—Continued.
[In thousands of dollars.]
Total.
Net demand deposits:
Apr. 22
Apr.27
May 4
May 11
May 18
Time deposits:
Apr. 22
Apr.27
May 4
May 11
,
May 18
Government deposits:
Apr.22
Apr.27
May4
May 11
May 18
Bills payable with Federal Reserve Bank:
Secured by United States Government obligations—
Apr.22
Apr.27
May 4
May 11
May 18
All other—
Apr.22
Apr.27
May4
May 11
May 18
Bills rediscounted with Federal Reserve
Bank:
Secured by United States Government obligations—
Apr. 22
Apr.27
May4
May 11
May 18
All o t h e r Apr. 22
Apr.27
May 4
May 11
May 18
Minne- Kansas Dallas
CleveNew
Richland
York
mond Atlanta4 Chicago5 St. Louis6 apolis
City
disdistrict.1 district.2 district.3 district. district. district. district.7 district.** trict. 9
466,920 98,812 150,031 155,884
461,016 100,555 149,286 160,454
463,653 100,373 147,322 161,060
456,740 99,306 149,347 170,751
467,139 99,387 147,520 171,573
117,482 21,381 83,841 210,778
117,910 21,344 83,356 210,331
118,072 21,412 85,919 212,331
118,687 21,592 87,518 211,901
117,739 21,600 87,532 212,223
1,594,953
1,592,454
1,591,947
1,602,759
1,604,564
153,380
155,290
155,844
156,388
155,428
913,299
911,842
915,840
917,401
916,749
69,786
68, 540
67, 535
67,480
67,369
33,323
33,316
29,693
24,477
35,560
2,499
2,499
2,137
1,689
1,922
18,418
18,493
15, 710
12,729
14,771
3,396
3,391
3,052
2,693
4,487
1,723
1,669
1,511
1,270
1,733
127,298
118,184
125,207
123,845
100,213
15, 573
14,167
14,422
14,956
15,297
27,519
26,005
32,565
35,577
13,692
10,395
9,835
7,836
8,797
22,605
21,715
19,890
18,850
19,858
183
325
135
232
1,093
1,257
778
845
1,143
5,058 140,252 60,207 279,012
4,946 138,372 60,556 276,917
4,827 140,124 60,050 272,850
4,826 140,958 59,967 276,978
4,808 138,045 58,918 275,922
51,200
51,072
50,988
51,502
51,404
3,161
3,163
3,176
3,174
3,173
1,471
1,522
1,347
1,138
72
122
122
122
122
5,807
3,753
4,819
4,574
5,465
62,032
62,440
62,266
62,246
62,439
137,677
134,125
129,737
116,336
112,952
16,727
16,878
15,470
14,244
16,069
5,563
5,545
5,585
5,632
5,617
1,906
2,007
1,768
1,442
1,792
4,691
3,814
3,844
4,111
3,574
5,113
5,016
4,821
4,831
2,807
1,573
1,574
1,485
1,326
1,238
12,823
12,812
10,747
10,200
13, 744
15,220
16,066
16,707
15,521
15,740
14,292
14,212
13,966
9,964
12,292
25,846
20,868
21,134
16,488
8,450
12,860
14,691
13,820
13,039
12,791
1 Buffalo.
Pittsburgh and Cincinnati.
Baltimore.
New Orleans, Jacksonville, Birmingham, and Nashville.
6 Detroit.
BANK DEBITS.
Debits to individual accounts are indicators
of the volume of the Nation's business and
are subject to fairly regular fluctuations on
alternate weeks, as the result of the larger
volume of transactions on weeks containing
the last day and the middle day of each month.
For this reason, general upward and downward tendencies are not easily apparent.
During the present year the first two months
showed an unmistakable seasonal downward
trend, reflecting the reaction after the increased volume of business caused by the
Christmas trade and end-of-year settlements.
For the week ending February 23 the low
!
j
i
!
470
656
663
655
745
270,192
269,399
269, 742
268,752
267,656
405
332
311
258
349
2,053
2,052
1,862
1,636
861
4,396
4,107
4,876
2,982
2,588
1,816
1,709
1,080
930
1,390
6,921
5,960
7,881
8,282
9,148
53
100
100
100
200
200
600
600
600
600
540
1,270
801
678
693
611
259
259
182
182
170
1,229
1,204
1,250
1,084
1,085
12,942
11,499
10, 585
9,425
9,353
5,239
4,421
4,374
4,071
3,791
45
931
931
915
922
858
23,446
24,287
24,399
24,549
i 25,614
157
157
1,143
1,126
1,374
75
350
2
8
4
32,194
30,811
30,556
29,736
23,856
85,397
85,062
85,844
87,498
85,824
78
20, 528
20,223
17,752
22,535
21,151
3,201 j
3,201 |
2,620 I
1,938 |
San
Francisco
district.^
21,258
22,022
22, 271
22, 729
19,977
« Louisville, Memphis, and Little Rock.
78 Helena.
Omaha, Denver, and Oklahoma City.
9
El Paso and Houston.
10
Spokane, Portland, Seattle, Salt Lake City, and Los Angeles.
figure of $6,481,000,000 is reported. The
month of March shows rather larger than
average fluctuations, apparently as a consequence of exceptionally heavy Government
operations in connection with the March 15
installment of income and excess profits taxes.
The last week in March saw the lowest volume
of debits for the year— $6,393,000,000. Since
that time the weekly alternations have continued, but each successive low has been
somewhat higher than its predecessor. Thus,
the low for April 27 was $6,910,000,000, while
the low for May 25 was $6,992,000,000. It
appears, therefore, that there is a slight but
unmistakable upward tendency in volume of
debits for the last two months.
JUNE, 1921.
751
FEDERAL RESERVE
DEBITS TO INDIVIDUAL ACCOUNTS
AT BANKS IN REPORTING CLEARING HOUSE CENTERS
—DEBITS FOR I9£O
DEBITS FOR 1921
K5
I
ii.000
10.000
9.000
-
i
4j
.**
\
\
\
\ /\
j
/
\
\
8.000
7.000
1
\
1
J
\ /// j
\
/ \ Ji > Js
f
\
l
1
/\
/
1
/\
/
\\
/ \V
\/ >
/
\^
V 1
y \
1
\ /
10.0001
\
\
/
/
V1
\
i
t'
/\
7000
6.000
/
\
rf
V-x
\
/
3.000
\
\
9.000
8.000
\ ii
1
V
4.000
*
/
1
6.0OQ
5.000
11.0001
1
1
1V
f
S.000
/s/ \ /
\ f
7\
\
s
**.
y
r
/ -
1
4.000
/
3.000
j
Z000
£000
I.OOO
1.000
0
AT
2
BANKS 11[ liZW
YORK CITY.
•3AN13
4:
BATiKS IN.AU REPORTING : E i r r E R S .
1
6.000
6.000
/
5.000
\
4.000
3.000
\
i \ /
\
\ (j s.
/ \ y
s s
—1
.-/
\
/
s
s \
\
•^» p *
>
\
\ /
—
'x
*
5.000
\
4.000
aooo
2.000
2000
1.000
1.000
0
BANKS
1920
192!
01J
-Ll I M 1 1 M . L J _ L J ~ n I T1 I I T
7 14 21 28 4 II f8 25 3 10 !7 24 31 7 14 21 28 5 12 19 26 2
S 12 19 26 2 9 16 23 2 9 16 23 30 6 13 20 27 4 II 18 25 J
JAN.
MAY
|
FEB. 1 MAR. | APR.
"SIDE 0 HI
Comparison of the movement of debits for
the five weeks under review with that for the
corresponding period of 1920 shows that the
general fluctuations for the two years have
been substantially parallel, although this
year's fluctuations were considerably more
pronounced than last year's. The average
volume of debits for the most recent five weeks
was about 19 per cent below the average
fORK CITY.
I 1 I T T I I I I I T1 I T T1 M I I I 1
9 16 23 30 7 14 21 28 4 II 18 25 I 8 15 22 29 6 13 20 27 3
8 15 22 29 6 13 20 27 3 10 17 24 31 7 14 21 28 S IZ 19 26 2
JUNE 1 JULT
SEPT, 1 OCT. 1
1 1 1 1 M M
10 17 24 I 8 15 22 29 1920
9 16 23 30 7 14 21 28 1921
NOVr
DEC.
amount for the corresponding period in 1920.
This lag compares favorably with the 25 per
cent difference reported for the previous four
weeks. For New York City, which showed a
reduction in the volume of debits earlier last
year than did the rest of the country, this
year's weekly figures are only 16 per cent
below those of last year.
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
DEBITS TO INDIVIDUAL ACCOUNTS AT CLEARING-HOUSE BANKS.
SUMMARY BY F E D E R A L RESERVE DISTRICTS.
[In thousands of dollars.]
1920
Week ending-
1921
Week e n d i n g Federal Reserve District. Number of
centers
in'luded
337,968
3,633,454
341,057
406,658
132,372
159,207
844, 806
152,462
115,830
219,511
114,531
451, 77/
Boston
,
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..,
Kansas City...
Dallas
San Francisco,
Total....
Apr. 27.
153
May 4.
May 11.
May 18.
381,326
371,723
423,147
4,383,619 3,951,005 4,769,214
367,029
325,921
385,837
427,353
402,237
446,548
162, 862
142,062
153,400
197,860
171,501
176,474
999,977
831,682
964,083
175,512
166,109
194,058
132,247
126,236
134,627
244,968
228,331
237,441
127,931
132,142
134,802
475,472
433,364
477,283
3,909,633 8,076,156
7,287,313 8,496,914
May 25.
Apr. 28.
May 5.
May 12.
350,134
480,497
472,584
501,830
3,728,729 5,153,062 4,999,839 4,821,757
357,572
416,566
432,265
446,447
382,354
511, 733
501,336
501,268
143, 785
179,923
207,042
176,976
152,659
246,772
268,163
247,556
841,068 1,046,472 1,241,943 1,083,794
163,684
215,947
237,628
227, 757
115,594
160,176
175,529
166,734
21i;975
299,232
323,271
321,630
125,420
155,499
148,501
153,410
419,245
523,460
519, 663
568,450
6,992,219
9,381,426
9,535,677
9,217,609
May 19.
May 26.
510,452
4,675,732
445,657
527,157
198,090
261,786
1,195,120
253,885
174,542
332,797
164,738
553,546
482,595
4,830,296
371,444
523,281
179,012
248,581
1,093,954
223,657
169,730
306,249
153,389
529,325
9,293,502
9,111,513
NOTE.—Figures for the following centers, while shown in the body of the statement, are not included in the summary, complete data for these
centers not being available for each week under review: Harrisburg, Pa.; Johnstown, Pa.; Reading, Pa.; Cincinnati, Ohio; Greenville, S. C ; Huntington, W. Va.; Washington, D. C ; Wilmington, N. C ; Moline, 111.; Springfield, 111.; East St. Louis and National Stock Yards, 111.; Quincy,IlL;
Springfield, Mo.; Atchison, Kans.
DATA FOR EACH REPORTING CENTER.
[In thousands of dollars.]
1921
Week e n d i n g Apr. 27.
May 4.
May 11.
May 18.
1920
Week ending—
May 25,
Apr. 28.
May 5.
May 12.
May 19.
May 26.
Distrlet No. 1—Boston:
3,221
4,113
3,413
3,415
3,668
5,310
3,617
3,591
3,837
Bangor
3,530
302,232
1 210,361 1 241,160 1 238, S90 1 277,142 1 221,989
297,204
318, 040
320,228
310,634
Boston
314,500
285,907
309,765
278,715
350, 881
Boston
5,582
5,464
5,654
5,411
5,367
11,231
9,315
Fall River
10,064
11,633
10, 298
22, 818
22,128
19, 289
18,167
22, 547
22,628
18, 820
24,509
27,125
29,768
Hartford
2, 803
2,897
2,847
2,933
4,490
4,786
2,780
4,835
4,358
4,113
Holyoke
5,380
4,278
4,336
4,366
6, 248
6,217
4,227
7,022
5,896
6,297
Lowell
4,842
3,978
4,465
4,283
4,879
4,677
3,918
5,194
5,008
5,055
Manchester
6,686
5,395
5,327
5,156
9,211
9,108
5,179
11,430
8,416
9,710
New Bedford
17.532
18,411
16, 544
14, 356
18,786
17,506
15,547
20,337
20,916
21,121
New Haven
7,726
7,824
7,140
7,171
8,003
9,588
6,297
8,694
8,833
8,411
Portland
34,486
31,937
31,181
29, 285
40, 068
38,163
29,040
45,762
43,224
40,429
Providence
13,656
12,835
12,769
12,821
17,041
16,871
11,949
19,966
17,266
15,397
Springfield
5,550
6,447
5,430
5,478
7,187
6,907
5,858
8,771
7,327
7,203
Waterbury
15, 700
14,341
14,373
14,524
18,740
15,942
21,991
19,674
19,276
20,209
Worcester
District No. 2—New York:
30,081
25, 561
48,339
38,997
33,128
33,116
24, 858
22,058
36, 897
28,623
Albany
3,691
4,292
3,871
3,427
4,143
3,723
4,908
4,613
4,836
4,884
Binghamton
53, 446
60,007
52,261
61,621
54,741
72,054
61, 824
69,781
68, 499
75,224
Buffalo
3,499,083 4,230,772 3, 819, 830 4,605,558 3,591,329 5,008,128 4,830,094 4,666,599 4,515,498 4,670,039
New York
5,023
4,390
5,009
5,479
4,619
5,583
5,934
4,940
Passaic
6,207
5,652
25,025
30,146
29,148
34,662
29,392
27,138
Rochester
35,298
31,221
30,788
31,969
12,017
13,909
14,817
14.533
14, 063
16,684
18, 852
16,348
19,709
Syracuse
17,718
District No. 3—Philadelphia:
3,111
3,325
2,896
3,524
3,692
3,100
Altoona
3,291
3,485
3,685
3,400
3,927
4,734
4,398
4,792
3,812
5,303
Chester
5,705
5,708
5,375
5,688
5,945
6,763
5,817
6,545
6,174
Harrisburg
5,095
5,781
5,160
4,649
4,811
Johnstown
4,634
5,314
4,579
5,071
4, 233
Lancaster
5,381
5,952
5,840
5,902
5,488
280, 751
304,528
263,674
320, 858
297,731
365,058
Philadelphia
350,597
377,033
378,693
302,329
6,526
6,101
8,920
9,214
Reading
16,663
12,592
17,267
17,134
13,613
Scranton
12,992
15,645
16,362
12,514
16,237
10,203
11,500
10,234
9,531
11,500
13,303
Trenton
'.
11, 341
12,269
14,176
12,695
8,309
9,322
8,001
7,830
9,352
9,393
Wilkes-Barre
8,034
8,311
8,140
8,945
3,649
4,130
4,053
3,988
4,148
4,105
3,938
4,352
3,609
Williamsport
3,978
6,006
7,512
7,264
6,314
8,328
8,378
Wilmington
8,474
7,888
8,256
3,804
4,072
3,555
3,899
4,247
4,601
4,926
4,724
4,327
York
4,746
District No. 4—Cleveland:
16,534
12,390
16, 879
Akron
23,127
32,752
13,140
23,161
30,717
29,968
56,392
53, 093
56,600
66,560
Cincinnati
54,937
125,837
117,046
133, 788
164,926
137,134
150,646
108,757
176, 820
Cleveland
159,309
163,149
28,172
27, 315
25, 469
26, 737
27, 806
27,732
26,264
Columbus
29,388
26,722
26,155
11, 843
12,837
11,955
12,425
11,979
Dayton
11,672
11, 524
12,135
12,286
11,852
5,926
6,429
6,035
9,232
6,459
7,137
6,207
8,064
Erie
7,732
7,687
3,664
4,085
3,316
4,503
4,407
5,195
3,732
Greensburg
5,317
3,710
4,635
3,614
4,228
5,511
3,768
3,884
5,423
5,209
3,093
Lexington
5,496
4,607
1 Debits of banks which submitted reports in 1920.
753
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
DEBITS TO INDIVIDUAL ACCOUNTS AT CLEARING-HOUSE BANKS—Continued.
DATA FOR EACH REPORTING CENTER—Continued.
[In thousands of dollars.]
1920
Week ending-
1921
Week e n d i n g Apr. 27.
May 4.
May 11.
District No. 4—Cleveland—Con.
Oil City
2,724
2,544
2,328
Pittsburgh
177,273
158,775
170,456
Springfield
3,588
3,832
3,939
Toledo
22,451
26, 813
27,269
Wheeling
6,957
7,399
8,015
Youngstown
10,395
10,568
9,676
District No. 5—Richmond:
78,818
99,716
86,387
Baltimore
6,784
7,120
5,468
Charleston
4,991
6,664
5,067
Charlotte
5,319
5,551
4,979
Columbia
2,614
3,171
3,049
Greenville, S. C
4,386
5,234
5,315
Huntington
11,684
Norfolk
12,190
13,199
3,800
Raleigh
4,400
4,300
20,976
Richmond
26,312
23,571
Washington
33,258
36,781
37,918
Wilmington
6,704
4,855
3,975
District No. 6—Atlanta:
19,232
25,531
Atlanta
22,864
4,464
Augusta
6,186
4,045
12,214
Birmingham
12,771
15,858
7,717
Chattanooga
8,791
10,942
11,722
Jacksonville
9,375
6,276
6,595
Knoxville
5,560
3,902
4,419
Macon
3,374
5,972
6,706
Mobile
5,202
5,442
3,706
Montgomery
2,888
Nashville
18,588
20,552
20,306
55,430
New Orleans
67,436
51,531
1,203
Pensacola
1,446
1,540
8,503
Savannah
10,005
11,334
5,176
Tampa
6,676
6,346
1,114
Vicksburg..
1,360
1,384
District No. 7—Chicago:
2,332
Bay City
2,216
2,600
2,014
Bloomington
2,031
2,529
9,075
Cedar Rapids
9,532
10,248
554,101
549,396
Chicago
676,265
7,163
7,634
7,286
Davenport
2,660
3,382
2,970
Decatur
18,773
16,595
Des Moines
16,613
103,464
82,556
115,769
Detroit
2,769
3,027
2,915
Dubuque
4,294
5,425
4,359
Flint
6,186
6,874
6,657
Fort Wayne
16,672
Grand Rapids
17,798
18,655
33,483
29,016
Indianapolis
31,545
3,064
3,451
3,892
Jackson
3,476
3,801
4,333
Kalamazoo
5,832
5,213
5,018
Lansing..
46,192
53,122
49,517
Milwaukee..".".'.'..'..'.'.'.'.'.'..'.'.
2,018
2,303
2,052
Moline
7,159
9,790
Peoria
4,077
5,113
5,587
Rockford
8,617
9,161
8,234
Sioux City
5,299
5,946
6,676
South Bend
5,206
5,805
5,249
Springfield, 111
3,236
2,841
2,451
Waterloo
District No. 8—St. Louis:
East St. Louis and National
8,201
9,060
8,740
Stock Yards
4,335
4,550
4,764
Evansville
7,907
8,688
9,554
Little Rock
120,413
122,277
122,785
Louisville
26,538
28,582
29,752
Louisville
17,113
22,168
21,497
Memphis
1,878
2:627
2,523
Quincy
1102,694
1117,829
1107,509
St. Louis
115,386
131,280
120,871
St. Louis
2,238
2,525
2,670
Springfield, Mo
District No. 9—Minneapolis:
1,237
1,312
1,376
Aberdeen
1,508
1,788
1,823
Billings
14,574
16,873
16,480
Duluth
2,437
2,837
2,606
Fargo
989
1,146
1,286
Grand Forks
1,627
1,646
1,613
Great Falls
1,592
2,072
2,051
Helena
58,256
68,130
63,700
Minneapolis
30,054
24,699
29,448
St. Paul
3,672
4,615
3,900
Sioux Falls
1,973
2,130
1,829
Superior
967
1,034
1,033
Winona
i Debits of banks which submitted reports in 1920.
May 18.
May 25,
Apr. 28.
May 5.
May 12.
2,597
186,620
3,568
25,764
8,567
11, 492
2,208
163,916
4,051
23,510
6,963
2,925
217,975
3,561
31,769
10,339
14,232
3,634
194,905
3,059
30,926
8,852
13,465
3,223
193,550
3,645
33,264
95,458
5,151
5,851
5,361
3,363
5,042
90,333
5,243
5,227
4,893
2,881
4,750
101,380
10,755
9,225
6,338
115,737
11,706
8,513
8,248
13,148
4,250
24,181
37,704
4,646
12,723
3,950
21,416
34,492
4,184
13,565
4,430
34,230
21,246
4,457
12,135
6,906
4,961
15.313
8,390
11,230
5,729
3,776
5,785
3,464
19,335
53,637
1,976
9,851
5,736
1,222
2,475
2,002
10,396
4,614
3,569
5,388
2,952
18,558
1,331
8,538
4,474
997
56,304
2,278*
8,515
4,946
7,943
7,287
5,367
2,791
2,139
1,913
7,797
547,973
6,551
3,009
14,018
108,291
4,299
5,326
6,494
19,068
28,970
3,943
4,054
4,540
46,294
1,803
7,084
4,385
7,635
5,451
5,311
1,834
9,425
5,525
8,970
126,184
33,646
21,964
2,153
1131,415
145,768
2,756
7,462
4,854
7,863
i22,562
29,200
17,535
2,065
1110,870
122,725
2,539
1,454
1,793
15,754
2,824
1,055
1,753
2,018
71,831
29,113
4,200
2,056
776
1,327
1,722
14,466
2,267
979
1,545
1,558
60,568
24,408
3,745
1,837
1,172
5,903
2,983
16,727
163,448
2,825
5,170
7,154
18,653
32,488
3,347
4,482
4,876
May 19.
May 26.
13,524
3,267
186,193
3,207
44,777
7,982
12,046
2,813
215,482
3,393
30,529
8,338
13,924
102,794
11,300
9,050
7,520
113,920
11,980
10,510
8,832
102,873
9,975
9,584
8,553
22,134
3,800
36,904
18,113
4,700
23,499
20,091
4,800
27,957
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
30,569
9,936
17,836
11,900
14,175
6,484
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
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
3,181
2,620
8,114
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
7,298
74,400
3,529
2,738
7,639
711,303
8,253
4,103
19,181
136,126
3,358
7,901
7,813
22,179
37,241
3,401
5,153
6,865
63,649
9,847
6,462
17,866
11,653
7,281
19,082
4,782
11,337
18,961
5,528
11,324
6,391
17,698
5,739
10,685
6,242
16,302
6,327
4,160
4,979
4,512
4,371
3,966
5,712
8,614
31,756
5,568
10,902
36,560
6,055
10,274
36,321
5,616
10,447
36,465
5,090
7,973
34,699
685,225
7,154
3,861
23,688
134,229
3,936
9,322
21,910
41,920
4,720
5,017
6,506
67,352
5,648
20,663
3,500
5,000
27,803
81,816
2,236
16,368
5,813
1,496
31,988
30,983
33,070
34,504
29,651
'137,'877
i53,*6i5
"142,037
"i66,*853
"i46,"244
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
1,643
2,237
22,758
3,533
1,772
2,142
2,025
90,065
33,882
6,488
2,077
1,108
754
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
DEBITS TO INDIVIDUAL ACCOUNTS AT CLEARING-HOUSE BANKS-Continued.
DATA FOR EACH REPORTING CENTER—Continued.
[In thousands of dollars.]
1921
Week endingApr. 27.
District No. 10 -Kansas City:
Atchison
Bartlesville
Cheyenne
Colorado Springs
Denver
Joplin
Kansas City, Kans
Kansas City, Mo
Muskogee
Oklahoma City
Omaha
Pueblo
St. Joseph
Topeka
Tulsa...
Wichita
District No. 11—Dallas:
Albuquerque
Austin
Beaumont
Dallas
El Paso
Fort Worth
Galveston
Houston
San Antonio
Shreveport
Texarkana, Tex
Tucson
Waco
District 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 4.
May 11.
1920
Week ending-
May 18.
May 25.
Apr. 28.
May 5.
May 12.
May 19.
900
2,160
1,307
2,164
34,695
1,831
3,066
64,476
3,801
18,246
37,739
3,786
14,608
3,602
19,008
9,022
1,093
2,384
2,048
2,695
36,375
1,962
3,417
74,953
3,671
19,933
39,866
4,105
18,389
3,887
20,925
10,358
1,177
2,060
2.004
2' 447
29,942
1,999
3,387
66,827
4,109
21,156
42,221
4,239
14,630
3,802
20,549
1,133
2,467
1,634
2,274
31,700
2,083
3,433
73,636
4,501
19,197
42,814
3,969
14,976
2,794
22,172
9,791
1,060
1,963
1,397
2,513
31,602
1,964
3,230
66,345
3,836
17,228
37,333
2,712
13,263
2,613
16,473
9,503
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
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
4,950
1,852
3,684
45,882
4,165
3,543
89,362
4 p»99
26^265
60,218
4,501
23,885
5,723
28,575
14,426
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
990
2,007
2,690
29,576
6,708
15,530
17,892
22,109
5,792
5,902
1,125
1,167
3,043
979
2,742
2,784
33,243
8,175
19,220
16,853
25,305
6,088
7,062
1,366
1,246
2,868
874
3,491
3,415
32,027
7,622
17,650
22,757
23,931
6,583
7,146
1,504
1,935
3,207
1,619
2,759
3,125
35,394
7,926
18,410
18, 732
24,795
7,031
7,827
2,003
1,907
3,274
1,505
2,969
2,841
29,726
8,644
18,940
17, 776
23,248
6,51*3
6,875
1,281
1,916
3,183
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
7,988
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
2,478
2,063
8,559
5,404
101,086
17,672
2,872
5,251
37,761
2,200
10,993
15,571
7,383
172,231
6,620
28,848
8,982
4,293
9,326
2,184
3,529
2,493
8,670
5,767
101,590
18,651
3,580
5,405
35,392
2,323
18,952
13,828
7,818
186,017
4,700
31,910
9,846
4,601
8,133
2,267
3,707
2,638
9,851
5,267
95,721
22,171
2,854
5,524
32,739
2,528
12,621
12,876
8,207
161,859
4,178
30,775
9,669
4,635
8,502
2,042
3,177
2,410
9,791
5,640
99,070
19,766
2,810
5,510
34,783
2,694
10,950
12,843
8,639
195,622
4,352
32,447
11,181
4,478
8,902
2,218
2,519
1,970
8,749
4,631
90,619
18,108
3,076
4,713
30,819
2,507
10,245
9,573
6,641
167,834
3,905
28,777
9,973
4,153
8,544
1,889
2,408
2,474
8,816
5,287
98,079
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
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
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
10,151
2,525
2,130
4,365
52, 707
14,217
5,719
13,047
3,411
May 26.
4,288
1,705
3,053
44,667
3,846
3,932
91,738
5,536
23,818
56,012
3,819
20,388
5,481
26,898
11,068
1,654
3,079
4,467
37,704
11,915
24,868
8,604
33,430
8,409
11,755
2,040
1,814
3,650
2,483
3,699
12,485
4,015
96,272
20,477
4,411
5,520
41,029
2,467
11,149
17,110
9,129
216,133
5,034
45,855
12,462
5,202
11,329
3,064
755
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
FEDERAL RESERVE CLEARING SYSTEM.
OPERATIONS FROM APR. 16 TO MAY 15, 1921.
[All figures shown in thousands.]
Items drawn on banks located in
own district.
Federal Reserve
Bank or branch.
In Federal Reserve Bank or
branch city.
Number. Amount.
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
Helena
Kansas City
Denver
Oklahoma C i t y . . .
Omaha
Dallas
El Paso
Houston
San Francisco
Los Angeles
Portland
Salt Lake C i t y . . . .
Seattle
Spokane
Total:
Apr. 16 to May 15,
1921
Mar. 16 t o Apr. 15,
1921
.
A p r . 16 t o May 15,
1920
1
652
1,256
178
1,533
326
172
413
104
221
95
258
52
49
57
726
234
223
40
86
61
241
32
209
73
56
87
134
35
54
182
288
54
43
120
34
505,811
1,567,404
77,761
670,067
179,292
110,594
234,870
106,249
138,130
49,753
33,372
19,466
26,724
42,425
518,407
130,740
172,350
19,716
52,699
21,795
103,037
7,863
225,862
38,844
49,922
46,211
50,616
33,439
93,752
111,022
28,120
21,060
32,833
16,361
Items forItems forItems drawn
Total items
warded to other warded to parTotal items
on Treasurer of handled, exclusive Federal Reserve ent bank or
handled, includOutside Federal United States. of duplications. Banks and their to branch in ing duplications.
same district.
Reserve Bank
branches.
or branch city.
NumNumNumber. Amount. ber. Amount. ber.
3,108
4,148
372
1,958
1,034
727
778
1,720
635
298
124
149
181
99
3,234
384
1,202
251
381
142
1,278
180
2,170
291
835
506
1,438
117
286
456
804
182
351
207
155
350,289
150
905,413 1,092
44,844
15
211,262
235
86
130,054
77
67,102
57
87,696
60
223,893
65
66,991
36
37,441
13
6,973
11
16,778
20
19,115
38|
11,002
291,835
486
37,937
38
75,600
173|
15,302
9
21,750
45
8,122
11
73,868
55
11,393
90,041
16,128
69,430
32,316
162,789
9,401
29,195
30,976
65,553
10,749
26,957
15,142
9,182
19,629
170,947
2,188
53,070
6,304
7,890
12,571
8,147
8,874
4,243
1,196
1,196
1,752
6,829
58,528
4,454
11,613
1,184
3,871
1,301
4,621
717
7,209
4,009
1,294
2,562
3,310
2 167
2,102
51,653
9,338
4,074
2,187
6,822
1,756
3,910
6,496
565
3,726
1,446
1983
1,248
1,884
921
429
395
212
250
194
4,446
656
1,598
300
512
214
1,574
218
2,475
387
900
1648
1,601
171
396
713
1,125
255
407
350
199
Amount.
NumNumNumber. Amount. ber. Amount. ber.
875,729
2,643,764
124,793
934,399
315,650
1186,897
335,137
338,289
213,995
91,437
41,541
37,440
47,591
60,256
868,770
173,131
259,563
36,202
78,320
31,218
181,526
19,973
323,112
58,981
120,646
181,473
216,715
20,256
64,736
176,381
185,893
42,943
50,204
54,797
27,299
143
1,015
148
667
32
11
62
135
50
28
14
23
30
37
268
7
24
2
173
5
44,590
455,720
25,584
150,544
17,527
12,622
35,956
48,505
22,887
13,185
7,436
8,728
3,985
10,646
28,431
3,708
4,212
1,107
1,127
551
31,225
1,851
35,947
12,918
7,900
5,350
13,550
3,465
4,017
3,619
13,089
1,451
10,765
4,819
1,551
5
7
4
8
21
3
2
5
3
70
40
13!
17
41
4
6
39
47
28
10
30
15
729
8,378
5,545,255 30,1813,282,519
3,238
141,804 19,319,057
3, 5241,,048,568
9,967
6,382,199 33,7013,746,158
3,085
600,167 46,751 110,724,392
3, 9411,,247,842
7,288
7,669,914 27,193 4,669,179
2,689
479,638 137, 176U4,559,731
3,252
Amount.
4,053
920,319
7,532 3,105,804
750
169,048
4,1
1,084,943
1,505
342,731
1,004
202,965
1,337
375,780
2,063
396,520
1,040
245,042
492
109,723
435
63,753
241
48,116
289
52,494
236
71,463
4,721
898,821
667
177,997
1,630
264,460
327
39,486
523
79,750
218
32,032
1,752
213,056
226
23,702
2,781
371,276
495
83,948
953
136,256
704
91,392
1,712
234,654
185
24,402
422
70,215
778
185,090
1,258
209,734
287
48,049
429
67,952
396
64,144
223
33,365
6,320
18,671
9,554
3,446
4,687
9,726
8,160
5,101
14,776
1,948
918
561
1,620
1,158
685
2,177
303
263
305
1,878
12,217
12,049
7,710
4,569
4,389
681
1,462
5,090
10,752
3,655
6,983
4,528
4,515
170,857 46,057 10,538,482
229,941 51,59012,:, 202,175
717
742,960
234,308 41,145 15,i,536,999
Includes items drawn on banks in other Federal Reserve districts forwarded direct to drawee bank.
NOTE.—Number of business days in period for Boston, Birmingham, Atlanta, Omaha, Dallas, El Paso, and Houston was 24, for other Federal
Reserve Bank and branch cities, 25 days.
NUMBER OF MEMBER AND NONMEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT, MAY 15, 1921 AND 1920.
Nonmember banks.
Member banks.
1921
1920
1921
Boston
New York... .
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago .
St. Louis.. . .
Minneap olis
Kansas City
Dallas
San Francisco.
Total
i Incorporated banks other than mutual savings banks.
Not on par list.1
On par lis t.
Federal Reserve district.
1920
437
790
700
877
617
489
1,430
580
1,013
1,092
861
861
432
772
687
858
598
435
1,386
559
954
1,057
786
779
255
329
455
1,083
1,038
407
4,263
2,516
2,794
3,411
1,236
994
254
321
422
1,078
766
444
4,235
2,513
2,913
3,374
1,241
941
9,747
9,303
18,781
18,502
1921
1920
551
1,163
770
1,135
168
55
173
1,937
2,180
102
756
FEDERAL RESERVE BULLETIN.
GOLD SETTLEMENT FUND.
Continued reduction in the volume of clearings and transfers through the gold fund is
noted for the three months ending May 19,
1921. Figures of daily clearings for the period
under review aggregated $16,353,275,732, compared with $18,134,804,741 for the previous
quarter, and were the smallest for any threemonth period since that ending in May, 1919.
The decrease of nearly 10 per cent from figures
shown for the immediately preceding quarter,
compared with an increase of about 6 per cent
in the corresponding period for a year ago, is
doubtless a reflection of the lower price level
upon which the business of the country is
being conducted and in some measure of a
reduction in the volume of business.
Interbank transfers declined relatively much
more heavily, from $1,418,949,549 to $512,012,038, or by 64 per cent, the current figures
of transfers being the smallest recorded in any
quarter since that ending in May, 1917. This
reduction is due primarily to the continued
improvement in the reserve position of the
various Federal Reserve Banks, resulting in a
marked reduction in the amount of interbank
discounting.
The Federal Reserve Banks deposited $300,102,000 net of gold in the fund between February 18 and May 19, and during the same
time made net transfers of $349,036,000 to
the Federal Reserve agents' fund, the banks'
fund thus showing a decrease of approximately
$50,000,000, or from $505,901,000 to $456,967,000. The balance in the agents' fund increased by over $145,000,000, from $904,682,000 to $1,050,618,000, net transfers from
the bank of $349,036,000 being partially offset
by net withdrawals of $203,100,000 from this
fund. At the close of business on May 19 the
combined balances in the two funds stood at
$1,507,585,000, the net addition to the funds
JUNE, 1921.
during the three-month period amounting to
$97,002,000.
The Federal Reserve Bank of New York
gained $153,024,000 through interbank transfers and lost $171,274,000 through settlements,
the result being a net loss during the threemonth period of $18,250,000. The Federal
Reserve Banks of Philadelphia, Richmond, St.
Louis, Dallas, and San Francisco also show
losses during the period under review, while
the remaining six banks show gains.
Following are figures showing operations
through the two funds from February 18 to
May 19, inclusive:
CLEARINGS AND TRANSFERS THROUGH THE GOLD SETTLEMENT FUND, FROM F E B . 18 TO MAY 19, 1921, INCLUSIVE.
Transfers.
Clearings.
Settlements of—
Feb. 18-24
Feb. 25-Mar. 3
Mar. 4-10
Mar. 11-17
Mar. 18-24
Mar.25-31
Apr. 1-7
Apr. 8-14
Apr. 15-21
Apr. 22-28
Apr. 29-May 5
May 6-12
May 13-19
$1,161,428,346.93
1,335,484,442.55
1,257,027,764.98
1,385,235,075.65
1,337,704,056.37
1,156,322,184.89
1,227,664,758.47
1,215,077,581.76
1,323,229,247.34
1,231,352,365.47
1,228,156,578.44
1,174,392,831.03
1,320,200,498.48
$25,806,278.33
34,788,193.31
35,436,882.19
15,559,326.20
103,332,579.51
54,868,086.12
31,248,874.5Q
29,792, 760.79
38,837,067.72
33,707,831.22
41,834,307.17
41,806,073.46
24,993,776.98
16,353,275,732.36
8,951,655,082.50
512,012,037.59
481,151,239.34
Total
Previously reported for 1921
Total since Jan. 1,1921
25,304,930,814.86
993,163,276.93
Total for 1920
Total for 1919
Totalforl918
Total for 1917
85,074,217,886.97
66,053,394,214.47
45,439,487,000.00
24,319,200,000.00
7,551,584,236.15
7,930,857,773.95
4,812,105,000.00
2,835,504,000.00
CLEARINGS AND TRANSFERS COMBINED.
Total for
Total for
Total for
Total for
Total for
Total for
Total for
1921, to date
1920
1919
1918
1917
1916
1915
$26,298,094,091.79
92,625,802,123.12
73,984,251,988.42
50,251,592,000.00
27,154,704,000.00
5,533,966,000.00
1,052,649,000.00
Total clearings and transfers from May 20,1915,
to May 20,1921
276,901,059,203.33
757
FEDERAL, RESERVE BULLETIN.
JUNE, 1921.
INTER-FEDERAL RESERVE BANK CHANGES IN OWNERSHIP OF GOLD.
Total to Feb. 18,1921.
F r o m F e b . 18 to May 19,1921, inclusive.
Federal Reserve
Bank of—
Decrease.
Boston
New York
$1,275,878,783.82
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
9,375,848.13
Kansas City
Dallas
San Francisco...
L- J
Total
1
Balance to
credit, Feb.
17,1921, plus
net deposits
of gold since
that date.
Increase.
Balance,
May 19,1921.
Decrease.
Increase.
Total changes from May 20,
1915, to May 20, 1921.
Decrease.
Increase.
$150,170,569.09
$23,739,455.44
$126,431,113.65 $11,848,655.60 $35,588,111.04
$1,294,128,553.84
64,652,990.25 46,403,220.23 $18,1,249,770.02
52,829,660.21 41,694,496.75 11,135,163.46
"*75,"i7i,"385."37
335,947,334.61
68,478,404.01 76,318,809. 53
7,840,405.52
53,859,230.59 21,182,176.52 32,677,054.07
13,085,295.57
17,474,831.54 15,196,750.34
68,462,546.13
22,671,581.88
82,138,432.51 112,296,226.48
123,035,873.77
30,157,793.97
22,208,969.02 16,545,157.84 5,"663*8ii."i8
98,376,632.21
4,887,112.96 10,025,928.50
" 5* 138,815.* 54
4,237,032.59
45,592,887.87
"**43,'258,*952.*8i 31,999,671.23 34,333,606.29
2,333,935,06
10,391,551.33
5,181,958.69 8,855,840.68
19,247,392.01 14,037,799.37
404,302,101.62
419,602,449.62 57,501,020.95 42,200,672.95 15,300,348.00
"**86,*306,*548*83
328,106,929.09
19,591,758.50
45,790,964.25
92,878,079.80
104,040,443.39
1,285,254,631.95 1,285,254,631.95 456,967,115.16 456,967,115.16 91,881,987.41 91,881,987.41 1,311,450,882.00 1,311,450,882.00
Excess of withdrawals over balance F e b . 17,1921, a n d deposits since t h a t date.
GOLD WITHDRAWALS AND DEPOSITS, ALSO TRANSFERS AND CLEARINGS, FROM FEB. 18 TO MAY 19, 1921, INCLUSIVE.
FEDERAL RESERVE BANKS' FUND.
Federal Reserve Bank
of—
Balance last
statement
Feb. 17,1921.
Aggregate
Aggregate
withdrawals a n d deposits a n d
transfers from
transfers t o
agent's fund.
agent's fund.
Gold
deposits.-
Gold
withdrawals.
Interbank transfers.
Debits.
Credits.
Boston
New York
Philadelphia.
Cleveland
Richmond
Atlanta
Chicago
St. Louis
,
Minneapolis..
Kansas City..
Dallas
San Francisco.
$49,460,108.70
59,926,456.93
42,294,402.97
96,814,574.89
27,238,600.52
9,196,706.80
116,398,668.65
23,798,829.39
7,648,852.45
33,325,966.94
7,735,220.43
32,062,462.07
$8,824,253.10
39,431,023.36
11,750,392.76
22,940,348.32
11,654,259.93
8,676,133.34
13,797,568.34
7,600,523.53
8,268,239.49
8,836,552.38
12,595,621.06
11,946,951.29
$1,212,800.00
139,157,556.68
81,285,650.00
9,604,177.44
40,774,890.00
43,904,595.00
44,537,332.20
12,010,663.16
1 506,500.00
11,510,256.67
16,898,200.00
64,021,010.17
$48,824,253.10
189,431,023.36
115,750,392.76
37,940,348.32
14,154,259.93
62,076,133.34
78,797,568.34
23,600,523.53
8,268,239.49
14,836,552.38
12,595,621.06
69,946,951.29
$11,212,800.00
194,157,556.68
126,285,650.00
9,604,177.44
40,774,890.00
45,404,595.00
44,537,332.20
22,010,663.16
5,506,500.00
13,510,256.67
18,898,200.00
95,385,510.17
$77,500, 000.00
65,000, 937. 50
20,000, 000.00
123,000, 000.00
38,114, 319. 74
6,509, 000. 00
57,500, 000.00
12,500, 000.00
12,410, 609.56
15,000, 000.00
84,4863 170. 79
$9,241,080.24
218,024,929.30
14,500,937.50
78,745,090.55
60,000,000.00
4,500,000.00
7,000,000.00
5,500,000.00
11,000,000.00
6,000,000.00
83,500,000.00
14,000,000.00
Total...
505,900,850.74
166,321,866.90
466,423,631.32
676,221,866.90
627,288,131.32
512,012,037.59
512,012,037.59
Settlements from Feb. 18,1921, to May 19,1921, inclusive.
Federal Reserve Bank of—
Net debits.
Boston
N e w York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
Total debits.
$1,173,056,725.20
4,615,572,300.62
1,657,743,002.06
,
,. . , . .
I 1,348,839,049.60
54,562,734.33 I 1,452,019,519.83
517,099,924.90
"
~"
2,091,607,626.75
1,134,757,263.07
331,917,253.60
916,155,519.74
508,970,779.04
7,869,669.89
605,536,767.95
29,300,348.00
$171,273,761.82
5,636,100.96
_,
,
I
I
!
268,642,615.00
16,353,275,732.36
Total credits.
Net credits,
$1,265,055,100.40
4,444,298,538.80
1,652,106,901.10
1,400,934,364.57
1,397,456,785.50
541,771,506.78
2,172,265,420.72
1,136,093,451.89
338,466,678.70
927,489,454.80
501,101,109.15
576,236,419.95
$91,998,375.20
16,353,275,732.36
268,642,615.00
52* 695*314." 97'
24,671,581.88
80,657,793.97
1,336,188.82
6,549,425.10
11,333,935.06
Balance i n
fund a t close
of business
May 19,1921.
$35,588,111.04
46,403,220.23
41,694,496.75
76,318,809.53
21,182,176.52
15,196,750.34
112,296,226.48
16,545,157. 84
10,025,928.50
34,333,606.29
5,181,958.69
42,200,672.95
456,967,115.16
758
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
GOLD WITHDRAWALS AND DEPOSITS, ALSO TRANSFERS AND CLEARINGS, FROM FEB. 18 TO MAY 19, 1921, INCLUSIVE—
Continued.
F E D E R A L RESERVE AGENTS' FUND.
Federal Reserve agent, at—
Balance
Gold
last
statement, withdrawals. Gold deposits,
Feb. 17,1921.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
Pan Francisco
$115,000,000
26,000,000
112,389,260
140,000,000
50,000,000
54,000,000
188,144,500
53,530,600
10,200,000
33,360,000
9,234,000
112,824,000
Total
,
904,682,360
$50,000,000
10,000,000
61,000,000
$65,000,000
"48*666," 666
30,000,000
38,900,000
105,500,000
28,000,000
65,000,000
26,800,000
16,000,000
35,500,000
10,000,000
414,900,000
211,800,000
Gold
transfers
to bank.
Gold
transfers
from bank.
$10,000,000
55,000,000
45,000,000
$40,000,000
150,000,000
104,000,000
15,000,000
2,500,000
53,400,000
65,000,000
16,000,000
1,500,000
10,000,000
4,000,000
2,000,000
2,000,000
31,364,500
160,864,500
58, 666,666
509,900,000
Total withdrawals,
including
transfers
to bank.
Total deposits, in
eluding
transfers
from bank.
Balance at
close of
business,
May 19,1921.
$60,000,000 $105,000,000 $160,000,000
111,000,000
65,000,000 150,000,000
110,389,260
106,000,000 104,000,000
155,000,000
15,000,000
34,500,000
"48*666*666' 32,500,000
67,000,000
53,400,000
40,400,000
212,644,500
105,500,000 130,000,000
58,330,600
42,800,000
38,000,000
6,200,000
4,000,000
30,360,000
24,000,000 '"21,'666," 666
1,234,000
18,000,000
10,000,000
103,959,500
66,864,500
58,000,000
575,764,500 721,700,000 1,050,617,860
INTER FEDERAL RESERVE BANK TRANSACTIONS FROM APR. 22 TO MAY 19, 1921, INCLUSIVE.
[In thousands of dollars.]
Daily settlements.
Transfers.
Federal Reserve Bank.
Debit.
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
DaUas
San Francisco..
Total, four weeks e n d i n g May 19, 1921
Apr. 21, 1921
May 20,1920
Apr. 22, 1920
26,000
40,000
4,000
13,500
31,114
500
4,500
1,500
4,911
16,317
142,342
154,747
522,776
503,354
Total
debits.
Total
credits.
500
10,000
2,000
14,000
2,000
369,022
1,406,577
499,893
399,587
433,852
150,240
641,276
335,248
102,205
278,053
156,886
181,263
1,351,
496,
407,
421,
158,
693,
332,
100,
282,
156,
167,
142,342
154,747
522,776
503,354
4,954,102
4,922,294
6,434,602
6,795,464
4,954,102
4,922,294
6,434,602
6,795,464
Credit.
6,742
62,025
2,500
11,075
30,000
1,500
Changes in ownership
of gold through trans- Balance
fers and settlements. in bank's
fund at
end of
period.
Decrease. Increase.
1,974
32,775
4,634
13,669
3,568
2,692
11,852
71,164
5,380
8,875
47,533
3,014
6,362
71,164
35,588
46,403
41,694
76,319
21,182
15,197
112,296
16,545
10,026
34,334
5,182
42,201
456,967
469,148
405,541
366,504
759
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
GOLD AND SILVER IMPORTS AND EXPORTS.
GOLD IMPOR1S INTO AND EXPORTS FKOM THE UNITED STATES, DISTRIBUTED BY COUNTRIES.
Imports.
Country.
Austria
Belgium
Denmark
France
Germany
Greece " . .
Iceland
Italy
Netherlands
Norway
Portugal
Russia in Europe
Spain.. ..
Sweden
Switzerland
During
10 days
ending
Apr. 20,
1921.
During
10 days
ending
Apr. 30,
1921.
During
month
of
April,
1931.
Exports.
During
10 days
ending
May 10,
1921.
$9,000
38,391
1,272,183
$1,182,261
$1,182,261
7,201,057 "$277,'36b 10,895,170 $2,769,593 58,899,961
7,279
3,686
965,745
9,534
9,534
91,020
91,020
2,777,080 4,109,747 11,052,004
628,297 628,297
8,394
4," 807
13,201
205,932
41,432 2,511,448 2,552,880
36,893
11,560,594 8,502,200 24,800,664 6,424,787
2,944
Turkev in EUTODG
United Kingdom—England
Total Europe
Total Asia
British West Africa
British South Africa
Portuguese Africa
$335,906
27,187
$10,000
912
201,339
102,285
40,000
12,815,065 1,161,428
628,297
3,324
20,892
13,593
85,000
3,003,688
35,904,407
2,944
238,488
1,100
13,235
-:
600
82,090
27,86G
4,000
17,418
158,353
32,245
83,000
36,984
16,324
283,697
68,680
354,932
2,794
23,907
5,000
15,230
56,179
253,046
54,545
243,861
8,800
25,130
2,343
58,000
• 9,189
3,582
99,581
10,000
92,973
193
14,507
226,545
218,927
694,858
356,607
163,271
29,G80
151,767
80,916
30,727
=
- -
20
20,791,604 18,909,820 $44,341 $115,113 $177,595 $63,651 $876,594 2,223,783
202,463 116,501
225,106
173,031 111,547
19,000
263,759 352,172
1,039,585
30,160
377,601 117,586
20,000
2,045,029 1,698,651 34,500 24,950 87,852 48,515 3,234,352 12,828,676
9,746
494
250,494
25,000
4,500 50,000
50,000
219,742
18,128
10,000
16,000
387,056
12,373
316,470
6,23i
2,358
163,538
2.026
4,042
48,840
38,816
1,829
1,364
1,236
76,667
848,712
12,412
6,231
14,731
750,843
67,204
3,390
5,278
128,611
1,505,845
17,068
424,396 1,414,708 2,886,257
14,175
372
485,540
54,382
88
920
555,477
1,093,132 1,287,809 2,380,941 123,310
871,748 2,148,538 3,214,415
75
46 758
4,160,000 1,845,892
4,160,000
1,600,851
1,600,851
195,604
37,175
237,999
299,633
7,921,335 3,473,522 11,640,964 2,268,910
60,491
1,240
2,827,207
534,425 1,755,774 1,096,111 28,175,473 21,359,085 128,841 140,063 315,447 112,660 4,361,440 15,142,459
302,190
Aiistr&liEL
Tahiti
Philippine Islands
During From
From
10 days Jan. 1 Jan.
ending to May May 110,to
May 10, 10,1931.
1920.
1921.
226,586
711,437
China
British India
Straits Settlements
Dutch East Indies
French East Indies
Hongkong
Japan
Turkey in Asia
During
month
of
April,
1921.
77,562,753 56,026,757
7,118,280 2,283,576 13,770,896 12,628,549
Total North America
Total South America
During
10 days
ending
Apr. 30,
1921.
29,895,045 18,412,048 64,995,927 22,072,384 191,556,378 57,608,195
Bermuda
British Honduras
Canada
Costa Rica
Guatemala
Honduras
Nicaragua
Panama
Salvador
Mexico
Cuba
British West Indies
Virgin Islands of United
States
Dominican Republic
Dutch West Indies
Argentina
Bolivia
Brazil
Chile
Colombia
Ecuador
British Guiana
Dutch Guiana
Peru
Urufiniav
Venezuela
From
J a n . 1 to
May 10,
1931.
From During
days
Jan. 1 to 10
ending
May 10, Apr.
20,
1920.
1921.
217,000
237,900
49,300
132,791
2 040
13,'250
13,250
10,746
57,121
630,768
1,538
14,783
67,566
5,036,135
264,848
10,798
26,382
395,301
2,745,009
317,490
89,995,000
25,693
5,542
4,585
197,467
253,710
253,412
22,060
24,300
329,577
250,000
400,000
700,000
130,000
57,136
12,850,000
184,000
9,510,618 1,149,182
24,300 104,509,000
12,164,970
11,294,623
204,063 2,268,802
6,005,892
4,446,396
2,208,234
683,296
37,007,474 2,270,062
3,900,287
756,926
449,908
21,665
13,250
51,823
166,328
16,286,750
4,702,013
6,683,454
60,000 7,845,105
1,260
346,398
47,400
18,540
68,340
95,450
616,510 22,676,362
7,262,067
47,400
18,540
68,340
95,450
676,510 65,455,751
300
220,370
28,038
107,439
Total, all countries. 39,013,944 24,114,253 81,664,903 26,060,749 1271,610,130 83,060,731
Excess imports or exports 38,837,703 23,955,650 81,281,116 25,852,639 266,547,580
176,241 158,603 383,787 208,110 2 5,062,550 185,361,834
102,301,103
i Inehides: Ore and base bullion, $18,734,003; United States mint or assay office bars, $428,000; other refined bullion, $190,462,000; United States
coin, $13,862,000; foreign coin, $48,125,000.
.,
„ _ , ...
_cfi nnn
n
* Includes: Domestic exports—Ore and base bullion, $27,000; United States mint or assay office bars, $390,000; other refined bullion, $56,000;
coin $4,254,000. Foreign exports—Ore and base bullion, $1,000; coin, $335,000.
760
FEDERAL RESERVE BULLETIN.
JUNE,
1921.
SILVER IMPORTS INTO AND EXPORTS FROM THE UNITED STATES, DISTRIBUTED BY COUNTRIES.
Exports.
Imports.
Country.
France
•
Germanv
....
Greece
Netherlands
Norway
Portugal
Spain
United Kingdom, England.
Total Europe
During
During D u r i n g
10 days 10 days month
of
ending ending
Apr. 20, Apr. 30, April,
1921.
1921.
1921.
$2,000
20,2G6
$435
21,219
$2,537
41,485
887
600
1,487
1,294
53
2,283
24,447
22,307
During
10 days
ending
May 10,
1921.
$1,325
48,281
From
Jan. 1
to
May 10,
1931.
$78,124
128,838
209,799
805
From
Jan. 1
to
May 10,
1920.
during
10 days
ending
Apr. 20,
1921.
During During During
From
10 days month Odays
Jan. 1
ending
of
ending
to
Apr. 30, April, May 10, May 10,
1921.
1931.
1921.
1931.
$55,791
369
14,453
5,288
160
11,317
15,430
,103,870
1,130,543
519,759 $797,993 $210,795 $1,008,788 $278,293 $5,029,109
$42,260
1,438,306
47,792 1,153,636
1,574,856
595,660 797,993 210,795 1,008,788 278,293
1,480,566
200"
British Honduras
Canada .
Costa Rica
fji i o f ckjrt a j a
Honduras
Nicaragua.
Panama
Salvador
Mexico
Cuba
British West Indies
Virgin Islands of United
States
Dominican Republic
Dutch West Indies
French West Indies
Haiti
Total North America
Argentina
Bolivia
Brazil
Chile
Colombia
Ecuador
British Guiana
Dutch Guiana
Peru
Venezuela
Total South America
China
British India
Dutch East Indies
French East Indies
Hongkong.
Japan
Russia in Asia
Turkey in Asia
Total Asia
Australia
New Zealand
Philippine Islands
Abyssinia
British South Africa
British West Africa
Portuguese Africa
Total, all countries..
Excess of imports or export
127,622
1,271
99,525
96,711
320
68,081
19
2 215
793,229
2,300
666,256
1,971
24
From
Jan. 1
to
May 10,
1920.
261,562
1,764
65,454
246,552 160,477
17,897
10,000
2,263
61,175
2,300
2,023,747 1,380,052
2,054
24
1,598
154
350
1,631,512
7,954
15
711,563
93,442
68,510
8,381
12,407,144
9,401
1,744
1,070
39,170
1,588,848 63,383
20,236
19,980
1,297,630
279,728
28,252
3,471,060
27,571,095 313,554
40,194
2,526
6,941
200
23,723
10,948
1,756
5,552
266,193
361,880
4,282
5,942
5,029,109
200
46,166
32,185
2,572
1,031,212
5,001,365
500
800
500
351,800
226,000
50,000
1,141,473
305,625
94,392
1,699,025
769,967
17,255
431,000
25,000
132,000
84,800
1,000
20
4,000
1,023,862
835,682 2,558,317 1,679,106 14,940,736 34,448,954 379,663 141,979
8,000
238
18,885
1,626
955
8,000
238
145,252
9,742
3,204
4
4,600
21,130
243,497
12
451,394
66
14,844
271,112
272,258
618,855
45,751
274
446
720
40
68,836
359
53
126,367
2,108
4
142,633
2,392
2,785
11,926
10,327
154,572
655,303
40,509
293
890,644 1,539,672
Q5}665 100,284
20,854
18,185
4
42
6,380
1,803,132 5,594,394
412
4,768
93
212,288
315
353
446
2,525
69,596
33
3,378
727
67
454
11,974
80,923
2,850,202
450
900
8,431,912
1,701
2,333
239,500
1,002
10,000
2,985,091 7,927,507
450
63,376
100,000
240,400
15,036
63,376
100,000
2,415,219 43,307,131
1,615,985
223,211
1,650 116,819 307,434
61,027
424,253 150,309
83,909
4,058,373
3,988,532 14,849,538
1,635,504
970
217,656 1,678,325 341,222 307,434
671,538 150,309
9,655,240 62,439,223
192
274
638,497
i*664,"76i
315
1,860
231
8,283
31
3,760
3,463
6,789
14,251
75,935
5,480
1,320,048 1,133,218 3,297,971 2,879,741 ^9,746,755 44,736,633 1,518,878 660,208 2,318,823 509,975 217,774,951 72,372,217
473,010
979,148 2,369,766
1,971,804
198,830
27,635,584
1 Includes: Ore and base bullion, $15,293,000; other refined bullion, $2,263,000; United States coin, $451,000; foreign coin, $1,740,000
2 Includes: Domestic exports—Ore and base bullion, $2,000; United States mint or assay office bars, $152,000; other refined bullion, $9,784,000coin, 1807,000. Foreign exports—Ore and base bullion, $2,000; bullion refined, $5,106,000; coin, $1,922,000.
• •
^
• • . . . ?
a
DISCOUNT AND INTEREST RATES.
In the following table are presented actual d^count and interest rates
prevailing during the 30-day period ending May 15, 1921, 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.
I
Rates for all classes of paper, except paper secured by Liberty bonds,
on the whole tended to decline from the levels prevailing in the period
ending April 15,1921. These declines have been most general in the case
of prime commercial paper purchased in the open market, in which case
they affect a considerable number of centers. Present rates for all classes
of paper, except bankers' acceptances, are higher in most reporting centers
than rates during the same period of 1920.
DISCOUNT AND INTEREST RATES PREVAILING IN VARIOUS CENTERS DURING 30-DAY PERIOD ENDING MAY 15, 1921.
Prime commercial paper.
District.
Customers'.
City.
30 to 90
days.
H.
No. / . .
No. 8..
No. 9...
No. 10..
No.il..
No. 12..
Richmond
Baltimore
Atlanta
Birmingham
Jacksonville
New Orleans
Nashville
Chicago
Detroit
St. Louis
Louisville
Memphis 2
Little Rock
Minneapolis
Helena
Kansas City
Omaha
Denver
Oklahoma City
Dallas
El Paso
Houston
San Francisco
Portland
Seattle
Spokane
Salt Lake City
Los Angeles
L.
a
64 7
6
7
6
7
5H 6
6
7
6
6
6 6-64
6
6
6
6
6
7
6
7
6
8
64 74-8
6
7
6^64-7
64 7
64 7
6
6
Open market.
4 to 6
months.
H. L.
72 6*
8 a
7 6
6 6
7 6
6 6
7 6
6 6
6 6
8 6
8 6
88 7
8 6 74-8
8 6 7
7 6 6£-7
7 6J
8 6J
7 6
8 7
8 7
10 8
8 6
8*7
8 6
8 6
8 7
10 8
7£6J
7 6
30 to 90
days.
H.
8
8
7f
L.
64
7|
7
7|6
7 64
C.
71
8
1\
4 to 6
months.
H.
8
71
8
7|
Indorsed.
Unindorsed.
8
8
8
8
7
51 51 52
8 6 64-74
7
64
7
6
817*
8 7-5
8 7
8 7|
7 | 74 74
8 71 74
71 7J 7*
8 6
8 6
74
7 7 8 74
6 64-7 7 6 6
6 7 7 6
5 6
6 7
6 6 I 6 6
7 64-7 i 7 64
6
8
8
8
8
6 6
6 7
6 7
6 8
64 74-8
7
7
8
7
6
64
6
6
7
7
7
6
7
74
8
6
7
64
8
6
5|
6
6
6
8
8
8
8
8
8
8 |10
8
7
64
7 6
7 54 5f
6 5§ 52
7 5f 52
i Rates for demand paper secured by prime bankers' acceptances, high, 6; low, 54; customary, 6.
8
8
8
8
8
8
10
8
10
8
7
8
6
6 6
8
8
8
8
7
7
74
7
8
10
8
7
8
8
8
S S*
7
3 to 6
months.
3 months.
7
8
7
6
7
6
74
6 6
6 6-7
6
7
7
6 6
7
6
64
Demand.
H. L. C.H.L.
6 6
7 6
9 64
7 6
7 6
7 6
7 | 7J
8 7f
Cattle
loans.
L, C. I H. L. C. H. L. C.
7
74 ! 7 7 7 5 | 54 of
of
71 71 I 8 5£ 6-7 6 | 51 6-64
664
74 8 f 8 6 7
7
7J 6 6 6
7| 6
7
7 6 6J-7
Ordinary
loans to
customers
Secured by secured by
warehouse Liberty
receipts, bonds and
etc.
certificates
of indebtedness.
Collateral loans—stock exchange
or other current.
! Interbank
! loans.
8 6 7-8 8 6 7-8
8 74 7 10 8 8
8 8 8
8 6J
8 7
8 7
9 7
8 6
Bankers' acceptances,
60 to 90 days.
H. L.
6
6
8
6
6
6
7
7
H. L.
a
7 64
6 6
7
6
H.
s?
7
6
6
6 7
6 8
64 74-8
6 7
64 7 7
64 7
6 7 74
6 6
7
74
8
6
H. L. C.
8
8
8
8
8
8
10
8
10
8
7
8
8
8
7
6
7
6
7
7
6
6
6
6
6
7
6
7
7
8
64 74-8
6
7
64 7
7
64 7
6
7
74
8
6
74
64
7
6
8
6
6
6
7
7
,
8
8
.....i 8
.....! 8
7 [' 7
64
6
7
74
6
7
7
7
8
74-8
7
7
8
8
8
10
8
10
8
7
6
7
64
7
8
8
7
64
8 74
8 7
7 64
8
2
7
74
8
6
7
64 7-74
6
6
64 64-7
6
7
6
7
6
6
7 6
8
.| 8
10
18
64
8 7
74 7
8
8
10
72 8
10
8
7
8
i1 8
8
8
8
7
6
6
64
6
6
6
6
7
7
7
6
6-7
7
7
No report.
OS
762
FEDERAL RESERVE BULLETIN.
MONEY HELD
OUTSIDE
THE UNITED STATES TREASURY
RESERVE SYSTEM, MAY 1, 1921.
General stock.
Gold coin (including bullion in Treasury).
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 1,1921
Apr.1,1921
M a r . l , 1921
Feb. 1,1921
Jan. 1,1921
July 1,1920
Jan. 1,1920
July 1,1919
Jan. 1,1919
July 1,1918
Jan. 1,1918
July 1,1917
JUNE, 1921.
Hold in the
United States
Treasury as
assets of the
Government. 1
$3, 089,679,782
$444,943,002
AND
THE
Amount per
Hold outside
Held b y or for
capita outside
United States
Federal Reserve
United
States
Treasury and
Banks and
Treasury and
Federal Reserve Federal
Reserve
System.
System.
$ai,609,244,067
424,569,174
8 33,038,269
59,122,160
346,681,016
1.158,204,305
175,014,400
723,816,352
7,282,672
4,367,839
1,975,102
15,263,092
«90,766,164
273,412,268
18,928,102
3,385,630
$400,753,864
210,169,675
44,933,940
112,781,301
261,563,483
1,583,984
248,632,180
2,880,424,198
154,111,196
705,167,630
!, 040,936,478
1,082,773,866
L084,936,396
$,171,237,897
L
372,970,904
r
, 887,181,586
',961,320,139
', 588,473,771
\ 780,793,606
>, 742,225,784
>, 256,198,271
5,480,009,884
508,349,193
496,945,969
493,970,120
499,358,809
494,296,257
485,057,472
604,888,833
578,848,043
454,948,160
356,124,750
277,043,358
253,671,614
2,512,465,834
2,534,743,843
2,385,101,578
2,438,773,422
2,377,972,494
2,021,271,614
2,044,422,303
2,167,280,313
2,220,705,767
2,018,361 825
1,723,570,291
1,280,880,714
5,020,121,451
5,051,084,054
5,205,858,698
5,233,105,666
5,500,702,153
5,380,852,500
5,312,009,003
4,842,345,415
5,105,139,679
4,367,739,209
4,255,584,622
3,945,457,556
276* 482," 326'
"""25* 022," 672'
27i,"658,"297*
FEDERAL
9,494,814
$46.57
46.91
48.41
48.73
51.29
50.19
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.
* Exclusive of $288,017,808 held with United States Treasurer in gold redemption fund against Federal Reserve notes, but inclusive of balances
in gold
settlement fund standing to the credit of the Federal Reserve Banks and'agents.
8
Includes subsidiary silver.
* Includes Treasury notes of 1890.
FEDERAL RESERVE BANK DISCOUNT RATES.
RATES ON PAPER DISCOUNTED FOR MEMBER BANKS IN EFFECT JUNE 1, 1921.
Paper maturing within 90 days.
Secured b y Federal Reserve Bank.
Treasury
certificates
of
indebtedness.
Boston
New Y o r k . . .
Philadelphia.
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco
6
6
*6
6
6
6
6
6
6
J
6
6
6
Liberty
bonds and
Victory
notes.
6
6
5J
6
6
6
6
6
6
6
6
6
Trade
acceptances.
6
96
6
6
961
6
Commercial
paper
n. e. s.
6
64
6
6
6
6
96*
6
6*
Bankers'
acceptances
maturing
within
3 months.
6
6
6
6
6
6
9
9
Agricultural
and live-stock
paper maturing
after 90 days,
but within 6
months.
6
64
6
6
6
6
64
6
64
6
* Discount rate corresponds to interest rate borne by certificates pledged as collateral.
NOTE.—Rates shown for St. Louis and Kansas City are normal rates, applying to discounts not in excess of a basic line fixed for each member
bank by the Federal Reserve Bank. I n the case of St. Louis average borrowings in excess of the basic line are subject to an additional charge of
1 per cent; while in the case of Kansas City the rates on discounts in excess of the basic line are subject to a £ per cent progressive increase for each
25 per cent by which the amount of accommodation extended exceeds the basic line, with a maximum rate of 12 per cent.
763
FEDERAL RESERVE BULLETIN.
JUNE, 1921.
EARNINGS AND DIVIDENDS OF STATE BANK AND TRUST COMPANY MEMBERS.
tSTRACT OF REPORTS OF EARNINGS AND DIVIDENDS OF STATE BANK AND TRUST COMPANY MEMBERS OF THE FEDER^
RESERVE SYSTEM FOR THE LAST SIX MONTHS OF 1920, ARRANGED BY FEDERAL RESERVE DISTRICTS.
[In thousands of dollars.]
District District District District District District District District District District District District
No. 1
No. 2 No. 3 No. 4 No. 5 No. 6 No. 7 No. 8 No. 9 No. 10 No. 11 No. 12
(39
(134
(84
(358
(120
(46
(110
(91
(61
(183
(55
(196
banks). banks). banks). banks). banks). banks). banks). banks). banks). banks). banks). banks).
Capital stock paid in
Surplus
Total
United
States
(1,477
banks).
35,261
38,437
175,384
187,600
24,935
48,250
40,834
68,724
14,733
9,704
25,050
16,500
98,554
83,983
27,675
21,595
10,147
3,620
8,460
3,345
15,071
6,032
50,402
22,819
73,698
362,984
73,185 109, 558
24,437
41,550 182,537
49,270
13,767
11,805
21,103
73,221 1,037,115
Gross earnings:
20,060
Interest and discount
52
Exchange and collection charges
452
Commissions...
2,103
Other earnings
92,921
547
3,073
21,164
10,088
83
152
2,256
20,328
62
353
5,159
4,456
91
75
602
11,924
736
319
675
49,657
757
1,061
6,782
11,601
392
265
1,060
4,396
85
81
210
3,696
48
39
646
4,804
202
53
188
23,861
564
315
1,962
257,792
3,619
6,238
42,807
22,667
117, 705
12,579
25,902
5,224
13,654
58,257
13,318
4,772
4,429
5,247
26,702
310,456
3,590
19,731
1,971
4,485
870
2,251
9,627
2,374
894
857
1,261
4,963
52,874
1,218
7,511
1,500
2,244
8,188
34,159
6,474
12,123
891
3,114
713
1,292
753
9,028
1,137
3,300
796
1,374
396
712
2,469
2,438
1,062
1,566
4,363
16,485
4,666
5,829
2,146
2,967
822
1,699
482
1,474
271
582
629
1,050
259
857
630
733
343
897
1,360
9,209
1,113
3,103
23,925
89,542
18,756
34,204
16,063
80,675
7,981
18,703
4,148
9,786
40, 970
10,008
3,703
3,652
3,864
19, 748
219,301
6,604
169
37,030
1,136
4,598
36
7,199
222
1,076
47
3,868
110
17,287
869
3,310
96
1,069
45
111
24
1,383
55
6,954
436
91,155
3,245
6,773
38,166
4,634
7,421
1,123
3,978
18,156
3,406
1,114
801
1,438
7,390
94, 400
1,174
1,335
105
5,336
8,186
1,461
23
836
126
192
1,132
366
130
219
31
1,052
1,477
168
1,295
3,003
1,141
793
761
327
372
78
61
158
145
21
859
99
212
1,659
1,100
658
13,043
18,371
4,677
36,091
Total capital and surplus
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
526,506
510,609
2,614
14, 983
985
1,690
380
2,697
5,439
1,881
511
324
1,170
3,417
Net addition to profits
4,159
23,183
3,649
5,731
743
1,281
12, 717
1,525
603
477
268
3,973
58,309
Dividends declared
Ratio of dividends declared to capital stock (annual basis), per cent.
Ratio of dividends declared to capital and surplus (annual basis),
per cent
Ratio of net profits to capital and
surplus (annual basis), per cent.
2,504
16, 308
2,450
3,917
859
1,564
6,147
1,659
396
441
737
3,618
40,600
14.2
18.6
19.7
19.2
11.7
12.5
12.5
12.0
7.8
10.4
9.8
14.4
15.4
6.8
9.0
6.7
7.2
7.0
7.5
6.7
6.7
5.8
7.5
7.0
9.9
7.8
11.3
12.8
10.0
10.5
6.1
6.2
13.9
6.2
8.8
8.1
2.5
10.9
11.2
764
FEDERAL RESERVE BULLETIN.
J L . N B , 1921.
FINANCIAL STATISTICS FOR ENGLAND, FRANCE, ITALY, GERMANY, SWEDEN, AND
JAPAN.
A summary of banking and financial conditions abroad is presented statistically in the
accompanying tables. Similar material will be published regularly each month in the
BULLETIN.
BRITISH FINANCIAL SITUATION.
[Amounts in millions of pounds sterling.]
Deposit and note accounts, Bank of Government floating debt.
England and Treasury.
Bank
notes. 1
1913, average of end
of month figures...
1920, end of—
March
April
May
June
,
July
August
September
October
November...
December
1921:
January
February
March
April
May
1
Currency
notes
and
certificates
outstanding.
DeCoin
posits,
Treas- Tempo- Total
public
ury
rary ad- floating
and
debt.
bullion.2 bills.
and
other.
29
38
335
337
348
357
362
356
354
356
349
368
137
140
118
192
134
116
127
137
123
190
141
141
141
146
152
152
152
152
153
157
1,107
1,048
1,062
1,050
1,058
1,067
1,139
1,028
1,097
1,102
205
249
221
244
204
183
143
241
231
306
1,312
1,297
1,283
1,294
1,262
1,250
1,282
1,269
1,328
1,408
109
108
110
109
108
342
336
344
338
333
129
127
138
141
128
157
157
157
157
157
1,145
1,110
1,1?1
1,100
1,152
242
1S9
155
190
163
1,387
1,299
1,275
1,290
1,315
3
Money
Disat call counts
Investand
and
ad- ments.
short vances.
notice.
Discount rates.
3 months' 6 months'
Debank
trade
posits.
bills.
bills.
Per cent. Per cmt.
57
99
101
104
107
107
106
109
109
109
113
Less notes in currency notes account.
Nine London clearing banks. 3
1,207
1,172
1,145
1,127
341
340
336
334
Held by the Bank of England and by the Treasury as note reserve.
1,810
1,754
1,715
1,710
8
Average weekly figures.
FRENCH FINANCIAL SITUATION.
[Amounts in millions of francs.]
Bank of France.
Gold.
1913, average..
1920, end of—
April
May
June
July
August
September
October...
November.
December.
1921:
January...
February.
March
April
May
1
Silver
reserves.
Deposits.*
Situation of the Government.
Advances
to the
Govern- GovernCircula- ment
for m e n t 8
tion.
purposes revenue.
of the
war.8
Value of
new stock
and bond
issues
Price of placed
Public 3 per cent upon
the
debt. perpetual French
rente. market. 4
3,343
629
35,000
86.77
5 3,608
5 3,609
5 3,610
5 3,611
5 3,612
'3,531
'3,537
7 3,543
'3,552
244
240
241
248
255
256
264
265
266
3,469
3,751
3,653
3,416
3,267
3,307
3,474
3,927
3,575
37,688
37,915
37,544
37,696
37,905
39,208
39,084
38,807
37,902
25,300
26,050
26,000
25,550
25,800
26,600
26,600
26,600
26,600
1,057
857
908
1,109
882
1,120 6 285,836
1,332
1,088
1,168
57.40
59.35
57.25
58.90
56.30
54.15
56.20
55.40
57.95
7 3,553
7 3,555
7 3,556
7 3,566
7 3,570
268
264
267
271
272
3,429
3,293
3,103
3,018
3,041
37,913
38,435
38,211
38,233
25,600
25,600
26,200
26,000
26,200
1,204
921 8 302,735
972
1,248
59.16
58.15
58.17
56.92
57.50
5,565
320
995
1,861
344
1,085
Includes Treasury and individual deposits.
a Under the laws of Aug. 5 and Dec. 26,1914, July 10,1915, and Feb. 16,1917.
» From indirect taxation and Government monopolies.
* Figures of the "Association Nationale des Porteurs Francais de Valeurs Mobilieres." Bonds issued by the Government and the railroad
c ompames not included.
* Not including about 1,978 million francs held abroad.
* Foreign debt calculated at the exchange rates of Sept. 30,1920.
» Not including about 1,948 million francs held abroad.
» Foreign debt calculated at the exchange rates of Feb. 28,1921.
765
FEDERAL RESERVE BULLETIN.
JUNE), 1921.
ITALIAN FINANCIAL SITUATION.
[In millions of lire.]
Leading private banks. 1
Cash.
E n d of December,
1913
Banks of issue.
Loans,
disDeposcounts, its and Loans Gold
and
correand
recorre- sponddisspondents' counts. serve.
ents'
credits.
debts.
Government finances.
Depos- Com- Circulaand mer- tion for State
Total itsdecurrecial
account rency
mand circuserve. liabiliof the notes.
ties. lation. state.
129
2,007
1,674
857
1,375
1,661
318
2,284
January
February
March
April
May
June
July
August
September
October
November
December
825
749
818
850
813
874
864
872
942
1,035
1,097
1,297
13,054
13,571
14,421
14,884
15,240
14,996
14,924
15,177
15,653
15,700
16,003
16,538
12,094
12,629
13,397
14,045
14,044
14,060
14,131
14,457
14,824
14,909
15,315
15,801
4,173
4,671
5,322
5,804
5,782
6,784
6,576
6,233
6,628
7,083
6,397
7,074
1,038
1,038
1,028
1,038
1,038
1,039
1,039
1,039
1,039
1,058
1,058
1,058
2,021
2,047
2,053
.2,035
2,065
2,110
2,113
2,172
2,217
2,082
2,069
2,077
2,376
2,224
2,296
2,377
2,264
2,379
2,196
2,276
2,494
2,337
2,589
2,559
4,920
4,848
5,478
6,029
6,459
7,484
7,615
7,413
8,231
8,361
8,577
1921.
January
February
March
1,184
1,012
1,061
17,113
16,842
17,096
16,392
15,961
16,425
6,931
7,158
7,144
1,058
1,059
1,062
2,045
"2*643
2,635
2,221
2,461
8,658
8,618
9,234
1920.
Treasury
metallic reserve.
Shortterm
treasury
bills.
Principal
revenues
from
taxaTotal
tion
public
and
debt.
monopolies
during
month. 8
117
2,345
338
2,538
343
2,546
349
9,300
0,800
10,200
10,300
10,700
11,700
13,200
*2,'546"
95,000
99,000
ioi'666'
561
878
461
1,268
563
1,222
822
1,210
606
10,606
10,308
9,531
1
Banca Commerciale Italiana, Banca Italiana di Sconto, Credito Italiano, Banco di Roma.
* Revenues from state railways; from post, telegraph, and telephones; from state domain; from import duties on grain; and from Government
es of sugar are not included.
GERMAN FINANCIAL SITUATION.
[Amounts in millions of marks.]
Situation of the Government.
Reichsbank statistics.
Gold,
1913 average...
1920, end of—
April
May
June
July
August—
September
October...
November.
December.
1921, end of—
January...
February..
March.....
April
Note
Reichs
circulaund
tion.
Dariehnskassenscheine.
1,068
Dariehnskassen- Receipts
scheinein from
circula- taxes and Floating 3 per cent 5 per cent
war
Deposits, tion.
Governdebt. imperial
loan.i
loanJ
ment
monopolies;
668
15,193
15,907
17,252
17,874
18,686
19,861
21,341
20,363
23,417
47,940
50,017
53,975
55,969
58,401
61,735
63,596
64,284
68,806
16,499
17,024
23,414
17,282
15,772
20,054
17,945
17,340
22,327
13,776
13,567
13,633
13,328
13,266
13,348
13,024
12,370
12,033
2,072
2,599
3,227
3,739
3,635
4,126
5,121
6,130
9,103
1,092
1,092
1,092
1,092
22,810
21,982
66,621
67,427
69,417
70,840
15,834
17,357
28,043
20,856
11,341
10,755
10,168
9,543
8,721
»9.356
»8,527
24,149
75.90
265
1,958
1,092
1,092
1,092
1,092
1,092
1,092
1,092
1,092
1,092
Value
of new
stock and Index
bond
number
issues of securiplaced
ties
upon the prices.*
German8
market.
148,750
156,825
161,920
165,918
152,727
74.50
67.50
62.90
60.64
60.80
62.25
66.25
68.60
65.75
98.75
98.70
98.30
98.50
98.70
99.90
99.00
98.75
98.90
166,329
172,634
67.00
67.25
67.60
72.10
99.50
99.75
99.70
99.80
141,987
* 133
6 109
6 117
^140
148
161
172
179
189
2,042
2,397
894
2,559
1
Quotations of the Berlin Bourse.
* Calculated by the Frankfurter Zeitung with the prices of 10 bonds and 25 stocks. Prices as of Jan. 1,1920=100.
«Compilation of the Frankfurter Zeitung.
< As of May 3.
»As of June 1.
« As of July 1.
' As of Aug. 2.
» Does no?include postal and telegraph receipts,which averaged 361,000,000 marks during the first 10 months of the fiscal year.
179
155
*163
159
766
JUNE, 1921.
FEDERAL RESERVE BTJLLETIJST.
SWEDISH FINANCIAL SITUATION.
[In millions of kronor.]
Biksbank.
Joint-stock banks.
Riksbank.
Bills
disGold coin Note counted
Loans
and
circula- with the and distion.
bullion.
counts.
Riksbank.
Bills
disLoans
Gold coin Note counted
and
circula- with the and discounts.
bullion.
tion.
Riksbank.
1913, end of December
1920, end of:
March
April
May
June
July
August
September
1
102.1
234.5
155.2
261.1
261.0
261.0
261.1
261.3
261.4
279.8
741.6
718.3
708.3
736.5
724.8
742.2
779.8
503.5
493.8
470.4
527.6
511.8
566.0
544.7
Joint-stock banks.
1920, end of—Continued:
October
November
5,877.4
December
5,969.4
5,998.6 1921—January
February
5,982.9
March
6,028.9
6,007.4
April
6,068.7 |
Mayi
2,286.9
282.4
282.4
281.8
281.9
281.8
281.7
281.8
281.6
772.8
752.8
759.9
672.5
687.6
716.9
680.5
651.1
501.5
446.0
450.3
429.2
451.3
442.2
400.5
6,079.0
6,117.8
6,211.3
6,172.6
6,119.2
6,093.6
6,065.3
5.982.7
Provisional.
JAPANESE FINANCIAL SITUATION.
[Amounts in millions of yen.}
Bank of Japan.
Private Loans
and Gov- and
disernment counts.
deposits.
1920, end of—1
March
April
May
June
July
August
September.
October
November.
December..
1921, end of—
January...
February.
March
April
Tokyo banks.
Tokyo
Tokyo
bank
Note
associated
clearings
Specie 2
circula- reserve.
(total
tion.
total
within
loans.
the
month).
Average
discount
rate
(Tokyo
market).
1,181
1,261
1,209
1,165
1,120
1,202
1,079
1,048
1,137
1,040
364
432
445
381
273
278
180
164
128
158
1,368
1,367
1,328
1,349
1,202
1,217
1,170
1,192
1,180
1,439
921
917
930
979
1,011
1,040
1,078
1,117
1,152
1,247
1,982
1,982
2,089
2,036
2,029
2,014
2,076
2,133
2,134
2,137
4,135
3,168
2,922
2,524
2,109
2,139
2,032
1,922
2,302
2,841
Per cent.
10.15
10.62
10.95
10.99
10.95
10.80
10.59
10.48
10.44
10.26
1,071
1,126
1,190
115
103
1,235
1,141
1,178
1,235
1,141
1,178
2,171
2,188
2,219
1,848
2,013
2,143
2,502
2,442
10.33
9.71
9.23
1
In case of Tokyo banks, and note circulation and specie reserve of Bank of Japan, last day of month.
* It is generally understood that in recent years a certain portion of the reserve has been held abroad. Specie reservefiguresdo not include
bank's own notes held in the bank.
INDEX.
•Acceptances:
Page.
Banks granted authority to accept up to 100 per cent of capital
and surplus
670
Condition of the acceptance market
667
Held by Federal Reserve Banks
735
Open-market purchases of six months' acceptances, ruling on.. 648
Purchased by Federal Reserve Banks
733
Purchases of bankers' acceptances direct from accepting banks,
ruling on
699
Renewal acceptances in import transactions, ruling on
699
Australia, index of wholesale prices in
726
Bank debits
750-754
Banking situation, discussion of
654
Business and financial conditions:
England
689,764
France
691,764
Germany
694,765
Italy
693,765
Sweden
696,766
United States
656
Canada, index of wholesale prices in
727
Certificates of indebtedness issued
653
Charters issued to national banks
698
Charts:
Assets and liabilities of Federal Reserve Banks
737
Assets and liabilities of member banks
744
Debits to individual account
751
Earning assets, note circulation, and cash reserves of Federal
Reserve Banks, also imports and exports of merchandise and
wholesale price index
672
Earnings of the Federal Reserve Banks in 1920
673
Gold imports and exports, November, 1918-May, 1921
680
Gold reserves of principal countries
677
Physical volume of trade
708
Wholesale prices in the United States
703
Check clearing and collection:
Operations of system during May
755
Supreme Court decision in Atlanta par clearance case
700
Clearing-house bank debits
750-754
Commercial failures
698
Condition statements:
Federal Reserve Banks
736-742
Member banks in leading cities
743-750
Cotton fabrics, production and shipments
719
Credit:
For financing exports
646
Letters of, use in financing foreign trade
648,681
Debits to individual account
750-754
Delano, F. A., appointed Class C director of Federal Reserve Bank
of Richmond
655
Discount and open-market operations of Federal Reserve Banks. 730-735
Acceptances held
735
Acceptances purchased
733
Bills discounted
733
Bills held
734
Earning assets held
734
Number of banks discounting during April
731
Volume of, during April
732
Discount rates:
Discussion of
651
v
In effect June 1
762
Prevailing in various centers
761
Earnings of Federal Reserve Banks, chart showing
673
Earnings and dividends of State bank and trust company members 763
England:
Business and financial conditions
689,764
Foreign trade
728
Wholesale price index
724
Export credits
646
Circular of War Finance Corporation on
647
Failures, commercial, reported
698
Federal Advisory Council, meeting of
655
Federal Reserve Banks:
Condition of
736-742
Discount and open-market operations of
730-735
Earnings of, chart showing
673
' FEDERAL RESERVE BULLETIN, index-digest of
Federal Reserve note account
Fiduciary powers granted to national banks
Foreign trade:
Corporations for financing
Discussion of
Ind ex of
Letters of credit, use in
financing
United Kingdom, France, Italy, Sweden, and Japan
War Finance Corporation circular relative to
France:
Business and financial conditions in
Foreign trade
Wholesale price index
German reparations settlement
Germany:
Business and financial conditions in
Wholesale price index
655
742
f
647
645
706
648
728
647
691,764
729
725
650,674
694,765
725
Gold:
Imports and exports—
During the month
From November, 1918, to April, 1921
Production of the world
Reserves of the principal countries
Gold settlement fund transactions:
During the month
During three months period
Harding, W. P . G., summary of address of
Imports and exports:
GoldDuring the month
From November, 1918, to April, 1921
Silver
Index-digest of the FEDERAL RESERVE BULLETIN
Page.
694,759
679
678
676
758
756-758
671
654,759
679
654,760
655
Index numbers:
Foreign trade
706
Physical volume of trade
707
Retail prices in principal countries
727
Wholesale prices abroad
652,723-727
Wholesale prices in the United States
652,702,723
India, index of wholesale prices in
727
Interest rates prevailing in various centers
761
Italy:
Business and financial conditions in. 693,765
Foreign trade
729
Wholesale price index
725
Japan:
Financial conditions in
766
Foreign trade
729
Knit goods production
720
Law department, Supreme Court decision in Atlanta par clearance case
700
Letters of credit:
Guaranteeing of
648
Use in financing foreign trade
648,681
Lloyd-George on German reparations settlement
651
Member banks:
Condition of.
743-750
Number discounting during April
731
Number in each district
731
State banks admitted to system
698
Mitchell, J. R., appointed member of Federal Reserve Board
655
Money, stock of, in the United States
762
National banks:
Charters issued to
698
Fiduciary powers granted to
688
Norway, wholesale prices in
726
Par list, number of banks on
755
Physical volume of trade
707
Prices:
Discussion of.
,
652
Retail, in principal countries
727
Wholesale, abroad
652,723-727
Wholesale, in the United States
652,702,723
Protocol of the German reparations commission
674
Rates, discount:
Discussion of
651
In effect June 1
762
Prevailing in various centers
761
Readjustment situation
645
Reserve ratio of the Federal Reserve Banks
655
Resources and liabilities:
Federal Reserve Banks
736-742
Member banks in leading cities
743-750
Retail prices in principal countries
727
Retail trade, condition of
720
Review of the month
645
Rulings of the Federal Reserve Board:
Purchase of bankers' acceptances direct from accepting bank. 699
Renewal acceptances in important transactions
699
Silver imports and exports
654,760
Speech of Gov. Harding, summary of
,
671
State banks and trust companies admitted to system
698
Sweden:
Business and financial conditions in
696,766
Foreign trade
729
Wholesale price index
725
Trade:
Foreign. (See Foreign trade.)
Physical volume of
707
Retail, condition of
720
Wholesale, condition of
722
Treasury certificates of indebtedness issued
653
Treasury, condition of
653
United States Supreme Court, decision of, in Atlanta par clearance case
700
War Finance Corporation, circular of, relating to export credits... 647
Wholesale prices:
Abroad
652,723-727
In the United States
652,702
Wholesale trade, condition of
72?
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