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FEDERAL RESERVE
BULLETIN




JUNE 1933

ISSUED BY THE

FEDERAL RESERVE BOARD
AT WASHINGTON

Recent Banking Developments
Banking Act of 1933
Gold Reserves of Principal Countries, 1913-1933
Annual Report of Bank for International
Settlements

UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1933

FEDERAL RESERVE BOARD
Ex officio members:
WILLIAM H. WOODIN,

Secretary of the Treasury, Chairman.
J. F. T. O'CONNOR,

Comptroller of the Currency.

E. M. MCCLELLAND, Assistant to the Governor.

EUGENE R. BLACK, Governor.
CHARLES S. HAMLIN.
ADOLPH C. MILLER.
GEORGE R. JAMES.
J. J. THOMAS.
M. S. SZYMCZAK.

CHESTER MORRILL, Secretary.

E. A. GOLDENWEISER, Director, Division of Research
and Statistics.

J. C NOELL, Assistant Secretary and Fiscal Agent.
S. R. CARPENTER, Assistant Secretary.

CARL E. PARRY, Assistant Director, Division of Research
and Statistics.

WALTER WYATT, General Counsel.

E. L. SMEAD, Chief, Division of Bank Operations.

GEORGE B. VEST, Assistant Counsel*

J. R. VAN FOSSEN, Assistant Chief, Division of Bank
Operations.

LEO H. PAULGER, Chief, Division of Examinations.
FRANK J. DRINNEN, Federal Reserve Examiner.

FEDERAL ADVISORY COUNCIL
District no. 1 (BOSTON)
District no. 2 ( N E W YORK)
District no. 3 (PHILADELPHIA)
District no. 4 (CLEVELAND)
District no. 5 (RICHMOND)
District no. 6 (ATLANTA)
District no. 7 (CHICAGO)
District no. 8 (ST. LOUIS)
District no. 9 (MINNEAPOLIS)
District no. 10 (KANSAS CITY)
District no. 11 (DALLAS)
District no. 12 (SAN FRANCISCO)

THOMAS M. STEELE.
WALTER E. FREW.
HOWARD A. LOEB.
H. C. MCELDOWNEY
HOWARD BRUCE.
JOHN K. OTTLEY.

MELVIN A. TRAYLOR, Vice President.

WALTER W. SMITH, President.
THEODORE WOLD.
W. T. KEMPER.
JOSEPH H. FROST.
HENRY M. ROBINSON.
WALTER LICHTENSTEIN, Secretary

II




OFFICERS OF FEDERAL RESERVE BANKS
Federal Reserve Bank
of-

Governor

Chairman

R. A. Young

Boston
New York

F. H. Curtiss
J. H. Case

Philadelphia.

R. L. Austin

G. W. Norris

Cleveland

L. B. Williams

E. R. Fancher

Richmond

W. W. Hoxton

G. J. Seay

_.._

W. S.Johns3

Atlanta

' Oscar Newton

Chicago

E. M. Stevens

J. B. McDougal

St. Louis

J. S. Wood

W. McC. Martin

Minneapolis

J. N. Peyton

W. B. Geery

Kansas City

M. L. McClure

G. H. Hamilton

Dallas

C. C. Walsh

B. A. McKinney

San Francisco

Isaac B. Newton

J U. Calkins

i Assistant deputy governor.

Cashier

Deputy governor
W. W. Paddock
W. R. Burgess
J. E. Crane
A. W. Gilbart
E. R. Kenzel
W. S. Logan
L R. Rounds
L. F. Sailer
W. H. Hutt

W. Willett.
C. H. Coe.i
R. M. Gidney.i
J. W. Jones.»
W. B. Matteson.i
J. M. Rice.' 1
Allan Sproul. 1
L. W. Knoke.
C. A. Mcllhenny.
W. G. McCreedy.»
H. F. Strater.

M.J. Fleming
F. J. Zurlinden
C. A. Peple
R. H. Broaddus
H. F. Conniff

G. H. Keesee.
J. S. Walden, Jr.*
M. W. Bell.
W. S. McLarin, Jr.*
W. H. Snyder»
C. R. McKay
H. P. Preston
_. W. C. Bacbman.i
R. H. Buss.i
J. H. Dillard
0. J. Netterstrom.1
A. T. Sihler.i
E. A. Delaney.*
S. F. Gilmore.*
0. M. Attebery
A. H. Haill.»
J. G. McConkey
F. N. Hall.»
G. 0. Hollocher.*
0. C. Phillips.*
H. I. Ziemer.
Harry Yaeger
F. C. Dunlop.*
H. I. Ziemer
C. A. Worthington.... J. W. Helm.
J. W. Helm
R. R. GUbert
Fred Harris
R. B. Coleman
W. 0. Ford.»
W. A. Day
W. M. Hale.
Tra Clerk

• Controller

8

Acting governor.

MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS
Federal Reserve Bank o—
f
New York:
Buffalo Branch __
Cleveland:
Cincinnati branch
Pittsburgh branch
Richmond:
Baltimore branch
Charlotte branch
Atlanta:
New Orleans branch.__
Jacksonville branch
Birmingham branch
Nashville branch
Chicago:
Detroit branch
St. Louis:
Louisville branch
Memphis branch
Little Rock branch....

Managing director

R. M. O'Hara.
C. F. McCombs.
J. C. Nevin.
Hugh Leach.
W. T. Clements.
Marcus Walker.
Hugh Foster.
J. H. Frye.
J. B. Fort, Jr.
W. R. Cation.
J. T. Moore.
W. H. Glasgow.
A. F. Bailey.

Federal Reserve Bank o—
f
Minneapolis:
Helena branch
Kansas City:
Omaha branch
Denver branch
Oklahoma City branch..
Dallas:
El Paso branch..
Houston branch
San Antonio branch
San Francisco:
Los Angeles branch
Portland branch
Salt Lake City branch..
Seattle branch __
Spokane branch

Managing director

I

R. E. Towle.
L. H. Earhart.
J. E. Olson.
C. E. Daniel.
J. L. Hermann.
W. D. Gentry.
M. Crump
W. N. Ambrose.
R. B. West.
W. L. Partner.
C. R. Shaw.
D. L. Davis.

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. The BULLETIN will be sent to all member banks without charge. To others the
subscription price, which covers the cost of paper and printing, is $2. Single copies will be
sold at 20 cents. Outside of the United States, Canada, Mexico, and the insular possessions,
$2.60; single copies, 25 cents.
in




TABLE OF CONTENTS

Review of the month—Recent banking developments

331

Report of Reconstruction Finance Corporation

341

Annual report of the Bank for International Settlements

355-367

National summary of business conditions

342

Financial, industrial, and commercial statistics:
Reserve bank credit, gold stock, money in circulation, etc
Member and nonmember bank credit:
All banks in the United States
All member banks
Weekly reporting member banks in 90 leading cities
Brokers' loans
Acceptances and commercial paper
Discount rates and money rates
Security prices, security issues, United States Government securities
Production, employment, car loadings, and commodity prices
Merchandise exports and imports
Department stores—Indexes of sales and stocks
Freight-car loadings, by classes
Financial statistics for foreign countries:
Gold reserves of central banks and governments, 1913-1933
Gold production
_
Gold movementsGovernment note issues and reserves
Bank for International Settlements
Central banks
Commercial banks
Discount rates of central banks
Money rates
Foreign exchange rates
Price movements:
Security prices
_
Wholesale prices
Retail food prices and cost of living

343-346
348
341, 347, 404
349, 405
349
350
351, 406
352
;__
353, 408-410
354
354
354

_

_-

368-372
373
373-375
376
376
377-379
380
381
381
382
383
383, 384
384

Law department:
Banking Act of 1933 (approved June 16, 1933)-..

385-401

Federal Reserve statistics by districts, etc.:
Banking and financial statistics
Industrial and commercial statistics

402-407
408-411

IV




FEDERAL RESERVE BULLETIN
VOL.

19

JUNE 1933

REVIEW OF THE MONTH
During May there was a further inflow of
currency to the Federal Reserve banks, which
brought the total return of curReturn flow of r e n c y s i n c e March 4 to $1,670,currency and

gold

X

™ .

„

000,000. This return flow compares with total withdrawals of
$1,840,000,000 between February 1 and March
4, so that total money in circulation at the end
of May was $170,000,000 larger than at the end
of January. A part of this increase may reflect
the recent growth in the volume of business
activity with a consequent increase in the
demand for currency for pay rolls and for retail
trade. It would appear, therefore, that all or
nearly all of the currency withdrawn during the
period prior to the closing of the banks has
been returned to the Federal Reserve banks.
The country's stock of monetary gold showed
little change during May, while the gold
reserves of the Federal Reserve banks increased
by $125,000,000 between April 26 and May 31,
1933. Of this amount $75,000,000 represented
gold returned from circulation and $50,000,000
gold deposited with the Federal Reserve banks
by the Treasury. By the end of May, gold coin
and certificates officially recorded as outside
the Treasury and the Federal Reserve banks
were reduced to $605,000,000, the lowest
amount since 1922. In this total is included a
considerable volume of gold coin and gold
certificates that have been lost or destroyed,
as well as gold coin exported without a record
and gold certificates held abroad.
Funds made available to member banks during May through the return flow of currency,
together with the proceeds of $55,000,000 of




No. 6

United States Government securities purchased
by the Federal Reserve banks in the open market, were used in repayment of borrowing at
the Federal Reserve banks and in a reduction
of the reserve banks' holdings of acceptances.
The reserve banks' portfolio of open-market
bills declined by $155,000,000 during the
month and their holdings of discounts by
$85,000,000. Member bank reserve balances
at the end of May were about $325,000,000 in
excess of legal reserve requirements.
Publication of weekly statistics showing the
movement of loans, investments, deposits, and
other items on the statements
member banks °^ member banks in leading
cities was resumed by the Federal Reserve Board during May. The figures
published currently at the present time include
reports from member banks in 90 leading cities,
compared with 101 cities included in previous
reports. In the cities included in the weekly
statement practically all the previously reporting banks have been reopened under license;
and present reports include about 90 percent
of the banking resources covered by the earlier
statistics.
At the reporting banks, total loans and investments increased by $525,000,000 between
March 1 and May 31, more than three fourths
of the increase being at member banks in New
York City. This increase reflected a growth of
$315,000,000 in holdings of United States Government securities and of $220,000,000 in loans
other than security loans, while loans on securities declined slightly, notwithstanding an
increase of about $200,000,000 in loans to
brokers and dealers in securities. The increase
331

332

FEDERAL RESERVE BULLETIN

JUNE 1933

in loans may have reflected in large part the influence of the recent banking crisis on cuspurchase of acceptances by the reporting banks. tomers' rates was confined for the most part to
Money rates declined somewhat further dur- the northeastern sections of the country, where
ing May, and at the end of the month were rates rose sharply in February and March,
close to the low levels pre- both in New York City and in other leading
Money rates
vailing before the banking northern and eastern cities. In southern and
crisis. The table shows that western cities, on the other hand, where movein the open market in New York quotations ments of customers' rates are usually on a
on prime commercial paper had dropped by smaller scale, there was relatively little change
the week ending June 3 to 2 percent, as com- in the level of these rates which remained within
pared with a range of 1% to l}i percent in the the general range that has prevailed in these
week ending January 28, while quotations on cities since the autumn of 1931. The chart
prime 90-day bankers' acceptances had again
RATES CHARGED CUSTOMERS
dropped to a range of three eighths to one half
percent, compared with one fourth percent
during the earlier period. Call loans to brokers,
in which there has been the greatest increase
during the banking crisis, were quoted at 1 percent at the end of May, as compared with 4.75
percent during the week ending March 18.
OPEN-MARKET RATES IN NEW YORK CITY
1924

Week e n d i n g -

1925

1926

1927

1929

1930

1931

1932

1933

also shows that the passing of the banking
crisis was accompanied by a decline in customJan. 28 Mar. 18 June 3
ers' rates in the northeastern sections of the
Prevailing rate on:
country and that in May these rates were back
Prime commercial paper, 4-6
months
„__
2 to the levels which prevailed in the autumn of
W-ig 4 -4H
Prime bankers' acceptances, 90 days.
2^-3^'
Average rate on call loans-.
_
1.00
1.00 1932.
4.75
Prices of many commodities that are freely
Rates at most of the reserve banks on dis- traded in in the organized exchanges and
counts for and advances to member banks
quickly respond to changes in
Commodity prices
under sections 13 and 13a of the Federal and the foreign ex- business and financial condiReserve Act have been reduced recently. On changes
tions have advanced rapidly
May 26 the rate at the Federal Reserve Bank
in American markets since
of New York was reduced from 3 to 2}{ percent; the early part of April. This advance has coron May 27 the rate at Chicago, on June 1 the responded both to the decline in the exchange
rate at Boston, on June 2 the rate at San value of the dollar which has occurred during
Francisco, on June 8 the rates at Philadelphia this period and to a rise in the world price
and St. Louis, and on June 10 the rate at level of these commodities.
Cleveland were reduced from 3% to 3 percent.
Changes in the exchange value of the dollar
Changes during recent years in rates charged in relation to the British pound are shown in
by banks in leading cities to their own custom- the upper section of the chart, which comers are shown on the chart, pares fluctuations in the Paris quotations of
Customer rates
which compares the average British pounds and United States dollars. The
rate charged customers in New comparison is made in terms of the French
York City with a weighted average of custom- franc, the most important currency now on a
ers' rates in 8 other northern and eastern gold basis, and shows percentage changes in
cities, and 27 southern and western cities. The the quotations since February of this year^




FEDERAL RESERVE BULLETIN

JUNE 1933

The chart indicates that the quotation of the
dollar has fallen by about 15 percent during
this period in terms of the French franc,
whereas the British pound has declined by 2
percent during the same period.
The extent to which the rise in the prices of
certain commodities in this country has corresponded on the one hand to the change in the
value of the dollar abroad and on the other
hand to changes in world prices is shown in the
lower section of the chart. Each of the three
PRICES AND EXCHANGE RATES
Feb 1933 = 100

INDEX OF SIX INTERNATIONAL COMMODITIES

Feb

lines in this section represents a simple index
of fluctuations since February 1 in daily prices
of six basic materials—cotton, lard, silver,
copper, tin, and rubber. The lower line is an
index of the prices of these six international
commodities in the British market in terms of
the pound sterling and shows that on the average the prices of these commodities have advanced in Great Britain during the period by
somewhat more than 30 percent. Inasmuch
as the pound sterling was relatively stable in
terms of gold currencies during this period,
this advance reflects almost entirely a rise in
the world price of these commodities. The
middle line shows an index of these British
prices converted into dollars at the current rate




333

of exchange each day. This index should
closely parallel the index of American prices for
these international commodities shown in the
upper line. The chart shows that these two
indexes have actually fluctuated very closely
together throughout the period, but since the
first of March the index of American prices
has been consistently higher than the comparable British index. It appears, therefore, that
American prices have advanced somewhat more
rapidly than British prices even after allowance has been made for differences due to depreciation in the exchange value of the dollar.
At the end of May, American prices of these
six commodities averaged about 60 percent
higher than in February. Of this rise of 60
points in the index, about one half appears to
correspond to a rise in the British or world
prices of these commodities. Of the other half
of the advance, a part corresponded to the
decline in the exchange value of the dollar as
compared with the pound sterling, and a part
represented price advances in the American
market in excess both of the advance in British
prices and of the depreciation of the dollar in
the exchange market.
On May 26 there was introduced in the two
houses of Congress a resolution authorizing the
issuance of United States Govgold°cfauses°
ernment obligations payable in
legal tender money rather than
in gold and declaring that all debts, public and
private, whether they contain the so-called
gold clause or not, can be satisfied by payment
in legal tender money. In explanation of this
resolution the following statement was given
out at the Treasury Department:
"A joint resolution was introduced today in
both houses of Congress designed to clarify
the effect of recent legislation upon the status
of the 'gold clause' in public and private
obligations. This resolution has the support
of the administration.
"Since March 6, when the President declared
a bank holiday, transactions involving payments in gold have been brought under control
in order to protect and maintain the supply
which constitutes a reserve for the Nation's
currency. Gold is not now paid, nor is it

334

FEDERAL RESERVE BULLETIN

available for payment, upon public or private
debts.
"Recently the Thomas amendment to the
agricultural relief act has made all coins and
currencies of the United States legal tender
for the payment of every debt, public and
private. Due, however, to the language used,
doubt has arisen whether obligations expressed
to be payable in a particular kind of money,
such as gold coin, may be satisfied by payment
in other forms of legal tender.
"While the Supreme Court of New York is
reported to have held in a recent case that an
obligation calling for payment in gold coin
could be satisfied by payment of other lawful
forms of money, confusion may be created if
the existing legislation is differently construed
in other jurisdictions. One of the purposes of
the resolution is to remove any doubt and to
avoid confusion, so that debtors and creditors
may have a clear definition of their legal
position.
"Another purpose of the resolution is to make
clear that future obligations, public and private,
shall not contain the gold clause. The Thomas
amendment did not contain specific provision
to this effect. Such a provision is contained
in the resolution.
"The resolution makes it clear that all obligations, past and future, will be upon the same
footing."
Reports made upon this resolution by the
Committees on Banking and Currency of the
Senate and of the House of Representatives are
as follows:
[CALENDAR NO. 112.

SENATE REPORT NO. 99.

73D

Cong., 1st sess.]
UNIFORM V A L U E OF U N I T E D STATES
AND CURRENCIES

COINS

May 15 (calendar day, May 27), 1933.—Ordered to be
printed

Mr. Fletcher, from the Committee on Banking
and Currency, submitted the following report
to accompany S.J.Res. 56

JUNE 193a

STATEMENT

Certain questions of interpretation have
arisen with respect to the legislation empowering the President to prevent the withdrawal
and hoarding of gold and the provision in the
Thomas amendment making all coins and currencies legal tender for all debts. Additional
and immediate legislation is necessary to
remove the disturbing effect of this uncertainty
and to insure the success of the policy by closing
possible legal loopholes and removing inconsistencies.
(1) By the Emergency Banking Act and the
existing Executive orders gold is not now paid,
or obtainable for payment, on obligations, public or private. By the Thomas amendment
currency was intended to be made legal tender
for all debts. However, due to the language
used doubt has arisen whether it has been made
legal tender for payments on gold clause obligations, public and private. This doubt should
be removed. These gold clauses interfere with
the power of Congress to regulate the value of
the money of the United States and the enforcement of them would be inconsistent with
existing legislative policy. The Government
should have specific authority to control its
gold resources. Furthermore, private debtors
with gold clause obligations are entitled to
protection and a prompt and clear definition of
their legal position.
(2) Future issues of Government obligations
should be payable in lawful currency of the
United States and not in any specified coin.
To promise to do otherwise, under the present
circumstances, would open the Government to
severe and merited criticism. This, however,
requires legislation amending existing statutes
relating to Government obligations. It is essential that all obligations of the Government,
past and iuture, be treated alike.
(3) In making all coins and currencies of the
United States legal tender the Thomas amendment has created confusion, which was not intended, in the provisions of preexisting law
relating to gold coins when below standard
weight, subsidiary coins, and minor coins.
Philippine coins may also have been made legal
tender for payment of debts in the continental
United States contrary to the real intent.
These uncertainties should be corrected.

The Committee on Banking and Currency, to
whom was referred the joint resolution (S.J.Res.
56) to assure uniform value to the coins and
currencies of the United States, having considRECOMMENDATIONS
ered the same, report favorably thereon to the
01
Senate w i ^ ^ amendment and recommend
It is of the utmost importance that legislathat the joint resolution do pass.
tion along the lines of that suggested in the




JUNE

FEDERAL RESERVE BULLETIN

1933

joint resolution be enacted immediately because—
(a) It completely regularizes the present de
facto situation as to both public and private
debts.
(b) An offering of Treasury obligations must
be announced on June 5 and issued June 15.
It is essential that no question as to the good
faith of the Government be raised in connection
with this issue or future issues.
(c) It would greatly facilitate administration of the orders against hoarding.
(d) It would eliminate an existing uncertainty in business.
(e) It places old "gold clause'' and new
"legal tender" obligations on the same footing
in respect of payment.
(/) It would make certain of accomplishment the declared policy of the Congress.
REFERENCES TO STATUTES CONTAINING GOLD
CLAUSE

The act of February 4, 1910, provides:
That any bonds and certificates of indebtedness of
the United States hereafter issued shall be payable,
principal and interest, in United States gold coin of the
present standard of value. * * * (36 Stat. 192,
sec. 768, title 31, U.S.C.)

The second Liberty Bond Act, under which
bonds, notes, and certificates of indebtedness
are issued, provides:
The principal and interest thereof shall be payable
in United States gold coin of the present standard of
value. (Sees. 752 and 753, title 31, U.S.C.)

Similar provisions are contained in the following statutes: Sections 408, 744, 745, 746,
and 751, title 31, and section 760, title 39 and
section 447, title 12, United States Code.
[House Report no. 169. 73d Cong., 1st sess.]
UNIFORM VALUE OF COINS AND CURRENCIES
OF THE U N I T E D STATES

May 27, 1933.—Committed to the Committee of the
Whole House on the state of the Union and ordered
to be printed

Mr. Steagall, from the Committee on Banking
and Currency, submitted the following report
to accompany H.J.Res. 192
The Committee on Banking and Currency,
to whom was referred the resolution (H.J.Res.
192) to assure uniform value to the coins and
currencies of the United States, having considered the same, report favorably thereon and
recommend that the bill do pass.
177784—33




2

335

The resolution accomplishes three purposes:
(1) It declares that the clauses in public and
private obligations stating that they are payable in gold or a specific coin or currency are
contrary to public policy; (2) it provides that
obligations, public and private, expressed to be
payable in gold or in a specific coin or currency,
may be discharged dollar for dollar in legal
tender. It also provides that no future obligations, public or private, shall be expressed as
payable in any specific coin or currency; (3) it
makes certain technical amendments to the
Thomas amendment which are necessary to
carry out the intention of that legislation
regarding what shall be legal tender in the
United States.
1. The occasion for the declaration in the
resolution that the gold clauses are contrary to
public policy arises out of the experiences of
the present emergency. These gold clauses
render ineffective the power of the Government
to create a currency and determine the value
thereof. If the gold clause applied to a very
limited number of contracts and security issues,
it would be a matter of no particular consequence, but in this country virtually all obligations, almost as a matter of routine, contain
the gold clause. In the light of this situation
two phenomena which have developed during
the present emergency make* the enforcement
of the gold clauses incompatible with the public
interest. The first is the tendency which has
developed internally to hoard gold; the second
is the tendency for capital to leave the country.
Under these circumstances no currency system,
whether based upon gold or upon any other
foundation, can meet the requirements of a
situation in which many billions of dollars of
securities are expressed in a particular form of
the circulating medium, particularly when it is
the medium upon which the entire credit and
currency structure rests.
2. There can be no substantial question as to
the constitutional power of the Congress to
make this legislation applicable to all obligations, public and private, both past and future.
The power of Congress to issue a currency and
determine the value thereof and to provide for
the borrowing of funds by the Government is
express and undoubted. It is also undoubted
that Congress has all powers necessary to make
the exercise of these two express powers effective. Contracts of private individuals, past or
future, are valid and enforceable only insofar
as they do not conflict with public policy as
enunciated by Congress in the exercise of its
constitutional powers. When, therefore, as is
declared in this resolution, the enforcement or

336

FEDERAL RESERVE BULLETIN

making of gold-clause provisions obstructs the
proper exercise of the congressional powers,
such provisions must yield. Nor does the factthat outstanding obligations of the Government are expressed as payable in gold coin
impose a limitation, under the circumstances
obtaining, upon the exercise of the powers conferred by the Constitution. The Government
cannot, by contract or otherwise, divest itself
of its sovereign power. All contracts of the
Government are made in the light of this inalienable power to legislate as the public interest
may demand. It is too well settled to admit
of controversy that contracts or provisions of
contracts, even though not inconsistent with
public policy when made, may subsequently
become contrary to public policy, as authoritatively announced by the legislative branch of
the Government, and that, in such event, they
become invalid and unenforceable.
So far as the future is concerned the power to
borrow, both of the Government and of private
interests, will be seriously impaired unless outstanding obligations and future obligations are
placed upon the same footing in respect of the
medium of payment. Considerations of both
equity and practical necessity demand that this
be done, and it is the purpose of the resolution
to accomplish this end.
3. The second section of the resolution is a
clarification of a clause in the act approved
May 12, 1933. Under that act as passed, coins
of the Philippines would be legal tender in the
United States, and abrased gold coins would
be legal tender at their face value. This situation, which occurred through inadvertence,
should be corrected as is done by the resolution.
This legislation is complementary to the steps
already taken under the Emergency Banking
Act to protect the monetary system and is
essential for the accomplishment of national
recovery.
In conformity with 2a of rule XIII of the
House rules, there is herewith printed in full
paragraph (1) of subsection (b) of section 43
of the act entitled "An act to relieve the
existing national economic emergency by increasing agricultural purchasing power, to raise
revenue for extraordinary expenses incurred by
reason of such emergency, to provide emergency relief with respect to agricultural indebtedness, to provide for the orderly liquidation of joint-stock land banks, and for other
purposes", approved May 12, 1933, showing
the change made in the last sentence of paragraph (1) of subsection (b) of said section 43
by showing new matter printed in italics and




JUNE

1933

matter stricken out shown in brackets, as
follows:
ACT OF MAY 12, 1933
SEC. 43. Whenever the President finds, upon investigation, that (1) the foreign commerce of the
United States is adversely affected by reason of the
depreciation in the value of the currency of any other
government or governments in relation to the present
standard value of gold, or (2) action under this section
is necessary in order to regulate and maintain the
parity of currency issues of the United States, or (3)
an economic emergency requires an expansion of
credit, or (4) an expansion of credit is necessary to
secure by international agreement a stabilization at
proper levels of the currencies of various governments, the President is authorized, in his discretion—
(a) To direct the Secretary of the Treasury to
enter into agreements with the several Federal Reserve banks and with the Federal Reserve Board
whereby the Federal Reserve Board will, and it is
hereby authorized to, notwithstanding any provisions
of law or rules and regulations to the contrary, permit
such reserve banks to agree that they will, (1) conduct, pursuant to existing law, throughout specified
periods, open market operations in obligations of the
United States Government or corporations in which
the United States is the majority stockholder, and (2)
purchase directly and hold in portfolio for an agreed
period or periods of time Treasury bills or other
obligations of the United States Government in an
aggregate sum of $3,000,000,000 in addition to those
they may then hold, unless prior to the termination
of such period or periods the Secretary shall consent
to their sale. No suspension of reserve requirements
of the Federal Reserve banks, under the terms of
section ll(c) of the Federal Reserve Act, necessitated
by reason of operations under this section, shall require the imposition of the graduated tax upon any
deficiency in reserves as provided in said section ll(c).
Nor shall it require any automatic increase in the
rates of interest or discount charged by any Federal
Reserve bank, as otherwise specified in that section.
The Federal Reserve Board, with the approval of the
Secretary of the Treasury, may require the Federal
Reserve banks to take such action as may be necessary, in the judgment of the Board and of the
Secretary of the Treasury, to prevent undue credit
expansion.
(b) If the Secretary, when directed by the President, is unable to secure the assent of the several
Federal Reserve banks and the Federal Reserve Board
to the agreements authorized in this section, or if
operations under the above provisions prove to be
inadequate to meet the purposes of this section, or if
for any other reason additional measures are required
in the judgment of the President to meet such purposes, then the President is authorized—
(1) To direct the Secretary of the Treasury to
cause to be issued in such amount or amounts as he
may from time to time order, United States notes, as
provided in the Act entitled "An act to authorize the
issue of United States notes and for the redemption of
funding thereof and for funding the floating debt of
the United States", approved February 25, 1862, and
acts supplementary thereto and amendatory thereof,
in the same size and of similar color to the Federal
Reserve notes heretofore issued and in denominations
of $1, $5, $10, $20, $50, $100, $500, $1,000, and
$10,000; but notes issued under this subsection shall
be issued only for the purpose of meeting maturing

JUNK

FEDERAL RESERVE BULLETIN

1933

337

The principal and interest thereof shall be payable in
Federal obligations to repay sums borrowed by the
United States and for purchasing United States bonds United States gold coin of the present standard of value.
and other interest-bearing obligations of the United
States: Provided, That when any such notes are used The same provision appears in the second,
for such purpose the bond or other obligation so ac- third, and fourth Liberty Loan Acts and in
quired or taken up shall be retired and canceled. other loan laws since then.
Such notes shall be issued at such times and in such
Millions of our people bought these bonds
amounts as the President may approve but the aggregate amount of such notes outstanding at any time with this pledge. Whether all gave equal
shall not exceed $3,000,000,000. There is hereby weight to it is irrelevant where honor is inappropriated, out of any money in the Treasury not volved. The pledge alone counts though no
otherwise appropriated, an amount sufficient to enable more than one man gave it heed.
the Secretary of the Treasury to retire and cancel 4
As a matter of fact this pledge has been a
per centum annually of such outstanding notes, and
the Secretary of the Treasury is hereby directed to vital consideration not alone with public securiretire and cancel annually 4 per centum of such out- ties but also with a great number of corporate
standing notes. [Such notes and all other coins and
currencies heretofore or hereafter coined or issued by borrowings. Their total has been estimated at
or under the authority of the United States shall be a hundred billions in par value. Importance
has been attached to the gold promise by countlegal tender for all debts public and private.]

All coins and currencies of the United States (including
Federal Reserve notes and circulating notes of Federal
Reserve banks and national banking associations) heretofore or hereafter coined or issued, shall be legal tender
for all debts, public and private, public charges, taxes,
duties, and dues, except that gold coins, when below the
standard weight and limit of tolerance provided by law
for the single piece, shall be legal tender only at valuation
in proportion to their actual weight.
MINORITY VIEWS

This proposal has two elements. First, it
renounces obligations of the United States.
Secondly, it prohibits future obligations of the
same sort.
The second of these elements calls for no protest here. If in the judgment of the Treasury
future borrowings or issuance of currency
would better not be subject to payment or redemption in gold, very well. Questioning of
such judgment need not distract attention
from the far more important issue, that of the
public faith.
In 1869 it was enacted (remember that
"equivalent" means "equal work"):
The faith of the United States is solemnly pledged to
the payment in coin or its equivalent of all the obligations of the United States not bearing interest, known
as United States notes, and of all the interest-bearing
obligations of the United States, except in cases where
the law authorizing the issue of any such obligations has
expressly provided that the same may be paid in lawful
money or other currency than gold or silver.

Yet we are now asked to declare that because
such provisions "obstruct the power of the
Congress to regulate the value of the money of
the United States", the faith that we solemnly
pledged 64 years ago is to be repudiated.
What emergency can justify breaking the solemn pledge of a nation? Do "solemn" and
"pledge" mean nothing?
When the first Liberty bond law was enacted
in April of 1917, it said of the bonds:




less treasurers of universities, colleges, other
educational and philanthropic institutions, by
all sorts of men who are entrusted with investing the resources that support work for humanity. This includes the officers of our mutual
savings banks with their nine billion and more
of deposits, the life-insurance companies with
more than 120,000,000 policies outstanding,
and all other officials who must think of safety
first when exercising their trust. Shall the
solemn pledge to them be broken?
The good faith of a nation is its greatest asset.
We have boasted that in this no nation is our
superior. Upon it we have relied in our international relations. On the very eve of a
conference that bids fair to be of supreme consequence to the welfare of the world, we are
asked to replace good faith with bad faith, to
tell those with whom we confer that whatever
agreements we make may be repudiated next
day or next year. If we break solemn pledges
to our own, what may be expected of those to
others?
We are asking sundry nations to pay us what
they owe. Will they be more likely to make
good their promises if we set them the example
of repudiation?
That is the right name for it, repudiation,
and this bill ought to be known throughout
history as the repudiation bill of 1933.
We are making huge loans to our own people,
to States, to cities, to various kinds of governmental agencies. If we repudiate, shall we
expect them to pay?
It is true that legal casuistry, in England and
in one of our own subordinate courts, has recently perverted the plain meaning of language
in order to give a color of defense to repudiation.
Not all the subtleties of all the lawyers in the
world can change the fact that both parties
to these contracts understood the word&Ho

338

FEDERAL RESERVE BULLETIN

mean what they said, what it has been hitherto
accepted that they meant.
Our Constitution forbade the States to impair
the obligations of contracts. For some unknown reason the fathers did not impose the
same prohibition on the Nation. But the moral
principle involved is the same. The sanctity
of contracts is the cornerstone of our civilization. To violate that sanctity is to invite ruin.
The circumstances under which this expression of views was prepared made it impossible
to sumit them to other members of the committee, but I am sure I am not alone in entertaining them.
ROBERT LUCE.

The resolution was passed by both Houses,
and was approved by the President on June 5.
The text of the resolution is given below:
[PUBLIC RESOLUTION—No. 10—73D CONGRESS]
IHJ.Ees. 192]

JOINT RESOLUTION
To assure uniform value to the coins and currencies
of the United States

Whereas the holding of or dealing in gold affect
the public interest, and are therefore subject
to proper regulation and restriction; and
Whereas the existing emergency has disclosed
that provisions of obligations which purport
to give the obligee a right to require payment in gold or a particular kind of coin or
currency of the United States, or in an
amount in money of the United States measured thereby, obstruct the power of the
Congress to regulate the value of the money
of the United States, and are inconsistent
with the declared policy of the Congress to
maintain at all times the equal power of
every dollar, coined or issued by the United
States, in the markets and in the payment
of debts. Now, therefore, be it
Resolved by the Senate and House of Representatives of the United States of America in
Congress assembled, That (a) every provision
contained in or made with respect to any obligation which purports to give the obligee a
right to require payment in gold or a particular
kind of coin or currency, or in an amount in
money of the United States measured thereby,
is declared to be against public policy; and no
such provision shall be contained in or made
with respect to any obligation hereafter
incurred. Every obligation, heretofore or
hereafter incurred, whether or not any such
provision is contained therein or made with




JUNE

1933

respect thereto, shall be discharged upon payment, dollar for dollar, in any coin or currency
which at the time of payment is legal tender
for public and private debts. Any such provision contained in any law authorizing obligations to be issued by or under authority of the
United States, is hereby repealed, but the repeal of any such provision shall not invalidate
any other provision or authority contained in
such law.
(b) As used in this resolution, the term " obligation" means an obligation (including every
obligation of and to the United States, excepting currency) payable in money of the United
States; and the term "coin or currency" means
coin or currency of the United States, including
Federal Reserve notes and circulating notes of
Federal Reserve banks and national banking
associations.
SEC. 2. The last sentence of paragraph (1)
of subsection (b) of section 43 of the act entitled "An act to relieve the existing national
economic emergency by increasing agricultural
purchasing power, to raise revenue for extraordinary expenses incurred by reason of such
emergency, to provide emergency relief with
respect to agricultural indebtedness, to provide
for the orderly liquidation of joint-stock land
banks, and for other purposes", approved
May 12, 1933, is amended to read as follows:
"All coins and currencies of the United
States (including Federal Reserve notes and
circulating notes of Federal Reserve banks
and national banking associations) heretofore
or hereafter coined or issued, shall be legal
tender for all debts, public and private, public
charges, taxes, duties, and dues, except that
gold coins, when below the standard weight
and limit of tolerance provided by law for the
single piece, shall be legal tender only at
valuation in proportion to their actual weight."
Approved June 5, 1933, 4:40 p.m.
The principal changes in central gold reserves of European countries during the latter
part of April and the early part
of M a
J w e r e l o s s e s o f $67,000,000 by Switzerland, $37,000,000
by Netherlands, and $9,000,000 by Germany,
and a gain of $11,000,000 by Italy. Reserves
in England, which had a considerable growth
earlier in the year, showed little change for the
period, and the gold outflow from France also
ceased.

JUNE

339

FEDERAL RESERVE BULLETIN

1933

GOLD RESERVES OF SELECTED CENTRAL BANKS
[In millions of dollarsl
Change from—
Central bank of—

Date,
1933

May
May
May
May
May
May
May

England
France
Germany
Italy
Belgium
Netherlands.
Switzerland. .

31
26
31
20
18
22
23

Gold reserves

*907
p 3,173
372
336
407

Month
before

+2
+3
-9

i
-37
-67

Year
before
+281
+58
-117
+52
+20
-44
-83

v Preliminary,

The Bank of England purchased £394,000
($1,900,000) of gold in May. From the beginning of February through
England
April, the months immediately
preceding, the bank had acquired reserves at the average rate of about
£19,800,000 ($96,600,000) a month. There
was a heavy transfer of funds from bankers'
to Government deposits during the past
month, principally in the week ending May 31
when the British Treasury was preparing for

Dollar quotations on sterling averaged $3.93
during May, as compared with $3.58 during
April. In terms of gold currencies, however,
sterling showed little change. On May 4 the
borrowing resources of the exchange equalization account were increased by £200,000,000.
The account was established by the British
Government in June 1932 with original powers
to borrow up to £150,000,000 for the purpose of
dealing in gold and foreign currencies in order
to limit fluctuations in the pound.
Gold stock of the Bank of France increased
84,000,000 francs ($3,300,000)
Bank of France
in the 4 weeks ending May 26.
On that date the bank's holdings amounted to
80,950,000,000 francs ($3,173,000,000) as compared with the peak of 83,359,000,000 francs
($3,268,000,000) reached at the beginning of
December 1932. Notes returning from circulation in the past month went to increase
"other" deposits at the bank. These deposits,
which include reserve balances of the French
BANK OF FRANCE
[In millions of francs; figures preliminary]

BANK

OF

ENGLAND

Change from—

[In thousands of pounds sterling; figures preliminary]
M a y 26,
1933

Change from—
M a y 31,
1933

Gold
Discounts and advances
Securities
Bankers' deposits
..
Public deposits
Other deposits
Notes in circulation

186,333
11, 249
339,809
77, 472
33, 246
39, 536
374,063

Apr. 26,
1933
+394
-382
+3,468
-23,464
+22,464
+2,431
+2,128

June 1,
1932
+57,716
-1,233
- 5 , 295
-12,485
+14,693
+5, 386
+18, 649

large payments of interest to be made on the
public debt on June 1. Because of the anticipation of these payments, the low level to
which bankers' balances were reduced by the
Treasury's accumulation of funds was considered temporary by the money market, as
indicated by the continued ease of shortterm rates. The rate on prime bankers'
acceptances remained at about one half of 1
percent.




Gold
Foreign exchange
Domestic discounts and advances.
Government deposits
Other deposits
Notes in circulation

80,950
3,887
6,124
2,265
18,393

83, 266

Apr. 28,
1933

+84
+41

-331
-75
+1,212
-1,726

May 27,
1932
+1,480
-5,114
-736
-1,167
-5,735
+1,848

commercial banks, have decreased substantially
over the past year, chiefly as a result of the
purchase of foreign exchange from the Bank of
France.
At the end of April the French Government
obtained a credit of £30,000,000 from a syndicate of London banks, to run for a maximum
period of 6 months and to bear interest at the
rate of 2}{ percent per annum. In granting
the credit the participating London banks
agreed to purchase 3-month Treasury bills
from the French Government renewable at
their maturity for another 3 months.

340

FEDERAL RESERVE BULLETIN

Total gold and foreign-exchange reserves of
the Reichsbank declined 61,000,000 reichmarks
($14,500,000 at par of exchange)
Reichsbank
in the month ending May 31.
Currency returning from circulation was used by the market to purchase reserves from the bank, to build up deposits, and
to repay discounts and advances.
Reserve losses by the Reichsbank have been
heavy in the current year. In 1932 the bank's
reserves decreased by 236,000,000 reichsmarks
($56,200,000); and in the first 5 months of this
year they fell by an additional 471,000,000
reichsmarks ($112,100,000), largely as a result
of the bank's repayment of the credit granted
by a group of central banks in June 1931.
This credit, originally for an amount of $100,000,000, was reduced by the end of 1932 to
$86,000,000. On March 5, 1933, it was further
reduced to $70,000,000, and in the first half of
April the credit was entirely liquidated. The
decline in Reichsbank reserves has also been
partly due to the progressive diminution in
the excess of merchandise exports from Germany which has required the bank to draw in-

JUNE 1933

gold and foreign-exchange reserves would be
permitted.
Appointment of New Members of Federal Reserve
Board

On June 13, 1933, Mr. J. J. Thomas, of
Nebraska, and Mr. M. S. Szymczak, of Illinois, were appointed as members of the Federal Reserve Board for the unexpired portions
of the 10-year terms ending January 24, 1943,
and April 18, 1943, respectively.
Changes in Discount Rates

The rate on rediscounts for and advances to
member banks under sections 13 and 13a of the
Federal Reserve Act was reduced from 3 to
2% percent at the Federal Reserve Bank of New
York, effective May 26, and from 3K to 3 percent at the Federal Reserve Bank of Boston,
effective June 1, at the Federal Reserve Bank of
Chicago, effective May 27, at the Federal Reserve Bank of San Francisco, effective June 2,
at the Federal Reserve Banks of Philadelphia
and St. Louis, effective June 8, and at the
Federal Reserve Bank of Cleveland, effective
June 10.
Changes in Foreign Central Bank Discount Rates

REICHSBANK

The following changes in discount rates during
the month ended June 1, 1933, have been
reported by central banks in foreign countries:

[In millions of reichsmarks;figurespreliminary]
Change from—

May 31,
1933
Apr. 29, May 31,
1933

Gold
Foreign-exchange reserves..
Nonreserve cash.
Discounts and advances.-Deposits
Notes in circulation

372
77
238
3,306
439
3,469

-39
-23
+64
-20
+33

1932

-491
-52
+10
+40

+8

-492

creasing amounts from its stock of gold and
foreign exchange in order to maintain service on
the foreign debt. By May 31 the bank's reserves had been reduced to 449,000,000 reichsmarks ($107,000,000). Dr. Hjalmar Schacht,
president of the Reichsbank, announced on
June 2 that no further decrease in the bank's




Bank of Danzig, May 6, from 4 to 3 percent.
Danish National Bank, June 1, from 3% to 3 percentNetherlands Bank, May 11, from 2>4 to 3}£ percent.
Bank of Norway, May 24, from 4 to 3# percent.
South African Reserve Bank, May 15, from 4 to 3>i
percent.
Bank of Sweden, June 1, from 3H t o 3 percent.
Member Banks Licensed and Not Licensed

There is given below a table showing, as of
May 31, the number of all member banks, and
indicating the number of these banks that had
received licenses to reopen from the Secretary
of the Treasury and those that had not received such licenses on that date. There is also
shown the amount of deposits held by these
banks on December 31, 1932, the latest date
for which such figures are available.

341

FEDERAL RESERVE BULLETIN

JUNE 1933

MEMBER BANKS LICENSED AND NOT LICENSED AS OF
MAY 31, 1933

Number of banks
Federal Keserve
district

All member banks:
Boston
New York
Philadelphia
Cleveland
Eichmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco. __
Total
National banks:
Boston
New York
Philadelphia. _..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City

367
827
685
634
394
320
772
404
530
771
565
430

338
677
621
562
353
279
613
340
495
744

Deposits on Dec. 31, 1932, of
banks licensed and not licensed on M a y 31, 1933 (in
thousands of dollars)

MEMBER BANKS LICENSED AND N O T LICENSED AS OF

MAY 31, 1933—Continued
Number of banks
Federal Reserve
district

Deposits on Dec. 31, 1932, of
banks licensed and not licensed on May 31, 1933 (in
thousands of dollars)

National banks311
56 2,044,222 1,916, 703 127, 519
Continued.
701 126 10,315,009 10,088,135 226,874
683,686
678, 761
514
487
Dallas
4,925
587
2,181,481 2,025, 208 156,273
303
2, 253,837 2,207, 200
San Francisco
355
46, 637
482 152 2,545,930 2,030,086 515,844
308
86 1,041,489
854,092 187,397
Total
5,891 4,862 1,029 17,899,185 16, 743,906 1,155,279
278
42 745,757
705,191 40, 566
479 293 3, 051,462 2,685, 317 366,145 State bank mem330
840,940 73,358
74 914,298
bers:
465
690,845 33, 314, Boston
65 724,159
25
486, 430
450,855
29
35,575
695
991,764 71,869
76 1,063,633
142
5,793,981 5,757,546
150
36,435
New York
536
5,098
719,778
29 724,876
57
640,255
64
669, 747
29,492
Philadelphia
364
2,864, 505 2,812, 335 52,170
60
854,699 358,716
72
1,213,415
Cleveland
34
225,682
41
301,953
76, 271
Richmond
5,536 1,163 28,216,821 26,360,394 1,856,427
39
41
87,048
71, 623
15,425
Atlanta
92
159
657,193
540,617 116, 576
Chicago
52 1, 557,792 1, 465,848 91,944
53
286
64
306,331
279,379
26,952
St. Louis
35
559 118 4, 521,028 4, 330, 589 190,439
35
33, 669
33,669
Minneapolis
91 1, 511, 734 1,384,953 126, 781
27
530
27
116,011
116,011
Kansas City
422 140 1, 332, 515 1,175,387 157,128
51
41,190
41,017
173
Dallas
79 739, 536 628,410 111, 126
274
75
610,668
605,135
5,533
San Francisco
40 658, 709 633, 568 25,141
239
387 226 2, 394, 269 2,144, 700 249, 569
674
134 10, 317,636
701,148
Total
63 607,967
277
561, 561 46,406
65 690,490
430
657,176 33,314
1
76 947, 622 875, 753 71,869
Exclusive of banks placed in liquidation or receivership.

QUARTERLY REPORT OF THE RECONSTRUCTION FINANCE CORPORATION

On May 9 the Reconstruction Finance Corporation made its report to Congress covering
operations for the quarter ended March 31,
1933, and for the period from the organization of the Corporation on February 2, 1932,
OPERATIONS

to March 31, 1933. In addition to the text,
the report contains tables covering various
phases of the Corporation's operations. A
summary table derived from table 1 of this
report is given herewith:

OF THE RECONSTRUCTION FINANCE CORPORATION—AGGREGATE LOANS AND PREFERRED
SUBSCRIPTIONS, F E B . 2, 1932, TO MAR. 31, 1933
Repaidl

Authorized
Under sec. 5 of the Reconstruction Finance Corporation Act:
Banks and trust companies (including receivers)
_
Building and loan associations..
Insurance companies
Mortgage loan companies..
Credit unions
_
_._
Federal land banks.
Joint-stock land banks
Federal intermediate credit banks
Agricultural credit corporations
Regional agricultural credit corporations
Livestock credit corporations
Railroads (including receivers)
Total, sec. 5 of the Reconstruction Finance Corporation Act
Under the Emergency Relief and Construction Act of 1932:
Self-liquidating projects under sec. 201 (a), title II
Financing of agricultural commodities and livestock, sec. 201 (d), title II
Amounts made available for relief and work relief, sec. 1, title I I
Total, Emergency Relief and Construction Act of 1932
Under sec. 304, title II of the Emergency Banking Act of Mar. 9,1933:
Loans on the preferred stock of banks and trust companies
Subscriptions for preferred stock of banks and trust companies.
Total, sec. 304 of the Emergency Banking Act
Grand total
1
2

Advanced

$1, 239, 392, 223
110,073,636
92,828,063
133, 560,337
492,001
30,500,000
11,292,823
9, 250,000
4,404,007
65,097,596
13, 313,303
365,782,843

$1,035,060,418
103,066,291
78,935,612
128,829,174
449,653
18,800,000
5,322,974
9,250,000
3,859,950
58, 614,629
11,928, 531
331,197,888

$339,579,405
16,045,422
6,621,711
15,305,289
13,158

2,075,986,831

1,785,315,120

418, 316,605

197,978,415
55,555,723
242,491, 200

20,684,000
1, 651,596
201, 374,182

415, 724

496, 025,338

223, 709,778

415,724

1, 250,000
13,682,500

250,000
12,500,000

14,932, 500

12, 750, 000

3 2, 586,944, 669

2,021,774,898

78,639
9,250,000
1,531,104
2, 901,889
6,814,005
20,175,985

418,732, 329

STOCK

Outstanding
M a r . 31, 1933

$695,481,013
87,020,870
72,313,901
113, 523,885
436,495
18,800,000
5,244,335
2, 328,846
55, 712, 740
5,114,526
311,021,904
1, 366,998, 515
20,684,000
1, 235,872
201,374,182
223, 294,054
250,000
12,500,000
12, 750,000
1, 603,042, 569

Exclusive of repayments unallocated, pending advices; as of Mar. 31,1933.
Includes $66,871,787 authorized to aid in the reorganization or liquidation of closed banks. Does not include agreements to loan $45,700,000,
or to subscribe to preferred stock up to $7,948,000, upon the performance of specified conditions.
3
Includes loans authorized which were subsequently withdrawn or canceled aggregating $167,677,642, of which $146,186,025 was for banks and
trust companies.




342

FEDERAL RESERVE BULLETIN

JUNE

1933

NATIONAL SUMMARY OF BUSINESS CONDITIONS
[Compiled May 23 and released for publication May 25]

Industrial activity increased considerably
during April and the first 3 weeks of May and
wholesale prices of many leading commodities
advanced, particularly in the latter part of
April and the early part of May. Following
the imposition of an embargo on gold on
April 20 the exchange value of the dollar
declined and on May 20 was 87 percent of its
gold parity.
Production and employment.—Volume of
industrial production, as measured by the
Board's seasonally adjusted index, increased
from 60 percent of the 1923-25 average in
March to 67 percent in April, as compared with
63 percent a year ago and a low of 58 percent
last July. Activity at steel mills increased
from 15 percent of capacity in March to 25
percent in April and there was a further
increase in the first 3 weeks of May. Increased
activity in the steel industry reflected chiefly
increased demand from automobile producers
and from miscellaneous sources, while demand
from the railroad and construction industries
continued at low levels. At textile mills and
shoe factories, production increased considerably during this period. Output of
petroleum fluctuated widely, declining in the
middle of April and subsequently increasing to
a high level.
Volume of factory employment and pay rolls
increased between the middle of March and the
middle of April by an amount somewhat smaller
than the decrease in the preceding month.
Value of construction contracts, as reported
by the F. W. Dodge Corporation, continued at
previous low levels in April, but showed a considerable increase in the first half of May.
Total value of awards in these six weeks was
considerably smaller than in the corresponding
period a year ago.
Distribution.—Freight traffic, which was at a
low level in March, increased during April and
the first 2 weeks of May by more than the
usual seasonal amount, reflecting chiefly large
increases in shipments of miscellaneous products, grains, and livestock.
Department-store sales increased sharply
from March to April, and the total for these 2
months showed slighly more than the usual
seasonal increase over the volume of sales in
January and February.
Wholesale prices.—During April, particularly in the latter part of the month, there were
substantial increases in the wholesale prices of




grains, flour, sugar, textile raw materials and
finished products, hides, pig iron, nonferrous
metals, and rubber. Prices of most of these
commodities continued to advance rapidly in
the first 2 weeks of May, and showed little
change in the third week of the month. Prices
of livestock, which did not advance in April,
increased considerably in the first 3 weeks of
May. Silver prices, after advancing by a substantial amount in the latter part of April,
subsequently showed a decline, and petroleum
prices also were reduced.
Foreign exchange.—During the 4 weeks following the imposition of the embargo on gold
the exchange value of the dollar declined to 83
percent of its gold parity on May 5, but subsequently rose to 87 percent on May 20. The
noon buying rate on cable transfers on the
French franc rose from 3.98 cents on April 18
to 4.50 cents on May 20, and the rate on the
English pound rose from $3.49 to $3.87.
Bank credit.—During the 4 weeks ending
May 17 about $215,000,000 of additional currency was returned to the reserve banks, and
on that date all but $200,000,000 of the
$1,930,000,000 withdrawn by banks and individuals between February 1 and March 13 had
been returned. Funds arising from the return
of currency during the 4-week period were
used to reduce reserve bank holdings of acceptances by an additional $130,000,000 and to
liquidate $85,000,000 of member bank indebtedness at the reserve banks. As the result of
an addition of about $100,000,000 to the
reserve banks' holdings of gold, and a further
reduction of Federal Reserve notes in circulation, the reserve ratio of the reserve banks
rose considerably between April 19 and May
17. The decline in Federal Reserve notes
reflected in part an increase of $50,000,000 in
Federal Reserve bank notes in circulation.
Loans and investments of reporting member
banks in New York City increased by about
$400,000,000 between the middle of April and
the middle of May, reflecting chiefly a growth
of $200,000,000 in loans on securities and of
$140,000,000 in investments in United States
Government securities. Net demand deposits
also increased by about $400,000,000, of which
about one third represented a further growth
of bankers' balances.
Money rates in the open market continued
at low levels.

JUNE

343

FEDERAL RESERVE BULLETIN

1933

RESERVE BANK CREDIT OUTSTANDING AND PRINCIPAL FACTORS IN CHANGES
Weekly Basis Wednesday Series

MILLIONS OF DOLLARS

MILLIONS OF DOLLARS

7000

7000

5000

5000

4000
5000

4000
5000

GOLD STOCK

4000

3000
3000

3000
3000

MEMBER BANK
DANtV
RESERVE BALANCES
IALANCES

2000

2000

1000
4000

1000
4000

3000

3000

1000

1928




1929

1930

1931

1932

Based on Wednesdayfigures;latestfiguresare for May 31.

1933

344

FEDERAL RESERVE BULLETIN
FEDERAL

RESERVE

BANK

JUNE 1933

CREDIT

RESERVE BANK CREDIT OUTSTANDING AND FACTORS IN CHANGES
[In millions of dollars]
Averages of daily figures
Reserve bank credit outstanding

Factors of decrease

Factors of increase

Month or week
Bills discounted

United
States
Government securities

Bills
bought

Other
reserve
bank
credit

Total

NonMone- Treasury Money Member member
bank
tary gold currency in circu- reserve deposits,
stock
adjusted
lation
balances
etc.

Unexpended
capital
funds

4,452
4,384
4,372
4,381
4,273
3,956
3,941
4,031
4,140
4,226
4,292
4,429

1,773
1,787
1,792
1,789
1,788
1,787
1,780
1,796
1,826
1,886
1,917
1,915

5,645
5,627
5,531
5,452
5.456
5,530
5,751
5,720
5,685
5,643
5,642
5,699

1,979
1,907
1,899
1,996
2,138
2,062
2,003
2,073
2,181
2,307
2,378
2,435

113
73
37
63
77
65
46
40
35
38
40
43

353
349
349
353
350
348
343
347
347
355
360
359

2,511
2,286

4,547
4,491
4,260
4,301
4,313

1 901
1,891
1,897
1,915
1,930

5,892
6,998
6,137
5,876

2,516
2,291
1,914
2,086
2,125

79
134
156
173

351
344
344
348
355

1,853
1,829
1,793
1,770

2,153
2,127
2,091
2,080

4,526
4,548
4,558
4,554

1,902
1,905
1,908
1,897

5,669
5,616
5,616
5 620

2,513
2,563
2,526
2 487

352
353
351
350

31
31
45
181

1,763
1,775
1,809
1,833

2,074
2,078
2,155
2,357

4,549
4,530
4,505
4,450

1,886
1,892
1,871
1,892

5,664
5,717
5,850
6,032

2,426
2,369
2,256
2,235

350
346
343
342

847
1,421
1,184

361
417
400
356

1,848
1,876
1,907
1,882

3,056
3,661
3,476
2,931

4,333
4,244
4,251
4,263

1,922
1,922
1,920
1,871

6,805
7,532
7,260
6,643

2,065
1,803
1,898
1,952

143
140
129

345
349
349
341

April 1 April 8...
April 15..
April 22_.
April 29..

524
432
433
420
411

316
288
244
208
180

1,846
1,838
1,837
1,837
1,837

2,688
2,570
2,535
2,492
2,444

4,270
4,283
4,301
4,312
4,310

1,864
1,893
1,911
1,929
1,927

6,376
6,271
6,172
6,085
6,015

1,973
2,002
2,083
2,136
2,130

141
138
144
157
181

332
335
348
355
355

May6._
May 13_
May 20_
May 27.

404
343
331
314

148
115
81
46

1,837
1,837
1,843
1,851

2,407
2,311
2,272
2,224

4,311
4,312
4,313
4,314

1,873
1,910
1,933
1,972

5,972
5,910

2,080
2,090
2,126
2,177

184
178
175
164

355
355
354
354

848
714
605
486
495
523
451
387
328
313
282

February
February
February
February

4
11
18. _.
25...

March 4
March 1 1 —
March 18—
March 25—

1,865
1,785
1,652
1,694
1,960
2,262
2,422
2,353

102
379
230

1,806
1,804
1,875
1,837
1,846

2,110
2,224

33
32
32
31

256
283
335

Week ending (Saturday)1933—January 7
January 14
January 21
January 28

759
743
809
1,014
1,413
1,697
1,818
1,850
1,848
1,851
1,851
1,854

245
249
251
267

1933—January
February. _
March
April
May

221
151
105
52
41
50
60
37
34
34
34
34

255
307
994
425

1932—January
February __
March
April
May
June
July
August
September.
October....
November.
December..

2,231
2,211
2,192

5,815

End of month series
1932
Dec.
31

1933

1933

Jan. Feb.
28

Mar.
31

Apr.
30

274
582 426 435
Bills discounted
,
305
171
31
Bills bought
United States Government se1,855 1,763 1,866 1,838 1,837
curities..
22
16
Other reserve bank credit
10

Total reserve bank credit...
Monetary gold stock
_
Treasury currency adjusted

Wednesday series

May
31
302
20

2,145 2,077 2,794 2,572 2,459 2,218
4,513 4,553 4,379 4,282 4,312rt,315
1,923 1,872 1,939 1,887 1,907 1,954

5,675 5,645 6,546 6,320 6,003 *5,813
Money in circulation.
Member bank reserve balances. 2,509 2,446 2,141 1,949 2,132 2,167
43
64
143 188 155
Nonmember deposits, etc
80
354
346
346
Unexpended capital funds
355 353

i Less than $500,000.




Preliminary.

Apr. May May May May May
10
24
31
26
Bills discounted...
Bills bought
United States Government securities.
Other reserve bank credit

330 312 302
43
20
78
1,837 1,837 1,837 1,837 1,862 1,890
9
12
15

Total reserve bank credit
Monetary gold stock
Treasury currency adjusted

2,412 2,396 2,297 2,254 2,219 2,218
4,310 4,312 4,313 4,313 4,314 4,315
1,935 1,818 1,905 1,929 1,969 1,954

385
177

400
144

113

Money in circulation
5,994 5,954 5,892 5,852 5,795 5,813
Member bank reserve balances.. 2,136 2,034 2,089 2,114 2,194 2,167
Unexpended capital funds, nonmember bank deposits, etc
527 538 533 529 514 508
Back figures.—See Annual Report for 1931 (tables 1-5).

345

FEDERAL RESERVE BULLETIN

JUNE 1933

RESOURCES AND LIABILITIES OF FEDERAL RESERVE BANKS IN DETAIL; ALSO FEDERAL
RESERVE NOTE STATEMENT AND FEDERAL RESERVE BANK NOTE STATEMENT
[In thousands of dollars]
May 31,1933 Apr. 30, 1933 May 31,1932
EESOURCES

Gold with Federal Reserve agents
Gold redemption fund with United States Treasury
Gold held exclusively against Federal Reserve notes.
Gold settlement fund with Federal Reserve Board
Gold and gold certificates held by banks
Total gold reserves
Other cash J
Total gold reserves and other cash
Redemption fund—Federal Reserve bank notes.
Bills discounted:
For member banks
For intermediate credit banks
For nonmember banks, etc
Total bills discounted.
Bills bought:
Payable in dollarsBought outright
J
Under resale agreement
...
Payable in foreign currencies
Total bills bought
United States Government securities:
Bought outright
Under resale agreement
Total United States Government securities
Other reserve bank credit:
Federal intermediate credit bank debentures
Municipal warrants
Due from foreign banks
Reserve bank float (uncollected items in excess of deferred availability items) _
Total reserve bank credit outstanding
_
Federal Reserve notes of other reserve banks
Uncollected items not included in float
Bank premises
All other resources
Total resources.
Federal Reserve notes:
Held by other Federal Reserve banks.
Outside Federal Reserve banks
Total notes in circulation
Federal Reserve bank notes in actual circulation.
Deposits:
Member bank—reserve account
Government

Foreign bank
Special deposits:
Member bank
Nonmember bank
Other deposits
Total deposits
Deferred availability items
Capital paid in
Surplus
All other liabilities

...

Total liabilities
Contingent liability on bills purchased for foreign correspondents.

2,813,639
44,353
2,857,992
409,834
252,072
3, 519,898
286, 770
3,806,668
6,242

2,648, 692
62,115
2,710,807
349,972
355, 628
3,416,407
310,694
3,727,101
3,318

2,100,537
41,129
2,141,666
326,185
322,435
2,790,286
262,958
3,053,244

300,843

433, 579

301,974

435,010

489,494
408
172
490,074

12,881

163,527

4,690

6,981
19,862

7,181
170,708

~30~837
• 35,527

1,889, 278
300
1,889, 578

1,836,488
800

4,823
3,815
2 2,035
2, 218,017
15,143
318,082
54,255
48,020
6,466,427

5,726
3,656
6,738
2,459,126
20,850
295,372
54,185
46,103
6,606,055

5,285
4,643
10,946
2,095,644
11,585

15,143
3,187,959
3,203,102
96,280

20,850
3,407,061
3,427,911
47,808

11,585
2, 560,631
2,572,216

2,166,721
72,328
7,848

2,132,389
59,197
29,928

2,113,487
17,271
74,405

83, 637
18,059
45,180
2,393, 773
318,082
150, 271
278, 599
26,320
6,466, 427
35,731

81,909
16,699
59,640
2,379,762
295,372
150,171
278,599
26,432
6, 606,055
40,060

34,431
2,239,594
306,583
154,801
259,421
33,042
5,565, 657
182,771

3, 436,872

3,678,762

2,765,381

2,813,639
190,397
480,900
3,484,936

2,648,692
434,778
639,500
3,722,970

2,100,537
484,733
204,700
2,789,970

300
1, 549,169

58,084
40,517
5,565, 657

FEDERAL RESERVE NOTE STATEMENT

Federal Reserve notes:
Notes issued to Federal Reserve banks by Federal Reserve agents..
Collateral held by agents as security for notes issued to banks:
Gold
Eligible paper
United States Government securities
Total collateral..
FEDERAL RESERVE BANK NOTE STATEMENT

Notes issued to Federal Reserve banks (outstanding).
Collateral pledged against outstanding notes:
Discounted and purchased bills
United States Government securities
Total collateral..
1
2

" Other cash" does not include Federal Reserve notes or a bank's own Federal Reserve bank notes.
Excess of deferred availability items over uncollected items.




123,134

67,374

26, 039
136,274
162,313

40,800
67,854
108,654

346

FEDERAL RESERVE BULLETIN

JUNE 1933

ANALYSIS OF CHANGES IN MONETARY GOLD
STOCK

GOLD MOVEMENTS TO AND FROM UNITED
STATES

[In millions of dollars]

[In thousands of dollars]

Analysis of changes

1933

Gold

stock
at end Increase
Net re- Domesof
in stock Net gold lease
tic promonth during import from ear- duction,
month
mark i
etc»

Month

1932—January „—.-.._>
February.---.
March
April
May
June
July
August
September
October
November _.—.._
December
Total (12 mos.)_.
1933—January
February
March.
April

- >.

May p

4,553
4,380
4,282
4,312
4,315

Total (5 mos.)

-44.2
-62.3
36.0
-23.1
-214.1
-233.9
58.0
111.7
104.8
70.8
75.6

—73.0
-90.6
—24.7
-30.2
-195.5
—206.0
-3.4
6.1
27.9
20.6
21.7
100.9

25.4
26.4
58.3
4.0
-22.1
—28.8
56.2
100.5
72.3
45.8
48.6
•71.0

3.4
1.9
2.4
3.2
3.6
0.9
5.2
5.1
4.6
4.5
5.3
1.6

52.9

4,416
4,354
4,390
4,367
4,152
3,919
3,977
4,088
4,193
4,264
4,340
4,513

-446.2

457.5

41.6

40.0
-173.4
-97.2
29.5
3.7

128.5
«17.8
< -22.1
-10.0
-21.8

» -91.5
-178.3
-100.1
33.7
22.1

3.0
-12.9
25.0
5.7
3.3

-197.5

92.4

-314.1

24.1

May
(preliminary)

From or to—

Exports

Imports

Exports

Imports

15,050
100

Imports
Belgium ._
England
France ._
Germany
Netherlands _
Portugal
Switzerland
Canada.
Central America
Mexico._
Argentina
Colombia . __
Ecuador
Peru
Uruguay
Venezuela
Australia __ . . __ _
British India
China and Hong
Kong
Duth East Indies
Japan
Philippine Islands
All other countries *.

JanuaryApril

April

9
18

2,200
9,010

55,202
30,044
1,071
19,347

724
331
66
488
4

4

Exports

18,284
526
2,177

79912,768
16,885
1,800
9,150
2,295
54
20
15

91
238
704

2
192
864
134
396
1,281
125
2,973
478
274

187

504
2,725
25,629
12,728
686
6,702
1,737
2,193

150

i Gold released from earmark at Federal Reserve banks less gold placed
under earmark.
2 22,462
157
6,100
4,803
» This figure, derived from preceding columns, represents the excess of
domestic production over nonmonetary consumption of gold—chiefly
66,399Total
3 344 3 22,114
6,769 16,741 180,593
consumption in the arts. In any given month, however, it may be predominantly affected by the fact that on the final day of the month (a)
gold bullion or foreign gold coin recently imported may not yet have
1 Includes all movements of unreported origin or destination.
reached a reserve bank or the Treasury, and (6) gold bullion recently
2 $22,462 exported to Italy.
withdrawn from stock for export may not yet have been actually ex3 At New York—imports, $157,000, exports, $22,114,000. Elsewhere,
ported. The figures are subject to certain unavoidable inaccuracies imports $187,000.
In 1official reports of gold imports and exports.
Allowance has been made for gold earmarked at the Bank of England
for account of the Federal Reserve Bank of New York.
* Differs from Department of Commerce figure since $8,900,000 declared for export on Feb. 28 was not actually taken from the Federal
Reserve Bank of New York until Mar. 1.
v Preliminary figures.
Backfigures.—SeeAnnual Report for 1931 (table 30).

KINDS OF MONEY IN CIRCULATION
[Money outside Treasury and Federal Reserve banks. In millions of dollars!

End of month

Total

Gold
coin

Stand- Silver Treas- SubGold
United Federal Federal Naard
ury
certifi- silver certifi- notes sidiary Minor States Reserve Reserve tional
coin
bank bank
cates dollars cates of 1890 silver
notes notes notes notes

1932—January_ _.
February..
March
April
May
June
July
August
September.
October. _.
November.
December.

5,641
5,604
5,459
5,465
5,480
5,695
5,726
5,692
5,653
5,628
5,648
5,675

407
406
404
411
435
453
454
449
445
445
454
468

850
820
779
758
735
716
694
669
644
624
635
601

32
31
31
30
30
30
30
30
29
29
29
29

367
363
355
356
355
353
351
350
359
361
361
371

1
1
1
1
1
1
1
1
1
1
1
1

260
260
259
257
257
256
254
255
257
257
258
258

115
114
114
114
114
114
113
113
113
113
113
113

282
280
274
282
290
289
289
285
286
289
291
294

2,648
2,634
2,546
2,551
2,558
2,780
2,838
2,793
2,731
2,689
2,675
2,716

3
3
3
3
3
3
3
3
3
3
3
3

677
691
693
703
702
701
700
744
785
817
82$
820

1933—JanuaryFebruary _.
March
April
May *
>

5,645
6,545
6,320
6,003
5,813

479
571
367
335
324

591
649
393
323
280

28
28
28
28
28

350
362
376
360
359

1
1
1
1
1

250
252
258
255
257

111
111
112
112
112

287
301
266
261
265

2,707
3,405
3,621
3,362
3,167

3
3
17
50

836861
879
915
922

v Preliminary figures.
Back figures—See Annual Reports for 1931 (table 35), 1930 (table 32), and 1927 (table 22).




98

JUNE

347

FEDERAL RESERVE BULLETIN

1933

MEMBER BANE RESERVE BALANCES
[In millions of dollars]
Averages of daily figures
Reserves held

Month or week
Total—all
member
banks

New York
City»

1931—November....
December

2,118
2,069

774
766

1932—January
,
February
March
April
May
June
July
August
September....
October
November. - .
December

1,979
1,907
1,899
1,996
2,138
2,062
2,003
2,073
2,181
2.307
2,378
2,435

1933—January
February»-..

Excess reserves
'Country'
banks

Total—all
member
banks

New York
City*

807

512
503

57.0
59.5

10.7
18.5

19.4
16.9

26.9
30.9

724
681
687
780
874
783
767
832
927
1,001
1,050
1,083

767
753
747
749
800
819
781
797
812
863
887
911

488
473
465
466
464
459
455
444
443
444
441
440

35.4
43.8
59.0
152.1
277.1
234.4
204.4
269.9
345.5
435.9
482.2
525.8

4.5
7.2
17.8
88.1
155.1
89.4
75.0
127.7
193.4
241.6
266.8

1.8
11.3
17.3
35.7
91.5
111.4
91.6
108.9
119.6
160.5
181.8
206.9

29.2
25.3
23.8
28.3
30.5
33.6
37.9
33.3
32.4
33.7
33.7
35.7

2,516
2,291

1,109

965

442
441

583.8
417.3

286.2
74.5

254.2
291.0

43.4
51.8

2,508
2,559

946
950
997

453
442
445

2,491

1,121
1,171
1,141
1,057

308.7
350.1
311.8
232.9

219.1
236.4
238.1
288.4

2,438
2,377
2,275
2,233

997
931
855
801

1,007
1,006
984
987

435
440
436
444

173.7
123.2
60.8

298.8
303.5
281.9
294.5

Other
reserve
cities

Other
reserve
cities

" Country"
banks

Week ending (Friday)—
January
January
January
January

6
13
20—
27

February
February
February
February

3
10
17
24 8

»Central reserve city banks only.
> Figures not available by weeks.
Back figures.—See Annual Report for 1931 (tables 49 and 56).

• March and April data not available.

MEMBER BANE DEPOSITS
[In millions of dollars]
Averages of daily figures
Net demand deposits

Net demand and time deposits

Time deposits

Month
Totalall membanks

New
York
City*

Other
reserve
cities

T tal"Coun- all omemtry"
ber
banks
banks

New
York
City*

T talOther "Coun- all omemtry"
reserve
ber
banks banks
cities

New
York
Cityi

1931—November..
December

28,218
27,438

6,612
6,414

11,350
11,048

10,256
9,976

16,358
15,985

5,653
5,546

6,273
6,106

4,432
4,333

11,860
11,453

868

1932—January
February...
March
April
May
June
July
August.
September..
October
November-.
December...

26,592
25,715
25,431
25,386
25,466
25,075
24,712
24,744
24,973
25,292
25,476
25,492

6,165
5,797
5,760
5,950
6,159
5,957
5,951
6,084
6,308
6,559
6,762
6,877

10,706
10,413
10,291
10,109
10,081
10,032
9,830
9,833
9,853
9,964
9,941

9,720
9,505
9,380
9,327
9,226
9,087
8,931
8,827
8,811
8,795
8,751
8,674

15,447
14,789
14,575
14,589
14,679
14,413
14,157
14,141
14,408
14,679
14,864
14,965

5,343
5,001
4,959
5,138
5,342
5,154
5,133
5,217
5,440
5,629
5,804
5,937

5,921
5,723
5,622
5,492
5,425
5,433
5,304
5,283
5,316
5,402
5,432
5,424

4,183
4,064
3,993
3,959
3,911
3,826
3,720
3,641
3,652
3,649
3,628
3,604

11,145
10,926
10,856
10, 797
10,787
10,663
10,555
10,603
10,565
10,612
10,612
10,527

822
796
800
811
816
803
818
867
869
929
957
940

1933—January
February *..-

25,641
24,978

7,050
6,722

10,023
9,847

8,568
8,409

15,116
14,645

6,109
5,842

5,470
5,368

3,537
3,435

10,525
10,333

941

i Central reserve city banks only.
Back figures.See Annual Report for 1931 (table 49).




* March and April data not available.

Other
reserve
cities

11

Country"
banks

5,076
4,942

5,825
5,643

4,786

5,537
5,440
5,387

4,688
4,618
4,656
4,599
4,526
4,550
4,538
4,537
4,532
4,517

5,315
5,261
5,211
5,186
5,159
5,145
5,123
5,071

4,553
4,479

5,031
4,974

348

FEDREAL RESERVE BULLETIN

JUNE

1933

ALL BANKS IN THE UNITED STATES—LOANS AND INVESTMENTS
[In millions of dollars.

Includes national banks, State commercial banks and trust companies, mutual and stock savings banks, and all private
banks under State supervision]
All banks

Nonmember banks

Member banks

Mutual savings banks

Date
Total

Loans

Investments

Loans

Total

Investments

Total

Loans

Other nonmember banks

Investments

Total

Loans

Investments

1928—June 30.
Oct. 3 Dec. 31.

57,265
57,219
58,266

39,464
39,671
40,763

17,801
17,549
17,504

35,061
34,929
35,684

24,303
24,325
25,155

10,758
10,604
10,529

9,242
19,242
9,390

5,518
i 5,518
5,694

3,723
13,723

12,962
12,049
13,192

9,643
9,828
9,913

3,320
3,222
3,279

1929—Mar. 27.
June 29.
Oct. 4__
Dec. 31.

58,019
58,474
58,835
58,417

40,557
41,512
42,201
41,898

17,462
16,962
16,634
16,519

35,393
35,711
35,914
35,934

24,945
25,658
26,165
26,150

10,448
10,052
9,749
9,784

i 9,390
9,556
i 9,556
9,463

15,694
5,892
15,892
5,945

i 3,696
3,664
13,664
3,518

13,236
13,207
13,366
13,020

9,918
9,961
10,144
9,803

3,31?
3,24&
3,221
3,217

1930-Mar. 27.
June 30_
Sept. 24.
Dec. 31.

57,386
58,108
57,590
56,209

40,686
40,618
39,715
38,135

16,700
17,490
17,875
18,074

35,056
35,656
35,472
34,860

25,119
25,214
24,738
23,870

9,937
10,442
10,734
10,989

»9,463
9,747
»9,747
9,987

15,945
6,009
16,009
6,068

i 3,518
3,739
13,739
3,920

12,868
12,706
12,371
11,362

9,623
9,395
8,968
8,196

3,245
3,309
3,402
3,165

1931—Mar. 25.
June 30.
Sept. 29
Dec. 31.

55,924
55,021
53,365
49,704

36,813
35,384
33,750
31,305

19, 111
19,637
19,615
18,399

34,729
33,923
33,073
30,575

22,840
21,816
20,874
19,261

11,889 19,987
12,106 10,506
12,199 i 10,506
11,314 10,488

i 6,068
i 6,169
6,218

13,920
4,337
i 4,337
4,270

11,208
10,593
9,786
8,641

7,906
7,399
6,707
5,827

3,302
3,194
3,079
2,814

1932—June 30.
Sept. 30
Dec. 31.

46,071
45,852
44,946

27,834
26,985
26,063

18,237
18,867
18,883

28,001
28,045
27,469

16,587
15,924
15,204

11,414
12,121
12,265

6,130
» 6,130
6,079

4,186
14,186
4,103

7,755
7,491
7,295

5,117
4,931
4,780

2,637
2,560
2,515

10,316
i 10,316
10,182

i Figures of preceding call carried forward.

ALL BANKS IN THE UNITED STATES—DEPOSITS, EXCLUSIVE OF INTERBANK DEPOSITS
[In millions of dollars. Includes national banks, State commercial
banks and trust companies, mutual and stock savings banks, and all
private banks under State supervision]

NUMBER OF BANKS
[All banks in the United States; includes national banks, State commercial banks and trust companies, mutual and stock savings banks,
and all private banks under State supervision]

Member banks

Nonmember banks
Date

All banks Member
banks

Mutual
Other
saving nonmembanks ber banks

1928—June 30.
Oct. 3__
Dec. 31.

53,398
53,720
56,766

32,133
32,138
34,826

8,653
i 8,653
8,849

12,612
12,929
13,091

1929—Mar. 27.
June29.
Oct. 4-_
Dec. 31.

54,545
53,852
55,180
55,289

33,215
32,284
33,004
33,865

18,849
i 8,983
8,916

12,481
12,584
13,193
12,507

1930-Mar. 27.
June 30.
Sept. 24.
Dec. 31.

53,185
54,954
52,784
53,039

32,082
33,690
31,839
32, 560

18,916
9,197
i 9,197
9,507

12,187
12,067
11,748
10,972

1931—Mar. 25.
June 30.
Sept. 29.
Dec. 31.

51,427
51,782
49,152
45,821

31,153
31,566
29,469
27,432

i 9,507
10,017
U0,017
10,105

10,767
10,199
9,666
8,284

1932—June 30.
Sept. 30.
Dec. 31.

41,963
41,942
41,643

24,755
24,903
24,803

10,020
i 10,020
10,022

7,188
7,020
6,818

i Figures of preceding call carried forward.




Date

Total

Total

National State

Nonmember
banks
Mu- Other
nontual
sav- member
ings
banks banks

1928—June 30Oct. 3—.
Dec. 31—

25,941
25,828
25,576

8,929
8,896
8,837

7,685
7,670
7,629

1,244
1,226
1,208

615
i 615
612

16,397
16,317
16,127

1929—Mar. 27..
June 29Oct. 4—.
Dec. 31-.

25,341
25,110
24,951
24,630

8,755
8,707
8,616
8,522

7,569
7,530
7,468
7,403

1,186
1,177
1,148
1,119

1612
611
i 611
609

15,974
15,792
15,724
15,499

1930-Mar.27.-.
June 30
Sept. 24....
Dec. 3 1 — .

24,223
23,852
23,590
22,769

8,406
8,315
8,246
8,052

7,311
7,247
7,192
7,033

1,095
1,068
1,054
1,019

1609
606
1606

15,208
14,931
14,738
14,114

1931—Mar. 2 5 . June 30
Sept. 29—
Dec. 3 1 —

22,372
21,903
21,294
19,966

7,928
7,782
7,599
7,246

6,800
6,653

998
982
946
878

1603
600
1600
597

13,841
13,521
13,095
12,123

1932—June 30..
Sept. 30.
Dec. 3 1 -

19,046
18,794
18,390

6,980
6,904
6,816

6,145
6,080
6,011

835
824
805

594
1594
594

11,472
11,296
10,980

i Figures of preceding call carried forward

349

FEDERAL RESERVE BULLETIN

JUNE 1933

REPORTING MEMBER BANKS IN 90 LEADING CITIES1
[In millions of dollars]

Loans and investments
Month or date
Total

Mar. 1..
Mar. 8..
Mar. 15.
Mar. 22.
Mar. 29.
Apr.
Apr.
Apr.
Apr.

Loans and investments

BorInvestments rowings
at F.R.
Loans All
banks Total on se- other
curities loans
U.S. seTotal curities

Loans All
on se- other
curities loans

89 other leading
cities

New York City

Total—90 leading cities

Borrowings
at F.R.
banks

Investments
U.S. seTotal curities

414
1,066
849
•379
283

7,619
4,631
15,900
3,727 4,554
7,418
4,551
4,427
15,728
3,759
* 16,017 » 3,762 2 4, 626 '7,629 2 4,580
7,631
4,665
4,578
16,021
3,725
7,669
4,688
4,583
16,001
3,644

6,512
6,412
6,523
6,484
6,457

1,640
1,668
1,674
. 626
,
.,555

1,439
1,453
1,483
1,525
1,563

3,433
3,291
3,366
3,333
3,339

2,338
2,186
2,253
2,210
2,185

183
632
483
147
84
18
27
23

512.
19.
26.

15,927
15,887
15,876
16,048

3,617
3,584
3,583
3,638

4,640
4,661
4,627
4,703

7,670
7,642
7,666
7,707

4,585
4,584
4,635
4,678

177
168
158
124

6,439
6,455
6,439
6,627

,548
,535
,538
1,611

1,515
1,557
1,535
1,614

3,376
3,363
3,366
3,402

2,215
2,208
2,236
2,269

May 3 May 10.
May 17.
May 24.
May 31.

16,288
16, 318
16, 346
16,329
16,426

3,715
3,724
3,648
3,713

4,706
4,689
4,697
4,704
4,772

7,884
7,914
7,925
7,977
7,941

4,909
4,908
4,934
4,963
4,948

129
80
85
78
76

6,753
6,790
6,847
6,786
6,933

1,676
1,711
1,735
1,663
1,733

1,615
1, 594
1,617
1,624
1,694

3,462
3,485
3,495
3,499
3,506

Total
Borloans
and in- rowings
at F.R.
vestments banks

231
434
366
232
199

9,432
9,437
9,421

159
141
135
124

9,535
9,528
9,499
9,543
9,493

2,353
2,357
2,378
2,384
2,429

9,388
9,316
»9,494
9,537
9,544

129
80
85
78
76

1
8

See note on p. 273, May BULLETIN, explaining the basis on which thesefigureshave been compiled.
On Mar. 9 a member bank in Chicago took over assets and assumed deposit liabilities of a nonmember bank aggregating approximately
$135,000,000.

BROKERS' LOANS
MADE BY REPORTING MEMBER BANKS IN N.Y. CITY
[In millions of dollars. Monthly data are averages of weekly figures]

REPORTED BY THE NEW YORK STOCK EXCHANGE
[Net borrowings on demand and on time. In mDlions of dollars]
From New
From private
York banks banks, brokers,
and trust com- foreign banking
agencies, etc.
panies

Total
End of month
1932

January
February
March
April
May
June
July
August

1933

1932

1933

1932

1933

512
525
633

359
360
311

374
385
391

270
298
247

138
140
142

90
62
64

379
300
244'

322
529

300
243
194

268
461

79
57
49

54
68

SfiptftTnhftr

242
332
380

195
248
292

47
85
88

October.
Nnvprnber
December

325
338
347

263
278
279

61
61
68

Back figures.—See Annual Reports for 1931 (table 63) and 1927
(table 47).




Month or date
1932-April
May
June
July
August
September.
October. ..
November.
December.
1933—January...
February..
March
April
_.
May
May 3
May 10....
May 17
May 24
May 31

Total
500
436
377
335
344
409
411
354
393
380
433
578
512
564
618
563
635

For acFor count of For acown ac- out-of- count of
town others
count
banks *
423
385
342
309
319
385
389
336
377
365
416
373
374
555
491
541
594
539
611

i Member and nonmember banks outside New York City (domestic
banks only).
Backfigures.—BeeAnnual Report for 1933 (table 62), 1930 (table 56)
etc.

350

FEDERAL RESERVE BULLETIN

JUNE 1933

ACCEPTANCES AND COMMERCIAL PAPER
BANKERS'

ACCEPTANCES O U T S T A N D I N G
ACCEPTANCES)

(DOLLAR

CLASSES OF BANKERS' ACCEPTANCES (DOLLAR
ACCEPTANCES)

[In millions of dollars]
Held by Federal Reserve
banks

End of month

Total
outstanding

[In millions of dollars]

For
acFor count
own of foraceign Total
count correspondents

Held
by
others
Own
bills

End of month

Bills
bought

1931—January
February—.
March
April
May
Juno .
July
August.
September..
October
November..
December. .

1,520
1,520
1,467
1,422
1,413
1,368
1,228
1,090
996
1,040
1,002
974

89
85
123
162
124
95
39
70
420
647
418
305

447
456
431
409
380
341
243
228
100
99
126
251

571
550
472
410
464
554
668
606
410
230
296
262

134
151
131
125
171
196
232
168
162
112
125
131

437
398
341
285
293
357
436
438
248
118
171
131

412
429
440
441
444
379
278
186
67
63
161
156

1932—January
February...
March
April
May . June
July
August
SeptemberOctober
NovemberDecember. _

961
919
911
879
787
747
705
681
683
699
720
710

119
76
36
16
4
36
12
3
2
3
4
4

314
312
335
292
183
98
59
49
43
39
32
40

332
343
377
455
510
518
563
574
573
605
655
604

159
175
155
188
225
200
197
198
«159
199
268
224

174
168
222
268
286
318
366
376
414
406
386
380

195
189
163
115
90
96
70
55
64
52
28
62

1933—January
February.. _
March
April . . —
May

707
704
671
697

2
307
280
164
13

41
30
45
43
36

626
325
261
404

256
201
153
206

370
124
108
199

38
42
85
86

«Corrected.
Figures for acceptances outstanding (and held by accepting banks)
from American Acceptance Council.
Back figures.—See Annual Reports for 1931 (table 70), 1930 (table 64),
1929 (table 58), and 1928 (table 61).
ACCEPTANCES PAYABLE IN FOREIGN CURRENCIESHOLDINGS OF FEDERAL RESERVE BANES

OUTSTANDING

January...
February..
March
April
May
June
July
August
September.
OctoberNovember.
December.

1930
1,035
1,038
1,040
1,054
1,058
1,064
1,065
1,071
1,075
21,583
31,587
35,983

1931
36,119
23,958
1,063
1,074
1,073
10,551
34,371
145,215
48,804
33,501
33,429

1932
33,444
33,478
30,778
30,736
30,837
30,762
30,645
30,834
30,849
30,659
30,652
29,489

June
July
August. ._
September
October . .
November
December
1933—January
February.
March
April

Back figures.—See Annual Reports for 1928 (table 12), 1927 (table
12), 1926 (table 24), etc.




.

199
184
173
162
152
156
157
161
164

251
217
193
178
192
212
222
237
230

17
15
13
15
11
8
6
9
10

294

707

.

118
103
97
85
76
73
81
81
79
71
71
73

166
174
175
176

222
219
184
199

11
9
8
10

237

2

6
3
19
5
1
1
2
3
2

1

5

1
1

5
4

704
671
696

77

269
271
265
250
234
231
232
228
231
230
234

HELD BY P.R. BANKS
(OWN ACCOUNT) *

1932—April
May
June-

16
5
36
12
3
2
3
4
4

August.
September
October .
November
December
1933—January
February
March
April .

..

2
307
280
164

2

(J)
4
1

(t)

(j)

(i)

6
1

(*)

(3)

31
33
20

1

1
1

1
105
87
38

58
56
35

2

1
1

5

4

1
1
1
1
1
107

97

2

66

i Total holdings of Federal Reserve banks include a small amount of
unclassified acceptances.
> Less than $500,000.
Back figures.—See Annual Reports for 1931 (tables 67 and 15), 1930
(tables 61 and 14), etc.
COMMERCIAL PAPER OUTSTANDING
[In millions of dollars}
End of month

1933

28,997
24,788
7,181
6,981

879
787
747
705
681
683
699
720
710

1932—April
May

[In thousands of dollars]
End of month

Based
Based
on goods
on
stored in
goods
stored
Based Based United
in
States
on ex- (ware- Dollar foreign
Im
counexTotal ports ports house
tries or
into from credits) change shipped
or
U.S. U.S. shipped
bebetween
tween
domestic
foreign
points
points

Held by accepting
banks

January...
February..
March
April
May
June
JulyAugust
September.
October
November.
December..

1930
404
457
529
553
541
527
528
526
513
485
448
358

1931

327
315
311
307
305
292
289
271
248
210
174
118

1932
108
103
106
108
111
103
100
108
110
113
110
81

1933
85
84
72
64

Backfigures.—SeeAnnual Reports for 1931 (table 66) and 1930 (table
60).

JUNE

351

FEDERAL RESERVE BULLETIN

1933

FEDERAL RESERVE BANE RATES

OPEN-MARKET RATES

DISCOUNT RATES

RATES IN NEW YORK CITY

{Rates on rediscounts for and advances to member banks under sections
13 and 13 (a) of the Federal Reserve Act]

Average rate Average yield

Prevailing rate on—
Federal Reserve bank

Boston
New York.—
PhiladelphiaCleveland
Richmond
Atlanta
Chicago
St. Louis
MinneapolisKansas City..
Dallas
San Francisco,

Rate in
effect on
June 10

Date established

Previous
rate

June 1,1933
2H May 26,1933
June 8,1933
3
June 10,1933
3
Jan. 25,1932
Nov. 14,1931
May 27,1933
3
June 8,1933
3
3H Sept. 12,1930
Oct. 23,1931
Jan. 28,1932
June 2,1933

Back figures.—See Annual Report for 1931 (table 36).

The following special rates are also in effect at all
Federal Reserve banks:
Percent
Advances to member banks under sec. 10 (b) of the Federal Reserve act, as amended by sec. 402 of the act of Mar. 9,1933
5
Advances to nonmember banks and trust companies under sec.
404 of the act of Mar. 9,1933, as amended by the act of Mar. 24,
1933

5

Discounts for individuals, partnerships, and corporations under
the third paragraph of sec. 13 of the Federal Reserve act, as
amended by sec. 210 of the act of July 21,1932

6

Advances to individuals, partnerships, and corporations secured
by direct obligations of the United States under the last paragraph of sec. 13 of the Federal Reserve act, as amended by sec.
403 of the act of Mar. 9, 1933
_

4^

BUYING RATES ON ACCEPTANCES

1-15 d a y s . . .
16-30 d a y s . .
31-45 d a y s . .
46-60 d a y s . .
61-90 days _.
91-120 days.
121-180 days

Rate in
effect on
June 10
2
2
2
2
2
2H

Date established

Mar. 22,1933
.—do
do
— .do
....do
— .do
..._do

1932
April
May
June
July
August
September
October
November
December

Prime
bank- Time
ers'
accept- loans,
90
ances, days 8
90
days

2

-3

2 -2H
2 -

H

1H-1H

H

2.50
2.50
2.50
1H-1H 2.08
2.00
IK-1H 2.00
1.35
1.00
1.00

2.50
2.50
2.50
2.08
2.00
2.00
1.35
1.00
1.00

l

H

January
February
March
April
May
Week endingApril 29
May 6
May 13
May 20
May 27

1.00
1.00
3.27
1.29
- I K 1.00

l

-I;

1.00
1.00
1.00
1.00
1.00

HrH
2 -ZH
2 -2H
2
2
2
2
2

U.S.
Treasury
notes Treasand
ury
bonds'
ReNew newal certificates,
3 to 6
months

H

-2K
-2)4
-2M
-2)4

«.O4

3.74
3.77
3.78
3.65
3.57
3.54
3.54
3.55
3.48

1.00
1.00
3.32
1.37
1.00

.07
.01
«1.34
.45
.29

3.39
3.47
3.58
3.55
3.47

1.00
1.00
1.00
1.00
1.00

.41
.39
.34
.21
.23

3.56
3.54
3.47
3.46
3.44

1.11
.31
«.34

.22
.14
«.O3

* Stock exchange call loans; new and renewal rates.
Stock exchange 90-day time loans.
3 issues—3%, 3H, 4 percent; yields calculated on basis of last redemp.
tion dates—1947,1956, and 1954.
4
Change of issues on which yield is computed.
Back figures.—See Annual Report for 1931 (tables 39 and 40), 1930
(tables 36 and 37), 1929 (tables 35 and 36), etc.
1
1

[Buying rates at the Federal Reserve Bank of New York]

Maturity

Call loans «

Month or week Prime
commercial
paper,
4 to 6
months

Previous
rate

2H

RATES CHARGED CUSTOMERS BY BANES IN
PRINCIPAL CITIES
[Weighted averages of prevailing rates]

NOTE.—Rates on prime bankers' acceptances. Higher rates may be
charged for other classes of bills.
Back figures.—See Annual Reports for 1931 (table 37) and 1928 (table
35).




New York City

8 other northern
and eastern cities

27 southern and
western cities

1931

2%
3

1932

1933

1931

1932

1933

1931

1932 1933

4.24
4.31
4.20
4.17
4.11
4.13
4.05
3.97
3.93
4.27
4. #7
4.64

4.71
4.71
4.72
4.69
4.55
4.61
4.42
4.45
4.30
4.35
4.12
4.22

4.12
4.11
4.88
4.33
4.24

4.63
4.62
4.57
4.55
4.49
4.48
4.47
4.48
4.62
4.87
4.91

5.07
5.13
5.14
5.10
5.14
5.13
5.05
5.12
5.03
4.96
4.88
4.88

4.89
4.84
5.39
5.09
4.99

5.50
5.43
5.40
5.36
5.26
5.34
5.30
5.28
5.32
5.38
5.53
5.56

5.61
5.61
5.64
5.63
5.64
5.62
5.63
5.68
5.63
5.56
5.55
5.60

Month

January
February
March
April
May
June
July
August. __
September. ..
October
NovemberDecember...

Back figures.—See Annual Report for 1931 (table 42).

5.60
5.56
5.66
5.68
5.66

352

FEDERAL RESERVE BULLETIN

J U N E 1933

SECURITY PRICES AND SECURITY ISSUES
SECURITY PRICES
[Index numbers of Standard Statistics Co. Monthly data are averages of weekly flguresj
Common stocks (1926=100)
PreBonds 1 ferred
stocks*

Month or date

Number of issues

December
! 933—January
February
March
April
May
May
May
May
Mav
May

. . .

Electrical Maequip- chinery
ment

Oil

Steel

Textile

20

421

351

33

37

13

12

16

11

8

4

10

15

10

28

57
44
40
34
36
63
68
50
48
47
49
45
43
48
63

64
42
33
34
36
52
66
48
45
45
46
42
42
49
65

32
22
17
14
16
29
35
28
26
26
28
27
26
26
38

93
73
68
55
84
91
81
78
80
82
73
67
64
79

65
34
30
26
26
45
64
43
40
40
42
38
34
42
68

29
22
20
18
19
30
34
28
25
25
25
23
22
28
45

58
49
42
35
36
49
53
48
47
47
46
43
40
44
54

85
61
52
48
60
75
83
74
71
76
82
74
72
82
104

30
22
20
17
20
38
47
34
32
26
29
28
29
39
55

77
67
52
40
43
73
78
63
60
66
61
54
52
61
84

47
37
33
29
30
44
48
42
39
38
39
39
37
43
57

45
38
39
37
42
55
64
47
47
46
46
42
41
47
58

32
23
20
16
18
33
42
33
28
26
27
24
23
32
51

31
26
23
20
22
33
39
33
30
28
27
26
24
28
43

58
61
63
65
69

60
63
65
67
72

34
36
37
39
42

72
76
81
82
85

60
67
68
71
72

39
41
45
47
54

52
54
54
55
57

96
100
104
107
112

54
52
52
54
63

79
82
83
83
91

52
54
57
59
64

53
58
57
60
65

46
49
51
52
56

36
39
45
45
51

78.1
79.9
82.7
84.1
85.0

3
10
17
24
31

Total Indus- Rail- Public
trial road utility Auto- Build- Chain Chem- Copper
ing
and
mobile equip- store
ical
brass
ment

'83.7 '103. 2
'80.2
94.2
90.3
'76.0
83.6
'72.8
'75.1
85.3
98.6
'84.3
'87.0 101.8
' 85.2 99.8
'83.1
97.4
'82.2
95.4
84.1
97.8
95.7
82.6
93.1
76.7
95.7
75.4
82.0 103.3

60

1932—March
April
May
June
July
August
September _ .
October

Selected groups o f industrial issues

100.3
100.7
103.1
105.0
107.5

' Revised.
i Average price of 60 high-grade bonds adjusted for differences in coupon rate and maturity.

1

20 high-grade industrials; average price.

Back figures.—See (for principal series) Annual Report for 1931 (table 129).

UNITED STATES GOVERNMENT

CAPITAL ISSUES
[Long-term; i. e., 1 year or more. In millions of dollars]
New issues
Total
(doYear and month mestic
and
foreign)
1925
1926
1927
1928
1929
1930... .
1931
1932
1932-May
June
July
August
SeptemberOctober
NovemberDecember..
1933—January
February...
March
April
May

6,201
6,314
7,556
8,040
10,091
6,909
3,099
1,165
91
78
106
63
75
94
44
124
65
20
16
25
44

Domestic
Total'

Corporate
State
Forand
eign
mu- Bonds
niciand Stocks
pal
notes

5,125
5,189
6,219
6,789
9,420
6,004
2,860
1,157
91
78
104
60
73
94
43
124
65
20
16
25
44

1,352 2,452
1,344 2,667
1,475 3,183
1,379 2,385
1,418 2,078
1,434 2,980
1,235 1,240
305
755
84
7
74
4
25
62
34
25
63
6
36
47
28
9
99
6
33
19
17
1
0
13
16
8
1
40

1,153
1,087
1,474
2,961
5,924
1,503
311
20
0
0
1
2
0
2
2
4
3
0
3
1

1,076
1,125
1,337
1,251
671
905
229
8
0
0
2
3
2
0
1
0
0
0
0
0
0

SECURITIES

[In millions of dollars]
Refunding
issues
(domestic
and
foreign)
925
1,046
2,220
1,858
1,422
711
949
583
32
64
57
108
76
43
32
35
45
37
3
20
60

Outstanding at end
of month
Month
Total

Increase or decrease
(—) during month

Bonds Certificates
and
and Total
notes
bills

1931
Total (12 months).

Bonds Certifand icates
and
notes bills

1,754

638
•

1932
January
February
March
April
May
June
July
August
September
October.
November
December
Total (12 months).
1933

2,413
2,718
3,088
3,184
3,411
3,446
3,553
3,304
3,008
2,689
2,680
2,926

>

1,116

•

10

-23
306
370
96
227
35

305
370
97
442
432
136
461
538
189
-9
-28

-274

-249
-296
-319
-9
246

2,920

2,430

490

1
216
397
29
710
834
608

107

January..
20,454 17,528 2,926
6
20,685 17,806 2,879
February.
278
231
-47
20,991 17,805 3,186
-1
306
307
March
21,087 17,806 3,281
96
1
95
» Includes issues of Federal land banks and Federal intermediate credit April
21,469 18,371
382
565
May
banks, not shown separately.
Sources.—For domestic issues: Commercial and Financial Chronicle;
for foreign issues (issues publicly offered) annual totals are as finally
NOTE.—Figures relate to interest-bearing public debt; matured and
reported by Department of Commerce, while monthly figures are as noninterest-bearing debt amounted to $385,000,000 at the end of M a y
compiled currently and are subject to revision.
1933. Figures include obligations held in Government trust funds
Back figures.—See '(for figures of new issues—annual and quarterly
Bonds and notes are long-term—i. e., 1 year or more (figuring from
basis) Annual Report for 1931 (table 128).
date of issue); certificates and bills, shorter term.




353

FEDEEAL RESERVE BULLETIN

J U N E 1933

PRODUCTION, EMPLOYMENT, CAR LOADINGS, AND COMMODITY PRICES
[Index numbers; 1923-25 average*-100. The terms adjusted and unadjusted refer to adjustment for seasonal variation]
Industrial production *
Year and
month

Manufactures1

Total»

Construction contracts awarded (value) »

Minerals»

Total

Residential

All other

Factory employment J

Factory
pay
rolls 1

Freight-car
loadings«•

Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Unad- Adjusted justed justed justed justed justed justed justed justed justed justed justed justed justed justed justed justed
1919
1920
1921
1922

84
87

1923
1924 - , .
1925
1926
1927
1928
1929
1930 —
1931
1932

101
95
104
108
106
111
119
96
81
64

89

67
86
101
94
105
108
106
112
119
95

83
87
67
85

105
96
99
108
107
106
115
99

70
74

63

79
90
65

68
81
95
124
121
117
126

84
94
122
129
129
135
117
92
63
28

84
71

80

44
30
44

63
63
56
79

77

88
86
94
120
135
139
142
142
125
84

87
50
37
13

98
118
77

107

108
82

81
103
96
101
104
102
102
108
87
66
45

90
104
96
100
101
99
97
101

88
74
62

40

1929
122
121
119
110
101

121
127
127
114
110

115
118
116
110
116

105
107
104
104
101
97
92
89
89
86
85
82

108
104
91
94
102
103
100
101
101
105
96
89

108
98
104
104
102
100
96
94
95
92
93

89
102
113
125
116
107
85
82
75
68
59

83

87
84

89
87
89
91

58
68
77

August-~
September
October. _
November
December

122
123
121
108
96

121
121
103

93

1930
January..
February.
March....
April
May _ .
June
July
August...
September
October..
November
December

103
109
106
107
105
99
91
90
92
90
84
77

106
107
104
104
102
98
93
90
90
88
86
84

102
110
109
110
106
98
89

82
87
90
90
89

81
88
91
91
90

75
72
68

84
86
87
88
87
83
82
78
76
73
73
74

72
70
66

75
71
71
73

82
83
84
86
86
82
83
90
84
79

January..
February.
March
April
May
June
July
August...
September
October-.
November
December

71
71
68
64
61
59
56
59
67
68
65
60

72
69
67
63
60
59
58
60
66
67
65
66

70
70
66
63
60
59
55
58
66
66
63
58

71
68
64
61
58
58
57
59
66
65
63
64

74
75
77
72
65
61
62
66
73
80
78
72

77
78
84
79
67
63
64
65
70
74
75

1933
January..
FebruaryMarch
April

64
65
61
>68

65
64
60
*>67

63
63
59
*>68

64

71
76
74
65

1931
January..
February.
March....
April
May
June
July
August...
September
October..
November
December

83
80
78
77

118
110

122
123
119
107

88
90
87
82
74

83
79
77
76

86
87

87
87
82
82
78

no

129
112
104
94
84

122
110
107
103

78

95
104
102
101
105
99
95
81
81
78

82
78
74
68

102

76
73
71
79
77

63
59
52
43
30

73
65
63
61
59
59
55
49
38

76

25
23
26
31
31
32
31
32
30
28
24
22

31
27
26
27
26
27
27
30
30
29
27
28

73
79
81
72

18
16
14
16

22
19
14
14

87

87
86
79
78
83
81
84

100

81
75
74

99
96
97
96
93
92
89
87
86
84
84

93
91
90
90
89
87
84
84
84
83

68
73
75
74
72
68
64
64
62
59

74
74
75
77
79
77
78
76
78
78

82
80

111
112
111
103
99

46
44
54
62
61
54
48
48
52
51
46
37

56
49
52
53
52
49
47
49
52
52
48
43

104
126
141
156
178
166
155
115
108
94
86
77

128
148
144
140
148
140
135
106
105
99
99
98

93
93
93
93
91

96
94
93
92
91
90

94
98
98

86
84
81
79

84
83
82
81
80

37
42
50
52
47
41
36
32
32
29
26
20

44
47
47
44
40
37
35
33
32

75
89
98
107
104
101

93
104
100
96
85

76
77
78
78
77

78
78
78
78
78

27
23

57
39

16
15
16
16
14
12
12
11
12
12
10

19
17
15
14
12
11
11
12
12
12
10
9
8
8
8
10

30

75

74
74
75

71

76
75
74

73
70

67
50

69
68

69
69

33
30
35
43
45
47
46
48
45
41
35
33

41
35
36
38
37
39
40
45
44
43
41
43

66
67
66
64
61
59
57
59
62
62
61
60

68
68
66
64
62
60
58
59
60
61
61
61

27
23
18
19

33
27
18
17

58
59
57
58

59
59
57
58

56

91
90
93
97
95
95
96
99
97
86
74

103
102
101
99
97

84
82
81
80
76

104
100
95
97
95
86
73
65

89

135
116
109

104
105
103
99
95

94
87
81
71

100
97
103
106
103
103
106
92
75

118
102
89

66
53

152
140
139
132
136

87

139
154
98
97
101
98

96
96
95
94
93

166
144

89
86
85

prices5

107
106
104
102
102

86
73
67
67
61

84
73
67

84
91
79
87

Cornmod'

97
94
91
83
82

83

116
121

80
80
79
77
76
72
69

81

80
78
77
76
75
73
72
72
72
71
70
70

70
61

69
68
69

52
54
52
49
46
43
40
40
42
44
42
41

58
59
58
57
53
52
51
53
61
65
58
52

64
62
61
59
54
52
51
51
54
57
57
58

67
66
66
66
64
64
65
65
65
64
64
63

39
40
37
39

51
51
48
51

56
54
50
53

61
60
60
60

56
56

69

1932

1

62
57
*66

8
7
7
8
11

• Average per working day.
Preliminary.
For indexes of groups and separate industries see p. 408; for description see BULLETIN for February and March 1927; for back figures see

BULLETIN for March 1932, p. 194.
1

3-month moving average, centered at second month; for description and back figures see BULLETIN for July 1931, p. 358.
» For indexes of groups and separate industries see p. 409; for description and back figures see BULLETIN for November 1929 and November 1930.
4
For indexes of groups see p. 354; for back figures see BULLETIN for February 1931, p. 108.
1
Index of Bureau of Labor Statistics; 1926= 100. Index numbers for groups of commodities are given on p. 410.




354

FEDERAL RESERVE BULLETIN

JUNE

193a

MERCHANDISE EXPORTS AND IMPORTS
[In millions of dollars]
Merchandise exports

Merchandise imports

Excess of exports

Month
1929
January
February
March

1933

1929

1930

1931

1932

1930

1929

1933

1931

1932

—-

October
- November December
Year

488
442
490

411
349
370

250
224
236

150
154
155

121
102
108

369
369
384

311
282
300

183
175
210

136
131
131

96
84
95

119
72
106

100
67
69

66
49
26

425
385
393

332
320
295

215
204
187

135
132
114

*105

411
400
353

308
285
250

186
180
173

127
112
110

»88

15
—15
40

24
35
44

29
24
14

9
20
4

403
381
437

267
298
312

181
165
180

107
109
132

353
369
351

221
218
226

174
167
170

79
91
98

50
11
86

46
79
86

6
—2
10

27
18
84

327
289
275

205
194
184

153
139
132

391
338
310

247
204
209

169
149
154

105
104
97

137
104
117

80
85
66

36
44
30

48
34
35

3,843

2,424

1,611

4,399

3,061

2,091

1,323

842

782

334

1933

15
23
24

5,241

-

July
August
September

1932

1931

529
442
427

. _

April
May
June

1930

289

25
18
13

v Preliminary.

DEPARTMENT STORES—SALES, STOCKS

FREIGHT-CAR LOADINGS, BY CLASSES

[Index numbers; 1923-25 average—100]

[Index numbers; 1923-25 average—100]

Index of stocks (end of
month)

Index of sales >

1933

1932
Dec.

Month

1932
January
February
March...
April
May
June

1933 1932

1933 1932

78
78
72
- - -

60
60
57

64
64
69

49
49
50

75
73
70

79
72
69

67
*68

74
72
66

68
P68

69
68
67

1933 1932
58
••57

••54
53

1933

66
69
73

52
54
55

72
69
65

55

July
August
September

65
65
68

46
49
71

64
61
60

59
59
63

October
- November
December

69
63
60

75
73
106

61
61
60

67
69
56

Year

69

66

p Preliminary.
r Revised.
1
Based throughout on figures of daily average sales—with allowance
for changes from month to month in number of Saturdays and for 6
national holidays: New Year's D a y , Memorial Day, Independence Day,
Labor Day, Thanksgiving Day, and Christmas. Adjustment for seasonal variation makes allowance in March and April for the effects
upon sales of changes in the date of Easter.
Back figures.—See BULLETIN for November 1930, p . 686.




Jan.

Feb.

Mar.

Apr,

I

Adjusted
Adjusted
Without
Without
for seasonal seasonal ad- for seasonal seasonal adjustment
variation
variation
justment

Adjusted for seasonal variation
Total
Coal
Coke
Grain and grain products
Livestock
Forest products
Ore
Miscellaneous
Merchandise i

58
69
45
59
50
22
20
57
69

56
56

40
61
50
22
20
57
69

54
65
45

50
55
35

53
53
29

58
49
19
20
51
66

69
45
20
23
47
62

53
22
17
52
63

Without" seasonal'ad justment
Total...
Coal....
—
Coke
Grain and grain prod
ucts
Livestock
_.
Forest products
Ore
-~.
Miscellaneous!
Merchandise

52
74
48

51
63
44

51
71
52

48
51
35

51
44
27

57
50
18
5
45
64

59
53
20
5
45
65

56
46
19
5
44
64

58
39
21
5
45
63

76
50
24
8
54
65

i In less-than-carload lots.
Based on daily average loadings. Source of basic data: American
Railway Association.
Back figures.—See BULLETIN for February 1931, pp. 108-110.

JUNE

FEDERAL RESERVE BULLETIN

1933

355

FOREIGN BANKING AND BUSINESS CONDITIONS
ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS
The third annual report of the Bank for
International Settlements, covering the year
ended March 31, 1933, was submitted by
Mr. Gates W. McGarrah, president of the bank,
to the general meeting of shareholders on
May 8, 1933. Sections of the report are given
herewith: 1
For the Bank for International Settlements,
the year has been an eventful one, during
which, while the volume of its ordinary banking business has necessarily been curtailed by
the general falling off of international financial
transactions and the continued departure from
gold of more and more currencies, culminating
in the defection of the American dollar, nevertheless the scope of its general activities has
steadily broadened in sound directions. The
widening of activities, aside from normal growth
in developing new contacts, has been the consequence, primarily, of a year replete with
international conferences, and, also, of the
rapid extension of chaotic conditions in the
international monetary system. In view of all
the events which have occurred, the bank's
board of directors determined to define the
position of the bank on the fundamental currency problems facing the world and it unanimously expressed the opinion, after due deliberation, that in the last analysis "the gold
standard remains the best available monetary
mechanism" and that it is consequently
desirable to prepare all the necessary2 measures
for its international reestablishment.
The Bank for International Settlements is
carefully examining these measures, insofar as
they lie within the power of central banks,
and it becomes more and more evident with
the passage of time that one of the useful roles
the bank can play in the international financial
system is to serve as a central instrument of
the banks of issue in assisting to coordinate the
proper functioning of the gold standard; for
this standard will work no better in the future
than in the past, if the unregulated anarchy
which has prevailed in its application and the
» In addition the report contains sections dealing with the Lausanne
Agreement of July 1932 (published in the BULLETIN for August 1932);
the Preparatory Commission for the Monetary and Economic Conference; the Stresa Conference; trustee and agency functions of the bank;
deposits and investments; share capital; net profits; and changes in the
board of directors; together with a number of annexes showing allotment
of shares in the capital stock of the bank; profit and loss account; trustee
operations, etc. All amounts of money given in the report in Swiss
francs have been converted into dollars at par and then expressed in
round figures. For earlier reports see BULLETIN for June 1932 and
July 1931.
> For full text of the board's resolution, see p. 364.




short-sighted individualism which has been
practiced in its operation commence all over
again.
It was in the field of monetary and financial
restoration that many of the various international conferences held during the year suggested or provided new functions for the bank.
Thus, the Conference of Lausanne, after still
further subordinating the already secondary
reparation activities of the institution, placed
upon it new tasks relating to the international
efforts to bring about monetary and financial
recovery in connection with the World Conference and the preparations therefor. These
tasks have been carried out concurrently with
the discharge of the routine business of the
bank, which has developed satisfactorily and
profitably notwithstanding the general crisis,
and the tasks are being continued without interference with the gradual expansion of the
bank's work in promoting cooperation between
central banks. The report which follows deals
with the multifarious phases of the bank's
activity during the third year, against the
background of the chief events of an international financial character, such as gold
movements, the trend of interest rates, shortterm capital movements and those outstanding features of currency policy which have
directly affected the bank and especially
affected those 25 central banks which are
members of it.
On the whole, 1932 may be styled a year of
adaptation to changed conditions prevailing
in the economic and monetary situation and
one of some definite constructive effort. The
most important constructive measures were
taken or initiated at two periods—the first in
February and the second in the last half of
June and beginning of July. It was in February that the Bank of England, after the repayment of more than half of the large currency credits taken up in the previous summer, lowered its discount rate from 6 to 5
percent, and thereby gave the signal to the
downward movement of interest rates which
was continued all through the year in most
parts of the world. In the same month the
German Government put into effect a plan
for the thorough reorganization of the large
German banks, which involved a considerable
writing off of assets and the supply of new
capital with the aid of the Treasury and, in-

356

FEDERAL RESERVE BULLETIN

JUNE 1933

directly, of the Reichsbank. This reorganizaDuring the year the total gold production of
tion permitted the reopening of the German the world attained the high figure of $495,stock exchange, which had been closed for 7 000,000, thereby establishing a new record by
months. In the United States the Glass- surpassing the production of the previous
Steagall bill was adopted on February 27, peak year, 1915, by $27,000,000 and that of
giving greater freedom to the Federal Reserve 1931 by $36,000,000. While it is to be expected
banks and enabling them to alleviate the pres- that gold production should rise in a period of
sure exerted by internal currency hoarding sharply falling prices and plentiful labor supply,
and withdrawals of gold. On the basis of the the increase has exceeded even the most opprovisions of this new act, the reserve banks timistic forecasts. I t has been most marked
purchased Government securities in the open in the Union of South Africa and Canada,
market to an amount which in June reached by far the largest percentage increase occurring
$1,100,000,000, a sum then sufficient not only in the latter country. Production in the United
to counterbalance withdrawals and hoarding, States, after having declined fairly steadily
but also to provide member banks with sub- from 1915 to 1929, has risen again and at a
stantial excess reserves.
progressively greater rate during each of the
At about the same time two further events of past 3 years.
outstanding importance took place. The first
ANNUAL GOLD PRODUCTION
was the conversion of more than £2,000,000,000 of the public debt of Great Britain from
Union of United
a 5 percent on to a 3}£ per cent basis, which was
South
Canada
World
States
Africa
announced in the second half of June and met
Year
with immediate response; such a measure was
Millions
welcomed not only because it helped to alleviate
Thousands of fine ounces
of dollars
the British budget, but also for the downward
influence which it exercised on long-term inter- 19151
9,096
918
22,594
4,888
467
368
9,149
2,503
1,233
17, 786
est rates. Further, the successful outcome of 19231924394
9,575
2,529
1,525
19,050
the Lausanne Conference in July, the value of 1925394
9,598
2,412
1,736
19,031
1926400
9,955
2,335
1,754
19,369
which it is hard to overestimate, revealed will- 1927.
402
10,122
2,197
1,853
19,446
405
10,354
2,233
1,891
19,583
ingness by the reparation creditors—in the first 19281929_
405
10, 412
2,208
1,928
19,585
place France-—to make very large concessions 1930420
10, 716
2,286
2,102
20,293
458
10,878
2,396
2,694
22,168
and it meant the elimination of one of the 1931.
1932.
494
11, 559
2,513
3,051
23,884
most serious political hindrances to economic
recovery.
Record year prior to 1932.
These are outstanding measures. But attenAmong the gold producing countries the
tion must not be concentrated on them alone.
A close examination of developments would influence of the new gold was particularly
show that the large volume of international helpful in Canada. Since the departure of
credits was further reduced, that strenuous sterling from the gold standard, and the simulefforts were made in many branches of public taneous depreciation of the Canadian dollar,
and private economy to balance revenue and the gold production of the Dominion has been
expenditure, to establish equilibrium between bought by the Government at the prevailing
costs and prices, to render assets more liquid, market rate. The large production of 1932,
to reach agreed arrangements for postponing or $63,000,000 at par, gave to the producing comscaling down debt payments, to overcome the panies approximately $70,000,000 in Canadian
difficulties resulting from the liquidity crisis, currency, and greatly aided the Government in
and to maintain control of the currency posi- meeting its maturing obligations punctually
tion, even when foreign exchange restrictions and in supporting the exchange. In the Union
were, in the interests of trade, gradually re- of South Africa the production of gold made
laxed. One marked feature of the period was possible the maintenance of the gold standard
until the last week of 1932 when, however, the
the unparalleled volume of gold movements.
large outflow of funds caused by speculation
depleted the reserves and forced the country to
GOLD AND SHORT-TERM CREDIT MOVEMENTS
suspend the gold standard. Under an agreeWhile the international movement of goods ment with the mines the South African Reserve
registered an unprecedented decline in 1932, Bank had up to that time purchased the newly
gold movements reached proportions never produced gold at par, which enabled the bank
within a short space of time to recover the losses
before experienced.




1

JUNE

1933

357

FEDERAL RESERVE BULLETIN

In the following table an attempt has been
it incurred through the depreciation of sterling
made to indicate for each quarter of 1932 the
and to reconstitute its capital and reserves.
Whereas production has increased, the de- amount of gold derived from production and
mand for gold by the arts has fallen to a very from India and China, the amount of gold used
low level and, even more important, India and by the arts, as well as the increase or decrease
China, instead of absorbing a substantial part of gold in the reserves of central banks and
of the newly mined gold, have continued to governments, in order to obtain a rough estiexport gold previously hoarded. In the 3 mate of the amounts hoarded and dehoarded
months of October, November, and December in the different periods:
1931, gold to the value of nearly $96,500,000
was exported from India; during 1932, Indian
Degold exports amounted to a little more than
hoardIncrease ing(+)
$193,000,000, a sum not greatly inferior to the
Gold
Gold
(+)or or
from
used
decrease hoardvalue of South African production, which was
TMAf
(
prO"
India by arts IN 6 1
Millions of dollars
-\P ing(-)
$239,000,000.
ducand
(estigold
(outtotal
tinn
Lion
China mated)
reside
The great volume of "new" gold which beserves India
and
came available during 1932 from the mines and
China)
from India had its effect not only upon those
countries in which it originated but also upon
1932
those to which it passed. The entire Canadian
118
First quarter
64
-12
+41
170 +210
production was exported directly to the United Second quarter
122
44
-12
154 -151
-305
127
58
—12
174 +345
+172
States, but that of South Africa was, as usual, Third quarter
127
Fourth quarter
68
-12
183 +199
+15
sold in London. In addition, almost 78 percent of the gold exported from India was sold
in London (approximately 19 percent being
Although some of the figures included in the
shipped directly to the United States and about above table are admittedly only estimates and
3 percent disposed of in the Netherlands and although the increase or decrease in reserves
France). The bulk of the South African and may be influenced by the methods employed
Indian gold offered in London was sold against for accounting gold in transit, etc., the figures
gold currencies, usually dollars or francs, de- shown in the last column may be regarded as
pending on whichever was the stronger. In sufficiently approximate to illustrate the movethe case of the South African sales a large part, ments during the year. The recovery of
and in the case of the Indian sales practically sterling in January and February 1932, the
all, of the proceeds received in these gold cur- reorganization of the banks in Germany, the
rencies was thereafter sold for sterling.
hopes for a spring revival of trade and inIt would seem as if the sterling acquired from dustry—all tended to sustain confidence during
the sales of South African gold was on the whole the first quarter. The new gold which became
limited to the amount needed for the current available during that period was allowed to
requirements of South Africa in London, and reach the central banks and some gold even
for that reason no extra support was given to came out of hoards. In the second quarter,
the pound by the gold coming from that coun- under the influence of untoward happenings on
try. The effect upon sterling of the Indian the financial markets, and in the absence of any
gold exports was quite different. These exports clear evidence of better trade, disappointments
enabled India not only to meet its foreign pay- soon were felt; apprehension for the dollar
ments without resort to borrowing in London, brought about by legislative proposals of an
as would otherwise probably have been the inflationary character and by the party struggle
case, but also to reduce its liabilities and in- over the budgetary situation caused foreign
crease its balances in sterling. In this way holdings in the United States to be converted
very marked support was given to the pound into gold, and the pessimistic outlook prevailand through it to those currencies which more ing as to the possibility of solving the reparaor less follow the movements of the British tion question, all resulted in a sharp increase in
exchange. The flow of Indian gold has, more- hoarding, so that not only did central banks
over, provided an extra source of supply to receive no new gold but they actually lost
met the extensive demands for European and several hundred millions from their reserves.
American hoarding, which made themselves In June the withdrawals of gold from the
felt intermittently during the year under review. United States came to an end for the year 1932;




VJOIQ

358

FEDEKAL RESERVE BULLETIN

at the same time the debt conversion scheme
was launched in England and a gratifyingly
rapid settlement of reparations was reached at
Lausanne. The public, impressed by these
events, not only stopped hoarding, but, in
addition, released substantial amounts of the
previously hoarded gold which flowed back to
the central banks. During the last quarter of
the year, under the influence of reopened discussions about interallied debts and the break
in the sterling exchange, confidence slowly
waned, and a renewal of hoarding in the second
half of November had by the end of the year
almost reabsorbed the large amount dehoarded in October. For the last quarter as a
whole, however, all the new gold available went
to monetary reserves.
The total increase in the monetary gold
reserves of central banks and governments for
1932 was $603,000,000. This means that, in
spite of the hoarding which took place, monetary reserves received new gold during the year
in an amount 22 percent greater than the total
gold production of the record year in the history
of the world. And although European central
banks during the first half of 1932 converted
more than $700,000,000 of their dollar holdings
into gold, the gold reserves of the United States
were only $6,000,000 smaller at the end of the
year than they had been at the beginning.
But in the first quarter of 1933 the anxiety
caused by the banking crisis led to a reduction
in American gold reserves, later, however, to be
replenished as a result of a series of antihoarding measures.
The increase during 1932 in the gold holdings
of the central banks in France, the Netherlands,
and Switzerland alone amounted to about
$652,000,000, and thus exceeded by about
$48,000,000 the increment to total gold reserves
in that year. The Bank of England also acquired gold in 1932, but, after the payment of
the war debt installment due on December 15,
the bank's gold reserve fell below the figure at
which it had stood at the beginning of the year.
New acquisitions during the first few months of
1933—the period of the year when sterling is
seasonally strong—have again increased the
gold holdings of the Bank of England to a figure
exceeding £170,000,000. Other central banks,
in countries not on gold, have shown tendencies
to add to their gold stocks. An increase of
over $39,000,000 is registered in the holdings of
the State Bank of the Union of Soviet Socialist
Republics in 1932 in spite of gold exports to
Germany amounting to $46,000,000. On the
other hand the Bank of Japan has reduced its




JUNE

1933

gold stock since the beginning of 1932 by the
equivalent of about $22,000,000 to meet foreign
payments. With regard to countries other
than those mentioned above, gold movements
have occurred on a very moderate scale; often
no change has taken place throughout the year.
It is now possible to show the combined
effects on central bank reserves of the main
factors which have influenced them since 1931,
that is to say: the strain to which debtors were
exposed during the height of the liquidity
crisis; the conversion into gold of foreign exchange held by central banks; and the large
supply of new monetary gold. The following
chart [omitted] sets out the development which
has taken place.
At the end of 1932 net foreign exchange
holdings of central banks amounted to only a
quarter of the amount they had reached in the
spring of 1931 before the outbreak of the
financial crisis. This decline is the outcome
of two separate developments:
(a) Central banks in debtor countries, which
had accumulated foreign exchange, employed
this exchange as a first line of defense for
meeting foreign payments when the need arose.
It may be estimated that perhaps in all an
amount of about $482,500,000 was employed
for this purpose.
(6) Central banks which had at their disposal foreign exchange not required for immediate payments have to a very large extent
converted these holdings into gold. It would
seem that conversions under this head approximated some $965,000,000.
During 1932 a few central banks again
acquired foreign exchange but in the first
quarter of 1933 substantial conversions of
foreign exchange into gold were again effected,
partly in connection with the anxiety caused
by the American banking situation.
It will be seen from the chart that the total
monetary gold reserves held in Europe, the
United States and Japan have risen by about
$965,000,000 from March 1931, to the end of
1932. The combined monetary reserves, consisting of gold and foreign exchange, fell, however, by more than $579,000,000 as a result of
the abrupt decline in foreign exchange holdings.
The new gold which has become available
has naturally tended to flow to the financially
stronger countries, which, therefore, have on
balance not been involved in the decline.
Experience has shown, however, that even the
country which possessed the largest gold
holdings—the United States—has twice found
that the legal provisions governing the utiliza-

JUNE

FEDERAL RESERVE BULLETIN

1933

tion of its reserves were too inelastic in a period
of sudden movements; in consequence its
monetary authorities were given greater latitude in their management. In other countries
liberalizing amendments have been made in
central bank statutes. Thus, the minimum
legal ratio of the Austrian National Bank was
reduced from 24 to 20 percent in August 1932.
In Poland, the minimum legal ratio against
notes and other sight liabilities, which had been
40 percent of gold and foreign exchange (of
which 30 percent in gold), was, under the new
provisions adopted in February 1933, reduced
to 30 percent of gold (alone) against notes and
other sight liabilities in excess of 100,000,000
zloty ($11,000,000).
In the course of the year I have on several
occasions drawn the attention of the board of
the Bank for International Settlements to these
changes in central bank statutes and have emphasized the great importance of a development
which enhances the power and freedom of
action of central banks. The Preparatory
Commission for the Monetary and Economic
Conference was undoubtedly correct when it
stated in its report that " present-day legislation in many countries renders much gold
unavailable for international use/ 7 I fully
share the opinion of the commission that some
steps can be taken which will permit more
effective use of central bank reserves, although
the note of warning sounded by the commission
must also be borne in mind, namely that the
greater elasticity must not be taken by countries with limited resources as an excuse for
the building up of a large superstructure of
currency and credit, for then the free margin
would be dissipated, and the purpose of the
reform—the strengthening of the position of
the central bank concerned—would not be
achieved. More and more the monetary experience has demonstrated that the true use
of gold in the modern world is to serve as a
medium of international payment when the
exchanges or the international balances are
adverse; if the international gold standard is
to be reconstituted, as it must be, practice
should take account of this lesson and central
banks should combat any conception that gold
is properly employable as a store of wealth,
or that its primary object is to assure internal
convertibility of notes so that all who will may
hoard gold coin on demand, to the detriment
of the public good and of general economic
welfare. In this connection a more general
employment of the gold bullion standard would
appear desirable.
177784—33




3

359

The increased elasticity of central bank
reserves, to which I have just referred, is particularly desirable in order to enable the banks
to cope successfully with the problems created
by the large volume of short-term funds susceptible to rapid movement from one country
to another. During the period covered by my
last report—April 1, 1931, to March 31, 1932—
monetary developments were largely determined by mass withdrawals of credits from
debtor countries, the total liquidation of international indebtedness reaching, within a single
year, the high total of approximately $15,400,000,000, a liquidation made possible partly by
the new monetary credits arranged during that
year. In the following period the repayment
of short-term credits continued, but the scale of
liquidation, even if exceptional compared with
normal conditions, was smaller than in the
previous phase. Three outstanding series of
transactions may be specially mentioned: The
advances made in August 1931 to the British
market in support of sterling, already partially
repaid in February 1932, were finally extinguished in the course of the year; the substantial conversions of central bank dollar holdings
into gold, which began in the autumn of 1931,
came to an end in July 1932 but were resumed
in the first quarter of 1933 in consequence of
the domestic banking crisis; the advance to
the Reichsbank, arranged through the Bank
for International Settlements and amounting
originally to $100,000,000, was reduced by
several installments in 1932 and the first quarter
of 1933, the balance remaining being fully
repaid at the beginning of April 1933.
It has been computed that the total international short-term indebtedness outstanding
at the end of 1932 amounted to $5,800,000,000
and that approximately one half of this indebtedness represented liabilities which were in
fact governed by standstill agreements, moratoria, exchange restrictions, etc. As regards
these blocked accounts, some new facilities
have been granted in several countries to foriegn creditors enabling them to dispose within
defined limits of such balances either for disbursements in the debtor country (for instance
by tourists), or for purchases of capital assets,
or for certain payments in respect of so-called
" supplementary exports", i.e., exports from
debtor countries which might not otherwise
have been made. Though no final solution
can be expected from these minor measures,
they constitute steps in the right direction.
Apart from the outstanding liquidations of
short-term credits already mentioned, the flow

360

FEDEKAL RESERVE BULLETIN

of funds from market to market has been subject to certain abnormal forces which in many
respects have added to the difficulties of the
situation. It has been found, for instance,
that ordinary business balances have by force
of circumstances been influenced by speculative currents and form, so to say, a mass of
semispeculative funds. These balances have
been increased or reduced not only to meet
varying business needs, but also in anticipation of a further rise or fall in the exchanges,
when currencies have fluctuated appreciably
or fears have been entertained as to their
stability. This development not only puts
an extra strain on the individual trader, who is
compelled to form an opinion on complicated
exchange questions, but it also tends to provoke
erratic streams of funds between different
markets; even if the resultant position over a
longer period may not be substantially affected,
the day-to-day movements may be considerably
disturbed.
A not inconsiderable movement of funds—
and in this case of a more fundamental character—has arisen from the repurchase by nationals in debtor countries of their government and other bonds originally issued abroad.
Market quotations have in many instances
made such repatriation very profitable and
there is no doubt that larger amounts would
have been bought back had it not been for the
difficulty of obtaining foreign exchange in
countries where restrictions were in force. In
a few cases such repurchases were facilitated by
the authorities in connection with stimulating
" supplementary exports."
A converse movement has arisen in some
countries with depreciated exchanges; foreign
securities have been sold abroad, the seller
making a book profit or avoiding a loss in his
domestic currency. It is reported that part
of the foreign exchange bought by the Exchange
Equalization Account in Great Britain was
derived from sales of securities, and in Sweden
available statistics show that the substantial
increases in the foreign assets of the Riksbank
and the commercial banks during the year 1932
correspond almost exactly to the net export of
bonds and shares.
Further, there has at different periods been
a fairly considerable shifting of the holdings
which for security reasons were accumulated by
foreigners in centers with large monetary reserves. The most important instance during
the year was the liquidation in the New York
market from abroad, which brought the foreign
balances on that market down to a relatively




JUNE

1933

low figure. Sudden movements of this kind
have, at times, caused the exchange rates of the
countries affected to swing violently from one
gold point to the other. How important it is
that monetary authorities should be fully informed about the short-term liabilities of their
markets is increasingly realized and some
progress toward collecting such information
has been made during the year.
THE DOWNWARD TREND OF INTEREST RATES AND
SOME OUTSTANDING FEATURES OF CURRENCY
POLICY

(a) The downward trend of interest rates.—
That 1932 was a year of adaptation to the
changed conditions resulting from a financial
crisis superimposed on a business depression is
nowhere more apparent than in the movement
of interest rates.
During the financial crisis of 1931 central
banks with very few exceptions found it necessary to increase their discount rates, thus having recourse to the classical means of defending
their currencies and their liquidity positions.
In many instances rates then reached higher
levels than those in force in the boom year of
1929.
In the latter half of 1931 some reductions
in rates were indeed made by a number of central banks, but by those only which had applied rates so exceptionally high that even after
the reductions they remained, as a rule, well
above the normal; the changes of the autumn
of 1931 must, therefore, be regarded more as
a reaction from exaggerated crisis rates than
as evidence of real improvement in the situation.
The big downward movement, which was to
last throughout the year, started on February
18, 1932, with a reduction of the Bank of England rate from 6 to 5 percent, followed by
reductions in Sweden and Norway on the 19th,
in Greece on the 20th, and in the United States
on the 26th, of the same month. Downward
alterations in Europe continued in the following
months: in March, reductions in 9 countries;
April, reductions in 7 countries; May, reductions in 7 countries; June, reductions in 2 countries; July, reductions in 3 countries; August,
reductions in 2 countries; September, reductions in 4 countries; October, reductions inT4
countries.
After an interval in November and December, with only one reduction in the 2 months,
the downward trend continued in 1933, viz:
January (3 countries), February (1 country),

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1933

FEDERAL RESERVE BULLETIN

and March (3 countries). In the last month
the tendency was interrupted by the isolated
increase of the Federal Reserve banks, the New
York rate being raised from 2}i to 3}£ percent
on March 3, as a consequence of the banking
situation. The extraordinary uniformity of
the downward movement is illustrated by the
fact that from the middle of January 1932 until
March 1933 there was not a single increase in
the discount rate of any central bank in the
world.
The reduction of money rates may, in individual countries, be attributed to a return of
money from hoarding, a slight recovery in savings, a deliberate policy designed to augment
bankers' balances, the acquisition of new gold
by the central banks, or perhaps also, in some
instances, to governmental action; the dominating factor of the whole movement has, however, been the lack of demand for funds due to
continued stagnation in industry, commerce
and the capital markets. This can also be
seen from the fact that it is particularly, and
often only, investments which offer the very
best security on the short-term market (principally Government issues) that have primarily
benefited by the interest rate reductions. It
has, indeed, been singularly difficult, even
when the supply of funds has been plentiful,
to make the lower rates penetrate into other
branches of the credit structure, and, especially,
into the various categories of long-term investments.
Some progress has, however, also been made
in this respect.
Several governments have made use of the
occasion for debt conversions. In addition to
the outstanding example afforded by the
British conversion of more than £2,000,000,000
announced in June 1932, the Australian, Belgian, Danish, Dutch, French, Italian, Swedish
and Swiss Governments have all converted in
their respective countries part of the public
debt. By measures of this kind a signal lead
may be given to the market in helping to overcome the sluggishness of adaptation to a lower
level which often characterizes the rates paid
by long-term borrowers less closely connected
with the short-term money market than are
governments.
During the latter half of 1932 a distinct downward trend, embracing a number of countries,
can also be traced in the rates of savings banks
and similar institutions. In order to effect a
more uniform adjustment than would result
from purely individual action, central banks
have taken steps in many cases to coordinate




361

efforts in this direction as, for instance, in Austria, Czechoslovakia, Finland, Italy, and
Sweden.
In some countries, the government has intervened in order to bring about a decline in interest rates. This was notably the case in Germany, where the decline was made an element
of the policy of general adjustment in costs so
vigorously pursued during the winter of 193132.
Experience has shown that a decline in rates
which only reaches the very short-term market,
although it no doubt benefits certain borrowers,
is not an unmixed blessing, since financial
institutions then earn less on the large amounts
which, for liquidity reasons, they must keep
in quick assets, and consequently are likely to
be less able to reduce the rates for their regular
accommodations for industry. To achieve a
more widely spread reduction of interest rates,
long as well as short, is a task presenting considerable difficulty, for credit is based on confidence and without a policy that begets general
confidence in the whole credit structure no
fundamental durable adjustments would appear
possible. A reduction in the cost of capital
would, however, be of great value; indeed it is
indispensable in order to bring the price of
money into necessary equilibrium with the
other price changes that have occurred in the
economic structure and as a step in the direction of making possible some future improvement in the general level of commodity prices.
It would not only ease the burden borne by
debtors but should also facilitate borrowing for
new developments, and thereby the expansion
of economic activity.
In the international field the past year haswitnessed several constructive steps in the
right direction, such as the important reductions made in rates payable on debts coming:
under standstill and similar arrangements.
Furthermore, a number of helpful agreements
affecting principal payments as well as interest, at least for a transitional period, have
been reached during the year between important groups of long-term bondholders and various heavily indebted governments suffering
from the depression. It is only natural that
negotations for adapting to prevailing conditions the interest on external indebtedness
should give rise to many difficult problems.
Just as on the national markets the tendency
to reduce rates has so far been really marked
only with regard to assets offering the very
best security and has but slowly penetrated to
other obligations, so the valuation of risk in the

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FEDERAL RESERVE BULLETIN

international domain is a particularly intricate
problem. Insofar as the risk element is reduced by governmental measures designed to
improve political and commercial relations
between various countries—and Lausanne in
that respect set an example for the World
Conference to follow—the negotiations between debtors and creditors will be greatly
facilitated not only as regards interest charges
but also as regards such transitional attenuations in amortization provisions as the situation of the debtor justifies and the self-advantage of the creditor, on the long view, in
reality demands. In cases where the burden
of existing indebtedness has been so aggravated
by the present level of prices as to be incompatible with the equilibrium of the balance of
payments, agreements should be concluded
between debtors and creditors.
(b) Some main features of currency policy.—
At the end of 1931 after the wave of monetary
distrust had somewhat spent its force, a survey of the position would show that in Europe
only about 8 countries were still able to apply
a free gold standard; 10 countries had openly
suspended the gold standard, allowing the exchange rate to fluctuate widely outside the
former gold points; and the remaining countries
had introduced exchange restrictions of a more
or less complicated nature, these restrictions
being in most cases part of a program designed to maintain the exchange rates in the
proximity of the legal parity.
During the following period no such sweeping changes took place. There still occurred
isolated events of considerable importance,
which, with the dramatic exception oi the
American bank holiday and gold export restrictions toward the close of the bank's fiscal
year, did not engender those wide repercussions
characteristic of the previous period. The
following chronological table records some of
the main monetary events of the year under
review in this report.
April 19, 1932, Chile suspended the gold
standard.
April 26, 1932, Greece suspended the gold
standard.
May 11, 1932, Siam suspended the gold
standard, and pegged the exchange rate to
sterling.
May 18, 1932, Peru suspended the gold
standard.
May 18, 1932, Rumania introduced foreignexchange regulations.
May 27, 1932, Persia introduced foreignexchange restrictions.




JUNE

1933

June 23, 1932, Austrian National Bank
ceased to allocate foreign exchange required
to fulfill obligations abroad.
June 30, 1932, Paraguay introduced foreignexchange regulations.
July 1, 1932, New Zealand suspended its
foreign-exchange regulations.
July 1, 1932, Japan issued a decree to prevent flight of capital.
August 18, 1932, the legal cover of the
Austrian National Bank was reduced from 24
to 20 percent.
September 19, 1932, the German Government, after agreement with the board of the
bank, suspended for 2 years certain restrictions in the German bank law relating to the
Reichsbank's discount policy.
October 5, 1932, the statutes of the Bank of
Danzig were made more elastic.
December 28, 1932, Union of South Africa
suspended the gold standard.
January 31, 1933, in New Zealand the
premium of sterling was increased from 10 to
25 percent.
January 20, 1933, Denmark pegged its ex
change at about 22K kroner to sterling.
February 9, 1933, the statutes of the Bank
Polski were amended, involving a reduction of
the cover percentage.
February 17, 1933, signing in Berlin of the
third standstill agreement for German credits.
February 26, 1933, renewal of Austrian
standstill agreement.
February 28, 1933, Yugoslavia made provisions for the official publication of the premiums ruling on foreign currencies.
March 4, 1933, Hungarian standstill agreement renewed up to February 1, 1934.
March 6, 1933, United States introduced an
embargo on gold.
March 13, 1933, United States introduced
foreign-exchange regulations.
March 23, 1933, Austria provided for daily
quotations of the gold schilling applicable to
payments in respect of contracts in gold or
foreign currencies.
At the time of writing, the final outcome of
the banking crisis, which came to a head in the
United States during the first week of March
1933, cannot yet be discerned, particularly
as regards its repercussions in the international
monetary sphere. The immediate effect was
to provoke a renewed conversion into gold of
dollar balances held by central banks; but gold
which had been earmarked for central banks
and the Bank for International Settlements
was not made subject to the export prohibition

JUNE

1933

FEDERAL RESERVE BULLETIN

decreed on March 6, 1933. No longer supported by gold reserves, the dollar exchange
was left to find its own level on foreign markets, thus adding to the currency uncertainty
but at the same time making more imperative
the efforts to formulate and put into effect a
more clearly defined monetary policy throughout the world.
The attitude adopted by countries still applying a free gold standard without any restrictions, save those wisely inherent in the
gold bullion standard, may be found expressed
in the annual report of the Bank of France for
1932, in which this bank reaffirmed its intention
of adhering to the gold standard, adding the
following observations:
"The short-term funds, which have been
employed in France during the last few years,
may in fact be attracted again to foreign markets, when these have recovered their equilibrium. This exodus should not provoke any
disquietude if it marks the revival of international exchanges of goods and capital and
so long as it is not accompanied by the precipitous action of speculation and distrust.
The strength and extreme elasticity of the supporting structure of the franc indeed make it
possible to envisage without apprehension an
outflow of gold which would be due merely to
the regular functioning of the gold standard
regime.77
In the pursuit of such a policy some central
banks have, however, found it both possible
and useful to avoid redundant movements of
the metal by the technique of gold-earmarking;
the services of the Bank for International
Settlements have in several instances been
employed for that purpose. But no truth
needs more emphasis than the fact that it is
rational and necessary for gold to move from
the large stocks to those centers insufficiently
supplied, if the latter centers are to return to
the free gold standard and if anything like
normal international trade and international
movements of capital are to resume. Central
banks should actively combat the popular
fallacy to the effect that a "loss" of gold is
necessarily deleterious to the national economy.
Countries which have introduced exchange
restrictions have had to cope with the difficult problem of making control effective. In
Germany, for instance, a black rate in free
reichsmarks has been avoided; in fact it has
been possible in the course of the year to give
greater freedom to blocked balances without
endangering the mark parity.




363

In a number of Danubian countries, however,
another policy has gradually been adopted.
Exchange restrictions have in various ways
been so modified that the rate at which commercial transactions may ordinarily (or after
the granting of licenses for special cases) be
carried out has been either the actual "economic" rate in the market or some other rate
fixed below the legal parity. In these countries, where the system of foreign trade clearing
has been more developed than elsewhere, the
rates adopted for such clearings, originally
the gold parity, have been gradually modified
to correspond more closely to the actual market
valuation. The responsible authorities have,
in carrying out this new policy, been faced with
a very difficult task, it being imperative to
allow modifications only insofar as they were
economically required and, at the same time,
to avoid any sudden shock to confidence especially dangerous for the exchange position.
With regard to the developments in countries
which have suspended the gold standard and
allowed the exchange rate to depreciate under
the influence of the market, an important
measure was taken in Great Britain by the
introduction of the Exchange Equalization
Account, announced in the budget speech of
April 19, 1932, and constituted as from June 24,
of that year. This fund, which disposed of
£150,000,000, made available chiefly in the
form of Treasury bills (together with a further
£25,000,000, the remaining balance of an
earlier exchange account of the Government),
was to be managed by the monetary authorities
"in such a manner as they think best adapted
for checking undue fluctuations in the exchange
value of sterling." Although the Government
floating debt was increased by the full nominal
amount of the fund, the Treasury bills in fact
remained in the dossier of the Account until
amounts had to be provided in sterling as a
counterpart to purchases of foreign exchange.
Conversely, when foreign exchange was sold
by the fund, the counterpart obtained in
sterling would be available to reimburse
Treasury bills. While some major movements
of the exchange have not been avoided, the
operations of the fund have for shorter periods
had the effect of maintaining a more stable
relationship between sterling and gold currencies at the rates at which the Account bought
and sold foreign exchange.
Some countries which have suspended the
gold standard, like Portugal, Siam, and members of the British Commonwealth (except

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FEDERAL RESERVE BULLETIN

Canada), have kept a definite link between
their currency and sterling.
p Among Northern European countries a
strengthening of the position is noticeable
in Finland, this country having continued the
repayment of short-term liabilities. The Finnish mark, which had depreciated by about
50 percent in the autumn of 1931, has in recent
months been appreciably stronger.
In Denmark, on the other hand, the Government, after negotiating with various political
parties, decided at the end of January 1933
to allow a further depreciation of the exchange,
which has since been linked to the pound at a
rate of 22% kroner, giving a sterling premium of
about 25 percent. Earlier in the same month
a similar depreciation had been effected in the
New Zealand pound (from 10 to 25 percent
sterling premium).
The possibility of effecting a deliberate depreciation of the currency has been considered in a
number of other countries which have naturally
asked themselves what line of policy would be
in their best interests. The Swedish Riksbank
when dealing with this question in its annual
report for 1932 emphasizes that a policy of depreciation might, for Sweden, involve certain
serious risks.
" Experience has shown that a far-going
depreciation of a country's currency has
resulted in obstacles in the form of higher
tariffs and quotas having been put in the way
of a country's export. As to restrictions harmful to Sweden's export, reference may be made
to the increase in the British tariff as well as to
French quotas and the so-called surtax in
France. Demands for protection against Swedish exports among others have also been put
forward in other countries. The decline in the
export from Sweden of, for instance, paper and
pulp, which might be the result of new restrictions in the countries which import Swedish
goods, must lead to a further curtailment of
domestic production and increased unemployment."
This statement indicates the dangers of a
policy of forced depreciation from the point of
view of the interests of an individual country
adopting such a policy. From a more general
point of view there is no doubt that a " competition in depreciation" would still further
disturb international commercial and financial
relations, a development which in view of the
forthcoming Monetary and Economic Conference would be particularly harmful at the
present juncture. A convocation of the World
Conference at an early date should make it




JUNE

1933

possible to find solutions by action in both the
economic and financial fields.
CENTRAL BANK COLLABORATION AND THE BANK'S
CONNECTION WITH OTHER RECONSTRUCTION
WORK

The monetary convulsions of the liquidity
crisis have again brought to the forefront a
series of financial problems which intimately
concern central bank activities. In many
instances the problems that have arisen are
essentially national in character, but it will
generally be found that even when these
problems appear to be primarily a domestic
concern—for instance when they relate to the
internal banking structure—repercussions set
in which may be world-wide in their effects.
And the main problem—the restoration of an
international monetary standard functioning
in a satisfactory manner—presupposes, in the
opinion of all the responsible bodies which have
dealt with the matter, that certain essential
conditions in the international sphere shall be
fulfilled. What these conditions are and how
they may be fulfilled, whether by Governments or other authorities, has been a subject
of examination by the Bank for Internationa]
Settlements and its member central" banks
during the year under review.
*
*
*
*
*
On July 11, 1932, the board of the bank
unanimously adopted and made public a
resolution, which was widely commented upon
throughout the world and which is here reproduced in full:
1. The board of the Bank for International Settlements, recognizing the necessity of the reestablishment
between nations of a monetary system with a common
basis in order to facilitate international settlements
under more stable and secure conditions, is unanimously of opinion that the gold standard remains the
best available monetary mechanism and the one best
suited to make possible the free flow of world trade and
of international financing; it is desirable, therefore, to
prepare all the necessary measures for the reestablishment of the functioning of the gold standard.
2. In order to render possible a general return to the
gold standard, the board thinks it first necessary that
those measures should be taken by international collaboration and national efforts which will restore equilibrium in the economic and financial structure of the
various countries.
3. The realization of these measures depends in the
first instance on government action and, without that,
is beyond the power of central banks. To enable the
mechanism of the international balance of payments to
work again in a satisfactory manner, it will be necessary
to restore a reasonable degree of freedom in the movement of goods, services, and capital; to complete the
solution of reparations reached at Lausanne by a satisfactory solution of war debts; and to take the necessary

JUNE

1933

steps in each individual country to restore and maintain equilibrium in the internal economy, not only as
regards public revenue and expenditure, but also as
regards the cost of production and organization of the
internal money and capital market.
4. Little or no progress can be expected in the monetary sphere or toward the effective general restoration
of the gold standard as long as the main outstanding
problems are not definitely dealt with by the governments. As soon as sufficient progress is made in the
settlement of these problems, concurrently with action
on the interdependent economic problems, action in the
monetary sphere can also begin. The Bank for International Settlements will be available to the central
banks to serve as their common agency in the task of
monetary reconstruction.
5. The board further wishes to record that it has
found itself in substantial agreement with the conclusions of the report of the Gold Delegation of the League
of Nations of June 1932, as adopted by the majority of
its members. These conclusions form a starting point
for the elaboration of monetary principles, which may
be given practical application in the future.

All the events in the international monetary
and financial field which have occurred since
this resolution was unanimously adopted 10
months ago but reconfirm the principles and
views therein expressed. The restoration of an
international gold standard is indispensable
and goes hand in hand with the resumption of
normal economic relationships.
*
*
*
*
*
In addition to any special work connected
with financial reconstruction, the bank has
during the year maintained and developed its
contact with the various central banks. The
regular meetings of the board have, as before,
furnished an opportunity for general and private
discussions between the members of the board
and the staff of the bank, as also for the review
of current questions outside the more formal
business agenda. International collaboration
between central banks will in practice usually
consist of action which is taken by each bank
on its own market, but which is coordinated
to fit in with the general policy determined by
the main business trend. To arrive at a
common interpretation of the manifold indications of economic tendencies as a basis for a
coordinate policy, it is particularly important,
in a period of such rapidly changing conditions
as the present, that central banks should keep
in constant touch with each other, so that new
circumstances which occur may be given their
full weight. During the past year the personal
contacts at Basle and elsewhere have been
most helpful. Progress has been made toward
reaching that closer approximation of views on
monetary matters without which no fruitful
decisions in the monetary field may be expected.
In a special field the board of the bank had
to deal with an important question of central




365

FEDERAL RESERVE BULLETIN

bank activity. Under the provisions of the
agreement with Germany signed at The Hague
and giving effect to the New (Young) Plan,
certain important articles of the Reichsbank
statutes (including article 29) might be changed
only if the board of the Bank for International
Settlements, upon consultation with the German Government, expressed no objection.
Article 29, paragraph 3, of the statutes laid
down that the discount rate of the bank might
not be reduced below 5 percent so long as the
percentage reserve remained uninterruptedly
below 40 percent. This stipulation was considered to be an obstacle to the development of
German monetary policy and in September
1932 the Minister of the Reich for Economic
Affairs in a letter to the Bank for International
Settlements requested the board to approve
the suspension of article 29, paragraph 3, of
the Reichsbank law for a period of 2 years.
By a resolution taken at its meeting on September 9, the board decided that it did not
object to the proposal of the German Government, which the same day suspended the application of the paragraph until September 30,
1934, and on September 22, 1932, the Reichsbank rate was reduced from 5 to 4 percent.
*
*
*
*
*
CONCLUSION

In the last annual report, it was pointed out
that the monetary systems of the world, both
great and small, were in fact interdependent
and that internationalism in monetary matters
was not merely an abstract ideal, but already
an accomplished fact. The story of that year,
with its rapid succession of currency and banking difficulties in one country after another,
could not have been what it was except for the
essential unity of international finance and
monetary relationship which ignores political
and geographical frontiers The last annual
report continued: "And this interdependence
is not confined to the field of finance, but
penetrates much further into the whole economic structure of the various countries. The
indices of production, employment, trade and
profits show to an astounding degree the same
recurrent tendencies in almost every country
in the world. All the evidence available leads
to the conclusion that any hope that a single
country may achieve prosperity apart from the
rest of the world would indeed be based on an
insecure foundation."
During the year that has passed, this conclusion drawn at the end of the preceding fiscal
year has been reconfirmed. The efforts at

366

FEDERAL RESERVE BULLETIN

national self-sufficiency have but further deflated the volume of goods exchanged, of credit
granted, and of financial transactions undertaken, with a consequent progressive reduction
of purchasing power and a steady increase of
the real burden of debt. The world is at the
crossroads and must shortly choose whether
the future is to take shape along the lines of
closed national economies with reduced standards of living, or is to revert to the international
economy toward which we were in fact
naturally and healthfully tending in the days
before the war and for a period thereafter. If
the former alternative be chosen, then the
successful operation of an international monetary mechanism is deprived of its very foundation. The hopeful factor at the moment is that
the world, speaking generally, recognizes that
a choice must be made. Furthermore, the
political authorities have come to realize their
responsibilities, and have made and are making
deliberate efforts to cope with the situation,
and are prepared to meet together in the work
of reconstruction. Thus, the review contained
in this report has mentioned many of the steps
which in the past year have been taken by
political and monetary authorities. In one
outstanding instance—the Conference at Lausanne—these efforts resulted in an agreement
that represents a great example of collaboration
in settling an international problem. When,
on the other hand, the efforts have been made
in the national sphere, each government has
naturally formed its plans to safeguard the
equilibrium of its own country—internally as
regards the budgets and externally as regards
the balance of payments. It has not infrequently happened that measures which seemed
appropriate from the national point of view—
as for instance the imposition of higher tariffs
to improve the trade balance and thereby to
protect the currency—have proved harmful
from a general point of view and by their




JUNE

1933

cumulative effects tended to accentuate the
depression.
The World Conference will offer an opportunity for the various governments to frame
their economic and monetary plans in common; they may then find it possible and, indeed, to their best advantage, to revise their
previous lines of policy so as to adapt their
measures to the exigencies of the general situation. A preparation of common plans in the
economic and financial field presupposes a
desire to collaborate also politically. Meeting
after meeting, report after report, has stressed
the importance of a solution of major political
problems to reestablish that degree of confidence in international affairs without which a
recovery by concerted action cannot be expected. This is equally applicable to the
problems of a monetary character to which the
World Conference must address itself. There
the great desideratum is the general restoration
of a reformed gold standard without further
delay. As the board of this bank stated in
its unanimous resolution: " In order to facilitate
international settlements under more stable
and secure conditions, the gold standard remains the best available monetary mechanism
and the one best suited to make possible the
free flow of world trade and of international
financing. * * * Little or no progress can
be expected in the monetary sphere, or toward
the effective general restoration of the gold
standard, as long as the main outstanding
problems are not definitely dealt with by the
governments. As soon as sufficient progress
is made in the settlement of these problems,
concurrently with action on the interdependent
economic problems, action in the monetary
sphere can also begin. The Bank for International Settlements will be available to the
central banks to serve as their common agency
in the task of monetary reconstruction."

JUNE

367

FEDERAL RESERVE BULLETIN

1933

BALANCE SHEET OF THE BANK FOR INTERNATIONAL SETTLEMENTS AS OF MAR. 31,
Swiss
Dollars i
francs
(in thou- (in thousands
sands

Resources

I. Cash on hand and on current account with
banks...
III. Sight funds at interest
III. Rediscountable bills and acceptances:
(1) Commercial bills and bankers' acceptances
_
(2) Treasury bills
-.

2,199
10,141

275,172
257,461

53,108

532,633
IV. Time funds at interest:
(1) Central bank credits
(2) Other funds not exceeding 3 months' maturity..
_

11,396
52,543

102,798

169,042

32,625

I. Capital:
Authorized and issued 200,000 shares, each
of 2,500 Swiss gold francs
of which 25 percent paid up

3,216
35,841

14,424
70,762

2,784
13,657

23,481
35,301

4,532
6,813

5,841
616

1,127
119

29,032

7,876

1,520

IV. Short term and sight deposits:
(1) Central banks for their own account:
(a) Not exceeding 3 months
(b) Sight....
(2) Central banks for the account of others:
Sight
(3) Other depositors:
(a) Not exceeding 3 months
._.
(b) Sight..

254
519
1,038
1,812

153,640
76,820
68,481

29,653
14,826
13,217
57,696

196,930
254,796

38,007
49,176

451,727

III. Long term deposits:
(1) Annuity trust account
(2) German Government deposit
(3) French Government guarantee fund..

96,500
24,125

1,318
2,690
5,379

II. Reserves:
(1) Legal reserve fund
(2) Dividend reserve fund
(3) General reserve fund

500,000
125,000

298,941

16,661

150,425
VI. Other assets.

Swiss
francs Dollars i
(in thou- (in thousands)
sands)

Liabilities

9,387

185,703
V. Sundry bills and investments:
(1) Maturing within 3 months:
(a) Treasury bills
(6) Sundry investments
(2) Between 3 and 6 months:
(a) Treasury bills
—
(b) Sundry investments
(3) Over 6 months:
(a) Treasury bills
(b) Sundry investments

1933

87,183

13,301

2,567

3,330
3,285

643
634

6,615
V. Miscellaneous items
VI. Surplus:
Profit for the financial year ended Mar. 31,

Total resources

940,575

181,531

Total liabilities

_

21,539
14,064
940,575

181,531

* Conversion at par: 1 Swiss franc=$0,193.
NOTE.—The whole of the short term and sight deposits (item IV—Liabilities) are more than covered by immediately available assets either
in the currency of the deposits or in currencies free from exchange restrictions. Of the remaining assets (which are held against long term and capital
obligations, reserves and miscellaneous, items I, II, III, and V—Liabilities) an important part is in countries where exchange restrictions now prevail, but a substantial proportion of these assets offsets commitments expressed in the same currencies. Moreover, under article X of the Hague
agreement of January 1930 the signatories thereto declared the bank to be immune from any "prohibition or restriction of export of gold or currency
and other similar interferences, restrictions or prohibitions."

177784—33




4

368

FEDERAL RESERVE BULLETIN

JUNE

1933

FINANCIAL STATISTICS FOR FOREIGN COUNTRIES
GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS, 1913-33
[In thousands of dollars]
End of month
1913—December—.
1914—December.,.
1915—December...
1916—December-.
1917—December...
1918—December...
1919—December...
1920—December...
1921—December...
1922—December—.
1923—December...
1924—December^S—December...
1926—December...
1927—December-.
1928—June
July
August
September..
October
November..
December—.
1929—January
February. _.
March
April
May
June
...
July
August
September..
October
November..
December...
1930—January
February. _
March __,
April
May
June
July.
August
September.
October
November..
December..
1931—January
February..
March
April...May
June
July
August
September .
October
November..
December..
1932—January
February- _
March
April
May
June
July
._
August
September.
October
November..
December..
1933—January
February-.
March
April

Total (50
countries)
4,856,712
5,342,038
6,238,166
6, 625,958
7,139,964
6,807,718
6,794, 268
7, 238, 703
8,029, 962
8,402,141
8,635, 758
8,956,475
8,973,865
9,209, 519
9,568,389
9,761,673
9,852, 717
9,893, 545
9,939,225
9,963,462
10,012,597
10,027, 787
10,058, 862
10,082, 229
10,108,829
10,066, 279
10,133,483
10,146, 433
10,161,107
10, 250,047
10, 274,341
10,305,624
10,308, 012
10, 306,165
10,370,740
10,440,044
10,516, 690
10, 581,909
10, 622, 603
10, 680,032
10,713,954
10,795,953
10,832,675
10,861,149
10,903, 239
10, 916, 661
10,962,759
11,017,447
11,080,096
11,116,577
11,226,237
11,273, 228
11,220,939
11,296,874
11, 275, 868
11,140, 662
11, 250,877
11, 291, 201
11,342, 243
11,420,355
11,501, 687
11,517,126
11,417,851
11,350,336
11,421,859
11,564,347
11, 695,926
11, 790, 621
11,862, 309
11,897,323
11,924,946
v 11, 740, 668
v 11,939,157
* 11,975, 513

United
States i
1.290,420
1,206,487
1,706,922
2,202,157
2,523,084
2,657,885
2,517,722
2,451,182
3, 221,215
3,505, 551
3,833,735
4,090,067
3,985,399
4,083,380
3,977,181
3, 732,134
3, 737, 223
3,749,334
3,752,038
3,769,065
3, 753,936
3,746,111
3, 745,615
3,775,924
3,813,631
3,888, 702
3,930,948
3,955,862
3,974,446
3,994,971
4,007,939
4,022,954
4,002,898
3,900,160
3,921,222
3,987,806
4,060,523
4,131, 320
4,158, 704
4,177, 630
4,160,431
4,147, 685
4,159,474
4,184,348
4, 220,487
4, 225,109
4,285,341
4,308,964
4, 343,186
4,373,482
4.445,421
4, 592,901
4, 586,534
4,632,045
4,364,427
3, 905, 251
4,031,412
4.051,473
4,009,017
3,947, 301
3,986,088
3,955, 514
3,717,156
3,465,833
3,522,457
3,638,779
3, 748,107
3,819, 111
3, 885,094
4,044, 522
4,074, 219
3.808,474
3, 915,827
3,977,015

England

France

164,853
678,858
425,974
802, 583
388,532
967,950
395,841
652,886
416, 723
639,682
664,009
520,969
694,847
578,130
685,517
754,230
690,141
754,867
708,403
742, 740
745,543
709,480
748,156
710,394
694,761
710,968
729, 274
711,106
737,119
954,000
825, 524 1,136,409
842,987 1,172, 797
842,654 1,189,773
830,079 1, 200,403
795,463 1,206,800
774, 207 ! 1, 238, 720
748, 390 1, 253, 500
743,183 1,332, 621
734, 340 1, 334, 274
746,190 1,340,109
759,388 1,402,893
790, 646 1,434,580
774,143 1,435, 688
1.462,144
663, 611 1,526, 070
642,076 1, 544,904
637, 594 1,569,996
655,576 1, 599,684
709, 769 1,633,402
730, 632 1, 682, 503
736,433 1,679,934
755,008 1,668,229
794,904 1,660,152
764,946 1, 717, 308
763,466 1, 726,846
741,066 1, 775, 088
753, 529 1,851,872
760, 658 1,898,506
776, 226 1,991,635
761,943 2,037,103
718,422 2,100,242
678,809 2,175,996
685, 281 2,192,205
698,898 2,199,764
711,872 2.180,145
734,924 2,180,855
792, 724 2, 211, 884
642, 548 2, 289,574
648,904 2,295,692
656,092 2,326,370
660, 272 2,534, 210
587,435 2, 659,490
587,622 2, 699,431
587,693 2,807,702
587,742 2,942,314
587,907 3,011, 796
587,951 3,052,193
608,468 3,115, 233
662, 540 3, 218, 306
670,244 3,220,967
675,986 3, 223,777
678,492 3, 241,108
678,497 3, 250,033
678,497 3, 266,989
582,948 3, 254, 247
601,549 3, 220,958
692, 240 3,175,854
836, 254 3,152,027
904,872 3,169,948

Germany

Albania Algeria Argentina

Australia

AustriaAustria Hungary Belgian
Congo

278, 687

8,168
5,247
5,406
5,572
5,786
5,818
5,876
5,876
5,872

21,987
38,995
73, 552
78,351
85,787
104,007
116,850
122,369
124,197
127,309
131,218
129,620
162,488
109,555
106,001
110,748
111,089
110,890
107, 658
107,368
107, 708
109,410
109,654
110,184
110,480
111, 296
108,387
108, 288
111,012
116, 202
118, 756
112,528
97,482
89, 547
89,097
123,807
132,725
113, 653
92,043
97, 534
97,799
97,853
98, 541
79,451
74, 976
75, 316
75, 656
76,196
76,602
73,784
74, 252
75, 202
65, 584
51, 608
51, 848
52, 648
51,498
51, 598
51,498
51,698
51,568
51,608
51,938
51,898
42, 203
42, 283
42,393
42,053
41,953
42,073
42,113
42,073
20,909
3,500

251,421
213, 757
138, 758
58, 759
53, 717
53,072
45, 111
2 11
2 16

582,443
600,377
573, 249
538,861
259, 519
260,028
237.102
239,354
111,247
180,939
287, 763
436, 235
444,158
496,365
523,958
535, 505
570,958
603,317
624,916
650,127
650,091
650,032
639,020
450, 573
420, 311
455, 292
511, 733
520,095
526,909
530,977
533,652
543,838
547.157
582, 253
594,531
611.103
617,208
623,816
623, 774
623,831
590,458
519,327
519, 274
527,799
534, 575
544,313
553,434
564,154
569, 376
338, 505
324, 738
325,400
309,848
272,629
239,374
234, 378
225,772
221,167
209,294
204,574
205, 500
198, 232
182, 513
183,011
189,688
194,684
197,046
192,043
195,777
183.158
175,945
97, 791

19
303
251
258
254
251
249
244
244
241
238
235
266
265
263
263
262
268
346
342
341
340
336
333
332
334
351
351
349
348
346
378
378
376
371
369
367
365
363
361
477
595
594
789
989
983
953
956
959
959
1,072
1,073
1,072
1,070
1,065
1,059
1,063
1,064
1,063
1,059
1,060
1,057

5,866
5,863
5,851
6,054
6,047
6,076
7,220
7,255
7,264
7,276
8,075
8,085
8,087
8,087
8,088
8,089
8,088

8.089
8; 090
8,092
8,093
8,094
8,096
8,096
8,096
8,097
8,097
8,097
8,099
8,099
8,100
8,100
8,102
8,111
8,197
8,206
8,207
8,208
8,209
8,209
8,210
8,210
8,212
8,212
8,213
8,213
8,213
8,214
8,214
8,215
8,215
8,216
8,218
8,221

256,126
241, 539
238,906
265,540
288,020
304,466
336,707
473,913
472,415
472,529
466, 495
443,896
450,592
450,557
529,134
622,049
621,570
621, 221
620,873
610, 734
610, 486
607, 290
605,125
602,621
585, 340
569,198
560, 230
524,944
512, 734
507, 042
495, 600
476, 356
450,705
433,932
445,478
448,450
445,000
441,825
441, 276
440, 258
436, 366
433, 931
433, 935
429,074
417, 215
412,023
397, 289
389,575
378,439
369,906
362,160
350, 256
322,072
309,293
281,162
269,816
264,837
252,698
251,551
248, 863
248,862
248,857
248,857
248,816
248.816
248.817
248,817
248,817
248, 817
248,817
248,817
248,817
248,819
248,819

1,313
1,560
2,087
7,388
11,883
16, 490
16.715
18,918
18,918
23, 765
23, 743
23, 743
23, 743
23, 743
23, 743
23,727
23,727
23, 727
23, 727
23, 727
23, 727
23, 727
23, 727
23, 727
23, 727
23, 727
23, 727
23,727
23.716
23,714
23.717
23, 720
30,194
30,157
30.159
30,168
30.160
30.161
30,161
30,156
30,156
30,156
30,156
30,156
26, 668
26, 668
25,244
25,244
25, 244
25, 244
23,138
21,031
21,031
21,031
21,031
21, 031
21,031
21.031
21.032
21,038
21.041
21.042

690
790
790
840
840
940
991
991
991
991
991
991
991
991
991
991
991
991
991
1,041
1,141
1,141
1,141
1,141
1,141
1,141
1,141
1,141
1,141
. 141
,
, 141
, 141
,141
,141
^,141
,141
,141
1,141
1,141
1,141
974
2,170
2,170
2,253
2,253
2,253
2,253
2,253
2,253
2,253
2,201
2,079
2,054
1,934
, 717
,718
:,718
,718
,718
,718

1 Differences between these figures and those shown elsewhere in the BULLETIN for total monetary gold stock of the United States are due
to the exclusion from the former of gold coin in circulation.
2
Austrian account only.
v Preliminary.




369

FEDERAL RESERVE BULLETIN

JUNE 1933

GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS, 1913-33—Continued
[In thousands of dollars]

CzechoDenslo- Danzig mark
vakia

Belgium Bolivia Brazil

Bulgaria

Canada

1913—December
. _
1914—December
1915—December
1916—December,. __
1917 December

48,062
50,983
50, 742
50, 745
50, 748

2,593
2,566
2,598
2,709
2,766

89,610
44,805
24, 588
24, 588
24, 588

10,615
10,615
11, 773
13,124
12,159

116,572
99,126
126, 545
131, 558
139,823

1,330
1,330
1,330
9,042

19,666
24,506
29,833
42,847
46, 611

10,464
21, 552
35, 734
29,624
19,219

1918—December
1919—December
1920—D ecem ber
1921—December
1922—December

51,119
51,417
51,438
51,451
51, 901

7,081
6,077
6,075
6,080
5,862

26, 227
26, 227
32, 784
42, 619
46,152

12, 352
7,137
7,155
7,335
7,415

129, 761
129, 712
112, 605
95,073
146, 588

23,420
24,391
32,902
34,034
34,034

52,159
60,807
60,992
61,192
61,173

16 520
16,538
16, 539
16, 540
16, 540

94
1,476

8 234
8 227
8,227
8,227
8,371

1923—D ecember
1924—December
1925—December
1926—December
1927—December

52, 204
52, 543
52,855
86,214
99,878

5,862
5,861
6,553
6,899
6,919

48,669
53,803
54,305
56,329
100,746

7,629
7,792
7,981
8,464
9,198

127,169
151,467
156, 768
158,105
151,978

34,034
34,035
34,034
10,303
7,439

4,875
9,274
14,599
18,401
20,462

26,932
27,075
27,147
27, 221
29,845

1
1
1
2

56,171
56,145
56,085
56,007
48, 780

1,427
1 318
1,353
1,377

8,242
8,354
8 357
8,250
7,979

End of month

Chile

Colombia

2,835
4,515
12,458
20,474

Ecuador

Egypt

Estonia

Finland

-

6,973
8,236
8,230
8,232
8,227

-

2,046

16, 540
16,540
16, 591
17,456
18,459

1928—June
July
August _ __
September
October
November
December

110,120
111,639
111,850
112,214
112,951
115, 283
125,576

1

6,925
1
6,925
i 6,925
1
6,925
1
6,925
1
6,925
1
9,001

139,739
139,897
143,090
143,263
145, 564
148,351
148, 555

9,367
9,391
9,417
9,448
9,482
9,499
9,529

104,415
98,426
100,528
105,628
107,632
132,854
113,948

7,344
7,373
7,368
7,367
7,366
7,366
7,363

22,785
23, 749
23,887
23,993
24, 284
24,380
24, 271

29,799
30, 308
31, 284
32, 507
32, 505
32, 501
34, 352

1
1
1
1
1
1
1

48,736
48, 724
48, 712
46,334
46, 322
46,299
46,298

1.023
1,020
,018
L,018
,024
L, 130
124

18, 715
18,799
18,794
18,888
18,927
17,519
17,698

2,779
2,691
2,693
2,692
2,684
1,719
1,710

7,827
7,802
7,778
7,746
7,723
7,697
7,672

1929—January . _ .
February
March
April
May
June
July
August
September _
October
.
November
December
.

125,809
125,963
126,178
133,722
133,895
139,454
140,722
140,904
142,159
142,825
150, 561
163, 351

i 9,001
1
9,001
1
9,001
1
9,001
1
9,001
9,447
6,955
6,952
3,380
3,378
3,375
3,379

148,723
150,395
150,371
150, 379
150,532
150, 586
150,819
150,984
151,108
151, 272
151,439
150,395

9,566
9,589
9,660
9,728
9,799
9,853
9,927
9,989
9,971
9,956
9,976
9,997

78,646
78,333
77, 536
78,098
78,367
76, 277
76, 447
76,861
77,136
77,328
77,568
77,626

7,386
7,387
7,404
7,411
7,516
7,602
7,602
7,667
7,671
7,687
7,701
7,695

24,472
24,586
24,717
24,913
25,058
25,178
25,341
25, 532
24,291
22,867
22,771
21,774

34, 258
34, 269
34,264
34,287
34,277
34,253
34,268
34, 258
34,261
35, 277
37,256
37, 375

1
1
2
2
2
2
2
2
2
2
2
2

46,288
46,276
46,276
46, 281
46,266
46,252
46,241
46,242
46,233
46,226
46,217
46,204

,122
,121
,116
,119
L, 118
,117
,116
L, 117
,116
,115
L, 115
L, 114

17,805
17,805
17,820
17,899
17,973
17,998
18,116
18,230
18,408
18, 571
18,789
18, 794

1,680
1,671
1,673
1,681
1,687
1,692
1,696
1,699
1,702
1,705
1,708
1,717

7,655
7,640
7,617
7,601
7,588
7,587
7,589
7,588
7,614
7,649
7,631
7,608

163, 550
1930—January
February.
. 163,840
164,109
March
164,431
April
. . . .
166,767
May
167,040
June
167,349
July
168,153
August
173,408
September _
180,033
October
180, 293
November
190,754
December

3,377
1,421
1,425
1,425
1,433
1,387
1,727
998
1,001
1,003
1,007
1,014

138,646
126, 584
126, 523
89,793
89,924
89,389
79,820
68,710
64,694
31,832
20, 264
10,531

10,040
10,077
10,105
10,133
10,162
10,211
10,240
10,280
10,323
10,369
10,427
10,475

77,855
78,410
78, 520
79,313
80,115
80,857
94,223
100,417
109,854
121,827
129,148
109,843

7,694
7,697
7,695
7,696
7,692
7,689
7,675
7,673
7,509
7,504
7,577
7,495

20,702
20,746
20,004
20,328
20, 741
19,965
19,769
19, 593
20,000
19,144
17, 763
17,015

37,346
37,350
37,354
37, 360
38,856
38,861
41,859
41,855
41,835
43,803
45, 775
45, 765

2
2
23
23
23
23
23
23
23
23
23
23

46,186
46,184
46,174
46,150
46,166
46,152
46,153
46,150
46,143
46,129
46,120
46,107

,117
L, 117
,117
,118
,120
,120
,121
,121
L.121
1,123
1,124
1,131

18,922
18,957
19,016
19,041
19,085
19, 313
19,476
19,585
19,748
19,861
19,985
20,118

1,725
1, 729
1,732
1,736
1,742
1,746
1,749
1,751
1,754
1,756
1,753
1,758

7,596
7,584
7,666
7,649
7,631
7,606
7,590
7,617
7,596
7,579
7,612
7,591

1931—January
February.
March
April.
May
June
July
_ August.
September
October
November
December
1932—January
February
March
April
_
May
.
June
July
August.
September
October
November..
December
1933—January
February
March
April

191,299
196,847
200,075
200,868
201, 284
199,359
213, 798
220, 769
346, 402
356,871
355, 561
354,416

1,015
1,020
1,026
1,025
1,026
1,029
1,037
1,042
1,045
4,397
4,406
5,048

13
231
213
78
294
4
241
120
265
147
112
322

10,499
10, 529
10, 592
10, 675
10, 738
10,805
10,846
10,855
10,867
10,874
10,874
10,882

91, 506
93,705
96, 304
99, 277
101, 877
86, 579
86,888
88,618
82,943
86, 277
82,082
77,642

7,497
7,496
7,511
7,513
7,647
7,697
7,678
7,691
7,747
8,120
8,133
12,132

14,398
14,739
12,178
12,497
9,581
9,811
10,087
10,371
7,892
10,703
10,399
8,885

45,696
45,664
45,646
45,630
45, 616
45, 588
45,485
45,299
45,013
45, 949
46,413
48,837

23
23
23
25
25
25
25
2,058
3,058
4,241
4,250
4,249

46,081
46,056
46,050
46,081
46,074
46,049
46,042
46,003
43,984
43,999
38, 664
38,664

1,131
1,130
1,132
1,133
1,129
1,132
1,134
1,131
1,133
1,131
1,131
1,133

20,232
20,445
20,499
20, 548
20,608
20,776
20,860
20,810
20,880
20,885
20,885
20,885

1,754
1,750
1,745
1,747
1,749
1,751
1,751
1,754
1,755
1,755
1,756
1,758

7,582
7,574
7,607
7,594
7,579
7,614
7,604
7,590
7,597
7,697
7,656
7,653

352,263
351,280
349,463
350, 747
353, 282
356,705
365, 325
363. 507
358,955
362,903
362, 450
360,842

5,749
6,205
6,263
6,668
7,079
7,316
7, 213
7,270
6, 663
6,499
5,209
5,199

1,055
740
170
396
165
25
223
15
203
13
194
203

10,886
10,889
10,892
10,894
10,899
10,907
10,918
10,920
10, 923
10, 924
10, 927
10, 940

79, 781
77,625
76,749
76,910
77, 769
78, 291
78, 808
79,616
80, 932
84, 571
86, 348
84,126

12,148
11,379
11,486
11, 593
11, 595
11, 597
11, 662
11, 724
11, 330
10, 465
10,122
10, 231

6,483
6,913
7,328
7,733
10,681
12, 533
12,970
13, 444
12, 841
11, 265
11, 606
11,925

48,804
48, 729
48, 623
48, 609
48, 602
48, 593
48, 582
48, 574
49,137
49,126
50,114
50, 544

4,249
4,248
4,248
4,248
7,247
7,447
6,161
4,161
4,161
4,162
4,162
4,161

39, 357
38, 749
38, 749
38,747
38,747
35,889
35, 700
35, 699
35, 698
35, 698
35, 697
35, 693

1,125
1', 966
2,721
2,792
2,803
2,807
2,919
2,922
2,930
2,940
2,941
2,959

20,885
22,625
30,840
31,685
32,931
32,936
32,936
32,936
32,936
32,936
32,936
32,936

1,958
1,959
1,962
1,963
1,965
3,073
3,073
3,074
3,075
3,077
3,677
4,081

7,657
7,660
7,661
7,661
7,664
7,670
7,670
7,670
7,670
7,669
7,670
7,670

362, 086
365, 591
371,024
371,303

5, 212
4, 271
4,536

104
13
209
203

10,
10,
10,
10,

84, 260
83, 664
80,998
77,117

10, 276
10, 354
p10, 545
v 10, 656

12,380
12, 659
13, 297
13,899

50,
50,
50,
50,

4,161
4,363
4,465
4,465

35, 695
35, 695
35, 694
35, 692

2,961
2,962
2,956

32,936
32,936
32,936
P 2 , 9 5 6 P32, 936

4,083
4,781
4,782
4,782

7,670
7,670
7,670
7,670

P4,536

941
943
944
946

Monthly data not available; figures for June and December 1928 carried forward.
Preliminary.




583
583
575
569

370

FEDERAL RESERVE BULLETIN

JUNE

1933

GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS, 1913-33—Continued
[In thousands of dollars]
End of month

Greece

Guatemala

Hungary

India

Italy

Japan

Java

Latvia

Lithuania

Mexico

Nether- New
lands Zealand

Norway

10,398
15.118
12,053
29,452
31, 517

60,899
83,664
172, 531
236,216

25,325
30,250
33,827
37,414
39,161

11,892
10,290
13,837
33,027
31,193

225,622
349,971
556,475
610,822
605, 532

43,423
69,134
88, 214
58, 728
61,306

2,123
2,514

1,519

277,155
256,204
255, 729
243,600
233,879

39,506
38, 260
37, 263
37,394
38,367

32,691
39,590
39,472
39,474
39,474

218,092
221,045
221,585
223,531
241, 991

602,343
585,738
575, 768
561.810
541,870

62,869
53, 726
73,394
79, 369
71,640

3,188
4,553
4,547
4,558
4,570

1,645
3,078
3,229
3,136
3,320

233,876
202,854
16,683 178,080
4,689 166, 231
5,900 160, 796

38,290
37,579
37, 667
38,007

39,472
39,457
39,456
39,457
39,458

il9,097
119,097
119,097
119,097
119, 097
120, 301
123, 988

259, 047
263,079
263,085
265, 720
265, 730
265, 729
265, 732

541, 371
541, 371
541, 371
541,371
541, 371
541, 371
540,873

69, 911
69, 672
69, 397
69.119
68, 791
68, 549
68, 264

4,579
4,580
4,580
4,582
4,582
4,583
4,585

3,424
3,425
3,422
3,424
3,425
3,426
3,427

7,884
6,581
7,351
6,499
6,631
6,144
6,238

174,886
174,840
174, 846
174,838
174,865
174,777
174,692

35,886
35,827
35, 759
35, 584
35, 735
35, 238
34,868

39,391
39,381
39, 377
39,375
39,371
39, 362

35,776
35, 755
35, 754
30,891
30.891
30.892
28, 461
28,462
28,464
28.464
28, 464
28, 465

128,039
128,039
128, 076
128, 039
128, 076
128, 076
128, 039
128,076
128,076
128,076
128,076
128, 076

265, 739
266,083
269,617
269,597
269, 621
271,341
271,358
271,410
272, 272
272,474
272,960
273,001

540, 873
540.811
541,977
541,966
541, 966
541,966
540, 720
540, 721
540, 721
541,096
542,008
542,475

68, 030
67, 819
67, 281
67,208
65,052
64,863
59, 545
59, 325
58, 956
56,429
56,101

4,586
4,588
4,595
4,597
4,602
4,605
4,608
4,611
4,613
4,614
4,615
4,619

3,429
3,432
3,433
3,435
3,436
3,439
3,442
3,446
3,450
3,487
3,504
3,508

6,103
6,701
2,933
3,296
3,771
4,224
4,435
5,197
5,935
6,569
6,722
7,229

174, 685
174, 688
169,844
173, 746
175, 679
175, 586
180,664
178,152
178,101
177, 975
179,904
179,881

35,423
35,350
35,204
35,199
35, 219
35,097
35,160
34, 567
32, 756
31,851
32, 260
31,978

39, 358
39,356
39,352
39. 349
39, 341
39,338
39,335
39,331
39, 332
39,324
39, 317
39, 302

2,192
2,270
2,335
2,417
2,463
2,502
2,534
2,545
2,591
2,637
2,647
2,674

28.465
28, 443
28, 444
28,443
28,445
28,445
28, 445
28,446
28, 447
28,448
28,448
28,448

128, 258
128, 258
128, 258
128, 258
128, 295
128,295
128, 295
128, 295
128, 295
128,295
128, 258
128, 275

272,967
272, 989
273, 619
273, 708
273,817
273.925
274,030
275, 207
278, 292
278,396
278, 551
278,610

519, 943
477,123
453, 088
443,353
434,008
434,389
439, 738
432, 656
431, 278
413,977
408,833
411,770

56,100
55, 908
55,939
55,859
55, 851
55,960
55,928
55,810
55,804
55, 790
55, 786
55, 693

4,620
4,622
4,626
4,629
4,632
4,635
4,638
4,642
4,643
4,644
4,644
4,646

3,510
3,516
3,519
3,520
3,522
3,524
3,526
3,530
3,531
3,711
3,838
3,939

8,140
9,253
8,942
8,652
7,951

176, 692
175,676
173,649
173,637
173, 629
173,630
157,045
157,033
157,013
171,056
171, 315
171, 318

32,406
32,396
32,343
33,486
33, 482
33, 267
33,331
33,301
33,336
33,452
33, 394

39, 296
39,294
39,293
39, 289
39, 286
39,281
39, 278
39,270
39,260
39, 242
39, 245
39, 242

6,663
6,690
6,482
6,259
6,287
6,330
6,350
6,363
6,379
11, 289
11,290
11.301

2,679
2,679
2,696
2,692
2,745
2,646
2,610
2,594
2,619
2,246
2,228
2,255

28,449
25,886
21, 987
19, 554
19, 555
19, 554
19, 554
18,328
18, 327
18,329
18,329
17,838

128, 278
128,287
135, 229
141,398
147,264
150,660
158,022
161, 782
161,803
161,813
161,808
161,808

278, 716
279,088
279, 333
279,451
279,739
282,358
282,568
282, 658
286,430
292,976
295.926
295,945

414,864
416,878
415,439
418,806
422,449
424, 594
412,012
406,163
407,948
342,152
270,635
234,071

51,690
47, 719
47, 703
46,129
46, 203
46, 252
44, 266
44,329
50, 712
53,110
53,114
45, 227

4,645
4,646
4,646
4,647
4,651
4,651
4,642
4,635
4,636
6,085
6,087
6,089

3,939
3,941
3,945
3,947
3,947
3,949
3,952
3,953
3,954
4,761
4,763
5,014

4,467
4,460
3,990
4,007

175, 314
179,314
179, 285
180.890
4,745 180.891
4,595 199,961
1,920 235, 583
2,026 . 260, 387
1,515 282,397
3,103 336,020
2,765 362, 264
2,662 356,668

33,905
34,104
33, 774
33,778
33, 769
33, 764
33,847
33, 778
33,676
33,837
33,121
32,275

39, 241
39, 238
39, 238
39, 235
39,230
39, 227
39, 221
39, 216
38,907
46,037
42,304
41, 202

1932—January
February._
March
April
May
June
July
August
September.
October
November..
December..

11.302
Jl, 302
9,307
6,377
6,411
6,709
6,881
7,002
7,140
7,365
7,598
7,618

2,033
1,982
1,945
1,827
1,628
1,615
1,628
1,666
1,778
1,774
1,728
1,737

17,500
17,498
17,498
16,860
16,863
16,883
16,882
16,883
16,883

161,827
161,823
161,813
161.899
161.900
161.901
161,903
161.902
161,893
161,937
161,937
161,935

295.945
295.946
296,027
296,149
297,200
297,914
299,840
302,451
304,521
305,645
306,432
307,157

214,631
214,635
214,137
213,889
213.889
213.890
213,890
213,890
213,890
213,890
213,392
211,897

45, 250
45,199
42,064
41,213
41, 539
42,140
42,153
41, 658
41, 660
42,073
41,993
41,749

6,341
6,351
6,355
6,658
6,866
6,868
6,870
6,874
6,877
6,879
6,880
6,882

5,015
5,020
5,022
5,023
5,026
5,028
5,028
5,019
4,861
4,862
4,905
4,907

2,614
2,696
3,501
1,127
1,090
1,460
1,679
1,647
776
612
2,154
4,133

350,837
353,471
353,519
364,349
394,104
408,352
414,841
415,950
416,021
415,098
415,126

32,206
31,919
31,053
30, 236
30,352
29,764
27,934
26, 722
26, 532
26,644
26,644
24,600

41,602
41,604
41,609
41,609
41,609
40,158
38,163
38,162
38,162
38,661
38.661
38.662

1933—January—_
FebruaryMarch
April

6,755
8,399
8,923
11,397

1,728
1,711
1,717
1,739

161,935 308,161 211,897
161,934 324,778 211,897
161,933
211,897
162,048 342,780 211,897

41, 758
44,768
45,039
43,030

7,336
7,736
8,035
8,242

4,817
5,005
4,910
4,912

5,038
6,193
9,062
12,169

413,059
409,979
381,392
373,829

25,496
25,340
25,097
24,659

38,662
38,656
40.420
40.421

1913—December..
1914—December..
1915—December1916—December..
1917—December..

11,378
11,907

1918—December
1919—December
1920—December
1921—December
1922—December.

10,246
10,744
10,765
10,770
10,769

64, 231
128,819
116, 249
118, 341
118,341

203,426
200,426
206,128
211,994
219,446

1923—December..
1924—December..
1925—December..
1926—December. .
1927—December _.

12,007
12,358
12,658
13,554
14,728

1,769
1,740

108,609
6,872 108,609
10,365 108, 609
29,526 108,609
34, 432 119, 097

1928—June
July
August
September.
October
November..
December..

6,737
6,905
6,923
6,984
7,055
7,129
7,196

1,637
1,842
1,778
1,830
1,745
1,994
1,618

34, 375
34, 386
34, 386
34, 383
35,170
35,170
35,169

1929—January
February..
March
April
May
_June
July
August
September,
October
November..
December..

7,256
7,286
7,343
7,410
7,558
7,728
7,862
8,041
8,105
8,201
8,267
8,326

1,657
1,962
1,745
1,944
2,009
1,875
2,010
2,085
2,006
2,041
2,090
2,169

1930—January
February. _
March
April
May
_
June
July
August
September.
October
NovemberDecember..

8,370
8,422
8,153

1931—January
February. _
March
April
May
June
July._
August
September.
October
November..
December. .




4,825
7,086

7,840
7,544
7,355
6,714
6,791
6,835
6,862

266,846 64,963
270,569 64,062
67,881 264,089 68,187
78,127 224,172 113,411
90,118 208,207 229,980

123,921

16,888
16,888
16,889
16,889
16,890

5,009
4,228
4,933
4,697
4,414
4,430

I

JUNE

371

FEDERAL RESERVE BULLETIN

1933

GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS, 1913-33—Continued
[In thousands of dollars]
End of month

Peru

Portugal

Rumania

8,140
8,662
9,195
9,247
9,261

Poland

29,242
29,733
42,647
95,201
34,531

34,377 92,447
30,693 110,589
32,056 167,331
27,048 241,443
30,036 379,438

1913—December..
1914—December..
1915—December..
1916—December..
1917—December..

2,151
2,608
5,280
9,319

1918—December..
1919—December..
1920—December..
1921—December..
1922—December..

13,251
16,181
20,843
20,955
21,009

1,644
2,954
5,931
9,769

9,263
9,265
9,267
9,267
9,267

34,466
34,725
34,794
34,794
42,050

1923—December..
1924—December..
1925—December..
1926—December..
1927—December..

21,563
21,520
21,534
21,641
23,583

13,099
19,949
25,793
26,677
58,041

9,267
9,267
9,267
9,267
9,267

1928—June
_
July.
August
September.
October
November..
December..

21,495
21,520
21,520
21,520
31,520
21,520
21,520

67,463
67,605
67,643
67,661
68,183
68,407
69,685

1929—January
February..
March
April
May
June
July
August
September.
October....
November.
December. .

21, 515
21, 515
21,515
21,515
21,515
21,515
21,515
21,505
21, 505
21, 505
21,505
21, 510

1930—January
February..
March
April
May
_
June
July
August
September.
October
November.
December. _
1931—January
February. _
March
April
May
June
July
August
September.
October
November..
December..
1932—January
February..
March
April
May
June
July
August
September.
October
November.
December. _
1933—January
February. _
March
April

21,505
21,494
21,695
19, 560
17,161
17,193
17,228
17,266
17,408
17,466
17, 520
17,567
17,608
17,687
17, 689
17,724
17, 767
15,750
13,754
11, 235
12,529
16,613
16,917
16, 717
15,167
14,123
13,216
11,666
11,211
10,768
10,779
10,904
10,998
10,896
10,930
11,017
10,946
10,926
10,926
10,926

Siam

1
2

South
Africa

Spain

Sweden Switzer Turkey Uruguay U.S.S.R. Yugoland
(Russia) slavia
27,372
29,088
33,385
49,183
65,514

32,801
45,922
48,275
66,585
69,025

10,826
13,481
22,530
33,251
42,003

786,169
802,769
830,572
758,962
666,523

11,194
11,034
12f 381
12,321
12,310

33,340
35,540
50,441
49,361
51,692

429,541 76,532 80,041
471,516 75,351 99,779
473,762 75,516 104,780
484,660 73,631 106,058
486,971 73,428 103,283

46,718
56,756
57,307
56,813
56,812

0)
0)
0)
(0

2,609

12,306
12,23a
12,386.
14,318>
12,355

46,364
47,821
48,537
49,588
50,805

52,500
53,098
43, 594
36, 703
40,032

487,687
489,164
489,460
493, 282
502,302

72,853
63,508
61,647
60,162
61,685

56,812
56,813
56,815
56,823
59,319

45,043
73,047
93,858
84,605
97,043

13,286
13,965
14,657
16,620
17,133

9,267
9,267
9,267
9,267
9,267
9,267
9,267

51,495
51,598
51,698
51, 746
51,953
52, 056
49, 325

40, 265
38, 056
39,243
39,365
35,521
37,696
39, 273

503, 203
503,327
503,363
503,417
503, 459
493, 781
493,807

61,802
61,676
61,532
63,790
63,601
""l, 415

68,324
68,326
68,332
68,335

17,419
17,434
17,447
17,491
17,520
17, 544
17,566

69,705
69,736
69,811
69,905
70,061
70,276
70, 373
73,003
74, 531
76, 559
76,579
78,598

9,267
9,267
9,267
9,267
9,267
9,267
9,267
9,267
9,267
9,267
9,267
9,267

49,383
49, 614
51, 669
51,845
51,958
52,149
52,307
52,498
52, 617
54,418
54,975
55,112

38,153
37,749
39,934
39,170
40,183
37,701
37, 321
38,450
38,645
40,426
38,343
36,474

78,641
78,658
78,754
78,785
78,804
78,856

9,267
9,267
9,267
9,267
9,267
9,267
9,267
9,267
9,267
9,267
9,267
9,267
9,267
9,267
9,267
10, 607
10,998
11,160
9,601
9,672
9,762
11,851
12,032
12,613
12,837
15,415
16,120
16, 734
17,122
17, 270
17,404
17,528
17,600
17, 689
17,895
23,828
25,132
26,777
29,652
30,174

55,199
55,362
55,502
55, 592
55, 653
55,653
55, 653
55,653
55, 653
55,653
55,653
55,653
55,653
55,653
52, 562
52,709
52,912
53, 027
53, 207
53,403
53,585
53, 740
53,934
58, 050
58, 200
57,436
56,677
56,946
56,498
56, 554
56, 751
56,857
56,857
56,857
56,883
57,161
57,341
57,479
57,731
57,900

38, 513
37,375
35, 598
36, 640
35, 292
33,691
31,574
33, 301
32,576
33,837
34,859
32, 688
33.939
34, 508
31, 258
30,678
32, 036
30, 674
32, 664
31, 272
31,832
30,119
37,472
39,438
39, 769
36,669
31, 243
34, 323
35, 477
38, 256
34, 265
34, 518
31,691
34,985
33,700
34,907
38,066
49.940
53, 522
51,687

78,924
63,043
63,054
63,064
63, 084
63,111
63,124
63,156
63,660
63,683
63,702
63,717
63, 727
63, 736
66,648
67,058
67,364
67.375
68,046
64, 349
64,438
62,260
54,341
53,865
53,541
54,848
55.376
56,182
56,344
57,454
57,605
55,052
55,076

8,497
21, 786
23,214
22,504
22, 705
28,175
27, 587
27,887
27,887
27,887
27,887
27,887
27,887
27,887
27,887
27,887
27,887
27,887

103,669
97,642
90,140
91,050
99,785
86,434
86,734
90,309
90,659
90,536
102,874

68,346
68, 365

79,995
85,130
75,404
76,212
81, 502
91,697
91,887

63,171
63, 085
62,973
62,880
62, 759
62,638
62,593
64,935
64,840
494,887 64,685
494,889 64,448
495,148 65, 569

93,030
92,949
92,886
95,070
95,751
95,741
97,882
97,824
102,801
103,003
105, 352
114,832

68,464
68,464
68,475
68,479
68,479
68,197
68,200
68,202
68, 203
68, 203
68,204
68,205

92,036
92,036
92,026
92,484
93,132
93,158
103,424
118,862
131, 712
142,045
142,251
147,021

17,593
17,629
17,711
17,788
17,868
17,982
18,073
18,115
18,159
18,234
18,330
18,426

495, 299
476, 025
476, 351
476, 508
476, 778
476,876
477,021
477, 393
477, 657
477,895
474, 037
470, 531
466,005
466,121
466,875
467, 457
467, 715
468, 000
439, 020
439,137
439,320
433,555
433, 577
433,624
433,852
433, 920
434, 080
434, 413
434,847
435,164
435,265
435,381
435,454
435,624
435, 697
435,832
435,875
435,902
435,931
435,978

108,059
108,260
108,270
111, 702
111, 714
111,728
117, 752
123,376
123,450
128, 248
129,696
137,594
126,325
124, 096
124, 060
124,061
124,057
162,040
224, 591
229,432
327,851
422,197
424, 779
452,950
472,100
482,076
470,651
470, 654
493,180
503,080

68, 205
68,207
68, 205
67, 207
67,207
64,023
63, 215
60, 218
60, 218
60,218
60,380
60,447
59, 451
58, 224
58,249
58,331
58,331
58.331
57.332
56,897
55,827
52,967
52,966
52, 666
52,273
52, 273
51,932
50,684
50,569
50,443
50,195
49,695
49, 544
48,321
48,328
48,328
49,227
49,849
49,436
49,920

147, 006
149, 646
156,171
167,008
177,383
203,010
233, 752
249,087
249,010
249,010
249,102
248,881

18,481
18,529
18,585
18,645
18,725
18,787
18,817
18,884
18,921
18,947
18,990
19.025
19, 04&
19,068
19,117
19, 164r
19,228
27,112:
27,16827,183
29,159
30,917
30,934
30,948
30,957
30,966
31.021
31,031
31,036
31.022
31.026
31,026
31,028
31,035
31,103
30,991
31,001
31,001
31,001
31,014

493,916
493,957
494, 039
494,194
494, 528
494,871

65,467
65,380
65,315
65,228
65,155
65, 074
65, 024
64, 975
64, 900
64,807
64,734
64, 543
64,474
64, 390
64,318
64, 260
64.165
63,850
63, 725
61, 623
53, 236
57,206
55,157
55,160
55.166
55,180
55,178
55,191
55,205
55,206
55, 208
55,206
55, 203
55, 201
55, 201
55, 202
55.187
55.188
62,153
71,364

510,213
509,038
509, 038
492,679
476,940
476,948

4,117
6,063
6,258
6,453
6,465
8,782
8,605
8,738

9,716
9,850
9,979
489,392 10,131
459,883 10,286

248,866
259,106
259,338
261,895
261, 592
267,211
280,025
292,967
315,229
328,284
328,531
329, 323
329,601
330,980
334,912
349,146
356,746
2 367,692
2 367,692
2 367,692
" 367,692
2 267,692
2 367,692
2 367,692
2 367,692
2 367,692

Figures not available.
The August 1932 figure is carried forward for subsequent months, as no statement has been issued by the State Bank of the U.S.S.R. since:
that time.
•p Preliminary.




372

FEDERAL RESERVE BULLETIN

JUNE

1933

GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS, 1913-33—Continued
EXPLANATORY NOTE

The BULLETIN for May 1932, pages 315-318, pub*
lished a detailed explanation of the foregoing table as it
was then compiled. The explanation given at that
time applies in general to the present table. During
the past year central gold reserves in Belgian Congo
and Siam (as of the last day of the month) and in
Turkey (as of the last Thursday of the month) have
been added to the table; complete data for Brazil
beginning with January 1931 and for Mexico beginning
Country
Australia-

Institution
1913-19, Commonwealth Treasury: State note-issuing department.
1920-32, Commonwealth Bank
of Australia:
Issue department
Banking department

Belgian Congo.. Banque du Congo BeigeBolivia

Brazil.

Colombia

Danzig
Ecuador
Greece

Mexico

Siam
Turkey

Source
Letter from
Bank.

Items

Commonwealth

Gold.

1920-30, annual report; 1931, current balance sheeet; 1932, letter from Commonwealth Bank.
Letter from Commonwealth
Bank.
1927-31, letter from Banque du
Congo Beige; 1932, current
balance sheet.
Annual report

Gold included in item "Coin,
bullion, and cash balances."
Lingots et monnaies d'or
1913-28, Encaje en oro

1913-22, Caixa de Amortizacao.._ League of Nations, Memorandum on Currency (1913-23).

Government guarantee fund

1929-32, gold coin; gold bars;
1931-32, in addition "Gold
abroad."

i

1923-29, annual report; 1930, cur- 1913-26, ouro em deposito na
rent balance sheet; 1931-32,
Caixa de Amortizacao; ouro
em deposito em nossos cofres;
letter from Banco do Brasil.
1927-29, ouro em deposito na
Caixa de Amortizagao; 193132, gold owned by bank.
1927-30, Caixa de Estabilisacao— 1927-29, Wileman's Brazilian Re- 1927-30, gold at the Caixa de
view; 1930, letter from Banco
Estabilisacao.
do Brasil.
Anuario Estadistico de la Re- 1913-25, fondos de conversion;
1913-25, Cajade Conversion
publica de Chile, Vol. VI,
oro en areas flscales.
Hacienda (1925).
1926-32, Banco Central de Chile.. 1926-30, annual report; 1931-32, 1926-32, oro en el pais; in addicurrent balance sheet and lettion in 1931-32, earmarked
ter from Banco Central de Chile.
gold.
1923-31, Revista del Banco de la 1923-31, oro en caja
Banco de la Republica
Republica, March 1932.
1923-27, letter from Banco de la 1923-27, oro en custodia.
Republica.
1932, gold coin; gold bullion;
1932, current balance sheet
gold earmarked abroad.
1924-31, annual report; 1932, cur- 1924-30, Goldbestand: Miinzen;
Bank von Danzig
rent balance sheet.
1931-32, gold in barren und
Goldmiinzen.
Banco Central del Ecuador, Oro en boveda
Banco Central del Ecuador
Boletin Mensual.
Special report
Gold abroad.
1913-27, Banque Nationale de 1913, League of Nations, Mem- 1913, gold
orandum on Central Banks
Grece.
(1913, 1918-23).
1914-27, annual report
1914-27, espeees d'or.
1928-30, annual report; 1931, cur- 1928-31, or monnaye et en lin1928-32, Banque de Grece
rent balance sheet; 1932, letter
gots.
from Banque de Grece.
1932, gold coin; gold bullion.
1925-30, annual report
1925-26, efectivo en oro, moneBanco de Mexico
das extranjeros, oro; 1927-30,
efectivo en oro.
1931-32, letter from Banco de 1931-32, existencias en oro.
Mexico.
Kingdom of Siam
Letter from Ministry of Finance. Government gold reserves
abroad.
Encaisse: Or;
correspondents
Banque Centrale de la Repub- Current balance sheet
_
dan3 le pays: or.
lique.




Eate of conversion into
United States dollars
1913-31, 1 Australian
pound=$4.8665; 1932,
figures reported in dollars.

Gold coin and bullion.

1913-28, Banco de la Nacion
Boliviana.
1929-32, Banco Central de Bolivia. 1929-30, annual report; 1931-32,
letter from Banco Central de
Bolivia.

1923-32, Banco do BrasiL.

Chile

with July 1931, which were not available last year, have
been supplied; and changes in reporting current figures
have been made by Australia, Bolivia, Chile, Colombia,
Ecuador, and Greece. The tabular statement presented
below in continuation of that published in the BULLETIN
for May 1932, shows in detail how the end-of-y ear figures
for these countries are obtained. Information for Danzig, which was omitted from the statement last year, is
also given.

1 belgian franc=$0.0278.
1913-27, 1 boliviano=
$0.3893; 1928-31, 1 boliviano =$0.3650, except
that for " Gold abroad "
1 boliviano=$0.3125;
1932, 1 boliviano=
$0.1923.
1913-1926, 1 milreis=
$0.5464; 1927-29, 1 milreis=$0.1196; 1930, 1
pound sterling =
$4.8665; 1931-32, the
original figures in fine
grams converted at the
rate of 1 gram=$0.66462.

1913-32,1 peso=$0.1217.

1 peso=$0.9733; except in
1932 for earmarked
gold 1 peso=$0.9524.

1 Danzig gulden=$0.1947.
1 sucre=$0.2000.
1913-27, 1 drachma*
$0.1930; 1928-31,1 drachma =$0.0130. 1932 figures reported in dollars.
1 peso oro=$0.4985.

1931, 1 baht=$0.4424;
1932, 1 baht=$0.3418.
Original figures in fine
grams converted at the
rate of 1 gram=$0.66462.

FEDERAL RESERVE BULLETIN

JUNE 1933

GOLD PRODUCTION
[In thousands of dollars]

Year and month

Estimated
world
production

Production reported monthly
North and South America

Africa
Total

South
Africa

Rhodesia

430, 725 372, 726 221,526 11,476
1930— Total (12 mos.)
898
17,427
36 077 30,648
1931—February
18,791
886
March..
37,651 32,222
917
32,340
18,194
April . .
37,769
918
May
38,227 32, 798 18,901
18,594
926
June38,208 32, 779
947
July
38,158 32, 729 18,959
918
18,859
August
38,767 33,338
905
18,981
33,315
September
.
38,744
936
19,525
October
39,846 34,417
941
18,673
November. .
38,748 33,319
18,809
1,041
December
38,811 33,382
Total (12 mos.)
459,104 393,957 224,863 11,193
921
1932—January
19, 587
33,464
39,236
956
32,415
18,935
February..,
___ 38,187
996
March
39,895 34,123
19,877
19,593
976
April -. _ _
39,433 33,662
977
19,970
May
41,091 35,319
19,871
1,011
35,415
June
41,187
20, 268
981
July
41,572 35,800
1,019
August
42,734
36,963 20,475
1,041
19,888
September
42,138 36,366
1,044
20,157
October
42,351 36,579
997
20,190
42,091 36,319
1,080
20,118
December
p 41,650
35,875
Total (12 mos.)
*491,565 422,303 238,931 12,000
1933—January
20,152
1,008
P 40,995 p 35,223
989
18,176
February
p 37,308 p 31,537
March _ _
p 42,236 P 36,465
19,658 *l,032
April
p18,503

Far Eas1

Colom- Austra- Japan
United
West Belgian
Africa Congo Canada States Mexico
lia
bia
4,995

2,699

438
453
446

451
447

246
256
250

230
240

451
462
486
473
478
498

245
254
291
317
292
299

5,524

3,224

480
453
484
466
481
482
546

295
286
304
281
298
309
319

510
509

330
304

515
526
539

314
307
294

5,992
532
533
524

3,642
280
263
302

43,454
47,123 13,813
4,051
4,127
1,011
4,235
4,127
988
4,607
4,127
1,329
4,127
4,477
1,208
4,744
4,127
1,103
4,731
4,127
814
4,738
4,127
1,228
5,026
4,127
1,074
4,955
4,127
1,041
4,927
4,127
914
877
4,995
4,127
55,687 49,524 12,866
1
4,834
3,597 1,106
4,670 13,535
948
862
5,285 i 3,494
5,093 i 3,390 1,057
5,551 i 4,114
1,026
960
5,592 i 4,362
5,176 i 4,610
924
5,480 1 4,982 1,138
5,406 15,085
1,122
5,240 i 5, 271 1 1,091
5,220 l 4,858
1,158
5,614 i 4,651
1661
63,061 2 51,948 v 12,054
1
4, 341 i 1,199
4,826
4,718 i 3,039 i 1,034
* 5,378 1 5,209 1 1,137

India

3,281

9,553

8,021

6,785

299
340
278

869
863
936

702
689
694

580
594
561

329
353

919
1,092

716
663

354
353
256
452
389
312

933

668
654
692
679
667
664

500
516
562
673
590
579

8,109

6,815

628
657
741
671
653
647
692

534
525
545
590
567
603
585

4,016
450
386
404
380
447
405
455

524
456
455
415
353

5,132
513
344
487

1,229
916

1,240
1,321
1,181
12,134
,032
,063
1,131
1,164
,234
1,172
1,244
L, 221
L292
1,216
1,376
1,418
14,563
1,130
P 1,179
1
1,364

696
702

521
490

588
559

727
715
668

547
556
581

8,198
666
654
747

6,782
576
608
628

644

v Preliminary.
1
Figure reported by American Bureau of Metal Statistics.
* This aggregate for 1932 of monthly estimates by the American Bureau of Metal Statistics in New York City differs somewhat from the official
estimate for the year made by the Bureau of the Mint in cooperation with the Bureau of Mines. The official estimate is $50,626,000.
NOTE.—For comparable monthly figures back to January 1929 and for explanation of the table see FEDERAL RESERVE BULLETIN for April 1933,
p. 233. For annual figures of world production of gold back to 1873 see annual report of Director of the Mint for 1932, p. 151.

GOLD MOVEMENTS
[In thousands of dollars]
United States
Net imports from—
Month

1931—Total (12 mos.)_
1932—January
February
March
April
May
June
July
August
September
October
November
December
Total (12 mos.)
1933—J anuary
February
March
April
May *

Total
net imports

England

France

Germany

Belgium

China
Nether- Switzer- CanArgen- Co- British and
lands
land
ada Mexico tina lombia India Hong Japan
Kong

145,325 6,797 -344.514 36,026 -15,583 -50,327 -19,768 81,136 22,267 141,263 15,116 8.064
- 7 1 -12,553 - 6 , 2 5 7 -1,759 4,154 1,103 9,110 2,948 4,677
-72,950 - 3 , 1 9 9 - 8 3 , 783
-254 8,406
-236 -98,203
- 4 9 5 -17,859 - 8 , 6 7 2
950 1,157
2,575
-90,567
- 2 3 -37,532
2 -6,341
- 6 7,216 2,997 2,683
70
-24,671
- 6 6 9 -18,707
- 1 , 9 2 2 -24,527 - 3 , 2 8 6
-115 7,267 3,329
-195,514 - 7 , 0 4 7 -63,216 - 9 , 7 1 0 -19,930 -58,473 -53,554 4,699 1,510
175
- 1 1 6 -26,250 -23,168 -62,603 5,424
-206,047 - 1 , 9 1 0 -111,411
816
-225 4,573 1,284
-3,437
1,405 -21,513
240
6,003 -17,950
- 8 5,257 2,273
467
6,103
1,021
2,855
320
5,543
219 3,904 2,843
27,897
50
6,068
2,381
42
1,251
72
506 1,345
20,613
4,773
2,685
893
-1
5,622
21,740
1,376
7
4,697
8,082
744
16,357
7,546
100,859 51,928
10
-446, 213 53.585 -441.649 -13,356 - 8 2 , 571 -96,586 -118,273 64.574 20,087 12,991 3,240 26,597
5,274
634
1,067
15,123
15,193
128,465 50,248 29,490
802 - 1 , 614 4,206
552
-600
-15
9,446
i 17,776 i 3,310 - 3 , 709 - 1 , 5 4 6
483
990
-199 -5,005
- 6 8 1 8, *18
-250
-22,0811 - 8 , 9 3 5
-724
488
327
-9,973 - 2 , 1 9 1 - 8 , 9 9 3
-100
-21,770 -15,050

All
other
countries

34,240199,286 31.322
2,542
167 9,969
1,795
819 19,441
2,948
3,313
2,402 2,013
3,967
3,791 2,441
3,800
4,866 5,172
3,133
3,524 4,197
3,064
4,783
4,122
4,205
2,039
3,600 3,362
1,933
2,964
3,322
4,974 "3,"l24
3,353
39.043 49, 719
36,383
5,612 3,729
2,042
3,700
3,208
2,135
-15,413
1,281
-3,137
187
-6,807

P Preliminary.
1 Differs from Department of Commerce figure since $8,900,000 declared for export on Feb. 28 was not actually taken from the Federal
Reserve Bank of New York until Mar. 1.
» $17,054 exported to Italy.




374

FEDERAL RESERVE BULLETIN

JUNE 1933

GOLD MOVEMENTS—Continued
[In thousands of dollars]
Great Britain
Net imports from—
Month

Total
net imports

United
States

France

1931—Total (12 mos.).__ -143,729

-13,401 -319,989

1932—January
February...
March......
April
May
June
July
August
September..
October
November..
December..

-7,320
-6,182
-2,691
26,148
16,973
35,019
22,675
1,296
5,204
5,814
13,857
-29,582

-4,129 -64,955
2,256 -52,712
-119 -40,858
1,207 -17,795
7,541 -10,843
15,897 -9,035
-1,671 -11,361
-4,259 -20,269
-6,887 -27,521
-284 -24,895
-1,634 -13,519
-3,277
-58,561

81,211

Germany

-50,643 -297,040

Total (12 mos).
1933—January
FebruaryMarch
April
May p

-43,260
18,400
77,198
64, 767
106, 282

-48,314
- 6 , 559
11,821
-6
3,151

-2,109
-4,623
3,406
- 1 , 519
37, 205

Belgium

Netherlands

33,754 -37,050 -124,101

South
Africa,
Switzer- South British Straits Austra- Rholand
America India Settledesia,
lia
ments
West
Africa
-60,836

29,446
105
2,226
1,002

-4,188
-6,138

-247
-3,723
-7,382
-16
-214
-1,081
-753
-75
-214
-120
-88
-108

-71,376

-14,021

5,623 220,394

10,780 20,363 255,305

18,408

-79
-588
-893

9,495
7,175
9,178
10,278
11,881

587
793 16,530
554
794 27,815
461 22,659 28,923
1,001 20,316 19,343
1,935 22,106

-2,120
1,245
2.556
-2,082
1
9,150

-134
-76
-58
-756
3
-53
71
-53
- 1 8 -2,571
14 -2,767
4 -4,778
45 -4,015
5
-85
-104
-20
370
-476
-29 -1,104

-3,584
-7,537
-3,480
-1,955
-11,310
-9,394
-7,812
-10,438
-2,571

311 -16,896
-11
27
5,003
18,092
2,082

Another
countries

-17,471
-7,816
- 5 , 225
128
18,121

406
500
300
187
189
527
181

374
296

-1,601

11,280 33,260 236,921

3,904

1,555
371
1,750
1,083
915
794
9,661
175
1,505
870
830
854

1,426
887
420
1,734
760
3,207
5,010
1,326
1,853
831
602

45,986
30,661
24,340
17,393
11,565
12,812
14,204
14,279
13,009
11,973
10,488
13,684

746
781
602
899
803
772
2,122
829
584
943
710

17,062
20,884
20,616
18,965
26,246
19,351
19,712
25,866
18,378
20,006
23,326

Germany
Net imports from—
Month
All
other
countries
1931—Total (12
mos.)
6,755
1032— January.... 74,007 65,062
- 4 9,601
February.. 184,171 82,580
147,604 71,279
13,889 12,581
March
60,340
- 1 5 2,019
April
17,734 17,174 14,232 2,582 1,999
May
168,000 152,072 7,541 5,737 4,601
June
31,954 16,746 12,472
483
-5
July
42,940 24,149 16,241 5,382 - 1 7
August
4,424 3,918 1,448
September.
19,995
329
565
October
26,003 6,122
672
November.
34,479
2 -3,138
December..

-9,899
-1,592
' 17
428
-1,119
-8,234
-1,001

16
71
-16,224
-5,398
17
-5,800
-4,753
13
8
33
-6,169
17

249
-270
-186
4,306

278
4
49 -5,647
170 -2,776
-8,328
42
-7,539
-7,691
3,399
554
-5,435
4,622
1,
3,456
5,410
41
5,461
2,584
6,275
-3,331
6

2,809
-4,087
-1,791
-361

Total (12
mos.)
1933—January.... -37,428 -35,361
-144
February... -1,605
9,287
15,931
March
April v
48,252 18,583

2,900
2,559
1,005
2,283

33,814
2,80S
27, 778
67C

-1,126
-7,127
-23,356
- 6 , 377

1 $10,425 imported by England from Canada.
2 $29,233,000 imported by France from Spain in July.

-226
-376
-5C
10, 574

4,423
13,076
13,164
68, 74S

4
-14
-5,990 -10, 458
-7,377 -4,979
-51,915 -4,544
»$21,292,000 exported by France to Belgium.
9 Preliminary figures.

NOTE—Germany—The aggregates of the official monthly figures for gold imports in 1932 differ somewhat from the revised totals published
for the year as a whole. Since German figures for individual countries are subject to semiannual revision, those given for January-April 1933 are
preliminary in character. Figures for total net imports are final.




375

FEDERAL RESERVE BULLETIN

JUNE 1933

GOLD MOVEMENTS—Continued
[In thousands of dollars]
Netherlands
Net imports from—

Month
Total net
imports

United
States

England

France

Germany

198,619

39,413

117,591

-21,024

56,059

7,130

1931—Total (12mos.)---

7,747
8,810
6,342
2,799
55,317
47,324

-3,521
-9,900
-11,028
-771
-3,258
- 1 , 786
-276
-334
-1,708

-304
320
34
8,445
7,429
9,763
5,376
-1,280
-3,496
-61
-3,085
3,745

7,737
58,256
54,107
4,983
7,204
-13,797
-6,230
-4,857
894

-6,367
-1,916
-3,765
-9,668

3,100
5,446
3,870
867
5,470
8,397
5,565
8,715
1,198
1,252
1,939
4,251

Total (12mos.)

116,149

106, 623

50,070

1933—January
February. _
_
March___
April

1,898
933
-9, 320
-12, 565

-14,101
3,432
10, 785

14,069
-8,177
3,436
-567

-837
6,722
-19, 367
-12,429

52

2,009
-10, 300
4,986
2,283

-365

4,553

4,548

-713
-760
-5,242
-26
1,759
- 5 , 729
-1,313
963

-516
-354
-171
-2,325
-3,466
-5,849
-847
-579
-402
42
-537
-1,134

1,166
295
476
366
785
941
3,212
1,994
1,006
3,030
2,773

632
81
-77
147
107
24
-52
-2,222
-5,852
-14
-52
-68

-13,630

-16,137

16,423

-7,346

958
5,055
-7,009
-1,064

-976
881
-506
-264

-1,100
3,452
- 2 , 324
-870

2,199
-166
679

36,422 41,301

1,972
10
2,067 1,300
1,411 5,725
5,423 5,731
82 5,733 -3,952 2,769
65
- 9 5 -165
116
41,034
116
1,718 - 5 2
70,247 1,734 3,554 - 8 5
9,779
111 3,734 - 5 1
38
81
90
718
154
-361
-540 - 3 4
82 -3,087 -102
-50
-7
85 -2,347 - 6 7
5
320 - 1 1 1

5,653
17,658
4,698
2,538
46,051
80,872
14,993
1,503
-604
-3,385
-1,395
1,203

Total (12 mos.) 169,786 124,354 15,342
1933—January
February
March
April

4,658
8,502
24, 440
-12,078

-14
653

7,418 7,8

123 2,
82
6,987
907 21,306
-307 -10,745

379

Net imports from—

34
-1
-50

Total
net imports

United
States

England

All
other

InGold or depro- crease
duc- ( - ) i n
tion in governIndia 2 ment
eserve
in India

Increase
or decrease
(-)in
private
holdings
in India*

13,220 -95,875 -17,665 -72,691

19, 317 39,684 72,760

1931—Total (12 m o s . ) - 222,751

All other

British India

Eng- France Ger- South Neth- All
erland
many Africa lands other

1932—January
February
March
April
May
June...
July
August
September
October
November
December

British
India

-790
-1,628
-511
- 1 , 791
-3,415
-3,385
-482
-281
-923
-217
-188
-20

Net imports from—
Total
net imports United
States

Switzerland

-1,428
-384
-462
-821

Switzerland

Month

Poland

-12,727

-34,009

1932—January
February
March
April
May
June
July
August
September
October
November
December

Belgium

290
76
2,308
2,949
5,630
1,507
744
453
-280
480
837

- 5 , 521

6,832

-2,853 -21,429
- 4 0 7 - 1 7 , 269
- 9 1 -18,803
-11,229
-9,007
-167 -13,155
-374 -14,575
-2,775 -7,979
-5,978 -9,835
-4,820 -9,010
-2,420 -13,244
-18,002 -6,286

253
44
197
-374
72
95
—920
-1,388
-652
-997
-676

535
527
546
592
569
605
586
589
561
548
557
583

-23,512
-17,145
-18,144
-11,30ft
-8,365
-12,622
-15,851
-11,08534 -16,674
-13,934
-16,105
"—1 -24,380

-195,765 -38,061 -151,880

-5,823

6,798

127 -189,094

-10,247 -1,965
- 9 , 589 -3,082
-5,314 -5,833

297
-116
-1,576

576
610
628

13 -24,029
-707 -17,672
-18,697
—11,812
286 -8,935
-209 -13,227
- 8 7 -16,437
-260 -11,674
-277 -17,201
48 -14,482
461 -16,662
55 —24,964

10114,996
1,176 1,040
2,461 -937
3,802 - 2 , 236
994 - I , 1 " "

-1,'

P628

33,532 -122,575

18
-2
-7
86

-1

-11,340
-12,177
-12,094
v-13, 261

1 Exported from Netherlands to Czechoslovakia in August, $2,199,000; in September, $5,847,000.
2 Reported monthly production of the Mysore State plus $1,387 representing the average monthly production of the rest of India in 1931.
» Figures derived from preceding columns. Net imports plus production minus increase in Government reserves in India.
< $1,777,000 was exported from India to Netherlands,
e $1,640,000 was exported from India to Netherlands.
TP Preliminary.
NOTES.—Netherlands—The aggregates of the official monthly figures for gold exported to Germany and gold imported from the world in
1932 differ somewhat from the revised totals published for the year as a whole.
British India.—From April through June 1932 figures for net imports from individual countries are preliminary and subject to revision
Figures for total net imports, gold production, and increase in government and private holdings are final unless otherwise indicated.




376

FEDERAL RESERVE BULLETIN

JUNE 1933

GOVERNMENT NOTE ISSUES AND RESERVES
[Figures are for last report date of month]
1932

1933
Apr.
Argentine Conversion Office (millions of
gold pesos):
Gold
Notes issued *
Irish Currency Commission (thousands of
pounds sterling):
Legal tender note fund:
British legal tender and bank
balances
British securities
_
Notes issued
Consolidated bank notes: 2
Issued _.
_.
Deemed such under sec. 60 (4) of
currency act, 1927.—

Mar.

257
582

257
587

28
7,613
7,641
4,642
1,334

82
7,449
7,582
4,630
1,344

Apr.

Feb.

257
588

86
7,250
7,336
4,625
1,353

257
544

112
7,155
7,267
4,406
1,560

1932

1933
Apr.

Mar.

Canadian Minister of Finance (millions of
Canadian dollars):
Gold reserve against Dominion notes.
70
Advances to banks under finance act.
39
Dominion notes:
Issued
172
Outside chartered bank holdings.
30
Indian Government (millions of rupees):
Gold standard reserve:
181
Gold
352
Foreign exchange
_
Paper currency reserve:
Gold
263
1,116
Silver coin and bullion
388
Other assets
1,767
Notes issued

Feb.

Apr.

70
48

72
42

64
28

181
29

176
27

153
29

184
350

187
347

388
145

260
1,119
390
1,769

257
1,104
392
1,753

55
1,105
523
1,683

1 Includes a small quantity of subsidiary coin.
2 The figures of consolidated bank notes issued represent daily averages for the 4 weeks ended Apr. 1, Mar. 4, Feb. 4,1933, and Apr. 2,1932.
The figures for notes deemed to be consolidated bank notes are as of the close of business on these dates.

BANK FOR INTERNATIONAL SETTLEMENTS
[In thousands of dollars converted from Swiss francs at par; 1 Swiss franc=$0.1930)
1932

1933
Resources
Apr. 30 Mar. 31
Cash on hand and on current account with
banks
_
Demand funds at interest
Rediscountable bills and acceptances (at
cost):
Commercial bills and bankers' acceptances
_
Treasury bills
Total..
Time funds at interest—Not exceeding 3
months
_
Sundry bills and investments:
Maturing within 3 months:
Treasury bills
Sundry investments^
Between 3 and 6 months:
Treasury bills
Sundry investments
Over 6 months:
Treasury bills
Sundry investments
Total
Other resources
Total resources.




1932

1933
Liabilities

Apr. 30

1,558
4,554

2,199
10,141

2,991
13, 781

45,300
45, 837

53,108
49, 690

87, 554
30,147

91,137

102,798

117,701

18,379

3,907
13,843
4,596
6,905

35, 841

2,784
13, 657
4,532
6,813 }

48,927

17,925
11,521
4,584

f 1,127
116 \
119

188

29,368
196

29,032
1,162
181,173

219,549

Short-term deposits:
Central banks for own account:
Demand
Time—Not exceeding 3 months
Total-

19,968
31,707

49,176
38,007

61,747
58,017

51, 675

87,183

119, 764

1,940

Central banks for account of others:
Demand
_
Other depositors:
Demand
Time—Not exceeding 3 months
Long-term deposits:
Annuity trust account
German Government deposit
French Government guaranty f u n d . . .

2,567

11,855

643
631

634

769
1,066

29, 545
14, 773
11, 678

29,652
14,826
13, 217

29,677
14,839
13,249

Total
Capital paid in..

55,996
24,125

57, 696
24,125

57,765
20,941

254
519
1,038
8.370

254
519
1,038
6,514

108
211
422
6,648

145,191

181,173

219,549

Legal reserve fund
Dividend reserve fundGeneral reserve fund._.
Other liabilities

34,217
1,930

145,191

Apr. 30 Mar. 31 Apr. 30

Totfil liabilities...

377

FEDERAL RESERVE BULLETIN

J U N E 1933

CENTRAL BANKS
[For explanation of tables on this page, see BULLETIN for February 1931, pp. 81-83]
Liabilities of banking department

Resources of banking department
Bank of England

Gold (in
issue
department) >

Cash reserves
Coin

Millions of pounds sterling:
1932—Mar. 30
Apr. 27
May 25
June 29
July 27
Aug. 31
Sept. 28
Oct. 26
Nov. 30
Dec. 28
1933—Jan. 26
Feb. 22
Mar. 29Apr. 26
May 31 »

120.8
120.8
125.0
136.1
137.7
138.9
139.4
139.4
139.4
119.8
123.6
142.2
171.8
185.9
186.3

1.0
1.0
1.0
.8
.8
.7
.8
.9
1.1

Notes

Discounts Securiand
ties
advances

35.3
43.0
45.8
48.1
43.4
48.6
54.6
56.0
55.6
23.6
45.4
61.0
79.7
74.0
72.3

11.7
11.5
12.2
14.9
15.3
12.2
12.1
11.6
11.9
18.5
11.6
11.9
11.8
11.6
11.2

86.8
79.4
93.2
93.5
92.5
92.2
88.0
85.4
87.1
120.1
107.9
104.0
74.9
80.0
83.5

Note
circulation

Deposits
Bankers'

360.5
352.8
354.2
363.1
369.3
365.3
359. 8
358.4
358.8
371.2
353.2
356.2
367.1
371.9
374.1

54.6
58.3
77.5
86.6
88.2
79.5
80.6
77.3
90.5
102.4
103.4
98.3
92.8
100.9
77.5

Resources
Bank of France
Gold

Millions of francs:
1932—Mar. 25..
Apr. 2 9 May 27—
June 24._
July 29..
Aug. 26..
Sept. 30..
Oct. 2 8 - .
Nov. 25-.
Dec. 30...
1933—Jan. 27...
Feb. 24. _
Mar. 3 1 . .
Apr. 28...
May 26 *.

76,832
77,862
79,470
82,100
82,168
82,239
82,681
82,909
83,342
83,017
82,167
81,017
80,409
80,866
80,951

Foreign Domestic Security
exchange
bills
loans

12,632
11,800
9,001
6,332
5,482
5,389
4,977
4,984
4,853
4,484
4,434
4,401
4,376
3,846
3,887

4,820
4,690
4,160
3,929
3,905
3,467
2,604
3,637
3,266
3,438
3,142
3,303
3,352
3,805
3,449

2,716
2,735
2,700
2,715
2,747
2,761
2,783
2,764
2,500
2,515
2,537
2,580
2,714
2,649
2,675

Public

27.2
23.4
23.6
18.0
11.2
20.7
23.4
25.4
10.1
8.9
11.7
26.2
21.2
10.8
33.2

Reserves
Gold

Millions of reichmarks:
1932—Mar. 31
Apr. 30
May 31
June 30
July 30
Aug. 31
Sept. 30
Oct. 31
Nov. 30
Dec. 31
1933—Jan. 31
Feb. 28
Mar. 31
Apr. 29
May 3 1 *

879
859
863
832
766
768
796
817
827
806
822
769
739
411
372

Foreign
exchange

142
131
129
130
128
157
133
123
110
114
101
152

Negotiable
securities*

6,881
6,881
6,881
6,626
6,621
6,621
6,621
6,621
6,621
6,802
6,680
6,647
6,621
6,595
6,582

Other

8,371
8,697
8,684
8,634
8,994
8,878
9,686
9,145
9,008
9,196
9,172
9,119
9,801
8,861
(3>

97
100
77

18.2
17.7
17.8
18.0
18.1
18.2
18.2
17.7
17.8
18.0
18.1
18.2
18.2
17.7
17.8

Note
circulation

81,782
82,774
81,418
80,667
82,118
79,912
82,459
82,205
81,536
85,028
83,314
83,986
84,992
83,267

Deposits
Government

3,526
3,111
3,432
2,881
3,740
3,982
3,010
4,553
2,931
2,311
2,269
2,226
2,235
2,340
2,265

Other

24,962
24,827
24,128
24,621
22,033
23,426
21,876
21,229
22,969
20,072
20,474
18,731
16,850
17,181
18,393

Other
liabilities

1,980
1,953
1,917
2,167
2,025
2,035
2,009
2,071
2,153
2,041
2,074
2,124
2,093
2,109
(3)

Liabilities

Other
Treasury bills (and Security Securities
loans
bills
checks)

3,258
3,146
2,990
3,100
3,108
3,009
2,991
2,857
2,731
2,806
2,459
2,439
2,763
3,142
3,078

34.4
35.3
32.9
34.7
34.6
35.4
33.4
33.6
37.1
33.8
32.5
35.0
35.0
37.1
39.5

Liabilities

Resources
Reichsbank

Other

Other
liabilities

290
282
257
261
224
207
242
198
207
176
93
279
210
177
166

362
362
363
364
365
366
362
398
401
401
401
317
317

Other
assets

1,044
977
1,032

1,038
975
960
940

957
959
1,114
1,097
1,040
869
682

618

Note
circulation

Deposits

4,231
4,128
3,961
3,984
3,967
3,817
3,755
3,620
3,631
3,560
3,338
3,356
3,520
3,538
3,469

578
405
431
473
380
408
451
389
418
540
345
402
443
406
439

Other
liabilities

1,226
1,249
1,262
1,271
1,267
1,279
1,298
1,345
1,314
1,313
1,333
1,343
1,169
791
782

* In addition the issue department holds Government and other securities and silver coin as cover for the fiduciary issue, which is fixed by law
at"£260,000,000. From Aug. 1,1931. to Mar. 31,1933, an increase of £15,000,000 in the fiduciary issue (and securities held as cover) was authorized by
the British Treasury under section 8 of the Currency and Bank Notes Act, 1928.
1
Issued by the independent office for retirement of public debt (Caise Autonome d'Amortissement).
* Not yet available.
* Preliminary figures.




378

FEDERAL RESERVE BULLETIN

JUNE

1933

CENTRAL BANKS—Continued
[Figures are for last report date of month]
1933

1932

Central bank
Apr.
National Bank of Albania (thousands
of Albanian francs):
Gold_
Foreign exchange
Loans and discounts
Other assets
Note circulation
Demand deposits
Other liabilities
Commonwealth Bank of Australia
(thousands of Australian pounds):
Issue department—Gold and
English sterling
Securities
Banking department:
Coin, bullion, and cash
London balances
Loans and discounts
Securities
Deposits
Bank notes in circulation
Austrian National Bank (millions of
schillings):
Gold
Foreign exchange of the reserve..
Domestic bills
.-.
Government debts
Note circulation
Deposits
-_
National Bank of Belgium (millions
of belgas):
Gold...
:-Domestic and foreign bills
Loans to State
Note circulation
Deposits
Central Bank of Bolivia (thousands
of bolivianos):
Gold at home and abroad
Foreign exchange
Loans and discounts
Note circulation
Deposits
Bank of Brazil (millions of milreis)
Currency
Correspondents abroad
Loans and discounts
Note circulation
Deposits
National Bank of Bulgaria (millions
of leva):
Gold
Net foreign exchange in reserve. _
Total foreign exchange
Loans and discounts
Government obligations
Note circulation
Other sight liabilities
Central Bank of Chile (millions of

Feb

5,490
32,444
2,902
3,612
13,956
19,209
11,283
11,507
25,889

Mar.

5,488
32,683
3,020
2,593
13,480
19,996
10, 310

11,507
27,640

11,499
35,595

1,035
1,107 1,072
19, 543 21,892 16, 734
18, 051 17,835 16,886
34,746 35,411 29,402
74, 766 77,183 66, 595
43,122 42,272 42,135
150
39
279
659
912
179

150
39
287
660
919
170

150
39
301
661
859
184

2,671
783
363
3,620
338

2,669
804
363
3,559
418

2,630
775
363
3,513
384

23, 586
3,784
29, 576
40,994
38, 574

23, 466
5,052
29,862
39, 884
42, 230

553
135
2,634
90
2,846

569
130
2,622
110
2,957

534
213
2,609
130
2,861

1,520
3
61
833
2,873
2,730
1,380

1,520
20
95
778
2,873
2,595
1,592

1,520
6
102
718
2,873
2,452
1,665

Gold at home and abroad
Foreign exchange for account of:
Bank
Exchange commission
472
Loans and discounts
349
Securities
Note circulation
352
Deposits
Central Bank of China 2 (thousands
of yuan):
Gold
Silver
Due from banks abroad
Due from domestic banks
Loans and discounts
Securities
Other assets
Note circulation
1
Gold coin and bullion.
2
Items for issue and banking departments
v Preliminary.
« Corrected.

87

85

70
6
472
349
502
357

70
5
322
471
472
362




1933

1932

Central bank

2,415
88,353
10,384
40,923
118,874
7,667
32,760
45,249

1,952
66,825
9,398
64,271
108,819
8,061
29,859
46, 890

consolidated.

Apr.
Central Bank of China—Continued
Deposits—Government
Bank
Other
Other liabilities
Bank of the Republic of Colombia
(thousands of pesos):
Gold at home and abroad
Foreign exchange
Loans to member banks __
Note circulation
Deposits
10, 500 National Bank of Czechoslovakia
41, 746
(millions of Czechoslovak crowns):
Gold_.
_
1,057
Foreign balances and currency...
18,094
Loans and advances._
_.
16,286
Assets of banking office in liqui27,333
dation
-.
Note circulation
..
47,018
Deposits
_
Danish National Bank (millions of
kroner):
179
Gold
___
35
Foreign bills, etc
_
—
Loans and discounts
Note circulation
Deposits
113 Bank of Danzig (thousands of Danzig gulden):
Gold....
2,523
Foreign exchange of the reserve..
937
Other foreign exchange
Loans and discounts
3,653
Note circulation
221
Deposits
_
Central Bank of Ecuador (thousands
of sucres):
21,336
Gold at home and abroad
5,073
Foreign exchange
24, 572
Loans and discounts
26,924
Note circulation
12,400
Deposits...
National Bank of Egypt 2 (thousands
.303
of Egyptian pounds):
120
Gold.
_.
2,019
Foreign exchange
—
170
Loans and discounts
2,034
British, Egyptian, and other
G o vernment securities
Other assets
1,513
Note circulation
49
Deposits—Government
278
Other
747
Other liabilities2,965 Bank of Estonia (thousands of
2,827
krooni):
1,419
Gold
Net foreign exchange
Loans and discounts
95
Note circulation
Deposits—Government
70
Bankers'
20
Other
144 Bank of Finland (millions of mark250
kaa):
352
Gold
129
Balances abroad and foreign
credits...
_
Foreign bills
_
3,221
Domestic bills..
_
43,826
Note circulation.
6,904
Demand liabilities
24,732 Bank of Greece (millions of drach64,075
mas):
5,579
Gold and foreign exchange
19,980
Loans and discounts
27, 825
Government obligations
4,968
28,001
3,901
4,793
10,959
18,846
11,858

Apr.

Mar.

Feb.

Apr.

121,315 116,694
59,896 54,724
11,121 8,432
63,795 62,445
14,307
3,455
3,448
24, x81
20,609

79,133
14,64a
5,530
41,186

13,689 13,029
c 3,226 4,090
4,656 4,415
22,870 21,816
20,766 21,149

7,945
6,46?
13,432;
17,851
15,933

1,708
1,009
1,696

1,708
1,005
1,614

1,709
1,011
1,011

1,642.
1,194
1,172

0
6,182
733

0
6,272
601

0
5,602
625

6,740
375

133
10
72
337
44

133
11

133
10

331

316
50

145
25
146
33546;

22,933 22, 410
14,892 8,814
382
460
10,603 12,368
36, 219 34, 769
7,201 4,653

21,816
28,642
67a
8,420
41,244
14,166

14,781
1,059
39,332
26, 396
19,803

14, 810
1,846
37,978
25,533
20,180

13,95ft
171
15,971
18,561
5,728;

6,663
3,318
5,344

6,663
2,913
5,829

6,410
2,901
8,403.

34,673 33,332
3,322 3,825
17,872 17,852
5,798
21,160 21,314
7,622 7,597

30,174
3,498
19, 580
4,396
19, 620
7,792

17,845 17, 842 17,838
2,145 2,238 1,684
21,281 21, 581 22,180
31,530 31,088 31,194
3,247 3,591 3,387
7,105 7,237 6,660
2,638 3,128 3,240

7,325
12, 720
24,146
33, 509
4,915
6,881
2,102

22,934
11,511
1,334
10, 974
35, 924
5,552

304

304

304

772
337
759
1,178
392

773
336
785
1,183
431

772
328
783
1,126
586

598
224
77&
1,224
218

2,368
1,880
3,368

2,204
1,572
3,368

2,009
1,583
3,368

991
1,351
3,311

379

FEDERAL RESERVE BULLETIN

JUNE 1933

CENTRAL BANKS—Continued
1932

1933

Central bank
Apr.
Bank of Greece-^-Continued
b, Note circulation
_
O ther sight liabilities _ _
Liabilities in foreign exchange., _
National Bank of Hungary (millions
of pengos):
old
Foreign bills, etc
Loans and discounts
Advances to treasury
Other assets
Note circulation
Deposits
Miscellaneous liabilities
Bank of Italy (millions of lire):
Gold at home
Credits and balances abroad
Loans and discounts
Total note circulation
Public deposits
Other deposits
Bank of Japan (millions of yen):
Gold
Advances and discounts
Government bonds
Notes issued
Total deposits
Bank of Java (millions of florins):
Gold
Foreign bills
Loans and discounts
Note circulation
Deposits
Bank of Latvia (millions of lats):
Gold
Foreign-exchange reserve
Bills.._.
Loans
Note circulation
Government deposits
Other deposits
Bank of Lithuania (millions of litu):
Gold
_
Foreign currency
Loans and discounts
Note circulation
Deposits
Netherlands Bank (millions of florins):
Gold....
_...
Foreign bills
Loans and discounts
Note circulation
Deposits
Bank of Norway (millions of kroner):
Gold
Foreign balances and bills
Domestic credits
Note circulation
Foreign deposits
Total deposits.
Central Reserve Bank of Peru (thousands of soles):
Gold..
Foreign exchange.
Bills
Note circulation
Deposits
Bank of Poland (millions of zloty):
Gold—_
Foreign exchange
Loans and discounts
Note circulation
Other sight liabilities

v Preliminary.




1933

1932

Centra] bank
Mar.

Feb.

4,627
3,213
173

4,547
2,603
165

4,564
2,354
192

4,210
864
796

97
17
468
51
19
357
56
209

97
15
456
51
17
355
59
202

97
16
463
51
15
343
70
200

96
15
430
54
18
417
61
108

6,517
584
5,602
13,070
300
1,189

6,291
802
5,708
13,117
300
1,203

6,174
962
5,812
13,048
300
1,278

5,630
1,484
5,845
13,375
300
1,373

425
739
604
1,180
501

425
733
438
1,072
491

425
733
446
1,095
424

429
853
117
1,128
444

107
21
50
203

112
19
44
206
35

111
18
42
207
34

42
5
67
53
34
65
92

40

103
24
48
224
28
34
13
74
56
39
75
78

Apr.

Apr.

55

49
13
90
94
55

930
73
111
954
200

949
73
108
951
225

1,020
73
106
959
283

906

151
29
217
303
2

151
30
214
301
2
79

144
35
221
293
2
81

155
17
267
312
2

'39,020
825
20, 541
50, 663
4,441

41, 665
550
13, 337
46, 318
2,162

513
84
649
999
152

574
158
750
1,148
129

491
67
625
1,021
172

491
97
701
1,019
139

50
21
101
101
65

Bank of Portugal (millions of escudos):
Gold
_
Other reserves
Discounts and advances
Government obligations
Note circulation
Other sight liabilities
National Bank of Rumania (millions of lei):
Gold
Foreign exchange of the reserve. _.
Other foreign exchange
Loans and discounts
State debt
Note circulation
Demand deposits
South African Reserve Bank (thousands of South African pounds):
Gold
Foreign bills
Domestic bills
Note circulation
Deposits—Government
Bank
Other__
Bank of Spain (millions of pesetas):
Gold
Silver
Balances abroad. _
Loans and discounts
Note circulation
Deposits
Bank of Sweden (millions of kronor):
Gold
Foreign bills, etc
Loans and discounts
Note circulation
Deposits
Swiss National Bank (millions of
francs):
Gold
Foreign balances and bills
Loans and discounts
Note circulation
Demand deposits
Central Bank of the Republic of
Turkey (thousands of Turkish
pounds):
Gold...
Foreign exchange
Government securities
Other securities
Other assets
Note circulation
Deposits
Other liabilities
Bank of the Republic of Uruguay
(thousands of pesos):
Gold
Loans and discounts
Other assets
Note circulation
Deposits—Demand
Time
Judicial and administrative
Other liabilities
National Bank of the Kingdom of
Yugoslavia (millions of dinars):
Gold.
Foreign exchange
Loans and discounts __
Advances to State
Note circulation
Other sight liabilities
^

Mar. Feb.

399
326
1,053
1,859
647

671
416
329
1,054
1,916
587

9,650
731
52
10,082
5,726
21, 322
7,658

9,622
685
52
10,156
5,726
21,453
7,285

10, 621
18, 296
814
10,023
1,428
20,835
2,026

516
332
1,054
1,896
637

Apr.

379
538
319
1,058
1,873

7,528

9,491
355
20
13,382
5,767
22,904
4,439

14,437
815
9,847
1,368
19, 690
1,259

10, 262
10,555
1,100
8,604
1,744
15, 010
815

7,053
71
1,682
8,096
1,237
4,030
233

3,169
4,742
810

2,259
623
283
2,503
4,751
975

2,259
614
281
2,589
4,801
961

2,251
559
287
3,256
4,880
917

266
258
125
559
268

232
308
126
590
227

206
261
107
542
183

206
120
352
576
232

2,383

2,536
8
54
1,570
1,042

2,529
39
50
1,497
1,148

2,439
112
106
1,529
1,132

21, 769 21,441
337
682
153,740 154,300
28,332 28,154
31, 932 33, 779
162,428
18, 525 20,436
55, 501 54, 586

21,119
1,202
54,456
28,154
34,379
63,144
22,849
53,316

13, 634
2,966
156, 700
27,126
17,850
168,429
6,164
43, 684

2,259

53
1,557
903

9,580
615
19
10,156
5,726

48, 269 47,801 48, 201 49,008
101,103 103,897 U4,315 102, 675
41,995 41,032 39, 781 36,015
79,985
81,713 83,341 86,148
30,871
28, 440 29, 676 29,761
38,041
41,149 40, 090 38,064
3,010
37,055

2,990
36,633

2,966
35, 359

3,170
35, 630

1,762
177
2,343
2,413
4,502
940

1,761
170
2,349
2,412
4,564

1,761
190
2,388
2,411
4,586
873

1,763
304
2,248
2,304
5,045
353

380

FEDERAL RESERVE BULLETIN

JUNE 1933

COMMERCIAL BANKS
1932

1933

Country
Apr.

Argentina (millions of gold pesos):
Bank of the Nation:
Gold
Other cash
Loans and discounts
Deposits
...
Other banks in Buenos Aires:
Gold
Other cash
Loans and discounts
Deposits
Canada (millions of Canadian dollars):
Assets entirely in Canada:
Cash in vault*
Cash in central gold reserves
Security loans
Other current loans
Security loans abroad
Securities
Liabilities entirely in Canada:
Notes in circulation „
Individual demand deposits
Individual time deposits. _.
England (millions of pounds sterCash in vault and at bank
Money at call and short notice.
Advances and discounts
Investments - — .
Deposits
France (millions of francs):
Bills and national-defense bonds.
Loans and advances
Demand deposits
Time deposits
Germany (millions of reichsmarks):
Bills and treasury notes
Due from other banks
Miscellaneous loans
Deposits
Acceptances Japan (millions of yen):
Cash on hand
Loans
.
.
Deposits

- -

May

June

July

Aug.

Sept.

1
105
685
644

1
121
688
664

1
136
696
712

1
127
688
702

1
132
679
696

1
128
679
690

1
206
794
922

1
212
783
914

1
218
775
907

1
218
769
905

1
228
761
909

1
243
754
926

150

154

166

161

154

23
122
1,070
73
666

23
114
1,057
65
663

23
110
1,037
74
669

25
112
1,028
76
674

22
114
1,004
96
703

Oct.

1
128

Nov.

1
128

Dec.

1
114

Jan.

1
124

Feb.

1
123

Mar.

Apr.

1
126

668
681

671
680

664
659

664
674

660
665

658
678

1
248
747

928

1
250
745
929

1
263
740
937

1
258
739

918

1
258
739
923

1
260
737
913

151

161

2Q2

191

185

180

177

172

23
115
1,003
95
699

21
117
1,018
88
727

19
108
999

20
103
964

19
100
946

19

22
96
925

21
94
913

99
759

84
784

97
924
76
797

108

"112

«123

124

446

446

454

484

125

119

126

123

117

124

120

116

91
778
115

495
1,393

498
1,387

489
1,373

462
1,363

475
1,367

481

1,359

493
1,371

472
1,379

466
1,378

1,383

1,397

1,389

1,400

170
111
1,105

176
110
1,102

188
111
1,114

190
114
1,176

190
110
1,179

189
112
1,171

190
112
1,161

203
123
1,167

211
110
1,179

205
108
1,137

204
105
1,100

216
101
1 087

1,813

1,826

284

324

1,643

1,661

1,727

188
120
1,138
333
1,765

18,043
8,312
35,929
1,239

18,998
8,296
35,826
1,284

18,994
8,593
36,351
1,250

20,136
8,188
36,031
1,263

18,745
8,456
36,148
1,286

19,034
8,490
36,372
1,280

1,613
267
6,235
7,539
872

1,652
290
6,160
7,562
851

1,660
257
5,898
7,641
815

1,661
263
6,813
7,457
796

1,665
242
5,736
7,397
782

1,651
256
6,745
7,439
773

272

136

2,248
1,946

215

2,25f
1,949

156

2,252
1,963

117

2,234
1,973

348

212

2,219
2,027

367

197

2,187
2,019

396

1,853

409

456

455

480

79
793

492

1,859

1,944

1,943

1,917

1,886

19, 757 21,266
8,287
8,086
36,197 37,257
1,342
1,312

22,014
8,049
36,491
1,268

22,209
8,023
35,308
1,221

21,287
8,650
34,477
1,117

1,676
229
5 353
7,106
734

186
2,153
2,133

2,132
2,135

499

20,261
8,808
34,163
1,045

1,736
235
5,396
7,159
743

82
806

1,674
242
5,706
7,401
775
185

2,165
2,042

1,631
245
5,668
7,307
770
302

2,188
2,125

286

2,219
2,133

166

2,171
2,132

233

1,891

1,699
217
5 180
6,934
727
284
2,093
2,185

c Corrected.
* Gold, Dominion notes, and subsidiary coin.
NOTE.—Banks included are as follows: Canada—chartered banks; England—9 London clearing banks; France—4 commercial banks; Germany—5 Berlin banks; Japan—Tokyo banks.




JUNE

381

FEDERAL RESERVE BULLETIN

1933

DISCOUNT RATES OF CENTRAL BANKS
Date effective

In effect June 1,1931.
June 13
July 16
July 23
July 30 -Aug. 1
Aug. 12
Sept. 2
Sept. 21
Sept. 28
Sept. 29
Oct. 10 _
Dec. 10
Feb. 18, 1932
Mar. 9
Mar. 10
Mar. 17
Mar. 21
Apr. 9
Apr. 19
Apr. 21
Apr. 28May 2
May 12
June 30
Sept. 22.
Jan. 9, 1933
May 11
In effect June 1,1933.

Bank Bank German Bank Nether- Swiss
of
Reichslands National
of Engof
Bank
Bank
land France bank
Italy
2

5
7
10

3H
4V6

2

5H

2

7
2H

5

VA

6
2^

3
5

5

2

2M

4

4
3H
3H

4

July
Mar.
Jan.
July

8

May 25,1932
Aug. 23,1932
Sept. 19,1932

3H Jan. 25,1933
3
3
4
5H

6 Feb. 1,1933
9 Dec. 3,1932
4H Oct. 18,1932
3M Feb. 16, 1933

5

May
June
Nov.
Feb.

1,1931
24,1933
14,1932
5,1932

6,1933
1,1933
30,1932
1,1932

Country

Japan
Java
Latvia
Lithuania
Norway
Peru
Poland
Portugal

Rate
June
1

In effect
since—

6

Aug.
Mar.
Jan.
Apr.

18,1932
11,1930
1,1933
1,1930

6
6
6

May
May
Oct.
Mar.

24,1933
20,1932
21,1932
13,1933

4.38
4H

Rumania
6
South Africa.
Spain
6

Apr. 5,1933
May 15,1933
Oct. 26,1932

Sweden
3
U.S.S.R
8
Yugoslavia7

June 1,1933
Mar. 22,1927
July 20,1931

Changes since May 1: Danzig—May 6, down from 4 to 3 percent;
Denmark—June 1, down from 3}4 to 3 percent; Netherlands—May 11, up
from 2% to ZlA percent; Norway—May 24, down from 4 to V/% percent;
South Africa—May 15, down from 4 to 3 ^ percent; Sweden—June 1,
down from ZVo to 3 percent.

,*
4

8
5
33^
6

Finland
Greece . .
Hungary
India

7~~

Albania
Austria
Belgium
Bolivia

Danzig
Denmark
Ecuador
Estonia

3

6

4

In effect
since—

Bulgaria
Chile
Colombia
Czechoslovakia

15
10
8

6

Rate
June
1

Country

2

MONEY RATES IN FOREIGN COUNTRIES

Month

Bankers*
acceptances,
3 months

Treasury
bills, 3
months

1932-April
May
June
July
August
September.
October
November.
December—

2.19
1.44
1.05
.92
.74
.67
.82
.89
1.02

2.07
1.10
.85

1933—January-, _
February.
March
April

.87
.83
.62
.59

.76
.78
'.46

.55
.71
.82
1.04

.50

Netherlands (Amsterdam)

Germany (Berlin)

England (London)

Bankers'
Day-to-day allowance
money
on deposits

Private
discount
rate

Money for Day-to-day
1 month
money

Private
discount
rate

1.91
1.29
.99
.67
.73
.67
.71
.73
.81

5.12
4.87
4.75
4.58
4.50
4.25
3.87
3.87
3.87

6.31
5.96
5.76
5.75
5.75
5.55
5.00
5.00
5.08

6.17
5.91
5.70
5.49
5.82
5.55
4.94
4.80
4.91

1.02
.60
.39
.49
.37
.37
.37
.37
.37

.73
.73
.64
.61

3.87
3.87
3.87
3.87

5.03
5.00
5.00
5.25

4.98
4.86
4.97
5.05

Money for
1 month

.37
.37
.64
.66

B

Sweden
(Stockholm)

Switzerland

Belgium
(Brussels)

France
(Paris)

Italy
(Milan)

Hungary

Private
discount
rate

Private
discount
rate

Private
discount
rate

Private
discount
rate

Prime
commer- Day-to-day
money
cial paper

1.03
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.11
1.00

Japan (Tokyo)

Month

1932—April
May
June
July
August
September.
October
November..
December—

1.50
1.50
1.50
1.50
1.50
1.50
1.60
1.50
1.50

3.26
3.21
3.16
3.17
3.12
3.00
3.00
3.00
2.94

1.66
1.50
1.22
.99
1.02
1.00
1.01
1.00
.91

6.00
5.52
5.50
5.50
5.50
5.50
5.00
5.00
5.00

1933—JanuaryFebruary .
March
April

1.50
1.50
1.50
1.50

2.88
2.78
2.62

1.12
1.89
2.04
1.87

4.42
4.25
4.20
4.00

• Corrected.




4H-5
4^-4%
4 -4%
4 -4U
4^-4%
4 -4*4

Loans up Discounted
Call
to 3
money
bills
months
overnight
5 -7
4
4
4

- H
-5H
-5 V*

6.20-6.57
6.20-6.57
6.02-6.57
6.02-6.39
5.84-6.21
5.66-6.21
5.66-6.02
5.66-5.84
5.66-5.84

5.48
4.56
4.56
4.20
4.02
3.47
3.28
2.92
2.74

5.48-5.84
5.48-5.84
5,48-5.84

3.10
2.92
2.92

382

FEDERAL RESERVE BULLETIN

JUNE

1933

FOREIGN EXCHANGE RATES
[Monthly averages of daily quotations based on noon buying rates for cable transfers in New York. In cents per unit of foreign currency]
Month

Argentina

Australia i

Austria Belgium

Brazil

Bulgaria Canada

Chile

China

Colombia

Cuba

Czechoslovakia

Denmark

1932—May
June
July
August
September
October
November
December

58.3242
58.5205
58.5574
58.5695
58.5886
58.5835
58.5837
58.5851

293.42
291.15
283.40
277. 50
277.13
271.15
261. 50
261.77

13.9645
13.9600
13.9813
13.9696
13.9635
13.9550
13.9477
13.9581

14.0249
13.9366
13.8724
13.8735
13.8606
13.8940
13.8723
13.8460

7.1294
7.5008
7.5960
7.6221
7.6171
7.6214
7.6302
7. 6327

.7202
.7200
.7230
.7209
.7203
.7200
.7200
.7200

88.4430
86.7427
87.0658
87. 5513
90.2636
91. 2332
87.3000
86.5989

6.0000
6.0202
6.0250
6.0283
6.0414
6.0250
6.0276
6.0274

21. 7116
21. 3125
20.6400
21.0031
21.0404
20.8883
20.5937
19.4719

95.2400
95.2400
95.2400
95.2400
95.2400
95.2400
95.2400
95.2400

99.9299
99.9217
99.9186
99.9094
99.9118
99.9109
99.9237
99.9261

2.9650
2.9641
2.9589
2.9596
2.9594
2.9606
2.9619
2.9613

20.0654
19.9248
19.2044
18.4993
17.9781
17.6412
17.0613
17.0069

1933—January
February.
March »
April
May

58.5847
58.5804
58.2974
60. 4864
67. 9019

267.19
272.17
272. 73
284. 79
313. 07

13.9715
13.9867
14.0121
14. 0700
14. 5582

13.8629
13.9638
13.9803
14. 5285
16.2711

7.6352
7.6348
7. 6330
7.6348
7.6354

.7195
.7200
.7210
.7223
.7825

87.4621
83.5084
83. 5205
84. 7233
87. 5930

6.0275
6.0278
6. 0281
6. 0300
6. 2846

19.7916
20.1136
20. 7250
22.1953
24. 5193

95.2400
94.4191
86. 2100
86. 2100
86. 2100

99.9411
99.9790
100. 0162
99. 9322
99. 9196

2.9614
2.9632
2. 9743
3.1155
3. 5075

16.9097
15.2612
15. 3180
15.9502
17.5193

Egypt

England

Month

Finland

France

Germany

Greece

Hong
Kong

Hungary

India

Italy

Japan

Mexico Netherlands

1932—May
June
July
August
September.
October
November.
December..

376.8328 367.5140
374.1009 364.6648
364.0790 354.9564
356.4018 347.5721
355.9494 347.1062
348.5176 339.6163
336.0492 327.5267
336.1120 327.8679

1.7171
1.7019
1.5350
1.5114
1.4953
1.4823
1.4441
1.4239

3.9468
3.9363
3.9207
3.9187
3.9179
3.9264
3.9190
3.9033

23.7947
23.6878
23. 7176
23.7838
23.7814
23.7692
23.7536
23.7869

.6641
.6387
.6399
.6321
.6060
.6014
.5743
.5418

23.4337
23.3431
22.8893
23.2479
23.4293
22.9487
22.4062
21.3527

17.4384
17. 4740
17.4612
17.4507
17.4653
17. 4452
17.4356
17. 4265

27.3175
27.1647
26.6842
26.1577
26.2192
25.6800
24.7830
24.7923

5.1491
5.1162
5.1009
5.1144
5.1264
5.1195
5.1124
5.1088

31.9730
30.2856
27.4471
24.4944
23. 6314
23.0628
20. 6218
20. 7298

30.2540
26.8977
27.7321
28.5682
29.9159
31.1060
32. 2205
31.9923

40.5474
40.4411
40.2740
40.2443
40.1586
40.2217
40.1774
40.1680

1933—January
February.
March K..
April
May

344. 6451 336.1385
342.2073
343. 2800
357.9313
393. 2381

1.4577
1.4919
1.5153
1.5806
1. 7467

3.9034
3.9228
3. 9361
4.1019
4.5927

23.7703
23.8291
23.8519
24.3873
27. 3629

.5392
.5610
.5673
.5865
.6582

21.7525
22.0710
22. 7442
23. 7714
27.1586

17.4260
17.4359
17.4392
17.4812
18. 8766

25.4055
25.8336
25. 7900
26. 8721
29. 5729

5.1177
5.1156
5.1372
5. 3662

20. 7393
20. 7945
21. 2631
22. 0867
23 9967

30.1631
28.4212
28.3164
27.0201
28. 8721

40.1797
40.2691
40. 3572
41.9490
46.9507

Month

New
Zealand * Norway Poland

Portugal

Rumania

Spain

Straits
Settlements

Union of
Sweden Switzer- Turkey South Uruguay Yugoslavia
land
Africa 1

1932—May
June
July
August
September
October
November. _.
December

335.63 18.4823
333.03 18.0626
324.16 17.6386
317.42 17.4101
316.99 17.4470
310.15 17.1752
299.11 16.7252
299.42 16.8899

11.1810
11.1839
11.1885
11.1771
11.1800
11.1740
11.1769
11.1825

3.3267
3.3320
3.2240
3.1579
3.1481
3.0872
3.0293
3.0191

.5970
.5966
.5972
.5978
.5982
.5978
.5975
.5973

8.1169
8.2451
8.0518
8.0608
8.1044
8.1871
8.1730
8.1506

42. 2400
41.9567
40.9675
40.1042
40. 2475
39.4372
38.0026
38.0123

18. 7238
18.7049
18.2190
17.8485
17.8055
17.5334
17.4314
17.9108

19.5579
19.5141
19.4684
19.4528
19.3007
19.3041
19.2470
19.2354

47.5433
47.2115
47.5680
47.4413
47.3900
47.3466
47.3402
47.3397

1.7743
1.7436
1.6717
1.6903
1.5892
1.4094
1.3506
1.3448

1933—January
February
March*
April
May

292.13
272.87
273. 45
285. 48
313.86

17.2684
17. 5270
17. 5913
18.3161
20.0164

11.1872
11.1940
11.1834
11. 3755
13. 0873

3.0364
3.1017
3.1362
3. 2133
3. 5781

.5972
.5958
.5974
.6107
.7025

8.1777
8. 2446
8.4431
8.8804
9.9875

38.9884
39. 5818
39.6078
41. 2350
45.6611

18.2982
18. 2670
18.1884
18.8108
20. 2413

19. 2836 47.0260 « 340.63 47.3366
19.3707 47.1982 338. 90 47. 3363
19. 3716
339. 88 47. 3458
20.1281
353. 74 47. 7646
22. 5368
388. 74 53.1875

1.3555
1.3593
1.3714
1.4228
1.6073

47.5060 479.72
47.3550 479.89
47.1604 478.31
47.1011 477.50
47.1916 476.79
47.2680 475.85
47.2167 477.58
47.0127 »479.13

Monetary units and pars of exchange (in cents per unit of foreign currency):
Country

Monetary unit

Par of
exchange

Country

Argentina
Australia
Austria
Belgium
Brazil
Bulgaria
Canada
Chile
China
Colombia
».
Cuba
Czechoslovakia-..
Denmark
Egypt

Gold peso
Pound
Schilling
Belga
Milreis
Lev
Dollar
Peso
Yuan
Peso
d'o
Koruna
Krone
_
Egyptian pound._

96.48
486.66
14.07
13.90
11.96
.72
100.00
12.17
7 25.97
97.33
100.00
2.96
26.80
494.31

England
Finland
France
Germany
Greece
Hong Kong
Hungary
India
Italy
Japan
Mexico
Netherlands
New Zealand
Norway

Monetary unit

Par of
exchange

Pound
486. 66
Markka
2.52
Franc
3.92
Reichsmark
23.82
Drachma
1.30
Hong Kong dollar. 7 26.82
Pengo
17.49
Rupee
46.50
Lira
5.26
49.85
Yen
49.85
Silver peso
40.20
Florin
486.66
Pound
26.80
Krone

Country
Poland
Portugal
Rumania
Spain
Straits Settlements.
Sweden
Switzerland
Turkey
Union of South
Africa.
Uruguay
Yugoslavia

Monetary unit

Par of
exchange

11.22
Zloty
Escudo
4.42
Leu
.60
Peseta
19.30
Singapore dollar... 845.88
Krona
Franc
Turkish pound
Pound

26.80
19.30
439.65
486.66

Peso
Dinar

103.42
1.76

1 Monthly averages for Australia, New Zealand, and South Africa from May through December 1932 are taken from the League of Nations
Monthly Bulletin of Statistics.
* No quotations from Mar. 6 through Mar. 11.
3
No quotations from Mar. 6 through Mar. 13.
4
Average quotations on Shanghai for 18 days of new yuan containing 23.4934 grams of pure silver. Average quotations for 7 days of old yuan
containing 23.9025 grams of pure silver was 20.5383 cents.
* Average based on quotations for Dec. 1-27.
* Average based on quotations for Jan. 7-31.
7
Silver currencies—figures given for parity represent gold value of unit in May 1933, computed by multiplying silver content of unit by New
York average price of silver for May 1933, which was $0.34384 per fine ounce.
8
Singapore dollar is legally equivalent to seven sixtieths of 1 English pound. Figure given for parity represents seven sixtieths of average
quotation of pound in New York for May 1933.




JUNE

383

FEDERAL RESERVE BULLETIN

1933

PRICE MOVEMENTS IN PRINCIPAL COUNTRIES
SECURITY PRICES
[Index numbers except as otherwise specified]
Common stocks (1926 average-100)«

Bonds
Month

Number of issues

United
States
(average
price)

England
(December
1921=100)

France
(1913 average=100)

60

87

36

1931—April
May
June
July.
August
September.
October
November.
December..

99.7
99.4
99.4
98.5
95.6
89.4
89.0
81.6

111.3
110.8
111.1
111.2
107.2
103.5
104.2
104.8
102.2

99.0
98.4

1932—January
February ...
March
April
May
June
July.
August
September.
October
NovemberDecember .

81.0
80.3
80.8
79.4
75.2
72.2
74.2
83.2
85.8
84.1
81.9
81.2

104.7
106.5
111.6
110.6
111.4
111.0
115.6
116.1
118.4
120.3
115.9
116.1

91.5
90.3
90.5
89.0
85.9
85.2
87.4
88.6
89.5
89.1
88.9
87.8

1933—January
February „
March
April
_.

84.1
82.5
76.8
75.4

116.9
118.4
118.4
120.2

86.4
85.3
81.9
81.5

Germany
(average
price) »

99.5
97.7
94.8
94.4
90.8

United
States

England

France

Germany

421

278

300

109.2
98.0
95.1
98.2
95.5
81.7
69.7
71.7
57.7

85.1
76.8
77.8
79.2
73.8
67.2
75.6
74.7
68.1

148.5
138.2
141.2
132.6
130.5
115.5
106.9
104.3
94.8

69.7

64.4
60.4
62.2
63.2
67.4
70.1
72.9
76.3

58.0
56.4
56.8
43.9
39.8
34.0
35.9
53.3
58.2
49.9
47.5
47.4

63.5
61.6
59.3
63.5
69.5
72.7
72.4
72.7
72.0

107.3
126.2
117.6
107.3
94.4
97.4
100.4
103.4
104.3
97.4
100.0
104.3

« 45. 6
46.4
45.6
45.8
47.9
54.1
52.5
53.4
56.7

81.4
79.9
83.6
85.8

49.1
44.9
43.2
47.5

72.4
72.2
72.3
72.4

101.3
97.9
92.7
94.0

59.3
59.4
64.5
66.8

84.8
84.2
82.4
<81.4
(3)
<70.4

8

8
'63.0

329
84.8
76.1
69.6
*70.S
'')
« 52.3

* Stock price series for England, France, and Germany have been converted from original bases to a 1926 base.
* New series compiled by the Statistisches Relchsamt; weighted average of the prices of one hundred sixty-nine 6 percent bonds.
* Figures not available because of closing of the exchange.
* Based on data for part of month, no quotations being available for remainder of month.
Back figures.—See BULLETIN for February 1932, p. 121, and sources there cited.

WHOLESALE PRICES—ALL COMMODITIES
Month

Japan
NetherUnited
Germany
Canada
England
Italy
France
(October,
lands
States
(1926=100) (1926=100) (1913=100) (1913=100) (1913=100) (1913=100) 1900=100) (1913=100)

1931—April
May
June
July.
August
September.
October-..
November.
December -

75
73
72
72
72
71
70
70
69

74
73
72
71
71
70
70
71
70

106
104
103
102
100
99
104
106
106

540
520
518
500
488
473
457
447
442

114
113
112
112
110
109
107
107
104

337
332
327
324
322
319
322
320
319

158
154
151
153
152
150
147
147
151

102
102
100
97
94
91
89
89
85

1932—January...
February..
March
April
May
June
July
August
September.
October-..
November.
December.

67
66
66
66
64
64
65
65
65
64
64
63

69
69
69
68
68
67
67
67
67
65
65
64

106
105
105
102
101
98
98
100
102
101
101
101

439
446
444
439
438
425
430
415
413
412
413
413

100
100
100
98
97
96
96
95
95
94
94
92

317
314
315
311
305
297
296
296
300
299
298
296

160
161
159
154
150
146
148
156
167
169
178
185

84
83
82
80

1933—January. ~
February..
March
April

61
60
60
60

64
64
64
65

100
99
98
97

411
404
••390
387

91
91
91
91

292
286
281
279

185
180
177
176

r Revised.




,L. i 78
79
"
76
75
76
77
77
76
75
74
72
71

384

FEDERAL RESERVE BULLETIN

JUNE 1933

PRICE MOVEMENTS IN PRINCIPAL COUNTRIES—Continued
WHOLESALE PRICES—GROUPS OF COMMODITIES
[Groups are those included in indexes shown in preceding table]
England (1913-100) France (1913-100)

United States (1926-100)
Month

Farm
products

Foods

Other
commodities

Foods

Germany (1913-100)

Farm
IndusIndus- Agricultural
and food
trial
trial
products products products products

Provisions

Industrial raw Indusand semi- trial finished
finished
products products

1931—April
May
June
July
August
September.
October
November.
December..

113
113
113
110
108
108
113
115
113

102
100
98
98
95
95
100
102
102

592
566
571
541
528
508
489
482
491

495
480
472
465
452
443
429
416
400

108
109
107
105
103
101
99
99
95

105
103
103
103
102
100
99
99
97

138
137
137
136
136
135
133
132
130

1932—January
February
March
April
May
June
July
August
September .
October
November..
December..

114
114
116
115
114
112
108
107
107
106
107
108

101
101
99
96
94
91
92

496
511
510
506
611
490
498
453
445
450
458
456

390
389
388
381
374
369
370
382
384
379
373
375

92
95
97
95
93
92
93
91

92
91
90

125
122
121
120
119
118
117
116
115
115
114
114

1933—January
February.
March....
April

107
105
102
101

455
443
'417
407

373
370
'368
369

81

RETAIL FOOD PRICES

COST OF LIVING

January
February
March
April
May
June
July
August
September
October
November
December

United
States
(1913-100)

England
(July
1914=100)

France
(July
1914=100)

1932 1933

Month

1932

1933

1932 1933

1932

131
131
129
126
125
123
125
123
123
125
125
125

123
122
119
115

102
103
100
99

116
114
114
113
113
113
114
112
111
110
110
109

109
105
105
104
101
100
101
101
100
100
99
99

114
115
115
115
114
111
108
104
102
102
104
103

113
112
112
111

Germany
(191314-100) i

107
107
106
106

January
February.
March....
April.
May..
June
July
August
September..
October
November..
December. _

England
(July
1914-100)

France
(Jan.-June
1914=100)

Germany
(191314=100) i

1932 1933

Month

1933

United
States
(1913-100)

1932 1933

1932

1933

1932

142
141
139
137

108

106

136

132

147
147
146
144
143
142
143
141
141
143
143
143

109

"165"
"lO5"

125
122
122
122
121
121
122
120
120
119
119
118

1933
117
117
117
117

1 Average of October 1913, January, April, and July 1914=100.
Revised.
SOURCE: Wholesale prices.—For original sources, see BULLETIN for March 1931 (p. 159). Retail food prices and cost of living.—United States—
Bureau of Labor Statistics, Department of Labor; England—MINISTRY OF LABOUR; Qermany—Statistiches Reichsamt; .France—For retail food
prices, Statistique GSnerale, and for cost of living, Commission d'fitudes relatives au cout de la vie a Paris.
r




FEDERAL RESERVE BULLETIN

JUNE 1933

385

LAW DEPARTMENT
Banking Act of 1933

the orders of the Federal Reserve Board, extend to

There is published below the text of the each member bank such discounts, advancements, and
accommodations as may be safely and reasonably
Banking Act of 1933, which was signed by the made with due regard for the claims and demands of
President on June 16, 1933:
other member banks, the maintenance of sound credit

conditions, and the accommodation of commerce,
industry, and agriculture. The Federal Reserve
Board may prescribe regulations further defining within
[H. R. 5661]
the limitations of this Act the conditions under which
discounts, advancements, and the accommodations
AN ACT
may be extended to member banks. Each Federal
To provide for the safer and more effective use of the assets of banks, to reserve bank shall keep itself informed of the general
regulate interbank control, to prevent the undue diversion of funds
character and amount of the loans and investments
into speculative operations, and for other purposes.
of its member banks with a view to ascertaining whether
Be it enacted by the Senate and House of Representa- undue use is being made of bank credit for the speculatives of the United States of America in Congress tive carrying of or trading in securities, real estate, or
assembled, That the short title of this Act shall be the commodities, or for any other purpose inconsistent
with the maintenance of sound credit conditions; and,
"Banking Act of 1933."
SEC. 2. As used in this Act and in any provision of in determining whether to grant or refuse advances,
rediscounts or other credit accommodations, the Federal
law amended by this Act—
(a) The terms "banks", "national bank", "national reserve bank shall give consideration to such informabanking association", "member bank", "board", tion. The chairman of the Federal reserve bank shall
"district", and "reserve bank" shall have the mean- report to the Federal Reserve Board any such undue
ings assigned to them in section 1 of the Federal Re- use of bank credit by any member bank, together with
his recommendation. Whenever, in the judgment of
serve Act, as amended.
(b) Except where otherwise specifically provided, the Federal Reserve Board, any member bank is makthe term "affiliate" shall include any corporation, ing such undue use of bank credit, the Board may, in
business trust, association, or other similar organiza- its discretion, after reasonable notice and an opportunity for a hearing, suspend such bank from the use
tion—
(1) Of which a member bank, directly or indirectly, of the credit facilities of the Federal Reserve System
owns or controls either a majority of the voting shares and may terminate such suspension or may renew it
or more than 50 per centum of the number of shares from time to time."
(b) The paragraph of section 4 of the Federal Revoted for the election of its directors, trustees, or other
persons exercising similar functions at the preceding serve Act, as amended (U.S.C., title 12, sec. 304),
election, or controls in any manner the election of a which commences with the words "The Federal
majority of its directors, trustees, or other persons Reserve Board shall classify" is amended by inserting
before the period at the end thereof a colon and the
exercising similar functions; or
(2) Of which control is hejd, directly or indirectly, following: "Provided, That whenever any two or more
through stock ownership or in any other manner, by member banks within the same Federal reserve
the shareholders of a member bank who own or con- district are affiliated with the same holding company
trol either a majority of the shares of such bank or affiliate, participation by such member banks in any
more than 50 per centum of the number of shares voted such nomination or election shall be confined to one of
for the election of directors of such bank at the pre- such banks, which may be designated for the purpose
ceding election, or by trustees for the benefit of the by such holding company affiliate."
SEC. 4. The first paragraph of section 7 of the
shareholders of any such bankj or
(3) Of which a majority of its directors, trustees, or Federal Reserve Act, as amended (U.S.C., title 12, sec.
other persons exercising similar functions are directors 289), is amended, effective July 1, 1932, to read as
follows:
of any one member bank.
"After all necessary expenses of a Federal reserve
(c) The term "holding company affiliate" shall include any corporation, business trust, association, or bank shall have been paid or provided for, the stockholders shall be entitled to receive an annual dividend
other similar organization—
(1) Which owns or controls, directly or indirectly, of 6 per centum on the paid-in capital stock, which
either a majority of the shares of capital stock of a dividend shall be cumulative. After the aforesaid
member bank or more than 50 per centum of the num- dividend claims have been fully met, the net earnings
ber of shares voted for the election of directors of any shall be paid into the surplus fund of the Federal
one bank at the preceding election, or controls in any reserve bank."
SEC. 5. (a) The first paragraph of section 9 of the
manner the election of a majority of the directors of
Federal Reserve Act, as amended (U.S.C., title 12, sec.
any one bank; or
(2) For the benefit of whose shareholders or mem- 321; Supp. VI, title 12, sec. 321), is amended by inbers all or substantially all the capital stock of a mem- serting immediately after the words "United States"
a comma and the following: "including Morris Plan
ber bank is held by trustees.
SEC. 3. (a) The fourth paragraph after paragraph banks and other incorporated banking institutions
"Eighth" of section 4 of the Federal Reserve Act, as engaged in similar business."
(b) The second paragraph of section 9 of the Federal
amended (U.S.C., title 12, sec. 301), is amended to
Reserve Act, as amended, is amended by adding at the
read as follows:
"Said board of directors shall administer the affairs end thereof the following: "Provided, however, That
of said bank fairly and impartially and without dis- nothing herein contained shall prevent any State
crimination in favor of or against any member bank member bank from establishing and operating branches
or banks and may, subject to the provisions of law and in the United States or any dependency or insular
[PUBLIC—No. 66—73D CONGRESS]




386

FEDERAL RESERVE BULLETIN

possession thereof or in any foreign country, on the same
terms and conditions and subject to the same limitations and restrictions as are applicable to the establishment of branches by national banks."
(c) Section 9 of the Federal Reserve Act, as amended
(U.S.C., title 12, sees. 321-331; Supp. VI, title 12,
sees. 321-332), is further amended by adding at the
end thereof the following new paragraphs:
"Any mutual savings bank having no capital stock
(including any other banking institution the capital
of which consists of weekly or other time deposits which
are segregated from all other deposits and are regarded
as capital stock for the purposes of taxation and the
declaration of dividends), but having surplus and undivided profits not less than the amount of capital
required for the organization of a national bank in
the same place, may apply for and be admitted to
membership in the Federal Reserve System in the
same manner and subject to the same provisions of
law as State banks and trust companies, except that
any such savings bank shall subscribe for capital stock
of the Federal reserve bank in an amount equal to
six-tenths of 1 per centum of its total deposit liabilities
as shown by the most recent report of examination
of such savings bank preceding its admission to membership. Thereafter such subscription shall be adjusted semiannually on the same percentage basis in
accordance with rules and regulations prescribed by
the Federal Reserve Board. If any such mutual
sayings bank applying for membership is not permitted by the laws under which it was organized to
purchase stock in a Federal reserve bank, it shall,
upon admission to the system, deposit with the Federal
reserve bank an amount equal to the amount which
it would have been required to pay in on account of a
subscription to capital stock. Thereafter such deposit
shall be adjusted semiannually in the same manner as
subscriptions for stock. Such deposit shall be subject
to the same conditions with respect to repayment as
amounts paid upon subscriptions to capital stock by
other member banks and the Federal reserve bank
shall pay interest thereon at the same rate as dividends
are actually paid on outstanding shares of stock of
such Federal reserve bank. If the laws under which
any such savings bank was organized be amended so as
to authorize mutual savings banks to subscribe for
Federal reserve bank stock, such savings bank shall
thereupon subscribe for the appropriate amount of
stock in the Federal reserve bank, and the deposit
hereinbefore provided for in lieu of payment upon
capital stock shall be applied upon such subscription.
If the laws under which any such savings bank was
organized be not amended at the next session of the
legislature following the admission of such savings
bank to membership so as to authorize mutual savings
banks to purchase Federal reserve bank stock, or if
such laws be so amended and such bank fail within six
months thereafter to purchase such stock, all of its
rights and privileges as a member bank shall be forfeited and its membership in the Federal Reserve
System shall be terminated in the manner prescribed
elsewhere in this section with respect to State member
banks and trust companies. Each such mutual savings bank shall comply with all the provisions of law
applicable to State member banks and trust companies, with the regulations of the Federal Reserve
Board and with the conditions of membership prescribed for such savings bank at the time of admission
to membership, except as otherwise hereinbefore provided with respect to capital stock.
"Each bank admitted to membership under this
section shall obtain from each of its affiliates other




JUNE

1933

than member banks and furnish to the Federal reserve
bank of its district and to the Federal Reserve Board
not less than three reports during each year. Such
reports shall be in such form as the Federal Reserve
Board may prescribe, shall be verified by the oath or
affirmation of the president or such other officer as
may be designated by the board of directors of such
affiliate to verify such reports, and shall disclose the
information hereinafter provided for as of dates identical with those fixed by the Federal Reserve Board for
reports of the condition of the affiliated member bank.
Each such report of an affiliate shall be transmitted as
herein provided at the same time as the corresponding
report of the affiliated member bank, except that the
Federal Reserve Board may, in its discretion, extend
such time for good cause shown. Each such report
shall contain such information as in the judgment of
the Federal Reserve Board shall be necessary to disclose fully the relations between such affiliate and such
bank and to enable the Board to inform itself as to the
effect of such relations upon the affairs of such bank.
The reports of such affiliates shall be published by the
bank under the same conditions as govern its own
condition reports.
"Any such affiliated member bank may be required
to obtain from any such affiliate such additional reports
as in the opinion of its Federal reserve bank or the
Federal Reserve Board may be necessary in order to
obtain a full and complete knowledge of the condition
of the affiliated member bank. Such additional reports
shall be transmitted to the Federal reserve bank and
the Federal Reserve Board and shall be in such form
as the Federal Reserve Board may prescribe.
"Any such affiliated member bank which fails to
obtain from any of its affiliates and furnish any report
provided for by the two preceding paragraphs of this
section shall be subject to a penalty of $100 for each
day during which such failure continues, which, by
direction of the Federal Reserve Board, may be collected, by suit or otherwise, by the Federal reserve
bank of the district in which such member bank is
located. For the purposes of this paragraph and the
two preceding paragraphs of this section, the term
'affiliate' shall include holding company affiliates as
well as other affiliates.
"State member banks shall be subject to the same
limitations and conditions with respect to the purchasing, selling, underwriting, and holding of investment
securities and stock as are applicable in the case of
national banks under paragraph ' Seventh' of section
5136 of the Revised Statutes, as amended.
"After one year from the date of the enactment of
the Banking Act of 1933, no certificate representing
the stock of any State member bank shall represent the
stock of any other corporation, except a member bank
or a corporation existing on the date this paragraph
takes effect engaged solely in holding the bank premises
of such State member bank, nor shall the ownership,
sale, or transfer of any certificate representing the stock
of any such bank be conditioned in any manner whatsoever upon the ownership, sale, or transfer of a certificate representing the stock of any other corporation,
except a member bank.
"Each State member bank affiliated with a holding
company affiliate shall obtain from such holding company affiliate, within such time as the Federal Reserve
Board shall prescribe, an agreement that such holding
company affiliate shall be subject to the same conditions
and limitations as are applicable under section 5144
of the Revised Statutes, as amended, in the case of
holding company affiliates of national banks. A copy
of each such agreement shall be filed with the Federal

JUNE

1933

FEDERAL RESERVE BULLETIN

Reserve Board. Upon the failure of a State member
bank affiliated with a holding company affiliate to
obtain such an agreement within the time so prescribed,
the Federal Reserve Board shall require such bank to
surrender its stock in the Federal reserve bank and to
forfeit all rights and privileges of membership in the
Federal Reserve System as provided in this section.
Whenever the Federal Reserve Board shall have revoked the voting permit of any such holding company
affiliate, the Federal Reserve Board may, in its discretion, require any or all State member banks affiliated with such holding company affiliate to surrender
their stock in the Federal reserve bank and to forfeit
all rights and privileges of membership in the Federal
Reserve System as provided in this section.
"In connection with examinations of State member
banks, examiners selected or approved by the Federal
Reserve Board shall make such examinations of the
affairs of all affiliates of such banks as shall be necessary to disclose fully the relations between such banks
and their affiliates and the effect of such relations
upon the affairs of such banks. The expense of examination of affiliates of any State member bank may,
in the discretion of the Federal Reserve Board, be
assessed against such bank and, when so assessed,
shall be paid by such bank. In the event of the refusal
to give any information requested in the course of the
examination of any such affiliate, or in the event of
the refusal to permit such examination, or in the event
of the refusal to pay any expense so assessed, the
Federal Reserve Board may, in its discretion, require
any or all State member banks affiliated with such
affiliate to surrender their stock in the Federal reserve
bank and to forfeit all rights and privileges of membership in the Federal Reserve System, as provided in
this section/'
SEC. 6. (a) The second paragraph of section 10 of
the Federal Reserve Act, as amended (U.S.C., title 12,
sec. 242), is amended to read as follows:
"The Secretary of the Treasury and the Comptroller
of the Currency shall be ineligible during the time they
are in office and for two years thereafter to hold any
office, position, or employment in any member bank.
The appointive members of the Federal Reserve Board
shall be ineligible during the time they are in office and
for two years thereafter to hold any office, position, or
employment in any member bank, except that this
restriction shall not apply to a member who has
served the full term for which he was appointed. Upon
the expiration of the term of any appointive member
of the Federal Reserve Board in office when this paragraph as amended takes effect, the President shall fix
the term of the successor to such member at not to
exceed twelve years, as designated by the President
at the time of nomination, but in such manner as to
provide for the expiration of the term of not more
than one appointive member in any two-year period,
and thereafter each appointive member shall hold
office for a term of twelve years from the expiration
of the term of his predecessor. Of the six persons thus
appointed, one shall be designated by the President
as governor and one as vice governor of the Federal
Reserve Board. The governor of the Federal Reserve
Board, subject to its supervision, shall be its active
executive officer. Each member of the Federal
Reserve Board shall within fifteen days after notice
of appointment make and subscribe to the oath of
office."
(b) The fourth paragraph of section 10 of the Federal
Reserve Act, as amended (U.S.C., title 12, sec. 244),
is amended to read as follows:




387

"The principal offices of the Board shall be in the
District of Columbia. At meetings of the Board the
Secretary of the Treasury shall preside as chairman,
and, in his absence, the governor shall preside. In
the absence of both the Secretary of the Treasury and
the governor the vice governor shall preside. In the
absence of the Secretary of the Treasury, the governor,
and the vice governor the Board shall elect a member
to act as chairman pro tempore. The Board shall
determine and prescribe the manner in which its
obligations shall be incurred and its disbursements
and expenses allowed and paid, and may leave on deposit in the Federal reserve banks the proceeds of
assessments levied upon them to defray its estimated
expenses and the salaries of its members and employees,
whose employment, compensation, leave, and expenses
shall be governed solely by the provisions of this Act,
specific amendments thereof, and rules and regulations
of the Board not inconsistent therewith; and funds
derived from such assessments shall not be construed
to be Government funds or appropriated moneys. No
member of the Federal Reserve Board shall be an officer
or director of any bank, banking institution, trust company, or Federal reserve bank or hold stock in any bank,
banking institution, or trust company; and before entering upon his duties as a member of the Federal Reserve
Board he shall certify under oath that he has complied
with this requirement, and such certification shall be
filed with the secretary of the Board. Whenever a
vacancy shall occur, other than by expiration of term,
among the six members of the Federal Reserve Board
appointed by the President as above provided, a successor shall be appointed by the President, by and with
the advice and consent of the Senate, to fill such
vacancy, and when appointed he shall hold office for
the unexpired term of his predecessor."
SEC. 7. Paragraph (m) of section 11 of the Federal
Reserve Act, as amended (U.S.C., title 12, sec. 248),
is amended to read as follows:
"(m) Upon the affirmative vote of not less than six
of its members the Federal Reserve Board shall have
power to fix from time to time for each Federal reserve
district the percentage of individual bank capital and
surplus which may be represented by loans secured by
stock or bond collateral made by member banks within
such district, but no such loan shall be made by any
such bank to any person in an amount in excess of 10
per centum of the unimpaired capital and surplus of
such bank. Any percentage so fixed by the Federal
Reserve Board shall be subject to change from time to
time upon ten days' notice, and it shall be the duty of
the Board to establish such percentages with a view
to preventing the undue use of bank loans for the speculative carrying of securities. The Federal Reserve
Board shall have power to direct any member bank to
refrain from further increase of its loans secured by
stock or bond collateral for any period up to one year
under penalty of suspension of all rediscount privileges
at Federal reserve banks."
SEC. 8. The Federal Reserve Act, as amended, is
amended by inserting between sections 12 and 13
(U.S.C., title 12, sees. 261, 262, and 342), thereof the
following new sections:
"SEC. 12A. (a) There is hereby created a Federal
Open Market Committee (hereinafter referred to as
the l committee'), which shall consist of as many members as there are Federal reserve districts. Each Federal reserve bank by its board of directors shall annually
select one member of said committee. The meetings
of said committee shall be held at Washington, District
of Columbia, at least four times each year, upon the call

388

FEDERAL RESERVE BULLETIN

of the governor of the Federal Reserve Board or at the
request of any three members of the committee, and>
in the discretion of the Board, may be attended by the
members of the Board.
"(b) No Federal reserve bank shall engage in openmarket operations under section 14 of this Act except
in accordance with regulations adopted by the Federal
Reserve Board. The Board shall consider, adopt, and
transmit to the committee and to the several Federal
reserve banks regulations relating to the open-market
transactions of such banks and the relations of the Federal Reserve System with foreign central or other
foreign banks.
" (c) The time, character, and volume of all purchases and sales of paper described in section 14 of this
Act as eligible for open-market operations shall be
governed with a view to accommodating commerce and
business and with regard to their bearing upon the
general credit situation of the country.
" (d) If any Federal reserve bank shall decide not to
participate in open-market operations recommended
and approved as provided in paragraph (b) hereof, it
shall file with the chairman of the committee within
thirty days a notice of its decision, and transmit a copy
thereof to the Federal Reserve Board.
"SEC. 12B. (a) There is hereby created a Federal
Deposit Insurance Corporation (hereinafter referred to
as the ' Corporation '), whose duty it shall be to purchase, hold, and liquidate, as hereinafter provided, the
assets of national banks which have been closed by
action of the Comptroller of the Currency, or by vote
of their directors, and the assets of State member banks
which have been closed by action of the appropriate
State authorities, or by vote of their directors; and to
insure, as hereinafter provided, the deposits of all banks
which are entitled to the benefits of insurance under
this section.
" (b) The management of the Corporation shall be
vested in a board of directors consisting of three members, one of whom shall be the Comptroller of the
Currency, and two of whom shall be citizens of the
United States to be appointed by the President, by and
with the advice and consent of the Senate. One of
the appointive members shall be the chairman of the
board of directors of the Corporation and not more than
two of the members of such board of directors shall be
members of the same political party. Each such
appointive member shall hold office for a term of six
years and shall receive compensation at the rate of
$10,000 per annum, payable monthly out of the funds
of the Corporation, but the Comptroller of the Currency shall not receive additional compensation for his
services as such member.
"(c) There is hereby authorized to be appropriated,
out of any money in the Treasury not otherwise appropriated, the sum of $150,000,000, which shall be available for payment by the Secretary of the Treasury for
capital stock of the Corporation in an equal amount,
which shall be subscribed for by him on behalf of the
United States. Payments upon such subscription shall
be subject to call in whole or in part by the board of
directors of the Corporation. Such stock shall be in
addition to the amount of capital stock required to be
subscribed for by Federal reserve banks and member
and nonmember banks as hereinafter provided, and the
United States shall be entitled to the payment of dividends on such stock to the same extent as member and
nonmember banks are entitled to such payment on the
class A stock of the Corporation held by them. Receipts for payments by the United States for or on
account of such stock shall be issued by the Corpora-




JUNE

1933

tion to the Secretary of the Treasury and shall be
evidence of the stock ownership of the United States.
"(d) The capital stock of the Corporation shall be
divided into shares of $100 each. Certificates of stock
of the Corporation shall be of two classes—class A and
class B. Class A stock shall be held by member and
nonmember banks as hereinafter provided and they
shall be entitled to payment of dividends out of net
earnings at the rate of 6 per centum per annum on the
capital stock paid in by them, which dividends shall be
cumulative, or to the extent of 30 per centum of such
net earnings in any one year, whichever amount shall
be the greater, but such stock shall have no vote at
meetings of stockholders. Class B stock shall be held
by Federal reserve banks only and shall not be entitled
to the payment of dividends. Every Federal reserve
bank shall subscribe to shares of class B stock in the
Corporation to an amount equal to one half of the surplus of such bank on January 1, 1933, and its subscriptions shall be accompanied by a certified check payable
to the Corporation in an amount equal to one half of
such subscription. The remainder of such subscription shall be subject to call from time to time by the
board of directors upon ninety days' notice.
" (e) Every bank which is or which becomes a member of the Federal Reserve System on or before July 1,
1934, shall take all steps necessary to enable it to become a class A stockholder of the Corporation on or
before July 1, 1934; and thereafter no State bank or
trust company or mutual savings bank shall be admitted to membership in the Federal Reserve System
until it becomes a class A stockholder of the Corporation, no national bank in the continental United States
shall be granted a certificate by the Comptroller of the
Currency authorizing it to commence the business of
banking until it becomes a member of the Federal
Reserve System and a class A stockholder of the Corporation, and no national bank in the continental
United States for which a receiver or conservator has
been appointed shall be permitted to resume the transaction of its banking business until it becomes a class A
stockholder of the Corporation. Every member bank
shall apply to the Corporation for class A stock of the
Corporation in an amount equal to one half of 1 per
centum of its total deposit liabilities as computed in
accordance with regulations prescribed by the Federal
Reserve Board; except that in the case of a member
bank organized after the date this section takes effect,
the amount of such class A stock applied for by such
member bank during the first twelve months after its
organization shall equal 5 per centum of its paid-up
capital and surplus, and beginning after the expiration
of such twelve months' period the amount of such class
A stock of such member bank shall be adjusted annually in the same manner as in the case of other
member banks. Upon receipt of such application the
Corporation shall request the Federal Reserve Board,
in the case of a State member bank, or the Comptroller
of the Currency, in the case of a national bank, to
certify upon the basis of a thorough examination of
such bank whether or not the assets of the applying
bank are adequate to enable it to meet all of its liabilities to depositors and other creditors as shown by the
books of the bank; and the Federal Reserve Board or
the Comptroller of the Currency shall make such
certification as soon as practicable. If such certification be in the affirmative, the Corporation shall grant
such application and the applying bank shall pay one
half of its subscription in full and shall thereupon
become a class A stockholder of the Corporation:
Provided, That no member bank shall be required to

JUNE

1933

FEDERAL RESERVE BULLETIN

make such payment or become a class A stockholder
of the Corporation before July 1, 1934. The remainder
of such subscription shall be subject to call from time
to time by the board of directors of the Corporation.
If such certification be in the negative, the Corporation
shall deny such application. If any national bank
shall not have become a class A stockholder of the
Corporation on or before July 1, 1934, the Comptroller
of the Currency shall appoint a receiver or conservator
therefor in accordance with the provisions of existing
law. Except as provided in subsection (g) of this
section, if any State member bank shall not have
become a class A stockholder of the Corporation on or
before July 1, 1934, the Federal Reserve Board shall
terminate its membership in the Federal Reserve
System in accordance with the provisions of section 9
of this Act.
"(f) Any State bank or trust company or mutual
savings bank which applies for membership in the
Federal Reserve System or for conversion into a national banking association on or after July 1, 1936,
may, with the consent of the Corporation, obtain the
benefits of this section, pending action on such application, by subscribing and paying for the same amount
of stock of the Coporation as it would be required to
subscribe and pay for upon becoming a member bank.
Thereupon the provisions of this section applicable to
member banks shall be applicable to such State bank
or trust company or mutual savings bank to the same
extent as if it were already a member bank: Provided,
That if the application of such State bank or trust company or mutual savings bank for membership in the
Federal Reserve System or for conversion into a national banking association be approved and it shall not
complete its membership in the Federal Reserve System or its conversion into a national banking association within a reasonable time, or if such application
shall be disapproved, then the amount paid by such
State bank or trust company or mutual savings bank
on account of its subscription to the capital stock of
the Corporation shall be repaid to it and it shall no
longer be subject to the provisions or entitled to the
privileges of this section.
"(g) If any State bank or trust company or mutual
savings bank (referred to in this subsection as * State
bank') which is or which becomes a member of the
Federal Reserve System is not permitted by the laws
under which it was organized to purchase stock in the
Corporation, it shall apply to the Corporation for
admission to the benefits of this section and, if such
application be granted after appropriate certification
in accordance with this section, it shall deposit with the
Corporation an amount equal to the amount which it
would have been required to pay in on account of a
subscription to capital stock of the Corporation.
Thereafter such deposit shall be adjusted in the same
manner as subscriptions for stock by class A stockholders. Such deposit shall be subject to the same conditions with respect to repayment as amounts paid on
subscriptions to class A stock by other member banks
and the Corporation shall pay interest thereon at the
same rate as dividends are actually paid on outstanding
shares of class A stock. As long as such deposit is
maintained with the Corporation, such State bank shall,
for the purposes of this section, be deemed to be a
class A stockholder of the Corporation. If the laws
under which such State bank was organized be amended
so as to authorize State banks to subscribe for class A
stock of the Corporation, such State bank shall within
six months thereafter subscribe for an appropriate
amount of such class A stock and the deposit herein-




389

after provided for in lieu of payment upon class A stock
shall be applied upon such subscription. If the law
under which such State bank was organized be not
amended at the next session of the State legislature
following the admission of such State bank to the benefits of this section so as to authorize State banks to
purchase such class A stock, or, if the law be so amended
and such State bank shall fail within six months thereafter to purchase such class A stock, the deposit previously made with the Corporation shall be returned to
such State bank and it shall no longer be entitled to the
benefits of this section, unless it shall have been closed
in the meantime on account of inability to meet the
demands of its depositors.
"(h) The amount of the outstanding class A stock
of the Corporation held by member banks shall be annually adjusted as hereinafter provided as of the last
preceding call date as member banks increase their
time and demand deposits or as additional banks become members or subscribe to the stock of the Corporation, and such stock may be decreased in amount as
member banks reduce their time and demand deposits
or cease to be members. Shares of the capital stock
of the Corporation owned by member banks shall not
be transferred or hypothecated. When a member
bank increases its time and demand deposits it shall,
at the beginning of each calendar year, subscribe for
an additional amount of capital stock of the Corporation equal to one half of 1 per centum of such increase
in deposits. One half of the amount of such additional
stock shall be paid for at the time of the subscription
therefor, and the balance shall be subject to call by the
board of directors of the Corporation. A bank organized on or before the date this section takes effect
and admitted to membership in the Federal Reserve
System at any time after the organization of the Corporation shall be required to subscribe for an amount
of class A capital stock equal to one half of 1 per centum
of the time and demand deposits of the applicant
bank as of the date of such admission, paying therefor
its par value plus one half of 1 per centum a month
from the period of the last dividend on the class A
stock of the Corporation. When a member bank
reduces its time and demand deposits it shall surrender,
not later than the 1st day of January thereafter, a
proportionate amount of its holdings in the capital
stock of the Corporation, and when a member bank
voluntarily liquidates it shall surrender all its holdings
of the capital stock of the Corporation and be released
from its stock subscription not previously called. The
shares so surrendered shall be canceled and the member bank shall receive in payment therefor, under
regulations to be prescribed by the Corporation, a sum
equal to its cash-paid subscriptions on the shares surrendered and its proportionate share of dividends not
to exceed one half of 1 per centum a month, from the
period of the last dividend on such stock, less any
liability of such member bank to the Corporation.
"(i) If any member or nonmember bank shall be
declared insolvent, or shall cease to be a member bank
(or in the case of a nonmember bank, shall cease to
be entitled to the benefits of insurance under this section), the stock held by it in the Corporation shall be
canceled, without impairment of the liability of such
bank, and all cash-paid subscriptions on such stock,
with its proportionate share of dividends not to exceed
one half of 1 per centum per month from the period of
last dividend on such stock shall be first applied to all
debts of the insolvent bank or the receiver thereof to
the Corporation, and the balance, if any, shall be paid
to the receiver of the insolvent bank.

390

FEDERAL RESERVE BULLETIN

" (j) Upon the date of enactment of the Banking Act
of 1933, the Corporation shall become a body corporate
and as such shall have power—
" First. To adopt and use a corporate seal.
" Second. To have succession until dissolved by an
Act of Congress.
" Third. To make contracts.
"Fourth. To sue and be sued, complain and defend,
in any court of law or equity, State or Federal.
" Fifth. To appoint by its board of directors such
officers and employees as are not otherwise provided
for in this section, to define their duties, fix their compensation, require bonds of them and fix the penalty
thereof, and to dismiss at pleasure such officers or employees. Nothing in this or any other Act shall be
construed to prevent the appointment and compensation as an officer or employee of the Corporation of any
officer or employee of the United States in any board,
commission, independent establishment, or executive
department thereof.
" Sixth. To prescribe by its board of directors, bylaws not inconsistent with law, regulating the manner
in which its general business may be conducted, and the
privileges granted to it by law may be exercised and
enjoyed.
"Seventh. To exercise by its board of directors, or
duly authorized officers or agents, all powers specifically
granted by the provisions of this section and such incidental powers as shall be necessary to carry out the
powers so granted.
"(k) The board of directors shall administer the
affairs of the Corporation fairly and impartially and
without discrimination. The board of directors of the
Corporation shall determine and prescribe the manner
in which its obligations shall be incurred and its expenses allowed and paid. The Corporation shall be
entitled to the free use of the United States mails in the
same manner as the executive departments of the Government. The Corporation with the consent of any
Federal reserve bank or of any board, commission, independent establishment, or executive department of the
Government, including any field service thereof, may
avail itself of the use of information, services, and facilities thereof in carrying out the provisions of this section.
" (1) Effective on and after July 1, 1934 (thus affording ample time for examination and preparation),
unless the President shall by proclamation fix an earlier
date, the Corporation shall insure as hereinafter provided the deposits of all member banks, and on and
after such date and until July 1, 1936, of all nonmember
banks, which are class A stockholders of the Corporation. Notwithstanding any other provision of law,
whenever any national bank which is a class A stockholder of the Corporation shall have been closed by
action of its board of directors or by the Comptroller
of the Currency, as the case may be, on account of
inability to meet the demands of its depositors, the
Comptroller of the Currency shall appoint the Corporation receiver for such bank. As soon as possible thereafter the Corporation shall organize a new national
bank to assume the insured deposit liabilities of such
closed bank, to receive new deposits and otherwise to
perform temporarily the functions provided for it in
this paragraph. For the purposes of this subsection,
the term 'insured deposit liability* shall mean with
respect to the owner of any claim arising out of a
deposit liability of such closed bank the following percentages of the net amount due to such owner by such
closed bank on account of deposit liabilities: 100 per
centum of such net amount not exceeding $10,000; and
75 per centum of the amount, if any, by which such
net aniount exceeds $10,000 but does not exceed




JUNE

1933

$50,000; and 50 per centum of the amount, if any, by
which such net amount exceeds $50,000: Provided,
That, in determining the amount due to such owner for
the purpose of fixing such percentage, there shall be
added together all net amounts due to such owner in the
same capacity or the same right, on account of deposits,
regardless of whether such deposits be maintained in his
name or in the names of others for his benefit. For the
purposes of this subsection, the term 'insured deposit
liabilities' shall mean the aggregate amount of all such
insured deposit liabilities of such closed bank. The
Corporation shall determine as expeditiously as possible
the net amounts due to depositors of the closed bank and
shall make available to the new bank an amount equal
to the insured deposit liabilities of such closed bank,
whereupon such new bank shall assume the insured
deposit liability of such closed bank to each of its
depositors, and the Corporation shall be subrogated to
all rights against the closed bank of the owners of such
deposits and shall be entitled to receive the same dividends from the proceeds of the assets of such closed
bank as would have been payable to each such depositor
until such dividends shall equal the insured deposit
liability to such depositor assumed by the new bank,
whereupon all further dividends shall be payable to such
depositor. Of the amount thus made available by the
Corporation to the new bank, such portion shall be paid
to it in cash as may be necessary to enable it to meet
immediate cash demands and the remainder shall be
credited "to it on the books of the Corporation subject
to withdrawal on demand and shall bear interest at the
rate of 3 per centum per annum until withdrawn. The
new bank may, with the approval of the Corporation,
accept new deposits, which, together with all amounts
made available to the new bank by the Corporation,
shall be kept on hand in cash, invested in direct obligations of the United States, or deposited with the Corporation or with a Federal reserve bank. Such new
bank shall maintain on deposit with the Federal reserve
bank of its district the reserves required by law of member banks but shall not be required to subscribe for
stock of the Federal reserve bank until its own capital
stock has been subscribed and paid for in the manner
hereinafter provided. The articles of association and
organization certificate of such new bank may be executed by such representatives of the Corporation as it
may designate; the new bank shall not be required to
have any directors at the time of its organization, but
shall be managed by an executive officer to be designated by the Corporation; and no capital stock need be
paid in by the Corporation; but in other respects such
bank shall be organized in accordance with the existing
provisions of law relating to the organization of national
banks; and, until the requisite amount of capital stock
for such bank has been subscribed and paid for in the
manner hereinafter provided, such bank shall transact
no business except that authorized by this subsection
and such business as may be incidental to its organization. When in the judgment of the Corporation it is
desirable to do so, the Corporation shall offer capital
stock of the new bank for sale on such terms and conditions as the Corporation shall deem advisable, in an
amount sufficient in the opinion of the Corporation to
make possible the conduct of the business of the new
bank on a sound basis, but in no event less than that
required by section 5138 of the Revised Statutes, as
amended (U.S.C., title 12, sec. 51), for the organization
of a national bank in the place where such new bank is
located, giving the stockholders of the closed bank the
first opportunity to purchase such stock. Upon proof
that an adequate amount of capital stock of the new
bank has been subscribed and paid for in cash by sub-

JUNE

FEDERAL RESERVE BULLETIN

1933

scribers satisfactory to the Comptroller of the Currency,
he shall issue to such bank a certificate of authority
to commence business and thereafter it shall be managed by directors elected by its own shareholders and
may exercise all of the powers granted by law to
national banking associations. If an adequate amount
of capital for such new bank is not subscribed and paid
in, the Corporation may offer to transfer its business to
any other banking institution in the same place which
will take over its assets, assume its liabilities, and pay
to the Corporation for such business such amount as
the Corporation may deem adequate. Unless the
capital stock of the new bank is sold or its assets
acquired and its liabilities assumed by another banking
institution, in the manner herein prescribed, within
two years from the date of its organization, the Corporation shall place the new bank in voluntary liquidation and wind up its affairs. The Corporation shall
open on its books a deposit insurance account and, as
soon as possible after taking possession of any closed
national bank, the Corporation shall make an estimate
of the amount which will be available from all sources
for application in satisfaction of the portion of the
claims of depositors to which it has been subrogated
and shall debit to such deposit insurance account the
excess, if any, of the amount made available by the
Corporation to the new bank for depositors over and
above the amount of such estimate. It shall be the
duty of the Corporation to realize upon the assets of
such closed bank, haying due regard to the condition
of credit in the district in which such closed bank is
located; to enforce the individual liability of the stockholders and directors thereof; and to wind up the affairs
of such closed bank in conformity with the provisions
of law relating to the liquidation of closed national
banks, except as herein otherwise provided, retaining
for its own account such portion of the amount realized
from such liquidation as it shall be entitled to receive
on account of its subrogation to the claims of depositors
and paying to depositors and other creditors the amount
available for distribution to them, after deducting
therefrom their share of the costs of the liquidation of
the closed bank. If the total amount realized by the
Corporation on account of its subrogation to the claims
of depositors be less than the amount of the estimate
hereinabove provided for, the deposit insurance account
shall be charged with the deficiency and, if the total
amount so realized shall exceed the amount of such
estimate, such account shall be credited with such
excess. With respect to such closed national banks,
the Corporation shall have all the rights, powers, and
privileges now possessed by or hereafter given receivers
of insolvent national banks and shall be subject to the
obligations and penalties not inconsistent with the
provisions of this paragraph to which such receivers
are now or may hereafter become subject.
" Whenever any State member bank which is a class
A stockholder of the Corporation shall have been closed
by action of its board of directors or by the appropriate
State authority, as the case may be, on account of
inability to meet the demands of its depositors, the
Corporation shall accept .appointment as receiver
thereof, if such appointment be tendered by the appropriate State authority and be authorized or permitted by State law. Thereupon the Corporation shall
organize a new national bank, in accordance with the
provisions of this subsection, to assume the insured
deposit liabilities of such closed State member bank, to
receive new deposits and otherwise to perform temporarily the functions provided for in this subsection.
Upon satisfactory recognition of the right of the Corporation to receive dividends on the same basis as in the
177784—33




5

391

case of a closed national bank under this subsection,
such recognition being accorded by State law, by allowance of claims by the appropriate State authority, by
assignment of claims by depositors, or by any other
effective method, the Corporation shall make available
to such new national bank, in the manner prescribed
by this subsection, an amount equal to the insured
deposit liabilities of such closed State member bank;
and the Corporation and such new national bank shall
perform all of the functions and duties and shall have
all the rights and privileges with respect to such State
member bank and the depositors thereof which are
prescribed by this subsection with respect to closed
national banks holding class A stock in the Corporation:
Provided, That the rights of depositors and other
creditors of such State member bank shall be determined in accordance with the applicable provisions of
State law: And provided further, That, with respect to
such State member bank, the Corporation shall possess
the powers and privileges provided by State law with
respect to a receiver of such State member bank, except
in so far as the same are in conflict with the provisions of
this subsection.
" Whenever any State member bank which is a class
A stockholder of the Corporation shall have been closed
by action of its board of directors or by the appropriate
State authority, as the case may be, on account of
inability to meet the demands of its depositors, and the
applicable State law does not permit the appointment
of the Corporation as receiver of such bank, the Corporation shall organize a new national bank, in accordance with the provisions of this subsection, to
assume the insured deposit liabilities of such closed
State member bank, to receive new deposits, and otherwise to perform temporarily the functions provided for
in this subsection. Upon satisfactory recognition of
the right of the Corporation to receive dividends on
the same basis as in the case of a closed national bank
under this subsection, such recognition being accorded
by State law, by allowance of claims by the appropriate
State authority, by assignment of claims by depositors,
or by any other effective method, the Corporation shall
make available to such new bank, in accordance with
the provisions of this subsection, the amount of insured
deposit liabilities as to which such recognition has been
accorded; and such new bank shall assume such insured
deposit liabilities and shall in other respects comply
with the provisions of this subsection respecting new
banks organized to assume insured deposit liabilities of
closed national banks. In so far as possible in view of
the applicable provisions of State law, the Corporation shall proceed with respect to the receiver of such
closed bank and with respect to the new bank organized
to assume its insured deposit liabilities in the manner
prescribed by this subsection with respect to closed
national banks and new banks organized to assume their
insured deposit liabilities; except that the Corporation
shall have none of the powers, duties, or responsibilities
of a receiver with respect to the winding up of the affairs
of such closed State member bank. The Corporation,
in its discretion, however, may purchase and liquidate
any or all of the assets of such bank.
"Whenever the net debit balance of the deposit
insurance account of the Corporation shall equal or
sxceed one fourth of 1 per centum of the total deposit
liabilities of all class A stockholders as of the date of
the last preceding call report, the Corporation shall
levy upon such stockholders an assessment equal to
one fourth of 1 per centum of their total deposit liabilities
and shall credit the amount collected from such assessment to such deposit insurance account. No bank
which is a holder of class A stock shall pay any divi-

392

FEDERAL RESERVE BULLETIN

JUNE

1933

dends until all assessments levied upon it by the Cor- section 5235 of the Revised Statutes (U.S.C., title 12,
poration shall have been paid in full; and any director sec. 193), and no liability shall attach to the Comptroller
or officer of any such bank who participates in the of the Currency or to the receiver of any national bank
declaration or payment of any such dividend may, by reason of any such payment for failure to pay diviupon conviction, be fined not more than $1,000, or dends to a claimant whose claim is not proved at the
ime of any such payment.
imprisoned for not more than one year, or both.
"(o) The Corporation is authorized and empowered
"The term 'receiver' as used in this section shall
mean a receiver, liquidating agent, or conservator of a to issue and to have outstanding at any one time in
national bank, and a receiver, liquidating agent, con- an amount aggregating not more than three times the
servator, commission, person, or other agency charged amount of its capital, its notes, debentures, bonds, or
by State law with the responsibility and the duty of other such obligations, to be redeemable at the option
winding up the affairs of an insolvent State member of the Corporation before maturity in such manner as
may be stipulated in such obligations, and to bear such
bank.
"For the purposes of this section only, the term rate or rates of interest, and to mature at such time or
1
national bank' shall include all national banking times as may be determined by the Corporation:
associations and all banks, banking associations, trust Provided, That the Corporation may sell on a discount
companies, sayings banks, and other banking insitu- basis short-term obligations payable at maturity withtions located in the District of Columbia which are out interest. The notes, debentures, bonds, and other
members of the Federal Reserve System; and the term such obligations of the Corporation may be secured
'State member bank' shall include all State banks, by assets of the Corporation in such manner as shall
banking associations, trust companies, savings banks, be prescribed by its board of directors. Such obligaand other banking institutions organized under the laws tions may be offered for sale at such price or prices as
of any State, which are members of the Federal Reserve the Corporation may determine.
"(p) All notes, debentures, bonds, or other such
System.
"In any determination of the insured deposit liabili- obligations issued by the Corporation shall be exempt,
ties of any closed bank or of the total deposit liabilities both as to principal and interest, from all taxation
of any bank which is a holder of class A stock of the (except estate and inheritance taxes) now or hereafter
Corporation, or a member of the Fund provided for in imposed by the United States, by any Territory,
subsection (y), for the purposes of this section, there dependency, or possession thereof, or by any State,
shall be excluded the amounts of all deposits of such county, municipality, or local taxing authority. The
bank which are payable only at an office thereof located Corporation, including its franchise, its capital,
reserves, and surplus, and its income, shall be exempt
in a foreign country.
now or hereafter imposed by the
"The Corporation may make such rules, regulations, from all taxation any Territory, dependency, or posStates,
and contracts as it may deem necessary in order to United thereof, by by any State, county, municipality,
session
or
carry out the provisions of this section.
local taxing authority, except that any real property
"Money of the Corporation not otherwise employed or the Corporation shall be subject to State, Territorial,
shall be invested in securities of the Government of the of
United States, except that for temporary periods, in county, municipal or local taxation to the same extent
the discretion of the board of directors, funds of the according to its value as other real property is taxed.
" (q) In order that the Corporation may be supplied
Corporation may be deposited in any Federal reserve
bank or with the Treasurer of the United States. with such forms of notes, debentures, bonds, or other
such obligations as it may need for issuance undef this
When designated for that purpose by the Secretary of
the Treasury, the Corporation shall be a depositary of Act, the Secretary of the Treasury is authorized to
public moneys, except receipts from customs, under prepare such forms as shall be suitable and approved
such regulations as may be prescribed by the said by the Corporation, to be held in the Treasury subject
Secretary, and may also be employed as afinancialagent to delivery, upon order of the Corporation. The
of the Government. It shall perform all such reasonable engraved plates, dies, bed pieces, and other material
in connection therewith shall remain in the
duties as depositary of public moneys and financial executed of the Secretary of the Treasury. The Corcustody
agent of the Government as may be required of it.
"(m) Nothing herein contained shall be construed poration shall reimburse the Secretary of the Treasury
to prevent the Corporation from making loans to for any expenses incurred in the preparation, custody,
national banks closed by action of the Comptroller of and delivery of such notes, debentures, bonds, or other
the Currency, or by vote of their directors, or to State such obligations.
The Corporation shall annually
member banks closed by action of the appropriate of "(r)operations to the Congress as soon make a report
its
State authorities, or by vote of their directors, or from after the 1st day of January in each year.as practicable
entering into negotiations to secure the reopening of
"(s) Whoever, for the purpose of obtaining any
such banks.
" (n) Receivers or liquidators of member banks which loan from the Corporation, or any extension or renewal
substitution of
are now or may hereafter become insolvent or suspended thereof, or the acceptance, release, or of inducing the
the purpose
shall be entitled to offer the assets of such banks for security therefor, or for any assets, or for the purpose
Corporation to purchase
sale to the Corporation or as security for loans from of influencing in any way the action of the Corporathe Corporation, upon receiving permission from the tion under this section, makes any statement, knowing
appropriate State authority in accordance with express it to be false, or willfully overvalues any security, shall
provisions of State law in the case of State member be punished by a fine of not more than $5,000, or by
banks, or from the Comptroller of the Currency in the imprisonment for not more than two years, or both.
case of national banks. The proceeds of every such
"(t) Whoever (1) falsely makes, forges, or
sale or loan shall be utilized for the same purposes and feits any obligation or coupon, in imitation ofcounterin the same manner as other funds realized from the porting to be an obligation or coupon issued or purby
liquidation of the assets of such banks. The Comp- Corporation, or (2) passes, utters, or publishes, the
troller of the Currency may, in his discretion, pay attempts to pass, utter, or publish, any false, forged, or
or
dividends on proved claims at any time after the expiration of the period of advertisement made pursuant to counterfeited obligation or coupon, purporting to have




JUNE

1933

FEDERAL RESERVE BULLETIN

been issued by the Corporation, knowing the same to be
false, forged, or counterfeited, or (3) falsely alters any
obligation or coupon issued or purporting to have been
issued by the Corporation, or (4) passes, utters, or publishes, or attempts to pass, utter, or publish, as true, any
falsely altered or spurious obligation or coupon, issued
or purporting to have been issued by the Corporation,
knowing the same to be falsely altered or spurious, shall
be punished by a fine of not more than $10,000, or by
imprisonment for not more than five years, or both.
"(u) Whoever, being connected in any capacity
with the Corporation, (1) embezzles, abstracts, purloins, or willfully misapplies any moneys, funds, securities, or other things of value, whether belonging to it
or pledged, or otherwise intrusted to it, or (2) with
intent to defraud the Corporation or any other body,
politic or corporate, or any individual, or to deceive any
.officer, auditor, or examiner of the Corporation, makes
any false entry in any book, report, or statement of or
to the Corporation, or without being duly authorized
draws any order or issues, puts forth, or assigns any
note, debenture, bond, or other such obligation, or
draft, bill of exchange, mortgage, judgment, or decree
thereof, shall be punished by a fine of not more than
$10,000, or by imprisonment for not more than five
years, or both.
" (v) No individual, association, partnership, or corporation shall use the words 'Federal Deposit Insurance
Corporation', or a combination or any three of these
four words, as the name or a part thereof under which
he or it shall do business. No individual, association,
partnership, or corporation shall advertise or otherwise
represent falsely by any device whatsoever that his or
its deposit liabilites are insured or in anywise guaranteed by the Federal Deposit Insurance Corporation, or
by the Government of the United States, or by any
instrumentality thereof; and no class A stockholder of
the Federal Deposit Insurance Corporation shall advertise or otherwise represent falsely by any device whatsoever the extent to which or the manner in which its
deposit liabilities are insured by the Federal Deposit
Insurance Corporation. Every individual, partnership, association, or corporation violating this subsection shall be punished by a fine of not exceeding
$1,000, or by imprisonment not exceeding one year, or
both.
" (w) The provisions of sections 112,113,114,115,116,
and 117 of the Criminal Code of the United States
(U.S.C., title 18, ch. 5, sees. 202 to 207, inclusive), in
so far as applicable, are extended to apply to contracts
or agreements with the Corporation under this section,
which for the purposes hereof shall be held t6 include
loans, advances, extensions, and renewals thereof, and
acceptances, releases, and substitutions of security
therefor, purchases or sales of assets, and all contracts
and agreements pertaining to the same.
"(x) The Secret Service Division of the Treasury
Department is authorized to detect, arrest, and deliver
into the custody of the United States marshal having
jurisdiction any person committing any of the offenses
punishable under this section.
"(y) The Corporation shall open on its books a
Temporary Federal Deposit Insurance Fund (hereinafter
referred to as the 'Fund')/ which shall become operative
on January 1, 1934, unless the President shall by proclamation fix an earlier date, and it shall be the duty of
the Corporation to insure deposits as hereinafter provided until July 1, 1934.
"Each member bank licensed before January 1, 1934,
by the Secretary of the Treasury pursuant to the
authority vested in him by the Executive order of the
President issued March 10, 1933, shall, on or before




393

January 1, 1934, become a member of the Fund; each
member bank so licensed after such date, and each State
bank trust company or mutual savings bank (referred
to in this subsection as 'State bank', which term shall
also include all banking institutions located in the District of Columbia) which becomes a member of the
Federal Reserve System on or after such date, shall, upon
being so licensed or so admitted to membership, become
a member of the Fund; and any State bank which is not
a member of the Federal Reserve System, with the
approval of the authority having supervision of such
State bank and certification to the Corporation by such
authority that such State bank is in solvent condition,
shall, after examination by, and with the approval of, the
Corporation, be entitled to become a member of the Fund
and to the privileges of this subsection upon agreeing to
comply with the requirements thereof and upon paying
to the Corporation an amount equal to the amount that
would be required of it under this subsection if it were
a member bank. The Corporation is authorized to prescribe rules and regulations for the further examination
of such State bank, and tofixthe compensation of examiners employed to make examinations of State banks.
"Each member of the Fund shall file with the
Corporation on or before the date of its admission a certified statement under oath showing, as of the fifteenth
day of the month preceding the month in which it was
so admitted, the number of its depositors and the total
amount of its deposits which are eligible for insurance
under this subsection, and shall pay to the Corporation
an amount equal to one-half of 1 per centum of the total
amount of the deposits so certified. One-half of such
payment shall be paid in full at the time of the admission
of such member to the Fund, and the remainder of such
payment shall be subject to call from time to time by
the board of directors of the Corporation. Within a
reasonable time fixed by the Corporation each such
member shall file a similar statement showing, as of
June 15, 1934, the number of its depositors and the
total amount of its deposits which are eligible for such
insurance and shall pay to the Corporation in the
same manner an amount equal to one-half of 1 per
centum of the increase, if any, in the total amount of
such deposits since the date covered by the statement
filed upon its admission to membership in the Fund.
"If at any time prior to July 1, 1934, the Corporation
requires additional funds with which to meet its obligations under this subsection, each member of the Fund
shall be subject to one additional assessment only in
an amount not exceeding the total amount theretofore
paid to the Corporation by such member.
"If any member of the Fund shall be closed on or
before June 30, 1934, on account of inability to meet
its deposit liabilities, the Corporation shall proceed in
accordance with the provisions of subsection (1) of
this section to pay the insured deposit liabilities of
such member; except that the Corporation shall pay
not more than $2,500 on account of the net approved
claim of the owner of any deposit. The provisions of
such subsection (1) relating to State member banks
shall be extended for the purposes of this subsection
to members of the Fund which are not members of the
Federal Reserve System; and the provisions of this
subsection shall apply only to deposits of members of
the Fund which have been made available since March
10, 1933, for withdrawal in the usual course of the
banking business.
"Before July 1, 1934, the Corporation shall make an
estimate of the balance, if any, which will remain in
the Fund after providing for all liabilities of the Fund,
including expenses of operation thereof under this
subsection and allowing for anticipated recoveries.

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1933

The Corporation shall refund such estimated balance, actions of any kind entered into by any Federal reserve
on such basis as the Corporation shall find to be equi- bank with any foreign bank or banker, or with any
table, to the members of the Fund other than those group of foreign banks or bankers, and all such relationships and transactions shall be subject to such regulawhich have been closed prior to July 1,1934.
"Each State bank which is a member of the Fund, tions, conditions, and limitations as the Board may
in order to obtain the benefits of this section after prescribe. No officer or other representative of any
July 1, 1934, shall, on or before such date, subscribe Federal reserve bank shall conduct negotiations of any
and pay for the same amount of class A stock of the kind with the officers or representatives of any foreign
Corporation as it would be required to subscribe and bank or banker without first obtaining the permission
pay for upon becoming a member bank, or if such of the Federal Reserve Board. The Federal Reserve
State bank is not permitted by the laws under which it Board shall have the right, in its discretion, to be
was organized to purchase such stock, it shall deposit represented in any conference or negotiations by such
with the Corporation an amount equal to the amount representative or representatives as the Board may
it would have been required to pay in on account of a designate. A full report of all conferences or negotiasubscription to such stock; and thereafter such State tions, and all understandings or agreements arrived at
bank shall be entitled to such benefits until July 1, 1936. or transactions agreed upon, and all other material facts
" It is not the purpose of this section to discriminate, appertaining to such conferences or negotiations, shall
in any manner, against State nonmember, and in favor befiledwith the Federal Reserve Board in writing by a
of, national or member banks; but the purpose is to duly authorized officer of each Federal reserve bank*
provide all banks with the same opportunity to obtain which shall have participated in such conferences or
and enjoy the benefits of this section. No bank shall be negotiations."
discriminated against because its capital stock is less
SEC. 11. (a) Section 19 of the Federal Reserve Act,
than the amount required for eligibility for admission as amended (U.S.C., title 12, sees. 142, 374, 461-466;
Supp. VI, title 12, sec. 462a), is amended by inserting
into the Federal Reserve System."
SEC. 9. The eighth paragraph of section 13 of the after the sixth paragraph thereof the following new
Federal Reserve Act, as amended (U.S.C., title 12, paragraph:
"No member bank shall act as the medium or agent
sec. 347; Supp. VI, title 12, sec. 347), is amended to
of any nonbanking corporation, partnership, associaread as follows:
"Any Federal reserve bank may make advances for tion, business trust, or individual in making loans on
periods not exceeding fifteen days to its member banks the security of stocks, bonds, and other investment
on their promisory notes secured by the deposit or securities to brokers or dealers in stocks, bonds, and
pledge of bonds, notes, certificates of indebtedness, or other investment securities. Every violation of this
Treasury bills of the United States, or by the deposit provision by any member bank shall be punishable by
or pledge of debentures or other such obligations of a fine of not more than $100 per day during the conFederal intermediate credit banks which are eligible for tinuance of such violation; and such fine may be
purchase by Federal reserve banks under section 13 (a) collected, by suit or otherwise, by the Federal reserve
of this Act; and any Federal reserve bank may make bank of the district in which such member bank is
advances for periods not exceeding ninety days to its located."
(b) Such section 19 of the Federal Reserve Act, as
member banks on their promissory notes secured by
such notes, drafts, bills of exchange, or bankers' accept- amended, is further amended by adding at the end
ances as are eligible for rediscount or for purchase by thereof the following new paragraphs:
"No member bank shall, directly or indirectly by
Federal reserve banks under the provisions of this Act.
All such advances shall be made at rates to be estab- any device whatsoever, pay any interest on any deposit
lished by such Federal reserve banks, such rates to be which is payable on demand: Provided, That nothing
subject to the review and determination of the Federal herein contained shall be construed as prohibiting the
Reserve Board. If any member bank to which any payment of interest in accordance with the terms of
such advance has been made shall, during the life or any certificate of deposit or other contract heretofore
continuance of such advance, and despite an official entered into in good faith which is in force on the date
warning of the reserve bank of the district or of the of the enactment of this paragraph; but no such certifiFederal Reserve Board to the contrary, increase its cate of deposit or other contract shall be renewed or
outstanding loans secured by collateral in the form of extended unless it shall be modified to conform to this
stocks, bonds, debentures, or other such obligations, or paragraph, and every member bank shall take such
loans made to members of any organized stock exchange, action as may be necessary to conform to this parainvestment house, or dealer in securities, upon any graph as soon as possible consistently with its contracobligation, note, or bill, secured or unsecured, for the tual obligations: Provided, however, That this parapurpose of purchasing and/or carrying stocks, bonds, graph shall not apply to any deposit of such bank which
or other investment securities (except obligations of is payable only at an office thereof located in a foreign
the United States) such advance shall be deemed country, and shall not apply to any deposit made by a
immediately due and payable, and such member bank mutual savings bank, nor to any deposit of public
shall be ineligible as a borrower at the reserve bank of funds made by or on behalf of any State, county, school
the district under the provisions of this paragraph for district, or other subdivision or municipality, with
such period as the Federal Reserve Board shall respect to which payment of interest is required under
determine: Provided, That no temporary carrying or State law.
"The Federal Reserve Board shall from time to time
clearance loans made solely for the purpose of facilitating the purchase or delivery of securities offered for limit by regulation the rate of interest which may be
public subscription shall be included in the loans paid by member banks on time deposits, and may
prescribe different rates for such payment on time and
referred to in this paragraph."
SEC. 10. Section 14 of the Federal Reserve Act, as savings deposits having different maturities or subject
amended (U. S. C, title 12, sees. 353-358), is amended by to different conditions respecting withdrawal or repayadding at the end thereof the following new paragraph: ment or subject to different conditions by reason of
"(g) The Federal Reserve Board shall exercise different locations. No member bank shall pay any
special supervision over all relationships and trans- time deposit before its maturity, or Iwaive any require-




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1933

FEDERAL RESERVE BULLETIN

395

ment of notice before payment of any savings deposit collateral security for advances made to any person,
except as to all savings deposits having the same partnership, association, or corporation, if, in the case
of any such affiliate, the aggregate amount of such loans,
requirement."
(c) Section 8 of the Act entitled " An Act to establish extensions of credit, repurchase agreements, investpostal savings depositories for depositing savings at ments, and advances against such collateral security
interest with the security of the Government for repay- will exceed 10 per centum of the capital stock and
ment thereof, and for other purposes", approved surplus of such member bank, or if, in the case of all
June 25, 1910, as amended (U.S.C., title 39, sec. 758), such affiliates, the aggregate amount of such loans,
is amended by striking out the first sentence thereof extensions of credits, repurchase agreements, investand inserting in lieu thereof the following: "Any ments, and advances against such collateral security
depositor may withdraw the whole or any part of the will exceed 20 per centum of the capital stock and surfunds deposited to his or her credit with the accrued plus of such member bank.
interest only on notice given sixty days in advance and
" Within the foregoing limitations, each loan or extenunder such regulations as the Postmaster General may sion of credit of any kind or character to an affiliate
prescribe; but withdrawal of any part of such funds may shall be secured by collateral in the form of stocks,
be made upon demand, but no interest shall be paid bonds, debentures, or other such obligations having
on any funds so withdrawn except interest accrued to a market value at the time of making the loan or extenthe date of enactment of the Banking Act of 1933: sion of credit of at least 20 per centum more than the
Provided, That Postal Savings depositories may deposit amount of the loan or extension of credit, or of at least
funds in member banks on time under regulations to 10 per centum more than the amount of the loan or
be prescribed by the Postmaster General."
extension of credit if it is secured by obligations of any
(d) The second sentence of section 9 of the Act en- State, or of any political subdivision or agency thereof:
titled "An Act to establish postal savings depositories Provided^ That the provisions of this paragraph shall
for depositing savings at interest with the security of not apply to loans or extensions of credit secured by
the Government for repayment thereof, and for other obligations of the United States Government, the
purposes", approved June 25,1910, as amended (XJ.S.C, Federal intermediate credit banks, the Federal land
title 39, sec. 759), is amended by striking out the banks, the Federal Home Loan Banks, or the Home
period at the end thereof and inserting in lieu thereof Owners' Loan Corporation, or by such notes, drafts,
a colon and the following: "Provided, That no such bills of exchange, or bankers' acceptances as are eligible
security shall be required in case of such part of the for rediscount or for purchase by Federal Reserve banks.
deposits as are insured under section 12B of the Federal A loan or extension of credit to a director officer, clerk,
or other employee or any representative of any such
Reserve Act, as amended."
SEC. 12. Section 22 of the Federal Reserve Act, as affiliate shall be deemed a loan to the affiliate to the
amended (U.S.C., title 12, sees. 375, 376, 503, 593-595; extent that the proceeds of such loan are used for the
Supp. VI, title 12, sec. 593), is further amended by benefit of, or transferred to, the affiliate.
adding at the end thereof the following new paragraph:
"For the purposes of this section the term 'affiliate'
"(g) No executive officer of any member bank shall shall include holding company affiliates as well as other
borrow from or otherwise become indebted to any affiliates, and the provisions of this section shall not
member bank of which he is an executive officer, and apply to any affiliate (1) engaged solely in holding the
no member bank shall make any loan or extend credit bank premises of the member bank with which it is
in any other manner to any of its own executive affiliated, (2) engaged solely in conducting a safeofficers: Provided, That loans heretofore made to any deposit business or the business of an agricultural credit
such officer may be renewed or extended not more than corporation or livestock loan company, (3) in the capital
two years from the date this paragraph takes effect, if stock of which a national banking association is
in accord with sound banking practice. If any execu- authorized to invest pursuant to section 25 of the
tive officer of any member bank borrow from or if he be Federal Reserve Act, as amended, (4) organized under
or become indebted to any bank other than a member section 25 (a) of the Federal Reserve Act, as amended,
bank of which he is an executive officer, he shall make or (5) engaged solely in holding obligations of the
a written report to the chairman of the board of direc- United States Government, the Federal intermediate
tors of the member bank of which he is an executive credit banks, the Federal land banks, the Federal
officer, stating the date and amount of such loan or Home Loan Banks, or the Home Owners' Loan Corindebtedness, the security therefor, and the purpose poration; but as to any such affiliate, member banks
for which the proceeds have been or are to be used. shall continue to be subject to other provisions of law
Any executive officer of any member bank violating applicable to loans by such banks and investments
the provisions of this paragraph shall be deemed guilty by such banks in stocks, bonds, debentures, or other
of a misdemeanor and shall be imprisoned not exceeding such obligations."
one year, or fined not more than $5,000, or both; and
SEC. 14. The Federal Reserve Act, as amended, is
any member bank violating the provisions of this amended by inserting between section 24 and section
paragraph shall be fined not more than $10,000, and 25 thereof (U.S.C., title 12, sees. 371 and 601-605;
may be fined a further sum equal to the amount so Supp. VI, title 12, sec. 371) the following new section:
loaned or credit so extended."
"SEC. 24A. Hereafter no national bank, without the
SEC. 13. The Federal Reserve Act, as amended, is approval of the Comptroller of the Currency, and no
amended by inserting between sections 23 and 24 State member bank, without the approval of the Fedthereof (U.S.C., title 12, sees. 64 and 371; Supp. VI, eral Reserve Board, shall (1) invest in bank premises,
or in the stock, bonds, debentures, or other such
title 12, sec. 371) the following new section:
"SEC. 23A. No member bank shall (1) make any obligations of any corporation holding the premises of
loan or any extension of credit to, or purchase securities such bank or (2) make loans to or upon the security
under repurchase agreement from, any of its affiliates, of the stock of any such corporation, if the aggregate
or (2) invest any of its funds in the capital stock, bonds, of all such investments and loans will exceed the amount
debentures, or other such obligations of any such of the capital stock of such bank."
affiliate, or (3) accept the capital stock, bonds, debenSEC. 15. The Federal Reserve Act, as amended, is
tures, or other such obligations of any such affiliate as further amended by inserting after section 25 (a)




396

FEDERAL RESERVE BULLETIN

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1933

thereof (U.S.C., title 12, sec. 611-631) the following of the capital of the association, nor (2) shall the total
amount of the investment securities of any one obligor
new section:
"SEC. 25. (b) Notwithstanding any other provision or maker purchased after this section as amended takes
of law all suits of a civil nature at common law or in effect and held by the association for its own account
equity to which any corporation organized under the exceed at any time 15 per centum of the amount of the
laws of the United States shall be a party, arising out of capital stock of the association actually paid in and
transactions involving international or foreign banking, unimpaired and 25 per centum of its unimpaired surplus
or banking in a dependency or insular possession of the fund. As used in this section the term 'investment
United States, or out of other international or foreign securities' shall mean marketable obligations evidencing
financial operations, either directly or through the indebtedness of any person, copartnership, association,
agency, ownership, or control of branches or local or corporation in the form of bonds, notes and/or deinstitutions in dependencies or insular possessions of bentures commonly known as investment securities unthe United States or in foreign countries, shall be der such further definition of the term 'investment sedeemed to arise under the laws of the United States, curities' as may by regulation be prescribed by the
and the district courts of the United States shall have Comptroller of the Currency. Except as hereinafter
original jurisdiction of all such suits; and any defendant provided or otherwise permitted by law, nothing herein
in any such suit may, at any time before the trial contained shall authorize the purchase by the associathereof, remove such suits from a State court into the tion of any shares of stock of any corporation. The
district court of the United States for the proper limitations and restrictions herein contained as to dealdistrict by following the procedure for the removal of ing in, underwriting and purchasing for its own account,
causes otherwise provided by law. Such removal shall investment securities shall not apply to obligations of
not cause undue delay in the trial of such case and a the United States, or general obligations of any State
case so removed shall have a place on the calendar of or of any political subdivision thereof, or obligations
the United States court to which it is removed relative issued under authority of the Federal Farm Loan Act,
to that which it held on the State court from which it as amended, or issued by the Federal Home Loan Banks
or the Home Owners' Loan Corporation: Provided,
was removed.
That in carrying on the business commonly known as
"Notwithstanding any other provision of law, all the safe-deposit business the association shall not invest
suits of a civil nature at common law or in equity to in the capital stock of a corporation organized under
which any Federal Reserve bank shall be a party the law of any State to conduct a safe-deposit business
shall be deemed to arise under the laws of the United in an amount in excess of 15 per centum of the capital
States, and the district courts of the United States shall
the association actually paid
have original jurisdiction of all such suits; and any stock ofper centum of its unimpaired in and unimpaired
surplus."
Federal Reserve bank which is a defendant in any and 15
such suit may, at any time before the trial thereof,
The restrictions of this section as to dealing in investremove such suit from a State court into the district ment securities shall take effect one year after the date
court of the United States for the proper district by of the approval of this Act.
following the procedure for the removal of causes
SEC. 17. (a) Section 5138 of the Revised Statutes, as
otherwise provided by law. No attachment or execu- amended (U.S.C., title 12, sec. 51; Supp. VI, title 12,
tion shall be issued against any Federal Reserve bank sec. 51), is amended to read as follows:
or its property before final judgment in any suit,
"SEC. 5138. After this section as amended takes
action, or proceeding in any State, county, municipal, effect, no national banking association shall be organor United States court."
ized with a less capital than $100,000> except that such
SEC. 16. Paragraph "Seventh" of section 5136 of the associations with a capital of not less than $50,000
Revised Statutes, as amended (U.S.C., title 12, sec. 24; may be organized in any place the population of which
Supp. VI, title 12, sec. 24), is amended to read as does not exceed six thousand inhabitants. No such
association shall be organized in a city the population
follows:
"Seventh. To exercise by its board of directors or of which exceeds fifty thousand persons with a capital
duly authorized officers or agents, subject to law, all of less than $200,000, except that in the outlying dissuch incidental powers as shall be necessary to carry on tricts of such a city where the State laws permit the
the business of banking; by discounting and negotiat- organization of State banks with a capital of $100,000
ing promissory notes, drafts, bills of exchange, and other or less, national banking associations now organized or
evidences of debt; by receiving deposits; by buying hereafter organized may, with the approval of the
and selling exchange, coin, and bullion; by loaning Comptroller of the Currency, have a capital of not less
money on personal security; and by obtaining, issuing, than $100,000."
(b) The tenth paragraph of section 9 of the Federal
and circulating notes according to the provisions of
this title. The business of dealing in investment se- Reserve Act, as amended (U.S.C., title 12, sec. 329), is
curities by the association shall be limited to purchasing amended to read as follows:
and selling such securities without recourse, solely upon
"No applying bank shall be admitted to membership
the order, and for the account of, customers, and in no in a Federal reserve bank unless it possesses a paid-up
case for its own account, and the association shall not unimpaired capital sufficient to entitle it to become a
underwrite any issue of securities: Provided, That the national banking association in the place where it is
association may purchase for its own account invest- situated under the provisions of the National Bank
ment securities under such limitations and restrictions Act, as amended: Provided, That this paragraph shall
as the Comptroller of the Currency may by regulation not apply to State banks and trust companies organized
prescribe, but in no event (1) shall the total amount of prior to the date this paragraph as amended takes
any issue of investment securities of any one obligor or effect and situated in a place the population of which
maker purchased after this section as amended takes does not exceed three thousand inhabitants and having
effect and held by the association for its own account a capital of not less than $25,000, nor to any State bank
exceed at any time 10 per centum of the total amount or trust company which is so situated and which, while
of such issue outstanding, but this limitation shall not it is entitled to the benefits of insurance under section
apply to any such issue the total amount of which does 12B of this Act, increases its capital to not less than
not exceed $100,000 and does not exceed 50 per centum $25,000."




JUNE

1933

FEDERAL RESERVE BULLETIN

SEC. 18. Section 5139 of the Revised Statutes, as
amended (U.S.C., title 12, sec. 52; Supp. VI, title 12,
sec. 52), is amended by adding at the end thereof the
following new paragraph:
"After one year from the date of the enactment of
the Banking Act of 1933, no certificate representing
the stock of any such association shall represent the
stock of any other corporation, except a member bank
or a corporation existing on the date this paragraph
takes effect engaged solely in holding the bank premises
of such association, nor shall the ownership, sale, or
transfer of any certificate representing the stock of any
such association be conditioned in any manner whatsoever upon the ownership, sale, or transfer of a certificate representing the stock of any other corporation,
except a member bank."
SEC. 19. Section 5144 of the Revised Statutes, as
amended (U.S.C., title 12, sec. 61), is amended to read
as follows:
"SEC. 5144. In all elections of directors, each shareholder shall have the right to vote the number of shares
owned by him for as many persons as there are directors
to be elected, or to cumulate such shares and give one
candidate as many votes as the number of directors
multiplied by the number of his shares shall equal, or to
distribute them on the same principle among as many
candidates as he shall think fit; and in deciding all other
questions at meetings of shareholders, each shareholder
shall be entitled to one vote on each share of stock held
by him; except (1) that shares of its own stock held by
a national bank as sole trustee shall not be voted, and
shares of its own stock held by a national bank and one
or more persons as trustees may be voted by such other
person or persons, as trustees, in the same manner as if
he or they were the sole trustee, and (2) shares controlled by any holding company affiliate of a national
bank shall not be voted unless such holding company
affiliate shall have first obtained a voting permit as
hereinafter provided, which permit is in force at the
time such shares are voted. Shareholders may vote
by proxies duly authorized in writing; but no officer,
clerk, teller, or bookkeeper of such bank shall act as
proxy; and no shareholder whose liability is past due
and unpaid shall be allowed to vote.
"For the purpose of this section shares shall be
deemed to be controlled by a holding company affiliate
if they are owned or controlled directly or indirectly by
such holding company affiliate, or held by any trustee
for the benefit of the shareholders or members thereof.
"Any such holding company affiliate may make
application to the Federal Reserve Board for a voting
permit entitling it to cast one vote at all elections of
directors and in deciding all questions at meetings of
shareholders of such bank on each share of stock controlled by it or authorizing the trustee or trustees
holding the stock for its benefit or for the benefit of its
shareholders so to vote the same. The Federal Reserve
Board may, in its discretion, grant or withhold such
permit as the public interest may require. In acting
upon such application, the Board shall consider the
financial condition of the applicant, the general
character of its management, and the probable effect
of the granting of such permit upon the affairs of such
bank, but no such permit shall be granted except upon
the following conditions:
"(a) Every such holding company affiliate shall, in
making the application for such permit, agree (1) to
receive, on dates identical with those fixed for the
examination of banks with which it is affiliated, examiners duly authorized to examine such banks, who shall
make such examinations of such holding company
affiliate as shall be necessary to disclose fully the




397

relations between such banks and such holding company affiliate and the effect of such relations upon the
affairs of such banks, such examinations to be at the
expense of the holding company affiliate so examined;
£2) that the reports of such examiners shall contain such
information as shall be necessary to disclose fully the
relations between such affiliate and such banks and the
effect of such relations upon the affairs of such banks;
(3) thax such examiners may examine each bank
owned or controlled by the holding company affiliate,
both individually and in conjunction with other banks
owned or controlled by such holding company affiliate;
and (4) that publication or individual or consolidated
statements of condition of such banks may be required;
"(b) After five years after the enactment or the
Banking Act of 1933, every such holding company
affiliate (1) shall possess, and shall continue to possess
during the life of such permit, free and clear of any lien,
pledge, or hypothecation of any nature, readily marketable assets other than bank stock in an amount not
less than 12 per centum of the aggregate par value of all
bank stocks controlled by such holding company
affiliate, which amount shall be increased by not less
than 2 per centum per annum of such aggregate par
value until such assets shall amount to 25 per centum of
the aggregate par value of such bank stocks; and
(2) shall reinvest in readily marketable assets other than
bank stock all net earnings over and above ti per
centum per annum on the book value of its own shares
outstanding until such assets shall amount to such 25
per centum of the aggregate par value of all bank stocks
controlled by it;
" (c) Notwithstanding the foregoing provisions of
this section, after five years after the enactment of the
Banking Act of 1933, (1) any such holding company
affiliate the shareholders or members of which shall be
individually and severally liable in proportion to the
number of shares of such holding company affiliate held
by them respectively, in addition to amounts invested
therein, for all statutory liability imposed on such holding company affiliate by reason of its control of shares
of stock of banks, shall be required only to establish
and maintain out of net earnings over and above 6 per
centum per annum on the book value of its own shares
outstanding a reserve of readily marketable assets in an
amount of not less than 12 per centum of the aggregate
par value of bank stocks controlled by it, and (2) the
assets required by this section to be possessed by such
holding company affiliate may be used by it for replacement of capital in banks affiliated with it and for losses
incurred in such banks, but any deficiency in such
assets resulting from such use shall be made up within
such period as the Federal Reserve Board may by
regulation prescribe;
"(d) Every officer, director, agent, and employee of
every such holding company affiliate shall be subject to
the same penalties for false entries in any book, report,
or statement of such holding company affiliate as are
applicable to officers, directors, agents, and employees
of member banks under section 5209 of the Revised
Statutes, as amended (U.S.C., title 12, sec. 592); and
"(e) Every such holding company affiliate shall, in
its application for such voting permit, (1) show that
it does not own, control, or have any interest in, and
is not participating in the management or direction of,
any corporation, business trust, association, or other
similar organization formed for the purpose of, or
engaged principally in, the issue, flotation, underwriting, public sale, or distribution, at wholesale or retail
or through syndicate participation, of stocks, bonds,
debentures, notes, or other securities of any sort
(hereinafter referred to as 'securities company'); (2)

398

FEDERAL RESERVE BULLETIN

agree that during the period that the permit remains
in force it will not acquire any ownership, control, or
interest in any such securities company or participate
in the management or direction thereof; (3) agree that
if, at the time of filing the application for such permit,
it owns, controls, or has an interest in, or is participating in the management or direction of, any such
securities company, it will, within five years after the
filing of such application, divest itself of its ownership,
control, and interest in such securities company and
will cease participating in the management or direction
thereof, and will not thereafter, during the period that
the permit remains in force, acquire any further ownership, control, or interest in any such securities company
or participate in the management or direction thereof;
and (4) agree that thenceforth it will declare dividends
only out of actual net earnings.
" If at any time it shall appear to the Federal Reserve
Board that any holding company affiliate has violated
any of the provisions of the Banking Act of 1933 or
of any agreement made pursuant to this section, the
Federal Reserve Board may, in its discretion, revoke
any such voting permit after giving sixty days' notice
by registered mail of its intention to the holding company affiliate and affording it an opportunity to be
heard. Whenever the Federal Reserve Board shall
have revoked any such voting permit, no national bank
whose stock is controlled by the holding company
affiliate whose permit is so revoked shall receive deposits of public moneys of the United States, nor shall
any such national bank pay any further dividend to
such holding company affiliate upon any shares of such
bank controlled by such holding company affiliate.
"Whenever the Federal Reserve Board shall have
revoked any voting permit as hereinbefore provided,
the rights, privileges, and franchises of any or all
national banks the stock of which is controlled by such
holding company affiliate shall, in the discretion of the
Federal Reserve Board, be subject to forfeiture in
accordance with section 2 of the Federal Reserve Act,
as amended."
SEC. 20. After one year from the date of the enactment of this Act, no member bank shall be affiliated
in any manner described in section 2 (b) hereof with
any corporation, association, business trust, or other
similar organization engaged principally in the issue,
flotation, underwriting, public sale, or distribution at
wholesale or retail or through syndicate participation
of stocks, bonds, debentures, notes, or other securities.
For every violation of this section the member bank
involved shall be subject to a penalty not exceeding
$1,000 per day for each day during which such violation continues. Such penalty may be assessed by the
Federal Reserve Board, in its discretion, and, when so
assessed, may be collected by the Federal reserve bank
by suit or otherwise.
If any such violation shall continue for six calendar
months after the member bank shall have been warned
by the Federal Reserve Board to discontinue the same,
(a) in the case of a national bank, all the rights, privileges, and franchises granted to it under the National
Bank Act may be forfeited in the manner prescribed
in section 2 of the Federal Reserve Act, as amended
(U.S.C., title 12, sees. 141, 222-225, 281-286, and
502), or, (b) in the case of a State member bank, all
of its rights and privileges of membership in the Federal
Reserve System may be forfeited in the manner prescribed in section 9 of the Federal Reserve Act, as
amended (U.S.C., title 12, sees. 321-332).




JUNE 1933

SEC. 21. (a) After the expiration of one year after
the date of enactment of this Act it shall be unlawful—
(1) For any person, firm, corporation, association,
business trust, or other similar organization, engaged
in the business of issuing, underwriting, selling, or
distributing, at wholesale or retail, or through syndicate
participation, stocks, bonds, debentures, notes, or
other securities, to engage at the same time to any
extent whatever in the business of receiving deposits
subject to check or to repayment upon presentation of
a passbook, certificate of deposit, or other evidence of
debt, or upon request of the depositor; or
(2) For any person, firm, corporation, association,
business trust, or other similar organization, other than
a* financial institution or private banker subject to
examination and regulation under State or Federal law,
to engage to any extent whatever in the business of
receiving deposits subject to check or to repayment
upon presentation of a passbook, certificate of deposit,
or other evidence of debt, or upon request of the
depositor, unless such person, firm, corporation, association, business trust, or other similar organization
shall submit to periodic examination by the Comptroller
of the Currency or by the Federal reserve bank of the
district and shall make and publish periodic reports of
its condition, exhibiting in detail its resources and
liabilities, such examination and reports to be made and
published at the same times and in the same manner
and with like effect and penalties as are now provided
by law in respect of national banking associations
transacting business in the same locality.
(b) Whoever shall willfully violate any of the provisions of this section shall upon conviction be fined
not more than $5,000 or imprisoned not more than
five years, or both, and any officer, director, employee,
or agent of any person, firm, corporation, association,
business trust, or other similar organization who
knowlingly participates in any such violation shall be
punished by a like fine or imprisonment or both.
SEC. 22. The additional liability imposed upon shareholders in national banking associations by the provisions of section 5151 of the Revised Statutes, as
amended, and section 23 of the Federal Reserve Act, as
amended (U.S.C., title 12, sees. 63 and 64), shall not
apply with respect to shares in any such association
issued after the date of enactment of this Act.
SEC. 23. Paragraph (c) of section 5155 of the Revised
Statutes, as amended (U.S.C., title 12, sec. 36), is
amended to read as follows:
"(c) A national banking association may, with the
approval of the Comptroller of the Currency, establish
and operate new branches: (1) Within the limits of
the city, town or village in which said association is
situated, if such establishment and operation are at the
time expressly authorized to State banks by the law of
the State in question; and (2) at any point within the
State in which said association is situated, if such
establishment and operation are at the time authorized
to State banks by the statute law of the State in question by language specifically granting such authority
affirmatively and not merely by implication or recognition, and subject to the restrictions as to location imposed by the law of the State on State banks. No
such association shall establish a branch outside of the
city, town, or village in which it is situated unless it has
a paid-in and unimpaired capital stock of not less than
$500,000: Provided, That in States with a population
of less than one million, and which have no cities
located therein with a population exceeding one

JUNE

1933

FEDERAL RESERVE BULLETIN

399

hundred thousand, the capital shall be not less than manner as to discriminate against national banking
$250,000: Provided, That in States with a population associations, nor shall any such consolidated association
of less than one-half million, and which have no cities be removed solely because of the fact that it is a national
located therein with a population exceeding fifty banking association."
SEC. 25. The first two sentences of section 5197 of
thousand, the capital shall not be less than $100,000."
Paragraph (d) of section 5155 of the Revised Statutes, the Revised Statutes (U.S.C., title 12, sec. 85) are
as amended (U.S.C., title 12, sec. 36), is amended to amended to read as follows:
"Any association may take, receive, reserve, and
read as follows:
" (d) The aggregate capital of every national bank- charge on any loan or discount made, or upon any
ing association and its branches shall at no time be notes, bills of exchange, or other evidences of debt,
less than the aggregate minimum capital required by interest at the rate allowed by the laws of the State,
law for the establishment of an equal number of national Territory, or District where the bank is located, or at
banking associations situated in the various places a rate of 1 per centum in excess of the discount rate on
where such association and its branches are situated." ninety-day commercial paper in effect at the Federal
SEC. 24. (a) Sections 1 and 3 of the Act entitled reserve bank in the Federal reserve district where the
"An Act to provide for the consolidation of national bank is located, whichever may be the greater, and no
banking associations", approved November 7, 1918, as more, except that where by the laws of any State a
amended (U.S.C., title 12, sees. 33, 34, and 34a), are different rate is limited for banks organized under State
amended by striking out the words " county, city, laws, the rate so limited shall be allowed for associatown, or village" wherever they occur in each such tions organized or existing in any such State under this
section, and inserting in lieu thereof the words " State, title. When no rate is fixed by the laws of the State,
or Territory, or District, the bank may take, receive,
county, city, town, or village."
(b) Section 3 of such Act of November 7, 1918, as reserve, or charge a rate not exceeding 7 per centum,
amended, is further amended by striking out the second or 1 per centum in excess of the discount rate on ninetysentence thereof and inserting in lieu thereof the follow- day commercial paper in effect at the Federal reserve
ing: "The capital stock of such consolidated association bank in the Federal reserve district where the bank is
shall not be less than that required under existing law located, whichever may be the greater, and such infor the organization of a national banking association terest may be taken in advance, reckoning the days for
in the place in which such consolidated association is which the note, bill, or other evidence of debt has to
located. Upon such a consolidation, or upon a con- run."
solidation of two or more national banking associations
SEC. 26. (a) The second sentence of the first paraunder section 1 of this Act, the corporate existence of graph of section 5200 of the Revised Statutes, as
each of the constituent banks and national banking amended (U.S.C., title 12, sec. 84; Supp. VI, title 12,
associations participating in such consolidation shall be sec. 84), is amended by inserting before the period at
merged into and continued in the consolidated national the end thereof the following: "and shall include in the
banking association and the consolidated association case of obligations of a corporation all obligations of all
shall be deemed to be the same corporation as each of subsidiaries thereof in which such corporation owns or
the constituent institutions. All the rights, franchises, controls a majority interest."
and interests of each of such constituent banks and
(b) The amendment made by this section shall not
national banking associations in and to every species apply to such obligations of subsidiaries held by such
of property, real, personal, and mixed, and choses in association on the date this section takes effect.
action thereto belonging, shall be deemed to be transSEC. 27. Section 5211 of the Revised Statutes, as
ferred to and vested in such consolidated national bank- amended (U.S.C., title 12, sec. 161; Supp. VI, title 12,
ing association without any deed or other transfer; and sec. 161), is amended by adding at the end thereof the
such consolidated national banking association, by following new paragraph:
virtue of such consolidation and without any order or
"Each national banking association shall obtain
other action on the part of any court or otherwise, shall from each of its affiliates other than member banks and
hold and enjoy the same and all rights of property, furnish to the Comptroller of the Currency not less
franchises, and interests, including appointments, desig- than three reports during each year, in such form as
nations, and nominations and all other rights and inter- the Comptroller may prescribe, verified by the oath or
ests as trustee, executor, administrator, registrar of affirmation of the president or such other officer as may
stocks and bonds, guardian of estates, assignee, receiver, be designated by the board of directors of such affiliate
committee of estates of lunatics and in every other to verify such reports, disclosing the information herefiduciary capacity, in the same manner and to the same inafter provided for as of dates identical with those for
extent as such rights, franchises, and interests were which the Comptroller shall during such year require
held or enjoyed by any such constituent institution at the reports of the condition of the association. For
the time of such consolidation: Providedy however, purpose of this section the term 'affiliate* shall
the
That where any such constituent institution at the include holding company affiliates as well as other
time of such consolidation was acting under appoint- affiliates. Each such report of an affiliate shall be
ment of any court as trustee, executor, administrator, transmitted to the Comptroller at the same time as
registrar of stocks and bonds, guardian of estates, the corresponding report of the association, except
assignee, receiver, committee of estates of lunatics that the Comptroller may, in his discretion, extend
or in any other fiduciary capacity, the consolidated such time for good cause shown. Each such report
national banking association shall be subject to removal shall contain such information as in the judgment of
by a court of competent jurisdiction in the same manner the Comptroller of the Currency shall be necessary to
and to the same extent as was such constituent cor- disclose fully the relations between such affiliate and
poration prior to the consolidation, and nothing herein such bank and to enable the Comptroller to inform
contained shall be construed to impair in any manner himself as to the effect of such relations upon the
the right of any court to remove such a consolidated affairs of such bank. The reports of such affiliates
national banking association and to appoint in lieu shall be published by the association under the same
thereof a substitute trustee, executor, or other fiduciary, conditions as govern its own condition reports. The
except that such right shall not be exercised in such a Comptroller shall also have power to call for addi-




400

FEDERAL RESERVE BULLETIN

JUNE

1933

tional reports with respect to any such affiliate when- tion is paid from assessments on banks or affiliates
ever in his judgment the same are necessary in order thereof shall be without regard to the provisions of
to obtain a full and complete knowledge of the condi- other laws applicable to officers or employees of the
tions of the association with which it is affiliated. United States. The funds derived from such assessSuch additional reports shall be transmitted to the ments may be deposited by the Comptroller of the
Comptroller of the Currency in such form as he may Currency in accordance with the provisions of section
prescribe. Any such affiliated bank which fails to 5234 of the Revised Statutes (U.S.C., title 12, sec. 192)
obtain and furnish any report required under this and shall not be construed to be Government funds or
section shall be subject to a penalty of $100 for each appropriated monies; and the Comptroller of the Currency is authorized and empowered to prescribe reguladay during which such failure continues."
SEC. 28. (a) The first paragraph of section 5240 of tions governing the computation and assessment of the
the Revised Statutes, as amended (U.S.C., title 12, sec. expenses of examinations herein provided for and the
481), is amended by inserting before the period at the collection of such assessments from the banks and/or
end thereof a colon and the following proviso: "Pro- affiliates examined. If any affiliate of a national bank
vided, That in making the examination of any national shall refuse to permit an examiner to make an examinabank the examiners shall include such an examination tion of the affiliate or shall refuse to give any informaof the affairs of all its affiliates other than member banks tion required in the course of any such examination,
as shall be necessary to disclose fully the relations be- the national bank with which it is affiliated shall be
tween such bank and such affiliates and the effect of subject to a penalty of not more than $100 for each
such relations upon the affairs of such bank; and in the day that any such refusal shall continue. Such'penevent of the refusal to give any information required in alty may be assessed by the Comptroller of the Curthe course of the examination of any such affiliate, or in rency and collected in the same manner as expenses of
the event of the refusal to permit such examination, examinations."
all the rights, privileges, and franchises of the bank
SEC. 29. In any case in which, in the opinion of the
shall be subject to forfeiture in accordance with section Comptroller of the Currency, it would be to the advan2 of the Federal Reserve Act as amended (U.S.C., title tage of the depositors and unsecured creditors of any
12, sees. 141, 222-225, 281-286, and 502). The Comp- national banking association whose business has tjeen
troller of the Currency shall have power, and he is here- closed, for such association to resume business upon
by authorized, to publish the report of his examination the retention by the association, for a reasonable
of any national banking association or affiliate which period to be prescribed by the Comptroller, of all or any
shall not within one hundred and twenty days after part of its deposits, the Comptroller is authorized, in his
notification of the recommendations or suggestions of discretion, to permit the association to resume business
the Comptroller, based on said examination, have if depositors and unsecured creditors of the association
complied with the same to his satisfaction. Ninety representing at least 75 per centum of its total deposit
days' notice prior to such publicity shall be given to and unsecured credit liabilities consent in writing to
the bank or affiliate."
such retention of deposits. Nothing in this section
(b) Section 5240 of the Revised Statutes, as amended shall be construed to affect in any manner any powers
(U.S.C., title 12, sec. 481), is further amended by of the Comptroller under the provisions of law in force
adding after the first paragraph thereof the following on the date of enactment of this Act with respect to
the reorganization of national banking associations.
new paragraph:
SEC. 30. Whenever, in the opinion of the Comptroller
"The examiner making the examination of any
affiliate of a national bank shall have power to make a of the Currency, any director or officer of a national
thorough examination of all the affairs of the affiliate, bank, or of a bank or trust company doing business in
and in doing so he shall have power to administer oaths the District of Columbia, or whenever, in the opinion
and to examine any of the officers, directors, employees, of a Federal reserve agent, any director or officer of a
and agents thereof under oath and to make a report of State member bank in his district shall have continued
his findings to the Comptroller of the Currency. The to violate any law relating to such bank or trust comexpense of examinations of such affiliates may be pany or shall have continued unsafe or unsound pracassessed by the Comptroller of the Currency upon the tices in conducting the business of such bank or trust
affiliates examined in proportion to assets or resources company, after having been warned by the Comptroller
held by the affiliates upon the dates of examination of of the Currency or the Federal reserve agent, as the
the various affiliates. If any such affiliate shall refuse case may be, to discontinue such violations of law or
to pay such expenses or shall fail to do so within sixty such unsafe or unsound practices, the Comptroller of
days after the date of such assessment, then such ex- the Currency or the Federal reserve agent, as the case
penses may be assessed against the affiliated national may be, may certify the facts to the Federal Reserve
bank, and, when so assessed, shall be paid by such Board. In any such case the Federal Reserve Board
may cause notice to be served upon such director or
national bank: Provided, however, That, if the affiliation
is with two or more national banks, such expenses may officer to appear before such Board to show cause why
be assessed against, and collected from, any or all of he should not be removed from office. A copy of such
such national banks in such proportions as the Comp- order shall be sent to each director of the bank affected,
troller of the Currency may prescribe. The examiners by registered mail. If after granting the accused diand assistant examiners making the examinations of rector or officer a reasonable opportunity to be heard,
national banking associations and affiliates thereof the Federal Reserve Board finds that he has continued
herein provided for and the chief examiners, reviewing to violate any law relating to such bank or trust comexaminers and other persons whose services may be pany or has continued unsafe or unsound practices in
required in connection with such examinations or the conducting the business of such bank or trust company
reports thereof, shall be employed by the Comptroller after having been warned by the Comptroller of the
of the Currency with the approval of the Secretary of Currency or the Federal reserve agent to discontinue
the Treasury; the employment and compensation of such violation of law or such unsafe or unsound pracexaminers, chief examiners, reviewing examiners, assist- tices, the Federal Reserve Board, in its discretion, may
ant examiners, and of the other employees of the office order that such director or officer be removed from
of the Comptroller of the Currency whose compensa- office. A copy of such order shall be served upon such




JUNE

1933

FEDERAL RESERVE BULLETIN

401

director or officer. A copy of such order shall also be System in accordance with the provisions of section 9
served upon the bank of which he is a director or of the Federal Reserve Act, as amended.
SEC. 32. From and after January 1, 1934, no officer
officer, whereupon such director or officer shall cease
to be a director or officer of such bank: Provided, That or director of any member bank shall be an officer,
such order and thte findings of fact upon which it is director, or manager of any corporation, partnership,
based shall not be made public or disclosed to anyone or unincorporated association engaged primarily in the
except the director or officer involved and the directors business of purchasing, selling, or negotiating securities,
of the bank involved, otherwise than in connection and no member bank shall perform the functions offa
with proceedings for a violation of this section. Any correspondent bank on behalf of any such individual,
corporation, or unincorporated associasuch director or officer removed from office as herein partnership, such individual, partnership, corporation,
provided who thereafter participates in any manner in tion and no
the management of such bank shall be fined not more or unincorporated association shall perform the funcmember bank hold
than $5,000, or imprisoned for not more than five years, tions of a correspondent for any of any memberorbank,
on deposit any funds on behalf
or both, in the discretion of the court.
unless in any such case there is a permit
SEC. 31. After one year from the date of enactment by the Federal Reserve Board; and therefor issued
the Board is
of this Act, notwithstanding any other provision of authorized to issue such permit if in its judgment it is
law, the board of directors, board of trustees, or other not incompatible with the public interest, and to revoke
similar governing body of every national banking asso- any such permit whenever it finds after reasonable
ciation and of every State bank or trust company notice and opportunity to be heard, that the public
which is a member of the Federal Reserve System shall interest requires such revocation.
consist of not less than five nor more than twenty-five
SEC. 33. The Act entitled "An Act to supplement
members; and every director, trustee, or other mem- existing laws against unlawful restraints and monopober of such governing body shall be the bona fide lies, and for other purposes", approved October 15,
owner in his own right of shares of stock of such bank- 1914, as amended (U.S.C., title 15, sec. 19), is hereby
ing association, State bank or trust company having a amended by adding after section 8 thereof the followpar value in the aggregate of not less than $2,500, un- ing new section:
less the capital of the bank shall not exceed $50,000,
"SEC. 8A. That from and after the 1st day of Januin which case he must own in his own right snares ary 1934, no director, officer, or employee of any bank,
having a par value in the aggregate of not less than banking association, or trust company, organized or
$1,500, or unless the capital of the bank shall not ex- operating under .the laws of the United States shall be
ceed $25,-000, in which case he must own in his own at the same time a director, officer, or employee of a
right shares having a par value in the aggregate of not corporation (other than a mutual savings bank) or a
less than $1,000. If any national banking association member of a partnership organized for any purpose
violates the provisions of this section and continues whatsoever which shall make loans secured by stock or
such violation after thirty days' notice from the Comp- bond collateral to any individual, association, partnertroller of the Currency, the said Comptroller may ap- ship, or corporation other than its own subsidiaries."
SEC. 34. The right to alter, amend, or repeal this
point a receiver or conservator therefor, in accordance
with the provisions of existing law. If any State bank Act is hereby expressly reserved. If any provision of
or trust company which is a member of the Federal this Act, or the application thereof to any person or
Reserve System violates the provisions of this section circumstances, is held invalid, the remainder of the
and continues such violation after thirty days' notice Act, and the application of such provision to other
from the Federal Reserve Board, it shall be subject to persons or circumstances, shall not be affected thereby.
Approved June 16th, 1933, 11:45 a.m.
the forfeiture of its membership in the Federal Reserve




402

FEDERAL RESERVE BULLETIN

JUNE

1933

FEDERAL RESERVE STATISTICS, BY DISTRICTS, ETC.
DISCOUNTS BY MONTHS

DISCOUNTS BY WEEKS

[Averages of daily figures. In millions of dollars]

[In thousands of dollars]

1933.

Wednesday series (1933)

1932
Federal Reserve bank

Federal Reserve bank
May

April

May

May 3

15.2
78.8
46.1

17.9
112.4
55.8

30.2
101.6
62.7

68.1
18.8
20.4

59.4
20.7
25.6

56.8
24.4
31.9

16.1
3.3
7.9

Boston
New York....
PhiladelphiaCleveland
Richmond
Atlanta
Chicago
St. Louis

18.4
4.4
9.8

33.7
13.9
12.1

Minneapolis-

27.2
13.5
20.6
6.6
11.7
6.2
Kansas City..
73.2
80.3
44.8
Dallas.
338.9
424.8
486.5
San Francisco.
Total...
Back figures.—See Annual Reports for 1931 (table 80), 1928 (table 72),
and 1927 (table 55).

May 10 May 17 May 24 May 31

15,993
91,326
47,459

14,818
78,949
46,118

14,519
78,052
45,548

15,338
69,752
45,228

16,152
68,330
44,054

Cleveland
Richmond
Atlanta

79,106
20,175
22,142

73,056
18,932
21,699

67,044
18,460
21,262

61,539
17,984
17,938

55,025
18,360
18,247

Chicago
- St. Louis
Minneapolis

16, 782
3,693
8,489

15,973
3,263
8,264

15,816
2,953
7,770

15,592
2,850
7,442

15,177
4,955
7,072

Kansas City
Dallas
San Francisco

15,174
7,554
72,209

13,702
6,190
37,277

13,119
6,253
39,429

12,460
5,801
40,241

12,546
5,165
36,891

400,102

338,241

330,225

312,165

301,974

Boston New York
Philadelphia

-

Total

Back figures.—Bee Annual Reports for 1931 (table 83), 1930 (table 78)
etc.

CASH HOLDINGS, DEPOSITS, NOTE CIRCULATION, AND RATIO OF CASH HOLDINGS TO
LIABILITIES
[Amounts in thousands of dollars]
Averages of daily figures

Total gold reserves and
other cash

Federal Reserve notes in
circulation *

Total deposits

Federal Reserve bank
1933
May
Boston
New York....
PhiladelphiaCleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas C i t y Dallas
San Francisco.
Total...

1932
April

271,424
239,996
1,061,167 1,053,836
231,523 226,015

May

1932

1933

1932

1933

April

May

243,213 138,967 132,580 131,998
923,016 1,039, 264 1,029,531 1,046,840
236,995 128,010 123,250 123,745

223,746
714, 538
248,168

235,849
791,131
260,933

190,230
570, 724
249,982

74.8
60.5
61.5

65.1
57.9
58.8

75.5
57.1
63.4

May

May

1932

May

May

April

1933

Ratio of gold and other
cash to deposit and
Federal Reserve note
liabilities combined

April

276,860
182,931
126,245

291,745
182,281
121,656

290,518
93,465
120,282

159,293
80,342
59,836

152,432
72,539
54,250

151,153
55,202
50,343

327, 774
160,948
131,881

346, 548
177,142
143,748

291,757
91,858
115,713

56.8
75.8
65.8

58.5
73.0
61.4

65.6
63.6
72.4

942,876
164,086
79,334

905,174
157,147
76,422

700,354
110,647
75,909

315,727
78,706
45,848

300,496
76,823
44,738

314,447
61,404
43,201

861,235
146,980
93,445

903, 267
150,457
98,650

549,586
80.1
90,430 ~ 72.7
72,788 H 5 7 . 0

75.2
69.1
53.3

81.1
72.9
65.4

132,442
50,905
250,405

124,648
50,653
223,756

95,092
52,201
247,252

81,820
52,873
165,424

81,960
53,613
158,998

70,340
50,652
150,977

116,264
38,072
242,022

122,265
41,607
263,839

80,763
66.9
35,672
56.0
222,649 1 6 1 . 5

61.0
53.2
52.9

62.9
60.5
66.2

62.8

66.3

3,770,198 3,653,329 3,188,944 2,346,110 J2, 281,210 2,250,302 3,305,073 3,535,436 2,562,152

66.9

J Includes "Federal Reserve notes of other banks" as follows: Latest month, $18,318,000; month ago, $23,624,000; year ago, $14,406,000.




May

JUNE 1933

403

FEDERAL RESERVE BULLETIN

EACH FEDERAL RESERVE BANK—RESOURCES AND LIABILITIES, ALSO FEDERAL RESERVE
NOTE AND FEDERAL RESERVE BANK NOTE STATEMENT, MAY 31, 1933
[In thousands of dollars]

Total

RESOURCES
2,813,639
Gold with Federal Reserve agents._
44,353
Gold redemption fund with U.S. TreasuryGold held exclusively against Fed
2,857,992
eral Reserve notes
Gold settlement fund with F.R. Board- 409,834
Gold and gold certificates held by banks.. 252,072
3,519,898
Total gold reserves
286, 770
Other cash i__.
Total gold reserves and other cash._ 3,806,668
6,242
Redemption fund—F.R. bank notes

Boston

New
York

PhilaCleve- Richdelland mond
phia

Atlanta

MinSt.
Chicago Louis neapolis

Kansas
City

Dallas

San
Francisco

216, 219
5,055

719,546 172,000 210, 770 134,665 93,550
3,013 4,492 7,019 1,246 3,059

797,587 126,000 59,046 88,290 20,703 175,263
5,027 1,342 2,089 2,798 1,295 7,918

221,274
31,527
22,431

722, 559 176,492 217,789135,911 96,609
147, 596 11,432 32,523 10,257 15,997
151,693 13,492 4,753 4,508 3,520

802,61- 127,342 61,135 91,088 21,998183,181
75,900 17,270 13,952 16,798 9,189 :
27,393
7,380 1,494 1,327 13,026 6,065 22,383
885,894 146,106 76,414 120,912 37, 252 232,957
41,214 13,458 4,772 10,956
23,837
927,108 159, 564 81,186 131,868 46,949 256,794
1,500
100
100
50
100
200

275,232 1, 021,848 201,416 255,065 150,676 116,126
82,184 24,869 23, 713 15,822 15,358
-•
20,890
296,122 1, 104,032 226, 285 278, 778 166,498 131,484
292
250
1,000
2,500
150

Bills discounted:
Secured by U.S. Govt. obligations...
Other bills discounted

66,01
235,960

6,103
10,049

28,195 8,482 8,562 2,478 1,24;
40,135 35,572 46,463 15,882 17,004

3,505
11,672

2,442
2,513

25'
1,662
6,815 10,884

591 2,494
4,574 34,397

Total bills discounted
Bills bought in open market

301,974
19,862

16,152
3,114

44,054 55,025 18,360 18,24'
761
429
705
7,186 1,273

15,177
2,127

4,955
375

7,072 12,546
288
353

5,165 36,891
445 2,806

United States Government securities:
Bonds.
Treasury notes
Certificates and bills

441,071 20,132
656,593 36,400
791,91- 41,534

186,240 30,585 35,851 10,218 10,193
258,747 51,039 67,190 19,150 19,094
295,199 58,239 76,669 21,851 21,779

Total U.S. Govt. securities.
Other securities

1,889,578 98,066
4,823

740,186 139,863 179,710 51,219 51,066
4,141
525

Total bills and securities
_>_
Due from foreign banks
Federal Reserve notes of other banks
Uncollected items...
_
Bank premises..
All other resources

288,355 73,827 63,301 71,974 52,050168,318
11
16
106
499
106
256
731
937
588
2,748
338 1,258
38,356 12,149 9,066 16,626 10,116 14,117
7,605 3,285 1,746 3,559 1,792 4,244
732 1,742
1,
1,468 1,361
6,466,427 456,805 2,060,216 443,114 553,221 270,954 220,245 1,268,155 250,404 157,740 226,106 112,919 446,548

61,545 14,064 17,166 12,160 17,268 25,649
77,866 25,422 18,061 21,911 13,624 48,089
131,590 29,011 20,607 25,004 15,548 54,883
271,001 68,497 55,834 59,075 46,440128,621
107
50

2,216,237 117,332
281
3,815
329
15,143
316,047 37,71:
54, 255
3,280
749
48,020

.,496 70,008 70,018
819,843 185,715 235,
362
128
1,504
403
143
873
4,528
271 1,153 1,389
90,160 23,025 28,411 26,725 9,584
12,818 3,337 6,929 3,238 2,422
24,831 3,786 1,842 2,953 5,586

Federal Reserve notes in actual circulation. 3,203,102 221,624
F.R. bank notes in actual circulation
96,280 13,463

684,951 245,101 320,384 146,632 127,629
47,595 5,607 3,152
1,888

833,956145,385 91,497114,318 36,630 234,995
91
20,954
661
797
625 1,447

2,166,721 142,1961,026,46: 113,229 132, 526 62,698 46,732
72,328 1,034
41,115
476 3,288 4,153 10,761
542
2,905
7,848
779
289
735
260

272,141 62,118 40,859 74,314 48,486 144,955
3,518 1,607 1,814 1,189
588 2,785
252
215
171
965
215
520

Total resources.

Deposits:
Member bank —Reserve account
GovernmentForeign bank.
Member bank
Nonmember bank
Other deposits
Total deposits
Deferred availability items
Capital paid in
Surplus
All other liabilities..
Total liabilities
Ratio of total gold reserves and other cash *
to deposit and Federal Reserve note
liabilities combined

83,637
18,059
45,180

3,16:
5,367

5,668
1,433
9,930

6,761 13,857
790
1,612
197 3,975

6,481
1,611
4,099

2,638
257
3,514

30,273
5,618
3,133

4,357
4,122

1,134
1,591
950

4,354
144
310

262
855

5,559
646
8,728

,393, 773 152,306 1,087,518123,054155, 171 79,331 64,162 315,648 75,939 46,519 80,526 50,406 .63,193
i,
88,294 23,261 29,385 26,709 8,303
318,082 37,432
39,195 13,617 8,172 17,277 11,764 14,673
58,527 15,800 13,906 5,423 4,778
150,271 10,759
15,539 4,032 2,821 4,248 3,885 10,553
85,058 29,242 28,294 11,616 10,544
278,599 20,460
39,497 10,186 7,019 8,263 8,719 19,701
761
8,273 1,049 2,929 1,243 2,941
26,320
677
3,366 1,154 1,051
1,986
6,466,427 456,805 2,060,216 443,114 553, 221 270,954 220,245
1,268,155 250,404 157,740 226,106 112,919 446,548
68.0

79.:

62.3

61.5

58.6

73.

68.6

80.6

72.1

58.8

67.7

53.9

64.5

FEDERAL RESERVE NOTE STATEMENT
Federal reserve notes:
Issued to F.R. bank by F.R. agent- 3,436,872 234,527
Held by Federal Reserve bank
_ 233, 770 12,903
In actual circulation
3, 203,102 221,624

684,951 245,101 !20,384 146,63: 127,629

861,077 .55,270 94,163 123,195 38,965 276,908
27,121 9,885 2,666 8,877 2,335 41,913
833,956 145,385 91,497 114,318 36,630 234,995

Collateral held by agent as security for |
notes issued to bank:
Gold
2,813,639 !16,219
Eligible paper
_.
_
190,397 18,390
United States Government securities. 480,900

719,546 172,000 210,770 134, 665 93,550
49,885 21,238 32,003 11,272 12,484
68,000 .00,000 12,000 44,000

797,587126,
1,000 59,046 88,290 20,703175,263
11,361 3,928 5,100 6,145 5,148 13,443
61,000 26,000 30,900 32,000 15,000 92,000

760, 250 259,185 333,529 152,696 .47,107
75,299 14,084 13,145 6,064 19,478

FEDERAL RESERVE BANK NOTE STATEMENT
Federal Reserve bank notes:
Issued to F.R. bank (outstanding)
Held by Federal Reserve bank
In actual circulation
Collateral pledged against outstanding
notes:
Discounted and purchased bills
__
United States Government securities.

123,134
26,854

15,680
2,217

62,274
14, 679

6,280
673

4,840
1,"

96,280

13,463

47, 595

5,607

3,152

26,039
136,274

20,000

62,274

8,000

24,220
3,266

160

740
79

1,000
203

1,800
1,175

3,400
1,953

20,954

2,740
852

91

661

797

625

1,447

30,000

331
5,000

2,000

1,000

100
2,000

5,000

22,910
1,000

i "Other cash" does not include Federal Reserve notes or a bank's own Federal Reserve bank notes.




404

FEDERAL RESERVE BULLETIN

JUNE

1933

ALL MEMBER BANKS IN EACH DISTRICT
RESERVES HELD, EXCESS RESERVES, AND "BORROWINGS AT FEDERAL RESERVE BANES
[In millions of dollars]
Averages of daily figures
Reserves held
Total

Federal Keserve district

Borrowings at Federa 1 Reserve
banks

Excess

1933

1932

1932

1933

1932

1933

February i January February February 1 January February February i January February
155.8
979.5
127.5

147.2
1,230.3
127.0

119.6
811.5
118.4

43.9
81.4
12.5

34.2
294.3
10.7

1.6
12.9
1.4

12.1
67.6
53.9

12.3
57.2
47.0

39.9
178.8
121.9

135.6
62.5
44.8

141.5
52.8
44.2

141.0
51.8
47.6

1.5
15.1
5.0

4.9
3.9
2.5

1.1
1.3
2.3

37.7
18.2
19.2

24.5
16.2
17.4

121.7
36.4
45.0

Minneapolis

403.2
59.3
42.1

420.6
59.1
38.3

257.7
57.5
41.4

186.6
10.1
9.1

197.6
8.0
4.8

8.9
2.4
1.9

26.1
5.7
10.3

16.0
7.9
10.1

79.8
22.0
12.2

Kansas City
Dallas
San Francisco

78.7
52.4
149.7

67.0
46.4
141.7

68.1
49.2
143.6

21.6
11.6
19.0

9.0
5.3
8.5

4.7
3.8
1.6

14.6
4.1
35.9

11.6
4.4
29.8

35.4
14.6
128.5

2,291.0

2,515.9

1,907. 5

417.3

583.8

43.8

305.6

254.4

836.2

Boston
New York
Philadelphia

-

Cleveland
Richmond
Chicago

- --

Total

i March and April data not available.
Back figures.—For reserves held and borrowings at Federal Reserve banks, see Annual Reports for 1931 (tables 100 and 101), 1929 (tables 91),
and 1927 (tables 89 and 90).

NET DEMAND AND TIME DEPOSITS OF BANKS IN LARGER AND SMALLER

CENTERS

[In millions of dollars]
Averages of (laily figures
Member banks in larger centers (places over 15,000)
Federal Reserve district

Net demand
1932

1933
February^

January

1932

1933

February

February i

990
5,818
836

664
1,894
619

Net demand

January

1932

1933

February

February i

671
1,955
628

711
1,892
604

75
189
133

Time

January

1932

1933

February

February*

76
192
138

85
226
153

137
459
390

137
466
391

146
500
409

January

February

Cleveland
Richmond
Atlanta
Chicago - St. Louis
Minneapolis

.

Total

951
6,854
830
960
330
301

968
345
331-

982
302
289

987
301
296

1,024
291
291

128
74
53

128
76
55

148
86
67

252
159
58

253
159
59

270
166
70

1,473
348
172

- - -

942
6,574
822
935
316
286

Boston
New York
Philadelphia

Kansas City
Dallas
San Francisco

Time

Member banks in smaller centers (places under 15,000)

1,517
362
176

1,693
389
206

1,105
267
191

1,141
279
188

1,304
308
207

125
79
87

131
81
91

162
91
116

213
88
180

221
91
183

266
100
211

378
281
803

381
285
819

414
314
893

208
161
1,479

212
163
1,504

217
163
1,498

159
134
80

164
132
86

191
155
110

110
31
95

111
32
98

124
33
120

13,330

13,767

13,198

8,161

8,324

8,510

1,315

1,349

1,591

2,172

2,201

2,416

i March and April data not available.




405

FEDERAL RESERVE BULLETIN

JUNE 1933

WEEKLY REPORTING MEMBER BANKS IN 90 LEADING CITIES
PRINCIPAL RESOURCES AND LIABILITIES BY DISTRICTS, AND FOR NEW YORK CITY AND
CHICAGO
[In millions of dollars]
City

Federal Reserve District

Total

Total loans and investments:
May 3.
May 10May 17
May 24
May 31
Loans:
May 3
May 10
May 17
May 24
May 31..._
._
On securities:
May 3
May 10
May 17...
May 24
_
May 3 1 . . . .
All other:
May 3
May 10
May 17
May 24..
May 31
Investments:
May 3
May 10
May 17—
_...
May 24
,
May 31
U.S. Government securities:
May 3__
_
May 10....
May 17.
May 24
May 3 1 . . . .
All other:
May 3
May 10
May 17
May 24
May 31
Reserve with Federal Reserve
banks:
May 3___
_
May 10
May 17
May 24
May 31.
_
Cash in vault:
May 3
May 10
May 17
May 24
May 31
Net demand deposits:
May 3._
May 10
May 17
May 24
May 31.
Time deposits:
May 3 —
May 10May 17
May 24
May 31
Government deposits:
May 3
May 10
May 17
May 24
May 31
_
Due from banks:
May 3
May 10
May 17
May 24
May 31




Min- KanSt.
sas
Louis neap- City
olis

San New
Fran- York
cisco

Bos-

New Phila- Cleve- Rich- AtlandelYork phia land mond
ta

16,288
16,318
16,346
16,329
16,426

1,166
1,165
1,154
1,155
1,135

7,698
7,743
7,795
7,730
7,879

981
991
993
992

1,095
1,091
1,092
1,098
1,098

317
317
314
313
315

308
308
308
308
306

1,445
1,433
1,431
1,471
1,468

445
444
440
439
419

299
295
294
294
294

475
476
476
479
479

364
362
359
358
357

1,695
1.693
1,690
1,692
1,691

6,753
6,790
6,847
6,786
6,933

1,161
1,147
1,146
1,186
1,180

8,404
8,404
8,421
8,352
8,485

664
656
641
645
646

3,845
3,858
3,900
3,833
3,972

529
528
527
527
524

494
491
487
486
487

173
171
172
172
171

178
180
180
181
179

807
810
812
810
810

220
220
216
215
217

163
161
162
161
160

210
210
210
210
209

214
215
213
212
213

907
904
901
900

3,291
3,305
3,352
3,287
3,427

631
634
637
635

3,698
3,715
3,724
3,648
3,713

266 1,910
260 1,945
254 1,964
257 1,890
254 1,960

273
271
270
269
267

244
242
240
240

61
59
61
61

58
58
58
59
58

406
401
399
398
399

92
92
90
88
90

50
49
50
50
49

58
58
58
58
59

66
67
67

214
213
213
212
212

1,676
1,711
'., 735
,663
,733

343
335
335
333
334

1,935
1,913
1,936
1,943
2,012

256
257
257
258
257

250
249
247
246
248

112
112
111
111
111

120
122
122
122
121

401
409
413
412
411

128
128
126
127
127

113
112
112
111
111

152
152
152
152
150

148
148
146
146
147

693

,615
,594
,617
,624
,694

288
299
302
302
302

270

150
147
146
146
144

788
789
789
792
794

3,462
3,485
3,495
3,499
3,506

530
513
509
551
544

160
162
162
163
159

94
93
92
92
90

460
460
462
466
467

2,353
2,357
2,378
2,384
2,429

329
313
312
343
337

105
104
104
106
111

56
54
54
54
54

328
329
327
326
327

1,109
1,128
1,117
1,115
1,077

201
200
197
208
207

4,706
4,697
4,704
4,772

396
387
388
392

Chicago

7,884
7,914
7,925
7,977
7,941

502
509
513
510

3,853
3,885
3,895
3,897
3,907

452
463
466
465
461

601
600
605
612
611

144
146
142
141
144

130
128
128
127
127

638
623
619
661
658

225
224
224
224
202

136
134
132
133
134

4,909
4,908
4,934
4,963
4,948

314
319
323
320
300

2,511
2,514
2,534
2,539
2,585

208
217
219
218
212

392
391
396
400
399

99
100
96
95

85
83
83
81
81

390
374
375
406
402

123
124
123
114
85

73
71

2,975
3,006
2,991
3,014
2,993

188 1,342
190 1,371
190 1,361
190 1,358
189 1,322

244
246
247
247
249

209
209
209
212
212

45
45
45
46
46

248
249
244
255
256

102
100
101
110
117

1,464
1,536
1,557
1,635
1,624

90
83
91
106

783
843
867
963
912

207
211
199
198
205

17
17
16
16
16

48
49
46
48
55

10,348
10,509
10,681
10, 725
10,918

718
719
710
711
730

4,330
4,318
4,271
4,278
4,282

382
381
380
380
381

Chicago

136
127
136
134
150

71
71
71
70
71

26
25
24
24
24

17
18
17
17
17

186
201
205
186
209

19
19
20
16
20

49
46
45
46
46

82
88
90
87
87

734
797
823
913

164
179
184
166
187

10
10
10
10

15
17
15
16
16

10
10
10
10
9

5
5
5
5
5

58
56
52
47
47

5
5
5
5
5

12
13
12
12
12

13
13
13
13
14

38
38
36
37
44

46
45
42
37
36

5,705
5,834
5,973
6,022
6,181

592
596
604
594

580
579
586
588
590

175
175
173
178
176

135
138
139
137
137

1,004
1,007
1,018
1,029
1,040

262
261
261
259
235

143
146
151
152
162

316
319
319
320
322

212
212
211
210
210

506
523
536
525
537

5,318
5,425
5,558
5,601
5,749

849
852
860
872
879

1,116
1,109
1,068
1,072
1,075

262
261
261
261
261

127
127
127
127
127

472

158
157
157
157
153

141
141
141
140

158
159
159
159
160

124
123
123
123
125

895
893
890
891

368

129
129
129
129
127

731
723
692
685
688

352
352
350
351
360

134
121
113
113
113

258
231
218
219
218
1,217
1,255
1,328
1,317
1,333

Dallas

15
13
12
12
12

11
9
8
9
9

4
3
3
3
2

121
120
114
111
123

110
107
97
87

58
63
72
66
70

470
479
11
10
10
10
10

1
1
1
1
1

59
54
51
51
51

124
112
105
105
105

10
9

237
262
280
287
282

108
116
125
122
122

135
129
149
143
140

90
81
81
75
77

180
204
221
225
222

406

FEDERAL RESERVE BULLETIN

JUNE

1933

PRINCIPAL RESOURCES AND LIABILITIES KY DISTRICTS, AND FOR NEW YORK CITY AND
CHICAGO-—Continued
[In millions of dollars]
Federal Reserve District
Total

Due to banks:
May3._
May 10
_
May 17
.
May 24
May 31
_
Borrowings from Federal Reserve banks:
May3__
May 10
May 17
May 24
May 31

2,623
2,700
2,762
2,754
2,812

New Phila- Cleve- Rich- AtlandelYork phia land mond
ta

Boston

161
158
153
154
152

1,244
1,304
1,354
1,353
1,411

Chicago

147
152
154
156
159

159
156
156
152
153

City

MinSt.
Louis neapolis

Kansas
City

San
New
Fran- York
cisco

Dal-

144
145
150
150
148

299
310
310
313
311

141
145
154
153
148

Chicago

1,186
1,251
1,300
1,300
1,356

240
253
254
258
255

129
80
85
78
76

RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES OF EACH DISTRICT
Prime commercial paper
Federal Reserve
bank or branch
city

1933
May

Boston.

1932
April

3 -5

New York City
Buffalo

Loans secured by prime
stock exchange collateral

May

1933
May

Philadelphia..

4 -4}
5 -6

April

May

-6

May

5 -6

5 -6

5 -5

5 -6

5 -6
5 -6
5 -6

-7
6
5V2-6

6 -8
6 -8
6
5 -7

6 -8
6 -8
6
5 -7

4

-5

4 -5

Chicago.
Detroit—
St. L o u i s . . . .
Little RockLouis ville.-.

4 -5

Minneapolis..
Helena

Pi

Kansas City
Denver
Oklahoma City
Omaha
Dallas
El Paso.
Houston
San Antonio..

4
7
5
5

San Francisco
Los Angeles
Portland...
Salt Lake City
Seattle
Spokane

5 -6
5H-6
4K-6

_

-7
-8
-6
-8

1932
April

4

-4

-6

6
-1

-6
-7

6

5 -6

5 -6
6 -8

7

-8

4 -4
7 -8

5 -6
7 -8

5 -6
7 -8

5 -6
6 -7
6

r

6
-5

5

5 -6
6
6 -7

-5
6

3 -4
5 -6

5 -6
6

5 -5}
5 -6
5 -6
5 -6

6
5 -5M
4 -7
7 -8
5 -8

-7

5 -6
5

-1

6 -8
6 -8
6

6 -8
5 -7
6 -6H

4 -5
6 -8
6 -8

5
6 -8
6 -8

5 -5
7 -8

3 -5
6 -7
J4

3 -5
6 -7

6 -8
6 -8
6 -6
6
6
6

-7
-8
6
-7

6 -8
7 -8
6
6 -7

5 -6
6 -6

5 -6

5 -6

5 -6
6 -6}

6 -6^
6 -7

6
6

6
6
-6}
-7

5 -6
6 -8
6 -8
6
5H-7

4^-6
6K8

4 -6
4^-6
6
5- -6
7 -8
5 -7

5
6
6

5H-6
5 -6

7 -8
6 -7
5 -6
6 -6^
6
6
6 -7

6 -8
6 -8
6 -6

8
5 -6
6 -8

8
5 -6
6 -8

6
6

-7
7

6 -6H
6 -7
6 -7

5 -6
6 -61
3 -5
6 -8

6

-7

-7
6
6

5 -6
6 -6
5 -6

-7

6

5 -6

5H-6
8

IT
5

5H-6
6 -6J
6 -7
7

-7

6
6
6

6 -8
6 -6J

-5H

6
-7
6
6

NOTE.—Rates at which the bulk of the loans of each class were made by representative banks during the week ending 15th of month.
from about 200 banks with loans exceeding $8,000,000,000; reporting banks are usually the largest banks in their respective cities.




May

4 -5

4
6

4H-6
4H8
5 -7
6

May

6

5 -6
5 -6

5 -6

Atlanta
Birmingham..
Jacksonville..
Nashville
New Orleans.

May

1933

5 -6

6

Richmond..
Baltimore-Charlotte

April

4

5 -6
5 -6

Interbank loans

1932

4^-5
5M6

5
4

1932

4 -5
5 -6

Cleveland
Cincinnati
Pittsburgh....

Loans secured by warehouse
receipts

5 -5^
5 -6
5 -5H
6

5
6
6
6 -6K
6
6

Rates

JUNE

407

FEDERAL RESERVE BULLETIN

1933

OTHER BANKING AND FINANCIAL STATISTICS
SHIPMENTS AND RECEIPTS OF AMERICAN
CURRENCY TO AND FROM EUROPE

MATURITY DISTRIBUTION OF BILLS AND
SHORT-TERM SECURITIES

BY SELECTED BANKS IN NEW YORK CITY

[In thousands of dollars]

[Paper currency only. In thousands of dollars]
1932

Month

With91 days
Total in 15 16 to 30 31 to 60 61 to 90 to 6 Over
6mos.
days days days days

1933

Net
Net
ShipShipReReshipshipments ceipts ments
ments ceipts ments
to
from
from (-)or
to
(-)or
Europe Europe receipts Europe Europe receipts

(+)

January __
February...March
April
May
June
. .
July
August
..__
September
October
November
December

25
0
0
0
0
12
20
152
36
7
70
245

3,335
5,221
8,468
4,563
10,938
16,265
6,694
6,458
6,603
5,294
6,013
3,986

+3,310
+5,221
+8,468
+4,563
+10,938
+16,253
+6,674
+6,306
+6,567
+5,287
+5,943
+3,742

(+)

3 6,304 +5,301
105 5,589 +5,484
101 13,786 +13.685
25 8,049 +8,024
1 12,523 +12,522

For description and back figures see BULLETIN for January 1932,
pp. 7-9.

UNITED STATES POSTAL SAVINGS
[Balance to credit of depositors. In millions of dollars]

January
February.
March
April
May
June
July - August
September
October
November
December -

1928

1929

1930

1931

1932

148.9
151.1
152.0
152.2
152.0
152.1
151.7
152.2
152.3
153.1
153.9
153.9

End of month

153.5
154.8
155.0
154.3
153.8
153.6
157.8
160.1
160.3
161.6
163.7
164.3

165.1
167.9
169.5
170.2
171.2
175.3
180.7
186.5
189.8
192.5
200.7
245.4

278.4
292.1
302.7
313.8
325.0
347.4
372.5
422.7
469.9
538.1
565.5
605.1

665.6
942.5
691.8 1,006.2
705.3 1,112. 7
722.1 »1,157.7
742.6 PI, 178.3
784.8
828.5
848.5
857.4
870.8
885.2
900.8

Preliminary.
177784—33

6




1933

Bills discounted:
May 3
May 10
May 17
May 24
May 31
Bills bought in
open market:
May3
. May 10
May 17
May 24
May 31
Certificates and
bills:
May 3
May 10
May 17
May 24
May 31
M u n i c i p a l warrants:
May 3
May 10
May 17
May 24
May 31

400,102 255, 564
338,
338 241 215,315
215315
330,225 212,662
165
312,65 195,, 699
071
301,974 192,071

27,458
22,711
22,485
22,195
24,148

47,382
28,606
23,570
26,813
41, 687

144,152
112, 607
77, 543
42, 662
19,862

60, 400
28,705
4,533
3,677
5,239

4,252
3,819
2,634
3,870
842

73,716
75,017
65,036
33, 563
12,479

826,730 52,400 86,600 164,360
826,676 95,500 70,750 120,975
821,124 86,600 127,875 73, 238
801, 523 61, 250 107,975 62,638
791,914 127', 625 37, 500 81, 288
5,641 5,401
5,464 5,201
5,404 5,192
5,386 5,174
4,823 4,738

51
51
127
127
25

152
152
25
25
10

62,530 6,793
64,701 6,558
64,943 6,338
61, 411 5,889
36,416 7,464

375
350
227
158
188

5,734
5,016
5,340
1,552
1,302
56, 000 297, 392 169,978
72,100 297, 372 169,979
127, 956 229,976175,479
141, 796 238,226 189,638
111, 646 243,226 190, 629

408

FEDERAL RESERVE BULLETIN

JUNE 1933

INDUSTRIAL PRODUCTION, BY INDUSTRIES
[Index numbers of the Federal Reserve Board, 1923-25 average=100]
Without seasonal
adjustment

Industry

Adjusted for seasonal variation

Without seasonal
adjustment
Industry

1933

1932

1933

1932

1933

Apr. Mar. Apr. Apr. Mar. Apr.

Manufactures—Total __. »68
IRON AND STEEL

Pig i r o n . . .
Steel ingots

-...

Cotton consumption
Wool
Consumption
Machinery activity
Carpet and rug-loom
activity
_-.
Silk
Deliveries
Loom activity

56
64
56
34
112
131
76

29
95
107
72

38
95
107
73

*90

84

F O O D PRODUCTS

Slaughtering and meat packHogs
Cattle
Calves
Sheep
Wheat flour
Sugar meltings

92
95
79
106
146
106

LUMBER
TRANSPORTATION EQUIPMENT:

'36
29
36
67
73
40
43
36

81
103
149
80
77

111

102
107
90
98
156
116

85
81
85
91
149
100

61

82
82
74
92
136
94

()
13
1
132
)

»77
59

62

84

149
101

111
92

138
114

23

29

34
1
112

45
7
111

()
96
108
91

*83

P A P E R AND PRINTING

Wood pulp and paper
Newsprint
Book paper
Wrapping paper
Fine paper
Box board
Wood pulp, mechanical.
Wood pulp, chemical—
Paper boxes
Newsprint consumption

61
32
27
'33
65
68
41
.
44

63

59
'25
18
25
78
91
46
49
52

39
21
41

TEXTILES

Automobiles
Locomotives
Shipbuilding

Adjusted for seasonal variation

149
95
24

110
22
27
1
144

92
94
159
88
67
93
86
71
95
83
79
83
138
106
27

1932

1933

Apr. Mar. Apr. Apr. Mar. Apr.
L E A T H E R A N D PRODUCTS.

Tanning _
Sole leather
Upper leather:
Cattle
Calf and k i p . .
Goat and kid._
Boots and shoes

78

71
63
98
95

105

)

107

93

76
70
99
97

CEMENT AND GLASS:

29
59

NONFERROUS

45
63

55

Cement
Glass, plate

58

135
171
78
95
75
53
45
46
32
94
47
125

144
185
78
96
82
62
82
85
58
100
62
127

140
(2)
85

135
(2)
80

()

()
51
41

74

72

72

51
63
120
47
46
48

46
85
112
45
45
40

55
44
108
45
45

46
57

M E T A L S *—Tin

deliveries
FUELS, MANUFACTURED:

Petroleum refining
Gasoline
Kerosene
Fuel oil
_
Lubricating oil
Coke, byproduct

_.

_

R U B B E R T I R E S AND T U B E S

Tires, pneumatic
Inner tubes
TOBACCO PRODUCTS

Cigars
Cigarettes
Minerals—TotalBituminous coal
Anthracite coal
Petroleum, crude
Zinc.,—
Lead
Silver

-

140
179
84
94
81
54
76
79
53
107
58
139
65
46
45
108
47
45
36

54
65
67
47
116
61
153

35
8
115

p Preliminary.
'1 Revised.
Includes also lead and zinc; see "Minerals."
a Without seasonal adjustment.
NOTE.—For description see BULLETIN for February and March 1927. F o r latest revisions see BULLETIN for March 1932, p p . 194-196.




1932

42
29
99
51
132
81
51
77
122
44
45
44

144

61
70
72
51
109
66
139
79
55
81
112
43
45
40

409

FEDERAL RESERVE BULLETIN

J U N E 1933

FACTORY EMPLOYMENT AND PAY ROLLS, BY INDUSTRIES
[Index numbers of the Federal Reserve Board; adjusted to Census of Manufactures through 1927,1923-25 average=100]

Factory employmen t

Factory pay rolls

Without seasonal adjustment Adjusted for seasonal variation Without seasonal adjustment
Industry
1932

1933

April
Total
I R O N AND STEEL AND PRODUCTS.

,St68l works Rtifl rolling rpills

Hardware
Structural-iron work. _ _
_
Heating apparatus
Steam fittings
Stoves
_ ._ ._
Cast-iron pipe
_
MACHINERY .
Foundry and machine-shop products... _ _
Machine tools
Agricultural implements
Electrical machinery _
TEXTILES AND PRODUCTS..

_..

A Fabrics
Cotton goods
Woolen and worsted manufactures
_.
Woolen and worsted goods
Carpets and rugs
Hosiery and knit goods.
. _.
Silk manufactures
Dyeing andfinishingtextiles
B. Wearing apparel
. _ _
Clothing, men's
Shirts and collars
Clothing, women's
Millinery

F O O D AND PRODUCTS

Baking
.
_
_. . ._
Slaughtering and meat packing
C onfectionery
Ice cream.
Flour
_
Sugar refining, cane - -PAPER AND PRINTING
.
_ _ __
Printing, book and job
Printing, newspapers and periodicals
Paper and pulp
_
...
Paper boxes
LUMBER AND PRODUCTS
_ _
_
Lumber, sawmills . _
Lumber, millwork
Furniture

__ _

TRANSPORTATION EQUIPMENT

Car building and repairing

Shipbuilding
L E A T H E R AND MANUFACTURES

Boots and shoes.
__ _
Leather
_ _
Clay products _ . _ _ .
_ _
Brick, tile, and terra cotta
Pottery
Glass.
_. - _. .
Cement

CEMENT, CLAY, AND GLASS PRODUCTS

NONFERROUS METAL PRODUCTS
Stamped and enameled ware
Brass, bronze, and copper _ _ .

_

_,__

CHEMICALS AND PRODUCTS

Chemicals and drugs
Petroleum refining
Fertilizers
__

.

___ _

R U B B E R PRODUCTS

Automobile tires and tubes
Rubber boots and shoes

_

_

__» .

TOBACCO MANUFACTURES

Cigars and cigarettes
Chewing and smoking tobacco, snuff

_

57.8
50.6
54.1
48.1
44.2
42.9
37.6
47.9
26.8
43.1
41.6
33.4
36.2
48.4
69,7
69.6
73.4
53.9
55.8
43.8
83.1
53.2
86.4
69.8
51.2
67.2
96.2
73.7
78.2
81.4
78.9
76.6
64.8
74.6
73.0
78.4
71.7
93.6
75.4
69.1
32.8
28.4
31.4
45.9
41.4
38.5
44.4
49.8
75.0
77.7
63.9
40.5
32.5
22.7
59.4
58.6
36.7
44.4
24.0
51.4
82.4
78.8
75.9
129.1
57.1
60.6
46.7
56.3
54.9
66.9

March
56.7
49.1
52.7
47.9
43.3
39.3
33.7
44.4
22.1
42.8
41.2
34.0
37.9
48.1
67.7
68.1
72.0
51.9
53.4
44.2
81.3
52.8
85.2
66.7
51.6
66.2
87.4
69.2
76.9
80.4
78.2
73.3
63.4
72.2
72.6
78.7
72.6
92.9
75.3
71.0
31.8
27.4
29.4
45.7
42.5
40.3
43.9
54.1
76.6
78.8
67.8
38.1
31.2
20.7
59.8
55.6
31.0
42.3
21.2
49.4
78.2
80.1
75.8*
74.2
57.0
60.4
46.4
57.6
56.1
69.7

April
64.0
59.8
63.0
57.0
59.4
49.3
43.4
54.7
39.9
57.0
52.1
50.3
47.8
69.7
67.9
67.3
69.4
49.0
48.1
53.8
83.4
54.4
91.3
69.4
50.8
65.3
99.3
66.4
80.6
87.3
80.3
71.1
72.8
75.9
72.4
85.3
84.6
97.4
79.3
74.7
39.6
34.1
39.5
55.4
53.0
45.5
58.9
85.2
78.8
81.3
68.3
48.8
43.1
33.0
70.9
62.1
44.8
53.9
34.4
60.5
82.4
81.9
78.6
99.0
66.6
69.3
58.7
68.4
68.3
70.2

1932

1933

April
57.7
50.0
53.0
48.9
45.2
42.6
37.2
47.6
26.4
42.6
40.9
33.1
34.1
48.4
68.5
69.2
73.4
54.4
56.7
42.7
81.3
52.4
83.9
66.8
52.9
67.2
88.4
62.9
81.2
82.7
82.3
84.2
67.4
78.1
71.7
78.8
72.2
93.3
75.4
71.1
33.3
28.7
31.2
47.7
40.1
38.3
41.5
47.0
76.4
79.3
64.4
40.2
32.2
22.5
58.5
57.8
37.3
43.4
22.9
50.5
77.6
78.1
75.9
80.0
56.7
59.6
47.9
57.5
56.2
67.5

March
56.6
48.3
51.6
47.2
44.4
39.6
33.3
45.4
22.2
42.2
40.5
33.4
35.3
48.0
65.4
66.9
70.6
51.7
53.4
42.7
79.6
51.4
83.1
61.9
50.6
65.2
77.1
61.0
78.4
81.0
79.8
76.3
71.1
72.4
72.0
78.5
71.7
92.7
75.4
71.9
32.5
28.3
29.5
46.3
41.7
40.5
41.9
50.9
75.7
78.0
66.2
38.9
32.1
22.4
58.6
55.3
33.1
41.0
19.9
48.1
75.6
79.1
76.6
49.8
56.6
59.7
47.3
57.8
56.7
66.4

April
64.3
59.0
61.7
57.8
60.8
48.9
42.9
54.4
39.4
56.4
51.3
49.9
44.9
69.7
66.7
66.8
69.3
49.4
48.9
52.4
81.7
53.6
88.6
66.4
52.4
65.3
91.3
56.7
83.6
88.7
83.7
78.2
75.7
79.4
71.1
85.7
85.2
97.1
79.4
76.8
40.2
34.3
39.3
57.6
51.1
45.2
55.1
80.3
80.2
83.0
68.8
48.4
42.7
32.7
69.8
61.3
45.6
52.7
32.8
59.4
78.5
81.2
78.6
61.3
66.1
68.1
60.2
70.1
69.9

70.8

1933

April
38.6
24.4
25.4
22.4
21.8
24.0
20.6
27.2
14.2
24.4
21.0
18.4
25.9
33.4
45.2
43.0
44.4
31.4
33.4
22.6
56.3
32.1
64.0
49.8
28.3
41.7
74.9
60.1
62.6
65.4
65.4
51.4
52.3
61.2
59.4
62.4
56.0
81.0
49.7
53.3
15.6
13.1
16.2
21.0
30.6
28.6
32.3
37.4
45.9
46.0
45.4
22.0
14.2

March
36.9
22.4
23.2
22.1
20.2
21.0
18.3
23.6
12.6
24.0
20.8
18.9
26.5
32.1
41.3
40.8
42.8
28.7
30.0
22.9
53.2
32.1
59.2
42.4
31.1
41.3
57.6
40.3
59.8
64.2
61.0
47.4
51.0
55.8
59.4
63.3
57.9
81.8
49.2
53.5
14.3
12.3
13.9
19.0
29.2
29.9
27.0
40.3
47.1
46.2
50.3
20.6
13.8

8.3

7.4

29.9
39.9
18.3
27.4
16.5
30.6
60.8
58.4
63.8
66.4
34.2
35.2
30.2
35.9
34.0
51.8

30.4
36.7
16.4
25.1
14.6
28.1
60.4
59.8
64.5
40.7
31.1
31.7
28.6
36.0
34.3
50.2

NOTE.—For description of these indexes see BULLETIN for November 1929, pp. 706-716, and November 1930, pp. 662-677.




1932

April
48.7
32.1
32.0
33.3
38.1
29.6
27.1
32.0
26.2
39.1
33.0
33.4
39.3
54.4
49.4
46.9
47.2
32.0
31.8
32.5
65.6
37.4
71.5
54.6
31.6
43.8
84.5
58.8
72.8
77.6
73.8
59.9
71.3
66.6
61.5
79.7
77.0
99.1
62.3
66.1
23.2
19.3
24.2
31.2
43.9
37.4
47.1
81.8
55.7
55.7
55.7
31.7
23.6
15.4
45.0
49.2
29.9
38.3
27.0
41.6
68.5
67.2
71.2
65.1
48.3
50.1
41.0
49.3
48.0
60.0

410

FEDERAL RESERVE BULLETIN

JUNE 1933

WHOLESALE PRICES, BY GROUPS OF COMMODITIES
[Index of Bureau of Labor Statistics. 1926=100]
Other commodities
Year and month

1928__
19291930
1931
_
1932
1932—April
May
June
July
August
September
October. __
November
December.
1933—January...
February,
March
April

All
commodities

Farm
products

Foods

96.7
95.3
86.4
73.0
64.8
65.5
64.4
63.9
64.5
65.2
65.3
64.4
63.9
62.6
61.0
59.8
60.2
60.4

105.9
104.9
88.3
64.8
48.2
49.2
46.0
45.7
47.9
49.1
49.1
46.9
46.7
44.1
42.6
40.9
42.8
44.5

101.0
99.9
90.5
74.6
61.0
61.0
59.3
58.8
60.9
61.8
61.8
60.5
60.6
58.3
55.8
53.7
54.6
56.1

Total

Hides and Textile Fuel and Metals Building Chemi- House- Miscelcals and furnishleather
lighting and metal
products products materials products materials drugs ing goods laneous

92.9
91.6
85.2
75.0
70.2
70.9
70.4
70.1
69.7
70.1
70.4
70.2
69.8
69.0
67.3
66.0
65.8
65.3

121.4
109.1
100.0
86.1
72.9
75.0
72.5
70.8
68.6
69.7
72.2
72.8
71.4
69.6
68.9
68.0
68.1
69.4

95.5
90.4
80.3
66.3
54.9
56.1
54.3
52.7
51.5
52.7
55.6
55.0
53.9
53.0
51.9
51.2
51.3
51.8

84.3
83.0
78.5
67.5
70.3
70.2
70.7
71.6
72.3
72.1
70.8
71.1
71.4
69.3
66.0
63.6
62.9
61.5

94.1
95.4
89.9
79.2
71.4
72.5
71.5
70.8
69.7
69.6
70.5
70.7
70.7
70.8
70.1
69.8
70.3
70.2

97.0
100.5
92.1
84.5
80.2
80.3
80.1
79.9
79.2
80.1
80.1
80.3
79.6
79.4
78.2
77.4
77.2
76.9

95.1
94.3
92.7
84.9
75.1
76.3
74.8
74.7
74.0
73.6
73.7
73.7
73.7
73.6
72.9
72.3
72.2
71.5

95.6
94.2
89.1
79.3
73.5
74.4
73.6
73.1
73.0
73.3
72.9
72.7
72.4
72.3
71.6
71.3
71.2
71.4

1933

1932

Subgroups
Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

46.1
50.3
52.7

43.5
51.4
52.1

44.5
49.2
51.2

42.6
44.4
49.6

37.7
46.7
48.2

36.7
54.1
48.4

38.2
52.8
50.8

37.4
51.2
52.1

34.4
45.0
52.1

33.2
41.9
53.9

31.7
38.7
51.3

32.9
37.8
48.7

32.7
40.1
44.2

36.0
43.0
45.3

44.8
41.0
46.7

64.1
69.6
61.8
59.5
59.4

-

FOODS:

Butter, cheese, and milk
Cereal products
Fruits and vegetables
Meats
Other foods
HIDES AND LEATHER PRODUCTS:

Boots and shoes
Hides and skins
Leather
Other leather products

64.2
68.3
62.3
61.4
57.1

61.6
68.2
62.3
59.8
55.8

59.6
68.1
61.5
56.5
54.9

57.4
66.8
62.4
56.0
55.4

58.2
65.7
59.7
62.0
58.5

60.2
66.0
55.6
61.9
62.1

65.8
52.5
60.9
64.6

60.5
64.1
52.2
56.4
65.4

62.3
62.7
52.4
53.7
67.7

59.5
61.7
52.8
49.4
66.1

55.2
60.9
53.0
49.5
60.1

52.4
60.4
52.4
50.2
54.1

50.9
62.7
54.3
50.5
55.8

53.1
65.9
57.8
50.3
56.6

88.5
46.1
76.5

88.5
44.7
73.4

88.4
40.8
67.2
98.0

88.4
35.7
60.6
97.9

87.5
32.5
58.7
96.4

84.4
33.5
60.0
83.7

84.4
39.3
60.0
82.3

84.4
48.2
63.2
81.5

84.6
49.6
64.1
81.9

84.2
46.1
61.9
81.9

83.8
41.7
59.2
81.9

83.3
43.0
57.1
78.2

83.3
40.9
55.3
77.9

83.2
41.4
55.6
77.9

83.2
45.8
57.2
77.2

70.6
56.4
55.8
36.5
63.1
69.7

69.0
56.2
54.9
33.5
62.7
69.5

68.7
55.1
51.9
31.3
59.7
68.2

68.2
52.9
50.5
29.1
58.3
67.2

67.4
51.0
49.6
27.5
55.0
66.7

66.0
50.0
47.8
26.2
53.6
66.5

66.0
52.6
48.5
29.5
53.4
67.4

67.3
57.9
50.4
32.6
56.7
68.6

62.5
56.2
50.9
30.8
56.5
67.7

62.2
53.6
51.0
29.5
55. 3
67.1

62.5
51.7
49.3
29.3
54.2
66.6

61.9
50.1
48.4
27.0
53.4
66.3

61.2
49.1
48.3
25.6
53.2
66.2

61.3
50.0
47.1
25.5
53.2
66.7

61.4
50.7
47.2
26.3
53.3
67.5

94.8
84.3
80.4
104.8
98.0
38.6

89.9
83.5
80.4
104.4
97.5

85.7
82.7
79.8
103.5
99.1
45.5

85.6
82.0
77.1
106.1
103.0
47.2

85.3
81.8
76.9
105.5
106.3
48.2

84.5
81.6
76.3
105.8
108.3
49.7

86.0
81.3
76.7
104.4
107.0

87.7
81.1
76.7
103.4
107.6
46.7

88.7
81.1
76.7
104.6
104.4
47.4

88.8
80.4
75.6
103.1
100.0
48.2

88.7
80.2
75.3
104.1
96.5
45.0

88.7
79.8
75.3
103.2
96.7
38.7

88.7
79.4
75.2
102.9
96.6
34.3

88.3
79.3
75.2
100.5
96.6
33.1

81.4
78.1
75.2
32.5

85.1
79.3
95.3
52.7

85.0
79.7
95.3
50.5

85.0
80.1
93.8
49.3

84.9
80.0
93.8
48.3

84.9
79.8
93.8
47.5

84.9
77.2
95.3
47.0

84.9
78.7
95.3
48.5

84.9
79.7
92.7
51.6

84.7
80.4
92.7
50.7

84.6
79.4
92.7
49.1

84.5
78.8
93.0
48.3

84.5
78.5
91.3
46.4

83.1
77.3
90.9
46.2

83.1
76.4
90.9
47.9

83.1
75.7
90.4
49.2

79.3
75.3
62.9
75.1
65.8
77.9
80.2

79.3
75.0
61.5
75.4
64.4
79.7
80.6

78.4
75.0
60.0
74.7
64.4
81.7
80.2

77.4
75.0
59.5
73.9
64.4
81.7
78.2

76.1
77.1
57.6
73.3
66.7
81.7
77.6

75.9
77.3
56.9
66.8
67.1
81.7
77.9

75.2
79.0
55.5
67.2
67.1
81.7
78.3

75.4
79.0
56.3
68.2
66.8
81.7
79.9

75.3
79.0
56.6
68.3
67.5
81.7
80.0

75.4
79.0
56.6
68.5
67.5
81.7
80.1

75.1
81.1
56.5
68.1
67.5
81.7
80.1

74.9
81.2
55.9
68.1
62.8
81.7
79.4

75.1
81.8
56.4
68.0
59.4
81.7
78.5

74.9
81.8
57.8
68.4
59.4
81.7
78.4

75.0
81.8
57.9
68.9
59.4
81.7
77.9 •

80.8
60.1
69.8
73.7

80.9
59.7
68.6
73.2

79.7
58.9
70.1
71.1

79.1
58.7
69.4
69.0

78.6
58.3
68.0
69.0

78.9
57.6

79.7
57.0
66.4
68.3

79.8
56.6
63.6
66.9

79.8
55.9
63.4
66.5

79.7
55.0
63.5
65.6

79.7
54.7
63.1
65.6

79.3
54.9
62.3
62.7

79.0
54.8
61.5
62.4

79.3
54.8
61.9
60.1

79.5
54.6
62.9
60.0

75.9
79.5

75.4
79.1

75.4
77.4

75.5
74.1

75.4
74.0

75.1
73.0

74.8
72.6

74.7
72.7

74.7
72.8

74.7
72.7

74.7
72.7

73.5
72.3

72.9
71.9

72.9
71.8

71.7
71.5

39.5
48.2
76.7
8.6
84.4

39.2
52.4
76.8
7.2
84.5

39.2
53.4
76.8
6.6
84.5

39.2
45.9
76.5
6.7
84.6

42.1
76.2
5.8
84.6

40.1
42.2
76.2
6.1
84.5

40.1
47.4
76.3
7.9
84.2

42.7
45.9
75.5
8.2
83.2

44.6
42.7
73.4
7.3
82.1

44.6
40.8
73.4
7.2
81.5

44.6
37.1
73.0
6.8
81.3

44.6
38.2
72.0
6.5
76.8

42.6
40.6
72.1
6.1
73.3

41.3
47.3
72.2
6.3
72.6

37.4
49.5
70.6
7.4
72.7

TEXTILE PRODUCTS:

Clothing
_
Cotton goods
Knit goods
Silk and rayon
Woolen and worsted goods..
Other textile products
F U E L AND LIGHTING MATERIALS:

Anthracite coal
Bituminous coal
Coke..
Electricity
.
Gas...
Petroleum products
METALS AND METAL PRODUCTS:

Agricultural implements
Iron and steel
Motor vehicles.
Nonferrous metals
__
BUILDING MATERIALS:

Brick and tile
Cement.
Lumber
Paint materials
Plumbing and heating
Structural steel
Other building materials

,.

CHEMICALS AND DRUGS:

Chemicals
Drugs and Pharmaceuticals _
Fertilizer materials
Mixed fertilizers
.
HOUSEFURNISHING GOODS:
Furnishings
Furniture
MISCELLANEOUS:
Auto tires and tubes
Cattle feed
Paper and pulp
Rubber, crude
Other miscellaneous

Mar

Back figures.—For indexes of groups see BULLETIN for March 1932, p . 199; indexes of subgroups available at Bureau of Labor Statistics.




Apr.

Mar.

Feb.
FARM PRODUCTS:

Grains
Livestock and poultry
Other farm products.

85.4
82.6
77.7
69.8
64.4
64.7
64.4
64.2
64.3
64.6
64.7
64.1
63.7
63 4
61.2
59.2
58.9
57.8

411

FEDERAL RESERVE BULLETIN

J U N E 1933

CONSTRUCTION CONTRACTS AWARDED, BY TYPES OF CONSTRUCTION
[Value of contracts in millions of dollars; figures for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation]

Commercial

Public works
and public
utilities

Educational

1932

Factories

Residential

Total

1932

1932

Month
1932
January
February
March «
.
April
May
June
July
August
September
October
November
December

1,351.2

CONSTRUCTION

1933

1932

12.0
11.8
16.0
19.1

27.5
24.4
33.2
28.9
25 6
23.1
19.7
20.8
22.8
21 9
19.2
13.0

83.4
52 7
60.0
56.6

84.8
89 0
112.2
121.7
146 2
113 1
128.8
134.0
127.5
107 1
105.3
81.2

Year

1932

1933

3.4
4.4
4.5

4.5
30
2.1
3.5
3.3
6.3
32
1.9
3.3

1933
4.3
2.8
6.4
6.2

43.5

280.1

CONTRACTS AWARDED, BY
DISTRICTS

1933

9.1
10.1
10.6
12.9
12 2
13.0
8.3
18.4
8.8
7.0
6.7
5.7
122.7

5.8
7.6

7.2
6.6

24.1
28.3
29.9
47.3
61.7
50.1
60.0
64.2
68.7
58.5
54.2
43.3

1933

10.7
65
5.5
7.4
3.6
3.4
6.7

6,011
14,453
4,316
4,944
6,376
2,695
6,919
3,266
3,519
2,027
2,047

Total (11 districts)

6,016
15,868
3,289
6,192
4,945
3,959
7,909
4, 890
815
3,165
2,909

56, 573

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

59,959

Total

Mar.

Apr.

265
707
173
212
143
123
432
151
65
140
82
323

5,602
16, 493
5,081
6,008
1,449
1,401
7,982
996
578
1,479
852
3,174

3,820
14,853
3,901
6,529
1,524
1,983
6,617
2,696
1,409
1,359
871
2,938

6,383
30,903
10,568
8,027
8,036
2,080
14, 821
5,600
1,046
4,171
1,733
7,700

2,816

51,097

48, 500

101,069

Mar.

Apr.

196
475
118
182
98
73
258
68
64
121
65
203

179
518
96
160
84
92
280
111
61
79
58
230

1,921

1,948




1932

Apr.

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

1933

232.3

1933
Number
of centers

New York City.
Outside New York City
11,950
21,414 Federal Reserve districts:
Boston
12,129
New York
10,927
Philadelphia
12,897
Cleveland
6,678
Richmond
16, 245
Atlanta
9,502
Chicago
7,689
St. Louis—
5,768
Minneapolis
6,507
Kansas City
Dallas
121, 705
San Francisco
.

Liabilities
1932

1933

9.9

1932

Apr.

Feb.*

Apr.

1
140

12,012
10,612

12,036
10,401

15,558
14,365

11
7
10
13
7
15
21
5
9
15
10
18

1,230
12, 512
1,033
1,003
390
506
2,496
540
402
605
334
1,573

1,136
12,491
1,150
1,103
383
537
2,364
508
313
554
330
1,568

1,735
16,232
1,363
1,400
533
746
3,628
705
443
758
392
1,987

141

22,624

22,437

29,923

Apr.

[Amounts in thousands of dollars; figures reported by Dun and
Bradstreet]

Federal Reserve district

17.3
11.0
11.5

BANK DEBITS

Total

COMMERCIAL FAILURES, BY DISTRICTS

]STumbe r

16.3
11.0
24.2
17.5
37 2
17.6
30.8
21.9
13.5
13.1
19.9

[Debits to individual accounts. In millions of dollars]

1932
Mar

1933

9.2

82.3

Federal Reserve district
Apr.

1.1

7.2
6.4

[Value of contracts in thousands of dollars; figures for 37 States east of
the Rocky Mountains, as reported by the F. W. Dodge Corporation]
1933

1.4
2.2
1.3

9.8

590.3

1932

1933

4.4
10.8

42.7
17.2
17.6
13.6

All other

1

Complete data for March 1933 not available.

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