View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FEDERAL RESERVE
BULLETIN




ISSUED BY THE

FEDERAL RESERVE BOARD
AT WASHINGTON

MARCH, 1919

WASHINGTON
GOVERNMENT PRINTING OFFICE
1919

FEDERAL RESERVE BOARD.
EX OFFICIO MEMBERS.
CARTER GLASS,

Secretary of the Treasury, Chairman.
JOHN SKELTON WILLIAMS,

Comptroller of the Currency.

W. P. G. HARDING, Governor.
ALBERT STRAUSS, Vice Governor.
ADOLPH C. MILLER.
CHARLES S. HAMLIN.

J. A. BRODERICK, Secretary.

GEORGE L. HARRISON, General Counsel.

W. T. CHAPMAN, Assistant Secretary.

H. PARKER WILLIS,

W. M. IMLAY, Fiscal Agent.
M. JACOBSON, Statistician.




Director, Division of Analysis and Research.
F. I. KENT,

Director, Division of Foreign Exchange.




SUBSCRIPTION PRICE OF BULLETIN.
The Federal Reserve Bulletin is distr i piu tet d wit ho u t charge
to member banl<s of the system and to the
oiiTcerTanT^nec^rT
of Federal Reserve Banks; In sending the Bulletin to others the
Board feels that a subscription should be required. It has
accordingly fixed a subscription price of $2 per annum. Single
copies will be sold at 20 cents. Foreign postage should be added
when it will be required. Remittances should be made to the
Federal Reserve Board. Member banks desiring to have the
Bulletin supplied to their officers and directors may have it sent
to not less than ten names at a subscription price of $1 per annum.
No complete sets of the Bulletin for 1915, 1916, or 1917
are available.

TABLE OF CONTENTS.
Page.

Review of the month
Business conditions in February
Special report to the Board on business readjustment in the United States
Statement of Secretary of Treasury before Ways and Means Committee concerning the fifth Liberty loan
Text of fifth Liberty loan act
Amendments to the Federal Reserve Act as passed
Study of credit barometrics, prepared by Mr. Alexander Wall
Rules and regulations adopted by the New York Clearing House Association regarding check collections
Formation of the Industrial Board of the Department of Commence to put into effect a program for the readjustment of prices
Report of committee appointed by the Secretary of the Treasury to investigate conditions in the gold-mining
industry
Ruling of Commissioner of Internal Revenue relative to computation of discount and interest rates for taxation
purposes
Instructions by Comptroller relative to method of reporting certain items on call report
Statement of condition of national banks, issued by the Comptroller
State banks and trust companies admitted to the system during the month
Banks granted authority to accept up to 100 per cent of capital and surplus
Fiduciary powers granted to national banks
Commercial failures reported
Charters issued to national banks during the month
Rulings of the Federal Reserve Board
Law department
Bank transactions during January-February
Index of wholesale prices
Discount and interest rates prevailing in various cities
Physical volume of trade
Gold settlement fund transactions
Bills and war paper discounted during each month in 1918 by all Federal Reserve Banks and by the Federal
Reserve Bank of New York
Chart showing
Discount operations of the Federal Reserve Banks
Resources and liabilities of the Federal Reserve Banks
Federal Reserve note account of the Federal Reserve Banks and agents
Member bank condition statement
Imports and exports of gold and silver
Estimated stock of money in the United States
Discount rates in effect
Operation of the Federal Reserve clearing system
Condition of principal European banks of issue, 1913-1918
Abstract of condition of member banks




IV

189
202
205
218
225
228
229
243
246
248
249
249
250
250
251
251
252
252
253
254
258
261
265
267
274
276
277
278
282
285
287
290
291
292
293
294
296

FEDERAL RESERVE BULLETIN
VOL.

5

MARCH 1, 1919.

No. 3

REVIEW OF THE MONTH.

| of indebtedness, as has just been pointed out,
and before the actual floating of the new loan
The outstanding feature of public finance it may be expected that the total of their
during the month of February advances will have aggregated well toward a
has been the further
develop- billion dollars above the proceeds of the new
ment and announcement of the loan or, what is the same thing, that outstandconditions under which the fifth Liberty loan is ing issues of certificates will have had to be
to be offered to the public. It has been decided met from the proceeds of new issues, as has
to make the actual offering of the loan a little been the case in the past. Meanwhile, the
later than had been originally intended, opening House of Representatives on February 8
the campaign on April 21 and financing the Gov- adopted the conference report on the war
ernment in the meantime by further issues of revenue bill, the Senate taking similar action
short-term certificates of indebtedness. Of on February 12, while the measure was signed
these certificates two issues have been placed and became a law on February 24. This act
on the market during the month of February, is now expected to produce a revenue of at
being announced under dates of February 7 least $6,000,000,000, of which the first payand February 21 and for amounts of ment of substantial amount must be made at
$687,381,500 and $620,578,500, respectively. the time when the returns are filed with the
The total of such certificates of indebtedness of Bureau of Internal Revenue on March 15.
all issues now outstanding in anticipation of These tax contributions will thus be received
the proceeds of the fifth loan is thus in time to be of material assistance in solving
$3,845,678,000. Assuming that the fifth loan the financial problems of the Government,
will amount to about $6,000,000,000, it is thus since the tax receipts will probably antedate
seen that practically two-thirds of the entire by about five to six weeks the first installissue has already been drawn from the banks ments from subscriptions to the fifth loan.
and applied to public purposes. Government
The Secretary of the Treasury on February
expenses have materially declined during the
10 sent to the chairman of
month of February, the total net expenditures
the HoUse Wa S and MeanS
^
for the month being only about $1,200,000,000.
Committee a notable letter in
As an offset to this favorable showing it should, which he set forth plans for the financing of the
however, be remembered that the month con- fifth Government loan. With this letter was
tained only 28 days, so that the reduction is transmitted the draft of an act designed to
not so great, relatively speaking, as it seems. carry into effect the plan of finance which Mr.
Nevertheless, the turn of the tide has undoubt- Glass had thus sketched. The bill as thus proedly set in, and it may be expected that from posed would (1) increase the authorized issue of
this time forward, in the absence of new or bonds from $20,000,000,000 to $25,000,000,000;
unusual appropriations, the monthly outgoes (2) remove the limitation as to interest rate so
of the Government will be less rather than far as regards bonds maturing not more than
more. The banks, however, are already car- I 10 years from the date of issue; (3) authorize
rying a very substantial burden of certificates ! the issue of not to exceed $10,000,000,000 of




189

190

FEDERAL RESERVE BULLETIN".

interest-bearing, noncirculating notes having
maturities from one to five years; (4) authorize
the issue of bonds and notes payable at a
premium; (5) exempt war-savings certificates
from income surtaxes; (6) confer authority
upon the Secretary of the Treasurj^ to determine the exemptions from taxation in respect
to future issues of bonds and notes and to enlarge the exemptions of existing Liberty bonds
in the hands of subscribers for new bonds and
notes; (7) exempt from income surtaxes and
profits taxes all issues of Liberty bonds and
bonds of the War Finance Corporation held
abroad; (8) extend the period for conversion of
4 per cent Liberty bonds on the lines suggested
in the Secretary of the Treasury's letter of
January 15 to the chairman of the House
Ways and Means Committee; (9) create a 2\
per cent cumulative sinking fund for the retirement of the war debt; (10) continue the existing authority for the purchase of obligations
of foreign Governments after the termination
of the war in accordance with the views expressed by Secretary McAdoo by letter and in
his testimony before the Ways and Means
Committee; and (11) extend the authority of
the War Finance Corporation so as to permit
it to make loans in aid of our commerce, thus
supplementing the aid which may be given by
the Treasury on direct loans to foreign Governments and in a measure relieving the
Treasury of demands for such loans.
The Ways and Means Committee of the
House of Representatives has,
however, been disposed to
modify the plan proposed by
the Secretary of the Treasury by the substitution of short-term notes for bonds. This alternative plan accordingly provides for the issue
of several classes or grades of short-term
notes, one bearing a lower rate of interest
and entirety nontaxa,ble, another bearing a
higher rate of interest and fully taxable, with
one or two intermediate grades providing
for rates of interest higher than, that fixed for
the nontaxable notes, but not as high as the
rate established for the taxable issue. These
intermediate issues would be only partially




MARCH 1,1919.

exempt from taxation. The difference between the general proposal to place an issue of
long-term bonds and that which contemplates
the sale of short-term notes of varying maturities and conditions is practically one of banking technique. Short-term securities are not,
on the whole, as well adapted for investment
by private individuals as longer term issues,
while financial custom has usually dictated the
absorption of short-term issues by investment
institutions. Practically, therefore, the alternative plan just outlined would tend toward
the placing of a greater volume of the new
issues definitely in the hands of the banks and
of investment institutions throughout the
country, and less in the hands of private individuals. This is equivalent to saying that it
may probably be more difficult to obtain a
wide distribution of the fifth loan if it be offered
in the form of short-term notes than if it be
sold as longer term bonds. The alternative
plan would also tend to make the whole operation more transitory and temporary in its
working than would the original plan of a bond
issue. It would necessarily imply that the
early maturity of the notes must be looked
forward to and that an extensive refunding
operation must take place when such maturity
arrives. On the whole, the note plan would
therefore operate to increase the inflationary
tendency already noticeable in the present
banking situation and would add, relatively
speaking, to the burden carried by the banks.
Should the commercial banks continue to
retain the notes thus purchased, they would
in effect be retaining upon a longer basis than
had been expected the Government securities
which are now in their hands. If, for example,
the present issues of Treasury certificates
should be paid for through sales of shortterm notes which were largely taken by the
banks, the transaction would amount in practice to the conversion of the certificates which
might be in the hands of the banks into
short-term investment paper which might remain practically where the certificates are now
held. There would be some readjustment or
redistribution of these holdings, but so far as

MARCH 1, 1919.

FEDERAL RESERVE BULLETIN.

191

the banking community as a whole was con- bedrock.7' Mr. Glass further expressed the
cerned, the case would be somewhat the same opinion that a sound and conservative finanas at present. This would mean a continua- cial policy on the part of the Government
tion of the tendency to finance business to a would unquestionably result in " a new period
considerable extent by the use of "war paper 7 ' of great and growing prosperity," believing
and would make it more difficult to transfer that even before the expiration of two months
Government obligations to the strong boxes of from the present date the successful placing of
private investors. Such a result is to be the Victory Liberty loan and the consequent
avoided if possible. On this point the Secre- readjustment of business relations to correspond
tary of the Treasury has said: "Whether they to the conditions thus created might reason[the new securities] be bonds or notes, it is ably be expected.
absolutely essential that the widest possible
As has thus been pointed out by the Secremeasure of distribution be realized."
tary of the Treasury in unmisThe problem of takable terms, an urgent probIn transmitting to the House Ways and
readjustment.
..
* ,
•
T
Means Committee the bill proiem oi busmess readjustment
Tile reton to • v
,-, r
•
£ n
c
normal conditions, vidmg for the financing oi the is that of restoring prices to a stable basis.
fifth loan, the Secretary of the The era of inflated prices maintained by aid
Treasury gave utterance to the following note- of legislation or by Government administraworthy expression of opinion concerning present tive action thus draws to a close, and the aim
conditions as to prices and the extension of to be sought is not that of perpetuating war
bank credit: "The necessary and desirable conditions but that of returning to a stable
contraction of our credit structure has begun footing upon terms and conditions that wouldbe
and will be greatly facilitated by the enactment just and fair to all concerned. There is much
of appropriate legislation to permit the liquida- agreement with the Secretary of the Treasury
tion of claims arising under informal army in his statement that the readjustment must
contracts. Steps have been taken to break begin with a reduction in the cost of living to
the deadlock which had arisen growing out the consumer, sorely tried as the latter has
of the maintenance, nominally at least, of war been by the great inflation of prices and the
prices in certain basic industries. Upon the additions made to his living costs in many
enactment of appropriate legislation to enable directions. "Readjustment77 thus becomes a
the Food Administration to protect the guaran- problem which involves the effective transfer of
ties given by the United States, I am hopeful labor from war work back to peace employment
that it will prove possible to restore the at stable and satisfactory remuneration, the
operation of the law of supply and demand curtailment of costs of production to a point
with respect to foodstuffs with, as I believe, that will enable our manufacturers to satisfy
a consequent reduction in the cost of living. domestic demand and compete favorably with
A period of rising prices and of intense indus- foreigners for the export trade, and the adtrial activity such as we have experienced justment of values generally to one another
during the past four years is always a period upon the new basis created by normalizaof great apparent prosperity, and a period tion of prices and wages. It would be unof falling prices and of the contraction of reasonable for any factor in production to
credits is always a period of depression. The assert that it would not bear its share in this
retardation of the process of readjustment by general process of readjustment. Such readartificial means can only increase the evils in- justment is designed for the common benefit
herent in the situation. Buying will not begin of all participants in industry and the public
and activity will not set in until the community at large. If it be equitably carried out, its
at large is satisfied that prices have reached effects will not tend to favor any particular




192

FEDERAL RESERVE BULLETIN.

class or group in the community, but will
operate, while leaving all in the same relative
position, or at all events in an admittedly
equitable relationship one to another, to increase the general volume of business and the
regularity and smoothness with which the
industrial mechanism moves and functions.
The phase of the problem which has been
receiving most attention during
menf ° r readJust " the past month arid which has
in many ways been productive
of most difficulty, has been the determination
of the workers* share in the process. It was
unavoidable that as a result of the war very
great changes in the character of employment,
as well as in the rate of wages, should occur.
It seemed equally inevitable that in the process
of transition back to a peace basis there should
be similar readjustment of a reverse sort. Not
a few industries have necessarily suspended or
curtailed their operations, because their product
is no longer wanted, or at all events is not
demanded in the same volume as formerly.
The placing of labor in peace industries at remunerative wages, opening to it channels of
occupation and advancement as fast as it is
released either from service in the Array or
from the equally important industrial war
work, can not be instantly effected, but every
endeavor should nevertheless be made to carry
it out as rapidly as conditions will permit.
Striking appreciation of this necessity was
expressed by the President when immediately
upon his return to Washington he summoned
a conference of the governors of the several
States to meet at the White House on March 3.
The purpose of the conference was that of determining a method of business readjustment
which shall be uniform and which shall enlist the
united efforts of the several States. The President's action shows the urgency of the problem
which the country is facing in connection with
the restoration of business to a peace basis.
One way of estimating the degree of our
success in readjustment is that of ascertaining how rapidly and how successfully this
reabsorption of labor is effected. Reports




MARCH 1,1919.

received from Federal Reserve agents and from
various other sources indicate that at least a
reasonable degree of progress m this matter is
being attained. The problem of unemployment, while undoubtedly serious for the time,
does not appear to be growing in magnitude as rapidly as some had predicted. In
the following table derived from the records
of the United States Employment Office is
furnished an approximate estimate of the total
amount of unemployment existing throughout
the country at the date for which the figures
were collected:
Num-

Number

ing.

ing
shortage.

Week
ending—

Estimated

Number cities showNumber
ing industrial relaEsticities
tion. 3 as—
show- mated
ing surplus.
surGood. Unset- Acute.
plus.
tled.
. . .

1918.
Dec. 7
Dec. 14
Dec. 21
Dec. 28

122
122
120
122

29 48,226
30 47,130
25 41,002
26 35,542

16
26
37
41

22,200
30,000
66,350
91,889

91
95
88
91

8
7
7
6

5
4
7
7

1919.
Jan. 4
Jan. 11
Jan. IS
Jan. 25
Feb. 1
Feb. 8
Feb. 15
Feb. 22

121
122
122
122
122
122
122
122

27
22
18
18
16
17
18
18

47 120,589
46 175,951
55 211,700
61 258,332
69 292,831
72 323,685
74 358,797
82 367,130

87
82
83
83
78
75
74
74

9
8
12
14
17
14
15
17

6
8
12
8
10
17
18
16

33,397
20,033
18,644
14,350
11,360
9,313
8,943
8,014

The process of industrial readjustment has
undoubtedly been advanced
Industrial read- considerably during the month
oi February. A notable phase
of it is seen in the reduction of ocean freight
rates, first put into effect by British shipowners
and then extended and carried further by the
United States Shipping Board. Tfee effect of
this readjustment has been to reduce by fully
two-thirds, or in some cases three-fourths, the
extraordinarily high charges which had been
levied during the war. The new ocean rates
have not been reduced to the prewar level,
but they have been brought down well toward
it. In line with this same tendency to rearrangement of charges is the cutting of not
a few basic prices. Thus, for example, prices
of various grades of iron and steel have reached
a distinctly lower stage during the month, pig

MARCH 1,

FEDERAL RESERVE BULLETIN.

1919.

iron selling as low as $29.20 per ton, while
copper, "stabilized" at 26 cents when the war
was at its height, has now receded to a price of
17 cents, with sales at 16 cents or lower, while
other metals have declined in the same or a
greater proportion. It is believed that these
alterations and others like them may be taken
as definite indications that the work of industrial reorganization is under way. Further
indication is found in the circumstance that
during the month of February a genuine
increase in the number of new building enterprises occurred, this increase representing a
substantial percentage of the work in progress
at this time a year ago. Active buying of
some staples for the purpose of providing the
necessary materials of manufacture has also
recommenced, and the effect has in some
directions been to bring about an upward
trend in prices which had previously declined
from the war level. Increase of strictly peace
orders is reported at many factories producing
essential materials or partly manufactured
articles. This is a necessary preliminary to the
restoration of demand in the full sense of the
term at factories producing goods for immediate consumption.
One danger often encountered in periods
of industrial readjustment is
Safeguarding
found in the offer of securities,
capita!.
so called, representing undesirable or at least inopportune investment
proposals. These naturally grow out of the
fact that in time of extensive industrial
reorganization there is much shifting of investments, without due appreciation of the hazards
of the situation. Besides such sincere if
mistaken efforts looking to the placing of new
securities which are honest in intent even
though not well founded in prospect, there are
frequently to be noted many classes of issues
whose projectors have been more desirous of
making profits than of providing a safe security.
The danger is particularly acute in a period
like the present when many persons in the community who have purchased Liberty bonds are
holding them in part on the strength of bor-




106597—10

2

198

rowed funds and only in part on the strength
of savings. To this is added the fact that
others who have paid fully for their investments
feel that now that the country's emergency is
over they may reasonably be permitted to exchange their holdings for more remunerative
securities. Since, in many cases, Liberty bonds
are held by persons who have not in the past
had much experience in modern forms of investment, the danger in the situation may become
acute through the exchange of Government
securities of undoubted value for securities of
doubtful solidity bearing promise of large returns. From the broader standpoint the effect
of this process of gathering Liberty bonds into
the hands of those who wish to make a profit
is that of tending to throw the securities upon
the market at a time when every effort should
be made to bring about their absorption and
retention by bona fide investors of the country
as a whole. It was to meet this situation that
the Capital Issues Committee prepared a bill
which, with the approval of the Secretary of
the Treasury, was recommended to Congress
for adoption.
It is now becoming more and more evident
, that an important rphase of
Foreign trade
... J
f
, ,
1,
outlook.
readjustment must be sought
in connection with our foreign
trade. Opinion as to this branch of business
has undergone some change during the past
month. Up to the opening of February it had
still been hoped by many that there would be a
swift revival of activity and that our manufactured products would be exported in something approaching the volume developed during
the war. Several influences have intervened
to prevent such a development. Important
among these is the unsatisfactory position of
the exchanges, making it imperatively necessary for some foreign countries to devote their
efforts to improving the exchanges by keeping
down the amount of their current foreign indebtedness. Moreover, it has appeared that no
inconsiderable part of the foreign-trade activity
of the year 1918 was directly due to the fact
that the United States was financing this ex-

194

FEDERAL RESERVE BULLETIN.

port movement at low rates of interest through
the advances made by the Treasury Department to the several foreign Governments.
That these will not be continued upon their
former level is, of course, an inevitable incident
of our change from a war to a peace basis, and
with this change in Treasury policy some
change in the activity of those branches of export trade which were dependent upon assistance of this kind is unavoidable. Finally, and
perhaps more important than the other factors,
is the circumstance that many of the industrial
districts of Europe are proving far better able
than had been expected to supply the wants of
buyers in the countries which have suffered
most and are already beginning to take care of
the trade of these regions. A further factor is the circumstance that no settled policy
has as yet been adopted by the Government with respect to financing purchases
in our market on long credit. The unstable peace situation is also probably to be
regarded as a factor of some consequence. It
is not strange, therefore, that our exports of
steel and other metals and of basic materials
of many kinds have fallen short of the more
optimistic expectations that had been entertained and expressed. Our export figures for
1918 loom large and those for the month of
January attain in the aggregate record proportions; but they do not consist in the expected
kinds of manufactured goods. Even with reference to that portion of our export trade which
consists of food products, it is to be noted that
the situation has not yet reached final adjustment. While we have been endeavoring to
maintain the fixed price of $2.26 per bushel for
wheat Argentina and Australia have been exporting their available surpluses of the grain
at a very much lower figure, the price in Australia, as reported DV cable, being about $1.37
for some large shipments, although differences
in transportation cost tend to equalize delivery
prices. This has naturally operated to curtail
the demand for our wheat abroad, and while
that demand may be increased at a later date
after the wheat surpluses of the other parts of




MARCH 1,1919.

the world have been partially or wholly exhausted, it is still uncertain at what price our
available surplus Mali be disposed of. The export trade in grain must, therefore, adjust itself
to a basis of tolerably close competition,
which ma}" be expected to result in fixing and
maintaining a general level of prices decidedly
lower than that with which we emerged from
the war—how low can not as yet be stated. It
is because of the perception of the unlooked-for
difficulties in our export business that the Secretary of the Treasury in his letter to the Ways
and Means Committee made recommendation
that authority be granted to the War Finance
Corporation for the making of loans "in aid of
our commerce/7 the purpose being to assist in
the continuous exportation of our available
supply of goods. A special reason mentioned
by the Secretary of the Treasury for the grant
of this authority is found in the fact that the
Government is possessed of large holdings of
property of various kinds in European countries of which it wishes to dispose, and this may
be effected either through advances on the part
of the Treasury which will result in transferring
the goods to European owners against the
pledge of their Governments, or may be effected
by advances obtained from the War Finance
Corporation for the purpose of expediting the
movement of the goods into private hands.
Restoration of something approximating a
normal trade situation be°f t ween countries is indeedaninTf ^ade.
dispensable element in the process of world readjustment. Without such
restoration it will prove impossible to resume
free movements of specie and to bring about
an organization of foreign trade upon a basis
that may be regarded as enduring. In the long
run, exports and imports, including services,
gold, and other items, taking one country as
compared with the remainder of the world,
must tend to equalize themselves. When they
do not the "adverse" balance must be carried
as an investment or advance by the country
which has exported the excess of goods; in
other words, must be carried on credit. During

MARCH 1,

1919.

FEDERAL RESERVE BULLETIN.

the war there have been great changes in the
debtor and creditor relationships of most
countries, and the United States has assumed
the position of a large creditor, notwithstanding that in the past it has invariably occupied
that of a debtor. There is a limit to the extent
to which it is ever economically advantageous
for one country thus to become indebted to
another, since it must annually liquidate the
interest on the advances made to it or else issue
new securities, a process which in itself speedily
reaches its limit unless the growth of indebtedness results in a commmensurate increase in
productive and paying power. These facts
underlie the liexchange situation" to which
reference is frequently made, and do much
to explain the restricting of the movement
of goods into foreign markets.
Various
countries are indebted to the United States,
and while in some instances they themselves
have claims upon other countries, the claims
are not in such condition as to make either
principal or interest available for liquidating
indebtedness to us, either in cash or in goods.
Such a country must therefore expect to continue to occupy a dual position, its status as a
creditor almost necessarily signifying continuance in like manner as debtor. Action in
attempting to restrict the movement of merchandise, such as was initiated by Great Britain
in the adoption of a so-called restriction policy,
would not perhaps have been thought necessary
were it not for the difficulties of their exchange
position. Trade with the Central Powers has
not yet been opened, but so soon as it is, the
problem of payment for their importations will
become serious. Germany and Austria, it is
true, have but little foreign war indebtedness,
but other nations are hardly in position to
extend to them, even if disposed, verj large
advances of credit. This condition of affairs
will tend to make the scope of their foreign
commerce dependent to a considerable degree
upon the extent to which they can finance
themselves through regular commercial and
financial channels abroad. Thus, while government restrictions upon the movement and
production of goods are in many respects being




195

materially modified, especially domestically, it
remains true that the artificial distribution of
indebtedness due to the loans of the war period
will render it difficult to set international trade
free of the restrictions which war has imposed.
Even when such freedom has been obtained
the dictates of prudence and self-restraint will
intervene to prevent the countries which now
owe most, either to their own people or to
foreigners, from buying as they otherwise
would. This is merely another way of saying
that international, like domestic, credit is already greatly overstrained, and that it will be
the part of wisdom not to subject it to further
severe burdens until it has,had time to regain
some measure of normality.
One feature of readjustment during the
month of February has been
the
downward tendency in
prices. Sauerbeck's
index
number for February- shows a recession in England from the high point of 197, reached just
before the armistice, to about 190, and such
data as can be obtained for wages indicate a
tendency on the part of the remuneration of
labor to settle to lower levels, but in some
cases to make its appearance in the abolition
of overtime, the shorter hours work being
paid at the normal or standard rate in each
case. Elsewhere labor has been disposed to
accept moderate readjustment of schedules of
payment that were admittedly above normal.
An automatic readjustment has been effected
in those cases where large corporations have
been paying wages in part upon a profitsharing basis or upon a basis which regulated
the return to the laborer in accord with the
amount of net earnings realized. In these instances the reduction of net earnings caused
by heavier taxation and by lower prices are
reflected in part upon the workers who carry
them in the form of loss of the higher earnings
which would have been realized had industry
been more profitable than was actually the
case. Neither wages nor prices have as yet
shown any extensive or marked recession, but
such evidence as is available indicates a tendency of both in the same direction. This

196

FEDERAL RESERVE BULLETIN,

MARCH 1,193

9.

tendency is also observable in foreign coun- in each branch of business and the developtries, where, as in the United States, some ment of principles which should apply to and
"unrest" on the part of labor is reported in govern the solution of the problems as thus
consequence of the failure to determine the recognized. It is believed that these prinbasis on which wages and profits shall be ad- ciples and views will be readily understood by
justed to the changing price level. The the majority of those called into conference,
Board's reports of business conditions in vari- j and that the discussion of them will without
ous parts of the country point to the fact that much delay lead to general acceptance. One
the process of wage readjustment is proving problem to be dealt with by the board will be
easier here than abroad, partly due to the that of bringing about an equitable disposal of
stronger condition of industry and the fact the great volume of commodities now held by
that there is a much broader market for goods the Government for later sale. Such comin the United States than exists anywhere else modities will be placed upon the market in a
at the present time. Buying power on the way that will not interfere with the orderly
part of the mass of population is at a far production and marketing of goods. The
higher point in the United States than in work of this industrial board will undoubtedly
European countries. The underlying prob- be modified to some extent as necessities for
lems of the situation are, however, the same the program worked out at the conference
everywhere. It is impossible to continue busi- between the President and the governors of
ness indefinitely upon the lower price schedule the States seem to require.
with expenses of production the same as that
The month of January has witnessed no mawhich had developed out of the higher price
terial change in the general
Interest and
basis.
rates of interest and discount
discount rates.
Immediately before the return of the Presiprevailing at Federal Reserve
dent it was made known that, Banks. The reasons for the maintenance of
The Industrial n a Y i n g received approval from stable conditions are the same as have already
the President of certain plans been set forth in former numbers of the FEDwhich it had proposed for the readjustment of ERAL RESERVE BULLETIN and grow out of the
prices, "The Industrial Board of the Depart- problems of financing the needs of the Government of Commerce" had been formed for the ment, which are already well known. Compurpose of examining into the business situation mercial rates of discount, as shown by the reguand suggesting such remedies as may be thought lar reports of the Board, have been very nearly
expedient. The general conditions which have uniform throughout the country, although the
led to the creation of this board are found in tendency has been toward rather higher rates
the stagnation of business and industrial .ac- than have heretofore existed. The slight uptivity and the prevalence of a very high level ward movement is due to the gradual developof prices and living costs, while it is believed ment of demand for means of financing new
that there exists a large but withheld buying enterprises. There is some evidence that
power which is not being applied to the em- liquidation is in process. This is entirely due
ployment of labor or the purchase of commodi- to natural causes and not to a change in the
ties. The object of the new board is therefore discount policy of Federal Reserve Banks
that of ascertaining what remedies for exist- There have been no noteworthy changes in
ing conditions may be applied through con- Federal Reserve Bank rates. Such liquidasultation with leaders of industry and through tion as has taken place at Federal Reserve
the development of principles and methods Banks is not to be regarded as resulting from
suited to the requirements of the case. At change in the Board's discount policy, that
such conferences it is intended to discuss with policy being what it has been throughout the
these leaders of industry the general situation recent period of heavy Government financing.




The heavy return movement of Federal
Reserve notes occurring during January and
amounting in the aggregate to about $235,000,000 has given way to a slight outflow in
the month of February, indicating the selfregulating character of Federal Reserve note
circulation in the existing circumstances. The
heavy return flow noted above is in part to
be explained by the natural liquidation which
normally occurs at the turn of the year but in
larger measure was probably occasioned by
the return to banking channels of the considerable volume of notes that there is reason
to believe were hoarded during the war.
It is gratifying to observe that further progress toward the development
Banking condi-

tions abroad.

*

•

i

-i •

,

(1

of genuine banking strength
has been made during the past
month. In the FEDERAL RESERVE BULLETIN
for February reference was made to the increased strength of the Bank of England. The
percentage of reserve as figured by that institution, which had risen to about 20.13 per cent
at the close of January, had still further increased to 20.58 per cent on February 20. Not
only- the restriction of foreign trade, but the
continuous effort to eliminate war paper is
having its effect upon the credit situation in
Great Britain. Considerable reduction in the
outstanding circulation of notes probably indicates a condition parallel to that existing in
the United States during the period of note reduction through which we have just been passing. In France the outstanding note circulation
shovrs no sign of decline, the reserve on hand
now standing at 10.81 per cent, or somewhat
below the situation at the close of 1918, when it
stood at 11.29 per cent. The situation in the
Bank of France shows that conditions in that
country are more nearly static than they
are in Great Britain, the power to contract
inflation and reduce loans being less positive
than is true across the channel. The foreign
trade of France has of course suffered very
much more than has that of Great Britain, due
to the fact that some of her choicest industrial




197

FEDEEAL RESERVE BULLETIN.

MARCH 1, 1919.

districts were largely or wholly destroyed as a
result of war. Restoration of banking soundness is, however, being approached through
elimination of consumption and consequently
through relative cessation of purchases. France
will approximate to her prewar conditions by a
route quite different from that of Great Britain—that, namely, of domestic saving and
economy, accompanied probably by slower
restoration of foreign trade than will be true
of her neighbor. Of the Central Powers too
little is as yet known to say with certainty what
direction is being taken by banking and credit
conditions. The situation in Germany and
Austria will be considerably modified when they
are again placed in immediate communication
with the outside world. Meanwhile, it may be
generally said that throughout the European
countries there is much evidence of concern as
to the parity of inflated banking and currency,
with a disposition to limit foreign trade to what
is necessary or "essential" to industry, getback to a basis of adequate reserve relationships, and thus to approach the time when international trade can be entirely relieved of i£s
restrictions. This is genuine progress toward
true readjustment, even though in some cases
it may seem to be of a negative character.
The following figures form the latest available
data with reference to banking reserve and
liabilities in some of the principal countries:
[In thousands of dollars.]
i Ratio of
Date

hind

t£n | to gold

and silver
on hand.
Per cent.

Bank of England | Feb. 5,1919
Bank of France.. ; Feb. 6,1919
German Reichs- !
bank
: Dec. 31,1918
A astro- Hunga- '
do
rian Bank.
\

543,116 3,160,600:35.280,700!
64,59811,446,806;48;7l3,207|

6.43

.0064

1 Bank of England data.
2 Currency note account.
8
Exclusive of war lean bank notes (Darlehenskassenscheine) in circulation.
* Including SI,502,954,000 of interest-bearing scrip (Kassenscheine)
issued to the Government and payable, after 3 and 6 months,presumably in banknotes.

198

FEDERAL, RESERVE BULLETIN.

The growing interest in the possibility of an
international gold clearance
Gold situation.
fund, especially since the report
of the Federal Reserve Board for the year 1918,
recalls earlier efforts in this direction made by
the International High Commission. This body,
established by the Governments of American
Republics, and consisting of national sections,
each of nine jurists or financiers with the Minister of Finance as chairman, had from the outset the task of bringing about more stable financial relations between Latin America and the
United States, especially through the establishment of the gold standard, or gold exchange
standard wherever not in effect. Study of this
problem led to the conviction that two steps
would greatly facilitate the eventual extension
of substantial assistance by the United States
to those Republics of Latin America which
were in need of help to set their currency systems on a firm basis, first, the use of an international clearance fund, and, secondly, the use
of a money account. The executive council of
the commission prepared in the early summer
of 1916 a draft of a convention, with a view to
provide for the inviolability of such a'fund. The
draft and explanatory memoranda were in due
course submitted to the Ministers of Finance
and to the diplomatic officers of the Republics
participating in the work of the commission.
After earful consideration the governments of
seven countries have expressed a willingness to
conclude the convention with the United
States, and the matter is the subject of serious
study in other countries.
Since the last issue of the BULLETIN, in
which were published summaries of the work
of other committees which had studied conditions in the gold-mining industry, the report of
the committee appointed by Secretary of the
Treasury McAdoo to make an investigation,
with a view to definitely ascertaining the difficulties confronting gold production and submitting suggestions of methods of relief, has
filed a report with the Secretary of the Treasury
under date of February 11, printed elsewhere
in this issue.




MARCH 1,1919.

During the month ending February 10 the
net outward movement of gold
Gold imports w a g $2,125,000, as compared
and exports.

....

.

,

t

*

with a net outward movement
of $93,000 for the month ending January 10.
Gold imports for the month amounting to
$1,925,000 came largely from Canada, Mexico,
and Nicaragua, while gold exports totaling
$4,050,000 were consigned chiefly to Colombia,
Venezuela, and Mexico.
The gain in the country's stock of gold since
August 1, 1914, was $1,069,451,000 as maybe
seen from the following exhibit:
[In thousands of dollars; i. e., 000 omitted.]

Imports. Exports.

Aug. 1 to Dec. 31,1914
Jan. 1 to Dec. 31,1915
Jan. 1 to Dec. 31,1916
Jan. 1 to Dec. 31,1917
Jan. 1 to Dec. 31,1918
Jan. l t o F c b . 10,1919

imports
over
exports.

1

104,972
31,426
155,793
372,171
40,848
4,591

181,719
420,529
529,952
181,542
21,102
11,955

jl,779,252

Total

! 23,253
1 451,955
1 685,745
! 553,713
i 61,950
1 2,636

709,801

1,069,451

Excess of exports over imports.

Issues of two additional series of Treasury
Operations of certificates aggregating over
the Federal Re- 1,300 million dollars and the
serve Banks.
redemption by the Government
on January 30 of the outstanding balance of
certificates of the October 1, 1918, series are the
principal Government operations affecting the
condition of the Federal Reserve Banks during
the period between January 24 and February
20. Holdings of war paper, which declined
nearly 140 millions during the week ending
January 31, show an increase of over 245 millions for the two weeks following, the total of
1,603 millions held on February 14 being the
largest ever reported. Since then a decrease of
6.5 millions is shown, the final figures for February 20 indicating a net gain of less than 100 millions for the four weeks under review. All the
banks, except those at St. Louis and Minneapolis, report increases in the amounts of war
paper on hand. For the New York bank the
net increase for the period was 43.5 millions, for

MARCH 1,1919.

the Boston bank 20.2 millions, and for the
Chicago bank 16.6 millions. Other discounts
on hand declined from 264.5 to 222 millions.
As a result the share of war paper in the total
discounts on hand shows a rise from 85 to about
88 per cent. For the eastern banks this ratio
is in excess of 90 per cent.
Aggregate holdings of acceptances show a
further decline from 284.5 to 269.9 millions.
Moreover, interbank sales have caused some
redistribution in the holdings of this class of
paper, with the result that both Cleveland and
San Francisco report larger amounts of acceptances on hand than New York.
No appreciable change is shown in the
amounts of Government securities held, by
far the larger share of these obligations representing 1-year 2 per cent certificates deposited
with the Treasury to secure Federal Reserve
bank notes in circulation. Total earning assets
increased 41.1 millions, and on February 21
stood at 2,263.6 millions.
For the period under review the banks increased their gold holdings from 2,101.3 to
2,125 millions and their net deposits from
1,679.5 to 1,730.8 millions. There was no
further increase in the volume of Federal
Reserve notes in circulation, increases in
circulation during the first two weeks in
February being followed by a slight decline
for the last w^eek under review. Aggregate
liabilities of the banks on Federal Reserve
bank notes in circulation show a slow though
continuous increase from 126.8 to 133.5 millions. No material change in the banks'
reserve percentage is shown, the gain in
reserves proving sufficient to counterbalance
the increase in deposit liabilities. On February 21 this percentage stood at 52.2, as
against 52.3 per cent on January 21.
In the following table are shown the changes
between January 24 and February 20, 1919,
in the total discounted and purchased bills
held by each of the Federal Reserve Banks,
as well as changes between the two dates in
the holdings of other classes of investments:




199

FEDERAL. RESERVE BULLETIN,

[000 omitted.]
Federal Reserve Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

Jan.24.

Feb. 20.

Net in- | Net decrease, j crease.

S144.866
803,942
190,454
144,552
103,289
89,134
204,223
67,791
39,760
85,284
51,327
121,950

$158,022
795,680
191,644
164,197
103,042
83,185
206,071
71,594
51,016
81,178
52,718
130,027

$13,156

Total
2,046,572 2,088,374
United States long-term securities
28,571
28,095
United States short-term securities
147,398
147,123
All other earning assets
4
4
Total investments held... 2,222,545 2,263,596

1,190
19,645
1,848
3,803
11,256

$8,262
247
5,949

4,106
1,391
8,077
41,802
476
275
41,051

For the period between January 17 and February 14 weekly reports of
Of
iD^iSta.
member b a n k s i n a b o u t 100
selected cities, including all the
cities in which Federal Reserve Banks and their
branches are located, indicate a reduction from
825.6 to 723.7 millions in their holdings of
United States bonds, other than circulation
bonds, and an increase from 1,467 to 1,743
millions in their holdings of Treasury certificates. Decreases in United States bonds on
hand apparently reflect to some extent amounts
placed with subscribing customers upon receipt
of partial payments. Since October 25 of the
past year when a maximum of 1,018.4 millions
of these bonds were shown among the assets of
reporting banks, the total has declined by 294.7
millions. Meanwhile the amount of Treasury
certificates held by reporting banks, as the
result of the successive issues of these certificates both in anticipation of the fifth war
loan and tax payments, has gone up 793.6
millions, indicating a net increase of direct
investments in Government war securities of
slightly less than 500 millions.
Loans secured by United States war obligations show a decrease for the four weeks from
1,182.7 to 1,170 millions. Since October 25,
1918, but little change in this item is noted.
Aggregate holdings of United States war securi-

200

FEDERAL RESERVE BULLETIN.

ties and war paper on February 14 were 3,636.7
millions and constituted 26 per cent of the total
loans and investments of all reporting banks,
as against 25.1 per cent shown four weeks earlier
and 22.3 per cent on October 25, the Friday
following the closing of the fourth war loan.
On February 14 member banks in New York
City report 1,593.9 millions of United States
war securities and war paper, or 43.8 per cent
of the total shown for all reporting banks, as
against 45.3 per cent shown four weeks earlier.
Member banks in all the 12 Federal .Reserve
cities show corresponding holdings of 2,546.8
millions, or about 70 per cent of the total for
all reporting banks, as against 71 per cent
four weeks previous.
During the period under review Government
deposits fluctuated between 489.4 millions on
January 24 and 693.7 millions the following
week, the February 14 total of 644.5 millions being 14.5 millions below the corresponding January 17 figure. Larger concentration of these deposits in New York City is noticed, member
banks in that city reporting an increase from
225.4 to 307.4 millions. Other demand deposits
show a continuous decline to February 7 from
10,080 to 9,787 millions. At the end of the following week the total stood at 9,911.7 millions,
a decline of 168.3 millions since January 17,
largely at the New York banks. Time deposits
show an increase from 1,605 to 1,624 millions.
Reserve balances with the Federal Reserve
Banks at the end of the four weeks were uniformly lower than at the beginning of the
period. For all reporting banks a decrease
from 1,298.9 to 1,255.4 millions is shown, while
for the banks in the 12 Federal Reserve cities
an even larger decline from 979.4 to 929.2 millions is noted. A similar decline is shown for
cash in vault, the February 14 total of 361.1
millions being 25.5 millions less than the total
reported at the close of the initial week.
The stated quarterly meeting of the Federal
Advisory Council occurred on
February 17 and 18, in Washington, all members being present. Several important topics of discussion
were presented and discussed by the council.




MARCH 1,1919.

A general and growing appreciation of the usefulness of the Federal Reserve sj^stem had been
found by the members to exist in the several
districts, and it was reported that the system
enjoyed a high degree of confidence not only
for what it had already accomplished but as a
basis for sound banking in time of peace.
Among specific suggestions made by the
council were the recommendation that collections be made hj the most direct and
expeditious route, that member banks7 collateral notes be allowed to run for 90 days
instead of for 15 days only during the further
continuance of Government war financing, and
that immediate credit be given in members'
reserve accounts for bank acceptances paid to
any Federal Reserve Bank. The council reported that the acceptance market is developing satisfactorily notwithstanding the retardation due to the short-time financing of the
Government. In this same connection it was
suggested that section 5202 of the national
bank act be amended so as to exclude from
its prohibitions the liability created by national
banks as an indorser on bills owned by the
bank and rediscounted at home or abroad.
General discussion of the conditions under
which Government's obligations could best
be marketed resulted in expressions of opinion
on various topics relating to the technique of
the issue as well as to the conditions under
which paper secured by Government obligations ma}^ be rediscounted at Federal Reserve
Banks. As to this point the council said
"Until the Liberty bonds already issued and
the Victory bonds to be issued are distributed
among permanent investors and paid for by
them, and until the banks are relieved of the
obligation they are under to carry such large
lines of them for their patriotic customers who
have gone in debt for them, the discount
rates at the Federal Reserve Banks should
continue to show some preference on loans
covered by Government securities/'
During the month of January several important changes in personnel have
sonneL gGS ** **' occurred in the Federal Reserve
system. In the Advisory Council Mr. J. P. Morgan has been succeeded by Mr.

FEDEKAL EESERVE BULLETIN".

MARCH 1, 1919.

A. B. Hepburn for the second district; Mr. J.
W. Norwood has been succeeded by Mr. Joseph
G. Brown for the fifth district; Mr. J. R. Mitchell has been succeeded by Mr. C. T. Jaffray for
the ninth district; and Mr. Herbert Fleishhacker has been succeeded by Mr. A. L. Mills
for the twelfth district. Governor Rolla Wells,
of the Federal Reserve Bank of St. Louis, has
been succeeded by Mr. David C. Biggs. In the
Atlanta district, Federal Reserve Agent M. B.
Wellborn has succeeded Mr. Jos. A. McCord as
governor of the Federal Reserve Bank of Atlanta, while Mr. McCord has become Federal
Reserve agent in place of Mr. Wellborn. Mr.




108597—19

3

201

Louis C. Adelson, formerly assistant secretary
of the Federal Reserve Board, has become
deputy governor of the Federal Reserve Bank
of Atlanta. In the New York district, Mr. R.
M. Gidney, formerly assistant Federal Reserve
agent, has become manager of the new branch
of the Federal Reserve Bank of New York at
Buffalo. Mr. George L. Harrison, formerly
assistant counsel of the Federal Reserve Board,
has been appointed general counsel of the
Board in place of General Counsel Milton
C. Elliott, who has resigned to enter private
practice. Mr. Elliott continues as consulting
counsel to the Federal Reserve Board.

202

FEDEBAL KESERVE BULLETIN.

MARCH 1,1910.

BUSINESS CONDITIONS IN FEBRUARY, 1919.
While progress in the readjustment of business to peace conditions is reported by the
Board's representatives in the several districts
to have been made during the month of February, and while the advance in different parts
of the country is reported generally gratifying,
some uneasiness is expressed by the public at
large because the progress is not more rapid.
Although the readjustment process is still far
from having reached completion, there is much
evidence that the factors which must be reckoned with in bringing about the desired
reorganization of business and financial relationships are cooperating in a fairly satisfactory way. "Although business is by no
means on a settled basis/' reports the First
Federal Reserve District, "confidence is apparently returning." In the Third District the
process of readjustment "has made some progress/' while elsewhere in spite of some difficult
conditions approach to a settled status has
been distinctly marked. In the Seventh District it is observed that "both labor and capital are cooperating to continue the orderly
readjustment now under way." This general
situation establishes a favorable basis upon
which to build the processes of modification
and alteration that are now at work in various
fields of effort.
Labor and employment conditions ever
since the signing of the armistice with Germany have been regarded as constituting
the fundamental problem of business readjustment and coupled with them the reintroduction of a normal footing for prices.
Reports as to labor unemployment have been
numerous in the press, but the reports of
Federal Reserve agents show that there has
probably thus far been overanxiety and exaggeration with respect to this matter. From
several of the manufacturing districts of the
Federal Reserve system it is reported that
labor conditions are far from satisfactory, and
that there is considerable unemployment; but
it is also noted that the condition does not




seem to have grown worse during February.
The process of absorbing unemployed labor is
certainly proceeding with some degree of success. While the existence of unemployment is
admitted by most of the Federal Reserve
agents, it appears that the surplus of labor is
smallest in the South and Southwest, while
in only a very few districts is it reported
that serious labor controversies are in progress.
As to wages and their readjustment to the
new conditions, the trend is by no means
uniform or decisive. In the South and Southwest there are no indications of any reduction
in the wage scale, while in the North and East
employees are demanding higher wages, notwithstanding the existence of considerable
unemployment. Some revisions of wage scales
are reported from the Middle West, but there
is as yet no general revision of wages downward, although there are indications of a
tendency to let wages settle to a definite level
which shall without question be higher than
that existing before the war. There has been
a tendency to provide labor for a greater number of persons by eliminating overtime or
establishing short time. The connection between wages, prices, and costs is well recognized, and it is the view of manufacturers in
general that wages should not go down faster
than prices. Such revisions as are occurring,
therefore, are frequently parallel, wages and
prices receding in like measure. The opposition of labor to any reduction in wages is very
general and extremely positive, but in some
cases it is accompanied by the modifying
statement that cuts in wa^es must not go
further than changes in costs of living.
The price question is inevitably of commanding importance, not only to the employee
but also to the community as a whole. The
SecretaTy of the Treasury has called attention
in his letter to the chairman of the Ways and
Means Committee to the necessity of reducing
costs of living. Alterations have, however,
proceeded only very slowly. Sauerbeck's in-

MARCH 1,

1919.

FEDERAL RESERVE BULLETIN.

dex number for British prices shows up to February 15 a recession of 5-^ points from the
peak of 197, reached toward the close of the war.
The general index number of the Bureau of
Labor Statistics for the period ending January
31 has declined four points from the peak of
206, reached during November and December,
1918. The Board's analysis of the prices furnished by the Bureau of Labor shows that a
recession of about three points has occurred in
the group of raw materials, where the index
number for the period ending January 31 declined from 198 to 195. The index numbers
for all of the subgroups included under the
head of raw materials have likewise declined.
In the subgroup of mineral products the
reduction has been from 182 to 177, largely
due to the decided cut in the price of copper.
During the month the market for metals generally has shown a sharp decline with decided
weakness at the end of the month. Lead,
zinc, and copper have shown marked recessions, while grains, except wheat, have likewise fallen off sharply. Prices in iron and steel
are largely nominal, although tentatively quoted
the same as at the opening of the year, and the
policy of the trade is to leave the initiative as to
price concessions to the consumer. Firm bids
for desirable business will probably be met by
most producers.
In manufacturing, the problems of the readjustment situation are naturally more obvious
than elsewhere. One of the most difficult
problems is presented by the textile industry.
In District No. 1 curtailment of woolen-mill
production is still in progress, while in District
No. 3 readjustment is still proceeding and
values are unsettled. The cotton industry is
even more directly affected. In New England
the cotton market is at a complete standstill,
so far as the raw material is concerned, while
the mills that are operating are running only a
few days each week, and profits have been reduced to a minimum or have disappeared. In
the Third District demand for yarns has
reached a minimum figure and prices have
declined sharply. Spot-cotton business is in




203

a complete state of stagnation, while it is
estimated that the mills in both North and
South have about a three months' supply
of raw cotton still on hand. Cancellations
have occurred in various lines, while in a
number of specialties, such as underwear,
manufacturers continue to suffer from slack
business.
In leather and shoes, raw material is to-day
higher than when the armistice was signed, and
by some it is predicted that the price of shoes
will advance rather than decline. This has led
some manufacturers to continue production,
even though they have no orders. Leather
dealers in the Third District are reported to be
optimistic.
Iron and steel production has shown no increase in activity and the demand for steel is
insufficient to take the output of the mills,
while equipment establishments are working
mostly on old orders. In the Pittsburgh district there has been a decrease of business, while
in Youngstown operations are about 60 per cent
of normal. The division of the steel industry
which is affiliated with the railroads is practically suspended. Unfilled orders of the United
States Steel Corporation show a continuous decline from 7,379,152 tons at the close of December to 6,684,268 tons at the close of January,
the index numbers being 140 and 127, respectively, while pig-iron production shows a decline from 3,433,617 tons in December to
3,302,260 tons in January, the index numbers,
respectively, being 148 and 143. Steel ingot
production has increased from 2,992,291 tons
to 3,082,427 tons, an increase of four points
from 125 to 129. In view of this situation it
is notable that some iron and steel men predict
a period of unusual prosperity after a somewhat
further readjustment has occurred. In coal,
demand has been relatively light, due to the
mild winter, and consuming plants are well
equipped. This has enabled miners in some
districts to moderate their activity, and from
Ohio and Pennsylvania it is reported that some
of the larger mines are operating only from one
to three days per week.

204.

FEDERAL RESERVE BULLETIN.

In metals some drastic revisions of conditions
have occurred. Prices of lead, zinc, copper,
and other nonferrous metals have fallen in a
notable way, and the market has shown weakness. Gold mining lias improved in the Colorado district. Petroleum, while threatened
with, a decline in crude, shows steady progress
in the development of new wells and in the output. The production of copper during January
shows curtailment, while mining earnings were
poor and prices shrank in some cases to 16
cents per pound. The large accumulation of
copper which occurred during the latter months
of the war has provided the larger mines with
the means of meeting the demand for many
months to come.
Agriculturally the outlook throughout the
country is bright. From the Southern States
comes the report that the prospects indicate a
large cotton acreage, so much so that a determined effort has been organized for the purpose
of holding of? the market as much of last year's
crop as possible and for the curtailment of the
planted area by one-third. With reference to
wheat, the Ninth District reports that the midwinter output has been helped by weather conditions, and that preparations are being made
with a view to a very large crop. The Pacific
Coast reports that stored stocks of grain are
beginning to move slowly, and that the general
outlook is excellent, the soil being in good condition, while combined acreage of winter and
spring wheat may attain record proportions.
Flour milling in the Ninth District, however, is
suffering from lack of orders, due in part to the
falling off in exports resulting from the shifting
of foreign demand to the Argentine and Australian product. In the Tenth District there has
been a spurt in activity during the first six
weeks of 1919. The January production of
wheat flour for the country at large, as reported
to the United States Food Administration, was
12,994,000 barrels, as compared with 11,759,000
barrels in December. Cereals other than wheat
have fallen in price, and in consequence some
reduction in acreage may occur. Citrus fruit
crops have been damaged by unfavorable




MARCH 1,1919.

weather in December and January, but the entire yield is likely to develop favorably. Complete returns for 1918 are now available as to
prunes, raisins, and the like, the raisin crop of
1918 being the largest ever recorded, with a
total value close to $19,000,000. From the
Southeast it is reported that fruit and truck crops
have been unusually remunerative, the movement of oranges and grapefruit being very large.
In live stock excellent crop prospects and
improved conditions are leading to large expansion of business by stockmen. The Tenth
District reports unusually heavy receipts
of cattle, fat steers ranging up to $18.40 per
hundred pounds, as compared with 813.50 a
year ago. Receipts of hogs during January
at Kansas City were 535,000 head, or 50 per
cent more than in January, 1918, with, prices
at a maximum, Eeceipts at 15 principal
markets were considerably heavier than a year
ago with respect to all food animals. The
receipts of hogs were especially large, the
figures standing at 4,603,335, as compared
with 3,333,591 a year ago. On the other hand,
figures for January for cattle and sheep show
a slight falling off from the December levelIn retail trade favorable reports are general,
notwithstanding disturbed conditions and
reduced production in some districts. Even
from some of the manufacturing districts it is
reported that the retail business situation is
very encouraging, with an increase in some
lines of 25 per cent over 1918. In the First
District the public is purchasing freely, while
in the South and West at least fairly good
trade is reported. In the Middle West reductions of prices are noted in some quarters and
buying has not been satisfactory. Everywhere
retailers themselves are purchasing from hand
to mouth on account of uncertain t}" of prices.
This has unsettled the jobbing and wholesaling
business which in any case would show a normal
reduction in activity at this season of the
year. There is a strong demand in many
quarters for jewelry and luxuries, including
pianos, which indicates that consumers still
have resources for current use.

MARCH 1,1919.

FEDERAL BESERVE BULLETIN.

Financially, conditions during the month
have been quiet and reassuring. Interest and
discount rates have on the whole been stable,
with a tendency toward moderate decline in
rates for time paper, especially paper with
prime commercial names. Call money has
been firm, with an upward tendency reaching
7 per cent on February 24. The suspension of
operations by the money pool has had but little
if any perceptible effect upon conditions.
Rates at Federal Reserve Banks have remained
practically unchanged, with the exception of
a slight alteration at Boston. Bank operations, as shown by the Board's report of bank
deposits (published in place of clearings) show
a marked increase in volume, which has been
especially pronounced in the larger centers.
From the Seventh District it is reported that
bank clearings are still very large, gross bank
deposits showing decided increase. Banking
conditions in general show a condition of
greater ease, with some accumulation of funds
at centers and a strong tendency on the part
of hoarded money to return to the banks.
According to some bankers' estimates, the
amount of hoarded money that has been returned to banks since the armistice would
aggregate $300,000,000.
Business Readjustment in the United States.
The following special reports to the Federal
Reserve Board have been obtained as the
result of a questionnaire sent to Federal
Reserve agents for the purpose of ascertaining
the extent of readjustment in the several
districts. The questions asked were as follows:
1. To what extent has business in the district
road justed itself to peace conditions?
2. HOY*7 far has labor been reemploycd in
peace activities'?
3. How far have the industries of the district
readjusted themselves to a normal basis ?
4. What changes in basic prices have
occurred ?
5. How far has demand resumed its normal
footing ?




205

6. What special difficulties are being encountered ?
7. What is the outlook for business, both
domestic and export?
8. What is the prevailing tone of business
sentiment ?
Not all have given specific replies to the various
inquiries, but the reports so far as published are
given as received. Lack of specific data rendered
it difficult to make positive answers in all cases.
REPORTED BY DISTRICT NO. 1.

Throughout the entire district, there is
evident iess apprehension regarding future
conditions. Although business is by no means
on a settled basis, confidence is apparently
returning, and there is more inclination to
enter into future commitments.
Retailers, having been cautioned for months
of the probable loss to those having large stocks
on hand during the transition, made haste in the
closing month of last year, to cancel orders, and
have since refused to commit themselves to anything but a da}7 to day purchase policy. Jobbers and wholesalers have followed the same
course, with the result that manufacturers have
but few orders on their books.
In the meantime, the public has purchased
so freely that now the dealer is again coming
into the market.
The northern section of the district (Maine,
New Hampshire, and Vermont), which, because
it was devoted largely to agriculture was least
affected by war conditions, has been little
troubled by the readjustment. Labor is being
comparatively well employed, and business is
running much as usual.'
The southern section, on tho other hand, is
more densely populated and given over very
largely to industrial pursuits. "During the war
great expansion was experienced, with profits
large and wages high. The sudden slackening
of its activities brought a drastic readjustment.
The first shock of this has evidently passed, and
sentiment is much more cheerful.
Labor conditions are far from satisfactory
in the manufacturing centers, and tho paradoxical condition is feeing experienced of employees striking for increased wages, in a
period of considerable unemployment. Disturbances have been confined largely to textile
cities, Lawrence, Mass., being the storm center.
A reassuring feature is found, in the fact that
the local labor union has refused its support,
and the strike is being conducted by a radical

206

FEDERAL RESERVE BULLETIN.

MAECH 1,1919.

element. It is believed that the majority of sumer the more it has been able to achieve in
the employees would return to their work were the process of liquidation and readjustment.
it not for fear of bodily harm from the strikers.
We have no evidence of any widespread reThe general situation as regards unemploy- duction in the hourly rate of wages in any inment has changed but little, except that those dustry; in some lines there has even been an
centers which released many workers on war increase since the armistice. Nevertheless, the
goods, and consequently had a large surplus | average employee's weekly earnings have deof help, are being "eased" by persons leaving to jcreased, due in part to the elimination of overobtain employment elsewhere, or to return to itime. Moreover, many who had acquired a certheir former homes.
tain degree of specialized skill and a proportionRates are lower than a month ago, although | ately increased earning power in industries ena little strengthening is apparent from the jgaged in war production have been thrown out of
quotations made early in the month. The re- j work by the shutting down of those industries,
striction of business and consequent release of Iand, being unable to find peace-time jobs requirworking capital has helped subscriptions to !ing the same type of knowledge, have been forced
to go back into the ranks of unskilled labor.
United States certificates of indebtedness.
Reports indicate that the labor cost per unit
Call money is quoted 5£ per cent. Time
money is quoted 5J per cent to of per cent, may have decreased, because of the elimination
with commercial paper selling as low as 5 per of overtime, the weeding out of the least efficient
cent. Bankers' acceptances are quoted 4 ^ labor as employers find it necessary to lay off
per cent indorsed, and 4^- per cent unindorsed. some of their force, and the closer application
In answer to inquiries as to the trend of of employees who remain and who now begin
their deposits since November 11, 1918, letters to prize their jobs more highly than they did.
have been received from 17 of the largest savREPORTED BY DISTRICT NO. 3.
ings banks located in the larger cities in the
During the past month the process of readsix New England States. Without exception,
these banks have had an increase in deposits. justment of industries in this district has made
In five cases this was classed as being extraor- some progress. There have been recessions in
dinarily large; in fact, four described it as prices of many commodities and in anticipation
the largest in their history. Of the other 12, of further reductions the attitude of buyers
has continued to be marked by conservatism.
6 had large and 6 had moderate increases.
In some places, especially those having a Many producers are operating at small profits
foreign population, evidences that money has because of the continuation of high manufacbeenlioarded are coming to light, and currency turing costs and the necessity of quoting goods
is being deposited in the same bank wrapper at more reasonable prices. It is reported that
dealers are selling some lines of goods at less
as when withdrawn months ago.
The increase in deposits, however, is attrib- than the cost of production. Curtailment of
uted more to the high, wages being received production has been noted and this has been
and now being saved. In one manufacturing aided, in the case of many textile lines, by the
center, on a recent pay day, the average deposit unsettled labor situation.
The retail business situation continues to be
was about 1100 as compared with $36 on a
very encouraging. Compared to January there
corresponding day in 1915.
has not been very much change, but compared
REPORTED BY DISTRICT NO. 2.
to last year the estimated increase of volume
Business and industry appear still to have of business runs from 18 to 25 per cent. The
reached only a comparatively early stage in the mild weather has resulted in a comparatively
readjustment to peace conditions. From prac- light demand for heavyweight material. Many
tically all liiiesj no matter how diverse, comes of the stores are still in possession of large stocks
the report that business is much curtailed. of winter goods which they will have to carry
Most concerns cither continue to center effort over until next winter.Following is a table showing the result of
in liquidating stocks which were on hand when
the armistice "was signed or, where sueii liquida- inquiries made of representative concerns in the
tion has been practically completed, are waiting district as to industrial and business conditions.
on prices and buying or producing only enough From the replies received it seems that the
to meet immediate requirements. Relatively transition from war work to civilian business
few are purchasing or producing to anticipate is proceeding satisfactorily, and inventories do
even a moderately distant future. In general, not seem to be unusually large. Labor is in
the nearer a concern is to the ultimate con- greater supply in almost every line and appears




MARCH 1,

to be less restless. The uncertainty of the
future and the lack of satisfactory amounts of
orders on hand are reflected in the small number of firms reporting any anticipated construc-

i

I

1
£

o

r

I)veins? AYI. * flTi'shinf

Glass
Grocers and food products

4
8
/\
\
4
3
•1

3
3
4

J
3

i
i

3
1
3

4 ... I 7
3 . 1 4
4
{

6
1

2

3

2
3
2

1

Shoes
Si^vs 'acps etc

3
6
10
3
6
3
2
14

Tin plate and tin fans...
Tobacco, cigars, etc
W ire
..
Waolons and worsted
Miscellaneous (gummed
labels, pianos, pens)... 3
239
Total




3
3
4

4

i

9

3

IP
7

5
3

4

6 2
8 9

8
5

13
5

9

1

10

1
9

2 i i
2 ! 1
13

fT'PPS, CtC

1
1

•x

3 •
2

1Q

Lumber and millwork... 10
Machinorv, f o u n d r y
products, m a c h i n o 26
fools etc
5
2
Paints
Paper, par,er nroduots,
7
and Atwine
3
P G vrol (im
Q
Potte^"
r
3
Ri'bbe foods

,.

,.

3
5

i
-•*

9
Hai s
Hosiorv and. knit goods.. 15
Iron find ^t^fsl
Leather, hides,
and
13
giaxod kid . . .
3
Linoleum
Locomotives, boilers, en-

7

d

1
4
4

9
2

Antoniol)ilos fvnc* j^fivt^

Do you
anticipate
making
any
extensions
or repairs to
your
plant
in the
near
future
which
will
necessitate
the
chase
of
building
Is the matesup
rials
or
quate? equipment?

Have
you a
satisfactory
amount
of
orders
on
hand?

Outlook.

4

1

... _.

A^riCv2ltui-li^)lcF-nts

Cotton and 1
cotton troods
Dpnartmpn* storp^s
Drv coods 1and fictions
1

of plants or extensive repairs. Five per
of the replying concerns consider the outexcellent; 17 per cent, good; 20 per cent,
54 per cent, uncertain; 8 per cent, poor,

PI

3

C o n fp o i s o n PT**7

tion
cent
look
fair;

Have
the
Are the
prices
quanof your
tities of
prodmateSummary of replies.
uct
Are
rials,
sup- they been
plies, princi- lower
pally
reand
goods for war cently
work from
as
shown or ci- the
by your vilian high
busi- prices
last
inven- ness? prevailtory
ing
larger
during
than
Are
Has
Is
the
usual?
Is
Is
Is
you
there
war? labor labor there labor been paying
les s
any
more 1(3£ s
abund- rest- ploy- more lowering for raw
effimateof
ant? less? ment? cient?
wages? rials?

Industries reporting.

Cement, slate, and stone.
Chemicals, fern 1 i z e r s,
drugs, soans, etc

207

FEDEBAL BESERVE BULLETIN.

1919.

1

12
10

13
11

13
3

2 i 11

2

-.
1
4

©

1
1

4

3

5

3

1

9
9

1

9
9

9

3

9
9

7
3
4
3
3
4
3
3
3
IS
7

2 11
3

3
1

7
9

8
2

9
7

10

5

13

19

4

90

17

9
3

95
9

9

9

3

1
1

1

3
3

1

13
4

5

1

9

3

1

6
7
13
1

2

2
9
1

3
1
1
9

1

9
9

9

9

4

1
9

1

9

9
1

5

9

3

d

4

4
4
4

3
1
1

2

2

3

3
1

8
7
1
5
ft

10

1

1
10
6

1

18
7
3
14
13

fi
4
1
12
8

5
3
1
3
2

1
1

19,
2

4

8
1

8

4
6

9

1

15
7
9,
15
13

9

9

1

9

Q

9

2

g

17

9,

9,4

19

4
1
1

7

4

6
4

90
3
1

9

1

1

3
1

4

9,
5

15 10

7

1
3
4

7

4

3

6
1

5
1

9,

1

6
4
4
4
3
4
3

3
1

8
3

9

4
3

4

4
2

4
3

3

11
13
2

1
1
1

9
3
1
2

Q

8
5

5
3
3
4

4
3
3
4

4
3
3
3

3
14
5

1

1

9

2
1

9

9

9
9,

(
<

i

&
i

ti t

d

d

3

1

n

n
7

3
1

9

1

13
3

2

9

-f

9

fi

2

2

4

1

14
13

1

2

1

1
1
1

t

5?
4
g
1
2

4
3
3
4

4
4

4

£

9,

9

4

4
1
4
3

1
1

9,

2

2

17
7

1
9,

14
11

i

1
3
5

1

...

5
2

2 . .. 4
4 .

2

1

.. 2
.. 1
L

9

i i

1
9,

.. 1

1

3 .

9,

[ i

1

3
L 1
12 . . . 2
8 ... 1
6
1

3

1

9,

2
1
1

5

1

5
1

2
1

3
1

1

...

12
ft

1
4
1

3

1

6
3
3
1
10
3
4
2

1
1

1
6

19

rt
9,

2

7 ... 1
7 ... 1

7

2

3

4
3

19

g
1
1
6
5
1
3
1

1

9,

3

7

i

1

2

6

2

3
2

R
2

3

11
3

10 . . . 1

9
8

2

.

2
1

9,

2 . .. 1
2 .

1
1

10
6

a- I
i

4 .

5

^o

a

3

9,

2

4 .

1
1
3
1

%

7

4

2

o

9
3

4
1

Q
9

5
1

i
\%

3 .

3 .
2 .

1

Q

20
4
?

i

2

.•t

1 •
'
1
9

9
A
9
1

3 •

a

5
2

5

•.
1

i

1

7

9
1
2 2
2 < 12 1

3 ;....

3
ft
3
q
3
6
13
3

5
3
2
9

9,

1
3
3
i

9,

1
1
2
13

9,
3

4

61 4
5
2
1
3

6
(j

7

3

1
5

10
3
6
2
2
13

i
2

3 ...

1
1

7

4

9

5

1
1 9
1 4
fi 4
3
1 5
2 1
2
4 10
3

i
i
i

3
9

9

8
3
2
2
1
11
1

4
9

4
1
5
3
5
fi
1
3

3

1
3
2
2

12

2

2

1

3
1

1

2
1

114 129 20 221 14S 93 225 21 147 91 186 62 90 142

1

3
6
3
3
6
8
3
6
2
9

13
3

4
3
?r
9

5
9
3
1
1
12

9,

3
2
1

9,

13
3

3

1

1
3

9,

5
1
3
5

9

1
1
1

3
6
2
1
13

5
4
1
4
2
1
2

i 1

2

3

7

17 228 131 89 212 16 142 203

5 .
2 .

1

1 .. . 3
6 ... 1

3

2
4

1

2
2

.. 2
1 1
1 .. . 1
1 .. . 1
12 . . . 1

2
1
3

.. 2 ...

3
1
f
>
1
2
1
1

9

1

1 --

81 150 jl 1 41 48 128 19

208

FEDERAL RESERVE BULLETIN.
REPORTED BY DISTRICT NO 4.

MARCH 1,1919.

Men of judgment and foresight generally are
optimistic as to the future, believing that when
Readjustments appe&r to be progressing some general line finds its bearings and comfairly satisfactorily. There are, however, two mences activities others will soon follow.
things which tend to delay.
The first is the adjustment of Government
REPORTED BY DISTRICT NO. 5.
contracts. Many firms have been unable, as
Inquiries have been sent to all lines of busiyet, to make their annual reports on account of
not knowing in just what position they stand in ness in an effort to cover the readjustment situregard to these contracts and, consequently, firms ation thoroughly. The questions are stated
interested hesitate to make plans for the future below and brief summaries are given indicatuntil they know, to a fair degree of certainty, ing the tenor of different replies, together with
what funds will be available for new projects. my own summary on each subject.
1. To what extent has business in this disAnother hindrance to the resumption of
peace time activities is the high prices. There trict readjusted itself to peace conditions ?
Answers:
have been some small recessions in prices, but
None.
these serve to accentuate the waiting mood for
Not all.
the reason that they have not been oi sufficient
Slowly.
magnitude to convince buyers that they have
Delayed.
Very little.
reached a level at which business will become
Twenty-five per cent.
active. In fact, these slight reductions are
Thirty per cent.
disturbing rather than helpful.
Forty per cent.
Unemployment of labor does not exist to
Partially.
Fair progress.
such an extent as to elicit concern at the presNot yet normal but less trouble in getting goods.
ent time, but it is rather the fear of what will
Being adjusted with little disturbance.
take place if it continues and becomes general.
Very large extent.
Overtime and bonuses are a thing of the past.
Good.
Normal.
Some manufacturers have discharged quite a
Now adiusted.
few of the men who had been engaged on high0. K. "
priced special war work, but advised them, at
Fertilizers, interfered with by low prices of cotton.
the same time, that there was employment in
Flour and grain, uncertain on account of Food
Administration.
other parts of the factory at lower wages and
Tobacco, remarkably well.
shorter hours. In many cases this has resulted
Shoes, adjustment reasonably satisfactory.
in labor being discharged at one window and
Summary: From number and character of replies, rereemployed at another without causing any adjustment is apparently proceeding with reasonable
rapidity and quite as satisfactorily as could be expected.
trouble.
It would seem that it would be impossible to
2. How far has labor been reemployed in
have what is called a normal market until all peace activities ?
commodities are governed by the law of supply
Answers:
and demand.
Many unemployed and others on short time.
This district is prosperous largely as the steel
Very little surplus except in coal fields.
Still a scarcity.
and iron trade is prosperous, and so far in these
Fully employed, more farm labor needed.
industries the curtailment of output has not
Working full number of men.
been such as to occasion very much concern
Well employed, efficiency improved.
when it is taken into question how largely this
Very little unemployed.
Returning men getting old positions and condiindustry was given over to war work. There
tions improving.
have been no drastic cuts in this line. There
All who have applied.
is a high output of ingots. Steel sheets are in
All returning soldiers reinstated.
demand for automobile makers and tin plate
All desiring work get it.
Being absorbed in peace activities as quickly as
mills are very active. Steel manufacturers
released.
making railway accessories report their busiQuickly employed in peace activities and disness very dull.
charged soldiers reinstated.
It would seem that if prices could once reach
Finding work.
Have secured enough labor to fill up.
such a level as to give confidence to buyers
Little or no surplus; soldiers rapidly employed.
the underlying basis of business is on such
Fairly well employed; 90 per cent.
a foundation that general business would be
More labor needed.
prosperous and labor fully employed.
Still scarce.




MARCH 1,

1919.

FEDERAL KESERVE BULLETIN

Summary: Many answers coyer entire labor situation
but are given as they have an important bearing on the
subject of reemployment. Conditions are improving,
reemployment seems to be proceeding satisfactorily.
Coal regions only are reporting unsatisfactory conditions.

3. How far have the industries of the district readjusted themselves to a normal basis ?
Answers:
Canning, prices broken and very little demand
at reduced prices.
Furniture, not to any extent.
Not very far, lack orders, labor unrest.
Waiting.
Government claims not paid, delaying return to
normal conditions.
Estimates ranging from 25 to 75 per cent.
Fairly well.
Products declining in price, labor at unchanged
wages.
Fair progress in some lines, others quite difficult.
Very "rapidly.
.Doing nicely.
Rapidly adjusting to normal.
Satisfactorily.
About normal.
Practically normal.
Apparently in normal condition.
Summary: Industrial readjustment proceeding satisfactorily, only serious complaint apparently from cotton
mills, whose products have declined considerably in
price.

4. What changes in basis prices have occurred ?
Answers:
Have declined 5 to 40 per cent, dry goods 20 to
33£ per cent.
Grain, 10 to 25 per cent, except wheat.
Corn decline, 25 cents per bushel.
Very slight.
Small.
No material change.
Only slight reductions.
Very few changes.
Some farm products show some little decline.
All commodities a little lower basis.
Slight decline, prices generally well maintained.
Labor, very little.
Summary: Only moderate concessions in prices apparent, but buyers disposed to held off. anticipating further
declines.

5. How far has demand resumed its normal
footing ?
Answers:
Little demand for canned goods.
Very little demand.
Slow.
Less demand for fertilizers.
Demands 25 to 80 per cent or normal, building
about 50 per cent.
Not yet normal.
Fairly well.
About normal, except building material.
Normal, but orders not plentiful.
Good, expecting spring trade.
Shoes, behind in deliveries.
Summary: Demands would appear to.be 60 to 80 per
cent of normal.
106597—19
4




209

6. What special difficulties are being encountered \
Answers:
Wide, uncertain on account of Government
control.
Cancellations of Government contracts.
No demand for canned goods.
Government cancellations, revenue legislation,
and high prices of labor.
Heavy losses on goods on hand.
Distrust of to-day's prices.
Hesitation on account of expected decline.
Waiting for lower prices.
High wages of labor, taxes, and cost of materials.
Public awaiting lower prices.
High labor, poor railroad and steamship facilities.
No reduction in overhead charges.
Buyers seeking lower prices.
Limited demand, buyers awaiting lower prices.
Restrictions on exportations.
Coal strikes and nonproduction.
Cotton mills accumulating stocks.
Low price of cotton.
Building, difficulty in obtaining loans based on
present cost level.
Summary: Waiting attitude, indisposition to make commitments based on present prices.

7. What is the outlook for business, both
domestic and export %
Answers:
No export demand.
Domestic poor, foreign depends on ability to ship.
Grain, domestic bad, buying from hand to mouth;
export, none, prices artificial.
Not encouraging.
Only fair.
Small volume for spring.
Fair.
Not encouraging now, but anticipate improvement.
With return of confidence, bright, both domestic
and foreign.
Looks good if could only get it started.
Improvement after six months.
Building, anticipating improvement.
Anticipate good business.
Reasonably good.
Good, domestic.
Tobacco good; export good, if restrictions removed.
Very good.
Summary: General disposition not to take present difficulties too seriously, and improvement generally anticipated.

8. What is the prevailing tone of business
sentiment ?
Answers:
Pessimistic,
Pessimistic, but our policy is "peptomistic."
Depressed.
Hesitating.
Waiting.
Not encouraging, awaiting removal of Government
restrictions.
Uncertainty.
Upset, difficult to say.
Present gloomy; along future, optimistic.

210

FEDERAL RESERVE BULLETIN.

MARCH 1,1919.

Expecting an early settling down to more
nearly normal conditions, some of the large
houses are adding to their traveling forces.
Automobile agencies, and many other lines
which during the period of the war were classed
as "nonessential," are again actively in the
field, reorganizing their forces, and in this way
giving employment to many of those who have
been engaged in war work, as well as the
returning soldiers.
REPORTED BY DISTRICT NO. 6.
While it is true that some soldiers have
probably returned to the farm, reports show
The transition from a war to a peace basis that a very small percentage of those who left
has up to this time caused no considerable farm work to enter the Army have returned
general disturbance in the Sixth Federal Re- to the farm. It is indicated that, having beserve District. The amount of trade has held come accustomed to crowds and being attracted
up fairly well, although it has not come up to by life in the Army, they are reluctant to return
the volume expected after the signing of the j t) life in the country. Many reports show that
armistice. This trade, however, has been to a j returning soldiers, especially colored soldiers,
large extent in goods already manufactured | who have already gone to work, are not renderand in the hands of the jobbers s,nd whole- Iing as efficient service as before they went to
salers. There has been a marked slowing up war.
in manufacturing, due to the cancellation of
There is a great reluctance on the part of
orders by the Government, and to the fact those who have been engaged in war work, and
that orders from general trade are not forth- receiving higher wages than ever before, to
coming.
return to work they were doing before the war,
With the cancellation of Government orders, and to their old wages. While the cost of
it is necessary for business to turn its atten- living has of course increased, this class of
tion to general trade, and this it is doing cau- workers have been enabled to enjoy many luxtiously. A definite and decided decline in uries which they have previously not been in a
prices all along the line is momentarily ex- position to purchase'. In all probability wages
pected, and manufacturers are delaying the will not reach the level of the prewar period
purchase of raw materials with this in view. for a long time, and the general standard of
Factories in some lines are operating to an living of these classes of workers will be higher
extent necessary to supply immediate and than before the war. On this account prices
current demands; others have shortened their of everyday necessities of life will remain
hours, while a few have closed entirely for the j higher than before the beginning of the war.
time being. Some of the cotton mills in the
Prices of meat and bread, "the two main
district are operating on full time, and while articles of food, remain as high as at imy period
in a few instances some employees doing night during the past several months, and have
work have been released, revival of other lines shown no indication of declining. Butter,
of business has been sufficient to absorb those eggs, and a few other articles have declined to
who are in need of work. The closing down some extent, and reports indicate that lowerof the powder plant at Nashville created abnor- ing of prices of various other items of food
mal conditions with regard to the number of may he expected.
unemployed men. Many of these employees,
Buying in practically all lines, not only by
however, were not residents of Nashville and j jobbers and retailers, but also by the ultimate
have gradually drifted back to their homes. ! \ consumer, is being done in a "hand-to-mouth"
The milling interests in that community are in manner; people are buying just what they
an unsettled condition, and probably will be actually need for immediate use, and are not
until the price of wheat is put upon a more per- i buying in quantities, expecting an early lowermanent basis. During the past few weeks in- ing of prices. This frequent purchasing of
ventories and readjustment of stocks to meet! small quantities is holding the demand steady
peace conditions have largely occupied the !| in many lines.
time of merchants and manufacturers. Trade . The principal difficulty in this district is the
has been steady, but quiet in practically all \ low price of cotton. Farmers are determined
lines.
"
' not to sell cotton now in their hands for less

Answe r s—continued.
Pair.
Hopeful, can not get worse; hope better.
Cautious, conservative.
Healthful, optimistic as to future.
Tobacco good, others awaiting developments.
Good.
Good, with exception of "soreheads."
Good; will soon be normal.
Summary: Making the best of present conditions and
looking for future improvement.




MARCH 1,

1919.

FEDERAL RESERVE BULLETIN.

211

Hum 35 cents & pound, and coupled with this In the Middle West the speeding up of all
they have organized a powerful'movement to activities of production for war purposes was
reduce this year's acreage planted to cotton at confined chiefly to the normal products of
ie.ast one-third, raising more foodstuffs and manufacturing enterprises which could be
feed, cattle, and hogs. All indications point utilized in war, rather than being directed to
to a considerable reduction in cotton acreage, making of munitions and other strictly war
and the purchasing of less fertilizer.
material. There were some very large conConnected with this movement, there is a tracts for munitions and other strictly war
feeling of optimism and a belief that the price products made during the last six months of
of cotton will soon begin to respond; and it is actual hostilities. In many instances, howfelt that as soon as cotton begins to move at a ever, these contractors had scarcely reached
satisfactory price almost all lines of business the stage of quantity production and in some
in these States may expect a largely increased cases had not completed their plant expansions
volume of trade. In the meantime, however, when the war stopped, hence the large number
there is a policy of "watchful waiting'' being of unsettled and informal claims to be passed
pursued by manufacturers, wholesalers, job- upon b}^ the War Claims Board.
bers, and retailers.
Sofar in Chicago and the immediate vicinity
there are reported 658 contracts on which there
REPORTED BY DISTRICT NO. 7.
are claims to be adjusted. Of this number 200
Aside from the current rumor of a possible are in, and approximately 75 have been passed.
general building strike on April 1, there seems The amount of money represented by the face
to be no indications of interference by labor, value of these contracts when completed is
through strikes, with a general business read- variously estimated, but probablv approxijustment to a peace footing in this district. mates $400,000,000 for the Ordnance DepartBoth labor and capital are cooperating to ment alone, with something like $200,000,000
continue the orderly readjustment now under on other classes of contracts. It does not
way. Efforts are being made to give the follow that the amount of the claims will
returning soldier employment as soon as he is closely approach this total if those already
released from military service. At the same passed on are a fair criterion. Detroit, it is
time care is being exercised to avert the unnec- estimated, has contracts to be adjusted the
essary throwing out of employment of those face value of which aggregate upward of
who were taken on during the war period, and §100,000,000, and Indianapolis has about
where such are let out, to assist them in finding 860,000,000. No estimate is obtainable from
employment in other lines now expanding Milwaukee.
their operations in consequence of tho withNecessarily the difficult feature of this situadrawal of war-production restrictions.
tion lios in the plight of the subcontractor,
Careful inquiry discloses that at present the the prime contractor hesitating to make paynumber of unemployed men in the Seventh ment to the subcontractor until lie lias some
Federal Reserve District is remarkably small idea of what tho Government is going to allow
when the progress which has been made in him in the adjustment on his contract. Meanreadjustment is considered. The country is while tho subcontractor, as well as the prime
entering the fourth month since hostilities in contractor, lias borrowed liberally at the banks
Europe ceased, and industry in the Seventh to provide raw material and. to work it up.
Federal Reserve District is able to continue Until the Government allows those claims,
operations on a scale to maiitari labor em- the credit situation is somewhat involved.
It is expected, however, in a few days the
ployment not far below normal at this season
of the year. Those connected with the United Government will complete arrangements by
States Employment Service, and the various which partial payment can be made by the
relief organizations, say that the existing dis- prime contractors to subcontractors, which will
tress in consequence of unemployment is less relieve the situation. While the amount is not
large, comparatively speaking, the wide disthan usual at this period of tho year.
The slow recessioj'i of living costs has chocked tribution and the number of small concerns
a, tendency to force wage reductions, and this affected make this an important factor because
has encouraged cooperation on the part of labor it restricts tho abilitv of small manufacturers
|
organizations in the effort to avoid strikes 1 to make definite plans for proceeding on a
peace footing.
wherever possible.




212

FEDERAL RESERVE BULLETIN.

Notwithstanding this handicap the labor
situation, according to the latest statistics,
shows a remarkably small number of unemployed. An indication of this is found in the
following compilation from the United States
Employment Service statistics from a limited
number of representative plants:
| Number j N m n b e r o f Estimated
Towns.;
, | employees. surplus.

Michigan...
Indiana
Wisconsin..
Illinois

5

h

247
157
212
558

I
;
i
i

178,806
109,013
108,086
295,979

37,500
8,300
12,000
1940

1

This Illinois surplus represents Joliet and Rockford, the other five
Illinois towns, including Chicago, reporting no unseasonal surpkis.
CHICAGO'S LABOS WELL EMPLOYED.

Want advertisements in the leading mediums
used by employers and those seeking employment usually are a fair criterion of labor conditions in Chicago. It is interesting, therefore,
to study some comparisons between January
and November. In November last there were
20,625 advertisements for male and 14,506
advertisements for female help in one of the
leading mediums, while in January there were
15,895 advertisers f or male and 18,110 for female
help, a decrease of 4,730 for male and an increase of 3,604 for female help. "Situations
wanted" statistics are in agate lines, and show
2,011 lines for men and 1,229 lines for women
desiring; positions in November compared with
3,215 lines for men and 1,767 for women in January, an increase of 1*204 lines on "Situations
wanted" for inen and 538 lines on "Situations
wanted" for women in the two months.
Uppermost in the business mind, of course,
is the thought of eliminating as far as possible
the hazard of future commitments in a period
of declining prices, but offsetting this is the
existence, especially in the Middle West, of a
greatly increased buying, power, growing out
of the high prices for tlie natural products
of this vast agricultural section, together
with the high wages received during the war
period.
With retail stocks reported as normal or
below, and with skilled labor at all the industrial centers pretty fully employed, and with
labor conciliated, apprehension of the usual
disturbing features of a general readjustment
period is being dispelled. Any development
indicating that the price readjustment has




MARCH 1, 1.919.

reached a point of stability, will, it is believed,
turn the tide and stimulate business activity
all along the line. However, that point has
not yet been reached.
Food commodity tonnage in stock is about
prewar normal, but dollar value is considerably
larger on account of the high prices, indicating
that considerable readjustment remains to be
done along that line. Inability to adjust prices
generally is retarding the flow of merchandise.
This applies with equal force to dry goods and
kindred lines of Business. This hesitancy
slowed down manufacturing, and while the
volume of retail business reported for January
and February is 30 to 45 per cent greater than
last year and collections are good, yet manufacturers apparently have not reached a point
where they feel justified in guaranteeing prices
to customers. There has been a depreciation
in cotton and woolen goods during the last 60
days of approximately 25 per cent. Stocks of
merchandise are rapidly being diminished, and
depreciation in price will not seriously affect
the retailers, us stocks are comparatively
small. Jobbers guaranteed prices for spring
merchandise up to March 1, to a large extent,
and purchases are being restricted to nearby
markets. Koad sales for immediate delivery
are good.
REPORTED BY DISTRICT NO. 8.
Reports from various lines of industries indicate that a large percentage of employers are
cooperating in furnishing employment to soldiers and sailors who have been released.
Many employers are taking them back, as well
as retaining their present force. A campaign
has been started in St. Louis with tlie slogan
"Make a job for every fighter/' and this is
resulting in employers giving preference to the
soldiers and sailors. Munition workers who
have been released are gradually being absorbed
by other industries. However, general business has not as yet resumed such proportions as
fully to absorb the present supply of labor.
It is estimated that there are approximately
15,000 unemployed workers in St. Louis. In
the other centers in this district the number
seems to be very small. Those out of employment seem to be mostly unskilled workmen,
as there is a good demand for skilled workers
in many lines. For several weeks past the St.
Louis office of the United States Employment
Service has been placing an average of about
800 men in jobs each week. The labor situ-

MARCH 1,

1919.

FEDEEAL BESEKVE BULLETIN.

ation seems to be improving in this district,
and with the revival of business activity it is
believed that the surplus supply of labor will be
fully absorbed.
HOW FAR THE INDUSTRIES OF THE DISTRICT
HAVE READJUSTED THEMSELVES.

Reports from the different industries in this
district indicate that business is gradually
resuming a normal basis, but that it has not
as yet been fully accomplished. Prices in
many lines have not yet declined far enough
to induce vigorous operations. However, declines in the prices of certain commodities
have taken place, which has stimulated buying.
In other lines merchants arc still buying only
for their immediate needs. With further readjustments of prices, a marked revival in business is anticipated. Iron and steel manufacturers report that normal demands are gradually filling the gap created by the cancellation
of war contracts. Some report that they are
now doing practically a normal business. The
demand for automobiles, garages, etc., is helping the iron and steel industry. Shoe manufacturers are doing an active business, though
it is not quite up to this time last year. Wholesalers and jobbers of dry goods state that their
business is declining, as merchants are buying
cautious!}-, anticipating further reductions in
the prices of cotton goods. A large clothing
manufacturer states that he is drawing in his
lines a little. The flour milling industry is
still considerably below normal. Business in
the electrical line is becoming more normal.
Considerable improvement in the wholesale
grocery trade is apparent, as is also the case
in the drug and millinery lines. Readjustment of the candy industry is taking place
slowly. This is also true of the lumber industry. One of our large manufacturers ventures
the statement that the industries in this district have readjusted themselves to the extent
of about 75 per cent.
WHAT CHANGES IN BASIC PRICES HAVE
OCCURRED.

Manufacturers of iron and steel products report that slight reductions in the basic prices
of metals have taken place, averaging about
10 per cent. The price of leather remains firm.
Dealers in dry goods report that there have
been reductions in their line of from 10 to
30 per cent. Electrical supply houses report some lowering in the prices of copper




213

wire and other raw materials. Wholesale
grocery houses state there has been a slight
reduction in some of their articles. Drug
manufacturers report that declines have occurred in articles used in the manufacture of
munitions, such as glycerin, carbolic acid, and
their derivatives. Candy manufacturers say
that material in their line is practically as high
now as last year. Some slight reduction in the
price of paper is reported. Little change in
the price of lumber.
KOW FAR THE DEMAND HAS RESUMED ITS
NORMAL FOOTING.

In the iron and steel line, leading manufacturers estimate that the demand has resumed from 60 to 85 per cent of its normal
I footing. However, one large boiler manufac| turer states: "The demand is far from its normal footing. There arc many excellent inquiries for prices, but after prices are furnished
there is a tendency to hold back placing orders,
making it difficult to obtain business/' A
large shoe manufacturer estimates that the
demand is only about 70 per cent of normal,
and another states that he expects it to be
normal within 60 days. Hardware dealers report that their business is practically normal.
A large department store also states that the
demand is normal. A large wholesaler of dry
goods states that the demand for his goods has
resumed its normal footing to the extent of from
60 to 70 per cent. Another dry goods house
states that the volume of business"in its community is above normal or prewar average,
although somewhat less than for the corresponding period of 1918. A large electrical
manufacturing company states that the demand is normal. The millinery demand has been
favorably affected by the termination of the
war. A large wholesale drug concern states
that its sales during January were the largest
in its history. The demand for lumber is reported to be much below normal, and the
demand for paper is said to be about 80 per
!
cent of normal.
WHAT SPECIAL DIFFICULTIES ABE BEING
ENCOUNTERED.

Reports from the various lines of industries
in this district indicate that the following are
the main difficulties being encountered: (1)
Tendency on the part of buyers to wait for
reduced prices; (2) high cost of labor and the
more or less unsettled labor conditions; (3)

214

FEDERAL RESERVE BULLETIN.

marked decline in price of cotton; (4) lack of
building and construction work; and (5) slow
transportation. A large Hour mill states that
preference is given for the export of wheat
instead of flour, and this control of the export
flour trade is its special difficulty.
WHAT IS THE OUTLOOK FOR BUSINESS, BOTH
DOMESTIC AND EXPORT.

Reports from practically all lines of industries in this district express the belief that domestic business will show a healthy increase
in the near future, but that its full development will be gradual. A large iron and steel
manufacturer states that domestic business
will be good after prices have declined to
normal. A large paper company states: "We
anticipate good demand for both domestic and
export trade, because in both cases orders have
been held up for several months, thus accumulating a demand." Efforts are being made
in this district to develop foreign, trade, and
reports indicate that the outlook is favorable.
WHAT IS THE PREVAILING TONE OF BUSINESS
SENTIMENT.

The present prevailing tone of business sentiment in this district is one of conservative
optimism. Business men, as a rule, are looking
to the future in confidence. An iron and steel
manufacturer states that "after a general readjustment in price of raw materials and labor,
business will be good." A boiler manufacturer states: "The prevailing tone of business
sentiment is an element of doubt as to what
the future holds. All manufacturers are afraid
of the high cost of labor and are therefore
reluctant to place an order for material, being
unable to determine whether there is going to
be an improvement or not, and are therefore
operating conservatively." A dry goods company reports: "Business sentiment in our district shows utmost confidence. Overcoming
prevailing timidity only obstacle to assumption
of a good volume of business." The vice
president of a large hardware company, who is
familiar with trade conditions in this district,
states: "Same conditions will continue for 30
to 60 days."
REPORTED BY DISTRICT NO. 9.
The readjustment process is in full swing
throughout this district, with surprisingly little
variation from ordinary and normal conditions.




MARCH 1,1919.

The return of men in various military units and
in the naval service has been slow. Many have
not yet received their discharge. The disposition of employers has been to hold open the
posts formerly held by men in the service, and
there has been little complaint of inability to
obtain satisfactory opportunities for employment. With the opening up of spring activities within a very short time, the opportunity for
reemploymont of these men will improve considerably^ and iio difficult}*- is anticipated in
absorbing them into industry and the ordinary
agricultural and business activities.
The district has been short of farm labor since
the beginning of the war, and men fitted for this
class of activity will be in great demand.
A powerful factor in preventing radical
changes due to readjustment has been the fact
that the district is largely agricultural and will
obtain a guaranteed price on wheat and probably very good prices lor their agricultural products throughout 1919. The war has therefore
brought no curtailment in an agricultural sense,
but, on the other hand, the indications all point
to a considerably increased acreage of wheat,
due to the Government guaranty, and to increased acreages of rye and good acreages of
other grains due to a continuously active demand.
The chief readjustment now in progress is
confined to industrial plants that have been
largely engaged on war orders. So far as those
plants are concerned that were employers of
considerable numbers of men, they have in all
cases taken steps to discount the termination of
war contracts by providing other work to take
their place, and while forces have been reduced,
there has been no unemployment so far, and
men released from war service have found ready
employment in other lines. As an indication of
this, there is at several points in the district at
the present time a demand for carpenters.
Comparatively few men are looking for jobs.
In an industrial sense the district is in a very
healthy condition, and there are no signs of any
sharp decrease in the employment afforded by
such concerns.
The spring outlook indicates the gradual resumption of building activities, which, especially
at urban centers, have been sharply curtailed".
Counties and municipalities throughout the district are planning large amounts of spring work
of a public nature and will again take up numerous projects, involving paving, municipal construction, road and bridge work, drainage, etc.
Readjustment conditions vrere recently given

MARCH 1,

1919.

FEDERAL RESERVE BULLETIN,

very careful study by the mayors of the principal cities and towns of Minnesota in conference
in Minneapolis, and throughout the district the
disposition is to provide for municipal committees on reemployment of men in service to act
in an advisory capacity with the public officials
in the handling of current problems.
The district is prosperous, and the outlook for
1919 will continue to be very satisfactory, if
spring planting conditions are favorable and
the farmers enjoy a satisfactory crop year.
REPORTED BY DISTRICT NO. 10.

Transition from a war to a peace basis is
underway in the Tenth Federal Koserve District. Generally, and in a large way, it is
making rapid progress, although in some lines
of industry the change involves intricate
problems that, in the present state of the business mind are quite difficult of solution. It is
agreed that the one big problem which stands
in the way of harmonious and equitable adjustment is how to get down from high war prices
to equitable peace prices without working unnecessary hardships or entailing undue losses.
The bank clearings of seventeen clearinghouse cities of the district, considered a fair
index to the volume of business, exhibit a total
of $1,495,332,000 in January, 1919, as compared with $1,457,456,000 in December, 1918,
and $1,389,721,000 in January, 1918, indicating
a gain of about 2.6 per cent for January, 1919,
over December, and 7 per cent over January
of last year. While the volume of business reflected in these figures would indicate that
business is rapidly returning to normal conditions, an analysis of the situation discloses
that this is largely the result of the continued
heavy movement of agricultural products and
live sotck to the markets under stimulus of
prices but little if any below the high peak of
war prices.
Tlie mining and oil industries, the former
seriously handicapped in its efforts at readjustment by a slump in prices of products, contributed, their share to this large volume of business. Heavy-meat packing operations and a
fair flour output from mills of the district also
helped make up the total.
There are many signs to indicate a return to
former activity of those manufacturing industries which were idle during the war o± else given
over to the making of war essentials, since restrictions as to labor, fuel, and materials have
boon removed by the Government. Most of
the present activity, however, is in filling orders




215

that have been on the books, many of them for
months. New orders are coming slowly, due to
the high cost of everything that enters into the
cost of production. While it can be said that
the movement of factories to peace basis is more
rapid, for t'ne reason that their products are
generally essential, it is certain that manufacturing in this district can not reach its wonted
activity until there is a price readjustment on
an equitable basis. The same condition also
exists as to building, improvements both public
and private, road construction, railroad work,
etc., all of which are retarded by high prices of
materials and labor. And this in the face of
the fact that there is an increasing demand for
all kinds of manufactured products, machinery,
tractors, automobiles, trucks, lumber and building materials of all kinds, such as would, if unhampered, make 1919 the best year in history.
Throughout the Tenth Federal Reserve District, however, the sentiment respecting the
future is one of optimism. It has its foundation
in the knowledge that as an agi icultural, meatproducing, mining, and oil-producing section
there is no limit to be placed on its resources,
and that the United States will be called upon
to not only supply a large portion of the food
for Europe but to help with its products and
manufactures in the reconstruction of the
battlo-ient legions, in addition to supplying a
rapidly growing trade with other countries and
on other continents.
REPORTED BY DISTRICT NO. 11.
The industries of the district are being
readjusted to peace times, and the present outlook is encouraging. In some lines of trade
there is a strong tendency to defer buying and
the execution of contracts pending more settled market conditions. Wholesalers of every
class of goods report that the public expect a
substantial reduction in prices, and are restricting their bin/ing. There seems to be no
real foundation for a considerable drop in
prices. Of course, some declines are to be
expected and, in fact, are already apparent.
These have occurred principally in dairy
products and country produce. Various commodities in the grocery line have also been
affected, while others have shown a good advance. According to our reports, the market
on foodstuffs is the only one in which the
prices have been affected.
There is a feeling oi optimism as to the
future in this district, which we mainly
attribute to very fine crop prospects. At the

216

FEDEEAL RESERVE BULLETIN.

present time, the outlook for a record production in small grain and foodstuffs is very encouraging. During the past 90 days fine rains
and snows have fallen over the greater part of
the district. This moisture has effectually
broken the drouth of many months' duration.
The cattle industry, one of great importance
in this section, is greatly improved, and we
look for a further recovery as the season
advances.
As in other sections of the country, the labor
situation presents some problems. There is
considerable unemployment in both skilled
and unskilled lines, and we fear some disturbances in the way of strikes will occur. As yet
no attempt has been made to reduce salaries,
and until there is a decline in living costs, we
do not think any immediate attempt will be
made to cut salaries. Men discharged from
the Army are given preference in organizations,
but the end of the war found labor conditions
retty well adjusted, and the return of demobized soldiers has created quite a surplus.
This condition will be greatty improved as the
spring season advances and building operations
are resumed.
At present everything points to unprecedented activity in construction lines, as housing
facilities are badly needed, especially in the
larger cities, and with the end of the war
industries which have deferred construction
will now get the same under way.

MARCH 1,1919.

district for 60 wooden ships of 213,000 total
tonnage, distributed as follows: Portland 29,
tonnage 105,000; Seattle 2.1, tonnage 73,000;
California 10, tonnage 35,000. This caused a
rapid decline in the industry, and if present
plans are carried out all Government work on
wooden ships will be finished hj July.
Lumber production in the Pacific "Northwest
was affected by the diminished demand for
shipbuilding, but has since shown improvement
both as to prices and demand, with production
considerably below normal. Spruce production for th"e Government air service,'with a
monthly output of approximately 17,000,000
feet, has been eliminated.
Petroleum was produced in California during
the war under the supervision of the Government, but this activity has been returned to the
oil companies who have been released by the
Government from war obligations. They are,
however, still operating under licenses, but production and employment are practically the
same as during the war.
The activity of the copper and mining industries has been material^ reduced. The textile
manufacturers of this district did not have
many war contracts at the cessation of hostilities nor were they required to make any considr
erable physical changes in their equipment
during the war in order to perform the contracts which were awarded. Production in
these lines is practically back to normal.
The number employed in the plants building
REPORTED BY DISTRICT NO. 12.
steel ships has remained approximately the
same since November. A large number of perThe principal activities of this district being sons who had been attracted to this industry
agricultural rather than industrial, readjust- from other lines of work during the war left the
ments from war to peace conditions have been shipyards upon the signing of the armistice, but
made with slight disturbance. When the armis- their places were almost immediately taken by
tice was signed, most of the crops had been workers from the wooden-ship yards and by
harvested and the canning season had practi- returning soldiers and sailors. The present
cally ended. Contracts for many products had month and the month of January have been the
been entered into, leaving only deliveries un- dull seasc&i in the lumber mills and logging
completed, most of which have now been made. camps and in the rural communities. As set
Food being still essential, plans for the next out in the report of February 15, this has caused
season were entered into on practically the considerable unemployment in the Pacific
same scale as those of last year, with the hope Northwest and the agricultural centers, but the
for relief from agricultural labor shortage.
surplus will be absorbed by the reopening of
The principal war industry on the Pacific these industries within the next 30 or 60 days.
coast was shipbuilding, and its activity is prac- In Utah about 2,500 men employed in the
tically unabated so far as steel-ship building is copper industry have been discharged, and it is
concerned, except for the elimination of over- expected that more will be released unless the
time and extra shifts and delays due to strikes. copper market improves in the near future.
The metal trades, practically all of which were
Basic prices in general are assuming a slight
operating in connection with the building of downward trend, although the tendency is not
ships, have likewise continued their activity. uniform. The most noticeable decline is seen
The Government has canceled contracts in this in the case of food products but even in these

S




FEDERAL* RESERVE BULLETIN.

MARCH 1,1919.

the average decrease is slight, some have estimated it at from 4 to 5 per cent. Seattle reports that prices of dairy products have receded, raw milk declining from $3.70 to $3.20
per hundred; condensed milk from $6.75 to $6
per case; butter from 65 cents to 53 cents per
pound; cream cheese from 38 cents to 27
cents. On the other hand mill feed has advanced from $31.50 a ton two months ago, to
$45 at the present time. In Spokane mill
feed has advanced about 50 per cent while
oats, hay, barley, and cereals have dropped
about 15 per cent. The prices of live stock
show a very slight increase, while packing
house provisions have dropped from 10 to 12
per cent. Beans are from 2 to 2-| cents per
pound lower than during the war. Portland
reports that price recession has been noticeable since the first of the year. Various
products, particularly grain, have declined
only slightly. In the month of January, food
prices in California reached their highest point
since war was declared, following which a general downward trend was noticed. Both butter and egg prices have dropped to a somewhat greater extent than might be considered
seasonal. On November 1 butter sold at
wholesale for 60 cents per pound, on December 28, at 67 cents and on January 25, at 45
cents; it is now 55 cents. On November 9,
eggs sold at wholesale for 89 cpnts per dozen,
on January 15, for 66 cents, and on February
19, at 38£ cents. Milk prices are stationary.
Live stock prices have remained at practically
a uniform level for several months. Fancy
wheat hay which was quoted at $28 a ton on
the 1st of November dropped to $24 a ton on
December 31, remaining at that level up to
the present time. Grain prices show few
fluctuations. The price of copper has fallen
from 26 cents a few months ago to 17 cents
per pound. The latest quotation on quicksilver is $90 per flask as compared with an
average price of $117 during the year 1918.
There is no change in the price of logs, but
finished lumber prices, which receded following the armistice, have now gone back to the
approximate maximum price set by the Government during the war.
Although wholesale business is reported
good, retailers, in anticipation of lower prices,
are buying only to meet immediate needs. In
California there is an increased demand for
heavy agricultural implements and building




106597—19

5

217

hardware. The demand for lumber in the
Pacific Northwest from country yards is above
normal but from the city yards, which handle most of the business, it is far below normal. There are many inquiries from prewar
markets for flour and lumber for export, but
lack of tonnage and high rates prevent actual
transfers. Money is plentiful" and demand
active.
Unsettled labor conditions have presented
the principal difficulty in industry for the past
two montlis. The strikes in Seattle, Tacoma,
and the San Francisco Bay district are fully
covered in the report of February 15. Since
that time the San Francisco Bay district shipworkers7 strike has been practically settled by
the organization of a new boilermakers7 union,
5,000 of the 6,000 strikers having returned to
work. The Seattle and Tacoma shipworkers
are still on strike but the general labor situation in those cities is much more settled.
The question of railway and ocean rates is
causing much concern to business men on the
Pacific coast. The lowering of ocean rates
without a decrease in railway freight rates,
which were twice increased during the war,
has caused freight from the territory between
the Atlantic and the Mississippi to be routed
to the Orient through New York rather than
the Pacific coast ports. Importers and exporters express the belief that without such
business it will be impossible to maintain the
trans-Pacific steamship lines.
While this is the dull season of the year in
the export and import business, much hope
is expressed for extensive foreign trade development. A number of new concerns have been
organized for the purpose of engaging in export business, and a number of eastern companies have sent their representatives to the
Pacific coast and some to the Orient for the
purpose of estimating the possibilities of foreign trade with the idea of opening branches.
Other concerns are planning to send representatives to the Orient, especially to Vladivostok, Shanghai, Australiasia, and the Dutch
East Indies to study trade conditions.
The prevailing tone of business sentiment is
one of uncertainty and apprehension as to the
possibilities of immediate business development on a peace basis, both on account of
unsettled latoi conditions and the Government's unsettled policy on the administration
of the railways.

218

FEDEEAL RESERVE BULLETIN.

Fifth Liberty Loan.

MARCH 1,1919.

; on the lines above indicated before the expiration of two
months from now that the whole situation will have been
changed, and that we may look forward to the successful

Secretary Glass, on February 13, 1919, pre- | issue of the Victory Liberty loan on terms which to-day
sented to the Ways and Means Committee the j would seem quite impossible.
Furthermore, merely as
technique of
following statement concerning the fifth Liberty bond selling, it would be a a matter of thefixthe terms
fatal mistake to
bond bill, proposed by him for financing the | of the loan so long in advance of the offering. The issue
fifth loan:
| would become stale and its attractions would haveItbeen
discounted long before the loan campaign begins.
will

be remembered that the second Liberty bond act was
approved as late as September 24 and the bonds were
offered on October 1. 1917; that the third Liberty bond
act was approved April 4 and the bonds offered on April 6,
1918; and that the supplement to the fourth Liberty bond
act was approved September 24 and the bonds offered on
September 28, 1918.
Therefore, and in view of the early expiration of the life
of the present Congress and the apparent impossibility of
WASHINGTON, D. C ,
convening and organizing the new Congress in time to
February 10, 1919.
enact further bond legislation before the Victory Liberty
DEAR MR. KITCHIN: NOW that the revenue bill has
loan campaign begins, I
ask greater latitude
passed the House I desire, in accordance with the intima- in the exercise of a sound reluctantlyas to the terms of the
tion contained in my letter of January 15 to you and my Victory Liberty loan than discretion conferred by the Conhas been
talk with you and Mr. Fordney, to ask the attention of the gress in respect to previous loans. I should be only too
Ways and Means Committee to the necessity of the im- glad to have the Congress share with me the responsibility
mediate enactment of legislation amending the Liberty of this extraordinarily difficult determination, but, bebond acts so as to make possible the funding by a Victory lieving that it would 'be a grave mistake to reach a final
Liberty loan in the spring of the floating debt which has determination at this
been incurred and will be incurred up to that time. The with the matter as the time, I must ask authority to deal
situation may develop.
Victory Liberty loan could not be issued successfully, now
Holding these views, I have ventured to have prepared
that hostilities have ceased, within the limitations imand I submit to you herewith, a draft of a bill to amend the
posed by existing laws.
This bill would
After most careful consideration of the matter and after Liberty bond acts and for other purposes.from 820,000,000,(1)
receiving and considering the views of bankers, Liberty 000increase the authorized issue of bonds limitation as to
to
remove the
loan workers, and others whose views are most entitled to interest $25,000,000,000; (2) bonds maturing not more than
far
consideration, very reluctantly I am constrained to say 10 yearsrate sothe as regards
from
date of issue; (3) authorize the issue of
that I can not wisely determine now, in February, the not to exceed §10,000,000,000 of interest-bearing, nonterms of the bonds or other obligations which it would be circulating notes having maturities from one to five years;
wise to offer for subscription in April, when the Liberty (4) authorize the issue of bonds
loan campaign should probably begin. At the moment mium; (5) exempt war-savingsand notes payable at a precertificates from income
we are in a period of readjustment. To the slackening of
(6) confer authority upon the Secretary of
industrial and commercial activity incident to the termi- surtaxes; to determine the exemptions from taxation the
Treasury
in
nation of active warfare has been added the usual dullness respect to future issues of bonds and notes and to enlarge
of the winter season. The necessary and desirable con- the exemptions of existing Liberty bonds in the hands of
traction of our credit structure has begun and will be subscribers for new bonds and notes; (7) exempt from
greatly facilitated by the enactment of appropriate legis- income surtaxes and profits taxes all issues of Liberty bonds
lation" to permit the liquidation of claims arising under
bonds of
Finance Corporation
abroad;
informal Army contracts. Steps have been taken to break andextend thethe Warfor conversion of 4 per held Liberty
(8)
period
cent
the deadlock "which had arisen growing out of the mainte- bonds on the lines suggested in my letter of January 15 to
nance, nominally at least, of war prices in certain basic
a
industries. Upon the enactment of appropriate legisla- you; (9) create of 2 | per cent cumulative sinking fund for
the war
tion to enable the Food Administration to protect the the retirement purchase debt; (10) continue the existing
of obligations
guaranties given by the United States, I am hopeful that authority for thetermination of the war inof foreign governments after the
accordance
it will prove possible to restore the operation of the law of the views expressed by Secretary McAdoo by letter with
and
supply and demand with respect to foodstuffs, with, as I in his testimony before the Ways and Means Committee;
believe, a consequent reduction in the cost of living. A and (11) extend the authority of the War Finance Corporaperiod of rising prices and of intense industrial activity tion
to
loans
such as we have experienced during the past four years is thus so as to permit it themake whichin aid of our commerce,
supplementing
may be given by the
always a period of great apparent prosperity, and a period Treasury on direct loans aidforeign governments and in a
to
of falling prices and of the contraction of credits is always measure relieving the Treasury of demands for such loans.
a period of depression. The retardation of the process of
I am sure that your committee will wish to discuss all of
readjustment by artificial means can only increase the
evils inherent in the situation. Buying will not begin these matters fully with me, and I shall not burden you at
and activity will not set in until the community at large this time with a fuller statement of my views concerning
is satisfied that prices have reached bedrock. I am very them.
I am sending a copy of this letter to Senator Simmons.
hopeful that measures now under discussion may result in
Very truly, yours,
the rapid acceleration of the readjustment, and I am firmly
(Signed)
CARTER GLASS.
convinced that if that be done America has before her a
new period of great and growing prosperity. I am even
sanguine enough to believe that it is within the range of
On the date the armistice was signed the United States
the possible that so much may have been accomplished was in the fortunate position of having outstanding no

In order that any of you who may not have had an
opportunity to read it may be familiar with the general
considerations which led me to propose legislation in the
form now before you as a draft of a fifth Liberty bond bill
I will ask you to bear with me while I read my letter of
February 10 to Mr. Kitchin.




MARCH 1,

1919.

FEDERAL EESEKVE BULLETIN.

short-time indebtedness, excluding war saving certificates,
that was not covered and more than covered by the deferred installments on subscriptions for the bonds of the
fourth Liberty loan. But expenditures in November,
December, and January, according to the Treasury daily
statement, exclusive of transactions in the principal of
the public debt, amounted to §5,958,576,114.24, or at the
rate of nearly $2,000,000,000 a month, and the amount of
Treasury certificates of indebtedness outstanding on
January 31 was $4,798,064,800, of which 83,225,099,500
were issued in anticipation of the Victory Liberty loan.
Expenditures for the first seven months of the fiscal year
ending June 30, 1919, exclusive of the principal of the
public debt amounted to $12,594,498,537.96. It is apparent that unless there should be a very radical reduction in
expenditures during the last five months of the current
fiscal year Secretary McAdoo's hope that the expenditures
for the whole fiscal year would be in the neighborhood of
only $18,000,000,000 must be disappointed. I have not
as yet been able to obtain revised estimates from the War
Department and other departments of the Government of
their probable expenditures. The cash disbursements
during the first ten days of the current month of February
have shown a gratifying decrease, but the knowledge that
heavy payments on the settlement of informal Army contracts are being held in abeyance awaiting the enactment
of appropriate legislation and that protracted discussion
concerning the terms of peace will necessitate the continuance of large military expenditures abroad; the continuance of large expenditures by the Shipping Board;
the Navy program, and the guaranties and commitments
of the Food Administration prevent me from looking
forward to any great reduction in cash disbursements in
the early future.
With these things before us and with a floating debt of
nearly $5,000,000,000, increasing at the rate of, say,
§1,400,000,000 a month, you will, I know, not be surprised
by my recommendation of an increase in the authorized
amount of bonds.
The amount of bonds authorized and unissued under
existing Liberty bond acts is slightly in excess of
$5,000,000,000; the authorization under the first bond act
having been $2,000,000,000, and under the second, third,
and fourth acts §20,000,000,000, and approximately
$17,000,000,000 of bonds having been issued under the
four acts. It is needless to say that the Treasury does
not contemplate the issue in connection with the Victory Liberty loan of any such amount of bonds as $10,000,000,000. It has, however, been the practice of the
Treasury since the second Liberty loan to allot the entire
amount of bonds subscribed for. In order to be in a position to do this in connection with the Victory Liberty loan
if it should then be thought wise to follow that policy, it is
necessary to authorize some increase in the amount of
bonds authorized to be issued. In making the change it
seemed wise to suggest an increase to a figure which, so far
as at present information is available, would seem to
represent the maximum possible amount of the bonded
debt growing out of the war.




219

Not in addition to but as an alternative of the issue of
such bonds I have suggested the authorization of an issue
of notes limited to 810,000,000,000, and I should like to
suggest also an increase in the maximum amount of
Treasury certificates from $8,000,000,000 to §10,000,000,000.
It can not be too plainly stated that these three items of
$10,000,000,000 each are not cumulative. It is contemplated merely that authority should be given to the
Treasury to finance the existing and expected indebtedness either by the issue of Treasury certificates or by the
issue of notes or by the issue of bonds, it may be desirable to adopt all of these methods in succession. It may
be desirable to issue Treasury certificates in the first
instance and bonds to refund them, as has been done in
the past. It may be desirable to refund the Treasury
certificates into notes and the latter ultimately into bonds.
Conditions may be such that the issue of a series of notes
of a shorter maturity than is indicated in section 4 of the
second Liberty bond act as appropriate for a bond issue,
but of a longer maturity than that permitted for Treasury
certificates of indebtedness, would be desirable. Conditions in April might be such that it would be easy and
wise to issue a short-time note bearing a relatively high
rate of interest and carrying with it the privilege of conversion into bonds bearing interest at a lower rate and
having a longer maturity. This would make necessary
authority for the issue of both the notes and the bonds to
the full amount to be raised, but, of course, would not
necessitate the existence of both as outstanding indebtedness at any one time. On the other hand, it might be
desirable to make an alternative offer of bonds and notes,
leaving the subscriber a choice between the two. This
also would necessitate double authorization but only one
debt.
In respect to the notes and also in respect to bonds of
a maturity of 10 years or less, I have asked authority to
determine the interest rate as the situation may develop.
I am by no means convinced that conditions will be such
in April as to necessitate an increase in the interest rate
over that provided in existing law to an important extent
if at all, yet if I were obliged to determine now what is
the lowest rate at which I could undertake with certainty
to finance the requirements of the Government when the
issue is offered in April I should be obliged to name a
maximum rate much higher than that which, if developments are as favorable as I expect they will be in the
interval, will, I hope, be sufficient to float the loan. There
is not, I venture to say, a solvent banking house in America
which would enter into a firm obligation to-day to purchase in April any important amount of securities of any
character at any price whatever—certainly not at a price
which failed to make such an allowance for contingencies
in the interval as would be regarded as prohibitive by the
borrower. Yet that is exactly what the Congress would
require the Secretary of the Treasury to do if it were to
fix the interest rate to-day. I can not undertake the
responsibility of saying now at what rate the bonds or
notes may be sold in April, and if you were to-day to fix

220

FEDERAL RESERVE BULLETIN.

a maximum rate such as to be sufficient in any possible
contingency you would by that very act tend to force the
adoption of that maximum rate when the loan is offered.
No Liberty loan has ever been sold at a lower rate than
the maximum fixed by the act under which it was issued.
On the other hand, in the second Liberty bond act, which
was approved nearly a year and a half ago, you conferred
upon Secretary McAdoo authority to issue Treasury
certificates of indebtedness without limit as to the rate
of interest, and he and I have been able to maintain the
rate of 4J per cent for such certificates during a full year,
including the period when our war prospects were at their
darkest and the recent period when the cessation of hostilities has made the problem of selling Government
securities most difficult. The floating debt, represented
by Treasury certificates now outstanding and to be issued
in the interval before the Victory Liberty loan is offered,
must be refunded, and bonds or notes must be sold to an
amount sufficient to accomplish this purpose. To withhold from the Secretary of the Treasury the power to
issue bonds or notes bearing such rate of interest as may be
necessary to make this refunding possible might result in
a catastrophe. To specify in the act the maximum
amount of interest at a figure sufficient to cover all contingencies would be costly, because the maximum would
surely be taken by the public as the minimum.
I have suggested that authority be conferred upon the
Treasury to issue bonds or notes payable at a premium at
maturity believing that it might be found desirable to issue bonds following the lines of the British national war
bonds which have been issued so successfully during the
past year and a half. Payment of a slight premium at
maturity would have a number of advantages over an increase in the nominal interest rate: (1) it would carry
with it an inducement to saving and to the retention of
the bonds; (2) it would tend to limit depreciation in the
market; (3) it would probably have a somewhat less injurious effect upon the market value of existing issues of
Liberty bonds and other securities than a flat increase in
the interest rate; and (4) it would make possible more
exact computation of the effective interest rate to be
borne by the bonds or notes than is possible where bonds
are issued and paid at par. A fractional semiannual interest payment involves infinite annoyance to bond
holders, banks, and the Government itself, which would
be to a great extent avoided by payment of a small premium only once at maturity. I do not undertake to say
that it will be found wise to issue bonds or notes payable
at a premium but I do say that the Treasury should be
equipped with authority to do so If that be found expedient.
I have asked for authority to determine the exemptions
from taxation to be carried by the bonds, notes, and Treasury certificates. Such exemptions could not be greater
than that conferred by the Congress in the first Liberty
bond act. It would not be less than exemption from
State and local taxes. Within these limits I believe it is




MARCH 1,1919,

expedient that the Treasury should have authority to
determine the exemptions. As a matter of principle, I
agree entirely with Secretary McAdoo that exemptions
from taxation even in respect to the Government's own
bonds are undesirable. He, however, found it necessary
as a practical matter to modify those views to meet the
exigencies of the situation in connection with the fourth
Liberty loan. The bonds of the second Liberty loan carried a higher rate of interest than those of the first, the
bonds of the third carried a higher rate of interest than
those of the second, and the bonds of the fourth carried
greater exemptions from taxation than those of the third.
That something must be done to make the bonds or notes
of the Victory Liberty loan more attractive than their
predecessors is apparent. Whether the needed attraction
should be found in increased interest rate or in additional
exemptions from taxation or by a combination of both
would be unwise to determine now. In the discussion of
the pending revenue bill and of the supplement to the
fourth Liberty bond act Secretary McAdoo called attention to the relation between income taxes and the rate of
interest on the bonds. In his letter of June 5, 1918, to
Mr. Kitchin concerning the revenue bill Secretary McAdoo
wrote as follows:
"This brings me to another consideration of great
moment in the Government's financial plans. I hope that:
it will not be necessary further to increase the interest rate
on Government bonds. The number of subscribers to the
three Liberty loans aggregate 30,000,000. The people who
subscribed are impatient of those who have not. Various
plans have been urged upon me for forcing the people to
buy Liberty bonds. The man of small means who buys
a $100 bond wants his neighbor to do so, too. There is" a
popular demand also for high taxes upon war profits.
There is also a popular demand that all the people should
contribute to financing the war. There should, therefore,
be a substantial increase in the normal income tax rate
and a higher tax should be levied upon so-called unearned
than on earned incomes. Income derived from Liberty
bonds would be exempt from this taxation, and the relation between income from Liberty bonds and income
from other securities would be readjusted without increasing the rate of interest on Liberty^ bonds. It would not
tax the patriotic purchasers of Liberty bonds on their
holdings, but it would weigh heavily upon the shirkers
who have not bought them. It would make the return
from Liberty bonds compare favorably with the return
from other securities. It would give the Government's
bonds an essential and necessary advantage over those of
corporate borrowers, and would very greatly decrease the
relative advantage which State and "municipal bonds now
enjoy through the total exemption which they carry. It
would produce a gradual readjustment of the situation in
the investment markets instead of an abrupt one, as would
be the case if the interest rate on Liberty bonds should be
increased.
"A normal tax falls upon all alike. Therefore, as I
pointed out in my statement before the Ways and Means
Committee last summer, there is not the same objection
to the exemption from normal income taxes as there is to
the exemption from surtaxes. A substantial increase in
the normal income tax is the soundest and surest way of
stabilizing the price of Government bonds. If we have
to increase the interest rate on Government bonds, the
increased rate may continue for 10 to 30 years and some of

MARCH 1,

the bonds which we have issued will go to great premiums
not long after the war is over. If we make the bonds at
the present rate more attractive by increasing the normal
tax, then the decrease in taxation which will follow the
close of the war will automatically adjust the situation.
I believe that to stabilize the price of Government bonds
by first increasing and subsequently reducing the normal
income taxes, from which the holders of these bonds are
exempt, is sound finance and sound economics.
"There is another feature deserving of consideration.
We are asking the people to finance this war. and we are
offering them an investment paying 4-1 per cent interest.
The people have responded wonderfully to this appeal.
In the last Liberty loan campaign 17,000.000, approximately, subscribed. There is a wide-spread feeling that
many people who are able to do so, especially those who
are making vast profits out of the war, are not doing their
part, either in the purchase of Liberty bonds or in the payment of taxes—that they are investing in corporate stocks
and bonds producing high, returns instead of in the bonds
of their own Government producing reasonable returns,
when the first duty of patriotism and self-protection demands that they shall buy Government bonds for the protection of the Nation in its hour of peril.
'' There is a natural feeling among the masses of the peoplo that taxation upon incomes and upon war profits should
be high enough to bring the return from corporate investments more nearly on a parity with the return from Government bonds; that the Government should not be forced
to compete for credit with war industries, which are profiting abnormally and which, unless restrained by the exercise of sound and just taxation, will constantly add to the
difficulties of the people of the United States in their effort
to supply the Government at reasonable interest rates
with the credit it needs to fight successfully this war for
liberty."
And on September 5, 1918, Secretary McAdoo wrote to
Mr. Kitchin concerning the supplement to the fourth
Liberty bond bill as follows:
"The delay in the enactment of the tax bill, the fact
that the rates of income surtaxes, to which the interest on
Liberty bonds, except the first Liberty loan, is subject,
will be higher, and the rate of normal income tax on unearned income will be lower, than I had contemplated,
materially affect the prospects of the fourth Liberty loan.
-K

*

-X-

-X-

X-

"The market price of Liberty bonds, which responded
favorably to the suggestion of an increased normal tax,
from which the bonds will be exempt by their terms, was
depressed by the newspaper reports of a greatly increased
surtax, to which the interest on the bonds will be subject.
•x-

-K

-A-

-:$•

-x-

"Last year I had the privilege of explaining to you and
your colleagues on the Ways and Means Committee very
fully the reasons why I advocated making the income
from Liberty bonds subject to income surtaxes. I still
believe that' that course was wise and that the arguments
advanced in favor of it were sound. It will not do, however1, to press any theory, however sound, to an extremity,
and it is obvious that, as a practical matter, we can not
keep the interest rate on Government bonds stationary,
or substantially so, and continue indefinitely to increase
the surtaxes, to which the income from those bonds is subject, without at the same time limiting the market for
Liberty bonds to those who have little or no surtaxes to
pay.
*




221

FEDEBAX, KESEBVE BULLETIN.

1919.

*

#

*

-X

"In order to give the numerous small holders of Liberty
bonds the advantage of a market upon which they may
sell their bonds in case of necessity, and also to attract
subscriptions from the great number of investors of ample
means, but not of great wealth, it will be necessary immediately either to increase the interest rate or to neutralize
the increased surtaxes by freeing the bonds to a limited
extent from such taxes.
-s

•*

*

#

#

" I am influenced in this determination, by the fact that
it continues necessary to sell Liberty bonds in competition with billions of dollars of bonds of the United States.
the various States and municipalities, which are wholly
exempt from surtaxes, as well as from all forms of taxation,
so that the person whose income is subject to surtaxes is
apt to make a comparison of the income return from the
Liberty bonds which he is asked to subscribe for, not
with the income return from corporation and other securities such as carry no exemption from taxation, but
with the income return from wholly exempt bonds of the
United States and the various States and municipalities.
Under the existing, state of the Constitution and laws, such
a comparison can not be avoided. In these circumstances
we must find a middle ground between the sound view
which would refuse all exemptions from surtaxes and the
practical necessity of taking into account the fact that such
exemptions will in any eY,ent be gained, as surtaxes are
steadily increased, by shifting funds into governmental,
State, and municipal bonds, the income from which is
exempt from surtaxes as well as from normal taxes.
" In granting such exemption, I think appropriate provision should be made to the end that those who subscribe
for bonds of the fourth Liberty loan may, to the extent of
a specified portion of their holdings, participate in the
exemption in respect.to bonds of the first Liberty loan
converted, the second Liberty loan converted and unconverted, and the third Liberty loan."
The considerations which led Secretary McAdoo to
recommend increased exemptions from taxation in September are more potent now. The Capital Issues Committee,
which had exercised a restraining influence upon the
issue of State and municipal securities, has ceased to
function and such securities are now being issued without
restriction. The Treasury itself has found it necessary
to resume the sale of bonds of the Federal land banks
and these must continue to be issued in increasing amounts
carrying as they do exemption from all taxation. Those
who are subject to higher rates of surtaxes will escape
taxation at those rates to a very considerable degree by
investment in the $3,000,000,000 or 810,000,000,000 of
existing securities carrying exemption therefrom and the
new securities of the same character continually being
offered. They will seek also for investment more speculative securities carrying a very high nominal income rate.
Low-rate taxable bonds have no attraction for them.
The cessation of hostilities, the discontinuance of war
work and war wages have greatly decreased the investment power of the millions of patriotic Americans of small
means who subscribed so liberally to the second, third,
and fourth Liberty loans. They will, I know, subscribe
and subscribe largely to the Victory Liberty loan. But
whether it be in their power tc subscribe as largely as they

222

FEDERAL RESERVE BULLETIN.

have subscribed for bonds of other loans I do not know.
In any event it is essentially in their interest that an
obligation be devised which will not only be attractive
to them in the first instance but which will have such
characteristics as will tend to insure the maintenance
of its market price after the drive is over. I can not
now determine what those characteristics should be, but
I regard it as essential that I should be free to enlarge the
exemptions from taxation if, when the time comes to
determine the terms of the new issue, that should seem
desirable.
I believe it essential that in connection with the issue
of the Victory Liberty loan a plan should be devised
which will fully protect the interests of the holders of
the existing Liberty loan bonds. As a matter of public
policy it would not be wise nor right to make a gift to the
holders of those bonds, but I believe it will be wise and
proper to confer upon those holders of the old bonds who
subscribe to the new loan additional exemptions from
taxation under terms and conditions and within limitations
to be determined. Such a course would not only be a
great aid to the sale of the obligations of the new loan but
should be effective to improve the market price of existing
issues which has suffered from heavy liquidation due, I
believe, in large measure, to the changed conditions
following the cessation of hostilities.
I have recommended that the holders of war-savings certificates be exempt from taxation to the same extent as the
holders of bonds of the first Liberty loan. These certificates are of short maturity. The maximum amount which
may be held by anyone is limited to $1,000. The interest
is not payable until maturity or earlier redemption and in
the hands of holders who await the date of maturity before
collecting their certificates will in any event therefore
escape war taxation. The effort has been and is being
made to get the widest possible distribution of these certificates among the people of the United States. I believe
the loss in revenue from this exemption will be negligible
and that the conferring of the exemption will make the
certificates what they ought to be, clearly the most desirable security issued by the Government, for I feel entirely confident that the Government will not, under any
conditions which can now be foreseen, ever have to issue
any security" more attractive than an obligation bearing
interest at the rate of 4 per cent per annum, compounded
quarterly, and exempt from all taxation.
I have suggested that Liberty bonds and War Finance
Corporation bonds held abroad should be exempt from all
taxation. This is an enlargement of a provision already
adopted by the Congress in relation to such bonds payable
i n foreign moneys. The early cessation of hostilities put
an end to efforts to sell obligations payable in foreign
moneys before any important amount had been sold. I
believe substantial amounts would be invested in the
United States Government bonds of the various Liberty
loans by persons in neutral countries with which the exchanges are now adverse to the United States if such in-




MARCH 1,1919.

vestors could be assured of exemption from taxation in the
United States. This would supply a number of desirable
markets for the secondary distribution of Liberty bonds
and would have a beneficial effect upon those exchanges
which are now adverse.
As to the extension of the privilege of converting the 4
per cent Liberty loan bonds into 4-J per cent bonds, I expressed myself fully in my letter of January 15 to Mr.
Kitchin, as follows:
"WASHINGTON, D. C , January 15, 1919.
DEAR MR. KITCHIN: The total amount issued of 4 per

cent bonds of the first Liberty loan converted was $588,318,450, of which there remain outstanding as of December
31, 1918, in the hands of the public, unconverted, after deducting bonds purchased and retired by means of the bond
purchase fund and bonds held bv the War Finance Corporation, $200,680,900.
The total amount issued of 4 per cent bonds of the second
Liberty loan was S3,807,882,350, of which there remain
outstanding as of December 31, 1918, in the hands of the
public, unconverted, after deducting bonds purchased by
means of the bond purchase fund and bonds held by the
War Finance Corporation. 8868,999,900.
Total 4 per cent Liberty bonds outstanding as of December 31, 1918, $1,067,680,800.
Under the terms of the contract with the holders of these
bonds the conversion privilege expired on November 9,
1918, six months after it arose. Every effort was made by
Secretary McAdoo to give, publicity to the fact of the conversion privilege and its approaching expiration, and that
privilege remained open for six months. My belief is that
those who did not avail themselves of the conversion privilege within the period fixed by the terms of the contract
which the Government made with, them fall among the
class of small holders who are unaccustomed to bond investments and who, on account of the very wide distribution of Liberty loan bonds were not reached by general
publicity, and could not except in the case of registered
bonds, be reached by department circular. Insistence
upon the letter of the contract will result in loss to a group
of patriotic bondholders toward whom a special duty of
consideration exists. The United States has suffered
nothing by their failure to act promptly in the exercise
of the conversion right and it is my judgment that the
conversion privilege should be extended. I propose to
submit to your committee in connection with the bond bill
which it will be necessary for me to present at an early
date for your consideration, a provision intended to extend
the conversion privilege so that the higher rate of 4J per
cent shall be effective from the semiannual interest payment date next succeeding the date of presentation for
conversion.
I am writing this letter to you now and giving it to the
press in order that the holders of these bonds may be informed of my views concerning the matter.
I am sending a copy of this letter to Senator Simmons.
Very truly, yours,
(Signed)
Hon. CLAUDE KITCHIN,

CARTER GLASS.

Chairman Committee on Ways and Means,
House of Representa lives.
I believe that immediate steps should be taken to set
up a sinking fund for the retirement of the war debt.
I have suggested the creation of a 2-J per cent cumulative
sinking fund calculated to retire the whole debt, so far
as I can now estimate it, within a period of some 25 years.

MARCH 1,

1919.

FEDERAL RESERVE BULLETIN.

A cumulative sinking fund has the advantage of making
the amount to be set aside for the service of the debt
both on account of interest and sinking fund substantially
a permanent item at a fixed figure until the debt is retired.
The maturities and redemption dates for existing Liberty
loan bonds have been arranged with great wisdom and
thoughtfulness by Secretary McAdoo, the bonds of the
second loan being redeemable during the period between
1927 and 1942, those of the third loan being payable
in 1928, those of the fourth loan being redeemable during
the period between 1933 and 1938, and those of the first
loan being redeemable during the period between 1932
and 1947. Secretary McAdoo announced before he
retired, and 1 have confirmed the announcement that the
"Victory Liberty loan will be of short maturities. Assuming that these maturities will cover the period between
one year after the termination of the war and the year
1927 it will always be in the power of the Government
to use the sinking fund effectively for the redemption
of bonds of the Liberty loans.
I should accompany the bill with a recommendation
for the repeal of the existing paper sinking funds had not
this recommendation been repeatedly made in the annual
reports of the Secretary of the Treasury without action.
1 have with me and would like to make a part of my
statement the following:
(1) Statements showing classified receipts and disbursements, exclusive of the principal of the public debt,
by months from March 1, 1917, to January 31, 1919, as
published in daily Treasury statements.
(2) Memorandum concerning the existing authorizations for issues of liberty bonds showing the balance
of authority under existing law.
(3) Statement showing the interest-bearing debt of the
United States as of January 31, including the issue of
Treasury certificates which opened on January 30, the
final figures for which were not received until a week
or 10 days later.
(4) Statement of the bonds purchased by the Treasury
for the bond purchase fund to January 31, 1919.
(5) Statement showing the final allotment of subscriptions to the fourth Liberty loan corrected to February 1.
(6) Copy of the British war loan act of July 30, 1918.
This latter, I think, will interest you as bearing upon
the extent of the discretion which I have asked the
Congress to repose in me under the unusual circumstances
now confronting the Treasury. Following is the authority
conferred upon the British Treasury by the Parliament:
(1) Any money required for the raising of any supply
granted to His Majesty for the service of the year ending
the thirty-first day of March, nineteen hundred and
nineteen, and, in addition, of a sum not exceeding two
hundred and fifty million pounds, or for the raising of any
sum required for cancelling securities or treasury bills
under the powers of this act, may be raised in such manner
as the Treasury think fit, and for that purpose they may
create and issue any securities by means of which anypublic loan has been raised or may be raised, or such




223

other securities bearing such rate of interest and subject
to such conditions as to repayment, redemption, or
otherwise, as they think fit.
The bill contains two provisions designed to meet a
situation which is of vital importance) both to the United
States and the European allies. The first of these provisions authorizes loans to the allied Governments to provide
for purchases in the United States for export therefrom,
for expenditures in the United States in connection with
such purchases and for the payment of interest to the
United States, subject to two limitations—one that the
credits shall cease one year after the termination of the war
and the other that the total amount advanced shall be
limited to the amount remaining unexpended of the sum
authorized by previous legislation to be loaned to foreign
governments for war purposes.
The second provision authorizes the War Finance Corporation to make advances under proper restrictions to
exporters not to exceed at any one time the sum of
$1,000,000,000.
These proposals are designed to meet partially the
situation growing out of the temporary exhaustion of the
European allies as regards foreign commerce and finance
and out of the transition of the United States from a
debtor to a creditor nation which has been brought about
by the war.
Destruction of property by the enemy, demands on
the man power and manufacturing facilities of the nations
and the limitations imposed by shipping requirements
upon the supplies of raw materials have combined to
reduce the commercial production of the European allied
countries available for export to small proportions and at
the same time the needs of the war have compelled them
to make imports on a scale far transcending anything
known before the war.
During the years 1917 and 1918 our foreign trade showed
a net balance of $6,400,000,000 (or $3,200,000,000 a year)
and our trade with Great Britain, France, and Italy alone
accounted for $6,235,000,000 of this balance. In the year
immediately preceding the opening of the European war,
i. e., the year ending June 30, 1914, our total balance of
trade was $471,000,000, and our balance with the three
countries named $337,000,000. The trade figures for
Great Britain for 1918 (up to November) show that its
exports for the year were in money values smaller and in
quantity far smaller than in the preceding year, and her
total trade for the 11 months ending November showed
an excess of imports of practically $3,500,000,000.
The necessity of foreign purchases before we entered
the war has greatly impaired the resources of the European
allies available to meet an adverse balance of trade, so that
to-day they can not import goods they need without
financial assistance. The Treasury has insisted that, as
far as possible, this finance should be secured through
private channels; but the United States, before the war,
was an importer of capital rather than an exporter, and it

224

FEDERAL RESERVE BULLETIN.

is not to be expected that our people will adjust themselves
to the changed situation so rapidly as to make it possible
for all, or even the greater part, of the needs of these
countries to be met privately. Investment in foreign
securities was practically unknown in the United States
before the commencement of the European war, and the
habit is one which can not be widely extended in a short
period of time. Some measure of governmental aid
during the transition period is therefore necessary if we are
to be able to export the food supplies and other commodities which European allies desire to secure and which
it is to our interest to sell them.
In asking the extension of the powers of the War Finance
Corporation, it has been my thought to avail of methods
approximating as nearly as possible to commercial practice, and to enable the funds to be secured without resort
to the Treasury or the issue of Liberty bonds. The War
Finance Corporation will of course, if the legislation is
enacted, secure funds by the issues of its bonds to the
public which it is already authorized to make.
I do not feel, however, that this action alone will meet
the situation. Our exporters will, of course, be liable to
the War Finance Corporation for all advances made by it,
and must limit their commitments, however well secured
they may be. Moreover, in some cases our Government
will either directly, or in effect, be the vendor. The machinery of the War Finance Corporation is not applicable
to such cases. It is anticipated that substantial sales of
property of the United States Government now in Europe
to foreign governments can be effected to the mutual advantage of the governments concerned. The materials
referred to include railroad materials and equipment, port
and dock equipment, and other property of the American
Expeditionary Forces. Again, the Government as guarantor of the price of wheat has a direct interest in foreign
sales of wheat.
The interest payments due from the several governments on their obligations held by the United States now
aggregate over $200,000,000 each half year and it is probable that few of the governments at the present time can
meet these payments without assistance. The requirements for reconstruction of Belgium and northern France
can not yet be fully determined, but it is probable that
some of them will be such as can not be met without
Government loans.
For these reasons I urgently ask the authority to broaden
the purposes for which the loans to foreign governments
may be made. I do not ask an increased appropriation,
and it would not be my purpose to avail of the authority
where commercial loans or the powers of the War Finance
Corporation could, in my judgment, be used to meet the
requirements. I do, however, feel very strongly that
before the Congress adjourns powers should be given sufficiently broad to enable the situation to be dealt with. We
are creditors of the European allies to the extent of over
$8,000,000,000, and we have a very real interest in the




MARCH 1,1919.

early restoration of their economic life and their ability to
enter upon foreign trade. These allies include the countries to which for many years the greatest volume of our
exports has flowed, and if our foreign trade is to continue
and to grow, our trade with these countries must continue
to be a large part of the total. Business in the United
States is now hesitant and unemployment is growing.
Upon the maintenance of our exports depends in a large
measure whether this situation shall Income aggravated
or relieved.
I am convinced that exports must be greatly curtailed
unless the Government for the present emergency (and
only during that emergency) lends financial aid along the
lines I have indicated. I Adew with the greatest concern
the task of raising the funds needed by the Government
during this year, but I am nevertheless willing somewhat
to increase those needs for this purpose, being satisfied that
the resultant effects will be such, that the task as a whole
will thereby be lightened.
Authorizations for issues of Liberty bonds.
The first Liberty bond act (Apr. 24, 1917)
authorized new issues of bonds of not
to exceed
$5,000,000,000
The same act authorized the issue under
the terms of such act of the unissued bonds
previously authorized, as follows:
For construction of Panama Canal (act
Aug. 5, 1909), but including the unissued Panama Canal bonds authorized
to be issued for the nitrate plant (act
June 3, 1916), and for the Shipping
Board (act Sept. 7, 1916), the amount
of issued postal-savings bonds being deducted from, the amount authorized,
approximately
225,000,000
For extraordinary expenditures (act Mar.
3, 1917)
100, 000,000
For expediting naval construction (act
Mar. 4, 1917)
150.. 000,000
And in addition authorized an additional
amount to provide for payment of loan
of 1908-1918
63, 945,460
Total authorization under first Libertv
bond act
". 5,538,945,460
First Liberty loan subscriptions allotted. 2,000,000,000
Balance bonds unissued under first Liberty bond act
3,538, 945,460
The second Liberty bond act (Sept. 24,
1917) authorized the issue of bonds (in
addition to the 12,000,000,000 issued
under the first Liberty bond act) not to
exceed in the aggregate
7,538,945,460
and provided that of such sum $3,538,945,460 should be in lieu of unissued
bonds authorized by the first Liberty
bond act.
The third Liberty bond act (Apr. 4, 1918)
increased the authority for the issue of
bonds to
\
12,000,000,000
and
—
The fourth Liberty bond act (July 9,1918)
further increased such authority to
20,000,000,000

MARCH 1,

Issues of Liberty bonds under second
Liberty bond act, and under such act as
amended:
Subscriptions allotted—
Second Liberty
loan
'. S3. 807, 891, 900
Third L i b e r t y
loan
\ 4,176, 516, 850
Fourth Liberty
loan
". 6,993,073,250
-§14,977, 482, 000
Balance authority under existing
law for issues of Liberty bonds.. 5,022, 518.000
FEBRUARY 12,

1919.

Fourth Liberty loan—Final allotment of subscriptions.
[Corrected to Feb. 1, 1919.]
Federal Reserve district:
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas'Citv
Dallas
1
San Francisco.
Treasury
Total
1

Interest-bearing debt of the United States, Jan. 81,1919.
[Preliminary figures, subject to correction.]

RONDS.

Consols of 1930
Loan of 1925
Panamas of 1916-1936
Panamas of 1918-1938
Panamas of 1961
Conversion bonds
Postal-savings bonds
First Liberty loan of 1932-1947
First Libertv loan of 1932-1947, converted
First Liberty loan of 1932-1947, converted
Second Liberty loan of 1927-1942
Second Liberty loan of 1927-1942, converted
Third Liberty loan of 1928
Fourth Liberty loan of 1933-1938

Pr.cfJ
2 '
4
2
2
3
3

8599,724,050
1.18,489,900
48". 954,180
25,947,400
50,000.000
28,894', 500
11,349,960
1,413,805,200
198.865,200
376;129,100
860,365.100
2,752.153; 400
4,055;687,050
6,917,000,000
17,457,365,040

TREASURY CERTIFICATES.

Certificates of indebtedness:
In anticipation of Victory Liberty l o a n Series V. A (Dec. 5, 1918-May 6, 1919)....
Series V. B (Dec. 19,1918-May 20,1919)..
Series V. C (Jan. 2, 1919-June 3, 1919)....
Series V. D (Jan. 16, 1919-June 17, 1919).
4-1
Scries V. E (Jan. 30, 1919-Jaly 1, 1919)...
In anticipation of internal-revenue t a x e s Tax series of 1919 (Aug. 20, 1918-July 15,
1919)
'.
4
Series T. (Nov. 7, 1918-Mar. 15, 1919).... ! 4fc
Series T. 2 (Jan. 16, 1919-June '17, 1919).. : 4-i
Fittman Act
2"
Special issues
, 2-4J
War-savings certificates (cash receipts)....

613,438,000
572,494,000
751,684.500
600,1011500
687,381.500

|

66,811,000
794,172,500
297;775,000
.123,008,000
291,198,800
4,798,064,800
1,011,609,242

TOTAL INTEREST-BEARING DEBT.

17,457.365,040
4,798', 064,800
1,01i;609,242

Bonds
Treasury certificates
War-savings certificates.

23,267,039,082
DIVISION OP LOANS AND CURRENCY,

February 12, 1919,
Bond purchase fund.
Bonds purchased to January 31,1919:
First Liberty loan converted 4?s
Second Liberty loan 4's
Second Liberty loan converted 4Vs
Third Liberty loan 4J's
Fourth Liberty loan 4 V s . . . .
Total

Par amount.
$656,000

S63,050,000
132,295,000

195,345,000
115,935,500
35,000,000
346,936,500

108597—19

6

8632,124,850
2,044,931,750
598,763,650
701,909,800
352,685,200
217,885,200
969,209,000
295,340,250
242,046,050
295,951,450
146,090,500
462,250,000
1 33,885,550

.,
6,993,073.250
Includes Army subscriptions; subject to change.

Victory Liberty Loan Act,

-p ace Amount out1 t0
" *
standing.

TitJc.




225

FEDERAL EESEEVE BUMJETLTST.

1919.

Following is the text of the Victory Liberty
Loan Act which was signed by the President
on March 3, 1919:
[H. B. 16136.]
AN ACT To amend the Liberty Bond Acts and the War Finance Corporation Act, and for other purposes,

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That
the Second Liberty Bond Act is hereby amended by adding thereto a new section to read as follows:
"SEC. 18. (a) That in addition to the bonds and certificates of indebtedness and war-savings certificates authorized by this Act and amendments thereto, the Secretary
of the Treasury, with the approval of the President, is
authorized to borrow from time to time on the credit of
the United States for the purposes of this Act, and to meet
public expenditures authorized by law, not exceeding in
the aggregate §7,000,000,000, and to issue therefor notes
of the United States at not less than par in such form or
forms and denomination or denominations, containing such
terms and conditions, and at such rate or rates of interest,
as the Secretary of the Treasury may prescribe, and each
series of notes so issued shall be payable at such time not
less than one year nor more than five years from the date
of its issue as he may prescribe, and may be redeemable
before maturity (at the option of the United States) in
whole or in part, upon not more than one year's nor less
than four months' notice, and under such rules and regulations and during such period as he may prescribe.
"(b) The notes herein authorized may be issued in any
one or more of the following series as the Secretary of
the Treasury may prescribe in connection with the issue
thereof:
"(1) Exempt, both as to principal and interest, from
all taxation (except estate or inheritance taxes) now or
hereafter imposed by the United States, any State, or any
of the possessions of the United States, or by any local
taxing authority;

226

FEDERAL RESERVE BULLETIN.

1
' (2) Exempt, both as to principal and interest, from
all taxation now or hereafter imposed by the United
States, any State, or any of the possessions of the United
States, or by any local taxing authority, except (a) estate
or inheritance taxes, and (b) graduated additional income
taxes, commonly known as surtaxes, and excess-profits
and war-profits taxes, now or hereafter imposed by the
United States, upon the income or profits of individuals,
partnerships, associations, or corporations;
"(3) Exempt, both as to principal and interest, as provided in paragraph (2); and with an additional exemption
from the taxes referred to in clause (b) of such paragraph,
of the interest on an amount of such notes the principal of
which does not exceed $30,000, owned by any individual,
partnership, association, or corporation; or
" (4) Exempt, both as to principal and interest, from all
taxation now or hereafter imposed by the United States,
any State, or any of the possessions of £he United States,
or by any local taxing authority, except (a) estate or
inheritance taxes, and (b) all income, excess-profits, and
war-profits taxes, now or hereafter imposed by the United
States, upon the income or profits of individuals, partnerships, associations, or corporations.
"(c) If the notes authorized under this section are
offered in more than one series bearing the same date of
issue, the holder of notes of any such series shall (under
such rules and regulations as may be prescribed by the
Secretary of the Treasury) have the option of having such
notes held by him converted at par into notes of any other
such series offered bearing the same date of issue.
"(d) None of the notes authorized by this section shall
bear the circulation privilege. The principal and interest
thereof shall be payable in United States gold coin of the
present standard of value. The word 'bond' or 'bonds'
where it appears in sections 8, 9, 10, 14, and 15 of this Act
as amended, and sections 3702, 3703, 3704, and 3705 of the
Revised Statutes, and section 5200 of the Revised Statutes
as amended, but in such sections only, shall be deemed to
include notes issued under this section."
SEC. 2. (a) That until the expiration of five years after
the date of the termination of the war between the United
States and the German Government, as fixed by proclamation of the President, in addition to the exemptions
provided in section 7 of the Second Liberty Bond Act in
respect to the interest on an amount of bonds and certificates, authorized by such Act and amendments thereto,
the principal of which does not exceed in the aggregate
§5,000, and in addition to all other exemptions provided in
the Second Liberty Bond Act or the Supplemc3nt to Second
Liberty Bond Act, the interest received on and after
January 1,1919, on an amount of bonds of the First Liberty
Loan converted, dated November 15,1917, May 9, 1918,
or October 24, 1918, the Second Liberty Loan, converted
and unconverted, the Third Liberty Loan, and the Fourth
Liberty Loan, the principal of which does not exceed
$30,000 in the aggregate, owned by any individual, partnership, association, or corporation, shall be exempt from




MARCH 1,1919.

graduated additional income taxes, commonly known as
surtaxes, and excess-profits and war-profits taxes, now or
hereafter imposed by the United States, upon the income
or profits of individuals, partnerships, associations, or
corporations.
(b) In addition to the exemption provided in subdivision (a), and in addition to the other exemptions
therein referred to, the interest received on and after
January 1, 1919, on any amount of the bonds therein
specified the principal of which does not exceed $20,000
in the aggregate, owned by any individual, partnership,
association, or corporation, shall be exempt from the taxes
therein specified: Provided, That no owner of such bonds
shall be entitled to such exemption in respect to the
interest on an aggregate principal amount of such bonds
exceeding three times the principal amount of notes of the
Victory Liberty Loan originally subscribed for by such
owner and still owned by him at the date of his tax return.
SEC. 3. That section 5 of the Second Liberty Bond Act,
as amended by section 4 of the Third Liberty Bond Act,
is hereby further amended by striking out the figures
"$8,000,000,000" and inserting in lieu thereof the figures
"$10,000,000,000."
SEC. 4. That section 3 of the Fourth Liberty Bond Act
is hereby amended to read as follows:
"SEC. 3. That, notwithstanding the provisions of the
Second Liberty Bond Act or of the War Finance Corporation Act or of any other Act, bonds, notes, and certificates
of indebtedness of the LTnited States and bonds of the War
Finance Corporation shall, while beneficially owned by a
nonresident alien individual, or a foreign corporation,
partnership, or association, not engaged in business in the
United States, be exempt both as to principal and interest
from any and all taxation now or hereafter imposed by the
United States, any State, or any of the possessions of the
United States or by any local taxing authority."
SEC. 5. That the privilege of converting 4 per centum
bonds of the First Liberty Loan converted and 4 per
centum bonds of the Second Liberty Loan into 4J per
centum bonds, which privilege arose on May 9, 1918, and
expired on November 9, 1918, may be extended by the
| Secretary of the Treasury for such period, upon such terms
and conditions and subject to such rules and regulations,
as he may prescribe. For the purpose of computing the
amount of interest payable, bonds presented for conversion
under any such extension shall be deemed to be converted
on the dates for the payment of the semiannual interest on
the respective bonds so presented for conversion next
succeeding the date of such presentation.
SEC. 6. (a) That there is hereby created in the Treasury a cumulative sinking fund for the retirement of bonds
and notes issued under the First Liberty Bond Act, the
Second Liberty Bond Act, the Third Liberty Bond Act,
the Fourth Liberty Bond Act, or under this Act, and
outstanding on July 1, 1920. The sinking fund and all
additions thereto are hereby appropriated for the payment
of such bonds and notes at maturity, or for the redemption

MARCH 1,

1919.

FEDERAL RESERVE BULLETIN.

or purchase thereof before maturity by the Secretary of
the Treasury at such prices and upon such terms and conditions as he shall prescribe, and shall be available until all
such bonds and notes are retired. The average cost of the
bonds and notes purchased shall not exceed par and
accrued interest. Bonds and notes purchased, redeemed,
or paid out of the sinking fund shall be canceled and
retired and shall not be reissued. For the iiscal year
beginning July 1, 1920, and for each fiscal year thereafter
until all such bonds and notes are retired there is hereby
appropriated, out of any money in the Treasury not otherwise appropriated, for the purposes of such sinking fund,
an amount equal to the sum of (1) 2J per centum of the
aggregate amount of such bonds and notes outstanding
on July 1, 1920, less an amount equal to the par amount
of any obligations of foreign governments held by the
United States on July 1, 1920, and (2) the interest which
would have been payable during the fiscal year for which
the appropriation is made on the bonds and notes purchased., redeemed, or paid out of the sinking fund during
such year or in previous years.
The Secretary of the Treasury shall submit to Congress
at the beginning of each regular session a separate annual
report of the action taken under the authority contained
in this section.
(b) Sections 3688, 3694. 3695, and 3696 of the Revised
Statutes, and so much of section 3689 of the Revised
Statutes as provides a permanent annual appropriation of
1 per centum of the entire debt of the United States to be
set apart as a sinking fund, are hereby repealed.
SEC. 7. (a) That until the expiration of eighteen months
after the termination of the war between the United States
and the German Government, as fixed by proclamation of
the President, the Secretary of the Treasury, with the
approval of the President, is hereby authorized on behalf
of the United States to establish, in addition to the credits
authorized by section 2 ot the Second Liberty Bond Act,
as amended, credits with the United States for any foreign
government now eng&ged in war with the enemies of the
United States, for the purpose only of providing for purchases of any property owned directly or indirectly by
the United States, not needed by the United States, or
of any wheat the price of which has been or may be guaranteed by the United States. To the extent of the credits
so established from time to time the Secretary of the
Treasury is hereby authorized to make advances to or
for the account of any such foreign government and to
receive at par from such foreign government for the amount
of any such advances its obligations hereafter issued
bearing such rate or rates of interest, not less than 5 per
centum per annum, maturing at such date or dates, not
later than October 15,1938, and containing such terms and
conditions, as the Secretary of the Treasury may from time
to time prescribe. The Secretary, with the approval of
the President, is hereby authorized to enter into such
arrangements from time to time with any such foreign
government as may be necessary or desirable for estab-




227

lishing such credits and for the payment of such obligations
before maturity.
(b) The Secretary of the Treasury is hereby authorized
from time to time to convert any short-time obligations
of foreign governments which may be received under the
authority of this section into long-time obligations of such
foreign governments, respectively, maturing not later
than October 15, 1938, and in such form and terms as the
Secretary of the Treasury may prescribe: but the rate or
rates of interest borne by any such long-time obligations
at the time of their acquisition shall not be less than the
rate borne by the short-time obligations so converted into
such long-time obligations; and, under such terms and
conditions as he may from time to time prescribe, to
receive payment, on or before maturity, of any obligations of such foreign governments acquired on behalf of
the United States under authority of this section, and,
with the approval of the President, to sell any of such
obligations (but not at less than par with accrued interest
unless otherwise hereafter provided by law), and to apply
the proceeds thereof, and any payments so received from
foreign governments on account of the principal of such
obligations, to the redemption or purchase, at not more
than par and accrued interest, of any bonds of the United
States issued under the authority of the First Liberty
Bond Act or Second Liberty Bond Act as amended and
supplemented, and if such bonds can not be so redeemed
or purchased, the Secretary of the Treasury shall redeem
or purchase any other outstanding interest-bearing obligations of the United States which may at such time be
subject to redemption or which can be purchased at not
more than par and accrued interest.
(c) For the purposes of this section there is appropriated
the unexpended balance of the appropriations made by
section 2 of the First Liberty Bond Act and hy section 2
of the Second Liberty Bond Act as amended by the Third
Liberty Bond Act and the Fourth Liberty Bond Act,
but nothing in this section shall be deemed to prohibit
the use of such unexpended balance or any part thereof
for the purposes of section 2 of the Second Liberty Bond
Act, as so amended, subject to the imitations therein
contained.
SEC. 8. That the obligations of foreign governments
acquired by the Secretary of the Treasury by virtue of
the provisions of the First Liberty Bond Act and the
Second Liberty Bond Act, and amendments and supplements thereto, shall mature at such dates as shall be determined by the Secretary of the Treasury: Provided, That
such obligations acquired by virtue of the provisions of the
First Liberty Bond Act, or through the conversion of
short-time obligations acquired under such act, shall
mature not later than June 15, 1947, and all other such
obligations of foreign governments shall mature not later
than October 15, 1938.
SEC. 9. That the War Finance Corporation Act is hereby
amended by adding to Title 1 thereof a new section, to
read as follows:

228

FEDERAL, RESERVE BULLETIN.

MARCH 1.1919.

"SEC. 21. (a) That the corporation shall be empowered ; fund until suck time as the corporation liquidates under
and authorized, in order to promote commerce with • the terms of this title. Such reserve fund shall, upon the
foreign nations through the extension of credits, to make direction of the board of directors, with the approve] of
advances upon such terms, not inconsistent with the the Secretary of the Treasury, be invested in bonds and
provisions of this section, as it may prescribe, for periods ; obligations of the United States, issued or converted after
not exceeding five years from the respective dates of such I September 24, 1917, or upon like directions and approval
advances:
j may be deposited in member banks of the Federal Reserve
"(1) To any person, firm, corporation, or association I System, or in any of the Federal reserve banks, or be used
engaged in the business in the United States of exporting : from time to time, as well as any other funds of the cortherefrom domestic products to foreign countries, if such i poration, in the purchase or redemption of any bonds issued
person, firm, corporation, or association is, in the opinion of j by the corporation. The Federal reserve banks are hereby
the board of directors of the corporation, unable to obtain •• authorized to act as depositaries for and as fiscal agents of
funds upon reasonable terms through banking channels. • the corporation in the general performance of the powers
Any such advance shall be made only for the purpose of : conferred by this title. Beginning twelve months after
assisting in the exportation of such products, and shall be * the termination of the war, the date of such termination
limited in amount to not more than the contract price to be fixed by a proclamation of the President of the United
therefor, including insurance and carrying or transporta- States, the directors of the corporation shall proceed to
tion charges to the foreign point of destination if and to the •liquidate its assets and to wind up it3 affairs, but the direcextent that such insurance and carrying or transOortation tors of the corporation, in their discretion, may, from time
charges are payable in the United States by such exporter to time, prior to such date, sell and dispose of any securities
to domestic insurers and carriers. The rate of interest or other property acquired by the corporation. Any balcharged on any such advance shall not be less than 1 per ance remaining after the payment of all its debts shall be
centum per annum in excess of the rate of discount for paid into the Treasury of the United States as miscellaninety-day commercial paper prevailing at the time of neous receipts, and thereupon the corporation shall be
such advance at the Federal reserve bank of the district in dissolved."
which the borrower is located; and
SEC. 11. That the short title of this act shall be "Victory
"(2) To any bank, banker, or trust company in the Liberty Loan Act."
United States which alter this section takes effect makes
Approved March 3, 1919.
an advance to any such person, firm, corporation, or association for the purpose of assisting in the exportation of
such products. Any such advance shall not exceed the
Amendments to the Federal Reserve Act.
amount remaining unpaid of the advances made by such
The bill embodying amendments to the
bank, banker, or trust company to such person, firm,
corpora.tionm or association for such purpose.
Federal Reserve Act was signed by the Presi"(b) The aggregate of the advances made by the corr dent on March 3, The text of the act follows:
poration under this section remaining unpaid shall never
(S. 5236.)
at any time exceed the sum of §1,000,000,000.
" (c) Notwithstanding the limitation o'i section 1 the AN ACT To amend sections seven, ten, and eleven of the Federal
advances provided lor by this section may bo made until Reserve Act, and section fifty-one hundred and seventy-two, Revised Statutes of the United States.
the expiration of one year after the termination of the waBe it enacted by the Senate and House of Representatives of
between the United States and the German Government
as fixed by proclamation of the President. Any such the United States of Ameirca in Congress assembled, That
advances made by the corporation shall be made upon the that part of the first paragraph of section seven of the Fedpromisory note or notes of the borrower, with full and eral Reserve Act which reads as follows^ "''After the aforeadequate security in each instance by indorsement, guar- said dividend claims have been fully met, all the net
anty, or otherwise. The corporation shall retain power to earnings shall be paid to the United States as a franchise
require additional security at any time. The corporation tax, except that one-half of such net earnings shall be paid
in its discretion may upon like security extend the time of into a surplus fund until it shall amount to forty per centum
payments of any such advance through renewals, the sub- of the paid-in capital stock of such bank," be amended to
stitution of new obligations, or otherwise, but the time for read as follows:
"After the aforesaid dividend claims have been fully
the payment of any such, advance shall not be extended
beyond five years from the date on which it was originally met, the net earnings shall be paid to the United States
as a franchise tax, except that the whole of such net earnmado."
SEC. 10. That section 15 of the War Finance Corpora- ings, including those for the year ending December thirtyfirst, nineteen hundred and eighteen, shall be paid into a
tion Act is hereby amended to read as follows:
"SEC. 15. That all net earnings of the corporation not surplus fund until it shall amount to one hundred per
required for its operations shall be accumulated as a reserve centum of the subscribed capital stock of such bank, and




MARCH 1, 1919.

FEDERAL RESERVE BULLETIN.

229

that thereafter ten per centum of such net earnings shall posited with the Treasurer of the United States by the
be paid into the surplus."
written or engraved signatures of the Treasurer and RegisSEC. 2. That that part of section ten of the Federal Re- ter, and by the imprint of the seal of the Treasury, and
serve Act which reads as follows: "The members of said shall also express upon their face the promise of the
board, the Secretary of the Treasury, the Assistant Secre- association receiving the same to pay on demand, attested
taries of the Treasury, and the Comptroller of the Currency by the written or engraved signatures of the president
shall be ineligible during the time they are in office and or vice president and cashier; and shall bear such devices
for two years thereafter to hold any office, position, or and such other statements and shall be in such form as
employment in any member bank," be amended to read the Secretary of the Treasury shall, by regulation, direct."
as follows:
Approved March 3, 1919.
"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,
Study of Credit Barometrics.
position, or employment in any member bank. The
appointive members of the Federal Reserve Board shall
In the following pages are given the results
be ineligible during the time they are in office and for two of a study of "credit barometrics'7 prepared
years thereafter to hold any office, position, or employ- by Mr. Alexander Wall, of the National Bank
ment in any member bank, except that this restriction
shall not apply to a member who has served the fuJl term of Commerce, Detroit, Mich., at the request
of the Board, under the general supervision of
for which he was appointed."
SEC. 3. That sec Jon eleven of the Federal Reserve Act the Division of Analysis and Research of the
as amended by the Act of September seven, nineteen Federal Reserve Board. This report was first
hundred and sixteen, be further amended by striking out prepared for the use of the Federal Reserve
the whole of subsection (m) and by substituting therefor a
Board and of the Federal Reserve Banks, but
subsection to read as follows:
"(m) Upon the affirmative vote of not less than five of the general interest in credit conditions has
its members the Federal Reserve Board shall have power led to its publication in the belief that it may
to permit Federal Reserve Banks to discount for any mem- attract comment and discussion relative to
ber bank notes, drafts, or bills of exchange bearing the the principles presented in it. The methods
signature or indorsement of any one borrower in excess of
pursued were originated by Mr. Wall and have
the amount permitted by section nine and section thirteen
been carried out by him. along his own lines,,
of this Act, but in no case to exceed twenty per centum of
the member bank's capital and surplus: Provided, however, subject only to general criticism and suggestion.
That all such notes, drafts, or bills of exchange discounted To the Federal Reserve Board, Washington, D. C:
for any member bank in excess of the amount permitted
This report on credit barometrics will consist of several
under such sections shall be secured by not less than a
main divisions, the first treating the theory involved; the
like face amount of bonds or notes of the United States
second the method of compilation in the examination
issued since April twenty-four, nineteen hundred and
just made; the third displaying the results of the examiseventeen, or certificates of indebtedness of the United
nation.
States: Provided further, That the provisions of this subTHE THEORY.
section (m) shall not be operative after December thirtyfirst, nineteen hundred and twenty."
The theories lying behind the credit barometric work
SEC. 4. That section fifty-one hundred and seventy- about to be outlined developed from a desire to establish
two, Revised Statutes of the United States, be amended some sort of indicator in credit work. Common practice
to read as follows:
has (as far as has been made public) developed only one
"SEC. 5172. That in order to furnish suitable notes for general theory, which has become accepted as more or less
circulation, the Comptroller of the Currency shall, under standard. This theory is known as '' the two-for-one rule"
the direction of the Secretary of the Treasury, cause and consists of the principle that, in order to establish a
plates and dies to be engraved in the best manner to good credit proportion, the subject statement must show
guard against counterfeiting and fraudulent alterations, at least two dollars of current assets for every dollar of
and shall have printed therefrom and numbered such current liability. The reason for this measure is basicly
quantity of circulating notes in blank or bearing engraved sound, because from a credit standpoint companies must
signatures of officers as herein provided, of the denomina- be looked at partially, at least, as a liquidating propositions of $1, $2, $5, $10, $20, $50, $100, $500, and $1,000, as tion in which there is bound to be a shrinkage of assets,
may be required to supply the associations entitled to in that some4 accounts will be slow and bad and some
receive the same. Such notes shall express upon their merchandise out of season and antequated, whereas the
face that they are secured by United States bonds de- corresponding debt is not subject to shrinkage.. These




230

FEDERAL RESERVE BULLETIN.

proportions have become accepted only by common
practice, and there is a question as to whether the two-forone or the 200 per cent ratio is right, too large, or too little.
It provides a substantial margin, and has on that account
become rather generally acknowledged as safe. The
establishment of an;/ such ratio is not a matter of theory,
but has been a matter of experimentation.
While the establishment of such a ratio can not be a
matter of pure mathematics, there is a mathematical principle which can be evoked in the experimentation so as
to arrive at a fairly definite standardization. This is the
law of averages, and it has been applied by insurance
actuaries in different kinds of insurance, so that the extent
of an individual's life, the probability of lire or accident,
etc., which are not mathematical problems, have been
reduced to an almost exact science. All of this has been
done by using the law of averages as a mathematical
principle upon which to base the experimentation. The
present study is based on the adaptation of the law of
averages in the establishing of certain measures to be
used with intelligence by bank-credit men, manufacturers, and merchants in their attempts to disclose weaknesses in the financial structure.
It can not be definitely determined what proportion of
the final decision in any credit risk rests entirely upon
an analysis of the property statement. Different bankcredit men who have been interviewed in this connection
estimate the percentage of the entire decision that rests
on the statement at between 40 and 60 per cent, leaving
in contra (10 to 40 per cent of the final decision resting
upon the so-called moral risk, the knowledge of the credit
grantor of the ability of the management to produce economically, the moral fiber of the managers, the condition
of the plant, general business conditions, localized business conditions, and other matters of this land. Even if
only 40 per cent of the decision rests upon an analysis of
the statement, it still behooves the credit man and the
financial system of the country to develop this 4.0 per cent
to a 100 per cent efficiency within itself, if possible, and
it is with this in mind primarily that the theories in this
report are advanced. However, as the study develops it
will be seen that by comparison the barometrics compiled
will do a great deal toward uncovering sectional and type
trade conditions that may be unsound or top-heavy.
The adoption of the current ratio theory is in itself purely
a qualitative proposition, in which the current assets in
bulk are measured against the current liabilities in bulk.
It is quite as important, however, that a qualitative
analysis of the current assets be made, and for that reason
other ratios have been developed in this study, which it
seems wise to explain, perhaps, in detail at this point.
It has become custom to insist that merchandise inventory, both finished product, merchandise in process, and
raw material, be entered on the property statement at cost,
unless market conditions are such that the market value of
the commodities has fallen below cost, when a reduction
in the valuation is called for. This is done to prevent the




MARCH 1,1919.

inflation of the assets by the taking of profits before they
have been actually realized, as no profit is actually sure
until the merchandise has been sold and the actual cash
or equivalent received. This is sound business sense.
When we consider, however, the next economic step in
manufacture and distribution, the book account, or the
bills receivable, we do not find that this cost proposition
exists. We do not hear it argued that the accounts and bills
receivable should be carried on the statement at cost; and
there is a large question as to whether or not such a plan
would be feasible, equitable, or even possible. We are
then confronted with the fact that, in the current assets,
we have merchandise figured at cost, and receivable at'
cost plus. It seems very evident that if at any time any
manufacturer or merchant billed out his entire inventory,
transforming it into receivables, there would be a considerable increase in the total amount of the current assets,
which would not make necessary any increase in the current debt, as has the cost of manufacture. It might be a
mere bookkeeping transaction, accomplished easily and
injecting into the current assets an amount equivalent at
the very least to the entire expected profits on the transaction.
The effect of such a transformation would unquestionably be to raise the current ratio. In an explanation
of the result of this action, I have used the following
example in a number of instances, and have used figures
which, at the start, showed a 200 per cent ratio, simply
because that has been the more generally advertised proper
current ratio. We start with the following presumption
that a merchant has 50 units of merchandise against which
he owes 25 units of debt—thus establishing the 200 per
cent ratio. We then presume that this merchandise is
turned into receivables, and that, iii so doing, the merchant adds 25 units for profit, etc., giving 75 units of assets
against 25 units of debt, producing a 300 per cent current
ratio by the mere transformation from physical merchandise into receivables. It is not a question as to whether
the receivables are more desirable than the merchandise,
as there are arguments pro and con in this connection.
It is, however, unquestionaly a fact that the transfer tends
to raise the current ratio.
Therefore it becomes interesting in the study of successive statements of any company to determine the proportions that have existed from year to year between the
receivables and the merchandise. If we find that the
percentage of the receivables to the merchandise is increasing we may be certain that $herc is a larger percentage of
| profit included in the current assets, and logically we
should expect to see an increase in the current ratio itself.
If this is not the case, it makes it possible for us to inquire
from the customer how this change or proportion has been
affected, and why the current ratio has not risen. This
is the first qualitative analysis of the current ratio, in that
it gives us some comparative idea as to the value of the
receivables at cost plus, as compared to the value of the
merchandise at cost.

MARCH 1,

1919.

FEDERAL RESERVE BULLETIN.

The liquidity of the receivables is a most important
qualitative consideration in studying the current ratio.
It is manifestly evidenced that if we were positive that
the receivables of subject A were collectible with greater
certainty, or more rapidly, than the receivables of subject B, we ought to be content to allow A to operate with
a lower current ratio because of the better quality. This
liquidity can, in a certain measure, be determined by
establishing a ratio between the net sales for the year
and the receivables. If subject A discloses a percentage
of this kind amounting to 600 per cent, we have the
indication that his receivables are being collected six
times a year, or that the average length of sale approximates 60 days. Whereas, if an analysis of the statement
of subject B discloses the fact that this ratio is only
400 per cent, we see that subject B is collecting his
receivables only four times a year, or that the average
life of the receivables is 90 days. Everything else being
equal, the receivables of subject A are more liquid, and
hence of greater value.
Very much the same reasoning may be applied as
between the sales and the merchandise, indicating the
liquidity of the merchandise.
These two tests of integral parts of the current assets
are a further analysis of the current ratio from the qualitative sense, and, if properly used, may offset a decrease
in the quantitative measure of the current ratio.
While the nonliquid or fixed assets of a company under
credit analysis are often not seriously considered as of
much value, they may be used to good effect if a proper
analysis of them is made. The net worth of a partnership or corporation is distributed over all the assets,
divided between the current and noncurrent. It is a
well-defined credit axiom that the noncurrent assets
should be provided for by the invested funds of the owners
of the business. It has been recognized in the Federal
Reserve act that paper is only rediscountable when the
proceeds from its issue have been used for commercial
purposes and not for plant development. If we were
to establish a ratio relationship between the net worth
of any credit subject, and its plant investment, we would
determine what amount over and above that required
for plant the stockholders or owners of the business had
provided. If the net worth of a company is 50 units
and the plant is 25 units, the owners of the business have
supplied all of the money necessary for the plant and 25
units additional active commercial working capital,
which may be used to purchase raw materials, pay for
the cost of manufacture, carry their customers, etc.
Therefore, whereas the noncurrent or fixed assets are not
very generally used in determining the credit risk, the
relationship between the invested funds and the noncurrent assets discloses an interesting condition of how
much the owners have put into the current part of the
business. If this ratio is studied from year to year it
makes an interesting check on net worth. A mere increase in net worth, as shown by comparative analysis is




231

interesting, of course, but the distribution of this increase
is far more interesting. If the percentage between net
worth and fixed assets is a falling one, it is pretty certainly disclosed that the subject company is expanding
its plant more rapidly than the net worth of the company in proportion. It is tying up a greater fraction of
its invested funds in nonliquid assets and its capitalization is becoming more and more fixed capital. It is an
indication of transformation of active into semimoribund
capital and is a very decided mark of a condition which
when it exists on a broad scale is conducive to tightness
of commercial credit, and this is one of the first steps
toward a condition of crisis. It is often brought about
by an optimism due to rising prices and the hope of great
profits through increased production. It is a check on
building operations that may leave the subject company
plant topheavy.
Whereas we have already considered sales in their relationship to receivables, and merchandise, in order to determine the liquidity of certain of the current assets, we
may also use them in order to determine the activity in
the invested funds by establishing a ratio between sales
and net worth. This may disclose any one of three conditions. First, the proportion between sales and net
worth may be such that it appears to be normal. Second,
this ratio may show a too rapid turnover, which may
indicate undercapitalization and a feverish condition of
the business. Third, this ratio may show a too low turnover, indicating dry rot or nonproductivity of the invested
funds,
There is also an additional study of the statement that
is of considerable value. As we have considered the net
investment in its comparison of the fixed assets and sales,
it is also well to consider it in proportion to that part of
the funds used in the production which have been supplied by outside interests. This is the commercial or
floating capital of the country, and is represented in the
individual statement by the total debt. If \ve establish,
therefore, a ratio between the total debt, as disclosed upon
the property statement, and the net worth of the company,
we disclose the proportion of the total capital used that is
being supplied by creditors and by the owners of the
business.
The seven ratios, briefly outlined, are those which the
writer has adopted under the caption of internal analysis,
in an attempt to analyze the current ratio, the capitalization plans, and the vitality of the business. Taken year
after year in comparison they bring out interesting phases
that there mere quantitative analysis or the current ratio,
in the old comparative analysis of statements would not
disclose
The internal analysis theory, while interesting and instructive, is only part of the business study which could
be made, and for the making of which this report is an
argument. There can be no question but that different
proportions should and do exist between the assets and
liabilities of different types of business. It would hardly

232

FEDERAL RESERVE BULLETIN.

be logical or fair to compare the current ratio of a hardware
concern with the current ratio of a millinery company,
although, when we admit the two for one theory this is
largely what is done, with purely inspirational mental
reservations. Type is a certain factor in credit analysis,
and the establishment of type is what should be attempted
upon a large scale. This would consist first of all in assembling the property statements of as many businesses as
possible, sorting or segregating them into types, and accumulating them into a typical type statement, made up of
the totals of the different items of all of the individual
statements. The proportions that were then found to
exist upon this type statement would be a decided advance, if used in the measurement of the individual statements, over the hard-boiled two-for-one theory. These
would vary from year to year with changing conditions
and would create a flexible barometric measure.
However, the mere segregation into types is not by any
means sufficient or scientific, as the different customs,
economic and social requirements of different parts of the
country would affect companies even in the same line of
business. It is hardly to be supposed that a dry-goods
company operating in New England would operate under
the same economic laws, or be able to maintain the same
proportions as one operating in California. Therefore it
seems advisable in the type study to separate the types
on some sectional plan, and to establish typical figures by
economic sections, so that within any one section any type
of business may be measured up against the typical ratios
for that kind of business within that section.
Before leaving this section of the argument and taking
up the method by which this was done, I can not but call
attention to the fact that the sales of a company are a most
important matter in the proper analysis of the property
statement. The scope of the present examination would
have been at least doubled, and probably trebled, if for
every statement examined the sales were forthcoming.
The number of statements upon which the figures of this
report are based is 981. In order to secure these 981 statements in which complete figures were available, it was
necessary to examine between 2,000 and 2,500 property
statements. I would urge upon the Federal Reserve
Board that, if possible, they develop a policy that rediscounting eligibility be dependent upon the supplying of
sales, and possibly operating memoranda, in addition to
the property statement. This in some lines of business
would be radical, and in some lines of business not necessary, but by and large the principle is one that should
unquestionably be put forth without fear or favor, and
insisted upon, excepting where good cause can be advanced
why the information should not be forthcoming. The
principal argument has been that customers do not wish
to disclose their sales for fear that their competitors will
gain an intimate knowledge of the business to which they
are not entitled. This seems to be a very weak-kneed
position, and I would strongly urge that the Federal Reserve Board take this particular thing under very serious
consideration.




MARCH 1,1918.

THE METHOD.

Through consultation and otherwise, on the basis of
establishing sections of the country which could be considered in analyzing on the type basis, a number of sections were laid out, which have been used in the statistical work of this report. These sections were indicated on
an accompanying skeleton map. They are, of course, subject to adjustment, and may not meet the approval of other
credit students. They, however, follow general economic
lines, and have served in this particular compilation.
The commercial paper brokers were used as the source
of information, and almost without exception they have
forwarded to the writer complete sets of the statements of
their commercial paper names, totaling something in the
neighborhood of 2,500 names. These statements were
first segregated according to sections, and the essential
items of each statement transcribed to a form for ready compilation herewith attached.
The figures on these forms were then totaled by sections,
and the following mixed type table developed, indicating
the scope of the examination. In this table, which has
been labeled No. 1, the first column represents the number of statements within the section that have been found
available for use. The second column indicates the number of the section in which the name originated, and the
following columns indicate the amounts of the various
items. In order to condense and simplify the work, three
ciphers have been omitted, and in reading the tables this
must be remembered. (See table marked "No. 1" attached hereto.)
These figures were later sorted according to types of business within sections, listed in the same manner, and the
results are indicated on the tables marked " Nos. 2 to 10."
both inclusive, attached hereto and made a part hereof.
The next process was to establish the seven ratios, which
have been discussed on a national basis, taking all of the
statements as disclosed on Chart No. 1. These figures establish the seven ratios for mixed figures in the nine different sections, and also for the total mixed figures over
the country as a whole. (Chart No. 11.)
Following this Charts Nos. 12 to 20, inclusive, were perpared, taking up several principal lines of business in
which the statements received seem to provide enough
statistics so that an analysis as between sections would be
possible.
Following this the ratio Charts Nos: 21 to 29, inclusive,
were developed, carrying out the development of the
seven-point analysis for these lines of business in the
varying sections, establishing the type sectional barometric figures. Charts Nos. 11 and 30 were also developed
to indicate mixed type ratios and total national ratios and
also the ratios for the several types of business taken as
examples.
RESULTS.

A proper understanding of the results of this analysis is,
of course, best disclosed by a careful comparison of figures,
in detail. This, perhaps, would not be within the prov-

MARCH 1,1919.

ince of this report, other than to call attention to the more
salient features, because deductions from the figures will
vary with the individual knowledge and inspiration of the
person making the analysis. It may be interesting however, to indicate, briefly, some of the more evident
thoughts that are brought to the surface.
At the beginning of this examination, mention was made
of the current ratio theory of two for one, or 200 per cent.
If we turn to Chart 11, and investigate the current ratio,
it will be found that the lowest point in the mixed types
is displayed in section 1, and registers 233.43 per cent.
The highest ratio is found in section 8 and registers 305.55
per cent, a considerable fluctuation, and the minimum
being substantially above 200 per cent. The proportion
of the ratio of receivables to merchandise varies from the
low point in section 9 of 56.11 per cent, to the high point
in section 4 of 82.43 per cent. The worth to fixed assets
ratio varies from the low point in section 3 of 165.15 per
cent to a high point in section 7 of 345.43 per cent. The
liquidity of the receivables ratio varies from a low point
of 515.08 per cent in section 5, to a high point of 890.14
per cent in section 3. The liquidity of the merchandise
varies from a low point of 360.82 per cent in section 5 to a
high point of 544.55 per cent in section 3. The activity
of the invested funds varies from a low point of 142.52 per
cent in section 8 to a high point of 297.60 per cent in section 6. The ratio of debt to net worth ranges from a low
point of 22.16 per cent in section 8 to a high point of 52.46
per cent in section 3. If we are to consider these ratios
in their relationship to types of business, we will find a,
perhaps, even more interesting variation. In this particular phase, I have eliminated from the consideration the
types of business in sections where less than five statements have been considered. The highest current ratio
found is in the hardware type in section 6, based on 13
names, and runs to 381.05 per cent. The lowest ratio in
this type is 253.97, based on 16 names in section 7. The
lowest current ratio for type by sections is 157.98 per cent,
being a somewhat peculiar ratio, in that it is one taken
between the current assets and the total liabilities, because
of the fact that in this particular section, in this particular
line of business, a large part of the debt has been funded
in several instances, but still from a liquidating standpoint
is still largely current. This ratio is found as a result of
JO packers' statements in section 3. The highest packers'
ratio is found in section 2, being made up of only one statement, which shows a current ratio of 640 per cent, and is
probably not typical. The national figures, using the
current assets and current liabilities only for packers, is
235.49 per cent, and the ratio between the current assets
and the total liabilities, thereby taking account of the
bonded or deferred debt, is 160.65 per cent. A fair credit
current ratio is probably something in the neighborhood
of 185 per cent.
An analysis of Chart No. 30, made up of the national
ratios of various types of business, discloses the fact that
106597—19
7




233

FEDERAL RESERVE BULLETIN.

type No. 7, or farm implements, registers the highest current ratio. It amounts to 355.78 per cent, based on the
composite figures of 20 statements, representing in bulk
a net worth of $61,328,000 and sales of $63,074,000.
Taken on the purely quantitative two-for-one theory,
this would seem like a very high average. When taken
however, from the qualitative angle, this extremely high
ratio does not appear so prominently supersatisfactory.
While the final mixed current ratio taken from the whole
981 statements is only 241.56 per cent, giving type 7
an apparent margin of betterment of 114.22 points, the
qualitative ratios of sales to receivables, and sales to
merchandise, do not show to as good advantage. These
by comparison are as follows:
Mixed
national
figures.

Current ratio
Sales—Receivables..
Sales—Merchandise.

"I

Type 7.

Per cent.
241.56
734.61
473.44

Per cent.
355.78
329.62
209.33

i

The greater slowness of turnover, both of receivables
and merchandise, evidences much less liquidity of receivables, and slower merchandising.
The ratio of sales to worth of 102.84 per cent, as compared
to the mixed ratio of 249.34 per cent, indicates a very much
slower than the average turnover, or a more torpid investment.
In contra to this type study it will be interesting to
analyze the typical indications of type 12, or the packer
group. Here we find a current ratio of 235.08 per cent,
some 6 points below the mixed type. When we substitute
for this the ratio" between current assets and total debt,
160.65 per cent, or an estimate true ratio of say 175-180
per cent, we find the current ratio from 60 to 70 points
below national mixed current ratio. Here again, however,
we find the qualitative ratios supporting the lower ratio in
the same manner in which they tended to level the higher
ratio. The same kind of comparative summary is interesting.
Mixed
national
figures.

Current ratio
Sal os—Receivables..
Sales—Merchandise.

Type 12.

Per cent.
241.56
734.61
473.44

Per cent.
160-170
1,027.30
829.57

The very much faster turnover of receivables and merchandise indicates clearly greater liquidity in the current
assets, and hence a greater potential liquidating strength
in the current ratio, even if quantitatively lower.
The ratio of sales to worth, 483.27 per cent, as compared
to the mixed ratio of 249.34 per cent, also indicates a much

234

FEDERAL, RESERVE BULLETIN.

more active investment. This is somewhat offset by the
fact of the higher debt ratio of 80.36 per cent, compared
to the mixed ratio of only 47.19 per cent.
This shows how the internal 7-point ratio analysis expands ordinary analysis by checking and explanatory
studies. This same comparison between the ratios of an
individual statement and the type and national mixed
figures shows weaknesses of collection methods, poor or
good merchandising, etc.
The two types used in detail were selected because they
formed radical extremes, but typical variations occur in
the other types, and within any type sectional variations
of a similar nature are so very apparent that a detailed
explanation in this report is omitted other than to call
attention to the charts on which they are indicated.
In order to eliminate unnecessary details and still to
disclose the principle, I have compiled Chart No. 30, indicating a comparison between nine types of business, using
the national ratios. These businesses are as follows:
Dry goods, wholesale
Hardware, wholesale
Grocers, wholesale
Milling
Tanners
Drugs
Farm implements, etc
Furniture
Lumber
Packers, fruits, etc
Department stores
Packers
:
Boots and shoes
Paper
Iron and steel
Oils
Hats, caps, men's clothing-, etc
Seeds, etc
Knitting mills, etc
Building materials, etc
Machinery
Household supplies




-

'

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22

MARCH 1,1910.

Foodstuffs, miscellaneous
23
Rubber goods
24
Auto accessories, etc
25
Cotton mills
26
Fuel
27
Woolen
28
Automobiles
29
Miscellaneous
30
An examination of this chart indicates that the current
ratio in the packing business is lowest of that of any of
the types. With the old-fashioned 200 per cent current
ratio theory this might lead the analyst to believe that
the packing business was weak, because of the lowness
of its current ratio, although inspirational analysis has
made indefinite allowances. If, however, we apply to
the condition the qualitative analysis, we find that the
receivables in the packing business display a very much
greater liquidity, as does also the merchandise, the sales
to receivable ratio and the sales to merchandise ratio
being very much higher than in any of the other types of
business. This substantiates the general belief that a
packing company can operate safely on a very much lower
current ratio than can the other types of business. We
also find that the activity of the investment in the packing
business is very much higher than that of other lines of
business. The ratio of worth to fixed assets indicates that
the packers rely very largely upon outside investment
for the carrying of their current assets, because it displays
a very low ratio. This is substantiated also by the ratio
of debt to net worth, and it is considerably higher than any
of the other types under discussion.
This national chart, taken as a first guide in comparison
with an individual statement, would indicate whether
or not the figures of the individual statement were approximately in line with the type of business into which they
fall. This being generally established, we may progress
to the analysis of the figures by comparing them with
the section within which the type operates and get a
further viewpoint as to the nearness of the approach
to the actual condition in the line of business.

CHART N O . 1.—Mixed national figures.
Current
Statements. Section. assets.
91
1.38
165
107
72
144
127
36
41
981

1
2
3
4
5
6
7
8
9

Current
liabilities.

Debt.

Receivables.

Merchandise.

Fixed.

Worth.

Sales.

$199,451
273,596
774.845
66,278
167,817
195,008
101,250
33,330
68,461

$85,443
116,598
328,285
25,374
61,958
82,273
40,110
10,908
26,668

$91,177
124,321
419,068
26,514
78,428
83,276
40,802
10,971
26,786

$75,184
87,423
252,052
27,224
62,364
70,094
38,902
12,416
22,026

8101,774
145,813
412,997
33,026
89,025
106,046
54,113
17.860
39,253

8110,008
155,780
483,659
21,079
85,228
96,615
21,113
27,673
28,953

S21O,651
286,737
798,773
61,119
170,007
180,478
83,295
49,491
69,421

5440,701
576,535
2,218,963
152,147
321,225
537,104
244,267
70,538
170,932

1,880,036

777,517

001,343

648,285

1,005,907

1,033,108

1,909,972

4,762,412

MARCH 1, 1019.




235

FEDERAL RESERVE BULLETIN.

CHART NO. 2.—Section No. 1.
Statements.
6
2
5
1
6
2
1
4
1
1
1
20
2
2
4
2
0

5
3
4
14

1
2
3
4
5
6
8
9
10
11
12
13
14
15
17
19
20
21
23
24
2S

91

Current

Current
liabilities.

$11,215
788
3,207
587
22,709
18,427
640
3,522
2.5*8
094
641
51,265
1,040
2,4}")
2,751
953
6,224
5,028
1,567
18,424
44, 776

S-1,040
352
1,578
150
10,847
6,749
230
1,312
941
220
430
23,669
501
836
1,371
353
2,741
1,968
305
8,123
18,115

$5,067
352
1,613
150
10,847
6,719
230
1,359
941
226
430
24,083
575
908
1,423
353
3,782
2,267
305
8.127
21,270

85,039
319
1,470
122
8,332
3,913
219
1,654
1,685
203
290
23,200
236
601
749
303
3,121
1,513
1,002
7,166
13,958

85,674
325
1,470
411
12,7G0
13,011
349
1,612
717
411
282
23,871
714
1,742
1,786
595
2,395
2,312
316
9.216
27, 715

82,037
193
451
87
1,870
35,461
398
2,220
232
559
688
13,678
2,144
2,014
722
597
6,489
5,921
635
11,128
22,484

38,191
833
2,027
524
12,554
42,532
809
4,391
1,840
812
797
41,616
2,069
3,661
2,039
1,139
8,863
8,069
1,871
21,425
44,589

829,749
1,974
10,037
7.165
io, 226
44,711
1,459
8,050
10,000
2,199
2,629
109,817
2,502
4,628
4,503
1,912
16,328
9,709
6,562
35,800
85,705

199,451

Type.

85,4:13

91,177

75,184

107,774

110,008

210,651

410,701

assets.

Debt.

Receivables.

Merchandise.

Fixed.

Worth.

Sales.

CHART NO. 3.—Section No..
Statements.
7
10
24
7
3
2
2
3
1
10
1
14
3
1
7
18
2
8
2
4
2
3
2
2
138

Type.

o
3
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
28

Current
assets.

Current
liabilities.

Debt.

Receivables.

"Merchandise.

Fixed.

Worth.

Sales.

511,690
6,428
17,858
9,051
5,755
2, 798
4,406
2,533
228
34.515
1,120
43, 765
2,606
661
27,126
45.383
i;767
6,762
1.783
6,333
4,313
9,447
26,518
740

$5,436
2,410
7,794
3,452
2,154
1,360
2,384
1,059
69
12,617
175
20.216
'759
300
13, 743
20,723
453
3,293
367
2,413
1,852
5,476
7,462
431

86,048
2,791
10,707
3, 731
2,154
1,360
2,384
1,059
69
12, 727
175
20,241
2,855
300
13, 743
20, 770
453
3,435
587
2,413
2,950
5,476
7,462
431

55,500
1,706
6,835
3,028
1,640
1,070
2,334
1,175
51
11,980
278
12,S60
880
139
7,839
14,759
308
2,075
406
2,179
1,187
3,456
5,508
230

$5,400
4,155
9,213
4,717
3,430
1,453
1,735
802
143
19,102
751
24,570
917
507
17,058
27,792
1,311
4,050
1,272
3,539
1,757
4,975
6,727
437

82,026
1,372
9,326
2,632
3,892
1,886
6,092
948
802
29,711
2,189
1,503
7,361
1,023
14,897
33,830
519
5,697
1,144
2,652
6,358
13,398
6,226
296

87,659
4,949
16,568
7,889
7,050
3,323
8,120
2,410
961
52,286
2,685
24,473
5,999
662
28,740
57,222
1,833
8,385
2,339
6,275
7,495
17,504
11,304
606

S25,266
13,760
59,128
14,474
12,234
6,618
5,944
6,300
1,038
83,707
2,652 j
53,080
7,135
1,005
100,552
78.057
1^ 897
19,604
3,422
17,599
12,062
33,264
15,787
1,950

273,590

116,598

124,321

87,423

145,813

155,780

286,737

576,535 j

236




FEDERAL RESERVE BULLETIN.

MARCH I,1919.

CHART N O . 4.—Section No. S.
Statements.
12
14
29
1
8
3
5
10
6
1
2
10
9
4
7
4
4
4
3
8
A

2
6
1
1
2
5

Type.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
16
17
18
19
20
21
22
23
24
25
27
28
29

Current
assets.

Current
liabilities.
$5,093
2,253
10,038
76
5,561
939
2,983
2,269
4,432
606
653
169,890
2,025
682
5,290
2,679
3,153
949
765
4,731
4,211
3,116
71,858
3,924
1,092
1,555
17,462

774,845

165

812,680
8,898
24,420
820
17,443
1,906
7,806
6,585
12,309
1,045
1,143
397,286
6,258
1,900
11,510
5,578
5,060
2,848
3,330
12,963
9,458
5,676
155,008
9,796
1,869
2,730
48,511

Debt.

328,285

$5,125
2,603
10,095
76
6,989

Receivables.

Merchandise.

Fixed.

4,483
.2,458
4,607
606
1,050
251,470
2,137
682
5,846
2,679
5,837
949
2,003
5,111
4,273
3,116
71,901
3,924
1,092
1,555
17,462

84,831
3,318
7,423
43
4,517
806
1,141
2,088
3.199
'564
280
146,215
2,742
656
3,138
2,266
806
704
1,116
3,957
1,586
2,539
41,308
2,318
1,621
779
12,691

87,209
5,234
15,601
97
11,894
970
5,093
4,364
7,656
373
820
176,792
3,243
M34
7,254
2,714
3,888
1,919
2,041
7,688
7,250
1,483
100,052
6,300
1
1,216
30,711

$2,623
3,446
6,477
454
7,195
554
9,758
5,793
14,970
278
1,200
157,932
861
2,688

419,068

252,652

412,997

Worth.

i
Sales.

1,272
9,877
6,781
16,896
8,882
142,477
16,354
601
731
50,950

810,184
9,578
20,642
1,049
16,857
1,078
12,818
9,838
20,690
717
1,286
297,443
4,922
3,788
13,225
3,024
4,957
3,058
10,727
13,940
21,698
11,313
211,522
22,048
1,294
1,432
68,885

$23,783
18,192
80,095
5,869
33,697
4,211
11,475
12,935
23,148
1,775
2,767
1,490,928
13,438
5,514
32,009
8,759
6,069
3,779
4,996
16,347
18,450
42,966
274,343
24,103
9,262
5,456
72,577

483,659

798,773

2,248,963

*S§
5,294

CHART NO. 5.—Section No. 4.
Statements.
6
25
47
4
1
4
1
2
2
6
1
5
1
2

Type.

Current
assets.

Current
liabilities.

Debt.

Receivables.

Merchandise.

107

$4,287
19,791
20,139
1,890
203
2,405
764
1,715
1,437
6,205
815
5,263
846
518

81,497
7,281
7,574
166
99
794
280
564
664
3,074
216
2,352
530
283

SI,497
7,327
7,646
166
99
996
280
564
664
3,644
216
2,602
530
283

SI,920
8,077
9,242
629
61
944
361
983
675
1,709
470
1,665
314
174

$2,340
10,655
9,526
322
128
1,368
390
669

66,278

1
2
3
4
5
6
7
8
9
11
13
19
20
22

25,374

26,514

27,224

Fixed.

Worth.

Sales.

3,255
324
2,648
470
334

S472
2,693
3,623
895
15
556
152
324
562
5,935
71
4,082
1,068
621

$3,494
15,530
16,387
2,515
119
1,962
636
1,501
1,339
8,483
669
6,170
1,362
952

87,817
36,303
64,049
8,264
479
4,743
941
2,652
2,566
10,712
914
10,626
1,005
1,086

33,026

21,079

61,119

152,147

597

CHART NO. 6.—Section No. 5.
Statements.
4
8
15
2
3
3
11
3
7
2
3
3
1
2
1
2
1
1
72

Type.
1
2
3
5
7
8
9
12
13
14
16
17
18
19
20
21
22
24

Current
assets.

Current
liabilities.

$9,203
21,262
20,638
20,241
31,971
1,236
13,273
6,087
9,082
4,902
3,360
7,712
349
4,109
269
5,510
8,252
361

84,216
8,074
8,683
8,635
5,858
448
5,516
2,950
3,930
2,347
1,450
3,562
148
2,204
63
2,163
1,445
266

167,817

61,958

Receivables.

Merchandise.

S4,446
8,108
10,319
8,635
11,871
448
6,220
2,950
3,930
9,273
1,526
4,357
148
2,204
63
2,163
1,445
302

S4,104
8,487
8,812
4,978
12,376
376
6,595
1,754
3,847
1,346
922
2,986
97
1,250
75
1,980
2,349
30

$4,055
11,805
10,455
14,255
15,776
818
5,953
3,505
4,417
1,158
2,166
4,419
237
2,537
186
3,116
3,846
321

$1,551
5,810
4,067
9,302
14,910
555
4,154
4,059
1,695
16,079
2,590
3,449
140
2,486
783
4,296
8,798
504

$6,290
18,765
13,957
20,880
31,413
1,325
11,163
7,155
6,722
11,707
4,425
6,679
338
4,390
987
7,643
15,605
563

$13,598
41,161
60,143
31,983
22,176
1,773
22,210
33,864
16,126
9,651
24,035
12,173
634
6,459
404
8,356
15,000
1,479

78,428

62,284

89,025

85,228

170,007

321,225

Debt.

Fixed.

Worth.

Sales.




237

FEDERAL RESERVE BULLETIN.

MARCH 1,1919.

CHART N O . 7.—Section No. 6.
Statements.
12
13
27
25
1
4
6
1
15
4
1
10
2
2
4
2
1
4
5
3
2

Current
assets.

Current
liabilities.

1
2
3
4
5
6
7
S
9
11
12
13
14
16
17
18
19
20
21
22
23

542,364
8,989
24,384
17,093

§21,648
2,359
10,228
6,853

2,401
4,491

144

Receivables.

Merchandise.

§21,648
2,434
10,348
6,853

$19,137
2,309
8,499
3,786

$20,442
5,944
14,443
7,615

$9,654
1,182
5,079
15,674

$26,546
7,536
18,968
25,105

$82,025
18,290
75,238
134,939

1,597

1,669

1,876

1,471
2,334

2,103

2,503
4,693

8,984
15,571

3,551
5,568

3,552
5,718

3,556
4,256

4,555
8,654

3,702
22,311

9,315
32,177

5,265
6.239
'454
13,495
42,201

52,600

22,904

23,084

19,374

29,979

26,212

33,322

576
663

129
280

129
280

170
286

394
341

697
648

4,920

2,632

2,632

1,817

2,806

1,056
3,422
3,998

538
515

310
256
540
358
182

1,400
1,394

1,685
1,514

1,108
1,274

2,185
2,432

4,116
2,168
654
879

5,320
4,528
1,184
1,710

121,073
2,226
1,645
7,402
3,055
1,413
8,048
8,688
1,526
2,095

195,008

Type.

82,275

83,276

70,094

106,046

96,615

180,478

537,104

435

262
220

915

791
873

167
412

Debt.

167
412

133

133

118

118

259
355

259
355

245
41

245
41

147
844

99
20

274
530

310
422

273

158

195

424
348

Fixed.

73
535
72

155

Worth.

341

201
257

3,230
1,014
683

Sales.

371

916

CHART NO. 8.—Section No. 7.
Statements.
27
16
46
9
1
1
1
4
6
2
1
2
2
1
2
2

Debt.

Receivables.

Merchandise.

I

$13,118
4,278
15,383
918
226
213
53
998
412
1,381
673
128
919
279
47
273
811

$13,128
4,359
15,658
918
226
238
53
998
412
1,396
673
128
1,080
279
47
273
936

$12,106
3,734
14,013
777
883
291
75
946
938
1,286
798
238
1,433
323
136
153
772

$16,392
6,306
18,134
1,616
454
482
103
1,261
968
2,594
1,237
151
2,092
214
160
830
1,119

$7,020
1,466
4,373
1,965
339
168
86
662
2,612
2,385
222
100
1,120
537
13
507
538

§25,752
7,642
22,898
3,901
1,645
739
242
1,917
4,232
5,091
1,729
367
3,720
841
303
1,308
908

$61,409
19,856
96,495
25,241
5,632
2,156
502
3,112
2,188
7,923
3,290
666
7,949
2,799
608
1,610
2,831

3
4
5
6
7
8
9
11
13
14
15
16
17
20
21

127

40,110

40,802

38,902

54,113

24,113

83,295

244,267

Current
assets.

Current
liabilities.

$31,834
10,865
34,425
2,906
1,526
806
208
2,248
2,030
4,102
2,179
395
3,741
622
337
1,074
1,937
101,250

Type.

Fixed.

Worth.

Sales.

CHART NO. 9.—Section No. 8.
Merchandise.

427
1,046
118
152
1,031
415
2,096
212

$743
1,732
761
276
149
2,550
122
324
591
98
165
570
391
3,759
182

$1,058
2,977
977
305
347
2,467
268
878
1,108
80
367
1,165
464
5,175
224

10,971

12,416

17,860

Type.

Current
assets.

4
4
5
1
1
7
1
3
1
1
1
1
1
4
i

1
2
3
4
6
9
10
11
12
13
17
21
22
23
25

$1,849
4,851
1,811
796
512
5.315
422
1,353
1.776
'211
533
1,790
905
10,780
426

$698
1,899
562
126
73
2,116

S698
1,899
562
126
73
2,116

427
1,046
118
152
968
415
2,096
212

33,330

10,908

36

Current
liabilities.

Receivables.

Statements.

Debt.

Fixed.

Worth.

Sales.

1,024
83
17,579
217

$1,987
4,651
1,429
1,008
467
5,416
1,043
1 926
2,003
249
381
1,801
554
26,148
431

$4,027
9,949
4,790
6,751
„ 1,122
* 11,430
1,231
3,158
4,987
401
716
1,486
2,043
17,301
1,168

27,673

49,494

70,538

$837
1,741
195
538
33
2,295
672
1,031
1,272
156

238




MARCH 1,1919.

FEDERAL RESERVE BULLETIN.

CHART NO. 10.—Section No. 9.
Statements.
5
7
7
4
2
3
2
3
2
2
2
2

Type.

Current
assets.

Current
liabilities.

Receivables.

Merchandise.

S2,956
3,006
2,292
2,626
1.368
2,236
2,317

Debt.

84,006
6,808
3,067
2,935
2,521
1,823
5,681
2.421

0

6
7
8
9
11
12
13

41

$7,854
10,417
5,591
8,533
4,263
2,812
8,888
4,846
1,789
3,700
10,330
1,638

$3,178
3,595
2,229
2,414
1,761
1,006
3,869
2,028

$3,178
3,655
2,262
2,414
1,787
1,006
3,869
2,023

922

3,185
1,285
3,550

1,530
3,663

1,530
3,663

2,584

2,814
5,368

9,114

698

698

519

987

68,461

1
2
3
4

Worth.

Fixed.

26,668

26,786

22,026

39,253

697

852

696
574

697

8546
1,887

Sales.

146

$5,525
8,512
4,200
12,233
3,576
2,106
8,203
4,103
4,675
2,990
12,212
1,086

$12,659
18,175
17,727
50,560
5,848
5,597 !
13,123
6,911
4,264
9,866
22,805
3,397

28,953

69,421

170,932

872

6,112
1,099
336

821

CHART NO. 11.—National mixed type ratios.
1

Sections
Number of statements

Onrrent ratio
Receivable merchandise
Worth—fixed assets
Sales—receivable
Sales—merchandise
Sales—worth
Debt worth

2

3

4

5

6

7

8

9

Nat.

91

138

165

107

72

144

127

36

41

981

Per ct.
233.43
69.76
191.48
586.16
408.91
209.21
43.28

Per ct.
234.65
59.95
184.06
659.48
395.39
200.71
43.35

Per ct.
236.02
61.17
165.15
890.14
544.55
281.55
52.46

Per ct.
261.20
82.43
289.95
558.87
460.68
248.97
43.38

Per ct.
270.85
70.05
199.47
515.08
360.82
188.94
46.13

Per ct.
237.02
66.09
186.80
766.26
506.48
297.60
46.14

Per ct.
252.40
71.89
345.43
627.90
451.58
293.25
48.98

Per ct.
305.55
69.51
178.84
568.12
394.94
142.52
22.16

Per ct.
256.81
56.11
239.77
776.04
435.46
246.22
38.58

Per ct.
241.24
64.64
184.47
734.61
473.44
249.34
47.19

CHART NO. 12.—Wholesale dry goods—Type 1.
Current
Statements. Section. assets.
6
7
12
6
4
12
27
4
5

Current
liabilities.

Debt.

Merchandise.

82,037
2,026
2,623
472
1,551
9,654
7,020

9

83

26,766 :

311,215
11,690
12,680
4,287
9,203
42,364
31,834
1,849
7,854

$4,646
5,436
5,093
1,497
4,216
21,648
13,118

So,067
6,048
5,125
1,497
4,466
21,648
13,128

85,039
5,500
4,831
1,920
4,104
19,137
12,106

3,178

3,178

2,956

$5,674
5,400
7,209
2,340
4,055
20,442
16,392
1,058
4,006

132,976

1
2
3
4
5
6
7

59,530

60,855

56,236

66,576

698

698

I

Receivables.

743

Fixed.

;

Worth. !
|

:

88,191
7j659
10,184
3,494
6,290
26,546
25,752
1,987
5,525

:
.
;
!
:

837

546 ,

Sales.

I
I
1
',
j
i
!
!
|

$29,749
25,266
23,783
7,817
13,598
82,025
61,409
4,027
12,659

95.628 !

260,333

CHART NO. 13.—Wholesale hardware—Type 2.
StateCurrent
ments. Section. assets.
2»
10
14
25
8
13
16
4
7
S3

1
2
3
4
5
6
7
8
9

Current
liabilities.

Debt.

Receivables.

Merchandise.

Fixed.

Worth.

Sales.

S788
6,428
8,898
19,791
21,262
8,989
10,865
4.851
10,417

$352
2,410
2,253
7,281
8,074
2,359
4,278
1,899
3,595

$352
2,791
2,603
7,327
8,108
2,434
4.359
1,899
3,655

S319
1,706
3,318
8,077
8,487
2,309
3,734
1.732
3 ; 006

§325
4,155
5,234
10,655
11,805
5,904
6,306
2.977
6,808

$193
1,372
3,446
2,693
5,810
1,182
1,466
1,741
1,887

$833
4,949
9,578
15,530
18,765
7,536
7,612
4,651
8,512

81,974
13,760
18,192
36,303
41,161
18,290
19,856
9,949
18,175

92,289

32,501

33., 528

32,688

54,209

19,790

77.996

177,660




239

FEDERAL RESERVE BULLETIN.

MARCH 1, 1919.

CHART NO. 14.—Wholesale grocer—Type 3.
Statements. Section.
5
24
29
47
15
27
46
5
7

Current
assets.
$3,207
17,858
24,420
20,139
20,638
24,384
34,425
1,811
5,591

205

$1,578
7,794
10,038
7,574
8,683
10,228
15,383

152,473

1
2
3
4
5
6
7
8
9

Current
liabilities.

Debt.

Receivables.

Merchandise.

3,067

195
872

$10,037
59,128
80,095
64,039
60,143
75,238
96,495
4,790
17,727

82,886

34,463

117,076

467,692

$1,470
9,213
15,601
9,526
10,455
14,443
18,134

2,229

2,262

2,292

64,069

69,240

59,247

562

761

Sales.

$2,027
16,568
20,642
16,387
13,957
18,968
22,898
1,429
4,200

$1,470
6,835
7,423
9,242
8,812
8,499
14,013

•

Worth.

$451
9,326
6,477
3,623
4,067
5,079
4,373

51,643
10,707
10,095
7,646
10,319
10,348
15,658

562

Fixed.

977

CHART NO. 15.—Tanners—Type 5.
Statements. Section.
6
7
8
1
2
1
1
2

Current
assets.

!
i

28

Debt.

§22,709
9,051
17,443
203
20,241
435
1,536
4,263

1
2
3
4
5
6
7
9

Current
liabilities.
810,847
3,452
5,561
99
8,035
167
226
1,761

•110,847
3,721
6,989
99
8,035
167
226
1,787

75.881

30,738

32,481

Receiv- j Merchanables. 1 dise.
$8,332
3j 028
4,517
61
4,978
147
883
1,368
23,314 |

Fixed.

Worth.

Sales.

S12,790
4.717
li;894
128
14,255
273
454
2,521

$1,870
2,632
7,195
15
9,302
73
339
1,099

312,554
7,889
16,857
119
20,880
341
1.64,5
3,576

$45,226
14,4.74
33,697
479
31,983
871
5,632
5,848

47,032

22,525

63,861

138,210

CHART NO. 16.—Drugs—Type 6.
Statements. Section.
2
3
3
4
4
1
1
3

1
2
3
4
6
7
8
9

21

Current
assets.

Current
liabilities.

$18,427
5,755
1,906
2,405
2,401
806
512
2,812

$6,749
2,154
939
794
412
213
73
1,006

86,749
2,154
939
996
412
238
73
1,006

$3,913
1,640
806
944
844
291
149
852

$13,011
3,430
970
1,368
1,471
482
347
1,823

$35,461
3,892
554
558
535
168
33
336

$42,532
7,050
1,478
1,962
2,503
739
467
2,106

$44,711
12,234
4,211
4, 743
5,265
2,156
1,122
5,597

35,024

12,340

12,567

9,439

22,902

41,535

58,837

80,039

Debt.

Receivables.

Merchandise.

Fixed.

Worth.

Sales.

CHART NO. 17.—Farm implements—Type 7.
Statements. Section,

1
3
6
1
2
20

Current
assets.

Current
liabilities.

Debt.

Receivables.

Merchandise.

Fixed.

Worth.

$2,798
7,806
764
31,971
4,491
208

SI,360
2,983
280
5,858
1,597
53
3,869

SI, 360
4,483
280
11,871
1,669
53
3,869

SI, 070
1,141
361
12,376
],876
75
2,236

SI,453
5,093
390
15,776
2,334
103
5,681

SI.886
9; 758
152
14,910
2,103
86
3,185

' (536
31,418

56,926

16,000

23,585

19,135

30,830

32,080

61,328

S3,323
.12,818

4,cm
242
8,203
63,074

240




FEDERAL RESERVE BULLETIN.

CHART N O . 18.—Lumber—Type
State- ^ptinn 1 Current
ments. section., a s s e t S f
4
3
6
2
11
15
4
7
2

1
2
3
4
5
6
7
8
9

!
1

:

!
1

;

i
i
|
j
i

54

Current
liabilities.

n e b,
D o > tt

'

i Raceiv| ables.

9.

Merchandise.

S3,522
2,533
12,309
1 437
13,273
8,984
2,030
5,315
1,789

SI, 312
1,059
4,432
664
5,516
3,551
412
2,116
697

§1,359
1,059
4,607 :
684
6,220
3,552
412
2,116 i
697

19,759

20,686

21,038

Fixed.

Sales.

Worth.

SI, 612
802
7,656
597
5,953
4 551
968
2,467
922

52,220
948
14,970
562
4,154
3,702
2,612
2,295
3,550

84,391
2,410
20,690
1,339
11,163
9,315
4,232
5,416
4,675

$8,056
6,300
23,148
2,566
22,210
13,495
2,188
11,430
4,264

25,528 j

35,013

63,631

93,657

51,654
1,175
3,199
675
6,595
3,556
938
2,550
696

51,192

MARCH 1,1919.

;

CHART N O . 19.—Packers—Type .

1
1
10
3
1
1
2

1
2
3
5
6
8
9

19

Current
assots.

Current
liabilities.

$641
1,120
397,286
6.087
220
1,776
10,330

$430
175
169,890
2,950
118
1,046
3,663

§430
175
251,470
2,950
118
1,046
3,663

3290
278
146,215
1 754
20
591
2,584

S282
751
176,792
3,505
195
1,108
5,268

$688
2,189
157,932
4,059
155
1,272
9,114

$797
2,685
297,443
7,155
257
2,003
12,212

$2,629 !
2,652 i
1,490,928 !
33,864
916
4,987
22,805

417,460

Statements. Section.

177,272

259,851

151,732

187,901

175,409 j

322,552

1,558,781

Debt.

Receivables.

Merchandise.

Worth.

Fixed.

Sales.

CHART N O . 20.—Boots and shoes—Type 13.
Statements. Section.
20
14
9
1
7
10
2
1
2
66

Current
liabilities.

Current
assets.

Debt.

Receivables.

Merchandise.

Fixed.

Worth.

Sales.

1
2
3
4

851,265
43,765
6,258

$23,669
20,216
2,025

$24,083
20,241
2,137

$23,200
12,860
2,742

$23,871
24,570
3,243

$13,678
1,503

$41,616
24,473
4,922

$109,817
53,080
13,438

5

9,082
52,600
2,179

3,930
22,904
673

3,930
23,084

3,847
19,374

4,417
29,979
1,237

1,695
26,212

6,722
33,822
1,729

16,126
121,073
3,290

1,086

3,397

115,288

321,536

6
7
8
9

815

216

216

1,638

118
698

673
118
698

167,813

74,449

75,180

211

470

798
98
519

63,908

816
71

324

80
987

222
156
146

88,707

44,499

669

249

914

401

CHART N O . 21.—Dry goods—Type ./.
Sections -

Nat.

Number of statements..

6
I Per

12

12

27

cent. Per cent. \Per cent. Per ct. \Per cent. Per cent. Per cent. Per cent. Per cent. Per cent.

Currentratio
j 241.39
Receivable merchan90.41
dise.402.11
Worth—fixed
Sales—receivable
524.30
Sales—merchandise
Sales—worth
.._._ . . . . .
363.19
Debt—worth
= 61.86

215.04
101.85
378.03
459.38
467.88
329.88
78.96

| 248.96
67.01
! 388.29
| 492.29
! 329.90
! 233.53
| 50.32

288.37 j 218.28

195.69

242.67

264.89

247.13

223.38

101.21
405.54
331.33
335.33
216.18
71.00

93.61
274.97
428.16
401.25
308.99
36.36

73.85
366.83
507.26
374.62
238.46
50.97

70.22
73.48
237.39 1,011.90
541.49 428.24
380.62 316.00
202.66 229.12
57.52
35.12

84.61
357.27
482.10
391.03
272.23
63.66

82.05 i
740.25 i
407.13 I
334.05
223.72 !
42.84 I




241

FEDERAL BESEBYE BULLETIN.

MARCH 1,1919.

CHART NO. 22.—Hardware—Type i
Sections.

Nat,
10

Number of statements.. j

Per cent. •Per cent.
223.22 266.72
Current ratio
Receivable m e r c h a n - I
41.06
dise
..I 98.15
Worth—fixed.....
I 431.60 \ 260.70
Sales—recei vable
! 618.80 806.58
Sales—merchandise..... | 607.88 331.16
Sales—worth..
236,97 278.03
'Debt - w o r t h . . . . . . . . . . .
42.25
56.89

J.3

14

|

16

Per cent. Per ct. \Per cent Per cent. Per cent. Per cent. Per cant. Per cent. j
394.94 271.32 ! 263.83 SSI.05 I 253.97 255.45 | 289.76 283.95 j
88.84
58.17 [ 44.15
59.21
75.80
71.89
60.29 i
277.94 576.68 322.97 637.55 521.28 267.14 ! 457.00 394.11 !
548.28 449.46 484.98 792.11 531.76 574.42 | 604.62 543,50 !
347.57 340.71 348.67 207.70 314.87 334.19 ^ 266.96 327.73 !
189.93 23S.76 219.34 242.70 259.83 213.91 213.52 227.78 !
43.20
40=82 ! 4.2.93
48.86
42.98 .
27.17 47.15
82.29
i

CHART N O . 23.-— Grocers- Type $.
Sections..

1

2

3

4

6

47

g

7

9

46

25

S
5

7

Nat,

,.— .,
Number of statements. -

5

*

29

205 ;

'
Per cent, Per cent. Per cent. Per ci. Per eevd. Per cent. Per cent. Per ceiu. Per cent. Per cent. •
203.26 229.12 243.27 265.89 237.68 288.42 223.78 322.22 250.82 237.98 !
58.84
84.26
71.60 .
74.18
47.58 97.56
74.73
100.00
77.27
77.89
Worth—fixed
, . . 499.41 177.66 318.69 452.58 313.17 373.45 523.62 782.82 481.65 839.71 ,
S&'os—r'scei vable
682.78 865.07 1,079.03 092.91 682.51 885.25 688.61 629.43 773.42 788.06
Sales—merchandise..... 882.78 641.77 413-39 672.25 575.25 520.93 532.12 490.29 577.89 564.25
495.16 856.87 388.01 390.79 430.91 396.65 421.41 335.19 422.07 399.47
Sales—worth
48.90 46.65
68.38
39.32
59.14
53.85
64. 61
73.93
81.05
Current ratio
*
Receivable merchan-

CHART NO. 2i.—Tan'aers—Type 5.
!

6
1

Current r a t i o . . . ,
j
Receivable merchandise
Worth—fixed.....
Sales—receivable
|
Sales—merchandise.... J
Sales—worth
Debt—worth

Per cent. Per cent.
260.47 379.64

209.
65.14
671.33
542.79
353.80
360.25
86.40

i

64.19
299.73
359.33
306.84
183,47
47.29

37.97 47.65 I 34.92
224.46
234.28
746.00 785.24 i 642.98
374.21 ! 224.36
283.31
199.89 402.53 ! 153.17
41.46 43.35 ! 41.35

25.59
467.12 487.90
592.51 637.82
319.04 1,240.52
255,42 342.37
48.07
13.37

NO. 25, -DrugH—Type 6,
• Sections.
• ' \Number of statements...
iPer cent. Per cent. Per cent.
Current ratio
I 273.03 267.17 202.98
Receivable merchan47.81
S3.09
dise
30.07
Worth—5 xed
111.94 1S1.14 266.78
Sales—recei vable
:1,142.62 745 97 522.45
Sales—merchandise
343.64 356 66 434.12
3a !PS—worth
105-12
173 53 284.91
Debt—worth
| 15.86
63.53
30.55

100597—19— -8

Per ct. \Per cent Per cent. Per cent. Per cent.
302.89
582.75 378.40 701.36
69.00
352.87
502.43
346.71
241.74
50.76

57
467
623
357
210
16

37
85
81
91
34
48

60.37
42.94
439.88 1,415.15
740.89 75302
347.30 323 33
291.74 240.25
32.20
15.63

242




FEDERAL BESERTE BULLETIN.

MABCH 1,

CHART NO, 26.—Farm implements—Type 7.
5

; Sections.

I

1

6

! Number of statements.

Nat.
20

i

Current radio.
Receivable merchandise
Worth—fixed...........
Sales—receivable
Sales—merchandise.
Sales—worth
Debt—worth....

Per cent. Per cent. Per cent-. \ Per ct. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent!
205.73 261.68 272.85 545.78 281.21 483.61
329.72 355.78
73.64
22.40
92.56
176.19
131-35 I 418.42
618.50 1,180.98 | 260.66
455.47 264.57 241.28
199.15 105.12 147.95
40.92
44.02
84.97

78.45
210.88
179.18
140.56
70.59
37,79

80.87
223.15
232.56
267.30
182.94
85.56

72.81
281.89
569-32
487.37
207.48
21.90

39.35
257.56
586.86
230.99
150.97
47.16

63.50
191.17
329.62
209.33
102.84

i

as. 45

CHART N O . 27.—-Lumber— Type 9.

Nat.

2

• Sections.

._

3

j Number of statements..

11

15

j _
2

!

Per cent. Per cent. Per cent.Percent Per cent Per cent. Per cent. Per cent. Per cent.
239.18 277.72 216.41 240.62 252.99 492.71 251.18 256.67
Current ratio
288,44
Receivable merchan146.50
78.13
98. SO 103.36
41.78 113.06 110.78
75.58
dise
! 102.60
162.02
186.43 131.68
33R.20 238.25 268.92 251.62
Worth-Fixed...
! 97.79 254.21
723.60 380.14 336.77 379.49 233.26 448.23 612.64 ,
Saics—Receivable
487.08 536.17
Sales—Merchandise..... 499.75 785.53 302.35 429.81 373.08 296.52 226.03 463.31 462.47
51.70 211.04
91.20
Sales—Worth,....
184.46 201.41 111.87 191.63 198.96 144.87
43.94
55.71
39.06
22.25 49.58
43.92
17.90
Debt—Worth
i 30,, 94
38.13

CHART N O . 28.—Packer*—Type

82.37
181.73
445.18
366.87
147.18
32.50

Nat.
10

Number of statements.

Per cent. Per cent. Per cent. Percent. Per cent Per can. Per cent Per cent. Per cent Per cent.
157.98
1(50.65
206.33
* 169.° 79" 282.00
186.44
149.06 640.00 233.84
235.49
102.83
110.02
906.55
932.36
329.86
53.95

82.70
37.02
122.65 188.33
953.95 1,019.68
353.12 843.32
98.77
501.24
6.50
84.54

50.04
10.25
176.27 165.80
1,093.67 4,580.00
766.16 469.74
473.06 356.42
45.91
41.22

CHART NO., 29.—Boots and shoes—Type IS*
Sections.,
Number of statements..

20
!

Current ratio
•
Receivable
merchandise
Worth—Fixed
Sales—Receivable
Sales—Merchandise
Sales—Worth.
Dobt—Worth

Per cent.
259.08

IS.

Sections.

Special current ratio
Current ratio
Receivable merchandise
Worth—Fixed..
Sales—Receivable
Sales—Merchandise..
Sales—Worth
-.,...
Debt—Worth...,

54

Per cent.
216.59
97.18
52.34
204.25 1,628.27
473.34 j '412.75
460.04
263.88 i
57.!

53.33
157.46
843.82
450.00
248.97
58.22

49.05
80.75
133.99
183.88
882.54 1,027.30
432.89 829.57
186.74 483.27
29.98
80.55

I

MARCH

1,3L019.

CJHARl
Types

....

Receivable
merchandise
Worth—Fixed . . .
Sales™ Receivable
Sales—Merchandise.
Sales—Worth
Debt. -Worth

No. 30 .—National type ratios.

I

,

Number of statements..

Current ratio

243

.FEDERAL EESEBVE BULLETIN

.

2

3

5

6

7

S3

99

205

28

21

20

9

54

12

13

19

66

Per cent. Per cent. Per cent. Percent. Per cent. Per cent. Per cent. Per cent. Per cent
237.98 246.80
269.35
223.38
283.95
235.49
259.08
355.78
225.40
"•60 65
84.61
357 27
•162.10
391.03
272.23
63.66

00.29
394.11
543.50
327.73
227.78
42.98

71.60
339.71
788.00
564.25
899.47
59.14

49.57
283.51
592.81
293.86
216.42
50.86

41.21
141.65
847.96
349.48
13ft.05
21.35

83. SO
)91 17
329.02
209.33
102.84
88.45

SO 75
82 37
183 88
381 73
445.18 1.027.30
828.57
386.87
147 18 483 27
32.50
SO. 58

72 04
259 07
503.12
362.46
278 s?9
65.21

?
•

NOTE.—These tables are of eou?3e not complete, but are indicative of what m a y b e accomplished by coordinated
barometric research.

DEVELOPMENT OF THE COLLECTION SYSTEM.
The New York Clearing House Association
has adopted a new set of rules and regulations
relating to the method of making collections for
members of the association or for others clearing through such members, as well as the rate
to be charged for the collections in question.
Simultaneous with the transmission of these
regulations, effective March 1, the Federal
'Reserve Bank of 'New York has sent out under
date of February 26 a schedule showing when
the proceeds of acceptances will be available if
collected through the Federal Reserve Bank of
New York. There is herewith reprinted the circular sent out by the clearing house, as follows:

State of New York, or the City of New York, from whatever source received (but not checks, warrants, etc., issued
by said Governments and deposited by or collected for the
account of the bank's other customers), the charge shall be
discretionary with the collecting banks.
SEC. 3, For checks or drafts drawn on banks, bankers,
and trust companies, and for all other items, the charges
shall be not less than those prescribed for the respective
points in the following schedule, subject to the provisions
of sections 4, ft and 6:
States.

Checks or drafts drawn
on banks, bankers, All other Items.
and trust companies!

. . . . . . . . . . . . . . . | One-tenth of 1 per cent.. One-tenth of I
per cent;..
,.do.
Do.
..do.
Do.
..do.
Do.
NEW YORK CLEARING HOUSE-—RULES AND REGULATIONS
One-twentieth of 1 per
D
per cent.
REGARDING COLLECTIONS OUTSTDE OF THE CITY OF NEW Colorado....
One-tenth of 1 per ccnt..j
.Do.
One-twentieth ~of 1 per
Denver.
Do.
YORK.
cent.
CEflr'ecfcive Aug. 12,1918: amended Sept 3,1918; Feb. 10.1919, eflcctiv© Connect lent
Discretionary...........
Do.
Do.
.....do
Delaware
Mar, 1,1919.)
.....do
Do.
District of Columbia.
Pursuant to authority conferred upon it by the consti- Florida-,.,
One-eighth oi" I per cent. One-eighth of 1
per cent,
tution of the New York Clearing House Association, the Georgia.....
One-tenth of 1 per cent.. One-tenth of I
per cent.
clearing house committee oi said association establishes
One-fortieth of l per
Atlanta,
* Do.
cent.
the following rules and regulations regarding collections
One-tenth of 1 per cent..
Do.
outside of the City of New York (except as to items on Idaho...
One-twentieth of 1 per
Do.
Illinois.,
cent.
clearing nonmembers), by members of the association, or
Chicago.
One-fortiel h of 1 per cent
Do.
One-twentieth of 1 per
banks, trust companies, or others clearing through such Indiana. . . p .
.Do.
cent.
members, and the rates to be charged for such collections, I o w a . . . . . .
One-tenth of I per cent..
,do
Do,
Kansas
and also regarding enforcement of the provisions hereof:
One-fortieth of 1 percent
Kansas City..
DOr
One-tenth of 1 per cent..
SECTION 1. These rules and regulations shall apply to Kentucky
Do.
One-fortieth of 1 per cent
Louisville....
Do.
all members of the association, and to all banks, trust com- Louisiana,
One-eighth of 1 per cent. One-eighth of I
per cento
panies, or others clearing through such members, but not j
One-twentieth of 1 per One-tenth of I
New Orleans?
cent.
to branches in foreign countries of member banks. The
per cent,
Discretionary...........
* Do.
"
Maine.....
parties to which the same BO apply are hereinafter described Maryland
do..
Do.
do.
Do.
Baltimore..
as collecting banks,
Do,
do............
Massachusetts..
I Discretionary*1
Sec. 2. For all items deposited by or collected for the
Boston.

account, of the Governments of the United States, the




Alabama

Arizona............
Arkansas
.......
California
San Francisco..

* See section. 6,

244

FEDERAL RESERVE BULLETIN.

States.

Michigan..
Detroit.......
Minnesota
,
Minneapolis,,
St. Paul......
Mississippi..
Missouri

..-.,.

Kansas City..
St. Louis
Montana
Nebraska
Omaha.
Nevada
New Hampshire.
New Jersey
Hoboken
Jersey City....
New Mexico
Now York
New York City.
North Carolina
North Dakota..
Ohio
Cincinnati.
Cleveland..
Oklahoma.
Oregon....
Portland.,.
Pennsylvania
Philadelphia...
Pittsburgh
Rhode Island...
South Carolina..
South Dakota...
Tennessee..,
Texas.......
Dallas...
Utah
Salt LakeCitv.
Vermont.......
Virginia
Richmond.
Washington
.Seattle
Spokane...
West Virginia..
Wisconsin
Wyoming.

! Checks or drafts drawn
j on banks, bankers, All other items.
i and trust companies.
One-twentieth of 1 per- One-tenth of 1
per centcent.
Do.
Ono-fortfeth of 1 per ceni
Do.
One-tenth of 1 percent..
Do,
One-fortieth of I Der cent
Do.
.do
One-eighth of 1 per csnt. One-eighth of i
per cent.
One-tenth of 1 per cent.. One-tenth of 1
per cent.
One-fortieth of 1 per cent
Do.
.do
Do.
One-tenth of 1 per cent.,
Do.
.do
Do.
Do.
One-twentieth, of .1. per
cent.
i1
Do,
One-tenth of 1 per coat..
Do.
Discretionary
Bo.
.do
Discretionary.
..do.
Do.i
..do.
Ono-eighth of 1 per cent. One-eighth of l
per cent.
Discretionary
One-tenth of 1
per cent.
.do.
Discretionary.
One-eighth of 1 per cent, j One-eighth of 1
per cent.
One-tenth of 1 per cent..| One-tenth of 1
per cent.
One-twentieth of 1 per. f
Do.
cent.
Do.
One-fortieth of 1 per cent
Do.
.do
One-tenth of I per cent..
Do.
.do
Do.
Do.
One-twentieth of 1 per
cent.
Do.
D iscretionary
.do
Discretionary.*
One-tenth of 1
.do.
per cent.
Do.
..do.
One-eighth of I por cent. One-eighth of 1
per cent.
One-tenth of 1 per cent.. One-tenth of i
per cent.
.....do
Do.
Do.
..do.
Do.
One-twentieth of 1 per
cent.
\
One-tenth of 1 per cent..-!
Do.
One-twentieth "of 1 per i
Do.
cent.
" j
Discretionary
j
Do.
One-tenth of l per cent. .|
Do.
Discretionary .1
j
Do.
One-tenth of 1 per cent..t
Do.
One-twentieth "of 1 per j
Do.
cent.
" »
.do
Do.
One-tenth of 1 per cent., ,|
Do.
do
\
.....j
Do.
do
i
Do.
* See section 6.

SEC. 4. The charge for checks and drafts drawn- on banks,
bankers and trust companies located in Federal Reserve
cities and cities where Federal Reserve Bank branches
are at present or may hereafter be established, shall be
governed by the "Schedule showing when the proceeds
of items %vill become available," as published by the Federal Reserve Bank of New York from, time to time; that
is to say. for such items on said cities where immediate
credit is given and for such items which become available
one day after receipt, the charge shall be discretionary;
for such items available two days after receipt, the charge




M A R C H 1,191$.

shall be one-fortieth of 1 per cent; for such items available
four days after receipt the charge shall be one-twentieth
of 1 per cent; and for such items available eight days after
receipt, the charge shall be one-tenth of 1 per cent.
SEC. 5. In case the charge upon any item at the rates
above specified does not equal ten (10) cents, the collecting
bank shall charge not less than that sum; but all items received in any one deposit and subject to the same rate,
may be added together and treated as one item for the
purpose of determining the amount of exchange to be
charged.
SEC. 6. (a) On acceptances of banks, bankers, and trust
companies taken by member or clearing nonmember institutions the charge shall be governed by the "Schedule
showing when the proceeds of bankers' acceptances will
become available," as published hj the Federal Reserve
Bank of New York from time to time: that is to say, for
such items for which credit is available at the Federal
Reserve Bank of New York on the day of maturity, the
charge shall be discretionary; where credit is available at
said bank one or two days after maturity, one-fortieth of
1 per cent: where credit is available at said bank three or
four days after maturity, one-twentieth of 1 per cent:
where credit is available at said bank later than four days
after maturity, one-tenth of 1 per cent.
(6) All notes or ether time obligations, not provided for
in subdivision (a) of this section, purchased by member
or clearing nonmember institutions payable elsewhere
than in New York City, shall be subject to a charge of not
less than one-tenth of 1 per cent,, except that in the States
of Florida, Louisiana, Mississippi, New Mexico. North
Carolina, and South Carolina the charge shall be not less
than one-eighth of 1 per cent: Provided, however, That for
notes or other time obligations purchased or discounted
by any collecting bank, payable elsewhere than in New
York City, but with respect to which, the maker, indorser, or guarantor; or any bank, banker, or trust company maintaining an account with the collecting bank,
gives a written agreement at the time of such purchase or
discount that payment is to be provided in New York City
on date of maturity in New York funds at par, the charge
shall be discretionary.
SEC. 7. The charges herein specified shall in all cases
be collected at the time of deposit or not later than the
10th day of the following calendar month. No collecting
bank shall, directly or indirectly, allow any abatement,
rebate, or return for or on account of such charges or make
in any form, whether of interest on balances or otherwise,
any compensation therefor.
SEC. 8. In case any member of the association shall
learn that these rules and regulations have been violated
by any of the collecting banks, it shall immediately
report the facts to the chairman of the clearing-house
committee, or, in his absence, to the manager of the
association. Upon receiving information from any source
that there has been a violation of the same, said chairman, or, in his absence, said manager,, shall call a meeting

MARCH 1,1919.

FEDERAL RESERVE BULLETIN.

245

of the committee. The committee shall investigate the must be charged for in accordance with the within-named
facts and determine whether a formal hearing is necessary. rates.
Counsel has ruled that checks stamped "payable in
In case the committee so concludes, it shall instruct the
manager to formulate charges and. present them to the j exchange" are not negotiable; therefore, such checks
committee. A copy of these charges, together with j should not be accepted for deposit.
written notice of the time and place fixed for hearing j (e) 'When items subject to collection charges are reregarding the same, shall be served upon the collecting j turned unpaid, the charge may be remitted,
bank charged, with such violation, which shall have the j {/) Stocks, bonds, and coupons and drafts with bills of
right at the hearing to introduce such relevant evidence ! lading or collateral attached are subject to the rules govand submit such, argument as it may desire. The com- j erning collection charges,
mittee shall hear whatever relevant evidence may be * (g) Any agreement, expressed, or implied, entered into
offered by any person and whatever arguments may be ] by a clearing-house member or by a nonmember clearing
submitted and shall determine whether the charges are j through a member, with any individual, firm, or corporasustained. In case it reaches the conclusion that they \ tion. by the terms of which it is intended that the rate
are, the committee shell call & special meeting of the j of interest agreed to be paid on deposits is to offset and
association and report thereto 'the facts with its con- j compensate for charges made on out-of-town checks, is a
elusions. If the report of the committee is approved by j violation of clearing-house rules, and if brought to the
the association, the collecting bank charged with, such j attention of the committee, will be dealt with as provided
violation shall pay to the association the sum of $5,000, ] by section 8 of the clearing-house rules and regulations
and in case of a second violation o! these rules and regula-) relating to the charges on out-of-town items}.
tions, any collecting bank may also in the discretion of \
The- circular transmitted by the Federal
the association be excluded from using its privileges j
Reserve Bank of New York referred to is as
directly or indirectly, and, If it is a member, expelled \
from the association.
! follows:
Resolved, That the foregoing rules and regulations are | [Circular No. 147. Federal Reserve Bank oi New York. Feb. 26,3919.
hereby established and adopted, to take effect upon the 3 Schedule showing when proceeds of bankers'* acceptances will be
12th day of August, 1918 r
j available if collected through the Federal Reserve Bank of New York.]
RULINGS AND INTERPRETATIONS OF SOME OF THE ITORH- j
GOING RULES AND REGULATIONS.
\

(a) All applications for rulings on regulations regarding j
collection charges must be made in writing and addressed !
to the clearing-hoiise committee. All rulings will, be !
pnnted and sent to members and other institutions con- \
nected with, the New York Clearing House.
i
(b) The clearing-house rules contemplate the charging j
of collection rates on all out-of-town items, from whatever \
source derived, unless otherwise provided in the rules, \
This ruling is made comprehensive in order to meet !|
ingenious cases for evasion.
j
(c) A ruling has been asked on the following:
A suggestion that drafts be deposited in other than
discretionary cities with the correspondents of a New
York Clearing House member in such cities, to the credit
of such, member, the depositor to receive credit in the
New York institution at par immediately upon notification of such, deposit, and to be allowed to draw against
such credits the same as against New York fundsIt is held that this and similar cases are in contravention
of clearing-house rules. If exceptions were allowed, the
flood of cases would practically nullify the rules.
In the case of bought paper the broker should allow tho
charge as part oi: the purchase,
(d) No exception is made to the general rules governing
collection charges for items drawn "with exchange." or
bearing similar phrases, or when stamped "collectible at
par through any Federal Reserve Bank." Such items




On and after March 1, 1919, bankers' acceptances will
be received by the Federal Reserve Bank of New York
for collection from its member banks and from Federal
Reserve Banks, but bankers' acceptances payable at New
York Clearing Souse banks will not be .received from
clearing-house members.
By arrangements completed with all other Federal
Reserve Banks the proceeds of bankers' acceptances payable in cities where Federal Reserve Banks or their
branches are at present or may hereafter be established
will be available, subject to payment, on day of maturity.
Proceeds of bankers' acceptances payable elsewhere
than in Federal Reserve or Federal Reserve branch cities
will be available, subject to payment, one or more days
after maturity, until further 'notice; in accordance with
the following schedule:
District.
1. Boston
2. New York
3. Philadelphia..
4. Cleveland
S. Richmond,

Credit available at | Credit, for items payable
maturity for items ] elsewhere in district
payable In—
? available,
Boston, Mass
.....i; Ida: alter maturity,
iy
New Yorfc,N. Y
Buffalo, N*. Y.
!
Do,
Philadelphia, Pa
;
Bo.
Claveianil, Ohio........1
Do.
Do.
Cincinnati, Ohio......
Do.
Pittsburgh, Pa.
2 days after maturity for
Richmond, Va.
Maryland. District of
Columbia, and Virpir.ia:
3 days after maturity
for West Virginia, North
Carolina, and Souto
Carolina.
Da
Baltimore, McL

FEDERAL RESERVE BULLETIN

24:8

District.

6. Allanta

7.
8.

9.

Credit available at
maturity for items
payable in—

Credit lor items payable
elsewhere in district
available.

, Ga.

I day after maturity for
acceptances of member
banks only; acceptances
of Ronmembers w&en
collected.
Do.
Do.
T>o.
I day after maturity.
bo.
Do.
Do.
."Do.
Bo.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do,
Do.
Do.
Do.

New Orleans. La.
]
Jackson ville,'FU...... i
Birmingham. A l a . . . . . j
Chicago, 111.............
Chicago.,,...,
Detroit, Mirti.
....
St. Louis, Mo..
St. L o u i s —
Louisville, f C j . . . . . . . . .
Mom phis, Tenn
Little Rock, A r k . . . . . .
Minneapolis... Msruiaapoli?, Minn
St. Paul, Minn...
,
|
Kansas City... Kansas City, Mo
On>aha,Ncbr
...i
I Denver, Colo.
....•
Dallas
i Dallas. Tex
| El Paso, Tex
Ban Francisco.! San Francisco, Cal
! Spokane, Wash
i Portland, Orog.
i Peat tit\ Was hi
1 Salt Lake Cifcv. Utah..

MARCH 1,1010.

a program for the readjustment of prices for
basic materials in such a fashion as to create
a firm foundation on which the consumer can
base his future purchases, and the producer
can form necessary estimates. The Industrial
Board has the assistance of the Council of
National Defense.
The following is a summary of the industrial
situation and an outline of the work of the
board.
GENERAL CONDITIONS.

1. There exists at the present time an abnormal situation
in the industrial world. It is a condition of stagnation
!L
of business and industrial activity. Mills and factories
are idle or are producing but a small part of what they are
12,
capable of doing; building operations, now deferred for
several years, are not beginning, and, in fact, resumption
is not contemplated until the confused conditions of the
transition period are clarified. Many enterprises, such as
street-railway companies in various municipalities,
ACCEPTANCE COLLECTION SCHEDULE laboring under restrictions of charter contracts, are confronted with advanced wage scales and unprecedented
ADOPTED BY ALL FEDERAL RESERVE BANKS.
prices of materials needed for repairs and necessary
The Federal Reserve Board has been advised extensions. Unemployment exists and this unemployby all Federal "Reserve Banks that they are pre- ment is increasing at such a rate as to challenge the best
pared to collect bankers' acceptances received •thought that can be given to the situation.
from, or for the account of any Federal Reserve 2. One of the striking features of the present situation
is the high prices demanded for practically all articles
Bank, and that, subject to final payment, pro- and commodities of trade and commerce. This high-price
ceeds of such acceptances will be available in condition is undoubtedly the cause of most of the business
accordance with the schedule printed above. inactivity and, therefore, also is the cause of the wideThe items to be collected must be received by spread unemployment of labor.
the collecting Federal Reserve Bank or branch 3. The living costs of the present are unusually high
and will continue high until there are substantial reducin time for the presentation at maturity to the tions in the cost of the necessary staple foodstuffs.
accepting bank or the bank designated as the 4. A large and it is believed satisfactory latent buying
place of payment.
power exists in the country—an abundance of moneybut it is not being used to employ labor and to purchase
goods and materials.
5. The present conditions have come about by a series of
The Industrial Board of the Department of
1
unusual happenings due to the war. The industries and
Commerce.
labor of the country were diverted into new and unnatural
in order
Having received approval from the President channelsof the war.to mobilize all efforts possible in the
winning
of the plans proposed to readjust prices, The capacities of many factories were expanded, new
"The Industrial Board of the Department of ones built, abandoned plants remodeled and put into
Commerce'7 has been formed, composed of production, and industry was managed and operated in
representative men from industry, labor, and accordance with war necessities.
This control
and change of
the Government, who are being selected resulted in the and direction of effort of the ordinarypolicies
complete suspension
operaunder the chairmanship of George N. Peek, tion of the law of supply and demand, the demand for war
formerly vice chairman of the War Industries commodities, and the necessary agreements with indusBoard. They are to put into practical effect tries as to prices and terms of conversion of industry to war
work, etc., had the effect of inflating prices to an abnormal
' OHieial press statement,
extent, so as to encourage maximum production, even by
10.




MARCH 1,1919,

247

FEDERAL RESEBVE BULLETIN.

producers operating under the greatest handicaps and at the
highest costs. Prices were advanced disproportionately,
some articles showing increase in selling prices over prewar
prices of 250 per cent, while others showed but approximately 50 per cent. The lav/ of supply and demand is
really inoperative at the present time, for the reason that
it is found difficult, if not impossible^ for this law to resume
normal functioning on account of the fact that at the present time the price relations between the industries producing basic essentials are out of balance and not properly
adjusted to efficiently meet peace-time conditions,
8. It therefore is apparent that the trouble .resulting in
the present stagnant, unsatisfactory condition of industry
is due to the continuance of the high, uneven, unstable
prices of war times, which were, in many instanceu,agrecti
to by agencies of Government functioning for war purposes
and not to any unhealthy general condition. These abnormal prices still remain because there has been provided,
up to'this time, no agency to bring about the necessary
reductions.

PROGEDti RE—REMEDY,

1. It is h&iieved that a remedy for these conditions can
be had hy a comparatively simple program. As the
President has approved my appointing a board which
will make a study of the subject and take action thereon
and as it will be made plain that the Department of
Commerce and its board has the support of the President,
there can be no doubt that .industry generally will be
glad to cooperate with the board in an endeavor to arrive
at & solution of the difficulties.
2. Therefore, one of the first steps which the board
should take would be to call Into consultation and conference the leaders of Industry in such numbers and by
such groups as It may be felt is wise. Probably the first
of these conferences should be with representatives of
industries producing basic materials, such as Iron, steel,
lumber, textiles, cement, copper, brick, and other construction materials, and from, time to time thereafter
such others as may be deemed proper. It Is believed,
however, that industries dealing In finished products
SOME SUGGESTIONS WBICH OUGHT TO BE OBSJSRVKD IN will be able to largely (if not entirely) adjust their prices
SEEKING A SOLUTION OF THE PROBLEM.
in line with the above policy without material aid from,
1. A wise solution is equally important to the Govern- the committee.
3. At such conferences the general situation or condiment, to industry, and to labor, for their true interests are
so indissolubly connected and united that no detriment tions outlined above and as they may change up to the
can be suffered by one without a harmful effect and reac- time of the conference should be considered and carefully
understood, and the above mentioned principles which
tion upon the others.
2, The vital need of the situation is resumption of indus- ought to apply and govern the solution of the problems
trial activity to the fullest extent possible, and it should be should a'iso be fully understood Mid appreciated. It
the aim to find the wisest and most effective way to accom- •is believed that these principles and views will be readily
accepted by the great; majority of those called into conplish this.
8. It is felt that the proper basis of selling prices for the ference and further that if any of those who come into
present will be found to be upon a scale higher than those conference question these principles and views, a discusof the prewar days. However, the level should be estab- sion thereof in the conference will, without any considerlished on the lowest plane possible, having due regard for able delay, lead to a unanimous acceptance thereof.
4. In addition to giving assistance to industry in reachindustry, labor, and Government. The announcement of
such a plane of prices will immediately create confidence ing satisfactory price bases the board ought to be able to
give valuable advice in regard to such questions as the
in the buying public.
4. It is believed that the reductions from the high prices disposal of surplus war materials, it being desirable to
to the proper level, so that consumers may be justified in accomplish this in such a way as to have as little detrimental effect as possible upon private industrial activities.
buying, should be made at once by one reduction.
It will be the endeavor of the board to act promptly
The effort should be to wholly eliminate the abnormal,
unbalanced stimulation that business has had and the by consulting and interchanging views with these repreInflated prices that have resulted, and to start anew upon sentatives of industry In the fullest and freest manner
B, normal level, and thereafter, industry, having adopted possible, with a view to aiding and assisting industry in
that level, can safely rely upon the law of supply and de- general to resume activities to the fullest practicable
mand to govern future values. Such a policy adopted and extent. The immediate object is to bring about such
announced will, it is believed, when understood hy the reduced prices as will bring the buying power of the
consumers, induce at once sufficient buying to start fac- Government Itself, including the railroads, telephones,
tories, fill empty yards and warerooms, &&d to inaugurate and telegraphs, into action and make it possible for the
j Government to state that it is •willing to be a buyer for
the interrupted building and other programs.
5. Industry and labor have a mutual interest in remedy- j its needs at the reduced prices. If these conferences
ing present conditions, but Industry should take the first result in such an understanding on the part of the
step by the reduction of prices of commodities and. should Government with respect to the Important basic industries concerning proper prices and base* for prices at
require of labor only reasonable aid.




248

FEDERAL RESERVE RT7LLETIK.

MAECH 1,

conform to the fiscal policy of the Government. Under
these circumstances the only way in which the expansion
of banking credits can be checked is by a reduction of civil
demands to correspond with the expanding needs for Government expenditure. The credit saved through this reduction of civil damands becomes available to the Govern*
merit through the purchase of Government securities or
through the payment of taxes. To the extent to which
such saving and resulting investment does not take place
Government obligations must be taken by the banks,
giving rise to credits to tho Government which create
additional purchasing power for the use of the Governj ment. This additional purchasing power, in turn, com(Signed)
WILLIAM C. REDFIELD,
Secretary of Commerce. j petes with the demands of private individuals, driving
up prices against the Government and against the civil
consumer and ultimately impairs the individual's purchasing power to an amount roughly equivalent to the
Conditions In the Gold Mining Industry.
impairment that might better have been brought about
The following report lias been rendered to through voluntary saving. The credit structure" thus
erected depends inevitably upon Government needs and
the Secretary of the Treasury under date of upon the willingness and ability of the community to
February 1 1 :
impose upon itself voluntary restraint in expenditure.
SIR: On November 2, 1918, your predecessor appointed In other words, the structure will be high if the community
the undersigned a committee to investigate present con- fails to save.
ditions in the gold mining industry and to study the
The results in {saving achieved in the United States were
problem carefully and thoroughly with a view to definitely remarkable but no program of saving can be instantly
ascertaining ail the difficulties confronting gold production put in effect and the expansion of the credit structure
and submitting suggestions of sane and sound methods of that took place under these circumstances was inevitable
relief.
and could not have been controlled through any reduction
The nature of the problem submitted to the committee in the gold reserve.
was well stated in the letter of Secretary McAdoo to DeleThis being so and a long war being believed in prospect,
gate Sulzer of Alaska, under date of June 10,1918, to which it was important to maintain a strong gold reserve in order
reference has been made in almost all resolutions or dis- that there might be no impairment of confidence in the
cussions of the subject since that time. * * *
convertibility of our currency and in our ability ultimately
At that time the war was at its height and there was to settle any international indebtedness in gold.
every prospect of a prolonged war. Contrary to the belief
The cessation of hostilities has radically changed this
apparently entertained in many quarters, the structure of situation, and with the change in the situation any need
banking credit in any country during war time does not of particular effort to promote or stimulate our gold prodepend very much, if at all, on the amount of gold that duction which may have existed has ceased. There is
can be made available as a reserve for that structure. now no danger of an impairment of confidence. The
Undoubtedly the rise in prices in this country since 1914 dimensions of our financial problems are becoming clear
is to a great extent due to the heavy importations of gold and we know that we can without permanent strain meet
during 1915 and 1916, but it does not follow that the export any financial requirement the Government will be willing
of a corresponding amount of gold at the present time to assume. Some further expansion of credit may result
would operate to bring down prices. As a matter of fact from our expenditures for demobilization and readjust*
it is the judgment of this committee that it would not so ment but we can look forward to a comparatively early
operate until we have reached or approached normal contraction of our credit structure with the attending cirpeace conditions. In time of peace the gold reserve is cumstances of a free gold market and a gold reserve that
undoubtedly an important factor in controlling the credit shall once more perform its normal function of regulating
structure, but in time of war that structure is determined credit conditions. That movement will, we believe, be
by other causes. This distinction is sometimes overlooked both preceded and accompanied by lower commodity
and much inaccurate thinking is due to this oversight. prices.
Under war conditions the imperative necessity of tha GovUnder these circumstances, there is in our opinion not
ernment for the production of war essentials determines need for artificial stimulation of gold production. Not
Government expenditure, and this expenditure can not only has any need therefor passed, but there have come
be modified to meet the banking needs of the country; on nto operation causes that will in due time restore all
fr>b.e contrary, the banking policies! of the country must
industry, including the mining of gold, to a normal basiswhich purchases may be made by it, and these are
approved by the board, It is believed that upon announcement thereof to the country in general the public will
feel justified in promptly beginning a program of extensive
buying.
Such a procedure will in substance establish Immediately a basis upon which to resume activities, and in
this way the law of supply and demand will be enabled
to come into play, and from that- time forward it will
control the changes and readjustments in selling prices
of materials and the trend of prices, it is believed, will
be upward and not downward.




MARCH 1,1919.

FEDEEAL EESEEVE BULLETIN.

249

Gold mining will then become again normally profitable | reporting discount and interest on time loans
and respond automatically to normal stimuli.
for taxation purposes:
It is therefore the judgment of this committee that no
F E B R U A R Y 11, 1919.
steps should be taken by the Government to stimulate or
Receipt is acknowledged of^your lettei^of F e b r u a r y 8,
4J
promote the production of gold.
i 1919, i n w h i c h y o u state:"
"" '"*" •*•*—"i*"
The representatives of the gold-mining interests very | ^' O n J a n u a r y 1,1918. we changed our m e t h o d of h a n d l i n g
properly based their suggestions for relief on the public | discount and interest on time loans. Up to this time all
necessity for a larger production of gold and not on the i discount and interest charged on loans had been credited
1
hardships suffered by them as parties interested in an directly to discount and interest, but at this date, the
industry in which the margin of profit had been rapidly actual amount of discount and interest, which had been
so credited and was still unearned, was ascertained,
shrinking, and in many cases had entirely disappeared credited to unearned account on our boolcs, and thereafter
or been turned into a loss. They recognized that such all discount and interest collected in advance was credited
diminishing profits and such losses were inevitable under to this account, our discount earned receiving credit
the shifting conditions of war, and that merely as producers for each day's actual earnings."
they had no better claim to relief than any other section of
You ask to be advised what course you should pursue in
the community suffering a reduction of profits or incurring the preparation of your income and war-excess profits tax
losses under the changing incidents of war conditions.
returns for the year 1918. The method of treating discount
In the course of its consideration of the subject referred and interest on time loans adopted by you on January 1,
to it, this committee has conferred with a committee 1918, has been generally recognized as the correct method
appointed by the American Gold Conference held at Reno of computing such income, and the Comptroller of the
in August, 1918, under the presidency of Gov. Emmet D. Currency has suggested the adoption of this method by all
Boyle, of Nevada. It has had the benefit of the very com- national banks. The amount of income from discount
plete survey of the conditions of the gold-mining industry and interest on time loans which you should report for
contained in the report dated October 30,1918, of the com- the year 1918 is the amount of such income actually
mittee appointed by the Secretary of the Interior to study earned during that year, and as the amount of such income
the gold situation, of which Hennen Jennings, Esq., was for the year 1917 and years prior thereto has been computed
chairman; and of the report dated November 29, 1918, of and reported upon a different method, amended returns
the gold-production committee appointed by the commis- should be filed showing the correct amount of such income
sioners of the British treasury under the chairmanship of for each year back to 1909, inclusive, or to the date of the
Lord Inchcape. They have conferred with or secured the organization of your bank, if it was organized subsequent
views of Prof. Irving Fischer and other eminent econo- to^l.909.
mists, besides which they have had referred to them a
(Signed)
DANIEL C. ROPER,
considerable volume of correspondence expressing widely
Commissioner.
varying views which had been received by the Secretary
of the Treasury and the Director of the Mint.
Method of Reporting Certain Items in CompIt is interesting to note that the British treasury comtroller's Call.
mittee arrived at the same conclusion as that which we
have reached.
On November 1, 1918, the Comptroller of
We can not refrain from expressing gratification at the
j Currency sent to all national banks the followsubstantial unanimity of opinion among those whose position or experience entitles their views to respectful con- ing notice:
sideration against suggested measures of relief that would
'l As it has been the custom of many national
have had a tendency to undermine or upset our standards i banks to credit discounts as collected direct to
of value.
j profits and to credit profits with accruing inRespectfully submitted.
I terest only after actual collection, it has been
ALBERT STRAUSS.
EDWIN F. GAY.
RAYMOND T. BAKER.
EMMETT I). BOYLE.
POPE YEATMAN.

! thought proper to give the banks a reasonable
| time to make the adjustments which will be
required in order to report accurately items
21 and 27 (interest earned but not collected,
and interest collected but not earned).
"Therefore national banks may exercise
Computation of Discount and Interest for
their discretion on this call as to including
items 21 and 27 in this report of condition
Taxation Purposes.
(i. e., Nov. 1, 1918). Banks will, however, be
The Commissioner of Internal Revenue has required to report these items correctly from
authorized the publication of the following January 1, 1919. They have had a reasonable
letter written in response to an inquiry from opportunity to adjust their books to show these
a national bank with reference to the method of items accurately. Notice has been printed in




250

MARCH1 1,1919.

FEDERAL RESERVE BULLETIN.

each report of condition since December 31,
1917, that banks should prepare for this
change."
On December 28, 1918, the Comptroller notified the banks that, due to the shortage of help
occasioned by sickness and the extra work
which the Government loans had entailed,
compliance with the above notice would not be
compulsory for the present.
Condition of National Banks.

The Comptroller of the Currency on February 10 issued the following statement relative
to the condition of national banks:

with November 1, 1918, and an increase of $2,573,000, as
compared with the same date of previous year.
The amount of Liberty bonds of the first, second, third,
and fourth loans owned by national banks on December 31,
1918, was reported at 8955,935,000, or 5.62 per cent of the
117,000,000,000 Liberty bonds placed.
In addition to the Liberty bonds the national banks
reported holdings of United States certificates of indebtedness on December 31, 1918, amounting to $982,125,000.
On December 31, 1918, the national banks reported that
the amount of money loaned by them on the security of
Liberty bonds was 81,020,436,000, and the amount of
money loaned by them on the security of certificates of
indebtedness was §36.607,000.
The reports show that the amount of Liberty bonds of all
four issues owned by national banks in the central reserve
cities of New York,Chicago, and St. Louis was $172,616,000;
in other reserve cities $250,707,000, and by the country
banks §532,612,000.
Of the United States certificates of indebtedness held
by the national banks., 8358,532,000 were owned by the
national banks of the three central reserve cities;
$266,419,000 by national banks in other reserve cities, and
by the country banks, 8357,174,000.
Of the money loaned by the national banks on Liberty
bonds, the national banks of the three central reserve
cities were loaning $423,677,000; national banks in other
reserve cities were loaning 3345,943,000; while the country
banks were loaning on Liberty bonds §250,816,000.
Of the 836,667,000 which was being loaned on United
States certificates of indebtedness, the central reserve
cities were loaning §13,875,000; national banks in other
reserve cities were loaning $20,249,000; while the country
national banks were loaning 82,543,000.
Of the §955,935,000 Liberty bonds owned by national
banks only 836,589,000 were the 3J per cent bonds of the
first issue.

For the first time in their history the resources of our
national banks, at the last call. December 31. 1918. passed
the $20,000,000,000 marl: and amounted to 820,042.224.000.
This is an increase of 8220,820,000 over the preceding call
of November 1, 1918, and an advance as compared with
December 31, 1917. of 81,968,916,000. These extraordinary figures tell us that the total resources of the national
banks of the United States have more than doubled
since January 7, 1911, when they amounted to only
$9,820,483,000, the increase in eight years having been
810,221,741,000.
The following figures give a comparison between the
statements of November 1, 1918. and December 31, 1918:
Deposits aggregated 815,423.081,000, an increase of
1371,608,000 over the greatest deposits ever previously
reached. Of the increase in deposits, 8101.356.000 was
represented by time deposits, the remainder of the increase
was in amount due to banks and bankers. Demand
deposits showed a slight reduction.
Loans and discounts December 31, 1918, amounted to
89,918,294,000. a reduction as compared with November 1,
1918, of 8178,646,000. The percentage of loans and discounts to deposits November 1. 1918, was 67.08 per cent,
State Banks and Trust Companies Admitted.
and on December 31, 1918, these had been reduced to
64.31 per cent.
The following list shows the State banks and
Bills payable and rediscounts on December 31, 1918, trust companies which have been admitted to
were 81,380,835,000, a reduction as compared with Novemmembership in the Federal Reserve System
ber 1, 1918,' of $186,156,000.
Of the $1,380,835,000 of bills payable and rediscounts during the month of February.
outstanding December 31, 1918, 8817,264,000 were bills
Nine hundred and seventy-three State inpayable with the Federal Reserve Banks; 861,564,000 stitutions are now members of the system,
were bills payable with other than Federal Reserve
Banks, while the liability for rediscounts due Federal having a total capital of §352,817,051, total
surplus of $403,812,242, and total resources of
Reserve Banks and others amounted to 8502,007,000.
United States bonds, including Liberty bonds and $7,382,801,351.
United States certificates of indebtedness, held DecemSurTotal
ber 31. 1918, amounted to $2,949,878,000, a reduction since
plus. resources.
ta
November 1. 1918. of 8206,434,000.
District No. 2.
Other bonds, securities, etc.. on December 31. 1918,
amounted to §1,683,071.000. an increase of $22,606,000.
The Hamilton Trust Co., Paterson, N. J.. $500,000 §400,000 89,408,688
Capital, surplus, and undivided profits of national banks
District No. 4.
on December 31, 1918, amounted to $2,293,613,000.
25,000
Union Banking Co., Columbiana, Ohio... 50, 000
605,190
The circulation of national banks December 31, 1918, Farmers Bank, McCutchinville, Ohio
30, 000
119,921
was §676,827,000, an increase of Si,129,000, as compared Citizens Bank, Shelby, Ohio
100, 000 * "46," 666" 1,186,778




t

Capital.

Surplus.

$25,000

325,000

Total
resources.

District No. 5.

The Home Bank. St. Matthews, S. C

$325,553

District No. 6.

Fickens County State Bank, Carroilton,
Ala . . .*

60.000

60,000

District No. 7.

Ridgely-Farmers State Bank, Springfield,

251

FEDERAL RESERVE BULLETIN.

MARCH 1, 1919.

Trustee, executor, administrator, registrar of stocks and
bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics—Continued.
National Bank of Commerce, New York City.
Union National Bank, Troy, N. Y.
Oneida National Bank, Utica, N. Y.
Ilion National Bank, Ilion. N. Y.
First National Bank, Brooklyn, N. Y
Peoples National Bank, Hoosick Falls, N. Y.
Westchester County National Bank, Peeksldll, N. Y.
Guardian of estates, assignee, receiver and committee of
estates of lunatics:
Lambertville National Bank, Lambcrtville, N. J.
Trustee, executor, administrator, guardian of estates,
assignee and receiver:
National Bank of Vcmon, Vemon, N. Y.

600,000

150,000
1,000
80,000
50,000

750,000
234,014
3,074,264
981,832

100,000

125,000

1,388,212

125,000

75,000

2,286,266

Wellington State Bank, Wellington, Tex. 50,000
Guaranty State Bank & Trust Co., Gatesville, Tex
50,000

25,000

357,166

8,000

304,255

138,580

3,000

797,852

DISTRICT NO. 4.

50,000

1,000

217,677

Trustee under a will, registrar of stocks and bonds, trustee
under a mortgage securing an issue of bonds, and such
other trust capacities, if any, as the proper courts in Ohio
may authorize:
Fifth-Third National Bank, Cincinnati, Ohio.
Merchants National Bank, Dayton, Ohio.
Winters National Bank, Dayton, Ohio.
Lebanon National Bank, Lebanon, Ohio.
First National Bank, Hamilton, Ohio.
Central National Bank, Marietta, Ohio.
First National Bank, Bellaire, Ohio.
Trustee, executor, administrator, registrar of stocks and
bonds, guardian of estates, assignee, receiver and committee of estates of lunatics:
W'arren National Bank, Warren, Pa.

25,000
Fanners State "Bank, Col'fax, ind
First Commercial Bank, Pontiac, Mich... 200,000
50,000
Wayne Savings Bank, Wayne, Mich
District No. 9.

State Savings Bank, Laurium, Mich

DISTRICT NO. 3.

District No. 10.

The Conqueror Trust Co., Joplin, Mo
District No. 11.

District No. 12.
Stockgrowers Bank & Trust Co., Pocatollo, Idaho
Iron Commercial & Savings Bank, Cedar
City Utah

The following members of the Federal Reserve System have converted into national banks: Farquahar Savings Bank, College Springs,
Iowa; Union Bank of Jaclcson, Mich.; Redmond Bank of Commerce,
Redmond, Oreg.

Acceptances to 100 Per Cent.

Since the issue of the February BULLETIN the
following banks have been authorized by the
Federal Reserve Board to accept drafts and bills
of exchange up to 100 per cent of their capital
and surplus:
Atlantic National Bank, Jacksonville, Fla.
Fletcher American National Bank, Indianapolis, Ind.
International Trust Co., Boston, Mass.
Commonwealth Trust Co., Boston, Mass.

Trustee, executor, administrator, registrar of stocks and
bonds, guardian of estates, assignee, receiver and committee of estates of lunatics:
First National Bank, Huntingdon, Pa.
First National Bank, Wrightsville, Pa.
National Bank of Chester County, West Chester, Pa.
Philadelphia National Bank, Philadelphia, Pa.
Guardian of estates, assignee, receiver and committee of
estates of lunatics:
Wyoming National Bank, Wilkes-Barre, Pa.

DISTRICT No.

6.

Guardian of estates and receiver:
First National Bank, Tuskaloosa, Ala.
First National Bank, Mobile, Ala.
Guardian of estates, assignee, receiver, and committee of
Fiduciary Powers Granted to National Banks,
estates of lunatics:
Peoples National Bank, McMinnville, Tenn.
The applications of the following banks for
LaGrange National Bank, LaGrange, Ga.
permission to act under section ll(k) of the Trustee, executor, administrator, guardian of estates, and
Federal Reserve act have been approved by the receiver:
Anniston National Bank, Anniston, Ala.
Federal Reserve Board during February:
Guardian of estates and committee of estates of lunatics:
Fourth and First National Bank, Nashville, Tenn.
DISTRICT No. 2.
Trustee, executor, administrator, registrar of stocks and
DISTRICT NO. 7.
bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics:
Trustee, executor, administrator, guardian of estates,
assignee, and receiver:
Little Falls National Bank, Little Falls, N. Y.
Old Second National Bank, Aurora, 111.
State National Bank, North Tonawanda, N. Y.
Joliet National Bank, Joliet, 111.
First National Bank, Port Jervis, N. Y.
Third National Bank, Rockford, 111.
Farmers & Manufacturers National Bank, PoughTrustee, executor, administrator, registrar of stocks and
keepsie, N. Y.
bonds, guardian of estates, assignee, and receiver:
Farmers National Bank, Rome, N. Y.
First National Bank, Linn Grove, Iowa,
Nassau National Bank, Brooklyn, N. Y.
First National Bank, Everly, Iowa.
Carthage National Bank, Carthage, N. Y.




252

FEDERAL, RESERVE BULLETIN.

MARCH 1,1919.

is seen that failures are fewer in number than
Trustee, executor, administrator, registrar of stocks and in January, 1918, in all of the 12 districts
bonds, guardian of estates, assignee, receiver, and com- except the eighth and eleventh, where no
change appears. In most cases the reductions
mittee of estates of lunatics:
Hannibal National Bank, Hannibal, Mo.
are sizable, while only in the third, fifth, and
National Bank of Commerce, St. Louis, Mo.
eleventh districts are increased liabilities shown.
Trustee, executor, administrator, guardian of estates,
DISTRICT NO. 8.

assignee, and receiver:
Farmers & Merchants National Bank, Nashville, 111.

Failures during January.

DISTRICT NO. 9.

Trustee, executor, administrator, registrar of stocks and
bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics:
First "National Bank, Bemidji, Minn.
First National Bank, Albert Lea, Minn.
Fergus Falls National Bank, Fergus Falls, Minn.
DISTRICT NO. 10.

Trustee, executor, administrator, registrar of stocks and
bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics:
Inter-State National Bank, Kansas City, Mo.
Trustee, executor, administrator, registrar of stocks and
bonds, guardian of estates, assignee, and receiver:
Commonwealth National Bank, Kansas City, Mo.
Guardian of estates, assignee, receiver, and committee of
estates of lunatics:
Tootle-Lacy National Bank, St. Joseph, Mo.

Nur nber.

Liabilities.

Districts.
1919

1919
66
134
35
58
34
43
74
60
25
26
48
70

First
Second
Third
Fourth
Fifth
Sixth
Seventh
Eighth.. .
Ninth
Tenth .
Eleventh
Twelfth
Total.. ..

1918
160
243
51
95
39
59
183
60
41
62
48
137

8850,345
3,258,200
976,464
1,103;950
617,155
376,517
988,347
654,396
203,589
320,331
695,082
692,022

81,671,615
5,474,984
705,692
1,292,797
496,483
391 985
2,581,533
981,566
316,366
3,932,938
455,538
977,290

673

1,178

10,736,398

19,278,787

1918

New National Bank Charters.

The Comptroller of the Currency reports the
following increases and reductions in the numDISTRICT N O . 12.
ber of national banks and the capital of naTrustee, executor, administrator, registrar of stocks and tional banks during the period from February
bonds, guardian of estates, assignee, receiver, and 1, 1919, to February 28, 1919, inclusive:

guardian of estates of lunatics:
Banks.
National Bank of Commerce, Seattle, Wash.
11
Trustee, executor, administrator, registrar of stocks and New charters issued to
With capital of
$575,000
bonds, guardian of estates, assignee, and receiver:
Increase of capital approved for
37
First National Bank, Pullman, Wash.
With new capital of
2.125,000
Aggregate number of new charters and banks
increasing capital
48
With aggregate of new capital authorized
2, 700, 000
Commercial Failures Reported.
Number of banks liquidating (other than
those consolidating with other national
Thus far the economic readjustments which banks under the act of June 3,1864)
10
1,450, 000
have inevitably followed the war's ending have Capital of same banks...
4
brought no increase in the country's business Number of banks reducing capital
Reduction of
2,080,000
mortality. Maintaining the highly favorable Total number capital* going into liquidation
of banks
features which have characterized the returns or reducing capital (other than those confor a long period, commercial failures in the solidating with other national banks under
the act
3, 1864)
14
United States during three weeks of February^ Aggregate of June reduction
capital
as reported by R. G. Dun & Co., numbered Consolidation of national banks under the 3, 530, 000
only 459, as against 752 in the same weeks of
actof Nov. 7, 1918
2
3, 000,000
1918, when the record was also gratifying. The Capital
shows the aggregate
exhibit for January, the latest month for which The foregoing statementfor the period of the
complete statistics are available, discloses only I of increased capitalstatement was
banks embraced in
2, 700,000
673 insolvencies, with $10,736,398 of liabilities. I Against this there was a reduction of capital
Not only are these figures well below the 1,178 | owing to liquidation (other than for'conbanks under
defaults, involving $19,278,787 of January, |! solidation with other nationalreductions of
the act of
1918, but the number of reverses is the smallest I capital of June 3, 1864) and
3, 530, 000

of any January on record, and only in January
of 1905, 1900, 1899, and 1898 was the indebted- |
Net decrease
830,000
ness below this year's. Comparing the Janu- 1
Includes two reductions
ary statement by Federal Reserve districts, it consolidations under the act of capital aggregating $2,045,000 incident to
of Nov. 7,1918.




MARCH 1,1919.

FEDERAL BESEEVE BUIXETIK".

253

RULINGS OF THE FEDERAL RESERVE BOARD.
Below are published rulings made by the
Federal Reserve Board which are believed to
be of interest to Federal Reserve Banks and
member banks.
Bankers' acceptances against open accounts of foreign
purchasers.

National banks can not accept drafts for the
purpose of enabling domestic concerns to extend credits on open account to foreign purchasers.
[See opinion of General Counsel in Law .Department.]

Domestic acceptances—Security and limitations.

Although section 13 of the Federal Reserve
act authorizes member banks to accept drafts
drawn in domestic transactions only when
secured at the time of acceptance by attached
shipping documents or warehouse receipts or
other such documents, nevertheless the security
may properly be released after acceptance;
provided, however, that in any case where the
total amount accepted for any one customer
exceeds 10 per cent of the capital and surplus of
the accepting bank the security can not be
released unless some other actual security




growing out of the same transaction is substituted therefor. A trust receipt which permits the customer for whom the draft is
accepted to obtain control of the goods is not
actual security for the purposes of this section
of the law.
Although the Federal Reserve Banks legally
may rediscount any draft which section 13
authorizes a member bank to accept, nevertheless such reserve banks are not required by
law to rediscount every such acceptance
tendered to them for that purpose, whether or
not it is secured at the time it is presented for
rediscount.
[See opinion of General Counsel in Law Department.]

Section 22 of the Federal Reserve Act.

The Federal Reserve Board is of the opinion
that there is nothing in the provisions of section 22 of the Federal Reserve Act, as amended
by the act of September 26, 1918, to prohibit
an officer of a national bank from receiving a
reasonable commission for his services as
trustee in a foreclosure proceeding in which his
bank is interested as a general creditor.

254

FEDERAL RESERVE BULLETIN.

MARCH 1,1919.

LAW DEPARTMENT.
The following opinions of General Counsel how directly the drafts drawn must be conhave been authorized for publication by the nected with the transaction involving the exBoard since the last edition of the BULLETIN: portation. Considering the general purposes
of the act, however, it is clearly contemplated
BANKERS' ACCEPTANCES AGAINST OPEN AC- that these credits were to be opened for the
COUNTS OF FOREIGN PURCHASERS.
purpose of facilitating international commerce;
An opinion has been asked on the following that is to say, to enable the parties to the
transaction actually to export and sell the
statement of facts:
goods. It was hardly the intention of Congress
"We should like to have your opinion and
advice as to a certain method of financing to authorize member banks to exercise this
export business, which has been proposed to power for the purpose of enabling domestic
us by one of our good customers, who are of concerns to extend credits on open account to
unquestioned standing.
foreign purchasers. In the opinion of this
"The company in question finds that competition, particularly with European sellers, is office the approval of this credit would require
compelling them to refrain from drawing drafts, a forced construction of the provisions of seceither sight or time, against shipments to cer- tion 13 of the Federal Reserve Act.
tain big buyers abroad. These buyers insist
JANUARY 29, 1919.
on having goods sent to them on open account,
and as the terms are frequently as long as 90
days, or even 4 months, it means that for a
South American shipment a delay of 6 or DOMESTIC ACCEPTANCES—SECURITY AND LIMITATIONS,
7 months can easily elapse from time of shipment from New York to receipt of proceeds
It appears that some confusion of thought
in New York, even when the bill is paid withexists in the minds of certain officers of Federal
out extension of original terms. To help him
finance such a class of business, he proposes Reserve Banks and member banks as to the
that at regular intervals (to illustrate, once a Board's interpretation of those provisions of
week) he will exhibit duplicate invoices and section 13 of the Federal Reserve Act which
duplicate documents, showing shipments actu- relate (1) to the power of member banks to acally made during the past week, and ask us
to accept his time draft on us, for 90 days, with cept drafts drawn in domestic transactions;
privilege of one or two renewals, if necessary, (2) to the eligibility for rediscount by Federal
to aid him in carrying the load on these exports Reserve Banks of member bank acceptances.
until returns are received/7
It is understood that the provisions in quesThe question to be determined is whether tion have been interpreted by the Board in
drafts drawn under the foregoing circumstances various rulings, as follows:
may be treated as growing out of a transaction
TO ACCEPT DRAFTS DRAWN
involving the importation or exportation of POWER OF MEMBER BANKS TRANSACTIONS.
IN DOMESTIC
goods ?
Subject to the limitations prescribed by the
Although it is clear that there has been an
exportation of goods, it does not appear that Act, member banks are authorized—
the drafts in question can be said to have grown
(a) To accept drafts or bills of exchange
out of the transaction which involved the exwhich grow out of transactions involvportation, within the meaning of the act.
ing the domestic shipment of goods,
As previously pointed out the language used
provided shipping documents conveyin the act is broad enough to vest in the Board
ing or securing title are attached at the
a wide discretion to determine how remotely or
time of acceptance.




MARCH 1, 1919.

FEDERAL. RESERVE BULLETIN.

255

an actual security such as is required by this
provision of the Act. In an opinion filed by
this office on October 12, 1917, and printed on
page 881 of the November, 1917, BULLETIN, it
was stated—
"that a trust receipt which permits the purAll drafts accepted in domestic transactions chaser of the goods to obtain control of those
goods either for milling or other purposes is
must therefore be secured at the time of accept- not an actual security within the meaning of
ance either by shipping documents or warehouse the Act, and that, therefore, acceptances
receipts or other such documents, as specified in secured by such trust receipts come within the
the law. If the aggregate amount of drafts 10 per cent limitation imposed by section 13.
accepted for one person, firm, or corporation j "A different situation results, of course, in
any case where the trust receipt is of such a
exceeds a sum equal to 10 per cent of the capital character as not to permit the purchaser to
and surplus of the accepting bank, such drafts, gain control of the goods as where they are
whether in a foreign or domestic transaction, held for the account of the acceptor by some
must remain secured throughout the life of the person, warehouse, or corporation independent
of the borrower/7
draft since the Act provides that—
The view expressed in this opinion has been
"No member bank shall accept, whether in a
followed by the Federal Reserve Board in
foreign or domestic transaction, for any one
person, * * * to an amount equal at any various rulings relating not only to the purtime in the aggregate to more than 10 per chaser in a transaction involving a sale, but
centum of its paid-up and unimpaired capital also to any customer for whom a draft is
stock and surplus, unless the bank is secured accepted, regardless of whether or not there is
either by attached documents or by some
other actual security growing out of the same an actual sale of the goods covered by the
documents attached to the draft.
transaction as the acceptance/7
(h) To accept drafts or bills of exchange
which are secured at ilie time of accept,
ance by warehouse receipts or other
such documents conveying or securing
title covering readily marketable staples.

To give this language any meaning it must be ELIGIBILITY YOU REDISCOUNT OF MEMBER BANK ACCEPTANCES.
assumed that the accepting bank may, if it
chooses, release the security in any case in
Under the terms of section 13 any draft or
which the total amount accepted for any one bill of exchange which a member bank has the
customer does not exceed 10 per cent of its power to accept under the provisions of that
capital stock and surplus. Unless this inter- section is technically eligible for rediscount by a
pretation is placed upon the statute, the pro- Federal Reserve Bank. This does not mean,
vision just quoted would be meaningless in so however, that Federal Reserve Banks are refar as it relates to domestic transactions, since quired by law to rediscount every such
all drafts accepted in domestic transactions acceptance tendered to them for that purpose.
must be secured at the time of acceptance.
In developing a general market for acceptances
In any case, however, where the total amount the Federal Reserve Banks are necessarily called
accepted for any one customer exceeds 10 per upon to carry a large amount of this class of
cent of the capital stock and surplus of the paper, but it is important that the Federal
accepting bank the security legally can not be Reserve Board and the Federal Reserve Banks
released unless some other actual security grow- should take all necessary steps to insure coning out of the same transaction as the accept- servatism in the exercise of the acceptance
ance is substituted therefor. This immediately power by member banks. The policy of the
raises the question as to whether or not the Board, therefore, as reflected in its various
ordinary trust receipt substituted for shipping rulings, has been to caution Federal Reserve
documents, warehouse receipts, etc., constitutes Banks that in rediscounting drafts accepted in




256

FEDERAL RESERVE BULLETIN.

MARCH 1,1919.

domestic transactions they should consider and ping documents securing accepted drafts must
in many cases investigate the circumstances be released in order that the customer for whom
under which the draft was accepted in order to • the draft was accepted may procure the goods
determine whether or not the particular | represented by such documents. It also rectransaction complies with the spirit as well as | ognizes the fact that where such drafts are secured by warehouse receipts it is probable that
the letter of the statute.
It was in view of this policy that the Federal at some period during the life of the draft it
Reserve Board has consistently refrained from may be necessary for the receipt to be surrenencouraging Federal Reserve Banks to redis- dered to the customer for whom the draft is
count or purchase warehouse acceptances after accepted in order that the transaction involved
the warehouse receipts have been released, may be consummated. In the case of shipping
though there is nothing in the lay/ which pro- documents it is ordinarily necessary to release
hibits the rediscount of such acceptances. It the documents at an earlier period than in the
is recognized, however, that an unrestricted case of warehouse receipts.
In either case, as a matter of policy the sepolicy of rediscounting or purchasing such acceptances after the warehouse receipts have curity should not be surrendered by the acceptbeen released might very probably lead to an ing bank until this becomes necessary in order
abuse of the domestic acceptance privilege by for the transaction to be consummated and even
facilitating the use of the warehouse receipt as when surrendered, banking prudence requires
a mere cloak for a straight loan in violation of that the bank protect itself by procuring either
the provisions of section 5200. It can not be a trust receipt or a definite agreement on the
stated, of course, as a hard and fast rule that the part of the customer to whom the security is
acceptance of a draft secured by a warehouse surrendered that the proceeds derived from the
receipt was not a bona fide transaction merely sale of the goods represented by the shipping
and solely because the warehouse receipt has documents or warehouse receipts will be deposbeen surrendered before the acceptance is pre- ited with the accepting bank when available to
sented to the Federal Reserve Bank for redis- pay the draft at maturity and will not be used
count. It should, however, put the bank on by the customer for other purposes. It should
notice and should suggest extreme caution in be remembered, however, as previously stated,
order to determine whether in fact the accep- that in any case where a trust receipt is subtance complies in every way with both the let- stituted the 10 per cent limit applies if the trust
ter and spirit of the law. When Congress receipt is such as to give control over the goods
granted the power to accept drafts in domestic to the borrower or the customer for whom the
transactions, it clearly intended to facilitate draft was accepted.
FEBRUARY 28, 1919.
domestic commerce and did not contemplate
that this power should be used for the purpose
of extending unreasonable lines of credit to
TAXATION OF DIVIDENDS DECLARED TO
individual borrowers in substantial violation
INCREASE CAPITAL.
of the limitations of section 5200 of the Revised Statutes. If Congress had intended to
The following letter has been received from
give greater latitude to banks under its juris- the Commissioner of Internal Revenue with
diction in the matter of loans of this character reference to the taxation of dividends declared
a much more direct method would have been to out of surplus for the purpose of increasing
remove or to broaden the limitations of section the capital stock of a bank:
5200.
FEBRUARY 28, 1919.
The Board has recognized the fact, however, SIR: Keceipt is acknowledged of your letter of Febthat in the ordinary course of business, ship- ruary 11, 1919, requesting information so that a proper




MABCH 1,1919.

reply may be given to the following telegram received by
you from one of the Federal Reserve Banks:
" Please advise if dividend from surplus to increase the
capital stock of a bank is subject to taxation."
It is not clear what this question means. If the bank
declares a cash dividend in pursuance of a plan by which
all or part of the stockholders are to pay back to the bank
the amount so paid, in exchange for new stock, these
dividends are taxable to the extent tJiat any other cash
dividends are taxable under the act. If, on the other
hand, a stock dividend is declared, it is subject to the
rules laid down in the act with, reference to stock
dividends.
A distribution by a corporation out of earnings or profits
accumulated prior to March 1, 1913, or out of any assets
except earnings or profits accumulated since February 28,
1913, is not a dividend within the meaning of the statute.
A distribution by a personal service corporation out of
earnings or profits accumulated since December 31, 1917,
is not a dividend. A distribution out of earnings or
profits accumulated before March 1, 1913, is free from tax
as a dividend; out of assets other than earnings or profits
accumulated since February 28, 1913, may or may not be
free from tax, according as each stockholder receives more
or less than he paid for his stock or its fair market value as
of March 1, 1913, and, in the case of a personal service
corporation, out of earnings or profits accumulated since
December 31, 1917, is taxed to the stockholders as though
they were partners.
Dividends paid in securities OP other property (other
than its own stock), in which the earnings of a corporation
have been invested, are income to the recipients to the
amount of the fair market value of such property when
receivable by the stockholders. A dividend paid in stock
of another corporation is not a stock dividend. Where a
corporation declares a dividend payable in stock of another
corporation, setting aside the stock to be so distributed
and notifying the stockholders of its action, the income
arising to the recipients of such stock is its fair market
value at the time the dividend becomes payable. Scrip




257

FEDERAL RESERVE BULLETIN.

dividends are subject to tax in the year in which the
warrants are issued.
A dividend paid in stock of the corporation is income to
the amount of the earnings of profits distributed, as shown
by the transfer of surplus to capital account on the books of
the corporation, usually equal to the par value of the stock
distributed. But stock distributions made out of surplus
other than earnings or profits accumulated since February
28,1913, are not dividends within the meaning of the statute
and are free from tax as dividends. Stock dividends paid
from earnings or profits accumulated after February 28y
1913, received by a fiduciary and retained as an accretion
to the estate under the terms of the will or trust, are income
to the estate.
Any stock dividend received by a taxpayer between
January 1 and November 1,1918, or declared and credited
to a stockholder during such period and received by him
before the expiration of 30 days after the passage of the
statute, is deemed to have been paid from the most recently accumulated earnings or profits and shall be taxed
to the recipient at the rates prescribed for the years in
which the corporation accumulated the earnings or profits
so distributed. Thus, such a stock dividend will be
deemed to have been paid from the earnings of 1918
(unless paid during the first 60 days of 1918), and the
recipient, if an individual, will be liable to any surtax
at the rates for the year 1918, unless at the time such dividend was paid or credited the current earnings up to that
time were not sufficient to cover the distribution, in which
case the excess over the earnings of the taxable year will
be deemed to have been paid from the most recently
accumulated surplus of prior years and will be taxed
at the rate or rates for the year or years in which earned.
A corporation declaring and paying such a stock dividend
out of earnings accumulated over a period of years should
make a record in its books of the amount of the dividend
paid out of each year's undistributed profits and advise
the stockholders accordingly.
Respectfully,
(Signed)

DANIEL C. ROPER,

Commissioner.

258

FEDERAL RESERVE BULLETIN.

BANK TRANSACTIONS DURING JANUARYFEBRUARY.
Debits to individual account reported by
clearing-house banks in 151 leading centers for
the four weeks ending February 19 averaged
about 9 per cent less than for the preceding five
weeks, reflecting somewhat the slackening in
trade and industry and the hand-to-mouth
buying during the more recent period. It
should be noted, however, that bank transactions about the close of 1918 and during most of
January were unusually heavy, averaging over
9 per cent in excess of like transactions during
the four weeks immediately preceding.
Large declines in the figures for the second
week in February are due to the fact that owing
to the observance of Lincoln's birthday as a
holiday by the banks in the leading centers,
the reported figures for that week cover five
days only.
Figures of debits to bank account on the
whole follow a parallel course, all the districts,
just as in the case of debits to individual account, showing smaller totals than for the immediately preceding period.
The following circular instructions have been
sent to Federal Eeserve agents and to clearinghouse managers:




MARCH 1,1919.

FOR THE GUIDANCE OF FEDERAL RESERVE AGENTS.

In reporting weekly debits to bank account. Federal
Eeserve Banks should include debits to members' reserve
account and nonmembers' clearing account only. Do
not include any debits on account of transactions with
other Federal Reserve banks. Debits to special depositary
banks shown on the books of the Fiscal Agent Department
should not be included with debits to either Government
or bank account.
FOR THE GUIDANCE OF CLEARING-HOUSE MANAGERS.

1. Reports should be confined to the banks which are
members of the local clearing house, or which clear through
clearing-house members (so-called clearing house nonmember banks). In order that we may be able to follow
more intelligently changes in the weekly figures, may we
request that your telegraphic reports state in addition to
total debits also number of banks covered by the report.
2. Debits to individual account should include all debits
charged to the accounts of individuals, firms, and corporations, also of the United States Government, including
debits to war-loan deposit account. Checks and other
debits against savings accounts and payments from trust
accounts, also certificates of deposit paid should be
reported among debits to individual account.
3. Debits to bank account should include all debits to
account of banks and bankers, exclusive of (a) debits to
account of Federal Reserve bank, (6) debits in settlement
of clearing-house balances. It is important that the report
show aggregate debits to individual account separately
from aggregate debits to bank account.

259

FEDERAL RESERVE BULLETIN.

MARCH 1, 1919.

Weekly figures of clearing-house bank debits to deposit accounts.
[In thousands of dollars, i. e., 000 omitted.]
Debits to individual account.

Debits to banks' and bankers' account.

District.
Jan. 29.
No. 1—Boston:
Bangor
Boston
Fall River
Hartford
Holyoke
Lowell
New Bedford
New Haven
Providence
Springfield
Waterburv
Worcester'
No. 2—New York:
Albany
Binghamton
Buffalo
New York
Passaic
Rochester
Syracuse
No. 3—Philadelphia:
Altoona.....'
Chester
Harrisburg
Johnstown
Lancaster
Philadelphia
Reading
Scranton
Trenton
Wilkes-Barre
"VVilliamsport
Wilmington
York....
No. 4—Cleveland:
Akron
Cincinnati
Cleveland
Columbus
Dayton
Erie
Greenshurg, Pa
Lexington, Kv
Oil City
."
Pittsburgh
Springfield
Toledo
Wheeling
Youngstown
No. 5—Richmond:
Baltimore
Charleston
Charlotte
Columbia
Norfolk
Raleigh
Richmond
No. 6—Atlanta:
Atlanta
Augusta
Birmingham
Chattanooga
Jacksonville
Knoxvillo
Macon
Mobile..
Montgomery
Nashville
New Orleans
Pensacola
Savannah
Tampa
Vicksburg
No. 7—Chicago:
Bay City
Bloomington
Cedar Rapids
Chicago
Davenport
Decatur, 111
DesMoines
Detroit




Feb. 5.

! Feb. 11-12.

Feb. 19.

Jan. 29.

Feb. 5.

Feb. 11-12.

Feb. 19.

I
2,131
229,283
6,220
16,227
2,663 ,
5,336 I
5,714 j
18,946 :
29,166
12,508
5,891
12,843

3,105 !
272,062
7,218
19,497
3,168 j
5,278 '
6,172 !
17,011!
27,942
14,401
6,981
14,738

2,245
220,036
6,166
13,744
2,304
4,240
5,573
11,067
25,736
12,305
4,606
11,900

2,730
226,339
5,325

306
190,969
443
2,012
892
522
246
589
1,451
698
563
1,600

12,652

12,166

8,386

8,647

li,236
1,584,480
203
634
506

9,i70
1,704,622
465
746
447

6,627
1,328,967
204
612
495

10,657
1,689,166
352
559
592

71
17
168
55
354,048

3
171
56
318,047

25
2
152
193
263,982

68
5
181
71
346,270

1,550
302
73
312

i,970
275
154
384

1,410
80
69
274

1,810
318
109
240

54

42

31

16,955
50,494
119,997
22,240
10,103
6,198
2,308
10,872
2,741
154,753
2,749
22,461
7,561
9,695

47
652
42,335
101,302
2,850
512
64

112
47,416
102,925
3,280
433
215

36
39,436
99,050
3,110
401
59

108
42,591
116,028
3,409
348
47

6,311
3,211
320,370
1,985
7,182
8,506
1,047

11,702
2,433
316,025
2,432
6,436
7,267
945

7,482
2,661
268,386
1,688
7,091
6,482
1,095

7,851
2,636
325,236
2,153
6,550
7,657
629

18,181
3,009
4,799
6,591
16,540
28,365
12,604
7,164
13,488

20,858
2,960
53,456
3,736,138
i
2,917
21,618
:
12,438

14,353
3,238
59,034
4,302,842
3,554
27,324
18,588

17,923
2,193
37,725
2.901,788
3,202
18,614
9,956

14,976
2,968
62,840
3,881,924
3,241
26,581
12,308

2,230
5,503
4,905
2,299
3,564
268,552
3,428
12,589
7,774
4,444
2,981
8,920
2,611

2,471
5,228
4,826
3,162
4,222
306;129
3,613
11,545
10,014
6,366
2,802
10,673
3,006

1,802
3,684
4,383
1,822
2,721
222,493
3,029
10,286
7,744
5,261
2,415
6; 641
2,639

2 528
4 980
5,937
2,916
4,329
302,813
4,641
10,798
12,796
6,729
2,846
8,926
3,090

:
:
:

,

:

.=
!
i
!
:

,

!

i
...!
!
,
|
|
i
\
"
•
i
:
=
i
!

16,045
52,211
125,878
21,525
10,545
6,524
3,537
9,716 '
1,756
175,877
3,157
21,351
10,716
14,287
\
72,921 !
6,690 !
6,300
5,824
19,449
5,319 !
24,196 j
I
23,548 j
6,446
9,685
7,591
10,583
4,758
4,944
6,413
4,145
18,964
69,239
2,071
12,301
4,594
1,874

17,123
57,547
125,756
25,220
11,176
6,863
2,765
10,510
2,432
167,172
2,372
21,406
10,888
12,835

2,848
2,227
4,440
544,374
5,931
2,884
16,020
93,136 i

2,374 I
2,340
5,432
623,177
8,454 i
3,125 I
18,233 !
107,015 •

16,086
49,168
103,922
21,812
10,877
5,858
2,760
8,951
1,984
154,406
2,717
21,449
6,481
12,550

367
178,068
562
1,193
499
280
280
679
1,462
621
419
1,266

279
177,228
422
1,234
698
398
110
,506
1,643
522
661
1,413

271
183,991
587
1,659
539
240
287
629
1,757
324
653
1,310

81,360
7,704 i
5,600 ]
6,488
17,494 |
5,570
30,846

69,191
6,376
5,111
9,215 i
18,970 i
3,565 I
25,080 ;

74,982
6,378
5,500
6,857
18,498
5,900
22,177

38,439
3,285
8,000
3,402
19,369
3,283
80,267

42,305
3,352
7,900
2,448
24,457
3,200
74,659

38,330
2,913
6,576
3,000
24,270
2,481
77,780

39,915
2,914
8,100
2,641
22,738
2,900
68,313

26,024
6,687
14,291
10,040
10,910
6,180
5,360
6.977
4; 370
19,061
71,910
2,154
12,416
4,327
2,142

27,835 j
5,682 !
13,451 I
7,208
9,944 I
5,335
4,535
6,501 ;
3,703 I
17,190 !
62,285 j
1,861 j
11 737
4,346
1,945

23,027
5,707
11,004
9,012
9,903
5,769
4,495
6,527
5,839
18,855
65,198
2,266
11,722
4,707
1,604

26,444
2,070
8,105
4,604
10,322
1,939
3,221
961
719
13,822
38,807
993
9,632
1,775
150

25,087
2,086
3,530
3,901
8,922
1,636
3,029
683
555
13,469
37,279
874
8,489
1,501
232

28,034
1,947
3,621
3,654
9,967
1,554
2,825
840
513
13,405
37,090
920
8,290
1,783
164

21,508
1,975
3,970
4,431
7,826
1,924
2,519
972
439
12,649
42,516
1,043
7,586
1,577
87

3,076
2,388
3,495
614,073
8,421
2,917
18,172
130,534

444
1,097
8,111
554,959
1,870
558
36,253
42,380

564
895
9,211
579,627
2,460
525
36,104
41,346

330
756
5,664
433,252
1,704
455
28,081
30,784

473
893
9,685
629,074
2,239
527
37,478
48,832

2,440
1,831
5,050
436,154
6,202
2,229
15,205
68,400

260

FEDERAL RESERVE BUIiLETIN.

MARCH 1,1919.

Weeklyfiguresof clearing-house bank debits to deposit accounts—Continued.
[In thousands of dollars, i. e., 000 omitted.]
Debits to banks' and bankers' account.

Debits to individual account.
District.
Jan. 29.
No. 7—Chicago—Continued.
Dubuque
Flint
Fort Wayne
Grand Rapids
Indianapolis
Kalamazoo
Lansing
Milwaukee
Peoria
Rockford, 111
Sioux City, Iowa
South Bend
Springfield, Hi
Waterloo, Iowa
No. 8—St. Louis:
E vansville
Little Rock
Louisville
Memphis
St. Louis
No. 9—Minneapolis:
Aberdeen
Billings
Duluth
Fargo
Grand Forks
Great Falls
Helena
Minneapolis
St. Paul
Superior
Winona
No. 10—-Kansas City:
Atchison
Bartlesville, Okla
Colorado Springs
Denver
Joplin
Kansas City, Kans
Kansas City, Mo
Muskogee, Okla
Oklahoma City
Omaha
Pueblo
St. Joseph
Topeka
Tulsa
Wichita
No. 11—Dallas:
Albuquerque
Austin
Beaumont
•
Dallas
El Paso
Fort Worth
Galveston
Houston
San Antonio
Shreveport
Texarkana
Tucson
Waco
No. 12—San Francisco:
Boise
Fresno...
Long Beach
Los Angeles
Oakland
Ogden
Pasadena
Portland
Reno
Sacramento
Salt Lake City.
San Diego
San Francisco
Seattle
Spokane
.Stockton
Tacoma
Yakima




1.800
^293
4'569
16,602
26,693
2,644
3,125
49,411
10,362
4,033
16,765

Feb. 5.

Feb. 11-12.

1,700
3,900
3,919
14,742
22,635
2,239
2,904
50,728
10.090
3', 595
16,609
2,332
2,792
2,391

Feb. 19.

2,021
3,725
4,671
13,890
32,674
3,338
4,307
48,654
12,590
4,979
15.273
3 . 167
'
2; 918
2,925

Jan. 29.
1,000
19
1,599
4,364
22,714
407
147
27,622
1,949
84
14,679

Feb. 5.

Feb. 11-12.

Feb. 19.

1,640
1,109

2,000
89
1,606
4,067
22,120
439
171
28,659
2,310
135
14.695
l',876
1,798
1,260

1,250
' 24
1,335
3,097
17,819
384
85
26,829
1,915
117
16,110
1,190
1,645
1,019

1,267
23
1,593
3,958
25,613
462
195
26,082
2,323
210
11,131
2,178
2,286
1,227

2,851
2,854

2,300
5,163
5,154
14,777
24,670
3,250
3,476
59,628
11,637
4,822
14,747
3,803
2,662
3,263

4,252
7,689
41,643
28,703
129,907

2,605
7,695
40,924
29; 220
154,953

2,279
6,839
41.959
25,301
124,323

3,300
7,263
50,130
26,161
128,110

1,246
6,650
38,007
24,254
126,470

1,548
6,432
41,147
21,974
120,015

812
5,871
40,216
22,300
120,866

1,714
7,020
40,216
24,401.
123,731

1,130
1,04'.)
29,534
L763
1,062
2,925
2,352
64,792
34,833
1,300
901

1,257
1,7G3
25,525
2,537
1,197
3,249
2,016
67,776
38,196
1,422
1,217

992
1,431
15,533
1,732
1,187
2,981
2,113
42,993
29,106
1,811
978

1,284
2,066
14,082
1,541
1.180
3; 126
2,281
62,127
36,793
1,830
950

974
1,009
3,676
2,089
1,149
4,164
2,936
73,683
42,682
98
824

1,061
772
3,386
2,417
1,250
3,985
2,566
68,027
44,020
135
755

752
1,063
4,271
1,784
1,005
4,264
2,394
52,421
32.617
124
589

973901
4,418
1,185
1,088
3,922
2,959
69,247
41,605
117
877

810
1,733
1,809

939
2,5S5
2.210
31.; 785
3,243
3,120
85,428
3,133
12,939
64;564
4,505
21,226
5,631
17,421

1,002
2,066
1,691
23,144
3,145
3,221
82,612
3,291
11,049
45,106
3,216
18,516
3,803
18,552
9,750

781
2,351
2,111
26,138
2,888
3,249
84,119
3,074
12,791
63,486
4,121
16,729
5,195
18,223
7,055

596
66
574
22,144
614
5,151
162,846
2,132
11,622
60,672
838
18,468
1,370
7,190
11,528

526
54
762
22,650
525
5,343
166,887
2,383
12,111
62,355
827
18,386
1,849
7,749
13,451

496
66
563
16,607
444
5,122
103,918
2,040
9,529
50,175
712
17,943
1,483
8,253
12,347

44
42
901
19,604
508
4,877
158,679
1,776
11,123
57,627
949
13,751
1,734
9,106
13,057

1,191
3,542
3,680
28,901
5,919
17,2S1
6,303
24,271
a f, 617
5,222
997
1,678
3,063

1,686
3,841
4,582
29,749
6,659
19,146
6,288
25,091
o 6,107
3,694
1,6S1
1,933
3,055

1,313
2,703
3,769
24,340
5,649
16,336
5,667
18,679
a 5,427
3,828
1,259
I,8fi7
2,485

1,331
4,470
4,691

3,481
3,093
334
61,546
8,384
42,268
3,991
43,064

4,143
3,187
583
69,843
8,668
41,194
4,214
46,548

3,757
2,637
487
57,688
7,028
36,178
4,540
37,090

3,435
4,022
443
72,868
9,243
41,839
3,382
50,792

4,327
387
1,569
2,180

4,482
477
1,549
2,005

5,203
418
1,560
1,689

3,757
476
1,317
2,027

2,365
5,156
2,322
54,512
10,614
3,690
2,744
36,571
1,508
11,366
13,343
4,654
128,852
42,249
7,238
4,139
9,432
1.523

2,472
5.845
2', 652
62.125
13', 133
3,298
2,767
30,018
1,695
15,336
14,633
5,7(58

2,018
5,170
2,083
46,217
11.749
3,570
2,097
26,022
1,345
9,288
11,673
4,156
115,922

4,711
3,379
65
35,715
2,728
5,261
319
22,159
1,504
4,374
22,172
222
97,288
20,954
7,056
2,460
7.803
'439

6,094
3,450
123
40,014
2.817
4,021
300
22,679
1,611
6,021
21,064
383
110,798
24,304
7,471
2,616
6,685
342

4,528
2,598
101
30,788
2,794
5,311
300
15,781
1,250
4,253
16,262
382
82,702
16,468
6,720
1,767
5,808
377

3,613
3,255
89
46,700'
2,019
5,506
306
26,321
1,812
5,712
21,936
407
111,265
23,770
7,802
3,371
7,554
499

27,515
2,767
3,065
78,456
2.604
12;895
59,454
3,199
22.059
3', 718
18,790
7,866

171,171
43.949
8.804

3; .wo
9; 21.4
1,908

27,368
0,1525
3,174
8.107
1,570

7,121
17,300
5,421
27,918
o7,496
4,789
1,844
1,579
3,823
1,845
5,913
2,782
68,820
11,141
3,713
3.445
42;418
2,218
11,610
14,651
5,571
167,053
42,199
8,854
4,940
10,34.2

a Figures comprise debits to individual as well as to banks' and bankers' account.

261

FEDERAL RESERVE BULLETIN.

MARCH 1,1919.

Recapitulation showingfiguresfor clearing-house centers reporting for each of the four weeks.
[In thousands of dollars i. e., 000 omitted.]
Debits to individual account.
included.

29<

Feb. 5.

Feb. 11-12.: Feb. 19. ; Jan. 29.

Feb. 5.

Feb. 11-12.

345,115
4,004,83(5
373,329
4.39,127
! 338,202
! 185,635
! 935,041
I 214', 964
i 127,260
I 252,311
! 124,771
I 409,523

Feb. 19.

346,728
3,850,385
329'. 800
473,125
140, (599
187,13(3
817,862
212.194
142,241
246,740
108.670
342; 278

397,571
4,428,931
374,057
474,005
155,0(52
202,849
925,099
235,397
14(3,155
268,551
113,512
404.2S8

319,922
2,991,401
274.920
419;021
137,508
183,558
675,755
200,701
100,857
230,1(54
93,322
288.754

185,114
1,609,711
356,641
496,327
156,045
123,5(54
723,005
196,627
133)284
305,811
174,624
238,609

200,291
1,727,616
321,114
501,621
158,321
111,273
750,081
191,116
128,374
315,858
186,893
260,793

185,696
1,345,291
266,229
434,977
155,330
114,607
572,655
190.065
101.284
289,698
158,275
198;196

192,247
1,709,973
349,103
515,243
147,521
111,022
805,571
197,082
127,292
293,778
193,601
271,937

7,197,808

No. 1—Boston
No. 2—New York
No. 3—Philadelphia...
No. 4—Cleveland
No. 5—Richmond
No. 6—Atlanta
No. 7—Chicago
No. 8—St. Louis
No. 9—Minneapolis...
No. 10—Kansas City..
No. 11—Dallas....;...
•No. 12—San Francisco
Total

TaR

Debits to banks' and bankers' account.

S,126,137

5,915,883' 7,550,204 I 4,699,362

4,853,351

4,012,303

4,914,370

siery (women's combed peeler cotton hose),
oleomargarine, shirtings (bleached, Lonsdale
In continuation of figures shown in the Feb- and Hough Rider), and women's dress goods
ruary BULLETIN there are presented below (French serge). The source from which the
monthly index numbers of wholesale prices for quotations for Portland cement and for lime
the period July, 1918, to January, 1919, com- j are drawn has been changed. Index numbers
pared with like figures for January of previous | for January are provisional, due to the fact
years, also for July, 1914, the month immedi- that certain data were not received in time to
ately preceding the outbreak of the great war. render them available for use in the calculaThe general index number is that of the tions.
United States Bureau of Labor Statistics. In
A considerable fall in prices between Decemaddition, there are presented separate numbers ber and January is indicated in the table
for certain particular classes of commodities in which follows. The general index number of
accordance with plans announced in previous the Bureau of- Labor Statistics has decreased
issues of the BULLETIN.
from 208 to 202. The decrease has been
Quotations for four commodities, namely, general, as is shown by the fact that the index
butter (prime first, San Francisco), canned number for each of the 3 groups of commodities
goods (tomatoes, standard, New Jersey) and has fallen. The decrease has been greatest
underwear, merino (shirts and drawers, and in the case of the group of producers' goods,
union suits) have been omitted. On the other the index number for which shows a further
hand, quotations for Hour (buckwheat, New decrease from 199 to 194. Increases occurred
York) arillings (brown Pepperell), sheetings, only in several cases among commodities inbrown (4-4 Pepperell), and bleached (10-4 cluded in the group. Among these may be
Pepperell), suitings (Middlesex, blue, 15 ounce), mentioned chrome calf leather, oleo oil/ and
and tobacco, smoking (Bull Durham), which wood alcohol. On the other hand decreases
had been dropped temporarily have been se- in price were considerable in many instances,
cured for the months of December and January, and occurred for an extended list of commodiand the commodities were again included in the ties. Among these were certain metal products,
calculation of the index number for the latter ; such as bar iron, steel billets am! plates,
month. In addition to the above changes, the ' copx>er wire, tin plate, zinc sheets and pipe,
usual annual revision of the list of commodi- botn lead and cast iron, cotton and worsted
ties has been made. The quotation for flour yarns, wood pulp, jute and rope, tallow, certain
at Minneapolis is now for standard patents, chemicals, such as soda ash, caustic soda,
instead of for standard war, as during the glycerin, paint materials—in particular linseed
year 1918. Pure rye flour is now quoted on a oil and carbonate of lead—rosin, and rubber.
barrel basis. Freight has been added in the
The index number for the group of raw
case of structural steel and of barbed galvan- materials has decreased from 198 to 195. The
ized wire, while discounts are now used lor bar index numbers for all subgroups within this
iron (best refined), shingles (red cedar), ho- group have likewise fallen. Tne decrease is




WHOLESALE PRICES.

262

MARCH 1,1919.

FEDERAL, RESERVE BULLETIN.

least pronounced in the case of the animal
products subgroup, the index number for
which shows a decrease from 208 to 207.
Slight increases in the prices of cattle, poultry,
and sheep, also goatskins, were almost offset
by decreases in the prices of packer hides and
silk, while decreases in the price of various
grades of wool account for the entire decrease
in the number for the group. The index
number for the farm products sub group has
fallen from 237 to 232. While wheat has
either remained constant or, in the case of
winter wheat, increased in price, and the price
of hops has also risen, the increases are much
more than offset by decreases in the prices of
corn, cotton, oats, and tobacco, as well as to a
lesser extent by decreases in the prices of
flax and hay. The index number for the
forest products subgroup has decreased from
150 to 147. The decrease is due to the fall
in the prices of plain and quartered white oak
and poplar, which was not offset by slight
increases in the prices of Douglas fir and maple.
None of the commodities included in the
mineral products subgroup have risen in
price, and by far the larger number remain
Index numbers ofwholesale

unchanged. The further decrease in the index
number of the subgroup, from 182 to 177, is
due to decreases in the prices of coke, copper
ingots, pig iron, pig lead, and spelter.
The index number for the group of consumers7 goods has fallen from 216 to 212. This
is the first decrease in the number which has
occurred since March, 1918. Considerable diversity is, however, exhibited by the fluctuations in the prices of the commodities included
in the group. Increases in price occurred in
the cases of certain meats, in particular beef
(New York quotation), lamb and mutton, and
poultry, wrapping paper, whisky, peanuts,
potatoes, apples, glucose, and cotton blankets,
and slight increases in certain of the quotations
for wheat flour. These increases, however,
were much more than offset by decreases in the
prices of certain cotton textiles, among which
should be mentioned underwear, ginghams,
print cloths, tickings, sheetings, shirtings and
drillings, certain meats, such as bacon and
hams, lard, wheat flour (Kansas Cit}^ quotation), corn meal, coffee, beans, lemons and
oranges, illuminating oil, and the usual considerable seasonal decreases in butter and eggs.

prices in the United States for principal classes of commodities.
[Average price for 1913=100.]
Raw materials.

Year and month.

July, 1914
January, 1915
January, 1916
January, 1917
January, 1918
July, 1918
August, 1918
September, 1918.
October, 1918
November, 1918..
December, 1918..
January, 1919

Farm
products.

Animal
products.

Forest
products.

Mineral
products.

102
108
116
161
240
237
246
255
240
234
237
232

106
97
102
136
174
209
215
219
209
208
208
207

97
94
95
99
130
140
143
143
143
150
150
147

88
85
108
175
171
180
180
180
181
183
182
177

All commodities
Producers' Consumers' (Bureau of
JLabor Stagoods.
goods.
Total raw
tistics index
materials.
number).
98
96
106
147
183
196
200
204
198
197
198
195

92
94
119
166
181
196
199
203
205
205
199
194

103
103
111
147
192
202
205
209
210
214
216
212

99
98
110
150
185
198
202
207
204
206
206
202

In order to give a more concrete illustration j for certain commodities of a basic character,
of actual price movements there are also pre- j The actual average monthly prices shown in
sented in the following table monthly actual | the table have been abstracted from the records
and relative figures covering the same period j of the United States Bureau of Labor Statistics.




MARCH 1,1919.

263

FEDERAL RESERVE BULLETIN.

Average monthly wholesale prices of commodities.
[Average price for 1913=100.]
Corn. No. 3,
Chicago.

Cotton, middling, Wheat, No. 1, ! Wheat, No. 2,
northern spring, J red winter,
New Orleans.
Minneapolis. I
Chicago.

Year and month.
| Average
j rice per

Relative
price.

July, 1914
January, 1915
January, 1916
January, 1917
January, 1918
July, 1918
August, 1918
September, 1918
October, 1918

; SO. 7044
•
. 7056
;
.7356
'. .9753
;
1.6850
1.5900
1.6225
1.5313
1.3270

N o v e m b e r , 1918
December, 1918
January, 1919

•• 1.2675
! 1.4290
1.3750

114
115
120
158
274
258
264
249
216
206
232
223

Hogs, light,
Chicago.

Average
price per
pound,

SO. 1331 !
.0783 j
.1205 !
.1735 ;
.3105 i
.2945 :
.3038 !
.3578 :
.3150 !
.3007 i
.2958 !
.2850 j

Relative
price.

Average
price per
bushel.

105
62
95
137
244
232
239

SO. 8971
1.3527
1.2894
1.9166
2.1700
2.1700
2.2231
2.2169
2.2155
2.2206
2.2205
2. 2225

237
233
223

Wool, Ohio, £ - |
grades, scoured.

Relative
price.

Average
price per
bushel.

103
SO. 8210
155
1.3910
148
1. 2896
219
1.9024
248
2.1700
248
2.2470
255
2.2325
254 ! 2.2363
254 | 2. 2345
254 I 2.2375
254 | 2.3088
254
2.3788

Hemlock,
New York.

Cattle, steers,
good to choice,
Chicago.

Average
Rela- price per
tive
100
price. pounds.
83
141
131
193
220
228
226
227
227
227
234
241

Yellow pine,
flooring,
New York.

S9.2188
8.5333
8. 6650
10.5300
13.1125
17.6250
17.8250
18. 4100
17.8563
18.1563
18.3600
18.4125

Hides, packers',
heavy native
steers, Chicago.
Average i Relaprice per j tive
pound. | price.

108
100
102
124
154
207
210
216
210
213
216
216

U938 !
.2300
.2300
.3350
.3280
.3240
.3000
.3000
.3000
.2900
.2900
.2800

i
j
i
!
j
!
i
!
I
!
i

105
125
125
182
178
176
163
163
163
158

158
152

Coal, anthracite, Coal, bituminous,
stove, New York
run of mine,
tidewater.
Cincinnati.

Year and month.
Avi
price per
pound.

pounds. I
July, 1914
January, 1915...
January, 1916...
January, 1917...
January, 1918...
July, 1918
August, 1918
September, 1918
October, 1918...
November, 1918.
December, 1918.
January, 1919...

$8.7563 j
6.9875 !
7.1400 i
10.6050
16.2125
18.0000
19.7750
20.0700
18.0938
17.7063
17.4400
17.4125

104
83
84
125
192
213
234
237
214
209
206
206

Coal, Poeahontas, Norfolk.

80.4444
.5143
.6429
.8143
1.4545
1. 4365
1.4365
1.4365
1.4365
1.4365
1.4365
1.1200

Rela- Average Rela- Average Rela- I Average Rela- Average Relative price per tive price per tive | price per tive price per tive
price. M feet. price. M feet. price. I long ton. price. short ton. price.
94
109
136
173
309
305
305
305
305
305
305
255

Coke, Connellsville.

S24.5000
24.2500
22.2500
24.5000
30.5000
34.5000

36.0000

101
100
92
101
126
142

$42.0000
41.0000
39.5000
41.5000
57.0000
60.0000
63.0000
63.0000
I 63.0000
I 63.0000
63.0000
149 63.0000

Copper, ingot,
electrolytic,
New York.

92
89
93
128
135
141
141
141
141
141
141

Lead, pig,
desilverized,
New York.

84.9726
5.1767
5.2639
6.5000
6.5968
6.5992
6.9000
6.9000
7.8071
7.9500
7.9500

102
104
112
128
130
130
136
136
140
143
143

Petroleum, crude,
Pennsylvania!
at wells.

$2.2000
2.2000
2.2000
4.5000
3.6000
4.1000
4.1000
4.1000
4.1000
4.1000
4.1000
4.1000

100
100
100
205
164
186
186
186
186
186
186
186

Pig iron, basic.

Year and month.
Average
price per
long ton.
July, 1914
January, 1915...
January, 1916...
January, 1917...
January, 1918...
July, 1918
August, 1918
September, 1918
October, 1918...
November, 1918.
December, 1918.
January, 1919...




S3.0000
2.8500
3.0000
6.0000
4.4120
4.6320
[. 6320 i
L 6320 I
1.6320 !

Rela- Average Rela- Average Rela- Average Rela- Average Rela- Average Relative price per tive price per tive price per tive price per tive price per tive
price. short ton. price. pound. price. pound. price. barrel. price. long ton. price.
100
95
100
200
147
154
154
154
154
154
154
154

SI. 8750
1.6250
2.8750
7.2500
6.0000
6.0000
6.0000
6.0000
6.0000
6.0000
6.0000
5.7813

77
67
118
297
246
246
246
246
246
246
246
237

SO. 1340
.1300
.2288
. 2950
.2350
.2550
.2600
.2600
.2600
.2600
.2540
. 2038

85
83
145
188
149
162
165
165
165
165
161
130

SO. 0390
.0380
.0550
.0750
.0684
.0802
. 0805
.0805
. 0805
. 0805
. 0667
.0558

86
125
170
155
182
183
183
183
183
152
127

SI. 7500
1.4500
2.2500
2.8500
3.7500
4.0000
4.0000
4.0000
4.0000
4.0000
4.0000
4.0000

71 S13.0000
59 12.5000
92 17.8100
116 30.0000
153 33.0000
163 32.0000
163 32.0000
163 32.0000
163 33.0000
163 33.0000
163 33.0000
163 30.0000

85
121
204
224
218
218
218
224
224
224
204

264

FEDERAL RESERVE BULLETIN.

Average monthly loholesale prices of

MARCH 1,1919.

commodities—Continued.

[Average price for 1913=100.]
Cotton yarns,
northern cones,
10/1.

July. 1914
January, 1915..
January, 1916.
January, 1917.,
January, 1918..

Steel, rails, open
hearth.
Pittsburgh.

Worsted yarns,
2-32rs, crossbred,

!
Average Rela- Average i Rela- Average Rela- I Average j Rela- Average Relaprice per tive price per I tive price per ti e ! p i per! ti
price pe
tive
price p tive price per tive
! i
pound. price. pound, I price.
pound.
ton.
rice
pound
price
price. | pound, price. iong ton. price.

Year and month.

Average Relaprice per tive
pound, i price.

SO. 2150
.1650
.2100
.3400
.5363

97
75
95
154
242

SO. 3050 i

108 S19.0000

.3250 i
.5700
.4900

115
203174

19.2500
32.0000
03.0000
47.5000

.4900
.4900
.4900
.4900
.4900
.4900 |
.4900 j

174
174
174
174
174
174
174

47.5000
47.5000
47.5000
47.5000
47.5000
45.1000
43.5000

I
!
;
j
j
!
!
i

.6412 !
.6400 !
.6100 !;
.6100
.5927 |
.5500 j
.5000 •
i

2G0
289
276
276

226

good native
steers, Chicago.

! Average Rela- Average
• price per tive price per
'
price. pound.
; pound.

July
August
September
October
November
December
January, 1919




! 30.1350
1 .1300
i
. 1375
j
.1375
\
.1750
|
\
|
;
j
I
i

.2400
.2420
. 2450
.2450
. 2450
- 2450
. 2450

I

184 I
184
184
184
184
175
169

!
;
|
!
i
!
i

.0325
.0325
.0325
.0325
.0325
.0310
.0300

220
220
220
220
220

Coffee, Rio N o . 7.

Year and month.

1918.

76
74
141
291
220

Flour, wheat,
standard patents, Hams, smoked,
1914-1917, 1919,
Chicago.
standard war, 1918,
Minneapolis.

Beef carcass,

July, 1914
January, 1915
January, 1916
January, 1917
January, 1918

! S0.0113
.0110
i
.0208
I
.0430
.0325
!

74
75
124
244
184

!
i
i
!

S30.0000
30.0000
30.0000
40.0000
46.8000 •

100
loo
100
133
156

i 80.6500
.6200
!
i
! 1.2500 I
! 2.0000 I

84
80
115
161
257

57.0000 I
57.0000 i
57.0000 i
57.0000 I
57.0000 I
57.0000 i
57.0000 •!
i

190
190
190
190
190
190
190

2.1500 I
2.1500
2.1500
2.1500
2.1500
2.0000
1.7500

277
277
277
277
277
257
225

I

1918.

July
August
September
October
November
December
January, 1919

Steel, plates,
tank, Pittsburgh.

Steel, billets,
Bessemer,
Pittsburgh.

Leather, sole,
hemlock No. 1.

104
100
106
106
135

.0855
.0853
.0959
. 1040
. 1069
.1725
.1547

Relative
price.

$4.5938
6.8563
6.6438
9.2105
10.0850

100
150
145
201
220

10.7020
10.2100
10.2100
10.2100 !
10.2100 |
10.2100 j
10.2750 i

233
223
223
223
223

. 0882
.0725
.0763
.0975

185
187
189
189
189
189
189

Rela- Average
tive price per
price.
barrel.

77
77
77
86
93
96
155
139

Illuminating oil,
150° fire test,
New York.

Rela- i Average
tive | price per
price. . gallon.

Average j Relaprice per i tive
pound. | price.

SO. 1769
. 1538
. 1588
.1945
.2950
j
!
!
•

223 i
224 ;

Sugar, granulated,
New York.

106
93
96
117
177

.1200
.1300 I
.1200 j
.1600 !

97
97
105
97
130

.3025
.3225
. 3281
.3361
. 3541
.3670
.3494

182
194
197
202
213
221
210

. 1710 ]
.1750 |
.1750 I
.1750 !
.1750 i
.1750 |
.1750 i

139
142
142
142
142
142
142

80.0420
.0488
.0573
.0662
.0744

j
|
j
i
!

.0735 ;
.0735 i
.0845
.0882
.0882
.0882 i

98
114
134
155
174
172
172
198
207
207
207
207

MABCH 1,

1919.

FEDERAL RESERVE BULLETIN.

DISCOUNT AND INTEREST RATES.
In the following tabl&s are presented actual
discount and interest rates prevailing in the
various cities in which the several Federal Reserve Banks and their branches are located during the 30-day periods ending January 15 and
February 15, 1919. Quotations are given for
prime commercial paper, both customers' and
purchased in the open market, interbank loans,
bankers' acceptances, and paper secured by
prime stock exchange or other current collateral. Separate rates are quoted for paper
of longer or shorter maturities in the first named
and last named classes. In addition quotations are given for commodity paper secured by
warehouse receipts and for cattle loans, as reported from centers in which such paper is
current.
Quotations are also given of rates charged on
ordinary loans to customers secured by Liberty
bonds and certificates of indebtedness. Assistance to customers to enable them to purchase
such Government obligations has generally been
extended at lower rates, either at the rate borne
by such obligations or at a rate slightly higher.
The table also shows quotations in New York
for demand paper secured by prime bankers'
acceptances, a type of paper which made its
appearance in the New York market several
months ago. Quotations for new types of
paper will be added from time to time as
deemed of interest.
During the period under review, the decrease
which had been remarked for the periods ending December 15 and January 15 on the whole
has continued, though to a lesser extent. In
certain cases, among which may be mentioned




265

the three large eastern centers, Chicago, St.
Louis, and Salt Lake City, the decrease occurs
for the majority of the types of paper for which
quotations are given. Rates in other cases,
however, have remained firm, though no instances of pronounced increase in rates are
noted. There has been a tendency for customary rates charged on prime commercial
paper purchased in the open market to decline,
though for other types of paper such rates in
general, with few exceptions, remain unchanged, the movement in rates in general
being confined to changes in the high and low
quotations. Rates charged on prime commercial paper purchased in the open market
exhibit the most marked decrease. In a number of centers, among which may be mentioned
Richmond, Jacksonville, Louisville, and San
Francisco, lower rates for this type of paper
are shown during the period ending February
15 than during the period ending January 15,
while rates for customer's paper remain practically unchanged. For the latter type of
paper, however, as also for time paper secured
by prime stock exchange or other current
collateral, a slight tendency to decrease in
rates may be noted. On the other hand, rates
for bankers' acceptances in general have been
firm, and in Philadelphia and New York (in
the latter for indorsed acceptances only) have
shown a tendency toward a slight fractional
increase, while in Chicago and Minneapolis
there has been a tendency toward decline.
Rates on paper secured by Liberty bonds and
certificates of indebtedness, which on the whole
are lower than on ordinary commercial loans,
or on loans secured by other collateral, remain
practically unchanged.

fcO

Discount and interest rates prevailing in various centers.
DURING 30-DAY P E R I O D E N D I N G JAN. 15.
Prime commercial paper.
District.

City.

Boston
Now York a..
Philadelphia..
Cleveland
Pittsburgh...
Cincinnati
No. 5 . . . Richmond
Baltimore
No. 6.... Atlanta
Birmingham..
Jacksonville..
New Orleans.
No. 7 . . Chicago
Detroit
No. 8.. St. Louis
Louisville
Memphis
No. 9.. Minneapolis..
No. 10. Kansas City..
Omaha
Denver
No. 11. ; Dallas
i El Paso
No. 12. j San Francisco
; Portland
' Seattle
Spokane
Salt Lake City
No.
No.
No.
No.

No.
No.
No.
No.

1..
2..
3..
4..

1..
2..
3..
4..

No. 5 . . .
No. 6 . .
No. 7..,
No. 8..
No. 9 . .
No. 10.
No. 11.
No. 12.

Customers.
4 to 6
30 to 90
days.
months.
"HTLT'C.
61 5 6
6 5 51-6
6 51 6
6 5 6
6 6 6
6 5J 6
6 6 6
5-1 6
7 4 6
8 6 6
8 6 7
64 5 | 6
6 51 5£-6
6 5 6
6 5£ 6
6 5} 6
6 5 6
6 5% 6
6 5 6
6 54 6
8 0 6
8 6 6

Boston
New York &..
Philadelphia..
Cleveland
Pittsburgh...
Cincinnati
Richmond
Baltimore
Atlanta
! 7
Birmingham..
Jacksonville..
New Orleans.
Chicago
Detroit
St. Louis
Louisville
Memphis
Minneapolis..
Kansas City..
Omaha
Denver
Dallas
El Paso
San Francisco
Portland
Seattle
Spokane
Salt Lake

77. L.

a

Open market.
30 to 90 I 4 to 6
days,
j months.
77. L. C. II. L. C.

Indorsed.

II.
54 52 54
44 54-6 6
6
54
5 52 6"
6
6
6 6 51
6
5? 52 5£
54
6 6 6 6
6
6 !8 5
8
64 ! 64 6 64 6
6 I
6
54 6 5 54 6

54 6 61 5 54 i 61
5 52-6
5 5f 6 5 51-6! 6
5 4
6 5
5 6 i 6
6 6
2
5 5L I 6
6 6
54 6 6
6

6

51
52
6
5
6
6
5

5 5-i-6

5 6
54 6
54 6
5
6 ...
52 G j 54 5
5
6 16 54
54 6 64 5
6
6 6 51

5J 6
6 6
6 64
54 ! 6

Bankers' acceptances,
60 to 90 days.

Interbank
loans.

6
6
5
6

L. C.
5 54
42 5-54
5 54
5 5
.54 6
5 54
54 6
54 54
54 6
6 6
6 6
5

ii. L. a

42

4!

0
6

a

6 4 41-6
4 | 4ft 4 |

V

4X

G
6
7
6

6 0
6 6
6 64
6 6"

4ft 4ft 4ft

54 54-6 44 4ft 44
54 6 |
5 6 j 6 41 6
5 5 |
'
5 6 |5 5 5

?8?
5 5 5
5 41 4*
6

6 6

6 6

6

5
4§

4 44-5
4J 41
4£ 44

41 4g
4^ 41

42 4g 42
5 5 5

54

2

5
51
5
5
O

6
Bh
54
51

6

6
6
6
6
6
51
52

5

5
5
5
5
6
5
5|

oh-

2

5 6
G 5
54 5

4§
0
5

54 6
5" 5

6 i
G i 7 6
61 ! 6 54

-

4ft 4ft

6
G I 6
51 5} j 6
5 02 1 6

G 6
51 4
5j
5 54
"

8 6 6
54 5 5-5*
0
5;i
5 6

8 G 6
6 5 51-54
6 5 5
.
V
64 5 G

54 5 5

54 5 5

4]

G

41 4ft 41

41 4ft 4ft

6 6
6 6

6 4j 6
41 4ft 4-1
44 41 41

6

6

6

6

6

6

6

6

6

G

G

6

5

4
5
5

t

54 6 41-54

¥

6
5

5*

6

5

G

6
8
8
6

6
6
6
6

6

54 5.1-

?

8
10
'•10

6

8 7

6
6
8

77. L. C.
5 414-1
6 4-1 4.1-5
6 4142
6 41
6 41 6
5,4141
6 4141
54 41 5
6 41 6
6
8 41 41-6
6
G 6 6
7
6 4i 5
6
5 41 41
6 41 6
6 41 54
6 416
6 41 5
54 54 5 5

77. L. C.

6

6
6
6

?

6 41 6

7 5 5J-6
6 41 6
6 6" 6
8 78
6 41
G 41 G

6
8
8

G
5
6
6
6
7

6
6
8.
7
64
6
6
6
6
6
6
7
8
8
6
8
6
8

54 52 6 5J 5 ,
5 5i I 6 5 51-6
5 54-5 6 54 6
5 6
5 6
6 6
6 6
G 0
6 6
G (
5
6 6
5^ 52
5 52
6 6
6 6
6 (
>
6 G
6 7
6 7
54 6
5 6
5 i)\
5 5^
6 G
"
51- 6
5 G
5" 54
5 G
5 6
6 6
6 6
54 6
54 6
5 0
5 6
54 6-7
54 6-7
51 6
51 6
6" 6
6 6
6 8
6 8
5 6
5 6
5 G
4
5 64

8

G

I*
6
6

6
5
6
6
6

5=1-6
6
6
6
6
6
52

5
6
5

4ft-1! 4ft

41 4 f t
41 44

6

0.4

5 54
6 6 6 G 6'
5 51 54 51 5j
6

H 4ft 4ft

5l
54
6
51
G
5*
52

77. L. C.

6

Secured by
Secured by Liberty
warehouse bonds and
receipts, certificates
of indebtetc.
edness.

f

?
6
5
5
G

3 to 6

?

6
6
6

54
5
6

6J
DURING 30-DAY P E R I O D ENDING F E B . 15,1919.
5
51 j
5 51-54i
5
6 "\
5
G r
5
51 i
54 6
5 5:1
52 52

?

6
6
6
6
6
5
5
6
5

6
6
6
6
6

Cattle
loans.

months.
II. L. C.

6 6
52-6

4ft 4ft 4%
5 4§ 42

54 54
6 6 6 5 6 I..!...!...!.
51 6 64 54 6
51 54 7 6 6

G
7

3 months.

77. L. 0.

6 6
6 6

16
7
5-6-6
6
6 •' 4$
6
6 i 44
6 6 i
6 7

Demand.

4ft 41 4ft

41 4ft 4^
4ft 4ft 4-1

a Rates for demand paper secured by prime bankers' acceptances, high 6, low 4i, customary 41-5.




Unindorscd.

Collateral loans—stock exchange or
other current.

6

6

6

6 0

6
8
7
64

6
6
7
o\

G
6
7
6

6 51
6 6-7
6 G
6 8
8 8

5 4i 41
6 4 41-12
0 41 4-1
6 41
6 4\ 6
5 41- 41
6 4i 5
52 41 5
G 41 6
8 41
6 66
6 4-1 5
6 41 5
6 41 6
6 415|
6 415
6 4i 5
54 5 5
6 41 6
7 5 6
6 4* 6
8 6
7
41 41
4i 61
8 41 6
7 6G

6 Rates for demand paper secured by prime bankers' acceptances, high 54, low 4], customary 4 A-4I-

MARCH 1, 1919.

FEDERAL RESERVE

267

BULLETIN.

PHYSICAL VOLUME OF TRADE.

j January issue contains a description of the
i methods employed in the compilation of the
In continuation of tables in the February \ data and the construction of the accompanyFEDEEAL RESERVE BULLETIN there are pre- i ing index numbers. Additional material will
sented in the following tables certain data! be presented from time to time as reliable
relative to the physical volume of trade. The ! figures are obtained.
Livestock movements.
[Bureau of Markets.]
Shipments.

Receipts.
Cattle and
calves, 60
markets.

Hogs, 60
markets.

Sheep, 60 PTorses and: Total, all
mules, 44 \ kinds.
markets.
markets. ;

Head.

January

, 1,694,490

Head.
4,341,474

Head.
1,287,695

:

: 2,110,835
i 2,009,744
2,799,913
: 2,832,022
i 2,f>25,381
I 2,132,491

3,113,281
2,476,190
2,386,475
3,421,641
4,605,158
5,569,356 !

1,585,735
2,129,325
3,303,855 !
3.234,026 i
2,535,115 i
1,640,365

51,393
80,122
124,201
146,072
135,344
72,471

|
j 2, 111, 704

5,861,685

1,567,613 j

110,411

1GI8.

i

1919.
January

|
:
!
•
;

6,861,244
6,695,381
8,61-1,544
9,633,761
9,900,998
9,414,683

Horses and
mules, 44
markets.

Hogs, 54
markets.

Sheep, 54
markets.

Head.
I Head.
555,520 ! 1,260,724

Head.
524,457

665,800 i
349,301
850,363 !
849,618
1,219,333 •
786,917
1,300,084 '\
896,258
1,232,771 ! 1,216,860
785,770 : 1,429,251

Head. \ Head.
157,504
7,481,163 j

JulT
August
September
October
November
December

Cattle and
calves, 54
markets.

9,651,413

761,168

Total, all
kinds.

151,468

Head.
2,492,169

734,539
1,198,691
2,059,990
2,069,057
1,446,523
716,100 j

45,549
76,653
114,023
140,845
131,308
71,243

2,395,189
2,975,325
4,180,263
4,406,244
4,027,462
3,002,364

608,016

106,459

3,022,518

1,546,875 '.

Head.

Receipts and shipments of live stock at IS western markets.
(Chicago. Kansas City, Oklahoma City, Omaha, St. Louis, St. Joseph, St. Paul, Sioux City, Cincinnati,^Cleveland, Denver, Fort Worth, Indianapolis,
Louisville, Wichita.]
[Monthly average, 1911-1913=100.]
RECEIPTS.
Cattle and calves.
Head.
1918.

| Relative.

Horses and mules.
Head.

Relative, i

Head.

Relative.

Head.

I Relative.

Head.

• Relative.

January

1,317,368

131

3,333,591

152 '.

190

5,684,898

123

July
August
September
October
November
December

1,697,193
1,588,553
2,249,017
2,267,534
2,053,359
1,706,945

168
158
223
225
204
169

2,530,414
1,970,086
1,775,842
2,570,525
3,431,782
4,197,313

115 | 1,141,488
1,424,677
90
81 2,408,609
117 2,357,524
1.677,537
156
191 1,114.761

84
104
176
173
123
82

36,782
54,271
82,656
83,574
64,482
36,153

118
180
182
140
79

5,405,877
5,037,587
6,516,124 I
7,279,157
7,227,160
7,055,172

117
109
141
158
156
156

1,656,046 i

161 j 4,603,335

209 i 1,079,377

79

56,631

123

7,395,419

160

January

1919.

87,444 |

Total, all kinds.

946,495

SHIPMENTS.
1918

November
December
January .




1919.
... -

99

755,282

156

316,304

63

85,528

208

1,558,978

109

495,211
652,440
932,131
994,943
921,831
588,425

July
August
September

401,864

122

137

149
265
294
179

127
182
206
155

163

89

31,379
51,923
74,473
84,393
63,589
37,072

76

145

483,151
751,886
1,426,120
1,479,774
903,283
445,987

96

160
229
245
227

662,728
599,577
488,298
486,460
659.432
787,461

90

1,672,469
2,055,827
2,921,022
3,045,570
2,548,135
1,858,945

116
143
197
212
177
129

589,362

145

988,035

204

357,386

71

56,282

138

1,991,065

139

124
101
100
136

288

FEDERAL RESERVE BULLETIN.

MARCH 1,1919.

Grain and flour.
[U. S. Food Administration.]
GRAIN MOVEMENT.
[In thousands of bushels; i. e., 000 omitted.]
'Wheat.

Corn.

Receipts, j Shipments.

June
July
August
September.
October
November..
December..
January.

1918.

Stocks at
close of
month.

Receipts.

Shipments.

Oats.
Stocks at
close of
month.

i Stocks at
Shipments.! close of
month

196,0(50
287,652
286,200
241,260
155,665
178,916

12,415
81,422
163,027
246,690
286,169
254,474
253,767

59,466
48,131
62,137
59,437
47,024
59,237

54,792
42,999
46,453
47.501
41,886
50,312

37,794
31,919
25,559
28,522
25,727
21,646
23,427

90,006
177,324
126,138
110,620
86,871
80,199

87,893
124,597
102,510
107,693
95,008
81,220

39,097
37,923
86,030
104,739
103,943
88,300
83,363

129,998

1919.

94,823
160,162
150,636
150,077
138,438
127,612
80,495

245,683

98,648

79,935

30,448

102,887

89,613

85,811

Barley.

Receipts.

Rye.

Shipments.

1918.

Stocks at
close of
month.

Total grains.
Stocks at
close of
month.

Receipts.

Receipts.

; Stocks at
Shipments.; close of
: month.

22,697 i
23,255]

7,077
9,923
15,295
19,843
21,153
22,287

10,606 |
16,984 !
27,174 |
37,782 I
40,670 i
39,991 i
40,320

3,474
8,422
16,092
20,667
17,521
15,721

2,024
4,449
7,409
15,047 j
13,552
8,721

2,181
2,912
6,128
12,854
17,309
19,199
25,779

363,291
542,869
517.569
455; 873
329,778
357,328

342,130
322,303
340,161
310,037
290,152

171,160
307,918
430,587
473,818
423,610
426,656

27,687 j

27,130

40,073 I

16,686

10,201

30,031

375,906

287,374

432,046-

14,285
21,340
27,002

January.

1919.

WHEAT FLOUR PRODUCTION.
[In thousands of barrels; i. e.. 000 omitted.)

Production.

June
July
August. . .
September

1918.
6,780
10,391
11,335

i
j Production.

!
Stocks at
mills at close
of month.

1,109
1,606
2,386
3,064

October
November
December .
Janua>rv, 1919

i
i
!
i:
=

1918.

Stocks at
mills at close
of month.

3,422
3,387
3,260
3,341

11,752
11,175
11 759
12.994

i
California shipments of citrusand deciduous fruits.
Oranges,

Lemons.

Total citrus fruits.

Total
deciduous
fruits.

Carloads.

January
July
August..
September
October
November
December

Relative.

Carloads.

Relative.

Carloads.

Relative.

1,409
914
767
549
485
1,125
3,565

58
37
31
22
20
46
146

237
561
732
275
639
676
722

59
139
181
68
158
167
178

1,646
1,475
1,499
824
1,124
1,801
4,287

58
52
53
29
39
63
150

3,758
9,126
5,879
7,143
ls044
267

3,130

128

531

131

3,651

128

109

1918.

Carloads.

1919.
January




269

FEDERAL RESERVE BULLETIN,

MARCH 1,1919.

Sugar.
[Data of International Sugar Committee for ports of Boston, New York, Philadelphia, Savannah, New Orleans, Galveston, San Francisco.l
[Tons of 2,240 pounds.]

July
August
September
October
November

1918.

Raw stocks
at close of
month.

Meltings.

Receipts,

320,908
263,383
210.745
207; 566

Receipts.

1918.
December...

Raw stocks
at close of
month.

Meltings.

135,061
100,392
56,978
77,233

January.,

138,141
92,785

1919.

172,528
123,091

50,989
13,774

243,806

288,449
218,690
176,887
242,912

197,145

66,189

[Data for ports of New York, Boston, Philadelphia.]
[Weekly Statistical Sugar Trade Journal.]
[Tons of 2,240 pounds. Monthly average 1911-1913=100.]
Receipts.

Tons.
1918.
January

Relative.

123,080

July
August
September.
October

186,225 \
159,252 !
145,555

Raw stocks at
close of month.

Meltings.
Relative.

Tons.

67

101
87
79

Relative.

Tons.

39,494

90,000
221,000
175,000
139,000

120
95
76

Receipts.

23

55,322
39,375
48,869

32
23
27

Relative.

Tons.
1918
November
December.

151,703 I
139,343 i
58,751 |

1919.
January ...

Raw stocks at
close of month.

Meltings.
Relative.

Tons.

82
76
32

Tons.

156.000
139!000
92,000

Relative.

42,522
43,112
11,170

25
25
7

36,544 I

21

!

172,054 !

93 | 147,000

Lumber.
[From reports of manufacturers' associations.]
[M feet.]
Southern pine.
No. Produc- Shipof
tion.
ments.
mills.

Western pine.
No.
Producof
tion.
mills.

1918.
January

188 381,705 393,997

July
August
September
October
November
December

201
202
196
202
194
204

412,002
391,648
346,069
321,214
312,126
310,068

1919
January

200

330,137 325,241 21.49

453,786
437,776
350,628
353,266
353,810
322,831

24,46

42,45
44,47
45
42,47
38,46
27,46

64,999

Douglas fir.

Eastern white pine.

North Carolina pine.

No. Produc- ShipNo. ProducShipShipoi
of
of Produc-1j ments.
tion.
ments. mills. tion.
ments.
miUs. tion.
mills,

Ship-

ments

93,386

127 336,200 304,600
269,100
292,200
316,000
356,487
259,396
211,664

26

34,762

38,666

14,341

11.913

266,300
26
275,000
26
248,000
26
324,080 27,21
239,493
16
209,999
11

86,658
95,942
72,937
32,787
23,529
799

59,412
51,327
38,711
26,152
23,828
14,176

31,517
24,118
31,908
27,912
32,596
26,728

34,815
34,377
34,963
36,478
36,012
21,570

13

147,533 112,915 123
151,156 109,402 130
130,029 80,859 108
121,850 79,701 j 115
90,078 74,103 121
63,315 63,823 121

7,565

15,172

40 I 28,629

23,869

!

40,, 354

68,910 I

R E C E I P T S AND S H I P M E N T S OF LUMBER AT CHICAGO.
[Chicago Board of Trade.]
[Monthly average 1911-1913=100.]
Shipments.

Receipts.
j M feet.
1918.
January
July
August
September
October




|
|
I
!
|
j

122,976
243,598
208,963
171,515

Relative.

Mfeet.

Recepits.

Relative.

58

58,362

76

115
99
81

98,145
78,707
68,133

128
103

M feet.

November
December
January

1918.

1919.

Shipments.

Relative.

M feet.

Relative.

130,503
142,230
163,908

62
67
77

70,590
72,723
60,831

92
95
79

134,604

63

47,922

62

270

FEDEEAL RESERVE BULLETIN.

MARCH 1,1919.

Coal and coike.
[Bituminous coal and coke, U. S. Geological Survey; anthracite coal, Anthracite Bureau of Information,]
[Monthly average 1911-1913=100.]
|
j Bituminous coal, estij mated monthly pro- Anthracite coal, ship-1
ments over 9 roads.
I duction.
Short tons.

January.

1918.

July
August
September
October
November
December
January

By-product.

Beehive.

Total.

Relative. Long tons. Relative. Short tons, Relative. Short tons. Relative. Short tons. Relative.

1,649,819

187

3,892,181

114

100

2,300,673
2,387,675
2,410,798
2,563,183
2,523,746
2,562,048

261
271
274
291
287
291

5,114,583
5,044,747
4,981,036
5,175,068
4,862,943
4,817,344

146
144
143
148
139
138

92

2,441,433

277

4,843,000

139

42,607,206

115

5,638,383

100

2,242,362

55,587,312
55,732,092
51,757,334
52,885,813
44,386,987
40,634,525

150
150
140
143
120
110

7,084,775
7,180,923
6,234,395
6,286,366
5,276,659
5,736,260

126
128
111
112
94
102

2,813,910
2,657,072
2,570,238
2,611,885
2,339,197
2,255,296

108
102

41,484,000

i
!
i
I

1919.

Coke, estimated monthly production.

112

5,934,241

105

2,401,567

Movement of crude petroleum {east of Rocky Mountains).
[U. S. Geological Survey.]
[Barrels of 42 gallons each.]
Stocks at
end of
month.

Marketed.

Barrels.

January
July
August
September
October

1918.

Relative.

Barrels.

Barrels.

18,800,500

160

118,836,090

21,617,464
20,496,991
20,384,523

184
174
173

110,950,501
108,768,635
104,746,889

Stocks at
end of
month.

Marketed.

November
December

1918.

January

Relative.

Barrels.

21,495,283
20,783,899
19,637,286

102,669,518
99,419,237
96,318,452

21,527,000

1919.

183
177
167
183

97,258,000

Total output of oil refineries in United States.
[Bureau of Mines.]
Crude oil run
(barrels).

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

1918.

Gasoline
(gallons).

Kerosene
(gallons).

Gas and fuel Lubricating
(gallons).
(gallons).

I
23,842,587
23,386,676
26,239,662
28,201,544
28,510,698
28,140,479
29,170,718
28,534,275
28,390,431
29,237,767
27,411,636
26,958,157

242,632,044
234,324,619
269,627,968
293,396,162
319,391,202
315,023,445
332,022,095
330,335,046
314,595,959
314,251,318
312,388,640
291.744,465

119,358.184
121,218,320
151,228,007
153,703,682
160,590,760
151,840,252
156,828,826
149,678,850
164,963,798
164,928,640
169,278,105
161,742,713

547,866,24S
510,165,397
587,985,804
578,255,341
631,586,209
628,842,033
658,439,682
671,113,871
653,085/050
661,780,441
604,403,494
587,873,987

56,623.425
58,300; 914
69,308,351
71,022,204
79,589,735
74,420,996
79,303,107
72,892,879
70,593,079
72,244,633
72,178,602
64,087,842

12,324,191
11,633,411
13,122,241
12,600,062
11,824,633
11,956,151
14,026,525
13,946,595
14,462,100
15,438.576
15,222;401
15,749,771

469,277,166
518,794,609.
526,382,386
509,197,134
460,637,479
418,440,353
349,928,604
285,446,538
269,772,723
250,328,369
270,072,011
297,326,983

436,254,045
411,150,157
356,530,540
393,527,476
343,311,945
426,285,676
432,807,129
424,281,481
436,628,907
419,409,944
397,804,012
380,117,829

547,450,775
502,046,087
483,447,727
471,644,479
515,020,224
550,704,759
519.012,839
569,016,413
583,407,769
596,116,351
583,777,918
659,001,357

141,907,918
150,259,653
146,572,398
144,383,212
161,009,729
158,316,257
136,460,207
137,496,986
147,425,556
135,196,542
132,923,478
138,853)574

Stocks at the close of month.
Jan. 31..
Feb. 28..
Mar. 31..
Apr. 30..
May 31..
June 30..
July 31..
Aug. 31..
Sept. 30.
Oct. 31..
Nov. 30..
Dec. 3 1 . .




271

FEDERAL RESERVE BULLETIN.

MARCH 1,1919.

Iron and steel.
[Pig iron production, Iron Age; steel ingot production, American Iron and Steel Institute.]
[Monthly average, 1911-1913=100; iron ore, monthly average, May-Nov., 1911-1913=100.]
Pig iron production.

Gross tons.

2,411,768

104

2,203,845

92

9,477,853

180

3,420,988 [
3,389,585 i
3,418,270 i
3,486,941 |
3,354,074 |
3,433,617 j

148
146
148
151
145
148

3,113,635 j
3,083,680 I
3,197,658 i
3,352,196
3,060,154
2,992,291

130
129
134
140
128
125

8,883,801
8,759,042
8,297,905
8,353,293
8,124,663
7,379,152

169
166
157
158
154
140

302,260 !
940,168 i

1918.

October
November
December

j
:

143
136

3,082,427
2,688,011

129 |
6,684,263
120 '.
.

127

1919.

January....
February.

Unfilled orders U. S.
Steel Corporation at
close of month.

Relative.

Gross tons.

January.
July
August.
September

Steel ingot production.

!

Relative.

Gross tons.

Relative.

Non/errous metals.
[Tin, Department of Commerce; spelter, United States Geological Survey.]
[Monthly average 1911-1913=100.]
Imports of pig tin.

Spelter.

Imports of pig tin.

Spelter.

Production.
Pounds.

Relative.
Short
tons.

Production.

Stocks at
close of
Relative. month.

1918.
January

12,672,727

138

46,223

171

15,567,667
16,317,437
10,630,666
9,885,984

171
180
117
109

46,467
45,811
43,492
45,631

172
170
161
169

Relative.
Short
tons.

58,354

July
August
September
October

Pounds.

42,480
43,477
41,318
30,608

1918.
November
December

Stocks at
close of
Relative. month.

10,734,179
5,887,063

118
68

43,555
46,903

161
174

31,874
34,765

8,461,444

93

49,215

182

46,073

1919.
January, 1919....

NOTE.—Figures of spelter production for January partly estimated.

Textiles.
[Silk, Department of Commerce; cotton, Bureau of the Census; wool, Bureau of Markets; idle machinery, Jan.-Sept., 1918, inclusive, National Association of Wool Manufacturers.]
[Cotton, monthly average crop years 1912-1914=100; silk, monthly average 1911-1913=100.]

Cotton consumption.

Bales.

Percentage of idle woolen machinery on first of month
to total reported.
Imports of raw silk.

Cotton
spindles
active
during
month.

Wool consumption
(pounds).

Wider
than SOinch reed
space.

Relative.

Spinning spindles.

Looms.

Under Sets of Combs.!
| 50-inch cards.
Woolen. Worsted.
j reed
I space.

1918.
January

523,917

117

|
33,552,732 ! 53,827,887

9.6

12.1

6.1

8.1

July
August
September
October
November
December

541,792
534,914
490,779
.440,833
457,376
472,941

120
119
109
98
102
105

33,674.896
33,646,811
33,524,275
32,760,623
33,121,507
33,652,612

|
|
|
!
!
i

50,951.651
51,516,457
47,648.413
48,6921509
38,282,723
32,355,081

10.4
12.2
13.8
18.3
21.1 i
22.5 i

10.2
14.3
15.1
24.3
26.8
24. 9

5.9
6.0
7.8
9.3
11.1
13.8

10.5 j
10.2
13.2
12.5
23.8
17.8

1919.
January
February

556,721

124

33,856,472 j

32,573,970

40.3 |
52.3 !

32. 6
41.5 |

32. 2
38.7

30.7 |
39.8 j

6.2

Pounds.

Relative.

14.7

2,470,187 |

121

6.5
6.6
8.3
8.8
11.9
16.1

13.2
15.3
20.2
18.8
30.1
27.4

1,997,314 !
3,813,595
3,973,754
2,814,270
2,336,345
2,680,863

186
194
138
114
131

36.5
41.1

37. 5 i 1,461,837 I
48.6 |

71

NOTE.—Figures of idle wool machinery for Nov. 1 and Dec. 1 are not entirely comparable with previous figures, due to fact that later figures are
for number of machines running on single shift, while earlier iigures count as two a machine running double time. The effect is, however, small.




272

FEDERAL RESERVE BULLETIN.

MARCH 1,1919.

Production of wood pulp and paper.
[Federal Trade Commission.]
[Net tons.)
Wood
pulp.
1918.
July
August
September..
October
November..

News
print.

Book.

Paper
board.

Wrapping.

Fine.

262,377
246,741
237,624
270,849 i

103,348
113,826
99,528
88,155
97; 693

69,458
76,439
66,581
60,743
67,262

177,931 70,526
192,810 71,249
168,384 61,390
143,373 56,903
152,321 61,681

34,609
36,910
37,833
28,533
33,429

Wood
pulp.

News
print.

Book.

Paper
board.

Wrapping.

Fine.

1918.
December..

273,973

107,129

64,501

134,103

51,947

29,975

1919.
January

283,270

116,289

73,809

142,764 52,226

29,407

Tax-paid manufactured tobacco products in the United States (excluding Porto Rico and Philippine Islands).
[Commissioner 01 Internal Revenue.]
Cigarettes.

Cigars.
Large.

Small.

Small.

Cigars.

Chewing
and smoking tobacco.

Large.

Cigarettes.
Small.

Small.

Chewing
and smofciag tobacco.

1918
January

Number.
532,833,941

Number.
69,439,836

Number
2,447,265,488

Pounds.
30,109,316

3,796,878,822
3,442,446,234
3,403,205,736
3,027,300,975

36,607,578
40,764,853
37,893,818
39,440,893

Number.
63,177,200
59,139,250

634,609,533
624,491,239
585,400,449
594,764,527

Number.
537,794,904
527,586,098

Number.
2,986,775,643
2,788,379,210

July
August
September
October

79,237,849
60,880,910
60,556,000
63,111,160

1918.
November
December

Pounds.
32,618,009
25,276,695

1919.
January

518,706,482

72,458,974

3,079,212,253

29,308,616

Output of locomotives and cars.
[Locomotives, United States Railroad Administration; cars, Railway Car Manufacturers' Association.]
Output of cars.

Locomotives.

Locomotives.

Domestic
shipped.

July
August
September.
October

Domestic.

Number.

1918.
January.

Foreign
completed.
Number.

Number. Number. Number.
6,464
2,183
4,281

214 !

267 I
295 !

77|
213 !
313 I

3,312
2,4.37
2,660
4,555

Foreign.

4,410
4,847
3,564
2,681

Domestic
shipped.

Total.

7,722
7,284
6,230
7,236

Output of cars.

Foreign
completed.

Domestic.

Foreign.

Total.

Number. Number. Number. Number. Number.
6,743
2,330
224
252
9,093
7,876
3,402
281
177
11,278

1918.
November.
December..
1919.
January

282

84

8,172

3,635

11,807

Vessels built in United States, including those for foreign nations, and officially numbered by the Bureau of Navigation.
[Monthly average 1911-1913=100.]
Gross
Number. tonnage.

January
July
August
September
October




Gross
Number. tonnage.

Relative.

1918.

1918.

57

64,795

268

193
177
170
202

229,931
295,849
308,470
357,532

951
1,224
1,276
1,479

November
December
January
February

Relative.

171
153

357,660
283,359

1,480
1,173

132
135

264,346
271,430

1,094
1,203

1919.

273

FEDERAL RESERVE BULLETIN.

MARCH 1,1919.

Tonnage of vessels cleared in the foreign trade.
4

[Department of Commerce.]
[Monthly average 1911-1913=100.]

Net tonnage.

American. Foreign.

" American.j Foreign.
l

Total.

total.

1918.
January

801,351

July
August
September
October

2,093,310
2,332,577
2,009,194
1,875,947

2,631,274

68

33.9

134

2,941,171 5,034,481
2,808,466 5,141,043
2,290,872 4,300,056
2183383 4,039,330
2,163,383 ! 4039330

129
132
111
104

41.6
45.4
46.7
46.4

1918.
November
December

164
179
185
184

1919.
January

1,739,823

Percentage
of "

Net tonnage.

. Per!centage
i of
Rela-lj
Ameri- tive. jj

! 1,770,
1,141,319

1,991,725
2,053,517

AmeriRela- can to tive.
tive. total.

3,762,060
3,194,836

1,166,391 j 1,898,123 3,062,514

47.0
35.7

78

186
141

38.1

151

Net ton-miles, revenue and nonrevenue.
[United States Railroad Admluistratio n.]
January.
July.
August.
September




1918.

j
!

ii October
27,619,867,000 i! November.
II December..
38,761,291,000 ]"
38,469,847,000
38,592". 137,000 ! January .

39,548,532,000
35,533,026,000
33,659,507,000
1919.

30,383,169,000

274

FEDERAL RESERVE BULLETIN.

MARCH 1,1919.

GOLD SETTLEMENT FUND.
Government loan operations, including the
placing of six issues of Treasury certificates
Clearing and transfer operations through the
gold settlement fund for the 13 weeks ending totaling about 3,800 millions and the transfer
February 20, 1919, totaled $15,305,209,000, of the larger portion of the funds raised to
averaging SI J77,324,000 per week, as against New York City, account largely for the unan average of $1,139,593,000 per week for usually large volume of the transactions.
Net deposits of gold in the banks' fund
the immediately preceding 9 weeks. The
aggregated $126,838,000, of which $111,198,000
New York bank reports a loss through settlement of 51,473,882,000 and a gain through was transferred to the agents' fund, resulting
transfers of $1,409,847,000. As the result of in a net increase in the banks' fund of
these operations the bank shows a decrease of $15,640,000. During the same period the
$64,035,000 of gold, which was, however, more agents' fund shows a gain of $19,902,000.
than fully made up by deposits and transfers On February 20 the total amount standing to
of gold from the Federal Reserve agent's fund, the credit of the Federal 'Reserve Banks and
the bank's balance in the gold fund at the agents was $1,347,459,000, as against
close of the period showing a net gain of $1,311,917,000 on November 21, 1918.
Below are given figures showing opera$15,965,000. Chicago reports a gain through
tions of these funds for the period Novemsettlements and transfers of $38,800,000, while
other important gains are shown for the At- ber 22, 1918, to February 20, 1919, both inclusive :
lanta, St. Louis, and Kansas City banks.
Amounts of clearings and transfers through the gold-settlement fund, by Federal Reserve Banks, from Nov. 22, 1918, to Feb.
20, 1919, both inclusive.
[In thousands of dollars, i. e., 000 omitted.]
Total
clearings.
Settlement o—
f
Nov. 22-29
Nov. 30-Bcc. 5..
Dec. 6-12
Dec. 13-19
Dec. 20--26
Dec. 27-Jan. 2 . .
Jan. 3-9
Jan. 10-18
Jan. 17-23
Jan. 24-30

1,160,334
930,853
1,044,159
1,082,467
944,679
1,014,823
1,155,677
1,020,725
1,139,184
1,009,724

Total
clearing3.

Transfers.

144,741
127,103
287,468
165,1S8
64,651
218,876
192,844
65,942
192,810
80,909

Transfers.

Settlement o—
f
Jan. 31-Feb. 6.
Feb. 7-13
Feb. 14-20

1,010,963
788,963
1,117,683

179,521
61,162
103,760

Total.

13,420,234

1,884,975

7,426,623
45,439,487
24,319,200

913,585
4,812.105
2,835,504

Total for 1919 to date.
Total for 1918
Total for 1917

CLEARINGS AND TRANSFERS.
Total
Total
Total
Total
Total

for
for
for
for
for

1919 to date
1918
1917
1916
1915

Total clearings and transfers from May 20, 1915, to Feb. 20, 1919




8,340,208
50,251,592
27 154,704
5! 533,966
1,052,649
92,333,119

275

FEDERAL RESERVE BULLETIN.

MARCH 1, 1919.

Changes in oivnership of gold.
[In thousands of dollars; i. e., 000 omitted.]

i Balance
| to credit
! Nov. 21,
! plus net
Increase.
; deposits of
I gold since
1
that date.

Federal Reserve Bank.
Decrease.

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

679,471
|
j
i
!
!

27,865 ;
133,769 |
,
j
!

38,576 j
167,464 i

!
!
i
j

53,682 !
36,383 '
39,561 ;
26,140 '•
106,883 .

679,471 j

679,471 j

9,272 I.
64,035 !.

458,002

458,002

.

!

Decrease, i Increase,

41,674
42,547
41,193
56,036
19,759
19,331
103,589
28,654
22,488
36,946
11,120
36,665

55,502
25,308
6,762
64,789
6,719
20,152
22,628
9,971
49,961

,
,

Total

Balance
Feb. 20,
1919.

50,946
106,582

22,851 !

i

Total changes from
May 20, 1915, to Feb.
20, 1919.

From Nov. 22, 1918, to Feb. 20, 1919,
both inclusive.

Total to Nov. 21, 1918.

92,152 |

5,549 |

2,511
534

Increase.

13,579

743,506

"30," 376
134,303
20,748
51,145
206,264
73,617
38,719
53,879
27,289
93,587

12,569
38,800
19,935
2,336
14,318
1,149

13,296
92,152 \

743,506

743,506

Gold settlement fund—Summary of transactions from Nov. 22, 1918', to Feb. 20, 1919, both inclusive.
[In thousands of dollars; i. e., C O omitted.l
O
Aggre-

Federal Reserve
Bank.

Boston
New York
Philadelphia
Cleveland
Richmond
\tlanta
Chicago
St. Louis..
Minneapolis
Kansas ~Citv
Dallas..
San Francisco

Total

Aggro-

gate
gate
Balance
with- deposits
last
drawals
and
Gold
Gold
state- withand
ment drawals. deposits. trans- transfers
Nov. 21,
1918.

24,236

from
agent's
fund.

14,351
40.000
9; 380
22,923
7,366
8,807
24,154
6,246
6,708
2,199
3,193
5,747

20,004
26,000
47,460
43,000
14,011
12,970
196,040
37,883
10,000
7,000
468
30,000

36,256
106,000
53,414
52,923
25,366
13,307
94,635
11,246
13,508
5,199
8,193
40,429

177,454
45
58,000
338,100
45,000
81,096
497,801
114,270
276,399
115,009
49,801
132,000

98,552
1,409,892
89,000
2,687
18,000
83,075
61,302
681
1,786

151,074

444,836

460,476

1,884,975

1,884,975

Debit.

Total
debits.

Net
debits.

fers to
agent's
fund.

4
34,694
26,582
32,728
500
45,579
18,000
13,953
6,425
370
166,194
33,356 "*4,"883*
16,644
24,429
2,246
468*
39,532
442,363

Settlements from Nov. 22, 1918, to Feb. 20,
1919, both inclusive.

Transfers.

Credit.

1,473,882
28,489

106,000
14,000

55,050

Total
credits.

1,179,160 1,248,790
4,899,332 3,425,450
1,500,753 1,472,264
935,185 1,271,132
754,382
775,833
438,540
449,130
1,481,056 1,956,355
782,056
915,580
204,415
481,364
504,242
693,569
341,119
286;069
339,994
444,698

1,557,421 13,420,234 |l3,420,234

Net
credits.

Balance
in fund
at close
of business
Feb. 20,
1919.

104,704

41,674
42,547
41,193
56,036
19,759
19,331
103,589
26,654
22,488
36,946
11.120
36^ 665

1,557,421

458,002

69,630
335,947
21,451
10,590
475,299
133,524
276,949
129,327

Federal reserve agents1 fund—Summary of transactions from Nov. 22,1918, to Feb. 20,1919, both inclusive.
[In thousands of dollars; i. 0., 000 omitted.]

Federal reserve agent at—

Balance
last
statement, Gold withdrawals.
Nov. 21,
1918.

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




52,000
110,000
66,963
100,000
58,000
35,170
198,386
43,631
41,800
45,360
10,684 j

Gold
deposits.

10,095

i

Withdrawals for
transfers
i to bank.

! Deposits
i through Total with-1 Total
j transfers
drawals. 1 deposits.
! from bank.

108,561 I

I

6,000
8,000
33,000
5,200
6', 000 1
5,000 1
1,000 i
4,000 I

21,905
66,000
44,034
30,000
18,000
4,500
70,481
5,000
6,800
3,000
5,000
34,682

869,555 i

91,295 j

309,402 I

13,000

i
j
:

!
!
I
'

20,000
26,000
46,960
25,000
14,000
12,600
196,040
33,000
10,000
7,000

"36," 666'
420,600

32,000
66,000
57,034
30,000 !
24,000 !
12,500 i
103,481 !
10,200 i
12,800 '
8,000 !
6,000 !
38,682 I
400,697

20,000
26,000
46,960 ]
25,000 !
14,000
12,600
196,040
33,000
10,000
7,000

Balance at
close of
business,
Feb. 20,
1919.

""3*6," 666'

40,000
70,000
56,889
95,000
48,000
36,270
290,944
60,431
39,000
44,360
4,68497,879

420,600

889,457

276

FEDEEAL EESEBVE BULLETIN.

M A R C H 1,191JK

DISCOUNT OPERATIONS DURING EACH
During the month of November the Treasury
MONTH IN 1918.
did not issue any certificates, while a 20 per
The following table and accompanying dia- cent installment on the fourth Liberty loan was
gram show the monthly changes in the volume paid in during the later part of the month. As
of bills discounted by all the Federal Reserve a result, discounts of war paper and total
Banks and by the Federal Reserve Bank of discounts for the month show a decided decline.
New York. Similar data are shown for the Total bills and war 'paper discounted during each month in
volume of discounted war paper. These data 1918 by all Federal Reserve Banks and by the New York
are supplementary to the information presented Federal Reserve Bank.
[In thousands of dollars; i. e., 000 omicled.]
on page 65 of the January BULLETIN, where
figures of weekly holdings of discounted war
Per cent Gf
paper and other bills are given.
Total war
Beginning with, the month of April, the
paper discounted.
serve "Bank of ! s £ n ' e r v ^ .,_
month preceding the flotation of the third war
TSJOM- YrwL'
I i\CWJCOrKi.O
loan, there has been an almost continuous ini\ov> IOIK. ! t o t a l w a r p a p C r
| discounted.
crease in total discount operations, the only
I
392,031
192,373 |
4P.1
break occurring during the month of November. !I January
February
399,056
155,490 I
39. G
March
307,(521
167.777 i
54.5
Operations for December were almost three II April
1,811,420
1,367,204- i
75.5
2,517,027
1,998,827 I
79.4
times as large as in April. Of the total volume i June
2,620,737
2,084; 878 i
79.6
2,409,401
1,591,817 !
64.5
of discounts for the year the New York bank July
3,127,430
2,040,745
August
do. 5
4,079, (371
2,C52.423
65.0
reports 61.7 per cent, this share being as high | September..
5,308,755
3,493! 4S9
October
C5.8
4,601,33S
2.738,423
I November..
59.5
as 73 per cent for the month of June.
5,759,297
3,761,991
| December..
05.3
About 84 per cent of the year's discounts I
Total.
33,393,784 j
22,254,444 |
is represented by war paper. This share on the
Per cent oi"
whole shows a perceptible increase toward
Bills discount- bills discounted by tli o
the end of the year and exceeds 90 per cent
ed by
•; Total bills dis~ Federal the
Federal ReReserve Bank of
i
counted.
for December. About two-thirds of the total
serve Bank of New York to
New York.
total bills disvolume of war paper discounted during the year
counted.
is reported by the New York bank. During
May and June—i. e., the period immediately January
868,421
34.4
299,141
762,440
February
j
35.1
207.801
preceding and following the placing of the third March
759,113
I
42.3
321)342
2,178,411
67.1
1,460,681
April
I
war loan—nearly 80 per cent of all the war A'lay
2,993,023
72.9
2,181,143
[
3,137,226
73.0
2,290,685
Jurio
!
3,343,458
paper was discounted by that bank. These July
57.9
l,P35,042
!
3,762,359
61.3
2,306,087
. August
•)
4,085,139
61. 8
2,893,616
percentages are considerably lower for the later j September
i
5,903,963
(32.9
3.713,306
I October
!
•
5,154,592
57.2
2,948', 291.
months of the year, indicating more than pro- November
\
6,215,083
63. G
3,018,403
December
,'
portionate increases in war loan financing on
Total.
24,535,538
39,763,228
61.7
the part of the other Federal Reserve Banks
in connection with the fourth Liberty loan.







:fl^w«s«f^ssasaffiBffis&s^

to

Gave /; W&
; SO£s &iscoaiUied BgJfli X X Jkztlo?.

g

MARCH APRIL MAY JUNE

JULY

AUG. SSPt

OCT. P10V. DEC,

to

278

FEDBKAL KESERVE BULLETIN.

MARCH 1,1919.

DISCOUNT OPERATIONS OF FEDERAL RESERVE BANKS.
For the month of January discount operations of the Federal Reserve Banks aggregated $5,994,382,265, compared with the
record total of $6,215,083,531 for the immediately preceding month and $868,421,473
for January, 1918. Of the total discounts
fox the month under review the share of war
paper, i. e.; member banks' notes and customers' paper secured by United States war
obligations, was 95.3 per cent compared with
92.7 per cent for December, 1918, and about
45 per cent a year before. About 60 per
cent of the total war paper discounted during
January, as against 65 per cent for the month
before, and a slightly smaller percentage of
the month's total discounts are reported by
the New York bank. With the exception
of New York and Cleveland all Federal Reserve
Banks show increases in discount operations
as compared with Decembei of the past year.
Discounts of member banks' notes, secured
by eligible paper, totaled $20,114,004, compared with $51,586,141 for December, 1918,
the Kansas City bank reporting over 60 per
cent of this class of paper. Trade acceptances discounted during the month totaled
$10,903,033, compared with 811,942,831 for
the month immediately preceding. Of the
smaller total, $1,166,725 were bills based
upon transactions in the foreign trade handled
by the Boston and New York banks, while the
remainder were bills based upon transactions
in the domestic trade. '.Che above totals aie
exclusive of §1,939,095 of foreign trade acceptances and $1,241,615 of domestic trade acceptances bought during the month in open market
by the banks at Boston, New York, and Cleveland. In addition, four banks report the discount of $1,577,514 of bankers' acceptances as
against $719,812 the month, before.
About 96 per cent of the total discounts
for the month was composed of 15-day paper,
i. e., bills maturing within 15 days from date




of discount with the Federal Reserve Bank.
Of the remainder more than 75 per cent was
90-day paper, chiefly war-loan paper discounted by the three eastern banks. Discounts of 6-month paper, i. e., agricultural
and live-stock paper maturing after 90 days
but within 6 months from date of discount
with the Federal Reserve Banks, totaled
$11,464,726, of which nearly 82 per cent was
handled by the Kansas City and Dallas banks.
Of the total discounts for the month over
88 per cent was discounted at the 4 per cent
and nearly 10 per cent at the 4J per cent rates.
Accordingly, the average monthly rate of discount for the system works out at 4.15 per
cent, as against 4.18 per cent in December and
4.20 per cent in November of the past year,
notwithstanding an increase in the average
monthly rates of discount shown for the New
York and Philadelphia banks. Average maturities of paper discounted with the banks on
the whole were substantially longer than the
month before, with the resuJt that the calculated average maturity of all the paper discounted shows an increase from 8.54 to 10.34
days.
On the last Friday of the month the Federal
Reserve Banks held a total of $1,601,128,000
of all classes of discounts, as against $1,702,938,000 on the last Friday of the month before,
and $627,662,000 on the corresponding date in
1918. Of the total discounts held, the share
of war paper was 84.8 per cent, as against 82.2
per cent the month before and about 50 per
cent on the corresponding date in January,
1918. For the three eastern and the Cleveland
banks -this share is shown in excess of 90 per
cent, while lor the Kansas City and Dallas
banks the proportion was below 40 per cent.
Discounted trade acceptances on hand totaled
$13,924,000, compared with $15,985,000 about
the end of 1918. Holdings of agricultural
paper totaled $30,921,000, compared with

279

FEDERAL RESERVE BULLETIN.

MARCH 1, 1919.

$29,384,000 on the last Friday in December,
while live-stock paper on hand aggregated
$28,710,000, nearly all of which is reported by
the Kansas City, Dallas, and San Francisco
banks.
During the month the number of members
increased from 8,695 to 8,713. The number of
members discounting during January is given
as 3,316, as against 3,288 the month before, as
may be seen from the following exhibit, showing
the number of member banks at the end of the
last two months, also the number of banks
accommodated during these two months:

Number of member banks in district.

Number of member banks accommodated.

Federal Reserve Bank.
Dec. 31,
1918.

Jan. 31, Decem- January,
1919.
ber, 1918.
1919.

424
723
660
814
565
425
1,333
513
867
994
728
649

Total

424
724
663
817
565
425
1,338
511
868
994
733
650

196
379
342
136
238
251
482
176
161
317
388
222

191
395
351
153
242
245
416
176
168
334
419
226

8,695

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

8,713

3,288

3,316

Total investment operations of each Federal Reserve Bank during the months of January', 1919 and 1918.
! Bills discounted for
members.

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

8370,959,398
3,468,059,283
683,722,748
203,974,133
283,356,053
169,835,236
308,946,073
139,201,035
17,317,075

i SI, 000

162,593,664

$24,383,920
75,582,937
883,390
31,770,316
4,083,668
4,088,494
15,436,290
10,199,890
10,457,484
6,048,056
2,062,000
16,495,261
201,491,706
130,619,509

1,000
1,247,082

Total investment
operations.

United States securities.
: 1-year
United States
31 per cent. 4. per cent. 4-J per cent. ! Treasury certificates of
! notes. indebtedness.

!

i
|

$1,000,000
$1,094,100

Sl/H) ;
7,025 i
7,000 i

1,000,000
13,243,538

14,175 |
!

5520,000

j

1

All city warrants.

Total.

January,
1919."

87,666,000
716,083,000
1,860,000
16,485,000
15,414,000
1,167,000
6,457,000
500,000
8,989,500
2,557,500
725,000
50,543,000

j
.

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




Municipal
warrants.

5,994,382,265
868,255,150

Total, January, 1919.
Total, January, 1918.

Total, January, 1919
Total, January, 1918

Bills bought in
open market.

87,666,000
716,083,000
1,860,000
16,485,000
15,414,000
1,167,000
6,457,000
500,000
8,989,500
2,557,650
732,025
51,550,000

8403,009,318
4,259,725,220
686,466,138
252,229,449
302,853,721
175,091,730
330,839,363
149,900,925
36,764,059
104,945,378
92,871,920
230,638,925

828.447,000
51i;022,000

829,461,175
525,879,638

7,025,336,146

January,
1918.
$34,672,991
786,021,686
51,165,270
133,205,719
138,591,928
22,549,478
218,398,030
39,721,655
7,747,060
44,769,907
12,378,111
36,779,544
1,526,001,379

280

FEDERAL RESERVE BULLETIN.

MARCH 1,1919.

Average amount of earning assets held by each Federal Reserve Bank during January, 1919, earnings from each class of earning assets and annual rates of earnings on basis of January, 1919, returns.
Average balances for the month of the several classes of earning assets.
Discounted
bills.

Purchased
bills.

United States
securities.

8128,211,454
684,720,582
177,059,450
110,101,482
89,084,194
77,734,791
165,739,209
64,624,598 I
32,371,000
66,559,290 |
49.464,836 I
88,984,131

$15,051,933
83,058,817
2,872,847
38,767,687
6,873,218
11,429,893
42,380,675
7,688,127
18,851,000
17,378,628
2,379,419
33,999,542

S9,340,847
76,287,083
11,812,255
15,372,490
7,176,910
6,988,323

1 1,734,655,017
|
611.235,224 |

Boston
New York
Philadelphia
Cleveland
Richmond.
Atlanta
Chicago
St. Louis
Minneapolis
Kansas C i t y . . .
Dallas
San Francisco..

280,731,786
265,590,363

198,123,267
148,256,057

!
i
|
i

Total, January, 1919
Total, January, 1918

Earnings from—
!
Dis! counted
!
bills.

Purchased
bills.

United
States
securities.

I §445,833
! 2,362,449
j
620,820
!
394,917
!
326,210
I
284,938
|
607,981
!
231,759
;
117,566
271,288
195,726
i
342,300

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City.
Dallas.....".
San Francisco
Total, January, 1919
Total, January, 1918

Municipal
warrants.

S53,087
297,704
10,737
140,358
27 675
44,529
155,067
27,725
66,347
63,187
9,023
126,257
1,021,696

380,255
403,826

$8,484

5152,604,234
844,066,482
191,744,552
164,241,659
103,134,322
96,161,491
231,123,513
80,437,351
57,950,000
98,046,566
60,213,747
133,794,637

8,484
1,283,577

2,213,519,554
1,026,365,221

23,003,629

8,124,626
6,728,000
14,108,648
8,369,492
10,810,964

Calculated annual rates of earnings from—

Municipal
warrants.

Total.

SI6,248
144,898
22,274
35,052
12,344
12,651
41,752
15,104
14,357
25,884
16,933
22,758

i 6,201,787
J 2,038,285

Total.

S515,
2,805,
653,
570,
366
342
804,
274,
198,
360,
221,
491,
36
4,349

Dis| Purcounted | chased
bills. I bills.

MuniciUnited
States
pal I Total.
securities. warrants, i

I Per cent. Per cent. Per cent. Per cent. Per cent.
i
4.09
4.15
3.97
2.05
4.06
4.22
3.91
2.24
4.12
4.40
4.01
2.22
4.13
4.29
4.08
2.68
4.33
4.48
4.18
2.25
4.32
4.59
4.19
2.13
5.06
4.32
4.31
4.10
2.14
4.22
4.25
4.02
2.19
4.28
4.14
4.03
2.51
4.80
4.28
4.33
2.16
4.66
4.47
4.34
2.38
4.54
4.37
4.33
2.48

7,603,774 |
3,267,266 j

4.21
3.94

4.29
3.64

2.26
3.27

5.06
3.99

4.04
3.75

Bills discounted for member banks during the month of January, 1919, distributed by classes; also average rates and maturities
of bills discounted by each Federal Reserve Bank.

Federal Reserve
Bank.

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




Member banks' collateral
notes.
Customers' I
paper secured I _
by Govern- \
ment war ; Secured by
Otherwise
obligations.
Government
war obligations. secured.

Bankers'
acceptances.

Trade
acceptances.

All other
discounts.

Total.

Average Average
maturity rate (365
in days. day basis).

£57,552,105
65,434,147
35,788,437
10,787,844
7,063,780
5,488,116
5,651,524
1", 556,204
6,418
315,052
812,410
1,085,136

5302,716,850
3,303.157,768
617j 370,301
183,103,000
260,933,014
135,331,886
276,499.667
128,158; 850
16,478,140
69,949,098
70,948,810
148,384,462

1 $1,470,858 I $320,434 j
2 3,189,254 1,109', 279 i
182,126
''
1,128,430
709,500
721,168
;
702,800
987',686 j
1,095,827
612,710 i
i
625,000 |
558,573
142,950 ;
43,200 j
6,107
12,317,127
830,397
1,814,550 !
410,718
6,000
805.006
4,851

§6,159,151
95,168,835
30,381,884
8,954,859
7,928,591
27,264,948
25,086,345
8,159,458
783,210
12,927,998
16,091,407
11,708,209

8370,959,398
3,468,059,283
683,722,748
203,974,133
283,356,053
169,835,236
308,946,073
139,201,035
17,317,075
96,339,672
90,077,895
162,593,664

17.72
7.20
9.85
13.70
10.79
18.04
16.69
13.93
16.83
24.22
26.62
16.65

Per cent.
4.05
4.07
4.12
4.19
4.28
4.21
4.17
4.17
4.39
4.82
4.65
4,54

192,141,173

5,518,031,646

20,114,004

250,614,895

5,994,382,265

10.34

4.18

1 Includes $1,133,412 In the foreign trade.

10,903,033

1,577,514
2

Includes £33,313 in the foreign trade.

M A R C H 1.f

281

FEDERAL RESERVE BULLETIN.

1918.

Bankers' and trade acceptances in the foreign and domestic trade and finance bills purchased during the month of
1919; also average rates and maturities of total bills purchased by each Federal Reserve Bank.
Bankers' acceptances.
Federal Reserve Bank.

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

In the
domestic
trade.
19,821,
25,763,
44,
12,966,
2,391,
2,851,
14,338,
7,367,
6,616,
2,995,
35,
10,488,

Total

! 95,679,683

In the foreign trade.

r

$14, 095,313
46, 065,628
839,390
18, 255,206
692,500
\: 236,600
l , 097,211
2, 832,206
3, 841,235
052,199
027,000
898,055

1;

Trade acceptances.

; Aver- Average
age
Total bills i matu- rate
purchased. i rity in (per
;
I days, j cent).

Finance
bills.

In the
domestic
trade.

In the foreign trade.

Total.

§23,916,815
71,829,037 81,045,205
883,390
31,221,826
196,410
4,083,668
4.088,494
15; 435,305
10.199,890
10,457,484
6,048,056
2,062,000
16,386,261

§367,105
1,493,695

S367,105
2,538,900

$100,000
1,215,000

78,295

27-1,705

273,785

Total.

5

100,932,543 j 196,612,226

January,

44.84
41.85
39.71
78.14
69.78
73.70
71.12
33.93
63.69
62.27
44.74
67.04

82 4,383,920
75,582,937
883,390
31,770,316
4,083,668
4,088,494
15,436,290
10,199,890
10,457,484
6.048,056
2; 062,000
16,495,261

985

109,000

1,241,615 I 1.939,095 j 3,180,710 j 1,698,770

201,491,706 1 54.82 = 4.28

Discounted bills, including member bank's collateral notes, held by each Federal Reserve Bank on the last Friday in
1919, distributed by classes.
[In thousands of dollars, i. e., 000 omitted.]

January,

Member banks' colCustomers'
lateral notes.
paper
secured by S ecured by
Trade ac- All other
Governceptances. discounts.
Government war ment war Otherwise
obligations. obligations. secured.

Federal Reserve Bank.

Boston

87,968
103,925
24,396
13,296
11,664
5,820
7,894
2,362
3,532
333
1,504
4,064

110
738
1,202
425
22
9,969
1,048
3

1,090,813

13,532

16.7
154,436
24.6

Total.
Per cent
Total, January, 1918.
Per cent
.
*

30,114
487,317
131,956
74.297
58,370
42,548
120,231
42,083
15,679
24,574
16,045
47,599

266,758

New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas C i t y . . .
Dallas
San Francisco.

68.1
159,250
25.4

70,829
11.3

!
!
j
i
i

4.20
4.21
4.26
4.27
4.56
4.56
4.36
4.26
4.23
4.33
4.62
4.34

Total.

600

15,786
2 40,020
14,478
6,043
8,704
18,169
13,975
«7,804
623
7,899
16,378
U7,221

125,856
633,761
171,388
95,679
83,074
71,206
153,865
53,594
21,733
63,536
50,348
77;088

13,924

157,100

1,601,128

17,033
2.7

215,410
34.3

100
627,662
100

1,973
2.341
'385
1,926
1,882
1,702
1,196
735
7
1,177

15

3

Includes SI, 145,544 of bankers' acceptances.
1 Includes §329,337 of bankers' acceptances.
* Includes §9,'lC4 of bankers' acceptances.
Includes $05,555 of bankers' acceptances.
Acceptances purchased, and held by each Federal Reserve Bank on Jan. 31,1919, distributed by classes of accepting
2

institutions.

[In thousands of dollars, i. c , 000 omit tod.]

Federal Reserve Bank.
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
Totals:
Jan. 31,1919..
Dec. 31,1918..
Nov. 30,1918.
Jan. 31,1918..
Feb. 5,1917...




Foreign !
bankbranches Total. ;
and
I agencies.

Non; NonMember member I member
trust
banks.
State
companies, i banks.
16,313
54,198
2,094
36,775
7,614
10,377
30,352
7,510
22,723
13,737
2,845
19,699
224,237
234,323
310,069
240,259
50,361

I

'662"

324

416

"97l"

1.498

5,919

19,301 i.
80,44S !
2,113 ! .
47,548 i
7; 614 f.
10,377 I.
30,421 !.
8,298 i.
23,552 :.
15,079 ;.
2,845 I.
28,087 j .

11,983
10,442
10,703
3,522
972

22,163
19,740
27,871
22,090
13,775

15,119
12,994
19,818
6,947
140

I 275.683 !
j 280,244 J
370,489 !
j 278,374 !.
! 88,759 :.

908 !

472
6,842

"i,"276T

2,561

1,998
69

250 I

538

2.178 i
2;545 !
2,028 i
5,547 .
23,511 !

Trade acceptances.
\
—
—
-j Total.
Totel. !
1,005:

480
2,274
20
96

480
3,279
20

19,781
83,727
2,133
48,510
7,614
10,377
30,421
8,298
23,552
15,079
2,845
28,950

1,871 i
2,536 I
4,016 1

3,739
4.388
5; 019

5,610
6,924
9,035
6,363
4,041

281,293
287,168
379,524
284,737
02,800

282

FEDEKAL BESEKVE BULLETIN.

MAECH 1,1919.

RESOURCES AND LIABILITIES OF FEDERAL RESERVE BANKS.
Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve system at close of business on Fridays, Jan. 31,
to Feb. 14, and on Thursday, Feb. 20.
RESOURCES.
[In thousands of dollars; i. e., 000 omitted.]

Boston.

Gold coin and certificates:
Jan. 31
Feb. 7
Feb. 14
Feb. 20
,
Gold settlement fund, Federal
Reserve Board:
Jan. 31
Feb. 7
Feb. 14
Feb. 20
Gold with foreign agencies:
Jan. 31
I
Feb. 7
Feb. 14
Feb.20
Gold with Federal Reserve
agents:
Jan.31
Feb. 7
Feb. 14
Feb. 20
Gold redemption fund:
Jan.31
Feb. 7
Feb. 14
Feb.20
Total gold reserves:
Jan. 31
Feb. 7
Feb. 14
Feb.20
Legal tender notes, silver, etc.:
Jan. 31
Feb. 7
Feb. 14
Feb.20
Total cash reserves:
Jan. „
31
Feb. 7
—
Feb. -14
Feb.20
Bills discounted:
Secured by Government
war obligations—
Jan. 31
Feb. 7
Feb. 14
Feb.20
All other—
Jan. 31
Feb. 7
Feb. 14
Feb.20
Bills bought in open market:

Jan. 31...../..'

Feb. 7
Feb. 14
Feb.20
United States Government
long-term securities:
Jan. 31
Feb. 7
Feb. 14
Feb.20
United States Government
short-term securities:
Jan. 31
Feb. 7

Feb. 14
Fob. 20
All other earning assets:
Jan. 31
Feb.7
Feb. 14
Feb.20




3,635
3,015
3,436
3,604
45,289
39,792
41,673
41,675

York.

phia.

Cleve- Richland. mond.

Chi- j St.
Minnecago. i Louis. apolis.

Atlanta.

256
194
145
123

14,203
20,966
21,172
21,616

2,232
2,297
2,311
2,319

8,126
8,199
8,252
8,303

22,484
22,655
22,560
22,456

20,765 47,627
78,818 49,579
21,300 44,815
42,547 41,193

65,833
45,596
58,013
55,923

16,848
13,176
20,088
19,758

11,750
13,810
15,949
19,331

89,716
83,845
120,662
103,589

37,950
33,625
29,082
26,654

524
525
525
525

204
204
204
204

175
175
175
175

816
816
816
816

259,612
260,597
261,690
260,805

i
i
!
|

4,292 1 8,274
4,154 ' " " "
4,244
4,206 8,303

Kansas.
City.

San
Dallas. Francisco.

Total.

203
243
162
112

5,872
5,911
5,946
5,956

9,747
12,068
9,550
12,614

338,916
348,605
347,764
350,417

27,454
16,099
22,589

35,159
23,898
31,996
36,946

3,740
3,968
7,993
11,120

20,555
16,844
23,118

422,686
419,050
437,278

233
233
233
233

291
291
291
291

204
204
204
204

321

233
233
233

5,828
5,829
5,829

321

40S
408
408
408

2,011
2,011
2,011
2,011

408
408
408

52,220
52,079
51,343
51,156

260,979
259,121
258,669
257,793

78,632
75,603
72,702
71,497

140,744
132,620
130,996
130,482

54,106
52,231
50,246
49,165

41,187
41,071
41,243
41,398

304,032
302,489
299,327
296,815

64,267
68,667
70,475
69,442

58,174
57,475
55,918
55,318

51,230
49,744
48,797
47,785

22,206
22,058
20,540
20,021

125,553
118,008
117,107
107,111

1,253,330
1,231,166
1,217,363

9,816
12,424
13,495

25,000
25,000
25,000
25,000

7,900
9,532
14,301
15,372

1,553
1,049
2,570
1,769

5.018
6;634
4,694

4,075
4,270
4,378
4,803

24,650
31,241
24,397
26,340

3,186
4,424
3,523
4,347

4,632
3,666
4,108
4,619

3,504
4,888
5,704
6,632

2,179
2,306
2,208
1,728

1,820
2,323
5,866
4,124

91,346
103,533
111,113
112,923

110,461
105,110
109,284
110,338

568,367
625,547
588,670
588,156

i134,823
135,316
132,371
128,593

222,857
200,756
213,276
1210,315

77,328
72,926
79,483
76,140

65,313
67,525
69,997
74,010

441,678
441,046
467,762
450,016

109,928
111,103
107,557
104,882

98,767
85,779
91,144
90,961

4,154
5,056
5,249
5,650

52,930
51,666
51,657
52,307

429
379
299
386

867
1,059
878
857

2,062
1,735
1,396
1,275

2,558
2,464
2,311
2,232

181
189
160
173

330
293
277
266

1,767
1,817
1,822
1,887

420
506
340
186

67,540
67,431
65,971
66,491

114,625
1110,166
114,533
115,988

621,297
677,213
620,327
640,463

Il35,252
135,695
132,670
128,979

1224,466 77,551 66,180 443,740 112,486 98,948
|20:>,819 73,130 68,584 442,781 113,567 85,968
214,627 79,714 70,875 469,158 109,868 91,304
|211,323 76,404 74,867 451,291 107,114 91,134

90,717
79,357
87,227
92,032

35,968
36,264
38,713
40,916

158,416
150,070
156,302
161,021

2,179,646
2,175,614
2,185.318
2, lQi; 532

118,082 i
!l33,374 •
1146,403 i
138,158 I
i
7,774 I
7,844 j
7,318 !
7,831 [|
'

591,242
639,721
731,071
707,364

1156,352
1168,186
i 177,622
1177,360

42,519 15,036
49,226 13,175
51,449 14,291
46,917 12,168

! 1,609
! 2,063
i 1,351
1,008

223
204
231
264

87,593 70,034
84,325 77,286
97,060 81,019
95,522 84,477
8,086
7,282
6,745
7,316

48,368
51,503
58,542
60,197

90,387 34,201 157,996 2,112,106
79,084 34,447 149,564 2,108,183
155,962 2,119,347
86,950
91,766 39,029 160,835 2,125,041

128,125 44,445
128,253 41,737
1131,878 43,025
i.154,870 45,248

19,211
18,110
15,999
17,420

24,907
27,313
33,000
32,324

17,549
20,594
21,393
17,653

51,665
60,745
66,040
65,865

1,357,571
1,451,147
1,603,052
1,596,458

9,149
8,454
7,279
8,355

2,522
2,214
1,937
1,992

38,629
40,795
39,363
37,990

32,799 25,425
32,024 24,498
32,099 22,619
33,265 21,722

243,557
243,254
233,849
221,996

23,552
8,649 28,374
15,268 26,570
17,991 I 31,604

15,079
14,197
12,242
10,864

13,040 22,838 25,740
12,563 19,430 25,749
12,008 17,929 20,812
11,480 15,008 17,952

i 19,781

83,727 i 2,133 48,510 7,614 10,377
15,588 j 64,524 | 2,153 63,235 7,714
9.619
11,213 I 54,927 i 2,274 61,750 7,619
8', 550
12,033 : 41,399 j 2,116 j 61,359 7,085 7,980
j
i
1,394
!
538
1,385
1,083 1,234
1,393
j
538
1,385 i 1,084
1,234
528
1,393
!
538
1,385 | 1,084
1,234
378
1,392
!
538
1,234
1,385 j 1,084
378
|
j
1 9,416
155,853.1 10,800 ! 12,060 | 5,299 6,521
9,416 i 46,503 I 10,780 ! 11,186 j 5,299 6,964
10 416 ! 48,033 : 11,280 : 11,066 i 5,299 6,964
11,416 ! 52,727 ! 11.280 . 11,340 i 5,375 6,964
4
4!
4 I
4 •

30,421
31,458
34,709
33,249
4,510
4,510
4,510
4,510

1,153
1,153
1,154
1,153

17,612
17,612
16,612
16,612

7,068
7,068
7,068
7,568

9,468
9,395
9,300
9,199

5,416
5,482
5,416
5,416

28,956
34,228
37,351
42,440

281,293
282,702
275.068
269)920

3,971
3,970
3,970
3,967

119
119
119
118

2,845
2,963
2,595
1,800

3.468
3,468
3,468
3,468

28,250
28,101
28,095

4,400
4,400
4,399
3,900

22,619
5,398
5,351
5,326

266,532
139,501
141,204
147,123
4
4
4
4

283

FEDERAL EESERVE BULLETIN,

M A B C H 1, 1919.

Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve system at close of business on Fridays, Jan. 81,
to Feb. 14, and on Thursday, Feb. 2G—Continued.
RESOURCES.
[In thousands of dollars; i. e., 000 omitted.]
New
Boston.; York.
Total earning assets:
Jan. ,31
Feb. 7
Fob. 14
Feb. 20

155,591
160,760
175,888
169,976

Bank premises:
J a n . 31
!
800
Feb. 7
!
800
Feb. 14
800
Feb. 20
j
800
Uncollected items and other j
deductions from gross de- !
posits:
;
" Jan.31
! 51,865
Feb. 7
! 45,680
Feb. 14
1 58,671
Feb. 20
i 53,617
5 per cent redemption fund
against Federal Reserve bank
notes:
Jan.31
385
Feb. 7
432
Feb. 14
511
Feb. 20
510
All other resources:
i
Jan. 31
!
367
Feb. 7
!
295
Feb. 14
1
333
Feb. 20
1
363
Total resources:
I
J a n . 31
!323.633
Feb. 7
1324,133
Feb. 14
|350,736
Feb. 20
1341,254

!
Atland, j mond. | lanta.

Philadelphia.

874,735
801,367
880,873
849,799

185,706
195,679
206,852
204,309

2,343
2,368
2,658

97,221
104,096
107,179
109,651

70,113
67,061
73,794
80,315

500
500
500
500

155,188
141,365
199,761
158,814

Chi- ! St. Minnecago. ! Louis. apolis.

Cleve- | Rich- I

78,474
69,144
78,876
70,851

1,886
1,846
1,833
1,851

1157,332
167,112
177,705
1176,621

i

1,225
714
998
735

1,658,852
1,627,053
1.714,400
1,655,851

401,682
402,282
420,471
405,949

291 i 217
290 ! 217
295 ! 217
296
217

2,936
2,936
2,936
2,936

37,662
39,783
43,328
41,830

61,564
63,951
64,456
60,585
221
221
221
221

49,901
53,522
49,975
52,801

22,619
25,305
19,666
18,185

540
540
540
541

78,038
66,967
72,470
66.962

92,899
96,655
98,889
95,462
400
400
400
400

54,872
58,212
53,925
60,333

132,131
128,335
134,829
138,821

55,655
49,236
49,018
52,342

59,519
56,649
44,083
47,922

36,873
30,385
31,598
30,958

533
551
534
525

270
244
228

337
345
364
350

325
952
274
904 I 313
872 : 282

214
304
283
264

633
633
627

313
308
298
310

I 1,032 ! 1,382
400
; 1,329 I
i 1,425 i
499
I

466
420
707
436

1,065 i 487
1,187 j 410
1,110 i 432

132
85
94
90

389
388
41S
417

657
654
748
717

1,026
1,012
9-16
940

170,038
156,350
162,579
162,946

234.939
23O',955
237,536
241,798

121,342
126,703
124)102
120,934

342,117
315,218
329,879
329,909

2,936 ! 3,660
2,940 I 3,660
2,948 I 3,659
2,948 3,712

3,172
3,177
3,104
3,194

4,672
4,677
4,679
4,679

80,913
81,061
81,211
81,406

592
592
592
592

1,224
1,224
1,224
1,224

22,738
22,738
22,738
22,738

5,445
4,977 1,199
5,115 6,469 6,002
10,020 3,756 12,302
9,669 I 14,411 4,284 25,138

64,928
96,809
192,970
205)675

525
550
575
575 |

3,403
2,894
2,948
2,236

| 88,637206,408
88,048 207,582
92,367 208,521
90,531 227,193

Kan- !
sas i Dallas.
City.

1439,018
|421,047
1443,309
1441,504

1236,244
234,835
232,014
234,889

i

1,026 !

j 15,872
| 11,781
i 16,973
11,125

439

49,788
35,044
37,046
28,371

6,767
6,822
6,842
6,809
11,631
9,788
10,658
8,480
5,075,355
4,970,615
5,194,528
! 5,113,192

i

192,710
187,999
196,128
197,357

733,167
722,405
755;099
750,280

1221,613
1221,635
1228,275
; 230,521

11,231

LIABILITIES.
Capital paid In:
!
' Jan. 31
i 6,778
20,754
7,570
Feb. 7
! 6,773
20,923
7,471
7,473
Feb. 14
' 6,773
20,925
7,566
Feb. 20
! 6,773
20,925
Surplus innd:
1,304
Jan. 31
1,535
8,322
1,304
Feb. 7
1,535
8,322
1,304
Feb. 14
1,535
8,322
1,304
Fob. 20
1,535
8,322
Government deposits:
j
6.810
Jan. 31
9,481
3,482
Feb. 7
16,397
20,070 1.4; 820
Feb. 14
27,920
43,132 18,950
Feb. 20
24", 150
44,352 15,323
Due to members—reserve account:
Jan. 31
102,814
708,910 99,120
Feb. 7
95,339
859,132 101,261
Fob. 14
98,880
673,336 98;697
Feb. 20
96,364
635,846 93,287
Deferred availability items:
Jan. 31
".
39,176
113,710 63,512
Feb. 7
37,537
114,269 54,944
Feb. 14
45,084
147,206 65,533
Feb. 20
40,432 I 119,811 61,019
Other deposits, including
forj
eign government credits:
850
Jan. 31
2,635
101,550
643
Feb. 7
1,468
99)481
1,011
Feb.14
1,517
101,583
663
Feb. 20
130
104,470
Total cross deposits:
Jail. 31...".
154,106
927,652 170,292
Feb. 7
150,741
892,952 171,674
Feb. 14
173,401
965,257 184,191
Fnb. 20
161,076
904,479 170.292




9,088
9,090
9,204
9,209

4,060
4,062
4,064
4,084

3,191
3,193
3,196
3,196

11,294
11,295
11,300

3,801
3,801
3,801
3,820

1,776
1,776
1,770
1,776

1,156
1,156
1,156
1,156

775
775
775
775

3,316
3,316
3,316
3,316

801
801
801
801

726
726
726
726

12,444 j
4,586
19,155
15,689

2.925
4', 573
5,121
6,439

3,344 7,519
10.832 5,604
25)892 11,100
29,607 11,610

7,678
1,931
8,023

I
1130,443
|122,25O
j130,188
1128.372

1376
404
7,599
5,005

I
i
i
i

1,211
1,211
1,211
1,211

54,133 48,942 235,575 I 61,529 49,868 i 72,007
53:874 42,136 222,596 I 60)511 47,186 !! 69,038
;517 224,556 59,501 4.8,033 72,094
53,250
53,517 42,859 1220,035 61,461 46,723 \ 70,598

40,707 30,979 j20,588
37,142 30,595 !20,109
35,852 30,648 '20,407
43.801 31,916 24,095

49,600
42.617
57;517
52.774

30,253
31,915
35,573
! 35,251

10,549
7,369
7,626
7,792

|
!
j
'

30,668
32,297
32,026
34,033

40,264 89,527 1,693,132
38,335 78,783 1,590,441
38,105 80,995 1,623,158
37,501 77,349 1,563,912
12.457
15)814
17,752
15,431

29,843
14,613
22,502
13,902

472,042
439,221
517,726
480,257

1,108
226
73
148

4,228
5,093
6,091
6,551

1:20,809
112,551
112,273
114,758

i
807
324
251
725
184,401
164,302
185,446
-'188,587

554
137
76
239

461
325
64
45

88,591 09,615
89,179 82,974
89,101 73,587
92,111 72,004
1 Overdraft.

3,498 i 675 1.948 ! 2,495
2,392 j 1,740 '274 I 448
190 I 346
853
218
125
98
1,130
434
292,017
278,437
308,818
303,546

99.976
99)770
106,392
! 108,750

70,043 110,14.7 55,028 129,043 2,350,911
56,760 106,898 60,844 104,491 2.239,022
63,872 114,486 59.686 121,890 2)446,127
04,309 1119,140 57,304 122,938 2,364,602

284

FEDERAL RESERVE BULLETIN".

MARCH 1,1019.

Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve system at close of business on Fridays, Jan. 31,.
to Feb. 14, end on Thursday, Feb. 20—Continued.
RESOURCES.
[In thousands of dollars: i. e., 000 omitted.]

Boston.

Federal Reserve notes in actual
circulation:
Jan.31
Feb. 7
Feb. 14
Feb. 20
Federal Reserve Bank notes
in circulation—net liability:
Jan. 31
Feb. 7
Feb. 14
Feb. 20
All other liabilities:
Jan. 31
Feb. 7
Feb. 14
Feb. 20
Total liabilities:
Jan. 31
Feb. 7
Feb. 14
Feb. 20

New
York.

Philadelphia.

149,565
152,479
1.55,884
158,190

647,913
650,046
664,613
666,858

209,921
208,865
214,301
213,257

8,280
9,136
9,577
9,989

36,890
36,800
36,524
36,305

3,389
3,469
3,566
3,691
323,633
324,133
350,736
341,254

San
Francisco.

Kansas.
City.

Dallas.

90,528
89,986
89,051
88,812

105.593
104,569
103,457
102,908

55,376
54,832
53,239
52,309

6,363
6,483
6,606
6,720

4,746
4,830
4,872
4,985

12,260
12,452
12,516
12.585

5,888
5,927
6,007
6.051

6,277
6,290
6,293
6,301

120.445
131,315
132.291
133,465

4,278
4,428
4,505
4,629

1,305
1,338
1,393
1,445

1,059
1,108
1,110
1,168

2,068
2,165
2,197
2,242

1,286
1,331
1,38-4
1,424

2,075
2,204
2,278
2,374

733,167
722,405
755,099
750,280

221,613
221,635
228,275
230,521

170,038
156,350
162,579
162,946

234,939
230.955
237,536
241,798

121,342
126,703
124,102
129,934

342,117
315,218
329,879
329,909

40,olS
42,324
43,773
44,733
5,075,355
4,970,615
5,194,528
5,113,192

Cleve- Richland. mond.

Atlanta.

Chicago.

231,153
232,992
233,874
228,815

136,070
133,892
130,958
130,661

111,391
113,065
110,320
113,009

405,026
407,665
409,884
410,057

109,367
109,442
109,282
108,979

10,317
10,537
10,670
10,919

9,933
10,058
10,102
10,144

4,750
4,859
4,965
5,055

6,462
6,678
6,878
6,979

17,299
17,265
17,281
17,432

17,321
18,010
18,759
18,962

2,278
2,431
2,532
2,611

2,667
2,829
2,907
2,973

1,617
1,687
1,770
1,822

1,276
1.314
i:372
1,394

1,658,852
1,627,053
1,714,400
1,655,851

401.682
402,282
420,471
405,949

439,018
421,047
443,309
441,504

236,244
234,835
232,014
234,889

192,710
187,999
193,128
197.357

MinneSt.
Louis. apolis.

Total.

198,826 2,450,729
196,332 2,454,165
193,515 2,468,388
192,393 2,466,248

Maturities of bilU discounted and bought, United States Government short-term, securities, and municipal warrants.
[In thousands of dollars, i. c , 000 omitted.]
W i t h i n 15

Biils discounted:
Jan. 31
Feb. 7
Feb. 14
Feb. 20
Bills bought:
Jan. 31
Feb.7
Feb. 14
Feb. 20
United States short-term securities:
Jan. 31
Feb.7
,
Feb. 14
Feb. 20
Municipal warrants:
Jan. 31
Feb.7
Feb. 14
Feb. 20




1,219,001
1,302,953
1,450,476
1,451,139 |
61,546 I

76,048
82,689
81,985
132.845
6; 339 '
7 869
12,563

16 to 30
days.

31 to 60
days.

95,112

61 to 90
days.

77,373
72,951
57,683
56,820

88,873
87,087
95,961

184,717 •
•
204,S53 "
218,152
191,538 ;

74,984
65,083
63 84.8
66,051

103,623
103,872!
103,967
98,850

Over 90
days.

Total.

41,140 .
37,699 .
24,564
23,034

370

724
130

631
967
130 !

15
7.169
'217
350

24.925
24', 771
23,503
22,996

1,601, 128
1,694, 401
1,836. 901
IJ8I8, 454
281, 2&3
2821 702
275, 06g
269; 920

132,671
125,026
132,264
134,080

266, 532
139,501
141, 204
147,123

3

4
4
4
4

285

FEDERAL, RESERVE

MABCH 1,1919.

FEDERAL RESERVE NOTES.
Federal Reserve note account of each Federal Reserve Bank at close of business on Fridays, Jan. SI to Feb. 14, and on Thursday,
Feb. 20, 1919.
[In thousands of dollars, i. e.,000 omitted.]
!
Boston.

Federal Reserve notes received .
from agent—;iet:
;
Jan 31
162,564
Feb. 7
159,887
Feb. 14
160,110
Fob. 20
1161,423
Federal Reserve notes held by ,
bank:
Jim. 31
! 12,999
Feb. 7
: 7,408
:
Vnb. 1
V b 14
4
4,228
4228
Feb. 20
3,233
Fodersl Reserve not<;sin wVat\\
circulation:
Jan. 31
149,565
Tei>. 7
152,479
Feb. 14
155,884
158; 190
Feb. 20
Gold deposited -:;iih or to credit
of Federal R o w . ;> ago; it:
52,220
Jar.'., 3i
52;079
i-'eb. 7
51,343
Fob. 14
Feb. 20
51,156
Paper delivered ;:o Federal Reserve agent:
145,637
Jan. 31
156.806
Feb. 7
164,934
:-'eb. 1-1
158,022
Feb. 20




York.

j Philaj dci-

767,671
767,972
779,760
767,024

1217,669
1218,541
!222,085
225,424

119,758
117,925
115,147
100,166

7,748
9,676
7,784
12,167

i 23,409
i 18,861
• 16,620
; 18,215

647.913
650;046
664,613
665,858

209,921
208,865
214,301
213,257

231,153
232,992
233,874
228,815

136,070 1111,391
i 133,892 1113,065
i 130,558 110,320
1130,661 113.009

405,026
407,665
409,884
410,057

260,979
259, .121
25S,669
257,793

78,632
75,603
72,702
71,497

140,744
132,620
130,996
130,482

j 54,106
! 52,231
! 50,246
i 49,165

41,187
41,071
41,243
41,398

304.032
302', 489
299,327
296,815

717,489
753,471
837,447
795,680

143,199
154,433
151,538
157.072

138,602
149,041
164,772
163.409

! 87,500
j 95; 023
! 98^455
i 100,892

76,857
77,007
76,396
| 78,049

Cleve- Richland. mond.

1254,562
1251,853
; 250', 494
-247,030

Atlanta.

1141,466 114,958
1140,278 116,351
\.134; 575114,774
i 135,814 116,589

San
St. 1 Minne- Kansas.
Louis. apolis. City. I Dallas. Francisco.

Chicago.

121,411
121,146
120,594
12i; 121

i444,167
1442,624
;439,462
1436.950

2,703,420
2,691,859
2,690,702
2,677,835

112,897 56,948 217,277
111,411 55,582 214,733
110,064 54,629 213,831
109,551 ! 53,050 213,835

1,302
1,495
1,273
1,212

7,304
6,842
6,597
6,643

1,572
750
1,390
741

1109,367
109,442
109,282
108,979

90,528
89,986
89,051
88,812

1105,533
j104,569
! 103; 467
1102,908

55,376
54,832
53,239
52,309

198,826
196,332
193,51£
192,393

! 2,450,720
i 2.454,160
i 2'. 40-8,388
j 2; 466.248

64,267
68,667
70,475
69,442

58,174
57,475
55,918
55318
55,318

51,230
49,744
48,797
477S5
47,7S5

22,206
22,058
20,540
20,021

12c,5C3
118,008
117,107
107,111

i 1,253,330
! 1,231,166
! 1.217,363
i 1,197.983

5,396 3,567 I 39,141
6,386 3,286 ! 34,959
i 3,617 I 4,454 29,578
! 5,153 1 3,580 26,893

12,044 j
11,704;
11,312 1
12,142 j

91,830
91,481
90,324
90,024

Total.

18,451
18,401
20,316 ;
21. 442

184,286 59,921 | 43,509 78,615 53,193 94,677
185,460
46,636 82,305 5o,uSl 105.448
187,399 i 65^572 | 43,984 i 84,605 56,087 106,317
206,071 68,467 i 49,824 81,178 52,718 112,624 i

252,691
237,694
222,314
21i; 587

1,823,485
1,920,051
2,037,506
2,022,006

286

FEDERAL, RESERVE BULLETIN.

MARCH 1,1919,

Federal Reserve note account of each Federal Reserve agent at close of business on Fridays, Jan. 31 to Feb. H and on
Thursday, Feb. 20, 1919.
[In thousands of dollars; I. e., 000 omitted.]

Boston.

Received from Comptroller:
Jan. 31
Feb. 7
Feb. 14
Feb. 20
Returned to Comptroller:
Jan. 31
Feb. 7
Feb. 14
Feb. 20
Chargeable to Federal Reserve
agent:
Jan. 31
Feb. 7
Feb. 14
Feb. 20
In hands of Federal Reserve
agent:
Jan.
Feb.
Feb.
Feb.

31
7
14
20

Issued to Federal Reserve
Bank, less amount returned
to Federal Reserve agent for
redemption:
Jan. 31
Feb. 7
Feb. 14
Feb. 20
Collateral held as security for
outstanding notes:
Gold coin and certificates
on h a n d Jan. 31
Feb. 7
Feb. 14
Feb. 20
Gold redemption f u n d Jan. 31
Feb. 7
Feb. 14
Feb. 20
Gold settlement fund, Federal Reserve B o a r d Jan. 31
Feb. 7
Feb. 14
Feb. 20
Eligible paper, minimum
required!—
Jan. 31
Feb. 7
Feb. 14
Feb. 20




New
York.

253,120
253,600
254,560
250,560

1,305,480
1,313,480
1,326,680
1,326,680

64,056
07,333
70,070
71,257
188,464
186,267
184,490
185,303
25,900
26,380
24,380
23,880

162,564
159,887
160,110
161,423

Phila- | Cleve- Richdolphia.j land. mond.

Chicago.

553,600
559,440
559,440
559,440

330,420
330,420
330,420
330,420

325,840
327,840
327,840
327,840

200,580
201,780
202,820
204,820

199,600
200,560
200,560
204,560

374,309 77,361
383,508 80,389
388,920 85,290
407,656

42,713
45,457
47,081
50,595

40,879
43,267
45,840
46,601

29,897
31,014
31,841
32,686

253,059
250,031
245,130
243,924

283,127
282,383
280,759
277,245

159,701
158,513
156,980
158,219

169,703
169,546
168,719
171,874

492,607
490,904
487,742
485,230

163,500 35,390 28,565
162,000 31,490 30,530
158,000 23,045 30,265
152,000 18,500 30,215

18,235
18,235
22,405
22,405

54,745
53,195
53,945
55,285

254,562
251,853
250,494
247,030

141,466
140,278
134,575
135,814

114,958
116,351
114,774
116,589

931,171
929,972
937,760
919,024

767,671
767,972
779,760
767,024

217,669
218,541
222,085
225,424

9,220
9,079
9,343
11,156

12,239
15,381
14,929
14,053

12,082
12,714
15,813
14,608

14,094
14,350
12,726
12,212

2,106
2,231
2,246
1,165

43,000
43,000
42,000
40,000

70,000 66,550
70,000 62,889
70,000 56,889
70,000 56,889

95,000
95,000
95,000
95,000

52,000
50,000
48,000
48,000

113,818
119,233
119,498
116,548

87,360
88,047
84,329
86,649

506,692
508,851
521.091
509,231

139,037
142,938
149,383
153,927

San
St. Minne- Kansas
Louis. apolis. I City. Dallas. Francisco.

163,780 124,480
1163,900 124,480
{164,540 124,480
! 166,700 124,480

Total.

157,700
157,700
157,700
158,700

101,960
101,900
101,960
101,960

21,200
21,899
22,456
23,056

31,183
32,669
33,616
34,629

23,297
23,803
24,221
24,740

24,243
24,787
25,689

824,285
858,001
883,253
916,175

130,226
128,561
128,009
129,136

103,280
102,581
102,024
101,424

126,517
125,031
124,084
124,071

78,663
78,157
77,739
77,220

226,277
225,733
224,831
224,835

3,142,795
3,127,679
3,118,267
3,097,505

48,440
48,280
48,280
48,280

8,815
7,415
7,415
8,015

11,450
11,100
11,700
11,400

13,620
13,620
14,020
14,520

21,715
22,575
23,110
24,170

9,000
11,000
11,000
11,000

435,820
427,565
419,670

444,167
442,624
439,462
436,950

122,411
121,146
120,594
121,121

91,830
91,481
90,324
90,024

112,897
111,411
110,064
109,551

56,948
55,582
54,629
53,050

217,277
214,733
213,831
213,835

2.703,420
2,691,859
2,690,702
2,677,835

12,581
12,581
12,581
12,581

2,000

240,527
225,147
225,147
225,147

2,941
3,293
2,775
2,756

11,632
11,130
10,228
9,232

80,142
84.562
83", 768
83,379

60,993 ' 33,55-1
68,536 35,339
71,698 36,531
74,210 37,564

2,504
2,504
2,504
2,504

31,650
23,270
23,270
23,270

178,740
i 173,740
i 173,740
173,740

110,344
107,808
108,767
110,267

Atlanta.

13,052
13,052
13,052
13,052

2,413
2,297
2,469
2,624 j

250,520 3.967,080
250,520 3;985,680
250,520 4,001,520
251,520 4,013,680

5,087
5,544
6,382
5,871

3,336
2,736
2,544
3,011

2,122
2,423
1,866
3,266

2,870
3,384
2,437
3,425

36,270
3(>, 270
30,270
36,270

298,945
296,945
292,945
|290,944

60,931
65,931
67,931
66,431

43,000
42,000
41,000
39,000

48,360
46,360
46,360
44,360

6,684 111,921
6,184 106,878
5,184 106,879
4,684 97,879

932,661
921,457
908,458
889,457

73,771
75,280
73,531
75,191

140,135
140,135
140,135
140,135

57,144
52,479
50,119
51,679

33,656
34,006
34,406
34,706

61,667
61,667
61,267
61,766

34,742 91,724
33,524 96,725
34,089 96,724
33,029 106,724

1,450,090
1,460,693
1,473,339
1,497,852

1 For actual amount see "Paper delivered to Federal Reserve agent," on page 285.

287

FEDERAL KESEKVE BULLETIN.

MAIICH 1, 1919.

MEMBER BANK CONDITION STATEMENT.
Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve Bank
cities and in Federal Reserve Branch cities as at close of business on Fridays from Jan. 24 to Feb. 14, 1919.
1. TOTAL FOR ALL REPORTING BANKS.
[In thousands of dollars; i. e., 000 omitted.]
NewBoston .i York.
Number of reDorting banks:
Jan. 24
Jan. 31
Feb. 7
Feb. 14
United States bonds to secure circulation:
Jan. 24
Jan. 31
Feb. 7
Feb. 14
Other United States bonds
including Liberty bonds:
Jan. 24
Jan. 31
Feb. 7
Feb. 14
United States certificates of
indebtedness:
Jan. 24
Jan. 31
Feb. 7
Feb. 14
Total United States securities owned:
Jan. 24
Jan. 31
Feb. 7
Feb. 14
Loans secured by United
States bonds and certificates:
Jan. 24
Jan. 31
Feb. 7
Feb. 14
Other loans and investments:
Jan. 24
Jan. 31
Feb. 7
Feb. 14
Total loans and investments:
Jan. 24
Jan. 31
Feb.7
Feb. 14
Reserve with Federal Reservo Bank:
Jan. 24
Jan. 31
Feb.7
Feb. 14
Oash in vault:
Jan. 24
Jan. 31
Feb.7
Feb. 14...
Net demand deposits on
whieh reserve is computed:
Jan. 21
Jan. 31
Feb. 7
Feb. 14
Time deposits:
Jan. 24
Jan. 31
Feb.7
Feb. 14
Government deposits:
Jan. 24
Jan. 31
Feb.7
Feb. 14




Philadelphia.

Cleveland-

23,355
23,701
22,179
22,234
95,524
102,353
90,290
106,787
133,231
140.456
126,871
143,423

46,051
46,101
46,201
46,201

38|

15,265
15,265
15,265
15,265

19,855
19,857
19,855
19,855

17,155
17,154
16,908
16,907

85,545 ! 55,951 42,811
80,816 | 60,192 40,887
77, 238 ! 59,195 36,954
76,762 ! 56,739 35,292

104,439
90,970
82,094
73,009

44,585
45,571
48,197
53,230

162,590
183,478
180,166
212,577

82
11,497
11,497
11,497
11,497

301,343 43,426
292,176 44,721
290,218 42,557
288,174 44,904

41,055
41,207
41,355
41,355

85,297
97,017
94,054
113,187

110,598
117,388
120,260
148,712

1,070,226 140.220
1,066,066 153,235
1,024,489 148.708
1,154,692

237,198
239,411
238,853
266,829

719,832
727,789
688,070
820,317

San
Francisco.

St.
Minn- Kansas
Atlanta. Chicago. Louis, eapolis. City.

101
101
101
101

106
106
106
106
14,352
14,402
14,402
14,402

Richmond.

24,990
24,949
24,949
24,949

47,117
45,111
46,503
55,122

1125,526 105,193
|13O,712 101,263
132,341 98, 722
134,918 105,679

Total.

772
772
771
771

6,419 13,712
6,469 13,712
6,469 13,779
6,466 13,780

34,505
34,505
34,505
34,505

262,785
263,047
263,214
263,111

39,456 12,382 30,863
31,780 13,321 29,089
30,242 ! 12,501 27,865
31,082 12,064 20,765

21,393 36,035
21,443 40,025
21,191 36,874
20,600

799,999
769,727
739,108
723,713

39,185 26,707
43,622 28,523
43,575 28,407
52,576 33,574

15,908 79,036
15,830 76,528
15,662 76,829
16,947 91,314

1,457,219
1,514,776
1,463,955
1,742,993

95,796 ! 45,508 75,409
294,311 92,550 :i 48,313 74,907
282,115 90,725 I 47,377 72,986
305,441 100,565 52,104 79.195

55,230
55, 202
54,882
55,476

149.576
151,058
148,208
161,907

2,520,003
2,547,550
2,466,277
2,729,817

10,112 11,279
25,278 11,383
10,490 11,004
10,337 11,009

7,820
8,054
8,680
8,661

19,603
18,831
20,690
20,7.26

1,189,351
1,183,245
1,198,353
1,170,031

30,834
31,566
31,342
38,650

17,929
17,929
18,029
17,929

84,704
83,137
84,723
85,109

656,169
641,654
653,367
624,873

146,053
147,639
145,727
147,033

92,619
94;491
95,205
94,880

38,141
40,262
39,385
39,455

19,674
18,264
18,082
18,205

78,986
70,173
86,783
85,326

24,1.91
24,079
24,217
24; 417

761,795
758,122
756,195
753,434

3,970,774
3,991,812
3,944,615
3,962,778

627,326
022,872
60<>,52(>
G20,808

950,030
96(5,860
901,214
909,792

363,233
359,183
367,549
i370,201

314,012
311,408
301,478
295,561

1,303,398
1,357,629
1,334,404
1,372,905

372,555
379,280
368,379
380,020

225,099
220,124
230,599
219,552

438,484
430,441
441,324
435,609

175,430
174,315
171.141
170,119

523,977
522,014
522,587
522,039

10,092,149
10,100,720
10,000,011
10,072,938

979,730
981,715
907,789
981,966

5,697,169
5,699,532
5,622,471
5,742,313

913,599
923,74(5
900,901
937,429

1,235,853 1520,900
1,300,762 1530.157
1,295,272 1539,275
Ly 331,501 544,634

438,909
430,995
418,282
419,445

1,729,274
1,722,113
1,703,302
1,703,732

492,542
495,915
483,321
505,002

280,719
293,715
238,406
281,993

525,172
522,791
525,314
525,813

238,480
237,571
234,703
234,256

693,156
092,503
091,485
704,072

13,801,503
13,831,515
13,670,011
13,972.786

157,020 39,395 22,855
157,359 40,40(5 22,319
157,321 41,755 21,703
159,283 39,811 22,470

40,277
46,728
40,202
43,034

17,170 49,026
18,610 54,405
18,127 49,415
17,995 50,989

1,275,623
1,307,454
1,225,219
1,255,438

9,395 16,318
8,596 16,031
8,(101 15,ISO
8,704 15,501

9,313 21,176
8,943 19,783
9,352 19,764
9,058 21,395

368,298
353,950
353,177
361,138

80,884
77,412
67,247
71,659

647,056 59,-823
665,999 64,771
618,148 63,933
629,340 62,239

93,270
91,319
83,882
91,572

34,620
35,410
34,732
30,010

28,215
32,653
28,091
30,980

22,946
21,268
22,720
22,849

129,266
116,842
118,817
122,083

19,195
19,012
18,004
19,650

35,377
35,255
34,220
33,487

18,955
17,675
18,547
17,226

10, US
14,932
14,492
14,509

04,300
64,586
62,0G8
65,584

12,591
11,027
10,800
11,032

736,627
708,411
685,120
701,918

4,649,208
4,607,731
4,485,633
4,519,933

628,969
632,839
037,511
631,872

782,470
784,828
7*3,013
802,527

323,045
1324,778
328,222
324,189

246,855
242,024
243,505
244,791

1,160,537
1,108,571
1,140,789
1,189,781

296,360
300,020
300.170
303,131

106,139
106,333
108,733
108,729

252,089
259,377
250,937
258,187

19,170
20,080
20,408
21,310

278,231
280,150
281,848
283,294

04,110
07,191
65,567
68,900

99,890
100,778
102,327
101,440

402,870
405,038
408,903
410,243

57,209 11,276
34,115 23,850
47,623 I 14.420
54,382 I 14; 483

11,082
17,647
11,044
15,018

57,798
09,098
72,202
59,837

40,404
55,389
48,261
49,334

241,668 30,859
307,800 55,088
305,566 38,352
351,948 43,513

i152,170 421,135 9,995,791
! 153,844 417,149 9,952,408
152,509 423,915 9,780,907
157,960 433,184 9,911,607

211,522
223,913
214,015
210,747

386,893
387,091
380,415
391,S34

90.920 50,343
92;079 55,670
92,052 50,878
92,014 51,203

65,723
60,203
07,117
65,051

27,498
25,805
28,209
28,301

130,596
131,745
132,813
134,990

1,587,597
1,611.721
1,616', 452
1,624,454

17,100
20,300
19,063
20,441

10,044 4,448
19,930 I 4,205
11,899 i 2,987
15,700 I 2,603

30
8,202
2,597
423

489,447
693,681
581,909
014,536

11.397
GJ695
10,254

288

.FEDERAL RESERVE BULLETIN.

MARCH 1,1919.

Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve Banh
cities and in Federal Re-nerve Branch cities as at close of business on Fridays from Jan. 24 to Feb. 14,1919—Continued.
2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES.
[In thousands of dollars; i. e. 000 omitted.]
Philadelphia.

New
Bo ton,! York.
Number of reporting banks:
.Tan. 21
Jan. 3i
Feb. 7
Feb. 14
United States bonds to secure circulation:
4,228
Jan. 24
Jan. 31
... 4,278
4,278
Feb. 7
4,278
Feb. 14
Other United States bonds,
including Liberty bonds:
13,410
Jan. 24
13,587
Jan. 31
12,303
Feb.?
12,190
Feb. 1-1
United States certificates of
indebtedness:
69,665
Jan. 24
74,536
Jan. 31
62,423
Feb. 7
73,220
Feb. 11
Total United States securities owned:
87,303
Jan. 24
02,401
Jan. 31
79,004
Feb. 7
Feb. 14
Loans secured by United
States bonds and certificates:
67,093
Jan. 24
(55,195
Jan.31
67,478
Feb.7
67,691
Feb. 14
Other ioans and investments:
535,457
Jan. 24
533,124
Jan.31
531,162
Feb. 7
526,882
Feb. 14
Total loans and investments:
689,853
Jan. 24
690,720
Jan. 31
677,644
Feb. 7
684,281
Feb. 14
Reserve with Federal Reserve Bank:
66,347
Jan. 24
62,678
Jan. 31
53,491
Feb. 7
57,353
Feb. 14
Cash in vault:
13.751
Jan. 24
12,739
Jan. 31
13,988
Feb. 4
14,166
Feb. 14
Net demand deposits on
which reserve * is com- \
nnted:
!
* Jan. 24
565,406
Jan. 31
i 545,425
Feb. 7
1522,182
Feb. 14
1536,674
Time deposits:
I
Jan. "24
! 32,016
Jan. 31
31,644
Feb. 7
.
33,288
Feb. 14
| 33,311
Government deposits:
'
Jan. 24.
31,615
Jan. 31.
43,500
Feb. 7...
37,990
Feb. 14..




£5 !
Go !
65 !
65

Cleve- ! RichAtland. i mond. ! lanta.

San
St.
MinnChicago. Louis.!! eapolis.j.. Kansas Dallas. FranCity.
cisco.

44
44
44
44

!

11 !
II I

:

15
15
15
is

!
!
i
1

Total.

254
255
255
255

8 ;
8 !
8;
8 :

i

35,783 ! 7,487
35,883 7,487
35,983 1 7,487
35,983 I 7,487
250,357
245,572
246,554
216,282

34,515
34,887
32,995
35,586

677,237 74,051
680,490 86,126
642,664 | 8-4,030
765,179 100,699

4,471
4,471
4,471
4,471

2,773
2,732
2,732
2,732

3,800
3,800 j
3,800 |
3,800 !

4,598
4,598
4,590
4,591

4,060
4,060
4,060
4,060

18,400
18,400
18,400
18,400

46,067 26,894 2,475
35,404 19,992 2,359 8,045
31,516 18,107 I 1,950 7,163
26,558 18,946 ! 1,763 6,882

4,607
4,829
4,572
4,408

13,734
15,203
14,474
14,109

439,809
412,478
399,725
394,491

7,221
7,653
7,661
8,378

30,578
27,489
27,506
33,661

1,029,321
1,073,751
1,019,096
1,210,981

1,119 i 10,555 i 2,340
1,119 : 10,555 j 2,390
1,119 I 10,553 i 2,390
1,119 i 10,552 2,387

17,944 • 8,591
17,430 1 10,009
15,423
9,914
14,209 9,526

5,656
5,161
4,754
4.042

22,300
25,157
25,418
32,344

7,099
6,795
7,777
8,426

8,084
7,474
7,271
8,436

87,340 28,557
107,956 30,995
105,493 29,745
119,871 36,528

10,637
11,900
12,336
14,265

17,540
16,435
15,825
16,278

135,126 66,006
144,479 61,542
138,123 58,405
147,54S 66,026

15,452 20,049
16,649 19,823
16,676 18,525
18,405 21,447

969,377
961,945
925,201
1,047,444

116,053
128,500
124,512
143,772

44,715
47,058
45,312
51,024

18,463
19,536
20,423
20,684

611,077
595,076
610,341
582,392

138,739
140,289
140,679
141,840

25,610
27,809
29,038
28.725

14,551 4,190
15,620 3,944
15,314 4,307
14,954 I 4,320

3,567,545
3,603,231
3,570,079
3,577,771

552,675
548,855
531,609
545,067

265,320 73,153
268,478 70,296
270,710 70,409
273,682 74,418

5.147,999
5; 160,252
5,105,621
5,207,607

807,467
817,644
796,800
830,679

335,645
343,345
345,060
353,431

612,674
627,034
583,670
596,269

53,766
58,505
57,683
58,033

22,642 6,103
22.850 6,733
17; 013 ! 6,456
21,422 I 6,472

4,024
6,743
5,413
5,680

107,621
109,743
109,336
109,207

28,291
30,597
29,415
28,131

107,571
103,140
104,418
107,228

15,301
15,091
14,744
16,059

8,219 ; 1,885
7,405 1,485
7,506 1,676
7,662 1,625

2,693
2,721
2,479
2,397

39,609
38,706
37,939
39,227

7,224
6,133
6,376
6,198

4,272,158
4,233,775
4,119,832
4,145,539

549,496
552,832
557' 356
551,594

177,916
174,444
176,951
181,094

57,920 44,078
61,806 42,494
59,919 42,362
58,245 43,509

783,471
788,192
776,641
799,410

195,877 11,978
202,723 12,394
200,087 12,840
200,855 13,429

122,193
122,665
123,455
123,742

225,360 28,123
344,081 50,593
287,546 35,808
307,386 ! 40,251

14,30S
9,671
13,676
17,002

57,478
59,867
58,438
51,326

56,455 18,348
46,806 18,302
63,784 18,048
62,180 18,376 J
843,771
843,486
812,181
847,7S6

251,216
258,562
256,858
258,434

5,670
5,540
5,576
5,512

39,931
51,371
53,840
39,054

15,948 62,712 1,568,744
16,542 61,092 1,586,002
16,293 60,380 1,518,684
16,846 66,170 1,705,332

2,604
2,943
3,306
2,712

9,001
7,962
10,205
10,212

955,201
931,536
970,188
941,295

173,281
176,262
174,647
176,869

58,266
60,535
59,475
59,520

273,811
274,100
-..,
274,240
278, 634
""{

9,159,762
9,199,305
9,091,653
9,292,050

I 10,865
I 10,623
i 9,923
! 10,605

15,779
11,800
13,270
15,080

4,108
5,001
4,088
4,587

18,437
25,102
18,491
18,396

950,657
977,409
908,249
929,235

j 2,940
! 2,445
! 2,377
2,716

5,064
4,514
4,179
4,596

1,318
1,534
1,690
1,621

5,709
5,261
5,705
5,485

211,284
201,174
203,077
208,980

200,004 92,596 136,803 39,347 171,763
206,260 89,483 134,000 41,260 169,431
204,298 97,342 136,911 42,124 172,687
204,154 90,310 137,905 42,754 172,579

7,090,958
7,039,402
6,908,605
6,963,767

17,932 I 153,72G 62,967
19,060 I 155,219 62,888
19,239 ' 156,239 62,388
157,450 63,122
19,394

1,912
2,623
5,081 I 3,615
2,548 j 2,019
2,317 j 2,495

1,863
2,050
2.132
2,381

99,614
99,773
99,863

! 96,021 151,369 39,714 202,098 6,635,817
i 95,383 154,389 41,050 205,046 6,681,767
1103,914 153,990 39,776 203,655 6,602,781
! 94,802 153,041 39,962 202,252 6,645,423

|l06,167 | 79,208 [l, 035,352
335,570 1117,143
105,452 j 80,246 !1,034,771 338,406 1117,572
106,146 78,570 1,014,073 333,311 ;
!128,166
110,056 71,924 1,057,514 342,836 118,719

6,379
8,575
7,674
8,710

6.552
7; 180
6,772
9,974

i
I
i
i

17,319
17,388
17,286
17,466

8,387
8,458
8,430
7,481

3,128
3,097
3,138
3,101

10,082
10,332
10,875
10,535

641,984
654,443
654,939
658,596

13,211 2,405
19,811 3,894
13,827 i 2,905
18,984 ! 4,369

4,633
9,777
5,674
8,093

2,406
2,445
1,467
1,528

4,880
1,407
423

366,557
548,719
458,707
478,430

289

FEDERAL RESERVE BULLETIN".

MARCH 1, 1910.

Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve Bank
cities and in Federal Reserve branch cities as at close of business on Fridays from Jan. 24 to Feb. 14, 1919—Continued.
3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES,
fin thousands of dollars; i. e., 000 omitted.]
.Cleveland! Richmond Atlanta Chicago 1st. Louis ;! K JS!? S c Dallas 7
!
District.*! District.2 District.* District.* \ District.* District District.

!
Number of reporting banks:

i

Jan. 24
'
Jan.31
Feb. 7
;
Feb. 14
|
United States bonds to secure circulation:
!
Jan. 24
Jan. 31
!
Feb. 7
i
Feb. 14
,
Other United States bonds, including Liberty !
bonds:
!
Jan. 24
1
Jan. 31
1
Feb.7
Feb. 14
1
United States certificates of indebtedness:
Jan. 24
Jan. 31
Feb. 7
Feb. 14.
Total United States securities owned:
Jan. 24
Jan. 31
Feb.7
Feb. 14
Loans secured by United States bonds and certificates:
Jan. 24
Jan. 31
Feb.7
Feb. 14
Other loans and investments:
Jan. 24
Jan. 31
Feb. 7
Feb. 14
Total loans and investments:
Jan. 24
Jan. 31
Feb. 7
Feb. 14
Reserve with Federal Reserve bank:
Jan. 24
Jan.31
Feb. 7
Feb. 14
Cash in vault:
Jan. 24
Jan. 31
Feb. 7
Feb. 14
Net demand deposits on which reserve is computed:
Jan. 24
"
Jan. 31
Feb. 7
Feb. 11
Time deposits:
Jan/24
Jan. 31
Feb. 7
Feb. 14
Government deposits:
Jan. 24
3an.31
Feb. 7
.Feb. 14




1
Pittsburgh
2
3 Baltimore.

18
18
18 |

!

_i

21
21
21
21

18 j

12
12
12
12

ban JTan-i
cisco j Total.
District.* j

19
19
17
17

28
27
27
28

160
159
157
158

4,487
4,487
4,487
4,487

1,255
1,255
1,255
1,255

8,485
8,485
8,485

54,674
54,673
54,729
54,729

10,948
10,303
10.752
10)235

8,925
9,605
9,679
8,628

2,419
2,148
2,099
2,108

14,341
15,837
14,630
14,710

139,212
133,977
129,043
127,749

40,062
40,224
39,305
49,325

9,318
11,099
12,229
14,775

13,034
13,053
13,118
15,341

1,429
1,539
1,551
1,544

36,643
37,763
37,553
43,385

213,717
220,522
224,352
269,385

50,429
48,366
47,777
52,273

66,815
65.025
6li 149
70,973

25,516
26,651
30,015

26,446
27,145
27,284
28)456

5,103
4,942
4,905
4,907

62,085
60,668
06,580

407,603
409,172
408,124
451,863

10,673
9,464
9,306
9,198

9,025
9,897
9,670
9,799

.4,434
4,492
4,889
4,725

6,694
6,039
0,381
5,830

367
360
367
375

5,959
5)883

105,776
105,482
104,589
103,716

97,095
95,269
106,682
107,798

169,491
249,999
164,824
248,459
164,037
247)676
164,229 i 247, 765

106,228
105,427
98,368
105,430

149,527
150,151
148,080
148,240

14,150
13,718
14,093
13,908

211,410
205,755
207, S35
210,225

1,510,140
1,499,503
1,493,203
1,509,290

711,775 j
714,232 I
708,891
731,187

139,566 |
140,616 I
152,657
154,859

230,593
222,654
221,120
225,700

I
I
!
!

325,839
323,381
318,495
328,537

136,178
136,570
129,241
140,170

182,667
183,935
181,745
182,538

19,620
19,020
19,365
19,190

277,281
273,749
274,462

2,023,519
2,014,157
2,005,976
2,064,869

55,478 !
52,473 I
51,199
54,458 |

12,787
12,362 I
13,226 i
12,468 |

17,164 |
18,603 •
16,422
17,985

22,824
21,418
21,389
22,010

10,090
9,238
11,078
10,516

15,960
15,114
13,599
13,549

156,338
149,509
149,180
154,643

4,155
3,797
4,114

5,340
5,544
5,405
5,543

60,150
59,138
56,462
59,217

157.543 I
158)259 !
151,815
161,620

80,407
87,110
85,533
88,754

124,140
122,893
120,541
122,774

1,242,046
1,242,350
1,233,877
1,207,080

158,284
159,433
160,799
161,445 !

21,232
21.453 I
23,426
21,993

23,316
23,316
23,616
23,610

4,991
4,991
4.991
4,991

5,085
5,085
5,085
5,085

1,805
1,805
1,805
1,805

5,250
5.249
5)005
5,005

51,347
47,032
47,029
48,706

8,150
9,297
9,099
8,253

18,134
16,759
15,716
15,266 |

24,948
22,996
20.039
19', 843

67,879
71,245
73,681
91,212

18,142
19,077
19,939
21,881

27,210
26,522
26,976
31,922

142,542
141,593
144,326
163,534

31,283
33,365
34,029
35,125

56,993
56,739
56,071
55,964

11,188
11,982
11,946
11,936

512,240
515,900
508,494
511,689

16,451 !
15,583
Hi, 017
15,831
454,172
458,982
451,083
40(5,148
88,062
88,918
89,377
89,786
37,232 !
20,708 •
27,999 .
31,070 :

and Cincinnati.

New Orleans, Jacksonville, and Birmingham.
' Detroit.

0,511
6,692
5,770
5,671

'
j
I
I

103,806
109,014
112,382
112,453

!
!
'
;

8,479
7,836
v.397 !
7", 090 i
146.215
143) 500
142,724
142,181

13,966 j 49,415
49,301
13,566
13,207 • 49,180
'
13,331 ' 49; 547
4,578 !
9,718 j
6,622 I
0.548 i

10,919 I
11,301 i
10,801 !
12,375 |

7,914
6,355
10,097
9,551
6,796 ! 7.844
9,513 I 11)833
5
6
7
8

I
!
I
I

I
i
I
i

6,402

3,604
6,047
5,402

Louisville, Memphis, and Little Rock.
Omaha and Denver.
El Paso.
Spokane, Portland, Seattle, and Salt Lake City.

461,065
461,497
468,433
471,220
62,833
61,136
59,500
70,246

290

FEDEEAL EESEEVE BULLETIN'.

MARCH 1 , 1 9 1 9 .

IMPORTS AND EXPORTS OF GOLD AND SILVER.
Gold imports and exports into and from the United States.
[In thousands of dollars; i. e., 000 omitted.)
Ten days
Eleven days
Ten days
Total since Total, Jan. 1,
ending
ending
ending
1918, to Feb.
Jan. 20, 1919. Jan. 31,1919. Feb. 10,1919. Jan. 1,1919.
8,1918.
IMPORTS.

341

Total

261

2,006

1,025

37

262

622
8

1,441
2,100

522

:

843

173
8

Ore and base bullion
United States mint or assay office bars
Bullion refined
United States coin
Foreign coin

880

523

2,636

4,581

EXPORTS.

Domestic:
Ore and base bullion . .
.
United States mint or assay office bars
Bullion, refined
Coin

1
135

12
4,216

4,572

4,239

19

19

172

19

19

172

4,591

4,411

306

Total
...

2,395

441

Total
Foreign:
Bullion refined
Coin...

Total e x p o r t s . . . .

11

135
1
4,435

i
1,193

2,395

1,195

460

2,395

1,195

Excess of gold exports over imports since Jan. 1,1919, §1,955,000.
Excess of gold imports over exports since Aug. 1,1914, $1,069,451,000.

Silver imports and exports into and from the United States.
[In thousands of dollars; i. e., 000 omitted.]
Ten days
Eleven days Total Jan. 1 Total Jan. 1
Ten days
ending
ending
to
to
ending
Jan. 20,1919. Jan. 31,1919. Jan. 31,1919. Jan. 31,1918. Feb. 10,1919.

Total since
Jan. 1,1919.

IMPORTS.

589

249
25
188

743
-

Domestic:
Ore and base bullion
United States m i n t or assav office bars . . . .
Bullion, refined
Coin
.
.
.
.
Total
Foreign:
Bullion, refined
Coin.

.

2,489

1,854

6,243

68
403

3,170
93
245

254
22
454

970
90
857

2,717
—

5,576

5,997

2,584

8,160

4,714
2,135
6

6,020
4,121
72

10,734
8,079
78

9,2i8
883
20

19,952
8,962
98

10,213

18,891

6,017

10,121

29,012

92
22

EXPORTS.

4,389

6,855

Total

29
260

182
542

223
387

114

182
656

,

289

724

610

114

838

6,969

10,502

19,615

6,627

10,235

29,850

Excess of silver exports over imports since Jan. 1, 1919, 321,690,000.
Excess of silver exports over imports since Aug. 1,1914, §301,450,000




1
5,972
44

114

Total
Tota^ exports

2,255

43
15
96

Ore and base bullion
United States mint or assay office bars
Bullion, refined
..
.
. . . . .
United States coin
Foreign coin

MARCH 1, 1919.

291

FEDEBAL RESERVE BULLETIN".

Estimated general stock of money, money held by Treasury and by the Federal Reserve System, and all other money in the United
States Feb. 1, 1919.

General stock
of money in the
United States.

Gold coin 2
Gold certificates
Standard silver dollars
Silver certificates
Subsidiary silver
Treasury notes of 1890
United States notes
Federal Reserve notes
Federal Reserve bank notes.
National-bank notes
Total:
Feb. 1,1919
Jan. 1,1919
Dec. 1,1918
Nov. 1,1918
Oct. 1,1918
Sept. 1,1918
Aug. 1,1918
July 1,1918
Jan. 1,1918
Apr. 1,1917

§3,085,459,209

Held in the
United States
Treasury as
assets of the
Government. 1

$330,089,676

Held by or for
Federal Reserve
Banks and

81,475,074,167
459,714,110

Amount per
Held outside the capita outside
United States I the United
Treasury and i States Treasury
Federal Reserve ! and the Fed! eral Reserve
I
System.

242,203,752

8,258,055

9,287,120
2,726,187

346,681,016
2,703,420,225
138,250,180
721,928,498

11,515,175
37,115,287
2,857,366
48,761,064

55,525,750
222,948,540
7,703,579
19,778,107

$418,094,011 !
402,487,245 I
87,479,957 i
223,898,835
231,219,510
1,784,915
279,640,091
2,443,356,398
127,689,235
653,389,327

7,611,628,810
7,780,793,606
7,609,576,580
7,590,173,171
7,391,008,277
7,092,955,371
6,895,089,799
6,742,225,784
6,256,198,271
5,312,109,272

489,831,726
454,948,160
416,383,232
399,321,725
380,246,203
369,937,060
390,798,058
356,124,750
277,043,358
258,198,442

2,252,757,560
2,220,705,767
2,123,208,487
2,125,198,801
2,084,774,897
2,070,371,803
2,054,455,993
2,018,361,825
1,723,570,291
952,934,705

4,869,039,524
5', 105,139,679 !
5,129,984,861 I
5,065,652,645 j
4,925,987,177 j
4,652,646,508 |
4,449,835,748 i
4,3(57,739,209 !
4,255,584,622 |
4,100,976,125 j

373,685,930

§45.56
47.83
48.13
47.59
46.34
43.83
41.97
41.31
40.53
39.54

1 Includes reserve funds against issues of United States notes and Treasury notes of 1890 and redemption funds held against issues of nationaliibank notes. Federal Reserve notes, and Federal Reserve bank notes.
2 Includes balances in gold settlement fund standing to the credit of the Federal Reserve banks and agents.
3 Includes standard silver dollars* Includes Treasury notes of 1890.




292

FEDERAL EESEBVE BULLETIN.

MARCH 1,1919.

DISCOUNT RATES.
Discount rates of each Federal Reserve Bank approved by the Federal Reserve Board up to Jan. 31, 1918.
Maturities.
Trade acceptances.

Discounts.

Federal Reserve Bank.

33oston 1
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.

Within 15
days,
including
member
banks'
collateral
notes.

16 to 60
days.

Agricultural and
live-stock
paper
over 90
days.

61 to 90
days.

Secured by U. S. certificates of indebtedness or Liberty loan
bonds.
Within 15
days, including
member
banks'
collateral
notes.

ltoGO
days,
inclusive.

61 to 90
days.
inclusive.

I

i

t
i
4j
42

o
5
5
5
1 Rates for discounted bankers, acceptances maturing within 15 days, 4 per cent; within 16 to 60 days, 41 per cent; and within 61 to 90 days,
•if, per cent.
2 Rate of 4 per cent on paper secured by fourth Liberty loan bonds where paper rodiscounted has been taken by discounting member banks
at rate not exceeding interest rate on bonds.
NOTE 1.—Acceptances purchased in open market, minimum rate 4 per cent.
NOTE 2.—In case the GO-day trade acceptance rate is higher than the 15-day discount rate, trade acceptances maturing within 15 days will be
taken at the lower rate.
NOTE 3.—Whenever application is made by member banks for renewal of 15-day paper, the Federal Reserve Banks may charge a rate not
exceeding that for 90-day paper of the same class.




293

FEDERAL RESERVE BULLETIN.

MARCH 1,1919.

OPERATION OF THE FEDERAL RESERVE CLEARING SYSTEM, JAN. 16. 1919, TO
FEB. 15, 1919.
Items drawn on banks in Items drawn on banks in
Federal Reserve city I district outside Federal
Reserve citv (daily aver(daily average).
! age).

Total items drawn on
banks in own Federal
Reserve district (daily
average).

Number.

Number.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals:
Jan. 16 to Feb. 15,1919
Dec. 16,1918, to Jan. 15,1919.
Nov. 16 to Dec. 15,1918
Jan. 16 to Feb. 15,1918

Amount.

Amount.

§20,807,364
77,738,636
26,519,902 I
6,792,011 !
7,688,619
2;385,808
25,333,000 !
7,935,372 j
8,631,890 i
9,464,557 !
2,153,956
3,484,309

76,359
145,215
39,331
57,835
42; 617
23,641
53,415
30,990
20 718
54,767
24,072
30,991

810,149,529
50,513,399 i
5,235,218 ;
23,327,077
13,168.929
6,824;424
9,877,000 ;
7,374,527 i
1,855,438
13,038,519
7,073,389
7,923,310 :

90,287
160,852
60,382
63,050
44:800
26;012
68,089
35,928
24,282
59,189
25.484
32;540

830,956,893
128,252,035
31,755,120
30,119,088
20,857,548
9,210,232
35,210,000
15,309,899
10,487,328
22,503,076
9,227,345
11,407,619

90,944 !
95,622
85,174 ,
46,207 i

Number.




Number.

13,928 ;
15,637
21,051
5,215 i
2,183 !
2,371 I
14,674 I
4,938 i
3,564 i
4,422
1,412 :
1,549

198,935,424
221,889,946
219,162,199 !
153,847,568 !

599,951
635,080
590,685
227,312

156,360,759 :
165,386,737 !
167,471,893
80,248,466 ;

890,895
730,702
675,859
273,519

355,296,183
387,276.683
386,634,092
234,096,034

Itemsdrawn on banks \

Boston
Now York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
I
San Francisco
Totals:
Jan. 16 to Feb. 15,1919......
Dec. 16,1918, to Jan. 15,1919
Nov. 16 to Dec. 15.1918
Jan. 16 to Feb. 15,1918

Amount'.

Amount.

9,066
31,117
21,130
3,282
5,031
2,554
5,506
754
1,169
5,973
3,655
735

510,092,952
14,818,565
8,960,943
5,294,298
6,112,719
3,246,370
1,267.000
663,044
1,469,109
3,913,487
1,666,048
926,995

S9,972
99,828
88,326
44,654

58,431,530
64,079,660
66,301,701
42.852,372

j Number.

Items drawn on Treas- |
Number N u m b e r
urer of United States \
of nonof non(daily average).
|
°\
; member member m e m b e r
_ _
i banks in banks on banks in
" " d i s t r i c t . par list. district.
Amount. ^Number.
Amount, j

2,010
206
3,629
341
858

$2,738,894
639,102
1,852,349
298,000
537.625

2,800
977
1,986

2,314,470
200,118
2,455,842

12,807
13,662
13,394
7,128

11,036,400
1O,OSO,44O
10.704,900
5:836,958

8,816
53,614
7,834
6,702
3,348 i
5,242
15;257
9,759
1,055
6.703
3;284 :
4,437 I

126,051 i
77,282 !
135,173 !
48.224 ,

424
722
636
819

33,706,628 :
25,202,729 •
4,244,132 !
2,588,546 j
487,030 I
2,081'. 600 :
5,233,000
3,017,237
210,129 ;
754', 704 I
537,511
15,157,756 I

068
426
1,338
511
871
994
735
653

63,221,002
37,753,800
60,766.938
21.316,033

8,717
8,691
S,643
7,972

:
.
••
I

*244
321
345
755
312
227
2,500
1,233
1,207
2,190
249
1,039

244
321
425
1,132
1,507
1,574
4,160
2,572
2,838
3,190
1,184
1,201

10,622
10,342
10,281

20,348

9,319 j.

294

FEDERAL RESERVE BULLETIN.

M A R C H 1,1919=

CONDITION OF PRINCIPAL EUROPEAN BANKS OF ISSUE, 1913-1918,
Bank of England.
(Combined data for issue and banking departments.)
(From the London Economist.)
[In thousands of dollars; i. e., 000 omitted.}
| Bee. 31,1913. Dec. 30,1914. Dec. 29, 1915. Dec. 27, 1916. Dec. 26, 1917. Dec. 25,1918.
ASSETS.

250,510

264,275

89,787
64,233
253,729

89,787
72,061
516,998

89,787
159,816
545,416

89,787
278,304
518,094

53,605
283,732
497,958

53,604
346 037
484,582

|

577,994

1,017,037

1,045,529

1,150,460

1,119,194

1,269,217

j

70,822
15,827
49,913
297,280
66
144,086

70,822
15,978
131,067
623,182
116
175,872

70,822
16,118
241,755
544,914
87
171,833

70,822
16,111
253 624
616,715
107
193,081

70,822
16,065
204,439
604,232
50
223,586

70,822
15,850
115,059
725,289
48
342,149

!

Total

170,245

338,191

|
j
j
|

Gold and silver
Government securities:
Held by issue department
Held by banking department
Other securities

384,994

577.994

1,017,037

1,045,529

1,150,460

1,119,194

1,269,217

LIABILITIES.

Proprietors' capital
Rest (surplus)
Public deposits
Other deposits
Seven-day and other bills
Notes in circulation
Total

Bank of France.
(From weekly statements of the Bank of France J
[In thousands of dollars; i. e., 000 omitted.]
Dec. 26,1913. Dec. 10,1914.1 Dec. 30,1915. Dec. 28,1916. Dee. 27,1917. Dec. 26,1918.

Gold in vault
Other metallic reserve
Total vault reserve
Gold held abroad
Foreign credits
Government securities:
Bonds, consols, and advances to the G o v e r n m e n t Permanent investments
Advances to she Government; since outbreak of war.
Treasury bills discounted (advances to foreign
Governments)
Other Government securities
Loans and discounts
Bills matured and extended
Advances on bullion, specie, securities, etc
Bank premises
Sundry assets
Total.

678,856
123,532

799,359
67,750

802,388

807,109

294,607
"149," 074'

639,682
47,798

664,009
61,441

1,035,903

709,795
326,766
159,380

687,480
393.102
150;231

725,450
393,162
450,939

694,800

57,900
965,000

57,900
1,428,200

57,900
2,412,500

57,900
3,309,950

-!
41,165
702,040 I
2
150,686 j

121,590
21,882
82.859
354,002
222,320

347,400
21,742
119,599
258,395
254,326

621,460
21.805
176; 009
221,395
236,386

680,518
21,757
401,614

79,806

105,919

130,0-16

"234,"633
8,960
299.202

3,789,422

5,108,374

6,534,085
35,223
8,292
<>73
21,555
456,676
5,838,172
223,194
6,584,085

'"93^064"
1,397,033

LIABILITIES.

Capital
Surplus, including special reserves...
Dividends unpaid
Government deposits
Other deposits
Bank notes in circulation
Sundry liabilities
Total.




652,885
56,910

"*."263," 962
57,900

967,950
67,953

35,223
8,206
309
77,848
111,038
1,102,715
61,694
1,397,033

1
2

3,145,224
!
35,223 ;
34,075 !
515,087 i
1,927,306 j

I"
35,223
8,292
4,211
33,562
407,970
2,568,801
S7,165

3,219,012
82,922

35,223
8,292
4,985
48,609
562,352
4,311,002
137,911

3,145,224

3,7S9,422

5,108,374

35,223 i
8,292 !
4,853
2,897

No data available as at end of 1914. Incomplete data for Dec. 10,1914, taken from the annual report of t h e bank for 1914.
Advances.on securities onlv.

295

FEDERAL RESERVE BULLETIN.

MARCH 1, 1919.

German Eeichsbanh.
(From the Deutscher Reiclisanzeiger).
[In thousands of dollars; i. e., 000 omitted].
Dec. 31,1913. Dec. 31,1914. Dec. 31,1915. Dec. 30,1916. | Dec. 31,1917. Dec. 31,1918.

581,954 j
7,633

278,453
65,886

506,863
208,250
1,264
936,903
5,443
8,086
51,173
1,717,982
42,840 i
17,726 i
1,200,924 !
418,144 !
38,348 i

885,250

1,717,9

615,929
312,920
160
3,473,873
1,217
21,220
497,752

543,572:
1,254,599
715
6,530,491
1,429
37,159
569,060

4,923,071

8,937,025=

42,840
20,342 :
1,917,007:
1,086,281 '
134,070 :

42,840
21,453
2,729,324
1,915,993
213,461

42,87622,629
5,285,182
3,291,924
294,414

3,200,546 !

2,358,130

538,808
4,764

603,757 i
100,457 :
332 !
2,287,124 !
2,322 ,
19,932 j
186,622 :

42,840
19,171
1,646,405
561,445

572,768
43,161

4,923,071

8,937,025

2,358,130

42,840
16,671
617,240
188,763
19,736

599,873 .
3,884 "
.

589,587
306,512
745
1,381,189
3,079
12,227
64,791

885,250

Total.

8,774

344,339
10,996
3,038
354,798
22,485
96,012
53,582

Gold
Other metallic reserve.
Total metallic reserve
Imperial Treasury and Loan Bank certificates.
Notes of other banks
Bills, checks, and discounted Treasury bills....
Advances on collateral
Securities
Sundry assets

LIABILITIES
Capital paid in
Surplus
Notes in circulation
Other liabilities payable on demand.
Sundry liabilities
Total.

Austro-Hunganan

Bank.

[In thousands of dollars; i . e., 000 omitted.]
! Dec. 31,
: 1913.

Dec. 31,
1914.

, 213,757

Dec. 31.
1915.

251,421
12,156
52,989

Total.

T | 25,454

138,758
12,156
13,387

316,566

Gold coins and gold in bars.
Bills and foreign notes
Silver and fractional coins..

242,065

164,301

••"•

2,854

•

Notes of the war loan banks
Discounted bills, warrants, etc
Advances on securities
Loans to Austrian Government
Loans to Hungarian Government
Old Austrian debt
Treasury cer tincates:
£5 Austrian Government..
Hungarian Government
Securities
Mortgages
Other assets

Dec. 31,
1918.

53,717
12,156
11,443

53,074
4,826
11,524:

71,753

77,316

69,424

24,189
578,771
694,552
745,216
328,502
12,156

21,722
571,746
694,738
1,932,804
842,411
12,156

, 8
584,13S
1,691,512
4,464,088
1,830,694
12,156

=

24,567
603,091
667,188
79,248
47,433
12,156

187,607
62.931

y 415,999
887,769

j

12,156

12,156

!
I
I

3,467
60,757
27,823

9,893
60;537
26.343

10,124
60.144
42', 880

10,331
60,587
58,598

10,3f>6
59,110
205,948

955,879
547,075.
2,533
57,410
253,474

671,307

1/463, 770

1,711,132

2,584,655

4,428.307

10,558,856

! 42,546
j 6,515
i 505,212
|
| 34.119
i 59* 106
! 23,809

42,546
7.020
0i0;694

42,546
42,546
7, 696
8,291
1.451,093 i 2,206,033

42,546
8, 54.8
3,735.882

-.

LIAIJIIJTIES.
Capital stock
Surplus
Notes in circulation
Scrip payable in 3 and 6 months (Kassenscheine)
Deposits in giro account and other demand liabilities
Mortgage bonds
Other liabilities




58,759
1,143
11,851

Dec. 31,
1917.

;

Total

Total

Dec. 31,
1916.

289,126
58,495

55,271
57.905
96,621

I 671,307 j 1,463,770 j 1.711,132

88.103
58, 121
183,561

396. 762
55; S6fi
188,603

2,584,655 j 4,428,307

42,546
8,509
7,210,253
1,502:954
1,446', 806
54,512
293,276
10,558,856

296

FEDERAL RESERVE BULLETIN.

MARCH 1,1919.

ABSTRACT OF CONDITION OF MEMBER BANKS.
Abstract of reports of condition of member State banks and trust companies in each Federal Reserve district on Dec. 31,1918.
[In thousands of dollars, i. e., 000 omittcd.j
District
District
No. 1 (31
No. 2 (101
banks). I banks).

District
N o . 3 (29
banks).

District
N o . 4 (66
banks).

1,581,254
650
3,714
115,182
177,024

133,162
102
722
16,862

285,776
156
95
6,464
27,525

72
35,299
122
1,694
85,501
8,528
241
390 |
32,111 j

455
123,837
243
8,237
494,682
41,463
6,319
673
251,613

5
12,882
28
1,995
96,346
6,946
2,805
340
14,670

17,085 I
2,316 !
1,849
14,768
34,450
7,038
527
4,987

231,602
12,753
11,985
43,258
270,612
28,189
13,439
71,429

3,975
456
373
5,768 !
16,424 !
3,320 '
736
6,491

District
No. 6 (54
banks).

District
No. 7 (288
banks).

1,026
6,399

119,449
556
42 i
7,883
14,887

709,835
362
7,7*5
13,708
74,527

915
25,897
151
2,708
145,437
13,240
4,332
920
33,686

4,618
33
471
11,174
1,754
758
188

7
12,407
90
791
17,379
6,629
2,218
534

1,582
74,313
673
4,090
181,593
15,056
1,906
2,206
93,387

7,353
1,019
404
11,347
24,241
3,124
805
1,693

887
306
119
3,045
4,709
386
10
592

3,108
486
6,912
13,631
2,268
255
2,191

29,701
11,021
3,121
33.842
75; 188
7,608
928
21,335

324,408 j

597,288

110,430

249,532

1,363,695

21,302 I
45,286

31.645
59j 212
10,346
378
950
362
1
13,255
199,604
234,320
8,158
28,, 087
630
89
6,183
4,068

9,381
6,621
2,045
181
55
149
4
7,125
49,203
26,182
1,943
5,091
1,130
1,001
319

15,840
10,584
2,020
327
268
222
19
30,347
115,235
43,329
5,030
15,746
931
421
7,995
1,218

72,620
66,207
15,834
664
4,071
830
122
74,674
497,032
536,786
25,635
40,5S5
2,226
7,715
15,142
3,552

597,288

110,430

249,532

1,363,695

3,823

1,472

19,785

20,612

District
No. 5 (37
banks).

BESOUECES.
Loans and discounts
Overdrafts
Customers' liability under letters of credit
Customers' liability account of acceptances
Liberty bonds
Other United States bonds (exclusive of United States bonds
borrowed)
United States certificates of indebtedness
War savings and thrift stamps actually owned
!
Stock of Federal Reserve Bank
j
Other bonds, stocks, etc. (exclusive of securities borrowed). .|
Banking house
i
Other real estate owned
i
Furniture and fixtures
|
"Due from banks and bankers
I
Exchanges for clearing house, also checks on banks in same
place..
Outside checks and other cash items
Gold coin and certificates
!
All other cash in vault
!
Lawful reserve with Federal Reserve I*auk
|
Items with Federal Reserve Bank in process of collection
|
Interest earned but not collected
'.
|
Other assets
j
Total

I

325,927
288
3
13,268
13, J.72

599,596

3,488,611

63,806

LIABILITIES.
Capital stock paid in
Surplus fund
Undivided profits, less expenses and taxes oaid
Interest and discount collected b u t not earned
Amount reserved for taxes accrued
Amount reserved for interest accrued
,
Due to Federal Reserve Bank
Due to banks and bankers
Demand deposits
Time deposits
United States deposits
Bills oayable with Federal Reserve Bank
Bills payable other than with Federal Reserve Bank
Cash letters of credit and travelers' checks outstanding
Acceptances
'.
Other liabilities

—

Total.
Liability for rediscounts, including those with Federal Reserve Bank




27,075 | 118,371 ;
30,581 | 159,121 !
7,856 j
37,277 •
1,152 •
4,676 i
1,648 [
6,599 i
1,476
5,014 (
275
655 '
18,091
392,751
385,164
2,129,633
85,026
216,822
8,667
97,159
11,607
168,058
943
4,813
65
7,006
14,195
120,003
5,175
20,593:
599,596
19,122

125,163

MARCH 1,

297

FEDERAL RESERVE BULLETIN.

1919.

A bstract of reports of condition of member State banks and trust companies in each Federal Reserve district on Dec. 31,.
1918—Continued.
[In thousands of doilais, i. e. G O omitted.]
O
District j .uistrict
No. 8(44 I No. 9 (70
banks). ! banks).

RESOURCES.

Total
United
States
1(930 banks).

District i District ! District
N o . 10 (27 . N o . 11 (97 j N o . 12 (86
,
;
banks). ! banks).

|

Loans and discounts
!
Overdrafts
\
Customers' liability under letters of credit
|
Customers' liability account of acceptances
i
Liberty bonds
i
Other United States bonds (exclusive of United States bonds borrowed). |
United States certificates of indebtedness
i
War savings and thrift stamps actually owned
j
Stock of Federal Reserve Bank
'
i
Other bonds, stocks, etc. (exclusive of securities borrowed)
Banking house
Other real estate owned
Furniture and fixtures
Due from banks and bankers
Exchanges for clearing house, also checks on banks in same place
Outside checks and other cash items
Gold coin and certificates
All other cash in vault
Lawful reserve with Federal Reserve Bank
Items with Federal Reserve Bank in process of collection
Interest earned but not collected
.*
Other assets

50,758
97

347,683

Total.

182,074
417
510
8,642
27,635
14
15,772
100
1,318
34,548
5,680
838
703
27,782
5,801
1,795
1,014
5,523
15,761
6,366
147
5,243

81,861

96,796

20,145
5,311
264
277
344

1,970
1,218
75
78
72

5,265
3,224
669
195
98
136

36,757
131,535
75,575
5,312
33,208
1,208
511
8,642
4,769

13,148
27,432
29,659
820
701
374
12 !

17,246
46,026
20,020
963
1,819
644
4
410
77

347,683

81,861 !

96,796

58,254

163,959

7,482,113

407 |

416

2,423

2,151

228,044

13
2,475
199
3,940
43
244
4,488
873
218
290
11,185
783
344
151
1,701
3,673
171
87
128

51,285
108
7
410
3,627
170
2,445
44
254
10,755
920
126
135
15,373
1,481
1,034
180
1,761
4,944
1,523
214 i

36,585
207
237 i
3,567 !
411 i
1,237 I
74
262 j
716
1,196 !
450 i
428 !
6,224
578
371
112
1,822 •
2,731 !
364 i
14 |
670 j

90,767
297
494
1,158
7,345
53
9,330
113
481
14,978
2,765
1,835
596
16,467
2,093
872
635
3,847
8,217
1,141
222
253

3,630,678
3,381
12,959
168.713
375,045
3,883
321,977
1,714
22,545
1,097,597
105,050
22,046
7,401
543,316
307,918
35,395
20,428
133,592
474,579
61,498
17,170
115,226

58,254 I

163,959

7,482,113

LIAE1TLITIES.

Capital stock paid in
Surplus fund
Undivided profit?, less expenses and taxes paid
Interest and discount collected but not earned
Amount reserved for taxes accrued
Amount reserved for interest accrued
Due i o Federal Reserve Bank
Due to banks and bankers
Demand deposits
Time deposits
United Stales deposits
Bill? payable with Federal Reserve Bank
Bills payable other than with Federal Reserve B a n k . . .
Cash letters of credit and travelers' checks outstanding Acceptances
Other liabilities
Total
Liability for rediscounts, including those with Federal Reserve Bank.. .j




10,726

13!

6,823
2,260
465
13
67
24
29
3,388
33,993
6,006
377
2,100
2,530

181

350,110
11,674
409,680
4,469
93,315
2,181
8,111
142
15,007
187
9,156
131
1,109
4
628,139
14,230 j
3,851,970
63,624
58,548
1,361,020
1,710
160,464
3,610
342,009
1,643
18,963
524
16,335
1,157
175,523
125
41,202

298

FEDERAL RESERVE BULLETIN.

MARCH 1,

1919.

Abstract of reports of condition of member State banks and trust companies of the Federal Reserve System on Dec. 31,1918,
arranged by classes.
[In thousands of dollars, i. e., 000 omitted.]
i

Central re-i Other re- j (i. n n n + n
serve city i serve city j b^r'zr*,JU
banks (54 | banks (140 | a n k ? <?
banks). I banks).

Total
United
banks),
Dec. 31,
1918.

Total
United
States (847
banks),
Nov. 1,
1918.

RESOURCES.

Loans and discounts
Overdrafts
Customers' liability under letters of credit
Customers' liability account of acceptances
Liberty bonds
Other United States bonds (exclusive of United States bonds borrowed).
United States certificates of indebtedness
War savings and thrift stamps actually owned
Stock of Federal .Reserve Bank
Other bonds, stocks, etc. (exclusive of securities borrowed)
Banking house
Other real estate owned
Furniture and fixtures
Due from banks and bankers..
Exchanges for clearing house, also chocks on banks in same place..
Outside checks and other cash items
Gold coin and certificates..
All other cash in vault
Lawful reserve with Federal Reserve Bank
Items with Federal Reserve Bank in process of collection.
Interest earned but not collected
'
Other assets
Total.,

1,813,458
713
11,826
134,327
178,698
127
130,169
107
10,120
498,395
39,958
5.545
719
284,833
251,544
16,934
13,893
47,741
304,440
33,570
12,069
72,863

i

j
1
I
i
!
!
I
i
I
|
!
j

1,031,502
1,351
1,120
31,641
97,264
1,327
116,598
423
7,828
352,851
40,522
11,671
2,597
146,225
45,010
12,636
3,032
43;256
108,824
20,671
3,049
36,612

785,718
1,319
13
2,745
99,083
2,429
75,210
1,184
4,597
246,351
24,570
4,830
4,085
112,258
11,364
5,825
3,503
42,595
61,31.5
7,257
2,052
5,751

3,862,049 i 2,116,010 I 1,504,054

3,630,678
3,664,049
3,383
3,357
31,798
12,959
168,713
168,937
375,045 1
386,049
3,883
266,899
321,977
1,714
1,911
22,317
22,545
1.067,650
1,097,597
100,788
105,050
22,149
22.046
7,097
7; 401
504,539
543,316
191,620
307,918
30,426
35,395
21,901
20,428
106,138
133,592
474,579
420,443
61,498
46,326
17,170
12,792
115.226
7,482,113

7,144,076
335,196
394,106
104,480
6,524
12,779
16,045
806
544,387

LIABILITIES.

Capital stock' paid in
Surplus fund
Undivided profits less expenses and taxes paid
Interest and discount collected but not earned
Amount reserved for taxes accrued
Amount, reserved for interest accrued
Duo to Federal Reserve Bank
Due to banks and bankers
Demand deposits
Time deposits
United States deposits
,
Bills payable with Federal Reserve Bank
Bills payable other than with Federal Reserve Bank...
Cash letters of credit and travelers' checks outstanding.
Acceptances
Other liabilities
Total

Liability for rediscounts, including those with Federal Reserve Bank
Ratio of reserve with Federal Reserve Bank to not deposit liability (per cent)




140,791
199,122
40,212
4,789
9,934
5,174
393
438,336
! 260,166
,
313,322
102,312
172,422
15,118 I
140,711
19,247
I 3,862,049
138,982
13.1

111,722
151,359
29,549
2,352
3,766
1,986
95
130,841
934,269
549,521
34,978
108,442
6,685
1,208
32,290
16,947

97,597
59,199
23,554
970
1,307
1,996
621
58,962
657,535
498,177
23,174
61,145
12,278
9
2,522
5; 008

350,110
409,680
93,315
8,111
15,007
9,156
1,109
628,139
3,851,970
1,361,020
160,464
342,009
18,963
16,335
175,523
41,202

2,116,010

1,504,054

7,482,113

29,260
7.0

228,044
11.0

59,802 I
10.0

3,379,073

1,278,948
572,618
222,824
23,956
18,969
189,104
44,261

299

FEDERAL, RESERVE BULLETIN.

MARCH 1, 1919.

Abstract of reports of condition of all member banks of the Federal Reserve system on Dec. 81, 1918, arranged by classes
(including 7,762 national banks and 980 Stale banks and trust companies).
[In thousands of dollars, i. e., 000 omitted.]
!

Total
iJnited
States

Central
Other j Country
reserve
reserve { banks"
city banks city banks !
(8,085
(101 banks). (506 banks).! banks).

banks),
Dec. 31.
1918. '

Total
United
States
(8,596
banks),
Nov. l,
1918.'

RESOURCES.

Loans and discounts
Overdrafts
Customers' liability under letters of credit
Customers' liability account of acceptances
Liberty bonds...."
United States securities (exclusive of United States securities borrowed)
War savings and thrift stamps actually owned
Stock of Federal Reserve Bank
Other bonds, stocks, etc. (exclusive of securities borrowed)
Banking house
Other real estate owned
Furniture and fixtures
Due from banks and bankers.
Exchanges for clearing house, also checks on banks in same place..
Outside checks and other cash items
Cash in vault.
Lawful reserve with Federal Reserve Bank
Items with Federal Reserve Bank in process of collection..
Due from United States Treasurer
Interest earned but not; collected
Other assets

I
i

4,595,232
1,740
14,147
290,593
418,069
476,580
241
21,814
•805,175
79,273
7,518
1.321
488', 086
880,003
35,897
173,654
775,958
128,324
5,602
20,934
88,918
19,059

Total.

4,099,068 ! 4,851,680 13.545,969
11.183
3,426
16,349
' G56
11,360 :
26.163
19,036
150,586
460,215
446,941
1,588,425
723,415
519,620
1,875,780
879,580
1,519
8,209
6,449
24,862
33,96980,645
761,364 1 1,248,618 2.815,157
133,609 i
173,978
'386,860
25,022 i
34,518
87,058
7,976
32,604 1
41,901
780,612
925,094
2,193,772
252,574
1,194,122
61,545
37,595
33,184 j
106,676
199,033 !
302,493
675,180
452,116
1,654,742
426,668
186,986 !
347,882
32,572
15,362 j
45,569
24,605
10,626
51,980
20,420
39,345 I
135,795
7,532

13,758,061
20,163
44,361
488,530
3,579,260
12,080
79,744
2,760,037
382,707
68,894
41,733
2,035,664
793,703
94,424
571,090
1,519,651
306,751
39,160
25,769
91,177

8,159,602

26,712,959

9,849,779

27,318,440

LIABILITIES.

Capital stock r)aid in
Surplus fund/.
Undivided profits, less expenses and taxes paid
Interest and discount collected but not earned
Amount reserved for taxes accrued
Amount reserved for interest accrued
Due to Federal Reserve Bank
Due to banks and bankers
Demand deposits
Time deposits
.
United States deposits
Bills payable with Federal Reserve Bank
Bills payable other than with Federal Reserve B a n k . . .
Cash letters of credit and travelers checks outstanding..
Acceptances
National-bank notes outstanding
Other liabilities
,
Total.
Liabilities for rediscounts, including those with Federal Reserve Bank
Ratio of reserve with Federal Reserve Bank to net deposit liability (per cent)




327,541
405,692
125,155
20,694
31,438
7,233
1,240
,858,018
,041,602
423,642
192,848
456.831
'530
24,971
303,122
48.842
39; 360

433,920
697.634 1,459,095
400,697
448; 146 1,254,535
111,933
431,782
194,694
19,560
16,733 !
56,987
15,035
8,632 '
53,105
4,725
21,109
9,151
2,434
10,020
6.346
1,506,296
429,741 3,794,055
3,670,680 4,597.021 13,309,303
979,148 2,43i; 530 3,834j320
159,888
471,632
118,896
417,958
284,484 1,159,273
19,216
80,527 I
60.781
38,021
12,176
'874
480,624
157,192
20,310
676,311
173,485 I 453,984
187,741 j
75,259
72;822

9,309,059 I
237,437 j
13.5

1,442,206
1,223,342
'482,217
34,387
44,303
30,390
10,882
3.435,053
12.016,310
3)650,943
1,707,627
1,081,956
102,661
42,608
521,823
675,165
21i;086

9,849,779 j 27,318,440 I 26,712,959
280,907 I

io.3 I

211,707 i

730,051 i
10.4 !

847,938
10.4

300

FEDERAL RESERVE BULLETIN.

MARCH 1,1.919.

Abstract of reports of condition of all member banks in each Federal Reserve district on Dec. 31,1918 {including 7,762 national
banks and 930 State banks and trust companies).
[In thousands of dollars, i. e., 000 omitted.]
District
No. 7
(1,334
banks).

"Loans and discount?
,
Overdrafts
Customers' liability under letters oi" credit
Customers' liability account of acceptances
I liberty bonds
Other 'United States securities (exclusive of United States
securities borrowed)
War savings arid thrift stamps actually owned
Stock of Federal Reserve Bank
Other bonds, stocks, etc. (exclusive of securities borrowed)..
Banking house
Other real estate owned
Furniture and fixtures
Due from banks and bankers
Exchanges for clearing house, also checks on banks in same
place
Outside checks and other cash items
Cash in vault
Lawful reserve with Federal Reserve Bank
Items with Federal Reserve Bank in process of collection
Due from United States Treasurer
Interest earned but not collected
Other assets
Total

District
No. 1 (423
banks).

District
No. 2 (723
banks).

District
No. 3 (661
banks).

District
No. 4 (814
banks).

District
N o . 5 (565
banks).

District
N o . 6 (426
banks).

1,022,013
682
48
56,476
76,377

4,315,769
1,775
5,940
236,349
512,038

860,729
304
300
19,305
172,712

1,165,551
946
1,612
21,161
165,816

626,741
1,213
11
13,315
97,137

478,150
1,729
519
14,978
72,058

1,993,197
1 990
8,100
48,357
205,508

134,715
392
6,692
222,160
29,384
1,328
1,778
126,754

522,550
717
20,807
999,026
84,619
10,610
3,512
403,009

108,158
432
7,463
371,649
31,176
6,244
3,126
114,334

173,775
968
9,073
395,762
53,602
10,614
3,827
203,704

98,977
550
4,057
84,155
24,475
3,007
2,694
101,840

98,673
'458
3,187
46,698
19,570
5,381
2,782
111,923

268,925
1,734
11,194
351,521
49,861
7,181
6,564
364,812

57,070
8,671 |
52,179 j
101,612 i
26,267 i
3,114 j
2,566 I
6,736 i

825,770
34,079
169,508
708,515
109,058
6,940
24,196
86,102

51,377
4,314
54,358
97,867
36,587
4,444
2,877
6,811

36,543
4)203
76,142
126,328
40,752
7,387
4,417
2,059

21,446
4,898
39,807
56,687
23,024
3,362
1,023
1,021

16,390
7,281
30,765
46,879
10,641
2,169
851
2,465

87,119
17,665
111,320
224,878
34,033
5,442
5,515
22,965

1,937,914

RESOURCES.

9,080,889

1,954,567

2,504,242

1,209,440

120,332
105,173
43,071

98,028
151,312
36,389
3,828
2,671
1,323
161
186,811
901,715
285,171
25,644
162,116
3 458
340
20,832
54,386
20,382

155,246
150,421

52,144
3,147
280
61,511
50,654
9,276

315,770
379,565
136,716
17 706
23,344
7,836
4,586
1,482,391
5,045,425
562,115
191,206
501,142
8,467
16,195
246,812
87,920
53,693

4,183
3,478
1,584
457
258,922
1,090,512
552,997
32,326
78,202
3,648
1,702
20,998
89,741
12,236

1,937,914

9,080,889

1,954,567

2,504,242

1,209,440

148,241

236,111

30,290

39,507

33,231

973,547 I 3,827,881

LIABILITIES.

Capital stock paid in
Surplus fund
Undivided profits, less expenses and tax* t
Interest and discount collected but not earned
Amount reserved for taxes accrued
Amount reserved for interest accrued
Due to Federal Reserve Bank
Due to banks and bankers
Demand deposits
Time deposits
United States deposits
Bills payable with Federal Reserve Bank
Bills payable other than with Federal Reserve Bank
Cash letters of credit and travelers' checks outstanding
Acceptances
National bank notes outstanding
Other liabilities
Total.
Liabilities for rediscounts, including those with Federal Re- ;
serve Bank
i




5,397
3,644
2,302
625

139,383
1,092,569
216,078

82,286
55,382
16.319
3', 716 j
1,147 !
1,477
2 556
136,133
535,182
216,756
19,528
59,426
6,328
21
13,915
51,623
7,645

65,676
41,643
11,904
1,913
824
631
294
107.867
446;023
152,915
22,941
54,624
5,266
540
15,213
40,144
5,129

i 221,753
I 158,724
j 52,323
i
7,555
! 10,226
i
2,276
!
468
I 553,027
1,560,066
! 920,701
! 60,860
! 89,526
7,000
j
8,949
!
! 50,619
I 78,848
I 44,960

973,547 I 3,827,881
41,622 !

64,091

MARCH 1,

301

FEDERAL RESERVE BULLETIN.

1919.

Abstract of reports of condition of all member banks in each Federal Reserve district on Dec. $1,1918 {including 7,762 national
banks and 930 State banks and trust companies)—Continued.
[Ih thousands of dollars, i. e., 000 omitted.)

RESOURCES.

District
No. 8 (514
banks).

Total
District I District
District ! District
United
N o . 9 (867 ! N o . 10 (994 N o . 11 (727 j N o . 12 (644 States
banks), j banks). I banks).
banks).
banks).
—1_

Loans and discounts
Overdrafts
Customers' liability under letters of credit
,
Customers' liability account of acceptances
Liberty bonds
Other United States securities (exclusive of United States securities
borrowed)
War savings and thrift stamps actually owned
Stock of Federal Reserve Bank
Other bonds, stocks, etc. (exclusive of securities borrowed)
Banking house
Other real estate owned
Furniture and fixtures
Due from banks and bankers
Exchanges for clearing house, also checks on banks in same place
i
!
Outside checks and other cash items
Cash in vault
[.awful reserve with Federal Reserve Bank
Items with Federal Reserve Bank in process of collection
Due from United States Treasurer
Interest earned but not collected
Other assets
Total

558,238
985
1,171
21,821
77,168

564,129
1,322
1,060
5,638

77,413
607
3,799
82,873
19,044

81,565
504
2,930
53,598
15,658
3,854
2,943
160,246
15,314
4,624
23,417
49,741
3,235
1,840
3,030
244
1,026,652

2,364
123,364
18,881
3,405
27,436
53,650
25,187
2,063
1,361
5,605
1,109,117

31,760 j

751,952
2,214
360
1,929
63,295

I

438,910
1,719
9
4,373
45,707

769,681
1,470
7,033
16,513
68,849

13,545,960
16,349
26,163
460,215
1,588,425

3,154
14,495
16,745
4,469
3,414
77,981
8,729
6,056
20,954
36 217
12,412
2,390
1,019
1 002

157,073
645
4,829
119,526
25,029
8,008
5,546
197,503
30,868
5,952
36,878
82,288
8,934
4,046
2,930
442

1,875,780
8,209
80,645
2,815,157
386,880
67,058
41,901
2,193,772
1,194,122
106,676
675,180
1,654,742
347,882
45,569
51,980
135,795

766,766

1,553,843

27,318,440

646,691
179,813
23,550
27,147
9,162
413
1,975
46,677
5,035

68,673
37,985
13,234
2,113
1,455
289
102
80,207
396,377
54,298
10,551
30,100
20,185
61
4,226
44,203
2,707

105,483
51,272
23,406
1,459
1,533
845
74
202,077
733,891
253,789
23,782
50,510
7,785
7,265
16,628
61,478
12,566

1,459,095
1,254,535
431,782
56,987
53,105
21,109
10,020
3,794,055
13,309,303
3,834,320
471,632
1,159,273
80,527
38,021
480,624
676,311
187,741

1,373,582 i

766,766

1,553,843

27,318,440

32,538

41,618

35,288

730,051

87,567
580
3,660
73,694
17,697
3.680
3,351
208,302
24,615
5,528
32,416
70,080
17,752
2,372
2,195
343
1,

LIABILITIES.

Capital stock paid in
Surplus fund
Undivided profits, less expenses and taxes paid
Interest and discount collected but not earned
Amount reserved for taxes accrued
Amount reserved for interest accrued
Due to Federal Reserve Bank
Due to banks and^bankers
Demand deposits
Time deposits
United States deposits
Bills payable with Federal Reserve Bank
Bills payable other than with Federal Reserve Bank
Cash letters of credit and travelers' checks outstanding
Acceptances
National Bank notes outstanding
Other liabilities
Total
Liabilities for rediscounts, including those with Federal Reserve Bank




80,552 j
46,857 i
17,773 1
2,479 |
1,184 !
670 !
3!
185,779 i
464,067
162,227
15,855
50,516
3,969
1,188
22,008
41,140
12,850

65,060
33,363
16,455
2,468
2,127
1,092
74
175,062
396,785
277,460
13,061
3,820
2,112
1,067
5,887
29,497
1,262

1,109,117

1,026,652

23,398

4,116

42,838
16,603
4,170
1,472
784
620

INDEX.
Page.

Page.

Acceptances:
Banks granted authority to accept up to 100
per cent of capital and surplus
251
Schedule showing when proceeds of bankers'
acceptances will be available if collected
through Federal Reserve Bank of New York. 245
Uniform acceptance collection schedule
adopted by all Federal Reserve Banks
246
Adelson, Louis C., appointed deputy governor of
Federal Reserve Bank of Atlanta
201
Amendments to Federal Reserve Act, as signed
by President on March 3
228
Austro-Hungarian bank, statement showing condition of
..
197,295
Balance of trade, restoration of
194
Bank of England, statement showing condition
of
197,294
Bank of France, statement showing condition of. 197,294
Bank transactions during February
258-260
Biggs, David C, appointed governor of Federal
Reserve Bank of St. Louis
201
Bills discounted during each month in 1918 by all
Federal Reserve Banks and by the Federal Reserve Bank of New York
.
276
Chart showing
277
Business conditions:
Special report by Federal Reserve agents on
business readjustment in the United
States
:
205-217
Summary of reports by Federal Reserve
agents
202-205
Certificates of indebtedness, issuance of, during
February
189
Chart showing bills discounted during each month
in 1918 by all Federal Reserve Banks and by
the Federal Reserve Bank of New York
277
Charters issued to national banks during the
month
252
Check clearing and collection:
Operation of system during the month
293
Regulations adopted by New York Clearing
House Association regarding collections outside of New York City, and rates to be
charged
243-246
Uniform acceptance collection schedule
adopted by all Federal reserve banks:
246
Clearing-house bank debits to deposit accounts,
weekly figures of
258-260
Commissioner of Internal Revenue, rulings of:
Computation of discount and interest for taxation purposes
249
Dividends declared for purpose of increasing
capital stock of a bank
256
Comptroller of the Currency:
Instructions to national banks relative to reporting "interest earned but not collected" and
"interest collected but not earned" on call
report
249
Statement of, relative to condition of national
banks as at date of last call, December 31,
1918
250

Credit barometrics, report on, by Alexander Wall.229-243
Department of Commerce, Industrial Board of,
formed to put into effect a plan for the readjustment of prices
196, 246
Discount and interest:
Computation of, for taxation purposes
249
Rates prevailing in various centers
265, 266
Discount operations of the Federal reserve banks
during January
276-281
Discount operations of the Federal reserve banks
during each month in 1918
276
Discount rates in effect
292
Elliott, M. C., resignation of. as general counsel of
the Federal Reserve Board
201
Failures, commercial, reported
252
Federal Advisory Council:
Changes in personnel
200
Meeting of
200
Federal Reserve Act, amendments to, text of, as
signed by the President March 3
228
Federal Reserve agent and governor of Atlanta
Federal Reserve Bank, change in
201
Federal Reserve agents' fund, summary of transactions for three months ending February 20
275
Federal Reserve Banks:
Discount operations of, during February. 198,276-281
Discount operations of, during each month in
1918
276
Resources and liabilities of
282-284
Federal Reserve note account of Federal Reserve
Banks and agents
285
Fiduciary powers granted to national banks
251,252
Foreign banks of issue, statement showing condition
of
197,294
Foreign trade outlook
193
German Reichsbank, statement showing condition
of
197,295
Gidney, R. M., appointed manager of Federal Reserve branch bank at Buffalo
201
Gold:
Imports and exports of.. .•
198,290
International gold clearance fund, efforts of
International High Commission regarding
establishment of
198
Report of committee to Secretary of Treasury
relative to conditions in the gold-mining industry
248
Gold settlement fund transactions, three months
ending February 20
274-275
Governors of Federal Reserve Banks of St. Louis
and Atlanta appointed
201
Harrison, George L., appointed general counsel of
Federal Reserve Board
201
Index of wholesale prices
261-264
Industrial Board of Department of Commerce formed
to put into effect a plan for the readjustment of
prices
196,246
Industrial readjustment during February
192
International High Commission, efforts of, regarding
establishment of international gold clearance
fund
198




II

INDEX.

Interest and discount:
Page.
Computation of, for taxation purposes
249
Rates prevailing in various centers
265-266
Stable condition in rates
196
Labor:
Readjustment of
192
Unemi)loyment, estimate of amount of, throughout the United States
.".. 192
Law department:
Bankers' acceptances against open accounts of
foreign purchasers
.
254
Domestic acceptances—security and limitations
254
Taxation of dividends declared to increase
capital—ruling of Commissioner of Internal
Revenue
256
Liberty loan, fifth:
Conditions under which loan is to be offered to
the public
189
#
Plan of financing, as submitted by Secretary of
the Treasury..'.
189
Plan of financing as proposed by Ways and
Means Committee
190
Statement of Secretary of Treasury before Ways
and Means Committee relative to
218-225
Liberty Loan Act, Victory, text of
225
Member banks:
Abstract of report of condition of State bank
members
296-301
Statement showing condition of
199,287-289
Money, stock of, in the United States
292
National banks:
Charters issued to, during the month
252
Fiduciary powers granted to
251, 252
Instructions by Comptroller to, relative to reporting "interest earned but not collected"
and "interest collected but not earned" on
call report
.\
249
Statement of condition of, as at last call of
Comptroller, Dec. 31, 1918.
250
New York Clearing House Association, regulations
adopted by, regarding collections outside of New
York City^ and rates to be charged.
243-246
Physical volume of trade
267-273
Prices:
Downward tendency in February
195
Index of wholesale
/.
261-264




Prices—Continued.
PageIndustrial Board of Department of Commerce to
formulate plan for the readjustment of.... 196,246
Restoring of, to a stable basis
191
Resources and liabilities of the Federal Reserve
Banks
282-284
Review of the month:
Public financing in February
189
The fifth Liberty loan
1
189
The problem of business readjustment
191
Labor readjustment
192
Industrial readjustment
192
Foreign trade outlook
193
Restoration of balance of trade
194
Price tendencies
195
Industrial Board of the Department of Commerce
196
Interest and discount rates
196
Banking conditions abroad
197
International High Commission's work in connection with an international gold-clearance
fund
198
Gold imports and exports
198
Operations of the Federal Reserve banks
198
Condition of member banks
199
Meeting of the Federal Advisory Council
200
Changes in personnel, Federal Reserve System. 200
Rulings of the Federal Reserve Board:
Bankers' acceptances against open accounts of
foreign purchasers
253
Domestic acceptances—Security and limitations
253
Section 22 of the Federal Reserve act
253
Secretary of Treasury, statement of, before Ways
and Means Committee relative to the fifth Liberty
loan
218-225
Silver, imports and exports of
290
State banks and trust companies:
Admitted to system during the month
250
Report of condition of
296-301
Tax rilling of Commissioner of Internal Revenue
relative to computation of discount and interest for
taxation purposes
249
Trade, physical volume of
267-273
Wall, Alexander, report on credit baromotrics by. 229-243
War Finance Corporation act, amendments to, as
passed by Congress
228
Wholesale prices, index numbers of
261-264

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