Full text of Federal Reserve Bulletin : March 1922
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FEDERAL RESERVE BULLETIN (FINAL EDITION) ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON MARCH, 1922 WASHINGTON GOVERNMENT FEINTING OFFICE 1922 FEDERAL RESERVE BOARD. EX OFFICIO MEMBERS. EDMUND PLATT, Vice Governor. A. W. MELLON, Secretary of the Treasury, Chairman. Comptroller of the Currency. JOHN R. MITCHELL. Secretary. W. L . EDDY, Assistant ADOLPH C. MILLER. CHARLES S. HAMLIN. D. R. CRISSINGER, W. W. H O X T O N , W. P. G. HARDING, Governor. WALTER S. LOGAN, General Counsel H. PARKER WILLIS, Secretary. Directort Division of Analysis and Research. W. M. IMLAY, Fiscal Agent. M. JACOBSON, Chief, Division of Examination Reserve Examiner. II Statistician. E. A. GOLDENWEISER, Associate J. F. H E R S O N , and Chief Federal Statistician. E. L. SMEAD. Chief\ Division of Reports and Statistics. OFFICERS OF FEDERAL RESERVE BANKS. Federal Reserve Bank o— . f Governor. Chairman. Frederic II. Curtiss.. Philadelphia.. Cleveland Benj. Strong i R.L.Austin ! D. C. Wills i Caldwell Hardy. Richmond C. C. Bullen W. W. Paddock J. H. Case L. F. Sailer G.L.Harrison... E. R. Kenzel Chas. A. Morss. Pierre Jay Boston New York.. Deputy governor. George J. Seay Atlanta Joseph A. McCord.. Chicago Wm. A. Heath M. B. Wellborn J. B. McDougal St. Louis Minneapolis.. Wm. McC. Martin.. John H. Rich D.C. Biggs R. A. Young Kansas City.. Dallas San Francisco Asa E. Ramsay Wm. F. Ramsey... John Perrin J.Z. Miller, jr B. A. McKinney J. U. Calkins 1 2 Controller. W. Willett. L. H. Hendricks.i J. D. Higgins 1 A. W. Gilbart.» Leslie R. Rounds.* J. W. Jones.i 1 Ray M. Gidney. W. A. Dyer. H. G. Davis. Wm. II. Huttjr M. J. Fleming Frank J. Zurlinden C. A. Peple R. H. Broaddus8 A. S. Johnstone John S. Walden s L. C. Adelson J. L. Campbell C. R. McKay.. S. B. Cramer JohnH. Blair Georgo W. Norris E. R. Fancher Geo. H. Keesee. M. W. Bell. W. C. Bachman.i K. C. Childs.i J. II. Dillard.i D. A. Jones.1 0. J. Netterstrom.i A. H. Vogt.i Clark Washburne.i J. W. White. B. V. Moore. 0. M. Attebery W. B. Geery Frank C. Dunlop l S. S.Cook C. A. Worthington R. G. Emerson Wm. A. Day Ira Clerk 3 L. C. Pontious* Assistant to governor. Cashier. J. W. Helm. R. R. Gilbert. W. N. Ambrose. a Assistant deputy governor. MANAGERS OF BRANCHES OF FEDERAL RESERVE BANKS. Federal Reserve Bank ofNew York: Buffalo branch Cleveland: Cincinnati branch Pittsburgh branch Richmond: Baltimore branch Atlanta: New Orleans branch.. Jacksonville branch.., Birmingham branch.. Nashville branch Chicago: Detroit branch St. Louis: Louisville branch Memphis branch Little Rock branch... Manager. W. W. Schneckenburger. L, W. Manning. Geo. De Camp. A. H. Dudley. Marcus Walker. Geo. R. De Saussure. A. E. Walker. J. B. McNamara. R. B. Locke. W. P. Kincheloe. J. J. Heflin. A. F. Bailey. Manager. Federal Reserve Bank o— f Minneapolis: Helena branch Kansas City: Omaha branch Denver branch Oklahoma City branch Dallas: El Paso branch Houston branch San Francisco: Los Angeles branch Portland branch Salt Lake City branch Seattle branch Spokane branch I , R. E. Towle. ! j L. H. Earhart. C. A. Burkhardt. C. E. Daniel. W. C, Weiss. Floyd Ikard. :j C. J. Shepherd. Frederick Greenwood. , R. B. Motherwell. C. R. Shaw. W. L. Partner. SUBSCRIPTION PRICE OF BULLETIN. The FEDERAL RESERVE BULLETIN is the Board's medium of communication with member banks of the Federal Reserve System and is the only official organ or periodical publication of the Board. It is printed in two editions, of which the first contains the regular official announcements, the national review of business conditions, and other general matter, and is distributed without charge to the member banks of the Federal Reserve System. Additional copies may be had at a subscription price of $1.50 per annum. The second edition contains detailed analyses of business conditions, special articles, review of foreign banking, and complete statistics showing the condition of Federal Reserve Banks. For this second edition the Board has fixed a subscription price of $4 per annum to cover the cost of paper and printing. Single copies will be sold at 40 cents. Foreign postage should be added when it will be required. Remittances should be made to the Federal Reserve Board. No complete sets of the BULLETIN foj 1915,1916, 1917, or 1918 are available. in TABLE OF CONTENTS. General summary: Page. Review of the month. 261 Business, industry, and finance, February, 1922 271 Attitude of State Department toward foreign loans 282 Member bank acceptances at the close of 1921 283 Tobacco finance 285 Indexes of trade and production 292 Commercial credit practice of Japanese banks 296 Business and financial conditions abroad—England, France, Italy, and Germany 301 Argentine financial statistics 314 Official: Law department 318 State banks admitted to system 317 Fiduciary powers granted to national banks 317 Charters issued to national banks 317 Price movement and volume of trade: International wholesale price indexes—-United States and England 319 Comparative wholesale prices in principal countries 325 Comparative retail prices in principal countries 330 Foreign trade—United Kingdom, France, Italy, Sweden, Norway, Japan, and Germany 330 Indexes of industrial activity—England, France, and Germany 332 Foreign trade index 334 Physical volume of trade 335 Ocean freight rates 339 Report of knit-goods manufacturers of America 339 Retail trade 340 Wholesale trade 342 Commercial failures 317 Banking and financial statistics: Domestic— Discount and open-market operations of Federal Reserve Banks 342 Condition of: Federal Reserve Banks 347 Federal Reserve note account 354 Condition of member banks in leading cities 355 Bank debits '. 358 Operations of the Federal Reserve clearing system 362 Gold settlement fund 363 Gold and silver imports and exports 363 Money outside the Treasury and Federal Reserve System 364 Discount and interest rates in various centers 365 Discount rates approved by the Federal Reserve Board 364 Foreign exchange rates 366 Abstract of condition reports of member bank 371 Foreign— England, France, Italy, Germany, Sweden, Norway, and Japan 375 Condition of principal European banks of issue, 1913-1921 367 Charts: Index numbers of domestic business, 1919-1922 294 Index numbers of wholesale prices in the IJnited States and England 319 Index number of wholesale prices in the United States—constructed by Federal Reserve Board for purposes of international comparisons 320 Index numbers of wholesale prices in England 321 Movement of principal assets and liabilities of Federal Reserve Banks 347 Movement of principal assets and liabilities of member banks 347 Debits to individual accounts 358 Foreign exchange index 367 IV FEDERAL RESERVE BULLETIN VOL. MARCH, 1922. 8 REVIEW OF THE MONTH. With the return of the planting season, the Recurrence of question of agricultural credit agricultural prob- once more assumes a renewed lem. importance and significance. This question has naturally been prominent in current discussion during the past few months because of the continuance of the difficult conditions growing out of economic readjustment to which the farmers of the country have been subjected. These conditions, as noted on former occasions, have included the lack of adjustment of farm prices to costs of equipment and supplies which the farmer must purchase, the unsatisfactory "adaptation of the credit system to rural needs, and sudden changes and modifications in export demand, which have naturally tended to alter the economic position of the grower. Added to these have been the various banking problems growing out of the fact that the sudden shrinkage of prices had prevented the farming population in some parts of the country from liquidating their bank obligations as they otherwise would have done, so that at not a few points it was necessary during the past season or two for banks to carry over a substantial amount of the farmers7 current obligations which would ordinarily have been settled out of the proceeds of the crop year just closed. This has produced a substantial element of "frozen loans77 which it has been difficult for the farmer to liquidate, and which the banker was thus obliged to carry on the renewal basis for a period much longer than that which would ordinarily be considered sound practice. These conditions have given rise to renewed study of the agricultural credit situation, with a view to providing more fully for it through modifications or amendments in our existing body of banking legislation. Several important suggestions have been made and are now before the country for consideration. At the No. 3 same time the banks have had to face the problem of how to provide additional credit as needed for financing the new crop. In various parts of the country there has seemed to be danger that, because of the fact that the banks were already carrying considerable amounts of held-over loans, there might be an indisposition on their part to finance the planting of the new crop as freely as would be desirable. Uncertainty as to future prices of agricultural products is of course in no small measure responsible for such an attitude, but this fact itself emphasizes the question how to provide for the needs of agriculture on a safe and systematic basis. In these circumstances there has naturally been a search for remedies or Suggested rem- ^ ^ improvement of the r ©dies. . • . agricultural situation, liecommendations have been of many sorts and have included better and cheaper transportation, cooperative marketing, changes in the conditions of granting farm credit, higher customs duties, and others. Congress has already acted upon a cooperative marketing proposal, but farm credit legislation has offered a more difficult issue as well as one which calls for much more careful adaptation or adjustment to other economic factors in the situation. In the discussion thus far carried on, however, certain suggestions stand clearly out. Among these is the proposal of more liberal bank lending policies and especially of more liberal bank rediscount facilities. These are urged in the belief that there has been an undue degree of conservatism on the part of the banks in dealing with agricultural applications or that the conditions which they have fixed as regards duration of loans or eligibility of paper have been unduly narrow. Another type of suggestion has been founded upon the belief that new means of reaching the public or of assisting the public to reach the banks were called for. These ideas have rested upon the belief that, 261 262 FEDERAL RESERVE BULLETIN. as things stand, with barely one-third of all banks members of the Federal Reserve System, it was not feasible for the resources of the system to be as widely and generously distributed as would be needful if they are to reach the ultimate borrower. On the other hand, it has been supposed that the intervention of some new type of institution lending direct to the people or the expansion of the powers of the land banks so that they could make liberal short-time loans might be of assistance. Another type of suggestion is not based upon a desire to modify standards of eligibility or to change the machinery of rediscounting, but it is rather designed to alter the economic situation of the reserve system in relation to farming by calling upon it to provide means for carrying agricultural products in warehouses. All these ideas and sundry variations of them have been freely considered both by official and unofficial organizations, with the result that certain concrete suggestions have taken definite form. Of such suggestions those put forward by the Joint Commission of Agricultural Inquiry, the Federal Advisory Council, and the President's Agricultural Conference have been directed along somewhat parallel lines, although the views of the latter organization have been far more radical in their proposals for innovations upon existing credit conditions than have those of the other bodies. The Joint Commission of Agricultural InWork of the q u i r y> to which reference has Joint Commission just been made, was appointed of Agricultural In- for the purpose of investigating quiry * " the causes of the present condition of agriculture/' and during the past summer held hearings at which extensive agricultural information was secured. This related to the bearing of the prices of agricultural commodities on those of other commodities, the adequacy of the available facilities for financing the production and sale of agricultural commodities and the difficulties connected with their transportation and distribution. I n P a r t I I of its report (Credit), the commission took the view t h a t the banking machinery of the country was in certain respects not well adapted to the farmers 7 requirements. B u t the com- MABCIT, 1922. mission made it clear that it attributed the disabilities under which not only farmers b u t the rest of the community have been laboring as due only " i n a m e a s u r e " to credit restrictions and limitations. The pressure of liquidation, it was stated, " w a s greater upon the agricultural sections because of the peculiar conditions surrounding the marketing of agricultural crops, and as a result of the fact that the crops of 1920 had been produced at costs greater t h a n those applicable to any other crops in the history of the country. These hardships were also greater because the prices of agricultural commodities declined to a greater degree and with greater rapidity than the prices of other commodities." This relatively rapid decline was not, however, attributed to a greater pressure for liquidation exerted b y the banks in the agricultural sections of the country. On the contrary, the evidence showed t h a t liquidation of bank loans and discounts in the agricultural sections of the country was less than in the industrial sections, and, in fact, t h a t b u t little actual liquidation of loans and discounts had occurred in such agricultural districts taken as an aggregate up to May, 1921. The trouble was due not to excessive liquidation, but to inability in many cases to liquidate at all, because agricultural products were selling at prices whose proceeds were not sufficient to enable farmers to meet debts incurred in the course of production. The reason for this situation is not hard to Reason for find- Foodstuffs are peculiarly disproportionate subject to the vicissitudes of the price declines in market. A relatively slight suragriculture. p j u s w j ] | result in a disproportionately sharp drop in prices. On the contrary, scarcity in relation to demand will bring about a sharp rise. I t was natural, therefore, that during the war prices of foodstuffs should advance out of relation to m a n y other prices, even under such regulation of distribution and of selling prices as was enforced. Following the war the great increase in foreign demand for American products, coupled with active domestic buying, gave an enormous impetus to the rise in agricultural prices. As a result, at the peak of the domestic price inflation, the price index for agricultural MARCH, 1922. FEDERAL RESERVE BULLETIN. products, according to the index of the Bureau of Labor Statistics as recomputed by the Federal Reserve Board, registered 314, while the all-commodity index reached 272. Following the general price decline, the price index of agricultural products dropped to 122 in July, 1921, while that of all commodities fell to 148 in the same month, the lowest point since the conclusion of the war. With prices for foodstuffs thus subjected to sharp and sudden fluctuations it is very necessary to develop credit machinery to enable the farmer to carry such surpluses within reason. The farmer, however, usually expects to sell for cash and to leave the matter of distributive financing to intermediaries, with the result that the full force of price declines falls primarily upon him. I t is not surprising, therefore, that the recent heavy declines in prices led to appeals from large numbers of farmers for credit in order to avoid forced sales. Not only was the banking machinery of the country not equipped to take care of many of these appeals, but they often represented demands for credit of a sort not acceptable to commercial banks from the point of view either of the time element or of the t3^pe of security tendered. Losses have undeniably been severe, as well as unavoidable, but preparations for the new crops have nevertheless gone forward ia orderly fashion, and a recent rise in the prices of leading agricultural, products testifies to a relative improvement in the economic status of the farmer, since commodit}^ prices in general have remained fairly stead}'. As a result of its deliberations, based upon a Legislation pro- review of the conditions just posed by Joint indicated, the Joint CommisCommission. Agricultural Inquiry sjon of lately embodied in a bill subsequently introduced into both Houses of Congress its proposals for permanently improving the credit facilities directly available to farmers and filling in the " g a p between the short and long time credit furnished by banking agencies." The bill in question provides for the establishment of a farm credits department in each Federal land bank whose function it will be to provide for an intermediate type of farm credit running from six months to three years. Each credits 263 department will be empowered to discount for any national bank, State bank, trust company, incorporated live-stock company, or savings institution, with its indorsement, notes, or obligations whose proceeds have been used for agricultural purposes or for raising, breeding, fattening, or marketing live stock. Loans may also be made directly to cooperative associations of agricultural producers, if such loans or obligations are covered by warehouse receipts securing the products. Such loans or discounts must have a maturity at the time they are made or discounted by the Federal land bank of not less than six months or more than three years. Kates of interest and discount are subject to the approval of the Federal Farm Loan Board. The legislation proposed also provides for the sale of debentures with a maximum maturity of three years, secured by cash or by notes or other obligations against which advances have been made. Each farm credits department would have a capital of $1,000,000 subscribed by the Government before it exercises any of the powers granted. Section 204 of the proposed bill is of special importance in that it extends the rediscount powers of the Federal Reserve Banks to notes or other obligations representing loans of the type just described, with the proviso that at the time of rediscounting such notes or obligations they shall not have a maturity in excess of six months. Section 206 also permits any Federal Reserve Bank to buy and sell debentures and other obligations issued by a Federal land bank, but "only to the same extent as and subject to the same limitations as those upon which they may buy and sell farm-loan bonds. 77 Not long after the work of the Joint Commission of Agricultural Inquiry had Attitude of Adbeen brought to a conclusion, visory Council. members of the Federal Advisory Council filed with the President (Jan. 12, 1922) a memorandum relating to some problems affecting the Federal Reserve System, in which they took occasion to speak of the general needs of the agricultural community. They then referred to the possible danger of special opportunities offered to special classes in connection with the making of lonna under peculiarly favored conditions, 264 FEDERAL RESERVE BULLETIN. and urged that in such an event the Federal Reserve System would not "be kept inviolate as a reserve system/ 7 since it would not be in a position to "always restrict its investments to those having a reasonably short maturity/ 7 while it would "incur the risk of immobilizing its funds in credits that conceivably may become frozen.77 Because of these apprehended dangers the Council affirmed its belief that u whatever relief Federal Reserve Banks may furnish must be granted through the inter mediary and under the responsibility of banking channels. If the existing country banking machinery is inadequate in certain sections, it ought to be strengthened and supplemented, but there should always be a 'buffer7 between the borrower and the Federal Reserve Bank.77 In this same memorandum the Advisory Council expresses its hearty indorsement of the proposal contained in the report of the Joint Commission of Agricultural Inquiry to extend the activities of the Federal farm loan system in such a way as to make provision for affording longer credit accommodation to farmers than afforded by existing banking facilities. It is conceded that although the Federal Reserve Banks have been generous in the amount of credit accommodation extended to the farming communities, and although contraction of loans has been confined to the nonagricultural sections, it is nevertheless true that the machinery of agricultural credit is not yet complete. It is pointed out that the agricultural sections are largely served by small member banks with limited operating power, and by nonmember State banks, and furthermore that even where banking facilities are available the credits extended to the farmer are not granted for a period of time sufficiently long to meet his needs. In a letter addressed to the chairman of the Attitude of the Committee on Banking and Federal Reserve Currency of the United States Board. Senate (Jan. 26, 1922), the Federal Reserve Board has approved the provisions for enlarging the powers of the Federal farm loan banks in the way provided in the pending bill, embodying the recommendations of the Joint Commission of Agricultural Inquiry. The Board is of the opinion that "there is a need for agricultural credits of an intermediate MARCH, 1922. type running from six months to three years for production and marketing purposes. The. farmer7s turnover normally requires approximately 12 months, and in the live-stock industry the turnover may require as long as three years.77 It is believed by the Board that banks are not disposed to lend on such long terms the amounts required to meet the needs of agriculture unless they are in a position to rediscount such paper in emergencies. The Board is of the opinion that by restricting rediscount to paper having a maturity not in excess of six months, it will not only be possible to encourage the granting of these intermediary credits by banks, but that it can be done without lessening the liquidity of the paper held by the Federal Reserve Banks and the elasticity of the Federal Reserve note currency, which is based upon and secured by the paper so held. The assigned reasons for granting this rediscount privilege to the land banks are based upon the fact that seasonal needs are more or less concentrated and that unless the Federal land bank system were prepared to carry unutilized resources for a considerable part of the year it would be unable to respond to the sudden increases in demands for loans that would be made upon it at certain periods. If, however, paper held could be rediscounted at such times with the Federal Reserve Banks, the farm loan system would be in a position to secure additional funds instantaneously and in the precise amounts required. The reason why this provision for rediscounts should not be made by direct application to the Federal Reserve Banks is fairly clear, in view of the nature of the Federal Reserve System and the particular functions assigned to it. The problems of agricultural credit are of a special sort, and for that reason it has been regarded as best that the new type of loan should be developed as an adjunct of the Federal farm loan system already engaged in making long-time loans to agriculture. In view of the importance of the agricultural credit situation at the present Work of the time, the conclusions arrived at f r a l C ° n ^ t h e Agricultural Conference, which convened in Washington; on January 23, are of noteworthy importance. The conference was called for the purpose of MARCH, 1922. FEDERAL RESERVE BULLETIN". considering the causes and remedies of agricultural depression, and was a body of national scope and significance, consisting of representatives not only of agriculture but of allied industries, and of transportation and financial interests as well. The purpose of the conference, as expressed by President Harding in his letter to the Secretary of Agriculture authorizing the latter to call such a conference, was indicated as twofold—first, "to give consideration to our present-day difficulties, which admittedly are serious and need effective attention," and, second, "to include a survey of the future, in an effort to determine upon general policies, having in view the maintenance of production, the greatest possible use and at the same time the conservation of our agricultural resources, and the more complete coordination of our agricultural, manufacturing, and general business interests." Among the many resolutions passed by the conference those relating to the need for better facilities emphasized the inadequacy of the existing banking machinery to meet the needs of the farmer for short-time credit accommodation. The proposals for correcting this situation put forward by the conference went beyond those embodied in the pending legislation growing out of the investigation of the Joint Commission of Agricultural Inquiry. Not only is the suggestion made that the Federal Reserve Banks should be authorized to rediscount notes and buy and sell debentures of any government agency which may be established for the purpose of making loans running from six months to three years to banks, live-stock associations, or cooperative groups of producers, but no restriction is imposed which would limit such rediscounts by Federal Reserve Banks to paper within six months of maturity as is the case in the bill now before Congress. It is further urged that the Federal Reserve Act be amended to give the Federal Reserve Banks the authority to buy and sell, with or without the indorsement of member banks, notes secured by warehouse receipts covering readily marketable, nonperishable agricultural staples or live-stock paper of the kinds and maturities now eligible for rediscount under the act. Under the pro- 265 visions of the commission bill, investments in debentures or other obligations would be confined to those issued by the Federal land banks against the security of loans made by them to banks and cooperative associations, with the further limitations imposed by the Federal Reserve Act upon the buying and selling of bonds. The resolutions reported by the committee on credit of the Agricultural Conference would, if followed, amend the Federal Reserve Act so as to give an opportunity for the Federal Reserve Banks to make direct loans to agriculture. It should bo recognized that such a proposal looks toward putting the Federal Reserve Banks into the position of competitors of the member banks whose reserves they carry, since it would involve an extension of the open-market operations of the reserve system beyond the limited dealings in bills of exchange and limited purchases of securities engaged in under the act as it now stands. Moreover, it would involve the adoption of a policy of legislative favoritism, since no other classes of borrowers arc given an equal opportunitjr to utilize directly the resources of the system. The Federal Reserve Banks in such case would cease to occupy the position which they have come to hold in the general banking system, as already noted by the Federal Advisory Council in the memorandum recently submitted to the President of the United States and referred to above. It may well be hoped that legislation of the Agricultural type urged by the commission credit and inter- and the Board will provide est rates. more abundant credits for periods of time better suited to the farmer's needs; and it is also to be expected that the new credit machinery will aid in bringing down farm-loan interest rates. In its annual report for 1921 the Federal Reserve Board publishes figures showing the marked discrepancies between rediscount rates and the maximum rates charged to the public by certain member banks during December, 1921. In some instances these latter rates have gone as high as 12 per cent, with rediscount rates at 5 per cent. It should be said, however, that such a situation is not peculiar to the districts in the less well-developed sections of 266 FEDERAL RESERVE BULLETIN. the country, but appears to be quite general. Certainly the new legislation will be an aid to the reduction of high interest rates to the extent that it brings about better standardization and gives a better rating to paper secured by agricultural products. The data furnished by the Board under this head may be briefly presented as follows: R a t e s charged b y member banks (per cent). Rates charged by Federal Reserve Banks (per cent). Federal Reserve District. | Margin j between I average j rates ; charged | by I member I banks i and i rates i charged i by Federal ' Reserve Banks. Boston New York .. Philadelphia Cleveland. Richmond Atlanta Chicago. St. Louis... Minneapolis Kansas City Dallas San Francisco All districts ; 12.0 j 4.00 I 6.27 1 Average rate. Discount rate was reduced from ol- to 5 per cent on Dec. 10. * Average rate. Discount rate was reduced from o£ to 5 per cent on Dec. 19. s Average rate. From manjr points of view the question of Proportion of agricultural credit really reagricultura! loans duces itself to the share or perto total loans. centage of available loanable funds obtainable or obtained by farmers. Independent investigations made during the past year by the Department of Agriculture and the Federal Reserve Board, with a view to determining just what percentage of the total loans of tho banks of the United States was represented by advances to agriculture, gave results substantially similar, although the methods of arriving at estimates were different. The Department of Agriculture sent out a questionnaire to over 30,000 banks, receiving returns from about 45 per cent of that number. From these questionnaires it was determined that personal and collateral loans to farmers constituted 13.3 per cent and farm mortgage loans about 5 per cent of all MAIICH, 1922. the loans and discounts of the reporting banks. The statistics upon which the estimates were based were obtained for December 31, 1920. The Federal Reserve Board attempted to estimate loans on the basis of the location of reporting member banks, as the nature of the loans made by the banks was not ascertainable from their reports. Banks were classified as agricultural, semiagricultural, and nonagricultural, according to whether they were located in counties whose products in terms of value were at least 80 per cent agricultural, from 50 to 80 per cent agricultural, or less than 50 per cent. On this basis loans in agricultural counties as of April 28,1921, appeared to constitute 17 per cent of the total member bank loans, while they amounted to 8 per cent in semiagricultural counties. Given the fact that during the summer and early fall harvesting and crop moving demands had to bo met, while liquidation of old loans was on a limited scale, it is highly likely that the proportion of agricultural loans to total loans rose rather than fell after the date of inquiry. Certainly such evidence as is available points to the continued existence of a considerable mass of unliquidated agricultural paper in many sections of the country, and the contraction that has occurred since the date of this investigation appears to have been very largely confined to the large cities and industrial sections of the country. I t would seem then that in the agricultural regions themselves, farmers during the past year or two have been able to count upon an accommodation possibly equal to 15 to 20 per cent of all advances on current account, with an additional 5 per cent for mortgage loans. How much larger a proportion of our loanable funds could or should be assigned to farmers through the new credit machinery is worthy of discussion. In studying the general question of bank Misunderstand- advances to agricultural boring of banking rowers, it is well worth noting policy, that considerable misunderstanding exists. There is a prevailing opinion that farmers are unable to get accommodation at their banks because the latter are cut off by Federal Reserve Banks. I n fact, the MARCH, 1922. FEDERAL RESERVE BULLETIN". excuse is frequently given by bankers who seek to curtail credit to farmers that they are obliged to do so because their loans have been called or because they have otherwise been obliged to make payment by their Federal Reserve Bank. As has often been explained in the past, this is usually merely a means of evading responsibility for refusing to make a loan, and is frequently nothing more than a means of clothing a refusal in what is supposed to be more acceptable language. As the Board itself notes in its annual report: Banks, as a rule, do not like to admit to customers that they are short of loanable funds, nor do they wish to arouse enmity in declining to make loans or in asking for a reduction of a loan already made. There are doubtless some bank officers who are able frankly to decline an application for a loan in a way which leaves no sting, but not all bank officers have such tact. Some are frank enough, but their bluntness hurts the feelings of the wouldbe borrower. It is not unusual, therefore, for some bank officers in declining loans to seem to evade direct responsibility. Formerly the board of directors was made useful in this capacity. In recent years, however, bank officers have found in the Federal Reserve Board or the Federal Reserve Bank a much more satisfactory buffer than a local board of directors. In many cases, in small towns particularly, banks have found it convenient to pass the responsibility on to the Federal Reserve Bank or the Federal Reserve Board, and have stated to a borrower or would-be borrower that they would like to grant the extension asked for or make the loan desired, but the Federal Reserve would not permit it. Such a procedure has a tendency to relieve the situation as far as the local bank is concerned, but it is certainly unfair to the Federal Reserve System. This evasion of responsibility has subjected the Federal Reserve Banks to a great amount of unjust criticism and has given the public a wrong impression of the authority and attitude of the Federal Reserve Banks and the Federal Reserve Board. A similar misconception exists in most minds with respect to "deposits" which member banks are obliged to keep with the Federal Reserve Banks. Some regard this as analogous to the 20 per cent deposit "balance" required by many commercial banks of their customers. There is no analogy of this sort, but on the contrary the "balance" kept by a member bank with the Federal Reserve Bank is merely its actual reserve against outstanding liabilities which the law requires it to maintain there for the sake of safety and for the purpose of enabling it to meet demand liabilities when required to do so by its customers. 267 Closely connected with the credit question is Export situation that of export demand, it being in relation to realized that good foreign deagriculture, mand is necessary to good prices and hence to liberal credit. The economic situation in which the farmer now finds himself has of late frequently been ascribed to the difficulty of marketing his surplus products abroad. There is no doubt some truth in such statements, but an examination of the official foreign trade statistics shows at once that exports of most agricultural products were better maintained during 1921 than other classes of goods, judged either according to values or actual quantities exported. While exports of all commodities declined in value by 45.5 per cent in 1921, as compared with the previous year, the value of foodstuffs in crude condition and food animals decreased but 24.6 per cent. Judging by the Board's foreign trade index, the quantities of all classes of exports taken as a whole were not far from equal in the two years, 1920 and 1921. Agricultural products, on the other hand, were exported in somewhat greater volume in 1921 than in the year previous, as a comparison of the quantities of the principal agricultural exports will show. This means, of course, that average export prices of farm products declined during this time more than did the total values of agricultural exports. As an illustration of what has been taking place, there may be mentioned the case of raw cotton, exports of which increased slightly, from 3,179,000,000 pounds in 1920 to 3,339,000,000 pounds in 1921, but the value of which in the same years fell from §1,136,000,000 to $534,000,000. So, too, the volume of wheat exports increased from 218,000,000 bushels in 1920 to 280,000,000 bushels in 1921, while the corresponding values dropped from $597,000,000 to $433,000,000. In the first of the following tables corn and wheat have been selected to illustrate the monthly movement of this class of exports during the past two years and also in 1913. The different trend of export values is shown in the second table, which gives the monthly values of the group of unmanufactured foodstuffs (including food animals) and of raw cotton exported from the United States in 1913, 1920, and 1921. 268 FEDERAL RESERVE BULLETIN. MARCH, 1922. tal of foreign countries, have been the chief topics of anxiety throughout the export credit [In thousands of bushels.] discussion. Indeed, most of the foreign trade credit plans which were evolved subsequent to Corn. Wheat. the Brussels financial conference were intended Month. to facilitate the importation of raw materials 1920 1921 1913 1913 j 1920 1921 I from the United States and from other raw i 2,211 :: 5,436 11,317 8,441 | 8,480 21,345 material producing countries, rather than to January 1,791 8,144 12,307 4,357 i 4,938 18,469 February 1,843 i 13,373 10,109 4,569 I 6,939 14,599 March 1,147 , 10,426 5,596 6,590 ! 4,176 17,641 develop any new and distinctively export credit April 772 , 8,535 1,252 7,159 | 10,864 25,932 ideas. May I t was recognized that the demand for 743 835 ' 11,835 5,661 : 12,846 25,235 June 926 1,145 i 14,973 9,404 ! 23,838 24,842 raw materials takes care of itself when there is July 745 781 13,652 24,3(6 27,691 58,537 August.. 670 11,971 . 30,771 30,842 a demand for finished products, and that the September 949 ' 18,600 404 7,434 I 35,803 18,362 October 1,417 i 9,217 * 444 3,851 ! 26,035 13,846 surest way to promote sales of and payment for November 1,829 , 4,622 773 5,727 I 25,903 10,451 December 3,041 : 10,243 raw materials is to create a market for manuTotal 45,287 17,761 ' 129,055 1 99,509 ; 218,287 279,949 i ! i factures produced from them. Both the English Government export-credit plan and the VALUE OF C H I E F AGRICULTURAL EXPORTS FROM THE various plans of continental origin thus took U N I T E D STATES. definite form primarily as means of promoting [In thousands of dollars.] manufacturing industry. The inference to be drawn from these factors is that increase in the Foodstuffs in crude condiCotton, unmanufactured. tion and food animals. demand for staples by the manufacturing counMonth. 1920 1921 tries is regarded as most likely to be favorably 1913 1920 1921 1913 Iaffected by the growth of manufacturing and 1 194,973 - 60,899 January i 20,827 ' 44,403 i 75,452 58,405 60,748 33,903 135,950 44,333 by the application of credit in the latter direc31,695 February ; 16,310 ! 171,899 27,133 March I 13,907 ! 49,820 I 52,712 23,725 : Doubtless the increase of agricultural 117,536 : 20,544 tion. 13,210 I 38,671 i 50,105 33, 727 Anril 59,302 28,621 77,500 ! 30,640 11,007 j 67,805 May 62,779 13,792 30,519 exporting will depend largely on the improve50,141 I 9,015 j 64,305 ! June 8,385 44,152 i 31,796 12,915 ! 101,148 ! 58,522 July 105,871 16,519 28,052 30,361 ment of international trade in general. The August | 26,731 104,233 , 65,746 41,436 ! 43,233 September... j 14,842 108,174 ; 107,381 91,247 : 91,028 future of agricultural exports, while of course October j 11,765 : 118,684 ! 40,205 91,138 ! 64,255 Novem b e r . . . | 8,879 i 94,230 I 30,052 103,340 81.953 92,385 i 61,774 influenced, as usual, by the quantity of compet9,977 I 91,823 ! 28,737 , December 575,490 i 1,136,409 ! 534,242 ing articles produced abroad, will depend in no Total . . J (59, 588 917,991 092, ] 06 small degree upon the restoration of normal business conditions, with larger manufacturing, The conclusion which the facts would seem to warrant, therefore, is not that there has been hence demand for raw materials, and larger ema falling off in the foreign demand for American ployment for labor, hence stronger buying of farm products, but rather that the world-wide foodstuffs. In connection with the questions discussed fall in prices has resulted in giving the farmer Index of busi- above, the Board's usual induring the past year a smaller monetary return than he received in 1920 for a greater quantity ness conditions, dexes of current production and marketing conditions are of interest. Agriof goods shipped abroad. The change in point of view which has led cultural prosperity is naturally closely interwithin recent months to less- woven with satisfactory conditions in other Nonagricnltnral - t h e m h a s i s l a i d branches of industry, for the latter determine & export credits. _. r . . , •r, export credits is m part the the extent of the demand for the farmer's prodresult of study of foreign experience. The ucts. These indexes show increased activity export credit schemes instituted abroad have in January as compared with December in been thus far primarily plans for facilitating several leading industries, notably steel and the shipment of goods representing a fairly textiles. On the other hand, however, the advanced stage of production. Manufactured heavy marketing season for several of the goods, representing the product of labor and principal crops has passed, although corn is capital in competition with the labor and capi- moving in large volume. Most of these prodEXPORTS OF CORN AND W H E A T FROM T H E U N I T E D STATES. ucts have moved at distinctly satisfactory prices, and trade in the agricultural regions, both wholesale and retail, has tended to be benefited accordingly. [000 omitted.] i January, 1921. January, 1922. December, 1921 I Total. Receipts of live stock at 15 western markets (head) 5,667 Receipts of grain at 17 interior centers (bushels) 98,732 Sight receipts of cotton . (bales) I Shipments of lumber j reported by three associations (million | feet) Bituminous coal production (short tons).. Anthracite coal production (tons) Crude petroleum production (barrels) Pig iron production (long tons) Steel ingot production (long tons) Cotton consumption (bales) Wool consumption (pounds) RelaRelaRelative. Total. tive. Total. tive. 40,270 7,410 5, 114 90.8 4,039 100 97.265 98.5 85,013 865 75.0 1,484 639 71.6 81.9 100 ; 37,600 ! 93.4 | 30,975 76.9 8,454 41,957 110. 5 68.3 43,326 ' 114.1 100 2,416 100 1,639 67.8 | 1,649 2,203 100 1,593 72.3 1,427 61.8 512 139.9 61,283 205.6 366 100 527 I 143.9 100 j 61,192 205.3 [In thousands of dollars.] Imports. Aug. 1,1911, to Dec. 31,1918 Jan. 1 to Dec. 31,1919 Jan. 1 to Dec. 31, 1920 Jan. 1 to Dec. 31,1921 Jan. 1 to Jan. 31,1922 1 Exports. Excess of imports. 1,776,616 76,534 417,068 691,267 26,571 705,210 368,185 322,091 23,891 863 1,071,406 1291,651 94,977 667,376 25,708 2,988,056 1,420,240 1,567/816 Excess of exports. Net imports of silver during January totaled $2,519,000, as compared with net exports of Excess of exports. Imports, i Exports. Aug. 1,1911, to Dec. 31, 1918 Jan. 1 to Dec? 31,1919 Jan. 1 to Dec. 31,1920 Jan. 1 to Dec. 31,1921 Jan. 1 to Jan. 31,1922 114.1 100 '. 6,258 ; 84.5 ' 37,959 29,807 [In thousands of dollars.] 128.6 712 j 79.7 $1,629,000 for the preceding month. Mexico furnished over 58 per cent of the $6,496,000 silver imports for the month, the remainder coming mainly from Canada, Germany, Peru, and Chile. Of the silver exports for the month, amounting to $3,977,000, over 40 per cent was consigned to China and about 50 per cent to the other countries in the Far East. Net exports of silver since August 1, 1914, totaled $440,742,000, as may be seen from the following exhibit: 86.1 100 100 1,154 100 During January, 1922, the net inward movement of gold totaled $25,708,Gold and silver 000, compared with a net inmovements. ward movement of §29,523,000 for the month of December, 1921. England, Sweden, France, and Denmark furnished $17,776,000, or about 67 per cent of the $26,571,000 of gold imported during January. In addition large gold imports for the month are credited to Canada, British Oceania, and Colombia. Gold exports during the month totaled $863,000 and w^ere consigned chiefly to Mexico, Spain, Hongkong, and Canada. Net imports of gold since August 1, 1914, totaled $1,567,816,000, as*may be seen from the following exhibit: Total 269 FEDERAL, RESERVE BULLETIN. M A R C H , 1922. Total. 1 203,592 89,410 88,060 63,242 6,496 483,353 239,021 113,616 51,575 3,977 450,800 | 891,512 ' ! ! ! i 279,761 149,611 25,556 111,667 12,519 440,742 Excess of imports. Further reduction in the volume of loans and discounts, more than offset, The banking however, by increases of insituation. vestments in Government securities, largely United States Treasury notes, is indicated by the weekly bank statements of over 800 member banks in leading cities for the period from January 18 to February 15 of the present year. Although the bill holdings of the Federal Reserve Banks show a more than commensuarate reduction, only moderate decreases are shown in their note and deposit liabilities. A moderate rise in the reserve ratio, from 77.2 to 78.1 per cent, is due largely to the gain in gold held by the Federal Reserve Banks. As against a further reduction of $28,000,000 in loans secured by Government obligations, the reporting banks7 loans secured b}^ corporate obligations show an increase for the period of $19,000,000, while commercial loans proper declined by about $75,000,000. Under date of February 1, 1922, the Government allotted over $600,000,000 of Treasury notes, accepting in part payment about $200,000,000 of Victory notes. The effect of this operation on the status of the member banks is seen in an increase of $247,000,000 in their holdings of Treasury notes and a decrease of $48,000,000 in their holdings of Victory notes. During the following week the banks distributed substantial amounts of newly issued 270 FEDERAL RESERVE BULLETIN. Treasury notes, so that their holdings of Government securities at the close of the period show a net increase of $162,000,000. Total loans and investments of the reporting member banks on February 15 aggregated $14,684,000,000, an increase of $73,000,000 for the four-week period. Aggregate borrowings of the reporting institutions from the Federal Reserve Banks show a further decrease during the four weeks from $468,000,000 to $378,000,000, or from 3.2 to 2.6 per cent of the banks' combined loans and investments. Of the total discounts of all Federal Reserve Banks, the amount discounted for the reporting banks, i. e., member banks located in the larger cities, constituted 48.1 per cent on February 15, compared with 51.2 per cent four weeks earlier and 78.1 per cent about a year ago. A general idea of member bank operations during the four weeks under review may be had from the following exhibit: REPORTING MEMBER BANKS. [In millions of dollars. Date. Loans Number of reporting , banks. i Jan.18.. Jan. 25.. Feb.l.. Feb. 8 . . Feb. 15. 1 800 ' 801 | 806 ! 807 ; 807 ! Redis- and investments.1 with F.R. Bank. 14,611 I 14. o31 i 14,708 I 14,639 j 14,68-1 I (3+2). 468 •109 -100 395 378 3.2 2.8 2.7 2.7 2.6 j demand deposits. 10. 332 10)271 10.298 10,236 10,321 Including rediscounts with Federal .Reserve Banks. Federal Reserve Bank figures which cover the four-week period between January 25 and February 21 show further liquidation of discounted bills aggregating $128,900,000, a nominal reduction in the holdings of acceptances, a decrease of $16,000,000 in Pittman certificates, and an increase of $62,500,000 in other Treasury certificates, largely held by the Boston, New York, Cleveland, and Chicago reserve banks. During the period under review the Federal Reserve Banks increased by $58,500,000 their investments in United States bonds and notes, through purchases of Victory notes and newly issued Treasury notes, while their total earning assets show a decline of $24,100,000. Reserve deposits fluctuated within a minimum of MARCH, 1922. $1,652,300,000 at the beginning of the period and a maximum of $1,744,400,000 on February 15, while Government deposits, after reaching a high total of $114,700,000 on February 1, show a gradual decline to $63,900,000 at the close of the period. The large return movement of Federal Reserve notes may be said to have terminated, though the February 21 total of Federal Reserve note circulation, $2,173,500,000, shows a decrease for the four weeks of $10,500,000, compared with a decrease of $39,000,000 for the corresponding period in 1921. In addition there is shown a loss of $20,600,000 in reserve cash other than gold, composed largely of greenbacks and silver certificates of the smaller denominations issued to meet the circulation demand for the smaller bills. Gold holdings of the Federal Reserve Banks show a further increase of $42,600,000, and at the close of the period reached the record total of $2,946,800,000. In addition to this gain some shift in the distribution of gold reserves through the gold settlement fund is noted. Chicago reports the largest increase in gold holdings for the period, viz, by $38,200,000, Atlanta reports an increase of $32,000,000, while smaller increases, aggregating $29,900,000, are shown for the Minneapolis, Kansas City, Dallas, and Richmond banks. All the four eastern banks show decreases in their gold reserves for the four weeks under review, the largest decreases being shown for Boston, by $28,000,000, and for New York, by $22,100,000, while smaller decreases in gold reserves aggregating $7,400,000 are shown for the Federal Reserve Banks of Philadelphia, Cleveland, St. Louis, and San Francisco. Principal weekly changes in the condition of the Federal Reserve Banks during the period under review are shown in the following exhibit: FEDERAL RESERVE BANKS. [In millions of dollars.] Bills discounted. Date. Cash SecuredS. by U. reserves. Government obliga- All other. F.R. Total notes in Reserve deactual ratio. posits. circulation. tions. • Jan. 25 Feb.l Feb. 8 Feb.15 Feb. 21 3,058.9 3,061.5 3,062.6 3,075.9 3,080.8 357.9 361.1 361.9 327.6 282.0 492.3 476.7 461.6 458.0 439.3 1,778.8 ! 2,184.0 \ 1,840.5 1 2,178.1 ! 1,858.5 ! 2,166.2 j 1,857.5 2,170.0 ! 1,772.2 2,173.5 ! 77.2 76.2 76.1 76.4 78.1 MARCH, 1922. FEDERAL RESERVE BULLETIN. 271 BUSINESS, INDUSTRY, AND FINANCE, FEBRUARY, 1922. During the past month improvement of conditions in several basic industries has furnished a more hopeful prospect for the trade of the coming months. This better outlook has in some measure been offset by labor and other difficulties in the textile industry, which have resulted in reduced activity in that branch of business. Fluctuations in the price of raw materials have subjected the textile trade to still further difficulty, while in that industry, as well as in others, the lack of forward orders has made it difficult to plan policies far in advance. Fairly good conditions are reported in the shoe and leather industry, although improvement has been largely confined to New England. There has been distinct increase in the activity of the plants of the United States Steel Corporation as well as some increase in the activity of independent mills. Iron and steel prices have, however, tended to decline, or at best to hold their own, rather than to advance. In the chemical industry business activity has been given a severe setback as a result of uncertainty as to the future. In the nonferrous metals, especially copper, there has been a distinct increase in production with the reopening of mines, which had been shut down for a long time past. The net outcome of these changes has been to diminish the irregularity and unevenness noted in the movement of industry during 1921. Textiles and allied lines which have been far in advance of others are losing their relative momentum. The evening tendency thus evidenced by current readjustments is reflected in the fact that the Board's price index remains unchanged at 138. The significance of this apparent stability of the price situation is not disclosed until account is taken of the fact that there have been noteworthy advances in prices of many agricultural products during the month. The effect of these advances would have been to raise the general price index had they not been offset by corresponding price declines in other lines of industry. The readjustment process, it would appear, has now definitely reached the stage of interindustrial price revision. The advance in value of agricultural products has tended to create conditions materially facilitating both the liquidation of loans at banks and the rapidity of movement of products to market. The more satisfactory marketing and price conditions have not only extended to grain but have also included tobacco and other products. Early crop reports from the southwestern grain regions have not been altogether reassuring. The long-continued slackness of employment and past uncertainty as to agricultural prices have produced an effect upon trade activity, with the result that both wholesale and retail trade indexes are disposed to show recession of buying in most parts of the country save for seasonal activity in special lines, such as dry goods. Although betterment of retail demand has been reported in the farming districts, the effect of higher agricultural prices has not yet brought about any considerable modification of conditions. It should, however, be remembered in this connection that the farmer had already largely disposed of his last year's crop. The volume of employment (another important factor in influencing demand for goods) shows but little modification, although figures reported by the United States Employment Service indicate a slight advance. This condition, however, holds good chiefly in the population centers. Strikes in the textile region of New England as well as labor troubles elsewhere have during the latter part of the month of February tended to aggravate the unemployment situation. Continued improvement is noted in building operations. As compared with last year the volume of building is very much larger, January permits being more than double what they were a year ago. This is resulting in an increased demand for steel and iron products as well as for other materials. It has also increased the demand for labor in parts of the country where the surplus of unemployment would otherwise have been more considerable. Financially the month has shown continued reduction in the volume of credit required by the community. Portfolios both of reserve and member banks show still further reduction, while interest rates have remained fairly stable at the levels already reached. Foreign exchange has shown a decidedly stronger tendency, the highest levels for a long time past having been reached in sterling, francs, and some other European currencies. Business failures are on a materially higher level than in 1921, while the month of February, as previously predicted by commercial agencies, also shows an increase in commercial failures as contrasted with January. 272 FEDEBAL RESERVE BULLETIK. AGRICULTURE. The condition of winter wheat has shown some improvement recently, as a result of snows and rains in the latter part of January and the early part of February. District No. 10 (Kansas City) states that the Kansas wheat crop, except in the eastern half of the State, is in poorer condition than has been reported at this season in many years. Drought still prevails in large sections of Oklahoma and Colorado, but the deterioration of wheat in Nebraska has been checked by recent snows. Weather was favorable for the wheat crop in districts No. 7 (Chicago) and No. 8 (St. Louis) up to the middle of February. In district No. 11 (Dallas) February rains have benefited crops, but the Texas wheat crop is reported to be far below normal. Vegetable and truck crops of the Gulf Coast and the Rio Grande Valley have so far escaped damage from killing freezes and generally promise fair yields. District No. 8 (St. Louis) reports that stocks of corn on the farms are unusually large for this season and that much corn is being fed to cattle and hogs. COTTON. The price of middling upland cotton at New Orleans in the third week of February was 16.75 cents, the same as the January average. In district No. 11 (Dallas) cold rainy weather has temporarily halted the preparation of soil for the new crop but has been very beneficial in furnishing an abundant supply of subsoil moisture. Although freezing temperatures have frequently occurred in the jiorthern part of the district, it is feared that the cold waves have not been sufficiently severe to insure widespread destruction of boll weevils. Heavy reduction in Texas wheat acreage may result in an increased planting of cotton. District No. 8 (St. Louis) reports that demand for cotton is quiet, while district No. 5 (Richmond) states that farmers continue to hold a substantial portion of the last crop on farms or in bonded warehouses. Exports of raw cotton from the United States amounted to 475,910 bales in January, as compared with 639,825 bales in December. TOBACCO. Sales of leaf tobacco on the markets of Virginia and North Carolina have been limited. Most of the markets in the bright belt closed during February, and the dark markets expect to close during March. In spite of the large amount of low-grade tobacco coming on the market as farmers clean their barns, prices have MARCH, 1922. been well sustained. The Growers7 Cooperative Association has commenced operations in the burley district, making advances to growers as tobacco is delivered to it. Several large sales at quite satisfactory prices are reported by it. In the western dark district the greater portion of the tobacco has been delivered at very satisfactory prices. Most of the und.eliyeredftobacco is of inferior grade but is bringing a fair price. The cigar-leaf market in district No. 3 (Philadelphia) continues dull, and in all but a few sections the largest part of the 1921 crop is still in the growers7 hands. While the quality in general is poor, prices to date have been lower than in recent years. Demand for cigars is reported light in district No. 3 (Philadelphia) and production is still being curtailed. January, 1922, sales were no greater than January, 1921, which in turn was the poorest month in years. A slight improvement is reported since the 1st of February. Only a few makers of popular brands are producing cigars in any appreciable volume. FRUIT. Prices of citrus fruit, both in California and Florida, rose rapidly in the latter part of January, as a result of the severe damage to the California crops from frost. Officials of the California Fruit Growers' Exchange estimate that 50 per cent of the orange crop and 33£ per cent of the lemon crop have been destroyed by frosts and winds. Oranges suffered more severely than lemons, because lemons are planted in more favored situations and are more generally protected by smudge fires and heating plants. Shipments of oranges and lemons from California from November 1, 1921, to January 29, 1922, amounted to 10,439 cars, an increase of about 2 per cent over the shipments in the corresponding period of the previous crop year. According to district No. 6 (Atlanta), extremely cold weather at distributing points has hindered the movement of citrus fruit from Florida, but during this season to date shipments of oranges have been approximately as heavy and shipments of grapefruit have been 12 per cent heavier than in the corresponding weeks of the last crop year. It is estimated that only 45 per cent of the grapefruit crop has been shipped from Florida, and over 6,500 carloads are said to be still on the trees. Unsettled and cold weather during January is reported to have caused some damage to fruit in Michigan. In New Mexico there was some premature blossoming of apricot trees in January, but district No. 10 (Kansas City) re- 273 FEDERAL RESERVE BULLETIN. MARCH, 1922. orts subsequent Egible.thatThe southern loss from frosts was negstrawberry crop was in good condition at the end of January. GRAIN MOVEMENTS. The volume of grain movements showed a further slight advance during January, due to the exceedingly heavy marketing of corn. Receipts of corn at Chicago amounted to 28,568,000 bushels in January, as compared with 18,288,000 bushels in December, and correspondingly large increases in receipts were recorded at Minneapolis, Omaha, and St. Louis. January receipts of wheat showed some curtailment at most reporting centers, although slight increases were recorded at St. Louis and Wichita. Receipts of rye also declined, but receipts of oats and barley registered moderate increases. Stocks of grain at 11 interior centers declined somewhat during January, although there was some increase in stocks of rye and barley. The most general reduction occurred in the case of wheat stocks, which declined at all important centers except Duluth. District IJo. 12 (San Francisco) reports that total exports of wheat and barley from Pacific coast ports during the present cereal year are considerably higher than during the same period of the previous season. These exports amounted in the case of wheat to 47,468,211 bushels this year, as compared with 28,616,256 bushels last year. FLOUR. January production of flour showed an increase over December in certain districts, but in others the reverse was true. In district No. 9 (Minneapolis) the January output reported was 1,935,754 barrels, as compared with 1,754,654 barrels in December, while in district No. 8 (St. Louis) the respective figures for 11 millers were 333,966 barrels and 248,600 barrels. In district No. 7 (Chicago), however, January production of 44 millers was 289,478 barrels, a decrease of 3.3 per cent from the December figure, while in district No. 10 (Kansas City) 1,398,989 barrels were produced in January. Output in district No. 12 (San Francisco) decreased from 775,139 barrels reported by 61 mills in December to 711,292 barrels reported by 67 mills in January. A decidedly better feeling pervaded the trade in district No. 8 (St. Louis), accompanied by stronger demand for both home consumption iand export. Retailers and ultimate consumers show a disposition to replenish stocks. In district No. 10 (Kansas City) demand was somewhat slow early in January, most of the orders being 92371—22 2 for quick shipment. The increase in wheat prices and the accompanying increase in flour has stimulated purchasing, although, states district No. 10 (Kansas City), "not to the extent of creating any extraordinary demands." LIVE STOCK. Movement of each of the principal classes of live stock to market during January was heavier than in December, although in all cases less than in January, 1921. Receipts of cattle and calves at 15 western markets during January were 1,128,020 head, as compared with 975,330 head during December and 1,191,814 head during January, 1921. In the case of hogs, receipts increased from 2,673,947 head during December to 2,882,551 head during January, as compared with 3,339,419 head during January, 1921. Receipts of sheep during January were 1,101,679 head, as compared with 974,034 head during December and 1,112,024 head during January, 1921. During January there was more activity in the purchase of stocker and feeder cattle, calves, and sheep in district No. 10 (Kansas City) than had been observed for many months. Such purchasers in quite a number of instances outbid buyers for the packers. The live stock in the district in general is reported to be in a very favorable position. In districts No. 11 (Dallas) and No. 12 (San Francisco), however, conditions have been unfavorable. Winter rains in district No. 11 (Dallas) have not been sufficient to relieve the drought from which ranges have been suffering for several months, while in district No. 12 (San Francisco) there was unusually cold weather throughout January. Twenty-three representative packers report an increase of 1.8 per cent in January sales (measured in dollars) over those for December, but a decline of 17.8 per cent from those for January, 1921. Reports from district No. 7 (Chicago) generally state that domestic trade in fresh meats was slow during the latter part of January and early February, although domestic trade in cured meats and lard was good. A marked revival took place in the demand for lard and provisions in the United Kingdom and on the Continent, and prices advanced. COAL. Production of bituminous coal showed an increase during January. The output for the month was 37,600,000 tons, as compared with the December production of 30,975,000 tons and a production in January, 1921, of 40,270,000 tons. With the exception of October, the figures for January, 1922, are the largest since 274 FEDERAL RESERVE BULLETIN. January a year ago. The present production is large enough to meet current requirements for consumption and export and at the same time add to the reserve in storage. Due to the expectation of a strike of bituminous miners on April 1, there has been an improved demand and a building up of reserves during the last month. This has been especially noticeable with railroads and public utilities, electric utility plants having 51 days' supply on hand and coal gas plants 89 days' supply on January 1. Other classes of consumers hold from 4 to 8 weeks' supply. Stocks throughout the country on January 1 amounted to 47,500,000 tons in addition to 7,151,000 tons on the Upper Lakes docks. Production of anthracite coal increased from 5,984,000 tons in December to 6,258,000 tons in January, which is 15 per cent below the 7,410,000 tons production for January 1921. District No. 3 (Philadelphia) reports that continued cold weather during the past month has resulted in only a slight improvement in the domestic demand for prepared sizes of anthracite. All purchasing is of a hand-to-mouth -nature and orders are for only small lots, as operators and dealers alike are unwilling to accumulate stocks before the end of the present coal year. Domestic consumers are unwilling to purchase at the present price, as their fuel needs will lessen considerably after April, and consumers of steam sizes are also reluctant to stock at the present price, since they are aware of the existence of heavy- supplies of steam coal in the yards of dealers and operators. In an endeavor to reduce their holdings, independent operators have reduced their prices, even on some of the popular sizes, to the companies' level, and retail dealers have shaded existing prices as much as 50 cents or SI a ton. The production of the beehive coke for January was 496,000 tons, as compared with 514,000 tons in December and 1,137,000 tons in January, 1921, while January production of by-product coke was 1,903,000 tons, as compared with 1,860,000 tons in December and 2,278,000 tons in January a year ago. PETROLEUM. Reports from district No. 10 (Kansas City) state that the number of oil wells completed in January of this year was less than one-half the total completed during January, 1921, but the quality of the wells was such as to bring the new production to within 3 per cent of the total new production for January, 1921. Crude-oil production for Kansas, Oklahoma, and Wyoming amounted to approximately 14,369,000 barrels, as compared with 12,158,000 MARCH, 1922. barrels in January, 1921. Production of crude petroleum in district No. 11 (Dallas) totaled 14,916,130 barrels during January, breaking all previous records and registering an increase of 1,496,380 barrels over the December production figure. In that district 212 new producing wells, with an initial flow "of 259,188 barrels, were completed in January, as compared with 203 producers, with an initial flow of 328,984 barrels, in December. Average daily production of petroleum in California during January was 315,755 barrels, a decrease of 9,723 barrels a day compared with December and of 15,431 barrels a day compared with January a year ago. Fifty-two new producing wells, with an initial daily production of 11,210 barrels, were completed during January. Stored stocks at the end of the month increased to 36,184,527 barrels, an increase of 1,162,615 barrels over the amount stored during December. Prices for crude oil showed very little change during the month of January, but are higher than in January, 1921, at which time crude-oil prices were showing rapid declines. IRON AND STEEL. After the extreme dullness of December, January steel-ingot production showed an increase to 1,593,482 tons from the figure of 1,427,093 tons during the preceding month, but pig-iron production showed a slight decrease, from 1,649,086 tons in December to 1,638,697 tons in January. The unfilled orders of the United States Steel Corporation at the close of the month likewise showed a small decrease, from 4,268,414 tons to 4,241,678 tons. Divergent reports have been heard as to conditions in February. On the one hand, the fact that increased demand since the middle of January has served to carry operations back to the level obtained in November is pointed to. Furthermore, some important companies having a diversified output have recently been able to run at better than 60 per cent of their capacity. On the other hand, while it is acknowledged that many firms report an increasing volume of inquiries and in some instances a larger number of orders, the increase is regarded as relatively slight. It is generally acknowledged that at least a considerable part of the present demand is for small quantities and for immediate delivery. A large part has been for the replenishment of exhausted lines revealed when inventories were completed in January. More active demand by cement and oil interests, as well as for export, is reported. There have been increased inquiries for and some sales of both railroad equipment and structural steel. All in all, con- 275 FEDEEAL RESERVE BULLETIN. MARCH, 1922. flicting tendencies have been in evidence and until recently no marked tendency toward either further progress or recession has appeared. This is reflected by the fact that prices for both pig iron and finished steel products in general have continued weak. AUTOMOBILES. Some improvement in the automobile industry in January is reported, and production is also considerably greater than in the same month a year ago. Companies reporting produced 81,424 passenger cars in January, as against 70,435 in December. These companies produced 99 per cent of the total output reported for December. Manufacturers report that the results of the New York and Chicago automobile shows, both in attendance and interest displayed by the public, were better than expected. It is stated by district No. 4 (Cleveland) that the public is showing more confidence after the recent price reductions, and that orders are starting to come in. Output of reporting truck manufacturers increased from 8,183 trucks in December to 9,127 trucks in January. These manufacturers produced 98 per cent of the total output reported for December. NOXFERROUS METALS. There was little change in the nonferrous metal market during February. The price of copper (New York, net refinery) was 12.875 cents to 13 cents per pound on February 15, as compared with 13.25 cents per pound on February 1, while the price of lead has been practically stabilized at 4.70 cents per pound since last September. The zinc market has been exceptionally quiet, the price remaining around 4.50 cents. Copper production in January amounted to 25,848,284 pounds, in comparison with a production of 18,595,182 pounds in December. Some of the more important copper companies have resumed operations in spite of the reduction in the price of the metal. District No. 10 (Kansas City) reports January shipments of 28,431 tons of zinc blende as compared with 30,096 tons for January 1921, average prices being $26.44 and $27.11, respectively. Production of zinc showed a further increase, amounting to 23,706 tons in January as compared with 22,013 tons in December, but was still less than the amount produced in January, 1921, which totaled 25,916 tons. There was a further slight reduction in the amount of zinc on hand, stocks at the end of January amounting to 65fi78 tons as compared with 66,608 tons at the end of December. District No. 10 (Kansas City) reports that the price of lead ore was very steady throughout the month of January, the prevailing price being $60 per ton every week. Ore stocks at the end of the month showed 72,000 tons of zinc blende as against 50,000 tons for the same date in 1921, and of 600 tons of lead ore as against 500 tons on the corresponding date in 1921. District No. 12 (San Francisco) states that reports received from 14 of the largest mines in that district show a decreased production of gold, silver, and lead for December as compared with the previous month. COTTON. TEXTILES. There has been a subsidence of activity in the cotton goods mills during recent weeks, although the consumption of cotton in January as reported by the Bureau of the Census rose to 526,552 bales, as compared with 511,800 bales in December. The continued fluctuations in the price of raw cotton have been a serious .hindrance to the placing of forward orders, and the extensive strikes in New England mills following announced wage reductions have added to the already existing uncertainties. During January, however, the rate of activity of the New England cotton industry was well maintained and even showed a slight increase. Goods mills in district No. 3 (Philadelphia) are operating at about 70 per cent of capacity, with sufficient orders booked to enable them to continue running at that rate for about six to eight weeks. Very little manufacturing is being done for stock. During the first part of February the yarn market in district No. 3 (Philadelphia) was reported to be exceedingly dull. Orders were in small lots for immediate delivery and buying was confined chiefly to the knitting trade. Yarn mills in the district were operating at 65 per cent of capacity, with about 75 per cent of orders being filled from stock. District No. 5 (Richmond) says that the mills in that section " continued to run on approximately full time in an effort to get the cost of production as low as possible, but orders being far less than the output, some accumulation of stock has resulted." On account of the unwillingness of buyers to place forward orders, many mills were beginning to curtail their operating time. Cottoncloth manufacturers in district No. 6 (Atlanta) have also felt the unfavorable effects of the uncertain markets for raw cotton. In the case of the goods mills, demand decreased during January and a number of the mills reported that they were "unable to secure orders under present conditions for future delivery." Statistics based on the returns from 40 repre- 276 FEDERAL RESERVE BULLETIN. sentative goods mills in the district showed a reduction in the yardage output of cloth during January of 1.7 per cent as compared with December, but an increase of 39.1 per cent as compared with a year ago. Shipments increased 3.4 per cent during the month as compared with December and 29.4 per cent as compared with January, 1921. Orders on hand were 6.8 per cent greater than at the end of the preceding month and 8.2 per cent above those on hand a year ago. Although yarn buyers were also said to be purchasing only for immediate needs, the reports received from 39 representative yarn mills in district No. 6 (Atlanta) showed a great increase in activity during January. Production rose 17.9 per cent as compared with December and was 90.6 per cent greater than a year ago. Yarn shipments increased 2.8 per cent as compared with December and 108.1 per cent as compared with January, 1921. Orders on hand at the end of the month were 15.9 per cent larger than at the end of December and 20.5 per cent larger than a year ago. It is stated that the demand for lowT-grade yarns appears to be weak, consumers showing preference for the better grades. WOOLEN TEXTILES. Activity in woolen textiles has shown a slight recession during the past month, as is evident from the statistics of active and idle machinery and percentages of idle hours reported by the Bureau of the Census. The percentages of idle looms to total reported rose in all cases except in that of carpet and rug looms. For looms wider than 50-inch reed space the percentage of idle machinery on February 1 was 34.3, as compared with 30.3 at the beginning of January. The corresponding percentages for looms 50-inch reed space or less were 27.2 and 21.2, respectively. On the other hand, there was a reduction in the percentage of idle carpet and rug looms from 26.2 to 22.4 (February 1). The percentage of idle woolen spindles rose from 25.1 to 27 and for worsted spindles from 13 to 14.3. Percentages of idle hours to totals reported were also greater in the case of weaving machinery excepting carpet and rug looms, the figures for looms wider than 50-inch reed space being 35.2 per cent on February 1 as compared with 32.9 per cent at the beginning of January. The corresponding figures for looms 50-inch reed space or less were 32 per cent and 27.8 per cent. The percentage of idle hours for carpet and rug looms, however, wTas reduced to 23.9, as compared with 29.7 lor the preceding month. Percentages of idle spindle hours remained practically unchanged, falling MARCH, 1922. in the case of woolen spindles from 25.6 at the beginning of January to 25.4 on February 1, while in the case of worsted spindles they rose from 13.8 at the beginning of January to 13.9 on February 1. District No. 1 (Boston) reports woolen and worsted machinery to be "moderately active," although not operating at as high a rate as during the past two or three months. Orders taken at the recent opening sales of the mills were, generally speaking, below expectations. In district No. 3 (Philadelphia) production of woolen and worsted cloth increased slightly during the month, and reporting mills averaged about 75 per cent of operating capacity. However, orders on hand were not in most cases sufficient to make possible the maintenance of this rate of production for more than 30 days. In the yarn market, district No. 3 (Philadelphia) reports a falling off in the demand for knitting yarns, but there was a slight improvement in the call for weaving yarns, although the market continues to be very limited. Carpet yarns, however, were in active demand. Operations of yarn mills in the district averaged about 80 per cent of capacity, and it was stated that most spinners could continue at that rate for two or three months on the basis of orders on hand. In some cases, departments were being operated at night and a majority of the mills were employing a full force of men. The market for raw wool continues to remain firm, although a lessening of the volume of operations has been noticeable since the beginning of February, according to the report from district No. 1 (Boston). Raw wool prices in the Boston market advanced on the average nearly 50 per cent to the beginning of February as compared with fall quotations. District No. 12 (San Francisco) reports that at the present time little or no wool is held by growers in that district. Between 75 per cent and 80 per cent of the 1921 wool clip and carry-over was sold between June 1 and November 1, 1921, at prices ranging from 9 cents to 20 cents per pound, according to the grade of wool and locality where grown. Wool buyers are now said to be offering from 17 cents to 33 cents per pound for various small holdings still in the growers7 hands. Raw wool consumption during the month of January amounted to 61,192,000 pounds. CLOTHING. Clothing sales in districts No. 2 (New York) and No. 8 (St. Louis) showed very slight changes in January as compared with December. In the former district there was a negligible increase of 2.3 per cent in sales for 10 report- 277 FEDERAL RESERVE BULLETIN. MARCH, 1922. ing firms, while in the latter theie was a sligh recession in the volume of sales of 23 report-in firms. In both districts sales as compared with a year ago showed reductions. In district No. 2 (New York) this drop amounted t < 22.8 per cent. Returns received from six wholesale manufacturers of men's clothing located in district No. 7 (Chicago) showed tha the volume of orders for spring received to date was 25.8 per cent ahead of orders received for the spring season last year. The comparison is for the same number of days during the two seasons. The production increased slightly during the month, the number of suits made being 5.4 per cent greater than during December and 64.1 per cent in excess of production for January, 1921. Shipments were 327.9 per cent greater than in December and 58.9 per cent greater than in January a year ago. The reports received from 10 tailors-to-the-trade showed a slowing down in activity, as the number of suits made was 36.5 per cent below that of the preceding month, although 11.4 per cent greater than a year ago. Orders received during the month were 30 per cent below December figures but 14.5 per cent above those for January a year ago. Shipments declined 36.5 per cent from the December totals but increased 11 per cent over last year. SILK TEXTILES. only 60 per cent of capacity and on the basis of present orders can not continue at that rate more than two weeks. Latest reports from Paterson , and North Hudson, February 11, show a very low percentage of activity, as only 3,653 looms out of a total of 15,000 reporting were operating in Paterson and the percentage of operating loom hours to total available was only 23.02, a reduction from the figure of 24.13 per cent reported two weeks ago. In North Hudson, the percentage of operating loom hours to total reported was 57.48, as compared with 58.81 on January 28. Active looms amounted to 2,456 out of a total of 4,179. HOSIERY. Reports from 33 hosiery firms in district No. 3 (Philadelphia) show a large increase in orders booked during January. In the case of those reporting firms which sell to the wholesale trade, orders booked during the month increased 55.5 per cent as compared with December, while in the case of the firms selling to the retail trade the increase was 181.9 per cent. Unfilled orders on hand January 1 were 1.9 per cent greater than during the preceding month in the case of those firms selling to the wholesale trade, and 33 per cent larger in the case of firms selling to the retail trade. Product manufactured during the month rose for both classes of firms, the respective percentages being 0.4 and 18. Shipments in the case of firms selling to the wholesale trade advanced 11.7 per cent and in the case of firms selling to the retail trade dropped 24.7 per cent. The report from district No. 3 (Philadelphia) says that "statements received regarding the amount of business being done are very onflicting and it is agreed difficulties are met with, due to the fact that the cost of materials has increased while there is difficulty in placing orders at any advance in prices over those named earlier in the season. During the month there was a slight decline in the price of silk and cotton yarns but not sufficient to enable manufacturers to make any concessions to buyers.77 District No. 6 (Atlanta) reports that there is little change in the activity of the otton hosiery mills in that section. Orders booked during the month were, however, considerably larger than in December and about ;he same as reported for January of the preceding year. The market for silk goods of all descriptions is in a highly unsatisfactory condition, due in considerable part to the uncertainties growing out of the speculative rise in the prices of raw silk in the Japanese markets. Buyers, in consequence, are unwilling to make forward commitments on the basis of present costs of production, and the few orders that are being placed are chiefly for immediate delivery. The situation in district No. 3 (Philadelphia) in the case of mills manufacturing silk goods is better than might be expected, considering these disturbing factors, as the average rate of operation of reporting firms is about 70 per cent of capacity. A number of mills, as a matter of fact, are operating at full capacity, but in all cases activity is based on orders received some time ago. The demand for silk yarns has fallen off to a certain extent and the cessation of buying by hosiery manufacturers has been an unfavorable faqtor, but, nevertheless, yarn manufacturers in district No. 3 (Philadelphia) are operating at "an almost normal77 rate for this season of the year. They UNDERWEAR. are, however, engaged on orders taken during previous months. Although a few mills are In January, 1922, reports were received from running at full capacity, with enough business 55 mills producing underwear, as comp are( i to insure capacity operation for about six with 49 in December and 61 in January, 1921. weeks, reporting establishments are averaging \ctuai production during the past twelve 278 FEDERAL. RESERVE BULLETIN. months shows material progress. A year ago the production of 61 reporting mills was only 148,023 dozens, or 16.4 per cent of normal, while the most recent figures from 55 mills place actual production at 640,489 dozens, or 79.1 per cent of normal. In December the production of 49 mills stood at 77 per cent of normal. The greater part of the January, 1922, production was along the line of summer underwear, which amounted to 347,977 dozens, or 95.3 per cent of normal, while the production of winter garments amounted to 292,512 dozens, or 65.8 per cent of normal. Comparative reports received from 34 mills show marked improvement for the month of January as compared with the December returns from the same mills. Production rose from 398,338 dozens in December to 417,051 dozens in January, a gain of 4.7 per cent. Unfilled orders fell slightly, from 1,228,611 dozens on December 13 to 1,175,377 dozens on January 14, a decrease of 4.3 per cent. The most striking gains are seen in new orders received and shipments during the month. The former rose from271,764 dozens inDecember to 481,270 dozens in January, an increase of 77.1 per cent, while 524,007 dozens were shipped during January as compared with 320,126 dozens in December, a gain of 63.7 per cent. At the same time cancellations fell off 36 per cent, from 10,850 dozens in December to 6,940 dozens in January. Forty mills, with a normal production of 685,149 dozens, reported an actual production of 505,242 dozens during January, with unfilled orders on hand on February 1 amounting to 1,531,205 dozens, the balance of orders having increased 18.2 per cent since January 1. New orders amounted to 782,616 dozens, or 114.2 per cent of normal production, while shipments were 78.7 per cent of normal production. Cancellations were slight, being only 1.1 per cent of normal production. MARCH, 1922. several months. District No. 3 (Philadelphia) states that sales of leather are not large, but orders are being received steadily. Sales of belting in district No. 7 (Chicago) were greater in January than in either December or January, 1921, but belting prices advanced. Demand for shoe leathers has been restricted largely to specialties, such as patent, gray suede, smoked elk skins, and veals. January sales in the United States were 124 per cent larger than those of December, due to a heavy increase in demand in the Middle West. Shoe manufacturing showTed an encouraging increase in activity during January, except in district No. 8 (St. Louis). Reports from eight manufacturers in district No. 1 (Boston) indicate that January production was 12 per cent greater than that of December and 113 per cent greater than that in January, 1921. Six of these manufacturers showed an increase of 2 per cent in shipments and a decrease of 7 per cent in new orders for January in comparison with December. Forty-five reporting firms in district No. 3 (Philadelphia) show increases of 15 per cent in production, 14 per cent in shipments, 18 per cent in new orders, 8.5 per cent in stocks, and 5 per cent in number of operatives during January, while the volume of unfilled orders was reduced about 5 per cent. Shoe manufacturers in that district are running their factories at a higher percentage of capacity than at any time since last spring, although prices still continue to decline. In the high-grade factories specialties predominate, varying from strap slippers to sport shoes. Reports from 28 concerns in district No. 7 (Chicago) show that production increased 1 per cent, shipments 4 per cent, and stocks 16 per cent during the month of January. Retail merchants are reported to be buying only in small quantities and low-priced shoes have the best demand. Factory operation in district No. 8 (St. Louis) ranged from 45 per cent to 100 per cent of capacity, with lower production confined chiefly to interests specializing in expensive footwear. January sales of 11 SHOES AND LEATHER. reporting manufacturers in that district showed Demand for hides and skins continued to increases ranging from 62 per cent to 140 perbe very dull during the last week in January cent in number of pairs over January, 1921, but and the first three weeks in February, and prices were slightly smaller than in December, 1921. of packer hides at Chicago yielded somewhat in the week ending February 18. District LUMBER. No. 7 (Chicago) reports, however, that more interest has been shown in country and The lumber situation shows a slight improvespecialty hides than in the packer class. Sales ment. The close of the inventory period has of green calf and kip skins throughout the benefited the industry by an increased demand, United States were 105 per cent greater in but the increase has fallen short of expectaJanuary than in December. The curtailment tions. General conditions in the lumber inmade several weeks ago by most of the tanners dustry of district No. 12 (San Francisco) in the number of hides put into process will improved during January, which was evidenced not be felt in the finished leather market for by an increase in production, shipments, and MARCH, 1922. orders, both as compared with December, 1921, and with January a year ago. Production of lumber during the four weeks ending January 28, according to reports received from three lumber associations, totaled 327,624,000 feet, compared with 264,544,000 feet in the preceding four weeks, an increase of 23.7 per cent during the month. Compared with January, 1921, when 152,110,000 feet were cut, there was an increase of 175,514,000 feet, or 115.3 per cent. Present cut is approximately 80 per cent of normal production for the reporting mills. Orders received during the month totaled 343,565,000 feet, compared with 270,724,000 feet in December and 178,614,000 feet in January a year ago. The January orders exceeded the January cut by 4.8 per cent and the shipments were 5.3 per cent above the actual production, continuing the reduction in stocks which has been in progress since last November. Logging production during January was reported to be approximately 50 per cent of normal. Severe weather conditions have forced man}' camps to suspend operations for the past three months. District No. 6 (Atlanta) reports that although winter weather has interfered somewhat with mill and logging operations, there has been some improvement in the industry, as shown by an increase both in orders and production over the preceding month. For the week ending February 3, of the 75 reporting mills of the Southern Pine Association 57 reported full time and only 4 shut down, compared with 6 operating full time and 23 shut down out of the 78 reporting for the last week in December. Production since January 1 has been about 81 per cent of normal. District No. 11 (Dallas) reports a production of 85,572,937 feet for 41 mills during January, as compared with 95,954,972 feet for 45 mills in December. There has been a sharp decline of shipments combined with an increase in new orders, making the unfilled orders of 41 mills on January 31, 44,667,936 feet, against a total of 39,230,622 feet for 45 mills on December 31. The demand for upper grades of lumber has been very weak. Lumber sales at retail in district No. 9 (Minneapolis) declined 25 per cent between December and January, but were larger than in January a year ago. Stocks, while lower than a year ago, were larger at the end of January than at the end of December. On the other hand, the number of board feet ordered during January, 1922, nearly doubled that of January a year ago, and shipments during January were more than double those of a year ago. Production of reporting mills in January was 4,536,322 board feet, as compared with 1,803,114 board feet in December. 279 FEDERAL EESERVE BULLETIN. In district No. 8 (St. Louis) there has been a declining market for west coast lumber, moderate reduction of stocks, ragged prices, and a somewhat lower selling basis for hardwoods. Southern pine, however, has been making headway, and with a gradually increasing demand has apparently strengthened its price position since the new year. BUILDING. Building permits issued in 166 selected cities reached a total value of $138,631,902 during January, as compared with §140,382,406 during December and $61,522,867 during January, 1921. In seven of the twelve Federal Reserve districts—No. 1 (Boston), No. 3 (Philadelphia), No. 5 (Richmond),. No. 6 (Atlanta), No. 7 (Chicago), No. 11 (Dallas), and No. 12 (San Francisco)—the value of permits issued was greater in January than in December. These increases varied in size from 3 per cent in district No. 7 (Chicago) to 64 per cent in district No. 11 (Dallas). Decreases were registered in the other five districts and ranged in size from 3 per cent for district No. 2 (New York) to 52 per cent for district No. 9 (Minneapolis). The value of permits issued in January, 1922, was greater than in January, 1921, in the case of every Federal Reserve district. These increases varied from 4 per cent for district No. 4 (Cleveland) to 230 per cent for district No. 2 (New York). The value of contracts awarded in seven Federal Reserve districts (statistics of which are compiled by the F. W. Dodge Co.) decreased from $183,633,754 in December to $148,377,055 in January. Decreases occurred in districts No. 1 (Boston), No. 2 (New York), No. 3 (Philadelphia), No. 5 (Richmond), No. 7 (Chicago), and No. 9 (Minneapolis), while there was a moderate increase in the value of contracts awarded in district No. 4 (Cleveland). District No. 1 (Boston) states that residential construction continues to be maintained at a high rate, whereas the number of new business buildings shows a marked decline. Reports from district No. 3 (Philadelphia) indicate considerable building activity, which has been encouraged by further declines in prices of materials. In district No. 6 (Atlanta) building has continued in large volume during the winter months, as the weather has been unusually mild, but building for industrial purposes has not revived to the same extent as home building. A large number of small homes are also being built in the southern sections of district No. 8 (St. Louis), where favorable weather conditions prevail. District No. 9 (Minneapolis) reports that there is a noticeable increase in the average size of permit issued for new construction, in spite of declining 280 FEDERAL RESERVE BULLETIN. MARCH, 1922. building costs. Construction activity in dis-;1 ranging from 4.5 per cent in district No. 4 trict No. 11 (Dallas) is increasing in volume/ (Cleveland), 11 firms reporting, to 95.3 per cent and is being extended from residential building in district No. 10 (Kansas City), 5 firms reportto building for business purposes. District ing. A majority of the other districts record No. 12 (San Francisco) reports that building exceptionally heavy increases, amountingfc)49.2 activity in January once more reached record per cent in the case of district No. 7 (Chicago), proportions, exceeding that in any month with 11 firms reporting, and 54.9 per cent in district No. 5 (Richmond), 14 firms reporting. with the exception of October, 1921. In all other cases except district No. 12 (San EMPLOYMENT. Francisco) increases were in excess of 25 per cent The reports received from the various dis- as compared with the preceding month. Sales tricts concerning developments in the labor were heavier as compared with January a year situation during the past month are of a some- ago in every case except district No. 6 (Atlanta), what conflicting character. The latest state- where there was a negligible drop of 1.5 per cent ments issued by the United States Employ- for 21 reporting firms. Otherwise increases ment Service, covering firms employing more ranged from 2.5 per cent for 14 firms in district than 500 workers, show that for the period No. 5 (Richmond) to 62.1 per cent for 5 firms ending January 1 there was an increase of in district No. 10 (Kansas City). Increases as 4.2 per cent in numbers employed as com- compared with a year ago were also especially pared with the end of December. Increases heavy in district No. 2 (New York), district were especially noticeable in the case of No. 7 (Chicago), and districtNo. 9 (Minneapolis), vehicles for land transportation, in which the advances amounting to 40.3 per cent for 3 there was an increase of 58.4 per cent during firms, 42.4 per cent for 11 firms, and 50.1 per the month. Leather and its finished products cent for 4 firms, respectively. and metals followed with increases of 3.7 per Reports from wholesale grocery firms indicent and 2.8 per cent, respectively. The cate a generally dull trade during the month of largest decreases occurred in railroad repair January in all districts except district No. 9 shops, which showed a reduction of 3.9 per (Minneapolis), in which an advance of 3.5 per cent in numbers employed, and in tobacco cent for 12 firms occurred, and district No. .12 manufacture, in which there was a decrease (San Francisco), in which there was an increase of 2.6 per cent. The net increase in numbers of 15.5 per cent for 31 firms. Decreases were employed amounted to 63,400 for the 1,428 recorded ranging from 2.4 per cent in district reporting firms, which were employing 1,556,- No. 11 (Dallas), 12 firms reporting, to 11.8 per 507 workers on January 31. Since the date of cent in district No. 2 (New York), 41 firms rethis report, conditions have arisen which porting. As compared with a year ago, dehave brought about increases in unemploy- creases were evident in all reporting districts, ment in certain sections of the country, although in most cases they were not suffinotably in district No. 1 (Boston), where ciently pronounced to more than offset the widespread strikes in the textile mills of intervening price declines in most cases. The Rhode Island and New Hampshire are now declines in sales were least in district No. 12 in progress. The strikes started about the (San Francisco), where a drop of 1.9 per cent middle of February, when mills in northern was recorded for 31 firms; the decrease was New England and Rhode Island announced a greatest in district No. 6 (Atlanta), where reduction of 20 per cent in wage rates, accom- sales were 18.8 per cent less for the 32 reportpanied in some instances by an increase in ing firms. Seasonal dullness in the hardware working hours from 48 to 54 per week. So trade is also reflected in the fairly pronounced far, cotton mill operatives in Massachusetts drop in sales that occurred in most reporting have not been affected to any great extent, as districts during the month of January. Exno wage reductions have been made either in clusive of district No. 5 (Richmond), in which Fall River or New Bedford. an advance of 7.1 per cent in the sales of 19 reporting firms occurred, declines were regisWHOLESALE TRADE. tered in all reporting districts, the miniStatistics of sales for four reporting whole- mum being 2.5 per cent for district No. 12 sale lines—groceries, dry goods, hardware, (San Francisco), with 21 firms reporting, and and boots and shoes—indicate no changes of the maximum amounting to 29.5 per cent moment during the past month, although in for 8 reporting firms in district No. 10 the case of dry goods a marked seasonal upturn (Kansas City). The volume of sales as comin sales is registered for all districts except dis- pared with a year ago has been fairly well trict No. 2 (New York), in which there was a sustained, the decreases ranging from a' neglidecline of 14.3 per cent for 3 reporting firms. gible amount of 0.7 per cent in district No. 12 In all other districts there were advances (San Francisco), 21 firms reporting, to 28.6 281 FEDERAL, RESERVE BULLETIN. M A R C H , 1922. per cent in district No. 4 (Cleveland) 10 firms reporting. Three reporting shoe wholesalers in district No. 9 (Minneapolis) reported a very heavy increase in sales during January of 73.6 per cent as compared with the preceding month. Otherwise declines were recorded in districts No. 2 (New York), No. 5 (Richmond), No. 6 (Atlanta), No. 7 (Chicago), and No. 12 (San Francisco), rising from 2.7 per cent in the case of district No. 6 (Atlanta), 9 firms reporting, to 15.2 per cent in the case of district No. 7 (Chicago), 16 firms reporting. As compared with a year ago, four districts—No. 2 (New York), No. 5 (Richmond), No. 9 (Minneapolis), and No. 12 (San Francisco)—show increases amounting to 6.4 per cent, 8 firms reporting; 36.5 per cent, 20 firms reporting; 47.1 per cent, 3 firms reporting; and 26.2 per cent, 21 firms reporting, respectively. RETAIL TRADE. Retail sales in January showed the usual decrease in volume after the holiday buying. All districts reported decreases in dollar amounts as compared with January, 1 1921, figures, but this is attributed in most cases to decline of prices rather than a smaller volume of trade. The public did not respond as usual to the annual sales, and extra sales efforts were necessary to maintain even the current volume of sales. Collections were rather poorer than in the preceding months, the percentage of unpaid charge accounts compared with cash payments being large, especially in country districts. The dollar amount of sales recorded by 387 stores throughout the United States showed a decrease of 12.4 per cent from January, 1921. Decreases recorded by the various districts amounted to 8.1 per cent in district No. 1 (Boston); 7.8 per cent in district No. 2 (New York); 12.2 per cent in district No. 3 (Philadelphia); 21.9 per cent in district No. 4 (Cleveland); 17 per cent in district No. 5 (Richmond); 19.4 per cent in district No. 6 (Atlanta); 6.6 per cent in district No. 7 (Chicago) ; 15.1 per cent in district No. 8 (St. Louis); 15.6 per cent in district No. 9 (Minneapolis); 12.9 per cent in district No. 10 (Kansas City); 19 per cent in district No. 11 (Dallas); and 6.3 per cent in No. 12 (San Francisco). Department stores stocks showed a decrease of 4.2 per cent from last month, but are about the same size as last year. The rate of turnover was slightly less than in December, 1921, but there was a rather substantial increase in the volume of outstanding orders. the rise in the prices of agricultural commodities. Prices of grains and live stock, not only on the large exchanges but generally throughout the country, showed appreciable advances, while wool prices, especially for the finer grades, were materially higher than in December and January. Raw cotton, however, was slightly lower at the opening of February than in January, and the average quotation for the first three weeks of February for upland middling at New Orleans was $0.1629 a pound, as compared with $0.1675 in January. Prices of nonagricultural raw materials were for the most part lower in February than in January. An average of the prices of all grades of bituminous coal on the leading markets of the country was $2.21 a ton at the mine in February, as compared with $2.26 in January. Pig iron prices were also lower in February, as were prices of copper and tin. Lumber prices have been practically unchanged for a period of several weeks. An average of February prices of manufactured goods would probably show little change from the January average. Steel products continued to decline in February; also cotton yarns and cloth. Wool and silk textiles, on the other hand, increased, although in the case of the finished goods trading appears to have been on a comparatively narrow basis. Food prices showed a tendency to increase because of the rise in prices of agricultural commodities. January is the most recent month for which index numbers of wholesale prices are available. The Federal Reserve Board index for that month was 138 (with prices in 1913 considered as 100). This figure was the same as the December index. Between December and January small reductions were made on the average in the prices of manufactured goods, while raw materials as a group advanced. The increase in the latter group was due to the advance in prices of farm products. Changes in retail prices and the cost of living in general have been slight during the past few months, as is shown by a study of the cost of living in 32 cities which was published by the Bureau of Labor Statistics early in February. This study shows that between September and December, 1921, there was an average reduction in the cost of living of only 1.7 per cent. The total reduction since the peak of prices in the summer of 1920 is estimated at 19.5 per cent. FOREIGN TRADE. January exports and imports were both somewhat lower than those reported for December. Exports, which amounted to $279,The most significant feature in the price situ- 000,000, were at a level lower than had been ation in the first three weeks of February was reached at any time since xiugust, 1915, Im- PRICES. 282 FEDERAL RESEKVE BULLETIN. ports, which were valued at $216,000,000, although lower than the December total, did not decline to the very low. values recorded in the summer months of 1921. Foreign trade at this season of the year is normally less than at other times, so that this latest decline is not unexpected, nor does it signify anything new of a disturbing sort. One of the most significant facts in connection with American foreign trade in recent months has been the readjustment of exports and imports upon a basis more nearly approaching an even balance. In January the excess of merchandise exports over imports was only $63,000,000, as compared with $445,000,000 for the previous January, and a monthly average during 1921 of $165,000,000. The latest foreign trade figures, therefore, indicate the continuance of a tendency which became especially pronounced in November, 1921, when merchandise exports exceeded imports by $83,000,000, as compared with the far greater amount of $155,000,000 in October. If allowance is made for imports of gold and also for estimates of the various "invisible" elements in our trade balance, such as immigrants7 remittances and foreign investments, the excess of merchandise exports has been more than offset in each of the last three months, with the result that our balance of trade has actually been reversed and for those months constituted a small debit against us. SHIPPING. Ocean freight rates during February remained generally steady, while such changes as occurred were in the direction of higher quotations. Grain was the principal commodity for which substantially increased rates were paid from American ports to the United Kingdom and the Continent, while small increases over January rates were effective on flour in the same trades. West Indian sugar cargoes, although not so active as in January, continued to furnish employment to many vessels. Time chartering for future requirements was less in evidence than in the previous month, but there was good demand for steamers in position for prompt loading, and charterers at times found difficulty in filling their immediate needs without offering a premium. Steamship men report that cargo offerings are on the increase, which, coupled with the firmness of freight rates and improved foreign exchange conditions, has given rise to a feeling of greater confidence in shipping circles than prevailed two or three months ago. MARCH, 1922. FLOTATION OF FOREIGN LOANS. Following is the text of a statement given to the press by the Department of State on March 3: At a conference held last summer between the President, certain members of the Cabinet, and a number of American investment bankers, the interest of the Government in the public flotation of issues of foreign bonds in the American market was informally discussed and the desire of the Government to be duly and adequately informed regarding such transactions before their consummation, so that it might express itself regarding them if that should be requested or seem desirable, was fully explained. Subsequently the President was informed by the bankers that they and their associates were in harmony with the Government's wishes and would act accordingly. The desirability of such cooperation, however, does not seem sufficiently well understood in banking and investment circles. The flotation of foreign bond issues in the American market is assuming an increasing importance, and on account of the bearing of such operations upon the proper conduct of affairs it is hoped that American concerns that contemplate making foreign loans will inform the Department of State in due time of the essential facts and of subsequent developments of importance. Responsible American bankers will be competent to determine what information they should furnish and when it should be supplied. American concerns that wish to ascertain the attitude of the Department regarding any projected loan should request the Secretary of State in writing, for an expression of the Department's views. The Department will then give the matter consideration and, in the light of the information in its possession, endeavor to say whether objection to the loan in question does or does not exist, but it should be carefully noted that the absence of a statement from the Department, even though the Department may have been fully informed, does not indicate either acquiescence or objection. The Department will reply as promptly as possible to such inquiries. The Department of State can not, of course, require American bankers to consult it. It will not pass upon the merits of foreign loans as business propositions, nor assume any responsibility whatever in connection with loan transactions. Offers for foreign loans should not, therefore, state or imply that they are contingent upon an expression from the Department of State regarding them, nor should any prospectus or contract refer to the attitude of MARCH, 1922. 283 FEDERAL BESERVE BULLETIN. this Government. The Department believes that in view of the possible national interests involved it should have the opportunity of s&ying to the underwriters concerned, should it appear advisable to do so, that there is or is not objection to any particular issue. average rates of decline are reported for the following cities: Baltimore, 62 per cent; Cleveland, 65 per cent; Minneapolis, 70 per cent; St. Louis, 79 per cent; and Kansas City, 91 per cent. In the following table are shown acceptance liabilities by principal cities separately for national and other member banks, also for all member banks on all call dates for the period Member Bank Acceptances at the Close of 1921. December 29, 1920, to December 31, 1921: Between June 30 and December 31, 1921, outstanding acceptances of all member banks ACCEPTANCE LIABILITIES E ROFB ANATIONAL AND OTHER MEMB NKS. decreased from $431,887,000 to $367,294,000, [In thousands of dollars.] or by about 15 per cent. The shrinkage in the volume of outstanding member bank acceptances has been continuous since May 4, 1920, Class of banks and Dec. 29, Pel). 21,'!Apr. 28.1'j Juno 30, Sept. 6, Dec. 31, 1921. 1921. 1921. 1921. 1921. 1920. city. when the peak total of $673,852,000 was shown. Between that date and the end of 1921 the National banks. shrinkage totaled $306,558,000, or over 45 193,3091 191,918: 173,062| 142,620 122,638, 111,724 per cent, while $226,414,000, or 38 per cent, New York 1,194 1,484 772' 568 512 Buffalo 768: 49,786: 47,181! 46,207: 33,697 25,949 35,332 constitutes the decrease for the past calendar Boston 775 518 Providence, l,05l ! 404 303 932 year. This per cent decline is somewhat Philadelphia 10,343! 12,143 11,862 l(),402 9,463j 10,589 1,244 1,067 1,471; 1,240; 1,198' Pittsburgh 1,700, smaller than the relative decline for the year in Cleveland 1,137. 2,123 959 8,528 1,197! 1,924'j 3,385! 3,558' 453 4,527; 5,003 1,533 our total foreign trade, viz, 48 per cent. Detroit 68.1.1 150 1,202! 511 182! 742' Cincinnati Acceptance liabilities of the national banks, Memphis 100 . 2,484' 2,818' 492 1,365 316! 55i; which constitute about 60 per cent of the total Indianapolis ' 2,190| 2,0J 9' Richmond 1,028 1,903.1 3,6.15 acceptance liabilities of member banks, show Baltimore 4,273' 3,100! 1,812 1,446 2,118l 1^749 600! 700; Atlanta 450 250j. a decline of about 40 per cent, while those of New Orleans 1,532, 908| 920 846i 911 Charle 2,166 1,441 1,927 778! 409 1,009 trust company and State bank members de- Chicagos t o n s . C 28,819i 23,894 24,280; 19,2951 24,030' 18,582 clined only 32 per cent during the year. St. Louis 3,116; 524! 2,615 922 657j 5681 8,208 1,819; 5,888' 2,462 1,4221 1,658; National banks in New York City show a de- Minneapolis Mo Kansas City, 3, G49i 2,240! l,023| 350 1,079 2,293 Dallas ". 890| 150 1,181 300 250! 1,750: crease in their acceptance liabilities from San Francisco 7,4011 8,393 13,241! 14,091' 13,611i 10,66o| $193,309,000 to $111,724,000, or at about the Los Angeles 1,102 1,367; 1,816! l,78lj 9771 1,703 Portland 2,507! 2,772'i 2,493' 1,64* 938 1,453 same rate as all other national banks, while Seattle l,021j 1,099! 474 351 931| 495 Allother 17,302| 12,369! 12,093 19,845! 9,872| 15,440 trust companies and State banks in New York City show a decline from $148,296,000 to Total. 375,416! 345,644 304,2311 250,925| 218,180; 218,936 i I i $103,398,000, or at a rate of decline slightly lower than member banks of their class in Dec. 29, Apr. 28, June 30, Dec. 31. Class of banks and city. 1920. 1921. 1921. 1921. other cities. The relative volume of outstanding New York member bank acceptances, and trust compared with the total volume of member State bank members. company •\ bank acceptances outstanding, shows a slight 118,296 138,856 , i12,554 103,398 increase for the }Tear from 57.5 to 58.1 per cent. New York 1,950 Buffalo 856 i 919 534 14,349 11,857 11,012 9,402 Smaller than average reductions are reported Boston 1,309 ! 751 Providence... 1,569 353 200 ' 624 1,100 156 by member banks in the southern cities, in- Philadelphia.. . 198 376 Pittsburgh 450 100 cluding New Orleans and Dallas, whose fig- Cleveland 8,746 : 9,008 4,746 3,649 400 450 Detroit 900 225 ures, because of the rise in the price of cotton, Cincinnati 150 3 444 275 280 545 show substantial increases during the second Memphis Richmond 100 part of the year. Member banks in Richmond Baltimore... 500 197 100 162 197 111 337 more than doubled their acceptance liabilities Atlanta Savannah 562 475 410 964 7,442 6,569 6,714 4,467 during the latter half of the year and the New (Means 23,TS81 21,273 Chicago 16,697 20,996 December 31 total is about 58 per cent larger St. Louis 1,472 4,937 1,152 793 1,550 132 1,966 than the total reportedjabout the- close'of 1920. Kansas City, Mo. 125 Dallas 1,122 ' 726 Of the larger financial centers outside of New San Francisco 971 1,499 390 200 , Los Angeles 744 217 York, Philadelphia shows a decline for the year Portland 630 i 785 684 4 ! 66 3 ; of 38 per cent, Chicago a decline of 35 per cent, Seattle Allother 4,810 i 4,318 2,078 3,660 San Francisco a decline of 31 per cent, and -Total ! 218,292 . 199,938 ; 180,962 j 148,358 Boston a decline of 30 per" cent. Larger than : : : : ! i ! : 1 1 ! 1 1 ! ! 284 FEDERAL RESERVE BULLETIN". ACCEPTANCE LIABILITIES OF NATIONAL AND MEMBER BANKS—Continued. OTHER [In thousands of dollars.] Class of banks and city. about $600,000,000, the October 1 estimate of the American Acceptance Council. HOLDINGS Apr. 28, i June, 30, 1921. : 1921. MARCH, 1922. OF B A N K E R S ' ACCEPTANCES RESERVE BANKS. Dec. 31, 1921. BY F E D E R A L [In thousands of dollars.] I Purchased in open market. . Held under discount. All member banks. New York Buffalo Boston., Providence .' Philadelphia Pittsburgh Cleveland Detroit Cincinnati Memphis Indianapolis Richmond Baltimore Atlanta Savannah New Orleans Charleston, S. C Chicago St. Louis Minneapolis Kansas City, Mo Dallas San Francisco Los Angeles Portland Seattle All other Total 311,918 ' 264,164 311,005 1,628 : 1,687 3,434 58,064 ! 44,709 64,135 2,084 i 1,158 2,620 | 11,026 | 17,443 j 12,062 : 1,442 2,076 1,921 ! 9,883 ; 13,274 ! 11,131 3,785 5,427 i 4,008 I 681 i 1,352 J 511 444 . 375 280 1,365 2,818 " • 551 1,028 2,290 : 1,741 1,643 . 1,849 4,773 ; 612 361 797 ; 475 : 410 562 | 7,489 5,378 8,974 ! 1,441 778 2,166 ! 40,291 52,500 | 45,553 ' 1,996 : 1,809 8,053 j 1,819 1,422 8,208 ' 2,573 • 3,045 3,781 j 150 , 300 1,750 i 14,337 11,636 14,303 1,177 2,447 2,206 3,557 2,137 3,123 934 561 1,103 j 16,029 16,411 24,655 215,122 1,046 44,734 871 10,745 1,167 4,608 678 153 545 492 3,615 1,812 337 964 7,697 1,009 35,279 1,715 2,462 350 1,306 9,892 1,319 1,507 351 17,518 593,708 ' 504,169 j 431,887 367,294 Recapitulation. Total national banks i 375,416 ! 304,231 Total State bank and trust j | company members ! 218,292 ! 199,938 Grand total i 593,708 j 504,169 250,925 148,358 431,887 367,294 Federal Reserve Bank holdings of purchased and discounted bank acceptances, which reached the low total of $17,912,000 on July 31 of last 3rear, show a gradual increase to $145,045,000 at the close of the year, of which $110,552,000 represented member bank acceptances. The latter amount constitutes about 30 per cent of all the member bank acceptances outstanding on that date, which is about the proportion of member bank acceptances hold in the portfolios of the reserve banks about the end of 1920. In addition, as shown in the subjoined exhibit, the reserve banks held at the (Jose of last year a total of $34,831,000 of bills accepted by nonmember banks, including private banks, agencies of foreign banks, and discount corporations. It is believed by some that the percentage of total outstanding nonmember bank acceptances held in the portfolios of the reserve banks is somewhat larger than the percentage of member bank acceptances. Assuming, however, an equal 30 per cent of both classes of acceptances held by the reserve banks, we may estimate the total amount of bank acceptances outstanding at the close of last year at somewhat less than $500,000,000, compared with j Nonmem- i ! bcr I ibanksj Pri- j B r ?"f s JTotal. MemTotal. Mem! and Other and vate j agencies ber ber banks. banks. I Date. ! pora1 tions. 1920. Dec. 3 1 . . 1921. Tan. 31.. Feb. 28.. Mar. 3 1 . . Apr. 30.. May 3 1 . . June 30.. July 3 1 . . Ausr. 31.Sept. 30.. Oct. 3 1 . . Nov. 30.. Dec. 3 1 . . 258,878169,387 38,374! 21,905 ! 162,385' 89,240 169,048! 96,313 119,054' 65,868 109,142': 62,327 75,239' 46,754 40,130! 26,787 17,912! 13,411 35,280! 25,158 44,9161 33,620 86,055! 64,886 72,824.1.53,490 145,0451110,264 32,372 33,768 20,653 18,341 10,053 6,960J 3,087j 5,63Si 4,8J3| 11,746i 8,873" 13,656i 18,055 18,458 15,878 13,915, 9,517| 3,39li l,034i 3,022i 2,6351 6,488' 4,960 1231i> 26,212,17,218 22,718.12,506 20,509,13,421' 16,65513,052' 14,559'l0,188i 8,915' 9,472: 2,992 8,456i 380 6,089) 1,462, 1,715; 3,842' 845 2,935! 899 5,501! 447j 8,806' 338 0) 8,454 8,669 9,181 6,343! 6,469! 6,033 4,075 924 3811 623j 378i 288| 4,052 4,752 3,871 3,845 3,003 2,423 2,014 791 464 276 69 50 218,936 180,962 Accepted b y - Accepted by— i No data. Acceptance liabilities of 13 of the leading British banks show for the same period (i. e., between the last of 1920 and 1921) a decline from £96,598,000 to £69,894,000, though it should be noted that a much lower total was reached on Juno 30 of last year and that since then quite a substantial recovery of the British acceptance business has taken place. Acceptance liabilities of the three great French banks declined nearly one-third between the end of November, 1920 and 1921, while the Italian great commercial banks, except the now insolvent Banca Italiana di Sconto, show a decline of over 20 per cent for the same period. The Sconto's acceptance liabilities on October 31, 1921, were about 200,000,000 lire, the largest total ever reported by that institution and, for that matter, by any Italian commercial bank. The greater ease in the general credit situation affected also the course of acceptance rates, which show a practically continuous decline during the second half of the year. Openmarket rates in New York on prime bank acceptances, which were quoted as high as 5J-6 per cent during June of last year, declined to 4J-4\ per cent about the end of November, and these rates were in effect about the end of the year. FEDERAL RESERVE BULLETIN. MABcn, 1922. TOBACCO FINANCE. The following is the fifth of a series of articles describing the financing methods which are employed in the tobacco industry. The previous articles appeared in the September, 1921, October, 1921, November, 1921, and December, 1921, issues. Data were obtained partly through the cooperation of the Federal Reserve Agents in the various districts, and partly direct from banks and persons interested in the industry in various capacities, as well as from other Government organizations. To all of them acknowledgment is due. V. LEAF TOBACCO DEALING—MANUFACTURED AND EXPORT TYPES. The Commissioner of Internal Revenue, in pursuance of his duty as collector of taxes on tobacco and tobacco products, has laid down regulations which govern in certain particulars the operations of persons engaged in the industry. In addition to growers, he recognizes as distinct classes dealers (including bu}rers who act for two or more dealers) and manufacturers. To the extent that a manufacturer receives tobacco for resale or for any purpose other than manufacture, or receives it off his bonded factory premises, he is regarded as a dealer. ' 'Dealer'3 includes any person whose business it is, for himself or on commission, to sell, or offer for sale, leaf tobacco, and every person who, as a principal, receives leaf tobacco into his actual possession. Accordingly, anyone who operates a sales or storage warehouse, a stemmery, or a rehandling plant is regarded as a dealer. Every dealer is required to give bond and register with the collector of internal revenue of the district in which the business is to be conducted. He is permitted to sell only to other dealers in tobacco, to registered manufacturers, or for export. The quantity sold shall not be less than a hogshead, case, or bale, except loose-leaf tobacco, comprising the breaks on warehouse floors, and except to a duly registered manufacturer of cigars, for use in his own manufactory exclusively. These regulations apply to both dealers in the cigar and in the manufactured and export types. A. CLASSES OF DEALING. From the description just given it will be clear that dealing in the manufactured and export types of tobacco (using the term in the more restricted sense in which it is generally understood in the trade) may be done in one of several ways. The dealer may either buy the leaf outright or else he may act merely as intermediary and purchase and re dry or rehandle it as he receives specific orders. This is 285 called buying on order. He may do the latter either under contract, that is, agree to deliver at a fixed price, or under order, receiving a specified commission and charge for rehandling, as will be indicated below. There is little contract business, and this is said to be done only where the buyer has great confidence in the dealer. The extent to which each of these two general methods—purchase for own account and purchase on order—is used varies with market conditions and with the type of tobacco in question. It is often said"to be hazardous to buy tobacco for one's own account, due both to uncertainty as to when the same may be sold and possible changes in price, so that the practice is often designated as speculating. In an active advancing market more tobacco is therefore bought b}^ dealers on their own account. During the 1919-20 season many dealers did this, but during the 1920-21 season, with the drop in the price of tobacco, they confined their business to purchasing on order. Bright tobacco is said to afford greater opportunities for speculation, due to the value attached to the color of the leaf. Purchase on own account shades into order buying in certain cases, for dealers may also buy to some ,extent in an endeavor to anticipate later orders of customers, basing their action on the regular needs of the latter as shown by past experience. Some dealers act as brokers in selling hogshead tobacco for others. Sales of tobacco bought by the dealer on his own account may be made either to manufacturers or to other dealers or for export. A considerable number of local dealers in the smaller markets confine their business to buying on order for others, and do this to a considerable extent for other dealers who themselves have received an order from a manufacturer or from abroad. Certain local dealers purchase to some extent on their own account, but this is done especially by larger dealers in the leading markets. The latter maintain on hand stocks of leaf of their own standard grades, which they are able to supply at all times to the trade. These larger dealers in general arc interested in other firms, in some cases very extensively, in addition to themselves having branches at various markets, which provide facilities for handling or storing tobacco. In particular, Danville is the headquarters of dealers in the East and Louisville in the West. The smaller dealers tend to specialize in either the eastern or the western types, but a number of the larger dealers handle both. The proportion of the crop which passes through the hands of dealers differs greatly as between the different types. This question is closely related to the extent to which the sev- 286 FEDERAL RESERVE BULLETIN. era! types are exported instead of being used domestically. It is estimated that 35 to 40 per cent of bright tobacco is used domestically, and 30 per cent of the Virginia dark type. In the West, 85 to 90 per cent of burley is so used, 30 to 40 per cent of one-sucker tobacco, and one-half the Green River type, but the major part of the Paducah, Clarksville-Hopkinsville, and stemming types is exported. The bulk of the tobacco used domestically is purchased by the four large companies. These large companies in general have highly developed buying organizations, and purchase direct from the farmer, either at the leaf sales warehouses or in the country, according to the district in question. Foreign business is therefore more important to the dealer, and he furthermore pays much less attention on the whole 7 burley than to the other types. to Dealers estimates place the proportion of the 1921 crop passing through their hands at not over 25 per cent. A considerable number make the estimate 10 to 15 per cent, and another group 25 per cent. From the eastern districts it is generally reported that dealers are confining their buying largely to the common grades. The destination of exports in 1920 is given in the following table: Pounds. Total leaf tobacco United Kingdom France Italy Belgium Netherlands.. Scandanavia Germany Canada China Australia British West Africa : Value. 467,662,124 '• $244,897,187 ! ; ! ' , ! i j ! : i 162,709,819 60,396,643 44,160,278 28,499,360 26,351,990 23,420,970 14,773,1.36 16,678,521 18,224,923 18,372,538 12,507,022 128. 020,512 18! 664,414 ; 097,714 099,062 304,032 237,156 637,017 884,751 097,216 222,956 757,282 Consideration of the total volume of exports, and the major countries to which they go, will serve to show why the fall in foreign exchange has had so great an effect upon the leaf tobacco business. The bulk of these exports pass through the customs districts of New York, Philadelphia, Maryland, Virginia, and New Orleans, the 1920 figures for these districts being as follows: | Pounds. Value. I "United States New York Philadelphia Maryland Virginia New Orleans 467,662,124 §244,897,187 139.672,664 25,845,788 70,722,943 105,186,923 93,242,408 62,385,102 12,498,350 32,217,257 94,828,404 24,659,241 MAECH, 1922. B. SERVICES OF THE DEALER. In acting in the manner indicated above, the dealer performs several services. Whether buying on order or for his own account, it is necessary for him to assemble the tobacco desired by the manufacturer and in so doing to sort or grade the leaf he purchases, and to redry or renandlc it, placing it in keeping order. Whore he buys it for his own account, he has the further duty of keeping it in stock until it is ready for use. It frequently takes a considerable time to assemble a lot of tobacco, for the individual manufacturer often has his preferences as to color and kind of leaf, as well as with respect to method of preparation. Some tobacco is air dried, which takes about six months, but the great majority is redried with the aid of steam. The machine is a steel enclosure, from 73 to 200 feet long, and approximately 18 feet wide and 9 feet high. It contains moving conveyors, on which the tobacco is carried from one end to the other. The machine has three compartments, used respectively for drying, cooling, and ordering or steaming. The first chamber is approximately half the total length, the second oneeighth, and the third, the remainder. The tobacco leaves, tied in hands, are placed on sticks, which arc then placed in the notches on the chains of the conveyor. The hands are first carried into the drying chamber, which contains steam coils for heating the air. The object here is to dry thoroughly every leaf and stem to the point of brittlencss. The temperature for the heavier grades varies from 120°170° F., and for the lighter grades from 120°145° F. The tobacco then enters the cooling chamber, through which passes a continuous stream of cold air sucked in from the outside atmosphere by large fans. Finally, the tobacco passes through the ordering chamber. Here steam comes in contact with the hands, and reduces them to a condition of pliability. The details as to length of time spent -in passingthrough the dryer, temperatures, etc., are determined by the expert in charge of the operation and vary according to his judgment, mien the tobacco emerges from the machine, the sticks are removed from the conveyor and the hands packed and compressed into hogsheads. The hogshead is then headed, and is ready for shipping or storing. Tobacco is not used by the manufacturer immediately after it is rchandled, but is "aged" instead. The dealer who buys tobacco on his own account generally performs this service for the manufacturer. This involves him in further expense, namely, that of interest on his investment, storage charges, and insurance. 287 FEDERAL RESERVE BULLETIN. MARCH, 1922. The Bureau of the Census docs not separate QUANTITY OF MANUFACTURED AND EXPORT LEAF TOBACCO the stocks of leaf held by dealers from those HELD BY MANUFACTURERS AND DEALERS, 191.9—1921. held by manufacturers, showing merely total [Pounds.] figures for the first of each quarter. The leaf is, however, divided according to types. The Virginia j Bright. I Burley. Western Total. dark. dark. stocks held vary widely from year to year, as well as at different dates within a given year. 1919. "This may be accounted for in part by prac- J a n . 1 . : 913,252,894: 46,472,484' 427,369, 856j! 139,038,535 267,878,756 tices and customs prevailing in the various Apr. 1. : 1,255,869,264 59,590,593 434,517,068 333,912,305394,027,730 ul . 42,919,482 327,277,360! 287,564.917:322,333,696 tobacco-growing localities, the size of the crop, JOct.y l1. !". 1,012,255,690 34,221,05-i| 367,976,734 229,890^ 560.222,499,314 891,633,932 the prices obtaining, transportation facilities, 1920. and the amounts of export tobacco awaiting J a n . 1 . 962,807,355 37,714,823 i 448,541,704 227,278,528 210,558,048 cargo space.77 The following table gives the Auplry. ll .. : 1,179,823,043: 48,530,911* 415,332,199j 328,135,558 353,386,528 J 1,013,719,134 34,972,322: 304,206,285 326,920,164J320,217,568 " ~ amounts of each of the principal types heldO c t . l . ; 849,199,335 30,808,5051229,703,235 267,7S9,489,283,185,141 ' : i quarterly during 1919, 1920, and 1921. .1921. ! : : ! QUANTITY OF LEAP TOBACCO HELD BY MANUFACTURERS J a n . l . . . 1,061,696,4.01. 32,492,507: 523,912,560: 237,777,164J235,9L9,234 Apr. 1. ..j 1,363,499,010 50,180,089. 571,148,382| 399,001,690 307,285,600 AND DEALERS, 1919-1921. [Pounds.] i i Total. ' Manufactured \ \ i and exported i Cigar typos. ' | types. ! 1919. Jan.l... Apr.l.. Taly 1.. Oct. 1.. 1,234,884,390 913,252,894 ' 254,309,051 i 1,627,233,87G 1,255,809,204 , 303,505,8G9 ! 1,400,963,823 : 1,012,255,690 j 323,531,210 : 1,203,769,070: 891,633,932! 302,972,044 1920. Jan.l.. Apr.l.. Julyl.. Oct.l.. 1,318,131,291 i 902,807,355 j 1,590,624,644 1,179,823,043 1,452,962,024 1,013,719,134 ! 1,271,524,630 849,199,335 1921. Jan.l.. Apr.l.. 1,446,914,469 | 1,06 L, 696,401 ! 297,471, S22 i 1,818,781,268 I 1,363,499,010 . 307,854,007 \ 283,303,899! 328,724,633 " 350,692,935 331,848,564 07,322,451 07,798,743 05,170,917 69,163,094 72,020,037 82,076,968 88,549,955 90,470,731 87,740,24G 87,428,191 By far the major part of this tobacco is held in unstemmed form, although the proportion varies as between the different districts. The largest proportion of stemmed tobacco is found in the case of the manufactured and export types, and the least in the case of the imported types. The proportions vary somewhat for the several manufactured and export types, being largest for burley, with bright tobacco second. This is seen in the following table: QUANTITIES OF UNSTEMMED AND STEMMED LEAF TOBACCO HELD BY MANUFACTURERS AND DEALERS, 1920. [Pounds.] The amount of tobacco of the manufactured Jan. 1. Apr. 1. and export types held on January 1, 1920, thus amounted to 73 per cent of the total leaf Unstemmed. i Stemmed. Unstemmed. Stemmed. held, and on January 1, 1921, to 73.4 per cent, while the figures for cigar leaf were 21.5 per Aggregate 1,179,623,879 138,507,412 1,437,166,452 153,458,192 , , , , , , 259,398,312 cent and 20.5 per cent, and for imported leaf Cigar types Imported types 69,036,241 23,905,587! 306,583,916; 22,140 717 2,983,796; 78,725,336" 3,351,632 5.5 per cent and 6.1 per cent, respectively. If Manufactured a n d 851,189,326 111,618,0291. 051,857, 200.127,965,843 values were taken, the proportion of cigar leaf export types Virginia dark 35,370,788 2,344,035 ' 42,670, 110' 5,860,771 Bright 412,184,260 36,357,441 376,4.04, 063 38,928,136 would, however, be greater. I t will be ob- Burley 165,880,7071 61, 397,821; 274;-loo! 117 273,969,162 Western d a r k . . . 202,131,701, 8, 423,317, 327,111, 396, 26,275,132 served that stocks of manufactured and export Fired 117,417,736! 1, 382,508 196,204, 473 10,223,498 type tobacco on the whole arc smallest on Henderson.. 4,5-19,313i 1, 350,023' 10,903, 300: 6,119,220 Green River. 39,363,077 4, 661,238, 57,719, 293 7,898,296 October 1 and highest on April 1, while in the One sucker.. 40,804,441 1, 029,578= 62,28-1, 330 2,031,118 case of the cigar types the low point comes on January 1 and the high point on July 1. This July 1. Oct. 1. variation is due largely to difference in date of marketing of the two types. Stocks of im• Unstemmed. Stemmed. Unstemmed. Stemmed. ported leaf apparently show no regular seasonal change. The following table shows Aggregate 1,300,157, 070 152, 80t, 954; 1 111, 531,8531159,992,777 , Cigar types 329,724, lot 20, 968,781 304,023,563 27,825,001 separately the stocks of each of the principal Imported types 85,658, 842 2, 891,113 87,518,007 2,928,724 types of manufactured and export leaf held on Manufactured a n d the same dates as those given in the table export typesa r k . . . . 884,774, 074128, 945,060 719,900,283129, 239,052 Virginia d 31,820, 5271 3, 151,795 >,634 ~ 678,871 28,129, Bright 266,736, 261! 37, 470,024 189,729, 1,339 973,896 above. Burley 259,701, 515,935 207,697, 091,910 ',579 Western dark 304,033, 887,120 260,822, It will be observed that stocks of burley and 362,256 5,885 Fired 675,031 174,497, 732 197,309, 754,941 ', the western dark types are lowest on January Henderson... 838,684 10,008, 5,333, 798,613 !,252 Green River.. 461,135 51,644, 38,772, 438,947 5,865 1, while stocks of bright tobacco, due to the One sucker... 912,270 42,219, 45,071, ""V55 earlier marketing, are lowest in July to October. fiorar twnoo Or«O 'iQSi 'i\O O'i O.(\~* W7: : Qflft Wi 0 1 «• 0 0 t Ad n\n 288 FEDERAL RESERVE BULLETIN. C. FINANCIAL REQUIREMENTS. A number of the larger dealers are incorporated, but the majority are merely partnerships. Considerable changes in the plan of capitalization took place during the years 1919-1921. Several firms have an issue of preferred stock as well as common, and in a few cases it exceeds the volume of common stock. The financial strength of the dealers as a whole varies greatly. Some dealers are so situated that they do not need to borrow at all, while others have only capital sufficient for their plant investment. A modern rehandling plant such as described above is expensive. The volume of business that is done with this plant varies greatly from season to season. During the 1919-20 season, c. g., it was said by one dealer that he could not run tobacco through his "factory," as it is often termed, quickly enough, while the following season the movement was decidedly slow. The volume of business a dealer ma}^ do on a given capital also depends on whether the dealer buys on order or on his own account, as in the former case he does not need to have capital tied up in inventory, but merely holds the tobacco while he is assembling and preparing a given lot, and thus avoids storage. The 1921 statements (generally either for January 1 or June 30) of some dealers with total resources of over $1,000,000 in general show net worth equal to from four to seven times the plant investment, although several companies have only a very small plant item. Kant includes real estate and buildings, machinery, fixtures and furniture, and automobiles. In a general way, the financial requirements of the leaf dealer who purchases tobacco on his own account, are determined by the following factors: (1) Purchases—amount and time of year; (2) expense of "handling" tobacco; (3) shocks of leaf carried; (4) sales of tobacco— amount and time of year; terms of sale. In other words, the dealer first needs funds to pay for leaf when it is delivered to him. He later will need additional funds, for preparing the tobacco. These requirements will increase until he either ceases to receive tobacco, or until his sales exceed his purchases; i. e., until a period of selling succeeds a period of buying. His need for funds, however, may not in all cases be reduced at once, for he often extends credit to those who buy from him. This naturally tends to keep up the amount of funds required, and to prevent liquidation of indebtedness incurred, the amount previously represented by inventory then being represented by receivables. As a result, the funds needed vary to some extent from season to season, as well as greatly over a longer period of time. MARCH, 192I\ Where the dealer purchases tobacco on order, his requirements are substantially similar, exept that the stocks he maintains may be very small. He may, when buying for another dealer, not put up any funds himself at all, but only pay the warehouse when he receives a remittance from his principal, and thus merely needs funds for rehandling. If he has to finance himself locally in such transactions, his requirements will nevertheless be for a short period of time only. On the other hand, when buying on order for a manufacturer, assembly of the tobacco may take a considerable period of time, and he further may arrange to extend credit, the factors in his requirements then being the same as those in the case of purchases on his own account. The needs of different dealers vary according to the composition of their business, and the extent to which they do each form. (1) Purchases of leaf tobacco by dealers from farmers are regularly made during the leaf sales warehouse season. The amount sold on the loose-leaf floors during various months was indicated in Section I of this study (September, 1921, BULLETIN, pp. 1065-1066). It will be recalled that, while the time of heavy marketing varies somewhat from year to year, tobacco in the South Carolina new bright belt moves in July and August and to a less extent in September, in the old and new bright belts of Virginia and North Carolina in September— January, inclusive, in the Virginia dark district from November — February, in the burley region from December—March, and in the western dark districts from December—April. The season was relatively late in 1920-21, but tobacco has moved freely again this year, with the exception of the burley district, where a new form of marketing is^being tried. This concentration of movement means that the dealer purchases his year's requirements during the several months listed, and passes the leaf on during the remainder of the year. Thus several dealers in the western dark districts state that from 70 to 75 per cent of their purchases during the 1920-21 season were made in December—-February, inclusive. The dealer is usually required to settle for these purchases at once, but in any event generally at least weekly (December, 1921, BULLETIN, p. 1414). He practically therefore pays cash for his tobacco at the auctions. Only to the extent that he purchases from other dealers tobacco which they themselves had previously bought, is it possible for him to obtain credit to any considerable extent other than from banks. (2) The local dealer who buys on order for another dealer either may or may not redry the tobacco. If he does not, he merely packs it in warehouse or winter order, and ships it to his principal. Two general scales of charges by the local dealer therefore apply. The charge for either operation further varies according to the grade and type of tobacco. The figure given for buying and packing in winter order ranges from 80 cents to $1.50 per hundredweight, various dealers also quoting $1 or $1.25. The figure for buying and redrying is generally given as $2 to $2.50, many specifying $2.25 also. If strips (the leaf after the stem has been pulled out) are to be made, the charge is still more, $4 and $5 being quoted by various dealers. The charge may be increased somewhat if the leaf is to be re tied also. These figures serve to give an indication of the general expense of the operation. Where the dealer himself redries tobacco which he has bought on his own account, he must pay for the fuel, labor, and material used. Air drying naturally does not call for the same expenses, but requires the dealer to hold the tobacco in unfinished form for months instead. (3) Tobacco owned by the dealer is generally held by him not longer than from 6 to 12 months, although some place the usual figure at about 8 to 9 months, and others at 12 months. At times, however, tobacco moves slowly, and may even be held for several years. This occurs very seldom, and involves the dealer in the risk of deterioration, besides requiring him to pay carrying charges. The common grades during recent seasons have had a tendency to remain in dealers' hands because of the fact that Europe on the whole has not been purchasing freely. The dealer may also have in his stock sorts of tobacco which the growing season shows will be short in the next crop, or may have accumulated a stock at very cheap prices which he is justified in holding for advance. In general, however, he aims to sell out his purchases as far as possible every year before he commences to buy the new crop. A prominent dealer in the new bright belt observes that his stocks are at a maximum on January 1 and that he endeavors to liquidate them by July 1. A dealer in the western dark districts states that his stocks are heaviest on May 1, and that they then decrease until November. Stocks, however, fluctuated very greatly from year to year during the war and just after, and comparison of two successive annual statements of the same dealer often shows great change. Extreme instances noted in the case of two western dealers when comparing the 1920 and 1921 statements were a decrease to less than onetenth for one, at the same time that the other showed almost a three fold increase. Stocks held naturally differ according to whether the dealer buys largely on order or on 92371—22 289 FEDERAL RESERVE BULLETIN. MARCH, 1922. 3 his own account. Tobacco bought on, order may, however, bo carried in stock for some time by the dealer. Fall and winter purchases may not be shipped out until the following summer. Thus the dealer's statement, in addition to the amount he actually owns, may include an item for tobacco sold but undelivered. In some statements the item appears as accounts receivable secured by tobacco held for customers, while sometimes the item ''accounts receivable secured by tobacco in warehouse7' is shown. Tobacco is sometimes shipped abroad to agents or representatives on consignment, the latter then maintaining a stock from which deliveries can bo made. Some statements list the principal foreign accounts separately. Part of the dealer's inventory may be held on joint account, and this may be represented by a separate item. Supplies, such as fuel arid hogshead material, are sometimes included with the leaf inventory, but are sometimes listed separately. The item is generally so small, however, as to make little material diffe.ro.nce. Tobacco is usually shown at cash or market value, and this is of special importance -in view of the decrease in price during the last few years. (4) Sales of tobacco owned by the dealer display a certain seasonal tendency. This tendency, however, varies from one season to another, sales being effected earlier some years than in others. On the whole, says one dealer, domestic sales are more regular than foreign sales. As already indicated, the dealer endeavors to sell his tobacco as soon after the beginning of the season as possible. In the eastern districts several dealers report largest sales in the spring and early summer. Generally speaking, howover, no certainty attaches to the business and sales may vary greatly from month to month. A dealer .may do a large proportion of his business one month and find sales dwindle greatly the following month. This is illustrated by the following figures for one eastern and one western dealer, snowing the percentage of 1921 sales made in each of the first 11 months of the year. The figures are only approximate, as the sum of the former equals 105 per cent and the sum of the latter equals 96 per cent, but they serve to give an indication of conditions. Eastern Western dealer, dealer. January February March. .* April May June : ! ' : 0. f> 12. r. JO .11 Eastern \ Western dealer, dealer. 1921 July August September October November ; I i ; i 30 3 13 4 5 I y 8 12 6 290 FEDERAL RESERVE BULLETIN. During the last few years the situation has not been one in which price pays a large role, as tobacco, it is said, either moves or will not do so at any price. This has been accentuated by the fact that foreign business has been adversely affected, due to the exchange situation. Terms on which tobacco is sold vary considerably. Arrangements where one dealer bu}^s on order for another were indicated in a previous section and need only be recalled here. Either a check is sent after invoices have been compared with the shipment of tobacco or else a sight draft is drawn and put through the bank. Statements may, however, be rendered and settlement made at regular intervals, such as weekly. A variation is seen in the case of one large dealer, who pays weekly for the green weight of leaf bought, and later for redrying. Where tobacco is bought on order for manufacturers similar arrangements may prevail. Some may pay as the tobacco is shipped, others weekly or monthly as it is bought, still others make a deposit, such as 25 per cent, and pay the remainder when shipped, while the rest pay at the close of the season, being charged interest accordingly. The last named, of course, requires the dealer to carry the purchaser and this is often done when dealers sell tobacco the€y own to the smaller manufacturer, although a considerable proportion of such sales are for cash. The time granted varies greatly, depending upon the needs of the individual case, and ranges from 30 days to four and even six months. Both open account, note and trade acceptance are used, the proportions varying to some extent between different dealers. Examination of annual statements of condition shows that for larger dealers the open account far overshadows both the note and trade acceptance. The acceptances used generally run for 30, 60, or 90 days, but it is said that renewals are often requested. Terms on foreign sales also vary greatly. They depend in large measure not only on the buyer's individual needs but also upon the country to which the sale is made. Both drafts and oj)en accounts are largely used. It is said that for several years it has been customary to draw at 60 days' sight, although in the 1919-20 season a sight draft was used instead. Ninety-day drafts are also often used, and four and six months7 bills are found, while in some cases the foreign dealer may desire considerable time and pay interest accordingly. Clean bills may be drawn on representatives abroad or documentary bills on the purchasers. Where tobacco is consigned to foreign representatives, agreement may be made to draw MARCH, 1922. for a specified proportion of the value of the shipments. Bankers' acceptances are also used to some extent on foreign sales. One dealer illustrates his situation by stating that he buys on order for a foreign customer from December 15 to March, ships in July and August, and is paid October 1. Receivables outstanding should naturally vary somewhat in amount from one season to another. They should be heaviest in the late spring and summer months and remain at a high point for some months after sales have commenced to decline. The time should vary somewhat from year to year, according to the readiness with which tobacco is sold. The seasonal tendency in the case of receivables, however, may be offset by the variety of terms which are in use, as more cash sales, e. g., may occur at the time of heaviest sales, and thus serve to hold down the volume of receivables. Several dealers in fact state that very little seasonal variation is noticeable in them. Taken together, all these factors tend to cause the dealer's financial needs to show a certain seasonal variation. This is reflected in his bank borrowing. In the eastern districts his borrowings increase from September to January, remain at a peak from January to March, and then dimmish until he has cleaned up about July 1. Dealers often make their statements as of June 30, although a considerable number use other dates between -then and October 1. In the western districts the seasonal tendency appears several months later, and dealers often make statements as of January 1. These dates are by no means universal but merely afford a general indication of the situation. The interrelation of purchases, sales, receivables, and bank borrowing is well illustrated by the following figures for a western dealer. Percentage of 1921. ; Receivables.1 Owing to banks, i 19*0. December., 10 ! 1921. January... February.. March April May June July August September. October November. December.. 35 I 25 15 ! 6.5 12.5 7 10 11 5 9 9 8 12 100 j 83 | 67 93 i 117 129 137 129 110 ! 93 78 ! 83 1 1921 average^ 100. .. a Scattered.Tobacco kept in stock on the average for 9 months. 64 82 152 162 171 131 126 102 92 52 28 28 MARCH, 1922. FEDERAL RESERVE BULLETIN. D. FINANCING ARRANGEMENTS. Two principal questions, aside from the seasonal variation just indicated, arise in connection with the arrangements which the dealer makes to finance himself—the form of the paper and the location of the financing. Certain standard situations may be distinguished in the case of these problems. Accordingly, there are several types of fairly uniform practice with respect to each problem. The banker, it has been said, generally considers the following credit elements in making a loan to a dealer: (1) His character; (2) his ability and experience as a tobacco man; (3) his tobacco collateral in the shape of warehouse receipts; (4) his financial worth. In both the burley and western dark districts warehouse receipts are very generally used by banks as collateral for loans to dealers, unless the dealer happens to be ver}^ strong and entitled to large credit upon his financial statement. Neglecting export business, the usual practice for the larger dealer is to borrow on his straight note. One dealer in the eastern districts told the writer that he had always borrowed in this way since commencing business in the eighties, at which time his banker had said that no collateral which he could put up would enable him to get the loan more cheaply. This emphasizes the personal basis of the accommodation, and the close contact which exists between the dealer and his banker. In fact, the criticism has been made that New York banks formerly did not know how to finance the business, as they insisted upon collateral. Only in case such a dealer's regular line of credit is exhausted is collateral regularly used. While many notes are single name, some are indorsed, e. g., by the stockholders in a closed corporation, or by a corporation for its subsidiaries. Receivables, both notes and trade acceptances, are also rediscounted to some extent, at times only when the regular line of credit is exhausted. Warehouse receipts are placed third among the credit elements for several reasons. Much tobacco is stored by the dealer on his own premises. This is more convenient for him, as the tobacco requires rehandling, sampling, etc. Furthermore, tobacco grades are not standardized, and each buyer who places an order has his individual peculiarities as to color of leaf, etc. The warehouse receipt ordinarily merely calls for one hogshead of tobacco, without specifying grade or type. The tobacco itself by no means has a ready market at all times,, and may change greatly in value. Where tobacco is pledged, the bank must either have 291 several experts to appraise it, which is expensive, or else accept the dealer's word. In the latter case, however, the dealer's character bulks large, as the basis for the advance is in many respects the same as if the dealer had merely given his straight note. Varying percentages are given for which a loan is made, such as 60 to 75 per cent of the value or cost, according to whether or not the bank employs experts to determine the value. In a time of falling prices, such as found during the past several years, the limitations of a cost basis are apparent. Distinction in the percentage loaned may also be made between common and fine grades, as the latter have had a much readier market recently. It should also be noted that where a warehouse receipt is used, each transaction is financed by itself, and the line of credit method is not employed. Where export business is done on open account, the dealer finances himself in precisely the same way as for his domestic needs. As seen above, notes or drafts may be used, or banker's acceptances drawn under a letter of credit opened in his favor. In the former case the notes or drafts drawn on the foreign buyer may be discounted or taken for collection. In the latter case the banker's acceptances will be negotiated by an American bank. In these cases each individual transaction is handled separately, and the line of credit system is not used. Ninety days is the usual maturity. Several banks state that some bankers' acceptances are drawn for dealers or manufacturers against warehouse receipts, but with the majority their use is confined to foreign trade finance. With few exceptions, the dealer generally does not borrow in the open market. This is usually ascribed to the uncertainty of sales, and the fact that liquidation by the dealer can not be expected within any "fixed period, so that he must be carried until he sells his tobacco. He, therefore, prefers to make arrangements directly with his banks because of the greater sense of security which he then has. Small dealers obtain sufficient funds from their local banks, but the larger dealers in the East find it necessary to borrow heavily in Richmond and New York. Baltimore is also used by some dealers. In certain cases there is, of course, a combination of centers, according to the dealer's particular requirements, and borrowing in Richmond may be combined with borrowing in several large markets, such as Danville or some of the eastern North Carolina centers. In the western districts Louisville and Cincinnati are naturally the leadingcenters. 292 FEDEKAL RESERVE BULLETIN. E. THE BURLEY TOBACCO GROWERS COOPERATIVE ASSOCIATION.1 With the past year there has been formed in Kentucky a cooperative association for the marketing of burley tobacco, modeled on the plan of various associations in California. Growers of at least 75 per cent of the entire burley crop have pledged all the tobacco produced by them within the next five years. The association is incorporated under an act of the Kentucky Legislature authorizing the formation of such associations for marketing cooperatively agricultural products. The burley section is divided into districts, and almost all of the burley loose-leaf warehouses in those districts are consolidated into warehouse corporations to receive and warehouse the crop. These warehouse corporations are controlled by the association, but they are entirely separate corporations and are licensed under the Federal warehousing act. The association has title to the tobacco and may either sell the tobacco at public or private sale in loose-leaf form, or may have it redried and placed in warehouses to be marketed to the best advantage. This association is now operating on the 1921 crop and it is, therefore, the largest single leaftobacco dealer in the entire tobacco trade. The crop this y-ear was financed in the following manner: A meeting of the bankers in the burley district was called at Lexington, Ky. Practically every bank in that district pledged the amount it would loan to the Burley Tobacco Growers Association at that meeting, or soon thereafter. The result was that a revolving fund of a little more than $5,000,000 was pledged. The purpose of this revolving fund was to make the first payment to the grower and to take care of the cost of handling the tobacco, either for immediate sale in loose-leaf form or for placing it in the warehouse. These lending banks were secured by deed of trust from the Burley Tobacco Growers Association to a trust company in Lexington, by which title to all of the tobacco received by the association at any of its warehouses passed to the trustee for the benefit of the lending banks pledging the revolving fund. The banks loaned their money against notes of the Burley Tobacco Growers Association, each of which was registered by the trustee and named as one of those secured by the tobacco under the trust agreement. The trustee paid out these funds to the growers on a basis of 50 per cent of a loan value previously fixed by a committee of expert tobacco men for the various iTliis section has been kindly prepared by Mr. N. H. Dosker, vice president of the National Bank of Kentucky, Louisville, Ky. MARCH, 1922. types and grades established by the association. These payments amounted to about 40 per cent of the market value of that tobacco. The expenses for handling and redrying were limited to 2£ cents per pound. A number of very large sales have already been made in losse-Jeaf form to the buyers, principally from the ranks of the four large manufacturing companies. Arrangements have been made with the War Finance Corporation at Washington to finance the association on warehouse receipts to the extent of $10,000,000. From the success that the association has had in disposing of part of its tobacco in green condition in loose-leaf form on the floors of its warehouses, it is highly improbable that it will be required to call upon the War Finance Corporation for the full amount of the $10,000,000 of permanent financing arranged for, or it may not be necessary to call upon it at all. One of the principal advantages to be derived from this method of handling tobacco is that the association divides all of the burley crop into 12 main types, with various subgrades, so that there are in all 52 grades of tobacco. The most expert tobacco growers have been obtained and all of the leaf delivered to their warehouses will be graded into one or the other of these 52 grades. When placed in hogsheads each hogshead will contain nothing but leaf of that definite grade, and each warehouse receipt will call for a certain definite number of pounds of tobacco all of a certain definite type. This is the consummation which bankers have hoped could be attained, but because of the multiplicity of management of warehouses has never before been possible. It is the greatest single advance ever made in the tobacco trade and it should place loans on tobacco warehoused under this plan on a basis with any other properly warehoused commodity. INDEXES OF TRADE AND PRODUCTION. A number of indexes of agricultural and industrial activity have been developed in order to present past and future trends of business activity in a more compact and better coordinated form. The material for this purpose has been obtained from the physical volume of trade section of the BULLETIN. At the present time the physical volume of trade section contains over 100 different series of data which measure the current activity of business. After analyzing this material, it was determined to use only direct measures of domestic business, as shown by commodity production MARCH, 1922. FEDERAL RESERVE BULLETIN. 293 and movement. Accordingly, the following American Government and people, so that its 55 series of data for agricultural or industrial value was very doubtful and that year also was products were selected for use in composites: omitted. This narrowed the period covered by the study to the months from January, 1919, to date. Data. Source. In the selection of a base for relatives the Wheat receipts at 17 interior Compiled from reports of chambers of three chief possibilities were the use of a prewar centers. commerce. base, the use of the postwar years 1919 and 1920 Do. Corn receipts at 17 interior centers. combined, or the use of one of these years alone. Oats receipts at 17 interior cenDo. The idea of a prewar base was eliminated, ters. Rye receipts at 17 interior cenDo. because such a base was not available for certers. Barley receipts at 17 interior Do. tain important series and because the years centers. prior to 1914 do not measure accurately the New Orleans Cotton Exchange. Cotton sight receipts U . S . Bureau of the Census. Cottonseed receipts relative importance of certain industries in the Compiled from State reports. Tobacco leaf sales Cattle receipts at 59 markets... U. S. Bureau of Markets. postwar period. On the other hand, it did not Calf receipts at 59 markets Do. seem wise to use 1920 as a base either alone Sheep receipts at 59 markets... Do. Hog receipts at 59 markets Do. or with 1919, as it was marked by a great Orange shipments (California). California Fruit News. Lemon shipments (California). depression in certain industries (e. g., wool, silk, Do. Iron production Iron Age. copper, etc.). The use of the average of the Copper production American Bureau of '.Metal Statistics. Zinc production American Zinc Institute. months of the year 1919 as a base is not ideal, Lead production American Bureau of Metal Statistics. Bituminous coal production... U. S. Geological Survey. as the period is rather short and is also someAnthracite coal production Do. what distorted. However, it seems probable drudo petroleum production... Do. Wheat Hour production Russell's Commercial News. that the inactivity in the early part of the year Cattle slaughtered U. S. Bureau of Animal Industry. tended to balance the great activity in the Calves slaughtered Do. Sheep slaughtered Do. latter part and make the monthly average Hogs slaughtered : Do. Sugar melted (seven cities) Weekly Statistical Sugar Trade Jour- reasonably normal for the great majority of nal. " industries. In view of all these considerations Cotton consumption— U. S. Bureau of the Census. Wool consumption U. S. Bureau of Markets. it was deemed best for the purpose of this study Silk consumption The Sill. Association of AmericaSole leather production. Tanners' Council of the United States to base all the relatives on the average monthly of America. Douglas fir production West Coast Lumbermen's Association. production or distribution of commodities in Yellow pine production ] Southern Pine Association. the year 1919. Cement production j U. S. Geological Survey. Naval Stores Review and chambers of Hosin receipts at 3 centers Having determined the period of time to be commerce. Turpentine receipts at 3 centers Do. covered and the base to be used in calculating LC(L Cotton seed crushed U. S. Bureau of the Census. Wood pulp production relatives, the original data were further anaFederal Trade Commission. Newsprint production Do. lyzed. The commodities were divided into Hook paper production Do. Fine paper production Do. three main groups, according to the nature of Wrapping paper production... Do. the processes employed in their preparation— Paperboard production Do. Gasoline production U. S. Bureau of Mines. agricultural products, extracted minerals, and Kerosene production Do. Fuel oil production— Do. manufactures. The agricultural products are Lubricatnig oil production i Do. Manufactured tobacco produc- j U. S. Commissioner of Internal Reve- those raised on the farms, their production tion. I nue. isually requires a year, and their supply is Cigarettes (small) production..! Do. Cigars (large) production j Do. ietermined once a year. The extracted minSteel ingot production American Iron and Steel Instiinlc. erals are natural resources found in restricted Locomotive production Compiled from company reports. Vessels built ' U. S." Bureau of Navigation. areas and are in most cases definitely limited as Beehive coke production •, U. S. Geological Survey. Tin consumption , N. V. Metal Kxehango. to ultimate supply. Manufactures, on the other hand, are directly prepared by human beings It then became necessary to determine the and their available supply may be increased, as number of months to be covered by the study well as diminished, within a short period of and the base period to be used for relatives. ime. It is possible to measure production of It would be desirable to start a comparison minerals and manufactures by monthly periods, of this kind in the years prior to the World but agricultural production can only be measWar, but this would necessitate the omission ured annually. In so far as agricultural producof a large number of series which were first tion enters into the nation's business activity, collected and published during the period however, its condition is perhaps more accuof participation by the United States in the rately measured by the movement to markets war. As a large proportion of the material than by production. Consequently it was would become unavailable in this way, it did decided to measure activity in mining and not seem wise to carry the study back further manufacturing by actual monthly production, than 1918. On the other hand, the year 1918 but to measure agricultural activity by monthly was distorted by the war activities of the receipts from the farms at primary markets. 294 .L'lODERAL ."RESERVE BULT,ETIX. As there is a fundamental difference in these systems of measurement, as well as in the factors measured, no attempt was made to combine these three main groups of commodities. After each commodity series had been converted into relatives on a base of average monthly activity in 1919 it seemed advisable to summarize the results of the study by grouping together all closely related products (e. g., manufactured foods) and finally to obtain a combined measure for each of the three main groups (e. g.; manufactures). Experiments were made with three methods of MARCH, 1922. than the geometric method of averaging. Furthermore, in the averaging of actual figures of production, which on the whole are quite inclusive, there seems no justification for minimizing increases over the base (which would result from the use of the geometric average). The system of weights was next considered. As the commodities are measured in varying units the best system of determining their relative importance seemed to be their value. Two methods of determining relative value are the use of census statistics of value and the use of market prices. As the census statistics for 1919 have not yet been published in final INDEX NUMBERS OF DOMESTIC BUSSMESS 1919 -- 1922 PER PER CENT CENT 140 140 \ 130 / 120 ll 110 too m 90 80 1 V\ >\ i Ley 1 70 60 130 \ V / r I \ \ '•'I v j \ Ml \ I Y 120 \ 110 \ 100 \ ..... 0 V 90 N 80 70 V 60 50 50 40 40 \GRICULTURE FINING MANUFACTURE 30 30 20 20 10 0 10 J. F. M. A. M. J. J. A. S. 0. N. D. J. F. M. A. M. J. J. A. S. 0- N. D. J. F. M. A. M. J. J. A. S. 0. N. D. J. F. M. A. M. J. J. A. S. 0. N. D. 1919 1920 combining the series of relatives of certain mineral products—the unweighted arithmetic average; the weighted arithmetic average, and the weighted geometric average. The results obtained by use of the weighted arithmetic average and the weighted geometric average corresponded very closely, while there was considerable divergence in the case of the unweighted arithmetic average. The use of the weighted arithmetic average (sometimes known as the method of aggregates) was determined upon, as the curve thus obtained is the steadiest, is very nearly the same as that obtained by the geometric method, and as its computation is more readily understand able- 1921 1922 form and as it might be very difficult to coordinate census classifications of certain products with other classifications, each series was weighted by its average price.in the year 1919 (i. e., for each month of the period covered the production is multiplied by the 1919 average price in dollars). A further correction was made for each manufactured product by multiplying its price by the average percentage added by manufacture in that industry during the census years 1909 and 1914, thus eliminating the cost of materials used in manufacture which are included in the other two groups. Corrective factors were used also in combining the commodities into groups in the case MARCH, 1922. of the index of agricultural movements. The actual receipts of each of the grain crops except corn were weighted by the average ratio between the total crop production in 1919 and amount marketed at reporting centers during the ensuing crop year. (A check was made to make certain that this ratio did not fluctuate greatly from year to year). Corn receipts were not weighted, as hogs and cattle on the farms consume most of the corn crop which is not received at the primary markets, and receipts of these animals are included separately in the index. The three sets of indexes obtained for agricultural movements, mineral production, and manufacturing are shown in the following tables, while the comparative movement of the group indexes arc reproduced in the accompanying chart. AGRICULTURAL MOVEMENTS. 1919. January February March April May June July August September... October November... December 1920. March April 116.1 74.7 72.3 74.6 74.7 70.6 i 95. 8 i 104. 4 i 117.7 j 143.9 ! : 136. 8 126. 3 | , ! i ; May June July August September October November December • ! 1921. January February March April May June July August September October November December ! 1 ! ToCotton.l Fruit. bacco. Total Total J agricul-: ani- ! ture. 1 mals. Date. January February 295 FEDERAL RESERVE BULLETIN. i | ! | j : • : | ; ; 122. 4 : 85.5 ! 78.3 86.4 i 89.9 84.3 ! 91.1 86.5 I 103. 8 130.3 j 96.9 58.7 • 69.8 : 58.7 62.5 , 106. 6 128. 9 i 171.7 ! 155.2 ! 118.6 j 88. 7 i 116.' 5 I 83.7 I i 108.3 ! 76.7 i 84.9 ! 73.9 | 60.8 70.5 ! 91.5 , 9.1.3 i 69.9 70.9 ! 79.2 l 85.1 87.3 i 106.2 99.4 i 120. 5 101.1 i 12o. 9 H 7 . 8 ; 101.2 84.2 : 83.3 ! 71.5 i 69.6 ; 49.5 64.1 I 68.6 83.5 ' 113.3 \ 130.9 I 114.3 i 94.7 j 84. 8 1 105.0 96.5 81.1 73.9 79.4 76.4 66.3 74.2 • 73.6 77.3 . 82.2 81.9 , 93.4 68.1 • 116.7 85. 4 . 115.3 85.9 ' 130.9 107.0 : 104.6 i 9 9 . 2 ; 92. 4 i 82.0 ' 97.9 66.7 77. 5 60.5 71.7 96.0 151.9 195.5 151.6 121. 3 65.3 79.0 111.7 I 83.1 i 78.9 j I 133. 0 I 74.4 : 57.1 • 49. 4 : I 53.7 57.5 ! 49.4 , 28.3 > 67.8 i 191.1 235. 9 ! 202. 5 i 84.5 i 89.5 ! 140. 2 • 151.4 172.4 ; 120.6 84.1 51. 8 52.6 76.5 86.3 90.1 ! 148.4 ! 97. 5 72.7 i 48.4 i 31.1 , 23.2 i 30.5; 26.6 : 72.9 : 155.1 ! 179.3 151. 2 82. 5 ! 125. 2 ( 98.6 ! 149.3 : 113.6 . 81.3 ' 57.3 I 43. 7 i 39.1 I 40. 2 ! : 96.6 110. 8 77.1 57. 8 . 51. 3 67. 4 57. 8 • 52. 7 56.0 114.7 195.3 163.2 : 133. 4 94.6 ; 195. 7 95. 5 . 297. 4 137. 4 181.1 175.1 24.1 139.0 • 8.9 183.3 : 4.1 123. 8 12.1 86.4 • 54.7 79.9 79.3 69.9 107.6 34. 7 ' 188.4 83. 6 69.5 Combination of 14 independent series. MINERAL PRODUCTS. Total ! Bi- • AnDate. il ous p<? ^ 1919. J a n u a r y . . . . 111.2 , 108.7 j 106.4 | 95.9 129.6 126.4 F e b r u a r y . . 89.1 ' 8 2 . 7 ! 69.4 91.6 115.3 ! 104.0 ' March ! 93.1 : 88.3 ' 70.6 96.1 121.2 j 95.0 . April • 89.9': 84.2 ; 9 3 . 7 : 93.4 97. 2 . 92.0 ! 1 Combination of 7 independent series. 72.0 I MINERAL PRODUCTS—Continued. Date. Copper. Zinc. Lead. !££•!«*• II 1919. ! May i 94.8; June i 94.9 : July ! 106.4 ! August ! 109.6 September., 111.4 October....: 119.7 November .| 78.8 December.. 100.6 98.3 97.1 111.8 112.3 124.2 147.3 48.9 95.9 1920. January... .' 117.7 February.. J 104.7 March . 119.9 April. .j 101.1 May .; 108.3 June .' 11.6.2 July .: 11.6.7 August— ., 121.9 September .' 113.2 October... .' 126.1 November. j 121.1 December. . 121.7 127.5 ; 103.1 : 107. 3 105.2 : 88.6 ! 104.0 122.7 i 106.7 !, 113. 8 99.4 i 81. 5 113.1 102.1 j .1.08.1 i 1.16.0 118.2 ! 111.0 i 1.1.7.4 117.9 i 112.2 i 121.4 128.1 ! 109.0 : 124.1 128. 8 ' 63.1 ! 119.2 136. 6 | 109.6 !I 125.8 134. 8 ; 101.2 123.0 136. 5 | 115.0 ! 123.8 1921. ! January 1 February... March : : April May : June i July " August , September. October November.. December.. 31.3 53.6 160. 3 238. 9 128.4 174.0 171. 4 150. 3 62.1 16.3 8.0 5.3 16.0 61.3 86.6 190. 4 1.88. 9 144.3 . Total i Bi- i AnPe! 1Tlin - I tumi-! thra- tronous | cite leum. Iron. coal. j 1.02,4 i 100.7 I 108.5 I 110.1 I 102.0 j 117.6 ! 107.1 i 110.1 95.3 100.6 107.7 , 107. 6 107.0 105.9 105.2 : 103.3 ' 82.7 , 86.3 ' 83.0 ' 89.3 | 93. 5 107.6 100.6 ' 97.6 i 101.2 73.1 ' 107.2 93.9 i 109.2 103.3 ! 95.9 118.3 116.9 132,4 107. 5 117.1 119.4 J20.3 123. 5 122.8 129.2 115.1 106.1 113.5 ' 110.5 109.4 . 111.7 112.0 i 12? 8 108.1 • 115.5 107.0 ! 115.5 ! 108.1 104.3 102.2 ! 102.3 108. 4 ! 108.4 I 97.7 i 92.2 98.0 : 74.4 I 99.3 i 84.8 i 89.1 ! 72.4 ! . . . i 102.8 105.5 : 100.8 120. 3 87.5 80. 8 i .104.8 111.2 86.8 79.6 i 100.8 130.2 78.7 127.3 72.2 i 104.8 84.7 87.3 ! 102.0 133.2 : 83.9 88.7 105.9 128.4 76.7 79.6 95.9 128.1 82.8 90.5 . 97.9 130.1 81.6 : 91.9 ' 96.9 116.3 93.9 114.6 103.1 113.2 86.0 94.2 ' 93.3 120.0 82.0 81.1 81.4 133.3 94. 8 j 80.0 I 65.9 i 79.5 i 76.0 71.2 ! 45.2 i 73.4 62.6 83.0 40.0 76.6 46. 8 47.6 . 42.1 ; 69.0 47.9 22.6 :'' 45.9 ;! 72.9 18.1 49.5 74.8 41.8 33. 9 16.6 i 39.4 ,' 73.4 19.9 ' 37.2 ! 82.7 37.4 38.7 19. 5 i 36.6 , 79.5 83.0 48.9 22.9 : 37.0 55.5 20. 8 i 53.8 j . . . 64.7 17.3 56.0 ... PRODUCTION OF MANUFACTURED GOODS. 1919. January j February— March. April.. May June.. July.. August September..-j October [ November...! December.. .1 104.7! 89.2' 95.5| 95.3! 99.61 98.6j 102.3i 108.7! 97.2i 108.41 101.1! 99.4: 1920. ! January j February— March April M y June ! July ! August I September...! October I November... i December., .j HO.o; 118.0 99.2! 113.9 110.4' 131.2 301.3" 104.9 101.31 114.7 101.8! 1.18.5 93.5i 111.5 98.6i 119.3 96.3! 119.3 95.9i 119.9 89. Oj 104.9 78.61 93.0 1921. January ' February—l March..' April ; May , June '' July j August 1 September... ! October November... December... 1 84.51 77.4! 87.8 S3.1 84.4! 87.1 80. l! 90.7 90.2 94.6j! 89. o 81.3 103.2i 103.2j 113.8! 115.8! 121.2! 104.7 94.21 106.8! 98.5' 98.7' 83.8, 66.9 87.6 67.7, 69.6 75. i62.5 89.3! 48.3 87.51: 50.3 100.4 9.9 89.6: 31.9 85.3! 45.3 99.7j 46.7 92.9, 6-1.3J 103.1; 66.0! 100. t 56.81 92.2; 115.21 102.0 115.5 101.01 98.8 108.6 118. lj 108.3 114.9" 121.2 105.7", 111.6 121.9 H0.9 1.02.9 120.9 116.1' 93.5. 118. Oj 117.7' 83.1, 116.21 124.0: 85. 8114.21 125.9: 80.1! 116.8! 130.9; 69.6 109.1 128.5! 58.3' 97.6 130.3: 50.3. 90. 81.7i 94.0! 81. ?! 90.9j 95.2! 80.7| 70.5 ! 73.3i 77.8; 70. II 70.5| 127.71 72.0 106.8; 7 3 . !•• 113.0i 90.8 113.8' 91.5' 114.7, 95.0 : 110.1. 101.9 108.3: 94.5 1 110.61 103.4= 110.21 105.5 119.7. 104.81 11.7. l.;! 100.4, 119.6 99.7! 63. oi 87.8 79.5 84.4 81.7J 72,4j 70.2! 65.6! 75.6' 78.6i 90.8j 95.8! 94.7! Combination of 34 independent series. 62,8[ 72. 75. 83.2i 81.1 76.3! 85.7| 80.3j 86.21 90.9; 93.0 113.2, 114.2 85.1 1 98.8 92.7'. 122.8 79.3' 107.7 88.2!. 11.0.9 86.51 113. 5 84.8! 99.0 86.01 101.5 81.6| 104.7 83.2 104.3 91.2 91.1 88.0 71.7 88.2 77.4 88.1 84.0 82.2 85.1 85.5 98.5 92.8 99.8 89.4 85.2 87.8 94.1 106.1 95.5 99.3 106.8 100.6 117.2 111. 6 115.8 102.9 76.8 296 •FEDERAL RESERVE BULLETIN. A comparison of these three indexes indicates that, although the total volume of agricultural movements was somewhat higher in 1919 than in either 1920 or 1921, the monthly changes in volume of shipments are due largely to seasonal conditions. The tendency of farmers to hold their crops in the 1920-21 season was clearly shown both by the fact that the peak point was one month later and the fact that the volume was much less in the fall of 1920 and greater in the spring of 1921 than the year before. Manufacturing activity suffered a steady decline from March, 1920, to February, 1921, and fluctuated in the spring of 1921, showing some tendency to recover in the late summer. Operations in extractive industries, on the other hand, were maintained at a high level throughout 1920, but were severely contracted from" February, 1921, to September, 1921. Each of these group indexes of business indicates an encouraging recovery of activity in the early fall of 1921, which was not, however, maintained during the months of November and December. COMMERCIAL CREDIT PRACTICE OF JAPANESE BANKS. I. INTRODUCTION—DEVELOPMENT . OF NESE EXCHANGE BANKS. JAPA- The following study presents a survey of the commercial credit practice of Japanese banks, and should be of interest because of the importance of Japanese-American trade relations. From one-fourth to one-third of the total foreign trade of Japan is conducted with the United States, which is Japan's best customer. The development of the banking system for financing this trade has passed through a rapid evolution. In the early history of Japan's commerce it was financed almost entirely by branches and agencies of British, European, and later, American banks. A small part of this trade was financed by some of the old private firms of Japan which had been engaged for several centuries both in banking and in merchandising. The next period in the evolution of Japanese banking was initiated by the founding of native exchange banks. They were ordinary commercial banks engaged both in domestic and foreign business and operated under either a special or general charter. An example of the former is the Yokohama Specie Bank which organized in 1880 was under a special imperial charter for the purpose of stabilizing the currency of Japan and for facilitating its foreign trade. Some of these special chartered institutions were given definite territories for their MARCH, 1922. activities, as, for example, the Bank of Taiwan which was formed, to develop the resources of Formosa and the trade with South China and the South Sea Islands, and the Bank of Chosen recently established to expand Japan's trade in Korea (Chosen) and in Manchuria. In addition, a number of the old private banks were incorporated under the general chartering act of the Imperial Government. Although the two types of banks, special and general chartered, differ as to form of incorporation, their operations are practically the same in nature. These native organizations soon entered into active competition with the branches of foreign banks, and in time the former took over the financing of the greater part of the exports from Japan, while the latter were able to retain control over the handling of the country's imports. This division of the field proved favorable to the Japanese banks which accumulated gold balances abroad, while foreign banks which held silver balances in Japan endured heavy losses due to the fall in the price of silver. With the beginning of the century, the Japanese banks established their own branches in foreign money centers and so were in a position to handle imports to Japan as well as exports. The latest stage in the financing of Japanese foreign trade came with the outbreak of the war in 1914. The branches of German banks were eliminated entirely, and even the British agencies were forced to restrict their credit activities. On the other hand, American banks increased in relative importance, and the Japanese exchange banks were likewise able enormously to augment their business. The former increased the number of their branches in Japan, while the latter established new agencies in the United States, especially in New York, San Francisco, and Seattle. Because of this expanded American and Japanese bank organization and the dislocation of the British money market, the dollar and yen exchange to a large extent replaced sterling as a means of settling balances between the United States and Japan. Formerly the method of paying for exports from Japan was almost entirely through London, but in the past few years direct exchange relations have been established. This movement has been accelerated by the growth of an acceptance market in both Yokohama and New York. The period since 1914 has also been marked by a change in the , technique of financing Japanese imports. For ! years they were financed largely by the authority to purchase and by trade drafts, but these methods have given way to the use of the letter of credit and bankers' bills. Consideration will therefore be given mainly to the operation of Japanese letters of credit. FEDERAL RESERVE BULLETIN.. MARCH, 1922. This study does not present many varied or new technicalities. Japanese commercial credit practice is quite uniform because the financing of foreign trade has been controlled by a small number of banks located in Yokohama, Tokyo, Kobe, and Osaka. The practice of these institutions to a large extent has been modeled after the usage of British and American banks, and so attention need be given only to those phases which are peculiar to Japanese operations. II. LETTER OF CREDIT. 1. Opening of credit.—A Japanese bank in issuing a letter of credit may base its action merely on the credit standing of the importer or may require him to deposit some form of collateral. When the Japanese applicant is of uncertain credit standing or is not in a position to furnish collateral, he may still be able to obtain a credit by inducing another party to act as his guarantor. The latter binds himself to reimburse the bank for all its advances if the opener fails to meet his obligations. This form of personally indorsed credit, while quite common in Japan and in fact throughout the entire Far East, is not extensively used in the United States or Great Britain. Japanese banks usually require openers of credits to present formal applications and also to sign regular contracts, which are quite similar in content to the forms employed by American banks. A rather peculiar Japanese form is presented below: I/We shall, feel obliged by your forwarding instructions by cable/letter to your agents in to make payment or payments as follows: To M. — Anv sum or sums not exceeding in all say Against a draft; or drafts at — days sight drawn by the said firm-upon the X Bank. Ltd., , for my/our account. Against a shipment or shipments of — — Not later than . the drafts to be accompanied by a full set of shipping documents .relating to the abovementioned merchandise ordered by me us viz: Invoices Bills of lading Policies of insurance In consideration of your granting me/us the above request, T /we hereby agree and engage to accept a draft or drafts at usance of days sight drawn on me us by your bank in reimbursement for the amount so paid by your agents, and duly to pay the amount at maturity at exchange ol' plus interest thereon at the rate of - — per cent per annum, and also I/we undertake to hold myself/ourselves liable to you as per conditions set forth in the letter of guarantee signed by me/us. This application calls for an instrument which is somewhat different from the ordinary letter of credit. It is used only between the home office and its foreign agency, which is instructed to pay the beneficiary cash for his 297 documents, and the home office obtains reimbursement by drawing an interest-bearing draft on the importer. Because of distance, a Japanese bank in issuing a letter of credit to a foreign seller, say in New York, may first send him a cablegram or permit him to effect his negotiation before the arrival of the letter itself. lie is then instructed to note on his draft'' Drawn under letter of credit en route.77 2. Issuing of letter of credit.—Japanese banks seldom issue their letters of credits to the beneficiaries directly, but instead notify them either through agents or correspondents. As mentioned above, Japanese banks operate a considerable number of agencies in the more important commercial centers throughout the world and elsewhere maintain a network of correspondents. When they arc asked to advise a credit of a Japanese bank, the question of confirmation naturally arises. The distinction between irrevocable and confirmed credits is not sharply drawn by Japanese banks. One bank, in answering the question of the Division of Analysis and Research regarding confirmation, states that if requested by a foreign bank to notify a Japanese beneficiary of the opening of an irrevocable credit, it would be inclined to add its confirmation unless instructed to the contrary. Another bank clearly differentiates between these two types of credits as evidenced by its answer, which reads as follows: "When an American bank issues an irrevocable letter of credit and does not request the Japanese bank to confirm the same, it is an irrevocable unconfirmed letter of credit; therefore an irrevocable credit 77 not is always confirmed by the Japanese bank. As a matter of actual practice, American banks issuing their irrevocable credits in favor of Japanese exporters generally expect Japanese banks merely to notify the beneficiaries and not to add their confirmation. On the other hand, in the financing of an importation to Japan, the beneficiary abroad receives a credit from the local agent and not from the home office of the Japanese bank, and so the credit is either revocable or irrevocable by the agency without involving any act of confirmation. It is therefore essential for American importers and bankers carefully to specify whether credits should be advised by Japanese banks as confirmed or unconfirmed by them. On the subject of cancellation, Japanese banks generally hold that they have the right to rescind a revocable unconfirmed advice at any time without the necessity of giving notice of their action to the beneficiary. The revocable unconfirmed advice of one Japanese bank to the beneficiary contains the statement "We 298 FEDERAL RESERVE B U L L E T I N . have no authority from our correspondents to confirm this credit. The credit is therefore subject to cancellation with or without notice and the above particulars are for your guidance only." Another bank explains its policy as follows: "We have the understanding that the validity of such revocation starts at any time that we receive such instruction without notice to the beneficiary." The same institution adds the following comment: "In case of an unconfirmed revocable credit, 7i. e., unconfirmed with 'subject to cancellation clause, we act only as advising agents and have no right to revoke the credit unless we receive instructions from the issuing bank to this effect." 3. Transferring of credit.—Japanese banks do not usually permit a beneficiary to transfer his credit to another party. The right of assignment is, however, recognized by a few banks which insert in a form drawn especially for this purpose the expression that the credit is available b}^ the accreditoe "or to any nominee or nominees appointed by him in writing." As explained in the FEDERAL RESERVE BULLETIN (February, 1921), some banks in the United States make it a practice, at the request of the beneficiary of a credit, to issue an ancillary instrument in favor of a second party who is supplying or manufacturing the merchandise. This practice is not followed by Japanese banks which, if necessary, prefer to cancel the original credit and to open a new credit. 4. Presenting of documents.—Japanese banks naturally will accept documents only when they are drawn in conformity with the terms specified in the letter of credit. When these conditions are not stipulated, the procedure of handling shipping documents in a general way is governed by the same principles of commercial usage which apply in the United States. Japanese bills of lading must conform to an imperial statute, which is quite similar in content to the Barter Act of the United States. The''received for shipment" instrument is not regarded as a bill of lading in Japan. Some banks will accept on board bills of lading only, while others follow the rule of compelling beneficiaries to furnish on board bills of lading unless instructed to accept "received for shipment" bills. This policy is the inverse of American usage, which recognizes the right of an American bank to accept a "received for shipment" bill of lading unless advised to the contrary. Japanese banks do not discriminate against the offering of certificates of insurance under blanket policies and do not insist upon the production of the policies themselves. However, brokers7 cover notes are not regarded as satisfactory. The remaining documents of the commercial set are similar in nature to those which are used in the United States. MARCH, 1922. Japanese bankers are usually unwilling to permit a beneficiary to present documents covering merely a partial and not a complete shipment. On this subject one bank writes: Whon the terms of the letter of credit include the quantity of the goods ordered, we do not negotiate drafts accompanied by documents which represent partial or separate shipments, unless we receive specific authority to this effect from the issuing bank. We do, however, negotiate them when there is no mention of the quantity in the letter of credit and also when no such stipulation against this action by the issuing bank. 5. Negotiation ofdrafts.—As mentioned above, Japanese banks issue most of their credits through their agents or correspondents. Upon notification by an agent, the beneficiary of such a credit is not usually allowed to sell his drafts to banks at large, but is bound to confine his negotiation with the advising bank only. Accordingly, the Japanese issuing bank usually gives the notifying bank the following instruction: "Kindly advise the beneficiary of the above credit and also of the condition that this credit shall be valid only when the drafts are negotiated through your bank." Japanese credits, if notified by agents, may therefore be described as special rather than general. Most Japanese banks do not claim the right of recourse to the beneficiary on drafts which lie has drawn under letters of credit, whether revocable or irrevocable. The general policy of Japanese banks is well stated in one answer, which reads— An issuing bank has not the right of recourse to the beneficiary irrespective of "irrevocable" or "revocable," unless especially stipulated to that effect in the credit. If there is no mention in the letter of credit, only the bona fide negotiator of the draft, excluding the issuing bank and the confirming bank, has the right of recourse to the drawer. 6. Expiration of credit.—Japanese banks quite naturally refuse to honor documents which are presented after the date of expiration of the credit. The question was raised by the Division of Analysis and Research as to the policy which a bank would follow if the Japanese beneficiary presented before the date of expiration documents which were unacceptable and Avhich were again presented in cor rected form after the termination of his credit. To this question all banks replied that the beneficiary was not entitled to payment under these conditions. Letters of credit frequently contain an expression calling for "prompt shipment." Japanese banks in their answer express a dislike for this statement because of its indefiniteness. They interpret the length of time within which the exporter must make shipment under such a credit variously from one week to ten days. 7. Reimbursement of credit.—Reimbursement between the notifier and issuer is effected by the former debiting the account of the latter, or MARCH, 1922. FEDERAL RESERVE BULLETIN. 299 drawing drafts on the latter. The issuing bank in turn may obtain cash from the opener who is importing the goods or may draw a draft on him. This bill he has agreed to accept according to the terms of his application, which also specifies the rate of interest to be paid. In consideration of your granting me/us the above request I/we hereby engage to accept and duly pay the draft or drafts drawn as above said, and guarantee that I/we shall not cause you any loss or losses in consequence of such shipment or shipments being delayed or the goods turning out on arrival to be of defective quality, or under any circumstances whatever irrespective of the goods. III. AUTHORITY TO PURCHASE. The bank in turn acknowledges the receipt of the application and signifies its approval in the following form: Transactions in foreign trade may be financed by the importer or by his bank either through the letter of credit or the authority to purchase. The general features of this instrument have been described in the FEDERAL RESERVE BULLETIN for August, 1921, pages 926932, and so only the characteristics peculiar to Japanese practice will be described. As explained above, the letter of credit has to some extent replaced the authority to purchase as an instrument for financing imports to Japan from the more advanced commercial nations, such as the United States, Great Britain, and Europe. However, the authority to purchase still remains an instrument of primary importance for facilitating Japanese commerce with other eastern countries, such as China, India, and the Philippine Islands. The authority to purchase or letter of instruction, as it is known in Japan, gives rise to a trade bill drawn by the exporter on the Japanese importer, and is purchased by a bank acting upon the instructions of the importer. The buyer and seller in the contract of sale determine the form of the authority which in most cases is revocable rather than irrevocable. Also the drafts are made with recourse on the drawer and so the authority to purchase is a less desirable instrument than the letter of credit from the standpoint of the exporter. Acting in accordance with the contract of sale the Japanese importer requests his bank to authorize the purchase of the exporter 's draft by an agent located near the latter. The application of the exporter to his bank may read as follows: DEAR SIR: In accordance with your application No. we shall have the pleasure of instructing our branch/agency to negotiate the drafts drawn by on your good/self/selves if offered before , 19 . We reserve to ourselves the option of cancelling at any time if deemed expedient in the interest of the parties concerned. Yours, faithfully. For the X Bank, of In issuing authorities to purchase the Japanese bank is careful to relieve itself of all the commercial risks attendant upon the shipping of goods in foreign trade, as indicated in the expressions found in the above forms. Responsibility is waived especially as to the genuineness of the merchandise and the validity of the underlying documents. It may also be observed that in its acknowledgement the bank reserves for itself the right to cancel the authority at will. IV. TRUST RECEIPT. In extending its credit on an export or import transaction a bank is usually covered by the merchandise which serves as collateral. However, at some stage in the movement of the goods to market, it is often necessary for the bank to surrender its control over the goods or documents and under these conditions it makes use of the trust receipt. (See FEDERAL RESERVE BULLETIN, January, 1922.) In Japanese practice this instrument is better known as a letter of guarantee, or, following British usage, as a letter of lien. The trust receipt may be used in connection with the No. financing of a foreign trade transaction either .19. by the importer or by the exporter. As menTo the X BANK. DEAR SIRS: I/we request you to forward instructions tioned above, the former's bank may extend by mail/cable to your branch/agency to purchase the credit cither through the authority to purdraft or drafts as follows: chase or the letter of credit. When goods Drawn by . imported under authority to purchase arrive Upon . in Japan the documents may be released to the Against shipment of . importer under a trust receipt which may read At usance of . To be drawn in (payable at the ba-nk:s drawing as follows: rate for demand drafts on ). Not later than . To the extent of accompanied by a full set of shipping documents, viz: Bills of lading, invoices, and policies of marine insurance relating to the above-mentioned merchandise ordered by me/us, it being understood that you will take the invoice as genuine and reliable evidence, To the MANAGER, THE X BANK, LTD. DEAR SIR: In consideration of your having this day delivered to me/us the following documents, viz: Bills of lading (marks and numbers of packages, etc., as on the back hereof) vhich you hold as collateral security for the due payment of the draft, , amounting to , drawn upon me/us by M. , of , and 300 FEDERAL RESERVE BULLETIN. accepted by mo/us, I/we hereby undertake to land and. store on your behalf the goods covered by the said bills of lading in godown on lot No'. . holding them strictly under lien to you, and keep them fully insured on your behalf against fire, to the extent of the acceptance, payable, in case of loss, to you with understanding that any expenses incurred on these goods shall be borne by me/us and not chargeable to you. I/we also hold myself/ourselves responsible for any damage or loss caused to the said goods and not covered by fire insurance policy, during the time so stored in my/our godown. I/we also engage to hand you the proceeds of portion of the goods on delivery before maturity of the bills, and also to return undelivered-goods to you, should you so desire at any time. MARCH, 1922. to your inspection at any time, either alone or jointly with other interested banks, until shipment when bills and shipping documents shall be completely delivered to you, in compliance with the terms of the above contract. I/we further guarantee that the goods held by me/us under the present agreement shall be fully insured against loss or damage by lire at ray/our expense until delivered to the steamship company. The amount insured'must be paid in case of fire direct to your bank. it is understood that interest shall be charged on the daily maximum balance of my/our overdraft at a rate to be notified by you from time to time. Letters of lien are employed by Japanese banks in surrendering shipping documents to importers so as to enable them to enter their goods at the customhouse, and later to store There is no need to reproduce the trust receipt issued in connection with a let-tor of credit, for them in warehouses or "godowns" as they are called in As mentioned in the the form is similar in content to those forms study on the Far East. American banks usutrust receipts, analyzed in the FEDERAL RESERVE BULLETIN ally insist place the merfor January, 1922. The burden of furnishing chandise in that the importer which he has no a warehouse over credit to a transaction in international com- control. However, Japanese merce may be carried by the exporter or by banks are not so in this respect customers particular, as his bank which permits him under Japanese are permitted to store goods in their own wareusage to make an overdraft on the bank —a houses, but the goods must be segregated and practice not general in the United States but available for inspection at any time by the common in Europe. It agrees to honor a deits agents. The Japanese mand draft which therefore becomes a check. bank or to protect its interests by bank eninsisting The bank is secured by the merchandise which deavors satisfactory insurance coverage. The upon a is kept in a godown. When the exporter is mainly as a ready to make shipment he is given the go- Japanese trust receipt serves store goods means of enabling the importer to godown receipt upon signing an agreement or downs, but is seldom used to permit him in sell to letter of lien which reads as follows: the goods. These are released for the purpose And in consideration of your allowing me/us to overdraw of sale only if the importer has a very good my/our account (export account) with you by my/our j credit standing, or if he is able to induce a seccheque or cheques, against the above contract, I/we hereby ond party, either a merchant or a banker, to agree that such cheque or cheques shall be drawn only for payment of: merchandise purchased by me/us for shipment act as his guarantor. Japanese banks seldom as well as for freight, insurance, and other shipping charges surrender goods to the importer on trust reon the said merchandise and that cheques shall be made ceipts for the purpose of manufacture. In genout only in favour of a party to whom actual cash payment is eral, the trust receipt although widely employed due. I/we also hereby agree to convey the ownership of the merchandise to your bank, keeping them in my/our in Japan does not rest on a very firm legal godo.wn separate and distinct from other goods and open basis. MARCH, 1922. FEDERAL RESERVE BULLETIN. 301 BUSINESS AND FINANCIAL CONDITIONS ABROAD. amounting to 500,000,000 gold marks, was due on January 15. Germany was unable to meet hi the BULLETIN' for November, 1921, an this payment and therefore on December 15 estimate was given of the reparation payments asked a delay in both the January and February made by Germany to the Allies under the terms payments. Her request was considered at the of the Treaty of Versailles between November conference at Cannes, but no decision was 11, 1918, arid October 31, 1921. Since that reached before M. Briand resigned as premier time there have been important developments of France. Just before the conference broke up, which will affect the future handling of the however, the Reparations Commission granted reparations problem. A summary of the pay- Germany a delay on the following conditions: ments which have been made up to November (1) That during the period of delay Germany 30, 1921, is therefore presented preliminary to pay in approved foreign securities 31,000,000 a discussion of recent developments. gold marks every 10 days, the first payment to PAYMENTS AND D E L I V E R I E S ON REPARATIONS BY G E R - be made on January 16. M A N Y — A R M I S T I C E - N O v . 30, 1921. . (2) That within a fortnight (i. o., by January [Millions of gold marks.] 27) Germany submit to the Reparations Commission a plan for reforms or appropriate guarMay 1 to antees for its budget and paper currency, and i Nov. 30, Period 1921 ' also a program for reparations payments in : to May L,! (under Tola.]. 1 cash and kind during 1922. \92O : schedule' ! ! ofpay(3) That the period of provisional delay end : ; merits). when the Reparations Commission or the Cash 1,178 Allied Governments reach a decision regarding 127 ! 1,051 ; Deliveries in kind and transfers of prop- I I the plan and program presented by the German 5,216 4,964 | 282 crty, etc j Government, the balance of the January 15 o,()91 ] 1,333 G, -12-J payment to become due two weeks thereafter. Total. 1 Five cash payments of 31,000,000 gold Estimates presented in the "November issue of the BULLETIN were approximately 500,0()0.()()0 gold marks lower than this estimate. marks were made between January 16 and gold marks, the Between November 30 and December 31, March 1, totaling 155,000,000 estimate of paysum referred to above in the 1921, payments on all accounts amounted to 64,000,000 gold marks, while between Janu- ments since January 1, 1922. was made after This ary 1 and March 1, 1922, payments in cash Premiertemporary arrangementwhen it was apBriand had resigned, amounted to 155,000,000 gold marks. No for payments during the figures are available showing payments in kind parent that the scheme been tentatively worked coming year which had since January 1, but they probably have not out by the Allies at Cannes would not be acexceeded a value of 100,000,000 gold marks. cepted in This makes an estimated total of 6,743,000,- reparations,France. The Cannestoscheme for as reported by cable New York, 000 gold marks paid to date on reparations. provided for an annual payment of 720,000,000 The schedule of payments agreed to in Lon- gold place don in May, 1921 (the so-called London agree- gold marks in cash (in for inof the 2,000,000,000 marks provided ment), provided for payment of 1,000,000,000 ment) and payments in kindthe London agreeto the gold marks on May 31, 1921, the other 1921 1,750,000,000 gold marks (in place amount of of the 26 payments to be made in goods. The cash pay- per cent export tax provided for in the London ment was met, as is apparent from the table agreement, which it has been estimated would above, although not completed until August 31. about 1,200,000,000 gold marks The amounts of the payments in goods were yield distribution of the payments in in 1922). The not specified, except that they were to equal 26 tween the Allies was to be as follows: kind beper cent of the value of the total export trade. The first payment in goods was due on or before cent November 15, 1921, and was equal to 26 per •• (Jold marks. • Pertotal. of , ! cent of the gold value of German exports in the three months ending July 31, 1921. On Feb- France •...! J, 125, 000,000 ! ! 64.0 j 240,000,000 14.0 ruary 15 payments equal to 26 per cent of the Italy Britain Great 100,000,000 6.0 value of trade in July, August, and September Belgium • 125,000,000 j 7.0 Japan ! 7,000.000 i .4 fell due. Thefirstpayment rwas met in full, but Other beneficiaries j 153,000,000 j 8.6 the payment due on Februarj 15, 1922, was not Total | 1,750,000,000 | 100.0 completed. The first cash payment in 1922, GERMAX .REPARATIONS. 302 FEDERAL RESERVE BULLETIN. Belgium was to be the main beneficiary of the 1922 cash payment of 720,000,000 gold marks. She was to receive the whole sum, except 159,000,000 gold marks which was to go to Great Britain. Of the latter sum Great Britain agreed to lend 139,000,000 gold marks to France, repayment to be made from funds to be obtained irom Germany at some later date. Cash payments after 1922, it was proposed, should be applied as interest on the 12,000,000,000 gold marks class " A " bonds, the issue of which was provided for in the London agreement. Interest at 6 per cent on these bonds (5 per cent to the investor and 1 per cent for a sinking fund) would require exactly 720,000,000 gold marks a year. Annual payments of 720,000,000 gold marks in cash and i,750,000,000 gold marks in goods (which were the sums reported as determined upon at Cannes by the Allies) were considered beyond Germany's ability to pay by representatives of the Wirth Government. The latter stated that, considered on an annual basis, the limit of Germany's ability was 500,000,000 gold marks in cash and 1,000,000,000 gold marks in goods. As is well known, there has been considerable controversy among the Allies as to the division of the reparations already obtained from Germany. This applies especially to the 1,000,000,000 gold marks paid by "Germany to the Reparations Commission between May 1 and September 1, 1921. At Cannes, France agreed (provisionally, of course) to renounce all ^claims to any part of this payment and it, was decided to divide this sum between Great Britain, Belgium, and Italy, Great Britain and Belgium to receive the larger shares. The British portion was to be used in payment of expenses already incurred by the army of occupation. In the case of Belgium the payment was to cover the sum promised her in priority of other claims at the time of the Spa agreement. The distribution of payments made prior to November 30, 1921, has been as follows: DISTRIBUTION OF REPARATIONS PAYMENTS BETWEEN THE ALLIES. [Millions of gold marks.] NOV. 11, 1918, TO MAY 1,1921. Deliy- State Cash. eriesin proper-. Total, kind. , ty, etc.' United States.. Great Britain.. France Belgium Italy Japan Other Powers.. Undistributed. Total. 127 58 303 976 571 ' , ; ! 1 402 8 ! 59 29 | 429 ! 2,042 127 2,460 I 2,504 58 431 1,378 571 86 67 29 2,471 5,091 MARCH, 1922. MAY 1 TO NOV. 30, 1921. i DeliyCash. eriesin Total. i kind. United States. Great Britain. France Belgium Italy Japan. Other Powers.. Undistributed. Total. 29 i i 923 : 39 144 964 46 3o j 6 99 1,051 10 144 41 46 : 35 10o 282 I 1,333 Grand total. 58 470 1,522 1,535 132 67 64 2,576 6,42 i 1 Out of the 923,000,000 gold marks in cash assigned to Belgium, 430,000,000 gold marks have been paid over to Great Britain on account of the British claim for cost of occupation up to May 1, .1921. This distribution is subject to ratification by France. The Wiesbaden agreement between France and Germany, which has been another source of difficulty among the Allies, was also under consideration at Cannes. If the Wiesbaden agreement had been carried out in all its provisions and the deliveries of goods to the amount of 7,000,000,000 gold marks for which it provides in the next 4^ years had been spread evenly over that period, Germany would have delivered to the Allies about 4,000,000,000 gold marks in gold and goods during the current year instead of the 2,000,000,000 marks in gold and approximately 1,200,000,000 gold marks in goods contemplated by the London agreement. The excess of about 800,000,000, gold marks would have consisted entirely of goods, to be ordered by the French " sinistres " and used for reconstruction purposes in the devastated regions. This excess would not have been credited on reparations account until after 1926, when deliveries under this agreement were to cease. Although it was recognized in October, 1921, when the Wiesbaden agreement was concluded, that an increase in payments in goods with a corresponding decrease in payments in cash would be desirable, it was felt that Germany would be unable to make the excess payments to France and at the same time meet her obligations to the other allies. Sir John Bradbury, the British delegate on the Reparations Commission, in reporting to his government on the subject, said: If there were reasonable grounds for anticipating that the obligations under the schedule of payments could be maintained, and would be discharged, in full, during the whole of the period contemplated by the Wiesbaden agreement, the excess deliveries to France being made in addition, it would be not unreasonable to allow to France the full advantage of the acceleration in the payment of her share of reparations for which she has been able to arrange. The obligations of the schedule of payments were, however, fixed as recently as May last and they then represented in the opinion of the Reparations Commission and of the allied Governments, the maximum burden which, in the light of the indications available, Germany could be expected to be able to bear. MARCH, 1922. Two weeks after the Cannes Conference, i. e., on January 27, the German Government replied to the demand of the Reparations Commission for a plan for the reform of German public finances and a program of reparations payments in 1922. Discussion of the financial reforms which were promised may be found on page 311. As regards 1922 reparations payments, the German Government urged that the cash payment be reduced from 720,000,000 gold marks and that this be compensated for, if necessary, by increases in payments in kind. It was also requested that the method of payment be changed from that prescribed under the London agreement to a monthly basis and that the cost of the armies of occupation payable in foreign currencies be included in these estimates. As regards payments in kind, the German Government requested that separate estimates be made for each country and that these be limited to goods to be used during the current year. On February 21 it was unofficial!}^ reported that France and Great Britain had agreed to leave the determination of reparations for 1922 "or longer" to the Reparations Commission. According to this report the commission "will have the power to lix, without consultation with the governments, whatever modifications it deems should be made of the schedule of payments laid down in London last May * * *. Further, it will have to fix the amount of reparations in kind which shall be made under the Wiesbaden agreement." It is definitely stated that the decision to leave reparations problems to the commission applies only to future payments, not to payments which have already been made, distribution of which apparently is to be otherwise negotiated. It is reported that a provisional agreement was made between Germany and representatives of the Reparations Commission on February 28, providing for the payment of 720,000,000 gold marks in cash and 1,450,000,000 gold marks in kind during 1922. These figures are radically lower than the payments specified in the London agreement last May, which were of course very much lower than the terms of the Paris ultimatum of January, 1921. The London agreement of May, 1921, provided for annual cash payments of 2,000,000,000 gold marks and payments in goods equal to 26 per cent of the export trade, or about 1,200,000,000 gold marks In the current year. The Wiesbaden agreement provided for additional goods payments to France to the extent of 800,000,000 gold marks annually. The new formula of payments is a confession that reparations can not be collected on such a 303 FEDERAL RESERVE BULLETIN. large scale as was planned at London and Wiesbaden. ENGLAND.1 RECEtPTS FROM REPARATIONS. Of the 1,000,000,000 gold marks which were paid to the Reparations Commission between May 1 and September 1, 1921, Great Britain made claims for 450,000,000 gold marks on account of the cost of her army of occupation. France tentatively agreed to the division of this 1,000,000,000 gold marks between Great Britain, Belgium, and Italy last August, when M. Doumer, Minister of Finance at that time, signed the so-called financial agreement of August 13, but the agreement was never approved by the Chamber of Deputies or the French press. At that time, however, approximately 450,000,000 gold marks were allocated to Great Britain for expenses connected with the army of occupation, and the rest was allotted to Belgium and Italy. The allocation in the case of Great Britain was made " subject to adjustment of the final settlement." Since this question was raised again at Cannes and no definite adjustment reached, the status of it now is apparently the same as at the time of the August agreement. In other words, Great Britain has the funds in prospect but can not meet current expenses with them. Excluding this sum of about 450,000,000 gold marks which is held in suspense, Great Britain had received the following sums in payment of reparations by November 30, 1921: Gold marks. Cash Deliveries in kind State property, etc .' Total 156, 000,000 313. 000,000 L 000,000 470, 000.000 The cost of the British army of occupation, however, between the armistice and April 30, 1921, amounted to £52,880,470; in other words, receipts on all accounts for a period of 36 months were several million pounds sterling less than the expenditures for occupation during 29 months. No estimates are available for the cost of occupation since April 30, 1921, nor for receipts from reparations since November 30. It is entirely possible, however, that receipts on all reparations accounts have not exceeded the cost of the army of occupation. GENOA CONFERENCE. These problems connected with reparations payments have an intimate relation to the 1 British price, trade, and financial statistics may be found on pp. 325, 330, 332, 375. 304 FEDERAL RESERVE BULLETIN. Genoa Conference. France has been determined that reparations should not be included in the agenda of the conference, while the British view has been that discussion of this question was a necessary preliminary to any proposals for the reconstruction of eastern Europe. Apparently French views have prevailed on this point, since the problem of future reparations payments has been definitely assigned to the Reparations Commission and to that extent removed from the political arena. The question of Great Britain's share in the distribution of the payments, however, may still be used as a political weapon in connection with the conference. She may consider it more to her advantage to obtain the general cooperation of Europe (including that of France) in the reconstruction of trade than to receive her full share of whatever reparations payments are made. Another financial consideration which may be an important factor in connection with the conference is the fact that France owes Great Britain large mms for expenditures during the war. Great Britain is not likely, however, to make any concessions regarding her share of reparations payments which have already been made; in other words, it is probable that she will receive her portion of'the 1,000,000,000 gold marks payment which was completed last August. The payment or nonpayment of this sum may in fact make it possible or impossible for her to balance her 1921-22 budget. According to reports to the end of January, public expenditures during the preceding 10 months had amounted to £846,000,000. Revenue collected during the same period totaled £784,000,000, leaving a deficit of £62,000,000 that, had been raised by borrowing. As total expenditures for the fiscal year had been estimated at £1,040,000,000 and receipts at £1,217,000,000, it is apparent that on both sides of the balance sheet the totals for eight months are appreciably less than was anticipated. This is due, in the main, to the decline in prices which has occurred during the year. GEDDES REPORT. Taxation has borne so heavily upon business interests in England during the depression that, especially since last summer, there have been uninterrupted and concerted protests against socalled Government extravagance. This agitation led to the appointment last summer of a committee of business men to investigate Government expenditures, with a view to the elimination of unnecessary expenses, waste, etc. The report of this committee, which was headed by Sir Eric Geddes, formerly director MARCH, 1922. of railways, has just been made public. It calls for economies which will bring about an estimated saving of £100,000,000 a year. It is recommended that the army be reduced by 50,000 officers and men, the navy by 35,000, and that the army, navy, and air forces be combined as a single ministry. It is stated that the naval estimates for next year could be reduced by £60,000,000 to £81,000,000, exclusive of savings as a result of the naval holiday, and that army estimates could be reduced by £20,000,000 and the cost of the air service by £5,000,000. Recommendations are also made for material reductions in- next year's estimates for education, the board of trade, and various other civil services. REDUCTION IX BANK OF ENGLAND DISCOUNT RATE. On February 16 the official rate of discount at the Bank of England was reduced from 5 per cent to 4-J- per cent. This compares with a 4 per cent rate at the Federal Reserve Bank of New York and with a 2J per cent rate for 3 months' treasury bills in London. Money on deposit in London banks receives 2\ per cent interest. The following table shows rates on different kinds of paper at the end of each month since last July: RATES OF INTEREST. I 1921. End of— July August September October November December Three ; Three | Three Bank of ; months' ! months' months' trade England, treasury j bank bills. . bills. • bills. Per cent. Per cent. Per cent. Per cent. £ ,'ijj 4:i 1922. January February The lowering of the bank rate brings it more into touch with outside market rates than has been the case since last spring. However, it is unlikely, in view of recent bank policy, that the change would have been made if there had not been an improvement in public finances. Conditions have been improving, however, with the increase in revenue normal at this time of year, and outstanding Treasury bills have been appreciably reduced. At the same time there has been a steady advance in the value of sterling in terms of dollars, which brought the quotation at the end of February to $4.42, as compared with an average of $3.97 in November and $3.68 last August. This rapid 305 l^EDE tAL RESERVE BULLETIN. MARCH, 1922. advance in exchange rates is due in part to the trade situation and in part to other factors operative in the market. On the visible items alone there is a far closer balance between imports and exports than has existed at any time since the war. In 1919 the monthly average value of imports was £136,000,000; of exports and reexports, £80,000,000. In 1920 imports had increased to a monthly average of £161,000,000, but exports had advanced also to a point where they were only £30,000,000 lower. In the last six months of 1921 imports averaged £86,000,000 and exports and reexports £65,000,000, a difference of only £21,000,000 a month, or, on an annual basis, £252,000,000. In spite of the shrinkage in freight earnings, etc., this sum is probably covered by such invisible items as shipping services, interest on investments, etc. The shift in the trade balance is in part due to the fact that prices of commodities in England have been definitely on the decline during recent months in contrast to the relative stability of the price level in the United States and many other countries. This fact has encouraged purchases in England by foreigners and vice versa has discouraged imports into England from abroad. WAGE REDUCTIONS DURING 1921. The January number of the Labour Gazette, the official publication of the British Ministry of Labor, contains a summary of the reductions that were made in 192.1 in the full-time rates of wages of workers in leading British industries. These are tabulated below: Skilled workers in the building trades.1 Laborers in the building trades Hewers in coal mining industry (according to districts) Underground laborers, mining industry (according to districts) , Workers in blast furnaces Processmen in iron and steel manufacture Laborers in iron and steel manufacture Skilled workers in engineering and shipbuilding (time work) Laborers in engineering and shipbuilding Cotton operatives Wood textile operatives Workers in textile bleaching, dyeing, printing, and finishing trades Engine drivers in transport trades Porters Dock laborers Seamen Hand compositors in printing and bookbinding trades Bookbinders Cabinet makers, upholsterers, etc Pottery workers Heavy chemical workers Per cent. 12-16 19-23 20-50 30-60 33-46 33-45 30-45 17-18 20 22 27-29 19-21 11-14 17-18 1 12-13 10-14 5- 6 7J- 9 12 -13 10 19 -21 The Ministry of Labor estimates that 20 per cent may be taken as the average reduction in rates of wages during the year. In certain industries, such as boot making, no reductions were experienced, while in others, notably the coal industry, very severe reductions were made. Earnings, however, were probably much more than 20 per cent less in 1921 than in 1920, as there has never been a period of such serious unemployment as the past year. The following table shows the percentage of the 12,000,000 people insured under the unemployment insurance act who were out of work or working short time at the end of each month in 1921: UNEMPLOYMENT IN INSURED TRADES. Unom- End of— January.-. February.. . March. April May June.. . Julv Aucust .. September... October November. December 92371—22 4 1921. Per cent. 8 10 H Per cent. ^ 16 10 16 16 2 3 18 19 Jo U3 U2 15 6 7 11 8 4 3 3 2 1 Thisfigureis affected by the unavoidable exclusion of those unemploj-od insured persons who had removed their insurance books from the employment exchange after the exhaustion of their right to benefit. FRANCE.1 „ THE RECOVERABLE BUDGET. The amount to be spent by France during the current year for the reconstruction of the devastated regions, for pensions, and for the interest on loans previously floated for reconstruction purposes has not yet been finally determined. Recent cable dispatches state that the Chamber of Deputies has voted to spend 13,500,000,000 francs for these purposes, and that this sum will be met, as far as it is not covered by payments from Germany, by the sale of treasury bonds and of bonds of the Credit National and of the "Sinistres." The Senate has not yet given its approval of this figure, however. To what extent France can depend upon receipts from Germany during the current year for the payment of pensions and the expenses of reconstruction can not be stated at the present time. On the basis of the figures reported as adopted by the Allies at Cannes, France would receive during 1922 goods to the amount 1 i Further reduction already scheduled. On short time. French price, trade, and financial statistics may be found on pp. 331, 333, 376. 225 >5, 306 FEDERAL RESERVE BULLETIN. of 1,125,000,000 gold marks, and gold to the amount of 139,000,000 gold marks to be loaned to her by England. These two sums would be equivalent to about 1,555,000,000 gold francs. What that amount would yield in paper francs will depend upon the course of the French price level during the current year. Upon the basis of the French wholesale price index in January, 1922, it would yield about 4,665,000,000 paper francs, but upon the basis of current exchange rates on the United States it would yield only about 8,110,000,000 paper francs. In either case it is evident that the sum of 1,555,000,000 gold francs would not go very far toward meeting the expenditures for reconstruction and pensions proposed for the current year. The deficit which already exists in the French account as " recoverable from Germany/' therefore, continues to increase. In the course of the debate on the ordinary budget last December it was stated that France had already spent 69,000,000,000 francs on reconstruction. During the debate on the "recoverable budget'7 this figure was explained and enlarged. According to the later report, France has spent in repairing material damages 45,000,000,000 francs, in repairing damages done to persons 29,000,000,000 francs, and in interest on sums borrowed to meet expenditures recoverable from Germany under the peace treaty 6,000,000,000 francs, or 80,000,000,000 francs in all. Meanwhile the Credit National is issuing another loan for the benefit of the devastated regions. It is dated February 1 and will bear interest at 6 per cent on the face value of the bonds. The 500-franc bonds will be marketed at 482, and will bear 6 per cent interest on their face value. They will be repaid at three different prices, the price varying with the date of maturity. The 2-year bonds will be redeemed at par, the 5-year bonds at 507.50 francs, and the 10-year bonds at 525 francs. This new system is based upon the public preference for short-term securities. Up to the present time the loans floated by the Credit National have yielded about 10,675,000,000 francs—3,910,000,000 in 1919, 3,825,000,000 in 1920, and 2,941,000,000 in 1921. INTEREST RATE OX THE NATIONAL DEFENSE BILLS. In the Journal Officiel of February 26 there appeared a ministerial decree reducing the interest rate on national defense bills and treasury bills one-half of 1 per cent as of March 12. This action on the part of the Government will reduce the rate on 1-year bills from 5 to 4£ per cent, on 6 months' bills from 4J to 4 per cent, on 3months' bills from 4 to 3£ per cent. The re- MARCH, 1922. duction has been actively urged by the French public for some weeks past, partly because it was contended that the high rate of interest was unduly increasing the expenses of the Government and partly because of the difficulty being experienced by French capitalists in raising funds for industrial purposes. . Figures recently made public on the amount of money invested in securities in France during the last year confirm the statement that funds have been diverted from industrial to Government investments during the past year. This is undoubtedly due in part to the uncertainty in regard to the return on industrial stocks as well as to the high rate of interest on Government securities. The following table sets forth the issues of securities in France during 1921 as compiled by the Association Nationale des Porteurs fran^ais de valeurs mobiiieres: SECUJUTIES PLACED ON THE F R E N C H M A R K E T IN 1921. [Estimates of the Association nationale des Porteurs frangais de valours mobiiieres, in millions of francs.] Securities of the Federal Government, of departments and cities 6, G40 Bonds of various sorts 4,173 Capital shares 2,359 Railroad bonds National defense bills and bonds l Total 13,171 3,100 22, 700 38,871 The average rate of interest on the bonds and bills offered to the public varied from 6.60 to 6.85 per cent. ^ TAX RECEIPTS IN 1921. According to the preliminary figures recently issued, French tax receipts in 1921 did not go as far toward improving the financial situation of the Government as it had been hoped that they would. Receipts from indirect taxes and Government monopolies show a deficit of over l,000,00(),000 francs for the year. This deficit in indirect taxes is largely accounted for by the disappointing yield of customs duties and of the tax on total business turnover. Receipts from the income taxes brought in only about one-third of the revenue expected from them, and of 10,325,000,000 francs due on the war profits tax this year only 7,578,000,000 francs were received. In connection with the last-named tax it is interesting to note, however, that the return is actually larger than that expected by the Government, although it is smaller than the amount owing. Last July, in his report to the Senate on the budget for 1 Excluding renewals and reimbursements, but including the 2-year bonds issued in June. MARCH, FEDERAL RESERVE BULLETIN. 1922. 307 1922, M. Doumer, then Finance Minister, stated: "As for exceptional resources, the yield in 1922 for the extraordinary tax on war profits is estimated at 2,550,000,000 francs as against 4,000,000,000 francs in 1921." The relatively small yield of the tax on total business turnover and on incomes is undoubtedly due in part to the business depression which has prevailed in France this year, but it is attributed by the French press in part to the unpopularity of those taxes and the inefficiency of the Finance Ministry in collecting them. M. de Lasteyrie, the new Finance Minister under Premier Poincare, is said to have remarked, some time before he assumed office: "In France he pays taxes who wishes to do so/ 7 It is more satisfactory to deal jvith the figures on French trade which are expressed in volume than to use the figures in value, because of the French system of using official valuations in compiling foreign trade statistics. The total value of the trade is computed by assigning a fixed, value to each commodity instead of using the values declared by the importers and exporters as is customary in this country and in Great Britain. As a rule the trade for a given year is valued in the units of the year previous, and later revalued according to the prices prevailing in the year to which the figures apply. In 1921, however, 1919 values have been used since the 1920 values were too high to be applicable to the trade of 1921. FRENCH FOREIGN TRADE IN 192 L. FRENCH WHOLESALE PRICES. The decline in French imports which took place during 1921 has been frequently attributed to the lack of industrial activity in France during the year. It should be pointed out, however, that the total weight of French imports was only slightly smaller during 1921 than during the five years before the war. During the present year the greatest decline has taken place in imports of raw materials, which declined from 41,872,000 tons in 1920 to 32,448,000 tons in 1921, as compared with an average of 32,855,000 tons in the nva years before the war. As regards exports, the volume of exports in 1921 is actually larger than the volume of exports in 1920, although the value assigned them is less than in the year previous. The total weight of 1921 exports is 16,000,000 metric tons, as compared with 12,855,000 metric tons in 1920 and an average of 17,800,000 metric tons in the five years ending in 1913. The low point in the volume of French exports in 1921 occurred in August, and in the last four months of the year a distinct improvement took place. Tho following table gives the volume of French trade in 1921 as compared with the trade in 1920: The index number of the French General Statistical Bureau seems to bear out the decision of the customs officials in valuing French trade in 1921 at 1919 prices, as the average index for year 1921 is 345 as compared with an average of 357 in 1919. There were three different movements in French wholesale prices in 1921. Prices fell until June, rose in July, August, and September, and have fallen since that time. The rise in the summer was small as compared with the level at the first of the year, and the February, 1922, index shows a further decline. FRENCH FOREIGN TRADE. [In thousands of metric tons.l 1920 1921 IMPORTS. Food Raw materials Manufactured articles Total 6.19o 41 872 2,465 4,066 32 449 1.459 50,532 37,974 1 258 9 709 1,865 1 227 12 S58 1,891 12,855 16,001 EXPORTS. Food Raw materials Manufactured articles Parcels post Total 23 25 COST OF LIVING IN FRANCE. In connection with the trend of wholesale prices in France during the past year, it is interesting to review the figures on tne cost of living which have been assembled by the central commission for studies relating to the cost of living. This commission was created by a decree of February 19, 1920, at a time when both living costs and wholesale prices were still rising rapidly. The central commission has assembled the work of 20 regional, 26 departmental, and several local commissions. The figures collected show in most cases the relation between the cost of living in various French cities in 1920 and 1921 with living costs in 1913, although in the case of the reports from Nancy, Limoges, and Quimper, costs in the year 1919 are used as a base. The figures show that the peak of living costs was reached in the summer and fall of 1920. From November and December of that year until the spring of 1921 the decline was general. Figures for the third quarter of 1921 indicate an increase in costs in several regions, although the general trend was still downward at that time. The most important increases occurred in Clermont-Ferrand (a city in the south-central coal district of France), where the 308 FEDERAL RESERVE BULLETIN. index rose from 286 in June to 319 in September, 1921; in Lyon, where the index increased from 247 on August 1 to 251 on October 1; in St. Etienne, where living costs rose from 325 in June to 350 in October; and in Marseille, where an increase from 310 in July to 322 in October was registered. All the cities mentioned use 1914 as 100 in computing their indexes. It will be observed from the figures cited that there is very little uniformity observed in the dates for which the regional indexes are compiled. It is possible, however, to compare the different indexes in general. The highest total figure reported is for lievin, a city in the northeast of France, where the total index rose to 472 on October 1, 1920. Indexes of over 400 as compared with 100 in 1914 were common in 1920, however. They occurred in 16 out of the 37 cases where figures for 1920 are presented. In the 21 cases remaining the peak figures for 1920 vary from 300 to 400. In most cities the index for rent is lower than the other group indexes because of Government regulation of rents. In some cities, however, there is no indication of such regulation. In Arras the rent index stood at 350 in 1920, in Mines de Brassac it stood at 300 in that year, while in ClermontFerrand in January and June, 1921, it registered 464, rising to 500 in September. The following table gives the indexes compiled for Paris: COST OF LIVING INDEX FOR A PARIS WORKING MAN'S FAMILY OF FOUR PERSONS. [Expenses in 1914=100.] Date. Heat and light. Food. ! 1919, first half 1920: First quarter Second quarter.. Third quarter... Fourth quarter . 1921: First quarter Second quarter.. Third quarter... Fourth quarter. Rent, j 260 164 I 306 344 358 389 350 323 310 310 200 296 349 349 319 ' 308 307 307 100 100 100 100 100 110 121 133 ITALY.1 REPARATIONS. Italy's reparation claims were defined as follows in the statement of the Reparations Commission of February 12, 1921: Reparations of damages to property and other compensation of civilians and returned war prisoners lire. - 33, 086, 836, 000 Pensions and separation allowances.franc. 37, 926,130,395 Shipping losses £128, 000, 000 1 Italian price, trade, and financial statistics may be found on p. 325, 330, 331, 376. MARCH, 102:2. At no time, however, did the Governments that have succeeded one another in Italy since the armistice entertain or encourage any expectation of considerable revenues from reparations payments or attempt to base their financial policies upon such revenues. At the Spa Conference, Italy's share of German reparations was fixed at 10 per cent. At the same time she was allowed 25 per cent of the eventual reparations payments of Austria, .Hungary, and Bulgaria. The Paris InterAllied Conference of last August fixed the reparations due from Austria and Hungary at a minimum of 6,000,000,000 gold marks, and those due from Bulgaria at a minimum of 2,250,000,000 gold francs. The Paris Conference also adopted the principle that the settlement of Italy's claims should not be delayed until the time when the economic rehabilitation of Austria, Hungary, and Bulgaria made payment on their part possible. It was accordingly decided that the reparations due from these countries should be advanced by Germany as part of her total reparations liability of 132,000,000,000 gold marks, in the shape of group C bonds. This decision was confirmed at the Cannes Conference last January, following its ratification by France. Italy's share of German reparations in kind to be paid during the year 1922 was tentatively fixed by the Cannes Conference at 240,000,000 gold marks. Furthermore, the Cannes Conference granted to Italy the following advantages : (1) The value of reparations in kind delivered to Italy up to December 31, 1921, shall be charged to the account of reparations payments due to Italy in 1923 and subsequent years, instead of being remitted to Belgium by right of priority. (2) The amount of 175,000,000 paper lire, (or 31,000,000 gold marks) of the first billion gold marks paid by Germany, which was deposited at the Banca d'ltalia to be later remitted to the Allies under their priority rights, shall be definitely allocated to Italy. The last-named amount, payment of which has not been ratified by France, seems to be the only cash payment thus far received by Italy on reparations account. By June 30, 1921, the following deliveries in kind were effected by Germany: In 1919, 33,140 tons of coal. In 1920, 987,000 tons of coal; 3,728 quintals of aniline dyes; 2,569 quintals of other dyeing and tanning materials. January-June, 1921, 1,089,755 tons of coal; 11,293 quintals of aniline dyes; 4,947 quintals of other dyeing and tanning materials. MARCH, 1922. PRICE MOVEMENT IN ITALY. The upward movement of wholesale price: of commodities, which began last Jul}r, continued until October. In that month the Bachi index number for all commodities wai nearly 18 per cent above that of June, 1921 whicli was the lowest of the year. While the index numbers for the several groups of commodities have fluctuated up and down since last October, the general index number has been practically stationary, with a tendency to decrease. At the end of December, 1921, it stood at 95 (the average monthly prices in 1920 being taken as 100), which was more than 11 per cent below the index for November, 1920, when the highest level of prices since the armistice was reached. In December, 1921, prices of vegetable foods and of sundry vegetable products and those of animal foods were higher than the average monthly prices of 1920. Prices of all other groups of commodities were lower than the 1920 average. Retail prices of food, as shown by the index numbers of the Italian Ministry of Labor, reached their highest level in April, 1921, the index number for that month being 564-, with the average monthly prices of 1913 taken as a basis of 100. Prices decreased in the following three months, the index for July being 501, but a new increase began in August, and in September the price level was higher than at the beginning of the year. The monthly index numbers of retail prices of food in 1920 and in the first nine months of 1921 are shown in the following table: MONTHLY I N D E X NUMBERS OF RETAIL P R I C E S OF F O O D . [Monthly average in 1913=100.| 1920 January February March April May June July August September October November December • j i I j i ! ; I i | 384 393 401 416 435 445 452 464 ISO 507 533 543 i 1921 542 540 556 564 544 509 501 534 542 The movement of stock prices in 1921 nearly paralleled that of commodity prices. The following table, showing the index numbers computed by Prof. Bachi for the monthly settlement quotations of dividend-bearing shares of 125 corporations, with an aggregate capital of 6,382,000,000 lire at the end of 1920, contains the end-of-month figures for 1921. Quotations on December 31, 1920, are considered as 100: 309 FEDERAL RESERVE BULLETIN. 1921, end of— January February March. .* April May June July August September October • November December 94. 23 98. 43 91. 82 90. 51 85. 84 80. 76 78.71 82. 87 87.04 91. 07 83. 99 80.13 The downward movement of stock prices between February and July was succeeded in the following three months by an advance in quotations; the index for October being 12 points above that for July. The November and December index numbers show a new sharp decline. The effect of the industrial depression is seen in the fact that the index at the end of 1920 was higher than that of any month in 1921. If prices on December 31, 1918, are taken as 100, the highest monthly index number in 1921 is 78.42, and the lowest 62.71, as compared with 106.42 and 73.24, respectively, in 1920. The variation of foreign exchange rates has been probably the most important single factor affecting the general stock market situation. The advance of quotations from August to October, in particular, is largely accounted for by speculative buying at the time of the fall in the value of the lira. Another factor that affected the market as a whole was the changing outlook in regard to the enforcement of the law of September. 1920, regarding the compulsory registration of bearer securities. The ecree making that law effective as regards securities of private corporations was published in June. This fact accounts to a great extent for the low quotations at the end of June and July. The suspension of that decree in Aiigust was immediately reflected on the financial markets, especially as it gave grounds for the belief that a repeal or a general revision of the compulsory registration law was impending. The following table shows the Bachi monthly index numbers of the quotations of some of the most important groups of shares at the end of each month from June to November, 1921, their respective quotations on December 31. 1920, being taken as a basis of 100: i June. S July. Banks j Merchant marine Cotton i Wool i -inen and hemp I Silk ; '• Mining • ; Iron and steel Machine i n d u s t r y . . . ; Automobiles • Electric t r a d e s . . . . . . : Chemicals : 90.98 60.03 68.21 96.08 54.24 59.56 60.87 48.73 98.43 64.02 96.29 75.58 91.04 58.48 76.70 94.87 62.71 66.47 61.33 47.91 80.00 61.82 96.48 72.77 Aug. j Sept. j Oct. Nov. 92.65 53.91 87.60 103.00 79.66 78.77 71.85 53.50 85.72 64.02 99.12 73.32 94.73 98.09 67.89 67.30 96.64 99.54 i 106.29 115.68 89.80 96.20 ! 89.68 92.92 j 80.27 82.76 i 52.30 50.78 I 95.84 107.05 ! 65.06 77.28 :101.65 103.18 ! 74.79 80.26 94.73 65.29 93.92 115.45 100.00 88.67 73.11 39.10 77.53 78.10 98.43 74.26 310 FEDERAL RESERVE BULLETIN. These figures show, among other things, that the shares of the several textile groups stood higher at the end of November than during the summer months, thus reflecting the recovery of those industries. The same is true to a certain extent as regards the automobile industry. On the other hand, the shares of the iron and steel industry and those of the machine industry fell at the end of November to ^ the lowest level since the armistice, the November index numbers being 18.55 and 42.73, respectively, if quotations on December 31, 1918, are taken as a basis of 100. This is explained by the critical situation of the Ansaldo group and by the failure to agree upon a settlement of the liabilities of the Ilva Society. MARCH, 1922. (45 per cent in the original proposal) be refunded to the creditors in cash within a year, while another portion (originally set at 5 per cent) is to be remitted to them in the form of stock of the new credit institution and the remainder in registered bonds gradually redeemable as the realization of the assets of the Banca di Sconto proceeds. Discussions which are now under way between the receivers and the Government on the one hand and the representatives of the bank's creditors on the other relate chieffy to the amount to be refunded in cash to the latter. Another important question under discussion is whether the assets and liabilities of the old bank and its liquidation shall be taken over by the new institution or whether the liquidation shall be carried on THE BANCA DI SCONTO CRISIS. under the auspices of a separate body especially created for this purpose. Finally, it remains Trading on the stock exchange has been to be decided whether and to what extent cash inactive since the end of December, when a pa}7ments to creditors shall be guaranteed by government decree limited transactions to cash the banks of issue. operations, in order to prevent speculation on the fall of Banca di Sconto shares. The crisis BANKING SITUATION IN 1921. of the Banca di Sconto also caused the postponement of the December monthly stock The principal assets and liabilities of the exchange settlement until January 4. A large four leading private banks (Banca Commcrnumber of shares of the bank, estimated at ciale Italiana, Banca Italiana di Sconto, Credito 60,000, had been sold for the December and Italiano, and Banco di Roma) on October 31, January settlements, the sales having been ef- 1921, as compared with December 31, 1920, fected at or near par (500 lire). The principal are shown, in millions of lire, in the following buyer was the Banca di Sconto, acting through table: a subsidiary company, the Banca Italo Caucasica, as under the Italian law a corporation Dec. 31, Oct. 31, is not permitted to deal on the exchange in its 1920. 1921. own securities. The commission of receivers of the Banca di Sconto appointed by the court Discounts ' : 9,034 9,87(5 1,287 Loans ! 1,504 under the moratorium decree refused the bank Due from correspondents 5,822 j 5,950 3,527 ! 3,229 permission to continue the payments required Deposits 13,495 Due to correspondents • 12,581 lor these operations. A consortium of stock exchange brokers was formed, which succeeded, after many difficulties, in completing the DeDeposits and correspondents' credit balances cember settlement on January 11. The trans- combined increased in all banks, with the exactions in Banca di Sconto shares for the De- ception of the Banca di Sconto, which showed, cember settlement were settled with the sellers, on the contrary, for the two items combined, who assumed a part of the loss, and transactions a decrease of over 11 per cent (from 4,509,for the January settlement were canceled. 000,000 lire to 3,956,000,000 lire). This clearly While the value of the assets of the Banca indicates a curtailment of the activities of the di Sconto has not been definitely ascertained Banca di Sconto since the beginning of the as yet, the deficit, after allowing for deprecia- year. Outstanding loans of the four banks tion, has been estimated at 1,265,000,000 lire combined decreased nearly 18 per cent. This in a preliminary statement of the receivers. decrease, which occurred in all banks except It has also been estimated that not more than the Banco di Roma, reflects the curtailment 1,500,000,000 lire of its assets are realizable of stock exchange transactions. An effect of within one year. Its liabilities, on the other the business depression may also be seen in the hand, are in excess of 4,000,000,000 lire. decrease in balances due from correspondents, Accordingly, the several tentative plans for the which likewise applied to all banks, with the liquidation of the old bank and the creation of exception of the Banco di Roma. Discounted a new credit institution in its place, which have bills held by the Banca di Sconto decreased been submitted by the receivers, provide that from 2,456,000,000 lire to 1,970,000,000 lire, or only a certain portion of the bank's liabilities nearly 20 per cent, The coinbixied. discounts MARCH, 1922. of the three other banks increased more than 20 per cent. In this connection it should be observed that discounts, as indicated in the bank statements, include Treasury bills held by the several banks. Short-terra Treasury bills in circulation increased between December 31, 1920, and October 31, 1921, from 12,545,000,000 lire to 22,997,000,000 lire, or over 10,000,000,000 lire. It is true that these bills, which are issued in small denominations and are specifically exempted from compulsory registration, are a preferred form of investment, even by small investors, and circulate widely. There is no doubt, however, that a large proportion of the issues was taken by the leading banks. The increase of 1,328,000,000 lire in the portfolios of the three banks does not therefore necessarily mean a considerable expansion of purely commercial credit, but may, on the contrary, coincide with an actual contraction in the amount of commercial bills discounted. Domestic bills discounted by the three banks of issue likewise include, in addition to commercial bills, rcdiscounted Treasury bills and also bills directly purchased by the banks of issue. The aggregate amount of discounts at the three banks of issue remained practically stationary during the period under consideration (4,256,000,000 lire on December 31, 1920, and 4,226,000,000 lire on October 31, 1921). The official discount rate has been maintained at 6 per cent since May, 1920. Outstanding loans of the banks of issue increased from 2,818,000,000 lire to 3,590,000,000 lire, or 25 per cent. Deposits and demand liabilities decreased from 2,563,000,000 lire to 2,243,000,000 lire. Bank-note circulation on December 31, 1921, amounted to 18,800,000,000 lire, as compared with 19,700,000,000 lire on December 31, 1920, a decrease of 900,000,000 lire, or about 4.5 per cent. This decrease was due to the redemption of notes advanced to the Treasury. The note circulation on that account, which amounted to 10,743,000,000 lire at the end of 1920, decreased steadily in 1921 until August, and, in spite of a slight increase in subsequent months, amounted to only about 8,500,000,000 Lire on December 31. Commercial circulation, on the contrary, increased from about 9,000,000,000 lire" on December 31, 1920, to about 9,800,000,000 lire at the end of September, 1921, and rapidly decreased in the following months, so that on December 20 it was practically the same as at the beginning of the year. After that date, however, the crisis of the Banca di Sconto led to a new expansion, and on December 31, 1921, the commercial circulation of the three banks of issue amounted 311 FEDERAL RESERVE BULLETIN. to 10,300,000,000 lire, or 14 per cent more than that at the end of 1920. A comparison of the statements of the Banca d'ltalia of December 20 and December 31, 1921, shows the effect upon the general banking situation of the crisis caused by the collapse of the Banca di Sconto. During those 10 days the note circulation of that bank increased by 1,574,000,000 lire, 1,539,000,000 lire for the amount being due to an expansion of commercial circulation. Discounts increased 538,000,000 lire, loans 1,698,000,000 lire, and demand liabilities (drafts payable at sight) 735,000,000 lire, while deposits decreased 174,000,000 lire. A decree was issued on November 12, 1921, designed to facilitate the expansion of banknote circulation for the needs of trade. Under the terms of the general banking law, the commercial circulation in excess of a certain amount (fixed during the war at 1,320,000,000 lire for the Banca dltalia, 400,000,000 lire for the Banco di Napoli, and 96,000,000 lire for the Banco di Sicilia) is subject to a tax ranging from one-fourth of the official discount rate to the full amount of that rate. The new decree provides that one-third of the amount of this tax collected during the period from July 1, 1921, to December 31, 1923, shall be converted into short-term Treasury bills and shall constitute a special fund. If at the end of that period the average annual profits of any of the banks of issue for the three years 1921 to 1923 shall appear to be below 5 per cent of its capital, the difference shall be paid to such banks from the fund thus formed, the balance of the fund being definitely remitted to the Treasury. GERMANY. THE GERMAN NOTE TO THE COMMISSION. REPARATIONS The note addressed to the Reparations Commission by the German Chancellor on January 27 is of such importance that it seems worth while to summarize it briefly, as follows: The German Government is resolved to complete the reform of its finances and to balance its budget during the current year. A bill at present before the Reichstag proposes new taxes on wealth, on increases in wealth, on transfers of capital and on corporations, a tax of 2 per cent on total business turnover, and increases in the coal tax, in customs duties, and in certain consumption taxes. Government receipts for the fiscal year will be considerably increased by these measures and at the same time Government expenditures are to be greatly reduced. Subsidies to reduce the cost of living, which last year caused the expenditure by the State of 22,500.000,000 paper marks, are to be curtailed so that they will require only 1,000,000,000 paper marks during 1922, unless there is a new depreciation of the mark. Reforms proposed for the railway and postal services will make it possible, beginning 312 FEDERAL RESERVE BULLETIN. April 1, 1922, to balance ordinary expenses by ordinary receipts. Their extraordinary expenses will be met by loans. The Government's ordinary budget for 1922 will balance and leave a surplus of 16,500,000,000 paper marks to be used to cover expenses accruing under the Peace Treaty. Against ordinary expenditures of 86,700,000,000 marks there will be 103,200,000,000 marks from ordinary receipts. During the course of the year 1922 the German Government will endeavor to float an internal loan. It will be possible to do so successfully, however, only after confidence is reestablished in the economic and financial reconstruction of Germany, and people are convinced that the provisions of the treaty of Versailles will not affect the payment of interest on a consolidated Federal loan. Quite apart from the voluntary loan, the German Government will issue a forced loan, the proceeds of which will be used to check the increase of the floating debt. The German Government is resolved to resort to this extreme measure, a measure which could not be repeated, for the purpose of financing reparation payments at least for 1922, as far as possible without printing notes. The Government has submitted for the approval of the Reichstag the draft of a law which will have the effect of withdrawing the privilege which the Chancellor at present legally enjoys of interfering in the affairs of the Reichsbank. This law will have the effect of establishing the autonomy of the Reichsbank. As regards a program for reparations payments in 1922, the Chancellor admits that the proposed increases in receipts and reductions in expenditures will not provide for a satisfactory financing of reparations payments during the current year. Only "fiduciary money is received by the treasury, and it is impossible to affect the payments in gold mar'-rs on reparations account by means of it, given the present depreciation of the mark. This depreciation has been caused, despite the greatest eSorts on the part of the German Government, by the impossibility of affecting the total reparations payments in the time given. The principal factors which make it impossible are as follows: With the exception of coal, Germany possesses few raw materials. There has been a sensible decline in general production, especially in agricultural production. Necessary imports of raw materials and of foods amount to 5,000,000^,000 marks a year. The total value of German exports, which in 1913 amounted to about 10,000,000,000 gold marks, has fallen to 4,000,000,000 gold marks. Taking into account the universal rise in prices all over the world, this is equivalent to saying that German exports at present only represents a quarter of exports before the war. The unfavorable balance in German foreign trade now amounts to about 2,000,000,000 gold marks. In these circumstances every large payment in foreign bills brings about a new depression of the mark quotation and at the same time results in a depreciation of all internal receipts, increases all expenses, adds to inflation, and weakens more and more Germany's ability to make reparations payments. Viewing the reparations problem from the economic angle one is obliged to see that Germany ought to be relieved for a relatively long period, at least for the entire year 1922, from the necessity of making any payments in cash. The German Government at the same time does not refuse to recognize that given the actual state of affairs, it is necessary, for political reasons, to ignore important considerations affecting the economic and fiscal situation in Germany. The German Government is not unaware of the fact that on the side of the Allies the following figures were considered at Cannes for German payments for reparations pusposes in the course of the year 1922: 720,000,000 gold marks to be paid in cash; 1,450,000,000 gold marks to be paid in kind. The German Government estimates that even after the reform of its internal finances it could procure funds to meet such payments only by increasing the floating debt, and it therefore is forced to request the MARCH, 1922. Allies to fix a much lower figure as regards the payments in cash required from Germany, and, if need be, in return to increase the volume of payments in kind". In whatever way the reparations payments for the year 1922 are fixed, the German Government proposes the following program for their execution: (a) That payments in specie as well as payments In kind already made or ta be made on the installments due January 15 and February 15, 1922, should be deducted from the sums fixed. That payments in specie yet to be made should be divided evenly between the months of 1922. (b) That expenses necessary for the armies of occupation payable in foreign money shall be deducted from the total of the payments for the year 1922. The contribution to th e expenses of the army of occupation to be paid in paper marks should be sensibly reduced. (c) That the other financial obligations covered by the peace treaty which have to be met by payments of foreign money, particularly the charges resulting from the operations of verification and clearing should be reduced by special agreements so as to be bearable. As regards payments in kind, Germany renews the expression of her eagerness to cooperate with all her ability and to serve in every possible way the work of reconstructing the devastated regions. The program outlined in the Chancellor's note has not yet been enacted by the Reichstag, partly because of political difficulties which arose in connection with the strike of the German railway employees. A more fundamental cause for the delay is the difficulty in deciding upon a basis on which the forced loan is to be levied. Certain parties in the Reichstag wish to use the assessments of 1919 which were made in connection with the Erzberger tax plan. Others object on the ground that the inflation which has taken place in the last two years renders these figures invalid for taxation purposes. It is generally recognized, however, that a delay long enough for a new assessment to be made would be undesirable. THE 1922 BUDGET. On January 30 the Finance Minister presented to the" Reichstag a draft of the budget for the fiscal year 1922, an outline of which had already been sent to the Reparations Commission. The chief items in the new budget are as follows: 1)IIAFT OF THE GERMAN BUDGET FOR 1922. [In marks.] I. General expenses: (a) Ordinary b u d g e t Receipts 103/208,856,000 Expenditures— Ordinary expenses Nonrecurring expenses 83,657,942,000 3,050,914,000 86,708,856,000 Surplus available for the carrying out of the peace treaty (b) Extraordinary b u d g e t Receipts— Sundry receipts Receipts from loans Expenditures 16,500,000,000 1,849,656,000 3,095,462,000 4,945,118,000 4,945,118,000 MARCH, 1922. II. Government monopolies: (a) Ordinary budget— (1) Federal post and telegraph serviceReceipts 16,247,351,000 ExpendituresOrdinary expenditures 15,926,532,000 Nonrecurring e x penditures 320,819,000 16,247,351,000 (2) Federal printing office— Receipts 499,150,000 - Expenditures 499,150,000 (3) Federal railways— Receipts 71,998,628,000 Expenditures 71,998,628,000 (b) Extraordinary budget— (1) Federal post and telegraph " serviceReceipts— Sundry 78,000,000 Receipts from loans. 2,456,460,000 Expenditures (2) Federal railways— ReceiptsSundry Recei pts from loan s. 2,534,460,000 2,534,460,000 6,500,000 6,782,759,000 6,789,259,000 Expenditures III. Execution of the peace treaty: ReceiptsSurplus from general budget... 16,500,000,000 Receipts from loans 171,031,696,000 ExpendituresOrdinary budget Extraordinary budget 6,789,259,000 187,531,696,000 147,687,168,000 39,844,528,000 187,531,696,000 It will be noted that according to this draft of German Government finance for 1922 the finance minister expects to raise more than 183 billion paper marks by loans during the year, 3 billions on account of general administrative expenses, 2J^ billions for the post and telegraph service, almost 7 billions for the railways, and 171 billions for the execution of the Peace Treaty. Of this amount approximately 40,000,000,000 marks will be provided by the forced loan, but it is evident that unless some way can be found to decrease the remaining 140,000,000,000 marks, or to raise that sum without discounting treasury bills, and issuing notes through the Reichsbank, this budget will soon be out of date. It is also pointed out by the German press that recent increases in telegraph, postal, and railway rates, and the removal of the cost of living subsidies will so increase costs that a revision of the budget within a few months will be necessary on that account. THE SITUATION OF THE REICHSBANK. Of the reforms proposed in the January note not the least important is that of the Reichsbank, In the week of January 23 to January 29 the Government announced that it would pay 780 paper marks for a 20-mark gold piece. The official price of gold in Germany has fluctuated during the last two months above 35 paper marks for 1 gold mark. The following 313 FEDERAL RESERVE BULLETIN. table from the Frankfurter Zeitung gives the fluctuations of Government prices for gold since June, 1921: GERMAN GOVERNMENT P R I C E TOR GOLD. (Paper marks paid through the Reichsbank for a 20-mark gold piece.) 1921: June 1-11 June 12-25 June 26-July 3 July 4-10 July 11-31 Aug. 1-Sept. 11.... Sept. 12-18 Sept. 19-Oct. 2 . . . . Oct. 3-16 260 280 300 310 320 340 390 450 480 ! 1921: I Oct. 17-23 I Oct. 24-Nov. 6 . . . . ! Nov. 7-13 | Nov. 14-Dec. 4 . . . . Dec. 5-31 1922: Jan. 1-22. Jan. 23-29 540 600 720 850 720 720 780 It is obvious that a more fundamental reform than the mere separation of the Reichsbank from the interference of the Government is now necessary before German currency can be stabilized. At the end of 1921 Reichsbank notes to the amount of 113,639,000,000 paper marks were in circulation, and the Reichsbank was holding 132,331,000,000 paper marks of the 246,921,000,000 paper marks of outstanding treasury bills. During January the note circulation had declined somewhat, but rose again at the end of the month, standing at 115,376,000,000 paper marks on January 31, while the treasury bills in the possession of the Reichsbank amounted to 126,160,000,000 paper marks on that date. GERMAN BUSINESS CONDITIONS. Reports from Germany seem to indicate that industrial activity there is continuing on the basis of orders placed during the decline of the mark last fall. The latest figures available on unemployment (those for December 1, 1921,) state that 81,228 trade union members out of 5,912,750 were unemployed on that date and that the Government was paying unemployment doles to 147,806. These figures may be compared with those for February and March, 1921, when the greatest unemployment for the year was reported. In February 266,069 trade-union members were unemployed and in March 426,852 persons were receiving unemployment aid from the Government. The general course of prices in Germany still seems to be upward, although declines have been noted in some branches of the textile industry. The Eisenwirtschaftsbund announced an increase in iron and steel prices as of February 1. The increase was caused partly by increase in coal prices and in railway rates and partly by the continued export demand. The wholesale price index number of the Frankfurter Zeitung for March 4 shows 314 FEDERAL RESERVE BULLETIN. an increase of almost 24 per cent. This index now stands at 4,713. as compared with 100 in the middle of 1914. The question of wages has been very much agitated in Germany during the last month. The cost of living has been increased through the withdrawal of various Government subsidies, and since it seems that wages in most industries had not kept pace with the increase in living costs, even before the subsidies were removed, it is natural that wage increases should be demanded within the next few months. ARGENTINE FINANCIAL STATISTICS. A comprehensive article dealing with banking and financial conditions in Argentina appeared in the FEDERAL RESERVE BULLETIN for June, 1920. This issue contains a statistical summary designed to reflect the present financial situation in the Argentine Republic. Accordingly, the following brief resume of the more important financial institutions of the country is published in order that these figures and similar material which will appear regularly in the BULLETIN each month may be fully understood. The monetary system of the Argentine Republic is theoretically on a monometallic basis, the unit being the gold peso or gold dollar, weighing 1.6129 grams, with a standard of 0.9 of fine gold. The gold peso is divided into 100 centavos. Transactions with foreign countries are generally conducted on the basis either of the gold peso or of foreign currency. The only circulating medium within the country at present, however, is the paper peso, known as moncda nacional" (m/n), issued in the form of State notes, this paper money being employed exclusively in all domestic transactions and constituting unlimited legal tender. The legal value of the paper peso is 44 centavos gold, and conversely the value of the gold peso is 2.27 paper pesos, this fixed ratio having been in force since 1899. Prior to that date the paper currency was not convertible into gold and the ratio of paper to gold suffered frequently from wide fluctuations. The official institution known as the "Caja de Conversion/' under the control of the Ministry of Finance, deals with the issue, exchange, and conversion of the paper currency of the country and holds a supply of gold as guaranty for the convertible value of the paper which it issues. This gold conversion fund is built up from certain specified resources, provided for by law. At the outbreak of the war in August, 1914, when the MARCH, 1922. embargo on gold became widespread, the Caja de Conversi6n was authorized to deliver paper money in exchange for gold deposited in foreign countries to the order of the respective Argentine legations. It was thus possible for Argentine exporters to obtain paper currency from the Conversion Office in Buenos Aires, issued against gold which had been placed by foreign importers to the account of Argentine legations abroad. At the same time the exportation of gold from xirgentina was prohibited, except for limited amounts belonging to travelers leaving the country and amounts needed for payment of maritime freights and passages. In September, 1914, an emergency measure was passed suspending delivery of gold by the Caja de Conversion in exchange for paper money. These decrees still remain in force. There is considerable agitation in favor of the resumption of gold exports, especially on the part of importers, because of the greatly increased cost to them of merchandise shipped from the United States at the present exchange level. The Government, however, has been consistently opposed to the shipment of gold in the belief that it was more desirable to keep the metal in the country, in view of present financial conditions in Europe. The authorities argue that inasmuch as most of the countries to which Argentine goods are exported are not on a gold basis at present, the settlement of the existing unfavorable balance of trade with the United States would entirely deplete the gold reserve and result in an even greater depreciation of the currency. During the latter half of 1920 the trade balance, which had been running heavily in Argentina's favor, gradually turned against the country, but exchange with the United States was temporarily stabilized by means of a series of operati©ns which had the efFect of gold movements from Buenos Aires to New York without actually releasing any gold. The Argentine Government had on deposit in the United States a credit of about 79,000,000 gold pesos which had been built up during the war when the balance of trade had strongly favored Argentina and when shipments of gold from the United States were prohibited under the war-time embargo. The gold in this fund was gradually released and paid over to American exporters, while at the same time Argentine importers settled their obligations, through the medium of their local banks, by depositing equivalent amounts of gold in the Caja de Conversion. In this way the stock of gold held by the Buenos Aires banks was reduced from $114,014,000 on May 31, 1920, to $46,179,000 on October 31, 1920, and at the MARCH, 1922. EEDEKAL RESERVE BULLETIN'. same time the gold holdings of the Caja de Conversion increased correspondingly from $399,421,000 to $466,477,000. Gold transfers by this method could continue, however, only so long as the Caja de Conversion had golcl available in the United States. By the autumn of 1920 this fund was exhausted, the trade balance was moving more and more adversely against Argentina, and the prohibition of gold exports continued. The peso suffered severe depreciation as a consequence. Another contributory cause for this depreciation, in addition to unfavorable trade conditions, is found in the necessity for remitting large sums abroad for the service of the public debt and for interest on the great amount of foreign capital invested in Argentine undertakings. Further investment of foreign capital is needed but under present world conditions is hard to obtain. Since the middle of 1920 the fiduciary circulation of the country has remained practically stationary at 1,362,564,000 paper pesos, and there has been no change in the gold reserve held in guaranty of this paper. The continued suspension of gold delivery by the Caja de Conversion has not affected the fixed ratio of gold to paper. Stocks of gold held in the banks show a steady diminution. There has been a great deal of agitation in Argentine financial circles in favor of the establishment of a central banking system, similar to the Federal Reserve System, with a strong central bank of issue and rediscount. At present the official Government bank, the Banco de la Nacion, operates largely as a commercial bank and is regarded by other commercial banks as a competitor rather than as a central institution. Although it has authority to. rediscount bills for these banks, this power is not exercised to any great degree. The National Government appoints the directors and is directly responsible for the operations and for the deposits of the Banco de la Nacion. The bank can not make loans to any Government or municipality except the National Government, and such loans may not exceed 20 per cent of its capital, though this restriction is withdrawn in case of necessity. The bank is allowed to employ up to 20 per cent of its funds in bonds of the national public debt acquired in the open market. As an emergency measure, the Caja de Conversion was empowered to issue and deliver to the Banco de la Nacion, at its request, legal tender notes in exchange for commercial bills of the bank's own portfolio, or those which it might have rediscounted for other banks in Argentina, always provided that the gold guaranty of the 315 fiduciary circulation did not fall below 40 per cent. The Banco de la Nacion is to-day the most important banking institution in the country and has figured prominently during recent years as the intermediary of the National Government in its various credit operations with foreign Governments. At the end of 1919 it had 156 brandies and 25 agencies throughout the Republic. Many of the commercial banks in Argentina are organized with foreign capital and are largely interested in financing foreign trade. The "Banco Hipotecario Nacional," or National Mortgage Bank, which was founded in 1886, grants loans on real estate throughout the Republic by means of the issue of " cedulas," or mortgage certificates, bearing interest of 6 to 7 per cent, to persons mortgaging their properties to the bank. The bank is authorized by law to maintain a total circulation of 1,000,000,000 paper pesos, and thus far 10 series of these bonds have been issued. The latest, amounting to 50,000,000 paper pesos, was placed on the market in the autumn of 1921, bringing the total amount of cedillas outstanding up to 688,000,000 paper pesos. Transactions in cedulas constitute an important element in the business of the Buenos Aires stock exchange. These bonds are also listed on the stock exchanges of Paris, Antwerp, and Madrid. Administrative expenditures in the Argentine Republic have increased less during the past ten years than has been the case in most other countries, but there was a serious falling off in fiscal revenues during the war years, due largely to the decline in imports. Important sources of revenue in addition to customs receipts are the land tax, tobacco, and alcohol taxes, licenses and stamps. There is as yet no income tax in Argentina, although proposals for such taxation have been under discussion. The floating debt, resulting chiefly from budgetary deficits, amounted on July 31, 1921, to $640,000,000 (paper), consisting entirely of internal obligations, most of them in the form of Treasury bills. On December 31, 1921, the floating debt was estimated to be $636,817,477 (paper) which included the 2-year $50,000,000 loan contracted in New York last September. Many schemes have been proposed for the consolidation of this floating debt, among others a national lottery loan of $600,000,000, and a foreign loan, but thus far no definite action has been taken by the Government. The consolidated debt, consisting of both external and internal obligations, amounted on September 30, 1920, to §553,270,910 gold. CO A R G E N T I N E FINANCIAL SITUATION. [Amounts expressed in thousands.] Private banks.1 Banco de la Nation. Cash. Caja de Conversion. Cash. Discounts' Deposits and ad- ! (paper). vanccs (paper). | Gold. Date. Paper. l i - i ; Deposits ! counts ! I and (paper). ! vanccs \ | (paper). ; ! i Gold guarantee j Clearings 2 (paper). DLS Public debt. Note circulation (paper). Paper. Exchange, average monthly Consolidated. Bank- rate of ruptcies New during2 York on Float- month Buenos ing (paper). (paper). Aires (par: of note I circulation held i in— Caja ! Internal. Exj Argon- ternal (gold). do j tine Cqnver- • lcgasion.:{ tions. Gold. $96.48= 100 gold pesos). Paper. I E n d of— 1933... 1914 1915 1916 1917 1918 1919 1920 E n d of— July.... Aug Sept Oct Nov Dec 1921. E n d of— Jan Feb Mar Apr May June July Aug.. Sept. Oct.. Nov.. Dec ! 1,468,514 i 1,242,043 I 1,469,121 1 1,657,058 2,013,781 j 2,843,606 I 3,009,794 3,529,841 1,540,817 1,195,552 1,241,992 1,317,035 1,553,540 1,,884,802 2,113,333 2,505,215 i i I i 2,356,009 2,401,751 2,433,500 2,465,490 2,508,708 2,505,215 3,494,194 3,556,180 3,508,980 3,463,507 3,518,366 : 3,529,841 61,737 50,264 26,922 33,344 57,057 54,146 65,908 45,863 ! ' i i I j 70,084 64,905 53,640 46,179 45,649 45,863 435,343 541,385 477,696 32,000 404,175 605,411 496,660 28,000 598,126 692,365 444,579 10,000 624,310 755,655 441,682 14,000 656,765 871,056 533,452 36,000 830,400 1,195,044 532,009 36,000 •770,620 1,249,730 676,028 38,959 1,081,134 1,412,351 803,846 24,726 996,011 1,031,718 1,029,933 1,038,244 1,068,351 1,08.1,134 ISO, 000 194.000 362) 000 366.000 295'000 315,000 267,963 405,731 1,4.71,073 1,023, 234 1,125,203 1,315,315 1,586,941 2, 244,627 2,805,335 3,611,547 1,390,669 730,521 I 48,222 327,052 i " 387*431' , 1,374,133 1,412,955 1,412,351 4,124,264 3, 494,088 3,517,365 3,379,833 3,329,885 3,319,678 727,098 748,872 779,258 803,846 31,900 24,791 24,651 24,726 440,416 803,425 814,328 840,025 817,706 830,015 844,367 846,006 827,588 816,265 802,617 840,438 866,186 24,660 23,990 23.766 23,671 23.767 23,760 23,321 23,566 23,176 23,197 23,158 23,174 400,754 401,458 39S, 509 423.191 419)093 386,430 386,821 402,731 I 431,076 448,063 463,245 410,160 438,194 442,553 405,731 j i ': i i I ; I 823,263 263, 198 803,280 231,71.0 ; 987,640 247,292 1,013,099 270)321 j 1,013,137 I 271,598 1,154,456 289,465 1,177,174 320,032 1,362,564 476,478 2,695 68,344 56/514 55,254 99,567 78,997 4,123 1,362,561 452,865 1.362,563 458,048 1,362,563 •469,460 1.362,564 476,477 1,362,564 476,477 1,362,564 476,477 27,734 ! 22,552 i 11,140 ! 4,123 i 4,123 4,123 308,855 312,424 309,302 i i | \ ' 301)278 294,625 282,828 275,028 157, 155, 153, 151, 202, 199, 196, 177, 493 | " 14,413 • 174, US j 140,611 I 35,895 169, 173 276,736 14,376 •j-7-7 o n o ! o ana 214, 377,893 8.506 223, 587,800 6)656 219, 515,692 3,229 214, 650,938 2,508 515,798 T 4,817 0180 7040 3,744 3, 021 545,988 ; 4,283 5,023 11,490 515,798 12,199 92.26(10 87.1000 84.5740 81.3710 70.8740 78.7340 11,722 10,065 10,092 14,406 7,969 16,658 12,132 11,778 7,837 16,050 13,109 12,845 78.202 73.958 71. 848 69. 857 65.799 66.555 69.63 73.078 73.4739 74.8042 i I ! 3,489,487 2,532,177 3,401,920 2,546,055 I 3,437,544 2,558,296 ! 3,459,472 2,529,260 I 3,461,139 2,545,837 i 3,455,410 2,538,109 I 3,454,432 2,544,285 3,444,350 2,518,570 3,446,703 2,492,297 3,390,975 2,467,292 3,358,766 2,501,150 ! 3,375,086 2,543,410 45,582 44,022 42,771 41,484 40,872 39,457 38,316 37,688 36,391 36,066 35,956 35,782 1,071,579 1,023,630 1,059,237 1,082,060 1,098,761 1,090,002 1,072,425 1,092,727 1,151,904 1,171,500 1,150,213 1,087,131 1,373,967 1,341,822 1,352,611 1,356,370 1,360,732 1,351,870 1,349,529 I 1,349,138 |1,350,486 1,311,197 1,293.389 l,310;050 308,094 I 1,362,564 I 816,960 I 1,362,564 ' 131,733 ; 1,362,564 372,810 i 1,362,564 103,766 I 1,362,564 052,043 j 1,362,564 065,151 I 1,362,56 i . 093,090 i 1,362,564 I 076,066 i 1,362,564 909,200 : 1,302,564 133,300 ! 1,362,564 ,482,239 ! 1,362,564 470,477 476,477 476,477 476,477 476,477 476,477 476,477 476,477 476,477 476,477 476,477 476,477 4,123 4,123 4,123 4,123 4,123 4,123 4,123 4,123 4,123 4,123 4,123 4,123 800,000 '640,'666' 636,817 79.382 1 Includesfiguresof Banco do la Nation. 2 1913-1919 figures arc monthly averages. 3 Includes amount held in conversion fund of Banco de la Nation. Prior to outbreak of war the Banco de la Nation hold $30,000,000 as its portion of the gold guarantee. In August, 1914, §20,000,000 of this amount was mobilized, leaving 810,000,000 in the bank's conversion fund since that date. 317 FEDERAL RESERVE BULLETIN. MARCH, 1922. State Banks and Trust Companies. DISTRICT N O . 8. ADMISSIONS. The following list shows the State banks and trust companies which were admitted to membership in the Federal Reserve System during the month ending February 28, 1922, on which date 1,632 State institutions were members of the system. Total resources. Trustee, executor, administrator, guardian of estates, assignee, receiver, and committee of estates of lunatics: National Bank of Berild, Benld, 111. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics: American National Bank, Mt. Carmel, 111. DISTRICT N O . 10. Guardian of estates, assignee, receiver, and committee of estates of lunatics: First National Bank, Kansas City, Mo. Commercial Failures Reported. District No. 2. Overpeck Trust Co., Ridgefield Park, Globe Exchange Bankj Brooklyii*N.* Y. Midwood Trust Co., Brooklyn, N. Y . . . $100,000 I $25,000 $125,000 200,000 I 40,000 2,026,284 500,000 j 250,000 ! 2,097,207 District No. 8. Peoples Savings & Dime Bank, Scranton, Pa 700,000 I 450,000 HO, 813,148 District No. 6. Polk County Trust Co., Lakeland, Fla.. District No. 8. Montgomery County Loan & Trust Co., Hillsboro,Ill Southern Commercial & Savings Bank, St. Louis, Mo - 300,000 j ! i ! 438,119 100,000 50,000 I 650,215 200,000 i 50,000 I 2,745,536 District No. 9. Daly Bank & Trust Co., Anaconda, Mont 100,000 100,000 I 2,731,029 i, 000 i.000 Current statistics disclose a continued increase in number of failures in the United States over those of a year ago, the 1,820 defaults reported to R. G. Dun & Co. for three weeks of February comparing with 1,186 in the corresponding period of 1921. The returns for January, the latest month for which complete figures are available, show 2,723 commercial insolvencies for 873,795,780, as against 1,895 failures, with liabilities of $52,136,631, in January, 1921. In point of number, the defaults of January, this year, are the largest of any month since January* 1915, but the indebtedness, although much above the monthly average, reveals a considerable reduction from the highrecord total of $87,500,000 in December, 1921. Separated according to Federal Reserve districts, the January statistics disclose more defaults in every instance than in that month of 1921, while only in the first and fourth districts arc the liabilities less, than those of the earlier period. | 5,000 ! 103,417 5,000 j 104,626 FAILURES DURING JANUARY. District No. 11. First State Bank, Bedias, Tex Iola State Bank, Iola, Tex Number. Withdrawal.—Hillsboro State Bank, Hillsboro, Ind. Converted into national banks.—City Trust & Savings Bank, Grand Rapids, Mich.; First State Bank, Locust Grove, Okla.; State Bank of Enumclaw, Enumclaw, Wash.; Mercantile Trust Co., New York, N. Y. First Second Insolvent bank.—Woodville State Bank, Woodville, Tex. Third Voluntary liquidation.—Rideout Bank, Marysville, Calif. Merger.—Long Beach Trust & Savings Bank, Long Beach, Calif., Fourth and Guaranty Trust & Savings Bank, Los Angeles, Calif., with Security Fifth Sixth Trust «e Savings Bank, Los Angeles, Calif., a member bank. f Soventh.. Eighth Ninth... Tenth Fiduciary Powers Granted to National Banks. Eleventh The applications of the following banks for permission Twelfth to act under section 11 (k) of the Federal Reserve Act were approved by the Board during the month ending February 28, 1922: DISTRICT No. 2. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics: Hudson County National Bank, Jersey City, N. J. National Exchange Bank, Carthage, N. Y. Mercantile National Bank, New York, N. Y. DISTRICT NO. 5. Trustee, executor, administrator, guardian of estates, assignee, receiver and committee of estates of lunatics: First National Bank, Holly Hill, S. C. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates assignee, receiver, and committee of estates of lunatics: First National Bank, St. Marys, W. Va. Liabilities. District- Total 1922 1921 1922 1921 209 429 136 242 233 283 362 177 109 112 207 224 183 $2,600,442 390 22,885,754 96 2,561,559 133 6,238,303 142 4,696,036 195 5,012,931 222 10,314,358 126 4,013,092 48 2,597,637 82 3,400,430 155 4,326,594 123 5,148,644 $3,841,114 9,808,623 2,183,908 6,661,913 3,887,908 4,054,436 9,182,523 2,370,168 583,858 1,767,286 3,359,871 4,435,023 2,723 1,895 73,795,780 52,136,631 New National Bank Charters. The Comptroller of the Currency reports th • following increases and reductions in the number and capital of national banks during the period from January 28, 1922, to February 24, 1922, inclusive: : Num- Amount berof of ; banks. | capital. New chaters issued •• ,§1,245,000 Restored to solvency • ! o Increases of capital approved i ; I 7,960,000 Trustee, executor, administrator, registrar of stocks and bonds, guardnew charters, banks restored to sol- ; * ian oi estates, assignee, receiver, and committee of estates of lunatics: Aggregate of banks increasing capital 9,205,000 vency, and American National Bank, West Palm Beach, Fla. Liquidations 1,575,000 First National Bank, Barnesville, Ga. Reducing capital 90,000 First National Bank, Gulfport, Miss. Total liquidations and reductions of capital 1,665,000 Consolidations of national banks under act of Nov. : DISTRICT NO. 7. 7,1918 750,000 Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics: Aggregate increased capital for period i 9,205,000 Galesburg National Bank, Galesburg, 111. 1,665,000 Reduction of capital owing to liquidations, etc ' First National Bank, Elwood, ind. Net increase ....! 7,540,000 American National Bank, Racine, Wis. Trustee, executor, administrator, guardian of estates, assignee, receiver, * Includes one increase in capital of $50,000, incident to a consolidation and committee of estates of lunatics: under act of Nov. 7,1918. First National Bank, Colfax, Iowa. DISTRICT N O . 6. 318 FEDERAL RESERVE BULLETIN. MARCH, 1922. LAW DEPARTMENT. There is published below the text of a letter addressed to the chairman of the Banking and Currency Committee of the Senate, expressing the opinion of the Federal Eeserve Board in favor of the bill recently recommended to Congress by the Joint Commission of Agricultural Inquiry. JANUARY 26, 1922. MY DEAR MR. CHAIRMAN: Receipt is acknowledged of your letter of January 23, 1922, inclosing a copy of Senate bill 3051 and requesting the views of the Federal Reserve Board with regard to it. This is the bill the enactment of which is recommended in the recently published report of the Joint Commission of Agricultural Inquiry. The same bill has also been introduced in the House of Representatives as H. R. 10058. While the proposed bill deals mainly with the Federal farm loan system, the administration of which does not, of course, come within the jurisdiction of the Federal Reserve Board, the Board is glad of the opportunity to say that the bill has its cordial approval and support. The Board believes the bill to be sound and constructive legislation that is well designed to a fiord much needed relief to agricultural and live-stock interests by adding to their available credit facilities, which at the present time are not adequate for their requirements. The bill proposes to add to the Federal farm loan act a new title, Title II, consisting of sections 201 to 209. Subdivision (a) of section 201 provides that each Federal land bank, subject to regulation by the Federal Farm Loan Board, may discount for any bank or live stock loan company, with the indorsement of such bank or company, any note or other such obligation the proceeds of which have been used for an agricultural purpose or for the raising, breeding, fattening, or marketing of live stock, and may make loans to any cooperative association of producers of staple agricultural products upon the security of warehouse receipts covering such products. Subdivision (b) of section 201 provides for the issuance by Federal land banks of debentures or other such obligations with maturities not in excess of three years, secured by discounts or loans made under subdivision (a). Section 204 provides that any Federal Reserve Bank may discount for a Federal land bank, upon the latter's indorsement, discounts or loans made under section 201 which have a maturity at the time of discount by the Federal Reserve Bank not in excess of six months, and section 206 provides that any Federal Reserve Bank may buy and sell the debentures and other obligations of a Federal land bank issued under section 201 to the same extent and subject to the same limitations as those upon which they may buy and sell Federal farm loan bonds. The other sections of the new title provides for the creation of a "farm credits department" in each Federal land bank for the purpose of exercising the powers conferred by the title, and provide that the capital of each such department shall be $1,000,000, to be subscribed by the United States, and contain certain other necessary administrative provisions which are not important for the purposes of this general discussion. At the present time the Federal farm loan act provides the means for supplying the farmers long-time credits upon the security of first mortgages upon agricultural lands; and under the terms of the Federal Reserve Act agricultural paper with a maturity not in excess of six months is eligible for rediscount by Federal Reserve Banks after it has been discounted and indorsed by a member bank of the Federal Reserve System. As pointed out, however, in the Report of the Joint Commission of Agricultural Inquiry, there is need for agricultural credits of an intermediate type, running from six months to three years, for production and marketing purposes. The farmers' turnover in the production of crops, including the planting, harvesting, and gradual marketing through orderly processes designed to avoid flooding the market at any one time, normally requires approximately twelve months; and in the live-stock industry the turnover may require as long as three years. Consequently, in order to make it possible for the farmer and live-stock man to liquidate, out of the ultimate proceeds of his agricultural transactions, his indebtedness incurred for production and marketing purposes, it is necessary that such indebtedness be permitted to run for periods ranging from six months to three years, depending upon the particular commodities being produced and marketed. Loans with such maturities can not be granted, in sufficient amounts to meet the needs of agriculture, by ordinary banking institutions the liabilities of which are for the most part payable on demand, unless the banks can rely on being able to rediscount the loans in emergencies. The main purpose of the bill under consideration, as the Federal Reserve Board understands it, is to provide proper and adequate facilities for such rediscounts. Bills have been introduced in Congress within the past year proposing to amend the Federal Reserve Act so as to make eligible for discount by Federal Reserve Banks agricultural paper with maturities up to twelve months, instead of six months, as the law now provides. The Board has expressed its disapproval of these and similar bills, because the enactment of any such bill would materially lessen both the liquidity of the paper held by the Federal Reserve Banks and the elasticity of the Federal Reserve note currency which is based upon and secured by the paper so held. The bill recommended by the Joint Commission of Agricultural Inquiry avoids this danger, and at the same time offers far more adequate relief to the agricultural interests of the country than could be obtained through the enactment of such an amendment to the Federal Reserve Act. The Federal Reserve Board has carefully examined the bill introduced in the Senate as S. 3051, and in the House of Representatives as H. 11. 10058, and approves not only the purpose and substance of the bill, but also the form and language that have been adopted in drafting it. The Board is of the opinion that the bill is admirably designed to accomplish the purposes which its framers have in mind and that its various provisions are so coordinated as to provide the most efficient machinery for the performance of the new functions of the Federal land banks without in any way interfering with their present activities. Very truly, yours, W. P. G. HARDING, Governor. Hon. GEORGE P. MCLEAN, Chairman Committee on Banking and Currency, United States Senate. MARCH, 319 FEDERAL RESERVE BULLETIN. 1022. PRICE MOVEMENT AND VOLUME OF TRADE. INTERNATIONAL WHOLESALE PRICE INDEXES—UNITED STATES AND ENGLAND. In the chart below a comparison is made between wholesale prices in England and the United States. The upper line shows English prices in terms of sterling, the dotted line English prices in gold, and the solid line the American price level. All are expressed in their ratio to the prewar level which is taken as 100. The American dollar and British sterling prices were obtained by the construction of similar index numbers of wholesale prices of commodities in the United States and England. Gold prices for England were obtained by multiplying the British index number by a ratio showing the depreciation of sterling in terms of dollars; the quotient was then divided by 100. On page s 320 and 321 the index numbers upon which the charts are based are published in detail; there is also a description of how they are constructed. The general similarity in the trend of British and American prices is apparent from this ^hart. In both countries there was a brief post armistice decline in prices, followed by a more or less steady advance to May, 1920. From that time until the spring of 1921 there was a rapid decline in both countries, but it was more rapid in the United States than in England. Since last spring American prices have not shifted greatly, but, following a brief period of stability during the summer, British prices have continued to decline. The dotted line shows that since control of exchange rates ceased the difference in the level of prices in the two countries has been to a large extent compensated for by the exchanges. In other words, British prices in terms of gold have approximated American prices since Government control of the exchanges was lifted. Exception must be made to this statement for the period from January to June, 1921, when American prices were appreciably lower than British, even when the latter were converted to the gold or dollar basis. INDEX NUMBERS OF WHOLESALE PRICES IN THE UNITED STATES AND ENGLAND FEDERAL RESERVE BOARD, 1919-1922 AVERAGE PRICE LEVEL OF 1S13 = 1OO 5OO 500 4-50 450 400 400 350 350 300 300 250 200 150 150 - U N I T E D STATES - ENGLAND (IN STERLING) •ENGLAND .CONVERTED TO GOLD BASIS ) 100 too 60 J.F. M.A.M. J. J.A. S.O.N.D. J. F. M. A. M. J. J. A.3. O. N. D. J. F M. A. M. J. J. A.S.O.N. D. J. F. M. A. M J. J. A.S. 0. N.D. 1919 1920 1921 1922 80 320 FEDERAL RESERVE BULLETIN. MARCH, 1922. INDEX NUMBERS OF WHOLESALE PRICES IN UNITED STATES—CONSTRUCTED BY THE FEDERAL RESERVE BOARD FOR THE PURPOSE OF INTERNATIONAL COMPARISON.* [Average prices in 1913=100.] Raw Goods | Goods imexI mateported, ported. rials. Date. 1919, average 1920, average 1921, average Producers' goods. Consumers' goods. All commodities. 174 191 108 214 227 ! 131 209 235 141 198 237 142 207 229 149 206 233 145 114 • ; 103 ! 104 106 ! 107 i 108 111 142 122 123 144 141 138 136 164 134 133 138 140 141 140 166 133 133 132 128 127 159 153 157 152 145 143 140 163 142 142 143 141 140 138 110 135 141 126 139 138 1921. January July August September October November December ; 1 : ! 13(3 1922. January i The index number of the Federal Reserve Board has been constructed primarily with a view to international comparisons of wholesale prices. The number has been published monthly since May, 1920, but is computed for the years 1913,1919, and the first of 1920 as well. For detailed information regarding the makeup of the number, reference may be made to the FEDERAL RESERVE BULLETIN for May, 1920, pages 499-503. The commodities included in the different groups are listed there with exact specifications and markets indicated. The "weights" assigned to the different commodities in constructing the index numbers are also given in detail. Revisions in prices or weights appear in BULLETINS for June, 1920, and Juno, 1921. The index of "goods produced" consists of 74 quotations (30 raw materials, 24 producers' and 20 consumers' goods). These include agricultural products (such as grains, live stock, and textiles), minerals, and lumber, among the raw materials; yarns, leather, semifinished steel products, refined oils, chemicals, building materials, etc., among the producers' goods; and potatoes, meats, flour, rice, dairy products, cotton and woolen cloths, boots and shoes, and kerosene among the consumers' goods. s, DOOIS ana snoes, ana Kerosene among nio consumers' gooas. Theind of "goods imported" consists of 18 quotations (9 raw materials, 7 producers' and 2 consumers' goods). It-includes Egyptian cotton, * ' " Hie index "" Australian •< South American raw wool, Japanese and Chinese silk, South American hides, Straits tin, and Canadian lumber among the raw ralian and materials; plantation and Para rubber, Chilean nitrate, cane sugar, burlap, sisal, etc., among producers' goods; and tea and cotlce for consumers' goods. Leading American exports arc included in the index of prices of "goods exported," which is made up of 40 quotations (17 raw materials, 12 producers' and 11 consumers' goods). Grains, tobacco, cotton, copper, coal, pig iron, petroleum, and lumber make up the list of raw materials; vegetable oils, leather, semifinished metal products, refined oils, and chemicals the producers' goods; and wheat flour, refined sugar, pork products, coffee, cotton cloth, boots and shoes, and kerosene the consumers' goods. The index numbers of "raw materials," producers' goods,'.' and "consumers' goods," consist of the commodities mentioned above which fall into these classes, whether they are of domestic or foreign origin. The raw materials group include 39 quotations, the producers' goods 29, and the consumers' goods 22. The quotations are obtained from representative trade journals and private firms. About half of them are the same that are used by the Bureau of Labor Statistics in its larger compilation of prices and are furnished to the Board by that bureau. INDEX NUMBERS OF WHOLESALE PRICES IN THE UNITED STATES 1920-1922 CONSTRUCTED BY THE FEDERAL RESERVE BOARD FOR THE PURPOSE OF INTERNATIONAL COMPARISON AVERAGE PRICE LEVEL OF 1913 = 1OO 500 500 450 450 ALL COMMODITIES 1 ^AW M A T E R I A L S GOODS EXPORTED 400 :ONSUMERS GOODS 400 350 350 300 300 250 250 / • ' \ 200 200 \ \ \ 150 150 > : 100 100 B0 80 M.A.M. J. J. A.S. O. N. D. J. F. M. A. M. d. J. A. S. 0-N-D-J. F. M.A. M.J. J. A. S. M. A. M. J. J. A. S. O. N. D- J. F. M. A. M. J. J. A. S. O. N. D. J. F. M. A.M.J. J. A. S. 1920 1921 1922 1920 1921 1922 MARCH, 321 FEDERAL RESERVE BULLETIN. 1922. INDEX NUMBERS OF WHOLESALE PRICES IN GREAT BRITAIN—CONSTRUCTED BY THE FEDERAL RESERVE BOARD FOR THE PURPOSE OF INTERNATIONAL COMPARISON.* [Average prices in 1913=100.1 ConProduc- ! Consum- All comGoods Goods Goods Raw verted to ers' ers' produced. imported.! exported materials. goods. j goods. modities. gold basis. ; Dale. 1919, average.. 1920, average.. 1921, average.. 238 I 315 ! 207 i 247 ! 294 I 171 i 275 438 183 226 291 ' 197 26 L ! 355 i 178 • 241 292 219 241 314 201 221 242 159 252 204 202 199 192 182 176 207; 164 ! 165 i 170 163 i 154 : 152 24(> 174 168 171 175 164 15S 233 192 193 195 187 177 173 231 165 ! 161 1 1.65 166 1.53 M7 261 222 223 212 200 191 186 244. 196 195 194 187 177 172 188 146 146 148 149 144 147 149 158 11 7 147 1921. January July..: August September.. October November.. December.. I ; ! ' ' i ! 1922. January. L70 i i 1 The British index number is the second of the series of wholesale price indexes to be completed by the Federal Reserve Board for the purpose of international comparisons. It was published for the first time in the FEDERAL RESERVE BULLETIN for February, 1922, but is also computed for the years 1913,1919,1920, and 1921. ' Detailed information regarding the make-up of the number may be found in the FEDERAL RESERVE BULLETIN for February, 1922. pages 147-153. The entire list of commodities included in the different groups is furnished there with exact specifications and markets indicated. The "weights" assigned to the different commodities in constructing the index numbers are also given in detail. The commodities which form the basis for the index number are for the most part the same as those used in the Federal Reserve Board index of American prices. The index of" goods produced" consists of 55 quotations (16 raw materials, 26 producers' and 13 consumers' goods). These include agricultural products (grains, live stock, wool, and hides), pig iron, coal and coke among the raw materials; cotton yarns, woolen yarns and wool tops, semifinished iron and steel products, building materials, chemicals, leather, etc., among the producers' goods: cotton cloth, boots and shoes, food products, and tobacco among the consumers' goods. The index of "goods imported" consists of 43 quotations (23 raw materials, 9 producers7 and 11 consumers' goods). These include American and Australian wheat, American tobacco, American and Egyptian cotton, Australian wool. Straits tin. American copper, Swedish lumber, etc.. . .^ * ' v._ IT* *. T a: r._-i«_ • _J ^ -r-fc „ " Ii ... i _ ._ J. ._ i • a. T. * _ • ' , i i X , 7 . * *. . * , . ' into these classes, whether they are of domes! ic or foreign origin. The raw materials group includes 39 quotations, the producers' goods 35, and the consumers' goods 21. The " all commodities " index is obtained by combining the group indexes of domestic and foreign goods. 11 consists of 98 diffcreii t, quotations. As a general rule quotations have been obtained from trade journals which have well organized price collecting services, or from individual firms. The American consul in London supervises the collection of the prices each month and cables them to the United States about the 7th of the following month. The index number is constructed here and is ordinarily ready for publication by the 1.0th to 15th of each month. INDEX NUMBERS OF WHOLESALE PRICES IN ENGLAND 1920-1922 CONSTRUCTED BY THE FEDERAL RESERVE BOARD FOR THE PURPOSE OF INTERNATIONAL COMPARISON AVERAGE PRICE LEVEL OF 1913 = 100 500 450 *\ 400 —--ALL \ 500 450 COMMODITIES 400 •. 350 350 ..... 300 300 \ \ 250 \ \ \ • \ *^\ V \ \ 200 s N \ \ '** \ •• 150 100 100 80 M.A.M.J. J. A. S.O.N.D. J. F. M. A. M. J. J. A.S-0. N. D. J. F. MA. M.J. J. A. S. M. A. M. J. J. A. S. 0. N. D. J. F. M. A. M. J. J. A. S. 0- N. D. J. F. M. A.M. J. J. A. S. 1920 92371—22- 1921 1922 1920 1921 1922 322 FEDERAL RESERVE BULLETIN. MARCH, 1922. INDEX NUMBERS OF WHOLESALE PRICES IN THE UNITED STATES FOR PRINCIPAL CLASSES OF 2 COMMODITIES—BUREAU OF LABOR STATISTICS—REGROUPED BY FEDERAL RESERVE BOARD. [Average prices in 1913=100.1 Raw materials. Producers' goods. Year and month. Animal 1920, average 3 1921, average s Forcst ! Mineral 256 133 183 , JOS : 333 : 208 ! 235 187 .155 122 123 142 134 129 . 129 : 119 109 i 112 104 : .105 ! 103 • ' 102 ! 245 i 200 ! 194 : 193 200 ! 208 ! 220 177 175 172 170 178 178 . 129 i 107 ! 207 : 176 Consumers' goods. All commodities. 240 ] 51 235 140 252 161 243 153 175 | 145 ! .146 i 1.45 I 145 : 146 ! 109 134 . 132 133 : 133 i .130 130 i 182 153 162 160 158 157 155 177 148 152 152 150 149 149 147 | 127 : 151 148 1921. January July August September.. October November.. December.. 2 0 3 '•• 145: I 1922. January. 2 As the index number of the Bureau of Labor Statistics (which-is based upon 315 quotations) has been reclassified by the Federal Reserve Board, the raw materials group consists of approximately 76 quotations, the producers' goods of about 80, and the consumers' goods of 158. R;aw materials have been subclassified into agricultural products (mainly grains, cotton, and tobacco), based upon 19 quotations, animal products based upon the same number, forest products based upon 11 quotations, and mineral products based upon 27 quotations. The FEDERAL RESERVE BULLETIN for October, 191.8, contains a list of the commodities in each group. The weights are the same as those used by the Bureau of Labor Statistics. 3 These reclassifiod averages, with the.exception of those for the "all commodities," are based on the 12 monthly, .not the weekly, figures for the year, as are the original averages compiled by the Bureau of Labor Statistics. In order to give a more concrete illustration of actual price movements in the United States, there are also presented in the following table monthly actual and relative figures for certain commodities of a basic character. The prices shown in tlie table have been obtained from the records of the United States Bureau of Labor Statistics, except in the case of bituminous coal, prices for which have been obtained from the Coal Age. AVERAGE MONTHLY WHOLESALE PRICES OF COMMODITIES. [Average price for 1913= J.OO.J Corn, No. 3, Chicago. Year and moni'h. 1913 1919 1920 1921 Wheat, [ Cotton,middling, northern Xo. 1, spring, • New Orleans. Minneapolis. Wheat, No. 2, red winter. Chicago. Cattle, steers, good to choice, Chicago. Hides, packers, heavy native steers, Chicago. I Average I Rela- j Average j Rela- i Average price per tive ! price per live I price per bushel. price. ; pound, i price, j bushel. Relative price. SO. 8735 2.5000 2, 5581 1.4000 100 294 293 168 SO. 9863 ] 2.5370 2.5225 1.4353 100 214 114 ! 90 | 102 j 155 I 151 I 138 1.35 1.7884 1.4384 1.3953 1.4825 1.3191 1.2535 1.2594 205 165 160 170 151 144 144 1.9613 1.2291 1.2373 1.2769 1.1938 1.1758 1.1767 91 75 76 76 81 80 90 130 1.2995 149 1. i960 90 SO. 0155 • ' 1.5800 : 1.3908 i . 5048 • 100 . SO. .1.270 257 .3185 ' 227 '' .330L ! 92 ' . H14 ! 100 251 200 111 Average prit e per bushel. Average j Relaprice per' tive pound. price. 170 76 1921. January July August September October November December .6553 . .0019 : .5578 ' .5344 .4047 " • .4728 ; . 4609 100 98 9L 87 , ' " ! ! 70 ' . 1450 . .1.147 ! .1290 '• .1903 ! .1913 i . .1750 ; . 1713 ! 1922. January .4738 , .1650 ! MARCH, 323 FEDERAL RESERVE BULLETIN. 1922. AVERAGE MONTHLY WHOLESALE PRICES OF COMMODITIES-Continued. Wool, Ohio, J-$ grades, scoured, eastern markets. Hogs, light, Chicago. Yellow pine, flooring, New York. Hemlock, New York. Yen r a n d month. I Average 1 price per : 100 ; pounds. 1913 19.19 J920 1921 i S8.4541 I 18.3260 ' 14.710(3 :.." 8. 8913 1921. January J nly..." August; September October November December | \ 9. 6700 i i 10.2000 ; 10.3950 ! 8.5000 j 8.1800 : 6.8688 ' 7.0250 Relative price. Average price per pound. Relative price. Average price per Mfeet. ! Average I price per j Re'.a- ; Average Rela- ; Average j RelaM'feel tive | price per live j price per • tive manufac- price, i short Ion.- price, short ton. price. Relative price. lured, 100 2L7 174 J 05 SO. 4710 1.1894 .9712 . 5076 S24.2273 39.7500 56.6667 40. 8960 1.16 104 100 100 100 108 112 48.0000 37.5000 37.2500 37.2500 37.2500 37.2500 37.2500 198 155 154 154 154 154 154 . 5818 si: 83 100 248 203 108 . 5455 . 4909 .4727 .4727 .4727 . 5091 . 5273 1L4 i 121 123 L01 : 97 ' ! Coal,bituminous, Coal,bituminous, ! run of mine, f.o.b. Pocahonlas, f.o.b. spot at mines, spot at mines, Pittsburgh. Columbus. 124 37.2500 j 154 : 95.5000 '• SI.3200 100 i 81.5710 : 1.00 6.0433 2.2030 458 167 5.8891 i 3.1804 | 375 202 247 204 206 206 202 204 214 2. 5300 2.0750 2.1300 2.2310 2.1800 | 2.1500 2.1500 192 157 161 169 165 163 163 4.2500 : 3.2000 i 3.0600 i 2.9190 ' 2. 6800 2.4500 , 2.1950 ' 271 204 214 ioo ! 844.5909 164 I 78. 8333 234 : 145.4167 169 I 93. 7083 i ! i I I i ! j 2,1500 163 ! 2.1500 100 177 ; 326 = 210 110.0000 91.0000 | 92.0000 i 92.0000 j 90.0000 I 91.0000 ' 95.5000 ! 195 186 171 156 140 1922. 8. .1600 j Januarv. 1 I Coal, anthracite, j r , r stove, New York,! \R« e 'at furnace. : i tidewater. ' j ville, at Co Load, pig, desilverized, New York. PPer, ingot, electrolytic, New Y ork. : 137 Petroleum, crude,; Pig iron, basic, Mahoning and Pennsylvania, Shenango Valley, at wells. at furnace. Year and month. 1 .Average i price per long ton. 1913 1919 1920 192L i $5.0613 1 8.1639 ,.; 9. 4265 I 10. 5514 January July August September.. October November.. December.. ! I ! laRela- I Average | Rela- Average Rela- Average j Rela- , Average | Rela- ! Average • Relative \ price per ! tive price per , tive p'rice per ; tive ! price per j tive : price per j tive ve price, j short ton.; price. pound. price. pound. | price. barrel, j price, 'long ton.! price. ce. 100 161 186 209 $2.4396 ; 4.7375 10.8163 j 3.6361 1921. 10.6373 10. 5048 10.6036 10.7075 10. 7125 10.6859 10. 7063 210 208 210 212 212 211 212 5. 5313 2.9063 2.8000 3.1875 3. 2750 2.9700 2. 7500 10.6935 211 2.7500 ! SO.1573 . 1911 .1797 . 1262 227 119 115 131 134 122 113 ! 100 194 413 149 .1288 ' . 1253 i .1173 : .1200 . . 1268 . 1303 . 1356 113 .1355 ! SO. 04-10 . 0578 . 0808 . 0457 100 122 11.4 100 188 287 147 . 0497 . 0440 . 0440 . 0461 .0470 . 0470 . 0470 113 100 100 105 1.07 107 107 204 132 124 130 130 129 127 . 0170 s o 100 = $2.4500 i 100 $14.7058 131 4.1346 ! 169 27.6971 184 I 5.9750 1 244 42.2692 104 3.3144 ! 135 21.6683 107 i | i . j 5.7750 2. 2500 2.2500 2.3125 3.1250 i 3.9000 4.0000 236 92 92 94 128 159 163 j 30.0000 19.3750 | 18. 2000 i 19.1250 ' 19.1875 I 19.0000 i 18.6250 1922. January. Cotton yarns, northern cones, 10/1 Boston. Leather, sole, hemlock, No. 1, Chicago. Year and month. I Average Rela- ! Average price per : tive price per I pound, price, i pound. 1 Steel billets, Bessemer, Pittsburgh. Steel plates, tank, Pittsburgh. 100 i $0.2821 241 ; . 5283 . 5342 282 131 . 3583 100 $25.7892 i 187 ' 40.5385 • 189 56.2596 ! 127 34.3846 j 100 157 218 133 130 , 109 ; " 117 156 • 173 :; 165 153 , . 4000 . 3500 .3400 . 3400 . 3400 .3400 . 3400 142 124 121. 121 121 121 121 169 I 125; 115 ! 112 I 112 ! 112 j 112 ! .3259 ! 147 .3400 121 ; 28.0000 j 109 i S0.2213 i . 5340 [ .6245 : .2904 , 3.3000 I 135 j 18.1500 I Steel rails, open-hearth, Pittsburgh. Rela- Average ; Rela- ; Average j Rela- Average Relative : price per j tive ! price per i tive price per tive price. ! long ton.; price. \ pound, price. long ton. price. . 2S78 . 2411 .2586 . 3446 .3832 .3655 .3391 1913 1919 1920. 1921. January July August September.. October.... November.. December.. 86 | SO. 0148 I ! .0271 i i .0328 i ! .0193 j 123 Worsted yarns, 2-32's crossbred, Philadelphia. Average ! Relaprice per i tive pound. ; price. 100 S30.0000 183 • 49.2642 222 : 53.8269 130 . 45.6538 100 SO. 7767 164 1.6274 179 .1.8250 152 j 1.1792 100 210 235 152 . 0265 . 0185 .0178 .0164 . 0160 . 0152 . 0150 1.79 i 125 ! 120,1 in ; 108 ! 103 ' 101 I 157 157 157 157 151 133 133 1.1500 1.1500 1.1500 1.1500 1.1500 1.1500 1.2500 148 148 148 148 148 148 161 .0150 101 ! 40.0000 133 1. 2774 164 1921. » On Toledo market, average for last six months of 1913. 47.0000 47.0000 i 47.0000 47.0000 I 45.2500 40.0000 40.0000 ! 1922. January. : 43.5000 j 32.2500 ! 29.6000 | 29.0000 | ; 29.0000 I 29.0000 ! : 29.0000 I 324 FEDERAL RESERVE BULLETIN. MARCH, 1922. AVERAGE MONTHLY WHOLESALE PRICES OF COMMODITIES—Continued. I Beef, carcass, good native steers, Chicago. Year and month. I Flour, wheat, , T?in No 7 I| standardt apatents Kip, JS o. 7, ( 1 9 1 g j s i l d a r d New York. war), Minneapolis. Hams, smoked, Chicago. Illuminating oil, 150° fire test, New York. Sugar, granulated, New York. Average Relaprice per i tive gallon, i price. Average ! Relaprice per j tive pound. ! price. Average price per pound. January July August September. October November.. December.. January. 1921. Rela- i Average tive price per price. I barrel. I " " ! Rela- j Average i Relative I price peri tive price, j pound, j price. : | i $0.1295 ! .2333 2304 .1627 1913 1919 .1920 1921 Rela- i Average tive price per price. ! pound. 100 | SO. 1113 180 i .1785 178 I .1198 126 ; .0719 100 ; $4.5837 160 j 11.9982 108 i 12.6750 65 : 8.3264 100 ! $0.1662 j 100 262 ; .3433 ' 207 277 | .3340 !! 201 1821 i! .2678 161 100 163 213 197 SO. 0427 | .0894 i .1267 .0616 ! 235 178 178 178 188 195 195 . 0757 . 0546 .0583 . 0559 .0519 . 0517 .0500 i 100 209 297 144 177 128 137 131 122 121 117 .0480 ! 112 I . 1738 . 1490 .1600 . 1595 . 1644 .1725 .1640 134 115 124 123 127 133 127 . 0669 .0647 . 0703 . 07S9 . 0S13 . 0883 . 0931 60 58 63 71 73 9.6250 8. 9000 8.1200 8. 3188 7. 4250 79 • 7.1700 84 I 6. 8813 210 194 I 177 : 181 ! 162 I 156 j 150 I .2488 .3200 . .3248 ! .2756 " . 2372 .2238 • .2150 150 193 195 166 1.43 135 129 .2900 i .2200 ! .2200 : ! .2200 .2320 i .2400 ! .2400 ' .1538 119 .0963 87 | 153 ' .2210 : 133 ! .2175 i 1922. SO. 1233 ! .2004 i .2629 I .2432 ! i ! i . i 7.0000 MARCH, 325 FEDERAL HESEKVE BULLETIN. 1922. COMPARATIVE WHOLESALE PRICE LEVELS IN PRINCIPAL COUNTRIES. The foreign index numbers published hereIn the following table the all-commodities with are constructed by various foreign sta- index numbers for the whole series of countries tistical offices, and are sent to the Federal appear together to facilitate the study of comReserve Board by cable.a parative price levels: INDEX NUMBERS OF WHOLESALE PRICES (ALL COMMODITIES). j i United States; Bureau of Labor Statistics (315 quotations).2 ! United j States; Federal • Reserve • I Board i (90 i quotai tions).2 1913 1914 1919 1920 1921 100 . Italy; 1 Ger! ChristiI United i France; Prof. GerTJ j Belgium; many; Sweden; j ania, BulBachi i King- ! letinde many; Statis1 maric, ' *>epartSvensk j Norway;. mark- . m o n t o f dom; i laSta- (38 com- Frank; tisches Handels-: 0-kono- Finans! Federal ! tistique ! modifurter Reichstidning I misk j tidende Statis: Keservo I Generaie | ties tics Zeitung (47 I Revue i (33 cornamt until Board (77 com1 quota- :j (93 com- modi- i(130com(38 com1920, 76 "'(98 quota-! 6 7 niodimodimoditions). , modi- • ties). there: ties).* ties) .2 ties).6 after).2 100 ; 145 163 : 154 ; 142 142 • 143 ; ! 141 140 , 138; 1922. 100 ' 100 95 364 624 578 I. i i. i ! 100 101 217 246 182 ! j ; i | 314 I 202 ! 241 i 314 j 201 100 101 357 510 345 177 j 167 i 148 152 ' 152 | 150 ! 149 ! 149 i ! 208 199 . 176 174 172 169 : 168 170 251 I 230 ' 198 I 194 i 191 i 184 i 176 ! 171 ! 244 226 196 195 194 187 177 172 407 377 330 331 344 331 332 326 642 613 520 542 580 599 595 595 1(59 i 314 306 562 ; 16S 169; January... February.. March.."... I | BulCairo; '; Holland; garia; DepartCentral Direcment of Bureau Dr. tion StatisLorenz of Statis(71 com- tics (53 Generaie tics (23 comdela commodimodimodiStaties) .i* ties).!6 tistique. ties). j Sw: 1913 1914 100 1919 1920 1921 195 1921. 100 105 297 282 181 January February July August September... October November December 238 ! 230 179 : 177 ' 181 184 i 182 : 178 " 1922. January February 176 171 161 : 213 197 176 180 180 169 165 165 100 103 1,166 1,940 2,006 2,392 2,135 1,721 1,730 1,758 2,052 2.061 2,155 (17) • : : I j' i ! I i j of the BULLETIN for April, 1921. ! 9 ioo : io o 1,509 i 1,797 i 1,549 ! 1,484 [ 1,473 ! 1,723 i 1,820 1,993 : 2,698 '' 3,283 1,436 1,372 1,425 1,909 2,067 2,460 3,416 3,569 100 , 225 ! | 299 180 I 100 I 181 i 245 j 214 196 164 166 176 186 181 170 260 | 12 100 180 218 167 196 192 159 160 160 156 151 148 216 210 200 197 197 195 o 115 , 322 377 100 294 382 250 344 319 300 297 287 286 276 i j. . !. 211 I 198 182 175 174 172 I ! ! ; : 170 ' 166 . 341 290 253 256 224 202 186 188 260 253 267 250 178 177 182 347 364 368 36S I Calcutta, India; Department of Statistics (75 comrnodties).2 Japan: I B a n k of ; ShangJapan hai; for ! Depart- Tokyo ! m e n t of (56 corn- j Statismodi- j tics. ties) .2 Peru; Department of Statistics (58 commodi-1 ties).* 100 J * 100 ' 281 • 226 .. 166 : 204 181 96 ' 236 I 259 1 200 214 ; 197 : 183 ' 184 ! 188 : 175 . 170 : 166 * 206 195 183 184 1.87 184 180 180 201 195 196 199 207 219 214 209 178 205 j 13 100 . ; i i 109 ' 100 104 220 238 205 104 107 109 112 111 110 109 110 221. 215 201 205 205 203 195 190 20 100 ! 106 | ! 2,095 146 168 190 13 End of July, 1914= 100. 1 As of Jan. 1. * Prices as of first of the month. 1914= 100. Based upon prices of 52 commodities during 1920; 53 during 1921. 1913=100. " Jan. 1,1913-July 31,1914=100. 18 Average annual expenditure, 1913=100. is 1914= 100. so September, 1919=100. *! Average for month until September, 1921; thereafter prices as of 15th of month. 22 Average of last half of month. 23 April, 1914=100. 15 18 Average for the month. End of month. * Beginning of month, but not always the first. »Middle of month. • End of year and end of month. 7 First of month. » July 1,1913, to June 30,1914=100. •Middle of 1914=-100. w Dec. 31,1913-June 30,1914=100. " July 1,1912-June 30,1914=100. "July, 1914=100. a See following page for issues of BULLETIN containing descriptions of the methods used in constructing these indexes. 11 i 3,467 3,814; 4,713 • 8 100 104 178 212 ! B 100 116 330 347 211 1,479 j 1,915 | AusSouth tralian ComAfrica; monDutch NewOffice of East Census wealth; Zealand; and Sta- Bureau Depart- Indies; of Cen- ment of Statististics sus and tical Statis(187 Bureau.6 tics. com- Statistics (92 commodimodities). ties).' 1 Index numbers for 1920 and thereafter based upon prices of 76 commodities. Computations arrived at by the method described on p. 465 a 3 ! i I , : i 100 i 100 i 212 , 243 i 153; 206 1921. ."January... February.. July....".. August September October... November. December. | United Kingdom; Board of Trade (150 commodities). j Canada; ' Depart| merit of 1 Labor (272 | quotations).5 ' 326 MARCH, FEDERAL RESERVE BULLETIN. The index number for the Dutch East Indies, which appears in this issue of the BULLETIN for the first time, is compiled by the Statistical Bureau of the Department of Agriculture, Industry, and Commerce in Buitenzorg, and is cabled each month by the American consul at Batavia, Java. The index is constructed on the basis of average prices for the five-year period 1901-1905, but as published in the BULLETIN it has been recomputed on the basis of prices of January 1, 1914, for purposes of comparison. The commodities used are classified under five headings—I, Grains and Meats; II, Other Foodstuffs; III, Textiles; TV, Minerals; V, Miscellaneous (oil, wood, rubber, etc.). The "all commodities" index number, which is the • only figure published in the BULLETIN, is a weighted arithmetic average of these group indexes. The statistical section of the Belgian Ministry of Labor has constructed a monthly index of wholesale prices in Belgium beginning with August, 1921. The index numbers are calculated according to the "chain system," i. e., the base is shifted each month so that prices of any one month are expressed in terms of the preceding month. For purposes of comparison, however, the index numbers published in the BULLETIN have been recomputed on a permanent basis of prices in April, 1914, as 100. The index consists of 130 commodities of both domestic and foreign origin, represented by more than 200 price quotations. The commodities are divided into 16 groups and weighted according to the number of articles included under, each head. Where several quotations aie given for a certain commodity, a simple arithmetic average of these quotations is taken. Both the group indexes and the general index are geometric averages. The prices are furnished by well-known industrial and commercial organizations and apply to the last half of each month only. The BULLETIN for January, 1920, contains a description of the Statist index for England, and the French, Australian, Japanese, and Canadian indexes. A description of the method used in the construction of the Swedish index number appeared in the BULLETIN for February, 1921, the new Italian index number was discussed in the April, 1921, issue of the BULLETIN, and the method used by the Frankfurter Zeitung in the case of the German index number was described in the BULLETINS of February and March, 1921. Complete information regarding the computation of the index of the United States Bureau of Labor Statistics appears in the publications of that bureau, and a description of the index number of the Federal Reserve Board may be found in the BULLETIN for May, 1920. The Danish index has been constructed only recently, is based upon the prices of 33 commodities, and is roughly weighted according to consumption. The new British index number, compiled by the Board of Trade, was described in the March, 1921, issue of the BULLETIN. The BULLETIN for December, 1921, contains a description of the index published by the Federal Statistical Bureau for Germany, and the indexes for Switzerland, Holland, Finland, Norway, Bulgaria, Cairo, the Union of South Africa, the Dominion of New Zealand, and Peru. Lack of space prevents the publication of group index numbers for these countries, but they can be obtained at any time upon request. In the case of the two American index numbers, 1913 is used as the basis in the original computations. In most other cases in which 1913 appears as the basis for the computation, the index numbers have been shifted from their original bases. The computations in these cases are, therefore, only approximately correct. In certain cases July, 1914, or the year immediately preceding that, is used as the base. Since the figures are for the most part received by cable, the latest ones are subject to revision. In certain cases the index numbers for the war years were published in various issues of the BULLETIN in 1920. GROUP INDEX NUMBERS—UNITED STATES—BUREAU OF LABOR STATISTICS. [1913= 10Q.] Date. Farm products. Food, etc. Fuel and lighting. Cloths arid clothing. |a ddnigs " 1913.. 1919.. 1920.. 192J.. .100 234 218 120 100 210 239 143 100 261 302 183 1921. January July August September... October November... December... 136 115 118 322 119 1L4 113 162 134 152 J40 142 142 139 208 179 179 187 190 186 185 1922. January. 116 134 183 - «IH at All commodities. 100 212 243 153 183 i MARCH, FEDERAL RESERVE 1922. 327 BULLETIN. ALL COMMODITIES GROUP INDEX NUMBERS—UNITED KINGDOM—BOARD OF TRADE. [1913=100.] j "'•• i a Meat lid fish. Other foods. Total food. Iron and steel. Other mot als and minerals. Cotton. . Other textiles. Other Total All comarticles. not food. modities. i .1920 average 1921 average January July..: August September October November December Jannaiy 278 j 272 214 j 21.0 406 243 252 ISO 480 193 362 174 274 197 340 198 314 202 221 : 172 160 157 153 152 180 176 213 225 199 1S8 220 161 159 163 170 169 167 221 194 189 190 190 183 177 248 192 186 186 185 176 170 251 198 194 187 359 229 220 207 194 181 172 .185 181. 257 210 210 200 183 177 173 213 .185 245 215 21.0 201 193 182 m 166 149 18! ' no 174 167 167 273 j 195 • 263 222 245 i 202 ! 204 197 170 157 • 1.53 285 214 217 201 ! 147 ' 170 192 L 1922. j j i j • 195 ; 179 19.1. 184 176 171 GROUP INDEX NUMBERS—FRANCE—GENERAL STATISTICAL BUREAU. [1913=100.1 Jiaw ' l Ani- ; ^ ^ . c o f f e c | j Foods: Min- i Tex-. Smi- mate-• i malr ' i / ^ T i and ; (20). j erals.! tiles. \ dries rials i i food (25). , ities. |! J)al.e. cX; Foodss Minerals. a n d ' (20). cocoa. foocls oods f - -..!. 1919 average.: 392 1920average.! 503 1921 average. : 380 313 :: 253 ! 336 ! 272 i 4-14 405 427 422 i 459 ! 419 i 737 524 330 | 343 355 i 275 I 355 374 1921. February.... July ; August September.. 373 !: 357 '< 1921 550 510 : October : 345 I 305 3 3 8 •• 345 i; N o v e m b e r . . . 331. ! 306 ; ;' D e c e m b e r . . . : 324 I 303 317 : 364 | 337 ' 311 j 378 301 312 338 452 ! 353 j 371 • 373 i 338 393 352 389 378 , 300 j 398 366 :! 253 290 355 215 321 352 ' 253 388 422 343 356 370 i i j | Raw materials (25). Textiles. All commodities. 305 324 300 262 277 391 388 365 i 338 362 J 341 364 . 337 331 332 326 306 318 377 !! 1922. :I i 330 i1. January 309 j 289 331 :,! February....^ 303 , 288 344 i ' ' 323 321 313 302 301 258 242 363 345 350 : 324 341 . 3.1.1 314 306 GROUP INDEX NUMBERS—ITALY—RfCCARDO BACH1. . i '. 1921. January July . August September. . : 107 i 100 .i 107 .! 114 116 ' 121 109 113 125 i i : ; [1920 = 100.] Other • AliuAll Sun- comTex- and tiles. met- mate- table dries. modprodities. als. rials. ucts. ! Vege- Ani- , r i ;v table mal 11C ! foods. foods. 1921 average J 107 . 77 98 65 68 65 . ... 67 77 54 62 75 88 60 60 59 101 113 95 92 91 96 110 123 92 96 102 107 87 87 93 Yege-, Anitablo; mal ' foods J foods. | 1921. October November 103 December.... 83 87 1922. 93 January i 93 116 ! 114 ; 115 i Minerals and met- SET I 129 i 126 i 121 75 76 74. 76 75 79 64 73 68 i lild Other All vege- Sun- comate- table dries. modprodities. 91 62 65 QQ no 89 114 114 114 94 96 95 95 92 90 94 94 • i i 109 j . 112 | i 1 111 GROUP INDEX NUMBERS—GERMANY—FRANKFURTER ZEITUNG. 1 [Middle of 1914=100.] j Agricul- TexMiner- Miscel; tural tiles, laneous. i prod- leather, i als. I UCtS. 1920 average 1921 average 1921. J3eginning of— March July August September October ! 1,230 ; 1,693 i 1,204 : 1,274 : 1,784 1,851 , 1,995 i Latest revised figures. 3,160 2,957 2,343 2,153 2,289 2,616 3,270 1,747 1,932 1,552 1,594 1,636 1.748 2^ 112 1,432 1,768 1,517 1,592 1,550 1,608 2,567 : Agricul- Tex- . ! tural Misceltiles, i Miner- laneous. prodals. ! ucts. Jcather.i All commodities. 1,509 1,797 1,419 1,473 1,723 1,820 1,993 AH commodities. 1921. Beginning of— November.. Dc( ember.. 2,78;; ??2Z '567 2,937 ! 3,580 | 2,092 2,458 2,60S 3,283 1922. Beginning of— January February... March 3,295 3,576 4,745 6,567 i 6,975 | 7,357 I 3,636 4,084 5,105 3,033 3,450 4,083 3,467 3,814 4,713 328 FEDERAL RESERVE BULLETIN. MAKCH, 1922. GROUP INDEX NUMBERS—GERMANY—FEDERAL STATISTICAL BUREAU. [1913 prices^ 100.] Goods produced (16 commodities). G oods imported (22 commodities). ! 15)20 average 1921 average, December, 1920.. 1,253 | 2*005 j 1,3(19 1,479 ji August. 1 915 September October 1,437 November Decoraber 1,425 2, 009 ; 1,323 1921. July. G oods produced (16 commodities). All commodities (38 commodities). 1.70K . 1,909 2.067 2,400 3,1l(i 3,569 1,888 I 1,913 1.952 2, 235 2,967 ; All commodities (38 commodities.) Ci oods imported (22 commodities). 2,043 ! 3,585 ! 5,002 : !. i GROUP INDEX NUMBERS—SWEDEN—SVENSK HANDELSTIDNING. [July 1,1.9L3-June30, 1914=100.] i Animal foods. Raw materials for agriculture. 100 261 262 210 .100 409 290 220 100 340 312 227 23 L 236 217 183 167 1.61 156 241 227 230 208 198 .196 186 2-18 216 214 207 200 197 202 168 i 170 ! 173 159 202 ! 170 i Vegetable foods. Date. 1913-14. 191.9 1920.... 1921.... Metals. Coal. i i Building j mate! rials. Hides and Textiles. : leather. j All commodities. Oils. 100 ! 286 I 371 ! 2-13 i 100 308 675 310 100 21J 2.15 107 100 i 100 324 j 141 : 294 228 100 330 347 211. 204 149 130 .130 130 133 .134 319 j .199 i L98 ! 191 j 21.1 I 239 I 243 ! I 511 ! 197 183 ! 178 169 ..1 18 189 108 LI2 107 108 119 .108 147 133 132 166 161 .149 31S 191 191. 191 187 179 .179 250 21.1. .198 182 175 174 172 131 ' 130 , 100 804 ! 1,007 I 285 i 228 i 226 I 189 178 104 97 144 | 1.38: 179 179 170 1(56 KM) • 258 ' 278 159 : .1921. February.. July....:... August September. October November. December.. January.. .February. 362 ; 315 \ 250 i 223 ! 202 i . 194 ! 197 i no 1.922 179 I 186 ! GROUP INDEX NUMBERS—CHRISTIANIA, NORWAY—OKONOMISK REVUE. | Dee. 31, 1913-Junc 30, 1914=100.] Fuel. Feed- :• Date. i and fer- i I I Animal | ; foods. I Coal ! tilixcrs. i and coke. Petro- i leum i and i benzine.. Iron. I BuildMetals. | ing mai tcrials. Textiles. Hides and leather. I ****• All commodities. r End of— 1914.. 1919.. 1920.. 1921.. 115 329 352 203 130 281 385 279 1921. February July....; August September October November December 294 J01 296 V)2 297 273 263 24-1 I : i I i 108 j 277 ! 340 i 233 ' 15L 767 647 104 162 407 276 115 442 : 482 ! 278 128 187 200 183 324 408 360 303 303 282 279 292 254 260 254 251 233 233 358 388 371 333 333 316 364 303 297 297 297 276 276 310 307 307 339 335 319 278 167 190 190 190 197 184 183 256 I 250 ! 226 | 224 | 279 279 276 256 263 183 ! 165 i I j j i 105 356 I 402 i 320 I 158 284 255 219 ! .1.03 277 321. 183 10.1. ; 322 472 i 33S | 11.5 322 377 269 362 309 305 299 297 293 291 352 319 315 309 315 320 320 21.2 j 197 i 197 I 21.0 i 228 i 219 | 219 i 2S9 | 276 i 262 ! 227 • 227 ! 227 ! 183 ! 472 i 392 ' 319 300 297 287 286 276 269 279 274 316 310 219 : 219: 183 i 1S3 ! 332 i 107 358 416 291 i 392 • 377 ; 350 ; 338 : 338 ' 1922. January February 236 j 327 • - 260 253 MAUCJF, 329 FEDERAL RESERVE BULLETIN". 1922. GROUP INDEX NUMBERS—AUSTRALIAN COMMONWEALTH—BUREAU OF CENSUS AND STATISTICS. [July, 1914=100.] Textiles, leather, etc. ' Metals a n d i coal. Date. Agricultural products. Groceries and tobacco. Dairy products. Building Meat. ; materials. Chemicals, j All commodities. I 100 100 100 100 100 100 100 100 100 193 209 198 217 243 125 186 229 I6f> 137 184 166 147 186 1.92 145 ' 201 , 133 : 261 295 249 282 ' 277 i 225 ' ISO 218 167 215 145 111 116 143 147 138 134 197 158 160 159 157 155 149 208 166 164 146 129 123 122 1.97 188 190 187 189 188 187 191. i 119 120 110 98 '87 ' 183 93 j 279 238 231 226 210 198 192 24.1 220 224 220 220 208 205 • ' | 196 159 160 160 156 151 148 1S5 i July, 1914 1919 1920 L921 L33 14.0 US 1SS 92 190 200 \ 146 Building m a - Fuel and terials, lighting. lumber. Drugs and chemicals. 1921. January Julv ' . \.ugust September October November December 195 194 193 193 190 ! ! i 1922. Fanuarv GROUP INDEX NUMBERS—CANADA—DEPARTMENT OF LABOR.1 [1913=100.] I Grains • Animals Dairy i and j and I fodder, j meats. ucts. Date. 1913 1919 1920 1921 1921. February July....." August September October November December I ! ! 1922. | ] January February 1 100 171 268 211 163 157 182 170 171 176 188 205 174 173 170 162 158 159 20. 179 181 183 185 179 176 126 106 101 100 100 100 100 239 217 192 189 190 180 180 231 207 206 206 210 211 211 186 204 155 155 176 174 99 97 180 179 206 204 1.57 171 143 143 133 134 113 122 1S5 333 142 141 149 158 170 129 140 149 141 100 192 204 ! 133 ; 145 : ; 100 213 192 110 100 201 255 1. 81 100 285 303 189 100 222 258 100 199 198 119 100 227 263 150 I ...! vegetables. 100 206 261 172 I I I i i 171. 146 i 152 144 j 127 125 | 131 : ; ! , ! ! Hides, Textiles.! leather, • I etc. and I : All I comi modiI ties. ioo; 205 ! 204 2.1.S 18$ ! 175 176 171 169 165 166 ! j ' I ' ; j 163 I 164 100 217 246 182 199 176 174 172 169 168 170 168 169 Unimportant groups omitted. GROUP INDEX NUMBERS—CALCUTTA, INDIA—DEPARTMENT OF STATISTICS. [End of July, 1914=100.] Date. Cotton; Build-! Manu-' Hides manu-i Raw ing I fac- •» and mate-! tured , tals. skins. fac- |cotton, tures. rials, jartioles All Tea. Sugar. foods i End of July, 1914.. 1920 average 1921 average 100 j 100 138 I 231 j 146 ' 242 j 100 238 237 100 147 108 100 i 354 j 306 100 153 143 149 . 100 i 162 i 1.12; 100 128 105 1921. January July../. August September.. October November.. December... 158; 149 , 143 ! 143 ; 141 j 141 L.V j 238 237 ' 242 , 247 251 , 946 : 235 : 247 245 241 214 214 213 219 81 116 121 120 122 116 128 324 316 301 302 310 1.07 136 150 217 193 166 176 104 102 107 127 112 108 111 149 ; 147 " , 135: 147 ! 148 ; 150 • 150 ! 116 115 116 115 106 104 103 1922. January 132 ; 220 236 | 2 2 0 126 275 165 110 : 156 I 105 i 100 100 104 83 .1.08 ! i ' I I 100 173 135 100 78 100 100 407 270 85 80 85 102 88 77 86 130 157 150 145 122 123 124 77 92 107 116 124 151 152 85 132 161 ioo ! com modi. ties. 166 I 160 ! 100 100 154 ! 184 1-15 , 157 100 204 18.1 314 247 236 219 205 203 194 139 I 173 182 182 184 178 180 151 153 157 154 143 147 139 162 170 172 166 164 169 178 183 184 187 184 180 180 225 177 139 150 178 i ' ! ; i 330 FEDERAL RESERVE BULLETIN. MARCH, COMPARATIVE RETAIL PRICES IN PRINCIPAL COUNTRIES. In the following table are presented statistics j showing the trend of retail prices and the cost j of living in the United States and important' European countries: 1 \ 1 Three of these index numbers—those for the United Kingdom, Paris, and Sweden.—are constructed on the basis of prices in July, 1914= 100. In the case of the United States, the original base, that of'the year 1913, has been shifted to the July, 1914, base. The German index uses the year ending July, 1914, as a base. The American index number, constructed by the Bureau of Labor Statistics, was based upon the retail prices of 22 articles of food, weighted according to family consumption, 'until January, 1921, when it was increased to 43 articles reported by dealers in 51 important cities. The method of weighting continues the same, although the actual "weight" j applied has been changed. The .British index number or the cost of living constructed by the Ministrv of Labor consists of I he retail prices not only of foodstuffs but i of other articles as well. Retail clothing prices, reins, and the cost of fuel, lighting, and miscellaneous household items are also taken into consideration. The index number is weighted according to the importance of the items in the budgets of working-class families. The retail price index for Paris, compiled by the French General Statistical Office, consists of retail prices of 13 different commodities, weighted according to the average annual consumption of a workingman's family of four persons. Eleven of the commodities included in this index are foods, and the other two arc kerosene and alcohol. The Swedish index number consists of the retail prices of foodstuffs, \ fuel, and lighting and is based upon the prices of 51 articles in 44 towns i (in 1920, 50 articles in 49 towns), weighted according to the budget of • a workingman's family which before the war had a yearly income of i 2,000 kroner. The German index expresses upon a percentage basis figures compiled by Dr. R. R. Kuczynski of the Statistical Office of Berlin-Schoneberg. Dr. Kuczynski bases his calculations upon the cost of living per week of a family of four in. Greater Berlin. The Italian retail price index « . m V . . I 11 •*-<*. i > 1 T l 1 « • - 1 . 1 . .a RETAIL PRICES IN THE UNITED STATES, PARIS, AND SWEDEN; COST OF LIVING IN UNITED KINGDOM AND BERLIN. [July, 1914=100.] Sweden, retail prices. 1919 1920 1921 1921. January... February.. July August September. 1 October... November. : December.; l 1922. January...; Februarv..; 182 i Berlin, cost of living. 3 Italv. retail prices. 4 199 i ISO j 216 : 249 . 226 260 371 337 298 237 1,080 1,236 454 109 :I55 145 152 ]50 150 149 : 147 | 265 251 219 222 220 210 203 199 410 3S2 306 317 329 | 331 326 | 323 I 283 262 232 234 228 218 211 202 1,111 1,087 1,125 1,177 1,212 1,340 1,767 1,934 542 540 501 534 542 .139; 189 j 192 I 188; 319 307 ! ]90 " • : • . ' : 321 1 2 Average for the m o n t h . Beginning of month. a August. 1913-July, 1914=100. 41913=100. for the most important cities, computed by the Kalian Ministry of Labor, consists of retail prices of 21 commodities. Twenty of the commodities included are foods and the 21st. is charcoal. FOREIGN TRADE—UNITED KINGDOM, FRANCE, ITALY, SWEDEN, NORWAY, JAPAN, AND GERMANY. Sweden. Tn France and Italy the value of foreign trade is estimated In the following table ar< not in terms of current prices but in terms of those of some earlier, dated showing the monthly value of the foreign trade usually the preceding year. of of a group of important European countries of None andthe figures presented ofbelow include the import or export, gold silver. In the case England and France, group figures 1 are given as well as total values, while in the case of the other countries and Japan. total values only are presented. This does not mean that group figures are not obtainable, merely that they are either delayed in publication 1 Currencies have not been converted to a common unit, nor are or appear not to be of such general interest as the French and English methods of valuation the same in all countries. Tn England imports ; material. arc given current c. i. f. values in England; exports and reexports, \ Japanese figures for recent months are received by cable and subject current f. o. b. values. The same method is followed in Japan and ; to revision. FOREIGN TRADE OF THE UNITED KINGDOM. Exports. Imports. In thousands of pounds sterling. In thousands of pounds sterling. In Articles i Miscel- | • thousands rials and wholly | laneous,! or . articles mainly includ- | Total. i of tons. ing manuparcel j factured. post, j iactured. I Raw ai id Monthly average: 1913. .... 1919 1920 1921 1921. January July...".... August September October November. December. 1922. January February Reexports. ! Raw Articles! MiscelmateFood, I rials and wholly laneous, drink, ; articles or ! includI mainly j ing manu- ! parcel Ifactured. factured.j post. Total. In I thou- I In thou- san f ds i sands sands 1 of tons. P of tons. ling. I ! . | 23,485 50,505 59,196 22,598 16,134 24,663 37,787 20,421 358 254 268 64,061 4,669 135,513 161,387 3,795 90,557 i 3,263 2,716 2,814 4,245 3,122 , 5,825 I 9,274 i 12,126 i 5,297 34,281 53,457 93,312 j 49,055 j 949 43,770 : 7,650 9,131 1,008 ! 66,553 ; 13,729 1,523 i 111,206 I 3,292 18,563 1,126 j 58,000 ! 2,748 8,921 139 118 49,149 i 42,090 i 50,584 | \ 48,410 44,475 ! 41,246 i 39,063 i 37,005 20,232 19,589 20,465 21,256 29,946 27,792 30,167 18,005 18,194 17,905 18,691 17,913 18,291 j 420 431 214 338 320 154 165 117,041 80,757 88,581 87,119 84,742 89,259 85,312 3,852 " 7,668 2,702 i 2,775 3,124 ,' 7,058 3,300 ! 6,997 7,359 3,466 3,586 ; 7,046 3,187 ; 7,446 79,746 i 36,705 ; 39,936 ! 44,009 i 50,328 j 51,094 : 47,364 : 1,491 990 1,228 942 1,113 1,169 1,378 92,756 2,558 43,172 11,350 3,747 51,346 4,128 55,248 4,297 62,265 co one i• 4; 541 62,895 ' 59,375 i 5,238 9,955 9,362 9,998 8,595 10,386 9,823 9,204 154 116 159 139 107 I 33,972 j 24,565 I ! 17,710 j 241 2,861 51,824 1,429 63,147 i. 58,335 i. 8,459 10,174 24,184 59,927 63,817 47,271 I 1 Includes reexports. i i 3,383 ! 4,050 3,389 3,515 j 3,470 ! 3,343 i 3,088 69,375 j . 7,032 152 MARCH, 331 FEDERAL KKSEJiVE BULLETIN. 1922. FOREIGN TRADE OF FRANCE.1 Exports. Imports. In thousands of francs. ! Monthly average: I 19132 1 19193 1020 8 1921 « • ! • 1921.3 .)ami:.!ry J uly...' .Raw matcrials. ! Manufae| t ured. • articles. : 412,144 : 151,465 892; 040 1,229,435 j 718)179 ! 1.400,046 j 517,158 i 1,033,170 Total. ! T 0 l l Sf !j | Food. ™f l 1 138, 169 861,797 832,187 412,045 701,778 2.983,272 2,950,413 L962,373 3,685 ; 69,908 3,204 99,201 4)211 | 184', 277 3,165 ! 161.', 03 L • I ! : inate- ! ^ S l " " rials. 154,841. 203,691 397,677 463,21.9 Total. . articles. in thouIsands of j metric I tons. 301.420 47,182 573,351 615)630 ! 71,44-1 ! 989.966 1,187,742 99,867 .1, S69'. 583 1.067.413 : 104,430 1,796,092 1. 840 ' 464 1,071 1,333 ; ' : August September October November December Food. 1 In thousands of francs. In ' ihou- : sands of; ; 346, 703 434,001 555.545 091 ',972 717,091 504.012 754,671 1.10L.207 . 534,498 704! 069 | 331,047 855;697 i 320;052 329,494 1,204,213 i. L9J, 860 j 31.8; 000 ' 323'. 593 1,446.125 : 1,856! 148 | 543.445 982,468 3, 702 . 469,1.17 2, 164 I 731,294 j 2, 593 1 225,679 3^ 993 220,051. 2; 809 333,730 ! 5, 161 : 154.264 5. .197 . 188.546 123,303 112,654 .146,467 1.32, 424 .157. 180 259,605 i 436,069 • 1,142, 925, 439,534 445.312 ! ].084. 444'. 89 L ; .1)087; 482; 3 7 6 •• .1,041; 478,875 : ' 992; 549.495 : 1.193; .115,605 1,882,618 74,350 j .1.563,055 82,933 ! 1)725,092 8! '- — 95)852 1774; 653 59.472 103,078 120,1543 l'.74<654 180,059 2) 1S2,320 1,11.7 1,194 1,035 1.172 1)25J I.51.5 2, 507 1922. January.. 1 Not: including gold, silver, or the reexport trsade. Latest figures subject to revision. - Calculated in 1913 value units. . Calculated in i919 value units. French foreign trade figures arc originally recorded in quantity units only, and the value of the trade is calculated by applying official value units to the quantities imported and exported. Normally the monthly statements of trade appear computed at the rates of the year previous, and only at (;hc end of the year is the trade evaluated at the prices prevailing during that year. 'Because ofihe disturbed price conditions in France during the past two years. L919 price units are being applied to the 1921 trade. 4 Calculated in 1920 value units. 3 FOREIGN TRADE OF ITALY, SWEDEN, NORWAY, AND JAPAN.1 Italy. (In millions of 1 Sweden. (In millions of kronor.) •lire.) Japan, (in millions of yen.) Norway. (In millions of kronor.) Imports. Exports. Imports. Exports. Imports. Exports. Imports. EXL or Is. — - Monthly average: J913 304 2 1,322 ->06 .1.921. 2 3 44.1 587 659 683 ; 650 February. »557 » 981 . 8 3 December... 1922. January Fcbruarv 1 Latest; figures subject to revision. (^ 46 33 61 J31 191 91 21 " > 65 104 63 J Si 1 253 128 195 135 122 116 98 103 124 131 134 148 6S 56 6L 72 105 119 110 132 101 95 112 91 89 94 113 .105 99 103 108 61 71 53 175 162 104 ; January .July August September October November 9ii 281 !06 77 210 1 3^ r ) 1919 1920 1921 3 •« % 2 • 3 1,101 1,125 3 ; 3 718 i 126 176 82 153 82 65 82 1J6 129 129 130 75 77 99 106 96 154 160 112 .121 145 176 196 101 i 2 Based on 19L9 values. 3 Based 011 actual current prices. S7 332 FEDERAL RESERVE BULLETIN. M A R C H , 101*2. FOREIGN TRADE OF GERMANY. Imports.1 Exports.2 j Merchandise. j Gold and ; silver (in j thousands In millions In thouof marks). of marks. sands of metric tons. Merchandise. Gold and silver (in thousands In thouof marks). In millions sands of of marks. metric tons. Monthly average: 927 17,756 ! 9,910 7,572 9,382 10,642 13,814 12,273 i 13,702 : 1,925 2,411 2,533 3,005 2,535 2,086 2.31.0 8,450 17,773 34,901 6,068 1,570 2,232 12,800 | 1913 1920.. 19213. 841 i 5,776 | 8,295 ! 6, .146 1,657 1,715 I July ; August September. October... November. December. 8,376 35,765 26,674 60,693 5,312 4,922 January4 37, 567 13, 514 26, 832 30',013 44, 073 86, 227 6,175 6,670 7,492 9,681 11,887 14,468 1,55S 1,828 1,871 1,973 1.908 1,930 14,500 2,030 1 2 3 Not including philanthropic gifts. Not including deliveries on reparations account. Average for 8 months. Figures covering first 4 months of 1921 are not available. * Subject to revision. INDEXES OF INDUSTRIAL ACTIVITY. ENGLAND. Production (long tons, 000 omitted). Railways! Iron and Cotton nage under net ton steel | manuCoal construcmiles | maim- j (long tion (gross (000.000 i factures I factures tons, 000 tons). omitted). | omitted). Coal. 19.1.3, average 1920, average 1921, average 1921. January 23,953 : 19,108 : 13,696 I I 21,805 I ! 215,214 16,589 : September October November December ! 1922. January : 2 2 16,517 • 21,090 17,875 22,594 642 10 94 158 236 272 275 I 17,693 ' 1 Average of 4 quarterly estimates. 2 Five weeks. 12,002,699 I 13,603,131 ! 13,312,983 I 646 OW4 £•00 j 493 373 , ' 117 434 429 405 444 381 137 321 322 304 330 292 i 1,546 ; 2 July-/August ; i 855 670 218; : , 1.268 1,310 1,194 1,060 1,123 1,216 1,271 ! | 3 3 283,000 ! I & 2,640,000 328 3 4 Work suspended on all but 2,094,000 tons. End of month. 16.2 6 Work suspended on all b u t 1,918,319 tons, e Yards. 333 FEDERAL RESERVE BULLETIN. MARCH, 1922. FRANCE. Pig iron production. Coal. Crudel steel proProduction. duced. Stocks at mines.1 Raw cotton imCotton ported for for con- stocks at Havre.i consump- sumption. tion. Metric tons. Thousands of bales of 50 kilograms. 1,558 2,005 1,472 27,428 19,577 16,660 274 225 109 629 390 200 3,685 j 4,211 I 3,105 j 1,840 1,071 1,333 3,022 20,671 1,738 000 1,065 1,874 1,301 3,291 2,895 20,393 6,539 10,700 11,769 25,757 29,059 30,835 188 131 132 131 181 .192 208 161. 51 202 201 385 277 382 ! I 3,702 I 2,164 2,593 i 3,993 '. 2,809 5,101 ! 5,197 i 1,117 1,194 1,035 1,172 1,251 1,515 2,507 34, 758 10, 616 9 706 7 480 5,348 3,730 4,175 Thousands of metric tons. 1913, average 1920, average 11)21, average I * 434 j » 391 i 286 1 254 ; 280 255 | I 293 208 ! 267 223 i 255 232 : 244 230 • 250 200 | 295 } 277 ! 301 j 302 1921. January July...*. August September October November December 3,338 2,025 279 2,352 2,280 2,403 2,432 2,524 879 256 1,353 1,476 1,560 Raw silk imported Total ! Total for con- imports., exports, j ^ sumpemployed tion. i receiving ^municipal Thou- ! Thou- || aid in 2 Metric sands of i sands of i Pans. tons. metric ! metric I tons. I tons. | 1922. January. 188 T 4,058 1 End of month. s End of month. These figures have been substituted as an index to unemployment conditions in France because the basis on which the figures previously published were calculated seemed to be changed from time to time. a Does not include Lorraine. GERMANY.* Production (in 000s of metric tons). :. L i g - Coal. i nite. I Imports (in12 metric tons). Iron ore.3 Exports (in metric tons).2 Cotton.< Iron and iron manufactures.5 and dyestuffs. Coal. ' Ship arrivals in Hamburg. = Nurnber of ; ships. Tonnage (net registered tons; 000s omitted). Unemployment. Per cent of trade'. union i unem! ploy; ment. I 1913, average 1920, average 1921, average January July August September October November December 1921. j i j | j 14,425 10,945 11,351 12,009' 10 731 ! ll,727i j 11,607, 11,977! J 11,708; I 11,923! 2,7211 2,098! 2,327j 7,269 212,163-1, 224,951 9,323j 49,290 ! 537^ 535 10,251 200,2641 619,194 43,424 12,490 30,894 541,439 145,883 203,993 ,881,126' ., 812 2, 2,350 2,218 2,247 2,278 2,396 2,344 2,420 10,0711. .1. 10,0651 155,2001 493,434 35,176 10,606! 278,661 356; 397i 52,433 10,359! 262,915 564,8271 28,766 10,567i 273,490 919,822J 29,739 10,479! 191,932 937,268; 27,242 11,029. 97,499 790.81V 28,313 177,773; 240,071! 225,331: 216,115 23-1,249; 216,2641 7,353 453,173: 9,618 613,739: 10,156 649,158 10,255 570,048 9,953 569,057: 9,212 640,877!. 008,749; 518,9371 1,250 407 1,182i 525 809 942 957 915 838 055! 8881 95ol 1, OI81 1,047: 1922. Latest figures subject to revision. Import and export figures for the first four months of 1921 are not available. Includes manganese ore. * Includes linters. * Not including machinery. 2.9.. 3.8! January.. 1 3 8 i NumI ber of I unem! ployed : persons j receiving State aid (000s omitted). 1921 averages are based on eight months. 88i; 366 4.5 2.51 2. 410 314 267 232 185 152 1.2: 1.4! 384 FEDERAL RESERVE BULLETIN. FOREIGN TRADE INDEX. There are presented below the usual indexes designed to reflect the movements in foreign trade of the United States, with the fluctuations due to price changes eliminated. The commodities chosen for these indexes are those for which prices are compiled by the Federal .Reserve Board in the preparation of its international price index.1 The export index for January increased slightly, due to substantial gains in the volume of exports of producers' goods and consumers' goods. In the group of producers7 commodities, exports of gasoline and copper wire increased considerably, while most of the other commodities showed some reduction in shipments. The increase in volume of consumers' i The list includes 27 of the most important imports the value of which in 1913 formed 49.3 per cent of the total import values, and 29 of the most important exports the value of which in 1913 formed 56.3 per cent of the total export values. The classification of the original list of commodities used was given in the July, 192G, BULLETIN. The classification of 11 additional commodities of imports was given in the April, 1921, BULLETIN, and 2 additional commodities in the November, 1921, BULLETIN. MARCH, 1922. goods was caused by pronouned increases in exports of sugar, illuminating oil, flour, and pork products. The outstanding movement among the raw materials was the decline in exports of cotton, which were smaller than in any month since April, 1921. Exports of corn increased 149 per cent during January and were larger than in any month since the war. The volume of imports of the 27 selected commodities showed a moderate decline, in spite of an increase in imports of producers' goods. This increase in importation of producers' goods was due primarily to the imports of sugar, which were larger than in any month since April, 1921. In the raw material group, imports of raw silk, lumber, cotton, and refined copper declined materially, which was partly counterbalanced by substantial increases in imports of wool and tobacco. The decline in the volume of consumers' goods imported was due to a curtailment in the imports of coffee, tea, bananas, and oilive oil. Imports of bananas were smaller than in anv month since February, 1921. INDEX OF VALUE OF FOREIGN TRADE IN SELECTED COMMODITIES AT 1913 PRICES. [Monthly average values, 1913=100.] Exports. Imports. Raw mate- Producers'; Consumers'! Total (29 Raw mate- Producers' | Consumers' Total (27 goods (12 goods (5 ; goods (10 ! goods (7 rials rials comcom(10 comcomi comcomj com(12 commodities). moditie s). i modities).; modities). modities). modities). I modities). • modities). 100.0 88.9 92.2 103.1 1913—Year 1919—Year 1920—Year 1921—Year January February March April May June July August September October November December 1921. 100.0 154.7 142.5 95.8 100.0 188.5 138.0 126.1 100.0 118.6 107.7 107.9 100.0 157.5 135.8 113.6 100.0 '• 193.0 I 227.4 162.8 100.0 147.5 166.7 141.4 , 100.0 168.4 168.8 135.6 105.2 91.0 78.2 76.6 97.7 107.9 111.6 142.7 115.7 121.7 95.1 187.9 ! 141.0 i 104.4 i 102.7 I 81.8 ! 74.4 | 68.3 ! 68.1 I 79.1 ! 83.5 I •83.7 '! 74.1 i 126.0 116.4 122.4 122.5 112.8 135.1 131.8 164.1 147.5 119.2 108.6 106.5 117.6 101.6 91.1 89.9 100.0 111.3 112.5 140.9 119.9 117.6 97.3 95.0 74.5 118.2 160.7 153.4 198.7 94.5 99.3 116.7 102.8 96.2 115.1 133.0 130.8 143.5 : 177.5 177.7 150.2 : 152.5 126.5 165.0 137.8 173.5 199.5 218.9 123.9 135.5 178.9 185.1 162.1 130.4 121.4 129.8 99.4 116.5 149.2 164.8 102.6 130.0 169.7 167.2 127.3 120.9 112.6 136.0 114.6 126.9 150.6 168.7 ;6.7 96.0 ! 126.2 97.0 11.8.4 228.8 135.2 I 1922. January ; : i j 160.0 MARCH, 1922. PHYSICAL VOLUME OF TRADE. The volume of domestic business showed very little change during January. Agricultural movements, coal mining, copper mining, and textile manufacturing showed somewhat increased activity, while production of lumber, cement, and leather fell off rather sharply. Receipts of live stock at 59 markets registered their customary seasonal increase. Grain receipts at 17 interior centers were also larger than in December, due to substantial increases in receipts of corn and oats. Stocks of grain, however, continued to shrink at both interior and seaboard centers. Production of flour increased materially and was considerably larger than in January, 1921. Receipts of both cotton and cotton seed continued to decline during January, whereas tobacco sales increased due to an increased volume of marketing of the Kentucky crops. Shipments of citrus fruit from California were considerably larger than in December or January, 1921. The January lumber cut was smaller than that of December for all reporting associations, except the Northern Pine Association, while there was no material change in size of mill shipments. Receipts of lumber at Chicago and St. Louis also declined in January, but increased in volume during February in spite of the fewer working days. Production of wood pulp showed some curtailment in January, but paper output was about equal in volume to that of December. Receipts of rosin and turpentine fell to a very low level, but this is a customary occurrence in midwinter. Output of both bituminous and anthracite coal mines increased substantially during January, while there was little change in the amount of coal coked by beehive and byproduct ovens. The production of crude oil in January was the largest ever recorded in a single month, yet the number of producing oil wells completed showed a further increase. Pig iron production declined slightly in both January and February, whereas steel ingot production registered large gains in both those months. There was a moderate increase in zinc refining during January and a rather impressive increase in the output of copper. Production of automobiles and vessels increased in volume, while there was a moderate reduction in the number of locomotives completed. Factory consumption of cotton resumed its upward trend in January, and silk deliveries were larger than in either of the two previous months. The quantity of wool consumed, on the other hand, was slightly smaller than in December. Both production and ship-1 335 FEDERAL RESERVE BULLETIN. ments of cement were further reduced in volume due to the seasonal curtailment of the building industry. Production of both sole and upper leatner also declined. Railroad car loadings showed a slight gain, as a result of increased loadings of coal, live stock, and grain. Index • Jan., 1922. Dec, Jan., .1921. 1921. [January average 1919-21 = 100.1 • — • - . • - - • Jan., Dec, 1 Jan., 1922. 1921. 1921. PRODUCTS OF AGRICULTURE. Grain and flour. Receipts at 17 interior centers (000 omitted): Wheat (bushels)... Corn (bushels) Oats (bushels) live (bushels) Barley (bushels)... Total grain (bushi els).... Flour (barrels) Total grain and flour (bushels). Shipments at 14 interior centers (000 omitted): Wheat (bushels) - - Corn (bushels) Oats ( b u s h e l s ) . . . . live (bushels) Barley (bushels)... Total grain (bushels).. Flour (barrels) Total grain and flour (bushels) 1 20,341 55,069 18,32;} 1,267 2,265 24,572 41,731 14,661. 2.346 1,704 32,229 7-1.; : 83. P J IS. 0 42,037 174. ( ; 147.1 132.9 18,509 <SS." 100.0 89.0 2,203 ; 31. L 80.8 54.2 3,754 42. : • I S . n 70.") 97,265 1,768 85,013 1,890 98,732 109.: i()7. C1 110.8 ' 1,431 103. i" 97. 2 83.7 105,222 93,516 105,171 I 108.7 100.9 108.0 12,212 29,167 12,148 360 1,435 14,051 17,310 10,883 1,996 1,335 20,187 70.l. i 17,289 202. ? : 11,524 77.4 2,381 lo. 7 2,874 44. < 55,322 2,896 45,576 3,272 54,255 .107..' • 9 9 . C 105.4 2,678 90. -1 90.2 83.0 78.5 127.1 141.4 119.9 98.1 73.4 80.7 104.1 50.9 90.0 68,353 60,298 66,307 103. 7 Stocks at 11 interior centers at close of month (000 omitted): Wheat (bushels)... Corn (bushels) Oats (bushels) liye (bushels) Barley (bushels)... 26,671 16,836 52,900 3,855 1,620 29,869 15,597 53,918 3,182 1, S31 14,414 5 4 . (• 93.9 29.0 11,597 200. 2 203.5 183.3 29,435 307.1 ! 170.7 170.9 478 •U.4 51.9 5.4 2,057 40.8 92.8 51. S Total grain (bushels) ;.... 101,882 104,396 57,981 119.8 133.7 Total visible supply (000 omitted): Wheat (bushels)... Corn (bushels) 120,804 30,383 135,823 27,109 74,036 120.1 127.4 77.0 15,977 390. 7 240.2 208.0 18,037 17,532 2,306 1,104 648 27,304 11,341 1,941 2,095 1,1] 6 12,717 191.9 130.8 135.3 6,228 570.0 201.5 204.0 1,542 51.3 85.1 84.3 2,749 oo. 0 80.7 138.4 1,971 38.8 58.0 118.1 39,627 1,601 43,797 1,746 25,207 192.4 137. C 122.4 1,175 100.9 03.4 74.0 46,833 51,653 30,494 168.9 110.6| 109.9 13,157 3,959 1,751 2,609 2,230 15,176 2,557 1 447; 2,510! 2,543 15,060 101.4 77.4 116.1 2,525 300.0 229.2: 195. L 1,980 53.2 71.3 60.2 1,602 131.0 139.1 80.5 2,106| 80.4 80.0 81.6 23,706 24,233 23,273 107.1 9,496 8,856 Receipts at 9 seaboard centers (000 omitted): Wheat (bushels)... Corn (bushels) Oats (bushels) liye (bushels) Barley (bushels)... Total grain (bushels) Flour (barrels) Total grain and flour (bushels). Stocks at 8 seaboard centers at close of month (000 omitted): Wheat (bushels)... Corn (bushels) Oats (bushels) Eve (bushels) Barley (bushels)... Total grain (bushels).... Wheat Hour production (barrels) 8,924 90.7 100.0 OS. 2 88.1 105.2 88.8 .86.9| 83.4 336 FEDERAL RESERVE BULLETIN. Jan., ! Index. j [January average 1919-21=100.] Jan., I Dec, 1921. 1922. MARCH, 1922. , Index. i [January average ! 1919-21=100.] Dec, 1921. 1921. Jan., 1921. : Jan., Dec, Jan., : 1922. 1921. 1921. Total ; Shipments at 54 princi- I pal markets (head, | 000 omitted): Cattle and calves... i Hogs j Sheep '• Horses and mules (43 m a r k e t s ) . . . j Total I Other agricultural products. 1,611" 4,2101 I,?"" : 1,404 3,873: 1,622j 45 23 7,670! 6,922; 603 1,740 870 077 1,745 856j 85.1 89.3 87.5 87.3 88.8 47.9 55.4 30.7 8,092; 80.7 87.8 91.5 1,030 80.2 4,058! 80.4 1,709" 110.1 35 i 002 93.9 88. O 85.3 1,64.1 107.5 107.5 101.0 082 132.3 93.4 103.8 33 3,323 3,301; Receipts at 15 western = . markets (head, 000 ' omitted): i Cattle and calves... j 1,12S Hogs ! 2,882 Sheep 1,102 Horses and mules.. i 32 47.2 975' 2,074: 974. lGj Total. Shipments at 15 west- j em markets (head, | 000 omitted): j Cattle and calves... I Hogs ! ! Sheep Horses and mules.. j Total. Shipments of stockers ; and feeders from 34 j markets (head, 000 I omitted): Cattle and calves... Hogs Sheep Total Slaughter at principal centers under Federal inspection (head, 000 omitted): Cattle Calves Hogs Sheep Total i Meats, cold-storage j holdings (pounds, 000 omitted): Beef Pork products Lamb and mutton. 53.4 35. 7 98. ('» 90.0 8L.2 80.1 83.4 2,958| L07.9 84.3 85.0 103.4 42.4 87.5 79.4 5,144 4,039! 5,007 471 1,141 535 31 1,208' 503. 16! | 427 90.2j 88. 9 81.9 1,079 110.6 114.9 104.5 310' 147.9 95.8 87.4 24 53.8 59.1 42.5 2,178 2,215| 1,840 110.4 231 25 183 242 31 205 203 42 70. L 44.7 74.1 72.7 51.8 041 288 3,985 954 259! 3,807i 890; 282 4,347 1,068 72.8 98.0 78.3 94.0 5,868 5,542: 6,387 79.4 78.3 95.3 95.9 90.8 85.4 87.3 105.9 80. 84,548 457,177 6 401 80,007 142,813 396,397i 593,299 7,508 68,113 00.8 74.5 42. 7 02.5 333 439 93.0 32. 05.9 21.1 87.8 54.7 55.2 96.7 85.6 30.0 224.1 Dairy products. Receipts at 5 principal markets (000 omitted): Butter (pounds)... Cheese (pounds) Cold-storage holdings (000 omitted): Creamery butter (pounds) American cheese (pounds). r — TURE—continued . | Live stock. i Receipts at 59 principal | markets (head, 000 ' omitted): (battle and calves...; Hogs I Sheep i Horses and mules , (43 markets)... i r Jan., D e c , Jan., : 1922. ; 1921. 1921. PRODUCTS OF AGRICUL- PRODUCTS OF AGR1CUL- ! TURE—contin u ed. ; 41,697 10,684 805 48,391 37,172 11,237 538 124.5 90.1 30,939 129. 11,387 90.0 95.7 102.9 147.4 130.0 118.7 648 65,138 58,682 92.9 89.4! 112.0 34,062 2,402 34,115 408 77.4 74.9! 95.2\ 95.6 45.5 Cotton seed (tons): Received at mills.. Crushed •. On hand at mills at close of month.. Cottonseed oil (pounds, 000 omitted): Production Stocks Oleomargarine consumption (pounds, 000 omitted) Tobacco sales at looseleaf w a r e h o u s e s (pounds, 000 omitted): Virginia dark Bright beltVirginia North Carolina. South Carolina. 130,373 329,901 273,306 416,021 418,840: 30.2 01.9! 06.9 527,521' 53.4 77.9; 85.3 418,3491 018,173 484,832 09.4! 100.2! SO. 4 100,700 98,295 131,961 100,167 171,887 25.7 38.8; 43.9 100,710 00.1 79.7 [ 112.1. 10,887 19,411 22,688 53.2! 70.4! 71.5 6,277 7,083 7,862 94.41 103.7; 118.3 10,460 16,718 11,572 28,947 18,060 102.2: 87.0 170.4 49,315 00.0: 75. O 194.7 i 17,178 40,519 67,375 53.31 78.0! Total. 31,782 11,070 49,149, 56.3 52.9, Burlcy 20,992 21,680 9,011| 102.9; 111.9, Western dark 70,228 80,352 133,397| 05. Grand total 81.5: Sale of revenue stamps for manufactures of tobacco (excluding Porto Rico and Philippine Islands (pounds, 000 omitted): 443,201 463,664 462,798! 80.81 85.2 Cigars (large) 61,495 44,289 64,662; 94.1 90. 9 Cigars (small) i,935 3,901,560) 90.01 80.5 Cigarettes (small).. 3,705,516 2,995, Manufactured tobacco... 30,938 22,057 24,750J 105.9| 98.9 Fruit shipments (citrus and deciduous) from California (carloads): 3,546 3,097 3,429! 118.1' 88.8 Oranges 575 487 627j 90.5 i 129.9 Lemons 142 118 981 107.3 00.2 Deciduous Apples, cold-storage h o l d i n g s 4,304 5,429 5,105;. (bbls.) Sugar, 7 ports (long tons): 320,773 222,773 132,013 Receipts 290,791 264,941 128,5T"' Meltings Raw stocks at close 85,002 62,419 103,7831 of month 209.0 87.0 44.2 115.2 84.4 99.0 101.7 84.7 114.2 10f>. 2 89.1 FOREST PRODUCTS. Lumber: Number of mills— Southern pine.. Western pine.. Douglas fir Eastern white 174 14 119 pine 19 i North Carolina j pine ' Production (M ! feet)— | Southern pine..! Western pine. .1 Douglas fir Eastern white pine North Carolina pine S h i p m e n t s (M feet)— Southern pine.. Western pine.. Douglas liiEastern white pine North Carolina pine 182 50 108 193!. 54". 110.. 19'. lOJ. 373,231 377,332 35,385 38,901 326,588 238,036 22,530 19,205 5,397 12,095 320,152 82,874 308,817 348,178 83,350 207,162 25,029 3,632 23,574 12,535 289,824; 111.3 113.' 24,698' 78.7 77.0 153,1571 138.7 109.1 80.4 54.9 65.0 24,319J 96/ 134.1 7,123: 311,977, 92.2 105.2 89.8 42,793; 97.2! 112.2 50.2 170,821. 124.8| 108.7 69.0 10,602j 7,880| 84.0: 136.0 35.6 |... MARCH, Jan., 1922. Jan., 1921. Dec, 1921. . Index. ! [January average I 1919-21=100.] Jan., Dec., 1922. 1921. i \ ! j ; i 124,613a,071,534.1,309,480" 104.0 95.5| 121.9 j I i IB, 844i 5L,880| 67,1781. J ; ! | ' 328,249. 403,875! 263,<X)Lj 104,9 100.9: 84.1 i [ \ j 190,897; 258,355 165,308; 109.8 111.4 95.1 I 25! 25i 25;. ! ' ! 19,262; 17,510.' 4,269 . I : 1.4,970! 27,467; 18,085| 21,763. 4,182 39,949 . . 21,230! 20,888! 3,620 ! .. 7,1.19 ' • 53,423| 62,180 23,136| , : 66,965j ! 115,181 327,932 330, 680, i 8,919; ' . 51,563; 85.4 113.4! 1.07.0 79.3 J32.8| 76.0 36,333 j 155. 128. (<j 91.0 . | 310,905. 129. 0 120. Oj 122.3 ! I 37.600' | 6.258 1 4J848J 30,975 5,9841 4,636! 4(),270| 7,4101 5,741 80.5 82.3 83. (I 77.0J 79. T 80.8, 92.0 97. 5 89.0 Jan., D e c , J a n . , 1922. 1921. 1921. continued. Electric power produced by public utility power plants (kw. hours): Produced by water 276,29911,31?, 502:1,342,689 power Produced by fuels..j2, 514,018J2,497,335 2,198,804 Total 49(>i I 1,903'j 514; 1,137 1,86()! ! 2,278 43,326 41,9571 193,705 182,4821 1,151 27.0 37,959 ! 127.0 02.0 111.0 111.7 130,321; ir>i 150.8 121.9 101.5 1,825! 1,108 41.5 75 75.4 72. 1 119. 0 39,223 37,212 40,485; 105.0 102.5 108. 4 439,031 431,887 464,393 100.3 J05.9 112.4 s : 170,315 175,241 865,769 799,257 859,131 : 107.8 104.9 106.9 82,573 77,005 26,562 21,856 586,087 495,590: 2L0,668 83. 7 90,895, 100.9 80.9 103.5 94.0 111.1 21,261: 130.7! 114.0; 104.0 462,3821 117.0. 121.01 92,8 1 Figures for December, 1921, November, 1921, and December, 1920. 92371—22 6 |3,790,317i3,809,837 3,541,493 METALS. Iron and steel (long tons, 000 omitted): 1 Pig-iron production. Steel ingot production Unfilled orders, U. S. Steel Corp Structural steel (long tons): Fabricated structural steel, contracted for, tonnage Structural s t e e l orders, tonnage Shipments Copper " p r o d u c t i o n (pounds. 000 omitted) Zinc (short tons, .000 omitted): Production Stocks at close of month Tin (p 0 u n d s, 000 omitted): Imports Deliveries to factories Stocks at close of month TEXTILES. Kerosene (gallons) I 341,009 340,026 393,071; 95.3i 93.9! 109.9 Gas and fuel (gallons) '1,331,265 1,279,451 837,404 138.5 133.3J 87.1 L u b r i c a t- i ing (gallons)-! 216,766 228,038! 160,523 120.4| 131.7! 93.0 Jan., 1921. FUEL AND POWER— FUEL AXD POWER. Coal and coke (short ! tons, 000 omitted): Bituminous coal production (cst.) -i Anthracile coal— P rodu e t i o u (est.) Shipments Coke— Beehive, production (est.) By-product, production (est.) Crude petroleum: Production (bbls., 000 omit led) Stocks at close of m o n t h (bbls., 000 omitted) Producing oil wells completed Oil refineries: 1 Total production (000 omitted)— Crude oil run (barrels) Gasoline (gallons) Kerosene (gallons) Gas and fuel (gallons) Lubricating (gallons) . Stocks at close of m o n t h (000 omitted)— Crude oil run (barrels) Gasoline (gallons) Jan., i Dec., 1922. 1921. Index. [January average 1919-21=100.] Jan., 1921. FOREST PRODUCTS— continued. Lumber:—Continued. Stocks at end of m o n t h (M feet)— ; Southern p i n e - j l , North Carolina pine i Receipts at Chicago. and St. Louis (M , feet) | Shipments at Chicago and St. : Louis (M feet)....•• Oak flooring— N u m b e r of mills P r o d u c t i o n (M : feet) ' S h i p m e n t s (M feet) I Slocks (M feet). Unfilled orders • (Mfcot) ; Naval stores at 3 southeastern p o r t s : Spirits of t u r p e n tine (casks)— Receipts j Stocks a t close of m o n t h . . . . : Rosin (barrels)— Receipts Stocks at close of m o o t h i 337 FEDERAL RESERVE BULLETIN. 1922. 1,630 1,639 1, 937J 02 .2 50.3 74.0 1,742 1,593 h 799; 71 .4 57.7 71.7 4,1.41 4,242 54.1. 92.7 934! .3 | 25,848 71,500 32, 000. 28,910 29,056 72,100 12, 194 32, 964;. 114 . 7 79.0 42.4 84.1 96.1 39.1 84.0 18,595: 5: 88.2 77.2 03-8 i 85,929|. | 26 ! . 24 66 9,103 76'... 67 8,880 i 2,584- 137.8 9,576 8,310 2,981 3,799 3,483! 175.3 «,703 . . . I ! Cotton ( b a l e s , 000 omitted): ],154j 02.4 81.3 865 Sight receipts 72.0 421 Port receipts 636' 54.3 1,484| Overland m 0 v e590; 95.1 133 ment 157J 7 7 . 0 American spinners' 100.7 954| 623 takings 527!, 92.3 Stocks at ports and 2,863J 89.7 95.0 2,588: 2,383 interior points 1 1,273; 102.0 107.9 1,7381 1,675 Stocks at mills Stocks at ware5,645' 99.0| 103.8 5,1774,618 houses 4,544 4,202 Visible supply 4,822| 94.8] 97.7 Consumption b v mills \. 527 312 366! 104.2J HO. 4 Spindles a c t i v e 34,489 s during month . 34,458 31,539; IO3.2| 104.5 Wool: Consumption b y mills (pounds, 61,283 29,807. 130.4 123.0 61,192 000 omitted) Percentage of idle machinery 0 n first of month] to total reported — Looms wider than 50-inch 53.9! 80.8 30.3: 34. 3 reed space Looms 50-inch reed space or 48.7 75.8 03.5 21.2: less 27.2 56. 5 70.0 78.o 25. 9" 26.0 Sets of cards... 43. 8j 00.0 18.5. 18.3 Combs Spinning spin58.9' 75.0 25.11 27.0 dles, woolen.. Spinning spin39.0, 43.0J 4 3 . 1 13.01 14.3 dles, worsted. 1 Figures for February, 1922, January, 1921, and February, 1921. 83. 2 82.1 90. 7 78. 0 107.8 78.0 121.0 108.9 72.0 94.5 03. 5 i 130.5 135.7 104.7 115.0 129. 5 338 FEDERAL RESERVE BULLETIN. Jan., 1922. Dec, 1921. Jan., 1921. Index. [January average 1919-21=100.] M A R C H , 1922. Jan., 1922. Index. [January average 1919-21=100.] D e c , Jan., 1921. I 1921. Jan., I Dec, Jan., 1922. j 1921. 1921. TEXTILES—continued. Wool—Continued. Percentage of idle hours on first of month to total reportedLooms wider than 50-inch reed space Looms 50-inch reed space or less Sets of c a r d s . . . Combs Spinning spindleSj woolen.. Spinning spindles, worsted. Raw silk: Imports (pounds, 000 omitted) Consumption (bales) Stocks at close of month 32.9! 35.2; 60.0 27.8 27.1 66.7 64.3 51.0 | 32. Oj 24.6; 3.7| 25.4 13. o! 3,881 1.4 25.6 13.8; 5, 55.3 709 165.7' 108.4 i 20,930 22,176 31,139! 24,804J 31,85o! HIDES AND LEATHER. Stocks of raw hides and skins at close of month (number, 000 omitted): 5,819 7,899] 88. Cattle hides 6,053! 2,965 3,0871 137. 2,897 Calfskins 1,025 1,382 107.0 1,046 Kip skins 8,998 10,380 10,870! 90.7 Goat and kid '500 547 2,155j 32.3 Cabretta 12,281 13,184 127.3 106.3 12,661 Sheep and lamb.... Production of leather: Sole leather (sides). 1,654,744:1,745,625 1,190,950 . Skivers (dozens)... 17,950- 20,149 14,234:. Oak and Union harness (sides 59,815; 62,551; 42, stuffed) Stocks of leather: Sole and belting (pounds, 000 omitted)....! 195,8971 186,531 Upper (square feet, 415,790! 425,942 000 omitted) Leather products: B e l t i n g , sales ( p o u n d s , 000 309,474 omitted) Boots and shoes, o u t p u t (pairs, 000 omitted). 7,455! 7,350 7,77li Men's 7,748! 7,727 7,976; Women's 9,039! 9,020 9,427| Other MISCELLANEOUS MANUFACTURES. Woodpulp (short tons): Production Consumption ! Shipments I Stocks, e n d of ! month i Paper (short tons): Newsprint— ! Production ! Shipments | Stocks, end of ' month I Book production...\ Paper board— ] Production i Shipments I Stocks at end I of month ' Wrapping paper i production • Fine paper produc- ; tion , 266,921! 272,835: 275,353 93.0 92.8 220,064: 213,571! 215,087 100.8 94.7 40,667: 47,896: 32,098 03.0| 82.7 176,113 169,923 200,817 99.5: 105,808: 107,877: 123,830| 85.9 103,192| 107,070: 116,176 86.3 26,550! 73,446' 23,934! 70,798, g 91.0 91. 32,417 112.9 112.1 64,382 95.3 90.1 145,198! 149,047! 105,806 145,485 145,809! 100,431 MISCELLANEOUS MANUFACTURES— contd. Building materials (000 omitted): Silica b r i c k Production 4,7 6,581 11,659 Shipments 8,246 7,32l 8,656 Stocks, close of 36,344 38,812J 39,730 month Face brick— 17,833 87.0 Production 25,331 38,444 .5 14,902 23,151 8,704 Shipments Stocks in sheds 154,285 160,961 154,092 143.1 124.8 and kilns Unfilled orders a t close of 31,799 34,755 month 28,3921 47.4 Cement (barrels)— 4,052 6,559 J roduction 4,0 Shipments 3,697 2,5 2,829 Stocks a t close 13,148 of m o n t h . . .. 10,300L 30.3 Rubber (pounds, 000 omitted): Imports of crude 54,011 rubber 58,645; 26,912 139.2 127.2! Consumption bytire manufacturers 18,0491 6,625 Pneumatic tires: 1 1,840 Production 1,757| 506. 3,697 Stocks 5,5081. 3,908j Shipments, domestic 1,327. 1,343 115.1 Inner tubes: 1 2,070 Production 2,126 50sL 14G. 9 4,731 Stocks 5,204i 5,787;. 141.3 Shipments, domes109.0 2,523 tic l,540| 1,481;. 139.0 | 136.7 Solid tires: 1 40 Production I 44; 16!. 169 Stocks : 173i 303!. Shipments, domes- 1 40 tic ! 35. 41 Automobiles: ; Production (number)— 81,424 70,435:. Passenger cars. 9,127 8,183!. Trucks j Locomotives (number): 11 30! Domestic shipped.. 154 j 6.8 27. c 63 59; Foreign completed. 71 i 106.8 90.il Vessels built i n t h e United States a n d officially numbered by t h e Bureau of i Navigation: • : : 711 45! 94 j 62.3 47. S Number 40,108! 216,280; 21.0 26.8 Gross tonnage j 52,704 TRANSPORTATION. : Railroad operating sta- ! tistics: 1 i Net ton-miles, rev- ' enue and nonrevenue (000 omitted) 25,707 29,139! 34,670; 82.1 88.] Net tons per train.., 609 633: 657: 94.7 94.8 Net tons per loaded ] 95.9 car ' 27.11 31.1; 94. ( 97.1 98.5 49.7 Revenue-freight loaded and received from 113.5 connections, classified according to nature of product (short 100.5 tons): 97.2 Grain and grain 210,2441 products 186,545 182,220! 120.2 109.9 137.8 135,707 129,522 147,029 84.8 92.7 Live stock 83.5 703,001 582,839 850,938! 83.8 77.0 Coal 31,650 Coke 30,519 43,423! 76.7 68.8 9.2 Forest products... 203,997 199,560 201,711i 91.0 93.9 18,836 Ore 24,693 37,590! 38.5 50.3 Merchandise, 1. c. 1. 875,296 941,824 766,574 138.9 115.6 881,887 945,115 898,056 74.9 Miscellaneous 81.0 Total |3,060,107-3,040,617J3,023,677J 93.8 91.1 i 64.5 33,842 Jan., Dec, Jan., 1922. 1921. 1921. 95.0 104.2 62,731; 63,018| 65,791; 64,850J 44,620 119.5 107.2 27,405: 25,843! 22,756 58,479 98.7 92.2 81.9 L 01.2 142.9 42.3 69.4 95.7 120.4 82.5 110.7 102.2 109.1 104.2 91.8 101.5 105.2 89.9 76.7 121.7 76.3 92.7 Figures are for December, 1921, and November, 1921, and December, 1920. 339 FEDERAL RESERVE BULLETIN. M A R C H , 1922. Jan., 1922. Dec, 1921. Jan., 1921. Index. [January average I " 1919-21=100.] . r .Jan., 'Dec, | Jan., j 1922. • 1921. 1921. TRANSPORTATION—COIl. Revenue-freight loaded, classified according to geographical divisions: Eastern Allegheny Pocahontas Southern. Northwestern Central western Southwestern Total 741, 607, 130, 4(58, i 411,' -168,1 230, ( Freight car surplus (number): Total Box Coal Freight car shortage: Total 1 !,730 ;,094! 670,445! 613, lfe'8, 123,169 460,037i 401,721! 467, 216.535 97.2 88.9! 91.6!' 87.8 88.2: 89.7 For the first time since May, 1921, the general European index shows an increase last month, thus marking the end, temporarily at least, of the severe decline in ocean freight rates which has continued for so many months. Higher quotations on grain and flour have had the most influence in raising the level of the February index numbers, the increase being greatest in the French Atlantic and United Kingdom trades. Charter rates were likewise higher, and particularly for steamers "in prompt position" charterers found difficulty in filling their immediate requirements except on owners' terms. REPORT OF KNIT-GOODS MANUFACTURERS OF AMERICA. 330,681 470,516 132,174! 191,707 145,913! 221,614 The total production of winter and summer underwear for the six months- ended January 31 was as follows: ISox Coal. Bad-order cars, t o t a l . . . | 313,190 Vessels cleared in for! eign trade (net tons): ! i ' ! ! American % 050,856 2,431,309 2,191,201 116.3 100.5| 124.2 Foreign jl, 935,475 2,580; 301 ;2, -15t,617 j 92.2: 100.7> 116.9 ,3,986,331 5,020,610 4,645,818. 103. 2 103. Total Percentage of American 47.2 48.5 to total Panama Canal traffic (tons, 000 omitted):i Total cargo traffic .. American vessels... British vessels 855 356 237 953 349 343 1,077 138.1 473: 335 106.2 156. Number Actual Per ceu t of mills producof reporttion ing. (dozens). normal. August September October November December 1921. j 48 | 412,627 55 ; 572,833 56 : 675,205 57 ! 692,452 49 : 518.376 J922. January Winter"underwear (January).. Summer underwear (j anuary). INDEX OF OCEAN FREIGHT RATES. 71.1 84.4 87.3 55 : 040,489 30 ! 292;512 . 37 i 347,977 ! ; i 79.1 65. 8 95. 3 The accompanying table shows the monthly fluctuations in ocean freight rates prevailing Order for between United States Atlantic ports and the January and production report The mon tii ended 31, 1922, follows. number of principal European trade regions. The figures mills reporting was 40. are derived from the actual rates quoted on the following commodities: Grain, provisions, Per cent ! of normal cotton, cottonseed oil, and sack flour. For i Dozens. production. the methods used in constructing the index ! 1,295,379 see the August, 1921, BULLETIN, pages 931- Unfilled orders first of m o n t h 114.2 New orders received d u r i n g m o n t h J 782,616 934. RELATIVE OCEAN FREIGHT RATES IN UNITED STATES AND EUROPE TRADE. [January, 1920, rates=100.] United States Atlantic ports to j ; NetherU n i t e d ; F r e n c h ; l a n d s i ScandiKing- j Atlantic.. and navia. Month. ! | 1921. January February March April May June July August September October November December 1922. January February 1 60.7 54.7 49.3 50.1 50.6 42.7 42.5 42.9 41.8 37.0 33.5 32.4 : ! i I ! ; ' ! ; | ! 31.7 34.7 ! 30.2 27.7 24.6 32.6 35.0 34.7 33.2 33.4 32.7 28.5 25.0 22.7 Belgium. ; : . ; " i 22.7 '• 25.7 I 34.1 29.2 28.3 36.6 38.2 38.3 37.0 36.7 35.8 30.7 25.2 : 22.9 ; 23.3 25.2 4.2.9 30.9 j 30.8 29.4 31.3 31.3 29.0 28.4 28.2 26.7 24.0 23.3 23.4 j 23.3 I Mediterranean. 43.2 43.8 42.2 35.7 34.6 34.0 34.7 34.3 33.6 33.3 32.9 32.3 32.2 31.8 ; Total (A) 539,526 7,264 : 78.7 1.1 546,790 : Balance orders on hand Feb. 1 (A minus B ) . Production 1,531,205 ' . 505,242: 73.7 All Europe. 43.3 38.5 35.9 39.0 40.1 37.6 36.8 36.7 36.0 32.3 28.8 27.2 27.1 29.1 Thirty-four representative mills which reported for December, 1921 and January, 1922, furnish the data for the following table: [In dozens.] Decem- i Loss. 5S5SJ Un filled orders first of m o n t h . • 1,228,611 N e w orders ! 271,764 Shipments 320,126 Cancellations 10,850 Production • 398,338 Figures are for December, 1921, November, 1921, and December, 1920. : 2,077,995 Shipments during month Cancellations during month. Total (B). ; : : 1,175,377 481,270 i 209,506 524,007 ! 203,881 6,940 : 417,051 ' 18,713 53,234 3,910 340 FEDERAL RESERVE BULLETIN. RETAIL TRADE. The following tables are a summary of the data obtained from 387 representative department stores in the 12 Federal Reserve districts. In districts Nos. 1, 2, 5, 6, 7, 9, 11, and 12 the data were received in (and averages computed from) actual dollar amounts. In districts Nos. 3, 4, 8, and 10 most of the material was received in the form of percentages, and the averages for the cities and districts computed from such percentages were weighted according to volume of business done during the calendar year 1920. The changes in retail trade for the United States as a whole are obtained by combining the district percentages, after multiplying them by a system of weights based partly on population and partly on banking recourccs. The tables for the month of January are based on reports from 26 stores in district No. 1 (Boston), 64 stores in district No. 2 (New York), 54 stores in district No. 3 (Philadelphia), 29 stores in district No. 4 (Cleveland), 22 stores in district No. 5 (Richmond). 34 stores in district No. 6 (Atlanta), 6C stores in district No. 7 (Chicago), 19 stores in district No. 8 (St. Louis), 13 stores in district No. 9 (Minneapolis), 11 stores in district No. 10 (Kansas City), 22 stores in district No. 11 (Dallas), MARCH, 1922. and 33 stores in district No. 12 (San Francisco). Bridgeport, in district No. 2 (Now York), and Milwaukee, in district No. 7 (Chicago), are shown separately for the first time this month. Figures for Denver, which are shown separately for December, are included in "outside" stores in district No. 10 (Kansas City) for January. A comparison of monthly changes in activity of different types of retail business since January, 1921, is shown in. ths second of the following tables. The 158 department stores are located in districts Nos. 1, 2, 5, 6, 9, 11, and 12, while the mail order houses do business in all parts of the United States. Chain-store figures are based upon the total sales of the same reporting chains for each month, but the actul number of stores in those chains shows some variation. It may be noted that all reporting types of business show decided decreases in volume of trade for January as compared with December, this being most emphasized in the case of department stores and 5 and 10 cent stores. The 5 and 10 cent chains and grocery chains, however, had larger sales in January than in January, 1921. Department stores, mail order houses, and cigar chains had smaller sales than in January, 1921. CONDITION OF RETAIL TRADE IN THE FEDERAL RESERVE DISTRICTS. [Minus sign (—) denotes decrease.] Percentage of change in n ct sales compared with corresp onding period previous year. Percentage of cllangc in stocks at close of m on In compared with— Perccn tage of outsta nding at clo se of orders iit close month 1to avcrofinoi ithto age mi nthly total pu rchases sales for same during jorevious pen od. calendsir year. Pcrcen 1 averagetago of stocks : District and city. Dec, 1921. J u l y l Jan. 1 Jan.. to 1922. Dec. 31, to 31, 1922. 1921. Same month previous year. Dec, 1921. Jan., 1922. Previous month. July 1 Jan. 1 to Dec. 31, to 31, 1922. Dec, j Jan., 1921. 1921. | 1922. Dec, 1921. Jan., 1922. . _ ... . | District No. 1: Boston Outside . . 5.9 5.5 District District No. 2: New York City and Brooklyn Buffalo Newark Rochester Syracuse Bridgeport Outside District District No. 3: Philadelphia.. Outside District District No. 4: Cleveland Pittsburgh Cincinnati . Toledo..... Outside - 8.7 - 6.3 - 1.9 - 4.9 - 8.7 — 5.5 — 6.3 - 7.6 0.9 1.4 —13.7 i - 8.7 - 1 8 . 1 ! - 3.4 290.0 395. D 298.4 428.3 . 4.3 3.6 6.6 5.1 5.8 - - 2.7 - 8.1 - 6.2 1.0 -15.0 1-7.1 316.0 329.2 4.2 6.4 - 7.3 -16.2 - 0.8 -11.3 - 6.9 -14.4 - 8.5 - 2.4 — 3.0 - 0.1 -10.9 —22.0 -25.1 5.5 — 5.6 314.2 372.9 315.8 350.5 356.2 5.8 76 57 3 7 13.3 473.0 350.8 454.8 332.5 379.6 426.2 305.9 568.8 5.2 6 0 - 4.0 - 1 4 . 9 !! - 3.6 22.6 1.7 —18.6 — 0.4 - 1 2 . 4 ; - 9.9 12.6 1 1.5 . . . . ! —11.9 - 1 4 . 1 - 8.3 5.0 4.8 - 7.8 - 3.9 - 7.8 - 5.5 3.7 -16.3 323.1 347.1 5.1 6.4 -10.9 -15.6 - 6.4 - 7.5 -10.9 -15.6 -10.4 - 1.2 - 8.4 .6 -12.0 j - 0 . 3 -19.7 . 2.8 321.7 426.6 345.3 536.3 6.8 2.9 8.8 6.8 -12.2 - 6.7 -12.2 - - 6.1 -13.9 347.9 394.0 5.9 8.3 —15.3 —6.5 - 6.5 - 4.8 - 3.2 379.1 363.6 407.7 388.2 443.1 348 4 369.3 439.7 359.3 476.4 57 7.1 4.6 7.5 77 10 4 11.1 6.2 16.5 - 1 7 . 6 : - 8.7 381.0 376.5 5.6 9.3 1.6 . 3.0 - 3.6 1.2 . . District 8.1 3.6 - 7.3 — 6.8 - 1 6 . 2 3.5 — 0.8 - 4.5 - 1 1 . 3 - 8.2 - 6.9 -14.4 - 5.2 - 2.4 -10.0 —15.2 - 3.2 - 4.7 - 7.4 I -10.7 -19.6 -28.9 - 8.6 -14.4 -23.3 — — - 3.1 5.6 2.3 3.8 7.2 — 18.9 -21.6 - 7.3 - 9.5 -17.5 -21.9 -17.3 ===== .3 -21.0 - 3.8 5.7 8.2 - 3.7 .4 ! —19.6 -28.9 - 8.6 -14.4 -23.3 -11.2 -13.3 -14.2 -23.4 - 2.0 5.0 — 15.3 - 4.7 — 16.1 - 9.9 - 1 9 . 0 - 7.8 - 2 8 . 0 - 1.9 - 1 8 . 4 i -21.9 -13.2 - 2.7 3.6 2.3 2.2 67 5.2 FEDERAL RESERVE BULLETIN M A R C H , 1922. 341 CONDITION OF RETAIL TRADE IN THE FEDERAL RESERVE DISTRICTS—Continued. Percen tage of change in net sales compared with corres ponding period previous year. . Percentage of • average stocks at close of ; month to aver1 age monthly sales for same period. Percentage of change i n stocks at close of 1nonth c()m pared with— | District and city. I July I Jan. 1 Jan., to 1922. D e c 31 to 31, 1922. 1921. Dec, 192 L. Same month previous year. District No. 5: Dec, • — 7.4 ~ 0. 7 .7 -12.4 —19.5 -14.0 -12.1 -21.8 -17.0 Jan., • D e c , 1922. 1921. - 9.5 j - 1 7 . 0 — 5.9 51 i 5.7 2.8 7.0 3.7 5.3 3.9 - 2 1 . 8 j - 5 . 1 ; 369.3 414.3 4.4 5.9 726.4 957.0 502.2 449.4 957.4 661.4 3.3 4.3 8.0 2.2 2.1 7.5 8.2 9.0 2.6 6.5 436.3 593.2 5.0 7.7 1.4 1 - 2 0 . 9i - 5 . 7 : 345.6 — 16.1 1 - 1 8 . 7 I — 6. 7 349.0 — 1.7 - 2.0 i - 1 4 . 5 - 5.2 473.4 338.1 330.6 505.1 469.5 3.5 5.8 7.1 8.6 4.4 5.4 7.1 5.4 —24.9 -37. 9 -.10.7 — 15.2 -33.0 -12.2 —24.7 -32.2 -12.8 —15.4 -26.1 -21.8 —24. q -37.9 -10.7 — 15.2 -33.0 -12.2 - 7.8 8.8 - 9.8 - 8.1 11.7 - 6.3 - -19.4 -20.5 -19.4 - 4.5 - 2.5 - 8.5 — 9 2 -14.4 - 1 1 . 4 - 9.9 - 7.0 1.8 —20.9 — 14.7 — 9 2 - 1 3 . 1 - 1 4 . 4 ! - 6.8 - 7.1 - -13.5 - 6 . 6 1 -12.3 - 8 7 -16.2 — 10.9 — 13 5 — 14.7 —10.8 -15.0 - 7.6 - 9.9 — 5.6 1.8 District District No. S: St. Louis Louisville Memphis. Little Rock Outside 6.6 — 8.8 4 0 — 8.3 — 13.1 —10.6 —24.5 -11.9 | -15.2 ! 406.3 449.2 414.3 595.1 -16.8 District District No. 7: Chicago Detroit. . . . . \filwaukec Outside : Dec, i Jan., 1921. | 1922. 350.1 346.5 354.5 475.6 — 17.2 -30.1 - 3. 7 -13.4 -24. 7 -17.3 : ' July 1 Jan. 1 to jDcc 31, to 31, 1922. 1921. Jan., 1922. ! ; —21.9 ' — 2 0 3.3 9.4 - 2 0 . 4 ; - 8.7 : 3.6 - 2 0 . 7 1 - 9 . 7 16. 8 - 2 5 . 2 - 1.9 ! 19 5 — 12 5 4.3 • 1.6 : - 6.7 - 1 4 . 0 — 3.8 — 12.1 — 7.0 -15.0 . -21.8 -11.8 ; - 4.5 Richmond Washington . Outside Pre vious me nth. . 1921. District District No. 6: 'Vtlanta Birmingham Nashville New Orleans Savannah Outside Percentage of outstanding orders at close of month to total purchases during previous calendar year. 12.9 7.4 6.3 2.0 8.0 3.4 : 470.6 -25.0 i - 0 . 1 i -10.8 1.3 ; 490.0 441.3 i -15.8 ' -22.0 !4 394.3 - 9.0 • — 1 . 1 1 568.7 ; -14.6 3.4 443.9 -17.9 j - 0.2 3.0 8 1 6.4 - 7.6 -16.7 - 5.0 407.4 410.2 4.9 7.6 -16.2 : 4.0 — 13.1 -24.5 -15.2: - 2.6 - 8 . 8 — 11.9 — 1.5 - 5.2 — 0.6 1.9.2 1.5 - 3.0 3.5 -15.9 —25.0 -15.3 -19.7 -17.1 — 14.6 — 4.4 - 2.8 -14.0 360.6 580.4 485.7 441.3 507. 5 394.9 561.2 557.3 424.7 357.0 3.7 3.6 6.0 6.8 6.6 8.7 5.3 8.1 9.3 4.1 6.4 -8.6 -15.1 -11.9 -15.1 1 - 3.9 — 4.0 - 1 7 . 3 - 9.8 401.4 442.1 4.5 8.3 -18.3 District District, No. 9 District No. 10: Kansas Citv Denver Outside -15.6 -17.3 -15.6 j - 8.1 - 3.7 -12.9 - 3.6 321.3 582.9 2.8 6.1 1.0 — 8.0 - 1 1 . 2 ' 8.6 — 0.1 - 9.9 - 1 4 . 5 ! - 1 1 . 3 7.6 24.1 -19.1 -15.4 - 4.5 436.2 : 552.8 : 393.3 | 505.1 18.9 475.5 ! 1.0 2.1 5.0 12.5 — 3.9 !—11.2 -14.5 -CIS 11.0 8.0 - 4.3 District District No. 11 District No. 12: Los Angeles.... San Francisco.... Oakland Sacrament o Seattle Spokane Salt Lake Citv -•-- i -12.9 - 7.6 -12.9 - 1.8 13.4 -20.3 3.1 443.7 ! 490.0 | 2.2 10.2 -16.7 -19.0 -21.3 -19.0 . -11.6 - 2.0 -22.5 -0.4 443.2 ; 474.6 ' 7.5 9.8 l ; 9.9 6.8 - 7.9 10.9 416.5 382.3 ! 434.4 : 409.7 343.9 469.2 .' 439.2 . 467.3 343.4 : 581.8 483.2 437.9 748.3 523.5 ! -5.5 411,7 ; 489.6 i 6.8 8.9 — 4.1 378.5 . 425.8 5.0 7.7 14.4 22.7 5.3 — 6.2 15.0 - 2.6 1.1 — 2 5 — 17.4 — 16.8 — 4.9 - 1.6 — 6.4 - 4.6 -17.2 — 14.4 -12.1 —21.0 — 19.7 -18.0 -11.8 10.6 — 0.6 — 3.9 — 3.8 -10.8 - 3.0 : - 6.3 - 7 . 7 ; - 6.3 -13.6 3.4 -15.4 i — 5. 5 ! - 1 2 . 4 District — 2.5 1.1 —6 6 — 4 9 - 9.4 - 1 5 . 3 — 13 8 — 4 6 — 10.6 1— 11.8 —11.0 - 1 4 . 7 -16.5 j -19.9 -12.4 - 8. 0 ] - 0.3 -17.2 — 2.5 1.8 — 4 9 — 15.3 — 4 6 —11.8 — 14.7 -.1.9.9 16 - 9.1 — 15 3 — 5.0 —14.5 -16.0 . . . . United States -10.8 8.7 - 5.7 4.0 6.2 9.0 10.0 VALUE OF RETAIL TRADE. [Average monthly value , 1919=100.] Chain stores. Date. Depart- Mail- : ment order , i stores ; (156 1 stores). i Cigars *l '(6 l g 1 (3 jchains) . chains). i 1921. January February March * Amii May Tune Julv August "i i 103.8 ^S. 5 116.9 : 112.5 ! 112.6 111.1 79.7 • **2. 7 i Date. 1 Chain stores. Depart- Mailorder ment stores houses Grocery! Five : Drug Cigars ; (158 (13 and ten (3 (6 stores). houses). chains).j cent (4 chains). chains). chains).. 69.1 ' 1.15.5 64. 8 95.1 77.5 60.2 62.1 ! 109. L ; 119.2 ! 112.1 i 111.3 ! 108.7 49.3 I 106.8 56.4 : 114.3 : 86. . 1 92.9 121.1 HI. 9 112. 2 109. 7 108.0 116.0 115.3 i 108.6 120.8 119.2 117.2 118.2 118.9 ! .11.6. 4 , ! ' | : H9.9 1921. September.. October 116. 131. 8 November.. 134. 7 •• D e c e m b e r . . . 1.29. 5 i 1922. 127. 8 UiMuarv 128. 5 127. 6 95.0 130.6 123.4 182.8 72.7 88.6 83.3 80.3 110.4 126.2 125.7 134.9 91.2 65. 4 1.28. 0 113.4 ; 116.7 141.9 134.1 241.6 : 121. 7 1.1.2. 5 141.6 128.0 138.0 124. 8 172.7 94.6 : 114.2 111.0 342 FEDERAL RESERVE BULLETIN. MARCH, 1922. WHOLESALE TRADE. P E R C E N T A G E O F I N C R E A S E ( O R D E C R E A S E ) I N N E T S A L E S I N JANUARY, 1«)22, A S C O M P A R E D W I T H T H E P R E C E D I N G M O N T H ( D E C E M B E R , 1921). Dry goods. Hardware. Groceries. I District. n- |Xn Boots and shoos. Furniture. ,> or Num-; p Farm im- Auto tires. plements. Auto sup- rtalionory. plies. Drugs. iNum-l Xuin- Num- Num- p jj N u m o ber of 00111 W1 offf ccnt • | firms. firms. cent, j!firms.! No. No. No. No. No. No. No. No. No. No. -a. 2 3 — 7. — 5 -10 - 6 + 3 5 6 7 9 10.. 11 12 - 2 : 41|-14.3| 4Sj i. 221 + 4.5 ; 46:-L 51.9] 321-1-26.2! 31 -f 49.2j 12!+29.6i 101+95.3! 12U-37.3: 31+15.6; 3"—22.4i - 2 1 . 8! HI 11-h 7. i; 2i;-4.-i! i 4 | - 9. lj 51-29, 5! ]2'-22.0i 1.2 - 2. 5i 10 ; -3.7 1-19. 61 11-10.4, i 19— 3.S= 22 - 2. T 17 1.0.2! 10+ r3.6| 8 .1J 21 "- J-1. 2 20-13.3 9-3S.3; 10 '• 3 .....-;. . . — 5.6' ... -28. V 21—21. 7. j+0.5:. ! ! . . . - . . . + 3.3> 4! 8 i 12i —2. S .1. ' 6!—13.51 4 : 8! I •• • 9!+ 0.3 21,-20.7; <S' 13|+0.31 i+5.2 5!_ 8.9j 35-4- 4.9: 1 3 ! - 9.-1' : ! i I i i 4 ; -32.4; i !. 1-13.8' j+273.0 1+43.0": 2(>i-12.5 : ! 8 4 23 - 3 6 . 2 ! 15 ' P E R C E N T A G E O F I N C R E A S E ( O R D E C R E A S E ) I N N E T S A L E S I N JANUARY, 1922, A S C O M P A R E D W I T H JANUARY, 1 9 2 1 . Groceries, j D r y goods. Hardware. • Boots and shoes. District. r nrniture. Drugs i" • NumiNum- Per 'Num-. Per i X u m - Per Num-: Per Num-! Per I N u m - Per mi P e r Num-' ber of! cent. bcr of .ber of ber of r of! ber oil Per bcr of ibcr of1 I cent. firms.; c c n t - f i r m s . c c n l " • iber of firms. cent, i 'firms. firms.' firms.) cent. firms. : j No. 2 No. 3 No. 4 No. 5 No. 6 No. 7 No. 9 No. Xo. No. 12 -10.3 -15. 2 -14.5 — 14.9 |-18. 8 ! - 6.1 j - 9.9 " 5.1 — — 17.0 — 1.9 41!+40.3 48; '. 22'+ 6.4: 46'+ 2.5s 3 2 , - 1.5 31'+42.41 10,+62. ii .12,+ 8.0: 31 +12.7' i 3J-28.5; ...-20.2; 11.1-28.6: 141—13.5" 211— 8:8! l l j!- 1 4 . 1 4 -12.-1' o!-1.2. 6 ]2 l -26.6" 12|— 0.7 11 + 6.4: ! 25. 10 19.+36.5" 2 2 ! - 8.3' . +10.0 20+206.7 9"+ 17. 8 16: 10+47.1 3" 8 ....: +57. 6 11 i. . . . . - 5.9 2L. + 43.9 21 +26.2 1 7 - 3 . ]"• . . . i - 7.0 8 i 1 3 : ^ 3.0." ...:+ 0.2! 1 3 -16. 2| 13— ().8 ! -1-24.7 12J + 14.9 6 i - 6.3 8,... 9 : - 5.9 .'-10.8; 4—1.7.2 21I-U.7! —22.9! '— 73. 7i i 26-45.1 i -21.7 41 4j i I 23-11.6, I ! Jo DISCOUNT AND OPEN-MARKET OPERATIONS OF THE FEDERAL RESERVE BANKS. Following is a set of tables showing the volume of bills discounted and of acceptances, municipal warrants, and Government securities purchased by the Federal Reserve Banks during January, 1922. V O L U M E O F O P E R A T I O N S D U R I N G JANUARY, 1922. Federal Reserve Bank. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago Sfc Louis Minneapolis Kansas City Dallas San Francisco Total: January, 1922. January, 1921. Bills discounted for member banks. 8148,728,662 i 945,228,302 i 246,117,377 i 184,602,699 I 204,741,710 i 80,778,934 I 186,179,652 , 74,527,672 i 25,324,136 ,. 46,220,158 | 39,195,873 L 164,122,291 i United States securities purchased. Bills bought in open market. 814,526,904 49,226,015 8,923,046 3,307,588 1,098,000 2,395,176 19,409,308 880,054 26," 666' Bonds and notes. Total. i Municipal | ! warrants j Certificate i purchased, i of indebtJanuary, 1922. J January, 1921. edness. S2,140,000 30,697,550 10,043,200 1,162,350 §26,318,500 77,845,500 500 6,880,000 9,287,650 339,800 24,600 10,000 29,125,500 203,000 721,500 4,000 ""3,"72i,"84i 8,452,350 62,157,500 11,700 141,100,500 274,092,000 9,029 2,000 2,345,767,466 ! 103,507,932 8,257,762,245 ! 122,268,488 Sol, 000 60,029 S191.714,066 1,102,997,367 265,135,123 195,952,637 205,839,710 83,174,110 244,002,110 75,950,526 26,079,265 46,254,158 39,195,873 176,298,482 5521,894,102 5,789,802,707 383,218,493 412,390,636 247,729,048 185,274,510 474,435,863 146,870,654 81,980,175 100,742,070 92,743,276 217,052,899 2,652,593,427 8,654,134,433 MARCH, 343 FEDERAL RESERVE BULLETIN. 1922. VOLUME OF BILLS DISCOUNTED DURING JANUARY, 1922, BY CLASSES OF PAPER; ALSO NUMBER OF MEMBER BANKS ACCOMMODATED. Federal Reserve Bark. Boston New York Philadelphia Cleveland Richmond. ~' " ' Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Member banks' collateral Customers' notes. paper secured by GovernSecured by I merit Otherwise ! obligations. Government secured. obligations. i §3,905,042 I 860,058 i 5,715,470 j 1,910,487 1,010,735 1,718,095 2,201,630 757,582 126,755 783,289 228,185 721,700 Bankers' acceptances. Commercial paper, n. e. s. 846,084,900 748,840,062 187,805,807 134,713,633 §159,000 178,642,883 1,389,900 36,235,510 579,000 126,263,396 1,476,953 51,878,803 99,000 12,647,176 3,081,740 30,494,194 18,253,733 2," 893,' 733" 86,867,154 24,995,792 $98,248,591 193,812,364 52,532,863 45,152,639 17,882,895 35,863,279 46,047,758 17,157,115 4,487,055 8,988,522 7,870,527 46,349,902 Total: January, 1922... i 19,939,028 1,658,227,251 34,675,118 574,393,510 December, 1921.. j 34,447,381 2,643,303,761 38,970,549 1,369,899,777 January, 1921.... 148,545,029 3,992,943,600 29,724,638 December, 1920.. 143,335,882 4,886,257,779 Agricultural paper. 38,638,721 3,986,445,075 Livestock paper. $342, 832, 444, 205, 5,019, 5,250, 9,781 3,417, 3,465, 2,161, 5,381, 2,664, $11,637 95,454 17,412 390,569 I 109,106 540,159 1,493,998 ' 3,732,026 4,065,895 2,064,248 $500,000 75,000 I. 260,497 ! . 439,564 38,967,290 12,520,504 j i 1,275,061 I 52,648,490 17,040,568 :$2,061,000 j 137,395 j $40,000 8,429,562 51,176,925 20,326,421 j 9,643,021 4,367,464,512 i Total reduced to a com! mon maturity basis.1 Trade acceptances. Member banks. Total, all classes. Federal Reserve Bank. Foreign. Dollar Foreign, j Domestic. exchange. Domestic. ! $147,890 ! 871,472 i 118,289 1,866,305 778,291 ! 742,341 ! 223,890 I 416,632 • 22,098 ! 60,361 i 62,821 i 459,314 I $148,728,662 j 945,228,302 1 246,117,377 j 184,602,699 j 204,741,710 ! 80,778,934 j 186,179,652 74,527,672 ! 25,324,136 ' 46,220,158 39,195,873 164,122,291 Accommodated. Number in district Jan. 31. Per cent of total. Amount. dumber. 231 356 402 376 395 364 937 320 500 563 536 366 53.0 44.6 56.7 42.6 63.1 70.0 64.8 54.3 48.8 50.6 62.6 43.0 Per cent. $119,314,720 413,090,262 188,271,828 200,356,428 181,033,113 216,824,167 375,427,816 131,410,645 83,722,540 120,787,307 130,493,085 185,035,555 5.1 17.6 8.0 8.5 7.7 9.2 16.0 5.6 3.6 5.2 5.6 7.9 436 798 709 883 626 520 1,445 589 1,024 1,112 856 852 j 5,769,704 • 2,345,767,466 I 2,345,767,466 1 10,016,944 ! 4,168,565,865 ' $20,170,995 8,257,762,245 16,317,764 9,461,657,679 100.0 9,850 j 9,855 ! 5,346 5,676 54.3 57.6 9,659 ! 9,628 j 5,291 5,551 54.8 57.7 Boston New York Philadelphia... Cleveland Richmond Atlanta. Chicago St. Louis Minneapolis. „. Kansas City... Dallas San Francisco., Total: January, 1922 December, 1921 January, 1921.... December, 1920., j ! I i ! 1 Total discounts multiplied by ratio of average maturity of bills discounted by each bank to average maturity (13.75) for system. VOLUME OF BILLS DISCOUNTED DURING JANUARY, 1922, BY RATES OF DISCOUNT CHARGED; ALSO AVERAGE RATES AND MATURITIES. 4£ per cent. Federal Reserve Bank. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco '. ! ! : ! j 4f per cent.; 5 per cent. 5.v per cent. Total. 728,662 22S,302 117,377 602,699 741,710 778,934 179,652 527,672 324,136 220,158 195,873 122,291 Per cent. 4.50 4.50 4.50 5.00 5.00 5.00 5.00 5.00 5.18 5.00 5.19 4.73 Days. 11.03 6.00 10.52 14.92 12.16 36.91 27. 73 24.25 45.46 35.94 45. 78 15.50 402,564 1 913,412,292 i 20,808,305 :' 2,345, 767,468 ! 1,072,731,549 i 197J633J045 4,168, 565,865 "" '•"" "'" i I 4.84 4.91 13.75 11.67 $148,728,662 | 945,228,302 j ' 246,117,377 j :....! • j ! ! ! ! j j : 1 { j ! §402,564 i 71,069,964 " 8184,602,699 204,741,710 80,778.934 186,179,652 74,527,672 17,475,180 46,220,158 I 25,833,900 93,052,327 $148, 945, 246, 184, 204, 87,848,956 | "12*9597349"! .{ Total: Jaimary, 1922 December, 1921 1,411,144,305 2,898,201,271 Average Average rate (365day basis). maturity. 186, 74; 25, 46, 39; 164, : 344 M A R C H , 1922. FEDERAL RESERVE BULLETIN. VOLUME OF BANKERS' AND TRADE ACCEPTANCES PURCHASED DURING JANUARY, 1922, BY CLASSES. I 1J ankers' acce pta nces. j Trade acceptances. : TOW urns Federal Reserve Bank. ' §7,724,615 ! 35,112,897 i 5,574,860 " 1,8.13,438 ' 170,000 1,387,940 : 13,572,413 278,503 , j i i ' | , i '• ; : i. 2,795,308 ^ ; Dollar i exchange. ! 86,542,289 10,394,668 2,500,039 1,449,150 928,000 1,007,236 5,353,207 601J 551 Total.. Domestic. 8260,000 !$14,526,904 3,71.8,450 ' 49,226,015 804,000 8,878,899 45,000 3,307,588 ' 1,098,000 ' 2,395,176 483.688 19,409,308 .....! 880,054 20,000 | ; r "739,"386 T " ; January, 1.921..1 77,992.228 32,275,174 .I.)ecember,1920- L77,656,948 \ 63,555,187 j : , Percent Amount. i of total. Total. S44.147 • ....'.....• '' , 20,000 Ii5,36C)"]" 3,650,(Vvi 1,787 ! ; 71.787 ! 44,147 208,664 ' 10,858,001 121,125,403 i 1,073,284 11,239,769 252,451,904 i 1,1.20,968 7.64 25.34 87,909,340 26,230,138 11,721,351 2,663,859 1 .-477,812 i 1,098,000 ! 2,395,176 4>11,887 ! 19,409.308 44,050,647 1,731,585 i 880,054 [814,526,904 i 19,226,015 $44,147 \ 8,923,046 i 3,307,588 20,000 j Total: January, 1922.. 68,429,974 i 29,535,526 ', 5,426,498 103,391,998 December,1921. 155,482,374 ; 53,331,146 j 21,079,169 229,892,689 1 bU3K1 -•' purchased. Foreign, i Domestic. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis. Kansas City Dallas....." San Francisco Total reduced to a common maturity 71,787 11.33 2. 57 1, 43 4.-19 42. 56 1.67 .02 23,457 *3*72L84T *3,"6f)i.*856": 115.931 :103.507,032 103.507.032 208,664 230.101,353 " 2/95 100.00 69.801 1,1-13,085 ' 1.22.268,488 2ooi 000 • 1,375,968 |253,827,872 Total purchases multiplied by ratio of average maturity of bills purchased by each bank to average inaiunly (31.61) for system. VOLUME OF ACCEPTANCES PURCHASED DURING JANUARY, 1922, BY RATES OF DISCOUNT CHARGED; ALSO AVERAGE RATES AND MATURITIES. Federal Reserve Bank. Boston New York.. Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis. Kansas City. Dallas. San Francisco. Total: January, 1922.... December, 1921. Federal Reserve Bank. Boston New York Philadelphia. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis.. Kansas City.. Dallas. ; 3} per cent. 3J per cent, j 4 per cent, j4jV per cent.j 4i per cent. ; A\ per cent.' 4$ per cenl. 4J per cenl; $2,005,975 , ! I ! • i .1 1 ' ! i i 25,000 ; •I- I- , 85,640,154 ! -S3,339,046 7,512,810 2,061,832 1,916,015 • 296,371 ; 616,242 . 1,978,389 ! $29,140 "I" 10,700,996 I. ! 97,881 j 15,737'. , $337,392: •I- 120,000 20,167,957 i 1,209,130 i 1,283,076 ; 29,140 49,378 526,599 24,852,381 j 9,651,393 ! 2,680,156 54,068,217 i 32,252,5-48 ; 12,634,039 $79,181 5,000 I §25,000 20,000 105,530 3,051,852 84,181 i 1,220,983 I 68,536 130,000 409,016 3,550,831 4,029,033 TOW. 814,526,904 49,226,015 8,923,046 3,307,588 1,098,000 2,395,176 19,409,308 880,054 835,000 1,098,000 2,329,295 105,000 39,616.864 120,421; 785 day basis). Per ccM. \ 4.20 : 4.47 ]: 4. 10 4.27 5.07 I 5.05 i 4.13 , 3. 90 Days. 17. 54 16.85 41.53 25.46 42.55 61.31 71.75 62.21 20,000 5.07; 37.08 3,721,841 '4*32'; "25*95 53,251 103,507,932 186,500 ^ 230,101,353 4.28 ' 4.41 ! 31.61 23.39 $53,251 Includes $60,500 and $1,766,880 of acceptances purchased at 51 and 5& per cent, respectively. NOTE.—All Federal Reserve Banks use 360 days to the year in calculating interest on bills bought in open market. §289,306 39,257,126 50,000 20,432 500,778 51,750 4$ per cent. 4} per con 1.1 4£ per cent. 5 per cent. 5& per cent. i $32,200 23,952 8486,487 318,955 290,200 505,387 65,881 =. 1,611,651 ; 377,294 • 6,595,883 356,249 i 337,392 ! 2,248,856 San Francisco. Total: January, 1922... December, 1921. §2,654,555 51,340 6,345,460 43,620 • ', 345 FEDERAL RESERVE BULLETIN. MARCH, 1922. HOLDINGS OF EARNING ASSETS, BY CLASSES. Following is a set of tables giving a detailed analysis of the different classes of earning assets held by the Federal Reserve Banks at the end of January, 1922: AVERAGE DAILY HOLDINGS OF EACH CLASS OF EARNING ASSETS, EARNINGS THEREON, AND ANNUAL RATES OF EARNINGS DURING JANUARY, 1922. Average daily holdings of— Federal Reserve Bank. : All classes of earning assets. Discounted Purchased bills. bills. Earnings o n - United States securities. All classes of earning assets. Discounted bills. Annual rate of earnings on— Pur- I United States ™!f of ;counted chased securibills. +V/i "' earning! bills. ties. assets. ! Purchased bills. \Per cent Per | 883,164,494: 842,229,543.810,566,8481830,368,103 $307,005 8162,120i 837, 728 8107,157! 4.35 ! 270,457,485: 160,815,091 36,559,362^ 73,083,032 625,204! 142, ""- .193,257; 961,186 4.18: 106,852,081= 75,906,729- 14,108,097 16,654,481. 382,910 290,327i 50, 40,795 4.21 114,923,243 406,001! 95,404,389 4,775,428 14,743,426; 462,488 39,080, 4.74 I 95,440,744. 87,255,559. 3,191,785 4,993,400 381,432 404,520 4.99; 99,867,047: 79,655,201 3,749,935 16,461,911 352,272! 414,273 45,352! 4.88' 204,026,172 156,875,243 12,893,373 34,257,556; 828,626i 68(),386: 4.78 ,958 103,2821 59,289,406. 51,059,716 305,635 7,924,055 217,842; 233,831 :,054 14,9351 4.64 49,586,0001 45,078,000' 220,650l! 212,720 . i 4,465,000 5.24 7,739 76,201,668 270,826' 300,550 61,269,376 933 26,463, 4.64 616,178 14,238,695 52,631,555 48,072,539 229,448 29,516! 4,529,500 238,405 138 5.33 8,819' 91,694,175: 65,349,786. 11,944,808 14,399,581 360,307 277,897j 4.63 796 38,614; Boston New York Philadelphia Cleveland Richmon d Atlanta. Chicago St. Louis Minneapol is Kansas City 1 )allas San Francisco II Tol al: Jan., 1922.... 1,304,134,070 968,971,172. 98,740,965 236,118,740 5,114,751 4,106,475: 372,758 634,122! Dec, 192.1 1,517,194,027,1,185,431,602 105,499,127 226,005,""" 6,109,243 5,144,494; 402,917 56(),640: Jan., 1921 Dec, 1920 3,034,655,353 2,536,104,523 200,913,063 297,637,767 15. .,154,34913,568,1521. ,048,344 537,853: 3,313,502,262 2,730,360,460 244,001,410 339,140,392 16i 792,813'14,844,052; ,250,273 i; ;, cent Per cent'.Per cent 4.52 4.20! 4.16 4.58 4.60l 3.11 4.50 4.24; 2.88 4.29; 5.01 3.12 5.33" 5.L 2.03 5.23, 5.21 3.24 4.11 5.11 3.55 5.02 2.22 5.56 2.04 5.20 2.19 5.62 5.49 2.29 5.01 3.16 4.32' 4.621 4.74 4.99! 5.11 4.50: 3.16 2.92 5.88 5.98 6.30 6.42 6.14: 6.05 2.13 2.43 4.44 1 NOT!.:.—The figures for Philadelphia, Minneapolis, and Kansas City banks include average daily holdings of municipal w;arrants, earnings and annual rales of earnings thereon as follows: Philadelphia, 8182,774, 8877, and 5.65 per cent; Minneapolis. 843.000, 819J, and 5.10 per cent; Kansas City, 877,419, 8328, and 5 per cent: total, 8303,193, 81,396, and 5.42 per cent. HOLDINGS OF DISCOUNTED BILLS, BY CLASSES. [End of January figures. In thousands of dollars.] Member banks' Custom- . collateral notes. . ers' paper1 secured !v — Federal Reserve Bank. Total. obligations. ' " """ Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas " San Francisco Total: Jan. 31, 1922 Dec. 31, 1921 Jan. 30, 1920 Dec. 30, 1920 "" " j I i : j ! Commer- AgriLivecial paper, cultural stock paper. paper. n. e. s. Trade acceptances. Foreign. Foreign. Domestic. Domestic. i : 39,018 123,636 79,019 • 74,733 . 81,966 71,139 1.22,861 41,173 40,997 53,998 45,494 64,851 838,885 " 1,144,347 , 2,252 : 957 i 6,985 '. 2,268 : 1,874 ' 2,360 2,289 . 1,438 221 1,193 313 1,016 23,166 " 41,611 ! 2,174,357 ; 317,688 2,719,134 ' 271,526 ! wise Bankers' acceptances. : 13,411 94,206 51,524 30,195 89 34,771 985 16,487 : 214 41,996 597 13,364 I 69 6,020 I 1,510 11,783 . 7,532 " 1,642 19,802 j 11,731 341,091 ! 443,723 1,140,204 ! 869,510 | 16,837 17,785 6,427 17,907 22,439 26,855 19,588 38,216 33,222 38,417 37,650 17,224 6,034 14,446 8)293 j 18,332 180,716 mn 452,199 .t "o 751 8<J6 778 929 547 18 9,277 978 11,559 39,829 7,491 20,913 : 6,098 i, i o± 7,781 ii 18,753 15,121 I 11,621 6,377 ; 7,235 121,702 i 45,919 129,036 ' : 49,670 j ion AOI:; AI\ /»TM 608,283 23,212 I 33,693 \ 1,274,606 .143,145 j 103,795 \ 165 722 144 l, 989 1 819 i 124 500 487 201 42 723 358 500 249 249 50 931 j 288 | 19,964 ! . . . . 17,218 I'"" 5 | 8,274 9! 24,886 21,427 346 FEDERAL RESERVE BULLETIN. M A S C H , 1922. HOLDINGS OF BANKERS' AND TRADE ACCEPTANCES PURCHASED OR DISCOUNTED, BY CLASSES OF ACCEPTANCES. [End of January figures. In thousands of dollars.] I— Federal Reserve Bank. Total. Boston NewYork Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas... ..* San Francisco | j | ! Total: .Tan. 31, 1922 Dec. 31,1921 Purchased in open market: Jan. 31,1922 Dec. 31,1921 Discounted for member banks: Jan. 31, 1922 Deo. 31,1921 i ! . ;. j. j 23,654 14,205 5,867 4,324 4,103 1.5,840 987 201 103 987 5,749 8,204 22,932 14,061 3,378 2,505 2,979 15,340 76,013 49,470 145,383 I 84,389 i 155,586 i 1 . 74,935 145,263 74,833 345,045 9,454 I 10,323 I 1,180 338 694 : 2,040 j 1,909 ! 45 I 3,263 5,355 3,298 1,441 1,846 1,514 2,658 475 4,247 165 8,204 722 15,509 22,904 8,854 144 14,061 2,392 2,489 3,878 2,505 659 1,819 2,979 1,465 1,124 15,340 I 11,749 500 500 25 918 201 61 . 42 249 972 264 I 4,321 | 358 I 5,317 ! 61 15 632 364 20,558 34,250 165 722 144 1,989 1,819 1,124 500 487 201 42 723 361 5,985 11,164 19,627 49,221 99,919 I 33,962 249 j 50 i 8,376 i 10,203 : 5,985 ! 11,164 | 931 ! i 99 | 223 i 102 I 218 | 8,277 9,980 218 8.274 L.. 8,274 9,980 9', 985 I HOLDINGS OF BANKERS' ACCEPTANCES PURCHASED OR DISCOUNTED, BY CLASSES OF ACCEPTING INSTITUTIONS. [End of January figures. In thousands of dollars.] Member banks. Federal Reserve Bank. Total. National. Boston NewYork.... Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total: Ja n. 31, 1922 Dec. 31, 1921 Purchased in open market: Jan. 31,1922 Dec. 31, 1921 Discounted for member banks: Jan. 31,1922 Dec. 31,1921 8,204 22,904 14,061 3,878 2,505 2,979 15,340 500 5,693 ! 7,924 ! 5,733 i 687 I 2,500 i 745 I •7,301 i 226 1 j Nonmem- ; I bcr banks j Private 1 and bank- I | ing cor- | banks. Nonnational. j p orations, j 2,225 ; ! 8,297 4,652 j 1,772 . 37! 2,333 ! 1,722 I 362 2,234 '.'. 6,907: 27-1 : . 958 ; "249"L 452 I 61 264 5,317 61 15 2,429 1,627 : 76,013 145,383 33,314 60,210 27,993 i 50,342 ; 74,833 145,045 33,101 60,173 27,275 ! 50,091 I 1,180 213 37 718 ' 251 : 6,113 i 13.706 i ! 5,864 I 13,656 i 249 . 50 : Branches and agencies of foreign banks. 2-19 i 970 ! 855 I 105 I 121 286 3,380 1,099 952 53 523 2,586 ! 32,319 I 6,007 8, 806 - 2,586 12,319 6,007 8,806 MARCH, 347 FEDERAL RESERVE BULLETIN. 1922. BANKING CONDITIONS DURING JANUARY AND FEBRUARY, 1922. Continuous loan liquidation by reporting operations in connection with the allotment on member banks, as well as Federal Reserve February 1 of $601,600,000 of Treasury notes. Banks, offset in part by increases in their invest- On February 16 about $256,000,000 of loan ments in Government securities, mainly Treas- certificates fell due, but apparently the larger ury notes, and a substantial increase of Gov- part of these certificates had been received ernment balances held by the member banks before maturity in payment for the newly WEEKLY C VIANGES IN PRINCIPAL ASSET• < I AND LIABILITIES >1 FEDERAL RESERVE BANKS 1 2 3 4 5 RESERVE RATIO TOTAL DEPOSITS CASH RESERVES F. R. NOTE CIRCULATION PURCHASED ACCEPTANCES 6 U. S. SECURITIES _ DISCOUNTS SECURED BY U.S.GOVERNMENT OBLIGATIONS 8 TOTAL DISCOUNTS 9 TOTAL EARNING ASSETS MILLIONS or DOLLARS 3000 MILLIONS OF DOLLARS REPORTING MEMBER BANKS 1 2 3 4 5 LOANS SECURED BY U.S. OBLIGATIONS 6 OTHER LOANS (Largely Commercial) U.S. GOVERNMENT OBLIGATIONS 7 NET DEMAND DEPOSITS ACCOMMODATION A T F. R. BANKS 8 TOTAL LOANS STOCKS, BONDS E T C . 9 TOTAL LOANS AKD INVESTMENTS LOANS SECURED BY STOCKS AND BONDS BILLIONS BILLIONS OF OF DOLLARS 17 DOLLARS 17 9 9 V 3000 16 V 2500 A 16 \ \ 2500 1 v \ V V 15 \ 2000 \ \ Y 1500 \ 2000 VA -\ s 14 14 13 8 13 c 1500 \ \ 12 7 ' • . 1 500 o 5 «. » - k 1000 s v \ 500 7* 9 #. & -- ^*A A / A. — i 10 9 \ > \ 8 • ^ y "s •X f 3 *v 6 0 >X \\ \ 10 IE \\ RESERVE RATIO 3000 - % \ "\ MILLIONS OF DOLLARS 2500 % 11 - - 1000 \ 15 J PER. CENT 100 y "V 8 i N •*« ! 7 7 6 I 90 6 j 2000 ,2 4 80 «.' 5 j 70 4 i 60 1500 1 50 3 5 40 1000 30 20 560 10 J. F. M.A.M. J. J. A.S.O. N. D. J. F M. A. M. J. J. A.S. 0. N. 0. . 1921 1922 are the leading features of development in the banking field during the four-week period ending February 15 and 21, respectively. Some of the changes, notably those in meiiiber bank investments in Government securities and in Government deposits, are traceable to fiscal 4 3 4 2 5 ••* • > 2 1 — s" ^*. -— - !! "- 2 - • • 1 " ^ . J. F. M.A M . J . J . A . S . O . N. D. J. F. M.A.M. J. J. A . S . O . N. D. 192! 1922 issued Treasury notes, so that the effect of these operations is reflected but little in changes of condition of either the member banks or the Federal Reserve Banks. The return movement of currency, mainly Federal Reserve notes, characteristic of the early part of the year, has 848 FEDERAL RESERVE BULLETIN. practically ceased, and both reserve note and deposit liabilities of the Federal Reserve Banks show only moderate decreases for the period under review. An increase for the period in the reserve ratio from 77.2 to 78.1 per cent is due largely to the gain in gold by the Federal Reserve Banks* Loans secured by Government obligations (socalled Government paper) show a continuous reduction, totaling $28,000,000 foi the period. Loans secured by corporate obligations fluctuated between a low of 83,074,000,000 on January 25 and a high of $3,129,000,000 on February 8, the February 15 total of $3,126,000,000 being $19,000,000 in. excess of the January 18 total. All other loans and discounts, comprising largely commercial and industrial loans followed a downward course (luring the first three weeks of the period under review, but increased by about §62,000,000 during the week ending February 15. Loans and discounts of reporting member banks on the latter date aggregated $10,930,000,000, marking a decrease of $85,000,000 for the four weeks under review. United States bond holdings of the reporting institutions show an increase for the four weeks of $10,000,000, while Victory note holdings of these banks show a decline of $48,000,000 on February 1 and of an additional $7,000,000 on the following Wednesday, these decreases apparently representing largely the amounts of notes tendered to the Government in payment for Treasury notes of the February 1 series. Investments in these notes show an increase of $247,000,000 in the February 1 member bank statement. During the following two weeks the banks distributed"substantial amounts of the newly acquired notes among their customers, reducing their maximum holdings by $52,000,000. Treasury certificate holdings show an increase of $4,000,000 for the period, while investments in corporate and other securities totaled $4,000,000 less at the close of the period than at its beginning. In consequence of the changes noted, loans and investments of the reporting member banks on February 15 aggregated $14,684,000,000, an increase of $73,000,000 for the period. This increase is accompanied by increases of $237,000,000 in Government deposits and of $44,000,000 in time deposits, as against a decline of $11,000,000 in other demand deposits. Borrowings of the reporting institutions from the Federal Reserve Banks show a further decrease during the four weeks from $468,000,000 to $378,000,000, or from 3.2 to 2.6 per cent of the banks' aggregate loans and investments. But little change is seen in the borrowings of member banks in New York City from the local reserve bank. MARCH, 19 ik-. Of the total discounts of all Federal Reserve Banks the amount held for reporting banks, i. e. member banks located in the larger cities, constituted 48.1 per cent on February 15, compared with 51.2 per cent four weeks earlier and 78.1 per cent about a year ago. Notwithstanding the decrease in borrowings from the Federal Reserve Banks and in their net demand deposits, reserve balances of the reporting members show a practically continuous increase for the period of $66,000,000. Cash in vault shows a further decline of $18,000,000, the February 15 total of $270,000,000 being 2.6 per cent of the net demand deposits of all reporting institutions, as compared with slightly over 3 per cent on the corresponding date of last year. In the following table are shown the principal changes in the condition of reporting member banks during the four weeks ending February 15. Corresponding changes since the beginning of 1921 are traced on the chart on page 347. MOVEMENT OF PRINCIPAL ASSETS AND LIABILITIES OK 'REPORTING MEMBER BANKS. [In millions of dollars.] Jan. Jan. IS. ' 25. Number of reporting banks Loans and discounts: Secured by U. S. Government obligations l Secured by stocks and bonds (other than. U. S. Government obligations) All other i Feb. i Feb. 1. : 8. 806 : 804 800 807 470 . 451 450 i Feb. 15. 444 ; .'{, 107 : 3,074 7,438 j 7,394 3.1LH i 3,129 7,315 j 7,300 3,12(> 7,302 Total loans and discounts l . . 11,015 10,919 10,878 10,873 ,10,930 U.S. bonds 995 997 999 U. S. Victory notes 189 134 188 141 U. S. Treasury notes 120 322 120 367 U . S . certificates of indebtedness... 204 224 198 : 230 Other bonds, stocks, and securities. 2,095 2,112 , 2,093 2,091 Total investments. 3,596 • 3,615 . 3,830 ' 3, 766 998 142 315 208 2,091 3,754 Total loans and discounts and. investments l 14,611 14,534 ; 14,708 14,639 .14,084 Reserve with F. II. Banks Cash in vault Net demand deposits Time deposits Government deposits | 1,267 i 288 110,332 ! 3,018 : 186 Bills payable and rediscounts with F. R. Banks, total Secured by U . S . Government • obligations • All other Ratio of accommodation at F. R. ! Banks to total loans and in- I vestments 1 : 1,250 : 278 :10,271 3,021 ' 168 ; 1,285 1,308 1.333 , 260 279 270 ,10,298 10,236 10,321 . 2,979 3,004 3,062 350 450 423 468 409 .400 395 378 216 252 : 187 222 194 206 202 193 172 206 3. 2 s 2. 8 . 2. 7 2.7 2.6 Including bills rediscountcd with Federal Reserve Banks. Figures for the Federal Reserve Banks which cover the four-week period between January 25 and February 21 show further liquidation of $128,900,000 of discounted MARCH, FEDERAL RESERVE BULLETIN. 1922. bills, the greater part, viz, $75,900,000, representing bills secured by Government obligations. Over 80 per cent of the Government paper held by the reserve banks on February 21 was paper secured by United States bonds, mainly Liberty bonds, about 9 per cent paper secured by Victory notes, less than 3 per cent paper secured by Treasury notes, and a little over 8 per cent paper secured by Treasury certificates. Holdings of acceptances purchased in open market fluctuated between $94,300,000 on February 8 and $82,600,000 on February 21, the latter amount differing but little from the amount reported four weeks earlier. United States bonds and notes showed an increase during the first three weeks of $59,900,000, most of the Federal Reserve Banks, notably those of New York, Cleveland, Chicago, and Kansas City, reporting substantial increases under this head through purchases of Victory notes and newly issued Treasury notes.- Pittman certificates on deposit with the Treasury to secure Federal Reserve Bank note circulation show a further reduction of $16,000,000 while other Treasury certificates, largely held by the Boston, New York, Cleveland, and Chicago Federal Reserve Banks, show an increase of $62,500,000 for the period. Total earning assets on February 21 stood at $1,159,000,000, marking a decline of $24,100,000 for the four weeks and of $1,695,100,000 since February 25 of last year. In the subjoined table are given the weekly changes in the principal assets and liabilities of the Federal Reserve Banks for the four weeks under review. Similar changes since the beginning o 1921 are presented on the chart on page 347. MOVEMENT OP PRINCIPAL ASSETS AND LIABILITIES OF THE 12 FEDERAL RESERVE BANKS COMBINED. [In millions of dollars.] Jan. | Feb. 25. Reserves: Total Gold i 1. Feb. Feb. 15. Feb. 21. ..3,058.9 ;3,061.5 3,062.6 3,07"). 9 j 3,080.8 ..;2,904,2 !2,911.5 2,921.4 2,936.1 j2,946.8 Bills discounted: •. Total 850.2 837.8 823.5 785.6 721.3 Secured by U. S. ; Government obligations 357.9 !i 361.1 361.9 327.6 i 282.0 All other 492.3 476.7 461.6 458.0 439.3 78.3 ; 82.6 Bills bought in open market.. 82.7 i 90.0 94.3 259.0 Certificate of indebtedness... 184.3 214.7 232.2 230.7 Total earning assets jl, 183.1 il, 233.5 1,260.0 1,248.7 11,159.0 Government deposits Members' reserve deposits Total deposits F. H. notes in circulation F. It. Bank notes in circulation—net liability Reserve percentage j 95.9 '1,652.3 ,1,778.8 |2,184.0 j ! 84.9 | 77.2 i | 114.7 112.7 79.3 ! 63.9 1,689.4 1,714.7 1.744.4 1,677.0 1,858.5 1.857.5 1,772.2 % 178.1 2,166.2 2,170.0 :2,173.5 j 83.5 83.0 ; 81.2 ' 83.9 ! 76.2 76.1 76.4 : 78.1 ;1,840.5 ! 349 Reserve deposits show a gradual rise from $1,652,300,000 on January 25 to $1,744,400,000 on February 15, followed by a decline to $1,677,000,000 on the following Tuesday. Government deposits reached a high total of $114,700,000 on February 1, the date of issue of the most recent series of Treasury notes. Since then a gradual decline to $63,900,000 is noted. Federal Reserve note circulation on February 21 aggregated $2,173,500,000, a decrease of $10,500,000 for the four weeks, compared with a decrease of $39,000,000 for the corresponding period in 1921. On the other hand, the Federal Reserve Banks report a decrease of $20,600,000 in reserve cash other than gold, the amount representing largely greenbacks and silver certificates issued by reserve banks to meet the increased demand for currency of the smaller denominations. Gold holdings of the Federal Reserve Banks show a further gain for the four weeks of $42,600,000 and at the close of the period reached a record total of $2,946,800,000. Besides the actual gain in gold there may be noted considerable shifting of gold holdings through the gold settlement fund among the Federal Reserve Banks, six of the banks reporting increases and six decreases in their gold reserves for the four weeks under review. Chicago shows the largest increase, viz, of $38,200,000, Atlanta being next with an increase of $32,000,000, while smaller increases aggregating $29,900,000 are reported by the Kansas City, Dallas, Minneapolis, and Richmond banks. Boston reports the largest decrease in gold holdings for the four weeks, viz. $28,000,000, followed by New York with a decrease of $22,100,000, while smaller decreases aggregating $7,400,000 are shown for Philadelphia, San Francisco, Cleveland, and St. Louis. Since February 25 of last year gold holdings of the Federal Reserve Banks have increased by $806,500,000, the largest accretion for the period, viz, $689,300,000, being shown for the New York bank. Chicago shows an addition to its gold holdings of $100,400,000, San Francisco an addition of $95,400,000, while smaller additions aggregating $65,500,000 are shown for the Atlanta, Minneapolis, Philadelphia, Kansas City, and St. Louis Federal Reserve Banks. Cleveland reports a decrease in gold holdings for the period of $65,000,000, Boston a decrease of $57,300,000. Richmond a decrease of $21,400,000, and Dallas a nominal decrease of about $400,000. Decreases in the goldieserves of the Cleveland and Boston banks are due in part to the return of their reserve notes for redemption by other Federal Reserve Banks. 350 FEDERAL RESERVE BULLETIN. MAKCH, 1922. In the following table are shown comparative percentages for the months of January and figures of average daily cash reserves, deposits, February, 1922, as compared with data for Federal Reserve note circulation, and reserve the same months in 1919, 1920, and 1921. CASH RESERVES, TOTAL DEPOSITS, FEDERAL RESERVE NOTE CIRCULATION, AND RESERVE PERCENTAGES FOR FEBRUARY AND JANUARY, 1922. [Daily averages. Amounts in thousands of dollars.] Total cash reserves. j Total deposits. Federal Reserve notes in circulation. Reserve percentages. February. I January. February, j January. Federal Reserve Bank. February. January, j February. January. 119,837 727,201 105,342 134,367 57,048 48,849 244,386 68,422 44,479 74,101 45,776 131,181 L 183,233 626,865 187,815 202,570 100,973 115,521 383,910 89,889 54,712 65,804 33,188 227,577 Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St, Louis Minneapolis Kansas City Dallas San Francisco... 237,351 211,545 j 1,130,814 ! 1,158,375 216,613 208,920 j 249,372 259,900 71,541 78,788 78,046 103,590 472,027 456,292 114,035 119,090 I 62,792 68,088 88,072 79,881 35,902 43,370 ! 287,241 i 283,784 • 123,427 709,388 | 105,399 ! 139,062 ! 57,421 50,632 250,486 70,179 46,014 75,512 49,004 137,322 Total, 1922. 3,070,045 ! 3,043,984 1,814,446 1,800,989 2,170,529 | 2,272,057 76.9 \ 2,287,274 2,098,498 2,164,167 1,804,476 2,002,503 1,855,124 1,822,600 2,027,861 1,825,147 3,068,578 i 3,177,656 2,946,863 2,887,846 2,462,941 i 2,540,642 149.6 ' 143.3 i 52. 5 1921. 1920. 1919. 2,343,537 2,053,422 2,183,641 i 1 Calculated on basis of net deposits and Federal Reserve notes in circulation. 160,707 i 622,185 : 185,356 ; 193,661 ! 95,670 ' 109,650 i 364,244 ! 84,999 52,252 ; 61,871 : 30,148 ! 215,786 i 78.3 85.5 73.9 74.0 45.3 47.5 72.6 72.0 63.3 57.1 45.5 79.1 74.5 ; 84.9 ! 71.9 ! 78.1 i 51.5 i 63.4 ; 76.8 1 77.1 . 68.9 | 64.1 ! i 54.8 81.4 ; 74.7 l 47.5 144.9 152.0 351 FEDERAL RESERVE BULLETIN. MARCH, 1922. CONDITION OF FEDERAL RESERVE BANKS. RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON WEDNESDAYS, FEB. 1, 8, 15, AND ON TUESDAY, FEB. 21, 1922. RESOURCES. [In thousands of dollars.] Total. Gold and gold certificates: 385,044 Feb.l 382.418 Feb. 8 382,260 Feb. 15 381,673 Feb. 21 Gold settlement fund—F.R. Board: 509,163 Feb.l 514,110 Feb. 8 531,354 Feb. 15 520,681 Feb. 21 Gold with F. R. agents: 1,928,419 Feb.l 1,942,725 Feb. 8 1,940,665 Feb. 15 1,977,602 Feb. 21 Gold redemption fund: 88,872 Feb.l 82,099 Feb. 8 81,775 Feb. 15 66,847 Feb. 21 Total gold reserves: 2,911,528 Feb.l 2,921,352 Feb. 8 2,936,054 Feb. 15 2,946,803 Feb. 21 Legal tender notes, silver, etc.: 149,990 Feb.l 141,277 Feb. 8 139,886 Feb. 15 134,006 Feb. 21 Total reserves: 3,061,518 Feb.l 3,062,629 Feb. 8 3,075,940 Feb. 15 3,080,809 Feb. 21 Hills discounted: Secured by U. S. Government obligations— 361,092 Feb.l... 361,900 Feb. 8. Feb. 15 j " " " Feb. 21 All other— Feb.l Feb. 8 Feb. 15 Feb. 21 Bills bought in open market: ! Feb.l Feb. 8 i Feb. 15 : Feb. 21 i U. S. bonds and notes:: Feb.l i Feb. 8 ! Feb. 15 i Feb. 21 i U. S. certificates of indebtedness: One year certificates (Fittrnaii Act)— Feb.l '• Feb. 8 Feb. 15 j Feb. 21 ! All other— : Feb.l Feb. 8 ' Feb. 15 i Feb..21 ; Municipal warrants: ; Feb.l Feb. 8 Feb. 15 Feb. 21 : New York. Boston. Phila- Clevedelphia. land. 289,068 i 286,890 ! 286,244 i 285,045 j 7,672 7,773 7,855 7,945 42,410 35,687 25,518 24,247 2,037 I 2,085 2,082 2,117 Richmond. Atlanta, Chicago. Louis. Minne- Kansas Dallas. apolis. City. 2,823 2,846 2,862 2,877 5,135 5,188 5, 111 5,151 22,281 22,513 22,630 22,808 3,511 3,536 3,569 3,584 9,241 9,258 9,276 9,304 48,987 44,877 51,783 | 46,229 51,022 ! 57,316 51,475 46,104 78,412 54,376 53,005 71,979 i 13,266 12,332 12,361 12,414 27,157 33,173 31,728 29,439 21,423 26,559 32,056 31,425 88,557 98,265 109,400 100,308 29,634 31,406 34,053 22,426 31,877 | 52,314 312,011 29,969 53,545 321,840 27,942 59,917 327,115 26,386 68,561 332,778 2,551 2,587 2,575 2,585 Francisco. 8,259 8,475 8,635 19,199 18,935 19,060 19,144 28.249 34,'457 31,968 34,126 42,911 ; 11,185 41,812 j 17,673 45,702 15,813 52,917 18,140 45,391 39,690 43,773 38,095 72,967 71,927 75,213 75,666 24,021 23,898 23,136 22,746 32,159 32,266 31,336 ' 30,415 10,822 11,475 10,925 10,296 217,223 223,112 218,947 216,112 1,743 2,591 2,143 1,551 2,141 2,056 2,606 2,991 2,736 2,232 I 2,779 i 3,401 2,084 1,336 1,821 2,392 5,065 7,986 4,936 3,758 ! 137,929 135,448 132,880 131,412 711,967 i 138,823 186,306 711,797 ! 135,412 189,036 711,647 j 100, ou» 185,099 136,508 i»;>,uyy / ii, 0-1/ 741,396 134,896 , 186,938 14,509 16,957 19,493 10,913 5,684 2,890 6,750 4,815 6,677 8,246 9,943 11,128 4,087 j 25,839 3,504 i 12,887 3,868 | 10,517 2,979 4,727 250,133 250,487 261,526 250,271 68,534 74,234 72,475 82,960 88,796 458,505 100,952 469,662 108,116 j 460,621 8,497 8 256 7,260 6,650 6,778 6,565 10,000 i 8,307 10,000 i 11,414 10,000 i 6,919 10,000 8,192 202,520 195,865 185,746 174,517 1,089,447 1,063,063 1,060,896 1,108,420 198,154 200,694 196,531 196,680 23,564 24,950 24,785 24,378 48,613 43,059 40,366 36,271 9,176 9,089 8,697 226,084 220,815 210,531 198,895 1,138,060 1,106,122 1,101,262 1,144,691 208,019 209,870 205,620 205,377 327,641 281,994 15,850 14,511 12,997 12,262 92,442 111,432 86,258 54,168 476,726 461,553 457,979 439,289 26,810 27,378 26,683 33,053 90,027 94,255 78,287 82,564 90,709 109,919 125,633 124,299 7,961 258,630 258,743 269,856 258,232 107,855 63,652 112,460 69,669 114,978 66,986 103,227 ! 69,167 80,357 78,897 82,392 89,318 32,350 286,878 38,959 289,723 37,194 286,716 39,527 277,109 I 15,979 14,812 14,056 13,635 13,720 i 12,761 I 14,247 j 15,040 I 654 850 800 723 6,943 6,151 6,781 6,282 5,947 5,742 5,900 4,610 4,512 4,588 4,559 75,794 87,298 464,667 il(\ OU4 OQ IRA 80,884 93,154 473,317 79,253 105,118 483,718 76,395 112,208 474,256 121,575 i 125,221 ! 129,225 118,267 64,306 70,519 67,786 69,890 87,300 85,048 89,173 95,600 38,297 44,701 43,094 45,330 291,488 294,235 291,304 281,668 4,338 4,358 4,166 4,092 58,934 i 31,504 56,629 30,492 59,502 29,411 55,182 j 25,834 36,444 34,339 34,999 34,717 18,468 18,560 16,106 14,374 43,237 39,391 35,238 34,620 15,232 13,468 13,572 11,175 6,073 5,799 5,486 5,170 14,139 13,754 10,301 7,675 6,733 6,471 6,189 21,094 16,798 17,300 19,468 26,770 41,345 54,531 46,805 19,073 13,131 20,472 18,793 44,365 46,623 43,969 39,040 45,590 43,636 41,823 42,442 51,138 49,661 43,448 38,861 81,207 69,451 64,491 63,207 26,179 23,640 24,364 24,075 31,387 33,413 32,395 32,003 40,250 36,939 33,750 31,572 37,346 35,626 33,777 33,665 43,611 40,710 38,276 35,773 8,424 7,817 11,784 12,611 36,560 40,402 19,277 23,007 15,857 17,539 17,229 16,971 3,275 2,415 2,310 2,535 2,504 2,459 2,364 2,135 2,819 2,945 2,390 2,271 15,247 15,689 16,161 16,813 303 999 1,469 1,269 61 58 45 46 15 15 15 15 4,962 3,917 5,243 4,891 3,449 3,469 3,569 3,476 24,714 29,452 37,017 30,622 11,765 14,044 14,475 14,654 6,534 11,556 11,561 14,861 1,233 1,233 1,233 1,233 2,829 916 116 164 15,166 16,674 21,124 22,583 1,714 2,853 4,133 4,340 220 181 240 180 9,038 13,885 17,381 2,630 2,630 2,630 2,630 11,417 13,026 12,154 12,118 8,040 6,000 6,000 6,000 3,760 3,560 3,560 3,560 8,564 7,866 7,866 7,866 I 12,667 j 8,667 I 8,667 j 8,667 6,569 4,071 4,071 4,071 4,450 4,350 4,350 4,350 5,320 5,320 5,320 5,320 18,806 25,025 24,793 27,482 300 1,468 4,747 5,544 ' i S ! I 113,000 98,466 98,466 96,966 101,702 133,723 160,499 133,743 206 193 . 193 191 8,450 j 8,450 8,450 8,450 25,581 26,706 26,816 26,334 35,400 33,900 33,900 32,400 47,695 69,215 92,397 61,857 10,000 i 8,000 | 8,000 8,000 27 27 27 27 191 191 191 191 8,870 10,345 10,355 11,581 380 j 4.06 : 833 ! 15 i 2 j 2 i 42 520 520 45 1,900 I 1,900 1,900 1,900 7,880 6,382 6,382 6382 10 10 10 352 FEDERAL. RESERVE BULLETIN. MAKCH, 192.;. RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON WEDNESDAYS, FEB. 1, 8, 15, AND ON TUESDAY, FEB. 21, 1922—Continued. RESOURCES—Continued. [In thousands of dollars.] Total earning assets: Feb.l.... 1, 233,462 Feb.8 1, 260,015 Feb. 15 1, 248,698 Feb. 21 |1, .159,046 Bank premises: Feb.l Feb.8 Feb. 15 Feb. 21 Five per cent re- ! demption f u n d : against F . R. Bank j notes: i ! Feb.l Feb.8 i Feb. 15 Feb. 21 Uncollected items: Feb.l > ; Feb.8 Feb. 15 Feb. 21 All other resources: Feb.l Feb.8 Feb. 15 Feb. 21 Total resources: Feb.l Feb.8 Feb. 15 Feb. 21 186,330 174,897 170,474 173,372 83,81.9 79,949 69,927 63,537 1,055 7,084 1,076 " 7,085 • 1,082 ; 7,129 1,089 : 7,129 68,850 70,476 67,317 63,256 643 643 643 643 828 828 828 871 4,740 4,740 4,740 4,740 2,Oi-0 2,091 2,099 2,101 83 \ 831 884 S34 136 136 136 136 394 394 394 394 502 638 506 551 1,527,965 .1,535,117 1,558,920 1,505,808 1, 664 1, 665 1, 665 1, 665 523 523 523 2,023 220 297 365 296 916 916 916 916 21,194 21 , 119 23 191 22, 550 63,867 52,958 70 739 61, 1 5 8 26,980 25,449 28,268 29,068 13,239 10,975 12,638 11,552 32, 152 32,266 34,326 33,716 151 95 114 83 274 107 98 137 49,566 88,964 46,904 '. 8(),8-t3 44,793 ' 79,365 44,399 ' 78,6;2 50,297 • • 45,525 46,499 = 44,151 43,306 52,356 42,565 50,474 516 520 715 810 194 223 278 296 974 1,033 1,045 1,009 294 318 362 355 412,161 207,529 19.1,019 ;724,128 200,2.12 4.14,413 i 206,783 196,031 I710,4-.;2 1^8,558 433,886 • 205,914 199,938 734,440 j 211,293 109,710 202,316 200,021 718,717 i 200,771 125,012 194,552 127.803 1/J3,764 125,908 ! 196,831 126,183 198,583 30,725 22,033 22,019 ! 32,853 26,473 . 39,366 24,143 34,303 2,349 2,590 2,675 2,044 5,986 6,074 6,074 6,084 114,471. '• 418,391 118,441 : 415; 233 119,270 I 4.1.7,337 118,156 401,925 LIABILITIES. Capital paid in: 7,966 I 26,958 8,748 11,134 ! Feb.l 103,200 26,958 8,748 11,134 Feb.8 103,233 27,029 8,748 7,969 11,133 Feb. 15 103,325 27,049 8,817 7,969 11,343 i Feb. 21 103,685 Surplus: 60,197 17,945 I 22,509 16,-1 §3 Feb.l 215,398 60,197 17,945 I 22,509 16,483 Feb.8 215,398 60,197 16,483 17,945 j 22,509 Feb. 15 215,398 16,483 60,197 17,945 ! 22,509 Feb. 21 215,398 Reserv e d for G over n mentfranchise tax: 122 142 j 170 Feb.l 1,250 153 191 ' 204 ! Feb.8 1,548 189 180 . 249 Feb. 15 1,504 100 226 Feb. 21 1,317 Deposits: Government— I 5,455 11,745 504 50,255 Feb.l 114,744 4,636 6,713 ; 16,237 41,397 ! Feb.8 112,717 6,380 6,821 I 13,587 20,542 Feb. 15 79,316 4,592 1,469 ! 5,362 25,335 Feb. 21 63,910 Member bank — reserve account— 662,370 103,999 131,800 i Feb.l 1,689,422 ! 116,250 686,330 99,987 136,131 Feb.8 1,714,668 '• 110,590 689,778 97,092 144,554 Feb. 15 1,744,430 111,308 650,439 93,754 130,632 • Feb. 21 1,677,011 110,791 All other— 760 ! 1,066 15,203 Feb.l 36,304 | 765 1,016 11,408 Feb.8 31,111 870 1,378 Feb. 15 33,728 ! 1,080 ! 11,849 773 , 1,033 Feb. 21 31,260 873 . 11,734 Total deposits: ; 727,828 105,569 i 141,015 Feb.l 1,840,170 i 129,071 Feb.8 1,858,496 I 127,585 , 739,135 105,639 ' 143,609 1 " Feb. 15 .(1,857,474 125,975 . 722,169 104.850 j 152,245 ! GO', 379 1 .132,874 Feb. 21 1,772,181 : 117,026 ! 687,508 F . R. notes in actual circulation: Feb.l 2,178,053 1 166,679 i 614,031 181,448 ! 192,826 Feb.8 2,166,179 ! 163,136 ' 615,027 182,439 i 192,920 Feb. 15 2,169,953 I 159,685 ! 621,792 1 185,907 192,625 I Feb. 21 12,173,514 I 158,721 ! 626,544 I 185,669 193,598 5,458 5,460 5463 4,201 ! 4,215 i 4,215 4,215 ! 1J,439 i 14,451 14,458 14,480 j 9,114 1 29,025 9,114 ! 29,025 ! 9,1.14 29,025 '• 9,114 29,025 ; 11,030 11,030 11,030 11,030 242 274 298 339 162 216 21.8 252 4,606 4,604 4,604 4,622 3.552 3', 556 3.555 3.556 4.578 4; 580 4,600 4,191 4,189 4,194 4,195 7,370 7,371 7,377 7,376 9,388 9,388 9,388 I 9,388 7,468 7,468 7,468 7,468 9,646 9,646 9,646 9,646 7,394 7,394 7,394 7,394 15,199 15,199 15,199 15,1.99 1.40 154 163 185 70 122 98 86 114 i 114 3,872 5,425 10,744 ! 3,397 i 5,255 i 8,810 2,635 '• 3,145 ! 3,870 5,834 i 2,909 ; 3,330 4,946 2,554 6,165 2,892 239,541 ! 237,754 ' 245,843 ; 240,564 I 63,708 66,093 71,365 67,645 452 5,218 : 822 415 2,324 ! 710 503 3,692 I 805 442 I 345 2,729 : 752 503 i 443 j 46,641 i 255,503 = 69,476 59,217 50,377 I 248,888 I 69,357 57,778 52,786 i 252,680 78;335 57,859 52-, 817 ! 246,202 , 71,289 56,716 j 362,961 ! 86,089 j 360,925 . 84,323 ' * 364,388 85,017 I 365,719 i 84,023 53,348 53,939 53,486 52,943 42,317 44,707 49,648 46,638 i 96,944 96,379 94,431 94,505 i 110,835 J 109,438 j 108,943 I 109,259 •i,577 I 5,594 4,680 2,315 1,553 2,148 5,058 3,413 3,278 9,453 9,742 7,740 4,155 41,000 43,934 42,533 44,228 69,015 70,258 73,326 76,034 42,929 44,960 42,708 45,757 120, 115 119, 985 122, 789 117, 086 509 477 502 503 693 580 769 900 608 747 785 813 9,453 11,469 10,992 10,362 46,112 48,649 45,738 •17,932 75,302 75,518 76,410 78,487 45,685 J39,051 50;705 141,196 46.906 141,521 4<V, 848 132,1.03 52,639 52,526 52,162 52,027 62,676 62,223 61,355 61,493 31,247 30,507 29,895 29,657 4,603 I 4,238! 2,703 3,201 219,678 216,336 213,753 212,299 353 FEDERAL RESERVE BULLETIN. MARCH, 1922. RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON WEDNESDAYS, FEB. 1, 8, 15, AND ON TUESDAY, FEB, 21, 1922 -Continued. LIABILITIES—Continued. [In thousands of dollars.] RichSt. mond. Atlanta. Chicago. Louis. Boston. F. R. Bank notes in circulation—net liability: Feb.l Feb. 8 Feb. 15 Feb. 21 Deferred availability items: Feb.l Feb. 8 Feb. 15 Feb. 21 All other liabilities: Feb.l Feb. 8 Feb. 15 Feb. 21 Total liabilities: Feb.l e Fb 8 Feb. Feb. 15 Feb. 21 83,888 7,984 83,507 8,017 82,988 8,221 81,165 I 8,180 414,475 388,650 494,582 425,437 Minne- Kansas apolis. City. Dallas. Francisco. 3,127 3,058 3,063 3,009 6,777 6,564 6,190 6,214 7,843 7,933 7,987 8,062 4,003 3,827 3,679 3,577 3,829 3,837 3,715 3,686 9,607 9,550 9,662 9,623 2,667 2,582 2,540 2,488 4,889 4,760 4,688 4,808 36,018 33,027 38,279 36,391 15,188 15,768 15,839 i 16,290 ,851,922 ,832,779 ,941,063 ,788,987 75,374 70,084 101,365 83,012 47,231 36,317 53,763 40,617 38,068 37,560 48,650 42,656 31,019 32,274 33,249 30,746 15,507 15,322 17,690 17,397 50,320 45.161 6i;999 51,225 26,013 26,388 29,611 27,175 10,328 10,598 12,173 10,343 31,882 31,365 34,358 33,904 21,696 21,395 26,824 23,044 31,019 29,159 33,621 28,927 810 811 860 881 3,270 3,527 3,395 438 475 488 649 706 726 756 982 572 588 601 595 702 727 702 666 3,923 3,945 3,903 4,004 565 607 597 654 1,024 1,015 994 986 792 762 725 744 1,591 1,609 1,517 1,530 1,176 1,203 1,169 1,204 368,384 359,059 379,753 3ol,039 412,161 414,413 433,886 409,740 194,019 196,031 199,938 200,021 724,128 710,442 734,440 718,717 200,212 125,092 198,558 127,803 211,293 125,968 200,771 126,183 194,552 193,764 196,834 198,583 114,471 118,441 119,270 118,156 418,391 415,233 417,337 401,925 365,018 357,105 357,510 345,728 . 527,965 , . 535,147 , .,558,920 .,505,808 207,529 208,783 205,914 j 202,316 MEMORANDA. Ratio of total reserves to deposit and F . R . note liabilities combined—per cent: Feb.l Feb. 8 Feb. 15 •. Feb. 21 Contingent liability on bills purchased for foreign correspondents: Feb 1 Feb. 8 Feb. 15 Feb. 21 76.2 76.1 76.4 78.1 76.4 j 76.0 ! 73.7 72,1 2,336 2,336 2,336 2,336 32,263 32,240 32,256 32,260 84.8 81.7 81.9 87.1 12,007 11,984 12,000 12,004 72.5 , 72,9 ' 70.7 72.0 ! 2,560 2,560 2,560 2,560 77.5 76.9 78.2 79.1 48.5 52.5 52.0 50.5 55.4 58.3 65.0 69.2 75.1 77.6 78.4 77.5 78.2 81.5 79.1 76.1 65.1 69.7 69.2 69.9 63.3 61.7 64.7 68.3 49.8 55.0 56.1 57.1 82.0 81.8 2,624 2,624 2,624 2,624 1,568 1,568 1,568 1,568 1,152 1,152 1,152 1,152 3,808 3,808 3,808 1,504 1,504 1,504 1,504 864 864 864 1,536 1,536 1,536 1,536 832 832 832 832 1,472 1,472 1,472 1,472 81.3 MATURITY DISTRIBUTION OF BILLS, CERTIFICATES OF INDEBTEDNESS, AND MUNICIPAL WARRANTS HELD BY THE 12 FEDERAL RESERVE BANKS COMBINED. [In thousands of dollars.] Total. Bills discounted: Feb.l : Feb. 8 Feb. 15... Feb. 21 Bills bought in open market: Feb.l Feb. 8 Feb. 15 Feb. 21 United States certificates of indebtedness: Feb.l Feb.8 Feb. 15 Feb. 21 Municipal warrants: Feb.l Feb.8 Feb. 15 Feb. 21 92371>—22 7 Within 15 days. 16 to 30 31 to 60 days. 61 to 90 days. Over 90 days. 837,817 823,459 785,615 721,283 492,041 500,208 485,495 428,670 87,361 81,307 75,271 74,039 119,719 113,179 104,904 109,593 91,344 82,558 77,396 67,644 47,352 46,207 42,549 41,337 90,027 94,255 78,287 82,564 51,708 49,096 28,665 29,473 13,089 16,768 19,161 22,050 14,677 16,743 15,137 15,289 10,187 11,431 15,011 15,633 217 313 119 214,702 232,189 258,965 230,708 26,527 35,019 23,768 1,884 2,009 2,000 35,999 39,302 34,773 9,294 9,671 15,449 3,200 38,165 2,700 2,700 148,193 147,711 186,827 171,373 206 193 193 191 2 142 140 140 140 51 51 51 51 354 FEDERAL RESERVE BULLETIN. MARCH, 1922. FEDERAL RESERVE NOTES. FEDERAL RESERVE AGENTS' ACCOUNTS ON WEDNESDAYS, FEB. 1, 8, 15, AND ON TUESDAY, FEB. 21, 1922. [In thousands of dollars.] New I Phila- CleveYork. j delphia. land. RichSt. mond. Atlanta, Chicago. Louis. Minneapolis. Dallas. 64,532 I 83,295 64,089 81,403 62,827 80,473 63,797 80,152 56,141 55,295 54,744 54,115 318,507 315,196 312,312 313,555 i Net amount of F . R. notes received from Comptroller of the Currency: Feb. 1 Feb. 8 Feb. 15 Feb. 21 F. R. notes on hand: Feb. 1 Feb. 8 Feb. 15 Feb. 21 F. R. notes outstanding: Feb. 1 Feb. 8 Feb. 15 Feb. 21 Collateral security for F. R. notes outstanding: Gold and gold certificates— Feb. Feb. Feb. Feb. 1... 8 15 21 3,515,117 303,316 11,162,805 252,690 256,643 3,496,610 300,835 ;11,174,441 249,280 251,873 3,467,738 298,267 1,172,400 245,375 249,336 3,458,017 296,799 1,171,091 243,764 247,076 131,596 129,688 128,160 128,564 192,234 189,964 188,336 189,480 561,347 554,175 546,450 542,113 132,011 130,371 129,058 127,511 39,000 38,300 37,300 35,800 28,575 27,155 27,655 27,805 75,581 75,386 74,296 74,811 155,280 156,280 150,280 143,080 25,460 25,460 25,260 25,060 8,875 9,180 8,855 9,055 13,440 13,440 11,990 11,490 21,240 21,630 21,530 21,610 48,300 48,300 52,010 50,810 103,021 102,533 100,505 100,759 116,653 114,578 114,040 114,669 406,067 397,895 396,170 399,033 106,551 104,911 103,798 102,451 55,657 54,909 53,972 54,742 69,855 67,963 68,483 68,662 34,901 33,665 33,214 32,505 270,207 266,896 260,302 262,745 955,461 971,601 960,766 947,441 129,240 129,600 130,200 130,650 360,710 378,510 378,510 376,010 2,559,656 2,525,009 2,506,972 2,510,576 174,076 171,235 168,067 166,149 802,095 795,931 793,890 795,081 202,930 | 217,643 200,920 : 213,573 202,495 212,036 202,504 211,276 344,013 344,013 344,012 344,012 5,600 5,600 5,600 5,600 296,925 296,924 296,924 296,924 13,375 13,376 13,375 i 13,375 12,329 19,848 17,280 15,812 34,042 33,873 33,723 33,472 Gold redemption fund— Feb. 1 122,166 Feb. 8 134,397 Feb. 15 123,374 Feb. 21 123.729 Gold fund—F.R. Board— Feb. 1 1,462,240 Feb. 8 1,464,315 Feb. 15 1,473,279 Feb. 21 1,509,861 Eligible p a p e r Amount required— Feb. 1.... 631,237 Feb. 8....! 582,284 Feb. 15... ! 566,307 Feb. 21...J 532,974 Excess amount! held— ! Feb. 1.... 260,411 Feb. 8...J 304,523 Feb. 15... i 261,247 Feb. 21...i 234,354 San Francisco. Kansas City. 120,000 381,000 130,000 i 381,000 110,000 1 381,000 110,000 411,000 49,760 48,360 42,880 41,260 13,434 I 10,023 ! 11,119 14,507 . 12,931 15,660 11,724 13,563 | 125,389 j 160,000 125,389 :! 160,000 125,389 160,000 120,389 ; 160,000 5,960 13,052 1 5,960 13,052 ! 5,960 ; 13,052 5,960 13,052 2,400 2,400 2,400 2,400 3,582 4,674 2,647 4,091 4,914 5,645 4,017 3,161 28,295 25,295 25,295 22,295 45,000 45,500 53,500 63,000 64,339 61,033 54,123 46,108 | 94,056 : J 73,055 69,055 66,255 33,584 32,984 28,585 26,785 7,749 9,803 7,503 9,064 45,635: 51,458 I 46,836 ! 48,287 I 8,124 5,112 10,820 9,699 36,147 35,787 35,187 34,737 90,128 84,134 82,243 53,685 64,107 65, 508 65,987 67,608 31,337 24,537 26,937 24,338 71,144 72,564 72,563 74,373 14,937 13,919 16,277 23,189 48,869 93,099 61,077 52,609 15,182 9,887 17,298 9,164 47,807 54,709 48,653 43,071 10,654 : 7,101 ; 2,821 i 1,801 : 15,367 14,196 15,471 15,134 4,307 4,667 2,953 3,4.06 1,799 2,637 1,906 ! 3,290 2,976 I 2,740 2,055 1 2,111 15,055 18,989 16,840 14,923 1,484 1,484 1,484 1,484 202,168 204,143 202,107 201,189 ! 31,636 j 37,696 24,079 31,011 i 35,697 22,190 30,836 37,147 I 22,289 31,996 38,247 | 22,209 52,984 43,784 41,355 46,633 , I 16,676 20,751 15,054 i 20,150 6,937:' 17,861 2,185 | 17,660 16,507 17,458 19,162 13,310 1,769 1,646 1,884 1,494 9,200 296,644 ! 62,700 310,644 i 61,300 . 9,200 , i , , 311644 i 66300 : 8,200 311,644 i 66,300 : 8 2 0 0 317,644 j 66,300 j 6,701 ! 6,701 1 6,701 ! 6,70.1 8,200 8200 7,520 6,773 6,002 4,315 30,360 30,360 28,360 355 FEDERAL RESERVE BULLETIN. MARCH, 1922. CONDITION OF MEMBER BANKS IN LEADING CITIES. PRINCIPAL RESOURCES AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES ON WEDNESDAYS, FROM JAN. 25 TO FEB. 15, 1922. ALL REPORTING MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT. [Amounts in thousands of dollars.] Clevc- ! RichAtland. mond. > lanta. Number of reporting banks: 49! 107 Jan. 25 806| 107 Feb.l 807 108 Feb. 8 807| 108 Feb. 15 Loans and discounts, including bills rediscounted with F. R. Banks: Secured by U. S. Government obligations— 450,892! 27,265 164,197 Jan. 25 449,7341 30,668 158,324 Feb.l 443,632! 29,142 155,575 Feb. 8 441,727; 27,520 161,467 Feb. 15 Secured by stocks and bonds (other than U. S. Government obligations)— 3,074,170. 221, 6261L329.101 Jan.25 3,112,865 213, 60511,387,725 Feb.l 3,129,004, 223, 3011L,362,949 Feb.8 Feb. 15 3,125,795! 217, 0731;1,370,162 All otherJan .25 7,393,467! 554.S 2!, 467,120 514 Feb.l 968 2! 7,315,444 558. S 2,454,184 Feb.8 7,300,518! 554,791 2,462,245 Feb. 15 7,362,6811 565, 534 2,466,571 or 2 Total loans and discounts, including bills rediscounted with F. R. Banks: Jan. 25 10,918,529 803, 405 3,960,418 Feb.l 10.878,013, 803, 241 1 1,000,233 Feb.8 id, 873,1.54 807 234 Z 5,980,769 Feb. 15 10,930,203, 810, 1273: 3,998,200 U. S. bonds: Jan. 25 997,1331 47,985 395,761 Feb.l 48,217 404,150 998,525 Feb.8 994,836! 48,719 400,918 Feb. 15 48,513 401,181 997,684 U. S. Victory notes: j Jan.25 3,882 103.600 188,076 Feb.l 3,493 69,086 141,387, Feb.8 3,210 71,332 134,287; Feb. 15 74,115 141,960' U. S. Treasury notes: Jan. 25 120,430 4,576 82,323 Feb.l 366,543' 14,902 164,481 Feb.8 322,340 16,435 172,989 Feb. 15 315,05oi 16,683 167,578 IT. S. certificates of indebtedness: 197,613 128,936 Jan. 25 230,547| 7,685 137,788 Feb.l 224,017 6,814 122,068 Feb.8 207,739j 6,138 117,54L Feb. 15 Other bonds, stocks, and securities: 2.111.963! 144,533 746,649 Jan.25 2,092,675 139,275 744,594 Feb.l 2,091,066 142,258 737,822 Feb.8 2,090,869 ! 142,387 737,969 Feb. 15 Total loans and discounts and investments, including bills rediscounted with F. R. Banks: 14,533,7441,011,009 5,417,687 Jan. 25 114,707,720' 1,016,813 5,520,332 Feb.l 14,639,700 1,024,67()l5,485,898 Feb.8 114,683,510 1,027,207 5,496,584 Feb. 15 Reserve with F. R. Banks: 1,250,355 77,302 596,031 Jan. 25 81,873 604,756 1,285,175. Feb.l 75,508 630,145 1,308,450' Feb.8 76,794 633,850 1,333,056 Feb. 15 Cash in vault: 19,261 89,641 278,480 Jan. 25 266,108 18,21.4: 84,456 Feb.l 278,695 18,1281 90,995 Feb.8 269,880 Feb. 15 17,626 87,382 Net demand deposits: 756,51714,682,791 Jan. 25 1 Feb.l 10,270,792 760,245:4,71.5,214 Feb.8 il0,297,990 741,85414,636,253 Feb. 15 10,235,655 747,359)4,680,770 10,320,674 i ! Chica ! San Minne- Kansas Fran" ° - Louis. apolis. Citv. Dallas, j cisco. 110 110 HO! 110 47,454 46,686 45,773 44,382 45,833 45,333! 44,450! 42,663 18,572 17,722 17,902 17,563 13,898 13,479 13,369 12,920 205,221 196,853 214,238 206,695 320,111 318,423 323,439 328,118 108,515 107,984 107,990 106,893 53,571 54,534 55,278 53,524 66 68 16,767 18,435 16,521 16,616 9,797 9,527 11,471 15,078 15,720 14,970 14,813 5,422 5,360 5,530 5,388 19,428 18,956 21,763 18,242 435,471 123,211 434,578 123,916 443,722 123,761 121,798 32,332 33,145 32,302 32,642 63,649 64,217 63,703 63,151 39,783 39,596 41,000 41,663 141,579 138,289 137,321 140,783 67,181 69,524 67,166 70,467 319,051i 615,453! 315,538 292,3491,062,618 321,15l! 609,8511 314,081 288,8971,058,957 320,620 608,290J 316,188 283,904:1,048,854 327,520| 632,279; 313,468 289,0461,051,271 294,058 292,429 295,774 298,778 204,01.9 200,935 199,394 201,893 353,676 350,864 350,502 349,287 189,846 189,991 188,328 189,556 725,225 675,136 671,628 677,478 571,726 981,397. 564,690: 973,607' 580,631' 976,179 578,597;l,003,060| 434,036 246,148 434,780 243,607 436,056! 2.13,167 437,192! 244,221 432,403 430,801 429,175 427,251 235,051 234,947 234,858 236,607 886,232 832,381 830,712 836,503 18,620 19,327 18,796 19,315 35,669 34,611 36,218 36,416 32,973 34,914 34,646 34,706 104,655 95,384 96,486 98,061 710 2,922 3,391 3,047 3,069 1,242 1,285 1,210 1,214 13,685 12,998 11,303 11,284 547! 1,207518 5,820 3,245 13,969 3,988 3,125 10,946 3,815 3,685 10,644 1, 1,708 4,289 3,787 10,049 15,699 14,698 19,780 442,625 439,787 442,080 437,924 359,8181, 565,270 356,910(1, 503,059; 352,55l| 1, 559,742! 355,490jl, 565,031j 47,684 47,884! 48,057 47,751j 118,130| 122,657: 120,7501 120,980 61,665 61,387 61,463 61,341 26,967' 27,3611 28,354! 26,570J 79,777i 76,013j 75,084: 76,850| 15,099. 12,8941 7,922 8,560, 18,367! 15,461! 16,261 17,077j 2,035 1,965 2,040 2,160 1,151: 1,3461 1 137 1,153 21,907! 15,438: 12,060 15,122 5,18725,103., 22,484] 19,175 j 2,768j 21,642! 20,539; 18,595| 4, , ! 7,575 376i 94,566 5i 032 2,303 43,197 7,347 2,033 41,795 7,485 6,885! 8,815"8.9801 8,443| 7,825! 10,320: 9,893! 9,835! 2,280 5,487 4,093 3,316 1,189 1,673! 5,064; 3,439! 48,419 268,087! 48,505 273,226 48,343 275,948! 47,854 35,270i 35,831, 35,589 35,768: I 165,483 162,639, 162,253 163,037, 4<JO, vot\ 812,0641,397,471! 822,025,1,411,774 830,3271,416,848! 825,563:1,445,495; 561,112 562,163 565,366 560,080| 62,232! 68,324. 63,100: 59,284' '86,1771 92,514 93,297i 99,881 33,973 31,781, 32,168 31,848 14,561: 13,467; 14,938, 14,666 25,935 25,292 28,070 25,874 13,992! 13,084J 622,056! 614,523i 623,839 612,914, 770,217 769,514 789,000 776,3811 304,679 4,679 300,816 305,076 303,3981 27,247 "26,620 25,345 26,000 3,476| 3,6651 4,157 4,238 609 4,657 6,317 6,370 5, 4,216 10,632 10,073 3,486 8,773 5,959 4,985 3,264 3,381 5,850 4,478 13,556 15,425 22,369 19,374 382,457! 383,917! 68^ 499| 381,844 68,436 rtl 382,554 20,767 20,534 20,633 21,390 47,275 46,236 46,656 46,732 9,091 9,037 9,199 9,183 174,006 165,521 164,807 158,389 14,691 14,251 16,484 15,615j I , 424,39523,071,6771 423,497 2: 147,244' J, 2,088,411! 424,998 2, .,___. 424,453 2,096,967: ! 26,001: 164,347j 26,025' 179,762i 27,940 178,524! 32,554' 185,511| 538,9921 291,66! 522,273 545,701! 297,71 537,781 544352 29640 532,001 529,097 283, 2131, ,202,183 285, 2721 ,137,408 290, 0521 ,140,375 289i 9751,143,391 43,593 41,286i 44,374 49,160 18,895 18,388 21,027 19,550 40,909 40,517 41,587 44,114 20,597 21,126 22,813 20,835 80,298 78,823 77,967 79,675 49,460! 48,794i 48,894 49,21l! 6,634 6,620 6,636| 6,603] 6,412 6,178! 7,174 " 11,870 10,954 11,767 11,321 9,332 9,330 9,283 9,502 21,992 20,044 19,850 20,271 222,9531,260,480 ! 224,370:i,286,785! 223,89511,287,6291 229,326,1,312,794; 309,318! 308,723! 312,973; 320,360! 175,030 175,290 174,941 176,257 372,034 372,354 374,029 383,207 9,316! 10,057! 8,968! 8,246j 190,998 603,719 189,769 580,387 192,166 574,000 196,534 581,374 356 FEDERAL RESERVE BULLETIN. MARCH, 1922. PRINCIPAL RESOURCES AND BIABILITIES OF MEMBER BANKS IN LEADING CITIES ON WEDNESDAYS, FROM JUNE 25, TO FEB. 15, 1922—Continued. ALL REPORTING MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT—Continued. [Amounts in thousands of dollars.] Total. Time deposits: Jan. 25 Feb.l Feb. 8 Feb. 15 Government deposits: Jan.25 Feb.l Feb. 8 Feb. 15 Bills payable with F. R. Banks: Secured by U. S. Government obligationsJan.25 Feb.l Feb. 8 Feb. 15 All otherJan. 25 Feb.l Feb. 8 Feb. 15 Bills rediscounted with F.R. Banks: Secured by U. S. Government obligations— Jan.25 Feb.l Feb. 8 Fob. 15 AU otherJan. 25 Feb.l Jan. 8 Feb. 15 New Phila- Cleve- Rich- AtBoston. York. delphia. land. mond. lanta. Chicago. San Francisco. MinneSt. Louis. apolis. 3,021,337 2,979,403 3,003,848 3,061,970 183,565 185,941 186,824 187,742 480,013 486,463 491,607 509,919 47,308 47,234 47,562 47,966 425,539 425,923 430,105 465,269 130,973 130,413 130,516 130,164 143,321 141,428 145,395 143,239 648,472 647,536 653,582 656,401 155,196 156,49o| 156,4481 155,996| 76,205 76,276 75,613 76,609 105,020 105,341 105,731 105,256j 61,486 59,596 62,513 62,870 564,239 516,757 517,952 520,539 168,462 350,490 450,272 422,896j 12,753 33,709 34,611 34,559 66,005 163,647 165,726 165,476 17,701 37,615 37,595 21,645 18,286 18,286 47,325 46,257 4,897 5,053 12,919 12,841 4,251 7,665 12,775 12,775 20,713 21,108 59,704 58,203 4,177J " ~ 13,641 13,742 4,760 13,709 13,700 13,165 #147 15,147 15,147 3,684 3,730 11,429 11,429 7,266 24,735 25,700 17,657 170,651! 181,217, 186,628] 157,014J 4, 4,170 3,050 2,380 62,784 71,977 92,145 66,279 19,892 21,395 19,878 23,137 14,259 14,885 14,474 14,264 20,105 18,192 16,400 17,515 5,467 6,185 5,675 4,130 20,697 17,371 13,294 9,450 5,894 4,042 3,200 3,734 1,037 953 993 . 996 3,719 6,603 6,526 3,596 2,218 2,409 1,848 1,765 9,890 13,035 9,145 9,768 325 410 610 360 349 354 299 285 52 52 52 52 382 460 3,384 300 837 j. 1,136. 1,266'. 27 27 27 84 145 14; 2001. 185 155 soo;. 16,215, 13,277! 15,567 14,609! 1,018 221,590 204,415 191,615| 205,804 14,024 19,191 20,376 20,697 1,6 187 479 772 1,222 5,331 6,378 5,819 6,255 2,077 1,194 651 587 1,2 947; 794 2,104 1,493 1,390 1,078 1,! 353 587 1,288 1,161 1,001 682 812 50; 87| 77| 73 745 706 608 520 26,020 17,459 32,487 46,643 12,265 6,810 14,360 39,199 34,876 37,346 35,742 23,305 21,929 20,917 19,433 17,822 16,039 13,398 12,854 34,157 28,772 18,883 16,099 16,173 13,425 11,128 11,859 5,008 3,8U 3,144 2,703 19,307 17,566 14,449 12,032 5,145! 5,263j 4,434| 12,448 13,819 8,243 9,516 MEMBER BANKS IN FEDERAL RESERVE BANK CITIES. Number of reporting banks: Jan. 25" Feb.l. Feb. 8 Feb. 15 Loans and discounts, including bills rediscounted with F . R. Banks: Secured by U. S. Government obligationsJan. 25 Feb.l Feb.8 Feb. 15 Secured by stocks and bonds (other than.U.S. Government obligations)— Jan. 25 Feb. 1 Feb.8 Feb. 15 All other— Jan. 25 Feb.l Feb.8 Feb. 15 Total loans and discounts, including bills rediscounted with F.R. banks: Jan. 25 Feb.] Feb.8 Feb. 15 U.S. bonds: Jan. 25 Feb. 1 Feb.8 Feb.15 U.S. Victory notes: Jan. 25 Feb.l Feb.8 Feb. 15 ! 275 275 275 275 15 15 15 15 | 13 13. i 145,505 140,455 137,958 143,626 44,496 43,768 42,916 41,222 12,646 12,653; 12, 54l| 12,209 3, 3, 3, 785 3,738 1,942 1,976 1,909 1,905 52,156 55,187 52,824 55,809 10,607 12,424 10,790 10,811 6,301 6,088 6,057 5,974 5,164; 5,102| 4,785: 4,659 1,497 1,543 1,538 1,513 7,187 6,389 9,212 6,094 2,196,540 2,229,023 2,245,269 2,237,740 ,159,696 176,696 1, ., 168,406 I! 214,161 178,0361.,191,874 ., 171,6941 196,813 , 184,960 176,434 193,994 185,958 126,308; 124,773 126,146 126,244 15,409 15,427 15,460 15,414 9,766 9,759 9,551 9,619 319,626 319,188 328,640 328,800 92,219j 92,739. 92,894: 92,8831 13,882 14,843 14,976 14,822! 20,613 20,685 20,830 20,400 10,113 10,391 10,478 10,750 67,252 62,217 62,390 64,343 4,71.7,963 1,625,828 4,616,382 4,671,887 416,692 2,1831,609 420,946"!, 173,327 " 414,403 2,175,657 4 2 6», " 1,178,407 / 141 2. 286,899 289,11.5 288,253 294,612 263,572 258,4411 259,940! 287,724 60,628 61,086 63,095 62,009 49,806 50,053 50,212 50,617 074,400 667,150 660,017 662,729 174,570 174,509! 177,741! 178,6281 91,263 91', 890. 92,458! 92,6731 1.23,747 122,478 121,732 122.220] 46,884 40,480 45,429 45,318 342,893 27) 353 2G7,445 270,809 7,228,500 7,170,432 7,170,594 7,220,172 3. 615, 888 «,, 488,810 615,455 3,527,943 617,""" ",,505,489 067 3. 620, 8 3! 518,846 820 ;, 516,355 509,317 525,163 521,792 402,526i 395,867-! 398,627 i 426,177 80,033 80,406 82,340 81,161 61,5 .14 1. 048,182 277,390! . , 61,7: I! 788 .041,525 279.6721 672 . 61,6' 1, Oil, 481 281^425; ' 62,141 1,047,338 282,322 114,440 112,82,1 113,491 113,409 149,524 148,265; 147; 347! 147,279! 57 58. 494 58; 414 > 44<"> 57, 581 417,332 338,959 339,047 341,246 313,997 315,581 308,943 310,545 22,500 26,103 24,628 22,985 547,357 539,330 537,939 540,504 15,953 15,583 16,077 15,533 347,044 353,828 350,5271 349,998 34,037 34,249 34,427: 34,026 12,749 12,728 12,873 13,787 6,851 6,854 6,849 6,938 4,31.1 4,311 4,318 4,327 23,120 24,273 23,773 25,135 11,627, 11,330 10,149 11,095, 4,473 4,690 4,872 4,677 12,839, 11,0891 12,38o| 12,665* 7,885 7,884 7,896 7,915 66,468 52,511 53,793 54,408 128,767 89,841 84,767 91,463 1,587 1,248 951 998 96,207 61,734 64,128 66,730 13,049 10,833 5,880 6,588 266 253 251 356 6 6 6 6 5 5 3 3 7,787 6,140 5,565 8,750 2,0531 2,520: 2,999:. 3,1031 137 137 137 679 1,194 121 199 125 129 6,870 5,572 3,863 3,832 580! 357 FEDERAL RESERVE BULLETIN. MARCH, 1922. PRINCIPAL R E S O U R C E S A N D LIABILITIES O F M E M B E R B A N K S I N LEADING CITIES O N W E D N E S D A Y S , F R O M J U N E 25, TO FEB. 15, 1922—Continued. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES-Continucd. [Amounts in thousands of dollars.] | Total. ! Boston. U. S. Treasury notes: Jan. 25 Feb.1 Feb. 8 Feb. 15 U. S. certificates of indebtedness: Jan. 25...'. Feb. l Feb.8 Feb. 15 Other bonds, stocks, and securities: Jan. 25 Feb. J. Feb. 8 Feb.15 Total loans and discounts and investments, including bills rediscountcd with F. JR. Banks: Jan. 25 Feb. 1 Feb. 8 Feb. 15 Reserve with F. K. Banks: Jan.25 Feb.I Feb. 8 Feb. 15 Cash in vault: Jan.25 Feb.] Feb. 8 Feb.15 Net demand deposits: Jan. 25 Feb.l Feb.8 Feb. 15 Time deposits: Jan. 25 Feb.l Feb.8 Feb.15 Government deposits: Jan.25 Feb.l Feb.8 Feb.15 Bills payable with F. R. Banks: Secured by IT. S. Government obligationsJan. 25 Feb.l Feb.8 Feb. 15 All other: Jan. 25 Feb.l Feb.8 Feb. 15 Bills rediscounted with F. V.. Banks: Secured by U. S. Government obligationsJan. 25 Feb.l .... Feb.8 Feb. 15 All otherJan.25 Feb.l Feb.8 Feb. 15 90.003 285,173 240,918 236,755 2,116 10,186 11,011 11,746 153, . 172,390! .159,982 150,100 3,058 4,411 3,381 3,067 1,171,897 .1,150,215 1,141,522 1,140,295 68,453 63, 148 65,868 65,477 New York. I Philadelphia, Clevcland, Richmond. 4,568 23,536 21,190 17,940 570 3,892 2,841 2, 756 730 874 447 276 123,980 6,198 131,416' 8,089 116,354 7,335 112,334 7,340 873 1,211 797 781. 441 349 841 561 . 741 362 1,971 1,999 132,527 129,718 129,512 130,343 58,315 59,308 60,861 63,733 3,569 3,599 3,637 3,588 3,216j 3,216 8,216 3,206 706,734 715,742 723,507 718,029 475,299 473,259 476,250 507,590 90,90.1 91,944 94,547 92,701 77,930 156,802 164.595 159; 218-' 570,093' 567,214; 558,443! 557,402 Minne- Kansas apolis. City. Dallas. Atlanta. 3,076 69,678 24,527 24,361 29 3,763 2,026 1,775 4,241 6,144 5,512 5,835 6,440 5,458 5,679! 5,121 San Francisco. 10,296 7,373 7,021 27 1,009 2) 365 2,363 1,686 5,155 3; 516 8,851 95 3,: 3,119 2,852 426 2,911 573 590 1,496 1,613 3,687 2,301 6,195 6,873 10,026 7,475 1,420 1,356 1,249 1,251 96,543 84,216 82,325 173,519 174,736 173,353 173,856 45,030 44,200 44,269 45,0S6 8,465 8,451 8,493 8,503 10, 1.1,053 10,296 10,179 69,7S7 ! J,259,828 69,8081.1,322,1.87 71,180! 1,275,139 71,9521,285,119 340,376 346', 997 346,326 348,502 127,616! 129,907! 130,112! 129,890 174,215 184,808 178,833 178,314 31,487 30,624 32,733 37,453 9,333 8,523 10,535 9,607 14,369 15, 124 14,245 15,047 4,979 4,923 5, 593 5,001 34,757 30,080 29,989 32,816 i 9,320,412 9,407,38J 9,335,722, 9,379,289J 707,055 4,704,064 710,031 4,798,937 714,955 4,759,536 717,641 4,764,528 914.617 949)917 959,650 980,141 62,110 67,167 60,760 6.1,450 553,129i 562,281585,3641 586,994 55,851 61,665 57,327 53,632 24,210 28,914 27,382 33,664 6,550 5,8.11 5,063 5,798 4,051 4,349 4,415 4,493 156,537 i 145,482 153,194 149,785 10,640 9,852 9,470 8,883 78, .1.79 73,635 78,987 75,9l9i 11,919 10,693 12,167 11,787 6,293 5,834 6,050 6,792 1,033 897 954 838 1,763 1,740 1,718 1,444 29,456 28,453 28,754 29,170! 3,1 3,058 3,137 3,046 2,118 1,851 2,144 2,055 2,586 2,352 2,596 2,252 1,475 1,424 1,504 1,568 7,988 5,693 5,713 6,031 7,258,008 7,268,7841 7,189,163' 7,245,3111 594,300 598,200 578,368 582,290 ,212,339 ,247,320 ,169,276i ,200,699: 542,408 534.505 544; 796 534,388 193,934 196,208 204,054 196,811 48,567 46.994 46.682 47)790 35,894 35,142 34,267 36,409 870,020 889,4421 888,079| 909,833 216,516 215,032 217,407 225,152 81,464 81,524 82,391 81,890 136,554 135,491 135,808 137,613 50,184 49,743 50,335 53,206 275,828 239,183 237,700 239,230 1,408,461. 1,343,208 1,349,2081 1,402,633, 73,891 75,336 75,904 76,381 302,355 304,272 305,541 321,253! 31,458 31,712 31,988 32,327 231,373 232,398 232,577 267,246 23,450 22,973 22.995 23,122 21,645 21,656 21,791 21,761 312,419! 311,230! 314,7461 314,376! 90,148 90,496 90,355 90,202 26,872 26,890 26,940 27,134! 13,875 13,855 13,823 13,790 7,471 7,497 7,601 7,628 273,504 204,893 204,947 207,413 127,698 278,4.1.6 331,490! 309,2081 1.0,477 27,976 28,298 28,298 61,71151,4f 153,524i 153,274J 16,988 35,112 35,092 19,786 3,41.2 3,412 7,587 7,587 1,856 1,856 4,594 4,594! 1,131 1,148 3,850 3,850 15,431 15,751 44,721 43,220 3,280 4,569 10.804 10.805 2,381 6,506j 6,497 6,420 3,577 11,910 11,910 11,910 2,975 3,005 7,934 7,934 4,476 15,677 16,679 11,530 872 1,556 931 85 1,123 4,169 2,958 671 7,440 10,000 7,450 7,468 322 230 161 132 2 171 2; 3,144 2 70 I 85,067 95,219! 111,305! 85,218' 2,515 2,150 1,130 590 49,005| 54, lOOi 75,373j 49,575 113,791 130,456 126,244 134,186 69,44? 595,094 70 475 493,286 72,767 492,570 71,540 493,483 ! 16,846 18,195 16,808 19,731 2,593 2,054 3,035 3,484 2,958 1,940 3,095 1,— 250 250 250 250 1,380 805 275 1,461 52 145 145 52J. 145. H5 9,359 8,471 11,113 9,671 793 201 396 1,426 429 681 1,131 5,231 6,378 5,819 6,005 1,527 812 475 425 103,755 97,346 94 729! 115,2551 13,517 18,363 19,214 19,351 12,846 4,679 20,024 32,811 12,039 6,581 14,095 29,569 25.444 27,325 28,2r !59| :i 72 85 22 22 1,329 30 300 350 50 50 40 35 2,176 2,080 2,382| 2,319 2,075 2,121 1,5S7 1,395 13,056 11,230 4,918 4,249 1,102 896 387 492 83 73 73 2,655 lj305 1,103 9,564 8,096 6,252 5,077 852 778 224 135 7,482 9,731 4,530 5.969 358 FEDERAL RESERVE BULLETIN. MAECII, 1922. BANK DEBITS. much more pronounced than during the period under review, the average daily volume for Beginning with the statement for the week the two years was approximately the same. ending Februaiy 4 the Board's figures of debits to individual accounts cover all the centers of the United States where clearing-house assoDEBIl "5 'TO INDIVIDUAL AC^COUNTS AT BANKS \H ciations have been established, provided reREPORTIMG CLEARING HOUSE CENTERS ports reach the Board in time for inclusion in E•EBIT S FOR 1921 DEBITS FOR 19;22 ~its weekly statement. The number of centers ( IN BlULiONS OF DOLLARS ) 12 reporting at present is about 230, of which, 11 however, only 166 are included in the summary 11 10 by Federal Reserve districts, for the reason that 10 these are the centers for which comparable 9 »h 9 figures for 1921 are available. A A \A N\ 8 8 \ V \ 7 Volume of business showed a downward 7 V- \ V j tendency for the four weeks under review, but 6 6 this decline is largely accounted for by the two 5 5 tlegal holidays in the latter part of the month— 4 4\ A Kh \A W *A \j Lincoln's Birthday on February 12 (observed \p \ 3 3 on February 13) and Washington's Birthday on 2 2 February 22. On the basis of average daily 1 AND 2 : BANKS IN NEW YORK CITY 1 1 volume the figures for the most recent four 2\ AND 4*- BANKS 1N ALL REPORTING CENTERS I I I i I - O 0 weeks are only about 7 per cent below those for the preceding weeks. Volume of business in 5 5 February has been lower than in January for 4 \ A \/\ ^ ^ \ ^A 4 every year for which statistics are available, \ V 3 since the week at the opening of the year is one 3 \ 2 2 during which large amounts of annual pay1 1 ments are made. BANKS OUTSIDE OF N E W YORK Ci Y While the decline in volume of business durJan. Feb. Mar. Apr. May June July Au£. Sept. Oct. Nov. Dec. ing the corresponding four weeks in 1921 was K X A V r r A - - • i DEBITS TO INDIVIDUAL ACCOUNTS AT CLEARING-HOUSE SUMMARY BY F E D E R A L RESERVE i BANKS. DISTRICTS. [In thousands of dollars.] 1921 W e e k ending— 1922 Week ending— Number of centers included. Feb. 1. Feb. 8. Feb. 15. Feb. 21. Feb. 2. Feb. 9. Feb. 16. Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco. 463,844 4,460,342 39G, 128 409,226 182,894 179,283 923,317 200,76.1 112,926 216,427 139,197 427,174 452,505 4,214,255 3S9,297 438,571 191,279 176,223 904,882 196,454 118,922 225,269 142,468 439,376 402,734 3,802,553 339,572 389,8«1 182,820 162,653 822,892 194,855 110,020 218,521 129,452 406,513 396,861 3,974,091 353,193 360,711 151,184 151,045 807,860 177,388 109.103 199,328 125,335 424,938 497,831 4,771,038 402,831 518.559 226,383 201,272 966,859 221,093 129,220 253,586 157,370 469,79S 429,114 3,988,564 347,983 440,956 199.985 178' 390 880,538 207,848 121,960 235,122 152,882 451,886 442,736 3,766,451 361,659 457,631 204,178 184,036 892,021 220,245 129,591 228,254 140,567 457,150 364,747 3,235,403 326,224 484,299 171,795 169,661 774,541 211,023 102,096 232,471 133,92* 391,533 Total.... 166 ' 8,111,521 7,889,501 7,162,466 | 7.234,037 8,815,840 7,635,228 7,484,519 6,597,721 j I j ! I ! Feb. 23. MAUCH, 1922. 359 FEDERAL RESERVE BULLETIN". DATA FOR EACH REPORTING CENTER. [In thousands of dollars.] I 1922 Week ending— Feb. 8. Feb. 15. Feb. 21. 1921 Week endingFeb. 2. ! Feb. 9. i Feb. 16. District No. 1—Boston: Bangor i 3,563 3,567 2,995 2.770 3,615 | 3,098 j 2,797 i Boston j 307,145 296,986 333,230 319,174 I 274,966 ' 279,434 I 352,702! Fall River : ' 5,752 7,180 6,546 j 6,547 6,628 5.771 ! 4,732 • Hartford i 21,560 19,284 22,254 i 21,108 20,602 17,300 I 17,766 i llolyoke 2,793 2,885 2,840 I 3,305 2,714 2,560 ' 2 573 ! Lowell ! 3,886 4,1G6 4,473 | 4,156 3,897 | 5,274 ; 3,887 | Manchester J 4,103 3,995 4 167 : 4,206 4,013 4,192 ! 3,246 j New Bedford ] 6,258 5,823 5,692 I 5,358 6,721 5,893 ; 6,069 I New Haven j 15,366 15,799 18,356 f 16,559 15,924 I 13,878 ! 14,265 Portia rid j 7,514 6,860 i 10,370 I 8,271 6,670 6,044 5,866 i Providence i 31,766 ! 29,379 30,994 i 28,773 29,628 32,337 26,372Springfield i 13,788 j 12,323 , 15,186 12,808 ! 11,287 11,733 11,583 Waterbury | 5,183 5,299 5,667 ! 5,428 ! 5,473 8,354 7,387 Worcester | 14,932 13,127 J 15,487 | 14,088 13,564 i 12,153 11,567 District No. 2—New York: i Albany i 24,355 j 21,615 26,043 22,310 ' 24,091 I 18,444 17,751 Binghamton I 3,961 ! 3,292 3,550 4,235 I 3,708 4,304 3,255 Buffalo 57,473 , 56,686 53,217 47,820 | 59,607 47,178 48,329: i Elmira ' 2,629 ! 3,326 2,837 ' 2,305 Jamestown I 3,105 2,787 2,957 2,857! Montclair I 2,438 ! 1,779 3,419 i 2,327 New York I 4,330,748 ! 4,098,131 ! 3,694,540 3,866,176 4,632,279 3,856,031 3,642,864 Northern New Jersey Clearing House Association , 49,248 ' 44,875 j 38,926 39,367 Passaic ' 4,789 ' 4,473 4,434 4,580 ] 4,361 4,297 ! Rochester | 27,263 i 27,990 23,802 27,667 33,077 26.525 | 23,429 i Stamford j 2,492 , 1,939 2,161 1,721 | Syracuse I 11,753 : 12,742 10,520 14,411 12,654 10,854!" 13,684! District No. 3—Philadelphia: ] Allcntown | 5,384! 5,032 4,667 4,613 i Altoona \ 2,798 ! 3,025 2,930 2,675 2,396 2,081 j 2,917 Camden ! 9,803 ! 8,920 8,420 7,643 Chester j 3,523 • 5,430 4,355 3,799 3,403 4,599 3,432 I Harrisburg ! 7,300 I 6,400 5,900 6,587 5,604 7,000 I 5,970 I Hazleton i 2,352 i 2,035 ! 2,063 1,620 j Johnstown < 4,422 ! 4,122 i 3,475 4,227 3,393 5,081 4,610 Lancaster ! 4,250 4,604 3,963 ! 4,790 3,988 4,984 4,781 Lebanon | 1 004 ! 1,028 995 I 885 , Norristown ' 774 I 550 617 • 492 ! . Philadelphia | 282,597 270,488 320,460 ' 316,292 j 267,429 284,598 ; 322,762 Reading i 6,760 ! 6,228 6,158 6,561 ; 6,351 ' 6,818 6,397 Scranton i 13,330 ! 15,151 15,777 14,014 ! 12,460 i 12,867 13,800 ! Trenton ! 11,387 9,850 10,875 ! . 10,573 12,081 10,168 i 9.791 ' Wilkes-Barre i 7,532 8,256 7,201 8,859 ! 8,095 8,735 j 7,126 j WiUiamsport \ 3,628 3,699 3,929 3,291 i 3,765 3,979 4,262 ! Wilmington i 6,233 I 7,627 8,032 6,445 i 6,257 8,081 6,446 York... I 3,516 i 3,437 3,485 3,617 ! 3,199 3,799 ! 3,295 District No. 4—Cleveland: ! i I 12,532 j 12,552 Akron , 12,356 | 12,834 i 9,152 11,446 11,034 ' Butler 1,576 i 2,051 1,556 Canton 5,874 i 5,787 5,437 j Cincinnati i 57,310 59,355 ! 60,404! 54,795 j 61,230 53,962 52,376 i Cleveland ' 117,251 j 121,954 113,585 | 115,053 i 114,280 98,964 i 146,316 ! 26,202 j Columbus 23,947 i 29,126 26,937 41,420 | 45,690 25,878 ; Connellsville ! 956 774, 11,216 11,837 Dayton '• 11,498 • 11,695 12,328 I 11,445 10,452 | 5,134 i 6,018 6,895 Erie \ 5,006 ! 6,204 ! 5,133 4 595 ! 9,964 ; 3,863 3,557 Greensburg j 2,645 i 5,127 | 3,464 2,321 Homestead ! 707 I 479 534 j 3,760 | 5,530 | 5,717 5,567 I 5,402 Lexington j 5.309 | 5,989 2,775 ! Lima i 2,659 . . 3,301 869 i Lorain | 989 827 I 1,611 ! New Brighton i 1,585 1.310 ; 2,492 2,540 ' 2,955 ! 3,206 2,375 I 2,001 2,211 ! Oil City i 185r096 150,003 ! 161,855 i 118,335 133,028 | 212,551 I 177,648 Pittsburgh | 3,156 3,805 3,852 i 3,419 3,246 ' 3,015 | Springfield, Ohio I 3,285 37,118 ! 39,948 26,234 | 29,933 Toledo i 1,955 i 1,927 ! 2,664 Warren, Ohio j 8,084 7,847 6,840 i 6,495 j 7,601 9,731 : 5,959 Wheeling i 6,915 ! 12,722 ! 11,947 7,448 ! 11,159 j 8,892 Youngstown j 1,622 : 1,654 , Zanesville 2,010 District No. 5—Richmond: 78,876 93,833 74,225! ! 73,942 62,306 I 104,723 I Baltimore 6,001 ' 6,410 5,600 i 6,895 5,674 6,010 I 6,400 ' Charleston, S. C 6,100 i 6,674 6,891 6,213 Charleston, W. Va 5,572 -. 6,330 4,641 6,382 i 5,523 4,588 ! Charlotte 4.792 4,591 i 4,799 5,220 4,990 4,666 4,550 j Columbia 3,963 1,554 i 1,671 1,822 Cumberland 1,357 ! 1,905 i 2,173 2,059 Danville 1,474 ! 3,558 i 3,397 3,384 Greensboro 2,762! 2,882 I 3,422 2,865 Greenville 2,452 ! 3,345 3,132 3,505 ; 1,443 i 1,726 1,510 Hagerstown 1,385 | 3,979 i 3,921 ! 3,990 Huntington 3,632 5,648 '5,'478 "5," 957"' 4,384 i 4,391 | 4,409 Lynchburg 3,595 I 1,392 ! 1,562 ! 1,588 Newport News 943 ! Norfolk 13,182 13,528 13,902 I 13,816 15,046 I 10,500 13,050 Raleigh 4,100 3,750 ! 4,380 i 4,300 3,890 i 3,065 3,900 Richmond 29,145 25,057 j 26,521 i 21,254 33,867 I 29,6 23,456 Feb. 23. 2,836 248,934 5,282 16,082 2,574 3,669 3,482 5,104 13,732 7,366 27,053 11,992 4,540 12,101 18,712 3,244 51,819 3,122,242 3,743 23,797 11,846 2,499 4,277 4,529 4,305 4,276 247,378 5,721 13,743 9,024 8,161 3,549 15,527 3,235 10,940 51,491 97,524 21,728 11,145 5,118 2,892 4,825 2,613 256,926 3,443 6,669 73,854 5,211 4,783 3,778 2,708 5,217 11,349 4,050 26,782 360 FEDERAL RESERVE BULLETIN. MARCH, 1922. DATA FOR EACH REPORTING CENTER—Continued. [In thousands of dollars.] 1921 Week Ending— 1922 Week Ending— Feb. 1. Roanoke... Spartanburg Washington. Wilmington, N. C Winston-Salem District No. 6—Atlanta: Albany Atlanta Augusta Birmingham Brunswick Chatanooga Columbus Cordele Dothan Elberton Jackson Jacksonville Knoxville Maeon Meridian Mobile Montgomery Nashville Newnan New Orleans Pensacola Savannah Tampa Valdosta Vicksburg District No. 7—Chicago: Adrian , ;.. Aurora Bay City Bloomington Cedar Rapids Chicago Danville Davenport Decatur Des Moines Detroit. Dubuque Flint Fort Wayne Gary Grand Rapids Indianapolis Jackson Kalamazoo Lansing Mason City Milwaukee Moline Muscatine Oshkosh Peoria Rockford Sioux City South Bend Springfield, 111 Waterloo District No. 8—St. Louis: East St. Louis and National Stock Yards Evansville Greenville Helena, Ark Little Rock Louisville Memphis O wensboro Quincy St. Louis Springfield, Mo District No. 9—Minneapolis: Aberdeen Billings Dickinson , Duluth Fargo Grand Forks Great Falls Helena. Jamestown Lewistown Minneapolis Feb. 8. Feb. 15. Feb. 21. 4,306 2,054 34,628 4,030 4,823 4,702 1,933 42,144 4,319 4,811 3,732 1,786 40,158 4,413 4,648 3,892 j 1,565 32,375 3,835 3,798 961 25,275 5,521 11,645 443 6,595 1,846 1,114 21,960 5,196 15,940 819 6,603 2,067 426 141 530 200 9,131 5,375 3,081 10,075 6,450 3,265 1,082 20,600 4,725 15,512 506 6,944 2,128 213 424 184 3,455 10,117 5,699 3,240 5,695 3,223 15,286 7,127 3,525 14,809 267 61,057 1,308 8,704 8,498 1,127 1,706 5,824 3,113 13,842 277 55,503 2,144 8,160 5,584 974 1,646 732 19,712 4,212 13,585 449 5,995 2,055 214 368 114 2,695 9,182 5,684 3,144 2,040 ! 5,043 2,756 12,505 323 53,930 917 7,622 5,311 799 1,447 703 2,765 2,235 1,935 8,300 608,715 2,400 8,398 2,842 14,680 92,139 2,796 4,670 6,409 1,761 12,686 27,752 3,074 3,428 4,186 1,786 62,288 1,641 1,141 2,022 7,567 4,498 10,804 5,341 5,319 3,179 539 2,090 1,843 2,037 6,220 540,2^4 2,400 5,580 2,793 13,619 97,945 2,756 3,250 5,567 2 467 12,712 Feb. 2. 69,230 1,094 8,418 8,023 729 1,691 580 1/ 1,987 2,098 7,600 639,468 2,500 5,906 2,647 12,272 2,538 4,100 5,782 2,237 13,281 26,718 3,158 4,072 3,815 1,891 53,691 1,337 878 1,951 6,922 3,985 11,432 4,839 5,309 2,671 2,445 3,588 3,601 1,546 52,721 1,435 977 1,700 7,422 4,052 11,519 4,819 5,172 2,908 8,467 4,943 1,111 915 9,508 28,884 22,698 1,656 1 806 121,408 3,049 11,888 28,481 21,372 1,741 1,957 116,520 3,179 8,952 5,214 891 905 ,9,581 33,985 19,745 1,394 1,789 112,924 2,665 981 1,593 223 10,665 2,020 1,132 1,299 2,321 294 776 57,402 1,055 1,562 223 11,640 2,232 1,263 1,393 2,388 446 701 65,687 1,416 129 10,534 1,838 1,088 1,124 2,256 333 686 61,342 4,764 500 1,983 2,244 2,012 6,629 531,061 1,800 6,323 2,332 13,227 100,990 2,475 4,350 6,049 1 627 10,802 26! 812 2,589 3 277 4 154 1 562 46,642 1,582 996 1,800 6,693 3,618 10,933 6,175 4,321 2,570 6,800 4,757 880 776 8,043 27,302 19,219 1,378 1,639 107,358 j 2,270 j 902 ; 1,155 j 217 | 9,983 1,434 902 1,112 1,661 Feb. 9. 36,414 7,443 38,054 5,517 27,620 6,039 17,238 9,194- Feb. 16. Feb. 23. 33,958 5,500 29,862 4,201 23,892 ! 6,087 15,563 24,973 5,263 15,862 22,163 4,937 16,026 8,245 i 8,970 7,545 ! 12,702 6,027 3,765 12,170 5,560 3,937 10,953 6,137 3,813 10,342 5,128 3,315 6,461 4,015 19,070 5,840 3,181 21,252 5,682 3,079 18,908 5,504 2,930 19,595 69,157 1,941 10,677 5,622 53,319 1,395 10,810 5,297 J. 1,842 60,941 1,604 9,661 6,438 53,553 1,295 9,263 6,733 1,752 i,332 2,472 2,112 2,593 2 ^63 1,744 | 2,597 | 2 239 8,880 652,027 i 579,381 586,511 2,356 2,195 8,009 505,701 6,150 2,896 16,252 109,992 2,956 3,697 6,028 6,220 2,684 16,486 95,455 3,067 3,643 6,512 7,007 2,660 15,386 93,922 2,838 3,142 6^017 5,883 2,576 14,707 84,584 2,426 3,722 5,681 18,215 27,216 2,940 4,023 4,886 18,960 31,915 3,774 3,643 4,278 17,778 27,597 2,096 3,290 3,630 58,063 1,650 59,578 1,707 59,297 2,244 46,589 2,426 8,395 4,382 12,629 3,017 5,222 2,815 8,051 4,420 11,560 3,091 4,809 2,704 7, Go* 5,352 11,851 3,270 5,269 3,027 7,070 4,356 10,849 4,294 4,265 2,461 9,470 4,415 9,723 4,324 8,305 4,539 7,356 4,382 9,616 34,814 24,265 11,133 30,895 23,014 9,742 31,215 21,872 7,781 59,065 18,006 2,140 133,496 2,877 2,518 123,647 2,594 2,226 139,865 2,481 2,047 109,839 2,547 1,362 1,446 1,332 1,626 1,163 1,550 14,358 2,050 1,030 1,747 2,075 14,159 2,171 1,224 1,645 2,313 15,902 2,234 994 1,357 1 774 70,212 63,187 69,766 I 16,764 28,375 3,373 3,898 4 562 I I I I ' 9,306 "" I 1,400 I I i | j 10,953 2,211 821 1,126 1,822 298 59,090 | 53 490 MARCH, 1922. ' 361 FEDERAL, RESERVE BULLETIN. DATA FOR EACH REPORTING CENTER—Continued. [In thousands of dollars.] 1921 Week E n d i n g - 1922 Week Ending— Feb. 1. District No. 9—Minneapolis—Continued. Minot Redwing St.Paul DO ..: Sioux Falls Superior Winona District No. 10—Kansas City: Atchison ." Bartlesvillc Casper Cheyenne Colorado Springs Denver : Grand Island Grand Junction Guthrie Hutchin son Joplin Kansas City, Kans Kansas City, Mo Lawrence McAlester Muskogee Oklahoma City Okmulgee Omaha Parsons Pittsburg, Kans Pueblo... St. Joseph Topeka Tulsa Wichita District No. 11—Dallas: Albuquerque Amarillo ." Austin Beaumont Corsicana Dallas El Paso Fort Worth Galveston Houston Roswell San Antonio Shreveport Texarkana, Tex Tucson Waco District No. 12—San Francisco: Bellingham Berkeley Boise Eugene Fresu o Long Beach Los Angeles Oakland Ogden Pasadena Phoenix Portland Reno Ritz ville Sacramento Salt Lake City San Bernardino San Diego San Francisco San Jose Seattle Spokane Stockton Tacoma Yakima 600 449 30,622 35,992 2,728 1,389 774 1,101 1,783 3,091 2,922 2,432 30,666 1,103 500 577 3,787 1,940 3,262 65,008 883 822 5,516 18,145 1,941 39,900 939 936 4,307 10,941 4,236 24,339 8,771 [ I Feb. 15. 499 348 124,575 27,196 2,664 1,423 824 643 421 126,504 31,048 2,809 1,529 981 2,028 2,453 2,460 2,391 34,637 1,042 515 733 2,986 1,918 3,160 49,368 828 1,082 5,187 16,693 1 38,193 648 3,601 15,594 2,825 28,544 8,844 1,583 3,443 3,712 1.356 34,801 7 463 31,947 15,831 22,695 595 6,329 6,911 1,756 2.357 3,292 I I ' I 33,457 7,885 32,599 15,954 23,871 5,359 6,370 1,172 1,359 3,555 1,115 2,829 i 3,267 i 1,196 8,654 6,341 118,452 16,416 4,522 5,301 3,666 29,235 1,930 144 10,171 11,465 1,500 7,597 148,534 4,201 26,193 8,532 4,140 7,108 2,286 1,108 1,996 1,919 3,351 2,221 29,104 1,092 555 557 3,500 2,397 3.009 61,428 806 965 5,415 16,717 2,532 37,433 634 .1,407 3,220 13,240 3,608 24,431 9,843 1,550 1,931 2,552 3,481 Debits of banks which submitted reports in 1921. Feb. 8 j | ! I , | 1,180 4,214 ' 2,573 1,471 9,201 6,666 112,873 21.403 4,796 5,886 4,424 30,656 2,302 144 12,152 12,582 1,419 8,116 144,184 4,730 I 30,485 ! 11,275 4,857 7,691 | 2,734 I 2,429 3,860 1,178 29,866 6,838 30,427 11,983 22,540 713 5,552 8,201 1,436 1,470 3,300 1,200 2,715 2,385 1,846 8,745 5,630 102,257 16,400 3,595 4,739 3,595 26,318 1,861 121 10,159 9,577 1,279 7,766 144,782 4,129 33,140 7,374 4,752 7,811 2,378 Feb. 21. Febi 2. 618 !. 455 j . 127,641 32,088 ! . 3,043 j 1,386 ! 74 9 i 1,185 " 1,599 I 2,388 !. 1,744 2,144 31,2.11 I 1,077 |. 459 j . 485 . 2,700 . 1,778 2,771 ! 58,912 i 710 ! . 786 l.t 4,898 15,157 1,592 38,607 747 1,031 2,416 11,240 2,605 13,832 9,199 1,611 1,552 ! 2,126 3,518 1,492 31,890 5,731 32,146! 11,812 20,397 526 5,192 5,410 i 1,572 I 1,400 j 2,500 1,278 j. 5,204 ! 2,035 i 1,241 . 7,887 j 6,099 | 97,950 | 16,928 j 3,581 !! 5,106 3,119 | . 24,167 ! 1,791 i 111 11,790 9,391 1,244 172,435 3,958 29,319 7,728 3,533 6,187 2,127 Feb. 9. Feb. 16. Feb. 23. 28,024 26,445 27,877 22,753 *"4,"I66' 5,000 1,968 3,800 2,104 1,070 3,600 2,012 920 1.100 1,069 2,767 3,024 2,478 1,932 26,987 1,044 3,488 2,771 2,427 37,040 2,318 31,116 1,348 2,652 28,976 1,957 4,027 72,295 2,185 3,845 68,315 2,299 3,902 65,481 1,727 3,101 60,649 5,091 22,009 5,503 22,433 5,386 20,275 4,191 18,321 43,327 41,631 40,663 37,382 2,919 15,846 3,393 26,164 9,788 2,917 16,620 4,754 18,975 9,236 3,811 14,405 2,629 23,428 9,163 3,044 15,390 3,168 40,368 9,723 2; 209 1,065 1,673 2,084 1,682 1,535 3,275 3,641 2,863 4,486 3,311 4,419 3,082 3,583 37,765 8,469 23,660 21,349 34,814 32,182 7,825 24,180 23,928 31,457 34,468 7,331 23,470 16,290 27,298 31,181 7,706 24,100 18,194 27,135 7,515 8,190 1,623 1,264 4,132 7,079 9,349 1,661 1,825 3,903 6,891 7 747 1,456 1,673 4,501 5,248 6,405 1,214 1,380 3,165 2,569 2,619 3,092 2,403 2,558 2,851 2,568 1,763 10,855 5,165 96,424 19,115 3,051 5,670 17,684 5,004 93,795 18,221 3,067 5,470 14,852 5,041 95,703 18,192 3,069 5,301 4,660 84,350 17,819 3,007 4,901 34,902 2,207 32,506 2,243 38,248 2,305 32,624 1,802 10,991 14,305 13,896 13,137 12,533 12,907 13,012 7,292 190,932 5,955 31,842 10,208 4,618 7,768 2,680 7,832 174,592 4,486 29,373 10,821 4,634 7,339 2,291 8,843 175,218 4,066 31,327 9,732 4,939 7,461 2,004 7,999 150; 639 3,522 24,109 8,684 3,800 6,419 1,880 362 FEDERAL RESERVE BULLETIN. MAKCH, 1922. FEDERAL RESERVE CLEARING SYSTEM. OPERATIONS FROM JAN. 16 TO FEB. 15, 1922. [Allfiguresshown in thousands.] Items drawn on banks located in own district. Federal Reserve Bank or branch. Outside F. R. Bank or branch city. In F. R. Bank or branch city. Total: 557,061 3,450 360,2-12 630 550,683 1,889 3,576,027 4,342 40,868 406 i 76,317 219 691,321 2,032 ! 229,192 1,738 187,984 1,211 j 132,004 398 68,769 107,220 186 807 190,021 820 ! 80,485 455 113,297 1,828 231,027 111 127,706 56,974 254 651 40,041 112 50', 487 332 7,304 133 227 31,867 17,263 169 63 21,375 18,620 199 59 26,681 12,709 111 43,652 66 530,037 3,483 269,077 1,011 454 43,604 265 126,496 73,795 338 188,837 1,292 16,651 44 290 20,794 23,294 92 418 53,529 9,224 82 153 28,549 61, 136 217 94,155 1,275 10,3-17 22 184 7,177 85,150 282 212,577 1,279 18,931. 131 39,813 31.1 61,310 71 896 44,378 26,363 178 476 43', 321 164 57,435 1,258 170,837 42 132 9,528 61 321 38,507 29,756 196 495 102,617 37,521 364 107,785 1,203 81,733 61 27,748 10,305 199 47 21,414 24,796 369 109 31,659 13,613 216 37 15,951 10,055 168 1 939,375 102 22,072 I 4,182 968 110,166 I 7,199 4,236, 876 1,012 122 1,986 ! 633 119,171 8 669 949,410 140 28,897 3,910 326,317 49 6,329 1,659 50 6,368 11,049 12 1183,712 48 3,991 1,304 280,497 91 29 353,294 8.970 1,983 174 44 191,672 58 49 i\, 992 954 479 104,681 32 35 14,153 370 18 40,119 10 948 240 39.667 36 8 1,029 271 17 46,651 13 1,347 217 65,338 48 40 8,977 843,664 287 244 44,550 4,738 173,076 745 9 26 2,976 275,025 34 111 12,393 1,741 341 38,490 9 1,045 7 541 80,468 9 31 3,645 246 38,770 1 11 997 78 23 11,488 11,517 1167,95 i 213 20,893 7 3,369 316', 091 229 59 18,364 1,620 465 62,189 i OS 23 3,445 977 107,097 10 1,409 172,326 ! 41 18 2,360 1673 237,461 28 9,189 1,450 190* 20,052 11 16 1,616 420 70,141 19 38 1,878 751 209,090 26 60 68,952 116 198,175 36 8,657 1,603 275 42,678 5 15 4,625 428 14 48,873 12 2,663 350 11 25 5,942 51,214 213 12 8 873 26,879 , J a n . 16 t o F e b . 15,1922.. 10,221 7,608,706 131,363 2,933,507 2,352 Dec. 16 t o J a n . 15,1922.. |9,939 6,590,445 |32,157 3,175,862 i2,965 J a n . 16 t o F e b . 15,1921.. 7,715 % 923,213 ,29,068 3,529,757 [2; 205 47,691 i 115,105 : 18,145 114,142 ; 5,133 ; 7,698 . 36,664 5k 421 25,758 10,188 8,250 7,534 2,675 ! 13,031 ! 29,707 i 2,409 . 4,502 ! 1,044 706 I 228 • 15,301 ! 2,528 i 33,084 . 16,545 i 7,082 1 5,071 • 10,887 ! 1,628 1 2,808 , 2,772 i 16,160 i 1,550 ! 3,019 ; 6,206 , 2,052 1 4,375 1 987,066 4.579 1,063,552 337,579 194,709 324,483 416,397 223,537 118' 508 65,973 48, 151 50,352 79,037 875,986 176,097 280,500 41,496 81,343 39,084 183,578 24,201 359,133 88,132 120,544 81,950 252,786 22,224 74,156 216,867 223,960 47,826 54,172 61,938 33,345 18 j 5,531 8,229 4,357,512 40 ; 22,854 ; 795 160,170 6,129 I l', 734 3,299 ! 1,074 7,322 1,423 8,682 2,192 6,107 1,082 3,639 533 17,604 414 1,250 282 1,026 293 668 271 2,615 5,032 612 757 973 L, 785 1,962 376 169 553 86 249 320 1,000 783 222 9,958 1,918 9,398 570 6,365 1,038 4,553 733 4,438 1,568 544 206 1,207 444 5,005 812 9,625 1,788 3,598 315 2,280 452 4,518 401 4,414 241 432,661 -143,947 ! 110,977,386 ,3,645 434,981 '145,072 il0,203,575 .3,778 444,749 Ii38,995i 19,899,312 .3,491 i Total items handled, including duplications. Number. Amount. NumNumAmount. ber. Amount. ber. Amount. Number. Amount. Boston New York Buffalo Philadelphia Cleveland Cincinnati Pittsburgh Richmond Baltimore Atlanta Birmingham Jacksonville Nashville New Orleans Chicago Detroit St. Louis Little Rock Louisville Memphis' Minneapolis Helena Kansas City Denver Oklahoma City Omaha Dallas El Paso Houston San Francisco Los Angeles Portland Salt Lake City Seattle Spokane Items forwarded to parent bank or to branch in same district. Items forwarded to other F. R. Banks and their branches. Total items handled, exclusive of duplications. Items drawn on Treasurer of U. S. 157,534 i48,336! 11,766,647 162,925 49,630 I 11,033,310 220,583 43,280 j 11,261,341 I 1 Includes items drawn on banks in other Federal Reserve districts forwarded direct to drawee bank. NOTE.—Number of business days in period was 26 in all Federal Reserve bank and branch cities except as follows: Birmingham and Memphis, 25 days; Boston, Cleveland, Cincinnati, Richmond, Baltimore, New Orleans, Kansas City, and Oklahoma City, 27 days. NUMBER OF MEMBER AND NONMEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT, FEB. 15, 1922 AND 1921. Nonmember banks. Federal reserve district. On par list. Not on par list.1 Federal reserve district. ! 1 Nonmember banks. I Member banks. ! • - - — [ I On par list. '. Not on par list-1 ; I 1922 1921 ! 1922 j 1921 j 1922 St. Louis Minneapolis Kansas City Dallas San Francisco Total 1 Incorporated banks other than mutual savings banks. 1921 ! 590 j 1,023 1 1,115 i 856 ! 852 572 1,005 1,094 854 838 2,627 3,092 1,121 968 2,513 2,867 3,392 1,259 1,017 165 186 220 33 174 9,853 9,668 18,053 19,023 2,327 1,744 363 FEDERAL. RESERVE BULLETIN. MARCH, 1922. GOLD SETTLEMENT FUND. INTERBANK TRANSACTIONS FROM JAN. 20 TO FEB. 23, 1922, INCLUSIVE. [In thousands of dollars.] Changes in ownership of gold through trans- Balance in fers and settlements. fund at end of period. Decrease. I Increase. Daily settlements. Transfers. Federal Reserve Bank. Debits. Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City... Dallas San Francisco.. Credits, 2,000 "5," 666" Total, 5 weeks ending— Feb. 23,1922 Jan. 19,1922 Feb. 24,1921 Jan. 20,1921 112,000 165,475 267,055 561,698 471,221 1,749,293 590,071 452,494 506,634 189,287 862,902 434,678113,666 351,068 188,142 239,390 .... | 477,408 1,727,871 I 583,890 i 461,576 508,389 ! 221,624 j 893,289 - 420,280 110.753 ! 335', 469 i 189,695 | 218,602 112,000 165,475 267,055 561,698 2,000 4,000 | Credits. 55,000 15,000 5,000 8,000 2,000 7,000 6,000 3' 000 8,000 3,000 40,000 35,000 11,000 7,000 6,000 Debits. 6,148,846 6,428,702 6,203,222 7,038,789 j i 1 1 33,813 1,422 2,181 I ! 7,082 3,755 34,337 35,387 i2,398 !. 87 "9^599'I. 25,788 6,148,846 6; 428,702 6,203,222 7,038,789 85,201 -I 4,553 i "I 85,201 .1 26,253 77,409 56,891 39,438 33,820 28,049 101,557 20,728 32,360 47,510 18,549 37,588 518,152 468,174 521.727 397;858 GOLD AND SILVER IMPORTS AND EXPORTS. IMPORTS INTO AND EXPORTS FROM THE UNITED STATES, DISTRIBUTED BY COUNTRIES. Gold. Countries. 1922 IMPORTS. France | $4,695,491 61 Germany . • 442,554 Greece 394,287 Netherlands ! 39,280 Spain i Sweden •. United Kingdom—England. .1 17,764,747 i 188,123 Canada j 417,134 Central American States j 505,832 Mexico 1 493,830 I West Indies ' 9,060 ! Argentina ' 14,321 I Chile j 975,325 Colombia 1 118,924 Peru I Uruguay :. ! 112,235 Venezuela 1,311,561 China I 1,014,025 British India 75,44.9 Dutch East Indies j 1.042,000 Hongkong '. 89,988 Philippine Islands ' 1,459,950 British Oceania 2,469,790 AU other Total Seven months ending January. January. 1921 33,633,967 ; Silver. 1921 Total. • 1921 1922 1922 1921 1922 I $1,874,799 $35,194,047 $119,202,809 7,764 19,919,482 866,254 5,003 1,332,215 9,896 4,186,976 529,823 306,124 10,900 2,036,064 4,275,999 28,011,345 238,218,844 110,308,645 10,467,791 6,962,650 2,381,294 14,149,796 3,375,102 537,567 4,004,774 3,198,875 469,303 3,261,271 1,768,681 312,685 2,608,540 1,670,123 254,154 123,545 21,358 373,931 9,049,026 1,365,937 6,873,387 111,123 987,646 1,107,793 15,058 3,802,964 36,749 436,460 511,977 1,311,561 168,108 3,894,520 1,014,025 14,863,765 "*i8i"7is" 643,183 1,124,624 7,618,087 534,429 69,'744! 669,787 891,360 11,658,304 2,106,707 I 4,669,122 19,960,976 2,154,635 1 4,568,169 26,571,371 • 841,626 7,237 187,655 S19,057 553,118 552 24,838 5,497 242,264 136,332 3,390,654 23,210 805,911 55,565 1,781,575 211,418 395,470 31,600 450,319 $94,174 10,972 229,895 24,041 95,079 31,395 144,450 1,962,230 1,709,081 21,817,716 70,804 18,530 1,903,288 638,325 5,034,485 132 100 642 91 1,283,444 1 83,461 45,238 872,267 ! I i 1,303 1,209 70 96,427 10,982 1,029 862,206 856 136,355 19,163 529,754 326,251,053 ! 371,876,949 ; "Si," 934* 4,834,875 j 6,495,758 j 1,370,145 259,991 1,000 449,798 i 369,696 I 142,500 j 131,870 186,215 ! ! i ! ! j ! ! ! $114,097 5,624,379 1*669 25,281 1,354 80,325 2,369,061 1,023,570 27,219,435 440,014 6,801 1,139,625 124,566 3,302,855 25,347 1,441 1,582 11,718 296,997 204 12,680 1,263 463,802 36,815,362 | 42,288,068 106,950 4,202,372 1,741,876 : 93,705 ! 1,351,450 1 862,774 I 142,500 ! 5,947,813 3,478,826 6,543 1,051,450 19,535 1,600,562 13,393,679 , 1,087,010 I 11,528,775 1,557,099 10,370,366 I 4,909,224 30,368 2,745,600 6,326,771 1,562,967 285,543 T EXPORTS. United Kingdom—England Canada Central American States Mexico West Indies Colombia Peru China British India Dutch East Indies French East Indies 1 Hongkong ' Japan 1 Allother ! Seven months ending January. January. 180,177 i 101,512 2,191,203 I 50,000 j . 339,071 85,565 ' 2,994,819 I ' "5*263,* 556 T 593,000 I 1,874,330 | 3,411,915 ! 350 1 3,653,376 60,000 ! "219*366*1 24,300 2,724,980 136,400 286,000 12,000,000 I 1,414,461 600,000 2,290,000 8,026,490 92,537,289 173,762 862,983 I 129,572,318 j 1,179,000 : 8,561,125 i " 3,037,076 '. 18,063,796 896,263 667,813 2,298,062 235,480 897,600 1,053,578 343 6,690,748 I 3,977,118 38,185,324 34,510,922 364 FEDERAL RESERVE BULLETIN. MAECII, 1922. MONEY HELD OUTSIDE THE UNITED STATES TREASURY AND THE FEDERAL RESERVE SYSTEM, FEBRUARY 1, 1922. Held outside Held by or for S. F. R. Banks and U.andTreasury F. R. system. Held in the Generate*. ! Government.1 Gold coin and bullion 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. 1,1922... Jan. 1,1922... Dec. 1,19213.. Nov. 1,1921 'K Oct. 1,19213.. Sept. 1,19213. Aug. 1, 19213. July 1,1921.3.. Juno 1,19213. May 1, 192 i s . . Apr. 1,19213.. Mar. 1,19213. Feb. 1,19213. Jan. 1,19213... "272," 54^ 512 14,950,395 346,681, 016 ! 2,560,887, 510 111, 140. 400 749,611, 367 3,967,098 3,158,867 1,719,532 20,072,624 §2,166,703,166 529,876,156 8,637,252 43,908,192 27,906,903 1,020 I 73,960,042 354,834,075 ! 18,374,798 j 19,068,741 j S, 079,226,057 8,282,433,487 8,156,446,983 8,117,812,092 8,150,752,689 8,082,456,974 8,059,103,327 8,096,033,684 8,144,987.895 8,128,219' 183 8,181,529,274 8,176,356,209 8,286,360,557 8,516,984,381 423,791,434 427,628,569 450,610,144 457,988,002 430,580,014 431,623,906 432,471,109 460,595,721 499,236,987 508,349,193 496,945,969 493,976,120 499,358,809 494,296,257 3,243,270,345 ! 3,147,357.764 j 3,082,379,182 ! 2,982,192,610 • ' 2,980,284,106 | 2,907,188,113 j 2,818,800,024 ! 2,697,553,897 ! 2,562,692,917 2,512,465,834 ! 2,534,743,843 ! , 2,385,101,578 2,438,773,422 j 2,377,972,494 ' §3,680,882,401 , 357,481. $367,064,680 12,858,238 j ' I i i Amount per capita outside TJ. S. Treasury and F. R. system. $444,482,276 ! 172,756,123 ! 58,225,364 232,309,781 • 229,684,214 , 1,542,004 ; 268,753,876 I 2,202,894,568 '. 91,046,070 710,470,002 4,412,164,278 . 4,707,447,154 4,623,457,657 ' 4,677.631,480 • 4,739' 888,569 4,743,644,955 4,807,832,194 4,937,884,066 5,083,057,991 5,107,404,156 5,149,839,462 5,297,278,511 5,348,228,326 5,644,715,630 S40-46 43. 22 42.50 43.06 43.68 43.77 44.42 45.68 47. 09 17. 38 47.83 49.26 49. 80 52.63 1 Includes reserve funds hold against issues of United States notes and Treasury notes of 1890 and redemption funds held against issues of national-bank notes, Federal Reserve notes, and Federal Reserve Bank notes, but excludes gold and silver coin and bullion held in trust for the redemption of outstanding gold and silver certificates and Treasury notes of 1890. 2 3 Exclusive of amounts held with United States Treasurer in gold redemption fund against Federal Reserve notes. Revised figures. DISCOUNT RATES OF FEDERAL RESERVE BANKS IN EFFECT MAR. 1, 1922. I Paper maturing within 90 days. Secured b y Federal Reserve Bank. Boston New York.... Philadelphia. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis.. Kansas City.. Dallas. San Francisco. Treasury Liberty notes and certificates bonds and Victory of indebtedness. notes. 44 44 4i 41 5 5 5 5 5 5 5 41 Trade acceptances. f 5 5 5 5 5 5 44 Commercial, agricultural, and livestock paper, n. e. s. 41 41 41 41 5 5 5 5 5 5 5 Agricultural and Bankers' live-stock acceptpaper ances maturing maturing after 90 within 3 months. days, but within 6 months. 41 4} 5 5 5 5 5 5 5 44 DISCOUNT AND INTEREST RATES. In the following table are presented actual discount and interest rates prevailing during the 30-day period ending February 15, 1922, in the various cities in which the several Federal Reserve Banks and their branches are located. A complete description of the several types of paper for which quotations are given will be found in the September, 1918, and October, 1918, A comparison between interest rates prevailing during the 30-day period ending February 15 and the 30-day period ending January 15 indicates that there has been a noticeable trend toward stabilization, although rates for prime commercial paper purchased in the open market continued to decline. Rates for all classes of paper were lower than in the corresponding period o E FEDERAL RESERVE BULLETINS. Quotations for new types of paper will be 1921, the declines being most general in the case of indorsed bankers' acceptadded from time to time as deemed of interest. ances. DISCOUNT AND INTEREST RATE PREVAILING IN VARIOUS CENTERS DURING 30-DAY PERIOD ENDING FEB. 15, 1922. Prime commercial paper. City. District. 30 to 60 days. No. 1... No. 2... No. 3.. No. 4.. No. 5.. No. 6.. No. 7.. No. 8.. No. 9.. No. 10. No. 11. No. 12. 1 Ordinary loans to Secured by customers warehouse secured by receipts. Liberty bonds. Boston Now York l Buffalo Philadelphia... I Cleveland Pittsburgh Cincinnati Richmond Baltimore Atlanta | Birmingham | Jacksonville. I New Orleans, Nashville I Chicago I Detroit • St. Louis Louisville. Memphis. Little Rock Minneapolis Helena Kansas City Omaha. Denver. Oklahoma City j Dallas ; El Paso. I Houston San Francisco Portland Seattle Spokane Salt Lake City Los Angeles i 4 to 0 ! months. _| 6J 5-1 5 7 5 5 7 5 7 5J 6-7 6 6 6J- 6 6 6 51 6 6 6 6 8 5 7 6 5-1 6 6 6 8 6 7 71 6 7 6i 6" 6 8 8 6 61 6-1 oh 6 6" 6 6 7 6 7 7 8 7 61 7 8 8 8 6 7716 71 8 6 7 7 10 8 10 7 7 7 617-1 6 8 7 7 5-1 61 ! 8 8 7 Rates for demand paper secured by prime bankers' acceptances; high, 51; low, 4; customary 4-1. 00. 366 FEDERAL RESERVE BULLETIN. MARCH, 1922. per cent two years ago, the February, 1920, average of $3.23 per pound being the lowest Continued advances in sterling and in most on record. of the other European and South American In the computation of the general index for exchanges are reported for the months of the month changes in the rates on the different February. The German mark, however, and currencies approximately offset each other. the currencies of central and eastern Europe The final result of these changes, together with show further declines. A downward tendency certain shifts in the weights assigned to the is noted also in the rates on the Orient. The different countries, is a slight decline of the rise in sterling was consistently maintained index from 59 in January to 58 in February. throughout the month. The rate on February The rates used in the compilation of the table 1 was about $4.23 and on February 28 $4.43, are noon buying rates for cable transfers in or only about 9 per cent below par, as compared New York, as published by the Treasury in with 20 per cent below par a year ago and 31 accordance with the act of May 27, 1921. FOREIGN EXCHANGE. FOREIGN EXCHANGE RATES.1 COUNTRIES INCLUDED IN COMPUTATION OF INDEX. High. Low. Par of exchange. Countries. Belgium Denmark France Germany Italy Netherlands Norway Spain Sweden Switzerland United Kingdom January. February. February. Average. January. Weight. February. 7.5900 7. 8144 i 43.11 i 40.49 19.30 8.0000 7.9500 8.7300 8.3195 26.80 20.1900 19.7900 21.0700 20.1900 20.6414 19.9744 77.02 74.53 19.30 8.1636 8.3300 7.9600 9.2000 8.3500 8.7305 45.24 ! 42.30 23.82 .5876 .4697 .5204 .4339 .5207 .4811 2.02 j 2.18 19.30 4.6400 4. 2600 5.3300 4. 5900 4. 3744 4.9095 25.44 ; 22.67 40.20 36.9900 36. 3000 38.4700 36.9400 37.6082 36. 6772 93.56 91.24 26.80 15.8700 15.4700 17.2700 15. 8700 16.6641 15.6636 62.18 , 58.45 19.30 15.2000 14. 8500 16.0300 15.1800 15.6927 14.9768 81.31 i 77.60 26.80 25.4400 24. 6500 26.6600 25.4200 26.1495 24. 9488 97.57 j 93.09 19.30 19.4400 19. 3000 19.6000 19. 5200 19.5227 19.4156 101.15 ! 100.60 486. 65 428.7800 418.6500 443.2200 427. 6700 436.2000 422.4780 89.63 ! 86.81 Franc Krone. Franc j Rcichsmark i Lira Florin Krone I Peseta j Krona Franc Pound 28 11 76 80 35 29 8 21 23 i 10 244 20 11 74 68 47 29 9 19 17 10 247 150 Canada Dollar. 100.00 95.5547 93.5469 97.9844 95.6641 96.3114 94. 8222 96.31 94.82 155 Argentina. Brazil Chile Peso (gold) Milreis Peso (paper) 96.48 32.44 3 19. 53 80.6400 12.6100 9.8750 75.3000 12.4200 9. 3750 83.8300 13.0500 11.0000 83. 0800 12. 6800 10.7500 82.5764 13.2459 10.3958 77.1892 12.5752 10.1302 85.59 40.83 53.23 80.01 38.76 51.87 29 China India Japan Shanghai tael... 3 66.85 48.66 Rupee 49.85 Yen. j 68.6400 27.7400 47.2600 72, 4500 27.5800 47.4300 74.2400 28.4400 47.4900 75.1100 27.9700 47.9200 72.1532 28.1427 47.3727 74.1456 27. 8104 47.6244 107.94 . 110.91 57.84 57.15 95.03 95.54 51 23 141 1 37 .7 40 26 163 Noon buying rates for cable transfers in New York as published by Treasury in accordance with act of May 27,1921. Based on average. 1913 average. OTHER COUNTRIES. 2 3 I Low. Monetary unit. February. Austria Bulgaria Czechoslovakia Finland Greece Hungary Poland Portugal Rumania ; Cuba Mexico Uruguay China Hongkong Straits Settlements January. ! Peso... : do. ! I ! 20.26 19.30 20.26 19.30 19.30 20.26 23.82 108.05 19.30 20.26 19.30 0.0199 .6817 1.(5894 1.9857 4.4200 .1425 .0237 7.2400 . 7442 .3055 1.2267 0.0267 . 6933 1.5481 1.8400 4.2200 . 1244 .0288 7.2100 .7375 .3275 1.314 100.00 49.85 j Krone : . . : Lev Krone Markka ! Drachma : Krone ' Polish mark Escudo Leu Average. High. Index (per cent of par).i Par of 'exchange.^ 99.7501 48.6250 99.6462 48.3000 February. January. 0.0389 .7438 1.9713 2.0136 4.4400 .1722 .0356 7.8200 .8340 .3766 1.509 0.0339 .7083 1.9316 2.0214 4.6000 . 1563 .0310 8.0200 .8233 .3316 , 1.3300 I 99.9375 49.0250 February. January. January. 0.0281 .6930 1.8550 2.0029 4.5082 .1497 .0286 7.4895 .7953 . 3235 1.2975 0.0325 .7104 1.7319 1.8871 4.3644 . 1525 .0327 7.6644 .7783 .3430 1.3814 0.14 3.59 9.16 10.38 23.36 .74 .12 6.93 4.12 1.60 6.72 0.16 3.68 8.55 9.78 22.61 .75 .14 7.09 4.03 1.69 7.16 99.8542 99.8542 48.9825 ] 48.8076 99.7256 48.6898 99.85 97.91 99.73 97.67 103.42 do ! Mexican dollar ' Dollar j Singapore dollar 75.6100 I 70.9200 j 82.3700 76.4200 79.2391 72.6472 76.62 70.24 2 48.11 2 47.77 56.78 50.4200 j 52.9000 52.3400 i 54.5100 47.8300 ! 47.0000 54.7800 55.6900 48.2900 52.7445 53.9795 49.2959 54.1040 54.9864 47.9296 109.63 113.00 86.82 112.46 115.11 84.41 i Hased on average. 54.2500 55.2900 50.2500 2 1913 average- Average price of silver per fine ounce: In London (converted at average rate of exchange), $0.66589; in New York, $0.65696. February. 367 FEDERAL RESERVE BULLETIN". MARCH, 1922. F< }RIEION EXCHANGE 1 ND EX 1918 - 1922 IT/ G .NERAL 1NDF E 1GLAND ^MAN\ f ^ AQAI THEHLt *NDS ENTINA HH 1 A P i PERCENT PERCENT 110 110 > PAR- ^* \ 90 80 90 IN \ \ 70 \# N X 60 "v. \ 50 y \ \\ 80 - — ' 70 A v 60 / \ / \i 30 50 40 9" 30 20 £0 •• 10 10 .... N. D. J. F. M. A. M. J. J. A. S. 0. N. D. J. F M. A. M. J. J. A. S. 6. N. D.' J. F. M. A. M. J. J. A. S. 0. N. D." J. F M. A. M. J. J. A. S. 0. N. D. 1918 1919 1920 1921 1922 CONDITION OF PRINCIPAL BANKS OF ISSUE, 1913-1921. BANK OF JAPAN. [From annual reports and weekly statements of the Bank of Japan.] [In thousands of yen.] Dec. 31, 1913. Dec. 26, 1914. Dec. 25, 1915. Dec. 30, 1916. Dec. 28, 1918. Dec. 29, 1917. Dec. 27, 1919. Dec. 25, 1920. Dec. 3.1, 1921. ASSETS. Gold and silver, coin and bullion held at homo and abroad Loans, discounts and advances Advances to the Government (Laws of 1888 and 1890) Other advances Foreign bills discounted "Duo from agents and offices Due from banks and correspondents Due from branches G overnment securities Government securities held as cover for fractional currency lical estate, including bank promises 225,568 78,772 22,000 32,872 44,835 181,749 1,054 6,320 55,530 218,834 25,448 249,269 27,524 413,702 ! 74,242 | 655,931 60,659 725,021 99,195 908,533 289,510 1,234,894 109,233 1,247,031 296,313 22,000 39,109 39,467 162,214 351 5,527 55,922 22,000 43,861 13,300 335,308 108 10,127 43,951 22,000 I 60,108 i 122,006 I 340,167 97 5,676 36,724 22,000 48,995 209,007 477,908 89 7,315 34,774 22,000 48,537 420,847 833,293 20 5,322 32,043 22,000 55,804 340,525 1,005,796 143 18,522 77,453 22,000 05,743 73,478 820,318 30 45,100 190,508 22,000 40,811 76,215 742,668 157 36,334 191,915 2,022 2,023 2,588 2,504 19,825 2,485 91,210 2,291 145,300 2,268 200,000 2,392 216,500 2,367 051,32S 571,495 748,162 2,280,385 2,925,914 2,703,762 2,872,311 Capital paid in Surplus and undivided profits Notes in circulation Government deposits Other deposits Funds for amortization of and interest on national debt Due to the G overnment on account of loans issued Due to banks and correspondents Due to branches Government securities held as cover for fractional currency 37,500 33,318 426,389 85,739 37,500 34,140 300,441 78,194 14,610 37,500 35,062 396,384 185,820 25,564 I 37,500 ! 37,500 !! 50,212 | ^ ,60,799 I l,090;910 ' l,460;327 921,395 I 1,117,279 ! | 53,024 i 43,078 37,500 02,436 1,311,234 940,956 98,581 37,500 52,965 1,546,546 886,659 40,509 32,233 46,540 Total Katio of metallic reserve to deposit and j note liabilities combined—per cent ! 651,328 I 571,495 Total | LIABILITIES. 296 | 30,894! 70 67,807 | 25 37,500 39,075 610,539 331,420 j 29,210 29,522 37,500 41,811 824,105 550,566 33,809 " 31,239 i 14 "109* | 19,825 43.63 I 48.29 35,425 I 91,210 01,139 97,763 1 491 15,262 30 3,222 16 145,300 200,000 216,500 748,162 ; 1,077,286 j 1,538,988 j 2,280,385 ] 2,925,914 2,763,762 2,872,311 52.55 50.41 41.01 . 42.60 I 46.54 35.12 j 30.97 FEDERAL RESERVE BULLETIN. MARCH, 1922. BANK OF ITALY. [From annual reports and weekly statements of the Bank of Italy.] [In thousands of lire.] Dec. 31, 1915. 1,107,633 1,118,188 1,077,364 94,607 104,803 107,890 Gold.. Silver. Dec. 31, 1917. Dec. 31, 1916. 899,686 72,655 Dec. 31, 1913. Dec. 31, 1914. Dec. 31, 1918. 835,852 87,410 Dec. 31, 1919. Dec. 31, 1921. 804,824 75,096 817,759 77,148 Total metallic vault reserve 1,202,240 1,226,078 1,182,167 972,341 923,262 894,907 Notes of Italian Government and of other, including foreign, banks of 4,517 57,774 104,204 142,509 338,457 179,229 issue 14,112 25,756 31,985 6,652 42,494 17,032 Other cash and cash equivalents 757,137 539,828 473,728 886,834 505,968 705,839 Bills payable in Itply Bills payable in foreign countries, in22,125 20,810 87,068 20,901 315,391 72,736 cluding foreign treasury bills 3,524 25,354 20,448 10,914 35,287 24,083 Bills payable, received for collection... 192,582 762,704 126,063 307,013 436,380 151,195 Advances, ordinary Advances to the Government or for 518,812 1,608,534 1,830,749 4,327,128 5,244,870 account of the Government 223,121 204,884 204,916 219,760 Securities 218,650 204,591 Debtors in current account: 10,975 ! 11,082 12,454 381,772 35,508 j 40,025 In Italy 467,924 148,458 j 386,488 775,363 46,524 ' 42,460 , In foreign countries 28,302 26,757 ' 27,794 29,239 28,498 ! 29,259 Bank premises In fiscal account with the Government 95,252 I 252,358 8,822 j 11,740 I 5,122 7,250 and provincial administration 427,183 i 733,995 4,011,591 I 2,344,626 Sundry assets 190,610 j 175,496 4,450,434 | 5,247,288 11,519,414 I 12,484,813 Total., 2,483,252 , 3,283,3 LIABILITIES. Dec. 31, 1920. 819,316 74,985 850,006 74,351 879,920 894,301 924,357 475,611 62,853 1,355,917 381,456 62,920 3,158,819 466,156 64,874 3,895,824 21,568 8,964 1,365,320 20,685 1.1,864 2,294,159 9,435 14,882 4,176,175 7,771,975 212,668 8,036,723 6,407,527 214,176 ! 533,685 369,534 , 1,130,388 I 771,955 : 777 438 29,817 1 35,024 I 640,459 702,084 519,125 348,531 I 375,544 2,656,223 ' 1,682,119! 1, i 16,501,450 j 19,048,603 19,656,979 I 180,000 180,000 Capital paid in 180,000 . 180,000 48,000 48,000 48,000 ! 48,000 Surplus 22,025 17,525 13,025 i 22,025 Extraordinary and special reserves Circulation: For account of commerce ill irA w 1/1,643,637 1,431,642 2,045,993 For account of the Government... |Jl,/64,433 !| » g l 8 8 1 2 1,608,534 1,830,749 1 207,885 : 549,923 865,933 Demand and time deposits 745,888 In fiscal account with the Govern158,831 112,226 86,258 208,912 ment and provincial administration. 111,078 Sundry liabilities 302,119 j 172,830 112,060 Total Ratio of metallic reserve to deposit and note liabilities combined—per cent 180,000 48,000 28,946 180,000 48,000 46,623 180,000 48,000 68,615 180,000 48,000 79,528 180,000 48,000 100,676 2,212,067 4,327,128 1,449,077 3,978,488 5,244,870 1,596,656 4,919,805 7,771,975 2,084,850 7,400,199 8,036,723 2,081,569 8,439,883 6,407,527 2,440,511 290,327 2,983,869 265,954 1,124,222 44,823 1,383,382 2,483,252 | 3,283,369 4,450,434 ; 5,247,288 11,519,414 354,839 1,140,411 899,971 867,745 12,484,813 16,501,450 I 19,048,603 19,656,979 I 60.95 45.20 31.22 i 11.56 20.50 8.27 5.95 : 5.10 5.35 I NATIONAL BANK OF SWITZERLAND. [From annual reports and weekly statements of the Bank of Switzerland.] [In thousands of francs.] Dec. 31, 1913. Dec. 31, i Dec. 31, ' 1914. I 1915. Dec. 31, 1916. Dec. 31, 1917. Dec. 31, 1918. Dec. 31, 1919. i Dec. 31, 1920. Dec. 31, 1921. Gold in vault. Silver 169,956 20,836 237,936 24,913 250,132 j 51,238 j 344,998 52,454 357,644 51,830 j 414,719 58,412 453,114 I 73,649 I 477,743 121,571 1549,521 108,240 Total metallic vault reserve Gold held abroad Notes of other banks of issue Loans and discounts Foreign demand credits Advances on securities Public securities Due from correspondents Bank premises Sundry assets 190,792 262,849 301,370 | 397,452 409,474 ! 473,131 i46,54i 17,103 I '" 2,"484| 190,007 ; 222,319 i 28,385 6,377 21,240 6,480 5,043 19,552 9,329 33,826 6,250 6,828 9,765 588,818 50,069 40,899 8,553 28,073 6,600 8,048 526,763 63,878 12,040 511,603 70,285 32,669 6,638 36,149 5,425 7,721 599,314 65,160 13,261 474,883 3,456 36,630 5,864 34,975 5,427 9,123 1657,761 29,345 196,271 883,666 ; 1,213,956 1,273,171 1,248,093 1,204,266 20,954 ! 8,099 j 30,984 I 6,150 • ' 9,014 ; 22,140 I 6,802 42,944 i 6,644: ! 9,284 1 12,674.. 360,312 45,201 7,295 I 32,921 ! ! 6,008 9,781 18,317 378,123 15,300 75,696 5,407 53,662 404,858 ! 564,250 Total. 583,681 710,069 | 2.% 000 1,147 313,821 59,012 5,878 25,000 1,495 455,889 70,842 11,024 25,000 1,995 465,609 82,710 8,367 25,000 2,441 536,518 129,747 16,363 25,000 25,000 7,441 12,941 975,706 i 1,036,123 187,641 ! 180,856 18,168 1 18,251 25,000 14,441 1,023,712 163,334 21,606 25,000 4,941 1,009,264 128,765 36,296 564,250 583,681 710,069 1,213,956 j 1,273,171 1,248,093 1,204,266 LIABILITIES. Capital paid in Surplus Notes in circulation. Deposits Sundry liabilities... Total Ratio of metallic reserve to deposit and note liabilities combined—per cent 1 Includes gold held abroad. i 51.19 49.90 54.96 59.66 40.67 43.28 50.49 369 FEDERAL RESERVE BULLETIN. MARCH, 1922. BANK OF SWEDEN [From annual reports and weekly statements of the Bank of Sweden.] [In thousands of kronor.] Doc. 31, = Dec. 31, Dec. 31, 1915. 1913. 1914. Gold coin and bullion Silver and other metallic reserve.. Total metallic reserve Checks and sight drafts, including foreign. Current account deposits held abroad Government securities Securities of domestic corporations Bills payable m Sweden Bills payable abroad.. Advances in current account Other advances Sundry assets Total Dec. 31, 1918. Doc. 31, 1919, Dec. 31, 1920. 285,566 281,158 1,015 281,777 2,733 282,173 37, 859 48,750 48,359 5,046 453,369 66,390 285,931 246,057 25,210 i 35,464 19,150 ' 45,667 54,618 59,856 5,046 5,539 186,345 ! 280,306 110,129 70,494 1,396 1,202 121,296 180,544 85,030 92,310 107,336 11,043 30,458 27, 490 3,411 157,268 69, 804 3,303 19, 576 608 I 430,297 503, 590 | 549,204 I 676,523 860,008 1,051,582 50,000 12,500 234,472 109,361 5,918 1,972 7,058 9,016 124,572 2,134 110,425 13,328 16,751 24, 574 3,002 174,938 43,400 "2,505 42,694 71,973 LIABILITIES. 126,706 18,030 51,084 52,156 5,334 113,620 91,141 2,289 24, 880 63,964 I 183,520 2,339 244,457 1,600 : 185, 859 17,170 39,070 62,910 5,692 121,623 122,413 2,498 1,377 : 101,391 I 29,959 1,075,259 I 1,017,519 50,000 12,500 417,537 173,130 4,810 3,598 8,120 6,848 50, 000 12, 500 572,722 197,448 1,934 8,821 50,000 ! 12,500 : 813,534 ! 141,424 318 I 11,477 221,469 ! 5,016 • ' 10,351 i 50,000 12,500 ! 759,877 I 176,773 I 4,899 5,361 16,583 22,329 | 28,361 ; 8,109 I Total i 430,297 ! 503, 590 i 549,204 j 676,523 Ratio of metallic reserve to deposit and note , liabilites combined—per cent ! 26.79 | 27.73 ' 31.47 31.22 ' 860, 008 1,051,582 31.95 29.94 Capital Surplus Notes in circulation Deposits Due to foreign banks Bank ordersl Dividends due and payable to the Government.. Sundry liabilities Dec. 31, 1921. 284,510 48,653 73,561 12,696 4,488 541,188 31,332 1,126 15, 895 4,070 102,133 108,537 5,203 i 1,888 Dec. 31, Dec. 31, 1916. 1917. 50,000 i 50,000 12, 500 12,500 j 327, 880 304,058 ! 108,144 i 129,069 9.019 | 9,955 2,049 ! 2,608 8,800 ! 8,760 9.020 ! 8,426 50,000 I 12,500 i 747,562 i 274,743 11,317 1,054,280 50,000 12,500 627,699 336,105 3,924 4,469 3,500 16,083 1,075,259 i 1,017,519 j 1,054,280 !9.12 30.38 j 29.68 BANK OF NORWAY. [From annual report and monthly statements of the Bank of Norway.] [In thousands of kroner,] Dec. 31, 1914. Dec. 31, 1917. Dec. 31, ! Dec. 31, 1915. i 1916. Dec. 31, 1918. Dec. 31, 1919. Dec. 31, 1920. 121,980 147,724 147,284 147,293 121,980 3,230 147,284 147,293 58,294 504,660 40 815 9,077 7,250 39,064 476,236 Dec. 31, 1921. I 51,630 G old in vault 123,236 116,393 LIABILITIES. Capital Surplus Notes in circulation. Deposits Sundry liabilities... Total Ratio of metallic reserve to deposit and note liabilities combined—per cent 92371—22 8 8,963 6,540 433,841 241 998 13,221 1,073 147,724 4,775 71,419 410,604 114 910 10,563 1,257 644,370 647,366 727,420 i. | 25,000 ! 35,000 11,453 i 17,366 257,854 ! 326,319 j 83,307 226,451 10,361 | 17,024 Total. 38,394 3,327 27,884 119,650 804 1,512 116,393 ! 51,630 I 123,236 15,638 ! 3,089 3,365 i 63,240 I 79,206 76,921 ! 86,343 i 159,711 409,783 | 310 i 551 665 ! 1,256 1,385 ! 1 , 1 0 2 '• 13,440 | 13,091 | 13,394 , 2,428 = 7,486 I 840 : 387,975 j 622,160 . Total metallic vault reserve Held with Scandinavian banks of issue. Held with other foreign agencies Loans and discounts, domestic Foreign bills Real estate loans Securities Sundry assets 35,000 17,048 436,212 127,530 28,580 35,000 15,374 454,281 109,742 35,000 14,000 I 482,611 133,288 62,521 387,975 | 622,160 644,370 647,366 727,420 21.64 26.19 23.91 36.12 I 21.06 69,786 8,792 35,000 14,033 409,781 140,838 370 FEDERAL RESERVE BULLETIN. MARCH, 1922. NATIONAL BANK OF COPENHAGEN (DENMARK). [From monthly statements of the National Bank of Copenhagen.] [In thousands of kroner.] Dec. 31. Doc. 31, 1920. 95,184 37,170 111,312 38,736 10,296 12,042 36,990 162 1 97,452 1 119,718 102,132 Total. 194,624 2,438 226,892 3,308 227, 582 2,603 228,330 3,542 161, 546 41,959 31,686 6,123 9,138 48 57,220 10,411 23, 204 2,480 77,890 176,384 44,918 197,062 89,563 16,652 9,708 29,603 56,020 9,395 24,498 2,955 175,435 230,200 29, 522 42,232 11,546 4,259 25, 518 176,905 15,232 53,554 3,037 163,362 230,185 9,405 36, 389 10,716 4,087 32,119 187,749 3,624 52,816 3,089 232,012 231, 872 22,684 24,877 10, 520 4,000 16,623 136,714 3,447 79, 231 4,173 183,928 485,110 614,887 ; 755,367 802,191 718,069 27,000 10,193 284,864 3,426 60,871 28, 570 5,718 500 663 27,000 14,931 337,864 3,317 54,977 43, 548 2, 877 500 96 27,000 19,749 450,035 3,204 99,323 14,658 27,000 27, 243 489,347 3,087 71,920 135,371 27,000 31,995 556,706 2,966 65,210 117,359 485,110 614,887 . 755,367 42.77 79,434 12,240 173,922 2,462 421,805 Dec. 31, 1915. Dec. 31, 1917. 421,805 | Gold coin and bullion Silver and other metallic reserve. Total metallic vault reserve Foreign credits Danish Government securities Other Danish securities Foreign G overnment securities Notes of and credits with other banks of issue. Domestic bills Foreign bills Loans and discounts Real estate Other assets Dec. 31, 1914. Dec. 30, 1916. 159,877 1,669 1913. 40.11 34.74 ! 32.90 6,417 8,624 31 33, 580 9,907 21,882 3,057 153,428 Dec. 31, 1918. I Dec. 31, ! 1919. Dec. 31, 1921. LIABILITIES. Capital Surplus and special reserves Notes in circulation G overnment deposits Current account deposits Other deposits Due to foreign central banks of issue Profit and loss Other liabilities ; 27,000 | I 151,560 I I 6,894 I 27,000 27,000 206,622 220,416 "ii,"934 ""IB," 570* Total Ratio of metallic reserve to deposit and note liabilities combined—per cent 1 500 899 ' 500 i 418 j I I . 27,000 38,957 470,964 2,840 128,458 48,811 500 ; 455 ! 500 539 802,191 i ! 31.01 j ! ; 718,069 35.61 Includes also some "other assets." CHARTERED BANKS OF CANADA. [From official monthly returns of the chartered banks, supplement to the Canada Gazette.] [In thousands of dollars.] Dec. 31, 1913. Gold and silver in vault Gold heid abroad Dominion notes Deposited with Minister of Finance for security of note circulation Deposit in central gold reserve Notes of other banks Cheques on other banks Loans and discounts Due from banks and bankers in Canada and in the United Kingdom Due from banks and bankers elsewhere Government, municipal, and other public securities Railway and other stocks and bonds Call and short loans outside of Canada Overdue debts Bank premises, other real estate, and niortliabilities of customers under letters of credit Sundry assets Total.. Dec. 31, I Dec. 31, 1917. j 1918. 25,945 19,478 104,778 38,746 42,583 23,824 25,413 138, 056 j 145,548 6,651 7,597 14,777 60,899 988, 032 6,733 9,700 13, 063 48,991 955,449 14,127 25,601 M ! « 55,349 26,684 167, 509 44,506 26,666 124,750 60, 928 18, 388 175,745 62, 553 17,535 172 964 62,582 59,651 20,106 I 19,200 177,489 | 195, 731 6,302 5, 947 5,770 6,529 re,86i 5,558 6,775 I 113,353 125, 800 68,453 97,270 130,900 43, 700 ! 17,360 53,502 50, 880 36,138 24, 079 31, 379 19,702 j 15,103 149,970 109,315 145,524 95, 599 116,359 76, 836 ! 63. 809 1, j 968, 081 1,009,341 j1, 088, 020 j 323, 018 1, 559, 777 1, 669, 562 1, 504, 999 17,901 i 35,427 | 43,792 I 74,144 ' 33, 290 74,108 115,985 4,538 33,605 72,056 85, 013 6,188 45,475 51, 893 54,459 i 57,018 8,556 4,426 12,248 6,667 9,126 ' 5,517 ! 9,131 4,604 55, 727 • 198,671 66,769 I 64,108 137,158 I 173,878 6,632 5,761 20,367 ! 51,356 | 19,705 43,221 24, 787 60,794 412, 797 ! 460,453 55,609 I 53,138 134,483 ' 150,248 . 4,859 i 4,543 32,063 i 50,449 ! 405,020 54,958 172, 232 4,528 30,771 82,327 311,662 46,495 211,443 6,636 323,642 44, 021 169, 859 8, 444 19, 027 62,324 58,860 j 60,238 ! 64,046 j 67,364 77,348 ! 21,981 : 2,571 33, 670 !, 2, 042 51,188 3,583 | 43,751 3,664 22,986 4,324 1,554,263 1,555,560 1,737,996 1,948, 045 2,323,163 j 2, 689, 833 i 2, 967,374 J 3, 050, 979 2, 746, 733 LIABILITIES. Capital paid in. Reserve Notes in circulation , Due to Dominion and Provincial Governments , Other deposits Due to banks and bankers in Canada and in the United Kingdom , Due to banks and bankers elsewhere Bills payable Acceptances under letters of credit Sundry liabilities Total i 114, 809 112,118 113, 917 113,071 113,988 | 113,346 112,457 I 113,383 111,674 114,101 109,492 , 119,199 | 128,067 116,016 ' 124,713 j 133, 049 129,317 128, 073 108,646 105,970 122,200 | 148, 785 192,924 224,501 ! 232,487 | 228,759 184,603 32,309 1,109,971 20,603 8,267 16,537 8,556 3,866 41,554 47,117 43,009 1, 111, 641 1,279,330 1,467,076 24,628 7,916 7,961 12,248 2,729 22,364 10, 800 3,850 9,071 4,551 12,729 17, 595 5, 242 8,131 4,381 82,781 137, 989 150,161 269,684 243,960 1, 740,199 1,876,353 i2,116, 822 2,307,275 2,052,471 13,667 19, 842 3,480 21,981 6,861 14,502 23, 794 917 33,670 4,830 18,956 33,913 6,381 51,188 3,009 17, 471 29,218 10,415 43, 751 3,431 18,407 30,236 11,167 2,319 2,472,350 1,314,647 1,499,283 | 1,708,948 2, 081, 735 2, 448, 251 i 2, 706, 716 : 2, 778,309 I 1 Exclusive of capital, surplus, and undivided profits. 1,308,755 371 FEDERAL RESERVE BULLETIN. MARCH, 1922. CONDITION OF MEMBER BANKS. ABSTRACT OF CONDITION REPORTS OF STATE BANK AND TRUST COMPANY MEMBERS IN EACH FEDERAL RESERVE DISTRICT ON DEC. 31, 1921. [In thousands of dollars.] DisDis- i DisDistrict I trict trict trict No. 3 | No. 4 No.l No. 2 (51 ! (115 (133 (40 banks). banks). banks).: banks). District Total United States (1,614 banks). RESOURCES. Loans and discounts 451,8751,974,510; 182,378: Overdrafts .... 428j • 268 268 428| 85 Customers' liability on account of acceptances 306 99,6611 7,450 16,231 9,281 U. S. Government securities 8,922! 100,640 35,871 332,626 32,300! Stock of F. It. Bank 2,272, 1,368 5,571 11,258 2,261 Other bonds, stocks, and securities 105,058 509,917 101,427 175,901 Banking house, furniture, and fixtures 25,592, 4,527 13,776 31,484 12,2631 2,596j 2,87 12,863 65,630 10,196 Other real estate 918 2,230! 2,556 1,737! 906 26S 9,9051 1,593 4,5001 2,763j Gold and gold certificates 367 277 1,638 257 165 312! 19C 1,449 ; 2,969' All other cash in vault 2,612: 4,976 28,438 5,283: 2,037 1,490 12,736 36,8811 4,496! 13,797 Reserve with F . R. Bank 48,009 13,493; 91,386 23,784J 4,594 9,304 41,688: 307,720J 21,661j 6,182 Items with F. R. Bank in process of collection 16,263 7,37o' 14,678 10,117; 1,184J 4,682 11,072 45,177 5,139; 2,501 Due from banks, bankers, and trust companies 27,879 27,548i 73,615 23,87o| 10,030i 15,288 79,072: 19,856 13,509 10,144 Exchanges for clearing house; also checks on other banks in same place 3,070 14,475 1,105 7,115 9,319| 174,104 7,823! 32,479 2,524 Outside checks and other cash 2,7 37J 1,738| 12,882 1,359 items 2,026| 11,400 617 374 United States securities bor7,686 271 488! 3,065 rowed 40J 5,374 7, OSli 10,319 29 191 71j I 215 40 , Other securities borrowed 256 2,092 6,248j 245 ' "8," 725 '"7," 2671 4,080| 11,451 2,137! '3,700 Other assets.' Total. LIABILITIES. 142,896 674,353 33,512 1,398,542 3,469 2,022 103 2,571 5,471 1,61 10,39' 1,436 489 27,403 212,671 3,315 32,804 908 8,727 13,219 128,536 41,785 615,082 7, 127,131 47,835 359,043 16,297 270,613 9,203 44,133 855 311 35,710 30 25 381 2,169 5,493 123,863 724,5233,734,967j 389,5201,019,144! 153,148! 333,829,1,709,952 417,959] 126,896 151,183 124,654 959,085 9,904,860 I Capital stock paid in 36,411' 186,867 Surplus fund 38,939! 178,510 Undivided profits, less expenses and taxes paid 15,788 68,737 Amount reserved for interest and taxes accrued 3,12" 13,187 Due to F. R. Bank 478; 2,964 Due to banks, bankers, and trust companies 29,466 294,809 Certified and cashiers' or treas5,079| 91,391 urers' checks outstanding 408,82()!2,224,301 Demand deposits 158,992, 441,251 Time deposits... United States deposits 8,4111 47,733 j Bills payable with F. R. Bank.. 4,834; 30,745; Bills payable with War Fi248L nance Corporation Bills payable other than witn F. R. Bank and War Finance Corporation 720 465! Cash letters of credit and trav2 10,771 elers' checks outstanding Acceptances executed for cus9,422;' 99,531 tomers Acceptances executed by other banks for account of report4,8 ing banks 604 United States securities bor5,374 rowed 40 40 Other securities borrowed 33,425! 3,"l42 Other assets Total. Liability for rediscounts with F.R.Bank Liability for rediscounts other than with F. R. Bank 5,692,229 4,634 26,770 49,647 65,189! 15,623j 27,942: 100,299 81,623, 9,966- 17,700; 13,261 16,032' 3,357J 3,703: 27,652 1,287 1,091 2,526 K0 ° 588 367 442 740 154 8,961 59 10,605 44,421 8,161 32,503; 2,497 191,342 56,846 17,757 343,348 392,894 14,053 17,260 8,391 16,655 30,517| 10,452 22,594, 3,946 9,960 3,744 15,355 6,356 60,704 24,665 524,574 6,263; 1,619 2,168 1,207 10,328 170,115 1,1801 14 216 145 276 759 7,785 26,675 6,016 1,925' 6,669i 14,550 1,398 7,198 55,987 130,325 614,933 160,6161 39,175 47,967| 87,584: 768,432 126,450 54,167 2,4731 3,623i 17,491 2,886 765 8,008, 1,819 3,975 3,248' 26,198 5,564 63,554 27,901 2,691 4,529 452 1,626 j l,130| 30,969 65,528 1,146 I 1,104 207 3,631 111 1, 4,096 306 7,081 2,586 10,319 215 4,504 32,947 6,639 30,937 587,875 1,975 17,484 173,487 66,135 273,964 1,572,500 19,002 520,624 1,702,110 584 2,338 120,308 1,912 6,505 116,819 735 143 5,165 j 8,388 5,492 3,261 4,005 2,754 16 126 31 5 40 379 8,125 17,044 1,703 4 19 439 935 83 173 311 488 3,067 7,686 137| 1,472 11,917 8,512 2,930 3,286 94 36,997 1,131 125 2,311 144,177 191 29 238 91 855 25 405 3111 30 4,318| 12,491 25 5,687 35,752 381 70,747 724,523J3,734,967| 389,5201,019,144 153,148 333,8291,769,952 417,959i 126,896 151,183 124,654 959,085 9,904,860 • " • • • • • • • : I 20,889| 47I 19,682; 86,! 3,382 41,128 7,971 31,271 37,168 1,043 281 1,106 2,671 18,120 19,800j 1,534| - 4,836 572 5,325 616 515 • • 7,176 206,511 27,522 372 FEDERAL RESERVE BULLETIN. MARCH, 1922. ABSTRACT OP CONDITION REPORTS OF STATE BANK AND TRUST COMPANY MEMBERS OF THE FEDERAL RESERVE SYSTEM ON DEC. 31, 1921, BY CLASSES OF BANKS. [In thousands of dollars.] Central reserve city banks. New York (30 banks). Chicago (14 banks). St. Louis (10 banks)- Total United States. Total (54 banks). Other reserve city banks (192 banks). Country banks (1,368 banks). 2,185,076 2,122 25,623 233,922 13,374 591,521 96,695 20,154 2,410 50,494 195,376 64,488 161,833 1,469,113 2,105 2,016 153,633 8,415 382,577 61,637 10,148 3,157 42,943 96,963 16,998 107,820 5,692,229 4,634 142,896 674,353 33,512 1,398,542 212,671 32,804 8,727 128,536 615,082 127,131 359,043 5,772,959 4,619 174,284 644,043 33,196 1,405,300 198,518 29,060 13,125 143,063 584,457 120,763 338,151 270,613 44,133 35,710 381 123,863 368,894 39,377 9,904,860 10,009,135 586,089 524,574 585; 530 531,918 Dec. 31, 1921 (1,614 banks). June 30, 1921 (1,595 banks). RESOURCES. Loans and discounts Overdrafts Customers7 liability on account of acceptances. U. S. Government securities Stock of F. R. Bank Other bonds, stocks, and securities Bankinghouse, furniture and fixtures Other real estate Gold and gold certificates All other cash in vault Reserve with F. R. Bank Items with F. R. Bank in process of collection. Due from banks, bankers, and trust companies, Exchanges for clearing house, also checks on other banks in same place Outside checks and other cash items U. S. securities borrowed Other securities borrowed Other assets 437,141 55 15,803 25,950 2,317 102,172 2,894 66 731 9,884 48,879 8,974 29,883 122,438 30 793 ' 4,740 841 28,567 5,673 428 49 6,587 2,038,040 407 115,257 286,798 11,723 424,444 54,339 2,502 3,160 35,099 322,743 45,645 | 89,390 164,974 8,869 276 40 68,269 19,240 7,696 188,964 17,156 4,778 101 77,913 66,255 20,167 20,194 8,954 4,750 591 4,502 61 690 33,841 15,394 6,810 10,738 280 12,109 2,795,902 Total. 1,478,461 322 98,661 256,108 8,565 293,705 45,772 2,008 2,380 23,557 260,906 30,109 52,920 720,639 201,918 3,718,459 3,783,545 2,402,856 132,400 141,661 35.150 42,090 13,325 14.815 180,875 198,566 224,952 223,586 180,262 102,422 51,655 14,585 2,931 69,171 57,012 43,932 170,115 170,389 11.137 203 267,687 7,193 656 42,094 11,806 18,986 203 321,587 8,130 1,678 217,986 5,83.1 4,758 48,302 32,947 6,639 587,875 49,750 5,915 556,184 85,538 1,754,882 157,659 40.525 7,500 7,498 319,428 214,164 12,788 5,531 78,719 60,140 2,312 3,409 98,567 2,153,029 431,963 55,625 10,977 59,743 1,459,957 1,332,167 51,841 59,442 1,408 15,177 959,514 937,980 12,842 46,400 3,757 173,487 4,572,500 2,702,110 120,308 116,819 5,165 226,934 4,585,885 2,671,593 142,457 164,189 13,545 23,166 36,997 55,489 10,699 98,531 65 16,629 10 793 10,774 115,953 1,692 26,324 25 1,900 12,491 144,177 ! 18,998 178,483 4,502 61 2,622 5,039 4,778 101 41,979 1,658 12,958 6,562 139,326 LIABILITIES. Capital stock paid in Surplus fund Undivided profits, less expenses and taxes paid Amount reserved for interest and taxes accrued Due to F. R. Bank Due to banks, bankers, and trust companies.. Certified and cashiers' or treasurers' checks outstanding Demand deposits Time deposits U. S. deposits Bills payable with F. R. Bank Bills payable with War Finance Corporation . Biils payable other than with F. R. Bank and War Finance Corporation Cash letters of credit and travelers' checks outstanding Acceptances executed for customers Acceptances executed by other banks for account of reporting banks U. S. securities borrowed Other securities borrowed Other liabilities Total . Liability for rediscounts with F. R. Bank Liability for rediscounts other than with F. R. B ank Ratio of reserve with F. R. Bank to net deposit liability (per cent) 4,866 | 276 40 ' 30,643 ; 8,714 2,795,902 i 720,639 5,555 l 12,004 173 201,918 j 3,718,459 4,803 13.0 10,780 280 23,240 \ 5,687 ! 35,752 I. 381 i. 70,747 3,783,545 I 2,402,856 2,479 62,942 9,904,860 I 10,009,135 13.2 22,362 117,507 j 66,642 206,511 344,571 15,654 15,654 13.6 648 j . 20,194 | . 5,219 | 6,649 27,522 20,849 13.5 10.2 I 7.1 10.8 10.4 373 FEDERAL RESERVE BULLETIN. MARCH, 1922. ABSTRACT OF CONDITION REPORTS OF ALL MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT ON DEC. 31, 1921 (INCLUDING 8,165 NATIONAL BANKS AND 1,614 STATE BANKS AND TRUST COMPANIES). [In thousands of dollars.] District District j District District District District District District District No. 2 No. 3 No. 7 No.l No. 4 No. 5 No. 6 No. 8 No. 9 (1,442 (795 I (704 (436 (625 (883 (512 (585 (1,017 banks). banks). I banks). banks). banks). banks). banks). banks). banks). District District i District ! No. 10 No. 11 ! No. 12 (851 (837 i (1,092 | banks). banks). banks). Total United States (9,779 banks). I RESOURCES. Loans and discounts.. 1,251,439 4,788,2311,002,587 1,526,900 805,127 606,916 2,559,283 Overdrafts 519 1 242! 317 782 901 1,380; 1,965 Customers' liability on account of acceptances 44,239 200,804' 10,554 7,038 10,136, 9,757l 35,472 U. S. Government securities 271,586 150,261 j 100,213 303,732 161,6-19J 821,531 j 230,079 Other bonds, stocks, and securities 276,623! 1,108,080| 441,012 465,753 101,485| 66,053 ! 471,001 Banking house, furniture, and fixtures 44,039 76,388 41,119| 127,669 38,552 j 31,9501 92,507 Other real estate 6,166 7,449: 9,451 15,063 •!•' 4] 2 4,735. 7^910 Cash in vault 34,645 38,463! 109,541 50,412! 24,2891 19,612' 80,389 Reserve with F. R. Bank 110,440 724,373' 104,413 132,128 58,02ii 44,357 235,593 Items \yith F. R. Bank in process of collection 40,717! 120,976! 44,054 31,598! ]7,3-13; 57,649 43,987 Due from banks, bankers, and trust companies 90,049 153,5901 91,794 120,055 71,059i 84,367' 247, C Exchanges for clearing i j house; also checks ! on other banks in j same place 30,139 462,376| 40,980 32,853 17,130j 15,967' 79,619 Outside checks and other cash items 7,568J 25,80l' 5,397 5,539! 4,078 19,007 5,913 Redemption fund and i • j due from U. S. ! Treasurer 2,535 4,5111 2,919 4,917 3,259i 2,163! 4,354 U. S. securities borrowed1 40 5,374' 7,081 10,319 271 j 488 : 3,065 Other securities borrowed i 40i. 215 19,549 175,1827,498 Other assets 9,877 " -i,63J| 4,933' 18,3 i Total.. 716,828 1,200 3,127 102,937 666,77o' 795,697 549,227ll, 402,273 16,671,278 14,582 1,826 1,825J 8171 ! 2,725 3,5011 12,742: 343,559 2, S64j 75,249]. 20,4581 6,069! 17,166j 33,726' 4,80l| 25,035 30,933! 8,345, 19,039! 263,497i 3,512,891 i 67,295i 612,503 8,418| 87,152 41,908; 478,416 65,171 43,537! 22 72,322 45,305' 122,678 1,758,341 33,098 I 8,308i 30,681. 21,784 77,350 87,079 156,266 81,728 115,651 176,681 187,783 186,936 105,219 76,492 55,487 2," 68,821 1,980 477,042 186,231 1,449,637 1 i 20,314 8,745 17,405 11,029' 40,852 777,439 3,073 5,267, 4,143 4,585| 15,962 105,333 2,173 1,724. 2,326 2,53S| 3,253 36,672 29 855 311 35,710 7,686 71 3,424 2,836, 166,234 167,183 11,530 29,992 890,630 1,078,630 829,679 466,531 31,965 29,405 66,391 43,146 10,083 25' 4,6871 18,7- 381 276,749 97,027 52,237 88,4951 49,107! 165,214 79,832 867,821 557,475 22,650'29! 21,653 209 17,535, 2,479! 38,956 .528 667,711 25,521 86,841| 190,880 97,764 55,974 76,76()i 41,550| 27,879 6,056 18,344; 607' 95,333 741 24,379 192 96,766 81,81.4, 411,911 i 127,335 9.115 11,875 31,325 490,636 404,588|l,617,085 362,8611 246,313 1,285,597 13,235 9,445! 37,466 10,667 505,192 284,143 8,106 39,796 28,420J 55,177 1,612! 2,960 580 ! 11,556 11,934 166 1,453 24 9,805 7,658 10,209 1,211 23 75,377 j 189,143 2,834,645 i 29,397 20,129 10,9J9| 347,491j 620,218 456,524 ; 563,010 242,616 104,835J 10,321 8,834 8,325: 15,806 19,719 3,738 3,875 I 83,595, 276,252 55,693 ! 202,932 I S 10,70l! 1,222 52,435 438,336 967,403 13, 176,122 8 0 8,3 6 1 ,450,629 808,361 306,103 15,092 1,018j 22,773 498,708 i 4,305 790 16,540 15,680: 15,628 140,056 I 18,341 16,062 16! 1,028 18 I 25' 117 43j 560 16,437 3,129 2,206 2,675 3,416J 13,053 346,555 15,251! 10,346! I 35,963 17,253 231 847 22,245 46,467 48,613: 64,377 716,968 661 357' 1,508 57,408 95,156 61,695 42,852! 85,989 42,259 13,466 25,074 8,630 3,768 9,364 13,013 1,5 4,449 2,362 3,895 102,675 6,103 817 6,957 66 2,300 356; 2,090 102 17,883 215 10,157 3 1,230 538 1,141 264! 2,872 523 6,978 6,121 125,810 33,751 2,122,537 8,838,778 2,073,565 2,774,786 1,326,6741,017,342 4,216,957 1,210,9351,027,9791,352,739 907,798 2,446,388 29,316,478 I 52,317 71,428 26,088 »By State and bank trust company members. 26,847 2,122,537! 8,838,778! 2,073,565 2,774,786 1, 326,674 1,017,34.2,1,216,9571,210,935 .1,027,9791,352,739 907,798 2,446,388 29,31.6,478 . Capital stock paid in.. 139,913 434,145 124,750 455,2851 Surplus fund Undivided profits, less expenses and taxes 64,190 212,4841 paid 3,177 Due to F. R. Bank.... 6,53o! Due to banks, bank! ers, and trust com136,226 1,104,935j panies Certified and cashiers' or treasurers' checks 14,193 206,729 outstanding 1,079,212k (J88,5131 Demand deposits 408,7781,047,905 Time deposits '"" « 25,445 108,464 U.S. deposits Bills payable with 18,463 169,450 F. R. Bank Bills payable with War Finance Cor248 07 oration Is payable other than with F. R. Bank and War Fi3,654 2,729 nance Corporation.. Cash letters of credit and travelers' checks 130 12,857 outstanding Acceptances executed 44,062 204,033 for customers Acceptances executed by other banks for account of reporting 3,522 14,093 banks National-bank notes 88,674 49,727 outstanding . U. S. Government se15,342 2,043 curities borrowed Other bonds and se184 3,053 curities borrowed... 4,614 63,485 Other liabilities.... Total.. $9,174; 233,543 2,647,793 30,218, 29,867 4,330 17,887 LIABILITIES. Liability for rediscounts, including those with F. R. Bank 107,839 87,832) 122,399 73,874 59,725 76,500j 153,176 46,237 44,784 60,738 I 42,633; 50,139 757,639 374 FEDERAL RESERVE BULLETIN. MARCH, 1922. ABSTRACT OF CONDITION REPORTS OF ALL MEMBER BANKS OF THE FEDERAL RESERVE SYSTEM ON DEC. 31, 1921, BY CLASSES OF BANKS (INCLUDING 8,165 NATIONAL BANKS AND 1,614 STATE BANKS AND TRUST COMPANIES). [In thousands of dollars.] Central reserve city banks. Other • reserve city St. Louis Total (103 New York Chicago (30 banks). (28 banks). (17 banks). banks). (568 banks). Total United States. Country banks (9,108 banks). Dec. 31, 1921 (9,779 banks). June 30, 1921 (9,745 banks). RESOURCES. Loans and discounts Overdrafts Customers' liability on account of acceptances. U. S. Government securities Other bonds, stocks, and securities Banking house, furniture and fixtures Other real estate :.. Cash in vault Reserve with F. R. Bank Items with F. R. Bank in process of collection. Due from banks, bankers, and trust companies. Exchanges for clearing house, also checks on other banks in same place Outside checks and other cash items Redemption fund and due from U. S. Treasurer United States securities borrowed i Other securities borrowed 1 Other assets 3,609,659 838 197,829 ! 577,780 j 567,705 78,907 4,038 70,849 612,859 87,538 72,123 962,496 367 33,378 42,374 143,060 16,862 178 26,393 121,463 29,901 97,158 280,763 54 1,715 19,081 47,130 11,705 3,818 3,480 31,377 21,630 22,072 4,852,918 1,259 232,922 639,235 757,895 107,474 6,034 100,722 765,699 139,069 191,353 5,309,004 4,063 98,770 711,887 1,027,070 223,389 34,681 133,926 514,898 275,265 577,878 6,509,356 9,260 11,867 1,296,671 1,727,926 311,640 46,437 243,768 477,744 62,708 16,671,278 14,582 343,559 2,647,793 3,512,891 642,503 87,152 478,416 1,758,341 477,042 1,449,637 16,894,785 14,588 412,571 2,661,078 3,443,577 608,812 80,786 529.764 1,624,662 448.765 1,353,614 445,270 19,419 49,871 9,160 13,994 1,104 509,135 29,683 205,419 45, 999 62,885 30,651 777,439 106,333 1,085,375 100,607 1,955 276 40 167,069 30 487 4,502 61 1,273 2,472 4,778 101 180,381 8,964 20,194 69,000 25,236 10,738 280 27,368 36,672 35,710 381 276,749 344,011 462,246 | 8,521,130 9,260,407 11,534,941 29,316,478 29,639,259 431,375 466,156 571,359 511,188 865,087 580,131 1,867,821 1,557,475 1,858,710 1,557,719 215,980 338 1,378,739 196,880 6,418 1,156,643 254,851 18,765 299,263 667,711 25,521 2,834,645 716,076 24,593 2,688,096 146,548 74,605 3,954,354 4,683,851 2,018,842 3,813,855 136,068 : 47,409 152,847 , 219,163 438,336 13,176,122 6,450.629 306; 103 563,443 13,292,177 6,366,632 389,910 616,557 12,039 6,514,154 I 1,544,730 ! Total., LIABILITIES. Capital stock paid in Surplus fund Undivided profits, less expenses a n d taxes paid Due to F . R. Banks Due to banks, bankers, and trust companies.. Certified a n d cashiers' or treasurers' checks outstanding-. Demand deposits Time deposits United States deposits - Bills payable with F . R. Bank Bills payable with W a r Finance Corporation . . I Bills payable other t h a n with F . K. Bank and War Finance Corporation Cash letters of credit a n d travelers' checks outstanding Acceptances executed for customers Acceptances executed b y other banks for account of reporting banks National bank notes outstanding U. S. Government securities borrowed Other bonds and securities borrowed , Other liabilities Total. 301,500 356,706 161,765 338 1,036,068 278,054 193,880 3,617,581 295,094 92,375 122,120 16,034 724,800 232,979 24,657 241 12,779 201,105 871 33,913 14,016 38,297 8,468 2,941 59,011 1,471 599 27 6,514,154 10,750 | 1,544,730 | 17 ' 1,715; 9,399 6,256 61 3,544 15,132 946 110 By State bank and trust company members. 7,269 ! 217,183 195,536 i 4,537,917 89,859 i 67,9 617,932 5,594 " 122,626 4,337 1,408 ! Liability for rediscounts, including those with F. R. Bank Ratio of reserve with F. R. Bank to net deposit liability (per cent) 1 64,617 38,084' 101,026 13,667 236,733 2,509 | 98,058 ; 15,487 48,295 14,751 3,002 73,305 6,513 173,191 ! 52,178 ; 1,161 ; 36,158 ! 462,246 | 8,521,130 498,708 16,540 195,684 261. 11,764 140,056 16,437 346,555 25,185 418,165 245 495,482 35,746 1,958 16,347 22,245 716,968 102,675 6,121 125,810 13,722 703,654 100,324 2,830 105,782 9,260,407 I 11,534,941 29,316,478 29,639,259 39,785 51,200 10,664 101,649 317,444 338,546 757,639 1,243,764 14.1 13.3 13.1 14.0 10.4 7.5 10.5 9.8 MARCH, 375 FEDERAL RESERVE BULLETIN. 1922. SYSTEM ON DEC. 31, 1921. [In thousands of dollars.] Dis- District DisDisDisDisDistrict 1 Dis- l trict trict trict i trict . trict trict trict trict No.l No. 2 No. 7 No. 8 No. 3 No. 4 No. 5 No. 6 (66 (40 (133 (51 (115 (127 (377 (105 ! banks). banks). banks). banks). banks). banks). banks). ! banks), I DisDisDisDistrict trict trict trict No. 9 No. 10 No. 11 No. 12 (202 | (219 (44 (135 banks). banks). banks).! banks).| Total United States (1,614 banks). 1 On demand: Not secured by collateral 33,706 71,906' Secured by U. S. Government obligations 29,392 2,482 Secured by other collateral... 75,712 644,368 On time: Not secured by collateral 209,6391 769,974 Secured by U. S. GovernI ment obligations 12,65l'i 67,162. Secured by other collateral... 67.5001 316,176 Secured by real estate deeds of I , trust or other real estate liens... 69,229' 78,273 Acceptances of other banks dis! j counted 1,928. 29,371, Acceptances of this bank purl,302i 20,119'. chase or discounted Customers liabilities on account of drafts paid under letters of ! ! 266 credit Loans and discounts not classi1 fied I I 13,545 3,493J l,912j 3,428! 19,905' 4,658 7,051 902 4651 6,9941 • 1,839! 92; 379] 120,152. 11,567, 35,723. 136,055! 43,699' 204 6,333! 4 5,526 162 7,064 104,104! 32,011 32,808 8,730 29,488| 2,186 6,834 36,008, 40,410 227, 454 55,705 93,455j 439, A 8,9ol : 17,211; 19, 426 91, 024 4,741 28,123 10,402 22,445 234,732 13,360 153,926 9,088 268 991 743 113 50 17,976! 21l! 18 2,549| 255,211 5,755 67,058: 38,825; 27,731 161,9112,191,611 1,637' 2.7211 848 29,429: 30; 982, 41,122 20,298 9,359, 955,231 79; 10,749 i i 616 306; 52,391 281 655 7,317i 163,560 78,0281,073,498 10,045' 279,641, 226 2,806 526 1,270 ....! i 72, 113: 5,259' 231,141 l,824i 55,977 27,648'1,206,226 27,115 36 IL 1,743 699 3701 311 Total loans and discounts..! 474,149 2,027,007 186,803 650,852 112,3371 240, lOl'l, 138,140 278, • 93.912! 83,350; ' I I 2,424 4,788 238 93,519 587,622 5,966,281 FINANCIAL STATISTICS FOR ENGLAND, FRANCE, ITALY, GERMANY, SWEDEN, NORWAY, AND JAPAN. A summary of banking and financial conditions abroad is presented statistically in the accompanying tables. Similar material will be published regularly each month" in the BULLETIN. BRITISH FINANCIAL SITUATION. floating debt. : ! land and Treasury. Nine London 3 clearing banks. gdo [Amounts in millions of pounds sterling.] Discount rates. Dis c p I 3, O 5 i Tre 3 el In c/i II © II r "El •a © Average of end of month figures: 1913 1920 1921 1921, ond of— February July August September October November December 1922, end of— January February 1 2 3 I I * a ; a -So " !B i 1 5 1 9x 3 I o 38 146 157 15 1,078 1,139 157 157 157 157 157 157 157 1,110 1,202 1,166 1,159 1,124 1,108 1,060 29 103 108 348 327 108 109 107 106 104 106 107 336 325 319 314 312 313 326 57 j 147 136 I j 127 I 122 : 137 ; 118 I 175 ! 144 i 123 I 103 102 305 298 135 I 157 1,039 138 ' 157 Per Per Per cent. cent. ' cent. 219 182 189 150 180 361 214 193 200 1,297 : 1,822 I 97 1,176 ; 1,299 88 1,172 1,355 104 1,191 1,347 100 ", 179 . 1,321 , 186 99 1,338 102 , 196 1,300 96 ,205 1,260 108 ,191 116 1,154 114 111 ,192 ,152 309 1,768 41 I 4|J I 1\ \ 101.6 "" ! 120.1 306 1,754 306 1,785 302 1,764 302 1,771 306 1,802 311 1,793 315 1,8.18 120.9 112.9 113.0 114.6 121.7 128.1 127.3 333 357 Per cent. 11.7 15.2 10.3 132.6 1,826 1,802 8.4 Less notes in currency notes account. Held by the Bank of England and by the Treasury as note reserve. Average weekly figures. * Compilation of London Joint City and Midland Bank, British Government loans for national purposes excluded. Revised figures. 6 Compilation of London Economist. Ratio of net profits to ordinary and preferred capital of industrial companies, exclusive of railways, mines, insurance companies, and banks. Applies to earnings disclosed during the quarter and has therefore a probable lag of six months. 376 FEDERAL RESERVE BULLETIN". MARCH, 1922. FRENCH FINANCIAL SITUATION. [Amounts in millions of francs.] Bank of France.* Silver De- 2 Gold reserves. reserves, j posits. 1913, average 1920, average 1921, average 1921— February July August September October November December 1922. January February 3,343 8 3,586 " 3,568 ; \ i i I j 629 | 253 274 9 3,555 9 3,573 9 3,574 9 3,575 9 3,575 9 3,576 9 3,576 » 3,576 »»3,577 Situation of the Government. Value of Savings new : stock 1 banks, Average excess daily and Advances of dePrice of to the bond posits^) clearings Govern- Govern- Internal External 3 per of the Circula- ment for | ment or Paris placed tion. debt. 5 cent per- upon the withpurposes j revenue/ debt. petual banks. drawrente. 6 French7 als (-). of 3 the war. market. 830 ! 5,565 3,527 38,066 2,927 ! 37,404 26,042 ! 25,300 320 1,005 1,103 264 I 275 277 . 277 278 279 280 3,293 3,252 2,749 2,509 2,563 2,563 2,743 25,600 25,100 24,900 24,900 25,100 24,500 24,600 921 ; . 1,242 : 229,055 1,016 j. 1,011 ! . 1,305 . 1,051 . 1,228 ; . 280 281 2.392 2; 429 i ! j ' 37,808 36,911 36,783 37,129 37,154 i 36,336 ! 36,487 36,433 j 36,151 ' : ! i I 86.77 j 57.34 ! 56.56 : 35,000 35,286 1,861 2,345 152 234 3,355 434 853 56.55 59.55 1,323 : . 23,000 22,500 58.15 56. 35 56. 50 56.20 54.30 54.90 54.75 - 65 4,654 1,098 + 48 + 67 + 181 + 52 + 72 + 68 + 33 -0.5 + 38 + 41 10 554 550 591 438 467 553 463 505 527 489 I 1 End of month figures. 2 Includes Treasury and individual deposits. 3 Under the laws of Aug. 5 and Dec. 26, 1914, July 10,1915, and Feb. 16,1917. 4 From indirect taxation and Government monopolies. 3 Foreign debt converted to francs at par. 6 Last Wednesday in the month. 7 Figures of the "Association Nationale des Porteurs Frangais de Valeurs Mobilieres." Bonds issued by the Government and the railroad companies not included. » Not including 1,978,000,000 francs held abroad from January through August and 1,948,000,000 francs from September through December. » Not including about 1,948,000,000 francs held abroad, w Average for 11 months. ITALIAN FINANCIAL SITUATION. [In millions of lire.] Leading private banks. 1 Government finances. Banks of issue. I Loans, Deposdiscounts, its and Loans Gold due to and Cash redis- IdnStom correi corre- spond- counts. serve. j spond- ents. i ents. i 129 1913, end of December.. 19^0 end of December . 1,297 . ] 92l'Average 1921, end of— 1,140 July 1,131 August 1,052 September 1,364 ' October 3 1,174 November Depos- Com- CirculaTOM » - * mer- tion for State cial account curcircu- of the rency lation. state. notes. i ties. s*™- Si 7,509 2,007 1,674 16,851 16,704 17,024 16,672 17,223 16,825 15,413 17,022 3 12,844 312,778 1,375 1,058 1,074 1,661 : 318 2,077 : 2,020 2,352 7,156 7,315 7,327 7,816 7,810 10,020 1,076 1,079 1,073 1,086 1 089 1,092 1,990 1,964 1,966 1,990 1,948 1,999 857 : i ; ' ' : 2,290 2,143 2,124 2,243 2,151 2,913 2,284 8,988 9,304 10,743 9,064 9,433 9,491 9,785 9,746 9,435 10,304 8,507 8,352 8,395 8,554 8,485 8,505 Treas- Shortterm ury metal- treasury lic reserve. bills. 493 117 2,546 348 2,546 Principal revenues from Total public taxation and modebt. nopolies during month. 2 13,200 20,276 21,173 108,729 21,612 22,997 110,754 1,029 691 1,381 564 1,404 648 1,458 1 1 Banca Commerciale Italiania, Banca Italiana di Sconto, Credito Italiano, Banco di Roma. Revenues from state railways; from post, telegraph, and telephones; from state domain; from import duties on grain; and from Government sales of sugar are not included. 3 Excluding Banca Italiana di Sconto. 3 MARCH, 377 FEDERAL RESERVE BULLETIN. 1922. GERMAN FINANCIAL SITUATION. [Amounts in millions of marks.] Reichsbank statistics. Discounts. 1 Note circulation. 1 Gold ' i reDis- ! Comservo.1 ! counted mercial . ! treasury i paper. I bills, i Value of i -new stock1 Darlehnsiand bond.1 kassenscheine in circu- : placed on15 lation.1 Receipts Revenue; Treasury : German ' 25 of State bills put-1 market, i stocks, bonds. Deposits.1 Clearings., from taxes. railways. Standing. , 1913, average. 1920, average. 1921, average. 1,068 ; : 1,092 I 4 47,980 .1,056 i 4 83,133,1 ! 1921. February July August September... October November... December 1,092 1,092 1,024 1,024 994 994 995 1922. January February »... l i j ' ; = i 996 ; Index numbers of securities prices.' Situation of the Government.; 1,958 53,964 80,952 17,702 j 20,213; 6,136 , 57,898 ! 89,297 .•. ! 13,145 8,861 • 6,285 j 207 13 _^ j 3 .. ! 220 2,358 j 192,832' i i 2,655! ' .. \ ' j 1 : ' 4 56,451 i 67,427 79,982 1,136 77,391 84,044 • 1,002 80,073 ; 98,422 i 1,142 86,384 98,705 : 881 91,528 114,023 ! 1,446 ; 100,944 132,331 • 1,062 113,639 126,160 134,252 ; 1,592 1,857 17,357 i 70,499 10,755 1 15,824 78,337 8,358. 13,650 I 79,172 7,837 i 19,980 i 98,004 ; 7,610 !j 18,303 I 119; 496 7,316 25,313 140,493 ; 7,330 ; 32,906 I 120,835 • 8,325 1 23,412! 116,680 26,526 1 115,376'' 120,026 . I 7,766 5,566 5,145 4,908 6,185 7,044 8,016 8,046 j 7,977 I ' 1,590' 2,269 i 2,416 1 2,599 • 2,825 ' 3,397 ' 4,329 j 161,750 190,770 202,872 210,504 218,000 226,676 245,921 2,397 \ 1,507 : 1,228! 1,534 2,889 ! 7,135; 5,965' ! \ 255,678 1 277,320' • ' • 6 269 ! «206 ' 5 181 5 4.831 '....J '223! 8 222, ' 152 8 154 ! ' ' ! j i i 147 * End of month. 2 Calculated by the Frankfurter Zeitung with prices of 25 stocks, 10 domestic and 5 foreign bonds (prices as of Jan. 1,1921=100). These gurcs, recently revised, now include subscription privileges which were heretofore omitted, s End of March, 1913. * Combined figure for all discounts. » As of Nov. 10,1921. * As of Dec. 30, 1921. ' As of Jan. 5, 1922. 8 As of Feb. 3, 1922. » Latest figures subject to revision. SWEDISH FINANCIAL SITUATION. [Values in millions of kronor.] : Situation of the ! Government. Riksbank. Joint-stock banks. : Protested bills during month. 1 i Gold coin and bullion. 1913, end of December l920,average 1921, average 1921, end of— February July August September October November December 1922, end ofJanuary February 1 Note circu! lation. ; : 102.1 269.2 279.7 . i 281.8 : 280.3 : 285.0 275.9 275.5 ! 275.0 274.7 9 Bills Float- s disLoans ing ! counted and dis- • NumState j with counts. :j ber. debt. Riks; bank. 234.5 : 733.0 225.8 660.6 : 273.7 628.2 I 20.1 1,280.8 j 248.1 •, 687.6 : 629.4 \ 632.4' 672.4 , 650.3 ' 628.0 ; 627.7 1,341.5 1,359.9 1,367.8 1,393.1 1,409.2 228.4 ' 177.2 152.1; 113.4 ; 126.4 . 1S7.6 . 331.4 ; 274.5 = 563.0 : 337.2 271- 4 579.0 Source: Kommorsiella Mod del an den. 92371—22 De- .Funded State posits. i' debt. 134.3 137.1 60.1 62.9 76.8 Value. 138.9 ; 2,286.9 4,314 476.3 : 6,008.3 ; 3,586 388.6 ' o, 948. 2 0.007. I ' i : 1.9 6.4 15.2 451.3 ! (i, 119. 2 . 362.6 1 5,929.9 • 344.8 5,937.1 , 329.7 ; 5,900.9 • 340.9 j 5,837.4 ' 354.4 ' 5,735.1 •• 464.3 i 5,655.8 14.1 16. S 16.0 10.3 12.6 13.1 10.1 420,8 ! 5,654.2 i 5.571.8 0,411 • 7,383 6,515 5,786 ! 6,449 6,089 • 0 . 2 9 8 •• Business Foreign failexures change during1 index. 1 month. Number. Foreign exchange value of the krona abroad (foreign currencies =---100). Value Index ;j of stock num- issues ber of : xegistered stock I prices— during ! A list. 1 the i month. 309 !. 196 ! 112.9 432 ; 121.8 I 116.4 ' 381 413 : 119.3 ; 353 : 119.5 121.4 4.93 505 i 124.9 491 i 124.0 .528 , 126.3 VA\ 0 258 . 176 , 121 , . 24,0 60.6 138 125 I 120 I 114 107 i 104 i, .107 '. 71.2 67.1 30.9 13.0 16.5 378 FUIMOKAL KESERVE NORWEGIAN FINANCIAL SITUATION. [Tn millions of kroner.] Norges Bank. Gold holdings. Loans and jClearings atj index* ; discounts. ''Christiania. j (Farmand)j Note circulation. cies. Per cent. 2 84.2 , 147.4 . 147.3 ' - 1 , 122.5 450.5 410.9 14.4 102.4 111. 4 88.4 ;. 419.1 j 443.0 : 652 ! 537 9~i.Y 32 SO 147.3 147.3 147.3 . 147.3 147.3 147.3 ' 147. 3 423. 3 428.4 i 421.0 415.9 ; 411.4 395.4 409. S ; 133.7 1.00.0 110.2 SS.6 112. 9 121.3 140.8 ' 457.1 • 452.0 = 454.8 ' 42.0.0 452.5 438. 0 476.2 588 : 541 580 637 589 538 : 551 99. 4 82.4 81.9 85.9 86.2 95.4 71 96 101. 102 78 89 81 147.3 1 !)•] 1, end of July 1920, average 1921. average 1921) end of— January July.. I August September October November December 19*22, end of— Januar v 378.1 L30.8 . 433.2 2 Average value of krone in terms of foreign currencies. JAPANESE FINANCIAL SITUATION. ; 524 : Includes balances abroad. 1 [Amounts in millions of yen. .Bank of Japan. Specie Note reserve circulation. for notes.' 2 1913, average. 1921, average. 1.220 1921. End of— February.. July August September. October November. December.. Knd of January... February. 210 1,200 Tokyo banks. Current j Ordinary I Advances ; Govern- ! J'rival;© loans and j on foreign ' merit dedeposits discounts. \ bills. posits in in Japan. Japan. .107 : 33 39 297 40 23 31 32 30 30 20 222 330 345 293 ! 309 ! 325 i 203 I 47 • ..Ul. ; .1.72 . 192 1232 ,255 .283 1..1U 1,172 1,192 .1,232 1,255 J',2G4 J,2!G 1.07 ! 101 ' 157 ! 197 , 298 1,377 1,210 1,241 1,223 224 172 Total Tokyo Average loans bank discount Tokyo clearings, rate associated ; total in (Tokyo ba nk. tl i c month. m a r k e t ) . 7 50 1,932 364. [ 2,572 | 8.38 9.00 130 70 35 30 31 37 35 1,874 1,987 1,951 1,955 1.993 j l'.989 2,000 2,143 I 2,341 : 2,816 j 2,(327 i 2,079 i 2,783 i 3,340 i 9.71 8.36 8.43 8.28 8.50 8.79 9.20 35 1,984 1.95) 2,246 i 2,438 , 9.02 1922. 277 •328 Kigureri a p p l y tolas!, d a y ofino.niliinca.se of Bank of Japan, to last Saturday of ihc m o n t h in the case of the other items. - This includes the specie segregated against notes only. It includes gold credits a I.-.road as v ell as 1 •i>lli<;n and coin al home. INDEX. Page. Acceptance liabilit ies of mem her banks, 1921 283 Acceptances: Held by Federal Reserve Banks 346 Purchased by Federal Reserve Banks 344 Agricultural confcrence, work of 201 Agricultural credit 20.1-208 Agricultural exports, value of 268 Agricultural loans, proportion of, to total loans 266 Agricultural movements, index of 295 Amendment to Federal Reserve Act, proposed, relative to agricultural credit '. 265 Argentine financial statistics 31.4 Authority l,o purchase, use of, by Japanese banks 299 Bank debits, February 358 Banking and Currency Committee, Idler of Board to, approving bill granting long-term credit to farmers 31S Business and financial conditions: Abroad 301-316 In the United States 271-2S2 Canada: Condition of chartered banks of, 19.13-J92.1 369 Wholesale prices 325,329 Charters issued to national banks 317 Charts: Assets and liabilities of Federal Reserve Banks and member banks , 347 Debits to individual account 358 Foreign exchange 367 Index numbers of domestic business, 19MM922 294 Wholesale prices in England 319,321 Wholesale prices in the United SI nl es 320 Clearing and collection: Gold settlement, fund transact ions 303 Operations of the system during February 302 Number of banks on par list 362 Condition statements: Federal Reserve Banks 347.351 Foreign banks of issue 367-370 Member banks in leading cit ies 317,355 Abstract of ". 371 Credit practice of .1 apanese banks 296-300 Credit to farmers, letter of Board to Banking and Currency Committee approving ' 3.1 S Denmark: Bank of Copenhagen, condition of, 1913-1921 -.... 370 Wholesale prices in * . 325 Discount and open-market operations of Federal Reserve Ban ks. 3-12-316 Discount rates: Agricultural paper 260 Bank of England, reduction in 301 in ellcct -Nfarch 1 301 Prevailing in various centers 305 En gland: Acceptance liabilities of 13 leading banks 281 Business and financial conditions' 303,375 . Cost of living 330 Discount rates of Bank of Kngland, reduction in 30! Foreign trade 1 330 (jeddes's report 304 Index of industrial activit y 332 Reparations receipts '. 303 Wage reductions during 1921 :W5 Wholesale prices 319,321,325,327 iOxport situation in relation, to agriculture 207 Failures, commercial, reported 31.7 Federal Advisory Council on agricultural credit 203 Federal Reserve'note accou nl;.'. 35-1 Fiduciary powers granted to national banks 317 Foreign exchange rates 300 Foreign loans, attitude of Stale Department toward 282 Foreign trade: Commercial credit practice of Japanese banks 290 France 307,331 England 330 Germany 332 I ndcx of 334 I taly :m Japan • 331 Norway 331 Sweden. 331 France: Acceptance liabilities of banks in 284 Budget 305 Business and financial conditions 305 Cost of living 307 Foreign trade 307.331 I ndexes of industrial activity 333 I ntercst rates '. 300 Issues of securities during 1921 300 Retail prices in Paris ' ' 330 Tax receipt s 306 Wholesale prices 307,325,327 (ienoa intcrna tion al confereni-e 303 Germany: Budget for 1922 312 Business and financial condii ions 312 Cost of livi ng in B e r l i n . , . , . , . , . , 330 Page. Gemianv --ConLinucd. Foreign trade 332 G old prices in paper marks 313 Indexes of industrial activity 333 Reichsbank situation 313 Reparations situation 301,303,31.1. Wholesale prices 325,327 G old settlement fund transactions 363 Imports and exports of gold and silver 269,363 Index numbers: Foreign exchange 1 366 Foreign trade 334 International wholesale prices. United States and Kngland... 319 Ocean freight rates '. Physical volume of trade 335 Retail prices in principal countries 330 Trade and production 292 Wholesale prices abroad 319-329 Wholesale prices in the United States 322,325 In!crest rates prevailing in various centers 365 ' Italy: 'Acceptanceliabilities of banks in. 284 Banca di Scontocrisis 310 Bank of "Italy, condition, of, 1913-1921 368 Business and financial conditions 308,376 Foreign trade 331 Reparations claims 308 Retail prices 309,330 Wholesale prices 309,325,327 Japan: Commercial credit practice of ban ks in 296-300 Financial statistics! 378 Foreign trade 331 Wholesale prices 325 Joint Commission of Agricultural Inquiry: Bill affording long-time credit to farmers recommended b y . . 318 Work of 202 K nit. goods production 339 Law department: Letter of Board to Banking and Currency Committee approving bill granting long-term credit to farmers 318 Lei 1 ers of credit, use of, by Japanese banks 297 Loans, foreign, statement of State Department on flotation of 282 M anufact urcd goods, index of 295 Member banks: Condition of 347,355 Abstract of 371 Number discounting during February 3-13 Number in each district 343 State banks admitted to system 31.7 M in oral products, index of...'. 295 Money, stock of, in the United Stales 361 National banks: Chart ers issued to 317 Fiduciary powers granted, to 317 Norway: Bank of Norway, condition of, 1913-192J 369 Financial conditions 378 Foreign trade 331 Wholesale prices 325,328 Ocean freight rates 339 Par list, number of banks on 362 Physical volume of trade 335 Prices. (Sac Retail prices: Wholesale1-prices.) Rates, discount. (See Discount rates.) Reparations payments, Gcrman 303,308,31.1 Reserves, deposits, and note circulation of Federal Reserve Banks. 350 Retail pi ices in principal countries 330 Ret ail trade, condition of 340 Silver import s and exports 209,3(53 State bank members: Accept ai ice liabilities of 283 Admissions to system 317 Condition of, abstract of 371 State Department, statement of, on flotation of foreign loans 282 Sweden: Bank of Sweden, condition of, 19.1.3-1921 369 Financial statistics 377 Foreign trade 331 Retail prices 330 Wholesale prices 325,328 Switzerland: Bank of Switzerland, condition of, J9L3-1921 368 Wholesale prices in 1 325 Tobacco finance, study of 285-292 Trade: Foreign. (Sec Foreign trade.) Physical volume of 335 Retail 340 Wholesale 342 Trade and production, indexes of 292 Trust receipt, form of, used by Japanese banks..' 299 "Wage reductions in England .* 305 Wholesale prices: Abroad 3L9-329 In the United States 281,31.9,322,325; 32(> Italy 309,325,327 Wholesale trade, condition of '.. 342 I FEDERAL RESERVE DISTRICTS 1 £ & [ Po kan f I Pv —"^--^ / *^"H \ . e Hi •53 MONT. ena ' I N.DAK. S ( / f-T--/ / / \c>i» ^ •2 ! ^tv; i V3 Xr * / v? \ MINN, f MINNEAPOLIS ( 1 ' WYO. f J ( .^v S.DAK. I 1 ( £_ fte.Cif\r7— /ja / i 1 k [ NEBR in *w vertverm COLO. - IOWA 0maha.\ L- — V - s i KANSAS C I T Y ^ KANS. f 1 N.MEX. 1 0. j 4 ^ ^ . ^ VLouisvi^J \ ST.LOJJIS j - II »£, OKLA. \ 0klah5maCity 1 Ky^^^ ILL. 1 IND. f TENN. J* ARK. ™J£^ / 1 ' i f i d r H Little*Rock/ 1 DALLAS® J WPasV 1 MISS. ! i— / J T c \/ A r* TEXAS » > 1 • *• ! - V i"LAW .y I /"ft'' Savanna T -/1 I A V ^ W J c sonviile\ ak -N^^New Orleans — • 30 UN PARft-5 OF FEDERAL RESERVE DISTRICTS 3OUNDARi£5 OF FEDERAL RESERVE BRANCH TERRITORIES ® FEDERAL RESERVE SANK CITIES * FEDERAL RESERVE BRANCH CITIES , O FEDERAL RESERVE BANK AGENCY \ f \ ,'J| t : \ \V 1