Full text of Federal Reserve Bulletin : March 1920

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FEDERAL RESERVE
BULLETIN
ISSUED BY THE

FEDERAL RESERVE BOARD
AT WASHINGTON

MARCH, 1920

WASHINGTON
GOVERNMENT PRINTING OFFICE
1920

FEDERAL RESERVE BOARD.
EX OFFICIO MEMBERS.

W. P. G. HARDING, Governor.
ALBERT STRAUSS, Vice Governor.

DAVID F. HOUSTON,

Secretary of the Treasury, Chairman.
JOHN SKELTON WILLIAMS,

ADOLPH C. MILLER.
CHARLES S. HAMLIN.

Comptroller of the Currency,

HENRY A. MOEHLENPAH.

' GEORGE L. HARRISON, General Counsel.
W. T. CHAPMAN, Secretary.

W. W. HOXTON, Executive Secretary.

R. G. EMERSON, Assistant Secretary.

H. PARKER WILLIS,

W. M. IMLAY, Fiscal Agent.

Director, Division of Analysis and Research.
M. JACOBSON, Statistician.

W. W.

PADDOCK,

Chief, Division of Operations and Examination,




J. E. CRANE,

Acting Director, Division of Foreign Exchange.

OFFICERS OF FEDERAL RESERVE BANKS.
Federal Reserve Bank
of-

Governor.

Chairman.

Cashier.

Deputy governor.

New York.

Frederic H. Curtiss.. .| Chas. A. Mores
!
Pierre Jay
| Benj. Strong, jr.1

; Chas. E. Spencer, jr.
| C. C. Bullen
! J. H. Case 2 3
! L. F. Sailer

Philadelphia.
Cleveland

R,. L. Austin
I). C.Wills..

E. R. Fancher.

Richmond...

Caldwell Hardy

George J. Seay.

Atlanta
Chicago

Joseph A. MeCord
Wm. A. Heath

M. B. Wellborn
J. B. McDougal

Wm. McC. Martin.
John H. Rich
I Asa E. Ramsay. . .
I Wm. F. Ramsey. .
I John Perrin...'....

D. C. Biggs
R. A. Young.
J. Z. Miller, jr
R. L. VanZandt
J. U. Calkins

Wm. H. Hutt, 4jr
M. J. Fleming
Frank J. Zurlinden 4.
C. A. Peple
R. H. Broaddus
I L. C. Adelson
| C. R. McKay 4
B. G. McCloud
j 0. M. Attebery

Boston

St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

2

i On leave of absence.

Acting governor.

3 Controller.

! 0. A. Worthington...
' Lynn P. Talley
Wm. A. Day
Ira Clerk.5
C. H. Stewart.5

* Assistant to governor.

W. Willett.
L. H. Hendricks.3
E. R. Kenzel.33
J. D. Higgins. 3
Channing Rudd.
A. W. Gilbart.3
W. A. Dyer.
H. G. Davis.
Geo. H. Keesee.
M. W. Bell.
S. B. Cramer.
J. W. White.
S. S. Cook.
J. W. Helm.
Sam R. Lawder.
W. N. Ambrose.

& Assistant deputy governor.

MANAGERS OF BRANCHES OF FEDERAL RESERVE BANKS.
Federal Reserve Bank of—

Manager.

New York:
Buffalo branch.

Ray M. Gidney.

Cleveland:
Cincinnati branch
Pittsburgh branch

L. W. Manning.
Geo. De Camp.

Richmond:
Baltimore branch

Morton M. Prentis.

Atlanta:
New Orleans branch
Jacksonville branch
Birmingham branch
Nashville branch

Marcus Walker.
Geo. R. De Saussure.
A. E. Walker.
Bradley Curry.

Chicago:
Detroit branch.

R. T*. Locke.




Federal Reserve Bank of—

Manager.

St. Louis:
Louisville branch...
M emphis branch.. .
Little Rock branch.

W. P. Kincheloe.
J. J. Heflin.
A. F. Bailey.

Kansas City:
Omaha branch.
Denver branch.

O. T. Eastman.
C. A. Burkhardt.

Dallas:
El Paso branch..
Houston branch.

R. R. Gilbert.
E. F. Gossett.

San Francisco:
Los Angeles branch
Ira Clerk (acting).
Portland branch
C. L. Lamping.
Salt Lake City branch. .. C. H. Stewart (acting).
Seattle branch
C. J. Shepherd.
Spokane branch
C. A. McLean.

SUBSCRIPTION PRICE OF BULLETIN.

The FEDERAL RESERVE BULLETIN is distributed without charge to member banks of
the system and to the officers and directors of Federal Reserve Banks. In sending
the BULLETIN to others the Board feels that a subscription should be required. It has
accordingly fixed a subscription price of $2 per annum. Single copies will be sold at
20 cents. Foreign postage should be added when it will be required. Remittances
should be made to the Federal Reserve Board. Member banks desiring to have the
BULLETIN supplied to their officers and directors may have it sejit to not less than 10
names at a subscription price of $1 per annum.
No complete sets of the BULLETIN for 1915, 1916, or 1917 are available.
in

TABLE OF CONTENTS.
Review of the month.
Business, finance, and industry, February, 1920: Summary
Special reports by Federal Reserve agents
Discount policy and credit control (extract from annual report of Federal Reserve Board)
Price control in England, France, and Italy
Address of Hon. R. McKenna before meeting of shareholders of the London Joint City and Midland B a n k . . . . .
Currency reform in India
Terms of sale in the principal industries
Official:
State banks and trust companies admitted to the system
Charters issued to national banks
Foreign branches of American banks
Fiduciary powers granted to national banks
Rulings of the Federal Reserve Board
•
Law Department:
Warehouse acceptances covering goods under contract for sale and delivery at a remote period
Limitation upon the aggregate rediscounts of the paper of one borrower made for different member banks..
Miscellaneous:
Practice of handling bills of exchange in foreign countries
Commercial failures reported
Statistical:
Wholesale prices abroad
Wholesale prices in the United States
Discount and interest rates prevailing in various centers
Physical volume of trade.
Debits to individual account, January and February
Gold settlement fund
Discount and open-market operations of the Federal Reserve Banks
Operation of the Federal Reserve clearing system
Growth of the Federal Reserve clearing system
Resources and liabilities of the Federal Reserve Banks
Federal Reserve note account
Condition of member banks in selected cities
Imports and exports of gold and silver
Estimated stock of money in the United States
Abstract of condition reports of State bank and trust company members on November 17, 1919
Condition of principal European banks of issue, 1913-1919
Discount rates approved by the Federal Reserve Board
Diagrams:
Growth of the Federal Reserve interdistrict clearing system
Par point map




IV

213
220
231
239
243
247
253
258
273
274
272
274
276
277
278
269
274
279
282
286
288
297
300
303
308
310
313
317
319
325
327
329
334
328
312
308

FEDERAL RESERVE

No. 3

MARCH, 1920.

VOL. 6
REVIEW OF THE MONTH.

The most marked feature of financial developments during the month of
Treasury finance..
February in their public aspects
has been the progressive withdrawal of the
Treasury Department from the domestic credit
market. Total receipts of the month, exclusive of transactions in the public debt, aggregated $229,527,341, of which amount $49,276,050 represents receipts on account of income and profits taxes, while expenditures on
the same basis aggregated $295,457,434, leaving a net current deficit for the month of
$65,930,093.
Comparative statements of the public debt
on August 30, 1919,'when the debt reached its
peak, and February 29, 1920, on the basis of
daily Treasury statements, show a decrease,
principally from salvage and taxes, in the
floating debt of about $900,000,000 and in the
total debt of about $1,192,000,000 in the last
six months.
The last issue of the Treasury's loan certificates of indebtedness matured on February 16
and was accordingly redeemed. The retirement of these certificates left the Treasury with
no floating debt represented by outstanding
short-term certificates requiring to be refunded.
Tax certificates, anticipating income and excess
profits returns to the extent of $2,935,949,500,
are still outstanding, about $850,000,000 of
these issues falling due on March 15. The
remaining certificates, however, mature on
installment dates for the payment of income
and profits taxes, and the amounts of the
various maturities in no instance exceed the
estimated amounts of the taxes payable on
the installment dates. The tax installments
which have thus been anticipated and which
are due during the calendar year 1920 are
payable in respect to the income and profits of




BULLETIN

the calendar year 1919, and consequently
would not be adversely affected should any
recession of business take place during the year
1920. Secretary of the Treasury Houston, in
commenting upon this situation, noted in a
statement issued on February 3 that "although
the Treasury will of course be obliged to borrow
from time to time to meet the current deficit
[which in February amounted to less than
$66,000,000], the fact that the Treasury has
no uncovered maturities is of immense importance/'
The reason why the Treasury's position with
reference to the certificate situThe Treasury
afaon is oi so much importance
d th B
d
from the credit standpoint is
found in the fact that so long as large volumes
of certificates were maturing on dates when it
could meet them only by fresh borrowing, the
department might at any time have found
difficulty in refunding. In such circumstances,
it was of course unavoidable that discount rates
should be largely controlled by rates established primarily with a view to public borrowing. Secretary Houston, in this connection,
points out that as a result of the conditions thus
referred to "it was consequently impossible for
the Federal Reserve Board to exert any effective control over credit." A similar situation
was recently described in the address by the
Right Hon. R. McKenna before the shareholders of the London City and Midland Bank.
In discussing the relationship between the
Government and the banking system, Mr.
McKenna then said:
"The Government has been a heavy borrower, and still may be, whatever the bank
rate. Raising the rate depreciates all existing
Government securities, which makes it difficult
to borrow from the public. As a result the
Government is driven to the Bank of England.
We know the consequences; the total of
deposits and bank cash is increased, prices
213

214

FEDERAL RESERVE BULLETIN.

;o up, and the currency is further inflated.
" e purpose of raising the bank rate is to
prevent borrowing by making it too expensive,
and by this means to restrict deposits and the
issue of currency; but when the borrower is a
Government which may have to borrow, no
matter what the price, and which has the
power to compel the Bank of England to lend,
raising the rate not merely fails to achieve its
intended purpose, but actually operates in
the opposite way. Until the Government has
ceased to borrow, the bank rate can not have
its normal effect. It must be observed, moreover, that these considerations apply with
equal force when the borrowing by the Government from the Bank of England is not to raise
new money, but to pay off maturing debt held
by the public or the banks, and not renewed
by them."
What has happened in the United States
with reference to bank rates and the control
of credit as noted by the Secretary of the
Treasury is thus parallel to the situation which
has existed in Great Britain. The improvement which has taken place in our own finances
opens the way to a more effective use of the
rediscount rate as a means of credit regulation.
From the standpoint of the general investing
public, the fact that the Treasury of the United
States is no longer in the position of a borrower
is of importance for the general welfare of the
country but incidentally, as well, to the holders of Liberty bonds and Victory notes, since
the danger of the Treasury's being obliged to
borrow large sums to meet maturing certificates upon disadvantageous terms has been
eliminated. The position of the Treasury today and the future of the market for the outstanding issues of Liberty bonds and Victory
notes is very bright. The whole color of the
picture would, of course, be changed if Congress should embark upon new expenditures on
a large scale. The problem to-day is that of
giving the people time and will to save capital
sufficient to enable them to absorb that part
<*f the war issues which is still owned or loaned
upon by banks as well as the securities which
are being pressed upon our markets from foreign sources in consequence of the extreme depression in European exchanges.




MARCH, 1920.

The public credit situation in foreign countries has not shown the same
situation
' improvement which has been
noted in the United States.
While some progress has been made in the
direction of restoring budgetary equilibrium
in certain of the belligerent countries, and
while there has been a distinct improvement in
the production and exportation of staples, the
gradual withdrawal of the credit which has been
extended by the United States in such large
measure places upon the European countries in
an increasing degree the responsibility for the
readjustment of their own affairs. European
Governments have maintained, since the cessation of hostilities, embargoes upon the export
of gold. The rectification of the exchanges
now adverse to Europe lies primarily in the
hands of European Governments. The normal
method of meeting an adverse international
balance is to ship gold. A refusal to ship gold
prevents the rectification or stabilization of an
adverse exchange. The need of gold embargoes for these countries lies in the expanded
currency and credit structure of Europe. Relief would be found in disarmament, resumption of industrial life and activity, the imposition of adequate taxes, and the issue of adequate domestic loans. It is probably not generally realized that during the past year in various ways the Government of the United
States has made available to European countries something like $4,000,000,000, or since the
armistice considerably more than that. The
amounts thus extended have been officially
computed as follows:
Direct advances
' $2,380,891,179. 65
Funds made available to those Governments through the purchase of
their currencies to cover our expenditures in Europe
736,481, 586. 76
Army and other governmental supplies sold on credit (approximately).
685,000,000.00
Relief (approximately)
100,000,000.00
Unpaid accrued interest up to Jan. 1,
1920, on allied government obligations
324,211, 922. 00
Total

4, 226, 584, 688. 41

MARCH, 1920.

FEDERAL RESERVE BULLETIN.

Secretary Glass, in commenting upon the
condition abroad in a statement made public
on January 28 as a letter addressed to Homer
L. Ferguson, president of the Chamber of Commerce of the United States, says with reference
to the policy of our own Government that—
" I t can not undertake to finance the requirements of Europe because it can not shape
the fiscal policies of the Governments of
Europe. The Government of the United States
can not tax the American people to meet the
deficiencies arising from the failure of the Governments of Europe to balance their budgets,
nor can the Government of the United States
tax the American people to subsidize the business of our exporters. It can not do so by
direct measures of taxation nor can it look
with composure upon the manufacture of bank
credit to finance our exports when the requirements of Europe are for working capital rather
than for bank credit."
The position of the Treasury Department
under Secretary Houston, as has already been
made plain, is identical with that adopted by
Mr. Glass. It is further of much interest to
note that following closely upon the latest announcements of the attitude of the Government of the United States, expressions have
been made public by British authorities, both
in the United States and in London, to the
effect that British governmental policy is
opposed to obtaining further loans in the
United States and is favorable to the restoration of a normal balance of trade as rapidly as
conditions will allow.
These views as to the further increase of
governmental international inlief
debtedness for the future in
in no way alter the announced
policy of the Government with respect to the
two branches of credit extension to which
assent has already been given—the proposed
arrangement for funding the interest upon
already existing debt and the extension of
direct relief to the peoples of Europe who are
in a condition of want or destitution. With
reference to the first phase of the problem,
testimony was furnished by Assistant Secretary
of the Treasury Davis on Friday, February 13,
before the committee of the House of Repre-




215

sentatives which has had under advisement a
bill to provide for definitely funding the interest obligations of the European countries.
The plan before the committee contemplates
the issuance of further bonds to represent the
recurring interest payments, such bonds to be
accepted in lieu of the interest for a period of
three years, and further a release of the foreign countries from the interest upon the bonds
thus given in lieu of interest settlements for
a period of years. This is in line with the
program developed by Secretary Glass in discussion with the representatives of foreign
nations during the summer, and by him brought
to the committee of Congress at the opening of
the present session, as indicated in his annual
report in which he said that—
"The Treasury is considering with representatives of the Governments of the Allies
the funding of the demand obligations which
the United States holds into long-time obligations and at the same time the funding during
the reconstruction period or, say, for a period
of two or three years, of the interest on the
obligations of foreign Governments acquired by
the United States under the Liberty loan acts."
The progress of the second phase of the plan
suggested by the Treasury Department for the
relief of European nations—the appropriation
of a sum of $150,000,000 for the actual furnishing of necessities—has been slow. A bill to
authorize the use of funds for this purpose is
still under advisement, but the expectation is,
however, that definite action on this side of
the relief proposal will be obtained in the near
future—action which would result in rendering
it possible to carry out the suggestions made
by Mr. Herbert Hoover in the statement made
public by him on January 6, in which he
formulated the problem as that of helping out
with the bread supply of about 5 per cent of
the population of Europe through the shipment
of foodstuffs and other necessities to the distressed districts.
The carrying out of the program for dealing
with the European situation
f 6X t h u s o u t l i n e d
° "
necessarily involves some suffering. Not the
least difficult element in the change of attitude

216

FEDERAL RESERVE BULLETIN.

which is necessitated by the new point of view
is of a psychological nature. As Mr. Hoover
has expressed it, " the world needs to get away
from the notion of governmental help, both internally and externally, and get back to work
and business." It has not, however, been able
to accomplish this desirable object thus far,
and it is the recognition that such a transition
must be made at an early date which has brought
about renewed demoralization of exchange
conditions during the past few weeks. The decline in exchanges, upon which comment has
already been offered in the December and
January issues of the BULLETIN, has continued
during the month of February, demand sterling
having reached a record low point ofF$3.18
early in the month, while other European exchanges were, relatively speaking, even weaker.
The following tabular statement of exchange
conditions continues that already furnished in
previous issues of the BULLETIN and indicates
the extreme disorganization which set in early
in the month, as a result of lack of further
credit to finance exports of goods and recognition on the part of the public that even
present obligations incurred by European
debtors in ordinary trade would not be easy to
provide for.
Foreign exchange rates.
Fel ). 7.

Feb. 14.

High.

Low.

High.

Low.

3.49J
13.44
16.08
17.95
43.12J
99.50
163.00
48.75

3.19
15.15
19.72
17.00
43.00
97.00
161.00
48.00

3.43
13.92
17.62
17.60
43.25
106.25
167.00
48.62^

3.35*
14.55
18.77
17.45
43.12*
102.00
159.00
48.25

MARCH, 1920.

The very great reduction in the buying
power of the European currencies which has
thus brought some of them almost to the vanishing point in international trade, marks being
worth at their low point little more than a
cent each, with Austrian crowns still lower,
has been due not merely to the adverse balance
of trade but to bad banking and currency conditions abroad. Were it the result solely of
unfavorable trade balances it would have
made itself manifest only in connection with
international business. The foreign currencies would, in other words, have retained in
large measure their original buying power at
home. This, however, has not been the case,
but there has been a continued depreciation of
paper currency in most of the European
countries as compared with gold from the
domestic standpoint. The situation is well
illustrated in the gold premium which has been
found to exist in London. That premium reduced to a basis of percentages may be stated
as varying from 50 per cent on January 31 to
43.9 per cent at the end of February. Another way of testing the actual situation
abroad is furnished by the course of prices in
those countries. This price development may
be illustrated for a few of the principal nations
by a tabulation of index numbers as follows:
Index numbers of wholesale prices.
• (1913=100.)

England
France. .
Italy.
Spain
TTonglcon g
China (Shanghai)
Japan

... .

United
Kingdom
(Statist).

France
(Bulletin
de la Statistique

Italy (Prof.
Bachi).

G6"n<3rale).

1919.

Fell .21.

England
France
Italy .
Spam
Argentina
Hongkong
China (Shanghai)
Japan




F e b .28.

High.

Low.

High.

Low.

3.47£
13.22
17.65
17.52
43.25
98.50
149.00
48.125

3.35i
14.38
18.30
17.20
43.125
97.00
147.00
48.00

3.41$
14.12
18.14
17.40
43.75
97.00
147.00
48.00

3.354
14.34
18.38
17.30
43.50
96.00
143.00
47.75

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

224
220
217
217
229
235
243
250
253
264
272
276

348
340
337
332
325
329
349
347
360
382
405
417

288

487

1920.
January

323
326
330
337
355
359
367
369
387
435
456

MARCH, 1920.

FEDERAL RESERVE BULLETIN.

From our own standpoint the arrival of a
turn in the tide of trade beicanhexportsfm6r" t w e e n t h i s country and Europe
has been indicated by the long
expected decline in the movement of goods
abroad. Figures reported by the Department
of Commerce for our export trade, it is true,
show for January an advance of $49,000,000
over December. The real situation is not, however, reflected in these gross figures for the
period ending with January, but is, in the opinion of exporters and importers, undergoing a
rapid change. In several important lines, such
as meat products, the falling off is already
authoritatively noted. The decline in shipments of merchandise thus indicated has had
its direct effect in a reduced activity of, and
demand for, ocean tonnage. This reduction in
activity has led to some curtailment in freight
charges, while there has also been a beginning
of transference of tonnage from the Atlantic to
the Pacific coast and from the east and west
Atlantic line to some of the routes between the
United States and South America. Coupled
with this change in export movements and
tonnage conditions has been a certain congestion of goods in warehouse or storage, owners
determining not to continue shipments abroad
in view of the unfavorable quotations of foreign
currency and the difficulty of financing the
products which they had been in the habit of
shipping. A natural consequence of this tendency to retain goods at home has been a curtailment of certain classes of prices. The
reduction is thus far only sporadic, but unmistakable symptoms of it have already been
noted in various commodities. Such reductions have been aided by the fear on the part
of some that embargoes would be established
in Great Britain and perhaps in other countries
against the importation of American goods with
a view to restricting the further growth of unfavorable exchange quotations.
Quite as powerful as the influence of unfavorable exchange quotations,
°f e X " a n d directly associated with the
latter, has been the tendency of
American banks and banking houses during the
month of February to limit the accommodation




217

which they had been lending in financing the
movement of goods to other countries. In
several different ways this growing disinclination
on the part of the banks to become responsible
for export conditions has been exhibited. Early
in February various banks in New York and
elsewhere indicated to customers an indisposition to discount bills drawn in dollars and
growing out of trade with Europe. Up to that
time there had been a fairly responsive attitude
on the part of American banks in taking on
business which involved the carrying of exchange risks by foreign banks, but with the
decline of exchanges came an increasing recognition that foreign bankers might easily get
into a position in which they would find it
difficult or impossible to meet the obligations
incurred by them, should our export movement
continue heavy. This refusal to discount bills,
even when stated in dollars, except in unusual
circumstances, has naturally tended to curtail
the support rendered by the banks in the foreign
trade. A further step which has been markedly influential has been seen in the fact that
business houses, which had been accumulating
large balances abroad and which had been accommodated by American banks to the extent
of a.substantial proportion of the current exchange value of such balances, have found it
much more difficult to obtain accommodation
upon this sort of security. Bankers have recognized that the continued large extensions of
such a kind would inevitably result in a situation in which the collateral might become inadequate, while the borrower would be in no position either to take it up or to furnish additional
protection. Finally, the attitude of the banking community has been increasingly adverse
to loans secured by products stored in foreign
countries and awaiting sale. Immediately
after the armistice there was a considerable exportation of goods on consignment account to
various foreign points because of the belief that
the great shortage of goods in Europe would
create a profitable market for whatever we
might be able to export and that those who
could actually offer the goods when wanted
would be able to control the trade. In view of
the fact that Europe's buying power was much

218

FEDERAL RESERVE

BULLETIN.

MARCH, 1920.

Proposals put forward in France during the
past few weeks for the increase of taxation in
that country afford encouragement with reference to the development of French economic
policy in its application to banking, while those
in process of development in Italy are still
more positive. Coincident with the development of these proposals has been the reply by
the authorities of the British exchequer to the
international exchange memorial filed with it
by influential men who presented the memorial
to the British Government at the same time
that it was handed to our own Treasury authorities. The policy of the exchequer as outlined in this answer points strongly to the systematic pursuit of sound methods of finance, the
continued assessment of taxation, and the reduction of public indebtedness as rapidly as
possible. The difficulties of the situation, however, are great, and it will evidently be some
time before genuine improvement can be assured. Meanwhile, a disquieting factor in the
situation is the steady increase of prices abroad,
to which reference has already been made in
another connection, and which seems to indicate the growth of inflation.
One criterion of the progress of economic reCentral bank deposits, total note circulation, and gold recovery in foreign countries is
serves in Great Britain, France, and Italy.
seen in their relationships with
[In millions of dollars.]
one another. Of these perhaps
the most available tests are furnished by the
Italv.
Great Britain. Bank of France.
figures showing exporting power and exchange
End of month.
quotations. In the following brief comparison
is presented data showing the capacity of Great
Britain, France, and Italy to export, as tested
1919.
by their aggregate shipments abroad.
6,173
1,834
2,628
January

less vigorous than had been predicted by many
it has been necessary to carry considerable
quantities of these goods for periods of some
length and they have been in many cases
financed by American banks. A disposition
to discontinue this type of financing necessarily
tends not only to bring about the sale of these
goods abroad and hence to forestall further
exportations from the United States but is also
proving a very discouraging factor in connection
with exportations from this country which
might otherwise have occurred.
An essential element in the rectification of
these conditions will be found
k m the reform or
"
modification of
the foreign banking situation.
There is thus far but too little reason to look
forward to an immediate improvement. Reserves at the Bank of England have shown
some improvement, although it has been sporadic and uncertain. The following figures illustrate the gradual development of conditions
in leading foreign countries, reserves being contrasted with the amounts of deposits in central banks and total notes outstanding:

June
July
August
September
October
November
December

1.874
1,955
2,071
2,051
2,047
2,035
» 1,999
9 2,009
9 2,040
9 2,057
9 2,168

1920.
January

756 9 2,014

February
March./.
April

y

1
2

6,314
6,441
6,558
6,574
6,647
6,760
6,772
6,907
7,136
7,223
7,194
625

615 7,253

2,613
2,684
2,799
2,749
2,809
2,925
2,987
3,157

744

Exports of United Kingdom, France, and Italy during 1919.
[In millions of dollars at gold parity.]
1919

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

United
Kingdom. France.
253
253
302
350
369
372
375
438
400
480
523
570

58
56
79
68
83
92
119

Italv.
44
51
60
59
72

Public and other deposits.
Currency and Bank of England notes.
134
110
3 Including $138,695,000 held by the exchequer.
139
124
4
Includes Government and other deposits.
134
& Exclusive of gold held abroad.
6
Includes deposits of the three banks of issue, viz: The Bank of Italy,
the7 Bank of Naples, and the Bank of Sicily.
NOTE.—Figures for United Kingdom include domestic and foreign
Includes notes of the three banks of issue, and of the Treasury.
products. Figures for France and Italy include domestic products only.
*9 Includes reserves of the three banks of issue, and of the Treasury.
Exclusive of Bank of England notes held by the exchequer as reserve Figures for Italy include silver bullion. Money conversions are made at
normal parity.
against currency notes outstanding.




MARCH, 1920.

FEDERAL RESERVE BULLETIN.

219

Foreign exchange relationships between these With South American countries:
Argentina
-f43
countries may be best studied by considering
Brazil
+ 119
the variation of the pound sterling from normal
With the showing as to merchandise there
in the French and Italian markets and of the
may also to advantage be compared the figures
franc and lira in the British market.
showing the movement of gold which have
Exchange rates on United Kingdom, France, and Italy.
been presented in a separate column:
End of month.*

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

1919.

London London Paris on Italy on
Oil..13 . London.
on Paris. on Ita
Francs
per £.
25.98|
25.98
27.40
28.22
29.85
29.85
31.02
33.87$
35-45
36.22£
39.35
40.05

Liras
per £.
30.311
30.311
37.00
34.75
39.50
36. 80
37.65
40.85
41.10
43.37J
4900
49.12J

Francs
per £.

29.40
29.71$
31.42^
33.97J
34.70
36.05
39.26
40.02J

Liras
per £.
30.311
30.311
33.50
35.20
37.95
36.87$
37.69$
40.75
41.20
43.07£
49.00
49.37$

46.25
49 90

54 75
67.15

46.32$
49.90

54.05
67.15

25.98$

25.97f

27.62*
28.37J

1920.

1
London quotations are cable averages for Thursday of last week of
the month as quoted by the London Economist. Foreign quotations on
London are averages for date quoted by the Economist for the last week
of the month. Paris quotations are for checks, Italian sight.
2 February quotations furnished by Guaranty Trust Co., New York
City.

The one-sided character of our export trade
Our one-sided is illustrated by the difference
export trade.
i n ^ e exchange situation growing out of our relations to Europe on the one
hand and our relations to the Orient and South
America on the other. This difference in
situation may best be illustrated by the following brief table furnishing a review of the position of selected countries during 1919, those
which have a net export balance in our favor
being indicated by the minus sign, while those
which have shipped us more goods than we
have sent them and with which our export
balance is therefore unfavorable being indicated
by the plus sign.
United States trade balance, 1919.
[In millions of dollars.]
With European countries:
United Kingdom
France
Italy
Netherlands
With oriental countries:
British East Indies
Japan
China




-1,970
770
384
180

:....

241
43
49

United States movement of gold, 1919.
[In millions of dollars.]
European countries:
United Kingdom and Canada
France
Oriental countries: .
British India
Japan
China
Hongkong
South American countries:
Argentina
Venezuela
Mexico

+40. 7
— 4.1
-34. 3
—94.1
-39.1
-30.1
—56. 5
—11. 7
— 5. 9

The latest returns covering the month of
January seem to indicate a continuance of
the tendencies thus exhibited by the complete figures for the year 1919. I t is not
to be expected that the volume of our gold
exports should correspond to the trade balance
between ourselves and any given country,
even if the "invisible balance7' be left out of
account. This invisible balance representing
services, interest payments, and the like, is
itself an important factor in the situation.
The lack of correspondence in exports and
imports is a frequent phenomenon in foreign
exchange, and grows out of the fact that a
third country may be in debt to the nation
to which we are sending gold and may have
drawn upon us under credits established here
for the purpose of paying its debts through
gold exportations. Conditions of this kind
are especially likely to occur under present
circumstances, due to the fact that the United
States being practically the only free gold
market in the world, many transfers and shifts
of balances and cash are often made for the
purpose of effecting international settlements,
while the United States and its banks are
employed as a base for these operations. A
conspicuous example of the kind is seen in
the rapid reduction of the balances carried

220

FEDERAL RESERVE BULLETIN.

by foreign banks with American institutions.
These balances had grown during the war to
very large proportions, but since the armistice
they have in many cases declined sharply,
funds being used for the purpose of settlement
of obligations and of purchasing commodities
here, but partly also for the adjustment of
obligations in other countries which had
become pressing. There are thus factors
growing out of the international situation
to-day which are not solely due to the onesided character of our balance of trade,
although that affords the basis for it. The
continuance of a condition in which we
export substantially, even if not enormously,
to Europe, but receive little from her, while
we draw our imports from other countries,
yet are not able to pay for them in goods,
must necessarily lead to a continuous drain on
our stock of accumulated gold.
In an analysis of the gold situation recently
issued by a New York banking institution,
it is pointed out that "aside from the obvious
geographical distribution of the countries
[receiving gold from us]—all, except Spain,
either in the Orient or in South America—
it is clear at the first glance that all these
nations are essentially providers of raw materials for the remainder of the world. If we
consider our trade balances with these countries during 1919, so far as they have come to
hand, we find that in most cases there was a
considerable excess of imports into the United
States over our exports to them."
It is also noted that "our net exports of
silver during 1919, meanwhile, were unimportant, save to four nations. In these
cases the figures, in millions, were: British
India, 109.2; China, 77.6; England, 15.6;
Hongkong, 10.2."
Notwithstanding the restoration of more
normal conditions in some lines
Reserve
per
"
of industry, there has been but
centages.
little change in the banking outlook. The reserve percentages of the Federal




MARCH. 1920.

Reserve System as a whole have shown a distinct tendency toward decrease. This is exhibited as follows:
Jan. 23
Jan. 30
Feb. 6
Feb. 13
Feb. 20
Feb. 27

44. 8
44, 5
44.1
43. 2
42. 7
42. 5

This decrease is only partly due to continued
maintenance of the demand for credit and must
be partly ascribed to the continuous demand
for gold for export. On this subject the Board
in its annual report, issued on February 23,
says:
The combined reserves of the 12 Federal Reserve Banks
on January 3,1919, amounted to 51.3 per cent of their liability for deposits and note issues. Due partly to the gold
embargo, this percentage was well maintained during all
the period of uncertainty which preceded the flotation ef
the Victory loan and for some time thereafter, for not until
July 9, after the gold embargo had been removed, did the
reserves fall even fractionally below 50 per cent. On Sep»
tember 26 the reserves stood at 51 per cent, after which date
they show a steady and continuous decline to 44.8 per cent
on December 26.
Although the period of war financing did not terminate
with the year 1918 and the Federal Reserve System waa
consequently under the continued strain of war finance,
that strain had to be met without the aid of war restrictions.
The safeguards afforded by these restrictions were removed, for it was impracticable to continue them in time
of peace. There is no longer an embargo on exports of
gold nor any regulation or control of foreign exchange,
with the trifling exceptions already noted; the controls
set up over exports and imports, production and consumption, with a view of conserving the national resources and
reducing waste, have practically disappeared. As a result
the problems of the Federal Reserve System'have been
greatly increased, more particularly the problem of controlling credit.

The following figures, in continuation of those
furnished in the last issue of the] BULLETIN,
render possible a study of the development of
the portfolios ofjthe member banks and hence
make it feasible to draw somejconclusions concerning the actual working of present methods
of credit limitation as independent of tbf gold
export situation.

[In millions of dollars.]

Date.

Number
of banks
reporting.

1920.
Jan.2
Jan. 9
Jan. 16
Jan. 23
Jan. 3 0 . . . . . . . . .
Feb. 6
Feb. 13
Feb. 20
Feb. 27

798
802
803
804
804
804
805
806
805

Loans
Rediscounts
(including
and bills
Net demand
rediscounts)
payable
deposits.
and investwith
ments (inFederal
cluding U . S .
Reserve
securities).
Banks.

16,753
16,868
16,852
16,841
16,762
16,758
16,826
16,762
16,849

1,870
1,729
1,757
1,824
1,834
1,895
1,988
2,057
2,143

11,609
11,549
11,740
11,536
11,477
11,478
11,604
11,417
11,457

t

During the month ending February 10 the
net outward movement of gold

wSSUSi'*'"™*

tina, $51,354,000 to Hongkong, $48,412,000 to
China, $35,506,000 to British India, and $29,778,000 to Spain, the remainder being shipped principally to Mexico, Uruguay, Dutch
East Indies, the Straits Settlements, and Venezuela.
During the same monthly period the net outward movement of silver was $14,632,000, as
compared with a net outward movement of
$8,138,000 for the month ending January 10.
Net exports of silver since August 1, 1914, were
$447,374,000, as may be seen from the following exhibit:
[In thousands of dollars.]

$38,117,000, as compared

with a net outward movement
of $26,553,000 for the month ending January
10. Net imports of gold since August 1, 1914,
were $727,402,000, as may be seen from the
following exhibit:

Aug. 1 to Dec. 31,1914.
Jan. 1 to Dec. 31,1915..
Jan. 1 to Dec. 31,1916..
Jan. 1 to Dec. 31,1917..
Jan. 1 to Dec. 31,1918..
Jan. 1 to Dec. 31,1919..
Jan. 1 to Feb. 10,1920..
Total

Imports.

Aug. 1 to Dec. 31,1914
Jan. 1 to Dec. 31,1915
Jan. 1 to Dec. 31,1916
Jan. 1 to Dec. 31,1917
Jan. 1 to Dec. 31,1918
Jan. 1 to Dec. 31,1919
Jan. 1 to Feb. 10,1920
Total
1

Exports.

Excess of
imports
over
exports.

23,253
| 451,955
1 685,745
| 553,713
!
61,950
j
76,534
!
12,304

104,972
31,426
155,793
372,171
40,848
368,185
64,657

181,719
420,529
529,952
181,542
21,102
1
291,651
1
52,353

1,865,454

1,138,052

727,402

Excess of exports over imports.

Over 93 per cent of the $11,812,000 of gold
imported during the monthly period ending
February 10 was received from Canada; Mexico
and New Zealand furnishing most of the remainder. Of the gold exports, amounting to
$49,929,000, over one-half, or $25,050,000,
was consigned to Argentina, $8,811,000 to
Hongkong, $3,367,000 to China, and $4,000,000
to Mexico, the remainder going principally to
the Straits Settlements, Japan, Dutch East
Indies, and Uruguay. Since the removal of
the gold embargo on June 7, 1919, total gold
exports have amounted to approximately
$418,450,000. Of this total, about $99,820,000
were shipped to Japan, $81,610,000 to Argen-

Exports.

Excess of
exports
over
imports.

12,129
34,484
32,263
53,340
71,376
89,410
12,124

22,182
53,599
70,595
84,131
252,846
239,021
30,126

10,053
19,115
38,332
30,791
181,470
149,611
18,002

305,126

752,500

447,374

Imports.

[In thousands of dollars.]




221

FEDERAL RESERVE BULLETIN.

MARCH, 1920.

Mexico furnished almost three-fourths of
the $7,788,000 of silver imported during the
monthly period ending February 10, while most
of the remainder came from Peru and Canada.
Of the silver exports, amounting to $22,420,000,
$16,745,000 were consigned to China, $2,551,000 to Hongkong, and $2,321,000 to Canada, the remainder going to Mexico, Panama,
England, and Honduras.
The effects of the higher discount rates
applied by the Federal Reserve
S stem have
y
*">t 7«* ^ad opportunity to make themselves
fully felt. In some parts of the country very
direct results are recorded as having been
experienced, while in other parts of the
country the situation is not so obvious. The
Federal Reserve Bank of New York, in analyzing the situation, says:
The contraction of bank credit which has taken place in
this district, particularly in New York City, has not had
its counterpart in the country as a whole. In the four
weeks ended February 13, the 71 banks in New York City
which report weekly to the Federal Reserve Board reduced
their loans $178,000,000. The 733 reporting banks else-

222

FEDERAL RESERVE BULLETIN.

where in the United States, however, increased their loans
in the same four weeks' period $67,000,000, thereby
partially offsetting the decrease made in New York City.
The reduction of loans on stocks and bonds in so far as any
has been made has taken place in this district. Thus,
while New York City banks were reducing such loans
$130,000,000, banks elsewhere kept them on the average
almost stationary from a month ago.
Bank deposits in this district declined rapidly, thereby
continuing the movement, unusual for this time of year,
observed a month ago. The deposits of New York City
banks were $285,000,000 lower than on January 16. Of
that reduction $136,000,000 was in the single item of
Government deposits, which have been withdrawn
rapidly during the period. Elsewhere in the country,
despite the increase in loans, deposits have declined
$217,000,000, of which more than half was because of the
withdrawal of Government deposits. The following table
gives the important figures:
[In millions.]
banks,
71 reporting banks 8055 reporting
report
in New York City.
all disiitricts.1
Date.

Feb. 13,1920
Feb. 6,1920.
Jan. 30,1920..
Jan. 23,1920..
Jan. 16,1920..
Jan. 2,1920...
Oct. 10,1919..
Jan. 3,1919...

Total
Total
I loans and Total loans and Total
invest- deposits. invest- deposits.
ments.
ments.
$5,341
5,424
5,479
5,487
5,519
5,595
5,850
5,153

$5,017
5,065
5,117
5,147
5,292
5,401
5,397
4,763

$15,715
15,814
15,844
15,866
15,826
15,792
15,476
13,697

$14,108
14,178
14,258
14,326
14,600
14,572
13,699
12,071

1
The number of reporting banks throughout the country increased
from 757 on Jan. 3, 1919, to 805 on Feb. 13,1920. In the same time the
eporting banks ia this district increased from 65 to 71.

Largely as the result of considerable redemptions of Treasury loan certifiates
> aggregate holdings of
Government war securities reported by over 800 member banks in leading
cities show a decrease of about 162 millions
between January 16 and February 13. During
the same period the amount of war paper
carried by these banks (less rediscounts) fell
off about 80 millions. There is also shown substantial contraction of loans secured by stocks
and bonds, though liquidation under this head
is practically limited to New York banks. On
the other hand, all other loans and investments,
exclusive of rediscounts, composed mainly of
ordinary commercial loans, increased during
the period by about 187.2 millions. The net
result of these changes is seen in a decrease of




MARCH,

1920.

191.8 millions in total loans and investments
(less rediscounts). During the same period
collateral loans of reporting banks held by
Federal Reserve Banks increased 164.2 millions, so that the margin between the loans and
investments of the reporting banks and their
borrowings from the Federal Reserve Banks
shows a decrease of 356 millions. Government,
as well as other demand deposits (net), show
considerable declines, the former by 266.3 millions and the latter by 189.3 millions, these reductions apparently accounting largely for the
decline of 75.6 millions in the banks' reserve
balances with the Federal Reserve Banks.
Data for the Federal Reserve Banks covering
the period between January 23 and February
20 indicate considerable increases in loan and
note issue operations. Holdings of paper
secured by Treasury certificates show an increase for the period of over 60 millions,
notwithstanding the considerable reduction in
the volume of outstanding certificates effected
during the period. Holdings of paper secured
by Liberty bonds and Victory notes increased
78.7 millions following the restoration of a
differential of one-half per cent in favor of this
class of paper as against ordinary commercial
paper, the holdings of which increased by
66.2 millions.
For the four weeks under review the total
discounts of the Federal Reserve Banks are
thus seen to have increased by about 205
millions, totaling on the closing date of the
period 2,358.5 millions, of which about 65 per
cent was war paper. Apparently as the result
of the differential treatment of war paper the
average maturity of bills held by the Federal
Reserve Banks shows a considerable decrease
through a substantial decline of 90-day paper
on the one hand and a more than corresponding gain in the holdings of 15 and 60 day
paper. Following the adoption by the Federal
Reserve Banks of a special 5 per cent discount
rate the holdings of acceptances purchased in
open market declined from 575.8 to 531.7
millions. During the same period the New
York and Philadelphia banks increased their
rediscounts with other Federal Reserve Banks

MARCH,

1920.

FEDERAL RESERVE BULLETIN.

from 75.4 to 93.9 millions. On the other hand,
holdings by other Federal Reserve Banks of
acceptances sold by the New York and Boston
Reserve Banks declined from 48.7 to 30.4
millions.
As the result of moderate decreases in both
members' reserve and Government deposits,
the Federal Reserve Banks' deposit liabilities
show a decline from 1,817.8 to 1,785.8 millions.
On the other hand, Federal Reserve note circulation expanded during the period from
2,844.2 to 2,977.1 millions, or at an average
weekly rate of 33.2 millions, while gold reserves,
mainly in consequence of export withdrawals,
show a further reduction of 56.8 millions. The
combined result of these changes is seen in the
continuous decline of the banks' reserve ratio
from 44.8 to 42.7 per cent.
Very low price levels for investment securiChange in in- ^ e s n a Y e been noted during the
vestment condi- month. Rates for call money
tlons
'
have, however, owing to lack of
demand, continued during most of the month on
a decidedly more reasonable level than at any
time in the recent past, both the call and renewal rate being during a part of the time in the
neighborhood of 6 per cent4 although subject
to considerable fluctuation from time to time.
It has been inevitable that depression in unquestionably good investment securities should
occur as one consequence of the changes through
which the financial community has been
passing. A phase of this change in the investment outlook has been commented upon by
the Secretary of the Treasury as follows:
"The depression in high-grade investment
securities in this country at the present time
is to a very important extent the result of
heavy selling of such securities in our markets
from foreign sources * * *. By absorbing
these high-grade investment securities, the
American people are furnishing capital to
Europe at a time of Europe's need and are
giving this help in just the way that Europe
helped America in the period of America's
growth and of her own monetary troubles.
In the days of the infancy of the Republic, in
the days of our Civil War, and of the period
of reconstruction after the Civil War, of the
monetary panics which we suffered at frequent




223

intervals until the establishment of our Federal
Reserve System, America suffered greatly
for lack of capital and credit and because of
her depreciated currency, and, later, her
inelastic currency. In those days Europe came
to America's aid, not by Government loans,
not with any comprehensive plan, but by the
investment of private capital upon attractive
terms in American enterprises and in the purchase of American securities at bargain prices.
Europe profited enormously by these investments and America profited too, because she
obtained the capital she needed at the price
that the capital was worth to her. Honest and
energetic business men in both countries went
to wor,k in their own way and solved the
problem on business terms."
Brief mention has already been made of the
report of the Federal Reserve Board which was
issued to the public on* February 23. In the
report the Board has restated its policy with
respect to discount rates and credit along lines
already made familiar in the BULLETIN, but
which may be briefly reviewed as follows:
The normal and traditional method of credit
control has been the discount rate; its efficacy
however, presupposes normal conditions. An
advance in rate operates under normal conditions not only to diminish the demand for
credit by making certain activities unprofitable
but as well to increase the supply of credit by
attracting it from other centers or countries.
The conditions that make this traditional control effective do not all exist at the present
time. The United States stands almost alone
as an important free gold market. Other
countries are seeking and have obtained large
credits in the United States, as is evidenced
by the fact that our exports exceeded imports
during the year by about four billions of dollars
and we have paid our adverse balances in gold.
It should be recognized that credits extended
to Europe create a demand for commodities
that competes with the domestic demand and
this competition is one of the potent causes of
high prices. * * * The expansion of credit
set in motion by the war must be checked.
Credit must be brought under effective control
and its flow be once more regulated and
governed with careful regard to the economic
welfare of the country and the needs of its
producing industries. Deflation, however,
merely for the sake of deflation and a speedy
return to "normal"—deflation merely for the
sake of restoring security values and commodity

224

FEDEKAL RESERVE BULLETIN.

prices to their prewar levels without regard to
other consequences, would be an insensate
proceeding in the existing posture of national
and world affairs.
All these factors were brought to the attention of the meeting of the Federal Advisor
y Council at its
stated session on February 17.
The Council, after considering the general credit
outlook, made recommendations as to some
particular phases of it, to which brief reference
may be made. The view of the Council with
respect to the matter of rates on open-market
acceptances is thus stated: "The policy to be
pursued by Federal Reserve Banks should be
to leave the control of the open market for
such acceptances in the hands of member banks
and discount houses, so long as the former use
the special rediscount rate legitimately and do
not abuse it. The Federal Reserve Banks
should not therefore normally buy acceptances
in the open market below the current rates at




MARCH, 1920.

which the member banks and discount houses
are buying them. Should it become urgently
necessary to curtail rediscounts at the Federal
Reserve Banks, rates can be raised, and should
it be found that the preferred rate for bankers'
acceptances is being abused such discrimination in their favor should be discontinued/7
With reference to rates of interest in general,
the Council found that the action already taken
by the clearing-house banks in limiting the rate
of interest to be paid on bank balances to 2\ per
cent enables the Federal Reserve Banks to increase their discount rates without reference to
existing clearing-house rules regulating the payment of interest. No further steps are necessary or advisable looking to the regulation
of the rates of interest to be paid on deposits.
As to whether the present 6 per cent rate for
the rediscount of ninety-day paper is sufficiently high, the Council holds that experience
has thus far been insufficient for conclusive
opinion.

MARCH, 1920.

FEDERAL RESERVE BULLETIN.

225

BUSINESS, INDUSTRY, AND FINANCE DURING FEBRUARY, 192CL
While Federal Reserve agents in their reports
as to business conditions and the outlook for
trade forecast the continuance of an active demand for products, the situation in some districts is such as to raise questions and to lead
to predictions of possible reduction in business
activity and in prosperity. There is in many
sections of the country indication of some
alteration in outlook and a disposition on the
part of the consumer to use more care and
judgment in his purchases. No increase in
labor unrest is observable, but in some districts
a continuation of underproduction or limitation of production is encountered.
In district No. 1 (Boston) the Federal
Eeserve agent reports that "it seems clear not
only that commodities are finding their way to
the counters of the retail merchant with increasing facility, but that the shelves of the
latter are, in general, being stocked to capacity,
and merchants are buying more and more
cautiously from month to month, willing to
take chances which they would not risk a few
months ago on deliveries; and though they may
not yet have actually observed any appreciable falling off in the purchasing activities of
the public, they are becoming increasingly
conscious that the inevitable time of forced
retrenchment is approaching nearer and nearer."
In district No. 2 (New York) "shares on the
stock market have persistently declined and
a further contraction in the volume of trading
as compared with recent months has taken
place. There has been evidence also of waning
speculation in commodities. A further and
sensational fall in foreign exchanges brought
almost all the principal quotations to new low
levels, from which they have somewhat recov* ered." From district No. 3 (Philadelphia) it is
reported that there is a brisk demand for manufactures of all kinds but that the danger of further price advances is well recognized. "There
can not be any long continuation of price advances combined with increased purchasing, unless production can at the same time be made
larger,'' says the report. Foreign trade con-




ditions are making themselves felt' in a practical way, sundry prices weakening as a result
of the decline in sterling. In district No. 4
(Cleveland) the Federal Reserve agent, while
calling attention to the restriction of output
as a general evil, and while fearing the continuation of high prices as the result of underproduction, states that there is a beginning on
the part of employees to recognize that the
volume of production is a vital question. The
opinion is expressed that extravagant purchasing will continue for some time, although the
reports of dealers indicate an opposite view.
No ground for actual pessimism is to be noted.
In district No. 5 (Richmond) "the new year
has opened prosperously, with no indications
of any general business curtailment." There
is, however, a distrust of future prices and
retailers are showing a conservative tendency.
In district No. 6 (Atlanta) observations similar
to those reported from the Cleveland district
are presented. The need of increased production is recognized, and it is stated that "the
betterment of prevailing conditions rests largely
with the general public and especially with
labor." The outlook for agricultural development is good. In district No. 7 (Chicago) "it
is not surprising that the tone of replies to
inquiries concerning business conditions in the
Middle West should reflect more or less apprehension of a period of business depression."
This is said to be particularly noticeable in the
advices received from producing centers. In
district No. 8 (St. Louis) active business in
practically every line is reported, although
"during the past few weeks several disturbing
factors have tended to lessen its volume from
the high level of January." Possible price
reductions are foreseen and buyers are limiting
their purchases, yet there is "a feeling of
optimism" among most business men. The
buying power of the public shows "little diminution," In district No. 9 (Minneapolis) unfavorable transportation conditions have
tended to limit the activity of business, but the
agricultural outlook is good and sales of farm

226

FEDERAL RESERVE BULLETIN.

implements are active. Collections are satisfactory. In district No. 10 (Kansas City) "the
volume of mercantile trade in the month of
January was about 40 per cent greater in
amount of money than that of January, 1919,
and about the same in quantity of merchandise.'7 Some lines of business have declined
in activity, but building operations have
enormously increased and there is an effort to
pay off war indebtedness. In district No. 11
(Dallas) January business conditions " reflect
a moderate net gain as contrasted with the
situation a year ago. Agricultural prospects
are favorable, and the volume of mercantile
trade was slightly better than that of January,
1919. In district No. 12 (San Francisco) planting conditions are not as good as they should
be. There is much activity in business, unemployment is nominal, strikes are at a minimum,
and the prospects are good in spite of somewhat
unfavorable agricultural conditions.
Throughout practically all the reports runs
a recognition of the existence of an overstrained
condition of credit and of some continued tendency toward speculative operations, while high
living costs and the upward movement of prices
have apparently not been checked, notwithstanding the decrease in prices of some classes
of goods and a tendency toward restricted trade
in specified lines. Interest rates are high and
rising in most places, while banks are exercising
a greater degree of discrimination and judgment in complying with the demands of their
customers. February has witnessed a beginning of active preparations for the coming agricultural season, particularly in the South and
Southwest and on the Pacific coast. In district
No. 6 (Atlanta) preparation for the new crops
has been somewhat retarded by weather conditions and cotton acreage can not as yet be forecast with accuracy, although it will probably be
reduced as compared with last year. Small
grain has been somewhat damaged by wet
weather along the Atlantic coast. The fruit
and vegetable crop gathered during the past
few months has been very satisfactory, although
prices for some classes of fruit have been disappointing. In district No. 11 (Dallas) little win-




11)20.

ter plowing has been done and preparation for
the staple crops is three or four weeks behind.
The south Texas rice crop, which has just been
completed, is the most profitable ever grown.
Truck products are moving to market in large
volume and at good prices. In district No. 10
(Kansas City) conditions have been ideal for
work out-of-doors. The ground has been in
excellent condition for plowing and the weather
was favorable for winter grain crops. The corn
acreage will be largely in excess of last year.
In district No. 9 (Minneapolis) the season is
still too early to forecast conditions. On the
Pacific coast the germination of grains has been
slow, although in Oregon and Washington autumn wheat is wintering well. While the information is not yet sufficiently complete or
the season sufficiently far advanced to furnish
conclusive facts, the prospects are evidently
regarded as entirely favorable. Practically
throughout the country the problem of agricultural labor, both as to amount and cost,
is regarded as one of unprecedented difficulty.
The high wages offered in the cities have attracted many farm workers from the land, and
as a result decreased production in various
sections can scarcely be avoided.
Farm animals in most parts of the country
are reported as wintering in exceptionally good
condition. In Texas there was an increase of
836,000 head of live stock from 1918 to 1919.
The sheep industry in west Texas has the best
prospects ever known. In district No. 10
(Kansas City) live stock has been reported in
thriving condition with less disease among animals than for some time. There is a problem
in the northwest section of the district in restocking the ranges, but prospects are good for
a large crop during the current year. On farms
there has been a decrease in the number of animals available, amounting to about 7.1 percent
since January, 1919. Some falling off in sheep
has occurred in Colorado and Wyoming, but in
the eastern part of the district sheep have
increased from 2 to 10 per cent, the increase
being especially noticeable in Kansas. Declines are reported in the holdings of hogs.
On the Pacific coast, in spite of hay shortage

MARCH,

1920.

FEDERAL RESERVE BULLETIN.

227

and high prices for feed, cattle are wintering City steers were about $1.50 lower than a year
well, and the quantity of live stock on farms ago, while feeder cattle were $1.50 to $2.50
in the district is approximately the same as on lower. Lambs and calves maintained fairly
January 1, 1919. Receipts of cattle and calves high prices. Both in district No. 10 (Kansas
at 15 primary markets during January were re- City) and district No. 7 (Chicago) it is noted
ported as 1,400,031 head, corresponding to an in- that meat packing operations have been matedex number of 139, as compared with 1,650,315 rially slowed down on account of the export
head during December and 1,656,046 head situation.
during January, 1919, the respective index
Arrivals of wheat have been smaller both in
numbers being 164 and 164. Receipts of sheep district No. 10 (Kansas City) and district No.
during January were 1,035,591 head, as com- 9 (Minneapolis), as well as in district No. 7
pared with 1,079,377 head a year earlier and (Chicago). This has been partly due to diffi1,589,237 head during December, 1919, the culties of transportation. Inability to ship
respective index numbers being 76, 79, and 116. accumulated stocks from the elevators in the
Receipts of hogs show a change from 3,912,449 Northwest has prevented grain from moving.
head, corresponding to an index number of 178 In district No. 10 (Kansas City), although such
during January, 1920, to 4,603,335 head, corre- difficulties have been smaller, the arrivals of
sponding to an index number of 209, during wheat at principal markets were about 15
January, 1919, as compared with 3,785,870 per cent less than in December, but about
head, corresponding to an index number of 172, three times as great as in January, 1919.
during December. From Kansas City it is Much grain is now being held on the farms for
reported that January receipts of cattle, hogs, higher prices. Activity at the principal flour
and sheep at the six markets in that dis- milling centers has declined in district No. 10
trict were 523,742 head, 1,053,719 head, and (Kansas City) on account of the car shortage,
539,385 head, respectively. Stated in another while the same is true in district No. 9 (Minneway, arrivals at the six markets in district apolis) and elsewhere. Wheat flour producNo. 10 (Kansas City) in January were 37,006 tion in January, 1920, was, however, 13,005,000
cars, as compared with 37,694 cars in Decem- barrels, as against 10,593,000 barrels a year
ber and 44,134 cars in January, 1919. There earlier. This continues the upward movement
was a decline of 12.7 per cent in cattle in the output of flour already noted in the
receipts as compared with the December record February issue of the BULLETIN.
and of 14.9 per cent as compared with the reThe demand for iron and steel continues to
ceipts in January of last year, while 12.7 per be vigorous and many mills are sold up far
* cent more hogs arrived in January than in ahead. In district No. 4 (Cleveland) it is reDecember, but the January total fell 30 per ported that pig iron buying during the past
cent short of the receipts in January, 1919. four or five weeks has been in "tremendous
Fewer sheep came to the markets in January volume/7 and it is estimated by trade authorithan in December, but the January total was ties that total sales during that period exceeded
14.4 per cent larger than a year ago. In dis- 1,000,000 tons. Consumers have bought ahead
trict No. 7 (Chicago) it has been found that up to January 1, 1921. The advance in pig
receipts of live stock at the principal markets iron prices has ranged from $3 to $6 a ton. The
during January show a decrease of 19 per cent Lake Superior iron ore market for the season
as compared with the corresponding month of 1920 has opened at an advance of $1 a ton.
last year. Prices for cattle, beef, and mutton Predictions are now being made of a season's
declined compared with a year ago, while sheep movement of 60,000,000 tons. The unfilled
and young lamb increased in price. There was orders of the United States Steel Corporation
a falling off of 15 per cent in hog receipts and a for January were 9,285,441, corresponding to
decrease in the price of live hogs. In Kansas an index number of 176, while for January,




228

FEDERAL RESERVE BULLETIN.

1919, they were 6,684,268, corresponding to an
index number of 127. Pig iron production was
3,015,181 tons for January, as against 3,302,260
tons for January, 1919, the corresponding index
numbers being 130 and 143, respectively. In
district No. 3 (Philadelphia) demand for iron
and steel has been exceptionally heavy and
manufacturers were recently operating to capacity. Weather difficulties have lately retarded their production and fuel shortage has
been troublesome. Eastern Pennsylvania No.
2x pig iron a year ago was $36.15 a ton, but is
now $45.35 a ton. All derived products of
steel, including sheets, tin plate, bars, pipe,
tubes, etc., have advanced very greatly in
price. The demand for chain has been especially heavy, but prices have not advanced as
rapidly as elsewhere. Sheet steel for use in
automobile manufacturing has been in strong
demand and the prices show an increase of
$21 per ton as compared with a year ago. In
district No. 6 (Atlanta) th re is great activity
in the iron and steel industry and pig iron is
selling from $40 to $43 per ton, with no accumulation of stocks. The production for
January, 1920, was slightly larger than for
December, 1919.
Coal production is reported by district No. 3
(Philadelphia) to have been 86,200,000 tons of
anthracite in 1919, as compared with 98,826,084
tons in 1918. In January shipments for the
nine anthracite-carrying roads were 5,713,319
tons, as compared with 5,638,383 tons in
January, 1919. The latter part of January
and the first few weeks in February have been
characterized by weather which has restricted
production and the movement of cars. Shippers of coal have been embarrassed by having
their money tied up in coal that has been confiscated. The bituminous output for January,
1920, is reported as 49,419,000 tons, corresponding to an index number of 133, as compared with 41,485,000 tons, or an index number of 112, in January, 1919. The index number for coke for January was 76, shipments
being 1,982,000 tons, while for January, 1919,
the index number was 92, with shipments
2,401,967 tons. In district No. 4 (Cleveland)




MABCH, 1920.

it is reported that coal is going forward from
the upper lake ports as fast as the railroads can
handle it, and stocks will be low all around at
the opening of the shipping season.
Petroleum production in the Kansas and
Oklahoma fields for January was somewhat
over 10,000,000 barrels, or about the same as
for December. This was a gain of 96 per cent
over January, 1919. In Wyoming and Colorado current monthly figures are not obtainable, but reports indicate a good January output. The Wyoming production for 1919 averaged 1,147,750 barrels per month. There has
been a decrease in stored stocks of petroleum,
while a slight increase in the monthly production has taken place. A tendency to substitute
oil for coal throughout the country is proceeding and increasingly severe drafts are being
made upon the accumulated stocks of the
product.
General manufacturing is very active all over
the country, but in textiles there has been some
decline as compared with December. In district No. 3 (Philadelphia) the demand for raw
cotton has fallen off because mills are well supplied. A conservative policy as to purchases
of raw material is being pursued. Cotton-yarn
manufacturers are well sold ahead and are
bringing their mill production nearer to capacity, although there has been a slight falling off
in the past 30 days. Prices are higher to-day
than they were a year ago by about 100 per
cent in some cases. In district No. 1 (Boston)
there is a disinclination on the part of mills to
lay in raw material. The domestic yarn market
is quiet and there is an " abundant tendency
to caution." Cotton fabrics, including the fine
grades, have lately been in less demand.
There is a conviction that " prices have at last
attained their maximum." Cotton-goods manufacturers are running at capacity and export
demand is fairly strong, while opinion as to
prices is divided, some manufacturers believing
that the peak has been reached.
Raw wool supplies of the finer grades are
insufficient and little is being offered in the
market. Woolen-yarn manufacturers report
an excellent demand and are operating their

MARCH, 1920.

FEDERAL RESERVE BULLETIN.

plants to capacity when they can get the labor.
Finished goods manufacturers in district No. 3
(Philadelphia) find their products so much in
demand that they are obliged to allot the output among their customers. Good business is
expected. In district No. 1 (Boston) woolen
mills are running to their full capacity and
claim to have no surplus of manufactured
goods. Deliveries are being made promptly
and there is some overproduction of overcoatings. The dress goods market is quiet.
Wholesale trade conditions are reported
prosperous almost throughout the country.
Wholesale dry-goods houses in St. Louis say
that their sales in January, 1920, were in
many instances larger by 100 per cent than
in January, 1919. Their business was also
larger than in December. The retail stocks
are reported to be depleted. In Chicago, mercantile stocks are at a low ebb and wholesalers
state that the decline in foreign trade has apparently not affected them much. Some jobbers report the largest bookings in the history
of their business. They do not anticipate
any decline in orders. Similar conditions obtain in many other parts of the country. In
shoe manufacturing producers have received
heavy orders, but there is a dullness in the
leather market, while the reduction of exports
is believed likely to forecast a cut in prices to
consumers. The demand for good grades of
shoes, regardless of price, seems to continue.
In the leather field sole leather continues dull
and weak, while prices are not much changed.
Declining quotations for hides have brought
no corresponding movement in leather. Shoe
price lists for the new season are higher than
ever.
In spite of exceedingly high costs of building
material, the intense shortage of accommodations is causing a great growth. in building
operations in many parts of the country. On
the Pacific coast an increase of nearly 30 per
cent is noted as compared with December,
while as compared with January of last year
permits issued are nearly four times as great.
In the Southwest an even larger ratio of increase has been noted. On the basis of in-




229

complete statistics district No. 10 (Kansas
City) reports a relative increase of 467 per
cent during the past year, while district No.
11 (Dallas) reports 839 per cent. Great
building expansion in 1920 in the southwestern part of the country is accordingly anticipated. In the Middle West permits issued
have been far in excess of the corresponding
month last year. In the East and Northeast,
where the movement toward increased building started perhaps earlier than it did in other
parts of the country, the growth is not always
so noticeable, relatively speaking, but the
activity is still considerably on the increase.
Difficulty in obtaining deliveries of building
materials have been severe. Scarcity of cars
has prevented the movement of lumber and
heavy building materials and the effect of
this situation will be to restrict the early
spring progress in construction.
Labor conditions are quite generally reported
throughout the country as being in fairly stable
position. The most unfavorable aspect of the
labor outlook is the tendency reported from
various districts toward restriction of output.
Even in those cases, however, where this tendency is noted, the opinion is occasionally expressed that the effect of the restrictive policy
in injuring those who practice it is beginning to
be better understood. Scarcity of labor is
noted in many districts, particularly in the
agricultural regions, and as a result reduction
in the acreage of farms and the output in some
manufacturing lines is foreseen. An especially
acute situation in farm labor is reported from
the Southwest. In the eastern manufacturing
districts notable increases in the proportion of
men employed and in the advance of factories
toward capacity production have occurred. In
some specialized industries, however, either
strikes or shortage of raw material have led to
restriction of output, although such interferences have not been extensive. Many plants
which during the war were not able to bring
more than a substantial percentage of their
machinery into active operation have succeeded
in getting much closer to total activity. It is
noted, however, that even those plants which

230

FEDERAL RESERVE BULLETIN.

are running at full capacity are in some instances unable to turn out as much as in prewar
days. From Cleveland it is reported that one
large employer of labor finds that while the
numerical strength of his staff has increased 11
per cent, the augmented force is producing 14
per cent less than the old force. On the Pacific
coast labor has been fully enployed and unemployment during the winter months has been
purely nominal. A fairly extensive telephone
strike recently occurred, but apparently has
not enlisted the support of a very large proportion of those subject to it.
During the month of February there was a
continuation of the heavy demand for funds
which had been characteristic throughout the
country for more than 90 days. Advances in
rates of interest, both for call and time money
and for commercial paper, carried the general
cost of loan funds up to a figure probably in
advance of any that had been recognized in
the United States for some years past. Coincident with these advances in the cost of loan
funds was a decline in the quotation of the best
investment securities, while on the whole a
shrinkage or contraction in the volume of
trading in all classes of securities throughout
the country was observed. In the opinion of
some districts there were also indications of a
reduction in the volume of speculation in
commodities. The effects of the increase in
rediscount rates at Federal Reserve Banks
made themselves evident in a more conservative attitude on the part of banks in general
with respect to industrial expansion and in
the cutting of commitments on speculative
account. From district No. 2 (New York) it
is reported that during the past 30 days there
has been "a gradual reduction in bank loans,
more than two-thirds of which has been in the
decline of loans secured by stocks and bonds.
Since last October, when bank loans at this
district were at their highest point, they have
declined 10 per cent." This contraction of
bank credit was not, however, general throughout the country, but the reduction in New
York was partially offset by an increase in
other districts. A decline in bank deposits,




MARCH, 3 920.

both in the financial centers and throughout
the country generally, has occurred, a part of
it being due to the withdrawal of Government
funds. Very great difficulty in placing both
commercial paper in satisfactory quantity
and conservative investment securities is
reported by dealers. Some evidences of the
transference of demand which would naturally
be exhibited through investment institutions
to commercial banks is also noted, and member
banks have quite generally increased the
scope of their demands upon Federal Reserve
Banks. In the West and Middle West "money
is in strong demand both in the country and
in the city," while the movement of credit
continues to indicate great activity. In district No. 4 (Cleveland) there has been little
activity in the acceptance market, dealers are
purchasing as few bills as possible, and credit
accommodations are limited, although there
is abundant money for "legitimate uses."
On the Pacific coast, bank clearings have fallen
slightly as compared with December, but aFe
still far ahead of January, 1919. Interest and
discount rates are firmer and the demand for
funds is- strong. In the South and Southwest
borrowing is active, although a temporary
check has been caused by advances in discount
rates. This temporary setback is not expected
to continue long, spring requirements necessitating a renewal of sharp demand for accommodation. There is evidence that financial and banking authorities all over the
country are looking more seriously to. the
general situation in credit and are beginning
to urge the adoption of conservative policies.
Foreign exchange has suffered a collapse
which carried rates down to the lowest level
thus far recorded early in the month, after
which recovery took place. Predicted reduction of exports has not been borne out by the
Government figures for January, which show
an advance over December amounting to
about $50,000,000. A material cut in the
amount of credit available for the support of
exportation is taking place.
The general prospects at the close of February are favorable to an active, prosperous

MARCH, 1920.

FEDERAL RESERVE BULLETIN.

spring season in the principal manufacturing,
wholesaling, and retailing lines. Wages continue very high and labor in strong demand.
Agricultural prospects are good and the curtailment in exports due to foreign exchange conditions, while undoubtedly beginning to make
themselves felt, is believed by many to be
beneficial to the consumer rather than injurious. A tendency to resist the advance in
prices and some increase in care in purchasing
are regarded as favorable symptoms. The
credit and money situation continues strained
and there is a scarcity of funds both for long
and short term use.
SPECIAL REPORTS,
MONEY AND EXCHANGE.1

The conditions which prevailed in the money
market during the preceding month were continued into the period just past with increasing
acuteness. High rates for call and time
money, and the inability of bill dealers and
commercial paper distributing houses to attract
any wide demand despite advanced offering
rates, are in sharp contrast with the state of
things normally existent at this season. Government withdrawals from the banks in unusually large amounts were accompanied by
fluctuations in call money quotations ranging
as high as 25 per cent, with renewals for a considerable part of the period quoted between
10 and 17 per cent. The redemption of a
maturing issue of certificates of indebtedness
early in February afforded no apparent relief
to the money market. Time loans continued
practically unobtainable, though borrowers
bid 9J and 10 per cent for money on industrial
collateral. Latterly, the situation has become
easier, largely as a result of the liquidation
which has occurred in the stock market, and
call loans were made and renewed at 6 per
cent; but time money continues scarce, with
rates nominally at 8^ and 9 per cent.
Commercial paper rates have continued on
*^e upward trend, and prime names are offered




» From report of district No. 2 (New York).

231

at 6^ and 6|- per cent, with a small proportion
of sales reported at 7 per cent. New York
banks are practically out of the market, but a
scattered distribution outside has been sufficient
to absorb the smaller volume of paper which
is coming out. The bill market at this center
continues inactive, and sales out of town are
only in limited amounts. Dealers early in the
period advanced their rates to 5i-5f for prime
member bills, while the purchase rates of the
Federal Reserve Bank ruled from 5{ to 5J per
cent.
The stock market,—Heavy liquidation has
been in progress on the stock exchanges, and
many large declines have been recorded.
The decline in stock prices which had proceeded
in an orderly manner since the beginning of
the year in a market characterized generally
by professional operations was rapidly accelerated during the past 30 days, and stocks at
times were pressed upon the market in a
manner apparently regardless of price. The
increased tension in the money situation and
conditions bordering upon demoralization in
the foreign exchanges were in part responsible
for the decline, and in addition to domestic
selling there were evidences of a considerable
volume of liquidation for foreign account, which
appeared particularly among the better class
of rail stocks. Average of daily sales for a
considerable time well exceeded the million
mark. Recently the market has displayed a
steadier tone. Some of the more speculative
issues have shown losses from the high point of
last November running to 40 per cent or more.
A representative list of 20 industrials declined
from 119 on November 3 to 79 on February 5,
an average of 34 per cent. Rails have held to
about the record low levels established in
December, although there was a spasmodic
recovery in the last week. Railroad issues
average about 10 points (or 12^ per cent)
below a year ago, while industrials are still
about the same degree above February of 1919.
Falling prices were attended by decreasing
sales, the total of January transactions on

232

FEDERAL RESERVE BULLETIN.

the New York Stock Exchange reaching
19,600,000 shares. This was a decline of 4,600
million shares as compared with the heavy
trading of December, but 8 million shares above
January of 1919.
The bond market.—The general level of bond
prices has further declined since the report
in January, and the average of 40 listed issues
reached the lowest level on record on February
13, being 7.82 points below the average at
the beginning of 1919. Sales from January 1
to date aggregate approximately $578,000,000,
which is about 28 per cent greater than during
the corresponding period of 1919, but sales
have not been as heavy as during December.
Liberty bonds were under heavy pressure
during the last week in January, and the first
week in February, when the money market
was experiencing the greatest strain of the
year and foreign exchanges had developed
extreme weakness. After reaching their lowest price level during the first week in February, a decline of about 2 | points since
the 1st of January, Libertys have held somewhat firmer, in sympathy with easier money
and firmer foreign exchanges, while other bonds
have continued to decline.
At the close of January, State and municipal
bonds were selling at practically the lowest
prices reached any time during the war period.
Sales of such securities during January
amounted to $68,000,000, as against $81,000,000 in December.
Increased activity in the selling of foreign
securities is reported both with respect to
American securities formerly held abroad and
issues of foreign Governments, municipalities,
and corporations. Both the French and Belgian Governments are offering in this market,
through banking houses acting as agents, their
new internal 5 per cent premium loans. These
bonds present unusual features in governmental
securities. They are redeemable in semiannual
drawings at 150 per cent, i. e., 750 francs for
each 500-franc bond. At the present rate, of
exchange these securities offer an extremely
high rate of interest to purchasers in this country, still further to be increased, in variable
amounts, by the periodical redemption at 50
per cent premium over the nominal amount of
the bond.
Foreign exchange,—The first week of the
period showed the most complete demoralization of the exchange market known in this
generation. Sterling fell to a record figure of
3.18, French francs went to 15.15, and Italian
lire to 19.72. There was later a considerable
recovery, especially in sterling, which rose on




MARCH,

1920.

February 13 to 3.43, a total gain of 25 points.
There was likewise a reversal in the movement
of Japanese exchanges which have in general
been favorable to that country, but have this
month fallen below the point of normal parity.
There was concurrently a further fall in Canadian exchange; our dollar rose to a premium
of as high as 17J per cent.
Foreign trade,—The continued and unprecedented fall in exchange has brought renewed
apprehension of a sharp contraction in our
large volume of foreign trade, with a consequent disturbance of the general business of
the country. It should be remembered, however, that our foreign trade, even at the present
large volume, has nothing like the importance
which foreign trade possesses, for example, in a
country like England. In the latter, in normal
times foreign business probably exceeds a
quarter of the entire trade of the nation. In
this country it can hardly exceed 8 or 10 per
cent; most estimates are, indeed, considerably
lower than this. Nor has the actual expansion
during the war period been anything like as large
as is popularly supposed. In physical volume
it probably does not much exceed 40 per cent
for export and very little for import; allowing for five years of normal trade growth, the
present proportions measured in tons, bales,
and barrels are less than one-quarter greater
than before the war. In other words, if it was
7 or 8 per cent then, it is not much over 10 per
cent now. Moreover, our exports have been
largely of indispensables, commodities in which
this country has relatively small competition.
Our principal export staple is still cotton, and
even here, although measured in dollars the
amount is very large, the actual volume of
shipments in the last 12 months has been below
prewar years. England's cotton industry seems
remarkably prosperous, but Germany's textile
mills, formerly our second largest buyers, are
not yet functioning to any considerable extent.
There has been an enormous expansion in our
shipments of meat and other food products;
and this has been larger in the last year than in
any year of the war. This was obviously abnormal and represented a considerable stocking
up of depleted supplies. On February 16 the
meat packers' institute issued a bulletin stating
that meat exports had practically ceased; that
England has now large supplies on hand. The
same was true of other neutral countries, and
sales to Germany under existing conditions
were not feasible. On the other hand, the
expansion in our foreign shipments of iron and
steel manufactures has been almost as great as
that of the meat trade; and on latest reports

MARCH,

1920.

FEDERAL RESERVE BULLETIN.

this shows no signs of diminution; quite the
reverse. Copper shipments remain remarkably low, and must inevitably expand with the
revival of industry in Europe. Here Germany
was formerly our largest customer and it is now
buying very little. Especially notable is the
relative decline in our imports from Europe
and the great expansion of those from
South America and Asia, with relatively little
expansion in our exports to these countries.
In other words, we have been selling heavily to
Europe and buying from Europe relatively
little. The reverse has been true of our trade
to South America and to the Orient.
The gold premium

and depreciated

curren-

cies.—In the main the fall in European exchanges, which has, of course, been general and
not confined to relations with the United States,
represents largely an endeavor to adjust our
currency and that of other nations to the inflated and correspondingly depreciated currencies of Europe. This is revealed by the rise
in the gold premium in London step by step
with the fall in sterling. There normally exists
between all countries which have extended
trade with each other a certain balance between the price level, the state of currency,
and the rate of exchange. Thus, for example,
in Great Britain, prices since the war began
have risen at least one-third more than in the
United States, which roughly corresponds to
the fall in exchange and the amount of the
prevailing gold premium. In terms of gold,
then, the general price balance between the
two countries remains in about the same
correspondence as before. Moreover, the
actual quantity of American products seriously
affected by present exchange rates is relatively
small. So far as the great proportion of our
exports is concerned, they must be taken at
the prices obtainable, forcing a corresponding price in the depreciated currencies of
Europe.
There is a widely prevalent idea that the
post-war needs of Europe have enormously increased our exports to that continent, and that
it is this which has created the present disturbing situation. This has little justification
in fact. On the whole, with Germany, Austria,
and Russia out of the market, the proportion
of our exports to Europe has not sensibly
changed. It was 60 per cent in 1913. It was
63 per cent last year. That of England,
France, and Italy has somewhat augmented,
but even here the gain is relatively small.




233

THE EFFECTS OF CAR SHORTAGE.

Acute car shortages, resulting in curtailment
of production and hampering the delivery of
finished goods, are very generally commented
upon in the reports of the Federal Reserve
agents.
In district No. 4 (Cleveland) the situation is
serious in a the iron and steel industry. It is
said that i n a number of cases producers of
iron and steel have been forced to scale down
their operations either because of a lack of
essential materials, such as coal, or because
they had stocked about all the tonnage of
finished rolled steel which their yards could
accommodate. The Carnegie Steel Co. at one
time had in its yards from 150,000 to 160,000
tons of finished steel which it could not ship
to its customers because the cars were not
available. Independent companies in the Pittsburgh and Youngstown districts, particularly,
were affected to a corresponding degree. Some
customers who are running close on steel supplies in turn were affected adversely in their
activities by the failure of material to arrive
promptly. At the same time it sent them into
the market in search of early tonnage and this
has tended further to bid up prices."
"The shortage of coal is causing widespread
alarm throughout the district and it is believed
that unless relief comes soon there may be
enforced periods of idleness in many shops and
factories."
Reports indicate that the car supply at the
mines has seldom been above 50 or 60 per cent
since the strike, and that it has averaged as low
as 30 per cent at some periods. In many
places miners have been able to work but two
or three days during the week and remain idle
until another lot of cars arrives.
"The production of coke has fallen off for
the same reason. At the close of the first
week in February, the Connellsville region reports indicate a lower average output of coke
than for some months past, though the first
few days of the second week indicate that some
improvement is probable."
The brick industry has also, "despite a veritable flood of orders for fire clay and silica
brick," been reported to be "running at about
50 per cent of capacity, whereas the volume of
business would warrant full capacity except
for a shortage of cars. One building-brick
concern reports they are 250 cars behind ordinary allotment."

234

FEDERAL RESERVE BULLETIN.

MARCH, 1920.

Car movements in the Cleveland district an equal quantity of other grains and corn.
during the month of January were as follows: Country elevators contain 18,000,000 bushels
of wheat, and Minneapolis and Duluth terminals something in excess of 11,000,000 bushels.
1919
1920
The car supply at Minneapolis terminals averaged 527 cars a day for the first 10 days of
Tons.
Cars.
Tons.
Cars.
January and 240 cars a day the first 10 days of
February. The falling off for the 30-day
1,191,277
34,985
959,913
27,647
Received
17,747
472,159 period terminating at the middle of the month
499,778
18,408
Forwarded
Four hundred
1,459,691
1,663,43 was approximately 3,000 cars.
45,394
53,393
Total
6 country elevators in the States of Minnesota,
North Dakota, and South Dakota are closed to
In district No. 5 (Richmond) "coal producers the famers, because of the inability to move
are running below capacity because of car accumulated stocks. No substantial relief is
shortage/' and "demands for empty cars ex- in sight. Recent tabulations of freight moveceed the supply in every line of business re- ments for Minneapolis show a falling off of
ported."
practically 3,000 cars as compared with the
In district No. 6 (Atlanta) the car shortage same month a year ago."
is especially serious for the coal operators.
District No. 10 (Kansas City) characterizes
"Reports from the Birmingham district and in the car shortage as a positive menace, and says
Tennessee are to the effect that the coal pro- that "while there are many complaints that the
duction is greatly reduced by the car shortage, car shortage is retarding the free movement of
from which there is no indication of immediate grain from the States of this district, it must
relief. There is a heavy demand for coal of also be understood that the effect of the shortall grades, however. With the continued warm age is also keenly felt in the moving of products
weather, the supply of domestic coal has been of the mines in this part of the country, and in
sufficient to meet the demands without any the bringing in of supplies of merchandise,
serious suffering on the part of the public. The lumber, and materials for building and constocks of all grades on hand are at a minimum, struction."
and the demand for steam, coking,
and gas
"A report of the Nebraska State Railroad
coal is reported extraordinary.'7
Commission calls attention to a preponderance
Testimony from other districts of the Middle of foreign cars operating on the railroads in
West emphasizes the evidence given in the that State. It was shown by a check in NeCleveland report. District No. 7 (Chicago) braska that of 29,157 box cars operated by one
says that insufficient production is the feature railroad, only 2,406 cars owned by that railof the steel market. "The steel companies are road were in use in that State, the remaining
sold up far in advance, and production has been 26,751 being foreign cars. Railroads are reseriously retarded by fuel and transportation luctant to spend large sums of money repairing
shortage." Coke still remains very scarce cars belonging to other lines, and since the return
owing to the inadequate car supply, and the of company cars to owning roads is very slow,
grain movement is slower than usual at this no improvement in the situation can be
time of the year. In the case of automobile expected."
factories "plant capacity can not be reached
"As the present available supply of cars is
owing to the shortage of material, fuel, and wholly inadequate to move the wheat and corn
labor, while the inadequate supply of freight offered from the farms and interior elevators,
cars is also holding up shipments."
the approach of March 1, with prospective
District No. 8 (at. Louis) also refers to inability of farmers to realize on their grain by
frequent complaints of slow deliveries, due in that date, is a matter of grave apprehension to
part to inadequate transportation facilities, the farmers, the banks, and other institutions,
while district No. 9 (Minneapolis) regards the according to the view of the Nebraska comunfavorable transportation situation as the mission."
outstanding feature of present conditions.
"Activity at the principal milling centers in
"Approximately 60,000 cars are needed to district No. 10 has declined slightly in the past
move what is left of last season's crop in the three weeks, largely on account of the shortage
grain-growing portion of the ninth district, of of cars and the element of uncertainty in the
which one-half are needed to move wheat. export flour trade."
Stocks still in the hands of the farmers repre"Transportation disability was likewise resent about 11,000,000 bushels of wheat, and sponsible for an average of 7.4 per cent weekly




MARCH, 1920.

FEDERAL RESERVE BULLETIN.

loss of activity in coal mining operations in
Kansas, 6 per cent in Oklahoma, 4 per cent in
Missouri, and 3.7 per cent in Colorado."
The large stocks of zinc ores purchased during the last nine months also present a difficult
problem to transport agencies. "This accumulation is estimated at from 60,000 to 80,000
tons, and it is only within the last month that
the shipments have approximately equaled the
purchases and production, and this was accomplished only by the herculean efforts of every
organization connected with the industry.
Whether it will be possible to move this accumulation of ores during the next three
months and thus relieve the shipping situation
remains to be seen, but the history of the past
nine months is not very encouraging in this
respect."
District No. 11 (Dallas) refers to the car
shortage as "the principal disturbing element
in the present situation." There are no immediate prospects of relief and meantime a
number of lumber mills are not operating because of lack of stocks (bad weather being in
this case a contributory factor).
In district No. 12 (San Francisco) much of
the 1919 grain crop of Oregon is still held in
interior warehouses. "In Washington approximately 1,500,000 bushels of wheat were
moved during January, but of this amount only
about 10 per cent was carried outside of the
State. About 90 per cent of the wheat received in Seattle in 1919 is still held in that
city as manufactured flour, as flour in process of
manufacture, or as wheat held in storage by
millers."
"Car shortage continues to restrict operations in the lumber industry. In the Pacific
Northwest lumber mills are receiving only 30
per cent of the cars required, and lumber manufacturers report production as equaling only
87 per cent of plant capacity and orders accepted as only 50 per cent of business offered."
CONTRACTION OF BANK CREDIT.

According to the report from district No. 2
(New York), "the effect of the increase in the
Federal Reserve discount rates, announced on
January 21, is evident in a generally conservative attitude of banks and business men toward
industrial expansion at this time, and in a substantial liquidation of speculative commitments. * * * In the four weeks ended
February 13, the 71 banks in New York City
which report weekly to the Federal Reserve
Board reduced their loans $178,000,000." It
is pointed out, however, that this contraction




235

of loans is not reflected in the reports of the
Federal Reserve Bank. "The total earning
assets of the Federal Reserve Bank of New
York on February 20 were $1,100,000,000, not
much below the maximum for this bank
reached early in January when the Treasury
required special accommodation. The withdrawal from the banks of Government deposits,
until they are now at a minimum, accounts to a
considerable degree for the increase in the loans
of this bank."
Despite some expansion in the loans#of the
banks in other districts, which make reports to
the Federal Reserve Board, there is considerable testimony to the effect that credit accommodation is being extended with greater discrimination and that efforts to restrict speculative
loans have not been without result.
In district No. 4 (Cleveland), for example,
it is affirmed that "the wisdom of the action
of the Federal Reserve Bank in raising the
discount rate is reflected in a more careful
scrutiny by bankers of applications for loans
to determine the purposes for which they are
to be used. Bankers generally report that
plenty of money is available for legitimate
uses but none to be had for speculative purposes. Bankers feel that with the expansion
of present business and the advent of new
industries which are sure to come, they can
employ their money more profitably than in
speculation."
"The supply and variety of bills in the open
market is good, but in spite of this the market
has remained dull due to the lack of available
funds for any form of investment. An encouraging feature since the first of the year
has been the number of new purchasers, who
have found the higher return on acceptance investments an incentive to enter the market,
but still the demand remains small due to the
liquidation of credits, and is insufficient to
bring about the desired balance in the market."
"Previously low money rates were indicative
of an increased demand, but in spite of the
comparatively low money rates of the past
week there has been no change in the general
condition of the market. Dealers are purchasing as few bills as possible, and are quite
reticent in bidding on future deliveries, due to
lack of credit accommodations and the fear
that the open market rates may again increase
in order to stimulate an essential demand."
District No. 5 (Richmond) says: "Borrowing is being limited to necessary purposes and
efforts to restrict
loans for speculation are
being pressed.7' Elsewhere in the report it is
stated that "money is in demand at lull rates,

236

FEDERAL RESERVE BULLETIN.

but the needs of the district are being ampty
provided for. While deposits have shown
some shrinkage, many banks, when deposits
were at high water, invested in outside highgrade commercial paper. They are therefore
fortified to some extent to meet a normal
shrinkage in deposits and partially supply the
demands for pitching this year's crops."
In district No. 6 (Atlanta) " there is an upward tendency of interest and discount rates
and a prevailing disposition to restrict credit."
In (^strict No. 8 (St. Louis) " bankers report
that there is a strong demand for money but
that they are now choosing their loans with a
view to placing their funds where they will
serve the best industrial and commercial purposes. Loans and investments in 35 reporting
banks in this district show an aggregate decrease from January 9 to February 13 of
$3,625,000 and the time and demand deposits
show an aggregate decrease of $10,407,000."
Many small dealers in district No. 8 are having difficulty in financing their business u which
has developed beyond normal and at prices
which are extremely high."
District No. 10 (Kansas City) says that "the
report of the Federal Reserve Bank as of
February 13, 1920, shows that some progress
is being made toward contraction of the use of
the credit facilities of the bank for other than
purely business financing."
Moreover, "76 member banks selected from
scattered localities over the district reduced
their holdings of United States securities
$20,399,000 and also cut down loans secured
by Government war obligations $1,505,000 in
the four weeks between January 9 and February 6 of this year. At the same time these same
banks increased their Federal Reserve balances
$6,757,000 and also added $1,009,000 to demand deposits on which the reserve is computed. Time deposits were $88,242,000 on
February 6, 1920, against $67,117,000 one year
ago, an increase in the year of 31.4 per cent.7'
However, the check to loan expansion in district No. 10 which followed advances in discount rates "is not expected to continue after
the seasonal demands set in early in the spring.
In fact, there is already noticeable a slightly increasing demand, which will probably necessitate further increases in rates/'
" I t is anticipated that March 1 settlements
on land contracts will create an abnormal demand in certain sections and since an element
of speculation has entered into land dealings in
the last year, some difficulties are expected in
the financing of settlements. Bankers are cautioned that speculative loans should be elimi-




MARCH, 1920.

nated, in order that funds may be conserved to
care for the legitimate seasonal demands which
will soon be upon us."
In some cases it seems that the liquidation
of loans is hampered or prevented by special
circumstances over which the banks have little
or no control. In district No. 3 (Philadelphia),
for example, it is said that "shippers of coal
are much embarassed by the large amount of
money tied up by the confiscation of coal and
its delivery to other than the original consignees. Much delay arises in determining the
price of such coal, and the collection of the accounts, during which time the shippers must get
very unusual bank credits to carry themselves.
This makes a serious situation for the shippers
and absorbs a large amount of bank credit?'
In district No. 9 (Minneapolis) car shortage
has been a controlling factor in preventing loan
contraction. "As a consequence of the slowing
down of transportation which has continued
since the beginning of the crop movement, normal fall liquidation is nearly five months delayed, and the Federal Reserve Banks and all
commercial banks are still carrying large loans,
which can not be liquidated until farm products are moved. The strain on credit is severe,
and promises to become heavier if liquidation
can not be forced during the next six weeks
and a substantial reduction of loans effected before the beginning of spring farm operations
due about that time. The planting season will
create heavy demands upon the banks because
of the scarcity and high prices of seed wheat
and because of high rates of farm labor."
"Bankers reporting from 35 points in the
district show loans almost 50 per cent greater
than totals shown six months ago. Farmers
and dealers generally have been forced to borrow for various purposes, including, no doubt,
sums to settle old obligations. With elevators
all over the district filled to overflowing with
last year's crop and no apparent improvement
in car conditions, there is every reason to believe that bankers will be called on to stretch
their already heavy loans to meet the needs of
farmers during the planting and growing season." Serious drouths in certain sections of
district No. 9 have also helped to retard the
liquidation of loans.
In district No. 7 (Chicago) it is also true that
car shortage has resulted in hampering loan
contraction along certain lines, as it is stated
that "loans to the grain and milling trade are
still at the peak," grain not having moved as
freely as usual, owing to car shortage.
In district No. 11 (Dallas) preparations are
being made for seasonal increases in loans.

MARCH, 1920.

FEDERAL RESERVE BULLETIN".

237

retail tradejindex forms from representative
department stores. The composite figures for
the cities and districts are simple averages. In
districts Nos. 1 and 12 the data were received in
(and averages computed from) actual amounts
(dollars). In district No. 2 the material was received in the form of percentages. However,
the stores reporting in this district are of relatively the same size, so that it is felt that the
error involved in computing averages from the
percentages is comparatively small. For the
month of January, 12 stores reported in district No. 1, 5 in district No. 2, and 27 in
district No. 12. For the earlier months the
RETAIL TRADE.
number of stores varied somewhat, due to the
In the tables following is given a summary of inclusion of new stores from time to time in the
the results obtained during the past few months reporting list.
in districts Nos. 1, 2, and 12 on the regular

"The district has now passed the peak season
of its surplus funds, and the banks report the
beginning of a strong demand from tneir customers for financing their needs during the
coming season."
On the basis of the evidence presented above,
with due allowance for the unfortunate consequences entailed by the partial breakdown of
transport facilities, and for normal seasonal
increases in loans, it would appear that prospects are good for further progress in the
direction of credit contraction and for increasingly rigid scrutiny of the character of loans.




238

MARCH, 1920.

FEDERAL RESERVE BULLETIN.
Condition

of retail trade in Federal Reserve districts
[Percentage of increase.]

Nos. 1,2, and 12.

<Comparison of nei sales with those of corresponding period previous year.

July 1, 1919, to close of—

1919

August. Septem
ber.
District No. 1:
Boston
Outside
Total
District No. 12:
Los Angeles
San Francisco
Oakland
Sacramento
Seattle
Snokanp
Salt Lake City
Total
District No. 2:
New York City and Brooklvn

22.4

30. £

48.8
31.3
20.7
16.7
23.7

68.3
40. S
25.1
32.£
27.6

23.2

1920.

December.

November.

October.

33.2
43.5

42.3
41.9

52.0

S(jptem-

August.

19.4

42.1

34.8
83.8
53.5
41.4
54.2
23.9
36.2
23.8

58.3
30.0
20.1
15.4
24.4

52.9
33.1
22.4
22.4
28.3

37.2

25.8

69.9
46.5
32.3
35.7
31.6
99.9
24.8

77.2
46.3
31.9
35.7
29.5
70.4
32.0

77.3
47.1
31.9
39.5
29.3
72 0
29.2

34.4

46.9

47.5

47.0

33.4

42.7

77.3
54.6
29.8
50.7
28.6
77 1
32.3

23.9

30.3

40. €

82.0

46.1

50.7

51.7

31.0

49.0

43.4 [

49.2

54.6

44.0

43.6

A

36.3
38.5

—

88.7
45.2
3
6
0

33.0

30.8

110.6
92.3 '
68.5
69.2
50.6
176 0
44.8

30
36
21
46

DecemOctober. November.
ber.

ber.

49.7

Stocks at end of month compared with—
Same month previous year.
August, Septem- October, Novem- Decem- January, August, Septem- October, Novem- Decem- January,
1919. ber, 1919. 1919. ber, 1919. ber, 1919. 1920.
1919. ber,1919. 1919. ber,1919. ber, 1919. 1920.

District No. 1:
Boston
Outside
Total
District No. 12:
Los Angeles
San Francisco
Oakland
Sacramento
Seattle
Spokane
Total
District No. 2:
New York City and Brooklyn

6.4

6.3 ,
i 7.5
120.3
7.2

11.4

1.6
10.6

110*. 7
17.8

.9

7.0

7.1

12.9

4 9

13.9
15.5
1.4
14.6
15.2
11.9

25 4
24.9

29 7
28.4

25.2

29.6

i6 3

5.5
15.6
6.3
18.7
22.7

7 5

5 3

4.2
13.2
12.6
4.8
13.2

19.5
26.5
4.9
.3
15.3
13.8

31.0
32.7
9.2

44.0
45.9
10.6

31.4
13.2

44.5
25.4

17.5

28.5

38.0

12.6

10.3

36.4

44.0

.1

15.2

.

5.6
9.7
5.4
3.7
6.5
6.5

i0 9
i 13.8

i5 2
13.7

16.1

15.1

110.9
i 11.1
i 9.7

9.7
4.7
18.4

i 18.9
U5.6

i 2.0

3.4
1.3

i 13.3

2.6

i 10.4

11.9

10.7
2.2
.2
16.1
i 2.9

9.4

Percentage of average stocks at end of each month to Percentage of outstanding orders at end of month to
average monthly sales for same period.
total purchases during previous calendar year.
July 1, 1919, to end of—
Aug.,
1919.

District No. 1:
Boston
Outside
Total
District No. 12:
Los Angeles..
San Francisco
Oakland
Sacramento
Seattle
Spokane
Salt Lake City
Total
District No. 2:
New York City and Brooklyn




277.0

481.7
418.6
547.1
468.2
411.6

Sept.,
1919.
461.9

459.5
460.5
564.7
400.7
459.0

422.4

470.7

573.4

504.6

Oct.,
1919.'

Jan. 1,
Dec,
1919.

19197

367.4

495.6
442.8
558.3
355 9
422.3

459.3

485.6
453.0
559.1
339 3
432.0
462 4
463.1

1

end of
Jan.,
1920.

360.7
413.9

320.8
229.8

382.1

306.0

424.3
403.1
600.2

422.7
405.2
490.6

378.0
411 5

427.1
508 8

Aug.,
1919.

21.5

Sept.,
1919.

18.1

Nov.,
1919.

19.4

Dec,
1919.

Jan.,
1920.

24.8
13.7

26.5
16.7

23.1

24.0

27.9
34.1

32.7
28.1

45.1
25.8

53.5
29.5

48.1
28.1

33.3
18.2

29.2

28.3

25.1

22.1
20 0
11.4

32.2
34 5

18.4
37 2

16.8
29.6

29.2

32.3

28.0

36.3

22.8

46.5

422.6

429.0

34.3

29.1

343.4

336.9

32.8

26.4

Decrease.

Oct.,
1919.

8.2

MARCH,

In district No. 5 reports from representative
department stores throughout the district give
the following averages. These averages are
made from percentages and are unweighted.
Percentage of increase in net sales for January,
1920, over those for January, 1919 (9 stores reporting)
8. 9
Percentage of increase in stocks on hand at the end
of January, 1920, over those on hand at the end
of January, 1919 (8 stores reporting)
33.1
Percentage of increase in stocks on hand at the end
of January, 1920, over those on hand at the end
of December, 1919 (7 stores reporting)
16. 3

In district No. 6 reports from representative
department stores throughout the district give
the following averages. These averages are
made from percentages and are unweighted.
Percentage of increase in net sales for January, 1920,
over those for January, 1919 (8 stores reporting)..
Percentage of increase in stocks on nand at the end
of January, 1920, over those on hand at the end of
January. 1919 (7 stores reporting)
Percentage of increase in stocks on hand at the end
of January, 1920, over those on hand at the end
of December, 1919 (7 stores reporting)
Percentage of outstanding orders at the end of
January to total purchases during calendar year
1919 (7 stores reporting)

DISTRICT NO. 11.

January, 1920, retail trade compared with December, 1919.
[+=increase; —=decrease.]

Reporting lines.

Firms
reporting.

Sales.

+ 15
-r25

1920, retail trade compared with January,

1919.

i No record.

f+= increase; — = decrt ase. ]

Reporting lines.

Firms
reporting.

Sales.

12. 6

Percentage increase in net sales, January, 1920, over net
sales, January, 1919:
Dry goods (13 stores reporting)
27.8
Furniture (4 stores reporting)
96. 2
Hardware (4 stores reporting)
24. 5
Millinery (2 stores reporting)
57. 5
Groceries (7 stores reporting)
36.5
Percentage increase in average stocks at close of
January, 1920, over stocks at close of same month
last year
12. 7
Percentage outstanding orders for stocks (cost price)
at close of January, 1920, to total purchases during
the calendar year 1919:
Cotton goods
20. 7
Woolen goods
38. 9
Silk piece goods
19. 9
Hosiery and knit underwear
51. 7
Men's and boy's clothing
43. 4
Men's and women's shoes
23. 6
Women's ready-to-wear
18. 9
All classes of merchandise
31. 9

cent. ! Per cent.
- 2 j
' '+ 6
+ 3 !
-10
-10
+ 15
+ 15
+ 7 >
-10
+ 70

24. 7

DISTRICT NO. 10.

! Unfilled
Stocks I wholesale
at end of i orders at
end of
month.
month.

Per cent. Per cent, i Per
-46
I
-26
+ 12
-48
+ 10
-27
+ 10
-28
+ 10
+26
+ 5
+52
-60

Groceries
Furniture
Dry goods
Clothing
Shoes
Hardware
Farm implements...
Jewelry

January,

16. 3

Selling
price.

I

29. 6

In districts Nos. 10 and 11 inquiries made of
several stores in a number of lines brought the
following average results:




239

FEDERAL RESERVE BULLETIN.

1920.

Groceries
Furniture
Dry goods
Clothing
Shoes
Hardware
Farm implements...
Jewelry

3
2
3
4
2
2
2
1

Selling
price.

Unfilled
Stocks wholesale
at end of orders at
month.
end of
month.

Per cent. Per cent. Per cent. Per cent.
+25
+ 1
— 7
0)
+45
+46
+118
+ 6
+30
+ 20
+ 38
+ 12
+25
+ 20
+ 25
+ 17
+20
-10
+ 10
+31
+20
+ 15
+ 75
+ 10
-10
+195
+25
+25
+ 30
+ 75
i No record.

Discount Policy and Credit Control.
[Extract from the Sixth Annual Report of the Federal Reserve Board
to Congress. Reprinted owing to exhaustion of advance edition of
the annual report.]

The experience of the past three years has
demonstrated the expansive power of the Federal Reserve System. It should be understood,
however, that an elastic system of reserve
credit and note issue implies capacity to control and the ability to curtail credit. The
ability of the system to check expansion under
present circumstances and to induce healthy
liquidation is now to be tested.
Owing to the abnormal ease of money
throughout the year 1915 and during the

240

FEDERAL RESERVE BULLETIN.

greater part of the year 1918, the Board had
Tittle opportunity to test the efficiency of what
it conceived to be the correct discount policy.
The principle had been adhered to consistently
that the Federal Reserve Banks should not
encourage rediscounting by members for the
sake of profit, but that their own resources
should be kept liquid and their reserve position
strong.
Although section 5202 of the Revised Statutes, which provides that no national banking
association shall at any time be in anyway
liable for borrowed money to an amount exceeding the amount of its capital stock, had
been amended by excepting liabilities incurred
under the provisions of the Federal Reserve
Act, it was not contemplated by the Board that
the member banks would, except to meet seasonal requirements or emergencies, avail themselves of this amendment in order to extend
their rediscount lines beyond the original limitations. It was the Board's view also that as
a rule the discount rates of the Federal Reserve
Banks should be higher than current market
rates, thus offering no incentive to member
banks to rediscount for the sake of making a
profit in the transaction.
Because of this policy and of the conditions
which prevailed up to the time when it began
to appear than the United States would be
drawn into the war, the reserve position of the
Federal Reserve Banks was so strong as to
suggest an analogy between the system and a
safe-deposit vault.
In his address to Congress, urging the declaration of a state of war with Germany, the President pledged all the resources of the Nation—which, of course, include its man-power, money,
credit, and goods—to the successful conduct of
the war. By an overwhelming vote the Congress of the United States carried out the
recommendations of the President, thus committing the country to the principles and policies outlined in his address.
Normal policies had to be subordinated,
just as private business was subordinated, to
Government business, and discount rates were
of necessity fixed with the primary object of
assisting the Treasury operations. How effective this policy was is now a matter of history.
As has already been pointed out, the Federal
.Reserve Banks became great bond-distributing
organizations; firms and corporations, large
and small, men and women in every walk of
life, were urged to subscribe for bonds, and
the credit facilities of the Federal Reserve
Banks were placed at the disposal of member
and nonmember banks in order that they




MARCH, 1920.

might lend freely on bonds for which the
subscribers were unable to pay. The public
was urged to borrow and buy, and it was
found after the close of the Victory loan in
May, 1919, that more than 20,000,000 subscriptions had been received in response to
this appeal.
But in addition to the appeal to borrow and
buy there was also added the injunction to
save and pay. To assist this process, during the
18 months when the war was in progress, there
was established a rigid control of such credits
as were not essential, directly or indirectly, to
the prosecution of the war, and the American
people proved their ability to economize and
to cooperate in the nation-wide policy of
conservation. As a result of this control of
nonessential credits, and of the cooperation of
the banks and the public, the Treasury was
able to float within a period of two years
$25,000,000,000 of interest-bearing obligations
without reducing the reserves of the Federal
Reserve Banks below a point which in normal
prewar times would have been regarded as a
very strong reserve for a central bank.
The combined reserves of the 12 Federal
Reserve Banks on January 3, 1919, amounted
to 51.3 per cent of their liability for deposits
and note issues. Due partly to the gold
embargo, this percentage was well maintained
during all the period of uncertainty which preceded the flotation of the Victory loan and for
some time thereafter, for not until July 9, after
the gold embargo had been removed, did the
reserves fall even fractionally below 50 per
cent. On September 26 the reserves stood at
51 per cent, after which date they show a
steady and continuous decline to 44.8 per cent
on December 26.
Although the period of war financing did
not terminate with the year 1918 and the
Federal Reserve System was consequently
under the continued strain of war finance,
that strain had to be met without the aid of
war restrictions. The safeguards afforded by
these restrictions were removed, for it was
impracticable to continue them in time of
peace. There is no longer an embargo on
exports of gold nor any regulation or control of
foreign exchange, with the trifling exceptions
already noted; the controls set up over exports
and imports, production and consumption,,
with a view of conserving the national resources and reducing waste, have practically
disappeared. As a result the problems of the
Federal Reserve System have been greatly
increased, more particularly the problem of
controlling credit.

MARCH, 1920.

FEDERAL RESERVE BULLETIN.

241

The Federal Reserve System lias met the ion, anticipating large profits, is not checked
requirements of war ana readjustment by by any reasonable advance in rates of interest.
expanding without, however, encroaching upon Tnese conditions are all adverse to an easy and
its legal reserves; it is capable, if need be, of effective operation of credit control by means
expanding still further without having recourse of discount rates.
Nevertheless, the discount rate is an indisto the emergency provisions of the act, and
very much further by availing itself of those pensable factor in the regulation and control of
provisions. But the time has come for it to redit. When there are legal limitations on
demonstrate its power to move in the opposite the rates member banks may charge, a high
direction, and to prove its ability to do so reserve bank rate has a restraining influence
without shock and with a minimum disturbance upon them and upon their customers.
of business and industry.
Although there are no specific limitations
Fortunately the condition of the Treasury imposed upon the amount of borrowings by
is such that the Board can now feel free to member banks at the Federal Reserve Banks
inaugurate discount policies adjusted to peace- there is a potential limitation provided for in
time conditions and needs. The large volume the act. In that part of section 4 which
of Government bonds looking for permanent relates to the duties of the board of directors
ownership during the year was, however, an of a Federal Reserve Bank there is the followimportant factor in the situation and retarded ing: "Said board shall administer the affairs of
the adoption of a normal discount policy. said bank fairly and impartially and without
Until the absorption of Liberty bonds is discrimination in favor of or against any memfairly complete the Federal Reserve System ber bank or banks and shall, subject to the
will be in a transition stage and normal bank- provisions of law and the orders of the Federal
ing policies can not be made entirely effective. Reserve Board, extend to each member bank
The absorption by investors of Government such discounts, advancements, and accommodabonds, as indicated by the figures cited earlier tions as may be safely and reasonably made
in this report, is a gratifying step in this with due regard for the claims of other memdirection. It should, however, be repeated ber banks."
that the time has come for the system, in the
Should all the member banks of a Federal
interest of commerce and business, to exercise Reserve Bank be borrowers, and should all
its power to regulate and control the credit ask for accommodations proportionate to those
situation.
which may have been advanced to a few, the
The normal and traditional method of credit Federal Reserve Bank would not be able out
control has been the discount rate; its efficacy, of its own resources to meet the demand.
however, presupposes normal conditions. An Therefore it is possible to determine theoretiadvance in rate operates under normal condi- cally what a fair line of accommodation for any
tions not only to diminish the demand for member bank would be; that is, what amount
credit by making certain activities unprofitable of accommodation can be granted "safely and
but as well to increase the supply of credit by reasonably * * * with due regard for the
attracting it from other centers or countries. claims of other member banks."
The conditions that make this traditional
Any attempt, however, to control credit by
control effective do not all exist at the present the application of this rule is subject to serious
time. The United States stands almost alone administrative difficulties. If the paper offered
as an important free gold market. Other is eligible and good, it would be better for a
countries are seeking and have obtained large reserve bank to grant accommodation at a
credits in the United States, as is evidenced by price rather than to refuse it entirely, but the
the fact that our exports exceeded imports act, subdivision (d), section 14, provides that
during the year by about four billions of a Federal Reserve Bank shall have power to
dollars, and we have paid our adverse balances establish from time to time, subject to review
in gold. It should be recognized that credits and determination of the Federal Reserve
extended to Europe create a demand for com- Board, rates of discount to be charged by the
modities that competes with the domestic Federal Reserve Bank for each class of paper,
demand and this competition is one of the which shall be fixed with a view of accommopotent causes of high prices. The demand for dating commerce and business. There is no
commodities from domestic as well as foreign authority, however, for establishing graduated
sources is so far in excess of the supply that rates based upon the total borrowings of a
the increased cost of credit due to an advance member bank, and consequently when it
in rates is absorbed in thefprice, and specula- becomes necessary to advance the discount




242

FEDERAL RESERVE BULLETIN

rate in order to curb the demands of those
banks rediscounting with the Federal Reserve
Banks in very large amounts the same rate
would have to apply to the moderate requirements of other member banks who may rediscount with the Federal Reserve Banks infrequently and never excessively. Thus the
application of rate advances as a corrective or
deterrent to certain banks tends to raise the
level of current rates to all.
The Board, therefore, recommends to Congress that an additional power be granted it,
by adding to subdivision (d), section 14, a
proviso that each Federal Reserve Bank may,
with the approval of the Federal Reserve
Board, determine by uniform rule, applicable
to all its member banks alike, the normal
maximum rediscount line of each member
bank and that it may submit for the review
and determination of the Federal Reserve
Board graduated rates on an ascending scale
to apply equally and ratably to all its member
banks rediscounting amounts in excess of the
normal line so determined. In this way, in
the opinion of the Board, it would be possible
to reduce excessive borrowings of member
banks and to induce them to hold their own
large borrowers in check without raising the
basic rate. The Federal Reserve Banks would
thus be provided with an effective method of
dealing with credit expansion more nearly at
the source than is now practicable and without
unnecessary hardship to banks and borrowers
who are conducting their affairs within the
bounds of moderation.
The expansion of credit set in motion by
the war must be checked. Credit must be
brought under effective control and its flow
be once more regulated and governed with
careful regard to the economic welfare of the
country and the needs of its producing industries.
Deflation, however, merely for the sake of
deflation and a speedy return to "normal"—
deflation merely for the sake of restoring security values and commodity prices to their
prewar levels without regard to other consequences, would be an insensate proceeding in
the existing posture of national and world
affairs.
It must never be forgotten that productive
industry is profoundly affected by credit conditions. Modern business is done on credit.
One of its life-giving principles is credit. The
mood and temper of the business community
are deeply affected by the state of credit and
may easily be disturbed by ill-considered or
precipitate action. A system of credit con-




MARCH, 1920.

trol must always be judged by what it does to
maintain a healthy condition of mind on the
part of all sections and classes of the producing community. The ultimate test of the functioning of a credit system must be found in
what it does to promote and increase the production of goods. True in general, the truth
of this observation deserves to be particularly
emphasized in the present deranged state of
world industry and world trade when production is the crying need of the hour everywhere.
Too rapid or too drastic deflation would defeat the very purpose of a well-regulated credit
system by the needless unsettlement of mind
it would produce and the disastrous reaction
that such unsettlement would have upon productive industry.
Radical and drastic deflation is not, therefore,
in contemplation, nor is a policy of further expansion. Either course would in the end lead
only to disaster and must not be permitted to
develop. The credit situation in the United
States is at bottom sound and safe. Our
economic and financial position is essentially
strong. There need be no occasion for apprehension as to our ability to effect the transition
from war-time to peace-time conditions if reasonable safeguards against the abuse of credit
are respected. There is, however, no need for
precipitate action or extreme measures. Extremes must be avoided, the process of adjusting the volume of credit to normal basis should
be effected in an orderly manner, and its
rapidity must be governed by conditions and
circumstances as they develop. Much will
depend upon the cooperation of the business
and general community. Indeed without such
cooperation progress can be neither rapid nor
substantial. Much will depend also upon the
rapidity with which the unabsorbed portion of
the outstanding issues of war securities passes
into the hands of permanent holders. As the
national debt is thus absorbed and as it is reduced through the operation of the sinking
fund, the loan accounts of the banks should be reduced correspondingly until the proper balance
between the volume of credit and the volume of
concrete things, which credit helps to produce
and which are the normal basis of credit, is restored. This equilibrium, it can not be too
frequently or too emphatically stated, can be
restored only by speeding up the processes of
production, by the orderly distribution of
goods, bv the avoidance of wasteful consumption, and by the increased accumulation of savings. These are the fundamental economic
processes upon which the proper functioning of

MARCH, 1920.

FEDERAL, RESERVE BULLETIN.

the Federal Reserve Banks must depend. The
Federal Reserve System can do much to assist
these processes, but it can not of itself and alone
compel them. Efficacious action along these
lines involves the intelligent and earnest cooperation of the business and general community.
While the Federal Reserve Board will always be
mindful of the interdependence of credit and
industry and of the influence exerted on prices
by the general volume of credit, the Board
nevertheless can not assume to be an arbiter of
industry or prices. Its primary duty, as the
guardian of the Nation's ultimate banking reserve, is to see that the banks under its supervision function effectively and properly as
reserve banks.

243

Italy alone have they actually declined from
the 1918 level.
The causes for the fluctuations are too
complicated and diverse to make possible a
general or authoritative statement as to the
effect of war financing, Government purchases,
submarine warfare, scarcity, etc., on the wholesale price level. The extent to which Governments have released prices and industries from
war-time control, however,
can be sketched in a
general sort of way,1 and certain conclusions
reached as to the effect of control on prices.
No consideration will be given to the influence
of price control upon production and business
activity nor will the fiscal aspects of the
problem be gone into.

FEBRUARY 2, 1920.
ISSUES INVOLVED IN ABROGATION OF CONTROL.

The Present Situation as to Price Control in
England, France, and Italy.
PRICE MOVEMENT,

1913-1919.

The following table represents the movement
of wholesale prices annually in the United
States, England, France, and Italy during the
years 1913-1919, according to index numbers
published elsewhere in greater detail in this
BULLETIN:
Index numbers of wholesale prices (all commodities),
1919.

1913-

(1913=100.)

1913
1914
1915
1916
1917
1918
1919

. . .

United
States;
Bureau of
Labor
Statistics.

United
Kingdom;
Statist.

100
100
101
124
174
197
215

100
101
126
159
206
226
242

France;
Prof.
Statistique Italy;
Bachi.
Generate.

100
102
140
187
262
339
356

100
95
133
202
29£
413

*348

i Average for first 10 months of the year.

A study of the table shows that prices in each
of these countries rose considerably less
markedly in 1919 than during any year of the
war. In the United States the greatest advance took place during 1917; in England
during 1917; in France both 1917 and 1918 saw
spectacular increases, while the same years
marked the greatest increases in Italy. Although prices have risen at a less rapid rate
during 1919 than during the years of the war
in the United States, England, and France, in




The first and most striking thing to note in a
comparative study of Government control is
the difference in the length and completeness of
control. In the United States, for instance,
price control may be said to have commenced in
August, 1917, and to have ended in respect to
most commodities on December 30, 1918, i. e.,
some 18 months later. The control extended
to the wholesale marketing of goods exclusively, the retail prices being practically uncontrolled. In England, on the other hand,
price control may be said to have begun as
early as the middle of 1915 and is still effective
(February, 1920) in the case of leading food
products and coal. Prices were fixed in the
case of these two types of commodities both at
wholesale and retail and a strict system of
rationing was enforced. In France and Italy
also stringent control of industries began in
early 1916 and in the case of many commodities is still effective.
Two factors have been of primary importance in their bearing upon the release of
industry from control, (1) the extent to
which the Government has become involved
in the purchase and sale of goods, (2) the
probable effect of the release upon the price
of goods which are important for personal
consumption. England has been especially
involved as regards the first point, due to
her large purchases of wheat, wool, meats,
and hides from abroad and the long term of
her contracts for commodities bought in Australia and New Zealand. All the European
countries have been so eager to avoid any
1
Sources: Journal of the Board of Trade, Journal of the Board of
Agriculture, economic and trade journals, for England; Journal Official
de la RSpublique frangaise, Bulletin de Statistique et de Legislation
compar^e, economic and trade journals for France; Gazetta Ufficiale del
Regno d'ltalia for Italy.

244

FEDERAL RESERVE BULLETIN.

further advance in the cost of living that
the prices and distribution of food and fuel
are still for the most part under Government
supervision. Commodities which are used
for business purposes, such as construction
and building materials, have for the most
part been released from control more quickly
than other commodities. Exceptions to this
are found, however, in the case of France,
where it was necessary to continue the control of certain types of timber and glass to
insure a supply for reconstruction purposes.
The abrogation of regulations as to imports
and exports has varied from country to country in accordance with the specific problems
of the respective countries. In England during the transitional period between complete
control of imports and the release of control
(September 1, 1919) commodities having their
origin within the Empire were allowed free
importation, also raw materials and semimanmfactured materials necessary for industry.
Manufactured articles, except those which
were needed for personal consumption, were
restricted. On September 1 all import regulations were removed. Exports were, of course,
encouraged to nonblockaded countries except
in the case of materials needed at home
for military, personal, or industrial consumption, and in the case of goods benefited by
subsidy or purchase by the Government.
The latter regulation has been felt especially
by individuals engaged in such reexport
trades as those in wool and hides. In France,
relaxation of the restrictions on imports
began in January, 1919, and continued until
July, when the only commodities of importance still controlled were frozen meats, cereals,
news print, and ammunition. These were
being imported under Government purchase.
Export control, according to the most recent
information available here, continues in many
important lines, especially foodstuffs, coal, iron
ore, and certain chemicals.
ENGLAND.

Food control.—The ministry of food in England, established in December, 1916, exercised
extreme control over the supply, distribution,
consumption, and price of foods during the
war. It is stated that 90 per cent of the articles commonly consumed in England came
under its control. The system of rationing
necessitated by the war was for the most part
lifted during 1919; price control, both wholesale
and retail, however, has continued to date, and
dealers in many lines are still under license.




MARCH, 1920.

Although the Government is still a large
owner of cereals and imported meats and the
prices of these commodities are under control,
their distribution takes place through ordinary
trade channels, and personal consumption is
free. The Government is making every effort,
so far as we can judge, to avoid further purchases on a large scale. The Australian contract regarding the purchase of wheat and live
stock will expire during 1920, and no agreement has been reported regarding a domestic
cereal guarantee lor 1920. According to the
terms of the 1919 contract, a price was guaranteed the British farmers for their wheat,
barley, and oats. The price obtained on each
individual lot sold by the farmer, however,
was not a fixed price but one arrived at by
ordinary market methods. The difference between this price and the guaranteed price was
to be met by the Treasury.
In order to avoid a serious increase in the
price of bread to the consumer, wheat and
wheat products have been subsidized by the
Government, the difference between the buying price and the selling price being a charge
on the Treasury. No date has been mentioned
for the removal of this subsidy.
Imported commodities in the meat and dairy
products groups are still under Government
control. Large stocks of Australian and Argentine beef are owned by the Government; and
the ministry of food is still purchasing bacon,
ham, and lard abroad and allocating them to
ordinary trade channels for distribution.
Home-killed beef is still controlled and a price
guaranteed to the producer. In spite of this
control, it has been necessary to advance
wholesale prices of meats on several occasions
during the past year. It has been announced
that price control will continue as regards
meats and live stock until June 30, 1920.
Foreign butter and cheese are likewise still
being purchased by the food ministry and allocated to the trade at fixed prices. Retail
prices of imported butter are fixed but not
those for homemade butter. When control
was lifted in the latter case, the retail price
advanced from 2s. 8d. to 5s. per pound in one
day. Control of milk, home-prpduced cheese
and butter, and cream was removed on January 31, 1920.
Sugar is one of the few commodities still rationed. In fact, due to the shortage in the
Government supply, it was necessary to decrease the ration on January 15, 1920. Sugar
is being imported both by the Government and
by individual dealers, the latter apparently
supplying the manufacturing establishments at

MARCH,

1920.

FEDERAL RESERVE BULLETIN.

245

a "reasonable77 price and the former supplying United States. Presumably this policy will be
the distributive trades. The price of the Govern- pursued until the Government stocks are apprement, although recently advanced, is still under ciably reduced.
It should be noted that, although the Govpresent world prices. ^Restrictions regarding
both the supply and the price of tea were ernment has been deeply involved in the wool
removed in March, 1919, constituting probably business throughout 1919, since April 1 the
the first important abrogation of control in the market has been practically free.
food group.
The intensive control of the hide and leather
Hide and leather and wool control,—War-time industry began in 1916, and by the time of the
control of cotton, jute, and hemp was speedily armistice prices had been established for raw
removed after the armistice. The control of hides and leather and in certain cases, such as
wool and of hides and leather had been so far- shoes, for leather products. At the beginning
reaching during the war, on the other hand, of 1919 the fixed prices for domestic heavy
that the Government is still involved in their hides and calfskins were decidedly below
world markets, and the East Indian supply of
transaction.
Wool control began in 1916 with the pur- kips, obtained by the Government at an exchase of the domestic clip and that of Australia ceedingly favorable price, was released at lower
and New Zealand by the Government. Since prices than during the war. As was the case
that time all wool produced at home and in with wool, the fact that the world price of
these dominions has been taken by the Gov- hides was far above that fixed for heavy domesernment, the Australian wool at 55 per cent tic hides in England made it possible for the
above prices in 1913-14, the English at a rate Government to profit very materially by advarying from 35 per cent over the prices of vancing the selling price of the hides. At the
July, 1914 (for the 1916 clip), to 60 per cent same time, the public was obtaining the hides
(for the 1918 clitf). The 1919 domestic clip far cheaper than they could be imported.
was not purchased, but the Australian contract According to the most recent information
is effective until June 30, 1920. During the available here, prices of domestic hides and
war, prices of yarns and fabrics were not con- calfskins are still controlled. Imports are
trolled. The only effort made on behalf of the free, but there is no stimulus for importation,
consumer occurred late in the war in the form of because of the cheapness of domestic hides.
the encouragement by the Government of As regards leather, this branch of the industry
standardized clothing for men at fixed prices. was freed from control in June, 1919.
Immediately after the armistice the wool counCoal control.—British coal control is so incil was formed, consisting of representatives of volved in the question of nationalization of
the employers and workers and of the Govern- industry that it can not be classed with the
ment. This council has advised the board of other strictly war-time controls. At the prestrade on all matters of policy since that time. ent time the price both at the pit head and at
Summed up, the developments of 1919 may be retail is fixed, and the household consumption
stated in the following fashion: Until March 31, of coal is limited. Wages in the industry are
1919, wool was allocated at the prices fixed in fixed by law, and for the year ending March 31,
England during the last year of the war. 1920, profits are likewise guaranteed.
These prices were considerably under world
The price of coal to the domestic consumer
prices. In April, although a certain amount is subsidized by the returns from the export
of wool continued to be rationed by the Gov- trade, where, due to a world shortage of coal,
ernment at prices 7J per cent lower than those very high prices have prevailed. The system
prevailing until then, the bulk of the supply of limited prices which applied to the coal exwas sold at auction at whatever price the wool ported to Italy and France during the war was
would bring. It was thought that the price removed in May, 1919. The foreign demand
would fall with the increase in supply, but in- was so great that it became necessary in Nostead it continued to rise very strikingly, espe- vember, 1919, to limit the amount of coal
cially as regards the finer grades. September which could be exported; at the same time the
1 the auctions were open to foreign buyers, returns were such as to make possible a 10whose demand, added to an abnormal domestic shilling reduction in the price of domestic and
demand, kept prices from declining. At the household coal. Prices of bunker coal used in
present time the British Government is not the coastwise trade were reduced to the level
only auctioning wool in London but also in the of prices of industrial coal. The 6-shilling in-




246

FEDERAL RESERVE BULLETIN".

crease in the pit-head price which occurred in
July, 1919, was not otherwise affected in
December revision of prices.
Other controls.—Control of prices in the iron
and steel industry ceased on April 30, 1919,
with the removal of the Government subsidy.
Due to the shortage of iron and the large home
demand, license control of the export trade
continued until November 21. Since that time
the industry has been entirely free. The
lumber trade is likewise entirely uncontrolled
at the present time; also the cotton, paper,
and rubber industries. The nonferrous metal
industries, on the other hand, are apparently
still subject to license.
FRANCE.

Food control.—Following the principle of
supplying the population with cheap oread,
the price of bread was subsidized by the
Government during the war. The process of
subsidizing applied to all stages in the making
of bread. The price of domestic and foreign
wheat was kept far under the cost price, the
price of flour to the baker was similarly regulated, and finally the price of bread to the
consumer was s(et at a point materially under
cost. For instance, during 1919 the Government buying price for native wheat was 73
francs, for foreign wheat approximately 120
francs, whereas the sale price was 43 francs.
Beginning with March 1, 1920, the Government
subsidy is removed except in the case of foreign
wheat. Seventy-three francs will be the
average price to the native farmer, 76 francs
the price to the miller, the difference to cover
the cost to the Government for handling the
transaction. Flour prices are to be increased
from an average of 63.5 francs per 100 kilos to
93 francs, and bread prices will likewise be
fixed so as to coyer cost. The French Government is thus relieved of a heavy fiscal charge
and the people are obtaining bread at approximately cost price. A special provision has
been made for providing cheaper bread to
famines with two or more children, to the old
and infirm, and to war veterans with 50 per
cent disability.
The same general method of control prevailed with regard to sugar during the war.
Beginning with December 21, 1919, however,
the price of sugar was raised so as to cover the
cost to the Government. Unlike the case
of bread, the consumption of sugar is still subject to control.
Other foods which are controlled are rye, rye
flour, and meslin in the cereal group, coffee,




MARCH, 1920.

milk, butter, and cheese. Meats and edible
oils, on the other hand, have been freed from
control.
Goal prices controlled.—Price fixing and
rationing of coal continues in effect and in
addition freight rates for fuel carried on French
boats are regulated between England and
France. Although the actual importation of
coal is handled by the trade it is subject to the
supervision of the National Bureau for Coal.
Abrogation of controls.—Otherwise French
industry is apparently free from control. The
consortiums created for the purpose of Government purchase and control during the war
and immediately after had practically disappeared by the middle of 1919. As regards
iron and steel, centralized importation of pig
iron ceased on April 1, 1919, and at the present
time the industry appears to be free from control. The importation and allocation of cotton
continued under Government supervision until
October 30, 1919. Operations on the Havre
Bourse were freed from control on June 20,
1919. Between June, 1919, and January, 1920,
contract prices for cotton more than doubled.
The Government sold its stocks of wool at
auction in February, 1919, and since that time
wool has been imported on private account
either from England or South America.
ITALY.

The only information available in this
country regarding price control in Italy is in
the form oi official decrees or their abrogation.
It is possible that in actual practice the rules
laid down in the decrees have been modified.
Unless these modifications have been embodied
in later decrees, we have no knowledge of them.
Food control.—Although general price control had been authorized in April, 1916, it was
not until January, 1918, that extensive powers
were given to the "Commissario Generale per
gli approvigionamenti e i consumi alimentari."
On the latter date, authorization was given
for the requisition of foodstuffs and for the control of their consumption. Between January,
1918, and August, 1919, decrees were passed
authorizing the control of various food products; in August, 1919, the following classes of
foods were still under control: (1) Cereals and
their by-products and leguminous plants, (2)
sugar, (3) meats, (4) milk and its products,
(5) oil, (6) preserved fish. Maximum prices
were fixed for the 1919 crop of wheat, corn,
oats, barley, and rye. Dealings in these commodities were apparently otherwise uncontrolled. Prices of sugar are likewise fixed, as
well as prices of milk, cheese, and butter. Fish

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247

FEDERAL RESERVE BULLETIN".

prices continue fixed, but trading in and prices
lor meats are apparently free.
Other commodities.—Aside from foods, the
most important group of commodities still subject to control are textiles. In September,
1919, the Minister of Industry, Commerce and
Labor was given power to determine the prices
of textiles as well as the quantity of woolen and
cotton goods to be put at the disposal of the
ministry for sale to the less well-to-do classes.
Although the shortage of coal is extreme,
there is, so far as we can discover, no Government supervision of the price or allocation of
the supplies. Until May, 1919, British coal
was sold to Italy at a limited price, but since
that time no preferential rate has been accorded her.
CONCLUSIONS.

By reference to the table at the beginning of
this article, it may be observed that prices in
England in 1919 averaged 140 per cent above
those in 1913, whereas prices in France and
Italy averaged over 250 per cent above those
in 1913. The marked difference between conditions in England and those in the other two
countries may be accounted for in part by the
fact that England controlled large supplies of
important commodities which she was able to
sell during the war and since at less than the
current price. Her coal was sold much cheaper
at home than abroad, hides could be obtained
at less than current world market prices, wool
was cheap until recently, and certain foodstuffs were likewise comparatively cheap.
Italy and France, on the other hand, having
neither ships nor priority in some of the leading
raw materials markets, were forced to pay considerably higher prices. Where these prices
were subsidized by the Government, the cost
eventually will be passed on to the public in the
form of increased taxes.
Bank Deposits, Prices, and Currency.

penditure within the limits of their income, and they
clamor for afremedy. So far as I have seen, the most
popular proposal for reducing prices is to fix a limit to
the currency note issue. It is supposed that if the currency were strictly limited in amount, and at the same
time had a proper proportion of gold backing, prices
would not only cease to rise, but would begin a downward movement toward their former level. In this view
the increase in currency is regarded as the cause of high
prices. But is this really the case? May it not be that
the great increase in currency notes is itself only an
effect of another cause, a mere link in the chain which
ends in high prices? What is the relation between the
increase of currency and high prices? What has caused
the increase of currency? What has caused high prices?
This is the problem I am going to ask you to consider
to-day.
MAIN CAUSES OF THE RISE IN PRICES.

In examining this question I should like to guard
myself at once from misunderstanding. It is an accepted
doctrine that there are three factors governing the price
of commodities—demand, supply, and cost of production.
Although to-day I propose to deal with only one of these
factors—demand—I do not mean to imply that the others
have not their due weight. The supply of commodities
is less to-day than it was in 1914, and in consequence, if
the other factors had remained constant, some rise in
prices would inevitably have occurred from this cause
alone. Again, chiefly owing to higher wages, cost of
production has risen greatly, but in the sequence of
events it has generally followed, not preceded, the higher
prices. Whatever share, however, these two factors may
have had in raising prices there can be no question of
the importance of the third.
SUPPLY AND DEMAND.

Demand, measured by the purchasing power of the
public, has increased enormously. It does not, of course,
necessarily follow that a man spends more because he
has more money in his pocket or a larger bank balance
than usual; yet if we take the community as a whole
we may be quite sure that as spending power grows, the
demand for goods grows with it, and as demand grows,
prices rise. Here, then, is the first step we must take
to solve our problem; we must find the cause of this
increase of spending power.

Following is a part of an address delivered
by Eight Hon. R. McKenna before the general COMPARISON OF PRESENT AND PREWAR CURRENCY FIGURES,
meeting of the shareholders of the London
PRICES, ETC.
Joint City and Midland Bank, Limited, held Before proceeding further it will be well to recall the
in London on January 29, 1920:
estimated figures of currency, bank deposits, and prices

of commodities, as they stand to-day compared with 1914.
First of all I will take the figures of currency. It is
Nothing gives so much concern to the public at the estimated that in 1914 the total amount of currency in
present time as the great rise in prices. Masses of people circulation, i. e., gold, silver, copper coin, and bank
find almost insuperable difficulty in bringing their ex- notes, was £128,000,000. This figure represents the total




THE RISE IN PRICES.

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FEDERAL RESERVE BULLETIN.

amount of currency held by the public, but does not
include currency held by the banks. To-day the corresponding figure is estimated at £393,000,000, an increase
of £265,000,000, or 207 per cent.
As I am giving these figures I may as well state here
that the estimated amount of currency held by the banks
in 1914 was £75,000,000 and in 1919, £191,000,000, an
increase of £116,000,000, or 154 per cent.
BANK DEPOSITS, PREWAR AND PRESENT TIME.

MARCH, 1920.

terms which I will explain directly, deposits arise from
payments by a bank which are neither charged against
an existing deposit nor used for the repayment of an
existing debt to a bank. I am speaking now of bank
deposits in the aggregate, with which alone we are dealing, and not of deposits in any individual bank. Payments by a bank which are not charged against an existing deposit consist chiefly of bank loans or advances.
But they include also all bank investments and all purchases and payments made by the bank for itself and
charged against its own resources. It will simplify the
discussion if we treat bank investments, as we are entitled to do, as loans of a more permanent nature than
the ordinary loan or advance. Similarly the purchase
or discounting of bills may also be regarded ss a bank loan.

Next I will give the figures of bank deposits, but in
doing so I should explain that they do not include Bank
of England deposits. Before the war, the total deposits
of the banks of the United Kingdom, including under
the name deposits—and this is important to note—money
held on current account as well as on deposit account
amounted to £1,070,000,000. The corresponding figure BANK DEPOSITS AND THE MAIN SOURCE OF THEIR INCREASE.
last month was about £2,300,000,000, an increase of
The aggregate, then, of bank deposits is increased by
£1,230,000,000, or 115 per cent.
payments into banks of currency, by bank loans, and by
payments by banks on their own account to meet their
PUBLIC SPENDING POWER COMPARED.
own expenses, as for salaries or to buy new premises. In
The actual spending power of the public is gauged by making a comparison between bank deposits at two differthe total amount of currency in circulation added to the ent dates, we may reasonably leave this last source of
total amount of bank deposits. In 1914 the public increase out of account. Just as payments on a bank's
spending power was £1,198,000,000; to-day it is own account augment deposits, so receipts on a bank's
£2,693,000,000, an increase of £1,495,000,000, or 125 own account diminish them. Payments and receipts have
per cent,
both grown considerably since 1914, but they have both
THE PRICE OF COMMODITIES.
grown at the same pace, and comparing one year with
another, we may fairly set off the total of the payments
I turn now to a comparison of the prices of commodities against the total of receipts.
of everyday use or consumption before the war and at
the present time. The figures are based upon the return
BANK DEPOSITS INCREASED BY BANK LOANS.
issued by the ministry of labor, and are expressed in the
We have now reached the point at which we may say
form of percentage increases over the corresponding prices
of 1914. If we take 100 to represent the cost of living that payments into banks of currency and bank loans, givin 1914, the corresponding figure to-day would be about ing to the word "loan" the widest meaning, are the only
225, or an increase of 125 per cent. In estimating the sources of increase of the aggregate of bank deposits which
cost of living we have included all ordinary expenses, we need consider. At the risk of wearying you with a
and we have taken the commodities forming part of our discussion of a process with which you are probably
everyday consumption in such quantities as we con- already thoroughly familiar, let me give a brief illustrasumed in 1914. Thus we see a marked increase in cur- tion of how bank deposits are increased by bank loans.
rency, in bank deposits, and in the price of commodities. When a bank makes a loan to a customer or allows him an
The spending power of the public and the cost of living overdraft, in the ordinary course the loan will be drawn
show the same percentage increase of 125.
upon, or the overdraft will be made, by a check upon the
bank drawn by the customer and paid into someone's
credit at the same or another bank. The drawer of the
THE GROWTH IN SPENDING POWER AND ITS CAUSES.
check will not have reduced any deposit already in existWe can proceed now to examine the immediate question ence because we are supposing a case in which he has been
before us. What is the cause of the increase in spending given a loan or allowed an overdraft. The receiver of the
power, or in other words, of the increase in currency and check, however, when he pays it into his own account,
bank deposits? I will ask you to consider the growth will be credited with its value, and thereby a new deposit
of bank deposits first. Bank deposits are derived from will be created. The only case when a bank loan does not
two sources, and from two sources only. The first and lead to a new deposit is when the check drawn against the
most obvious source is by payments of currency into a loan is used by the receiver to pay off a loan which he had '
bank. Anyone who takes notes out of his note case and himself at his own bank. In the same way, when a bank
pays them into his bank creates a deposit. The second buys or discounts a bill, the proceeds of the sale are paid
source from which deposits are derived can not be de- into the credit of the seller's account and increase the
scribed with equal simplicity. Stated in comprehensive total of bank deposits; and in the same way also, when a




MARCH, 1920.

FEDERAL EESERVE BULLETIN.

249

bank buys war loan or makes any other investment, the merchant in his turn may have borrowed from his bank to
purchase money goes to the credit of somebody's account pay the manufacturer, and there may be a whole series of
loans from banks, each paid off in its turn as the goods
in some bank and increases the total of deposits.
pass from their primitive state of raw material to their
final destination as finished goods in the hands of the conCOMPARISONS AND REASONS FOR PRESENT INCREASE.
sumer; but when the consumer has paid cash for the
Let us look now at the increase of bank deposits since goods, all the series of loans will in the ordinary course be
1914 and see to what extent this increase is due, respec- liquidated, and there will have been an increase in bank
tively, to payments in of additional currency and to bank deposits only so long as the goods were not finally disposed
loans. In June, 1914, the banks held £75,000,000 of cur- of. In this view of bank transactions, loans by banks,
rency. Last month this figure stood at £191,000,000. and therefore deposits, would only increase in total amount
The banks, therefore, held more currency to the amount as the total of commodities increased. There would be a
of £116,000,000, and to this extent the increase in the greater purchasing power for the time being, but there
aggregate of bank deposits is accounted for by payments would also be a greater supply in process of production.
in of currency, but] it is estimated that since June,
EFFECTS OF THE TRADE LOANS.
1914, bank deposits have risen by £1,230,000,000. If
£116,000,000 of this amount are accounted for by payments
It will be observed that the first effect of a trade loan is to
of currency intofthe banks, there remain £1,114,000,000^ increase deposits, and as the aggregate of such loans, and
which, if the previous analysis be accepted as correct, we consequently of deposits and purchasing power, may be
must attribute to bank loans.
steadily growing in amount, it may be argued that loans of
Let me guard myself, however, by saying that I do not this kind may also drive up prices. To a limited extent
give these figures as absolutely exact, as the total figures this is true.
of deposits given by the banks include not only customer's
deposits, but what the banks term '' other accounts.'' But RISE IN PRICES ONLY PARTIALLY ATTRIBUTABLE TO BANK
LOANS.
the error due to this omission in making a comparison
between any two years is small, and Ifthink we may accept
In periods of active trade we know that bank loans
w. sufficiently accurate the estimate that in round figures
bank deposits have increased by £1,100,000,000 since 1914 increase and prices rise; but the rise in prices attributable
to this cause can never go very far. Traders sometimes
in consequence of bank loans.
assume that banks have an unlimited power of making
advances. They forget that every advance made by a
RELATION BETWEEN INCREASE IN DEPOSITS AND RISE IN
bank comes out of the bank's cash resources. «It is true
PRICES.
the advances return to the banks in the form of fresh
Now that we have cleared so much ground, we must not deposits and thus restore the bank's cash resources to their
forget the real object of our search. We are seeking the former level, but the result is to leave them finally with
relation between the increase of bank deposits, the increase additional liabilities to their depositors without any
of currency, and high prices; and we have got so far as to addition to their bank cash.
see that bank loans are the main source of the growth of
BRITISH BANKS' SOUND POLICY.
bank deposits. As an increase of deposits means an addiHappily
in
this country banks are careful to keep a
tion to our purchasing power, we should expect such an
increase to be followed by a rise in prices. But we must proper proportion between their cash resources and their
guard ourselves here from a generalization which may be liabilities, though the misguided practice known as "wintoo broad. If money is borrowed by manufacturers and dow dressing," which is sometimes indulged in at the end
traders for the purpose of the production or movement of of the year, might of itself throw a shade of doubt on what
commodities, the increase of purchasing power consequent is in truth the very real virtue of our banks.
The moment this proportion reaches a point below which
upon the loans is followed in due course by an increase in
the amount of commodities available, and the rise in prices the management think it should not go, if the strength and
which might be expected from a greater demand is cor- credit of the bank are to remain unimpaired, the bank will
ected by -a greater supply. Let us for a moment examine decline to extend its total of credits. We shall see later
what takes place when a bank makes loans or advances how the cash resources of the banks can be increased, but
in the ordinary way of trade. Suppose the case of a loan without such an increase any great expansion of trade
or advance to a manufacturer who uses the money to pay advances can not occur. It may be said that bank loans
to traders influence prices to no greater extent than the
for raw material or wages, or some other expenses in the
ordinary market fluctuations.
course of his business. When the goods are manufactured
and sold to the merchant, it is expected that the proceeds
LOANS FOR INCREASED PRODUCTION.
of the sale will be used to pay off the bank loan. The
Even when a bank loan is made for the purpose of ac1
A part of this total equal to the increase in the balances of the banks quiring plant the same is true in the long run as in the case
at the Bank of England has been created not by borrowings from the just described. The loan would be outstanding for a
banks, but by borrowing from the Bank of England.




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FEDERAL RESERVE BULLETIN.

greater length of time and deposits would be increased
until the profit made out of the use of the plant was sufficient to pay off the loan, but in due course, owing to the
additional output from the new plant, commodities would
bejincreased in quantity and there would be no permanent
rise in prices. On the other hand, loans by banks which
lead to no increase of commodities tend to raise prices, but
banks do not look upon these loans with favor, and while
they should be ready to assist the country's trade and production by such advances as their customers' capital and
growth of business warrant, they should be and are careful
to limit the amount of their advances for the purpose of
capital outlay and still more for mere accommodation.
SUMMARY OF CAUSES.

Let me now sum up the case so far as we have gone. We
have seen that during the last six years bank deposits have
increased by £1,230,000,000. Of this amount we find that
payments of additional currency into the banks account
forj£116,000,000. We have seen that any other cause of
an increase in deposits except bank loans is not large, and
we have concluded that bank loans have been responsible
for an increase of £1,100,000,000 in bank deposits. We
have seen further that if these loans had been made to
manufacturers and traders in the ordinary course of their
business the increase in deposits, and consequently in purchasing power, would not of itself have caused a permanent
rise in prices, as the additional deposits would have been
followed by an additional supply of commodities. To
whom, then, have these loans been made?
THE GOVERNMENT THE LARGEST BORROWER.

It is impossible to give precise figures, but the best estimate I can form is that of the total of £1,100,000,000,
£800,000,000, including treasury bills, have been lent to
the State and £300,000,000 to trade. The Government,
under the overwhelming necessity of war effort, has been
the great borrower from the banks. The loans to the State
have led to an immense increase of deposits, and as they
have remained outstanding long after the commodities they
were raised to pay for have been consumed they have been
an inevitable cause of a rise in prices.

MARCH, 1920.

EFFECT OF PUBLIC SUBSCRIPTION TO GOVERNMENT LOANS.

But when the public subscribe to Government loans out
of their own resources they always subscribe more than
they save by curtailing their normal consumption. They
subscribe in addition what they would ordinarily save and
invest in any case, and their investment would in one way
or another usually take the form of capital employed in the
production of commodities. The money which would be
so invested is spent by the Government, and consequently
to that extent increases the demand for goods without any
increase of supply either actual or prospective, except in
so far as the Government may themselves have spent the,
money on the erection of plant useful for peace production. With this partial limitation direct loans by the
public to the Government through subscription to war
loans have no effect upon prices. They do not add to the
total of bank deposits. The public must first draw upon
their deposits with the banks in order to subscribe to the
loans, and when the Government spends the proceeds of
the loans the money only fills up the gap in the deposits
caused by the previous withdrawals.
EFFECT OF BANK LOANS TO THE GOVERNMENT.

But quite different effects follow when the Government
borrows direct from the banks or indirectly from the banks
through members of the public who obtain bank advances
to enable them to take up loans. In each case the banks
subscribe by drawing on their balances with the Bank of
England. The money received by the Government is
paid out in due course to meet liabilities to contractors, by
whom again it is paid to the credit of their accounts with
the banks. The customers' deposits are thus increased,
and as the banks in their turn pay the money into their
accounts at the Bank of England, the previous withdrawals
from that bank are made good. Thus the net effect of the
whole proceeding is to increase the total amount of bank
deposits by the exact amount which the banks have lent to
the Government directly or indirectly, and the whole
weight of the additional spending power is thrown upon
prices.
EFFECT OF GOVERNMENT BORROWING FROM BANK
ENGLAND.

OF

THE THREE SOURCES OP GOVERNMENT BORROWING.

In order to get a full understanding of the case it is necessary now to examine the different effect upon prices of the
different kinds of borrowing by the Government. The
Government may borrow from three sources. They may
borrow from the public, they may borrow from the banks,
or they may borrow—and I put this in a category by
itself—they may borrow from the Bank of England. If
anything contributed to a national loan by the public were
saved by them from their ordinary expenditure there
would be no increase in prices. The additional expenditure of the Government would be counterbalanced by the
reduced expenditure of the community.




The third case of Government borrowing which we have
to consider is that of borrowing direct from the Bank of
England. In that case a credit is given by the Bank of
England to the Government, who draw upon it and pay
out the amount to contractors. In due course the contractors pay the money they have received into their
accounts with their own banks, and deposits are thereby
increased. The banks now hold more money, which in
their turn they pay into their accounts at the Bank of
England, and so increase their cash balance. There was
no previous withdrawal in this case from bank balances at
the Bank of England and there is consequently an increase
in these balances exactly equal to the amount of the Bank

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251

FEDERAL RESERVE BULLETIN.

of England's loan to the Government. Here we see both
an increase in customers' deposits and an increase in the
balances of the banks at the Bank of England. These
balances are the basis upon which the banks found their
advances, and an increase in them will necessarily be followed by additional advances whether to their customers
or to the Government, with a consequent further increase
in deposits.
We conclude from this analysis, therefore, that loans by
the Bank of England to the Government have a much
greater effect in raising prices than any other form of Government loan, as they not only immediately raise the total
of bank deposits and consequently of spending power by
the public, but they also increase the power of the banks to
make further advances, which in due course lead to still
more deposits and still greater purchasing power.
SUPPLY AND DEMAND SINCE 1914.

Now that we have examined the different methods Of
Government borrowing and have considered the effect of
each in increasing bank deposits, it remains for us to look
at the course of events as they have actually occurred since
1914 in forcing a rise in prices. At the outbreak of the war,
throughout its course, and right down to the present
moment, the Government have been large buyers of commodities, greatly in excess of their normal demands. The
first consequence of the immense Government purchases
was to stimulate production. Machinery was used to its
full capacity; the number of people employed was greatly
increased; women took the place of men, and there was a
very considerable addition to the total national output.
But enlarge the output as we would, it could not keep pace
with the Nation's requirements. Demand outstripped
supply, and just as it happens when a period of comparative trade depression is succeeded by a trade boom, there
was a natural rise in prices.
DEMAND CAUSES MORE CURRENCY.

At once more currency was needed, partly to pay the
wages of the larger number of workpeople employed,
partly because with higher prices shopkeepers keep more
money in their tills. To the extent that more currency
was issued the spending power of the community was
increased. But up to this point the increase was not
great. A new condition had to be introduced before any
considerable rise could take place. There must be not
merely an increase in currency, the total of which in any
case only represents a small part of the public spending
power; but, far more important, there must be a serious
addition to bank deposits. It was not long before this new
condition arose. To meet the daily growing expenditure
the Government had to borrow freely from the public,
from the banks, and from the Bank of England. It is
unnecessary to recapitulate the effects of this borrowing.

usual consequences followed. Prices began to rise rapidly.
The rise in prices was next followed by general demands
for increased wages. As these now rose the cost of production rose too, and another turn was given to the screw
on which prices were steadily mounting. But higher
wages and higher prices mean a greater demand for
currency. The weekly wages have got to be paid in
legal tender money. In the course of the week the bulk
of the money paid out in wages comes back through the
shops to the banks, and is paid out by them again to meet
the next week's requirements. But, as prices and wages
rise, not all of it comes back, and each week a larger amount
is retained in the pockets of the people, in the tills of shopkeepers, and in the tills and reserves of the banks.
LIMITATION OF CURRENCY IMPOSSIBLE AT THIS TIME.

We may stop here to ask, Is there any stage in this process
at which it would have been proper to limit the issue of
currency? The main demand for currency is to meet the
weekly wages bill. If wages increase, whether because
more workpeople are employed, or because rates are higher,'
additional currency must be brought each week into circulation. If the supply were cut off, a substitute would have
to be found. At the outbreak of the war there was not
enough legal tender money to satisfy our additional requirements and at once postal orders and even postage
stamps were used to make good the deficiency. If men
and women are to be employed and paid, means of paying
them must be found, and an arbitrary limitation of currency would merely inflict intolerable inconvenience upon
the public.
Although, as I venture to think, the increase in currency
is not the cause of high prices, yet I believe the public has
shown a right instinct in fastening upon this increase as a
matter for anxiety and even alarm. Though not the rainstorm itself, it is the gauge which measures the rainfall.
The figures are easily apprehended, and the weekly records
can be readily followed. Those who study them with care
see that every advance by the Bank of England to the
Government is followed by a fresh issue of currency notes.
Once the nation can free itself from the need for these
advances, the rise of prices, so far as it is due to an increased
demand, will cease, and the currency in circulation will
no longer expand. When the advances are paid off prices
will tend to go down, and the currency in circulation will
diminish.
THE DROP IN PRICES.

When we look to the future we naturally ask, shall we
ever get back to pre-war prices and pre-war currency and
bank deposits? If I might hazard an opinion, it would be
that prices will remain permanently on a far higher level
than in 1914. The rise that has taken place is not local.
It is not even European or American. It covers the whole
world. The cost of living in Japan has risen quite as much
RESULT OF INCREASED BORROWINGS.
as in this country. In India and China, where human
Bank deposits increased enormously. There was no wants are much less than with us and where custom plays
proportionate increase in the supply of goods and the a far stronger part in fixing prices, even there the cost of




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FEDERAL RESERVE BULLETIN.

living is much above the pre-war standard. Increased production will bring down prices to a certain extent, but the
purchasing power of the world measured in money can not
be materially diminished. Deflation is bound to be very
slow. Any attempt, indeed, to bring it about n pidly
would cause widespread ruin among manufacturers and
traders. The greatest caution will be necessary m handling our financial machinery and many of our prewar ideas
must be modified in view of the fundamental cnange in
our conditions.

MARCH, 1920.

export to those foreign markets in which we have to meet
serious competition. But it is precisely these markets in
which sales are for prompt payment. We can no doubt
sell all the goods we wish in countries in which sale is
possible only on terms of very extended credit, but exports to such countries do no good to our exchange. Raising the cost of production at home in any degree has a
tendency to drive our exports out of the cash markets into
the credit markets, and to that extent our exchange is
injured.

THE BANK RATE.

DISADVANTAGES OF DEAR MONEY AT PRESENT.

In illustration of what I mean, let us take the bank rate
and consider its operation to-day as compared with pre-war
times. In the conditions we then enjoyed raising the
bank rate was an admirable means of checking excessive
borrowing, restoring our exchange, and restricting the
demand for currency. To-day we can not be certain that
it will achieve any of these purposes. It is conceivable,
indeed, that it may have the opposite effect.
The Government has been a heavy borrower, and still
may be, whatever the bank rate. Raising the rate depreciates all existing Government securities, which makes
it difficult to borrow from the public. As a result the
Government is driven to the Bank of England. We know
the consequences: The total of deposits and bank cash is
increased, prices go up, and the currency is further inflated.
The purpose of raising the bank rate is to prevent borrowing by making it too expensive, and by this means to
restrict deposits and the issue of currency; but when the
borrower is a Government which may have to borrow, no
matter what the price, and which has the power to compel
the Bank of England to lend, raising the rate not merely
fails to achieve its intended purpose but actually operates
in the opposite way. Until the Government has ceased
to borrow, the bank rate can not have its normal effect.
It must be observed, moreover, that these considerations
apply with equal force when the borrowing by the Government from the Bank of England is not to raise new money,
but to pay off maturing debt held by the public or the
banks and not renewed by them.

I can not help thinking that the advocates of dear
money are premature in their policy. They do not take
sufficiently into account the actual circumstances of the
moment. They wish to stop the continual rise in prices
with its concomitant social dangers, and rightly recognizing that the high prices are in a large measure due to
the immense increase in purchasing power consequent
upon the growth of bank credit, they hope to restrict
further bank advances by raising the bank rate. But they
overlook the fact that much the greater part of the inflated
credit is due to borrowing by the Government. Bank
advances to industry, though heavy in the aggregate, are
not greater than industry requires having regard to the
amount of money sunk in the high-priced stock which a
trader has to carry. Dear money is an additional expense
in production and has the effect in itself of raising prices,
but the counterbalancing influence which it might be expected to exercise by the restriction of credit is neutralized
by the repeated outpourings of bank cash due to borrowing
by the Government from the Bank of England.

EFFECT OF RAISED BANK RATE|ON FOREIGN EXCHANGE.

Again, with regard to the exchanges, before the war,
raising the bank rate was bound to send up the valuetof
the pound sterling in foreign exchange. The balance of
trade, including invisible exports and imports, was in our
favor, and if for the moment the poundfsterling had depreciated, it was only because we had lent too much money
abroad. Raising the bank rate made it unprofitable for
the foreigner to borrow in this market, and left our excess
of exports free to assert its natural effect. To-day, the
balance of trade is against us, and while the bank rate
should be at such a level as not to encourage the discounting of foreign trade bills in our market, to raise it above
this point may in existing circumstances injure rather than
benefit our exchange, for dear money adds to the cost
of production and every addition to cost hampers our




The only condition on which we shall be able to check
the rise in prices is that our annual expenditure is brought
within the compass of our revenue. In State as in domestic finance we must learn to make both ends meet, and
the case is not in the least bettered if we only balance our
accounts by selling out capital stock and placing the proceeds to the credit of our revenue account. The expenditure of the Government is tantamount to the consumption
of the quantity of commodities which the money would
buy, and this must not exceed the amount of commodities
the consumption of which the community are compelled
to deny themselves by reason of the taxes they have to
pay. If it does, we run the risk, as is indeed now the
fact, that our consumption may exceed our production.
This is not a plea for additional taxation. Far from it. Our
existing taxation, which is, I believe, higher than in any
other country in the world, is already dangerously near
the point at which thrift, business enterprise, and needful
capital development become seriously impaired. But it
is a plea for economy in expenditure. It is a plea for such
ruthless cutting down or postponement of all financial
outlay by the State as will reduce our expenditure to a
figure less than our tax revenue, for by this method alone
can we hope to restrict the issue of currency, check the
rise in prices, restore our foreign exchange, and reestablish
London in her old position as the financial center and free
gold market of the world.

MARCH, 1920.

FEDERAL RESERVE BUIJLETIK.

253

situation as it existed before the war, the effect
of the war upon the currency, and recommenThe committee on Indian exchange and cur- dations for the future.
rency, appointed on May 30, 1919, to advise
PREWAR CONDITIONS.
with regard to a future policy for India, examJust before the war the Indian currency conining both the effect of the war on the situation
there and the policy which should be followed sisted of British gold coins, silver rupees, subin the future as regards the question of the sidiary coins of silver, nickel, and bronze, and
monetary standard, has reported to the sec- currency notes. The British sovereign and
retary of state for India, and, on February 2, half-sovereign were unlimited legal tender for
1920, the following announcement was made 15 and 7£ rupees, respectively. The currency
notes were in denominations of 5 rupees and
by the India office:
upwards. India possessed a favorable trade
INDIA COUNCIL DRAFTS AND IMPORT OF GOLD balance which was adjusted partly by the importation of the precious metals and partly by
INTO INDIA.
the sale of council drafts on the Government of
"The acquisition rate for gold imported India. The sale of these drafts had the effect
under license into India, which has hitherto of releasing currency in India against the paybeen subject to variation notified from time ment of sterling in London. There was a standto time, has now, in accordance with the ing offer to sell bills without limit at Is. 4Jd.
secretary of state for India's separate an- per rupee, a price which corresponded to the
nouncement relating to the recommendations theoretical gold export point. When the war
of the Indian currency committee, been fixed, broke out there was general dislocation of trade
and the following fixed rates will apply to and business, exchange grew weaker, and there
was a run on Indian gold stocks. Savingstransactions on and after February 2, viz:
bank deposits were withdrawn and there was
"Rs. 10 for each sovereign tendered for some lack of confidence in the Indian note
import, or
issue.
"Re. 1 for 11.30016 grains of fine gold.
"Council drafts will continue to be offered WAR MEASURES AS TO MONEY AND EXCHANGE.
at the secretary of state's discretion for weekly
sale at the Bank of England by competitive
The first of the innovations made in the pretender. The rate for deferred telegraphic war situation related to the control of exchange.
transfers and bills will, until further notice After exchange had recovered from the temporank for allotment with tenders at Is. 16d. rary dislocation consequent upon the outbreak
higher for immediate telegraphic transfers. of war, the demand for council drafts continued
No announcement will be made of the mini- about normal until October, 1916. During
mum rate at which tenders will be accepted, November the amount of the weekly sales inand the secretary of state in council reserves creased rapidly. In order to avoid drawing too
the right of rejecting the whole or any part heavily upon the rupee holdings of the paper
of any tender. In accordance with the com- currency reserve, council drafts were limited in
mittee's recommendations the Government volume and the amount available was fixed
of India will when occasion requires, offer for from time to time on a basis of the rupee resale stated weekly amounts of sterling reverse sources of the Government. This continued
drafts on the secretary of state (including until the close of the war, but after September
immediate telegraphic transfers). The rate 18, 1919, drafts were sold by open competitive
for immediate telegraphic transfers on London tender subject to a minimum rate and subject
will be announced on each occasion by the to the conditions that no applicant may apply
Government of India and will be based on the for more than 20 per cent oi the total offered
sterling equivalent of the price of 11.30016 each week. A second measure that was regrains of fine gold as measured by the pre- sorted to was the raising of the rate for the
vailing sterling dollar exchange, less a deduc- sale of council drafts. This was not done to
tion representing the charges of remitting reduce demand but because of the higher cost
gold. The rate for deferred drafts on London of silver. A series of changes was made in
will, until further notice, be Is. 16d. higher the rate of exchange, dating from August 28,
than the immediate rate as at present."
1917, when the rate for immediate telegraphic
The report of the commission may be sum- transfers was raised from Is. 4Jd. to Is. 5d.
marized under three heads—relating to the Subsequent changes took place until the rate




Currency Reform in India.

254

FEDERAL RESERVE BULLETIN.

reached 2s. 4d. on December 12, 1919. The
secretary of state further announced that he
would sell reverse immediate telegraphic transfers at the rate of 2s. 3 29/32d. in case of
demand. A third measure resorted to was
the purchase of silver. Special measures had
to be taken to increase the supply of the currency.
In February, 1916, the necessity for rupee
coinage became so apparent that the secretary
of state began to purchase silver. In order to
facilitate his operations, the importation of
silver into India on private account was prohibited September 3, 1917. Eventually, in
order to get more silver an arrangement was
made with the United States Government,
which proceeded under authority of the act of
April 23, 1918, the so-called Pittman Act,
authorizing the sale to other Governments of
silver to be obtained from the melting of not
exceeding 350,000,000 silver dollars. Of this
amount the Government of India acquired
200,000,000 fine ounces at 101J cents per fine
ounce. In all, the total purchased from 1915
to November 30, 1919, was 538,005,000 standard ounces. To conserve the silver which had
thus been acquired it was endeavored to protect the currency against depletion by export
or melting. Accordingly, from June 29, 1917,
the use of silver or gold for purposes other than
currency was made illegal and from September
3,1917, the export of silver coin and bullion was
prohibited except under license. Small notes
of 2\ rupees and 1 rupee were also issued in
order to economize silver. Further, in view of
the shortage of silver it was desired to make
the Government stock of gold as large as
possible. Accordingly, on June 29, 1917, all
gold imported into India was required to be
sold to the Government at a price which, being
based on the sterling exchange value of the
rupee, took no account of the premium in
India on gold as compared with sterling. The
gold thus obtained was placed in the papercurrency reserve as a backing against the issue
of additional notes. A premium on gold gradually made its appearance shortly after the
outbreak of the war and precluded its use as
currency except in emergencies.
During the war the amount of gold which
could be obtained by India was limited by the
restrictions on its export from belligerent
countries. The removal of the embargo on the
export of gold by the United States on June 9,
1919, and the freeing of the market for South
African and Australian gold made it possible
to obtain a larger supply. From August 22,
1919, onward a limited amount of immediate
telegraphic transfers on India were offered




MARCH, 1920.

weekly by competitive tender in New York,
and the proceeds were remitted to India in
gold. Toward the end of October the demand
for these transfers fell off and the sales were
discontinued. Arrangements had also been
made for the direct purchase of gold in London, the United States, and Australia, and by
November 30, 1919, about 2,485,000 fine
ounces had been purchased. On September
15, 1919, the rate paid by the Indian Government for gold was fixed so as to include the
premium on gold over sterling as measured by
the dollar-sterling exchange, and has been varied from time to time accordingly. In order
to make the gold thus obtained available for
the public, the Government of India announced at the end of August, 1919, that sales
of gold would be held fortnightly until further
notice and that in each of the first three months
not less than the equivalent of the gold content of 1,000,000 sovereigns would be offered
for sale. Up to November 30, 1919, the equivalent of the gold content of 3,439,000 sovereigns
had been sold.
In order to get an adequate circulating medium, arrangements were early made to enlarge
the fiduciary portion of the note issue. From
the beginning of November, 1915, onward, the
legal limit of the invested portion of the reserve
fund was modified nine tunes, while the gross
circulation of notes increased threefold and
the percentage of metallic backing became reduced by one-half. The issue of small notes of
2£ rupees and 1 rupee also stimulated the use
of paper currency. In order to prevent undue
cashing of notes and prevent runs for redemption possibly leading to inconvertibility, the facilities for the cashing of the notes at district
treasuries were largely withdrawn. The conveyance of specie by rail and river steamer was
prohibited, and an embargo was placed on its
transmission by post. The result of these restrictions was the substitution of notes for
rupees as the common circulating medium.
During the war, moreover, ordinary expenditure and capital expenditure were kept as low
as possible, while from 1916-17 onward additional taxation was imposed. There was also
extensive Indian government borrowing, and
these measures continued to assist in meeting
the heavy demand for Indian remittances.
PROPOSED CHANGES.

The committee finds that the gold exchange
standard has worked well and was beneficial to
India, preventing the fall in the value of the
rupee below Is. 4d., but it finds that the system

MARCH, 1920.

FEDERAL RESERVE BULLETIN".

is not proof against a great rise in the value of
silver. The present advance in silver has made
it difficult or impossible to get the silver required for Indian currency, and as a result the
convertibility of the note issue has been endangered. The committee recognizes that a
stable level of exchange furnishes the most
healthy condition for production and trade
and tliat large changes in exchange are an
evil. It further thinks that it may be preferable to establish stability at the new level of
exchange rather than to try to work back to
the old level. As suggested modifications of
the present system are listed the following:
(1) Issue of a new rupee with a lower silver
content than the present one. The evidence is
said to be against this plan.
(2) The issue of pieces of 2 or 3 rupees of
lower proportional silver content, these to
circulate side by side with the existing rupee
issues, coinage of which would be temporarily
suspended. This plan is said to be subject
to many of the objections previously cited
with regard to (1).
(3) Issuance of a nickel rupee. This is found
objectionable on the same grounds as before.
(4) Stabilization of exchange at a rate
which would insure continuance of the rupee
as a token coin and creation of an inconvertible paper currency, the Secretary of State
being prepared to authorize the suspension of
the purchase of silver, should an advance in
the price of silver continue. As to this the
committee holds that the maintenance of
convertibility is vital.
With reference to the future price of silver,
the committee finds grave differences of opinion. No positive conclusion can be safely
formed as to the maximum price. In consequence, it is believed that a high level of
exchange will be essential for the establishment
of a sound monetary system, although it
recognizes that the acceptance of this view will
have certain important influences both on the
level of prices in India, on India's foreign
trade, her industrial development, and other
important factors. The general conclusion,
however, arrived at by the committee is that
material interests in India will not on the whole
suffer from the fixing of a high rate of exchange
for the rupee. This brings up the question
how the rate ol exchange should be fixed.
The first question in relation to the fixing
of the rate of exchange is whether the rupee
should be established in relation to gold or to
sterling, sterling being at the present time
seriously depreciated as compared with gold.
As to this the unanimous conclusion is arrived




255

at that the stable relation to be established
should be with gold and not with sterling.
Such a conclusion is supported by the fact
that great inconvenience is attached to a currency which is already depreciated and may
depreciate still further. Tne need of stabilizing the rupee at an early date is urgent. The
value which it would be necessary to fix in
sterling at the present time, in order that the
rupee might have an exchange value exceeding
that of its silver content, would be a high one.
If the relation of the rupee to sterling is fixed,
while sterling varies in relation to gold, the gold
value of the rupee will also vary. Free movement of gold into and out of India is found very
desirable, but this can not be attained unless
the rupee has a fixed relation to gold.
In view of these factors definite recommendations as to the course to be pursued can be
made.
(1) The first problem relates to the question
of remittances to and from India, and it is
suggested that as long as existing difficulties
in India and England prevail, it will be advisable to adhere to the system at present in force
according to which the actual amounts of
council drafts sold weekly are fixed with
reference to the Secretary of State's requirements and the capacity of the Government
of India to meet them. So long as sterling is
divorced from gold it is not possible to announce
a fixed rate for sales, but the Government of
India should be prepared to quote the appropriate figure as soon as the demand for
remittance from India is ascertained.
(2) It is believed that the gold import act
should be repealed as soon after a stable ratio
for the rupee has been established, thus allowing free import and export of gold.
(3) The use of actual gold as currency and
the furnishing of it by the Government of
India when demanded by the public should be
restored.
(4) Facilities for minting sovereigns in India
and for refining gold should be provided, and
the holders of sovereigns and Indian gold coins
should be protected against changes in value.
(5) The free movement of silver into and out
of India should be restored as soon as convenient and the import duty on silver should
be eliminated. However, with regard to the
export of silver, the prohibition should be maintained for the present, pending the time when
conditions are more stable, and meantime, in
the event that the purchase by the Government of silver minted in India becomes unnecessary, producers should be allowed free
license to export.

256

FEDERAL, RESERVE BULLETIN.

(6) The custom of Indians in using coins for
hoarding should be gradually discouraged by
an extension of banking facilities, so far as
practicable, and better opportunities for the
investment of savings in Government loans
should be furnished.
(7) It is recommended that the constitution
of the paper currency reserve which protects
the note issue of India should be altered, recognizing, however, the special need for caution
in a country like India. The views of the
Chamberlain Commission (1913-14) on this
subject are indorsed. That commission recommended that the fiduciary portion of the paper
currency reserve be increased and be for the
future fixed at a maximum of the amount of
notes held by the Government in the reserve
treasuries, plus one-third of the net circulation
outstanding. It is recommended that the
statutory minimum for the metallic portion of
the reserve should be 40 per cent of the gross
circulation, but it would be desirable to maintain as large a surplus margin in the metallic
reserve as practicable. As to the fiduciary
portion of the reserve, it is recommended that
the amount held in Indian Government securities be limited to the present maximum under
the temporary legislation, the balance being
held in securities of other governments comprised within the British Empire. It is noted
that the change in the gold equivalent of the
rupee would involve the revaluation downward
of the sterling investments and gold now held
in the reserve.
(8) The location of the paper currency
reserve should for the greater part be in India
where the notes have to be met, although a
part of the securities held in the reserve might
be kept in Great Britain.
SUMMARY OF CONCLUSIONS.

The commission in closing its lengthy and
exhaustive report summarizes the main conclusions at which it has arrived, and the principal of which have already been set forth in
the foregoing pages, as follows:
(1) It is desirable to restore stability to the
rupee and to reestablish the automatic working
of the Indian currency system.
(2) The reduction of the fineness or weight
of the rupee, the issue of 2 or 3 rupee coins of
lower proportional silver content than the
present rupee, or the issue of a nickel rupee,
are expedients that can not be recommended.
If the legal tender limit of one rupee for the
8-anna nickel coin should prove an obstacle to
its free circulation, the question of raising the




MARCH, 1920.

limit to rupees 5 or rupees 10 should be considered.
(3) The maintenance of the convertibility
of the note issue is essential and proposals that
do not adequately protect the. Inaian paper
currency from the risk of becoming inconvertible can not be entertained.
(4) The rise in exchange, in so far as it has
checked and mitigated the rise in Indian prices,
has been to the advantage of the country as a
whole, and it is desirable to secure the continuance of this benefit.
(5) Indian trade is not likely to suffer any
permanent injury from the fixing of exchange
at a high level.
If, contrary to expectation, a great and
rapid fall in world prices were to take place,
and if the costs of production in India fail to
adjust themselves with ecjual rapidity to the
lower level of prices, then it might be necessary
to consider the problem afresh.
(6) The development of Indian industry
would not be seriously hampered by a high
rate of exchange.
(7) The gain to India of a high rate of exchange for meeting the home charges is an
incidental advantage that must be taken into
consideration.
(8) To postpone fixing a stable rate of exchange would be open to serious criticism and
entail prolongation of Government control.
(9) The balance of advantage is decidedly
on the side of fixing the exchange value of the
rupee in terms of gold rather than in terms of
sterling.
(10) The stable relation to be established
between the rupee and gold should be at the
rate of rupees 10 to one sovereign, or, in other
words, at the rate of one rupee for 11.30016
grains of fine gold, both for foreign exchange
and for internal circulation.
(11) If silver rises for more than a brief
period above the parity of 2s. (gold), the situation should be met by all other available means
rather than by impairing the convertibility of
the note issue. Such measures might be (a)
reduction of sale of council bills; (b) abstention
from purchase of silver; (c) use of gold to meet
demands for metallic currency. If it should be
absolutely necessary to purchase silver, the
Government should be prepared to purchase
even at a price such that rupees would be
coined at a loss.
(12) Council drafts are primarily sold not for
the convenience of trade but to provide for the
home charges in the widest sense of the term.
There is no obligation to sell drafts to meet all
trade demands; but if, without inconvenience

MARCH, 1920.

FEDERAL RESERVE BULLETIN.

or with advantage, the secretary of state is
in a position to sell drafts in excess of his
immediate needs, when a trade demand for
them exists, there is no objection to his doing
so, subject to due regard being paid to the
principles governing the location of the reserves.
Council drafts should be sold as now by
open tender at competitive rates, a minimum
rate being fixed from time to time on the basis
of the sterling cost of shipping gold to India.
At present this rate will vary; but when sterling
is again equivalent to gold it will remain
uniform.
(13) The Government of India should be
authorized to announce, without previous reference to the secretary of state on each occasion, their readiness to sell weekly a stated
amount of reverse councils (including telegraphic transfers) during periods of exchange
weakness at a price based on the cost of shipping gold from India to the United Kingdom.
(14) The quantity of gold taken by India
for all purposes in the period before the war
was not disproportionately large haying regard
to her social customs and economic position;
but more productive methods for employing
wealth should be encouraged.
(15) The import and export of gold to and
from India should be free from Government
control.
(16) The Government should continue to
aim at giving the people the form of currency
which they demand, whether rupees, notes,
or gold; but gold can be employed to the best
advantage in the Government reserves, where
it is available for meeting the demand for
foreign remittance.
It would not be to India's advantage
actively to encourage the increased use of
gold in the internal circulation, but it may for
some time be difficult to meet all demands for
metallic currency in rupees, and a more extensive use of gold may be necessary. In
order that confidence may not be disturbed by
exceptional issues, the issue of gold coin in moderate quantities should be one of the normal
methods of meeting demands for currency.
(17) The Bombay branch of the royal mint
should be reopened for the coinage of sovereigns and half sovereigns, and facilities should
be afforded to the public for the coinage of
gold bullion and for the refining of gold.
(18) The obligation of the Government to
give rupees for sovereigns should be withdrawn.
(19) Opportunities should be afforded to the
public to exchange sovereigns in their possession at the rate of 15 rupees per sovereign-at
the time of the introduction of the new ratio.




257

Similar opportunities should be given to
holders of the gold mohur, which should
eventually be demonetized.
(20) The prohibition on the import of silver
should be removed as soon as is convenient.
(21) When the prohibition on the import of
silver is removed, the import duty should also
be removed, unless the fiscal position demands
its retention.
(22) The prohibition on the export of silver
should be retained for -the present with a view
to the protection of the silver currency from
depletion by export.
If the silver mined in India should cease to
be purchased by the Government, its export
should be permitted under license.
(23) Improved banking facilities and increased opportunities for the investment of
savings should be afforded.
(24) No recommendation is made for modifying the present practice regulating the purchase of silver for coinage.
(25) The statutory minimum for the metallic
portion of the paper currency reserve should
be 40 per cent of the gross circulation.
As regards the fiduciary portion of the reserve, the holding of securities issued by the
Government of India should be limited to 20
crores (200 millions). The balance should be
held in securities of other Governments comprised within the British Empire, and of the
amount so held not more than 10 crores (100
millions) should have more than one year's
maturity, and all should be redeemable at a
fixed date. The balance of the invested portion above these 30 crores (300 millions) should
be held in short-dated securities, with not
more than one year's maturity, issued by
Governments within the British Empire.
The existing permissive maximum of 120
crores (1,200 millions) should be retained for
a limited period.
The sterling investments and gold in the
paper currency reserve should be revalued at
2s. to the rupee. The depreciation which will
result from this revaluation can not be made
good at once, but any savings resulting from
the rise in exchange wM afford a suitable
means for discharging this liability in a limited
number of years.
(26) With a view to meeting the seasonal
demand for additional currency, provision
should be made for the issue of notes up to 5
crores (50 millions) over and above the normal
fiduciary issue as loans to the presidency banks
on the security of export bills of exchange.
(27) The silver and gold in the paper currency reserve should be held in India except
for transitory purposes.

258

FEDERAL RESERVE BULLETIN".

(28) As soon as circumstances permit, free
facilities for the encashment of notes should
be given, and the restrictions imposed during
the war should be withdrawn. The Government should have the option of redeeming its
notes in full legal tender gold or silver coin.
(29) No limit can yet be fixed to the amount
up to which the gold standard reserve
should be accumulated and when profits again
accrue on the coinage of rupees they should be
credited in their entirety to the reserve.
(30) Under present conditions Government
should hold such gold as they obtain in the
paper currency reserve rather than in the gold
standard reserve. The gold standard reserve
should when practicable contain a considerable
proportion of gold; but the most satisfactory
course at present lies in keeping the reserve as
liquid as possible by the holding of securities
with early dates of maturity.
The amount of securities in the reserve with
a maturity exceeding three years should not
be increased, and the aim should be to hold
all the invested portion of the reserve in
securities issued by Governments within the
British Empire (other than the Government of
India) and having a fixed date of maturity of
not more than 12 months.
(31) A portion of the gold in the gold standard reserve, not exceeding one-half, should be
held in India; the sterling investments should
continue to be held in London.
TERMS OF SALE.

The following is the third of a series of articles
giving data as to current practice and recent
history of terms of sale in the principal industries. Acknowledgment is due various
branches of the Government and the many
business houses, individuals, trade periodicals,
and trade associations who have courteously
furnished the information.
AUTOMOBILES.

Passenger automobiles and trucks are ordinarily distributed by manufacturers through
branch houses or distributors, who control
a specified territory, and make arrangements
with dealers in that territory, but who also
retail cars locally.
The manufacturer receives cash payment,
usually through use of a sight draft with bill
of lading attached in the case of shipments,
or payment before the car is driven away.




MARCH, 1920.

In many cases the practice is to draw upon
the distributor, who in turn draws upon the
dealer, but in the case of financially strong
dealers the manufacturer draws direct upon
the latter. In general a cash deposit is required, either repayable at the expiration of
the contract between manufacturer and distributor or applicable in specified amounts
toward the purchase price of each car or
truck. While sometimes a flat amount is
stipulated, this is generally calculated roughly
at so much per car contracted for, but the
amounts vary considerably, according to the
manufacturer. Distributors in turn largely
require deposits from dealers in their territory;
in general the manufacturer is not a party to
the arrangement, but in one instance at least
the distributor is required to forward to the
manufacturer all deposits taken from dealers.
In order to assist distributors and dealers
in purchasing their passenger cars during the
winter months, several plans have been devised by some of the larger manufacturers in
connection with carload shipments. A cash
payment per car is required, also certain additional payments for miscellaneous expenses.
To the draft and bill of lading is attached a
separate trust receipt and note for each car.
The draft is drawn on the dealer direct in case
of direct shipment to him. Notes are interest
bearing and mature in from five to three
months, a graded scale according to date of
shipment being arranged, the earlier shipments
carrying more time. Maturities range from
April to June. Payment is required before the
machine is disposed of. This plan calls for
placing the car on the distributor's or dealer's
floor. Instead, it may be placed in warehouse, in which event no trust receipt is used,
but instead, a warehouse receipt is attached to
the note representing the machine in question. The great majority of manufacturers,
however, extend no assistance to the distributor
and dealer, but leave the latter to obtain accommodation from his bank or from one of
the finance companies which have specialized
in this field. Distributors in certain cases
have devised more or less similar plans for
financing dealers, both in connection with
sales of passenger cars and of trucks.
Distributors and dealers in certain cases sell
a considerable number of passenger cars on
time, the partial payment plan being employed.
While certain makers of higher priced cars report little use of such terms in connection with
their product, some makers of popular-priced
cars estimate that over one-half of their
product is sold on time. The size of the initial

MARCH,

1920.

FEDERAL, RESERVE BULLETIN.

cash payment to the distributor or dealer
varies, being stated variously as generally 25,
33 J, and 50 per cent. The balance is paid in
monthly installments, the maximum time limit
being given as 7 to 12 months. Security is
afforded by the use of chattel mortgage, conditional sale, or lease agreement. In one-crop
agricultural sections, such as the Northwest and
South, it is stated that the farmer's note is at
times taken for the entire purchase price of
the car, being made payable at the time of
marketing the crop.
While cash payment to the manufacturer is
practically universal in the case of passenger
cars, a certain proportion of trucks are sold on
time by manufacturers. This is by no means
the case with all manufacturers, however, as a
considerable number require cash payment.
When sales are made on time an initial cash
payment of 25 to 33J per cent is generally
specified, the balance being payable in general
in 12 equal monthly payments, although one
maker has in addition a plan calling for 4 and
another for 18 payments, another specifies instead 7 payments, and another 4 payments,
the last of which is due in five months. Security is afforded by the use of chattel mortgage,
conditional sale, or lease agreement. In practical operation, plans such as these will approximate those indicated in connection with
winter purchases of passenger cars, the manufacturer drawing on the purchaser, releasing
the truck under trust receipt (inasmuch as it
is placed on the floor, and not in warehouse),
and receiving the series of notes, in place of
the one note. Trade acceptances are used in
certain cases in place of notes. One manufacturer gives a discount of 3 per cent for payment
on delivery, instead of making notes interestbearing. One maker of electric trucks sells on
terms of net 30 days, and bills the trucks direct
to the large manufacturing companies to which
they are mostly sold.
Trucks are more largely sold on time by distributors and dealers than are passenger cars.
Estimates in general agree that 70 per cent
is so sold. The initial cash payment to the
distributor or dealer is usually 25 or sometimes
33J per cent, and the balance is generally
divided into 12 equal monthly payments. The
period, however, may vary from 90 days to 18
months. Interest-bearing notes are used. Security is afforded by the same three devices
indicated above in connection with passenger
cars. It is stated that there is a larger proportion of cash sales in the East than in the
Middle West or on the Pacific coast, and that
the duration of notes covering a sale in general




259

will be for a longer period in the latter two
territories.
One of the leading companies has created a
special corporation to assist in financing distributors and dealers. Three plans have been
devised, two in connection with wholesale and
one in connection with retail sales. The plans
are substantially similar to those indicated
above, with the exception that the corporation
finances the sales, instead of leaving the purchaser and seller to make their own arrangements. In the case of sales by producing companies to distributors and direct dealers, notes
are given by the latter to the corporation, maturing in not over six months in the case of
both passenger cars and trucks. The time
varies according to the season and the territory. Where a trust receipt, covering the cars
in question, is used, and cars are stored on the
distributor's floor, a cash payment of at least
15 per cent is required; in the case of the warehouse plan, at least 10 per cent, a sight draft
being drawn for this amount. " Drive-away "
shipments, to be stored on the distributor's
floor, likewise require 15 per cent. In the case
of sales by distributor or direct dealer to subdealer, a trade acceptance is used, the distributor drawing on the subdealer and indorsing the
acceptance to the order of the corporation,
which again pays the distributor or direct
dealer in cash. Maturity, margins, and other
details are the same, the option being given of
either floor or warehouse storage or drive-away
shipments. From the dealer's point of view,
the use of either of the wholesale plans instead
of the retail plan to be described depends upon
the season of the year, the retail plan, for example, being more largely used in summer,
when the dealer does not find it necessary to
place cars in storage. In the case of retail
sales, the purchaser gives the dealer an interestbearing note for the amount, which calls for
regular monthly payments, the time not exceeding 10 months in the case of passenger cars
and 12 months in the case of trucks. The
minimum initial payment is fixed at 30 per
cent, and security is afforded in the usual manner, by chattel mortgage, conditional sale, or
lease agreement, according to the law of the
particular State in which the sale is made. The
dealer indorses this note, ordering payment to
be made to the corporation. The details of the
plan vary according to the individual case.
Thus the size of the initial payment depends
both upon the number of payments specified
and their frequency. Depreciation on the car
is estimated and the user's equity considered.
In case only several payments are made, at

260

FEDERAL RESERVE BULLETIN.

intervals of several months, the initial amount
would be larger than if monthly payments were
specified. Farmers alone are permitted to
make an initial payment of not less than 40
per cent, with payment of one-half the remainder at the close of four months, and the final
payment at the close of eight months, or with
the deferred balance payable in three equal installments at intervals of three months. An
alternate plan is also provided whereby the
farmer may make instead an initial payment
of at least 50 per cent and pay the balance in
one payment within seven months. The corporation resells directly to banks and investors
notes and acceptances arising from transactions
under either of the wholesale plans, and collateral gold notes are issued against obligations
arising from sales under the retail plan, and at
times against notes and acceptances.
Repair parts are generally sold by manufacturers on monthly settlement, due dates ranging from the 10th to the 20th, and no cash discount is allowed. In certain cases net 30 days
is given, in one instance with a cash discount
of 2 per cent for payment within 10 days.
Cash on delivery is also specified in certain
cases.
RUBBER GOODS.

Among the various classes of rubber goods,
automobile tires and tubes are by far the most
important. Aside from sales to automobile
manufacturers, these are largely sold by the
manufacturers, the larger of whom have branch
houses located in important centers, direct to
the retailer or dealer. The proportion so sold
varies, of course, with the individual manufacturer. Some in fact sell through jobbers
only, and others largely through jobbers, but
on the other hand the majority estimate that
from two-thirds to three-fourths of the output
is sold direct to dealers. It should be noted
that under the head of jobbers are included,
in addition to special automobile accessory and
hardware jobbers, also mercantile houses,
wholesale grocers, farm implement wholesalers,
etc. Certain manufacturers place the proportion handled by hardware jobbers at not over
25 per cent of the output passing through the
hands of jobbers, although in the case oi some
manufacturers as manv as 65 per cent of their
jobbers are hardware jobbers. Jobbers have
complained for several years of a lack of profit
in the distribution of tires. In 1916 objection
was raised to the practice among manufacturers
of consigning tires to retailers, which was stated
to be prevalent, but present advices are that the




MARCH, 1920.

practice has been almost entirely eliminated.
The larger retailers located usually in the
larger cities also sell to some extent to small
dealers in neighboring towns. Retailers or
dealers may be either specialized or handle
also other lines, such as hardware, or conduct
garages or vulcanizing shops. Solid tires are
sold to some extent direct to the consumer by
the manufacturer.
The regular manufacturers' terms on tires
are 5 per cent 10th proximo. In certain cases
net terms are 30 days, although frequently no
net terms are specified. One of the larger
manufacturers extends net terms only to automobile manufacturers. On Pacific coast shipments some manufacturers give 5 per cent
10th proximo of the second month on direct
shipments to the dealer, which terms also
obtain in some cases in other territories
where the distance to the branch or distributing point is great. Estimates of leading
companies agree that from 75 to 85 per
cent of the accounts are paid by the 10th
proximo, though this figure, of course, varies
with the several manufacturers. Some companies place the percentage of discounters as
nigh as 96, while one company estimates that
95 per cent of jobbers and 65 per cent of dealers
discount. In general no marked difference is
reported in promptness with which collections
are made from the different types of purchaser,
although several manufacturers refer to the
small garage dealer either as slowest pay or as
presenting the greatest credit risk. One of the
larger companies, although it has not analyzed
its accounts, judges that the strictly automobile accessory house should be the best discounter, as its stock moves more quickly and
a larger turnover of capital is obtained, while
another states that the general merchandise
jobber pays most promptly. It may be stated
in this connection that the larger manufacturers
have an elaborate system of reports from
branches to show the status of collections,
including' in one manner or another the proportion of accounts not discounted, those one
month and two months old, etc. In recent
years a dating for tires shipped during the
winter months, namely, from November 1,
December 1, or January 1 to March 1 or April
1, or in one case from September 1 to January
1, has been introduced. This varies somewhat with the individual manufacturer, and
the same manufacturer may vary his terms
from year to year, both as to period of shipping
and dates of payment. April 1 (and thus due
date of May 10th) is most common, although

MAKCH, 1920.

FEDERAL. RESERVE BULLETIN".

due date of April 10 is sometimes specified.
The three-payment plan is used in certain
cases, one-third of February shipments, for
example, being due March 10, one-third April
10, and one-third May 10, and at times the
due dates for shipments during these months
are April 10, May 10, and June 10 or May 10,
June 10, and July 10. Some manufacturers
permit the buyer at his option to pay on either
single or three-payment plan. Anticipation is
permitted, in certain cases at the rate of 1 per
cent per month, in others at the rate of 6 or 8
per cent per annum. An increasing use of the
trade acceptance is indicated, in particular,
in connection with shipments bearing the
spring due date. One manufacturer allows a
discount of 2 per cent for a 30-day acceptance
dated 10th proximo and 1 per cent for a 60day acceptance, while another states that most
distributors who are granted second 10th
proximo terms give a 30-day acceptance on the
10th proximo. Bicycle tires, during the winter
months, carry a dating somewhat similar to
automobile tires. In the case of consignments,
a special contract is drawn up and an inventory
of the consigned stock taken on the first of each
month. The dealer pays for the tires which
have been sold during the month, in some
cases making weekly reports of sales. While
certain manufacturers note a tendency to
shorten terms, or rather to make prompter
collections, during the past decade, others
report no change in this regard.
While a considerable number of companies
confine their activities entirely to the manufacture of tires, others make to a greater or
lesser extent the various other classes of rubber
goods. It is stated to be the tendency for the
larger companies to enlarge their products
beyond tires and tubes, although some companies have commenced with other lines.
The large companies manufacture practically
all lines. Certain of these products, such as
druggists' sundries and mechanical goods, will
be distributed largely through jobbers, although
one large manufacturer sells only 30 per cent
of his output of mechanical goods to jobbers,
as against 70 per cent to consumers. On the
other hand, rubber footwear is sold in large
part direct to retailers. Mechanical goods as
a whole are largely sold on terms of 2 per cent
10 days, net 30 days, or net 60 days. Occasionally large accounts receive 2 per cent
second 10th proximo, with no net terms.
Jobbers of thresher belts in some cases receive
a dating, May shipments bearing a 2 per cent
discount if paid November 10. Shipments of
garden hose from about November 1 to April




261

1, bear a spring dating of May 1 or in some
cases April 1. Fire hose, which is sold largely
to municipalities, bears terms of net 4 months,
or net 12 months, interest being added at the
rate of 6 per cent per annum in the latter case
for the additional time taken. Insulated wire
is sold on terms of 1 per cent 10 days, net 30
days. Druggists' sundries bear terms of 2 per
cent 10 days, net 60 days, no special dating
being given. Rubber footwear datings differ.
April 1 to November 1 shipments are due
December 15 net. November and December
" fill-in" shipments in one case carry terms of
net 30 days; in another due dates of January
15 and February 15. The manufacturer
employing the former terms provides that
January 1 to April 1 shipments are due net
May 1. Shipments of tennis shoes, etc., from
January 1 to May 31 are due net July 1, and
shipments during all other months are due
net on the 15th of the second month following.
Soles and heels carry terms of 2 per cent lOrn
proximo, or 5 per cent 10th proximo. Rubber
clothing carries a discount of 2 per cent.
January to March shipments are due April 10.
April and May shipments are due May 10 and
June 10, respectively, while shipments from
June to September, inclusive, are due October
10 and shipments in the three following months
have due dates of November 10, December 10,
and January 10, respectively. All datings are
subject to anticipation, although the rate may
vary according to the product in question.
Thus 12 per cent may be specified in the case
of footwear and only 6 per cent in the case of
clothing. On all these products proximo terms
are employed to some extent in addition to the
cases mentioned. As would be expected, the
percentage of discounters on mechanical goods,
druggists' sundries, and insulated wire is
stated to be considerably less than on tires.
One manufacturer states that buyers of mechanical goods in general do not discount, as
the average purchase is small and the discount
not large enough to be an incentive. More
than half of footwear customers are reported
to anticipate.
AUTOMOBILE ACCESSORIES.

At the present time there is little uniformity
in marketing methods, and the latter are in a
state of change, due both to the rapid growth
of the industry, to the variety of products
included under this head, and to the large
number of manufacturers. A larger proportion of sales are made by manufacturers direct
to retailers than is usual in other lines, although

262

FEDERAL RESERVE BULLETIN".

the proportion varies greatly for the different
products. If figures are to be given, it may be
said that 10 per cent of the output of manufacturers of automobile accessories goes to manufacturers of automobiles, 25 per cent to jobbers,
.and 65 per cent to dealers.
Terms of sale of manufacturers in general are
2 per cent 10 days, net 30 days, to both wholesalers and retailers. Proximo terms, usually
the 10th but in some instances the 15th or 20th,
are permitted in certain cases to the larger
purchasers, such as automobile manufacturers
and those having a number of shipments
during the month. In this connection, some
manufacturers discriminate between small and
large purchasers, giving the former 2 per cent
10th proximo and the latter 2 per cent 25th
proximo, often requiring a contract in such
cases. Some manufacturers allow or request
their customers to use a 30, 60, or even 90
day trade acceptance with varying or no discount. On lines other than tires, dating is not
a general practice, but some manufacturers
give datings on large orders, often requiring
a long-run trade acceptance to accompany this.
The exceptions to the regular terms which
are found are not as a rule confined to particular products which become conspicuous as
bearing other than the regular terms. Rims,
however, bear the same terms as do tires, being
quoted 5 per cent 10th proximo by the manufacturer and 5 per cent 10 days, net 30 days,
by jobbers. Automobile upholstery and
leather goods are generally sold on terms of
2 per cent 10 days, net 60 days, net terms of
30 days being the exception. Little uniformity
of terms on bearings is noted, both net 30 days,
and 5 per cent 10 days, net 30 days, being noted
in addition to the regular accessory terms of 2
per cent 10 days, net 30 days. Automobile
bodies are sold on a contract basis, 25 per cent
cash with order and balance sight draft bill of
lading attached being, for example, specified.
Jobbers of automobile accessories are of
several types. Distinction is made between
legitimate jobbers and semijobbers, the latter
of whom are not financially able to take their
discount, and who do some retail selling. Development during the past few years has been
twofold; in the first place, a class of accessory
jobbers has become segregated from allied lines
and has specialized in the field with increasing
financial strength; on the other hand, an increasing interest has been shown by the hardware jobber in the automobile accessory business. Retailers are of three types—specialty
dealers, garage men, and hardware retailers.
The former two as a rule are poor credit risks.




MARCH, 1920.

In addition, the specialty retailers have a
tremendous overhead, business being very,
though increasingly less, slack in the winter
months, and for this reason manufacturers of
accessories have been anxious that the retailers
of hardware should handle accessories. The
garage man will naturally be the largest buyer
of products which require installing, while the
specialty retailer and hardware retailer will
carry the balance. In 1915 it was estimated
that about 25 per cent of the automobile
accessories went through the regular hardware market. The retailer of hardware and
the garage and car dealer do most of the accessory business in the South and West, while in
the East a large proportion of it is done by the
specialty retauers.
Terms of specialized accessory jobbers in
general are the same as manufacturers' terms.
While they themselves in large measure take
the discount, their customers take the net 30day terms, although terms to garage men are
often C. O. D. Hardware jobbers, however,
in general apply the regular hardware terms
of 2 per cent 10 days, net 60 days, also to the
automobile accessories they handle, other than
tires, for which jobbers' terms are almost
universally the same as those of the manufacturers. Proximo terms are employed in
some cases. Some business is done on a 30day trade acceptance basis without interest.
The only exception to the general terms is
found in the case of heavier shop equipment
to garage men where sale is made on contract
covered by deed or title, notes being taken and
equal payments over 6 to 8 months specified.
An alternative method where less time is
required is to use the trade acceptance, splitting the payment by taking acceptances for
30, 60, and 90 days.
ELECTRICAL PRODUCTS.

Considerable variety is found both in terms
of sale and in marketing methods of electrical
products. Net terms granted by manufacturers are either 30 days or 60 days, while the
discounts for cash vary on different articles,
at the two extremes being articles bearing no
discount and those on which 5 per cent is
given. Proximo terms are given in certain
cases. On the average, on commodities
handled through jobbers, terms are 2 per cent
10 days, net 60 days, to jobbers and retailers
and 2 per cent 10 days, net 30 days, to consumers. Very large orders and orders of bulky
apparatus, whether or not handled through
middlemen, are sold largely on a contract

MARCH, 1920.

FEDERAL RESERVE BULLETIN".

basis. Datings are rare, but in certain cases
provision may be made for a series of trade acceptances, each for one-third the amount, and
maturing in 30, 60, and 90 days, respectively.
Turning to marketing methods, it is estimated that in general 65 per cent of the output of manufacturers is sold to jobbers, 25
per cent to dealers, and 10 per cent to consumers, and about 75 per cent of the jobbers'
sales are to dealers as against 25 per cent to
consumers. There are many small manufacturers who sell directly to the consumer. Distributive methods vary greatly with the individual products. Considering wires and
cables, 50 per cent of the output of electrical
iron wire is sold direct from the manufacturer
to the consumer and 50 per cent through the
jobbers, the article never being sold by retailers. Consumers are principally railroads
and telephone companies. Seventy-five per
cent of weatherproof wire is sold by manufacturers to consumers, who are central stations
and street railways, and 25 per cent goes to
jobbers, who sell to the same trade. The
article is never sold to retailers. Rubber
covered wire is used in building. Twenty per
cent goes direct from the manufacturer to the
consumer, 20 per cent to the contractors, and
60 per cent to the jobber. The contractors,
who are in this case the retailers, in turn buy
80 per cent of their rubber-covered wire from
the jobbers, getting the remainder of their
supply from the manufacturers. Electrical
wiring devices in general are largely sold to
jobbers, who in turn dispose of half of their
product to retailers, who in this case are the
contractors, and the other half to consumers,
in the form of central stations, large industrials, etc. This distribution will vary for
individual products, such as fuses and switches,
of the output of which manufacturers sell
70 per cent to jobbers, 10 per cent to retailers,
and 20 per cent to consumers. Approximately
half the retailers of such products handle also
lines other than electrical supplies.
Lighting fixtures are becoming more standardized. In the past there were few jobbers,
the product in this line going formerly direct
from manufacturers to the contractors, due to
the fact that there was such a variety of
models. The jobber is now becoming a factor,
so that at present from 20 to 40 per cent of the
manufacturer's sales are to the jobber, an equal
volume to the retailer, and 40 per cent to the
consumer. Approximately 70 per cent of the
retailers of these products handle also lines
other than electrical supplies. Manufacturers
of incandescent lamps sell upward of 25 per




263

cent of their product to consumers, who in
this case are the central stations, and the
latter do some reselling. Fifty to 75 per cent
is sold to jobbers, who in turn sell one-half
their products to consumers and one-half to
retailers. It is to be noted that the jobber
sells to a different type of consumer than does
the retailer.
The bulk of switchboards, especially the
larger units, are sold directly by manufacturers
to consumers, who in this case are central stations, and large industrials (possibly 2 per cent
of the manufacturer's output being sold to
jobbers) and 5 per cent to retailers, who resell
to industrials only. Telephones and telegraphs
are sold direct by the manufacturers to consumers.
Eighty per cent of the output of insulating
material is sold by the manufacturer to the
consumer, only 20 per cent being sold to jobbers
and none to retailers.
Large transformers are sold direct by the
manufacturer to the consumer. The smaller
transformers are rarely sold direct to retailers,
and only from 10 to 30 per cent of the output is
sold to jobbers. Central stations selling power
do not supply their customers with transformers; these buyers, therefore, buy from
contract dealers.
Manufacturers of electrical measuring instruments sell 5 per cent of their product to jobbers, from 5 to 20 per cent to retailers, and from
75 to 90 per cent to consumers, who are lighting
stations, street railways, and automobile manufacturers. The bulk of the electrical measuring
instruments going to the first two classes are
sold with switchboards. Automobile manufacturers are buyers of 50 per cent of the electrical
measuring instruments figured in numbers and
10 per cent, if figured according to price. The
electrical measuring instruments handled by
retailers will be for replacement purposes on
automobiles only.
Thirty to 60 per cent of the output of storage
batteries is sold by manufacturers to manufacturers of automobiles, 20 per cent to jobbers,
and 30 per cent to retailers, which 30 per cent
is used by the consumer, the automobile owner,
for replacement purposes only. Twenty-five
per cent of the total output of storage batteries
is sold to central stations, and 15 per cent to
manufacturers of electrical trucks. Dry-cell
batteries are sold practically exclusively by
manufacturers to jobbers, who in turn sell half
to dealers and half to consumers.
Manufacturers of ignition equipment sell 90
per cent of their product to manufacturers of
automobiles, trucks, motorcycles, stationary

264

FEDERAL RESERVE BULLETIN.

engines, etc., and about [8 per cent to
jobbers.
Large motors and generators are sold direct
by manufacturers to consumers. There is
generally but one middleman engaged in the
distribution of the smaller motor types (under
250 horsepower); up to 10 per cent is sold to
jobbers (who if they do handle them, act as the
retailer); up to 18 per cent is sold to retailers,
and the balance to the consumer. About 70
per cent of the sales of motors under 50 horsepower to consumers are handled through dealers
acting as agents of the manufacturer.
Rotary converters are sold direct by the
manufacturer to the consumer. Rectifiers are
almost exclusively sold to jobbers, who in turn
dispose of half their product to retailers and
half to consumers.
Electrical appliances are never sold direct to
the consumer, all of them sooner or later going
through the retailer. Central stations still do,
though to an increasingly smaller extent, a veryconsiderable retail business in their appliances.
From 60 to 80 per cent of these products are
first sold by manufacturers to jobbers.
Turning now to the terms of sale of the individual products, jobbers in general give to their
customers the same cash discounts as they
receive from the manufacturers, but they may
vary the net terms. The jobbers' regular net
terms are 30 days, while he may be quoted net
60 days, net 30 days, or no net from the manufacturer. At the present time manufacturers
are having considerable difficulty in keeping
jobbers supplied, and consequently have considerable power in making their own terms,
while, on the other hand, competition among
jobbers still remains keen enough to make
them inclined to give concessions to their customers. It is understood that these customers
in many cases run beyond the nominal net
period. Offsetting the strategic position of the
manufacturer is the rapid growth of the industry and the greater number of specialty devices
than in older lines, which make the service of
the jobber not only of greater value but
peculiarly essential to the successful introduction of these products. In the jobbing of specialties it is stated that the jobber has been
particularly favored due to the absence of
reputable retail dealers, and the result has
been that the jobber, receiving regular jobbing
price quotations, has done the retailing himself.
However, this practice is on the decline due to
the development of a class of reputable retail
dealers.
The products of the industry may be classified into the following five groups, according to




MABCH, 1920.

the cash discount allowed. These discounts
are quoted both by manufacturers and by
jobbers to all their customers.
1. No cash discount, net 30 days.
Telephone lead covered cable.
Poles.
Power motors and fans.
Transformers.
Railway supplies.
Telephone apparatus.
Testing instruments.
Meters.
High-tension insulators.
Washing machines.
Sewing machines.
Vacuum cleaners.
Dishwashers.
Arc lamps.
2. One-half per cent, 10 days.
Annunciator wire.
Bare copper wire.
Magnet wire.
Damp-proof office wire.
Weatherproof wire.
3. One per cent, 10 days.
Cross arms.
Lamp cord.
Rubber covered wire.
Lead covered wire.
Line hardware.
4. Two per cent, 10 days.
Heating material.
Condulets.
Dry batteries.
Storage batteries.
General supplies.
Porcelain (except high tension).
Sockets and receptacles.
Snap and push switches.
Klaxon horns.
Hughes ranges.
Ironing machines.
Incandescent lamps.
5. Five per cent, 10 days.
Condulet outlet boxes and covers.
Flexible metallic conduit conductors and fittings.
Rigid iron conduit.

Certain variations from these cash discounts
exist. Manufacturers' sales of small transformers and small motors sometimes carry
2 per cent, while very large jobbers of motors
at times receive 5 per cent discount for payment within 10 days. In the special cases of
selling motors through the manufacturer's
own agent, the following terms obtain: 5 per
cent 60 days if the agent's credit is undisputed
or 5 per cent 30 days, net 60 days, if his credit
standing is uncertain. Some electrical measuring instrument manufacturers quote 2 per cent
10 days, and some incandescent lamp manufacturers quote 1 per cent discount for cash
on delivery. In addition, net terms only are
sometimes given on rectifiers, insulating material, and ignition equipment. The last named
in certain cases also bears 1 per cent 10 days,
and two to three years ago 2 per cent was given

MARCH, 1920.

on sales by certain manufacturers. Porcelain
material about two years ago carried a discount
of 5 per cent 10 days.
Turning to the net terms of the manufacturers to jobbers^ retailers, and consumers,
respectively, which, as has been pointed out,
are in general net 60 days, net 60 days, and
net 30 days. There are some regular deviations. Electrical wiring devices (including
switches, fuses, wall switches, sockets, plugs,
etc.), batteries (storage and dry), small motors,
and electrical appliances, all of which are not
sold directly to consumers, are regularly
quoted net 60 days to jobbers and net 30 days
to retailers.
The following exceptions to the regular net
terms were noted: Some manufacturers of
rubber-covered wire quote net 30 days to all
three classes of purchasers, while some manufacturers of lighting fixtures give net 30-day
terms to the jobber, net 60 days to the retailer,
and net 30 days to the consumer, and similarly
with rectifiers. Insulating material and measuring instruments are sometimes quoted,
respectively, net 60 days, net 30 days, net 30
days, while these products may also be sold on
net 30-day terms to all three classes of purchasers. Small transformers are sometimes
sold net 60 days to jobber, net 30 days to
retailer, and net 30 days to consumer. Some
small motor manufacturers sell on terms of
net 30 days to jobbers and retailers. Instances
of terms of net 60 days as well as net 30 days
to all three classes of purchasers are found on
snap and push switches, fuses, and circuit
breakers. Small switchboards are sometimes
quoted net 30 days to all classes of purchasers.
The balance oi the products are sold on a
contract basis. This applies to rotaries, large
motors, and generators, large transformers,
and large switchboards; that is, products
which are usually sold direct to consumers,
involving more or less installation work. Contracts are also used in the case of large orders
of any of the previously mentioned products.
Standard contracts call for 50 per cent cash,
sight draft, bill of lading attached, 40 per cent
in 30 days, and 10 per cent in 60 days. Another
form requires 60 per cent on shipment, 20 per
cent in 30 days, and 20 per cent in 60 days.
These terms, however, are varied in accordance with the credit standing of the customer
as well as the progress of the installation work,
the last payment in the latter case being so
arranged as to fall due when the work is completed. Selling goods on consignment is an
exception, but some large manufacturers of




265

FEDERAL RESERVE BULLETIN.

fan motors sell their product on this basis.
Some manufacturers grant 10th proximo terms
to approved customers or to those settling
regularly on a monthly basis. In certain cases
semimonthly settlement, for example, on the
10th and 25th, is provided. On large orders
of electrical wiring devices the standard contract terms are one-third on delivery, onethird in 30 days, and one-third in 60 days.
The regular net terms of jobbers are 30 days,
while the discounts granted are those already
indicated. Interest is generally at the rate of
6 per cent after the due date is passed, and
overdue bills are subject to sight draft without
notice. The trade acceptance is used more
by jobbers in this line tnan by manufacturers
and as a matter of fact is quite generally used.
Thirty-day acceptances are most common,
which are mailed with the statement on an
average 15 days after the sale, so that the
settlement occurs in 45 days, which corresponds to the current collection period on open
accounts. Some very favored customers may
have a 60-day trade acceptance provided.,
instead of the 30-day. Jobbers may allow
their large customers to settle on the 10th
proximo.
COAL AND COKE.

Anthracite coal is generally sold by the railroad coal companies through sales agents direct
to manufacturing plants and to dealers.
While several of the independent producers
sell to retailers direct,1 the greater
number
market their coal through " jobbers'7 on a commission basis, and a few sell outright to jobbers and retailers, disposing of their product
from w ee k to week to the highest bidders.
A considerable amount of coal is consigned by
roducers to local wholesalers or retailers,
obbing, in the restricted sense of sale by carload or barge load without physical handling
but with outright purchase of the coal, thus
excluding sales agencies, is on the whole relatively small in the case of anthracite, but a
considerable proportion of bituminous coal is
handled through jobbers. The methods of
transacting the business are less rigid and
definitely fixed in the case of bituminous
coal, in particular with regard to retail
dealers who handle the same. Jobbers in
large part, however, do not rigidly confine
themselves to handling only either anthracite

S

1 The data relative to anthracite coal contained in this paragraph have
been taken from the Report of the Federal/Trade Commission on Anthracite and Bituminous Coal, June 20,1917.

266

FEDERAL RESERVE BULLETIN.

or bituminous. With respect to anthracite
there is a considerable overlapping between the
two classes of jobbers. The greater number
of jobbers supply the local trade only,
although a few maintain branch offices at
various points. In certain centers, for example, Buffalo, Detroit, and Chicago, there
exist also local wholesale trestle and dock
companies, who in some cases do also a retail
business.
In certain sections of the country, the movement of coal is distinctly seasonal, whereas in
other sections there is storage of coal to a greater
or lesser extent. The territory beyond the head
of the Great Lakes is very largely supplied by
shipments up the lakes during the summer,
which are stored on the docks and shipped out
during the fall and winter months as needed.
Some all-rail coal from Illinois and Indiana
fields, however, goes to the Northwest during
the winter. To a certain extent winter supplies of coal are moved into New England during the summer, although both rail and water
line coal also move in during the winter.
There is some storage of coal in northern New
York. Bituminous coal is stored to some extent during the summer by business houses,
but over the remainder of the United States
the movement of coal is largely seasonal. As
is well known, storage is more difficult in the
case of bituminous coal than in the case of
anthracite, both because of the deterioration
of the softer bituminous and because of danger of spontaneous combustion when the coal
is not properly stored.
Distinction should be made in the methods
of conducting business between the territory,
roughly, east of a line north and south through
Erie and Pittsburgh, and the territory west
thereof extending to the Rocky Mountains.
In the East the tonnage is larger, the qualities
of coal differ, and methods of merchandising
are entirely different from those in the West.
In the East supply and demand are more
nearly equal, whereas in the western section a
buyer's market almost uniformly prevails.
There is a corresponding difference in the degree to which business terms may be insisted
upon.
Producers' terms on anthracite are practically universally net 30 days. In certain
cases proximo terms, for example, the 15th,
are provided. Provision is made for the
requirement of payment in advance for further
shipments if the credit of the customer is
impaired, or cancellation of the contract at the
seller's option in case the amount is unpaid.
In certain cases anticipation at the rate of 6




MARCH, 1920.

per cent per annum is provided, or one-half
per cent is given for payment within 10 days.
The same rate of interest is charged on overdue accounts. The coal which is purchased
outright by dock companies at the head of the
Great Lakes, rather than handled on consignment, generally bears terms of net 60 days
from date of bill of lading.
Bituminous coal is generally sold by producers on proximo terms, the 15th being perhaps most frequent, although dates range
from the 10th to the 25th. In some cases
settlement twice a month, for example, by
the 5th and 20th, is required. While proximo
terms are customary in the case of contract
business, in some cases net 30 days is specified, and it is largely used for spot or open market sales. Longer terms, such as 60 days, are
given in some cases, although producers in
many cases use the uniform sales contract containing a clause similar to that contained in the
anthracite producers' contract providing for
cancellation of the contract at the seller's
option in case the account is unpaid, or the
credit of the purchaser is impaired, also that
accounts 10 days overdue are subject to sight
draft with interest from time of maturity.
This by no means implies, however,
that settlement is prompt in all cases.1 From certain
sections it is stated that purchasers largely run
beyond the due date, one producer stating that
payments in general are effected from 15 to 45
days thereafter, and that although it is endeavored to collect interest for the extra time taken,
it is next to impossible to do so. In one field
it is reported that an account is rarely considered old until 60 days past due date. From
certain fields it is stated that few purchasers
make payments until the coal reaches its destination, and some only on the 10th proximo
thereafter. Payment is thus made on the
basis of coal received rather than on coal
shipped. The railroads are stated often to take
up to 90 days, while in certain cases longer
terms are given them than are given other
purchasers. Thus in one field payment by
them is specified from the 15th to the 25th
proximo, whereas other purchasers are required
to effect payment by the 10th proximo, and in
another field terms to the railroads call for
payment at the close of the month for shipments during the previous month. In several
western fields large steam users receive up to
60 days, whereas 30-day terms are specified
for ordinary consumers and dealers. Lake
1
Operators at times may receive payment in less than the customary 30 days, in order to encourage shipments or to assist in financing
them.

MARCH, 1920.

and tide water shipments, on account of longer
time between date of shipment and actual consumption of the coal, bear longer terms than
do ordinary shipments, net 30 or 60 days from
date of loading at the port being frequent,
although in some cases interest at the rate of 6
per cent per annum is charged for time beyond
30 days. When this extra time is given, the
purchaser is stated to usually sign an acceptance. Discounts for cash are very rare. In
some cases anticipation is allowed at the rate
of 6 per cent per annum, in other cases % per
cent 10 days is given, while in one of the
southern fields cash discounts up to 2 per cent
are reported.
Coke, in particular by-product coke, is produced by certain of the large consumers themselves, or by plants which they control. All
coke is generally sold on terms calling for payment by the 20th proximo, but in some cases the
10th, 15th, or 25th is specified. Certain purchasers are stated to elect to make settlement
twice a month instead. While sight draft with
bill of lading attached, as in other industries, is
generally used only in the case of poor credit
risks, one southern producer allows a cash discount of 1 per cent where this method is employed in place of the regular proximo terms.
Furnace coke is largely sold to steel producers,
but there are many small foundries which
purchase foundry co£e, and at times the financial responsibility of some foundries is somewhat impaired, but ordinarily little difficulty is
found in making collections. In very rare
cases, a note is accepted for foundry or domestic coke that is put into stock for future use.
There have been no general changes in terms in
the coal and coke industry for 15 years or more.
Wholesalers' terms on both anthracite and
bituminous in large measure parallel operators'.
Proximo terms are largely employed, such as
the 10th and 15th. Anticipation is permitted
in certain cases, such as for tidewater coal at
New York, at the rate of 6 per cent per annum,
corresponding to a cash basis of 1 per cent.
Spot sales on anthracite at New York bear the
same terms as contract sales, namely, 15th proximo (formerly the 25th), although sales are often
made for cash, and a slightly lesser price, such
as 5 cents per ton, is quoted in such cases. The
average purchaser of bituminous is said to be
less prompt than the average retailer of anthracite, and accounts, e. g., at New York and
Boston, often run to 90 or 120 days. A closer
check on credits during the last two years is
reported from Kansas City. When business is
normal it is stated from Boston that anthracite
wholesalers often extend considerably longer




267

FEDERAL RESERVE BULLETIN".

than 30 days, but in times of shortage the
prompt collections made by retailers enable
prompter payment of wholesalers. It is stated
in a recent study* that the extension of credit
has some influence upon the choice of coal
handled by the local dealer, and practical and
exclusive connections are made when he is
carried by the wholesaler.
PETROLEUM.

The commercial organization of the petroleum industry
at the present time is exceedingly
complex.2 Whereas in the earlier days of the
industry there was a rather well-defined division of the field into production, transportation, refining and marketing (though the latter
two were often combined), there is now considerable combination of all four classes of
business. There is an increasing tendency for
the larger units to sell to consumers, and the
systems of service and filling stations are being
steadily extended, as well as the tank-wagon
service. In the remote sections there is, of
course, the greatest dependence upon the local
dealer.
The method of marketing varies with the
type of product. Crude oil is purchased by
refiners to some extent, although the larger
companies obtain a considerable supply from
their own wells or those of affiliated companies.
Refiners to some extent sell the various petroleum products to one another. Aside from
such sales, the lighter products, such as gasoline and kerosene, as well as lubricating oil,
are sold by refiners to jobbers and retailers,
and direct to large consumers. Fuel oil (including also gas oil and road oil), on the other
hand, while often sold to jobbers, is usually
sold direct to consumers, estimates placing the
amount so sold at upwards of 80 to 90 per
cent of the output. In certain cases refiners
dispose only of their surplus products, for
example, fuel oil to jobbers, while selling the
other products direct to retailers and consumers. In the Middle Western States a
large number of relatively small refiners have
grown up, who depend to a great extent upon
separate jobbers for the marketing of their
roducts, which, however, include relatively
ttle lubricating oil. Jobbers' customers are
stated by some to be considerably smaller than
customers of refiners. Middle Western refiners'
sales to jobbers vary in amount from 1 to 1,000
tank cars, and sales of from 100 to 200 cars

E

1 Ibid.
2 Certain of the data on this subject have been taken from the studies
of the FederalTrade Commission, in particular the Keport on the Price
of Gasoline in 1915. April 11,1917.

268

FEDERAL RESERVE BULLETIK.

are very common. Sales from jobbers to
dealers and consumers range in amount from
5 to 1,000 gallons, delivery usually being
made from tank wagon, except in the case oi
lubricating oil, which is usually shipped in
drums of 50 gallons.
Judging from the data available, there
appears to have been little attempt to obtain
absolute uniformity of terms in the industry
during the past decade. Only one instance
has come to notice of formal adoption of terms.
In 1913 a Middle Western association representing independent marketing interests adopted a
set of regulations to govern trading in petroleum. These regulations were concerned more
particularly with questions such as the fixing
of standards for the various petroleum products
and thus avoidance of disputes over the specific
gravity or viscosity of oils, what constitutes a
good delivery, etc. The regulations contained
a section dealing with terms, and were revised
in 1915. Eegular terms, however, are generally
recognized for each of the principal classes of
petroleum products. A basis for an understanding of the differences in terms as between
the various products is afforded by the differences in marketing methods outlined above.
During the last several years there has been a
shortening of terms on the refined products, in
particular about 1918. The trade acceptance
has also come into some use. It is estimated
by a large Eastern refiner that collections in the
industry in general average about 45 days.
Garages on the whole are slowest pay.
Turning to the individual products, crude
oil is sold on strictly net terms. Settlement is
required either once or twice a month. The
dates are stated generally to be the 10th and
25th in the midcontinent field. In some sections considerable variation is noted, different
California refiners, for example, placing the
figure variously at the 10th; 20th, and the
15th to the 25th.
The shortening of terms in the industry is
well illustrated in the case of the lighter
refined products, such as gasoline and kerosene.
These now bear terms of net 30 days. Proximo
terms may be specified in certain cases, for
example the 15th. A discount of 1 per cent
for payment within 10 days prevails in some
sections, in particular the midcontinent field,
and such, in fact, are the adopted terms on
these products mentioned above. These products are stated to be generally considered as
cash products in that field, and it is said that
the customer who takes 30 days' time is
frequently regarded as undesirable, almost all
firms discounting their bills. A sight draft is




MARCH, 1920.

reported to have largely succeeded the use of
the adopted terms for all the classes of refined
petroleum products. Prior to December 1,
1918, a cash discount of 2 per cent 10 days
had been allowed in California in many cases,
although one of the leading companies had as
its terms 2 per cent 10 days, net 60 days,
when contained in cases, drums, and iron
barrels, and 1 per cent 10 days, net 60 days,
under special contract at special prices. Prior
to about 1918 the net period was largely 60
days in many sections. Distinction is made by
certain refiners between carload shipments on
the one hand and less-than-carload shipments
and deliveries in bulk from stations and out
of tank wagons on the other hand, corresponding in considerable measure to a difference in
type of purchaser. Oil jobbers having bulk
storage purchase in carload lots, which they
barrel or can and ship to factories, garages, and
storekeepers. Gasoline is sold by refiners,|in
addition, to tractor and automobile manufacturers and to large garages. Whereas the carload shipments bear the regular terms given
above, less-than-carload shipments bear considerably shorter terms. In particular, for
tank-wagon deliveries and filling station sales
net cash is largely required. Weekly or 10-day
settlement is now specified in certain cases,
whereas formerly monthly settlement was
largely permitted and is still to some extent.
These terms apply in general to other refined
products also. A sight draft is used by one
refiner in the case of garages purchasing car
load lots, unless they are " gilt-edged." A
southwestern refiner requires cash on delivery
or net 10 days for carload shipments, but * in
some cases a discount of 1 per cent 10 days is
allowed.
Branded automobile oils are sold in carload
lots by only a small number of the larger
companies, the purchasers being garages and
automobile-accessory jobbers. Terms on both
carload and less-than-carload business are
largely 1 per cent 10 days, net 30 days. In
the case of lubricating oils and greases and
wax, carload lots are sold more particularly
to jobbers such as mentioned above. One
refiner applies the regular net 30-day terms to
carload business but grants a discount of
1 per cent 10 days on less-than-carload shipments and bulk deliveries from stations and
out of tank wagons. In the latter sphere
competition is experienced, not only with the
limited number of refiners doing a carload
business, but also with those refiners doing a
less-than-carload business and the jobbers who
do practically nothing but a less-than-carload

MARCH, 1920.

business. In California the discount was
eliminated December 1, 1918, and terms are
now net 30 days or net 60 days, proximo terms,
such as the 10th, being employed in some cases,
whereas formerly a 2 per cent discount had
been largely given. A leading refiner selling
largely to railways has terms of net 60 days.
The product in general, however, still largely
carries a cash discount. In the midcontinent
field terms are either 2 per cent 10 days, net
60 days, or 1 per cent 10 days, net 30 days.
The former are also the terms adopted by the
association mentioned above, but prior to
1915 the net period was only 30 days. Each
of the two sets of terms prevalent in the midcontinent field is now used by some of the
larger refiners in other sections, and no absolute
uniformity of practice prevails. A more or
less general tendency, however, appears to be
evident toward terms of 1 per cent 10 days,
net 30 days. Some refiners whose terms formerly were 2 per cent 10 days, net 60 days,
have recently made this change. One large
eastern refiner gives terms of 1 per cent 10
days, net 30 days, to consumers, and almost
entirely omits the discount on sales to jobbers,
quoting them net 30 days. In the Southwestterms of 2 per cent 10 days, net 30 days, are
stated to be largely in use. It has been
suggested that the generally longer terms and
cash discount prevalent on lubricating products
are due to the fact that they are more of a
specialty and consequently of a less rapid turnover as compared with other products, such as
gasoline.
Terms on fuel oil (including gas oil and road
oil) are almost uniformly net 30 days. In certain cases proximo terms are employed, such as
the 10th. A Middle Western jobber, however,
reports that he receives a cash discount of 1 per
cent 10 days from refiners on this product, and
a large refiner states that such terms were occasionally given up to about a year and a, half ago.
In the Southwest cash on delivery is largely
specified. These terms obtain also on bunker
deliveries. In certain case up to 90 days is
given to contractors in the case of sales of road
oil, while terms of a leading refiner are net 60
days to roofing manufacturers. Purchasers of
all three products as a rule pay more promptly
than do purchasers of the other two principal
classes of products. Municipalities are stated
to be the slowest paying type of purchaser of
this class of product. In certain southwestern
districts, in particular in rice-growing sections,
fuel distillate is delivered^ farmers on contract
in the spring and summer, with October 1 or
November 1 due date.




269

FEDEBAL RESERVE BULLETIN.

It is stated rather often in the industry that
jobbers' terms are longer than refiners' on similar products. In the case of the lighter oils,
less than carload shipments in general bear
terms of 1 per cent 10 days, net 30 days, and
lubricating oil bears instead a discount of 2 per
cent. In some cases, Middle Western jobbers'
terms are given as net 30 days on gasoline and
net 60 days on lubricating oil. Certain jobbers,
however, state that, while their terms from refiners on the several products differ as indicated
above, they endeavor to make their terms uniformly 1 per cent 10 days, net 30 days, on all
products. The net period on lubricating oil
some years ago was 60 days. In some cases
one-half per cent 10 days, net 30 days, is quoted
on refined oil and gasoline and 1 per cent 10
days, net 30 days, on lubricating products.
While these are the nominal terms, purchasers
are stated in certain cases to take longer time.
It is reported that from 60 days to 6 moaths
is frequently extended by Middle Western jobbers. Tank-wagon deliveries of gasoline and
kerosene, however, are usually on a net cash
basis, as in the case of similar sales by refiners.
In some cases the time has been reduced from
15 to 30 days since about 1917.
Practice of Handling Bills of Exchange in Foreign
Countries.
[American Vice Consul, Charles G. Winslow, Auckland, New Zealand.]
NEW ZEALAND.

Banking conditions in New Zealand are greatly influenced by London banks, since practically all drafts drawn
on firms in the United States by New Zealand exporters
pass through London banks.
The following is a list of the six banks in New Zealand,
all of which do a foreign exchange business:
National Bank of New Zealand (American agents, Canadian Bank of Commerce and Bank of British North America, New York City).
Union Bank of Australia (American agents, Canadian
Bank of Commerce, International Banking Corporation,
and Brown Bros. & Co., New York City),
Commercial Bank of Australia (American agents, Irving
National Bank and National City Bank of New York New
York City).
Bank of New Zealand (American agents, Canadian Bank
of Commerce, J. P. Morgan & Co., and Bank of British North
America, New York City).
Bank of New South Wales (American agents, Standard
Bank of South Africa (Ltd.), New York City).
Bank of Australasia (American agent, International
Banking Corporation, New York City).
EXPORT TRADE.

From 75 to 80 per cent of the exports to the United States
are financed by drafts drawn under letters of credit from
American banks. The New Zealand exporter draws a
draft which he sells to the New Zealand bank at a fixed
rate of discount. The other 20 or 25 per cent of exports to

270

the United States are financed by drafts (at present usually
sight, with documents attached) drawn on firms who have
not established credit, in cases when the local firm is so
well established that the bank is willing to accept the draft.
In both cases the local bank forwards the draft with documents attached to their agent in the United States, who
collects the amount of the draft from the receiver of the
goods and the proceeds are usually forwarded to London.
Credit in practically every case is lodged with New York
banks, but in some cases credit is established with banks in
San Francisco, Chicago, New Orleans, etc. The terms on
which credit is opened are determined by the American
firm establishing the credit.
About 2 £er cent of the bills on banks in New York and
other American cities are drawn in dollars, the other 98 per
cent being drawn in pounds sterling. As the bills are usually remitted to London for clearance through branch New
Zealand banks it is more convenient for the local bank to
issue drafts in pounds sterling. The current rate of exchange makes the drawing of drafts in dollars less practicable as the exchange might fall during the transmission of
the draft, and thus to protect itself the New Zealand bank
is compelled to charge a very high commission. All the
banks doing business in New Zealand have branches in
London, through which American drafts are cleared.
In regard to usance of bills, sight drafts are the standard
at the present time, although there is an equal number of
time drafts, most of which are 30-day drafts, although
some firms still give 60, 90, and 120 days. Prior t-n the war
60, 90, and 120-day drafts were more prevalent than either
sight or 30-day drafts, and this condition will probably
return when Germany again enters this market and other
competition becomes keen. It must be remembered that
usance is governed by the period of credit established by
the American bank.
All drafts are negotiated through local banks, no brokers
being employed in New Zealand. It is quite possible that
some bills pass through the hands of London or New York
brokers.
The six banks in New Zealand have an agreement by
which they quote the same exchange rates, so there is no
competition between the banks. The present agreement
came into force in 1916 and is subject to change on a week's
notice. According to the agreement previous to 1916 about
i per cent less on each item was charged. The present
rates at which banks buy drafts on London and cities in
the United States are as follows: Sight, 1 per cent; 30 days,
If per cent; 60 days, If per cent; 90 days, 2J per cent;
120 days, 2f per cent. These commissions are charged
from the day mail leaves for the United States or England.
Should an exporter desire to draw money a week or two
before the mail departs he must pay interest to the date of
sailing. Of course the banks sometimes waive this
interest charge to good clients. On sight and demand
drafts a stamp duty or poundage of 2d. (4 cents) for every
£50 ($243) is collected by the Government.
About 66 per cent of the drafts drawn on American banks
are domiciled in London in pounds sterling and the
remainder in the United States, mostly in pounds sterling,
except for about 2 per cent drawn in dollars. In export
trade this is governed by the credit established.
Mail service with American ports is about as frequent as
the service with London, although there are few vessels
running direct to London, via Panama and Suez Canals,
that do not carry mail to the United States. All the mail
steamers for American ports carry mail for England. Mail
for London requires one or two weeks longer than mail for
New York. Naturally mail to San Francisco arrives a
few days in advance of mail for New York. Usually letters
for both the United States and England leave the country
within a week or so after mailing by either the Auckland-




MARCH, 1920.

FEDERAL RESERVE BULLETIN".

Vancouver or Wellington-San Francisco routes, but on
account of the war, shipping strikes, etc., there are occasional times when mail does not leave for three or four
weeks. At present there are no scheduled mail sailings,
owing to unsettled shipping conditions existing.
United States discount and exchange rates are quoted
every second day when the market is active, but when
stationary weekly reports are received. This information
is distributed from the head offices of the banks, which are
principally situated at Wellington, who receive the information by cable from the London branch or American
representatives. Occasionally the rate is forwarded by
Australian banks.
The London branches usually forward the rates of exchange in the principal financial centers of the world, and
conversion rates on oriental centers are received about
once a month or when occasions arise.
Exchange tables (dollars into pounds sterling) are not
published in New Zealand, but a few firms have tables as
low as $4.50 to the pound sterling obtained from the
United States.
Local banks do not receive regular quotations of discount
rates for New York or other American banks, except for
the rates of exchange mentioned above, as drafts are not
discounted in this sense, and only a commission as given
in the above table is charged.
''Forward" rates of New York discount are not quoted.
There is no profit on commercial bills except the regular
exchange rate quoted above on the prevailing rate of
exchange. New York or other American discount rates
are not taken as a basis for purchasing time bills on a member bank of the Federal Reserve System.
New Zealand banks issue drafts on London whenever
possible, rather than sell drafts on banks in the United
States. The reason for this is that the Dominion banks
desire to place business in the hands of their branches in
London.
IMPORT TRADE.

The commission for collecting documentary or clean
items (without documents) in New Zealand is £ per cent,
which is a standard rate between the six banks operating
in this country. Of this commission J per cent is returned
to the bank that sends in the business, thus the Auckland
bank in reality only receives J per cent.
The total cost of collecting clean and documentary items
on New York is the $• per cent commission, plus exchange
of £ per cent for sight drafts on New York and San Francisco (} per cent additional on Chicago) and stamp duties.
A charge of Is. (24 cents) commission is usually made for
obtaining acceptance if bill is not to be left with the
Auckland bank for collection. These cases are very few.
The New Zealand Government stamp fees for clean and
documentary items are as follows: Sight (demand 2) 2d.
(4 cents); usance Is. (24 cents) per £50 ($243) or part
thereof.
The drawee pays exchange, commission, stamps, etc.,
on about one-half of the bills negotiated, and the American
bank is debited with these charges on the rest of the bills.
This, however, is governed by instructions from banks in
the United States. In case of no instructions the amount
is deducted from the remittance to the banks in the United
States.
A Government poundage (stamp tax) of 4d. (8 cents),
2d. (4 cents) on the original and 2d. (4 cents) on the
duplicate is made on sight drafts remitted to America.
On sight drafts there is a charge of 6d. (12 cents) for £25
($121.66), Is. (24 cents) per £50 ($243) or part thereof.
1
Sight draft means demand draft in New Zealand and the customary
three days of grace given in the United States on a sight draft are not
allowed m New Zealand.

MARCH,

1920.

FEDERAL RESERVE BULLETIN.

The charges in regard to noting and protesting are the
same for the six banks in New Zealand. If a bill is noted
only the charge is 5s. ($1.21), but if a full protest is taken
out the charge is £1 Is. ($5.11).
Whenever a draft is drawn after protest New Zealand
banks use every endeavor to collect protest charges and
protest fees from the drawees, and this is insisted upon
unless the drawee of the bill can show that the dishonor
of the bill was caused through no fault of his.
The New Zealand laws governing protest of items are
very simple. When a bill is refused by the drawee it is
the custom of the bank to obtain his written answer on
the reverse side of the bill. In absence of instructions to
the contrary it is then usual to note the bill for nonacceptance or nonpayment as the case may be, unless the bank
is instructed definitely to take out full protest. The law
provides that if a bill is noted (cost 5s.—$1.21) the protest
can always be taken out at a subsequent date. The
reason, therefore, of noting only in the first place is on
account of the small charge being incurred, as in many
cases the drafts are ultimately accepted or paid by the
drawee, and thus the extra expense of protesting is dispensed with. In the event of a bill being noted and the
draft held awaiting further instructions from the drawer
it is the custom to present the draft again to the drawee
on the notarial due date.
Payment of the collection and banking charges on bills
drawn upon local merchants is governed by instructions
from American banks. Commission and stamp charges
are as cited above. These charges are usually governed by
the contract between buyer and seller. The banks do not
meet with many cases where reasonable charges are refused.
Clients object to pay additional charges unless arrangements have been made. During the war much dissatisfaction was brought about by additional charges, some of
which seemed to be absurd charges which should have
been paid by the exporter.
Local banks only guarantee the payment of drafts under
a letter of credit, no matter what may be the integrity or
financial standing of the firm.
Local banks do not receive goods on consignment, and
when shipping documents are received they are turned
over to the consignee or the acceptor of the drafts. Usually
the bank only sees the shipping documents.
The local banks receive parcels which are delivered to
the consignee against payment or acceptance of draft, but
take no responsibility. Commission, stamps, etc., are
charged as above.
The New Zealand law requires that goods shall enter
the customs within 21 days after arrival, but this law is
not strictly enforced, and the customs allow the goods to
lie on the wharf a reasonable time, after which the consignee or shipping company is required to place the goods
in bond. After lying on the wharf one clear day the
Auckland Harbor Board charges storage on the goods at
a flat rate of 6d. (12 cents) per ton per night.
No fine is imposed by the customs department for failure
to make prompt entry, but the harbor board charges
storage at the rate cited above. When harbor board
storage charges are incurred it is customary for the consignee to pay these charges.
In the event of dishonor of drafts the local banks arrange
for the warehousing and insuring of goods on arrival and
thus protect the interest of the United States bankers.
The usual rate of cartage to the warehouse is 10s. ($2.43)
an hour, or 5s. ($1.21) a ton, and the storage 8s. ($1.93)
per ton per week. The banks also arrange for insurance
in the warehouses, which is usually 5s. ($1.21) for a month
or less, and 8s. ($1.93) for three months, etc., on £100
($487). The consignee usually pays the above drayage
and storage charges.




271

When goods arrive before shipping documents a letter
of indemnity (or bond) is usually taken out in order to
obtain the goods from the customs. Letters of indemnity
cost 5s. ($1.21) for a letter covering an amount up to £100
($487), and 10s. 6d. ($2.55) for any amount over £100
($487). These letters are issued only to good clients of
the banks, and securities are required in case of doubtful
customers.
No consular invoice is required for shipments from the
United States to New Zealand, but under a war measure
commodities from neutral countries must be covered by a
consular certificate. The only documents required in
connection with shipments from the United States are
bill of lading and invoice.
It is not customary to permit examination of goods by
drawee without permission by cable or letter from the
drawer or American bank.
When bills of lading are made "to order" or "to order
of the consignee" and have not come to hand, consignees
are not given possession of the goods unless they have a
letter of indemnity indorsed by the bank.
It is very important that bills of lading should be made
out "to order of the shipper" and indorsed "to
."
They should never be made out "to order of the consignee," for in the event of the dishonor of the draft it is
often difficult to obtain a discharge of the bill of lading.
In case goods are not accepted by the consignee and
the bank is directed to sell at the best market price, such
goods are usually sold by a reliable local auctioneering
firm, when a member of the bank attends the sale and looks
after the interests of the consignor. However, the bank
assumes no responsibility in this connection.
When the bank is instructed to return American goods
to the shipper the first step is to secure release of the goods
from the warehouse, then obtain space on a vessel by the
best route to the original port of shipment, secure a full
set of shipping documents, including returned American
goods invoice, bill of lading, insurance and war-risk
policies, all of which are attached to the draft for charges.
Returned goods must have a' 'transshipment entry'' which
involves no duty.
The customary phrase to be included in drafts drawn in
United States currency or pounds sterling on New Zealand
banks in order to enable the local banks to remit the American banks the face amount without deduction is as follows:
"Please collect sufficient amount from the drawee so
that you may remit to us a draft in dollars for the face
amount of the bill."
The customary phrase to be included in drafts drawn
on New Zealand banks in dollars or pounds in order to
enable the local banks to remit the face amount of the
bill plus collection charges, is "Please collect sufficient
amount from the drawee so that you may remit to us a
draft in dollars for the face amount of the bill plus collection charges in terms of enfacements of the bill."
The customary phrase to be included in drafts drawn on
New Zealand banks in United States dollars or pounds
sterling in order to enable local banks to remit the American banks the face amount of such bills plus the collection charges and interest on American banks, is as follows:
"Please collect sufficient amount from the drawee so
that you may remit to us a draft in dollars for the face
amount of the bill plus collection charges in terms of
enfacements of the bill, together with interest at
rate covering
period."
Where local banks are asked to remit in United States
currency it is the custom of the banks to do so, but in the
event of a further fall in the rate of exchange the loss falls
upon the banks in New Zealand.
When bills are drawn on New Zealand in other than
local currency it is not customary for the drawee to pay

272

FEDERAL RESERVE BULLETIN".

MARCH, 1920.

such bills by a draft purchased by another bank in New National City Bank, New York City—Continued.
Pinar del Rio, Cuba.
Zealand.
Placetas del Norte, Cuba.
When drafts are drawn in pounds sterling local banks
Remedios, Cuba.
agree upon a standard rate of exchange which is applied
Sagua la Grande, Cuba.
to all bills of exchange. This rate of exchange is the
Sancti Spiritus, Cuba.
rate current on the date of payment of bill. There is no
Santa Clara, Cuba.
law in regard to the rate of exchange. In case of term
Santiago, Cuba.
bills local banks take a form of acceptance as follows:
Union de Reyes, Cuba.
" Sighted
Yaguajay, Cuba.
"Accepted payable at
Genoa, Italy.
San Juan, Porto Rico.
"Converted into sterling at the rate currentan New ZeaPonce, Porto Rico.
land at date of maturity.
Vladivostok, Siberia.
Barcelona, Spain.
The rate of interest generally allowed acceptors for
Cape Town, South Africa.
retiring drafts before maturity is 3 per cent, on fixed
Port of Spain, Trinidad.
deposits 3J per cent. There is no law fixing the above
Calle Rondeau, Montevideo, Uruguay.
rate of interest, which is determined from time to time
Montevideo, Uruguay.
by agreement between the New Zealand banks.
Caracas, Venezuela.
Generally there are no other charges beyond the protest
Maracaibo, Venezuela.
fees as mentioned above in connection with the return to
Temporarily closed—
American bankers of dishonored bills. In the event of
Moscow, Russia.
a draft being ultimately paid or proceeds coming into the
Petrograd, Russia.
hands of the local banks, it is usual for the banks to deduct the charges when remitting proceeds to the United First National Bank, Boston, Mass.:
Buenos Aires, Argentina.
States. When this is not done it is usual to ask the American banks to remit the amount of the charges to London.
BANKS DOING BUSINESS UNDER AGREEMENT WITH THE
FEDERAL RESERVE BOARD.

Foreign Branches.

There is given below a list of foreign branches
of national banks and of banks doing business
under agreement with the Federal Reserve
Board, which were open for business on February 18, 1920:
NATIONAL BANKS.

National City Bank, New York City:
Buenos Aires, Argentina.
Plaza Once, Buenos Aires, Argentina.
Rosario, Argentina.
Brussels, Belgium.
Antwerp, Belgium.
Bahia, Brazil.
Pernambuco, Brazil.
Porto Alegre, Brazil.
Rio de Janeiro, Brazil.
Santos, Brazil.
Sao Paulo, Brazil.
Barranquilla, Colombia.
Bogota, Colombia.
Medellin, Colombia.
Santiago, Chile.
Valparaiso, Chile.
Artemisa, Cuba.
Bayamo, Cuba.
Caibarien, Cuba.
Camaguey, Cuba.
Cardenas, Cuba.
Ciego de Avila, Cuba.
Cienfuegos, Cuba.
Colon, Cuba.
Cruces, Cuba.
Cuatro Caminos, Havana, Cuba.
Galiano, Havana, Cuba.
Guantanamo, Cuba.
Havana, Cuba.
Manzanillo, Cuba.
Matanzas, Cuba.




American Foreign Banking Corporation, New York City:
Brussels, Belgium.
Cali, Colombia.
Cristobal, Canal Zone.
Harbin, Manchuria.
Havana, Cuba.
Manila, P. I.
Panama, Republic of Panama.
Port au Prince, Haiti.
Rio de Janeiro, Brazil.
San Pedro Sula, Honduras.
Mercantile Bank of the Americas, Inc., New York City:
Paris, France.
Barcelona, Spain.
Madrid, Spain.
Affiliated Institutions—
Banco Mercantil Americano de Colombia—
Bogota, Barranquilla, Cartagena, Medellin,
Cali, Girardot, Manizales, Honda, Armenia,
Bucaramanga, and Cucuta, Colombia.
Banco Mercantil Americano del Peru—
Lima, Arequipa, Chiclayo, Callao, and Trujillo,
Peru.
Banco Mercantil Americano de Caracas—
Caracas, La Guayra, Maracaibo, and Puerto
Cabello, Venezuela.
American Mercantile Bank of Brazil—
Para and Pernambuco, Brazil.
National Bank of Nicaragua—
Managua, Bluefields, Leon, and Granada,
Nicaragua.
Banco Mercantil Americano de Cuba—
Havana, Cuba.
Banco Mercantil de Costa Rica—
San Jose, Costa Rica.
(A branch office is also maintained by the Mercantile
Bank of the Americas, Inc., in New Orleans, La.)
Asia Banking Corporation, New York City:
Canton, China.
Changsha, China.
Hankow, China.

MARCH, 1920.

273

FEDERAL RESERVE BULLETIN.

Asia Banking Corporation, New York City—Continued.
Hongkong, China.
Manila, P. I.
Peking, China.
Shanghai, China.
Tientsin, China.
International Banking Corporation, New York City:
Batavia, Java.
Bombay, India.
Calcutta, India.
Canton, China.
Cebu, Philippines.
Colon, Republic of Panama.
Hankow, China.
Harbin, China.
Hongkong, China.
Kobe, Japan.
London, England.
Lyons, France.
Manila, P. I.
Panama, Republic of Panama.
Puerto Plata, Dominican Republic.
Peking, China.
Rangoon, India.
Santo Domingo, Dominican Republic.
Sanchez, Dominican Republic.
San Pedro de Macoris, Dominican Republic.
Santiago, Dominican Republic.
Shanghai, China.
Singapore, Straits Settlements.
Soerabaya, Java.
Tientsin, China.
Tsingtao, China.
Yokohama, Japan.
(A branch office is also maintained by the International Banking Corporation in San Francisco,
Calif.)
Park-Union Foreign Banking Corporation, New York City:
Paris, France.
Shanghai, China.
Yokohama, Japan.
Tokyo, Japan.
(Branch offices are also maintained in San Francisco,
Calif., and Seattle, Wash., by the Park-Union
Banking Corporation.)
ThelFirst National Corporation, Boston, Mass., has
opened no foreign branches. A branch office of this corporation is maintained at 14 Wall Street, New York City.
^ *The Shawmut Corporation of Boston, Mass., has opened
no foreign branches. A branch office of this corporation
is maintained at 65 Broadway, New York.
The IFrench American Banking Corporation of New
York City and the Foreign Credit Corporation of New
York City have opened no foreign or domestic branches.

Capital. Surplus. Total reDistrict No. 2.

Bank of Hasbrouck Heights, Hasbrouck
Heights, N. J
$50,000 $10,000
$65,000
Marine Trust Co. of Buffalo, Buffalo,
N. Y
7,500,000 7,500,000 92,791,454
Bank of Coney Island, Coney Island,
100,000 3,081,778
New York City
200,000
The Peoples Trust Co., Malone, N. Y... 300,000 100,00a
529,500
The State Bank of Shortsville, Shorts6,000
ville,N. Y
36,000
30,000
Industrial Bank of New York, NewYork Citv
1,000,000 500,000 4,225,613
District No. 4.

Merchants State Bank, New Philadelphia, Ohio
$100,000
Commercial Banking & Trust Co.,
Wooster, Ohio
150,000
Guaranty Safe Deposit & Trust Co.,
Butler,Pa
250,000
Real Estate Trust Co., Washington, Pa. 200,000

$50,000

$808,659

31,000

1,030,621

250,000 3,722,042
300,000 2,619,255

District No. 0.

Farmers Banking & Trust Co., Tarboro,N.C
Peoples Bank of Floyd County, Floyd,
Va
"

100,000

50,000

1,232,171

35,000

25,000

279,160

100,000

16,000

598,203

25,000

12,500

228,647

100,000
50,000
25,000

12, 500

968,415
50,000
102,189

District No. 6.

Bank & Trust Co. of Talladega, Talladega, Ala
Farmers & Merchants Bank, Chipley,
Ga
District No. 7.

Morton Park State Bank, Cicero, HI
First State Bank, Divernon, 111
.Leon Savings Bank, Leon, Iowa
Security Trust & Savings Bank, Storm
Lake, Iowa
Marysville Savings Bank, Marysville,
Mich
Farmers State Bank, Montague, Mich..

75,000

2/648

596,749

100,000
25,000

50,000
5,000

469,189
371,812

25,000
200,000

2,500
50,000

27,500
3,268,121

50,000

30,000

862,480

District No. 8.

Peoples State Bank, Cabot, Ark
Tower Grove Bank, St. Louis, Mo
District No. 9.

The Manistique Bank, Manistique,
Mich
DistrictlNo. 10.

The Security Bank, Meadow Grove,
Nebr
Guaranty State Bank, Ardmore, Okla..
First State Bank, Oklahoma City, Okla.

25,000
200,000
200,000

267,682
60,000 3,450,228
14,400 2,250,963

District No. 11.

First State Bank, George West, Tex—

50,000

13,000

255,386

District No. IP.

State Banks and Trust Companies.

The following list shows the State banks and
trust companies which have been admitted to
membership in the Federal Reserve System
during|the month of February.
One thousand two hundred and forty-one
State institutions are now members of the system, having a total capital of $436,570,766,
total surplus of $458,359,566, and total resources of $9,778,717,231.




Union Bank & Trust Co. of Los Angeles,
750,000
Los Angeles, Calif
D. W. Standrod & Co., Blackfoot, Idaho. 100,000
25,000
Bank of Hansen^IIansen, Idaho
First Bank of Homedale, Homedale,
25,000
Idaho
Farmers & Merchants Bank, Rupert,
35,000
Idaho
30,000
First State Bank, Gresham, Oreg
Lake County Loan & Savings Bank,
40,000
Lakeview, Oreg
Fillmore Commercial & Savings Bank,
50,000
Fillmore, Utah
25,000
Buena State Bank, Buena, Wash
Citizens State Bank, Puyallup, Wash... 50,000

114,500 5,559,555
70,000 2,545,426
337,358
5,000
27,500

"25,666

42,237
630,243

10,000

328,023

10,000

60,000
190,556
1,069,651

10,000

274

MARCH, 1920.

FEDERAL RESERVE BULLETIN.

reverses of January, 1915, the high point for
the month, a numerical decrease of 80 per
cent
appears. Separated according to FedCONVERSION.
eral Reserve districts, the January statistics
The Illinois State Bank, East St. Louis, 111., has converted into the
show more failures than last year in the first,
First National Bank in East St. Louis.
third, fifth, tenth, and twelfth districts, but
CHANGE OF N A M E .
the increases are slight, and are more than
The Dime Deposit Bank, Wilkes-Barre, Pa., has changed its name offset by the declines in the seven other disto "Dime Bank Title & Trust Co."
tricts. An even more favorable exhibit is
made by the January liabilities, which are
New National Bank Charters.
smaller than those of that month of 1919 in
The Comptroller of the Currency reports every Federal Reserve district except the
the following increases and reductions in the seventh, tenth, and twelfth districts.
number and capital of national banks during
the period from January 31 to February 27,
Failures during January.
1920, inclusive:
WITHDRAWAL.

The Pierce Trust & Savings Bank, Sycamore, 111., has withdrawn
from membership.

Banks.

New charters issued to
33
With capital of
Increase of capital approved for
55
With new capital of
,.
Aggregate number of new charters and
banks increasing capital
88
With aggregate of new capital authorized
Number of banks liquidating (other than
those consolidating with other national
banks under the act of June 3, 1864)... 7
Capital of same banks
Number of banks reducing capital
0
Reduction of capital
Total number of banks going into liquidation or reducing capital (other than those
consolidating with other national banks
under the act of June 3, 1864)
7
Aggregate capital reduction
Consolidation of national banks under the
act of Nov. 7, 1918
2
Capital
The foregoing statement shows the aggregate of increased capital for the period of
the banks embraced in statement w a s . . . . .
Against this there was a reduction of capital owing to liquidation (other than for
consolidation with other national banks
under the act of June 3, 1864), and
reductions of capital of

Number.

Liabilities.

Districts.

$1,815,000

1920

1919

1920

1919

6,545,000
8,360,000

425,000
0

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

.. .

74
103
39
39
35
37
57
34
15
32
33
71

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

$632,814
1,212,644
828,805
327,743
284,943
235,357
1,179,910
168,764
132,265
367 433
284,096
1,585,258

$850,345
3,258,200
976 464
1,103,950
617,155
376,517
988,347
654,396
203,589
320 331
695,082
692,022

569

673

7,240,032

10,736,398

425,000 Fiduciary Powers Granted to National Banks.

The applications of the following banks for
permission to act under section 11-k of the
Federal Reserve Act have been approved by
8,360,000 the Federal Reserve Board during the month
of February, 1920.

1,190,000

DISTRICT No.

2.

425,000 Trustee, executor, administrator, registrar of stocks and
bonds, guardian of estates, assignee, receiver, and comNet increases
7,935,000
mittee of estates of lunatics:
City National Bank, Perth Amboy, N. J.
Farmers National Bank, Adams, N. Y.
National Bank of Fredonia, Fredonia, N. Y.
Commercial Failures Reported.
Lackawanna National Bank, Lackawanna, N. Y.
Second National Bank, Oswego, N. Y.
Notwithstanding the fact that the coun-

try's business mortality at this period last
DISTRICT NO. 4.
year was relatively moderate, this year's Trustee, executor, administrator, registrar of stocks and
insolvency returns disclose continued reduc- bonds, guardian of estates, assignee, receiver, and
tion, commercial failures reported to K. 6. committee of estates of lunatics:
First National Bank, Pittsburgh, Pa.
Dun & Co. during three weeks of February
executor, administrator, registrar of stocks and
numbering 367, against 446 in the same Trustee,
bonds, guardian of estates, receiver, and committee of
weeks of 1919. Moreover, the statement for estates of lunatics:
January, the latest month for which complete
Traders National Bank, Mt. Sterling, Ky.
Newport National Bank, Newport, Ky.
figures are available, reveals only 569 defaults
for $7,240,032 of liabilities, as contrasted Trustee, executor, administrator, registrar of stocks and
guardian of estates, assignee, and receiver:
with 673 reverses, involving $10,736,398 in bonds,
Bank of Athens, N. B. A., Athens, Ohio.
January, 1919. Comparing with the 2,848
National Bank of Commerce, Lorain, Ohio.




MARCH, 1920.

275

FEDERAL RESERVE BULLETIN.
DISTRICT No.

6.

DISTRICT NO. 9.

administrator, registrar of stocks and bonde,
Trustee, executor, administrator, registrar of stocks and Executor,
guardian of estates, assignee, receiver, and committee
bonds, guardian of estates, assignee, receiver, and comof estates of lunatics:
mittee of estates of lunatics:
First NationalJBank, Vermillion, S. Dak.
Georgia National Bank, Athens, Ga.
DISTRICT NO. 10.
DISTRICT No.

7.

Trustee, executor, administrator, registrar of stocks and
bonds, guardian of estates, assignee, receiver, and comTrustee, executor, administrator, registrar of stocks and
mittee of estates of lunatics:
bonds, guardian of estates, assignee, receiver, and comTrinidad National Bank, Trinidad, Colo.
mittee of estates of lunatics:
First National Bank, Columbus, Nebr.
National Bank of the Republic, Chicago, 111.
American National Bank, Enid, Okla.
Peoples National Bank, Jackson, Mich.
Guardian of estates, assignee, receiver, and committee of
DISTRICT NO. 12.
estates of lunatics:
First National Bank, Logansport, Ind.
Trustee, executor, administrator, registrar of stocks and
Second National Bank, Saginaw, Mich.
bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics:
Yakima National Bank, Yakima, Wash.




276

FEDERAL RESERVE BULLETIN.

MARCH. 1020.

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:
Warehouse acceptances covering goods under contract
for sale and delivery at a remote period.

Although a national bank may accept
drafts drawn upon it having not more than six
months' sight to run which are secured at the
time of acceptance by a warehouse receipt
conveying or securing title covering readily
marketable staples, nevertheless, such an
acceptance must not be made subject to any
renewals.
[See opinion of General Counsel in Law Department.]

Limitation upon the aggregate rediscounts of the paper
of one borrower made for different member banks.

A Federal Reserve Bank may properly
decline to discount for a member bank the
paper of any one borrower on the ground that
the Federal Reserve Bank has theretofore
discounted for other member banks what it
deems to be a sufficient amount of that particular borrower's paper.
[See opinion of General Counsel in Law Department.]

Collection of maturing items for the account of another
Federal Reserve Bank.

The Federal Reserve Board has been asked
to rule upon the question whether a Federal
Reserve Bank may receive for collection
maturing notes and bills drawn by or upon
firms, individuals, or corporations (not member banks) located within its own district if
such notes and bills are forwarded to it for
collection by a member bank in another
district for the account of the Federal Reserve
Bank of that other district.




In a ruling printed on page 467 of the May,
1919, Federal Reserve Bulletin it was stated
that although a Federal Reserve Bank may
properly collect such notes and bills for
another Federal Reserve Bank, nevertheless
this service can not be rendered directly for
any member bank located outside of its own
district. As stated in that ruling the only
collection service which a Federal Reserve
Bank may perform directly for any member
bank located outside of its district is that of
collecting checks and drafts drawn upon member banks located within its district.
The question now under consideration is
whether a Federal Reserve Bank may collect
maturing notes and bills drawn upon firms,
individuals, or corporations which are located
within its district but which are not member
banks when such notes and bills are forwarded
to it for collection by a member bank of
another district for the account of the Federal
Reserve Bank of that other district.
The Board is of the opinion that this service
may be performed by a Federal Reserve Bank
at its own option whenever it has received
satisfactory advice that the Federal Reserve
Bank for whose account the collection is
being made has authorized its member bank
to act as its agent in forwarding maturing
items of this character for collection and
credit to its account. It is immaterial whether
the authority to act as agent is specific as to
the particular member bank or whether it is
general as to all member banks of the Federal
Reserve Bank for whose account the collection
is being made.
It is believed that the development of this
practice may be found to be an advisable
extension of the collection facilities of the
various Federal Reserve Banks. If adopted
it will no doubt permit of a considerable saving
of time and expense which otherwise would
result as an incident to the indirect routing of
maturing items.

MARCH, 1920.

FEDERAL RESERVE BULLETIN.

277

LAW DEPARTMENT.
The following opinions of General Counsel terms of this section unless the goods covered
have been authorized for publication by the by the warehouse receipt are being held in
Board since the last edition of the B U L L E T I N : storage pending a reasonably immediate sale,
Warehouse acceptances covering goods under contract shipment, or distribution into the process of
manufacture. Any draft, therefore, which is
for sale and delivery at a remote period.
Although a national bank may accept drafts drawn upon
it having not more than six months' eight to run which are
secured at the time of acceptance by a warehouse receipt
conveying or securing title covering readily marketable
staples, nevertheless, such an acceptance must not be made
subject to any renewals.

This office has been asked for an opinion on
the question whether a national bank may,
under the following circumstances, accept a
draft secured at the time of acceptance by warehouse receipts or other such documents conveying or securing title covering readily marketable, nonperishable staples.
The facts presented for consideration indicate that the drawer owns certain readily
marketable, nonperishable staples which are
under contract for sale upon terms calling for
payment upon delivery. In some instances
the deliveries are to be made in the immediate
future, but others are to be made over a period
of eight months. In order to carry the goods
pending delivery to and payment by the
buyers the owner of the goods desires to draw
90-day drafts secured by warehouse receipts
and other such documents covering the goods
to be sold. It is contemplated that a small
portion of the acceptances shall be renewed for
90 days and that a still smaller portion shall be
renewed for an additional 60 days.
Under the terms of section 13 a member bank
may accept drafts drawn upon it having not
more than six months7 sight to run which are
secured at the time of acceptance by a warehouse receipt or other such document conveying
or securing title covering readily marketable
staples. The Federal Reserve Board in a
ruling published on page 858 of the September
(1919) BULLETIN has expressed the opinion
that no draft secured by a warehouse receipt
should be eligible for acceptance under the




drawn to carry goods for speculative purposes,
or for any indefinite period of time without the
purpose of sale, shipment, or manufacture
within a reasonable time, should not be considered eligible. It would be merely a cloak to
evade the restrictions of section 5200, Revised
Statutes.
While there can be no element of speculation
in the present case, since the sale price is predetermined by existing contracts, nevertheless
it is not Believed that any draft secured by
warehouse receipts should be accepted subject
to an agreement by the accepting bank to make
renewals. Congress, in expressly permitting
the acceptance of drafts for the purpose of
carrying readily marketable staples in storage,
apparently contemplated that a six months'
period would cover all reasonable contingencies requiring a banker's acceptance credit for
that purpose; that is, the orderly marketing
of staples which, by hypothesis, must be readily
marketable.
If the borrower needs funds for a period
longer than six months he may properly borrow
upon his direct note secured by the readily marketable staples, subject to the limitations of
section 5200, Revised Statutes, but the facilities afforded by Congress, under the provisions
of section 13 of the Federal Reserve Act, to
provide a liquid credit to carry readily marketable goods temporarily in storage pending a
reasonably immediate sale, shipment, or distribution into the process of manufacture,
should not be abused for the purpose of procuring funds for any other purpose.
The fact that the goods are under contract
for sale and delivery eight months hence, even
though eliminating the element of speculation,
is not a reason which is sufficient to controvert
the principle defined above, for, if so; all of the

278

FEDERAL RESERVE BULLETIN.

many seasonal or annual contracts for future
deliveries by installments might conceivably be
financed by warehouse acceptances It could
not have been contemplated by Congress that
accumulated stock on hand to be disposed of
at any such remote, though definite period,
should be financed by warehouse acceptances
subject to renewals. To permit the seller to
finance the holding of the goods pending
delivery at such a remote period would not
in substance be different from permitting the
purchaser himself to hold the goods in storage
an indefinite time pending either resale or
distribution into the process of manufacture.
The Board has heretofore ruled that the purchaser of goods can not properly finance the
holding of those goods in storage by renewal
acceptances pending any such remote use.
[See opinion, page 66 of the January, 1920,
FEDERAL RESERVE BULLETIN.] The same
principle is applicable to the case under
consideration,
If, however, a borrower wishes to procure an
acceptance credit for the purpose of carrying
goods in warehouse pending a sale which is
reasonably contemplated within three months,
he may, of course, procure a bankers' acceptance for that period, and in the event that for
some unforeseen reason the sale does not
materialize within that time another new
acceptance may be procured, but this second
acceptance must not have been contracted for
in advance as a renewal of the original acceptance and should not be granted unless it
conforms to the terms and conditions applicable
to an original acceptance.
Limitation upon the aggregate rediscounts of the paper
of one borrower made for different member banks.
A Federal Reserve Bank may properly decline to discount for a member bank the paper of any one borrower
on the ground that the Federal Reserve Bank has theretofore discounted for other member banks what it deems
to be a sufficient amount of that particular borrower's
paper.

The opinion of this office has been asked on
the question whether a Federal Reserve Bank
may properly decline to discount for a member




MARCH, 1920.

bank the paper of any one borrower on the
ground that the Federal Reserve Bank has
theretofore discounted for other member banks
what it deems to be a sufficient amount of that
particular borrower's paper.
There does not seem to be any question that
both the letter and the spirit of the law give
to the Federal Reserve Bank discretion in the
matter of its discounts, and even admitting that
a reserve bank is not a commercial bank in the
ordinary sense, it is both lawful and proper
for it to place an aggregate limit on the amount
of paper for any one borrower which it will
discount for all of its member banks. The
sole fact that the Federal Reserve Bank may
have discounted for one or more of its member
banks some of the paper of a particular borrower
should not, and can not, bind it to rediscount
all of the paper of that borrower that may in
the future be presented by the same or other
member banks.
Section 4 of the Federal Reserve Act provides in part that the board of directors of
each Federal Reserve Bank—
shall administer the affairs of said bank fairly
and impartially and without discrimination in
favor of or against any member bank or banks,
and shall, subject to the provisions of law and
the orders of the Federal Reserve Board, extend
to each member bank such discounts, advancements, and accommodations as may be safely
and reasonably made with due regard for the
claims and demands of other member banks.
Although this section provides that the Federal Reserve Bank shall not discriminate against
any member bank, it can not be supposed
that a general policy of declining to receive
more than a certain proportion of the paper of
a borrower is of itself a discrimination. It is
a general and conservative policy applicable
to all member banks alike.
Furthermore, the latter part of the clause
quoted imposes upon the Federal Reserve Bank
an obligation to make only those discounts
which "may be safely and reasonably made."
The length of the line of any one particular
borrower appears to be a pertinent consideration in determining both the safety and reasonableness of a discount.
.

MAKCH, 1920.

FEDEBAL BESERVE BULLETIN.

WHOLESALE PRICES ABROAD.

279

importance in this connection. During January the rate of exchange on London, New York,
Holland, Norway, Sweden, Switzerland, and
Spain was increasingly unfavorable.
The coal shortage has resulted from the difficulty of obtaining coal from Belgium, reduced
imports from England, the lack of shipments
from Germany, strikes of sailors, and of dock
hands at Rouen, and the scarcity of freight cars.
Minerals other than coal have likewise increased
in price during the month and considerable advances were made in steel prices.
The most striking advance in food prices
occurred in sugar, where the Government subsidy was removed toward the end of December.
New prfces are over 50 per cent higher than the
subsidized price.

Tables are presented below showing the
monthly index numbers of wholesale prices of
some of the leading countries of the world computed on the basis of prices in 1913 = 100.
In all cases except that of the United States
the original basis upon which the index number has been computed has been shifted to
the 1913 base. The monthly and yearly
index numbers are therefore only approximate.
These index numbers are constructed by the
various foreign statistical offices according to
methods described in the January BULLETIN.
The January figures are subject to correction.
The latest figures show that prices continued
to rise in January in all countries for which we
have index numbers for that month. The rate
Index numbers of wholesale prices (all commodities).
of increase was more rapid both in the United
[1913=100.]
States and England than during the preceding
month. The January index number for France,
Ja1
I Canreceived by cable, ii correct, shows the enorUnipan; AustraCom- ada;
France;
Bank lia;
United ted Bulletin
DeItaly;
mous advance of 60 points in the course of the
monof Ja- wealth
States; King- dela
Prof.
Bureau dom; Statis- Bachi Swe- pan Bureau | partone month. In Japan and Canada prices likement
of Labor Stat- tique
(40 den, for Census ofLawise continued to rise. The index numbers for
Statisist
Gener- com- Offi- To- and Sta- bor
kyo
cial.
tics
(328
(45
ale
(45
May to August, 1919, for Sweden confirm the
modi(272
(56 tistics
quota- com- com- ties).
com- quocom- (92
statement made in the last BULLETIN that prices
tions). modi- modimoditamodi- ties). jtions).
ties). ties).
there appeared to be on the decline. Italian
ties).
prices increased considerably during November and December,
1913
100
100
100
100
100
100
100
100
102
106
101
100
101
95
95
116
In England the most striking advance oc- 1914
1915
147
110
101 126
140
145
97
133
185
138
135
124
159
187 202
117
curred in the mineral group, considerable in- 1916
244
153
177
174
206
262 299
149
1917 . .
creases occurring in the price of export coal, 1918
178
206
197
226
197
413
339
tin, and iron; increases were likewise felt in
1919.
212
203
224
348 328 369 214
U77
sugar and in textiles, the rise in the price of January...
207
February.
197
220
340 323 358 213
silk being especially marked. In Canada food March
206
205
326
354
201 217
337
207
206
330
339
April
203
217
332
products, with the exception of dairy products, May
215
210
333
207
229
325 337
210
207
235
329 355 324 228
advanced in price. Commodities used for cloth- June
247
218
320
July
219
243
349 359
ing as well as those in the construction group August....
226 2.50
347 367
251
223
321
257
223
369
September
221 253
360
likewise advanced.
271
222
October...
223 264
382 387
280
227
435
230
272
405
In France the rise in prices is apparently November
240
288
December.
238
276
417 455
mainly due to the increasing scarcity of such
1920.
raw materials as silk, cotton, and pig iron, and January...
248
301
248
288
487
the alarming shortage of coal. The unfavori Quarter.
able exchange situation is likewise of primary




280

FEDERAL RESERVE BULLETIN.

MARCH,

1920.

Group index numbers— United States Bureau of Labor Statistics.
[1913=100.]
Cloths
Farm
Fuel and Metals
Food, etc. and
and metal
products.
clothings. lighting. products.

Date.

1913
1914
1915
1916
1917
1918.

Miscellaneous.

100
103
106
119
189
219

100
102
105
124
178
191

100
98
99
123
181
240

100
96
92
114
175
163

100
88
94
142
208
181

100
98
94
100
124
152

100
101
109
157
198
221

100

222
218
228
235
240
231
246
243
226
230
240
244

209
197
205
212
216
206
218
228
212
211
219
234

234
223
216
217
227
258
282
303
306
313
325
335

170
169
168
167
167
170
171
175
181
181
179
181

172
168
162
152
152
154
158
161
160
161
164
169

161
163
165
162
164
175
186
209
229
231
236
253

191
185
183
178
179
174
171
172
173
174
176
179

212
208
217
216
213
212
221
225
217
220
220
220

246

253

350

184

177

268

189

227

117
153
192

1919.
January
February
March
April
May
June
July
August
September
October...
November
December
1920.
January

Group index numbers— United Kingdom Statist.
[1913-100.]

Date.

1913
1914
1915
1916
1917
1918
January
February
March
April
May
June
July
August
September
October
November
December

Vegetable
foods.

Animal
foods.

Sugar,
coffee,
tea.

Foodstuffs.

I
Minerals. Textiles. Sundries. Materials.

100
110
155
193
252
248

100
100
125
152
192
210

100
107
130
161
212

100
105
137
169
218
229

100
90
109
140
153
167

100
97
111
152
228
265

100
105
131
163
213
243

100
98
119
153
198
225

249
250
240
243
244
246
244
254
258
260
266

226
226
205
206
208
208
208
208
208
226
226
228

221
221
238
228
236
243
275
318
327
322
331
335

234
235
224
224
226
229
231
242
244
253
258
260

159
156
154
154
177
182
202
206
206
222
226
234

246
242
235
239
253
258
256
272
286
305
325
334

246
235
246
243
258
271
284
283
279
284
292
296

218
212
213
213
230
239
250
254
257
270
280

274

230

356

265

256

343

312

302

1919.

1920.
January




MARCH, 1920.

281

FEDERAL RESERVE BULLETIN.
Group index numbers—France and Italy.
France, Bulletin
delaStatistique
Generale.
[1913=100.]

I t a l y , 1 Prof. Bachi
[1913=100.]

Date.
Materials
(25).

Cereals
and
meats.

100
104
131
167
225
281

100
101
145
206
291
387

100
102
132
156
215

313
316
337
336
319
313
338
323
334
353
369
375

376
360
337
330
330
344
358
367
381
405
435
458

304
300
292
294
293
320
334
332
319
326
328
338

440

525

Foods
(20).
1913
1914
1915
1916
1917
1918

Other
foodstuffs.

Textiles.

Minerals
and
metals.

100
84
93
135
171

100
96
113
184
326

100
100
207
380
596

100
96
133
197
266

300
307
312
330
336
343
331
351
354
364
371
373

330
328
331
333
375
381
401
423
430
500
634
658

306
306
355
358
366
419
420
421
446
465
568
584

422
3S4
362
349
340
33 fi
342
341
342
341
351
405

Other

goods.

1919.

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

1920.

January...
1

Group index numbers January-September, 1918, not available in this country.
Group index numbers—Sweden, official.
[1913=100.]

Date.

1913-14
19141
1915
1916
1917
1918

January
February
March
April




Raw
Vegetable Animal materials
for
agrifood.
food.
culture.
I

Coal.

Building
Metals. material.

Paper
pulp.

Hides
and
leather.

100
136
151
152
181
221

100
101
140
182
205
419

100
114
161
180
198
304

100
123
177
266
551
856

100
109
166
272
405
398

100
104
118
165
215
275

116
233
267
300

100
118
158
229
206
395

276
276
276
276

483
448
438
423

356
356
356
367

810
784
814
769

373
341
317
287

293
293
288
288

323
323
323
323

208
208
174
172

100

1919.

i Average for the six months ending Dec. 31, 1914.

282

MARCH, 1920.

FEDEKAL RESERVE BULLETIN.
Group index numbers—Canadian Department of Labor.1

Pate.

Grains
and
fodder.

Fruits
Animals Dairy
and
and
vegeproducts.
meats.
tables.

Other
foods.

Hides,
Textiles. leather,
etc.

Metals.

Building
Fuel
Imple- materials,
and
ments. lumber. lighting.

Drugs
and
chemicals.

1913
1914
1915
1916
1917
1918

100
114
136
142
206
231

100
107
104
121
160
195

100
100
105
119
149
168

100
99
93
130
233
214

100
104
121
136
180
213

100
102
114
148
201
273

100
105
110
143
168
169

100
96
128
167
217
229

100
101
106
128
174
213

100
100
97
100
118
147

100
94
92
113
163
188

100
106
160
222
236
250

1919.
January
February
March
April
....
Mav
June
July
August
September... .
October
November
December

198
192
199
217
231
238
240
243
232
232
240
251

191
191
196
209
213
213
216
215
201
180
175
182

191
178
171
184
181
179
186
189
193
204
221
230

206
188
189
198
209
221
200
210
195
178
240
240

223
218
219
213
213
215
218
224
227
228
230
232

293
281
282
284
277
274
278
277
282
289
298
306

171
162
162
166
202
211
235
260
256
252
252
231

204
189
172
162
162
161
166
171
171
165
171
181

229
229
229
223
223
226
226
228
231
225
232
232

154
155
156
153
153
158
168
170
183
188
194
224

209
202
199
206
192
194
194
199
200
201
201
209

240
233
212
210
208
197
195
196
197
198
181
190

1920.
January

268

195

228

265

245

316

237

191

235

232

212

191

1

Unimportant groups omitted.

WHOLESALE PRICES IN THE UNITED
STATES.

In continuation of figures shown in the
February BULLETIN there are presented below
monthly index numbers of wholesale prices for
the period July, 1919, to January, 1920, compared with like figures for January of previous
years; also for July, 1914, the month immediately preceding the outbreak of the great war.
The general index number is that of the
United States Bureau of Labor Statistics. In
addition there are presented separate numbers
for certain particular classes of commodities
in accordance with plans announced in previous issues of the BULLETIN.
Quotations for eastern spruce have been
omitted. On the other hand, quotations for
worsted yarns (2-32s, crossbred), butter (prime
firsts, San Francisco), bananas (Jamaica 8s,
New York), ginghams (Lancaster, 6.50 yards
to pound), and starch (laundry, New York),
which had been dropped temporarily, have been
secured for the months of December and January, and the commodities were again included
in the calculation of the index numbers for the
latter month. Several substitutions have been
made, namely, of gun metal, plain toe, single
sole, kid lace, McKay sewed, for button shoes
of otherwise similar description, and likewise
with similar Goodyear welt shoes, of Bigelow
f Axminster for Lowell Axminster carpet, and
of quartered oak rockers with wooden seat for
plain oak rockers. For bar silver, the average




asked price is now used, and in the case of the
Portland quotation of wheat flour the discount
of i per cent is deducted. Index numbers for
January are provisional, due to the fact that
certain data were not received in time to render
them available for use in the calculations.
A further increase in wholesale prices is
noted for the month of January. The general
index number of the Bureau of Labor Statistics
advanced from 238 for December to the new
record figure of 248. Increase occurred in the
index numbers for each of the three principal
groups of commodities, and each again establishes a new record for the group. The increase
is again greatest in the case of producers'
goods, namely, 7.4 per cent, from 228 to 245.
Decrease in price occurred only for a small
number of the commodities included in the
group, among which may be mentioned harness
oak and sole hemlock leather, linseed oil, jute,
rubber, and oleo oil. These decreases by no
means offset increases in price for an extended
list of commodities, including cotton and
worsted yarns, and cotton thread, various metal
products, such as bar iron, steel billets, plates
and rails, nails, copper wire, lead pipe, and
cast-iron pipe, resin, turpentine, shingles, lime,
cement, brick, carbonate of lead, and glass,
lubricating oil and gasoline, various chemicals,
in particular grain and wood alcohol, glycerin
and soda ash, and bran, tallow, and sugar
(96° centrifugal).
Least among the increases in the index
numbers for the three principal groups of com-

MARCH,

283

FEDERAL RESERVE BULLETIN.

1920.

modities is that shown by the number for the
group of raw materials, namely, 2.4 per cent,
from 233 to 239. The index number for each
of the subgroups included under this head has
likewise increased. The number for the forest
products subgroup now stands at 273, an increase of 14 points or 5.3 per cent over the
previous record of the month of December, due
to increases in the prices of Douglas fir, hemlock, maple, white oak, and poplar. No commodities included in the subgroup decreased in
price. An increase of 2.4 per cent, from 186 to
190, occurred in the index number for the
mineral products subgroup. Decreases in the
prices of various classes of bituminous coal and
coke were more than offset by increases in the
prices of copper, lead, tin and zinc, pig iron,
and crude petroleum. The number for the
animal products subgroup increased from 209
to 214, or 2.3 per cent. Decreases in the prices
of steers and packer hides did not offset increases in the prices of hogs, sheep and poultry,
calfskins, silk and wool. The increase was

least for the farm products subgroup, from 288
to the new record figure of 290, or 1 per cent.
Decreases in the prices of barley, cotton (New
York quotation), and spring wheat were more
than offset by increases in the prices of cotton
as quoted at New Orleans, corn, oats, rye and
winter wheat, flax, timothy, and alfalfa.
The index number for the group of consumers' goods now stands at 258, an increase of
13 points, or 5.3 per cent, over the figure for the
month of December. Decrease in price occurred in the case of butter, eggs, lemons,
prunes and oranges, corn meal, fresh beef,
bacon, mess beef and pork, oleomargarine
and rice, but were more than offset by
increases in the prices of flour, hams, lard,
lamb, mutton and poultry, coffee, molasses,
olive oil, peanuts, potatoes, sugar, onions
and cottonseed oil, various classes of shoes,
denims, drillings, ginghams, hosiery, print
cloths, sheetings, shirtings and underwear,
French serge, carpet, housefurnishings, and
wrapping paper.

Index numbers of wholesale 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—
January, 1919
July, 1919
August, 1919
September, 1919.
October, 1919. ...
November, 1919.
December, 1919..
January, 1920—

Farm
products.

Animal
products.

Forest
products.

102
108
116
163
242
234
261
251
240
254
276
288
290

106
97
102
136
176
208
233
235
215
212
212
209
214

97
94
95
99
130
147
166
193
227
234
239
259
273

In order to give a more concrete illustration
of actual price movements there are also presented in the following table monthly actual
and relative figures for certain commodities of
a basic character, covering the period July,
1919, to January^ 1920, compared with like




Mineral Total raw
products. materials.
91
90
112
181
172
179
177
180
184
184
183
186
190

107
148
184
196
214
218
216
220
226
233
239

Producers'
goods.

93
95
120
170
181
196
202
212
212
211
216
228
245

All commodities
Consumers' (Bureau of
goods. Labor Statisticsindex
number).
103
102
111
147
193
216
230
241
226
228
236
245
258

100
99
111
151
185
203
219
226
221
222
230
238
248

figures for January of previous years; also
for July, 1914, the month immediately preceding the outbreak of the great war. The
actual average monthly prices shown in the
table have been abstracted from the records of
the United States Bureau of Labor Statisticse

284

FEDERAL RESERVE BULLETIN.

MARCH, 1920.

Average monthly wholesale prices of commodities.
[Average price for 1913=100.]
Wheat, No. 2,
red winter,
Chicago.

Corn, No. 3.
Chica go-

Year and month.

July, 1914
January, 1915...
January, 1916...
January, 1917...
January, 1918...
January, 1919...
July, 1919
August, 1919....
September, 1919
October, 1919...
November, 1919.
December, 1919.
January, 1920...

Average
price per
bushel.

Relative
price.

$0.7044
.7056
.7356
.9753
1.6850
1.3750
1.9075
1.9213
1.5410
1.3888
1.4875
1.4485
1.4750

114
115
120
158
274
223
310
312
250
226
242
235
240

July, 1914
January, 1915...
January, 1916...
January, 1917...
January, 1918...
January, 1919...
July, 1919
August, 1919....
September, 1919
October, 1919...
November, 1919.
December, 1919.
January, 1920...

Average
price per
100
pounds.
$8.7563
6.9875
7.1400
10.6050
16.2125
17.4125
22.3875
21.6125
18.2100
14.7250
14.1438
13.6800
15.1250

$0.1331
.0783
.1205
.1735
.3105
.2850
.3377
.3125
.3078
.3538
.3963
.3990
.4035

Average
price per
bushel.

$0.8971
105
1.3527
62 !
95 ! 1.2894
137 i 1.9166
2.1700
244
2.2225
224
2.6800
266
2.5250
246
2.5350
242
2.6250
279
?.825O
312
3.0300
314
2.9313
318

Wool, Ohio, H I
grades, scoured.

Hogs, light,
Chicago.
Year and month.

Average Relaprice per tive
pound, i price,

Cattle, steers,
good to choice,
Chicago.

Hides, packers',
heavy native
steers, Chicago.

Rela- Average R , i Average Rela- Average Relative price per ttve
tive price per tive
price. bushel. P r i c e ' ! pounds. price. pound. price.
103
155
148
219
248
254
307
289
290
301
323
347
336

Hemlock, New
York.

8210
3910
2896
9024
1700
3788
2580
2394
2385
2394
2881
4490
6338

83
141
131
193
220
241
229
227
227
227
232
248
267

Yellow pine,
flooring,
New York.

$9.2188
8.5333
8.6650
10.5300
13.1125
18.4125
16.8688
17.6375
16.8050
17.5938
17.5000
17.0750
15.9375

108
100
102
124
154
216
198
207
198
207
206
201
187

$0.1938
.2300
.2300
.3350
.3280
.2800
.4860
.5200
.4638
.4820
. 4688
.4100
.4000

105
125
125
182
178
152
264
283
252
262
255
223
218

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

Rela- Average Rela- Average Rela- Average Rela- Average Rela- Average Relative price per tive price per tive price per tive price per tive price per tive
price. pound. price. M feet. price. M feet. price. long ton. price. short ton. price.
104
83
84
125
192
206
265
256
215
174
167
162
179

Coal, Pocahontas, Norfolk.

$0.4444
. 5143
.6429
.8143
1.4545
1.1200
1.2364
1.2364
1.2182
1.2634
1.2545
1.2545
1.2364

94
109
136
173
309
255
263
263
259
268
266
266
263

Coke, Connellsville.

$24.5000
24.2500
22.2500
24.5000
30.5000
36.0000
41.0000

101
100
92
101
126
149
169

43.0000
44.0000
44.0000
48.0000
53.0000

177
182
182
198
219

Copper, ingot,
electrolytic,
New York.

$42.0000
41.0000
39.5000
41.5000
57.0000
63.0000
73.0000
78.0000
95.0000
100.0000
100.0000
112.0000
112.0000

128
141
164
175
213
224
224
251
251

Lead, pig,
desilverized,
New York.

$4.9726
5.1767
5.2639
5.6899
6.5000
7.9500
8.1881
8.3145
8.4020
8.4135
8.4273
8.4098
8.4291

98
102
104
112
128
157
162
164
166
166
167
166
167

$2.2000
2.2000
2.2000
4.5000
3.6000
4.1000
4.0000
4.0000
4.5000
4.5000
4.1000
4.1000
4.1000

100
100
100
205
164
186
182
182
205
205
186
186
186

Petroleum, crude,
Pennsylvania,
Pig iron, basic.
at wells.

Year and month.
Average Rela- Average Rela- Average
price per tive price per tive price per
long ton. price. short ton. price. pound.
July, 1914
January, 1915
January, 1916
January, 1917
January, 1918
January, 1919
July, 1919
August, 1919
September, 1919.
October, 1919....
November, 1919..
December, 1919..
January, 1920....




$3.0000
2.8500
3.0000
6.0000
4.4120
4.6320
5.1400

100
95
100
200
147
154
171

5.1400
4.6320
4.6320
4.6320

171
154
154
154

$1.8750
1.6250
2.8750
7.2500
6.0000
5.7813
4.0950
4.2188
4.5920
4.8250
5.9375
6.0500
6.0000

77
67
118
297
246
237
168
173
188
198
243
248
246

$0.1340
.1300
.2288
.2960
.2350
.2038
.2150
.2281
.2220
.2172
.2038
.1873
.1931

Relative
price.
85
83
145
188
149
130
137
145
141
138
130
119
123

Average
price per
pound.
$0.0390
.0380
.0550
.0750
.0684
.0558
.0561
.0579
.0609
.0643
.0676
.0718
.0872

Rela- Average Rela- Average Relative price per tive price per tive
price. barrel. price. long ton. price.
89
86
125
170
155
127
128
132
138
146
154
163
198

$1.7500
1.4500
2.2500
2.8500
3.7500
4.0000
4.0000
4.0000
4.2500
4.2500
4.4375
4.6000
5.0625

71
59
92
116
153
163
163
163
173
173
181
188
207

$13.0000
12.5000
118100
30.0000
33.0000
30.0000
25.7500
25.7500
25.7500
25.7500
28.3125
34.6000

37.7500

88
85
121
204
224
204
175
175
175
175
193
235
257

285

FEDERAL RESERVE BULLETIN.

MARCH, 1920.

Average monthly ivholesale prices of commodities—Continued.
Cotton yarns,
northern cones,
10/1.

Leather, sole,
hemlock No. 1.

Steel billets,
Bessemer,
Pittsburgh.

Steel plates,
tank, Pittsburgh.

Steel rails, open
hearth, Pittsburgh.

Worsted yarns,
2-32's crossbred.

Year and month.
Average
price per
pound.
July, 1914
January, 1915
January, 1916
January, 1917
January, 1918
January, 1919
July, 1919
August. 1919
September, 1919
October, 1919
November, 1919
December, 1919
January, 1920

i $0.2150
\
. 1650 j
. 2100
\l
. 3400
. 5363
.5000
.5912
. 6130
. 5903
. 6111
.6648
.6986
. 7271

Relative
price.

Average
price per
pound.

Rela- Average
tive price per
price. long ton.

97
75
95
154
242
226
267
277
267
276
300
316
329

$0.3050

108 $19.0000
19.2500
115 32.0000
63.0000
203
174 47.5000
174 43.5000
188 38.5000
202 38.5000
202 38.5000
202 38.5000
41.3750
202
46.4000
202
199 48.0000

Beef, carcass,
good native
steers, Chicago.

.3250
.5700
.4900
.4900
.5300
.5700
.5700
.5700
.5700
.5700
.5600

Coffee, Rio No. 7.

Year and month.

Relative
price.
71
75
124
244
184
169
149
149
149
149
160
180
186

Average
price per
pound.
$0.0113
.0110
.0208
.0430
.0325
.0300
.0265
.0265
.0253
. 0261
.0265
.0265
.0274




$0.1350
.1300
.1375
.1375
.1750
.2450
.2075
.2350
.2275
.2290
.2350
.2350
.2320

104
100
106
106
135
189
160
181
176
177
181
181
179

$0.0882
.0725
.0763
.0975
.0853
.1547
.2303
. 2150
.1663
.1650
.1697
.1518
.1628

74
141
291
220
203
179
179
171
176
179
179
185

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

Average Rela- Average Rela- | Average Rela- Average
price
perj tive price per
price per tive price per tiye
p
p
y
price. pound.
barrel
pound. price. pound. price
price, barrel.
July, 1914
January, 1915...
January, 1916...
January, 1917...
January, 1918...
January, 1919...
July, 1919
August, 1919....
September, 1919
October, 1919...
November, 1919
December, 1919.
January, 1920...

Rela- Average
tive price per
price. long ton.

79 I $4.5938
65 I 6.8563
6.6438
9.2105
10.0850
77
10.2750
139
12.1550
207
12.0063
193
11.6200
149
148 12.0313
152 12.9500
14.0250
136
14.4438
146

100
150
145
201
220
224
265
262
254
262
283
306
315

$30.0000
30.0000
30.0000
40.0000
46.8000
57.0000
47.0000
47.0000
47.0000
47.0000
47.0000
47.0000
50.7500

106
93
96
117
177
210
230
231
209
174
172
174
177

100 |
100 i
100 j
133 !
156 j
190 |
157 !
157 I
157 !
157 |
157 !
157
169

Illuminating oil,
150° fire test,
New York.

Rela- Average
tive price per
price. gallon.

1.1769
.1538 !
.1588 ;
.1945 j
.2950 !
.3494 !
.3835 !
.3838 !
.3480
.2900 I
' I
.2944 !

Rela- ! Average
tiye price per
price, pound.

$0.1200
.1200
.1300
.1200
.1600
.1750
.2050
.2180
.2200
.2200
.2200
.2200
.2240

Relative
price.

SO.6500
.6200
.8800
1.2500
2.0000
1.7500
1.6000
1.6242
1,7500
1.7500
2.2000
2.2000
2.2500

115
161
257
225
206
209
225
225
283
283
290

Sugar, granulated,
N e w York.

Rela- Average Relative price per tiye
price. pound. price.
I
97
97
105
97
130
142
166
177
178
178
178
178
182

$0.0420 I
.0488 I
.0573 i
.0662 !
.0744 i
.0882! !
.0882
.0882
.0882 I
. 1085
.1537 I

98
114
134
155
174
207
207
207
207
207
207
254
360

DISCOUNT AND INTEREST RATES.
In the following tables 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 periods ending January
15 and February 15, 1920. A complete description of the several types
of paper for which quotations are given will be found in the September, 1918, and October, 1918, FEDERAL RESERVE BULLETINS.

Quotations

for new types of paper will be added from time to time as deemed of
interest.
During the period under review, the pronounced upward movement in
interest rates noted for some months past has continued in almost all centers. The increase is noted for practically all types of paper. Decreases
in rates are very rare, and occur almost without exception in high or low
rates. While remarked equally in high, low, and customary rates for interbank loans and bankers' acceptances, the increase is found more particu-

larly in low rates in the case of customers' commercial paper and of loans
secured by prime stock exchange or other current collateral, in both high
and low rates for commercial paper purchased in the open market, and m
both low and customary rates for paper secured by Liberty bonds and certificates of indebtedness. Comparison with rates prevailing during the
period ending February 15, 1919, reveals the fact that present rates are
higher in practically all centers and for practically all types of paper.
The increase is found in the greatest number of centers in the case of
paper secured by Liberty bonds and certificates of indebtedness, although
noted almost as frequently for collateral loans and for commercial paper purchased in the open market. The increase occurs almost equally in the case
of high, low, and customary rates, although for customers commercial paper
it is most frequently found in the low rates. Instances of decrease in rates
are very rare, and are confined largely to the low rates.

Discount and interest rates prevailing in various centers.
D U R I N G 30-DAY P E R I O D E N D I N G J A N . 15, 1920.

Prime commercial paper.
nistrict.

City.

Customers.
30 to 90
days.

4 to 6

Buffalo

Pittsburgh
Cincinnati
Baltimore
Atlanta
Birmingham..
Jacksonville...
New Orleans..
Nashville
Chicago
Detroit
St. Louis
Louisville
Memphis
Little Rock...
Minneapolis...
Kansas City...
Omaha
Denver
Dallas
El Paso
Houston
San Francisco.
Portland
Seattle
Spokane
Salt Lake City.

No. 5 . . . . Richmond

No. 8 . . . .

No. 9 . . . .
No. 10...
No. 1 1 . . .
No. 12...




days.

H.
6
6
6
6
6
6
6
6

No. 3 . . . . Philadelphia..
No. 4 . . . . Cleveland

No. 7 . . . .

30 to 90

months, i

6

6
6
6
6
6
5£
6
6
5£
6

1

L.
51
6
5
6
6
6
51
6

C.
6
6
6
6
6
6
6
6

4 to 6
L.
6
5
5
6
6
5|

C.
6
6
6
6
6
6

6

6
6
bh
5|
6
5i
6
51
51
6

6
6
6
6
6
5-J
6
6
51
6

loans.
Indorsed.

months.

H.
7
6
6
6
6
6

Ordinary
loans to
customers

Collateral loans—stock exchange
or other current.

Interbank
loans.

Open market.

No. 1 . . . . Boston
No. 2 . . . . New York i . . .

No. 6 . . . .

Bankers* acceptances,
60 to 90 days.

6
6
6
6
6|

6
6
5£
6
6.

6
6
6
6
6

6
6

6* 6 51 6

6
6
61
6
6

51
5
51
5*
6

f8 6f f7

6
6
6
5f
6

Unindorsed.

H. L C.
6
5-5*
6
a
0

f

0K

3m

h
™ t h s '| nSShs.

H.

H.
6
6
6
6
6
6
6
6
6

L.
6
5*
5
5*
6
5*
6
5J
6

6
6
6
6
6
6
6
6
6
7

aO

51
6
6 5^ 5*
6
6
6
6
6
8
6
6
6
6
6
6
5
6
6
6
7

5^
5^
5"
5J
6
6
5
5^
5^
5
5^
5"

6
6

5J

5-|
6
6
6
6

6
6

6
5

6
6

7
6

6 7
6J 6

6-6*

51

5*
6
5
5i 6
6
5* 6
6
5
7 6 6
6
7 6
6 6
6
8
8
6
6
6
5
5* 5* 5i
6 6
6
8
6
6
6
6 6
7 6
'

41

5}

6

•

6

H. L. C. H. L. C.

.16
.! 6
.1 6

5 6-6JJ 7

5|

6

6-6*

5| 6
5

i

6

i

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

6

5§ 6
6 6

s| 6
5h 6

6
7
5
5|

6
6-7

i6 6 6
6 I 6 5| 6

6

7
8
6
6

8

7

8
10
8

6 5
5J 4 | 5
6 41 41-5
7 51 6
6 6

6 6
6 6
5J 6

H.
6
6
6

C.
SJ

5-6
6

9

. 8
7

•V
r

certificates
ofindebtedness.

3 to 6

Demand.

10
5-5| 25

| recapts,

6

7

6
6
6
7

6
6
8
7

5i 6

6
6
6
6
8

6-7 8
6
6
8
8

5J

5-6
51

DURING 30-DAY PERIOD ENDING FEB. 15, 1020.
Prime commercial paper.
Customers.

District.

30 to 90
days.

No. 1 . . . . Boston
No. 2 . . . . New York i . . .
Buffalo
No. 3 . . . . Philadelphia..
No. 4 . . . . Cleveland
Pittsburgh
Cincinnati
No. 5 . . . . Richmond
Baltimore
No. 6 . . . . Atlanta
Birmingham..
Jacksonville...
New Orleans..
Nashville
No. 7 . . . . Chicago
Detroit
No. 8 . . . . St. Louis
Louisville
Memphis
Little Rock...
No. 9 . . . . Minneapolis...
No. 10... Kansas City...
Omaha
Denver
No. 1 1 . . . Dallas
El Paso
Houston
No 12... San Francisco.
Portland
Seattle
Spokane
Salt Lake City.




Open market.

Interbank
loans.

City.
4 to 6
months.

30 to 90
days.

L. C.
6 6i

6

6i 6
6 Si
64 6
64 6
7 6
6£ 6
8
6
7

9 S
02 6
6
6

61

6

6* 6
7 6
6* 6

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

61

6
6

64. 6
6
6

6
6

6

6

61 6

6

64
6}
6
61
6

6i
6i
6i
6

5
51
6
61
54.

5i
51
6
6

H.
6
6
6
6

L.
5
51 54,-6
6 6
54

7
6
6
6
8

6
5i
6
5i
6

Unindorsed.

6i
6i
6
6
6
5i
6
61
6
6
6
6

64. 64. 6 i
7
7

7
6 7
54. 54,-64. 7

6
6

61
5i
5
6
6
6

6
6
6
6
64.

5

6

6
6
6
6

6
6
7

7
6-64.

5i-5|

51 5 5
54. 5f 5i

51

5§ 54. 5f

51 6

51

6i
6
6
8

I!
f
5i 6
6
6
8

Demand.

H. L. C. H. L.. C. H.
5 | 54 554. 10
5i 5f 5|
f 6i-6 25
6 4| 5 i 5 | 6
7
6
5! 6}

61

6 6
6
6
6 6-64.

6
6i
5i
6
5
51
6
61
54
i
51
6
6

Indorsed.

6

64 6
6 6
6

Cattle
loans.

4 to 6
months.

//. L.
64,

Ordinary
loans to
customers
Secured by secured by
warehouse
Liberty
receipts,
bonds and
etc.
certificates
of indebtedness.

Collateral loans—stock exchange
or other current.

Bankers' acceptances,
60 to 90 days.

6i 6i 6*
6

54. 5i

51 5 SJ
7 5£ 6

6

5i

7

5| 6

7
6
7
6
6
8
8
8
8

3 months.

L.
8
5i
5
54.

3 to 6
months.

L.
6

a

//. L. C.

C.

H. L. C.

7

5
5
6
6
7

6
5
7
54.
6
6
6
6
6

6
6

2

8
6-7

7

7 6
6 6
6 6
6
8 6
7
8 6i
7
8 5
6-7 7 6
64. 8
5i
6 6
8 6
6 64. 8 6
6 54.
54. 6

?

8
8
8
8

6
6
6
7

6
6
6
7
6
6

*6

6
6

54. 6
6
7
6
7
7
8

6
6
6
6
6
7
6
6
6
6
6
6
64.-7

6

7

6-7
7
6-7
6
6

6

5i

51 6
5-64.
6
6
6
6
6
6

6
7
7
6-7
6*
6
6
8

8
8
8
10

6
6
6
6

V

6* 61 6*
6-7 8 6 6-7
7
6
8 8 6 8

6-7
7

6i
6
6
7

7

8

7i 7

i Rates for demand paper secured by prime bankers' acceptances, high 6, low 51.

to
00

288

MARCH,

FEDERAL RESERVE BULLETIN.

PHYSICAL VOLUME OF TRADE.
In continuation of tables in the Februaiy
there are presented in the following tables certain data
relative to the physical volume of trade. The
FEDERAL RESERVE BULLETIN

1920.

January, 1919, issue contains a description of
the methods employed in the compilation of
the data and the construction of the accompanying index numbers. Additional material
will be presented from time to time as reliable
figures are obtained.

Livestock movements.
[Bureau of Markets.]

I

Receipts.
Cattle and \ H
fift
calves, 60 j| markets
markets.
markets.
1919.
January
July.../.
August
September
October
November
December
1920.

!
|

January

Shipments.

Sheep, 60
markets.

Horses and
mules, 44
markets.

Total, all
kinds.

Cattle and
calves, 54
markets.

Head.
9,673,279
7,232,735
7,415,996
8,730,020
9; 863,616
9,347,244
9,674.579

Head.
2,113,460
2,007,266
2,019,139
2,377,054
2,989,090
2,680,042
2,169,631

Head.
5,879,525
2,998,836
2,103,609
2,401,677
3,144,831
3,775,589
5,024,650

Head.
1,571,823
2,177,942
3,211,331
3,810,441
3,605,198
2,751,421
2,393,632

Head.
108,471
48,691
81,917
140,848
124,497
140,192
86,666

1,868,723

5,275,412

1,560,051

138,541

Horses and

Hogs, 54
markets.

Sheep, 54
markets.

Head.
763,068
706,813
894,816
1,150,183
1,532,297
1,374,452
967,348

Head.
1,565,451
963,662
690,821
860,614
1,103,837
1,308,095
1,608,292

Head.
612,029
997,338
2,014,267
2,466,937
2,159,531
1,597,007
2,409,482

Head. \
109,304
43,738
74,268 i
135,724 i
125,701 !
134,679 !
86,534

Head.
3,049,852
2,711,581
3,674,172
4,613,458
4,921,366
4,414,233
5,071,656

753,113

1,665,324

669,850

138,145 j

3,226,432

1,842,727 I

\

Receipts and shipments of live stock at 15 western markets.
[Chicago, Kansas City, Oklahoma City, Omaha, St. J^ouis, St. Joseph, St. Paul, Sioux City, Cincinnati, Cleveland, Denver, Fort Worth, Indianapolis, Louisville, Wichita.]
KECEIPTS.
[Monthly average, 1911-1913=100.]
Cattle and calves.
Head.

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

1919.

1920.

'.

l

Relative.

Hogs.

Head.

Relative.

Head.

Horses and mules.

Sheep.

1,656,046
1,527,881
1,541,133
1,871,042
2,317,487
2,046,664
1,650,315

164
152
153
186
230
203
164

4,603,335
2,411,539
1,595,759
1,704,944
2,160,079
2,715,955
3,785,870

209
110
73
78
98
124
172

1.400,031 j

139

3,912,449

178 j 1,035,591

1,079,377
1,558,767
2,220,229
2,890,831
2,405,511
1,743,189
1,589,237

Relative.

79
114
162
212
176
128
116

Head.

Relative.

Total, all kinds.
Head.

I Relative.

56,631
37,866
57,206
88,283
79,240
84,018
53,453

123
82
124
192
172
183
116

7,395,419 !
5,536,053 !
5,414,327
6,555,100 I
6,962,317 I
6,589,826 i
7,078,875 i

90,662

• 197

6,438,733 ]

160
120
117
142
151
143
153

SHIPMENTS.

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




1919.

1920.

'993! 148
686,325

145
127
160
214
284
244
169

988,035
691,283
455,705
501,856
654,755
788,107
1,003,682

204
143
94
104
135
163
207

357,386
694,942
1,352,252
1,849,958
1,382,419
945,992
682,439

71
138
269
367
275
188
136

56,282
32,836
49,996
83,264
80,828
78,889
55,831

137
80
122
203
197
192
136

1,991,065
1,934,132
2,508,205
3,307,121
3,272,997
2,806,136
2,428,277

139
135
175
230
228
195
169

548,841

135

1,026,763

212

403,382

80

90,630

221

2,069,616

144

589,362
515,071
650,252
872,043

MARCH, 1920.

289

FEDERAL RESERVE BULLETIN.
Exports of certain meat products.
[Department of Commerce.]
[Monthly average, 1911-1913=100.]

Beef, canmed.

Pounds.
1919.
January — 12,636,060
5,392,104
July
2,894,361
August
September . 1,213,709
1,793,784
October
November.. 1,393,238
December.. 1,886,835
1920.
January

1,081,643

Beef, pickled,
and other cured.

Beef, fresh.

Hams and shoulders, cured.

Bacon.

Relative.

Pounds.

Relative.

Pounds.

Relative.

Pounds.

Relative.

1,907
814
437
183
271
210
285

17,436,495
8,680,524
8,075,366
7,285,951
31,178,216
15,694,002
6,061,769

1,406
700
651
587
2,513
1,265
489

6,030,937
3,320,564
2,494,113
3,523,887
3,402,422
2,997,652
3,135,069

226
124
93
132
127
112
117

101,000,122
117,679,193
84,150,778
57,179,511
56,462,312
65,288,694
58,982,754

603
703
502
341
337
390
352

163

22,872,223

1,844

1,670,500

63

77,501,002

463

Lard.

Pickled pork.

Rela*
tive.

Pounds.

Relative.

Pounds.

54,846,433
47,452,834
40,147,727
18,209,239
13,090,972
16,844,285
15,688,297

367
318
269
122
88
113
105

37,850,338
68,163,734
48,968,628
36,960,364
41,016,518
42,106,339
63,645,722

86
155
111
84
93
96
145

2,273,683
2,892,515
2,117.796
2,792,439
3,804,290
4,934,696
4,125,550

51
54
48
63
86
HI
93

13,905,923

93

38,823,902

88

4,251,187

96

Pounds.

Rela»
tive.

Receipts of grain and flour at 17 interior centers.
[Chicago, Cleveland, Detroit, Duluth, Indianapolis, Kansas City, Little Rock, Louisville, Memphis, Milwaukee, Minneapolis, Omaha, Peoria
St. Louis, Spokane, Toledo, Wichita: receipts of flour not available for Cleveland, Detroit, Indianapolis, Louisville, Omaha, Spokane,
Toledo, and Wichita.]
[Compiled from reports of trade organizations at these cities.]
[Monthly average, 1911-1913=100.]
Wheat.

Corn.

Oats.

Rye.

Total grain.

Barley.

RelaRelaI RelajRelai Bushels. ; tive. Bushels. tive. Bushels. tive. Bushels. tive. BllShels.
1919.
January.,
July
August...
Sept'ber..
October..
Nov'ber..
Dec'ber...

24,652,641 j
49,612,1151
80,714,559:
69,953,295;
51,006,164;
35,729,832!
30,582,779!

1920.
!
I
J a n u a r y . . 125,074,624

9128,731
18412,549;
299 8,503,
26016,267,
18912,490,
13314,606,
113 23,983,
93;24,139,094j

!

Total

Flour.

fl ^f r

inand

RelaRelaBushels. Relative. Barrels. tive. Bushels. tive.

128122,945,659
56 25,233,109
38 29,774,582
72 26,721,030
56 24,323,974
6517,699,925
10715,592,282

114 5,>, 615,054
125 3i
5,105,486
147 3J,; 824,263
132 5,>, 446,371
120 4]
1,472,397
88 2,
J, 579,579
77 2.
1,876,636

507
281
345
492
404
233
260

8,943,782
8,627,091
6,638,871
5,294,256
4,369,326
3,582,873
3,769,859

125 90,888,523
120 99,127,020
93129,455,557
74123,682,097
96,661,968
74,198,346
76,805,213

1171 ,396,888
1271 ,572,420
166 2^1,283,145
159 3]
t, 073,034
124 3,1,468,787
95 3,!, 541,957
99 2,371,262
2!

71 97,174,519
80106,202,910
117131,738,702
,510,750
177112,271,510
181 90,137,153
121 87,475,892

112
122
152
159
129
104
101

108 20,925,941

104 4,378,610

396 3,298,544

46 77,816,813

100 2,298,692,!

117 88,160,927

102

i Flour reduced to its equivalent in wheat on basis of 4J bushels to barrel.

Shipments of grain and flour at 14 interior centers.
[Chicago, Cleveland, Detroit, Duluth, Kansas City, Little Rock, Louisville, Milwaukee. Minneapolis, Omaha, Peoria, St. Louis, Toledo, Wichita;
shipments of flour not available for Cleveland, Detroit, Louisville, Omaha, Toledo, and Wichita.]
Wheat.

Corn.

Oats.

Barley.

Rye.

Total grain.

Total grain a n d
flour.i

Flour.

Rela- Bushels. Rela- Bushels. Rela- Bushels. Rela- Barrels. Rela- Bushels. RelaRelaBushels. Relative.
tive.
tive.
tive.
tive.
tive. Bushels. tive. Bushels. tive.
1919.
January.
July
August..
Sept'ber.
October.
Nov'ber.
Dec'ber..

9,934,531
12,423,422
36,986,491
37,730,048
25,813,130
20,877,718
17,383,075

1920.
January. 17,514,087




!,488,569
6413,'
81 8,102,275
240 5,135,459
245 6,622,779
167 7,116,502
135 6,609,629
11311,509,719

9519,769,237
5715,628,503
3617,919,623
4716,651,580
5016,705,015
4715,582,081
8112,433,716

130 794,028
10311,546,100
1181,436,377
110 2,317,740
1101,426,528
103 3,110,541
82 2,255,139

114 12,326,051

87 15,822,099

104 3,685,914

112
218
203
327
202
439
319

4,718,631
9,133,000
5,028,674
2,943,167
3,087,951
2,827,956
2,624,376

52 2,007,718

48,704,996
46,833,304
66,506,624
66,265,314
54,149,126
49,007,925
46,206,025

99 2,796,463
95 2,589,176
135 3,805,273
134 4
'"14,787,300
110) 5,975,261
J
) 5,604,616
93 4,470,122

83
76
112
141
176
165
132

61,289,080
58,484,596
83,630,353
87,808,164
81,037,801
74,228,697
66,321,574

95
90
129
136
125
115
103

51 51,355,869

104 4,140,314

122 69,987,282

108

121
234
129
75
79
73
67

Flour reduced to its equivalent in wheat on basis of 4J bushels to barrel.

290

FEDERAL RESERVE BULLETIN.

MARCH, 1920.

Receipts of grain and flour at nine seaboard centers.
[Boston,New York, Philadelphia, Baltimore, New Orleans, San Francisco, Portland (Oreg.), Seattle, Tacoma; receipts of flour not available for
Seattle and Tacoma.]
[Compiled from reports of trade organizations at these cities.]
[Monthly average, 1911-1913=100.]
Wheat.

Corn.

Total grain.

Barley.

Rye.

Oats.

RelaRelaRelaIRelaRelaBushels. tive. Bushels. I tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels.
1919.
January.
July
August..
Sept'ber..
October..
Nov'ber.

78 1,411,366
46 901,8421
214
815,1321
222 512,072
117 507,065
73 438,147

9,768,801
5,806,227
26,902,757
28,010,858
14,755,827
9,152,534

1

40
25
23
14
14
12

9,275,187
6,959,186
5,676,984
5,345,464
4,335,038
3,998,525

195 566,191 398 1,738,326
1461,[,479,951 1,042 9,723,852
45 4,993,395
119 " 64,510
377 2,171,521
113 535,701
911:, 718,701 1,210
796,839
84 I![,391,024
851,651

105
586
301
131
48
51

Total grain and
flour.*

Flour.

RelaRelative. Barrels. tive. Bushels.

22,759,871
24,871,058
38,452,778
36,575,616
22,113,470
15,831,881

1002,026,246
1101,514,135
1691,385,762
1612,306,213'
972,521,3291

194
145
133
221
241
149

701,552,796!

Relative.

31,877,978
31,684,666
44,688,707
46,953,575
33,459,451
22,819,463

119
116
163
171
122
83

Flour reduced to its equivalent in wheat on basis of 4 J bushels to barrel.

Stocks of grain at eight seaboard centers at close of month.
[Boston, New York, Philadelphia, Baltimore, New Orleans, Newport News, Galveston, San Francisco.]
[Compiled from reports of trade organizations at these cities.]
[Bushels.]
Wheat.
1919.
January
July
August
September..
October
November..
December..

Corn.

15,365,491
5,557,644
17,396,269
21,171,440
25,322,242
18,728,730

645,317
265,196
155,491
172,254
82,240
155,490

Rye.

Oats.

5,495,937
3,760,063
2,216,989
1,901,510
1,898,271
2,504,833

Barley.

1,972,696
867,491
578,250
516,142
483,270
1,264,494

Total grain.

3,047,346
5,528,176
5,414,183
4,061,830
3,079,360
2,351,012

26,526,787
15,978,570
25,761,182
27,823,176
30,865,383
25,004,559

1920.

January.

NOTE.—Figures for San Francisco include also stocks at Port Costa and Stockton.

Cotton.
[New Orleans Cotton Exchange.]
[Crop years 1911-1913-= 100.]

Sight receipts.

Bales.

August
September
October
November
T)fip,ftrnVkp.r

January




1919-20.
313,301
584,776
1,779,927
2,369,177
2,147,365
1,460,074

Relative.

25
47
142
189
171
116

Port receipts.

Bales.

238,271
260,698
1,029,331
1,178,443
1,069,693
982,030

Relative.

26
28
112
128
116
107

Overland movement.

Bales.

49,630
26,138
110,202
245,237
242,940
138,685

Relative.

47
25
105
233
231
132

at ports and
American spinners' Stocks
interior towns at
takings.
close of month.
Bales.

302,238
300,001
621,784
1,155,324
1,214,337
802,841

Relative.

67
66
137
254
267
177

Bales.

1,412,048
1,501,805
2,340,881
2,616,383
2,765,040
2,470,496

Relative.

120
127
199
222
235
210

MARCH, 1920.

291

FEDERAL, RESERVE BULLETIN.
California shipments of citrus and deciduous fruits.
Oranges.

Carloads.

Lemons.

Relative.

Carloads.

Total
deciduous
fruits.

Total citrus fruits.

Relative.

Carloads.

Relative.

Carloads.

1919.

January
July
August
September.
October
November.
December-.

3,120
2,568
1,785
1,840
2,706
3,257
3,592

128
105
73
75
111
133
147

531
1,038
436
414
572
442
271

131
256
108
102
141
109
67

3,651
3,606
2,221
2,254
3,278
3,699
3,863

128
127
78
79
115
130

109
4,199
6,601
6,781
5,529
2,141
197

2,457

100

630

156

3,087

108

123

1920.

January.

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

Receipts.

Raw stocks
at close of
month.

Meltings.

Receipts.

Raw stocks
at close of
month.

Meltings.

1919.

1919.
January.
July.,
August
September..
October

243,806
394,557
333,686
352,345
279,962

66,189
115,341
85,650
55,644
55,333

197,145
435,247
356,048
385,618
279,348

November.
December..

January.,

183,084
73,504

180,425
113,917

55,073
14,587

243,201

221,984

36,055

1920.

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

Tons.

Relative.

Tons.

Relative.

1919.

January
July
August
September
October

172,054
264,782
246,419
262,137
233,650

93
144
134
142
127

147,000
292,000
229,000
292,000
216,000

|

Raw stocks at
close of month.

Meltings.

Receipts.

80
159
125
159
118

i
| Tons.

Relative.

Tons.

36,544
57,975
75,394
45,531
63,181

21
34
44
26
37

1919.
November
December

^ a w stocks at
j close of month.

Moittnoe
Meltings.

Receipts.

Relative.

Relative.

Tons.

Relative

Tons.

!
! 154,674
96,342

84
52

177,000
126,765

96
69

40,855
10,432

24
6

208,554

113

181,000

99

37,986

22

1920.
January

Naval stores.
[Data for Savannah, Jacksonville, and Pensacola.]
[In barrels.]
[Compiled from reports of trade organizations at these cities.]
Spirits of turpentine.

Spirits of turpentine.

Rosin.

Stocks at
Stocks at
I Receipts. close of Receipts. close of
month.
month.

January
July
August
September
October




1919.

i
!

125,541 |
7,645
30,656
27,747
21,013 ! 24,756 !
27,021 !
21,574
27,389 !
19,367

34,835
77,062
74,402
72,616
67,080

285,808
235,707
203,812
190,580
186,231

Rosin.

Stocks at
Stocks at
! Receipts. close of Receipts. close of
month.
month.

November
December
January

1919.
18,757
17,252

28,741
30,924

77,125
77,221

204,281
200,333

8,300

24,910

47,874

165,027

1920.

292

FEDERAL RESERVE BULLETIN.

MAKCII, 1920.

Lumber.
[From reports of manufacturers' associations.]
[M feet.]

1919.

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

200 330,137
206 401,939
204 417,036
202 416,640
201 421,025
202 391,347
198 353,923

325,241 21,49
48
466,786
48
423,002
51
372,727
52
356,124
51
344,717
51
363,176

1920.
January....

202

404,706

53

Eastern white pine.

North Carolina pine.

!

NumShip- Numof Producber of Producments. ber
mills. tion.
mills. tion.

386,481

Douglas fir.

Western pine.

Southern pine.

ents

40,354
148,533
152, 748
154,102
156,828
110,525
65,989

Num- Produc- Ship- Num- Produc- ShipProduc- Ship- ber
of tion.
of
ments. ber
tion.
ments. mills.
ments.
- j mills.
mi] Is. tion.

122
114
118
126
124
126
93,377 i 129

68,910
140,680
140,236
138,537
143,252
117,472

I
i
!
i
!
!

69,895
8o I 144,180 j 128

225,688
268,634
416,422
332,905
419,108
324,511
227,331

227,129
301,050
397,290
261,797
339,321
241,301
176,935

327,568 | 344,568

21

7,565
27,382
20,247
16,913
12,888
2,786
4,776

15,172
22,470
26,839
22,574
18,139
21,596
17,840

28,629
22,326
27,177
33,146
24,055
24,925
19,048

23,896
34,191
30,159
35,468
22,079
26,926
26,241

38,007 |

63,614

24,678

26,283

RECEIPTS AND SHIPMENTS OF LUMBER AT CHICAGO.
[Chicago Board of Trade.]
[Monthly average, 1911-1913=100.]
Shipments.

Receipts.
M feet.

Januarv...
July..:
August
September
October

Receipts.

Relative.

Relative.

M feet.

1919.
134,604
200,148
170,385
205,909
208,638

Shipments.

47,
90,
87,
93,
95,

922
134
953
120
674

November
December

62
118
115
121
125

Januarv

1919.

176,972
226,617

70,175
79,553

107

92
104

1920.
8,145

71,233 I

93

Coal and coke.
[Bituminous coal and coke, U. S. Geological Survey; Anthracite coal, Anthracite Bureau of Information.]
[Monthly average, 1911-1913-100.]
Bituminous coal, estimated m o n t h l y
production.

Anthracite coal, shipments over 9 roads.

Beehive c o k e , estimated monthly production.

Long tons, j Ilelative. Short tons.

Short tons.

Relative.

41,485,000
42,754,000
42,880,000

112
115
116
128
147
55

5,934,241
6,052,334
6,144,144
5,687,401
6,560,150
5,971,671
6,138,460

105
108
109
101
117
106
109

2,401,567
1,512,178
1,733,971
1,790,466
1,551,980
1,680,775
1,721,000

133

5,713,319

102

1,982,000

Relative.

1919.
January
July
August

:

September..
October
November.
December..

!
|
I

47,403,000
54,579,000
20,303,000
36,612,000
1920.

January.




49,419,000

92
58
66
6$
59
64
66

M A R C H , 1920.

293

FEDERAL RESERVE BULLETIN.
Movement of crude petroleum in United States.
[U.S. Geological Survey.]
[Barrels of 42 gallons each.]
Marketed.

Marketed.
Barrels.

January
July
August
September
October

Stocks at end
of month
Relative.
(barrels)-

1919.
30,196,000
33,894,000
33,862,000
33,667,000
33,319,000

158
177
177
176
174

127,777,000
140,093,000
136,467,000
137,131,000
135,461,000

Barrels.
November
December
January

Relative.

Stocks at end
of month
(barrels).

32,114,000
32,508,000

168
170

131,601,000
129,022,000

33,980,000

177

127,164,000

1920.

I

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

Gasoline
(gallons).

Kerosene
(gallons).

1918.

I
i

20,958,157

291,744,465

161,742,713

587,873,987

64,987,842

1919.

!
I
I
!
i
!
!
|
i
!
!
I
!

26,967,332
25,232,876
27,866,775
27,775,217
30,267,227
28,920,764
31,202,522
32,362,057
32,601,044
33,682,968
32,213,754
32,427,617

303,710,556
283,518,194
311,306,755
319,807,838
354,472,377
338,336,985
342,491,757
326,846,167
339,582,564
363,456,747
338,667,570
335,659,587

158,501,260
164,181,787
170,290,930
183,453,728
190,345,026
178,974,224
205,727,289
219,502,888
199,244,293
227,104,346
214,829,925
229,476,468

589,030,056
553,853,753
574,774,156
588,808,408
652,166,738
632,205,805
638,185,469
085,702,461
683,409,074
080,158,440
663,309,514
685,084,086

68,304,613
62,503,072
67,063,995
70,954,128
76,442,252
64,636,153
67,037,414
72,920,214
70,236,692
78,658,410
75,962,212
72,040,862

138,853,574

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

;

Gas and fuel
(gallons).

Lubricating
(gallons).

STOCKS AT CLOSE OF M O N T H .

1918.
Dec. 31.

15,749,771

297,326,983

380,117,829

659,001,357

15,380,185
14,820,601
15,106,361
15,184,844
16,372,314
16,775,723
15,304,915
15,131,549
13,925,441
14,091,945
13,983,716
13,143,285

383,212,692
458,449,187
546,062,429
593,616,170
594,035,688
593,896,610
514,919,358
434,531,446
371,125,419
354,160,071
378,133,185
446,793,431

332,393,181
303,062,436
294,677,623
276,356,837
244,635,631
252,542,434
279,855,061
296,065,646
311,843,057
329,160, 795
347,076,560
339,319,690

646,411,414
158,370,431
692,816,000
152,297,163
749,067,806
165,495,254
807,895,498
170,122,088
788,740,572
173,754,109
811,790,637
175,384,775
817,809,519
173,884,303
830,329,785
170,572,819
862,135,385 ! 158,967,070
828, 574,452
152,536,736
791,052,991
149,193,143
714,124,455
137,318,934

1919.
J a n . 31
Feb. 28
Mar.31
Apr. 30
May 31
J u n e 30
July 31
Aug. 31
Sept. 30
Oct. 31
Nov.30
Dec. 31




294

MARCH, 1920.

FEDERAL RESERVE BULLETIN.

Iron and steel.
[Great Lakes iron-ore movements, Marine Review; pig-iron production, Iron Age; steel-ingot production, American Iron and Steel Institute.
[Monthly average, 1911-1913=100; iron ore, monthly average, May-November, 1911-1913-100.]
Iron-ore shipments
from the upper
Lakes.

Pig-iron production.

Steel-ingot production.

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

Gross tons. Relative. Gross tons. Relative. Gross tons. Relative, j Gross tons. Relative.
!
January
July........
August
September..
October....
November..
December..
January.

1919.
9,173,429
4,423,133
8,178,483
6,201,883
3,152,319

151
73
135
102
52

1920.

3,302,260
2,428,541
2,743,388
2,487,965
1,863,558
2,392,350 !
2,633,268

143
105
118
107
80
103
114

3,107,778
2,508,176
2,746,081

130
104
114

6,684,268
5,578,661
6,109,103
6,284,638
6,472,668
7,128,330
8,265,366

127
106
116
119
123
135
157

3,015,181

130

2,966,662

123

9,285,441

176

Imports of pig tin.
[Department of Commerce.]
[Monthly average, 1911-1913-100.]
Pounds.

January
July....
August.
September
October

1919.

,

Relative.

8,461,444
113,120
9,872,459
11,087,403
16,210,512

1
109
122
178

Pounds.
1919.
November
December
1920.

January

Relative.

15,233,671 1
12,940,125

168
142

8,772,953

97

Raw stocks of hides and shins.
[Bureau of Markets.]
[In pieces.]
Cattle
hides.

Jan. 31
July 31
Aug. 31
Sept. 30
Oct. 31
Nov.30
Dec. 31
Jan. 31

1919.

1920.

NOTE.— Figures for Jan. 31 are provisional.




Sheep and
lamb.

Calfskins.

Kipskins.

Goat.

5,922,514
4,966,081
5,498,844
6,158,289
6,436,765
6,918,534
7,349,146

1,294,949
2,389,368
2,145,320
2,055,084
2,007,208
1,844,737
2,117,442

515,523
554,516
585,269
947,546
1,097,039
1,088,173
1,122,156

4,239,381
15,589,944
18,263,446
16,749,664
15,302,942
14,248,671
15,984,179

245,815
1,964,828
880,276
823,740
2,239,604
331,389
752,055

601,686
2,767,694
2,348,769
2,736,802
2,574,499
2,684,084
2,092,425

6,844,680
6,815,160
7,126,885
8,661,215
10,122,930
9,398,712
9,296,812

6,549,550

1,570,718

965,336

12,849,532

926,677

1,887,026

8,763,643

Kid.

Cabretta.

MABCH, 1920.

295

FEDERAL RESERVE BULLETIN.
Textiles,

(Silk, Department of Commerce; cotton, Bureau of the Census; wool, Bureau of Markets; idle machinery, January-September, 1918, inclusive;
National Association of Wool Manufacturers.]
[Cotton, monthly average crop, years 1912-1914—100; silk, monthly average 1911-1913-100.J
Percentage of idle woolen machinery on first of month
to total reported.

Cotton consumption.

Bales.

1919.
January
July....
September .
November
December
1920.
January
February

Imports of raw silk.

Cotton
spindles
active
during
month.

Wool consumption
(pounds).

Relative.

Looms.

Spinning spindles.

Wider Under Sets of Combs.
than 50- 50-inch cards.
Woolen. Worsted.
inch reed reed
space.
space.

Pounds.

Relative.

556,883
509,793
502,536
491,313
555,344
490,698
511,585

124
113
112
109
123
109
114

33,866,228
34,184,407
34,187,310
34,216,662
34,307,367
34,483,775
34,594,214

32,573,970
54,973,093
48,938,476
52,985,961
60,018,415
52,428,854
55,566,253

40.3
22.0
22.1
19.9
16.0
14.8
13.9

32.6
26.0
24.9
22.8
20.7
18.2
19.1

32.2
9.7
9.4
8.1
8.2
7.6
10.5

30.7
7.6
6.5
5.5
5.9
5.3
5.3

36.5
8.9
8.9
7.9
7.7
6.7
8.4

37.5
13.5
10.9
12.8
7.2
6.7
6.2

1,461,827
5,202,407
3,802,500
6,755,271
3,955,845
4,841,407
3,576,585

71
254
186
330
193
237
175

591,725

132

34,739,071

72,700,000

14.5
12.2

18.5
17.6

8.8
7.6

7.2
6.9

9.1
7.1

10.2
7.9

4,855,989

237

Production of wood pulp and paper.
[Federal Trade Commission.]
[Net tons.]

1919.
January . .
July.......
August
September.
October

Wood
pulp.

Newsprint.

B

283,270
260,685
260,987
266,915
308,710

116,154
113,929
113,413
111,434
125,216

70,443
75,613
82,737
81,024
89,440

°°*- ass.
140,859
169,593
189,782
184,897
202,524

Wrapping.

Fine.

50,490
63,769
64,861
63,353
67,110

27,675
30,036
33,122
31,923
34,808

Wood
pulp.

Newsprint.

1919.
November
December.

147,672
306,617

116,603
122,781

1920.
January..,

302,541

Paper
board,

Wrapping.

Fine.

84,085
88,779

182,940
174,649

63,394
62,288

32,468
31,014

129,663 96,419

211,934

70,109

32,886

Sale of revenue stamps for manufactures of tobacco in the United States (excluding Porto Rico and Philippine Islands).
[Commissioner of Internal Revenue.]
Cigarettes.

Cigars.

Manufactured
tobacco.

Large.

Small.

Small.

1918.
December

Number.
527,586,098

Number.
59,139,250

Number.
2,788,379,210

Pounds.
25,276,695

1919.
January
February
March
April
May

518,708,482
476.329,947
549,098,351
510,357,494
551,659,749

72,458,974
60,138,630
84,493,873
73,314,273
57,611,547

3,079,212,253
3,126,274,662
3,845,079,275
2,650,182,742
2,767,699,400

29,308,616
27,472,269
29,227,678
29,883,710
33,340,102




Cigars.

1919.
June
July
August
September
October
November
December

Cigarettes.

Large.

Small.

Small.

Number.
576,976,572
569,908,339
533,227,393
575,777,829
677,622,154
655,421,893
662,046,997

Number.
48,855,070
47,500,287
54,953,647
53,735,960
64,170,793
56,080,813
45,491,540

Number.
3,140,393,217
3,585,030,983
3,918,403,687
4,283,247,387
5,028,875,337
4,768,598,203
4,578,641,450

Manufactured
tobacco.
Pounds.
31,312,150
33,838,667
35,568,246
36,623,005
39,335,546
32,965,088
29,409,443

296

FEDERAL RESERVE BULLETIN.

MARCH,

1920.

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

Domestic Foreign
com- Domestic. Foreign.
shipped. pleted.
1919.
January
July
August
September
October

Output of cars.

Locomotives.

Output of cars.

Locomotives.

Domestic Foreign
com- Domestic. Foreign.
shipped. pleted.

Total.

Number. Number; Number. Number. Number.
11,807
8,172
3,635
282
84
9,713
2,777
6,936
121
73
23,524
18,509
5,015
160
173
24,282
19,980
4,302
111
51
14,160
10,445
3,715
89
55

Total.

Number. Number. Number. Number. Number.
11,589
39
8,967
2,622
23
6,934
103
4,506
2,428
42

1919.
November
December
1920.
January

48

22

4,650

6,564

1,914

Vessels built in United States, including those for foreign nations, and officially numbered by the Bureau of Navigation.
[Monthly average, 1911-1913=100.]
Number.
1919.
January
July
August
September
October

132
245
238
202
210

Gross
tonnage.

264,346
397,628
455,338
378,858
357,519

Relative.

1,094
1,645
1,884
1 568
1,479

November.
December..
January.

1919.

1920.
1,049

Tonnage of vessels cleared in the foreign trade.
[Department of Commerce.]
[Monthly average, 1911-1913=100.]
Net tonnage.

American. Foreign.

1919.
Januarv
July
.....
August
September
October

1,166,391
2,362,571
2,957,249
2,627,480
2,645,778

1,896,123
2,920,247
2,797,818
2,481,676
2,073,560

Total.

3,062,514
5,282,818
5,755,067
5,109,156
4,719,338

Net tonnage.

Percentage of Relative.
Rela- Amerito
tive. can
total.

78
136
148
131
121

38.1
44.7
51.4
51.4
56.1

151
177
203
203
222

American. Foreign.

Total.

Percentage of Relative.
Rela- Amerito
tive. can
total.

1919.
November
December

2,251,871
2,043,675

1,910,489 4,162,360
1,733,923 3,777,598

107
97

54.1
54.1

214
214

1920.
January

1,933,385

1,949,798 3,883,183

100

49.8

197

Net ton-miles, revenue and nonrevenue.
[United States Railroad Administration.]
1919.
January
July
August.
September
October




30,355,765,000
34,914,294,000
36,361,653,000
38,860,311,000
40,343,750,000

November
D ecember

1919.

1920.
January

j 32,539,248,000
i 33,462,298,000
I
I 34,769,722,000

MARCH, 1920.

297

FEDERAL RESERVE BULLETIN.

BANK TRANSACTIONS DURING JANUARY-FEBRUARY.

In the tables below are shown debits to individual account for the four weeks ending February 18 of the present year, and for the corresponding weeks in 1919, as reported to the
Board by over 150 of the country's more important clearing houses. A recapitulation, by
Federal Eeserve districts, combines figures for
150 centers, for which uniform reports are
available for each of the eight weeks under
review.
Considerable fluctuations in the weekly total,
both in 1919 and in the present year, are shown,
the high figures in both years applying to the
week covering end-of-January transactions,
while the low figures are shown for the weeks
ending February 12, 1919, and February 18 of
the present year, containing Lincoln's Birthday,
observed as a holiday by most of the clearinghouse centers. On the whole the volume of
bank transactions for the four weeks under
review, while nearly 10 per cent less than for the

preceding four weeks, shows a degree of recession but slightly larger than the corresponding
volume a year ago. For the New York Clearing
House banks, however, undoubtedly as the result of the decided shrinkage during the month
in the volume of stock-exchange dealings, the
decrease in bank transactions as compared with
the total for the immediately preceding four
weeks was about 13 per cent, as compared with
10 per cent the year before.
Aggregate debits to individual account reported for New York City for the four weeks
under review show a 28 per cent increase over
the corresponding 1919 figures, or slightly less
than the rate of increase that is shown by all
the other reporting centers. For the four-week
period immediately preceding the volume of
like debits of New York City banks shows an
increase of about 32 per cent, compared with
an increase of 25 per cent only for other reporting centers.

Debits to individual account at clearing-house banks.
[In thousands of dollars.]

Federal Reserve district.
Jan. 28.
No. 1—Boston:
Bangor
Boston
Fall River
Hartford
Holyoke
Lowell
New Bedford
New Haven
Portland
Providence
Springfield
Waterbury
Worcester
No. 2—New York:
Albany
Binghamton
Buffalo
New York
Passaic
Rochester
Syracuse
No. 3—Philadelphia:
Altoona
Chester
Harris burg
Johnstown
Lancaster
Philadelphia
Reading
Scranton
Trenton.,
Wilkes-Barre...
Williamsport...
Wilmington —
York




1920

1919

Week ending—

Week ending—

Feb. 4.

Feb. 11.

Feb. 18.

Jan. 29.

Feb. 5.

Feb. 12.

Feb. 19.

2,972
306,189
9.519
20,603
4,927
4,994
8,059
20,227
6,867
40,248
16,648
7,601
16,509

3,022
333,020
13,105
28,036
4,889
5,255
7,813
19,529
8,450
42,248
19,458
7,262
19,978

3,035
294,845
8.326
18,335
4,438
4,922
7,948
17,601
6,892
34,325
16,709
6,664
15,483

3,018
300,648
9,472
27,058
4,997
5,713
10,769
16,762
6,934
4i;060
12,647
9,893
17,949

2,131
229,283
6,220
16,227
2,663
5,336
5,714
18,946

3,105
272,062
7,218
19,497
3,168
5,278
6,172
17,011

2,245
220,036
6,166
13,744
2,304
4,240
5,573
11,067

2,730
226,339
5,325
18,181
3,009
4,799
6,591
16,540

29,166
8,451
5,691
12,843

27,942
9,972
6,981
14,736

25,736
8,911
4,606
11,900

28,365
9,456
7,164
13,468

22,781
3,830
62,684
4,616,856
4,948
30,160
13,255

20,627
4,449
76,259
5,427,761
5,562
29,819
15,235

19,516
3,914
61,283
4,918,894
4,663
27,016
15,738

20,095
3,944
58,764
4,075, ISO
5,511
30,197
14,960

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

14,353
3,236
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
12,306

3,370
4,363
5,134
2,810
5,111
343,180
4,475
15.703
10,410
8,187
3,961
10,102
3,509

2,877
4,705
2,330
3,194
5,539
401,683
4,710
12,111
10,720
6,659
3,552
15,661
4,208

2,470
4,110
2,300
3,104
4,651
319,216
4,464
15,460
10,117
7,352
3,285
12,663
3,146

3,101
4,775
2,720
3,626
5,341
331,070
5,711
12,068
11,188
8,722
3,805
9,356
4,094

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

298

MARCH, 1920.

FEDERAL RESERVE BULLETIN-.

Debits to individual account at clearing-house

banks—Continued.

[In^thousands of dollars.]

Federal Reserve district.
Jan. 28.
No. 4—Cleveland:
Akron
Cincinnati
Cleveland
Columbus
Dayton
Erie
Greensburg
Lexington
Oil City
Pittsburg
Springfield
Toledo
Wheeling
Youngstown
No. 5—Richmond:
Baltimore
Charleston
Charlotte
Columbia
Norfolk
Raleigh
Richmond
No. 6—Atlanta:
Atlanta
Augusta
Birmingham
Chattanooga
Jacksonville
Knoxville
Macon
Mobile
Montgomery
Nashville
New Orleans
Pensacola
Savannah
Tampa
Vicksburg
No. 7.—Chicago:
Bay City
Bloomington
Cedar Rapids
Chicago
Davenport
Decatur
Des Moines
Detroit
Dubuque
Flint
Fort Wayne
Grand Rapids
Indianapolis
Jackson
Kalamazoo
Lansing
Milwaukee
Peoria
Rockford
Sioux City
South Bend
Springfield
Waterloo
No. 8.—St. Louis:
Evansville
Little Rock
Louisville
Memphis
St. Louis
No. 9.—Minneapolis:
Aberdeen
Billings
Duluth
Fargo
Grand Forks
Great Falls
Helena
Minneapolis
St. Paul
Sioux Falls
Superior
Winona




1920

1919

Week ending—

Week e n d i n g -

Feb. 4.

Feb. 11.

Feb. 18.

27,471
60,866
152,174 i
34,562
13,135
6,621

18,632
61,402
164,194
27,228
11,753
6,259
4,822
11,708
2,315
181,501
3,012
29,432
9,855
17,659

28,068
66,159
164,560
28,202
12,614
7 118
5,704
11,311
2,571
177,270
3,883
23,052
9,164
13,327

27,991
58,974
148,918
27,678
11,468
6,304
4,029
11,550
1,865
173,188
3,135
23,477
7,223
16,050

99,710
11,648
9,259
9,587
20,114
5,500
27,691

113,103
11,473
8,900
9,657
19,320
5,300
34,644

97,203
10,228
11,223
8,019
16,893

98,784
9,706
11,567
7,656
18,819
4,900

30,489

33,067
12,923
15,393
12,343
16,562
6,659
10,019
9,793
6,236
27,915
83,504
2,197
19,747
6,378
2,190

33,127
11,475
17,352
13,734
14,582
7,109
7,963
10,035
6,150
27 148
98,564
2,579
21,284
7,244
2,102

32,753
10,500
16,100
10,994
13,955
6,754
7,264
9,752
5,843
26,281
88,944
2,915
18,666
6,668
2,116

4,048
2,521
9,691
676,679
6,978
3,664
21,412
127,715
3,088
10,000
6,128
20,521
33,817
4,868
4,312
5,160
55,689
9,540
4,886
15,902
3,119
3,333
2,793

2,865
3,120

4,432
12,063

2,699
184,823
3,526
34,031
9,919
12,273

Jan. 29.

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

Feb. 5.

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

Feb. 12.

Feb. 19.

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

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

30,290

72,921
6,690
6,300
5,824
19,449
5,319
24,196

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

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

74,982
6,378
5,500
6,857
16,498
5,900

33,999
8,756
16,326
13,764
13,651
7,971
8,163
9,089
6,200
26,475
73,298
2,342
14,971
6,663
1,735

23,548
6,446
9,685
7,591
10,563
4,758
4,944
6,413
4,145
18,964
69,239
2,071
12,301
4,594
1,874

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 i
5,682
13,451

23,027
5,707
11,004
9,012
9,903
5,769
4,495
6,527
5,839
18,856
65,198
2,266
11,722
4,707
1,604

9,450
4,234
18,484
150,484
4,000
11,000
6,575
21,443
37,800
4,960
4,759
4,956
69,198
10,740
6,475
15,219
4,187
5,022
3,632

3,366
2,571
8,167
670,098
6,146
3,618
21,621
108,855
3,125
8,000
7,636
20,989
34,539
4,177
4,713
5,147
66,223
8,440
6,171
16,810
4,432
4,753
3,660

3,098
3,377
9,120
679,408
8,368
3,683
19,781
176,308
3,641
7,000
6,710
23,637
40,454
4,864
4,563
5,657
63,682
12,101
5,823
16,936
4,375
4,959
3,484

2,848
2,227
4,440
544,374
5,931
2,884
16,020
93,136
1,800
4,293
4,569
16,602
26,693

2,374
2,340
5,432
623,177
8,454
3,125
18,233
107,015
2,300
5,163
5,154
14,777
24,670

2,440
1,831
5,050
436,154
6,202
2,229
15,205
68,400
1,700
3,900
3,919
14,742
22,635

3,076
2,388
3,495
614,073
8,421
2,917
18,172
130,534
2,051
3,725
4,671
13,890
32,674

3,250
3,476
59,628
11,637
4,822
14,747
3,803
2,662
3,263

2,239
2,904
50,728
10,090
3,595
16,609
2,332
2,792
2,391

3,338
4,307
48,654
12,590
4,979
15,273
3,167
2,918
2,925

5,325
9,865
35,750
45,969
146,440

5,772
9,896
39,432
43,598
163,296

5,582
10,009
32,083
43,747
148,099

6,275
10,262
47,859
49,674
166,879

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

3,829

1,484
2,079
15,976
2,804
1,566
2,864
2,438
80,900
37,687
6,212
1,856
1,337

1,382
2,393
18,372
2,848
1,548
2,611
2,C04
83,534
38,850
5,013
1,610
2,165

2,149
2,601
16,007
2,797
1,488
2,113
1,986
76,348
36,578
6,752
1,741
1,045

1,130 I
1,649 |
29,534
1,763
1,062
2,925
2,352
64,792
34,833

1,257
1,763
25,525
2,537
1,197
3,249
2,016
67,776
38,196

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

14,082
1,541
1,180
3,126
2,281
62,127
36,793

1,300
901

1,422
1,217

2,133
16,502
2,549
1,432

2,675
2,615
81,537
36,032
6,800
1,687
911

2,644
3,125
49,411
10,362
4,033 '
16,765
500
2,851
2,854

9^944 |
5,335 1
4,535 i
6,501 S
3,703 !
17,190 |
62,285 '
1,861
11,737
4,346
1,945

1,811 i
978

22,177

1,284
2,066

1,830
950

299

FEDERAL RESERVE BULLETIN.

MARCH, 1920.

Debits to individual account at clearing house banks—Continued.
[In thousands of dollars.]

Federal Reserve district.
Jan. 28.
No. 10.—Kansas City:
Atchison
Bartlesville
Cheyenne
Colorado Springs
Denver
Joplin
Kansas City, Kans...
Kansas City, Mo
Muskogee
Oklahoma City
Omaha
Pueblo
St. Joseph
Topeka
Tulsa
Wichita
No. 11.—Dallas:
Albuquerque
Austin
Beaumont
Dallas
El Paso
Fort "Worth
Galveston
Houston
San Antonio
Shreveport
Texarkana
Tucson
Waco
No. 12.—San Francisco:
Berkeley
Boise
Fresno
Long Beach
Los Angeles
Oakland
Ogden
Pasadena
Portland
Reno
Sacramento
Salt Lake City
San Diego
San Francisco
San Jose
Seattle.
Spokane..
Stockton.
Tacoma..
Yakima..

1920

1919

Week ending-

Week ending—

Feb. 4.

Feb. 11.

Feb. 18.

563
3,010
1,641
3,155
44,879
3,467
3,915
94,162
5,567
17,762
60,831
4,819
21,265
5,067
25,706
11,818

575
4,255
2,117
3,245
60,228
3,542
4,128
94,222
6,332
19,678
55,488
3,819
19,819
5,909
27,059
14,347

639
3,355
2,413
3,517
60,408
4,264
3,936
86,129
5,877
18,509
57,927
3,732
13,025
5,969
26,106
11,975

673
3,550
1,946
2,946
43,635
4,691
4,249
89,261
6,074
19,099
55,914
4,658
17,517
5,624
30,408
12,379

1,892
3,409
4,480

1,904
4,086
5,852

44,220
9,119
23,356
8,002
37,603
8,290
8,294
1,664
1,432
3,866

2,070
4,182
4,330
45,517
10,036
22,943
10,864
38,225
9,014
10,489
2,363
1,575
6,155

1,796
3,714
4,979
46,929
9,041
22,751
6,704
38,872
8,388
8,859
2,912
1,344
5,640

3,743
3,830
8,799
5,426
92,346
19,944
3,972
5,253
37,503
2,605
12,001
17,383
6,893
193,137
4,981
45,937
12,259
5,404
9,948
2,436

2,935
3,534
9,494
6,132
102,845
19,861
3,183
5,725
45,510
3,085
15,884
18,452
8,364
218,282
5,584
50,571
13,083
5,708
9,711
3,270

40,673
8,064
19,010
8,394

9,062
8,605
2,139
1,514
4,980
2,392
3,619
7,556
4,664
96,180
20,799
3,919
4,724
41,091
2,890
10,993
13,243
7,741
182,952
5,651
44,944
11,659
4,860
10,323
Si 082

Jan. 29.

2,865
3,279
17,136
6,132
97,207
19,419
4,061
5,248
45,526
2,001
14,217
20,176
7,812
189,384
5,881
43,630
12,978

Feb. 12.

Feb. 19.

1,733

2,585

2,066

2,351

1,809
27,515
2,767
3,065
78,456

2,210
31,785
3,243
3,120
85,428

2,111
26,138

2,604
12,895
59,454
3,199
22,059
3,718
18,790
7,866

3,133
12,939
64,564
4,505
21,226
5,631
17,421
9,822

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

1,191
3,542
3,685
28,901
5,919
17,281
6,303
24,271

1,686
3,841
4,582
29,749
6,659
19,146
6,288
25,091

1,313
2,703
3,769

1,331
4,470
4,691

24,340
5,649
16,336
5,667
18,679

36,988
7,121
17,300
5,421
27,918

5,222
997
1,678
3,063

3,694
1,681
1,933
3,055

3,828
1,259
1,867
2,485

4,789
1,844
1,579
3,823

2,365
5,156
2,322
54,512
10,614
3,690
2,744
36,571
' 1,508
11,366

2,472
5,845
2,652
62,125
13,133
3,298
2,767
36,018
1,695
15,336
14,633 I
5,768
171,171

2,018
5,170
2,083
46,217
11,749
3,570
2,097

11,673
4,156
115,922

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

27,368
6,625
3,174
8,107
1,570

42,199
8,854
4,940
10,342
2,008

13,343

4,654
128,852
42,249
7,238
4,139
9,432
1,523

6,683
11,360
2,973

Feb. 5.

43,949
8,804
3,500
9,214
1,908

26,622
1,345
9,288

3,249
84,119
3,074
12,791
63,486
4,121
16,729
5,195
7,055

Recapitulation by Federal Reserve districts.
[In thousands of dollars.]

Federal Reserve District.

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




Total

1930
Week e n d i n g -

Number
of centers
included.

150

Jan. 28.

Feb. 4.

Feb. 11.

458,496
4,754,514
420,315
549,772
183,509
264,926
1,030,996
243,349
151,902
305,423
147,337
485,076

503,615
5,579,712
477,949
553,003
202,397
280,448
1,141,720
261,994
150,991
322,071
158,749
542,694

8,995,615

10,175,343

1919
Week endingFeb. 18.

Jan. 29.

Feb. 5.

Feb. 12.

432,631
459,986
5,051,024
4,208,651
392,338
405,577
521,850
558,595
179,855
181,722
259,505
243,403
1,019,080
1,106,165
*239,520
280,949
157,917
144,853
304,729 !I 300,005
138,253
153,541
475,239
509,222

342,671
3,850,385
329,800
473,125
140,699
187,136
818,362
212,194
142,241
245,930
102.053
342,278

393,142
4,428,931
374,057
474,065
155,062
202,849
929,502
235,397
146,155
267,612
107,405
404,288

316,528
2,991,401
274,920
419,021
137,508
183,558
678,087
200,701
100,857
229,162
87,895
288,754

341,967
4,004,836
373,329
439,127
138,292
185,635
938,208
214,964
127,260
251,530
117,275
409,523

9,171,941 ! 8,552,669

7,186,874

8,118,465

5,908,392

7,541,946

Feb. 19.

300

FEDERAL RESERVE BULLETIN.

GOLD SETTLEMENT FUND.

Substantial increases in the number of
banks on the par list, accompanied by a continued increase in the use of the facilities of
the Federal Reserve Banks in effecting telegraphic transfers of funds between Federal
Reserve districts for the account of member
banks, together with the heavy movement of
funds between the interior and New York in
connection with loans in the stock market, are
largely responsible for the further increase in
the volume of clearings effected through the
gold settlement fund during the 3-month
period ending February 19, 1920. Total clearings aggregated $20,586,346,000, marking an increase of 7 per cent over the previous record
total of $19,230,644,000 reported for the 3
months ending November 20, 1919.
In addition to the amounts cleared through
the fund, the Board effected transfers of funds
between the Federal Reserve Banks, mainly
in connection with rediscount transactions
and for Government account, aggregating
$1,616,126,000, compared with $1,754,351,000
during the 3 preceding months. The decrease in the amount of Government expenditures during recent months and consequently
the lessening demand upon the facilities of the
Federal Reserve Banks for the purpose of
shifting funds from the interior to New York
account for the slight falling off in the aggregate amount of transfers effected. Transfers
were heaviest during the. week following
December 15, when the June 3 and July 1,
1919, issues of tax certificates matured and
the final installment of 1919 income and
excess profits taxes were payable.
Operations of the New York bank through
the fund resulted in a net loss through settlements of $431,575,638 and a net gain through
transfers of $348,393,683, thus indicating a
net movement of funds away from New York
amounting to $83,181,955. The continued
movement of funds to the San Francisco bank,
as evidenced by net gains through settlements
and transfers of $47,708,000, $115,173,000, and
$78,158,774, respectively, reported for the
3-month period ending August 22 and November 20, 1919, and February 19, 1920, is due




MARCH, 1920.

in part to the heav}^ demands for gold for
shipment to Japan, China, Hongkong, and
other Far Eastern countries. Substantial increases in ownership of gold (net gains through
settlements and transfers) are also shown for
the Cleveland and Philadelphia banks, while
Chicago and Richmond report a considerable
movement of funds to other districts.
During the period under review the banks
deposited $99,145,045 net of gold in the fund
and transferred $161,309,500 to the Federal
Reserve agents.
This resulted in a decrease
in the banks7 balances in the fund from
$449,782,413 on November 20 to $387,617,958
on February 19, 1920. The agents' fund was
credited with the amounts transferred from the
banks ($161,309,500) and charged with net
withdrawals aggregating $200,000,000. On
February 19, 1920, the aggregate balances in
the two funds stood at $1,182,379,818, or
$100,854,955 less than on November 20, 1919.
Below are given figures showing operations
of the two funds for the period from November
21, 1919, to February 19, 1920, inclusive:
Amounts of clearings and transfers through the gold settlement fund by Federal Reserve Banks, from Nov. 21, 1919,
to Feb. 19, 1920, both inclusive.
Settlements of—
Nov.21-26
Nov. 27-Dec. 4
Dec. 5-11
Dec. 12-18
Dec. 19-24
Dec. 26-31
Jan. 2-8
Jan. 9-15
Jan. 16-22
Jan. 23-29
Jan. 30-Feb. 5
Feb. 6-11
Feb. 13-19
Total
Total
Total
Total
Total

.

since Jan. 1,1920....
for 1919
for 1918
for 1917

Total clearings.

Transfers.

$1,409,957,138.02
1,783,514,418.53
1,478,042,381.83
1,704,301,576.55
1,452,209,366.51
1,481,085,333.03
1,859,179,029.79
1,602,250,242.28
1,735,829,277.49
1,610,741,529.52
1,546,781,824.92
1,156,246,402.96
1,766,207,752.74

$48,753,980.11
94,022,608.38
75,347,604.25
51,116,717.83
244,638,898.94
135,760,964.44
175,869,107.22
201,745,851.94
149,680,968.67
86,756,326.83
147,774,240.45
76,515,894.54
128,143,008.21

20,586,346,274.17
11,277,236,059.70
66', 053,394,214.47
45,439,487,000.00
24,319,200,000.00

1,616,126,171.81
966,485,397.86
7,930,857,773.95
4,812,105,000.00
2,835,504,000.00

Clearings and Transfers.
Total
Total
Total
Total
Total
Total

for
for
for
for
for
for

1920 to date
1919
1918
1917
1916
1915

$12,243,721,457.56
73,984,251,988.42
50,251,592,000.00
27,154,704,000.00
5,533,966,000.00
1,052,649,000.00

Total clearings and transfers from May 20,1915,
to Feb. 19, 1920
170,220,884,445.8ft

M A R C H , 1920.

301

FEDERAL RESERVE BULLETIN.
Changes in ownership of gold.
Total to Nov. 20, 1919.

Federal Reserve
Bank.
Decrease.

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

Increase.

Total changes from May 20,
1915, to Feb. 19, 1920.

From Nov. 21, 1919, to Feb. 19, 1920, inclusive.

Balance to
credit Nov.
20, plus net
deposits of
gold since
that date.

Balance
Feb. 19, 1920.

Decrease.

~r

Increase.

$14,160,000.00 $31,817,714.57 $39,394, 274.39
j
123,172,592.42 39,990; 637.24 $83,181,955.18
;«737,738,000.00
5,890,000.00 i 10,362,287.00 30,090. 504.07
|
98,555,000.00 j 7,224,042.37 36,724; 758.93
!
16,391,279.18
48,957,000.00 I 46,957,023.84 30,565: 744.66
57,481,000.00 ! 12,820,604.93 20,772!,407.49
40,784,626.26
102,889,000.00 1116,001,247.13 75,216, 620.87
4,012,641.88
82,404,000.00 I 16,253,459.89 12,240. 818.01
1,307,207.08
8,357,000.00 j 19,167,230.12 17,860, 023.C4
5,930,418.49
I 44;404,000.00 | 43;914',236.42 37,983, 817.93
! 38,530,000.00 j 5,964,646.42 14,656, 704.08
1236, 111, 000.00 1*46,037,127.01 32,121,647.39 |

Decrease.

$7,576,559.82

$21,736,559.82
$820,919,955.18

19,728,217.07
29,500,716.56

25,618,217.07
128,055,716.56
32,565,720.82
65,432,802.56
62,104,373.74
78,391,358.12
7,049,792.92
38,473,581.51
47,222,057.66
314,269,774.40

7,951,802.56

8,692,057.66 I
78,158,774.40 j

i 737,738,000.00 J737,738,OO0.O0 1387,617,958.10 387,617,958.10 ! 151,608,128.07 151,608,128.07

Total

Increase.

820,919,955.18 j 820,919,955.18

i Excess of withdrawals over balance Nov. 20,1919, and deposits since that date.

Combined statement from Nov. 21, 1919, to Feb. 19, 1920, inclusive.
GOLD SETTLEMENT

Federal Reserve
Bank of—

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

.

Balance last
statement,
Nov. 20,1919.

$32,877,714. 57
118,304,592.42
30,025,787.00
25,731,519.87
33,671,208.84
16,631,827. 43
64,167,247.13
16,403,294.89
17,397,230.12
42,570,826.42
20, 773, 791.42
31,227,372.99
449, 782,413.10

Total

Gold
withdrawals.

$60,000.00
85,132,000.00

" 1 "666," 666.66
2,543,185.00
298,900.00
260,000.00
7, 749,835. 00
200,000.00
120,000. 00
7,912, 775. 00
92,255,000.00
200,531,695.00

Gold
deposits.

FUND.

Aggregate
Aggregate
withdrawals
deposits and
and transfers
transfers from
to agent's fund. agent's fund.

Transfers.
Debits.

$21,000,000.00
125,000,000.00
14,336,500.00
5,492,522.50
25,829,000.00
20,487,677.50
37,094,000.00
23,600,000.00
3,470,000.00
1,463,410.00
1,103,630. 00
20,800,000.00

$22,060,000.00
140,132,000.00
39,000,000.00
24,000,000.00
12,543,185.00
32,298,900.00
40,260,000.00
64, 749,835.00
2,200,000.00
120,000.00
15,912, 775.00
170,255,000.00

$21,000,000.00
145,000,000.00
19,336,500.00
5,492,522. 50
25,829,000.00
28,487,677. 50
92,094,000.00
64,600,000.00
3,970,000.00
1,463,410.00
1,103,630.00
92,990,500.00

$136,643,206.28
164,957,676.07
274,579,612.86
126,729,354.26
73,770,752.54
83,539,169. 62
318,138,940. 94
54,894,410.04
21,371,860.55
97,062,484.33
178,632,282. 39
85,806,421.93

$90,390,730.11
513,351,358.98
324,426,274.13
41,884,074.15
63,911,213.85
41,702,950. 56
240,373,307.67
27,712,787. 89
19,717,544. 51
64,949,000.36
140,699,589.23
47,007,340.37

299,676,740.00

563,531,695.00

501,367,240.00

1,616,126,171. 81

1,616,126,171.81

Settlements from Nov. 21,1919, to Feb. 19,1920, both inclusive.
Federal Reserve Bank of—

I
Net debits.

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




Total

Credits.

Total debits.

$431,575,638.09
j
30,118,444.20
6,531,740.49
I
I
|

468, 225,822. 78

Total credits.

Net credits.

Balance in
fund a t close
of business,
Feb. 19,1920.

$1,630, 628, 780. 70
5,823, 871,433.54
1,915, 708,071. 66
1,510, 483,554. 55
1,948, 220,536. 71
651, 341,938. 26
2,608, 150,917.16
1, 593, 407,459. 99
443, 223,834.43
1,127, 440,294.48
729, 194,953. 78
604, 674,498. 91

$1,684, 457,816.69
5,392, 295, 795.45
1,885, 589,627.46
1,624, 829,551. 22
1,941, 688,796.22
701, 129,959.8S
2,645, 131,924.17
1,616, 576,440.26
443, 570,943. 39
1,153, 623,359. 96
775, 819, 704.60
721, 632,354. 87

$53,829,035.99

49,788, 021.62
36,981, 007.01
23,168, 980. 27
347, 108. 96
26,183, 065.48
46,624, 750.82
116,957, 855. 96

$39,394,274. 39
39,990,637.24
30,090,504.07
36,724,758. 93
30,565,744.66
20,772,407.49
75,216,620.87
12,240,818.01
17,860,023.04
37,983,817.93
14,656,704.08
32,121,647. 39

20,586,346,274.17

20,586,346,274.17

468,225,822. 7

387,617,958.10

114,345,996. 67

302

FEDERAL RESERVE BULLETIN.
Combined statement from Nov. 21,1919,

MARCH, 1920.

to Feb. 19, 1920, both

inclusive.

FEDERAL RESERVE AGENTS' FUND.

Balance last

Gold
withdrawals.

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

$52,000,000
85,000,000
65,389,260
70,000,000
48,000,000
48,000,000
245,144,500
63,930,600
19,800,000
36,860,000
11,484,000
87,844,000

$34,000,000
15,000,000
40,000,000
10,000,000
25,000,000
22,000,000
76,000,000
28,000,000
2,000,000
18,000,000
9,000,000
17,500,000

Total...

833,452,360

296,500,000

Federal Reserve agent at—




Gold

Withdrawals
for transfers
to bank.

$20,000,000

Deposits
through
transfers
from bank.

Total
deposits.

$34,000,000
35,000,000
45,000,000
10,000,000
25,000,000
30,000,000
131,000,000
69,000,000
2,500,000
18,000,000

$42,000,000
55,000,000
47,500,000
20,000,000
10,000,000
32,000,000
86,000,000
57,000,000
2,000,000
15,000,000
15,000,000
78,000,000

$60,000,000
105,000,000
67,889,260
80,000,000
33,000,000
50,000,000
200,144,500
51,930,600
19,300,000
33,860,000
17,484,000
76,153,500

459,500,000 i

794,761,860

8,000,000
55,000,000
41,000,000
500,000

$22,000,000
55,000,000
39,000,000
20,000,000
10,000,000
32,000,000
40,000,000
57,000,000
2,000,000

72,190,500

8,000,000
78,000,000

89,690,500

96,500,000 I 201,690,500

363,000,000

498,190,500

8,500,000

46,000,000

15,000,000
7,000,000

$20,000,000
5,000,000

Balance at
close of
business
Feb. 19,1920.

Total
withdrawals.

9,000,000

MARCH,

1920.

FEDERAL RESERVE BULLETIN".

303

DISCOUNT AND OPEN MARKET OPERATIONS OF THE FEDERAL RESERVE BANKS
DURING JANUARY, 1920.

Discount operations of the Federal Reserve
Banks during the first month of the present
year totaled $6,241,271,489, compared with
$7,290,872,591 in December, 1919, and $5,994,382,265 in January of the past year. These
totals are exclusive of amounts of bills discounted for other Federal Reserve Banks,
which totaled 270 millions in the month under
review, 117 millions in December, 1919, and
about 105 millions in January, 1919.
Reduction in the volume of outstanding
Treasury certificates, followed by a decrease in
the total volume of war paper discounted, also
the prevalence during the month of uniform
rates, irrespective of maturity, on paper secured by Liberty bonds and Victory notes, as
well as on ordinary commercial paper, largely
account for the considerable shrinkage in total
discounts shown, as may be seen from a comparison of the volumes of war paper and 15-day
paper discounted by the Federal Reserve Banks
during January and the months immediately
preceding. War paper discounted during January totaled 5,456.3 millions, compared with
6,202.2 millions in December and 6,761.8 millions in November, 1919, while the volume of
15-day paper discounted in January was 5,609.3
millions, as against 6,746.3 millions in December
and 6,860.8 millions in November of the past
year.
Discount operations were on a substantially
smaller scale than the month before at all the
banks, except at Atlanta, where the decrease
was nominal, and at St. Louis and Dallas,
where January operations show considerable
increases over the figures of the previous
month.
War paper constituted 87.4 per cent of the
total paper discounted during the month, as
against 85 per cent for December and about
90 per cent for January, 1919. At the New
York bank the share of war paper in the total
discount operations for the month was nearly
90 per cent, as against 87 per cent the month
before. Discounts of trade acceptances totaled $16,611,090, compared with $23,560,893
for December and $10,904,212 for January of
last year. Of the most recent monthly total all
but $346,446 represented bills based upon
domestic trade transactions. Discounts of
bankers' acceptances declined from $62,145,690
in December, 1919, to $17,223,362 during the
month under review. Discounts of ordinary




commercial paper show a reduction to $736,600,589 from $982,387,419 in December, 1919.
About 90 per cent of the month's discounts,
as against 92 per cent in December, 1919, was
made up of 15-day paper, i. e., bills maturing
within 15 days from date of discount or rediscount with the Federal Reserve Banks. On the
other hand, the share of 90-day paper shows an
increase for the same period from 3.7 to 5.8
per cent. Six-month paper, composed of agricultural and live-stock paper, totaled $11,333,378, compared with $12,380,465 the month before. As a result, the average maturity of all the
paper discounted during the month works out
at 13.21 days, compared with 11.52 days for
December and 10.34 days for January of the
past year. For the New York bank the average maturity of the paper discounted works out
at 9.63 days, compared with 7.40 days for December and 7.20 days for January, 1919.
About 81 per cent of the January discounts
took the 4f per cent rate and over 11 per cent
the 5-| per cent rate, while the average rate
of discount charged by all Federal Reserve
Banks works out at 4.90 per cent, as compared
with 4.67 per cent the month before and 4.18
per cent for January of last year. For the New
York bank the average calculated rate of discount charged during the month was 4.86 per
cent, compared with 4.63 per cent for December and 4.07 per cent for January, 1919.
Holdings of discounted paper on the last Friday of the month totaled $2,174,357,000, compared with $2,194,878,000 held on the last Friday in December and $1,601,128,000 at the end
of January last year. About 67 per cent of the
paper held about the end of the month under
review was made up of war paper, compared
with about 69 per cent about the close of December and 85 per cent about the close of January of last year. Discounted trade acceptances held on the last Friday in January totaled $24,886,000, compared with $33,697,000
held on the last Friday in December, the decrease shown following the abolition by all the
Federal Reserve Banks of differential rates in
favor of trade acceptances as against one-name
paper. Holdings of agricultural paper totaled
$23,212,000, compared with $24,825,000 about
the end of December, 1919, and $30,291,000 on
the corresponding date the year before, while
holdings of live-stock paper totaled $33,693,000, compared with $26,243,000 a month and

304

FEDERAL RESERVE BULLETIN.

$28,710,000 about a year previous. Of the
total agricultural paper held, about 75 per cent
constituted the combined shares of the Chicago
and Kansas City banks, while live-stock paper
holdings are practically limited to the Minneapolis, Kansas City, Dallas, and San Francisco
banks.
During the month under review the membership of the system increased from 9,069 to
9,112 institutions, while the number of member
banks accommodated through discount of
paper decreased from 3,659 in December, 1919,
to 3,461 in January. In the following exhibit
is presented the number of member banks in
each Federal Reserve district at the end of
December, 1919, and January, also the number
of member banks in each district accommodated during each of these two months.

Federal reserve bank.

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

Number of member banks in district.

Number of member banks accommodated.

Jan. 31.

Dec. 31.

Jan. 31.

431
757
682
845
586
429
1,377
542
928
1,042
762
731

432
753
678
843
584
427
1,375
536
921
1,039
758
723

307
375
393
238
264
159
530
204
228
297
210
256

277
434
405
276
255
173
586
205
270
365
200
213

9,112

9,069

3,461

3,659

Dec. 31.

Bills purchased in open market during
January totaled $302,452,384, compared with
$400,708,093 purchased in December, 1919,
and $201,491,706 in January of last year.
Of the total bills purchased during the month
under review $296,964,682 were bankers'
acceptances, and of these about 81 per cent
were based upon foreign trade transactions.
Purchases of trade acceptances during the
month reported by three banks totaled
$2,706,602, compared with $5,080,924 for




MARCH, 1920.

December and $3,031,723 for January of
1919. About 90 per cent of the January
total was drawn in the foreign trade.
About 37 per cent of the paper bought
in open market was7 composed of paper of
more than 60 days maturity at the time
of purchase by the Federal Reserve Banks,
the average maturity of all the paper bought
during January being 47.05 days, compared
with 57.11 days for December and 55.51 days
for January of last year. About 29 per cent
of the bills were purchased at the 4f per cent
rate, over 23 per cent took the 5 per cent
rate, and about 21 per cent the 5i per cent
rate. The average rate of discount at which
the bills were purchased works out at 5.10
per cent, compared with 4.84 per cent for
December and 4.28 per cent for January of
the past year. Average maturities of the
paper purchased by the New York and Boston
banks are considerably shorter, viz, 34.07
and 36.18 days, while the average rates of discount charged work out at 5.11 and 5.23
per cent.
On the last of January the Federal Reserve
Banks held a total of $562,010,000 of purchased bills, compared with $574,103,000
held at the close of December and $281,293,000
at the close of January, 1919. Of the most
recent total all but $6,448,000 were bankers'
acceptances, of which $383,549,000, or nearly
70 per cent, were bills accepted by member
institutions, $74,620,000, or 13.3 per cent,
bills accepted by nonmember State banks
and trust companies, $60,999,000 bills
accepted by private banks, and $36,394,000
bills accepted by foreign banks and their
agencies. Of the $6,448,000 of purchased
trade acceptances held at the close of the
month $4,558,000 were bills drawn in the
foreign trade and $1,890,000 bills drawn in
the domestic trade. The former are larger
bills drawn by exporters in the Far East or
American import houses and are reported
largely by the New York and San Francisco
banks.

MABCH,

305

FEDERAL RESERVE BULLETIN.

1920.

Total discount and open-market operations of each Federal Reserve Bank during the months of January, 1920 and 1919.

Federal Reserve Bank.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total, January, 1920..
Total, January, 1919
1

...

Bills dis! Bills bought
counted for j in open j
member banks.
market, j

I.
United States
certificates
of indebtedness.

United
States
bonds.

Total.

Total
United
States
securities.

Jan., 1920.

Jan., 1919.
$403,009,318
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

$363,305,053 $18,686,390
153,066,373 i $200,100
3,454,051,259
3,723,290
647,658,480 |
243,778,877 ' 28,926,235
4,356,500
304,887,359
6,636,248
150,421,233
24,486,006
408,576,637
4,820,000
195,389,925
450,000
61,182,911 j
100,000 ;
118,779,298 I
417,085 i
83,529,010 j
56,784,257 !
209,711,447

$23,792,500
156,216,500
5,238,500
85,077,000
14,000,000
889,000
306,624,500
3,390,000
13,080,500
29,534,000
1,000
4,532,000

$23,792,500
156,416,600
5,238,500
85,077,000
14,000,000
889,000
306,624,500
3,390,000
13,080,500
29,534,000
1,000
4,532,000

$405,783,943
3,763,534,232
656,620,270
357,782,112
323,243,859
157,946,481
739,687,143
203,599,925
74,713,411
148,413,298
83,947,095
271,027,704

200,100
6,241,271,489 ! 302,452,384 |
| 5,994,382,265 ! 201,491,706 ! 1,014,175
}_
i_

642,375,500
828,447,000

642,575,600
829,461,175

7,186,299,473
2 7,025,336,146

!
2 Includes $1,000 of municipal warrants.

4 per cent Liberty bonds.

Average amount of earning assets held by each Federal Reserve Bank during January, 1920, earnings from each class of
earning assets, and annual rate of earnings on basis of January, 1920, returns.
Average daily holdings of the several classes of earning assets.
Federal Reserve Bank.

Purchased
bills.

Discounted
bills.

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

$158,891,007
769,898,611
200,181,794
143,939,161
102,045,194
95,344,068
282,589,931
87,465,641
67,067,032
90,496,099
57,878,279
86,990,783

Total, January, 1920.
Total, January, 1919.

I

2,142,787,600 !
1,768,745,862 j

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




Total, January, 1920
Total, January, 1919

|
I
j
|

Discounted
bills.

Purchased
bills.

$604,537
3,006,175
802,787
582,963
409,945
383,522
1,139,770
352,033 j
278,564 |
399,736 !
241,070 |
353,298 i

$131,804
818,300
26,541
264,313
47,422
45,498
340,938
73,657
35,318
52,650
23,329
476,039

$23, 249,122
74, 703,590
32, 430,013
27, 722,263
14, 204,278
16, 099,253
56, 588,052
18, 546,126
9, 147,065
25, 336,753
12, 611,516
14, 862,256

$214,310,033
1,045,868,153
239,284,358
235,829,910
128,031,328
122,905,020
424,237,716
124,614,260
85,135,258
129,042,440
76,328,774
218,327,429

575,626,792 I
378,035,734

325,500,287
126,788,514

3,043,914,679
2,273,570,110

8,554,400
| 6,206,988

2,335,809
1,355,558

Calculated annual rate of earnings from—

United
States
securities.

148,
58,
49,
24,
27,
100,
32,
1."
5:
23'
28,

Total.

$32,169,904 ;
201,265,952 i
6,672,551 1
64,168,486 :
11,781,856 !
11,461,699 !
85,059,733 !
18,602,493 i
8,921,161 I
13,209,588 !
5,838,979 !
116,474,390 j

Earnings from—
Federal Reserve Bank.

United States
securities.

Total.

664
$776,
355 3,972,
405
887,
191
896,
184 j
431,
562 I
456,
720 i 1,581,
862 ! 458,
634 ;
329,
086 i
505,
268 :
2S7,
518 I
857

601,479 11,491.688
259,049 ' 7,821', 595

Discounted
bills.

Purchased
bills.

United
States
securities.

Total.

Per cent. Per cent. Per cent. Per cent.
4.84
4.52
2.01
4.30
4.80
4.65
2.34
4.49
4.68
2.12
4.36
4.72
4.85
2.09
4.48
4.77
4.74
2.01
4.43
4.73
4.69
2.02
4.39
4.75
4.73
2.10
4.40
4.76
4.66
2.09
4.33
4.74
4.67
2.02
4.57
4.90
4.71
2.47
4.62
5.22
4.64
2.17
4.43
4.90
4.83
2.27
4.64
4.80
4.71
4.27

4.79
4.36

2.18
2.49

4.46
4.06

306

FEDERAL RESERVE BULLETIN.

MARCH,

1920.

Bills discounted during the month of January, 1920, distributed by classes; aiso 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.

Member banks' collateral
notes.
Customers'
paper
secured byGovernment Secured by
war obliga- i Government Otherwise
tions.
| war obligasecured.
tions.

Trade acceptances.

!
$29,701,927
$314,253,000
85,903,335 2,980,142,704
60,973,765
533,770,593
6,869,675
203,644,390
6,587,903
282,797,790
1,825,306
126,212,660
5,198,766
300,363,250
7,948,918
139,558,543
2,478,487
42,596,200
2,068,226
82,285,120
97,750
76,852,869
1,565,124
162,606,300

$583,254 $1,553,669 $17,146,790 $363,305,053 |
6,337,199 10,698,752 370,969,269 3,454,051,259 !
52,554,864
286,258
647,658,480 |
31,358,011
243,778,877 !
1,756,801
12,569,312
304,887,359 !
557,354
20,747,525
150,421,233 i
754,975
99,251,673
408,576,637 |
1,265,682
45,959,901
195,389,925 !
1,601,563
15,346,046
61,182,911 ;
165,141
24,447,637
118,779,298 I
391,794
5,961,149
157,242
83,529,010 |
12,753,827
1,965,908 40,288,412
209,711,447 I

Total, January, 1920... 211,219,182 I 5,245,083,419
Total, January, 1919... 192,231,173 i 5,521,671,646
1

$66,413
73,000
150,000
2,375,000
610,000
84,000
597,037
9,586,521
460,000
531,876

Bankers'
acceptances.

All other
discounts.

14,533,847 16,611,090 17,223,362 736,600,589
17,474,004 10,904,212 1,577,514 250,523,716

Total.

6,241,271,489 I
5,994,382,265

Average Average
rate
maturity (365-day
in days.

12.59
9.63
14.87
17.20
10.93
20.80
25.14
19.44
27.82
28.02
18.29
17.57

Per cent.
4.89
4.86
4.83
4.92
4.96
4.92
4.86
4.88
5.05
5.52
4.78
4.81

13.21
10.34

4.90
4.18

Includes $346,446 in the foreign trade.

Bankers' and trade acceptances in the foreign and domestic trade and dollar exchange purchased during the month of January,
• also average rates and maturities of total bills purchased by each Federal Reserve Bank.
Bankers' acceptances.
Federal Reserve Bank.

In the i
domestic |
trade. I

In the
foreign
trade.

Total.

$4,801,721 $13,884,669 $18,686,390
Boston
22,570,541 127,457,729 150,028,270
New York...
1,210,813 j 2,312,477
3,523,290
Philadelphia
5,333,421 ! 23,143,934 28,477,355
Cleveland—
4,356,500
1,745,500 ! 2,611,000
Richmond
6,636,248
Atlanta
I 4;220',580 ! 2,415,668
5,556,293
"""* ~"" \ 18,379,713 23,936,006
Chicago.
1,120,000 | 3,700,000
4,820,000
St. Louis
450,000
450,000
Minneapolis
100,000 !
100,000
Kansas City
114,052 ;
303,033
417,085
Dallas
9,382,790
j
46,150,748
55,533,538
San Francisco
Total, Jan., 1920.... 56,605,711 | 240,358,971 296,964,682
Total, Jan., 1919.... 96,180,827 I 100,580,386 196,761,213




Trade acceptances.
In the
domestic
trade.

In the
foreign
trade.

Total.

Average
Dollar
Total bills Average
rate
(365-day
exchange. purchased. maturity
in days. basis).

417,085
56,784,257

36.18
34.07
64.60
61.51
63.31
58.61
69.65
58.48
54.77
75.96
47.24
63.71

Per cent.
5.23
5.11
4.93
5.13
5.00
5.00
5.11
5.06
4.89
5.07
5.09
5.08

2,706,602 2,781,100 i 302,452,384
3,031,723 1,698,770 | 201,491,706

47.05
55.51

5.10
4.28

i $18,686,390
153,066,373
3,723,290
28,926,235
4,356,500
6,636,248
550,000 24,486,006
4,820,000
450,000

$251,590 $1,280,413 $1,532,003 $1,506,100
200,000
350,000
50,731
48,149

ioo;ooo

1,075,719
302,321 2,404,281
1,096,578 1,935,145

1,075,719

175,000

307

FEDERAL RESERVE BULLETIN.

MARCH, 1920.

Discounted bills, including member banks' collateral notes, held by each Federal Reserve Bank on the last Friday in
January, 1920, distributed by classes.
[In thousands of dollars.]
Member banks' collateral notes.
Customers'
paper
Agrisecured
by
cultural ! Live-stock Govern- Secured by
paper.
Govern- Otherwise
ment war
obligations. ment war
secured.
obligations.

Federal Reserve Bank.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total, January, 1920
Total, January, 1919
Per cent, January, 1920
Per cent, January, 1919

4
79
7
85
""'243*
7,940
16,052
3,650
5,633

63,065
122,207
81,336
10,811
11,605
3,583
7,641
6,967
4,279
3,589
193
2,412

49,868
473,288
77,936
86,129
64,700
60,166
146,001
41,333
19,604
29,217
45,283
46,679

28,710
1.6
1.8

317,688
266,758
14.6
16.7

1,140,204
1,090,813
52,4
68.1

287
173

111
362
608
11,603
52
1,563
5,826
987
1,594

,

23,212
30,291
1.0
1.9

Trade
acceptances.

All
other
discounts.

4,806
10,988
50

40,768
148,143
34,873
43,453
20,354
32,611
147,953
39,992
31,230
28,553
12,082
28,271

161,018
762,127
195,140
143,495
99,760
98,433
314,914

608,283
157,100
28.0

2,174,357
1,601,128
100.0
100.0

2,465
7,214
768
2,762
1,962
984
1,712
2,354
145
542

150
770
125
4
438
355
4,163
316
106
6,427
13,532

Bankers'
acceptances.

271
1,9

5

3,978

"i*86i"

24,886
13,924
1.2
.9

19,964
.9

Acceptances purchased by each Federal Reserve Bank, and held on Jan. 31,1920, distributed by classes of accepting

Total.

65,116
87,947
62,511
90,534

institutions.

[In thousands of dollars.]
Trade acceptances.

Bank acceptances.
Federal Reserve Bank.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total:
Jan.31,1920
Dec. 31, 1919
Nov. 30,1919
Jan. 31, 1919
Jan. 31, 1918




Non| Member member
trust
| banks.
companies.
! 38,997
| 106,518
7,171
49,526
10,853
10,449
66,833
!
10,184
5,591
6,105
1,037
70, 111
!

383,375
405,339
347,852
224,237
240.259

561
2,907

650
1,000

I

Nonmember
State
banks.

Private
banks.

Foreign
bank
branches
and
agencies.

3,406
37,894
323

6,909
25,717
306
8,687

1,106
13,159
107
6,179

2,501
419

365

108
258
100
214

672

16,597

6,134
5,121
6,446
2,178
5,547

68,592
60,213
48,798
11,986
3,522

995
'15*684'

61,218
55,537
55,876
22,163
22,099

588

"14,699
36,103
40,159
36,358
15,119
6,947

Grand
total.
Total.

Domestic. Foreign.

27 I

3,256
20
48

57
5,020
20
75 i

45

1,271

1,316 |

1,893
2,540
1,646
1,871

4,595
5,194
4,934
3,739

6,488
7,734
6,580
5,610

50,979
186,195
7,907
74,420
10,853
11,099
70,807
10,861
5,691
7,910 I
1,037
117,763

57
1,764 j

555,522
495,330
275,683
278,374

Total.

51,036
191,215
7,927
74,495
10,853
11,099
70,807
10,861
5,691
7,910
1,037
119,079
562,010
574,103
501,910
281,293
284,737

308

MABCII, 1920.

FEDEKAL EESEEVE BULLETIN.

OPERATION OF THE FEDERAL RESERVE CLEARING SYSTEM, JAN. 16 TO FEB. 14, 1920.
[Amounts in thousands of dollars.]
Items drawn on banks in own district.

Federal Reserve Bank or
branch.

Boston
New York
Buffalo
Philadelphia
Cleveland
Cincinnati
Pittsburgh
Richmond
Baltimore
Atlanta
Birmingham
Jacksonville
Nashville
New Orleans
Chicago
Detroit
St. Louis
Little Rock
Louisville
Memphis
Minneapolis
Kansas City
Denver
Omaha
Dallas
El Paso
Houston
San Francisco
Los Angeles
Portland
Salt Lake City
Seattle
Spokane




Total:Jan.l6-Feb.l4,1920
Dec.l6,1919-Jan.l5,1920

Total.

Located in Federal
Reserve and Federal Reserve
branch cities.

Items drawn on
Treasurer of United
Located outside FedStates.
eral Reserve and
Federal Reserve
branch cities.

Number.

Amount.

Number.

Amount.

Number.

Amount.

623,524
651,408
741,001 2,143,890
125,990
83,903
,209,312
808,239
217,173
210,066
141,612
124,940
267,652
263,514
176,276
U97,515
163,742
156,725
87,741
78,177
37,572
23,237
36,243
21,565
51,720
37,048
49,220
63,195
709,438
721,870
119,683
145,611
278,060
221,434
39,724
28,578
66,519
76,811
61,624
52,968
212,890
129,722
266,264
350,407
62,751
52,193
66,129
82,511
138,538
89,299
12,757
29,081
59,409
84,839
94,416
48,705
59,222
29,260
43,204
33,644
38,764
38,953
53,927
17,783
24,573

2,364,271
3,093,155
261,209
1,501,803
854,527
586,701
655,724
1,059,822
474,879
358,550
149,586
126,174

78,551
726,774
6,772
137,280
21,573
27,875
22,082
30,162
36,670
20,359
13,278
10,644
9,846
16,369
137,861
12,056
76,587
5,284
19,267

27,566
247,122
1,076
41,930

125,834
2,757,925
115,977
1,064,041
188,836
265,447
159,945
887,986
1,999,754
274,725
439,635
1,373,088
123,427
292,712
274,636
268,351
107,181
363,381
129,517
130,774

376,861
1,857,062
40,472
202,464
150,696
89,038
87,274
247,228
57,695
81,060
15,996
16,146
22,986
20,004
342,875
17,794
109,321
19,256
24,555
17,687
71,175
264,013
22,204
39,866
389,599
14,196
32,885
22,914
26,536
8,474
36,606
12,282
10,816

7,210,635 22,998,659
8,083,973 24,545,481

4,748,036
5,214,411

1,697,090
1,990,362

6,161,522
6,667,004

8,361
14,014
60,255
12,399 !
12,305 j
21,727 !
16,040 i
51,370 |
34,583
13,272
11,905
7,963
18,563
5,043

Number.

1920

1919

3,066,346 2,675,840
4,560,930 I 5,576,154
393,971 j
2,848,395 1,773,600
1,086,166 ! 737,663
739,516 i
529,355
941,320 *
593,456
892,431
1,166,260 I
373,209
675,291 I
525,480
466,650
118,534
200,436
173,061 ! 108,335
230,652
191,423
150,176

4,169
8,611
6,443
8,721
8,455
3,690
640
1,913
2,982
24,265 3,605,224 2,040,440
273,644
108,648
5,443
868,431
7,815 1,362,062
233,844
73,319
1,579
351,233
4,251
183,135
229,930
1,437
95,258
4,887 1,114,890
658,781
7,401 2,326,273 1,251,622
2,605
349,875
215,516
1,714
534,451
2,511 1,484,114
632,840
1,842
168,548
115,128
1,331
403,491
403,635
234,908
105,626
340,845
4,040
162,290
120,297
3,063
410,108
304,857
1,412
147,118
202,007
6,280
118,652
160,390
539

Amount.

1920
1,055,835
4,248,074
125,451
1,052,633
377,566
234,819
363,537
451,186
223,141
167,692
42,923
38,351
61,947
86,181
1,089,010
142,920
395,196
49,413
105,617
72,092
205,784
621,821
77,002
107,709
530,648
28,795
72,612
213,379
79,281
40,797
71,662
57,515
29,138

561,056 30,857,271 21,493,121 12,519,727
745,086 33,202,847

i Includes 1,609 items amounting to $5,869,000, forwarded directly to banks in Baltimore,

1919
935,915
3,989,824
935,981
357,540
187,540
327,787
403,402
157,387
189,846
26,936
28,868
69,268
960,319
77,039
305,746
18,901
86,265
33,270
177,033
481,669
49,329
93,732
233,770
20,117
485,660

48,237
51,201
84,052
18,880
10,835,514
14,043,470

MAKCII, 1920.

309

FEDERAL, RESERVE BULLETIN.
Operation of the Federal Reserve clearing system, Jan. 16 to Feb. 14, 1920—Continued.
[Amounts in thousands of dollars.]
Number of business
days in month.
Federal Reserve Bank or branch.
1920

Number.

1919

Boston
New York
Buffalo
Philadelphia
Cleveland
Cincinnati
Pittsburgh
Richmond
Baltimore
Atlanta
Birmingham...
Jacksonville
Nashville
New Orleans...
Chicago
Detroit
St. Louis
Little Rock....
Louisville
Memphis
Minneapolis
Kansas City
Denver
Omaha
Dallas
El Paso
Houston
San Francisco
Los Angeles
Portland
Salt Lake City.
Seattle
Spokane

26

Total: Jan. 16-Feb. 14,1920
Dec. 16,1919-Jan. 15,1920 .

Items forwarded to Items forwarded to
other Federal Reparent bank or to
serve Banks and
branch in same
their branches.
district.

386,944
834,009
120,481
673,832
28,237
11,361
53,181
85,494
143,739
19,608
15,099
38,977
17,172
39,291
209,814
3,117
19,716
4,079
5,951
1,679
121,841
224,191
61,069
28,864
153,826
37,432
25,839
16,435
15,676
2,432
4,642
9,102
3,265
13,416,395
3,837,934

Number of member
banks in district.

Amount. Number. Amount.
358,407
520,225
.28,714
216,851
21,126
6,248
39,923
64,285
110,210
26,717
12,244
4,361
7,955
19,482
37,379
1,663
9,968
1,245
1,735 I
719 I
69,476
88,204 ;
14,976 :
8,873 !
24,017 !
12,835 S
27,631 i
7,332
8,978
1,153
22,738
4,227
3,651
11,783,548
2,016,665

Number of nonmember
banks on par list.

Federal Reserve Bank.
1920
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco




Total: F e b . 14,192o
Jan. 15,1920.

1919

1920

1919

431
761
682
846
591
431
1,374
543
926
1,050
762
743

424
722
666
819
568
422
1,338
511
S71
994
735
655

248
326
416
1,084
568
470
3,899
2,540
2,361
3,350
1,229

244
321
322
778
312
289
2,500
1,184
1,207
2,161
249
920

9,140

8,725
8,702

17,429
16,985

10,487
10,246

25,840
26,937

8,527
17,750

7,710
22,088
2,153
8,404
66,124
27,768
6,940
10,804
7,572
7,358
6,692
14,813
17,411
1,283
1,730

10,960
4,479
6,228
1,602
10,870
16,699
49,180
986
2,333
1,679
13,428
2,409
3,397
3,115
502
793

88,842
38,419
17,288
75,019
18,399
18,329
83,868
11,069
18,721
7,642
24,482
15,291

17,349
17,946
8,653
4,961
5,051
6,973
21,393
5,111
3,805
14,725
4,084
6,889

715,958
763,149

277,877
322,700

Number of incorporated
banks other than
mutual savings banks
not on par list.
1920

1919

103

261
1,195
1,290
1,660
1,402
1,631
1,023
1,184
148

3,148
3,566

9,877
9,853

1,104
295
138
575

i Includes 5.215 items, amounting to $2,015,000, forwarded direct to member banks in other Federal Reserve districts.

310

FEDERAL RESERVE BULLETIN.

GROWTH OF THE FEDERAL

RESERVE

Some idea of the growth of the Federal Reserve Banks' clearing and check-collection system for the past three years may be had from
the following table and accompanying diagrams showing the average number and
amounts of items handled by all Federal Reserve Banks during each month between March
16, 1917, and January 15, 1920, also changes
in the number of member and nonmember
banks remitting at par each month during the
period under review.
Segregation of the number and amount of
items has been made uniformly during the
period under review under three heads, viz:
1. Items drawn on banks in the Federal
Reserve city.
2. Items drawn on banks in the district of
each Federal Reserve bank outside
the Federal Reserve bank city.
3. On the Treasurer of the United States.
In order to avoid duplication no account was
taken of items forwarded for collection by a
Federal Reserve Bank to another Federal Reserve Bank or branch. Comparison of both
the number and amount of items handled during each month since March 16, 1917, shows a




MARCH. 1920.

PAR COLLECTION SYSTEM, 1917-1920.

practically steady growth of the collection system, as the result of the fuller use made of the
collection facilities of the system by the member banks. These facilities are constantly enlarging with the growth in the number of banks
from which par collections are effected. For
the period under review the number of member
banks shows a growth from 7,625 to 9,089, or
of nearly 20 per cent, while the number of nonmember banks on the par list has increased
from 8,607 to 16,986, or about 100 per cent.
The Federal Reserve par collection service embraces at present about 26,000 banks, or about
90 per cent of all the banks in the United
States, other than mutual sayings banks,
which as a rule do not carry checking accounts.
It may be noted that while the number and
amount of items collected has increased about
sixfold, the amount of items collected from
banks in the Federal Reserve cities shows a
relatively smaller increase, while the amount
of items drawn on banks outside the Federal
Reserve cities and on the Treasurer of the
United States shows a proportionately larger
increase.

MARCH, 1920.

311

FEDERAL RESERVE BULLETIN.

Growth of the Federal Reserve charing system, by monthly periods, from Apr. 15, 1917, to Jan. 15, 1920, inclusive.
Average daily number of items handled.

Average daily amount of items handled.
Drawn on—

Drawn on—
Banks in!

Banks in district I Treasurerof
Federal outside
Reserve Federal I United
j city.
Reserve ! States.

Total.

city. ;

1917.
Apr. 15.
May 1 5 . .
Jane 15..
July 1 5 . .
Aug. 15..
Sept. 15.
Oct. 1 5 . .
Nov. 15..
Dec. 1 5 . .

Banks in
Federal
Reserve
city.

Banks in
district
outside
Federal
Reserve
city.

Treasurer
of United
States.

Total.

Number • Number
of ! of nonmember j member
banks in; banks on
district, par list.

31,162
33,767
37,898
38,476
36,727
36,306
40,591
47,574
47,678

168,607
171,093
179,193
182,622
175,625
182,191
212,935
232,723
240,756

12,582
15,925
16,344
19,100
19,533
23,492
26,797
30,426
33,806

212,351
220,785
233,435
240,198
231,885
241,989
280,323
310,723
322,240

$60,288,002
87,370,859
97,322,883
109,722,256
98,075,919
100,331,694
128,271,466
166,552,773
171,723,439

$32,666,959 |
36,473,163
38,599,461
41,004,720
40,353,278
41,323,621
47,476,204
64,295,210
84,441,761

$2,643,408
3,597,865
4,414,508
11,637,899
9,701,569
11,006,515
13,518,566
17,496,974
27,179,053

$95,598,369 i
127,441,887 I
140,336,852 |
162,364,875 j
148,130,766 !
152,661,830 I
189,266,236 |
248,345,957 I
283,343,253 !

7,625
7,634
7,651
7,666
7.683
7,718
7,747
7,826
7,823

8,607
8,926
3,789
8.805
8,837
9,934
9,052
9,210
9.321

48,549
46,207
51,408
55,034
49,569
51,055
63,549
50,229
55,123
64,931
82,434
85,174

253,458
227,312
259,531
271,506
287,061
295,056
391,264
406,330
441,979
495,441
550,484
590,685

38,130
48,224
58,991
59,228
60,771
77,750
82,536
81,323
87,213
106,539
98,168
135,173

340,137
321,743
369,930
385,768
397,401
423,861
537,349
537,882
584,315
666,911
731,086
811,032

148,033,108
153,847,568
153,701,375
159,441,188
178,372,385
164,539,000
192,220,658
172,600,132
182,321,867
208,639,006
231,014,467
219,162,199

89,065,135
80,248,466
113,134,162
98,201,962
114,099,520
113,407,619
143,751,620
131,047,263
145,374,804
169,025,374
191,310,103
167,471,893

21,116,293
21,316,033
25,827,757
31,563,675
30,928,185
39,054,003
47,181,467
41,063,646
45,695,643
51,048,149
52,790,232
60.766,938

258,214,536
255,412,067
292,663,294
289,206,825
323,400,090
317,000,622
383,153,745
344,711,041
373,392,314
428,712,529
475,114,802
447,401,030

7,909
7,972
8,013
8,059
8,113
8,165
8,212
8,294
8,428
8,510
8,584
8;612

9,268
9,319
9,425
9,450
9,475
9,710
9,761
10,206
10,549
10,318
10,219
10,409

98,584
90,944
109,083
138,817
129,378
132,688
149,902
139,678
149,460
164,761
177,569
182,347

632,118
599,951
640,346
686,512
665,641
696,457
737,007
731,680
761,680
824,862
915,794
975.095

77,282
126,051
114,563
137,228
157,820
118,248
95,986
83,659
77,201
93,437
107,551
88,071

807,984
816,946
863,992
962,557
952,839
947,393
982,895
955,017
988,341
1,083,060
1,200,914
1,245,513

224,904,918
198,935,424
168,567,377
197,456,121
176,737,129
196,594,573
218,737,336
194,733,618
208,529,081
235,072,612
236,521,957
251,531,229

162,371,765
156,360,759
171,714,589
167,142,262
163,067,746
191,330,944
194,300,102
176,612,134
202,812,209
223,417,562
246,055,511
254,594,746

37,753,800
63,221,002
46,746,505
49,329,926
45,278,441
48,316,599
49,869,067
57,868,769
51,935,604
45,272,641
37,355,291
36,506,264

425,030,483
418,517,185
387,028,471
413,928,309
385,083,316
436,242,116
462,906,505
429,214,521
463,276,894
503,762,815
519,932,759
542,632,239

8,692
8,717
8,729
8,758
8,788
8,825
8,848
8,894
8,920
8,955
9,008
9,055

10,595
10,622
10,885
11,060
11,261
11,782
12,071
12,578
12,962
13,852
14,860
15,851

197,562 1,028.259

78,160

1,303,981

270,143,956

264,521,801

29,612.240 |

564,277,997

9,089

16.986

1918.
Jan. 15.
Feb. 15..
Mar. 15..
Apr.15..
May 1 5 . .
June 15..
July 15..
Aug. 15..
Sept. 15.
Oct. 1 5 . .
Nov. 15..
Dec. 14..
1919.
Jan. 15.
Feb. 15..
Mar. 15..
Apr. 15..
May 1 5 . .
June 15..
July 1 5 . .
Aug. 15..
Sept. 15.
Oct. 1 5 . .
Nov. 15..
Dec. 1 5 . .
1920.
Jan.15.




312

FEDERAL RESERVE BULLETIN.

MARCH. 1920.

NUMBER OF BANKS ON PAR LIST,
ALSO AVERAGE DAILY NUMBER AND AMOUNT
OF ITEMS HANDLED BYER.BANKS, IW-1919.
600
500
400

600
500
400
300
ZOO

100
0

AVERAGE DAIWAMOUtiT OFITEMS HANDLED DURING EACH MONTH, III MILLIONSOEDOLLARS.

300
ZOO
fOO
0

$$!$$ IOems drami cm US. Treasurer.
1.400.000
MO0.000
1.000.000
800.000

4 w. ;

600.000

400.000
200.000 -A
0

30.000
2S.000
20.000
1S.000
10.000
S.000




o

i

i

A

&^

i

Hwm m

^*

¥i

x*^O

I I
M

I

AVERAGEDAILY'NUMBEROf'ITEMSHAH PLED DURIHG' EACh'MOtiTH.
WflM Items dnxwncfcj&ajtte in,£JL3Banfc<Zbies.
HHP Itemsdrawn, on &znJesou£sLde£'&£aAJca&as.
^M Items drawKorvU.S.Jreasurer.

^!|

i I

^\<
• * »

kvX»*

1
mm
i i i 1 4w '4I i
I
i i LIST.
1
1
i i I ION1PAR
i Ii i i
i I i I i I i TOTAL
i i i INUMBER
I i OFIBANKS
i at

^§
»^,

^x\^

IS

%

WMMemJberJBanKs.

i
191?

?

^VX\

i i Ii

xxv"

JVonrMember JBarfcs: I H

>>

1918

1919

1.400.000
MO0.O00
1.000.000
#00.000
600.000
100.000
200.000

0

30.000
2S.00O
20.000
15.000
10.000
S.000
0

MARCH,

1920.

FEDERAL RESERVE BULLETIN.

313

OPERATIONS OF THE FEDERAL RESERVE BANKS.

Substantial increases in the volume of discount and note issue operations accompanied
by further declines in* gold and cash reserves
are some of the salient features of the development of Federal Reserve banking during the
four-week period between January 23 and
February 20.
Fiscal operations of the Treasury included
the redemption on Februar}^ 2 and 16 of
balances of outstanding loan certificate series
issued at the beginning of September and December of the past year and the issue on February 2 of about 305 millions of tax certificates
maturing on March 15, the date of the first
installment of income and excess profits tax
payments. Notwithstanding a net reduction
in the amount of outstanding Treasury certificates, the Federal Reserve Bank holdings of
paper secured by such certificates show an increase for the period of over 60 millions. Following the restoration of the differential in
favor of paper secured by Liberty notes and
Victory notes, as against ordinary commercial
paper, the Federal Reserve Bank holdings of
war paper thus secured increased 78.7 millions
while holdings of ordinary commercial paper,
subject at present to a practically uniform 6
per cent discount rate, show an increase of
66.2 millions. At the closing date of the
period total discounts held by the Federal.
Reserve Banks, 2,358.5 millions, were 205.1
millions in excess of the corresponding total
reported four weeks before. Of the total discounts held on the two dates, about 65 per cent
was war paper. On the more recent date, of
a total of 1,525.2 millions of such paper held
706.9 millions, or 46.3 per cent, was secured by
Liberty bonds, 244.8 millions, or 16.1 per cent,
by Victory notes, and 573.5 millions, or 37.6
per cent, by Treasury certificates, as against
45.4, 17.6, and 37 per cent of a total of 1,386.3
millions of war paper reported four weeks
earlier.
For the period under review the average
maturity of the discounted paper held by the
Federal Reserve Banks shows a considerable
decrease, largely through increases in the
amounts of 15-day and 60-day paper by 182.1




and 126.5 millions, and a decrease in the
amount of 90-day paper by nearly 160 millions.
Holdings of acceptances purchased in the open
market show a slow but continuous decline
from 575.8 to 531.7 millions, apparently as the
result of the higher Federal Reserve rates recently adopted. Differences in the amounts of
Treasury certificate holdings represent largely
amounts of temporary special certificates held
by the Federal Reserve Banks to cover advances to the Government pending collection
of funds from depositary institutions.
Discounted paper held by the several banks
include amounts held under discount for other
Federal Reserve Banks. During the period
under review the Federal Reserve Banks of
Richmond and Kansas City redeemed their rediscounted paper, while the New York and
Philadelphia banks increased their rediscounts
from 75.4 to 93.9 millions, distributed among
the Cleveland, Atlanta, Chicago, Minneapolis,
Kansas City, and Dallas banks. In the meantime the holdings of bankers' acceptances purchased from the New York and Boston banks
show a further decline from 48.7 to 30.4
millions, the smaller amount being distributed
among the Boston, Cleveland, Atlanta, Chicago, Kansas City, and San Francisco banks.
Members' reserve deposits as well as Government deposits show moderate declines for
the period, resulting in a decrease of net deposits from 1,817.8 to 1,785.8 millions. Federal Reserve note circulation expanded during
the period from 2,844.2 to 2,977.1 millions, or
at an average weekly rate of 33.2 millions,
while the banks' liabilities on Federal Reserve
bank note circulation declined from 254.8 to
240.9 millions.
Further export withdrawals, sales^of gold
held abroad and apparently also some exchange of gold for other reserve cash, account
for a reduction of 56.8 millions in gold reserves
as against a gain of 4.4 millions in other cash
reserves. The result of the considerable note
expansion and the simultaneous decline in
reserves is seen in the continuous decline of
the banks' reserve ratio from 44.8 to 42.7 per
cent.

314

FEDERAL RESERVE BULLETIN.

MARCH,

1920.

Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Jan. 80 to Feb. 20, 1920.
RESOURCES.
[In thousands of dollars.]
!

New
Phila- Cleve- RichAtBoston. York. delphia land. mond. lanta.
Gold and gold certificates:
9,239
136,008 1,190
Jan. 30
9,544
115,488 1,151
Feb. 6
113,966
9,556
942
Feb. 13
112,668
9,788
952
Feb. 20
Gold settlement fund, Federal
Reserve Board:
77,954 30,218
32,176
Jan. 30
70,049 28,850
20,455
Feb. 6
22,204
74,882 29,701
Feb. 13
48,897
43,078 27,283
Feb. 20
Gold with foreign agencies:
8,345
41,956 9,146
Jan. 30
8,346
41,956 9,145
Feb. 6
8,236
41,406 9,026
Feb. 13
41,406* 9,026
8,236
Feb. 20
Gold with Federal Reserve
Agents:
72,129 281,778 81,721
Jan. 30
71,806 290,732 81,321
Feb. 6
73,713 299,877 84,168
Feb. 13
88,895 304,712 84,252
Feb20
Gold redemption fund:
25,088 8,592
Jan. 30
• 22,601
25,647
25,191 10,665
Feb. 6
27,450
Feb. 13
24,986 12,072
Feb. 20
13,992
24,918 12,451
Total gold reserves:
144,490 562,784 130,867
Jan. 30
Feb.6
135,798 543,416 131,132
Feb. 13
141,159 555,117 135,909
Feb. 20
•
526,782 133,964
Legal-tender notes, silver, etc.:
Jan. 30
4,836
46,171
236
Feb.6
• 6,568
46,387
66
Feb. 13
6,530
184
47,851
Feb. 20
6,035
149
48,620
Total cash reserves:
Jan. 30
149,326 608,955 131,103
Feb.6
• 142,366 589,803 131,198
Feb. 13
147,689 602,968 136,093
Feb. 20
175,843 575,402 134,113
Bills discounted:
Secured by Government
war obligations] —
Jan. 30
112,933 595,495 159,272
Feb.6
116,703 581,479 154,695
Feb. 13
106,651 591,022 154,385
Feb. 20
100,581 616,710 154,329
All other48,085 166,632 35,868
Jan. 30
52,180 170,873 42,068
Feb.6
Feb. 13
, 81,880
._,__. 206,544 45,914
Feb.20
i 77,417 202,684 45,454
Bills bought in open market: 2 '
51,511 191,215 7,825
Jan. 30
48,877 196,876 7,861
Feb.6
22,984 204,561 7,194
Feb. 13
16,417 217,314 7,094
Feb. 20
United States Government
bonds:
1,457
1,385
Jan. 30
1,457
1,385
Feb.6
1,457
1,385
Feb. 13
1,457
1,385
Feb. 20
United States Victory notes:
50
Jan. 30
50
Feb.6
50
Feb. 13
50
Feb. 20
United States certificates of
indebtedness:
21,896
69,240 31,261
Jan. 30
21,842
68,202 31,013
Feb.6
23,627
66,482
36,938
Feb. 13
21,584
62,171 30,921
Feb. 20
Total earning assets:
234,964 1,024,089 235,611
Jan. 30




Feb. 6
Feb. 13
Feb. 20

14,067
14,119
10,190
13,314
41,116
40,120
40,431
41,044

2,521
2,369
2,289
2,319

8,523
8,601
8,574
8,552

Chicago.

San
St. Minne-j Kansas
Louis. apolis. j City. Dallas. Francisco.

24,278
24,415
24,349
24,296

2,891
2 937
2,895
2,796

24,241 15,979 97,947 20,273
36,357 21,579 88,924 19,652
29,365 16,287 88,152 21,076
28,356 21,581 73,988 13,309

7,294
7,306
7,248
7,275

Total.

6,948
6,815
6,525
7,012

11,895
12,331
15,530
11,648

225,156
205,393
202,425
200,973

20,378 40,637 14,117
21,797 46,734 13,574
15,778 38,156 15,232
20,253 31,865 16,044

24,488
26,069
33,568
30,440

439,524
434,160
424,832
396,138

302
317
361
353

9,374
9,374
9,252
9,252

5,602
5,602
5,528
5,528

4,116
4,116
4,061
4,061

13,604
13,604
13,426
13,426

5,373
5,373
5,303
5,303

3,087
3,087
3,046
3,046

5,487
5,487
5,415
5,415

2,972
2,972
2,933
2,933

5,259
5,259
5,190
5,190

114,321
114,321
112,822
112,822

122,298
122,306
123,439
123,859

39.204
36,913
35,004
33,380

59,938
57,988
56,464
55,643

217,271
209,293
204,398
208,537

57,703
57,517
59,184
58,463

33,755
34,070
34,342
33,668

39,430
37,813
38,420
38,825

32,369
31,443
31,655
31,057

81,830
85,225
80,911
89,507

1,119,426
1,116,427
1,121,757
1,150,798

1,150 10,962
434 7,011
1,990 8,437
9,721
1,103

7,125
5,542
5,207
5,417

14,347
20,782
23,550
17,443

6,197
5,025
5,170
4,768

1,059
416
88
142

3,714
5,276
4,535
3,993

2,585 10,809
3,487 11,783
3,186
9,873
3; 679 11,456

114,229
121,259
126,544
109,083

95,681
97,826
90,775
95,254

367,447
357,018
353,875
337,690

92,437
90,504
93,628
84,639

65,573
66,676
60,502
64,384

89,570
95,627
86,887
80,451

58,991
58,291
59,531
60,725

134,281
140,667
145,072
148,241

2,012,656
1,991,560
1,988,380
1,969,814

3,211
3,283
3,343
3,511

81
54
74
62

446
503
540
645

1,719
1,613
1,504
1,096

272
157
194
194

61,277
63,096
64,133
65,626

188,972
187,159
185,877
189,374

82,734
369,382 95,648
88,479 98,996 359,280 93,787
80,886 92,107 355,618 96,971
79,613 96,979 340,168 88,150

65,654
66,730
60,576
64,446

90,016
96,130
87,427
81,096

60,710
59,904
61,035
61,821

134,553
140,824
145,266
148,435

2,073,933
2,054,656
2,052,513
2,035,440

96,940
90,401
100,866
112,845

76,305
73,033
75,594
78,271

63,749
62,143
61,619
61,081

153,642
167,142
165,571
175,515

48,300
51,046
50,405
49,686

23,883 32,806 45,476
24,813 30,745 47,925
29,144 32 636 49,246
28,473 45,838 50,523

49,091 1,457,892
51,432 1,451,557
52,423 1,469,562
51,351 1,525,203

46,555
49,459
49,120
49,635

23,455
24,655
24,914
26,036

34,684
35,034
35,645
38,157

161,272
166,735
175,464
178,654

45,062
48,056
45,667
52,595

41,233 55,141 17,035
44,924 57,140 16,275
42,470 54,328 15,750
41,699 54,663 17,304

41,443
44,583
46,177
49,023

716,465
751,982
823,873
833,321

73,355
73,955
76,182
69,611

10,748
9,917
10,117
9,738

11,098
12,648
17,599
17,449

70,807
70,086
73,636
75,088

10,860
9,466
9,798
9,802

5,691
4,933
4,537
3,012

1,037 119,256
1,072 111,813
1,818 102,323
1,768 94,095

561,313
554,750
542,600
531,703

833
833
833
833

1,235
1,235
1,235
1,235

375
114
114
114

4,477
4,477
4,477
4,477

1,153
1,153
1,153
1,153

116
116
116
116

2,632
2,633
2,632
2,632

27,036
26,776
26,775
26,775

188,005
186,353
185,302
188,572

82,530
88,252
80,623
79,304

967
806
575
802

204
227
263
309

1,199 1,935
1,170 I 2,262
1,332 I 1,743
1,725 2,478

7,910
7,246
11,851
10,315

3,966
3,966
3,966
3,966

64
63
63
63

10
10
10
10
23,571
24,012
23,421
23,436

241,264
240,141 1,018,937 237,022 238,670
1235,681 1,070,116 245,816 250,432
1216,538 1,100,386 239,183 256,370

12,260
12,260
15,260
12,260

15,665 40,500 17,560
15,665 40,474 17,162
15,665 41,328 17,291
15,665 40,328 17,479

8,480
8,480
8,480
8,480

122,935
126,883
124,314
130,715

79,403
83,266
84,747
81,780

124,003 125,575
121,100 125,607
127,120 130,645
127,540 !l32,469

430,698
448,914
460,476
474,062

15,323
17,240
19,169
16,411

8,300
8,300
9,300
8,300

12,365 I 276,421
11,414 I 276,064
13,356 i 290,317
11,575
268,610

120,048 75,814 224,787 I 3,039,191
121,239 77,538 221,875 I 3,061,192
126,852 80,080 216,911 I 3,153,190
136,095 81,861 208,676 ! 3,185,675

MABCH, 1920.

315

FEDERAL RESERVE BULLETIN.

Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Jan, 80, to Feb.

20,1920—Continued.

RESOURCES—Continued.
[In thousands of dollars.]

Boston.

New
Phila- Cleve- RichYork. [delphia. land. mond.

Atlanta.

Chicago.

553
553
553
563

480
503
506
506

2,116
2,116
2,116
2,116

74,597 81,640
73,947 66,533
85,491 87,496
87,794 70,459

37,701
39,044
47,032
42,806

116,389
115,782
121,409
129,046

San
St.
Minne-j Kansas
j Total.
Louis. apolis. City. Dallas. FranCisco. !

_L
Bank premises:
i
Jan. 30
1,106
Feb. 6..
; 1,110
Feb. 13
1,113
Feb.20
1,117
Uncollected items and other deductions from gross deposits:
Jan. 30
64,644
Feb. 6
58,303
94,014
Feb. 13
Feb.20
79,175
Five per cent redemption fund
against Federal Reserve bank
notes:
1,072
Jan. 30
Feb.6
1,072
Feb.13........
1,072
Feb.20
1,072
All other resources:
Jan. 30
348
Feb. 6 . . . .
489
Feb. 13...
282
Feb.20
339
Total resources:
Jan. 30
451,460
Feb.6....
443,481
479,851
Feb.13.....
474,084
Feb.20
1
Includes bills discounted for
other Federal Reserve Banks:
Jan. 30
Feb. 6
i
Feb. 13
... I
Feb.20
i
8
Includes bankers' acceptances
bought from other Federal
Reserve Banks:
With their indorsementJan. 30
Feb. 6
Feb. 13
Feb.20
Without their indorsementJan. 30
3,579
Feb. 6..
3,250
Feb. 13
3,250
Feb.20
3,250

3,094
3,094
3,094
3,094

500
500
500
500

211,926 76,407
204,014 69,626
234,838 87,732
234,058 92,312

640
640
641
641

231
231
231
231

10,559
10,586
11,103
11,144

66,196 19,696 77,363 51,608 54,961
66,638 20,530 73,831 55,795 52,928
81,341 20,328 84,601 53,915 54,136
73,675 21,184 83,590 58,704 56,850

933,128
896,971
1,052,333
1,029,653

356
356
866

515
515
515
515

462
462
462
462

506
506
506
533

2,729
2,668
2,681
2,556

1,475
1,475
1,475
1,475

1,155
1,059
1,124
1,095

435
715
331
503

782
843
827
855

1,660
1,483
1,799
2,079

336
237
317
322

406
482
290
570

977
971
971
970

568
562
562
562

665
665
665
665

12,260
12,232
12,114
12,724

1,103
921
1,008
948

569
353
448
256

465
309
279
299

569
693
285
356

294
131
130
138

535
820
568
575

279
283
241
284

129
95
59
63

517
396
336
238

233
195
162
131

300
363
324
224

5,341
5,048
4,122
3,851

851,896
819,437
914,705
916,444

445,665
440,174
472,064
467,839

507,093
501,784
523,844
535,573

289,934
278,073
296,671
279,034

261,712
265,124
271,247
273,753

920,780
928,395
941,986
948,046

285,750
288,184
304,050
294,012

165,803
171,618
166,515
168,558

289,383
293,029
300,649
302,451

189,439
194,500
196,260
203,612

415,497
416,886
417,533
415,081

6,074,412
6,040,685
6,285,375
6,278,487

4,915

15,000
14,040
15,000
11,500

48,940
54,200
42,195
40,890

5,000
9,950

14,950
19,341
21,935
22,390

5,036
5,036

5,087
5,087

8,900
" 600

I 8', 500

2,978
545
5,090

5,000
4,274

4,600
1,495
20,263
20,263

1,622
950
5,050
5,050

5,090
41

18,621
15,619
11,996
3,455

•87,790
96,181
97,680
93,919

3,408
3,408
3,408
3,408

25,649
22,277
18,654
10,113

LIABILITIES.
Capital paid in:
Jan. 30...
Feb. 6
Feb. 13....
Feb.20..
Surplus fund:
Jan. 30
Feb. 6
Feb.13
Feb.20
Government deposits:
Jan. 30
Feb. 6
Feb. 13
Feb.20
Due to members—reserve account:
Jan. 30
Feb. 6
Feb. 13.....
Feb.20
Deferred availability items:
Jan. 30
Feb. 6...
Feb. 13....
Feb.20




7,198
7,210
7,210
7,210

22,399
23,453
23,804
23,796

3,469
3,485
3,493
3,504

12,525
12,541
12,617
12,637

4,081
4,083
4,094
4,122

3,112
3,123
3,127
3,133

4,021
4,031
4,046
4,047

3,419
3,484
3,482
3,484

5,837
5,874
5,968
5,974

87,892
89,119
89,674
90,531

8,359
8,359
8,359
8,359

45,082
45,082
45,082
45,082

4,695
4,695
4,695
4,695

14,292
14,292
14,292
14,292

3,724
3,724
3,724
3,724

3,569
3,569
3,569
3,569

6,116
6,116
6,116
6,116

3,030
3,030
3,030
3,030

7,539
7,539
7,539
7,539

120,120
120,120
120,120
120,120

4,777
3,762
851
2,718

31,510
4,602
7,942
38,035

2,527
2,521
327
2,799

4,284
7,747
1,490
4,254

4,268
3,711
1,733
3,192

1,467
3,575
368
1,685

3,629
2,719
1,740
3,208

2,856
2,514
1,232
2, ©20

5,361
5,807
3,100
6,578

72,974
42,446
24,218
75,587

56,250
56,937
56,625
58,952

269,728
272,792
253,585
259,363

68,427
69,513
72,270
69,403

51,366
53,175
50,096
50,072

86,714 63,079 117,656
93,723 65,055 118,919
88,719 62,461 118,138
91,613 67,171 118,807

1,850,712
1,869,438
1,837,865
1,828,891

34,044 86,132 50,897
34,757 79,180 52,894
43,372 112,232 65,621
38,945 104,099 56,872

13,638
15,432
16,036
17,158

64,840
62,260
75,745
72,261

33,767
36,867
37,198
33,427

720,520
654,735
880,451
815,606

113,721
109,653
118,967
115,353
54,992
41,364
67,960
59,440

729,545
734,709 100,971
730,617 92,946
707,113 91,309
150,124
120,666
191,979
179,458

67,665
55,980
84,987
83,115

32,709
34,134
39,376
38,452

316

M A R C H , 1920.

FEDERAL RESERVE BULLETIN.

Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Jan. 30 to Feb. 20,

1920—Continued.

L I A B I L I T I E S—Continued.
[In thousands of dollars.]
New
York.

Boston.

Other deposits, including foreign Government credits:
Jan. 30
Feb. 6
Feb. 13
Feb. 20
Total gross deposits:
Jan. 30
Feb. 6
Feb. 13
Feb. 20
Federal Reserve notes in actual
circulation:
Jan. 20
Feb. 6
Feb. 13
Feb. 20
Federal Reserve bank notes in
circulation—net liability:
Jan. 30
Feb. 6
Feb. 13
Feb. 20
All other liabilities:
Jan. 30.
Feb. 6
Feb. 13
Feb. 20
Total liabilities:
Jan. 30
Feb. 6
Feb. 13
Feb. 20

Phila- Cleve- Richdelphia. land. mond.

Atlanta.

Chicago.

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

San
Francisco.

Total.

6,486
9,427
5,510
5,497

42,394
40,045
42,713
42,165

6,493
6,928
7,612
6,796

i,022
.,236
>,065
1,116

3,654
3,720
3,624
3,620

2,652
2,674
2,663
2,766

9,965
10,072
9,978
9,741

3,859
3,767
4,009
3,831

2,261
2,314
2,184
2,234

4,011
3,890
3,693
3,665

2,171
2,070
2,036
2,131

5,450
4,733
6,957
6,804

95,418
95,876
97,044
95,366

179,976
164,206
193,288
183,008

953,573
900,022
973,251
966,771

176,702
167,888
186,999
183,834

208,930
202,299
209,703
223,995

136,435
124,328
143,353
126,339

95,473
96,889
102,987
103,462

370,109
369,791
377,285
377,457

127,451
129,885
143,633
133,298

68,732
74,496
68,684
71,149

159,194
162,592
169,897
170,747

100,815
103,773
105,105
109,774

162,234
166,326
165,393
165,616

2,739,624
2,662,495
2,839,578
2,815,450

234,991
242,256
249,453
254,247

769,170
788,121
809,254
817,411

222,802
225,836
238,871
238,059

256,556
257,936
272,544
270,050

130,777
130,906
130,529
129,632

142,090
143,916
144,173
146,262

481,109
488,999
495,197
501,228

134,209
134,455
136,668
137,133

81,635
81,645
82,386
82,141

99,565 71,677 226,363 2,850,944
100,259 73,868 223,578 2,891,775
100,539 74,499 224,974 2,959,087
101,563 76,782 222,616 2,977,124

19,369
19,649
19,460
19,096

50,853
51,090
50,467
49,098

27,567
27,607
27,233
26,402

21,439
21,116
20,965
20,289

11,794 15,278 39,790
11,780 15,220 39,210
11,678 14,860 38,633
11,645 14,698 37,908

15,359
14,976
14,778
14,515

8,070
7,995
7,899
7,692

19,471
18,902
18,847
18,684

1,567
1,801
2,081
2,164

10,819
11,669
12,847
14,286

1,890
2,138
2,256
2,549

1,544
1,807
2,011
2,256

711
841
890
1,058

707
919
1,039
1,132

2,955
3,562
3,962
4,524

926
1,061
1,153
1,220

685
790
850
874

1,016
1,129
1,204
1,294

451,460
443,481
479,851
474,084

1,851,896
1,819,437
1,914,705
1,916,444

445,665
440,174
472,064
467,839

507,093
501,784
523,844
535,573

289,934
278,073
296,671
279,034

261,712
265,124
271,247
273,753

920,780
928,395
941,986
948,046

285,750
288,184
304,050
294,012

165,803
171,618
166,515
" "">, 558

289,383
293,029
300,649
302,451

50,000
49,800
49,735
48,100

32,790
41,381
47,945
45,819

11,680
9,628 11,607
9,398 11,592
9,727 11,104

250,530
248,780
245,810
240,858

638
717
746
815

1,844
1,962
2,067
2,232

25,302
28,396
31,106
34,404

189,439
194,500
196,260
203,612

415,497
416,886
417,533
415,081

6,074,412
6,040,685
6,285,375
6,278,487

MEMORANDA.

Contingent liability as indorser
on:
Discounted paper rediscounted with other Federal Reserve B a n k s Jan. 30
Feb. 6
Feb. 13
Feb. 20
Bankers' acceptances sold
to other Federal Reserve
BanksJan. 30
Feb. 6
Feb. 13
Feb. 20

5,000
5,000

87,790
96,181
97,680
93,919

4,600
1,495
20,263
20,263

4,600
1,495
20,263
20,263

Maturities of bills discounted and bought, also of Treasury certificates of indebtedness.
fin thousands of dollars.]
Within 15
days.
Bills discounted:
Jan. 30
Feb. 6
Feb. 13
Feb. 20
Bills bought:
Jan. 30
Feb. 6
Feb. 13
Feb. 20
United States certificates of indebtedness:
Jan. 30
,
Feb.6
Feb. 13
Feb. 20




16 to 30
days.

31 to 60
days.

61 to 90
days.

,385,117
,432,954
,457,971
,511,016

206,267
172,123
223,771
219,421

309,576
320,861
357,350
425,383

255,093
261,197
239,269
188,067

115,267
123,716
137,611
139,153

127,669
136,158
127,339
117,033

249,208
222,786
207,592
197,367

69,169
72,090
70,058
78,150

13,061
14,472
24,053
5,772

4,586
4,500
6,000
11,570

28,524
11,179
10,853
19,337

46,152
6,000
5,500
4,000

Over 90
days.

18,304
16,404
15,074
14,637

Total.

2,174,357
2,203,539
2,293,435
2,358,524
561,313
554,750
542,600
531,703

184,098
239,913
243,911
227,931

276,421
276,064
290,317
268,610

MARCH,

317

FEDERAL, RESERVE BULLETIN.

1920.

FEDERAL RESERVE NOTES.
Federal Reserve note account of each Federal Reserve Bank at close of business on Fridays, Jan. 30 to Feb. 20, 1920.
[Tn thousands of dollars.]

Federal Reserve notes:
Received from a g e n t s Jan 30
Feb. 6
Feb. 13.
Feb. 20
Held by banks—
Jan.30
Feb.6
Feb.13
Feb.20
In actual circulation—
Jan.30
Feb.6
Feb.13
Feb.20.....
Gold deposited with or to credit
of Federal Reserve agent:
Jan.30
Feb.6
Feb. 13
Feb.20
Paper delivered to Federal Reserve agents:
Jan.30
Feb. 6
Feb. 13
Feb. 20

Boston.

New
York.

Philadelphia.

246,496
248,173
254,900
262,182

898,612
890,621
907,429
910,635

232,709
237,728
251,076
249,499

11,505
5,917
5,447
7,935

Cleve- Richland. mond.

Atlanta.

Chicago.

512,616
520,938
523,363
540,602

268,746
271,834
283,447
283,846

135,555
134,463
135,154
134,780

146,338
148,438
148,816
151,858

129,442 9,907 12,190
102,500 11,892 13,898
98,175 12,205 10,903
93,224 11,440 13,796

4,778
3,557
4,625
5,148

4,248
4,522
4,643
5,596

256,556
257,936
272,544
270,050

130,777
130,906
130,529
129,632

142,090
143,816
144,173
146,262

234,991
242,256
249,453
254,247

769,170
788,121
809,254
817,411

222,802
225,836
238,871
238,059

72,129
71,806
73,713
88,895

281,778
290,732
299,877
304,712

81,721
81,321
84,168
84,252

212,529 951,245 155,901
217,760 946,763 171,789
211,515 1,000,085 169,852
194,415 1,034,865 181,469

San
St.
Minne- Kansas
FranLouis. apolis. City. Dallas. cisco.

153,298 83,511 106,247
152,812 83,426 106,320
152,779 83,348 106,647
154,278 83,274 107,952

31,507 19,089
31,939 18,357
28,166 16,111
39,374 17,145

1,876
1,781

Total.

75,691
76,940
77,270
79,622

270,964
267,959
263,745
263,261

3,130,783
3,139,652
3,187,974
3,221,789

4,014
3,072
2,771
2,840

44,601
44,381
38,771
40,645

279,839
247,877
228,887
244,665

71,677
73,868
74,499
76,782

226,363
223,578
224,974
222,616

2,850,944
2,891,775
2,959,087
2,977,124

1,133

6,682
6,061
6,108
6,389

134,209
134,455
136,668
137,133

81,635
81,645
82,386
82,141

99,565
100,259
100,539
101,563

122,298 39,204 59,938 217,271 57,703
122,306 36,913 57,988 209,293 57,517
123,439 35,004 56,646 204,398 59,184
123,859 33,380 55,643 208,537 58,463

33,755
34,070
34,342
33,668

39,430 32,369 81,830
37,813 31,443 85,225
38,420 31,655 80,911
38,825 31,057 89,507

1,119,426
1,116,427
1,121,757
1,150,798

60,075
66,549
65,944
62,493

95,847 63,548 197,226
95,131 65,272 201,284
98,549 66,814 189,614
110,792 69,595 183,092

2,647,947
2,690,261
2,761,176
2,834,158

210,819
204,533
219,989
229,750

101,972
102,972
104,072
110,787

108,953
105,773
114,335
115,654

481,109
488,999
495,197
501,228

385,610
403,867
414,584
429,163

104,222
108,568
105,823
112,083

962

Federal Resm:e note account of each Federal Reserve agent at close of business on Fridays, Jan. 80 to Feb. 20, 1920.
[In thousands of dollars.]

New
Boston. York.
Federal Reserve notes:
Received from ComptrollerJan. 30
483,600
Feb.6
487,600
Feb.13
498,520
Feb.20
511,960
Returned to ComptrollerJan. 30
205,284
Feb.6
208,607
Feb.13
210,700
Feb.20
212,518
Chargeable to Federal Reserve a g e n t Jan. 30
278,316
Feb.6
278,993
Feb.13
287,820
Feb. 20
299,442
In hands of Federal Reserve agent—
Jan.30
31,820
Feb.6
30,820
Feb.13
32,920
Feb.20
37,260
Issued to Federal Reserve
Bank less amount returned to Federal Reserve agent for redemp- I
tion—
j
Jan. 30
1246,496
Feb.
~ ' 6"
248,173
Feb.13
254,900
Feb.20
262,182

Collateral held as security for
outstanding notes:
Gold and gold certificatesJan. 30
Feb.6
Feb.13
Feb.20




Phila- Cleve- Richdelphia. land. mond.

Chicago.

San
St. Minne- Kansas
FranLouis. apolis. City. Dallas. cisco.

Total.

2,008,720
2,024,440
2,046,240
2,052,940

510,780
510,780
528,780
538,380

489,200
491,340
505,140
513,840

305,860
305,860
305,860
308,360

302,000
305,000
306,600
311,000

860,120
868,520
878,600
896,440

299,600
299,900
300,900
302,800

154,080
154,080
154,080
155,080

207,300
207,300
207,820
210,320

1,001,388
1,012,819
1,019,811
1,023,305

256,771
260,172
263,324
265,741

190,534
193,526
196,393
198,974

140,562
142,854
144,762
146,386

103,542
105,492
106,834
107,837

320,954
328,932
333,827
339,688

125,302
127,488
129,821
131,542

60,669
61,354
62,732
63,406

93,393
95,010
96,403
97,998

1,007,332
1,011,621
1,026,429
1,029,635

254,009
250,608
265,456
272,639

298,666
297,814
308,747
314,866

165,298
163,006
161,098
161,974

198,458
199,508
199,766
203,163

539,166
539,588
544,773
556,752

174,298
172,412
171,079
171,258

93,411
92,726
91,348
I 91,674

108,720
121,000
119,000
119,000

21,300
12,880
14,380
23,140

29,920
25,980
I 25,300
31,020

29,743
28,543
25,944
27,194

52,120 26,550 21,000
51,070 18,650 19,600
50,950 21,410 18,300
51,305 16,150 16,980

9,900
9,300
8,000
8,400

5,970
4,770
4,370

17,785
16,610
15,055
14,905

9,950
9,950
9,850
9,450

366,468
350,373
345,879
359,174

898,612
890,621
I 907,429
910,635

232,709
237,728
251,076
249,499

268,746
271,834
283,447
283,846

135,555 1146,338
134,463 148,438
135,154 148,816
.134,780 151,858

512,616
520,938
523,363
540,602

153,298
152,812
152.779
154,278

83,511
83,426
83,348
83,274

108,247
106,320
106,647
107,952

75,691
76,940
77,270
79,622

270,964
267,959
263,745
263,261

3,130,783
3,139,652
3,187,974
3,221,789

28,025
28,025
32,025
29,025

2,500
2,500
2,500
2,500

4,000
4,000
4,000
4,000

13,052
13,052
13,052
13,052

183,740
183,740
183,740
183,740

145,980
146,980
146,980
149,780

419,880
420,480
420,480
422,000

6,187,120
6,222,280
6,300,000
6,372,900

52,504
2,689,869
53,430 142,571 2,732,255
54,655 146,855 2,766,147
55,253 149,289 2,791,937

113,907 93,476 280,914 3,497,251
112,290 93,550 277,909 3,490,025
111,417 92,325 273,595 3,533,853
112,322 94,527 272,711 3,580,963

8,831
8,831
8,831
8,831

240,148
240,148
244,148
241,148

318

FEDERAL RESERVE BULLETIN.

MARCH, 1920.

Federal Reserve note account of each Federal Reserve agent at close of business on Fridays, Jan. SO to Feb.

20,1920—Oontd.

[In thousands of dollars.]

Boston.

Collateral held as security for
outstanding notes—Contd.
Gold redemption f u n d Jan. 30
Feb.6
Feb.13
Feb. 20
Gold settlement fund, Federal Reserve B o a r d Jan. 30
Feb.6
Feb. 13
Feb. 20
Eligible paper, minimum
required i—
Jan. 30
Feb.6
Feb. 13
Feb. 20




16,129
14,806
13,713
14,895
56,000
57,000
60,000
74,000
174,367
176,367
181,187
173,287

New
P Ma.

Cleve- Richland. mond.

Atlanta.

Chicago.

San
St.
Minne- Kansas
FranLouis. apolis. City. Dallas. cisco.

14,332
10,932
12,779
15,363

14,273
14,281
11,414
14,834

2,204
3,913
2,004
3,380

2,438
3,488
4,146
3,143

9,126
9,149
9,254
9,393

3,773
3,587
3,254
3,533

90,000 67,389
90,000 70,389
100,000 71,389
105,000

80,000
80,000
80,000
80,000

37,000
33,000
33,000
30,000

55,000
52,000
50,000
50,000

208,145
200,144
195,144
199,144

49,930
49,930
51,930
50,930

8,038
16,992
16,137
15,972

616,834
599,889
607,552
605,923

150,988
156,407
166,908
; 165,247

146,448
149,528
160,008
159,987

1,403
1,718
1,990
1,316

3,570
1,953
2,560
2,965

19,300 35,860
19,300 35,860
19,300 35,860
19,300 35,860

96,351 86,400 295,345 95,595 49,756
97,550 90,450 311,645 95,295 49,356
100,150 92,170 318,965 93,595 49,006
101,400 96,215 332,065 95,815 49,606

66,817
68,507
68,227
69,127

* For actual amounts see "Paper delivered to Federal Reserve agent," on p. 317.

5,554
4,628
5,340
4,742

Total.

12,327
17,295
14,988
13,354

93,167
102,742
97,579
102,890

17,984 69,503
17,984 67,930
17,484 65,923
17,484 76,153

786,111
773,537
780,030
806,760

43,322
45,497
45,615
48,565

189,134
182,734
182,834
173,754

2,011,357
2,023,225
2,066,217
2,070,991

MARCH,, 1920.

FEDERAL RESERVE BULLETIN.

319

CONDITION OF MEMBER BANKS IN SELECTED CITIES.
For the period between January 16 and
February 13 reports from over 800 member
banks in leading cities indicate a continuous
decline, totaling about 162 millions, in United
States securities held. United States bonds,
including Liberty bonds but exclusive of
circulation bonds, show a decline during the
period from 622.6 to 594.5 millions, Victory
notes, a decline from 226.1 to 212.1 millions,
and Treasury certificates, largely as the result
of redemptions by the Government on or
before maturity, a decline from 815.9 to 695.9
millions. Loans secured by Government war
obligations (less rediscounts) show a decrease
from 1,002.2 to 922.4 millions. Of the total
amount of these loans held at the more recent
date, 639.0 millions, or 69.3 per cent, was
secured by Liberty bonds, 264.2 millions, or
28.6 per cent, by Victory notes, and 19.2
millions, or 2.1 per cent, by Treasury certificates, compared with 692.9 millions of paper
secured by Liberty bonds, 292.4 millions of
paper secured by Victory notes, and 16.9
millions of paper secured by Treasury certificates held four weeks previous.
Loans secured by stocks and bonds show
continuous reduction from 3,370.1 to 3,232.4
millions, though it should be noted that
liquidation of these loans is limited almost
entirely to New York City. As against the
considerable reduction in these loans and in
loans secured by United States securities, all
other loans and investments (exclusive of
rediscounts with Federal Reserve Banks)
show a steady and fairly uniform increase from
9,589. 7 to 9,776.9 millions.
War paper rediscounted with and held by
Federal Reserve Banks for reporting member
banks declined from 299.8 to 280.5 millions,
while Federal Reserve Bank holdings of other
paper rediscounted by reporting members
increased from 656.3 to 736.9 millions. In
addition, the Federal Reserve Banks show an
increase from 801.3 millions to 965.5 millions
in the total of collateral notes held under
discount for reporting member banks. Of
the latter total, all but 3.5 millions was war
paper. During the same period the total
amount of war paper held by Federal Reserve




Banks under discount for reporting member
banks increased from 1,095.5 to 1,242.5 millions.
These amounts represent about 81 and 85
per cent of the total amounts of war paper
held on the respective dates by the Federal
Reserve Banks. The amount of other paper
held under discount for reporting member
banks by the Federal Reserve Banks went
up from 661.9 to 740.4 millions, or from 88 to
90 per cent of the total paper of this class held.
The total amount of paper held under discount
for reporting members shows an increase for
the four weeks from 1,757.4 to 1,982.9 millions, or from 83.7 to 86.5 per cent of the total
discounts held by the Federal Reserve Banks
on the respective dates.
Total loans and investments, exclusive of
rediscounts with the Federal Reserve Banks,
show a falling off for the period of 191.8 millions, and an even larger decrease for the
member banks in New York City. This decrease is, however, more than fully offset by
an increase in bills discounted and rediscounted
with Federal Reserve Banks.
Redemption of Treasury certificates and
Government expenses considerably in excess
of revenues account for the net withdrawal
during the period of 266.3 millions of Government deposits, the amount of 156.8 millions
being the lowest Friday night balance carried
with reporting banks by the Government
since the beginning of last year. Other
demand deposits (net), in keeping with the
reduction in the banks' loan accounts, show
a decline of 189.3 millions, a larger reduction
at the banks in Federal Reserve Bank and
branch cities being offset in part by the increase shown for country banks located outside
Federal Reserve Bank and branch centers.
Gains of time deposits aggregated 34.6 millions, notwithstanding a loss of 20.7 millions
under this head shown for the banks in New
York City.
|gg
Reserve balances with the Federal Reserve
Banks, largely as the result of large withdrawals of Government deposits, declined 75.6
millions, while cash in vault shows an increase
of about 6 millions.

320

MARCH, 1020.

FEDERAL RESERVE BULLETIN.

Principal resource and liability items of member banks in leading cities, including member banks located in Federal Reserve
Bank cities and in Federal Reserve branch cities, as at close of business on Fridays from Jan. 23 to Feb. 13, 1920.
1. ALL REPORTING MEMBER BANKS.
[In thousands of dollars.]
New

York

Number of reporting i
banks:
i
112
46
Jan. 23
!!
112
Jan. 30
112
Feb. 6
112
Feb. 13
46
United States bonds to |
secure circulation:
•
13,011
48,887
Jan. 23
13,061
48,887
Jan. 30
48,887
Feb. 6.
! 13,011
48,637
Feb. 13
! 13,011
Other United States !
bonds, including Lib- j
erty bonds:
i
Jan. 23
! 14,231 254,771
Jan. 30
! 14,377 247,721
Feb. 6
1 14,399 242,467
Feb. 13
! 14,606 I 239,734
United States Victory I
notes:
i
7,715 I 85,508
Jan. 23
i
7,664 ! 81,677
Jan. 30
;
7,706
82,147
Feb. 6
!
7,855 ! 83,282
Feb. 13
!
United States certificates i
of indebtedness:
40,829 297,800
Jan. 23
40,234 290,829
Jan. 30
Feb. 6
: 33,354 305,754
Feb. 13
i 31,766 289,283
Total United States se- :
curities owned:
;
75,786
Jan. 23
Jan. 30
! 75,336 669,114
68,470 679,255
Feb. 6
67,238 660,936
Feb. 13
Loans secured by United
States bonds, Victory
notes, and certificates: \
Jan. 23
| 47,935 518,079
Jan. 30
j 39,753 498,252
39,553 476,307
Feb. 6
j
39,941 462,764
Feb. 13
Loans secured by stocks
and bonds other than
United States securi- i
ties:
I
Jan. 23
ij 201,755 1,505,992
198,040 1,475,350
Jan. 30
201,956 1,437,478
Feb.G
Feb. 13
i 196,263 1,377,313
All other loans and in- i
vestments:
!
683,057 3,367,708
Jan. 23
669,094 3,419,985
Jan. 30
685,974 3,403,952
Feb. 6
669,812 3,425.604
Feb. 13
Total loans and investments:
,008,533 6,078,745
Jan. 23
982,223 6,062,701
Jan. 30
995,953 5,996,992
Feb.6
973,254 5,926,617
Feb. 13
Reserve balances with
Federal Reserve Bank:
79,010 668,284
Jan. 23
79,066 673,982
Jan. 30
76,002 679,469
Feb. 6
81.279 665,422
Feb. 13
Cash in vault:
23,176 125,940
Jan. 23
19,262 ! 120,505
Jan. 30
20,395 | 112,188
Feb. 6
25,152 | 129,046
Feb. 13
Net demand deposits on
which reserve is computed:
799,974 5,123,217
Jan. 23
786,060 5,118,606
Jan. 30
789,577 5,110,832
Feb. 6
795,641 5,112,686
Feb. 13




Atlanta.

Phila!deIphia.

Ohto

San
Minne- Kansas Dallas. FranCity.
cisco.

* o - Louis. apolis.

107
107
107
107

35

804
804
804
804

11,097
11,097
11,097
11,097

41,841
41,841
41,841
41,842

26,296
26,296
26,296
26,551

14,015
14,015
14,015
14,015

20,877
20,926
20,927
20,929

17,178
17,178
17,177
17,177

7,120
7,120
7,170
7,170

29,542
27,817
27,697
27,311

61,069
61,467
60,879
62,185

36,148
35,063
35,126
35,109

28,347
25,734
30,021
28,915

58,978 14,324
60,009 14,729
14,497
59,108 14,250

10,651
10,549
10,760
10,566

12,265
11,936
11,895
11,511

24,077
23,979
23,697
23,262

10,778
10,379
10,052
10,032

7,529
9,334
7,582
7,337

55,538
52,974
51,545
49,900

57,421
57,780
55,078
54,128

26,542
25,748
22,428
21,338

34,714
33,789
31,679
26,986

108,442
103,824
102,234
99,819

184,408
185,067
181,495
181,417

99,764
97,486
93,902
93,030

85,857
84,580
80,542
79,818

87,213
85,388
84,494
84,659

205,603
202,115
207,048
206,222

43,031
41,294
40,391
39,956

Total.

2,512
2,467
2,454
2,446

14,464
14,564
14,664
14,627

19,573
19.573
19,573
19,573

34,605
34,605
34,605
34,605

268,964
269,163
269,263
269,234

25,301 18,445
22,356 18,604
22,122 18,237
22,152 18,335

61,736
62,164
62,738
62,248

613,543
600,590
597,942
594,519

6,756
6,398
5,647
5,310

3,734
3,565
3,924
4,081

13,387
13,223
12,535
12,839

221,840
216,404
212,317
212,057

118,111 22,622 I 15,879
118,710 21,928 15,752
106,674 21,407 14,818
106,169 19,801 13,222

15,536
15,912
11,236
10,779

29,967
29,981
31,084
29,541

56,528
54,856
46,011
42,982

771,487
758,493
731,068
695,895

84,605
82,872
83,297
77,253

240,997
240,939
226,991
226,162

62,057 71,719 166,256 1,875,834
59.230 71,723 164,848 1,844,650
53,669 72,818 155,889 1,810,590
52,868 71,530 152,674 1,771,705

35,798
34,769
34,236
33,199

23,556
22,771
22,116
22,103

97,210
96,310
97,399
97,464

30,572 | 15,217 20,782
31,486 i 15,382 19,769
30,023 14,985 19,720
29,396 15,100 19,559

6,928
7,508
7,953
7,088

347,641
343,161
344,347
345,771

110,649
107,665
107,302
106,505

59,424
59,334
63,172
59,700

481,639
499,306
499,951
498,593

! 160,102 \ 29,610 75,454
1159,921 i 29,921 75,217
1160,024 i 29,334 76,122
1160,838 ! 28,404 76,246

34,075
33,972
34,139
34,846

140,885
141.220
141,106
141,697

3,352,829
3,325,222
3,301,979
3,232,398

512,977
518,787
526,705
538,424

814,233
818,520
823,363
833,376

350,545
350,510
350,308
349,736

363,057
372,940
362,176
366,021

1,411,722
1,413,467
1,440,168
1,462,460

1254,671
252,112
256,820
256,783

469,170
471,878
472,891
478,249

222,590
223,699
227,058
229,337

832,178
828,487
836,963
836,319

9,604,051
9,671,004
9,715,748
9,776,945

912,879
909,306
916,529
924,283

1,433,495
1,432,136
1,433,699
1,445,223

596,756
590,430
585,748
582,170

530,642
537,917
530,761
525,077

2,231,568
2,250,022
2,264,509
2,284,679

571,489
581,255
576,785
576,432

335,660
333,303
336,341
333,691

627,463
626,094
622,402
626,922

335,312
336,902
341,968
342,801

1,171,335
1,166,194
1,165,407
1,162,014

15,833,877
15,808,483
15,767,094
15,703,463

70,439
62,062
65,659
59,838

93,108
93,475
89,711
90,228

I 38.076 35,135
i 36,919 35,399
39,205 35,475
j 39,727 35,938

202,590
199,124
204,055
199,469

48,516
43,198
44,400
48,060

4,548
4,488
4,287
4,146

58,672
58,323
57,368
55,374

1322,143
331,525
329,370
330,824

36,162
i 35,888
35,202
33,404

32,016 1,001,163
31,639
967,607
31,449
938,777
31,324
922,415

I

15,929 | 33,380 17,623 13,867
15,644
31,148 16,349 13,083
15,358 | 31,824 16,873 12,884
17,916 ! 32,516 17,065 13,105

664,272 ! 858,398 365,678
654,286; 855,135 362,001
659,392 | 850,068 !1365,043
665,604 i 864,758 367,859

320,287
311,624
313,048
312,228

23,763 56,834
23,338 47,440
I 23,853 55,373
j 23,025 49,324

29,674 79,361 1,424,790
35,643 76,850 1,406,496
27,023 76,934 1,417,159
27,206 78,855 1,398,371

66,797 10,660 j 9,17115,248 10,649 30,371
372,811
66,703 10,087 j 8,859 15,480 11,423 28,966 i 357,509
65,905 10,242 i 8,092 15,419 9,966 28,072 I 347,218
70,521 11,021 I 8,61615,284 11,747 31,290
383,279

1,432,187
1,446,756
, ,
1451457
1,451,457
1,472,176

373,566
368,850
8,85
365597
365,597
'375,477

1239,904
1235,710
135,710
234,632
234632
'233,171

469,745
464,821
469,811
472,119

255,037
250,688
254,087
255,177

634,787
622,816
614,291
624,181

11,537,052
11,477,353
11,477,835
11,551,077

MARCH,

1920.

321

FEDERAL RESERVE BULLETIN.

Principal resource and liability items of member banks in leading cities, including member banks located in Federal Reserve
Bank cities and in Federal Reserve branch cities, as at close of business on Fridays from Jan. 2S to Feb. lo, 1920—Contd.
1. ALL REPORTING MEMBER BANKS—Continued.
[In thousands of dollars.]
New
York,

Philadelphia

Cleveland.

RichAtmond. lanta.

409,085
392,078
395,310
384,902

26,043
26,034
25,720
26,070

335,671
337,095
343,195
354,884

99,671
99,974
98,514
99,382

30,448
27,757
12,099
7,882

173,055 i 28,393
155,787 I 25,550
99,266 i 9,485
72,482
5,899

23,569
21,126
19,756
15,329

24,263
34,372
40,541
31,797

365,255 67, 601
433,238 70,678
428,815 79,615
440, 912 85,246

66,566
59,424
66,479
75,085

Boston.

Time deposits:
Jan. 23
Jan. 30
Feb. 6
Feb. 13
Government deposits:
Jan. 23
Jan. 30
Feb. 6
Feb. 13
Bills payable with Federal Reserve Bank:
Secured by United
States war obligationsJan. 23
Jan. 30
Feb. 6
Feb. 13
All otherJan. 23...
Jan. 30
Feb.6
Feb. 13...
Bills rediscounted with
Federal Reserve Bank:
Secured by United
States war obligationsJan. 23
Jan. 30
Feb.6
Feb. 13
All otherJan. 23
Jan. 30
Feb.6
Fob. 13

131,938
132,505
133,595
133,275

125,581
126,382
(129,733
1130,434

6,450 i 7,661
5,776
7,096
3,464 i 6,324
3,314 i 3,817

42,370
43,864
39,871

47, 408
44,991
43,409
41,918

150
150

300
750
730
500

160
125
125
125

Mil

574,716
578,577
583,957
585,611

116,313
:117; 768
118,458
Ills, 705

103,620
102,234
112,589
121,141

Total.

2,477,554
2,471,569
2,494,912
2,500,862

89,137
88,481
91,564
92,763

40,954
41,925
42,086
42,878

467,489
469.396
470', 689
469,924

4,727
3,248
4,255 , 2,709
1,155
3,552
587 i 3,056

2,444
2,239
5,490
4.790

12,032
10,073
13,637
11,422

343,710
308,823
205,168
156,814

20.930 13,211 25,386
30', 282 13,246 20,455
31.705 15,487 19,481
31, 451 15.166 17,040

23,077
25,088
23,680
22,570

32,046
34,919
38,397
39,788

845,092
911,297
944,032
961,985

3,706
3,950
4,509
2,675

02
300

100
100
S5
85

4,328
5,525
5,699
3,535

294,4*30
286,069
281, 936
280,506
080,189
631,289
663.048

41,233 10,450
37.095
9,360
25.484
5,456
24^356 ; 3.880

60,9,56
61,354
62,091
62,034

San
Francisco.

150
100
150

51,515
49,746
48,473
47,567

115,407
116,886
115,648
111,951

80,304
77,921
76,028
76,738

10,099
8,934
7,597
8,226

9,714
8,925
7,759
7,170

2,718
3,137
3,522
3,506

6,373
6,791
7,373
10,020

7,242
6,304
8,077
8,507

6,506
2,610
2,870
'2, £34

2,669
2,917
3,063
2,825

1,870
1,825
1,479
1,322

36,191
42,983
46,375
76,167

269,234
208,596
207,688
243,690

36,427
32,623
39,304
43,191

36,244
37,174
40,514
38,035

16,278
16,701
18,639
19,160

15,091
21,564
22,325
23,036

113,412
116,064
122,498
131,813

40,544
38,705
42,149
40,710

37,845
37; 081
39,922
37,259

43,721
41,331
42,728
41,841

0,847 28,355
0,154 32,313
5 868 35,038
5,472 ! :5O,514

2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES.
Number of reporting
banks:
Jan. 23
Jan.30
Feb. 6
Feb. 13
United States bonds to
secure circulation:
Jan. 23
Jan.30
Feb.6
Feb. 13
Other United States
bonds, including Liberty bonds:
Jan. 23
Jan.30
Feb.6
,
Feb. 13
,
United States Victory
notes:
Jan. 23
Jan. 30
Feb.6
Feb. 13
United States certificates
of indebtedness:
Jan. 23
Jan. 30
Feb.6
Feb. 13
Total United States securities owned:
Jan. 23
Jan. 30
Feb.6
Feb. 13




20
20
20
20

6
6
6
6

270
270
270
276

3,081
3,081
3,031
3,031

39,190
39,190
39,190
38,940

7,087
7,087
7,087
7,087

3,631
3,631
3,631
3,631

2,832
2,832
2,832
2,832

3,100
3,100
3,100
3,100

1,439
1,438
1,438
1,438

j 10,548
I 10,548
I 10,547
' 10,547

2,791
2,791
2,791
2,791

4,850
4.850
4; 850
4,813

4,560
4,560
4,560
4,560

•18,500
18,500
18,500
18,500

101, 609
101,608
101,557
101,270

6,061
6,006
5,968
6,218

224,106
217,023
211,.549
208,731

22,180
20,562
20,450
20,143

8,378
8,387
8,345
8,403

5,595
5,041
4,914
4,960

1,445
1,518
1,526
1,548

25.286
25; 456
24,767
24,945

5,396
5,603
5,489
5,243

1,782
1,841
1,840
1.698

10,299
7,507
7,586
7,449

3,198
3,365
3,354
3,279

37,204
36,975
37,084
36,874

350,930
339,284
332,872
329,491

965
928

870

75,298
71,611
72,075
72, 823

8,901
8,623
8,664
8,363

4,606
4,583
4,317
4,363

493
463
303
328

558
553
550
547

18,311
16,352
15,772
15,361

1,532
1.584
1J493
1.305

235
235
228
229

26,918
26,053
20,426
20,025

280,142
273,503
290,494
274,921

52,114
49,556
48,238
46,572

10,616
10, 988
11,518

2,024
1,982
2,089
2,079

9,636
9,443
7,790
5,158

49,055
48,264
41,475
38,705

19,227
18,728
18,245
16,857

6,991
6,971
6,787
6,624

37,025
36,068
30,305
30,144

618,736
601,327
613,308
595,415

90,282
85,828
84,439

25,453
27,217
27,281
27,915

10,944
10,318
10,138
10,199

14,739
14,614
12,966
10,353

94,091
91,510
83,452
80,449

36,463

82,165

36,703 11,799
11,838

4,043
3,649
2,961
2, 82S

1,023

902
948
1,143

4,736 I
4,772 •
4,108
4,485

4,215 I 19,057 i 26,403
4,223 j 18,950 1 24,972
2,683 18,689 21,435
2,680 I 17,711 20,165

120,701
114,255
112,299
112,645
504,620
493,261
489,339
463,015

23,407 27,838 80,843 ! 1,077,8(50
20,229 j 27,777 85.219 I 1,048,408

35,774 11,646 18,080 ! 27,551 j 81i127 I 1,036,067
33.952 11,342 17,770 i 20,093 1 80,024 ! 1,006,421

322

MARCH, 1920.

FEDERAL RESERVE BULLETIN.

Principal resource and liability items of member banks in leading cities, including member banlcs located in Federal Reserve
Bank cities and in Federal Reserve branch cities, as at close of business on Fridays from Jan. 28 to Feb. 13, 1920—Contd.
2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES—Continued.
[In thousands of dollars.]
Boston.
Loans secured by United
States bonds, Victory
notes, and certificates:
Jan.23
Jan. 30
Feb. 6
Feb. 13
Loans secured by stocks
and bonds, other than
United States securities:
Jan. 23
Jan. 30
Feb. 6
Feb. 13
AH other loans and investments:
Jan. 23
Jan. 30
Feb. 6
Feb. 13
Total loans and investments:
Jan. 23
Jan. 30
Feb. 6
Feb. 13
Reserve balances with
Federal Reserve Bank:
Jan. 23
Jan. 30
Feb. 6
Feb. 13
Cash in vault:
Jan. 23
Jan. 30
Feb. 6
Feb. 13
Net demand deposits on
which reserve is computed:
Jan. 23
Jan. 30....
Feb. 6
Feb. 13
Time deposits:
Jan. 23
Jan. 30
Feb. 6
Feb. 13
Government deposits:
Jan. 23
Jan. 30
Feb. 6
Feb. 13
Bills payable with Federal Reserve Bank:
Secured by United
8tates war obligationsJan. 23
Jan. 30
Feb. 6....
Feb. 13
All otherJan. 23
Jan. 30
Feb. 6
Feb. 13
Bill! rediscounted with
Federal Reserve Bank:
Secured by United
States war obligationsJan. 23
Jan. 30
Feb. 6
Feb. 13
All otherJan. 23
Jan. 30
Feb.6
Feb. 13




New
Phila- CleveYork. delphia. land.

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

5,959
5,638
5,147
5,046

67,836
66,728
67,545
66,886

22,129
22,857
21,330
21,108

7,034
7,077
7,151

381,021
386,777
386,731
385,112

i25,031
124,234
124,349
125,134

66,656
65,887
64,783
66,439

55,817
56,657
58,891
58,640

817,430
823,266
835,785
850,880

198,920
206,884
205,859
205,466

113,394
111,426
111,622
112,926

161,076 58,588 386,851 6,008,037
161,817 58,407 381,201 6,059,915
159,179 59,417 389,870 6,090,209
163,963 57,792 387,502 6,119,324

403,353
403,699
406,735
405,303

104,225
102,678
101,324
102,669

83,383
83,943
84,081
81,190

1,360,378
1,368,281
1,373,513
1,383,327

382,783
390,438
387,312
385,660

147,360
145,578
145,547
145,783

224,427 98,541 555,943 10,319,308
221,825 99,031 548,030 L0,283,931
217,303 99,387 552,304 L0,243,666
221,645 97,802 548,427 10,165,033

63,995
55,704
58,866
52,779

26,346
27,971
23,903
25,044

6,885
5,942
6,603
8,038

6,108
5,372
5,771
6,542

143,932
138,949
145,557
138,845

113,097 12,429
107,881 12,315
110,235 11,866
115,177 14,282

8,385
8,039
7,961
8,549

2,094
1,797
1,929
1,786

2,516
2,114
2,167
1,972

38,210
37,828
37,510
38,097

489,099
470,308
448,714
435,582

81,254
80,015
76,549
75,938

22,220
22,006
21,372
21,549

11,784
11,577
11,364
10,766

155,316 ,348,102
153,830 ,321,378
155,661 ,281,081
150,454 1,223,737

186,331
182,757
187,579
186,591

125,686
120,671
123,515
124,129

14,841
14,896
15,039
15,265

473,925
457,290
476,228
458,989

2,998,489
3,050,837
3,034,370
3,054,484

446,897
452,438
459,638
470,533

229,994
233,805
234,567
231,710

699,725
675,540
690,482
668,782

:,454,426
5,443,850
5,377,473
5,309,218

804,764
801,038
808,205
815,227

62,970
64,065
61,061
64,590

628,730
633,935
639,901
626,485

14,111
10,841
14,213
15,750

33,459
28,352
28,288
29,195

Total.

u , CWJO

8,027
8,193
7,934
7,815

6,830
6,844
6,919

14,140 33,114
14,121 32,935
14,345 33,125
13,700 33,221

1,651
2,242
1,849
1,827

16,688
16,700
16,658
15,843

766,936
741,460
713,669
698,246

10,464 65,561 2,466,475
10,605 64,910 2,434,148
10,570 64,649 2,403,721
11,490 65,058 2,341,042

34,653 11,674
30,331 11,427
31,915 12,144
35,258 10,871

21,482
11,770
18,823
15,355

2,930
2,848
2,495
2,860

4,051
4,363
4,190
4,031

1,976
1,999
1,907
2,295

10,557
10,305
9,827
9,874

216,148
205,685
209,476
220,166

256,632 106,934 167,776
987,676 254,243 103,353 163,559
986,529 250,144 105,214 164,079
985,018 257,468 102,791 165,261

77,658
74,685
74,491
73,111

287,462
277,028
272,162
272,474

8,064,140
8,024,722
8,018,570
8,022,297

12,094
12,057
11,759
12,719

3,842
3,885
3,903
3,922

209,146
209,727
210,411
210,101

1,162,283
1,149,453
1,159.684
1,153,365

5,792
5,355
5,176
5,493

I 986,319

9,796 35,021
7,125 32,809
7,290 32,896
7,202 35,652

1,051,592
1,025,400
1,044,730
1,026,661

610,634
601,635
602,631
609,190

4,660,903
4,665,394
4,663,058
4,647,471

576,908
566,919
571,390
576,235

218,872
217,288
214,436
219,198

63,563
62,925
62,879
62,751

50,479
50,017
51,557
51,329

42,735
43,496
42,872
42,058

319,187
301,906
304,811
298,216

16,492
16,365
16,486
16,795

163,203
163,662
167,792
167,398

20,512
20,429
20,422
20,669

19,781
19,764
20,080
20,095

25,693
23,473
9,985
6,439

166,825 26,710
150,180 24,035
96,830 7,982
70, &31 4,707

5,467
5,059
3,811
2,690

1,316
1 177
969
1,606

731
659
749
601

22,210
19,989
12,692
12,121

8,410
7,557
4,492
3,210

2,310
2,078
535
266

2,194
1,741
2,294
1,973

1,095
986
2,454
2,191

7,691
6,888
10,924
9,027

270,652
243,822
153,717
115,662

20,129
30,048
35,189
26,055

329,243 63,418
394,164 66,075
389,302 75,301
401,394 79,050

10,925
13,405
12,700
19,898

6,169
5,409
5,965
5,950

4,374
3,227
3,352
1,687

46,293
46,617
53,450
56,154

20,592
23,519
24,931
24,496

5,205
5,270
5,901
6,226

12,583
9,288
7,703
7,230

16,367
16,567
16,000
16,000

17,621
20,325
21,751
23,717

552,91\>
633,914
651,545
667,857

262,372 70,732 22,187
264,453 71,290 22,419
266,952 71,761 22,435
267,156 71,855 22,381

285
285
500
500

45,149
43,523
42,395
42,171

111,229
112,162
110,131
106,911

79,959
77,576
75,364
76,074

5,643
5,208
4.517
4,449

2,547
2,317
2,133
1,983

485
678
426
404

2,560
3,191
3,615
6,085

4,061
3,349
5,452
5,595

6,131
2,245
2,525
2,309

922
1,147
1,045

33,918
41,164
44,923
74,763

258,925
198,247
198,313
235,091

35,398
32,038
38,388
42,298

26,265
26,542
27,152
25,246

2,373
2,797
3,371
3,309

2,137
2,678
2,594
2,461

91,863
94,788
101,563
109,480

27,415
26,035
29,788
29,038

30,165
29,803
30,015
27,534

19,401
19,360
20,655
19,020

285
285
500
500

43
43
32
26

807
530
449

259,684
252,021
248,267
247,501

811 18,692
825 21,555
673 23,471
638 24,692

547,363
495,832
520,906
593,570

323

FEDERAL RESERVE BULLETIN.

MARCH, 1920.

Principal resource and liability items of member banks in leading cities, including member banks located in Federal Reserve
Bank cities and in Federal Reserve branch cities, as at close of business on Fridays from Jan. 23 to Feb. 13,1920—Contd.
3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES.
[In thousands of dollars.]
CleveKansas
RichSan
New
Dallas Francisco
land
mond Atlanta Chicago St. Louis City
York
district; district. 2 districts district.* districts district." district.? district.* district.9

Number of reporting banks:
Jan. 23
Jan. 30
Feb. 6
Feb. 13
United States bonds to secure circulation:
Jan. 23
Jan. 30
Feb.6
Feb. 13
Other United States bonds, including
Liberty bonds:
Jan. 23
Jan. 30
Feb. 6
Feb. 13
United States Victory notes:
Jan. 23
Jan. 30
:
Feb.6
Feb. 13
United States certificates of indebtedness:
Jan. 23
Jan. 30
Feb.6
Feb. 13
Total United States securities owned:
Jan. 23
Jan. 30
Feb.6
Feb. 13
Loans secured by United States bonds,
Victory notes, and certificates:
Jan. 23
Jan. 30
Feb.6
Feb. 13
Loans secured by stocks and bonds, other
than United States securities:
Jan. 23
Jan. 30
Feb.6
Feb. 13
All other loans and investments:
Jan. 23
Jan. 30
Feb.6
Feb. 13
Total loans and investments:
Jan. 23
Jan. 30
Teb.6
Feb. 13
Reserve balances with Federal Reserve
Banks:
Jan. 23
Jan. 30
Feb.6
Feb. 13
Cash in vault:
Jan. 23
Jan. 30
Feb.6
Feb. 13
Net demand deposits on which reserve is
computed:
Jan. 23
Jan. 30
Feb.6
Feb. 13
Time deposits:
Jan. 23
Jan. 30
Feb.6
Feb. 13
Government deposits:
Jan. 23
Jan. 3 0 . . . . .
Feb.6
Feb. 13..
>




40
40
40
40

19
19
19
19

24
24
24
24

12
12
12
12

24,897
24,897
24,897
24,897

5,608
5,608
5,608
5,608

6,915
6,915
6,915
6,915

1*905
1,905
1,905
1,905

7,736
7,779
7,765
8,002

41,334
41,564
41,175
42,383

9,084
8,960
8,963
9,022

23,271
20,438
23,944
23,573

3,315
3,164
3,107
2,715

15,571
15,615
15,520
15,099

3,605
3,546
3,478
3,422

7,857
7,664
6,045
5,920

38,911
37,571
34,362
33,999

20,507
20,206
18,516
18,236

18
18
18
18

Total.

18
18
18
18

11
11
11
11

42
42
42
42

193
193
193
193

5,280
5,280
5,280
5,280

4,187
4,187
4,187
4,187

7,108
7,108
7,108
7,108

13,305
13,305
13,305
13,305

70,804
70,804
70,804
70,804

15,672
15,708
15,784
15,805

8,077
8,211
8,105
8,091

6,070
5,947
5,923
6,136

7,553
7,627
7,621
7,630

21,146
21,804
22,464
22,179

139,943
138,038
141,744
142,821

5,366
7,155
5,494
5,204

14,588
14,567
14,532
14,502

2,876
2,772
2,670
2,720

644
671
653
494

1,364
1,374
1,461
1,442

7,998
7,813
7,799
7,726

55,327
56,677
54,714
53,324

11,350
10,719
8,342
7,099

19,738
19,399
18,933
17,177

54,662
54,827
49,964
52,642

3,314
3,109
3,022
2,789

5,012
5,227
3,736
3,378

5,396
5,499
6,403
5,853

27,831
27,593
22,187
20,423

174,071
171,608
152,994
149,280

120,713
119,647
115,954
116,378

29,647
28,833
26,391
25,151

55,290
53,907
55,286
52,869

86,827
87,007
82,185
84,854

19,547
19,372
19,077
18,880

15,913
16,032
14,499
14,195

21,421
21,608
22,593
22,033

70,280
70,515
65,755
63,633

440,145
437,127
420,256
416,229

6,746
6,726
6,788
6,571

53,492
51,751
51,618
51,459

9,922
9,301
9,024
9,230

12,260
12,082
11,948
11,854

12,836
12,793
12,606
13,785

7,368
7,542
7,605
7,240

9,705
8,776
8,593

1,745
1,889
1,861
1,858

14,457
13,942
13,931
14,616

128,531
124,802
123,974
125,301

40,589
40,838
45,522
45,558

161,743
161,121
159,964
159,786

33,828
33,501
32,689
32,579

40,100
39,834
42,423
38,965

53,336
56,390
57,736
57,405

32,255
32,861
32,860
32,950

21,646
21,349
21,918
21,941

14,979
14,819
14,575
14,727

69,547
70,506
70,579
71,146

468,023
471,219
478,266
475,057

127,084
125,638
123,969
122,945

428,109
427,809
431,616
444,489

102,029
104,369
102,583
103,333

225,574
233,835
223,972
227,217

289,490
293,885
299,851
302,763

107,157
109,036
107,694
109,330

150,205
151,630
153,364
154,416

66,661
68,748
68,923
71,705

415,311
417,206
415,873
416,796

1,911,620
1,932,156
1,927,845
1,952,994

194,926
193,408
194,795
193,310

764,057
760,328
759,152
772,112

175,426
176,004
170,687
170,293

333,224
339,658
333,629
330,905

442,489
450,075
452,378
458,807

166,327
168,811
167,236
168,400

197,469
197,787
198,374
199,240

104,806
107,064
107,952
110,323

11,216
11,763
12,975
12,205

49,801
48,807
48,709
47,733

12,193
12,283
13,273
12,732

22,922
23,094
22,695
21,971

29,057
29,307
28,754
29,312

13,030
11,803
11,725
11,867

16,942
17,355
16,819
15,192

7,992
8,452
8,575
8,303

40,828
40,783
40,579
39,540

203,981
203,647
204,104
198,855

2,701
2,575
2,723
3,034

15,078
13,996
14,590
14,307

4,957
4,907
4,314
4,802

7,577
7,331
7,149
7,120

14,360
14,052
13,800
16,416

4,079
4,003
4,260
4,817

5,360
5,240
5,379
5,320

2,783
3,099
2,694
3,224

17,872
16,834
16,435
19,105

74,767
72,037
71,344
78,145

127,198
126,715
127,194
129,983

465,642
465,070
461,807
463,103

111,056
110,409
109,701
112,060

209,792
204,446
205,022
202,558

204,623
212,281
211,391
226,053

106,541
103,844
104,643
106,837

134,894
133,583
139,057
139,185

72,139
71,756
72,296
73,519

316,456
315,172
312,240
319,007

1,748,341
1,743,276
1,743,351
1,772,305

35,066
35,137
35,095
34,234

100,652
101,152
102,540
113,392

19,799
19,473
17,353
17,958

69,367
69,850
72,344
72,790

201,894
203,655
205,848
207,010

36,962
37,811
38,054
38,251

45,100
44,925
46,501
46,320

19,226
20,064
20,018
20,613

246,665
247,117
247,611
247,416

774,731
779,184
785,364
797,984

15,093
13,523
14,254
11,452

477
418
148
111

12,101
10,891
7,654
7,382

1,998
1,765
960
670

667
601
278
204

577
558
2,226
1,902

3,433
3,088
1,690
1,485

42,959
38,795
33,465
26,863

2,494
2,244
822
490 i

6,119 I
5,707 !
5,433 i
3,167 I

569,595 2,948,319
572,169 2,965,304
566,138 2,950,341
566,191 2,969,581

324

FEDERAL RESERVE BULLETIN.

MARCH, 1920.

Principal resource and liability items of member banks in leading cities, including member banks located in Federal Reserve
Bank cities and in Federal Reserve branch cities, as at close of business on Fridays from Jan. 23 to Feb. 13, 1920—Contd.
3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES—Continued.
[In thousands of dollars.]
CleveRichNew
Kansas Dallas
San
land
mond Atlanta Chicago St. Louis City
York
Francisco
district.1 districts district.3 district.* district.* districts district.* district.* district.*
Bills payable with Federal Reserve Bank:
Secured by United States war obligationsJan. 23... /
Jan. 30
Feb.6
Feb. 13
All otherJan. 23
Jan. 30
Feb. 6
Feb. 13
Bills rediscounted with Federal Reserve
Bank:
Secured by United States war obligationsJan. 23
Jan. 30
Feb. 6
Feb. 13
Ml otherJan. 23
Jan. 30
Feb. 6
Feb. 13
21 Buffalo.

16,046
17,242
16,752
16,464

51,787
42,218
48,403
50,186

300
300
280

35,548
33,967
32,461
32,722

j
|
i
!

40,595
38,270
42,985
47,867

5,886
6,381
6,262
6.393

10 i

1.711
2,017
2,873
2,448

3,479
2; 887
2,681
2,674

5,106
4,912
4,114
3,304

1,717
1,872
2,405
2,489

1,328
1,317
1,313
1,213

2,480
2,269
1,968
2,331

2,492
2,016
1,915
1,926

5,889
6,949
8,749
8,062

8,084
8,304
9,339
9,748

11,654
14,305
15,085
16,790

7,647
6,677
7,926
7,925

12,295
11,806
11,642
10,892

Pittsburgh and Cincinnati.
*4 Baltimore.
New Orleans, Birmingham, Jacksonville, and Nashville.
& Detroit.




21,061
16,348
17,441
14,006

Total.

8,214
6,838
7,704
6,351

4,660
5,616
5,050
4,615

12,711
12,965
15,077
14,392

196,508
179,845
192,135
192,996

3,421
3,665
4,009
2,175

62
300

100
100
85
85

3,893
4,365
4,374
2,260

30
15
14

935
978
909
830

17,773
17,675
17,523
16,457

5,233
4,426
4,325
3,969

7,837
8,787
9,332
9,803

79,295
79,493
84,645
86,085

1,017 i
1,393
1,245
1,154

18,164
16,223
16,332
16,970

s Louisville, Memphis, and Little Rock.
' Omaha and Denver.
s9 El Paso and Houston.
Spokane, Portland, Seattle, Salt Lake City, and Los Angelas.

325

FEDERAL RESERVE BULLETIN.

MARCH, 1920.

IMPORTS AND EXPORTS OF GOLD AND SILVER.
Gold imports into and exports from the United States, distributed by countries.

France
Italy
Netherlands
United Kingdom—England .
Total Europe
Canada
Costa Eica
Honduras
Nicaragua
Panama
Salvador
Mexico.
British West Indies
Cuba
Dominican Republic

Imports.

Exports.

During 10 During 11 During 10 From Jan. From Jan.
days end- days end- days end- 1 to Feb. 1 to Feb.
ing Jan. ing Feb.
ing Jan.
10,1919.
10, 1920.
10,1920.
31,1920.
20,1920.

During 10 During 11 During 10
days end- days end- days end- From Jan. From Jan.
1 to F e b . 1 to F e b .
ing Jan. ing Jan. ing Feb.
10,1920.
10,1919.
31,1920.
20,1920.
10,1920.

$1,238
1,238
10.467,932

11,552

163,168

2,956
86,371

Total South America..

$19,576

942

1,238
942

$5,000

$2,087

20,518

21,756

5,000
230,110

11,298,269 $1,007,161
51,922
3,578
46,147
4,511
280,345
87,902
30,000
71,020
53,267
647,320
415,060
1,608
1,777
1,323

99,769
3,578
1,925
24,929
30,000
40,108

848

Total North and Central America
10,647,362
Argentina
Bolivia
Brazil
Chile
Colombia
Ecuador
British Guiana
Dutch Guiana
Peru
Uruguay
Venezuela

1528,694

207
15,207

$19,576

324
5,496

629,573

11,894,364

200,309

227

1,188

1,415

10,826

3,857
52

15,007
5,548
i8,445

18,445
7,472

23,605

i.28,487

22,550

1,026,402

34,658

27,647

168,902

145,753

215,548

143,519

655,146

9,155

1,284,380

1,272,512

1,912,336

1,427,899

5,304,148

7,950,000 11,500,000

25,050,000

ioo,666

200,000
60,000

180,000

200,000

10,680,337

845,234

""""37," 727"
286,201

1

1,405,141

1,406,627

100,000
200,000
500,000

1,853,000

1,100,000
50,000

1,195,670

27,000,000

3,184,009

135,339
1 100,000 i 50 000
8,310,000 11,700,000

6,930,000

467,572

1,555,234
202,000
560,000

1,812,636
40,000
305,000

9,302,109
1,205,020
3,615,000
1,110,000
7,"i82*756' 'i,"485,"3*ii' 11,268,342
5,706,301
2,000,000

3 157,600 11,499,990 3,642,947
150,614
30,389
37,727

4,632,002
16,000

654,000
1,250,000
1,110,000
143,600

150,614
30,389

$1,486

1 000

5,600,000
4,938
218,348
28,808
40,470
6 500
126^356

Total Asia

1
2

68,954

1,695,788

1

New Zealand
Philippine Islands
Portuguese Africa
Total, all countries

2,087

16,000

42,152
31,737

$136,598

1,000

2,106,846

China
British India
Straits Settlements
Dutch East Indies
Hongkong
Japan

$68,954

32,206,772

j

61,192

..'.

-.

1

12,303,752 2,635,610 11,365,112 21,724,413 16,839,800 2 64,656,673

4,590,636

Includes: Ore and base bullion, $1,863,000: bullion refined, $440,000; United States coin, $1,000: foreign coin, $10,000,000.
Includes: Domestic exports—United States mint or assay office bars, $9,196,000; bullion refined, $155,000; coin, $55,291,000 Foreign e x p o r t s Coin, $15,000.
Excess of gold exports over imports since Jan. 1,1920, $52,353,000. Excess of gold imports over exports sinice Aug. 1, 1914, $727,402,000.
Excess of gold exports over imports since June 10, 1919, $373,617,000.




326

FEDERAL RESERVE BULLETIN.

Silver imports into and exports from the United States, distributed by countries.
Imports.

Exports.

During 10 During 11 During 10 From Jan. From Jan.
days end- days end- days end- 1 to Feb. 1 to Feb.
ing Jan. ing Jan. ing Feb.
10,1920.
10,1919.
20,1920.
31,1920.
10,1920.

During 10 During 11 During 10 From Jan. From Jan.
days end- days end- days end- 1 to Feb. 1 to Feb.
ing Jan. ing Jan. ing Feb.
10,1920.
10,1919.
31,1920.
20,1920.
10,1920.

Denmark
France
. .
Netherlands
Norway
Sweden
United Kingdom—England .

8234

234

Total Europe
British Honduras
Canada
Costa Rica
Guatemala
Honduras . . .
Nicaragua
Panama
Salvador
Mexico
British West Indies
Cuba
Dominican Republic

225
128,862

$7,545
205,198

! -

1 489
3,358
17,761
16,340
28,136
10,025
1,370,237 2,072,758

$7,664
234

$3,823

3,655

3 ktt

7,362

$10,000

. . . '..1
!
$42,841

$52,841

255,805
48,675
4,041,787

11,319

11,553

11,185

10,000

42,841

52,841

5,813,906

268,589

91,430

2,362,756

356,655

263,316
645
3,480
1,403
12,719
i89,467
2,226,456

16,698
553,055 $1,960,701
732

7,770
710,635
645
17,480
344,592
85,220
16,340
917,697
7,826,614

455,047
157,501
44,038
41,566
5,595,612

19,613

20,688

31

5,873

Total North and Cen1,548,678
tral America

2,319,160

2,697,486

9,946,606

6,884,937

113,584
87,404

7,106
102,311
649

120,690
209,930
20,481

10.797
14,408

137,511

274,570

437,080

1,795,236

343
1,237,108
201

169 132

475,558

547,146

2,146,337

1,262,857

Rnlivia.

Chile

OnloTnlyjft

Total South America..

16,060
15 561

$66,183
1,401,456

i

$7,664

21,500

259,809

32,300

211,697

89,800
400,000

135 317 ' fifift 01»
1,800
5 000
14 000
43,000

9,000

i3 000
2,255,010

10,000 |
50,000 j

291,747

521,586

3r571,269

97,850
2,100

456,605

250

250
21,366,456

11,974
1,650

1,075,218 11,691,270
1,365,523

3,978,226
1,185,902

21,421,702
5,077,502

2,212,424

13,624

13,624

1,075,218 13,056,793

5,164,128

26,499,204

23,578,880

283
799

283
799

i i , 974
1,650

China
Hongkong,.
Total Asia

Rritioh Wa<%t Afrina

Total all countries
1

1,718,044

2,809,424

976
i

3,080

4,785

Portuguese Africa

3,260,736 112,123,987, 8,159,955

3.080

j

4,785

3,330,228 13,591,459

5,498,716 2 30,126,394

29,849,641

Includes: Ore and base bullion, $10,276,000; United States mint or assay office bars, $3,000; bullion refined, $604,000; United States coin, $73,000;

rei

° »^cludes: 'Domestic exports—United States mine or assay office bars, $1,277,000; bullion refined, $17,615,000; coin, $8,201,000; Foreign e x p o r t s Bullion refined, $2,810,000; coin, $223,000.
Excess of silver exports over imports since Jan. 1,1920, $18,002,000. Excess of silver exports over imports since Aug. 1, 1914, $447,374,000.




MARCH, 1920.

327

FEDERAL RESERVE BULLETIN.

Estimated general stock of money, money held by the Treasury and by the Federal Reserve System, and all other money in the
United States, Feb. 1, 1920.

General stock of
money in the
United States.
Gold coin (including bullion in Treasury)2
Gold certificates
Standard silver dollars
Silver certificates
Subsidiary silver
Treasury notes of 1890
United States notes
Federal Reserve notes
Federal Reserve Bank notes
National-bank notes
Total:
Feb. 1,1920
Jan. 1,1920
Oct. 1,1919
July 1,1919
Apr. 1,1919
Jan. 1,1919
July 1,1918
Jan. 1,1918
July 1,1917

Held in the
United States
Treasury as
assets of the
Government.1

Held by or for
Federal Reserve
Banks and
agents.

$1,336,624,859
353,330,870

Amount per
Held outside
capita outside
United States
United
States
Treasury and
Treasury and
Federal Reservo Federal
Reserve
System.
System.

285,"22i,*775'

57,514,086

232," 784," 726"

5,263,797

5,232,043
3 4,700,960

346,681,016
3,125,885,275
258,182,800
733,108,190

25.953,688
35,641,195
56,959,135
78,031,376

* 51,046,187
245,353,675
9,550,341
3,813,053

$421,143,060
286,027,220
88,670,337
132,111,784
222,819,969
1,693,525
269,681,141
2,844,890,405
191,673,324
651,263,761

7,744,769,263
7,961,320,139
7,662,898,238
7,588,473,771
7,586,752,855
7,780,793,606
6,742,225,784
6,256,198,271
5,480,009,884

625,142,749
604,888,833
616,213,318
578,848,043
550,628,454
454,948,160
356,124,750
277,043,358
253,671,614

2,009,651,988
2,044,422/303
2,087,709,369
2,167,280,313
2.195,151,766
2.220,705,767
2,018,361,825
1,723,570,291
1,280,880,714

5,109,974,526
5,312,009,003
4,958,975,551
4,842,345,415
4,840,972,635
5,105,1^9,679
4,367,739,209
4,255,584,622
3,945,457,556

$2,762,905,481

$365,779,472

$47.88
49.81
46.61
45.00
45.17
47.83
41.31
40.53
37.88

1
Includes reserve funds against issues of United States notes and Treasury notes of 1890 and redemption funds held against issues of nationa 2bank notes. Federal Reserve notes, and Federal Reserve Bank notes.
a 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.




328

MARCH, 1020.

FEDERAL RESERVE BULLETIN.

FEDERAL RESERVE BANK DISCOUNT RATES.
Rates on paper discounted for member banks approved by the Federal Reserve Board up to Feb. 28, 1920.
Discounted bills maturing within 90
days (including
member banks' 15day collateral notes)
secured by—
Federal Reserve Bank.
Treasury
Liberty
certificates bonds and
of indebt- Victory
notes.
edness.

Boston
New Y o r k . . . .
Philadelphia..
Cleveland....
Richmond....
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas.....\..
San Francisco.

5*
5i
i
5J
5J

Discounted bills secured otherwise than
by Government war
obligations, also unsecured,
maturing
within—

Bankers'
Trade
acceptacceptances
ances
maturing maturing
within
within
3 months. 90 days.

90 days
91 to 180
(including days
(agrimember
cultural
banks'
and live15-day
stock
collateral
paper).
notes).

I

6 !
6
6
6
6
6

5i I
o
5
4f

U

6 I
6
6

!
I

NOTE.—Rate on paper secured by War Finance Corporation bonds 1 per cent higher than rate on commercial
paper shown in column 5.




329

FEDERAL EESERVB BULLETIN.

MARCH, 1920.

CONDITION OF MEMBER BANKS.
Abstract of condition reports of State bank and trust company members in each Federal Reserve district on Nov. 17, 1919.
[In thousands of dollars.]

I District! District District District District District District District District District District District
No. 2
No. 6
No. 7
No. 8
No. 9 No. 10 No. 11 No. 12 United
No. 4
No. 5
No. 3
No. 1
(42
(66
(82
(113
(44
(321
(117
(38
(93
(63
(120 ! States
(36
(banks).; banks). banks). banks). b a n k s ) . b a n k s ) . banks). banks). banks). banks). banks). banks).j (1,135
banks).
-,
RESOURCES.
Loans and discounts
j 406,9782,141,756 166,232
Overdrafts
138
590
103
Customers' liability under letters
of credit
%5| Customers' liability account of
acceptances
15,452 125,702!
757
Liberty bonds (exclusive of Lib14,240 !')(>, 46()| 14,786
erty bonds borrowed)
Other United States bonds (exclusive of United States bonds
15
borrowed)
246:
1281
United States Victory notes
7,336; 56,076| 5,492
United States certificates of in16,855; 130,508
9,741
debtedness
War savings and thrift stamps
23
96 i
158
actually owned
1,8871
Stock of Federal Reserve Bank...
9,115
2,045!
i
Other bonds, stocks, etc. (exclu98,832| 515,841! 104,267
sive of securities borrowed)
52,117;
7,382;
9,209
Banking house
' ""'
'461
801
1,024!
Furniture and fixtures
2,518!
250
Other real estate owned
8,322
Lawful reserve with Federal lie- ,
serve Bank
j 37,092| 302,346 19,833
Items with Federal Reserve Bank i
in process of collection
! 16,190
52,940
3,528
Due from banks and bankers
| 32.305 252,223 11,360
Gold coin and certificates
! 1,675
8,823
473
All other cash in vault
14,430
44,444
5,498
E xchanges f orclearing house, also
checks on banks in same place.. 15,305 286,0011 2,818
Outside checks and other cash
\
items
1,423
20,107
329
Approximate interest earned but
not collected
584
12,687
636
Other assets
996
25,473
1,021
Total.

399,651
397

99.556 196,236 949,315 216,823! 67.5311 64,691
181
563i
' 200!
214
571
1,433

50,221 287,950|5,046,940
476
9611
5,827

157

40

31

1,193

1,712

196,090

27,039i

329,800

3,392;
7,255]

5,954
150,909

3,411

16,923]

293,217

80
291

105;
1,107!

1,254
25,384

1

7 ^71

1,007

10, 883

23,862

24,6421

5,223

11,948

51,658

11,456!

2,8311

5.564

294
13,648

24
3,144

123
5,898

1,322
44,147

103
4,856

263
644

5
1.724

30,330

1,285

9,376

60,733

9,492

2.957'

l,606|

93
2,907

23
525

60
1,081

342
4,588

1,322J

37!
281|

160
235!

163,088
15,656
1,277
4,807

13,245
2,294
178
629

223,024
24,
7,416 17,406
968
2,613
2,656
1.681

43,580
6,650|
86O!
958|

7,312! 9,461
1,033!
' 700|
350:
2081
257J
193;

766
1,139
460
209

65,447|1,268,888
8,152 129,154
1,424
10,624
2,579:
25,119

32,656

6,165

91,048

20,503!

4,284

4,683

23,039j

562,813

6,780
32,063
222

1,634
17,920
141

6,181 15,072
46,679 105,801
679
3,818

3,179

5,990

33,147

742! 2.283;
9,570,1 if, 5551
2'
163!
l,350|
1,3511

839 3,065!
16,069 39,234)
95
1,343!

11,992

11,7561
35,260J
295|
5,468!

121,010
610,039
18,002
135,679

6,020

1,049

12,740

32,676

16,665

9,1481.

4,499|

7,432j

S10

3,266j
!
806 i
594'

640

442

198
36

85
122

7, 7831
2.3041

.">, 410J
2' 524j

398
283
763

4,421
381
992

14,904
2,093
1,324

35,188
62,142

10,993
7,094

21,191

82,868
70,969

24,300i
19,78fij

14,91"

3,333

21,089

5,561|

3,535

3,953

948
2,026
692,320 4,203,806 359,318 760,659 158,886 366,8311,681,302 391,268! 101,601) 107,,909|

1,883

6,947|

764

5,853;

653

6,443;
1,911!
1,3051

374,116
56,561
20,635
35,105

23
453
87,196 513,217|9,424,313

LIABILITIES.
Capital stock paid in
Surplus fund
Undivided profits, less expenses
and taxes paid
Approximate 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
Certified and cashiers' or treasurers' checks outstanding.

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




30,475
33,758
11,488

138,4731 23,225
168,101| 47,103
53,341

1,517

6,8621

1,427

10,266}

10,076
79
80'

609

340

1,199

123

451
880
1,106
11,617
181
31
987
7,796 18,332
391,808
19,906
984
5,167
13,916 223,358
y»*
0,10/
434,985 2,393', 786 197,130 259,567
103,657 357,685
" 36,7411 300,913
61,771
9,637
7,0811 11,093
12,270
4S6

209,103
451
6,943
135,219
34,841

25,348!
750J

40,238
1,193

13,338
4,134
572

1,406

1,943

98l|

10'

3,658

234J

120

342
114
3,205
463
957
771
145 88,588 53,435 12,631
61,443
3,300 1,380
1,8
3,635 14,111
64,577 153,235 640,714 152,770; 31,182
40,338 69,407 666,717 88,075( 40,810
17,750
3639
3,639
380
380
1,367
2,137
41,184 19,605: 2,298
8,791 20,186
1,694
4,568! 1,032
503
3,040
134
41.
1,007 11,093 23,842
9,102.
169
1,976
48f
2,065
5,445!
403
24
17,937

j

7,183
2,596

25. 780i 412,869
11^ 549: 441,264

i

1,243

I.309!
212
74
203

47

16,740

28
19
7,209

1,910
51, 577
23, 733
1.143

1,007
57,515
5,657
484

2,882

3,386

129

771

1

5

135,458

7,561!

13,660

396;

18,694

397;

20,865

2,167
l,43o!
9 722,618
26,787 276,343
155,232 4,592,270
5,688 1,996,405
262,672
1,495 117,977
I
10,126J 395,417
887!

15,504

62

29
7,121
1,783 206, 567
1,396 49 114

692,320 4,203,806 359,318J 760,659 158,886 366,8311,681,302 391,268! 101,601 107,909

87,196 513,217 9,424,313

16,102
603

37,529

130,669

757|
9821

15,175J

7,662
1,523

6,52;

3,195

29,388

24.415

14,511

1,093

3,188

1,284

3,360) 270,334

I

i

830

FEDERAL RESERVE BULLETIN.

MARCH,

1920.

Abstract of condition reports of State bank and trust company members of the Federal Reserve System on Nov. VI
1919,
arranged by classes.
[In thousands of dollars.]

Central reserve city banks.
New
York
(33
banks).

Chicago i St. Louis
(12
(9
banks).
banks).

Total
(54
banks).

Other
reserve Country
city
banks
banks
(919
(162
banks).
banks).

Total
United
States

Total
United

(1,135
banks),
Nov. 17,
1919.

(1,042
banks),
June 30,
1919.

RESOURCES.

Loans and discounts
Overdrafts
Customers' liability under letters of credit
Customers' liability account of acceptances
Liberty bonds (exclusive of Liberty bonds borrowed)
Ot\ver United States bonds (exclusive of United States bonds
borrowed)
,
United States Victory notes
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
t
Furniture and fixtures
Other real estate owned
Lawful reserve with Federal Reserve Bank
Items with Federal Reserve Bank in process of collection
Due from banks and bankers
Gold coin and certificates
All other cash in vault
Exchanges for clearing house, also checks on banks in same
Outside checks and other cash items
Approximate interest earned but not collected.
Other assets
T otal

106,953 2,289,994 1,628,097 1,128,849 5,046,940
19
543
2,511
2,773
5,827
975
182
36
1,193
6,911
153,258
38,894
3,938
196,090
4,041
138,469
100,867
90,464
329,800

4,318,722
3,944
11,768
179,925
293,548

769
26,429
2,342
551
207
12,316
6,330
8,695
63
1,906

51,160
120,222
81
10,495
468,030
44,162
800
6,290
326,396
58,752
273,784
10,200
43,399

4,841
56,438
105,605
515
9,328
496,117
51,956
4,142
13,532
152,230
46,652
196,185
3,760
49,047

15,897
191,633
360,286
975
23,661
1,131,988
115,219
9,263
22,937
514,805
82,197
545,838
18,955
116,780

3,105
1,399
498
118

297,927
27,639
12,141
24,089

62,488
21,316
5,280
6,446

1,773,562
471
854
123,101
123,545

409,479
53
121
23,246
10,883

14
38,440
100,537
59
7,479
365,085
39,095
144
6,041
269,041
42,642
223,329
8,306
31,372

275
11,289
14,139
18
2,247
76,516
2,725
105
42
45,039
9,780
41,760
1,831
10,121

279,668
18,531
10,451
23,441

15,154
7,709
1,192
530

3,485,208

684,254

103,800
145,667
40,669
5,859
9,621
8,829

366,052
219,253
,016,138
191,188
56,783
148,091

34,500
40,400
8,126
1,426
2,919
1,238
597
53,019
7,872
307,207
179,656
11,982
11,124

12,484
1,248
81,533
45,357
2,798
9,369

6,870
132,563
33,825

129
23,227
832

4
1,865
58

3,485,208

684,254

120,061

16,078

3,115

139,254

96,736

34,344

270,334

175,934

12.6

12.7

13.3

12.6

9.5

6.9

10.4

10.8

1,431
5,546

824
5,954
43,311
150,909
67,390
293,217
658
1,254
5,561
25,384
304,741 1,268,888
33,036
129,154
5,682
10,624
5,297
25,119
84,187
562,813
15,606
121,010
140,070
610,039
4,042
18,002
43,233
135,679
13,701
7,606
3,214
4,570

374,116
56,561
20,635
35,105

364,918
36,152
21,169
72,002

189,633 4,359,095 3,056,429 2,008,789 9,424,313

8,452,582

118,919
412,869
69,794
441,264
37,071
135,458
1,863
13,660
1,495
18,694
4,453
20,865
723
2,167
74,514
722,618
12,930
276,343
894,983 4,592,270
683,142 1,996,405
13,870
117,977
81,656
395,417
6,972
15,504
11
7,121
3,947
206,567
2,446
49,114

371,979
420,934
110,351
11,191
19,569
10,512
964
676,852
222,423
4,092,480
1,558,941
337,432
376,995
9,852
7,824
194,551
29,732

189,633 4,359,095 3,056,429 2,008,789 9,424,313

8,452,582

LIABILITIES.

Capital stock paid in
Surplus fund
Undivided profits less expenses and taxes paid
Approximate interest and discount collected but not earned..
Amount reserved for taxes accrued
|
Amount reserved for interest accrued
Due to Federal Reserve Bank
I
Due to banks and bankers
Certified and cashiers' or treasurers' checks outstanding
i
Demand deposits
Time deposits
United States deposits
Bills payable with Federal Reserve Bank
Bills payable other than with Federal Reserve Bank
Cash letters oi 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 net deposit
liability (per cent)




11,600
14,058
3,219
645
149
246

149,900 144,050
200,125 171,345
52,014
46,373
7,930
3,867
12,689
4,510
6,099
10,313
847
597
431,555 216,549
35,040
228,373
2,404,878 1,292,409
897,062
416,201
32,544
71,563
168,584 145,177
7,003
162,655
34,715

8,532
107
39,965
11,953

MARCH, 1920.

331

FEDERAL RESERVE BULLETIN.

Abstract of condition reports of all member banks in each Federal Reserve district on Nov. 17, 1919 (including 7\860 national
banks and 1,135 State banks and trust companies).
[In thousands of dollars.]
District District District District District District District District District District!District\ District
No. 5 No. 6
No. 8 No. 9 N o . 10 No. 11 N o . 12
No. 2
No. 3
No. 4
No. 7
No. 1
(1,029
(1,369
(534
(840
(912
(752
(676
(580
(427
(700
(430
(746
banks). banks). banks). banks). banks). banks). banks). banks). banks). banks). banks). banks).

Total
United
States
(8,995
banks).

RESOURCES.

Loans and discounts
1,197,256 5,131,976
Overdrafts
5,499
517
Customers' liability under
letters of credit
4,931
19
Customers' liability account
269,629
of acceptances
72,993
United States Government
securities owned *
186,8901,110,244
Stock of Federal Reserve
22,449
7,102
Bank
Other bonds, stocks, and
251,4991,072,945
securities
32,457
Banking house
2,489
4,385
Furniture and fixtures
1,776 12,306
Other real estate owned
Lawful reserve with Federal
112,546 731,162
Reserve Bank
Items with Federal Reserve
Bank in process of collec46,914 154,102
tion
Due from banks and bankers 121,730 436,066
50,395 154,652
Cash in vault
Exchanges for clearing
house, also checks on
54,545 897,276
banks in same place
Outside checks and other
5,831 38,090
cash items
Redemption fund and due
from United States Treas2,579
5,733
urer.
A pproximate interest earned
3,328 23,719
butt not
ot collected
co
6,036 42,391
h assets
Other
Total

973,5021,371,484 790,374 610,482 2,464,296 683,791 700,262 913,272 600,462 1,166,806 16,603,963
2,085 3,012
1,332 1,737
364
2,895
2,704 2,250
3,450
3,094
28,939
39

20

48

54

300

4

18,505

26,807

17,178

18,611

53,199

15,478

298,868 358,822 195,070 159,555
7,850

9,450

4,352

399,112 444,829 98,315
32,342 56,269 26,366
4,627 2,967
3,576
5,929 10,909 3,019
105,145
58,730
95,610
42,592
40,715

129,511

65,357

3,446

22,040

61

53

587

6,116

949

11,133

23,670

539,097

512,189 134,109 126,435 161,241 148,998 268,522 3,660,943
12,262

4,041

3,059

3,962

58,277 414,271 105,379 68,026 81,492
20,477 53,363 18,247 17,228 19,772
7,462 2,552 3,353 3,833
3,375
7,025 5,514 3,245 3,342
5,397
51,378

55,593 44,796 22,859
172,700 145,563 151,824
60,914 33,252 25,188
29,189

10,945

251,760

69,287

53,426

81,132

3,399

5,438

60,372

114,076 1,825,152

63,334 44,137 5,685 42,722 39,994 18,519 597,385
400,561 131,800 133,156 296,232 189,273 300,841 2,575,356
102, 993 21,428 20,080 28,834 22,401 40,263 602,992
20,733

27,127

5,603

15,193

15,034

43,116 1,294,043

6,612

7,305

9,623

12,814

134,379
38,689

6,735

6,332

9,308

22,251

3,465

5,328

2,879

1,968

4,818

2,044

1,773

2,410

2,454

3,238

3,646
1,152

5,336
2,159

1,787
1,000

1,313
1,134

8,449
4,180

2,615
1,229

5,659
283

3,352
348

2,041

6,285
2,190

3,875

86,810

15,091 181,036 3,190,272
18,163 33,542 424,995
3,877
7,104
49,600
4,354
8,643
71,459

67,530
62,788
2,156,902 10,214,324 2,095,017 2,752,014 1,462,432 1,174,668 4,483,506 1,270,2411,176,346 1,684,257 1,151,017 2,239,784 31,860,508

LIABILITIES.

Capital stock paid in
123,796 342,152 103,841 158,365
Surplus fund
114,836 406,679 160,771 157,915
Undivided profits less ex49,569 177,761 44,339 62,915
penses and taxes paid
Approximate interest and
discount collected but not
5,139
earned
,
7 248 23 135 4,959
Amount reserved for taxes
3,225 34,443 3,
accrued
3,
Amount reserved for inter1,582 16,415 2,368
3,001
est accrued
Due to Federal Reserve
1,794
212
786
Bank
4,584
Due to banks and bankers... 142,916 1,470,632 167,841 226,265
Certified and cashiers' or
treasurers' checks outstanding
32,892 582,293 14,903 16,2.50
Demand deposits
1,190,859 5,039,591 976,6721,176,281
Time deposits
269,329 816,349 330,709 653,510
United States deposits
28,539 176,016 25,826 27,227
Bills payable with Federal
152,425 111,930
Reserve Bank
50,517 608,171
Bills payable other than
with Federal Reserve
Bank
3,067 2,804
5,093
3,294
Cash letters of credit and
travelers' checks outstand68
142
ing
11,063
302
27,121
Acceptances
78,378 287,411 19,485
National-bank notes outstanding
48,880
84,782 54,254 90,057
United States Government
securities borrowed
4,757
67,682 24,620 20,417
11
1,491
Other bonds borrowed
247
1,784
Securities (other than United
States or other bonds)
borrowed
4,129
Other liabilities
3,942
60,314 5,616

87,646 69,379
58,410 44,482

242,192 86,574 68,105 87,240 73,562
169,667 48,802 35,047 46,363 40,903

25,228

17,120

67,340

21,059

4,707

2,654

10,054

3,875

1,229

1,137

9,802

969

1,980

1,776

5,509

1,115

5,489
365
191,734 165,196

123,019 1,565,871
59,809 1,343,684

21,535 25,620

20;887

39,309

2,701

4,584

2,918

2,508

74,482

2,148

1,507

1,186

1,762

64,681

1,757

1,663

410

2,834

40,410

1,336
349
143
1,306
558,856 219,681 148,449 332,466 186,986

572,682

71
16,435
267,593 4,078,615

10,471 7,872 37,441 7,372 14,303 20,961 15,689 28,588 789,035
602,752 518,8071,877,428 549,158 456,657 815,550 619,878 1,025,370 14,849,003
291,462 202,467 1,136,803 205,296 338,246 219,643 70,099 515,580 5,049,493
8,284 9,582 11,660 14,106 15,805 386,309
18,784 7,963 42,517
48,975 29,098

70,799

65,115

148,416

36,471

27,398

8,859

5,782

6,615

9,038

4,346

36
17,292

57
19,031

1,319
53,944

25
15,409

35
10,945

54,014 38,661

79,535

41,582 30,894

7,846

2,633
365

10,398
331

7,476
142

2,879
6

6,156
768

5,9
217

3,033

3,806

63
23,970

7
7,906

1,170

23
2,663

1,025

7,777

52,058 1,401,373

9,690

5,338

71,703

217
110
949 11,310
48,136 46,657

24,401

13,763
565,676

62,892

680,344

6,431
309

167,228
6,332

5,718

97
123,292

2,156,902 10,214,324 2,095,017 2,752,014 1,462,432 1,174,668 4,483,506 1,270,2411,176,3461,684,257 1,151,017 2,239,784 31,860,508
Total.
Liability for rediscounts, including those with Federal
20,155 45,447 950,810
96,381 29,898 26,703
Reserve Bank
42,864 34,268 49,920
135,083 321,708 92,560
1
Includes Liberty loan bonds, Victory notes, United States certificates of indebtedness, but excludes securities borrowed by State bank;
and trust company members.




332

FEDERAL RESERVE BULLETIN.

MARCH, 1920.

Abstract of condition reports of all member banks of the Federal Reserve System on Nov. 17, 1919, arranged by classes
(including 7,860 national banks and 1,135 State banks and trust companies).
[In thousands of dollars.]
Central Reserve city banks.
Country
banks
(8,366
banks).

RESOURCES.

Total.
United
States
(8,995
banks)
Nov. 17,
1919.

i

Loans and discounts
|4,143,016
Overdrafts
i
5,079
Customers' liability under letters of credi t
i
4,767
Customers' liability account of acceptances
! 264,250
United States Government securities owned i
| 822,096
Stock of Federal Reserve Bank
! 17,105
Other bonds, stocks, and securities
j 669,095
Banking house
I 66,933
Furniture and fixtures
!
644
Other real estate owned
|
7,025
Lawful reserve with Federal Reserve Bank
I 634,907
Items with Federal Reserve Bank in process of collection.' 122,698 j
Due from banks and bankers
! 328^ 738 j
!
Cash in vault
109,992 I
Exchanges for clearing house, also checks on banks in !
same place
! 8S2,408
Outside checks and other cash items
j 33,183 j
Redemption fund and due from United States Treasurer..;
3,256 i
Approximate interest earned but not collected
i 18,717 !
Other assets
I 39,820 i

j
967,814
289
209
46,680
103,411
4,823
117,149
11,025
122
198
124,114
40,417
176,143
37,164
61,790
9.370
'4fiO
1,868
2,354

.18,173,729 11,705,400

Total.

Total.
United
States
(8,822
banks)
J u n e 30.
1919.

27<>,289 ; .,387,119 5,144,765
144 :
5,512
5,890
4,976
917
322,550
11,620 i
195,369
961,623 1,034,722
36,116
23,710 i
1 782
26,884
830,523 | 922,964
44,279
84,532 I
6,574
148,640
1,517
751
10,400
11,017 i
3,794
26,671
794,553 I
35,532
524,962
194,105 ! 348,449
30,990
551,700 i
46,819
952,163
152,495 ;
5,339
169,052
11,957
2,366
559
799
162

956,155
44,919
4,275
21,384
42,336

515,872 10,395,001

|
j
!
j
j

267,631
51,483
10,855
15,402
12,047

6,072,079
17,537
223
21,178
1,664,598
36,216
1,436,785
191,823
37,683
33,771
505,637
54,831
1,071,493
281,445

16, (=03, 963 14. 890,471
28, 939
17,993
6, 116
14,789
539, 097
440,411
3,660, 943 4. 036,899
86, 810 !
82,729
3,190, 272 2, 947,967
424, 995 1 ' 402,726
600 !
45,402
459
68,775
152
1,723,774
1,825,
369,612
597: 385
2,575: 356 2,125,074
559,433
602 992

n;

70,257 1,294,043
37,977
134,379
23,559
38,689
30,744
67,530
8, 405
62,788

1,188,101
109,046
38,484
67,362
114,681

9,869,266 11,596,241 31,860.508 ,29,243,729

LIABILITIES.
238,150
Capital stock paid in
329,717
Surplus fund
132,727
Undivided profits, less expenses and taxes paid
Approximate interest and discount collected but not
earned
19,051
Amount reserved for taxes accrued
32,946
Amount reserved for interest accrued
11,669
Due to Federal Reserve Bank
Due to banks and bankers
1,389,357
Certified and cashiers' or treasurers' checks outstanding... 571,104
4,012,720
Demand deposits
338,621
Time deposits
161,215
United States deposits
490,199
Bills payable with Federal Reserve Bank
Bills payable other than with Federal Reserve Bank
10,966
Cash letters of credit and travelers' checks outstanding...
S 281,976
Acceptances
i
37,585
National bank notes outstanding
|
65,029
United States Government securities borrowed
i
1,590
Other bonds borrowed
Securities (other than United States or other bonds) borrowed
49,102
Otherliabilities
Total

T

82,850
78,050
20,620
6,200
7,670
1,300
597
362,285
21,862
791,959
194,610
23,877
55,789
300
951
47,426
347

357,300
430,900
161,102

471,075
433,487
151,054

737,496
479,297
260,526

27,113
40,833
13,420
597
111,941 1,863,583
3,599 i 596,565
215,549 5,020,228
69,504
602.735
190,357
5,265
557,985
11,997
305
11,936
19
11,574
340,976
10,723
48,655
4,716
69,745
1,590

24,397
16,866
11,232
5,519
1,695,216
118,817
4,396,678
1,423,269
118,045
508,848
19,635
1,295
202,867
170,895
64,842
2,285

22,972

59,076

32,944

1, S62
217
451

i

15,758
10, 319
519, 816
73, 653
5,432,097
3,023,489
77, 907
334, 540
51, 763
532
21, 833
460, 794
32, 641
2. 457
97

8,707

|8,173,729 'l, 705,400

Liability for rediscounts, including those with Federal i
Reserve Bank
] 289,013
Ratio of reserve with Federal Reserve Bank to net deposit I
liability (per cent)
I
13.3

36,300
23,133
7,755

1,267

515,872 10,395,001

1,565,871 I 1,489,792
1,343; 684 1,292,716
572,682 '482,889
74,482
64,681
40,410
16,435
078,615
789,035
849,003
049,493
386,309
401,373
71,703
13,763
565,676
680,344
167,228
6,332
97
123,292

>, 869,266 11,596,241 131,860,

56,161

7,010

352,184

440,909

13.0

13.5

13.3

10.0

15- ,717 |

66,306
60,227
24,302
11,876
3,650.502
704;349
13,195,072
4,343,382
902,339
1,368,112
68,136
24,875
466,586
676,657
233,638

175,276
29,243,729

950,810

612,505

10.1

.10.6

1
Includes Liberty loans, Victory notes, United States certificates of indebtedness, but excludes securities borrowed by State bank and
trust company members.




333

FEDERAL, RESERVE BULLETIN.

MARCH, 1920.

Classification of loans and discounts of State bank and trust company members of the Federal Reserve System, as shovm by
their condition reports for Nov. 17, 1919.
[In thousands of dollars.]
Total
District District District District! District District District District District District District District United
No. 1
No. 2
No. 3 No. 4 No. 5 No. 6 No. 7 No. 8 No. 9 No. 10 No. 11 No. 12 States
(82
(42
(120
(36
(117
(38
(93
(44
(321
(66
(113
(63
(1,135
banks).! banks). banks). banks). banks). banks). banks). banks). banks). banks). banks). banks). banks).
i __

On demand:
Not secured by collateral... 28,185
Secured by Liberty bonds5
Victory n o t e s , a n d
United States Treasury
certificates of indebtedness
2,187
Secured by other collateral. 72,466
On time:
Not secured by collateral... 211,904
Secured by Liberty bonds,
Victory n o t e s , a n d
United States Treasury
certificates of indebtedness
39,696
Secured by other collateral. 59,384
Secured by real-estate mortgages or other real-estate
Uens or deeds
38,333
Acceptances of other banks discounted
9,370
Acceptances of this bank pur2,098
chased or discounted
Loans and discounts not classified




"

98,013

4,657 I 19,941

I
I - - |
i
3,091
2,348 | 8,180 | 27,695 j 9,567 | 3,194

2,670

12,403

219,944

242
3,291

1,576
18,514

64,616
1,159,671

89,138

1,744,740

2,425 ! 1,070 5,504
23,733 j 27,102 47,991

479,048
1,026,825

31,807
620,753

6,432
80,935

1,952
6,250 i 843 I 1,519 i 11,505
94,047 21,842 I 57,360 1140,665 40,189

673,326

36,546

95,589

45,592 ! 78,904 366,728 80,291

29,239 ! 24,527 12,956

316,753
427,485

28,872
18,253

25,576
72,588

5,465
19,448

8,930 34,400
51,199 202,669

9,441
58,567

916
18,406

50,944

6,775

10,210 181,865

22,810

14,004

6,813

2,964 114,190

545,468

180

19,638

2,773

22

4

1,426

131,009

10,457

2,436

900

221

366

48,556

263

6,323

208

8,004

5,394

91,166

94,127 I

368

3,101

31,135 i

200

305

438

Total loans and discounts. |463,623 2,344,343 181,657 408,563 102,751 226,939 |987,864 232,813

250
2,376

53
7,233

1,210
68,628

67,879

51,505 291,316 5,427,881

334

FEDERAL RESERVE BULLETIN.

MARCH. 1920.

CONDITION OF PRINCIPAL EUROPEAN BANKS OF ISSUE, 1913-1919.
BANK OF ENGLAND.
[Combined data for issue and banking departments.]
[From the London Economist and weekly statements of the Bank of England.]
[In thousands of dollars.]
Doe. 31,
1913.

Dec. 30,
1914.

Dec. 29,
1915.

Dec. 27,
1916.

Dec. 26,
1917.

Dec. 25,
1918.

Dec. 31>
1919r

ASSETS.

Gold and silver
Government securities:
Held by issue department
Held by banking department
Other securities

170,245

338,191

250,510

264,275

283,899

384,994

444,516

89,787
64,233
253,729

89,787
72,061
516,998

89,787
159,816
545,416

89,787
278,304
518,094

89,787
283,732
461,776

89,787
346,037
448,399

89,787
450,000
519,635

577,994

1,017,037

1,045,529

1,150,460

1,119,194

1,269,217

1,503,938

Proprietor's capital
Rest (surplus)
Public deposits
Other deposits
Seven-day and other bills
Notes in circulation

70,822
15,827
49,913
297,280
66
144,686

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
725,287
50
342,149

70,822
15,923
93,500
879,075
63
444,555

Total
Ratio of metallic reserve to deposit and note liabilities
combined—per cent

577,994

1,017,037

1,045,529

1,150,460

1,119,194

1,269,217

1,503,938

34.65

36.35

26.13

24.85

27.50

32.55

31.36

Total
LIABILITIES.

BANK OF FRANCE.
[From weekly statements of the Bank of France.]
[In thousands of dollars.]
Dec. 20,
1913.

Gold in vault
Other metallic reserve..
Total vault reserve
Gold held abroad
Foreign credits
Government securities:
Permanent investments
Advances to the 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

Dec. 10,
1914.1

I Dec. 28,
1916.

Dec. 27,
1917.

Dec. 26,
1918.

Dec. 26,
1919.

678,857
123,532

799,359
67,750

967,950
67,953

652,885
56,910

639,682
47,798

664,009
61,441

694,847
51,731

802,389

867,109

1,035,903
203962

709,795
326,766
159,380

687,480
393,162
150,231

725,450
393,162
450,939

746,578
381,808
250,247

57,900
694,800

57,900
965,000

57,900
1,428,200

57,900
2,412,500

57,900
3,309,950

57,900
4,921,500

41,165
702,040
2 150,686

121,590
21,882
82,859
354,002
222,320
9,702
70,104

347,400
21,742
119,599
258,395
254,326
8,895
97,024

621,460
21,805
176,009
221,395
236,386
8,935
121, 111

680,518
21,757
203,101
198,513
234,633
8,960
299,202

724,715
21,792
248,268
120,903
282,616
9,121
371,942

3,145,224

3,789,422

5,108,374

6,584,085

8,137,390

35,223
8,292
4,211
33,562
407,970
2,568,801
87,165

35,223
8,292
4,853
2,897
436,223
3,219,012
82,922

35,223
8,292
4,985
48,609
562,352
4,311,002
137,911

35,223
8,292
973
21,555
456,676
5,838,172
223,194

35,223
8,294
1,003
14,764
603,530
7,193,986
280,590

3,145,224

3,789,422

5,108,374

6,584,085

8,137,390

13.95

11.48

9.55

7,000

22, 7<>fi
294,«07
149.074
8,536
61,761
1,397,033

Total..

Dee. 30,
1915.

LIABILITIES.

Capital
Surplus, including special reserves..
Dividends unpaid
Government deposits
Other deposits
Bank notes in circulation
Sundry liabilities

35,223
8,206

35,223

309
77,848
111,038
1,102,715
61,694

34,075
515,687
1,927,306

Total
! 1,397,033
Ratio of metallic reserve to deposit and note liabilities
62.10
combined—per cent.




* No data available as ut end of 1914.
* Advances on securities only.

35.00

34.36

19.37 i

incomplete data for Dec. 10, 1914 taken from the report of the minister of finance.

335

FEDERAL RESERVE B U L L E T I N . .

MARCH, 1920.

Condition of principal European banks of issue, 1913-1919—Continued.
GERMAN REICHSBANK.
[From the Deutscher Reichsanzeiger and the Deutscher Oekonomist.]
[In thousands of dollars.*]
Dec. 31,
1913.

Dec. 31,
1914.

Dec. 31,
1915.

Dec. 31,
1918.

Dec. 31,
1919.

538,808
4,764

51,173

589,587
306,512
745
1,381,189
3,079
12,227
64,791

603,757 i 615,929
100,457
312,920
332
160
2,287,124 3,473,873
2,322
1,217
19,932
21,220
186,622
497,752

543,572
1,254,599
715
6,530,491
1,429
37,159
569,060

259,510
4,888
264,407
2,626,217
470
9,943,548
2,368
39,061
585,876

885,250

1,717,982

2,358,130

3,200,546

4,923,071

8,937,025

13,461,947

Capital paid in
Surplus
Notes in circulation
Other liabilities payable on demand.
Sundry liabilities

42,840
16,671
617,240
188,763
19,736

42,840
17,726
1,200,924

418,144
38,348

42,840
19,171
1,646,465
561,445
88,209

42,840
20,342
1,917,007
1,086,281
134,076

42,840
21,453
2,729,324
1,915.993
213,461

42,876
22,629
5,285,182
3,291,924
294,414

42,876
23,700
8,503,352
I 4,066,517
I
825,502

*tal
Ratio of metallic reserve to deposit and note liabilities
combined—per cent

885,250 I 1,717,982

2,358,130

3,200,546

4,923,071

8,937,025

13,461,947

26.70

20.10

13.25

6.33

2.10

Dec. 29,
1917.

Dec. 28,
1918.

Total..

278,453
65,886
344,339
10,996
3,038
354,798
22,485
96,012
53,582

498,089
8,774
506,863
208,250
1,264
936,903

5£P

599,873
3,884

Dec. 31,
1917.

572,768
43,161

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

581,954
7,633

Dec. 31,
1916.

LIABILITIES.

42.72 !

31.30

!
I

BANK OF SPAIN.
[From weekly statements of the Bank of Spain and Espafia Economica y Financiera.]
[In thousands of dollars.]
Dec. 27,
1913.

Dec. 26,
1914.

D e c 31,
1915.

Dec. 30,
1916.

Dec. 27,
1919.

Gold
Silver*

92,490
138,282

110,446
136,455

167,375
145,310

241,423
143,021

379,595
137,134

430,072
123,936

472,041
121,686

Total vault reserve
Credits abroad
Loans, discounts, and advances.
Government securities:
Charter 1891
Charter 1899
Other
Sundry assets

230,772
37,374
151,588

246,901
28,474
154,820

312,685
19,917
128,801

384,444
17,403
129,515

516,729
17,253
141,166

554,008
16,881
220,999

593,727
12,819
312,939

28,950
19,300
66,476
18,844

28,950
19,300
66,476
29,144

28,950
19,300
66,476
31,331

28,950
19,300
66,476
25,200

28,950
19,300
66,476
16,591

28,950
19,300
66,484
43,704

28,950
19,300
66,484
8,753

553,304

574,065

607,460

671,288

806,465

950,326

1,042,972

Capital
Surplus
Government deposits.
Other deposits
Notes in circulation..
Sundry liabilities

28,950
3,860
30,052
92,029
371,385
27,028

28,950
3,860
21,855
117,832
379,258
22,310

28,950
4,632
8,661
137,176
405,334
22,707

28,950
5,018
8,656
146,846
455,496
26,322

28,950
5,018
12,112
185,233
537,088
38,064

28,950
11,194
11,933
225,032
640,030
33,187

28,950
11,580
25,113
199,770
744,266
33,293

Total
Ratio of metallic reserve to deposit and note liabilities
combined—per cent

553,304

574,065

607,460

671,288

806,465

950,326

1,042,972

46.76

47.57

56.73

62.92

70.35

63.17

61.2*

Total.
LIABILITIES.




1

Figures from 1913 to 1917, inclusive, converted at the rate of $0,238; for 1918 and 1919 at the rate of $0.2382.

336

MARCH, 1920.

FEDERAL RESERVE BULLETIN.
Condition of principal European banks of issue, 1913-1919—Continued.
BANK OF THE NETHERLANDS.
[From annual reports and weekly statements of the Bank of the Netherlands.]
[In thousands of dollars.]
Mar. 31,
1914.

Mar. 31,
1915.

Dec,. 30.
i« '
1916.

Dec. 31,
1915.

Dec. 29,
j 1917.

Dec. 28,
1918.

Dec. 27,
1919.

Gold coin and bullion.
Silver

64,346
3,866

116,097
751

172,531 i
2,491 !

236,216

280,690
2,825

277,155
3,435

256,204
2,453

Total vault reserve.
Loans and discounts
Foreign bills
Advances
Government securities...
Other securities
Bank premises
Sundry assets

68,212
22,348
7,657 I
38,151
50
3,619
723
638

116,848
28,791
3
81,503
368
3,334
643
3,674

175,022 ;
30,692
1,007 '
37,619 i

239,024
26,807
3,225
34,373
4,654
3,657 !
563 i
28,577 |

283,515
32,891
3,232
43,194
3,649
589
26,256

280,590
97,964
3,590
56,085
1,499
3,560
712
35,821

258,657
67,883
19,438
100,547
4,921
3,399
1,331
16,344

235,164

258,545

340,880 !

393,326

479,821

472,520

8,040 I
2,072 j
304,868
1,503

8,040
2,104
357,890
1,434
8,677
12,883
2,298

8,040
2,042
429.717
'824

8,040
2,010
415,158
700

35,568
3,630

41,142
5,470

Total.

141,398

I

LIABILITIES.

Capital
Surplus
Notes in circulation
Interest-bearing certifies tes.
Government deposits
Other deposits
Sundry liabilities
Total
Ratio of metallic reserve to deposit and note liabilities
combined—per cent




3,588
643
9,974

8,040 i
2,011
125,768
750

8,040
2,010
189,916
695

3,613 i
1,216 !

33,282
1,221

8,040 I
2,010
231,976 i
1,395 '
2,204
764
3; 156

235,164 j

258,545 j

340,880

393,326

479,821

472,520

52.18 i

71.33 j

72.80

74.43

60.19

56.59

141,398 I
52.41 I

21,940 !
2,457

INDEX.
Acceptances:
Page.
Discounted by Federal Reserve Banks during
January
306
Held by Federal Reserve Banks on last Friday
in January
307
Purchased by Federal Reserve Banks during
January
306,307
Limitation upon the aggregate rediscount of
paper of one borrower made for different
member banks
276,278
Warehouse acceptances covering goods under
contract for sale and delivery at a remote
period
,. 276,277
Agricultural paper held by Federal Reserve Banks
during January
307
Annual report of the Federal Reserve Board, extract from
223,239
Automobile accessories industry, terms of sale i n . . 261
Automobile industry, terms of sale in
258
Bank credit, contraction of
221
Bank of England, condition of, 1913-1919
334
Bank of France, condition of, 1913-1919
334
Bank of Netherlands, condition of, 1913-1919
336
Bank of Spain, condition of, 1913-1919
335
Bank transactions, debits to individual account.. 297-299
Banking situation, discussion of
222
Bills of exchange, practice of handling in New
Zealand
269
Branches, foreign, of American banks, list of, in
operation February 28, 1920
272
Business and financial conditions during February .225-239
Charts:
Growth of the check clearing and collection
system
312
Par point map
308
Charters issued to national banks during February. 274
Check clearing and collection:
Collection of maturing items for the account of
another Federal Reserve Bank, ruling on... 276
Growth of the system, April 1917-January,
1920
310
Map showing States in which banks remit at
par
308
Number of nonmember banks on par list
309
Operation of system, January 16-February 14. 308
Clearing-house bank debits
297-299
Coal and coke industry, terms of sale in
266
Collateral notes held by Federal Reserve Banks
during January
307
Commercial failures reported
274
Condition reports:
Federal Reserve Banks
313-316
Member banks in selected cities
319-324
Principal European banks of issue, 1913-1919. 334-336
State banks and trust company members on
November 17, 1919
329-333
Credit, bank, contraction of
221
Credit control (extract from Annual Report of the
Federal Reserve Board)
223, 239
Credit situation, discussion of
214
Currency, stock of, in the United States
327
Currency reform in India, report of committee on. 253-258
Debits to individual account
297-299




Discount and open market operations of the Federal Page.
Reserve Banks
303-307
Acceptances purchased and held on January 31,
1920
307
Bills discounted during January, distributed by
classes
306
Bills held by Federal Reserve Banks on last
Friday in January
307
Bills purchased during January
306
Earning assets held during January
305
Number of member banks accommodated
304
Discount policy (extract from Annual Report of the
Federal Reserve Board)
223, 239
Discount rates:
In effect February 28
328
Prevailing in various centers
286
Earning assets held by Federal Reserve Banks during January
305
Electrical products industry, terms of sale in
262
England:
Bank of England, condition of
334
Price control of commodities in
244
Wholesale prices in, 1913-1919
243
Export credits, reduction of
217
Export trade, discussion of
217,219
Exports:
Gold
221,325
Gold movement, 1919
219
Silver
221,326
United Kingdom,France,and Italy,during 1919. 218
Failures, commercial, reported
274
Federal Advisory Council, meeting of
224
Federal Reserve agents' fund, transactions through,
November, 1919-February, 1920
302
Federal Reserve Banks:
Discount and open market operations of
303-307
Resources and liabilities of
313-316
Federal Reserve notes:
Note account of Federal Reserve Banks and
agents
317
Stock of, in the United States
327
Fiduciary powers granted to national banks
274
Foreign banking situation, discussion of
218
Foreign branches of American banks, list of, in
operation February 28, 1920
272
Foreign credit situation
214
Foreign exchange:
Discussion of
216
Low level for sterling
216
Rates
216,219
Foreign trade, discussion of
219
France:
Bank of France, condition of
334
Price control of commodities in
246
Wholesale prices, 1913-1919
243
German Reichsbank, condition of, 1913-1919
335
Gold:
Exports, movement of, 1919
219
Imports and exports
221, 325
Stock of, in the United States
327
Gold settlement fund, transactions through, November, 1919-February, 1920
300-302
Government financing during February
213
337

338

INDEX.

Imports and exports:
PageGold
221, 325
Silver
'.
221,326
Index of wholesale prices:
Abroad
279-282
In the United States
282-285
India, report of committee on currency reform in.. 253-258
Interest rates prevailing in various centers
286
Investment securities, depression in
223
Italy:
Price control of commodities in
246
Wholesale prices in, 1913-1919
243
Law department:
Limitation upon the aggregate rediscounts of the
paper of one borrower made for different
member banks
278
Warehouse acceptances covering goods under
contract for sale and delivery at a remote
period
277
Live-stock paper held by Federal Reserve Banks
during January
".
307
McKenna, Hon. R., address of, on price situation,
etc., before London Joint City and Midland
Bank
247-252
Maturities:
Bills discounted and bought
306, 316
Bills purchased during January
306
Member banks:
Abstract of condition reports of State bank and
trust company members on November 17,
1919
329-333
Number discounting during January
304
Number in each district
304
Resources and liabilities
319-324
State banks admitted to system during February
273
Money:
Per capita circulation
327
Stock of, in the United States
327
National banks:
Charters issued to, during February
274
Fiduciary powers granted to
274




New Zealand, practice of handling bills of exchange Page,
in
269
Nonmember banks, number of, on par list
309
Physical volume of trade
288
Prices:
Address of Hon. R. McKenna before London
City and Midland Bank, on price situation,
etc
247-252
Control of, in England, France, and I t a l y . . . 243-247
Wholesale, abroad
216, 279-282
Wholesale, in the United States
282-285
Reserve percentages of Federal Reserve Banks
220
Resources and liabilities:
Federal Reserve Banks
313-316
Member banks in selected cities
319-324
Rubber-goods industry, terms of sale in
260
Rulings of the Federal Reserve Board:
Collection of maturing items for the account of
another Federal Reserve Bank
276
Limitation upon the aggregate rediscounts of
the paper on one borrower made for different
member banks
276
Warehouse acceptances covering goods under
contract for sale and delivery at a remote
period
276
Sale, terms of, in the principal industries
258-269
Silver:
Imports and exports
221, 326
Stock of, in the United States
327
State banks and trust companies:
Abstract of condition reports
329-333
Admitted to system during February
273
Terms of sale in the principal industries
258-269
Trade:
Export trade, discussion of
217, 219
Physical volume of
288
Treasury financing during February
213
Wholesale prices:
Abroad
243, 279-282
In the United States
282-285




FEDERAL RESERVE DISTRICTS
* FEDERAL RESERVE BANK CITIES
O FEDERAL RESERVE BRANCH CITIES

The branches at Helena, Mont., and Oklahoma City, Okla., have been authorized by the Federal Reserve Board but are not yet open for business.